GLBM May 2015 by M3 Group Publications

BUSINESS MONTHLY GR E ATE R LANS ING

MAY 2015

FRONT COVER

Michigan’s Oil Industry Affected by Lower Gas Prices In this issue •

ANNUAL LAW DAY COMPETITION ENCOURAGES THE COMMUNITY TO EXPLORE THE RULE OF LAW

•

POSSIBLE ENERGY SHORTAGE COULD HIT MICHIGAN BY 2016

•

MILLENNIAL WORKERS CALL FOR OPEN-CONCEPT OFFICE SPACES LansingBusinessNews.com

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G R E AT E R

L A N S I N G

BUSINESS MONTHLY

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

MAY 2015

News Open-Concept Office Spaces Attract Millennial Workers .................................................... 6 Understanding Indiana’s Religious Freedom Restoration Act .......................................... 10 Possible Energy Crisis to Hit Michigan in 2016 ....................................................................... 12 Community Invited to Explore the Rule of Law Through Annual Contest.................. 14 Understanding Social Media Law..................................................................................................... 16

Features

Michigan’s Oil Industry Affected by Lower Gas Prices In this issue •

ANNUAL LAW DAY COMPETITION ENCOURAGES THE COMMUNITY TO EXPLORE THE RULE OF LAW

•

POSSIBLE ENERGY SHORTAGE COULD HIT MICHIGAN BY 2016

•

MILLENNIAL WORKERS CALL FOR OPEN-CONCEPT OFFICE SPACES

Mid-Michigan Oil Industry Experiences Decline in Production........................................ 18 How Lawyers can Help Businesses ................................................................................................ 22 Western Michigan University Cooley Law School Brings Diversity to Lansing ....... 24

Cover photography by Mark Warner

Departments

The Greater Lansing Business Monthly (Volume 28, Issue 5)

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

The Greater Lansing Business Monthly is published monthly by M3 Group at group 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020w807. Subscriptions: Subscriptions are available at $22 per year for postage and handling or $38 for two years. Call (517) 203-0123 or visit lansingbusinessnews.com to subscribe. Postmaster: Send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2015 The Greater Lansing Business Monthly, Inc. All rights reserved.

Man on the Street.................................................................................................................................... 26 GLBM List ................................................................................................................................................... 28 Regional Roundup ................................................................................................................................... 30 Real Estate................................................................................................................................................... 32 Business Calender................................................................................................................................... 34 Notable News ............................................................................................................................................ 36

Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com 2

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C O M M E N TA R Y

G R E AT E R

L A N S I N G

BUSINESS MONTHLY Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz

A Team Effort

oving into the summer season, we are all celebrating lower gas prices. This dip in the cost of oil makes the overall economy in our state and region soar. Travel and tourism is up and people have more discretionary income. This bodes well for the manufacturing industries’ Big Three as well, since high demand SUVs are still a major profit center.

Media Specialist: Jill Bailey Account Managers: Megan Fleming Manny Garcia Elaina Gonzales Production Director: Kelly Mazurkiewicz 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 — President and CEO, MSU Federal Credit Union Trish Foster — Senior Managing Director & COO, CBRE|Martin Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore 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

You’re probably thinking, ‘who doesn’t like lower gas prices?’ Well, the oil industry in Michigan, and more specifically our region. When prices fall and demand is lower, the need for local energy production is much less. This creates a sector of our economy that isn’t flourishing as well as it has in the past. It really goes to show that there are always two sides to any issue. When unemployment is low, it’s great because most people are working. However, this can be difficult for small businesses as they cannot always get the necessary people they need to sustain business function, and if you’re searching for the elusive IT professional — forget about it. Our focus on understanding more about our energy needs in this region, our country and around the world is important. There are regulations set to change how energy is generated and we are far more concerned these days on how the use of energy and its production impacts the environment (as we should be). However, the situation is complicated and phasing out one energy source and moving to another is a slow and sometimes tedious process. How will this impact how we live and consume energy in the future? Although these areas are not certain, we feel the need to keep the energy challenges and potential solutions in the forefront of everyone’s minds. You’ll continue to see this type of coverage over the months and years to come. This month we also turn to another area that should be mindfully considered: how businesses handle situations that may or may not need an attorney’s advice. One of the first things someone said to me when I started my business more than 13 years ago was to find a great attorney and accountant. As a new business owner, it was difficult to forecast all of the reasons I would need these trusted confidants. However, today it completely makes sense. I don’t believe that you always find the best fit for your organization initially and you should never be afraid to interview these potential advisors. After all, you’re sharing a great deal of personal information and comfort, knowledge and fit are of the utmost importance. After 13 years, I truly feel like I have a team — accountant and attorney — that fits my specific needs. I can turn to them with questions, concerns and issues that my business may encounter. Finding someone who actually deals with scenarios that you have never anticipated is critical and allows me to sleep better at night. Find people you can trust and you will too. Be dynamic in all you do,

Tiffany Dowling | Publisher 4

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Open-Concept Office Spaces Attract Millennial Workers BY MICKEY HIRTEN

here are a few things that businesses today must do to be successful: improve collaboration among employees, attract and retain younger workers and cut real estate costs.

For many businesses, this begins with redesigning their offices. Desks and work stations are smaller. Meeting areas are decentralized and even comfortable. Space does double duty, is shared and, of course, wired. Video screens abound. TWO MEN AND A TRUCK took the leap when it expanded and renovated its Delhi Township headquarters, which was built in 2000. Working with architects and designers from Hobbs & Black,

the fast-growing moving franchise company created a workplace to reflect its corporate objectives and business challenges. It all coincided with a major addition to the building, completed in 2014. “We wanted to open communications, is the best way to say it, to be more interactive and to be able to collaborate more freely,” said Heidi Bumpus, the company’s finance and compliance coordinator and the official who managed the renovation project. For TWO MEN AND A TRUCK, the office transformation to support these goals was dramatic. “When we opened this building, everyone had an office and a door,” said Communications and External Affairs Manager Dawn Kroeger, noting that 15 years ago this promise of personal space to employees was a recruiting tool. At TWO MEN AND A TRUCK today, private offices largely are vacant or repurposed, replaced by open floor plans, windows and natural light, colors and inspirational messaging to reinforce the corporate culture. And according to Bumpus, it works. “We are able to respond quicker, to set up teams to work on common problems.”

PHOTOS BY M IKE FRAN CE

While TWO MEN AND A TRUCK took the big leap to an open office environment for its 132 workers, other companies are more measured in their shift, but nonetheless recognize the value of breaking down internal office barriers.

Dewpoint is located within the Knapp’s Centre on Washington square. 6

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Dewpoint, which last year moved into the Knapp’s Centre, retains some trappings of a traditional office environment, but has adapted. At the company, which specializes in providing business and technology solutions, much of its workforce is clustered in workstation groupings and there are a dozen or more offices for managers and executives. Its board room is traditional, but conference rooms veer from the stereotype. One has a workbench table with high seating and video display. Another has a standard table seating arrangement in one half and fire pit seating in the other.

The cafe at Dewpoint is a great way for employees to meet with customers while engaging in quality face-to-face time.

“IF YOU LOOK AT INFORMATION TECHNOLOGY PEOPLE, YOU WILL SEE THAT THEY WANT TO WORK WITH OTHER SMART PEOPLE. MILLENNIALS WANT AN OPEN AND DYNAMIC ENVIRONMENT AND WANT TO IMPACT THE COMPANY RIGHT AWAY.” — KEN THEIS

Private spaces are scattered throughout its second floor — rooms for staff or visitors to set up and work. Like TWO MEN AND

A TRUCK, there are also conversation clusters scattered through the offices. The cafe also serves as an escape valve, a site for smaller gatherings. There is a large workbench table near a window and power is easy to access in the room. “We organize to be collaborative,” said Dewpoint President and Chief Executive Officer Ken Theis. “We need to be an organization that can collaborate across different functions.” The office trappings and structure support this goal. A conference room table is topped with a white board. “People just start writing on it,” said Theis. Throughout the day, workers leave their stations and set up in the cafe or in a conference area. They meet with customers away from desks, engaging in quality face-to-face time.

It was a conscious effort at Dewpoint to balance ‘me’ space with ‘we’ space,”said Theis. “If you look at it we purposely downsized so even the offices are very small. We want people to feel comfortable in their own space, but not so comfortable.” Theis acknowledges that Dewpoint’s workplace appeals to its Millennial employees, those in their twenties and early thirties. “The baby boomers don’t like it. I’m in the middle, a GenXer.” But for a company tied to technology, Dewpoint knows it has to support an energetic culture. “If you look at information technology people, you will see that they want to work with other smart people. Millennials want an open and dynamic environment and want to impact the company right away,” Theis said. LansingBusinessNews.com

“SOME COMPANIES ARE READY TO MAKE THE CHANGE. OTHERS ARE SLOWLY MAKING IT UP AS THEY GO ALONG. TWO MEN AND A TRUCK WAS MOVING INTO A NEW PHASE OF LEADERSHIP IN THEIR COMPANY AND PART OF NEW LEADERSHIP IS MAKING A MARK ON THE COMPANY.” — RUSS HINKLE

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The company’s strategy seems to be working. Dewpoint, with 110 employees — 50 to 60 working at its headquarters — has added space since moving into Knapp’s Centre and is planning another expansion. There are advantages but also challenges in adopting a new workspace model,” said Russ Hinkle, a senior associate and architect with Hobbs & Black. He worked with TWO MEN AND A TRUCK on its transformation. “Some companies are ready to make the change. Others are slowly making it up as they go along. TWO MEN AND A TRUCK was moving into a new phase of leadership in their company and part of new leadership is making a mark on the company.” One of the factors driving the change in office design is cost, said Hinkle. “Getting away from the traditional office model means fitting more people into a building.” But crowding also introduces noise and focus issues. He said that the use of sound dampening devices was an important part of the design at TWO MEN AND A TRUCK. It is also important to incorporate safety valves. At Dewpoint and TWO MEN AND A TRUCK, there are getaway spaces.

TWO MEN AND A TRUCK’s corporate office is located on Keystone Ave. in Lansing.

Some of these spaces aren’t much larger than a phone booth. But for personal phone calls or working with sensitive documents, they are fine. “There are times when you just need alone time or privacy,” Theis said.

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.

TWO MEN AND A TRUCK display their motto as a friendly reminder to it’s employees. The Grandma Rule: treat everyone the way you would want your grandma to be treated. LansingBusinessNews.com

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Understanding Indiana’s Religious Freedom Restoration Act BY KRIS TINE RICHMON D

Editor’s note: To see a list of our cited sources and to check in for updates go to lansingbusinessnews.com.

he controversial Senate Bill 101, or the Religious Freedom Restoration Act (RFRA), signed into law by Indiana Governor Mike Pence on March 26, 2015 had opponents across the country fearing that it would allow discrimination, particularly against the LGBT community. However, according to Pence, this was not the bill’s intention. The Indiana RFRA prohibits state or local governments from substantially burdening a person’s ability to exercise their religion — unless the government can show that it has a compelling interest and that the action is the least-restrictive means of achieving it. The RFRA is intended to protect the rights of everyone, including businesses, regardless of their religious affiliation or lack thereof. The law takes effect July 1, 2015. A similar federal statute with the same name was passed by President Bill Clinton in 1993. In 1997, the U.S. Supreme Court ruled the federal RFRA did not apply to states. This is why 30 states have a RFRA judicial review standard and 19 states have enacted their own versions of religious freedom laws. The adoption of the RFRA standard is intended to assure that state courts follow the same reasoning and case law as the federal courts. Advocates of the law praised its passage, saying it would protect people with sincere religious beliefs from government laws and actions that infringe on their religious practices. Yet opponents such as the Human Rights Campaign (HRC), a national civil rights organization working to achieve lesbian, gay, bisexual and transgender equality, see RFRA as an anti-LGBT discrimination law. In response to this growing controversy, on Thursday, April 2, Gov. Pence signed into law a measure aimed at removing fears that the state’s new “religious freedom” law would allow businesses to discriminate against gays and lesbians. Gov. Pence worked with Indiana lawmakers and business and community leaders to alter the language of the RFRA to ensure it would not create a license for businesses to discriminate or deny services to any individual, regardless of sexual orientation or gender identity.

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However, proponents of the law such as Advance America and The Heritage Foundation, say that the Indiana RFRA is good policy and doesn’t need a ‘fix.’ They say critics wrongly characterize the religious freedom protections. In an April 2, 2015 article by The Daily Signal, it asserts “the ‘fix’ explicitly exempts sexual orientation and gender identity laws from the Religious Freedom Restoration Act except with respect to a narrow class of nonprofit religious organizations … In other words, it eliminates any balancing test for sexual liberty and religious liberty. It says sexual orientation should trump religious liberty. That’s bad policy.” Some may wonder whether the law that passed in Indiana could pass here in Michigan. According to an April 28, 2015 MLive. com article, several leading Michigan businesses wrote letters to lawmakers opposing the passage of a RFRA law saying it could have negative economic consequences. Steelcase, Kellogg Co. and Herman Miller are among the businesses that say the measure could hinder their efforts to attract talent and foster inclusive workplaces and communities. These same companies are each part of the Michigan Competitive Workforce Coalition, a group pushing lawmakers to update the Elliott-Larsen Civil Rights Act to include sexual orientation and gender identity. According to an April 2, 2015 Detroit Free Press article, Governor Rick Snyder was quoted as saying he would

“veto RFRA legislation in Michigan if it is a standalone piece of legislation.” A Religious Freedom Restoration Act bill was introduced in the Michigan House of Representatives at the end of 2013-14 legislative session, but never made it to Snyder’s desk. A similar bill was recently introduced in the Senate at the beginning of the new legislative session by State Senator Mike Shirkey.

Kristine Richmond is the Public Relations Specialist at M3 Group. She specializes in helping clients tell their stories of changed lives, fiscal success, philanthropic support and more by creating engaging messages that grab customers’ attention and cause them to act.

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NEWS

Possible Energy Crisis to Hit Michigan in 2016 BY KA LYNNE MCINTY R E

ccording to DTE Energy and Consumers Energy, two of Michigan’s largest energy providers, there could be a serious shortage of electricity starting in 2016. There are two big reasons for the energy shortage: federal mandates and a market that is partially deregulated, causing uncertainty of new energy investment. The federal government has mandated the closing of coal plants, partially due to the 2008 Clean, Renewable & Efficient Energy Act, as well as other recent federal regulations. Along with following federal regulations, some of the plants are closing simply because they’re too old. There are nine total coal-fired plants that are expected to retire over the next two years. Among those are the “Classic Seven” Consumers Energy plants, which were capable of generating 950 megawatts of power. With those nine plants closing, as much as 1.3 gigawatts of power is expected to be lost. To put that in perspective, that’s a big enough power source to run Detroit, Grand Rapids and Lansing. With those nine coal plants no longer in operation, energy providers are going to have to stretch their resources to provide enough electricity to customers. Efforts to stretch resources have already begun, with the opening of a power plant in Dearborn, along with the purchase of the DPC Juniper power plant in Jackson (a $155 million investment). GOVERNOR RICK SNYDER HAS STATED HIS INTENTIONS OF MOVING MICHIGAN AWAY FROM COAL-POWERED ELECTRICITY AND TOWARD NATURAL GAS POWER. But with the market partially deregulated, building new power plants is something that energy providers are unsure of. The problem with the market currently is that while some of Michigan’s electricity can be provided from out-of-state utilities (up to 10 percent), the rest is provided by in-state utilities, sanctioned by the government. This leaves the choice up to the consumer in some situations, which energy providers aren’t comfortable with.

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Utilities feel the market isn’t stable enough to make an investment as large as building a new plant, especially when the cost is billions of dollars. The real problem will result if and when the customers who currently buy their electricity from an out-ofstate provider decide to leave their providers and come back to Consumers Energy. With the shortage of electricity expected, it’s hard for utilities to plan for the future. To further the issue, there are a wide variety of proposals regarding the energy market on the docket this year. State Rep. Mike Shirkey is planning to reintroduce legislation to move Michigan in the direction of a deregulated market once again. Shirkey first introduced the legislation in 2013, where it was stopped in its tracks by a unanimous vote of opposition from the Jackson City Council members. Council members claimed the legislation would hurt the city of Jackson considerably, since Consumers Energy is based there. Governor Rick Snyder has stated his intentions of moving Michigan away from coal-powered electricity and toward natural gas power. In April, Snyder proposed such a plan, which included an outline to keep the current 10 percent customer choice cap. It would also increase Michigan’s renewable energy goal from nine percent to 19 percent by 2025.

On the flipside, other state representatives are lobbying for an entirely regulated market. State Rep. Aric Nesbitt, Chairman of the House Committee on Energy Policy, introduced one such bill on March 5, calling for customer choice to be eliminated entirely. Whatever the final decision is, Michigan residents can expect to see changes within the next year.

Kalynne McIntyre is the Digital Branding Specialist at M3 Group in downtown Lansing. She is a Michigan State University graduate, with a Bachelor’s Degree in Advertising.

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Community Invited to Explore the Rule of Law Through Annual Contest BY A NN H. KAMMERER

hile one day honors it, every day is affected by it.

Every May 1 since 1958, citizens have been invited to join the legal community in celebrating Law Day. President Dwight D. Eisenhower designated Law Day as a way to acknowledge the rule of law and how it contributes to the freedoms all Americans share. In turn, the American Bar Association sponsors yearly commemorations and an annual contest that help improve understanding of a legal system that shapes the American way of life.

State Bar of Michigan

On this special day, the State Bar of Michigan engages various local businesses, schools and other organizations to conduct programs associated with improving the public’s understanding of the justice system. Four years ago in 2011, the State Bar launched a Michigan version of the ABA contest to build awareness of important legal milestones in the state’s history. “Lots of things that affect us day-to-day have developed right here in Michigan,” says Kristin Arnett, chair of the Law Day subcommittee and an attorney practicing with Newburg Law in Grand Ledge. “The contest provides a great way to help people focus on Michigan’s legal history, and help build their understanding of how law affects them on a daily basis.” SYMBOLS OF LAW

Since its inception, Michigan’s Law Day contest has worked to inspire contestants to think beyond the traditional essay. Contest organizers challenge residents to undertake “out-ofthe-box” entries that engage the community in understanding the rules of law, including dance, music, poems or even video games. Other types of entries may include coloring books, mock trials, re-enactments, dramatizations and the essay. “Our contest is a little different,” says Arnett. “With the ABA, contestants are given a theme and asked to write an essay 14

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about how that theme applies to their lives. We revamped our approach to make things open to interpretation instead of giving particular directions.” The contest theme for Michigan’s 2015 Law Day is “Symbols of Freedom Under the Law.” Examples of those symbols include the nation’s flag, a county courthouse or a voting booth. Those symbols, explains Arnett, represent important American freedoms protected by the rule of law and enshrined in the U.S. Constitution. Contest participants can choose one of the symbols to illustrate freedoms protected by U.S. law, or they can base their entry on the Magna Carta — the symbol selected by the ABA. Contestants can also create their own symbol, or depart from the theme and submit an entry that illustrates the general rule of law. Another option for the Michigan Law Day contest involves focusing on symbols that are unique to Michigan. Those symbols, Arnett says, are commemorated through the “Michigan Legal Milestones Program” that recognizes significant legal cases

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and personalities in Michigan’s history. Currently 39 milestones are recognized through the program, including the Elliott-Larsen Civil Rights Act, Freedom Road, Public Access to Public Water, as well as influential leaders such as Sojourner Truth, Gerald Ford and Augustus B. Woodward. “It’s fascinating to learn about all the things that have happened in Michigan when it comes to law,” says Arnett. “It really gives you the sense that Michigan has a place in legal history and has played an important role.” MAKING THE CASE

While May 1 is the actual date of Law Day, the State Bar extended the deadline for the contest to May 15 to allow contestants more time to explore, learn and create.

“We’ve been working hard to build excitement and awareness of the contest,” says Arnett. “Part of that involves getting attorneys out and about in the community to talk and interact with groups.” Monetary awards will be given to the top finalists, including $1,000 for first place, two $750 awards for second place, and three third place awards at $500. Winners are asked to use award funds for civic educational purposes or to highlight Law Day in their communities. Ultimately, Arnett says, Law Day is about understanding and appreciating how rules of law affect both individuals and the larger society. The Law Day contest, she says, has value as a schoolor community-based activity, or simply as an individual exercise. Lesson plans for various grades are available on the Michigan State Bar website, as well as

PLAN ON...

“The legal system is about so much more than lawyers and judges and what you see on TV,” says Arnett. “We encourage anyone to participate in Law Day and to find out more.” For more information on this years law day contest visit michbar.org/programs/lawday.

Ann Kammerer is a freelance writer living in East Lansing. She has written extensively for a couple decades about business people, educators, artists and everyday people doing good things in greater Lansing.

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Understanding Social Media Law BY A LICIA PIL MORE

ince Myspace made its Internet debut in the early 2000s, the popularity of social media has grown rapidly. According to a study conducted by the Pew Research Center, in 2014, approximately 74 percent of Internet users used social media in some form or another, with one in nine people using Facebook.

“If you want to cover your bases for utilizing photos of customers/attendees at an event or business in social media, be sure to clearly post that by attending they are implying consent unless otherwise documented,” cautioned Katie Breshahan, a marketing communications specialist at PeopleNet in a blog post about social media law.

The reach of social media is vast; people of all ages, races and classes use a variety of social sites, including Facebook, Twitter and Instagram. But perhaps its most significant characteristic is its contribution to the changes in the ways that people communicate, connect and build relationships.

The first big test of intellectual property law and copyright infringement came in 2013 when a judge found that two news organizations had improperly used images that photojournalist Daniel Morel had posted to Twitter. Agence France-Presse and The Washington post both used pictures taken by Morel in the aftermath of the Haiti earthquake in January 2010. Arguments were made that once pictures were posted on Twitter, they were free to use, but the judge ruled that neither organization had license to publish those images without Morel’s permission.

This change in the way we communicate has also impacted the way that businesses interact with their customers. Now more than ever, an online presence is crucial to the success of businesses. Social media provides businesses with the opportunity to respond to customer concerns almost instantly and makes promoting content and products easier than it has ever been. However, participating in conversations on sites like Facebook or Twitter doesn’t come without some challenges. Businesses need to be especially careful about the content that they share, or they could find themselves in some legal trouble. Although social media is very lightly regulated and laws pertaining to these issues are still being developed, issues involving user privacy and copyright infringement are incredibly common online. Knowing what is acceptable to share and promote on a business’s social page can help to mitigate legal risks. KEEPING PRIVACY IN MIND

Social media is all about sharing; many users share everything from what they’re having for breakfast to the vacations they take with their families. However, users still expect some degree of privacy when it comes to having pictures or content shared by businesses. User privacy generally becomes an issue for businesses when photos of customers or those who attend events hosted by a business are displayed on their social media pages as promotional materials without gaining consent. Although photo sharing is fairly low-risk, the more places photos are shared, the more risk there is of violating a person’s privacy, which could lead to a lawsuit. 16

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This particular case gained attention because it was one of the first to address how content published online could be used by third parties. This case began in 2010, but content ownership on social media is still an issue being discussed today, and many social media-related lawsuits deal with copyright infringement. The best way to avoid copyright issues on social media is to make sure that all non-original content shared by a business is attributed to the owner and the more specific the attribution is, the better. Linking to the original content and clearly citing any quotations, ideas or images is the best way to bypass a lawsuit. Ultimately, using common sense when interacting with customers on social media is a business’s best bet for avoiding any legal ramifications. Tips provided within this article are suggestions and not meant to provide legal advice.

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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OkemO s Office s

Suites:

Eastbrook can also be used as a single office suite or a combination of several suites.

pace

individual Offices:

Eastbrook is ideal for an individual seeking a single room for an office. The office can be smaller or larger; depending on what you want.

Unit 12:

844 sq ft.

Size:

10 x 14 sq ft.

Unit 13:

990 sq ft.

Size:

14 x 14 sq ft.

Unit 14:

952 sq ft.

Size:

11 x 19 sq ft.

Unit 15:

920 sq ft.

$14 per square foot + Utilities

Eastbrook Condo Association To find out more, please visit our website at EastbrookCondo.com

LansingBusinessNews.com

4123 Okemos Road | 517-719-8672 | EastbrookCondo@gmail.com

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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

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MID-MICHIGAN OIL INDUSTRY EXPERIENCES DECLINE IN PRODUCTION B Y MI C KE Y H I RTEN | P H OTO S B Y M A R K WA R N ER

he dramatic decline in oil prices may be good news for motorists, but it certainly isn’t for the oil industry in Ingham County. That’s right, Michigan’s Ingham County, which along with other counties in the state, produces more than six million barrels of oil from thousands of wells. Production in Ingham County totaled 98,360 barrels in 2014, according to figures from the Michigan Department of Environmental Quality’s Office of Oil, Gas and Minerals, which oversees the industry. Production increased from the 86,723 barrels reported in 2013. Eaton County’s wells produced 7,428 barrels of oil in 2014. No oil is reported from wells in Clinton County, though in past years there has been some production.

Omimex, which is based in Ludington, has 18 full-time employees, but lots of subcontractors for services as varied as trucking, welding, drilling and electrical work. Lower prices, Prior said, have resulted in layoffs and tougher negotiations with suppliers. “Vendors and other services that want our business have to reduce their prices.” Companies like Omimex and West Bay purchase mineral rights from property owners, who often share in some of the profits from the oil pumped from their land. According to Prior, these payments range from 12½ percent to 18 percent of the revenue and no responsibility for any of the expenses.

Despite lower prices, oil remains a multimillion dollar enterprise in Michigan which recorded total production of 6.5 million barrels in 2014 and 7.4 million barrels in 2013. It’s just that lower prices means that there aren’t as many millions, say producers and regulators.

Most of the wells in Ingham County were drilled in the mid-1970s by Mobil and produce about 10 barrels of oil per day. Located in the southwest corner of the county, the wells tap into the Niagran Formation and average about 4,000 feet. The Michigan oil industry has been strengthened by major finds in Jackson County, which in 2014 produced 1.7 million barrels of crude oil.

“We were doing what we can to make a profit,” said Ken Prior, a petroleum engineer and operations manager for Omimex Energy Inc., which operates about 40 wells in Ingham County and about 100 throughout the state. “We’re having to shut some wells that are uneconomical. You keep the wells producing what they can.”

Despite lower prices, most wells in the lower part of the state continue to produce, said Hal Finch, chief of Michigan’s Office of Oil, Gas and Minerals. “The expense is mostly in drilling and equipping. They are sunkin costs. Unless something breaks on the well or there is a mechanical problem, the cost of keeping them producing is pretty small,” he said.

There are still untapped areas to drill, but until prices rise there is little incentive to invest in drilling new wells, which can cost as little as $1 million or as much as $10 million. Companies like to minimize their risk by partnering with competitors. “We’d rather have 25 percent of the ownership and drill four times as many wells than have 100 percent and just drill one,” Prior said. The collapse in prices illustrates the problem. Michigan crude sells for less than the price for crude oil commonly cited by the New York Mercantile Exchange. According to data compiled by the trade publication, Michigan Oil & Gas News, the price for a barrel of oil produced in the state during March ranged from $32 to $40.75 a barrel, depending on the grade and when sales took place. Prices trended higher toward the end of the month. The NYMEX price for crude during the same period ranged from $43.46 to $45.72 per barrel. Michigan crude is discounted due to its higher sulfur content and the trucking costs to refineries. Crude from mid-Michigan wells is usually processed at the Sun Oil Refinery in Toledo. A year and a half ago, it was a different oil market altogether. The price for Michigan crude in mid-summer 2013 floated in the $91 to $101 per barrel range; the NYMEX prices were between $103.08 and $107.89, the Michigan Oil & Gas News reported. The lower prices, aside from affecting profitability, also have curtailed new LansingBusinessNews.com

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production. According to the Office of Oil, Gas and Minerals, in Ingham County, there were no applications for drilling permits in 2014 and none as of March in 2015. In 2013, there were five permit applications and three in 2012. There has been one permit application to drill in Eaton County this year; in 2014 there were nine, six in 2013 and just one in 2012. For the last four years there have been no permit applications in Clinton County. The decline in permits is happening throughout the state, said Joseph Victory, a geologist at the Office’s Permits and Bonding Unit. “When oil was at $90 a barrel it gave companies a lot more money to do some wildcatting,” added Prior. “That’s come to a halt. Now they are investing in lower cost projects. You try to survive and hope that prices will come back.”

Omimex Energy Inc.’s oil well located in Mason, MI 20

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Michigan’s Energy Future Early in his tenure, Governor Rick Snyder identified an innovative Michigan Oil industry as an example of the state’s multi-tiered approach to its energy needs. “For years, experts thought some of our old oil wells had reached the end of their lives, unable to produce any more. But it turns out that if you can get enough pure carbon dioxide into those wells, these wells can be productive again, and the carbon dioxide stays below the ground.” Snyder said in his 2012 special message on energy and the environment. He added that carbon dioxide used by the oil industry can be tapped from ammonia plants emissions. “The experiment has been a success and is a great example of a win-win for the environment and the economy of Michigan.” It is this balance that Snyder is promoting with his new Michigan Agency for Energy, unveiled in March and expected to begin operations in mid-May. It will be

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headed by Valerie Brader, who has been the governor’s deputy legal counsel and a senior policy adviser specializing in energy issues. “Michigan’s energy future requires making long-term decisions that are adaptable, affordable, reliable and environmentally protective,” Snyder wrote in his order establishing the agency. According to the Governor, its primary functions are: •

Analysis and recommendations to the Governor on proposed programs and policies relating to energy.

•

Administration and coordination of state energy programs.

•

Providing information and assistance to all departments and agencies of the executive branch of government related to energy.

•

Functioning as a clearinghouse for information received from state agencies, other branches of government, other states and the federal government.

“Michigan has about 10 coal fired plants that will be retired and we have an opportunity to determine how we are going to replace those

plants,” said David Murray, Snyder’s deputy press secretary. “We want to be able to make sure the decisions to replace those plants are made in Michigan, not in Washington, D.C.” The state’s energy policy involves issues like electric utility renewable energy requirements, business and consumer options for choosing an electricity provider and strategies to deal with a potential energy shortfall in the Lower Peninsula. “Michiganders need to know that when they reach for the light switch, they will have power, and that it will affordable and reliable, generated in a way that protects our environment,” Murray said. Or as Snyder put it: “Our efforts should be focused on ensuring our energy infrastructure can keep up with the demands of a growing economy.” The governor’s order also transfers the state’s Public Service Commission from the Department of Licensing and Regulatory Affairs to the new Michigan Agency for Energy. The realignment does not change the independence of the commission whose regulatory oversight includes the state’s public utilities.

LansingBusinessNews.com

F E AT U R E

How Lawyers can Help Businesses BY A LI CIA PIL MORE

hether your business is a start-up or well-established, lawyers are an important resource who can guide your business through any legal issues that may challenge your business. From routine legal matters to less common issues, business lawyers can help your business navigate the complexities of the legal world. Below are a few ways that lawyers can help to ensure that your business succeeds.

INTELLECTUAL PROPERTY Intellectual property can include the name of your business, the logo, brand name and other aspects of the business that should be protected under copyright. Business lawyers can assist commercial clients with acquiring necessary copyrights, patents and trademark registrations that are necessary to protect these aspects of business.

NON-DISCLOSURE AGREEMENTS Non-disclosure agreements ensure that business ideas and trade secrets are protected when partnering with other parties. Business lawyers can help draft these agreements so that businesses can expand without having to worry about having their information stolen.

PRIVACY POLICIES

BUSINESS FORMATION Business lawyers can help with the process of incorporation and ensure that the new businesses start off on strong legal footing.

BENEFIT PROGRAMS

Protecting a customer’s privacy has become an important aspect of business today; some states even require that businesses that keep personally identifiable information have a privacy policy. Business lawyers can help to ensure this by creating a privacy policy for the business that protects any information collected from customers.

Some businesses may need assistance in developing benefit programs that comply with the Affordable Care Act. Business lawyers may be able to advise business owners of their responsibilities. Business lawyers may also be able to assist clients in drafting incentive plans to help motivate employees.

EMPLOYMENT AGREEMENTS

DEFAMATION

While many businesses start as single-person operations, as the business grows, more employees will eventually need to be hired. Lawyers can draft employment agreements that cover non-disclosure agreements, employment contracts and non-compete agreements

Bad reviews can seriously damage the reputation of a business. In some cases, a business lawyer may be able to get a court order to take down defamatory online posts, or they may send a cease and desist order to the culprit.

EXIT STRATEGIES COLLECTIONS Business lawyers may aid in collecting money from customers who have stopped paying their bills. If a business owner decides to go to small claims court, a lawyer may walk the owner through the process and provide advice on the best way to present evidence and support the case.

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Just as business lawyers can help with the creation of a new business, they can help develop policies in regards to ending the business. For example, if a partner or major shareholder decides to leave the business, the business plan may allow for the business to close or for the remaining members or partners to buy the party’s share of the business back.

JULY 7-12 F E AT U R E

DOWNTOWN LANSING

2 0 1 5

A R T I S T

L I N E U P

JULY 7 MEGHAN TRAINOR MISTERWIVES / SKIZZY MARS / CHARLIE PUTH / LIFE OF DILLON / RAJIV DHALL FLINT EASTWOOD / LESS IS MORE

JULY 8 JANE'S ADDICTION IN THIS MOMENT / FAILURE / HERE COME THE MUMMIES / ALIEN ANT FARM EYES SET TO KILL / KALEIDO / VANDALAY / HEARTSICK THE M MOST POWERFUL WEAPON / ANA

JULY 9 THE BAND PERRY PARMALEE / OLD DOMINION / BRETT KISSEL / MORE TO BE ANNOUNCED!

JULY 12 EMPIRE OF THE SUN THE FLAMING LIPS MOTION CITY SOUNDTRACK / MORE TO BE ANNOUNCED!

STAY TUNED, MORE ARTISTS WILL BE ANNOUNCING SOON!

MORE INFO AT COMMONGROUNDFEST.COM LansingBusinessNews.com

F E AT U R E

Western Michigan University Cooley Law School Brings Diversity to Lansing BY MICKEY HIRTEN

t’s hard to find local economic development literature that doesn’t cite Lansing as home to Western Michigan University Cooley Law School. The Lansing Regional Chamber of Commerce promotes it, and so does the Lansing Economic Area Partnership. They, along with business leaders and city officials, see the school as the institution that changed the face of the city.

WMU-Cooley, detailing the affiliation, emphasizes that it does not change the governance of either school and that it does not involve funds or financial support. Western Michigan University, with 22,093 students enrolled in the Spring 2015 semester, is taxpayer supported and had long considered establishing a law school to complement its programs.

There is no bigger supporter than Lansing Mayor Virg Bernero. “Cooley Law School has been absolutely pivotal to downtown Lansing’s renaissance, as much a part of the turn-around as the baseball stadium. The impact was transformative,” he said.

What the affiliation brings both schools is an opportunity to align their offerings.

One of the nation’s largest law schools, WMU-Cooley is headquartered on South Capitol Ave. where it conducts classes and oversees its four-campus network: Lansing, Auburn Hills, Grand Rapids and Tampa Bay, Fla. Its students populate downtown apartments and lofts; they support its restaurants and bars. Graduates gravitate to area law firms and business, and some to politics. “Lansing was a sleepy capital city. Cooley brought in this pipeline of talent. These were people who not only wanted a law school, they wanted to live downtown,” Bernero said, adding that the influence continues with WMU-Cooley students still stoking the demand for “cool spaces and cool places to eat and drink.” “NOT EVERYONE SHOULD BE A LAWYER. BUT THAT IS DIFFERENT THAN WHETHER SOMEONE SHOULD OBTAIN A LEGAL EDUCATION. HOW CAN PEOPLE BE WORSE OFF WITH MORE EDUCATION? A LAW DEGREE OPENS OPPORTUNITIES.” — LAWRENCE NOLAN The private school, which was founded in 1972 by former Michigan Supreme Court Chief Justice Thomas Brennan has been a Lansing-based, $100 million enterprise. It affiliated with Western Michigan University in 2013, an arrangement that is less binding than the new name suggests. Both schools continue to chart independent courses.

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“From the local perspective, we expect that our affiliation with WMU, which has had a presence in Lansing for many years, will lead to increased educational opportunity not only for those who wish to become lawyers, but also for the many governmental employees in town who seek advanced education in public administration. Our shared JD/MPA program may provide that opportunity,” said WMU-Cooley Associate Dean of External Affairs and Senior Counsel, James Robb. The affiliation also allows the law school to rebrand itself. Operating as the Thomas M. Cooley Law School, the institution reported that its enrollment peaked in the 20122013 academic year with 3,745 students in its juris doctor and LLM programs. It promoted itself as having the “largest law school faculty in the nation”: 131 full-time faculty and 286 adjunct faculty members. Unlike the University of Michigan’s highly selective law school, or Michigan State University’s somewhat selective law college, Brennan embraced an egalitarian approach to legal education. Its student body is diverse, and many students attend part-time. In a 2014 filing with the American Bar Association, WMU-Cooley reported that the median undergraduate grade point average for its students was 2.96; the median LSAT score was 145. For the same period, at the Michigan State University the median GPA was 3.54 with an LSAT score 155. At U of M it was 3.74 for the GPA and 168 for the LSATs. Given the opportunity for a legal education, students flocked to Cooley, that is, until they didn’t. Robb offered this perspective: “Enrollment at Cooley and at law schools across the nation increased during the early years of

Cooley Law School is headquartered on South Capitol Ave.

the recession. That increase was typical for graduate education during a down economy. But what is not typical was the extent of the recession, which later led to a national decrease in enrollment.”

current chairman of the school’s board of directors, believes the decline in law school enrollments is reversing. And he sees a stronger demand for lawyers as a forecast wave of retirements affects the profession.

developing relationship that will expand legal education over the next ten years. It’s a win-win.” situation,” Nolan said.

WMU-Cooley today is about half the size it was at its peak. For the 2014-2015 academic year, it reports 1,880 students enrolled at four campuses. Responding to the steep nationwide decline in first-year enrollments, the school announced plans in 2014 to close its Ann Arbor operation. For the current academic year, it said that there are 49 full-time faculty members, 26 deans or librarians who teach and 127 parttime faculty members.

He also takes a broader view of WMUCooley’s “open admissions” philosophy. “Not everyone should be a lawyer. But that is different than whether someone should obtain a legal education. How can people be worse off with more education?” He also added that “a law degree opens opportunities.”

Lawrence Nolan, who graduated from the first Cooley class and who is the

He cites the affiliation with Western Michigan University as a move that is helping the law school adapt to the needs of students by providing more education opportunities. “It’s a continual and

LansingBusinessNews.com

MAN ON THE STREET

M AN on the STR E ET How do you keep up with changes in the law that affect you/the community? COMPIL ED BY K YL E D O W L I N G

“I mostly find out about laws through newspapers and colleagues.”

Brandon Steury

“I find out about laws that affect me by watching the news.”

Joel Everett

“I’m a probate Judge for Midland County. So, that’s how I learn about laws and such.”

Dorene Allen

“I learn about laws from the news or from word of mouth around the office.”

Dewayn Gray

“I follow the news, M Live, or LSJ. It’s an easy way to stay updated.”

Joe Manzella

“If it makes it to the paper, then I learn about it, otherwise I don’t.”

Kyle Dykstra

“I read the newspaper and that’s how I learn about it.”

Jim Hogan

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

M AY 2 0 1 5

CAMW!

LansingBusinessNews.com

GLBM LIST

Law Firm Companies

Name

Address

City

Abood Law Firm

46 E. Saginaw Hwy.

East Lansing

Bohnhoff and Mahoney

912 Centennial Way #320

St. Johns

The Clark Law Office

4121 Okemos Rd. #13

Okemos

Colpean and Associates

1640 Haslett Rd. #160

Haslett

Foster and Harmon

139 W. Lake Lansing Rd. #210

East Lansing

Foster Swift Collins & Smith

313 S. Washington Sq.

Lansing

Fraser Trebilcock

124 W. Allegan St. #1000

Lansing

Gallagher Law Firm

2408 Lake Lansing Rd.

Lansing

Gene F. Turnwald Law Office

4600 N. Grand River Ave.

Okemos

Grabel and Associates

120 N. Washington Sq.

Lansing

Hubbard Law Firm

5801 W. Michigan Ave.

Lansing

Jackson, Jackson and Hayes

120 E. Walker St.

St. Johns

Law Office of Heather Gilkey, PLLC

15851 Old U.S. 27 #314

Lansing

Loomis Law

124 W. Allegan St. #700

Lansing

Mallory, Lapka, Scott & Selin, PLLC

605 South Capitol Ave.

Lansing

Mike Dudley Law

2846 E. Grand River Ave.

East Lansing

Nichols Law Firm

3452 E. Lake Lansing Rd

East Lansing

Oade Stroud & Kleiman

200 Woodland Pass #D

East Lansing

Plunkett Cooney

325 E. Grand River Ave. #250

East Lansing

Savage Law

1483 Haslett Rd.

Haslett

Sinas Dramis Law Firm

3380 Pine Tree Rd.

Lansing

Williams Law Firm

411 W. Lake Lansing Rd.

East Lansing

Willingham and Cote

333 Albert Ave. #500

East Lansing

Witte Law Offices

119 E. Kalamazoo St.

Lansing

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

M AY 2 0 1 5

GLBM LIST

Each month, the Greater Lansing Business Monthly compiles a list relevant to the publication’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 law firm companies in the Lansing area in alphabetical order. To submit your company information for future GLBM lists, go to lansingbusinessnews.com/get-on-the-list. Areas of Practice

Date Established

Phone

Website

General

1956

(517) 332-5900

aboodlaw.com

General

1968

(517) 323-4410

bohnhoffmahoney.com

Personal Injury

1983

(517) 575-8564

theclarklawoffice.com

Insurance

1993

(517) 339-4500

colpeanlaw.com

General

2000

(517) 337-4600

fosterandharmon.com

General

1902

(517) 371-8100

fosterswift.com

General

1958

(517) 482-5800

fraserlawfirm.com

General

2005

(517) 853-1500

thegallagherlawfirm.com

Bankruptcy

1992

(517) 347-6700

gturnwald.com

Criminal Defense

1999

(800) 342-7896

grabellaw.com

General

1927

(517) 886-7176

hubbardlaw.com

Criminal Defense

1997

(989) 224-6734

2jacksonlawfirm.com

Real Estate, Estate Planning, Agriculture

2013

(517) 899-4612

n/a

General

1953

(517) 482-2400

loomislaw.com

General

2002

(517) 482-0222

mclpc.com

Disability Law

2012

(517) 332-7100

lansingdisabilityattorney.com

Drunk Driving Defense

2006

(517) 432-9000

nicholslawyers.com

General

1972

(517) 351-3550

osklaw.com

Business and Litigation

1913

(517) 333-6598

plunkettcooney.com

General

2009

(517) 515-5000

savagelawplc.com

Personal Injury, Family Law

1951

(517) 394-7500

sinasdramis.com

Criminal Defense

1978

(517) 337-8100

williamslawfirm.com

General

1963

(517) 351-6200

willinghamcote.com

General

1995

(517) 485-0070

wittelaw.com

LansingBusinessNews.com

REGIONAL ROUNDUP

Moving Metro Lansing Forward BY MAYOR VIRG BERN E RO

rogress usually comes in the form of small steps, rather than giant leaps, and progress on regionalism is no exception. As much as we try to push the ball forward and move metro Lansing toward a more regional approach on issues like economic development, public safety and other shared services, more often than not the awesome power of the status quo still gets in the way. That’s why it is important to celebrate the small victories, like the recent approval of the regional Trails Millage that will help support the maintenance and expansion of the award-winning Lansing River Trail. The Lansing River Trail truly is a regional asset; its user base is drawn from across the Lansing metro, and it deserves regional financial support so we can continue building connections that promote walking and biking across the region.

(GLVCB) and the Lansing Entertainment and Public Facilities Authority (LEPFA), Kudos to the Ingham County Board of WE COULD GRADUATE FROM which operates our splendid convention Commissioners for placing this initiative center in the heart of downtown Lansing. on the countywide ballot, and thanks to Conventions and a plethora of other events SMALL STEPS TO GIANT the voters of Ingham County for seeing the at the Lansing Center put heads in beds at LEAPS FORWARD AND GIVE value in a robust, well-maintained, regional hotels across the Lansing metro, generating network of trails and approving the millage millions of dollars annually in regional REAL MEANING TO THE IDEA economic activity. That makes the Lansing by an overwhelming margin. Center yet another regional asset that THAT AS A REGION WE ARE We have also made regional progress deserves regional financial support. The through the establishment of the Greater GLCVB and LEPFA have a joint marketing STRONGER TOGETHER. Lansing Taxi Authority (GLTA) between agreement that helps promote metro the cities of Lansing and East Lansing. The Lansing as a great place to visit, and that is GLTA is working to establish uniform regional regulations for yet another step forward for regionalism. taxi companies, as well as ride-sharing companies like Uber, all of which routinely operate across municipal boundaries. Although these small steps represent regional progress, A consistent set of regulations across metro Lansing is good we should keep in mind that the people of metro Lansing for these businesses and will help ensure a safe, high-quality are way ahead of the politicians in their support for experience for their customers. regionalism. Area residents already practice regionalism on a daily basis when they cross jurisdictional boundaries Delta Township recently voted to join the GLTA, and that to and from their homes, places of work and shopping and represents yet another positive step forward for regionalism. recreation destinations. I look forward to other jurisdictions in the region getting on board. Elected leaders across the Lansing metro would be wise to think less like parochial potentates and more like the citizens they Another promising regional collaboration is the partnership represent, who are far less concerned than the politicians about between the Greater Lansing Convention and Visitors Bureau where the formal jurisdictional boundaries begin and end. 30

IF THAT WERE TO HAPPEN,

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If that were to happen, we could graduate from small steps to giant leaps forward and give real meaning to the idea that as a region we are stronger together. In order to become one of the great Midwestern capital cities, we have to engender a spirit of regionalism more in line with the cities of Columbus, Indianapolis and Madison.

On your side, by your side. Good law firms make the right things happen for clients. We take that idea to the limit by offering powerful legal services in more than 70 practice areas: from antitrust to tax litigation, bankruptcy to probate, commercial litigation to utility law and everything in between. We’ve been on your side for 130 years and counting.

We can do it if we can muster the political will to make it happen.

Got a problem? Give us a call.

Lansing Mayor Virg Bernero was re-elected to his third term in 2013 and is now serving his ninth year as Lansing’s chief executive officer. Bernero previously served as a county commissioner, state representative and state senator representing Michigan’s capital city. He is married to Teri Bernero and lives in Lansing.

fraserlawfirm.com 517.482.5800

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R E A L E S TAT E

Commercial Real Estate Broker Liens

What You Should Know BY TRICIA FOS TER

he Michigan Commercial Real Estate Broker’s Lien Act is available to protect brokerage commissions on commercial transactions in which licensed services are provided and is relatively new to the State of Michigan. In the traditional sales transaction, a lien must be recorded before the conveyance takes place. Common practice has brokerage commissions being paid at closing for sale transactions. This, along with the involvement of title companies and lenders with their own checks and balances, minimizes the need for commercial real estate brokers to lien properties for potentially unpaid commissions on sale transactions. In the case of a lease transaction, a claim of lien must be recorded within 60 days after the lease is signed. Only Michigan licensed brokers, who are the broker of record, can file a lien, which is limited to the amount of compensation agreed upon between the landlord and the broker. A cooperating broker working through a listing broker’s offer of cooperation does not have lien rights.

•

Provide a copy of that lien via registered or certified mail to both the owner of the real estate and the party who signed the commission agreement within 10 days of recording the lien.

•

Release the lien if the commission is escrowed.

•

File a lawsuit to enforce the lien within one year after a lien is recorded or the lien is lost (in most instances).

•

Enforce the lien within 30 days upon receipt of landlord’s notice to broker demanding that the broker file suit to enforce the lien or lose its lien rights. •

Record a release not later than five days after receipt of a demand notice to do so from the landlord once a lien is no longer valid. Finally, the lien law is only available on commercial real estate. Commercial real estate does not include: Real estate zoned for single-family use where no building or structure is located. •

There must be a written agreement between the landlord and the brokerage firm signed after October 5, 2010, the effective date of the act. The agreement must identify the services provided and the fee schedule. There are special rules governing liens in connection with option agreements, installment payments for commissions, buyer’s agency agreements and lease amendments and extensions. There are also procedures governing lien filing, release and enforcement. The broker must:

• Real estate where four or fewer residential units are located. • Real estate on which more than four residential units are located, if the units are conveyed on a unit-by-unit basis.

The Commercial Real Estate Broker Lien Act is a powerful tool that, when used properly, enables licensed brokers to protect and pursue earned compensation that may be at risk on commercial transactions. However, it is not ideal since a lien must be filed within 60 days after a lease is signed for the lien to be valid. Often in lease transactions, the commission due and payable may extend beyond this 60 day period.

•

Use the statutorily‐mandated forms and attach the written listing or commission agreement signed after October 5, 2010.

•

Serve the “owner of record,” which may not be the signer of the listing or commission agreement.

This article is not intended as a substitute for legal representation.

•

Record the lien in the county where the property is located.

Tricia Foster, CPM®, ACoM® is Senior Managing Director and Chief Operating Officer at CBRE|Martin.

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

M AY 2 0 1 5

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BUSINESS CALENDAR

May 2015 BUSINESS EVENTS

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CONNECTIONS & COFFEE, LANSING. Spend your morning with GLBM for Connections & Coffee. Enjoy some networking, bagels, coffee and a brief tenminute presentation. Connections & Coffee will be held at the University Club of MSU, located at 3435 Forest Road, from 8 to 9 a.m. For more information, visit lansingbusinessnews.com or call (517) 203-3333.

80S FLASHBACK FUNDRAISER, LANSING. Capital Area Women’s LifeStyle Magazine is proud to host the fifth annual 80s Flashback Fundraiser. We’re ready to rat out our hair and bust a move like the good ol’ days. Enjoy an evening with CAWLM as your remember the bold colors, big hair, scrunchies, leg warmers and acid washed denim skirts. Attendees will enjoy a live performance by Starfarm, an 80s idol contest, 80s memorabilia, CAWLM’s “Caring About Women Locally” award, great food and beverages and the opportunity to have your hair “eightified.” Join us from 7 p.m. to midnight at the University Club of MSU, located at 3435 Forest Road. Tickets in advance are $30/person or $50/couple and $35/person or $60/ couple on the day of the event. This year’s fundraiser will benefit the Girl Scouts Heart of Michigan. Bust out your hairspray, give a little love and help support local girls. Call (517) 203-3333, email info@cawlm.com or visit cawlm.com.

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9TH ANNUAL EMPTY PLATE STROLLING DINNER & AUCTION, EAST LANSING. Join the Greater Lansing Food Bank for their 9th Annual Empty Plate Strolling Dinner and Auction. Enjoy a casual strolling dinner featuring some of the area’s top chefs from The State Room, Bordeaux, Morton’s Fine Catering, Spartan Signature Catering, Troppo, Tavern on the Square, Peppino’s Sports Grille and University Club of MSU. Guests will receive a commemorative “empty plate” decorated by local school children and can participate in both a live and silent auction. Tickets are $125/ person. All proceeds will benefit the Greater Lansing Food Bank. This year’s event will be held in the Big Ten Room of the Kellogg Hotel and Conference Center beginning at 5:30 p.m. For more information, email sarah@greaterlansingfoodbank.org. 34

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Steve Hershfield, Dan Wilkinson and Luan Nguyen attending a Grand River Connection event located at the Jackson Zone.

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BUILDING WINNING TEAMS, EAST LANSING. Join some of MSU’s all-star coaches, such as Tom Izzo and Suzy Merchant, and world-renowned management faculty for Building Winning Teams. In this dynamic and unique three-day learning experience you will learn how to promote accountability and efficiency, encourage creativity and innovation, enhance current skills and develop new ones and much more. This session will be held at MSU’s James B. Henry Center for Executive Development. The cost to attend this incredible session is $4495/person and $3495/each additional person from the same organization. For more information or to register, visit broad.msu.edu/bwt, email stmarie@broad.msu.edu or call (517) 353-9711.

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6TH ANNUAL DAPPER DADS CHALLENGE & FASHION SHOW, LANSING. Join the Sparrow Foundation’s Women Working Wonders (W3) for the 6th Annual Dapper Dads Challenge and Fashion Show. Community members can go online until June 10 at 3 p.m., and vote for a winner from among more than 40 participating mid-Michigan business leaders and professionals. The challenge concludes with the “Dapper Dads Fashion Show” at Kositchek’s in downtown Lansing on June 11, where this year’s top Dapper Dad will be chosen. A VIP reception and reserved fashion show seating will begin at 5:30 p.m. Tickets are $60/person or general admission for the fashion show only at 6:30 p.m. is $30/person. Both include wine and hors d’oeuvres. Proceeds will benefit women’s healthcare in our region. To buy tickets, cast ballots and find the complete list of this year’s models, visit SparrowFoundation.org/DapperDads.

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BIG BANG-QUET CHALLENGE AWARDS $80,245 FOR LOCAL CHARITIES, CARE FREE MEDICAL AND DENTAL CENTER WINS GRAND PRIZE

At the Final Voting & Reveal Reception on Wednesday, March 25, the Care Free Medical and Dental Center was awarded the grand prize — a $10,000 credit toward a fundraising event at the University Club, plus $10,030 earned from their votes. In second place was Origami Brain Injury Rehabilitation Center, which received a $5,000 credit toward a fundraising event held at the University Club and $8,032.50 earned from their votes. The East Lansing Rotary Foundation, in support of the Weekend Survival Kits program received the award for the most individual voters, earning them a $5,000 event credit at the Club and $3,884.50

PHOTO PROV IDED

21 local charities were awarded a total of $80,245 from the University Club of MSU’s 2015 Big Bang-quet Challenge, cosponsored by the MSU Federal Credit Union and the Capital Region Community Foundation. The public “voted” for their favorite charities at universityclubofmsu.org with $5 tax-deductible donations to the Capital Region Community Foundation from Feb 9 through March 24, as the charities competed for three top prizes.

from their votes. A full list of participants and voting results can be found at universityclubofmsu.org/theclubwithaheart. Every participating charity was a winner, receiving 85 percent of funds raised through voting. Overall, 12,049 votes were cast, raising a total of $60,245 for the 21 participants and the Capital Region Community Foundation, plus $20,000 in prizes.

Sparrow Health Classic Exceptional Golf to Support

Extraordinary

Wednesday, June 17, 12:30 shotgun start at Hawk Hollow & Eagle Eye Golf Courses The Sparrow Health Classic offers an unforgettable day of golf. All proceeds benefit the health and care of our community. Join us.

Care

» Serious golfers will love the challenges offered by some of the toughest holes in the region.

» Recreational golfers will enjoy the scramble format, the beautifully manicured greens and the fun gifts for every golfer.

» Not a golfer? Sign up for the 18-hole real-grass putting course at Little Hawk, then join the golfers for dinner following play. No matter how you choose to participate, you’re helping us continue to provide the best, most advanced healthcare services available to the men, women and children who come to Sparrow for care each day. Generously presented by

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For more information, visit SparrowFoundation.org. Questions? Call 517.364.3621.

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LEAP ANNOUNCES RE-CONFIGURATION OF NEW ECONOMY DIVISION

training under the corporate marketing director and assists other stores with their planning and campaigns.

The Lansing Economic Area Partnership (LEAP) is pleased to announce that Tony Willis was moved from Manager to Director of LEAP’s reconfigured New Economy Willis Division. Quin Stinchfield will be the Manager of Business Incubation.

Store Assistant Managers Ashley Felman and Nick Owens have added the title of Corporate Training Manager to their positions. They spend their time travelling to other Tony Sacco’s locations for training

and support. Felman recently completed the corporate Front-of-House corporate training manuals and will be working with Owens to write the Back-of-House manuals. The team joins Co-Owners and CEOs Chuck Senatore and George Kurajian; Regional Director of Operations, COO and President Julian Copsey, Director of Operations Brian

Willis will run the region’s entrepreneurial system, the RING, while Stinchfield will operate the TIC and Runway incubators as well as manage their programming and continue the exciting expansion of incubators throughout the region. Additionally, as part of LEAP’s organizational re-configuration, Karl Dorshimer has been promoted to the Director of the Business Development division while COO Steve Willobee had his duties expanded so that, in addition to continuing his leadership of Business Development, Willobee will have a more hands on, day-to-day management relationship to the New Economy Division. LEAP is determined to take the region’s entrepreneurial and business startup initiatives to a new, national level of prominence and success, thus LEAP will be introducing an aggressive series of new programs designed to increase likelihood of startup businesses and entrepreneurial culture growing throughout the Lansing region. TONY SACCOS COAL OVEN PIZZA HIRES NEW STAFF Tony Sacco’s Coal Oven Pizza is proud to welcome several new members to their management team. The Eastwood Heights location recently celebrated its third anniversary and is adding local staff to accommodate for growth. Josh Parker was hired as Assistant Store Manager and Marketing Bambino. He is responsible for store operations, vendor relations, customer service, community outreach and special events. He is currently LansingBusinessNews.com

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O’Hara, National Marketing Director Cindy Kangas and Lansing Store General Manager Nick Neveau.

HORIZON ANNOUNCES BARB REAMER AS MORTGAGE LOAN ORIGINATOR

For more information and to follow our progress visit tonysaccos.com or Tony Sacco’s Lansing on Facebook.

Craig M. Dwight, Chairman and Chief Executive Officer of Horizon Bank, N.A., is pleased to announce the addition of Barb Reamer as a new Mortgage Loan Originator located in the East Lansing office at 1600 Abbot Road.

Reamer has more than 25 years of experience in banking and is a member of the American Society of Training & Development and the Home Builders Association of Greater Reamer Lansing Professional Women in Building Council. She is involved with the Capital Area Health Alliance and Women Working Wonders (W3) — Sparrow Foundation. Horizon Bancorp is a locally owned, independent, commercial bank holding company serving Northern and Central Indiana and Southwest and Central Michigan through its commercial banking subsidiary Horizon Bank, NA. Horizon Bancorp may be reached online at horizonbank.com.

seeking your success Now is the time to think about where you are going. It is time to choose an investment partner that will work with you and for you every step of the way. An investment advisor tied to the success of your wealth, not to a commission. We develop individually designed long-term strategies for your entire financial, tax, estate and business matters. We believe in data and statistical methods in our approach to managing assets as there is no substitute for smart and efficient decision-making — whether it applies to investments, estate planning or taxes. Nationally recognized investment firm For the fifth straight year we have been named a Top CPA Wealth Advisory Firm in the Nation by Accounting Today magazine. We are one of only five such investment advisory firms in Michigan. SienaInvestor.com • 517.627.1412 11973 Sweetwater Drive, Grand Ledge, MI 48837 Tel: 517.627.1412

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Two Men and a Truck was awarded the Partnership Award and Rollin Dart received the Robert Drake Citizenship Award at Highfields’ Annual Awards Meeting on Wednesday, April 29 in East Lansing. Two Men and a Truck has been a dedicated supporter of Highfields for 16 years. Recently, the company donated furniture to Highfields for its new office in Lansing. Each year, Highfields gives the Partnership Award to an organization which helps fulfill Highfields’ mission to strengthen the lives, relationships and communities of children, youth and families. Past recipients include Christman Constructors, Douglas Steel Fabricating Corp., General Motors Corp. and the Granger Foundation. Rollin Dart has been a part of Highfields since its conception in 1954. A good friend of Highfields’ founder, Judge Robert Drake said, “Dart has helped Highfields through tough times. Highfields would not be the organization it is today without his support.” The Robert Drake Citizenship Award is given annually to a person who

TWO MEN AND A TRUCK, ROLLIN DART RECOGNIZED AT HIGHFIELDS AWARDS DINNER

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CAPITAL AREA HUMANE SOCIETY RAISES $1 MILLION TO EXPAND SHELTER

This $1.9 million campaign is the first of two phases of a renovation and expansion project totaling $3.9 million. Eventually, a new Clinical Center will be added, including quarantine areas for better managing wellness in the shelter and modernized housing areas for canines.

P HOTO B Y MIK E FR A NCE

The Capital Area Humane Society (CAHS) recently announced that it has raised $1 million as part of its $1.9 million New Home, New Hope campaign. The fundraising effort will help to renovate and expand its current shelter to include a new Animal Intake area that will help to expand housing for animals being held in cruelty investigations and animals needing behavioral enrichment. This will also help to create a less stressful space for felines and small animals. To date, the fundraising effort has garnered support from nearly 110 community donors, individuals, businesses and foundations. For more information about the New Home, New Hope campaign and to donate, visit CAHSCampaign.org.

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demonstrates commitment and leadership in bringing people together, strengthening communities and improving lives. Past recipients include Larry and Candy Parker, Kellie Dean, Duane Vernon, Derwood Boyd and Andy Sheets. Highfields is a human services nonprofit organization serving 11 Michigan counties through their residential treatment program, community services and educational services. More information about Highfields can be found at highfields.org. GREENSTONE LAUNCHES NEW CUSTOMER IT SERVICES PROGRAM FOR FARMERS Customers of GreenStone Farm Credit Services can now take advantage of a new technology service program. The Customer IT Services program includes support for hardware and software as well as technology

consulting for the specific needs of farming operations. “The idea for this new service came from feedback we received from our customers,” said Steve Junglas, GreenStone chief information officer. “GreenStone has already built trusted financial relationships with our members. We are excited to offer the same level of support to our customers for their technology needs as well.” GreenStone’s technology team services several other Farm Credit associations in addition to its 500 employees. Offering support to customers in rural areas — where secure and knowledgeable service is often hard to find — is just one more way GreenStone is providing value to its customers. “We understand that technology is critical to conducting business today in agriculture,” said Jim Maratta, GreenStone client support analyst and lead technician

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for this service. “Our proactive approach will help customers discover potential issues before they become an obstacle to business operations.” At this time, the IT service program is available to GreenStone customers in the Charlotte, Corunna, East Lansing, Ionia, Hastings, Howell, Mason and St. Johns branches. For more information, visit greenstonefcs.com. About GreenStone Farm Credit ServicesGreenStone Farm Credit Services, based in East Lansing, Michigan, is Michigan and northeast Wisconsin’s largest agricultural lender and the country’s sixth largest association in the Farm Credit System. A member-owned cooperative, GreenStone owns and manages approximately $7.3 billion in assets and serves more than 23,000 members with 36 branch locations in Michigan and northeast Wisconsin. More information on GreenStone can be found at greenstonefcs.com.

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THE WILLOWS AT OKEMOS ANNOUNCES KEITH FISHER AS EXECUTIVE DIRECTOR The Willows at Okemos, a provider of senior living and health services, is happy to announce Keith Fisher, NHA, as the new Executive Director. Fisher has a bachelor’s degree in Health Science from Western Illinois University. He has more than 16 years of longterm care experience in skilled nursing facility Fisher management. Fisher also has several years of experience as a Public Health Inspector. He is married with one daughter and calls Dewitt home. The Willows at Okemos’ senior living services are delivered by staff specially trained to honor and enhance the lives of our residents through compassion and commitment to exceeding customer expectations. To learn more about The Willows at Okemos, please visit willowsatokemos.com or call (517) 349-3600. TOMIE RAINES AGENTS AWARDED QUALITY SERVICE GOLD AND PLATINUM STATUS Thirty-two Tomie Raines, Inc. real estate agents were awarded Quality Service Certified gold and platinum status in recognition of exceptional service satisfaction, measured and compiled for 2015 by Leading Research Corporation. Twenty-six real estate agents were awarded platinum status, while another six agents earned gold status. “We understand how important customer service is to prospective homebuyers,” says Debbie Barnett, president and owner of Tomie Raines, Inc. “Our company prides itself on our commitment to customer service. These awards are a testament to our agents’ pledge to uphold the highest customer service standards.”

All Tomie Raines, Inc. agents are QSC certified and detailed results of the agents’ customer surveys are posted online at tomieraines.com, QualityCertified.org and RatedAgent.com. The company as a whole has a customer satisfaction rating of 96.5 percent. Recently, Tomie Raines, Inc. also launched tools on its website to allow individuals to search sold properties as well as set up a Home Finder Pro profile to

receive email alerts when a home meeting certain criteria hits the real estate market. Tomie Raines, Inc. has been a leader in midMichigan real estate since 1977 and is the region’s largest independent real estate company. It is the only Quality Service Certified company in mid-Michigan. For more information, visit tomieraines.com.

CMU’s 11 local centers ree s h t l across Michigan and n al ampu r a E online deliver the quality degrees C bal o l you need and the Attend ’s G y flexibility you t i s r any of the events want. ive n U below and receive a code to an

hig c waive the $50 application fee!* i M l tra * Application must be received between 5/12/2015 and Cen 5/29/2015. Applies only to Global Campus and online admissions

except DHA. Does not apply to admission fees to the Mount Pleasant Campus.

Tour Tuesday 5/12/2015 11 a.m. to 7 p.m. Visit any of our 11 centers across Michigan.

Webinar Wednesday 5/13/2015 7 to 8 p.m.

Twitter Thursday 5/14/2015 7 to 8 p.m.

Not able to visit a center. Join in the live Webinar.

Join the conversation by following #CMUGlobal and using it in your tweets.

RSVP today! 877-268-4636  CMUglobal@cmich.edu  global.cmich.edu/CMU3 Individuals with disabilities who need accommodation should call 800-950-1144, ext. 3018 at least one week before the event. CMU is an AA/EO institution (see cmich.edu/OCRIE). cmich.edu/GlobalCampus 41824 4/15

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MID-MICHIGAN MECHANICAL CONTRACTORS ASSOCIATION AWARDED 2015 LOCAL ASSOCIATION OF THE YEAR The Mid-Michigan Mechanical Contractors Association (3MCA) received the Michigan Plumbing & Mechanical Contractors Association (MPMCA) Local Association of the Year Award on March

24, 2015. Every year, the MPMCA honors a local association for their outstanding service and dedication toward their membership, their community, the industry and the support of the MPMCA. 3MCA President Larry Gunthorpe (Gunthorpe Plumbing & Heating, Inc., East Lansing, Mich.) has been involved

with the Mechanical Contractors Association of America (MCAA) Technical Committee and is presently a member of the MCAA Education Committee. 3MCA’s involvement with their community includes the Annual Doug Griffith Breakfast, the Sparrow Foundation Children’s Telethon and the Michigan SkillsUSA Plumbing Contest. 3MCA is also involved with the Michigan Apprenticeship Steering Committee, Inc. (MASCI), the Great Lakes Peer Group, the Michigan MCA/Pipe Trades and other various groups. The MPMCA is dedicated to the promotion, advancement, education and training of the industry for the protection of our environment and the health, safety, and comfort of our citizens. LCC AWARDED FOR FINANCIAL EXCELLENCE FROM NATIONAL ASSOCIATION

Lansing Community College was recently awarded the Certificate of Achievement in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA), based on the College’s Comprehensive Annual Financial Report.

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“These awards showcase the financial integrity of the College,” said LCC President, Dr. Brent Knight. “It speaks highly of our Financial Division and we are honored to receive this recognition from the GFOA.” The Report was judged by a panel to meet the high standards of the program, ‹including demonstrating a “spirit of full disclosure.”

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The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting and represents a significant accomplishment by LCC.

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In February, LCC’s Financial Services Division was also awarded the Distinguished Budget Presentation Award in recognition of the division’s budget presentation. In a letter to President Brent Knight, GFOA’s Stephen J. Gauthier wrote that: Through your example, we hope that other entities will be encouraged to achieve excellence in budgeting. The GFOA is a nonprofit professional association that offers benchmarking and independent analysis of public accounting practices and financial reporting. For more information about GFOA, please visit gfoa.org. LCC’s financial information, including the Budget Presentation and Annual Financial Reports, can be found at lcc.edu/finservices/.

company’s campaign benefits thousands of programs that depend upon local United Way chapters for funding across the country. Nationally, the kindness of LyondellBasell and its employees resulted in a total contribution of more than $2.6 million to United Way agencies during the 2014-15 campaign.

TOP ADVISOR EARNS PRESTIGIOUS CLUB LEVEL DISTINCTION Sal Durso, of The Centennial Group & The Principal Financial Group, has announced that one member of his firm, Mike Anderson, recently qualified for Principal Financial Group’s prestigious Executive Cabinet award.

Lansing Community College is Michigan’s third largest community college with nearly 17,000 students attending each year. LCC offers courses in general education for those interested in transferring to a university, career and workforce development, developmental education and personal enrichment. To meet the professional development and training needs of regional employees, the college offers customized programs for credit, non-credit and continuing education. The University Center at LCC offers students the opportunity to earn bachelor’s and master’s degrees from six partner universities on the downtown LCC campus. For more information, visit lcc.edu. LYONDELLBASELL TEAMS WITH UNITED WAY FOR SUCCESSFUL CAMPAIGN LyondellBasell and its employees from the Lansing Business and Technical Center raised more than $12,900 for Capital Area United Way during its recently completed 2014-15 campaign, including more than $6,400 in employee contributions along with the company match. Supporting the United Way is an integral part of LyondellBasell’s commitment of giving back to the communities in which it operates. Every year, money raised by the

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This Principal Financial Group award is an exclusive level of distinction given by the company. Career producers with The Principal work with growing businesses, their executives and employees

on identifying their financial needs. These needs are met with financial products and services that include the full range of financial services products offered by the Principal Financial Group. The Executive Cabinet award recognizes producers for their outstanding achievements and high production.

DESIGN Whether you’re looking to build your brand image from the ground up or you have a one-off design project for us, our professional and award-winning team of graphic designers allows you to keep your mind focused on your business.

PRINT Our digital printing method eliminates multiple steps in the printing process saving you time and money. Our inhouse digital printing facility offers both small and large format capabilities, from small business cards to large trade show displays and signage.

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For more news and insights from The Principal, connect with us on Twitter at twitter.com/ThePrincipal. About the Principal Financial GroupThe Principal Financial Group (The Principal) is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500, the Principal Financial Group has $483.2 billion in assets under management and serves some 19.4 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit principal.com. GRACE BOUTIQUE WINS BEST SMALL BUSINESS AWARD Grace Boutique is one of eleven companies in the state of Michigan that has been selected to receive the Michigan Small Business Development Center’s (MISBDC) Best Small Business Award. These companies were chosen from more than 5,200 small businesses that the Michigan SBDC provided with confidential counseling in 2014. The Best Small Business award recipients were identified based on their success in creating jobs, increasing sales, improving their business strategy and their involvement with the Michigan SBDC. The recipients will be honored at an awards ceremony on May 13, 2015, in Mt. Pleasant, Mich. at the MI-SBDC Annual Network Awards Grace is a boutique for those who love timeless vintage style, but want a new twist and the quality of a new piece. To learn more about Grace Boutique visit oldtowngrace.com.

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Producers who qualify for this distinction are part of the very best producers nationwide.

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Comprehensive Services for any size business from FirstMerit Increased demand for eco-friendly solvents meant exponential growth for Lisa— and a conversation with FirstMerit Bank. With their Treasury Management, Payroll, International Services and more, Lisa not only kept up with increasing demand, but also created a new model for order fulfillment. Now, thanks to the help of FirstMerit, Lisa’s business no longer qualifies as “small.”

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