MiBiz March 15, 2021 print edition by MiBiz

Lawsuit claims restrictive zoning along Rockford riverfront

Upjohn economist: $1.9T stimulus to speed postpandemic recovery

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MARCH 15, 2021 • VOL. 33/NO. 11 • $3.00

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GRAM raises profile with vaccine contract, eyes growth

Michigan cities face $250M gap from lower income taxes By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com

n Michigan’s 24 cities with local income taxes, work from home restrictions this past year that are still largely in place for office workers have caused multi-million-dollar budget gaps. The cities that have adopted local income taxes — including Grand Rapids, Walker, Muskegon, Muskegon Heights, Ionia, Benton Harbor, Big Rapids and Battle Creek — collect revenue from residents and non-residents who work in the city. Under state law, cities can’t withhold income taxes from nonresidents if they weren’t working in the city. The budget shortfalls for cities have mounted over the past year, while local officials have no clear end in sight as the workfrom-home shift is expected to play an ongoing role post-pandemic. Cities with income taxes may have to adjust for lower income tax revenues for the foreseeable future. “Every community as they develop a budget will have to look at factors that create their revenues,” said Chris Hackbart, director of state and federal affairs for the Michigan Municipal League. “There’s no question there’s been changes in the workplace. The question is: How long term are they?” Grand Rapids is forecasting an income tax shortfall of $15 million to $20 million in the current fiscal year that ends on June 30. Grand Rapids CFO Molly Clarin doesn’t expect income tax revenue to return to prepandemic levels until the 2026 fiscal year. “It’s a loss of approximately $45 million” over the next five years, Clarin told MiBiz. The city of Walker is forecasting a roughly $2 million shortfall from an $18 million budget this fiscal year, said Mayor Gary Carey. Its major employer affected by the office workplace closures, supercenter retailer Meijer Inc., has more than 2,000 employees at its headquarters in the city, Carey said. See INCOME TAX on page 11

Perrigo seeks continuity with 3-year CEO contract extension PAGE 14

By MARK SANCHEZ | MiBiz msanchez@mibiz.com GRAND RAPIDS — Producing Johnson & Johnson’s COVID-19 vaccine propels Grand River Aseptic Manufacturing Inc.’s growth while giving business advocates a showpiece when promoting the region. The Grand Rapids Area Chamber of Commerce has made Grand River Aseptic Manufacturing (GRAM) a centerpiece of an upcoming campaign on talent attraction and retention. In efforts to lure business investments, The Right Place Inc. touts the company to site selectors nationally and even internationally in marketing West Michigan’s life sciences cluster and its biotech talent and research capabilities. The economic development organization typically prepares an “extra marketing piece” to highlight local success stories as a way to See GRAM EXPANSION on page 12

ILLUSTRATION BY KAYLEE VAN TUINEN

Limited availability remains barrier to onsite vaccination clinics for employers By MARK SANCHEZ | MiBiz msanchez@mibiz.com

s pharmaceutical companies ramp up production and COVID-19 vaccines become more widely available, employers are increasingly asking whether employees can get vaccinated at work. The answer appears to vary among different county health departments. Kent County has been examining the idea for employers in certain

sectors of the economy, while Ottawa County this month piloted onsite clinics for two large employers. The larger health systems around Grand Rapids also are interested in doing onsite vaccinations for employers, although for now they are focused on operating and administering doses at vaccine clinics, including the mass West Michigan Vaccine Clinic at DeVos Place in downtown Grand Rapids. The limited availability of doses also remains a key barrier to directly approaching employers about vaccinations, officials say.

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Real Estate: Office SEE PAGE 8

“At this time, Spectrum Health is focused on providing vaccinations through our established vaccine clinics, collaboratives and community vaccine clinics. We are open to exploring options, however, we are limited by current vaccine supplies,” Chad Tuttle, senior vice president of hospital operations for Spectrum Health West Michigan, said in a statement to MiBiz. Spectrum Health partners with Mercy Health and the Kent County Health Department to operate the West Michigan Vaccine Clinic at DeVos See VACCINES EMPLOYERS on page 7

Coming Soon!

UTILITIES & ENERGY MARCH 29, 2021 We’ll dig into the local energy business with a look at some of the investments and projects that utilities are making around the region. We’ll also chronicle how the energy needs of municipalities, manufacturers and other organizations are changing, and dip into energy efficient transportation. Don’t wait to be in this issue! Contact us by Wednesday, March 17 to advertise.

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Lawsuit alleges restrictive zoning along downtown Rockford riverfront By KATE CARLSON | MiBiz kcarlson@mibiz.com ROCKFORD — The owner of prime downtown property along the Rogue River is suing city officials over “unlawful, discriminatory, unreasonable and confiscatory zoning practices” that are allegedly preventing successful developments there. The case involves restrictions tied to a former city-owned property under an agreement that’s meant to guide future development in the pedestrian-friendly area. At least one real estate attorney calls it an atypical situation that raises questions about whether the deed restrictions on the property — which he called “a Caldon little unusual” — are enforceable. DJT Properties LLC — which is registered to Dan Trierweiler — bought the parcel at 8 E. Bridge St. NE in 2010 for $2.4 million from Promenade of Rockford LLC, which is owned by Andrew Gremel, managing principal of local insurance firm The Gremel Group. Gremel was also a developer and partner in Red’s on the River, a restaurant formerly on the property. Promenade of Rockford had purchased the property in 2005 from the city, which added use restrictions to the deed and rezoned the property from C-2 to a planned unit development (PUD) as part of the property sale. The city, its Planning Commission and City Council are named in the suit. “It’s not your typical PUD situation,” said David Caldon, a partner with Varnum LLP’s real estate division who has experience working with municipalities and developers on zoning cases. Caldon reviewed the suit before speaking with MiBiz. “It’s really more about the deed restrictions and if those are enforceable.” Since Trierweiler’s firm purchased the building, two well-established restaurant groups have operated in the space. However, both relocated shortly after, with at least one citing the property’s restricted uses and inadequate parking.

The property includes the 5,500-square-foot vacant restaurant space on the ground floor, as well as the vacant 1,338 square feet of additional space for another tenant. Flavors on the Promenade ice cream shop operates in a smaller retail space, and four of the 15 spaces on the second floor are currently occupied. The property was shown 20 times in 2020 that resulted in three offers to lease, but none of the proposed uses were allowed under the city’s “Promenade PUD” tied to the property, the Feb. 25 lawsuit claims. The lawsuit’s 10 counts include violating the city’s zoning ordinance and the Michigan Zoning Enabling Act; a void and unenforceable PUD; and an unenforceable restrictive covenant. DJT asks the court to declare the PUD unenforceable and to revert the property to its original zoning. The company also seeks “monetary damages for the periods during which the zoning operated as a taking,” along with attorney fees and damages. In its response, the city claims DJT was “fully aware” of the property restrictions upon purchase. It denies key allegations in the lawsuit, including that the property has been singled out with exclusionary zoning and that city officials have subjectively resisted changes to the property restrictions. The city also denies that it violated its own zoning ordinance, explaining that “ordinary terms and provisions of the zoning ordinance did not apply” because of the deed restrictions on the property. The city also rejects claims that the restrictions violate state and federal law. DJT Properties is being represented by Warner Norcorss + Judd LLP, while the city is represented by Plunkett Cooney P.C. Attorneys involved with the case at both firms could not be reached for comment.

‘A little unusual’ Municipalities commonly use deed restrictions to try to get some kind of public benefit for land when they sell it, Caldon explained, and that the municipality wants it developed in a certain way. The city’s PUD is specific and includes restrictions that only allow first-floor restaurants that are sit-down, serve alcoholic beverages by the glass and prepare most

BIZ BRIEFS A recap of recent stories from MiBiz.com.

Sewer relocation starting next month to boost Market Ave. redevelopment

The Grand Rapids City Commission approved the first phase of a trunk sewer relocation project that will allow for redevelopment along the city’s Market Avenue SW corridor. The project will clear the way for redevelopment of t he 201 Market Ave. SW site where an outdoor amphitheater and other amenities are planned. Kentwoodbased Kamminga & Roodvoets Inc. earned the bid for the first phase of the $8 million sewer relocation project, which is expected to start in April and be completed by spring 2022. “We are thrilled to see the sewer relocation project kick-off as it really does fuel the subsequent greater redevelopment plans for the riverfront,” said City Engineer Tim Burkman. Visit www.mibiz.com

The full trunk sewer relocation project involves the area along the Grand River and Market Avenue SW between Wealthy Street SW and West Fulton Street. The City Commission will consider a separate contract this spring for the second phase.

State distributes first $10M in recreational cannabis taxes to cities

State officials are releasing nearly $10 million for more than 100 municipalities across the state that have allowed recreational m a r iju a n a d i spen s a r ie s a nd microbusinesses. It’s the first tax revenue being distributed to local governments that allow recreational cannabis businesses under the Michigan Regulation and Taxation of Marijuana Act, which was approved by voters in 2018. Thirty-eight cities, seven villages, 21 townships and 38 counties

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The property owner of 8 E. Bridge St. NE in downtown Rockford is suing the city over restrictions that are allegedly blocking development. PHOTO BY JOE BOOMGAARD menu items onsite and from scratch using fresh ingredients, according to the lawsuit. Additionally, the PUD prohibits first-floor retailers from selling tobacco, tattoo or piercing services, pornographic materials, lingerie, secondhand items, and candles and incense as the main retail product. It also prohibits grocery stores, offices, dry cleaners, pharmacies, banks, convenience stores, beauty stores or spas, buffet-style restaurants, adult book stores, and card readers from operating there. Caldon said the restrictions in the PUD for the restaurant are “a little unusual” in their specificity of what kind of restaurant can operate in the space. While the restrictions may have served a public benefit when put in place, DJT alleges that they have since driven businesses away and blocked out new ones. Red’s on the River formerly operated in the groundfloor space when the building was purchased by DJT Properties. The restaurant, owned by Redwater Restaurant Group LLC, left in March 2016 and moved to Thousand Oaks Golf Club. The restaurant group at the time cited building constraints and limited parking. In 2017, Essence Restaurant Group LLC expanded its Green Well restaurant concept to the space before rebranding the restaurant as Rockford Riverside Grille. It then again changed to Riverside Grille Banquets & Events before ultimately deciding to not renew its lease. The space has been vacant since 2018 because of the restrictive PUD, the lawsuit alleges.

started receiving payments this month from a state fund that — for fiscal year 2020 — includes roughly $28,000 for each retail store and microbusiness allowed to operate as of Sept. 30, 2020.

MLCC launches new online ordering system

T he Michigan Liquor Control Commission took measures last week to streamline the ordering process for its 14,000 liquor licensees across the state. The MLCC launched its new Online Liquor Ordering (OLO) system, which is designed to cut down the time and effort associated with the current ordering process that has been in place for decades. While the old system required licensees to input the code and quantity of each liquor they wanted to order, the new OLO system provides a search function where users are able to search products by name or type. “There was no search functionality (with the old system) or anything like that,” Rishi Makkar, manager at Rishi’s International Beverage in Grand Rapids, told MiBiz. “You had to know what you wanted.”

Biz owners push for loosened restrictions on indoor banquet, event centers

Owners of indoor event centers are urging state officials to expand capacity limitations and for a clearer reopening timeline as key COVID-19 metrics continue to decline and vaccines become more widely available. West Michigan-based venue owners — along with the Grand Rapids Area Chamber of Commerce — are leading a statewide effort asking state officials for “immediate guidance” on reopening event venues. Current Michigan Department of Health and Human Services guidelines prohibit indoor weddings if they exceed a total of 25 people — a restriction event venues “cannot survive,” said Bing Goei, CEO of Eastern Floral and the Goei Center. Goei is advocating for venues to be able to reopen at a 50 percent capacity for indoor events, similar to current COVID-19 restrictions for other venues and restaurants. Indoor trade shows and exhibitions are also allowed at 50 percent capacity if no food service or entertainment is involved.

Editor Joe Boomgaard / jboomgaard@mibiz.com Managing Editor Andy Balaskovitz / abalaskovitz@mibiz.com (energy, policy) Senior Editor Jayson Bussa / jbussa@mibiz.com (manufacturing, tech, sports) Senior Writer Mark Sanchez / msanchez@mibiz.com (finance, health care, life sciences) Staff Writer Kate Carlson / kcarlson@mibiz.com (real estate & development, small biz) Contributing Reporter Josh Spanninga VP of Production & Audience Development Kristi Kortman / kkortman@mibiz.com Digital Specialist Danielle Affholter / daffholter@mibiz.com Graphic Designer Kaylee Van Tuinen / kvantuinen@mibiz.com Senior Advertising Consultant Shelly Keel / skeel@mibiz.com Sales & Marketing Associate Lauren Frailey / lfrailey@mibiz.com Circulation For address corrections or subscriptions, contact MiBiz at 1-877-443-1977 or subscribe@mibiz.com

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MANUFACTURING New compliance registry poised to lift furniture makers’ profile, products By JAYSON BUSSA | MiBiz jbussa@mibiz.com

he Business and Institutiona l F u r n it u r e M a nu f a c t u r e r ’s Association (BIFMA) unveiled a new digital tool this month that is poised to bring greater clarity to the market and help both specifiers and buyers quickly gauge the safety and durability of products. The BIFMA Compliant product registry went online at the beginning of March and is a free tool available to manufacturers — both BIFMA members and non-members alike — and buyers. The registry is a database for products that meet existing American National Standards Institute (ANSI)/ BIFMA standards for durability and safety. The reg ist r y has been Bickers in the works for three years and was created to address the rising concerns among designers and buyers who found it difficult to easily identify products that meet ANSI/ BIFMA safety and performance standards. This new digital tool also falls in line with an

overarching mission for the nonprofit trade association since forming in 1973. Over that time, BIFMA has placed an emphasis on creating comprehensive standards for design and manufacturing. The group started to factor in sustainability after 2000. To gain inclusion on the registry, manufacturers must submit their products for consideration after testing them in an ISO/IEC 17025-accredited test lab certified lab with ANSI/BIFMA standards listed in the test lab’s scope of accreditation. Some of the larger manufacturers have been able to utilize in-house labs while smaller companies are able to utilize third party labs recommended by BIFMA. Prior to the BIFMA compliant registry, manufacturers could claim that their products complied with ANSI/BIFMA standards, but would not need to verify those claims. “We were extremely pleased in the response,” said Deirdre Jimenez, who took over as CEO of BIFMA this summer. “We have both BIFMA members and non-members participating in the program and have reached the one-year forecasted participation level in the first week.” The group has hired an additional technical support resource, while more brands are submitting data to the registry, Jimenez said. “We expect the registry to grow quickly in the next three months,” she said.

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When the new BIFMA Compliant online registry launched on March 1, Holland-based Trendway Corporation (products pictured) saw 15 of its products included, indicating that they meet performance, safety and sustainability standards set in place by BIFMA. COURTESY PHOTO Jimenez came to BIFMA with a background in architecture and interior design. She spent more than 25 years serving in executive and ownership roles in corporate real estate and architecture and engineering consulting. It’s with this perspective that she has spent time engaging with the specifying and buying community, a group that will benefit from the registry. “We feel like those will be the audiences who will benefit from these standards and why these tools exist and these resources exist,” Jimenez said.

Even Footing The registry is inclusive and completely agnostic to the size of manufacturers. While names like Herman Miller Inc. and Steelcase Inc. are well represented, a smaller company like Holland-based Trendway Corp. is also in the mix. That visibility, according to Trendway’s senior engineering manager Brian Bickers, is one of the primary benefits of the registry. “I think it puts Trendway on the map next to some of the bigger, better known names,” Bickers said. “I think it brings our name to potential customers that maybe didn’t think of Trendway being able to provide the same type of products as others and know that we’re doing the same amount of rigorous testing.” Bickers said the process of submitting products for inclusion on the registry is relatively quick and easy. Manufacturers are asked to submit information on the various products, and BIFMA may choose to audit any of the submissions. This requires the manufacturer to furnish reports and documentation affiliated with the product’s testing. Also, an existing product in the registry would have to be re-tested if a manufacturer adds features to it. Trendway — and likely every other manufacturer with products on the registry — tested safety and durability long before the BIFMA Compliant registry. Still, the input gained through the submission process has been beneficial. “For the most part, (submitting products to BIFMA Compliant) was confirming what we already knew,” Bickers said. “There were a few

instances where we had questions from the lab. Like any standards, it’s open to a little interpretation. We were able to work through that and it gives us more insight — thinking of it in a different way that we might not have thought before and potentially making design changes that could improve quality.” For Coalesse, a contemporary furniture brand owned by Steelcase, meeting ANSI/BIFMA standards has been considered the bare minimum in terms of safety and durability. While the program hasn’t necessarily raised the bar in terms of quality, having a public-facing tool that is free to everyone in the industry is something that has enhanced the entire market, said Kim Shaw, global product marketing director for Coalesse. “It’s a really useful tool whether it’s (for) a dealer or a sales person or a customer because it gives them the ability to do that research themselves rather than basically search the internet to try to find it,” Shaw said. “A lot of time, this information is often buried on a manufacturer’s website.” BIFMA Compliant complements an existing tool called BIFMA LEVEL, a third-party certification program for the furniture industry’s sustainability standards. Shaw hopes to see BIFMA and the industry as a whole continue to push these tools and standards to create a more transparent industry. “I’m hoping more things like this will move toward basically a registry platform,” Shaw said. “It also is helpful to see what product lines and what manufacturers are current in their BIFMA compliance. That’s another thing that can be difficult as testing requirements get updated. There sometimes are product lines that are several iterations behind.” In addition to inclusion in the registry, manufacturers can use trademarked “BIFMA Compliant” branding on products and in marketing materials. Joel Zwier, director of sales and marketing for Ludington-based furniture manufacturer Metalworks Inc., said he plans to use the branding on the company website next to each product on the registry. “I think its value is yet to be seen,” Zwier said. “I think as we gather around (BIFMA Compliant) and do more promotion to the industry, I think that’s where it’s going.” Visit www.mibiz.com

Grandville manufacturer producing safer storage product for stamping dies By JAYSON BUSSA | MiBiz jbussa@mibiz.com GRANDVILLE — A West Michigan manufacturer has developed a product that makes the process of storing heavy metal stamping dies safer and easier — and the industry is taking notice. Safety Die Storage Blocks are a new offering from Grandville-based Express Products Inc., which designs and manufactures a variety of products to be sold via its own distribution channels and through big box retailers. Safety Die Storage Blocks are applied to the feet of metal stamping dies so that they can remain elevated off the floor when stored. This allows the tooling to remain clean and in good condition. Until this latest innovation, stamping dies have routinely been set on pieces of scrap wood. To do so, workers have to reach under a die as it is lowered down, putting their hands, fingers and feet at risk. With the Safety Die Storage Blocks, a user’s hands remain above the tooling while the block is set in place. “It’s a constant occurrence in the industry and for some reason no one has come up with a better way than to reach their hand under there,” said

Express Products Chief Operations Officer Ryan Gill. “So, safety is the hugest thing. Everyone we talk to says they love that they don’t have to reach underneath them.” Express Products works exclusively with Michigan suppliers to produce the Safety Die Storage Blocks, and completes the assembly and boxing phases at its 50,000-square-foot, ISO: 9001-certified facility at 2606 Sanford Ave. SW. The company has filed for both design and utility patents and, thus far, has relied mainly on wordof-mouth marketing to get information out about a product that seems to be long overdue. Gill said the company consulted with the Michigan Occupational Safety and Health Administration (MIOSHA) to ensure the effectiveness of the product. As a government agency, though, MIOSHA is not able to publicly endorse a product. Express Products quickly blew through its initial inventory of 1,000 units and has replenished its stock. “I’ve been getting people asking for quotes nonstop,” Gill said. “If they’re in the field whatsoever, they instantly recognize: ‘Hey, we should have these right away.’” “Most people that contact us order two sets,” he added. “After about three weeks, they’ll order 20 or

Grandville-based Express Product Inc.’s Safety Die Storage Blocks are seeing increased interest from manufacturers looking for a safer way to store stamping dies. COURTESY PHOTOS 30 more. Typically, they order them to try in their facility to see what their people say, and that’s when they go all in with their purchasing.” Quality Metalcraft Inc. is one of those customers. The Livonia-based metal fabricator stores roughly 100 dies at its facility. The company purchased an initial set of 48 blocks and has since followed up with an additional set of 48. “It’s easy and makes everything neat,” said Andrew Parker, tool room manager for Quality Metalcraft. “It keeps everything off the floor. It’s not heavy to carry around, either, which I like.” Parker and his team had routinely stacked stamping dies on top of each other with wood, which he said can lead to splintering and sliding dies.

The Safety Die Storage Block is a game-changer, according to Parker. On top of purchases, Express Products has received some interest in distributing the blocks, even overseas in countries like Germany, Italy and Turkey. “We haven’t decided how to go about it yet,” Gill said. “They either want their own territory or certain things and we’re not sure how we’re going to pursue that at the moment. We do have a couple distributors that have been ordering from us, but we haven’t officially said, ‘You’re a distributor.’” As demand grows, Gill said that the company will explore additional suppliers to make sure inventory remains stocked. “It’s looking like we’ll probably be hiring more people here soon,” Gill said.

COMMITTING TO PEOPLE-FIRST

Manufacturing Webinar Series to Focus On 3p Approach to Total Manufacturing

hile 2020 may be in the rearview mirror, the COVID-19 pandemic continues to challenge manufacturers, forcing them to find creative solutions to new and old problems alike. Once again, the Michigan Manufacturing Technology Center – West and The Right Place Inc. have partnered with MiBiz to host a new webinar series in 2021 to assist small- and medium-size manufactures in navigating the everchanging business landscape. The four-part webinar series will focus on the 3P Approach to Total Manufacturing Management, a philosophy built on the Six Sigma framework. Each webinar will take a deep dive into one of the P’s of the 3P approach: People, Process (two webinars), and Product. The first installment of the webinar series, published in February 2021, centered on the benefits of a people-first philosophy for manufacturers.

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Too often, manufacturers express the notion they “just need bodies,” said Ben Wood, a business development specialist with Michigan Manufacturing Technology Center – West, who participated in the webinar. However, without considering employees’ likes and dislikes, their understanding of the business and importance of their position in the organization, simply throwing a body at the problem will only make the challenge worse in the long-run. “Not only does this demonstrate a lack of caring from leadership, but it also puts companies on a quick path to destruction,” Wood said. Placing employees in roles where they are comfortable, early in their career, gives them a foothold in the organization and allows them to carry that comfort level on as they take on more responsibility in the company. It also provides a

coaching opportunity on the “why” of their position, one of the essential components of the 3P system. “Positioning people is just like buying machines,” Wood said. “It doesn’t make sense to buy a stamping press to drill holes in piece of material.” Wood advocates for a talent strategy that includes beginning with a goal and purpose for each new hire. He suggests employers instruct their new hires with a process map to teach them their internal and external customers and the results of mistakes on the company at large. Wood also noted the importance of manufacturing executives connecting with their employees, including setting aside time for open discussion on what the employees learned during their training process. “You’re going to learn about people by asking questions,” he said. “It begins with your onboarding process... That’s going to be the foundation of this whole people part of the 3P process. You have to know your employees and their skillsets and where they want to add value. Once you understand that, there’s plenty of different ways to train them.”

WORKPLACE FLEXIBILITY COVID-19 has forced many businesses to confront unique personnel situations, whether hybrid work-from-home, or enhanced flexibility during the pandemic. While some manufacturing executives may view adapting to these new circumstances with an employee-centered focus as the “fuzzy” aspect of the business, it is essential if a business wants to attract and retain talent, said Cindy Brown, vice president of talent initiatives with The Right Place. “If the thought is that people aren’t as important and your products, processes and services, then you’re going to constantly struggle to attract and retain the right people and get them in the right position,” Brown said. Brown points to three key human resources challenges manufactures are likely to face through

2021. As the pandemic continues, Brown notes the importance of actively improving employee morale, both long-term and on a day-to-day basis. Manufacturing executives will also need to find ways to bridge the gap between traditional workplaces, and the new reality of working from home if they are to recruit and retain talent.

COMMITMENT Like many process improvements, the 3P approach demands commitment from company leadership. However, Wood notes that simply paying lip service to 3P will not yield success. Executives must follow through with people-centered process improvements and actively engage with their employees in open dialogue. “If you’re going to require your employees have a clean work cell, with all their tools, snacks and everything organized and wiped clean, I would highly recommend that you don’t call them into your office and it looks like a hurricane went through there,” Wood said. “You can talk a good game but doing and showing is going to be way more effective as a leader.” Ultimately, the webinar participants agreed that the success of 3P comes down to the commitment on the part of company executives to make changes in a holistic way that best benefits the organization. “These are all tips you have probably heard before,” Brown said. “But what you do and how you do it will depend on your commitment to the organization. These ideas aren’t new, but how you implement them are.”

Find the webinar recap at mibiz.com/3pwebinars

MiBiz / MARCH 15, 2021

TECHNOLOGY

Ferris State moves forward with $29.5M Center for Virtual Learning Facility to house university’s cybersecurity program

Ferris State University’s planned $29.5 million Center for Virtual Learning will house the school’s cybersecurity programming. RENDERINGS COURTESY OF STANTEC INC.

By JAYSON BUSSA | MiBiz jbussa@mibiz.com BIG RAPIDS — With recent approval to begin construction on a new facility, Ferris State University will eventually have a new home for a variety of degree programs while helping the school to develop more dynamic and effective methods of online learning. Last month, Ferris State University’s board of trustees approved moving forward with the construction of a $29.5 million main campus building called the Center for Virtual Learning (CVL). Vandercook Hall, a dormitory constructed in 1957, will be razed to make way for the technology-rich, cutting-edge building, which was designed by Stantec Inc.

The 64,000-square-foot Center for Virtual Learning will host the school’s nationally recognized Information Securit y and Intelligence degree program in addition to the School of Digital Media and the School of Education and eLearning. It will also Fleischman feature facilities to host Ferris State’s eSports programs in addition to cybersecurity competitions. The board of trustees’ approval was needed to complete the design, construction phase services, furniture procurement and other required professional services.

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“One of the goals of the Ferris Forward (strategic plan) centers on offering innovative educational experiences that blend theory and practice,” said Bobby Fleischman, provost and vice president for academic affairs at Ferris State. “In looking at this, we understand the goal of the strategic plan will be achieved through improvement of academic programs and, in this case with the CVL, improving the facilities in which we deliver our academic programs.”

New Digs The CVL will serve as a hub to develop and fine-tune methods of e-learning. Online learning has long been an important component to Ferris State’s educational offering, featuring 30 fully online programs. The need for more effective online learning became more apparent throughout the COVID-19 pandemic, although Ferris State managed to stay open and teach 50 percent of its courses in person. Underscoring the school’s commitment to advanced online learning, during the fall of 2020, Ferris State received a $669,216 federal grant to expand virtual-based STEM programming for rural high school students. The FerrisNow STEM Dual Enrollment Virtual Reality Initiative provides live, virtual reality STEM classes for high school students in 11 rural West Michigan counties, including every public school in Ferris State’s home of Mecosta County. The schools are equipped with end user sites, where they can connect with Ferris State and its faculty. “(The CVL) also helps us serve future students that are in rural areas that do not necessarily have access to the technology. Our grant funding allows us to address new populations, diverse populations, rural populations and to prepare them for eventually becoming Ferris students with a clear pathway into our program,” Fleischman said.

Cybersecurity Home Among its many uses, the Center for Virtual Learning will become the new home for Ferris State’s Information Security and Intelligence (ISI) program. Dr. Greg Gogolin, a professor in ISI at Ferris State, said the program, already regarded as one of the top in the country, will be able to stand out even more with some of the features of the new facility. This includes a Faraday research lab in which external signals are blocked from entering. The CVL will make Ferris State home to the only lab of this nature in the state of Michigan and give students and faculty a new resource in which to conduct research. “It gives us a room where we can research malware and other things,” Gogolin said. “We can put it on networks within that lab and work on transmitting malware to different devices without having to worry about it potentially jumping and getting an innocent bystander, if you will.”

These facilities will be the latest feather in the cap for Ferris State, which established the first cybersecurity program in Michigan and one of the first accredited programs in the nation. On top of that, Ferris State is one of only two cybersecurity programs accredited for online delivery. In 2013, the school was the first university in the country designated as a Center of Digital Forensics Academic Excellence by the U.S. Department of Defense Cyber Crime Center and the Air Force Office of Special Investigations. With the cybersecurity industry facing a desperate need for talent, Ferris State is helping Michigan residents to get first crack at filling those roles. “It is a huge advantage for our Michigan kids interested in the cybersecurity field to have Ferris nearby,” said Susan Rhem-Westhoff, an instructor at the Muskegon Area Career Tech Center who focuses on teaching the network and security technology program. “Having to travel out of state and pay out-of-state fees to attend college is cost prohibitive for most kids,” Rhem-Westhoff said. “Not only can they attend a college in their home state, but the Ferris cybersecurity program is NSA-approved and has top-drawer instructors.” Additionally, Ferris State is just one major player in a growing ecosystem of cybersecurity and networking talent development. “For my students interested in cybersecurity, it is a win-win. They can earn entry-level industry certifications with me at the MACTC, head to (Muskegon Community College) for a couple years and study network security there before heading to Ferris for their last two years, or go directly to Ferris,” RhemWesthoff said. “I have had kids do both.”

New A.I. Program A long w it h mov ing for ward w it h t he CV L, board members also approved a new Bachelor of Science in Artificial Intelligence degree in the College of Business. When unveiling the program, school officials stated they wanted to position the institution at the forefront of artificial intelligence degree-granting, where job growth has been 74 percent annually, ranking it first among the top 15 emerging jobs in the U.S., according to a LinkedIn report. Primary areas of focus for the new artificial intelligence degree will be cybersecurity, the Internet of Things, health care, business and educational applications. “Cybersecurity is something that it’s not a person or a team of people that can respond to things, it’s becoming where a lot of it has to be automated and that’s where the A.I. piece comes in,” Gogolin said. “That’s one of the areas of A.I. we’re going to focus on. There are several others, but that’s sort of the mesh between the two.” Visit www.mibiz.com

POLICY to go out to employers and make sure we make those connections for what’s more convenient for people.”

Ramping up doses

A Grand Rapids COVID-19 vaccine clinic. PHOTO COURTESY OF SPECTRUM HEALTH

VACCINES EMPLOYERS Continued from page 1

Place, which has the capacity to administer 20,000 vaccinations daily, depending on the availability of doses. Mercy Health told MiBiz that it “continues to work closely with (the Michigan Department of Health and Human Services) and our local health departments to reach as many eligible patients as possible.” “With a goal of making the vaccine accessible, we are developing plans to provide vaccines to patients nearby where they live and work. This includes partnering with London organizations and businesses, while also utilizing our community health centers,” the health system said in a statement. Metro Health-University of Michigan Health remains “open to the possibility of collaborating with employers to administer the vaccine if a stronger vaccine supply would become available.”

Growing interest, logistics The Kent County Health Department has received inquiries from employers asking about onsite vaccine clinics for workers. So has the Grand Rapids Area Chamber of Commerce, which is part of the 16-county West Michigan Vaccine Collaborative that includes employers, business organizations, health systems and local health departments. When touring the West Michigan Vaccine Clinic at DeVos Place with employers, “This question comes up: ‘Hey, can you come to my facility?’” said Andy Johnston, vice president of government affairs at the Grand Rapids Chamber. The collaborative for now is referring employers to direct their employees to register for vaccines that are available at DeVos Place, smaller clinics Visit www.mibiz.com

“We know that to reach our goal that at least 70 percent of our residents are vaccinated is going to take both methods, push and pull. We need to pull people into our mass vaccination clinics, but we need to go out to employers and make sure we make those connections for what’s more convenient for people.” KRISTINA WIEGHMINK Public Information Officer, Ottawa County Department of Public Health

operated by health systems and health departments, or at retailers such as Meijer Inc. and Rite Aid that are staffed to handle vaccines. “They’re convenient in many ways to get folks through, so they’re focusing on the clinics first,” Johnston said. There’s also “other logistical considerations” on top of the availability of doses, including manpower and staffing. Setting up an onsite clinic at a company also has to have a certain number of people “to make it worthwhile,” Johnston said. The state last week expanded vaccine eligibility to include people age 50 and older who have a medical condition or disability and for their caregivers, plus guardians of special needs children. Vaccine eligibility opens further on March 22 to anyone 50 and older.

Going where it makes sense As eligibility broadens into the spring, the Kent County Health Department has been considering doing onsite vaccine clinics at employers on a

limited basis. They could come at employers in key industries with essential workers such as food processing facilities, and in instances where the workforce tends to have issues with transportation or language barriers, or have been more susceptible to outbreaks, said Kent County Health Department Director Dr. Adam London. Any onsite clinics at employers would occur at locations “that make sense because of the vulnerability of their workforce and the nature of the work they do in close proximity,” London said. “We may and probably will go onsite to help with locations like that. It’s a possibility, and we’re looking into the logistics of that,” London said. “We’re looking to what locations do offer some return on investment for our staff time and maybe it’s more efficient to handle it that way.” But it’s hard to tell when that might occur, he said, and the Kent County Health Department isn’t planning onsite vaccinations on a broad scale. “A lot of light industry and retail is not going to fall into that category,” he said. “We’re just going to broadly tell those places, ‘Here’s how you can encourage your staff to register and make sure that they have a link for the West Michigan vaccine clinic or local department or those kinds of places.” The Ottawa County Department of Public Health recently piloted onsite clinics at two large employers that are in sectors within present eligibility criteria. The state opened vaccine eligibility March 2 to food processing and agricultural workers — two large sectors in Ottawa County. The Department of Public Health hopes to expand the pilot to more employers as a way to increase access and convenience, depending on the supply of doses and availability of vaccinators, said Ottawa County Public Information Officer Kristina Wieghmink. The pilots were intended to “make sure we are able to go to them to get their employees vaccinated,” Wieghmink said. “A lot of it’s convenience. We want to make sure that we’re making vaccines as accessible to people as possible,” she said. “We know that to reach our goal that at least 70 percent of our residents are vaccinated is going to take both methods, push and pull. We need to pull people into our mass vaccination clinics, but we need

Since vaccinations began in late December following approval of the Pfizer Inc. vaccine, nearly 2.7 million COVID-19 doses had been administered in Michigan as of last week. More than 1.4 million went to people age 65 and older, and nearly 2 million were for people 50 and older, according to state data. Nationally, nearly 32 million people had been fully vaccinated as of midweek last week, or about 10 percent of the U.S. population, according to a Washington Post database. Now that three vaccines are on the market and producers are ramping up production — and a fourth may become available next month from Maryland-based Novavax Inc. — London expects weekly shipments of doses from the state to increase dramatically starting this week. “We’re going to ramp up very quickly with our mass vaccine campaign,” he said. That should allow Kent County to transition by summer from a mass vaccine effort to what London calls a “forever phase” in which vaccines are primarily available and administered at physician offices, local health departments and pharmacies, he said. Even as that point approaches, London urges people to remain vigilant, continue using face masks, socially distancing, avoiding large social gatherings, and to wash their hands often. “We’re getting very close to having this thing beat and it would be a shame if we had a setback at this late point in the game,” he said.

UPCOMING EVENTS FOR PEOPLE FIRST ECONOMY Ben & Jerry’s: A Business Built on Putting People First April 19 at 9:00am From the first day in operation, Ben & Jerry’s has implemented policies and made purchasing decisions in order to address community inequities and these values have strengthened alongside the growth of the company. In this dialogue, Milinda Ysasi, Grand Rapids City Commissioner and President of The Source will speak to David Rapaport, Global Social Mission Officer about the role of business in addressing social inequities and systems that create barriers for everyone in a community to prosper. VISIT PEOPLEFIRSTECONOMY.ORG TO REGISTER OR SCAN THE QR CODE BELOW

MiBiz / MARCH 15, 2021

FOCUS: REAL ESTATE: OFFICE

Downtowns feel the pain as office workers remain home By KATE CARLSON | MiBiz kcarlson@mibiz.com

n a typical year, around 40,000 office workers a day are in downtown Grand Rapids buying coffee or lunch, or sticking around to shop or attend an event. For the past year, though, these office spaces have been empty or only occupied part-time as statewide COVID-19 restrictions have kept office workers home to protect public health. Downtown Grand Rapids Inc. CEO Tim Kelly estimates that about 25 to 30 percent of office workers have returned to their downtown office space, but the steep decline has had a significant ripple effect on already struggling restaurants and retailers. “It’s been really difficult. Even when businesses are open there’s just not the same amount of traffic,” Kelly said. “Downtowns are built on creating activity and vibrancy, so a big part for us is the office workers.” Office spaces filling back up will help downtown restaurants and retailers, but the turning point will truly happen when events start returning, said JLL Inc. Senior Vice President Jeff Karger. “I think restaurants will make a comeback — the ones that survive — because there has been a lot of pent-up demand and people really miss the experience of going out to dinner,” Karger said. Despite businesses struggling with less foot traffic and operating within COVID-19 restrictions, downtown Grand Rapids has seen a net positive of three businesses that have opened downtown since March 2020, Kelly said. Twenty ground-floor businesses closed since the pandemic hit, and 23 opened in that same timeframe — close to what DGRI sees in a typical year, he said.

MARCH 15, 2021 / MiBiz

Loosening restrictions As some venues and indoor dining reopen at limited capacity under COVID-19 restrictions, in-person office work is still restricted. Employers are mandated by the state to create a policy “prohibiting inperson work for employees to the extent that their work activities can feasibly be completed remotely.” The office restrictions stem from a Michigan Occupational Safety and Health Administration emergency order that started Oct. 14 and lasts through April 14. Business groups across Michigan have recently called for loosened restrictions on office space, which Gov. Gretchen Whitmer has said could begin soon. On Feb. 23, business groups across the state — including the Grand Rapids Area Chamber of Commerce — signed a joint letter asking Whitmer to allow businesses more in-person work while still following safety protocols. “From Grand Rapids to Lansing and Detroit, empty office buildings have a damaging impact not only on productivity, innovation, collaboration and mental health but also has put an incredible strain on our communities,” according to the letter. The groups say that the city of Grand Rapids is projecting a $15 million to $20 million budget shortfall from lost local income tax revenue as non-city residents work from home.

Making payments, long-term outlook West Michigan office space occupancy hasn’t changed much so far since the third quarter of 2020, Karger said, though he added that more sublease space is on the market in downtown and suburban areas than in prior years. “We’re still seeing a few groups doing shortterm (lease) extensions for one or two years as

From top: Rosa Parks Circle in Grand Rapids in late 2020. Integrated Architecture LLC’s new office space in Grand Rapids’ Monroe North Business District. MIBIZ FILE PHOTOS they figure out their occupancies,” Karger said. “Although everyone (downtown) seems to be paying their rent, they are not back to work yet. We won’t see people making their way back to work” until the third quarter. Also, an anticipated rise in companies defaulting on loans for office buildings has not come to fruition, he added. “That has not been the case,” Karger said. “People have been making payments and banks are working with clients. However, larger institutional clients are looking to sell properties.”

Vaccine rollout will have a big effect on the office market and when people come back to in-person work, Karger said. Long-term effects on the office market will likely not be seen until the third or fourth quarter, he added. “For my clients that I talk to, it is a case-by-case basis,” Karger said. “Some have real good success in remote working, others not so much. It just depends on the task at hand.” Kelly still sees office space playing a big role in the downtown economy, especially with Perrigo Co. plc and Acrisure LLC moving their headquarters downtown. “As we think about talent attraction and talent shortages, employers need to have a unique experience that attracts talent,” Kelly said. “That will continue to be the case and likely be more so in the future.” Companies have generally recognized that work can continue in a hybrid form of office- and homebased settings, which may lead to right-sizing considerations for needed office space, said Jeffrey Tucker, senior managing director of brokerage and principal at Bradley Co. In general, office needs are going to vary by industry, he said. “At the same time as the hybrid model is being tested, the value of in-person collaboration is also being measured, and that will be valued based on industry and how internal and external service can be accomplished,” Tucker said. Though the degree to which offices fill back up with workers full-time is unclear, the pandemic has been a learning opportunity on the value of in-person work, Kelly said. “Whether it’s from the cultural standpoint, onboarding or attracting new employees — that in-person connection piece is still huge,” Kelly said. “Virtual work will be a part of work going forward, but I don’t think it will replace in-person.” Visit www.mibiz.com

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Lakeshore office markets like downtown Muskegon’s (above) haven’t faced the same pandemic-related challenges as bigger markets. MIBIZ FILE PHOTO

Lakeshore office market shielded from pandemic downturn compared to larger cities By KATE CARLSON | MiBiz kcarlson@mibiz.com

he West Michigan lakeshore office market has remained relatively stable during the COVID-19 pandemic compared to larger cities like Grand Rapids, Detroit and Chicago, according to city officials and real estate experts. “It seems really grim when you read about the future of office space, but most of that news is geared toward skyscrapers in Manhattan or Chicago,” said Drew Durham, brokerage associate at Colliers International’s West Michigan office. Still, businesses that have offices in lakeshore communities are being cautious about what their future needs are going to be, Durham said. Lakeshore markets are currently seeing activity particularly in medical office, insurance and financial sectors, he added. “I’m working with a client who is looking to downsize their office and move it to downtown (Holland). That way, people can work from home but — when they do want to come in — they have an office space downtown around amenities,” Durham said. “They are looking to decrease their overall square footage but move to a more desirable spot.” Durham said it’s still uncertain whether this kind of downsizing and relocating will be a trend, but it shows that there is a chance downtown office space along the lakeshore could be even more desirable post-pandemic. “From an office standpoint, every community is a little different. But areas that are on the shoreline have a truly distinctive feature for people and may be a recruiting opportunity for talent and opportunity to offer something different than a traditional central business district in a metro area because of that resort atmosphere,” said Jeffrey Tucker, senior managing director of brokerage and principal at Bradley Co. The lakeshore also has the potential to lure workers from major cities with remote working becoming more common. Bradley Co. Adviser Drew Nelson sees the possibility for drop-in or co-working spaces being more popular long term along the lakeshore.

Holland fluctuations Among lakeshore communities, Holland has the most office space, most of which is on upper floors Visit www.mibiz.com

of established businesses downtown and in the city’s core. Holland Downtown Development Coordinator Amy Sasamoto has increasingly noticed workers splitting their time between offices and working from home. Overall, Holland’s office vacancy is up slightly but has remained relatively steady during the pandemic. “We’re waiting to see the full effect, but we do have a lot of people that come downtown that don’t work here, so I think we can still be supported by that,” Sasamoto said. “We still see a big influx of people when the weather is nice.” JLL Inc. Senior Vice President Jeff Karger believes a majority of workers want to return to an office but that the pandemic’s full effect on the region’s office market won’t be seen until the third or fourth quarter this year. Holland has a high level of engineering and manufacturing space with a small office market overall, he said. However, Karger recently listed a 132,000-squarefoot office building located at 10717 Adams St. in Holland Township, the former site of Huntington Bank before the company consolidated and opted not to renew its lease in 2017. “It’s vacant and came on the market recently,” Karger said. “It’s a big building for that area and will be interesting to see how it’s used by owners and users.”

‘One less thing to worry about’ Office space has never comprised a huge piece of downtown Muskegon’s real estate, but city officials have seen a slight loss to the office footprint, said Dave Alexander, business development manager at Muskegon’s Downtown Development Authority. “In the last year, year and a half, we lost three banks out of the downtown that moved into suburban sites and just left behind (ATM machines),” Alexander said. PNC Bank, Fifth Third Bank and Huntington used to have 25 to 30 people total working out of downtown before they relocated. It’s not a significant loss, Alexander said, and opens up space for other uses. Having a downtown that does not rely as heavily on office workers gives Muskegon “one less thing to worry about” as officials work on recovering from the COVID-19 pandemic, Alexander said.

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DRINKING ECONOMY APRIL 12, 2021 We’ll provide a thorough update on Michigan’s craft beverage scene including the changes and challenges it is facing in 2021 and the ripple effect on its supply chain. The special focus section also includes a roundtable of small business owners at craft breweries, distilleries, cideries and wineries. Don’t wait to be in this issue! Contact us by Wednesday, March 31 to advertise.

MiBiz / MARCH 15, 2021

LEVERAGING DESIGN-BUILD CONSTRUCTION TO SAVE TIME, MONEY

n today’s fast-paced world, speed to market can drive the success or failure of companies. That is certainly true for housing, retail, healthcare and, of course, industrial and manufacturing. Construction projects that support these industries represent a major investment in time and money, so delivering projects quickly and cost-effectively is paramount. While Rockford Construction possesses experience in a variety of construction delivery methods, we have developed strong expertise in Design-Build construction, the fastest growing and most cost- and time-efficient method used to deliver projects in the U.S. In fact, of the $125 million average annual revenue generated serving industrial and manufacturing clients at Rockford, nearly 85% of our projects are completed using Design-Build.

What is the Design-Build approach and how does it differ from traditional methods? In the traditional project delivery system (Design-Bid-Build), owners manage two separate contracts – one with the design team and the other with the construction company. Decisions are also made in a linear fashion, with less collaboration between the design and construction teams. This is not always the most advantageous method in maximizing opportunities for safety, communication, collaboration, schedule, quality and cost savings. With Design-Build, the owner manages only one contract with Rockford as the single point of responsibility. The owner, along with the construction and design teams, collaborate from the start

at conceptual design and through bidding and construction. The result is improved understanding of project goals and higher levels of communication and collaboration, creating more opportunities to provide value through cost-effective construction or alternative solutions that do not negatively impact design or schedule. Design-Build is a change in mindset from the typical linear project approach to a more fluid approach with the entire team acting as a single entity working towards common goals. “We have leveraged this approach with numerous advanced manufacturing and industrial-focused clients throughout the Midwest region,” said Dan Bailey, vice president. One of Rockford’s key differentiators is its team. Jeff

Taggart, DBIA, project executive, brings a certification from the Design-Build Institute of America (DBIA). This credential demonstrates and validates Rockford’s commitment to Design-Build best practices. “Through a robust combination of education and project experience verification, this certification sets a recognized standard for Design-Build knowledge and expertise,” Bailey added.

What are the benefits of Design-Build? According to DBIA, Design-Build is 102% faster than the traditional Design-Bid-Build approach, and results in an average savings of nearly 4% on projects – for a $5 million project, this is a savings of $200,000. For example, using the Design-Build

approach on a recent project for a medical device manufacturer, our team was able to collaborate even before design started. In-depth discussions with the owner uncovered that an alternative to their specified floor coating would save hundreds of thousands of dollars without adversely affecting design or functionality. By leveraging the Design-Build approach, this client was also able to begin manufacturing sooner by utilizing a phased execution plan, placing priorities on areas of production – one of the many benefits to using a Design-Build approach. Additionally, on a recent project for an aerospace manufacturer, our early involvement in the design development phase allowed for clear communication surrounding redundancy of the mechanical and plumbing systems. This avoided redesign, aligned the necessary scope and project goals, and significantly impacted the project by reducing the overall budget and schedule. Speed of delivery, reliable and real-time cost estimating and management, a single point of responsibility and a collaborative approach are the driving factors in selecting Design-Build. Rockford is adept at working closely with owners to quickly understand project goals. We maximize the talents and capabilities of all team members – including the design team, trade partners and vendors – to deliver a project that can save time and money.

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MARCH 15, 2021 / MiBiz

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FOCUS: REAL ESTATE: OFFICE INCOME TAX

Employers, workers face new dynamic with 2020 local income tax filings

Continued from page 1

“It’s not just this year that has us concerned. It’s next year as well,” Carey said, although federal CARES Act funding from last year may offset much of the loss this fiscal year. Walker is also unique among the 24 cities with an income tax in that it has relatively low property taxes. Roughly twothirds of the city’s budget comes from income tax revenue. “It’s a nice spot to be in when the economy’s strong,” Carey said. “We’re building the plane while flying it, just trying to figure out what this budget will look like.” Hackbarth said the pandemic’s hit to city budgets is twofold: While cities will lose income tax revenue from non-residents, they also can’t collect taxes on unemployment benefits, unlike the state and federal governments. He pointed to state estimates showing a shortfall of $120 million to $160 million from local income tax losses statewide. The unemployment side of the equation adds another $100 million to $110 million, amounting to a roughly $250 million hit to income tax cities, Hackbarth said.

Relief coming Despite the budget concerns, local officials remain optimistic for at least short-term relief included in the federal American Rescue Plan Act. Michigan will receive $10.3 billion for the state and local governments. An analysis by the National Conference of State Legislatures notes that local governments can use the relief funding for pandemic-related costs incurred by Dec. 31, 2024. The funding will be released in two phases: within 60 days after the stimulus bill was signed on March 11 and then after the first year. States also would have to distribute the funding to smaller towns within 30 days of receiving it. “Those are important components as communities look to potentially bridge any economic gap,” Hackbarth said. “We saw in the Great Recession the drag that local governments had because they were hit later with property tax impacts and property valuation drops.”

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

W Meijer Inc.’s headquarters in Walker sits dormant on a recent Thursday afternoon. PHOTO BY KATE CARLSON

In total, the stimulus bill allotted $45.6 billion for metropolitan cities and $19.5 billion for towns with fewer than 50,000 people, according to the National Conference of State Legislatures. Grand Rapids is poised to receive about $94 million while Detroit is expected to receive about $880 million, based on a formula in the bill that accounts for population and poverty rates. Clarin said the stimulus “will be a great help,” and noted that the city of Grand Rapids has “reasonable assurance” that the latest stimulus will offset the current fiscal year’s $15 million shortfall “and we will not have to consider cutting back city services.” In her 2022 fiscal year budget proposal, Gov. Gretchen Whitmer also called for sending $70 million in relief for cities to offset income tax losses. Hackbarth hopes the U.S. Treasury Department moves swiftly to avoid confusion by offering guidance on how the latest federal money is allocated and how it can be spent. In the longer term, the Michigan Municipal League and cities with income taxes want state legislation to address the issue and ensure the state Income Tax Act “adjusts to the situation that’s going on,” Hackbarth said.

“We’re building the plane while flying it, just trying to figure out what this budget will look like.” — GARY CAREY Mayor of Walker

Clarin said Grand Rapids is evaluating “whether there is a possible legislative fix where your tax rate is determined from where your payroll is generated rather than from your physical location,” which could help address the non-resident withholding component. She added that city officials are talking with local businesses about their longerterm plans to better estimate the future budget implications of working from home. “Each of the 24 cities is a little bit different,” Hackbarth said. “But there does have to be a long-term discussion about what changes we may need to make.”

orkers in Michigan’s 24 cities with local income taxes still need to file a 2020 tax return with the city where their employer is based — even if most of last year was spent working from home. It’s a new dynamic this tax season as the COVID-19 pandemic kept many employees at home to protect public safety. It has also raised budget concerns among Michigan cities that rely on income tax revenues from non-resident employees who commute to work. Tax experts say a 2020 local income tax filing is still needed for these non-resident employees since they presumably spent about two-and-a-half months commuting to work early last year. Only income earned outside the city is not subject to a city income tax. If an employer never withheld city income taxes, the employee would still have to pay on what was earned prior to working from home in 2020. “You’re not exempt from filing a city tax return in 2020 just because you worked remotely,” said Derik Rynearson, a tax partner at Beene Garter LLC in Grand Rapids. “If there was any day you worked inside the city limits, then you have taxable wages that should be reported on a return.” The accounting and consulting firm has run into the situation “pretty frequently” during the pandemic with clients who are based in a city with an income tax and had staff working from home in the pandemic. Individual cities have dealt with the situation in varying ways, Rynearson said. Grand Rapids initially wanted a letter from employers indicating that they sent their workforce home, that an employee did not work within city limits and detailing the period of time. The city has since come out with a form that walks taxpayers through a series of questions to figure out what percentage of their 2020 compensation was earned outside of the city. The employee needs to attach the form — which employers have to cosign after verifying the information — to their 2020 Grand Rapids city income tax return, Rynearson said. “File that return and be prepared to file some additional COVIDrelated forms,” he advises. If employers are unclear or find the requirements too burdensome, Rynearson suggests calling their local city tax department for guidance or “to see if there’s some alternative to what’s being proposed currently.” Employers as well should “just kind of keep their eyes and ears open for continuing development as cities kind of work through how this is all working.” “Certain cities have shown different amounts of flexibility,” he said. “They’re doing the best they can with the resources they have to try to make sure they’re still able to collect all of the dollars they’re entitled to, and they’re facing a cash crunch.”

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HEALTH BIZ GRAM EXPANSION

Continued from page 1 generate interest and target other companies in an industry, said Eric Icard, senior business development manager at The Right Place.

Johnston

Icard

“We definitely have been promoting this story. It’s a great success story,” Icard said. “It’s part of the overall story: Here’s a company that was homegrown in West Michigan, was financed by West Michigan investors and has turned into a major success. The more stories we have to tout like that, the more interest it’s going to gain. When other companies are looking for that next location, the hope is that they will say, ‘This seems to have worked in West Michigan. Let’s check it out.’” The Right Place is “actively going out and trying to recruit companies like Grand River Aseptic to West Michigan” in hopes of generating a domino effect of companies that want to align with researchers at the Van Andel Institute, the growing Michigan State University College of Human Medicine research base in Grand Rapids, and the Medical Mile, Icard said.

campaign will highlight the region’s life science industry. The promotion spun out of the pandemic with the appeal of Grand Rapids as a strong, mid-sized city that has “all the urban amenities you want,” plus great access to natural resources, said Andy Johnston, the Grand Rapids Chamber’s vice president of government affairs. Using testimonials, the campaign will tout Grand Rapids as a talent destination for newcomers as well as for people who grew up here and moved away to return to the region. “This is a place Ross to thrive in this new normal, this new economy, for a whole host of reasons,” Johnston said. Opportunity Awaits will highlight the life sciences industr y, including Grand River Aseptic, which has recorded strong grow th in recent years. That growth led to a $160 million contract last fall with the federal government’s Operation Warp Speed and Johnson & Johnson to produce the COVID-19 vaccine, as MiBiz reported at the time. “It’s a PR dream. You have a life sciences company in Grand Rapids, in West Michigan, helping to drive the arsenal of health and helping to fill the vials that will put shots in the arms,” Johnston said. “It’s hard to dream of a better wave to ride than that to showcase why great, cutting-edge life sciences can happen right here in our region.”

A ‘PR dream’

Contract leads to future growth

At the Grand Rapids Chamber, a series of videos over the next six months as part of the “Opportunity Awaits West Michigan”

A contract producer of pharmaceuticals, Grand River Aseptic has been finishing production of a vaccine concentrate

Grand Rapids-based Grand River Aseptic Manufacturing Inc. is eyeing new investments while being seen as a model for business attraction following its contract to produce COVID-19 vaccines. COURTESY PHOTO and filling sterile vials for J&J subsidiary Janssen Pharmaceuticals Inc. Grand River Aseptic has been producing the vaccine for a few months in anticipation of J&J receiving U.S. Food and Drug Administration approval late last month. The doses that Grand River Aseptic produces at a $60 million, 60,000-square-foot facility that opened last summer near downtown Grand Rapids go to another J&J facility for final distribution. The contract with Operation Warp Speed and J&J runs through 2021 “and potentially beyond that,” President and CEO Tom Ross said. Involvement in Operation Warp Speed and J&J’s vaccine enabled Grand River Aseptic to make long-term investments to significantly increase production capacity that will allow it do more volume with pharmaceutical companies,

and to “just to be prepared for what could happen in the future,” Ross said. The contract has led to potential future business opportunities for Grand River Aseptic, Ross said. “It’s definitely a showcase contract and the work we’re doing with Operation Warp Speed and J&J has highlighted the incredible capabilities that GRAM has,” he said. “It significantly increased the amount of awareness GRAM has on a national scale.” To handle the contract, Grand River Aseptic hired about 125 people over six months and now has a workforce of 350 people. The company plans to hire another 75 people through the end of the year, from entry-level positions to experienced management roles. The additional staff will “really support the tremendous growth and the additional capacity that we’re adding in the near future,” Ross said.

Grand River Aseptic plans to open a new 110,000-square-foot finishing center late this spring on Patterson Avenue SE nea r Gera ld R . Ford International Airport, and recently purchased sophisticated equipment for the facility near downtown that will arrive next year. Ross called the company’s involvement in making the J&J vaccine an “honor” and a “privilege.” The development of the J&J vaccine in less than a year “was truly an amazing accomplishment,” he said. “The opportunity to really save lives and to be part of this solution is something you can only dream of,” Ross said. “This is the type of thing you tell your grandkids about when you get a little bit older and reflect back on what you did in your career. This is an incredible opportunity for us.”

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Priority Health, Blue Cross earnings highlight volatile 2020 for health insurers By MARK SANCHEZ | MiBiz msanchez@mibiz.com

he yearlong COVID-19 pandemic drove down earnings last year at West Michigan’s major health insurance providers. Blue Cross Blue Sh ield of Michigan and Priority Health — which together dominate the West Michigan market — each recorded lower net income for 2020 in a volatile year largely spent responding to the pandemic on several fronts. The year included waiving co-pays for COVID-19 testing and treatment for members, as well as providing employers premium credits at midyear as medical claims overall declined sharply last spring. Despite t he volat i le Jones year, finance executives at Priority Health and Blue Cross Blue Shield say they met ta rget s for a n nua l operating margins. “We had a really strong year,” said Priority Health Chief Financial Officer and Senior Vice President Mary Anne Jones. “2020 was Mozak unprecedented in terms of COVID and what we all went through, but we weathered the storm strongly and we also helped our members and providers weather the storm as well.” Priority Health recorded net income of $143.2 million in 2020 on premiums revenue of $5.18 billion. The 2020 results included $187.6 million in operating income, and a $41.4 million loss on investments during a year of stock market volatility. The 2.8-percent net income margin fits within the 2-percent to 3-percent range Priority Health targets each year for the bottom line, Jones said. The 2020 financial picture includes $367.6 million in premium revenue from Total Health Care in Detroit that Priority Health acquired in January 2020. Between its two health plans, Total Health Care added nearly $4.8 million to Priority Health’s bottom line in 2020. The year compares to the $185.8 million in net income Priority Health recorded in 2019 on $4.56 billion in premium revenue, with $82.2 million in investment income and $103.4 in operating income.

‘Focused on affordability’ Coming through the year in relatively good shape financially should enable Priority Health to maintain rate stability for small employers. Priority Health rates statewide increased an average of 2.6 percent for 2021 policy renewals. Priority Health Insurance Co. raised rates an average of 1.5 percent for policies that began Jan. 1. Visit www.mibiz.com

“In looking at 2022, we’re still very much focused on affordability and keeping rates and trends as low as possible,” Jones said. During 2020, Priority Health provided small group commercial and individual policyholders $37 million in premium credits of 15 percent on their bills in June and July. That number grew to $60 million with premium credits to the state on Medicaid policies, Jones said. Priority Health’s higher costs from responding to the pandemic — including more than $180 million to treat members who contracted the coronavirus and became ill — were more than offset by the lower medical claims trend, she said. Likewise, Blue Cross Blue Shield provided small employers a 30-percent premium credit in July. The premium credits resulted from significant reductions in medical claims early in the pandemic when care providers were unable to perform non-emergency surgeries and procedures. As with most health plans and insurers, Priority and Blue Cross waived copays and deductibles on COVID-19 testing and treating for members, a cost that exceeded $20 million. Priority Health recently extended the zero outof-pocket costs for members through Sept. 30, including COVID-19 vaccines. Priority Health, which has more than 1 million members statewide enrolled across all policy types, also extended terms for employers that were hit hard by the pandemic and struggled to pay their monthly policy premiums. In the small and large group commercial markets, 47 employers took a premium deferral of three or six months. “People just needed time and they needed the assurance that we were going to be partners with them,” Jones said. “We came up with custom plans for whatever worked for them and worked through it.”

“2020 was unprecedented in terms of COVID and what we all went through, but we weathered the storm strongly and we also helped our members and providers weather the storm as well.” — MARY ANNE JONES CFO and Senior Vice President, Priority Health

with unprecedented volatility and disruption in 2020,” Paul Mozak, Blue Cross Blue Shield of Michigan’s senior vice president for finance and chief risk officer, said during a March 1 media briefing. “We were able to weather that

disruption and uncertainty in part by keeping our health business focused squarely on supporting the needs of our members, our group customers, provider partners and communities.” Blue Cross Blue Shield put $1.3 billion toward the pandemic response in 2020 that includes more than $115 million in medical, dental and vision policy premium rebates. The company waived $74 million in member costsharing for COVID-19 tests and treatments and $65 million in telemedicine copays for members. Blue Cross Blue Shield made $680 million in advanced payments to health systems and $5 million to help physicians adopt telehealth platforms. The company also paid $465 million in medical pharmacy claims for 164,000 members who became ill with COVID-19 last year, Mozak said. An investment gain of $724 million offset some of that cost and “significantly lessened the pressure on Blue Cross’s health insurance lines,” he said.

‘Unprecedented volatility’ Detroit-based Blue Cross Blue Shield of Michigan — the largest health insurer in the state — recorded a $120 million operating gain for 2020 on total revenues of $30.1 billion across all lines of business that includes health insurance and Lansing-based worker’s compensation provider AF Group. The 2020 results are in line with annual operating margins over the past decade that averaged less than 1 percent, but are less than half of an operating gain of $248 million in 2019 on $30.2 billion in total revenues. In its core health insurance market in Michigan, Blue Cross Blue Shield recorded net income of $315.4 million on $9.3 billion in total revenues, according to a filing with state regulators. The results include an $87.7 million gain on underwriting health policies and a net $189.6 million investment gain. The year compares to $905.3 million in net income for 2019 for the health insurance business in Michigan on total revenues of $9.2 billion. “Like all businesses, the Blue Cross Blue Shield of Michigan enterprise was confronted

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HEALTH BIZ

3-year CEO contract extension looks to bring continuity during Perrigo’s transformation By MARK SANCHEZ | MiBiz msanchez@mibiz.com

urray Kessler signed on for at least another three years as Perrigo Co. plc’s chief executive to “finish the job” he started to transform the company. A former tobacco executive who joined Perrigo as president and CEO in October 2018, Kessler told investment analysts recently that initiatives to turn around the company restored sales growth and improved operations in the international consumer self-care division. Given the progress that Perrigo (Nasdaq: PRGO) has made on a transformation plan Kessler launched

in 2019, including the pending sale of its Rx generic pharmaceutical division for $1.55 billion, he agreed to extend his contract by three years. “I’m excited by what we have accomplished to date and even more excited by all that remains to accomplish going Kessler forward,” Kessler said during a March 1 quarterly earnings call. “I intend to finish the job and create significant value for our shareholders, of which I am one.” He specifically noted rebuilding a “robust new products pipeline,” developing an e-commerce platform, and changing more than half of the company’s

leadership through internal promotions and external recruiting. “I think Perrigo has a very, very bright future ahead of it,” Kessler said.

CEO turnover Kessler became CEO two and a half years ago after a tumultuous period for Perrigo that saw declining sales and the need to fend off a hostile takeover bid from Mylan Inc. He was the corporation’s third CEO in a year, and the fourth in four years. Perrigo directors hired Kessler when former President and CEO Uwe Roehrhoff abruptly stepped down in early 2018 after just 10 months on the job. Roehrhoff had succeeded John Hendrickson, a long

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time Perrigo executive who became CEO in April 2016 following the resignation of then-Chairman and CEO Joe Papa. Papa left the company to become CEO at Quebec-based Valeant Pharmaceuticals International Inc. Hendrickson subsequently decided to retire in June 2017, citing personal reasons. He remained as CEO until Roehrhoff’s hiring. The Perrigo board’s effort to keep Kessler as CEO provides needed continuity for executive leadership as the company’s transformation progresses, said Sel Hardy, an analyst with CFRA Research in New York City. “It definitely provides confidence and erases the uncertainty about whether there’s going to be any near-term CEO change again,” Hardy said. “So, it’s another positive development.” Kessler’s contract with Perrigo was to expire Oct. 8, 2021. Under the extension he signed March 1, his contract now runs through Oct. 8, 2024, at an annual base salary of $1.2 million with automatic one-year extensions, according to a filing to federal securities regulators. The contract includes an annual bonus target of $1.5 million in 2021 and “not less than” $1.7 million in 2022, plus long-term incentives, according to the filing to the U.S. Securities and Exchange Commission. Based in Allegan but domiciled in Dublin, Ireland, Perrigo recorded 2020 sales of $5.06 billion with a net loss of $162.6 million, or $1.19 per diluted share. Minus charges during the year, Perrigo recorded adjusted net income of $552 million, or $4.02 per diluted share. The 2020 results compare to $4.83 billion in sales and net income of $146.1 million, or $1.07 per diluted share, in 2019. Perrigo forecasts 3 percent organic sales growth in 2021 with a 5-percent increase in adjusted operating income.

“It definitely provides confidence and erases the uncertainty about whether there’s going to be any nearterm CEO change again. So, it’s another positive development.” — SEL HARDY Analyst, CFRA Research

Many companies adopted work-from-home strategies in 2020 as a way to cope with COVID-19. Now, a growing number of those firms are considering WFH their “new normal” for 2021 and beyond. They’re also helping employees prioritize their physical, mental and emotional health by creating productive workspaces and healthy habits at their new home offices. Join MiBiz and wellness consultants GIG Design, LLC for this free 50-minute webinar on Tuesday, March 16 at 11 a.m. We’ll explore the impact of working from home on employee health, wellness and productivity. Plus, we’ll share actionable strategies that companies can utilize to help their employees thrive while working from home.

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MARCH 15, 2021 / MiBiz

Transformation continues The company this month agreed to sell its Rx generic drug division to New York private investment firm Altaris Capital Partners LLC. The deal — which is expected to close in the third quarter — will complete a major product portfolio reconfiguration under Kessler’s strategy to transform Perrigo into a self-care company primarily producing over-thecounter medications. “The sale of our Generic Rx business is the most impactful step in Perrigo’s transformation plan. This transaction establishes Perrigo as a pure-play global consumer self-care company with industry leading fundamentals,” Kessler said in a statement on the deal. “At this point all of the commercial pieces of Visit www.mibiz.com

Bronson capital campaign leads to more fundraising for patient care By MARK SANCHEZ | MiBiz msanchez@mibiz.com

W A rendering of Perrigo’s planned headquarters in downtown Grand Rapids. COURTESY RENDERING our transformation are in place and Perrigo is poised to create significant value.” Under terms of the sale, Perrigo would receive $1.5 billion in cash from Altaris Capital, which also assumes $50 million in potential research and development milestone payments and contingent purchase obligations. Once the sale closes, Perrigo “will be solely focused on driving significant long-term shareholder value through our consumer self-care offerings,” Kessler said, noting that consumer self-care has been the company’s focus since its founding in 1887, though the generic prescription business was added within the past 15 years. “With this transaction, Perrigo is returning to what it has always been with a renewed energy, purpose and a strong desire to win,” he said. The deal will give Perrigo more than $2 billion in cash for its consumer self-care business to put toward “prudent and revenue accretive M&A,” he said. “We will continue, just as we have in the past, to be extremely disciplined in our purchases,” Kessler said. “I’m not just going to run out and buy anything. My idea is to continue to build scale in the company, find targets that accelerate growth and make for a bright and strong future going forward.” Perrigo’s generic prescription drug division generated $975 million in sales in 2020, about $165 million of which came from new products, with an adjusted gross profit of $400.1 million. The Rx division largely produces topical medications that include generic creams, foams, mousses, gels, liquids and inhalable products. The pending sale led CFRA Research to upgrade Perrigo shares from a hold to a buy. The upgrade came despite what Hardy in a research note to investors called disappointing fourth quarter results for Perrigo, which reported a 2.5-percent decline from a year earlier for the final three months of 2020, and 4.7 percent organically, to $1.3 billion. The divestiture “is a game changer as it will enable (Perrigo) to be a more valuable play as a pure consumer self-care firm,” Hardy wrote. The added cash provides capital for “small M&A” in the self-care consumer business, as well as an “extra cushion” to an ongoing tax legal case in Ireland that could cost Perrigo a reported $1.9 billion, Hardy told MiBiz in an interview. “The timing is definitely right and Perrigo will benefit from the additional cash boost in its balance sheet and more flexibility to invest in different areas,” she said. Kessler attributed the quarterly sales decline largely to “unprecedented low levels of cough, cold and flu” resulting from social distancing requirements, face mask measures, mandates and other restrictions in the COVID-19 pandemic. The “non-existent cough/ cold season” in the fourth quarter dampened sales of over-the-counter medications by $63 million and is an example of how “the impact of COVID-19 is unpredictable and constantly changing,” he said. Visit www.mibiz.com

hat began as a capital campaign for a new cancer treatment center in Kalamazoo and to upgrade care in Battle Creek has turned into a broader effort by Bronson Healthcare to expand patient access to care. The Bronson Health Foundation’s Cancer Care Campaign has quietly netted pledges from more than 100 donors totaling $9.2 million, exceeding an original goal of raising $8 million. Surpassing the original goal led the Foundation to add elements to the capital campaign. Among them is creating a fund to help patients “struggling for whatever reason with obstacles to their Morrow care,” such as transportation to a medical appointment and affordable medications, said Terry Morrow, vice president of development at Bronson Healthcare. The foundation also wants to fund support services for oncology patients. That could include, for example, assisting cancer patients who experience hair loss from radiation therapy or women who had a mastectomy and need specialized garments and clothing that aid healing, Morrow said. The Cancer Care Campaign that launched two years ago moved into a public fundraising phase this month. The foundation has not set a new target or goal for the ongoing campaign and aims “to raise as much money as we can,” Morrow said. “As we’re adding new elements to the vision, some of those have unlimited needs, really. What we’re hoping to do is invite as many folks in the community who can relate and understand and ask them to contribute,” Morrow said. “We know there is really a lot of unmet need and we’re so thrilled and humbled by the generosity of these communities. It’s just allowing us to meet even more of these needs.” The capital campaign initially sought to raise funds for the $60 million Frank J. Sardone Pavilion that opened Feb. 1 on the campus of Bronson Methodist Hospital in downtown Kalamazoo, plus buying radiation technology at the Bronson Cancer Center in Battle Creek. As well, the campaign supports a new psychologist for pediatric oncology patients and their families.

Bronson Healthcare’s new Frank J. Sardone Pavilion cancer treatment center in downtown Kalamazoo. COURTESY PHOTO

A few donors have committed more than $700,000 to support uncovering and addressing disparities in both outcomes and patient experience in cancer care. That’s a non-traditional element for capital campaigns that generally aim to cover new construction and the cost of high-tech medical equipment. “We know that in some parts of our community, some patients experience our system differently and they experience outcomes differently. We’re relatively confident that some of those disparities are related to inequities,” Morrow said. “Bronson is committed to being an equitable health care provider and being there for every community member that needs us. We want to do some hard work to uncover which disparities are related to inequities and start addressing those.” Donations to Bronson’s Cancer Care Campaign have come from individuals, families, businesses and foundations across the region.

Supporting ‘healing environments’ Kim Nuyen — president of Moore Electrical Service Inc. in Kalamazoo — and his wife, Valerie, gave the lead $1.25 million donation to the campaign. “My family has confronted the realities of cancer treatment. Making this gift is meaningful as our community builds a better and more coordinated vision for cancer care,” Nuyen said. “Facilities and spaces really matter during a patient’s time of vulnerability, and Bronson is delivering the healing environments that our families, friends and neighbors deserve.” Other donors include the Irving S. Gilmore Foundation, The Maxon Foundation at U.S. Bank, Bronson Battle Creek Hospital Community Partners, Havirmill Foundation, Frank Sardone and Susan Fall, Suzanne Upjohn Delano Parish Foundation, Dorothy U. Dalton Foundation, Friends and Family of Mall City Mechanical, CSM Group Inc., W.S.

“We know there is really a lot of unmet need and we’re so thrilled and humbled by the generosity of these communities. It’s just allowing us to meet even more of these needs.” — TERRY MORROW Vice President of Development, Bronson Healthcare

and Lois VanDalson Foundation, Miller Johnson PLC, and Josh and Pamela Weiner. Many donors have given previously to Bronson and “stepped forward when we started studying this as a potential campaign a few years ago and said, ‘We’d like to be a part of it,’” Morrow said. The Bronson Health Foundation exceeded the original goal to raise money for a rapid response fund even after doing a “very hard pivot” last spring when the COVID-19 pandemic hit, he said. The foundation raised $1.2 million that went for uses including buying ventilators and hospital beds and providing child care for frontline workers whose children were suddenly home from school. Bronson Healthcare pursued development of the new Sardone cancer treatment center after the West Michigan Cancer Center and Institute for Blood Disorders — a partnership between Bronson and Ascension Borgess — decided in 2018 to transition medical oncology and infusion services to each hospital. At Ascension Borgess, construction continues on the $20 million Ascension Medical Group Borgess Cancer Center on an 8.2-acre site near Stadium Drive and Drake Road in Oshtemo Township. MiBiz / MARCH 15, 2021

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ECONOMIC DEVELOPMENT

Sault Tribe EDC celebrates entrepreneurship, offers resources via Sault Tribe Thrive By JOE BOOMGAARD | MiBiz jboomgaard@mibiz.com

rowing up in the rural eastern Upper Peninsula, David Goodreau saw his father and grandfathers support their families by starting and operating small businesses. After a two decade long career in the military and some time working in sales for a manufacturer in Milwaukee, Goodreau began to think the notion of going into business might make sense for his family, especially when he realized he would have three children attending college all at the same time. “The impetus in hoping to start a business was to support my family and put my kids through college,” Goodreau said. He credits an uncle who was high in the executive Goodreau ranks at Tyco International for giving him the guidance he needed to put some structure to his “wild idea.” The advice: “Go with what you know.” That’s why Goodreau leveraged his military experience in aviation to launch Northern Wings Repair Inc. in Newberry, which Schultz has grown into a 26-person aerospace manufacturer that serves customers including NASA, Boeing Aerospace, the Defense Logistics Agency, L-3 Technologies and Sierra Nevada Corp. “We custom built the shop, which is really state of the art,” Goodreau said, noting that auditors from OEM clients often visit and are pleasantly surprised by the high-tech environment that’s based in a remote rural area of the Upper Peninsula. “We created a cult of safetyconscious, quality-aware fanatics.” While Goodreau leveraged his relationships and his expertise in aviation in starting the business, many of his fellow members of the Sault Ste. Marie Tribe of Chippewa Indians lack those kinds of connections or entrepreneurial role models. That’s why the Sault Tribe Economic Development Corp. formed the Sault Tribe Thrive initiative as a way to celebrate the success of tribal entrepreneurs, offer resources to would-be business owners and potentially lure tribal member-owned companies and other partners to tribal lands in the Eastern U.P. Sault Tribe EDC leveraged a $485,000 grant from the Minority Business Development Agency in the fall of 2019 to create Sault Tribe Thrive. Initially, the plan was to put some structure around an outreach effort to successful tribal member-owned businesses that Executive Director Joel Schultz started when he joined the organization in 2016. After meeting with five tribal member-owned companies, four of them went on to open offices at the tribe’s Tamarack Business Center in Sault Ste. Marie. About 12 people now work out of the center and earn salaries of $38,000 to $70,000, “which for our area are pretty good jobs,” Schultz said. Visit www.mibiz.com

Sault Tribe Thrive, an initiative of Sault Tribe Economic Development Corp., aims to support tribal entrepreneurs, create a pipeline for tribal collaboration and lure companies to tribal lands such as Crane Industrial Suites (left), a new multi-tenant facility that will break ground later this year. Right: Tamarack Business Center. RENDERING COURTESY OF SEVEN GENERATIONS ARCHITECTURE AND ENGINEERING. COURTESY PHOTO

Schultz planned to travel and meet with other member-owned businesses, but then the pandemic hit and forced a change of plans. The EDC switched gears and developed a webbased directory to celebrate member-owned businesses. To date, it includes more than 170 listings for businesses in Michigan and beyond ranging from breweries and retail shops to outdoor equipment manufacturers, professional services, hospitality and more.

Everything But Money The Sault Tribe Thrive initiative forms the basis for the EDC’s outreach-intake efforts around business development that aims to foster a culture of entrepreneurship among members and help tribal members’ businesses access the resources they need to grow and thrive. “We have some self employment businesses contacting us for guidance on what do they have to do legally, how could they sell to the tribe, can they apply for a grant, all the way up to we’re dealing with $25 million companies that are looking to partner with us to approach 8(a) certification or maybe locate on our land and get HUBZone status. It’s a wide range,” Schultz said. Like with most other aspiring entrepreneurs, tribal members most frequently need help with understanding the financials of running a business, he said. “If you’re going to do a startup, you need to be able to analyze the financials of something. You need to be able to use your financials to determine what are the problems in your company,” Schultz said. However, the most frequently asked questions he gets from tribal members hinge on whether the tribe can give them money to help with their businesses. While some entrepreneurs walk away from that conversation feeling dejected, many continue to work with the EDC to refine their business plans and practices to get to a place where they can successfully find capital from another source. “There isn’t a business challenge that we can’t find a solution for, but we can’t find them money. We’re just not in that position,” he said. “There is no magic dust and that’s what people are looking for.” Goodreau at Northern Wings argues that’s the right approach for the tribe to take. “The last thing an entrepreneur needs is a big wad of money, but that’s the first question everyone asks,” he said. “To me, that’s backwards; that’s gambling with someone else’s money. Build the infrastructure, make mentors available. Ideas are free.

“The funny thing is people don’t necessarily understand entrepreneurism. I didn’t when I started, either.”

Celebrating Successes In addition to offering coaching and mentoring resources, Sault Tribe EDC also hopes to offer peer-to-peer connections for tribal memberowned businesses that it identifies as part of its outreach. However, the effort could also help feed a pipeline of acquisition and partnership opportunities for Sault Tribe Inc., the tribe’s holding company. The current portfolio includes Chippewa Government Solutions LLC, an online educational company that will go after training opportunities via federal contracts. The company, which is currently in the process of securing 8(a) certification from the U.S. Small Business Administration, grew from connecting with a tribal member who had started a successful business in that sector. The tribe also looks to increase the number of companies, whether tribally owned or otherwise, based on tribal lands. The Sault Tribe Thrive website includes detailed information about tribal properties that are available for development. In addition, the tribe is also building out some of its properties, including the multi-tenant Crane Industrial Suites that it expects to break ground on this year. Schultz said the underlying goal is to help members position their companies to grow and serve as examples to other tribal members who may be considering starting their own businesses. “We’re trying to build the infrastructure to support entrepreneurship for our tribal members,” Schultz said. “The success of Sault Tribe Thrive will be defined by jobs created, businesses started, capital formation and sales growth.” For his part, Goodreau welcomes the new resources, which he hopes will also serve as a catalyst of sorts in helping to create a “definitive tribal identity.” “The premise is that there’s safety in numbers or amassing enough people in one spot that you’d be able to get assistance from somebody,” Goodreau said. “Being an entrepreneur with an aviation company in Newberry, Michigan is a lonely endeavor,” he added, a wry reference to his aerospace firm’s unlikely location. “I’ve been toiling away on my own business for years, so it’s neat to get to know the tribal members that have also been starting their own businesses.”

A Lume Cannabis Co. dispensary on Sault Tribe land in the Upper Peninsula. COURTESY PHOTO

Tribe’s partnership with Lume Cannabis ‘performing well’

art of Sault Tribe Economic Development Corp.’s push with Sault Tribe Thrive is to find ways to leverage the advantage of tribal sovereignty within the business community. As a sovereign tribal nation, the Sault Ste. Marie Tribe of Chippewa Indians is exempt from state and local laws. Additionally, doing business on tribal lands can come with tax advantages in some instances. The tribe leveraged that sovereignty in a partnership announced last summer with Lume Cannabis Co., a vertically integrated marijuana company. While some local communities in the Upper Peninsula opted out of participating in the state’s recreational cannabis market, those local regulations do not apply on lands within those communities owned by the Sault Tribe, which legalized marijauna. To date, Lume has opened two dispensaries on Sault Tribe land and plans to have a total of four operating across the tribe’s seven-county service area by June, according to Joel Schultz, executive director of Sault Tribe EDC. The existing state-licensed stores opened in mid and late January in Sault Ste. Marie and Escanaba. In a late February interview, Schultz said the tribe is “very comfortable with our decisions” to partner with Lume after the dispensaries had been open for a month and a half. “I don’t know if we could have successfully launched them on our own, at least not in the time frame that we did,” Schultz said. “But partnering with an industry expert and using the status as an advantage that we had to partner and capitalize on that, I think was a great opportunity for the tribe in an industry that we might not have been able to get into otherwise.” Reported by Joe Boomgaard

MiBiz / MARCH 15, 2021

SMALL BIZ

Music venue operators in a ‘holding pattern,’ awaiting relief and loosened restrictions By KATE CARLSON | MiBiz kcarlson@mibiz.com

Pux Cider Taphouse at 311 Fuller Ave. NE in Grand Rapids. PHOTO BY KATE CARLSON

Ottawa County apple growers open Pux Cider taproom in Midtown Grand Rapids By ANDY BALASKOVITZ | MiBiz abalaskovitz@mibiz.com GRAND RAPIDS — Brothers Chris and Andy Schaefer managed through cost overruns and construction delays during the COVID-19 pandemic and recently opened their new Pux Cider Taphouse in the city’s Midtown neighborhood. The now yearlong pandemic caused minor pivots from the company’s original plan, but the project makes good on years of conceptual work to bring the family’s fermented apple varieties into a public taproom setting. The Schaefers — along with their dad, John, and uncle, Mark — operate a 300-acre apple farm as Schaefer Cider Co. LLC in Conklin in the northeastern corner of Ottawa County near Sparta. Chris Schaefer says the farm’s dozens of apple cultivars — including Kingston Black, which he calls the “holy grail of cider apples” — set the company apart from other cideries. “We’re pretty lucky we get to play with all of these apple cultivars and use them in our cider,” Schaefer said. Pux had a soft opening in early March to test out the bar’s operations while the grand opening was March 11 with 12 ciders on draft. The taproom doesn’t have a kitchen, but Schaefer said a food truck might be considered. The taproom is also located next to The Cheese Lady, with cider and cheese pairings to follow. “It makes you feel like a millionaire when you eat cheese and drink cider,” Schaefer quipped. The Schaefers’ Conklin property is an ancestral orchard that’s been in the family for 160 years. Ten years ago, they started “growing old school apples” and making hard cider. Cider production scaled up about five years ago while distribution came a few years later. The company planned a taproom for the next phase of its evolution, but the project proved cost-prohibitive at the Conklin farm. “We said, ‘Let’s look for some place in the cit y,’” Schaefer said, settling on the building at 311 Fuller Ave. NE two years ago. The Schaefers originally planned to open the taproom in April 2020 before the pandemic hit and halted construction to the facility. Multiple unforeseen cost overruns — including a new air filtration system required by the city — led to a roughly $75,000 total buildout in the 1,300-square-foot space. They’ve also added about 800 square feet of outdoor patio space in front of the taproom. Schaefer continues to split his time between the taproom and the farm. The taproom’s name is a “modernized” adaptation of the character Puck in Shakespeare’s “A Midsummer Night’s Dream” — a character Schaefer described as “the ne’erdo-well troublemaker.”

MARCH 15, 2021 / MiBiz

enue owners celebrated in late December when the $900 billion federal stimulus package was passed and included $15 billion earmarked for live venues. But more than two months have passed and funding applications still haven’t been released, pending guidance from federal officials. The Shuttered Venue Operators grant program included in the federal spending package was signed into law after about eight months of advocacy through the Save Our Stages initiative led by the National Independent Venue Association. Virtually no events with crowds have taken place at live venues for a year now, leaving owners with no choice but to apply for relief grants and weather the pandemic, or shut down for good. “We’re in a holding pattern. The (state) restrictions that were lifted last week don’t lead us to opening back up,” said Scott Hammontree, general manager and talent buyer at The Intersection in Grand Rapids. State officials lifted some capacity restrictions this month for some event venues, but not those that offer food and drink or live entertainment. The hardest part about the pandemic has been the inability to plan for anything, said Michelle Hanks, who co-owns Seven Steps Up in Spring Lake with her husband, Gary Hanks. “We have a sign that needs to be replaced and nobody wants to finance a company that’s been shut down for a year,” Michelle Hanks said. “We have repairs and maintenance items that we desperately need to do but we can’t plan for it.”

Waiting on SBA Hanks wants to be angry about how slow the process is going, but she also knows the U.S. Small Business Administration — which is responsible for administering the Shuttered Venue Operators funding — was not set up to distribute $15 billion worth of grants to help prop up a specific industry. The American Rescue Plan signed into law on March 11 includes another $1.25 billion in grants for venues. “Everybody we talk to about why applications have not been released is that the SBA did not have the capacity to administer the funds, which to me is really frustrating because I don’t know why they didn’t think of that sooner in those months of advocacy,” said Tami VandenBerg, who co-owns Pyramid Scheme in downtown Grand Rapids. “My hope, and all of our hope, is that they can scale up the SBA and get these funds out.” On March 11, the SBA announced that grant applications under the previous stimulus package would open early next month. Even with the funding, it’s not clear which venues will survive and which will close for good: Some have more reserve funding than others, while some operators own their

Like many music venues, the Pyramid Scheme in downtown Grand Rapids is waiting for federal grants approved last year to start flowing to businesses. MIBIZ FILE PHOTO building, VandenBerg noted. “There are many venue owners that are many months behind on rent and property owners are waiting to see what is happening with these funds before evicting people,” VandenBerg said. Meanwhile, funding is coming in from other sources. The state recently approved $3.5 million for Michigan entertainment establishments after advocacy from the Michigan Independent Venue and Promoter Association. The Michigan Economic Development Corp. approved funding for recipients, but MIVPA was intimately involved in the grant process, VandenBerg said. “The state funding was great, and will give venues a lot of breathing room,” Hammontree said. VandenBerg volunteered to be part of the process and told MiBiz on March 8 that about 400 venues applied for the grant funding, while about 100 were eligible. On March 9, Pyramid Scheme was awarded $40,000 through the state grant program. “Anything is better than nothing for us. But for a large venue, just opening the building is cost prohibitive because you need a certain amount of people to just open the building,” VandenBerg said. “The business can only succeed if we can get at least 400 people in the back (venue space at Pyramid Scheme) a couple times a week.”

‘We’re an ecosystem’ Additionally, the logistics of booking tours and talent to ensure profitability is complex for all parties involved, Hanks said. “Our industry has to go online together,” Hanks said. “We’re an ecosystem. I’m dependent on that little venue in Texas to be open for artists to tour — that’s just as important

“From the beginning we were prepared to weather this out — we didn’t know it would be 12 months, but we were committed to making it through. We are eager to get back out once again.” — SCOTT HAMMONTREE General Manager and Talent Buyer, The Intersection

as the venue in Lake Orion opening. Every venue needs to be online, artists need to have profitabile and healthy tours that can go on or they can’t and won’t tour regularly.” She added that no other industry faces the same challenges as live entertainment venues, but Hanks hopes to start holding smaller, socially distanced events by the summer. VandenBerg says shows have been booked and then “moved many times,” though events are now scheduled in October. The booking industry started generating activity once again about three weeks ago, Hammontree said. He went from getting one to two booking emails a day to 20 to 30. “From the beginning we were prepared to weather this out — we didn’t know it would be 12 months, but we were committed to making it through,” Hammontree said. “We are eager to get back out once again.”

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FOOD BIZ

West Michigan restaurants bend categories to survive tumultuous 2020 By JAYSON BUSSA | MiBiz jbussa@mibiz.com

eff Lobdell’s portfolio of restaurants took a nearly 40-percent hit to its top line revenue during a COVID-19 pandemic-rattled 2020 that took a hefty toll on the hospitality industry. However, one store under the ownership of his Grand Rapids-based Restaurant Partners Management LLC managed a sharp bounce back. Bagel Beanery, located at 455 Michigan St. NE in Grand Rapids, took a similar initial nosedive early in the pandemic, but finished off the year down around 3 percent in revenue, Lobdell said. Bagel Beanery is also the only fast food/fast casual restaurant — often referred to as a quick service restaurant (QSR) — in the Restaurant Partners portfolio. Lobdell’s experience with Bagel Beanery is a microcosm of a trend that has been playing out nationally, where the food industry is seeing a boom in sales for quick service restaurants, a trend that could lead to lasting effects post-pandemic.

Fast Food Rebound The Bagel Beanery location on the Medical Mile is outfitted with an amenity that proved coveted during the pandemic: a drive-thru window. Because of the drive-through capabilities, Bagel Beanery was one of just two restaurants in Lobdell’s portfolio that was able to stay open during the pandemic. The other was The Beltline Bar in Grand Rapids, which traditionally generates 15 percent of its sales from takeout orders. However, despite the drive-through window, Bagel Beanery generated roughly half of its sales from patrons ordering inside the store. This could explain why, despite a healthy bounce back, Bagel Beanery was unable to jump back into the black like many of its QSR counterparts across the country. Fast food franchises were some of the biggest winners of the pandemic and the new dining format of choice. “When everything was shut down — and all the sit-down restaurants closed — the fast food restaurants stayed open,” Lobdell said. “They initially took a bit of a nosedive and a lot of them got big PPP loans and then they started pulling out of it and excelled through the rest of 2020 while the sit-down restaurants continued to suffer.

“A lot of full-service operations have been thinking a lot more about their menu design — how big the menu is, the profitability of the menu — and focusing on that more so than the past.” — DANIEL ESTRADA

Restaurant Volatility Same-store sales for nationwide quick service restaurants (QSR) sharply rebounded last year after an initial slump.

CEO of 86 Repairs SOURCE: BLOOMBERG, MILLERPULSE

“During the second shutdown, the fast food restaurants didn’t skip a beat. They were able to shed some costs of operating dining rooms while still having the efficiencies of the drive-thru going.” Industry numbers underscore the fact that QSR was just about the only winner in the dining industry emerging from 2020. Data from restaurant industry analytics company MillerPulse chronicled the journey through COVID-19, which kicked off with a 20-percent drop in same-store sales for QSR restaurants in April when the pandemic started to grip the country. By November, quick service restaurants managed to creep into the black with a 1.1-percent increase in same-store sales for the month. MillerPulse also projected that performance will improve even more in 2021. Many of the usual suspects saw a fortunate mid to late 2020. McDonald’s Corp. recorded a 4.6-percent increase in same-store sales for the third quarter of last year, while Yum! Brands Inc. reported a 3-percent increase in same-store sales for Taco Bell for the third quarter. Kentucky Fried Chicken, also owned by Yum!, saw samestore sales jump 9 percent in its third quarter. Grand Rapids-based Meritage Hospitality Group Inc. followed suit. An operator of 340 Wendy’s and other restaurants in 16 states, Meritage’s sales grew 10.4 percent for 2020, totaling $516.2 million compared to $467.5 million in 2019. The improved sales happened after the company only developed or acquired three new restaurants. Meritage did not respond to requests for comment. In an earnings report last month, CEO Robert E. Schermer Jr. said: “We achieved record

Full service restaurants tend to be more creative financial results during an unprecedented and and less structured.” challenging year. This was quite an accomplishThis is why, since spring of last year, dinement given the negative impact from COVID-19 in restaurants have worked to mimic the QSR in the first quarter, resulting from mandated clomodel, which isn’t an easy shift in some cases. sures associated with the pandemic. “A lot of full-service operations have been “Our restaurant operating teams and real thinking a lot more about their menu design — estate development group finished the balhow big the menu is, the profitability of the menu ance of the year strong, supported by a resilient — and focusing on that more so than the past,” Wendy’s brand. As we continue to build on our Estrada said. sales momentum with double-digit growth durPlus, w it h sanitation now ing the first quarter of 2021, we are at the front of mind for many focused on executing our critical patrons more than ever, respriorities including employee and FOOD BIZ taurants have been intentional customer safety while delivering NEWS — about emphasizing and showspeed, convenience and affordSponsored by: ing customers the measures they able quality food.” DAN VOS have taken to maintain clean and CONSTRUCTION COMPANY healthy spaces, Estrada said. This Imitating QSR includes everything from proper While quick service restaurants social distancing to embracing faced many challenges in what proved to be a paper or QR code menus. rough 2020, the inherent nature of their business Lobdell has made these and other pivots to models did lend them some favors. keep his dine-in restaurants afloat. He is also Daniel Estrada, CEO of Grand Rapids-based noticing a pent-up demand for in-house dining, 86 Repairs, which provides end-to-end equipespecially now that restrictions on capacity and ment repairs and maintenance processes for rescurfew are easing. While he expects in-house dintaurant groups, works with many of these types ing demand to eventually return to pre-pandemic of restaurants. In fact, 90 percent of 86 Repairs’ levels, he does foresee some long-lasting effects of client base belong to the QSR sector. this new fast food-friendly market. “QSR operators, they’re generally very pro“I think probably dining rooms will shrink in cess-oriented,” Estrada said. “The franchise syssize; meanwhile, exterior patios and outdoor dintems in fast food especially, they have systems ing will grow in size,” he said. “I think fast food for everything. They systematized the creation restaurants, many of them, have even deterof food, the recipes, how the food is served, all of mined they were more profitable without their those things have a lot of process and thought. dining rooms.”

Design Build General Contracting Construction Management

Dan Vos Construction Company Ada, MI

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www.danvosconstruction.com

MiBiz / MARCH 15, 2021

Selma Tucker is passionate about safe and affordable housing. He believes that if a family can’t access the housing market, where most middle-class wealth is held, it will be difficult for them to find stability and prosper. Selma regularly donates to Grand Rapids Community Foundation. He recently named the organization a beneficiary of his life insurance policy. His planned gift will help ensure the Community Foundation’s work to improve the lives of all people in the community continues well into the future. L E T U S H E L P YO U G E T S TA R T E D We’re here to help you understand your options and explore creative ways to leave your mark on the community and causes you love. Give us a call at 616.454.1751. grfoundation.org

MARCH 15, 2021 / MiBiz

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NONPROFIT ORGANIZATIONS

Bethany Christian adoption policy draws cautious optimism from LGBTQ advocates By JOSH SPANNINGA | MiBiz jspanninga@mibiz.com

those policies were not supportive nationally of the LGBTQ community.” Despite Bethany Christian’s recent policy change, GRAND RAPIDS — Bethany Christian Services’ Out on the Lakeshore remains hesitant to partner with announcement this month that it would begin to the organization as it waits to see how committed it is help LGBTQ parents nationwide adopt children to the LGBTQ community, Sorensen said. was a major policy reversal for the global adoption “While I think it’s a great step, I don’t think that agency and, for civil rights advocates, appeared to the view the LGBTQ community has of Bethany be a step toward progress. Christian Services is going to change super quickly However, some from the region’s LGBTQ comor without having that visible proof that the policy munity have met the news with caution and skepreally has changed in practice,” Sorenson said. ticism based on the organization’s long-standing Bethany Christian Services declined to comment policy to not support adoption through LGBTQ parfor this story but issued a prepared statement from ents. Meanwhile, nonprofit experts say the new polSenior Vice President of Public and Government icy reflects a growing shift among faith-based serAffairs Nathan Bult: “For the past 75 years, Bethany vice organizations as public opinion strongly favors Christian Services has never wavered from our misLGBTQ civil protections. sion of demonstrating the love and compassion of In Michigan, Bethany Christian opened adoptions Jesus to children and families. We help families stay for LGBTQ parents two years ago as part of a settletogether, we reunify families who are separated, and ment agreement with the state. At the time, organiwe help vulnerable children find safe, stable homes zation officials said they were “disappointed” in the when they cannot remain in their own. agreement but would abide by it. The recent move “These days, families look a lot different than applies to Bethany Christian operations nationwide. they did when we started. And Bethany is committed to welcoming and serving all of them. “For us to carry out our mission, we are building a broad coalition of people — finding families and resources for children in the greatest need. Behrens Knott McKinney Sorensen The people we serve Holland-based LGBTQ resource center Out on deserve to know they are worthy of being safe, the Lakeshore is “happy to see the policy change, loved, and connected. The need is great, so we are but we also recognize that there’s pain and trauma taking an ‘all hands on deck’ approach.” caused from their past policies,” said Director Jeff Sorensen. “You know, people being turned away ‘Feeling conflicted’ and directed to other agencies, and just not being Grand Rapids Pride Center Interim Director Jazz supported when they’re going through that adopMcKinney shares Sorensen’s caution. tion process.” “I’m feeling conflicted. Yes, I’m happy to see In recent months, Out on the Lakeshore had it absolutely because it already should have been been in contact with Bethany Christian officials over done,” McKinney said. “However, I’m very conflicted how the Christian-based adoption agency could because Bethany Christian Services has a longbetter serve the LGBTQ community, Sorensen said. standing history of harm to the LGBTQ community.” “They initially reached out to us to talk about Bethany Christian Services previously contacted potentially working together on foster families,” the Grand Rapids Pride Center following a settleSorensen said. “We decided not to pursue any sort ment agreement with the state and a 2017 lawsuit of formal partnership with them at the time because brought by the American Civil Liberties Union. The of the existing policies in place, and the fact that lawsuit argued that organizations with discriminatory business practices should not be allowed to receive support from state contracts. Bethany Christian faced a similar lawsuit in Philadelphia. Meanwhile, Catholic Charities West Michigan sued the Michigan Department of Health and Human Services for mandating the service of LGBTQ families. Catholic Charities’ lawsuit is ongoing. Catholic Social Services filed a similar lawsuit in Philadelphia arguing that its religious liberties were being violated through the termination of city contracts. A federal judge denied this religious dis— NATHAN BULT crimination claim in 2018.

“These days, families look a lot different than they did when we started. And Bethany is committed to welcoming and serving all of them.”

Senior Vice President of Public and Government Affairs, Bethany Christian Services

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Growing acceptance With increasing public support for nondiscrimination protections for the LGBTQ community, some

faith-based organizations face increased pressure to serve this demographic, particularly when government funding is in play. According to a poll conducted by the Public Religion Research Institute in 2019, 69 percent of Americans support “broad nondiscrimination protections for lesbian, gay, bisexual and transgender people.” Similar support is growing within the business community, which also views LGBTQ protections as crucial for talent attraction and retention. At the same time, organizations’ positions against LGBTQ inclusion may also face backlash from within the faith community, which can create a uniquely difficult balancing act, nonprofit experts say. “I think we’re just seeing people across the spectrum see that the sky didn’t fall when that change was made, so we’re seeing growing acceptance,” Teri Behrens, executive director of Grand Valley State University’s Johnson Center for Philanthropy, told MiBiz. “I think it’s still a slow process of change, but I would expect some additional organizations will open up their services to a broader range of people. And there will be some who won’t.”

“While I think it’s a great step, I don’t think that the view the LGBTQ community has of Bethany Christian Services is going to change super quickly or without having that visible proof that the policy really has changed in practice.” — JEFF SORENSEN Director, Out on the Lakeshore

Continued fight for equality

While Bethany Christian’s policy change is a win for LGBTQ rights, work continues at the state level to advance non-discrimination policies. LGBTQ and faith Erin Knott, executive director of Equality As well, religion can be a challenging topic within Michigan and Kalamazoo city commissioner, has the LGBTQ community. Out on the Lakeshore offers worked with Bethany Christian in the past to provide its Out in Faith program, in which local LGBTQbasic training on how to best serve LGBTQ clients affirming church leaders discuss issues concernand children. ing faith and identity. In Michigan, the major policy push is around The program “has been kind of an open-ended expanding the Elliott-Larsen Civil Rights Act to opportunity to talk with those leaders and talk include protections for LGBTQ people in the workthrough their own struggles when it comes to faith place, housing and public accommodations. A baland their identity,” Sorensen explained. “And to lot initiative as well as bipartisan legislation introhear from the religious leaders themselves about duced this month seek to do so. why they’re open and affirming in their own “We know that the vast majority of Michiganders beliefs and what the bible says on it, or similar — over 77 percent — support modernizing our state situations.” civil rights laws to include the protections that we’re The Grand Rapids Pride Center also offers a discussing,” Knott told MiBiz. “And we know corpoyouth group alternative for people who may not rations such as Dow, Herman Miller, Steelcase and feel comfortable or welcomed by traditional youth even Amway have all publicly signed on to stategroups. It’s designed to be a safe space for LGBTQ ments of support around amending the Elliottteens to partake in activities and therapeutic disLarsen Civil Rights Act or have increased the inclucussion. Tying into the Bethany Christian policy sion and internal benefits that they provide to their change, McKinney notes that LGBTQ youth are at employees.” a high risk of abuse in foster homes. Knott believes the amendment now has the “A lot of people like to think that LGBTQ kids are bipartisan support needed from both the House just acting out. I don’t know how many times I’ve and Senate to pass. However, it faces opposition heard: ‘Oh, it’s because they were sexually abused from some Republican lawmakers — including that they’re questioning their gender or questionRepublican Senate Majority Leader Mike Shirkey ing their sexuality,’” McKinney said. “No, that’s not — if the expansion doesn’t include religious it at all. It’s actually the opposite, which is that a lot exemptions. Knott led the city of Kalamazoo’s of LGBTQ kids or youth are targeted push to w ithdraw funding for for those types of behaviors. It’s not Southwest Michigan First last the other way around.” month after the organization’s hirNONPROFITS McKinney is cautiously hopeing of former GOP House Speaker NEWS ful that Bethany Christian will Lee Chatfield who held a similar — Sponsored by: continue taking steps to better position as Shirkey while in the GRAND RAPIDS ser ve a communit y that it has Legislature. COMMUNITY rejected in the past and repair “As I’ve stated before, lawmakFOUNDATION relat ionsh ips. But McK i n ne y ers who refused to take action for admits it won’t be easy. equal rights have a final opportu“You can’t expect us to run to you. You have to nity right now to be on the right side of history, come to us,” McKinney said. “You have to reach out, but we’re not going to support any bills or amendyou have to be consistent and don’t be scared that ments that allow for a license to discriminate,” you may be rejected. Because again, we have to proKnott said. “Michigan is better than this, our peotect ourselves as well.” ple are better than this.” MiBiz / MARCH 15, 2021

Upjohn economist says latest stimulus needed to avoid slow recovery A Q&A with Susan Houseman, vice president and director of research at the W.E. Upjohn Institute for Employment Research

he Biden administration’s $1.9 trillion American Rescue Plan Act is a big and bold injection into the U.S. economy that critics — such as all GOP members in the House and Senate who voted against it — have called unnecessarily expensive. However, supporters say the broad support for state and local governments and targeted relief to individuals and families will provide both immediate and long-term benefits. Susan Houseman, vice president and director of research at the Kalamazoo-based W.E. Upjohn Institute for Employment Research, said while the latest stimulus reflects Democratic spending priorities, it will also help to ensure a swift post-pandemic economic recovery. Houseman spoke with MiBiz a day after Congress approved the legislation and before it was signed by President Biden. As an economist, what’s your reaction to the $1.9 trillion American Rescue Plan Act? Well, it’s big. One of the surprises for many people coming out of the recession is that, in many respects, the economy has fared a bit better than we expected. One surprise is that revenues to state governments didn’t decline as much as we anticipated. The unemployment rate was higher than we’ve ever seen since the Great Depression in the 1930s, but it came down sharply. Poverty levels have actually declined. You can do two takes on that: One is that maybe we don’t need this big spending package. The second is that the prior stimulus packages actually worked. If you’re an economist, one big challenge is: How can we smooth over recessions and the natural hits the economy takes for a variety of reasons? How can we get over the hump and minimize the damage? Not to minimize what people have gone through, but (the pandemic) is not as bad as one might have expected (economically). That’s the justification for another large stimulus package — the other one is about to run out and there’s evidence that it actually worked. We’re coming out of the pandemic, but things will be bumpy as the economy restarts, so some sort of stimulus measure is still needed. The Biden administration’s stimulus has drawn comparisons to the Obama administration’s during the Great Recession in 2009 — specifically that it goes farther, albeit because of political realities. But how does this Democratic stimulus compare to 2009? It’s a lot more aggressive and larger. The unemployment rate and impact of the pandemic was greater than the Great Recession, so it warranted a larger response. If you dial back to the Great Recession, the recovery was very tepid, slow and drawn out. There were long periods of mediocre job growth and relatively high levels of unemployment. That’s what we’re trying to avoid this time.

In addition to direct support for state and local governments, the latest stimulus package is also targeted at workers, families and low- to moderate-income individuals. Previous pandemic relief included targeting specific industries. How will we see this dynamic play out? It probably reflects to some degree the change in administration and who’s driving the bill this time. If you look at the Democratic priorities, to some degree, they are trying to get anti-poverty measures built into this as well. It’s an agenda that believes there’s a greater need for stimulus and greater need for helping those who are poor and lower-middle class and assisting them through this difficult time. I think there’s a larger agenda here, too, with the child care subsidies but also the child care tax credits that are increasing next year by 50 percent for many families. Those are designed to reduce very high child poverty rates in this country that have broader policy motivations beyond the pandemic. The new stimulus plan also extends $300 in federal monthly unemployment insurance benefits through the summer. More broadly, what has the pandemic taught us about states’ unemployment insurance systems? The pandemic has shown that the unemployment insurance system is, as some would characterize, broken. Relatively few people nationwide actually accessed the system and often benefits were not sufficiently generous to tide people over a true, severe recession. The whole experience of unemployment insurance during the pandemic has underscored the need for unemployment insurance reform. What do those reforms look like? It takes two sides: We need to make benefits more adequate and need to expand them and get more consistent replacement rates for individuals. It’s expanding benefits but also the extent to which people are eligible to receive unemployment insurance benefits. One thing we saw for the first time ever during the pandemic is that benefits were opened up to individuals who normally did not qualify, including the selfemployed. We also saw the take-up of those benefits was huge — we can debate how much of that was fraud. Of course to have adequate benefits, you have to finance them, and that’s the other side. Most people who advocate for unemployment insurance reform recognize the need to address financing issues. Invariably, that means raising unemployment insurance taxes. People have to be willing to bite the bullet to do that. Hopefully our experience during the pandemic and Great Recession has underscored the need for unemployment insurance reform. What we did during the pandemic was kind of a Band-Aid. Interview conducted and condensed by Andy Balaskovitz. Courtesy photo.

MARCH 15, 2021 / MiBiz

IN THE NEWS M&A

n Melbourne, Fla.-based L3Harris Technologies Inc. (NYSE: LHX) signed a definitive agreement to sell its Combat Propulsion Systems, which is based in Muskegon and employs about 350 people, to RENK AG for $400 million in cash, according to a statement. Combat Propulsion Systems generated $230 million in annual revenues for the $18 billion L3Harris, which was formed when defense and aerospace manufacturers L3 Technologies and Harris Corp. merged in 2019. The deal positions L3Harris “to further focus on its core technologies and execute its strategic priorities,” L3Harris Chairman and CEO William Brown said in a statement, which noted the proceeds from the divestiture would be used for share repurchases. Based in Augsburg, Germany, RENK is a manufacturer of automatic transmissions and gearing for the armored vehicle, defense and civil marine, energy production, plastics, and oil and gas sectors. RENK employs 2,600 employees globally and generated 559 million euros in revenues in 2019, according to a statement. n Traverse City-based Naveego Inc., a provider of cloud data integration solutions, was acquired by Aunalytics Inc., a South Bend, Ind.-based data platform company. The deal combines the two firms’ capabilities to build analytic databases and machine learning algorithms for clients, according to a statement. Naveego has served firms in the financial services, health care, insurance and manufacturing industries. Aunalytics executives told the Traverse City Record-Eagle that the company plans to keep the Northern Michigan location and add more positions. Traverse Citybased venture capital firm Boomerang Catapult LLC previously invested $500,000 in Naveego in 2017, according to the Record-Eagle. Aunalytics also has a location in Kalamazoo stemming from its prior acquisition of the former Secant Technologies. Terms of the Naveego deal were not disclosed. n Wood products manufacturer UFP Industries Inc. recently expanded its presence in the Australian market with an acquisition made by one of its wholly owned subsidiaries. Industrial packaging products manufacturer UBEECO Packaging Solutions — which is owned by UFP Industries and based in Sydney, Australia — announced that it has acquired J.C. Gilmore Pty Ltd, also known as Gilmores. The company, which operates out of a distribution facility located in Port Melbourne, Australia, is a distributor for the industrial and construction industries, specializing in packaging tapes, stretch films, packaging equipment, strapping and construction protection products.

EXPANSION

n Conveyor Concepts of Michigan LLC, which serves the e-commerce, distribution and food and beverage industries, recently announced that it was investing $1.3 million in a 30,000-square-foot expansion to its facility in Coopersville, located in the Midway Industrial Park. This is the second expansion in the last four years for the manufacturer of structural steel and material handling equipment.

HEALTH CARE

n Mary Free Bed Rehabilitation Hospital signed a joint operating agreement to manage the outpatient physical, occupational and speech therapy services

at Munson Healthcare’s Cadillac and Grayling hospitals. Mary Free Bed at Munson Healthcare expands the Grand Rapids hospital’s rehabilitation capabilities and retains a team of therapists. Mary Free Bed began working with Munson Healthcare in 2015 and strengthened the relationship with more inpatient and outpatient rehabilitation services in 2019. The inpatient unit in Traverse City treated 395 patients last year. n Grand Rapids-based Gateway Pediatric Therapy opened a second Mid-Michigan location in Owosso and its 10th overall. The facility offers customized applied behavior analysis treatment for individuals diagnosed with autism spectrum disorder. Gateway Pediatric Therapy also lists clinics in Grand Rapids, Lansing, Southeast Michigan, Toledo, Ohio and Duluth, Ga. n Spectrum Health Big Rapids, Spectrum Health United Hospital in Greenville and Spectrum Health Zeeland Community Hospital were among 14 hospitals statewide to earn 2021 Hospital Patient Safety Awards from the Economic Alliance for Michigan. The award recognizes hospitals that consistently record high marks and improvements in patient safety and quality of care in semi-annual report cards issued by The Leapfrog Group, a national advocacy organization for patient safety.

ECONOMIC DEVELOPMENT

n The Kalamazoo County Board of Commissioners voted 7-4 to suspend its 2021 funding to Southwest Michigan First as the fallout continues over the organization’s brief hire of former GOP House Speaker Lee Chatfield as CEO. The county’s suspension of its yearly contribution follows the city of Kalamazoo and some community organizations that cut ties with the economic development organization after it hired Chatfield. Chatfield resigned after a week on the job following outcry over his appointment. n A medical cannabis dispensary under construction on Grand Rapids’ northwest side is expected to be finished by mid-June. The planned JARS Cannabis dispensary at 1815 Alpine Ave. NW is being built by CD Barnes Construction Inc. Extensive demolition work of the formerly vacant 1,250-square-foot building that was built in 1950 is completed, and the Grand Rapids-based construction company is currently working on renovations. The property formerly housed Grezak Insurance Agency Inc., and was purchased for $1.42 million on Aug. 12, 2019 by Alpine Ave. Holdings LLC. The sale price was more than 14 times what the previous owners paid for the property in 2015, according to property records, highlighting the significant effect licensing cannabis stores can have on properties where they are allowed to operate.

AGRICULTURE

n The Michigan Department of Agriculture and Rural Development and the state’s Agriculture Preservation Fund Board have awarded $1.8 million in grants that will eventually lead to the preservation of 730 acres of farmland. The grants are allocated to seven local farmland preservation programs to close on permanent conservation easements, designed to create large blocks of preserved farmland. West Michigan preservation programs that will benefit include: Kent County ($201,294), Ottawa County ($157,500) and Barry County ($130,000). Visit www.mibiz.com

UPCOMING ISSUES

3.29.2021

Utilities & Energy M&A Roundtable

Contract Deadline: 3.17.2021

4.12.2021

Drinking Economy Craft Beverage Roundtable Contract Deadline: 3.31.2021

4.26.2021

Culture & Generational Change Contract Deadline: 4.14.2021

5.10.2021

Diversity/Equity/Inclusion Commercial Lending Quarterly: Commercial Real Estate Lending Update New political boundaries to emerge in 2021

Jane Ghosh takes helm at Discover Kalamazoo

PAGE 16

PAGE 22

JANUARY 18, 2021 • VOL. 33/NO. 7 • $3.00

Despite new state law, no solid plans for Kalamazoo event center

SERVING WESTERN MICHIGAN BUSINESS SINCE 1988

www.mibiz.com

HELP ON THE WAY More flexibility comes with latest round of PPP loans

By KATE CARLSON | MiBiz kcarlson@mibiz.com

Kalsec earns B Corp status JANUARY 4, 2021 • VOL. 33/NO. 6 • $3.00

LET THE GAMES BEGIN

Cybersecurity standards to reshape defense manufacturing PAGE 4 OCTOBER 26, 2020 • VOL. 33/NO. 1 • $3.00

Managed service providers play key advisory role in shift to work-from-home By JAYSON BUSSA | MiBiz jbussa@mibiz.com

ichard Reiffer and his staff at Grand Rapids-based Fusion IT LLC tend to take a proactive approach when it comes to advising clients on digital strategies. So when COVID-19 transitioned into a full-blown pandemic in early March, the team was already telling the midsize companies it works with to start facilitating effective remote work. Fusion IT, which works with businesses Reiffer on an ongoing basis as a managed service provider (MSP), even developed white papers to serve as a reference for effective work from home strategies. “We started warning our clients early and most of them acted on it to get equipment if they didn’t already have equipment capable of running their remote work,” said Reiffer, the company’s vice president of strategic initiatives. “For a while there, the backlog to get laptops was about six months.” The ongoing pandemic has ushered in a tidal wave of remote working for companies that were either forced to send workers home or did it out of precaution. Many of these companies’ MSPs have become the brain trust for workfrom-home setups and strategies.

Uneven footing With remote work a growing trend before the COVID-19 pandemic, many companies already had a rough infrastructure in place to make the transition smoother, Reiffer said. Still, some businesses had to swiftly make up ground while some of it was dictated by their respective industries. See WORK FROM HOME on page 12

KALAMAZOO — A new funding tool recently signed into law is intended to help finance an event center in downtown Kalamazoo, but it’s unclear if there is a desire or solid plans to move forward with the venue. House Bill 4816 was sponsored by former state Rep. Brandt Iden, R-Oshtemo Township, and was signed into law by Gov. Gretchen Whitmer on Dec. 30. The Regional Event Center Financing Act creates a financing program for potential venue projects in Kalamazoo, Ottawa, Muskegon, Ingham and Washtenaw counties. “The impetus for this legislation was basically to allow access to another economic PAGE 22 development tool that larger communities have like Grand SERVING WESTERN MICHIGAN BUSINESS 1988 www.mibiz.com Rapids and Detroit,” IdenSINCE told MiBiz. “I have always supported an event center downtown because I believe that Iden if urban core centers don’t grow, then they have a tendency to just die out.” Iden was term-limited out of office at the end of 2020. He served on the Kalamazoo County Board of By JAYSON BUSSA | MiBiz Commissioners for two years before he was elected jbussa@mibiz.com to the state House of Representatives in 2014. “The bettors event center onlycasino ever discussed ILLUSTRATION: KAYLEE VAN TUINEN ports and was online gamers found inthemselves concept. There were formalized sitting onnever the sidelines in plans Michigan for orall a formal agreement about thewas sizeaand scope of hope of 2020, even when there glimmer ofthat the project,” said. “It’s always been pre- before the stateIden would launch online gaming liminarily the year discussed was out. as a high-level concept for the community.” However, people seeking to place wagers from computThedevices new legislation requires center weeks. ers and mobile can likely do soan inevent the coming programthe to describe theisproposed “We’refinancing ready when industry ready,”size, Michigan location,Board cost and financing structureDirector of the proGaming Control (MGCB) Executive Rick Kalm By MARK SANCHEZ | MiBiz has a |relatively posed facility, and to specify an assessment to be By ANDY BALASKOVITZ MiBiz short applicatold MiBiz. tion window based on previous the program, which can’t exceed abalaskovitz@mibiz.com That’slevied whereunder this high-profile issue stands at the4 start of msanchez@mibiz.com demand. percent county-wide hotel room charges. The period 2021, weeks afterofstate officials waived a 15-day review he latest stateRAPIDS effort — Randy Applications for the $55 would effectively be a small increaselicenses GRAND Thelen describes the milon sportsassessment betting rules and then issued provisional to provide financial Michigan to a county’s hotel lodging tax.just eight days later. The COVID-19 pandemiclion as an “inflectionSmall point”Business that for 15 different platform providers aid tocan Michigan small Survival Grant Program open Thethe financing defines an event center as a shift the course of economic development in at actions paved way foract online gambling to go live. businesses and enter9 a.m. on Jan 19. The application convention hall,awaiting auditorium, stadium, music— hall, West Michigan. The MGCB is now each platform including tainmentThelen, venues who that wasprocess closes noonas onthe Jan. 22. PAGE sites 26 like DraftKings and FanDuel Sportsbook — to selected last at month popular See KALAMAZOO EVENT CENTER on page 3 of their are ailing from thenew COVID-19 panand live music president and CEOEntertainment of The Right Place Inc., undergo independent testing to ensure the integrity restrictions venues can apply formore the $3.5 says the challenges of 2020 will likely create games. This extensive www.mibiz.com vetting ensures that platforms are demic and resulting

Regulators, platforms, consumers gear up as online SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 gaming prepares to launch

using geolocation properly and are able to properly identify a bettor so that bets are not placed by someone who is underage or not located in the state of Michigan.

competition among cities, and generate opportunity for a wider umbrella that includes equity as a key priority in economic development. “Every region in the world is wrestling with what’s next,” said Thelen, who’s planning his move back to Michigan from Denver, where he’s currently senior vice president of Downtown Denver Partnership Inc., the city’s Thelen economic development SEE agency. PAGE 4“The markets that can come together and move forward together are going to be winning markets and be able to leapfrog some of the competition.” During previous recessions, Thelen said Denver “doubled down, invested in itself,” which allowed it to “accelerate out of recession and bypass that competition.” He’s leaving a “hyper growth market” in the Mile High City that’s attracted investments particularly from large tech firms such as Google, Twitter and Facebook. “Virtually any tech company you can imagine has put up a sizable outpost in Denver,” Thelen said. “It’s a healthy reminder that the product of a region matters, and talent and placemaking drives business decisions. There’s been a lot of good movement in that area in West Michigan in the last 10-15 years. We’ve got to continue that.”

See ONLINE GAMING on page 3

developers say is critical for both businesses and households. Eliminating the so-called “digital divide” must become as important as extending electrical and telephone service into rural markets in the 1930s, Birgit Klohs, CEO of The Right Place Inc. in Grand Rapids, said durKlohs ing a recent virtual panel discussion at the Michigan Economic Developers Association’s annual conference.

shortage among top ag priorities this year

The issue has become increasingly important during the pandemic as companies conduct business v irtua lly and students learn ichigan and the nation need the same remotely, Klohs said. The pandemic brought kind of concerted effort to deploy greater awareness to the issue and how in some broadband internet access as 90 years areas the digital divide “is more like the Grand ago when America set out to electrify Canyon,” Klohs said. PAGE 11 rural areas following the Great Depression, eco“Our children shouldn’t be sitting in cars in the nomic developers say. parking lot of a restaurant to get Wi-Fi so they can The COVID-19 pandemic has heightened the do their homework. I think that’s just Third World,” need to fix a lack of affordable high-speed internet Klohs said. See MEDA on page 3 access in some markets of the state that economic By KATE CARLSON | MiBiz hold promise for the city’s transforkcarlson@mibiz.com mation. The projects also involve a variety of local interests and invesMANISTEE — The lakeshore city tors, including regional developers, of just more than 6,000 people is the local American Indian tribe and seeing multiple new downtown a nearby community college. developments that local officials “There are a lot of pieces when and investors say are critical for you’re transforming a downtown,” reinvigorating empty storefronts, said Scott Ward, president of West diversification and emerging betShore Community College, based ter off after the pandemic. about 20 miles south in Scottville. In Manistee, two planned The college and community A vision for the Spirit of the Woods Manistee Gateway Project prehotels, a larger downtown “gategroups have been instrumental By KATE CARLSON | way,” MiBizand a new to —education such housing, sented to city officials in September. COURTESY RENDERING centerincluding See MANISTEE on page 9 kcarlson@mibiz.com high-density rentals. The Lansing-based Michiest Michigan citgan Municipal League has P E R I O D I C A L ies are examinstepped in to help local goving new poliernments solve their housing cies to expand puzzle. The MML plans to issue affordable housing and create guidance in early 2021 on code a supportive environment for reform that can help increase developers as studies show an affordable housing units. ongoing need for more units. That includes incentivizing The renewed discussions affordable housing developers this year among city officials through tools like brownfield PAGES 10-11 in Grand Rapids, Holland, credits, streamlining zoning SEE PAGE 13 Kalamazoo and Grand Haven codes and a refined applicacome as the COVID-19 pantion process. demic has driven high unem“What happens is you have Drew Phillippy is president of Grand Rapids-based Purple East, which ployment and financial strain, developers sinking a lot of recently emerged from bankruptcy under a new law meant to help small raising concern among offimoney into the process and businesses. cials who say it could exacerit makes it harder for them to bate the need for affordable build housing developments housing. affordably,” said MML Policy Cities are attacking the Research Director Shanna problem in a variety of ways, Draheim. including revamping outdated Meanwhile, studies conzoning codes to make it eastinue to show a need for affordier for developers to include able housing throughout the affordability in housing develregion. A recent Housing Next opments, as well as prioritizing study shows at least 5,340 more affordable or mixed-use housrental units and 3,548 more For small businesses facing bankruptcy, the new ing for incentive tools such as owner-occupied units are brownfield credits. needed in the next five years federal Small Business Reorganization Act is proving Despite the effort being in Grand Rapids to meet housto be a cost-effective and timely lifeline. A Grand made to add more housing ing demand. Housing North, a Rapids retailer offers an early test case. SEE PAGE 14 stock at varying price points, nonprofit that spans 10 counhousing advocates and local ties in the northwestern Lower planners are still confronting Peninsula, showed last year STORY BY ANDY BALASKOVITZ // PHOTO BY KATY BATDORFF a stigma associated with — the region would need about See HOUSING on page 11 and community opposition

million Stages Survival Grant Program beginning at 9 a.m. on Jan. 21. The applications window for Stages grants closes at noon on Jan. 28. The small window for the Small Business Survival Grant Program stems from an expectation that demand will easily outstrip available funding

Natalia Kovicak takes helm at GR Econ Club

Panel: Rural broadband development should mirror electric gridlabor build-out Trade, By MARK SANCHEZ | MiBiz msanchez@mibiz.com

he new round of federal Paycheck Protection Program loans includes a number of changes from the prior funding intended to aid small businesses hurting from the COVID-19 pandemic. As with the first round last spring and summer, borrowers working through a lender can again use PPP funding from the U.S. Small Business Administration to pay operating expenses. The new $284 billion PPP round extends eligible expenses to property damage incurred in last summer’s civil unrest that was not covered by insurance, supplier costs and worker protection expenditures. As well, eligible expenses now include costs to adapt to the pandemic such as facility modifications, software and cloud computing and delivery services. See PPP LOANS on page 12

Thelen to lead The Right Place amid economic development ‘inflection point’ State expects ‘extremely high’ demand for $58.5M in small business COVID-19 relief

5.24.2021

Food Systems

Contract Deadline: 5.12.2021

By MARK SANCHEZ | MiBiz msanchez@mibiz.com

New Priority Health leader on accelerating change in health care

PAGE 7

Contract Deadline: 4.28.2021

because of a “far, far greater need that exists than any amount of resources that we are facilitating,” Michigan Economic Development Corp. CEO Mark Burton said last week. Grant programs last year to provide relief for thousands of small businesses statewide quickly See MEDC GRANTS on page 10

6.7.2021

Real Estate: Multifamily Contract Deadline: 5.26.2021

6.21.2021

Transportation

Contract Deadline: 6.9.2021

INSIDE:

Putting pieces together in Manistee Industry 4.0 Two hotels, downtown education center lock in community investments in anticipation of post-pandemic recovery, local officials say

West Michigan cities weigh policy changes to bolster affordable housing

Telehealth soars during pandemic, sparking new health coverage options

INSIDE:

M&A Deals in Review: 2020

See THELEN on page 12

Contract Deadline: 6.23.2021

7.18.2021

West Michigan Tribal Economy Contract Deadline: 7.7.2021

8.2.2021 Insurance

INSIDE:

Mergers & Acquisitions PAGE 7

Industry 4.0: Automation

New chapter for Chapter 11

Solar industry on edge

7.5.2021

Contract Deadline: 7.21.2021

SEE PAGE 16

8.16.2021

Automotive Supplier Outlook Commercial Lending Quarterly: Growth Lending Update Contract Deadline: 8.4.2021

8.30.2021

Education/Talent Development Contract Deadline: 8.18.2021

sales@mibiz.com | editor@mibiz.com 616-608-6170

Visit www.mibiz.com

MiBiz / MARCH 15, 2021

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