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Two northern Michigan businesses recently announced they have sold majority ownership stakes to out-of-state private equity firms. Leaders for both Kilwins and Great Lakes Potato Chips said the influx of investment cash will allow them to supercharge future growth.
Kilwins, owned by Don and Robin McCarty, was acquired by Levine Leichtman Capital Partners (LLCP), a Los Angeles-based firm. The LLCP portfolio of business holdings includes numerous food companies with similar franchise-type business models as Kilwins, such as Tropical Smoothie Cafe and Bertucci’s Italian Restaurant. Currently, Kilwins has more than 150 locations spread throughout 25 states. Twenty-three of those locations are in Michigan, including a shop in downtown Traverse City and the original location in Petoskey. The McCartys will reportedly retain an ownership interest.
Great Lakes Potato Chips, owned by the Girrbach family in Traverse City, has sold majority ownership to a pair of Chicago-based private equity firms The lead partner is LaSalle Capital, an investment company with a background in working with food and beverage manufacturers. The other partner is Lightspring Capital, which focuses on investing “in support of founder and family-owned businesses which are experiencing a transition in ownership.” The Girrbachs will retain a minority ownership stake with CEO Chris Girrbach staying on in the leadership role.
Swogger Estate Law has opened at 511 Depot View Dr., Suite 19 in Traverse City.
Lawyer Michael J. Swogger, who brings more than 33 years of experience to the practice, focuses on estate law, wills, trusts, deeds, powers of attorney, guardianships, and conservatorships; swoggerestatelaw.com.
Traverse City-based marketing agency
PB&J recently won 18 awards at the 2023 Great Lakes Bay Region ADDY Awards. This includes 12 gold, four silver and two special judge’s awards recognizing creative excellence in advertising. All of PB&J’s work was for northern Michigan clients, including Bay Area Transportation Authority, Besser (Alpena), Home Builders Association of the Grand Traverse Area, Peterson McGregor Insurance, Substance-Free Coalition of Northwest Michigan, Third Coast Bakery, and United Way of Northwest Michigan. Also, Greenlight Marketing of Traverse City took home 9 ADDY awards for its work with the North Branch Outing Club, a historic fishing and hunting lodge in Grayling.
NEW LOCATION FOR GTI
Grand Traverse Industries, which has served the community by providing job training, supported employment, and day programs for intellectual and/or developmental disabled people for nearly 50 years, has a new building at 2170 Traversefield Dr. in Traverse City, a new logo and new website: grandtraverseindustries.com.
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NOW IN TC
X 45 Protection, LLC, a new Traverse City-based home security and protection, is now servicing the greater northwest Michigan region. The company helps homeowners determine what equipment they need, where to place the components and coaches them on installation. It also offers executive/close protection for high-value and high-risk clients and home safe room design; x45protection.com.
WOMEN IN CONSTRUCTION
EVENT APRIL 27
Tru by Hilton has opened at 3572 N US-31 South in Traverse City, across from Panera Bread in Garfield Township. The project had been in the works since 2019 and was delayed first by the pandemic and later by kinks in the supply chain and the construction industry as a whole. North Michigan Hospitality Management, the group behind the hotel, will now move forward with a second hotel next door to the Tru: a four-story, 95-room Fairfield Inn & Suites by Marriott.
Windemuller, a Michigan-based advanced technical and design services provider, and other area construction leaders are hosting “Women in Construction: Diversify Your Crew” on April 27 in conjunction with National Women in Construction Week. The free event is open to all. Join in-person (Delamar Hotel in Traverse City, 3pm-5:30pm ) or via Zoom (4pm-5pm). The event will highlight successes and acknowledge the barriers often faced by hardworking women in a historically male-dominated industry.
Lisa Leedy of the Builders Exchange of Northwest Michigan will moderate a panel that includes Tonya Wildfong of Team Elmer’s, Shari Fouch Prevost of Surfaces, Inc., and Devin Hill of Windemuller.
Basketball Association. The partnership includes a co-branded wine and a Pistons - Soul Squeeze wine club, as well as a Soul Squeeze-branded bar in the Piston Performance Center.
Wandr North, a business specializing in adventure photography and videography, has opened in Traverse City. Owned by Josh and Siena Larson, it offers everything from portrait shoots for individuals to promotional videos for businesses. Learn more at wandrnorth.co.
Dreams and Themes Sleepovers (dreamsandthemessleepovers.com), a themed sleepover party business, has opened in Traverse City. The company brings the equipment – teepees, air mattresses, sheets and blankets, lanterns and more – and sets everything up for a sleepover party. After the party, the company comes and collects all of the items. The company is owned by Tara Rybicki and Rhiannon Barr.
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• In Antrim County, 14.3% of children are food insecure?
• In Benzie County, 8% of residents use SNAP (food stamps)?
• In Grand Traverse County, 9% of households visit food pantries?
• In Kalkaska County, 17% of children qualify for federal food programs?
• In Leelanau County, 7% of households are served by the Northwest Food Coalition members?
The Beadle building in downtown Traverse City, most recently home to Mackinaw Brewing Co., has been purchased by Jon Carlson, owner of local restaurants including North Peak Brewing Co., Jolly Pumpkin, Kilkenny’s, Blue Tractor and Mission Table. The building and restaurant were listed for $4.95 million last April. Carlson closed on the property for $3.2 million. Plans for the space haven’t been announced.
Portable Storage Solutions is now open at 2550 Cass Rd. in Traverse City after purchasing Smith Brothers Leasing, which had been in the storage business locally for more than 40 years. It provides storage containers, mobile offices or semi-trailers that can be delivered to businesses, job sites or homes. The units are available to rent or buy; portablestoragesolutionsllc.com.
Michigan-based Action Water Sports, with a dealership in Traverse City, recently announced that Continuum Ventures, the investment business of the Doug and Maria DeVos family, is investing in the company as a strategic partner. The company specializes in MasterCraft, Cobalt, Barletta and Crest brands. In addition, it offers a wide range of services, including certified service, parts, detailing and storage, as well as marine and water sports lifestyle products and apparel. Jerry Timmer, general manager of the Traverse City location, will continue in that role.
Soul Squeeze Cellars in Lake Leelanau is now the official wine of the Detroit Pistons after joining forces with the National
United Way of Northwest Michigan has launched a new TriShare.org website providing employers, employees, child care providers and community members with a single source to obtain answers about the MI TriShare Child Care Pilot Program. TriShare, an employer-based benefit program, is a new approach to increasing access to high-quality, affordable child care for working families while also helping to retain talent and removing one major barrier to employment. Also, Networks Northwest has received a $150,000 planning grant from the Early Childhood Investment Corporation to expand access to quality, affordable care for working families. The funds will support a Regional Child Care Planning Coalition.
Four local leaders who have been appointed to state boards and councils by Gov. Gretchen Whitmer are set to represent this region in housing, agriculture and non-motorized trails. Warren Call, president and CEO of Traverse Connect, was appointed to the Michigan State Housing Development Authority Board. Paul Hubbell of Orchard View Farms in Williamsburg and David Smeltzer of West Wind Orchards were reappointed to the Michigan Cherry Committee, representing District 1 tart cherry growers. Finally, Brian Beauchamp, communications and policy director at TART Trails, has been appointed to represent non-motorized trail users on the Michigan Trails Advisory Council. Beauchamp serves as chair.
Bob Brick, broker and owner of RE/ MAX Bayshore Properties, is the 2022 recipient of the Distinguished Service Award from Traverse Connect. In addition to his 50-year career in real estate, Brick has decades of volunteer service to nonprofit organizations and foundations, including the NMC Board of Trustees, the NMC Foundation, Venture North, the Traverse Area Foundation and Brickways.
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Traverse City’s tech scene is fast becoming Michigan’s worst-kept secret.
The rest of the state and Midwest now have their eyes open to the excitement and incredible momentum we have built over the past several years. As with many developments since 2020, the pandemic only served to accelerate significant changes already underway.
The word is out that our region is a great place for digital entrepreneurs to move and build their companies.
The local technology sector has reached a stage where company executives, support organizations, educational institutions and investors reinforce and build off each other’s work in a true entrepreneurial ecosystem. FrontierUS, FirstIgnite and Starboard Solutions are just a few growing firms making our region a technology destination for business and talent.
Companies like the above are building on the success of Atlas Space, Naveego/Aunalytics, and Coherent, with support from 20 Fathoms, NMC, and Michigan Tech’s Grand Traverse Research Center.
Recent winners at the TCNewTech monthly pitch competitions include startups supporting the hospitality, healthcare, education, entertainment and recreation industries. Many recent monthly pitch contest winners have their feet in one of these industries but also another – water innovation and the blue economy. Traverse Connect and our partners believe water technology should and will play a central role in the continued expansion of our economic ecosystem.
To support and encourage these exciting developments, local organizations – including Newton’s Road, Northern Michigan Angels, TCNewTech, 20Fathoms and
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Traverse Connect – are collaborating to host the second annual Northern Michigan Startup Week 2023 in Traverse City from May 5 to 11, with a focus on water innovation. The week-long event celebrates entrepreneurship, innovation, and the growing startup community in northern Michigan.
Northern Michigan Startup Week (NMSW) is a mix of startup company pitch events, discussion forums and informational networking that highlight the role of technology and startups in our regional economic ecosystem. The week begins with TechStars Startup Weekend, a three-day educational program where aspiring entrepreneurs learn about pitching to investors, business model creation, prototyping, designing and market validation in a friendly and supportive team environment.
NMSW also offers high school and college students opportunities to explore entrepreneurship, develop new business ideas and present their pitches on stage at the City Opera House. The high school competition includes local student teams and is hosted by the STEM education organization Newton’s Road on May 8.
The following night, TCNewTech hosts the University Pitch Showdown, which features college and university students across Michigan with idea-stage business concepts and early-stage startups. Confirmed participants include students from universities across Michigan – from Wayne State University to Northern Michigan University.
The week continues with several events focused on tech’s role in our regional economic ecosystem. The Northern Michigan Angels will host the Seeding Startups event, bringing together investors and founders to share the ins and outs of early-stage investing, the role it plays in the
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regional ecosystem, and what’s to come for the future of our regional economy.
20Fathoms, northern Michigan’s hub of entrepreneurship, will then put on the Startup Expo & Community Celebration that celebrates our startup ecosystem’s regional innovators, entrepreneurs and supporters with a business expo and awards presentation.
The week’s capstone event on May 11 –Innovation in the Great Lakes: The Blue Economy – reflects our region’s opportunity to build a bright future of blue innovation and freshwater advancements by pairing our geography with our burgeoning freshwater business economy.
NMC’s marquee programs (Water Studies and Marine Technology), Michigan Tech’s local expansion and the region’s precious freshwater resources make the Grand Traverse region well-positioned to be the global epicenter for freshwater research, industry and innovation.
The Blue Economy event features a panel of startup founders engaged in water sector innovation. Enspired Solutions is an early-stage company focused on removing and destroying PFAS chemicals. Our local champion, Hybrid Robotics Inc., designs and manufactures marine robotic solutions for research and inspections. The early-stage firm, Lilypad Labs Inc., is a solar-powered recreational boat platform.
They will be joined by Michigan Rise, an early-stage venture capital fund that invests in high-tech startups across Michigan. The fund is a collaboration between the Michigan Strategic Fund and Michigan State University Foundation’s Red Cedar Ventures.
Are you excited yet? I encourage you to attend a Northern Michigan Startup Week
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preview event at Cherry Capital Airport on April 11 from 8:30am-11:30am. It provides an opportunity to meet with local businesses and representatives from the regional startup community, learn about events and programs happening during NMSW 2023, and an upcoming blue economy grant opportunity. Attendees will have an exclusive opportunity to purchase discounted tickets for NMSW events.
The TVC preview event is also an opportunity to invite your contacts and business associates from outside our region to get them engaged and excited about our economic momentum. We all know friends and colleagues who should bring their business success, innovative ideas or investment capital to Traverse City. Take this opportunity to promote NMSW to your network inside and outside the area. Invite them to our beautiful airport to learn what all the excitement is about.
Warren Call is the president/CEO of Traverse Connect. Contact him at warren.call@traverseconnect.org
On the cover from left to right are Quinn Raftery, Shelly Smith, Alex Adams, and George Powell.
The March TCBN article “Passing the Torch” incorrectly spelled Branko Gegich’s last name as “Geigich” and failed to mention Damian Lockhart, one of his successors in leading the West Bay Group. We apologize for the errors.
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Traverse City’s Cambium Analytica is one of the leading cannabis and hemp testing companies in Michigan and perhaps the United States.
Cambium Analytica’s ambitious growth plan encompasses testing services for the food industry, the world of natural pharmaceuticals and more.
The company got to that point quickly: After starting up in 2019, Cambium hit a 300% growth rate between its first and second years, and saw another 30% growth spurt between 2021 and 2022. That quick maturation has occurred due in part to the massive amount of investment dollars that have flooded Michigan’s post-legalization marijuana market.
While Cambium Analytica is most often associated with cannabis, that’s neither where the company’s roots lie, nor – entirely – where its future path leads.
Before CEO Alex Adams founded Cambium Analytica in 2019 with partners Quinn Raftery and George Powell, he had spent several years working in and around the Michigan hops market. He fell into that particular niche while studying at Michigan State University, where he majored in plant biology and biochemistry.
It’s also where he developed an interest in the specialty crop agricultural industry while working for MSU in their hops research plant in Suttons Bay.
MSU had planted one of the first hops farms in Michigan to conduct a hop cultivar variety trial to see what grew well here.
As it turned out, a lot of hops varieties grew well in northern Michigan, and before long, the state’s hops industry grew exponentially, buoyed by Michigan’s growing reputation as one of the top craft beer states.
When the hops industry took off, Adams dove in.
“I was building farms. I was contracting farms. I was working as an agronomist for several years, selling fertilizer and consulting. I even helped build MI Local Hops, which is a big processor out in Williamsburg,” he said.
As he made his way, Adams learned to test and monitor the traits of hop plants. As with any other crop type, hop farmers pay close attention to key aspects of their plants – from moisture content to nutrient levels and beyond. These attributes are important to
Cambium Analytica is building a quality assurance empire in cannabis, hemp and now nutraceuticalsLeft to right are Alex Adams, Quinn Raftery, George Powell and Shelly Smith.
Cambium has grown from nine employees and a single laboratory to a business with 96 personnel and three labs – including two in Michigan and a new location that just opened in Northampton, Massachusetts.
brewers and to the products they make, which makes reliable hops testing an important aspect of the beer industry.
Originally, Adams, Powell and Raftery were interested in starting an agricultural testing laboratory in northern Michigan because most hops and soil samples were exported for testing to labs across the country.
“We had so much diversity of crops up here that it kind of made sense that we could sustain a crop laboratory here in Michigan,” he said. “Even Michigan State was sending out a lot of their samples out of state.”
Adams started working on a business concept for establishing a hops testing laboratory in the Grand Traverse area.
Then, while working on the hops testing lab idea, Adams says the state came out with the cannabis regulations.
“Within those regulations, analytical testing (the safety compliance laboratory license) was one of the licenses. It was called the safety compliance laboratory license,” he said. “And that immediately seemed much more profitable to us [than hops testing].”
The three decided to change course.
Adams and his partners ended up landing just the sixth safety compliance laboratory license in Michigan history and launching Cambium Analytica.
Adams says that the company grew quickly.
“At one point, we were the largest laboratory in Michigan, out of 17-20 labs,” he said. “I think we might still be
the largest, but it’s hard to tell because the industry grew so fast.”
According to Adams, Cambium Analytica was profitable “within our first month.” Estimates typically say that it takes the average startup two to three years to turn a profit.
Now in its fourth year, Cambium has grown from a company with nine employees and a single laboratory to a business with 96 personnel and three labs – including two here in Michigan and a new location that just opened in Northampton, Massachusetts.
Almost all the growth has been driven by Cambium’s position in the Michigan cannabis industry. State law requires what Adams described as batch release testing for cannabis products, where those products go through a panel of tests intended to ensure consumer safety.
Cambium Analytica is one of a small number of businesses in the state that are licensed to perform that type of testing, which means the company has performed extremely well as communities throughout the state have adopted recreational marijuana ordinances.
The tests are very similar to what the Food and Drug Administration would require for any pharmaceutical product or dietary supplement.
“So, that includes testing on the potency of the active ingredients – and in the case of cannabis, that means cannabinoids testing,” he said.
The tests also include testing for metals, pesticides, water activity and
microbials including total yeast, mold, salmonella, Aspergillus, and E. Coli. If the product is a concentrate product or an extracted product, then the company must test for residual solvents.
“Bottom line, for every type of product, there are lots of specific tests that need to be done,” he said. “We do that testing.”
in other markets as well.”
The growth and diversification will require some heavy lifting for Cambium’s HR department.
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In addition to safety compliance testing, Cambium Analytica also offers a variety of R&D or quality control tests. An example in the cannabis world might be something like a weed gummy, where a manufacturer goes in with a certain specification for how dense their gummy needs to be. Alternatively, for cannabis-infused beverages, Cambium does color testing, turbidity testing, density testing and other checks.
While Adams said that much of the equipment used to test cannabis products is the same equipment that’s used in any market, for any chemical analysis, figuring out the specific methodologies for each test and finding ways to penetrate each new market will require new employees with different experience and expertise than what is represented on Cambium’s current team.
In other words, this growing company needs to grow its staff.
Michael Caruso
While cannabis testing accounted for 100% of Cambium’s revenues until late last year, the company has now entered a new chapter – one that Adams hopes will yield another 100-150% growth for the business this year.
“I’d say we will probably have around 130 employees by the end of this year,” Adams said. “And by 2025, I could see us employing 300-500 people in Traverse City alone.”
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Thanks to new lab capacity – including the new facility in Massachusetts – Cambium Analytica has begun taking its first major steps outside of its original market.
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While Adams acknowledges that those numbers mean a lot of jobs to fill during a period when hiring has been notoriously difficult for most local employers, he’s also optimistic about Cambium’s ability to draw professionals to northern Michigan who may not have previously had any realistic prospects for working in the region.
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“Now, we’re probably at 85% cannabis testing and 15% nutraceuticals and botanical products,” Adams said of Cambium’s Q1 2023 portfolio of business.
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The company is now positioning itself as a contract research organization in the pharmaceutical space.
“This is such a beautiful place to attract talent,” Adams said. “A lot of the people that we’re hiring are chemists, or microbiologists, or biochemists, people that previously worked in pharmaceuticals and nutraceuticals, or in the food industry.”
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“There is a lot of really amazing bio-prospecting that’s going on right now to develop new natural drugs from plants, and there are great companies that we’ve aligned with on that to help with testing,” he said. “It’s put us near the forefront of a lot of new research and a lot of groundbreaking drug development.”
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Many hubs for these markets are centered around large cities or even industrial cities, where there is pharmaceutical manufacturing, Adams says.
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“So, it’s been attractive for those people to come here,” he said. “And then we’ve also been hiring a lot of kids directly out of college, because we have a pretty young workforce and we love young, eager, creative minds.”
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Adams and his team have been recruiting people from all over the country who he says are really excited to move to Traverse City.
But that doesn’t mean he’s not looking closer to home.
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Within the next few months, Cambium will also be launching itself into the food testing market, where it will start out by offering testing services to companies in the fruit processing space. Other markets – like PFAS testing or testing of psychedelics, which is starting to see its own legalization talks – are also on the radar.
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“By the end of the year, the goal is to be below 50% cannabis testing (in terms of revenue share),” Adams said. “And that doesn’t mean reducing cannabis testing; it just means that we’re growing
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“We’ve been recruiting people that live here, too, both that were scientists already, and then also people who maybe weren’t working in science because there wasn’t any job up here (in that space),” he said. “Now those people are able to work in those fields, but keep living here.”
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“I’d say we will probably have around 130 employees by the end of this year. And by 2025, I could see us employing 300-500 people in Traverse City alone.”
– Alex Adams, CEO, Cambium Analytica
Almost all the growth has been driven
microbials including total yeast, mold, salmonella, Aspergillus, and E. Coli. If the product is a concentrate product or an extracted product, then the company must test for residual solvents.
“Bottom line, for every type of product, there are lots of specific tests that need to be done,” he said. “We do that testing.”
In addition to safety compliance testing, Cambium Analytica also offers a variety of R&D or quality control tests. An example in the cannabis world might be something like a weed gummy, where a manufacturer goes in with a certain specification for how dense their gummy needs to be. Alternatively, for cannabis-infused beverages, Cambium does color testing, turbidity testing, density testing and other checks.
While cannabis testing accounted for 100% of Cambium’s revenues until late last year, the company has now entered a new chapter – one that Adams hopes will yield another 100-150% growth for the business this year.
Thanks to new lab capacity – including the new facility in Massachusetts – Cambium Analytica has begun taking its first major steps outside of its original market.
“Now, we’re probably at 85% cannabis testing and 15% nutraceuticals and botanical products,” Adams said of Cambium’s Q1 2023 portfolio of business.
The company is now positioning itself as a contract research organization in the pharmaceutical space.
“There is a lot of really amazing bio-prospecting that’s going on right now to develop new natural drugs from plants, and there are great companies that we’ve aligned with on that to help with testing,” he said. “It’s put us near the forefront of a lot of new research and a lot of groundbreaking drug development.”
Within the next few months, Cambium will also be launching itself into the food testing market, where it will start out by offering testing services to companies in the fruit processing space. Other markets – like PFAS testing or testing of psychedelics, which is starting to see its own legalization talks – are also on the radar.
“By the end of the year, the goal is to be below 50% cannabis testing (in terms of revenue share),” Adams said. “And that doesn’t mean reducing cannabis testing; it just means that we’re growing
in other markets as well.”
The growth and diversification will require some heavy lifting for Cambium’s HR department.
While Adams said that much of the equipment used to test cannabis products is the same equipment that’s used in any market, for any chemical analysis, figuring out the specific methodologies for each test and finding ways to penetrate each new market will require new employees with different experience and expertise than what is represented on Cambium’s current team.
In other words, this growing company needs to grow its staff.
“I’d say we will probably have around 130 employees by the end of this year,” Adams said. “And by 2025, I could see us employing 300-500 people in Traverse City alone.”
While Adams acknowledges that those numbers mean a lot of jobs to fill during a period when hiring has been notoriously difficult for most local employers, he’s also optimistic about Cambium’s ability to draw professionals to northern Michigan who may not have previously had any realistic prospects for working in the region.
“This is such a beautiful place to attract talent,” Adams said. “A lot of the people that we’re hiring are chemists, or microbiologists, or biochemists, people that previously worked in pharmaceuticals and nutraceuticals, or in the food industry.”
Many hubs for these markets are centered around large cities or even industrial cities, where there is pharmaceutical manufacturing, Adams says.
“So, it’s been attractive for those people to come here,” he said. “And then we’ve also been hiring a lot of kids directly out of college, because we have a pretty young workforce and we love young, eager, creative minds.”
Adams and his team have been recruiting people from all over the country who he says are really excited to move to Traverse City.
But that doesn’t mean he’s not looking closer to home.
“We’ve been recruiting people that live here, too, both that were scientists already, and then also people who maybe weren’t working in science because there wasn’t any job up here (in that space),” he said. “Now those people are able to work in those fields, but keep living here.”
“I’d say we will probably have around 130 employees by the end of this year. And by 2025, I could see us employing 300-500 people in Traverse City alone.”
– Alex Adams, CEO, Cambium Analytica. SWIM . GATHER . DINE
Cannabis is a growing legal business in Michigan that is also illegal at the federal level.
This duality is prompting many employers to take a closer look at their policies and procedures.
“For anybody in HR … it’s been looming for a while,” said Rob Hanel, director of people and space at TentCraft.
Hanel is also president of the Traverse Area Human Resource Association. As such, he’s aware of what’s happening in various industries.
With Michigan among the states legalizing recreational use of marijuana, Hanel said a number of companies are relaxing their prohibitions against its use.
“Some companies take a more liberal approach,” he said.
That includes TentCraft.
“We look at it just like alcohol – that, I believe, is the middle ground,” he said. “You’re looking out for the organization while offering equal employment opportunity.”
He said that means following the same protocols as alcohol use, such as reporting any reasonable suspicion of being under the influence while at work and requiring a
drug test after any injury or accident.
Hanel said companies that do business at the federal level aren’t changing their zero-tolerance policies. The same is generally true for larger companies that do business across state lines as they choose to adhere to federal laws.
“It’s hard to generalize. Every company treats it differently. Some companies have zero tolerance (even) for tobacco,” Hanel said.
company still screens for THC if there is reasonable suspicion of the employee being under the influence at work. The company’s safety record remains in good shape.
The product’s status as being illegal in the United States, but legal in Michigan and regulated by local municipalities, has opened up new questions for insurance companies.
Tyler Bartosh of Spire Insurance in Traverse City said his company started as a
an employee to drink on the job, take pain killers, or other medicine that may impact behavior … cannabis can do the same.”
Hanel said such an approach makes sense. At TentCraft, they apply the same rules and regulations with medical marijuana as with other prescription drugs.
Attorney Taylor Ann Fiorvento said there have been other instances where federal and state laws conflict.
“It’s not the first time,” she said, pointing to same sex marriage as a recent example.
She said both employers and employees are still learning to navigate the ins and outs of cannabis use socially, politically and legally.
She noted that determining whether a company can or should regulate an employee’s off-duty use can depend on the business, as well as its perception in the marketplace.
“Some businesses are risk-averse. That makes sense for those dealing with the federal government,” she noted.
One local manufacturer that declined to be identified says it dropped marijuana from its screening for new hires in late 2021 to follow suit with Michigan marijuana laws.
However, the HR person said the
separate division of Top O’ Michigan Insurance to specialize in the cannabis industry.
“Personally, I think one of the bigger issues that creates exposure with legalization applies to any substance or medicine,” Bartosh said. “Just as we wouldn’t expect
Hanel said it’s logical that different industries have differing policies. He said medical facilities, the aerospace industry, and manufacturers where employees are running heavy machinery may well find it responsible to have a zero-tolerance policy.
“We look at it just like alcohol – that, I believe, is the middle ground. You’re looking out for the organization while offering equal employment opportunity.”
– Rob Hanel, director of people and space, TentCraft
Employees navigate the ins and outs of cannabis use
“At TentCraft, we’re not making rocket ships or in healthcare,” he said.
At the same time, the current job market means employers are competing for a smaller pool of candidates.
“It’s a competitive marketplace for employees,” Hanel said, and TentCraft doesn’t want to eliminate potential employees by prohibiting off-duty cannabis use.
The manufacturing company rep echoed those comments, noting it does not want to preclude job candidates from applying by screening for a product dubbed legal by the state.
While admittedly an imperfect system, the manufacturer is hopeful this change in context for employers will drive some innovation in screening mechanisms to determine the difference between THC that’s been in someone’s system because they smoked it two weeks prior, versus being actively under the influence.
That would enable employers to treat it more like screening for alcohol, which is essentially the category it’s now in.
While testing protocols are improving, Fiorvento agreed that they aren’t yet at the point where they can reliably determine whether someone with THC in their system is still high or not.
“We just don’t have a ton of good data on how regular use affects people. The best comparison is alcohol, but it’s not apples to apples,” she said.
Bartosh said workers’ compensation
issues may be impacted. For example, although existing research on the correlation between marijuana usage and employee injuries is low, some data has shown that using the substance can elevate workplace safety exposures.
Because marijuana usage may potentially increase the likelihood of employee injuries, it could subsequently result in elevated workers’ compensation claims. What’s more, some state-specific legislation has created various workers’ compensation challenges for employers.
Interestingly, he said a study in Colorado shows workers compensation within the cannabis industry specifically to be very safe.
The lack of a widely recognized impairment level has made it difficult for state legislatures to approach workers’ compensation benefits for employees who become injured and test positive for marijuana on the job.
Bartosh said that despite the challenges created by marijuana legalization, businesses can implement measures to minimize their exposures. They include:
• Educating employees on the safety risks associated with marijuana usage in the workplace.
• Adopt an appropriate marijuana usage policy aimed to prevent impairment issues on the job and provide proper support for employees. Such a policy may define when legal marijuana use is acceptable (i.e., outside of work hours) and establish
a zero-tolerance approach for employees in safety-sensitive positions (e.g., commercial drivers and those who operate dangerous equipment or heavy machinery).
Navigating the ever-changing landscape is a challenge. The Society for Human Resource Management said with President Joe Biden recently pardoning federal marijuana-related misdemeanors, HR professionals need to follow not only the
changes in laws and regulations, but also the changing attitudes toward recreational and medical marijuana use.
That includes how medical marijuana may correlate with the Americans with Disabilities Act, evolving laws and regulations on background checks regarding prior charges for marijuana-related crimes, as well as general drug testing and company policies.
Because marijuana usage may potentially increase the likelihood of employee injuries, it could subsequently result in elevated workers’ compensation claims.Hanel Fiorvento Bartosh
It only took four years and four months, but the City of Traverse City has finally issued its first-ever retail licenses for adult-use marijuana.
On March 9, the city released a list of 16 operators that have been approved to open recreational cannabis dispensaries within city limits.
While adult-use weed has been allowed in Michigan since 2018 when voters approved a ballot measure to legalize the drug, Traverse City was slow to opt into the market and faced considerable controversy (and even a few lawsuits) in its attempts to draft an ordinance that would bring recreational dispensaries to the city’s 8.6 square miles.
Last August, the city finally opened up an application window for licenses, ultimately netting 16 applicants. All 16 have now been approved for licenses.
Now, the big question is, what happens now that recreational cannabis has arrived in northern Michigan’s biggest population hub? To find the answer, the TCBN took a look inside two dispen-
saries – one that has been operating as a medical marijuana shop in town for more than three years, the other of which is a total newcomer to the local cannabis market.
House of Dank is one of 12 operators that the City of Traverse City licensed to open medical marijuana dispensaries
marijuana dispensaries in Traverse City. As approved, the city’s ordinance ultimately allowed for up to 24 adultuse licenses, which opened the door for businesses that hadn’t gotten medical permits to join the TC cannabis market. The four businesses in this category will be licensed only for recreational weed,
Oakwood Veterinary Hospital building at 924 Hastings St.
“We are at a bit of a disadvantage, since we are not one of the original medical facilities already up and running,” Rudolph said.
Not only do the existing stores have more brand recognition for locals after two-plus years of operation, but they also have facilities that have already gone through extensive renovation processes.
“We do have a location that is right next door to our cultivation facility, but we still have to complete our remodel of that property,” Rudolph continued.
At press time, there was no timeline of when the facility will be completed, but Rudolph says they anticipate being open for business before the summer rush.
through a lottery process held in May 2019. The brand currently operates nine dispensaries throughout the state of Michigan, including stores in Detroit, Grand Rapids, Saginaw and Ypsilanti.
Traverse City Cannabis Company, meanwhile, is one of four new operators that will be opening recreational
while the 12 pre-existing operators will be allowed to conduct both medical and adult-use sales from their premises.
Mike Rudolph, owner of Traverse City Cannabis Company, is excited about the opportunity to set up shop in town, but knows his business will have some catching up to do when it opens in the former
Once open, Rudolph hopes Traverse City Cannabis Company can build a competitive edge with its hyper-local business philosophy. By operating a cultivation facility right next door to its retail shop, the company will be able to source much of its own product with almost nonexistent logistical challenges. Rudolph thinks that model will appeal to TC locals.
“Once we are open, we plan on focusing on local products – ours included. We see our ability to supply our retail store using our cultivation facility right next door as a large advantage.”
– Mike Rudolph, owner, Traverse City Cannabis Co.
“Once we are open, we plan on focusing on local products – ours included,” Rudolph said. “We see our ability to supply our retail store using our cultivation facility right next door as a large advantage.”
Not that the transition to recreational weed will necessarily be effortless for existing operators, either.
According to Mike DiLaura, general counsel and chief corporate operations for House of Dank, even existing medical operators still have to get re-inspected – both by the Michigan Cannabis Regulatory Agency and by fire services – before they’ll get the go-ahead from the state to commence adult-use sales.
That process takes 10-14 days, and there are other housekeeping items – such as ramping up inventory – that can add some extra time. House of Dank aims to open for adult-use sales at its 514 Munson Ave. location by early April, and to be fully stocked in time for April 20.
and overextended. For instance, a recent headline from Crain’s Detroit proclaimed the following: “As more cannabis operations struggle, expect stores to close.”
The Crain’s story argued that “a variety of interrelated factors” – such as “tanking prices of flower” and “a questionable level of demand” for adult-use marijuana in Michigan – was creating trouble for operators and would likely lead to consolidation and store closures. That article also noted that Green Peak Industries Inc., the parent company of Skymint, is one of several major marijuana companies in Michigan that are currently in receivership – a step businesses take in hopes of avoiding bankruptcy.
“The demise of the Michigan cannabis market has been widely over-reported. In fact, the consumer cannabis market in Michigan is growing and incredibly strong. It’s likely the most resilient so far in the entire country.”
Speaking of 4/20, House of Dank is planning to use the (in)famous weed-smoking holiday to get past the other hurdle of the medical-to-recreational pivot: reintroducing itself to a community that has gotten used to relying on shops in Kalkaska or Honor for their adultuse needs.
- Mike DiLaura, general counsel and chief corporate operations, House of DankDespite these signs of trouble, DiLaura is bullish about the future of cannabis in the Great Lakes state.
“The demise of the Michigan cannabis market has been widely over-reported,” DiLaura said. “In fact, the consumer cannabis market in Michigan is growing and incredibly strong. It’s likely the most resilient so far in the entire country.”
Colorado and California have recently seen decreases in cannabis sales, but Michigan is continuing to see increases, DiLaura says.
The dispensary is plotting an all out 4/20 bash to serve as a grand reopening of sorts – an event that House of Dank Traverse City Manager Ryan Green said will feature free giveaways, local food, vendors, DJs and other entertainment.
While there are always challenges to entering a new market, both Rudolph and DiLaura are optimistic about the future of cannabis commerce in northern Michigan.
When asked about navigating competition in northern Michigan’s (suddenly very crowded) adult-use market – as well as dealing with other challenges, like the inevitable business fluctuations caused by the seasonality of tourism – Rudolph pointed once again to Traverse City Cannabis Company’s goal of establishing a local-centric identity as a business.
“In terms of how the market for recreational cannabis in northern Michigan could turn out, we believe that it’s no different than any other specialty retail store in this area,” Rudolph said. “There will always be varying demands throughout the year for any business in our area, but our goal is to build up a loyal customer base through our high-quality customer service and locally-grown products.”
DiLaura, meanwhile, spoke to a growing narrative in Michigan that the recreational cannabis market is oversaturated
“We are at a run rate of about $2.6 billion this year, and that doesn’t include Traverse City, which we believe is going to be a very large market, and it doesn’t include Detroit, because Detroit also just turned on,” he said.
DiLaura says that he believes Michigan is on its way to be a $3 billion-plus retail marketplace, which “sets it up to be one of the top five cannabis marketplaces in the entire world.”
In other words, DiLaura isn’t worried about House of Dank finding prosperity in Traverse City now that the business has a recreational cannabis license in hand – even with 15 other operators to fight for market share.
“We did some research, and we discovered that the Costco in Traverse City sells more alcohol and wine than any Costco in their entire system,” DiLaura said. “We think that’s indicative of what people do in Traverse City.”
DiLaura says northern Michigan is a magnet for upper-income people who are coming north to vacation and hang out.
“So, we think those alcohol sales will translate to cannabis sales, and we think the Traverse City marketplace is probably somewhere between $100 million and $120 million a year in aggregate market size,” he said. “That is significantly enough demand to allow all 16 stores to thrive and compete with one another.”
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The rules and roles for builders in the residential and commercial construction industries are similar but different. So, too, are two organizations that support them: the Home Builders Association Grand Traverse Area (HBAGTA) and the Builders Exchange of Northwest Michigan.
The HBAGTA supports legislative, educational and economic initiatives geared toward promoting the residential construction industry and home ownership. The association was chartered in 1970 and represents eight counties in northern Michigan: Antrim, Benzie, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee and Wexford.
The Builders Exchange – a member-owned nonprofit for commercial construction – dates back even earlier, incorporating in 1959. It provides access to project documents for commercial and industrial projects primarily in
the 13-county region, though coverage extends throughout lower and upper Michigan on large projects.
“We’re like sister or sibling organizations,” said Lauren Tucker, the executive officer at the HBAGTA. “There are a lot of areas where we overlap in advocacy.”
Among those areas is a desire to support those going into the construction trades, and convince people, especially students and younger people, that the trades are a valuable and viable career.
“We want to bring new folks into the industry,” said Lisa Leedy, executive director for Builders Exchange.
Tucker says that the groups would like to remove the stigma of working in the trades.
“I graduated in 2001, and everyone was going to school somewhere,” she said. “If not, something was wrong with you.”
But going to college was – and is – not without pitfalls, especially financially. Many who do graduate are saddled with debt, Tucker noted. Working in the trades provides opportunities to immedi-
ately begin earning a living, without the burden of student loans.
There’s also the fact that the number of skilled trades workers continues to decline, providing greater opportunities for those who do choose to pursue such a career. The Great Recession and subsequent Great Resignation resulted in many people leaving the state and/or the construction industry altogether, and there are not enough new entries in the field to take their place.
A recent article on Yahoo News noted the construction industry will need to attract an estimated 546,000 additional workers to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors.
“The climate has gotten more challenging,” admitted Leedy.
She said partnerships with agencies like Networks Northwest, Northwestern Michigan College and the Home Builders Association may help ease the loss as more people enter the trades. Programs
are underway to interest students at all levels. That includes financial incentives: The Detroit area construction executive recruiting firm The Birmingham Group said industry salaries are expected to increase by 5% in 2023.
Tucker said membership at the HBAGTA hovers around 300 members. It’s the third-largest of the 18 chapters in the state. She said the challenging economy often engenders a greater desire for people to band together.
“We provide value to our members – marketing, networking. In uncertain economic times they look to our programs,” she said.
The Builders Exchange also boasts approximately 300 members. One of the incentives for becoming a part of the Builders Exchange is that it offers a planroom at its office on Barlow Street in Traverse City. The planroom provides documents where contractors, tradespeople and suppliers can review proposed projects and bid on them. It is one of the
few in the nation that offers 24/7 keyed access for its members. Members can also access the planroom information via the internet.
Leedy said the Builders Exchange also offers members opportunities for collaboration and educational opportunities.
Leedy and Tucker said both organizations are committed to provide more housing, which is a critical need throughout the region.
“Everyone hears about housing, everyone knows someone who has (housing) needs. Our focus is multi-family,” said Leedy, noting the organization is trying to engage with commercial construction leaders in the industry.
While both organizations are geared toward servicing this region, they are divisions of national organizations and thus have reach beyond the greater Grand Traverse area. For example, Leedy said the Builders Exchange often collaborates with the Grand Rapids Builders Exchange. That makes particular sense when large-scale commercial projects may involve several firms with different areas of expertise, and such projects are generally open to bidding for firms throughout the state and beyond.
Jerry Tomczak of Cunningham-Limp is one of the few with a foot in both camps. He a member of the Builders Exchange Board of Directors and also a member of the HBAGTA Foundation Board (Tucker
noted this is the only chapter in Michigan with its own charitable foundation).
Through his companies he’s worked on numerous projects, including the Commongrounds building, the 4Front Credit Union headquarters, the Delamar and West Shore Bank. He says the Builders Exchange provides opportunities for networking, both socially and in a work setting, as well as training in everything from planning review classes to CPR.
Tomczak said the organizations also provide a voice for issues affecting the industry beyond what individuals or single companies can. And he also touts the cooperative efforts among the Builders Exchange, HBAGTA and NMC to promote and educate those interested in the trades.
“It’s an aging population. We need more women and men,” he said.
Tomczak said the opportunities for interacting with others in the field make both organizations beneficial.
Among the opportunities and special events are the awards of excellence, where the Builders Exchange honors companies and their projects (see sidebar). The HBA Builders Expo in March is one of its most popular events; another is the annual Parade of Homes, where some of the members’ best efforts are open to the public. This year’s parade is scheduled for June 15-18.
The Builders Exchange of Northwest Michigan hosts an annual Awards of Excellence in Construction program. It recognizes northern Michigan commercial projects and promotes the quality workmanship performed by contractors, subcontractors, suppliers and their employees.
The winning projects for 2022 were:
CUNNINGHAM-LIMP CONSTRUCTION
West Shore Bank
CUNNINGHAM-LIMP CONSTRUCTION
Yen Yoga & Fitness
D&W MECHANICAL
Daifuku - Jervis B Webb Co
KENT COMPANIES
309 Front Street
KENT COMPANIES
Caberfae Peaks
NORTHERN MICHIGAN GLASS
Ascione
RITSEMA ASSOCIATES
Delamar - Artisan Restaurant
RITSEMA ASSOCIATES
Munson Medical Center - Surgery Infrastructure
RITSEMA ASSOCIATES
West Shore Bank
SPENCE BROTHERS
Herbert H. and Grace A. Dow House
SPENCE BROTHERS
Barch Center for Freshwater Research & Education
TEAM ELMER’S
Keystone-Cass & Keystone-River Road/Beitner Roundabouts
TEAM ELMER’S
Boardman Lake Loop Trail - Phase 2
WINDEMULLER
Daifuku - Jervis B Webb Co
By Craig Manning
A balanced approach to business is keeping pipelines full and construction workers on an even keel, says one area commercial construction owner.
“I think the market is fairly healthy,” said Michael Brown, owner and president of Burdco Inc. “I’d call it good activity, but not overwhelming.”
Brown says that there is enough work in the pipeline through early 2024.
“It’s really kind of a sweet spot for us, because people don’t want to be overwhelmed, but we also have enough work in the pipeline to stay busy,” he said.
That’s not to say Burdco isn’t encountering any of the challenges that its construction industry contemporaries and competitors are. Brown said his company has learned the art of taking a “real measured approach” with the projects it takes on and how those projects are scheduled, avoiding situations where employees or subcontractors end up overworked and overwhelmed.
“There are definitely still some challenges out there,” Brown explained. “What we’ve learned is that you just have to manage your workload carefully to make sure you don’t get behind the eight ball or over-promise on a project.”
Regarding the labor shortages from a year ago, Brown says the situation has improved.
There are still a few blips here and there, but it’s not as crazy as it was a year ago,” he said.
Brown says that one possibility is that
“I don’t think hiring challenges are getting any worse (throughout the industry),” he said. “We know we need to be communicating on a regular basis, and that we
Bob Spence III, northern Michigan regional president for Spence Brothers Construction, agrees with the importance of being flexible and versatile. Spence Brothers works not only as a construction manager, general contractor, and/or subcontractor, but also on the project planning side with pre-construction services, pre-bond services, and feasibility studies.
“So, we experience pretty much all perspectives of the region’s construction market,” he explained.
At this time, budgeting and scheduling are probably the biggest challenges, Spence said.
construction companies are just “used to it” now and have recalibrated in recognition of where limitations are.
need to make sure we’re not over-committing on projects.”
“With inflation, material shortages and long lead times on various – and some-
“I don’t think hiring challenges are getting any worse (throughout the industry). We know we need to be communicating on a regular basis, and that we need to make sure we’re not over-committing on projects.”
- Mike Brown, owner, Burdco
“Bay Area Contracting has developed a strong team of professionals who allow us to exceed our customer expectations. Old Mission Windows plays a key role on our team providing years of experience, knowledge and a never-ending desire to create a once in a lifetime experience for our clients. It is a true partnership built on trust and respect”
-Dean Adams,President Bay Area Contracting
times random – items, conservative planning is really the only answer,” he said. “With that, however, comes the prospect of higher cost and increased duration of construction – neither of which are very attractive to owners and end users.”
On the building side, Spence said labor shortages continue to create both budgeting and scheduling difficulties for Spence Brothers and most other construction companies.
The shortage also reduces the amount of work the company can take on, he says, which he says is “unfortunate.”
“...(T)here certainly has been plenty of opportunity out there up to this point,” he said. “Hopefully (that level of opportunity) will continue, but there are some obvious and ominous signs that there could be a slow-down in the coming years.”
For now, both Burdco and Spence Brothers are keeping their project pipelines full – even if market challenges and labor shortages aren’t allowing them to take on as many projects as they normally would. Here are a few jobs keeping both teams busy this year and beyond.
Burdco
NanBop Farm: Introduced in 2022 by Heritage Broadcasting (9&10 News, MyNorth), NanBop Farm is an educational community farm and event center concept that is being developed on an 104-acre campus in Cadillac that currently houses the 9&10 television broadcasting studio (the Parthenon-like structure visible from US-131). Per Brown, Burdco recently got started on the multi-million-dollar, multiphase project to build out the site. That process will bring farm support buildings, overnight housing facilities and a new event center to the site, among other assets. Phase 1, which encompasses the farm buildings, is currently underway, while phase 2 will focus more on the event/hospitality sides of the project. Brown expects the buildout will play out “over a two-year period.”
Alta Vista: Burdco is one of the contractors working on Alta Vista, a manu-
factured housing development currently underway off Hammond Road between Grand Traverse Academy and Vanderlip Road. That project has been in the works for years – East Bay Township planning commissioners first gave it the green light in May of 2019 – but was delayed by the pandemic and the subsequent barrage of material and labor shortages. As planned, Alta Vista will eventually consist of 165 single-family homes and a community clubhouse with meeting rooms and gathering space, plus an outdoor swimming pool, hot tub, and pickleball court. “We are just doing the community building (for Alta Vista),” Brown said, noting that the buildout for that part of the project is nearly complete. Other contractors are working to complete sitework for the first phase of the project – which will include 56 homesites – by late spring or early summer, after which the manufactured homes should be able to be quickly be put up on the site. Brown said that developers are currently projecting residential occupancy for Alta Vista’s first houses “by mid-summer.”
Manthei projects: Burdco is currently overseeing a trio of projects for the Manthei Group, the sprawling 14-brand collection of companies based in Petoskey. For Manthei Wood Products, Burdco is building a 28,000-square-foot facility expansion that Brown said will allow the division to produce a higher capacity of plywood products; the buildout will be done by late summer. Meanwhile, for Manthei’s ready-mix concrete division –which operates four batch plants throughout the region – Burdco is building both a 19,000-square-foot expansion to the Charlevoix facility and a brand-new batch plant in Petoskey. Manthei already had a plant in Petoskey, but needed to relocate it to make way for its wood product manufacturing expansion, hence the new plant construction. Those two projects, Brown said, are expected to be finished in early spring and by July 4, respectively.
French Manor Terra: This senior living facility on LaFranier Road first opened in August 2020. According to Brown, the original building was always intended as
just the first phase of the project, with the full site designed and strategized to accommodate two more wings, including a memory care wing. Burdco is in the development and planning process on that second phase now, with plans to break ground in early summer.
Lake Superior State University: Spence Brothers recently completed a $12 million contract as the construction manager for the new Lake Superior State Center for Freshwater Research and Education in Saute Ste. Marie. That project was in the works for years, officially commencing in fall 2019. A mix of underground obstructions and the COVID-19 pandemic delayed the project, but Spence says the lengthy timeline was “worth it.” The project ended up winning a statewide award for top construction project from the Construction Association of Michigan.
Kalkaska Memorial Health Center: Spence Brothers is currently underway on a $12 million addition and renovation of the emergency department and medical surgery facilities for Kalkaska’s main hospital. The two-story, 26,000-squarefoot project will relocate and expand the hospital’s emergency and medical-surgical inpatient departments, adding new support spaces, site improvements and other changes to those facilities. Work kicked off last August and will continue for the majority of this year, with an estimated project completion date of Nov. 30. Spence Brothers is acting as construction manager for the project and also provided extensive pre-construction services, says Spence.
The Grand Hotel on Mackinac Island: The famed Mackinac Island hotel brought Spence Brothers in to handle multiple major restoration and renovation projects, including work on the hotel’s iconic porch and façade as well as renovations to a pair of on-site restaurants. “The porch/façade piece is a multi-year project, with a small portion taking place this winter,” Spence said, noting that all doors, windows, siding, column covers and flagpoles will ultimately be included in the project. The restaurant renovations on Woods Restaurant and The Jockey Club – two of the 14
restaurants and bars at the hotel – kicked off in November and will be complete by the end of April. The off-season project timelines help the Grand minimize impact on guest experience, but Spence said they also create some unique challenges. “These are winter construction projects that require all materials to be barged over, all manpower to be housed and fed on the island, and most materials to be moved from the dock to the projects via horse-drawn drays,” he said. “Still, it’s really exciting to be a part of restoring the most iconic structure in Michigan.” In total, Spence Brothers will have done about $7 million of work on the Grand Hotel this winter, with additional work to come in future years on both the façade and porch.
FishPass: In October 2020, the Army Corps of Engineers awarded Spence Brothers a nearly $20 million contract to build FishPass, an experimental technological system intended to pass desirable fish species up the Boardman River while keeping out invasive species. Initially slated to start construction two years ago, the project has faced significant delays due to a lawsuit. But a Michigan Court of Appeals ruling from October of last year has effectively freed the City of Traverse City and its partners – including Spence Brothers – to resume work on the project at long last. “We are optimistic that (construction on FishPass) will soon start, and we have been working with the Army Corp of Engineers to update pricing and restructure the construction program,” Spence said.
Michigan Department of Natural Resources: Spence Bros. is acting as the construction manager for a three-year program with the State of Michigan’s Department of Technology, Management and Budget and the DNR to deliver approximately 25 projects at numerous DNR facilities and parks across the eastern side of the state. Expected cost is approximately $30 million and the scope of work is infrastructure, bathroom/shower buildings, and site improvements, all funded by the 2021 American Rescue Plan Act. “The first round of projects will be delivered in 2023, with the bulk of the work coming in subsequent rounds in 2024 and 2025,” Spence said.
There’s plenty of room to grow in the construction field.
The Bureau of Labor Statistics reports that nationwide about 723,400 openings each year, on average, are projected to come from growth and replacement needs from 2021 to 2031 for construction and extraction occupations.
Overall construction employment is projected to grow 4% in that decade, which is about as fast as the average for all occupations.
There’s more momentum locally. Rob Dickinson, business services regional director at Northwest Michigan Works!, says construction jobs grew at an average rate of 6.5% from 2019 to 2022 and accounted for 7.5% of jobs in the northwest Michigan job market.
“Construction continues to project high demand,” Dickinson said.
Short-term projections through 2023 show the construction industry as the third-highest growth industry in Michigan, behind leisure/hospitality and professional/business services, said Dickinson, adding it is expected to drop to sixth by 2030.
But even with those growth predictions, are people coming to the field?
The Associated General Contractors of America (AGC) says no. Their 2022 workforce survey reports that 91% of construction firms are having a hard time finding workers to hire, driving up costs and project delays.
Lauren Tucker, executive officer of the Home Builders Association Grand Traverse Area, agrees the local hiring outlook is challenging.
“This is not a new issue to the construction industry, on both sides – residential and commercial,” she said.
Tucker points to many causes, including 2008’s Great Recession which caused many local tradesmen to leave the area and
the decades-long practice of steering high school students away from the trades.
“We have told young people for years that they need to go to college to make something of themselves, while there are respectable and lucrative careers in the skilled trades that you can begin learning and earning the day you graduate high school,” she said.
To incentivize entry into the field, construction companies have gotten creative. The AGC survey found that 29% of respondents have lowered hiring standards (e.g., education, training, employment, arrest record, drug use or testing policy); 42% have initiated or increased spending on training and professional development; and 86% have increased base pay rates.
Dickinson echoes these incentives, noting that hiring and retention strategies for northern Michigan construction businesses also include offering apprenticeships and professional development in addition to higher pay, more benefits, referral bonuses and loyalty bonuses for staying longer than six or 12 months.
“All that said, the most successful way to attract new employees is to build awareness and show off your work culture,” he added. “All businesses are offering bonuses or paid time off ... but those that can show that you are a company that cares are coming out on top at this point.”
As construction businesses struggle to find employees, they also struggle to source building materials. Supply chain issues, material shortages and soaring costs created a perfect storm in 2021, and though 2022 was more stable, the monetary ripple effect has been felt from suppliers to builders to homebuyers.
The drastic shift in lumber prices exemplifies the problem.
Trading Economics, which provides global historical data and forecasts for more than 20 million economic indi-
cators, recorded the cost of lumber from 2018 to early 2020 as ranging from $304 to $639 per 1,000 board feet. Then, in conjunction with the pandemic-fueled decline in the construction job market, the price of lumber plummeted in April 2020 to $264.
That’s when the real trouble began. Prices climbed for the rest of 2020, then skyrocketed to $1,686 in May 2021 – a 538% increase in just over one year – with another peak of $1,464 in March 2022. Those were the two biggest spikes in Trading Economics’ 25-year tracking history.
At the time of publication, lumber prices currently sit at $365 per 1,000 board feet. Those price increases in turn have a direct effect on new building projects.
In AGC’s workforce survey, 58% of respondents cited increasing costs as a reason upcoming or expected projects had to be canceled, postponed or scaled back.
A tough hiring market and high business costs don’t seem like they would add up to more homes being built, especially at affordable prices for the buyer.
But a 2022 national housing report from Habitat for Humanity estimates that Michigan is short 87,000 homes, and the Michigan Economic Development Corporation shares that Michigan’s statewide housing plan estimates that 75,000 new homes need to be built every year “just to keep up with demand.”
In constrast, the Home Builders Association of Michigan forecasted that only 17,114 single-family home permits would be issued in 2022 (final numbers have not yet been released).
Meanwhile, local nonprofit Housing North specifies that Grand Traverse County needs an additional 5,715 hous-
ing units through 2025, 72% of which should be rental units.
According to Grand Traverse County’s online permitting portal, EPIC GT, 311 new construction residential building permits were issued in 2022 – most of which were single-family units – along with 10 permits for manufactured homes, six for modular homes and four for accessory dwelling units, or ADUs.
The construction industry has open jobs and room for growth, but businesses are having trouble finding and retaining talent. There is enormous demand for housing in the state, but fluctuating costs are stifling opportunities to meet that demand.
Most agree the most important determinant in the health of construction businesses remains simple: A growing talent pool, says Dickinson.
“Issues that our local employers are facing include not having the talent pool they once had, trouble attracting the talent that is present, and when the talent shows up, they don’t have the necessary skill set,” Dickinson said.
Other contributing factors that are hitting the industry include the lack of affordable housing, lack of transportation and higher daycare costs, she added.
“Families are making decisions based on these issues, and construction employers in northwest Michigan are losing out,” she said.
From wintry winds leaching the heat from homes to April showers dripping through a leaky roof, the vagaries of Michigan’s weather pose an ongoing challenge to homes. Those without the financial means to address such problems not only see the value of their home diminish but may suffer health problems as a result.
The Northwest Michigan Community Action Agency (NMCAA) is here to help. Its Weatherization Assistance Program (WAP) offers assistance in addressing these and other challenges to low- and moderate-income families.
Tish Stave, director of housing and energy efficiency services for NMCAA, says the program has been in place for 40 years with the aim to help clients while decreasing demand on the energy grid.
“It’s a big focus nationally,” she said. Stave said the NMCAA is working
with both homeowners and renters in the 11-county region to make their residences warm, safe and weather-tight.
“We offer help with emergency home repairs and weatherization for families across our region,” she said.
To begin, homeowners or renters fill out an application, which prompts an energy audit.
“We try to look at the whole house,” said Stave.
The identified projects are completed by a building, insulation and/or weather sealing “shell” crew, in addition to a mechanical crew which focuses on mechanicals and appliances. The process is followed up with a final inspection.
From the initial application through testing, work and inspection, the process may take several months or more. Households are scheduled based on urgency of the need, including whether there are vulnerable residents such as children or
the elderly. The
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In one residence, the inspector heard the sound of leaking gas, Stave says.
“That’s how bad it was,” she said.
John Sullivan of Clark Construction is crew lead for the shell crew. He’s been with the program since 2010, working for both NMCAA and a similar agency in Chippewa, Luce and Mackinac counties.
“When I got into this I thought it was cool,” he said.
He had worked as a carpenter previously, but the opportunity to help those in need while he moved into more of a leadership role was very appealing.
“People hug you, kiss you, put $20 in your hand – of course we don’t take it,” he said.
The shell work ranges from adding insulation in the attic (the most frequent work done) to adding it in the walls, working on foundations, sealing cracks and other places where air leaks are common (such as around windows), and generally making sure the home is both safe and airtight.
The mechanical side involves testing, repairing and replacing appliances from stoves and refrigerators to furnaces. The workers also make sure that smoke and carbon monoxide detectors are installed and working properly.
Marshall Willobee is a quality control inspector who follows up on the work to make sure it is all done according to standards. He said that inspection is just
as thorough as the initial assessment: He runs a blower test to check for leaks and makes sure all appliances are vented and drafting properly.
“It takes a couple hours onsite,” he said.
He then reviews the results of the test offsite to make sure the resulting measurements are up to standard. He said the final inspection is a crucial step, as looking at the entire scope of repairs with fresh eyes can provide a new perspective and catch things that otherwise might have been missed.
Like Sullivan, who lives in Sault Ste. Marie and whose territory ranges Michigan’s Upper Peninsula and northern Lower Peninsula, Willobee lives in Cedar and works as far south as Wayne County.
“It’s good to see different home stock (and) round out your knowledge,” Willobee said.
WAP is funded by the Department of Energy Weatherization Assistance Program and the federal Department of Health and Human Services’ Low-Income Home Energy Assistance Program (LIHEAP). The recent federal infrastructure legislation has allocated billions of dollars into the WAP, meaning there is plenty of funding available, offering steady work for contractors for the next five years.
Stave said they were able to service 80 houses last year. This year and for the next five years they plan to weatherize 160, as long as they can get enough crews. With the
current labor market shortage in virtually every field and every sector of the economy, Stave said the organization is constantly on the lookout for more qualified personnel.
While Sullivan and his crew are able to regularly participate in the program, there remains a need for area contractors to help with weatherization work on eligible single-family homes and smaller multi-family units in northern Michigan.
Interested contractors should contact tstave@nmcaa.net to request a blank price list and request for proposal guidelines.
Sullivan said the program is an excel-
lent introduction to the trades for those who might be interested.
“We get some with zero experience,” he said.
They range from an orderly from a hospital and those with experience in manufacturing to recent high school graduates. He said there are a couple in Traverse City who intend to join Clark Construction (the company Sullivan works for) and work in the program when they graduate.
“It’s good to help clients and it’s good to help bring people into the construction trades,” Sullivan said.
The concept of disability is trending in business, particularly with respect to diversity, equity and inclusion.
Disability should not be understood as an inability or impaired ability, but rather as the result of interactions between a person and environmental barriers created by society. Under this model, the onus is on society to make buildings, products, environments and communications useable to all.
Legal statutes and regulations mandate “Americans with Disabilities Act (ADA) compliance,” which is an over-generalization of a multitude of statutes and laws that issue requirements for the construction of new buildings, renovations and the designing of public areas.
“ADA compliance” is evolving into a term of contention for many architects and developers when designing master plans for new projects, as the accessibility components change the intended aesthetics of a design. As people begin planning with ADA compliance in mind, the result is often segregated environments, which brings new meaning to the stigmatizing “separate but equal” in modern design. It is often misconceived that reaching full ADA compliance is an end goal and an accessibility ideal that cannot be improved upon.
As building designers work to retrofit older buildings or craft new designs, meeting basic ADA compliance looks something more akin to separate entrances: visually pleasing and welcoming main entrances with stairs; and colder, less inviting side or rear entrances with ramps of concrete and metal piping.
ADA compliance is the bare minimum implementation of accessibility features that are legally required to provide an accessible environment for people with disabilities, but it does not always meet the needs or demands for accessibility.
For those looking for full inclusion, ADA compliance is just the tip of a somewhat secret iceberg of more perfect accessibility: the beautiful world of “universal design.” Defined by the late Ron Mace, the father of the U.S. movement
for universal design as “a design that’s usable by all people, to the greatest extent possible, without the need for adaptation or specialized design.”
The goal of universal design is a person-centered approach to blend adaptability with full diversity of human shapes and abilities in mind and aesthetics into one package to make a product, environment or communication usable for and by all persons.
Universal designs by principle are equitable in use, flexible, simple and intuitive. They are usable for people with diverse physical, sensory and cognitive abilities, allowing everyone to use or benefit from the same design. Designs engineered with intent that are useable by all people, with naturally pleasing aesthetics, result in inclusive access without the need to stigmatize and segregate any person regarding their ability.
Consider an in-ground pool featuring a well-designed main ramp entrance. All people are encouraged by design to enter by the same main entrance and removes the need to install a lift to place non-ambulatory people in the water. Other features might utilize universal
design such as communication about pool rules using pictographs, matte finishing on contrasting backgrounds, braille or QR codes which allow for screen reader or auditory options.
Universal design is not a design style or trend and is subject to the limits of modern engineering. Occasionally, there are circumstances that challenge the use of universal design, arguably because creativity in design hasn’t reached its fullest potential and a single design cannot always meet the needs of all abilities.
Consider water fountains, products in which both height and ability might be a barrier. A design that features two identical fountains at different heights operated by sensors that provide natural choices in the method of use with options for a person’s stature or a wheelchair user. In these circumstances, ensuring that amenities are as similar and inclusive as possible is key to promoting equality in access.
All of society benefits from universal design. Collectively, we are living longer lives and have more opportunities to experience disability, whether we are born with a disability or acquire
one at any point along the way. Aging in place is becoming problematic as people grow into their golden years and are no longer able to navigate stairs, use fine motor skills and lose the senses of sight and sound.
With the aging population we are recognizing that retrofitting inaccessible features can be more expensive than designing with accessibility in mind from the beginning. Creating segregated uses for accessible and inaccessible uses unnecessarily duplicates costs for owners and developers and further perpetuates stereotypes and stigmatization of people with disabilities.
Universal design is the solution to merging equal access and adaptability for our buildings, products and environments.
Alanna Lahey is the associate director and an access and inclusion specialist for Disability Network of Northern Michigan in Traverse City. Disability Network Northern Michigan is the first stop for people with disabilities and their families in northern Michigan. Its mission is to promote personal empowerment and positive social change for people with disabilities.
Since 1955, Americans have been tasked with filing their tax returns by the April 15 deadline. Though the popularity of electronic filing has alleviated the mad dash to the post office – the IRS reported that 90% of individual tax returns and 78% of all filings were transmitted electronically last year – tax season is still a high-pressure time of year for taxpayers and tax prep professionals alike.
For CPAs and tax pros, busy season ramps up in February, when clients start receiving their W-2s, 1099s, and other important tax documents.
For Ryan Parker, owner of Professional Tax Service in Traverse City, tax season means working seven days a week, 12 hour days.
“I take a couple of days off during tax season, but not many. It’s go-go-go,” he said. “We have good people, so that makes it bearable.”
Jon Sluis, director of Intrust CPA says that most work 12-13 hours a day, six days a week.
“It is hot and heavy right now,” he said. “We work hard during the winter and get more time off in the summer. We do our best to shift as much as we can off of tax season and spread it throughout the year, but inevitably it doesn’t happen.”
At Padgett Business Services, owner Rex Rudolph is making a concerted effort to get peak hours under control for his staff.
“One of the things we learned from COVID was that people don’t want to work their lives away,” said Rudolph. With the baby boomer generation retiring, many accounting firms are
struggling to find enough workers to replace them. Rudolph is hoping that by reducing client loads and bringing tax season hours down from 60-70 per week to 50-55, his firm can retain a happier, healthier staff.
Even with the heavier workload, tax season is an opportunity to connect with clients and think about the future.
“People say ‘Oh, you must be so tired.’ And I am tired, but at the same time, it’s invigorating because I get to meet with the clients,” said Sluis. “It’s the one time of year they want to come talk to their accountant. It’s on their minds; they like
human creativity and emotions.
“I had a client that tried to deduct her daughter’s wedding as a business expense, and legitimately thought it would be, because they invited all her clients,” said Sluis. “I gave them kudos for being creative - and immediately shut that down.”
The child tax credit can also cause confusion for parents who share custody. With 50/50 custody becoming more common, and with kids going away to camp or spending part of the summer with grandparents, it can create a situation where neither parent can claim the dependent(s).
ily bolstered to $3,000 ($3,600 for children under six) by the 2021 American Rescue Plan, has returned to the pre-pandemic level of $2,000 per child.
On the business side, retroactive changes to the employee retention credit (ERC) have created a flurry of amended 2020 and 2021 returns. The Consolidated Appropriations Act of 2021 made it so businesses that received Paycheck Protection Program (PPP) loans can also qualify for the ERC for the portion of wages not paid for with PPP funds.
“A lot of business owners are being called and marketed to about the ERC right now, which is exciting because they’re getting money back,” Sluis said. There is a problem, however, says Sluis.
“They have to go back and amend their 2020 and 2021 returns before they can file for 2022,” he said. “So it kind of involves three-returns-in-one for a lot of businesses out there.”
it; they’re planning. It’s a good time to meet with them, so it’s fun.”
Clients can make the process smoother by making sure they have all their documents in hand and remembering what they need from year to year – though it isn’t always easy, particularly for people with investments.
“A lot of the brokerage houses are given extensions to file tax forms by the government, so clients get those late, maybe even after their taxes have been prepared. It creates a domino effect and a rush for everybody,” said Parker.
From hand-scrawled business expenses, outlandish deduction claims, and documents in need of fumigation, tax preparers experience the full gamut of
“If you truly prepare it correctly, more often, both parents lose and the IRS smiles and wins. Because in order to qualify, you have to have the kid more than 50% of the time. Now all of the sudden, neither parent has them for more than 184 days, so neither parent gets the credit,” said Sluis.
Though there aren’t any sweeping changes in tax laws this year, people who claim dependent children will almost certainly experience smaller refunds this year.
The reduction of the child tax credit was identified by all of the tax pros the TCBN talked to as the biggest change for individual filers.
The credit, which had been temporar-
According to Rudolph, for most people with simple returns, using do-it-yourself software or a website will get the job done. Both for those with more complex financial situations, working with a professional can pay off.
“Where we can really add value is for people with investments, rental properties, and more complicated returns,” Rudolph said.
Parker says that just the knowledge of how the client could do things differently sets their field apart.
“If you’re making a certain amount of money, what’s the benefit of a Roth IRA vs. a traditional IRA? Trying to make the system work for you is the benefit of working with a tax professional,” Parker said.
“It’s the one time of year they want to come talk to their accountant. It’s on their minds, they like it, they’re planning.”
– Jon Sluis, director, Intrust CPA
By Jerry Benjamin, columnist
We’ve all been there. Critical projects, competing priorities and tight deadlines loom while facing limited resources. So, you put your head down and work harder and longer. How do you break the cycle?
There are options to expand your resources by leveraging a fractional CFO solution. Fractional CFO services operate as an extension of your existing finance team. They provide necessary capacity and capabilities, and, if needed, can fill the gap during a transition period.
A growing number of companies have turned to fractional CFO solutions to meet their specific needs on a cost-effective basis.
Fractional CFO resources can add value to your company in a number of ways by providing:
An unbiased assessment of your finance team’s resources and deliverables. Consider the following assessment areas:
• Your team. Does the existing team have the bandwidth and/or skill set to address the current workload and projects?
• Key business processes. How effective are the key business processes such as order to cash, procure to pay and production to fulfill, which ensure transactions are processed efficiently, accurately and with proper approval?
• Utilization of existing systems. Is an accounting/ERP system used as the single source of truth or are there multiple off-line systems such as Excel spreadsheets being maintained and relied upon?
• Financial reporting. Are financial statements generated within five to 10 business days of month-end? Do they include meaningful analysis that highlights trends, concerns, opportunities, etc.?
• Forecasting. In today’s dynamic environment, are financial projections generated that provide leadership with a near-term outlook providing a window for course correction, if needed?
Liquidity evaluation. Establishing cash flow projections provides visibility to potential cash constraints in advance, allowing time to proactively address your organization’s liquidity.
Bandwidth and/or expertise to support key company initiatives or projects. This
could include ERP system selection and implementation; evaluating significant capital investments and the projected returns; evaluating potential acquisitions; and supporting due diligence and subsequent integration.
Create increased visibility. While understanding current financial performance is important, we move forward looking through the windshield, not the rear-view mirror. Developing and maintaining a meaningful financial forecast is essential to successfully navigate and operate in a dynamic environment. This involves a solid understanding of the company’s operations and soliciting input across the organization – sales, operations, human resources, etc.
CFO-level operational insights and support. This level of support – a full-time CFO serving as a member of a company’s finance team – would depend upon the size of the company and the current business environment.
Frequently, a finance team is focused on processing transactions, closing the month and preparing financial statements. These individuals may not have the time or the experience to function as the CFO, which begs the question: What should you expect from a CFO?
Ideally, this person will:
Understand the drivers behind financial performance. Companies need more than scorekeepers who can add up the results at the end of the month.
The CFO should understand the “why” behind the financial results and provide actionable insights.
Proactively manage liquidity. Unless you have a fortress balance sheet with significant cash, monitoring and projecting cash flow is critical to support current operations and fund initiatives. Think beyond what needs to be paid and ask questions like: “What is our cash flow conversion cycle? What needs to be paid out? What’s in the pipeline? Is there anything out of the ordinary we need to account for?” That granular understanding is necessary to ensure your company will have the cash flow and lending capacity available to meet its obligations — even during a slow sales cycle or when other issues possibly arise.
Drive value. The CFO should facilitate projects that are focused on improving profits, increasing efficiencies and optimizing overhead structures.
So, take heart; there is hope! A fractional CFO solution could be just the answer you’re looking for.
Fractional CFO services operate as an extension of your existing finance team.
Michigan’s capitol building may be more than 180 miles away from Traverse City, but the decisions made there affect local commerce, education, healthcare, and housing here. The TCBN asked five area leaders to speak on the bills or policies they are most advocating for – or dreading – right now. Here’s what we learned.
The bill or policy: A revision of House Bill 4375, a bill passed by both chambers of the Michigan legislature last year – and subsequently signed into law by Gov. Gretchen Whitmer – that was intended to make it easier for retired educators to return to the classroom with no penalty to them or their pension.
The reasoning: Per VanWagoner, the legislature was attempting to help schools navigate staffing shortages when they proposed and advanced this particular bill. Unfortunately, for many school districts – TCAPS included – the legislation has had unintended consequences that actually made the staffing situation worse, at least in the short term.
“It had good intentions,” VanWagoner said, “but what we recognized quickly is that the law said you had to sit out nine months (after retiring) and you couldn’t do anything in that time. You couldn’t even be on school property.”
VanWagoner told the TCBN that it’s
“very common” for TCAPS employees to retire from full-time work, but stay on part-time in certain capacities. For instance, sports coaches will often also be employed by the district as teachers; historically, it’s been typical for those employees to retire from their teaching roles before they are ready to give up coaching.
Similarly, TCAPS teachers might retire at the end of a school year but come back as substitutes the following year, while bus drivers often pivot from full-time work to part-time hours.
“A lot of our staff, they don’t want to quit cold turkey,” VanWagoner said.
“They just want more flexibility in their life, which retirement gives. But this bill literally locked them out (for nine months after they retired.)
VanWagoner says that it kept a couple of potential bus drivers out of the hiring pool.
“We had a couple of bus drivers this year who told us, ‘Hey, I didn’t want to
VANWAGONER,work full time, but I was still happy to work part time,’” he said. “And we haven’t been able to use them for the entire school year.”
Per VanWagoner, there is a push from school districts statewide to get legislators to revise the law and eliminate or decrease the nine-month lockout.
“We understand if there needs to be some sort of separation period,” VanWagoner said. “But I hope the state at least allows our retirees to come back and sub part time, or drive a bus part time, because we have critical shortages in those areas, and we really need help.”
The bill or policy: Another round of bills to boost efforts toward workforce and attainable housing development.
The reasoning: Last fall, Governor Whitmer signed into law a package of four bills designed to give communities new tools to address shortages in workforce and attainable housing. Housing North played a key role in that effort, participating in sessions with the Housing Michigan Coalition (HMC) – a group that included 60-plus other organization across the state – that led to the drafting of the legislation.
That first round of bills put new resources at the fingertips of communities to help them develop more “missing middle” housing, or housing for those making 60-120% of area median income (AMI). One of the bills enables communities to enter into payment-in-lieu-of-taxes (PILOT) agreements with developers, effectively making it easier to offer tax breaks in exchange for the development of affordable housing. Another allows local governments to create attainable housing districts, where property owners can apply for partial tax exemptions if they meet certain criteria.
Rather than rest on that victory, Brown said the HMC is currently working toward another round of legislative concepts to build upon last year’s successes.
“When we did that first round of bills, of course there was more that we wanted to get in there,” Brown explained. “But those initial tools were kind of the low-hanging fruit. Now we want to work on some other opportunities for tax
incentives that would help other groups.”
Brown singled out two ideas that she thinks could find legislative footing in 2023.
The first idea is an employer housing tax credit, which would incentivize employers to invest in workforce housing. As proposed by the HMC last year, the hypothetical bill would allow employers to claim an income tax credit “equal to 50% of the total eligible contributions made during the tax year.”
Such eligible contributions could take the form of down payment assistance, direct support for housing development, or through a housing trust fund to support their employees who earn up to 120% of the AMI.”
The second idea is a principal residence exemption, which would reduce property tax expenses for those providing year-round rentals to tenants “whose household income is not greater than 150% of the AMI.”
Brown also noted that the Housing Michigan Coalition is looking at ideas for “how we leverage some sort of local taxes to support housing locally,” which could also take legislative form at some point in the future.
“That’s a hot topic, and there are lots of opinions on how to do it,” she said.
One possibility is allowing communities to create housing authorities – similar to a BATA transportation authority – to leverage taxes and support housing in those communities that opted in.
“So, we’ll be looking at those ideas, too,” she said.
VISION:
design and build-out of a state-of-the-art medical facility.
Burdco helped facilitate the entire process from design, construction, furniture and even décor. They showed remarkable attention to detail, even after we moved into our newly constructed building, to ensure everything was to our satisfaction.
The bill or policy: During the 2022 legislative session, Michigan lawmakers considered House Bill 5601, which would have created a corporate income tax credit for qualified research and development expenses. Specifically, 15% of the money that companies in the state spend on R&D annually could be claimed as a tax credit.
Per Arouca, GTAMC was extremely supportive of that bill as a means to incentivize innovation in the manufacturing sphere –especially in the area of advanced automotive technology, which was specifically identified in the bill as a sector that could benefit from an R&D credit.
“GTAMC fully supports House Bill No. 5601 for state tax credits that incentivize R&D,” Arouca wrote in a one-sheet provided to legislators while the bill was still in the mix.
Arouca noted at the time that automotive technology is one of the largest manufacturing subsectors in northern Michigan, and that a manufacturing hub for R&D/learning is in development at Northwestern Michigan College (NMC).
The one-sheet also included a few key stats, including that manufacturing employs some 17% of the Grand Traverse workforce, and that average wages in local manufacturing are 140% of the overall area average.
GTAMC also encouraged legislators to amend the bill to include a tax credit for the purchase of new technology, which the organization argued would help businesses in the manufacturing space “remain (or) become competitive.”
House Bill 5601 ultimately failed to gain enough traction to make it to the governor’s desk before the last legislative session ended. However, Arouca is hopeful that a similar bill will soon be on the floor in Lansing once more, and that lawmakers will see the legislation through to fruition this time around.
“We think the tax credit has a decent chance with the legislature this year,” said Arouca, who says he speaks regularly with the Michigan Manufacturers Association (MMA), and believes there is a strong consensus that this tax credit legislation is a good thing to do “for a whole bunch of reasons.”
He added that the MMA is currently “jockeying to find a sponsor” to introduce a new version of the bill to the state legislature.
The bill or policy: The Michigan legislature’s ongoing support for rural hospitals in the state budget.
The reasoning: Per Schneider, Michigan’s policymakers have recently been advocating for rural healthcare – decisions that are manifesting as state budget allocations with a significant impact on the communities served by Munson Healthcare.
Resources through the Small and Rural Access Fund, the Obstetrics Stabilization Fund, and the Critical Access Hospital Fund play a key role in helping maintain access to healthcare in rural communities, he said.
“These funds help us to fulfill our commitment as a non-profit, which included over $110 million in community benefit programs and charity care this past year,” he said.
In particular, Schneider notes that state funding for rural hospitals has had the effect of keeping organizations like Munson viable and able to support their communities during the COVID-19 pandemic.
“As northern Michigan’s largest employer and healthcare provider, these state resources help Munson Healthcare bridge the gap to ensure the people in our communities have access to the care they need, close to home,” he said.
The bill or policy: House Bill 4136, a piece of legislation introduced by newly-elected state representative Neil Friske (R-Charlevoix), would restrict access to certain books in public libraries. Friske seeks to have books with “sexually explicit” or “obscene” content taken off general shelves and placed in a restricted section where patrons under the age of 18 can’t check them out. The bill is part of a larger nationwide trend toward book-banning, particularly in schools and public libraries.
The bill or policy: House Bill 4136, a piece of legislation introduced by newly-elected state representative Neil Friske (R-Charlevoix), would restrict access to certain books in public libraries. Friske seeks to have books with “sexually explicit” or “obscene” content taken off general shelves and placed in a restricted section where patrons under the age of 18 can’t check them out. The bill is part of a larger nationwide trend toward book-banning, particularly in schools and public libraries.
or ‘obscenity.’”
or ‘obscenity.’”
As written, Friske’s bill is vague in its definitions of what might constitute “obscenity” or “sexually explicit” content. Just two pages and less than 250 words in length, the legislation states that any library in Michigan that “makes available to the public material that is either obscene or sexually explicit matter that is harmful to minors” must adopt and enforce policies to control the access of those materials.
who are responsible for what a child looks at.
As written, Friske’s bill is vague in its definitions of what might constitute “obscenity” or “sexually explicit” content. Just two pages and less than 250 words in length, the legislation states that any library in Michigan that “makes available to the public material that is either obscene or sexually explicit matter that is harmful to minors” must adopt and enforce policies to control the access of those materials.
who are responsible for what a child looks at.
“And it’s important that we leave government out of that,” she said, adding that the role of librarians is to get materials that the whole community would be interested in.
“And it’s important that we leave government out of that,” she said, adding that the role of librarians is to get materials that the whole community would be interested in.
“It doesn’t mean everyone agrees with every book, but it means that we agree that I’m going let you read it, and if I don’t like it, I won’t read it,” she said.
“It doesn’t mean everyone agrees with every book, but it means that we agree that I’m going let you read it, and if I don’t like it, I won’t read it,” she said.
The reasoning: “Anytime librarians feel like people are attacking our First Amendment rights, we get a little upset, because we feel like it’s our responsibility to our community to defend people’s right to information,” Howard said. “We all have a First Amendment right to the pursuit of information, and that’s the core mission of libraries.”
The reasoning: “Anytime librarians feel like people are attacking our First Amendment rights, we get a little upset, because we feel like it’s our responsibility to our community to defend people’s right to information,” Howard said. “We all have a First Amendment right to the pursuit of information, and that’s the core mission of libraries.”
Howard said the vagueness of the legislation – and the open-to-interpretation nature of what is or is not “harmful to minors” – is made more troubling by a section of bill that would allow any person to file a complaint against a library if they felt any books on its shelves were in violation of the law.
Howard said the vagueness of the legislation – and the open-to-interpretation nature of what is or is not “harmful to minors” – is made more troubling by a section of bill that would allow any person to file a complaint against a library if they felt any books on its shelves were in violation of the law.
Howard’s read on Friske’s bill is that “it basically speaks about pornography and pornographic materials.” Libraries, she assured, “don’t collect pornographic materials.”
Howard’s read on Friske’s bill is that “it basically speaks about pornography and pornographic materials.” Libraries, she assured, “don’t collect pornographic materials.”
“But what we do collect is things that do offend people,” she continued. “And that’s the hallmark of a great library, is it has something to offend everyone in it. And sometimes people confuse what they find offensive with ‘pornography’
“But what we do collect is things that do offend people,” she continued. “And that’s the hallmark of a great library, is it has something to offend everyone in it. And sometimes people confuse what they find offensive with ‘pornography’
The bill partially reads: “If an individual finds a library is not in compliance with this section, that individual may file a complaint against the governing body of the library in a court of competent jurisdiction. If the court finds that the governing body of the library has failed to comply…the court shall order the library to be closed to the public until the governing body of the library demonstrates to the court that it has complied…”
The bill partially reads: “If an individual finds a library is not in compliance with this section, that individual may file a complaint against the governing body of the library in a court of competent jurisdiction. If the court finds that the governing body of the library has failed to comply…the court shall order the library to be closed to the public until the governing body of the library demonstrates to the court that it has complied…”
In other states, bills and policies similar to Friske’s have been used to restrict books with content and themes around homosexuality, transgenderism, race, and other topics of sexuality and identity. Howard’s worry is that Friske’s legislation could bring those kinds of culture wars to Michigan in a bigger way – and potentially spell the end of libraries in the process.
In other states, bills and policies similar to Friske’s have been used to restrict books with content and themes around homosexuality, transgenderism, race, and other topics of sexuality and identity. Howard’s worry is that Friske’s legislation could bring those kinds of culture wars to Michigan in a bigger way – and potentially spell the end of libraries in the process.
“If this legislation passes, any person could walk in and find a book that has something in it that they don’t like or find offensive, and they could bring suit to the library,” she said. “That would just bog the library down with lawsuits, and we’d have to go to court to debate ‘Is it obscene? Is it not obscene?’
“If this legislation passes, any person could walk in and find a book that has something in it that they don’t like or find offensive, and they could bring suit to the library,” she said. “That would just bog the library down with lawsuits, and we’d have to go to court to debate ‘Is it obscene? Is it not obscene?’
Howard argues that the bill takes away rights, especially those of the parents,
Howard argues that the bill takes away rights, especially those of the parents,
“Just the attorney fees alone could bankrupt libraries.”
“Just the attorney fees alone could bankrupt libraries.”
The dearth of incoming certified accountants is a problem that many firms say they saw coming.
“The shortage has been coming for some time,” said Chris Kindlinger, president of Kindlinger & Company.
There are a number of reasons for the decline in the numbers: the retirement of the baby boomers, fewer people entering the industry, and the Great Resignation, where the pandemic hastened people’s job exit plans across many industries.
The Wall Street Journal reports more than 300,000 U.S. accountants and auditors have left their jobs in the past two years. That’s a 17% decline, which the dwindling number of college students graduating with an accounting degree can’t replace.
“For decades we’ve heard about how when the boomers retire, things would happen,” added Steve Peacock, principal at Rehmann. “COVID accelerated that.”
Plus there’s the fact that requirements can be daunting. To earn a certified public accountant license, a professional needs 150 credit hours, or 30 college credits beyond the typical 120-hour bachelor’s degree requirement.
“The increased requirements for the number of hours needed to be a CPA is … essentially a master’s. And the CPA exam is very hard. That limits the numbers,” said Jon Sluis, director of Intrust CPA.
The 10 extra classes can add up to a fifth year of college, which can cost tens of thousands of dollars in additional tuition and fees.
Sluis also noted how the industry’s work and financial structure can be off-putting as well.
“You work long hours (when) right out of college,” he said. “That has to shift. We’re not competing against other industries.”
At the same time, the monetary rewards don’t really begin to show until
years into a career.
“The industry defers gratification on wages,” Sluis said.
Then there’s the job itself, or at least people’s perception of it. Peacock said the stereotype of the accountant – the green visor pulled down, the garter on the arm, the door closed to prohibit any interaction with other people – further reduces the field’s appeal.
Accountants argue against that perception. Sluis said he enjoys working in accounting, though he realizes the reputation of the field doesn’t do it any favors.
“I’m biased but I think accounting is a thrilling and exciting career,” he said. “But the perception is it’s not as exciting as tech or others.”
It’s not just hiring new people that’s a challenge. According to the online business publication Insider, the American Institute
California wages,” said Sluis.
He said firms headquartered in large metro areas like Chicago, Houston, New York or Los Angeles typically charge higher billing rates and subsequently offer higher wages. He’s lost employees because he couldn’t compete financially.
“We own a tech company. Cybersecurity is people’s biggest concern, so we work in the IT space,” he said. “You don’t have to be an accountant per se to work for us.”
He said the possibility of remote working goes both ways. Firms such as Rehmann can hire professionals who might be miles or states away.
“You could be in Topeka or Dallas,” he said. “So we’ll spread our wings.”
While the company has offices in Michigan, Ohio and Florida, it has workers spread across 22 states.
of Certified Public Accountants says 75% of CPAs reached retirement age in 2020.
The same publication noted a poll by Deloitte last year found that 82% of hiring managers for accounting and financial positions at public companies and 69% at private companies said talent retention is a challenge.
That’s an area some feel has been exacerbated by the pandemic even beyond the Great Resignation. The shift to remote work in numerous industries allows people not just to work from home, but to work for companies in different regions of the country.
“You can work from home for a California firm, with California clients and
Kindlinger echoed that sentiment.
“I lost one to a Florida firm,” he said. “(The candidate) works 100% remotely.”
The solution, say some, is to look further afield for incoming talent. Sluis said one method of combating the decreasing numbers is to look at hiring people from other industries whose skills may translate.
“Accounting must get more creative and pull from other areas and industries,” he said, such as title companies, insurance, billing and even coding.
While Rehmann remains active in courting accounting students, Peacock stressed the diversity of work connected to the field and to his company.
Technology, too, is helping address the shortage. Those working remotely can always connect with co-workers through Zoom or Teams. Kindlinger said some parts of the job can now be done by texting documents or filling out forms via AI.
“Our firm, like others, uses AI,” said Peacock. “You can audit all the transactions more thoroughly. People with IT backgrounds love it.”
That’s another means of addressing the shortage: Changing the perception of the industry to attract people to the field.
Sluis said that is also essential.
“We have to make accounting more exciting,” he said.
While accountants must indeed deal with numbers, they also have to work with their clients.
“We become business advisors,” said Peacock. “We are not your father’s CPA firm.
“(And) there’s plenty of room at the inn.”
“For decades we’ve heard about how when the boomers retire, things would happen. COVID accelerated that.”
– Steve Peacock, principal, RehmannKindlinger Peacock Sluis
$7.2 million and change: That’s how much money is coming to northern Michigan from an early round of federal opioid lawsuit settlements.
The money will help communities in an eight-county northwest Michigan region address the fallout caused by the opioid crisis, with the potential to fund everything from addiction treatment programs to prevention initiatives.
It’s also the first step on a longer journey, with more money almost certainly on the way from settlements in the years to come.
While the opioid case was (and is) a national effort that has involved hundreds of players from across the country, it also has direct ties to northern Michigan. The Traverse City-based law firm Smith & Johnson Attorneys, P.C. was an integral part of the case and served as counsel of record for 36 municipalities north of Clare and across the Upper Peninsula. Both Grand Traverse County and the City of Tra -
verse City are among the municipalities Smith & Johnson represented.
According to Tim Smith, a partner at Smith & Johnson – and the attorney who took the lead on the firm’s dealings with the opioid case – the process has been “five years of intense work.” Smith
with a federal judge in Ohio – Northern District Judge Dan Polster,” Smith said. “All the cases across the country got sent to him.”
This type of litigation is called a multi-district litigation (MDL). MDLs happen a lot with these types of mass
For Smith, the consolidation led to one of the more memorable moments of his career: Standing in a courtroom in Cleveland, Ohio in early 2018, along with “hundreds of other attorneys,” hearing Judge Polster lay out exactly how the case was going to proceed.
“One of the first thing the judge told us was that, one, we were going to get this resolved. And two, that these monies were going to be used solely to abate the opioid epidemic and remediate the damages that these states, counties, cities, and villages have experienced because of this epidemic,” he said.
& Johnson and its clients filed their first lawsuits against opioid industry players at the end of 2017 and the case subsequently took years to work through the justice system. Per Smith, that type of slow-moving litigation is common for cases of this size and scope.
“We filed these things in a federal court in Michigan, but they all got consolidated
tort cases, because there are hundreds of cases across the country against the exact same defendants, alleging essentially the exact same causes of action, and seeking damages for the exact same types of injuries, said Smith.
“So it makes sense, from an efficiency standpoint, to get everything consolidated with a single court,” he said.
Smith described that early establishment of rules and expectations as “brilliant on (Judge Polster’s) part,” given the way that other mass settlements – like the tobacco litigation – haven’t always been used for their intended purpose.
“Municipalities sued the tobacco manufacturers, arguing, ‘Look, your product was wasn’t marketed honestly. You were luring young kids into cigarettes, getting them addicted early, and now we’ve got a public health crisis on our hands. We’re
“It’s been a complex process, but everything came together and it’s going to be a tremendous amount of money for our communities up here to use.”
– Tim Smith, partner, Smith & Johnson
spending public health dollars fixing this problem you created through your marketing,’” Smith said.
When the settlement money came to Michigan, the state at one point used one of the payments to balance the budget, he said.
“I think Judge Polster wanted to make sure that, if and when (these opioid lawsuits) got resolved, that these monies weren’t going to be utilized by the plaintiffs and municipalities in a similar way to what happened with the tobacco litigation,” he said.
It took five years, but Polster’s assurances did eventually come to pass. So far, there have been four settlements with major opioid players. A trio of drug distributors – Cardinal, McKesson, and AmerisourceBergen – will collectively pay up to $21 billion to plaintiffs over 18 years.
Additionally, Johnson & Johnson will pay up to $5 billion over nine years. That means $26 billion is making its way to municipalities throughout the United States to remediate the impacts of the opioid epidemic.
In accordance with Polster’s promises, the settlement also restricts how plaintiffs can spend the money. (A full list of remediation uses can be viewed at Michigan. gov) Potential options include education around opioids and addiction, treatment of opioid use disorders, efforts to prevent the over-prescribing of drugs, expanded
training and distribution for naloxone, and more.
$800 million in settlement funds is coming to Michigan, which has been hit hard by the crisis. In 2021, a record 3,096 people died of drug overdoses in Michigan – nearly three times the number of people killed in car accidents that year.
$7.2 million in payouts are headed to eight counties in northwest Lower Michigan, including Grand Traverse, Leelanau, Antrim, Kalkaska, Emmet, Charlevoix, Kalkaska, and Manistee. Other local municipalities in the area, including the City of Traverse City, will also see some settlement money.
Chris Forsyth, deputy county administrator for Grand Traverse County, said that the county has thus far received $573,000 of the “just shy of $3 million” it will get from the first round of settlements.
Forsyth said that the county commission will likely put together some sort of committee or task force to start working toward deploying these funds. He likened the process to what happened with the American Rescue Plan Act (ARPA), which brought $18.1 million to Grand Traverse County: County commissioners were responsible for deciding how to split that money up among a variety of grant recipients.
“Obviously, $18 million in federal funds is different than settlement funds
that are going to be spread out over the course of 18 years,” Forsyth said. “But, at some point, like with ARPA, we’ll go to the board of commissioners, we’ll explain to them the funds that we’ve got and the list of opioid remediation uses, and we’ll request that we develop a plan for how those funds will be distributed.”
Marty Colburn, city manager for the City of Traverse City, confirmed that the municipality has also received its first settlement payment, which he described as “not an exorbitant sum of money,” but enough to start making a difference.
Last fall, the Traverse City Police Department became one of the first law enforcement agencies in the state to add a social worker to its staff, hiring Jennifer Campbell to the role. Campbell, Colburn said, is working primarily “to address some of the concerns with opioid use and addiction in our community, and the problems that arise out of that.”
Currently, Campbell’s salary is paid for by a grant from the Michigan State Police.
“But the grant is only for a couple of years, so I’ve already recommended to the city commission that we take a look at utilizing these (opioid settlement) monies to maintain that social worker position,” Colburn said.
Only time will tell how much money northern Michigan will get from the opioid settlements. Smith said that five more defendants recently proposed a
global resolution settlement that would pay out “a little bit over $20 billion” to plaintiffs nationwide. Additional settlements or verdicts may follow from other defendants.
“It’s been a complex process, but everything came together, and it’s going to be a tremendous amount of money for our communities up here to use,” Smith concluded. “I truly believe these funds will do a lot of good for our communities.”
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Tax shelter. Health insurance. Savings account.
This misunderstood trifecta known as the Health Savings Account (HSA) allows consumers to use pre-tax contributions and its investment earnings to pay for eligible health expenses. This type of savings vehicle has the potential to remain free from taxation as long as the rules are followed.
The Basics
Generally speaking, a savings account is coupled with a high deductible health plan (HDHP). It’s often assumed that because most deductibles are greater than $2,000 that all health plans are high deductible. This is not the case. If you are uncertain of the exact type of medical plan you have, contact your agent or insurance carrier to confirm. It is the design that determines whether a medical plan has HDHP status.
The IRS requires active enrollment in only HDHP before you can open the accompanying health savings account. Remaining enrolled in this special medical plan is the ticket to making and receiving annual additions. It is the consumer’s responsibility to attest to this very important detail. If your status is altered (change jobs, switch plan types) during the calendar year, you may need to prorate your tax-free deposits. Pay attention to the maximum annual thresholds (grid below) that consumers are allowed to shelter, per contract size.
Last Month Rule: If you are enrolled in an HDHP from Dec. 1 through Dec. 31, you are considered eligible for the entire year, which is a nice back door to maximize annual contributions.
Money coming in is tracked via form 5498-SA. Data delivered to the IRS tracks how much income was sheltered into the HSA per year. Monies can be received by way of payroll deductions, employer contributions or other third parties. Money going out is reported on form 1099-SA. Total withdrawals from your
savings will show up here. The onus falls on the account holder to prove whether these distributions were used for qualified or non-qualified medical expenses. Save all receipts!
Your bank or financial institution produces these informational documents that confirm the amount of money received and spent. These forms are not required when you file, yet are important if you wish to reconcile your deposits and withdrawals. Always review and keep them with your records.
All of your HSA math should be detailed on form 8889. Its main purpose is to calculate your tax deduction, report distributions and account for your contributions while tallying any tax penalty that may have occurred during the year. This important document must be submitted with your federal tax return.
Provided that your tax return is open (or you have an active HSA), verification of all qualified medical expenses will be a hard requirement should an audit occur. IRS Publication 502 reveals exact health-related items that qualify. If it is determined that funds were used for non-qualified items, the IRS will impose a 20% penalty and the expenses will be taxed as ordinary income. Annual sums in excess of IRS limits are subjected to a 6% penalty each year the excessive funds remain sheltered.
• HSA money can be used on yourself, your spouse or eligible dependents (as identified on your federal tax return) even if they are not currently covered by the HDHP.
• HSAs and Medicare do collide. A portion of your annual tax-favored contributions may no longer be valid as it is considered double dipping if enrolled in original Medicare Parts A, B, D (one or a combo of any) while receiving contributions in a HSA. On the upside, once Medicare, Parts A, B or D become effective, your savings account can become more versatile. Penalty free, you may use these dollars for non-medical expenditures, yet ordinary income tax applies.
• Once in a lifetime traditional IRA rollover rule: Your HSA can be fully loaded by a traditional IRA transfer. The hitch: You must remain enrolled in a HDHP 12 months following the reassignment of dollars.
Be aware that this landscape can be tricky. Make no assumptions and always consult with your industry experts should questions arise. It’s the taxpayer’s responsibility to keep records tidy and follow the rules.
Andi Dolan is the owner of Traverse Benefits, a local independent insurance agency advocating and providing health, life and disability solutions for employers, individuals and Medicare beneficiaries across northern Michigan.
You can track your employees down to the keystroke with the right people and technology. You can tell how often employees touch their keypads, how many words per minute they type, what they print, and how often they pause. You can track IP addresses and GPS locations to know where employees work and drive. You can even use laptop cameras to take photos of employees. By some estimates, more than 60% of employers use some form of employee monitoring software. The upside of this software is that it can help measure productivity, stop illegal conduct and deter frivolous lawsuits.
But if the thought of being tracked bothers you, you’re not alone. Most employees feel uneasy about this technology, especially if they don’t know when, how or why it may be used. Because of the legal issues at play and the potentially negative impact on employee morale, employers should proceed with caution.
Here are a few issues you should consider before you implement employee monitoring.
The legal impact. There are many different laws at stake when it comes to employee monitoring. Under the Electronic Communications Privacy Act, companies may monitor oral and electronic communications if they have a legitimate business purpose or obtain employee consent.
Under the National Labor Relations Act, if you have a unionized workforce, you must obtain the union’s permission before you monitor employees. Under state laws, like those found in Connecticut and New York, you must provide written notice before monitoring employees. Then there are other garden-variety privacy interests to factor in. It gets complicated, especially if you have employees in multiple jurisdictions.
What constitutes a legitimate business purpose? What constitutes consent for monitoring? When does an employee really have a privacy interest? There’s plenty of room for argument.
The impact of monitoring on company culture. There is also the risk to company culture. Before you start
digitally hovering over your employees, ask yourself how your employees will perceive it. If you engage in routine monitoring of employees, your employees will eventually find out. It will erode trust. Your employees may become more focused on looking busy than being productive.
The impact on recruitment and public relations. You must consider how employee tracking could impact your company’s image and recruitment. If there’s a chance your monitoring activities would be seen as creepy, then you shouldn’t do it. I call this the “Front Page Rule.” In other words, would you be embarrassed if your actions landed on the front page?
If so, it’s a firm stop. For example, some companies have used laptop cameras to photograph remote employees to confirm they are working. For me, this is too far. There are potential privacy issues if the employee is remote and not adequately clothed (yes, it happens) or if family members or medications are spotted in the background.
If you obtain employee consent, provide proper written notice, only use monitoring technology for legitimate business purposes, and regularly check for new privacy and data laws, you will mitigate many risks with employee tracking. Some impressive software programs can legitimately track activity without making your employees too uncomfortable.
These programs can be powerful tools against lawsuits. For example, in one case, a remote employee sued her employer for wages claiming she worked more hours than she was paid. The company used employee monitoring programs to prove she worked less, not more. Even though the employee claimed the data was misleading because she printed off materials and reviewed them in a way that would not have been tracked, the company disproved her claim by showing she had printed very little. Ultimately, the employee lost her claim, and the court ordered her to pay the company for fraudulently entering her time.
Employee monitoring software can
also help with other issues, like investigating harassment or poor productivity. Despite the potential value, employers should proceed with caution. There are federal and state laws to consider. There are potentially severe impacts on company culture and public relations. If you engage in employee monitoring, provide written notice to your employees on how, when, and why monitoring will be used on the job. Avoid monitoring employees when they are not working or using their personal devices.
Further, remember that whatever data you monitor and store will likely be requested if there is a lawsuit. In other words, be careful with what you collect and how much you collect, you might be forced to turn it over. Finally, don’t forget that this is an area where technology and the law are quickly evolving. Be prepared to pivot as the law and technology change.
Anders Gillis is a labor and employment attorney at Parker Harvey PLC. He can be reached at (231) 486-4507; agillis@parkerharvey.com.
You must consider how employee tracking could impact your company’s image and recruitment. If there’s a chance your monitoring activities would be seen as creepy, then you shouldn’t do it.
There’s a common myth that estate planning is only for the wealthy; however, in reality, everyone should consider an estate plan.
Bank accounts, investment accounts, 401(k) or 403(b) plan accounts, your house, cars, jewelry, family heirlooms. Your estate may include all this and more, and your plan can determine what hap pens to all these when you die. A good plan will also focus on taking care of you as you age or if you become ill or incapacitated.
It’s all about control
Estate planning is about helping take control of your future, and asset management is only part of the picture. For example, a will is an essential part of an estate plan, and for parents, having one is the only way to name a guardian to raise your minor children if both parents die.
A well-designed plan will also include documents designating who can communicate with health care professionals and make decisions about what type of care you should receive if something hap pens and you can’t make those decisions yourself.
Ultimately, if you don’t make your own plan, your family may be left scrambling at an already difficult time. Someone will have to ask a court to decide who will act as guardian for your minor children (or maybe even for you), and state law will determine what becomes of your assets. Bottom line: If you don’t decide, someone will decide for you.
Remember, establishing a plan is only the beginning. Significant life events are likely to call for changes. It’s important to regularly review your plan to ensure it continues to meet your needs. You should consider whether your documents, asset titling, and beneficiary designations allow your assets to be handled the way you want them to be.
Five essential documents
Your situation’s complexity will determine which documents your plan requires; however, these five are often essential:
A will provides instructions for distributing your assets to your beneficiaries when you die. In it, you name a personal representative (executor) to pay final expenses and taxes and distribute your remaining assets.
A durable power of attorney for financial matters lets you give a trusted individual management power over your assets currently and/or if you can’t do it yourself. This document is effective only while you’re alive.
A health care power of attorney lets you choose someone to make medical decisions for you if something happens and you can’t make them yourself.
A living will expresses your intentions regarding the use of life-sustaining measures if you are terminally ill. It doesn’t give anyone the authority to speak for you.
By transferring assets to a revocable living trust, you can provide for continued management of your financial affairs during your lifetime, after your death, and even for generations to come.
The notion of making the decisions involved with estate planning may seem intimidating at first, but it doesn’t have to be.
The key is to rely on a team of trusted professionals, including a financial advisor, estate planning attorney, and accountant. They know the questions to ask and can help you avoid potential pitfalls. If you currently don’t have relationships with these individuals, a financial advisor may be a good place to start. He or she can discuss his or her role in the planning process and can refer you to an estate planning attorney who can work with you to draw up the necessary documents.
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A few years ago, I was participating in a leadership retreat on Thompson Island in Boston, Massachusetts. We were grouped in teams of seven and asked to tackle what seemed like a ridiculously easy problem. It became rather frustrating how little progress we were making after spending a surprising amount of time working to conquer the problem.
Eventually, after shaking off a bit of frustration, I asked, “What has someone suggested that we haven’t tried yet?”
One of our teammates recalled something that another teammate had suggested. The idea seemed good, so we tried it – and that was the winner! Why didn’t we try it initially, I asked? Someone recalled that the teammate who suggested it had led off with, “Well, this probably isn’t a very good idea.”
Was it humility or hesitation that caused her to precede her valuable suggestion with that phase? We didn’t know. But we all discussed and reflected on how it caused many of us to subconsciously discount the idea.
This story underscores the importance of thinking in terms of trying and of possibilities. It’s also a reminder of how we shouldn’t present our ideas in a way that might make them never see the light of day. When I hear someone lead off with a statement like that I try to “discount their discount.”
Try it on for size. The next time you hear someone discounting their idea, ask the group you’re engaged with to think about what is fantastic about the idea.
Just as with ideas, problems at work are often approached by someone suggesting why a solution can’t happen. When you hear your co-worker or yourself talking like that, try to recalibrate the discussion so that the group is thinking about what it takes to make it happen and how that might be worth it.
Certainly, it’s important to consider downsides or threats, but it’s often more helpful and important to think about the possibilities. Many of the issues we deal with aren’t life or death decisions – and there’s a lot to be said for what can be harvested when we think with a growth mindset.
People with a growth mindset, or a mindset of abundance, believe their superpowers, skills, talents and abilities can grow. They aren’t static. They do this by learning from others, having a solid strategy and working hard.
Organizations that authentically nurture a culture where innovation, belief in possibilities, growth and optimization are encouraged at all levels achieve more. Organizations that don’t do this, or have leadership that tries to fake it, will achieve less and lose the people that fuel important progress.
In terms of building an organization with a growth mindset, some prime points I’ve learned through my coursework at Harvard University is to create an ownership mentality in everyone on your team. Address concerns as a collective responsibility. For example, have a brain trust that includes representatives of all levels of the organization that can institutionalize feedback.
There are three clear rules, however. First, thoughts must be aimed at the initiative and not the person. Second, everyone must be ready to hear the truth. Third, no one takes anything for granted or personally.
1. Creating this space frequently so discomfort in candor is diluted and teammates become comfortable engaging this way.
2. Being explicit about establishing when and where, as well as the framework.
3. Establishing ground rules with input
from across the organization and putting them in writing as a set of norms.
Remember: You can measure the effectiveness of the team or the organization as a whole by assessing the gap in time between when issues are identified and brought to the surface for collaboration around solutions.
For those who may not be naturally inclined to think with a mindset of what can be, practicing daily gratitude is a great exercise. I suggest beginning each morning in the shower thinking about what you’re really grateful for from the day before and what is exciting about today. That will help rewire your mind and your perspective to be lit up at opportunities.
Benjamin Marentette serves as city clerk for the City of Traverse City, essentially functioning as city government’s chief operating officer with a broad range of responsibilities. He was recently accepted into Harvard Kennedy School’s Public Leadership Program, building on his completion of a fellowship at the Kennedy School in 2017. He holds an MBA with a concentration in finance and leadership.
Organizations that authentically nurture a culture where innovation, belief in possibilities, growth and optimization are encouraged at all levels achieve more.Ben Marentette, columnist
The Grand Traverse Bay Band of Ottawa and Chippewa Indians (GTB) is ready to enter the cannabis market with its first adult-use dispensary.
The shop, called Beach Fire Cannabis, held its grand opening in Acme Township March 30 and will operate out of a previously-vacant space at Turtle Creek Market, the convenience store and gas station adjacent to Turtle Creek Casino & Hotel.
According to an exclusive story in The Ticker, as a sovereign nation, GTB is not beholden to local regulations around things like recreational marijuana. So while Turtle Creek straddles the boundary between Acme and Whitewater town-
did hit a few delays. But we were able to work through that, and now we are at our opening date – one year later, but we are very excited to be one of the first dispensaries in the Traverse City market for recreational cannabis.”
According to Chad DePetro, general counsel for Grand Traverse Resort & Casinos, having a proper state license will make it easier for GTB and its marijuana enterprise to “integrate ourselves into the state system” and to “interact” with other players in the Michigan industry.
“Currently, there is legislation in the Senate and the House that would allow for a more normal government-to-government-based relationship between the tribes, collectively, and the state,” he explained. “So, we felt there was a necessity, at least
“Being a part of the community is super important to us. We all live here and work here, and we love Traverse City, so being a very TC-centric brand was the intention from the get-go – from the naming and branding to the design aspects and the store interior.”
- Steve Timmer, chief marketing officer, Grand Traverse Resort & Casinosships – neither of which allows adult-use marijuana licensing – GTB is able to open its own dispensaries so long as they are located on “trust land.”
Native American trust land, per the U.S. Department of the Interior, is land in which the federal government holds legal title, but the beneficial interest remains with the individual or tribe. GTB holds numerous pieces of trust land throughout northern Michigan, most recognizably the Turtle Creek Casino property off M-72 and the Peshawbestown reservation in Leelanau County.
In August 2021, the GTB Tribal Council voted to enact a “Tribal Marijuana Ordinance,” which effectively opened the doors for the tribe to engage in an integrated marijuana business. According to Rich Bailey, who serves as CEO for Grand Traverse Resort & Casinos, the tribe has been working ever since on its entry into the marijuana market – a journey complicated by GTB’s decision to go through a formal licensing process with the state of Michigan.
“One of the unique pieces for us was being the first tribe to be licensed through the state of Michigan [for adult-use cannabis],” Bailey explained. “Having to go through that process, we needed to pave some new ground – and unfortunately, we
for now, to have more of a state license relationship, so we can get [cannabis] product on and off our jurisdiction, and normalize buying and selling from wholesalers throughout the Michigan market.”
Beach Fire will stock a range of different cannabis products and will also carry a small inventory of clothing and apparel, part of what Steve Timmer – chief marketing officer for Grand Traverse Resort & Casinos – describes as an effort to make Beach Fire Cannabis an identifiable northern Michigan lifestyle brand.
“Being a part of the community is super important to us. We all live here and work here, and we love Traverse City, so being a very TC-centric brand was the intention from the get-go – from the naming and branding to the design aspects and the store interior,” Timmer explained. He added that Beach Fire Cannabis is already looking at local community partnerships to underline its outdoor lifestyle values.
There’s also the possibility that GTB’s Beach Fire Cannabis brand could eventually open additional stores in other parts of northern Michigan. The top candidate would likely be somewhere on GTB’s reservation in Leelanau County, near Leelanau Sands Casino.
Todd
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• 24/7 Crisis Line 1-833-295-0616
• 24/7 Crisis Welcoming Center at 105 Hall Street, Traverse City
• Mobile Crisis Teams for Adults and Children North Hope Crisis – A new crisis home with six beds for adults that Northern Lakes and Hope Network are opening in April!
Integrated Health Services - Northern Lakes Integrated Health Clinic
• Primary health care open to all adults and children in the community, regardless of insurance or ability to pay Kandu Island Drop-In Center – a safe place to be, for all
Anti-Stigma and Public Education
• Mental Health First Aid classes
• Tools4Resilience virtual education series - returning this May!
• Community events, displays, art shows
• Psychiatry
• Therapy
• Counseling
• Case Management
• Autism Applied Behavioral Analysis
• Specialized Residential Services
• Long-term Services and Support
• Traverse House & Club Cadillac Clubhouses
• See full list at northernlakescmh.org/services
Public Community Mental Health Service Programs may serve 4 priority groups under the State of Michigan contract
Adults with serious mental illness
Children with serious emotional disturbance
People of all ages with intellectual/developmental disabilities
Those with co-occurring substance use disorders
Traverse City entrepreneur Courtney Lorenz seems to have figured it out. The chef-dietician-fitness expert owns Cultured Kombucha. Her one and only product is kombucha, a fermented tea drink that appeals to health-conscious consumers. It hit the Up North scene about eight years ago.
Before moving to Traverse City, Lorenz managed a catering staff of 30 employees at the headquarters of a major downstate corporation.
“I was 24 years old and on track for the white-picket-fence lifestyle,” she said.
Then she discovered something about herself.
“My real passion is to inspire people on their health and wellness journey,” she said. “For me, kombucha is a good way to make that happen. I’d been drinking it for years.”
Lorenz quit her job, moved north and worked on a farm for a while. She then began brewing and bottling five-gallon batches of kombucha for sale at the Traverse City farmers market. Gradually, she began to see it as a business opportunity that fit into her core values.
She rented a 600-foot workspace, increased production, and started selling bottled kombucha to Cuppa Joe’s coffee shops and Edson Farms Natural Foods. By late 2016, she was selling to more than 20 stores – most of them in northern Michigan. Her next step was to convince local Meijer’s managers to stock her products.
Slowly but steadily, Lorenz’s business grew. That allowed her to lease a 5,000 square-foot building in the Blue Star industrial area near Chum’s Corner. She expanded production capacity, connected to a supply chain for Chinese tea leaf shipments, and hired a few employees. A year later, Cultured Kombucha had more than 100 retail customers across the state.
Lorenz could have kept her company that size, or grown it only slightly, but it didn’t work out that way. Last October she got a call from decision makers at Meijer headquarters. They asked if she would sell Cultured Kombucha drinks in all of their 120 Michigan stores.
She had a decision to make: The Meijer deal would double her business, but it would also mean hiring more employees and, in the long run, probably necessitate major capital investment.
It helped that Cultured Kombucha developed a proprietary brewing process, which adds flexibility to the production schedule.
But other questions were more personal. Would her heart be in it? Was she up to the challenge? She had grown a successful company built on solid business processes while remaining true to her ideals of respecting people and the planet.
Lorenz decided to go for it.
The company is keeping up with orders, though the true test for sustaining the current production pace could come during the summer when sales usually peak. Lorenz says she realizes that at some point she will probably need to rent or lease a much larger building, so she’s open to finding an investor.
Meanwhile, she is closely monitoring cash flow. She has eight staff members who help produce the drink, which now comes in eight flavors. She’s embracing growth and the wisdom of having a diversified customer base.
“This is an adventure,” she said. “Things look great. We’re adding new customers every day. We just signed a deal to provide kombucha to a chain in Ohio and Illinois.”
She predicts the company will be “selling to customers in 14 states by the end of 2023.”
The Grand Traverse Area Manufacturing Council (GTAMC) sponsors this column. Its mission is to support a sustainable and globally competitive manufacturing sector for a stronger economy; makegreatthings.org.
“We’re adding new customers every day. We just signed a deal to provide kombucha to a chain in Ohio and Illinois.”
– Courtney Lorenz
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Receiving proper annual maintenance by a qualified technician is one of the most important steps to take to prevent future problems with your business's heating and cooling system While minimizing the risk of a breakdown, maintenance will ensure your HVAC system is running as efficiently as possible.
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Anderson’s IGA
Aroma’s (West Bay)
Bayside Market
Boone Street Auto
Bunting Market (Cedar)
Fresh Coast Market
Folgarelli’s
Francisco’s
Grumpy’s Mobil (M-72)
Horizon Books
Maxbaurer’s Market
Meijer (Acme)
MI Market (Suttons Bay)
Oleson’s Food Markets
Peninsula Market
Roy’s General Store
Shady Lane Market (Suttons Bay)
All Shell Stations
Terrace Market
You'll
We'll
Tom’s Food Markets
Village Market (Elk Rapids)
Westside Beverage
Honor Bank in Traverse City announces the following personnel news:
1 - Dixie Lagerquist Hoeh has been promoted to first vice president, head of banking, and is also now a member of the senior leadership team. She joined the bank in 2000 and served in multiple retail leadership roles, most recently as vice president of retail.
2 - Misty Lucyk has been named help center manager. Lucyk returned to Honor Bank in 2021 to help start the local Help Center. She brings a decade of experience in the bank’s retail branch network.
3 - Logan Simerson has been promoted to information systems manager. He joined the IT department in early 2022.
5 - Pracilla Venhuizen is the bank’s new human resources manager. Venhuizen brings more than a decade of local experience in both human resources and financial institution management.
6 - Sarah I. Allaben , board-certified physician assistant, has joined M unson Healthcare Rheumatology in Traverse City.
7 - Dr. Jamshid Amanzadeh has joined the Novello Specialty Clinic in Traverse City as a specialist in nephrology. Dr. Amanzadeh focuses on chronic kidney disease, hypertension, glomerulonephritis,
board-certified nurse practitioner.
10 - Tony Anderson , general manager of Cherryland Electric Cooperative in Grawn, was recently named president of the National Rural Electric Cooperative Association board of directors. Anderson is the immediate past vice-president and previously served as secretary-treasurer. He has served as Cherryland’s GM since 2003.
11 - Rachel Johnson has been named the next CEO of Cherryland Electric Cooperative in Grawn. Johnson will assume her responsibilities when Cherryland’s current general manager, Tony Anderson, retires in June. Johnson has served as the cooperative’s member relations manager for the last 10 years.
12 - Kerry Winkler has been named director of community giving at United Way of Northwest Michigan. Over the last two decades, Winkler has served women with her local women’s publication.
CENTURY 21 Northland in Traverse City announces the following:
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18 - Steven J. Hammon , golf course superintendent at Traverse City Country Club in Traverse City, has been as re-elected to the board of directors for the Golf Course Superintendents Association of America. Hammon is a 34-year member.
19 - Benjamin Marentette , city clerk for the City of Traverse City, has been accepted into Harvard University’s Kennedy School Public Leadership Program. The program builds upon the Senior Executives in State and Local Government Fellowship that Marentette completed at Harvard in 2017. Marentette has served as city clerk since September 2011.
Resort and most recently helped open the Delamar Hotel in Traverse City.
22 - Jeanette Williams has joined Krios Consulting in Traverse City as partner and principal consultant. She joins Krios founder Bill Palladino in bringing the company’s work in meeting facilitation, positive psychology, innovation, change management, and nonprofit strategy to a larger audience in northern Michigan.
23 - Roger Grotefendt is the 2022 Grand Traverse County Sheriff’s Office Law Enforcement Division Employee of the Year. He is an evidence technician, community police officer, field training officer, and a negotiator with the emergency response team.
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20 - Jeff Mertz , a Certified Ethical Hacker and Cisco Certified Network Professional with 23 years in the IT industry, has been promoted to director of support services at Safety Net. Mertz has been with Safety Net for more than 15 years, most recently as a senior network engineer.
21 - Brandon Sheldon has joined Golden Swan Management in Traverse City as director of operations. Sheldon, a hospitality veteran, spent almost a decade leading teams at Mackinac Island’s Mission Point
24 - Jimmie Wood is the 2022 Grand Traverse County Sheriff’s Office Corrections Division Employee of the Year. He is a CPR/First Aid instructor, lead firearms instructor and a corrections training officer.
Please send Newsmakers by the 10th of the month to news@tcbusinessnews.com
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