Traverse City Business News - January 2024 by Northern Express

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

JANUARY 2024 • VOLUME 28 • NUMBER 6

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BRIEFLY TCNEW TECH NOW PART OF 20FATHOMS 20Fathoms and TCNewTech recently announced TCNewTech will become a program fully owned and operated by 20Fathoms. The TCNewTech pitch competitions will return in the spring under 20Fathoms’ leadership. “TCNewTech is the soul of our region’s startup community and the 20Fathoms team is honored to take over management of the program,” said Eric Roberts, executive director of 20Fathoms.

more than $114,000 to local farms. Applications can be submitted via crosshatch. org/micro-loan through Feb. 7.

RHYTHM FIT OPENS IN TC Rhythm Fit, a 2,000 square-foot boutique fitness studio, has opened its doors in Traverse City, offering a full roster of personal training, group fitness, rhythm cycling, cardio dance classes and more. Rhythm Fit is owned and operated by former professional dancer, mobility expert and certified personal trainer Emily Fine. Fine previously owned Soul Step Studio and also taught various body movement and yoga classes around town. Rhythm Fit is located at 1030 Hastings St., Suite 150. Class descriptions and schedule available at rhythmfittc.com.

NMC PIONEERS IMPACT INVESTMENT The Northwestern Michigan College Foundation (NMCF) and NoBo Mrkt, a café|bar|restaurant located in the Commongrounds building in Traverse City, have announced a first of its kind impact investing partnership. Thanks to a specifically-designated gift, the NMCF is investing $50,000 in the business with the goal of increasing innovation in northern Michigan and creating new benefits – such as paid internships and business opportunities - for NMC’s Great Lakes Culinary Institute students and graduates.

ORYANA OFFERING MICROLOANS Oryana Community Co-op in Traverse City is once again partnering with local organizations to offer zero-interest microloans to small farmers and food producers. These $500-$10,000 loans aim to support the growth of small-scale agriculture, increasing the diversity and resiliency of the region’s food system. To date, these microloans have provided

NEARLY $1.6 MILLION FOR UPSKILLING Forty-two businesses in northwest Lower Michigan will receive a total of nearly $1.6 million from the first round of fiscal year 2024 grants from the state’s Going PRO Talent Fund. Employers will use the funding to train new and existing employees. Recipients span multiple industries and include eFulfillment Service, Century, Commongrounds Cooperative, Cultured Ferments, Elk Rapids Engineering, Farm Club, Great Lakes Orthopaedic Center, Left Foot Charley, RJG, Skilled Manufacturing, Shoreline Fruit, and Xpert Fulfillment. For a complete list of award recipients, visit Michigan.gov/TalentFund.

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BRIEFLY attorney and military veteran Josh Traeger, the firm focuses on business law, white collar criminal defense, veterans’ assistance, and employment law. The office is located at 733 E. Eighth Street, Ste. 207; truenorthlegalgroup.com. EXPANSION FOR CONSTRUCTION FIRM Miller-Davis Company, a construction management firm headquartered in Kalamazoo, has expanded its operations with the opening of a Traverse City office. The firm was involved in the renovation of Eastern Elementary School and has built a team of construction professionals based in Traverse City. The new office is located at the 20Fathoms co-working space downtown. The firm is currently overseeing a project between The Greenspire High School and Northwestern Michigan College.

Aspire North’s dedication to Habitat for Humanity – Grand Traverse Region. The award honored Aspire North’s commitment to the organization through financial donations as well as supporting the group through volunteering, promotion and advocacy.

NORTHERN INITIATIVES REACHES $100M MILESTONE Marquette-headquartered Northern Initiatives, a nonprofit lender supporting small businesses in Michigan, has reached $100 million in loans as it celebrates its 30th year in operation. The northwestern region of Michigan is served by the organization’s Region 2 office, which has made 192 loans worth nearly $9.8 million.

MUNSON OPENS PRIMARY CARE CLINIC Munson Healthcare has opened the Foster Family Primary Care Clinic in Traverse City, part of its plan to expand access to primary care in northern Michigan. Located at 550 Munson Ave. within the Foster Family Community Health Center, the clinic offers primary care to infants, adolescents, and adults and gives patients greater access to services located within the building, including laboratory, radiology, and pharmacy services. Dr. Thomas Yax and Dr. Joanna Heindl along with physician assistants Sarah Shepler and Susan Cogswell are accepting new patients at this location.

LOCAL MOVING BUSINESS JOINS NATIONAL CO. Grand Bay Moving & Storage in Traverse City is now a part of Wheaton World Wide Moving’s agency network. The previously independent company now joins more than 350 Wheaton agents across the country. The van line is the fourth largest U.S. relocation company.

REALTOR GROUP NAMED PARTNER OF YEAR Aspire North Realtors in Traverse City was recently awarded Affiliate Corporate Partner of the Year at the statewide Habitat for Humanity Affiliates in Motion conference, recognizing

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NEW: REGIONAL ECONOMIC ECOSYSTEM REPORT Traverse Connect has released its first-ever Regional Economic Ecosystem Report. The report highlights the organization’s work to create a healthy economic ecosystem via its business attraction and growth efforts, in addition to its talent attraction and retention efforts. Find the report at TraverseConnect.com.

NEW LOCATION FOR FCB The Traverse City office of First Community Bank has moved to a newly-remodeled location at 107 Cass Street. This branch is a full-service office.

6 JANUARY 2024

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COMMENTARY BY JODY LUNDQUIST TRIETCH

EDITORIAL & BUSINESS OFFICE P.O. Box 4020 Traverse City, MI 49685 231-947-8787 ON THE WEB tcbusinessnews.com PUBLISHER Luke W. Haase lhaase@tcbusinessnews.com

institutions and angel investors must have a high degree of confidence that the company can and will succeed. Without the ability to supply the otherwise requisite three years’ worth of financial statements, the first request an angel investor will make is to be provided the business plan and a pitch deck. A pitch deck and well-crafted business plan must include the following: defining your target market, understanding your competition, and setting realistic financial goals. But it’s not enough to simply go through the exercise of creating a few documents for closing an investment – you must include achievable milestones. The use of proceeds of the investment must be demonstrated with results. At Northern Michigan Angels and Boomerang Catapult, we constantly ask our portfolio companies, “How are you progressing against your milestones?” These milestones mark a company’s progress toward success. The milestones for the company could be a revenue target, profitability, product launch, or regulatory approval. As an angel investor, the destination is a successful exit: return of, and on, our investment. For an entrepreneur, the path from launch to exit is not straight or clearly defined; it’s an ongoing process that requires continuous refinement. It is a direct outcome from a constant loop of planning, execution, and assessment. With the economic uncertainty of the past few years, the role of financial forecasting and budgeting cannot be overstated. Even the sole business owner that manages based on gut and bank balances benefits from consistent review of a solid financial plan to spot trends, take necessary actions, and ensure resources are effectively allocat-

ed for growth and cost management. Building on a solid financial foundation, growing businesses turn to Key Performance Indicators (KPIs) to navigate the complexities of growth and change. These indicators act as a compass, providing direction and feedback on the journey toward those meticulously set goals. They are crucial for any company to monitor its health and trajectory. KPIs – like revenue, customer acquisition cost, churn rate, and cash burn – are not just numbers, they tell the story of a business’s journey. Consider ATLAS Space Operations, a company specializing in ground-to-satellite communications, which relocated its headquarters to Traverse City thanks to growth capital investments by both Boomerang Catapult and Northern Michigan Angels. A meaningful KPI for ATLAS is ‘Pass Success Rate,’ a metric that quantifies the reliability and efficiency of contacts between ground antennas and satellites in orbit. Monitoring this KPI is vital for maintaining client trust and securing contracts in the competitive space technology market. At Taste the Local Difference, with its mission to champion local food, the ‘increase in market reach’ is an important KPI. It reflects the percentage growth in their audience base on digital platforms, directly correlating to enhanced local food awareness and consumer engagement. For teams of any size, even the most brilliant business plan with clearly identified KPIs will falter if its team members aren’t on board. Effective communication and transparency are paramount. With this, it’s important to note that in the dynamics of the modern workplace, it’s autonomy that fuels engagement more than rigid control.

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With nearly 900,000 small businesses in Michigan employing nearly half of its workforce, their success is critical to growing our local communities. During the pandemic, small business growth surged in our state. These businesses, like all new businesses, are subject to the same forces that all small businesses face – half of them will fail in the first five years. With this sobering knowledge, why then, if businesses with a formal business plan are 2X as likely to succeed, do only 33% of businesses have one? Consistent with statewide data for small business business growth, Northern Michigan’s business activity suggests a positive trajectory. The business leaders, companies, and technologies explored throughout this issue are interconnected by a common thread – strong practices in strategic planning, continual monitoring, and diligent execution. None of the successes highlighted here happened by accident – after all, luck favors the prepared. With finite financial and human resources, the best thing that can happen for a startup is to succeed. The next best thing is to fail fast. Why? Because failing fast means that finite human and capital resources are not wasted. The most common reasons for failure result from failure to adequately assess market/product fit, pricing products inappropriately, failing to defend against competition, failing to build an effective team, or not maintaining sufficient capital. Small businesses must be investible. The differences between seeking capital from a financial institution and that of an angel investor have to do with the company’s ability to affirm historical performance and provide collateral. But both financial

Strategizing Success: The power of planning and KPIs in northern Michigan’s business landscape With employers continuing to navigate the challenges of managing a distributed workforce, the question is no longer where teams will work, but how. Success will depend on the ability to provide adequate tools and set clear expectations. Automation and artificial intelligence will certainly emerge as the workhorses amplifying productivity of the workforce over the coming years; however, communication and clear actionable steps will be necessary to truly engage teams to achieve desired outcomes. As we step into 2024, we can’t ignore the central role of technology in modern business. Startups and entrepreneurs in Michigan and Traverse City are fortunate to have access to expanded programming through entities like 20Fathoms that can assist them in harnessing the power of technology and entrepreneurial excellence. The Michigan Economic Development Corporation, SCORE, and Small Business Association of Michigan all have local representatives whose specific purpose is to help our local businesses succeed. As we navigate 2024, let’s remember that detailed planning and diligent monitoring through KPIs aren’t just business strategies, they are the linchpins of success. In the words of Peter Drucker, ‘What gets measured gets managed.’ With a clear vision and measurable objectives, Traverse City businesses are set to thrive in an evolving marketplace. Jody (Lundquist) Trietch is chief financial officer of Boomerang Catapult LLC. She is also owner of Taste the Local Difference and executive director of Northern Michigan Angels, an angel investment organization.

The Traverse City Business News Published monthly by Eyes Only Media, LLC P.O. Box 4020 Traverse City, MI 49685 231-947-8787 Periodical postage qualification pending at Traverse City, MI. POSTMASTER: Send address changes to The Traverse City Business News, PO Box 1810, Traverse City, MI 49685-1810. The Traverse City Business News is not responsible for unsolicited contributions. Content ©2024 Eyes Only Media, LLC. All rights reserved.

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FROM THE DESK OF... Sam Brickman, Founder and Owner of Bubbie’s Bagels By Art Bukowski Not all heroes wear capes, and not all business leaders have desks. Take Sam Brickman, who owns and operates the tremendously popular (and outrageously delicious) Bubbie’s Bagels in Traverse City. Wherever he sets his laptop down in his busy eatery is what becomes his desk, though he often gravitates to the flour stacks for this purpose. This month, Sam walks us through some items that are important to him on a professional and personal level. If you have a suggestion for future “From the Desk Of” feature, please email info@tcbusinessnews.com with who you’d like to see, and why!

The Mile End is a restaurant in New York, sort of like a new school deli. I always find inspiration in this cookbook of theirs.

I go through a ton of these. I’m constantly writing notes about all sorts of things

“On Food and Cooking: The Science and Lore of the Kitchen” is basically my bible of food, and I’d highly recommend it.

Loma Farm (in southern Leelanau County) is starting to do our rye flour and whole wheat flour. It’s been really fun to work with local producers like them.

My checkbook is always around, and you’ll see me with it a lot. I’m constantly writing checks to suppliers, payroll checks, donations. It feels like it’s something that’s always in my lap.

Stockist Coffee, which comes from Jeff who roasts out of Rough Pony. He’s a good friend of ours and it’s always been our coffee.

Our salt stick with scallion cream cheese. I pretty much eat this exact combination every single day. It’s amazing.

High gluten flour, which is what we make the bagels out of. Bagels are probably the highest gluten bread possible, so it’s super important to have a high-protein, high-gluten flour. Our bagels are a five-day process. They’re all sourdough-started. The bagels in the coolers on the racks were actually made yesterday, and they’ll be baked tomorrow. They cold ferment in the cooler for 48 hours, which is why they get that nice, blistery crust on the outside and the chewy, flavorful interior. It’s a long process, but that’s why the bagels are as good as they are.

10 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

WHAT2WATCH WHAT2WATCH

What will make headlines in 2024

By Craig Manning & Art Bukowski

It’s January and that means it’s time for the TCBN’s list of happenings in and around Traverse City as we head into the New Year. Here are previews of the people, products, places, and policies that business owners and influentials should be watching in 2024, ranging from the massive Grandview Parkway reconstruction to the plan to develop the region into a freshwater research epicenter to pending elections, and much more. Grandview Parkway Traverse City is no stranger to gridlock. In the past five years alone, summer traffic patterns in and around town have been disrupted by downtown bridge replacements, a complete revamp of Eighth Street, and intersection-to-roundabout conversions. In 2024, though, northern Michigan is staring down the barrel of what could be the biggest road project most local residents have ever seen: The reconstruction of Grandview Parkway. For years, the Michigan Department of Transportation (MDOT) has been sketching out plans to invest some $27 million in revamping the parkway, from 500 feet west of Division Street and running east to the north side of the M-37/Garfield Road intersection. Over the course of 2024, MDOT will rebuild that entire two-mile stretch of highway, including asphalt, curb and gutter, sidewalk, drainage and repairs to Murchie Bridge. The project will also redesign several intersections along the route to incorporate more crossings and other pedestrian or cyclist-friendly features. MDOT has already commenced work

on certain parts of the project, including the installation of temporary traffic signals at three key intersections – Railroad/East Front, Railroad/Washington, and East Front/Milliken – to prepare for traffic detours. But the majority of the work will begin in the spring, with MDOT set to break the project up into two segments: an eastern segment from Garfield Avenue to Front Street; and a western segment from Front Street to Division Street. Work on the eastern segment is “anticipated to begin in March,” according to the city, and is slated to be finished in time for the National Cherry Festival in July. During construction, westbound traffic will be detoured onto Railroad Avenue and Eighth Street. Crews will resume work on the parkway after Cherry Festival wraps, with the western segment demanding lane closures and traffic shifts for both directions of traffic. Work on the second segment is expected to last until November. Given that Grandview Parkway is arguably the key east-west thoroughfare in Traverse City – as well as the gateway between Grand Traverse and Leelanau

> GRANDVIEW PARKWAY

counties – the construction project is expected to have significant impact on local traffic flows, commute times and overall mobility. The question is how far those impacts will reach – and what the consequences might be for businesses, schools, events and more. “The Parkway will be a big project, but I think our region is prepared to work through it,” said Traverse Connect President and CEO Warren Call when asked to predict any potential economic fallout from the project. “There has been a lot of thoughtful planning and preparation, and I believe the Traverse City Downtown Development Authority (DDA), BATA,

and Traverse City Tourism (TCT) will be putting out joint communications, transportation info, and wayfinding to help visitors get around.” Communication is key to the project, says TCT President and CEO Trevor Tkach. “We as institutions – TCT, the City of Traverse City, the DDA, Traverse Connect, BATA, and TART Trails – are going to be doing continuous communication on this issue, so that we know where we are in the project at all times and how to explain the detours and options for locals and visitors alike,” he said. While Tkach says he doesn’t expect the Parkway closure will depress travel trends

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

WHAT2WATCH in northern Michigan, he does think certain hotels, businesses, or events could prove more frustrating for visitors to get to than usual. “What I’m more concerned about (than people not coming here) is their behavior once they get into market,” Tkach said. “I do have concerns for our downtown businesses. We have a lot of hotels on the east side, and it’s going to be very difficult for visitors – and locals! – on that side of town to get downtown for a long time.” Tkach also points to the Bayshore Marathon – which starts and ends near Central High School on Memorial Day weekend – as an example of a major high-traffic event that could prove to be more logistically challenging than usual due to the road closures and detours. In general, Central High School will likely be one of the toughest local landmarks to access. When asked how Traverse City Area Public Schools (TCAPS) is plotting its transportation strategy, Christine Thomas-Hill – the district’s assistant superintendent of finance and operations – zeroes in on Central immediately. “Central High School will definitely have the biggest impact of all our schools,” Thomas-Hill said, noting that detoured traffic and a temporary light

at the Milliken/East Front intersection will almost certainly impact traffic flows to and from the school. “It’s going to be a congested travel area, so we’ll do the best we can to re-time those buses so they can get to school on time. We’ll also do some communication directly to our parents and our student drivers at Central to make sure they understand what’s coming and how best to use the detours.” Speaking of buses, BATA Communications Director Eric Lingaur says the organization is hard at work on a modified transit plan that will allow everyone to get where they are going on time. “BATA is going to focus on helping people navigate the construction and avoid being stuck in traffic by modifying its free, high-frequency Bayline route and encouraging people to use park-and-ride locations along the route,” Lingaur said. “BATA will be partnering with the DDA on a promotional campaign to educate residents and visitors on public transit options to access downtown during the construction.” Lingaur also notes that BATA will “be opening its new LaFranier Road Transfer area” – which includes a 40spot park-and-ride lot – in May, which he says “will provide another way for people to easily get downtown.” Con-

struction on the headquarters is slated to finish out in July or August. For his part, Call says he is also hopeful that locals take advantage of BATA park-and-rides or other similar opportunities to get their cars off the road and to minimize overall traffic around town. “I see this project as an opportunity to highlight the walkable, bikeable, and public transport infrastructure that we already have in place to support the economy,” he said.

> MARIJUANA SHOPS

Marijuana Shops One of the big questions at the beginning of 2023 was what the City of Traverse City would look like once it finally issued its first retail licenses for adult-use marijuana. Heading into 2024, the question now is how many of those licensed retailers will still be standing come 2025. Last March, the city licensed 16 locations within the city’s 8.6 square miles to sell adult-use marijuana. As of New Year’s Day 2024, 13 of those 16 locations are operating as functional

dispensaries, while another – Dunegrass – is slated to open a store at 440 East Front St. early this year. The other two licensed operators – one at 314 Munson Ave. and one at 934 Hastings St. – have not yet announced opening plans, but could get up and running in 2024. As Traverse City’s cannabis market matures and settles, local operators predict some degree of attrition among the city’s stores. Typically, Michigan communities that have opted in for recreational weed sales have seen an initial burst of demand followed by a drop-off. The market then stabilizes, with some shops

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WHAT2WATCH

> INDOOR SPORTS COMPLEXES finding enough regular customers to persist and others going out of business. Speaking to TCBN sister publication The Ticker in October, Cloud Cannabis Founder John McLeod pointed to Gaylord as an example. “(Gaylord) initially gave out more than 20 licenses,” McLeod said. “There have maybe been 10 stores that opened, and three of those have closed. So, it’s one of those things where the market will determine how many stores is the correct amount.” Similarly, Justin Elias, president and founder of PUFF Cannabis, predicted that “20-25% (of Traverse City’s stores) will end up shutting down,” while Doug Hellyar – chief operating officer for Lume Cannabis Co. – estimated “a 25-30% reduction over the next two to three years.” Despite the anticipated contraction of the local market, Traverse City dispensaries have seen an uptick in business since the city went from a medical-only market to a recreational cannabis scene. McLeod says that Cloud did four to five times the sales this past summer that it did during summer 2022. Elias, meanwhile, says PUFF was turning away 70-100 walk-ins daily during the medical-only days; now, the store can serve those customers. Another marijuana-related development to watch this year: Traverse City’s first opportunity to share in tax revenues from recreational cannabis. Last year, municipalities in Michigan received $51,800 in tax revenues for each dispensary operating within their jurisdictions. A similar payout rate this year would put hundreds of thousands of dollars in the coffers for both the City of Traverse City and Grand Traverse County. Indoor Sports Complexes For years, a local group calling itself the Traverse Indoor Sports Coalition (TISC) has been investigating potential opportunities to bring new sports complexes to the Traverse City area. Heading into 2024,

Max Anderson

Al Zelinski

that possibility seems closer to reality than ever before. In March 2023, The Ticker reported that TISC was in serious talks with TCAPS about partnering to build two new community fieldhouses at Central High School and West Senior High, respectively. That public-private partnership would open up the option of paying for the complexes through a combination of TCAPS bond funds and private donations. TCAPS would own and operate the facilities – and use them for school sports, as needed – but the fieldhouses would also be available for community use. TISC – which includes a variety of government, nonprofit, and business partners – has been working since 2018 to get the idea of indoor sports complexes off the ground in Traverse City. Traverse City Tourism and Traverse Connect – both of which are a part of TISC – have also repeatedly touted the potential economic, tourism, and quality-of-life benefits such facilities. TCT President and CEO Trevor Tkach, for instance, has noted that the ability to host indoor sporting events in northern Michigan could help bolster Traverse City’s shoulder-season tourism months, thereby bringing more people to town and more money to local hotels, restaurants, and other businesses. Speaking to The Ticker in October, Tkach said the TISC project looked to be on track, with “real” interest from TCAPS in seeing these types of venues come online. The TCAPS board, meanwhile, has been circling the idea of pursuing a new bond request as soon as the November 2024 election – a request that could include the fieldhouses. The last TCAPS bond campaign, a 2018 request that passed with a 68% margin in Grand Traverse

Cindy Ockert

Troy Noble

County, raised $107 million for the district and helped pay for numerous improvements, including the brand-new Innovation & Manufacturing Centers currently under construction at both high schools. If voters were to approve a fall 2024 TCAPS bond – and if the bond were to include the new fieldhouses – TISC has said a project groundbreaking could occur as soon as spring 2025, potentially making the fieldhouses available for community use by late 2025 But nothing is set in stone just yet. TCAPS Superintendent John VanWagoner told the TCBN that the TCAPS board “has yet to decide if there will even be a bond, and has not identified (the fieldhouses) yet as a project within the pre-planning.” Freshwater Research & Innovation Center Within a few years, northern Michigan could be home to one of world’s leading blue economy hubs. 2023 was a crucial year in that push, and 2024 is on track to be even bigger. The World Bank defines the term “blue economy” as “the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.” But the blue economy can also extend to other coastal communities, including those ringing the Great Lakes. The Traverse City Freshwater Research & Innovation Center – a collaboration between Discovery Center & Pier, 20Fathoms, Michigan Technological University, Northwestern Michigan College and Traverse Connect – will eventually put a multi-million-dollar blue economy headquarters on the shores of West Grand Traverse Bay. The goal is to establish the Grand Traverse region as a global hub for applied freshwater innovation, offering research, education, commercialization, new business incubation, and startup

Cory VanBrocklin

> FRESHWATER RESEARCH & INNOVATION CENTER acceleration programs. The Freshwater Research & Innovation Center made big gains in 2023, scoring both a $1.6 million grant from the federal government and a $15 million allocation in Michigan’s 2024 state budget. Project partners have shared plans to break ground on the first phase of the West Bay headquarters in December 2025 – if not earlier. The $15 million in state budget money is coming from the American Rescue Plan Act (ARPA), which means it must be allocated by the end of 2024 and spent by the end of 2026. While much of the on-the-ground work on the Innovation Center won’t start for another year or two, 2024 will still be a crucial year for the project. Project partners still need to raise $11 million necessary to reach the $26 million price tag that’s been estimated for the first phase. That initial phase is projected to take 18 months and will include construction of a 35,000-squarefoot building with research, lab, classroom, and business incubation space. A second phase could follow, though its uses, tenants, and timelines are still to be determined. Even beyond the money side of things, Discovery Center & Pier CEO Matt McDonough has said that a lot of work needs to be done to get the project ready for groundbreaking. “There’s environmental work, geotechnical work, demolition, engineering, architectural work,” McDonough told The Ticker in October. Watch for much of that legwork to occur in 2024.

Doug Buck

Steve Mitchell

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

WHAT2WATCH One crucial step that needs to happen between now and the 2025 groundbreaking? The relocation of several nonprofit tenants that currently lease space at Discovery Center & Pier, including the Great Lakes Children’s Museum, Maritime Heritage Alliance, Inland Seas Education Association, and Traverse Area Community Sailing.

> NEW MENTAL HEALTH RESOURCES

New Mental Health Resources Discussions about a nationwide mental health crisis have been more than audible in northern Michigan for years. 2024 could change that conversation for the better, with several new mental health supports set to come online in northern Michigan. Last fall, Traverse City Area Public Schools (TCAPS) announced plans to launch the TCAPS Child and Adolescent Health Center, a health clinic based on the campus at West Middle School and operated by Northwest Michigan Health Services Inc. (NMHSI). While that center offers both physical and mental health services to TCAPS students, Project Manager Nancy White sees the mental health component as the game-changer for the district. “I can just tell that these are families that want behavioral health services,” White said. “It’s clear just from looking at the medications the students are on, or from the medical history notes families are including. These are not people who are looking for vaccines; they’re looking for mental health services. There is clearly a huge, huge need.” In addition to the TCAPS center coming online, 2024 should also bring the opening of the Grand Traverse Center for Mental Wellness. That project is an ARPA-funded partnership between Northern Lakes Community Mental Health Authority (CMH), Munson Healthcare, Grand Traverse County, Northern Michigan Regional Entity (NMRE), Community Health Innovation Region, and United Way of Northwest Michigan and is intended to bring more mental health services and infrastructure to the region. Per Munson, construction on the Grand Traverse Center for Mental Wellness will start in January, with “a projected opening for some services” occurring “by the end of 2024.” Those services will include a crisis hotline, mobile crisis services, referrals and scheduling for appointments, intervention services and more. Later phases would add nursing and psychiatric assessments, as well as a crisis residential unit or stabilization unit with beds for youth and adults that require inpatient treatment. The new center will be housed inside Munson’s

20,000 square-foot behavioral services building, located at 420 Brook St. Munson and its partners will renovate and convert the space to prepare for the new application. ARPA Projects In late 2022, Grand Traverse County commissioners took the county’s nearly $18.1 million in American Rescue Plan Act (ARPA) money and broke it into 30 different grants. 2023 saw the gears start moving on some local ARPA projects, many of which have already been reported about in the Traverse City Business News. In our October issue, for example, we paid a visit to the Legacy Aviation Learning Center, a new aircraft maintenance school on Aero Park Drive getting up and running thanks in part to a $500,000 ARPA allocation from the county. Since TCBN’s visit, Legacy Aviation has received its official air agency certificate from the Federal Aviation Administration and opened the application window for its first 12-month cohort. 2024 will be an even bigger year of forward momen-

tum for local ARPA projects, due mostly to federal requirements. Congress has mandated that all ARPA funds be “obligated” to specific projects by December 2024 and spent by December 2026. That ticking clock will motivate ARPA grant recipients to get the wheels rolling on their projects sooner rather than later, which could mean significant progress this year. The two biggest ARPA allocations to watch are the $5 million set aside for mental health services in the county and the $3 million that the county kept back for itself. The mental health money will help pay for a new 24-hour behavioral health crisis center, discussed above. Munson will soon commence renovations on a space at 420 Brook Street to make way for the new center, which should open for some services by the end of 2024. The $3 million kept back for county operations, meanwhile, was not specifically allocated for any one project when county commissioners set it aside at the end of 2021. Deciding how and where to spend that money will be one of the county commission’s top tasks this year. Other recipients of big grants include the Traverse Bay Children’s Advocacy Center, Mt. Holiday, Goodwill Northern Michigan and Michael’s Place.

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> TERRY BEIA, KINGSLEY, AND THE ARCADE

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As one of the top real estate investors and developers for both downtown Traverse City and downtown Kingsley, Terry Beia is the man to ask if you want to know what either of those places might look like in 12-18 months. Take Kingsley, where Beia’s Southtown Property Management controls roughly half the commercial property in the village. Per Beia, Kingsley’s ongoing revitalization continues to drive significant demand and positive momentum for Southtown’s portfolio, including rapid growth of several existing Southtown tenants that has them close to outgrowing their current digs. “To allow for more patron seating and expanded menu options, one of our Kingsley tenants – A. Papano’s Pizza – is targeting a spring 2024 expansion into the neighboring space currently occupied by The Kingsley Dance Studio on Brownson Avenue downtown,” Beia said. The dance studio, in turn, is moving into a newly renovated 1,800 square-foot building located at 100 Clark St. that has been vacant since 2017. Beyond those two change-ups, Beia says Southtown’s Kingsley properties are fully leased at this time, though he does anticipate a vacancy in the coming months, as Pitter Patter Preschool will be relocating to a company-owned facility. Pitter Patter’s move will put a prime 1,600 square-foot space back on the rental market in the heart of downtown on Brownson Avenue, Beia says, adding that Southtown is currently “trying to recruit a coffee shop for the building, which seems to be a missing piece to the Kingsley puzzle.” 2024 could also see the relocation of Kingsley Lumber, which is currently situated at 311 South Brownson Ave., right next to Brownson Memorial Park. That move, Beia says, has been in the works for quite some time, as the current Kingsley Lumber property is a desirable spot in a high-traffic area and could be repurposed to house something with more community engagement potential. “It is my understanding that a viable location has been secured by the Kingsley Lumber ownership and that building plans are in the works,” Beia said. “No specific timetable has been established but some movement forward is expected in 2024.” He says that a mixed-use plan for the 311 Brownson building – including residential and commercial redevelopment of the parcel – is in the “very” early stages of discussion. In downtown Traverse City, meanwhile, the question for Beia is what will happen with the historic Arcade building. Back in 1998, that building became the first piece of downtown TC real estate that Beia’s company, Traverse City Development, ever bought. In 2022, he sold 50% of the asset to Cherry Republic owner Bob Sutherland and Cherry Republic CEO Todd Ciolek, who turned around and leased the space to Cherry Republic for a planned downtown relocation. Despite signing a 10-year lease at The Arcade, Cherry Republic ultimately opted to stay put at its long-time Front Street location in the Whiting building, citing construction costs and other hurdles when it announced the news last February. Initially, Sutherland teased alternate plans for the Arcade space, saying Cherry Republic would be bringing a new retail concept to the ground floor that would have “nothing to do with cherries.” That idea still seemed to be the plan in September, when Sutherland told The Ticker that “it has taken us awhile to get architect and builders and vision in line for the Arcade,” but that he expected to have “something to announce in a month.” The announcement never materialized. When asked about Cherry Republic’s plans, Beia confirmed that the company is still partnered with Traverse City Development in the ownership and management of the Arcade, but is no longer planning any kind of concept for the ground floor. “It’s my understanding that they have scrapped any plan to occupy the space in any form or fashion,” he told the TCBN. Instead, Beia says Traverse City Development and Cherry Republic are working together to explore subletting and redevelopment plans for the 16,000 square-foot building.

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C e l e b rati n g “(The Arcade), with the exception of the Flying Noodle, has been fully demoed and abated,” Beia said, with work scheduled to begin shortly on white box completion of the space. The current plan is to have two retail spaces available for lease on the first floor and five residential condos available for sale on the second floor. “We are in negotiations with a prospective tenant for 3,500 square feet of the ground floor retail space at this time,” Beia added. Beyond the Flying Noodle, the Arcade has been vacant since September 2022, when businesses that had previously called the building home – including Studio Anatomy/ Eugene’s Record Co-op, 2nd Level Goods, Bayfront Scooters, Art & Soul Gallery, Yellow Umbrella Vintage, and Black Candle Tattoo – were required to vacate to make way for Cherry Republic.

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NMC Eyes Benzie County Northwestern Michigan College’s potential expansion into Benzie County could have big implications for both the college and thousands of Benzie residents looking to improve their lives. While students from across the greater Grand Traverse region and beyond attend NMC, only Grand Traverse County residents get in-district rates. That’s because Grand Traverse County is the only county with a millage that supports college operations. The in-district rate is $122 a contact hour, while others pay $261. Two citizen groups in Benzie want NMC to formally add their county to the district, a move that would require approval from NMC trustees along with a successful millage election in Benzie County. Nissley says the proposed millage there would be the same as in Grand Traverse County, which currently sits at 2.057 mills. Nissley and the citizen groups – Advocates for Benzie County and BEST Benzie County (Building Educational Success and Training) – point to a large group of citizens in the county who stand to benefit. It’s estimated that 8,000 of Benzie’s residents – more than a third of the county’s population – lack any form of post-high school training. In addition to several associate’s degrees and a few bachelor’s degrees, NMC offers a host of training and continuing education programs that could benefit Benzie County residents. “There’s going to be ways for us to engage with Benzie that go beyond the traditional 18-year-old student leaving high school and coming to college,” NMC President Nick Nissley said. “What about those 8,000 adults who may want to upskill, and those employers that need them to upskill?” NMC plans a series of listening sessions throughout the county in the fall and into the winter. Depending on what officials hear, NMC trustees could officially approve moving forward with the process in the spring, with a millage election set for late 2024. The Future of TIF The future of a major funding mechanism for downtown infrastructure and improvements is likely to be determined this year. The Traverse City Downtown Development Authority (DDA) gets the majority of its funding from a tax increment financing (TIF). TIF is a state-authorized funding tool that “captures” taxes from local taxing jurisdictions (the city, county, North-

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WHAT2WATCH western Michigan College and other entities that receive portions of property tax revenue) and uses it to fund downtown improvements. The property tax generated within the district at the time of the TIF district’s formation is set as the “baseline.” As development occurs within the TIF District over time, the property values increase, generating additional tax revenue. That additional revenue (above the baseline) is what’s captured by the DDA. TIF-97, the larger of the DDA’s two TIF plans, was approved in 1997 and is set to expire in 2027. The city commission as soon as April could vote to approve a new TIF plan, dubbed Moving Downtown Forward, that modifies certain attributes of TIF-97 based on community and stakeholder input. If and when the commission approves this new plan, it may be subject to a referendum vote by city residents who vigorously oppose any further use of TIF downtown. The future of TIF in the city has big implications for all parties involved. Supporters say TIF is the only way to ensure that the tax burden of improvements to downtown – which is used by hundreds of thousands of non-city residents each year – doesn’t fall on city residents alone. Detractors say downtown is in good shape and that the DDA no longer deserves to siphon taxes away from various taxing jurisdictions, which could put the money to good use elsewhere.

Farming on the Brink Agriculture is a tremendously important part of the Grand Traverse Region’s economy, culture and heritage. People have made a living off the land here for generations, and agricultural operations still employ thousands of people in direct and supporting roles. But local farming is under tremendous stress due to a particularly volatile mix of threats. Between rising costs and shrinking profits, increased overseas competition (particularly for cherry farmers), a lack of interest from the next generation and increased pressure to sell for development, farms are falling like dominoes. The region’s agricultural future is at a tipping point. The issue came into sharp focus last summer when an Acme Township man quit farming after his family had done so there for 150 years. He attracted national attention when he cut down his prominent orchard along US 31, generating discourse about the future of farming in a region long celebrated for it. The West Michigan Fruitbelt, which runs through our region, was identified by the American Farmland Trust as one of the 10 most threatened agricultural resources in the entire nation. Those concerned about this worrisome trend this year and in the near future will continue to keep eyes on the organizations

Election 2024

A TRAVERSE CITY COMMUNITY

Are you ready for round two?

From Left:a lot that can happen between now and There’s

Matt Partman November, but plenty of prognosticators are predicting Sales, Alta Vista a rematch of the 2020 presidential election, with Joe Dan Pater Biden and Donald Trump trading incumbent and chalProject Manager, Burdco lenger roles. Many worry that such a rematch is likely RC Hermann to President, come in the formRealty of another drawn-out, vitriol-filled Traverse & Development, LLCto divide the country even further slugfest that serves along Mikepartisan Brown and cultural lines. Owner, Burdco And while that prospect is certainly unappetizing Cindy Schlaack enough, experts are also keeping an eye on busiSales, Alta Vista ness-driven matters in the leadup to the election. For example, a recent survey by the Nationwide Retirement Institute showed that nearly half of investors believe the results of the 2024 U.S. federal (presidential and congressional) elections will have a bigger impact on their retirement plans and portfolios than market performance alone due to concerns about taxes, economic policy and other matters. While history shows the economy has generally continued to grow over the last 100 years regardless of who is in the white house, experts say the economy and markets can take a temporary hit due to policy, particularly those that impact growth and inflation. Businesses, particularly larger ones, are also readying themselves for another very high-profile election in the modern era and what it might mean for their reputation in the public sphere. This includes how to incentivize and/or facilitate their employees’ ability to vote, along with better tracking of corporate contributions to political causes in a time when organizational values, social responsibility and transparency are arguably more

> FARMING

and people who have the best chance of slowing down the loss of farmland. The Grand Traverse Regional Land Conservancy and Leelanau Conservancy continue to work to secure conservation easements on local farms. They’ve permanently protected thousands of acres of local farmland from development with these legal tools, which permanently restrict the way land can be used in perpetuity. Landowners must voluntarily agree to protect

important than ever before. Locally, it’s too soon to say for certain what will be on the ballot in November, but area voters will experience some changes. First is early in-person voting, which will allow voters to cast a ballot in person at many locations ahead of time. Also new is a permanent ballot list, in which a voter will automatically be sent an absentee ballot instead of having to submit an application every time.

their land in this way, and often get tax benefits for doing so. Another plan of attack comes from people like Nikki Rothwell and her team at Michigan State University’s Northwest Michigan Horticultural Research Center in the heart of Leelanau County. They’re focused on intensive research into new growing techniques and other innovations to help local farmers stay profitable.

> BATTLE FOR SUTTER ROAD BUILDING A CENTER FOR COMMUNITY

Battle for Sutter Road A battle is brewing in a scenic corner of Benzie County, where a proposal to relocate a road has some residents and visitors up in arms. Last March, the prestigious Crystal Downs Country Club (located between Crystal Lake and Lake Michigan) presented the Benzie County Road Commission with a proposal to relocate a section of Sutter Road. The club says that moving the road will address various safety concerns and make the property contiguous (the road in its current location bisects the country club grounds). The old road would then be returned to a “natural state,” though what that means is not defined. The club said it plans to fully fund the project at little or no cost to taxpayers, and points out that all construction, except for road connections and intersections, will take place on club-owned property. “The goal is to improve safety for club employees,

VISION

Build a welcoming, ‘up north lodge’ community center for a new manufacured housing development. interpreted and fulfilled my greater vision “forBurdco this building amidst major challenges, including

design constraints, budget limitations and product shortages. Burdco executed the plan smoothly. The client communications were excellent. The details and workmanship are particularly impressiveatand a positive visitors and members, theset club’s back entrance, at the maintenance facility the drivtone for the entirenear development. ing range and the irrigation station,” a statement on RC Hermann, President the club’s website reads. “The–project will also result Traverse Realty & Development, LLC in a safer commute for the community as well as an improved road which will be less costly for the Benzie County Road Commission to maintain.” Not so fast, say plenty of residents upset with the proposal. “Save Sutter Road” lawn signs are common DESIGN/BUILD in the immediate area, and a website of the same name MEDICAL OFFICESto oppose the plan. Among lists a variety of reasons COMMERCIAL them are the “loss of a beautiful stretch of road that ASSISTED LIVING many of us have enjoyed traveling along for decades,” the potentialINDUSTRIAL for increase runoff into Crystal Lake and the suggestion that the whole relocation is part of a plan to reconfigure and expand the driving range. “The complete lack of credibility in the Downs’ rea• PETOSKEY TRAVERSE CITY • GAYLORD

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entire nation. Those concerned about this worrisome trend this year and in the near future will continue to keep eyes on the organizations

cal farmland from development with these County. They’re focused on intensive legal tools, which permanently restrict the research into new growing techniques way land can be used in perpetuity. Land- CITY and other innovations to help2024 local 17 TRAVERSE BUSINESS NEWS JANUARY owners must voluntarily agree to protect farmers stay profitable.

WHAT2WATCH Election 2024 Are you ready for round two? There’s a lot that can happen between now and November, but plenty of prognosticators are predicting a rematch of the 2020 presidential election, with Joe Biden and Donald Trump trading incumbent and challenger roles. Many worry that such a rematch is likely to come in the form of another drawn-out, vitriol-filled slugfest that serves to divide the country even further along partisan and cultural lines. And while that prospect is certainly unappetizing enough, experts are also keeping an eye on business-driven matters in the leadup to the election. For example, a recent survey by the Nationwide Retirement Institute showed that nearly half of investors believe the results of the 2024 U.S. federal (presidential and congressional) elections will have a bigger impact on their retirement plans and portfolios than market performance alone due to concerns about taxes, economic policy and other matters. While history shows the economy has generally continued to grow over the last 100 years regardless of who is in the white house, experts say the economy and markets can take a temporary hit due to policy, particularly those that impact growth and inflation. Businesses, particularly larger ones, are also readying themselves for another very high-profile election in the modern era and what it might mean for their reputation in the public sphere. This includes how to incentivize and/or facilitate their employees’ ability to vote, along with better tracking of corporate contributions to political causes in a time when organizational values, social responsibility and transparency are arguably more

> BATTLE FOR SUTTER ROAD

visitors and members, particularly at the club’s back entrance, at the maintenance facility near the driving range and the irrigation station,” a statement on the club’s website reads. “The project will also result in a safer commute for the community as well as an improved road which will be less costly for the Benzie County Road Commission to maintain.” Not so fast, say plenty of residents upset with the proposal. “Save Sutter Road” lawn signs are common in the immediate area, and a website of the same name lists a variety of reasons to oppose the plan. Among them are the “loss of a beautiful stretch of road that many of us have enjoyed traveling along for decades,” the potential for increase runoff into Crystal Lake and the suggestion that the whole relocation is part of a plan to reconfigure and expand the driving range. “The complete lack of credibility in the Downs’ rea-

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WHAT2WATCH sons for supporting this proposal suggests an alternate agenda,” the website states in part. Benzie County Road Commission Manager Troy Hinds tells the TCBN that his agency is in a holding pattern. “We’re pretty neutral on everything until we see some formalized plans in front of us…and we can get them verified with our engineers,” Hinds said. Regional Office Space Usage It’s always been said that downtown Traverse City is the hottest commercial (particularly office) real estate market north of Saginaw. And while that’s still likely true, COVID dropped an atomic bomb on the way companies interact with their employees. While many white-collar workers have returned to the office in the post-COVID world, it’s likely that remote work is here to stay – but in what capacity? Local business and real estate leaders are keeping an eye on what 2024 will bring. Traverse Connect President and CEO Warren Call tells the TCBN he expects to see continued debate between the merits of in-person and remote work. “Many employees (and some employers) will continue to want fully remote and hybrid work options, while many employers would like to have their teams fully back in the office,” he said. “I think the most likely outcome is a continued ‘moderniza-

tion’ of work formats that is hybrid and flexible for the roles that allow it.” That will mean that offices of the near future are likely to look and feel – and be used – different than what we’ve all been used to, Call said. Companies moving or opening here are already building flexibility into their spaces, he added. “I think office space will be set up in a more flexible format with lounge-type areas and shared spaces, rather than offices and cubes,” Call said. “Prime office space will be adapted to reflect this more flexible format, while sub-quality office space will likely be redeveloped for other uses, including housing.” Kevin Endres is the owner of Three West, a Traverse City-based commercial real estate agency. He said he’s seen most companies return to a largely full-time office presence, with some even purchasing buildings to own their own space instead of renting. The data, he said, shows that there is still plenty of interest in office space, and that’s likely to continue into 2024. “In a 2022 to 2023 Q3 comparison, the price per square foot of office space went up considerably and the days on the market for office space dropped,” he said. Another thing to keep an eye on is the lease market. Hagerty is downtown’s biggest tenant from a square footage standpoint (it sold its HQ buildings several years ago and now leases them, and

until recently also rented several other prime spaces). In a statement provided to the TCBN, company officials said they are now a remote-first workplace, which has enabled their growth through (among other things) broader access to talent. Altus Brands Among the many local companies to keep an eye on in 2024 and beyond is Grawn-based Altus Brands. The company focuses products for the hunting and shooting marketplace, including various forms of passive and electronic ear protection that can be worn over or inside the ears. Recently announced is a partnership between Altus and Denmark-based Earfab ApS, a joint venture called Earfab Americas that is expected to create nearly 100 new jobs here in Grand Traverse County. Earfab allows customers to order custom-fitted earplugs by using a smartphone app that creates a three-dimensional image of each ear. “We’re really going to be the first mass-customized product…it’s actually pretty phenomenal,” Altus Brands CEO Gary Lemanski tells the TCBN. “We’re focused on any product that goes in the ear, from earbuds to hearing protection to hearing aides…instead of having a universal fit product, you’ll have something that is customized to fit your inner ear.” The project is expected to generate a

> ALTUS BRANDS total capital investment of $2.74 million and create 93 jobs. It’s supported with a $575,000 performance-based grant from the Michigan Business Development Program. Northwest Michigan Works! has also pledged to offer up to $185,612 for workforce development and training support. “This dynamic project will help expand the capabilities of this company and bolster the region with a robust workforce in the key sector of manufacturing,” the Michigan Economic Development Corporation said in a statement. Altus already has the space, but will be investing heavily into getting it ready for Earfab production, which Lemanski said is expected to begin by spring.

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TRAVERSE CITY BUSINESS LEGENDS HALL OF FAME

TRAVERSE CITY BUSINESS LEGENDS HALL OF FAME Meet the new inductees By Art Bukowski Now more than a decade in, the Traverse City Business Legends Hall of Fame includes a robust and diverse collection of business leaders, civic champions, philanthropists and others who have left their mark on the Grand Traverse Region. Each of these individuals – some living, some deceased – made lifelong contributions to the economic growth and/or long-term vitality of northwest Michigan. After a 10-member inaugural class in 2013, two members have been inducted each year. This year, we’re delighted to add downtown Traverse City icon Maurie Allen and longtime civic leader Carol Hale to this distinguished group.

Maurie Allen – “The Merchant’s Mentor”

The vast majority of downtown Traverse City storefronts have probably changed hands four or five times in the decades since Maurie Allen opened the Captain’s Quarters on Front Street in 1966. That staying power is a testament to the store’s selection and service, but it’s also a reflection of a man many have come to truly admire for his wisdom and leadership. “Maurie is a true leader who helps his neighbors and helped reinvigorate downtown,” said Jean Derenzy, CEO of the Traverse City Downtown Development Authority. “He’s a founding father who can provide a guidebook of best practices for retailers, and he knows we have to work together and never take for granted what we have.” Allen was born near Fort Wayne, Indiana and worked for Montgomery Ward there before he was transferred north to Traverse City in 1964 to help run its store here, which at that time occupied the Hannah Lay building. “I was here for two years, and I must have done something right, because they wanted to promote me back to Fort Wayne where they were building a brand new store,” Allen said. “But we had been here two years, and like everyone else, we had fallen in love with the place.” So Allen opened a store of his own, and at 82 years old, he still loves being there. Captain’s Quarters is the last remaining dedicated men’s shop in a town that once had several, and Allen never tires of the joy he gets from interacting with people. After all, that’s really what retail is all about. “It’s the people you work with and the people that come through the doors,” he said. “It’s been fun.” Around the time Allen opened Captain’s Quarters, he helped found the Downtown Traverse City Association, a merchant group that works to advance, protect and perpetuate

business interests throughout downtown. “Right now our downtown is very vibrant, but it hasn’t always been that way,” he said. “That was sort of the genesis of us getting together and getting organized. We wanted to be able to sit down on a regular basis and discuss things, figure out how to make things better.” He’s also a longtime member of the Traverse City Rotary Noon Club and has had leadership positions with the Grand Traverse Area Healthcare Foundation (now Munson Healthcare Foundations), Central United Methodist Church and the Downtown Development Authority. He’s also a co-founder of the Traverse City Chapter of the Society for the Preservation and Encouragement of Barbershop Quartet Singing in America. Allen is proud of the role his shop and its employees have played in the community at large. It’s the go-to spot for all Boy Scout gear, for instance, and has always been a hot spot for prom and homecoming formal wear. “It’s a low-margin business, but it’s just so much fun,” Allen said of the Boy Scout apparel. “It’s just a little department in our store, but it’s nice for the community. You see these kids come in and get their first uniform, and they’re all excited and ready to go – it’s wonderful.” Several employees have also gone on to lengthy terms in public service – his son Jason Allen and employee Wayne Schmidt both went on to serve in the Michigan House of Representatives and Michigan Senate, and his very first employee, Bill Kurtz, served in a variety of elected positions, including on the school board and for many years as Acme Township supervisor. “I am proud of the many employees that have come through here and gone on to be really successful and involved in the community,” Allen said.

22 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

TRAVERSE CITY BUSINESS LEGENDS HALL OF FAME Friends and family recall Carol Hale as a force of nature who lent her time, energy and passion to a variety of projects that made Traverse City better for everyone who lives or visits here. A teacher by trade, Hale taught humanities at Traverse City Area Public Schools for almost three decades before retiring in 1998. And while she certainly made a positive impression upon thousands of students over the years, her impact extended far beyond the classroom. She served as a Traverse City commissioner for 18 years, including a term as the city’s second female mayor in 1983. She also was an active member of the Downtown Development Authority (DDA), Traverse City Rotary Noon Club, League of Women Voters, Central Neighborhood Association, Maritime Heritage Alliance and much more. Her many accolades include being named Citizen of the Year by what was then the Traverse City Chamber of Commerce and lifetime achievement awards from the Michigan Historic Preservation Network and the Grand Traverse Heritage Center. “She was a warrior in the best terms; a super star for our community,” said her friend Jean Derenzy, who worked alongside Hale in a variety of roles and now serves as DDA CEO. “She was the best in causing positive ripples, and those positive ripples continue to this day. For her, it was not about being the best in the community, but the best for the community.” Perhaps most notably, Hale was chairperson of the Grand Traverse Commons Redevelopment Corporation, which quite literally saved the former Traverse City State Hospital from destruction and paved the way for the vibrant, multifaceted community that now

occupies the space. She was deeply involved from the start, standing in the way of bulldozers primed to knock the buildings down. Hale’s friend Dan Tholen, who also was involved with redevelopment efforts at the commons, said Hale’s ability to bring people together toward a common goal was among the characteristics that made her special – and effective. “All sides liked her. There were people that really didn’t work well with each other, but Carol worked well with everybody,” he said. “I had thought about writing some kind of history of what went on at the Commons from my perspective, and I was going to call it ‘Carol’s Front Porch,’ because that’s where it all really happened.” Russ Soyring served as city planner from 1986 until his retirement a few years back. He said regular calls from Hale were instrumental as he and other city leaders went about their business. Her calls started his first month on the job and continued on a regular basis until his retirement, and they were always useful in one way or another. “She was always looking out for the betterment of Traverse City,” Soyring said. “She was great about telling me all the things I should think about before making a decision, and having people like that in the community makes a big difference.” Hale, who passed away in 2021 at the age of 78, was invaluable as a genuine, agenda-free conduit to the community, Soyring said. “The pulse of the community is hard to read sometimes,” he said. “But when you have someone like her who is just so engaged, so passionate, so connected, you sense they’re speaking for (everyone), not just their own personal interests.”

Carol Hale – “The Connector”

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TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

HALL OF FAME PAST INDUCTEES

A. Tracy Lay “Founder of the Village”

J. Perry Hannah “The Father of Traverse City”

R. Howard Whiting

Gerald Oleson Sr.

Henry Campbell

“The Poor Man’s Banker”

“The Philanthropist”

“The Utilities Man”

2013 INDUCTEE He was Perry Hannah’s business partner, but Albert Tracy Lay did something perhaps even more significant: He laid out the 1852 plat map for the town of Traverse City, thus becoming the – Robert Wilson, author, “founder” of the village. Grand Traverse Legends

2013 INDUCTEE “His leadership and vision during the first 50 years of Traverse City’s existence have left an indelible imprint on the modern community and its people.”

Frank Hamilton “The Ambassador”

2013 INDUCTEE

2013 INDUCTEE He ended up a wealthy businessman who left his namesake on a beloved hotel in downtown Traverse City, but Howard Whiting will always be remembered for his generosity and enabling others to start their own farms and businesses.

Photo courtesy of NMC Archives

2013 INDUCTEE

Photo courtesy of History Center of Traverse City

2013 INDUCTEE

Photo courtesy of History Center of Traverse City

BY AMY LANE

2013 INDUCTEE

2013 INDUCTEE A humble grocer, land owner, buffalo farmer and millionaire, Gerald Oleson established the Northwestern Michigan College barbecue fundraiser and continues to give back to the community posthumously through a foundation he started with his wife, Frances.

Henry Campbell had the gumption to believe he could open the “largest and most elaborate hotel north of Grand Rapids.” However, his most significant contribution was bringing a waterworks system and electricity to the downtown area.

Tom Deering

Les Biederman

Peter Dendrinos

Ray Minervini

(Turned Entrepreneur)”

“Broadcasting Pioneer”

“The Born Leader”

“The Visionary”

“The Butcher

2013 INDUCTEE

Local meat cutter Tom Deering took a financial risk in the 1940s, opening a small market in Traverse City. His 11th Street store would become a seven-store enterprise, employing hundreds of area residents.

“Biederman was like nature, someone once observed, in that he sowed ideas like nature sows seeds. Many of these never took root, but many did.”

John Parsons

Bryan Crough

“The Innovator”

James Munson

Arthur Schmuckal

Frank L. Stulen

“The Believer”

“The Healer”

“Mr. Oil”

“The Idea Man”

Frank Hamilton could be described as a reluctant Traverse City visitor who ended up becoming one of its most successful merchants and greatest ambassadors.

2014 INDUCTEE

“John Parsons gave numeric control to the world. Not only did he change the world of manufacturing, he helped weave the fabric of Traverse City’s strong manufacturing community today.” – W. Dodd Russell, CEO, Skilled Manufacturing Inc.

2014 INDUCTEE

“Bryan Crough led the efforts to not only save downtown Traverse City, but to transform it into the dynamic heart of our region through his tireless efforts, relentless leadership, creativity and balanced perspective.” – Marsha Smith, former executive director, Rotary Charities

A former all-state football player, Dendrinos launched a pie business that became the city’s largest employer and the top provider of pies to the U.S. food service industry.

– Former Traverse City Record-Eagle Editor Ken Parker

2015 INDUCTEE

Munson’s theories of psychiatry were revolutionary for the times; he did away with straitjackets, used drug therapy and had patients working the farm and growing the food the State Hospital needed. He also integrated social services with patient care. He believed in treating the patients and not just “warehousing” them.

“Ray Minervini has changed the landscape of Traverse City and the notion of redeveloping and being stewards of historic properties forever.” – Doug Luciani,former CEO, Traverse Connect

2015 INDUCTEE

Schmuckal co-founded Slane and Schmuckal Oil Co., a Shell Oil Co. distributor, with George Slane in 1955. Northwestern Michigan College’s University Center is named after Art and Mary Schmuckal, thanks to their work with the college and their philanthropy. In 1999, they formed the Art and Mary Schmuckal Family Foundation.

2016 INDUCTEE

Frank L. Stulen turned inventor/ businessman John T. Parsons’ detailed instructions into calculations that eventually became numerical control – the automation of machine tools. Numerical control is often called “the second industrial revolution.” Their innovations are the precursor for today’s computer-aided machining, which can make everything from truck panels to custom embroidery.

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TRAVERSE CITY BUSINESS NEWS

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TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

HALL OF FAME PAST INDUCTEES

James W. Milliken

Elnora Milliken

“The Benevolent Shopkeeper”

“TC’s Grande Dame of Arts”

2016 INDUCTEE

2017 INDUCTEE

In 1868, James W. Milliken and his childhood pal Frank Hamilton arrived in Traverse City. Six years later, they opened the Hamilton, Milliken & Co. store, which grew so popular they built a bigger store at 204-6 E. Front St. Milliken’s, as it became known when their partnership amicably dissolved, had a reputation for caring for employees. Milliken himself was known for his “consideration and kindliness.”

Milliken is credited with bringing professional music and theater to the Grand Traverse region as founder of the Traverse Symphony Orchestra, originally known as the Northern Michigan Symphony Orchestra, in 1951 and Old Town Playhouse, originally known as the Traverse City Civic Players, in 1960.

Photos courtesy of Traverse Area Historical Society, NMC Archives, Interlochen Center of the Arts and Tom’s Food Markets

Julius Sleder

Judith Lindenau

“The Great Storyteller”

“Mentor Extraordinaire”

2017 INDUCTEE

2018 INDUCTEE

Judith Lindenau was a Renaissance woman who left a legacy that continues to impact real estate agents around the world. She was best known as the executive vice president of the Traverse Area Association of – Hal Van Sumeren, former Realtors (TAAR) and was pivotal president, Traverse City in the creation of BORIS, the Chamber of Commerce Board of Realtors Information Service, which launched in 1980 as the state’s first computerized MLS and the precursor to today’s modern online system.

“Julius was an institution. He operated an auto dealership downtown [Grand Traverse Auto] longer than anyone ever has … and was a huge advocate for downtown businesses.”

Bruce Rogers “Mr. Traverse City”

2018 INDUCTEE

Longtime co-owner of Bartling’s with his wife, Joyce, Rogers was a leader in establishing Traverse City’s DDA and served for many years on the board as well as numerous endeavors that strengthened and propelled downtown Traverse City into a thriving retail center. A former Michigan Retailers Association board chair and member, he was often noted by industry peers for his visionary leadership, impact and mentorship.

26 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

HALL OF FAME PAST INDUCTEES

Bill Marsh Sr.

Dr. Edwin “Ted” Thirlby

“The Classic Entrepreneur”

“Medical Pioneer”

Arnell Engstrom

“TC’s ‘Dean’ of the Michigan Legislature”

Russell ‘Butch’ Broad “People First”

Ken Schmidt

“Legendary Traverse City Realtor”

2019 INDUCTEE

2020 INDUCTEE

2021 INDUCTEE

Dr. Edwin Thirlby is remembered as a pioneer in bringing modern medicine and surgical practices to Tra- verse City, as well as a patron of post-graduate medical education in Michigan.

Bill Marsh Sr. built an automotive dynasty that continues to thrive today under leadership of three of his sons. He is remembered as a visionary and as a classic entrepreneur with a strong moral compass and positive energy who valued family and people.

Arnell Engstrom was one of the original planners, incorporators and a long-standing trustee for Northwestern Michigan College, the state’s first community college, and was instrumental in sponsoring legislation that supported formation of other Michigan community colleges.

In 1977, Butch Broad purchased Elmer’s, the family-owned company Elmer Schaub had founded in 1956. Today, Team Elmer’s is an industry leader throughout northern Michigan, operating six divisions (asphalt, excavation, concrete, aggregate, trucking and crane and rigging) from 15 locations and employing hundreds of skilled professionals.

Representing the third generation of Schmidt realtors, the Traverse City native served as CEO of the Coldwell Banker Schmidt Family of Companies and helped steer the company’s growth from a single office to one of the top three largest and most successful Coldwell Banker franchises in the country, with offices in Michigan, northeast Ohio, Florida and the U.S. Virgin Islands.

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TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

HALL OF FAME PAST INDUCTEES

Helen Childs Osterlin “Tiny but Mighty”

Captain Harris “Harry” Boardman

Bob D. Hilty

“The Humble Leader”

Mary Jean Brick

Ralph E. “Boots” Wolff, Jr.

“The Advocate”

“Downtown’s Caretaker”

“The Pioneer”

2021 INDUCTEE

2022 INDUCTEE

2023 INDUCTEE

Helen Osterlin dreamed of being an opera singer. Instead, she gave voice to countless Traverse City area artists, students, caregivers and projects that continue to impact the region. Osterlin is especially credited as a driving force behind the success of Interlochen Public Radio, notably saving radio station WIAA from closing in 1970 and creating its Community Advisory Committee.

Bob Hilty was a quiet leader whose visionary touch benefited almost every aspect of modern Traverse City. He influenced the shaping of NMC, decades of growth leading to the Munson Healthcare system, creation of NMC’s University Center and Culinary Institute, founding of the Presbyterian Church, northern Michigan operations for Consumers Power and, most notably, development of Rotary Charities as a philanthropic powerhouse.

Captain Harris “Harry” Boardman (1792-1877) is credited as being one of the first white settlers of Traverse City when he purchased property in 1847 and ventured to lands that had long been settled by the native Ottawa, Ojibwa and Potawatomi tribes. Historians refer to Boardman as a thrifty farmer living near Napierville, Ill. who purchased a tract of land from the U.S. government at the mouth of a river then known as the Ottawa, which flowed into Grand Traverse Bay. That property would become Traverse City.

While being an owner of a vital downtown retail establishment, Petertyl Drug, Ralph “Boots” Wolff was also a founding member of the Traverse City Downtown Development Authority (DDA) in 1979 and served on its board for 31 years, including time as chairman. He is recognized by those who have followed him for helping to create many of the things people enjoy about Front Street and the surrounding area to this day.

Inspired by personal experiences with both a sister and a son with special needs, Mary Jean Brick laid the foundation that has improved the lives of adults living with physical and developmental challenges in the area for nearly 50 years. Under Brick’s guidance, the area’s first-of-its-kind Community Living Center opened in 1978 in Traverse City. It was the first very step for the not-for-profit organization known today as BrickWays – a corporation and foundation that serves adults with developmental disabilities. Photos courtesy of Traverse Area Historical Society, NMC Archives, Interlochen Center of the Arts and Tom’s Food Markets

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28 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

TECHNOLOGY

The FirstIgnite team

HIGH TECH Local tech leaders talk artificial intelligence, remote work and more By Art Bukowski

Technology is often at the center of the news cycle, with plenty of attention paid to devices, services or innovations that are destined to change our lives for the better. But what if it’s also the thing that’s going to end humanity as we know it? Such is the current debate with artificial intelligence, arguably the hottest tech talking point in recent months. And while the jury’s still out on the existential threat (or lack thereof) from this rapidly commercialized service, two things are for sure: Technology in all its forms will continue to impact our daily lives, and the changes are going to happen at a far faster pace than ever before. The TCBN spoke with local leaders and entrepreneurs in the tech space to find out about what it’s like doing business in Traverse City, what trends they’re keeping an eye on and what’s likely to impact businesses and individuals in the coming years.

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TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

TECHNOLOGY A View of the Bay? It hasn’t been that long since efforts to supplement Traverse City’s deep roots in agriculture, tourism and regional services with tech companies began in earnest. But it’s blossomed into a relatively tight-knit community of entrepreneurs and companies that are doing big things in the region. Various groups and organizations including 20Fathoms, TCNewTech, Boomerang Catapult, Traverse Connect and more have all played a role in this renaissance. Remote work has also helped fuel the growth of tech in the region. Since much work can be done online and people can be nearly anywhere, the Grand Traverse area’s quality of life has been a huge draw. Chase Bonhag is the co-founder and CEO of FirstIgnite, a marketplace that facilitates the transfer of university research to companies or organizations that can commercialize or utilize it in some way. They reached a million dollars in venture capital and will close the year just shy of the same mark in revenue. They’re also the first Traverse City company to participate in the prestigious Y Combinator tech startup accelerator. “If you work for our company, your laptop is the equivalent of downtown Manhattan or inside the Chicago loop during the day,” he said. “Things are going down, we’ve got customers we’re

reaching to out around the world, we’ve got things breaking – it’s crazy.” For Bohnag and others in the local tech community, the reason he chose to live in Traverse City and run his company from here is because of what happens when that fast-paced workday ends. “When I shut that laptop and I’m done for the day, I’m in such a peaceful environment,” he said. “Because Traverse City isn’t Manhattan, right? It’s calm, it’s cool, and I get to enjoy all the things I love, like nature and the outdoors.” But it’s more than pine trees and sandy beaches. Bonhag says he loves being on the ground floor of a growing tech ecosystem where the pioneers are getting a lot of attention and assistance. “If I’m in downtown Chicago doing this, nobody cares who I am. I’m not getting the quotes for the paper … I’m a small fish,” he said. “In Chicago you’ve got 45 tech companies by the time you walk down a single city block.” Here, Bonhag says, the attention is both welcome and tremendously useful. “To me, what’s so exciting is you’ve got groups like Traverse Connect, 20Fathoms and others, and all of these groups really want Traverse City to be a serious tech community,” he said. “They want tech as a part of our economy, and they’ll do what they can to help make that successful.” John Williams is CEO of Atlas Space Operations, the largest and one of the

CEO John Williams at Altas Space Operations headquarters in the Bayview Professional Centre.

“There’s a robust investment base here that really cares about the area and that’s really interested in bringing technology here; the right new technology that’s a good fit for the Traverse City environment. Having an interested, committed investor base is one of the keys to our success.” –John Williams, CEO, Atlas Space Operations earliest successful local tech companies. Atlas, which has about 40 employees and is highly decorated within the industry, facilitates communication between satellites and their owners on the ground. Like Bonhag, Williams has been impressed

with Traverse City’s steadfast dedication to seeing tech flourish. “There’s a robust investment base here that really cares about the area and that’s really interested in bringing technology here; the right new technology that’s a

30 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

TECHNOLOGY good fit for the Traverse City environment,” Williams said. “Having an interested, committed investor base is one of the keys to our success.” But there are downsides. “The housing market is very limited up here. For us to hire someone and move them here to be a part of the organization because they’re more effective in the office, it can (be a challenge),” Williams said. “If you want more tech companies here, you’re going to have to be able to house families.” In the post-Covid world, the need is lighter. Ben Fellows is founder and CEO of Loop Software Testing & Services, which runs quality assurance on a variety of software for clients. He said he didn’t believe in remote work when he started his Traverse City-based company, but now, like Bonhag, most of his workers are located elsewhere. Fellows knows of locals working remotely in high-up positions for major tech companies like Google, and he’s watched as the flow has increasingly gone both ways. “One hand, you have more and more people living in Traverse City in tech, working these remote jobs,” Fellows said. “On the other hand, being an employer in Traverse City, I’m now recruiting outside of Traverse City more than anything because I can recruit from anywhere.” Bracing for impact, AI or otherwise Tech will continue to change business

as we know it, that much is certain. But local tech players all say the progress curve is going to climb at a sharper angle than ever before. The pace of new developments is simply faster, and it’s likely to get faster still. “People don’t necessarily adapt to change well, and the thing that might be the biggest challenge for us going forward is we’re going to continue to see rapid change,” Atlas’ Williams said. Bonhag said the pace at which developments occur is tightening substantially, meaning individuals and businesses will need to adjust much quicker than ever before. “Tech comes, and it comes fast,” he said. “The first thing a regular business owner needs to understand is the world is moving a lot faster, and our cycles (of change) are going to be three to six years instead of five to 10.” While many tech developments stand to make waves, the continued use of artificial intelligence could radically disrupt many business models and is arguably poised to make the biggest impact on companies and organizations of all stripes in the years to come, local tech leaders said. “Whether you’re Eastfield Laundromat, Oryana or Benjamin Twiggs, if you haven’t asked yourself as a business leader how you can incorporate AI into your business or what impacts AI is going to have on your business, I think that you’re

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“When it comes to AI and ChatGPT, I’ve learned more in the last six months just asking the question why over and over again than I’ve learned in the last five years. We’re absolutely going to still rely on really smart, great workers, but those workers are going to be able to produce more with these sorts of engines behind them.” –Ben Fellows, founder and CEO, Loop Software Testing & Services behind already,” Bonhag said. “There’s not a single company out there that couldn’t have their marketing automatically generated from AI, for instance…and you don’t have to be a rocket scientist to figure out ways it can help you.” Fellows is in a weird spot with AI. He knows it could put him and thousands of other data- or process-driven companies out of business within a decade, but he also recognizes its tremendous actual and potential value for businesses of all forms. “When it comes to AI and ChatGPT, I’ve learned more in the last six months just asking the question why over and over

Fellows

again than I’ve learned in the last five years,” he said. “We’re absolutely going to still rely on really smart, great workers, but those workers are going to be able to produce more with these sorts of engines behind them.” It’s not just that AI is getting smarter, Fellows said. It’s more affordable, and therefore more accessible. And while it’s far from perfect – especially right now in its early days of commercialization – it’s still a tremendous resource that stands to permanently change the game. “Look, you now have this tutor over your shoulder that previously would have

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TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

TECHNOLOGY

LET’S GROW

From left to right, Broc Crandall, Walker Schmidt and Zach Hite of Stocked

On your entrepreneurial journey, the road is paved with dreams, grit and determination. We help simplify the complex so you can focus on the results. Our business is to help your business succeed. Let’s grow together. your shoulder that previously would have cost $300 or $400 an hour that now costs $20 a month,” he said. “In my industry, people who are willing to lean in and use it and recognize that they can be smarter and more productive than they’ve ever been will become eminently more valuable.” The potential downsides, though, weigh heavily into the equation. Plenty of prominent people in the industry suggest AI poses an existential threat because it could either become self-aware or otherwise develop beyond the point of humans’ ability to control it. “I’m no expert, but I’m concerned that we could lose control. We need to strive for the right balance of this technology being helpful, but still safe,” Atlas’ Williams said. “How do we stay on the path where it’s useful, but not dangerous?” As AI and other technologies proliferate, Williams says a less scary but still very significant problem will be figuring out how to use these things in a way that makes sense for business. After all, he said, just because a person can be replaced doesn’t mean customers will always want it that way. “Part of the challenge for businesses will be finding the right mix of automation and human beings,” he said. “At McDonald’s, do you want to talk to a person, or do you want a machine to kick out your order? A machine could probably be programmed to make your special mocha at the coffee shop downstairs, but would it taste the same to the customer because of their perception of the experience?” Bonhag isn’t as concerned about the threats of AI, firmly believing there’s a lot more good to come before the bad hits, if it ever does. He said the advancement of AI is making it more accessible to everyone, and that in turn will lead to waves of positive impact.

“I think that the technical barriers to starting a tech company are lowering, and it’s not going to be that difficult for two kids at NMC to start an AI company in the future that solves a problem and can get customers, and that they alone can build the product,” he said. “You used to have to go and find the brightest folks at the University of Illinois or the University of Michigan working in computer science, and you’d have to pay them a lot of money and hope that they could build you what you needed.” Zach Hite is co-founder and COO of Stocked, a local company that allows people who rent Airbnbs, Vrbos, condos and more to order food and get it delivered ahead of their arrival. He’s most interested in watching how businesses leverage the internet’s vast resources through this rapidly developing technology. “These large language models like ChatGPT are coming along, and they’re able to correctly guess what you’re alluding to or what you’re implying. Things are getting done and figured out much faster than ever before.” Hite says. “You’re going to see more startups and more small businesses succeed because they don’t have to pay for those outside consulting dollars.” Hite’s also curious as to how companies like his will play a role in essentially automating daily life. You can look up a recipe online, for instance, and you can order ingredients online. What happens when the entire process is one or two clicks? How streamlined will this stuff get? “What’s going to be really interesting is to see how last-mile delivery type companies like ours are incorporated into everyday life,” Hite said. “Things are getting more and more organized now. What’s that going to do for everyone’s spending habits and planning? I’m really curious to see how consumer behaviors change in that regard.”

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TRAVERSE CITY BUSINESS NEWS

TECHNOLOGY

HIGH-SPEED INTERNET COMING

A map showing the areas that will be serviced thanks to the five northern Michigan projects funded in the first batch of ROBIN grants.

State grants $25.6 million in broadband internet funding for five-county region By Craig Manning

Northern Michigan is getting a big boost for broadband internet, thanks to the state’s Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) grant program. Long touted as a potential game-changer for high-speed internet access in rural parts of the state, the ROBIN program officially announced its first round of grant recipients in late October, totaling more than $203 million statewide. Nearly $54.5 million is coming to northern Michigan, with the promise of extending broadband service to thousands of homes, businesses and other locations throughout the region’s less-served counties. At this point, northern Michigan is no stranger to broadband buildouts. In recent years, providers like Traverse City Light & Power and Michigan Broadband Services have worked to bring fiber internet to Traverse City and its outlying neighborhoods. For years, a local company called Eclipse Communications has been working to construct a fiber network in Benzie County. In 2023, Leelanau County brought its first fiber customer online thanks to an ARPA-funded partnership with the Alabama-based telecommunications company Point Broadband. 2024 will see high-speed internet spread in the region because of the ROBIN program. Seeded by money from the federal Coronavirus Capital Projects Fund and administered by the Michigan High-Speed Internet Office (MIHI), the ROBIN program seeks to bring high-speed internet access to unserved locations throughout the state. The application process for the first round of grants officially went live last Helen Osterlin was recognized as a Northwestern Michigan College Fellow in 1970. Photo provided by NMC.

January, with MIHI announcing that initial batch of grantees in late October. Per the state’s Department of Labor and Economic Opportunity (LEO), which houses the MIHI office, 40 different applicants sought ROBIN funds in the first round, with applications spanning 154 total projects and totaling $1.3 billion in grant requests. MIHI’s “Batch 1” recipients include nine of those applicants and 18 different projects, representing $203 million in grant funds and $202 million in private matching funds, for a total project investment of $405 million. Once installed, LEO estimates the project will extend high-speed internet coverage to 71,000 homes, businesses, and institutions. Three of those grants, totaling more

Energy, meanwhile, is getting $17.7 million for a Kalkaska district broadband network, which will serve 3,660 locations – most of them in Kalkaska County, but some reaching into Grand Traverse, Antrim and Otsego counties. Finally, Point Broadband – the partner already working with Leelanau County on its fiber project – will receive nearly $5 million for its buildout. Application materials estimate that this particular grant will allow Point Broad-

In Benzie County, Cherry Capital Connection, LLC will receive nearly $2.86 million to build out a network serving 1,428 locations. than $25.6 million in funding, will impact the five-county Grand Traverse region. In Benzie County, Cherry Capital Connection LLC will receive nearly $2.86 million to build out a network serving 1,428 locations. The Boyne City-based Great Lakes

band to serve 2,150 new locations with broadband internet – not just in Leelanau County but also in parts of Grand Traverse, Benzie, Manistee and Wexford counties. Point Broadband wrote in its grant application that the extra funds were necessary to avoid project delays, as

supply chain issues, overall inflation, and the rise in labor cost have driven up the budget. Two other ROBIN grants will bring broadband infrastructure to northern Michigan outside of the five-county region. Great Lakes Energy, the company building out the Kalkaska District project, is also getting an $18 million grant for a broadband project in the Scottville District and another $10.8 million high-speed internet grant for a Waters District project. The Scottville District includes 3,384 locations in Lake, Manistee, Mason, and Oceana counties, while the Waters District envelops 2,465 locations in Crawford, Montmorency and Otsego counties. All told, these five grants will bring the option of broadband internet to more than 13,000 unserved or underserved locations in northern Michigan, 7,238 of them in the five-county Grand Traverse region. An additional 1,477 northern Michigan locations could be reached, depending on how things go with a second batch of funding: Among the “Batch 2” recommendations from MIHI are a $1 million grant for a project in Missaukee that would bring service to 446

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

RECRUITING TALENT TECHNOLOGY locations, as well as a pair of Charter/ Spectrum projects that would extend broadband coverage to 1,031 locations in Antrim and 274 in Leelanau counties, respectively. The second batch of ROBIN funding is expected to be announced soon. State Rep. Betsy Coffia (D-Traverse City) praised the ROBIN grants and their heavy focus on rural northern Michigan areas, noting that “one of the biggest hurdles we need to overcome to jump-start economic development in places like northern Michigan is access to high-speed internet. I am thrilled to see more homes and businesses will be connected to this vital service to help kids complete their schoolwork and entrepreneurs reach their customers.” All projects granted ROBIN funds must, at minimum, be able to deliver download and upload speeds of 100 megabits per second (Mbps). Per Forbes magazine, 100 Mbps internet speeds are typically considered “fairly fast” and capable of downloading a one-gigabyte file in approximately 80 seconds. Many areas in northern Michigan don’t have access to internet speeds even close to 100 Mbps. In its application for ROBIN funds, Point Broadband wrote that “90% of the locations

within the proposed service area” of the company’s Leelanau County network “do not currently have access to even basic 25/3 service.” For reference, 25/3 service was the broadband speed benchmark set by the Federal Communications Commission (FCC) back in February 2015. It denotes download speeds of 25 Mbps and upload speeds of 3 Mbps. In 2021, the U.S. Government Accountability Office (GAO) reported that 25/3 speeds were “likely too slow to meet many small business speed needs.” The FCC has since discussed updating the standard to 100/20 (100 Mbps download, 20 Mbps upload), with FCC Chairwoman Jessica Rosenworcel sharing her belief this past fall that the 25/3 standard has become obsolete, especially in the wake of the pandemic and how it popularized remote work and telecommuting. “This [25/3] standard is not only outdated, it masks the extent to which low-income neighborhoods and rural communities are being left offline and left behind,” Rosenworcel said. Northern Michigan’s ROBIN-funded broadband projects won’t just elevate many outlying rural areas out of the 25/3 doldrums. On the contrary, some local users could see speeds so fast that

“One of the biggest hurdles we need to overcome to jump-start economic development in places like northern Michigan is access to high-speed internet. I am thrilled to see more homes and businesses will be connected to this vital service to help kids complete their schoolwork and entrepreneurs reach their customers.” – State Rep. Betsy Coffia (D-Traverse City) they’d redefine the meaning of highspeed internet. “The proposed network would improve broadband speeds from slow rural DSL to the capacity for continuous end-user internet connection at a symmetrical rate from 100 Mbps to 1 Gbps (gigabits per second),” Great Lakes

Coffia Energy wrote in its ROBIN application for the Kalkaska District buildout. “While these are initial speed offers, the project has the potential to deliver up to symmetrical 10 Gbps for residential and up to 100 Gbps to commercial users through a dedicated advanced data services network.”

34 JANUARY 2024

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How to manage cash vs. borrowing when interest rates rise We all use credit in our daily lives, whether it’s to help optimize cash flow, create tax efficiencies, or make purchases. A rising-interest-rate environment could be a good time to take a closer look at liquidity strategies and other forms of borrowing. Using cash versus borrowing It could make sense to pay cash instead of borrowing in some instances. Let’s say you have a fair amount of cash and are not planning to invest it in the market. That could be a good solution for buying a car or a house, paying for a child’s education, or expanding a business. Amid higher interest rates, paying cash could be a better option than securing a longterm loan to buy a costly item. “Increased rates may also impact purchasing power for bigger-ticket items (such as homes, boats, and airplanes) traditionally financed over longer periods,” says Brian Singsank, senior lead wealth custom lending specialist, Wells Fargo Wealth & Investment Management. “It’s important to evaluate your balance sheet and wealth plan to make sure they are aligned to help meet upcoming liquidity needs.” Also, if you have an existing variable-rate loan, such as an adjustable-rate mortgage or line of credit, that rate could go up, resulting in higher interest costs. “If it’s still a long-term funding need, when interest rates are rising could be the time to evaluate,” Singsank says. Whatever you decide, timing can be critical. Your investment planners can help you decide on what is best for your current situation. Discuss credit and liquidity needs with your advisors “Be proactive when interest rates change,” says Singsank. “Consider reviewing your wealth plan and related credit and liquidity needs with your banker, advisor, your CPA, and even an estate-planning specialist.” Singsank recommends starting those conversations by sharing your answers to these basic questions: 1. How much in assets would you be willing to liquidate and why? 2. Are you debt-averse? 3. Would you consider alternatives to liquidating your current cash reserves in order to meet your financial needs? 4. Based on your balance-sheet leverage, what is your exposure to rising interest rates? 5. Are you comfortable with the amount you’re paying or may have to pay to service your variable interest payments in a rising-rate environment? 6. As part of working toward your financial goals, do you anticipate upcoming borrowing or liquidity needs? “Once you’ve answered these questions,” says Singsank, “you should better understand whether you need to make changes to your wealth plan, including liquidity and other borrowing strategies, to help meet your financial goals.”

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TECHNOLOGY

Photos Courtesy of ISEA

THE STEM SURGE How leaders are addressing education gaps

By Kierstin Gunsberg TCAPS students will have more handson science, technology, engineering and mathematics (STEM) education opportunities at the end of 2024 – that’s when their brand-new Manufacturing and Innovation Centers are slated for completion on the West Senior High and Central High campuses. The facilities are a response to the growing need for not only STEM-skilled students but a STEMskilled workforce. Each 7,000 square-foot building will offer students the space to expand their knowledge in areas like software engineering and high-tech manufacturing.

Where previous labor generations balanced the workforce with plenty of non-STEM roles, STEM-focused jobs are projected to increase to almost 800,000 nationally over the next decade. Michigan is anticipating more than 16,000 annual job openings in STEM-related fields. Meanwhile, northern Michigan is emerging as a hub for careers in these sectors. “The Grand Traverse region has a long history of STEM careers with established businesses in engineering, geotechnical, advanced manufacturing, technology, and other industries,” said president and CEO of Traverse Connect Warren Call, noting recent steady growth in software and technology startups. “New business growth

and business attraction are a focus of our work in diversifying our local economy and growing family-sustaining careers.” Call cited recent investments by the State of Michigan for the Freshwater Research and Innovation Center and a Build to Scale grant from the U.S. Economic Development Association received by tech startup 20Fathoms as a step forward in fostering more STEM-related jobs across the region. The rise of local STEM jobs is good news for area students because open STEM positions already boast median incomes twice that of non-STEM occupations, pointing to the promise of high-wage, high-demand jobs for learners equipped with these

skills. In a region where the average home price rocketed past $400,000 last year, necessitating a combined household income somewhere around six figures, these jobs are quickly becoming key. Yet, statistics from the MiSTEM Advisory Council, which recommends STEM opportunities for Michigan’s K-12 students, revealed a stark gap between the demand for STEM education and the current resources available statewide. According to MiSTEM, parents recognize the pivotal role of STEM in paving the way for high-paying jobs, but 36% reported their children were not engaged in any STEM learning, especially in households earning under $35,000 annually, empha-

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TECHNOLOGY sizing the urgent need to bridge the gap between aspiration and access to STEM education. As these fields grow and demand for workers – and high pay – deepens throughout the region, youth educators and nonprofits alike are ramping up their efforts to provide adequate skillsbased learning both in and out of the classroom. Fostering the future of STEM As TCAPS tackles outgrowing its current STEM resources, it was barely a decade ago that northern Michigan was something of a STEM desert. Back then the idea seemed less necessary than it did novel, and few programs in these areas were available to students, especially young learners. That’s why in 2010, Bill Myers and a group of other parents founded Newton’s Road, a nonprofit dedicated to creating and supporting STEM learning, promoting critical thinking skills, and broadening pathways to STEM careers. Since then, the organization’s board members have grown to include local leaders from TCAPS and NMC, with Myers serving as board chair, and has hosted and participated in initiatives like MakerFest. The annual hands-on learning event features activities that introduce children to STEM concepts through

partnerships with other nonprofits. When the pandemic interrupted classroom learning, Newton’s Road supplied elementary schools and libraries across urban and rural northern Michigan with over 800 grab-and-go STEM kits to keep grade school learners occupied. “Once you spark a young person’s imagination, it’s important to have the next steps laid out for them, rather than letting that spark die out in the dark,” said Myers, who is president and CEO of climate control technology firm Promethient, Inc. Recognizing that providing educational resources was merely a first-step in guiding local youth towards STEM jobs, Newton’s Road created the Career Investigator. It’s an online portal that acts as a compass for young minds, breaking down the details of STEM careers and the pathways to attain these roles locally, offering job profiles of companies like Munson Healthcare, Cherry Capital Airport, and eFulfillment Service. A motivating factor in creating the Career Investigator, says Myers, was to highlight the many different options for attaining a job in STEM, not all of which include a traditional college education. Instead, Myers says that many of these roles are becoming increasingly more accessible through professional certifications, specialized training, and internships. As northern Michigan’s STEM boon

has grown and in many ways changed since Newton’s Road’s creation, Myers says that Newton’s Road will reevaluate where and how the organization can continue to support learners while taking current and future needs into account. “We need to be agile, but we also need to be listening to the community to see what’s needed and also what’s not needed,” said Myers. “There’s been so many new resources created in the last 13 years. The whole landscape has changed significantly.” Myers cited the under-construction TCAPS facilities for robotics exploration as an example of how advocating for something like robotics is no longer the best use of Newton’s Road’s advocacy work. While robotics programs were once difficult to come by, that gap has since been filled by TCAPS and other organizations. “Staying on the cutting edge of what’s happening is really vital,” said Myers, noting that keeping their programming and resources relevant is at the top of the organization’s priority list for the upcoming year. They’re looking ahead to find out what resources will be relevant and valuable to current students – and future employees – in the years ahead while simultaneously analyzing what skill sets may become obsolete as AI gains traction. “That’s something that Newton’s Road is exploring,” he said.

Myers

Cultivating Great Lakes guardians through STEM education While the majority of STEM jobs might seem catered to computer technology roles, the wide-ranging term describes careers across several sectors and titles, including those in healthcare, finance, and even archeology. In northern Michigan, many of these STEM roles focus on our greatest asset: The Great Lakes. “A key reason we do what we do, in the way that we do it, is that we want

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to highlight careers that are working to benefit the Great Lakes,” said Fred Sitkins, executive director of Inland Seas Education Association (ISEA), a nonprofit that provides marine education to students of all ages. “That’s why we place students in the Great Lakes Scientists or Great Lakes Engineer programs. There, they get to understand these pretty unique careers that are

working to benefit the things that they care about.” Outside of their youth programming, ISEA also collaborates with over 150 schools, offering college internships with a hands-on approach. These internships engage students in active Great Lakes science, utilizing technology like underwater drones and digital microscopes in the hope of cultivating a deeper appreciation for the region’s natural resources. “If folks who are living in and around the Great Lakes region don’t have a base level of understanding about how important this resource is, how it functions, and how it remains healthy, then who’s going to look out for it?” said Sitkins, emphasizing that one key reason for protecting the Great Lakes is the vital role it plays in the economy. “Our natural resources in northern Michigan are critical. That’s why people come here and that’s why people stay,” he said, noting that fostering an interest in the S of STEM, especially when it comes to environmental science, can’t be reduced to rote learning in front of a screen. Instead, he stressed the need for repeated, experience-based exposures beginning in childhood to create a future generation of Great Lakes protectors. “You have to have that personal experience, to touch and feel that water,” said Sitkins. “You have to get muddy.”

STEM By The Numbers • 800,000: The projected increase in STEM-focused jobs nationally over the next decade. • 16,000: The anticipated annual job openings in STEM-related fields in Michigan alone. • 36%: The percentage of children not engaged in any STEM learning.

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TECHNOLOGY

By Jennifer Ewing, columnist

Imagine a workplace where hiring the right person for the job is faster, more efficient and fairer. That’s the promise of artificial intelligence (AI) in the realm of human resources (HR). In the coming years, AI is set to revolutionize HR, reshaping how we hire, manage, and interact with employees. Let’s dive into what this means for the world of work. AI’s most noticeable impact in HR is in recruitment. Gone are the days of sifting through endless piles of resumes. AI algorithms can analyze candidates’ qualifications quickly and impartially, identifying the best fits for a role. This tech isn’t just about speed; it’s also a tool for fairness. By reducing human bias, AI can level the playing field, ensuring a diverse and inclusive workplace. However, AI is a tool, not a magic solution. It’s only as good as the data it’s fed. If the input data is biased, the AI’s decisions could be too. This means companies need to constantly check and adjust their AI systems, ensuring they’re fair and unbiased. Beyond hiring, AI is transforming employee management. Ever had that feeling someone might leave the team? AI can predict that. By analyzing patterns in employee data, AI can flag potential issues before they become problems, allowing HR to proactively address them. It’s like having a crystal ball for employee satisfaction. AI is also a massive time-saver. Bored of answering the same questions over and over? Enter chatbots and virtual assistants. They handle routine inquiries, freeing up HR pros to tackle the bigger challenges. It’s not about replacing humans; it’s about enhancing their roles, allowing them to focus on more strategic and impactful work. Now that you have read this far into this article, what if I told you that AI wrote these first four paragraphs? Did you suspect? Did you know? My guess is that your answers will be that you did not suspect that AI was involved. All of the above are areas of impact that I would have given to you around AI and human resources. I would have also included the dis-

FORWARD FACING AI and its impact on the future of HR

claimer around managing AI in regard to discriminatory practices. So, where does this leave us humans? Still in the driver seat! Yes, AI can help create a news article, but there still needs to be someone with knowledge and authority who can confirm the content is correct and it is speaking to the right audience. And it’s crucial to remember the human element. AI can guide and inform decisions, but it can’t replace the nuanced understanding and empathy that human HR professionals bring to the table. As we all know, when managing humans, one plus one does not always equal two. We still need to be able to assess and interpret situations. However, when looking ahead, AI’s role in HR is only going to grow. It offers the chance to make HR more data-driven, efficient, and fair. It is a way to bring efficiencies into the function to allowing human resources to move away from tactical, administrative roles to ones that are forward facing, impacting the long-term growth of the organization. HR will be able to move away from reactive to proactive measures as predictive AI becomes more standard within the workplace.

As stated above, by AI itself, this isn’t about replacing humans within the workplace but rather growing human impact. Additionally, with the continued candidate shortage, companies will be able to be more productive without adding employees or needing to grow the workforce. This will help in freeing up the labor pool and creating more applicants for the higher process. Beyond human resources, AI will have an increasing impact on other functions such as supply chain, security and personalized marketing. As AI becomes a day-today tool within the workplace, it is important to embrace it but also understand the limitations. AI isn’t perfect. It needs to be used carefully and always with a focus on treating people fairly. It needs to be used it in a way that’s good for both the company and its employees. As AI keeps getting better, it’s going to be exciting to see all the new ways it can help in the success of our organizations. Jennifer Ewing is a partner with Human Resource Partners in Traverse City and works with employers to improve the people side of business.

Uses of AI in HR • Recruitment: automated screenings and candidate sourcing • Employee onboarding: automated workflows and personalization • Performance management: data-driven insights and objective assessments • Learning and development: customized training and e-learning tools • Employee engagements: feedback and predictive analysis • HR analytics and predictive modeling • Benefits administration: automated administration and personalized benefits • Ethical tools: bias detection and compliance monitoring

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JANUARY 2024

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TECHNOLOGY

CAUTION AHEAD: Tips for a digitally secure new year

By Eric Anderson, columnist While October is National Cybersecurity Awareness Month, January is the time when we have a fresh start, a new mindset, and we’re dedicated to building good habits. New Year’s resolutions don’t have to pertain only to the gym and a healthy diet – they can be related to work, too! Here are some essential tips to help safeguard your digital world, year-round. It’s important to understand that you and your data are attractive targets for cyber criminals and it’s crucial to stay vigilant and protect your personal and professional information. Let’s dive right in! Passwords and Authentication Our first tip revolves around passwords and authentication. One of the most important things you can do is use strong, unique passwords for all your accounts. We recommend a minimum of 12 characters - always using a good mix of letters, numbers, and special characters. Consider using a password manager to help generate and store complex passwords securely. In addition to a strong password, you should enable multi-factor authentication or MFA wherever possible to add an extra layer of security. The second or third step in MFA makes it a lot harder for hackers to compromise your accounts. It is one of the best ways to keep your online accounts secure. Software Updates Up next is the importance of keeping your software up to date. Cybercriminals often exploit vulnerabilities in outdated software. Regularly update your operating system, web browsers, and applications to patch any security holes. Most platforms now have automated security updates that can be turned on to take care of this for you. Also, don’t forget about mobile devices. With so much of our sensitive information now being stored on phones and tablets, it is just as important to make sure they are kept up to date. Rebooting all your devices regularly will help keep systems running efficiently and securely. Social Media and Privacy Now that we have your passwords set

and your devices secure, let’s talk social media and privacy settings. Review your social media profiles and adjust your privacy settings to limit the information visible to the public. Avoid sharing personal details like your address or phone number openly on these platforms. Don’t respond or participate in surveys or quizzes that reminisce about specific topics such as “what was your first job” or “what is your favorite food.” You may be giving away the answers to your security questions that can be used to gain access to your accounts. Phishing Awareness Think before you click. Phishing attacks are one of the most common ways that a hacker can get their foot in the door, and they often trick users into revealing sensitive information. Be cautious about unsolicited emails, links, and attachments. Always verify the sender’s legitimacy before clicking or sharing any personal information. Wi-Fi Security Not all Wi-Fi networks are created equally. When using public Wi-Fi, connect to trusted networks and use a virtual private network (VPN) to encrypt your internet traffic. Avoid conducting sensitive trans-

actions or accessing confidential data on unsecured networks. Data Backups Another critical tip is to regularly back up your data. In case of a cyberattack or hardware failure, having a backup ensures you won’t lose your important files. Use both local media such as USB sticks (from a trusted source) and cloud-based backup

Be cautious about unsolicited emails, links, and attachments. Always verify the sender’s legitimacy before clicking or sharing any personal information. solutions such as Microsoft One Drive or Google Drive for added security. Security Awareness Training For our final tip, consider regular security awareness training. Many organiza-

tions offer cybersecurity training programs, and the threat landscape is always changing. Security awareness training will keep you up to date on current threats and best practices to keep your digital world secure. While cybersecurity isn’t the most exciting thing to think about as you plan your 2024, remembering the importance of strong passwords, multi-factor authentication, updated software, careful use of social media, phishing, Wi-Fi awareness, data backups and on-going security awareness will help prevent the headaches (or worse) that come with a compromised account or full-blown cyberattack. By following good security practices, you can minimize your risk and increase your productivity. Stay informed, stay vigilant, and stay secure! Eric Anderson is a Senior Network Engineer who specializes in security at Safety Net, an award-winning IT Managed Service Provider, with offices in Traverse City and Southeast Michigan. For more than 20 years, Safety Net has partnered with small and mid-sized organizations to provide enterprise-level IT support and security. Learn more at www.safetynet-inc.com

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

CHERRY ON TOP

TVC sets new passenger record in 2023, continues expansion plans

Cherry Capital Airport – Michigan’s third largest airport – posted its biggest year ever in 2023 and eyes expansion in future years. We caught up with Airport CEO Kevin Klein to hear more about what’s coming down the runway in 2024.

or maybe less if you can flex your travel to February into March or go later in April. We’re also seeing some other sale specials to big cities throughout the first quarter, like as low as $158 to Chicago for a weekend with United.

TCBN: As we talk here near the end of 2023, your year has been quite a whirlwind!

TCBN: Boy, spring break is so much bigger for you now than 5-10 years ago when you just had the major airlines here.

Klein: Yes, 2023 has been crazy. We’re still waiting for final November numbers, but we already set a new full year [passenger] record in October, and if things keep going as they are, we could finish the year with around 680,000 passengers. TCBN: And where will that put TVC statewide versus all the other airports? Klein: We’ll be solidly third. We’re over 100,000 more than Flint right now, so we will easily be Michigan’s third largest. TCBN: And are December and January fairly busy months around TVC or no? Klein: The holidays themselves are busy, but it’s a time of year when we slow down a bit. We have that bell-shaped curve, using July as our peak, and we’ll begin building toward that peak in February. TCBN: What’s Spring Break 2024 looking like? Klein: We’re seeing a very competitive market. Allegiant has brought in more [flight] frequencies on their popular Florida routes, and we’re seeing a lot of things selling out quickly there. But prices are still good across the board. I’m still seeing fares in the $600-$700 range, and you can save even more by avoiding that end of March through early April peak timeframe. TCBN: That’s certainly not the $239 fares we got used to during COVID! Klein: No, but you can get those fares

Klein: It’s very different. It’s a growing time of year. Having Allegiant here gives us so many more opportunities for sun and fun and has added a new dynamic and capacity. And then we’re adding Fort Lauderdale in May, which will be a yearround route. And Allegiant just continues to grow, with more aircraft and crew. I see

But U.P. airports, for instance, are really struggling. Kalamazoo and Flint and Saginaw are all seeing major decreases. Across the country, airlines are still not taking risks on new communities. They’re flying where there’s a return on investment, picking the winners, and that’s us. TCBN: You’ve really talked about how important using our local airport can be, and a source of pride for the community, but also an economic driver. Klein: Yes, absolutely. One of our goals in 2024 is to really get the community to understand how important it is to fly from nearby, and not just for the convenience, but from an economic standpoint. When someone flies from here, it’s not just

“When someone flies from here, it’s not just supporting an airline, but that’s how all of our grant formulas are made. So flying from TVC just channels money back home, investing in your own community.” more expansions coming for them, which is great for northern Michigan. TCBN: Speaking of northern Michigan, are you seeing fewer travelers leave and drive down to fly out of other airports? Klein: Yes, we’re leaking less than we used to. In 2010 we retained 45 percent of all northern Michigan travelers. Today we retain almost 53 percent. Twenty-four percent leave and fly from Grand Rapids, and 15 percent to Detroit. But when we look more closely at people in individual communities, 74 percent of Traverse City travelers are using TVC, which is wonderful. TCBN: Are all Michigan airports booming like TVC? Klein: Grand Rapids is. Detroit is coming back, with Delta adding more flights.

supporting an airline, but that’s how all of our grant formulas are made. So flying from TVC just channels money back home, investing in your own community. TCBN: What else is happening at TVC? Klein: We’re excited about our new Instrument Landing System for Runway 10, which went active on November 30. We’ve been fighting for this for almost 16 years, and it’s going make a huge impact for the traveler. It goes back to the community investment we talked about. It was a $4.5 million project paid for using that $4.50 fee on every ticket that comes back to the airport. This will solve our major problem of having to cancel or delay more than 100 flights a year due to weather and wind. So important for reliability and passenger satisfaction. That for us is very exciting.

TCBN: What’s the latest with your airline partners? Klein: American announced they will increase the aircraft size for daily flights for Dallas, and they have expanded the Charlotte route from weekends only to daily for next summer. We’ll meet with United in January to talk about Houston in 2024 or 2025. Delta has been slow and steady coming back from COVID, but they’re slowly adding more frequencies and seats. Sun Country did great last year, with close to 80 percent [full] for a brand new route, which is great. They’re scheduled for mid-June through Labor Day, but they will likely expand that this year. TCBN: Your expansion is coming fast, but is the terminal okay to handle all the growth until then? Klein: Yes. We’ll make some adjustments with seating to reduce crowding. As for the expansion, we had a great meeting in October, and all our plans are approved by the FAA for expansion, so we’re proceeding with environmental work and financial planning; that will be 2024. That puts us a little ahead of schedule to hopefully have shovels in the ground in late 2025. So that would be 2026 for the next concourse, initially with four gates and up to a total of eight jet bridges. And more space, restaurants, bars, and retailers. TCBN: Any major predictions for 2024? Klein: That’s always so tough. I think we’ll see continued passenger growth, but not at the rate of this year. Maybe three percent, like what we saw prior to the pandemic. And we’re seeing a lot of interest in TVC because of our growth, so it will be interesting to see if 2024 results in another carrier or additional flights or new cities from existing carriers. We’re getting a lot of interest!

44 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

Matthew Vandermolen in his repair shop.

HEARTS AND SOLES Gauthier’s Shoes and Repair ties past with present

By Art Bukowski

Surviving on service

Tina Martin has seen it hundreds of times over the years. A customer slowly walks into Gauthier’s Shoes and Repair, cradling their weathered old shoes as they would a freshly born baby on its first day out of the hospital. The affection they have for their footwear, which may or may not be actually crumbling away, is almost palpable. “They walk in holding them so tight, almost like they’re a treasure or something,” Martin said. “They’ve had them forever, it’s their favorite pair, they’re so comfortable – we hear all about it.” Then the story goes one of two ways. Repairman Matthew Vandermolen is able to work his magic, deftly breathing new life into what many would consider a lost cause. Or they are in fact a lost cause, and Martin will turn to the showroom in her classic sit-and-fit operation and gesture to the neatly organized rows of new shoes. “That’s when I’ll say, ‘You know, maybe it’s time to find a new favorite,’” Martin said.

Martin’s grandfather Edmund Gauthier began the operation in 1940s in Lake Leelanau, though it’s been in its current location near Tom’s West Bay since 1961. Martin’s father, John Gauthier,

one of only three purely shoe stores in the Traverse City area, and the only one offering full repair services. Yes, many online prices are cheaper. Yes, the selection is bigger when the world is at your fingertips. Martin can’t change any of that.

“We still answer our own phones, we still offer very personal service, we’re easy to get to, we’ve got good parking,” she said. “And of course we have this fine gentleman in the back room that is a fixer of everything, and that’s a big draw.”

–Tina Martin, owner, Gauthier’s Shoes and Repair worked there for decades, employing his daughter Tina since she was a “little teenage tyke.” John is now gone, and Martin has run the business herself for more than three decades. In times past she was one of at least a dozen shoe stores in the region, many of them offering repair. Now she’s

“We have some people come in here sometimes who will take a picture of the box and go online and get it three dollars cheaper, or whatever it is. All small business is really getting hurt by the online stuff,” she said. “But a lot of those people will come right back in here – maybe they need it stretched, or need a bigger size and can’t return it.”

What she can do is offer the best possible service and know-how in an effort to entice people into her shop. Martin feels a strong need to keep service at its highest levels, because aside from being nearby, it’s the best chance she has of setting herself apart from the online world. “We still answer our own phones, we still offer very personal service, we’re easy to get to, we’ve got good parking,” she said. “And of course we have this fine gentleman in the back room that is a fixer of everything, and that’s a big draw.” Martin is also selective about her staff. Small business can live or die by the myriad interactions that occur on a daily basis. “You’re only as good as your crew,” she said. “And I have a really good crew right now.” Out with the old? Vandermolen’s repair room looks like something from a bygone era. Half industrial, half 19th century cobbler, yet all functional. Vandermnolen in his repair shop.

TRAVERSE CITY BUSINESS NEWS

Tina Martin, owner of Gauthier’s Shoes and Repair

The shop also repairs plenty of other items tangentially related to shoes, in form or material. “Sometimes I’ll be really heavy into heel shoes, or it will be a purse week, or during the summer, we have the equestrian stuff up here and we’ll have saddles

and bridles and this and that,” Vandermolen said. “A lot of belts, too. And I’ve even had a guy who owns an orchard who needed all of his apple bags repaired.” Both Martin and Vandermolen are proud of the environmental aspects of the business. Thousands of shoes

WEDNESDAY JANUARY 10 • 5-7PM

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repaired means thousands saved (at least temporarily) from the trash heap. “The landfills are getting less and less shoes because we’re fixing them,” Martin said. “And if we can’t fix them, we might keep the laces or buttons or Velcro and re-use it.”

REC

And it’s fitting, as the very concept of repairing shoes is mostly a thing of the past. Whereas it was once common practice for shoes to be re-soled, refinished or otherwise spruced up, most shoes now are designed to be disposable, and many consumers never give it a second thought. Some of that is because of the ways shoes are designed and built, and some if it is the materials used. “A lot of rubbers and polyurethanes have a life expectancy of six ti 10 years, regardless of brand,” Martin said. “There’s really only so much you can do.” But Vandermolen still successfully repairs thousands of pairs a year. He’s only been at shoes for less than two years, but he has a background in custom wood furniture and spent time as a computer technician. In short, the itch to build and fix has always been in his blood, and he’s getting into a real groove with shoe repair. “It’s basically just reverse engineering, like you would do with any repair,” he said. “You have the basic understanding of how a shoe is built and go from there.” It’s often a puzzle, but Vandermolen enjoys the challenge. He’s hunting for the sweet spot that meets the customer’s expectations while providing an attainable (and sustainable) repair that will hold up over time. “It can be a big challenge, but usually there’s still a way if my willpower is there,” he said.

JANUARY 2024

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46 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

BANKING & FINANCE

WHERE BANKS FEAR TO TREAD CDFIs rush in to finance startups and small businesses

By Rick Haglund Tyler Vandermark was hoping to turn his hobby of renting golf carts into a full-time business, but the Traverse City firefighter had trouble finding financing for TC Golf Carts. “A lot of banks won’t touch businesses like mine,” said Vandermark. But Venture North, a Traverse City nonprofit lender that provides financing to startup and growing small businesses, believed in Vandermark. Two years ago, it lent him $50,000 to acquire 25 new golf carts, which he rents to campgrounds, wedding venues and other events. And when Interlochen Center for the Arts was looking last year to rent 70 golf carts locally for summer events, Venture North partnered with the TBA Credit Union to provide $300,000 to Vandermark’s TC Golf Carts to acquire the vehicles. He now has a fleet of about 120 carts. “Venture North really turned my business into what is now,” said Vandermark, who has since left the fire department to run the company that employees five fulland part-time workers. “They were the only one that would help.” Venture North is a Community Development Financial Institution, a not-well-known type of entity with a mission of revitalizing low-income, rural or

under-served communities by providing loans to small businesses, housing developers and other borrowers who cannot qualify for traditional bank loans. CDFIs are private-sector financial institutions

state. Just a handful operate from northern Lower Peninsula and the Upper Peninsula. One of those, Northern Initiatives in Marquette, has provided financing to more than a dozen Traverse City-area businesses.

“The goal isn’t necessarily to get rich, but to improve the community and provide a social impact. We would be turned down by a traditional financial institution because of our business model.” – Anne Schneider, executive director, Grand Traverse Foodshed Alliance

that include banks, credit unions, loan funds and venture capital providers. There are about 50 CDFIs operating in Michigan, including 25 credit unions, a bank and 24 non-bank loan funds like Venture North. Michigan CDFIs have generated $1.53 billion in loans to Michigan businesses, nonprofits and redevelopment projects, creating 7,600 full-time jobs, according to 2020 data from the U.S. Treasury Department. Most Michigan CDFIs, which must be certified by the Treasury Department, are located in the southern half of the

It recently issued a $50,000 loan to the Grand Traverse Foodshed Alliance, which is the nonprofit partner of NoBo Mrkt, a coffee shop and food hub located in the Commongrounds building on Eighth Street. The loan provided working capital for NoBo, which opened in September. Anne Schneider, the Foodshed Alliance’s executive director, said the nonprofit’s business model doesn’t exactly have bankers knocking down its door to lend it money. “We have a unique business model,” she said. “The goal isn’t necessarily to get rich, but to improve the community and

provide a social impact. We would be turned down by a traditional financial institution because of our business model.” Schneider said Northern Initiatives had a good understanding of the Foodshed Alliance’s operation and was more flexible with its payment schedule. “We couldn’t have done this without them,” she said. CDFIs were created by a federal law in 1994. The legislation sought to increase the access to capital for small business, affordable housing and human development. Locally, Venture North offers a variety of loan and grant programs to startup and small, growing businesses. It was started in 2008 to aid local businesses during the Great Recession and became certified as a CDFI in 2017. Venture North obtains loan and grant funds from state and local governments, foundations and other philanthropies, and investment returns on loans to businesses. Since its founding, Venture North has loaned out $8.4 million, leveraging an additional $26.8 million in business investment. Nearly 1,000 jobs have been retained and created by those funds. But the COVID pandemic threw Venture North’s operations a curve as the 2020 pandemic largely shut down the economy and dried up business lending,

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

BANKING & FINANCE

says Tim Ervin, Venture North’s business and communication consultant. “We pivoted and turned to philanthropy,” he said. “We raised $1 million and made 300 urgent-need grants” to businesses that were struggling to stay afloat in Venture North’s 10-county service area. Now that the pandemic has subsided, business owners are dusting off shelved business plans, and seeking funding and expert advice in expanding their businesses. “We’ve seen a big uptick in those kinds of opportunities,” Ervin said. Among those businesses it has provided financing and guidance to is Eclipse Communications, a Benzonia-based company that provides internet service to business and residential customers, primarily in Benzie County. Venture North offered management consulting services to the company and won federal Community Development Block Grant awards totaling $120,000 for the company. It also financed the Eclipse’s 2019 acquisition of a competitor. “Banks were eager to help us, but we didn’t fit their loan criteria,” said Eclipse owner Chris Varenhorst. As a service provider, Eclipse didn’t have a lot of capital equipment for collateral that banks often require. That wasn’t an issue for Venture North. “They were adept at providing guidance and crafting options we could really benefit from,” Varenhorst said. “Venture North

Schneider

stands as one of the greatest institutions with the greatest people I’ve ever worked with. It’s been a fantastic relationship.” CDFIs launch awareness coalition Many businesses and organizations that could qualify for CDFI funding don’t know they exist. “We’re different,” said Tim Ervin, Venture North’s business and communication consultant. “We’re like a commercial lending institution with a social mission. It takes people awhile to understand that.” Michigan CDFIs earlier this year formed a statewide organization to raise awareness of their services, share best

Vandermark

Ervin

“A lot of banks won’t touch businesses like mine.” –Tyler Vandermark, owner, TC Golf Carts practices and attract new funds. The Michigan CDFI Coalition was founded in January through a $150,000 startup grant from the W.K Kellogg Foundation. In addition, a new state CDFI fund, administered by the Michigan Economic Development Corp., has so far been awarded $94 million from the state budget for grants to qualifying CDFIs. TC Golf Carts’ Vandermark credits the

CDFI mission with allowing his business to expand to a 7,000 square-foot building near Chum’s Corners and add electric bikes to its rental and sales fleets. A traditional bank might have viewed TC Golf Carts as a risky, warm-weather seasonal business, but it’s become a thriving year-round business. “With rentals, sales and repairs, there’s no end in sight,” he said.

48 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

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Some of the strongest motivators in life come from people who doubt our potential. Many are quick assessments made early and based on natural ability, thus negating the strategies and efforts that can help us excel over the long haul. American culture wants us to choose its winners early on. For example, we look to identify children to excel in gifted and talented classes in grade school and have produced an entire industry based on the pressures of high school students to be admitted into top tier colleges. Strategies for moving forward to achieve success is the subject of “Hidden Potential” by organizational psychologist, professor, uber-successful podcaster, and bestselling writer Adam Grant. Grant’s previous book “Thinking Again” described how we take a small amount about something we know and then believe inaccurately that we understand more about that topic than others. That same philosophy follows Grant to his latest book, “Hidden Potential,” which reveals methods for optimizing self-improvement for any stage of life. Through his research, Grant establishes that there is a lot more to be accomplished after those things that initially came easy to us. Grant believes that being uncomfortable with failure is an essential part of the learning process. He dispels the belief that we learn best with a learning style that is most comfortable to us (i.e., being a visual or audio learner). In fact, it takes multiple mistakes to grow, and being in a state of discomfort is better for mastering a skill. Working to full potential isn’t just a matter of routine and practice. Hammering away with the same regimen eventually creates a sense of tedious obligation prevalent in traditional ways that many of us are coached. Instead of practicing until we get it right, Grant recommends that it’s better to mix things up with a reflective break, an alternative activity, or doing something fun to regain the enthusiasm and creativity that helps with reaching high levels of success. This road to achievement also extends learning that occurs through interaction with others. Grant uses the example of the Golden Thirteen, the first group of Black officer Naval candidates to enter officer training during World War II. Facing doubts, scrutiny, and discrimination, the group was forced to intensely train on its own, depending on each other to teach and learn multiple technical skills. Their “All for one, one for all” cross training revealed that coaching and supporting each other accelerated the learning process needed for the group to succeed. In contrast to his previous books, Grant interjects more of his personal accounts into “Hidden Potential.” He learned from his high school diving days

HIDDEN POTENTIAL The Science of Achieving Greater Things By Adam Grant in Michigan the unintended costs of perfectionism. His training reinventions and persistence from that experience likely paved the way for his future work and his writing of this book. Providing the opportunity to excel is the emphasis of a later chapter that highlights the remarkably high student test scores in Finland. Their approach seeks to maximize the potential in every student over the full length of their educational process. Finnish teachers many times follow a student through multiple grades and there is a concerted effort to support each student to reveal their remarkable wisdom and talents over time. This approach counters the approach of countries that traditionally have been stuck in choosing winners versus losers way too early in the educational process. “Hidden Potential” drives home the point that it isn’t where you start that matters, but the intentional growth along the way that leads to fulfillment. Overall, this is a book that would greatly benefit anyone, regardless of stage of life. Grant is at his best when he combines his well-vetted data with an interesting, relatable narrative. This unique mix of enjoyable stories backed up by relevant research make “Hidden Potential” the perfect book for starting off the new year. Chris Wendel works for Northern Initiatives, a mission-based lending organization based in Marquette, Mich. Northern Initiatives provides funding to businesses throughout Michigan and online business resources through its “Initiate” program to small business owners throughout the United States. Wendel lives and works in Traverse City.

TRAVERSE CITY BUSINESS NEWS

MAKING IT IN NORTHERN MICHIGAN

When John Alfonso and his brother Frank founded Grand Traverse Machine back in 1966, they had high hopes. As it turns out, the company has prospered for more than a half century (well beyond John’s death in 1999 and Frank’s later retirement). What started with three employees has grown to a workforce of 42. Entrepreneurship runs deep in the Alfonso family. John’s son, Mike, and three daughters, Carol, Bonnie and Margianne, went in together to buy the company not long after their father’s death. Mike Alfonso is GT Machine’s president and Carol serves as office manager. Meanwhile, the four siblings also own Alfie Logo Gear, which is run by Bonnie (Margianne is retired.) “Our family got the entrepreneurial spirit from our dad,” Mike said. Like his sisters, Mike started working there back in his high school days, and has done pretty much every job in the plant, including run the CNC machines, develop efficiency standards, and work on programming, shop scheduling and project quoting. “I went to Michigan State and got a degree in accounting, but these days I don’t do a lot of that kind of work,” he said. GT Machine, like so many Up North manufacturers, struggled during the pandemic. But then it obtained essential business status because the parts it makes were considered important to key industries and the military sector. One of the hallmarks of GT Machine is its cautious approach to capital investment, Mike says. “We bought a CNC mill two years ago, and before that a new CNC lathe, but that’s about it for recent purchases,” Mike said. All told, the company now has 11 CNC lathes and 7 CNC mills. GT Machine is located on Boon Street in

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GT Machine manufacturers precision-machined components for various industries By Clark Miller

JANUARY 2024

Traverse City. Unlike some manufacturers of its size, it does not have an engineering staff, per se, because most of its customers have blueprints. “But if it’s needed, we can reverse engineer designs,” he said. “We can always rely on an extremely knowledgeable employee who’s been with us since 1983.” GT Machine’s approach to sales is old school. It’s registered with ThomasNet, a detailed source of information about suppliers of industrial products and services, but it doesn’t have a sales staff. The company’s greatest strength is its long-standing relationships with a wide range of industry sectors. Its largest recurring contract is making hydraulic cylinders for Harsco Rail, a major international supplier of track maintenance and construction equipment. Large-scale, high-volume orders for conveyor system components are also an important revenue source. “That’s because we don’t make money setting up equipment,” he said. “Long runs can run for months at a time, which is great for us.” Other types of industries served are aerospace, bottling, oil and gas and making parts (specifically, hinges) for military Hummers. “We think military orders could be a promising area for us,” he said. Having a diverse customer base is “very important,” he says, because of the risks businesses take when they align with one industry. “Diversity is good for every manufacturer,” he said. “It gives you the ability to survive markets ups and downs.” The Grand Traverse Area Manufacturing Council (GTAMC) sponsors this column. The mission of GTAMC is to support a sustainable and globally competitive manufacturing sector for a stronger economy. Learn more about membership options at makegreatthings.org.

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TRAVERSE CITY BUSINESS NEWS

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JANUARY 2024

NEWSMAKERS

1 // DEANN JENNINGS

2 // ABIGAIL BOBBITT

3 // JENNIFER STANDFEST

4 // JOE HALL

5 // ANNA KAROLIONOK

6 // SARAH RODERY

7 // LILLY CLARK

8 // MATT DAKOSKE

9 // HOLLY HACK

10 // KIMBERLY PONTIUS

11 // MCKENZIE WEEKS

12 // BRIAN SIENKIEWICZ

>> BANKING & FINANCE 1 - Deann Jennings, operations manager for Prout Financial Design in Traverse City, recently passed her life & health insurance exam.

>> HEALTH CARE 2 - Abigail Bobbitt has joined Munson Healthcare Great Lakes Plastic Surgery & Skin Care in Traverse City as a physician assistant. She brings a background in plastic surgery to her new position.

3 - Jennifer Standfest has been named chief nursing officer for Munson Healthcare. Standfest brings more than two decades of nursing experience to her new role spearheading efforts to enhance trust, teamwork, and communication among nursing staff and leadership. Most recently, she was chief nursing officer and vice president of patient care at Munson Healthcare Charlevoix Hospital.

Traverse Health Clinic in Traverse City announces the following staff additions:

4 - Joe Hall has joined the clinic as an integrated health provider. He works with the primary care team to address patients’ mental health concerns as part of their overall health and functioning.

5 - Anna Karolionok is a new adult nurse practitioner. She previously worked in hospital, long-term care, and primary care settings.

6 - Sarah Rodery is a new behavioral health therapist. She has more than 15 years of experience in the health care field, including working with people with disabilities, students with trauma responses, and the aging population.

>> REAL ESTATE 7 - Lilly Clark has joined Team Dakoske at RE/MAX Bayshore in Traverse City as a realtor. Clark has been selling real estate for eight years, focusing on residential properties in northern Michigan.

8 - Matt Dakoske, realtor and team lead at RE/MAX Bayshore in Traverse City, was recently presented with the 2023 Ed Petty Lifetime Achievement Award by Aspire North Realtors. The award recognizes an individual who personifies a lifetime of outstanding vision, dedication, and commitment to the local real estate industry.

9 - Holly Hack, broker/owner of EXIT Realty Paramount in Traverse City, was recently named the

Community Steward recipient for 2023 by Aspire North Realtors. The award recognizes dedication and commitment to the local community.

10 - Kimberly Pontius was recently appointed to the National Association of Realtors Sustainability Advisory Committee. Pontius is the CEO for Aspire North Realtors and the Northern Great Lakes Realtors MLS. Pontius has been a leading contributor to the Realtors GREEN designation.

>> OTHER 11 - McKenzie Weeks has joined Springfield Roofing and Transport in Kingsley as marketing manager, focusing on growing the business in both northern and central Michigan.

12 - Brian Sienkiewicz has joined Top O’ Michigan Insurance in Traverse City as a personal lines account executive. As a certified insurance counselor and with licenses in property, casualty, life, health and annuity, Sienkiewicz brings extensive industry expertise to his new role. Please send Newsmakers by the 10th of the month to news@tcbusinessnews.com

54 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

EXPOSURES

Cherry Capital Airport unveiled its new Instrument Landing System (ILS) for Runway 10 Dec. 15. The ILS will be “critical to providing pilots with precise navigational guidance to the existing approach angle for Runway 10 in bad weather or low visibility,” according to a TVC press release.

Gilchrist Farm Winery recently celebrated its new tasting room. Located at 417 N. Saint Joseph St. in Suttons Bay, it features wine and an array of farm-to-table plates. Photo courtesy of Traverse Connect.

Members of Michigan Girl attended the Dec. 7 Downtown TC Ladies’ Shopping Night. Front row: (l-r) Andrea Elliott, Kandace Chapple and Mindy Shoup. Back row: (l-r) Micki Durocher, Danelle Brostrom and Jenny Eberlein.

The Top of the Park was the venue for the Northern Michigan Angels pitch meeting and holiday gathering. Pictured (l-r): Dave Summers, Karin Summers, Deanna Cannon and JT “Chip” Hoagland.

After reaching a deal to buy The Dish on Union Street earlier this year, new owners Joshua and Amanda Thomas have renovated the popular cafe’s interior and rolled out a new branding concept and name, Identity Brewing Company. They are keeping the same menu and recipes from The Dish as well as introducing new items. In addition to a full service bar, they sell their beer on tap and in four-packs to go. Photo by Madi Taylor

TRAVERSE CITY BUSINESS NEWS

JANUARY 2024

A F e e - O n l y We a l t h M a n a g e m e n t G r o u p

Charles Zhang - Michigan’s #1 Financial Advisor by both Barron’s* and Forbes** Serving the Entire Traverse City Area Traverse City Office 236 1/2 E. Front Street, #26 Traverse City, MI 49684 231-943-6988 Main Office 5931 Oakland Drive Portage, MI 49024 269-385-5888 or 888-777-0216

Our Zhang Financial Team

www.zhangfinancial.com

Fee-Only Unbiased Investment Advice

• We uphold a Fiduciary Standard and work with clients on a fee-only basis. • We do not receive commissions, kick-backs, or soft dollars from product sales, eliminating inherent conflicts of interest.

Credibility & Professionalism

• Our team of professionals holds designations and degrees such as CFP®, CFA, CPA, MBA, and PhD. • Charles received his MBA from the Kellogg School of Management - Northwestern University, his MA in Economics from WMU, and Executive Education from Harvard Business School and Columbia University.

Charles Zhang, CFP®, MBA, MSFS, ChFC • Ranked #1 on Barron’s list of America’s TOP Independent Advisors and is the highest ranked NAPFA-Registered Fee-Only Advisor on the list.* • Ranked #4 in the nation on Forbes’ list of TOP Wealth Advisors and is the ONLY Independent Advisor in the top 10.** Minimum investment: $1,000,000 in Michigan/$2,000,000 outside of Michigan. Assets under custody of LPL Financial, TD Ameritrade, and Charles Schwab.

Founder and President

*As reported in Barron’s March 11, 2023 and September 17, 2021. Based on assets under management, revenue produced for the firm, regulatory record, quality of practices, and other factors. For fee-only status see NAPFA.org. **As reported in Forbes April 4, 2023. The Forbes rankings, developed by SHOOK Research, are based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years experience, and the algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. See zhangfinancial.com/disclosure for full ranking criteria.

56 JANUARY 2024

TRAVERSE CITY BUSINESS NEWS

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