TCBN June 2023

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Charles Zhang - Michigan’s #1 Financial Advisor by both Barron’s* and Forbes**

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• 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.

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*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.

NEW GOLF CLUB OPENS IN KALKASKA

Twin Birch Golf Course and Restaurant has opened in Kalkaska. The golf course offers an experience for players of all levels. The restaurant is open for lunch and dinner, and also offers live music. “We are excited to bring Twin Birch to Kalkaska, offering something truly unique for the golf and food enthusiasts,” said owner Kwin Morris. “Our goal is to create a welcoming atmosphere with unforgettable experiences for all who visit us.” Learn more at Twinbirchgolf.com.

SPECIAL FACILITIES FOR YOUR

TRULY FREE OPENS STOREFRONT

Truly Free, a plant-based, refillable cleaning and laundry online subscription service in Traverse City, has opened a retail store at 6261 US-31 in Williamsburg. Truly Free’s new store features all of its online products. Store hours are Monday-Friday, 11 a.m. - 2 p.m. Founded in 2008, Truly Free was one of the first companies to revolutionize the cleaning industry with all-natural products delivered in refillable and sustainable packages.

NEW PROGRAM FOR ENTREPRENEURS

20Fathoms recently announced a new program for entrepreneurs in the Grand Traverse region. Called The Launch at 20Fathoms, the program is designed to remove barriers and help new businesses grow. “Through The Launch at 20Fathoms, we are expanding our startup incubation services and working hard to help more aspiring entrepreneurs in our region,” said Eric Roberts, 20Fathoms executive director. The Startup + Tech Hub is one new resource available through The Launch. It is an online community providing resources and connection for the region’s entrepreneurs, tech professionals, and partners. Visit 20Fathoms. org/launch.

NEW BIZ: TRAVERSE CITY VIOLIN

The Traverse City Violin Company, northern Michigan’s first and only violin shop, has opened at 3003 N. Garfield. The business, owned by Karine Pierson, also has an educational center and provides music lessons. The shop offers new and used violin, viola, cello, and bass sales and repair, as well as luthier service and piano repair service. The shop also has an electric instruments section. MIMusic studio (formerly Vokey Music) provides music lessons and classes on piano, voice, guitar, percussion, and most stringed instruments.

HUMANITARIAN AWARDS FOR ORGS ANNOUNCED

Food Rescue of Northwest Michigan and Traverse Health Clinic and Coalition are the recipients of the first-ever Humanitarian Efforts Awards given by the City of Traverse City Human Rights Commission. The commission established the business/organization humanitarian awards to honor organizations with a sustained commitment to supporting and promoting human rights. Food Rescue, a program of Goodwill Northern Michigan, rescues, harvests, repacks, and delivers more than 2 million pounds of food a year to food pantries and community meal sites. Traverse Health Clinic and Coalition provides people with access to vital health care services regardless of their ability to pay.

BEHAVIORAL HEALTH CARE FOR ALL AGES

GT RESORT RENOVATION COMPLETE

The Grand Traverse Resort and Spa is at the finish line of a $10.5 million transformation of the original six-story hotel first opened in 1980. “This is the Resort’s most expansive renovation project to date,” said Matthew Bryant, general manager. The project added two

SERVICES & SUPPORT FOR EVERYONE

Crisis Intervention Services

• 24/7 Crisis Line 1-833-295-0616

• 24/7 Crisis Welcoming Center at 105 Hall Street, Traverse City

• Mobile Crisis Teams for Adults and Children

• North Hope Crisis Home – Six new adult crisis residential beds opening in Traverse City in June with support from NLCMHA

Integrated Health Services - Northern Lakes Integrated Health Clinic

• Primary health care clinic for anyone in the community, all ages, all/no insurance. Accepting new patients. Call for appointment: 231-935-3062.

Kandu Island Drop-In Center – a safe place to be, for all, on S. Garfield.

CMH SERVICES FOR ELIGIBLE PEOPLE

• Psychiatry

• Therapy

• Counseling

• Case Management

• Autism Applied Behavioral Analysis

• Specialized Residential Services

• Long-term Services and Support

• Traverse House & Club Cadillac Clubhouses

• See full list at northernlakescmh.org/services

WHEN IN DOUBT, CALL US!

24/7 Crisis Line: 833-295-0616

Access to Service: 800-492-5742

Customer Service: 800-337-8598

junior suites, and updated four hospitality suites, all guest rooms, corridors, elevators and more. “We brought the beauty of northern Michigan into the rooms while also celebrating our owners, the Grand Traverse Band of Ottawa & Chippewa Indians, with artwork and décor,” added Bryant. The renovation, begun in November, was done entirely by Michigan companies, including Bouma Corporation, D&W Mechanical, Denoyer Brothers Moving, Northern Michigan Glass, Windemuller, and TC Millworks.

of being adaptable in the workplace. Northwest Michigan Works! is offering G.R.O.W. workshops to businesses, organizations, and schools.

PARADE OF HOMES: JUNE 15-18

The Homebuilders Association of the Grand Traverse Area is hosting the 34th annual Parade of Homes, June 15-18. Top area builders will showcase new and remodeled homes during the four-day event. Parade tickets are $18 in advance (Oleson’s, Bayview Flooring, Northern Building Supply, HBA office) and $20 at the door. More information available at the Parade of Homes app.

FOOD TRUCK TURNS INTO RESTAURANT

New life is coming to the former Silver Swan restaurant at 13692 South West Bay Shore Drive in Greilickville. Glendale Burger Shop, owned by Brittney and Bray McCabe, is taking over the space. The couple previously operated the Glendale Ave. food truck at The Little Fleet for the last few years. The restaurant will seat approximately 30 indoors and will offer both dine-in counter service and takeout orders. The menu features the smash burgers and fries made popular by the truck, plus former rotating specials – such as patty melts and fried chicken sandwiches – along with other sandwiches. There are no immediate plans to have alcohol sales.

NOMI IN VOGUE

Northern Michigan was recently featured in Vogue magazine, in a spread which highlighted many of the region’s shops, restaurants, farms, beverage producers, events, and natural attractions. Businesses receiving a mention included: The Cooks’ House, Farm Club, Boathouse, Modern Bird, Hexenbelle, Crocodile Palace, and The Mill, along with the soon-to-be-opened Mission Proper on Old Mission Peninsula. Farm and purveyor staples Lakeview Hill Farm, Bardenhagen Berries, Buchan’s Blueberry Hill, Idyll Farms, Saltless Sea Creamery, Carlson’s Fish Market, and Bellaire Smokehouse are also featured in the article. Numerous local wineries, including Left Foot Charley, also got a mention, as did downtown TC’s Wilson Antiques and Elk Rapids Antiques.

G.R.O.W BACK TO WORK

Inmates at the Benzie County Jail are receiving training that will help them successfully re-enter the workforce when they’re released.

G.R.O.W. (Getting Ready for Opportunities at Work) Workplace

Excellence soft skills training is being offered through a partnership between Northwest Michigan Works! and the Benzie County Sheriff’s Department. These courses coach attendees on what it means to be a dependable employee, how to work with multiple generations respectfully, what clear and positive communication looks like, and the value

FOOD CART FOR POOCHES

A new kind of food cart is now operating in Traverse City. Archie’s Dog Cart provides all-natural dog treats and apparel. The treats are all licensed through the Department of Agriculture. Archie’s Dog Co., founded by Ellie Kebler, started at the Sara Hardy Farmers Market last summer. The cart will be at the downtown TC market again on Saturdays and popping up elsewhere downtown Friday-Sunday. It’s also available for private events and offers delivery on all orders for Traverse City residents. Follow @archiesdogco on Instagram for up-to-date location information.

COMMENTARY BY JODY LUNDQUIST TRIETCH

SMALL BUT MIGHTY: Diverse small businesses and startups set TC apart

I got into the taxi tired, but was at least sated by the breakfast bagel and coffee I had picked up after deplaning in Las Vegas.

I bee-lined to the taxi line and was able to hop right into the Ford that immediately pulled up. I hadn’t thought much about the lack of a wait. Everything about my morning – from my 4am wake-up to my now-9am taxi ride – had gone smoothly. It probably had something to do with the fact that it was Tuesday, not a notoriously busy day in Las Vegas.

My taxi driver, Charlie, turned out to be rather talkative, despite the (for Vegas) early hour. In the short drive to the Strip, Charlie spoke about the COVID-19 pandemic through his lens: the devastating change it had wrought on the tourism industry, the impact of which continues to this day.

The market for land, which had been funded by disposable income, and for enclosed spaces like hotel rooms and clubs, was hit by the double-whammy of the pandemic and now-tightening economic conditions. Indeed, I noted to him that my hotel room was only $49 per night. He quickly listed others with prices bottoming out at $10-15 per night.

The lesson from my ride? Never bring a black light to a hotel room.

Well, that ... and the need for diversifying our local economy to shield from the impact of pandemics and economic shifts.

Over the next few days at the Angel Capital Association Summit, I learned that not only are we on the right track, but we’re also ahead of many communities. Communities that have come to the same conclusion, including organizations in Nevada, are now battling to overcome

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the high stakes of placing their bets on single economic drivers.

While our reputation as a tourist haven is well-deserved, it is not in our long-term best interests. Our economy extends beyond the allure of golden beaches and wineries. Traverse City is also a growing hub of entrepreneurship. As CFO of a venture firm and executive director of an angel investor group in our beautiful town, I have witnessed the evolving business landscape, revealing a promising trend that underlies the importance of a diverse and dynamic economy.

Boomerang Catapult (early-stage venture fund) and Northern Michigan Angels (local angel investors) are committed to nurturing this startup culture. Together, over the past five years, the two organizations have invested $18 million in 20 local startups, contributing to job creation and local economic development.

The 10-to-1 magnifier on attracting capital typical of venture funds applies here as well. These investments have attracted over $180 million in additional investments and created connections to a robust and active network across the Midwest.

If one were to follow a ‘startup ecosystem playbook’ providing a strategic roadmap to economic growth, we’re off to a good start. We must continue to:

1. Foster collaboration, encouraging partnerships between startups, educational institutions, and established businesses to stimulate innovation and skill-building.

2. Provide networking opportunities and mentorship, facilitating connections between experienced business leaders and entrepreneurs.

3. Increase access to capital, promoting local investment, be it through angel in-

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vestors, venture capital, or favorable loan options from local banks.

Entrepreneurial businesses are more than just a source of local employment –they are the key to building resilience in our community. Studies have shown that communities with a diverse economic base, especially those oriented toward high-value creation, are more likely to weather economic storms.

As the world faced unprecedented challenges due to the COVID-19 pandemic, our local economy demonstrated remarkable resilience buoyed by the force of this growing ecosystem.

However, the continued growth and diversity of our economy are not guaranteed. They require strategic investment and unwavering support from government, financial institutions and our community. The reality of growing communities like ours involves inevitable strains, such as high demand for affordable housing and the need for childcare services.

To build a robust support infrastructure, we need public policies that foster a conducive environment for startups and small businesses. This includes offering tax incentives for startups, supporting zoning laws that are friendly to businesses, and promoting grant programs that encourage entrepreneurship and collaboration to bring more founders the resources they need to scale and thrive.

Banks and financial organizations play a significant role in nurturing this ecosystem. According to a report by the Federal Reserve, approximately 40% of small businesses in rural communities depend on local banks for their financing needs. In Traverse City, our local banks have been instrumental in supporting established

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businesses’ growth. However, it’s the early-stage capital provided by angel investors and venture funds that have spurred new startups to form or relocate here.

This investment signals faith in our entrepreneurs and fosters economic diversity, empowering sectors beyond our dominant tourism industry. The same attributes attractive to tourists are also attracting entrepreneurs, innovators, and professionals to relocate here. The growth of our small business sector feeds into our tourism economy, enhancing the experience of those who visit while ensuring the wealth stays in our community.

As we look toward the future, fostering a supportive startup economy is crucial. Innovative young companies bring fresh ideas, create jobs and can have a significant positive impact on local economies.

As community members, we can each contribute to our collective economic future. By supporting local businesses –whether that’s shopping at local stores, using local services, investing in local startups or advocating for policies that support small businesses – we help ensure the continued vibrancy and diversity of our local economy.

Unlike Las Vegas, with its gamble on tourism, Traverse City has made a bet on its ability to diversify – creating a dynamic environment in which we can do more than just welcome tourists to play. We can go to work … with a view.

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.

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SPARTAN STRONG

The special bonds between the Cherry Capital and Michigan’s biggest university

By Craig Manning

One hundred and eighty miles stretch between downtown Traverse City and the main campus of Michigan State University (MSU) in East Lansing. Increasingly, MSU’s presence and investment in northern Michigan is shrinking that distance for students, alumni and community members alike.

Today, MSU has numerous ties to Traverse City, ranging from the wellknown MSU Extension program to an increasingly robust bridge between northern Michigan and the MSU medical school.

The MSU Extension dates back more than 100 years. It was 1907 when MSU – then Michigan State College – hired its first livestock field agent. That staff member was technically the first Extension employee, even though the program wasn’t formally organized until the following decade.

In 1914, the United States Congress passed the Smith-Lever Act, which officially created the Cooperative Extension System. That act obligated federal land grant colleges to oversee the new system by providing education and outreach services to outlying areas of their states. Since Michigan State College was one such land grant institution,

it had a duty to undertake statewide Extension work.

(Note: Land grant colleges are higher education institutions borne out of the first Morrill Act, signed by Abraham Lincoln in 1892. That act granted feder-

The Grand Traverse County office (or District 3 office) of the MSU Extension services six counties in the region – Grand Traverse, Leelanau, Benzie, Antrim, Kalkaska and Manistee – and is based in downtown Traverse City.

ing educational outreach, research and other resources to help farmers improve their chances at success.

One major MSU Extension program in the region is the Northwest Michigan Horticulture Research Center, a 137acre agricultural facility that MSU touts as a premier research site for integrated pest management, horticultural production and handling, value-added processing, marketing, and farm financial management practices.

ally controlled land to states – including Michigan – and allowed them to use that land for multiple purposes, including to endow land-grant colleges. MSU is one of four land-grant colleges in Michigan, along with Saginaw Chippewa Tribal College, Bay Mills Community College, and Keweenaw Bay Ojibwa Community College.)

MSU describes its Extension program as a mechanism that “helps people improve their lives by bringing the vast knowledge resources of MSU directly to individuals, communities, and businesses.”

According to District 3 Director Jennifer Berkey, the ultimate goal of the MSU Extension is to meet community needs, which means each district has different priorities based on the unique flavor of the region it serves.

In northwest Michigan, Berkey pointed to the diversity of our agriculture as what defines the flavor of the region – at least in terms of Extension services and priorities. In particular, the District 3 office works closely with local tart cherry growers, apple growers, wine grape growers, and hops growers, provid -

“We do research on the critical issues facing our area’s different commodities, and then we bring that knowledge back to the growers through updates, farm visits, outreach events and more,” Berkey explained. “We’re trying to answer those cutting-edge types of questions that our farmers are having specifically around their crop production.”

Other ag-based programs abound. Youth 4-H programs teach kids and teens about livestock, animal care, business skills and more. The MSU Extension Product Center, meanwhile, works with food-based or bio-based businesses and entrepreneurs throughout the state, helping them develop and nurture their ideas, work through regulatory hurdles, and get their products or business concepts to market.

“Thanks to the Extension, every community has access to our whole statewide network.”

– Jennifer Berkey, District 3 director, MSU Extension

According to Berkey, a long list of local agricultural businesses has thrived with help from the product center. This spring, for instance, the Northport-based Hallstedt-Homestead Cherries won the product center’s “Barrier Buster” award, which recognizes a Product Center client that reduces or eliminates barriers to entrepreneurial success at the local, regional, or state level.

The Extension is also adding new programming to its slate each year. Last summer, the Extension teamed up with local restaurateur and sommelier Amanda Danielson (owner of Trattoria Stella) to launch the “Dirt to Glass” conference.

“That program asked, ‘What can we do from a soil perspective to be able to improve the quality of the wine that’s being produced here in northern Michigan?’” Berkey explained. “Leading speakers from across the nation were brought in, either via Zoom or in person, to provide this cutting-edge information to our local growers.”

By popular demand, Dirt to Glass will be back for a second year this August.

Overall, Berkey thinks that the value of Extension programming is how it can provide a quick link between the pain points, concerns, and needs of regions like northern Michigan and the hub of knowledge and expertise that MSU has on its campus in East Lansing.

“So, let’s say Kingsley had a particular issue that they needed to solve around water safety, or water ecology, or something with regard to septic,” she said. “We would likely be able to tap in folks from down at MSU proper to come up and speak to that particular issue that might be facing that community. Thanks to the Extension, every community has access to our whole statewide network.”

While every community in the state has access to Extension services, not every community has all the other MSU-affiliated programs that Traverse City does. Take the MSU Federal Credit Union, founded in the 1930s in East Lansing, but operating two branches in Traverse City since 2019. Or take the region’s extremely active MSU alumni association, the Grand Traverse Area Spartans, which counts more than 7,600 Spartans among its local contingent.

The group hosts regular events in the region, including networking engagements, get-togethers at 7 Monks to watch MSU basketball and football games, volunteer opportunities, and the annual Scholarship Golf Outing & Luncheon at Grand Traverse Resort and Spa, scheduled for June 30 this year.

Perhaps most unique of all is the growing link between Traverse City and the MSU College of Human Medicine. That college is a community-based medical school, which means that rather than having one central campus or hospital where all students learn and do their hospital rotations, enrollees are scattered across the state at eight campuses, 57 community hospitals, and over 90 clinics.

One of those campuses is here in Traverse City, where students hone their medical skills not just at Munson Medical Center, but also at the other seven Munson Healthcare hospitals as well as additional participating hospitals like MidMichigan Health Center in Alpena and Spectrum Health Ludington Hospital.

According to Norman Beauchamp, who serves as MSU’s executive vice president for health sciences, the College of Human Medicine places 12 students per year in northern Michigan, where they do their third and fourth-year medical

Beyond training the healthcare professionals of tomorrow inside the communities that they will hopefully choose to call home, Beauchamp noted that MSU’s on-the-ground presence in areas like northern Michigan allows the College of Human Medicine to tackle research projects that relate to specific regional health problems, such as breast cancer.

“One of the things we identified is that Grand Traverse County has the highest rate of breast cancer in the state,” Beauchamp noted. “It’s about 20% higher than the average for the state, according to the National Cancer Institute, and we don’t know why.”

Beauchamp says that having a researcher in Grand Traverse County to focus on this question can help ascertain if there are modifiable lifestyle risk factors.

“...(T)hings such as nutrition and obesity, that could be used as mechanisms to lower cancer,” he said.

The MSU College of Human Medicine is also a partner in the growing push to build a health-tech hub in Traverse City. TCBN has previously reported on numerous innovative biotech companies that have decided to relocate their operations to northern Michi -

Boomerang Catapult, and other players to establish a kind of health innovation district in Traverse City.

A rubric for that kind of health innovation cluster already exists in the MSU repertoire: The university’s Grand Rapids Doug Meijer Medical Innovation Building is a public-private collaboration that seeks to be a health innovation hub for biomedical research, bioengineering, and health technology.

“In an innovation district, it’s bringing together institutions, local government, federal government, public, private, you name it,” Beauchamp explained. “It gives you the capacity to bring discoveries more quickly to people to disseminate them, but it also allows you to train students in an innovative environment, and it brings businesses into the community.”

Putting that kind of district in a rural healthcare landscape like northern Michigan, Beauchamp continued, could be a genuine game-changer.

“When I came back (to Michigan) to improve health, one of my priorities was to address the social determinants of health: stuff like access to food, healthy places to live, jobs,” Beauchamp continued. “That’s why we want to build this.”

Berkey Beauchamp

The MSU College of Human Medicine is also a partner in the growing push to build a health-tech hub in Traverse City.

school rotations at local hospitals and clinics. Since the Traverse City campus opened in 2009, MSU has trained 136 future medical professionals in northern Michigan.

“And what’s nice is about 30% of those students stay,” Beauchamp said, which in turn helps address gaps in rural healthcare.

Beyond training the healthcare professionals of tomorrow inside the communities that they will hopefully choose to call home, Beauchamp noted that MSU’s on-the-ground presence in areas like northern Michigan allows the College of Human Medicine to tackle research projects that relate to specific regional health problems, such as breast cancer.

“One of the things we identified is that Grand Traverse County has the highest rate of breast cancer in the state,” Beauchamp noted. “It’s about 20% higher than the average for the state, according to the National Cancer Institute, and we don’t know why.”

Beauchamp says that having a researcher in Grand Traverse County to focus on this question can help ascertain if there are modifiable lifestyle risk factors.

“...(T)hings such as nutrition and obesity, that could be used as mechanisms to lower cancer,” he said.

The MSU College of Human Medicine is also a partner in the growing push to build a health-tech hub in Traverse City. TCBN has previously reported on numerous innovative biotech companies that have decided to relocate their operations to northern Michi -

gan – from IncellDx, which is working to develop a solution for long-haul COVID-19, to Atterx, which is developing therapeutics to combat the rising problem of drug-resistant bacteria.

Beauchamp says he is well aware of those newcomers, and is working side-by-side with Munson, local tech incubator 20Fathoms, Casey Cowell of Boomerang Catapult, and other players to establish a kind of health innovation district in Traverse City.

A rubric for that kind of health innovation cluster already exists in the MSU repertoire: The university’s Grand Rapids Doug Meijer Medical Innovation Building is a public-private collaboration that seeks to be a health innovation hub for biomedical research, bioengineering, and health technology.

“In an innovation district, it’s bringing together institutions, local government, federal government, public, private, you name it,” Beauchamp explained. “It gives you the capacity to bring discoveries more quickly to people to disseminate them, but it also allows you to train students in an innovative environment, and it brings businesses into the community.”

Putting that kind of district in a rural healthcare landscape like northern Michigan, Beauchamp continued, could be a genuine game-changer.

“When I came back (to Michigan) to improve health, one of my priorities was to address the social determinants of health: stuff like access to food, healthy places to live, jobs,” Beauchamp continued. “That’s why we want to build this.”

MSU’s Doug Meijer Medical Innovation Building in Grand Rapids

‘It’s Easy to Vilify Tourism’

Hospitality

growth, inflation, staffing and STR challenges

By Craig Manning

Like it or not, tourism is still the top driver of economic activity in northern Michigan. At the outset of yet another busy summer vacation season, how is our local hospitality industry coping with labor shortages, massive inflation, and the rise of short-term rentals? What’s summer 2023 to look like? We convened a panel of local tourism and hospitality leaders for a roundtable discussion to find out.

Our panel includes:

• Trevor Tkach, president and CEO, Traverse City Tourism

• Matthew Bryant, general manager, Grand Traverse Resort and Spa

• Amy Parker, general manager, Park Place Hotel & Conference Center

• John Melcher, CEO, Crystal Mountain

• Teresa Woods, owner, Visit Up North Vacation Rentals

What’s your read on the state of the local tourism industry? Are we back to preCOVID levels, or are we still recovering?

Bryant: Largely, the concerns from COVID are gone. But I think the business has changed again, because now you have inflation that’s impacting us. So business

has kind of spun the other way [than it did during the pandemic]. FIT (free independent traveler) business is trending down, but group business continues to grow. Group business is so strong they’re adding the staycation on top of it, but the economy is definitely impacting the FIT. So, while we’re out of COVID, we’re in something totally different now.

that we had with labor, but also the capacity restrictions.

I think we’re still seeing a continued demand for outdoor activities, including people that came up north for the first time and really got to enjoy it. And hopefully, we can turn them into lifelong guests that we welcome back every year. But I would say, overall, I think we’re in a good space.

mand – specifically, the corporate groups – is very high. I think a lot of that has to do with the fact that a lot of businesses were remote, or are still remote, and they have that desire to have in-person interaction with their off-site meetings.

Parker: And I think what Traverse City Tourism (TCT) is doing regarding the FIT market – Trevor, correct me if I’m mistaken – but it’s so important for us to massage that FIT market because it’s nearly non-existent. The transient is not as strong, so we need to replace it with something.

Melcher: Our industry saw such an extreme impact with the pandemic. We closed our doors thinking it was just going to be two weeks, and then we had to figure how we were going to open up safely and provide a good experience to guests. We got on our feet pretty quickly after things started opening up, but then all of us dealt with the surge of interest from people wanting to get outdoors, specifically in northern Michigan. So then, the challenge was huge demand coming our way, and trying to figure out how to service that demand with then constraints

Parker: I agree with what Matthew said about FIT. Transient, for us, is not as strong, especially moving into the summer. I do anticipate that we’ll book transient closer to their anticipated arrival date. Group is very strong. The association market just seemed to have exploded, which is good for us, because it creates a really nice base.

Melcher: We’re seeing the same thing. With the leisure traveler, the booking window has gotten much shorter than it was the last couple years. And the group de-

Bryant: I think one thing we cannot forget is a short-term rental (STR) piece and how that is impacting FIT. The biggest way we see that [at The Resort] is that our rooms are down, but our golf continues to grow. As we survey the golfers, that’s the first thing we ask: ‘You’re not a Resort member or a Resort guest. Where are you staying?’ And they tell us, ‘Oh, we’re renting this house here, or this condo there.’ So the FIT is a morphing type of customer. They’re looking for different experiences, and a traditional hotel isn’t [what they want], but they do want to experiences what we have at The Resort.

Something interesting is that, with COVID, golf has just skyrocketed. Even already, starting this season out, we’re ahead

“Currently, I have no dishwashers in the entire Resort. I have salaried managers taking turns doing that right now.”

–Matthew Bryant, general manager, Grand Traverse Resort and Spa

leaders weigh in on

of last year, which was ahead of the year before, which was ahead of the year before. So that just goes to show you that FIT is a morphing customer. The age demographics are changing, and they’re going more to that STR. So, we as The Resort, we have to really look at and change our marketing

of membership. Grand Traverse County has more than 4,000 total hotel rooms that we represent. Add Benzie County on top of that and you’ve got another 800. Some of them are STRs. Only some of them are full-service properties, so our analytics may show something a little bit

tion, more than a dozen years. So that’s exciting. And I’m getting a lot of calls in my office of people seeing the ads from outside-of-market. That’s a good sign. The campaign is being seen and recognized, so now it’s just about conversion.

Where does that lead? Hopefully,

shortage? What is your organization doing to address it?

Bryant: Negative 10? We just opened our housing unit this past weekend. So, that’s [space for] 48 new international H-2B and J-1 [visa] workers, and it takes us to housing for 124 international

Utilize design/build to construct a new, larger medical office that enhances patient experience, improves efficiency and meets HIPAA regulations.

Burdco didn’t cut corners.They always did quality work and actually went above and beyond. That gave me a lot of peace. I think Burdco, especially since Mike Brown is at the helm of this, really exudes character and quality in the facilities they build and stand by.

Bryant Melcher

Tkach

Woods

Parker

Harborside

Mike Brown Owner, Burdco

Dr. Eugene Wang President, Harborside Spine &Sports Center

– Eugene P. Wang, D.O. President, Harborside Spine & Sports Center, Petoskey

can’t keep up with inflation. We’d close our doors. And I don’t know how you recruit any more entry-level hospitality people that love to wash dishes, or to clean rooms.

To work the beverage carts [on the golf course] this summer, I had 800 girls apply. I only need 40. To all of those people, we said. ‘Well, we’ve got server jobs in Aerie!’ Nope, they want bev cart jobs, because they know that those girls make incredible tips. So, it’s all specific to a certain genre [of jobs]. Golf? Every golf job is full. Applicants want to be outside; they want to get the free golf; they know the benefits of [those jobs]. But you go inside – front desk agents, third shift, retail, bartenders, servers, cooks – and we’re just dying. Currently, I have no dishwashers in the entire Resort. I have salaried managers taking turns doing that right now. We just had a banquets conference in where we had 600 people for breakfast, lunch and dinner yesterday. We were all down there doing dishes. I don’t know how you recruit people for those jobs anymore.

Parker: We had a 450-person event last night, with 13 employees. I was there. I worked the event. My managers worked the event. We just don’t have enough people. I had a line cook who makes $20-something-per-hour washing dishes last night. That’s an expensive dishwasher.

Melcher: The international staffing, we know, is going to be a key component of

our future. Certainly, if you look at the demographic trends of the country, this is not a problem that’s going to go away. It’s just going to get worse. So, we’ve been investing in housing for our international staff, too. We went from being able to house 16 folks a couple years ago and will be up to 58 this year, and we’ll continue to look at that because that is an integral part of our strategy going forward.

We’ve also just signed a collaborative partnership with the Ferris State University that will place interns on the ground for real work experience in our facilities, but which also allows our employees to get continuing education and certifications in a whole range of different disciplines and topics. That will hopefully improve their job satisfaction and act as a retention strategy for us.

Bryant: Internships are great, because that’s your bench. This year, we have 31 interns. We could have more, but we have no place to house them. But we have been very successful at capturing those interns for our full-time jobs. Central Michigan has a great 30-week program, and I think we’ve hired 4-5 [CMU grads] in the last three years that did their 30week internship with us, graduated, and then we hired them. That’s probably our best way to find people. And those people still struggle with finding housing; they end up living in Cadillac and Mancelona

and commuting, because there’s nothing affordable for them [in Traverse City].

Melcher: Definitely. A huge part of the struggle here is affordable workforce housing. We’re starting to get some traction –certainly in our neighborhood, with some of the projects that the Homestretch is doing. Hopefully, we’ll have one down the street from us. But I think the one down the street is only going to be 32 units, and the last study was that we’re about 620 units short in our area. I’m sure it’s worse as you get closer to Traverse City. I think,

as a region, we’re going have to figure out how we get more of these affordable housing projects up and running to keep the workforce close to our businesses.

Matthew talked a bit about inflation and its impact on wages. Beyond salary, how is inflation impacting your organizations, and local tourism?

Bryant: It’s affecting everything. All of our food costs, our cost of goods, our retail. We have to watch this stuff every single day. Before, at our restaurants, we

could let our prices run a whole year. Now, we’re looking at them almost every other week, because different items spike and you can’t lose that percentage [profit margin] because food and beverage is so tight anyway. So, that’s a tough thing. Either we’re taking menu items off, or we’re taking prices up. I’ve never done that much pricing with food and beverage in 30 years of being in hospitality.

Parker: I locked in our natural gas price three years old, so it’s decent cost of gas. Water is astronomical. Water and sewage is very high. But to what Matthew said about food costs, it’s very high. Our chef has to be very creative in portion sizing and substitutions. It really pushes the F&B team to do things differently.

Bryant: And if you think about groups, they’ve made their budget out a year in advance. It used to be we could do 60 days out with banquet menus. Now, we’re pushing two weeks out on the orders, and cutting and reducing the quality of a product to make their budget. That makes it very, very challenging. Some of them are willing to pay more, but most of their budgets are fixed because they’ve already sold registrations. They can’t increase their prices [to attendees].

Melcher: It’s really true that inflation is touching every area of our operations.

We are doing some road repair work [at Crystal Mountain], and it’s amazing how much asphalt has gone up in the last 30 days. As Matthew said, we’ve got to really keep our focus on what the costs are to make sure that we’re not destroying the thin margins that we do enjoy.

There’s a lot of debate about how to integrate short-term vacation rentals into the local tourism space. What’s the right balance?

are the worst vacation rentals that you could possibly build. And all these new little companies are coming in going, ‘Hey, I can rent your one bedrooms!’ So, the market is so saturated with all this crap right now, and I’m sure the hotels hate them too. But then we get blamed for the housing market, and it’s so frustrating.

I was at the East Bay Township meeting last night until 10:30pm, hearing about how vacation rentals are ruining the hous-

market, our kids don’t have all these bells and whistles in the schools that they have.

Bryant: I think The Resort is a prime example of good balance. It’s a PUD with STR condos there, a hotel, and long-term housing. That’s how you really protect the core entity of the destinies of Traverse City. If government has to be involved, then we need to find the proper zoning to put STRs in the right location and in the right box, so that it doesn’t impact your house, your kids, this neighbor, that neighbor…

Woods: We [Visit Up North Vacation Rentals] have been in business since the ‘70s and doing vacation rentals forever. It has always been a really wonderful thing for people to be able to keep their homes in their family. It’s been a great thing for people who are buying a second home and want to come up here and retire at some point, or that want to just use it for their family part of the time.

But with the new boom of Airbnb stuff, you have all these buildings going up with a million one-bedroom units, which

ing market, and how [the township] is going to put a moratorium on them because of the fact that there’s no houses for locals to live in. And I’m sitting there thinking, ‘Okay, what about the 4,000-square-foot home that I manage on Spider Lake? Or the family cottage that will never be a long-term rental?’ What about these things that have been rentals forever? It’s just a really tough time, because we used to be seen as this blessing, because these townships rely on the second home market. If they do not have that second home

Crystal Mountain is another prime example of that. It’s designed as a destination with multi-use elements. To me, that’s the best way to go. I have no preference of how many STRs you have. But think of the core of why people come here. Think of the community they experience downtown: the shops, the restaurants; they want to experience that stuff. But you can still put them in a nice location and make sure they’re there. I think that’s a good way to go.

And then you have the lakes, the beaches; that’s a different type of destination. And a lot of [homes in those areas] are already second homes, so they’re ideal for short term rental. They’re already set up for it, and people have been doing it for decades: having places on beaches where they only spend part time, and [renting those out short term] is not

“I think a lot of times, sadly, tourism has been a four-letter word. It’s easy to vilify tourism. But the reality is it’s a big part of the economy.”

–Trevor Tkach, president and CEO, Traverse City Tourism

really going to impact you as a resident. Because how many year-round residents live at those lakes and those beaches? Not as many as in the city core, in apartments and subdivisions, or up in Holiday Hills. That’s where your yearround residents are.

Woods: When we were the only show in town [for vacation rentals], I’d have people calling me from Holiday Hills, or down on Avenue E, and we’d say, ‘No, those homes are not appropriate for vacation rentals.’ Those are residential neighborhoods. And the problem with what the townships are doing now is they have to throw the baby out with the bathwater. If STRs are good for this part, and it’s zoned the same as this other part, then it’s either all in or it’s all out.

Trying to get a handle on that is very difficult. Because as soon as you start to say, ‘Ok, well you can’t do these smaller houses [as STRs],’ or ‘You can’t do an Airbnb where you live there and also rent,’ then the people start saying, ‘Listen, I’m not a wealthy person; these wealthy people with big cottages are allowed to do this, why can’t I do this and pay part of my mortgage so I can afford to live here? Which is a thing now! People are having a hard time just living here, so they pull out of here a couple months per year and they rent their place. So, it’s a really hard dance.

Right now, these little houses or one-bedroom places are saturating the [vacation rental] market and nobody’s going to rent them. If people wanted to rent one-bedrooms, they’d go to a hotel. And so, eventually, these small places will sell and become long-term housing again. It’s just going to be cyclical.

I also don’t think it’s going to be forever that somebody is going to have an Airbnb out on, say, River Road that’s not on the river. I used to live on the Boardman River, and I’d pass this house that is not on the river, and it’s just a dumpy little house, but it’s a vacation rental now. Who wants to stay there? What experience are you going to get there? At some point, if we have more opportunities with the resorts doing more in the vacation rental realm, then STR business will probably just go more toward that, and then also to the bigger homes like I’ve always done. Because those are the types of vacation rentals people want.

Tkach: What’s often misrepresented, as Teresa is pointing out, is there’s not a one-to-one correlation between an STR and a lack of affordable housing. The lack of affordable housing is literally the pandemic of our day right now. It is the challenge internationally. There’s not enough houses for people; that’s just reality. So, to correlate it back to STRs is probably an unfair statement in general, considering you’ve got a housing issue in Grand Rapids and other places, and they don’t have the STRs we do.

Once you look at how many STRs are in Grand Traverse County, it’s probably 3-5% of our total housing stock, and a lot of those aren’t the affordable homes or the houses people are going to use for long-term rentals. It’s the $3 million houses, right Teresa? I think the problem is that long-housing that would maybe more accessible and affordable for a typical worker hasn’t been incentivized in our market by any municipalities. We’ve let developers develop a condo that immediately turns into STRs.

Since 1973, we at Long Lake Marina have been earning the trust of northwest Michigan and beyond.

Bryant: Well, what’s a builder going to make his money off? It all goes back to that.

Tkach: Exactly. If I’m a builder, why would I build affordable housing when I can make twice building the same thing for a different market of buyer?

Woods: Well, and they can sell those one-bedrooms faster and easier. They slap them up and say, ‘Woah, Airbnb! VRBO! Whatever!’ And people are like, ‘Oh, I can afford that!’ And so then they buy it – but trying to afford to keep it is going to be a toughie.

Tkach: At certain times of year, we have far more supply than demand –in hotel rooms, in STRs, all of it. We know there’s demand in the summertime. People show up in July and August; it’s a foregone conclusion. But what happens the other 10 months out of the year? Everyone’s already talking about slim margins. Now, looking at the pie, the pieces are getting smaller. There’s more inventory, but demand isn’t necessarily growing.

Bryant: That’s what I’ve wondered. There are 800 new hotel rooms coming to town right now. Sorry, but Trevor, what data are they getting that can warrant them to build these mega-hotels and support the business year-round? What data do they have that

says, ‘I’m going to build a $20 million hotel, and I’m going to make money off of that?’ Do they not look at the labor supply? Are they not looking at the marketing and the demographics of how occupancy works in this area – about how they’re likely to get 52% occupancy? Is that enough to cover their debt? Is that a good investment?

Parker: I think we’re getting close to killing the goose that lays the golden egg.

have an attraction. They don’t have golf. They don’t have skiing. They don’t have a beach; they’re on the other side of the street, and there’s no catwalk unless they go all the way down the State Park.

Tkach: We have pushed our shoulder seasons, and we know that does help hotels keep people more fully employed, or at least help some businesses break even or not go into an operational deficit as early as they used to. I think we’ve done

“With the leisure traveler, the booking window has gotten much shorter than it was the last couple years. And the group demand – specifically, the corporate groups – is very high.”

One of the questions I had actually was ‘Are we getting oversaturated in terms of hotels?’ And it sounds like the answer in the room is yes.

Bryant: We’re pushing that level. I think that oftentimes, those developers aren’t looking at the STRs that are part of the occupancy. When you look at that, and the total number rooms that are available out there, it’s going to be challenging. I feel for them. I really do. Because [these hotels that are under construction] don’t

a good job, collectively, of telling a yearround story. And I think having partners like Crystal Mountain, where we can tell the ski story, or being able to talk about wineries and all these other great things that are happening in four seasons, has helped. You can see it: It’s visibly changed the demand patterns [for local tourism]. But there’s a good chance, because there is a labor shortage, and because maybe there isn’t enough demand to keep everyone solvent, that the strong will survive. And it’ll be a situation where the

new properties being built won’t necessarily be the ones that go out of business. Instead, they may force others into a more difficult position. I think that’s what you’ll start to see. We’ve already seen one hotel within the past three years flip half of its units into being apartments. You may see more of that happening. You may see more conversion of hotels into what would be, I guess, our new workforce housing option, or senior living.

If you had to predict what summer 2023 will look like in one word or phrase, what would it be? What are you predicting for the upcoming busy season?

Melcher: Optimistic.

Bryant: One word? I think that the word would be ‘normal.’

Tkach: I’m at a loss. One word…well, as I’ve pointed out, from our perspective, there’s more inventory, so I think the word is ‘best.’ We’re going to have the best year ever. I mean, we just are. It might not mean everyone in the room is going to have the best year ever, but TCT collectively will.

Woods: We’re a little down. Which is the first time in I-can’t-rememberhow-long – probably since the last time everybody was screaming ‘recession.’ Or maybe September 11. We’re usually

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booked so far out in advance that I can say, ‘Hey, guess we’re going to have a banner year.’ We’re not like crazy down, but we are more on cue with 2021 than we were with 2022, which was just rockin’. It’ll still be a good year if we turn out like 2021. But I’d sure like to have 2022 again.

Parker: Well, we are preparing now for a busy summer. We have amazing group business on the books, and our weekends take care of themselves. So, it’s really about preparing the staff. Preparing the staff to pivot; inspiring them, training them, coaching them; everything we can do to prepare them. Because we need them.

If you had to make one big prediction about how local tourism and hospitality will evolve in the next five years, what would it be?

Bryant: Growth.

Melcher: Same thing, continued growth. I think the pandemic brought a lot of people to Northern Michigan, including those that hadn’t visited us before or had not visited us in a long time. And I think that interest in being up north is going to continue to be strong.

Tkach: I’d say it’s collaboration. I think TCT has always extended the olive branch.

We want to be partners with the community. We want to be partners with all sectors. I think a lot of times, sadly, tourism has been a four-letter word. It’s easy to vilify tourism. But the reality is it’s a big part of the economy. And it’s also the calling card for all the other great things that are going to happen in this area. A lot of the investments in natural resources and other amenities that locals take advantage of, that was brought about because of a strong tourism economy. So, we need to protect the tourism economy and help it along. And it only works if other industries collaborate with us. We work really closely with the airport. That’s an obvious correlation, but it’s such a huge benefit to the locals to have that here. I don’t know if people always recognize how important it is that they get to fly other places in the world because we’re such a popular destination to fly to. And there’s other things. Healthcare: We’re talking with Munson about how we can be partners with them in helping them keep their staffing high, and keep those high-skilled workers here to make sure that we all have that service. And education: How are we going to keep these schools strong and make sure we have educators for the workforce that we’re bringing to town?

Ultimately, all of us are in this together, so my vision is collaboration. That’s the only way this is really going to work for all of us in five years.

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Retail Legends Talk Shop

Long-time store owners weigh in on the ups and downs of generational retail

By Ross Boissoneau

Making it in retail is tough. Surviving and thriving for decades is a testament to persistence and changing with the times.

Long-time store owners and managers share their history, their challenges, what the future may hold and why they do what they do. Whether purveyors of clothing, appliances, sporting goods or a little bit of everything, they are all looking forward, while taking a fond backward glance.

Owens purchased the store from his father in 2001, marking the third generation at Max’s.

The tires were discarded in the ‘80s to make way for television sets and other electronics. Those too eventually left the building.

“They didn’t fit our niche,” Owens said. Today the store’s niche includes a number of familiar brands, such as

GE, Frigidaire, Wolf and Weber, for kitchen and home. Owens said the grills, washers, dryers, ranges, refrigerators, freezers and hoods have changed, some more slowly than others. For years, even with their improvements, washing machines “looked like your grandma had in the basement. Now they’re front loading and more efficient.”

Another change he’s noticed is the quality of appliances has changed.

“Appliances are not designed to last

as long. Motors are smaller and there’s more plastic,” he said. “They’re not designed to be repaired, but replaced.”

The pandemic increased demand as people eschewed dining out for staying home and sales were brisk. Add to that the burgeoning choices, in terms of style, size and color, and Owens had to get another warehouse.

Today, while demand has leveled off, it’s still busy, and the supply chain problems continue to make some appliances difficult to get, especially

those on the higher end.

He sees demand for both sales and service remaining strong in the years to come. Owens is confident that as long as Max’s continues to deliver the customer service that’s been its strength, it will continue to be successful. He’s just hopeful he will continue to have enough employees to meet demand.

“We’re always looking for good help,” Owens said about sales, repair and especially delivery.

Jeff Owens’ grandfather opened Max’s in 1950 as a tire shop and auto repair.

MAX’S SERVICE, Traverse City

CITY BIKE SHOP, Traverse City

Old store, new(ish) owners: Hunter and Maggie Gardner purchased the cycle shop, which first opened in 1955, in April of 2021.

“I’m still pretty green,” said Hunter, an avid bicycler who was exposed to bike shops as an undergrad at the University of Colorado in Boulder.

Now, after moving to Traverse City (where he was born, though he grew up in Indiana) and working at TentCraft and as an environmental consultant, he’s back into bikes. He works in both sales and service, while Maggie keeps a close eye on customer service while working part-time as an RN.

While City Bike Shop’s history dates back nearly 70 years, it’s been joined by many others over the years. It’s also moved locations, most recently from Union Street to its present site on Eighth Street – right across the street from Brick Wheels and McClain Cycle and Fitness (which also have welcomed new owners in the past two years). Gardner said the working relationship with his neighbors is great, and the situation benefits customers.

“It’s the only place in the country with three bike shops within 50 yards,” he said. “It’s great for consumers.”

He added that bicyclists tend to have strong brand loyalties, both with bike manufacturers and with their retailers.

“It’s tough to earn business from someone who identifies with another brand,” he said. “Everyone finds their own niche.”

He jumped back into the bike business while supply lines were still being impacted, but at the same time outdoor activities were energized.

“I knew I was entering the industry at a tumultuous time,” he said.

One of his first tasks, beyond dealing with supply and demand, was to modernize aspects of the business, improving internal and external communications via texting and investing in more tech tools for inventory management.

He takes issue with those who think all retail is going to be relegated to online sales.

“Certain things are safe from being fully cannibalized,” he said, pointing to service as a key to survival. That loyalty he mentioned comes into play too, as does being able to select a bike and ride out with it.

“A bike is not just a commodity,” he said. “Bike people are passionate. They want to touch and feel the product.”

He knows customers appreciate help finding the right bike for their needs, fitting it to them and providing necessary service. So despite all the challenges, he’s confident that dedicated bike retailers, including City Bike Shop, will continue to thrive.

OLD MISSION GENERAL STORE, Traverse City

Owning a store for 24 years is an accomplishment, but for Jim and Marcy Richards, that only represents 13% of the lifetime of their Old Mission General Store. The store dates back to 1839, only four years after Michigan had become a state. Jim is proud to carry on the legacy of those who came before him.

“It was the first post office between Muskegon and Mackinac Island,” said Jim, admittedly a huge history buff.

The Richards are distantly related to the Lardie family and took the store over from them in 1998, carrying on the legacy and mix of products in the store.

He and Marcy met in Hollywood, where he was active in theater, radio, television and movies. His performing background comes through in person and on the phone, as he loves to regale customers with tales and trivia about the store’s history.

“It’s decked out like the 1800s,” he said. “We represent all the periods of the store.” Richards noted the store was also open during the Spanish Flu pandemic of 1918, and the yellow fever one before that. When the pandemic hit, it was regarded as an essential business and was able to stay open.

“Essential for pickles, pasties and pizza,” he said proudly.

As to the future, he said he has no expectations.

“I take it one day at a time,” he said. “We love the store, spend a lot of time here.” One hope is for some additional help to run it, especially as he is recovering from heart surgery.

“Business is good. We hope for more (employees) this summer,” he said. “Like everybody else we feel it – there’s not enough help.”

RETAIL & HOSPITALITY

them and providing necessary service. So despite all the challenges, he’s confident that dedicated bike retailers, including City Bike Shop, will continue to thrive.

OLD MISSION GENERAL STORE, Traverse City

Owning a store for 24 years is an accomplishment, but for Jim and Marcy Richards, that only represents 13% of the lifetime of their Old Mission General Store. The store dates back to 1839, only four years after Michigan had become a state. Jim is proud to carry on the legacy of those who came before him.

“It was the first post office between Muskegon and Mackinac Island,” said Jim, admittedly a huge history buff.

The Richards are distantly related to the Lardie family and took the store over from them in 1998, carrying on the legacy and mix of products in the store.

He and Marcy met in Hollywood, where he was active in theater, radio, television and movies. His performing background comes through in person and on the phone, as he loves to regale customers with tales and trivia about the store’s history.

“It’s decked out like the 1800s,” he said. “We represent all the periods of the store.” Richards noted the store was also open during the Spanish Flu pandemic of 1918, and the yellow fever one before that. When the pandemic hit, it was regarded as an essential business and was able to stay open.

“Essential for pickles, pasties and pizza,” he said proudly.

As to the future, he said he has no expectations.

“I take it one day at a time,” he said. “We love the store, spend a lot of time here.”

One hope is for some additional help to run it, especially as he is recovering from heart surgery.

“Business is good. We hope for more (employees) this summer,” he said. “Like everybody else we feel it – there’s not enough help.”

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Kennedy MacGirr is proud to carry on a family tradition. She took over the operation of Hull’s of Frankfort in 2019, making her the fourth generation at the women’s clothing store.

Originally opened as a laundromat and dry cleaners by her great-grandparents Roland and Harriet Hull in 1956, it soon began to sell women’s clothing. Over the years, as the cleaning business dissipated, the clothing lines expanded, and the shop’s reputation grew. Roland and Harriet’s daughter-in-law Maren Hull – Mac Girr’s maternal grandmother – took over the business in the late 1980s, and her daughter Mariah purchased and ran the store in the 2000s.

MacGirr, Mariah’s daughter, worked at the store growing up, and took over when her mother passed away in late 2019. So she was dealing with the aftermath of her mom’s death and running a business when the pandemic hit.

“It actually gave me time to get myself started,” she said of shuttering the store, then reopening to conform with the need for masking and sterilizing most everything, even trying to determine whether it was safe to operate the fitting rooms.

“It was quite a time to take over,” she said. “It was an adjust ment for everyone.”

Since then both she and the business have settled into a more regular routine. She relies on her familiarity with the store and the shoppers, as the clientele and her offerings have changed over the years. Things have become more casual, and she’s also expanded the size range of the clothing, from size 0 to 20 and extra-small to 3X.

“Clothing got more comfy,” she said. “We try to find more everyday (clothing), carry a wider variety than ever before.”

She says shopping in a store still offers advantages over doing so online. “There’s instant gratification, (purchasing) on the spot.”

With its antique displays, wood floors and other reminders of days past, Bahle’s of Suttons Bay looks just like it did all those years ago.

Except not really: While the store has been in existence for nearly 150 years, in truth, the store never resembled this iteration until a renovation.

The setting and decor that suggest the past were the brainchild of manager Stacy Sheren. The furnishings and artifacts, such as orchard ladders used as displays and the original post office fixtures in the back of the store, are props meant to recall the days when Lars “L.E.” Bahle opened the store in 1876 as the prototypical general store. Back then, it sold most everything, from clothing and dry goods to hardware and other staples of pre-20th century life.

Fast forward 100-plus years and four generations, and the store now stocks men’s and women’s clothing by Barbour, Patagonia, Harley of Scotland and other upscale brands. Sheren said that as the town morphed to a tourist destination, so too did its clientele change, leading to the emphasis on a mix of classic clothing and sportswear.

The store is still owned by the Bahle family, with Chris Bahle handling the finance end of things. His siblings Rich, Lois, Karl and Bob work “behind the scenes” as Sheren put it, including various philanthropic endeavors. The fifth generation is represented by Rich’s son Erik, who is active in the property management side of the family’s business.

Sheren said like many other retail operations that survived the pandemic, the rebound brought an influx of business.

“People wanted to get out,” she said.

Now the store has largely made it through the supply chain issues, and Sheren said its reputation for customer service positions it well for the future.

“We try to remember people’s names, provide a pleasant shopping experience and go the extra mile,” she said. “It’s the old-school tradition, being more personal.”

One thing she’s excited about is the use of technology to further that service approach.

“There’s really cool new tech for dress shirts. An iPad measures 200 points in about 30 seconds. Then customers can pick their collar, buttons, cuffs, and get it in about two weeks,” she said about the technology, which costs only about $30 more than an off-the-shelf shirt.

Paulus

BAHLE’S, Suttons Bay

Kennedy MacGirr is proud to carry on a family tradition. She took over the operation of Hull’s of Frankfort in 2019, making her the fourth generation at the women’s clothing store.

Originally opened as a laundromat and dry cleaners by her great-grandparents Roland and Harriet Hull in 1956, it soon began to sell women’s clothing. Over the years, as the cleaning business dissipated, the clothing lines expanded, and the shop’s reputation grew. Roland and Harriet’s daughter-in-law Maren Hull – MacGirr’s maternal grandmother – took over the business in the late 1980s, and her daughter Mariah purchased and ran the store in the 2000s.

MacGirr, Mariah’s daughter, worked at the store growing up, and took over when her mother passed away in late 2019. So she was dealing with the aftermath of her mom’s death and running a business when the pandemic hit.

“It actually gave me time to get myself started,” she said of shuttering the store, then reopening to conform with the need for masking and sterilizing most everything, even trying to determine whether it was safe to operate the fitting rooms.

“It was quite a time to take over,” she said. “It was an adjustment for everyone.”

Since then both she and the business have settled into a more regular routine. She relies on her familiarity with the store and the shoppers, as the clientele and her offerings have changed over the years. Things have become more casual, and she’s also expanded the size range of the clothing, from size 0 to 20 and extra-small to 3X.

“Clothing got more comfy,” she said. “We try to find more everyday (clothing), carry a wider variety than ever before.”

She says shopping in a store still offers advantages over doing so online. “There’s instant gratification, (purchasing) on the spot.”

get it in about two weeks,” she said about the technology, which costs only about $30 more than an off-the-shelf shirt.

TOY HARBOR, Traverse City

DON ORR SKI & BEACH SHOP, Traverse City

In 1954, Don Orr Ski Shop debuted in Traverse City. After a couple moves early on it’s still here, having landed across from East Bay and Traverse City State Park Beach in 1960. That’s where you’ll find owner Jeff Swanson and his crew, and it remains one of the area’s most popular destinations for ski equipment and service.

The industry has changed over the years as new materials and methodologies have been introduced, from clothing to bindings to skis and helmets. Swanson said he and the staff have always been dedicated to growing with the times and providing customers with what they needed.

“Skiers are a unique group of people,” he said, noting their loyalty to those who take care of them and their equipment.

He said that is the edge that has kept the company in business all these years.

“One of the foundations is service. That’s why we’re still here, service and customer service,” he said.

Swanson began working there in 1982, and three decades on he bought the business from Bonnie Orr. Its central focus has always been and will always be taking care of those hitting the slopes, but the store added beachwear and summer necessities for its off season. In the summer, that keeps him and three others busy, while the winter staff triples in size.

“I’ve been blessed with very little turnover,” he said.

Despite moving to Traverse City in fifth grade and then reveling in being able to go downtown by herself as she grew up, Amanda Walton wasn’t a customer at Toy Harbor until she had kids. Now she has a vested interest in the store, having purchased it from her mother-in-law.

Nancy Walton opened the store in 1984. Back then a woman typically couldn’t get a loan by herself.

“It was difficult as a female business owner,” Amanda said. Attitudes and subsequent business practices have changed in the nearly four decades since, as has the downtown. Yet the store has remained an iconic presence.

“The sign is a staple,” said Walton, who took over after serving as manager for 10 years.

She said the store’s mix includes creative and classic toys, while she’s also tried to keep up with trends. That diversity has helped it survive potential downturns posed by the presence of malls and Amazon.

“It was a challenge when the mall opened and downtown was empty,” she said. Another came with the onset of COVID-19. With the store and schools closed, Walton adapted, creating Home Quarantine Kits to keep kids occupied and engaged, with puzzles, art supplies, jump-ropes and other items that were educational and fun.

“It was tough for parents,” she said.

To help those families looking to limit exposure, she even began delivering the kits.

With the pandemic mostly in the rear-view mirror, Walton remains cognizant of change and how it impacts her business. One she’s noticed over the years is that the seasonal nature of business has lessened.

“Now January and February are kind of quiet, but we have visitors yearround,” she said.

She is also developing a website to allow for online shopping for those who love the store but aren’t able to visit in-person.

She said the store just underwent a facelift, necessitated by a leak, providing a refreshed experience for customers.

“We still want people to come downtown,” she said.

While the vast majority of his business is done during the ski season, Swanson said the rush of business following the pandemic nearly emptied the store of its summer inventory – and the same was true for the following winter.

“In June it was like the floodgates had opened,” he said. “We never saw that amount of business in the summer...ever.”

Then it got even busier for the ski season. Everybody started enjoying the outdoors, and in ‘20, ‘21 and ‘22 Swanson reports he had the “best” three years.

Part of the reason for the success those three years was that most of his manufacturers are in Europe, not Asia, so there wasn’t as much of a bottleneck in the supply chain. But there are challenges there as well.

“Cross country took a bit of a hit because … two of the largest factories in the world (for that equipment) are in Ukraine,” Swanson said.

He admitted he is worried about another challenge facing the entire industry: the specter of climate change.

“The last three years we have had horrible seasons in terms of snow,” he said.

Even when it’s been cold enough for the resorts and ski hills to make snow, it sometimes hasn’t lasted.

“We had three storms this year with more than a foot of snow, and a week later it was 50 degrees,” Swanson said.

RETAIL & HOSPITALITY

In 1954, Don Orr Ski Shop debuted in Traverse City. After a couple moves early on it’s still here, having landed across from East Bay and Traverse City State Park Beach in 1960.

That’s where you’ll find owner Jeff Swanson and his crew, and it remains one of the area’s most popular destinations for ski equipment and service.

The industry has changed over the years as new materials and methodologies have been introduced, from clothing to bindings to skis and helmets. Swanson said he and the staff have always been dedicated to growing with the times and providing customers with what they needed.

“Skiers are a unique group of people,” he said, noting their loyalty to those who take care of them and their equipment.

He said that is the edge that has kept the company in business all these years.

“One of the foundations is service. That’s why we’re still here, service and customer service,” he said.

Swanson began working there in 1982, and three decades on he bought the business from Bonnie Orr. Its central focus has always been and will always be taking care of those hitting the slopes, but the store added beachwear and summer necessities for its off season. In the summer, that keeps him and three others busy, while the winter staff triples in size.

“I’ve been blessed with very little turnover,” he said.

While the vast majority of his business is done during the ski season, Swanson said the rush of business following the pandemic nearly emptied the store of its summer inventory – and the same was true for the following winter.

“In June it was like the floodgates had opened,” he said. “We never saw that amount of business in the summer...ever.”

Then it got even busier for the ski season. Everybody started enjoying the outdoors, and in ‘20, ‘21 and ‘22 Swanson reports he had the “best” three years.

Part of the reason for the success those three years was that most of his manufacturers are in Europe, not Asia, so there wasn’t as much of a bottleneck in the supply chain. But there are challenges there as well.

“Cross country took a bit of a hit because … two of the largest factories in the world (for that equipment) are in Ukraine,” Swanson said.

He admitted he is worried about another challenge facing the entire industry: the specter of climate change.

“The last three years we have had horrible seasons in terms of snow,” he said.

Even when it’s been cold enough for the resorts and ski hills to make snow, it sometimes hasn’t lasted.

“We had three storms this year with more than a foot of snow, and a week later it was 50 degrees,” Swanson said.

DON ORR SKI & BEACH SHOP, Traverse City

From Flooring to Pets...Naturally

Kathy and Tim Hyland broaden their entrepreneurial scope

By Ross Boissoneau

What do flooring, metalsmithing/design and pet food have in common?

If you answered Kathy and Tim Hyland, you’re right. They are the owners and moving forces behind Bayview Flooring, Bayview Displays and Pets Naturally.

It all started 40 years ago when a young Tim Hyland got his start in the flooring business. Ever the entrepreneur, he struck out on his own just two years later, at age 26.

“I found a building and went to lease the space, but I had no money,” Hyland said.

Knowing the building had been vacant for three years, he made a deal with the owner: He’d lease the space for 90 days rent-free, but would cover the utilities. So Cash and Carry Flooring was born.

Still, with two kids and one on the way, he said the choice to jump in was a leap of faith ... sort of.

“I had a following from the other store,” Hyland recalled.

He was able to secure his first big job at the Reef Petroleum building on West Grand Traverse Bay, today known as Centerpointe. That enabled Cash and Carry Flooring to expand, eventually with locations in Elk Rapids, Bay Harbor, Gaylord and Traverse City.

He sold the Gaylord location to the store manager and the others when they received what he called “an offer they couldn’t re-

fuse.” That was in 2004, including signing a seven-year non-compete clause.

The Hylands moved to Florida, where they flipped some houses and Tim worked as a handyman on a barrier island.

But after the seven years had passed, they jumped back in, with a new name: Bay View Flooring. The 18,000 squarefoot showroom on Division next to Culver’s, backed by a 25,000 square-foot warehouse, has been a huge success. Tim

led to numerous five-star reviews online, which they emphasized in their marketing. According to the industry journal Floor Focus, the store is in the top 70 dealers nationwide, and Bay View Flooring has also been named a Top Ten Small Business by the Traverse City Area Chamber of Commerce and one of 50 Companies to Watch by Michigan Celebrates Small Business.

As Bay View Flooring was experienc-

impinging on the floor space. It was so successful that he found other stores wanted their own. So he filed patents on the design for what he dubbed a profit center; one was granted and two others are pending. Today Bay View Displays is a separate company with three full-time employees, with its first display show this year in Las Vegas.

“It’s my baby. I’m not going to get rich, but it’s a way to compete,” Tim said.

Currently Bay View Flooring has 35 employees, and Hyland knows getting enough help has been a challenge for virtually every industry. So he’s working to make sure they have enough help, particularly for installation.

About 10 years ago, he started a partnership with TBA (now Northwest Education Services), which lead to high school graduates apprenticing with the company.

said they now do more volume out of the one store than they did out of five.

He believes part of the success stems from the pandemic. With people spending more time at home, all aspects of home improvement saw an uptick in business.

“The manager at Sherwin Williams said they were setting records on people painting. We got slammed with customers, and were up 25% every year,” he said.

Their success wasn’t simply due to more people wanting to upgrade their homes. He said the quality of their work

ing success, Tim saw a need for a way to differentiate the store from its competitors. One way to do that was to find a way to display the flooring better than they did, allowing customers to see and feel it while not taking up too much valuable floor space. Thus was born Bay View Displays.

“I wanted to show it better than the big box stores,” he said.

He worked with a friend who is a metalsmith and made a pallet topper that showcased the product without

“The average age of a floor installer is 58,” he said. “We were one of the first in the country to get flooring into school building trades.”

While flooring may be all Bay View Flooring does, it’s not all the Hylands do. Pets Naturally came about when their own dog got sick.

“Our dog got sick, and when we changed its diet, she got better. We thought it would be cool to have a health food pet store, like Oryana,” said Tim.

They owned a building on South Air-

Pets Naturally was named one of 50 Small Companies to Watch by Michigan Celebrates Small Business. Now it is perhaps primed for its biggest expansion, entering the world of franchising.

port Road and when the tenant moved out, they saw an opportunity for another adventure. Pets Naturally is Kathy’s (fur) baby.

“It grew out of my love for dogs, especially,” she said.

When their Boston Terrier Lucy started losing fur while battling an immune system disorder, she began researching healthy food products. They ended up buying food online as at the time there was no place available locally to purchase

So much so that they expanded the store multiple times, including a plan to add another 5,000 square feet last month.

“We’ll be able to add additional food lines,” she said, stressing their quality and affordability.

Along the way, the Hylands were approached by Karry and Chris Barolo. They had opened the Dog Bakery in 2004, pioneering the creation of

has also reached into the world of pocket

Like Bay View Flooring, Pets Naturally has also received accolades. It was named one of 50 Small Companies to Watch by Michigan Celebrates Small Business.

Now it is primed for perhaps its biggest expansion, entering the world of franchising. Pets Naturally opened its second location, with the Grand Rapids store opening in January of this year.

Kathy said the idea first took root before the pandemic, but with the subsequent boom at Bay View Flooring, she put it on the back burner.

“Bay View was taking off and I was there a lot,” she said. “The growth was all-consuming.”

But when the person she’d previously spoken with in Grand Rapids reconnect-

ed with her and told her he had a spot in mind that was four times the size of the prototype, they began discussing it in earnest. It opened in Cascade in January of this year.

“We feel it’s such a good concept. You can buy stuff online, but Pets Naturally is a destination,” she said.

That said, they do have an online store for those customers who aren’t near Traverse City or Grand Rapids. And Kathy makes sure the staff at both stores is knowledgeable about the stores’ lines of supplements and how nutrition affects a pet’s health.

“I’m excited to see what happens,” she said, noting future plans include locations on the west side of the state and eventually elsewhere across the Midwest.

Vegan – With a Shot of Tequila

Four local food/bev trends

By Craig Manning

Craft beer, food trucks and a growing focus on global cuisine. Over the past decade, these are some of the trends that have dominated – and transformed – Traverse City’s food and beverage scene. Now the buzz is all about non-alcoholic drinks, private chefs, vegan food and tequila.

1. The non-alcoholic beverage segment continues to grow

As Newton’s third law tells us, for every action, there is an equal and opposite reaction. So, perhaps it’s no surprise that, after Traverse City spent more than a decade building up its craft alcohol scene – from beer to wine to spirits and cocktails – the reaction would be an uptick in the popularity of non-alcoholic (NA) beverages.

Where NA options used to consist of soft drinks and not much more, many bars and restaurants have diversified their drink menus to include a broader slate of elevated NA choices.

Rare Bird Brewpub has a whole section of its drink menu devoted to NA, with a dozen or so NA beers to choose from.

Last year, Short’s Brewing Company in Bellaire partnered with bluegrass star Bil-

ly Strings to release “Thirst Mutilator,” an NA sparkling hop water; Beards Brewery in Petoskey also makes a similar product, called Michigan Hop Water, which is widely available throughout the region.

Right Brain Brewery has brewed multiple NA beers, including an NA version of its signature CEO Stout.

Restaurants like Trattoria Stella have made a commitment to offering a higher class of mocktail.

work by founders Roman Albaugh and Loghan Call, Audacia is nearly ready for its closeup.

“Our journey with bringing this concept to market has continued and finally cleared some key regulatory shelf-stable hurdles,” Call told the TCBN . “The goal is absolutely to start entering establishments by or within the month of June.”

Going forward, Call noted that the business born as Audacia Elixirs will

When Audacia officially launches, the company’s products will go into a variety of local restaurants and bars, but will also be available for purchase on a direct-to-consumer basis. As has been planned all along, the business will launch with three core elixir products: Albedo, a citrus-based spirit with notes of lemon, grapefruit, fenugreek, juniper and fennel; Radici, which gets its earthy flavor profile from dandelion, chicory, astragalus and burdock roots, plus touches of cacao, French oak and cinnamon; and Baca, a floral spirit derived from hibiscus, rose, linden and schisandra berry.

The NA trend could get a shot in the arm this summer with the impending launch of Audacia Elixirs into the local market. Audacia is a startup with the mission of bringing new levels of sophistication and beauty to the NA scene by introducing what it calls “elixir cocktails and spirits.”

Buzz for Audacia Elixirs and its products has been building in Traverse City since the business launched in 2021. Now, after years of behind-the-scenes

be rebranded as just Audacia, with the tagline of “Handcrafted Elixirs.” The rebrand, he said, was motivated in part by the growing popularity of NA beverages – and by his and Albaugh’s desire to set themselves apart.

“We’ve kept a close eye on everyone else, especially within the NA spirits space ... realizing that our production method and our commitment to using whole ingredients ... really warrants us to be at the higher end of the market,” he said.

While Call acknowledged that it’s been a long journey to bring Audacia to market, he said that he and Albaugh are even more excited to launch the product now, given how NA beverages have continued to pick up steam in the past two years.

“I think the notion overall, actually, is that it’s less of a trend and more of a here-to-stay thing that will continue to blossom with creativity,” he said.

2. Meal prep services emerge from the pandemic era

Nevada Yetter, a Kingsley-based chef, has been working in hospitality since she was 18 years old. Over the years, she’s

“It’s a curated service that people seem to be looking for from me.”

– Michelle O’Daniels, owner, Sense of Place TC

A cocktail by Audacia

Nevada Yetter, Fresh Life Meal Prep Service

held virtually every type of restaurant job from bartender to general manager.

For a long time, Yetter’s dream was to open a restaurant of her own. Eventually, she enrolled in culinary school at Northwestern Michigan College, both to hone her skills in the kitchen and to develop the business acumen that would allow her to pursue that future career path.

But the pandemic caused her to rethink her path.

“I needed to take what I liked about the hospitality business and put it into a different category – something that couldn’t just be shut down if this happened again, but that would also allow me to give people the healthy food that they needed, no matter what,” she said.

Yetter’s back-to-the-drawing board brainstorming session, luckily, came at a serendipitous time. She and her husband happened to have a vacant outbuilding on their Kingsley farm that they were in

All the work came to a head in December, when Yetter officially launched her business: Fresh Life Meal Prep Service, which offers balanced affordable meals to suit a variety of different dietary preferences.

where she’ll be doing meal prep work for regular clients during the day and private chef engagements in the evening.

Yetter isn’t the only culinary entrepreneur in northern Michigan who is bypassing the traditional restaurant model.

the process of converting to an Airbnb.

“So we halted that project, flipped it around, and turned it into a commercial kitchen space,” she said.

The early months of the company were all about getting the word out, but now, things are picking up: Yetter said she’s expecting a busy summer – one

For Michelle O’Daniels, that demand has been something of a surprise. A 22-year hospitality veteran who did her culinary schooling and wine sommelier training out in California, O’Daniels relocated to Interlochen last August and saw that the local at-home meal market in northern Michigan was becoming increasingly popular.

Though O’Daniels had spent most of her career working in restaurants and for big catering companies, she saw an

“There are a lot of statistics out there, in terms of how many people are drinking less or not at all, and as a result, (non-alcoholic) is just continuing to climb.”

– Loghan Call, co-founder, Audacia

Vietnamese street food by Fresh Life Prep Service

opportunity in the meal prep space to control her own narrative and to start small and grow bigger.

The growth outpaced her expectations, prompting her to switch her licensing from personal chef to a full catering operation she named Sense of Place TC.

Along with that shift, the chef recently signed a lease on a commercial kitchen, which will allow her to scale up her operation quickly.

“That all happened faster than I anticipated, and all because of the response on the market,” she said.

For Yetter, a lot of that local demand comes from customers who want to eat better and stay healthy but aren’t sure how to do it themselves. From seniors looking to lower their cholesterol or lose weight because they’re having knee problems or heart trouble, to cancer patients who are looking for healthier whole foods to help their body, Yetter says a lot of her clientele are interested in health first and foremost. A meal prep service, she said, is an easy and affordable way for those clients to stick to diets that revolve around quality ingredients and smart portions.

“The price of the food is literally comparable to something like fast food,” she said. “I have a 16-year-old son, and if I run through Taco Bell, it’s costing me $12 to get him something for lunch. Our meals, you can get one as low as $7 and I think the most expensive is $15 or $16. So, it’s quality meals that people can grab and go.”

For O’Daniels, the fact that she’s also a sommelier with a knack for wine pairings has led to slightly different gigs. She’s currently collaborating with Folklore Winery in Charlevoix to plot a series of wine dinners, and she’s also put together a busy summer of private chef bookings – particularly as part of Traverse City’s booming bachelorette party industry.

“I’m doing bachelorette parties of like 18 people, where they’re going to come home from the winery and I’ll be at the Airbnb they rented,” she said.

She creates a restaurant-style experi-

ence for them, with appetizers on the table when they arrive complete with a two-course, family-style meal she walks them through.

“It’s a curated service that people seem to be looking for from me,” O’Daniels added. “And they do seem to be really responding to the fact that I can tailor the food to the wine menu, or vice versa.”

3. Plant-based options make northern Michigan a more vegan-friendly place to be

Just as NA beverage options used to be hard to find, there was a time when vegan-friendly menu items were few and far between at local restaurants. Beyond the salad menu, plant-based meal options weren’t a guarantee.

These days, you’re not only more likely to find a few vegan options on most menus, but there are also local restaurants that have made plant-based a mantra.

“We knew from the beginning the we wanted to strive to provide vegetarian options made with locally sourced ingredients,” said Rick Schmitt, co-owner of Stormcloud Brewing Company in Frankfort. “And right around that time, there was a bit of a movement where restaurants like ours were seeing more and more requests for true vegan alternatives.”

That demand has led Stormcloud to devote a sizable portion of its menu to vegan-friendly options, like a sandwich built around artichokes, mushrooms, and tomatoes; or a grain bowl that combines kale, red rice, red quinoa, black barley, edamame, cremini mushrooms, sesame seeds, almonds, bell pepper, mixed greens, and tahini dressing.

Stormcloud is far from the only local establishment devoting space to plantbased food. When it opened in 2021, Stone Hound Brewing Company in Acme teamed up with Rad.ish Street Food – a plant-based kitchen then operating out of The Coin Slot in downtown Traverse City – to develop a menu of vegan tacos, burritos, burgers and more.

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last fall to step away from the food business and put Rad.ish on pause, Stone Hound founder and owner Brent Faber (a vegetarian himself) decided to take kitchen operations in house but keep the plant-based approach.

“People said we were crazy to have a completely plant-based kitchen in our taproom and I would simply respond, ‘Try it,’” Faber wrote on social media after Rad.ish announced its plans to close. “Most who did came back for more.”

Now, that normalization of vegan food and plant-based recipes is taking root all over northern Michigan. At The Good Bowl, it’s possible to make virtually any recipe vegan by substituting tofu for meat. Milk & Honey makes vegan ice cream. The menu at Taproot Cider House includes options like a black bean burger and the Yogi, a bowl that features roasted sweet potato, house green shawarma and toum, masala chickpeas, and organic baby kale over brown rice. Farm Club builds its menu around fresh farm-grown product. And Zest Plant-Based Kitchen is precisely what its name promises.

4. The national tequila trend comes to Traverse City?

At this point, northern Michigan’s distilleries have tried their hand – and excelled above all expectations – in making just about every type of spirit you could think of.

From the massive growth of Traverse City Whiskey Co. to the experiments by Mammoth Distilling to revive a Prohibition-era strain of rye that only grows on South Manitou Island, whiskey has become a prime local export, and it’s not the only spirit to attain that status.

Indeed, local distilleries have gotten ambitious and creative in crafting virtually every type of spirit. There is Thompsonville’s Iron Fish Distillery, which recently introduced both Whirligig, a gin infused with maple syrup; and Soft Parade vodka, a fruit-infused partnership with Short’s Brewing Company. Or there’s Lake Leelanau’s Northern

Latitudes Distilling, which does a lot of work around flavored liqueurs. Ethanology in Elk Rapids even makes a spirit called Mel, which is distilled from pure northern Michigan honey.

The spirit that northern Michigan hasn’t seen a lot of yet is tequila – something that could change, thanks to shifting nationwide trends.

According to IWSR – a market research firm self-described as “the leading source of data and analysis on the beverage alcohol market” – U.S. consumption of tequila and other agave-based spirits grew 30% between 2015 and 2020, and saw another nearly 20% growth in 2020 alone. As of 2021, agave-based spirits were the third largest category of spirits on the U.S. market, trailing behind vodka and whiskey.

Last year, tequila overtook whiskey to clinch second place on the list. And now, IWSR is projecting that tequila will dethrone vodka as the biggest spirit category by value on the American market.

Tequila’s growth is visible in Traverse City at places like Barrio Tacos, which touts a vast selection of tequila as one of its core draws. So far, though, Michigan distilleries have largely stayed away from the spirit. Eastern Kille, a distillery in Grand Rapids, makes “American Agave Spirit,” which it nicknames both “Michigan Mezcal” and “Great Lakes Tequila.” But that spirit is the exception rather than the rule.

When asked whether the national popularity of tequila could prompt more local distilleries to make their own versions of the spirit, Kent Rabish – president and owner of Grand Traverse Distillery – said the answer is less a matter of desire to serve a specific market niche and more a matter of sourcing the proper ingredients.

“If you are a real distillery and you distill what you sell, it comes down to bringing in top-quality blue agave,” said Rabish, who has looked at distilling agave in the past but paused when the quality wasn’t right. “Fermenting and distilling it would be easy, but it’s getting the wrong ingredient that’s holding us back.”

By Clark Miller

The Greek god Prometheus tamed fire and gave it to humanity. Traverse City manufacturer Promethient, named after him, does even more than that. It keeps individuals as warm – but also as cool – as they like.

As company CEO Bill Myers puts it, “We bring climate control to a human scale.”

Promethient’s personal heating and cooling system, marketed under the trademark Thermavance, has hundreds of potential applications, including clothing and office seating.

Myers says that marketing and educating consumers on its entirely new product are two hurdles Promethient is overcoming.

“No one asks for something they’ve never heard of,” he said about Thermavance’s dual heating/cooling capabilities.

To introduce Thermavance to a wider public, Myers and his colleagues follow up aggressively on all leads, and sales reps attend large trade shows like CONEXPO.

“When people talk to us, we’re not at all modest about our technology,” he said.

Myers and his board of directors have also sharpened their focus. Initially, the automotive industry was thought to hold great promise.

“We dropped that idea because other areas are quicker to market and the margins are more attractive,” he said.

However, Promethient isn’t leaving transportation altogether. Instead, it is concentrating more on subcategories such as off-road construction equipment and

sam@samabood.com

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“neighborhood electric vehicles,” which he described as being essentially like golf carts.

“They cost significantly less than a Tesla,” he said. “They’re used a lot in planned communities.”

Promethient now works with wake boat maker Pavati as well as Polaris, the maker of Slingshots, a three-wheeled vehicle. In addition, Myers expects a major pontoon manufacturer to follow suit this summer.

In particular, Myers sees stadium seating as an especially promising market.

“We expect a major stadium or arena to adapt this in 2024,” he said. “It would probably start with luxury seats, including sky boxes.”

The pandemic hit the company hard.

“It locked us down for almost a year and a half,” Myers said.

“It affected the supply chain for electronic components.”

But there’s also good news. He said graph ene, one of the main materials used in production, is in steady supply, has been improved, and the price has remained stable and, in som e cases, is actually dropping somewha t.

Meanwhile, to grow the company, Promethient successfully closed a Series A stock offering in 2021 and currently is raising funds via a convertible note offering.

The Grand Traverse Area Manufacturing Council (GTAMC) sponsors this column. Its mission is to support a sustainable and globally competitive manufacturing sector for a stronger economy; makegreatthings.org.

CBSR OFFICE - 402 E. Front Street - Traverse City, MI 49686

“We expect a major stadium or arena to adapt this in 2024. It would probably start with luxury seats, including sky boxes.”

– Bill Myers, CEO, Promethient

Photo courtesy of Pavati Wakeboats

TAKING CARE OF BUSINESS

Female banking and finance leaders weigh in on their careers and the local economy

by Rick Haglund

Women who lead area financial institutions and run their own financial planning and asset management businesses took various routes to get to the top. Some saw their starting jobs in banking and finance as temporary. Others knew from the beginning that they wanted careers in those industries. Some had mentors that helped them along their career paths. Others relied on their own wits to climb the career ladder.

All of them say the Grand Traverse region’s reputation as a great place to live and work will result in continued economic growth, despite the headwinds of inflation, high interest rates and tight labor markets.

Here’s what six women, leaders in local banking and finance, had to say about their jobs, the challenges they face and advice for women wanting to enter those professions.

Dawn Moses

President, Sensible Finance Solutions, Kalkaska

What attracted you to a career in personal finance and where did you start?

Simply to help people, to make a difference in their present and future. And I’ve stayed for the same reason. I started my career at Waddell & Reed (a Kansas City-based asset management and financial planning firm now known as LPL Financial.)

What did you find was most valuable in preparing for your current position?

As an hourly-only planner, it was important to me to find other advisors that also pursue a similar approach to their practices, whether hourly-only or fee-only. Becoming a member of the Garrett Planning Network allowed for that networking and collaboration.

What advice would you give to other women who want to pursue a career in financial planning?

To anyone, not just women, my advice would be to not forget the soft skills; the people skills. The ability to be empathetic, humble and trustworthy will cultivate your capacity to really hear that which is often unsaid by your clients, thus facilitating a client-centric practice that fosters trust, deepens relationships and creates future referrals.

In addition, work on seeing the big picture; analyzing and considering the long-term results, rather than the short-term or quick fix. Lastly, always be a fiduciary in every sense of the word and put your client’s needs first and foremost.

Did you have a mentor that helped you advance your career? How did that person help you?

Vicki Beam, now of Michigan College Planning, was my first manager at Waddell & Reed. I still hear her voice encouraging me in so many ways, even though it was close to 20 years ago!

What’s the biggest challenge you face in your job?

Being smart about and keeping up with the technological advances and solutions for my practice and for my clients.

What’s your prediction for how the local economy, which has been buffeted by high inflation and rising interest rates, will perform this year?

My prediction for the local economy is that it will continue to grow with all that our amazing northern Michigan has to offer, but with headwinds from inflation, a tight labor market and lack of housing and affordable housing.

Karen Browne President and CEO, TBA Credit Union, Traverse City

What attracted you to a career in banking and where did you start?

I worked as a teller at a community bank for the summer after graduating high school. I loved it! In the fall went off to a university to become a dental assistant. I called my parents crying after my first day of classes. I did not want to learn about teeth! So back to the bank I went. My education came from experience, online university courses and the credit union executive society management institute.

What did you find most valuable in preparing for your current position?

Having overall knowledge and understanding in every aspect of the credit union, being authentic, fully engaged in my work and most of all faith in myself and my purpose.

What advice would you give to other women who want to pursue a banking career?

Lean in, be confident and kind. Work hard, establish goals, hold yourself accountable for your professional behavior, admit your mistakes and learn from them. Listen, rethink and consistently change to grow. You will make bad decisions and that’s the best way to learn. Focus on the good that comes from failures. Develop relationships and don’t be intimidated by anyone, just be yourself.

Did you have a mentor that helped you advance in your career and how did that person help you?

I have had several, mostly my predecessors. They all helped in many ways, basically by trusting my abilities and encouraging continued growth in education.

What’s the biggest challenge you’re facing your job?

Evaluating and managing risks involved with every decision I make.

What’s your prediction for how the local economy, which has been buffeted by high inflation and rising interest rates, will perform this year?

I wish I had a magic ball because this continues to be a roller-coaster ride. I am hopeful that tourism will boost the local economy this summer. The housing market is still a huge concern, not only the number available, but the affordability for low and middle-income families. Until interest rates start to lower and payments become more reasonable, I believe consumers will hang on to their vehicles longer.

Shelley DeYoung Chief Operations Officer, 4Front Credit Union, Traverse City

What attracted you to a career in banking and where did you start?

My career in banking leadership started nearly 20 years ago at a credit union in northern Michigan. What was initially intended to be a short-term transfer of leadership skills from the manufacturing sector to finance has turned into a long-term opportunity to engage in the most meaningful work I have ever done. I am proud to be part of the credit union industry – founded on the philosophy of people helping people – and privileged to serve as the chief operations officer at 4Front Credit Union.

What did you find most valuable in preparing for your current position?

Learning to identify the relationships and resources that inspire, encourage and challenge me to become the best version of myself. Networking with industry peers, building relationships and partnering with local, state and national resources is core to understanding and navigating the ever-evolving financial industry landscape around me.

What advice would you give to other women who want to pursue a banking career?

Go for it! It’s a challenging, but rewarding career. Embrace change—no two days or decades are the same. Banking and finance are people-centric. Thrive on building relationships, giving back to your community, partnering to create solutions and finding joy in the opportunity to change lives, one member at a time.

Did you have a mentor that helped you advance in your career and how did that person help you?

Not formally, but I was fortunate to have been surrounded by several highly driven and successful role models who genuinely cared about those they worked with and the communities in which we live.

What’s the biggest challenge you face in your job?

The goal is to remain relevant, competitive and visionary! Staying forward focused on new ideas to innovate, engage and ensure an excellent experience—every member or every employee, every time.

What’s your prediction for how the local economy, which has been buffeted by high inflation and rising interest rates, will perform this year?

4Front Credit Union has the privilege of serving friends and neighbors in multiple communities throughout Michigan, and while we hear concerning stories and realize the impacts of a changing economy, one thing remains constant: togetherness. I predict our communities will perform strong, despite the uncertainty of the global economy because they already emulate the credit union philosophy of people helping one another and working together to ensure a thriving community for the current and coming generations of friends and neighbors they may live, work and worship within.

Debbie Craig Branch Manager, Craig Wealth Advisors, Traverse City

What attracted you to a career in financial advising and where did you start?

I’ve always been interested in the stock market and investing. When I was 11, I asked my mom to drive me to Olde Discount Brokers in Warren, Michigan so I could purchase my first stock (Wendy’s) and mutual fund (Franklin Growth). I saw my grandmother hide cash rolled in foil and placed in her vegetable crisper in the refrigerator. While it might seem humorous, I got the impression that women managed money and could take care of their family in this way. I majored in economics in college. I just never strayed very far from finance and investing.

What did you find most valuable in preparing for your current position?

I became an advisor in 2000 but was always interested in ‘sharpening my saw.’ In 2009, I started studying for the CFP® designation (Certified Financial Planner™). It’s a two-year program and a grueling two-day exam at the end. But the in-depth study of financial concepts was very valuable. Advising clients on handling their financial investments is a deep trust and I’m always reading research and learning more.

What advice would you give to other women who want to pursue a career in financial advising?

Do it! Only about 15% of financial advisors are women. The industry has programs to encourage women, but in my 23 years of advising, we’ve never moved the needle (14-16%). Women seem to be attracted to the ‘caring’ professions like nursing and teaching. However, there is no greater way to care for someone than by assisting them with their money.

Did you have a mentor that helped you advance in your career and how did that person help you?

Unfortunately, I didn’t have a mentor or colleague that helped me advance. My success was a lot of shoe leather and hard work. In my mind, failure wasn’t an option.

What’s the biggest challenge you face in your job?

The biggest challenge I face in my job is managing emotions and expectations. Fortunately, there are basic financial rules that always apply. Understanding and utilizing these concepts fosters good outcomes. Reminding clients of these in times of turmoil is a challenging part of the job.

What’s your prediction for how the local economy, which has been buffeted by high inflation and rising interest rates, will perform this year?

It is very difficult to buy what nature has given us here – crystal blue water, sand dunes, hiking trails – so we are somewhat protected. Unfortunately, we are not an island and will still share high inflation and higher interest rates with the rest of our country. Our local economy will likely suffer most from the lack of available workers. Businesses will have to pivot and be creative in order to continue growth.

Northern Michigan's banking BFF

for over 100 years.

Autumn Gillow Northern Michigan Market Executive, Fifth Third Bank, Traverse City

What attracted you to a career in banking and where did you start?

Upon graduation from Michigan State University, I wasn’t certain how I would use my finance degree, but I wanted to stay in northern Michigan. I was fortunate to start as a commercial credit analyst with National City Bank (now PNC) right after college. I initially thought banking would be a good first step to gain experience until I determined my next move. As it turned out, through a variety of roles within banking I’ve determined what I really love doing: working with interesting people and companies. I’ve been fortunate that banking has afforded me that opportunity.

What did you find most valuable in preparing for your current position?

I think self-awareness and emotional intelligence are critical for success. I am very intentional about understanding my strengths and weaknesses and surrounding myself with people that are better, faster and smarter than me. I’m lucky to have a fantastic network of people I admire and respect, both personally and professionally. I regularly lean on this group for information, advice and support.

What advice would you give to other women who want to pursue a banking career?

First, I am a firm believer that right now is a great time for a woman to carve a path not only in banking but in any field. If you’re focused, hard-working, have a desire to learn and network, you can excel in any industry. Second, there is an old saying, ‘Better to be a fool for a minute than a fool for life.’ I wholeheartedly believe and practice this. I cannot tell you the number of times I’ve been in a meeting and asked a question and multiple people thanked me afterwards because they didn’t know the answer, either. This applies to banking or any other career. Don’t be afraid to ask the question.

Did you have a mentor that helped you advance in your career and how did that person help you?

I’ve had a number of great managers and mentors in my career but I think my first manager, Chad Dutmers, helped advance my skill set the most. He taught me a fair amount about banking but he taught a lot about business in general; rules of engagement, what to say, what not to say, which was probably more important in my early 20s, and how to have fun along the way.

What’s the biggest challenge you face in your job?

Like most of the country, northern Michigan has seen a significant increase in local businesses (being sold). The activity level has been driven by a number of factors, including low interest rates, historically high prices, aging ownership and increased private equity engagement. This presents a challenge to my role because as local companies are acquired their professional services, such as traditional banking, are often moved outside the region. Conversely this trend has afforded my team (through Fifth Third capital markets and private bank) the opportunity to assist owners looking to sell and manage their liquidity following the transition.

What is your prediction for how the local economy, which has been buffeted by high inflation and rising interest rates, will perform this year?

My team works with a portfolio of middle market companies across northern Michigan. In 2022 we had a lot of conversations around labor, supply chain challenges, and how to deploy liquidity, in large part driven by strong earnings and Cares Act funds. The conversations in the last few months are different; more centered around inflation and rate concerns. I’d say the sentiment is still very positive but business owners are being more strategic and thoughtful relative to growth and opportunities.

Dawn Hemming President, hemming& Wealth Management, Traverse City

What attracted you to a career in financial advising and where did you start?

Over 33 years ago my husband saw my passion for financial calculation and nudged me to consider this field. At the same time, I was running a couple small companies and the financial advisor serving the retirement plan also nudged me. I realized it was a calling.

What did you find most valuable in preparing for your current position?

My background in education, counseling, and running a business along with my MBA – my job uses all of these areas every day.

What advice would you give to other women who want to pursue a career in financial advising?

Women are inherently nurturers, listeners and communicators. It provides an opportunity for fulfillment as a deep helping profession, allows for life balance and fosters lifelong meaningful relationships. We make a big difference for many and that feeds my soul.

Did you have a mentor that helped you advance in your career and how did that person help you?

I was actually a self-starter but I used a coaching program early in my career that was transformational. It rocketed my career satisfaction and fostered exponential growth.

What’s the biggest challenge you face in your job?

Staffing. We have built a thriving business and it is growing exponentially. This requires us to keep hiring. Finding the right people for our culture is an art form.

What’s your prediction for how the local economy, which has been buffeted by high inflation and rising interest rates, will perform this year?

I have learned over the years not to prognosticate. However, increased wages and prices are evident as a result of high inflation. Our local economy is very service-based. We have low unemployment numbers and staffing is returning. Traverse City has become even more attractive for visitors. I can only imagine a vibrant local economy this year.

SBA Expands Funding

Loans support under-served communities and fractional business purchases

By Megan Kelto

Entrepreneurs in northern Michigan and across the United States will soon have greater access to financing, thanks to significant rule changes recently adopted by the U.S. Small Business Administration (SBA).

The changes, which are intended to promote small business development in underserved communities, represent a major modernization of the SBA’s loan programs. The new rules expand who can qualify to receive funding, as well as the types of organizations that can be licensed to offer SBA 7(a) loans.

The SBA’s 7(a) loan program is its most common, and provides loans of up to $5 million for qualifying small businesses. Business owners apply through an SBA-participating lender, and 75-90% of the loan amount is guaranteed by the SBA, backed by the federal government. Funds can be used for working capital, equipment, fixtures, supplies, materials, real estate, construction, refinancing debt, and establishing or acquiring a new business.

While previous rules only allowed the purchase of an entire business, new rules will allow borrowers to purchase a fraction of a business or business interest. This will provide a new path into business ownership, as well as help retiring business owners gradually hand over the reins to a successor.

For prospective borrowers, the SBA will reduce the number of loan approval

entrepreneurs and those from disadvantaged communities, like experience and invested equity, will also be phased out.

According to the SBA, two out of three business owners who applied for credit in 2022 did not get the amount they needed, and the number of lenders originating 7(a) loans under $50,000 has decreased by over 40% since 2017. The loosening of lending criteria will allow SBA-participat-

to banks and credit unions, the SBA has licensed 14 non-bank Small Business Lending Companies (SBLCs) nationwide –a number that hasn’t changed in 40 years. The SBA plans to make available three new SBLC licenses, opening the lending opportunity to new financial companies.

A pilot program for nonprofit, mission-driven and micro-loan lenders will be made permanent. The Community Advantage program, which had been scheduled to end in 2024, specializes in startups and typically provides financing to underserved markets including womenand veteran-owned businesses, and rural and low-income communities. Community Advantage lenders can make loans of up to $350,000, with terms that can be more flexible than traditional 7(a) loans.

factors from nine to three: credit score and history, earnings and cash flow, and collateral. Subjective factors including “character” and “potential” will no longer be considered. Other factors that may discriminate against younger

ing lenders to use their own existing lending policies for similarly sized loans, and streamline the paperwork and red tape.

The SBA will also expand the definition of what types of organizations may be approved to make 7(a) loans. In addition

In the five-county region of Grand Traverse, Leelanau, Benzie, Antrim and Kalkaska counties, SBA-backed loans are an important economic driver. From 20152022, 419 businesses received 540 SBA 7(a) loans, totaling $185 million – directly supporting an estimated 5,200 jobs.

“We hope the SBA continues to roll out programs and ways to help the small businessperson. Because we’ll certainly bring it on and put it into our tool belt.”

– Al Zelinski, senior VP and chief lending officer, Honor Bank

Locally owned Honor Bank is one of the leading SBA lenders in the region, and small business lending is a core part of its century-old business, said Alan Zelinski, senior vice president and chief lending officer.

“We’ve embraced the SBA and utilize a variety of their programs,” Zelinski said. “It’s well-ingrained in the Honor Bank fabric to help small businesses in any way that we can. Certainly, if we can utilize the SBA programs to make that happen, we love to do that.”

One type of 7(a) loan driving Honor Bank’s volume is the SBA Express loan. These loans with faster turnaround are less than $500,000 and are a more economical option for smaller loans.

“We don’t have to wait for a lengthy approval process to get the SBA guarantee – we can do that quickly and easily,” he said. “It’s a smaller program that can be more nimble and quicker to respond.”

From 2015-2022, the average total loan volume for the five-county area was $23 million per year. One notable outlier was 2021, when lenders dispersed over $43 million in 7(a) loans to small businesses – above and beyond PPP pandemic loans.

Zelinski has a theory about why that may have been.

“Because of the pandemic, many

people started working from home,” he said. “They came to the realization that there are things they could be doing on their own, by starting their own businesses. So, the pandemic brought out that entrepreneurial spirit in people.”

The 2021 uptick was especially sharp in Grand Traverse and Kalkaska counties, while Leelanau County showed a steady upward trend from 2018 on. Honor Bank welcomes the SBA expanding opportunities for small businesses.

“We hope the SBA continues to roll out programs and ways to help the small businessperson. Because we’ll certainly bring it on and put it into our tool belt,” said Zelinski.

SBA 7(a) loans by volume by lender, 2015-2022

*Huntington Bank merged with TCF Bank in June, 2021 (TCF merged with Chemical Bank in 2019)

**Nicolet National Bank merged with mBank in September, 2021

Dollar volume of SBA 7(a) loans by county by year

businesses – above and beyond PPP pandemic loans.

Zelinski has a theory about why that may have been.

“Because of the pandemic, many

*Huntington Bank merged with TCF Bank in June, 2021 (TCF merged with Chemical Bank in 2019)

**Nicolet National Bank merged with mBank in September, 2021

Dollar volume of SBA 7(a) loans by county by year

Number of SBA 7(a) loans by county by year

Sum of Gross Approval

Count of Project State

Approval Fiscal Year

Approval Fiscal Year

Count of Project State

Number of SBA 7(a) loans by county by year

Approval Fiscal Year

Project County

BANKING

FINANCE

‘LESS HOUSING FOR YOUR MONEY’

Why mortgage rates aren’t likely to dip any time soon

By Mike Nagy, columnist

As a guy with 40 years of experience in the world of mortgage lending, I tend to get a lot of questions – both in my professional life and just from personal acquaintances – about what I expect mortgage rates to do in the future.

And while I don’t have a crystal ball, here’s what I feel comfortable saying right now: If you’re waiting for mortgage rates to drop before you buy a new home, be prepared to wait a long time.

First, a caveat: When I said I don’t have a crystal ball, I mean it. The past few years have brought global events the likes of which I have never seen in my career, and those events have been accompanied by some truly unprecedented activity in real estate and, by extension, in mortgage lending.

SBA Expands Funding

Loans support under-served communities and fractional business purchases

By Megan Kelto

Record-low interest rates, a massive rush of real estate buying, bidding wars, sight-unseen offers, cash buyers, and purchases so high above asking price they’d make your eyes pop. The way people were buying and selling real estate in late 2021 and early 2022 was like nothing my colleagues and I have ever observed in this business, so it stands to reason that none of us can confidently predict what is going to happen next.

With that said, if you spend enough time in this industry, you get pretty good at reading the tea leaves, and right now, the tea leaves aren’t pointing back toward the low interest rates we had in 2021. And that’s because those rates were a massive anomaly in the first place.

Entrepreneurs in northern Michigan and across the United States will soon have greater access to financing, thanks to significant rule changes recently adopted by the U.S. Small Business Administration (SBA).

The changes, which are intended to promote small business development in underserved communities, represent a major modernization of the SBA’s loan programs. The new rules expand who can qualify to receive funding, as well as the types of organizations that can be licensed to offer SBA 7(a) loans.

Let’s crunch the numbers: In response to the COVID-19 pandemic, the 30-year fixed mortgage rate dropped below 3% for the first time in 50 years. By January 2021, we’d hit our record-low rate: a bargain-basement 2.65%. For comparison’s sake, I was working in mortgage lending in 1981 when we hit an all-time high 30year fixed rate of 18.45%.

As I’m writing this column, the rate for a 30-year fixed mortgage is sitting at 6.667%, and has been oscillating in similar territory for most of this year. Some days it hits 7%. Some days it drops to 6.1%. But it seems we’re destined to spend most of 2023 in that neighborhood of 6-7%.

Now, if you were to compare those rates to the actual all-time high interest

The SBA’s 7(a) loan program is its most common, and provides loans of up to $5 million for qualifying small businesses. Business owners apply through an SBA-participating lender, and 75-90% of the loan amount is guaranteed by the SBA, backed by the federal government. Funds can be used for working capital, equipment, fixtures, supplies, materials, real estate, construction, refinancing debt, and establishing or acquiring a new business.

that buyers dealt with in the 1980s, you’d probably come away feeling lucky. But because we all just lived through the lowest rates in history, a 7% mortgage rate feels pretty rough – especially given the fact that real estate prices are really not cooling down.

While previous rules only allowed the purchase of an entire business, new rules will allow borrowers to purchase a fraction of a business or business interest. This will provide a new path into business ownership, as well as help retiring business owners gradually hand over the reins to a successor.

For prospective borrowers, the SBA will reduce the number of loan approval

When combined with high prices, higher interest rates lead to an inevitable and unavoidable conclusion for any would-be buyer: You are going to get less house for your money than you would have a few years ago.

The elephant in the room here is inventory. In the five-county northwest Lower Michigan region, total dollar volume for home sales was $79,902,874 in April, up from $78,256,903 a year ago. The increase occurred despite a significant drop in the number of homes sold –153, compared to 182 in April 2022.

factors from nine to three: credit score and history, earnings and cash flow, and collateral. Subjective factors including “character” and “potential” will no longer be considered. Other factors that may discriminate against younger

In Grand Traverse County, the average sale price shot up from $420,039 last April to $536,838 this April. So, because of low inventory and high demand, current buyers are getting hit by price

increases upfront, and then getting hit again by higher interest rates.

entrepreneurs and those from disadvantaged communities, like experience and invested equity, will also be phased out.

According to the SBA, two out of three business owners who applied for credit in 2022 did not get the amount they needed, and the number of lenders originating 7(a) loans under $50,000 has decreased by over 40% since 2017. The loosening of lending criteria will allow SBA-participat-

The high-demand, low-inventory situation we’re seeing in northern Michigan is illustrative of why interest rates aren’t likely to dip soon. Historically, the Federal Reserve has raised interest rates as a mechanism to slow down the economy and bring down inflation. The real estate boom of a few years ago was a good example of the type of economic explosion that the Fed has often used interest rates to curb.

The fascinating thing right now is that interest rate hikes don’t seem to be causing economic slowdown as predictably as they have in the past. Despite higher rates and predictions of a forthcoming recession, the United States economy remains robust.

ing lenders to use their own existing lending policies for similarly sized loans, and streamline the paperwork and red tape.

The SBA will also expand the definition of what types of organizations may be approved to make 7(a) loans. In addition

Now, in real estate, higher interest rates have cooled demand somewhat: Even if real estate is still a hot commodity in northern Michigan, you’re not hearing as much today about bidding wars and wayabove-asking-price offers as you were in 2021. If you look at the broader economy,

the writing is on the wall. The Fed is going to have to keep raising rates if it’s going to accomplish what it wants to in terms of inflationary slowdown, and that means mortgage rates are going to go up before they go down.

to banks and credit unions, the SBA has licensed 14 non-bank Small Business Lending Companies (SBLCs) nationwide –a number that hasn’t changed in 40 years. The SBA plans to make available three new SBLC licenses, opening the lending opportunity to new financial companies.

A pilot program for nonprofit, mission-driven and micro-loan lenders will be made permanent. The Community Advantage program, which had been scheduled to end in 2024, specializes in startups and typically provides financing to underserved markets including womenand veteran-owned businesses, and rural and low-income communities. Community Advantage lenders can make loans of up to $350,000, with terms that can be more flexible than traditional 7(a) loans.

If there’s a silver lining to that conclusion, it’s this: If rates were to go back into the 2-3% range we had in 2021, it’s likely we’d just revert right back to the real estate chaos of that time. Until there is more housing inventory, higher interest rates are likely the only thing that is going to keep the market in check. So, while buyers might still be paying more money for less house, the current status quo might at least save them from having to outbid a dozen other people.

Three steps forward, two steps back.

In the five-county region of Grand Traverse, Leelanau, Benzie, Antrim and Kalkaska counties, SBA-backed loans are an important economic driver. From 20152022, 419 businesses received 540 SBA 7(a) loans, totaling $185 million – directly supporting an estimated 5,200 jobs.

Mike Nagy is vice president of mortgage lending at State Savings Bank in Traverse City. He has more than four decades of banking experience. State Savings Bank has been financing homes in northwestern Lower Michigan since 1901.

“We hope the SBA continues to roll out programs and ways to help the small businessperson. Because we’ll certainly bring it on and put it into our tool belt.”

– Al Zelinski, senior VP and chief lending officer, Honor Bank

By Jon Sluis, columnist

There has been a paradigm shift in remote work following COVID-19 and many employers are now coming to terms with the potential long-term implications of this change.

Whether your business is intentionally hiring out of state or you’ve been thrown into it out of necessity, there are definite ramifications to consider with far-reaching implications.

Here are three pointers from a tax standpoint for businesses considering employing remote workers.

1. Know before you go.

Before you hire a remote workforce or keep an employee moving out of state, be sure to do thorough research. Unforeseen tax implications can creep up – one state could have no income tax, whereas another could have taxes you are not used to paying, such as local and workers’ compensation-related payroll taxes. Often registration with a state is a minimum first step.

“If your employee is a salesperson, it can push you into additional taxes, like sales tax, that can get messy and have entity-wide implications,” said Andrew Nichols of Integrated Payroll Services. In this case, having a sales tax compliance plan is critical. Other implications to consider are outside this article’s scope, such as the cost of setting up IT and infrastructure to support a remote employee securely, and health insurance in another state. There is a lot to think about!

REMOTE CONTROL

Tax implications of a remote workforce

2. It’s all about nexus.

When discussing remote work and multi-state taxes, the word nexus inevitably comes up. In the taxation world, nexus is a connection between a state and a business that enables the state to impose a tax obligation on the company. Three types of nexuses are related to multi-state taxes: physical, economic, and affiliate. Brotman Law defines physical nexus as “the level of minimum contacts that you have in a state.” Contacts can be employees or certain third parties, such as independent contractors or vendors. When you have a remote worker in another state, even if they are logging into your server, their presence may constitute nexus for that state. Once nexus is established within a state, the ramifications (both good and bad) are far-reaching.

Think of the relationship between U.S. states as a sibling relationship: They generally get along, but not always. And there are times when they disagree – some more aggressively than others. Remember that time you disagreed with your sibling? Perhaps neither of you were

entirely wrong, but both saw things from a different perspective.

You’re going to have conflicting information, depending on what topic and what authority you’re talking to. Some states have what is called reciprocity – an agreement between states that an individual pays income tax in their state and others do not.

3. Seeing the bright side.

Although the tax and logistic complexities that come with remote work are often viewed as a negative, there are also positives. It can be beneficial if you are hiring someone within one of the states with little or no income tax, thereby creating physical nexus within that state and, with it, the potential to shift some taxable income out of a higher tax state into a lower (or no) tax state. Some states and cities are attracting remote workers by offering generous relocation, home buying, or construction incentives. It also opens you up to finding employees with different strengths and personalities that you wouldn’t otherwise be able to hire. It opens your

business to other markets you may not have had access to.

Whether you have one employee requesting a move or employees spanning multiple states, you must consider the tax implications of the remote workforce. Don’t be afraid of this shift. Working through the complexities can be worth it. Do your research and consult a professional who can help you determine what your tax responsibilities will be. Employers cannot stick their heads in the sand and hope it will all work out or that they will fly under the radar.

Having a plan allows you to stay compliant with state and local laws and, hopefully, will enable you to gain positive synergies that accelerate your business.

Jon Sluis, CPA, is president of Intrust CPA in Traverse City. With a background in public accounting and private industry, he has more than 20 years in the industry. Specific areas of expertise include federal taxation law, tax credit financing, long-range strategic and financial planning, entity structuring, financial improvement measures, and financial reporting; (231) 935-1590 or visit www. intrustcpa.us.

By Anders Gillis, columnist

For years my wife has been binge-watching a show called “Alone.”

For those unfamiliar with it, it’s a reality show where contestants get dropped off alone in the wilderness with a few basic tools and no firearms.

They then fend for themselves. This means making shelter, finding food, staying warm, catching fish, fighting off predators, building housing, etc. Contestants can radio in to be taken home whenever they want. They’ll also get taken home if they get seriously injured, or there is a risk to their health.

It’s incredible. I grew up hunting and fishing in Alaska, but I’m soft compared to these people. The show’s winner – who receives $500,000 – is the person who lasts the longest alone in the wilderness.

Here’s the interesting thing: It’s not usually the physical hardships that make people tap out. It’s not the hunger. It’s not the hard work.

It’s the isolation. It’s the lack of community, friendships, and family. It turns out that several weeks or months without community is not worth $500,000.

Think about that reality for a moment. Professionally, the same holds true. If you have a great workplace community, you’ve got something precious. You’re probably going to be reluctant to leave it.

Good employees don’t usually quit because a job gets challenging. They quit because they feel a lack of community. They quit because they don’t feel respected, heard or appreciated.

Why the elaborate anecdote from an employment attorney? It’s because many employment law problems are, at the heart, retention problems. If you can retain the right people, many legal issues start to take care of themselves.

Your business will have enough trouble recruiting and hiring workforce talent in our region because of housing costs. You cannot afford to hurt yourself by failing to retain great employees.

Here are three quick tips I have for building a workplace community that will encourage retention:

Equitable pay practices. In the workplace, community starts with equitable pay practices, because fair pay is one of the most straightforward ways to show respect. You cannot have healthy relationships where one side lacks respect. You need to pay your employees market rates. Camaraderie does not put food

ALONE AT WORK

Tips for encouraging employee retention

on the table or fuel in the gas tank. My recommendation is that you consider a workplace pay audit so that you can make sure your employees are equitably compensated. Preferably, you should conduct this audit with your attorney so that if the audit exposes any liabilities, you are protected by the attorney-client privilege.

Create a culture of appreciation. Words of affirmation can go a long way in making employees feel like they are not on an island. It can be as simple as saying thank you or giving a verbal shoutout. Or it can be more formal, such as providing a public award or bonus. But when employees feel appreciated, they’re more likely to be engaged and productive. Words of encouragement show an employee working on a project that he or she is not alone and that others notice and appreciate the work being done.

Foster connections between employees. You can be on a crowded bus and still feel alone. That’s because community is about more than physical presence, it’s about connection. Fostering connections between employees is critical to employee retention. If your company is not having the occasional celebration or social event for employees, you’re doing something wrong. Hosting after-hour social events won’t be for everyone. But almost no employee will turn down a free lunch with a

few lighthearted games. Creating opportunities for employees to collaborate on workplace projects is also essential.

Some remote employees may feel isolated, even if they don’t articulate it. If you have remote employees, consider making an occasional work-from-work day where employees are encouraged to connect and work together in person. While physical presence does not equal community, it can help build authentic relationships for many.

No employee should feel alone at work, but employees who do not feel respected, encouraged and connected will likely feel isolated or abandoned even if they are physically present. These employees are a flight risk. So, consider your pay practices, words of affirmation (or lack thereof), and what your business is doing to help employees connect inside and outside work projects. On average, finding a replacement employee costs at least six months’ worth of a departing employee’s salary.

Retention is critical to your business’s success. Take time to think about what you can do to improve it. It will pay dividends for you financially and relationally.

Anders Gillis is a labor and employment attorney at Parker Harvey PLC. He can be reached at (231) 486-4507; agillis@ parkerharvey.com. He is also the author of an employment law blog.

THE MARKET

Invest more confidently in volatile markets

When financial markets fluctuate, perhaps in reaction to world events, inflation, or a change in interest rates, even the calmest investors can start to question their financial strategies. But volatile markets can present opportunities to review and reaffirm investment strategies, says Tracie McMillion, head of global asset allocation strategy for Wells Fargo Investment Institute.

“Financial markets are frequently volatile — that’s their nature,” she says. “Even so, during periods of uncertainty, investors may start to question their investment decisions. Having a plan in place can provide the guard rails to help steer through and beyond the volatility.”

In addition to reaffirming and focusing on your plan, here are some strategies you can use to help weather economically turbulent times.

Match your investments to your time horizon

The simplest way to feel more comfortable about your investments is to align them with your financial calendar, no matter what happens in the financial world this month or year. For example, do you need some of your money fairly soon or want it close at hand in case of an emergency? If so, McMillion says you should consider investments such as cash holdings and short-term bonds that shouldn’t lose much, if any, value over the short term. On the other hand, if you won’t need some of your investment money until you retire multiple years in the future, equities or longer-term bonds are worth a closer look. Those investments carry more risks but also offer potentially better returns.

Know what to expect from your investments

Some investors lose confidence because they don’t fully understand how their investments work. In that case, McMillion says, some knowledge of typical asset behavior is a good thing. Consider reading up on different types of investments and asking questions of your financial advisor. Once you know how your investments are more likely to perform in certain financial markets, you can help ensure that your investment strategy is in line with your tolerance for risk.

Tune out the noise

By “noise,” McMillion means the constant barrage of financial reports and other news events from the 24/7 news media. “Investors usually don’t need to react to the everyday financial news, no matter how topsy-turvy things may seem,” she says. Keep your long-term goal in mind.

Regularly revisit your plan

There’s no such thing as a completely set-it-and-forget-it investment strategy, McMillion says. It’s always smart to check in regularly with your investment advisor.

“Your life circumstances may change, or your financial goals could shift,” she says. “You’ll feel much more confident that your investments are doing their job if you review them regularly with your advisor.”

BOOK REVIEW

By Chris Wendel

For years, there’s been a stream of business books written by public-facing CEOs touting their instrumental roles with uber-successful companies.

“Build” is a book that reveals more of the inside workings of tech start-up companies. The book’s author Tony Fadell has vast experience working on the front lines of product development, while also managing high-growth businesses.

Fadell worked with teams on the genesi s of the iPod and iPhone and later founded the Nest connected home system company. He left Nest in 2014 when the company was purchased by Google. With some time to reflect, writing “Build” afforded Fadell the opportunity to use his wide-ranging career lessons as a guide for others. In writing the book, Fadell also offers practical lessons for those starting out on their professional paths.

The book is arranged in a series of six chapters starting with career-related information. To Fadell, early in one’s life is the time to follow a strong passion or interest. Because one is less likely to have time commitments, this is also the time to work long hours and throw one’s self into work.

Thi s section may seem irrelevant to those beyond this career stage who are looking and reading Fadell’s expertise on launching a new product or a business. Still, the chapters “Build Yourself” and “Build Your Career” are great reviews and foundations for having a broader mindset that is applicable for later chapters.

The chapter “Build Your Product” stresses the customer experience for creating a product or service. Fadell discusses the process of having a vision first and data second as product development first occurs. Further along in the process this changes at a point where feedback and data become critically important and the vision is secondary. He discusses the importance of paying attention to that nagging idea or concept that lingers in one’s mind, especially if it persists over the long-term.

Chapters related to running a company stress how important it is to understand managing from the employees’ point of view and balancing it with immediate goals and demands. Someone moving into management because of their strong sales or engineering skills may not be immediately successful. Fadell writes, “Once you become a manager, you stop doing the things that made you successful in the first place.”

“Build” also talks about Fadell’s experience working with Steve Jobs at Apple and Job’s attention to detail. He cites his direct approach to managing as off-putting to many, but effective for producing products that solved consumer problems that Apple’s competitors failed to see.

Fadell discusses break points in the expansion of a company; an early startup can be managed by its founder until

BUILD: AN UNORTHODOX GUIDE TO MAKING THINGS WORTH MAKING

B y Tony Fadell

it reaches the 15-employee mark. After that point, managers are hired to manage additional employees until the organization reaches roughly 40 employees. After that, a second layer of management takes hold for a company to be successful. For a founder, moving further away from direct control and communication with employees and processes can be a challenge.

In the book’s final chapter, Fadell dives into strategies for leadership success. These include owning one’s own mistakes as a leader and knowing the difference between opinion and data driven-making decisions. He takes a jab at Google when discussing useless perks (i.e., massages, free food) that lead to a sense of entitlement that can squelch innovation.

“Build” is a realistic portrayal of what it’s like to work on the front lines of a company developing meaningful products. It’s also genuine when Fadell discusses failure and the toll it took on the companies he worked with. He stresses the importance of one having their own passion and motivation and, as a manager, providing those same conditions and opportunities to employees. Although his writing tends to wander throughout the book, “Build” serves as a valuable guide for any aspiring or established entrepreneur.

Chris Wendel works for Northern Initiatives, a mission-based lender located in Marquette, Mich. Northern Initiatives provides funding to businesses in Michigan and know-how to organizations throughout the United States. Wendel lives and works in Traverse City.

If you are on an entrepreneurial journey, let’s talk. We’ve been on ours for 22 years. “Be Entrepreneurial” is a core value at Nicolet Bank. Founded by entrepreneurs. Built by entrepreneurs. Supported by entrepreneurs. Come join us.

Michael Caruso

SVP Commercial Banking

231.941.6303

mcaruso@nicoletbank.com

John Galbraith

VP Commercial Banking

231.632.9331

jgalbraith@nicoletbank.com

Jeremy Harnish

SVP Commercial Banking Manager 231.941.6306

jharnish@nicoletbank.com

Andrew Sabatine

SVP Commercial Banking

231.941.6301

asabatine@nicoletbank.com

Traverse City NicoletBank.com 800.369.0226

Member FDIC

Real People. Real Conversations.

3

>> BANKING & FINANCE

>> EDUCATION

Northwestern Michigan College in Traverse City announces the following:

4 - Gail Kurowski, director of the Police Academy since 2019, is the recipient of this year’s Staff Excellence Award. Kurowski led the program’s switch from a single, nine-month academy per year to two 16-week academies per year, resulting in the academy being able to double the number of students it serves.

5 - Philosophy instructor Sarah Montgomery-Richards is this year’s recipient of the Adjunct Faculty Excellence Award. Chosen by a student selection committee, award criteria includes teaching excellence, rapport with students, innovation in the classroom and a sense of dedication.

6 - Nick Roster, a biology instructor, is this year’s recipient of the Imogene Wise Faculty Excellence Award. Chosen by a student selection committee,

award criteria includes teaching excellence, rapport with students, innovation in the classroom and a sense of dedication.

The Great Lakes Culinary Institute is the recipient of this year’s Team Excellence Award. Led by director Les Eckert , the team includes Patty Cron-Huhta , Mike Skarupinski , Jim Morse and Dean Haselton Together, they restructured the culinary program’s operating plan and developed a new model focused on long-term sustainability.

>> HEALTH CARE

7 - Megan Brown is the new chief marketing and communications officer for Munson Healthcare. Brown leads internal and external marketing, communications and public relations for the health system. Most recently, she was executive director, corporate communications, at Consumers Energy.

1 - Tan elle Budd has been promoted to associate advisor at hemming & Wealth Management in Traverse City. Budd recently obtained her Series 65 license and plays a key role in providing financial planning and investment management services to clients.

2 - Billie Shemer has joined Honor Bank as branch manager of the Copemish location. Shemer brings eight years of experience in local banking to her new role.

- Fletcher Spears IV has joined Dennis, Gartland & Niergarth in Traverse City as a senior accountant. Spears brings a background in bookkeeping and payroll services, personal and business tax preparation, and consulting.

1 // TANELLE BUDD

6 // NICK ROSTER

2 // BILLIE SHEMER

7 // MEGAN BROWN

3 // FLETCHER SPEARS IV

8 // HOPE BROXTERMAN

4 // GAIL KUROWSKI

9 // CASEY KANDOW

5 // SARAH MONTGOMERY-RICHARDS

10 // ANASTASIYA ZUBAR YEVA

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>> REAL ESTATE

11- Jennifer Hamilton has joined KW Northern Michigan as an agent. Hamilton has been involved in the real estate industry for 20 years, working as a licensed agent since 2006.

12 -

13 -

>> OTHER

14 -

Conachan bring a background in customer service and design to his new role.

15 - Dave Irish has joined Sonny’s Body Shop in Traverse City as production assistant. Irish brings more than 30 years of experience in the painting industry to his new role assisting with project tracking, expediting and project throughput.

16 - Stella Young has been named director of development for On The Ground, a nonprofit organization founded in Traverse City that engages in community development in conflict zones around the world.

17 - Alex J. Zelinski has joined Ford Insurance Agency in Traverse City as a commercial account executive.

Please send Newsmakers by the 10th of the month to news@tcbusinessnews.com

8 - Mun son Medical Center pharmacist Hope Broxterman, Pharm.D., was recently named president of the Michigan Pharmacists Association. Broxterman has been a clinical pharmacist at Munson Medical Center since 2011 and has focused her practice on critical care/cardiology areas of the hospital since 2013.

9 - Casey Kandow is the new CEO of Traverse Health Clinic. He replaces Arlene Brennan, who recently retired. Kandow brings extensive experience in healthcare management, most recently serving as system vice president of ancillary operations at Munson Healthcare.

- Anastasiya Zubaryeva, PA-C, has joined Digestive Health Associates of Northern Michigan as a physician assistant. Zubaryeva assists in diagnosing, treating and preventing digestive tract diseases.

Rachael Hensley has joined the Traverse City office of CENTURY 21 Northland. She specializes in residential and luxury sales.

John Secord has joined KW Northern Michigan as an agent.

Toby Conachan has joined Bay View Flooring & Design Center in Traverse City as a sales associate.

11 // JENNIFER HAMILTON

16 // STELLA YOUNG

12 // RACHAEL HENSLEY

17 // ALEX J. ZELINSKI

13 // JOHN SECORD 14 // TOBY CONACHAN

15 // DAVE IRISH

EXPOSURES

Carpet

was the setting of the Home Builders Association Annual Member Awards Presentation. Pictured are Ed Fantozzi (Jim Alpers Associate of the Year), Brian Terhune (Humanitarian/ Community Award), Lauren Tucker, Executive Officer HBA, Kyndra Nickerson (Outstanding Member), Daniel Paulson (Distinguished Builder) and Matt Waligorski (Emerging Leader).

During Northern Michigan Startup Week, 20Fathoms recognized six individuals with Community Champion awards for making a meaningful impact on the region’s startup and entrepreneurship community. Jamie Gleason, Jennifer Berigan, Eamon Smith, Jody Trietch, Chuck Meek and Jason Slade are pictured with 20Fathoms’ Executive Director Eric Roberts (in black coat).

BATA’s Executive Director Kelly Dunham spoke at the official groundbreaking of BATA’s 87,000-square-foot headquarters near the corner of LaFranier and Hammond roads. The facility will include administrative offices, a bus storage garage, and maintenance and dispatch facilities – plus a new bus transfer station. Photo by Jason Hamelin.

Cut & Run is a new coffee shop offering premium roasts and snacks at 155 Garland St., Ste. 101. It also offers semi-private booths and private conference rooms for meetings and remote work.

Panelists Lisa Leedy, Tonya Wildfong, Shari Fouch Prevost and Devin Hill at Windemuller’s recent “Women in Construction: Diversify Your Crew” event, which focused on the barriers often faced by women in the historically male-dominated industry. The panel shared stories from the field, explained what men (often those in leadership positions) can do to help, and discussed why diversity is important.

Galleria

Prout Financial Design owner Dennis Prout and Kimberly Boyer of Ford Insurance paused for a photo at the grand opening and ribbon cutting for Prout Financial’s new building on the corner of 8th and Garfield in Traverse City.

Shanty Creek Resort recently unveiled a new look and feel to The Lakeview Restaurant and Lakeview Hotel Lobby. The lobby and great room, restaurant, bar and front desk area have all been renovated.

Keri Amlotte, director of marketing at 20Fathoms, spoke at the Rural Innovation Network Summit during a panel discussion about 20Fathoms and the growth of tech entrepreneurship in Traverse City. From May 1-3, leaders in rural innovation and entrepreneurship from around the country gathered in Traverse City for the summit.

Kristine

Judi

Barb Heather