TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOP TOPREALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS REALTORS
Evenwithlimitedinventory,thenumbersswelledin2023 intheTCBN’sannualrankingoftopsellers.
Great things are getting closer, TC!
TRAVERSE CITY BUSINESS NEWS MAY 2024 1 PRSRT STD U.S. POSTAGE PAID TRAVERSE CITY, MI PERMIT NO. 7 $3 MAY 2024 • VOLUME 28 • NUMBER 10
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LOCAL CO. PRODUCES MATERIAL FOR NAT’L CHAMPS
BookWear® & Field Crafts, Inc. in Honor was completing an order last month for 8,000 flags for the University of Connecticut’s admissions department just as the university’s men’s basketball team won the NCAA championship. Its longtime powerhouse women’s team also made the Final Four. “It is a broader general recruitment that we’re working with, not specifically their athletic basketball recruiting,” said Field Crafts and Bookwear founder and owner Jack Gyr. “We got this order March 2, so they would have already known they were seeded in March Madness. I’m not sure if that was a piece of their decision to do this marketing.” The company makes apparel and other promotional products.
MERGER CREATES STUDIO PRO IN TC
TC Studio & Studio Pro Massage, a boutique massage school and advanced esthetic apprenticeship program, have merged and is now Studio Pro. It also has relocated to 2301 N. Garfield, Suite C in Traverse City. It offers massage, skincare treatments, and eyelash and eyebrow services at affordable prices while students advance their careers. Studio Pro is owned by industry veteran Dawn Pater.
COMPANIES BUILD DUGOUTS FOR DREAM TEAM
The Dream Team of Northern Michigan, a co-ed adaptive baseball league for players with disabilities in the Grand Traverse region, is getting new ADA-complaint dugouts on fields 2 & 3 at the Grand Traverse County Civic Center thanks to donated labor and materials from various local companies. Hallmark Construction is leading the construction build team, with help from Team Elmer’s, Svek Construction, Popp Excavating, Builders First Source, Cement Central, and Grand Traverse Construction, along with others. Local foundations, civic groups, business sponsors and individual donations also supported the project.
A ribbon-cutting ceremony is slated for 10 a.m. on May 11 – The Dream Team’s opening day - with a special appearance by former Major League Baseball catcher Doug Mirabelli.
TC RESTAURANT & RETAIL UPDATES
Traverse City’s newest brewery location has opened at 1110 East Eighth St. next to Oakwood Proper Burgers. Tank Space, owned by Jamie and Andrew Kidwell-Brix, is a new satellite location for Earthen Ales, which will also maintain its original location at The Village at Grand Traverse Commons. After 10 years at 322 East Front Street, Traverse City Guitar Company is preparing to relocate to bigger digs at 3333 Cass Road. Owner Gene Hansen said the move will provide easier access and parking and more room for product lines and lesson rooms. intimi, a lingerie and undergarment boutique offering inclusive sizes and options for intimate wear, has opened at 124 South Union (formerly I’m Planty AF). In the Warehouse District, The Workshop Brewing Company has received its small distillery license and is now serving cocktails at both its TC location and at sister location Kingsley Local Brewing. In nearby Warehouse MRKT, The Refillery Traverse City is opening a second location – in the space formerly occupied by Eelo/Freshwater Textiles. Meanwhile, Eelo is planning an early June opening in its new space at 102 and 104 East Front St. (formerly Diversions).
THE OUTDOOR ECONOMY: $1.15 BILLION
A new Outdoor Recreation Economic Impact Study for northwest Michigan led by Networks Northwest shows the outdoor economy employs 4,712 workers in the 10 counties of northwest lower Michigan and contributed $1.15 billion to the gross regional product in 2022.
“This study showcases the critical importance of the outdoor recreation industry in northwest Michigan, as well as its potential for further business opportunity,” said Janie McNabb, CEO, Networks Northwest. Opportunities for business
TRAVERSE CITY BUSINESS NEWS MAY 2024 3
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4 MAY 2024 TRAVERSE CITY BUSINESS NEWS COMMITTED TO STRONG BONES Joseph Ward, MD Orthopedic Surgeon Hip and Knee Specialist WORLD-CLASS CARE FOR YOUR HIPS, SHOULDERS, KNEES, AND SPORTS INJURIES Is joint pain or discomfort disrupting your life? The team at Munson Orthopedic Institute is committed to strong bones and getting you back on your feet. Ready to get started? We’re accepting new patients! Request a consultation at munsonhealthcare.org/MOI Matthew Dubiel, MD Orthopedic Surgeon Shoulder and Elbow Specialist Michael VanWagner, DO Orthopedic Surgeon Hip and Knee Specialist Research Research Research ? or you could ask your team of local natives serving the Traverse City and surrounding areas for 45+ years. www.ryanandjennirealtors.com 310 W. Front St Suite 411, Traverse City MI 49684 Buy, Sell or Build ... give us a call today about ALL your real estate needs
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investment and development are also recommended in the study. Find it here: nwm.org/OutdoorRec.
NEW ROBOT FOR KNEES
Copper Ridge Surgery Center (CRSC) in Traverse City recently announced the integration of ROSA Robotics – stateof-the-art technology for total knee replacement procedures that allows patients to go home the same day. “I am thrilled to spearhead the adoption of this cutting-edge technology at Copper Ridge Surgery Center,” said Dr. Michael VanWagner, an orthopedic surgeon with the Munson Healthcare Orthopedic Institute, which is collaborating with the surgery center on the technology implementation. CRSC is northern Michigan’s only ambulatory surgery center offering this robotic surgery.
LEELANAU WINES LAUDED
The Leelanau Peninsula Wine Trail recently announced the success of its member wineries at the TEXSOM International Wine Competition. The wine region garnered a total of 55 medals. “This achievement is a testament to the hard work and dedication of our local winemakers, who continue to push the boundaries of quality and innovation,” said Geoff Hamelin, president of the Leelanau Peninsula Wine Trail. For a full list of award-winning wines, visit lpwines.com.
COMMUNITY FOUNDATION INVESTS IN HOUSING
The Grand Traverse Regional Community Foundation has invested $1 million from its endowment portfolio in IFF’s Michigan Housing Fund, which will support attainable housing projects in the region. “We’re proud to have IFF as our new CDFI (Community Development Financial Institutions Fund) partner as they will be deploying the Community Foundation’s capital in our five-county service area, providing loans to developers of low-income and workforce housing at below-market rates,” said David Mengebier, president & CEO of the Community Foundation. “Together with IFF, we will
be supporting solutions that will help alleviate the local housing crisis and keep more local families here in our region.”
SCORE TC IN TOP 20 NATIONWIDE
SCORE Traverse City was recently recognized among the top 20 national chapters for client satisfaction – snagging the #18 spot out of 227 chapters evaluated.
“We extend our heartfelt congratulations to our devoted volunteers whose hard work and unwavering commitment have resulted in this exceptional recognition,” said Jeff Hamilton, president of SCORE Traverse City. “This achievement underscores our mission to deliver unparalleled customer service and support to our region’s small business community.”
GRACELAND: BUSINESS OF THE YEAR
Graceland Fruit in Frankfort has been selected as the Northwest Michigan APEX Accelerator Best Small Business of the Year. Graceland Fruit is a leading producer and global distributor of premium quality dried fruit ingredients for the food industry. The company is being recognized for working to increase its government sales with assistance from APEX Accelerator. “Our partnership with APEX has been extremely valuable to us over the years,” said Kerry Babion, customer sales & service manager.
NORTH FLIGHT LANDS NEW HELICOPTER
North Flight Aero Med, a joint operation between Corewell Health (formerly Spectrum Health) and Munson Healthcare, has added a Sikorsky S-76 C++ helicopter to its fleet. This aircraft is the new primary helicopter for the air ambulance operator in northern Michigan. North Flight operates from a base located in Traverse City with three total aircraft.
“This new helicopter will enable us to continue to serve the northern Michigan community for many years to come,” said Tiffany Obetts, director, Corewell Health Aero Med & North Flight Aero Med.
NEW ULTRASOUND IMAGING AVAILABLE
The Center for Plastic Surgery in Traverse City is now offering high-definition ultrasound imaging to screen and detect abnormalities in breast implants. Among the benefits of the Clarius HD3 Portable Ultrasound Machine are shorter in-office visits and instant results.
TRAVERSE CITY BUSINESS NEWS MAY 2024 5
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As I look out on Front Street from our business, Blue Goat Wine & Provisions, I see a torn-up road, with bulldozers and excavators. What I don’t see are as many happy customers able to get to us, as people try their best to navigate one of the largest construction projects and detours our area has seen in many years.
One thing that comes whimsically to mind is “this too shall pass” and “what doesn’t kill you makes you stronger.” Even though we are a newer business (my wife and I took over full ownership only within the last five years) and we have since also dealt with the uncertain times of Covid, I am confident that we will survive the next few months and that in the end, this will make us stronger than ever.
I’ll be honest, the initial shock of near-zero sale days and an 80% sales drop was a gut punch. But as our team buckled down, working tirelessly as we’d planned, and with the community rallying around us, we started to see a shift. Gradually, those sleepless nights mostly subsided.
Idioms and proverbs aside, how does one know if something will pass, or if it won’t be the death knell for a business? For us, it began with a shift in mindset. Instead of asking, “What if our road gets partially shut down for 3 months?” we said, “What would we do if this happens?”
By reframing the situation, we pivoted from fear to finding solutions in ways we had control over. Instead of losing sleep over the things that are out of our hands, we tried to find areas we could improve upon or work around.
DETOURS AHEAD:
Pivoting from fear to finding solutions during road reconstruction
For instance, collaborating with MDOT ensured that two-way access from the north of our business remained open to Peninsula residents, making it easier for our loyal patrons to get to us even with the road project. This is something we set the groundwork on over a year before shovels went into the ground. We also
the long run, making us stronger in the years to come.
Even with meticulous planning, some aspects will remain beyond our control. For example, what if the community hadn’t rallied? What if there was a huge delay in the road project and we had difficulty paying our expenses? Fortunate-
This situation reminds us of the importance of focusing on what we can control and maintaining a long-term perspective.
leveraged social media to update followers on the construction and promote new delivery and weekly “care package” options, even teaming up with local businesses like Flat Cap Ventures for pop-ups.
Another idea that we are excited to launch are Traverse City gift boxes including local wines and treats that we can ship throughout the state. We are sure the boxes will make great gifts, even when someone isn’t here to enjoy our beautiful area. These efforts might not counteract the roadwork completely, but the silver lining is that in addition to keeping us going, they fostered new ideas and relationships that strengthen our business in
ly, the support we received was overwhelming, reaffirming our belief in this incredible town, and although the road project isn’t done yet, it’s all but certain Team Elmer’s is safely ahead of schedule at this point. This situation reminds us of the importance of focusing on what we can control and maintaining a longterm perspective.
An example of focusing on things we have control of and maintaining a longterm perspective occurred recently with one of our staff. This staff member was concerned how we would get through a prolonged road project, knowing that we are a newer business where things are
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already tight in the initial years. After talking things through and reiterating that we had saved and planned for this, we both agreed that once we had done everything we could to creatively serve our loyal customers during the road project, we would shift any extra time and energy to new and future ideas. This was a winwin because it reassured our staff that by and large we wouldn’t have to make any drastic cuts even if things got slow, and they appreciated knowing that everything would be okay. (We have AMAZING staff, and I can’t reiterate this enough.)
The moral of the story is that by concentrating on things that we have control over – be it planning ahead of time or through in-the-moment pivoting – in conjunction with maintaining a long-term focus, we can survive many of life’s detours. As annoying as a short-term detour is, the outcome will be worth it for us and our entire community for more ways than one. To end with another idiom, we could say that the end justifies the means.
Sebastian Garbsch founded Formative Fitness after graduating from Ferris State University with his bachelor’s in business. He is the owner of Blue Goat Wine & Provisions and is currently serving as president of the Traverse Symphony Orchestra, as well as on the board of TC Tritons Rowing and Downtown Traverse City Association. In his free time, he enjoys spending time with his family, being outdoors and seeking new opportunities that align with his passion for business growth and community engagement.
The Traverse City Business News
TRAVERSE CITY BUSINESS NEWS MAY 2024 7 Have something to say? Send your letters to: news@tcbusinessnews.com We reserve the right to edit for space and clarity.
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COMMENTARY BY SEBASTIAN GARBSCH
TOP SELLERS
The Region’s Top 50 Volume Realtors for 2023
Residential sales for 2023 were down from 2022 for the five-county area in both units sold and overall sales volume, according to year-end totals from the Northern Michigan Multiple Listing Service (MLS). But what is up is the average sales price of a home, reaching a new record high of $502,697, which is significantly higher than the prior year’s record high of $466,940. Though inventory remains tight and mortgage interest rates have nearly doubled since 2022, demand hasn’t waned much.
Navigating the market’s ups and downs are the region’s highly-skilled real estate agents. Below is our annual list of the top 50 real estate sellers in the five-county area. The list includes ALL solds, including single-family residential and commercial in Grand Traverse, Leelanau, Benzie, Kalkaska and Antrim counties.
Editor’s note: For the past seven years the TCBN has published the ranking for single-family residential sales in Grand Traverse, Leelanau, Benzie, Kalkaska and Antrim counties by local sellers. The ranking is based on the official MLS data provided by Realtors to their regional association. TCBN did not receive any MLS database access nor any information directly from Aspire North Realtors or Northern Great Lakes Realtors MLS for these rankings. Data is published as provided with no changes or manipulations.
Those with an asterisk (in the top 25 only) are Realtors who work as “teams,” where prop erties sold by 2+ individuals are listed under one person’s name.
TOP 2023 SINGLE-FAMILY RESIDENTIAL/COMMERCIAL SELLERS
1
DON FEDRIGON
RE/MAX of Elk Rapids, $86.5m
2
BOB BRICK
RE/MAX Bayshore, $77m*
3
SAM FLAMONT
The Mitten Real Estate Group, $76.9m*
8 MAY 2024 TRAVERSE CITY BUSINESS NEWS
REAL ESTATE
TRAVERSE CITY BUSINESS NEWS MAY 2024 9 GOLF . SWIM . GATHER . DINE { Lifetime friendships made here. } Contact our Membership Director Susan McElduff for information. susanl@tcgcc.com 231.947.0985 TCGCC.COM Stuffiness not included! Enjoy everything the CLUB has to offer in a beautiful, private escape. Golf and Social Memberships Looking for a great way to connect with other families and professionals? We offer individual and family memberships. Ask about our amenities and additional benefits. Reconnect with old friends. And meet some new ones too! REAL ESTATE: TOP REALTORS/COOL PROPERTIES MATTHEW DAKOSKE RE/MAX Bayshore $52m* SHAWN SCHMIDT SMITH Coldwell Banker Schmidt $39.8 5 MOLLY BUTTLEMAN Coldwell Banker Schmidt $38.2m 6 7 KYLE O’GRADY RE/MAX Bayshore $37.7m MARK HAGAN Coldwell Banker Schmidt $34.8* 8 10 TJ SHIMEK The Mitten Real Estate Group $32.9m RANAE IHME LVR Realty $36.8m* 4 11. ANN PORTER Real Estate One $31.9m 12. LINDA SCHAUB Real Estate One $31.6m 13. BEN STREET Coldwell Banker Schmidt $29.2m* 14. MICHAEL ANNELIN Century 21 Northland $25.3 15. JULES YATES RE/MAX Bayshore $25m* 16. JONATHAN OLTERSDORF Oltersdorf Realty $24.8m 17. CHRISTINA INGERSOLL RE/MAX Bayshore $24.5m 18. JAIMIE FELLOWS-GARNO City2Shore Real Estate-NM $24.3m 9 TOP 2023 RESIDENTIAL/COMMERCIAL SELLERS
10 MAY 2024 TRAVERSE CITY BUSINESS NEWS REAL ESTATE: TOP REALTORS/COOL PROPERTIES MOLLY BUTTLEMAN Coldwell Banker Schmidt $38.2m 6
Coldwell Banker Schmidt $34.8*
MARK HAGAN
The Mitten Real Estate Group $32.9m
TJ SHIMEK
Real Estate One $31.9m
11. ANN PORTER
Real Estate
$31.6m
12. LINDA SCHAUB
One
$29.2m*
13. BEN STREET Coldwell Banker Schmidt
$25.3
14. MICHAEL ANNELIN Century 21 Northland
RE/MAX
$25m*
15. JULES YATES
Bayshore
16. JONATHAN OLTERSDORF Oltersdorf Realty
$24.8m
RE/MAX Bayshore $24.5m
17. CHRISTINA INGERSOLL
City2Shore Real Estate-NM $24.3m 9 TOP 2023 RESIDENTIAL/COMMERCIAL SELLERS 18 76 EST. bahles.net hours MON–SAT 10AM-530PM SUNDAY CLOSED Downtown Suttons Bay LOCATED IN BEAUTIFUL LeelanauEMBRACE COUNTY AVAILABLE ONLY AT #IYKYK monarchhomehealth.com 20 Years of Trusted Care. 231.932.0708 IN-HOME CARE. FOR ALL AGES. ALL HOURS. Home Is Where The Heart Is
18. JAIMIE FELLOWS-GARNO
TRAVERSE CITY BUSINESS NEWS MAY 2024 11 REAL ESTATE: TOP REALTORS/COOL PROPERTIES
19. RYAN CRAIG The Mitten Real Estate Group $23.2
20. HOLLY HACK EXIT Realty Paramount $22.9m*
21. JON ZICKERT Real Estate One $21.9m
22. AUDRA JACKSON Exit Northern Shores Realty $20.6m
23. KEVIN ENDRES Three West $20.5m
24. ERICA MOHR Real Estate One $19.5m
Your Local Business Broker www.goldencircleadvisors.com info@goldencircleadvisors.com TRAVERSE CITY Curtis D. Kuttnauer (231) 922-9380 PLYMOUTH Fred Manuel (734) 320-6667 Are you a Baby Boomer business owner? Ready to move into retirement? We can help you sell your business at the highest price. The Next Generation of Dentistry Welcome Dr. Joe Yancho to the team. NOW ACCEPTING NEW PATIENTS! 231-941-2201 3699 S AIRPORT ROAD WEST • TRAVERSE CITY
25. TIM SCHAUB Schaub Team Premier Realty $19.4m
26. JULIA PIETROWICZ
Keller Williams-Northern Michigan
$19.4M
27. MATT HODGES
Kultura Real Estate
$19.2M
28. TAMARA MCLEOD HELSEL
City2Shore Real Estate-Northern Michigan
$18.9M
29. CHRISTINE STAPLETON
Stapleton Realty
$18.9M
30. PETER FISHER
Coldwell Banker Schmidt
$18.8M
31. JACK LANE
Real Estate One
$18.5
Market Hub
32. LYNNE MOON
Real Estate One
$18.3M
33. GREG BOSSCHER
Five Star Real Estate $18M
34. MATTHEW GEIB
Century 21 Northland
$18M
35. CORLISS BEUERLE
Century 21 Northland $17.9M
36. DIANE KEMP
Resort Realty at The Homestead $17.5M
37. CARLY PETRUCCI
Coldwell Banker Schmidt $17.3M
38. DEBRA HALL
Real Estate One $17M
REAL ESTATE: TOP REALTORS/COOL PROPERTIES
39. KIMBERLY BORK
Venture Properties $16.8M
40. CHRISTIAN NELSON RE/MAX of Elk Rapids $16.4M
41. PAM DEPUY
The Martin Co. $15.5M
42. STEVE SCHEPPE
Century 21 Northland $15M
43. JANET PISCOPO Coldwell Banker Schmidt $14.6M
44. KARI KING
Century 21 Northland $14.5M
45. ROBERT SERBIN
Serbin Real Estate $14.5M
46. JENNIFER HASTINGS
Key Realty One $14.4M
47. DEBORAH ALEXANDER
Real Estate One $14.4M
48. HILLARY VOIGHT
Five Star Real Estate $14.3M
49. ERIKA NITA
The Mitten Real Estate Group $14M
50. PAMELA STOWE
Real Estate One $14M
VISION
Implement design-build to completely transform an under-utilized “diamond in the rough” property.
“
Burdco executed our clear vision of how to maximize this property’s potential.They worked to achieve what we wanted, provided cost-effective solutions and were accessible throughout the process.
–ECEK Holdings, LLC, Traverse City Developer for Market Hub shopping center
Dan Pater Project Manager, Burdco
John Kolarevic Managing Partner, ECEK
Mike Kolarevic Managing Partner, ECEK
Mike Brown Owner, Burdco
hub
DESIGN/BUILD MEDICAL OFFICES COMMERCIAL ASSISTED LIVING INDUSTRIAL
12 MAY 2024 TRAVERSE CITY BUSINESS NEWS
A WELCOME TRAVERSE CITY • GAYLORD • PETOSKEY BURDCO.COM • 231.941.9074 ”
TRANSFORMATION
market
TRAVERSE CITY
TOP 2023 COMMERCIAL SELLERS
1. Kevin Endres, Three West, $20m
2. Dan Stiebel, Coldwell Banker Schmidt, $12.4m
3. Shawn Schmidt Smith, Coldwell Banker Schmidt, $8.2m
4. David Frost, Three West, $7.7m
5. Kevin Query, Three West, $5.9m
6. Rita Rathburn, Berkshire Hathaway Home Services Michigan, $4.4m
7. Scott Hardy, Coldwell Banker Schmidt, $4.3m
8. Bill Somerville, Three West, $4.3m
9. Robert Weisbrodt, Real Estate One, $4m
10. Carole Higgins, Cygnus Real Estate, $3.8m
Sales numbers are commercial sales as entered into MLS and might not reflect commercial leases or commercial vacant land sales, which could alter results significantly.
TRAVERSE CITY BUSINESS NEWS MAY 2024 13
REAL ESTATE: TOP REALTORS/COOL PROPERTIES
14 MAY 2024 TRAVERSE CITY BUSINESS NEWS
By David Coonrod, columnist
In the ever-evolving scene of the commercial real estate industry, adaptability and foresight are paramount. As we delve into the status of the commercial real estate sector, several key trends and challenges come to light, shaping the way forward for investors, sellers and buyers alike.
One prominent issue facing the market is the shortage of inventory, particularly in flex space – a versatile blend of office and warehouse/industrial facilities. This scarcity is notable in regions like Grand Traverse County, where development trends are shifting southward, underscoring a growing demand for such properties.
The past year has witnessed a significant transition from a seller’s market to a buyer’s market. This is reflected in the 44% drop in sales volume and the extended duration of days commercial properties spent on the market. Adding to those factors, we are starting to see that the interested buyers are struggling to make the financial numbers work based on the current selling prices coupled with higher interest rates. This shift highlights a crucial need for sellers to recalibrate their pricing strategies, which will positively affect the financial viability of potential deals.
Compounding this challenge is the impending maturity of commercial mortgages. Moody’s Analytics reported that $182 billion in CRE loans across all property types are expected to mature in 2024. We could see a rise in delinquent loans this year as current owners will not be able to afford refinancing their debt at today’s interest rates, which could be as high as double their current rate. These factors add pressure on sellers to reconsider their asking prices and explore alternative approaches to facilitate transactions in a changing economic landscape.
Among these changes, commercial Realtors play a pivotal role in guiding clients through the complexities of pricing and market dynamics. Ethical considerations mandate realistic listing prices based on recent comparable sales – a practice essential for fostering transparency and trust in client relationships. It’s not merely about listing properties but strategically positioning them to attract genuine interest and secure successful transactions based on current market conditions.
Office space, once a cornerstone of commercial real estate, is experiencing a
Commercial RE’s Future
How to minimize risk as the market transitions
notable slowdown, especially in the leasing market. Downtown Traverse City alone has approximately 115,000 square feet of vacant office space available for sale or lease. This stagnation can be attributed to the paradigm shift induced by remote work and hybrid office models, prompting employers to reassess their spatial requirements.
The dilemma arises: what to do with these underutilized office spaces? Some innovative solutions have emerged, with sellers and landlords repurposing these areas into shared spaces catering to short-term leases and for various events. From photo shoots and corporate gatherings to social functions and creative ventures, this adaptive reuse model breathes new life into otherwise dormant properties.
As the demand for traditional office space wanes, exploring adaptive reuse and redevelopment opportunities can breathe new life into under-performing properties. Converting vacant offices into mixed-use developments, residential units or community spaces not only revitalizes neighborhoods but also aligns with evolving market preferences and sustainability goals.
As the commercial real estate landscape continues to evolve, stakeholders must embrace innovation and flexibility to thrive in
this dynamic environment. Adapting properties to meet evolving market demands, whether through repurposing or strategic redevelopment, presents opportunities to unlock hidden value and address shifting consumer preferences.
Furthermore, collaboration between industry players is vital for navigating these changing times. Commercial Realtors, investors, devel-
Identifying emerging growth corridors, transit-oriented developments and mixed-use neighborhoods with access to amenities can mitigate risk and maximize returns in a competitive market landscape.
opers, and local authorities must work handin-hand to identify emerging trends, address challenges and capitalize on opportunities for sustainable growth and revitalization.
Looking ahead, proactive measures such as diversifying portfolios, leveraging technology for market analysis, and embracing sustainable practices will be crucial for resilience in the face of economic fluctuations. By staying attuned to market shifts and adopting a forward-thinking mindset, stakeholders can position themselves for success in an ever-changing commercial real estate landscape.
At the end of the day, the old adage still rings true: location, location, location. Location remains a critical factor influencing the success of commercial real estate investments. Identifying emerging growth corridors, transit-oriented developments, and mixed-use neighborhoods with access to amenities can mitigate risk and maximize returns in a competitive market.
Partnering with an experienced and qualified commercial Realtor to help you navigate these changing factors can help put you on a path to ensuring the success of your commercial real estate goals.
David Coonrod is a commercial REALTOR® at Three West Commercial in Traverse City. He has more than two decades of small business ownership and CRE experience.
TRAVERSE CITY BUSINESS NEWS MAY 2024 15
THE HOUSE WINS
Real estate pros stay passionate in a changing market
By Ross Boissoneau
Real estate is a challenging business, made even more so by the recent court ruling regarding buying agents and commissions. While that plays out and everyone gets used to the new normal, business goes on as usual. Realtors – those agents who belong to the National Association of Realtors – have to keep up with all the changing rules and regulations, all while helping their clients deal with purchasing or selling what is typically their most valuable asset.
Here are four of them who work in the industry, providing advice and expertise on both the residential and commercial side.
For some, real estate is something they gravitate toward as a second or third career. Not for Ted Schweitzer.
“I got my license before I graduated from USC,” he said.
That and the southern California lifestyle suited Schweitzer well. He traveled a lot, mostly for windsurfing competitions, and saw many different places. He noticed the different architecture styles and considered the field, as well as taking classes in urban planning. He ended up in the advertising and marketing arena, and he and his partner were both working from home.
While visiting Michigan, his husband’s original home state, they came to the area and loved what they saw. With a passion for wine and food, they moved to the area, bought acreage and planted a vineyard. He says his varied background and the fact he’s lived in various
places helps him connect with his clients, whether they’re moving across town or looking for a vacation home to escape the heat and congestion of urban areas such as Dallas or New York.
“I focus on Old Mission Peninsula and downtown,” he said. “You can’t be everywhere.”
He also concentrates almost exclusively on residential.
“I don’t do commercial, I refer that out. Given that we had a vineyard (which they sold three years ago), I got a big education into farmland, and I can do that too. I’ve sold quite a lot of vineyard property. Because of the vineyard I learned a lot about the types of people looking for that. It’s a unique buyer to purchase a home and vineyard,” he said.
Schweitzer says like so many others, he had a surplus of potential buyers due
to the pandemic. He says construction of new homes is helping to meet the demand.
“New developments help. As far as Old Mission Peninsula, second- or thirdhome buyers are not concerned about acreage,” he said, nor are they bothered by homes in higher-density areas or developments.
“It’s a whole new buyer,” he said. He says the location still matters, even on the peninsula.
“(It) depends on where they are in their life chapter. First time (buyers) stay close to town. Those looking to step up are willing to go further out, but with children there has to be a balance. Then a two-income couple with no or older kids – they want their dream home, on the water or water view. They’re willing to go farther from town. Others are looking for a quiet, pastoral setting,” he said.
16 MAY 2024 TRAVERSE CITY BUSINESS NEWS U N IQ U E Your one-of-a-kind life, our one-of-a-kind guidance. Financial security from generation to generation. TRAVERSE CITY REAL ESTATE
TED SCHWEITZER Real Estate One
MIKE ANNELIN
Century 21 Northland
Mike Annelin didn’t set out to be a Realtor.
“I was thinking about law school,” he said.
So what happened? He decided he didn’t want to be part of an adversarial process and instead wanted to work in a field where everybody could go home at the end of the day feeling they’d been successful.
“What I didn’t like was it (law) was a win-lose scenario,” he said. “This way, both parties leave happy.”
He’s now in his 19th year.
“I enjoy working with people a lot. This business allows – requires – that. You have to be willing to work (with others) and with integrity, have other agents trust you,” he said.
Indeed, that’s one of the things that sets the field apart from other industries. Realtors don’t really have control of what they’re selling/representing and they have to make nice with their clients and the agents representing potential buyers, as well as the reverse.
Did he ever regret the decision to forego law school?
“The first year was a loss. The next year I made a little money. The third year I made enough I could justify staying in the business,” Annelin said.
Those first years were tough, but since he didn’t have children and his wife was working as a teacher they were able to make it.
“I had a lot of family support,” he said.
Anything else?
“I had the gumption, the motivation,” he said. “I grew up here and had a good sphere (of friends and acquaintances). I still have that today, but I also have knowledge.”
He said among the lessons he’s learned is the fact that every deal is different, and working with clients and circumstances that are constantly changing both stimulates him and provides him with valuable experience.
“Experience has a lot to do with the number of transactions, and not one is like another. I work with Realtors who may have been doing it 40 years, but are you full-time?” he said.
He said the current market is a challenge, due to the tight inventory of homes for sale, increased interest rates and the recent court decision regarding commission structures. While he says the latter currently leaves things up in the air, with no one sure exactly what it will mean, he sees the first two as variables which will always be in flux.
“Demand for our area is really high,” said Annelin. “My opinion (on inventory) changes by the week. With interest rates, they go up, then go back down again and buyers come out of the woodwork.
“That’s what I know today. I don’t know what will happen.”
TRAVERSE CITY BUSINESS NEWS MAY 2024 17 REAL ESTATE
Jennifer Hastings is a transplant from Baltimore, where she originally got into real estate. But it wasn’t the thrill of marketing and selling houses that initially drew her to the field.
“In the 90s I got involved with restoring depressed communities, bringing back beautiful neighborhoods,” she said. She worked with a local Realtor to help sell the properties that were being refurbished.
“That’s
At the same time, she was using her entrepreneurial spirit and dedication to martial arts in another arena. She opened a martial arts studio, which became an official USAT/AAU Olympic Sparring Training Center.
Like others, she visited the area and fell in love with it. Not to sell real estate, but to retire, after dedicating over 20 years to her business, athletes and the sport of Taekwondo.
So, how did that work out? Not so well, in that she connected with a mentor who told her she should consider selling real estate. Given her prior experience – “I loved seeing the process and seeing people benefit,” she said – it didn’t take too much to convince her.
That and the fact she was bullish on her new home area.
“I grew up on Chesapeake Bay and thought nothing was more beautiful. When I arrived here … I was blown away,” she said.
As a lover of water sports and the outdoors, she saw northern Michigan as the perfect place to call home, but it wasn’t just the area’s lakes and hills that drew her.
“The people are friendly, the shops are cool, the vibe is awesome,” she said. “I fell more and more in love with it.”
Hastings founded and leads Blue Lakes Real Estate Group, the regional partner for Key Realty. She’s paying it forward as she oversees all Key agent activity in the Traverse City market and serves as a mentor for both new and seasoned agents. She says that helps keep her at the top of the game as well.
“If you want to be good at this job and provide the best service, not just keep up, you have to study and live and breathe the information,” she said. “I enjoy watching people understand how they can leverage their real estate, leverage the equity in their home. That’s what intrigues me.”
18 MAY 2024 TRAVERSE CITY BUSINESS NEWS by the week. With interest rates, they go up, then go back down again and buyers come out of the woodwork.
what I know today. I don’t know what will happen.”
JENNIFER HASTINGS Key Realty REAL ESTATE Thank you, Northern Michigan! We’ve clinched 5 spots among the top 25 agents remax-bayshore.com
Unlike the others profiled here, Stiebel isn’t trying to help people find their next dream home. He works the commercial side, though in the past worked in residential as well as commercial.
His interest stemmed from searching for a storefront for his retail operation, and deciding he’d rather pay a mortgage than rent. Plus he discovered having a tenant made for a good income stream. That experience intrigued him.
“I got into the brokerage to learn the business for myself,” he said.
He did both residential and commercial work, but decided to concentrate exclusively on the latter. They’re really two separate businesses, he says, with different clientele, different marketing avenues and different needs for clients, from leasing offices to warehouse space to buying buildings for income.
“It’s more analytical, less emotional,” said Stiebel.
He said the clients’ needs dictate the approach. In that regard, his mindset is most like that of residential Realtors, determining what they really want and need, which aren’t always the same. If someone is interested in commercial real estate, Stiebel says the first thing he asks is what their goals are. For those looking to purchase a commercial building as an investment, there are various types of buildings: multi-family, industrial, retail. For those with their own business, is it the right time to purchase a building? Do they want a tenant?
Then he suggests they talk with other professionals in a position to provide advice and answers, including real estate agents but also their attorney, accountant, banker, financial advisor – even environmental companies that might provide insight on the property they’re considering.
“The market depends on the property – Loopnet, Craigslist, the commercial board of Realtors. Sometimes it’s just a small single office, and Craigslist is a great start. A triple net lease with a high cap rate, that’s (likely) Loopnet,” he said.
He says the pandemic caused a shift in the commercial market locally.
“There are more small businesses and remote jobs,” he said, which led to a demand for smaller spaces at the expense of larger ones. “Small office spaces, such as for one person, have become more popular.”
Stiebel remains enthralled with the business after 22 years, the majority of it dealing strictly in commercial real estate.
“I haven’t looked back,” he said. “The last five years have been exhilarating. I like being the trusted advisor, helping people. I love commercial.”
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TRAVERSE CITY BUSINESS NEWS MAY 2024 19 REAL ESTATE
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PROPERTIES THAT POP
Recent listings feature views and unexpected locales
By Ross Boissoneau
No matter how much the real estate market fluctuates, there are always some interesting places for sale. Homes boasting incredible views, commercial properties with unique features, even vacant land with that perfect mix of rolling hills, open meadows, and wait – is that a babbling book meandering through it?
You get the point. Every year, the property listings in the region include a dozen or more that stand apart, just different enough to catch the eye. One caveat: This isn’t all the cool properties, of course – for that you’re on your own. And caveat number two: While these were all active listings as of this writing, you know how quickly the real estate market in this area can change. See sentence #1.
Note: MLS numbers are for Aspire North Realtors.
MLS #1919742
$489,900
A new home, right where you wouldn’t expect to find it. This striking modern home includes three bedrooms and two and a half bathrooms, and is located right next to the former Old Kent/Fifth Third Bank on Eighth Street just west of Garfield Avenue. So yes, it’s relatively close to everything, from downtown to the Northwestern Michigan College campus, restaurants (Centre Street Café, Rounds, Edson Farms) to the TART Trail. The bank’s parking lot has been converted to a newly installed fenced-in backyard, and the home includes a full, unfinished basement with an egress window for future expansion.
RESTORED GLORY
MLS #1912528
HISTORICAL BEACHSIDE STORE
MLS #1920905
$2,299,000
MLS #1912604
$1,565,000
History and a working business and a stylish home? Yes, please. Built in 1905 by William Cary Hull, son of Oval Wood Dish Co. founder Henry Hull, it fell into disrepair over the years. New owners completely restored it from 1999 to 2003, and today it is a working B&B with nine guest rooms, and two apartments over the carriage house, plus a ballroom used to host wedding receptions and the like. It has a tea room license so it can serve lunch in the elegant wood-paneled main floor dining room. Still not enough? Convert the lower level of the carriage house into event space or more units.
$4,249,500
The longtime hardware store at 11738 S. Lake St. in Empire is typical of such small-town stores from decades past. The real fun is the historic livery barn on the northeast corner of the property. Both were built about 1900. While the store has since been renovated, not so the barn; its clear-span upper level is testament to creativity and solid construction. With 7,400 square feet there’s plenty of room for just about anything. The 5.34-acre parcel also includes an 8,400 square-foot pole building, and it’s all just a five-minute stroll from the beach.
This equestrian farm on 48 acres is a horse lover’s dream. Start with the 25,000 square-foot Morton main building with 33 horse stalls. Inclement weather? No problem –there’s a large indoor riding ring and an indoor viewing room. Outdoors there’s an even larger riding ring, 11 paddocks and seven with runs. You can even hold your own show, as it has hosted numerous events over the years. Oh, and for the two-legged occupants, the 1,260 square-foot ranch has two bedrooms and two bathrooms.
20 MAY 2024 TRAVERSE CITY BUSINESS NEWS
230 Wellington St., Traverse City
1026 E. Eighth St., Traverse City
11738 S. Lake St., Empire
HEART OF DOWNTOWN
7347 S. Stachnik Rd., Maple City
REAL ESTATE
LOVER’S HOME
HORSE
REAL ESTATE: TOP REALTORS/COOL PROPERTIES
PRIVATE BEACH DWELLING
MLS #1920546
$2,100,000
Take a walk on the boardwalk leading from the sprawling five-bedroom, four-bath home to the sandyfrontage on Lake Michigan. There’s plenty of privacy on this wooded two-acre parcel loaded with trees, with wood details to match indoors on the walls, ceilings and trim. The abundant windows and sky lights keep it light. Outdoors features a multi-level deck and an extensive boardwalk to the fire pit area and 100 feet of private beach.
MLS #1907092 $950,000
Just your basic two-bedroom, two-and-a-half-bath home with 9,000 square feet. Wait, what? That’s right, this historic Beulah landmark offers a plethora of work/live/rent options. Originally a granary, its hillside location offers sweeping views of Beulah and Crystal Lake. Since its tenure as a granary, it’s served as an antique market and a wine-tasting venue. The possibilities of its seemingly endless interior – retail? Airbnb? restaurant? – remain nearly endless as well.
8750 SE Zubal Lane, Fife Lake
MLS #1918786 $420,000
LIGHTS, CAMERA, ACTION!
9812 Honor Highway, Honor
MLS #1919419; $595,000
One of a kind? Not quite, but the Cherry Bowl is iconic, and with the owner retiring it’s a chance for someone else to become the curator of the region’s only outdoor movie theater. The Cherry Bowl opened in 1953 and has since served thousands of movie-goers eager to see the latest blockbuster or classic cartoons. The owner has decided it’s time for someone else to pop the popcorn, show the movies and run the operation. While the number of drive-ins has tumbled from over 4,000 to a shade more than 300 nationwide and a paltry 10 in Michigan, they remain a draw. Don’t worry, it will open Memorial Day Weekend and will be showing flicks this summer while seeking a new owner. And that special someone can avail themselves of other opportunities on the 10-acre site, such as adding a stage
TRAVERSE CITY BUSINESS NEWS MAY 2024 21
4140 Peninsula Dr., Frankfort
BEULAH LANDMARK
7300 Crystal Ave., Beulah
8750 SE Zubal Lane, Fife Lake MLS #1918786 $420,000
MANISTEE MAJESTY
You can almost cast for rainbow, brook and brown trout from the sunroom of this property. Sure, there’s a three-bedroom home with a stone fireplace and cathedral ceilings and more, but that’s all secondary to the moving water of the mighty Manistee. Drink in the views of the moving water from the house or saunter down to the fire pit area to enjoy the 741 feet of frontage. Bonus: state land and trails galore are just up the road.
LIGHTS, CAMERA, ACTION!
9812 Honor Highway, Honor
MLS #1919419; $595,000
One of a kind? Not quite, but the Cherry Bowl is iconic, and with the owner retiring it’s a chance for someone else to become the curator of the region’s only outdoor movie theater. The Cherry Bowl opened in 1953 and has since served thousands of movie-goers eager to see the latest blockbuster or classic cartoons. The owner has decided it’s time for someone else to pop the popcorn, show the movies and run the operation. While the number of drive-ins has tumbled from over 4,000 to a shade more than 300 nationwide and a paltry 10 in Michigan, they remain a draw. Don’t worry, it will open Memorial Day Weekend and will be showing flicks this summer while seeking a new owner. And that special someone can avail themselves of other opportunities on the 10-acre site, such as adding a stage for concerts, plays or other fun endeavors.
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PURE
Much Ado About Nothing?
Local Realtors dispute disruption of industry from recent ruling
By Art Bukowski
A whole new world in real estate? Drastically reduced commissions? The end of buyer’s agents? Maybe, but don’t count on it.
Despite attention-grabbing headlines and speculation, many local real estate professionals don’t expect a whole lot to change in the wake of a much-publicized lawsuit against the National Association of Realtors (NAR).
The class-action lawsuit accused NAR and several large brokerages of conspiring to inflate agents’ commissions. When the NAR settled to the tune of $418 million in March, it agreed to change some of its longstanding rules.
The big change is that compensation for buyer’s agents can no longer be specified within a widely used property listing portal known as the multiple listing service, or MLS. Another change requires the buyer and their agent to have a signed contract, which in most cases will spell out the agent’s compensation as agreed upon by both parties.
For years, the seller and their agent would specify how much of the total commission tied to a property sale would be offered to the buyer’s agents, and that amount was specified in listings in the MLS. Though always subject to negotiation, the total commission (which normally ranges from 4-6%, depending on property) was split evenly between the buyer’s and seller’s agents.
Critics accused that setup of artificially inflating commissions and being unfair to buyers in particular, as they had no control over their agents’ commission. Some national analysts believe the new rules – set to take hold as early as July – will reduce commissions by allowing buyers to negotiate better deals with their agents. It’s also been suggested that sellers may no longer offer buyer’s agent compensation at all now that it’s not required to be listed in the MLS.
But that’s the rub: Sellers never were required to offer the buyer’s agent a cut of the commission in the first place, nor does the new rule change prohibit them from offering it. And even if sellers shift away from the practice, local insiders don’t expect quality buyer’s agents to work for a whole lot less than they’re getting now, much less free.
you’re worth,” said Kim Pontius, CEO of Aspire North, northern Michigan’s largest real estate association.
Sellers’ choice
Ultimately, the amount of disruption caused by these rule changes will depend on how many sellers decide to abandon the long-standing practice of offering a cut of the commission to buyers’ agents. And as of now, no one can say for sure how many will.
“When the dust settles, and you’re
“When the dust settles, and you’re pulling a report a year from now, what’s the percentage of the homes sold that still had the buyer side fee, and what’s the percentage that didn’t?
That’s going to be the big stat.”
– Bart Ford, regional vice president, Coldwell Banker Schmidt
pulling a report a year from now, what’s the percentage of the homes sold that still had the buyer side fee, and what’s the percentage that didn’t?” said Bart Ford, regional vice president at Coldwell Banker Schmidt. “That’s going to be the big stat.”
be eager to show a home. More agents mean more potential buyers, which in turn leads to increased competition and a higher sale price.
“Do I think there will be more sellers that may not offer (buyer agent commissions) in the future? Yeah, I do. Do I think the majority of sellers won’t offer it? I absolutely don’t, because I don’t think it’s in a seller’s best interest,” said Megan Luce, broker/owner at Century 21 Northland in Traverse City. “If you reduce the buyer pool on your property, it just lowers your price. We had a huge slew of listings just go on the market, and every seller I’m aware of is allowing us to offer it.”
Mike Annelin, an agent with Century 21, agrees. Not only is offering the standard buy-side commission a great way to more get eyeballs on your listing, he says, but it helps ensure the buyer has the professional representation required for a smooth transaction.
“I’m a pretty heavy listing agent, and certainly going to still encourage my sellers to offer it,” he said. “It’s a great incentive that helps make sure that we get the house sold, and it also ensures that buyers have representation so we don’t have a conundrum on the other side.”
“If I perceive that you’re going to give me the best value and you’re going to represent me as a consumer and do a damn good job of it, I’m going to pay you what
Brokers and agents who spoke to TCBN for this story said they will still strongly advise home sellers to offer commission to a buyer’s agent. Why? It’s the best way to ensure those agents will
Things could indeed get tricky in situations in which sellers don’t offer buyers agent commission, particularly for the buyer agents themselves. Do they get an hourly rate or flat fee from their buyer to cover their time? Do they even offer to show homes that don’t have the com-
24 MAY 2024 TRAVERSE CITY BUSINESS NEWS REAL ESTATE
Ford Annelin Pontius
mission? How will buyers come up with the money up front? Will things fall into a pattern, or will every buyer’s agent do things their own way?
“They’re all independent businesspeople, so they can do what they want to do provided it’s in alignment with what their broker is willing to put up with,” Pontius said.
If push comes to shove, some buyer’s agents will almost certainly offer rock-bottom commissions in an effort to out-compete other agents. But Pontius and others say they believe the end result will likely be fewer overall agents in the industry, not universally reduced commissions. The best agents will stick around and the not-so-good ones will wash out.
“You’re going to have the really good agents getting better and staying with the industry, really promoting their value in terms of the experience and the professionalism that they offer, and then you’re going to have people getting out of the business because they can’t compete in regards to providing value,” said Craig Lively, owner/ broker at RE/MAX Lighthouse in Petoskey.
“I don’t think people (offering 1%) are going to last long.”
More than just paperwork
Annelin said. “I can’t do twice the work.”
The second is that buyers without a professional by their side could save money up front, but pay for it in the long run.
“Too many people think that a realtor’s value is just in finding the property…but it’s so much more than that,” Luce said.
“The value is with the consultation work, the title work, things like that. I can’t tell you how many times I’ve had agents catch (expensive) errors that the lender didn’t catch or the title company didn’t catch.”
Lively says agents add a ton of value by doing “a hundred different things” for their clients, many of which those clients aren’t even aware of. The positive in all of this, Lively says, is that it’s going to force buyer’s agents to work even harder for their clients and better explain the services and value they provide.
“Do I think there will be more sellers that may not offer (buyer agent commissions) in the future? Yeah, I do. Do I think the majority of sellers won’t offer it? I absolutely don’t, because I don’t think it’s in a seller’s best interest. If you reduce the buyer pool on your property, it just lowers your price.”
- Megan Luce, broker/ owner, Century 21 Northland
Some have suggested the change could lead more buyers to forgo an agent altogether in an effort to save money. With that comes an entirely different can of worms, insiders say. The first potential problem is that those people will get overwhelmed and lean on seller’s agents for assistance.
“Buyers will just be calling the listing agent for help on every house, and I’ll tell you what – I’m not doing both sides,”
“We’ll make sure that our buyers are educated in every aspect of the entire process,” he said. “It’s going to require us to step up our game to perform a little bit better for our buyers.”
Pontius agrees, saying that buyers agents are already starting to “pay really close attention to how they do business” as they represent their clients.
The NAR settlement now requires the buyer to have a signed contract with their agent, another item that was previously recommended but didn’t always occur. Luce and Pontius say they are glad to see it now be mandatory.
“It’s going to force agents to sit down and talk about value and whether or not (they are a good fit) for a client,” Luce said. “And then if they decide to work together, there’s no gray area for the buyer – the agent is working 110% for the client.”
TRAVERSE CITY BUSINESS NEWS MAY 2024 25 Luce
Lively
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NMC Marine Technology students conduct a mapping activity as part of a laboratory class on a shipwreck
BOTTOMS UP
Great Lakes bottom mapping could boost local, regional economy
By Art Bukowski
It’s not a stretch to say we know more about the surface of the moon than we do about the bottom of much of the Great Lakes.
Even in our modern world, with reams of information at our fingertips, much of the existing data about the Great Lakes’ depths, bottom composition, structure and more was gathered decades ago using imprecise methods. Some of it is virtually nonexistent, comprising nothing more than a depth reading taken at some point in the early 20th century.
This data has significant implications for fisheries, transportation, environmental protection, marine archaeology and much more. Gathering and making use of it could have profound effects in how we interact with this globally unique natural resource in the decades ahead, particularly as efforts toward building a “Blue Economy” gain momentum.
“The Great Lakes is the largest glass of drinking water in the world, serving 40 million people,” said Hans Van Sumeren, director of Northwestern Michigan College’s Great Lakes Water Studies Institute. “And we have billions of dollars in fisheries and maritime trade. How do we manage and sustain an economy tied to the Great Lakes without the basic data?”
NMC is a lead partner in an initiative called Lakebed 2030, which strives to ramp up high resolution mapping of Great Lakes bottomlands. As of now, about 15% of the lakes have been mapped, up from as low as 5% when the initiative began a few years back.
TRAVERSE CITY BUSINESS NEWS MAY 2024 27 EDUCATION/ TRAINING
in West Grand Traverse Bay.
NMC is a lead partner in an initiative called Lakebed 2030, which strives to ramp up high resolution mapping of Great Lakes bottomlands.
“It’s always been the goal to have 100% mapped by 2030, but even if we got to 75% by then, it would be pretty incredible,” Van Sumeren said.
High-resolution imaging of the lakebed will “empower the Great Lakes community to make policy decisions, use the Great Lakes sustainably, and undertake scientific research that is informed by a detailed understanding of the Great Lakes lakefloor,” according to Lakebed2030 documents.
Such imaging will allow for the visualization of very small items on the lake bed, both man-made and natural. As
just one of many examples of that data put into action, Van Sumeren cites the deepwater sculpin, a small fish that is of tremendous importance to the Great Lakes ecosystem by serving as food for
native predators like lake trout.
The sculpin spawns in extremely deep water in a certain type of habitat that was only recently identified on a deepwater survey. Being able to locate chunks of that
habitat through high-resolution mapping can lead to better protection of critical breeding zones and an overall healthier Great Lakes ecosystem because of it.
“If we can image it through high resolu-
28 MAY 2024 TRAVERSE CITY BUSINESS NEWS
EDUCATION/TRAINING
showing resolution of current data. ®
Map
tion mapping, and if we understand that these are areas of importance, then we can prioritize them,” Van Sumeren said.
As another example, current and high-resolution bottom data could be used to improve shipping routes, particularly through shallower areas. Even miniscule changes could result in substantial reduction of fuel use over time and increase overall shipping efficiency.
The data even has direct implications on land, Van Sumeren says. Detailed studies of the bottom in nearshore environments can help predict potential problems with erosion on the shoreline, allowing municipalities to safeguard against costly incidents.
Gathering the data
Aside from gathering high-resolution data in a variety of ways, the initiative also looks to catalog the information for shared use by a variety of stakeholders across various organizations and industries. The technology needed to complete a large amount of lakebed mapping is already used by members of the public, particularly fishermen, but the data never leaves their boats.
“We have great stuff on our personal boats, including fish finders that are now very advanced. The problem is none of that data is shared. It’s not recorded, stored, and then archived into a format that you and I can use,” Van Sumeren said. “We have to get all that data shifted into some shared repository.”
And while crowd-sourced bathymetry is likely to play some role in this effort – consumer sonar companies are in the testing phase of facilitating this process – deliberate work by researchers in both manned and unmanned vessels will be key to completing the project.
“All of this stuff is evolving from you and I on a boat to nobody on a boat,”
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Van Sumeren said. “These autonomous ships can go out and do this on their own…they’re smart, they’re simple, they’re very green, powered by wind or solar.”
The Lakebed2030 team sourced price estimates from three marine surveying organizations to get a price tag for the project, and the projected cost ranged from $130-187 million over several years.
“We need a focused, funded mapping campaign to meet the goal, and that’s really where that Great Lakes Mapping Act (comes into play),” Van Sumeren said.
The Great Lakes Mapping Act of 2024, introduced by U.S. Congresswomen Lisa McCLain (R-MI) and Debbie Dingell (D-MI), is a bill that seeks $200 million in federal appropriations to fund the Lakebed2030 project. It was introduced in January and must clear all legislative hurdles.
It’s important to note that not all bottomlands are considered of equal priority. More attention (in terms of mapping detail and/or frequency) is likely to placed on certain areas.
“In deeper waters, in very benign environments, the resolution can be coarser. It will still be of much higher value than what we have now,” Van Sumeren said. “As you progress towards shore, the need for higher resolution of the refinement the ability to do science or knowledge-based decision-making on that data becomes more important.”
NMC at the forefront
NMC, via the GLWSI, offers a bachelor’s degree in marine technology. Students in that program, which was launched in part to address the demand for surveying skills and the shortage of survey technicians in the marine mapping industry, have been actively involved in Lakebed2030.
The Great Lakes Mapping Act of 2024... is a bill that seeks $200 million in federal appropriations to fund the Lakebed2030 project.
Students have been out on various mapping efforts themselves, including areas of Grand Traverse Bay that have never been mapped at high resolution before.
“Last summer, we were the first college or university anywhere in the country to submit those collected data to what’s called the national repository, and (the National Oceanic and Atmospheric Administration) made a big deal out of it,” Van Sumeren said.
And while pitching in and helping with Lakebed2030 is exciting and admirable, it’s also giving students the real-life skills they need to be marketable after graduation.
“They get multiple job offers and are immediately employed, and starting salaries are up to around $115,000 now,” Van Sumeren said. “This work is very much in demand.”
Students go around the world to work – Van Sumeren remains in touch with one who shipped off to Switzerland – but the hope is that enough will stick around
and contribute to the local economy as companies in the marine technology realm locate here.
“If we look at it from an economic and business perspective for our region, we want to provide a fantastic workforce and serve as a conduit to all the industry partners who do this type of work,” Van Sumeren said. “If the mapping act gets approved, the companies that do this in the ocean have already told me they’ll create satellite offices in Traverse City.”
NMC also hosts the Lakebed2030 conference each year (the first was 2019, when the initiative began). Among other items of discussion, stakeholders from around the country come to review the latest technology and how it might be applied to the mapping effort, strategize how best to proceed and take stock of what’s been accomplished thus far. This year’s conference will be in September.
For more information, visit lakebed2030.org.
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PRIME Time:
New designation means big money for Career-Tech Center’s manufacturing programs
By Craig Manning
A $300,000 windfall, a strengthened bond between local education and local industry, and a boon for employers in Traverse City’s manufacturing sector: A recent award could bring all these to the Northwest Education Services Career-Tech Center and the region.
The North Ed Board of Education has voted to accept a potentially ground-breaking designation from the Society of Manufacturing Engineers (SME) Education Foundation, called SME PRIME.
SME is a Michigan-based nonprofit that has been working since 1932 to “accelerate widespread adoption of manufacturing technologies and build North America’s talent and capabilities.” Its PRIME (Partnership Response In Manufacturing Education) designation “partners private industry with academia to build custom manufacturing and engineering programs in high schools across the country.”
Schools designated with SME PRIME status receive considerable funding for equipment, curriculum development, teacher training, student scholarships, and extracurricular activities, all aimed at helping those schools better address the talent development needs of the manufacturing industry.
Pat Lamb, principal of the Career-Tech Center (CTC) and North Ed’s assistant superintendent of career and technical education, says the designation will ultimate
ing programs.
According to Lamb, North Ed’s CTC is one of 16 U.S. schools to receive the designation this year. Approximately 110 schools across 23 states are enrolled in the exclusive program, including around 50 in Michigan.
The PRIME program has been on North Ed’s radar for years. Lamb says the CTC previously applied earlier in the decade, but didn’t get it. This year, though, the school had a big champion in the form of Bill Myers, CEO of Traverse City-based manufacturer Promethient.
“Toward the beginning of the school year, Bill called me and asked me if we were familiar with this opportunity,” Lamb said. “I went back and found the letter of denial that we got a few years ago, which encouraged us to apply again. But this time, I think Bill’s connections and support were a big, big reason our application was successful.”
Myers says he is “thrilled” the PRIME program is linking up with the CTC, noting that the designation “will further their ability to offer strong educational pathways for manufacturing careers.”
One unique aspect of the program that both Lamb and Myers highlight is its adaptability. Rather than offering every enrolled institution a one-size-fits-all approach, the SME PRIME program sends representatives to each designated school to take stock of their unique needs. It also surveys local industry players to gauge
ROCKIN’
information and formulates a customized plan to elevate its manufacturing programs and make them more suited to the needs of industry.
“The PRIME program will enable the development of high school curriculum tailored for the needs of our local manufacturers,” Myers explained. “It’s unique because it helps launch the curriculum and fund the purchase of equipment, but it also can provide resources to sustain and evolve the program over time. To be clear, this is a terrific win for both students and manufacturers in the Grand Traverse region.”
Per Lamb, the gears are already moving for PRIME to transform the CTC and its programs. Since being notified of the award a month ago, the CTC has hosted SME representatives, who toured the school and took notes about its facilities, equipment and programs.
“They were blown away by what we have and by the opportunities that already exist here,” Lamb said. “They really felt like we could do a lot with this money going forward, in part because our equipment needs are different than what they’ve typically purchased for schools. We have some of the better equipment already, so they were looking at even more sophisticated things that they could give us. For example, I know they were looking at 3D printers, precision measuring equipment and robotic arm systems.”
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multiple local businesses that submitted detailed responses. He’s hopeful the feedback will help make the CTC a stronger partner in training the manufacturing professionals of tomorrow so they are ready to step into local jobs.
“We already try to base everything we do off of what the local region is looking for,” Lamb said. “How can we train students in things that will meet the needs of our local industry when they graduate? SME PRIME will help us do that better.”
When will the PRIME money start making an impact for CTC students? Lamb says the surveys are already underway, and once the feedback is in, SME will work with North Ed to finalize a list of equipment and curriculum investments. The goal, Lamb expects, will be to get everything purchased and put in place early this summer. That schedule would allow time for CTC staff to get trained on any new equipment in July or August, in time for the start of a new school year in September.
As for the specific programs that could see changes, CTC’s initial application for PRIME focused on four of the school’s offerings: the engineering academy, precision machining, robotics and automation, and welding.
But Lamb expects even more.
“After visiting, SME sees needs in all of those programs, but they also went through our power equipment and auto tech programs,” Lamb notes. “So, it’s pos-
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NMC’s University Center adapts to education in a post-pandemic world
By Art Bukowski
Nearly three decades in, Northwestern Michigan College’s University Center is as active as ever, even if shifting patterns in education continue to drive change.
The University Center (UC), nestled between Cass Road and the south end of Boardman Lake, is a physical and programmatic partnership between NMC and several Michigan universities that allows local students to obtain degrees from those universities after starting their education at NMC.
The main UC partners are Grand Valley State University, Central Michigan University, Davenport University and Ferris State University, which combine to offer nearly 40 bachelor’s and master’s degrees that can be earned through in-person learning at the UC with varying degrees of online components. Michigan State University also offers two certificates.
Students obtain an associate degree from NMC first, with credits that then transfer seamlessly to one of the partner institutions.
The numbers fluctuate, but up to a few hundred students per year earn degrees through one of the UC partners.
“Our original goal hasn’t really changed, and that’s to provide undergraduate and graduate opportunities to students up here in the Traverse City/north-
partner universities right out of the gate, says Jason Slade, NMC’s vice president for strategic initiatives. The goal is to make it less like two different college experiences and more like a single unified path.
“The Boardman loop has been an absolute boon to us... We’re getting so much drop-in traffic, which we never had before.”
- Jason Slade, NMC’s vice president for strategic initiatives
west Michigan region on a local level,” said Zach Whitaker, campus director at founding UC partner Davenport. “That way students can stay in their communities and get their education.”
Among relatively recent changes at the UC is a proactive approach to connecting those students with advisors at the
“(The university partners) have all changed their model in that not only are they delivering a degree pathway, but they actually act as an advisor from day one… and have the relationship up front,” Slade said. “You’re seeing a lot more synergy between NMC and the partners, and that’s on purpose…we pride ourselves in making the process as seamless as possible.”
A very big jump towards seamlessness
might happen in the coming years as NMC looks to bring the partners from the UC to its main campus at the base of Old Mission Peninsula. Such a move could allow for better flow of information and ideas between NMC and its partners while increasing exposure and awareness for a well-established UC that still strives for it.
Ben Maurer, Dave Roelofs (job supt.) and Paul and Brian Maurer
“We’re going through a master planning process, and we’re looking at bringing those partners onto main campus to get them closer to our students, which is critical,” Slade said. “If we’re running a business or computer program, how do we have it so that from day one, a student’s NMC classroom is adjacent to those partner universities?”
In the meantime, the UC has reaped benefits from its exposure via the TART Trail’s recently completed Boardman Lake Loop Trail. The trail, a hit with local walkers, runners, cyclists and more, now sends thousands of people a month only a few feet from what was once a remote facility.
NMC and partner school officials have taken advantage of this by putting prominent window graphics and signage
32 MAY 2024 TRAVERSE CITY BUSINESS NEWS EDUCATION/ TRAINING
on what used to be the all-but-invisible back of the building, where a busy trail now runs.
“The Boardman loop has been an absolute boon to us,” Slade said. “We’ve been doing some pop-up and open house-type things, and people have told us they didn’t know we were there, didn’t know we offered this…for them to be able to just walk in right off the trail and get info has been really good for us. We’re getting so much drop-in traffic, which we never had before.”
‘Beyond committed’ to the region
The scene in education is changing, and the UC and its partners are doing their best to keep up. Remote/online learning began to gain ground before the pandemic and ramped up drastically afterward, changing the game for what it means to be a student.
But that doesn’t mean less value in the UC, which serves as a place to not only receive instruction – most of its classrooms are still active places of learning, even post-pandemic – but also for students who do most of their classwork online to interact with university faculty and staff in person for educational or administrative reasons.
Ferris, for example, recently designated its operations at the UC as one of its five student success hubs throughout the state. The idea is to provide a little slice of cam-
pus to students everywhere, particularly in “very strategic geographical areas” like the Grand Traverse region.
“We want to meet students where they’re at…so whether they’re online, in person, in a hybrid flex model of both, they have a resource to go to,” said Zachary Whitaker, Ferris’ campus director at the UC. “They can learn how to apply, request financial aid, review scholarship opportunities…we want to be their cheerleader every step of the way.”
GVSU is the largest operator at the UC, offering programs in healthcare, education and more. Since the pandemic they’ve leaned heavily on hybrid learning in which students gather in a classroom to receive instruction from onsite staff or Zoom instruction from professors downstate, with professors rotating between locations for maximum accessibility.
“As so many institutions are moving online, we recognize that students are still looking for some face-to-face to go with that online experience,” said Shannon Owen, who heads up GVSU’s northern Michigan operations. “Students still say: ‘I need accountability, I need someone to help me through this, I need study groups,’ and that’s what we’re trying to create here.”
Beyond instruction, the university partners feel that operations at the UC and elsewhere in Traverse City are important from a business perspective. Not only does it give them a presence in a rapidly growing region, but it also allows them to deliver the best value by digging in and figuring out how to best serve the community.
“There’s no way to effectively facilitate the needs of a particular region without being really intentional about having a physical presence and having direct access
to the people who are part of that community,” said Kaleb Patrick, CMU’s interim vice president of innovation and online. “We can’t imagine uncoupling from that region…we’re beyond committed to it.”
Along those lines, the UC partner schools are doing their best to offer programs that meet professional and community needs here in northern Michigan. As just one example, both CMU and GVSU are now offering programs in which paraprofessionals and other teacher assistants can readily attain teacher degrees.
Owen says it’s a need in the region.
“I think that’s the real value of being here in this region – we don’t want to bring a Grand Rapids program and plant it here,” Owen said. “We really want to identify what are the needs in this community and then how can we best meet those needs.”
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By
What if our talent retention and attraction strategies looked and felt more like sports recruiting?
Imagine the “signing” of highly skilled interns and apprentices. Hiring managers/scouts spot talent from among the ranks of the season’s trainees and make full-time job offers for high-demand jobs with family sustaining wages – score!
Talent retention and attraction efforts should function more like a professional sports team development strategy. We commonly refer to those just starting their careers and those highly trained in the workforce as “talent,” so it’s long past due. Let’s collectively start building capacity and structures to foster talent development programs, just like the big leagues, who invest time and resources in the minor leagues.
Michigan’s Creative Coast, a program of Traverse Connect, has been engaging in highly successful outreach efforts for our region as the place to not only make a career, but join a community and build connection.
Curated resources include: a job board, the ability to upload resumes independent of specific postings shared with subscribing employers, quarterly events, storytelling social media, and links to multiple compelling resources.
Hometown team identity matters in recruiting. Pride in the work and pride in the place weigh heavily in decisions about where to start one’s career.
We at 20Fathoms saw this zeal to move home with our Internship Matching Program, too. Students and recent graduates said it was challenging to find postings for internships in our area. If our region is an intern’s first choice seeking a hometown placement, we need to ensure we have the openings ready to receive and retain them or they will have to go elsewhere.
Statistically one of the strongest predictors of where a working aged person will locate after graduation from college will be where they had their first paid work experience in their field. Therefore, we must work together to create more of these opportunities here in northwest Michigan.
PLAY BALL!
Intern recruiting strategies should mirror professional sports for maximum retention
There are successful examples of well-designed internship programs in all sizes of employers in our area. The internship will have a point person who knows the winning playbook. Ideally, that person is close to the work the individuals are in training for to ensure all these key elements are executed.
Additionally, there should be a well-crafted job description which is referred to during check-in chats, an assigned mentor, a specific assignment of at least one meaningful project with significant ownership of and chances to observe. A well-developed intern would even participate in some strategic-level meetings. If an organization wants to score extra points – have the intern present to a work group either the project they worked on or an evaluation of their experience, complete with recommendations on improvements. Sometimes even a rookie can teach all-stars new plays.
Time, capacity and money are legitimate barriers to employers creating these rookie opportunities. Significant obstacles to be sure, but there is support from several resource partners. 20Fathoms can help guide employers to internship fund-
ing resources, like Michigan Economic Development Corporation’s STEAM Ahead program (formerly STEM Forward). Employers complete an application during the cycle, enroll their interns and receive wage reimbursement.
This fiscal assistance can be particularly critical to support entrepreneur startups in our region. Daryl Staveness, Ph.D., founder and CEO of ExciPlex, Inc. said, “The program undoubtedly brought value to our R&D team. Our intern did not just contribute; they measurably sped up the project progression. In an early-stage startup, every employee needs to make an impact on multiple levels. Getting a talented and motivated intern can amplify all those efforts. Our intern was such a good fit and so impactful, we brought him back on for another internship in the fall. With the funding support, it is a no-brainer.”
Northwest Michigan Works! has an apprenticeship team that literally walks employers through the process. They handle much of the paperwork and offer case management support to the apprentices. There are a broad range of eligible occupations recognized by the
U.S. Department of Labor. Completers of these nationally recognized, post-secondary, industry-recognized credentials have a 90% retention rate.
The perception that investing time and resources into entry-level employees may lead to them taking those skills to leverage a trade to another team simply isn’t backed up by the stats. Turns out there’s such a thing as loyalty to stay with the home team who believed in you.
If this region’s resources raised and matriculated someone, we should have the hometown advantage. Are we making every possible community effort to ensure our minor league players/trainees are getting a shot on our rosters? Do we have enough internships and apprenticeships to meet the interest of those who want to work here? Based upon the number of interns looking for local opportunities – we’re falling short. If we don’t create opportunities for these rookies, it will be our local employers who will be left on the sidelines.
Gretchen Swanson, SPHR, SHRM-SCP, is the director of workforce development for 20Fathoms. She can be reached at Gretchen@20Fathoms.org.
TRAVERSE CITY BUSINESS NEWS MAY 2024 37
EDUCATION/ TRAINING
Gretchen Swanson, columnist
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By Nick Nissley, columnist
The secret to our success in northern Michigan has always been the power of our partnerships to envision and create a better future, together.
In 1951, community members challenged the idea that higher education can only be done downstate. They built the state’s first true community college, Northwestern Michigan College (NMC.) That entrepreneurial spirit is in our DNA. Today, I see that entrepreneurial-mindedness and innovative action on full display as we collaboratively create the Freshwater Research and Innovation Center (FRIC).
While still in the planning stages, this enterprise embodies our collective vision for the Traverse City region to be recognized as a leader in water-related innovation, capable of attracting top talent and investment.
The Freshwater Research Innovation Center is a transformative endeavor that promises to usher in a new era of opportunity and innovation for northwest Michigan. Understanding the critical role water plays in our lives and economy, the center’s objectives are ambitious yet achievable: to convert water education, research and technological innovation
Freshwater Research Innovation Center Heralds New Era For Northwest Michigan
into tangible jobs and new businesses. This initiative is a testament to what we can achieve together, with an approach rooted in collaboration. The project draws upon NMC’s rich legacy in water-related education, particularly through our Great Lakes Water Studies Institute, which marks its 20th anniversary this year. The Water Studies Institute itself was a community-supported undertaking, thanks to a $1 million gift from Rotary Charities of Traverse City in 2004.
The center also maximizes the strengths of our co-founding member, Discovery Center and Pier, and the expertise and advocacy of our partners, Traverse Connect, Michigan Technological University and 20 Fathoms. By partnering with industry leaders, government bodies and academic institutions, we’re building an ecosystem that nurtures innovation and accelerates the journey from research to real-world solutions. This collaborative approach is critical for scaling businesses and cultivating a workforce that is ready to meet the challenges of tomorrow equipped with the skills and knowledge to drive sustainable growth, creating high-quality STEM jobs
that will attract talent and investment to our region.
It’s already started, in fact. Last year NMC partnered with Canada’s Aqua Action nonprofit to host the 2023-24 AquaHacking the Great Lakes Challenge, a competition for start-ups seeking to solve critical freshwater issues, like PFAS and microplastic pollution, and advance climate adaptation. Ten finalists, including one company from Traverse City, Wave Lumina, visited here in March. The winner of seed funding will be named later this month.
Really, though, it’s the region that wins when we bring events like this here.
The potential to put northern Michigan squarely at the center of the blue tech innovation revolution is gaining attention and support from the state and federal government including more than $21.8 million in funding to date. Our partners are also shaping a memorandum of understanding with the state of Michigan to activate northern Michigan’s blue tech economic sector. This will allow us to more effectively access state resources.
The purpose will be to leverage co-in-
vestment and programming resources to ultimately grow blue tech jobs in the northwest Michigan region. This funding will support our vision for The Freshwater Research and Innovation Center to house almost 40,000 square feet of technology-focused labs and offices. Unlike a traditional research facility, this center will contain the support necessary to incubate and accelerate early start-ups businesses.
I invite you to envision with me the impact of the Freshwater Research and Innovation Center. This is not just NMC’s project; it is our collective endeavor. With the planning phase underway, our excitement grows daily. I am optimistic about the future we are building together. This center is a strong example of our potential to achieve greatness when we unite behind a common goal. Let’s embrace this opportunity to leave a lasting legacy for generations to come. The journey ahead is promising. Together, we will redefine what is possible in water research and innovation, ensuring a brighter future for all.
Nick Nissley, Ed.D., is the president of Northwestern Michigan College.
TRAVERSE CITY BUSINESS NEWS MAY 2024 39 EDUCATION & TRAINING
EVEN KEEL
Great Lakes Water Studies Institute one of NMC’s crown jewels
By Craig Manning
In 2004, Rotary Charities of Traverse City handed a $1 million check to the Great Lakes Water Studies Institute, a then-fledgling new venture at Northwestern Michigan College (NMC), to help the program find its footing.
Fast-forward two decades, and the Water Studies Institute is one of the crown jewels of NMC, with accomplishments that include discovering shipwrecks, aiding in efforts to map the Great Lakes, launching revered degree paths that boast 100% job placement, and an influential perch in the local effort to establish a freshwater research and innovation center.
To mark the 20th anniversary of the Water Studies Institute, the TCBN sat down with Hans Van Sumeren, the program’s director and chair, to find out how we got here and what comes next.
In 2003, NMC broke ground on its Great Lakes Campus, the now-iconic 75,233 square-foot facility on the shores of West Grand Traverse Bay that houses the Great Lakes Maritime Academy, the Great Lakes Culinary Institute, and the Water Studies Institute, among other programs and operations. Construction on that building predated the official establishment of the Water Studies Institute.
According to Van Sumeren, the program was already gestating even before that $14 million facility sprung up along Traverse City’s most well-traveled corridor.
“There was all kinds of activity that got the institute started, even before that building went in,” Van Sumeren explained. “All sorts of conversations, strategies, community engagement partnerships – they were all flourishing before
the building even opened.”
Per Van Sumeren, those early conversations included a cadre of water-centric leaders from throughout the region and beyond, including the Rotary Water Committee, the Watershed Center Grand Traverse Bay, Michigan Sea Grant, and Cornerstone Maritime Heritage Alliance. With NMC’s Great Lakes Campus coming into focus, there was a push to create something in the new facility that would focus on study, understanding, and conservation of the area’s lakes, bays, and waterways. Those desires led to the creation of a freshwater studies program.
Though Van Sumeren didn’t come on board as the director of the Water Studies Institute until 2008, his interests in the matter – both as a marine engineer and a Traverse City native – meant he was keeping a finger on the pulse from afar as the program took form.
“I was certainly involved,” he said. “At the time the institute opened, I was still at the University of Michigan (as associate director of its marine hydrodynamics laboratories), but we had been involved in positioning buoys out in Grand Traverse Bay to do mineralogic and oceanographic information collection, and that involved working with the folks at the institute.”
Another partner in those early U of M/Water Studies Institute collaborations was DTE Energy, which was at the time sponsoring a program called the Freshwater Institute for Teachers.
“That was a program positioned to help create better understanding, better stewardship, and a better education approach in K-12 for the Great Lakes and for fresh water,” Van Sumeren said. “It was all
about engaging teachers from around the region and around the state and helping them to get hands-on experiences in the various components of the watershed. And then we would also supply them with what they needed to create curriculum plans for their students (around freshwater subject matter).”
The Freshwater Institute for Teachers program ultimately became one of the hallmark beginnings of the Freshwater Studies Institute, Van Sumeren says. Also around that time, the institute became a key player in the disposition of the Boardman River dams, a trio of old hydroelectric structures situated along the Boardman that had become a topic of considerable debate in northern Michigan.
While the dams still generated some power, critics argued they were impeding the hydrological cycle and overall health of the Boardman watershed. All three dams were ultimately removed between 2012 and 2018.
“A lot of the early work of the institute was being the neutral convener for that very difficult conversation that occurred throughout our region,” Van Sumeren recalled of the dam debate.
For all that it was doing around teacher development and local water dialogues, what the Water Studies Institute didn’t have in those early days was any actual degree pathways.
“We started differently than your typical college or university program,” Van Sumeren explained. “We started with the community outreach component and then built the academic pathways out of that, whereas usually you see the academic pathways building toward the community engagement.”
40 MAY 2024 TRAVERSE CITY BUSINESS NEWS
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Eventually, the evolution did occur. Courses offered as part of the Freshwater Institute for Teachers were retooled for traditional NMC learners, and interest in water-centric coursework started to build among the student body. Then, with Van Sumeren’s arrival in July 2008, the entire operation expanded.
“Once I got here, the biggest gap that I saw was that we still had no academic degrees,” he said. “And so, the first step, within a month of me starting here, was to rectify that. NMC leaders really encouraged me to challenge some of the institutional traditions about not only how we did things, but also what we could do, and part of what I came up with was the idea of creating a degree – the freshwater studies degree – that really did not exist anywhere in the nation at the time.”
The program sparked interest immediately and grew rapidly, soon forging partnerships with several four-year Michigan universities and motivating then-NMC-president Tim Nelson to hand a recently retired Maritime Academy vessel called the Northwestern off to the Water Studies Institute.
Getting the boat and unlocking the opportunity to take students out on the water planted the roots for the institute’s next degree pathway. In 2009, freshwater studies students found the shipwreck of the Lauren Castle, a 93-foot-long steel tugboat that had sunk in the 400-foot depths
of the Grand Traverse Bay in November 1980. The story put the Water Studies Institute on a path toward the global respect it enjoys today.
“That story went out worldwide,” Van Sumeren said of the Lauren Castle tale.
“It got a lot of people to look at us and ask, ‘What is this little college in the northern part of lower Michigan doing on Lake Michigan?’ And that’s when employers started calling about their needs for these particular types of jobs: hydrographers, and data analysts for marine environments, and so on.”
NMC’s bachelor’s degree in marine technology took form based on those conversations, with Van Sumeren and the rest of the Water Studies Institute team calibrating the curriculum based on specific needs of industry employers. Today, the program boasts a 100% in-industry job placement rate for graduates, with most grads fielding multiple job offers from all over the world.
Twenty years in, the Water Studies Institute is continuing to grow and evolve.
In recent years, the program has taken up a leadership role in Lakebed 2030, an effort to map the full extent of the Great Lakes floor by the end of the decade.
And last year, the institute added another degree pathway: the water quality and environmental technology (or “WET tech”) degree, a program “designed to meet the growing workforce needs for supporting the restoration and remediation of impact-
ed groundwater and other environmentally compromised sites across the State of Michigan, throughout the Great Lakes region, and around the United States.
There’s more growth to come, too: Right now, NMC and the Water Studies Institute in particular are key partners in a plan to build an 85,000-square-foot, $60 million freshwater research and innovation center in Traverse City. Once completed, the facility will include research labs, classroom and seminar space, a startup incubator, and more. Van Sumeren says the project will inevitably elevate everything the Water Studies Institute
has been doing for the past two decades, enhancing learning opportunities for students, creating more locally based job opportunities for alums, and generating more energy around the entire freshwater studies ecosystem.
“The innovation center is going to allow us to continue what we started 20 years ago, but at levels that bring so much more collaboration and focus toward Traverse City,” he said. “It’s really an absolutely incredible pathway we’re on, and I often have to stop and pinch myself sometimes and think about it all, as in ‘How the heck did this all happen?!’”
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Novotny said as the industry changes, Northshore Exteriors will do so as well to better serve our clients. “One thing you can always count on is change. Things are always changing, from building materials and codes to the weather. We’re dedicated to staying on top of things for our customers, and making sure we are offering the best products at the best prices. We are always maintaining the highest standards of professionalism and keeping our entire workforce up to date on certifications, application processes and how to work with new materials so we can provide the highest quality workmanship for our clients.”
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TRAVERSE CITY BUSINESS NEWS MAY 2024 45
Can Munson Remain Independent In A Wave of Michigan Hospital Mergers?
By Rick Haglund
Michigan is in the throes of hospital merger mania as health systems combine to gain market power and boost finances in a state where population growth has been stagnant for decades.
Among them are Grand Rapids-based Spectrum Health, which in 2022 acquired Royal Oak-based Beaumont Health to form the state’s largest health care system. Detroit-based Henry Ford Health announced last year it would take over Ascension Michigan’s 12 metro Detroit hospitals and its Genesys Hospital in Grand Blanc.
And in March, Midland-based MyMichigan Health purchased Ascension hospitals in Saginaw, Standish and Tawas City, giving the eight-hospital MyMichigan Health a lock on much of the rural central and northeast Michigan health care market.
The wave of merger-and-acquisition activity raises questions about whether Munson Healthcare, an eight-hospital, $1.8 billion health care system, will get swept up by a larger health system seeking a beachhead in the vibrant and growing Grand Traverse region with some 540,000 potential patients.
Not if Ed Ness, Munson’s chief executive officer, has anything to say about it.
Ness says Munson’s strategy is to remain independent through a major, $50 million restructuring undertaken last year and partnerships with other health systems for patient care and business services.
“We want to make sure we’re around for another 100 years,” he said, adding that there are no discussions occurring with other health care organizations about possible mergers.
Munson opened its first permanent hospital 99 years ago in Traverse City. Experts say it has a good chance of remaining independent, but probably not for the next 100 years.
“The value of a hospital is a function of the market it serves and its share of the market,” said Rex Burgdorfer, a partner at Chicago-based Juniper Advisory, which advises hospitals on mergers. “Munson has most of those things going for it. It’s a very good market and Munson has developed a really good niche. I wouldn’t forecast that it’s imminent for them to do (a merger.)”
Munson had a dominant 52.2% hospital patient market share in the 24-county northwest Michigan market in 2022, according to a bond rating review last year by Fitch Ratings. McLaren Northern
Michigan in Petoskey significantly trailed Munson with a 14.6% market share.
Fitch’s latest rating on Munson’s bonds is AA, its second-highest rating, with a “stable” outlook. The rating and favorable outlook “reflect the strength of Munson’s market position and its leverage and liquidity profiles,” the credit rating agency reported last May.
Becker’s Hospital Review, a health care industry publication, last year included Munson in a list of 55 U.S. hospital systems with “strong operational metrics and solid financial positions.” The list was based on reports culled from three major credit ratings agencies.
And Munson Medical Center in Traverse City, Munson Healthcare’s flagship hospital, has consistently received a coveted “A” grade for safety and quality from independent watchdog The Leapfrog Group.
Alan Baumgarten, a Minneapolis health care consultant, says Munson’s market and financial strength could be “an attractive target” because of its valuable market niche and “fairly strong reputation for quality.” But the Biden administration could make it more difficult for a larger, outside health system to gobble up Munson because of concerns
that such a merger would raise prices to consumers, he says.
Cross-market mergers, where a health system acquires another hospital or system outside of its market area, have attracted little antitrust scrutiny in the past, Baumgarten says. But that could change under merger guidelines finalized last year by the Department of Justice and the Federal Trade Commission.
“These kinds of mergers that could increase market power to raise prices
46 MAY 2024 TRAVERSE CITY BUSINESS NEWS
Helen Osterlin was recognized as a Northwestern Michigan College Fellow in 1970. Photo provided by NMC.
HEALTHCARE
Ness
could be challenged in the future,” Baumgarten said.
A small number of studies show that cross-market mergers raise prices from 6% to 17%, often without a significant increase in quality, according to the Kaiser Family Foundation.
Burgdorfer says a potential merger partner for Munson could be the University of Michigan Health System, possibly through MyMichigan Health with which U-M has a business and clinical partnership. He cautions he is not predicting such a combination.
“Most experts believe academic medicine is the way of the future” for its innovation and quality of care, Burgdorfer said. “And U-M is seeking growth.”
Over the past several years, U-M has acquired Metro Health in Grand Rapids and Sparrow Health in Lansing. It raised eyebrows in March by purchasing part of the recently demolished Kmart headquarters building in Troy where it intends to build an ambulatory medical center.
Marschall Runge, CEO of Michigan Medicine, U-M’s hospital complex in Ann Arbor, said the purchase was part of U-M’s broader plan “to create a statewide network of care that allows Michiganders the ability to receive our world-class care close to home.”
A merger between Munson and neighboring MyMichigan Health, two similarly
sized health care systems, could fit into that plan, Burgdorfer says.
“It would not be dissimilar to Beaumont and Spectrum merging to become Corewell Health, but on a smaller scale,” he said.
Rural hospitals, especially, face serious costs pressures, including staffing and implementing new technologies. They
rural hospitals sometimes create animosity in the smaller communities because they often lose local services, such as heart and cancer treatment centers, that get consolidated at the larger systems, he says.
And prices for those services often go up.
Munson’s patient population is wealthier than those served by many rural hospital systems. Revenues from Medicaid
The wave of merger-and-acquisition activity raises questions about whether Munson Healthcare ... will get swept up by a larger health system seeking a beachhead in the vibrant and growing Grand Traverse region with some 540,000 potential patients.
also tend to have older, sicker patients that cost more to treat and don’t receive adequate reimbursements, forcing them to merge with larger systems.
A recent report from analytics and consulting firm Chartis found that half of all U.S. rural hospitals lost money last year.
“Medicare pays by diagnosis. You’re in trouble if you attract a lot of patients with relatively severe conditions,” said Daniel Montanera, a Grand Valley State University economist who specializes in health care.
But mergers between large systems and
and patients without insurance represented just 14.8% of total revenues in 2022, according to Fitch Ratings, which called Munson’s revenue mix “very good.”
Ness says Munson has lost money on patient care for the past two years, mostly a hangover from the 2020 COVID pandemic.
Its 2022 audited financial statement, the latest available, shows that Munson had an operating loss of $32.4 million on revenue of $1.3 billion for its fiscal year ending June 30. But that loss was erased by $58.7 million in government
COVID relief funding. Fitch Ratings said it expects Munson to become profitable again this year.
“Our goal is to break even this year,” Ness said. “We’re making a lot of progress on that with a lot of hard work.”
At the heart of Munson’s plans to remain a viable, independent health care provider is its three-year Regional Care Transformation Plan announced last September. The plan responds to a growing trend of more health care services being performed outside the hospital.
Under the plan, more complex inpatient procedures will move from Munson’s smaller hospitals to its Traverse City medical center. Its Gaylord and Cadillac hospitals will become regional hospitals while its remaining hospitals will focus more on outpatient care.
“Our goal is to make Munson Medical Center a regional referral center,” Ness said.
Munson will also seek to expand linkages with larger health care systems to provide clinical and business services, he says. It already has a variety of partnerships, including North Flight Aero Med with Corewell Heath, a collaboration with Mary Free Bed to provide rehabilitation services locally and a supply chain alliance with Trinity Health.
“We certainly need relationships with bigger organizations and we’ll continue to
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pursue them where they make sense from a clinical or business standpoint,” he said.
Munson also has been expanding into the Petoskey-area market largely controlled by McLaren. It acquired a primary care practice in Harbor Springs several years ago and last year bought a vacant Art Van furniture store, which Munson is transforming into an ambulatory medical center.
And it has been acquiring primary care and other physician practices locally to bolster its finances, a move that doesn’t sit well with some providers who themselves are trying to remain independent.
Jim Stilley, chief executive officer at Great Lakes Orthopaedic Center, says Munson is attempting to drive more business from private physician practices to its own hospitals and clinics, which doesn’t always benefit patients from a cost and safety standpoint.
“Munson is a great hospital,” Stilley said. “But our major philosophical difference with them is that certain things should be done at Munson and certain things shouldn’t be done there.”
Rather than acquiring and competing with physician practices, Stilley says Munson should ensure its future by partnering with organizations such as his 13-surgeon practice to provide the safest, most cost-effective services to patients.
“They should be coordinating care for
the community, not dictating care for the community,” he said. “It all comes down to control.”
Stilley says he thinks Munson is moving to a physician-employed model that cuts out independent providers.
Ness denies that.
“In our region we have a very successful model of employed and independent physicians,” he said. “That’s really a choice (physicians) make. We respect that and can make it work.”
Ness is no stranger to hospital merger controversies. He took over as Munson’s chief executive officer in 2010, just months after his predecessor began merger talks with what was then Spectrum Health.
But the merger blew up after the community revolted against it. Richard Witham, who with his wife and children donated $2.5 million to Munson in March to create the Witham Family Stroke Center, said he’s pleased the health system ended merger talks and is confident it can remain independent.
“I’m glad the community felt that way,” said Witham, who served for years as board chairman of the former Hackley Hospital in Muskegon, now part of Trinity Health. “Munson is such a significant organization now. Quite honestly, I think Munson is in a position where it’s highly likely to maintain its independence and go forward very well.”
MUNSON HEALTHCARE BY THE NUMBERS
• $1.8 billion in assets (2022)
• $1.3 billion in revenue (2022)
• Eight hospitals
• 694 licensed acute care beds, including 442 beds in Traverse City
• 7,500 employees
• 1,000 physicians
• 63 specialties
• Munson Medical Center in Traverse City recently became northern Michigan’s first certified comprehensive stroke center
One local business leader said he believes it is still beneficial to the region for Munson to remain independent nearly 14 years after the Munson-Spectrum merger was scuttled.
“Munson has done a great job in being proactive to modernizing its approach and adopting to a new reality in health care,” said Warren Call, CEO of Traverse
Connect, formerly the Traverse City Area Chamber of Commerce. “At the same time, they’ve done a very good job of building a strategy involving partnerships with other health care organizations.
“We’re excited about Munson’s Regional Care Transformation plan and hope that sets them up for success in the next 100 years.”
48 MAY 2024 TRAVERSE CITY BUSINESS NEWS HEALTHCARE
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COLD, COLD HEART
Meet the Traverse City startup using cold technology to revolutionize cardiac treatments
By Craig Manning
Half a million: That’s how many Americans undergo open-heart surgeries every year, according to the Detroit Medical Center.
At their best, those procedures can deliver genuine miracles, treating heart disease, repairing cardiac damage, implanting lifesaving medical devices, or replacing failing hearts entirely. But they also come with considerable risk, both on the operating table and beyond. In fact, according to the National Institutes of Health, 30-40% of patients who go through open-heart surgeries will develop post-operative atrial fibrillation (AFib), defined by the American Heart Association as “a quivering or irregular heartbeat, or arrhythmia (that) can lead to blood clots, stroke, heart failure and other heart-related complications.”
In total, AFib is a condition that affects some six million Americans and nearly 40 million people worldwide, per the Heart Rhythm Society. Worse, the Centers for
Disease Control and Prevention predicts that more than 12 million people in the United States will have AFib by 2030.
MediCool Technologies, a health-tech startup based in northern Michigan, is trying to solve the AFib crisis from a perch right here in Traverse City.
Meet Jeff Rynbrandt, CEO for MediCool and the company’s local presence. Under Rynbrandt’s leadership, MediCool Technologies is working on a prototype medical device that he says could potentially resolve AFib by applying cold temperatures to the heart.
“We know from a lot of clinical research – predating even our company –that when you apply cooling to the heart, you can slow things down,” Rynbrandt explained. “AFib, if you look at an EKG, it’s a rapid, quivering of the heart. It’s not really a full heartbeat, but it’s fast. So, we’ve known for years that you can stop the fibrillation with cooling.”
While MediCool’s other players live and work elsewhere – “My CFO is down
in Florida, and my head of clinicals is always traveling,” Rynbrandt said – MediCool has made a deliberate choice to base itself in northern Michigan.
The company is part of the 20Fathoms community, works closely with Boomerang Catapult, and has networked with the growing number of other health-tech startups that have made Traverse City their home in recent years.
Rynbrandt was behind the move to Traverse City. A Michigan native – he grew up in Okemos – he left the state after high school to enroll at the West Point Military Academy, and then to enlist in the Army. After getting out of the military, Rynbrandt got his MBA at Michigan State University, which he’s used to build a career in the medical device space.
Shortly after Rynbrandt joined up with MediCool – a startup spun out of the famed Mayo Clinic in Minnesota – the COVID-19 pandemic struck. Operations went virtual, and Rynbrandt became one of the many professionals to trade city life
for the charms of northern Michigan.
“We’d bought some property a little west of Traverse City 10-15 years ago, and started spending summers in northern Michigan,” Rynbrandt said of his family. “When the pandemic started, it was pretty early in my tenure at MediCool, and we were still really small and grant-funded at the time. We were all virtual, so I said to my wife, ‘Why don’t we move to where we want to be, instead of living where we’ve always had to live for work?’”
Fast-forward four years and MediCool is still rooted in Traverse City, even as it approaches a monumental milestone.
According to Rynbrandt, the company has spent the past eight years going through “all the required preclinical work” on its AFib treatment methodology, called “cool cardioversion.” Tests in non-humans and a small number of human patients have “shown a reasonable level of success,” spurring venture capital investment to fund “the production of a proper medical device, and a quality
50 MAY 2024 TRAVERSE CITY BUSINESS NEWS HEALTHCARE
system that we can take to the Food and Drug Administration (FDA) and say, ‘OK, now we want to go to the next level and do the most rigorous trial.’”
The trial will assess the feasibility of MediCool’s device for successfully treating AFib, and will ultimately decide what’s next for the company. For his part, Rynbrandt is optimistic about MediCool’s chances – not only to take the device successfully through the approval process, but also to get acquired by a larger healthcare enterprise.
When asked where the potential benefits of cool cardioversion lie, Rynbrandt points to the half-million Americans that go under the knife every year for open-heart surgeries. Currently, the most common course of treatment for a patient that develops post-operative AFib involves a drug with a low success rate and a specialized procedure called “electrical cardioversion” – a process of delivering shocks to the heart to correct the arrhythmia. The process is painful for the patient and comes with a long list of other drawbacks, on both sides of the doctor-patient relationship.
“For patients that have a post-op AFib, it adds four days to the length of their hospital stay, on average, and it’s associated with increased risk of stroke and increased mortality,” Rynbrandt said. “It also costs the hospital $7,000 to $10,000 a day that they don’t get to recoup, so that’s a lot of
money the hospital is losing.
“What we hope to offer is a solution where, by placing the device in the patient at time of surgery, then, if/when they go into AFib, we can cool the heart right away. Then, when they’re out of AFib, we turn the device off and take the device out, similarly to how chest tubes are pulled out of the heart, and the patient can go home as normal.”
Doing business in northern Michigan
Though not historically known for its health-tech companies, Traverse City has been growing a business sector in that category. This year, for instance, another locally based company called HealthBioAI entered its own FDA clinical trial for a potentially game-changing long COVID treatment.
Amidst the local growth, we asked Rynbrandt about the pros and cons of trying to solve a global health issue from smalltown northern Michigan.
“I’ve been in a non-office role for most of my career, so my view of location has always been that it’s just where you are,” Rynbrandt told the TCBN. “I don’t see location as an impediment. I’ll probably add one or two people to the team here in the next 6-12 months, and I’m not worried about finding people that want to move to northern Michigan. Because why wouldn’t you want to be up in Traverse City?”
“What we hope to offer is a solution where, by placing the device in the patient at time of surgery, then, if/when they go into AFib, we can cool the heart right away. Then, when they’re out of AFib, we turn the device off and take the device out, similarly to how chest tubes are pulled out of the heart, and the patient can go home as normal.”
– Jeff Rynbrandt, CEO, MediCool Technologies
In Rynbrandt’s view, “there’s no reason why you can’t build a medical device startup up here in Traverse City,” especially in the healthcare specialty MediCool Technologies is trying to revolutionize.
“We’re in the cardiac space, and being here in the Midwest, three of the top five heart hospitals in the country are also here,” Rynbrandt explained. “Mayo Clinic, the University of Michigan, and the Cleveland Clinic, they’re all right here. And as a result, the companies that will hopefully become my acquirers, almost all of them sit in the Midwest, too. So, to me, there’s no reason why startups like us
can’t come to this area, and grow or build a great company here, and offer successful careers for people in this area.”
The biggest challenge of running this type of business in Traverse City?
“Access to capital,” Rynbrandt said.
“Almost all the big venture capital firms sit on the two coasts. We’re trying to pull a little bit of that here, because selfishly, it’d be great to be able to say we funded it all out of the Midwest – and out of Michigan, if possible.
“I do think the echo system of funding is starting to grow here, but we’ll have to wait to see what happens.”
TRAVERSE CITY BUSINESS NEWS MAY 2024 51 HEALTHCARE
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FROM THE DESK OF...
Allison Beers, owner of Events North
By Art Bukowski
Allison Beers started Events North in 2008 after working for two of the largest meeting and event agencies in the world. She and her small but mighty team serve clients from across the country, providing engaging, well-organized and fun gatherings for corporate, nonprofit and private clients. She’s also a well-known face in the community because of her involvement in various groups, including the noon Rotary Club, where she served as president. If you have an idea for a future From The Desk Of feature, email abukowski@tcbusinessnews.com.
1. These are client files. I like to think I’m a green person, but I’m still a paper person. I need to look at it, write on it, take notes.
2. Paper and name tag samples (bottom right): We’re always looking at paper samples and linen swatches to make sure the colors match what we’re looking to do for our client. We also like to touch these things, so the samples are really important.
3. Program on computer screen: We’ve got a project management software we use called Monday.com. We actually live and breathe it. It’s all we ever need to do all in one spot, and it’s been our everything.
4. One of our employees years ago invented this concept. It’s called a jar of love, and you leave little love notes for each other, like ‘Girl, you crushed it last weekend, welcome back.’ We leave these little notes all the time.
5. I’m a proud Rotarian and extra proud to have led the club as president a few years ago.
6. Red stapler (under files): It’s Milton’s red stapler. If you know, you know.
7. The magic eight ball is how I make all my important decisions.
8. These are two programs that we’re working on, one is in London and another in Grand Cayman.
9. This is from our 10-year anniversary in 2018. Ten things we know after 10 years. Among these things is that we work with amazing vendors all the time and that work-life balance is important.
10. Smart Meetings magazine. You have to stay on top of the industry trends!
TRAVERSE CITY BUSINESS NEWS MAY 2024 53
4 2 5 7 6 3 1 8 9 10
‘IT TAKES A VILLAGE’
Mobile ATS unit provides critical care to rural communities
By Art Bukowski
One of the region’s most important beacons of hope for those struggling with drug and alcohol addiction is hitting the road.
Over the course of more than 40 years, Addiction Treatment Services (ATS) in Traverse City has helped thousands of people get help on their road to recovery. Though the roughly 90-person outfit is perhaps best known for its residential recovery home on Eighth Street, it offers multiple programs across several properties in the Traverse City area.
ATS has always served people from surrounding counties, but had barriers to providing assistance to that population. The largest by far is many people in the throes of addiction do not have adequate transportation, meaning getting to Traverse City for care can be daunting.
“There’s already a stigma associated with needing to get help for a substance use disorder,” said Paula Lipinski, CEO of ATS. “When you throw in having to drive 20 or 40 minutes, it just makes it that much more difficult.”
That’s why ATS recently rolled out a mobile unit that brings care to those in need. By meeting people in their communities, ATS leaders hope to make inroads into socalled “treatment deserts” in which inadequate access to care leads to much worse outcomes for those battling addiction.
“It’s so important to get out to these rural communities to give people a
chance, give them an opportunity to fight their disease,” Lipinski said. “These services will ensure help is available when needed most without barriers of wait times or pre-treatment requirements.”
The mobile unit, housed in a converted bus, has regularly scheduled (usually once per week) four-hour stops in Mancelona, Kalkaska, Cadillac, Benzonia and Manistee. And while it has medication and other forms of direct medical assistance, perhaps its largest benefit is the chance to forge relationships with people so they can start – and continue – the recovery process.
the road and into rural communities, Lipinski says.
“There are a lot of us here who came to work at ATS after working in those communities, and we still have connections to people out there who told us they need help,” she said. “We’re very much an agency that wants to be proactive, and we felt a responsibility, knowing that there’s no resources out there, to be as proactive as we can.”
Since launching less than a year ago, the results have been substantial. In Manistee County, Dawn Stefanski is a substance abuse counselor with the Manistee offices
“It’s so important to get out to these rural communities to give people a chance, give them an opportunity to fight their disease. These services will ensure help is available when needed most without barriers of wait times or pre-treatment requirements.”
– Paula Lipinski, CEO, Addiction Treatment Services
“People who are struggling with substance use disorder are not always knocking on our door to get help,” Lipinski said. “But we speak the language, we understand it, we fight stigma, we’re warm and welcoming.”
The program began in part because leaders at ATS heard a chorus of police officers, hospital and emergency room personnel, social workers and more asking them to get their services out on
of Catholic Human Services. The 31-year veteran of substance abuse services in that county says the area is severely underserved, and that ATS has now become one of the primary providers of care there.
“This has been a true blessing for members of our rural towns,” she said. “Without a team approach in a community such as ours, treatment services would cease to exist and overdose deaths continue to rise.”
Stefanski says she is is thrilled that ATS is now at the front lines in her community and hopes they maintain a presence there well into the future.
“ATS has filled a very needed and necessary role in our community, and in this process has likely saved many lives,” she said. “The old saying of it takes a village to raise a child kind of fits; it takes a team to raise a healthy community, and ATS is part of that in the Manistee and Benzie areas.”
Jeremy Cannon is chief nursing officer at Kalkaska Memorial Health Center.
Like Stefanski, he says the ATS mobile unit has provided a crucial layer of care for his community. This is particularly true for people who have been hospitalized but still require continuing, non-emergency care, he said.
“People in rural communities deserve access to high-quality health care, and the ATS mobile unit really allows that access point,” he said. “A lot of times when individuals are seeking treatment the first step is going to an emergency department… but that requires significant follow up. This mobile unit is a place where people can rely on follow-up access.”
Cannon is thankful that ATS is being proactive and allowing important care to flow to areas that need it.
“Recovery is a journey, and it takes a lot of people,” he said. “As a hospital that cares about the community, we’re really glad that we have other partners such as ATS helping to support some of these care delivery models.”
54 MAY 2024 TRAVERSE CITY BUSINESS NEWS
HEALTHCARE
Mobile program manager Jessica LaPan (left) and ATS Executive Director Paula Lipinski stand by the mobile unit.
TRAVERSE CITY BUSINESS NEWS MAY 2024 55 THREEWEST.COM (231) 929-2955 THREEWEST.COM (231) 929-2955 KEVIN ENDRES, SIOR, CCIMBILL SOMERVILLE KEVIN QUERY DAVID FROST CONGRATULATIONS! We’re honored to have four of the region’s top 10 commercial Realtors® on our team. We are Northern Michigan’s #1 Commercial Real Estate Brokerage.
By Andi Dolan, columnist
Navigating today’s intricate healthcare landscape poses significant challenges for consumers seeking prescription medications. Despite legislative efforts, notably the Consolidated Appropriations Act 2021 which aimed for improvements, policymakers clearly missed the mark as dissatisfaction remains widespread.
Six
FORMULARY FOR DISASTER
pharmacy
benefit managers control 96% of the prescription drug market
‘IT TAKES A VILLAGE’
Rising drug prices, opaque practices by pharmacy benefit managers (PBM) and barriers to access continue to permeate a complex and daunting environment at the expense of the consumer.
By Art Bukowski
Transparency and consumer advocacy are necessary elements that will promote positive change within this murky pharmaceutical maze. At the heart of this labyrinth lies the PBMs, a cornerstone component of the supply chain.
in 2019. Colossal amounts of money are exchanged annually within this industry as it continues to grow at a breakneck speed.
specialty drugs represent 50% of overall drug spend.
KEY INDUSTRY TERMS
Mobile ATS unit provides critical care to rural communities
One of the region’s most important beacons of hope for those struggling with drug and alcohol addiction is hitting the road.
Six PBMs control 96% of the prescription drug market. They are vertically integrated healthcare empires. Global market share is projected to grow from $540.32 billion in 2023 to $809.79 billion by 2030. Three of the largest are CVS, which reported $357.8 billion of revenue in 2023, Cigna/Express Scripts, which reported $195 billion, and Optum Rx, whose revenues were $116.10 billion.
Over the course of more than 40 years, Addiction Treatment Services (ATS) in Traverse City has helped thousands of people get help on their road to recovery. Though the roughly 90-person outfit is perhaps best known for its residential recovery home on Eighth Street, it offers multiple programs across several properties in the Traverse City area.
PBMs oversee various aspects of prescription drug benefits on behalf of health insurance plans and employers. They act as intermediaries between manufacturers, health insurers, pharmacies and patients. This includes bundled services such as developing formularies, processing claims, administering pharmacy networks, implementing utilization management (i.e. step therapies; prior authorizations) and providing clinical support services.
ATS has always served people from surrounding counties, but had barriers to providing assistance to that population. The largest by far is many people in the throes of addiction do not have adequate transportation, meaning getting to Traverse City for care can be daunting.
“There’s already a stigma associated with needing to get help for a substance use disorder,” said Paula Lipinski, CEO of ATS. “When you throw in having to drive 20 or 40 minutes, it just makes it that much more difficult.”
Where it begins
That’s why ATS recently rolled out a mobile unit that brings care to those in need. By meeting people in their communities, ATS leaders hope to make inroads into socalled “treatment deserts” in which inadequate access to care leads to much worse outcomes for those battling addiction.
“It’s so important to get out to these rural communities to give people a
Drug manufacturers undoubtedly play a crucial role in saving lives. The reality is, drug companies are also running a business – $6.88 billion U.S. dollars were spent in pharmaceutical advertisements in 2021. The Congressional Budget Office reported that the industry dedicated $83 billion to research and development
Enters the PBMs’ covert off-shore sister companies known as rebate aggregators. Manufacturers are pressured into providing rebates to ensure their products are placed favorably within the PBMs’ drug formulary. Implementing prior authorization requirements, setting the drug’s copay levels (tiers), PBMs prioritize formulary placement based on potential rebates, rather than the drug’s effectiveness.
chance, give them an opportunity to fight their disease,” Lipinski said. “These services will ensure help is available when needed most without barriers of wait times or pre-treatment requirements.”
The mobile unit, housed in a converted bus, has regularly scheduled (usually once per week) four-hour stops in Mancelona, Kalkaska, Cadillac, Benzonia and Manistee. And while it has medication and other forms of direct medical assistance, perhaps its largest benefit is the chance to forge relationships with people so they can start – and continue – the recovery process.
More opacity transpires when direct and indirect remuneration (DIR) fees are imposed on pharmacies within PBM networks. These fees are intended to recoup additional costs based on factors such as performance metrics, network management and rebate arrangements, yet DIR fees unfortunately leave the sickest citizens bearing the brunt of artificially inflated coinsurance and co-payments.
Other known practices such as spread pricing fuel profit and increase confusion. Spread pricing entails charging health plans or insurance companies more for prescription drugs than what PBMs reimburse pharmacies. The difference between what PBMs pay pharmacies and what they charge health plans is known as the “spread.”
the road and into rural communities, Lipinski says.
The concentrated power within this mammoth supply chain has become dangerously too vast to manage. It is imperative that citizens gain a greater understanding of what is happening through transparency and advocacy.
Where is the remedy?
“There are a lot of us here who came to work at ATS after working in those communities, and we still have connections to people out there who told us they need help,” she said. “We’re very much an agency that wants to be proactive, and we felt a responsibility, knowing that there’s no resources out there, to be as proactive as we can.”
AWP: Average wholesale price is a benchmark used in the pharmaceutical industry to determine the reimbursement rates for prescription drugs.
Stefanski says she is is thrilled that ATS is now at the front lines in her community and hopes they maintain a presence there well into the future.
DIR: Direct and indirect remuneration refers to a type of fee imposed by Pharmacy Benefit Managers on pharmacies participating in their networks.
“ATS has filled a very needed and necessary role in our community, and in this process has likely saved many lives,” she said. “The old saying of it takes a village to raise a child kind of fits; it takes a team to raise a healthy community, and ATS is part of that in the Manistee and Benzie areas.”
Formulary: A list of generic and brand name drugs covered by a health plan.
Since launching less than a year ago, the results have been substantial. In Manistee County, Dawn Stefanski is a substance abuse counselor with the Manistee offices
Advocating for reform in prescription drug practices emerges as the crucial first step. Change begins by amplifying voices and demanding accountability from industry stakeholders. Consumers can empower themselves by learning more about prescription drug pricing and lobbying policymakers for meaningful reforms while supporting organizations that champion healthcare affordability.
Consumers can get involved and learn more by going to these sites:
“It’s so important to get out to these rural communities to give people a chance, give them an opportunity to fight their disease. These services will ensure help is available when needed most without barriers of wait times or pre-treatment requirements.”
– Paula Lipinski, CEO, Addiction Treatment Services
• Families USA (familiesusa.org): A nonprofit focusing on healthcare advocacy, with a mission to ensure affordability and access to high-quality healthcare, including prescription drugs, for all Americans.
“People who are struggling with substance use disorder are not always knocking on our door to get help,” Lipinski said. “But we speak the language, we understand it, we fight stigma, we’re warm and welcoming.”
The program began in part because leaders at ATS heard a chorus of police officers, hospital and emergency room personnel, social workers and more asking them to get their services out on
Further barriers and ambiguity occur as PBMs are allowed to restrict networks, which mandate patients to utilize specific pharmacies to obtain their specialty medications. Such a practice limits patient options and could lead to extended waiting periods for medication delivery, especially for those residing in rural or under-served regions. Factoid: Expensive
• National Consumers League (nclnet. org): A nonprofit advocacy organization that focuses on consumer rights and protections. NCL advocates for policies that promote transparency, affordability, and safety in the prescription drug market.
of Catholic Human Services. The 31-year veteran of substance abuse services in that county says the area is severely underserved, and that ATS has now become one of the primary providers of care there.
“This has been a true blessing for members of our rural towns,” she said. “Without a team approach in a community such as ours, treatment services would cease to exist and overdose deaths continue to rise.”
Andi Dolan is the owner of Traverse Benefits, a local independent insurance agency advocating and providing health, life and disability solutions for employers, individuals and Medicare beneficiaries across northern Michigan.
Jeremy Cannon is chief nursing officer at Kalkaska Memorial Health Center.
Like Stefanski, he says the ATS mobile unit has provided a crucial layer of care for his community. This is particularly true for people who have been hospitalized but still require continuing, non-emergency care, he said.
List price: Also referred to as the wholesale acquisition cost or WAC, it denotes the manufacturer’s price for a drug or biologic, excluding any discounts extended to wholesalers, PBMs or other buyers.
OOP: Out of pocket.
Rebate: A concession provided by a drug manufacturer to an insurer or PBM; these discounts may be partially or fully passed on from PBMs to insurers.
“People in rural communities deserve access to high-quality health care, and the ATS mobile unit really allows that access point,” he said. “A lot of times when individuals are seeking treatment the first step is going to an emergency department… but that requires significant follow up. This mobile unit is a place where people can rely on follow-up access.”
Spread pricing: Involves a payment structure where a PBM reimburses a network pharmacy an amount less than what the insurer pays to the PBM for a drug, with the PBM keeping the difference as profit.
Cannon is thankful that ATS is being proactive and allowing important care to flow to areas that need it.
“Recovery is a journey, and it takes a lot of people,” he said. “As a hospital that cares about the community, we’re really glad that we have other partners such as ATS helping to support some of these care delivery models.”
Tier: A category of drugs within a formulary subject to a specific cost-sharing arrangement for plan enrollees; formularies typically have several tiers with different cost-sharing structures for each tier. Lower tiers require lower cost sharing.
56 MAY 2024 TRAVERSE CITY BUSINESS NEWS
HEALTHCARE
HEALTHCARE
Mobile program manager Jessica LaPan (left) and ATS Executive Director Paula Lipinski stand by the mobile unit.
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for Physical
Bailey’s Farms launches small-batch kombucha
By Kierstin Gunsberg
There’s a new brew sweeping the state, no I.D. required.
Traverse City-based Bailey’s Farm has released their version of the popular fermented tea beverage, available at hot spots like Dune Bird Winery and Kingsley Local Brewing.
Kombucha is packed with probiotics and antioxidants, and for consumers looking for a nightcap alternative, its alcohol content is so negligible that it’s considered non-alcoholic.
Farmsteading duo J.C. and Steve Bailey have been concocting their own blends of the fizzy stuff for years but this month they’re celebrating three years of brewing and bottling small-batch kombucha for retail under their Bailey’s Farms brand.
After initially joining Arrowhead Incubator, a nonprofit focused on empowering tribal community industries and businesses (Steve is a member of Grand Traverse Band of Ottawa and Chippewa Indians), products from the company’s kombucha line are already carried in more than 30 outlets across the region, including both Oryana locations, The Red Door Coffee House, and MAWBY Vineyards and Winery, plus dozens more locations downstate.
Coming onto the scene during 2021’s supply chain woes, the Bailey’s had a tough time sourcing everything from bottles to caps, but despite what they describe as a debut year of “nervous anticipation,” they were undeterred from their goal of creating health-forward products while minimizing their footprint.
All 14 of their handcrafted kombucha flavors start with northern Michigan’s own Light of Day double-certified teas (USDA certified organic and Demeter Biodynamic certified). The byproduct of the Bailey’s kombucha production goes right back to their farm in the form of compost and even feed for their goats, whose milk is the main ingredient of
their signature moisturizing soaps and lotions.
Bailey’s Farms also offers small batch honey from their apiary but the star of the show is their kombucha, which quickly found its base in the farmers market circuit.
Though their fruity blends – which include their newest flavor Bumble Blossom Jasmine and their bestseller, Hummingbird Nectar – can be found on tap and even used as unique cocktail mixers, J.C. says that an alcoholic version of their kombucha won’t be hitting their lineup.
“We made an intentional decision not to do that because we felt that there’s enough of that out there,” she said. “Our bigger mission is to provide a really good kombucha that people could enjoy for health reasons, not for wanting to drink.”
As for whether they’re planning to expand their market beyond Michigan, they say they’re hesitant to grow beyond their ability to deliver the quality that comes from being able to personally brew and taste test each 36-bottle batch.
Still, they do ship cases to their true-blue customers across the country, who just have to have their kombucha fix.
“It’s nice to know that when we were thinking we were on to something, that we were,” said Steve of the startup. “Without the support of our customers and people who are passionate about what goes into products, we wouldn’t be able to keep moving in a positive direction. We have a lot to be thankful for. ”
20Fathoms sponsors this column. Designated by the Michigan Economic Development Corporation as the Small Business Support Hub for Northwest Michigan, 20Fathoms is a nonprofit organization providing critical services for the region’s entrepreneurs. It specializes in accelerating the growth of innovative and scalable startups. Learn more at 20Fathoms.org.
TRAVERSE CITY BUSINESS NEWS MAY 2024 59
STARTUPS IN NORTHERN MICHIGAN THIS ARTICLE IS MADE POSSIBLE BY
Tonia Anglin Grandview Parkway 231.995.8710 TAnglin@ibcp.com NMLS ID: 401989 Marta Couturier Grandview Parkway 231.714.7309 MCouturier@ibcp.com NMLS ID: 533577 Tom Klinefelter Hansen Plaza: Suttons Bay 231.995.8712 TKlinefelter@ibcp.com NMLS ID: 564759 Tammy Ranger Eastern Sky Drive 231.218.1161 TRanger@ibcp.com NMLS ID: 685286 PUTTING OUR EXPERIENCE TO WORK FOR YOU! Together our team has over 100+ years of mortgage lending experience! With over 50 customizable mortgage options, we may be able to help find the perfect option for you. IndependentBank.com/mortgages MORE impact on people, LESS impact on the environment. env-arch.com 231.946.1234 10241 E. Cherry Bend Rd. Traverse City > We design the circumstances, objects and conditions that surround you. © Environment Achitects < live. > < work. > < play. > For news TraverseTicker.com For Traverse City area news and events, visit TraverseTicker.com
Photo courtesy J.C. and Steve Bailey
60 MAY 2024 TRAVERSE CITY BUSINESS NEWS TWIN BAY DOCKS AND PRODUCTS New Poly Furniture Line Constructed of recycled plastic All-weather durability • No rotting Resistant to cracking, splintering, and chipping • Easy to maintain UV protectant for color stability Designed and manufactured in Michigan by Twin Bay Docks and Products Explore furniture options and find your nearest dealer at twinbaydockproducts.com 231-943-8420 • twinbaydockproducts.com • 982 E. Commerce, Traverse City, MI - one of a kind luxury condo on East Bay - 3 bedroom, 2 bath, 2,300 sq feet - 297 ft of private East Grand Traverse Bay frontage with dock - open kitchen, dining and living room - large primary ensuite - heated garage with two parking spaces - panoramic water views - MLS # 1918568 - $989,000 For more information visit SergentSellsHouses.com ASSOCIATE BROKER Mental Health Awareness Month Lunchtime Virtual Education Series #TOOLS4RESILIENCE MAY 2024 | 12-1 PM Register here for any or all FREE webinars NORTH COUNTRY COMMUNITY MENTAL HEALTH 29 Managing Stress th 28 Finding Clarity to Navigate Multicultural Environments th 1 st Social Media and Mental Health 7 th Protecting Yourself Online 8 th Stories of Hope & Recovery: Lessons from Lived Experience 14 th There is No Expiration Date on Grief 15 th Somewhere Over the Rainbow: In Search of Health, Humor & Happiness 21 st Get Wise and Energize Your Eating 22 nd Practical Tools to Help Children and Adolescents with Complex Needs Every Tuesday and Wednesday in May!
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TRAVERSE CITY BUSINESS NEWS MAY 2024 61
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INDEPENDENT LIVING, ASSISTED LIVING & MEMORY CARE
Setting goals: The first step in creating an investment plan
We plan our weekends. We plan our weddings, careers, and futures. Planning not only helps set us up for successful outcomes in the future but can also help immensely in the present. It helps us define and refine our goals, align tactics, proactively address risks, and chart our progress.
Too often, however, the planning that could be the most valuable is overlooked. The same people who would not dream of embarking on a two-week vacation to Italy without an hour-by-hour itinerary may have just a basic outline of a plan for their retirement, which could last 20 to 30 years.
What drives this disconnect?
Many of us are intimidated by the thought of putting our plans on paper. Others fail to grasp the value of the planning process. One common mistake is thinking your situation is very simple and straightforward so you don’t need a plan.
This misconception can stem from a misunderstanding of exactly what constitutes a plan and an assumption that planning ought to be comprehensive enough to meet the needs of the rest of your life. Planning should meet you where you are and reflect your current situation. Your investment goals and your plan will evolve with you over time.
Effective plans are generally the ones that take your individual circumstances and those of your family into account. They should start with your goals and objectives and may encompass planning for investments, retirement, taxes, and wealth transfer.
As you map out your goals, consider the following:
• Are you thinking of starting a business?
• Are you exploring buying a second home or is there another big purchase that you would like to make at some point in the future?
• Do you want to travel extensively after you retire?
• Have you promised your children or grandchildren that you’ll help pay for their college education or for them to study abroad?
• Do you need to build or rebuild an emergency fund for unforeseen expenses?
• Is there a community program or charitable cause you’d like to support more robustly?
One way to express your goals is to think of them as your own personal story that you are intending to write. For example:
“Now that I have my first grandchild, I’d like to save enough to help me comfortably retire so I can spend more time with my family. My spouse and I have had a lifelong dream of road tripping across the country once I retire. As we get older, I want to build up a savings fund for medical needs and start a legacy fund to help financially support my children and my grandchild.”
Or:
“I am passionate about supporting local businesses and have a goal of opening my own restaurant that partners with local vendors. I want to have enough money to start the business while helping grow our nest egg in case we need to dip into it while we are starting out. If we’re successful, I hope to expand the business by opening an additional location.”
After identifying your goals, the next step is to understand how much money you will need for each goal. This information will help you determine your saving and investing priorities, your time horizon for each goal, and the amount of investment risk you’re comfortable taking to achieve each goal.
There’s no one-size-fits-all answer to achieve each goal. Life throws curveballs and your priorities may change; however, people who have a plan may be more prepared for life’s events and feel more comfortable that their goals will be met.
62 MAY 2024 TRAVERSE CITY BUSINESS NEWS THE MARKET 10850 East Traverse Highway Suite 5575 Traverse City, MI (231) 922-4213 www.JBWMG.com INVESTMENT INSIGHT FROM THE LOCAL PROS Wells Fargo & Company and its affiliates do not provide tax or legal advice. This communication cannot be relied upon to avoid tax penalties. Please consult your tax and legal advisorsto determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your tax return is filed. This advertisement was written byWells Fargo Advisors and provided to you by JULIAN | BLACK Wealth Management Group. Investment and Insurance Products are: • Not Insured by the FDIC or Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. ©2020-2023 Wells Fargo Clearing Services, LLC. All rights reserved. CAR: 0623-02522
Wealth
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>> BANKING
Honor Bank announces the following personal news:
1 - Chauntel Lorenz has been promoted to branch manager of the Traverse City Garfield Avenue location. Lorenz started her career at Honor Bank in 2020 as a customer service representative. Lorenz is also a graduate of Honor Bank’s Rising Leaders program.
2 - Chase Pasicznyk has been promoted to branch manager of the Lake Ann location. Pasicznyk started his career with Honor Bank in 2022 as a customer service representative.
3 - Spencer Repp , credit department manager, is the 2023 Employee of the Year. Repp started at Honor Bank in 2014 as a customer service representative.
>> CONSTRUCTION & REAL ESTATE
4 - Kaylyn Ducommun has joined Kultura Real Estate in Traverse City as a REALTOR.
5 - Sally Erickson , a longtime area builder, has joined Pella Windows and Doors by Horne as its brand ambassador for the Traverse City Pella Experience
Center. Erickson brings years of experience as a contractor and also is past president of the Home Builders Association of Northwest Michigan.
>> FINANCIAL SERVICES
6 - Jena Posey was recently promoted to chief compliance officer at hemming& Wealth Management in Traverse City. Most recently, Posey served as operations manager. She has worked in the financial services industry since 2010.
7 - Melissa Williams has joined Cardinal Insurance Group in Traverse City. Williams is an experienced agent handling home, auto, and business insurance.
>> HEALTH CARE
8 - Anne-Marie Deming recently joined Digestive Health Associates of Northern Michigan in Traverse City as a physician assistant. Deming provides expertise in diagnosing, treating, and preventing digestive tract diseases.
>> OTHER
9 - Brett Johnson of Machin Engineering in Traverse City recently passed the professional engineer exam.
Johnson is a project engineer and FAA Part 107 UAV pilot for the company.
10 - Sara Klebba has joined the Traverse City Downtown Development Authority (DDA) as director of events & engagement. Klebba, with more than 20 years of marketing and events expertise, brings a background in strategic planning, campaign development, and event management with previous roles at BBDO Detroit, Hagerty, and, most recently, as communications lead for Moms Demand Action Traverse City.
11- Liz Petrella has been named chief of staff for the Traverse City Downtown Development Authority (DDA). Petrella brings more than 40 years of management experience, specializing in change management, compliance, and organizational strategy to the DDA along with decades of service on boards and with volunteer organizations. Most recently, she served as chief of staff at Traverse Connect.
12 - Greg Smith has been promoted to general manager at Sonny’s Body Shop in Traverse City. Smith brings more than four decades of experience in the automotive world, including manager roles at Williams Body Shop and Fox Motors Body Shop in Traverse City, and most recently was production manager at Sonny’s.
Please send Newsmakers by the 10th of the month to news@tcbusinessnews.com
TRAVERSE CITY BUSINESS NEWS MAY 2024 63 NEWSMAKERS
2 // CHASE PASICZNYK 3 // SPENCER REPP 4 // KAYLYN DUCOMMUN
1
// CHAUNTEL LORENZ
5 // SALLY ERICKSON
8 // ANNE-MARIE DEMING
9 // BRETT JOHNSON 10 // SARA KLEBBA
7
// MELISSA WILLIAMS
11 // LIZ PETRELLA
6 // JENA POSEY
12 // GREG SMITH
WINDOW
64 MAY 2024 TRAVERSE CITY BUSINESS NEWS CUSTOM
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of M students Charlie Childs and Madeline Eiken with Intero Biosystems won both the grand prize and the audience choice award at the TCNewTech University Showdown April 23. As grand prize winner, Intero Biosystems received $5,000 and a MiSpringBoard certificate for free legal services and received the $500 audience choice prize. Intero Biosystems is a biotech company specializing in the creation of organoid platforms for drug discovery and development, according to 20 Fathoms.
Jessica Guenther, the founder/owner of FreshTrippin, marked the opening of her cleaning company’s new location at 1391 Industry Drive-3C in Traverse City. The company, which is three years old, outgrew its former space.
Coffee @ the Foundation gathering at GTRCF’s office in the Village at Grand Traverse Commons.
Dan Buron, executive director of Goodwill Northern Michigan; David Mengebier, president & CEO of the Grand Traverse Regional Community Foundation; and Christopher Morse, director of Advisory & Tax Services for Rehmann, at the Coffee @ the Foundation event, which is part of GTRCF’s annual community event series aimed at sparking connections and deepening relationships for the benefit of the region.
Flat Cap Ventures on U.S. 31 South near Chums Corner recently opened its doors free of charge to local businesses for a two-day, pop-up shop local event. It was open to any business struggling because of the construction or feeling pressure from declined sales and/or traffic. Many businesses participated. Pictured is owner Logan Call of Audacia Elixers.
TRAVERSE CITY BUSINESS NEWS MAY 2024 65 1 3 9 3 6 S W B A Y S H O R E D R . T R A V E R S E C I T Y , M I 2 3 2 5 S Y B R A N D T R D . T R A V E R S E C I T Y , M I 1 7 6 4 F O R E S T R I D G E D R . T R A V E R S E C I T Y , M I 4 0 0 W . F R O N T S T . T R A V E R S E C I T Y , M I WWW. REAL ES T AT ET C. COM 7,683 - 28,000 SF INDUSTRIAL / WAREHOUSE OFFICE SPACE OFFICE BUILDING RETAIL/OFFICE DRIVE-THRU $5 75 - $5 95/SF/YR NNN $25/SF/YR NNN $20/SF/YR MODIFIED GROSS $1,350/MO + UTILITIES 751 SF 1,920 SF 5,300 SF D A N S T I E B E L REALTOR® 2 3 1 . 6 3 3 . 0 4 3 2 dan@realestatetc com 522 E Front Street Traverse City, MI 49686 EXPOSURES
TJ Brown and Mike Powers of Keen alongside Oryana CEO Sarah Christensen showing the “Environmental Stewardship Awards” that Keen presented Oryana West for the solar array installation on the roof of the building.
U
Betsy Kurth, executive assistant at Women’s Resource Center, and Jamie Bell, development coordinator at Women’s Resource Center, enjoyed complimentary coffee at the Grand Traverse Regional Community Foundation’s
Gathering on the stage at The Alluvion for The Ticker’s April Recess at Commongrounds on Eighth Street were attendees, prize winners, sponsors, and staff of The Alluvion. Pictured l-r: Kelly Guckenberger, winner; Josh Brandt, GM, Higher Grounds; Kristin Nelson, winner; Amelia Bueche, owner of This Osteopathic Life; Nick Beadleston, Commonplace Community Coworking; Sherry Langdon, winner; Beth Pico, winner; DJ Ras Marco; Matt McCalpin, director of operations for The Alluvion; Brittany Madden, winner; and Jessica Kooiman-Parker, curator for The Alluvion/experience facilitator for Commongrounds Cooperative.
66 MAY 2024 TRAVERSE CITY BUSINESS NEWS PHOTO: DREW SMITH SPRING 2023 Volume 77 landscript Protecting significant natural, scenic and farm lands – and advancing stewardship – now and for future generations. Conserving the Land, Water and Scenic Character of Leelanau County 2023 Fall Newsletter Conserving the Land, Water and Scenic Character of Leelanau County 2023 Summer Newsletter 2779 Aero Park Drive Traverse City, MI 49686 marketing@vpdcs.com 800.773.7798 Thank you to our Regional Land Conservancies! We are so grateful for your vision and your work. landscript SPRING 2022 Volume 75 Protecting an Arbutus Lake Gem Announcing the Conservation Center at Mitchell Creek Meadows Our Annual Report Protecting significant natural, scenic and farm lands — and advancing stewardship — now and for future generations. PHOTO BY DREW SMITH PHOTO: NATE RICHARDSON Significant Addition for Brown Bridge Quiet Meet the Next Generation Conservation Leaders Restoration Progress Mitchell Creek Watershed FALL 2023 Volume 78 landscript Protecting significant natural, scenic and farm lands—and advancing stewardship—now and for Conserving the Land, Water and Scenic Character of Leelanau County 2022 Fall Newsletter “The best time to plant a tree was 20 years ago. The second best time is now.” CHINESE PROVERB
on segments reduce the availability on the line of credit. Your locked segment fixed interest rate will be determined based on your creditworthiness at the time your fixed-rate segment is approved. Actual APR will be determined by member’s credit score at the time of the loan request. Rate subject to change. This product has a variable rate that is based on the market rate (prime plus margin). Your margin will be between 2.00% APR and 7.00% APR. Your overall rate (prime plus margin) will never fall below 2.00% APR, nor will it exceed 18.00% APR.
TRAVERSE CITY BUSINESS NEWS MAY 2024 67 & Plant Your Roots MSU Federal Credit Union (MSUFCU) is celebrating the opening of our newest branch in Jackson, MI, with home loan specials just for you! Let Your Home’s Equity Work for You Receive $100 with a SmartLineSM Home Equity Loan and an initial draw of $10,000 or more.1 Save on the Home of Your Dreams Receive $500 off closing costs with a mortgage from MSUFCU.2 Federally insured by NCUA Equal Housing Opportunity 1Receive $100 deposited into your Spartan Saver when you open a SmartLine Home Equity Loan and make draws totaling $10,000 or more. One SmartLine Home Equity Loan per household. Limit of one-time payout of $100 per household. Applications must be received by 5/31/24 and SmartLine must close by 7/31/24. A total of $10,000 must be drawn from the loan by 8/31/24. Member will receive $100 within 60 days of reaching a total of $10,000 in draws. Eligible properties include primary residences; owner-occupied second homes; condos; modular and manufactured homes; and one- to four-unit buildings with owner occupancy in one of the units. Properties must be located within Michigan. Consult with a reliable tax advisor about the deductibility of home equity loan interest. Closing cost of $199 plus property valuation fee. You may only lock a segment of your loan during your draw period. There is no fee for the first segment; however, you will be charged a $25 fee for each subsequent segment. A fee of $25 will apply to requests to unlock a segment. Balances
Cannot be combined with other offers. 2The $500 off closing costs offer valid for new mortgages of $150,000 or more. Closing cost discount will be provided as lender credit. Offer cannot be used toward down payment or with any other discounts and is not available on home equity loans or lines of credit. All usual and customary fees will be charged to the buyer. Loans are subject to credit approval. Applications must be received by 5/31/24 and mortgage must close by 7/31/24. Eligible properties include primary and secondary residences: single-family homes, condos and modular homes. Home loans available for homes in the following states: MI, AL, AZ, CO, FL, GA, IL, IN, KY, MN, MO, NC, OH, OR, PA, SC, TN, VA, WA, or WI. Currently, construction home loans are only available in Michigan. Rates are based on creditworthiness, loan-to-value (LTV), property type, and other factors associated with your loan application. Your rate may be higher. This offer may not be transferred, sold, or replicated in any way, and it may not be combined with any other mortgage offers. To learn more and see all of our Jackson Grand Opening Specials, scan here or visit msufcu.org/jacksonspecials.
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