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BizTimes Milwaukee (ISSN 1095-936X & USPS # 017813) Volume 24, Number 14, October 15, 2018 – October 28, 2018. BizTimes Milwaukee is published bi-weekly, except monthly in January, July and December by BizTimes Media LLC at 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120, USA. Basic annual subscription rate is $42. Single copy price is $3.25. Back issues are $5 each. Periodicals postage paid at Milwaukee, WI and additional mailing offices. POSTMASTER: Send all UAA to CFS. NON-POSTAL AND MILITARY FACILITIES: Send address corrections to BizTimes Milwaukee, 126 N. Jefferson St., Suite 403, Milwaukee, WI 53202-6120. Entire contents copyright 2018 by BizTimes Media LLC. All rights reserved.
4 Leading Edge 4 NOW BY THE NUMBERS 5 BEHIND THE SCENES 6 INNOVATIONS 8 BIZ COMPASS 10 PROJECT PITCH IT 12 GETTING THERE 13 THE GOOD LIFE 14 IN THE NEIGHBORHOOD BIZ POLL
15 BizNews 15 L EADERSHIP LESSONS FROM KAREEM ABDUL-JABBAR 17 W ISCONN VALLEY VENTURE FUND IS A UNIQUE MODEL 19 MADE IN MILWAUKEE
20 Real Estate
The Wisconsin health care squeeze
37 STARTUPS Kathleen Gallagher 38 COACHING Susan Wehrley 39 TIP SHEET
Employers in state hit by higher costs
22 Health Care: Senior Living In addition to the cover story, coverage looks at the impact of pet therapy in senior living facilities.
30 Leadership Development Coverage includes top tips from the 90 Ideas in 90 Minutes event and a report on Partnership MKE.
T H E S A LV AT I O N A R M Y O F M I LW A U K E E C O U N T Y
S T. M A R C U S S C H O O L PHONE: (414) 562-3163 WEB: stmarcus.org/school
PHONE: (414) 302-4300 WEB: SAmilwaukee.org The Salvation Army, an international movement, is an evangelical part of the universal Christian church. Its message is based on the Bible. It’s ministry is motivated by the love of God. Its mission is to preach the gospel of Jesus Christ and to meet human needs in His name without discrimination.
To disciple children for Christ now and for all eternity, and to train them in excellence for their roles in their family, church, community, workplace and country.
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Komatsu to build $285 million HQ complex at Solvay Coke site By Arthur Thomas, staff writer Komatsu Mining Corp. will consolidate two of its Milwaukee-area operations in a $285 million headquarters and manufacturing facility at the former Solvay Coke site in the Milwaukee Harbor District, the company, state and local officials announced. Komatsu plans to add 443 jobs over the next 12 years at the new headquarters, where employment is expected to eventually exceed 1,000.
The Wisconsin Economic Development Corp. is providing $59.5 million in state income tax credits to support the project and the City of Milwaukee is expected to provide $25 million in assistance through a developer-financed tax increment financing district. The company plans to build 170,000 square feet of office space, a 20,000-square-foot museum and training building, and 410,000
BY THE NUMBERS Brookfield-based Fiserv Inc. plans to acquire a unit of Elan Financial Services, a division of U.S. Bancorp, for
4 / BizTimes Milwaukee OCTOBER 15, 2018
square feet of manufacturing space on the 47-acre site, located south of West Greenfield Avenue and east of South First Street, along the Kinnickinnic River. At the new South Harbor Campus, Komatsu will combine operations currently located at its headquarters along West National Avenue and at the Honey Creek Corporate Center in Milwaukee. The project is expected to be complete by 2022. Komatsu is the second major project to be announced along the Kinnickinnic River this year. In August, Brownsville-based construction company Michels Corp. said its regional office would anchor a $100 million mixed-use development at the former Horny Goat Hideaway property in Milwaukee’s Bay View neighborhood. “The new campus provides us opportunity for advancement in state-of-the-art facilities that expand our capabilities on a global scale,” said Jeff Dawes, president and chief executive officer of Komatsu Mining Corp. “Our new facilities will be designed to enhance safety, efficiency and environmental sustainability – all top priorities of Komatsu worldwide, allowing us to better serve our customers and deliver innovative solutions.” Komatsu America Corp., the Rolling Meadows, Illinois-based subsidiary of Japanese heavy equipment maker Komatsu Ltd.,
bought Milwaukee-based mining equipment maker Joy Global Inc. in 2016 for $3.7 billion. Joy was then rebranded as Komatsu Mining Corp. The new headquarters campus will be located about a mile from the location of one of the original Pawling & Harnischfeger machine shops, built in 1886 near South First and East Oregon streets, according to the Wisconsin Historical Society. P&H was the surface mining segment of Harnischfeger Industries Inc., which rebranded as Joy Global in 2001 after emerging from bankruptcy. A far cry from the original machine shop, the new headquarters will have advanced machine, heat treat and fabrication shops, state-of-the-art research and development and robotics labs, a purpose-built office complex, a data solutions center, and a global training and conference center. Komatsu says the new facilities will be built with the goal of having near zero emissions. Solar panels; wind spires; a remotely operated, closed-loop heat-treat system; green spaces; LED lighting; and other sustainability efforts will help the company reduce energy consumption by 75 percent and water consumption by 80 percent compared to current operations. BizTimes Milwaukee reporter Corrinne Hess contributed to this report. n
LILA ARYAN PHOTOGRAPHY
BEHIND THE SCENES Discovery World drone installation By Lauren Anderson, staff writer
iscovery World recently completed construction on a new energy experience exhibition at the downtown Milwaukee museum. The Power On! exhibit, sponsored by a $2 million gift from the We Energies Foundation, includes various interactive exhibits that allow guests to generate energy and explore energy concepts that affect everyday life. During construction, a crew from Astronautics Corp. of America installed a drone exhibit with the help of interns from the University of Wisconsin-Milwaukee, Milwaukee Area Technical College, Milwaukee School of Engineering and Waukesha County Technical College. As part of the exhibit, visitors will generate mechanical energy by pedaling a bike to make the drone take flight, rev up a chainsaw, turn on police vehicle lights, cause monkey toys to clash cymbals and run a blender. n
Bernice Kubicek and Serhane Satout, MSOE students and Astronautics interns, hoist the drone exhibit.
A crew of Astronautics Corp. of America employees examines the drone component of the new Power On! exhibit at Discovery World.
The police vehicle lights and blender are part of the Power On! exhibit.
Visitors will pedal a bike, generating energy to make monkey toys clash cymbals.
Tom Servais, manager of the engineering prototype shop at Astronautics, works on the drone.
biztimes.com / 5
INN Telkonet’s Symphony platform makes hotel rooms feel like home
Telkonet Inc. Waukesha
INNOVATION: Hotel IoT software platform FOUNDER: Jason Tienor telkonet.com
6 / BizTimes Milwaukee OCTOBER 15, 2018
BIZTIMES MEDIA – Like us
VAT I THE INTERNET OF THINGS has become somewhat ubiquitous in many American homes, with smart thermostats allowing for homeowners to control the temperature from their phones, and smart speakers allowing them to simply speak a request to the device. But the commercial market has been slower to adopt smart devices. Waukesha-based Telkonet Inc. has been trying to change that. This summer, Telkonet introduced a new product called Symphony that can be used by commercial clients to harness their Internet of Things devices, including thermostats, outlets, light switches, door and window sensors, and wireless gateways. It can also communicate with Volara, which allows voice activation across the platform. It could have a significant financial impact for hotels, college campuses, military bases, senior living, public housing and health care facilities, which have hundreds of rooms in which the lights, thermostat and curtains are at varying levels at all times of day, said Jason Tienor, chief executive officer at Telkonet. “The idea behind Symphony is to be able to deploy in large scaled environments,” Tienor said. “The things that seem to materialize as the next innovations or the next abilities in commercial environments are those that are first born in the consumer space.” Using Symphony, a hospitality company could set hotel rooms to be in energy hibernation mode when a guest departs the room for the day, but return to the user’s preferences when they put their keycard into the lock, with the curtains open, the TV set to a certain channel and the temperature
Right: A hotel room could be returned to guest preferences once a keycard is scanned at the door. Below: Telkonet’s Symphony platform allows hotels to manage their energy usage and customize the guest experience.
and lights as the guest left them, he said. And hotel staff could get alerts when the minibar needed a restocking, for example. “The same features and functionality and creature comforts that you see in the consumer world are those that translate equally well into the commercial environment,” Tienor said. Symphony helps all the different Internet of Things devices, each with its own controls and applications, work together and “speak” to each other on a third-party platform. Symphony is compatible with Zigbee, Bluetooth, wifi and Ethernet connected devices. “As more third-party developers deploy their products on the Symphony platform, it will become a much larger and more robust platform,” he said. According to Telkonet, a hotel could save up to 45 percent on inroom energy costs, just based on thermostats alone, using the Symphony platform. Hotels can also use the smart technologies to welcome their loyalty members to a room by name and set it to their liking.
“There’s a lot that can be seen there from the business case perspective and when you pair it with the creature comforts and efficiencies of what can be found in the space by the guests or the consumers themselves, there’s a lot of reasons to be deploying technologies like these,” he said. Telkonet has a similar platform already, called EcoSmart, that is a legacy offering integrating just the Zigbee-connected products. But Symphony is the first network-agnostic, enhanced-learning cloud platform for the hospitality industry, the company says. Symphony provides third-party device integration for all kinds of products by getting chips and sensors to “speak” to each other across all types of languages so they can be controlled on a single device. n
Managing Editor P / 414-336-7144 E / email@example.com T / @BizMolly
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BIZTIMES MEDIA – Connect
What 's one thing
M A N AGERS SHOULD S TO P DOING? WOELBING 1 PAUL
President, Carma Laboratories Inc.
“An employee should never feel alone when they have a problem. I was a teacher for 10 years before I started working at Carmex and it was a great environment to learn how people are wired. It’s common to think ‘my problem is unique,’ but they rarely are. In a healthy work environment, employees have a team to help them – including managers.”
2ROBERT CAMPBELL JR.
Vice president, Campbell Corp.
“While our lean manufacturing project managers have a vast amount of industry experience, we strongly encourage them to not micromanage our projects. Micromanagement is an unsustainable management practice and stifles the creativity and participation of staff. Part of what we do as a consultant is teach, and it’s not possible to transmit knowledge if we do all the work.”
3 ADAM BROWN
President, Sign Effectz Inc.
“Behaving inconsistently or unpredictably. Many managers forget about the amount of influence they have with their employees and the amplified impressions they leave. It’s important to be consistent. Your opinion can change, as long as it’s followed by some type of justification and that gets shared with them. It’s hard to walk on a moving bridge.”
ALDRETE 4 GRISELDA
President and CEO, Hispanic Professionals of Greater Milwaukee
“At HPGM, we say that strong managers listen intentionally and find ways to enhance their employees’ skill set. Managers cannot use a one-size-fits-all approach and must be mindful that no two employees are the same. Taking time to listen, learn and adapt can lead to fruitful working relationships.”
DOVER 5 MIKE
President, The Wagner Cos.
4 8 / BizTimes Milwaukee OCTOBER 15, 2018
“Managers should stop giving performance reviews on an annual basis and treat that opportunity as a corrective action step. Employees should be engaged with their manager on a much more frequent basis and the performance review turns more into a conversation with your employee on looking back at the accomplishments for the period and a plan for what’s next on the department’s list to support the business’ strategic plan.” n
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@BIZTIMESMEDIA – Real-time news
PROJECT PITCH IT T
DAYNC STUDIO MKE LEADERSHIP: Amber Rivard and Josh Burgos A D D R E S S: 910 E. Hamilton St., Milwaukee WEBSITE: dayncstudio.com W H AT I T D O E S: Salsa, bachata and hip hop dance lessons F O U N D E D: 2016
Daync Studio expands into shoe sales By Molly Dill, staff writer
he owners of Daync Studio MKE didn’t just walk on set in an episode of WISNTV Channel 12’s entrepreneurship show “Project Pitch It.” They danced a salsa. Amber Rivard and Joshua Burgos co-founded Daync on Milwaukee’s East Side in 2016. They met five years ago at a salsa lesson. “Little did we know that we had more in common than just passion for salsa dance,” Rivard said. “We were looking to add positivity to our lives, to be a part of a bigger community and to do something that would help boost our self-esteem.” They never planned to open a studio, Rivard said, but were planning to buy a rehearsal space for their dance company. Now, Daync offers seven classes to about 100 students weekly. “It’s molded into what it is now just because of what the lower East Side has been looking for,” she said. Daync works with everyone from those with two left feet to more experienced dancers via a variety of course levels. On “Project Pitch It,” Daync’s founders, who are now a couple, won the $10,000 cash prize, which they have put toward selling dance apparel and shoes at their studio. They also upgraded their sound system and repaired their studio floors. Rivard told the business mogul judges on PPI that Daync customers have consistently asked about where they can get shoes like the ones she wears, but they’re not easily able to determine their size. “I’m not against you bringing in shoes. You’ve got to watch the inventory,” said Jim Lindenberg, one of the business moguls. “You have an audience that’s asking you about
Amber teaches bachata to a student at Daync Studio MKE.
it, so why not sell it?” The pair has taken Lindenberg’s advice, ordering a limited inventory of shoes to give people an idea for their sizing, and putting in orders to a San Diego warehouse as they are received. “The shoes that we sell are very lightweight so your body doesn’t hurt after wearing them,” Rivard said. “They’re … easier to move in and they help everybody with their weight transfers better. Some are a little bit more urban, some are more traditional heels.” The owners hope people leave their studio feeling uplifted. “It’s about that specific positive vibe that really sets us apart from other studios that exist because we focus on not only beginners, but people just feeling good and knowing that it’s judgment-free,” she said. n
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Why Milwaukee? BRIAN FAHEY: “For the past 16 years, I lived and worked in New York City. When this opportunity presented itself to me, I visited the city and the hotel prior to making my final decision, and decided to pick up my life and move to Milwaukee. It just goes to show you that life and your journey can take you to places that you would never expect.”
How does the hospitality market compare? Nomination Deadline: October 26, 2018
“In New York City there are so many options, so many choices. The competition is palpable. In some ways, that is starting to be the case in Milwaukee as the market continues to grow with new hotels, restaurants, banquet halls and catering spaces. This is healthy because ultimately, as an operator, it teaches you to stay on top of your game.”
On maintaining work-life balance. Recognize the people and organizations that are making a difference every day by providing superior health care in our region.
Categories Include: Advancements in Health Care: Honors a company or individual primarily responsible for a scientific or discovery or for the development of a new medical product or procedure.
Behavioral Health: Honors an individual or an organization for their leadership, commitment and care on behavioral health issues.
Community Service: Honors an individual or an organization for leadership in focusing on solving a particular health care issue.
“Hospitality is all about looking after people and taking care of them – both our guests and our associates. I have learned throughout my career that if I do not look after myself, I am not as effective as a leader. Selfcare and taking time to do the things that I enjoy is so important.”
A business mantra you live by. “I always like to approach things from a place of how can we continually grow – the idea that we always have to strive to be better today than we were yesterday. It is so important that we celebrate and recognize all of the things that have got us to where we are today. However, we can never rest on our laurels. As the city continues to grow and evolve, we have to, as well.”
Corporate Achievement in Health Care: Honors a company or organization that has successfully implemented an innovative health care product, process or service.
Executive Leadership: Honors a senior-level individual who demonstrates strong skills in leading their organization in quality care, collaboration and financial management.
First Responder: Honors a person who arrived on the scene of a healthcare emergency utilizing their training to treat and comfort the patient in need.
Health Care Staff: Honors an individual who has made a significant difference in the wellbeing of others.
Nurse: Honors an individual from the nursing field whose performance on the job is considered exemplary by patients, peers and physicians.
Physician: Honors a physician whose performance on the job is considered exemplary by patients and peers.
Volunteer: Honors an individual who has done volunteer work for the good of one or more people or the entire community.
Winners will be featured in the December 17, 2018 issue of BizTimes Milwaukee
To nominate a hero, visit biztimes.com/hero 12 / BizTimes Milwaukee OCTOBER 15, 2018
BRIAN FAHEY General manager IRON HORSE HOTEL AGE: 41 HOMETOWN: Boston EDUCATION: Bachelor’s in journalism with a concentration in marketing and public relations from Northeastern University. PREVIOUS POSITION: General manager of MADE Hotel New York
Knopp engineers a hydroponics system By Corrinne Hess, staff writer
the Andrea Knopp in her basement with her hydroponics set-up.
ydroponics was a natural step for Andrea Knopp, an industrial engineer who likes to eat healthy and has additional space in her basement. “I love experimenting with new, difficult-to-find edible plants,” Knopp said. “This has allowed me to grow varieties that were once near the brink of extinction, but are now being reintroduced.” Knopp, a lean consultant at Greenfield-based Campbell Corp., began buying the grow lights, trays, air pumps, water pumps and water filters about a year ago to start the process. Hydroponics is the practice of growing plants with only water and pH-balanced nutrients. Knopp first discovered this type of gardening from a friend, who has a similar system in his basement. She has been attempting hydroponics for about a year and said while it has been frustrating at times, she really likes the results.
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“I grow a lot of lettuce, chard, spinach, rosemary and other herbs,” Knopp said. Investing in all of the materials has not been cheap, especially for the reverse osmosis set up, which Knopp said is necessary for what she wants to do. It has also brought her a few laughs, considering a lot of the items she has purchased could be used to grow marijuana. Knopp has become a target for different types of advertisements she was not expecting. The products could also be used by home brewers who want to make their own beer. Knopp said that is something she might try at a later date. “I just thought it would be fun to grow my own food,” Knopp said. “But it is definitely something that involves patience and a little bit of math skills. It is more work than I thought it would be. Probably 15 minutes a day, but you have to do it every day.” n
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@BIZTIMESMEDIA – Real-time news
IN THE NEIGHBORHOOD What happens at your office? Martin Huennekens: “We’re not a store; we supply businesses with products. We warehouse and office and design ship from here. The products are handmade fair trade metal gifts from Thailand. We do a lot of ornaments. We do a lot of needle nannies. We do a lot of cute gifts and tchotchkes, decorative gift items.” How did you get your start? “I got into it while doing a year of college in Thailand. I met people who have incredible skills to make wonderful items and I sell as many of them as I can so they
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can have as much work as possible.”
Who are your customers? “Fair trade stores, art galleries, museums, organizations that have fundraisers, sea mammal rescues, alpaca farms; gift shops in touristy places, from Cedarburg to the North Pole. All the places you would think of and some that you wouldn’t think of.” Has the popularity of fair trade affected your business? “It’s been a bit irrelevant. I’m glad more people are aware and care about it. (But) we make stuff of such amazing quality and
such unique design, that it sells by itself. When you find out it’s fair trade, it gives one more plus. We have a very unique set of skills based on traditional, hand-craft skills that have been kept alive that families have passed on that it continues.”
What’s up with the flower mural on your building? “When we bought it, it was a plain, rectangular, cinderblock building. And I thought, ‘I have to come here every day,’ so I hired a muralist and got an entire wraparound mural. I just wanted it to be a beautiful place where, when I have to come to it, I like looking at it.” n
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BizNews INTERVIEW BIZTIMES: You are wearing a UCLA
jacket, where you went to college and played for the great John Wooden. What were some of the most important things you learned from him as a leader? ABDUL-JABBAR: “The way he emphasized preparation. He always said he did his coaching during the week. And when it got to the weekend we were just going to enact the game plan that we worked on all week. Very simple! You have to know your part, you have to know your role and how you can contribute, how you make that efficiency the trademark of your team.” BIZTIMES: You mention playing
Leadership lessons from Kareem Abdul-Jabbar FORMER MILWAUKEE BUCKS and Los Angeles Lakers star Kareem Abdul-Jabbar is an NBA Hall of Famer,
the all-time leading scorer in NBA history and was a member of six NBA championship teams. He was also a member of three NCAA national championship teams at UCLA. Abdul-Jabbar has been an activist, has appeared in numerous television shows and movies (including “Airplane!”) and has written several books. His most recent book, “Becoming Kareem,” is a memoir of his youth in New York, his college years at UCLA and his early pro career, as he grew into an adult who converted to Sunni Islam in 1968 and publicly changed his name, from Lew Alcindor, in 1971. Abdul-Jabbar’s unique life journey was the subject of a one-on-one, on-stage conversation with sportscaster Bill Michaels recently at the Marcus Center for the Performing Arts in downtown Milwaukee. The event was also called “Becoming Kareem,” and was based on the book published last year. Prior to the event, Abdul-Jabbar participated in an exclusive interview with BizTimes Milwaukee editor Andrew Weiland to discuss his leadership philosophies and what he learned from iconic basketball leaders whom he played for and with. Following are portions of that conversation. BIZTIMES: During your career,
you’ve been around great leaders and you have been a leader. What are the top leadership philosophies that you have developed over the years? ABDUL-JABBAR: “One of the key things in being a leader is to have an understanding of teamwork. You may be great at what you
do, but without the support of the other people, their skill and expertise that support what you do, if those interactions aren’t well-oiled you are not as efficient as you want to be.” BIZTIMES: Any other key leader-
ship philosophies you think are important?
ABDUL-JABBAR: “As a leader,
you have to understand how all of the parts fit together. Try to keep that as the primary focus of all of the different parts. Dealing with people, have an idea of what they should be focused on and make sure that’s always sharp and in contact with all of the others.”
roles. I think basketball is a unique sport that especially requires players to stick to their role. Not everyone can be the star and the leading scorer. There is only one ball, and it has to be shared. Someone has to rebound and play defense. How do you get players to embrace and accept their role? ABDUL-JABBAR: “Everybody wants to score something. But there are guys when they start playing, they’re not that good at scoring but they are good at keeping other guys from scoring. You get guys with that mindset, and there’s a place for them. Guys that can control the defensive backboard, that’s a valuable guy to have on your team.” BIZTIMES: Is it sometimes difficult
to get people to buy into their roles? ABDUL-JABBAR: “Yes. It’s kind of like with acting. One guy says, ‘I want to get to kiss the girl.’ But he might have to play a different role! I think basketball is like that a lot. Some guys think they are always open and have a great shot, and that’s not the case. It takes a while before they get it.” BIZTIMES: Thinking about some of
the other coaches you played for… Pat Riley of course. What did you take away from him as a leader? ABDUL-JABBAR: “I was on the team when Pat went from being a player, to radio (broadcast) biztimes.com / 15
assistant, to assistant coach, to head coach. We started out as teammates, and he ended up coaching me. So it was pretty amazing to see the transformation happen. But Pat worked hard at it, and he knew the game well.” BIZTIMES: Sometimes somebody
working side-by-side with you as your peer gets promoted and becomes your boss and that can be a difficult relationship change. Was it hard for you to take Riley seriously in that role? ABDUL-JABBAR: “Let’s just say we had some ‘I knew you when’ moments. I’ll leave it at that, you know. When he had to be the disciplinarian…and he used to do a few things that he might not want to make the evening news.” BIZTIMES: What about some of the
leaders you played with? Magic Johnson. You played with him from
when he was a rookie and played with him during much of his great career. Now he’s a leader in the Lakers organization as president of basketball operations. How has he evolved over the years as a leader and how do you think he’s doing in his current role? ABDUL-JABBAR: “As he went on, he matured every step of the way. Tough thing to deal with when he had to make the HIV announcement. He just kept working through it. He’s survived and thrived. A pretty amazing story.” BIZTIMES: What about Oscar Rob-
ertson, who played with you during your years with the Bucks? ABDUL-JABBAR: “Oscar was just a consummate leader on the court. He always wanted everybody to do everything right. We always thought he drove us hard. But he contributed the same type of consistency and excel-
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lence that he wanted from us.”
was great at leading in that way.”
BIZTIMES: When you played with
BIZTIMES: What was Larry Costello,
Oscar you were a young professional and he was near the end of his career. What was it like to play with him at that stage of his career? ABDUL-JABBAR: “Oscar was great at keeping us focused. When he played for the (Cincinnati) Royals he was the primary scorer and had to do everything. You can’t win like that. This past year everyone saw with LeBron James, you can’t do it all by yourself… Oscar gave us consistency as our point guard and kept us focused in a very quiet way. I think that’s the difference between him and Magic. Magic was very exuberant. Oscar was reserved but very focused and kept us focused. Magic relied on the coach more to do all of the focus stuff; as far as our emotion and willingness to go out there and give it all, Magic
who was the coach of the Bucks when you played in Milwaukee, like as a leader? ABDUL-JABBAR: “Larry knew the workings of the game, kept us focused on that. He coached me my rookie year, and then we got Oscar. Oscar is like having a coach on the court, so Larry really didn’t have to coach too much!” BIZTIMES: Sometimes a leader
needs to get out of the way when you have talented people. ABDUL-JABBAR: “Right. When you have a number of guys that have played in good programs and understand the game and how to work together, it’s easier on the coach, it’s easier on the point guard, because everybody is functioning in ways to coordinate and breed efficiency.” n
Terry Gou, chairman of Foxconn Technology Group, announces the new venture capital fund.
Wisconn Valley Venture Fund is a unique model While focus is global, investments expected to benefit Wisconsin BY MOLLY DILL, staff writer THE FOUR-CORPORATION
Milwaukee venture capital fund announced last month, Wisconn Valley Venture Fund, is an uncommon model. Solo corporate venture funds are becoming increasingly common, including among the companies involved in the Wisconn fund. But a review of other group venture capital models shows there aren’t many like the $100 million Wisconn fund, which was formed by Foxconn Technology Group, Advocate Aurora Health Inc., Johnson Controls International plc and Northwestern Mutual Life Insurance Co. Regional efforts such as Michigan’s Renaissance Venture Capital, St. Louis’ Arch Grants program and Cincinnati’s Cintrifuse Syndicate Fund have been formed by local stakeholders to drive startup activity in similar Midwestern cities, but on a private basis. Renaissance is a private fund of funds which invests in existing venture capital funds around the country – with the condition that the investors come to Michigan to
get the money and meet a couple of local entrepreneurs while they’re in town. Cintrifuse was modeled on Renaissance as a fund of funds, but with a more targeted focus just on Cincinnati and with affiliated co-working and startup support services. Its startup accelerator, The Brandery, was taken over by gener8tor earlier this year. The formation of Cintrifuse was driven by an association of executives from the city’s 30 largest corporations. Arch Grants is a private direct investment program, which offers a $50,000 grant to 20 startups each year to locate in St. Louis. Ross Blankenship, chief executive officer of Washington, D.C.-based venture capital fund Angel Kings and an expert on startups and venture capital, said the Wisconn Valley Venture Fund’s four-corporation structure is unique. He said the announcement has some elements of politics and public relations driving it as Foxconn Technology Group, which is set to receive $3 billion in state tax credits for its development in
Mount Pleasant, works to build goodwill with Wisconsinites and Gov. Scott Walker seeks reelection. The size of the Wisconn fund compared to other venture capital funds nationally is small, Blankenship said. For example, Sequoia Capital has several venture capital and growth funds totaling $12 billion, and SoftBank Capital (in which Foxconn has a stake) has a $100 billion corporate venture fund. “$100 million is quite insignificant from a macro perspective for how big Foxconn is,” Blankenship said. “It’s barely a decimal point for these guys on their balance sheet.” The Wisconn fund will benefit Wisconsin, since other corporations and venture capital funds are likely to take notice and come in to the market, he said. Markets like New York and San Francisco are already saturated with venture capital, and the valuations in Wisconsin are attractive because they’re much lower. Ross Baird, innovator-inresidence at the Ewing Marion Kauffman Foundation and president
of venture capital firm Village Capital, said corporations with an affinity for a place or industry are playing a role in funding startups nationwide. “I would say that it’s unusual to see a venture fund pull together in a specific region where the companies don’t have a connection to that region. The typical investment happens within 90 miles of where the person making the decisions is,” Baird said. But the direct investment model Wisconn plans to use may be less effective than funding entrepreneurship infrastructure and programs, he said. “We’ve seen a number of efforts where people are trying to change the entrepreneurial culture of a region by directly investing in companies,” Baird said. “And we haven’t seen evidence that direct investment in companies makes a meaningful impact on the entrepreneurial successes or failures.” He pointed to Wisconsin’s low ranking in the Kauffman Foundation’s measures of entrepreneurship activity by state.
Too soon to tell Wisconsin investors and startup leaders who followed the Wisconn fund announcement said it will be difficult to determine the impact of the fund at this stage. There isn’t yet a fund manager at the helm, and there aren’t a lot of specifics on it. According to the companies involved, the Milwaukee-based Wisconn fund will make investments of between $250,000 and $5 million in companies at various stages of growth. It will invest globally, with no guarantee of investments in Wisconsin companies. And it will be focused on “transformative and interdisciplinary” innovations in the organizations’ sectors: health care, technology, manufacturing and financial services. “I’ve talked to many of the venture capitalists and (angel investors) around the state and they think the jury’s out,” said Kathleen Gallagher, executive director at the Milwaukee Institute. “There’s not enough information to biztimes.com / 17
understand the impact it’s going to have on the state.” “For me, there’s still some parts I’m not fully clear on. For example, are the four partners going to pool all their dollars and then make direct investments only?” asked Tom Still, president of the Wisconsin Technology Council. “It pretty much looks like a straight up venture capital fund,” said John Neis, executive managing director at Madison venture capital fund Venture Investors. “You’ve got four partners with really different areas of interest, so I think it will be really interesting to see how they manage that in terms of the scope of what they look at in terms of opportunities.” The Wisconn fund will add meaningful investment capability in Wisconsin, which will help drive additional syndication on venture capital deals in the state, Neis said. And the four corporations leading
the way on the initiative shows their commitment to developing the innovation economy in Wisconsin, which could help attract out-ofstate investors. “I’ve said for a while we need our institutions in this state…to step up and participate in the asset class in a meaningful way,” Neis said. “If we in the state who know the opportunities that are in our backyard, believe in the people who are trying to advance them, if we aren’t stepping up, why should we expect anybody else to?” “I think obviously we need to know who the fund manager is and what their strategy will be for deploying the capital in the fund,” said Matt Cordio, president of Startup Milwaukee and Skills Pipeline. “It’s a great thing that will hopefully be another potential catalyst as we continue to build momentum and move southeastern Wisconsin forward.”
“In the venture capital world, more is better,” said Tim Keane, director of Brookfield-based Golden Angel Investors LLC. “This new fund, to me, is another sign of the terrific renaissance of entrepreneurship in Milwaukee.” The corporate model will provide not only additional capital for Milwaukee startups, but also access to the corporations’ customers, he said. It can be difficult to define a fund until it starts making investments, but that will likely be clarified over time, Keane said. If the Wisconn fund decides to invest in a startup in another state, with four major corporations backing it, there’s some pull to attract entrepreneurs to locate here, Keane said. If the fund is seeking a return on investment, it would hamper their efforts to intentionally restrict their geography of investment, Neis said.
U.S. venture capital funds are clustered in New York, Massachusetts, California and Texas, and more than 80 percent of venture capital is deployed in those states, Neis said. “Let’s face it, any investor loves the idea of actually being able to drive or walk over to a portfolio company for a routine interaction rather than hop on a plane for quarterly board meetings,” he said. “Especially if you’re doing seed and early stage, everybody would prefer to have the entrepreneur at arm’s length because you can be more helpful if you’re right there,” Keane said. Keane said over time, this fund will likely drive substantial local opportunity and impact. “This does not have the gestation period of a housefly,” Keane said. “It takes a long time, but it’s generational and it’ll happen.” n
SOUTHEASTERN WISCONSIN’S BUSINESS LEADERS ATTENDED THE ANNUAL MMAC/COSBE FUTURE 50 AWARDS LUNCHEON ON SEPTEMBER 21ST AT THE PFISTER HOTEL IN DOWNTOWN MILWAUKEE. THE PROGRAM CELEBRATED THE SUCCESS OF 50 FAST-GROWING BUSINESSES THROUGHOUT THE REGION.
CONGRATULATIONS TO ALL OF THE WINNERS, AND THANK YOU TO THE EVENT SPONSORS!
18 / BizTimes Milwaukee OCTOBER 15, 2018
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Sic Lazaro emerges from restructuring with renewed focus When Ed Samera first arrived at Sic Lazaro U.S. Inc.’s 130,000-square-foot manufacturing plant in August 2017, there was upward of an inch of dust in some places, machinery maintenance had fallen behind and employee morale was low. “The machines weren’t operational to do productive work,” Samera said. “They’d let it deteriorate to that point.” Samera, vice president of management and operations for Cedarburg-based sales consulting firm Vx Group Inc., was brought in to help turn around the Milwaukee-based U.S. subsidiary of Spanish counterweight manufacturer Sic Lazaro. After more than a year of work, the company has reached a point where Samera says it is primed for growth. To that point, Sic Lazaro hired Ken Rawson late this summer to serve as general manager. Rawson took control of the company’s operations while Vx Group turned its focus toward generating new sales. Rawson, who has worked in metal fabrication throughout his career, said he feels like the company has a strong foundation to start moving forward. “We also have a great facility to diversify and expand into large fabrications,” he said. “Really, it’s just a matter of growing.” Sic Lazaro established U.S. operations in 2011, one of a number of Spanish manufacturers to set up shop in Milwaukee around the same time. The business focuses on making two types of counterweights: those used in elevators and those on heavy equipment, like cranes.
The counterweights are made from concrete, steel or in some cases, both. They help provide balance and stability, giving an elevator a smoother ride and keeping heavy machinery from tipping over. When a major customer on the heavy equipment side of the business left the state, taking a substantial amount of work with it, Sic Lazaro started to run into trouble. Demand from elevator markets was steady, but not high enough to fully use the capacity of the plant. The combination of sliding sales and the departure of senior leaders put the company on a bad path. Samera and the Vx Group had two tasks when they arrived last year. The first was to clean the place up and get machinery working again. The organizational systems put in place over the past year almost make it hard to imagine what kind of condition the plant was in. The second task was to generate new sales. Proving the company could meet delivery and quality expectations was one part of the equation, but Samera said Sic Lazaro has also found success introducing concepts from the elevator business to the heavy equipment world, including high-density counterweights that pack more weight into a smaller space. “You have to do both,” Samera said of improving the business’ fundamental operations while also chasing new sales. Samera said the U.S. company made clear to its Spanish parent that if it was to be responsible for its own profit and loss, then it would also need the autonomy to control its own fate. The two
Sic Lazaro is adding fabrication and welding work outside of its main counterweight business.
SIC LAZARO U.S. INC. 7044 N. Teutonia Ave., Milwaukee
INDUSTRY: Elevator and heavy equipment counterweights EMPLOYEES: 30
organizations are still connected and can collaborate with some international customers, but the Milwaukee operation is self-sufficient, he said. Sic Lazaro is also turning what could be a liability, a lack of work for its plant, into an asset. “With the shortage of welders, we have weld capacity that we’re getting more and more work for fabrication,” Samera said. The company is expanding its operations beyond just the counterweight business as it adds fabrication and welding work. The pieces of heavy equipment Sic Lazaro makes counterweights for rest on large frames. The amount of space the company has allows it to take on that work. Samera has also placed an emphasis not on having the absolute lowest price, but on being cost effective for customers. He pointed to Sic Lazaro’s ability to paint pieces after welding them together, delivering them straight to an assembly line and eliminating a potential bottleneck in a customer’s production. It also doesn’t hurt that
Sic Lazaro’s painter paints custom cars in his free time, so the work comes with a high-quality finish. Samera said it was important to tap into the skillsets of the company’s employees. While everyone has to take on multiple roles during the turnaround, it is also crucial that employees contribute where they are strongest. “We’re trying to be more diverse in different industries so we can have a more sustainable business moving forward,” Samera said. n
ARTHUR THOMAS Reporter
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ENGBERG ANDERSON ARCHITECTS
A rendering of Jeffers’ proposed office building at 503-507 N. Broadway.
Blending old with new, Jeffers reconfigures plans for Clybourn site
WHEN MILWAUKEE DEVELOPER Joshua Jeffers shifted gears from residential to office on his planned nine-story office building in downtown Milwaukee, it wasn’t because he felt the multi-family market was softening. In fact, Jeffers and his compa-
ny, J. Jeffers & Co., are still bullish on multi-family. But over the past year, there has been a lot of interest from office tenants in the site for the development, at 503-507 N. Broadway, Jeffers said. Jeffers is pursing the Milwaukee office of law firm Husch Blackwell LLP, which is in the market for between 60,000 and 65,000 square feet of office space when its lease expires at Cathedral Place, 555 E. Wells St., in November 2020. He is also in discussions with a 42,000-square-foot office tenant and two other prospective tenants, which would each lease 15,000 to 20,000 square feet. Even without the Husch Blackwell deal, the project could be completed because there is a lot of interest in the building, Jeffers said. “I wanted to make sure that we could build the building that we wanted before really going after tenants,” Jeffers said. “And now that we have that, it is really full steam ahead.” On Oct. 1, the yet-to-benamed project received conceptual approval from the city’s Historic Preservation Commission. The building requires approval
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ADDRESS: 8501 W. Brown Deer Road, Milwaukee BUYER: Alliance Development Corp. SELLER: Target Corp. PRICE: $1.8 million 20 / BizTimes Milwaukee OCTOBER 15, 2018
Growing Elkhorn-based manufacturer Midwest Refrigerated Services Inc. will be expanding into a former Target store on Milwaukee’s far northwest side that has been vacant since January 2016. Midwest Refrigerated Services’ parent company, Alliance Development Corp., purchased the 118,461-square-foot former Target store, which will be converted into office and warehouse space. The new location will employ about 80 full-time employees and between 10 and 40 temporary employees, according to plans submitted to the city this summer. Midwest Refrigerated Services operates 10 locations in three states. The company distributes and transports refrigerated and frozen food products. It is currently operating a warehouse and distribution center at 11225 W. County Line Road. The Granville neighborhood, where the property is located, has seen significant disinvestment since Northridge Mall closed in 2003. Several big box stores have closed, in addition to Target, and some have been converted to industrial uses.
ond Empire architecture, Jeffers said. The style became popular between 1895 and 1900 through the redevelopment of Paris under Napoleon III’s Second Empire. Other examples of Second Empire architecture include Philadelphia’s City Hall building and the Old Executive Office Building in Washington, D.C. “When I say there is nothing like the Mitchell Building, it is almost literally true,” Jeffers said. “There is so much iconic architecture on this block. I want the new building to reference this history, but not compete with it.” The third iconic building on the block is the historic Button Block Building at the northeast corner of North Water and East Clybourn streets that was sold to Kenosha-based Bear Development LLC in 2014, and converted into a Homewood Suites hotel last year. Jeffers plans to complete the new building in 2020. He has created a glass curtain along the south side that will jut out, reminding people this is a modern office development. “We in no way, shape or form want to be a historical reproduction,” Jeffers said. “We are a modern 2020 building. It is something that has to balance these two competing concepts of modern design and architectural history, and I think we’ve done that.” n
TUSHIE MONTGOMERY ARCHITECTS
from the commission because it is located in the East Side Commercial Historic District. Jeffers purchased the site in January from Uihlein Properties LLC for $825,000, with plans to build an eight-story, mixed-use residential building with 108 apartments. In September, he submitted plans to the city for a nine-story office building instead. The project includes one-and-a-half stories of retail space, totaling about 10,000 square feet on the first floor, and four stories of parking hidden within the building totaling 190 spaces. The remaining five floors are for office space, totaling about 103,000 square feet. Jeffers said the building he wants to build is one that will respect the historical landmarks on the block without being a reproduction. The project is located on the downtown Milwaukee streetcar line between the Mackie and Button Block buildings, at the northwest corner of North Broadway and East Clybourn Street. Working with Engberg Anderson Architects, Jeffers said he has designed a building that complements two of his other projects – the restoration of the Mackie and Mitchell buildings – with a masonry panel made of Northern Ohio grade sandstone. The stone is found in only a handful of quarries across the country and it is expensive, Jeffers said, but it is the same stone on the exterior of the Mackie Building, 225 E. Michigan St., and the Mitchell Building, 207 E. Michigan St. “We can get (the stone) and incorporate it into the building’s design,” Jeffers said. “This building has to compete with three iconic buildings, but we don’t want it to compete head-to-head.” The Mitchell and Mackie buildings were developed in 1876 and 1879, respectively, by Alexander Mitchell, a Milwaukee banker who served in the U.S. House of Representatives. The Mitchell Building is one of only six buildings left in the United States that is an example of Sec-
NEW PERSPECTIVE WAUKESHA 1
Appleton-based The Boldt Co. is partnering with Eden Prairie, Minnesota-based New Perspective Senior Living LLC on a $30 million, 128-unit senior housing project in Waukesha. The development, to be called New Perspective Waukesha, is planned for a 5.7-acre site at the southeast corner of East Broadway and Les Paul Parkway. Plans call for 92 independent living and assisted living units and 36 memory care units. Offering three types of apartments has become an industry standard as many older adults have preferred an “aging in place” model. New Perspective Waukesha will be a three-story, 155,544-square-foot building with underground parking. Construction is slated to begin in November. The project will take about 18 months to complete. NORTHWEST PER 2 NEW PERSPECTIVE WAUKESHA WISCONSIN OWNER: The Boldt Co.WAUKESHA, and RNT Development LLC/ New Perspective Senior Living LLC SIZE: 128 units COST: $30 million
CORRINNE HESS Reporter
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22 / BizTimes Milwaukee OCTOBER 15, 2018
health care squeeze Employers in state hit by higher costs
BY LAUREN ANDERSON, staff writer An employee of Waukesha-based Weldall Mfg. Inc. recently needed surgery for carpal tunnel syndrome and traveled to Rockford, Illinois for the procedure. The hour-and-a-half drive took the employee outside of Wisconsin, where the average cost of the surgery and accompanying pre- and post-procedure visits is $7,714, to Illinois, where that same procedure costs an average of $4,547. Weldall, a mid-sized, family-owned metal fabrication and metal processing manufacturer, has been watching health care costs escalate for years. But the company has become much more aggressive over the past two years as it seeks to manage expenditures in a state where studies suggest health care can be burdensomely expensive. A 2016 study from the Health Care Cost Institute found the price of medical services in Wisconsin were the second highest in the nation, according to claims data for the nation’s
largest insurance companies. According to the study, costs for 235 common treatments and examinations for commercially insured patients under the age of 65 were 81 percent higher in Wisconsin than the national average. Like a growing number of employers throughout the state, Weldall is looking to dismantle the opacity around health care pricing, recognizing the unsustainable nature of ever-rising premiums and costs shifting onto employees. In the case of the carpal tunnel surgery, the company worked with a third-party administrator to negotiate a fixed price for the procedure from a provider in Rockford. In the end, Weldall saved thousands of dollars and under its health plan, the employee didn’t spend a dime out of pocket. “A lot of people are very cautious about taking a leap,” said David Bahl Jr., plant manager at Weldall. “They are used to calling up their insurance company and getting a quote for the next year. But we find those prices are unacceptable, and we still want to maintain a very good benefit package for employees.” According to the most recent data from The Henry J. Kaiser Health Family Foundation, Wisconsin ranked seventh in the nation for its per-capita private health insurance spending. Wisconsin’s average of $5,159 placed it in the company of largely East Coast states, including Massachusetts ($5,302), Connecticut ($5,187) and New Jersey ($5,081). By comparison, neighboring Minnesota’s spending ($4,603) nearly matched the national average ($4,551).
Employer impact Data indicate employers face a particular burden in covering their employees. When it comes to the average annual family premium for employer-based health insurance, Wisconsin employers’ contribution ranked the state eighth highest in the nation, according to Kaiser Foundation data. Employers paid $13,660 per enrolled employee, compared to the national average of $12,754. For employers, it’s a particular cause for concern as they seek to retain and attract employees in a tight labor market. “As employers, especially manufacturers, fight for employees, we’re trying to put the best package out there for compensation and health care,” Bahl said. “So we’re not only focused on wages, but (also) benefits, as a way to bring people to the company.” Suzanne Kelley, president and chief executive officer of the Waukesha County Business Alliance, said health care costs concern her members, particularly in light of current workforce shortages. “I would say our member businesses agree that health care costs are a challenge for them,” she said. “That said, workforce is still the No. 1 issue they are concerned about, but health care is part of that equation. In general they are dealing with rising health care costs, and it’s challenging. In Wisconsin versus other states, it puts them at biztimes.com / 23
a competitive disadvantage where health care may be more affordable. And they have to deal with that either through less investment in equipment, constraining employee salaries or less on R&D.”
Contributing factors Health care system mergers, which analysts say have accelerated since the federal Affordable Care Act took effect, tend to be a driver of costs. While the benefits of consolidation are better integration of care and less duplication of clinical services, those operating cost reductions don’t necessarily translate into price decreases. Historically, hospital mergers have increased the average price of hospital services by between 6 percent and 18 percent, according to the National Council on Compensation Insurance. “If there is less competition, there is a tendency to drive up price,” said Tom Hefty, a retired chief executive officer of Blue CrossBlue Shield United of Wisconsin. “That’s true whether you’re talking about automobiles or beer or health care.” Milwaukee-based Aurora Health Care’s announcement in 2017 of its merger with Illinois-based Advocate Health Care – a union that was finalized in April
– occurred during a record year for merger and acquisition activity among hospitals and health systems nationally. It came a year after another significant deal: St. Louis-based Ascension’s acquisition of Wheaton Franciscan Healthcare, which brought together the Glendale-based system and former competitor Columbia St. Mary’s, along with Ministry Health Care and Affinity Health System. “Every year there is another one, to the point where there is really little left to consolidate,” Hefty said. Still, reported health care data often lags, sometimes by several years, making it difficult to track trends related to costs in real time. The effect of Ascension’s acquisition of Wheaton Franciscan Healthcare and the Advocate-Aurora merger, for example, are too new to be reflected in the most recent data sets. Ascension declined to comment on this report. In addition to the merger of systems, many of Wisconsin’s health systems have engaged in vertical consolidation, acquiring many formerly independent physicians, which can also drive prices up. “If you compare a fairly highly consolidated state, which I think Wisconsin is relatively high, to a state like Maryland, which has higher numbers of independent providers of medicine, you see lower prices in Maryland than you do in Wisconsin,” said Scott Adams, a professor and the chair of the economics department at the University of Wisconsin-Milwaukee. “In some states, though, consolidating might be the best operation for that state in order to serve its citizens, but it does have this other side to it, and that is higher prices.” With mergers and acquisitions creating more powerful provider systems across the state, analysts argue that Wisconsin’s health care environment skews in favor of providers, with their size and scope giving them leverage when negotiating with insurers. “Now if (an insurance company) can’t come up with a deal with Advocate Aurora, they have virtually no market share of supply-side doctors from about north of Green Bay to south of Chicago, so no one would buy that network,” said Jim Mueller, president and CEO of Waukesha-based health benefits consulting firm Mueller QAAS LLC.
Benefits of consolidation Brian Potter, senior vice president of finance and chief operating officer of the Wisconsin Hospital Asso24 / BizTimes Milwaukee OCTOBER 15, 2018
ciation, said consolidation has also occurred on the payer side of the equation with health insurance company mergers. Meanwhile, hospital industry representatives argue provider consolidation can be a driver of greater efficiencies. “A big benefit of consolidation, besides cost-cutting opportunities, is in regards to better care coordination that comes with integration,” Potter said. “Unit price is one component of overall cost, but so are utilization rates and outcomes. Wisconsin has demonstrated excellence in the quality of care – which also reduces overall cost to the system. Integration plays a role in Wisconsin’s success.” Discussions about costs can’t be divorced from considerations of quality, particularly when comparing from state to state or even city to city. “Unit price isn’t the only dynamic in play with regards to overall cost,” Potter said. “For example, let’s say the unit price of a knee replacement is higher in one state on average than another. Does that mean it is really less expensive? What if the state with the lower unit price also had a higher readmission rate for those knee replacements and worse outcomes?” In 2016, Aurora Health Care and Anthem Blue Cross and Blue Shield launched a 50-50 joint venture, aligning the incentives of two players that historically have had an adversarial relationship – provider and insurer. The venture, Wisconsin Collaborative Insurance Co., is aimed at improving value and efficiency of health care services, thereby reducing costs by keeping people healthier. Officials point to the positive outcomes of the venture. Among the company’s Well Priority product’s 35,000 large commercial employer group members, emergency room utilization is down 11 percent and inpatient admissions are down 18 percent.
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“All of our clinical and operational decisions are guided by our relentless pursuit of providing the highest quality of care at the lowest cost for our patients,” said John Foley, president of Wisconsin Collaborative Insurance Co. “It’s important to not just focus on the per unit cost of certain services, because data continues to support our view
MUELLER AND HABERICHTER PHOTOS BY: LILA ARYAN PHOTOGRAPHY
but more importantly, a trend spanning over a decade demonstrating a sustained commitment to affordable, accessible, quality health care that our members deliver each and every day.”
Other factors that contribute to higher health care expenditures are tied to utilization. Analysts note that Wisconsin’s population is older, a demographic that requires more services. “We don’t have the oldest population – that’s average and well above average,” Adams said. “So if you compare Wisconsin to Utah, for example, that has a younger population, we’re at a disadvantage in terms of resource utilization purely because of the age of our population.” Wisconsin’s adult obesity rate also is above average at 32 percent, ranked 21st in the nation, according to a recent Robert Wood Johnson Foundation study. “When paying for obesity-related ailments that occur, you will have higher utilization of health care services,” Adams said.
Cost of care Meanwhile, recent indicators suggest the trend of rising costs could be decelerating. Consulting and actuarial firm Milliman recently forecast that the cost of health care for a typical family of four covered by employer-sponsored insurance will increase 4.5 percent in 2018, the lowest increase in the Milliman Medical Index’s 18-year history. In 2018, the cost
Utilization drives costs
that when we manage the continuity of care within our system through our population health model, we are able to drive efficiency and quality improvements, enhance health outcomes and bend the cost curve. As a result, we provide more value to those who receive, deliver and pay for care.” Depending on the study, Wisconsin consistently ranks highly for the quality of its health care. U.S. News & World Report recently placed the state at 15th in the country for quality, based on Medicare quality, hospital admission rates, nursing home quality and preventable hospital admissions. Another recent comparison of states’ health care quality from the federal Agency for Healthcare Research and Quality named Wisconsin as the best in the Midwest and fourth in the nation. It’s consistently ranked in the top four states, and was ranked first in the nation in 2006, 2008 and 2017 on the report. “Providers, administrators, patients, and families are working together in effective partnerships, across care settings locally and regionally – and that shows,” said Eric Borgerding, president and CEO of the Wisconsin Hospital Association, of the AHRQ rankings. “Wisconsin is a national leader and is known for its high-quality, high-value health care. These rankings reflect not only outstanding performance today,
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for a typical family of four was $28,166. Several trends could be contributing to the cooling effect. Analysts point to narrow networks providing discounts on health prices; on-site work-based clinics; a push toward bundled prices and generic drugs; and providers’ growing telemedicine offerings. “It’s started to change,” said Eric Haberichter, co-founder and chief executive officer of Milwaukee-based Access HealthNet. “Costs are trending down now. A lot of local, independent PPOs have worked some very good deals. The providers themselves are forming new, narrow networks within accountable care organizations that offer some pretty steep discounting.”
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STORY COVER Another emerging trend: employers are beginning to demand more transparency from providers. While general supply and demand principles play a role in determining costs, the health care industry is unique in the way it operates because of one key difference: consumers generally don’t know the cost of what they are buying. “If there is no competition based on price, because there is no transparency, there is no ability for buyers to make a value-based decision,” said Ross Bjella, chief executive of Alithias Inc. “And therefore there is no advantage to a provider who lowers the price. Therefore, none of them do.” Access HealthNet, a Milwaukee-based startup, has emerged in response to that issue. The company serves as an intermediary between providers and employers to bundle health care services and offer each for a predetermined flat fee. It’s built on the idea that consumers want to purchase health care services like they would any other product, knowing exactly how much it costs upfront, not being taken by surprise by a bill 30 days later. “It’s really about supply chain management,” Haberichter said. “It’s predictable. People who crunch numbers for a living like predictable things – that the cost of 100 of X equals Y. In the normal
system, the price is wildly variable. For folks that crunch numbers, that’s kind of scary.” There are reasons providers shy away from disclosing their costs. For one, it could put them at a disadvantage when negotiating with insurers. Moreover, there are many factors making health care expenditures difficult to precisely quantify, including accounting for the percentage of Medicare and Medicaid patients, along with those who don’t pay at all. Still, employers and employees, having experienced escalating costs for decades, are beginning to seek greater transparency around just how much they are paying for their health services. Despite low unemployment, many middle-income employees have seen their wages plateau as larger portions of their compensation in recent years is directed toward benefits. Bjella, the former president of DDN, a division of Milwaukee-based F. Dohmen Co., knew something needed to change as he watched the cost of health care for his employees reach an unsustainable point in the mid- to late-2000s. “We were increasing the deductibles in the insurance costs for our employees and it became apparent to me that the average employee would very quickly no longer be able to afford the cost of their care,” he said. Around that time, Bjella heard John Torinus,
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chairman of West Bend printing company Serigraph Inc., speak about the company’s aggressive attempts to tamp down health care costs. Bjella approached Torinus, who had recently written a book on his company’s efforts, asking Torinus about developing a platform to help more companies manage costs. In 2011, Bjella founded Alithias Inc., a Milwaukee-based startup that provides employers with analytics services to help tamp down costs. Alithias offers what Bjella calls “generation two transparency.” Generation one, Bjella said, was where the company got its start: providing estimated costs in columns and rows on a website to help consumers make more informed choices. It was a good start, but not enough to change behavior, he said. “What we learned is that there are so many moving factors in health care and so many more questions people have that they really need to talk with someone about them,” he said. “So we hired care navigators and benefits advocates to help people understand the economic impact of their health care decision and understand how to best utilize their benefit plan. And that’s really when the company started to take off.” Alithias’ platform helps employers find quality providers for the lowest price, helping negotiate fixed rates for those services. With the Eau Claire and Rice Lake areas
historically experiencing high health care costs, employers in northwest Wisconsin are increasingly traveling outside of their market for procedures, Bjella said. Faced with the option of an average $46,000 price tag on a knee replacement bundle in Eau Claire, they will instead send their employees to Minneapolis, where the same proce-
la said. “We’ve literally moved millions of dollars of surgical business out of the state last year, or to providers like NOVO.” Weldall has worked with Alithias for the past two years. Being self-insured, Weldall has made a big push to educate its employees about being proactive consumers of health care. They are en-
“If there is less competition, there is a tendency to drive up price. That’s true whether you’re talking about automobiles or beer or health care.” — Tom Hefty, retired CEO of Blue Cross-Blue Shield United of Wisconsin
dure is performed by a similar quality provider for $22,000 to $29,000, he said. Alithias also coordinates with NOVO Health in Appleton, a network of independent specialists who have bundled their services to contract employers, thereby providing clients with fixed, bundled rates. “Nearly all my employer clients in Eau Claire offer incentives for their employees to travel,” Bjel-
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couraged to shop around, not just going where their doctor referred them, said Alesia Butera, human resources manager at Weldall. For wellness and preventative care, the company offers employees those services at a QuadMed clinic at no cost to them. For larger procedures, the company steers employees to providers with whom Alithias has negotiated fixed, flat rates. It even incentivizes them
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to do so, offering employees a cash incentive of $100 to $1,000 for choosing a quality lower-cost provider. And under the health plan, the employee doesn’t pay a co-pay or deductible. “They won’t even see a bill,” Butera said. Those efforts have caused employees, who historically have been more concerned with their own contribution to health benefits than their employers’ share, to consider the total cost of coverage for the company. “We explained to employees that if we save costs, we will have better profitability and can share that through 401(k) contributions, through new equipment,” Butera said. “It’s really starting to take off now that we’re rounding year two.” Weldall this year expects to save $60,000 from utilizing Alithias’ services. Bjella said attention should be paid to what small- and mid-sized companies are beginning to demand from their health care plans, as it could begin to push the needle on lowering costs. Weldall leaders agree. “This is what’s really going to drive a competitive market and drive those hospital costs down,” she said. “With Wisconsin being so high for health care costs in the country, if we can get more companies involved in programs like this, we can work together to drive the overall costs down and increase competition.” n
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BUSINESS LEADERS FORUM JOURNEY TO THE C-SUITE AND KOHLER’S EVOLUTION: A LEADERSHIP PERSPECTIVE David Kohler President and Chief Executive Officer Kohler Co. THURSDAY, NOVEMBER 15, 2018 11:45 a.m. Registration 12:15 p.m. Lunch 12:45 p.m. Program Marquette University Alumni Memorial Union, Monaghan Ballroom 1442 West Wisconsin Avenue Register online at marquette.edu/businessleadersforum by November 8.
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biztimes.com / 27
Special Report HEALTH CARE: SENIOR LIVING
Pet therapy can benefit senior living residents BY MOLLY DILL, staff writer A NUMBER OF SCIENTIFIC STUDIES have shown the use of pet therapy has a measurable positive impact on heart rate, blood pressure and depression and anxiety, particularly among the elderly. As a result, senior living facilities are increasingly integrating pets into their enrichment activities for residents. Pets Helping People Inc., a nonprofit that helps dog owners train their pets for visits to the elderly, is even based within a senior living facility, Congregational Home in Brookfield. “Our primary focus is to assess and to train owners and their dogs to go out into the community,” said Amy Dodge, executive director of Pets Helping People. “We have our 20th year this year. Each year, we graduate probably between 30 and 40 handler teams.” Congregational Home has assisted living, independent living and memory care wings, and Pets
28 / BizTimes Milwaukee OCTOBER 15, 2018
Helping People does its training throughout the residential community, Dodge said. PHP uses Congregational Home’s activity center, boardroom and classroom to conduct assessments, orientation and bedside training for pets and their trainers, said Cindy Conkey, director of activities at Congregational Home. Once PHP trainees are finished training, they often begin doing visits to Congregational Home residents, she said. The facility also allows residents’ family and friends to bring in their pets, so there are usually two to three pet visits on the calendar each week. “We do a ‘Hug a Pup’ program here with our staff and their furry friends,” Conkey said. “We’re encouraging family and friends to bring in their pets at any given time as long as we have updated records.” Because it’s able to directly apply lessons onsite, PHP conducts a unique four-week, hands-on class with its students and their pets, Dodge said. “We go into the community and meet with the residents, and then go back into our classroom and debrief – what worked, what didn’t work,” she said. Once a student graduates from PHP with a final test, he or she must show proof of a $1 million insurance policy covering the animal, and then is
free to begin visiting area senior living facilities with which PHP has relationships. “We are only in southeast Wisconsin, but we do cover as far as up to Manitowoc, over to Madison and down to the border,” Dodge said. “We have about 185 active teams.” When new residents join the Congregational Home community, the intake questionnaire reveals whether they have an aversion to dogs, and staff takes note of that when a pet is visiting, Conkey said. In the pet therapy world, bringing dogs to meet with people in a therapeutic manner is called an Animal-Assisted Interaction, Dodge said. The trainer always asks if it’s alright to approach a resident, and the dogs are trained to be very obedient of the “stay” and “leave it” commands so they don’t eat medications that may fall on the floor or go where they shouldn’t. “You always encounter different types of meetings,” Dodge said. “Some people will be less responsive, some people will be very sad or very excited. We advocate for the owners to be the representative of their dogs.” There are some encounters that leave the trainers, staff and residents emotional, she said. Sometimes, a resident will be despondent and the dog
Karen Corlyn and her dog, Mitzvah, visit Adult Day Services of Southeast Wisconsin LLC in West Allis.
lights them up and increases their socialization. “We call them goosebump moments. The dog and to a degree, the handler, it’s a non-judging (interaction),” Dodge said. “There’s no set agenda, the person is interacting with the dog and the handler and it’s just canine love. It doesn’t work for all residents
Ute Pagel and her dog, Milo, visit Clement Manor in Greenfield.
because obviously not all people are dog people.” Conkey said there could be liability in any situation, but in the time she’s been at Congregational Home, there’s only been one minor incident with a dog. It’s one of several animal interactions the facility offers for its residents,
including an aquarium and an aviary. “Residents, how they react to animals is amazing,” Conkey said. “If anyone’s ever having a bad day, they certainly make your day better. Your overall wellbeing and your health is just so enhanced by having these things in place.” n
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PAUL GAERTNER | WHITE DOG PHOTOGRAPHY
Special Report LEADERSHIP DEVELOPMENT
Attendees at the 2017 90 Ideas in 90 Minutes event.
Leadership tips from Milwaukee leaders Top strategies for success shared at 90 Ideas in 90 Minutes Eight Milwaukee-area leaders described their approaches to overcoming their toughest challenges, including their best advice, leadership insights and secrets to success, at BizTimes Media’s recent 90 Ideas in 90 Minutes event. The event, sponsored by Concordia University Wisconsin, was held on Thursday, Oct. 11 at the Italian Community Center in Milwaukee. Each of the eight speakers was given 10 minutes to present his or her 10 leadership ideas, and then participated in a Q&A with the audience, followed by a reception. Concordia also shared 10 leadership tips. The speakers were: »» THERESE BAILEY, founder, ZenZen Yoga Arts »» ELANA KAHN, director, Jewish Community Relations Council, Milwaukee Jewish Federation »» DAN KATT, co-founder and chief executive officer, Good City Brewing »» ERIK KENNEDY, community impact coordinator senior, Aurora Health Care »» JIM TARANTINO, founder, Capri Senior Communities »» MAURICE THOMAS, founder and executive director, Milwaukee Excellence Charter School »» ANDREW WEINS, chief operating officer, JDog Junk Removal & Hauling United »» SHERRY ZHANG, founder and CEO, GenoPalate Inc. Here is a taste of the speakers’ top ideas. To see all 90 ideas, visit biztimes.com/90ideas. 30 / BizTimes Milwaukee OCTOBER 15, 2018
THERESE BAILEY: My formula for happiness. “Happiness comes from releasing grievances, hostility and blame as you interact with others. You can choose to be happy or be stressed out. A line from one of my favorite songs by the Eagles, ‘…you keep carryin’ that anger, it’ll eat you up inside.’ Too often we use circumstances and events to justify being unhappy. Stop listening to your stories of grief and pain and start living your life. Take responsibility for each and every thing that happens and find your way to forgiving yourself for whatever errors you believe you’ve made.”
ELANA KAHN: Look away, if just for a moment. “Productive people often value putting our nose to the grindstone and doing, doing, doing, with hyperfocus and diligence. Sometimes, however, we unintentionally narrow our field of vision and lock into a false set of limited choices. We can feel stuck having to choose between two bad choices. Often, however, there are other options that reveal themselves to us only when we step back and dislodge from our patterns of thinking. We can do that in multiple ways, including selfless listening, reading fiction or poetry, watching film, meditating – somehow taking leave of our patterns of thinking, allowing us to see situations with fresh eyes and often revealing options that we couldn’t otherwise imagine.” EVENT SUPPORTING SPONSOR:
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DAN KATT: Play to your strengths. “While it is important to be aware of your weaknesses, I am convinced that focusing on your strengths will always lead to more personal and professional success. Know what you are good at, and put yourself in the best position to perform at the peak of your powers. Know your weaknesses and find others to complement you.”
JIM TARANTINO: When you find the right leadership, let them lead. “Our company is fortunate to have attracted leaders that are highly skilled, believe in our mission and are willing to share their talents and insights. They are dedicated to advancing our mission of building and operating the highest quality living environments for our residents. To be dynamic, I believe the leader needs to know that he or she drives the activities in his or her particular area of expertise. If this is working, there should be robust discussion on the leadership team level as the leader’s ideas are blended into the overall mission of the organization.”
ERIK KENNEDY: Remove your lens. “Removing your lens to understand and respect others while embracing change correlates with, ‘Don’t judge a book by its cover.’ I’ll be the first one to admit that this is hard for me because it is in our nature to pass judgment; however, I strive each day to embrace each person, situation and moment with respect. For us to move forward as a community while overcoming challenges and obstacles, we need to embrace change and remove our lens. Challenge the idea, but not the person.”
32 / BizTimes Milwaukee OCTOBER 15, 2018
ANDREW WEINS: Embrace the hustle. “You don’t get anywhere in life without getting started. The hustle is chasing what you think you want to do. It’s the necessary steps to get you where you think you need to be right before you realize you’re close. In the hustle, you have the most opportunity to make mistakes. Make them early; make them often. Use this time to figure out if you’re going the direction you want to go. Embrace it.”
SHERRY ZHANG: Curate your network of people. MAURICE THOMAS: Speak less, listen more. “My best ideas come from other people. I’ve traveled the world learning about education. It’s a field where everyone has an opinion because we’ve all (for the most part) had some form of education – making us all experts. In this field, I’ve learned that the best ideas come when I’m able to sit with my thoughts and all the thoughts of the ‘experts’ I’ve come across.”
“When we are growing our business, we will meet many new people. How do we manage the ever-growing network and develop that into our support system? I have found taking each relationship seriously has helped me in building a rewarding experience with my network. Be serious about each new relationship. Be serious about each existing relationship. Respect all people you meet in life and show them your respect. Saying no is just as responsible as saying yes. Don’t cumulate your network, cultivate it. A network is like information; you need it to be as large as possible. But it adds little value to your cause if you don’t know how to curate it.” n
Partnership MKE helps business, community leaders break down bias BY LAUREN ANDERSON, staff writer MILTON COCKROFT AND ANDREW MEERKINS
plan to catch a Milwaukee Bucks game in the next few weeks to get to know one another better. Cockroft leads a nonprofit he founded to help low-income students prepare for college and careers. Meerkins is an attorney in downtown Milwaukee. Cockroft is in his 50s, the father of adult children. Meerkins is in his early 30s, the father of three young children. Cockroft is black. Meerkins is white. Their professional and social circles might not have otherwise intersected, but the two men have been paired together to build an intentional friendship over the next eight months. Meerkins, an associate and litigation lawyer with Foley & Lardner LLP, and Cockcroft, execu-
Andrew Meerkins, associate and litigation lawyer with Foley & Lardner LLP, and Milton Cockroft, executive director of Pathways Milwaukee Inc., at the Partnership MKE kickoff.
tive director of Pathways Milwaukee, are among the community and business leaders participating in a new initiative called Partnership MKE. The eight-month program, spearheaded by United Way of Greater Milwaukee & Waukesha County, is taking participants through a leadership
development program and curriculum from the YWCA of Southeast Wisconsin and the Anti-Defamation League of Chicago. Its monthly workshops touch on a variety of issues, including race, gender, sexual orientation, religion and ableism, designed with the lens of eradicating intolerance and
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prejudice, while creating a safe space to wrestle with those sticky subjects. Outside of the workshops, participants meet up with their partners for a casual meal, a cup of coffee or other social outings to build a relationship with one another and discuss what they are learning. Cockroft said a desire to make actual substantive change in the community motivated him to join the program. “You try to figure out what’s actually making a difference and an impact; how do you move the needle on education, racism, poverty? How do you make an impact?” he asked. “The concept of pairing people from different walks of life to get to know one another, I thought it was a great opportunity to do something that could make a difference and move the needle.” Partnership MKE builds on the model of The Mosaic Project, a program that was led by the Milwaukee Jewish Federation and produced more than 600 alumni during its decade-long run, which ended in 2010. This iteration of the program was born out of the coalescence of several incidents in the city, including civil unrest in Sherman Park and the anti-Semitic threats made against the Harry and Rose
Samson Jewish Community Center in Whitefish Bay, said Joel Peterson, manager of diversity development and community engagement at United Way of Greater Milwaukee & Waukesha County. “There was a lot brewing at the time,” he said. “And we thought with all the unrest in the city, this is, unfortunately, a great time to have the city intentionally wrestle with the tension that is here … If we don’t address it, if we don’t create a space where people can talk about it, then we’re going to keep going with the same rhetoric where we talk about the issues but nothing is really done.” United Way launched the program in August. Participants represent a variety of corporations and nonprofit organizations. The hope is that participants – many of them decision makers in their workplaces – will leave with more empathy and a better understanding of how to address biases, which could create a ripple effect in the city. Peterson recognized that most people likely have already gone through diversity training in the workplace. To take it a step farther, the experience had to be relational, he said. “Partnership MKE gives information, but it also gives you a partner who is different from you,” he said. “On a one-on-one level, you can discover
your blind spots. Bias has to be addressed on a oneon-one level.” To pair partners, organizers used an algorithm developed by Brookfield-based SysLogic Inc. that considered participants’ answers to a survey regarding their personal political beliefs, backgrounds and religious affiliations. They were ultimately matched with people from whom they were the most dissimilar. “It was like eharmony, but backwards,” Peterson said. “We have mechanisms in our brains that make us comfortable to look at and talk with people who are similar to us.” Mara Duckens, executive director of St. Francis Children’s Center, joined the program to grow as a leader. She said she wants to learn how to create a safe environment for her team members, in which everyone’s ideas are respected. As a mother, she also wants to pass on what she has learned to her daughter. “The idea of reflecting on one’s own biases is a very powerful thing,” Duckens said. “And it seems that it is especially important in the times in which we’re living. There seems to be so much anger and vitriol around differences in beliefs and divergent perspectives.” As a nursing talent liaison for Aurora Health
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Care, Erika Colón is focused on developing a diverse pipeline of talent throughout the health care system. She views the work of addressing her own biases, while also developing as a leader, as integral to her job. “I want to be a more well-rounded and fair and good leader,” she said. “I want to be a better leader to the people on my team, to understand them better and consider everything they bring to the table.” Wisconsin State Rep. David Crowley and Angela Quigley, co-owner of wedding vendor guide and blog Married in Milwaukee, both grew up in Milwaukee. Aside from that, Crowley, a black male politician, and Quigley, a white female business owner, have had very different upbringings and life experiences. Those differences have come out in the pair’s monthly meetings. But Crowley and Quigley have also learned more about where they come from, how they have come to believe the things they do, and how those beliefs have changed over the years. “Having a confidential space to talk about the thoughts that are deep in the corner of your brain with someone who is different from you – those are the ways to overcome bias,” Quigley said. “And that’s not something that will happen from reading a Facebook post. It’s sitting down with someone face-to-face, saying those things that you may
be scared to say. Saying them out loud can really cause you to reflect that maybe I’m not right; maybe I do need to work through this.” Quigley said she has been challenged to confront her own biases, while Crowley said he was challenged when he learned about different viewpoints on sexism and gender norms. These topics are uncomfortable. But, Crowley said, becoming uncomfortable is all part of the process if it serves a larger goal of building bridges. “There are conversations that we try to run away from,” he said. “But you can’t necessarily look at confrontation as a bad thing. At some point, if we want to come to a place of acceptance, we’ll have some backlash because we’re getting to the point of understanding.” The tone in the room is a refreshing departure from what often occurs in online discussions, said Lisa Valenti-Jordan, an associate and intellectual property attorney with Foley & Lardner. “Having people there who want to talk about difficult issues, I think, is one of the most important things we can do right now,” Valenti-Jordan said. “We’re polarized because we’re unwilling to talk about it. We think, ‘I know what I know and I am right.’ That is just so hopeless to me. But there is
LaShawndra Vernon, executive director of Artists Working in Education, and Linda Benfield, managing partner of the Milwaukee office of Foley & Lardner LLP, at the Partnership MKE kick-off.
hope in conversation and in a willingness to meet and try and maybe be offended. But I think you get a lot more grace in a situation where everyone is willing to be there.” n
Nonprofit Excellence Awards finalists 2018 Each year, BizTimes Media honors reader-nominated corporate citizens and nonprofits for their ongoing commitment to making Milwaukee a better place to live, work and play. BizTimes is pleased to announce this year’s finalists: Corporate Citizen of the Year • Cousins Subs • First Bank Financial Centre • Komatsu Mining Corp. Corporate Volunteer of the Year
FRIDAY, NOVEMBER 2, 2018 7:30AM - 9:30am | Italian Community Center
• Marcell Jackson, GE Healthcare • Tim Stewart, DeWitt Ross & Stevens In-Kind Supporter • ManpowerGroup • Marcus Corp. • Z2
Trauma’s Effect on Milwaukee’s Workforce Psychological trauma knows no boundaries, damaging individuals in urban and rural areas and harming the social and economic systems in which they live. In the workplace, trauma often translates to absenteeism, difficulty establishing professional relationships and poor decision making. Learn more about trauma from Dr. Mike Lovell, president of Marquette University and Amy Lovell, president of REDgen, and see how you can help guide our community toward solutions. Immediately following the Lovells’ presentation, we will present the Nonprofit Excellence Awards. Adrienne Pedersen, co-anchor at WISN 12 News This Morning, will emcee the awards presentation.
Next Generation Leadership • Erik Kennedy, Aurora Health Care • Christine Richards, Richards Group Allstate Nonprofit Collaboration of the Year • Dominican Center for Women Inc. and Hunger Task Force • Elevate Inc. • Outreach Community Health Centers Nonprofit Executive of the Year • Lynda Kohler, SHARP Literacy Inc. • Angela Mancuso, The Women’s Center Inc. • Ann Petrie, Ronald McDonald House Charities Eastern Wisconsin Nonprofit Organization of the Year-Large • Discovery World Ltd. • My Choice Family Care • Luther Manor Nonprofit Organization of the Year-Small • Cathedral Center Inc. • CORE El Centro
Dr. Mike Lovell
• Literacy Services of Wisconsin Inc. • Northwest Side Community Development Corp. Social Enterprise • Brew City MKE Beer Museum • FEI Behavioral Health
• Milwaukee Habitat for Humanity Lifetime Achievement • The Klumb family, KS Energy
Register Today! | biztimes.com/npawards
Startups shouldn’t have to pay to pitch They need all the support they can get The Wisconsin Early Stage Symposium put out a call for startup companies to make pitches. I need to explain why I haven’t been spreading the word. On the surface, pitching at the Early Stage Symposium is a no-brainer. The Wisconsin Technology Council says its conference, which will be in Madison Nov. 7 to 8, should attract more than 600 attendees. Most of the state’s angel and venture investors will likely be there. But here’s my problem: Startups have to pay. To be considered to pitch, startups have to register to attend the conference: $179 for a startup’s first attendee and $129 for each additional team member, according to the Early Stage Symposium’s fee schedule. Startups are the scarce resource, the crown jewel of any ecosystem; they’re the organizations that are taking the most, in fact an inordinate amount of, risk. The way we see it at Milwaukee Institute, we need to give these risk-takers as much support as possible. That’s why our inaugural Midwest TechConnect event within Milwaukee Maker Faire charged corporations for booths but gave startups their booths for free. Northwestern Mutual Life Insurance Co., the event’s presenting sponsor, and Betty Brinn Labs, which produces Milwaukee Maker Faire, were on the same page with us. The Tech Council, formed in 2001, has scored
its share of wins for the ecosystem, the biggest of which is probably its leadership on the Qualified New Business Venture tax credits that started in 2005 for investors in Wisconsin startups. I understand that organizations have to make money. But the Tech Council receives $310,000 annually from the State of Wisconsin, in part to fund its efforts to increase seed and early-stage financing for startups. Should the nonprofit organization also be collecting money from startups for doing this work? The Tech Council’s large board of directors – it has nearly 50 members – is a Who’s Who of people involved in the Wisconsin startup scene. Why are they supporting the practice of making startups pay to pitch? The Tech Council says startups not chosen to pitch can get a refund if they don’t attend the Symposium. Why not open applications to all startups, whether they want to attend the conference or not? I bet that would result in a higher-quality pitch event. There are lots of other pitch events in Wisconsin. Bridge to Cures’ Healthcare Innovation Pitch, Capital Entrepreneurs’ Startup Showcase, gener8tor’s OnRamp conferences, the Greater Madison Chamber of Commerce’s Pressure Chamber, Golden Angels Investors’ AgTech Venture Day, and Startup Milwaukee’s Emerge, as well as pitch events in 12 cities during its Startup Wisconsin Week, to name a few. None of them charge startups to pitch – or to attend, for that matter. If anyone pays, it’s sponsors, investors, big corporations and/or service providers. The “pay to pitch” controversy is not unique to Wisconsin. There’s a national discussion, anchored by a well-known blog written in 2009 by Jason Calacanis, an entrepreneur and angel investor. Rich people (specifically, angel investors) shouldn’t be charging poor people (“startup entrepreneurs desperate for cash to fuel their dreams”) to hear their pitches, Calacanis says. From an economic perspec-
tive, the Tech Council and the State of Wisconsin seem more similar to angel investors than startups. The Tech Council isn’t the only organization in the country charging startups to pitch. The Keiretsu Forum, a California-based angel network, has sparked controversy because it charges startups thousands of dollars to pitch to its members. The Houston Angel Network, one of the country’s most active, used to charge, but several years ago stopped requiring startups to pay to pitch its members. And guess what? More applications came in. Every dollar startups spend to participate in pitches is one less dollar they spend growing their businesses. Startups are critical to a healthy ecosystem; we need to treat them well. One way to do that is to put them in front of potential investors without making them pay for it. n
KATHLEEN GALLAGHER Kathleen Gallagher is a Pulitzer Prizewinning writer and executive director of the Milwaukee Institute, a nonprofit that supports advanced technologies and highgrowth businesses to help the region thrive. She can be reached at firstname.lastname@example.org. biztimes.com / 37
The importance of being mindful Enabling better decision-making to help your bottom line Our Western culture has taught many of us that being successful means you must move faster and do more. But what if this was a lie? What if, instead, 20 percent of what you did had 80 percent impact on your bottom line, just because you were more mindful? While many people think of Buddhists, yoga and meditation when it comes to mindfulness, that is only a limited definition. Mindfulness is the psychological process of bringing one’s attention to experiences occurring in the present moment. When we lack mindfulness, we miss cues at the tip of the iceberg telling us an opportunity or potential disaster is about to occur. This opportunity may be a cue in a shift in the marketplace to tell us to adjust our strategic plan; or a cue from our customer who is subtly letting us know they are dissatisfied and looking elsewhere. Missing these cues can have an extreme adverse effect on our bottom line. In hindsight we see the signs, but we have already passed the exit or entrance leading us to a better choice. When we move about our life like a bull in a china shop, we can often become unaware of our surroundings and the imprint we leave behind. Moving about like an eagle, on the other hand, we soar high above the chaos and are wise on when and where to land. Mindfulness allows us to go about our business more intentionally, fearlessly 38 / BizTimes Milwaukee OCTOBER 15, 2018
and efficiently so we can make choices in alignment with our vision, values and goals. Here are three ways you can become more mindful and positively affect your bottom line: 1. Quiet your mind and be in the present moment Quieting your mind does not mean you have to sit with your legs folded and hum. It could mean you: drive in the car without music, take a longer shower or bath, go for a walk without your headphones, or go golfing without taking anyone along. The key is to quiet your mind and be more aware in the present moment. Harvard neuroscientist Sara Lazar, Ph.D., conducted a study to measure the effect on our brain when we take 20 minutes a day to quiet our mind and pay attention to the present moment. MRI scans showed, after just 8 weeks, the brain regions involving learning and memory, emotional regulation, sense of self and clear thinking were increased, while the region of the brain that elicited our “fight-flight” reactions shrunk! This means you will no longer be wasting your time reacting to situations, but instead will be mindful to respond with greater clarity and alignment to what matters most. 2. Detach from your fear for greater clarity Let’s face it: Stuff happens at work several times a day to flip your trigger! It could be something someone said or did or didn’t say or do that sends us into a reaction. Whether someone stole your idea at work, or didn’t follow through as promised, learning to mindfully detach from your emotional reactions will give you greater clarity. This can be done with my S.T.O.P. Technique. S - Slow down and breathe more deeply. T - Tune in to what just happened. O - Observe how you feel threatened. P - Perceive a new possibility to let go of your fears and just show up to be your best self.
3. Develop curiosity When you become more mindful, you will be more present and less reactive. This will allow you to notice more cues at the tip of the iceberg. As we increase our awareness and mindfulness, we can often become judgmental. Judgment masks our fear and keeps us stuck in what we are observing, believing it will never change. Curiosity, on the other hand, allows us to wonder how we can turn a lemon into lemonade. When you notice something that otherwise would trigger your fear and judgment, simply say to yourself, “Hmm…isn’t that interesting! I wonder, ‘How might I handle this in alignment with my vision, values and goals?’” This mindful thought will allow you to let go of your fear and transform the situation into what you desire most. By being more mindful, we can make more effective decisions in the moments of choice that matter! CHALLENGE: Where have you missed cues at the tip of the iceberg? How can mindfulness help you increase your bottom line? n
SUSAN K. WEHRLEY Susan K. Wehrley is the owner of BIZremedies, a coaching and consulting firm to help leaders be more aligned to their vision, values and goals. She is also the author of seven books to help leaders become more mindful. You can learn more at bizremedies.com, or contact her at 414-581-0449 or email@example.com.
Tip Sheet Staying productive while working at home
s the value of work-life balance increases, more and more professionals are choosing to work from their homes. Whether you take your work home daily or just periodically, your productivity partly depends on a functional and comfortable home office.
In an article published by SCORE, Adam Eyal, co-founder of EBB Motion, offers some suggestions for creating a work space at home. 1. Planning for available space Before setting up the office, take note of the things you’ll need, but make that list while also accounting for the space you have, Eyal says. Some things to consider: electrical outlets, cables, the size of your furniture and the positioning of your workspace. 2. Choosing the right desk and chair You will spend a considerable amount of time sitting in a chair at your desk, so comfort is important. Eyal recommends setting the computer screen at eye level, keeping your forearms parallel to the floor when using a keyboard, and ensuring your feet rest comfortably on the floor while seated. 3. Proper lighting If possible, position your desk near a window to allow for natural light to enter the space.
BizTimes Salutes our Veterans
Veterans Day 2018
Light exposure should be even, without glare, Eyal says, which will help you take “regular eye-breaks.” Looking out the window at a bird feeder or across the room at an indoor plant will allow your eyes to rest. 4. Get creative with storage Because many home offices lack space for filing cabinets and shelves, Eyal recommends a paperless option. Save all work documents on your hard drive or other cloud storage service. However, make sure you have a designated, organized area nearby to keep work supplies like a printer, pens, and manuals or handbooks. Keep an eye on supply levels so they don’t run out at important times, he says. 5. Blocking outside noise Dealing with domestic noise around your workspace is inevitable when working from home, Eyal says, but a pair of noise-cancelling headphones with an adjustable volume and microphone is a smart investment. n
B I Z T I M E S M I LWA U K E E • S P E C I A L C O V E R A G E Honor our service members and recognize the companies that go above and beyond to support them by advertising your logo on the front cover of BizTimes Milwaukee or within the Special Report. Space reservation:
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BizConnections NONPROFIT C H A R L E S E . K U B LY F O U N D AT I O N R E C E I V E S $50 0,0 0 0 GIF T Michael and Jeanne Schmitz, who lost their son Joey to suicide when he was a freshman in college, have given $500,000 to the Charles E. Kubly Foundation, a Mequon-based nonprofit that supports mental health awareness and suicide prevention. The gift establishes the Joey Schmitz & Charlie Kubly Endowment Fund, a fund honoring the memory both of the Schmitz’s son, and the son of Billie and the late Michael Kubly, whose son Charlie died by suicide in 2003. The Kublys established the
Charles E. Kubly Foundation to increase awareness of depression and support suicide prevention following Charlie’s death. Since its founding, it has granted more than $2.3 million to 273 community-based projects. The foundation’s board plans to leverage the gift to raise $1 million for the new endowment fund by the 2019 Beyond the Blues event. Since notification of the gift, the board has raised an additional $145,000 toward the endowment goal, bringing the total to $645,000. — Lauren Anderson
c alendar Women for MACC will host the 36th annual Couture for a Cure fashion show and luncheon on Nov. 6 at the Hyatt Regency Milwaukee, 333 W. Kilbourn Ave. in Milwaukee. Through a partnership with Gigi of Mequon, the show will feature fashions from the 2019 collection by Zac Posen, a judge on “Project Runway.” It will also include a silent auction and wine pull. All proceeds from this elite event support research that impacts the lives of children with cancer and blood disorders. More information is available at womenformacc.org. YWCA Southeast Wisconsin will host its 14th annual An Evening to Promote Racial Justice at 5:30 p.m. on Dec. 4 at the Marcus Center for the Performing Arts, 929 N. Water St., Milwaukee. At 5:30 p.m., Symone Sanders, a CNN political commentator and former national press secretary for Sen. Bernie Sanders’ presidential campaign, will deliver the keynote address, “Women Behind Campaigns: Racism & Sexism in Politics.” Registration opens on Nov. 1. More information is available at ywcasew.org.
D O N AT I O N R O U N D U P Cousins Subs Make It Better Foundation awarded a $4,000 grant to ReachA-Child for its Milwaukee Fire Department program. | The Zoological Society of Milwaukee received a $120,000 donation from power management company Eaton Corp. and a $100,000 donation from Thrivent Mutual Funds to support the zoo’s Window to the Wild Capital Campaign. | Potawatomi Hotel & Casino donated $100,000 to Make-A-Wish Wisconsin as part of the casino’s Heart of Canal Street campaign. | The Wisconsin LGBT Chamber of Commerce received a $10,000 grant funded by the Wells Fargo Foundation and administered by the National LGBT Chamber of Commerce. | First Federal Bank of Wisconsin awarded five scholarships of $1,000 to incoming freshman students of Carroll University in Waukesha.
FRIENDS OF BOERNER B O TA N I C A L G A R D E N S I N C . 9400 Boerner Drive, Hales Corners (414) 525-5653 | boernerbotanicalgardens.org Facebook: facebook.com/boernerfriends | Twitter: @FBBG
Year founded: 1984 Mission statement: The mission of the Friends of Boerner Botanical Gardens is to provide a garden setting for learning that nurtures understanding, enjoyment and stewardship of our natural world, while nourishing and preserving the historic gardens for future generations. Primary focus: The centerpiece of our organization is outcomes-based, multi-session, interactive children’s plant science and environmental education. We produce and implement a broad range of innature programming for grades K-12. Our 2017 programs served more than 15,600 students, predominantly from public schools. Were it not for FBBG’s funded programs, many students would not have these vital learning experiences in our natural environment. Other focus: FBBG plans, funds and facilitates broad year-round educational and recreational programming for all ages; naturebased classes, workshops, events, special needs initiatives and garden enhancing projects. In 2018, FBBG funded and facilitated a nighttime lighting project for Boerner, broadening our ability to draw attendance for fun evening events in nature, year-round. FBBG also coordinates in-garden volunteers for
Boerner who assist the garden staff in sustaining and preserving this historical venue. Employees at this location: Six Key donors: Foundations, private philanthropy, corporations, local businesses. Executive leadership: Ellen Hayward, president and CEO Board of directors: Denasha Scott (chair); John Zaganczyk, Patricia Laughlin, Ellie Boerner, Jay Czarapata, Robert Hanley, Margarete Harvey, Ronald Jacquart, Sally Kubly, Beth Perrigo, Karen Plunkett, Charles Revie and Michele Young. Is your organization actively seeking board members for the upcoming term? Yes. What board roles are you looking to fill? General board. Ways the business community can help your nonprofit: Corporate event sponsorships; donations to our Annual Appeal; donations in support of our student initiatives. Corporate participation in volunteer days at Boerner. Key fundraising events: FBBG’s annual fundraiser on June 14, 2019, at the Boerner Botanical Gardens. Proceeds support Boerner’s programs in children’s plant science and environmental education. biztimes.com / 41
BizConnections PERSONNEL FILE ADVERTISING
BANKING & FINANCE
Image Makers Advertising, Brookfield
Next Generation Wealth Management, Milwaukee
Pius XI Catholic High School, Milwaukee
LIFE Corp., Milwaukee
Image Makers Advertising has hired Rochelle Groskreutz as senior copywriter. Groskreutz has more than 20 years of experience in corporate communications, public relations, advertising and marketing. Her expertise spans both consumer and business-to-business audiences, and she is also an accomplished children’s author.
ARTS, ENTERTAINMENT & SPORTS
The United Performing Arts Fund, Milwaukee UPAF has named Christine Hojnacki vice president of workplace and company giving. She will lead the development team and is responsible for creating and driving strategic fundraising plans to support workplace giving campaigns, company and planned giving, as well as sponsorships.
BANKING & FINANCE
Ixonia Bank, Ixonia Ixonia Bank has promoted Jan Britt to senior vice president of retail banking. She joined Ixonia Bank in June 2015 as the manager of the bank’s Oconomowoc office. In January 2016, she was promoted to regional manager, focusing more on business and staff development, and then again promoted in January 2017 to vice president. Prior to joining Ixonia Bank, Britt spent more than 20 years at another financial institution where her role culminated as a senior vice president, retail market manager.
42 / BizTimes Milwaukee OCTOBER 15, 2018
Next Generation Wealth Management, Milwaukee, has hired Jeffrey Robbins as vice president, wealth advisor, and Eileen Karvala as vice president, client relations. Robbins has 20 years of experience in the investment advisory industry, where he has specialized in helping families address their retirement savings and income goals, investment research, and trading and compliance. Karvala has more than 15 years of experience working in the fields of marketing and insurance, where personalized service and trust-centered client relationships are paramount.
BANKING & FINANCE
Wisconsin Mortgage Corp., Brookfield Wisconsin Mortgage Corp. has hired Patrick Gosa as vice president and general manager. Gosa has been in the mortgage industry for more than 34 years. He started his career in 1984 at Thorp Finance/ ITT Financial. In 1998, he joined Wisconsin Mortgage Corp. as a loan officer for several years. He left Wisconsin Mortgage in 2001 to pursue management opportunities in banking. Gosa worked at Guaranty Mortgage as a loan officer and sales manager for 17 years, and at First Bank Financial Center as the retail lending sales manager for eight years.
Pius XI Catholic High School has named John Herbert president. Herbert was chosen by a search committee comprised of parents, alumni, business leaders and staff. He founded Legatum Capitis LLC, an organization which invests in high-potential, early-stage companies in the areas of health care technology, e-commerce and financial technology. Previously, Herbert served in several senior executive roles at Time Warner Cable, including as president, Wisconsin operations; president, network operations and engineering, Midwest region; and regional vice president of operations, Midwest market.
Ring & DuChateau LLP, Brookfield Ring & DuChateau LLP has promoted Mike McGann to vice president. He first joined the company in 2008.
Data Narro, Milwaukee Data Narro, Milwaukee, has hired Erik Thompson as director of forensic services. He has 19 years of digital forensics and computer security experience. Thompson has managed more than 750 forensics investigations and testified in dozens of court cases as an expert witness. In his new role, Erik will oversee all digital forensics and e-discovery services for Data Narro’s business, law firm and government clients.
LIFE Corp. has promoted Samantha Cowman to business director of finance, marketing and distribution.
SPORTS & ENTERTAINMENT
The Milwaukee Bucks, Milwaukee
The Milwaukee Bucks have hired Michael Belot as senior vice president of bucks ventures and development; Jill George Barry as director of guest experience; Ken Barski as senior broadcast engineer; Matt Rolf as senior network engineer; and Katie George as sideline and digital reporter.
SBA LOANS: AUGUST The U.S. Small Business Administration approved the following loan guarantees in August: JEFFERSON COUNTY
JSK Ventures Inc., 134 E. Lake St., Lake Mills, $100,000, Celtic Bank Corp.; Station Ixonia LLC, W1170 American St., Ixonia, $244,000, WBD Inc.; Curran Property Management LLC, 3300 60th St., Kenosha, $191,000, First American Bank; Mueller’s Tire and Auto Center LLC, 3300 60th St., Kenosha, $40,000, First American Bank;
$1.1 million, WBD Inc.;
Community State Bank;
Top Shelf Services LLC, 11333 W. Becher St., Milwaukee, $20,000, U.S. Bank;
Ingersoll Lighting Co., 820 W. Walworth St., Elkhorn, $25,000, Community State Bank;
Wilder Inc., 5227 W. Hampton Ave., Milwaukee, $75,000, Newtek Small Business Finance Inc.;
Aqua Therapups LLC, 246 Info Highway Court, Slinger, $151,900, Ixonia Bank;
Impressions Salon LLC, 11926 N. Bridgewater Drive, Mequon, $555,000, Bank of the West; M Shiraz LLC, 668 N. Progress Drive, Saukville, $100,000, Investors Community Bank; M Shiraz LLC, 668 N. Progress Drive, Saukville, $350,000, Investors Community Bank;
Trottier Chiropractic Inc., 5908 39th Ave., Kenosha, $50,000, Community State Bank;
Muscle & Movement Therapy LLC, 5289 W. Colombia Road, Cedarburg, $25,000, Partnership Bank;
The Fermentorium Beverage Co., 7481 Hwy 60, Cedarburg, $455,000, Byline Bank;
B Bailey Properties LLC, 5530-5552 S. 13th St., Milwaukee, $420,000, Investors Community Bank; Braun Real Estate Investments LLC, 7000-7100 W. Calumet Road, Milwaukee $3.4 million, WBD Inc.;
Troy Betthauser, 1045 W. Glen Oaks Lane, Ste. 3, Mequon, $575,000, Byline Bank; RACINE COUNTY
Clean Homes Inc., 5343 W. Dakota St., Milwaukee, $27,000, U.S. Bank;
JR Transport, 24209 Burmeister Road, Union Grove, $65,000, Citizens Bank;
Forester Tree and Plant Health Care, 8045 N. Green Bay Road, Milwaukee, $85,000, U.S. Bank;
Labrador Holdings LLC, 1335 York St., Union Grove, $248,000, Racine County Business Development Corp.;
Glander Family Chiropractic, 10920 W. Forest Home Ave., Hales Corners, $88,000, Wisconsin Women’s Business Initiative Corp.;
McReynolds Investments LLC, 600 E. Main St., Waterford, $240,000, Community State Bank;
SWC Properties LLC, 8436 W. Lisbon Ave., Milwaukee, $214,000, Milwaukee Economic Development Corp.; Three J USA LLC, 12000 W. Park Place, Milwaukee,
Rivco Industries LLC, 440 S. Pine St., Burlington, $1.1 million, Wisconsin Bank & Trust; Ingersoll Lighting Co., 820 W. Walworth St., Elkhorn, $150,000,
Clearshot Manufacturing LLC, W185 N11521 Whitney Drive, Germantown, $125,000, First Bank Financial Centre; Heart and Soul Pet Clinic LLC, 1020 E. Washington St., West Bend, $698,000, Readycap Lending LLC; Kar LLC, 6386 E. Scenic Drive, West Bend, $85,000, United Midwest Savings Bank; Vault Safe Self Storage LLC, 7520 Highway 60, Hartford, $1.7 million, First Bank Financial Centre; Waukesha Sprinkler LLC, 639 First St., Hartford, First Bank Financial Centre; Wittenberger Bus Service Inc., 511 Wacker Drive, Hartford, $600,000, First Bank Financial Centre; WAUKESHA COUNTY
W195 S6842 Racine Ave., Muskego, $657,000, WBD Inc.; MAK Ventures LLC, S75 W17461 Janesville Road, Muskego, $125,000, Wisconsin Women’s Business Initiative Corp.;
Versevo Inc., 1055 Cottonwood Ave., Ste. 400, Hartland, $630,000, Waukesha State Bank; We Can Achieve Corp., 235 Oakton Ave., #B, Pewaukee, $300,000, Stearns Bank.
(REQUESTOR PUBLICATIONS ONLY) 1.
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PUBLICATION TITLE: BIZTIMES MILWAUKEE
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Average no. copies each issue during preceding 12 months
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a. Total no. copies (net press run) ............................................................................14,879
b. Legitimate paid and/or requested distribution (by mail and outside the mail) 1. Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541. ........................................................................................ 11,124 2. Not Applicable ................................................................................................................... — 3. Sales through Dealers & Carriers, Street Vendors, Counter Sales, and Other Paid or Requested distribution Outside USPS ............................................. 25 4. Not Applicable ................................................................................................................... — c. Total Paid and/or Requested Circulation............................................................................. 11,149 d. Nonrequested distribution (by mail and outside the mail) 1. Outside County Nonrequested Copies stated on PS form 3541. ............................. 2,877 2. Not applicable ................................................................................................................... — 3. Not applicable ................................................................................................................... — 4. Nonrequested Copies Distributed Outside the Mail ..................................................... 443 e. Total Nonrequested Distribution ............................................................................................. 3,320 f. Total distribution .................................................................................................................. 14,469 g. Copies not distributed ............................................................................................................... 325 h. Total ..................................................................................................................................... 14,794 i. Percent paid and/or requested circulation ................................................................................ 77.1 %
Bertrand’s Lago Su Bella, 128 W. Wisconsin Ave, Unit 10, Oconomowoc, $175,000, First Bank Financial Centre;
KR Starz Facilities LLC,
Stadler Chiropractic LLC, 711 Main St., Delafield, $108,700, Ixonia Bank;
STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION
B&B Investments of Mukwonago II LLC, 130 Chapman Farm Boulevard, Mukwonago, $861,000, WBD Inc.;
KDR Fitness LLC, N64 W24350 Main St., Sussex, $530,000, First Business Bank;
Patel Logistics Inc., N96 W14849 County Line Road, Menomonee Falls, $495,000, Stearns Bank; Pink Flamingo Real Estate LLC, 718 Armour Road, Oconomowoc, $331,000, First Bank Financial Centre;
OFP Properties LLC, 132 S. Concord St., Oconomowoc, $1.2 million, Racine County
3 Strands United LLC, S189 W7759 S. Racine Ave., Muskego, $665,000, Wells Fargo Bank;
JDD Investments LLC, 111 W. Second St., Oconomowoc, $223,800, First Bank Financial Centre;
Business Development Corp.,
10,175 — 26 — 10,201 2,227 — — 500 2,727 12,928 280 13,208 78.9 %
PUBLICATION OF STATEMENT OF OWNERSHIP FOR A REQUESTER PUBLICATION IS REQUIRED AND WILL BE PRINTED IN THE OCTOBER 15, 2018 ISSUE OF THIS PUBLICATION.
I CERTIFY THAT ALL INFORMATION FURNISHED ON THIS FORM IS TRUE AND COMPLETE. I UNDERSTAND THAT ANYONE WHO FURNISHES FALSE OR MISLEADING INFORMATION ON THIS FORM OR WHO OMITS MATERIAL OR INFORMATION REQUESTED ON THE FORM MAY BE SUBJECT TO CRIMINAL SANCTIONS (INCLUDING FINES AND IMPRISONMENT) AND/OR CIVIL SANCTIONS (INCLUDING CIVIL PENALTIES).
Dan Meyer, Publisher, September 28, 2018 biztimes.com / 43
BizConnections VOLUME 24, NUMBER 14 | OCT 15, 2018
GLANCE AT YESTERYEAR
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— This photo is from the Wisconsin Historical Society’s Harnischfeger Corp. collection.
Brewers should develop land along Miller Park Way THE GREEN BAY PACKERS recently announced the second phase of their Titletown District development. It will include an office building, an apartment building and townhomes. Titletown District, located west of Lambeau Field, already includes Lodge Kohler hotel, Hinterland Brewery, a community football field, a playground and a snow tubing hill. A tech hub is under construction. The Packers are one of several major pro sports teams doing mixed-use development around their stadiums or arenas to enhance the game day experience and generate more revenue. The Milwaukee Bucks are working on a development district around Fiserv Forum, including an entertainment block across the street from the arena that includes Good City Brewing and Punch Bowl Social (a bar/restaurant with games). The New England Patriots developed the Patriots Place open-air shopping center around Gillette Stadium. The Chicago Cubs’ upgrades of 44 / BizTimes Milwaukee OCTOBER 15, 2018
Wrigley Field include new buildings outside the ballpark with office space, retail and a hotel. The new Atlanta Braves stadium, SunTrust Park, was built to anchor a mixed-use development district called The Battery Atlanta. Major League Baseball commissioner Rob Manfred said SunTrust Park and The Battery will be the “model for future ballparks.” “The scope of the mixed-use development surrounding the ballpark and the economic opportunity it has created for the club is what people see as revolutionary,” he said. The Milwaukee Brewers have an opportunity to do something similar. As I write this, they are preparing for the playoffs. But they should also be considering economic development opportunities near Miller Park. The news that Komatsu Mining Corp. will consolidate its local operations at a new corporate headquarters in Milwaukee’s Harbor District is great for the city. But West Milwaukee will lose a major employer and see the company abandon its 44-acre complex at 4400 W. National Ave., near Miller Park. Village officials hope to see someone eventually come forward with plans to redevelop the Komatsu site. Who should it be? The Milwaukee Brewers, that’s who. The site is closer to Miller
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Early P&H machine shop This photo, taken circa 1886, shows one of the first Pawling & Harnischfeger machine shops. The building, located at the corner of South First and East Oregon streets in Milwaukee, was constructed in 1886. The former P&H facility is not far from the Solvay Coke site where P&H successor Komatsu Mining Corp. recently announced plans to build a $285 million headquarters.
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Park than the Molitor parking lot north of I-94. In addition to the Komatsu site, the Brewers could put development on some of their own parking lots. The logical strategy would be to extend South 44th Court through the Miller parking lot between Miller Park Way and the Menomonee River. The Brewers should develop all of that land between the freeway and the river. That would still leave massive amounts of parking, and room for tailgating, in the remaining lots around the ballpark. New development could include parking structures to accommodate some game parking. Imagine a mixed-use development district along the east side of Miller Park Way between West National Avenue and I-94, visible from inside the ballpark, with bars, restaurants, retail, hotel, residences, office space and baseball-related entertainment (such as a batting cage). It would be a cool addition to the area and the Brewer game experience. n
ANDREW WEILAND EDITOR
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AROUND TOWN Future 50 Luncheon Milwaukee Metropolitan Association of Commerce and its Council of Small Business Executives (COSBE) on Sept. 21 held the 31st annual Future 50 Awards Luncheon at the Pfister Hotel in downtown Milwaukee.
JOAN and HENRY HURT, both of Hurt Electric Inc., and AARON RUPLINGER of Insperity.
MARK, STEVEN and LORI ANDERSEN, all of All Occasions Catering/Bubbs BBQ.
PAT CATES and DANIELLE LAVIGNE, both of Stamm Technologies.
NICOLE MENNICKE and TYLER DOLPH, both of Rocket Clicks, and MATT BOYCE of Everything2go.com LLC.
DAVID BOWLES and JACQUELINE MOORE, both of Creative Marketing Resources.
JEFF PETERSON and DAVE POLZIN, both of Geneva Supply, and JILLIAN CULVER of Park Bank.
BOB KLOVAS of Breckenridge Landscape, SCOTT KAUFFMAN of Business Development Pros LLC, and KAT SCHWIND and JO MACK, both of Breckenridge Landscape.
BERNARD GOMEZ of Crescendo Collective, MIKE FOLEY and JIM GOETZ, both of North Shore Bank, and TOM DUFFEY of Crescendo Collective.
Photos by Maredithe Meyer
TEMPO Emerging Women Leaders Professional Development Day 9.
BRITT BLACKWELDER of Capri Senior Communities.
10. KATIE RASOUL of Team Awesome and ALLISON PFEIFER of Eppstein Uhen Architects. 11. ANNE PALZEWICZ of Aurora Health Care. 12. SOPHIA BARNES of Aurora Health Care and HEIDI HAPPEL of Potawatomi Hotel & Casino.
13. KIM CAFCULES of Feeding America Eastern Wisconsin. 14. GABRIELA BARBOSA of Mount Mary University. 15. CHELSEA ROESSLER of The Corners of Brookfield. 16. KELSEY RICE of Make-A-Wish Wisconsin and GINA JOHNSON of Pentair.
17. JENNIFER MORTON of Mueller Communications and KILEY PETERS of Brainchild Studios. Photos by CJ Foeckler of GMR Marketing biztimes.com / 45
K E I T H S TA N L E Y |
LILA ARYAN PHOTOGRAPHY
E XECUTIVE DIREC TOR
Consider nonprofit board work Keith Stanley, 41, is the driving force behind the many efforts to revitalize the seven neighborhoods on the near west side of Milwaukee. Stanley says young professionals who want to make a difference in their community and advance their career should consider joining a nonprofit board. “When it comes to young professionals, I am always bothered when I hear people say they are unable to get ahead in Milwaukee. They need to think outside of the box and join a not-for-profit board. It is a great way to connect with people, connect with the community and connect with the movers and shakers in town. It also gives people insight on how a nonprofit is run and how decisions are made. “You have to first look at where your passions lie. If you want to help men who were released from the prison system get back into society, look and see if there are any nonprof46 / BizTimes Milwaukee OCTOBER 15, 2018
its doing that type of work. If you want to work with Washington Park, Sherman Park or the Near West Side, see if there is a board that centers on that passion. “Next, look at your ability. You might be a CPA working 9 to 5, or a social media guru. Once you figure out your passion and what you can bring to the table, then you can determine what makes sense for you. Have conversations with a few executive directors; work with the people, places or communities that can give you some insight. I can’t imagine one executive director who isn’t willing to talk with a person who is in-
Near West Side Partners/ Near West Side BID #10 624 N. 24th St., Milwaukee Industry: Economic development and nonprofit Employees: Six nearwestsidemke.org terested in giving back. “We have younger professionals involved on every aspect of the Avenues West and Near West Side boards. If you really want to break through in your career, then expand your network, contribute to your community and join a nonprofit board.” n
Friday, November 16, 2018 | 7:30 - 9:30 AM | Italian Community Center
A NEW PURPOSE
ADAPTIVE REUSE: JUST LEFTOVERS, OR A NEW MAIN COURSE? Economic and technological shifts are impacting the demand for commercial real estate and some building owners have had to adapt by seeking new uses for vacant spaces. At the annual BizTimes Media Commercial Real Estate and Development Conference real estate industry experts will discuss how the changing economic landscape, driven largely by Amazon, the changing workforce and other new tech innovations, is forcing building owners to adjust. Attendees will learn how these national trends are impacting southeastern Wisconsin.
• Daniel F. Ertl, A.I.C.P., Director of Community Development, City of Brookfield (1) • Douglas Fisher, Ph. D, Director of the Center for Supply Chain Management, Associate Professor of Practice - Management, Marquette University (2) • Scott Goldman, Principal, Baum Revision, LLC (3) • Eric Griffith, VP - Mall Leasing, CBL Properties (4) • J. Michael Mooney, Principal, Chairman & Co-Founder, MLG Capital (5)
• Mark Eppli, Director of the Graaskamp Center for Real Estate, Wisconsin Business School, University of Wisconsin - Madison UW Madison (6)
Register now: biztimes.com/creconference Sponsors:
COUSTECH S U P P LY
COUSTECH Exhibit Sponsors: S U P P LY
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Wisconsin's health care squeeze: Employers in stat hit by higher wages | Milwaukee leaders detail how they overcame challenges | Partnership...
Published on Oct 12, 2018
Wisconsin's health care squeeze: Employers in stat hit by higher wages | Milwaukee leaders detail how they overcame challenges | Partnership...