CRAINSGRANDRAPIDS.COM I JANUARY 8, 2024
Stakeholders see ‘major plus’ in rezoning riverfront Developers, planners would like to see the plan fast-tracked By Rachel Watson
Construction continues on Corewell Health Place, the health system’s new Grand Rapids office headquarters. | KATE CARLSON
Commercial projects popping up in 2024 These five developments will change the region | By Kate Carlson Industry insiders expect 2024 to bring a slight slowdown for new construction projects, but many large-scale developments are already underway or will soon break ground across West Michigan. That includes a concentration of skyline-changing redevelop-
ment projects in various planning stages in and around downtown Grand Rapids — including two from Corewell Health — and along the lakeshore in Muskegon. Below is a far-from-comprehensive list of noteworthy projects in the region.
Corewell Health Place Location: Grand Rapids’ Monroe North neighborhood Architect: Seattle-based NBBJ, various other partners Construction manager: Rockford See COMMERCIAL on Page 15
Longtime west side Grand Rapids property owners say the city’s plan to rezone about 30 acres on the west bank of the Grand River is a “great move” that will cause them to look “long and hard” at future investments in the corridor. As well, local participants in the city’s long-term planning efforts say the move will fast-track redevelopment options that have long been desired for the west side of the river. The city’s latest master plan update, as well as previous long-term planning efforts like River for All and GR Forward, all have focused on the highest and best uses for the city’s valuable yet underused riverfront real estate. “(GR Forward) was looking at over 20 opportunity sites along the river, and this was one of the sites that was in the crosshairs in the GR Forward plan,” said Eddie Tadlock, a steering committee member for the master plan process and a board member of Downtown Grand Rapids Inc. “So I’m actually glad to see that move forward in a positive direction.”
Looking southwest from the Leonard Street bridge, city planners want to rezone about 30 acres to support future development. | RACHEL WATSON
The Grand Rapids City Planning Commission voted Dec. 14 to recommend rezoning 22 parcels along Front and Scribner avenues between Leonard Street to the north and Sixth Street to the south. The move would prepare the roughly 30 acres for potential redevelopment, particularly housing. The parcels — one of which is owned by the city while the rest have various private owners — sit between US-131 to the west and the Grand River to the east. Pending city commission approval, the zoning change would increase the allowable building height for that area from up to seven stories to a maximum of 20 stories. See RIVERFRONT on Page 17
Trinity Health deploys virtual care nurses in West Michigan Program seen as bold step toward revolutionizing nursing practice By Mark Sanchez
Trinity Health Grand Rapids has started rolling out virtual care technology in West Michigan that may help to offset a chronic nursing shortage. Deployed in November on two care units at the Lacks Cancer Center in Grand Rapids, TogetherTeam Virtual Connected Care allows a nurse to virtually monitor a patient’s condition as need-
ed. They can also handle tasks such as answering questions, providing discharge instructions and expediting discharges, updating medical records and documenting care, checking on medication adherence, contacting a physician on a nurse’s behalf, clarifying doctor orders, or contacting family members with updates. Parent company Trinity Heath uses technology from virtual care provider Teladoc Health Inc. to
VOL. 41, NO. 1 l COPYRIGHT 2024 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
complement and support the work of nurses on inpatient floors with virtual nurses. Trinity Heath is deploying the technology as hospitals everywhere grapple with staffing shortages, demand for care rises with an aging population, and as outpatient trends result in higher acuity patients who are hospitalized today. See NURSES on Page 17
Trinity Health’s virtual nursing care hub. | COURTESY OF TRINITY HEALTH
FOOD & DRINK Downtown restaurant scene rebounding
HEALTH CARE Alliance awards $1.4M in latest round of grants.
REAL ESTATE Residential projects to keep an eye on in 2024.
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Interest rate declines could fuel M&A activity Expectations are highest for middle and small market deals By Mark Sanchez
Has Heart Coffee Shop is located at 22 Sheldon Ave. NE in the Heartside neighborhood, inside Veterans Memorial Park. | COURTESY PHOTO
Downtown restaurant scene rebounding Here’s what’s new and coming to Grand Rapids in 2024 | By Abby Poirier While the restaurant scene in downtown Grand Rapids has experienced some churn in the years following the pandemic, local officials point to numerous positive signals as reason for reassurance. Chief among them is a growing body of in-person office workers in the downtown area in recent months, as well as myriad housing and urban development projects that continue to rise across the city. Bill Kirk, director of communications at Downtown Grand Rapids Inc. (DGRI), said the downtown area remains “in good shape” as development booms. According to November data collected by DRGI, 14 new downtown businesses have opened in 2023, half of which were restaurants. At the same time, 16 downtown storefronts closed their doors, 44% of which were restaurants. However, residential activity downtown has increased, with a
the right direction,” Kirk said. While some restaurant businesses struggled to emerge from the pandemic, other projects — both new and years in the making — have stepped in to take their place. Here’s a look at several prominent downtown restaurants that are coming online in the next year, projects that recently opened and places that have closed their doors for good. Rendering of the interior of Rev: Road to Revitalize Luxury Juice Bar, which expects to open at the Ledyard Building at 125 Ottawa Ave. NW. | JS DESIGN GROUP LLC
25% rise in activity in November 2023 compared to a year ago, and a 31% increase in November 2023 compared to the five-year average for the month. “We’re certainly not fully recovered, but from an activity and occupancy standpoint, I would say we’re in really good shape and headed in
Executive outlooks point to an improved mergers and acquisitions market in 2024, especially if interest rates begin to decline as many experts expect and the U.S. economy avoids a downturn. The expected increase in M&A activity in 2024 would follow a down year in 2023 that’s partly attributed to a rising interest rate environment and economic uncertainty. Rajesh Kothari, managing director at Cascade Partners LLC, a Southfield investment bank that has an office in Grand Rapids, expects an improved market “as long as we don’t enter recession.” If so, “we’ll be back to a very strong, robust market next year,” Kothari said. “Folks can only sit on the side for so long and the rates are stabilizing,” he said. “The greater stability we have, the greater the M&A market is going to be.”
The higher interest rates and a tighter lending environment that slowed M&A in 2023 will continue to drive deals downstream in 2024 and toward the middle and smaller ends of the market. That’s one of the main expectations for the next year, based on results of an annual M&A outlook survey issued by law firm Dykema Gossett PLLC. More survey respondents expect M&A activity to increase at the middle and lower markets than for mega deals valued at $1 billion or more.
Race to the middle Because of the higher costs to finance deals given the elevated interest rates, buyers such as private equity firms have been pulling back on mega deals. The migration downstream that began in 2023 will likely carry into 2024, said Joe DeHondt, co-chair of Dykema’s M&A practice group who works at the firm’s Bloomfield Hills office. “For mid (sized) and small businesses, the M&A market is going to be solid in 2024,” DeHondt said. See M&A on Page 16
Coming soon REV: Road to Revitalize Luxury Juice Bar, 125 Ottawa Ave. NW, Suite 120 Nutritionist Shardaira Jones is bringing her juice brand, Rev: Road to Revitalize, to downtown Grand Rapids with plans for her first storefront selling coldpressed juice drinks and cleanses. See RESTAURANTS on Page 16
Health care, which includes digital health technologies, ranks third among sectors most likely to experience M&A activity in 2024, according to a survey. | UNSPLASH
Grand Rapids Community Foundation tabs Gaddy as next CEO By Rachel Watson
The Grand Rapids Community Foundation has chosen a veteran nonprofit executive to succeed its outgoing leader of the last 35 years. The 101-year-old community foundation’s board of trustees said in a statement Dec. 19 it selected LaSandra “Sandra” Gaddy to succeed Diana Sieger effective Feb. 5. Sieger, who has led the foundation since 1987, will retire in early February but will remain available to help with the transition as needed, she told Crain’s Grand Rapids Business. “I’ve worked with her on a couple of projects, and she is a dynamic leader,” Sieger said, adding
Michigan Foundations, she’s known Gaddy for said in a statement. “Her many years. “I am so exthoughtful, courageous cited by the choice. … I’m and effective reputation really happy. I just think and results ensures that the world of her.” the decades of transforGaddy has more than mative, equity-centered 25 years of nonprofit and engaging leadership leadership experience. For the past seven years, LaSandra “Sandra” of the community foundation will continue and she has served as CEO of Gaddy grow.” the Women’s Resource During her tenure at the WomCenter, a Grand Rapids-based organization that focuses on improv- en’s Resource Center, Gaddy deing economic mobility for women. veloped and led the organization “Grand Rapids Community through a four-year restructuring Foundation is fortunate to have process, increased the number of LaSandra serve as our next presi- women of color served by more dent and CEO,” Kyle Caldwell, the than 30% and expanded programfoundation’s board chair who also ming into Muskegon and Ottawa is president and CEO of Council of counties, according to the state-
ment. Before her current role, she served as vice president of advancement for the former Inner City Christian Federation, an affordable housing provider based in Grand Rapids that’s now called ICCF Community Homes. She also formerly was chief communication and development officer for Mel Trotter Ministries. Prior to her work in nonprofits, Gaddy spent 15 years in banking, including serving as a vice president in retail, business banking and wealth management, most recently at PNC Bank. Gaddy did not immediately respond to a request for comment but said in a statement that lead-
ing the Women’s Resource Center “has been an absolute honor.” “The work of securing a brighter economic future for women and their families will continue to reach new heights through the dedicated staff of professionals, board of directors, volunteers and generous donors (at the Women’s Resource Center),” she said. “I look forward to joining the team at Grand Rapids Community Foundation and building upon its legacy as a trusted steward of philanthropy across West Michigan.” Chicago-based executive search firm Kittleman & Associates led the search in partnership with the foundation’s search committee and board of trustees.
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Alliance awards $1.4M in latest round of grants MSU, Corewell Health fund five joint projects in West Michigan By Mark Sanchez
The $1.4 million that Corewell Health and Michigan State University’s College of Human Medicine recently awarded researchers follows the steady buildup over the years in medical research in Grand Rapids. The money for the five new joint research projects comes from financial commitments that each organization made 16 years ago to a partnership they formed to support joint medical research in West Michigan. Using that funding, and as the amount of research conducted increased over the years, the two organizations initiated a new competitive grant process about three years ago to back joint projects that combine the medical expertise and physician researchers at Corewell Health and the College of Human Medicine’s scientists to lead projects together. The funding awarded this fall under the partnership “must foster that innovation and creativity at the end of the day to make a patient impact here in Grand Rapids,” said Paula Schuiteman-Bishop, vice president of medical education and research at Corewell Health. One research project will examine bacterium that can infect immunocompromised patients and
Researchers at Michigan State University College of Human Medicine at the Grand Rapids Research Campus. | COURTESY PHOTO
lead to lung transplant failure, with a goal to develop new therapies. Another will study whether using portable air filtration systems improves cardiovascular risk factors in patients. Other joint research projects that Corewell Health and the College of Human Medicine funded will: Create new radiopharmaceuticals and examine their efficacy to treat lymphomas. Test a nanoplatform to measure the burden of a disease, deliver cellular therapy for plaque and study the response to therapy. Use molecular profiles of patients with severe traumatic brain injury and establish a platform for gene delivery. Corewell Health and MSU
formed the partnership as the College of Human Medicine first expanded into Grand Rapids. At the time, the move promised to connect MSU with the emerging health care and research cluster, elevate the medical school and increase research funding. The two organizations each committed to allocating $2 million annually for new and ongoing joint research projects. Since 2007, MSU’s College of Human Medicine and Corewell Health (then known as Spectrum Health) together have invested $25 million into research projects through their joint venture, known as Alliance Corp. “This is an investment into our community, and it’s really through collaborations like this that are suc-
cessful that I think we can lead the way for the state,” Schuiteman-Bishop said. “Our partnership is all about collaboration and what we can do together to bring hope to our patients in our West Michigan community.” The latest competitive grants are part of a much broader portfolio of research projects by both Corewell Health and the College of Human Medicine. The research projects funded through the Alliance generally focus on early discoveries. Among the goals is to generate data that researchers can use to attract larger grant funding to support deeper research from sources such as the National Institutes of Health, said Aron Sousa, dean of the MSU College of Human Medicine. The collaboration works to support research projects that “are promising but are not developed enough to get funding in other ways,” Sousa said. The ultimate goal for the research is to create intellectual property and innovations to commercialize, he said. “We want the projects to be useful. The first thing is that they move the discipline and science forward. Some of these will turn into larger, big-funded NIH grants that demonstrate that something is useful in the world and maybe change patient care or change the field. Some of them might well turn into intellectual property and those might turn into companies,” Sousa said. “A little bit of everything comes out of these kinds of projects.”
The Alliance that Corewell Health and the College of Human Medicine formed in 2007 has helped MSU recruit researchers to Grand Rapids to work within the health care and research cluster that’s built up along the Medical Mile over the last two decades. The MSU research campus on Michigan Street in downtown today generates $300 million a year in economic activity, Sousa said. The two organizations also have jointly funded scientist and faculty salaries, startups, and other ongoing research costs through the Alliance, which has “absolutely been essential to the college’s growth and the scientific growth on the Medical Mile,” Sousa said. The competitive grants for medical research are “just another way for the partnership between Corewell and MSU to bring this innovation and scientific economy and collaboration to the Medical Mile,” he said. “Our job is to spend that money to enhance scientific research and programming in West Michigan,” Sousa said. Expanding into Grand Rapids and forming research partnerships has contributed to MSU significantly growing its NIH funding. The College of Human Medicine has grown its NIH funding 50% over the last four to five years, Sousa said. MSU overall in 2023 has received 217 NIH awards totaling $91.5 million, and was awarded $104.4 million in 2022 for 244 projects, according to an NIH database. That compares to the 147 awards in 2013 for $49 million.
Auto industry analysts optimistic on tool and die Change to emphasis on electric vehicles could be boon for industry By Kayleigh Van Wyk
Setting aside all the turbulence from the UAW strike and ongoing macroeconomic factors, automotive analysts say there’s reason to remain optimistic for one sector of the industry that’s heavily concentrated in West Michigan. Southfield-based industry consulting firm Harbour Results Inc. noted in its most recent survey that tooling slowed in the third quarter of 2023 as quote activity declined and backlogs stood at more than three months. However, President and CEO Laurie Harbour sees new tooling opportunities on the horizon and particularly strong demand because of the shift to EVs, specifically the multitude of new EV models that automakers expect to introduce in the next three to five years. “From the perspective of tooling itself … I can’t build the car without a tool for all the parts that it has, so I have to launch new tools for those while I’m also launching all of these ICE products that all the OEMs have,” Harbour told Crain’s Grand Rapids Business in a recent interview. “So, in a sense, it’s very good for the tool industry.” The outlook comes amid a frothy
time for the automotive industry, although the sector appears to be returning to some sense of normalcy after UAW members ratified their contracts following a prolonged strike against the Detroit 3. With the high-profile contract dispute behind it, the automotive industry will finally gain some clarity about the future, which should reverberate through sectors like tool and die, said Mike Wall, executive director of automotive analysis at S&P Global Mobility in Grand Rapids. “Once we do get the union negotiations in the rearview mirror, it’s going to be all eyes forward on all of these vehicle launches and, in particular, this EV migration,” he said. Tool and die makers have dealt with supply chain disruptions, inflation and labor shortages like the rest of the manufacturing industry, and they face unique challenges such as price pressures that frequently have them competing with producers in China. But the dozens of new EV launches in the coming years could provide a massive lift for the firms that are positioning to capitalize on the market, Harbour said. Harbour noted that some vehicle components currently stay the
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same between internal combustion engine (ICE) and EV models, contributing to the overall availability of work for tool and die makers and her firm’s favorable outlook. Additionally, Harbour believes the broader North American tooling industry has the strength and capacity to compete with China for tooling jobs. “The shops have to fight for their own viability by improving their business. And the data shows us that they have not done everything that they can to improve their business,” Harbour said during a recent webinar. “Once they can do that, they can show data to the OEMs and their customers about why we should make tools here. “I’ve been saying for over a year now: I’m very bullish about the tool forecast for the automotive industry, and I’ll tell you I’m still very bullish,” Harbour added. The fate of the tool and die sector weighs on the manufacturing sector locally in West Michigan. According to data from the Bureau of Labor Statistics, the Grand Rapids-Wyoming metro area ranks third nationally for the number of jobs (1,800) in the tool and die sector, behind Detroit and Chicago. Local workers in tool and die make
The former Middleville Tool & Die in 2023 rebranded as Middleville Engineered Solutions following an investment from a metro Detroit private equity firm. | FILE PHOTO COURTESY OF MIDDLEVILLE ENGINEERED SOLUTIONS
an average wage of $28.51 per hour and an average annual wage of $59,290. Michigan also has the most tool and die jobs of any state and is home to the highest industry concentration nationally, per BLS data. Still, like many lower-tier automotive suppliers, tool and die companies will be wrestling with a great deal of complexity in the transition from internal combustion engine vehicles to battery electric vehicles, Wall said. That shift is leading some companies to consider their future and place within the automotive industry. “What you’re going to see with tool and die is probably similar to
what we’re going to see with just production suppliers as well. You’re going to see some companies really kind of assess the landscape,” Wall said. “After going through COVID and these three years of somewhat chaos, where do they see their position in the industry going forward?” Likewise, Harbour said the strikes and ongoing macroeconomic challenges have caused some strain for a particular subset of the tooling industry. “’I’m very concerned about what the long-term effect of the strike will be on some of these smaller, family-owned, 100-person or 50-person shops,” Harbour said.
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NPF Investment Advisors unveils new offices in Downtown Grand Rapids BY NPF INVESTMENTS
with individuals, families, businesses and endowments to grow and preserve their wealth through tailored planning, investing and coordination with other trusted service providers.
Kurt Arvidson, CFA, MBA Partner & Chief Investment Officer
N
PF Investment Advisors, one of the longest standing privately owned investment firms in Grand Rapids, is renewing its investment in the city’s downtown with a new office in the Trust Building. After nearly doubling its client count and assets under management in the last decade – and expanding its staff to accommodate the growth – NPF is marking its 90th anniversary in a new-yet-familiar place. The firm has taken over the entire fifth floor of the Trust Building, a significant upgrade from its previous third-floor space, which it shared with other professional offices.
“Almost residential in feel” The new NPF offices are designed to make both clients and team members feel more comfortable and engaged. The firm worked with local businesses and the local office of a global architecture firm to realize its vision.
Arvidson, NPF’s chief investment officer and a 23-year veteran of the firm, says the decision to remain in the Trust Building was an easy one. “We are firmly committed to downtown Grand Rapids and the new office is a substantial long-term investment in a cohesive and interactive space for both clients and team members.”
“Contemporary layouts, colors and finishes make the space more open and inviting, almost residential in feel,” says Bosgraaf, an investment advisor and portfolio manager who assumed many of the responsibilities for planning and organizing the new office. “We took everything down to the studs to completely transform the space and really set it apart from our previous office.”
The firm originally moved its offices to the Trust Building in the 1960s, occupying part of the sixth floor before relocating to the third floor. Completed in 1892, the Trust Building was the first structure in Grand Rapids built solely to house office space, and was the tallest building in the city at the time of its construction.
The new home of NPF Investment Advisors includes 16 private offices fronted by glass walls, 20 open offices with shared working space, three conference rooms, a dedicated reception area and a spacious lounge area that flows into a kitchen and breakroom. “The lounge feels like a living room, with soft seating and a big-screen TV,” says Bosgraaf. “It’s a great set-up for entertaining clients and encouraging informal collaborations between team members.”
Project At A Glance Location: Suite 500, Trust Building, Grand Rapids, MI Size: 12,000 sq. ft. General Contractor: Visser Brothers Architecture + Design: Ghafari Associates Furniture Dealer: Trellis for MillerKnoll Property Management: CDW Real Estate
The firm’s enduring success is a testament to the vision and values of its founding partners, who believed in active management, in-house research, local ownership and personalized advice – attributes which continue to distinguish it from many other investment firms across the city and region. Today, NPF is led by six partners – Kurt Arvidson, Jay Wisentaner, Chad Dutcher, Dan Lupo, Dave Hodge and Tyler Bosgraaf – who honor the legacy of the past while evolving the firm to anticipate and adapt to changing client needs. The partners and their team work
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cultural hub of West Michigan, and our location here has been an important part of our identity for decades,” says Bosgraaf. “It’s our home.”
Addressing staff feedback that the old space was too dark and either too hot or too cold, “We lightened the color palette and fully upgraded the HVAC system. We also widened the hallways and raised the ceilings for a more open and spacious feel. Everyone’s been pleased with the results.” “It’s our home” Everyone’s also pleased with the new-old address. The partners briefly considered move-in-ready suburban locations for a new office, but sentiment clearly favored staying downtown and continuing to support the city of Grand Rapids. “This is the business and
The kitchen space features a full refrigerator, two drawer-style microwaves, beverage fridge, dishwasher, TV, and ample storage for snacks.
It was and is a fitting location for a firm with an impressive pedigree of its own. Founded in 1933 by Abbott Norris, the firm began as an investment office for a prominent local family. The client list grew and Norris was joined by Ford Perné and Charlie French in the 1950s, operating under the name Norris, Perné & French. In 2020, the firm changed its name to NPF Investment Advisors and modernized its branding to reflect a new generation of leadership and expanded portfolio of services. The warmth and sophistication of the new office is a further expression of the brand. Growing with Grand Rapids Expanding office space in an era when many businesses are downsizing is also on brand for NPF. “We believe in having our team members in the office to collaborate – and always have,” says Arvidson. “Nothing beats personalized contact between clients and team members.”
The Charlie French Conference Room, nicknamed the ‘Cozy Conference Room’, features living room style furniture for more relaxed meetings.
Arvidson credits the firm’s guiding values for the decision to invest so heavily in the city it’s called home for 90+ years. “We greatly value our independence as a partner-owned entity and we look forward to growing with Grand Rapids in the decades to come.” NPF will complete its monthlong transition to the fifth floor in December, with a formal ribboncutting planned in January. A series of open houses will follow to introduce clients to the new space. Please visit npfinvest.com to explore the benefits of building and preserving your wealth through tailored planning, active investing and complete coordination across your financial life.
Entertaining lounge, adjacent to the kitchen, serves as a gathering space for colleagues and guests alike.
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Retired office furniture CEO and artist wife make their mark The $3.9M Lake Macatawa home is filled with personal touches from Don and Jodi Heeringa By Rachel Watson
The retired co-owner and CEO of Trendway Corp. and his artist/ designer wife are selling their sprawling house on Lake Macatawa as they downsize for health reasons. Don and Jodi Heeringa, now in their late 70s, are selling their 6,850-square-foot home that they custom-designed in 1991 on Lake Macatawa in Park Township for $3.9 million. The three-bed, three-and-ahalf-bath home is in the desirable Waukazoo Woods neighborhood, a forested area on the lake’s north shore established in 1833 by Ottawa leader Chief Waukazoo and currently inhabited by about 1,300 residents. Kersh Ruhl and Lauri Sisson, of Michigan Homes and Cottages/ Coldwell Banker Woodland Schmidt in Holland, listed the property in late October on behalf of the Heeringas. The list price includes all of the furnishings and a 900-square-foot guest house opposite the main house, overlooking the pool. The property is about 1.3 acres, with 200 feet of lake frontage and a 90foot permanent dock. Jodi Heeringa, a painter and interior designer who founded and owned the former Landwehr Design in Holland, did the interior design for the house. The architect was David VerBerg, a former Trendway designer. Steven Walters, of Holland-based SW Builders, assisted with construction. The couple is selling because Don Heeringa, who retired and sold his majority stake in Trendway to Fellowes Brands in 2019, was diagnosed with a progressive genetic neurological condition called ataxia, and the home no longer meets his needs. “(Ataxia) is pretty rare, but my mother had it, my older brother had it, and my grandmother had it,” Don Heeringa said. The couple is in the process of gutting and rebuilding a new place just 14 houses away on Lake Macatawa that will be more accessible and adaptable to their needs as they age. “We have loved this house,” Jodi Heeringa said. “It is hard to move, but it’s good, and it’s time. To be really honest with you, it was a dream house. I think we’re making this next one a dream house, but in a different way. … In the end, I
hope a nice family buys this, because it is a family house, and we’ve enjoyed so many years with this home.”
Remarkable couple, remarkable home The Heeringas both come from Holland manufacturing families. Don Heeringa and his father George and brother Jim teamed up in 1973 to buy Trendway, then a 5-year-old company with 13 employees that was struggling with quality and production problems. Over his 46-year tenure leading the company, he morphed it into a fixture in Holland’s industrial scene, growing it to 320-plus employees who own a combined 25% stake in the company through an employee stock ownership plan as of 2018, the year before Fellowes Brands acquired it. Jodi Heeringa is the granddaughter of August H. Landwehr, founder of the Holland Furnace Company, which operated from 1906 to 1968. Her mother was Phyllis Watkins Cox, an interior design business owner whose career took her all over the world, and her father was Edgar Landwehr, heir to Holland Furnace Co. The Heeringas are noted philanthropists, giving to various causes in West Michigan and beyond, including medical research, sports, education and economic development. He was a founding member of Lakeshore Advantage Corp., and he and his wife established the Ottawa County Cold Case Sup-
This nearly 7,000-square-foot house on Lake Macatawa in Park Township is for sale for $3.9 million. | MICHIGAN HOMES AND COTTAGES
they didn’t meet until adulthood in 1973. The pair married in 1980 and bought the property they’re now selling in 1981, when they locked in a 14% mortgage interest rate. At the time, it housed a small cottage, plus the pool and guest house that still stand today. “When we first looked at it, my wife said she didn’t like the house because it was an old-style cottage,” Don Heeringa said. “I said, ‘Yes, but look at all the land we’d have. So we decided to stick our neck out and buy it.” Ten years in, they knocked down the cottage and built their dream house, which has an openplan layout on two floors, angled toward the lake with panoramic views from nearly every room. They also completely redid the guest house. At first, the property was their second home, then eventually their primary residence where they raised their son.
The list price includes all of the furnishings and a 900-squarefoot guest house opposite the main house, overlooking the pool. port Fund through the Community Foundation of the Holland/ Zeeland Area. The latter was an effort spurred by the murder of a longtime Trendway employee and his wife, which went unsolved for 27 years until the cold case fund was used to help find and convict the killer. Later in life, Don and Jodi Heeringa found out they grew up just three blocks apart during childhood, and their families both had houses on Lake Macatawa. But
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Constant updates Because the open layout they chose was ahead of its time for the 1990s, they never needed to reconfigure it through the years, Jodi Heeringa said. However, even after Jodi Heeringa closed her firm to stay at home with their son, she continued to follow interior design
trends and kept the house stylistically current over time. They gave their Realtors a full list of the amenities they added over the years. Outdoors, these included a steel sea wall, automatic irrigation and landscape lighting, a natural gas patio fire pit and built-in stone barbecue, and a solar pool heater with a backup gas heater. The garage is Don Heeringa’s favorite feature, as it has work pits below the floor that he used for oil changes and tinkering with his beloved hobby cars. Jodi Heeringa’s happy place is her light-filled and colorful art studio, where she produces landscape paintings. They remodeled the kitchen fairly recently, with custom cherry cabinets, double ovens, an induction cooktop, a Miele built-in coffee maker, Corian countertops, a dish warmer, double dishwasher, microwave and built-in sub-zero refrigerator and freezer. In their updates, they avoided the ubiquitous trend of stark whites, grays and blacks but incorporated their love of color. “To me, life is colorful and should be,” Jodi Heeringa said. To sell the home, they toned down some of the wall colors but left others vibrant, evoking shades of sky and water to sustain a true beach feel to the place. They also replaced a spiral staircase with an elevator to make the home more accessible to those with mobility challenges. The home is equipped with effi-
cient features throughout, including Pella windows and newer heating, ventilation and cooling systems.
Playing the waiting game Ruhl and Sisson, the sellers’ agents, looked at comparable home sales in the Holland area, mostly on Lake Macatawa, to set their price. “When we set values for houses, we make sure that we do it as an appraiser would do it,” Ruhl said. “In this instance, there’s a large amount of value in the actual water frontage. … When you’re talking about Lake Macatawa waterfront, (prices vary) anywhere from $8,000 to $12,000 a linear foot.” Because it was a custom-built home, and because it has auxiliary buildings that don’t meet today’s zoning restrictions but were grandfathered in, that increases the value per square foot even more, Ruhl said. Sisson said the listing has garnered “a lot of online views” but not many physical visits. She attributes this to the small buyer pool for houses at this price range, rather than the time of year. “We know it’s going to have a little time on the market,” she said. She added that the real standout, for her, is the open floor plan and overall size for hosting groups. “It’s spectacular for entertaining family and friends,” she said. “And the architects paid special attention to incorporating really, really great views.”
Residential projects to keep an eye on in 2024 $2.65 million Michigan Community Revitalization Program loan and $367,680 in brownfield incentives Estimated completion: Early fall 2024
Several large projects are on the docket throughout the region By Rachel Watson
West Michigan residential developers felt mounting pressure to advance projects as a continued affordable housing gap and approaching deadlines to spend federal funds lent an urgency to their work. Concurrently, municipalities hurried to launch zoning reforms and master plan updates. Housing Next, a nonprofit that advocates for housing in Kent and Ottawa counties, in February published a report that found an additional 35,000 rental and for-sale units will be needed by 2027 to stabilize the local housing market. In tandem with partners like Housing North and the Housing Michigan Coalition, the group tallied policy wins in 2023 that included the expansion of brownfield tax increment financing to include housing development and the ability for municipalities to adopt payment in lieu of taxes ordinances to mitigate the cost of workforce housing construction. Housing Next also saw successful setups of revolving loan funds for housing projects in Ottawa and Kent counties using American Rescue Plan Act funds. At the same time, the group is fighting for local zoning reforms and master plan updates in Grand Rapids and its suburbs to align priorities and cut red tape for developers of housing at all price points. Amid this work, the city of Walker instituted a sixmonth pause on residential development that it says will ensure a level playing field for future growth. On top of that, the Dec. 31, 2024, deadline for recipients to commit ARPA funds — and the deadline to spend the funds by 2026 — looms over all projects as developers push for local approvals to get shovels in the dirt. Meanwhile, a Realtor.com report forecasts Grand Rapids will be the sixth-hottest housing market in the country in 2024, as it is poised to see among the strongest combined increases in home sales and listing prices. Against this backdrop, here are a few of Crain’s Grand Rapids Business’ top residential projects to watch in 2024.
The Studio Park tower Number of units: 165 rental apartments, 25 for-sale condominiums Location: Downtown Grand Rapids Architect: Integrated Architecture Construction manager: Rockford Construction Developer: Olsen Loeks Development Condo broker: Katie Bylsma with Patriot Realty Leasing and property management: KMG Prestige Cost: $62 million, supported by a Neighborhood Enterprise Zone incentive
Studio Park. | RACHEL WATSON
valued at $2.3 million over 12 years
Estimated completion: End of 2024 Anyone who regularly drives on the S-curve of US-131 will have seen 16 stories gradually rising above the Studio Park parking garage. When completed, the 212,000-square-foot residential tower at 144 Oakes St. SW will be the fifth-tallest building in downtown Grand Rapids, at 22 stories, including the six-story parking garage that was built for phase one of the mixed-use development anchored by Celebration Cinema Studio Park. Amenities on the tower’s base floor will include a gym, golf simulator, commercial laundry, pet wash, sauna, indoor/outdoor pool, deck with a grilling station and a pickleball court. Rents will range from about $1,600 to about $2,900 per month for studio, one- and two-bedroom units. The housing will be considered affordable to people making 120% to 150% of the area median income. Condo prices will start at $595,000 and go up to $1.3 million. Jeff Olsen, partner along with J.D. Loeks at Olsen Loeks Development, said the project has remained on time and on budget despite the challenges of an active construction site operating above and around existing businesses like the movie theater, Acrisure’s offices and the Canopy by Hilton Hotel. “It is similar to building a ship in a bottle,” Olsen said. “We have the complexity of having very limited space to access the perimeter of the building, and so we’ve been able to work through a really dynamic logistics plan with our construction manager and our trade partners.” He said condo sales will begin closing in the third quarter of 2024, while apartments will be delivered in Q3 and Q4.
The Current Number of units: 72 apartments Location: Grand Rapids’ Creston neighborhood Architect and construction manager: Pinnacle Construction Developer: Talbot Development LLC Leasing and property management: KMG Prestige Cost: $14.8 million, supported by a
Wilder Crossings
Crews broke ground in September on this four-story, 45,000-square-foot, energy-efficient mixed-use development at 220 Quimby St. NE, a site in the Creston neighborhood where developer Derek Coppess twice failed to complete housing projects. The project will include 72 market-rate studio, one- and two-bedroom apartments ranging from 350 to 1,065 square feet and a roughly 1,000-square-foot ground-floor coffee shop run by Quickwater Coffee Roasters. Ryan Talbot, owner of Birmingham-based Talbot Development, acquired the property for $1.52 million in November 2022 from Coppess’ development partner, Isaac Oswalt. This is Talbot’s first development in Grand Rapids. He previously told Crain’s Detroit Business that after moving home to Michigan in early 2022, he was looking to put “reasonably high-density” housing in a walkable, up-and-coming neighborhood, and Creston fit the bill. Talbot told Crain’s Grand Rapids the project is already receiving strong interest from prospective renters who’ve seen it taking shape from the street, even though pre-leasing won’t open until spring. “The project’s going really well, and there’s been a tremendous response from the neighborhood,” he said.
Number of units: TBD but the goal is several hundred single-family condos Location: Alpine Township Developer/builder: JTB Homes and Interra Homes Cost: Unknown Estimated completion: Unknown An ambitious plan to turn Gracewil Country Club into 538 units of housing is currently in flux. That’s thanks to a Nov. 7 referendum in which Alpine Township voters overturned the rezoning of the golf course from low-density residential to open space neighborhood-planned unit development. The previous plan called for a mix of 317 single-family homes, 137 single-family condos and 84 duplex condos, with 151 of the condos designated for senior housing. The development also was to include shared recreational amenities like a pickleball court, splash pad, clubhouse and playground. Because developer Dale Kraker already owns half the land and is under contract to buy the rest within the next year or so, he and his land development manager Howie Hehrer still plan to develop it into housing after taking a beat to formulate a new plan under the low-density zoning restrictions. Kraker and Hehrer did not return calls for comment, but Hehrer said in November that they are “still planning on developing it; there’s just a lot of different variables in play right now.” He said they’ll take the next few months to devise a plan.
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January 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 7
New federal ownership law ushers in ‘sea change’ Not many small businesses are aware of the legislation By Mark Sanchez
The coming year ushers in new federal requirements for millions of U.S. businesses to report their ownership and any future changes. The bipartisan Corporate Transparency Act that was scheduled to take effect Jan. 1 targets illegal activities, such as using shell companies for money laundering. The law requires legal business entities registered with a state to report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) their beneficial ownership and anybody who has “substantial control” in the company, including equity partners, executives, senior officers and directors. While the law’s goals are laudable, both small and large businesses will have the responsibility for the first time ever to consistently monitor and promptly report when any information changes about their beneficial ownership, said Seth Ashby, a partner at Varnum LLP in Grand Rapids who leads the law firm’s task force on the Corporate Transparency Act. The reporting requirements could include any change in executives or directors, or even something as minor as an equity partner who moves and changes his or her address. “It’s a sea change. For the U.S., private companies are not accustomed to disclosing their owners,” Ashby said. “For some, including family offices or businesses with owners who are sensitive to their privacy, this is going to be a big deal. For others, it might not be particularly troubling, but they may find that it is a burden in the sense of companies that are not exempt will be under a constant duty
Ashby
Sprague
to monitor their beneficial ownership information and report updates within 30 days of any change. That’s the part that I think is going to be very challenging for businesses. “It’s the constant monitoring and updating obligation that I think is going to be challenging.” Congress passed the Corporate Transparency Act in late 2020. The law imposes a civil penalty of $500 a day for companies that fail to report beneficial ownership changes, and criminal penalties for willful violations that include up to a $10,000 fine or two years in prison. The Corporate Transparency Act defines beneficial ownership as anyone who has an ownership interest of 25% or more in a business, a majority of voting ownership, or someone who exerts “substantial control” over the entity, such as executives, senior officers and board directors — even if they do not hold an ownership stake in the company. “You don’t actually have to have any equity ownership to be a ‘beneficial owner’ under this statute,” said Corinne Sprague, a partner in the Business Practice Group at Warner Norcross + Judd LLP in Grand Rapids. “If there’s a CEO of a business that doesn’t have any equity at all, that CEO is still going to be reported to FinCEN as a ‘beneficial owner’ because of their ability to make important decisions on behalf of the entity,” Sprague said. “There are a lot of different ways different people can get pulled in under the
U.S. Department of the Treasury building in Washington, D.C. | GETTY IMAGES
‘beneficial owner’ definition.” Under the law, a company created or registered to do business prior to Jan. 1, 2024, has until Dec. 31 to file an initial beneficial ownership information report with FinCEN through an online portal that has yet to launch. A company created or registered on or after Jan. 1, 2024, and before Jan. 1, 2025, has 90 days to file from the date when it receives notice from the state that its registration is effective. FinCEN in November extended that deadline from 30 days. Companies formed or registered on or after Jan. 1, 2025, will have 30 days to file an initial report to FinCEN. The federal law does have exemptions, such as for public, large operating companies, banks and credit unions, sole proprietorships, and some general partnerships. For businesses held by holding companies, each legal business entity will have to report individually, Ashby said. “The fact that they’re part of an affiliated group does not matter, and that is where I think so many private businesses are going to find themselves captured by the CTA, even though that’s not really the in-
tent of the law,” he said. All companies, no matter their size, should assess whether they meet criteria for an exemption, he said. For decades, the U.S. was one of the few countries that lacked a law requiring businesses to report beneficial ownership to flesh out shell companies that protect illegal activities such as money laundering and terrorism financing through business entities, Ashby said. Until now, anti-money laundering efforts have largely been pushed through regulations on banks and the financial services industry. “The intent behind this legislation is to get a handle on who owns and has control of various types of entities within the U.S. in an effort to crack down on money laundering and kind of shadow money that may be used for shady purposes,” Sprague said. “Other countries have been doing this, and the E.U. (European Union) has been doing this for some time. The U.S. is kind of catching up now.” The Corporate Transparency Act has been subject to a court challenge that the National Small Business Association initiated in 2022
after FinCEN issued its final rules. A federal court in Alabama heard arguments in the case on Nov. 20. The case has been fast-tracked and expectations are that the court will issue an initial ruling soon on the NSBA lawsuit challenging the law’s constitutionality, “although how the court will rule is anyone’s guess,” Ashby said. “We are moving forward and preparing as if the rule will go into effect, but we’re anxiously awaiting that initial decision.” Business advocates across the nation also have been pushing to delay rules implementing the law from taking effect for a year. An Oct. 30 letter from American Institute of Certified Public Accountants to FinCEN that was signed by dozens of business trade organizations argued that many of the estimated 32.6 million affected small businesses remain unaware of the law. The American Institute of Certified Public Accountants cited a National Federation of Independent Business survey that found nine out of 10 members were unfamiliar with the law. The lack of awareness of the law “is pretty high,” Sprague said. “It has not been super well publicized in the U.S., and as a result, it’s kind of coming as a surprise,” she said. “It is something that is going to need to be top of mind, and I don’t think it is right now. It’s just another compliance issue going forward that we’re going to have to think about.” The law requires FinCEN to maintain a database of companies reporting their beneficial ownership. In its recent letter, the American Institute of Certified Public Accountants urged FinCEN to delay implementation for a year to “give all businesses a fair time frame to gain awareness and a reasonable time frame to comply with the (beneficial ownership information) requirements.”
Developer to backfill vacant Alpine Township industrial site Honeycrisp Ventures plans to add more square footage, two tenants By Kate Carlson
Honeycrisp Ventures LLC is aiming to more than double the square footage at an industrial property the developer recently purchased in Alpine Township. The Ada-based developer closed on a vacant, 126,000-square-foot industrial building on Nov. 28 located at 1020 Seven Mile Road NW in Alpine Township. The building previously housed automotive supplier NBHX Trim Group, which vacated the location in 2023, laid off 74 employees and moved its manufacturing operations to Mexico. Honeycrisp Ventures is working with OTC Industrial Technologies and another tenant to lease and backfill the existing 126,000-square-foot building, said Ben Sietsema, owner of Honey-
Renderings show Honeycrisp Ventures’ plans for 1020 Seven Mile Road NW in Alpine Township. | WOLVERINE BUILDING GROUP
crisp Ventures. The property also has the space for an additional 150,000-square-foot industrial building, which Honeycrisp expects to begin marketing soon, Sietsema added. “It checks a lot of the boxes for us,” Sietsema told Crain’s Grand
8 | CRAIN’S GRAND RAPIDS BUSINESS | January 8, 2024
Rapids Business. “It’s an existing building we can repurpose and reposition and we have two tenants going in there that we’re excited about, and then the cherry on top is excess land. We’ll break ground once we have a decent portion of it pre-leased.”
The site plan for the project is expected to be considered by Alpine Township in the first couple months of 2024, Sietsema said. Wolverine Building Group will handle the renovation of the existing building and the new construction. Honeycrisp Ventures is following a similar development playbook at its 3101 Fruit Ridge Ave. NW property in Walker by maximizing the use of a site. Construction recently wrapped up on a nearly 200,000-square-foot building on the property for Specialty Tooling Systems Inc. The city of Walker later approved Honeycrisp Ventures’ plans for a quasi-speculative, 45,000-square-foot industrial building to be constructed next to the larger building, which Specialty Tooling Systems has now committed to leasing as well. Honeycrisp’s growing portfolio
comes as the region faces a shortage of industrial property. The vacancy rate of industrial space continues to hover around 3.2% in Grand Rapids, according to JLL’s latest market report, and 2.5% according to Colliers West Michigan. Even though year-todate absorption rates of industrial space have been negative, the persistent low vacancy rates in the region will continue to cause supply constraints until new supply is delivered to the market, according to JLL. “Vacancy is expected to remain flat as the development pipeline further dwindles,” according to JLL’s most recent industrial report. “Developers today are turning their focus more toward build-tosuit opportunities with captive tenants versus speculative projects, which will further help to maintain the supply-demand balance.”
West Michigan craft brewers lean into diversification in 2024 As industry matures, more creativity will come into play for everyone By Abby Poirier
In 2025, nearly half of all U.S. states will have an AEWR between $17 and $19. | COURTESY OF HERRYGERS FARMS
Farmers’ frustration rises as migrant labor wages spike It’s the 10th consecutive year for H2-A increases By Abby Poirier
Michigan farmers who rely on migrant laborers are bracing for another difficult year ahead. That’s because the Adverse Effect Wage Rate (AEWR) for farmers employing workers on H2-A visas climbs to $18.50 an hour in 2024, the 10th consecutive year the wage has risen. The U.S. Department of Labor announced the new wage rate on Dec. 14 and it became effective on Jan. 1, 2024. The new hourly wage is an increase of 6.7%, or $1.16, over last year’s rate of $17.34. According to John Kran, national legislative counsel at the Michigan Farm Bureau, Michigan farmers are “furious” that their labor costs continue to spike and threaten their sustainability. “They’ve been calling our elected officials in record numbers,” Kran said. The Michigan Farm Bureau has been urging farmers to contact officials ranging from state representatives to the U.S. Department of Labor and the White House to plead for relief. “We need a pause in this wage rate and we need Congress and the administration to work together and come up with a better, long-term plan that keeps people in business,” he said. In 2024, Michigan’s AEWR will be the fifth highest in the U.S., behind California ($19.75), Oregon, Washington and Hawaii. Next year, nearly half of all U.S. states will have an AEWR between $17 and $19. “If you look at the last 10 years, it’s gone up 61%. At $18.50, that’s over $8 an hour higher than our state minimum wage,” Kran said, noting Michigan’s minimum wage of $10.10 per hour. “There really isn’t a rhyme or reason why this rate keeps going up,” Kran said. “It’s not reflective of other minimum wages we see in the economy. We’ve got some states in the south that are $3 or $4 an hour less than our rate, and they’re likely growing the same commodities as us. How do we remain competitive within the U.S. as well as globally?”
In addition to paying for labor, farmers are paying for transportation for workers, housing and administrative costs of the program itself. Altogether, Kran estimates the hourly cost for Michigan growers to employ H2-A labor is closer to $30. “We’re quickly pricing our farmers out of business to be able to grow fresh fruits and vegetables in our state,” he said. “Overall, it’s going to push us to rely more and more on foreign-sourced produce.” Caleb Herrygers, a fourth-generation farmer and operations manager at Herrygers Farms in Oceana County, which has employed H2-A laborers since 2016, anticipates an extra $75,000 in labor costs in 2024. Over the past eight years, the farm is now paying $400,000 more for the same amount of hourly labor compared to eight years ago. “Those are the numbers that are starting to add up,” he said. “You can take a little bit of a punch year to year, but you just can’t keep taking them year after year and not start to feel the effects.” Herrygers Farms is a 1,000-acre farm producing asparagus, cherries and apples. Herrygers employs around 70 workers in the spring to pick asparagus and in fall to harvest the apple crop. Not only are rising wage rates affecting the profitability of farms, Herrygers said it’s affecting the ability of farms to sustain operations over time, as funding needed for upkeep and maintenance of crops and infrastructure is being diverted to pay for labor instead. “Farms keep dipping into (their) margins or slowing down capital reinvestments just so they can afford to withstand the increase in the H2- A rate,” Herrygers said. “I think we’re getting to the end of the rope there. I’m looking around (and) we’ve got a lot of equipment that should have been replaced years ago, and the funding just isn’t there to do that.” Herrygers and other farmers lack “another option” for labor, he said. “What we’re looking at now is either staying in this program or trying to figure out automation.”
As the craft beer industry looks ahead to 2024, successful companies will need to get creative to stay competitive. That’s according to Bart Watson, the chief economist of the Boulder, Colo.-based Brewers Association, which tracks and advocates for independent U.S. craft breweries. “(M)any of craft’s current challenges will require new strategies to reach new and existing customers in new occasions with new flavors and innovations,” Watson said. In a recent presentation, Watson noted that 420 breweries opened across the country, but 385 operations closed their doors in 2023, narrowing a gap that had existed for years since the craft beer boom took off. Brewers Association data show that craft beer production is expected to dip in 2023, the first time the category has declined outside of the first year of the pandemic. Watson attributed the decline to slowing demand, changing retail environments that saw declining draft sales and competition from across the alcoholic beverage category. In West Michigan, brewers are experiencing many of the same challenges. From refreshing staple brands for a new generation to innovating new ways to get customers back into the taproom, local brewers are trying to identify ways to stand out in 2024. Chris Gartman, a principal at Miller, Canfield, Paddock and Stone PLC who specializes in the craft brewing industry, said that despite the market challenges the local sector should continue to grow in 2024. He attributes that expansion to a growing trend among local brewers to shift to new products and diversify their portfolios by jumping into non-alcoholic, mocktail or other beverage trends that have risen in popularity. “It just makes good business sense for people that already know how to make a beverage,” he said. “Why not just diversify your revenue silos a bit, and put something out there that is appealing to people who don’t want alcohol or don’t want to have alcohol all the time?” Founders Brewing Co. is among the West Michigan breweries that has retooled its focus in recent years. As one of Michigan’s oldest brewing operations, Founders has been weighing new strategies to keep itself relevant, including a high-profile advertising sponsorship for next year’s America’s Cup yacht race, an anticipated taproom menu “reset” and the introduction of a new non-alcoholic sparkling water product that hit Michigan store shelves for the first time in mid-December. Sandy Anaokar, the chief marketing officer for parent company Mahou USA, said that Founders
Brewers Association data show that craft beer production was expected to dip in 2023, the first time the category has declined outside of the first year of the pandemic. | JOE BOOMGAARD
has been “one of the few winners when it comes to market share growth” in the past year, despite a “very challenging market for craft (beer).” Some of that is also a result of a new shift in marketing and direction for Founders’ biggest brand, All Day IPA. In 2023, Founders introduced a new All Day variety pack to lure fans to new variations and flavors, as well as shifted brand marketing toward a younger audience. The All Day portfolio is poised for more change in the year ahead, as Founders plans a brand refresh in the coming months, Anaokar said. “It felt like we were talking to ourselves a little bit when we were talking about this brand,” he said. “Everyone knows All Day IPA, and over a couple of years of research and talking to consumers, we found that maybe we’re not as popular as we thought we were and maybe everybody didn’t quite know everything about All Day. “It was a good moment of reflection for us and really craft beer as a whole that you just can’t expect beer to sell itself on its own merits. And yes, it is a delicious beer and it’s highly rated, but (we’re) reaching the consumer of today who isn’t aware of that, and maybe for this consumer, All Day might’ve been their mom or dad’s brand.” Anaokar’s sentiment is reflective of a shift in craft brewing overall. With a maturing craft beer market and educated consumers, brewers need to do more than brew well to stand out in a crowded industry and compete for attention. “We’re finally getting around to that where (craft beer is) not introductory to people anymore,” said Jonathan Ward, who works as the “experience warden” at Brewery Vivant, production planning at Broad Leaf Brewery and Spirits, and at Speciation Artisan, where he does social media and event planning. “It’s not something that people are actively seeking out just to come in and try different beverages.”
With that in mind, Ward said investment in 2024 is about “broadening what it means to be a brewery, and specifically what it means to be a taproom.” At all the taprooms he works with, owners are leaning into new, exciting initiatives to keep drinkers invested in the brands. For example, Broad Leaf is using social events like art and bookstore popups and the addition of a new pickleball court to keep customers engaged, while Speciation plans to explore food offerings in the new year. At Founders, Anaokar said the company plans to focus in 2024 on investing in Michigan brands. “It’s about reaching new customers (and) evolving our biggest brand but it’s also about innovating,” said Anaokar. One of those innovations is the addition of Hoppy Mood to the Founders lineup. The hopped sparkling water gets Founders into the commercial non-alcoholic market and is aimed at people who might not want to have several drinks in a row. The hop water contains no alcohol, sugar or calories and uses natural terpenes to augment the drink’s flavor. The product marks Founders’ first non-alcoholic beverage for sale outside of its taproom. “The innovative use of botanical terpenes just provides such a different flavor profile from the standard NA drink,” Anaokar said. “The good thing that previous releases of hop waters have done is established that category a little bit and allowed us to say, now how could we be better?” Ward echoed those sentiments, noting the focus on innovation allows brewers a new sense of creativity. “There’s this thought that craft beer’s run its course. Everybody knows all the different styles now. What do we have left to explore?” Ward said. “The crazy part is that where we’re at right now in craft beer gives us more creative freedom than we’ve ever had.”
JANUARY 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 9
Charity care declines at Michigan hospitals Health systems say state’s expanded Medicaid coverage and more insurance enrollment led to reduced need By Dustin Walsh
Michigan’s major nonprofit health systems largely provided less free or discounted care, known as charity care, in 2022 as hospital expenses rose under inflation and labor shortages. But bad debt, care the systems could not obtain reimbursement for from insurers and patients, flowed the other way and rose substantially. Some experts say rising costs caused systems to clamp down on charity care spending, but the systems say Michigan’s expanded Medicaid coverage and increased marketplace insurance enrollment last year led to reduced need for charity care. However, charity care is likely to increase in the coming years as Michigan continues its Medicaid redetermination process, which so far has purged roughly 270,000 residents from its rolls. Charity care at Michigan’s largest health system, Corewell Health, dual headquartered in Grand Rapids and Southfield, plummeted to $36.4 million in 2022 from $95.3 million in 2021, according to Crain’s data. “Michigan’s Medicaid expansion, coupled with our financial counseling work and Medicaid or marketplace enrollment support, has reduced the demand for charity care,” the system said in an emailed statement to Crain’s. “In addition, in 2022, the federal government reimbursed Corewell Health for COVID treatment and testing for uninsured patients at
Medicare rates. Many of those patients otherwise would have qualified for charity care.” Medicaid enrollment grew by more than 700,000 during the pandemic thanks to the federal Families First Coronavirus Response Act, signed by President Donald Trump on March 18, 2020, which required states to continue enrollment of Medicaid beneficiaries for as long as the government declared the COVID-19 pandemic a public health emergency. However, the feds rolled back that stipulation as part of the 2023 budget bill signed by President Joe Biden. In April, states were instructed to begin to re-establish their redetermination process, which assesses whether an individual receiving Medicaid benefits continues to be eligible. Michigan delayed its process until June and will take the remainder of the year, at least, to determine who remains on Medicaid. Nationally, Medicaid enrollment grew by more than 21 million between February 2020 through December 2022, according to data from the Kaiser Family Foundation. Largely thanks to that expanded Medicaid coverage, charity care dropped to $42.7 million in 2022 from $45.5 million the year prior at University of Michigan Health in Ann Arbor. At UM-Health West in West Michigan, charity care fell to $10.8 million from $11.2 million in 2021. The academic hospital system also said in a statement that extended Medicaid coverage lowered both charity care and bad debt, which to-
University of Michigan Health-West in Wyoming. | COURTESY PHOTO
taled $74.4 million in 2022 versus $79.2 million a year prior. The system also said in a statement that recording issues yearover-year provides an uneven look at charity care and bad debt. “Timing for recording charity care and bad debt: on occasion, the write-off of unreimbursed care occurs well after date of service,” the system wrote in a statement to Crain’s. “The disruption of the pandemic likely contributed to timing issues, which may have influenced the change from 2021 to 2022.” But to some experts, the decline of charity care is tied to growing expenses. Nonprofit hospitals’ median operating costs jumped roughly 20% from 2020 to 2022, according to a Modern Healthcare analysis of data from 255 health systems — comprising most U.S. nonprofit acutecare and specialty hospitals — compiled by Investortools-owned Merritt Research Services. Between 2019 and the end of 2022, expenses at Grand Blanc-
based McLaren Health Care rose $52 million while revenue only increased by $37 million. Charity care plummeted in 2022 to $52.2 million, down from $75.1 million in 2021. Bad debt also dropped substantially to $83 million in 2022 from $126.6 million in 2021. “When your purse is tight, you tighten the string,” Ge Bai, an accounting and health policy professor at Johns Hopkins University, who studies hospitals’ charity care spending, told Modern Healthcare. “Hospitals had to squeeze their charity care spending to maintain financial viability.” Detroit-based Henry Ford Health and Warren-based Ascension Michigan were the outliers among Michigan’s major systems. Charity care at HFH rose to $73.7 million in 2022 from $63 million in 2021. At the Catholic-affiliated Ascension, charity care rose to $119.3 million last year from $94.7 million in 2021. That trend line is likely to continue with so many peeled off Medic-
aid coverage. UM-Health is already seeing a rise, it wrote in a statement. “Currently, we are seeing an increase in bad debt and charity care, which likely corresponds to the discontinuation of Medicaid coverage earlier this year tied to the end of the COVID-19 pandemic,” the system wrote. As of mid-November, more than 10 million nationally have been purged from Medicaid rolls, including the roughly 270,000 in Michigan, a number that is likely to rise. Hospitals have long been challenged to increase charity care spending as part of their nonprofit mission, particularly when profits are great. Sens. Elizabeth Warren (D-Mass.), Raphael Warnock (DGa.), Dr. Bill Cassidy (R-La.) and Charles Grassley (R-Iowa) sent a letter in August to the Internal Revenue Service pushing, in part, for required standardized community benefit reporting, including charity care spending. Corewell, however, said it spent $1 billion in total community benefits in 2022, despite dropping charity care. UM-Health also said it increased community benefits spending. “University of Michigan Health has maintained and increased its investment in community services to improve health equity and address social determinants that influence health and quality of life,” the system wrote. Dustin Walsh is a reporter for Crain’s Detroit Business. Modern Healthcare contributed to this report.
Automation executives confident in 2024 demand Schools also are producing more techsavvy graduates By Kayleigh Van Wyk
John Amrhein believes the time is now for companies that want to launch automation solutions into their operations to follow through. Amrhein, executive vice president and partner at Wyoming-based Orka Automation LLC, is optimistic heading into 2024. Citing lower forecasted interest rates and a sense of normalcy in the automotive sector following UAW strikes, delayed launches and lower consumer demand, Amrhein expects automation solutions providers to experience full pipelines and longer lead times on projects in 2024. “My recommendation to the companies that are sitting on the sidelines is: ‘Let’s go. Let’s do it now,’” he said. “Your production might be a little bit lower, but … there’s not going to be a lot of automation company capacity when companies start spending again.” Despite setbacks in 2023 for
from customers on two fronts: those that had already been adopting automation solutions and those that were dabbling in the field as a result of pandemic-related labor shortages. Heading into 2024, Amrhein said the company is still seeing growing demand and purchase orders from customers in industries such as consumer products — which makes up more than half of Orka’s business — as well as electronics and medical devices. While automation demand from the automotive sector seemed to decline in 2023, he has a brighter outlook for 2024. “I’m pretty confident that EVs will do well … and that — John Amrhein, executive vice president and we should see a lot of really partner at Wyoming-based Orka Automation LLC good launch activity next year, hopefully, depending sion to meet customer demand on interest rates,” Amrhein said. and streamline operations in light “Consumers will start buying cars again and we’ll get a little bit more of some recent acquisitions. Founded in 2017 to meet re- of demand coming from there.” Other West Michigan automaquests for automation solutions from sister company Component tion companies also appear to be Engineering’s customers, Orka bracing for new surges in demand Automation during the pandemic in the new year, even after steady experienced surging demand growth in 2023.
some sectors, such as warehouse automation, West Michigan’s automation activity has ramped up in recent years, in large part as a response to labor shortages. Solutions providers forecast more of the same growth in 2024. “We’re optimistic about our company, but we’re also optimistic about the future (of automation),” Amrhein said. Last month, Orka Automation announced a $2.5 million expan-
“My recommendation to the companies that are sitting on the sidelines is: ‘Let’s go. Let’s do it now.’”
10 | CRAIN’S GRAND RAPIDS BUSINESS | January 8, 2024
“2023 has been a good year with a lot of odd economic conditions for our customers,” said Scot Lindemann, CEO of Mission Design & Automation, noting that manufacturing in the U.S. appears to be resurging from pandemic-related challenges, including through onshoring efforts and turning to automation to resolve labor shortages. “With harder-to-get labor, the demand is there (for automation), so the automation business continues to be growing well even though the economics have been strange for three years,” he said. Mission Automation’s growth has been evident in recent years. In 2021, the solutions provider wrapped up a roughly $5 million expansion in Holland, adding a new 50,000-square-foot facility to support more large-scale projects. Earlier this year, Lindemann told Crain’s Grand Rapids that the company already has been contemplating its next expansion as the new facility is at capacity. The more that access to technology advances, the more automation becomes a viable solution for challenges in manufacturing and other industries, he said. “As advanced robotics, software,
AI and vision systems continue to get better and better and easier to implement, automation becomes feasible in a lot more markets where, maybe in the past, the technology was too difficult or too expensive to be implemented well,” Lindemann said. Lindemann also sees continued effort and emphasis on supporting this new technology from an education standpoint in the near future. Recent data from market analysis firm Lightcast — as highlighted in a Lakeshore Advantage report on smart manufacturing — indicate that West Michigan produced 202 graduates in automation engineering in 2021. As well, the number of automation engineers in the region has increased by 40% over the last five years and is expected to grow another 15% in the next five years, according to the data. “Finding technical people to support the newer technology is getting easier every year,” Lindemann said. “Of course, there’s a talent crunch to find good people, but the schools are stepping up their game and the education system is doing a better job than ever.”
INNOVATIVE Health Care Effective health care is about more than doctor’s offices and hospitals these days. Vast teams of people are dedicated to improving health care across a broad spectrum of industries. Medical device manufacturers are creating and making products that just a few years ago were pipe dreams. Frontline medical workers are using new processes and procedures to improve an individual’s whole health. Venture capital firms are backing health systems with financing for growth and research. Join Crain’s Grand Rapids Business and a panel of experts as we explore innovation in health care and what that means for the future of West Michigan.
James Hill joined Grand Rapids-based venture capital firm Grand Ventures as partner. | MARK SANCHEZ
Grand Ventures bolsters health care expertise with new partner James Hill comes with a background in digital health Crystal Mountain ski resort in Benzie County. | COURTESY PHOTO
Ski resorts say warmer temps, inflation may hinder spending After two record-breaking years, operators expect a slowdown By Rachel Watson
Northern Michigan ski operators are expecting a slightly more challenging winter tourism season this year after back-to-back banner years for ski visitation across the U.S. and Michigan. Executives at Crystal Mountain in Benzie County’s Thompsonville and Boyne Mountain Resort in Charlevoix County’s Boyne Falls said they are seeing slightly lower ski resort sales so far this winter compared to the same period last year. Jim MacInnes, chair and co-owner of Crystal Mountain, said his ski resort’s sales were “definitely softer” as of Dec. 4 than at the same time a year ago, with “one of the stronger” El Nino events of the past several years ongoing and expected to last through midwinter. “(Weather) always has been a variable,” he said. This year, the warmer temperatures have meant less natural snowfall and a later start making snow, he said. “We’ve actually made quite a bit of snow already, but we haven’t had enough time to get everything open,” he said, noting only about nine of the resort’s 59 slopes were open as of the first weekend of December. “Last year, I think we had a little better start-up.” MacInnes said Crystal Mountain has benefited over the past few years from warmer Lake Michigan temperatures, because as cold air moves over a warmer lake, the result is more lake effect snow. He said the resort added five snow guns this year, bringing its total number of snowmaking machines up to 177 in an effort to
help keep the ski runs freshly powdered. But for the snow machines to work, the resort needs to see temperatures of 28 degrees or colder with less than 80% humidity. MacInnes said he isn’t confident about seeing that cool-down come to pass, as the 2023-24 winter weather outlook from the National Oceanic and Atmospheric Administration is predicting a 40% to 50% chance of above-normal temperatures through the end of February. Jason Perl, general manager of Boyne Mountain Resort, said while he is “optimistic” about this season, sales are trailing slightly behind where they were at this time last year, thanks to the weather. Only about eight of the resort’s 65 ski runs were usable on opening weekend. “In the wintertime, snow really helps drive the business and volume,” he said. As part of a strategy to diversify its offerings beyond snow, the resort last year added the new SkyBridge attraction, a 1,200-footlong, 118-foot-high pedestrian bridge positioned between two peaks overlooking Boyne Valley. In the fall, it drew leaf-peeping crowds. Starting at Thanksgiving, it was decked out with a holiday light display that will last through March. “We’ve got folks driving up from Texas just to visit the SkyBridge, and Illinois, Indiana and kind of that whole portion of the middle of the country, which is awesome,” he said. “And the SkyBridge is definitely attracting a new demographic for the resort and the region. When we debuted the SkyBridge last fall, some local
12 | CRAIN’S GRAND RAPIDS BUSINESS | January 8, 2024
businesses, like salons and whatnot, were just saying how impressed they were with the (sales) volume that they were doing when they would normally be slow.” Boyne Mountain offers other non-skiing attractions, too, like a zipline adventure, an indoor water park and electric snow bikes called MoonBikes. Still, Perl said he expects inflation and the economy will cause many households to cut back on “bigger trips” this winter. Since about half of Boyne Mountain’s core customer base is outside Michigan, its bottom line could take a hit. The projected dip in spending at ski resorts this season comes after two record-breaking years for snow sports tourism in the U.S. The National Ski Areas Association reported in August that U.S. ski areas experienced record visitation with an estimated 64.7 million skiers and lift riders during the 2022-23 season, a 6.6% increase over the previous record-breaking season of 60.7 million skier visits in 2021-22. The Michigan Economic Development Corp. also reported on Nov. 27 that the state’s outdoor recreation economy grew 11% from 2021 to 2022, the most recent year for which data are available. This contributed $12.36 billion to Michigan’s economy. The top outdoor recreation category by growth percentage from 2019 to 2022 was snow sports. Michigan ranked 11th-fastest growing for that category among all states, with an 88% growth rate. “The industry is healthy … and I think that’s going to be an important story for Michigan’s future going forward,” MacInnes said.
By Mark Sanchez
Grand Ventures added a new partner who brings expertise in investing in digital health, an area the Grand Rapids investment firm wants to deepen. James Hill joined Grand Ventures after nearly five years with corporate venture capital firm First Trust Capital Partners LLC, based in Wheaton, Ill. He joins founder Tim Streit, Camila Noordeloos and Nathan Owen as general partners at Grand Ventures. Adding a fourth partner gives Grand Ventures a deeper talent pool as the venture capital firm grows, deploys capital from a new $50 million second venture capital fund that closed fundraising in September, and plans to raise additional funds in the future. “This has always been a multiyear journey and a big, long-term vision. We hope that Grand Ventures can raise the third fund, the fourth fund, the fifth fund and beyond and, hopefully, go on to raise hundreds of millions of dollars,” Streit told Crain’s Grand Rapids Business. “Especially at that scale, you need a strong and diverse partnership,” he said. “As we think about planning for the future, when you have the opportunity to attract talent such as James, you sort of need to take advantage of those opportunities that don’t come around every day.” Hill’s primary focus at First Trust Capital Partners was on digital health and, to a lesser degree, financial technology. Prior to First Trust, he worked for six years at Edison Partners, a Lawrenceville, N.J.-based investment firm. According to Streit, Hill’s expertise can help Grand Ventures further break into investing in digital health, an emerging, fast-growing field that’s projected to grow at double-digit rates for the next several years. “If you think about some of the sectors in Michigan, as well as across the nation, that continue to be most interesting, both in terms of creating innovation, cre-
ating a better future and creating returns, health care is consistently one of the most, if not the largest, and also prolific sector,” Streit said. “Digital health is really at a very fascinating phase when combined with AI and all of the other things going on about how digital health will help. “That’s the area I’ve spent some time on, but I wouldn’t call myself an expert, so James’ combination of health care, plus fintech — and I’m focused mostly on fintech — really helps us strengthen our presence in a new area, which is health care, and build a stronger expertise in health care and strengthen our presence and relationships in fintech as well.” In better targeting heath care, Grand Ventures will not consider investments in biotech or medical devices, and “will kind of lean in on digital solutions,” Streit said. Hill sees opportunity in digital health and software that can aid physician practices and streamline and add efficiency to the health care system “that previously didn’t exist,” he said. Streit and Hill have known one another professionally for years from when Hill was at Edison Partners and Streit was with Huron River Ventures before launching Grand Ventures in 2017. They’ve invested in deals together, stayed in touch and became friends. A Michigan State University alumnus who holds law and MBA degrees, Hill and his spouse, who’s from Michigan, wanted to return to the state. As Grand Ventures raised its $50 million second fund, Streit said he “planted the seed” with Hill about joining the firm. Beyond the personal reasons, Hill believes the move will contribute to growing Grand Ventures into a larger venture capital firm that has been built “from the ground up.” “It’s been pretty exciting to see the platform that’s been created, and what gets me excited about the whole thing is there’s a new fund and excitement about deploying capital,” Hill said. “As Tim and I talked, there’s really an opportunity to put my DNA, kind of combined with Tim’s, to build something that’s really exciting, big and, hopefully, very successful.”
Norwegian aluminum recycler opens $150M plant Company expects to produce 265 million pounds of recycled aluminum per year By Kayleigh Van Wyk
A Norwegian aluminum and renewable energy company recently completed a $150 million processing plant in Southwest Michigan that brings the company’s unique recycling technology to the U.S. Norsk Hydro ASA’s (Hydro) investment will create 70 new jobs in Cass County. While Hydro operates various plants in the U.S. and one in Canada, the new plant will function as the company’s largest producer of Circal, the company’s own brand of recycled aluminum made with a minimum of 75% recycled, post-consumer aluminum scrap. The plant, located at 1475 Follett Drive in Cassopolis, will recycle the post-consumer aluminum scrap into products for the automotive, transportation, building and construction, and consumer goods industries. The company expects to produce 265 million pounds of recycled aluminum per year at the site. After successfully pioneering the technology in Europe for several years, Hydro decided to bring the technology to the U.S. after witnessing growing demand for environmentally friendly products. “We are starting to see the trends toward customers wanting more circularity and looking more at the environmental footprint of the products that the consumer can buy at the end,” said Eivind Kallevik, executive vice president
of Hydro Aluminum Metal. “So we’ve done this for quite some years in Europe … and then we looked at: How can we introduce this product into the U.S. market?” Hydro already had a presence in Michigan with its Hydro Aluminum Technology Center that opened in Zeeland in 1996. Hydro also announced a partnership with Grand Haven-based Shape Corp. last year to introduce Circal in the U.S. Kallevik said the company chose the Cassopolis site for the recycling plant because of Michigan’s automotive history and because the community felt like the right fit. The company already has recruited 68 employees to work at the facility and has started operations, according to Kallevik. Production is expected to reach full capacity in 2024. Hydro also plans to relocate the technology center in Zeeland to the new Cassopolis site in 2024 with an expanded operating lab for 10 R&D staff members. “To integrate the R&D people together with people working in operations is quite useful because then we can get hands-on with shorter distances between technology development and production,” Kallevik told Crain’s Grand Rapids Business. “It gives us a much better position in terms of developing different alloys together with customers and putting them into production much quicker.”
Norsk Hydro opened a new plant in Cassopolis where it expects to produce 265 million pounds of recycled aluminum per year at the site. | COURTESY PHOTO
The aluminum scrap that Hydro recycles is sourced from neighboring states and local suppliers. Through advanced processing technology, Hydro can recycle the aluminum with reduced energy use during the production phase. The company uses advanced de-lacquering and melting methods where the energy output from one part of the process is used for the other, reducing energy consumption by 30% while also improving metal recovery. Hydro officials say the Circal from the Cassopolis plant will help support automotive innovation and sustainability. In particular, the recycled aluminum will aid in the light-weighting of electric and hybrid vehicles, which can benefit automakers and help with EV design. “One of the age-old goals of companies that design, engineer
and manufacture vehicles is to make them as light and as safe as possible, and one of the downsides of electric vehicles at this present time is that the batteries are very heavy,” said Glenn Stevens, executive director of MICHauto and vice president of mobility initiatives for the Detroit Regional Chamber. “Any opportunity that a company has as they design a vehicle — whether it’s the use of aluminum or lightweight composite materials — is really something that’s extremely important to them as they try to lightweight and make these vehicles efficient for the future.” Stevens said companies like Hydro are important to have in Michigan to support the supply chain and boost the state’s EV capabilities. “One of the interesting things about the electrification of transportation is that it really widens the
supply chain, and the ability for Michigan to have a player like that here as part of our supply chain is really positive,” Stevens said. Hydro officials also echoed the state’s manufacturing capabilities in its reasoning behind locating the new plant in Michigan. “We have been in business for as long as Michigan has been making cars, and with manufacturers switching to electric vehicles, the automotive industry is where the benefits of lightweight and infinitely recyclable aluminum really can make a difference to consumers looking to reduce transport costs and emissions,” Hilde Aasheim, president and CEO of Hydro, said in a statement. “With the automotive industry embarking on its biggest transformation since the assembly line, the state of Michigan is fundamental as consumers go electric.”
Yoga studio plans move and $1.2M expansion Development will include child care, co-working space, other services By Abby Poirier
A Grand Rapids yoga studio is expanding its services to offer a comprehensive range of pre- and post-natal resources and introduce child care options in a larger building on Breton Street. Mind Body Baby founder Heidi McDowell says the newly formed MBB Collective aims to provide local mothers in all stages of motherhood with the services they need before, during and after giving birth. The yoga studio, currently located at 1501 Lake Drive SE in Eastown, is moving and expanding next year to a new space at 2020 Breton St. SE. At the new location, McDowell plans to open a nutritionally focused cafe, coworking space, onsite child care and provider offices, in addition to Mind Body Baby’s fertility, prenatal, postpartum, and children’s yoga, doula and support group offerings. With the 7,920-square-foot space currently under renovation, McDowell plans to complete the
A rendering of MBB Collective’s new space in Grand Rapids. | COURTESY OF MBB COLLECTIVE
$1.2 million expansion in mid2024. In addition to its movement and support services, MBB Collective plans to collaborate with two other local practitioners, leasing office spaces to providers with a perinatal focus. McDowell said she’s hoping to attract providers offering physical therapy, chiropractic, massage therapy or other services that will appeal to the community she serves. While mothers are at MBB Collective, they will be able to use
on-premises child care through MBB Collective, which will also be made available to partnering practitioners and providers. “I think one of the biggest obstacles that we find as moms, especially new moms, is having to choose between yourself and your child,” McDowell told Crain’s Grand Rapids Business. “This is just another avenue for making (MBB Collective) accessible. The entire building will have access to onsite daily child care. As long as you remain in the building, you
can choose to come upstairs, take some movement classes or cowork, or go downstairs to a provider and leave your child in the capable hands of a trained child care professional while you take care of your own needs.” McDowell, who opened Mind Body Baby in Grand Rapids’ Eastown neighborhood in 2022, said her own experiences in fertility treatments and becoming a mother have guided her vision for Mind Body Baby. “It was something I sort of stumbled into,” she said. “I was on my own journey to becoming a mother, going through fertility treatment and just really recognizing that there was a big gap between medicine and movement. I was already a yoga teacher (and) I kept wanting just to bridge that gap.” From there, McDowell became a prenatal yoga instructor, and then furthered her learning with certification as a postpartum and infant care doula and labor doula, which helped her recognize the gaps between medicine and movement for pre- and post-partum women. McDowell also said she experienced isolation during her fertility
treatments and pregnancy and recognized “how important community really is while you’re going through those stages of life.” “I didn’t want anybody to ever really have to feel alone in that,” she said. “So I took all of the modalities that I already knew and started to build upon that and built the community space, which is the current iteration of Mind Body Baby.” Renovations and architecture will be overseen by Mark McDowell, Heidi McDowell’s husband and owner of architecture firm MEM Designs LLC. The building will undergo a full interior renovation. While she has not set an opening date, McDowell is excited to introduce her new vision for community care to West Michigan when MBB Collective opens in summer 2024. “This is a model that really hasn’t been tried and tested before,” she said of the collective. “In my opinion, it’s quite innovative: having a multi-tenant space and a centralized shared part of that space being the child care. I recognize that this community’s worth the effort and it’s worth taking a chance and a risk.”
January 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 13
COMMENTARY
I
t is no surprise that West Michigan has a housing crisis. We hear about it almost daily, whether from The Right Place’s Economic Outlook for 2024; the Grand Rapids Chamber of Commerce’s support for housing; Housing Next; the initiative being spearheaded by the Allegan County Community Foundation to increase accessible, appropriate, and affordable housing across the county; or the United Way of MontJohn H. calm — Ionia Counties’ Bitely, a recent Community fourthLeaders Conference on generation Housing — they all are Algoma working to address the Township shortage of workforce resident, housing. founded Sable Though I applaud Developing Inc. each of these groups for in 1996. Sable their work in this space, Homes and we still need to address Sable Realty the elephant in the followed. room, which has been simmering for years and has now come to a boil with the increased interest rates. Housing Next’s recent study shows continued increases in demand totaling a need for 50,000 new housing units needed by 2027 to keep up with the population
growth in Kent and Ottawa counties. Allegan County’s assessment, which was recently completed, shows a 6,200-unit gap in housing for the same period. And in Montcalm and Ionia counties there is a deficit of new homes too. We hear about how interest rates are affecting housing sales, most of which has to do with existing supply not coming onto the market because homeowners are reluctant to sell homes that have some of the lowest mortgage rates in history. But, even if an influx of existing homes were to come online, that still would not be enough inventory to address the crisis at hand. Our state government is authorizing subsidies to help lower costs associated with rent, but at the same time are adding codes that increase home prices. According to the National Association of Home Builders, regulations imposed by all levels of government account for $93,870, or 23.8% of the current average sales prices ($397,300) of a new single-family home. Of the $93,870, $41,330 of that is attributable to regulation during development, and $52,540 is due to regulation during construction. And what may even be the icing on the cake is the vocal “Not in My Back Yard” individuals, who thwart new housing construction. I’d like to dissect the issue at hand. In recent years several projects that could have
GETTY IMAGES
Housing shortage made worse by ‘NIMBY syndrome’
created housing in the region have fallen victim to the NIMBY syndrome. From Sparta Township to Alpine Township and in the city of Walker and beyond, projects have come to screeching halts after millions of dollars have been spent in purchasing land rights, paying for engineering/environmental studies, and local municipality permitting fees. By my count throughout the last three years, over 1,000 single-family homesites have not seen the light of day due to vocal groups placing approved developments on a referendum
vote, or by local government bodies being pressured to deny site plans for these housing developments. We all know there is a housing shortage, and I have spent my 30-year career focusing on attainable/workforce housing. We often work through the burdensome regulations forced upon us during the development phase, including larger lot sizes, requirements for infrastructure like sidewalks and curbs, open spaces, and others, to later be denied because individuals do not believe the development should be near them. I am asking our business leaders in West Michigan, who by all measures acknowledge that there is a housing shortage, to help become part of the bigger solution and join efforts with the Home Builders Association of Michigan, or by supporting the work of Housing Next through the Grand Rapids Chamber Foundation. By doing so, you will join the voices of the local builders who can help build West Michigan out of the current shortage of single-family homes. More importantly, I hope more individuals who see the need for housing in the region become involved in their local government planning commission, zoning board of appeals, or city/ township boards and commissions. It’s time that we stop talking about the problem, and instead come together to stop the issues that are creating the crisis at hand.
COMMENTARY
Last call for Grand Rapids’ neighborhood dive bars
P
erhaps the worst-kept secret in West among bar staff and patrons that night, Michigan is our affinity for gastro- Kate messaged me and managing editor Andy Balaskovitz with the news. pubs. “I was kind of waiting for this to happen Every developing commercial corridor unfortunately,” she wrote. in Grand Rapids is chockablock Many patrons appreciated with swanky new joints that are Rocky’s as a place to see new bands serving up $18 hamburgers or DJs, but it also held a special topped with exotic ingredients place among many members of that we wash down with $7 pints the Fourth Estate, given its proximof local craft IPA. ity to the former newsrooms of the Executed well, both can be deliGrand Rapids Press and the Grand cious, if not desirable. But while Rapids Business Journal. local restaurateurs and bar owners My own fondness for Rocky’s keep serving up these gleaming, stemmed from the bar typically seemingly cookie-cutter edifices Joe to American cuisine, we’re slowly Boomgaard is maintaining a draft line dedicated losing the cherished neighbor- editor of Crain’s to Hamm’s, the so-called “beer refreshing” with its rotund blackhood watering holes that once Grand Rapids and-white bear tap handle peeking dotted all corners of the city. Business out over the other taps as if to welThe dive bar is a dying business come this scribe in for a pint after a long day. model, and it’s a damn shame. (Side note: A quick check of the beer app One of the latest victims, at least as of this writing, is Rocky’s Bar and Grill on Ottawa Untappd now shows just one location in Avenue, which closed suddenly last month Grand Rapids serving Hamm’s on draft, and is soon to be swallowed up as part of and at $3 a pint, too.) When a neighborhood dive bar closes, it Corewell Health’s steady push into the can feel akin to the death of an old family Monroe North neighborhood. Kate Carlson, who reports on commer- friend, and each closure rips off the scab cial real estate for Crain’s Grand Rapids and starts the healing anew. Indeed, many of these establishments go Business, stumbled into the Rocky’s closure story when she attended a concert on what back generations. Kale’s Korner, a former turned out to be the bar’s final night open. cash-only bar at the corner of Bridge Street As word of the impending closure spread and Alabama Avenue NW, had been open
for more than 40 years before ultimately closing down for good during the pandemic in 2020. Both Rocky’s and Kale’s also share a common thread in that their property became too valuable to ignore because of a broader renaissance in their surrounding neighborhoods. While it would be foolish to lament neighborhood reinvestment, the lack of new watering holes coming in to fill the gap certainly proves concerning for fans of the local bar scene. Dive bars seemingly grow out of and become extensions of their neighborhoods. As a local, you go there to hang out with friends and neighbors and run into the other regulars. But as an outsider, they can be even more valuable, especially if you follow the Anthony Bourdain school of travel. You visit dives to be a fly on the wall and get a sense for the local flavor, to transport yourself away from the familiar and get immersed in the daily life of a place that isn’t home. That’s led me to being welcomed in by rowdy Habs fans over pints of Molson at a corner pub in Montreal as they cheered on their hometown hockey team, downing shots of Fireball with a room full of strangers in Escanaba to celebrate a couple’s engagement, and learning the strategy behind a successful game of bar dice at a locals’
hangout in Oshkosh, Wis. The best dives have their own personalities and cast of characters who hang out there, and that’s what fellow aficionados miss each time one of these establishments sells out or closes. But rather than drown our collective sorrows each time yet another tavern turns off the neon lights for good, the time is ripe to take action, especially in the first month of
When a neighborhood dive bar closes, it can feel akin to the death of an old family friend. a new year. According to a survey last year by Morning Consult, 15% of Americans said they planned to abstain from drinking in the month of January, which is already one of the toughest months in the bar business. In other words, people emboldened by New Year’s resolutions and fresh gym memberships are planning to take a break from visiting their local pubs at a time when bar owners need their patronage the most. Maybe this year it’s time to turn “Dry January” on its head and celebrate Dive January instead. Resolutions be damned: The health of our favorite watering holes depends on it.
Sound off: Send a column for the Opinion page to tim.gortsema@crain.com. Please include a phone number for verification purposes, and limit submissions to 500 words or fewer. Please include a headshot, title and organization name with the submission. 14 | CRAIN’S GRAND RAPIDS BUSINESS | January 8, 2024
Peer-to-peer car sharing an option at Ford Airport Turo, which is similar to Airbnb, debuted over the holidays By Kayleigh Van Wyk
A new partnership between the Gerald R. Ford International Airport and peer-to-peer car sharing company Turo offers a new transportation option for travelers, officials say. The airport authority board earlier in 2023 voted in favor of partnering with Turo to allow onsite vehicle drop offs and pick-ups at the airport for Turo hosts and guests. San Francisco-based Turo is a car-sharing marketplace enabling private car owners to rent out their vehicles, similar to how Airbnb operates for short-term
COMMERCIAL From Page 1
Construction Co. Cost: $110 million Completion: Summer 2024 Developer: Corewell Health Despite an active construction site, some Corewell Health employees are already working from the health system’s $110 million office development in Grand Rapids’ Monroe North neighborhood. Plans for Corewell Health Place — formerly known as the Center for Transformation and Innovation that will serve as the largest in-state health system’s West Michigan headquarters — include a new eight-story, 157,000-squarefoot building that will be connected by a two-story bridge to a renovated BrassWorks building. However, other potential surface lots have faced pushback from local residents and are as of now undetermined. The development is also set to include two parking structures with 420 spaces each, and a 100to 150-space surface parking lot on Bond Avenue. “We are engaging with local leaders and neighbors before proposing future phases. This new development allows us to consolidate 26 different leased spaces into one, creating efficiency and cost savings and encouraging collaboration and innovation among team members,” Corewell spokesperson Ellen Bristol said in a statement. “It also helps us play a role in the continued growth and invigoration of the city.” The office park is part of the Corewell Health Place North Monroe Campus Master Plan, which proposes adding housing for medical residents and fellows, as well as a market-rate housing project, which would each contain their own onsite parking. Future phases could also include retail and additional office space, Bristol said. Meanwhile, Corewell’s development work doesn’t stop in Monroe North. As an honorable mention
Passenger pick-up and drop-off areas at Grand Rapids’ airport. | COURTESY OF GERALD R. FORD INTERNATIONAL AIRPORT
rental housing. The service is designed to increase mobility options as an alternative to traditional rental cars for travelers across the U.S., Canada, the U.K., France and Australia. “This collaboration further elevates the passenger experience by
providing a peer-to-peer car sharing platform that expands our transportation options to meet the diverse needs of our valued travelers,” Maria Kim, CFO of the Gerald R. Ford International Airport Authority, said in an emailed statement to Crain’s Grand Rapids.
to this list, construction also is ongoing on a new 12-story, 240,000-square-foot outpatient facility along Medical Mile, across from Butterworth Hospital. The project, started in summer 2022, will consolidate 10 medical practices spread throughout the Butterworth campus.
host block parties on Stocking Avenue with other nearby bars and restaurants, Kivinen said. “We’ve gotten unbelievably good feedback from the community and community organization,” Kivenen said. “They’re very excited to get this concept up and running.”
Sip Shine
Adelaide Pointe
Location: 401 Stocking Ave. NW, Grand Rapids Architect: WLP & Associates Ltd. Construction manager: Orion Construction Cost: $5 million Completion: Spring 2024 Developer: Sip Shine LLC
Location: West Western Avenue, Muskegon Architect: Edgewater Resources and Fishbeck Inc. Construction manager: Milwaukee, Wis.-based Catalyst Construction Cost: $250 million Completion: First phases expected to be completed in 2024 Developer: Emily and Ryan Leestma
Grand Rapids-based moonshine and canned cocktail marketer Sip Shine is constructing a “mini Nashville” on the city’s west side. The company is building its first tasting room at the former Harmony Hall building on Stocking Avenue. Construction to convert the three-story building into a tasting room, restaurant, daily live music venue and rooftop bar is expected to finish in April or May of 2024, said Dale Kivinen, experience director at Sip Shine. The project is designed to resemble Nashville or Gatlinburg, Tenn., bars, Kivinen said. The first floor will contain a tasting room where guests can sample Sip Shine products while they wait to be seated for food or drinks on the upper floors of the establishment. Plans include a touring-quality stage on the second floor with daily live music, and the rooftop will include a bar and seating that can also be rented out for events. “The rooftop has an unbelievable view of the city skyline,” Kivinen said. “The building is positioned just at the right angle to see the entire cityscape.” He added that patrons in any part of the building will be able to see either the stage or a live stream of performances, Kivinen said. Sip Shine also plans to use its onsite parking lot to host outdoor events in the summer, as well as
Construction is on track for the $250 million Adelaide Pointe project that a Muskegon couple is developing on Muskegon Lake. Site plans call for a marina, 55unit condominium building, mixed-use retail and event space, a 125-room hotel, and public access to the lake by way of bike trails, greenspace and a public fishing pier. The marina portion of the project is expected to be complete for boaters by April. The mixed-use retail and event space will include Muskegon Brewing Co., a Brooke Marine store and Adelaide Events. Emily Leestma, who is co-developing the project with husband Ryan Leestma, said roughly a dozen inquiries have come in from people interested in booking the 250-capacity event center. “We’ve learned there is a need for more event space in Muskegon, especially event space with a view,” Emily Leestma said. “I’m hoping to capitalize on that market.” As well, tenants are set to move into the 55-unit luxury condominium building in early July 2024. So far, half of the units’ sales value have been sold, Ryan Leestma said. “If things continue to go well, we’ll probably look at spinning up another condo building in 2025 as
Turo usage for pickups and returns at the Grand Rapids airport is allowed at the short-term garage, long-term garage, long-term East and North lots and economy lot. The designated lane for Uber, Lyft and other transportation network companies can be used with Turo for drop offs only. According to Turo’s agreement guidelines, Turo hosts and riders are prohibited from picking up or dropping off the car curbside, and Turo will not cover parking costs at the airport. While the service aims to offer a cheaper alternative to traditional rental cars, a bill package proposed in the state Legislature in 2021 would have imposed taxes and regulations on peer-to-peer car sharing. The bill package failed to advance past the committee process. Bill opponents pointed to in-
creased costs and the undercutting of services like Turo as primary reasons for criticism. “We’re paying sales tax on the vehicles. We’re paying income tax on the earnings from the vehicles. And now they’re wanting to layer in another tax,” Bill Huffhine, a Rochester Hills resident who became a Turo host in 2018, told Crain’s Detroit at the time. Critics of the legislation also raised concerns that the bills would jeopardize airport agreements for peer-to-peer car sharing if such agreements were designed similarly to traditional car rental agreements. Bill supporters, including large car rental companies, claim a state regulatory framework is necessary to govern insurance, protections for consumers, taxation and other issues related to private car sharing.
well,” Ryan Leestma said. The planned 125-room hotel is also included in later construction phases of the project.
recruit new people, and promote our brand to our customers and the community.”
American Seating relocation Location: 1040 40th St. SE, Grand Rapids Architect: Ghafari Associates Construction manager: First Companies Inc. Cost: $12 million Completion: Second quarter of 2024 Developer: American Seating Co. American Seating Co. is relocating its offices and manufacturing operations from its longtime headquarters on the city’s west side to former Steelcase campus property on the far south side. The industrial remodel at 1040 40th St. SE calls for demolishing a small office space on the north end of the building, renovating the parking lot and remodeling the inside of the building to add a mezzanine for office and support space. “Staying right here in this city, where we were founded 137 years ago, is so important to us,” American Seating Chairman Edward Clark told Crain’s Grand Rapids in a statement. “When we learned of the facility on the southeast side, and when we saw the benefits of its location as well as its potential, we knew we’d found our new home. We’re proud to continue our legacy in Grand Rapids and excited about our future here.” American Seating anticipates the move will attract a larger labor pool, and the company is working to hire more workers ahead of the move. The new location was desirable partly for its location next to U.S 131 and M-6, rail lines and the Gerald R. Ford International Airport. “This new space is such a cool step in our legacy, and our employees are excited about the new location,” American Seating Director of Human Resources Tasha Wright said in a statement. “It will be a bright, inclusive place of interaction and engagement that will support our team, help us to
The Silva Location: 975 Ottawa Ave. NW, Grand Rapids Architect: Integrated Architecture LLC and Kathryn Chaplow for interior design Construction manager: Rockford Construction Cost: $15 million Completion: 2024 Developer: Mark Secchia Pre-construction work is underway at the former Riverfront Fitness Center at 975 Ottawa Ave. NW to fully renovate the 50,000-squarefoot building into Mark Secchia’s vision for a bocce ball entertainment center with an indoor parking deck, restaurant and bar. “We’re calling this ‘dinner-tainment,’ because it’s more than eating and drinking,” Secchia said. “We’re setting this up so people can spend hours here playing darts, pool and bocce ball as well as having dinner. We’re really trying to be unique and different.” Secchia is taking some inspiration for the Silva project from Tootsie Van Kelly’s, a club founded by his late father, Peter Secchia. Tootsie’s operated until the mid1990s in the Amway Grand Plaza. “When someone comes to town and you want to take them to a unique experience, I think Grand Rapids is struggling a little bit in that area,” Secchia said. “There is not a whole lot right now in that realm.” The Grand Rapids Planning Commission is expected to consider the project in the first couple months of 2024. The goal is for the bar and restaurant to be completed by the end of the summer, then the bocce ball courts are expected to be completed six months after, and the event center would take an additional six months, Secchia said. Secchia has not finalized the restaurant menu, but he plans to include throwback items from former restaurants in the area.
January 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 15
RESTAURANTS
ruary. The menu features Caribbean flavors “like your grandma made,” including stuffed plantains, tacos, burritos, salads, steak and chicken with rice, beans and fruit on the side, Banks told Crain’s Grand Rapids Business.
From Page 3
The location was slated to open Jan. 1 in the Ledyard Building. Jones, a certified nutritionist, started Rev in 2021 and hopes her storefront will create a luxury space that celebrates fruits and vegetables.
Has Heart Coffee Shop, 22 Sheldon Ave. NE
Silva, 975 Ottawa Ave. NW Mark Secchia has big plans for the former Riverfront Fitness Center, where he’s opening Silva, an entertainment venue featuring a restaurant, bar, private event space and state-of-the-art bocce courts. The restaurant portion of the venue, slated to open in early summer 2024, will offer organized events and indoor games alongside an “eclectic” menu, according to its website. Big Mini Putt Club, 70 Ionia Ave. SW Big Mini Putt Club, an indoor mini golf course and bar, is opening a downtown Grand Rapids location in summer 2024. The location will seat 250 customers for drinks and nine holes of golf, according to a report by media partner WOOD TV-8. This is Chicago-based Big Mini Putt Club’s third location.
Construction continues on Mark Secchia’s vision for a “dinnertainment” venue in Grand Rapids. | KATE CARLSON
Sip Shine, 401 Stocking Ave. NW Grand Rapids-based moonshine and canned cocktail marketer Sip Shine is building its first tasting room at the former Harmony Hall building on Stocking Avenue. The project, expected to finish construction in spring 2024, will offer a tasting room and restaurant featuring daily live music and a rooftop bar available to rent for private events. Sip Shine also plans to use its parking lot to host outdoor events over the summer, according to experience director Dale Kivinen.
Recent openings
ar features a cocktail lounge, dining space and private event space, all with unique historic accents that nod to the building’s history. The restaurant offers “early American” fare, Winks previously told Crain’s Grand Rapids Business. Daisies Place, 15 Ionia Ave. SW, Suite 140 Daisies Place opened on Aug. 20, featuring breakfast, lunch and “day parties” for customers looking for the feel of a night out without the late hours. Karmin Dixon-Kyle operates the restaurant, which offers southern-style fare and mocktails.
Scholar Restaurant, 9 and 11 Ionia Ave. SW
Caribbean Bite, 122 Oakes St. SW, Suite 110
The owners of the Win Tavern 33 in Jenison are planning a new restaurant and bar at the former location of Matrix Wine Cellars and Matrix Construction. Tavern 59, doing business as The Firebird, will seat 118 guests and serve traditional American fare, specializing in Philly cheesesteaks, a late-night favorite.
Scholar, a project two years in the making, opened on Oct. 19. Led by Michael Winks, president of lending and retail banking at Northpointe Bank, the three-story restaurant fills the space formerly occupied by longtime Grand Rapids landmark J. Gardella’s Tavern. A cozy, upscale bar and eatery, Schol-
New restaurant Caribbean Bite opened in early September, offering Puerto Rican and Dominican flavors in downtown Grand Rapids at the Studio Park development. The restaurant is owner Tony Banks’ second Caribbean Bite to open, following the original concept in Rivertown Mall in Feb-
M&A
executives and advisers responding to Dykema recent survey, 52% expect an increase in deals valued at $100 million or less, and 36% expect no change. In the middle market for deals of $100 million to $1 billion, 43% percent of respondents expect greater deal flow in 2024, and 41% expect no change. By comparison, 37% of respondents believe that mega-deal activity will increase and 40% expect no change. The steady rise in interest rates and inflation drove the greater use of alternative methods to finance deals. Seller notes, earnouts, third-party equity investors and rollover equity have been used more frequently in putting deals together, according to the results of Dykema’s survey. One-third of respondents said they “sometimes” used seller financing in the last year to finance deals and 35% used it “often.” Another 8% “always” used seller financing. “Alternative financing methods have become more prominent over the past year and, in many cases, have been critical to getting deals done,” DeHondt said. “Given the tight bank lending environment, buyers’ ability to find and use alternative funding methods, I think that really helped drive the market in 2023 and we expect that will continue in 2024.”
Cautious optimism ahead
The Firebird, 59 Commerce Ave. SW
From Page 3
“When you look at the statistics from 2023 being a down year, when you really dig in, it looks like a down year because the last two (prior) years there’s been soaring M&A deal volume. But when you look at what types of transactions were actually down in 2023, it’s the large deals. You don’t see that same amount of decline in deal volume when you look at the smaller deals.” The move toward smaller deals is occurring among both financial and strategic buyers, he said. Strategic buyers are completing smaller add-on acquisitions or deals to build their existing business platforms, while financial buyers pursue transactions to deploy their capital. “Sometimes, you can do smaller deals without necessarily needing financing if you’re a strategic with a lot of cash,” DeHondt said.
Alternative financing needs Results in the Dykema outlook survey show that expectations for deal volume over the next 12 months were highest for middle and small market transactions. Of the more than 260 corporate
16 | CRAIN’S GRAND RAPIDS BUSINESS | January 8, 2024
Overall, results from the 2023 Dykema outlook survey suggest the M&A market should improve in the New Year. Business leaders now anticipate “a steady deal market in the year ahead,” according to Dykema, which noted that “soaring deal volume of 2022 has wound down by almost a third” in the past year. In 2023, “survey respondents have settled into a slightly quieter market, in which M&A players are pursuing fewer deals and less frequently rushing to capture hot targets,” according to a summary of the survey results. Across all deal size categories, 57% of survey respondents anticipate a stronger market next year and one-quarter expect no significant change. The other 18% expect M&A activity to weaken over the next 12 months. DeHondt describes dealmakers as “cautiously optimistic” about the 2024 M&A market. “What we and what our survey indicates, the next year will continue to be much like 2023, maybe somewhat stronger than 2023, but that is just going to remain to be seen on what happens to inflation, what happens with interest rates, what happens with general economic conditions,” he said. Inflation, high interest rates, the
Nonprofit organization Has Heart opened on Nov. 13, offering coffee and pastries in Grand Rapids’ Memorial Building at Veterans Memorial Park. The coffee shop, originally announced in 2020, is led by co-founders Michael Hyacinthe and Tyler Way, who want to use their individual passions for veteran support and art to create a space for veterans to meet in a creative community.
Permanent closures Wahlburgers, 10 Ionia Avenue NW After less than two years in business, Grand Rapids’ Wahlburgers location closed its doors in early August. The fast-casual burger restaurant opened in mid-2021 and was located in the Residence Inn by Marriott at 10 Ionia Avenue NW. Recently, nearby restaurant Social Misfits announced a new pizza concept, The Foolery, was scheduled to open in the space in late December. Malamiah Juice Bar and Eatery, 122 Oakes St. SW, Suite 110
ah opened in 2013, serving fresh juice, juice cleanses and smoothies. Eddie told Crain’s Grand Rapids Business it was “hard to bounce back” following the pandemic and its effect on downtown traffic and business costs. The Studio Park location is now home to Caribbean Bite. Freshii, 146 Monroe Center St. NW, Suite 160 McKay Tower lunch spot Freshii closed in November after 10 years in business serving fast-casual health food. Franchisee Nathan Ashcraft noted franchise concerns, including the sale of the franchise and pending price increases, and fewer lunchtime customers as contributing factors in his decision to close the business. Slow’s Bar BQ, 435 Ionia Ave. SW Slows Bar BQ, one of the Grand Rapids Downtown Market’s original tenants that opened its doors in 2015, closed in early October, citing an inability to fully recover from the COVID-19 pandemic. The barbecue restaurant, part of a Detroit-based company, has retained its locations on the east side of the state. Rocky’s Bar and Grill, 633 Ottawa Ave. NW
The locally-owned juice bar closed its Studio Park and David D. Hunting YMCA locations on June 30 and announced the discontinuation of its wholesale juice brand. Owned by Jermale Eddie, Malami-
Rocky’s Bar and Grill, a popular bar in Grand Rapids’ Monroe North business district, closed abruptly in mid-December after it was purchased by Corewell Health, one of a series of acquisitions as the health system develops a new office park. The bar regularly featured local live music events.
economy, and the availability of quality acquisition targets and capital ranked as the top obstacles to deals in both the past year and for the next 12 months. As interest rate hikes end and rates start to come down, S&P Global expects activity to increase in 2024. “M&A activity is not expected to skyrocket anytime soon, but it should start to pick up. The extremely small number of transactions in 2023 will make year-overyear comps in 2024 easy to surpass,” according to a recent S&P Global M&A outlook. “Large deals will continue to face hurdles, especially in the U.S. where antitrust concerns have been a focus of regulators. Still, an end to central banks’ rate-hiking cycles, along with greater economic clarity, would lead to more transactions.” On Dec. 13, the Federal Open Market Committee (FOMC) decided to maintain the benchmark federal funds rate at its present level of 5.25% to 5.5%. The decision followed a rapid rise in interest rates since 2022 to ward off high inflation. Economists generally expect that the Fed will begin to reduce interest rates in 2024. In a briefing after the Fed’s December meeting, PNC Bank economists said the FOMC “is signaling that the end of the tightening cycle is likely here,” al-
though the “committee is maintaining a tightening bias for now.” PNC Bank now expects the Fed to make three quarter-point cuts in the federal funds rate in the second half of 2024. In an updated outlook last month, Federal Reserve governors and bank presidents also projected a median 1.4% Real GDP growth for the U.S. in 2024, followed by 1.8% growth in 2025. In the M&A market, half of survey respondents to the Dykema survey reported in September that they feel “positive” about the U.S. economy over the next 12 months and one-third were neutral. The remaining 17% were negative. “As is the case with the M&A market, our respondents expect more of the same from the broader U.S. economy heading into 2024,” the survey report states. Energy, financial services, health care, technology and telecom, and industrial and manufacturing were the top sectors for expected M&A activity in 2024, according to the Dykema survey. The automotive sector, which ranked third a year ago for expected activity, declined to 10th. DeHondt attributes that “considerable” change partly to a great deal of uncertainty about looming strikes against automakers at the time Dykema conducted the survey in August.
RIVERFRONT
Cooper Companies Inc. completed Grand View Place, a 68-unit affordable apartment complex on 3 acres at 936 Front Ave. NW, in 2018. The project included a riverfront easement in hopes of eventually connecting to a riverside trail system. “I think that’s a great move on the part of the city,” Craig Patterson, senior vice president of development for Woda Cooper, said of the rezoning plan. “It’s a major plus for the west bank,” he added. “I think that the area of Front Street from Sixth Street Bridge up to Leonard definitely needs rezoning to stimulate more development.” He added that the removal of parking minimum requirements
will help developers, as well. Patterson said if this zoning change takes effect, Woda Cooper will be “looking long and hard” at new development opportunities in the subject area. David Smies, associate broker with NAI Wisinski of West Michigan, co-owns two parcels in the area, 1000 and 1010 Front Ave. NW, with three other undisclosed partners. The property at 1000 Front Ave. houses Pinnacle Construction Group, while 1010 Front is the food safety research and development lab for New Orleans, La.-based Intralox LLC. Smies said he was not aware of the proposed zoning change until recently, but said that he was happy to hear of it.
“We bought (those properties) 20 years ago with the idea that something would happen long term (in the area), and we’re happy about this,” he said. “I don’t know what the long-term plan is (for) what the city wants to do. But higher (buildings), that sounds good to me.” Grand Rapids Planning Director Kristin Turkelson said during last month’s planning meeting that even though this zoning district will likely be reevaluated as part of the ongoing master plan updates, her department initiated this request for faster action, based on development trends underway in the area and the urgent need for housing in the city. The planning department’s idea
to rezone this corridor as part of the city center also was prompted in part by developers Joe Elias’ and Ryan Schmidt’s proposal last January to build a 10-story residential tower at two vacant parcels at 260 and 282 Leonard St. NW. Before proposing the zoning change, Turkelson said her team worked to identify existing uses of the properties in that 30-acre stretch to ensure that existing businesses would still conform under a zoning change, and they determined they would. “That was obviously a critical piece, to understand who was there, what they were doing and how this could potentially impact them,” she said. Under the proposed zoning change, light industrial uses would still be allowed, and could expand, in the area but would require special land use approval, as is the case now. As well, heavy industrial uses such as material recovery and recycling would not be permitted. Patterson, of Woda Cooper, said he appreciates that the city is willing to consider strategies to streamline the number of steps it takes to bring new developments online. “The planning commission and the city of Grand Rapids staff, they’re really thinking ahead,” he said. “That’s one of the reasons why we want to keep coming back and investing in Grand Rapids, because they understand development and the needs of due diligence and timelines and all that, which is really positive. So we support this. We think it’s a real positive.”
time up for other aspects of patient care?” said Leann Lahmann, a virtual registered nurse at Trinity Health Grand Rapids. “They have a partner now. There’s somebody else that can be their right hand.” Pena described a recent situation where a virtual nurse did not like how a patient looked. She asked the two nursing assistants in the room who were adjusting the patient in bed to check his blood pressure. He was hypotensive, or had abnormally low blood pressure. In another instance, a virtual nurse checking on a patient noticed they were having a seizure. As well, Lahmann noted a situation where a monitor alarm was going off. In checking on the patient virtually, she noticed the blood oxygen sensor had fallen off their finger. She talked with the patient about how to put it back on so the alarm would stop, avoiding the need for a nurse or assistant on the floor to stop what they were doing to assist a patient. On occasion, especially in the senior care unit, a patient just wants somebody to talk to, said Lahmann, who’s worked as a nurse at Trinity Health Grand Rapids for more than nine years. “I’ve had patients where they push the virtual nurse button and they’re like, ‘Well, my family left and I don’t have anybody to talk to.’ I said, ‘I can talk to you. What do you want to talk about?’” she said. “I can still have a conversation with them and learn about their grandkids or what they have going on in their life. I’m just do-
ing it from behind a screen, versus sitting there in the room.” When a patient hits their call button, a Virtual Connected Care nurse quickly appears on the television in the room and views the patient through a high-resolution camera or can talk to them through a special telephone at the bedside. Virtual nurses have access to a patient’s medical records and data from medical equipment that monitors their vital signs. The camera can zoom in on a patient when checking their condition. If there’s a problem that needs handling in person, the virtual nurse notifies the bedside nurse. In some instances, and because a virtual nurse has already assessed a situation, the bedside nurses can first get the supplies or equipment they need before going into a patient room, improving workflow and efficiency, Pena said. “Instead of going in, assessing, coming back out, going and getting the supplies, the nurse now is going into the room very ready and prepared for what needs to happen,” said Pena, who describes Virtual Connected Care as a “care partner with the bedside nurses” and “an extension of that bedside nurse.” “Over 40% of a bedside nurse’s time often isn’t spent necessarily doing hands-on care. If there’s pieces of that that the virtual nurses can do, that is just going to help our bedside nurse and, ultimately, patient care,” she said. Trinity Health now has more than 1,000 beds covered through
the Virtual Connected Care model, Pena said. Livonia-based Trinity Health has so far deployed Virtual Connected Care in 50 patient units in 19 hospitals in 10 states. “This is a bold step toward revolutionizing the nursing practice for our patients and nursing colleagues,” said Dr. Matt Biersack, president at Trinity Health Grand Rapids. “By confronting the imminent challenges nurses face as clinicians through creativity and ingenuity, we enhance care delivery and bolster job satisfaction — paving the way for the nurses of tomorrow.” A virtual nurse as well can help bedside nurses better prioritize their workflows, Pena said. Nurses assigned to the virtual care team do rounds with the bedside nurses at the beginning of their shift to learn what the patient needs and the tasks they can take on. Virtual nurses are all experienced, licensed RNs and must work at least eight years in an acute-care setting to work on a vir-
tual team. The nine nurses at the Lacks Cancer Center who now work in Virtual Connected Care have more than 174 years of combined experience, Pena said. Deploying the system reflects the need to embrace new approaches to manage the staffing shortage, as well as the emergence of technologies that are designed to support patient care, Pena said. As hospitals cope with nurses leaving the profession to retire, or because of burnout from heavy workloads from the staffing shortage, their replacements often are not as seasoned, Pena said. The support of virtual nurses who have deep experience can help to overcome that knowledge gap, she said. “We have a lot more novice nurses. Our landscape has changed quite a bit in the last four or five years,” Pena said. “Tenured nurses, those with decades of experience who would like a change, can put their knowledge and skillset to use for the rest of the care team from a virtual setting.”
From Page 1
The zoning change, which is expected to go before the city commission early this year, also would remove requirements for parking minimums at those 22 parcels. Tadlock said the city’s effort to rezone this area before the master plan process is finished “won’t come from left field” to anyone who’s been part of the city’s longterm planning efforts. He added that efforts to add density in and around downtown by increasing building heights is “overdue” as thousands of new housing units are needed in the city to meet demand. “Grand Rapids needs to come into the 21st century,” said Tadlock, who serves as assistant general manager for ASM Global, which manages the downtown venues DeVos Place and Van Andel Arena. “You’ve got to have more density downtown.” Paul Hendricks, owner and CEO of Creston Industrial Sales at 1150 Front Ave. NW, said during the meeting’s public comment period that he is “fully in support” of the plan to rezone the area. He said he believes the opportunity to build higher will spur the type of residential development that activates the riverfront. “I think that that makes a ton of sense, and overall, it’s the direction of the neighborhood,” he said. The corridor already has one successful housing development: Columbus, Ohio-based Woda
NURSES From Page 1
“We know that there’s a pretty big crisis in nursing in terms of the nursing shortage,” said Michelle Pena, chief nursing officer at Trinity Health Grand Rapids. “This is really a new innovative model that leverages technology to support our nurses at the bedside caring for the sickest patients.” In deploying the technology, Trinity Health also hopes to improve nurse retention rates by providing additional support to direct care staff “because they have a care partner that can help them day to day,” Pena said. The health system began using Virtual Connected Care in a 2022 pilot project at Trinity Health Oakland. The system launched in November in Ann Arbor at the same time as in Grand Rapids, where it’s used on a 32-bed unit for senior care and 42-bed oncology unit at the Lacks Cancer Center. Trinity Health Muskegon launches the remote monitoring technology this month. Under the model, a three-person care team consists of the nurses on the hospital floor, a virtual nurse, and a nursing assistant. Virtual nurses can initially respond when a patient in bed needs assistance. The goal is to support the bedside nurses and reduce their workload by taking on certain tasks. “One of my big responsibilities is: What tasks can I offload for the bedside nurses to help free their
Woda Cooper Companies Inc. completed Grand View Place, a 68-unit affordable apartment complex on 3 acres at 936 Front Ave. NW, in 2018. | RACHEL WATSON
January 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 17
THE CONVERSATION
Contract for prominent downtown project lifts woman-owned landscaping startup Jina Rockwell is the president of Rockwell Earthworks LLC, a commercial and residential landscaping firm in Lowell that she founded in 2020. Rockwell is working to build up her business and double the firm’s team of eight people, especially in light of the company’s recent $460,000 contract to provide landscaping services for the Lyon Square project underway in downtown Grand Rapids. The project will redesign a riverfront parcel between DeVos Place and the Amway Grand Plaza hotel into a pedestrian-focused park and plaza that local officials have called ‘the first domino’ for broader Grand River activation. Rockwell is from Ohio and has experience across several sectors, including fashion and retail as well as automotive, aerospace and industrial. When she moved to Michigan, Rockwell worked at Ford Motor Co. on the east side of the state before eventually moving to West Michigan. | By Kate Carlson How was the experience of founding Rockwell Earthworks? I had done little side projects with my family and friends. When I first started Rockwell Earthworks, it was slow — I’m not even going to lie about that. The first couple of months and first year was pretty slow. I worked on getting kind of a backlog to move into 2021, so we really started ramping up during that time. The interest in getting homes and people’s living environments up to snuff during the pandemic, I followed that trend. That’s where my marketing and research background really kind of came into play. How does your experience working across multiple industries help you lead a landscaping firm? I have a background in fashion, that was my first job. I had positions with JCPenney in brand management. The way JCPenney was developed, their brand management had a lot to do with design and color and things of that nature, so I’ve never really lost it. That just added fuel to my fascination with colors and growing things. Are there any common trends you’re noticing recently in landscape designs your clients are asking for? I have been seeing more of a trend in native plants and not always going for the structured look. Homeowners are embracing that natural pollinators are not as prevalent as they used to be so they’re putting in natural plants that encourage pollination. As for their lawns, people don’t really want to mow or want the work and rigor of having someone come in and mow their lawn all the time. People are looking at different types of low-mow or no-mow alternatives like clover lawns and other alternatives to free up their time. Americans work longer hours than any other country. During the pandemic, we had a chance to step back and there was this epiphany for many people that was translating to not wanting to spend every weekend working to get a manicured lawn. What did it mean to you and
Jina Rockwell, president of Rockwell Earthworks LLC.
CrainsGrandRapids.com President and CEO KC Crain Group publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com Executive editor Mickey Ciokajlo, mickey.ciokajlo@crain.com Editor Joe Boomgaard, joe.boomgaard@crain.com Managing editor Andy Balaskovitz, andy.balaskovitz@crain.com Special projects editor Tim Gortsema, tim.gortsema@crain.com Director of audience and engagement Elizabeth Couch, elizabeth.couch@crain.com Audience engagement editor Matthew Pollock, matthew.pollock@crain.com Creative director Thomas J. Linden, tlinden@crain.com Associate crative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Senior digital news designer Stephanie Swearngin Notables coordinator Ashley Maahs REPORTERS Kate Carlson, real estate, kate.carlson@crain.com Jack Grieve, audience engagement, jack.grieve@crain.com Abby Poirier, restaurants, retail and agribusiness, abigail.poirier@crain.com Mark Sanchez, health care and finance, mark.sanchez@crain.com Kayleigh Van Wyk, manufacturing, technology and law, kayleigh.vanwyk@crain.com Rachel Watson, residential real estate, insurance and tourism, rachel.watson@crain.com Danielle Nelson, research and data, danielle.nelson@crain.com ADVERTISING Senior vice president of sales Susan Jacobs, susan.jacobs@crain.com Advertising & event sales director Jill May, jill.may@crain.com Account executives Shelly Keel, shelly.keel@crain.com Jennifer Maksimowski, jennifer.maksimowski@crain.com Michigan events director Samantha Flowers, samantha.flowers@crain.com Marketing and events coordinator Matthew Chaffee, matthew.chaffee@crain.com People on the Move manager Debora Stein, dstein@crain.com Classified sales Suzanne Janik, sjanik@crain.com Sales assistant Rachel Smith Inside sales Tawni Sharp
your firm to land the Lyon Square project? Let’s just say that I’m absolutely floored and excited about the opportunity. It means that we get to grow but we can also have a foothold in Grand Rapids. We’re going to be able to reach back and help those who want to be a part of our team. Make no mistake, I’m a small guy and being able to get invited to participate and then help others is really important to our mission and what we want to do. (Lyon Square) will be a place everyone can enjoy and fall in love with being outdoors, especially given how much we have been holed up. That’s my vision, to have a place where everyone feels as if they belong. My company has to deliver that, and that means ramping up, scaling up, and hitting those deadlines regardless of when we’re handed the baton. It truly is a handoff and ramping up. If somebody falls behind I have to know so I can either redeploy or get some more people in to help bring that to fruition. How does landscaping help shape projects? What do companies like yours add to those developments? I like to view it as icing on the cake. We’re the finishers. We
18 | CRAIN’S GRAND RAPIDS BUSINESS | January 8, 2024
have to understand what the vision of this building or the structure is, and we come in after everything is said and done and we clean up and finish and those are the things that people see. We have to be in early so we understand the project, but we’re also on the tail end, so if a project goes beyond what is planned, it affects us the most. You are one of the very few women and people of color in West Michigan leading a firm in the development/ construction space. Can you talk about that dynamic and generally how you’re breaking into the region as a new firm? This is a male-dominated field in every aspect of the word, which is not an unfamiliar ground given my professional history. What I have experienced is that there is a familial element to West Michigan and gaining contracts. It’s who knows your name and who is comfortable with you. And because we’re the new kid on the block, that hasn’t happened yet. It has been challenging. It’s about going to the meetings, and even finding out about the meetings, truth be told. It’s such a fraternity. Even to find out (Lyon Square) was happening, I had to do a lot of homework. I’ve
been fortunate that I’ve connected with Construction Allies in Action to just help in identifying and knowing when bidding is taking place. I’ve done the hard work of trying to get our name out there and create those relationships and ensuring the work that we do is approved. If we operate in excellence, that’s going to ease the angst that goes with somebody that people don’t know. What is your mission with Rockwell Earthworks, and where do you hope to take your business in the future? I want to be the premier employer and I’m looking for people who just enjoy the outdoors and take pride in their work. I want to be the place where people say, ‘Hey, they treat their people well, and it’s a good place to work.’ I want to make this an employee-owned company. That is my vision because of all the nonsense that I experienced in corporate America. As soon as I get those employees who show they want to continuously improve their skill sets, those are the people that we want to be part of this company so it will grow as an employee-owned company. We are not there yet, but we have a good core of employees right now.
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