Crain's Grand Rapids Business, Sept 18, 2023

Holland builds on legacy of global innovation

New business incubator will spark high-tech startups

By Mark Sanchez

TREATED ‘LIKE A COKE DEALER’: CANNABIS WORKERS SUFFER

Employees have trouble with mortgages, loans in legally murky industry

By Dustin Walsh

Vixen Yerock earned a degree in plant molecular biology from the Rochester Institute of Technology in New York. She’d spent the last 15 years, though, as a manufacturing engineer specializing in process e ciencies.

But in early 2022, Yerock was given an opportunity to return to working with plants after being hired by one of Michigan’s largest marijuana rms, Common

Citizen. Accepting the job meant moving from Oklahoma to the Marshall area where Common Citizen operates its 200,000-square-foot cultivation facility.

Yerock secured a home loan from an FDIC-approved bank and was set to close on a new home in March — that is, before the bank discovered she was soon to receive paychecks from a major weed supplier. Gateway Bank, which underwrote the

mortgage, noti ed Yerock two weeks before closing on the home that they would not service her loan due to who was signing her paycheck.

Yerock worked quickly to nd a new lender, a credit union out of Kalamazoo, and was able to close on the house. But not without excessive cost.

“When we secured the mortgage (through Gateway), that was the best interest rates we’d seen in a long time,” Yerock said. “We were left to pivot and quickly found a new bank, but with a

Holland-area companies have created innovations that a ect the daily lives of millions of people, ranging from the cubicles and ergonomic chairs they use in their o ces to the cupholders, center consoles and auto-dimming rearview mirrors in the vehicles they drive on their commutes.

In a bid to keep that innovative spirit alive for generations to come, the community is going all-in on the formation of a new business incubator.

When it opens in a little more than a year, the $15.3 million Next Center in downtown Holland will provide space for high-tech, high-

growth business startups and a new generation of entrepreneurs seeking to commercialize an innovation. e three-story incubator and innovation center also will o er space for second-stage companies and serve as the headquarters for Lakeshore Advantage, the economic development

See HOLLAND on Page 41

SEE RELATED STORY Lakeshore economy is bolstered by an unusual trifecta, PAGE 28

CRC

lists Grand Rapids headquarters for $7.35M

Denomination looking to move into smaller, more ef cient space

By Kate Carlson

e Christian Reformed Church in North America’s Grand Rapids o ce building is on the market for $7.35 million, following a vote earlier this month from the denomination’s U.S. ministry board.

e Christian Reformed Church in North America’s o ces at 1700 28th St. SE in Grand Rapids have served the denomination’s U.S. operation for more than 65 years. e decision to sell the 130,000-square-

foot building is based on the rising cost of maintaining the aging infrastructure, fewer people working in the o ce, and a need for a new ofce design to accommodate a more exible post-COVID-19 working environment, said Dan DeKam, director of U.S. ministry operations.

e building serves as o ces for the denomination’s leadership, and houses other organizations run by the CRCNA. e building also is a hub for administrative services for the denomination’s 120 missionaries, DeKam said.

“ e pandemic forced sta into di erent ways of working and,

See CRC on Page 41

Thousands of marijuana employees are facing precarious personal banking relationships due to their employment. | NIC ANTAYA

Renderings for a new downtown Holland incubator will provide space for high-tech, high-growth business startups. | COURTESY OF LAKESHORE ADVANTAGE

SEE RELATED STORY Cannabis industry appears closer to getting access to banking, PAGE 27

DUSTIN WALSH

Have you heard?

$2 .6 MILLION

in incentives was awarded to Michigan manufacturers for participating in demand response last year.

Together with hundreds of other businesses across the state, they also saved 200MW of energy — as much as a small power plant generates in a year! One less power plant makes a huge environmental impact for Michigan.

City leaves riverfront property for

new site move frees up space for more redevelopment

By Kate Carlson

The city of Grand Rapids recently purchased an industrial property to relocate non-emergency Fire Department operations away from the Grand River, a move that could free up the riverfront property for redevelopment and more public use.

Report: State’s child care shortage costs economy $2.9B

employers losing $2.3 billion from related employee turnover, absenteeism

By Rachel Watson

Michigan’s child care shortage results in a loss of $2.88 billion in economic activity for the state each year.

That’s according to a report the U.S. Chamber of Commerce Foundation released earlier this month that tallies the ways in which inadequate child care hurts Michigan’s economy, including driving down the labor force participation rate, causing worker absenteeism and curbing the state’s gross domestic product output.

The U.S. Chamber of Commerce Foundation worked in

partnership with the state’s Early Childhood Investment Corporation, the Michigan Chamber of Commerce and the Grand Rapids Area Chamber of Commerce to produce the 52-page report, “Untapped Potential: How Childcare Impacts Michigan’s Workforce and Economy.” The report includes data from a survey of 501 Michigan parents of children ages 6 and younger conducted between March and April 2023.

As part of the overall $2.88 billion loss, the state government misses an estimated $576 million

The city acquired 850 Pannell St. NW for $1.9 million on Aug. 16, according to property records. The city bought the 9-acre industrial property from Called Your Bluff LLC, which is affiliated with Holland-based Louis Padnos Iron and Metal Co. The site contains more than 96,000 square feet of facilities, and formerly housed Enterprise Iron and Metal Inc., a scrap metal recycling company that permanently closed in 2017.

The property deal will support the city’s relocation of non-emergency fire operations from 1101 Monroe Ave. NW along the east side of the Grand River, just south of Leonard Street.

“We are looking at the end of 2024 or early 2025 to be out of our current training facility that also houses some spare equipment and our homeless outreach team,” said Grand Rapids Fire Chief Brad Brown. “We are going to be constructing multiple buildings at 850 Pannell, and it’s going to be phased.”

The City Commission on April 11 approved a purchase agreement to buy the Pannell Street property on the city’s northwest side, near the intersection of Ann Street and Alpine Avenue. Relocating to Pannell Street also will

Choo Choo Grill for sale as owners head for retirement

purchase is not contingent on keeping restaurant open

By Kate Carlson

When Rick Mack’s father-in-law approached him 26 years ago to ask if he wanted to take over the Choo Choo Grill, Mack had no idea at the time that he and his wife, Darcie, would run the community staple for more than a quarter-century.

The couple is now looking toward retirement, and recently put the iconic red restaurant and surrounding property on the market for $1.5 million. The listing for the

19,166-square-foot, triangular-shaped property on the corner of Plainfield Avenue and Leonard Street is bordered on the west by train tracks, and includes the small Choo Choo Grill building at 1209 Plainfield Ave. NE, as well as a tattoo parlor in the retail building at 1219 Plainfield Ave. NE.

While the restaurant had been in the family for 66 years, Rick Mack said it was time for retirement.

“I’m going to be 70 in November and have 17 grandchildren,” Mack said. “It’s time to look at the

next phase of my life.”

The breakfast and lunch joint — which specializes in reasonably priced, diner-style food — has gained many regulars over the years, Mack said. Most of the menu items, which include burgers, sandwiches, onion rings and french fries, are less than $10.

Mack said an ideal situation would involve a potential buyer taking over and continuing to operate the restaurant, though it

A report the U.S. Chamber of Commerce Foundation released earlier this month found that the state government misses an estimated $576 million annually in tax revenues because of child care issues, while employers lose out on $2.3 billion from child care-related employee turnover and absenteeism. | FILe pHOtO COUrteSY OF FIrSt StepS KeNt

Funding remains a problem for child care facilities and for Michigan families despite an infusion of funds during the COVID-19 pandemic. | NIC ANtAYA See RIVERFRONT on Page

VC raises plunged in ’22 despite steady deal flow

Overall, report shows strength within the ecosystem

By Mark Sanchez

The sharp decline in capital that Michigan venture capital firms raised in 2022 illustrates the tough environment that the industry faced as the U.S. economy slowed and interest rates rose.

An annual report that otherwise details a solid year for venture capital in Michigan shows that just two Michigan-based firms raised a combined $25 million in 2022. That’s by far the lowest level going back at least a decade and compares to the $140 million that 13 Michigan-based venture capital firms raised in 2021, according to a report released this month by the Michigan Venture Capital Association.

Dan Kidle, managing partner at Ann Arbor-based Arboretum Ventures, attributes the fundraising decline to macroeconomic factors, uncertainty and a tough year on Wall Street in 2022 that led institutional investors to pull back allocations to venture capital.

“They saw a very significant downdraft in their public market holdings and as they think about what percentage of their portfolio they want allocated to venture and private equity, they ran into a denominator problem where their entire portfolio was down because the public markets declined in early 2022,” Kidle said. “So, then the portion that they cold allocate to venture also had to come down in order for them to still be on target.”

Low interest rates before the present environment also may have contributed to “over investment” and “huge growth” in venture capital “just because people were looking for some yield and

return where they could find it, and they couldn’t generate that as easily through some of the more interest rate-dependent terms,” he said.

IPOs dried up as well in 2022, creating concerns among investors about eventually generating returns if that option remained closed for an extended period, Kidle said. He expects the venture capital fundraising environment to remain difficult.

“I think LPs got into a situation where they were committing larger amounts of capital at a more rapid pace toward venture funds in 2019, 2020 and 2021, and that we’re going to go back to a more normal cycle,” he said. “I think it’s going to continue to be a pretty tough fundraising environment for the next year.”

Arboretum Ventures in 2023 was an outlier in that environment. The firm in June closed on $268 million in investment capital for a sixth fund. Investors included health systems, payors, pension funds, endowments and family offices, and 14% of the capital for the fund came from new investors, Crain’s Detroit Business reported in June.

firms invested $1.16 billion in 164 deals involving companies in the state. That’s an increase from the $1.04 billion invested in 2021 and still the second-largest amount in the past decade, according to the MVCA report.

Deal flow declined from a record 193 investments in 2021, although 2022 was still the third-largest year in a decade for deals.

Kidle attributes the decline in deal flow partly to venture capital-backed companies opting to wait out an uncertain economic en-

Between 2013 and 2022, the amount venture capital firms in the state invested in Michigan companies grew 310% and assets under management increased 451% to $5.9 billion, reflecting the industry’s growth over a decade.

In Grand Rapids, Michigan Capital Network closed in January on $37.5 million raised toward a $50 million target for a fourth venture capital fund.

Beyond fundraising, the MVCA’s 2023 annual report shows the industry had a solid year in the state as venture capital investments declined nationally.

Michigan-based venture capital

vironment before raising a new capital round, which has persisted into 2023.

“The data showed a pretty steady year in terms of deal flow and investment activity, but I do think there was likely a dynamic of some companies that just had to delay going out to raise a round,” he said.

“A lot of companies in 2022 looked at the uncertainty in the funding

environment and then took steps to extend their current cash runway or do things to be able to delay a fund-raise until the environment had improved, and we’re still seeing that in 2023.”

Between 2013 and 2022, the amount venture capital firms in the state invested in Michigan companies grew 310% and assets under management increased 451% to $5.9 billion, reflecting the industry’s growth over a decade. Deal flow over the same period ranged from a high of 193 investments in 2021 to a low of 100 in 2016.

Michigan at the end of 2022 was home to 37 active venture capital firms, a 54% increase from the 24 in 2013.

“The state’s come a long way in the last 10, 20 years,” Kidle said. “As you look at the last 10 years, the trend and growth continues to be positive and it’s now a meaningful chunk of the economy.

“Even in a year where nationally there was a decline, we had some real staying power.”

Venture capital investing nationally declined from 18,531 deals for $345.2 billion in 2021 to 15,906 deals for $238.8 billion in 2022.

Wayne County was the top market in the state in 2022 for deal count with 38, followed by Washtenaw County’s 37 and 34 in Oak-

land County. Kent County was fourth at 21 deals.

Washtenaw County topped the state with $458.8 million in venture capital investments that local firms received last year. Wayne County ranked second at $367.6 million, followed by Oakland County at $178.9 million. Kent County ranked fourth at $68.4 million.

The data in the MVCA report for 2022 indicates that venture capital as a whole in Michigan maintained momentum as the industry nationally declined, said MVCA Executive Director Ara Topouzian.

“What the report overall shows is strength within the ecosystem,” Topouzian said. “It’s still a solid environment. It’s still a good place to do business.”

Despite that strength, Michigan still lacks adequate capital for early-stage and seed rounds for startups that require smaller amounts of capital but carry higher risk.

The number of seed rounds in Michigan last year declined from 65 in 2021 to 43, the lowest level in five years, according to MVCA data.

The MVCA and venture capital firms have for years advocated additional state investment in the industry, similar to several years ago when public funding helped spur the formation of new funds and grow venture investing in Michigan.

In May, a group of four nonprofit investment groups unveiled a proposal and urged lawmakers to approve a one-time $126 million appropriation for a fund for four nonprofit venture capital firms in the state to invest in tech-focused startup companies. Backers of the plan cited how Michigan lags other Great Lakes states in access to preseed and early-stage capital for entrepreneurs.

“That’s the one area where we need to see some increased activity,” Topouzian said. “The state needs to look at that even harder.”

Pump manufacturer unveils $11M plant expansion

PSG adds 56,000 square feet for manufacturing, offices and R&D

By Kayleigh Van Wyk

A pump and compressor manufacturer recently completed an $11 million expansion and renovation project at its Grand Rapids facility to accommodate growth and scale into new markets.

PSG Grand Rapids, a part of industrial products conglomerate Dover Corp., has reopened its Blackmer plant on Century Avenue in Grand Rapids after adding 56,000 square feet of new manufacturing, office, and research and development space.

Announced in 2021, the twophase project will create 54 new jobs. Phase one of the expansion consisted of demolition and con-

struction of a decommissioned foundry site where parts for pumps once were forged near PSG’s existing Grand Rapids facility.

The existing facility was remodeled in the second phase and now features upgraded employee amenities, such as locker rooms and break rooms.

Lara Kauchak, general manager for PSG Grand Rapids, said the campus expansion was needed as the company outgrew its machining and assembly space.

“Business has been very good over the years, and we’ve continued to grow as part of Dover, so the opportunity came to expand the site,” Kauchak said.

Since 1925, the Century Avenue facility has been the manufacturing site for Blackmer pumps, incorporating technology now used in today’s sliding vane pumps, which use a rotor with sliding vanes that draw liquid into the pumping chamber.

Blackmer was founded in 1903 in

Petoskey as Blackmer Pump, Power and Manufacturing by Robert Blackmer, who in 1899 invented the new rotary vane pump technology.

Dover purchased Blackmer in 1964, and Blackmer joined the newly formed PSG group of brands in 2008 as an independent operating company within PSG, which is headquartered in metro Chicago. Today, PSG produces pumps

and compressors used across various industrial applications, such as in the propane industry.

In addition to growing manufacturing capacity, the expansion is aimed at helping PSG scale into new markets and bring additional product lines to Grand Rapids, such as gear pump business for the oil and gas industries, Kauchak said.

“The gear business is probably one of the big pieces, and we’re seeing a big boom of that with the compressor market right now as well,” Kauchak said. “We continue to look at that as well as other industrial businesses.”

According to analysis from New York-based Polaris Market Research, the global industrial pump market was valued at $69.85 billion in 2021 and is expected to grow to more than $120 billion by 2030.

With the new building officially complete, PSG has moved most of its product lines into the new space and is working to optimize its manufacturing footprint there in the final move-in phase, according to Kauchak.

“We’re very proud to continue to grow the site here … it’s great to be in Grand Rapids,” Kauchak said.

The expansion project received a $350,000 Michigan Business Development Program performance-based grant from the state in 2021.

PSG Grand Rapids recently completed an $11 million expansion that added 56,000 square feet of manufacturing, office and R&D space. | COURtESY OF PSG GRAND RAPIDS

WE’RE HERE TO GET YOU THERE.

Whether you’re ready to get started on a career you know you’ll love or juststarting to explore options for a major, we’re here to help.

Learn hands-on in your choice of 180 degree programs crafted by our industry advisors. Work side-by-side with expert faculty who’ve worked in the fields they teach.

Let our experience and partnerships become your edge in the job market.

Learn more at ferris.edu/move-forward

Log cabin enthusiast lists custom home with U.P. touches

Structure sits on 72 acres near Fennville

By Rachel Watson

Greg Pearson brought his love of the outdoors, target shooting and log cabins to Southwest Michigan when he custom-built a home on 72 acres that he’s now selling.

Originally from the Upper Peninsula and a member of the Sault Ste. Marie Tribe of Chippewa Indians, Pearson is principal of Chicago-based environmental services company Tenesis.

He bought the rural wooded parcel in Ganges Township near Fennville in 2018 for $230,400, according to Allegan County property records. He then embarked on what would be his sixth homebuilding project to create this modern, 3,700-square-foot log cabin.

At the time of the property purchase, Pearson and his wife were primary residents of Chicago, where they raised their family. But their children were attending Michigan State University, so they wanted a closer but still remote outpost for family gatherings.

Since their kids have now graduated from college and moved out of Michigan, the Pearsons are picking up stakes and moving to Naples, Fla.

Reluctantly, they are preparing to part with their beautiful three-bedroom, three-bathroom log dwelling after listing it for $1,977,000 on Aug. 21.

Almost one of a kind

Though he’s not a builder by trade, Pearson acted as the general contractor for this home, hiring out the work in phases to different subcontractors for separate parts of the process while ensuring a unified vision.

“I find the construction process very fun — it’s very enjoyable,” he said. “It’s rewarding when it’s all finished. It’s exhausting at the same time, but … the key is to enjoy it.”

Of the homes he’s built, this is Pearson’s second log cabin. The first was designed by Hiawatha Log Homes and was located in Gould City, in the U.P.’s Mackinac County, where his maternal grandmother was born and he still has family ties. The Pearsons have since sold that cabin.

To save time and money — and for sentimental reasons — Pearson used the blueprints of the first log home to create this one, but he increased the size and made a few other modifications.

“(The Gould City cabin) had very similar acreage, it was all hard-

woods and almost the same thing,” Pearson said.

Sellers’ agent Brendin DeVisser, with Five Star Real Estate Lakeshore in Holland, said the list price chosen for this home was not based on comparable sales elsewhere, since the home is different from every other house except for its twin in the U.P.

Instead, they set the price based on the value of the acreage and labor and materials costs.

Indeed, the home is not like other log cabins on the market. For one, it’s bigger, at two stories and 3,700 square feet, with an enormous second-level deck and screened porch overlooking the yard, and a quarter-mile-long paved driveway.

Secondly, it’s got an attached three-stall garage that’s fully finished as a party space, with a large loft with a bed and living area, appealing clapboard-style walls and sparkling composite floors.

Guns and poses

The property includes ample accommodations for one of Pearson’s favorite hobbies: target shooting.

Off the garage is a room-sized gun safe, and about a one-eighth mile walk from the house on his land is a shooting range next to the north branch of the Black River.

“I am not a hunter, just a shooter,” he said.

was a puppy at the time and didn’t know what to do, so he started what he thought was playing with them, but he was puncturing them with his teeth. So the guy had to put them all down. He stuffed them, and then made different arrangements. And actually, the taxidermy guy who did the porcupines for him also did my eagles, up in Escanaba.”

Pearson said he’s interested in selling the house furnished, but that would be negotiated at additional cost to the buyer.

Garage rock

From the garage to inside the house features clean lines and lots of space.

“Every garage I’ve had has been oversized, and I don’t like to see any (clutter), … so I do way more cabinets to make sure that there’s nothing (visible),” he said.

the house,” he said.

Pearson said the buyer of the log home could potentially add a bathroom to the mezzanine to make the garage condo a full-fledged apartment.

Wood and nature galore

The house — which is 100% custom-finished — is full of costly wood imported from the north, including hickory flooring from northern Wisconsin and logs from Munising in the U.P.

There’s a hardwood bunk bed set made by a carpenter in Manistique, and a cherry table that’s part of his own collection and won’t be sold with the house.

The design elements all evoke a harmonious feeling of being in nature even while inside, from a special-ordered forest silhouette light fixture to the tabletops, cabinets, doors, lamps and backsplashes.

enjoy the rain,” he said.

A rare find

DeVisser, the broker, said it will be an “interesting process” to see who emerges with offers, as he estimates 20 or fewer buyers at this price point are looking for log homes.

It could be someone who’s been waiting for a cabin patiently but never found what they wanted. Or someone for whom money is no object, and the acreage, the expensive hardwoods, the remoteness — all of it adds to the charm.

But Pearson loves the look and grace of quality taxidermy, so he’s used it liberally in his log home decor, showcasing animals in various action poses.

As an enrolled tribal member, Pearson is among few people with the right to own taxidermied bald eagles — of which he has two.

He also has a stuffed animal moose head wall mount and a stuffed life-sized bear, as well as a few animal sculptures and a pair of taxidermied baby porcupines.

“A guy that I knew in the U.P., his dog accidentally discovered a nest of porcupines,” Pearson said. “He

Pearson said his “garage craze” started back in Illinois, where he hopped on a “garage condos” trend started by a developer friend. They’re fully weatherized structures with vehicle parking but also party space: heating, air conditioning, a living area mezzanine with TVs and a wet bar, among other features.

He was building a garage condo at his house in Illinois while overseeing the construction of this log cabin in Michigan, so he cross-pollinated some of the design ideas.

“When my kids would come back from Michigan State, they brought friends, and that’s where they would hang out so they wouldn’t tear apart

Pearson chose a floor plan that would enhance that feeling of immersion by putting the main living room, kitchen, guest room and primary suite on the second floor, about 12 feet off the ground.

“That was to give the feel that you’re in the middle of the woods, almost like you’re in a tree fort,” he said.

The roof also has several skylights for the view and for extra light.

The lower level has another bedroom, a family room with a wet bar, and it flows into the ground-level screened porch via sliding doors.

Pearson said he had all the wood in the house sprayed for mosquitoes, so the screens on the porch aren’t strictly necessary, but they’re nice to have.

“In a really good rainstorm, it’s perfect to sit under there and just

“The first pair of people that we showed it to, the first question (the Realtor) asked, and I think it was the only one, pretty much, was, ‘Hey, can we add on to this?’ Because his buyers were looking at $6 million houses. Someone like that, where they get to come in and money is just a tool and an object that you use, to them, $2 million is nothing,” he said.

“It comes down to either finding a buyer that doesn’t really care, they’ll just do it because it’s what they want, or it might sit (on the market) for a little bit if you have to try to be more appeasing to buyers in a certain price range.”

Pearson added that he suspects there are well-to-do Illinois residents who want to flee the city and find peace in nature. He said the Fennville area, just two-and-a-half hours outside Chicago, could be just the ticket.

It could also be a retreat for creative types, he said.

“I’ve got a friend in the celebrity world that said a lot of his friends could buy it who are songwriters … just to come here and have the seclusion and get their creative juices flowing,” he said. “Who knows?”

The house — which is 100% custom-finished — is full of costly wood imported from the north, including hickory flooring from northern Wisconsin and logs from Munising in the U.P.

This log cabin in Ganges Township in Allegan County was built in 2018 as a second home and is for sale for $1,977,000. | tHE DEVISSER GROUP

Economic development director leaving for Ohio position

Jeremiah Gracia has overseen $605m of private investment in Grand rapids

By Kate Carlson

Grand Rapids’ economic development director is leaving his role Oct. 4 for a similar position in Ohio, a move that comes as city development staff ask for more resources to keep up with a strong pipeline of projects.

Jeremiah Gracia, 42, started his position at the city of Grand Rapids in May 2020. His next job will be a homecoming of sorts as he returns to Dublin, Ohio, where he previously served nine years as the city’s senior economic development administrator. His new position there will be director of economic development.

“This is an opportunity for me to go back to my home state and return to not only my home but the department I was working at in a leadership role,” Gracia said.

Prior to his time in Dublin, Gracia also worked in international business development with companies from Japan, Germany, India and the Netherlands.

Gracia made the transition to Grand Rapids at the height of the COVID-19 pandemic where he experienced “the resilience of this community and its business leaders,” he said. Gracia was drawn to Grand Rapids because he wanted the experience of working in a more urban environment in an economic development leadership role, he added.

Under Gracia’s leadership, the development team has played a role in overseeing $605.8 million of private investment that is projected to lead to 3,713 jobs, according to city officials. Gracia also led the execution of the city’s Equitable Economic Development and Mobility Strategic Plan, which led to the formation of an inclusion program that steered more than $20 million to minority-owned, women-owned and micro-local subcontractors since 2021 for projects that are awarded city incentives.

“Leading the implementation of the Equitable Economic Development and Mobility Strategic plan has been a great professional experience for me,” Gracia said. “This community has a rich history of development, and many more transformative projects ahead of it and we have been very intentional about asking those development teams to have authentic community engagement. It has taught me a lot about the importance of that process and how that influences a project design and implementation. The community voice matters.”

Over the past three years, the city’s development department also approved a partnership through its SmartZone between Spartan Innovations L3C and Start Garden Inc., which has supported the creation of 599 jobs and assisted 99 companies in expanding with $54 million in direct follow-up investments, according to a statement from the city.

“Jeremiah came to Grand Rapids in a challenging and dynamic period during the pandemic,” City

Manager Mark Washington said in a statement. “He rose to the occasion and helped us through an economic slowdown and helped us recover stronger than ever. He’s helped set us up to welcome new and exciting projects that will provide additional housing options, grow and diversify our economy, and make this a world-class city.”

The city will conduct a nationwide search for Gracia’s successor.

Assistant Economic Development Director Jono Klooster will step in as interim economic development director starting Oct. 4. Klooster has more than 13 years of experience in the city’s economic development department in a variety of roles, and previously served as acting economic development director before Gracia’s appointment in 2020.

Meanwhile, Gracia’s departure

comes as city development staff seek more resources and employees to keep up with the increasing number of projects around the city. Those major projects include:

w The outdoor amphitheater and soccer stadium projects led by Grand Action 2.0.

w The $147 million mixed-use Factory Yards project on the city’s southwest side.

w The redevelopment of the Sligh Furniture building into a massive mixed-use development.

w Several large housing and mixeduse developments in the city’s Creston neighborhood.

Several city employees made the case for more resources to elected officials during a Sept. 5 city committee meeting.

“It’s the complexity of the projects — it’s not just the volume of them, but the complex nature of them, whether it’s the funding involved or the associated permitting timeframes,” City Engineer Tim Burkman said during the Sept. 5 committee meeting. “We are dealing with an awful lot these days, but that’s a good story as well, as far as the revitalization we’re experiencing and the transformation that’s happening.”

When you need a payroll provider with cutting edge technology

Are you looking for a payroll solution with faster ROI and a better experience for your employees? Mercantile Bank’s HCM is here.

Our Cloud-based technology combines time and attendance, payroll, HR and benefits into one world-class tool. And best of all, our locally based team will be there to assist you every step of the way – because Merc is here. mercbank.com/payroll

Gracia

University of Michigan HealthWest names new president

Ronald Grifka takes over for peter Hahn amid leadership shake up

By Mark Sanchez

Peter Hahn has departed as president of University of Michigan Health-West, two weeks after the parent health system restructured leadership and named a new president to oversee West Michigan operations.

The Ann Arbor-based University of Michigan Health said earlier this month that Hahn had “decided to resign from his position, announcing last week he would be pursuing other opportunities.”

In his place, University of Michigan Health named Chief Medical Officer Dr. Ronald Grifka as the new president of University of Michigan Health-West. Grifka has served as chief medical officer of the hospital since 2019.

“Ron is widely respected for his commitment to quality and safety, his relationship with the medical staff, and his visibility and communication with patients and staff,” said Dr. Marschall Runge, CEO of Michigan Medicine, dean of the University of Michigan Medical School and the university’s executive vice president for medical affairs.

Grifka began his new role on Sept. 9 and reports to Margaret Dimond, who University of Michigan Health on Aug. 23 named as regional president, overseeing operations at University of Michi-

gan Health-West and Sparrow Health in Lansing.

The region includes University of Michigan Health-West’s 208bed hospital in Wyoming, Sparrow’s 573-bed main hospital and five community hospitals, and about 11,000 employees.

Hahn joined the former Metro Health in 2016 as chief medical officer and was named president and CEO in 2018 after the health system’s acquisition by University of Michigan Heath and then-CEO Mike Fass’ subsequent retirement.

Under Hahn’s leadership, University of Michigan Health secured state approval to begin performing open-heart surgery and partnered with Trinity Health in West Michigan and University of

Walker OKs new plan for 550-unit housing project

Michigan Health’s Michigan Medicine to form regional oncology and cardiovascular care networks.

University of Michigan HealthWest this summer performed its 100th open-heart surgery at the Wyoming hospital campus, twice the caseload projected in the first year, and executives now expect to complete 120 procedures in the first year.

“We believe Ron’s leadership will provide a smooth transition and be important to continuing the positive momentum that has been established clinically, operationally and culturally at UM Health-West,” said Steve Van Andel, chairman of University of Michigan Health-West’s board.

Development is slightly smaller in scope due to market changes

By Rachel Watson

Citing a change in market conditions and rising costs, a pair of developers have tweaked part of their site plan for a 550-unit housing project two years in the works at a former golf course.

The Walker Planning Commission on Sept. 6 approved the development team’s request to amend their plan for the large apartment complex spanning dozens of buildings at the 142acre English Hills Country Club, 1470 and 1200 Four Mile Road NW in Walker. The course had reopened in previous years but permanently closed in 2020.

Mark Avis with Lake Bluff, Ill.based Redhawk Multifamily LLC and John Hennessey with Noblesville, Ind.-based Domo Development are leading the project that was proposed in early 2021 and could start construction next month.

The new plan reduces the total number of buildings in the complex from 42 to 37 and the number of units from 552 to 550. Units will be designed smaller than originally planned.

The change only affects the northern half of the development, dubbed Area A. In that section, the number of buildings was reduced from 24 eight-unit buildings — with private garages for each unit — to 19 10-unit buildings, with six garages per building. Additional uncovered surface parking areas were added to account for fewer garages in the new plan. With fewer buildings, there’s also now a bit more green space in the development.

Area B will maintain the original configuration of 18 buildings with 20 units each.

No changes are proposed to the street layout, utilities or onsite amenities, which include a clubhouse/fitness center, an outdoor pool, dog park, community gardens, pickleball and bocce courts, and a trail system.

In a summary of their requested changes filed with the city, the developers said their original vision called for apartments rang-

ing in size from 1,500 square feet to 2,400 square feet, including the attached garage. The initial design was spurred by the COVID-19 pandemic and the assumption that more people would be working from home with plenty of workspace.

However, ballooning construction costs and inflation would have increased the estimated monthly rate for units of that size from an initial forecast of $2,200$3,600 per month to about $2,700-$4,200 per month, according to the developers.

“Much higher than the market will support,” they wrote in their application.

The units in the adjusted plan will range from about 855 square feet to 1,247 square feet, with rents ranging from about $1,100$1,800, according to the amended application.

Jesse Lewter, project manager for Mason-based Wolverine Engineers & Surveyors Inc., spoke on behalf of the developers at the meeting.

“What it really came down to was the fact that they didn’t believe that this was going to be a viable option with the larger units that we had before,” he said. “The building footprints that we have now are almost the same size, but the units are slightly smaller. This allows for more units per building, while also making the project more viable. They felt like having those larger units, they weren’t going to be able to rent them out. And all in all, we want a successful development that reaches 100% (lease-up).”

Reached after the meeting, Avis told Crain’s Grand Rapids Business that the initial plan was based on costs from two years ago, but circumstances have changed.

“Our rents (in other Redhawk projects) have been going up 8% to 10% a year because of the housing crisis. So construction costs have been rising, but rents go up, too — and it’s also just a factor of the timing of the deliveries of the project versus what we originally projected,” he said.

Avis declined to disclose the total. Construction is expected to start in October and wrap by spring 2026, according to the project timeline filed with the city of Walker.

Grifka Hahn

A new design for the English Hills housing project in Walker includes six garages per 10-unit building. | mAS ASSOCIAtES LLC

CRAIN’S LIST TOP AREA SBA LENDERS

CRAIN’S LIST TOP AREA SBA LENDERS

It’s great to have an impact, to help people.

Michael C.

Solutions Advisor

Seneca, NY

Michael loves listening to people’s stories and encouraging them to pursue their goals. He’s proud to be one of more than 210,000 Bank of America employees making a real impact in their communities. Learn more at bofa.com/about

West

Credit

CRAIN’S LIST TOP AREA SBA LENDERS

CRAIN’S LIST TOP AREA SBA LENDERS

Ranked by dollar amount of 2022 W. Mich. SBA loans from January 1, 2022 to December 31, 2022

First Bank

FB Corp.

600 James S. McDonnell Blvd. St. Louis, Missouri 63042 p (800) 760-2265 firstbanks.com

Cadence Bank, National Association

Cadence Bancorporation

2100 Third Ave. Birmingham, Alabama 35203 p (205) 226-2000 cadencebank.com

United Midwest Savings Bank, National Association

MSB Capital Corporation

101 S. Main St. De Graff, Ohio 43318 p (937) 585-5861 f 585-6603 umwsb.com

Community Choice Credit Union 6163 NW 86th St., Suite 105 Johnston, Iowa 50131 p (515) 334-8100 comchoiceu.org

The Community Bank 113 North Fifth St. Zanesville, OH 43701 p (740) 454-1600 thecombank.com

Fred Crispen Terry Crispen CLP

Josh Cook CLP, SBA Express

Brent MirgonSBA Express

$130,000

$75,000

Crain's Grand Rapids Business list of Top Michigan Small Business Administration Lenders, ranked by dollar amount of 2022 W. Mich. SBA loans from January 1, 2022 to December 31, 2022 — Michigan SBA loans, is the most comprehensive available. Figures supplied by the U.S. SBA Detroit district office are for 7(a) guaranty approvals by holding company. *PLP denotes Preferred Lenders Program, which enables the bank to lend directly to the borrower without SBA approval. CLP denotes Certified Lenders Program, which enables the bank to reduce the waiting period for SBA approval to three days. DND = did not disclose

LIST STORE: Download this list now at crainsgrandrapids.com in Excel or PDF format. | The Book of Lists and other lists are also available.

CRAIN’S LIST TOP AREA CPA FIRMS

774-8221 f 459-3594

Rehmann LLC

investments, financial and estate planning, advanced design 401(k) plans, nonqualified deferred comp. plans

Institute of CPAs, Michigan Association of Certified Public Accountants, and more

Doeren Mayhew

Cesar E. Chavez Ave. SW, Suite 100

Rapids 49503

(616) 235-5200 f 235-5285

Wilson Ave. SW

49418

(616) 532-8861 f 532-4552

49418

(616) 538-0460 f 538-0215

Pennell CPA 5005 Cascade Road SE, Suite A Grand Rapids 49546 p (616) 285-7050 f 285-7150 pennellcpa.com

Monroe, Sweeris & Tromp PLC 6617 Crossing Drive SE Grand Rapids 49508

p (616) 554-5800 mstpc.com

Kaptein, Dykstra & Co. PC 4095 Chicago Drive SW, Suite 101 Grandville 49418 p (616) 530-8712 f 530-0907 kdccpa.com

Andrews Hooper Pavlik PLC 2311 E. Beltline Ave. SE, Suite 200 Grand Rapids 49546 p (616) 942-6440 f 942-6095

Morgan & Associates PC 1787 Grand Ridge Court NE, Suite 200 Grand Rapids 49525

776-6457 f 776-6439

audit, accounting outsourcing services, payroll services, recruitment services, Sage Intacct software, business consulting, retirement plan services

MICPA, ACFE, Moore North America, Moore Global Network Limited Hungerford Nichols CPAs +

accounting, tax, advisory, business valuation, fraud and litigation, managed IT services and wealth

tax planning and preparation; individual, trust and estate tax planning and preparation; compiled financial statements; accounting and payroll services; family and business office services

review and compilation services for construction, manufacturing, transportation, distribution, service industry, not-for-profit and employee benefit plans, business and individual tax planning and compliance services, estate planning and compliance services, business consulting services, sales and acquisitions, client services

AICPA, MICPA , WMEPC, ESOP Association, EBP Audit Quality Center

CRAIN’S LIST TOP AREA CPA FIRMS

Ranked by 2022 West Michigan billings

Dan Carter Advisors CPA PLC 396 Pettis Ave. SE, Suite 200 Ada 49301 p (616) 818-1976 f 588-6308 dancarteradvisors.com

Bredeweg & Zylstra PLC 4665 Broadmoor Ave. SE, Suite 210 Grand Rapids 49512 p (616) 698-2000 f 698-0756 bzcpas.com

Calvin D. Meeusen CPA PLLC 600 S. Beacon Blvd., Suite 1A Grand Haven 49417 p (616) 846-6210 f 846-5111

Deloitte LLP and its subsidiaries 38 Commerce Ave. SW, Suite 600

Goodlander, Swett & Rybicki CPAs

361-1896 f 361-0276

Vander Ploeg, Bergakker & Associates

4145 Embassy Drive SE Grand Rapids 49546

(616) 957-0691 f 957-1199 vbacpas.com

Crain's Grand Rapids Business list of top area CPA firms, ranked by 2022 West Michigan billings, is the most comprehensive available. The list is based on responses to Crain's Grand Rapids Business surveys. Crain's Grand Rapids Business defines "West Michigan" as Allegan, Kent, Ottawa and Muskegon counties. Crain's Grand Rapids Business surveyed 114 companies; 21 returned surveys and 21 are listed. To be considered for future lists, email danielle.nelson@crain.com. DND = Did not disclose

Nominate a human resources professional who effects change or provides services that are transformative and innovative.

Nominations Due October 6

CrainsGrandRapids.com/NotableNoms

MSU Federal Credit Union to acquire two Chicago-area banks

More than 10,000 MSU students and alumni live in the Chicago metro area

By Mark Sanchez

One of Michigan’s largest credit unions will expand in the Chicago market through the acquisition of two banks.

On Aug. 29, East Lansing-based Michigan State University Federal Credit Union and McHenry Bancorp Inc., the parent company of McHenry Savings Bank in McHenry, Ill., a northwest suburb of Chicago, said they’ve signed a de nitive acquisition agreement. Under the deal, which is valued at $36 million to $38 million, MSU Federal Credit Union will acquire McHenry Savings Bank’s assets and liabilities.

McHenry Bancorp shareholders would receive $39 to $41 in cash for each share of common

April Clobes said in a statement on the deal.

stock, an amount that’s subject to change based on the bank’s equity value at closing.

e sale price would be about 1.5 times McHenry Savings Bank’s book value, Crain’s Chicago Business reported.

Once the deal closes toward the end of the rst quarter in 2024, pending approval by McHenry shareholders and regulators, the combined nancial institution will have about $8.2 billion in total assets, $6.3 billion in loans, $6.7 billion in deposits and 31 overall branches in Michigan and Illinois.

e acquisition “adds exponentially to our growing market” in the Chicago area, MSU Federal Credit Union President and CEO

“ is transaction provides an excellent opportunity to further expand and complement our services in McHenry County and the surrounding Chicagoland area,” Clobes said. “We look forward to the combined synergies our two organizations will achieve in our local communities while providing McHenry Savings Bank’s clients with an expanded array of resources and products.” ree days after the McHenry Bank deal, MSU Federal Credit Union announced a de nitive agreement to acquire Algonquin State Bank headquartered northwest of Chicago. A news release said MSU Federal Credit Union “will purchase substantially all assets and assume substantially all liabilities of Algonquin State Bank.” e two deals come on the heels of MSU Federal Credit Union announcing that it planned to open ve branches in the Chicago area by next year, as Crain’s Detroit Business previously reported. Clobes said at the time that the move out of state was based in part on an opportunity to serve the more than 10,000 MSU students and alumni who live in the Chicago metro area.

At the end of the second quarter, MSU Federal Credit Union had more than 348,000 members with $7.71 billion in total assets and total deposits of $6.33 billion, according to a quarterly nancial report with the National Credit Union Administration. Loans through midyear totaled $5.95 billion, including $606.6 million in commercial loans.

MSU Federal ranks as the second-largest credit union in Michigan, behind Grand Rapids-based Lake Michigan Credit Union, which had $12.72 billion in total assets with nearly 477,000 members as of June 30. LMCU operates 67 o ces in Michigan and Florida.

East Lansing-based Michigan State Federal Credit Union will expand to Chicago next year with ve new locations. The credit union also announced it planned to buy a community bank in the city’s northwest suburbs. | MICHIGAN

“This transaction provides an excellent opportunity to further expand and complement our services in McHenry County and the surrounding Chicagoland area.”

April Clobes, MSU Federal Credit Union President and CEO

LEADERS IN COMMERCIAL REAL ESTATE

Commercial real estate leaders are executives, developers, brokers, architects, planners and other professionals who provide high-quality services to the real estate and development industry by collaborating with others to produce significant projects in West Michigan. They advocate within their industry groups and local and state government, and they support their communities through volunteerism, mentorship and education. The built environment takes many hands, and these commercial real estate leaders are adept at working with others to reach the finish line on multiple projects.

Methodology : The honorees featured in this Notable Leaders in Commercial Real Estate report were nominated by their peers, companies or family members. Crain’s Grand Rapids Business editors selected nominated honorees based on their career accomplishments, track record of success in their field and contributions to their industry and community, as outlined in the detailed eligibility forms. Special Projects Editor Tim Gortsema, tim.gortsema@crain. com, managed this Notables Leaders in Commercial Real Estate report, and Elyse Wild wrote the honoree profiles based on the nomination forms. Crain’s Grand Rapids Business currently is accepting Notable Leaders in HR nominations. For questions about how to nominate someone for this or a future Notable award program, visit our Nomination Page or email notablesgrandrapids@ crain.com.

Read on to learn how these honorees are shaping these important industries.

Vishal Arora Founder and CEO Magnus Capital

Partners

Vishal Arora is founder and CEO of Magnus Capital Partners, a real estate development and investment firm that focuses on workforce housing. An advocate for affordable housing, Arora has led Magnus to develop a repeatable, sustainable and profitable business model that has delivered nearly 500 housing units across 15 buildings. In addition to his work at Magnus, Arora volunteers his time, skills and experience in the community. He serves on the boards of the Grand Rapids Housing Commission and the Grand Rapids Community Foundation, and is a founding member of the Magnus Foundation, which is dedicated to providing financial assistance to individuals and families in need. Arora leads Magnus in managing more than $1 billion in investments.

Melissa Collar Chief Legal Officer and Vice President of Strategic Partnerships, Rockford

Construction

Melissa Collar is chief legal officer and vice president of strategic partnerships at Rockford Construction, where she oversees the legal and risk teams, comprising development, construction, property management, asset management and facilities management. She has more than 25 years of experience in the legal and construction industries and has been involved in several high-profile projects in Grand Rapids, including Grand Rapids Innovation Park, Grand Rapids Downtown Market and Helen DeVos Children’s Hospital. She is passionate about teaching and mentoring others and has developed creative ways to help team members understand legal risk. She also is a founding member of Inforum and serves on the Women’s Resource Center board.

Dave Denton Vice President, Commercial Real Estate Brokerage, DAR Commercial Real Estate

Dave Denton is a proven leader in the commercial real estate industry with over 25 years of experience. He is a site selection specialist with a deep understanding of the Michigan market. Denton represents top branded retailers, restaurants and office users, including Starbucks, which he has exclusively represented for more than 15 years. Under Denton’s leadership, DAR’s team of five licensed brokers completed more than 300 transactions in 2022. He is past president of Commercial Alliance of Realtors and the Michigan CCIM chapter and won numerous awards, including Realtor of the year and outstanding achievement in the industry. He balances his life with his “6F” focus: family, faith, friends, fun, fitness and philanthropy.

Gregory Dilone Vice President of Development, Clark Logic

Greg Dilone leads new industrial development for Kalamazoobased, single-source logistics solutions company Clark Logic. With ingenuity and determination, Dilone led the development of 1.2 million square feet of constructed industrial sites, totaling $100 million. In just 18 months, he secured long-term leases for 1.2 million square feet of industrial space. He said he is most proud of leading the development of a challenging site in Pavilion Township. Dilone’s vision and problem-solving approach secured $11.5 million in financing to break ground on the site that was passed over by multiple developers. He has hosted internship programs in conjunction with WMU, working with more than 50 interns to provide hands-on experience.

John Essex Principal, Port City Ventures/ Core Reality Partners

John Essex has demonstrated a commitment and passion for the community of Muskegon, investing in the rehabilitation and development of multiple vacant properties without tenant commitment. He co-founded Core Realty Partners, one of Muskegon’s most active residential and commercial real estate firms, and invested in and developed numerous properties in the downtown area. He also purchased his father’s manufacturing business and grew it into the largest privately owned employer in Muskegon County. Upon the sale of the business, Essex invested his proceeds in the development of downtown Muskegon. He also serves on the boards of ChoiceOne Bank, Eagle Alloy, Cascade Die Casting Group, Kids’ Food Basket, Muskegon County Community Foundation, and Boys and Girls Club of Muskegon.

Megan Feenstra Wall Principal and Owner, Mathison|Mathison Architects

Megan Feenstra Wall is principal and owner at Mathison|Mathison Architects, a Grand Rapids-based architecture and design firm. With a passion for meaningful spaces, Feenstra Wall, a licensed architect, is dedicated to inclusivity in design, championing overlooked voices and perspectives. Her work drives change within the industry, addressing gender and diversity disparities. The firm’s portfolio showcases projects like St. Cecilia Music Center, Grand Rapids Airport Viewing Park, and Special Olympics Michigan, spanning diverse spaces from distilleries to residential homes. In 2021, she became the first woman board president of AIA Grand Rapids. Recognized as one of the 50 Most Influential Women in West Michigan, she also received the AIA Michigan Young Architect award and serves on various boards.

Michael Garrett President and CEO, Pinnacle Construction Group

Michael Garrett is founder, CEO and president of Pinnacle Construction Group, a vertically integrated commercial real estate firm in Grand Rapids. He grew the company from a one-person operation to a firm with 40 employees and more than $120 million in assets under management and $55 million under development. Garrett is known for his commitment to quality, dedication to employees and community involvement. He is a volunteer for the JEM mentorship program and serves on the Advisory Council for Samaritas. He expanded Pinnacle’s affordable housing offerings with “Campus of Hope,” a $50 million project in partnership with Samaritas, Dwelling Place and Bethany Christian Services that will create 85 affordable housing units and office space for three nonprofits.

Richard Hapner President, Vision Real Estate Investment

An energetic leader, Richard Hapner oversees brokerage, development and property management at Vision Real Estate Investment. Initially joining Vision as a development associate, Hapner’s dedication and vision led him to ascend to president of the company in just six years. As a development associate at Vision, Hapner led the company’s first ground-up development, Crossroads Business Center, which set the trajectory for the firm’s future. Today, he has a hand in all real estate transactions, new development and investment projects, as well as the longevity of the company’s assets, managing a $125 million real estate portfolio. He has worked on substantial real estate development projects throughout West Michigan across a variety of industries, including medical offices and industrial properties.

Steve Huizinga President, Freedom Construction

Steve Huizinga is a seasoned project manager and estimator who boasts 20-plus years in construction. He is responsible for managing and estimating projects with a combined contract value of $5 million. Prior to joining Freedom Construction, Huizinga was owner and president of Allied Mechanical Services. Huizinga landed a $1 million contract with the city of Grand Rapids for replacing a chlorine line in the city’s water filtration plant, the highest-value contract for Freedom Construction to date. He is a board member for Construction Allies in Action, Construction Careers Council, and Associated Builders and Contractors. He regularly mentors women, minorities and participants in Mel Trotter’s workforce development program.

NOTE WORTHY OVERVIEW

Matt Jones Managing Director, Walker & Dunlop

Matt Jones is managing director of Walker & Dunlop Investment Sales in Grand Rapids. He has been involved in some of the largest and most visible apartment properties that have sold in the state over the last five years and won numerous awards for sales volume. He has institutional knowledge and service of multifamily investment sales and been involved in sales and debt transactions that total well over $1 billion in the state over the last two years. Jones is a member of the JBoard and Board of Governors at Van Andel Institute and a member of the National Multi Housing Council, Rental Property Owners Association, Michigan Apartment Association, Save the Dunes and West Michigan Mountain Biking Association.

The total dollar volume of commercial real estate transactions was $1.14 trillion in 2022, down from $1.43 trillion in 2021. Commercial property values are down 15% in the past 12 months, led by a 25% decline in office value and a 21% decline in apartment value. For the first time, the share of commercial real estate investment in multifamily homes has overtaken investment in offices.

Source: The Motley Fool

Jeff Karger

Senior Vice President, JLL

Jeff Karger is a prominent figure in Grand Rapids’ commercial real estate scene who embodies leadership, expertise, client dedication and community commitment. Leading JLL’s local office since 2016, he transformed it into the Midwest’s premier branch. Overseeing 1 million-plus square feet, his team closed 500,000-plus square feet of transactions in 2022. Karger excels in intricate real estate dealings, partnering with global corporations, nonprofits and for-profits. Key achievements include establishing and elevating the JLL Grand Rapids office, orchestrating major acquisitions like 171 Monroe (PNC Bank building), securing locations such as 3333 Deposit Drive NE for Northpointe Bank, and facilitating MDOT’s parkand-ride expansion.

John Kuiper

Partner and CEO, Advantage Commercial Real Estate

As CEO of Advantage Commercial Real Estate, John Kuiper is a dedicated leader passionate about making a difference through commercial real estate. With a focus on industrial real estate, he boasts a portfolio exceeding $1 billion in transactions. Kuiper’s community engagement spans boards like Cascade Fellowship Christian Reformed Church, Wedgwood Christian Services, and more. A presence on the Economics Advisory Board for Grand Valley State University and in organizations like CoreNet Global and SIOR, he also is a member of the Midwest Real Estate News Hall of Fame. Recognized for his professional achievements, Kuiper’s contributions include facilitating a 10-plus year HQ lease, various awards, and a Realtor of the Year honor from CAR.

Brad Laackman CEO, Honor Construction

Brad Laackman founded Honor Construction in 2009. Today, the firm has developed some of West Michigan’s most recognizable restaurants and breweries, including City Built Brewing Company and The Green Well. In 2020, he cofounded Victory Development Group, which focuses on West Michigan’s multi-tenant growth by developing large-scale housing with market-rate apartments. Laackman holds a construction management degree from Ferris State University and an MBA from Northwood University. He is a veteran of the United States Navy and served for eight years in Japan and the Middle East as a search and rescue boat captain. He is a trustee and chair of LaughFest and serves on various boards, combining his philanthropy with achievement.

NOTE WORTHY PANDEMIC SHIFTS

Scott Morgan Senior Vice President, Colliers West Michigan

Scott Morgan possesses 30-plus years of experience as a Grand Rapids commercial real estate adviser, with an emphasis on medical facilities. Guiding businesses toward inaugural real estate investments by acquiring their premises has become his forte. A dedicated mentor to newcomers, he readily imparts wisdom and has led training sessions on industry best practices for multiple audiences. Morgan’s career highlights include orchestrating the $22 million sale-leaseback of the Grand Rapids Ophthalmology building for Global Medical REIT and securing Northwestern Mutual’s 10-year lease at Bridgewater Place. Morgan’s leadership and dedication make him an esteemed asset to both the commercial real estate realm and the Grand Rapids community as a whole.

CONGRATULATIONS SHANE NAPPER & MELISSA COLLAR

Significant shifts in commercial real estate investing have occurred since the pandemic. Multifamily properties overtook offices for the largest share of commercial real estate investment in the second quarter of 2021 as the impact of remote work became apparent. In the fourth quarter of 2022, the share of commercial real estate investment in office space grew for the first time since 2017.

Source: The Motley Fool

Megan Murray Owner, Megan Murray Interiors

With almost two decades of experience, Megan Murray is at the helm of the commercial interior design firm Megan Murray Interiors. Murray is skilled in many facets of design, ranging from commercial space design to conceptual space design used for marketing materials. Her extensive portfolio features Michigan staple companies like Rockford Construction, as well as global entities such as Denmark-based textile company Kvadrat. Murray has been praised for her ability to blend function and aesthetics, driven by her innate grasp of space and people. She furthers Grand Rapids’ design and architecture industry by volunteering for community-centric organizations and holding key positions on boards like the International Interior Design Association Michigan Chapter and Lions and Rabbits Center for the Arts.

Shane Napper President and COO, Rockford Construction

Shane Napper, president and COO of Rockford Construction, boasts a dynamic 25-year journey at the company, embracing roles from superintendent to sales manager. Renowned for leading some of the company’s largest and most innovative projects, he orchestrated the Amway Grand Plaza Hotel renovation — replacing 96,500 square feet of curtain wall while keeping the business operational. Beyond construction, Napper champions workforce growth, diversity and mental health. He founded Rockford’s “Dimensions” program, elevating minority contractors’ spending by 450% in three years. As well, he is a member of the Young Presidents Organization (YPO), an international organization comprised of 34,000-plus executives from businesses in 150 countries.

Shirward Punches Managing Partner, Bridge Commercial Real Estate

With 20-plus years in real estate, Shirward Punches is managing partner at Bridge Commercial Real Estate, which he co-founded in 2010. Tasked with overseeing Bridge’s growth, he excels in health care brokerage, portfolio management and business launches. Punches is active in the community and serves on multiple boards, including the Area Agency on Aging of Western Michigan, West Michigan Asian American Association and Grand Rapids Asian Pacific Foundation. Some of his noteworthy achievements include launching health care divisions nationally, managing major health care portfolios, and assisting with senior housing projects across states. Punches’ professional excellence and community dedication make him an invaluable asset to clients.

NOTE WORTHY

MULTIFAMILY RENT GROWTH

Jen Schottke President, West Michigan Construction Institute

As president of West Michigan Construction Institute (WMCI), Jen Schottke spearheads the pivotal center for commercial construction education in Grand Rapids. Schottke’s dedication to inspiring young minds toward construction careers is evident as she guides WMCI’s trade programs. Advocating for K-12 outreach, professional growth and the commercial construction sector, she’s a driving force in West Michigan’s workforce development landscape. With roles on the Downtown Development Authority and West Michigan Works! Workforce Development Board, and two terms as treasurer on the Grand Rapids Public Schools Board of Education, she is steadfast in championing equity in education and construction.

Rent is growing fastest in mid-size and smaller cities, although demand for apartments is still strong in big cities. The top five climbers and annual percentage increase:

Peoria, IL (9.55%)

Fayetteville, NC (8.98%)

Kingsport, TN (8.39%)

Knoxville, TN (8.08%)

Springdale/Rogers, AR (7.86%)

Source: National Association of Realtors

Suzanne Schulz

Urban Design and Planning

Practice Leader, Progressive AE

Suzanne Schulz is the urban design and planning practice leader at Progressive AE, overseeing innovative built environment transformations. Her team’s expertise spans comprehensive plans, housing strategies, mobility and placemaking, highlighted by works like the Zoning Reform Toolkit and Ada Township Master Plan. Schulz’s career includes two decades with the city of Grand Rapids, where she led projects such as the 2002 Master Plan and Green Grand Rapids initiative. She is a board member for Progressive AE and Broadway Grand Rapids. Schulz’s achievements culminated in her induction into the American Planning Association’s College of Fellows in 2022, a distinction earned by only 1% of certified planners nationwide. Her leadership extends across multiple advisory councils and boards.

Ben Sietsema Owner, Honeycrisp Ventures LLC

Broker, manager and investor

Ben Sietsema has actively shaped the real estate landscape since his Calvin University graduation in 2010. With a hands-on ethos, he orchestrates projects and spearheads investment practices, fostering robust investor relations and strategic property planning throughout the region. As the exclusive owner of Honeycrisp Ventures LLC, Sietsema’s hallmark lies in revitalizing overlooked properties and optimizing their use to yield significant value increments and prosperous returns for stakeholders. He contributes to the Northpointe Christian Foundation and Calvin University NextGen boards, exemplifying a fusion of astute business acumen, property transformation and philanthropic engagement designed to better West Michigan.

NOTABLE SPOTLIGHT with Greg Dilone, Jr.

Speculating on Southwest Michigan’s industrial real estate growth trajectory

With a background spanning manufacturing, marketing, and product development, what led you to pursue real estate?

As a real estate developer with broad industry expertise, Greg Dilone Jr. is spearheading major growth opportunities in Michigan and beyond. A general partner in more than seven development sites, Dilone has closed over 500 acres of industrial development land while securing more than $70 million in construction loans, $15 million in limited partnership funding and $11.5 million in Brownfield incentives.

Dilone serves as managing partner at Fusion Management Partners, the strategic investment firm he founded in 2009 to provide marketing services, growth support and other strategic resources to growing companies. He also serves as vice president of business development at Clark Logic and director of development at Great Lakes Capital—helping these firms form a joint venture focused on speculatory industrial development in Southwest Michigan.

Learn more at gregdilone.com

I was introduced to industrial real estate while working with one of my marketing clients, Clark Logic being a highlight, about 10 years ago. I realized that real estate is a blend of the skills I’ve learned over my career. My intimate knowledge of multiple manufacturing sectors, skills in marketing and team building gives me valuable insight into tenant needs and the skills to take a site from a greenfield to a stabilized real estate asset.

How did you identify the opportunity for speculatory industrial development in West Michigan?

Living in metro Detroit all my life, I’ve seen countless developers constructing speculatory industrial developments, but nothing in Southwest Michigan. The marketplace had little to no vacancies, and no one was trying to fix the problem by building new. I spearheaded bringing together a team to meet the needs.

Clark Logic and Great Lakes Capital formed a 50/50 joint venture called Industrial Partners USA (IPUSA) to bring spec solutions to the region. We focused our attention on

the Greater Kalamazoo Area and Battle Creek, where we had deep relationships and existing customers through Clark Logic. We put up our first spec in 2020, and it’s been expanding ever since.

What are your biggest real estate wins?

Industrial Partners USA (IPUSA) has signed three single-user leases totaling over 1.13 million square feet.

IPUSA started building in Battle Creek just before the pandemic, and in March of 2022 we landed a Fortune 500 company for a full tenant lease of 270,000 square feet.

IPUSA closed another site in Portage in 2021, and we locked in a tenant for all 240,000 square feet in July 2024 within 45 days of breaking ground.

IPUSA broke ground in Pavilion Township at 296,000 square feet, and quickly, a tenant came to us asking for more space. Within 45 days, we closed that tenant for 624,000 square feet, expanding our phase one spec right out of the gate.

What’s your outlook for the future of industrial real estate in Southwest Michigan?

I think there’s going to be a pretty explosive build of industrial developments over the next five years. There’s pent-up demand because the marketplace has been hungry for new space for decades. The state’s “mega site” projects will create increasing demand for new facilities and labor. In order to find labor, you need to build in the right location. I think Southwest Michigan will continue to attract development groups, and competition will grow for the already scarce land and labor resources.

How are you nurturing the next generation of real estate professionals?

I have worked with Western Michigan University’s integrated supply management program to host five internship semesters at Clark Logic. I’ve worked with more than 50 students on various projects. We design real-world examples that drive students to come up with solutions to problems they didn’t know existed. It shows them how real estate wraps into supply chain management and how that becomes a major resource for growth in different segments.

Zachary Verhulst

Founder and CEO, Pure Architects

Zachary Verhulst’s passion for architecture and community is evident through accolades and leadership. His honors include being a 2019 GRBJ 40 under 40 recipient and AIA West Michigan’s Young Architect of the Year. Verhulst’s impact extends to boards, including Blandford Nature Center and Covenant House Academy, and advisory roles for the Academy of Design and Construction at Innovation Central High School and ICCF’s Executive Committee. As owner, founder and CEO of Pure Architects, he successfully navigated the company through COVID-19 while overseeing teams in Grand Rapids and Detroit. His commitment garnered Pure Architects the Small Business of the Year Award and Chamber of Commerce’s EPIC Award.

NOTE WORTHY OFFICE VACANCIES

Matt Wickstra Associate Vice President, Colliers West Michigan

With two decades in commercial real estate, Matt Wickstra is an adept adviser in brokerage, development, finance and construction. His primary focus is industrial real estate, investment sales and land development. Over the years, he has represented Fortune 100 companies, assisted with a variety of build-to-suit projects, overseen sale-leaseback transactions, and been involved in both consulting and planning services. He draws from his financial planning and analysis experience to find creative solutions to mitigate risk and maximize real estate opportunities for clients.

Wickstra serves on the board and finance committee of Lakeshore Habitat for Humanity, leveraging his expertise to catalyze development.

Source: National Association of Realtors

Carrie Wilson CEO, Freedom Construction

Carrie Wilson is CEO and proprietor of commercial construction management company Freedom Construction. With a leadership background spanning diverse sectors, she’s committed to fostering a people-centric and communitydriven enterprise. Guided by the mission “to build and serve with character and purpose,” Wilson leads Freedom Construction in striving to create generational wealth in marginalized communities. By expanding bid access for minority-, veteran-, and woman-owned trade partners, the company seeks to initiate meaningful change for all community stakeholders. Wilson’s volunteer efforts include imparting soft skills to Momentum’s Mel Trotter Workforce Development Program and mentoring aspiring women, minorities and small business leaders.

NOTABLE SPOTLIGHT with

Mary Anne WisinskiRosely

Office Specialist and Partner, NAI Wisinski of West Michigan

Mary Anne Wisinski-Rosely has been a force in commercial real estate in West Michigan for nearly 30 years. She specializes in the sale and leasing of office properties and has worked with clients that have a legacy presence in West Michigan, including Grand Rapids Community College, Saint Mary’s, Rockford Construction and more. Wisinski-Rosely’s career achievements include Realtor of the Year and Commercial Real Estate Hall of Fame. More recently, in 2022, she was honored with Largest Sale in Retail from the Commercial Alliance of Realtors. Wisinski-Rosely sits on the Grand Valley State University Economics Department Advisory Board and previously served on the boards of Dwelling Place and Ronald McDonald House.

Michael Garrett

Building toward commercial real estate growth in West Michigan

What was your vision when founding Pinnacle Construction Group?

I set out to create a firm that placed client happiness above the profitability of the firm—knowing that if I achieved that, the firm would be successful in the long run. Today, that philosophy has proven true, and our tagline “ask our clients” emphasizes that mission.

What are the keys to Pinnacle’s success?

pass the advantages on to our clients and investors.

How are you tapping into new growth opportunities?

in the commercial construction industry before starting his firm, Pinnacle Construction Group, in 1996. Through construction management, design-build, property management, architecture, and real estate development, Pinnacle has impacted many notable projects throughout West Michigan.

In addition to serving as president and CEO at Pinnacle, Garrett gives back to industry and community organizations. He serves on the Construction Industry Advisory Council at Texas A&M University, where he earned his bachelor’s degree in construction science. He also serves as a research forum member of NAIOP, the Commercial Real Estate Development Association; an advisory council member of Samaritas, a local non-profit supporting disadvantaged families; and a mentor through Jandernoa Entrepreneurial Mentoring.

First, I really believe that happy employees create happy clients, and that’s something we focus on every day. We have an entrepreneurial work environment where employees are rewarded for the personal ownership they take of their clients’ happiness.

Second, we have positioned ourselves to serve as the single point of responsibility for all the commercial real estate needs of our clients. Our clients can bring an idea to us, and we can walk them through every step of the process to turn that dream into reality.

Lastly, it’s the way we treat our partners. Lenders respect and trust us, subcontractors know we’ll treat them right, and commercial real estate brokers enjoy working with us. We’re able to leverage all these strengths and

As a company, we’ve been very intentional about maintaining consistent and manageable growth. I’ve always been cautious to not get out over my skis, yet still take calculated risks each year to grow. In recent years, we have hired several very skilled people who have diversified our service offerings, including a new architectural division and improved real estate development capabilities.

What’s your outlook for West Michigan’s commercial real estate market?

I’m cautious about the immediate future of the commercial real estate market in West Michigan, but still very bullish on the region long-term.

Right now, there’s almost no new development of speculative office buildings and significantly less development of speculative industrial projects. Multi-family development seems to remain strong, although deals are much more difficult to put together today than they were two years ago. Retail has certainly rebounded since

the pandemic, and we’re seeing rising rents across our existing portfolio and steady demand for new construction of retail buildings. Nearly all of the construction we’re working on right now as a firm is for pre-leased or owneroccupied buildings.

Despite all these headwinds, our firm is busier than ever. We have the largest number of multi-family units under development we’ve ever had, our construction backlog is the highest it’s ever been, and we continue to sign up new clients.

Why are you bullish on West

Michigan?

The region continues to experience steady population growth, which is very good news for commercial real estate. West Michigan is attractive to many people because it’s a good place to raise a family, it’s comparably affordable to live here, and it’s a truly gorgeous part of the state. Additionally, the region benefits from a tremendous number of philanthropic families, a strong medical sector, and a diversified economy. Going forward, I expect to see more national businesses expand into Grand Rapids as the city grows.

Michael Garrett spent more than a decade working

Fall arts and culture guide

the Grand Rapids arts scene includes much more than ArtPrize. While the annual arts competition runs through Oct. 1 in downtown Grand Rapids, local cultural arts organizations operate year-round, with most kicking off their new seasons at the start of this month.For this guide, Crain’s Grand Rapids Business is spotlighting a handful of events from across the region that showcase some of the best arts and entertainment offerings that West michigan has to offer.Compiled by Elyse Wild

Sept. 19-24, 2023

Funny Girl

Broadway Grand Rapids

DeVos Performance Hall

treasured Broadway musical “Funny Girl” makes its Grand Rapids debut this month. the original 1964 musical launched Barbra Streisand into stardom and told the bittersweet comedic story of stage-struck Fanny Brice’s rise to fame alongside a whirlwind romance with gambler and con artist Nicky Arnstein. Newcomer Katerina mcCrimmon takes the lead as Fanny Brice alongside 50-year musical theater veteran and Grammy-award winner melissa manchester as Fanny’s mother, mrs. Brice.

Sept. 22, 2023

Great Performance Series: Para. Mar Dance Theatre

Hope College Performance Series, Holland

Discover the dynamic martinez Contemporary Ballet, a Chicago-based repertory company pushing the boundaries of dance. Founded by acclaimed choreographer Stephanie martinez, the troupe has garnered wide praise for its bold productions. With more than 60 ballets for Joffrey Ballet, Ballet Hispanico and more, martinez empowers diverse artistic voices in contemporary ballet through her own company. Highlighted in Dance magazine’s “25 to Watch” 2022

feature, martinez Contemporary Ballet’s innovative prowess shines, making waves in the dance world. Witness their rise as they redefine the ballet landscape, leaving an indelible mark.

Sept. 23, 2023

A Night on Swan Lake Kalamazoo Symphony Orchestra

Witness the Kalamazoo Symphony’s triumphant return with a captivating

symphonic journey. the night begins with Richard Strauss’ “Don Juan,” a tale of scandal and seduction.

Award-winning pianist Awadagin Pratt, for whom Jessie montgomery composed Rounds, then presents a

Grand Rapids Ballet Dancer Yuka Oba-Muschiana. | RAY NARD ImAGEmAKER

rhythmic piano concerto. Finally, tchaikovsky’s “Swan Lake” unfolds, weaving a timeless story of young love, sorcery, and moonlit enchantment through rich harmonies and mesmerizing melodies.

Sept. 28-Oct. 1, 2023

Love is a Greater Labyrinth

Wharton Center for performing Arts, east Lansing

experience “Love is the Greater Labyrinth,” an uproarious spin on Greek mythology by renowned mexican author Sor Juana Inés de la Cruz, presented in english for the first time. this theatrical fusion of swashbuckling adventure, romantic farce and moral exploration revolves around teseo (theseus) confronting the monstrous minotaur. the true trial emerges after teseo esca pes the labyrinth — navigating the bewildering intricacies of love. Delve into a captivating narrative where fate and emotions entwine as one hero’s journey takes an unexpected turn amid ancient legends and contemporary themes.

Sept. 28-Nov. 8, 2023

94th Michigan Contemporary Art Exhibition

muskegon museum of Art

t he 94th m ichigan Contemporary Art

e xhibition continues a rich legacy of showcasing the work of m ichigan

artists, from talented beginners to accomplished professionals. A competitive show, the m ichigan Contemporary presents a look at the

issues, themes and materials inspiring today’s m ichigan artists. Featured media include painting, printmaking, drawing, sculpture,

ceramics, textiles, jewelry and installation. A visitor favorite, the exhibition engages, challenges and inspires conversation.

Sept. 29-30, 2023

Elgar’s Cello Concert with Sterling Elliott

Grand rapids Symphony

DeVos performance Hall

Acclaimed cellist Sterling elliott joins the Grand rapids Symphony on Sept. 29 and 30 to perform one of the most beloved cello concertos of our time, “elgar’s Cello Concerto.” Written by legendary british composer Sir edward elgar to capture the seismic shift of life in europe after the Great War, the emotional concerto has captured symphony audiences since its debut by the London Symphony Orchestra in 1919. elliott, 23, performed his first concerto at age 7 and has collected an array of honors since, including a Kovner fellowship at the Juilliard School and a 2024 Sphinx medal of excellence.

Oct. 6-8, 2023

Contemporary Visions

Grand rapids ballet

peter martin Wege theatre

Grand rapids ballet opens its 2023-2024 season with Contemporary Visions, a production featuring four standalone works from renowned choreographers Darrell

Grand-moultrie, Yuka Obamuschiana, penn y Saunders and Donald mcKayle. Contemporary Visions will feature world-premiere choreography from Grand-moultrie, whose resume includes the American ballet theatre and beyonce. Upand-coming choreographer Obamuschiana’s work will feature music by Austrian romantic composer Franz Schubert. Grand rapids ballet resident choreographer Saunders’ “berceuse” explores the space between classical and contemporary movement. revered contemporary dance figure mcKayle’s work will feature a brand new compilation of works called “Spirit of Women.”

Oct. 7, 2023 - Jan. 14, 2024

Underneath Everything: Humility and Grandeur in Contemporary Ceramics

Grand rapids Art museum

Underneath everything: Humility and Grandeur in Contemporary Ceramics features ceramic artworks that push the boundaries of the medium. exploring the expansive space from clay in its natural form to large scale that evokes a sense of grandeur and possibility, the exhibition features works by acclaimed artists, including celebrated mixed-media artist Ai Wei Wei, Haitian and belgian mixed-media artist Sally binard, and award-winning ceramicist Donté K. Hayes.

Cellist Sterling Elliott joins the Grand Rapids Symphony on Sept. 29 and 30. | prOVIDeD

Oct. 12-22

Judgment at Nuremberg

Grand Rapids Jewish theatre

Witness this powerful stage version of 1961’s Academy Award-winning film, “Judgment at Nuremberg.” Ernest Janning, one of the most influential German legal minds of the pre-war era, and other influential Nazis face a military tribunal in the second wave of post-war trials at Nuremberg. Issues at the forefront of this trial reverberate through history and challenge humanity to this day.

Oct. 13, 2023

Fry Street Quartet

Fontana music Chamber, Kalamazoo

Experience the celebrated Fry Street Quartet, lauded by the New York times as “a triumph of ensemble playing.” Renowned for pushing chamber music boundaries, they’ve captivated global audiences from Carnegie Hall to Jerusalem, with moving expressions and technical prowess. Winners of the Grand Prize at the Fischoff National Chamber music Competition, the quartet’s innovative exploration of string quartet dynamics promises a mesmerizing evening.

Oct. 13-14, 2023

The Abduction from the Seraglio

Opera Grand Rapids

Forest Hills Fine Arts Center

the Grand Rapids Opera performs “the Abduction from the Seraglio,” mozart’s infamous first operative success. the farcical romance set in a turkish harem tells the tale of Belmonte and his sidekick Pedrillo setting off to turkey to rescue Belmonte’s fiancé, Konstanze, and action-packed, laugh-filled antics ensue as the characters attempt to outwit their captors. Commissioned by the Austrian Emperor Joseph II, then-25-year-old mozart wrote the hit opera in less than a year. It first debuted in Vienna in 1782 to instant critical acclaim and has since been performed by opera houses around the globe.

Oct. 17, 2023

Black Violin: The Experience Tour miller Auditorium, Kalamazoo the Black Violin Experience tour showcases Grammy-nominated duo Black Violin, fusing classical and hip-hop into a mesmerizing musical

journey. Kev marcus and Wil Baptiste’s electrifying violin and viola performances — backed by Nat Stokes on drums, DJ SPS on turntables, and Liston Gregory on keys — defy genres. the concert bridges mozart, marvin Gaye and Kendrick Lamar, transporting the audience beyond musical and societal conventions.

Oct. 20, 2023-Feb. 25, 2024

Forest of Dreams: Contemporary Tree Sculpture

Frederik meijer Gardens, Grand Rapids to wnship

this exhibition provides an unexpected and enchanting view of trees depicted in various forms of sculpture, from wood to ceramic to metal and other materials. the exhibition entices viewers to contemplate trees as never before and features works from 15 world-renowned artists, including critically acclaimed sculptor Nick Cave, globally celebrated sculptor Emilie Benes Brzezinski and award-winning mixed media artist michele Oka Doner.

Oct. 20, 2023-Jan. 26, 2024

Ningaaseg

Saugatuck Center for the Arts

Internationally recognized Native American artist michael Belmore’s exhibition explores the many meanings behind the Anishinaabe word “Ningaaseg,” often used to describe an object settling, such as a rock settling into sand. Using the landscape of the Great Lakes, Belmore’s works draw viewers into the spaces between elements, where one ends and another begins.

Oct. 21, 2023

Madeleine Peyroux

St. Cecilia music Center, Grand Rapids

BBC International Artist of the Year and prolific jazz singer-songwriter madeleine Peyroux brings her transcendent vocal stylings to Grand Rapids this October on her world tour. Peyroux honed her musicianship by busking on the streets of Paris. today, she has nine studio albums and sold-out world tours to her name. In 2013, the New York times likened her dusky, enchanting vocals to the genre’s greats, including Billie Holiday, Ella Fitzgerald and Edith Piaf. At St. Cecilia music Center, Peyroux will perform hits from her 2004 international best-selling platinum album, “Careless Love.”

Duo Black Violin comes to Kalamazoo’s Miller Auditorium on Oct. 17. PROVIDED

Cannabis industry appears closer to banking access

SAFe banking Act may finally have the votes to pass

By John Schroyer

When it rains, it pours. And sometimes that’s a good thing.

On the heels of the “historic” news earlier this month that the Biden administration is poised to reschedule marijuana, U.S. Sen. Sherrod Brown told reporters that he believes the SAFE Banking Act may also be ready for prime time, sending another shockwave through the cannabis industry.

First, Brown — who chairs the powerful Senate Banking Committee — told Punchbowl News that SAFE could get a committee hearing “in the next six weeks.” Then he indicated to Politico that there is an “agreement imminent” on SAFE.

“We know that some members of the committee are going to vote no

CHILD CARE

From page 3

annually in tax revenues because of child care issues, while employers lose out on $2.3 billion from child care-related employee turnover and absenteeism, according to the report.

The report offers a stark take on Michigan’s precarious position since the state’s economy is dominated by manufacturing and health care industries, both of which have mostly in-person jobs that are not conducive to parent-friendly policies like flexible hours and remote work that have found success in the broader U.S. market.

At a press conference held Sept. 5 at the Grand Rapids Chamber, Leah Robinson, director of legislative affairs and leadership programming at the Michigan Chamber of Commerce, said this is exactly why the four groups came together to create a Michigan-focused report.

“Michigan is comprised of a unique workforce that begs for innovative solutions to child care, but that may also mean Michigan’s employees and employers have different needs than other states in order to solve our child care crisis,” she said. “To solve a Michigan problem, we need Michigan-specific data.”

Sobering statistics

The report noted the state ranks 39th in labor force participation rates, and its jobless rate was the nation’s 13th-highest in July, at 3.6%, according to the Bureau of Labor Statistics.

Additionally, a 2023 U.S. News & World Report ranking puts Michigan in 21st place for GDP growth among all 50 states, while Forbes’ 2022 state GDP growth report put the state in 28th place, with a 10year increase in output of 13.6% between 2011 and 2021.

As well, the report’s authors

regardless, but we think there’ll be something good that gets a good majority,” Brown told Politico about the SAFE Banking Act.

If that’s accurate, 2023 is shaping up to be quite a year for cannabis reform. But MarketWatch reported that SAFE ultimately might stall in the GOP-controlled House of Representatives even if it does get the thumbs-up in the Senate. House Republican leadership is “either agnostic or opposed” to SAFE, MarketWatch reported, giving the bill a slim chance of success until “after next year’s election.”

Still, some industry insiders were ebullient.

“Congress is basically trying to follow up on HHS’s historic rescheduling announcement,” said Tim Barash, CEO of cannabis software firm Dutchie. He said the political winds are finally realizing that polling has turned solidly in favor of cannabis reform.

“The government is catching up to where Americans already are,”

tracked other key statistics:

w A 2020 study found there are only child care openings for about 31% of the 560,000 Michigan children that need child care from adults other than their parents.

w In 2022, Michigan had a statewide poverty rate of 13.7%, ranking it 35th among U.S. states and territories for prosperity.

w Low-income families in Michigan spend on average 16% of their household income on child care, though 7% is the percentage deemed affordable by the U.S. Department of Health and Human Services.

w Across the state, 44% of Michigan residents live in a child care desert, with limited access to licensed providers.

w 63% of parents of young children missed work or class at least once in the past three months for child care-related reasons.

w 52% of parents attending school or work training needed to make a significant adjustment to their schedule because of child care issues in the past year.

w 14% of parents left a job in the past six months because of child care issues.

What’s being done so far

In 2019, the Grand Rapids Chamber created a statewide Michigan Childcare Coalition. Then along came COVID-19, which exacerbated the state’s labor shortage. In March 2021, the coalition, which includes child care providers, the business community and the state, created the MI-Tri Share program to address the growing gap.

Funded by public and private dollars, the program divides child care costs evenly between employees, employers and the state in coordination with regional “facilitator hubs.”

The program expanded in October and currently covers 59 counties.

Also in 2021, Michigan received

Barash added.

He noted that establishment politicians have realized that cannabis is actually now a winning issue with voters, essentially a 180-degree turn from where many of those same politicians were a few decades ago.

“The polls don’t just show that people want (cannabis reform),” Barash pointed out. “Voters are starting to say that it would change their vote for a candidate, which is really powerful.”

Just last month, CNN reported that one of the fastest-growing cannabis user cohorts is the elderly.

“A hundred percent of them vote, and they are using (marijuana) for a ton of medicinal reasons,” Barash pointed out. “It is dramatically more mainstream than it was just a few years ago. … It is clearly part of the political calculus.”

Barash also said that from Dutchie’s end — the company helps facilitate cannabis sales in more than 6,000 dispensaries nationwide — cannabis sales transac-

$1.4 billion in American Rescue Plan Act funds, including $560 million for child care stabilization grants and $800 million for child care and development block grants.

Then in May 2022, Gov. Gretchen Whitmer announced a roughly $100 million Caring for MI Future initiative to help entrepreneurs open 1,000 new child care programs by the end of 2024 or expand existing offerings, a move Whitmer’s office said would increase the state’s capacity by 105,000 children.

The effort included $51.1 million in grant funding to renovate and upgrade facilities to meet licensing and quality standards; $23 million in grants for startup programs; more than $11.4 million for recruitment, training and retention; and $14.3 million in business development tools to clear startup hurdles like licensing and zoning.

Other state-funded child care programs include Great Start Readiness, which provides free preschool to eligible 4-year-old children, and the Child Development and Care program that offers child care subsidies.

Manufacturers at the table

In a state dominated by manufacturing, OEMs and their suppliers across Michigan have a vested interest in solving the child care crisis.

To that end, Grand Rapids-based Wolverine Coil Spring Co. and Zeeland-based Plascore Inc. were among the first employers to sign on to the MI Tri-Share pilot.

Emily Babson, director of human resources at Plascore, said child care is a crucial business issue, noting that she temporarily left the workforce after having her first child because of the prohibitive cost and scarcity of child care.

“Since offering the Tri-Share program at Plascore, we have been able to recruit parents that most

tions are up, which should be an encouraging sign for the industry.

“We’re continuing to see price compression, for sure … but we’re seeing a lot more transactions,” Barash said of the macro-level.

Barash emphasized that he didn’t have firm numbers yet to share, but commented that the industry as a

likely would have not been able to re-enter the workforce due to child care reasons,” she said at the press conference. “We’ve also been able to retain employees who came to us after having another child or potentially a change in child care provider (who) were about to hand in their resignations. We were able to support them with this program and find another alternative.”

Another large manufacturer, Hemlock Semiconductor, which won state support last fall for its $375 million expansion that is expected to create an estimated 170 jobs at its facilities in Thomas Township, also signed onto TriShare in April.

Additionally, employers in Ottawa County — many of them manufacturers — pledged about $25 million to a separate public-private partnership announced last fall in which they would match the county’s commitment of $7.5 million in ARPA funds to create 1,000 child care slots by the end of 2025. The group of 10 participating employers includes Grand Haven-based Shape Corp., Holland-based Stow Co. and Jenison-based Nu-Wool Co. Inc., to name a few.

Next steps

According to the new report, Michigan lost approximately 26,000 residents between April 2020 and July 2021, and the state’s labor pool is aging steadily. The study’s authors said this makes finding solutions to the child care gap all the more important to ensure the remaining Michigan adults have access to the support they need to stay in the workforce.

Marcus Keech, director of government affairs for the Grand Rapids Chamber, said at the press conference the Michigan Childcare Coalition is currently focused on tackling a few next steps.

These include bolstering TriShare so it reaches all 83 Michigan counties within five years, and ex-

whole is still in a growth phase.

“The worst year of growth for cannabis is basically the best year of growth for the rest of the global economy,” Barash said. “I’d like to believe we’re seeing some shortterm pain for long-term gain.”

John Schroyer is a reporter for Green Market Report.

panding the income qualifications so employers can serve a larger economic pool of workers. Currently, the program subsidizes child care for people making between 200% and 325% of the federal poverty level, which in 2023 is $60,000 to $97,500 for a family of four. The coalition would like to expand that for employees that fall on both higher and lower ends of the income spectrum.

The coalition also is considering ways to help employers increase flexible workplace policies where possible. And they’re exploring ways to build and expand child care facilities and personnel capacity, including raising wages for workers without raising child care costs for families.

He said because the work is still underway within the coalition’s subcommittees, it’s too soon to reveal specific policy recommendations for achieving those goals.

“But it is with the 100% intention that it isn’t going to be expected to increase (child care providers’) wages based on increasing the rates for families; that’s something that we completely want to avoid,” Keech said. “Right now, we already hear it isn’t affordable for families, and so it wouldn’t fix or address any of the concerns if we just pass those costs onto families. So (it’s) how can we utilize other funding mechanisms, potentially state and federally, to help facilitate?”

Keech added one of the key reasons for creating the report was to help governmental agencies realize that investing just a fraction of their state resources in child care subsidies or programs like TriShare could yield solutions for recapturing that $576 million in lost tax revenue from child care-related issues.

Robinson, with the Michigan Chamber, added that the Michigan Childcare Coalition’s work groups are exploring legislative solutions and partnerships, and they plan to share specific recommendations at a future date.

U.S. Capitol Building. | pArttIme pOrtrAItS VIA UNSpLASH

Lakeshore economy bolstered by unusual trifecta

Unique mix allows region to ride out economic challenges

By Mark Sanchez

While Holland has a storied history and strength in manufacturing, the local economy also is backed by a vibrant agriculture and related food processing sector, as well as the tourism industry tied to Lake Michigan and the region’s cultural history.

Ottawa County and neighboring Allegan County — the city of Holland spans both — have consistently ranked among Michigan’s top agriculture producing counties.

In the most recent U.S. Department of Agriculture Census of Agriculture from 2017, Allegan County ranked second in the state

with $584.3 million in products sold, largely driven by livestock, poultry and related products at $407.7 million.

Ottawa County, one of the fastest-growing counties in the state with about 300,000 residents, ranked third at $506.6 million, including $146.4 million from horticulture, floriculture, nurseries, greenhouses and Christmas tree farms.

In tourism, Holland State Park on Lake Michigan has traditionally been one of Michigan’s busiest, drawing 1.5 million to 2 million visitors annually, while the annual Tulip Time Festival each May attracts thousands of visitors. An analysis that Hope College’s Frost Research Center conducted in 2018 found that the weeklong festival at the time generated $47.6 million in visitor spending.

The combination of manufacturing, agriculture and food process-

ing, and tourism has helped to provide the local economy with diversity, said Jodi Owczarski, president and CEO of the Michigan West Coast Chamber of Commerce.

“We really have three major economic drivers,” Owczarski said. “For most communities, they’re going to have one of those as being their main economic driver, maybe two, but to have all three of those is really a unique mix. That allows us to be more balanced and to really ride out some of the economic challenges that the nation goes through. It helps us to not receive the same kind of hit as other communities may take.”

Jennifer Owens, president of Lakeshore Advantage, the economic development organization for Ottawa and Allegan counties, thinks the thousands of tourists who visit Holland annually could serve as a potential source of new talent at a

time when communities struggle to cope with labor shortages.

She cited a recent study by New York City-based Development Counsellors International that indicated when people relocate, about 14% began by first visiting a place.

Owens hopes the upcoming Next Center incubator also can help lure talent to Holland.

When it opens in a little more than a year, the $15.3 million Next Center in downtown Holland will provide space for high-tech, highgrowth business startups and a new generation of entrepreneurs seeking to commercialize an innovation. The three-story incubator and innovation center also will offer space for second-stage companies and serve as the headquarters

for Lakeshore Advantage. The organization hopes to secure an anchor tenant that can play a role in the incubator’s success.

Through Next Center, Lakeshore Advantage wants to elevate and support innovation and entrepreneurism and cultivate a startup culture that can build on the deep legacy of manufacturing and other industries that have provided the base to the Holland area’s economy for generations.

“Our goal is that tourists that have an entrepreneurial or a startup bent, they’ll know where to go for startups when they come to visit and they’re also going to think of us as more than just a little tulip city,” Owens said. “We need more skilled people to continue to be successful.”

Chemical manufacturer to expand in Grand Rapids

New space will be used mostly for lab and R&D

By Kate Carlson

Chemical manufacturer Haviland Enterprises Inc. is in the design phase for adding about 10,000 square feet of space to one of its facilities in Grand Rapids.

The company is a global manufacturer and distributor of specialty and commodity chemicals, with a focus on pool and spa and water treatment chemicals, and has three facilities in Grand Rapids, as well as locations in Kalamazoo; North Bend, Ohio; and Phoenix, Ariz.

Haviland Enterprises is working with Plainfield Township-based Progressive AE Inc. to put together a design plan to demolish a portion of its facility at 421 Ann St. NW, and then add onto the existing structure.

“The expansion we’re looking at is primarily related to our laboratory and increasing size and capabilities from an R&D standpoint,” Haviland Enterprises President and CEO Meg Post told Crain’s Grand Rapids Business. “Our current facility has also aged and needs cosmetic upgrades, so this gives us a chance to make a great showpiece for our customers.”

Haviland’s location at 421 Ann St. NW currently has the capabilities to do lab sample-size productions and a full production run, but it lacks the ability to work at a scale between the two, Post said. The expansion would let Haviland work at

a level above a sample size, but smaller than a full production run, she added.

The additional capacity at Haviland comes at a time of growth in the pool chemicals industry globally. The sector, which had revenues of nearly $1.2 billion in 2021, is projected to expand at a compound annual growth rate of 4.6% through 2027, when the market is expected to reach nearly $1.6 billion, according to a report from research firm Market Growth Reports.

At Haviland, the company aims to add the laboratory space to the Ann Street location because it is located between its two other Grand Rapids facilities, Post said. If Haviland Enterprises’ board approves the expansion design, which it is expected to consider in December, then construction could start in the first quarter of 2024.

“I don’t envision a significant increase in employment right off the bat if we expand, but it would tie into longer-term plans to invest in the area,” Post said.

The proposed expansion would serve both of Haviland’s primary divisions, which provide chemicals for pool and spa treatment, as well as an industrial sector that focuses on surface finishing, wastewater treatment, commodity and contract manufacturing.

Your one-of-a-kind life, our one-of-a-kind guidance.

At Greenleaf Trust, we are committed to providing exceptional solutions for your one-of-a-kind needs. Our team is exclusively dedicated to providing the highest level of comprehensive wealth management services, trust administration, and retirement plan services. Client relationships begin at $2 million.

Financial security from generation to generation.

Holland is known for its tulips-related tourism, but the surrounding area also has a solid base in manufacturing and agriculture. | mIKE LOZON

Industrial parts supplier extends recent M&A streak

Depatie Fluid po wer makes deals for two California firms

By Kayleigh Van Wyk

A Southwest Michigan hydraulic parts supplier recently acquired and successfully merged two automation firms in California.

Portage-based Depatie Fluid Power Group purchased DST Controls Inc. and CKC Engineering LLC, which were both based in California’s Bay Area. The combined firms are rebranded as CKC Automation, with executives from the former CKC Engineering staying on to lead the business.

Grand Rapids-based NuVescor Group, an M&A firm specializing in the manufacturing sector, assisted with the acquisitions and merger.

NuVescor Managing Partner

Randy Rua said his team happened to have both DST and CKC as clients. The two firms had been acquainted and already worked together through some subcontracting, making the merger a “perfect fit,” Rua said.

“I always thought they should go together. I saw the fit between the two, but they were both at a

point where neither one would want to buy the other,” Rua said.

“It was the perfect fit for a merger, but they needed the capital to do it … that’s where Depatie came in.”

According to Rua, the entire process happened within a couple of weeks — an “aggressive” timeline that was made easier because DST and CKC already were prepared and wanted to do a deal, he said.

“It’s a lot to have happened all together: Acquire two companies and put them together all at the same time,” Rua said. “Normally that might be really difficult, but because the two companies knew each other so well and they were already prepared for a transaction and they wanted to do a transaction, it all just came together.”

More broadly, Rua sees automation as “a bright spot” in the midst of “interesting times” for the manufacturing sector. His team has been involved in multiple bankruptcy transactions outside of Michigan just this year.

“I haven’t done that in 10 years,”

Helping to close the talent gap

Rua said, citing cost increases and lower order volumes from automotive customers as drivers behind those bankruptcies. “Obviously something is going on when I’m selling that many companies out of bankruptcy.”

Despite recent growth and activity in automation over the last several years, the industry is still fragmented, Rua said.

“There are some big players, but there are a lot of smaller players — like the two companies in California — that kind of got into (automation) over the years, and now it’s become more mainstream,” Rua said. “So, we’re seeing a lot of acquisitions in that space because people are trying to roll up a lot of these smaller players. That way, they can provide a more robust service.”

The decision to purchase the two automation firms was a natural progression as Depatie expands beyond its traditional fluid power offerings, according to Ryan Thomas, general manager of Depatie Fluid Power Group.

The deal represents an invest-

ment in the future of both California companies as well as Depatie, Thomas said.

“The two companies have long histories of success and merging them will create more opportunities for growth and broaden relationships with customers,” Thomas said in a statement. “This market is project-based and requires longer sales cycles. We believe this will provide greater balance to the overall business in the long term.”

As well, the combined strength of CKC Automation will allow Depatie to leverage the full suite of capabilities to support all automation requirements for customers, according to Thomas.

Depatie was founded in 1956 and operates as a certified Parker Tri-Technology distributor of hos-

es, tubing, fittings, valves and other products for hydraulic and pneumatic power needs across various industries.

The company’s headquarters and Technology Center both are located in Portage. Additional locations include Grand Rapids, Holland, Mount Pleasant and Chesterfield Township in Southeast Michigan.

The recent addition of CKC Automation builds on several acquisitions and growth opportunities for Depatie. Most recently, the company acquired Hydraulic Systems in Jackson, Portage-based West Michigan Hydraulics, and West Branch-based J.E.M. Fluid Power. Hose & Automation of Fort Wayne, Ind., also operates as a wholly owned subsidiary of Depatie.

Portage-based Depatie Fluid Power Group recently acquired two automation firms in California. | GOOGLe Street VIeW

Kalamazoo group offered $6M donation

Funds would be used to bolster antigentrification strategies near event center

By Kate Carlson and Andy Balaskovitz

Catalyst Development Co. last month closed on four adjacent properties in downtown Kalamazoo for $4.27 million to set the stage for a $300 million, 8,000-capacity event center.

The company also is beginning to roll out its community benefits agreement attached to the project that includes awarding $6 million to a neighborhood organization to advance housing options and workforce development in the hospitality, entertainment and sports management sectors.

The property sale and funding for the Northside Association for Community Development mark the latest updates in the plan that was announced in March to accomplish a more than 25-year effort to develop a downtown Kalamazoo event center.

“I’ve always thought the event center would be something great for Kalamazoo and that it’d bring people in,” said Mattie Jordan-Woods, executive director of the Northside Association for Community Development. The proposed project would be located near the association’s boundary just north of downtown.

The $6 million from Catalyst Development will help advance the association’s five-year neighborhood plan that includes creating more housing options for residents and keeping them affordable to avoid displacement.

Jordan-Woods, who plans to retire in December after 36 years with the organization, said the company approached her in late August with the $6 million check, but she said she wanted to consult with banks and financial advisers before accepting the payment.

“We’re using anti-gentrification strategies, and that $6 million will assist with that,” Jordan-Woods said.

The association has a goal to build 21 homes in the coming years for affordable ownership opportunities. The community benefits agreement signifies a “very concentrated effort to look at how you really improve an area without displacing the people who were there,” Jordan-Woods said.

As well, Jordan-Woods said the event center will be crucial in creating local job opportunities and will provide space for local organizations to host events or for public meetings.

“I also think it will give the kids another sense of things that are in a big city without ever having to go to a big city,” she said.

The community benefits agreement also calls for:

Setting aside 20% of the food and beverage vendor space inside the facility for business owners from historically or economically disadvantaged communities

in Kalamazoo County.

Requiring all contractors that bid on construction work to have a diversity, equity and inclusion plan in place.

Working with local partners to identify business owners from disadvantaged communities to participate in the design, development, construction and operation of the event center.

Meanwhile, Catalyst Development closed on four adjacent properties last month after the Kalamazoo County Board of Commissioners approved a sale agreement in April and authorized the county board chairperson to sign the closing documents in July.

Property records show Catalyst paid $4.27 million to acquire the mostly vacant properties at 411 W. Kalamazoo Ave., 431 W. Kalamazoo Ave., 330 N. Westnedge Ave. and 452 Eleanor St.

Catalyst Development is part of Greenleaf Companies, which is chaired by William Johnston, the husband of Ronda Stryker, whose grandfather founded Stryker Corp., the $113 billion medical device and health care company.

Catalyst Development did not respond to a request to comment.

However, the company announced plans to construct the privately funded downtown event center and presented conceptual plans for a roughly 320,000-squarefoot event center to the Kalamazoo County Board of Commissioners on March 21.

The event center is expected to host more than 230 events, shows, concerts and community sporting events per year and is slated to be the future home of the Western Michigan University men’s hockey team, men’s and women’s basketball teams, as well as the Kalamazoo Wings hockey team.

While the intent is to cover all construction costs for the venue privately, Catalyst Development is considering “various funding sources,” including possibly establishing an additional lodging accommodations tax, according to a memo the development group filed with the city on March 17.

The Regional Event Center Financing Act — which was signed into law by Gov. Gretchen Whitmer at the end of 2020 — allowed Kalamazoo, Ottawa, Muskegon, Ingham and Washtenaw counties to create financing programs leveraging the hotel lodging tax. In order for a county to use the Regional Event Center Financing Act, 60% or more of the county’s hotel owners would have to vote for its approval.

Regional economic development organization Southwest Michigan First is part of the proposed event center design concept team, in collaboration with architecture firms TowerPinkster and Rosetti.

Family office completes first health care deal, will move HQ

Granger Health acquires California medical device firm

By Mark Sanchez

Granger Health, a new West Michigan-based investment entity targeting the health care industry, has completed its first acquisition by buying up the assets of a California medical device company.

A part of the Wyoming-based family office Granger Group of Companies LLC, Granger Health created the TracPatch Health LLC affiliate, which recently acquired the assets of Sacramento-based TracPatch Health Inc. The deal included a debt restructuring and relocating the company to West Michigan from Sacramento, Calif.

Granger Group Chairman and CEO Gary Granger first heard of TracPatch from a friend who told him that the company was experiencing governance and financial issues. After looking into the opportunity and talking to people who used the device, Granger decided to pursue the deal.

TracPatch, which developed a wearable device that uses sensors to remotely monitor a patient’s progress after orthopedic knee surgery, represents the start of the

company, said Jason Granger, who leads family office investments for the Granger Group.

“This is kind of the beginning of where we’re headed with our investment in health care,” he said.

The TracPatch device was designed to provide orthopedic surgeons greater insight into how well patients are recovering from knee replacements or ACL reconstructions in the knee. Future potential uses include for patients with hip replacements, lumbar spine surgeries, shoulder replacements, and posture and musculoskeletal issues.

Sensors monitor a patient’s post-surgery range of motion, how well the body moves and other measures, and they can tell whether a patient adheres to post-surgery stretching and exercise routines. A software analytics platform that works with the device can identify, flag and report issues to a surgeon, who can then adjust a patient’s post-operative care accordingly.

“If a patient is running into an issue, the doctor or their staff step in and have that patient in sooner,” Jason Granger said.

Granger Health has been working with large orthopedic groups in

Texas, South Carolina, Florida and Illinois on pilots to measure the data the device generates. TracPatch currently uses a subscription model to generate revenue.

Because of the potential to reduce complications and improve outcomes and costs, the company now aims to secure reimbursements from health insurers for socalled episodes of care for patients that undergo orthopedic procedures, which are growing in volume as the population ages.

“The best opportunities for reimbursement are in the area of the orthopedic arena,” Granger said.

Granger family’s deeper investment in health care, he said.

“What we do is we look at company opportunities where there could be an opportunity to add significant value, and that’s what we see in this opportunity with Granger Health starting off with TracPatch,” Granger said. “We have looked at segments that we think are going to be real value-add. This is the first of more to come. What you will see are some spaces that we would like to get involved with that we think we can add a lot of value.”

Granger Group started in 1997 as a commercial real estate development and management firm and developed projects such as Metro Health Village in Wyoming, now home to University of Michigan Health-West. The company got into investing with the formation of Granger Capital LLC in 2021.

Granger Health, which will manage TracPatch, became an LLC in March 2023, according to state records. Holly McAlpine, a product development and marketing executive, leads Granger Health as managing director.

Terms of the transaction were undisclosed.

Granger Health is currently considering two or three additional acquisition opportunities that include a Midwest physical therapy

The TracPatch is a wearable device that uses sensors to remotely monitor a patient’s progress after orthopedic knee surgery. | COUrteSY ImAGe

“If a patient is running into an issue, the doctor or their staff step in and have that patient in sooner.”

Jason Granger, Granger Group of Companies

Company envisions

a better battery for renewable storage

Firm aims to bring first product to market within a year

By Mark Sanchez

The founders of Holland-based Jolt Energy Storage Technologies LLC have an ambitious goal to change the way the world uses advanced battery technology.

The company wants to achieve that grand vision in an emerging and growing industry by bringing to market a new technology for storing energy using organic compounds, rather than metals such as nickel, cobalt, manganese, iron and copper that must be mined, processed and refined at great cost.

“A good way to make a dirtcheap battery is to make it out of dirt,” said Jolt Energy Chief Technology Officer Thomas Guarr as he and co-founder Jack Johnson led a tour of the company’s research lab on Holland’s north side.

Operating out of the Michigan State University Bioeconomy Institute housed in a former pharmaceutical research and development and pilot production facility near the north shore of Lake Macatawa, Jolt Energy Storage Solutions is among the techbased startups that want to become staples in the Holland area’s economic future.

If their research and development continue on the current trajectory, Johnson and Guarr aim to bring their first product to market within a year, and they say their company can do it for a fraction of the cost compared to what’s presently available to store energy.

The organic compounds Jolt Energy has been developing for five years for large-scale flow batteries are engineered to work with renewable energy sources such as solar and wind to deliver reliable power when needed and without interruption.

“Our focus is we want to change the world. We believe we’re doing something that will be positive for the entire world” both ecological-

ly and economically, Johnson said. “If we do this right, this will be something that changes the world to the green energy future that everybody’s been imagining. It will not happen without lowcost energy storage.”

Jolt Energy Storage Solutions aims to deploy the technology and energy storage system first through a pilot application in a residential or small industrial setting. Their plan is to convert existing metal-based rechargeable batteries to using organic compounds that cost less and are more readily available.

The company then wants to bring aboard a strategic partner to deploy the technology on a much broader scale and in settings such as commercial developments and industrial parks, Johnson said.

“We’ll start with the large utilities and then we’ll move down to solar farms, business parks, neighborhood associations and things like that,” Guarr said. “Eventually, we may be able to get it cheap enough for individual homes, but that’s a ways out.”

A report from McKinsey & Co. estimates that the market for battery energy storage systems will more than double from today to the end of the decade to a projected $120 billion to $150 billion by 2030 between utility, commercial and industrial, and residential applications.

Jolt Energy Storage Solutions has proceeded with research and development with the backing of grants and investment capital, including $2 million from a strategic investor. The founders are presently preparing to raise $5 million in a Series A capital round, Johnson said.

The company, which has six patents and a seventh pending, can deploy its storage system into existing energy-generating infrastructure with modifications that can nearly double the existing storage capability, Johnson said.

Johnson describes the organic compounds that Jolt has been developing as the “fuel” for energy storage, “while everybody else has the infrastructure.”

Wolverine offloading Hush Puppies IP in China, leathers

moves come amid recent flurry of activity for footwear manufacturer

By Kayleigh Van Wyk

Wolverine World Wide Inc. continues to transform its portfolio with the sale of its U.S. Wolverine Leathers business as well as a new agreement to sell the intellectual property of its Hush Puppies brand in parts of Asia.

The roughly $58.8 million Hush Puppies deal, which is expected to close in the coming weeks, gives the brand trademarks, patents, copyrights and domains in China, Hong Kong and Macau to current sublicensee Beijing Jiaman Dress Co.

With the deal, Wolverine and Beijing Jiaman Dress will provide “mutual engagement and brand stewardship of the Hush Puppies brand in the region” under a license and cooperation agreement, according to a news release.

Wolverine will retain ownership and continue to operate the Hush Puppies brand across the rest of the world.

“Our strategic approach in China, Hong Kong and Macau is to focus on our biggest brands, and

selling the Hush Puppies intellectual property in these countries is a part of this strategy,” Chris Hufnagel, president and CEO of Wolverine World Wide, said in a statement. “Hush Puppies remains an important brand in our portfolio, and we are committed to growing it through strong global licensing

nounced its intent to grant an exclusive license to Designer Brands Inc. for Hush Puppies in the U.S. and Canada, where DBI has been the exclusive retail partner for Hush Puppies since 2022.

Hush Puppies — which offers various styles of loafers, flats, boots and casual shoes — has been a division of Wolverine World Wide since the brand’s founding in 1958.

Wolverine also announced earlier this month the completed sale of its U.S. Wolverine Leathers business to footwear company New Balance for about $6 million. Plans to divest the Leathers business were announced in December of last year.

partnerships and expanding our connections with local consumers. We look forward to partnering with Beijing Jiaman Dress and to ensuring the global success of Hush Puppies.”

In February, Wolverine an-

The tannery contracts in the U.S. now are assigned to New Balance, a longtime customer of Wolverine. Alternatives for the non-U.S. Leathers business will continue to be explored.

“These transactions are the latest actions in our ongoing effort to reshape our portfolio and target our most meaningful opportunities,”

Mike Stornant, executive vice president and CFO of Wolverine World Wide, said in a statement. “We continue to streamline our organization and become more efficient, so that we can direct greater resources into our growth brands, pay down debt, and enhance long-term shareholder value.”

The brand portfolio changes also follow the recently completed sale of Keds to Designer Brands Inc., the parent company of footwear retailer DSW, and an announcement in May about the new strategic alternatives for the Sperry brand.

The deals also come after Wol-

verine recently reported disappointing quarterly earnings of $589 million in revenues, which fell more than 17% from the $713 million reported for the same period last year. The company also experienced widespread declines among its brands and business segments.

“Wolverine Worldwide maintains some of the world’s most recognizable and loved lifestyle and footwear brands, and transforming our business to bring the full power of these brands to life will be a key driver of our success,” Hufnagel said in a statement last month.

Wolverine World Wide has sold the intellectual property of its Hush Puppies brand to current sublicensee Beijing Jiaman Dress Co. COUrteSY OF WOLVerINe WOrLD WIDe

“These transactions are the latest actions in our ongoing effort to reshape our portfolio and target our most meaningful opportunities.”

Mike Stornant, executive vice president and CFO of Wolverine World Wide

Children’s Healing Center plans new $8.5M facility

Nonprofit will extensively renovate building near Calvin University

By Mark Sanchez

Eight years after opening on Grand Rapids’ east side, the Children’s Healing Center plans to relocate to a new home adjacent to the Calvin University campus.

The nonprofit Children’s Healing Center has acquired a building from Calvin University and plans an extensive renovation that’s scheduled to begin this month.

The $8.5 million project at a more accessible site at 1580 East Beltline Ave. SE will nearly double Children’s Healing Center’s space from 8,000 square feet at the existing facility on Fulton Street, which it leases from St. Thomas the Apostle Catholic Parish and School. The center plans to move into its new 15,000-square-foot home before the end of 2024.

“We are outgrowing our current space and have wait lists for programs and members that want to use our center,” said founder and CEO Amanda Barbour. “It will allow us to better provide a variety of services to our families.”

Children’s Healing Center provides a safe, clean place for children, adolescents, teenagers and young adults with cancer, autoimmune disorders or other medical conditions to play, learn and socialize. Barbour estimates the center has provided children more than 1.7 million minutes of play time since 2015.

She created and opened Children’s Healing Center in the fall of 2015. The center served about 30 families in its first year and has grown to serve more than 300 in the last year. Yearly visits to the Fulton Street location have increased from 500 in the first year to 6,000 last year, Barbour said.

Most of the children and families who use Children’s Healing Center come from West Michigan and markets such as Lan-

sing, Kalamazoo and Traverse City. Some have come from as far away as Detroit and Ann Arbor, where Children’s Healing Center is building a second location in nearby Ypsilanti that’s expected to open next spring.

To finance the new Grand Rapids facility, Children’s Healing Center has quietly raised $5.5 million, including a $2 million appropriation in the state’s 2022 fiscal year budget that “helped jumpstart the project” and allowed the organization to acquire the building by the Calvin University campus and nature preserve, Barbour said.

Lead contributors to the capital campaign include the Steve and Amy Van Andel Foundation, the Doug and Maria DeVos Foundation, and the Jandernoa Foundation of Mike and Sue Jandernoa.

Children’s Healing Center has requests to prospective benefactors that collectively total about $2 million, Barbour said.

The new home will include a half gym for fitness and group classes, sports activities and other programs; an expanded Exploratory Play for children; an art and snack room; dedicated space for teens and young adults for group activities and games; and community spaces for parents that will include a café, lounge and counseling room.

Ada-based Erhardt Construction Co. serves as the construction manager for the project, which was designed by Kalamazoo-based Diekema Hamann Architecture & Engineering LLC.

Barbour created Children’s Healing Center after she graduated from the University of Michigan and was diagnosed with stage 4 Hodgkin’s lymphoma. While undergoing treatment, she had an idea to help other people in similar situations who later had to isolate for an extended period and avoid public places to prevent getting sick when their immune systems were compromised.

Children’s Healing Center has quietly raised $5.5 million, including a $2 million appropriation in the state’s 2022 fiscal year budget, to finance its new home facility at 1580 East Beltline Ave. SE in Grand Rapids. | RENDERING COURtESY OF DIEKEmA HAmANN ARCHItECtURE & ENGINEERING LLC

Muskegon health plan again seeking members

Access Health hasn’t added subscribers in years

By Mark Sanchez

A $1.2 million appropriation in the state budget for the upcoming fiscal year enables Access Health to begin growing again and pursue new business.

The Muskegon health plan that offers basic coverage to small employers that have never been able to afford health insurance hasn’t enrolled new subscribers in years. The freeze came after losing about $2 million in state and federal Medicaid funding in 2018 that helped to pay the cost of health premiums for employees at participating small businesses.

Using the funding from the state, Access Health now wants to rebuild enrollments that at one time exceeded 1,300 people in Muskegon County as well as portions of neighboring Ottawa and Oceana counties.

Recently, Access Health has been focused on serving existing enrollees that total about 250 people at about 140 small businesses that typically are involved in lowwage sectors.

“We’ve kept on plugging along here, but this will allow us to really take on new businesses,” Executive Director Jeff Fortenbacher said.

“Now we’re going to get out there again and get back to what we did initially, which is how do we stabilize our small businesses and the entrepreneurs.”

Known as a three-share model, Access Health was formed 25 years ago and uses low-cost premiums paid by both employers and employees and Medicaid funding. The state cut the Medicaid share in 2018.

The new one-year state funding that starts Oct. 1 comes as smaller businesses operating in the post-pandemic era compete for workers in a tight labor market, and as a temporary expansion enacted early in the pandemic expires, forcing the state to remove some people from Medicaid eligibility.

Access Health could represent an option for small employers that lack employee health benefits and have low-wage employees who are losing their Medicaid coverage, Fortenbacher said.

“As they start to wind down the extended Medicaid, there’s going to a be a lot of people that are in that gap where they’re working and doing what they’re supposed to and trying to make ends meet, and now they’re going to be without health coverage again,” he said.

Crain’s Detroit Business reported this month that the Michigan Department of Health and Human Services has removed 80,564 Medicaid recipients from the program as it continues to roll back the federal expansion from the COVID-19 pandemic.

The state’s Medicaid population grew by approximately 700,000 during the pandemic under the federal Families First Coronavirus Response Act.

“Access Health’s comprehensive approach aligns perfectly with our ‘Make it in Michigan’ goals, addressing health care and economic mobility,” state Rep. Will Snyder, a Democrat from Muskegon, said in a statement. “Amid the uncertainty of post-pandemic Medicaid redeterminations, Access Health’s expanded model provides stability during transitions out of poverty by addressing obstacles to upward mobility.”

Access Health offers health coverage at a low monthly premium that presently costs $82 and includes primary care, hospitalization and behavioral health. The health plan comes with $10 copays for physician office visits and a $300 maximum out-of-pocket cost for inpatient hospitalization.

The coverage, with an emphasis on health wellness, care management and preventative care, is good at Trinity Health in West Michigan.

The state funding will allow Access Health to lower the premium that employees and employers pay to $72 a month, Fortenbacher said.

The coverage is designed to provide a bridge for small businesses that have been unable to afford a health plan for employees until they can transition to the commercial health insurance market. The

health plan mixes coverage with wellness components, education and classes on health and financial literacy for employees at participating small businesses, as well as programs that aim to address social determinants of health.

The passage of the federal Affordable Care Act in 2010, and provisions that phased in over a period of years, led to the funding cut for Access Health’s Medicaid share, Fortenbacher previously told Crain’s Grand Rapids Business. The ACA expanded Medicaid and introduced subsidies to help individuals who met eligibility requirements to buy health coverage, shifting the focus away from supporting three-share plans such as Access Health.

Even with the state appropriation, Access Health still needs the address long-term funding after losing its Medicaid share, Fortenbacher said.

“We need to solve this thirdshare problem,” he said. “Every dollar invested in Access Health has the potential to make a significant difference in the lives of our community members. With this funding, we can expand our reach, provide more comprehensive support, and truly contribute to the economic growth and vitality of Muskegon County.”

OPEN ENROLLMENT COMMUNICATION TIPS & TRICKS

program as a joint effort, displaying how their employer is a true partner in their success at work and beyond.

2. Understand Your Audience and How to Reach Them

Ask yourself: who needs this information?

If you’re changing your plan offerings, who is losing their current plan? Will that group need a more targeted piece of communication? Ensure you have a thorough understanding of the data and communicate accordingly. Further, anticipate any barriers to communication.

What is your population’s access to technology?

working and capitalize on it for open enrollment content.

4. Explore New Technologies

This can be scary! When it comes to the neverending world of communications technology, make it more approachable by learning what you can and then leaning into a part that you feel good about. You don’t need to bite off more than you need right away — start small and grow your dependence on the tool. And while artificial intelligence can improve accessibility and efficiency, it doesn’t mean human touch is no longer needed.

How you communicate your benefit offerings can make or break a company’s ROI. And things such as remote and onsite work arrangements, a multi-generational workforce, and quiet quitting all increase the pressure for robust communication practices.

Unfortunately, open enrollment often falls at a busy time of the year for HR professionals: fourth quarter. While their plates are full of end-of-year tasks, coworkers pile on 11th-hour questions about benefit offerings and enrollment.

A successful benefits communication strategy can help avoid — or at least mitigate — this problem while helping to ensure your bottomline experiences the value of your benefits investment.

To help navigate your upcoming open enrollment, we’ve highlighted four strategies and

questions you might consider for a successful benefits communication plan:

1. Tell a Story

Both at work and at home, we are exposed to more content than our brains can take in.

When it comes to communicating crucial benefits information, employers have to find a way to cut through the clutter. A compelling story around your benefits program will build an emotional connection that drives purpose and action.

One way to do this might be to match an offering with a true employee testimonial. When employees hear from a colleague how engagement with a specific offering impacted them, they’re more likely to invest and participate in the program themselves. Another story-telling option might be to frame your

Do employees have the same access to open enrollment meeting times? Are there needs for additional languages? Anticipating these headwinds ahead of time will ensure you deploy communications fitting for your specific team members.

3.

Pick the Right Channels

Your distribution methods should appeal to all employees. With five generations in the workforce, not every employee is going to receive information in the same way. People also need to see a message multiple times before they internalize it. Don’t be afraid of repetition and communicate your message across multiple platforms.

Additionally, consider your existing company best practices outside of open enrollment. Are employees used to receiving other crucial information during a daily huddle with their shift lead or manager? Focus on what is already

Whatever your open enrollment communication plan looks like, your overall employee benefits communication strategy should be ever-evolving and span beyond your pre-open enrollment window. At Lighthouse, an Alera Group Company, we offer communication tools and solutions that can help you lower overall health care costs and lift the administrative burden from your team.

Jeff Fortenbacher, Access Health. | COUrteSY pHOtO

Blue Cross plans to ease prior authorization process

Insurer would phase in changes over period of months

By Mark Sanchez

Following an emerging industry trend, Blue Cross Blue Shield of Michigan intends to ease prior authorization requirements for medi-

nior Vice President and Chief Medical Officer Dr. James Grant. He cited bariatric surgery, breast biopsies and heart valve replacements as among the examples of procedures that could no longer require prior authorization.

Blue Cross Blue Shield regularly reviews medical codes to see what procedures and surgeries to ease or drop from prior authorization requirements. The initiative aims to accelerate that process with a goal of easing anxiety for mem bers that can result from waiting to hear a decision on whether an up coming procedure or surgery they

need is covered.

“We’re taking a look at what are we seeing today that really doesn’t need to be going through this system,” Grant said. “We do this all of the time. We’re paying closer attention to it now. We want to get people the care they need when they need it. We don’t want roadblocks. I want doctors to take care of people. I want nurses to take care people.”

Health insurers routinely use Blue Cross Blue Shield processes around 87 million medical claims annually. About 2.5 million of them, or nearly 3%, go through pri or authorization reviews, accord ing to Jeniene Edwards, a registered nurse and vice president of utiliza

PLEASE HELP MAUI

Please

tion management at Blue Cross Blue Shield of Michigan. Most requests from doctors and hospitals are submitted electronically and approved quickly, often in seconds through an automated process, Edwards said.

The insurer’s goal is to eventually have 100% of prior authorization requests processed electronically.

Accelerating the review of prior authorization requirements also can ease the frustration and administrative burden for physicians.

Grant described a friend who’s with a 17-physican medical practice that has three medical assistants of staff “who do nothing but” prior authorizations. An anesthesiologist, Grant knows “firsthand what physicians and their teams experience every day” and said that Blue Cross Blue Shield wants “to minimize the amount of time physicians, nurses and their staff spend on paperwork, the computer and

“We want to get away from that kind of world,” he said. “If your doctor has made a decision that you need something, we don’t want you to be on the phone for two or three hours or piling reams and reams of paper. We want to get you the care that you need.”

Among physicians responding to an American Medical Association survey, more than four out of 10 said prior authorization “often” delays care for their patients and 14% reported the process “always” causes delays. Another 37% said the process “sometimes” delays care, according to survey results that the AMA released in March in which doctors also questioned the validity of prior authorization criteria.

Doctors told the AMA that prior authorization causes patients to abandon care plans and that onethird said they had a patient who experienced an adverse event because of delays.

More than one-third of physicians reported that they have people on staff who work exclusively on prior authorization requests and 88% said the burden of meeting insurers’ requirements was either “high” or “extremely high.” Doctors also reported that they and their staffs average 14 hours a week on prior authorization requests.

Trade publication Modern Healthcare recently reported that more health insurers nationally — including large commercial carriers such as UnitedHealth Group and Cigna, plus several Blue Cross and Blue Shield plans — have been scaling back prior authorization re-

The insurer also plans to expand what’s called a “gold carding” program that streamlines the prior authorization process and exempts physicians “who have a proven track record of making appropriate evidence-based decisions,” according to a statement.

As part of the ongoing review, Blue Cross Blue Shield already has eliminated hundreds of medical procedures that previously required prior authorization review, “and we can give that time back to clinical partners to care for our members,” Grant said.

The new policy covers more procedures and surgeries. | CRAIN’S FILE PHOtO

New taco restaurant coming to downtown Kalamazoo

Site is Barrio franchisee’s fourth in Michigan with more on horizon

By Abby Poirier

A build-your-own taco franchise is coming to downtown Kalamazoo as part of a $4 million renovation project at the former Chapter One Bank.

Barrio Tacos + Tequila + Whiskey, a national chain that has existing Michigan locations in Traverse City, Grand Rapids and East Lansing, plans to open an approximately 5,650-square-foot restaurant at 215 E. Michigan Ave. in Kalamazoo in early December.

Michigan franchisee Jake Hawley said the new location o ered a new opportunity for the brand as it involves fully gutting and retro tting a previously used space.

“It should be a pretty unique space with a lot of character, which I love,” Hawley said.

Barrio will take up the entirety of the ground oor of the former bank, which is undergoing a full renovation to update and improve the space, including adding new HVAC, electrical and plumbing systems, interior and exterior improvements and the addition of a full kitchen.

e Barrio franchise is spending

approximately $1.4 million on the renovation project and is shooting tentatively for a Dec. 1 opening for the new restaurant.

e building, which was built in 1886, was home to Chapter One Bank from 1960 to 2011 and has sat vacant since. In April 2022, the space was purchased by Kalamazoo-based real estate developer Treystar, which is planning a $4 million redevelopment project there.

e project, which involves property management group CSM Group and design rm Eckert Wordell Architecture, both based in Kalamazoo, is the rst in that city to use the Obsolete Property Rehabilitation Act (OPRA) as a tool for economic development, according to Treystar partner Terry Patterson.

OPRA provides exemptions for qualifying commercial and commercial housing projects undergoing rehabilitation that will lock in taxes at the property for 12 years.

Patterson added that the developer is currently looking for o ce users to occupy the rest of the building.

According to Hawley, the restau-

rant plans to use the bank’s former drive-thru, which opens onto Michigan Avenue and will comprise the majority of the dining space. Plans call for repurposing the drive-thru entrance as a storefront, with an exterior door and vestibule. e rear exit to the drive-thru, which opens onto a back street, will have a garage door that opens onto a patio space for outdoor dining and events.

e interior includes a circular bar where the bank’s teller windows formerly were located. e project also preserves the old bank vault, which proved too big and heavy to be moved. Instead, Hawley and project general contractor Construction Simpli ed, based in Grand Rapids, have opted to work around it.

“We were going to use it for an o ce but you can’t get a Wi-Fi signal and cable in there,” Hawley said. “It’s just this massive box. It actually ends up being directly in our kitchen. We were hoping to use it as a private dining space or something like that, but it ended up that it just had to fall right in the middle of our kitchen.”

e Kalamazoo location will be Ohio-based Barrio’s 20th overall and fourth in Michigan, where it rst opened a franchise in East Lansing in 2020.

Hawley said he’s been eyeing the Kalamazoo area for a while and looked at more than a dozen locations over the last year and a half before committing to the Michigan Avenue development.

“ e address is as good as it gets in Kalamazoo,” he said. “We just had to think outside the box as far as repurposing that space. We do really well in college towns, so with Western (Michigan University) being there and close proximity to downtown, it was very appealing.”

Hawley said the franchise came to Michigan with a “pretty aggressive plan” to open one restaurant a year. While Barrio is focused on organic growth, dictated by the opportunities that arise, Hawley said he sees no reason the franchise won’t continue its pace of one

opening yearly.

He’s unsure where those next opportunities will be, but acknowledged he has Detroit and Ann Arbor on his radar and has looked as far south as South Bend, Ind. He said he’s also not opposed to another northern Michigan location at some point to complement the Traverse City restaurant that opened in 2021.

In Michigan, the Barrio franchise employs approximately 180 people across all locations, with the new Kalamazoo site anticipated to add around 50 employees.

“We’ve got really good people that work for us, we’ve got a really good culture in our restaurants (and) we treat people the right way,” Hawley said. “At the end of the day, it’s a people-oriented business, and we’ve got the people and the team to grow pretty aggressively. We plan on continuing to do that for a while, always just looking for that next opportunity.”

ONE-ON-ONE WITH INDEPENDENT BANK – COMMUNITY-FOCUSED AND MICHIGAN-BASED SINCE 1864

Brad Kessel, President and CEO, Independent Bank

Independent Bank, headquartered in Grand Rapids, with approximately 5.1 billion in assets, is currently the largest bank headquartered in Michigan. Founded in 1864 as First National Bank of Ionia, it now has nearly 60 locations across Michigan’s lower peninsula as well as mortgage lending offices in Ohio.

Independent Bank President and CEO Brad Kessel sat down to answer a few questions about the Bank and what sets it apart.

What makes Independent Bank unique from other financial institutions?

For almost 160 years, Independent Bank has always put our customers, communities and employees first. We have built a foundation based on trust, both for our customers and within our company culture. Of course, we strive to provide our customers with the best products and services, as well as the latest in banking technology, but we believe that it’s truly the people who make the difference. Our team is comprised of individuals who bring a vast amount of knowledge, experience and expertise across all areas of the bank.

Our tagline at the Bank is “Be Independent,” and not only is this something that we share with our customers, but it is something that our employees whole-heartedly embody. They stand behind our mission to help our customers achieve their financial dreams and goals, and to help them Be Independent, whatever that may mean for them.

Recently, Independent Bank was recognized by the 2023 American Bankers annual ranking of community banks, as well as by Forbes Magazine as being a 2023 Best-In-State Bank. We were also honored to receive certification as a Great Place to Work, which was

a true testament to how much our employees value the work we are doing to help our customers and communities to Be Independent.

Why is giving back historically so important to Independent Bank?

We are extremely grateful for the communities that we have had the privilege to serve since 1864. It is our mission to serve our communities and provide more than just financial services, whether that is through volunteer opportunities, sponsorships, or various other community engagement activities. We care about our communities just as much as our customers.

Just one example of the ways our employees enjoy giving back is our annual “Be the Difference Day,” where all Independent Bank employees go out into our local communities and volunteer at non-profit organizations of their choice across Michigan and parts of Ohio. Employees select a non-profit that is special to them and spend the day helping to make a positive difference. Throughout the year, employees also donate funds to wear jeans on Fridays and this donation, along with a match by the Bank, is donated to the various non-

profits at which we volunteer.

Independent Bank is also honored to be part of the new Tom Fox Family JA BizTown® facility in Grand Rapids. This program allows fifth and sixth graders the opportunity to interact in a real-world business setting, where they apply, interview and work in a simulated town, giving them the opportunity to experience different career opportunities, including one at Independent Bank.

What types of products and services can a customer expect from Independent Bank?

Independent Bank is a Michiganbased community bank with local leadership and decision making. We pride ourselves on being a full-service

bank for personal, small business or commercial banking customers. We continuously work to offer the latest in banking technology and the best in banking products.

At Independent Bank, we understand that every customer is unique, with different dreams and goals. Our employees take the time to get to know our customers, and to learn what is truly important to them. We are then able to tailor our solutions to meet their individual needs, and to ultimately Be Independent. Member FDIC.

Barrio is opening a new restaurant in Kalamazoo. | MICKEY CIOKAJLO

Crain’s Forum explores di cult issues, seeks solutions

Michigan’s shortage of skilled workers and how to get more people interested in pursuing some form of post-secondary education.

Citizens returning to society from prison and how to get them reconnected to the workforce.

Extended power outages and how to make the state’s electric grid more reliable.

ese all are challenging issues facing us right now to which we do not have easy answers.

ey are also topics we explored deeply this year in Crain’s Forum.

Readers know well that Crain’s provides authoritative and enterprising business coverage, data for business intelligence, and live events that bring people together to hear from power brokers and trailblazers on important topics.

Crain’s Forum adds a layer of depth and complexity to our pro le as we explore issues of critical importance across the state.

most insightful perspectives on di cult issues from people who spend a lot of time studying them.

Michigan has fewer students pursuing post-secondary education compared to surrounding states and the national average. Not everyone needs a four-year degree, but in an increasingly high-tech economy, it’s vital that our young people understand that additional educational attainment leads to higher incomes, on average and over time.

e Crain’s Forum on skilled workers introduced us to a young man at Lansing Community College who is seeking his associate degree in information technology while also participating in a program to become an FAA-certi ed drone pilot, a pairing he hopes will help him in a cybersecurity career.

We heard from leaders in higher education and from the business community presenting their ideas for how Michigan could attract more people to attain the additional education they need for higher skilled jobs that pay more.

In-depth journalism of this nature takes time and talent, and we are fortunate to have generous donors who provide us with the resources to make this level of coverage a reality. e donations also allow us to make each Forum free online for all readers.

Our goal is to not just document the problem, but to bring together the leading experts to lay out potential solutions. We want to hear from multiple voices who are approaching these challenges from a variety of angles to provide citizens with the

In addition to our own research and interviews, we also ask leaders and experts to share their share perspectives in their own words in the form of guest commentaries that we publish in conjunction with the stories our journalists produce. We approach

this with the goal of o ering both an indepth and multi-layered report that advances the conversation and, we hope, moves us all toward a solution.

Earlier this month, we took a hard look at an issue that has been a signi cant challenge in recent years and overcoming it will prove crucial to Michigan’s future growth: the shortage of skilled workers.

As we move forward with other important topics, including an examination of the battle for the future of electric vehicles, it’s my hope we will raise the level of discourse on these vital issues while helping to point the way to solutions for our region and our state. COMMENTARY

EPA is putting up roadblocks to Michigan’s success

Michigan’s population decline is a critical issue that requires a whole-of-government approach to solve. Unfortunately, some federal o cials don’t seem to recognize the scale of the challenge we are facing, and they are advancing a regulatory agenda that is only going to make the problem worse.

While Michigan is still in the top 10 most populous states, we’re not growing. is is not news to state government, economic development agencies and NGOs that have been sounding the alarm bell on this issue for years. At the Home Builders Association of Michigan, our members have been acutely impacted by this trend of out-migration, and that is why we have advocated and been a strong voice for thoughtful policies that balance economic growth with environmental protection.

e Statewide Housing Plan released last fall provides a roadmap for improving and increasing our housing stock. And considering that 47% of all housing units in the state were built before 1970, we’re in serious need of an upgrade. For calendar

year 2023, our organization projects only 15,531 single-family permits being pulled across the state of Michigan.

However, problematic policies coupled with high costs make it di cult to retain residents and attract new ones. Both U-Haul and Atlas Van Lines ranked Michigan in the top ve states for one-way, out-of-state trips in 2022. We rank 49th in population growth since 1990, ahead of just West Virginia.

We’re ranked 32nd in median household income with the average household earning $59,600 per year, which is more than $6,000 below the national average. Home values are also declining: in 2000, the average home was worth 11% less than the national average; in 2020, that gap tripled to 34% according to a recent report from the Citizens Research Council of Michigan.

What the report doesn’t address, though, is a new e ort by the Environmental Protection Agency (EPA) to push through new air quality regulations that will make it harder — and costlier — to expand the state’s housing supply. EPA has traditional-

ly adhered to a schedule on which it reviews and proposes changes to the National Ambient Air Quality Standards (NAAQS). However, this year the agency tore up the rule book and proposed ratcheting up the regulations for a particulate matter called PM2.5, which is commonly found in construction zones, manufacturing operations and power generation.

e purpose of the schedule is to give builders and other industries a degree of regulatory certainty to guide equipment purchases, facility expansions and operational adjustments. Being in non-attainment of the NAAQS regulations can result in harsh consequences, from turbocharged permitting requirements to restrictions on federal infrastructure funding — placing new highway and transit projects in jeopardy. EPA’s own analysis estimates that numerous counties across Michigan would fail to meet the new PM2.5 thresholds in the proposed rule, setting the stage for non-attainment designations.

EPA’s proposal is especially concerning for the home building industry, as the new NAAQS rule would negatively impact manufacturers of the key materials we rely on most. e lumber, aggregates and insu-

lation industries have all submitted comments to the EPA expressing their concerns with the proposal. ese impacts are not abstract. A recent study from the National Association of Manufacturers found that the NAAQS PM2.5 rewrite threatens $7.3 billion in manufacturing economic activity and 26,900 jobs in Michigan alone.

What’s even more confounding about the proposal is that, according to the EPA, PM2.5 levels are down over 40% since 2000 and concentrations of NAAQS pollutants declined 78% between 1970 and 2020.

Michigan needs 190,000 housing units –single-family homes, apartments, and condominiums – to begin meeting the ambitious goals our leaders have set for reversing our state’s population decline. at won’t happen if regulators in Washington, D.C., push misguided proposals like the EPA’s revision of the NAAQS for PM2.5. Michiganders need to tell the EPA to stop putting up roadblocks to our success.

Dawn Crandall is executive vice president of government relations for the Homebuilders Association of Michigan.

While Michigan is still in the top 10 most populous states, we’re not growing.

Mickey Ciokajlo is executive editor of Crain’s Grand Rapids Business and Crain’s Detroit Business.

Matthew Aragones, 23, is taking classes at Lansing Community College to become an FAA-certi ed drone pilot. Employed as a computer support specialist, he now is taking classes toward a degree in information technology with a goal to make more money and expand his career options.

PEOPLE / COMPANIES ON THE MOVE

ARCHITECTURE

Spark 43 Architects

Spark 43 Architects is thrilled to announce the appointment of Colin Murphy as their new Partner, Experience Design. This strategic move not only bolsters the rm’s commitment to creating immersive and visionary spaces, but also underlines their dedication to cultivating top-tier talent. Murphy was most recently at Apple, where he worked on the future of Retail Experience. He has also led projects for clients such as Staples, Honda, and Keurig.

NONPROFITS

Hope Networks

Hope Network, a leading statewide organization that provides healthcare and life services to 34,000 people in more than 240 Michigan communities annually, announces the addition of Lynn M. Ferris and Sandi (Gabrielse) Judson to its Board of Trustees.

Ferris is a corporate leader, attorney and advisor with extensive experience in high-level government and corporate business positions. An advisor and board member to diverse nonpro t organizations, she has also been an Administrative Law Judge for the State of Michigan.

Judson, VP of Human Resources at BehlerYoung Company, is a highly collaborative, strategic HR executive who has served in leadership positions with Allied Finishing and Pine Rest Christian Mental Health Services.

BANKING & FINANCE

EHTC

West Michigan-based accounting, tax, and business advisory rm, EHTC, announces new Transaction Advisory Services (TAS) Partner, Ryan McCaslin. McCaslin will lead their TAS group, focused on buy-and-sell side nancial due diligence and consulting services. With over 20 years of experience providing accounting and advisory services to middlemarket clients, McCaslin’s specialties include quality of earnings reporting, working capital closing calculations, and review of purchase agreements.

NONPROFITS

Hope Networks Hope Network, a leading statewide organization that provides healthcare and life services to 34,000 people in more than 240 Michigan communities annually, announces the addition of Jennifer Jurgens and Gavin Mohr to its Board of Trustees.

Jurgens, CEO/ Founder, 1 Bold Step, is an accomplished sales and marketing executive specializing in nonpro t organizations and health advocacy. She is the recipient of the Susan G. Komen Excellence in Leadership Award and has twice received the Grand Rapids Business Journal’s Most In uential Women Award.

Mohr, EVP, Chief Financial Of cer, Independent Bank, is a highly skilled banking banking and nance leader, serving in executive roles with STAR Financial Bank, Yadkin Bank and Tower Bank & Trust.

DESIGN

Progressive AE

Progressive AE has named Senior Project Manager Seth Horton, PE, principal of the rm.

Progressive AE’s principals identify and develop future leaders–ensuring longevity for many years to come. As a subject matter expert for the transit and higher education markets, trusted client liaison, and business developer, they agree Seth exudes the criteria to serve con dently and successfully. “We are proud to join Seth in celebrating this career milestone,” said President and CEO Bradley Thomas.

NONPROFITS

Urban League

C. Dennis Triggs, II has been appointed as the Director of the Urban League’s Center for Employment and Economic Success, effective August 14. Dennis is a workforce development rock star, having worked in management and supervisory roles in sales, marketing, manufacturing and production. He most recently served as manager for the One Workforce program at GRCC, a $9.8 million comprehensive training program for occupations within the advanced manufacturing sector. A graduate of Cornerstone University with a degree in Business Management, Dennis says. “There’s something about helping support people to reach their goals and dreams which is fundamental to both me and the Urban League.”

DESIGN

To place your listing, visit https://www.crainsgrandrapids.com/ people-on-the-move/ or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

Progressive AE

Progressive AE has promoted senior design architect Jonathan Clark, AIA, LEED AP, EDAC, ACHA, to regional practice leader for health and wellness. “Jonathan excels at bringing complex projects to life, aligning the needs of both our clients and their patients,” said Bradley Thomas, President and CEO.

“We are excited to have him lead our regional health and wellness practice, both cultivating relationships with our long term clients and expanding the practice in the Midwest.”

NONPROFITS

Hand2Hand

Hand2Hand announces Jodi Joseph as the next Executive Director of the fteen-year-old nonpro t. Thirteen years ago, Joseph began volunteering at her church’s Hand2Hand program. Since joining the staff, she has served in many roles, most recently overseeing organizational growth and partnerships, helping reach 10,365 students across West Michigan at risk of weekend hunger. Hand2Hand needs businesses and individuals to help provide and pack food this school year. Learn more: h2hkids.org.

COMPANIES ON THE MOVE

To place your listing, contact Debora Stein at dstein@crain.com

MANUFACTURING

Verdant

Wyoming, MI 616.771.8326

verdantgraphics.com

Grand Rapids, MI, Sep 20, 2023 — Convivial Brands unveils Verdant, their newest brand, a modern print manufacturer. Event begins at 11:15 AM, 5965 Crossroads Commerce Pkwy, with ribbon-cut at 12 PM. Media invited.

Born to serve sister company, Design Design, Inc., Verdant is now a print leader. “Time to share our craft,” says CEO Don Kallil.

Verdant is more than just ink on paper. Boasting a 15K sq ft facility, Verdant houses a state-of-the-art Ryobi 8-color press all the way to vintage Heidelberg Letterpresses with ranged-offerings of products from postcards to packaging, all with Verdant’s unique touch.

Founded in 1987, Convivial Brands, including Verdant, seeks to make life better, and create unmatched value.

much higher interest rate. That’s going to cost me $150,000 more over the life of the loan.”

Yerock is one of thousands of marijuana employees in the state who are facing precarious personal banking relationships due to their employment. Weed is still an illegal Schedule I narcotic to the federal government and banks face major regulatory restrictions that make it challenging to provide even basic banking services to those in the state’s legal industry. Financial institutions face federal money laundering and fraud charges for banking with those conducting businesses in the industry, so they perform what is called “de-risking” their bankrolls by removing accounts that could be linked to illegal activity.

Efforts to ease banking for those employed by legal cannabis operations have been slow to materialize.

Congress has spent more than three years kicking around the SAFE Banking Act, which would provide certain protections to banks that choose to provide financial services to the legal marijuana industry. The law passed the U.S. House of Representatives in 2021 but has advanced no further.

The law is most commonly discussed to end exclusive cash use by the industry, which is forced to move millions of dollars of cash around daily, creating unsafe and untenable situations for marijuana companies. But it’s the personal banking relationships held by employees that are most vulnerable.

“Most stories we’ve been hearing around SAFE Banking is on the corporate need,” said Jenn Zielinski, government affairs manager for Common Citizen. “The narrative focuses on the cash and the crime. But, in reality, that’s not really an issue. We are no more crime-ridden than any other retail location. The lack of banking is really a burden to the industry’s workforce.”

Living or laundering?

In 2009, the U.S. Department of Justice, responding to states that were legalizing medical marijuana — Michigan legalized medical marijuana in 2008 but didn’t prop up a recreational industry until 2019 — sent a memo noting that marijuana remained an illegal narcotic from the federal perspective. But the feds targeting cancer patients and caregivers, those who grew and supplied marijuana to those patients, was “likely not an efficient use of federal resources.”

As more and more states began the commercial sales of marijuana — Colorado and Washington state

began selling recreational marijuana in 2014 — the Federal Financial Crimes Enforcement Network (FinCEN) issued a memo clarifying how banks could operate with marijuana businesses.

The memo created a set of guidelines so banks could remain in compliance that involved arduous record keeping, including filing Suspicious Activity Reports for every marijuana-related transaction. However, the feds would remain diligent, according to the memo, in prosecuting money laundering and fraud claims if any bank failed to comply.

In Michigan, a handful of local credit unions and banks saw an opportunity in banking marijuana business, believing they were able to handle the labor-intensive compliance reporting for a small stable of marijuana clients.

Mason-based Dart Bank and Fraser-based Live Life Federal Credit Union were early adopters in the state. Flagstar Bank is also known to bank cannabis here.

Live Life Federal Credit Union, which built a growing business banking marijuana by 2019, was slapped with a cease-and-desist order in February 2021, the first known federal crackdown on marijuana banking. The U.S. National Credit Union Administration issued the order alleging Live Life failed to comply with reporting

For mortgages, they are split into two camps — Freddie Mac and Fannie Mae, federally backed home mortgage companies that guarantee mortgages issued through lenders. Freddie Mac primarily works with large banks and Fannie Mae with smaller institutions. Freddie Mac will not back a mortgage involving cannabis employees, but Fannie Mae will, said Kelli Peterson, a loan originator for PrimeLending in Portage. Owners of marijuana companies are completely barred from mortgages from both institutions, Peterson said. She helped Yerock quickly secure a mortgage when Gateway balked at the loan.

Cutting the mortgage industry in half is costly for employees, Peterson said. For instance, cannabis employees can’t access Freddie Mac’s Home Possible program, which provides those with lower incomes a mortgage with a low downpayment and lower fees.

“Because Freddie won’t allow a loan to a cannabis employee, 50% of the industry is cut off from them,” Peterson said. “Home Possible is off the table. These people need homes, too.”

Erring on the side of caution

To avoid any possibility of money laundering or wire fraud charges, the big banks began im-

Congress has spent more than three years kicking around the SAFE Banking Act, which would provide certain protections to banks that choose to provide financial services to the legal marijuana industry.

procedures. Life Live was barred from opening new accounts until April 2021 and faced no other repercussions.

Dart Bank did not respond to inquiries about its marijuana services. Flagstar Bank declined to comment.

“There is a robust number of banks and credit unions across the state that are banking cannabis and cannabis businesses,” said Patricia Herndon, executive vice president of government affairs at the Michigan Bankers Association. “Whether an employee or a business, those accounts can still be considered a money launderer. There can be repercussions there. But there are banks that have made the investment to have compliance in place and they are the best matches for these employees.”

Large national banks have avoided marijuana banking because the size of their operations likely makes rigorous compliance much more difficult.

CHOO CHOO

From Page 3

won’t be a condition of the sale.

The Choo Choo Grill’s small dining area can hold about 20 people, which usually includes some of the restaurant’s many regulars.

“We have tons of regulars, and they’ve all expressed sorrow and

mediately purging accounts held by marijuana company owners and executives in the state.

In 2020, Bank of America terminated its banking relationship with David Morrow, CEO of the state’s largest marijuana company, Lume. Morrow said he had millions of dollars in various BofA accounts, including money-managed accounts and loans.

“They treated me like a coke dealer,” Morrow said. “All of my accounts, my wealth management accounts, everything was booted. I got into this business to help out Bob (Barnes, majority owner of Lume). The last thing I was looking for was to have my entire personal banking relationship get tossed out the window.”

Morrow said the bank he’d used for more than 20 years only noticed his paychecks were coming from the marijuana industry after he applied for a mortgage for an investment property and internal compliance auditors

flagged his accounts.

He has since moved his accounts to another bank in the state.

“Look, this cost me a lot of money, but it’s nothing on what it’s done to our employees,” Morrow said. “Ask anyone working in the industry and they’ve faced issues with banking. It’s all hypocritical. They go after people working in this industry, but what about the people buying weed? They are taking money out of their banks and buying weed. It’s discriminatory, because they go after the sellers, not the buyers.”

Paul Bugajski, director of operations for Common Citizen, faced a similar fate. In May, Huntington Bank terminated his personal bank account, his credit card account and his farm account for the small farm the family runs in Northern Michigan.

“We received a letter that said we had 22 days to get this straightened out,” Bugajski said. “We were loyal and had money in that bank for years.”

Bugajski, a former aviation manager at Eaton Corp., said the bank never fully disclosed why his accounts were terminated but after hearing from his peers, he suspects it was because he works in marijuana.

In a statement to Crain’s, Huntington said it must terminate any accounts associated with marijuana due to federal law.

“As a federally chartered institution, Huntington must adhere to federal law, including when it conflicts with any state or local statutes,” the Columbus, Ohio-based bank said in the statement. “At this time, marijuana remains federally scheduled as a controlled substance, and the manufacture and sale of marijuana remain illegal at the federal level. We continue to monitor federal lawmaking efforts on this subject.”

Hits from the gong

Yerock’s banking troubles didn’t stop at a mortgage. To clear her driveway of snow, she went to purchase a side-by-side utility vehicle and plow. The dealer, however, was unable to secure a loan for the vehicle due to her employment as a Six Sigma manager at Common Citizen. Her wife, who does not work in cannabis, had to drive up to the dealer and apply for the loan.

Two other employees at Common Citizen were denied financial assistance for hearing aids through Michigan Rehabilitation Services, a state program that assists employees with disabilities, said Amanda McCrary, chief human resources officer for the company. MRS is regulated by the federal Workforce Innovation and Opportunity Act.

In an emailed letter to McCrary, MRS wrote it is prohibited from “supporting services or employment goals associated with growing, selling, producing, handling, or distributing marijuana in any form.”

“People working in the industry can’t benefit from these programs,” McCrary said. “People who work for us are disproportionately impacted by the federal government’s stance on cannabis.”

A change is on the horizon, though.

The U.S. Department of Health and Human Services recommended earlier this month that the Drug Enforcement Agency move marijuana from a Schedule I to a Schedule III drug. Rescheduling the drug would immediately clear up marijuana business issues, such as ending the 280E tax, which prohibits marijuana sellers from writing off business expenses.

Rescheduling to a Schedule III, while not legalizing marijuana at the federal level, would also likely make it much easier for banks to enter the marijuana space for both businesses and employees.

“I don’t see a need for the SAFE Banking Act if this in fact becomes the official position,” Jonathan Havens, a cannabis attorney at Philadelphia-based Saul Ewing who previously worked for the FDA, told Politico earlier this month. “I’m not saying that all banks will want to jump into this space, but the need for safe harbors I don’t think exists like it does today.”

It’s unclear whether the DEA will move to reschedule marijuana and when. It’s also unclear whether rescheduling would impact federal assistance programs like the MRS hearing aid program.

Gov. Gretchen Whitmer has called for Congress to pass the SAFE Banking Act on several occasions. Employees at Common Citizen also met with Lt. Gov. Garlin Gilchrist II in August to discuss their banking problems. In addition, Common Citizen is working with the Michigan Chamber of Commerce to create a lobbying coalition in Washington, D.C. Another attempt to get the SAFE Banking Act passed is also afoot. Herndon said the bill is likely to move to a Senate committee this month.

Until then, cannabis businesses and employees will be forced to use local banks and credit unions for financial services.

“We’ve all been taken advantage of,” said Morrow. “We’ve all had to pay five times the fees or a higher interest rate. Everyone in this industry has a story. It’s gone on for years. We’re just regular people trying to do regular business in a legal industry.”

Dustin Walsh is a reporter for Crain’s Detroit Business.

disbelief at our (plans to sell), but they are also understanding,” Mack said. “We have met a trainload of good people here of good friends, customers and regulars.”

Choo Choo Grill has no set closing date, Mack said. The plan is to see what interest the listing spurs and go from there, he said.

The property has been on the

market since August and is listed by Vito Dolci Jr. from Walker-based Dolci Group Real Estate. The listing has generated some initial interest in the property, which sits on a highly traveled corridor located north of Medical Mile and downtown Grand Rapids, Dolci said.

“It’s definitely going to be sad to see the restaurant go, but I

think it’s a testament to the area that there is some additional housing and businesses going in,” Dolci said.

“That place is growing and it’s a great time for this corner lot to help add more housing.

Location-wise, this is perfect for redevelopment.”

Indeed, the Choo Choo Grill sits at the south end of the Cres -

ton neighborhood and business district, where developers are in various stages of large mixeduse developments. That includes Franklin Partners’ plan to repurpose the former Display Pack building with 526 apartment units, a 72-unit project at Plainfield and Quimby Street, and the four-story Lofts on Grove project.

although the future of office work isn’t entirely clear, we do know it needs to be flexible — for the health of employees and the good of the organization,” DeKam said. “It is time for a new shape.”

The cost to maintain the building is also becoming “financially unsustainable,” DeKam said.

“The building at 1700 28th Street is too big and doesn’t have flexibility for the future,” DeKam said. “The property, especially being at the 28th Street and Kalamazoo corner, is also likely worth more to someone else. Tapping into the existing value of the land and moving — either to another location on the existing property or to a site nearer

connected organizations — would open the possibility for more shared spaces and resources.”

The building on the roughly 11acre property has received various additions over the years, said Doug Taatjes, the listing agent for the property at NAI Wisinski of West Michigan.

“This could serve a developer who combines some outlots and potentially reusing the building in different ways, or it could be a corporate headquarters for someone else,” Taatjes said. “It’s got some great spaces in it and a beautiful atrium, outdoor patio, great meeting rooms and the warehousing is excellent.”

The Christian Reformed Church’s membership has mostly been declining for the past few decades since it peaked at 316,415 members

that took a broader approach to attracting and supporting businesses.

in 1992, according to a report from DataWise Consulting LLC that pulled from CRCNA yearbook information. The denomination’s membership was at an all-time low of 204,664 as of 2022.

The denomination also has received pushback in recent years for its stance on LGBTQ issues, and for codifying these views in a June 2022 vote by denomination leadership that approved a list of “sexual immorality” that included “adultery, premarital sex, extra-marital sex, polyamory, pornography, and homosexual sex,” according to reporting from Christianity Today. The vote occurred at the CRC’s annual synod meeting at Calvin University after multiple days of debate.

Despite the membership decline, DeKam said the decision to sell the 28th Street building was driven by

the relocation last year of World Renew, a nonprofit operated by the denomination, and a change of workflow spurred by the pandemic.

“(World Renew) leaving took away a significant portion of our office space needs, so now we’re just using a small fraction of the building,” DeKam said. “Not everyone realizes the inefficiencies of that. We see this (decision) as a very positive thing as a denomination, and there are better ways to utilize this space.”

The decision to sell the building was part of a proposal that the U.S. ministry board approved to adapt to the changing needs of the denomination. Staff are in the early stages of looking at other locations to serve the denomination, DeKam said.

The proposal approved by the board states that the new space would follow universal design stan-

dards and be accessible to all, and contain spaces designed to be more flexible for users. The proposed smaller, more efficient space would be designed to be more adaptable to changing workplace needs.

“To adopt a phrase borrowed from a local church, the new workplace will ‘dignify the ordinary,’ by clearly communicating to staff, visitors and passersby that the people working and gathering there have a meaningful and significant job to do and a well-designed and earthfriendly place to do it in,” DeKam said. “But, in keeping with the character of the denomination, it won’t be showy or extravagant. Instead, the space should communicate stewardship and an overall value of ‘every square inch’ being intentional so that our part of God’s kingdom work can be accomplished.”

organization for Ottawa and Allegan counties. The organization hopes to secure an anchor tenant that can play a role in the incubator’s success.

Through the Next Center, Lakeshore Advantage wants to elevate and support innovation and entrepreneurism, and to cultivate a startup culture that can build on the deep legacy of manufacturing and other industries that have provided the base to the Holland area’s economy for generations.

“We create things and we make things here, and this community isn’t afraid of evolving,” Lakeshore Advantage President Jennifer Owens said. “What we make has changed significantly over time, but our community is always evolving. So, when I look for the future for us, what I see is continuing a strong future of product manufacturing, automation and innovation.”

Lakeshore Advantage’s own formation 20 years ago is indicative of the fundamental approach that business and community leaders take toward issues with a focus on “growing and evolving the next generation of employers,” Owens said.

Economic development in the Holland area had been led by the former Holland Economic Development Corp., commonly known as HEDCOR, which started in the early 1960s and developed and managed large industrial parks on the north and south sides of town.

By the late 1990s, as HEDCOR approached its 40-year mark and the industrial parks were getting full and running out of land, local business leaders envisioned a new economic development organization

RIVERFRONT

From page 3

allow the Grand Rapids Fire Department to consolidate several other uses at the new facility.

The fire department plans to use a portion of the $35 million in one-time funding that was included in the 2023-24 fiscal year state budget for the relo -

“We don’t wait for other people to help us. We fix problems on our own,” Owens said, citing as an example the millage voters in Holland approved a year ago to provide affordable, reliable high-speed internet service in the city. “We will continue to make sure that our economic portfolio is diverse and has robust industries so that as the economy changes, we can weather any storm that comes our way.”

Searching for what’s next

In citing area business leaders’ “commitment to paying it forward and giving back,” Owens notes that several large local employers were quick to support the Next Center’s development.

The forward-looking perspective that has driven and sustained the Holland area’s economy for generations comes from what she and others describe as a strong work ethic and an entrepreneurial culture.

“There’s no complacency,” said Tom Guarr, the co-founder and chief technology officer at Jolt Energy Storage Solutions LLC, a company that’s developing batteries to store energy using organic compounds, rather than metals, as their base.

“Yes, we make things, but we’re always looking for a better way to do it. You see that in all the industries around here. ‘How do we get better?’” said Guarr, who previously worked for nearly 18 years as vice president at Gentex Corp., based in neighboring Zeeland, that decades ago invented and remains the world’s largest maker of auto-dimming electrochromic mirrors.

That “entrepreneurial mindset” has local leaders “always looking for the ‘next’ and adapting to the future

cation project.

Relocating to Pannell Street will serve the fire department for the next 50 to 75 years, Brown previously told city officials.

The property at 1101 Monroe Ave. NW is one of six riverfront opportunity sites that have been identified for potential redevelopment opportunities in the city’s GR Forward investment plan and strategy, as well

needs,” said Jodi Owczarski, president and CEO of the Michigan West Coast Chamber of Commerce and a lifelong Holland resident.

“It’s continuing to develop what’s needed today and for the future,” Owczarski said. “I think it’s quite unique the way that the leaders in this community come together intentionally to look at what are the issues that this community is facing now and what do we anticipate coming in the future, and how are we going to be prepared to address that. Instead of people thinking about that in silos, we’re doing it more holistically so we can be as prepared as we can be and continue to sustain this community.”

Investing in community

Holland’s robust manufacturing base accounts for about 30,000 of the more than 73,500 jobs in the local economy. The sector historically has consisted largely of office furniture makers that include homegrown global industry leaders such as Haworth Inc., MillerKnoll Inc. (formerly Herman Miller Inc.) and Trendway Corp. (now part of Fellowes Brands) and automotive suppliers such as Gentex, plus remnants of the former Prince Corp. and Donnelly Corp., both of which were acquired years ago.

The manufacturing sector today includes automotive battery makers, such as the large LG Energy Solution Michigan lithium-ion battery plant on the south side of town that’s presently undergoing a $1.7 billion expansion. The larger manufacturers are joined by numerous small and mid-market companies and a service sector that has grown around the industrial base.

Perhaps the homegrown manufacturer that typifies the area’s pay-

as the River for All plan.

Public greenspace and mixed-use projects, including the reuse or renovation of the historic water building that is also located on the site, are development possibilities laid out in the plans.

As well, the site could potentially link to the city’s river trail network and add river access, flexible plaza spaces or a play area.

it-forward approach was the former Prince Corp., which was founded in 1965 by the late Edgar Prince, the father of former Education Secretary Betsy DeVos and defense contractor Blackwater founder Erik Prince.

Prince Corp. grew to become Holland’s largest employer by the 1990s and innovated many of the interior automotive components that are staples in vehicles today, including vanity sun visors, cupholders and center consoles, as well as the HomeLink system and other electronic features.

The family sold the automotive operations to Johnson Controls Inc. for $1.35 billion in 1996. JCI later sold the Holland operations when it divested its automotive business, a deal that included the Meadowbrook plant that opened in 2010 and produces lithium-ion batteries for hybrid and electric vehicles as part of automotive supplier Clarios LLC.

Since the company wanted to recruit design and engineering talent to Holland to become a global automotive supplier, the Prince family became heavily involved in revitalizing downtown Holland.

Downtown Holland today remains a lure for attracting talent to the market, Owens said.

“If you look at talent and where people want to be, that is a requirement to have a thriving downtown and area where people can be part of it,” she said. “It’s much harder to attract and retain talent if you don’t have that downtown center.”

The downtown revitalization began as developers pursued development of a shopping mall just north of town in 1988. Owczarski recalls that at the time, the fear “was that downtown was going to turn into a ghost town.”

However, Holland became the financial and cultural heart of the

community after years of investment and development that continue today.

“Our downtown never has an empty storefront. Meanwhile, malls have gone almost extinct at this point and our downtown just thrives,” Owczarski said. “When a downtown is healthy, it just sends a message to the community and to visitors alike that this is a healthy, vibrant, thriving community.”

Prince Corp.’s example

Part of Holland’s success today comes from a generation of business leaders who cut their teeth early in their careers working at Prince and learned a culture predicated on biblical principles, servant leadership and innovation, as well as service to clients, community and employees.

A generation of young executives who worked at Prince and JCI went on to own or lead many local businesses, carrying on the company’s legacy.

“It’s a community thing, not just a business thing, but it does certainly show up in the metrics with business and entrepreneurs and innovation,” said Rodger Price, a onetime executive at Prince and JCI who joined the company in 1989.

Today, Price runs Leading by Design, a leadership coaching and executive team development firm he formed in 2014 and sold in January to Disher Corp., a Zeeland-based consulting and product development company.

“We learned that this is not about just making money. This is about making a difference,” he said. “You’re not doing it just to get a big boat. You’re doing it to try to make a difference in our community and in the world.”

New West Michigan manufacturing CEO takes on automation from the supply side

From the Olympic Games to the automation shop floor, longtime manufacturing executive Dave DeGraaf’s new role at JR Automation builds on decades of leadership and innovation. The Holland-based subsidiary of Tokyo-based software giant Hitachi Ltd. this summer tapped DeGraaf as its new CEO following the retirement of former CEO Craig Ulrich. Building on a career in manufacturing, mobility and energy storage, DeGraaf came to JR Automation after serving as CEO of Holland-based Volta Power Systems. DeGraaf also had a career with the U.S. Air Force that spanned several years and has held leadership positions at Johnson Controls in Holland and abroad, France-based Faurecia’s North America operations, and Grand Rapids-based Gill Industries. DeGraaf recently spoke with Crain’s Grand Rapids Business about his personal and professional experiences as well as his vision for JR Automation’s future. This interview has been condensed and edited for clarity.

|

Kayleigh Van Wyk

Where did your career journey start?

After graduating high school, I went to the United States Air Force Academy, and that’s where I had my education and earned my bachelor’s degree. I thought I was going to be a career officer in the United States Air Force. Serving my country was something that I was instilled with growing up as a young man in a patriotic family. My dad was in the Army and my older brother went to the Air Force Academy as well. But then my career path was a little bit different.

What happened from there?

When I went to the Air Force Academy, I fell into a sport my sophomore year called team handball, which is like water polo on land. By the time I graduated from the Air Force Academy, I was asked to join the U.S. national team. I had orders to go to Minot, N.D., so I spent my first year as a second lieutenant in Minot. But while that happened, the handball team moved from Colorado Springs to Atlanta to get ready for the 1996 Summer Olympic Games.

Unfortunately — probably more fortunately — my unit in North Dakota shut down. I was able to get a new job and worked an assignment down toward Atlanta to be close to the team. Long story short, the Air Force provided me the opportunity to train and compete globally with the U.S. national team. I competed all over the world in the Goodwill Games, the Pan Am Games and the 1996 Olympics.

What an incredible opportunity. How did you end up back in West Michigan?

When I was in Atlanta, I met my wife. We’ve been married almost 25 years now. She originated from West Michigan, and while I grew up in Spring Arbor, my parents originated from West Michigan. So you had two West Michigan people who met down in Atlanta, and our families had a lot of the same friends and connections. We ended up getting married and separating from the Air Force to come back home to West Michigan. That’s where I started

my manufacturing career as a program manager at Johnson Controls.

During your tenure at Johnson Controls, you spent some time in Europe running an account there and then transitioning to the power solutions side of the business. How was it living and working in another country?

I was in Europe from 2008 to 2012. When I went over to the power solution side of the business, I did an extension in Germany and then moved to Hanover, Germany, and ran our advanced energy side.

Once you leave the comfort of your homeland and go to a different country and have to live and interact with it, it’s much different. That brought a whole new level of experience and I would say intimacy with German culture. For expanding myself personally and professionally, it was immensely beneficial.

You most recently served as CEO of Volta Power Systems, which was connected to your time at Johnson Controls, right?

Volta Power Systems reached out to me, and the concept of Volta started in my division at Johnson Controls in the lithium-

ion space. There’s a gentleman who worked for me that had an idea to take lithium ion battery packs and bring it to RV, marine and industrial applications. This startup is in Holland, and I worked there for about two and a half years and had a lot of great progress there.

Now that you’re at JR Automation, what’s your vision for the company’s future?

The big thing is continuing to develop and evolve the vision that Hitachi has for JR. We’re continuing to grow and serve more customers. We’re into data collection more and more right now, but we collect a lot more than what gets analyzed and compared. That’s where artificial intelligence starts to come into play — to look for trends, analysis, predictive maintenance. The teams at JR are immensely talented, and they come up with some really creative solutions to problems. There’s a very exciting future for JR.

How have you seen the overall demand for automation solutions play out at JR Automation? Automation is always a fascinating subject. As the workforce is projected to decline, more companies are going to have to go to automation. At any one time with our 23 sites globally, we’ve got about 300 to 350 projects that are active. Once a project ships out and goes to the customer, another one’s hitting the floor. It’s exciting to be on the supply side of automation now versus being on the customer side.

What is life like for you outside of work?

My wife and I have two sons — our oldest is 22 and our youngest is 20. In our free time as a family, we’ve enjoyed water sports and water activities. Boating has always been a part of our life. I like upland hunting in the fall, and we have a place up north and plan to get a couple snowmobiles for the winter. Another thing I’ve gotten into is Lake Michigan fishing with a buddy of mine. I try to keep things fun and active.

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 executive Shelly Keel, shelly.keel@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

CRAIN’S CONTENT STUDIO

Senior director of Crain’s Content Studio Kristin Bull, kbull@crain.com

Crain’s Content Studio manager Clare Pfeiffer Content marketing specialist Allie Jacobs

PRODUCTION

Vice president, product Kevin Skaggs Product manager tim Simpson Prepress/production director Simone Pryce CUSTOMER SERVICE (833) 830-7446 toll free (845) 267-3031 local line (for any foreign calls) customerservice@crainsgrandrapids.com

Crain’s Grand Rapids Business is published by Crain Communications Inc.

Chairman Keith E. Crain

Vice chairman mary Kay Crain

President and CEO KC Crain

Senior executive VP Chris Crain

Chief Financial Officer Robert Recchia

G.D. Crain Jr. Founder (1885-1973)

Mrs. G.D. Crain Jr. Chairman (1911-1996)

Editorial & Business Offices

1155 Gratiot Ave., Detroit m 48207-2732; (313) 446-6000

Volume 40, Number 16

Crain’s Grand Rapids Business (ISSN 2836-7723) is published biweekly, with an extra issue in may, October and December, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit, m 48207-2732. Periodical postage paid at Grand Rapids, michigan.

© Entire contents copyright 2023 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

Subscriptions: $59 per year. Advertising rates and specifications at www.crainsgrandrapids.com or by request. Crain’s Grand Rapids Business does not accept unsolicited contributions.

Postmaster: Send address changes to Crain’s Grand Rapids Business, 1155 Gratiot Ave., Detroit, m 48207-2732.

Dave DeGraaf, CEO of JR Automation in Holland.

Automation is always a fascinating subject. As the workforce is projected to decline, more companies are going to have to go to automation.

Tomorrow is happening right now.

Tomorrow is on.™

Now, more than ever, the world needs safe, secure, sustainable and affordable sources of energy. That’s why Enbridge is modernizing our systems and advancing new technologies and lower-carbon solutions like renewable natural gas and hydrogen power. Putting in the work today, we’re bridging to a sustainable energy future.

tomorrowison.com