Crain's Grand Rapids Business, Nov 27, 2023

CRAINSGRANDRAPIDS.COM I NOVEMBER 27, 2023

‘Feels like the worst time’ for IPO: Acrisure CEO Growing insurance brokerage focusing on AI-driven business model instead

By Rachel Watson

BAMF Health formed a strategic partnership with GE HealthCare Technologies Inc. to support deployment of medical technologies for an advanced cancer treatment. | COURTESY PHOTO

BAMF HEALTH, GE HEALTHCARE ADVANCE TECHNOLOGY USE Partnership opens national pathways to cancer treatment

By Mark Sanchez

Partnering with GE HealthCare Technologies Inc. could accelerate Anthony Chang’s vision to provide far greater access to an advanced cancer treatment he launched in Grand Rapids.

Under their new strategic partnership, Chang’s BAMF

Health will support the Chicago-based GE HealthCare’s deployment of medical technologies behind theranostics that use advanced medical scanners and radiopharmaceuticals to diagnose and treat cancer patients.

In the era of molecular medicine, the emerging technology combines with artificial intelli-

gence software to precisely treat patients.

GE HealthCare in turn can connect BAMF Health to health systems across the country that want to develop a theranostics clinic and can benefit from the company’s expertise with their See PARTNERSHIP on Page 29

The CEO of Acrisure LLC is in “no hurry” to take the multibillion-dollar insurance brokerage and fintech public as executives aim to double revenue in the next few years and global economic and geopolitical uncertainty persists.

Acrisure co-founder, chairman and CEO Greg Williams addressed the company’s outlook at a sold-out luncheon of the Economic Club of Grand Rapids on Nov. 13.

Citing recession fears, high interest rates, military conflicts and “plummeting” business valuations in certain sectors, Williams said “it feels like the worst time in the world to ever think about going public, so we’re not.”

Bloomberg reported in June that Acrisure had been interviewing investment banks about a possible initial public offering in 2024. Williams later told the trade publication Business Insurance that he was “leaving all options open” and that Acrisure would “probably” go public at some point.

After the Econ Club event, Wil-

Acrisure CEO Greg Williams speaks during a presentation to the Economic Club of Grand Rapids on Nov. 13. | RUSSELL CLIMIE, TIBERIUS IMAGES

liams told Crain’s Grand Rapids Business that the company is still “preserving optionality” for such a move, “but we’re in no hurry to do anything. … There’s no time frame of any sort.”

Instead, Acrisure — which employs 17,000 people globally — is focused on an artificial intelligence-driven transformation of its business model that is shifting See ACRISURE on Page 28

Meijer enters into labor negotiations Union buoyed by recent strong bargaining gains elsewhere

By Abby Poirier

Leaders at United Food and Commercial Workers Union (UFCW) Local 951 think the timing should favor its more than 25,000 members in Michigan who are negotiating a new contract with Walker-based supercenter retailer Meijer.

Following high-profile strikes and historic gains secured by the

United Auto Workers (UAW), which negotiated preliminary contracts with the Detroit Three automakers, and the national Screen Actors Guild-American Federation of Television and Radio, local union members remain bullish on their prospects for a favorable negotiation with Meijer.

“Labor has got some real momentum that I think is heading in the right direction for us,” UFCW

VOL. 40, NO. 24 l COPYRIGHT 2023 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

P001 CGR 20231127.indd 1

Local 951 President John Cakmakci told Crain’s Grand Rapids Business.

As the union approached the bargaining table with Meijer, officials said they wanted to secure wage gains, improvements in paid time off and more affordable medical care for members. The existing contract, which was See MEIJER on Page 28

Meijer Inc. store in Grand Haven. | MARK SANCHEZ

RETAIL Downtown officials retool grant program after string of closures

CRAIN’S FORUM Michigan got billions in COVID-relief funding. Where is it all going?

PAGE 3

PAGE 13

NOTABLES Leaders in human resources PAGE 18

11/21/23 1:29 PM

BREAKING NEWS AS IT HAPPENS.

Sign up for Breaking News Alerts and be the first to know when big stories break.

CrainsGrandRapids.com/Newsletter

LG Energy Solution laying off 170 at Holland plant Move comes amid production changes, EV transition slowdown

By Kayleigh Van Wyk

LG Energy Solution Michigan is laying off 170 employees amid a massive expansion project at its manufacturing campus in Holland.

The subsidiary of South Korea-based LG Energy Solution reportedly announced the workforce reduction to affected Holland employees the week of Nov. 13.

“As we continue our mass expansion and renovations, LG Energy Solution Michigan is transi-

tioning and retooling some production lines from our current production facility to our second factory within our Holland site,” the company said in an emailed statement. “Less staff will be needed as some production lines are transitioned.”

The company also cited “automakers realigning the speed of the EV transition” as a contributing factor, in addition to the production gap.

The layoffs will occur in phases between December and January 2024, according to LG’s statement.

“We understand the impact this will have on those who are being laid off and will provide those affected with support and assistance,” the company said. “This will include a severance package and outplacement services.”

Roughly 1,500 total workers have been working at the facility.

The Holland Sentinel on Nov. 13 reported the layoffs, citing an email it obtained from LG President of Michigan Charles Hyun to employees.

See LG ENERGY on Page 29

Construction on LG Energy Solution Michigan’s $1.7 billion expansion in Holland. | KAYLEIGH VAN WYK

Muskegon approves major mixed-use redevelopment plan Former paper mill site has environmental cleanup concerns

By Kate Carlson

Multiple businesses on Monroe Center Street NW have received retail innovation grants prior to opening. | ANDY BALASKOVITZ

Downtown officials retool grant program after string of closures Money for retail businesses comes from tax increment financing

By Kate Carlson

The $61,000 that Grand Rapids’ Downtown Development Authority recently approved for Shinola’s new storefront is part of a retail grant program that officials temporarily shut down in 2022 to evaluate its success.

Shinola’s grant is the 20th “retail innovation grant” that the DDA board has approved since the program launched in 2018. During that time, DDA officials opted to temporarily close the program from late-January to early-August 2022 after they had approved grants for 15 businesses. Of those 15 recipients, four eventually closed and two moved out of downtown.

The DDA temporarily shut down the grant program in 2022 to “take an introspective look at the program,” and to better understand the closures, said Melvin Eledge, the director of operations

at Downtown Grand Rapids Inc., which administers the DDA. “We wanted to make sure (the grant program) was supporting business owners in a way that we wanted it to, and we also wanted to make sure that we were doing

The DDA board during its Nov. 8 meeting approved Shinola’s $61,000 grant, which will subsidize about half of the company’s rent for the first 18 months of its three-year lease. Initially aiming to open in time for this year’s holiday shopping season, Shinola’s store now will open in early 2024, company officials said earlier this month, citing a delay in materials availability.

Downtown officials paused the grant program to better “understand the closings,” Eledge said during the DDA board meeting.

“We wanted to make sure they were really doing their homework and due diligence as business owners,” Eledge said. “That work has been tremendously successful. The

The DDA temporarily shut down the grant program in 2022 to “take an introspective look at the program,” and to better understand the closures.

— Melvin Eledge, the director of operations at Downtown Grand Rapids Inc. everything on our end to make this grant a good tool to help those businesses start up and as an attraction tool to help businesses come downtown,” Eledge said.

See GRANTS on Page 29

The Muskegon City Commission unanimously approved a major plan to redevelop a former paper mill on Muskegon Lake after hours of discussion and public comment about environmental contamination on the 122-acre site.

The city commission on Nov. 14 signed off on Parkland Properties’ planned unit development for Windward Pointe, which calls for up to 2,314 residential units, nearly 43,000 square feet of retail/office space and public amenities including a fishing pier and playground. The site also would include 252 private boat slips and 1,400 linear feet of transient spaces in the marina.

Muskegon-based Parkland Properties for the past six months has been under contract to purchase the property at 2400 and 2850 Lakeshore Drive on Muskegon Lake.

The city commission’s approval marks a critical step forward for the plan, which still needs approval from the Michigan Department of Environment, Great Lakes and Energy (EGLE) as well

as the U.S. Army Corps of Engineers.

“The project is viable,” Parkland Properties President Jon Rooks said during the commission meeting. “It’s a large site and has a high cost of development. We’ve successfully completed every project we’ve started over 35 years, and we have a history of not overpromising what we’ll be able to deliver, and not creating unrealistic expectations.”

Windward Pointe would have an estimated annual economic impact of $50.9 million, Rooks said, citing a Grand Valley State University study the development team commissioned.

“We think this is a great opportunity to create a development that will have a profound, lasting impact,” Rooks said. “(The project) will help solve the local housing crisis, help solve a regional housing crisis and includes attainable for-rent and attainable for-sale (housing).”

The development is “one of the largest projects we will see in Muskegon in our lifetime,” Muskegon Mayor Ken Johnson said during the meeting.

Johnson said he supports the project while acknowledging ongoing community concerns, mainly around PFAS identified on the property.

See MUSKEGON on Page 28

Parkland Properties plans to redevelop a 122-acre, former paper mill property on Muskegon Lake. | COURTESY OF CITY OF MUSKEGON November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 3

P003 CGR 20231127.indd 3

11/21/23 1:32 PM

Officials aim to strike balance with US-131 upgrades Major focus is Wealthy Street area and its 26 ramps

By Kate Carlson

State and local transportation officials are wading through thousands of public comments on how to improve the US-131 corridor through Grand Rapids’ south side, in an attempt to strike a balance between advocates for a bigger, safer freeway and people seeking alternative options.

The state’s planning process continued with a Nov. 9 community input meeting that examined options for Michigan’s busiest freeway corridor outside metro Detroit.

Adding freeway lanes, altering interchanges and changing local street connections are among the proposed changes that state transportation officials are considering to update US-131 between 28th and Cherry streets.

The community input meeting, along with an online survey open through the end of the year on the Michigan Department of Transportation’s website, are the final pieces of a required Planning and Environment Linkages (PEL) study before environmental analysis, design and construction can take place to update US-131.

The corridor under consideration includes 26 entrance and exit ramps and averages more than 120,000 vehicle travelers a day. No funding has been secured to make

One option under consideration is to “flip” the existing Wealthy Street interchange to create an underpass. | MICHIGAN DEPARTMENT OF TRANSPORTATION

the proposed changes to US-131 that are included in the PEL study, but state lawmakers last year allocated $10 million in the state budget to narrowly study the reconstruction of the Wealthy Street interchange. This would take place after the PEL study is completed.

“This is our third and final phase of the PEL study,” Nick Jasinski, region design engineer at MDOT, told Crain’s Grand Rapids during the community meeting.

A report will be available in the coming months to present findings and public comments from the community input meeting.

The PEL study presents two main options for the Wealthy Street interchange, including flipping Wealthy Street to an underpass, which would replace the left-sided ramps of northbound US-131 with

right-sided ramps, and connect Wealthy and Cherry streets with a service drive.

The study also presents an overpass option, which would mostly update the existing design of the interchange with the addition of widening the sidewalk and other safety enhancements like lighting for pedestrian and traffic safety.

The overpass option would also replace left-sided ramps of northbound US-131 with right-sided ramps, as well as add the service drive to connect to Cherry Street.

The goal is to conclude the PEL study and start using the $10 million allocation to keep studying the Wealthy Street interchange early next year, Jasinski said.

“What we’re going to do (after the PEL study) is dive deeper into both of these options for Wealthy

Street, and analyze traffic operations and do a lot more community engagement around it,” Jasinski added.

The “Wealthy Street flip” will likely cost upwards of $100 million to construct, and is currently not funded, Jasinski said. Once funding and additional rights of way are secured, the earliest construction would start on the interchange would be in about five years, he added.

The PEL study also proposes several options for US-131 between Hall and Cherry streets, including adding inside shoulders to create space for emergency vehicles, adding additional lane space between ramps to enhance safety, and adding a fourth lane on both sides of the freeway.

All of the options laid out in MDOT’s public survey for the US131 PEL study are on the table, Jasinski said.

“With any type of rebuild, any new connection would have sidewalks and other opportunities to cross and tie into the mobility network,” said Tyler Kent, MDOT planner for the Grand Region. “We have gotten almost 10,000 comments, so it’s going to have to be a balance.”

Safety is the city of Grand Rapids’ No. 1 concern with any updates made along the corridor, said Cindy Irving, assistant engineer for the city of Grand Rapids.

“One of the things we’ve asked for is that shoulders be added to the highway, which is pretty standard right now to make sure emer-

gency vehicles can reach cars,” Irving said. “MDOT has also been a good partner with us in realizing we are space-constrained with land and we don’t have a lot of industrial land in the city of Grand Rapids and we want to minimize the impact on the land use.”

Some concerns and feedback that MDOT has received from community members include eliminating the freeway and looking for alternative modes of travel outside of vehicle traffic.

“If we were to eliminate a freeway and turn this stretch into a surface street, there would be more congestion and possibly more trucks and traffic on neighborhood streets,” Jasinski said. “From our perspective, making the freeway run as efficiently and smoothly as possible can only help the situation.”

Other public comments have urged MDOT to explore light rail to replace highway traffic, but that is not a viable option for the approximately three-and-a-half-mile stretch that MDOT is studying, Jasinski said. The area also is a key corridor for freight and logistics traffic.

“That would take a systemwide, citywide effort bigger than what we’re talking about here, which is going to be hundreds of millions dollars, but that option would be (more costly) than this to implement and take a public transportation system,” Jasinski said.

Some people want to see more lanes on the highway while others want to do away with it, based on public comment MDOT has received so far, Irving said.

State funding to back Hispanic-, Black-owned startups Support Hubs program will accelerate small business development

By Mark Sanchez

A $2.5 million state grant will go to elevate support for minority entrepreneurs across West Michigan and deliver resources to business owners who leaders say are often overlooked.

The West Michigan Hispanic Chamber of Commerce partnered with Grand Rapids Area Black Businesses, Latin Americans United for Progress in Holland, the Grand Rapids Urban League, and El Concilio in Kalamazoo to secure the funding from the Michigan Strategic Fund’s Small Business Support Hubs program.

“This is going to be incredible work. We’re going to show the West Michigan community what we can do together as organizations, and we really want to accelerate the work around economic development in this region,” Hispanic Chamber of Commerce President and CEO Guillermo Cisneros said.

“With this coalition, we want to make sure that our impact and everything that we’re doing around supporting our Latino businesses

and our Black businesses gets accelerated.”

Cisneros announced the grant award Nov. 9 at the end of a Hispanic economic outlook hosted by Bank of America in Grand Rapids that focused on the rising economic power of the West Michigan Hispanic population, which is projected to grow 130% over the next two decades.

Cisneros said the funding will go to technical assistance programs for Hispanic- and Black-owned small businesses in Grand Rapids, Muskegon, Holland and Kalamazoo.

Assistance programs will include education and training in areas such as business development and planning, financial management and accounting, human resources, and marketing.

The West Michigan Hispanic Chamber will manage the grant, “but my goal is to distribute these resources equally,” Cisneros told Crain’s Grand Rapids Business.

“It’s amazing. This is a dream come true to bring Black and Brown organizations together. I always want to show unity, and we need this unity to be able to move forward in the next few years,” he said. “It’s going to be beneficial for the entire region. The economy will benefit if these organizations are funded and are doing the job to

A rendering of the West Michigan Hispanic Chamber of Commerce’s planned $9.5 million headquarters that will also serve as a business incubator. |COURTESY OF THE WEST MICHIGAN HISPANIC CHAMBER

support businesses in those communities. We get to the corner of the community that organizations don’t get.”

The elevated programming will begin once the Hispanic Chamber hires additional staff, likely in 2024, Cisneros said. The assistance will go to microbusinesses that have up to 10 employees.

The West Michigan Hispanic Chamber of Commerce funding was among more than $73 million the state awarded to 27 organizations for Small Business Support Hubs. The funding came from the state’s allocation from the federal American Rescue Plan Act. Grand Valley State University’s Muskegon Innovation Hub received $1.79 million that will help

expand the lakeshore business incubator’s work, said hub Director Kevin Ricco.

Sixty-five companies currently work within the Innovation Hub, which was established by GVSU, the MEDC and the city of Muskegon in 2003 as a designated SmartZone for the region.

Ricco said the funding will allow the organization to hire two new staff members and boost the team’s capacity for community outreach and connection.

“We have a pretty small but dedicated team,” Ricco told Crain’s Grand Rapids. “We annually work with and help a lot of entrepreneurs, but our bandwidth is limited. Considering the geographic footprint that we’d like to work in, we struggle

sometimes finding ways to connect with some of our communities … but this grant is going to allow us to do a better job with that.”

Funding also will be used to refresh the 20-year-old building with updated furnishings and equipment.

The Innovation Hub also plans to launch a business accelerator program in 2024 that will focus on minority-owned businesses for the first cohort. Ricco said the Hub is planning on two additional cohorts in the future, though the team is still determining what those will look like.

“We’ve been talking about that as a team for a few years. We just haven’t had the funding, quite frankly, to be able to do that,” Ricco said.

Other grant recipients for Small Business Support Hubs are: w Start Garden Inc. in Grand Rapids, $3.4 million. w Grand Rapids Nehemiah Project, $2.4 million. w Battle Creek Unlimited Inc., $3.3 million. w Can-Do Kalamazoo, which does business as Can-Do Kitchen, $1.9 million. w Lansing Economic Area Partnership, $3.42 million.

— Crain’s Grand Rapids reporter Kayleigh Van Wyk contributed reporting to this story.

4 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P004 CGR 20231127.indd 4

11/21/23 1:40 PM

Despite outcry, panel advances 92-unit project at former mine site Data shows traffic would not overwhelm neighborhood streets

By Rachel Watson

The Power Breakfast fireside chat with Crain’s Grand Rapids Business Editor Joe Boomgaard and Grand Action 2.0 Executive Director Kara Wood. | CRAIN’S GRAND RAPIDS BUSINESS STAFF

Developer hopes to break ground next year on soccer stadium Grand Action 2.0 is simultaneously developing amphitheater

By Rachel Watson

The developer behind a Grand Rapids soccer stadium will soon announce the project location as it pushes to secure a naming rights sponsor and other funding for the major development.

Speaking at a Nov. 8 Crain’s Grand Rapids Business Power Breakfast event on the commercial real estate market, Grand Action 2.0 Executive Director Kara Wood said if progress continues as hoped, groundbreaking on the proposed soccer stadium could happen as soon as next year. That would follow the start of construction on the group’s other project, the Acrisure Amphitheater, in the spring.

Wood also said Grand Action 2.0 is close to announcing the soccer stadium location after conducting “very significant site location analysis,” with downtown being “higher on the priority list than other sites.”

Renderings of the venue obtained by Crain’s Grand Rapids appear to show the YMCA adjacent to the site on the city’s west side, with the stadium situated just northeast of the YMCA along Mt. Vernon Avenue NW across the Grand River from downtown.

A city-owned commuter parking lot and a Big Boy restaurant are currently located on the property.

Wood said the renderings show a “very preliminary” design and likely will go through several iterations, similar to the design for the amphitheater.

“I would say (the soccer stadium) is lagging just a bit behind but very closely in the same phase of development,” she said.

Wood said one big challenge is that Grand Action has never worked on two major development projects at the same time, requiring simultaneous pursuits of private philanthropy and public funds.

“One project every 10 years was kind of the cadence,” she said of Grand Action, which formed in the early 1990s to stimulate major

development projects in downtown, including Van Andel Arena and DeVos Place. “The private funds that need to match those public funds … is unprecedented.”

She said Grand Action 2.0’s next funding priorities for the soccer stadium are to secure a naming rights sponsor and pass local hotel tax legislation that would back Grand Rapids-Kent County Convention/Arena Authority (CAA) bonds.

In terms of philanthropy, Wood acknowledged that as the old guard of big West Michigan donors passes the baton to a new generation, capital campaigns are becoming more complex.

“There are a lot more participants, the activity is amongst more individuals now … and it will take everyone’s effort. It’s not a matter of five individuals calling their two best friends and pulling the capital together necessary to match that public funding that’s necessary,” she said.

Far from being a “pet project” of Grand Action 2.0 co-chairs Tom Welch, Carol Van Andel and Dick DeVos, the soccer stadium was identified in a 2016 destination asset study as a way for Grand Rapids to stay relevant and keep growing. Such a venue could tap into one of America’s fastest-growing sports by serving as a way to ideally attract a United Soccer League team.

Just as building the Acrisure Amphitheater could catalyze other development, including housing, retail, restaurants and recreational opportunities on the riverfront, the soccer stadium could spin off additional multifamily and commercial development, Wood said.

A panel of commercial real estate leaders at the event agreed.

“Activity breeds activity,” said John Kuiper, CEO and principal of Advantage Commercial Real Estate. “If you look back at what happened with the (Van Andel) Arena … not only has it changed the area, it has expanded downtown quite a bit to the south. So it’ll be really interesting to see how the ancillary development happens around (the soccer stadium), both from an office development and retail and multifamily standpoint.”

The Grand Rapids City Planning Commission voted to support a developer’s plan to build 92 units of housing at a former sand and gravel mining site, after strong opposition from dozens of west side neighbors.

The planning commission voted unanimously Nov. 9 to recommend approval of a request by Grand Rapids Township-based Redstone Homes to rezone 959 Bristol Ave. NW on the city’s west side for a single-family housing development called Bristol Valley Condominiums.

“Housing is a need, this is a good spot for this, and I appreciate the volume, the size (and) the mix of the townhomes and the single family,” Planning Commissioner Kristine Bersche said during the meeting.

If approved by the city commission, the zoning would change from mid-century neighborhood-low density residential to a multifamily planned redevelopment district to facilitate the construction of 16 condos and 76 townhomes on the 27-acre site.

The planning commission’s decision to advance the housing project came after a vocal outcry against the plan by west side residents. City staff received 40 letters of opposition and two separate signed petitions against the proposal, totaling 101 signatures.

The meeting also included a nearly hourlong, heated public comment period.

Several times, Planning Commission Chair Kyle Van Strien had to remind attendees of the rules of order as individuals shouted or talked out of turn over the presenters and commissioners.

About 15 residents expressed concerns about density, traffic, stormwater management, loss of green space, and changing the character of the neighborhood.

Fred Beckett, who lives just southwest of the site on Eighth Street NW, pointed to several ongoing housing developments nearby, such as the 120-unit Victory on Leonard project and the conversion of the former Lincoln Country Club in Walker into the 250-unit Savannah at Waterford Village. He raised concerns about further development, particularly on this part of Bristol, which he said has been a quiet street for decades.

“Keep the west side the west side,” he said. “We love it. It’s the best side. We do not have to develop every square inch of property.”

Sandra Zemaitis, a 51-year resident of Bristol Avenue NW who lives uphill from the development site, said she’s concerned about safety issues tied to a potential increase in traffic, particularly for families with young children who play nearby.

“I don’t want to see a child killed or anybody else. It’s wrong. It’s too

Redstone Homes plans to build a 92-unit community of single-family condos and townhomes at 959 Bristol Ave. NW in Grand Rapids. | REDSTONE HOMES

much traffic for that little street,” she said.

A traffic study commissioned by the applicant and reviewed by Mobile GR found the development would generate 749 trips per day, with 126 of those trips falling during the evening peak hour, adding about two extra trips per minute at the busiest time.

Per the city’s Vital Streets plan, this neighborhood residential street can handle daily volumes under 2,000 vehicles per day. This development would bring the daily volume up to 1,307 trips, or about 65% of the maximum capacity of the road.

City Planning Director Kristin Turkelson said the neighbors’ fears are not supported by data in this case.

“From the technical requirements of the traffic study, it is not shown to be a significant burden on the adjacent streets,” she said.

“But that’s not to say people’s lived experience won’t feel different.”

Josh Naramore, managing director of Mobile GR, told commissioners that if traffic does prove to be an issue, the city would work with neighbors to add speed bumps or roundabouts as “traffic calming” measures.

Planning Commissioner Aaron Jonker said while he’s sympathetic to neighbors’ concerns, housing studies show new construction is needed at all price points in the city, and this site is ripe for development.

“Essentially all neighborhoods in our city must allow for and accept some change, and that’s always hard, right? It’s happened in all of our neighborhoods. But I think that this density is appropriate here on this site,” he said.

About five residents wrote letters in support of the housing development, and two people spoke in favor at the hearing.

Andrew Carley, director of outreach for Strong Towns Grand Rapids, cited Kent County’s most recent housing study that found an additional 35,000 units of housing will be needed countywide by 2027 to meet demand. If anything, he said he believes the project on Bristol should be denser.

“We can prevent the affordable housing crisis,” he said. “We just

need to build our way out of it.”

The property, which is about a half-mile southwest of the intersection of Leonard Street and Walker Avenue NW, was owned by DeVries & Sons and used for sand and gravel mining for decades.

Grand Rapids-based Dykema Excavators Inc. acquired the acreage in 1998. It has not been used for mining for about 20 years, and the property has gradually grown over with trees and grass.

The developer’s plan calls for 16 detached single-family homes and 18 townhome buildings with anywhere from four to six units each.

Bristol Valley Condominiums would be for homeownership, with common elements such as a pavilion, open space, roads, sidewalks, lighting, stormwater detention ponds and services such as lawn care, snow removal and trash removal. The maintenance would be paid for by the residents via a homeowners’ association.

The development will have all private interior streets accessed by two entrances off Bristol Avenue to the west — one at the intersection of Patton Avenue and the other between Woodrow Avenue and 10th Street NW. The single-family homes would have 2,257 square feet of living space, and the townhomes would be about 1,723 square feet. All dwellings would have front-loaded, attached two-car garages and driveway parking.

Single-family home prices are expected to be in the $395,000 range, and the townhomes are expected to be marketed in the $340,000 range.

The planning commission’s approval comes with a few conditions. The developer must build sidewalks on both sides of the streets separated from the road by a parkway and trees, rather than directly abutting the streets; add street lighting that meets city guidelines, which was not specifically addressed in the proposal; limit construction hours from 7 a.m. to 7 p.m.; and use traffic calming measures in partnership with Mobile GR. Pending further approvals, Redstone hopes to start site work in spring 2024, with construction beginning in the summer.

NOVEMBER 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 5

P005 CGR 20231127.indd 5

11/21/23 5:03 PM

Former CEO’s downtown condo seen as ‘unicorn’ Wolverine executive’s penthouse space has many unique features

By Rachel Watson

When Brendan and Abby Hoffman were shopping for a condo in Grand Rapids a year ago, they were looking for a place in the downtown core that might remind them of Manhattan.

The pair were drawn to a nearly 3,200-square-foot, loft-style penthouse on the second and third floors of a three-level brick building constructed in 1890. They bought the condo in September 2022 for $1,262,500.

An entity tied to Rockford Development Group that was led by John Wheeler and Mike VanGessel had converted the historic building into condos and retail as part of a revitalization of seven mixed-use buildings along Monroe Center Street NW in 2005.

Brendan Hoffman, the former CEO of Rockford-based Wolverine World Wide from December 2021 until August, at the time was leasing a River House condo inside the Bridgewater Place while he and his wife shuttled often between Grand Rapids and their home in suburban New York City.

Despite their stunning Grand River and skyline views at River House, the pair felt disconnected from downtown living, so they decided to buy real estate closer to the city center.

“We wanted something (with) a little bit more walk-out appeal, and we could just walk to different restaurants and cultural activities, and so we just fell in love with the place — it reminded us a little bit of SoHo or Brooklyn,” Brendan Hoffman said.

While living there, they often ate or drank at Monroe Center staples like House of Wine and Brick & Porter.

The couple have now moved back to New York so he can pursue other career options on the East Coast following his exit from Wolverine earlier this year.

They listed their three-bedroom, three-bathroom condo for $1,395,000 on Oct. 5 through Realtor Mark Brace, with Brace Homes of Berkshire Hathaway HomeServices Michigan Real Estate.

Fit for their lifestyle The Hoffmans said one of the biggest selling points of the condo

— besides its interior mint condition — was its 1,200-square-foot, private patio accessible from the living room and a main-floor bedroom. The patio has a built-in waterfall and gas firepit, along with several planter boxes and multiple seating areas.

“It seemed very unique in city living to be able to get that external space,” Hoffman said. “We have a little dog that was coming back and forth with us, and she liked to be able to roam a little bit.”

The Hoffmans also loved having two private basement storage rooms, one of which had been converted to a fitness room by the previous owner, as well as two reserved heated garage spaces accessible from inside the building.

“We couldn’t believe our luck with that one because that was our biggest concern if we were to get a condo. We had heard from people that parking could be an issue and that you just kind of have to figure that out, especially in the winter months when it can be a little tricky,” Abby Hoffman said. “So we thought we hit the jackpot with that.”

The Hoffmans are empty nesters, so assigning the open-air, second-floor loft as their “dreamy” master suite posed no privacy concern like it might for those with young children, Abby Hoffman said.

They especially appreciated the loft’s enormous attached walk-in closet and makeup room, adjoining bathroom, and walkout balcony off the sleeping area.

Entering the condo from the main floor foyer, there’s a bar and laundry room to the left, and straight ahead is the open-plan kitchen, dining room and living room.

Off the living/dining area are two wings: On the right side is the larger, main-level primary bedroom and bathroom, while the left side features the third bedroom and attached bath, office and stairs to the upper floor.

The Hoffmans reserved the main-level primary bedroom for guests or for when their college-age children came to visit. They used the third bedroom as a family/media room but equipped it with a pull-out sofa for additional guest sleeping space. The next owners could easily convert it back into a bedroom by changing the furniture.

Abby Hoffman said the pair furnished and decorated the condo “to a T,” and she could see herself repurposing some of it for their New York home. But if someone made “a reasonable offer,” they would include the furniture at an

Brendan and Abby Hoffman are selling their downtown Grand Rapids penthouse condo for almost $1.4 million. | MARK BRACE, BRACE HOMES

additional cost to be negotiated above the list price, she said.

Enhancing the space The previous owners had recently renovated the space when the Hoffmans bought it, retaining some of the original features like the vaulted ceilings, wrought-iron staircase railing and exposed brick walls in some of the rooms, while modernizing much of it, like adding marble countertops, backsplashes and cabinets with contemporary brass hardware in the kitchen.

Abby Hoffman said they loved the look of it when they moved in and only made a few changes. They remodeled one of the bathrooms, refinished the wood floors, replaced the older range with a brand-new Wolf stove, repainted the walls a lighter color, and replaced the lighting throughout the condo.

“Our kitchen cabinets are darkwood stained, and it just came across feeling a little bit dark,” she said. “We weren’t sure if we were going to replace all the cabinets, but the minute we replaced the lighting and repainted it a lighter color, it just came alive.”

“The place is just beautiful,” she added. “We absolutely loved it and we’re sad (to be selling).”

The local condo market Walter Perschbacher, vice president of Greenridge Realty Cascade and board president of the Greater Regional Alliance of Realtors, said the local condo market is experiencing fewer sales this year.

He provided listing service data to Crain’s Grand Rapids Business that showed the dollar volume

(about $97 million) and number of Kent County condo sales (956) had dropped about 17.6% and 13.7%, respectively, year to date as of October 2023 compared to the same period last year.

That’s partly because there was just less inventory. The number of new condo listings was down 17% year to date in October 2023, falling to 1,126 from 1,356 the same period in 2022.

“That’s just condominiums, but those numbers fall in line fairly similarly to what we’re seeing across the whole market,” Perschbacher said. “(In) rough numbers, the whole market is down about 15% in units and volumes.”

Perschbacher said the drop is partly attributable to a natural leveling off from a boom year of sales in 2021 and 2022, and partly because of the Federal Reserve increasing interest rates to slow inflation.

“That had an effect, to pause the market, not stop it, but pause it, because anybody who didn’t have to make a move kind of fell into a wait-and-see mode,” he said.

A Greater Regional Alliance of Realtors report on the city of Grand Rapids’ townhouse and condo market paints an even starker picture, with the number of new listings falling 27.2%, from 342 yearto-date in September 2022 to 249 year-to-date in September 2023.

Closed sales fell at the same rate for the same periods, from 283 to 206.

Condos in the city of Grand Rapids also stayed on the market longer for the first nine months of 2023 — an average of 31 days compared to 25 days the same period the prior year, according to the Greater Regional Alliance of Realtors report.

Chuck Gallagher is a longtime

Realtor with the Gallagher Group of Greenridge Realty and specializes in downtown Grand Rapids condo sales. He said sales in his segment of the market — which includes high-priced luxury condos — are “more flat than usual.”

But he said the sales numbers for downtown can be deceiving because activity dies down in the summer, when many residents are away at their cottages.

“We always have a lull starting at the end of June when the weather turns nice, and then it doesn’t change until we get that first cool day,” he said.

Case in point: He had one or two active listings over the summer and currently has eight or nine. By December, he expects inventory will dip again as those listings sell and people shift focus to the holidays.

“But I would say I feel (listings are) not going as fast as in the past, and the prices are staying flat, as opposed to going up that typical 5% to 7% that we’ve had for the last 13 years in the downtown area,” Gallagher said.

Brace, the broker for the Hoffmans’ listing, said he’s had quite a bit of interest in the Hoffmans’ condo, with several showings but no written offers yet.

He is seeing more demand pressure in the market for single-family homes than condos. But with the “uniqueness” of this penthouse and its “unicorn” status with the private balcony and covered garage spaces, it could end up beating the trend, he said.

In his portfolio this year, Gallagher said $1 million-plus condos have sold better than those in the $300,000 to $500,000 price range. A place with amenities like the Hoffmans’ could “without question” align with that trend, he added.

6 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P006 CGR 20231127.indd 6

11/21/23 1:42 PM

Mangiamo is returning to this former mansion in Grand Rapids’ East Hills neighborhood. | GILMORE COLLECTION

Italian restaurant Mangiamo returning to East Hills location Diners can expect a vintage, upscale experience this time around

By Abby Poirier

After six years as the home of restaurant and event space Paddock Place, a historic mansion in Grand Rapids’ East Hills neighborhood is returning as Italian restaurant Mangiamo, which originally opened in 2005.

Mangiamo, a Gilmore Collection restaurant, is returning on Jan. 10 at 1033 Lake Drive SE with a new look and atmosphere that Gilmore Chief Operating Officer Michael Gee calls “swanky, sexy, and high-end.”

This time around, Mangiamo operators are leaning into the history of the building to give guests a vintage, upscale dining experience. The restaurant’s menu will feature former Mangiamo favorites like chicken piccata and the “baseball” meatball, alongside modern steaks, chops, elevated pasta dishes and seafood from Executive Chef Jorge Mendez.

Gee, who served as general manager for the original iteration of Mangiamo, which closed in August 2017, said the decision to end the Italian dining concept was a difficult one at the time.

“We needed to pause and reevaluate the business because it hadn’t been going in the direction we wanted it to for quite some time,” Gee said.

Fast forward to January 2023, when the Gilmore team decided to make some “big changes” to the Paddock Place concept, according to Gee. In July, the restaurant announced its temporary closure for renovations and improvements “to enhance aesthetics, overall guest experience, and the capabilities of the culinary team,” according to an announcement at the time.

“As we looked at the portfolio restaurants in the Gilmore Collection, we realized we were missing that fine dining style of restaurant where we could offer high-end steaks, seafood dishes, and the best quality service and hospitality,” Gee said.

With that in mind — and with the encouragement of Mendez, who has a history as chef at Gilm-

ore’s Nonna’s The Trattoria and Bobarino’s Pizzeria at The B.O.B. — the Gilmore team decided to revisit the Mangiamo concept.

To prepare, the Gilmore team gave the building a new look, repainting the building interior in darker tones and adding new furniture.

The building, built in 1873 by lumber baron Augustus Paddock and now listed on the National Register of Historic Places, remains the same to preserve its historic integrity, Gee added, noting that all changes are cosmetic and no renovation was done to the building.

The former wine cellar at Paddock Place has been transformed into a new addition for Mangiamo: Mo’s Cocktail Lounge, which will be hosted by Morgan Gilmore, daughter of Gregory Gilmore, CEO of the Gilmore Collection.

The new lounge will seat around 35 in a classic, speakeasy-style bar with a separate entrance and small sharing menu for guests to grab a drink before or after dinner at Mangiamo.

The updated Mangiamo menu will offer “light, flavorful” pastas, savory soups, fresh seafood and various cuts of meat, Gee said. The restaurant also will offer a variety of vegan and vegetarian options.

Gilmore Collection Executive Chef Wes Davis said in a news release that the menu has been “a real labor of love” that strikes a balance between requests for Mangiamo’s original, classic Italian menu and what the Gilmore team feels is a “burgeoning demand” for more elevated dining experiences.

The space will continue to host events of all sizes on its second floor and lawn, although Gee anticipates seeing a shift in clientele after the restaurant’s rebrand.

“I’m hoping we can do a lot more corporate dinners and business occasions and celebrations,” he said.

“I’m super excited to reintroduce (Mangiamo) to our previous clientele (and) our old regulars, who have missed us and have missed that Italian concept in the company,” he added.

A Lender big enough to provide the options you need, and small enough to know you by name.

You know your business and path to continued growth. We’ll help you navigate that path with a custom lending solution - providing expertise in commercial real estate, working capital and equipment financing.

Michigan | Illinois | Wisconsin adviacu.org

Advia is an Equal Opportunity Lender. Federally Insured by NCUA.

$2.0 Million Financed Multi-Building Medical Office in Greenville, MI

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 7

P007 CGR 20231127.indd 7

11/21/23 1:43 PM

Kentwood apartment complex sells for $130M Transaction bucks national multifamily market trend

By Rachel Watson

A California firm recently acquired a 924-unit apartment complex southeast of Grand Rapids for $135 million amid what experts say is a thriving multifamily market in West Michigan despite high interest rates.

San Francisco-based FPA Multifamily LLC on Aug. 29 acquired the 924-unit Woodland Creek and Woodbridge Apartments in Kentwood for $135 million, or $146,104 per unit, from an entity tied to the principal of Airmont, N.Y.-based Embassy Group LLC. The 924-unit, 31-building Class B housing complex built in the 1980s sits on nearly 52 acres at 3300 and 3140 East Paris Ave. SE, just north of 36th Street.

Rents for the market-rate complex, which FPA renamed ReNew Woodland Ranch and placed under management of Trinity Property Consultants, range from $1,115 for a one-bedroom, one-bathroom unit to $1,795 for a two-bedroom, two-bathroom apartment.

The buyer and seller did not respond to requests for comment.

Hannah Ott, executive vice chair of Cushman & Wakefield in Indianapolis, represented the seller in the deal with assistance from Jason Webb, senior director in Cushman’s Grand Rapids office.

Ott said the sale price for the complex, which was about 94% to

95% occupied at the time, was “in line” with other similar deals in the Midwest and was set based on the buyer’s expected future return on investment after planned renovations. The previous owner renovated about a third of the units before selling.

Ott said buyers still line up for multifamily deals like this in West Michigan despite the recent fast climb of interest rates.

“The market has shown stability for many, many years, and the reason that buyers are still excited to buy in Grand Rapids is because the fundamentals of the market are really strong,” she said. “They have not overbuilt from a new supply standpoint, and the existing product, by and large, has been well maintained. So there’s a good balance of apartment product types available, and (prospective buyers) were excited when we marketed this property to have the opportunity to buy a large unit count in Grand Rapids.”

The deal represents one of the Grand Rapids area’s top multifamily transactions of 2023 by price per unit, behind the sale in March of the 1-year-old Class A, 320-unit luxury development The Grove for $94.8 million, or $296,250 per unit.

That’s according to Kevin O’Reilly, director of multifamily investment for NAI Wisinski Great Lakes in Grand Rapids, who tallies recent transactions for quarterly reports on the West Michigan multifamily market.

O’Reilly said while transactional volumes declined year over year, investors’ appetite for West Michigan’s multifamily market is still

A California investment firm acquired the former Woodland Creek and Woodbridge Apartments in Kentwood for $135 million in August and renamed it ReNew Woodland Ranch. The 52-acre, 924-unit campus has shared amenities including a pool, game room, fitness center and outdoor sports courts. | COURTESY PHOTO

strong across the board right now, with interest from local, national and even international investors.

At a conference for the National Multifamily Housing Council O’Reilly attended in January, Grand Rapids was called out on stage as one of the top Midwest markets for multifamily investment, along with Kalamazoo and Madison, Wis. “These guys are renowned economists and commercial real estate research companies, and West Michigan was discussed on this stage in front of an audience of a couple of thousand people. Only serious players are there,” he said.

O’Reilly said a couple of main factors are driving greater Grand Rapids’ value proposition in the eyes of multifamily investors. The first, echoing what Ott said, is limited inventory, which has kept occu-

pancy high (95.4% in Q3) and rent growth steady.

Current deliveries in the Grand Rapids urban and suburban multifamily pipeline represent approximately 6.8 percent of total inventory, with only about 1,720 units currently under construction in 2023 and 1,802 units in lease-up across 12 new apartment communities. That’s according to a West Michigan multifamily construction report NAI Wisinski Great Lakes published covering the first half of 2023.

Meanwhile, a study from the nonprofit Housing Next determined Kent County will need more than 13,000 new rental units between 2022 and 2027, which comes to about 2,600 new rental housing starts per year.

By contrast, larger cities like Nashville and Salt Lake City have

more of an oversupply problem, O’Reilly said. Nashville is adding 10,078 units to its urban downtown core alone in 2023-24, which represents a nation-leading 36.7% supply expansion rate. Salt Lake City came in second, with 6,418 units coming online in its downtown core in 2023-24, or a 29% supply expansion rate.

With so much supply being added, rents tend to rise at a slower clip.

An Avison Young Q3 2023 multifamily market report found that nationwide, rents grew just 1.1% year over year. Third-quarter data from CoStar Inc. found rents in Kent County grew 5.1% in the past year for developments with 30 units or more.

Average rents for one-, two- and three-bedroom apartments in West Michigan were at $1,012, $1,238 and $1,477 in the third quarter of this year, up from $985, $1,205 and $1,441 over the same period last year, according to the Q3 NAI Wisinski multifamily report.

While O’Reilly said this represents a slowdown from the meteoric rent growth during the pandemic, it’s still an attractive rate of growth to investors.

The other factor driving Grand Rapids’ desirability for multifamily investments is population growth, fueled by the city’s much-touted low cost of living, natural resources and amenities, quality of life, and economic growth.

“We’re really bullish on Grand Rapids,” said O’Reilly, who recently moved here from Ireland. “You don’t have traffic to contend with.

There’s a really good quality of life, you’re not too far from the lake.”

Wolverine ‘turnaround’ continues with job cuts, restructuring Company suffers 23.7% decline in total revenue from year ago

By Kayleigh Van Wyk

Wolverine World Wide Inc. has announced an unspecified number of global job cuts and new strategic initiatives in an effort to cut costs during an ongoing company “turnaround.”

The Rockford-based marketer and licenser of footwear and apparel aims to stabilize and restructure the organization through some key changes announced Nov. 9, following the ouster of former CEO Brendan Hoffman in August and recent brand divestitures.

The changes come as Wolverine (NYSE: WWW) reported sinking revenue and earnings for the most recent quarter and explores the sale of additional non-core assets, which could generate $65 million by year end, according to executives.

The company anticipates the job cuts and strategic initiatives will produce $215 million in annualized savings, including an immediate $50 million in savings from a “pretty meaningful organizational redesign and restructuring of the workforce,” CFO Mike Stornant said during an earnings

call with analysts.

CEO Chris Hufnagel described the cost-cutting measures as “stabilizing the company by deleveraging the balance sheet, reducing our inventory, and restructuring the organization to reduce the cost structure and improve the margin profile. This work will enable us to invest more in our brands and platforms to drive growth.”

The company announced that a “global workforce restructuring”

gic collective focused on innovation and insights, new global licensing and planning functions, and new tools to support product management. The company also is working to align its U.S. and Canadian operations by consolidating its North American commercial structure.

“First and critically, we’ve historically underinvested in our brands, product innovation and demand creation. And I believe

“Given the headwinds we see on the immediate horizon, our results in the final quarter of the year will be less than we previously expected and certainly less than the company’s full potential.”

— Chris Hufnagel, CEO Wolverine World Wide Inc. was underway. The company did not respond to a request for more information about the plan. It is unclear how many employees or which areas of the business have been affected.

The company’s new initiatives include the formation of a strate-

our top line challenges today are in part a consequence of this fact,” Hufnagel said during the earnings call. “We intend, and already have begun, to strategically invest more in our biggest growth opportunities, and we must be better protecting these brand-building in-

vestments in the future.”

Hufnagel discussed the company’s need to transition from a “push model” to a more “sell through” approach, as well as to become a better manager of its brands.

“We’re thinking about sustainable growth in a new way and investing in the brand protection team to help manage and monitor the marketplace,” he said.

The latest initiatives build on Wolverine’s ongoing efforts to transform its portfolio with the recent sale of Keds; the Hush Puppies intellectual property sale in China, Hong Kong, and Macau; the sale of the Wolverine Leathers business in North America; and the consideration of alternatives for the Sperry brand.

Meanwhile, Wolverine on Nov. 9 reported its financial results for the recent third quarter, which included $527.7 million in total revenue, a 23.7% decline from the same period last year, driven in part by an ongoing wholesale demand slump in the U.S. and Europe.

While gross margins during the quarter showed a slight improvement, the company’s diluted earnings per share were at $0.11, down 77.1% from $0.48 from the same quarter in 2022. Executives expect

fourth quarter adjusted diluted earnings per share to be a loss of $0.30 to $0.25.

Aside from brand Sweaty Betty, which generated $45 million in revenue compared to $37.8 million for the same period last year, revenue dropped among the Merrell, Saucony, Sperry and Wolverine brands this past quarter.

Looking ahead, the company has reduced its upcoming fourth quarter revenue outlook to $515 million to $525 million.

“Given the headwinds we see on the immediate horizon, our results in the final quarter of the year will be less than we previously expected and certainly less than the company’s full potential,” Hufnagel said.

The company also shared that the strategic review of the Sperry Brand is progressing and that the company is looking to sell “other non-core assets” in the current quarter.

“While our turnaround and, ultimately, the transformation of Wolverine World Wide won’t be completed in a quarter or two — especially given the challenging environment we find ourselves in today — we expect to continue to make meaningful progress toward our transformation goals,” Hufnagel said.

8 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P008 CGR 20231127.indd 8

11/21/23 1:57 PM

CRAIN’S LIST TOP MICHIGAN LAW SCHOOLS

1

Ranked by 2022 enrollment Minimum Median Average Year 2022 undergrad LSAT annual founded enrollment GPA score tuition

Dean

OF MICHIGAN LAW SCHOOL Mark West 1 UNIVERSITY 625 S. State St., Ann Arbor, MI 48109

% of graduates passing first bar exam Areas of specialty

1859

976

3.01

171

$66,386 95.45%

Criminal and civil litigation, appellate, transactional and mediation opportunities in such areas of law as corporate, international and comparative, civil rights, human rights, intellectual property, health care, child welfare, wrongful convictions, more

Linda Greene

1891

635

3.15

157

$41,040 DND

Geoffrey Fieger Trial Practice Institute; core curricular strengths of social justice, business and regulatory law, and innovation and entrepreneurship; and eight in-house clinics (1st Amendment, civil rights, tax, immigration, housing, chance at childhood and more)

Jelani Jefferson Exum

1912

612

3.08

154

DND

DND

Intellectual Property Law Institute; immigration and family law concentrations; clinics in immigration, housing, veterans, appellate veterans, trademark and entrepreneur, criminal trial, juvenile appellate, appellate advocacy, international patent and family law

James McGrath

1972

529

2.64

148

DND

DND

Concentrations in administrative law, business transactions, Canadian law practice, environmental law, general practice small firm and solo, intellectual property, international law, litigation, focused studies

1927 386 STATE UNIVERSITY LAW SCHOOL Richard 5 WAYNE Bierschbach 471 W. Palmer St., Detroit, MI 48202

3.38

161

$36,502 DND

Damon J. Keith Center for Civil Rights; Levin Center at Wayne Law; Program for Entrepreneurship and Business; Program for International Legal Studies; clinics in asylum and immigration, business and community, civil rights, criminal appellate practice and more

p (734) 764-1358 michigan.law.umich.edu STATE UNIVERSITY COLLEGE 2 MICHIGAN OF LAW 648 N. Shaw Lane, East Lansing, MI 48824 p (517) 432-6800 f 432-6801 law.msu.edu OF DETROIT-MERCY 3 UNIVERSITY SCHOOL OF LAW 651 E. Jefferson Ave., Detroit, MI 48226 p (313) 596-0200 f 596-0280 law.udmercy.edu COOLEY LAW SCHOOL 4 THOMAS 300 S. Capitol Ave., Lansing, MI 49503 p (517) 371-5140 cooley.edu

p (313) 577-2602 f 577-9016 law.wayne.edu

Crain's Grand Rapids Business list of Top Michigan Law Schools, ranked by 2022 enrollment is the most comprehensive available. The list is based on responses to Crain's Grand Rapids Business surveys. To be considered for future lists, email danielle.nelson@crain.com. DND = Did not disclose 1. This list is based survey responses and the 2022 Standard 509 Information Report.

STAY AHEAD OF WHAT’S NEXT IN INDUSTRY NEWS RECOGNIZE TOP ACHIEVERS IN GRAND RAPIDS’ PREMIER PUBLICATION Mergers & Acquisitions / Name Changes / Business Launches / New Office Locations Funding Announcements / Industry Honors / Anniversaries

MAKE AN ANNOUNCEMENT Debora Stein / dstein@crain.com

CrainsGrandRapids.com/COTM

6 IN 10 READERS BELIEVE CRAIN’S GIVES THEM A COMPETITIVE EDGE

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 9

P009 CGR 20231127.indd 9

11/21/23 1:46 PM

THE TRANSFORMATION BEGINS HERE PROFESSIONAL MBA • Earn your MBA in 22 months while working • Engage with a hands-on capstone consulting project • Tap into valuable community and business connections

Troy-based Mantese Honigman has opened a downtown Grand Rapids office in the Ledyard Building at 125 Ottawa Ave. NW. | ANDY BALASKOVITZ

• Hybrid and remote learning options • Personalized leadership development • Exceptional faculty

Metro Detroit law firm opens downtown Grand Rapids office

www.gvsu.edu/seidmangrad

COLLEGE OF BUSINESS

SHARE YOUR SUCCESS

Contact Laura Picariello at lpicariello@crain.com for a unique opportunity to co-brand your company with a reputable news source.

with custom reprints, logo licenses, awards and more.

LABOR AND EMPLOYMENT

Whether you have two employees or two thousand, we’ve got you.

We represent public and private employers of all sizes and industries and are dedicated to helping navigate today’s labor and employment environment.

mikameyers.com

We get you. We’ve got you.

Mantese Honigman is growing West Michigan client list

Because of the firm’s smaller size, with 15 total attorneys licensed in several states, Mantese said the team aims to give West Michigan clients more personalized attention.

The Grand Rapids office is

By Kayleigh Van Wyk staffed by two attorneys and suA metro Detroit law firm spe- pervised by firm President Doug cializing in business litigation Toering, who grew up in Holland recently opened a new office in and Jenison.

“Many Chicago attorneys have downtown Grand Rapids to accommodate a growing number litigation in western Michigan, and we’re available to asof clients in West Michsist them as local counigan. sel,” Toering said in a Mantese Honigman statement.

PC’s new office suite at Mantese said the firm the historic Ledyard has assisted clients in Building at 125 Ottawa West Michigan in a numAve. NW opened in Ocber of sectors, such as tober and marks the real estate and developfirm’s fourth location, ment, and will continue in addition to its head- Gerard Mantese to pursue growth opporquarters in Troy and tunities with plans to offices in New York soon open a Florida office.

City and St. Louis, Mo. “We have a very energetic and Mantese Honigman focuses on business litigation and corpo- brilliant team and we’re excited rate law, handling cases involv- about how we can continue to ing business formation and ex- expand across the country,” pansions as well as shareholder Mantese said.

Built in 1874 in the Italiante and member disputes.

A physical office in Grand style, the Ledyard Building is the Rapids made sense as the firm second-oldest operating comgained clients in the region, ac- mercial building in Grand Rapcording to CEO Gerard Mantese. ids, according to its owner, CWD “Our clientele in the western Real Estate. It was added to the part of the state is growing, and National Register of Historic we thought it would be helpful Places in 1983 and underwent for them for us to have an actual mechanical and technological physical presence there,” Man- upgrades after CWD acquired the building in 2012. tese told Crain’s Grand Rapids.

“Our clientele in the western part of the state is growing, and we thought it would be helpful for them for us to have an actual physical presence there.”

— Gerard Mantese

10 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P010 CGR 20231127.indd 10

11/21/23 1:47 PM

CRAIN’S GRAND RAPIDS BUSINESS

NOTABLE WOMEN IN LAW Nominate a woman in law who makes an impact in the types of cases handled, clients won and/or pro bono work.

NOMINATE BY DEC. 1 CrainsGrandRapids.com/NotableNoms

State lawmakers pass bill to raise lodging taxes Beneficiaries include downtown amphitheater and soccer stadium

By Andy Balaskovitz

State lawmakers have passed a bill allowing Kent County and the city of Grand Rapids to potentially generate millions of dollars in public funding for major economic development projects, including a riverfront amphitheater and a soccer stadium.

Lawmakers earlier this month passed House Bill 5048 with bipartisan support as well as backing from local business leaders. The bill allows the city of Grand Rapids to seek voter approval for a 2% excise tax on hotel and motel stays to pay for various entertainment and convention facilities.

As well, the H.B. 5048 was amended during the legislative process to allow the eight Michigan

counties that levy a 5% hotel/motel tax to seek voter approval to grow that up to 8%, also in support of such venues. Eight counties have adopted a local lodging tax under a 1974 law: Calhoun, Genesee, Ingham, Kalamazoo, Kent, Muskegon, Saginaw and Washtenaw.

If approved by voters, the new city tax and increased county tax could potentially generate more than $10 million in new revenue in the first year, according to media reports. Grand Rapids leaders say the amphitheater and soccer stadium could generate a combined $1.28 billion in net new economic impact once completed. Developers hope to break ground on both projects in 2024.

Sponsored by state Rep. John Fitzgerald, D-Wyoming, H.B. 5048 was a “top priority” for the Grand Rapids Area Chamber of Commerce.

“We are thrilled with the bipartisan support and this major step forward to advance these transformational projects, but there is still much to accomplish,” Joshua

Renderings for the proposed Acrisure Amphitheater in downtown Grand Rapids. | COURTESY OF PROGRESSIVE AE

Lunger, the Grand Rapids Chamber’s vice president of government affairs, said in a statement following the bill passage. “The many public and private partners involved in these important efforts will be hard at work to plan the next steps and further engage with local stakeholders.”

Lawmakers on Nov. 9 signed off on the bill, which awaits Gov. Gretchen Whitmer’s signature as

of press time.

In written testimony, administrators from Kent, Genesee, Ingham, Muskegon, Calhoun and Washtenaw counties noted that the 1974 state law enabling a 5% lodging tax helped support several “transformational projects” in their communities and leverage private investment.

Allowing for an up to 8% lodging tax “will better equip our counties

to plan and implement future transformational projects geared toward economic and community development,” the administrators wrote.

“Investments in transformational amenities, and the additional private investment and public spaces they will spur, are a tool to attract and retain talent while raising the quality of life for all residents,” according to the letter.

SPONSORED CONTENT

NEW REPORTING REQUIREMENTS FOR COMPANIES UNDER THE CORPORATE TRANSPARENCY ACT

By Rhoades McKee

B

eginning on January 1, 2024, your company may have new reporting requirements under the Corporate Transparency Act (the “CTA”). On September 29, 2022, the Financial Crimes Enforcement Network (“FinCEN”) issued a final rule implementing the CTA’s beneficial ownership reporting provisions. The final rule requires anyone who is considered a “beneficial owner” or “company applicant” of a “reporting company” to submit a beneficial ownership information report (a “BOI Report”) providing certain information, including their name, birthdate, address, and an image of an acceptable identification document.

Do I Own a Reporting Company Subject to the CTA? Unless specifically identified as an exempt entity, the final rule classifies all entities created or registered by the filing of a document with the secretary of state or similar office as a “reporting company.” This classification applies to both foreign and domestic entities. If your company is a reporting company and is not subject to one of the exemptions enumerated in the CTA, you must complete a BOI Report for any beneficial owner or company applicant for your company.

Who Are the Beneficial Owners?

A beneficial owner refers to anyone who (i) exercises “substantial control” over a reporting

company, or (ii) owns 25% or more of the ownership interest of a reporting company. A reporting company will always have at least one beneficial owner.

Who Are the Company Applicants?

The company applicant is any individual who files an application to initially form or register a reporting company. This definition includes not only the person actually making the filing, but also the person who directs the filing.

When Does a BOI Report Need to be Filed?

For companies in existence prior to January 1, 2024, a BOI Report must be filed no later than January 1, 2025. For companies created or registered on or after January 1, 2024, a BOI Report must be filed within 30 days from the date such company receives notice of its formation. If beneficial ownership information changes (e.g., a new owner, etc.), such change must be reported within 30 days from the date the reporting company knows, or should know, of such change.

What Happens if I Do Not File a BOI Report?

You could be fined up to $500 per day, not to exceed $10,000. In the event of willful violations of the CTA’s reporting requirements, noncompliance could result in criminal penalties, including imprisonment for up to two years.

Next Steps The CTA is a significant development in the business world and is likely here to stay.

Due to the penalties that can result from non-compliance, business owners need to be confident of their company’s reporting requirements. Rhoades McKee can assist in determining whether your business is a reporting company, which individuals need to be reported as beneficial owners or company

applicants and how your company’s corporate documents can be modified to facilitate cooperation from all parties necessary to satisfy future reporting requirements under the CTA. Learn more at rhoadesmckee.com.

CRAIN’S CONTENT STUDIO

12 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P012 CGR 20231127.indd 12

11/21/23 1:48 PM

LORENZO CONTI

PANDEMIC RELIEF FUNDS

Michigan got billions in COVID relief funding. Where is it all going?

A flood of pandemic-era federal money prompts a flurry of spending on hundreds of state projects and programs | By David Eggert Six and a half billion dollars.

An enormous tranche of COVID-19 relief funds, almost $648 for every one of Michigan’s 10 million-plus residents, was sent to state government in 2021 to respond to the once-in-a-century pandemic. And unlike with other rounds of pandemic aid that flowed from Washington — rental relief and food assistance, higher unemployment benefits, coronavirus testing and vaccine administration — Lansing had a fair amount of discretion over how to use it.

Today, all of it is spoken for.

Gov. Gretchen Whitmer and lawmakers allotted the funding in a dozen budget bills over a twoyear stretch, with the last dollars appropriated in July.

Track the state’s spending for schools, projects Want to really drill down into how Michigan is spending its billions?

The state has launched an online dashboard. It breaks down funds into categories such as “state strategic goals,” shows which departments got money and details individual projects that are plotted on a map. Searches can be filtered by census tract, legislative district or congressional district.

The tool, which is updated quarterly, follows how much of the money has been appropriated, the total that has been obligated and how much has been spent.

Another dashboard has data about Michigan’s spending of all COVID-19-related funding.

And the Michigan Department of Education also has a dashboard tracking the separate billions in federal money for districts and charter schools.

To explore each one, go to crainsdetroit.com/dashboards.

Where is the money going? To so many places that Michigan may be at risk of being unable to fully address any single challenge of the

many it is facing — like infrastructure, pollution, education and more. Still, some clear priorities have emerged that are making a

difference while it will take time to know the impact of other spending, according to a Crain’s analysis of the laws and a state tracking tool.

The single biggest winner: water infrastructure. It accounts for $1.7 billion, more than a quarter, of the $6.5 billion the state has disbursed, and it will have a longterm effect. Other major beneficiaries are parks and trails, which are getting $473 million.

Some aid is more emergency-based, driven by the need to directly address fallout from the coronavirus outbreak. Around $800 million, or 12%, is helping hospitals and long-term care facilities with COVID-caused financial losses, sky-high contract labor costs, recruitment and retention,

and other issues.

About $121 million in grants went to businesses; another $50 million is going to nonprofits. The state partially offset a pandemic-induced loss of tax revenue by using $883 million to cover payroll costs in the Department of Corrections.

One of Whitmer’s signature first-term initiatives, Michigan Reconnect tuition-free community college scholarships for people 25 and older, has been temporarily expanded to 21- to 24-year-olds thanks to the federal funds.

All $6.5 billion now must be obligated, or formally committed, by the end of 2024 and spent by the close of 2026.

See MONEY on Page 16

SPONSORS

NOVEMBER 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 13

PANDEMIC RELIEF FUNDS | COMMENTARY

Schools will soon face tough funding decisions

H

M

UNSPLASH/KENNY ELIASON

S

chools across Michigan are about to face another COVID-related disruption as billions of dollars in federal pandemic aid runs out in less than a year.

But unlike the unprecedented interruptions to in-person learning that occurred without warning as the novel coronavirus spread across the globe in early 2020 and sent students home for months, school leaders have had time to plan and prepare for the upcoming fiscal disruption. For many school districts, however, adjusting budgets will require a delicate balancing act to ensure their students’ academic recovery is not sidetracked by the loss of the one-time relief dollars.

Since late 2020, almost Craig Thiel is research director $5.2 billion has been provided directly to disof Citizens tricts under two federal Research relief packages to help Council of schools navigate the Michigan. pandemic. That massive sum is nearly three times the amount of federal aid schools received in the wake of the Great Recession and is triple the amount of ongoing federal funds they receive annually. As a result, many school districts have been flush with cash the last few years, using the federal relief aid to respond to student’s academic and health needs by adding staff, increasing salaries, expanding programs and improving facilities. With this aid, school budgets have seen substantial spending increases that they would not otherwise be able to afford with their regular ongoing revenue.

Funds from 2021’s American Rescue Plan Act, the last and largest aid package, came with a use-it-or-lose-it fall 2024 deadline.

That means the current 2023-24 school year is the last full year for school districts to spend down what remains. Beginning September 2024, district budgets will have to do without the federal largesse.

Collectively, schools have $1.5 billion in ARPA funds yet to spend, an average of $1,000 per student statewide or 11% of the

current $9,600 per-pupil foundation allowance. Several districts, however, have much larger per-student amounts remaining, which means they will have even steeper funding cliffs next year when the federal aid is gone.

The impacts from the loss of federal relief aid will be most acute for those school districts educating our neediest students. That is because the federal aid was primarily distributed to districts based on the number of poor students — the same students that suffered the greatest learning impacts from the pandemic and today find themselves even further behind than their more well-off peers based on recent state assessments.

Most of the unspent funds are concentrated among a handful of districts that received the largest per-pupil allocations. According to the most recent state data, 16 of

the state’s 800-plus districts have at least $10 million of their ARPA allocation remaining to spend. Collectively, this small subset of districts accounts for more than 40% of the total unspent funds statewide.

This list includes several large districts in southeast Michigan, such as Detroit, Pontiac, Dearborn and Southfield, as well as urban districts in Flint, Grand Rapids, Lansing and Muskegon. Twelve of the 16 districts have at least 50% of their ARPA allocation still to spend, with the amounts of unspent funds ranging from $1,700 per-pupil (Lansing) to $25,000 per-pupil (Flint). All well above the $1,000 per-pupil statewide figure.

There is no escaping the math — district budget right-sizing is on the horizon. This will surely involve painful budget cuts to popular programs and services that have been initiated with these one-time dollars.

Schools that received substantial sums of aid were able to afford extended tutoring, additional summer programming, new mental health services, along with other services. Because school budgets largely pay for labor, districts will have few choices but to reduce staff. Nearly half of the relief aid spent to date has gone to salaries and benefits, helping to swell school employment levels to new heights.

While a few districts have begun right-sizing by shedding positions from this year’s budget, most are pushing the hard decisions to tomorrow. Doing so, however, makes the inevitable funding cliff even more steep. With academic recovery still ongoing, especially for those students hardest hit by the pandemic, many school leaders face a delicate balancing act preparing their budgets for the 2024-25 school year.

COVID relief funds are reshaping Michigan’s future

P

nesses are already seeing the beneresident Joe Biden’s Amerifits, and will continue to witness can Rescue Plan gave states the countless ways these once-inthe tools to make transformaa-lifetime funds have been hartional change coming out of the nessed to transform Michigan’s fupandemic. Here in Michigan, ture. we’ve leveraged these funds to ◗ Clean and safe drinking wamake a real difference in the lives of Michiganders and spark generater: We invested nearly $1.4 billion tional investments in our econoto rebuild our water and sewer inmy. These funds allowed us to Jen Flood is frastructure throughout the state, make historical investments in Michigan’s including lead service line removhealthcare, kids, small businesses budget director. al, because everyone deserves acand communities across the state. cess to safe drinking water.

In 2021, Gov. Gretchen Whitmer con- ◗ Investing in our kids: Unfortunately, the vened a group of leaders from business, pandemic disrupted learning for students philanthropy, education, healthcare, labor across the state and we’re tackling this chaland more to create a vision for transforma- lenge head on by implementing free pretional investment. These leaders identified school for all 4-year-olds; funding before principles to ensure ARP dollars were in- and after school programs; increasing menvested sustainably, effectively and equita- tal health programming in schools; and inbly. Proposals from this group were shared vesting in teacher recruitment. with the public and the legislature, and over ◗ Raising wages and supporting small the past two years have been appropriated businesses: Through ARP investments, we

by Republicans and Democrats in the Legis- were able to expand the successful Michilature. Michigan families and small busi- gan Reconnect program to provide a tui-

14 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

tion-free pathway to a degree or skills certificate. Reconnect also helps employers find the talent they need in our growing and changing economy. ◗ Affordable housing: We invested hundreds of millions into affordable housing, as well as energy efficiency programs to lower utility bills. ◗ State parks: With bipartisan support, we leveraged nearly $250 million to tackle the backlog of infrastructure needs at our state parks to upgrade camping facilities, restrooms, parking lots and more, ensuring visitors can take advantage of the worldclass outdoor recreation opportunities Michigan has to offer. ◗ Public safety: As a former prosecutor, protecting public safety is a top priority for Gov. Whitmer and that’s why we’re investing in community violence interventions and funding programs that build relationships between local communities and the police who serve and protect. ◗ Finally, the roads: On top of the investments mentioned above, Michigan has re-

ceived billions in federal funds to fix roads and bridges across the state. We’re competing to bring home every possible dollar through the Infrastructure Investment and Jobs Act, Inflation Reduction Act, CHIPS Act, and more. We must bring our roads, bridges, and water infrastructure up to a state of good repair, while laying the foundation for a next-generation economy built on clean manufacturing, electric-powered transportation and zero-carbon energy.

Those investments will create the middle class of the 21st century while preserving our lands and waters for generations to come. These federal opportunities represent a once-in-a-generation opportunity to make lasting investments in Michigan’s future.

Michigan’s share of COVID funds have been appropriated in a fiscally responsible and transparent manner. Anyone can visit the Fiscal Recovery Funds Dashboard or review the 2023 Annual Recovery Plan Report to learn more about the state’s use of these funds and the difference they’re making in communities across Michigan.

lion Am Act has bett ble and our and futu tinu C ARP bill and bus COV ena tion alon bui gro regi onc A bus imp wor as o F idea Bro

COMMENTARY | PANDEMIC RELIEF FUNDS

s

Historic ARPA funding is improving lives in Michigan

UNSPLASH/KENNY ELIASON

M

s of ing, new her gely ices elief and loy-

partner, has tracked all ichigan is on ARPA funding nationtrack to spend wide through a pubnearly $11 billic-facing dashboard. lion in state and local Brookings found that the American Rescue Plan most thorough and equiAct funds, money that ty-oriented approaches has made Michigan a funded by ARPA leverbetter and more equitaaged pre-existing “big ble place to live, work ideas.” For example, Deand raise a family. But Tim Daly (left) is a program troit’s Joe Louis Greenour work to maximize director at The Joyce Foundation and implement this and and leads the Foundation’s public way project was funded largely because of severfuture investment con- affairs initiatives in the Great al ingredients for suctinues.

Lakes Region. Amrit Mehra is a cess: planning that preCongress enacted public affairs consultant at The dated the pandemic, ARPA in 2021, providing Joyce Foundation. leveraging of public-pribillions to state, local and tribal governments to stimulate a ro- vate-nonprofit funds and an inclusive and bust, equitable recovery from the sustainable project design.

This is unsurprising. Policymakers were COVID-19 pandemic. Before and after the enactment of the ARPA, the Joyce Founda- asked to respond quickly to economic untion invested $8 million across 40 grants certainty in an environment filled with alongside our philanthropic partners to regulatory and political uncertainty, makbuild capacity, drive inclusive economic ing planning for new projects nearly imgrowth and help ensure the Great Lakes possible. But the implication is clear: region captured its fair share of this communities that continuously invest in planning for these opportunities gain a once-in-a-generation federal funding.

Along the way, government, community, tremendous advantage in drawing down business, philanthropy and others learned new federal dollars.

Second, the value of collaboration important lessons that should inform our work — lessons that should be applied now among federal, state and local policymakers, is paramount. But additional support as other federal resources are available.

First, we must continue developing new is still needed to expand the capacity ideas and planning for the future. The needed for effective intergovernmental Brookings Institution, a Joyce grantee collaboration.

In partnership with the Charles Stewart Mott and Masco Foundations, Joyce helped the Michigan Municipal League Foundation launch a new navigator program for local communities to receive technical assistance to access water infrastructure funding. More than 75 Michigan communities have been served by the navigator; two-thirds are underserved communities and more than 60% with populations of 10,000 or less. This highlights the urgent demand for support among some of the state’s most vulnerable communities to realize the full benefit of these funding programs.

Finally, centering equity and ensuring accountability when implementing federally funded projects should be a priority. The Council on Michigan Foundations’ Statewide Equity Fund affirmed that philanthropy plays an important role in facilitating resources to achieve these goals.

This $2 million pilot project helped steer ARPA and other federal dollars toward equity-centered approaches to advance economic prosperity in five Michigan communities. This included working with the Community Foundation of Greater Flint to create an inclusive grantmaking process that led to the distribution of nearly $60 million in ARPA funds in Flint. This equity-orientated approach helps ensure in-

vestments are reaching target populations over the long term.

While the pandemic is largely behind us, a sizable portion of Michigan’s ARPA funds must still be used. Data released by the U.S. Department of Treasury through June 2023 showed, for example, that the state must still budget $400 million in ARPA funds by 2024 and spend a majority of its $6.5 billion allocation by 2026.

Now, other federal funding programs are being leveraged in Michigan including the CHIPS and Science Act, Inflation Reduction Act, and Infrastructure Investment and Jobs Act. Together, these laws

Brookings found that the most thorough and equity-oriented approaches funded by ARP leveraged pre-existing “big ideas.” are pouring more than $3 trillion in new economic development into Michigan and nationwide.

Collaborative efforts by philanthropy and others have built a strong foundation to ensure Michigan receives its fair share of these federal investments; applying these lessons will ensure that these funds are maximized to transform our communities through multi-sector collaboration, equity and sustainability.

sizar’s eciver, ven still ardadring r.

e

ads petollar and HIPS ads, o a ndat on ered rgy. ddle ving s to sent ake

ave ible visit r report hese g in November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 15

PANDEMIC RELIEF FUNDS

MONEY

mor than reac L dred nav wat ◗ $7 lead ◗ $7 to d bin ove new pac from hole ◗ $6 par stal at M stat ◗ $4 men ◗A ture ter was of th “I bee is it the said

From Page 13

Former state budget director Chris Harkins, who was a key player in negotiations between the Democratic governor and the Legislature, said the state was “really purposeful” with the State Fiscal Recovery Fund dollars and tried to make one-time, “transformational” investments in an equitable manner. It was a primarily bipartisan effort since Republicans controlled the Legislature until Democrats took over this year.

“It was probably a one-time thing in our history of the state. I don’t think we’ll ever see those types of dollars again,” said Sen. Jon Bumstead, a North Muskegon Republican who sponsored a spending measure that doled out $2 billion in SFRF funds. “But we all thought if we’re going to spend ARPA dollars, let’s spend it where it’s going to make a difference. I think it has made a difference.”

As of Oct. 31, $4.3 billion had been obligated; $2.4 billion had been expended.

The budget office is working to ensure that if allocated funding is in danger of going unspent and being returned to D.C., “we can try to either redeploy those dollars or find another use before the end of 2024,” Harkins said.

Here is a look at some key ways Michigan is using the windfall.

Water Of the $1.7 billion for water-related initiatives, $1 billion went to the drinking water and clean water state revolving funds. They provide low-interest loans to municipalities for upgrades to water treatment and wastewater plants and the replacement of deteriorating mains and old lead service lines.

Demand is “off the charts” for the financing, said Paul McDon-

Gov. Gretchen Whitmer discusses the state’s efforts to replace lead service lines with Benton Harbor residents in August 2022. | GOVERNOR’S OFFICE

ald, who directs the finance division at the state Department of Environment, Great Lakes and Energy.

There was $1.8 billion worth of requests alone for the Drinking Water State Revolving Fund. The program had loaned $1.5 billion in its 25-year history.

The COVID funding, McDonald said, enabled the state to significantly boost grants to local governments so they did not need a loan or they took a smaller one, saving customers from higher bills to cover project costs. EGLE also was able to lend to more applicants.

The state closed roughly 200 loans via that account and the

Clean Water State Revolving Fund in the last two years, more than the previous four years combined.

“Infrastructure only lasts so long. So a billion dollars for communities that would normally have to raise rates or continue rates at a higher level to recapture money has a significant impact,” he said.

In some cases, “significantly overburdened” communities with high poverty rates or low property tax bases got 100% grants. “Overburdened” municipalities received 50% grants and 50% loans.

The accounts are being bolstered with Bipartisan Infrastructure Law funding, too.

“We’re able to meet more and

The pump gallery is pictured at Conners Creek Pump Station in Detroit. | NIC ANTAYA

Billions earmarked for local governments and schools

By David Eggert

Michigan got tens of billions in federal funding to respond to and recover from the COVID-19 pandemic.

The state had little or no control over much of it — “pass-through” funds like more generous unemployment benefits, for instance, or assistance to buy masks, conduct coronavirus testing and administer vaccines. Within the infusion of aid, however, is a subset known as State Fiscal and Local Recovery Funds.

The funding was approved as part of the American Rescue Plan that Congress and President Joe Biden enacted in 2021. And it offers recipients — the state government and municipalities — flexibility on how it is spent.

Michigan received $6.5 billion.

Some 1,800 local governments across the state got $4.4 billion.

In 2022, the U.S. Treasury De-

COVID relief funds for schools Separate from ARPA funds that went to states, schools and school districts received more than $5 billion. Districts spend their own money, then are reimbursed from federal funds administered by the Michigan Department of Education. As of Nov. 10, $5.6 billion had been allocated, $4 billion reimbursed and $1.6 million remains.

Budgeted amount by category Salaries/benefits 43.9% Purchased services 31.0% Supplies/materials 13.1% Capital outlay 8.2% Other 3.7%

Total budgeted by use Instructional/learning loss 33.8% Continuity of services 33.4% Unbudgeted 22.6% Facilities/capital outlay 6.0% Mental health/support services 2.3% Other 2.0%

Source: Michigan Department of Education

partment finalized a rule specifying four broad ways the money

16 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

could be used, including to: ◗ Replace revenue lost due to the

pandemic, to provide government services up to the amount of revenue lost. ◗ Respond to the pandemic’s far-reaching public health and negative economic impacts, helping households, small businesses, nonprofits, impacted industries, nonprofits and the public sector. ◗ Provide premium pay for essential workers. ◗ Invest in water, sewer and broadband infrastructure.

Later that year, Congress revised the program to give more discretion. Under an interim rule, the funding also can be spent on: ◗ Emergency relief from natural disasters or their negative economic impacts. ◗ Road, bridge, transit and bus projects. ◗ Housing-related projects that are eligible activities under the Community Development Block Grant and Indian Community Development Block Grant programs. They

include efforts to reduce and prevent vacant properties, including acquisition, clearance and remediation, rehabilitation and reconstruction, and homeownership assistance.

State Fiscal and Local Recovery Funds aid cannot go to pension funds or directly or indirectly offset a tax cut. It must be obligated, or committed, by the close of 2024 and spent by the end of 2026.

Separately, Michigan’s 800-plus school districts and charter schools got more than $5 billion in flexible funding from the federal Elementary and Secondary School Emergency Relief Fund. ESSER cash came in three waves, the last of which must be obligated before October 2024. It can be used in a variety of ways, including to address lost instructional time and the pandemic’s effects on students’ mental and emotional well-being.

At least 20% of the third tranche must address learning loss.

Par

O and not tou gan for ber leve S to ta infr stat roo sew par A set a in F par Cou land Dep B bec cad ban ova at foun P hav an said par call bigg the It’s Th imp mil stru of s tion use abil into COV “I son is 10 cou

preding edionas-

very sion ffset , or 024

plus ools ible menmerash t of fore in a adand nts’ ing. che

PANDEMIC RELIEF FUNDS more customers and communities than we would ever be able to reach,” McDonald said.

Legislators also earmarked hundreds of millions of flexible coronavirus relief aid directly to local water projects. That includes: ◗ $75 million for Detroit to replace lead service lines. ◗ $72 million for Macomb County to do work that will reduce combined sewage discharges and overflows by 30% and 20%, build a new pump station to increase capacity and protect basements from flooding, and prevent sinkhole disasters like one in 2016. ◗ $66 million for the Michigan Department of Transportation to install 110 to 150 backup generators at Metro Detroit highway pump stations to mitigate flooding. ◗ $45 million for lead line replacements in Benton Harbor. ◗ A $25 million sewer infrastructure grant for the Great Lakes Water Authority, which provides wastewater service to nearly 30% of the state.

“I think the money’s actually been very well spent. The problem is it’s not nearly enough because the need is so great,” Bumstead said.

Michigan fiscal recovery funds The American Rescue Plan Act, passed in 2021, and other COVID recovery-related funds designated federal money to states for projects and programs. State lawmakers determined allocations for that money into seven broad strategic goal areas. Appropriated money is the total amount to be allocated to a goal.

Committed funds are those specified to projects as part of a contract. Spent is the expenditure of money as of September 2023. The state will update spending totals quarterly.

The state has allocated $7.1 billion, committed $4.3 billion and spent $2.4 billion so far.

Appropriated Committed Spent PUBLIC SAFETY $1.3 billion $1.2 billion The gardens and conservatory at Belle Isle | LAUREN ABDEL-RAZZAQ

HEALTH CARE OUTCOMES $1.1 billion $983 million $409.1 million Investments: Immediate public health needs caused by the pandemic, as well as rebuilding the health care industry afterward.

Recipients include a new psychiatric hospital and grants to hospitals and long-term care facilities.

Parks Rendering of a proposed waterfront feature for a new Flint state park | DNR

Other big recipients are parks and trails, which are important not only for quality of life but also tourism and a push to sell Michigan as a permanent destination for young workers. Visitor numbers remain above pre-pandemic levels.

Some $220 million was allotted to tackle a decadeslong backlog of infrastructure issues within the state parks system: aging bathrooms and showers, leaky roofs, sewer and water lines, roads, parking lots, electrical systems.

An additional $30 million was set aside to create a new state park in Flint. It will be the 104th state park and the first in Genesee County, the only county without land managed by the Michigan Department of Natural Resources.

Belle Isle Park in Detroit, which became a state park nearly a decade ago after the city declared bankruptcy, got $23 million. Renovations are underway or planned at the conservatory, aquarium, fountain and other sites.

People “want and expect to have clean, safe park spaces and an atmosphere they can enjoy,” said Ron Olson, the department’s parks and recreation chief. He called the spending “probably the biggest one-time investment in the state park system since ever.

It’s a big deal.”

The $243 million for repairs and improvements is 16-fold the $15 million annual budget for infrastructure work. The vast majority of state parks funding for operations and maintenance is from user fees, which limited officials’ ability to infuse a lot of money into infrastructure until the COVID money arrived.

“It gives us a big catchup,” Olson said, noting the parks system is 104 years old. “Part two of this of course is paying attention to pre-

$1.2 billion Investments: Community violence interventions and programs that build relationships between police and communities.

Recipients include public safety departments’ payroll due to revenue loss, the Police Athletic League and community policing grants.

ventative maintenance. We’re trying to work on different strategies for that because once the money is spent, we don’t want to start going backwards again.”

Another $200 million is designated for local parks and trail infrastructure.

There is $60 million to help Detroit build the Joe Louis Greenway, a 27.5-mile recreational loop that will connect 23 city neighborhoods as well as Highland Park, Hamtramck and Dearborn.

Downtown Grand Rapids Inc. received $55 million to close gaps in a riverfront trail system and build a 23-mile trail along the Grand River in Kent County.

Some $65 million was set aside to modernize local parks and develop new local public recreation opportunities.

Fiscal cliffs?

Bob Schneider, senior research associate for the Citizens Research Council of Michigan and a state budget expert, said most of the $6.5 billion has “been programmed in one-time ways.”

While the state tapped coronavirus funds to pay corrections workers amid an initial revenue loss, for instance, it now is back to using general funds as it had before.

“I don’t think we’re really facing too many cliffs or reckonings” at the state level, he said, referring to how governments can be forced to make cuts if they use temporary federal funds for ongoing expenditures.

Michigan school districts, which separately got almost $5.2 billion in pandemic-related relief, could face challenges, especially in high-poverty communities that received more money. The state’s child care industry was stabilized

with federal subsidies for two years until the payments expired this fall. Some of the 6,400 providers dealing with that funding cliff may close their doors.

The state was in much stronger fiscal shape than expected when the $6.5 billion infusion was made a year into the outbreak. Other federal lifelines — stimulus checks and extra, longer unemployment benefits — led to a surge in tax revenues. That afforded officials an opportunity to be more deliberate, albeit while still facing a deadline to get discretionary funds out the door.

“You would want to make sure you’re spending it on one-timetype needs, one-time things or at least catchup-type things like water infrastructure and not ongoing programs where you’re going to face the cliff,” Schneider said.

“Again, at the state level, they’ve done a pretty decent job doing that.”

Two major items include building a new state psychiatric hospital complex in Northville Township and a new state public health and environmental lab in Lansing. As with other projects, they are facing higher construction costs.

A supplemental spending bill heading to Whitmer authorizes $376 million for the hospital complex that will replace two existing hospitals, up from $325 million projected 16 months ago. The lab’s budget rises to $326 million from $260 million.

Though inflation is eating into buying power, the tranche is still massive. It equals half the state’s yearly general fund revenue.

“It goes really far,” Harkins said.

“When executed correctly, the state should see benefit from these dollars really for decades.”

WORKFORCE & ECONOMIC DEVELOPMENT $1.5 billion $764.7 million $592 million Investments: Skills, training and child care programs for families, as well as support for businesses.

Recipients include health care worker recruitment and retention, unemployment funds and programs such as Pure Michigan.

ENVIRONMENTAL SUSTAINABILITY $1.3 billion $600.4 million $42.2 million Investments: Water infrastructure and other initiatives to promote environmental sustainability.

Recipients include lead service line replacement in Benton Harbor and Detroit, and the state’s drinking water and clean water revolving funds.

INFRASTRUCTURE $825.5 million $437.6 million $50.9 million Investments: Building and repairing local and state park infrastructure, as well as addressing flooding issues on state highways.

Recipients include state park maintenance and improvements, pump station generators and community revitalization grants.

EDUCATION $555.5 million $170.1 million $66.3 million Investments: Funding for students, teachers and after-school programs.

Recipients include the Great Start Readiness Program expansion, Grow Your Own, teacher recruitment and after-school programs, and mental health assistance.

GOVERNMENT ACCOUNTABILITY $35 million $29 million $10.3 million Source: State of Michigan Budget Office

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 17

NOTABLE LEADERS IN HUMAN RESOURCES Not everyone charged with the well-being of employees carries the standard job description of director of human resources. In fact, these Notable HR Leaders have titles ranging from owner to director of operations to chief client officer. All, however, have at least one thing in common: They enhance the employee experience for companies throughout West Michigan. Often, they are the first point of contact for incoming workers and the first to build a professional relationship with them. Most are trusted members of the management team and play an integral role in moving their companies forward.

METHODOLOGY: The honorees featured in this Notable Leaders in Human Resources 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 Notable Leaders in Human Resources report, and Elyse Wild wrote the honoree profiles based on the nomination forms.

Michele Banjanin

Ovell Barbee Jr.

Shannon Burkel

People and Culture Manager Symbiote Michele Banjanin manages the HR function for Symbiote Inc., transforming a family-owned business into a thriving organization in Zeeland. As a change agent, she helped recruit a diverse executive team, establishing a group that represents a blend of professionals from multiple industries.

Her experience with organizations like Herman Miller and Holcim helped elevate and shape the new culture that Symbiote has today. She prioritizes values, fostering a workplace where people want to be. She initiated programs for diversity and support to address personal challenges faced by employees. Banjanin extends her impact beyond Symbiote, mentoring students through the Grand Rapids Public Schools and guiding early-career female engineers from various organizations, shaping a positive workplace and cultivating future talent.

Owner/Principal Ovell Rome & Associates Ovell Barbee Jr., owner and principal of Ovell Rome & Associates, is a distinguished HR/DEI leader, consultant and speaker with a transformative career at Fortune 500 companies like Motorola, Blue Cross/Blue Shield, GM/OnStar and Corewell Health. Renowned for his “human-centered” approach, Barbee reduced barriers for diverse populations, drove cultural change and implemented inclusive policies. As a sought-after moderator and speaker, he chaired the 2022 and 2023 National HR Healthcare Conferences and presented at various prestigious events. Currently serving in an interim role at Liberty Dental Plan, he continues to reshape HR strategies for future growth. Barbee, a Grand Rapids native and scholarship recipient, actively contributes to diversity initiatives, including the “Barbee Book Club” supporting local students.

Chief Client Officer Axios HR Shannon Burkel’s remarkable 23-year journey at Axios HR, evolving from intern to chief client officer (CCO), showcases her strategic leadership and significant contributions. Under her guidance, Axios HR achieved a remarkable 300% increase in sales through innovative selling, digital marketing and lead generation strategies. As CCO, Burkel prioritizes client experience, satisfaction and retention, ensuring Axios HR aligns with small businesses’ needs. Over her four-year tenure as CCO, she’s led internal teams to exceed client expectations, solidifying her influential role. Beyond business success, Burkel advocates for Axios HR’s culture and values, emphasizing community, service and integrity. A true woman of power, she creates opportunities for others to succeed, marking only the beginning of her impactful leadership journey.

Leading Innovation and Growth Your dedication to continuous growth and championing employee success has been instrumental in creating a culture of innovation, creativity, and collaboration.

Congratulations to Fishbeck’s Vice President and Human Resources Director, Karen Van Drie!

fishbeck.com | info@fishbeck.com

18 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

Congratulations on being recognized as a Notable Leader in Human Resources Tracie Morris Chief People Officer Corewell Health

Thank you for your collaborative leadership and tireless advocacy in our relentless pursuit of better health. With steadfast dedication and a commitment to a future where health is simple, affordable, equitable and exceptional, you have made incredible contributions in our region and across the state.

Together, we can: Build stronger,

Make an impact in the

Improve Health. Instill

healthier communities.

lives of people we serve.

Humanity. Inspire Hope.

corewellhealth.org

NOTABLE LEADERS IN HUMAN RESOURCES

Lisa Cooper

Mary Dale

Andrew Dow

Jennifer Gonzalez

Fre

Chief People Officer Cooper People Group

Chief Human Resource Officer Convivial Brands

Chief Talent Officer Windquest Group

Lisa Cooper plays a pivotal role in shaping an effective HR structure for her clients, including rapidly growing West Michigan firm Pure Architects.

Over the past three years, she has contributed significantly to strategic planning, HR compliance, talent acquisition, onboarding, payroll, benefits and leave administration.

Serving as president of the Association of HR Management and chairing governance committees at Grand Rapids Downtown Market and North Kent Connect, Cooper is deeply involved in community initiatives. As the leader of Cooper People Group, managing six employees, she embodies their mission of enriching the world of work through innovative HR strategies. Her commitment extends to the YWCA HR Committee, showcasing her dedication to fostering impactful HR practices and community engagement.

As CHRO at Convivial Brands, Mary Dale oversees human capital management, rewards programs, diversity and inclusion, and leadership development for multiple companies. In the past 14 years, she has restructured compensation philosophies at OAM, Pine Rest, Metron and Convivial Brands, eliminating gender and racial bias. She turned around Metron’s facilities, transforming them into 5-star Medicare-rated facilities and earning recognition as one of West Michigan’s Best and Brightest Companies to Work For. She played a key role in establishing the Grand Rapids International Network, promoting economic development and business equity.

Serving on Ferris State University’s advisory board and U of M Health West Foundation board, she contributes to community development and fundraising initiatives, raising $3 million for UMHW’s support.

Director of Human Resources Pine Rest Christian Mental Health Services

Ass Res Fer

Andrew Dow, Pine Rest’s HR director, has transformed the recruitment and retention at Pine Rest since 2022.

Leading the organization’s “Great Place to Work” initiative, he engaged employees in suggesting improvements, resulting in a 50% reduction in open positions. His overhaul of the talent acquisition team, with a $14 million budget, significantly cut turnover and enhanced recruitment.

Pine Rest’s innovative programs, inspired by employee ideas, include increased bonuses, internship initiatives and the Pine Rest Nursing Student Academy. Overseeing a team of 25 HR specialists, Dow’s impact extends nationally, recruiting for Michigan’s largest behavioral health provider. Active in professional associations and community service, he strives to foster positive change in HR and health care.

Jen Gonzalez, chief talent officer at Windquest Group, combines legal expertise and HR insight to reshape talent practices. With 15-plus years in law and HR, she fosters collaborative problem-solving and redefines norms.

At UMH-West, she introduced ongoing “check-ins” in lieu of annual reviews and revamped policies for health care worker flexibility. Leading Windquest’s HR, she spearheaded a leadership development program to foster collaboration among diverse leaders, enhance skills and improve business outcomes. Gonzalez revolutionized Windquest’s compensation framework for competitiveness and employee satisfaction. She manages a team of nine and supports a diverse portfolio valued at approximately $500M extending across more than 10 external companies. Her board work has included East Grand Rapids Crew and UMH-West ImpACT.

Congratulations, FOUNDER & CHIEF PEOPLE OFFICER

Lisa Cooper

Michele Banjanin on Crain’s Grand Rapids Notable HR Leaders

PHR, SHRM-CP

Since founding Cooper People Group in 2021, Lisa and the CPG team have led the planning and execution of people-focused business strategies for nearly 100 organizations across the Great Lakes and beyond. The remarkable growth of the company stands as a testament to Lisa’s innovative approach and impactful contributions, addressing a significant gap for businesses.

Congratulations, Lisa, on your exceptional leadership in reshaping HR practices to enrich the new world of work!

Let’s plan your space today!

20 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

Fred Sta ass com recr With the team thou Hay enh pro env app mitm nity thre Pub sup and prio whe feel

in e ms. ing s re t’s

s, s

ork

f o

k ew

Fredericka Hayes

Brad Heidema

Brett Hoover

Associate Vice President of Human Resources Ferris State University

Chief Human Resources Officer Consumers Concrete Corp.

SVP, Human Resource Director Mercantile Bank

Brad Heidema epitomizes Consumers Concrete’s core values daily. With extensive experience in the concrete industry, Heidema is a Certified HR Professional with SHRM and a longstanding member of KHRMA. His commitment to learning and improvement aligns with his role in streamlining hiring processes. Managing the HR team for 250-plus employees, Heidema enhances hiring, recruiting, retention, compensation and benefits.

His innovative approach includes a swift and personalized application process, often completing interviews and extending offers within 48 hours.

His compassionate attitude shines. “I love what I do. I get to help people find gainful employment and a meaningful career.” Beyond his professional dedication, Heidema engages in pastoral care, coaches youth football and mentors high school students.

Brett Hoover, the human resource director at Mercantile Bank, is a vital member of the strategic leadership team. Promoted to his current post in 2022, his insightful guidance and knowledge help navigate daily and complex challenges. Serving as the board president for IKUS Life Enrichment Services and director for the Michigan Bankers Compensation Fund, he actively contributes to the local community. A supporter of both communities the bank serves and its employees, he champions top-notch benefits and plays a pivotal role in strategic planning. His contributions include driving growth in new markets, hiring key team members and leading the HR team. Hoover’s certifications include Senior Certified Professional for SHRM and Group Benefit Associate (GBA).

Fredericka Hayes has revitalized Ferris State’s Human Resources Department, assembling a dedicated team for comprehensive support in benefits, recruitment and overall HR functions.

With more than 30 years of experience in the field, she oversees the entire HR team, striving to meet the needs of thousands of university employees.

Hayes’ leadership has significantly enhanced recruiting and onboarding processes, fostering a welcoming environment where employees feel appreciated and supported. Her commitment to individual care and community engagement is evident from her three-decade tenure at Grand Rapids Public Schools, working tirelessly to support students both within the district and the community. Her approach prioritizes people, making HR a place where employees seek assistance and feel valued.

NOTEWORTHY The Employers’ Association recently released its 2023-24 Wage & Salary Survey Report for the West Michigan area. The results show that pay rates increased by an average of 4.12% from 2022.

Examples of pay increases: Administrative Assistant II: 5.0% Accountant III: 3.9% HR Generalist: 4.3% Punch Press Operator II: 4.2% Buyer II: 2.1% General Maintenance Person: 5.6%

Ferris State is proud to celebrate its Associate Vice President for Human Resources Fredericka Hayes for her recognition as a Notable Leader in Human Resources.

Ferris State University is an Equal Opportunity institution. For more information on the university’s Policy on Non-Discrimination, visit ferris.edu/non-discrimination.

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 21

P018-P024_CGR_20231127.indd 21

11/21/23 8:50 AM

NOTABLE LEADERS IN HUMAN RESOURCES

Mari Beth Jelks

Steven Kammeraad

Andrea Kusmierz

Laura Longstreet

Hil

Vice President of Human Resources Grand Rapids Public Museum

Director of Operations K-Line Industries Inc.

Head of People Operations Michigan Software Labs

Director of Human Resources Lumbermen’s

Tale Hun

As the director of operations at K-Line, Steven Kammeraad is a proactive and dedicated leader who played a pivotal role in the company’s substantial growth from 2021-2023. In a challenging labor market, he successfully attracted and retained skilled talent by fostering partnerships with local universities and trade schools, positioning K-Line as an employer of choice. Managing HR, IT, logistics and accounting functions, he oversaw a 75% growth rate during this period.

His hands-on approach included directly managing approximately 25 employees and building essential relationships with educational institutions. Kammeraad actively supports the Outdoor Discovery Center/ODC Network in Holland, showcasing his commitment to community engagement. He also participates in SHRM events and conferences, further enhancing his professional network.

Andrea Kusmierz, head of people operations at Michigan Software Labs, is a standout leader with a deep understanding of HR and a unique empathy for employees. Her innovative HR policies have significantly enhanced workplace culture and engagement, reducing turnover and fostering a motivated team. Her commitment extends to the community, where she volunteers and serves on the board of a local charity, showcasing her fundraising skills. Kusmierz oversees HR functions, implementing unbiased recruitment processes, inclusive mentorship programs and flexible work policies. Her efforts have notably improved efficiency and inclusivity and contributed to the company’s success.

Community involvement, workshops on career development, and contributions to professional organizations exemplify her dedication to social responsibility and professional growth.

Laura Longstreet, director of HR at Lumbermen’s, brings contagious energy and a passion for people to her role. Joining as the first HR employee-owner in the company’s history, she now leads a team of five, supporting leaders across the organization. Longstreet actively participates in Professional Women in Building (PWB) and volunteers for Habitat for Humanity and Women in Construction events. She serves as board chair for The Source and completed a term as board secretary for Family Network of Wyoming.

Longstreet prioritizes a caring approach, making culture the cornerstone of her work. Her strategic initiatives, from website redevelopment to orientation processes, contribute to Lumbermen’s growth and strengthens the employee-owner experience by fostering belonging and empowerment at every touchpoint.

Hill acq men spir eng and swi imp and men the loca trus fem stat to b sibl five initi HR pro incl Fib Mic

Mari Beth Jelks leads the HR function at the Grand Rapids Public Museum and is a dynamic force for public service, cultural diversity and DEI initiatives. Her extensive community connections drive the museum’s commitment to inclusion and accessibility. As a senior leader, Jelks prioritizes fostering an innovative and productive workforce, delivering excellent public services, engaging the community and ensuring outstanding customer service. Notably, she conducted a comprehensive compensation analysis, resulting in competitive pay structures and increased retention rates at GRPM. She also spearheaded initiatives like a family night event at John Ball Zoo, partnering with the Jim Crow Museum for a transformative exhibition and hosting discussions with influential community figures.

CONGRATULATIONS RANDI ROEHLING DISHER People Leader 2023 Notable Leader in Human Resources Congrats to every HR leader selected this year.

Thank you for Making a Positive Difference.

Brad Heidema Chief Human Resources Officer

Congratulations Brad!!

On your recognition as a

DISHER is a nationally ranked engineering, manufacturing tech, and talent solutions firm. disher.com

22 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

Notable Leader in Human Resources.

We are proud that everyone now knows what we have known for 26 years.

e, ni-

n s

ry

ner and

Hillary Miller

Tracie Morris

Brian Mortimore

Talent Experience Manager Hungerford Nichols CPAs + Advisors

Chief People Officer Corewell Health

Hillary Miller leads strategic talent acquisition, retention and development at Hungerford. Her innovative spirit drives positive change in engagement, support, DEI initiatives and flexible work schedules. Adapting swiftly to the pandemic, Miller implemented policies for remote work and virtual engagement, prioritizing mental health. Under her leadership, the firm underwent M&A for three new locations, with a focus on building trust and change management. As a female leader, Miller challenges the status quo, empowering employees to be their best selves. She is responsible for 160-plus employees across five locations and oversees HR initiatives, performance management, HRIS systems and total rewards programs. Community service includes Friends & Family of Cystic Fibrosis, DECA and Heart of West Michigan United Way.

As chief people officer at Corewell Health, Tracie Morris prioritizes a “people-first” approach, fostering a vibrant and inclusive culture. Since 2022, she has championed initiatives, resulting in a two-point increase in team member engagement. Morris focuses on attracting and retaining top talent, investing in unique recruiting opportunities and improving internal processes. Leading human resources and benefits for Corewell Health, she manages an $800 million budget.

Morris implemented enCORE, a team member recognition platform, “purpose pauses” for well-being and a value proposition to reduce turnover.

As the executive sponsor of AdaptAbilities, she advocates for disability acceptance. Morris mentors aspiring professionals, engages with organizations like Inforum Michigan and contributes to the West Michigan Education-to-Employment Partnership.

Director of Human Resources and Organizational Development Kent District Library Brian Mortimore, director of human resources and organizational development at Kent District Library, is a visionary HR leader known for innovative practices. His team implemented “evidence-based” hiring, eliminating bias in candidate selection, and converted the annual staff engagement survey to a Gallup-based format, comparing results nationally.

Mortimore leads labor contract negotiations with the UAW for 400plus employees across 21 locations.

Recognized with the National Mover and Shaker Award for Innovation in HR Practices by Library Journal Magazine, he played a key role in KDL earning Best and Brightest Companies to Work For recognition. His impact included efforts to rebuild Port Arthur Public Library’s collection after a hurricane, rallying hundreds of volunteers and donations.

NOTEWORTHY According to a 2023 SHRM survey, this is the percentage of employers who marked these benefits as very or extremely important: Health-related: 89% Retirement savings/planning: 81% Leave: 81% Flexible working: 70% Family-friendly: 68% Professional and career development: 67% Financial (non-retirement): 52% Wellness: 49% Education: 44% Technology: 37% Transportation: 13% Housing and relocation: 10%

Dedicated leadership that empowers people to thrive.

Congratulations, Hillary Miller, on being named one of

Crain’s Grand Rapids Business 2023 Notable Leaders in Human Resources. Your dedication to managing,

mentoring, innovating and giving back, within Hungerford and the community, doesn’t go unnoticed.

Thank you for taking a multi-dimensional approach to growing and developing our workforce.

Hillary Miller, MBA, SHRM-SCP Talent Experience Manager Nichols CPAs + Advisors

www.hungerfordnichols.com

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 23

NOTABLE LEADERS IN HUMAN RESOURCES

April O’Neal

Randi Roehling

Karen Van Drie

Ashley Ward

Director of Human Resources DENSO

People Leader DISHER

Founder and CEO W Talent Solutions

April O’Neal, regional director of HR at DENSO, boasts over 20 years of experience in manufacturing and corporate environments, showcasing a stellar track record of implementing impactful HR programs. Based in Battle Creek, she leads a team supporting over 5,700 employees across 10 locations. Her recent achievements include steering DENSO’s COVID-19 Task Force, implementing safety measures without disrupting customer demands. Notably, she championed strategies to attract and retain manufacturing employees, significantly reducing vacancy rates to less than 5%. O’Neal supports DENSO’s resource groups, contributing to community initiatives like the Battle Creek Pride Parade and raising funds for the Burma Center. Her people-centric approach and commitment to empowering team members mark her as a change agent fostering positive outcomes.

Randi Roehling excels in technical and tactical HR aspects at DISHER while embodying selfless and humble leadership. She humanizes the employee experience, emphasizing empathy and inclusivity. She actively advocates for marginalized groups in the community, including LAUP, WOC-GIVE and the Humane Society, and internally crafts a sense of belonging, promotes career development, and facilitates personal and professional growth for the DISHER team. She works closely with historically underrepresented groups, including women in engineering and BIPOC individuals, to advocate for equitable working conditions.

Roehling oversees payroll, benefits, legal, and culture, and manages 130 employees. She is a respected thought leader and participant in HR roundtables and associations, and her influence creates a positive impact on DISHER and the broader community.

Vice President and Human Resources Director Fishbeck Karen Van Drie is a respected leader at Fishbeck who combines entrepreneurial initiative with risk management acumen, driving impactful process improvements. Her people-first approach, coupled with humility, garners respect from her team and peers. Leading a team responsible for project milestones, Van Drie ensures effective recruiting is aligned with future talent needs. She played a crucial role in the firm’s 57% growth from 403 to 634 employees over the past five years by overseeing successful acquisitions. During the pandemic, she adapted recruitment strategies, fostering a sense of community through virtual engagement and employee well-being programs. Van Drie actively contributes to education and social well-being by serving on advisory boards and supporting initiatives like Hand2Hand.

Ashley Ward, CEO of W Talent Solutions, founded her company to give back to domestic violence organizations and shed light on the issue within the community. Leading talent strategy and brand management, Ward challenges recruiting norms in West Michigan by providing an elevated approach to placing top leadership roles. She oversees a team of approximately 10 members in Grand Rapids and a recently opened office in Detroit. In 2022, W Talent Solutions staff volunteered 225 hours and donated more than $50,000 to Grand Rapids nonprofits. Ward personally was responsible for 154 of those hours. Her board work includes the Grand Rapids Downtown Improvement District, YWCA West Central Michigan, Grand Angels and Wedgwood Christian Services.

Learn how to achieve a workplace where everyone can flourish.

Get your copy below

Find out why so many companies fail at embracing diversity, equity and inclusion.

Available at Amazon, Barnes & Noble and other retailers Go to AskOvell.com for discounts on orders of 10 books or more and for general inquiries 24 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

Brewery seizing pickleball trend with new indoor court Broad Leaf trades vacant production space for leisure activity

By Abby Poirier

A Kentwood brewery is planning to repurpose some vacant production space to add an indoor pickleball court and offer customers a new restaurant experience.

Broad Leaf Brewery and Spirits, located at 2885 Lake Eastbrook Blvd. SE in Kentwood, moved production equipment to create space for the taproom’s new venture, an indoor pickleball court, located in the brewery’s approximately 4,000-square-foot warehouse space.

Broad Leaf co-owner Kris Spaulding said the company, an offshoot of Grand Rapids-based Brewery Vivant, originally purchased the space for its ample storage capacity. The former Klingman’s Furniture warehouse spans just more than 25,000 square feet, providing ample space for onsite brewing and storage, in addition to a retail space and 99-seat taproom.

However, as the craft beer scene shifts and Broad Leaf shifts its distribution strategy, Spaulding and the Broad Leaf team had to reassess how to best use the free space.

“When we purchased that prop-

erty, everything was in a different time for our industry. So we were in the idea that we were going to grow some more and we had been renting warehouses and it just made sense to have our own space,” Spaulding said. “Now, as things have changed in the industry, through craft beer maturing and then the impact of the pandemic on how much people are drinking beer and going out, we just don’t need as much warehouse space.”

Spaulding said the company considered a wide range of methods to monetize the space, including renting storage space to other companies, but the idea that elicited the most enthusiasm from the Broad Leaf team was converting the space into a pickleball court.

“There’s this growing trend of pickleball places that also offer a bar and food,” she said, adding that Broad Leaf already had the restaurant and bar available.

The company is adding two interior courts in plans to “gamify” the space, capitalizing on the growing popularity of pickleball nationwide.

Invented in 1965, pickleball has seen a surge in recent years among

players of all ages.

The USA Pickleball Association’s annual growth report revealed that the sport added 1,557 courts across North America in 2022, an average rate of 130 new courts monthly, while the association itself added more than 70,000 members, a 30% increase over the previous year.

The Association of Pickleball Professionals (APP) reported in March that 14% of Americans over 18 years of age had played pickleball in the last six months, making a total of 36.5 million active players.

“It’s really accessible, but you can also get super competitive if you want. It has a really nice range,” Spaulding said.

Spaulding herself plays pickleball, as does Broad Leaf chef Lee DeHaan, who helped the brewery connect with Dan McConnon, owner of Byron Center’s new indoor court All In Pickleball Court, for advice on the logistics of opening the facility.

DeHaan also is considering some menu additions to appeal to the pickleball crowd.

“We’ll make certain adjustments that will be true to everything we’ve

Broad Leaf Brewery and Spirits is using excess production space at its Kentwood brewery for an indoor pickleball court. | COURTESY OF BROAD LEAF

done already, but definitely extend in the direction of the athleisure type of thing,” Spaulding said, adding that the menu will probably see more vegan options after the court opens, while the bar expands into some lower ABV drink options.

Given the brewery’s close proximity to other sports-based recreation centers like MSA Sports Spot on 32nd Street, Sky Zone Trampoline Park on 29th Street and even Dave and Busters next door on 28th Street, Spaulding believes Broad Leaf is in the right neighborhood for a sports-centric addition.

“People are so excited,” she said, adding that while regulars are excited to see the courts, she anticipates drawing a new customer base that gravitates toward athletic pastimes.

The new pickleball court will add to Broad Leaf’s already bustling

schedule of events and activities, ranging from a monthly book club offered in collaboration with Schuler Books, to book fairs for adults, trivia nights, craft fairs and regular open mic nights.

Like the new court, the events offer a way for Broad Leaf to directly interact with customers. While distribution remains important for the brand, Broad Leaf can give the full brand experience in the pub that it wants customers to have, while “in the market you just don’t have the same control,” Spaulding said.

To keep costs low, Broad Leaf is doing its own interior renovations, including shifting production equipment from the warehouse space to Brewery Vivant’s space.

Broad Leaf is planning a soft opening for the pickleball court on Dec. 1, with a grand opening at an unspecified date in early January.

Sponsored Content

NOTABLE SPOTLIGHT with Jennifer Gonzalez Driving employee growth at Windquest

Jennifer Gonzalez, a seasoned HR professional with a legal background, shapes thriving workplaces. Formerly leading HR at University of Michigan Health-West, she transformed workplace culture, earning the company a Best and Brightest Companies to Work for award during the 2020 pandemic.

Now, as Chief Talent Officer at The Windquest Group, she drives leadership development initiatives, positioning the organization for continued success. Gonzalez’s career echoes her commitment to creating enriching workplaces, earning her recognition as a finalist for the Michigan Society for Human Resources Management’s HR LifeTime Achievement Award in October 2023.

What do you find most fulfilling about your career in HR?

Why was this needed and what has been the outcome for employees?

The ability to help people grow and maximize their potential. We live in a world where most people are coming to work to give back or contribute or make a difference, right? I see HR as having that opportunity to support every employee in that journey.

We started to build more structure and transparency into the compensation process by talking with our employees about what the market rate is for their job and the value that it brings to the organization. We want to make sure we’re paying fairly for the work that’s being done, so we’ve committed to look at compensation at least twice a year. That gives us the opportunity to ensure we don’t inadvertently have somebody falling below market; our goal is that this will help with retention. The feedback from our employees has been extremely positive.

You have an extensive background in law, including 20+ years in private practice. How does that inform your work in human resources?

I hadn’t contemplated HR as a career path; I thought I was on a path to be a general counsel. I found that every industry occasionally sees some form of behavior that has both legal and HR aspects to it.

When those issues come up, there’s probably a decent chance I litigated that issue in private practice. The ability to share that real-life insight is a great asset to company leaders so we can work to solve issues.

Under your leadership at Windquest, the company pivoted toward a competitive, marketdriven compensation philosophy.

Can you talk about the Windquest leadership development initiative, and what lessons others can take away from the program?

As a society, we tend to promote people because they’re really good at what they do, yet rarely do we stop and say, “Did we ever give this person any training on how to lead people?” We did a lot of talking with our companies to figure out how we start to close that gap. This year, we launched a pilot leadership

development program with Positive Change Group that offered an opportunity for managers to spend some very intentional time on their growth and development. We just wrapped up our pilot program that ran seven months and have gotten overwhelmingly positive feedback.

We’re looking to run another cohort in 2024.

For the next generation of HR leaders, how important is it for them to build a network, such as through the Grand Rapids Chamber roundtable events?

I ended up at Windquest because of a Grand Rapids Chamber HR roundtable event. Networking can be a tremendous source of knowledge, support and a career accelerator.

Finding a friend in your field, starting a conversation, attending events and meeting more people, even if it’s not your favorite thing to do, is one of the most important things that you can do. It helps grow your opportunities.

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 25

P025 CGR 20231127.indd 25

11/21/23 3:44 PM

COMMENTARY

Sustainability is good for beer, good for the economy

GETTY IMAGES

F

or more than three decades, Bell’s Brewery has understood that operating sustainably is critical for the longterm resilience of our business. From the geothermal energy system installed under our hop yard to our process water treatment facility that converts brewing byproducts into renewable energy, many of the wisest decisions we have made over the years are those that lowered our environmental impact while also lowering our operating costs. This is not a revolutionary concept — but rather the playbook used by leaders in each and every industry.

So, we are not surprised to find that public policy designed to fight climate change is bringing significant economic gains to Michigan and its residents, businesses Carrie Yunker and communities.

This summer, stifling is executive vice heat waves and the linpresident of gering specter of wildBell’s Brewery in Kalamazoo. fire smoke brought the massive economic and public health burdens of climate change to our door, and the science makes it clear they will only worsen if left unchecked.

However, the growing efforts to fight it have also brought significant economic opportunity to the state, powering a manufacturing boom and thousands of new good-paying jobs, while the expansion of clean energy promises to reduce utility costs for households and businesses alike.

With its strong industrial legacy and ingenuity, Michigan is extremely well positioned to capture much of this new investment. In fact, it already has: In just the last year, Michigan has welcomed more than $8 billion in planned investments to manufacture electric vehicles, batteries and other clean energy technologies. The federal Inflation Reduction Act has supercharged this surge in investment, as has the state’s ambitious commitment to reduce climate pollution — effectively eliminating it by 2050 — all while creating good jobs and improving public health in the process.

Building clean energy technology is one thing. Deploying it is another. But it turns

out that Michigan can benefit even more from the clean energy boom if it adopts additional state policies that would equitably and affordably accelerate the state’s transition to clean power. Beyond the notion that the state would be doing its part to reduce pollution that is unsafely warming the planet and threatening untold economic damage to business facilities, infrastructure, workforces and commerce, recent research has found that a set of policies currently under consideration in the state Legislature would be the very solution to ushering significant investment into the state. Policies outlining a shift to 100% clean energy, the infrastructure to deliver it

and more ambitious energy waste reduction targets would result in double the amount of federal funding from the Inflation Reduction Act for the state of Michigan, while creating another 160,000 new jobs, and nearly $150 of annual energy cost savings for every household.

At Bell’s, we recognize the potential for meaningful progress is right in front us.

We’ve prioritized this work even further with initiatives like the release of our newest beer — Lager for the Lakes — an easy drinking lager bringing awareness and action to the need to protect and preserve access to clean water, as well as the formalization of our grassroots grants program — a philanthropic giving program that has already resulted in over $200,000 distributed to organizations focused on water conservation.

However, some people still find it hard to believe that we can take on the rapidly escalating challenges of climate change while growing the economy and reducing costs for Michiganders. But, having seen the positive business effects of operating sustainably since the day we brewed our first batch in Kalamazoo, we are now witnessing a potent mix of public policy and private investment bringing similar benefits to the entire economy. We applaud our lawmakers for bringing forth — and we urge them to pass — the ambitious legislation before them and double up on the state’s enormous potential as a climate and clean energy leader.

After all, good business — and good beer — depend on it.

COMMENTARY

Michigan is poised to empower its citizens (again)

By Dan Gilmartin, Delaney McKinley and Christopher Miller

A

decade ago, Michigan stepped to the front of changing the way that economic and community development happens in the state when the legislature passed MILE (initially PA 264 of 2013, now PA 141 of 2017), the Michigan Invests Locally Exemption. Michigan became just the fourth state to pass a state-based exemption that allowed non-accredited investors (about 90% of the population) to make direct investments in businesses in their own communities. These investments, now known as investment crowdfunding, have funded dozens of Michigan businesses of all kinds all over the state.

In addition to leading by being among the first, MILE also set the bar on a significant increase on how much Michigan citizens could invest. The federal exemption — the JOBS Act — allowed non-accredited investors, now commonly referred to as “retail investors,” to make investments totaling just over $2,200 a year. MILE allowed those same investors to invest up to $10,000 in a single project. Thirty-two states fol-

lowed with their own exemptions, many using MILE as a template.

Shortly after MILE passed, the Michigan Economic Development Corporation (MEDC) together with the Michigan Municipal League (MML) created a first-inthe-nation program using crowdfunding, matched by MEDC funds. The program, Public Spaces Community Places (PSCP), was a finalist in the Harvard University Innovations in American Government Awards and was internationally recognized by the International Economic Development Council with their Gold Award for Public Private Partnerships. Over 300 Michigan communities have benefitted from PSCP, creating highly valued public spaces that range from a unique curling rink facility in Calumet to a remarkable alley beautification project in Detroit. Today, several other states have their own versions of the program. In every case, they are modeled on what we did in Michigan.

Fast forward to 2022, when Rep. Bronna Kahle and Sen. Dale Zorn introduced HB 4116, another nation-leading piece of legislation that incentivizes any Michigan citizen who invests in Michigan businesses

by providing a tax credit. The bill moved out of committee in a bipartisan vote in fall 2022, but not in time to get through the House and Senate and to the governor’s desk.

In 2023, House floor leader Rep. Abraham Aiyash reintroduced the legislation as

businesses in their state; no other state has recognized that to empower all of its citizens as investors is good public policy; and no other state has concluded that just maybe those citizens are in a better position to make choices about businesses in their communities than nameless and faceless corporations, especially when those corporations often are interested in little more than how to extract the greatest amount of capital from the communities where they are located.

Congratulations to the visionary Michigan organizations that are supporting the legislation, to the visionary elected officials working to get it passed and signed into law, and to all of us, as Michiganders, who will benefit from its passage.

Dan Gilmartin is executive director and CEO of the Michigan Municipal League.

Delaney McKinley is executive vice president of the Michigan Manufacturers Association. Christopher Miller is chair of the National Coalition for Community Capital.

The bill states simply that when any Michigan citizen invests in any Michigan business (as defined by the IRS), that citizen will receive an income tax credit equal to 50% of the amount invested.

HB 4691, using the same powerful language and benchmarks as HB 4116. The bill states simply that when any Michigan citizen invests in any Michigan business (as defined by the IRS), that citizen will receive an income tax credit equal to 50% of the amount invested. No other state has offered a similar incentive for their citizens who invest in

Sound off: Send a column for the Opinion page to tim.gortsema@crain.com. Please include a phone number for verification purposes, and limit submissions to 500 words or fewer. Please include a headshot, title and organization name with the submission.

26 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P026 CGR 20231127.indd 26

11/21/23 3:36 PM

Developers to regroup after Alpine voters nix rezoning Gracewil site still can be used for some form of housing

Township Growth, led by attorney and township resident Ken Sanders, submitted a petition with 1,161 signatures to put a referendum on the Nov. 7 ballot.

Sanders, whose property adjoins the golf course, told Crain’s Grand Rapids Business last month the group’s primary concerns were over density, traffic, woodland preservation and their view that the development does not fit with the character of the surrounding neighborhood in the township of about 14,000 residents.

He said at the time that if the rezoning was overturned, he would prefer to see a development plan that would keep 18 holes of the golf course open and build about 100 homes on the other half.

Sanders told Crain’s Grand Rapids Business the day after the election he was “very pleased” that 70% of voters who turned out said “no” to the rezoning.

“The idea … (was) to send a message to the township supervisor and those trustees that voted for the amendment to the zoning … that the residents do not want development of that size,” he said.

Reached by phone, Hehrer told Crain’s Grand Rapids Business that he and Kraker will take the next few months to come up with an alternative plan that would fit within the R-1 zoning.

“We’re going to take a few

By Rachel Watson

Crain’s Grand Rapids Business opens new office downtown Waters Center site puts news organization in the middle of the action

By Crain’s Grand Rapids Business Staff

Crain’s Grand Rapids Business has moved into its permanent, new office in the heart of downtown Grand Rapids.

Located on the first floor of the Waters Center at 161 Ottawa Ave. NW, Crain’s has editors, reporters, sales and event staff working out of the location.

“We are dedicated to giving readers and business partners the most comprehensive news and information about West Michigan, and this location in the center of Grand Rapids helps demonstrate our commitment to that goal,” said KC Crain, president and CEO of Crain Communications. “We couldn’t be more excited to welcome our staff to this beautiful new space in the middle of such a thriving downtown.”

The Crain’s Grand Rapids team had been working out of a temporary space in the Waters Center since the spring. Crain’s Grand Rapids was launched in April, following Crain Communications’ purchase of the Grand Rapids Business Journal and MiBiz. Those two publications were combined into Crain’s Grand Rapids Business.

Joe Boomgaard, previously the editor of MiBiz, is the editor of Crain’s Grand Rapids Business. Jill May, who oversaw sales for the Grand Rapids Business Journal, is the director of sales and events for Crain’s Grand Rapids Business.

“This is the ideal spot for our team, in the center of such a vibrant downtown that is at the center of a growing region,” Executive Editor Mickey Ciokajlo said. “Our team wants and needs to be at the nexus of activity, and downtown Grand Rapids is clearly the place to be.”

Crain’s Grand Rapids Business is the newest of the five Crain city brands. Crain Communications also operates city brands in Chicago, Detroit, New York and Cleveland.

As with the other city brands, Crain’s Grand Rapids Business offers weekday morning newsletters via email, as well as breaking news alerts and topical weekly newsletters on real estate and health care.

Crain’s Grand Rapids also offers a host of live events and recognition programs, such as its recent lists of 40 Under 40 and Grand Rapids 200 Most Influential Leaders.

The developers behind a proposed 538-unit golf-course-tohousing redevelopment say they will take a few months to retool their plan after Alpine Township voters overturned a rezoning of the property.

With 100% of precincts reporting, Alpine Township voters on Nov. 7 rejected the rezoning of Gracewil Country Club at 2451 and 2555 Four Mile Road NW, with 1,806 voting against the rezoning and 805 voting to uphold it.

The election results overturn the Alpine Township board’s decision on April 17 to grant a request by developers Dale Kraker and Howie Hehrer of Wyoming-based JTB Homes and Interra Homes to rezone the 206-acre golf course from R-1 low-density residential to open space neighborhood planned unit development (OSNPUD).

The rezoning was to facilitate the construction of the 538-unit Wilder Crossings development.

The vote came after a group of about 15 concerned citizens called Residents for Responsible Alpine

sample plan that would contain 457 single-family homes and no shared amenities in the event that the rezoning was overturned.

Hehrer said the biggest disappointment is that under the R-1 zoning, all lots in the development would have to be 90 feet wide and a minimum of 13,500 square feet.

“The total price for the homes, on average, would be higher, so it wouldn’t have access to duplex or villa condominiums for retirees, or narrower lots for starter homes,” Gracewil Country Club is at 2597 Four Mile Road he said.

NW in Alpine Township. | GRACEWIL COUNTRY CLUB The developers previously months here to take a step back said their goal with the plan was “a and consider our options. We wide range of housing for all ages don’t have a set plan in place yet,” and incomes.”

Sanders said his group underhe said. “We’re still planning on developing it; there’s just a lot of stands they won’t get an oppordifferent variables in play right tunity for public comment on a site plan submitted by right unnow.”

The plan they proposed to im- der the R-1 zoning, but he and plement under a zoning change to his group intend to keep followOSN-PUD called for a mix of 317 ing the project.

“I’m hoping that this (election) single-family homes, 137 single-family condos and 84 duplex … sent the message that we don’t condos, with 151 of the condos want a plan this size,” he said. designated for senior housing. The “Come back with something readevelopment also was to include sonable, developer, and get it apshared recreational amenities like proved. We won’t fight you on it if a pickleball court, splash pad, we can just have communication about what we would like and clubhouse and playground.

The developers earlier this year what we might be feasibly able to provided the township with a do together.”

Advertising Section

COMPANIES / PEOPLE ON THE MOVE 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

ADVERTISING, MARKETING & PR

EDUCATION

BANKING & FINANCE

Sabo PR

E3M Solutions

Innovia Wealth

Sabo PR, an integrated communications firm based in Grand Rapids, has welcomed Cayla Smith as an associate. Smith brings a wealth of experience in journalism and social media management from her roles in municipalities, higher education and publishing. Before joining SPR, Smith worked as a multimedia journalist at the College for Creative Studies in Detroit, as social media manager and content strategist for Issue Media Group and as a digital communications assistant for the city of Detroit.

Kyle Boston joins the E3M Solutions team as Senior Energy Manager bringing 25 years of experience in the energy field.

Previously, Kyle has done HVAC testing and balancing, commissioning, MEP, and energy audits. He is a certified commissioning provider, via ASHRAE, and is pursuing his energy manager certification by early 2024. “Kyle’s ability to combine his field experience, understanding of design and passion for energy management is a tremendous asset,” shared Eric DeVries, President.

Innovia Wealth, an independent registered investment advisor and wealth management firm, announces that Tom Pantlind, CFP®, SE-AWMATM, CRPC® has joined the firm as Senior Wealth Advisor. Pantlind will lead the firm’s Sports and Entertainment initiatives, serving the complex financial, estate, and philanthropic planning needs of athletes.

COMPANIES ON THE MOVE

CRAINSGRANDRAPIDS.COM | OCTOBER 16, 2023 |

Meet 40 who are making their mark in West Michigan Welcome to the inaugural class of 40 Under 40 from Crain’s Grand Rapids Business. Building on our company’s rich history with this program and its long tenure in the Grand Rapids market, we’re excited to showcase a crop of inspirational leaders from around West Michigan who were younger than 40 (as of Oct. 1). Each of this year’s honorees was nominated by their colleagues or peers and selected in a rigorous vetting process led by the Crain’s Grand Rapids Business editorial team. The class includes many business owners, C-suite executives, founders, partners, directors, principals and managers from a cross section of industries who are already making waves in our region.We suspect they’ll become even more familiar faces in the years ahead.

CRAINSGRANDRAPIDS.COM | SEPTEMBER 18, 2023 |

FEATURED IN

CRAIN’S? License a digital reprint and extend the reach of your press coverage to social media, the web and more.

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.

Devon Joslin, 30 Managing Partner, JosVon Holdings Devon Joslin is managing partner of JosVon Holdings, where he manages a portfolio of startup investments and acquisitions, and serves as chairman of the Michigan Center for Economic Innovation. He says he’s earned his place in Grand Rapids’ economic development scene through a bit of luck and a lot of hard work.

The proud grandson of migrant farmers from Mexico, Joslin said he’s been working hard as long as he can remember.

“I don’t remember not having a job, to be completely honest,” he said. “I started playing soccer when I was three years old. I was just always going.”

That hard work has continued throughout his career.

Most recently, JosVon Holdings acquired the Grand Rapids Wanderers FC and Great Lakes FC to launch a new professional men’s and women’s arena soccer club earlier this year under the name Great Lakes Futbol Club.

“You could be the most talented athlete in the entire world, and if you don’t put in the work, you’re never going to see the field,” Joslin said. “If you’re not putting in the work, in logging the hours, you’re never going to be where you need to be when good luck strikes.”

While the hard work has paid off so far, Joslin is trying to be careful to ensure he balances work and play. He said his next big goal is building a family and a life that brings him joy aside from his work.

“Work is necessary to sustain life, but life’s worth living when you have those other things,” he said.

— Abby Poirier Reprinted with permission from Crain’s Grand Rapids Business. © 2023 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #CD23011

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.

Contact Laura Picariello at LPICARIELLO@CRAIN.COM for additional information.

*Zachary was also a 2022 GRBJ 40 Under 40 recipient.

Reprinted with permission from Crain’s Grand Rapids Business. © 2023 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #CD23009

FOOD SERVICE & AGRICULTURE

K9 Kuisine Grandville, MI 616.826.3322 k9kuisineusa.com

K9 Kuisine is the first of its kind here in West Michigan to produce and package and sell fresh raw dog food. K9 Kuisine is made with real meat, fruit, and vegetables along with natural minerals. The ingredients are locally sourced and made in store. This is a step up from many other pet foods, which are often made with processed, lower quality ingredients like by-product meals, fillers, artificial colors, and preservatives. Order online for pickup, delivery will be available by December 2023.

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 27

P027 CGR 20231127.indd 27

11/21/23 3:39 PM

ACRISURE From Page 1

the company from insurance product sales-driven to using technology to anticipate and meet clients’ business needs, from cybersecurity services to payroll and payment processing. That’s why the company is increasingly using the term “fintech” to describe itself rather than just “insurance brokerage,” Williams said.

“The reality is, we’re in the process of changing almost everything about our business,” Williams said during his presentation.

He estimates the transformation will help grow the company from its current $4.3 billion in annual revenue to roughly $8.5 billion to $9 billion by 2027.

Williams acknowledged that transforming the business has drawn critics who have called the company “crazy” for changing a “winning formula” that has already propelled Acrisure to becoming

MEIJER From Page 1

ratified in 2020, expires in February 2024.

Cakmakci said UFCW 951 also wants to enshrine specific protections for events like the COVID-19 pandemic in the contracts to ensure the safety of its members.

The contract negotiations follow a rough series of years for essential retail workers as initial support from the public gave way to frustrations when workers enforced masking and other COVID-19 protocols.

“With everything that people have gone through in the last three years with COVID and everything, I think our members felt like they were forgotten,” Cakmakci said, noting that the ill treatment of employees came from the public itself, rather than from employers.

“There was a tendency for our members to feel like they didn’t matter.”

So far, Cakmakci characterized the negotiations with Meijer as going well, owing to the union’s positive relationship with the retailer.

Cakmakci said Meijer histori-

MUSKEGON From Page 3

“We all have a vested interest in protecting that amazing natural resource that is Muskegon Lake and, by extension, Lake Michigan,” Johnson said.

The city also has a stake in the development, after approving an option agreement last month to buy 10 lakefront parcels to increase public access at Windward Pointe.

If Parkland Properties goes on to purchase and develop the property as proposed, the company would be obligated to prevent the exacerbation of existing contamination on site and ensure the property is safe for its intended use, said Chris Miron, vice

the sixth-largest insurance brokerage in the world, according to a July 2023 Business Insurance ranking.

“I only care about what is our potential and fulfilling that potential,” he said. “What others are doing, I don’t care.”

Acrisure’s journey to an AI-driven business model began in 2019 through a joint venture with Pittsburgh-based AI insurance platform Tulco and resulted in Acrisure buying Tulco’s insurance practice in 2020 for $400 million.

“Most of the people in the room from Acrisure that are here, if I injected them with truth serum and said, ‘Tell the truth,’ they’d say they thought I was nuts in 2020 for investing $400 million in artificial intelligence,” Williams said. “Fast forward three years, and I don’t know if we’d find anybody thinking that we’re nuts.”

Eight months after the acquisition, Tulco’s former executive vice president, Matt Marolda, joined Acrisure as chief innovation officer.

Within two years, he built an “inno-

vation team” that numbered 150 employees as of April and had rolled out three proprietary AI platforms: One for sales called Auris; one for employee benefits quoting called Suvaun; and a third, unnamed marketing platform that helps the company find and target new clients.

Since 2019, Acrisure has gathered 141 billion data points on 170 million Americans, or about 800 data points per person, Williams said. That data is used in predictive modeling and propensity rankings to give the company inroads into better tailoring its marketing and sales efforts to the right audiences, cutting spending through tech efficiencies.

As a result of the AI investment, the company’s “producers,” or sales staff, who use Auris have grown their book of business 3.4 times faster than those who do not, Williams said.

Additionally, the company has massively expanded its reach with American businesses as part of its

reinvention strategy. Today, one in every 20 businesses in America (5.4%) is an Acrisure client, Williams said.

Acrisure has historically used an aggressive mergers and acquisitions strategy to drive the company’s revenue growth. However, 2023 is the first year since 2017 that the company hasn’t aimed for 100 or more acquisitions. Acrisure has closed “only” about 75 deals so far this year, Williams said.

That’s partly because of a more expensive capital environment because of interest rates. The other component is that — besides becoming AI-driven — Acrisure is focusing on other strategies in its transformation plan.

That includes changing its operating model by integrating its 1,000 “partner agencies” that previously operated with independent brands into the Acrisure brand and dividing them into 18 regions across the company’s 21-country footprint by 2024.

Another strategy is investing in brand building through naming

rights deals and sponsorships like the $30 million donation that secured the naming rights to the Acrisure Amphitheater planned in downtown Grand Rapids, as well as the naming rights to the home stadium of the NFL’s Pittsburgh Steelers.

Williams told Crain’s Grand Rapids that while Acrisure “at this juncture” is not involved with committing a naming-rights sponsorship for the proposed Grand Rapids soccer stadium, the company is “keeping apprised of what’s going on” with the project.

Rounding out its other goals, Williams also said the company is in the middle of a yet-to-close fund raise that, when completed, should give Acrisure a valuation of nearly $27 billion. In May 2022, the company closed on a $725 million Series B-2 preferred equity raise and received a $23 billion valuation.

“Frankly, for me, the thing I’m most proud of is not what we built,” he said. “It’s what we’re transforming (into) … something that’s different and better.”

cally has set a standard for negotiations with other employers, and the company’s leadership is aware of what their employees faced as essential workers during the pandemic.

“I think there’s an appreciation of what (essential workers) did,” he said. “They do think that they can and should do more. The question is: How much more?”

In a statement provided by Meijer, the company said it was looking forward to successful negotiations.

“We value the contributions of all Meijer team members and their partnership in serving our customers and communities. We have a positive relationship with both our team members and the UFCW and anticipate productive negotiations,” the company said in a statement provided to Crain’s Grand Rapids.

The negotiations are underway during a national shift in public sentiment about unions.

Aaron Sojourner, senior researcher at the Kalamazoo-based W.E. Upjohn Institute for Employment Research, attributes that shift to a confluence of economic, cultural and political factors.

As employers struggle to hire and retain workers in the postCOVID environment, union employees view striking as a less risky endeavor given that their employers are more likely to bargain with them, Sojourner said.

“It’s really risky to go on strike, but now those risks are a little lower, workers are producing a lot of value and companies have a lot of revenue in them,” he said. “The benefits of workers pushing hard are higher than usual (and) employers are able to give more on their end.”

At the same time, President Joe Biden’s pro-labor administration and a cultural shift in favor of labor workers are creating a positive environment for unions to turn up the heat. Sojourner added that since the pandemic, employees have higher expectations for how their employers will protect them and are more willing to advocate for their rights.

“One big thing the pandemic did was show people that their bosses have a lot of power,” Sojourner said. “People took jobs and worked under certain expectations, and then the pandemic hit and a lot of bosses changed the

rules. I think a lot of people had their expectations violated and (realized) they don’t like being so vulnerable to changes.

“We are actually at a place where unions are more popular and the public is more supportive of workers organizing and trying to achieve their goals,” Sojourner said, adding that this might be “one of the best times” in recent U.S. history for unions.

Recent Gallup polls indicate that roughly two-thirds of Americans approve of labor unions, a figure that has been steadily climbing since 2009, when union approval was at an all-time low in the U.S. While negotiations with Meijer remain in the early stages, Cakmakci said the overwhelming feeling among union workers and representatives is one of positivity.

“People are pretty excited about our prospects,” he said, adding that UFCW members anticipate getting “great contracts” with Meijer, which, in turn, puts pressure on non-union players in the retail industry to “pony up.”

“It’s putting pressure (on companies) in the right way, which is pushing everyone’s wages up,” he

said.

That situation also played out among non-union automakers in the wake of the UAW strike. After the UAW reached tentative agreements on lucrative new contracts with the Detroit Three, Toyota, Honda and Hyundai all increased wages, as Automotive News reported.

Indeed, Cakmakci said the UFCW has been paying close attention to the UAW contract negotiation process and gaining inspiration along the way for what the union might accomplish for its members.

“I’m excited by what the (UAW) were able to accomplish for their members, and I’m looking forward to the same thing for us,” he said.

Echoing Sojourner’s sentiments, Cakmakci remains bullish about the union’s prospects in light of shifting public sentiments.

“I’ve been doing this as a fulltime representative for almost 40 years,” said Cakmakci. “This is the first time in my career that I see the positivity surrounding unions. It’s never been quite this optimistic for labor.”

president and senior chemical engineer for Barr Engineering.

Parkland Properties is working with EGLE to put together a due care plan for the property. Such plans typically do not include continued monitoring of contamination, Miron said, though he noted the proposed development should lower the risk of PFAS leaching into the lake.

As the due care plan is developed, an impermeable cover will be used to cap contamination of the site, he said.

“We’re not just going to do the bare minimum,” Rooks said.

“We’re here doing a project that we want to do. … We’re from here and live here and wouldn’t be buying the property if we didn’t think it was feasible.”

Officials from three environ-

mental firms — Barr Engineering, Fishbeck, and Environmental Resources Group — stated in writing that they believe the site could be safely redeveloped into a

in 2022 a $15 million state grant was allocated to mitigate PFAS on the property. State lawmakers on Nov. 2 moved to expand the use of the grant to environmental mitigation and cleanup activities on the site beyond PFAS. The state absolved the former property owners of PFAS mitigation because PFAS was not well-understood until more recently, Jacob Eckholm, the city of Muskegon’s director of development services, said during the meeting. Because of that, the state is effectively subsidizing the site’s cleanup with the $15 million grant, Eckholm said.

He also noted that there is no

definitive evidence of PFAS leaching into the lake from the property.

Similar to Johnson, City Commissioner Rebecca St. Clair shares the public’s environmental concerns but is still supportive of the development.

“There are not a lot of people lining up to fix this problem,” St. Clair said. “While we can and should be very concerned about the potential impact of this, we also need to be very concerned about the potential of waiting. … I don’t see a way forward but to do this.”

Pending the EGLE and U.S. Army Corps of Engineers approvals, Rooks hopes to close on the property acquisition before the end of the year and start construction in 2024.

“We all have a vested interest in protecting that amazing natural resource that is Muskegon Lake and, by extension, Lake Michigan.”

— Ken Johnson, Mayor of Muskegon mixed-use community with residential uses.

Rooks and city officials explained during the meeting that

28 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P028 CGR 20231127.indd 28

11/21/23 3:42 PM

GRANTS From Page 3

applications we’re getting now are a lot stronger than we have in the past.”

The DDA’s retail innovation grant program launched in June 2018 with the goal of reducing barriers for small businesses to open a location in downtown Grand Rapids — with a focus on businesses owned by people of color and women. Sixteen of the 19 grants approved prior to Shinola’s went to businesses owned by women, while 11 of the 19 businesses were BIPOC-owned (Black, Indigenous, people of color), according to DDA data.

Money for the grant program comes from tax increment financing in the downtown district.

Since the program launched, the DDA has awarded about $595,000 across the 20 grant recipients, with Shinola receiving the third-highest grant allocation after Gazelle

PARTNERSHIP From Page 1

projects. BAMF’s role can range from consulting with health systems to adopt the use of the medical technology, to operating a clinic, recruiting and training staff, designing and building a facility, and even managing a clinic on their behalf.

The strategic partnership will further BAMF Health’s goal “to make these brand-new technologies accessible and affordable to every single patient who need it as soon as possible,” said Chang, the company’s founder and CEO. “We know how to use this kind of equipment for this kind of purpose.

This gives us a very unique vision about how to put this field forward,” Chang said. “We have the knowhow, we have the technology, GE has the equipment, and GE also has the mindset believing in this technology and they want to share the same mission and vision and try to bring this to every single patient. They have a national network and understand who needs it and who wants it, and how to work with them.”

BAMF Health opened its first theranostics clinic in 2022 at the Doug Meijer Medical Innovation Building on Michigan State University’s research campus in downtown Grand Rapids. The company began treating patients with stage four prostate cancer and is involved in research and clinical trials to extend into treating other forms of cancer, including lung, pancreatic, brain and neuroendocrine tumors.

It also is researching the medical technology’s potential for patients with Alzheimer’s disease.

BAMF Health was the first user in the U.S. and second in the world to deploy GE HealthCare’s advanced medical imaging scanner for patient use and first globally to use its cyclotron to produce radiopharmaceuticals to treat cancer.

“We are the frontline soldiers.

We advanced this technology a lot.

We know how exactly the technology needs to go,” Chang said. “Combine the vision and combine the force (of GE HealthCare) and we’re

Sports ($67,000) and Pack Elephant ($67,500), which has since relocated to the former Sligh building.

Four of the 20 businesses that received a grant from the program over the past five years have since closed: Ambiance GR Kitchen and Lounge, Mel Styles, Art Caribbean Fusion Cuisine and The Color Forest. Two businesses — Pack Elephant and Basic Bee — have relocated outside of downtown.

Since reopening the program, the DDA encourages applicants to get involved with local business associations and organizations, and the DDA is giving priority to applicants working with entrepreneurial support organizations like SCORE or Grow, Eledge said.

“We’ve seen the quality of business plans and full understanding of operations is much stronger for business owners that come out of those support programs, and found those businesses just do better because they are supported,” Eledge said.

While the retail innovation grant program was on pause last year, the DDA developed three other grant programs to support existing businesses downtown. That included grants for technical upgrades and establishing e-commerce; a grant to collaboratively market with other businesses; and a grant to host promotional events downtown, Eledge said.

The DDA’s goal is to keep businesses downtown, but Eledge does not view the two businesses that relocated elsewhere in the city as a failure, he said.

“If we can play some part in helping them open and getting their feet on the ground, we consider that a win,” Eledge said.

While progress is being made on getting more diversity and density of businesses downtown, more work needs to be done, said Jermale Eddie, a DDA board member and the director of business development for SpringGR. Eddie is the former co-owner of Malamiah

going to facilitate the field.”

GE HealthCare (Nasdaq: GEHC) is one of the world’s largest medical technology and pharmaceutical diagnostics companies with 50,000 employees. The corporation on Oct. 31 reported $4.82 billion in sales for the third quarter with $375 million net income. Year-to-date sales totaled $14.34 billion with net income of $1.16 billion.

“GE HealthCare’s holistic approach to theranostics brings together critical teams, data and decision-making needed to deliver precise, personalized care for patients,” Catherine Estrampes, president and CEO at GE HealthCare in U.S. and Canada, said in an announcement on the BAMF Health partnership. “Together with BAMF Health we are thrilled to draw upon our shared expertise to advance the adoption and integration of theranostics care.”

Chang believes theranostics can “majorly replace chemotherapy in 10 years” as a cancer treatment and that molecular imaging will “majorly replace” biopsies to diagnose patients.

“That’s the vision we have, that’s the world we see, and that’s the world we want to move toward into together,” he told Crain’s Grand Rapids Business.

The partnership with GE HealthCare runs for seven years, “but we intend to do more,” said Laurie Placinski, vice president for real estate, design and partnerships at BAMF Health. A steering committee “will continue to seek out opportunities to evolve and enhance the partnership, and in turn support the needs of health care,” Placinski said.

Through the partnership with GE HealthCare, BAMF Health can offer health systems a playbook to deploy the technology and develop and operate a theranostics clinic.

In the last few years, GE HealthCare has met with more than 200 hospitals nationwide to discuss theranostics and came away with an understanding that several use the technology on a small scale “but lack the ability to grow larger,” Placinski said. Others do not use theranostics at any level, “but have

the interest of incorporating that into their service line,” she said.

“What all of them are lacking is the knowhow to do that incorporation and move quickly,” Placinski said. “So, the reason BAMF is so enticing to GE is because we’ve built this comprehensive playbook and knowhow from a platform perspective to come in alongside GE, who wants to be positioned as a thought leader as well, to work with these systems to enable standing up theranostics whether it’s through the use of technology, build operations, radio pharmaceuticals.

That’s really where we’ve developed a kit of parts that can come in and complement and enhance the system, versus compete with the system.”

As the first adopter of GE HealthCare’s scanner and cyclotrons, BAMF Health has become a “market show space” for the corporation that has drawn representatives from health systems and cancer centers from the U.S., Canada, Africa and Europe to learn about theranostics, she said.

“People are coming to see, ‘What is it you’re doing, can we partner, can you help us, what does this look like, can we learn from you?’” she said.

Since opening last year, BAMF Health has treated 400 cancer patients at the downtown Grand Rapids theranostics clinic. The company envisions opening a network of clinics across the country and is engaged in six “active conversations” with potential partners nationwide for additional locations, including in Detroit, Texas and California, Placinski said.

The company also is working on a $75 million Series C growth capital round. Investors have so far committed more than 65% of the fundraising goal, Chang said.

As BAMF Health pursues the capital round, the strategic partnership with GE HealthCare will help with brand awareness and enhancement, Placinski said.

“This further enhances the conversations we have with potential investors and allows us to further target those,” Placinski said. “It’s credibility and validation.”

Juice Bar and Eatery, which shut down a downtown location and one in the YMCA earlier this year.

“We know that our downtown does not have an overwhelming amount of BIPOC-owned businesses, so when one closes, it stings a little harder,” Eddie said. “I believe we need to have an intentional and communal plan and insight when it comes to BIPOC businesses being attracted to and surviving in our downtown.”

The DDA’s grant programs are beneficial, but it is important to not create more barriers for who can apply, Eddie said.

“We have a lot of entrepreneurial support organizations in our city,” Eddie said. “As everyone begins to work together more, I think we could see an increase in BIPOC-owned businesses, but one thing we can’t do is continue to say this business owner needs more education or take another workshop or class — sometimes the best thing we can do is write a

check.”

Eddie’s own business, Malamiah Juice, closed its two Grand Rapids locations over the summer after 10 years of operating.

“There weren’t a lot of these services out there when we were in business,” Eddie said. “We did it on our own because the resources weren’t always there, and as we learned we began to share resources with anyone who asked us questions.”

The COVID-19 pandemic took a toll on the juice company, especially since opening a storefront in Studio Park downtown a few months before state-mandated shutdowns in 2020.

“We didn’t have assets or properties to sell, or an inheritance to lean on,” Eddie said. “It is harder, oftentimes, for BIPOC-owned businesses to achieve certain levels of success in various cities, but as each one of us accomplishes success, we have more knowledge to share with the next generation.”

LGES Michigan’s expanded campus in Holland. | LG ENERGY SOLUTION MICHIGAN

LG ENERGY From Page 3

The layoffs come as LG is working to expand its Holland plant and position the company as a leader in the electric vehicle battery market.

LG initially announced the $17 billion expansion project in March 2022 under plans to add more than 1 million square feet of manufacturing space and more than 1,000 new jobs.

At a media preview event this summer, the company showcased construction progress on the addition, which will consist of a new main facility plus several other buildings.

The Michigan Strategic Fund board this summer approved LG’s

request to extend certain milestones required to receive state incentives after delays with the initial project rollout.

In October, LG Energy Solution announced an additional $3 billion investment as the company secured a new contract with Toyota Motor North America Inc. to supply lithium-ion battery modules. A tax abatement for that expansion is still subject to local approval.

“LG Energy Solution continues to grow and has a bright future in the automotive industry,” the latest statement said. “The major expansion project for our second facility is well underway. And, with the recent partnership announcement with Toyota, we will supply batteries to all five top global automakers.”

November 27, 2023 | CRAIN’S GRAND RAPIDS BUSINESS | 29

P029 CGR 20231127.indd 29

11/21/23 3:46 PM

THE CONVERSATION

Nonprofit helps build viable business model for child care providers in Kent County Kent County needs about 20,500 additional early childhood education slots to meet demand, which comes on top of persistent inequities that make child care less accessible and unaffordable for low- and middle-income families. These are some of the key findings of a recent report from nonprofit Community Development Financial Institution IFF and help provide a baseline needs assessment for the community. Jennifer Headley-Nordman says such data is a crucial starting point to help fill child care gaps and deploy resources to families and care providers. As the president of First Steps Kent, Headley-Nordman oversees the organization that administers the countywide Ready by Five millage, which generates about $6.7 million a year for early childhood programming. First Steps Kent also focuses on reducing barriers for the roughly 300-400 licensed in-home care providers in Kent County in an effort to create a viable business model as expenses and time often drive providers out of the industry. Headley-Norman recently discussed Kent County’s child care challenges ahead, making a business case for providers, and early efforts to renew and expand the Ready by Five millage. | By Andy Balaskovitz What’s the strategy for reaching the goal of adding about 20,500 child care slots in Kent County?

The first part of the process has been … looking at the variety of reports that have been released … to really help us quantify (the problem). There’s regional planning work that The Right Place and Vibrant Futures is helping lead and locating where the need is. And then it’s moving into the next phase, which is about how we can strategically leverage state and federal dollars.

How can we be smart about local investments to try to move the needle where we’re able to? And those fall to areas like workforce development. We know we have a shortage, and so addressing those types of needs, addressing business-related functions so that early childhood professionals and providers can have more efficiencies, which hopefully can translate to better cost savings for them as businesses.

How can local leaders or policymakers make child care not only less expensive, but also a viable business model for providers?

One is recognizing and acknowledging that being in the early childhood space — whether you’re a teacher or a business owner — (requires a) level of professionalism and training … that is important. It’s us really talking about elevating the profession, which then can translate into livable wages. Then also talking about the slim margins right now for child care providers.

It should be OK to talk about, in a healthy business model, the need to have some profit attached to that in order to ensure that you have quality and can maintain staff. How can we elevate, promote the profession, show respect to the profession moving forward, and then just build out the ecosystem from there to provide stability and longevity?

When talking about elevating and promoting the profession: Is this a need that has emerged in the past few years during the pandemic, or did the pandemic just exacerbate the issue?

current millage language may benefit from some evolution to provide some flexibility in how we might leverage dollars moving forward. One of the things that the tri-share model does is it has the employer pay a third, the child care provider pay a third, and then the employee ends up paying a third. It’s a cost savings to employees, but within the current system that’s been created, there are some limitations in terms of funding.

If there were a funding stream that would be able to support an individual or individuals throughout Kent County doing some of the navigation piece and to be able to expand that to increase some additional media and some other pieces just from a marketing standpoint so more individuals are aware of the work, that could be beneficial.

Here in Kent County, Vibrant Futures is the tri-share provider, but even within that, I think there still are some capacity limitations and there’s some opportunities for additional funding.

Jennifer Headley-Nordman is president of First Steps Kent.

There was a looming child care crisis even prior to the pandemic, and I think that the pandemic just brought a new twist to the challenge and parents found themselves in a position that they hadn’t been in before. Then we saw that there was a bit of a mass exodus in terms of those who maybe were working in the field or running child care decided to leave because of some of the stressors involved in the pandemic. Then when you look historically, the profession has been predominantly women.

The profession comes from some origins that have not always allowed the profession to have the level of respect that it needs and it deserves moving forward.

One program supporting in-home child care providers is the Mainspring Early Care Alliance. How did this program get started and how is it being deployed?

Mainspring Early Care Alliance evolved as a shared service pilot.

Providing some support to those who are in the profession and providing some of that backend expertise is really at the hub of

what Mainspring Early Care Alliance is about. It’s a collective, so it’s an advisory of early childhood care professionals who are running in-home businesses that are representative geographically and from a diversity standpoint and a variety of preferred languages who are running businesses within their home environment.

It’s an opportunity for them to come together and have conversations about what’s important to them, what they find to be barriers or challenging, and doing that work on a day-to-day basis.

Is First Steps Kent involved in any cost-sharing programs where you’re getting employers involved to help share in the cost of their employees’ child care?

This is really the landscape that we’re starting to enter. One of the things that we are doing is the Ready by Five millage will expire at the end of 2024.

We’re currently in the process of exploring the millage being placed on the ballot in 2024 with some recognition that the

Do you foresee an increase to the level of funding that you’re getting now?

As part of our application, we did request a modest increase of funding. … We do recognize that the original millage did not include things like child care to the scope in which we feel that we can move the needle and to help support with some of those gaps.

The other area is just to continue to keep pace with the current programs and services that are being funded. We are recognizing, especially post-pandemic, that the number of individuals that are qualified for and needing different types of services and programs, and those can be anything from home visiting to health-related.

We’ve also seen a dramatic increase in the number of families that are seeking support for social-emotional needs for their children. Preschool providers are also indicating that some of the behaviors that they are seeing within the classroom environment really warrant some additional investment and support as children are moving out of the pandemic.

CrainsGrandRapids.com President and CEO KC Crain Group publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com Executive editor Mickey Ciokajlo, mickey.ciokajlo@crain.com Editor Joe Boomgaard, joe.boomgaard@crain.com Managing editor Andy Balaskovitz, andy.balaskovitz@crain.com Special projects editor Tim Gortsema, tim.gortsema@crain.com Director of audience and engagement Elizabeth Couch, elizabeth.couch@crain.com Audience engagement editor Matthew Pollock, matthew.pollock@crain.com Creative director Thomas J. Linden, tlinden@crain.com Associate crative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Senior digital news designer Stephanie Swearngin Notables coordinator Ashley Maahs REPORTERS Kate Carlson, real estate, kate.carlson@crain.com Jack Grieve, audience engagement, jack.grieve@crain.com Abby Poirier, restaurants, retail and agribusiness, abigail.poirier@crain.com Mark Sanchez, health care and finance, mark.sanchez@crain.com Kayleigh Van Wyk, manufacturing, technology and law, kayleigh.vanwyk@crain.com Rachel Watson, residential real estate, insurance and tourism, rachel.watson@crain.com Danielle Nelson, research and data, danielle.nelson@crain.com ADVERTISING Senior vice president of sales Susan Jacobs, susan.jacobs@crain.com Advertising & event sales director Jill May, jill.may@crain.com Account executives Shelly Keel, shelly.keel@crain.com Jennifer Maksimowski, jennifer.maksimowski@crain.com Michigan events director Samantha Flowers, samantha.flowers@crain.com Marketing and events coordinator Matthew Chaffee, matthew.chaffee@crain.com People on the Move manager Debora Stein, dstein@crain.com Classified sales Suzanne Janik, sjanik@crain.com Sales assistant Rachel Smith Inside sales Tawni Sharp 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 MI 48207-2732; (313) 446-6000 Volume 40, Number 24 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, MI 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, MI 48207-2732.

30 | CRAIN’S GRAND RAPIDS BUSINESS | November 27, 2023

P030 CGR 20231127.indd 30

11/21/23 4:14 PM

SHOWCASE INDUSTRY LEADERS AND THEIR CAREERS RECOGNIZE TOP ACHIEVERS IN GRAND RAPIDS’ PREMIER PUBLICATION New Hires / Promotions / Board Appointments Retirements / Special Acknowledgments

MAKE AN ANNOUNCEMENT Debora Stein / dstein@crain.com

CrainsGrandRapids.com/POTM

We hear you.

And we’re here to help.

All through 2023, we listened — to our clients, teammates and the many communities we serve.

And truly hearing what they would like the power to do helped us strengthen our partnerships — and welcome new ones along the way. From couples just starting out to entrepreneurs looking to launch a business, together we accomplished a lot. We can’t wait to see what 2024 has in store.

Renee Tabben President, Bank of America Grand Rapids

Learn more at bankofamerica.com/grandrapids

What would you like the power to do?®

Bank of America, N.A. Member FDIC. Equal Credit Opportunity Lender. © 2023 Bank of America Corporation. All rights reserved.