Crain's Grand Rapids Business, March 4, 2024

CRAINSGRANDRAPIDS.COM I MARCH 4, 2024

DeVos family puts $50M toward three pediatric projects Various programs from Corewell Health, Pine Rest and Mary Free Bed all will benefit

By Mark Sanchez

Renderings of the proposed soccer stadium show the venue on Grand Rapids’ west side. | PROGRESSIVE AE

DEVELOPER FILES SOCCER STADIUM CONSTRUCTION PLANS Initial investment for 8,500-seat venue could top $108 million

By Kate Carlson

Grand Action 2.0 has filed formal construction plans with the city of Grand Rapids for an 8,500seat soccer stadium, marking at least a $108 million investment on the city’s west side.

The Grand Rapids City Planning Commission is scheduled to consider the developer’s special land use request, which was filed Feb. 23, at a March 28 meeting.

The soccer stadium is one of two skyline-changing projects the power-broker group chaired

by Carol Van Andel, Dick DeVos and Tom Welch is working to develop in Grand Rapids, along with Acrisure Amphitheater.

Grand Action anticipates the stadium will require an “initial investment” of $108 million for the conceptual design stage and estimates the facility will employ 260 people, according to the

planning application. The project is also applying for grants from EGLE for utilities on site.

The application follows weeks of recent community engagement sessions that Grand Action 2.0 led across the city.

“We feel really good about the level of engagement from the community and also the response we got (during community input See SOCCER on Page 21

A $50 million gift from the DeVos family will support a new psychiatric and medical care unit at Corewell Health’s Helen DeVos Children’s Hospital and pediatric facilities for Mary Free Bed Rehabilitation Hospital and Pine Rest Christian Mental Health Services.

Of the donation from the family foundation, $40 million will back development of the 12-bed, $7 million unit at Helen DeVos Children’s Hospital that will become the first in Michigan to blend medical and mental health care for young patients. The donation will also support expanding a comprehensive care pro-

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| COURTESY OF MARY FREE BED

gram and pediatric intensive care unit at the children’s hospital. DeVos Children’s Hospital’s pediatric ICU will expand capacity from 30 to 44 beds.

Mary Free Bed and Pine Rest will each get $5 million for pediatric care centers that they’re building through joint ventures with Helen DeVos Children’s Hospital.

See DEVOS on Page 20

Small business confidence wanes Survey finds economy, inflation and labor woes still are significant challenges

By Mark Sanchez

Small business owners across Michigan feel a little less optimistic about the short-term future, as inflation, economic uncertainty, staffing shortages and the resulting higher labor costs take a toll on their confidence.

Nearly half of the small business owners answering a Small Business Association of Michigan quarterly survey said they were “somewhat” or “very optimistic” about their prospects in the coming six months. That’s down seven percentage points

VOL. 41, NO. 5 COPYRIGHT 2024 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

A $50 million donation from the DeVos family will support Mary Free Bed Rehabilitation Hospital’s plans for a pediatric care facility.

from a year ago.

The results from the latest SBAM member survey showed a continued “moderate, but steady decline in confidence” over two years coming out of the pandemic and related restrictions, President and CEO Brian Calley told Crain’s Grand Rapids Business.

The economy, inflation, and labor shortages were cited as the biggest challenges that small business owners face.

“If you look back a couple of years, you see the economic See SURVEY on Page 20

NEWSMAKER KC Crain interviews Carol Van Andel, Grand Action 2.0 co-chair and Newsmaker of the Year

MANUFACTURING Haworth enjoys growth streak amid office uncertainty

REAL ESTATE ‘Enchanted’ 129-year-old Kalamazoo castle lists for $5M

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2/28/24 11:17 AM

OPEN FOR BUSINESS

Crain Communications celebrated the opening of its newest City Brand, Crain’s Grand Rapids Business, at an open house for business and civic leaders held Monday, Feb. 26.

KC Crain, president and CEO of Crain Communications, hosted the leaders at an open house in the new office of Crain’s Grand Rapids Business in the Waters Center in downtown Grand Rapids. Crain Communications entered the West Michigan market in the late summer of 2022 when it acquired the Grand Rapids Business Journal.

Four months later, Crain purchased another Grand Rapids-based business publication, MiBiz. After merging the two operations, Crain’s Grand Rapids Business was launched in April 2023. The newly combined newsroom and sales staff moved into their new downtown office in November. Grand Rapids joins Crain’s Chicago, Cleveland, Detroit and New York in the stable of Crain City Brands. “A great business market deserves an equally strong news organization to keep it informed,” Crain said. “The official opening of our doors in Grand Rapids marks a significant milestone in the Crain’s Business expansion.” | PHOTOGRAPHY BY SETH THOMPSON

Congratulations to the 2023 Newsmaker of the Year and all of the finalists on their significant contribution to the stories that made headlines. We are grateful for your hard work and dedication to West Michigan.

– David & Carol Van Andel on behalf of the Grand Action Committee

2 | CRAIN’S GRAND RAPIDS BUSINESS | March 4, 2024

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Here are the winners from the inaugural Crain’s Grand Rapids Business Newsmakers of the Year awards: w Arts and Entertainment: Dale Robertson, Grand Rapids Public Museum w Economic Development: Ben Smith, Scott Magaluk and Dennis Griffin, Heritage Development Partners w Education: Philomena Mantella, Grand Valley State University w Finance: Tim Streit, Grand Ventures w Food and Beverage: Andy Havemeier, Wealthy Street Bakery and Hall Street Bakery w Health Care: Dr. Mark Eastburg, Pine Rest Christian Mental Health Services Crain Communications President and CEO KC Crain with Grand Action 2.0 co-chair Carol Van Andel. | SETH THOMPSON

Crain’s names Grand Action 2.0 the 2023 Newsmaker of the Year Fifteen more organizations earn honors in various industries | By Kate Carlson Grand Action 2.0’s efforts to bring a pair of major entertainment venues to downtown Grand Rapids earned the developer the Crain’s Grand Rapids Business Newsmaker of the Year award for 2023.

The organization, co-chaired by Carol Van Andel, Tom Welch and Dick DeVos, is in the fundraising stage for both the $184 million Acrisure Amphitheater along the Grand River and an 8,500-seat soccer stadium on the west side of U.S.-131 that will require an initial investment of $108 million. Grand Action 2.0 leaders hope to break ground on the amphitheater in the coming months, and have expressed hopes to break ground on the stadium by the end of 2024.

More than 300 people attended the annual event at Frederik Meijer Gardens. | SETH THOMPSON

About 325 West Michigan business leaders and professionals gathered Feb. 27 at Frederik Meijer Gardens and Sculpture Park

for the inaugural Crain’s Grand Rapids Business Newsmakers of the Year event, which also celebrated Newsmakers in 15 indus-

try categories.

During the event, Crain Communications President and CEO KC Crain interviewed Van Andel about the history of Grand Action 2.0 and the role that previous iterations of the program have played in spurring downtown development, particularly with Van Andel Arena.

Initially organized in 1991 as Grand Vision and renamed in 1993, Grand Action was co-chaired

by DeVos as well as the late John Canepa and the late David Frey, and served as the vision behind projects such as the DeVos Place Convention Center, the Meijer Majestic Theater, the Michigan See NEWSMAKER on Page 20

w Hospitality and Tourism: Mike Guswiler, West Michigan Sports Commission w Law: Teresa Hendricks, Migrant Legal Aid w Manufacturing: Charles Hyun, LG Energy Solution Michigan Inc. w Nonprofits and Philanthropy: Guillermo Cisneros, West Michigan Hispanic Chamber of Commerce w Real Estate and Development: Jon Rooks, Parkland Properties w Retail: Javier Olvera, Supermercado Mexico w Sports and Recreation: Paul Soltysiak, Fans of Valley Field w Startups and Innovation: Jennifer Owens, Lakeshore Advantage w Technology: Jamon Alexander, West Michigan Center for Arts and Technology

DDA to kick in $20.5M for Acrisure Amphitheater Funds will cover debt service payments for venue over next 20 years

By Kate Carlson

The Grand Rapids Downtown Development Authority will contribute $20.5 million over the next 20 years to cover debt service payments for the Acrisure Amphitheater project.

The DDA board approved a resolution Feb. 14 to back the 12,000-capacity venue that’s being developed by Grand Action 2.0.

The $184 million project is expected to break ground in May on a nearly 12-acre site at 201 Market Ave. SW. “There have been a lot of pro-

posals and drawings on this site over the years,” Downtown Grand Rapids Inc. President and CEO Tim Kelly said at the DDA meeting. “While we have these aspirations, this is a very challenging site to redevelop. First and foremost, it’s large — it’s almost 20 acres when we think about the full build out and vision.”

The DDA board approved an agreement with the city of Grand Rapids, which is expected to issue bonds for the project this spring.

Under the agreement, the city is issuing the debt and the DDA is providing the funds, which are es-

timated to total $20.5 million plus interest over the next 20 years.

DDA officials say the upcoming end to debt service payments on another downtown venue, as well as ongoing increases in tax increment revenue, will support the amphitheater contribution.

“Given the final payment of the Convention Center bonds in 2024 and the continued increase in tax increment, there are expected to be no impacts to the currently approved DDA priority plan by agreeing to this payment,” See DDA on Page 20

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

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2/28/24 11:06 AM

Haworth enjoys growth streak amid office uncertainty

By Mark Sanchez

Higher revenues in 2023 extended Haworth Inc.’s growth streak to four straight years following a steep industry decline in the first year of the COVID-19 pandemic.

The Holland-based Haworth on Feb. 21 reported $2.57 billion in sales for 2023, a 3% increase over 2022. The results for last year also raised Haworth to 16% sales growth since 2019, before the pandemic.

“In an industry that is certainly under a lot of pressure, we found a way to still grow,” said President and CEO Franco Bianchi. “We have grown not only this year, but we’ve grown a lot more and we have grown quite a bit since 2019.”

The privately owned Haworth publicly reports annual sales but does not disclose earnings.

The 2023 sales growth came across all business segments — including office, home and hospitality — and in geographic markets globally, Bianchi said.

Employers, particularly large companies, adapting to what Bianchi called “huge” workplace changes are driving the business. The changes accelerated out of the pandemic with more hybrid work models and smaller offices resulting from people balancing in-office work and working remotely from home. That’s led employers to consider adopting new office styles to accommodate today’s workers and adjusting the workplace accordingly.

“Every time a client gives us a chance to help (companies) think how they should be organized, we have a major opportunity to win and to grow,” Bianchi said. “Adding solutions to play in this new kind of world is being a major driver of certainly a challenging industry.”

Those market forces played out

Haworth’s showroom in Chicago. | COURTESY PHOTO

in 2023 even as U.S. economic growth slowed as interest rates rose. The 2023 sales results followed an even bigger year for Haworth in 2022, when the company grew sales by 27% as the pandemic waned.

Haworth expects to record further growth in 2024 in the low single digits. The uncertainty and “turbulent times” that prevailed in 2023 will continue this year, particularly with conflicts in the Middle East and Ukraine, and the U.S. presidential election.

Even in the uncertainty, Bianchi notes that many large corporations “have not totally digested how to reorganize in a world of technology” and the new work models. The change is providing opportunities for Haworth, whether employers downsize their office footprint or

require employees to work in the office for two or three days a week.

This year “has a lot of uncertainty, and the amount of uncertainty is not lower today than it was 12 months ago (and) we kind of figured it out. I believe we’re going to figure it out also in ’24,” Bianchi said. “The good side of ’24 is more change is going to happen, and I’d say change is good for us.

“The challenge of ’24 is going to be decision making. In this uncertain environment, how many clients will decide to actually invest in space?”

That’s the question the broader industry is coping with today as many employers bring remote workers back to the office or adopt hybrid work models.

“Certainly, return to office will, we believe, drive continued inter-

est in our business and our sector.

But beyond that … I think offices in general are not configured to support the ways people are looking to work,” Steelcase Inc. President and CEO Sara Armbruster said during a December conference call to discuss the company’s most recent quarterly results.

Armbruster believes that the “future is going to be no different from the past in the sense that there will continue to be broader … macro-level trends that I think can also provide support to our business.”

“We are optimistic that as more companies settle into a stronger in-office presence, their investment levels will increase,” Armbruster said. “So, whether that’s privacy in focus, whether that’s supporting collaboration, whether that’s helping rebuild social con-

nections and personal engagement and well-being, I think all of those things are kind of open questions that lots of organizations are thinking about and trying to make investments to support.”

In a survey that MillerKnoll Inc. conducted last fall that involved 5,000 people in nine countries, 37% were employed by companies with hybrid work policies, and just 13.6% of had adopted a remote-first approach. The rest require full in-office work.

MillerKnoll President and CEO Andi Owen told analysts in a December conference call that she sees a “lot more momentum around getting people back together.”

“We’re seeing people come to us with … ideas about what they want to do. They have plans to bring people back to the office,” Owen said.

“I think return to office is absolutely picking up.”

Chicago-based JLL noted in a recent report that at the start of February, 91% of Fortune 100 employers had hybrid or full in-office policies with an average attendance requirement of 3.1 days. Just 1.4% of survey respondents had full remote work policies.

Despite the present trends and the need for employers to update their office to meet the present era, both Steelcase Inc. and MillerKnoll Inc. expect softer sales to start 2024.

The Grand Rapids-based Steelcase (NYSE: SCS) expects sales for its current quarter to decline 1% to 5% from the same period a year ago to $765 million to $790 million.

Zeeland-based MillerKnoll (Nasdaq: MLKN) projects $890 million to $930 million in sales for its current quarter, which represents a 5.5% to 9.6% decline from the same period a year earlier.

Wolverine eyes improved profitability after major shakeup

By Andy Balaskovitz

Executives at Wolverine World Wide Inc. say the Rockford-based marketer and licenser of footwear and apparel is in the “late innings” of a months-long turnaround plan that will grow the company’s profitability by the end of this year.

In a Feb. 21 call with analysts to discuss fourth-quarter and full-year earnings, company executives underscored plans for record-high gross margins this year that come after a series of divestitures, unspecified layoffs, office consolidations and leadership changes in 2023.

“Wolverine World Wide is a much different company now than it was just six months ago,” CEO Chris Hufnagel said. “As we begin 2024, our portfolio is more focused than it has been in over a decade. … Our business is poised to be much more profitable.”

Specifically, that 2024 guidance includes an anticipated 44.5% adjusted gross margin, which would be a record-high for Wolverine, executives said. “Key contributors” to improved profitability this

year are reduced supply chain costs and ongoing inventory reductions, said CFO Mike Stornant.

While 2024 will start “from a challenging position” that will “weigh on” full-year revenue in 2024, Hufnagel said he’s optimistic about the company’s position heading into 2025.

Following the ouster of former CEO Brendan Hoffman, Wolverine under Hufnagel’s leadership launched a three-phase turnaround plan that started with “stabilization,” followed by “transformation” and “inflection to growth.”

“We’re in the late innings of the stabilization phase of the company’s turnaround,” Stornant said, noting $140 million in anticipated profit improvement in 2024.

Wolverine (NYSE: WWW) also reduced its debt load from $1.02 billion at the end of 2022 to $740 million at the end of last year. The company has taken actions over the past six months to free up $30 million to reinvest in core brands this year, Hufnagel said.

However, the company’s 2024 guidance looks to worsen before it

Wolverine World Wide announced plans last year to consolidate all of its U.S. operations in Rockford. | COURTESY PHOTO

gets better.

That’s particularly the case for the company’s Saucony and Merrell brands, which make up the large majority of Wolverine’s Active Group. Following more than 10% year-over-year revenue declines in the fourth quarter of 2023 for both Merrell and Saucony, the two brands are each expected to underperform in early 2024 as revenues decline in the “mid-thirties” in this first quarter of 2024, per the company’s guidance. Overall reve-

nue percentage for Wolverine’s Active Group is forecasted to decline in the “mid-teens” throughout 2024.

“The business is starting (2024) from a challenging position, which will weigh on full-year revenue results,” Hufnagel said.

The 2024 forecast comes after Wolverine’s total 2023 revenue dipped to $2.24 billion, a 16.5% drop from $2.68 billion a year earlier but in line with updated guidance from November 2023.

Following the series of divestitures, the company is projecting $1.7 billion to $1.75 billion in revenue for 2024, a 13.4% decline.

Wolverine World Wide’s portfolio looks much different than it did a year ago. Over the last 12 months, the company launched a series of moves that create a “clean” and “simpler” business model, Stornant said. Those include: w Selling its Sperry brand in a $130 million deal in January. w Exiting a joint venture in China involving Merrell and Saucony and selling its Asia-based Wolverine Leathers in late 2023, generating a total of $70 million. w Selling its U.S. Wolverine Leathers business in August 2023 to New Balance for about $6 million. w Selling Keds in February 2023 to Columbus, Ohio-based Designer Brands Inc. (NYSE: DBI).

Overall, Stornant and Hufnagel struck an optimistic tone as they look forward, particularly to the second half, of 2024.

“In a few short months, we’ve stabilized the company,” Hufnagel said. “2024 will be a pivotal year.”

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2/28/24 11:12 AM

‘Enchanted’ 129-year-old Kalamazoo castle lists for $5M

By Rachel Watson

The seller of an 1895 castle in Kalamazoo said its next owner will get a packaged deal including several thriving businesses and, perhaps, a pair of benevolent ghosts.

Perched on a hill overlooking Mountain Home Cemetery in Kalamazoo’s West Main Hill neighborhood, the historic 11,000-square-foot Henderson Castle at 100 Monroe St. was listed for just shy of $5 million on Feb. 15 by owner Francois Moyet through Realtor Casey Alger, of Adrian Real Estate.

The listing includes 3.2 acres and several businesses: a bed and breakfast with 12 guest rooms and a cottage with two guest suites, the H Chophouse French restaurant and Spirits Lounge, a vineyard and wine tasting room, a spa, and a wedding and events business. The sale also will include all of the furnishings.

Moyet purchased the castle, situated directly west of Kalamazoo College, in 2011 for $825,000 from Peter and Laura Livingstone-McNelis, who bought it from Frederick Royce in 2005 for just over $1 million. Royce was the first to turn it into a B&B, a tradition that has continued since.

As much as he loves it, Moyet, 57, said he would like to turn his role as “guardian of the castle” over to the next person so he can return to his native country.

“I need to go back to France to spend time with my family. My mom just turned 80 years old, I have a business in France … a renewable energy company, which needs my expertise and assistance … and I also want to run for Congress,” he said. “I want to serve my country.”

A paranormal reputation Moyet, a restaurateur and master chef who moved to Kalamazoo in 1995 to be closer to his wife’s family, said he felt Henderson Castle found him, rather than the other way around.

“It’s a magical place,” he said.

Although it’s been called one of Michigan’s most haunted sites due to the many alleged sightings of the ghosts of original owners Frank and Mary Henderson, Moyet said he doesn’t think of it as haunted.

“I like to say it’s ‘enchanted,’” he said. “There’s no bad ghosts here, only beautiful spirits.”

Moyet said he believes he has felt the presence of the Hendersons in the form of the “good karma” that’s come to him since buy-

ing the property. Royce, his friend who owned the property from 1981 to 2005, once observed to Moyet that everything he touched “turned to gold” while he owned the castle. Moyet said he’s had a similar experience.

“My life changed when I bought the castle, in terms of being blessed — that’s all I can say,” he said.

The castle’s history Frank and Mary Henderson built the ornate Queen Anne-style castle in 1895. Even then, it would have overlooked the cemetery, which was established in 1849.

Mary Henderson had inherited the steeply sloped land on which they built the castle, according to the Kalamazoo Public Library. The project took seven years and cost $72,000, which would be about $2.64 million in today’s dollars.

Architect C.A. Gombert of Milwaukee, Wis., designed the house to satisfy the expensive tastes of the era. The exterior is made of Lake Superior sandstone and brick, and the interior includes mahogany, bird’s eye maple, quartered oak, birch and sycamore wood.

The Hendersons threw a large party when it was completed, inviting all of Kalamazoo’s most prominent citizens, according to KPL. Frank Henderson only lived to enjoy the home four years before his death in 1899, while his wife lived there until 1908. Other prominent owners included Charles B. Wing, vice president of Bryant Paper Company, and Bertrand Hooper, president and treasurer of Kalamazoo Stationery Company, according to KPL. In 1957, the house was considered for the future site of the Kalamazoo Institute of Arts. Instead, the institute remained downtown, and Kalamazoo College bought the castle. Dr. Jess Walker acquired the castle in 1975 and began a restoration process that continued under Royce.

The Freemason connection Frank Henderson, the castle’s original owner, was president and co-owner of the Henderson-Ames Company, which made military uniforms and regalia for secret societies and fraternal organizations.

Henderson himself was a prominent Freemason in Southwest Michigan. Moyet said Frank Henderson’s story as a public figure and community servant ultimately inspired him to join the Freemasons.

“My uncle in England was a

Henderson Castle is an 11,000-square-foot mansion built in 1895 in Kalamazoo’s West Main Hill neighborhood. | COURTESY OF CASEY ALGER, ADRIAN REAL ESTATE

Freemason and begged me for many, many years to become a Mason, and when I bought the castle and learned that Frank was a Mason and the impact he had …

I called my uncle in London and said, ‘I’m ready now,’” Moyet said.

After about a year of apprenticeship, Moyet joined the Kalamazoo-Anchor Lodge #22 in 2014, “and I’ve been serving my community since then,” he said.

A valuable legacy While Moyet wouldn’t quite call the castle “a gold mine,” he said its book of business is “doing fantastic,” with sold-out events every weekend and a 68% rate of repeat bookings.

“In this industry, if you get 20%, you’re top-notch,” he said.

Alger, Moyet’s real estate agent, said he personally has stayed in one of the guest rooms, the Queen’s Tower.

“It’s the only room in the castle that has a private balcony,” he said. His other favorite features include the rooftop hot tub, restaurant, spa and third-floor ballroom.

Moyet said he has invested about $1.5 million in upgrades to the castle and its grounds over the years, including $72,000 to build the wine cave, which is a wine tasting room nestled 7 feet below ground, adjacent to a now-collapsed tunnel system that is rumored to have been used for the underground railroad, according to Moyet.

The onsite vineyard produces about 5% to 10% of the grapes used in the Henderson Castle wines, Moyet said. The fruit is harvested and sent to Fenn Valley Vineyards in Fennville to be mixed with other grapes and turned into the wines that are aged in the Henderson wine cave.

Between the restaurant, winery, spa and events business, the castle

supports about 22 jobs, Moyet said.

Alger said the fact that it’s a revenue-generating property with so many assets “warrants the price” of just less than $5 million.

Moyet said if someone came to him tomorrow and offered $20 million for the place, he wouldn’t take it unless the buyer promised to preserve the businesses and the castle’s overall legacy.

“It’s not about me, it’s not about the money,” he said. “It’s about keeping the castle alive (and) open, to educate and inspire people every day.”

In response to people who might be nervous about its proximity to the cemetery and its reputation for specters, Moyet quipped with a laugh: “We have across the street 7,500 people resting in peace very quietly. If they break in at night, it’s because they heard the food was good here at the castle.”

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2/28/24 11:20 AM

Developer plans downtown restaurant, bar, golf simulators

By Kate Carlson

Rockford Construction Co. is converting a vacant two-story building in downtown Grand Rapids into a restaurant and bar with golf simulators.

The 16,000-square-foot building at 45 Ottawa Ave. NW will be renovated into a full-service bar and restaurant called Gimme’s Par and Grill that’s expected to open this fall. The site, formerly occupied by Davenport University, also would feature two large golf simulator stations on the first floor. The first floor could seat about 150 people while the second floor would be built out into a lounge area alongside seven golf simulators. Each simulator bay could host up to eight people, and the capacity of the building would total 350 people.

“We’re really excited about the opportunity to be right in the heart of downtown Grand Rapids,” said Sam Stover, a partner and director of operations for Gimme’s Par and Grill. “I think it’s going to bring more people downtown to socialize, have fun and utilize the space and continue to have that ‘eater-tainment’ atmosphere, which is a lot of fun.”

“We’re really excited about the opportunity to be right in the heart of downtown Grand Rapids.”

— Sam Stover, a partner and director of operations for Gimme’s Par and Grill Gimme’s Par and Grill wi l have Trackman golf simulators with about 300 courses and other virtual play options for all ages such as soccer, tennis and zombie dodgeball. The venue will have loaner clubs on hand, and some space for people to store their golf bags if they want to keep them at the facility, Stover said.

The plan is to host leagues at the space, provide drop-in play options and let people rent out part of the restaurant for private events.

“We’ll have the opportunity to do private events, but the main focus will be more date night, family oriented,” Stover said.

The venue also will serve business travelers who are staying in downtown hotels, Stover said.

Stover is a PGA golf professional and has worked as the manager or head of golf operations at various private golf courses and resorts, including the Railside Golf Club in Byron Center.

Mike Mraz, president of real estate and development at Rockford Construction, said the company was attracted by the restaurant-golf simulator concept based on the varying demographics the venue could draw throughout the week.

Rockford Construction is building the project and also owns the building, which was constructed in 1955. Gimmie’s Par and Grill will lease the space.

Davenport University’s Peter C. Cook Center formerly occupied the

building before the university’s operations relocated to the first floor of 200 Ottawa Ave. NW in 2019.

Mraz noted the prominent location downtown as a driver of the project.

“Seeing the reactivation of downtown and some of the major projects being announced, we were very particular and wanted to reactivate this space because of its prime location downtown,” Mraz said.

The property also contains a 27-space parking lot, which could potentially be used for special events in the future, Mraz added.

Gimme’s also represents Rock-

ford Construction’s latest involvement in a golf-related project downtown. The company owns 70 Ionia Ave. SW, which it’s renovating for a Big Mini Putt Club miniature golf course and bar.

Meanwhile, the number of golf simulator and indoor sports entertainment businesses is on the rise.

In Grand Rapids, indoor golf simulator and pickleball venue Pickle x Pin is planned at 662 Leonard St. NW. As well, a 9,000-square-foot Brandon Roby Golf Performance Center recently opened in the former Gorman’s Furniture building on the 28th Street SE corridor.

Rockford Construction is building out a two-story restaurant and bar at 45 Ottawa Ave. NW. | ANDY BALASKOVITZ

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2/28/24 11:22 AM

City rezones 30 acres on west side for housing, higher density

By Kate Carlson

The Grand Rapids City Commission voted to rezone approximately 30 acres and prepare land along the west side of the Grand River for future development such as housing.

The land spans 22 parcels along Front and Scribner avenues between Leonard Street to the north and Sixth Street to the south. The parcels are located between US131 to the west and the Grand River to the east.

“I’m personally excited about this,” First Ward Commissioner Drew Robbins said during the meeting. “Hopefully it will incentivize some much-needed housing in this area, and its proximity to downtown makes it a very suitable location for some greater

A ballot question later this year will ask voters to renew the Ready by Five millage at the current rate of 0.25 mills for the six-year period of 2024 to 2031. | COURTESY OF FIRST STEPS KENT

Looking southwest from the Leonard Street bridge, where the city has rezoned about 30 acres to support future development. | RACHEL WATSON

The zoning change, which had gained support from local developers, increases building height limits from up to seven stories to a maximum of 10 stories by right, or 20 stories with a height bonus approval. As well, the zoning change also removes parking minimum requirements, which is often cited by developers as an obstacle to mixed-use or housing projects.

The zoning district will — Kristin Turkelson, Grand Rapids City Planning Director likely be reconsidered as part of the master plan updates that the city is working density.”

The area was rezoned from a through currently, Grand Rapids traditional neighborhood-transi- City Planning Director Kristin tional city center (TN-TCC) to a Turkelson previously told Crain’s traditional neighborhood-city Grand Rapids. The planning department initiated the process becenter (TN-CC) zoned district.

“The zoning district will likely be reconsidered as part of the master plan updates that the city is working through currently.”

fore the master plan updates were complete because of development trends in the area and the city’s need for more housing.

The city commission is also expected to consider five zoning ordinance amendments in the coming months that aim to help increase housing supply, diversity and affordability. The Grand Rapids Planning Commission unanimously approved the zoning amendments on Jan. 25.

If approved by the city commission, the zoning changes would ease restrictions on accessory dwelling units (ADUs), reduce or eliminate parking minimums in certain areas, reduce unit occupancy limits, adjust group-living requirements and allow for more small-scale residential infill projects.

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Kent County rejects calls to expand early childhood millage

By Rachel Watson

Kent County officials voted to maintain funding for the Ready

by Five Early Childhood Millage at the current rate, despite pleas from the community to expand the program for publicly funded child care infrastructure.

The Kent County Board of Commissioners on Feb. 22 voted 17-2, with two members absent, to put a question on the ballot later this year to renew the Ready by Five millage at the current rate of 0.25 mills for the six-year period of 2024 to 2031.

However, the deciding vote came after a lengthy meeting when Democrats and one Republican on the GOP-majority board sided with community advocates and some business leaders to expand the millage for the next six years. The board narrowly defeated a “compromise” proposal to grow the funding at a lower rate than advocates sought.

The millage, administered by First Steps Kent, lets organizations apply for funding to support early childhood programs that improve health and school readiness for children ages 5 and younger. Kent County voters approved the first six-year Ready by Five millage in 2018, and it was set to expire at the end of this year.

First Steps Kent had sought to raise the millage to 0.45 mills to expand early childhood funding to $13.9 million in the first year and up to $20 million over the next six years.

The renewal of the millage at 0.25 mills is expected to generate $7.7 million for early childhood programs in the first year, up from $5.5 million in 2019, the first year of implementation of the initial millage.

The Republican-majority board’s decision to keep the status quo came after Commissioner Tony Baker moved to raise the millage to 0.35 mills. The motion failed 10-9, as eight Democrats and one Republican supported increasing the millage.

Baker introduced the motion at the meeting, calling it a “good compromise” between a board subcommittee’s recommendation for 0.25 mills and First Steps Kent’s request for 0.45 mills. The

board spent nearly two hours discussing the proposed amendment before voting it down largely along party lines.

Board of Commissioners Chairman Stan Stek chaired the original board subcommittee in 2018 that decided to recommend the 0.25-mill Ready by Five levy to voters.

He said that when he initially supported the millage, it was with the understanding that in six years, First Steps Kent would be able to “test” and “prove” to the commission the effectiveness of the publicly funded early childhood programming, and then the commission could decide whether to increase it.

“Unfortunately, the test we anticipated before we could come back to the commission and increase it fell short, not because of anything wrong with the programming, but because of the pandemic. It robbed us of three years of that test. It wasn’t anyone’s fault,” he said. “… In my judgment, I think it requires more consistent testing. … Let’s go forth and prove it.”

Stek added that even with renewing the millage at the same rate, it “will inherently grow” by over $2 million based on inflationary increases in property taxes countywide.

He also said that he plans to appoint a task force of community stakeholders across a spectrum of opinions to “determine how we can more effectively address this issue of child care in the community.”

GOP Commissioner Emily Brieve chaired the three-person, majority-Republican subcommittee from the board of commissioners that studied the issue between September and December last year and recommended keeping the millage the same.

She said during the meeting that she believes an amendment made to the language that will be on the ballot later this year will allow First Steps Kent to put some of their funding toward child care as well as early childhood programming if they so desire.

“If they want to focus the funds more on … child care initiatives, they have that flexibility,” she said.

8 | CRAIN’S GRAND RAPIDS BUSINESS | March 4, 2024

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Grand Rapids seeks to add post office property to taxing district

By Kate Carlson

Grand Rapids is taking steps to expand its district that collects tax revenue for downtown development activities to include the site of the Acrisure Amphitheater as well as a U.S. Postal Service building along the Grand River long eyed for redevelopment.

The city’s Downtown Development Authority board voted Feb. 14 to add two new areas to its tax increment finance district, which was originally approved in 1980 and updated 16 times, most recently in 2016. The Grand Rapids City Commission is expected to hold a public hearing on April 9 to consider the additions to the downtown TIF district.

Expanding the district to include the two new sites would open the ability to collect additional revenue from the properties’ higher assessed value if and when they’re redeveloped. That revenue currently collected on properties spanning hundreds of acres downtown supports a variety of DDA activities, including buying and disposing of real estate and creating development plans.

The two proposed additions were left out of previous expansions to the district because they include brownfields, Tim Kelly, president and CEO of Downtown Grand Rapids Inc., said at the meeting. However, there’s been a change in interpretation in how the DDA’s TIF district can interact with brownfield sites.

“The DDA can opt out or share revenues with brownfield (incentives),” Kelly said. “We see now the opportunity to bring the DDA tool to these areas and participate in these developments.”

One of the expansion areas includes the USPS building and The Rowe building at 225 and 201 Michigan St. NW, respectively.

Relocating the post office from downtown Grand Rapids has long been a development goal to free up prime riverfront real estate. Such a goal was included in a list of 12 “transformational” projects that The Right Place Inc., Grand Rapids Area Chamber of Commerce, DGRI and Experience Grand Rapids released in 2022.

“Part of the intended capture there (for the DDA) is the ability for future investments specific to the river walk and river trail for us,” Bill Kirk, DGRI’s director of communications, told Crain’s Grand Rapids.

Kirk said he is unaware of any immediate plans to redevelop the USPS building site, but it has long been a goal of the city.

The other proposed addition would extend the TIF district southwest to include land along the Grand River, including 201 Market Ave., where Grand Action 2.0 plans to construct the Acrisure Amphitheater. As well, The Rapid’s Operation Center, part of the Grand Valley State University Pew Campus, 234 Market Apartments, ChoiceOne Bank and several other industrial, manufacturing and

commercial properties are located in the proposed expansion to the TIF district.

Expanding the TIF district also aligns with broader riverfront redevelopment goals to activate the river as part of the ongoing Grand River Greenway.

The Downtown Development Authority’s tax increment and development plan over the years has supported projects including the Downtown Market, the Vern Ehlers Amtrak station, various park and street improvements, and long-term planning for the riverfront.

A plan to expand Grand Rapids’ tax increment finance district could include a U.S. Postal Service building along the Grand River. | ABBY POIRIER

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INDUSTRIAL | OFFICE | RETAIL | INVESTMENT | MULTIFAMILY | PROPERTY MANAGEMENT March 4, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 9

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CRAIN’S LIST LARGEST & ACQUISITIONS MERGERSMERGERS & ACQUISITIONS IN 2023 IN 2023

CR

Ranked by value of transaction

Ran

Acquirer name REALTY 1 KIMCO CORP.

2

REVOLUTION MEDICINES INC. Redwood City, Calif.

Description

Value of transaction ($000,000)

Target

Acquirer advisers

RPT REALTY New York, Southfield

Wachtell, Lipton, Rosen & Lazard Freres & Co. LLC; Goodwin Procter LLP; Innisfree Katz LLP; Venable LLP; M&A Inc. J.P. Morgan Securities LLC; Equiniti Trust Co.; Latham & Watkins LLP

Closed Aug. 2023

Sold by: State Street Corp.; BlackRock Inc.; The Vanguard Group Inc.; Wellington Management Group LLP; Macquarie Group Limited; CenterSquare Investment Management LLC. Kimco Realty Corp. completed the acquisition of RPT Realty from a group of shareholders on Jan. 2, 2024.

EQRX INC. Cambridge, Mass.

Morrow & Co. LLC; Equiniti Trust Co. LLC; Guggenheim Securities LLC; Latham & Watkins (London) LLP; Latham & Watkins LLP

Goodwin Procter LLP; MacKenzie Partners Inc.; Goldman Sachs & Co. LLC ; Continental Stock Transfer & Trust Co.; MTS Securities LLC; MTS Securities LLC

Closed Aug. 2023

$1,586.6 Sold by: Arch Venture Partners, L.P.; Nextech Invest Ltd.; The Vanguard Group Inc.; Arboretum Ventures LLC; GV Management Co. LLC; Andreessen Horowitz LLC; Corvex Management LP; Casdin Capital LLC; Boxer Capital LLC; Mubadala Capital; Bain Capital Life Sciences Investors LLC; Jameel Investment Management Co.. Revolution Medicines Inc. completed the acquisition of EQRx Inc. from a group of shareholders on Nov. 9, 2023.

Jericho, N.Y.

Target/seller advisers

Status/date announced

$1,980.5

1

LTD. 3 HOLCIM Zug, Switzerland

DURO-LAST INC. Saginaw

Bank of America Corp.; BofA Securities Inc.

Raymond James Financial Inc.

Closed Feb. 2023

Holcim Ltd completed the acquisition of Duro-Last Inc. from Burt family on Feb. 24, 2023.

$1,293.0

POWER 4 HUBBELL SYSTEMS INC.

NORTHERN STAR HOLDINGS INC. Iron Mountain

Wachtell, Lipton, Rosen & Target adviserr: Harris Williams Katz LLP; Morgan Stanley LLC; Lincoln International LLC; McDermott Will & Emery LLP. & Co. LLC Seller adviser: Lincoln International LLC; McDermott Will & Emery LLP

Closed Oct. 2023

Sold by: Comvest Advisors LLC. Hubbell Power Systems Inc. completed the acquisition of Northern Star Holdings Inc. from Comvest Investment Partners V, L.P., Comvest Investment Partners V-A, L.P. and Comvest Investment Partners VI, L.P., managed by Comvest Advisors LLC on Dec. 12, 2023.

$1,100.0

DE-STA-CO Auburn Hills

NA

NA

Announced Sold by: Dover Corp.. Stabilus SE entered into a Oct. 2023 definitive agreement to acquire De-Sta-Co from Dover Corp. for an enterprise value of $680 million on Oct. 11, 2023. The transaction is expected to close in the first half of 2024, subject to customary closing conditions.

REGIONAL ENTERPRISES LLC Flowood, Mississippi

NA

Bass, Berry & Sims PLC; Haddox Closed Reid Eubank Betts PLLC Aug. 2023

VESTA HOUSING SOLUTIONS LLC Southfield

Morrison & Foerster LLP; The Goldman Sachs Group Inc.

Kirkland & Ellis LLP; Oppenheimer & Co. Inc.

Closed Feb. 2023

$437.2 Sold by: Kinderhook Industries LLC. McGrath RentCorp completed the acquisition of VESTA Housing Solutions LLC from Kinderhook Industries LLC on Feb. 1, 2023.

HORIZON GLOBAL CORP. Plymouth

Paul Hastings LLP; D.F. King & Co. Inc.; Computershare Inc.

Lincoln International LLC; Lincoln Closed International LLC; D.F. King & Co. Jan. 2023 Inc.; Jefferies LLC; Jones Day; Computershare Inc.; Latham & Watkins LLP

$408.4 Sold by: Royce & Associates, LP; Beryl Capital Management LLC; Beryl Capital Management LP; Beryl Capital Partners II LP. First Brands Group LLC completed the acquisition of Horizon Global Corp. from a group of shareholders on Feb. 8, 2023.

HOME POINT CAPITAL INC. Ann Arbor

Kirkland & Ellis LLP; Houlihan Simpson Thacher & Lokey Capital Inc.; Houlihan Bartlett LLP; D.F. King & Co. Inc.; Wachtell, Lipton, Lokey Capital Inc. Rosen & Katz LLP; Equiniti Trust Co.

Closed May 2023

$327.2 Sold by: Stone Point Capital LLC. Mr. Cooper Group Inc. completed the acquisition of Home Point Capital Inc. on July 31, 2023. The tender offer by Mr. Cooper for all of the outstanding shares of Home Point expired at 5:00 p.m. Eastern Time, on July 31, 2023.

BATTERY ENCLOSURES BUSINESS OF DURA AUTOMOTIVE SYSTEMS

NA

Closed May 2023

Sold by: DURA Automotive Systems LLC. Acquisition completed on Aug. 3, 2023.

Columbia, S.C.

SE 5 STABILUS Koblenz, RhinelandPalatinate, Germany

HOME 6 CHAMPION BUILDERS INC.; CHAMPION RETAIL HOUSING INC. Troy

7 MCGRATH RENTCORP Livermore, Calif.

BRANDS 8 FIRST GROUP LLC Rochester

COOPER 9 MR. GROUP INC. Coppell, Texas

10

LINAMAR CORP. Guelph, Ontario, Canada

AB (PUBL) HEALTHMARK 11 GETINGE INDUSTRIES CO. Gothenburg, Västra Götaland County, Sweden

12 SKYLINE CHAMPION CORPORATION Troy

13 EAGLETREE CAPITAL New York

Seller adivser: Houlihan Lokey Capital Inc.

Champion Home Builders Inc. and Champion Retail Housing Inc. completed the acquisition of Regional Enterprises LLC from Heath Jenkins on Oct. 13, 2023.

1

$680.0

$478.0

2

2

2

$325.0

2

2

2

2

2 Barclays Capital Inc.

NA

Closed Oct. 2023

Getinge AB (publ) completed the acquisition of Healthmark Industries Co. Inc. on Oct. 11, 2023.

$320.0

2 Legal: Foley & Lardner

MMGY GLOBAL, LLC Jones Day, New York Kansas City, MO & Detroit, MI (and others)

NA INC. ELECTRIC HYBRID 14 BORGWARNER Auburn Hills SYSTEMS BUSINESS SEGMENT

1

1

INC. Fraser REGIONAL ENTERPRISES, LLC Flowood, Mississippi

1

Bass, Berry & Sims

Closed Oct. 2023

Sold by: Regional Holdings Corporation. Skyline $313.0 Champion Corp., and its subsidiaries Champion Home Builders Inc. and Champion Retail Housing, acquired the shares of Regional Enterprises LLC and other interests from Regional Holdings Corp. and certain other principals for cash and stock.

Foley & Lardner, Detroit, MI; Bright Tower Advsisors, New York

Closed Oct. 2023

Sold by: Peninsula Capital Partners, LLC. Sale of MMGY Global, an advertising firm specializing in travel.

Handles Pure Michigan, Visit Detroit, Traverse City and other local advertising work in Michigan.

$290.0

NA

Closed June 2023

Sold by: Eldor Corp. S.p.A.. BorgWarner Inc. completed the acquisition of Electric Hybrid Systems Business Segment from Eldor Corp. S.p.A. on Dec. 1, 2023.

$273.2

2

3

SO cho pu inc Ra

W 10 | CRAIN’S GRAND RAPIDS BUSINESS | March 4, 2024

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CRAIN’S LIST MERGERS & ACQUISITIONS IN 2023 Ranked by value of transaction

Description

Value of transaction ($000,000)

Closed March 2023

Sold by: Peninsula Capital Partners (Southfield).

$220.0

Foley & Lardner LLP

Closed Dec. 2023

Sold by: Peninsula Capital Partners (Southfield).

Impact XM (Impact XM), a full-service, end-to-end experiential marketing services provider for blue-chip, Fortune 500 clients.

$200.0 e 1

NA

Closed March 2023

Sold by: N/A.

$150.0

Closed Nov. 2023

Sold by: Kelly Services Inc. The deal closed January 3, $138.0 2024.

n Acquirer name

Target

Acquirer advisers

Target/seller advisers

LLC 15 VERITEXT Livingston, NJ

THE LIT GROUP, LLC (DBA LITIGATION SERVICES) Las Vegas

Foley & Lardner, JP Morgan

Foley & Lardner, JP Morgan

RIVERSIDE CO. 16 THE Los Angeles, LA

IMPACT XM INC. Dayton, NJ

Greenberg Traurig LLP

NA 24 STRATEGICALLY ADVISORS LLC; 17 DRA LOCATED INDUSTRIAL BURTON-KATZMAN DEVELOPMENT CO. INC. New York, Bingham Farms HOLDING S.R.L 18 GIMilan, Italy

PROPERTIES ACROSS THE MIDWEST

EUROPEAN STAFFING BUSINESS OF KELLY SERVICES INC.

NA Deloitte Italy S.p.A; Deloitte Financial Advisory Services S.p.A.; Studio Professionale Associato a Baker & McKenzie

Legal: King & Spalding; CHAMPION ECN CAPITAL CORP. 18 SKYLINE Toronto, Ontario, Canada McCarthy Tetrault LLP; CORP. Financial: Jefferies LLC

Troy

Status/date announced

Legal: Blake, Cassels & Graydon LLP. Seller adviser: DLA Piper LLP (US)

Closed Sold by: ECN Capital Corp.

Sept. 2023

$138.0

CORP. 20 MASCO Livonia

SAUNA360 GROUP OY Hanko

Hannes Snellman Attorneys Ltd.

McGlinchey Stafford; Financial: CIBC. Seller adviser: ABG Sundal Collier Holding ASA

Closed July 2023

Sold by: Nordic Mezzanine Limited. Acquisition completed in the third quarter of 2023. The consideration of approximately 120 million euro, includes net of cash.

$130.6

GROUP 21 FIELMANN AG

SINGLE VISION SOLUTION INC. Mount Clemens

O'Melveny & Myers LLP

NA

Closed June 2023

Acquisition completed Aug. 31, 2023. SVS Vision will became part of the Fielmann Group from Sept. 1, 2023.

$112.4

Closed June 2023

Sold by: Avanos Medical Inc. (NYSE:AVNS).

Acquisition completed on Oct. 2, 2023.

$110.0

Hamburg, Germany LLC 22 SUNMED Grand Rapids

RESPIRATORY HEALTH Goodwin Procter LLP BUSINESS OF AVANOS MEDICAL INC.

Seller advser: Alston & Bird LLP

23 TROPICS LP

CERTAIN ASSETS OF GREENPEAK INDUSTRIES INC.

Honigman LLP

Announced Sold by: Green Peak Industries LLC. NA Seller adviser: Miller, Johnson, Snell & Cummiskey, Oct. 2023 P.L.C.

INVESTMENT 24 BETTA (HONG KONG) LTD.

BEVERLY SEA HOLDINGS CORP. LTD. Grand Cayman, Grand Cayman

NA

NA

Announced Sold by: Irving And Beverly Laker Family Foundation Jan. 2023 (West Bloomfield).

$106.3

25 N/A

INGENIA COMMUNITIES GROUP The Rocks, New South Wales

NA

NA

Closed Oct. 2023

Sold by: Sun Communities Inc. An unknown buyer completed the acquisition of 10.25% stake in Ingenia Communities Group from Sun Communities Inc. on Oct. 12, 2023.

$100.0

COMFORT 25 DAIKIN TECHNOLOGIES

WILLIAMS DISTRIBUTING CO. Grand Rapids

NA

Honigman LLP. BDO, Rehmann, Carter Morse & Goodrich

Jan. 2023

Acquisition of Williams Distributing, a multi-generational family HVAC distributor by Daikin Comfort Technologies

$100.0 e 2

CORP. 27 OPTIMIZERX Rochester

HEALTHY OFFERS INC. RBC Capital Markets LLC; Canaccord Genuity LLC; Scottsdale, Ariz.

Blank Rome LLP Weiss Brown PLLC

Closed Oct. 2023

$95.0 Sold by: FT Capital LLC; Blue Capital Holdings LLC Acquisition completed on Oct. 24, 2023. The two companies will operate independently through 2023 with full integration during the first quarter of 2024.

CORP. 28 BOWLERO Mechanicsville, VA

SUBSTANTIALLY ALL OF THE ASSETS OF LUCKY STRIKE ENTERTAINMENT LLC

NA

Seller adviser: Houlihan Lokey Inc.

Closed May 2023

Sold by: Lucky Strike Entertainment LLC (Novi).

Bowlero Corp. completed the acquisition of Substantially All of the Assets of Lucky Strike Entertainment LLC on Sept. 18, 2023.

HEALTH 29 PARADIGM INC.

DEEP LENS INC. Columbus, Ohio

NA

NA

Closed Jan. 2023

Sold by: Sierra Ventures Management LLC; Tamarind $90.0 Hill Fund LLC; Northpond Ventures LLC. Paradigm completed the acquisition of Deep Lens Inc. on Jan. 27, 2023.

Solomon Partners; Thompson Hine LLP

Honigman LLP; Warner, Norcross + Judd LLP

Closed Feb. 2023

Sold by: Wolverine World Wide Inc.

NORTH AMERICA Osaka, Japan

New York BRANDS KEDS 30 *DESIGNER Rockford INC.

$109.4

$90.5

$83.6

Columbus, OH

SOURCE: S&P Global Market Intelligence, (Marketintelligence.spglobal.com) and Crain's research | In some cases, more than one estimated value of a transaction exists. In those cases, Crain's has chosen the value it believes to be most accurate. S&P figures may differ from other published figures, which sometimes exclude assumed liabilities or other factors. For deals involving companies going public via a special purpose acquisition company reverse merger, the surviving company is listed as the acquirer and the combined value of the companies is used for the deal value. The list does not include all 2023 transactions, only those valued at $10 million or more. It is not a complete listing but the most comprehensive available. * No. 30 was not on the S&P list, but was covered by Crain's Grand Rapids Business e. Crain's estimate. 1. Greater than $200 million. 2. Over $100 million.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsGrandRapids.com/data-center MARCH 4, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 11

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CRAIN’S LIST LARGEST MICHIGAN LAW FIRMS Ranked by number of attorneys in Michigan as of January 2024 Company Address Phone; website LLP 1 HONIGMAN Detroit 48226-3506

Top Michigan executive

Michigan Worldwide Attorneys Attorneys January January 2024/2023 2024/2023 Michigan office locations

David Foltyn chairman and CEO

293 301

347 352

Ann Arbor, Bloomfield Hills, Detroit, NA Grand Rapids, Kalamazoo, Lansing

Mark Wassink managing partner

233 NA

233 NA

Grand Rapids, Detroit, Midland, Macomb County, Kalamazoo, Muskegon, Holland, Lansing, Bloomfield Hills

AirBoss Flexible Products Co., Amway, Consumers Energy, Dow Chemical, Fifth Third Bank, Holcim, Johnson Electric North America, Robert Bosch, etc.

Michael Hammer CEO

201 209

515 485

Ann Arbor, Troy, Detroit, Grand Rapids, Lansing, Saginaw

NA

Scott Hill Jon Bylsma partners

189 NA

197 NA

Ann Arbor, Birmingham, Grand Rapids, Kalamazoo, Novi

NA

Carrie Leahy chair

148 153

148 153

Ann Arbor, Detroit, Grand Rapids, Troy

Comerica Bank; Lear Corp., Ford Family members, The Huntington National Bank, Blue Cross Blue Shield of Michigan, etc

Megan Norris CEO

138 152

205 206

Detroit, Ann Arbor, Grand Rapids, Kalamazoo, Lansing, Troy

FCA US, Comerica, Consumers Energy, University of Michigan, City of Detroit, Barton Malow, etc.

John Hensien CEO

126 NA

672 NA

Detroit, Birmingham, Grand Rapids, Lansing

NA

Mark Cooper partner-in-charge, Detroit

124 112

841 801

Southfield, Detroit

Sun Communities, Strength Capital Partners, Feldman Automotive, Redico, Benzinga, Dembs Development, etc.

David Buday managing member

124 NA

129 NA

Detroit, Grand Rapids, Kalamazoo

Pine Rest Christian Mental Health, University of Michigan Health-West, Mary Free Bed Rehabilitation Hospital, etc.

Paul Mersino president and CEO

116 NA

138 NA

Detroit, Troy, Ann Arbor, Lansing, Grand Rapids

NA

Jeff Gerish preisdent and CEO

115 121

127 131

Bloomfield Hills, Detroit, Flint, Lansing, Grand Rapids, Petoskey

NA

Leonard C. Wolfe chair and CEO

110 NA

376 NA

Ann Arbor, Bloomfield Hills, Detroit, NA Lansing

Michael Novara managing member and CEO

106 100

106 100

Troy

NA

Scott H. Hogan Anne Seurynck shareholders

100 NA

100 NA

Lansing, Southfield, Grand Rapids, Holland, Detroit

NA

Richard Suhrheinrich, Gabe Sybesma, Patrick Fishman executive committee

89 95

99 103

Detroit, Lansing, Mt. Clemens

Ascension, Amerisure, Citizens Insurance, Corewell Health, Farm Bureau, Farmers Insurance, etc.

Mark J. Zausmer managing shareholder

86 87

86 87

Farmington Hills & Grand Rapids

NA

William Heritage president

69 66

69 66

Troy

NA

Michael Jolet, Robert Steffes,Elaine 65 65 Sawyer co-managing partner

65 65

Oak Park and Grand Rapids

State Farm Insurance, Allstate Insurance, Farm Bureau Insurance, Citizens/Hanover Insurance, etc.

Representative clients

313-465-7000; honigman.com NORCROSS + JUDD LLP 2 WARNER Grand Rapids 49503 (616) 752-2000; wnj.com WRIGHT PLLC 3 DICKINSON Detroit 48226 313-223-3500; dickinsonwright.com LLP 4 VARNUM Grand Rapids 49504 (616) 336-6000; varnumlaw.com PLC 5 BODMAN Detroit 48226 313-393-7564; bodmanlaw.com CANFIELD, PADDOCK & STONE PLC 6 MILLER, Grand Rapids 49503 (616) 454-8656; millercanfield.com HILL PLC 7 CLARK Detroit 48226 313-965-8300; clarkhill.com STETTINIUS & HOLLISTER LLP 8 TAFT Southfield 48034

1

248-351-3000; taftlaw.com JOHNSON 8 MILLER Grand Rapids 49503 616-831-1700; millerjohnson.com

10 BUTZEL Grand Rapids 49503 (616) 988-5600; butzel.com COONEY 11 PLUNKETT Grand Rapids 49504 (616) 752-4600; plunkettcooney.com

12 DYKEMA 300 Ottawa Ave. NW, Suite 700, Grand Rapids 49503 616-776-7500; dykema.com TESIJA CATENACCI MCDONALD & BAAS 13 NOVARA PLLC Troy 48084 248-354-0380; novaralaw.com SWIFT COLLINS & SMITH PC 14 FOSTER 1700 East Beltline Ave. NE, Suite 200, Grand Rapids 49525 (616) 726-2200; fosterswift.com ATTORNEYS & COUNSELORS PC 15 KITCH Detroit 48226-5485 313-965-7900; kitch.com PC 16 ZAUSMER Farmington Hills 48334 248-851-4111; zausmer.com MULLINS & HORTON PC 17 GIARMARCO, Troy 48084-5280 248-457-7000; gmhlaw.com & VAN HELLEMONT PC 18 HEWSON Oak Park 48237 248-968-5200; vanhewpc.com

1. Formerly Jaffe Raitt Heuer & Weiss PC. Entered into an agreement to merge with the firm of Taft Stettinius & Hollister LLP in a deal that was announced in September 2022. The deal was finalized Dec. 31, 2022.

12 | CRAIN’S GRAND RAPIDS BUSINESS | March 4, 2024

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We’re Making Our Mark on Grand Rapids

We’re a modern and innovative firm with a storied past and deep roots in Michigan. Now, we’re delighted to be expanding our locations across the state to better serve our long-time West Michigan clients in sectors such as private equity, health care, manufacturing, environmental, cybersecurity, construction, and many others. If you don’t know us yet, we hope to have the pleasure of meeting you soon.

We’re Butzel—Detroit-Base, Grand Rapids Grace.

Trust. Always.

Paul M. Mersino, President and CEO 313-225-7000 | butzel.com

Ann Arbor • Detroit • Grand Rapids • Lansing • Troy • New York • Washington, D.C. • Alliance Offices Worldwide

CRAIN’S LIST LARGEST MICHIGAN LAW FIRMS Ranked by number of attorneys in Michigan as of January 2024 Company Address Phone; website & HOWARD ATTORNEYS PLLC 19 HOWARD Royal Oak 48067

Top Michigan executive

Michigan Worldwide Attorneys Attorneys January January 2024/2023 2024/2023 Michigan office locations

Jon Kreucher president and CEO

64 51

137 124

Royal Oak

NA

Executive committee

61 61

61 61

Detroit, Troy

NA

Sangeeta G. Shah, CEO; Frank Angileri, president

58 59

60 63

Royal Oak

NA

Anthony Randazzo Bruce Truex senior partners

55 55

55 NA

Troy, Grand Rapids

NA

Timothy J. Jordan 54 e executive committee chairman 54

NA 58

Grand Blanc, Port Huron, Grand Rapids, Ann Arbor, Traverse City, Detroit, Troy

NA

52 50

52 50

Southfield, Detroit (East Jefferson Rd), Detroit (Schaefer Hwy), Sterling Heights, Lake Orion, Wayne, Ypsilanti, Orion Twp.

NA

51 57

51 57

Southfield

NA

Matthew Wikander CEO

46 NA

46 NA

Grand Rapids, Ann Arbor, Holland, Muskegon

NA

Steven D. Sallen president and CEO

44 44

44 44

Southfield

American International Group, Hanover Insurance Group, Fidelity National Title Group, AnnieMac Home Mortgage, etc.

Marcus W. Sprow office managing partner

41 40

1072 1048

Detroit

Amcor Limited, Barnes Group, Harman International Industries, Magnesium Products of America, Nexteer Automotive, etc.

Michael D. Wiggins, principal and managing member

41 43

79 91

Troy

NA

Gregory Wysocki president

38 36

38 36

Detroit, Bloomfield Hills, Rochester Hills, Grand Rapids, Niles, South Haven, St. Joseph

Aluminum Blanking Company, Inc.; Cadillac Asphalt; Detroit Economic Growth Corp.; Guy Hurley, etc.

Donald Brownell president

36 e 38

NA 38

Troy

NA

Michael Donnelly shareholder

33 NA

33 NA

Lansing, Detroit, Grand Rapids

NA

Edward Dawda, Wayne Segal, Marc Salach, Randal Cole management committees

33 43

33 39

Bloomfield Hills

NA

32 32

42 45

Livonia, Clinton Township, Grand Rapids, Traverse City

Michigan Municipal Risk Management Authority; Consumers Energy, etc.

Joseph Bourgon CEO

32 32

32 32

Southfield; Detroit; Kalamazoo

NA

Miriam Rosen, Detroit office managing member; James Giszczak and James Stief, co-president

30 30

185 164

Bloomfield Hills

NA

Representative clients

248-645-1483; howardandhoward.com RUSSELL 20 KERR Detroit 48226 313-961-0200; kerr-russell.com KUSHMAN PC 21 BROOKS Royal Oak 48067 248-358-4400; brookskushman.com WARDLE, LYNCH, HAMPTON, 22 SECREST, TRUEX & MORLEY PC Grand Rapids 49546 616-285-0143; secrestwardle.com LUCOW MILLER PC 23 GARAN Detroit 48207 313-446-1530; garanlucow.com MORSE LAW FIRM 24 MIKE Southfield 48075

Michael Morse attorney, CEO, owner

248-350-9050; 855mikewins.com Kellie L. Howard, CEO and EINHORN FARRELL PC 25 COLLINS 4000 Town Center, Ninth Floor, Southfield 48075 co-managing shareholder 248-355-4141; ceflawyers.com

HAUGHEY RICE & ROEGGE 26 SMITH Grand Rapids 49503

Donald D. Campbell president and co-managing shareholder

616-774-8000; shrr.com HAUSER, ROTH & HELLER, PC 27 MADDIN, Southfield 48034-1839 248-354-4030; maddinhauser.com & LARDNER LLP 28 FOLEY Detroit 48226-3489 313-234-7100; foley.com IP 28 HARNESS Troy 48098 248-641-1600; harnessip.com SANGSTER WYSOCKI PC 30 KOTZ Detroit 48243-1618 313-259-8300; kotzsangster.com GARZIA PC 31 VANDEVEER Troy 48098 248-312-2800; vgpclaw.com TREBILCOCK 32 FRASER Grand Rapids 49503 616-301-0800; fraserlawfirm.com MANN, MULCAHY & SADLER PLC 32 DAWDA, Bloomfield Hills 48304 248-642-3700; dawdamann.com

MCCLOREY, DAVIS & ACHO PLC Christopher Schultz 34 CUMMINGS, managing partner Livonia 48152 (734) 261-2400; cmda-law.com SCHWARTZ PC 34 SOMMERS Southfield 48076 248-355-0300; sommerspc.com HOPKINS PLC 36 MCDONALD Bloomfield Hills 48304 248-646-5070; mcdonaldhopkins.com

Researched by Sonya D. Hill: shill@crain.com | Researched by Sonya D. Hill: shill@crain.com | This list is an approximate compilation of the largest law firms in Michigan. Total number of attorneys does not include "of counsel." It is not a complete listing but the most comprehensive available. Information was provided by the law firms or gathered from their websites. Firms with headquarters elsewhere are listed with the address and top executive of their main Michigan office. NA = not available. e. Crain's estimate.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsGrandRapids.com/data 14 | CRAIN’S GRAND RAPIDS BUSINESS | MARCH 4, 2024

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2/28/24 5:11 PM

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Inside a condo that Sable Homes built as part of the 100-unit Harvest Meadows development about 20 miles south of Grand Rapids. | COURTESY OF SABLE HOMES

Housing developers decry bureaucracy, ‘backyard’ resistance

By Kate Carlson

West Michigan housing experts and developers are calling on the business community for support during what they call an increasingly difficult environment for building attainable housing.

The Grand Rapids Area Chamber of Commerce hosted a housing-focused forum on Feb. 16 at its downtown offices. Housing Next Executive Director Brooke Oosterman led panel discussions with local developers and government officials in front of a crowd of about 100 people.

Expanding project timelines is one of the biggest obstacles right now to get housing projects across the finish line, panelists said during the event. They attributed the extended timelines to multiple factors, including the need for more incentives and financing sources to make projects pencil out amid rising interest rates and cost increases across the board.

On top of that, community pushback and the growing number of approvals needed for developments and inconsistencies in the process remain ongoing barriers, panelists said.

John Bitely, president of Rockford-based Sable Homes, said that when his development company formed in 1996, construction could start within the same year that a property was purchased. If he were to purchase property for a project today, his projections are at least three years out, he said.

“I cannot get it approved and ready through all the agencies and regulations (in the same amount of time),” Bitely said.

Bitely cited recently proposed residential building codes from the state’s Department of Licensing and Regulatory Affairs (LARA) as another major obstacle if the regulations become law. LARA’s proposed changes call for updated insulation and framing aimed at achieving better energy efficiency, and mandating sprinkler systems for fire safety in all new residential construction.

The Homebuilders Association of Michigan estimates the proposed code changes would add about $20,000 to the overall cost of building a home, Crain’s Detroit Business reported.

Bitely and Dan Burrill, a local developer who also serves as a Kent County commissioner representing the city of Wyoming, also noted challenges with an inconsistency in inspectors among communities.

“There are some communities I just don’t want to be in because it’s an absolute bear to get through the process,” Burrill said.

More people who are buying homes have to start recognizing the complexities that go into developing a project for the problem to be solved, Bitely said.

“Free market development is becoming dead because we can’t get past all the regulation and all the resistance in our own backyard,” Bitely said, a sentiment he expressed earlier this year.

Brian Hamrick, the owner of Hamrick Investment Group and a partner at Victory Development Group, told panelists that the city of Grand Rapids’ inspection process held up one of Victory’s projects by “about eight months.”

“How do we bring the inspection process into alignment with our urgent need for housing?”

Hamrick asked.

The city of Grand Rapids’ planning and inspection staff was recently allocated more staff members to help review permits. The city also has three more positions in the building department to help with the intake process, said Grand Rapids Planning Director Kristin Turkelson.

“It’s a constant workload that is just not possible to accommodate, but we’ve brought on more staffing literally this week,” Turkelson said.

“I think that’s really going to help.”

The additional burden that comes with the cumbersome permitting process makes zoning reform, community support for projects and any other way local governments can expedite the process even more important, said Kurtis Fritz, director of construction at Wolverine Building Group.

“Anything we can do to increase the amount of units (allowed) per acre and (increasing) building height for multifamily, that reduces the cost of price-persquare-foot and a per-unit basis,” Fritz said. “All of that helps and the more supply we can get the lower that makes it.”

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2/28/24 11:43 AM

Enrollment at Michigan colleges ticks up after years of declines

By Sherri Welch

Enrollment at Michigan’s colleges and universities increased slightly last fall after more than 10 years of declines for four-year universities and ups and downs at community colleges.

The gains come after COVID-19 pandemic-spurred losses, as well as a shrinking high school pipeline and economic factors. The upticks coincided with the rollout of the Michigan Achievement Scholarship last fall, but leaders also credit the increases to the retreat of the pandemic and other factors.

Grant funding is growing at the state level with the achievement scholarships and federal level with

increased Pell grants, providing more financial incentive for students to enroll, said Colby Spencer Cesaro, vice president at Michigan Independent Colleges & Universities, an association representing two dozen private colleges and universities.

Institutions in Michigan are also expanding their outreach to student populations that are typically underserved and getting creative with direct-admissions programs, increased transfer agreements and expansion of dual-enrollment programs for high school students, she said.

At the same time, “students’ lives are starting to normalize a bit post-pandemic,” Spencer Cesaro

said. “In-person college visits, athletics and the activities/events that spur interest in college are on the rise, driving more students to enroll.”

Fall is typically the largest enrollment semester for traditional students coming right out of high school, the demographic the Michigan Achievement Scholarship targets, Spencer Cesaro said.

MAS grants provide up to $5,500 annually for up to five years for students enrolled at public universities, the equivalent of a third or more of tuition costs at those schools.

Students attending private colleges in Michigan can get up to $4,000 per year for up to five years, while those enrolled at community

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Grand Valley State University’s Pew campus in downtown Grand Rapids. GVSU was among seven of the state’s 15 public universities that accounted for the increases in total enrollment in 2023. | CRAIN’S GRAND RAPIDS BUSINESS FILE PHOTO

colleges can get up to $2,750 annually for up to three years. Those in career training programs can earn up to $2,000 for up to two years. Students whose families are expected to contribute more than $25,000 weren’t eligible for the scholarship.

Michigan launched another grant program, Michigan Reconnect, in early 2021 to provide a tuition-free path to an associate degree or career training for students 25 and older. The state’s current budget includes $70 million for the expansion of the program this year.

At public four-year universities in Michigan, total fall 2023 enrollment, which includes graduate and parttime students, increased 0.53% year over year to 257,760, reversing 11 years of declining enrollment, said Dan Hurley, CEO, Michigan Association of State Universities.

Within that total, first-time freshman enrollment increased 3.9%, reaching 41,222, the association said. And total undergraduate headcount for fall 2023 rose 0.9% to 197,675.

Seven of the state’s 15 public universities accounted for the increases in total enrollment: Grand Valley State University, Lake Superior State University, Michigan State University, Michigan Technological University, Northern Michigan University, University of Michigan (Ann Arbor) and University of Michigan-Flint.

The increase in freshmen enrollment for the public schools was the largest in 11 years, Hurley said. “I definitely think the (Michigan Achievement Scholarship) had a positive impact and will have an even greater impact moving forward,” he said.

In addition, the universities are continually refining their strategic enrollment outreach. “Credit them for getting the word out about the new programs they have, the financial aid … (and) the return on the investment for a college education,” Hurley said.

Similarly, total fall enrollment of full-time, degree-seeking undergraduate students at 24 of Michigan’s private, four-year colleges and universities represented by MICU rose 0.8% year over year to 31,995, Spencer Cesaro said. Thirteen schools saw increases, including Aquinas College in Grand Rapids, Hope College in Holland, Concordia University in Ann Arbor and Walsh College in Troy.

MICU does not have current breakouts for graduate and parttime enrollment. The two dozen private colleges and universities

represented by MICU reported that enrollment of first-time, degree-seeking freshman students rose 13.5% last fall to 8,993.

Michigan’s community colleges also saw increases. According to data from the National Student Clearinghouse Research Center, the number of students at two-year public institutions in Michigan rose 3.7% last fall to 119,838. The center does not break out freshman enrollment.

“Colleges have leveraged Michigan’s historic investments in financial aid programs like Michigan Reconnect and the Michigan Achievement Scholarship, while at the same time bolstered student success efforts, which resulted in increased enrollment,” said Erica Orians, vice president of the Michigan Community College Association. “While demographic challenges plague Michigan, community colleges will continue to put in the work to reach pre-pandemic enrollment levels, ensuring more Michiganders are on track to complete a certificate or degree.”

Total undergraduate enrollment in Michigan — public, private and community colleges — last fall rose 0.7% to 382,710, according to the National Student Clearinghouse Research Center.

The increase at MICU’s private college and university members was driven by an uptick in firsttime, full-time freshman from Michigan, Spencer Cesaro said.

Seven schools reported record freshman enrollment: Adrian College, Calvin University, Concordia University Ann Arbor, Davenport University, Northwood University, University of Detroit Mercy and University of Olivet.

The increases were higher than expected, MICU President Robert LeFevre said. “I don’t think we can credit MAS for all of the bounce, although it helped. But we are moving toward pre-pandemic levels of enrollment in our sector,” he said.

The percentage of high school graduates going on to post-secondary at any level dropped from roughly 62% to 50% during the pandemic, LeFevre said. “Now we’re starting to hedge back up again,” turning around pipeline issues.

If a student qualified for a Pell grant and the Michigan Achievement Scholarship, the schools packaged federal, state and institutional financial aid to cover the remaining costs, helping to drive enrollment, LeFevre said.

Sherri Welch is a reporter for Crain’s Detroit Business.

16 | CRAIN’S GRAND RAPIDS BUSINESS | March 4, 2024

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2/28/24 11:45 AM

Gotion plans 200 office workers for downtown Big Rapids

By Kate Carlson

Gotion Inc. is converting a former downtown Big Rapids department store into office space for 200 employees as the company develops a $2.4 billion electric vehicle battery plant in nearby Green Township.

The company signed a multiyear lease at the former 20,000-square-foot JCPenney store, company officials announced Feb. 20. The space is located at 125 S. Michigan Ave., less than a mile north of Ferris State University’s campus, and will “serve all our needs until we complete the manufacturing facility construction,” Chuck Thelen, vice president of Gotion’s North American operations, said in a statement.

The building was constructed in 1975 and is owned by Warwick Realty LLC, according to property records. JCPenney shuttered the store at the end of 2020 after the company filed for bankruptcy in June 2020, according to reporting from the Big Rapids Pioneer.

The lease announcement comes after the company began clearing trees for the massive battery manufacturing plant that’s expected to be completed in 2031. As well, the company is preparing to submit “comprehensive” environmental permit applications for the battery project in the coming weeks.

of their employees.”

Gotion has received 416 resumes from “community residents” so far in its hiring process, according to company officials. The company is prioritizing candidates who live within a 25-mile radius of the planned battery plant, which was part of Gotion’s development agreement with Green Township.

“We’ve found the talent that we always knew was here who simply lacked opportunity,” Thelen said.

“It’s become readily apparent that with each hiring phase, we can successfully employ motivated residents throughout our region.”

Gotion plans to house 200 office workers in this former JCPenney store by 2025. | GOOGLE STREET VIEW

Beyond

“We’ve found the talent that we always knew was here who simply lacked opportunity.”

— Chuck Thelen, vice president of Gotion’s North American operations “Along with the start of the tree cutting process last week, establishing a physical office in Mecosta County is a huge milestone to further cement our commitment to the community,” Thelen said. “Positive momentum continues to build and the Gotion effect is now promoting business growth in downtown Big Rapids.”

The subsidiary of China-based Gotion High-Tech Co. took occupancy of the former JCPenney building on March 1, and expects the renovation at the 20,000-squarefoot former department store to take approximately two months.

The company aims to have 55 employees working in the office by the end of this year, and 200 employees there by the end of 2025.

Carlleen Rose, president and founder of the Band of Locals business organization, welcomed the news for downtown Big Rapids.

“Gotion’s decision to establish an office in downtown Big Rapids is wonderful news for our local, family-owned shops and restaurants throughout the entire area,” Rose said in a statement issued by Gotion. “The increased foot traffic alone will help invigorate these important businesses and bring new life to our downtown. We enthusiastically welcome Gotion Inc. and look forward to serving the needs

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2/28/24 11:46 AM

COMMENTARY

Bounceback of downtowns vital to health of cities

MICKEY CIOKAJLO

D

riving into Detroit in the morning glow, the tower taking shape at the former Hudson’s site downtown is reshaping the skyline alongside the Renaissance Center and other iconic structures.

Heading into Grand Rapids from the south, the tower under construction at Studio Park is changing the view of downtown in its own way.

Both are transformational projects that signal downtowns on the move.

On opposite sides of the state, Michigan’s two largest cities, most would agree, are making important strides forward economically.

Challenges remain, of course, but the momentum is headed in the right direction.

Whether they’re big Mickey projects like the HudCiokajlo is executive editor son’s site or the Book Tower redevelopment of Crain’s Detroit Business or major events like the NFL Draft in April, a lot and Crain’s of energy is going into Grand Rapids downtown Detroit.

Business.

In Grand Rapids, the Studio Park project has put its stamp on the south end of downtown, while ground is expected to break this year on a 12,000seat riverfront amphitheater and plans are in the works for a soccer stadium.

Downtowns are much more than a few

major projects or events, but these big efforts can help kickstart activity that all but ground to a halt during the pandemic.

In a recent Crain’s Forum, which is our monthly deep dive into important public policy issues, senior reporter Kirk Pinho took a close look at Michigan’s downtowns to see how they’re doing in the wake of the pandemic.

As you can imagine with a state as diverse as Michigan, the results vary from place to place. But Pinho and experts who

shared their experiences and offered ideas and examples of success that all could learn from.

One key takeaway was that while big projects and major events are certainly helpful, smaller, ongoing activities can be even more important to the lifeblood of a downtown. Pinho’s reporting cited things like yoga in the park, pottery demonstrations and free trolley rides as less flashy efforts that nevertheless can be vital to a downtown’s health by circulating people

throughout on a regular basis.

Social districts and downtown gift cards are among other activities that can also make a difference at the street level.

Downtowns are uniquely positioned to offer certain experiences.

For example, in the summer I enjoy taking a strolling lunch break to Rosa Parks Circle in Grand Rapids where food trucks line up and musicians perform as part of the Relax at Rosa weekly series.

Work from home has posed challenges to downtowns across the country as fewer workers come into the office.

Just as working in the office, even on a hybrid schedule, has intrinsic value as co-workers have opportunity to interact face to face, I feel the same way about walking around downtown. Whether it’s stepping away from the desk and taking a brief stroll or going to a downtown restaurant on a Friday night, the opportunity to see, hear and feel something new is heightened when you’re among a mix of people in an interesting place that is alive with energy, history and culture.

Yes, we’ve all heard the criticism that we can’t focus on downtowns and ignore neighborhoods. That’s a given. But the health of a city, indeed a region, requires a vibrant, attractive and safe downtown at its core.

There’s a lot of work to be done, yet from Detroit to Grand Rapids it seems the pieces are in place to keep the momentum going to reinvent our downtowns and, in some cases, their skylines.

COMMENTARY

Prevailing wage law will harm taxpayers, job providers

B

It’s important to note that eginning this month, all along with our ongoing commitcontractors and subconment to provide quality heating tractors in Michigan are reand cooling service to the comquired to pay their employees armercial and industrial markets in tificially established wages set by Michigan, we are a 100% employthe government on publicly fundee-owned company. That means ed state construction projects.

Pleune has a fiduciary responsiRestoring our state’s prevailing bility to our employees. The simwage law will raise costs for Michigan taxpayers, increase con- Ken Misiewicz ple truth is that we already pay premium wages to our people bestruction costs on important is CEO for cause we value and greatly appreprojects like road improvements, Pleune Service ciate the work they do, and in a and hinder the growth of our Company, economy. But for merit shop con- which is located competitive market, it’s critical to keep good people. tractors like us, the new prevail- in Grand So why is the new prevailing ing wage law also represents a Rapids and wage law too risky? With any largeclear and present danger to the Lansing. scale construction project, there is health of our businesses. For our company, it isn’t just a cost issue, it’s about a general contractor and a number of subthe inherent risk to the livelihoods of our contractors performing various duties.

However, with a prevailing wage project, the valued employees.

That’s why Pleune Service Company has contracting agent must ensure every emmade the difficult decision to no longer ployee on the project is compensated for the bid for publicly funded state projects after prevailing wage respective to their specific the law went into effect Feb. 13. Although a job title and the task they are performing at significant percentage of our construction any given time. That includes every employwork has historically been on state-fund- ee working for the many independently ed projects, we are now looking for proj- owned subcontracting firms on the project.

And there’s not just one prevailing wage; ects elsewhere.

there are a number of different wages based on the level of experience and classification of each employee, which creates unnecessary complexity and adds administrative costs. The reality is that the contracting agent can be held responsible for any subcontractor underpayments and incur thousands of dollars in fines, even for innocent mistakes.

Along with being jointly and severally responsible for potentially thousands of dollars in fines, the contractor’s right to proceed with the project may also be abruptly terminated under the law with the risk of having to pay for another contractor to finish the work.

The state also has the power to enter any prevailing wage project site without provocation during normal hours of operation to inspect payroll records, interview employees, and conduct wage surveys of employees. In addition, the state has the right to interview employees, supervisors, and others, in private without third parties, to discuss wages, benefits, classification, or other information. This type of government overreach has no place in our free-market economy and will only discourage economic growth.

We worked successfully under the state’s previous prevailing wage law before the Legislature voted to repeal the law in 2018.

But every contractor in Michigan needs to realize the new prevailing wage law is vastly different from the previous law.

Every contractor in Michigan needs to realize the new prevailing wage law is vastly different from the previous law.

And here is the cherry on top for Michigan union leaders — as written, the new law allows “third parties” who are not even on the job site to file complaints for violations of the new law for three years. So if a union boss hears that a worker was improperly paid, the boss can file a complaint against the contractor or subcontractor.

Lastly, because costs will increase on publicly funded projects, entities like public schools may have to reduce the scope of building construction projects to help offset the cost hike. Simply put, taxpayers will pay more for less.

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.

18 | CRAIN’S GRAND RAPIDS BUSINESS | March 4, 2024

P018_CGR_20240304.indd 18

2/28/24 11:50 AM

Commercial lenders expect steady demand for credit

By Mark Sanchez

Sytsma

Hollander

borrowing. And at the same time, we also have to be cognizant of why those rates are going lower,” he said. “From a West Michigan standpoint, thankfully, we are a growing community and so we have the benefit of growth. Planning for how we manage that growth will adjust as the interest rates change.”

KeyBank has seen a spectrum of plans from clients, Sytsma said.

Some clients are at a point in their growth that they need to proceed with an investment, while others

ward off inflation, which has moderated after running at 40-year highs. The increases elevated the federal funds rate range from 0.25% to 0.5% two years ago to today’s 5.25% to 5.5%.

Huntington Bank Chief Economist Olu Omodunbi wrote in a February U.S. economic outlook that he expects three cuts this year in the federal funds rate, “with the first cut coming around mid-2024.”

Likewise, University of Michigan economists wrote in a Feb. 16 quarterly outlook that they expect the Fed “to start cutting rates slowly by mid-2024” and make a quarter-point reduction every other FOMC meeting.

PNC Bank economists continue to forecast rate reductions to begin in May or June. A cooling labor market that “is becoming better balanced between demand for

and supply of workers, which will help moderate upward wage pressures,” represents a “theme that will please the Federal Reserve and pave the way or rate cuts,” PNC economists wrote in a recent economic briefing.

The question now is how far the FOMC may go in 2023.

Even though interest rates “are expected to drop, they’re not expected to drop that much,” said FNB of Michigan’s Hollander. Federal funds futures suggest only a 75-basis-point cut in rates over the next year, he said.

“There’s not a good possibility at all that rates are going to be materially less in a year,” he said.

Even with the rate cuts that are expected this year, Hollander doubts that borrowers will again see the kind of low-cost credit that prevailed for years prior to 2022.

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Legacy Trust Legacy Trust of Grand Rapids has appointed Michelle Van Dyke to its Board of Directors. Van Dyke is the President/CEO of Heart of West Michigan United Way. Prior to joining United Way, she served as President of Fifth Third Mortgage Company, one of several senior-level positions she held during a 30-year banking career. Van Dyke also currently serves on the Kent County 2050 Steering Committee, a regional visioning process. Her appointment to the Legacy Trust Board was finalized in January.

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C O N TAC T

As worries about a recession waned over the last few months, the key question turned to when the Federal Reserve may begin lowering interest rates after a series of increases to ward off high inflation.

The general view has been that the Federal Open Market Committee will start to reduce interest rates around midyear, after holding the benchmark federal funds steady the last few meetings. That will make borrowing for business expansions, capital purchases or acquisitions a little less costly to finance than today, although bankers don’t expect to see a reduction triggering a higher demand for commercial credit.

“Short-term lines of credit, the demand isn’t going to go up just because the rates come down,” said Mike Hollander, market president for Grand Rapids for Kalamazoo-based First National Bank of Michigan.

As Crain’s Grand Rapids Business reported in early February, banks in West Michigan recorded steady business loan growth through the end of 2023, even with higher interest rates.

FNB of Michigan had its best year ever in 2023 for commercial lending, although demand has started to taper off a bit in early 2024, even with expectations for lower rates later this year, Hollander said.

“Despite the fact that rates have been elevated, borrowers have remained optimistic,” he said.

“They’ve continued to see good investment opportunities, but we are starting to see some signs of moderating growth. Our expectation is that we’ll grow this year, but we will not grow at the same rate that we grew last year, primarily due to the impact of the higher interest rates.

“I think that you are finally starting to see the impact from a commercial loan demand perspective because of the higher rates in the market today.”

An exception to that tendency has been businesses with solid demand from clients that opted to proceed now with investments in plant, property, or equipment “if they have some level of certainty around the demand for that product,” Hollander said.

The balance for businesses that are planning to invest and need credit in the months ahead is deciding when to proceed with a loan request in a slow-growth economy and in a presidential election year that adds an additional layer of uncertainty to the equation, said Mike Sytsma, president for KeyBank’s West Michigan market.

It remains “too early to tell” when the Fed might actually start to lower rates, Sytsma said.

Companies have started taking variables into account in their planning, including the prospect of lower interest rates, Sytsma said.

“When it does, I think people have had to continue to evaluate their forecast for the next 12 to 24 months because it is a very fluid market. Lower interest rates will certainly help from their cost of

have a longer window for growth and can wait before making decisions, he said.

“They may be holding off to see where the interest rates go, but we are seeing expansion today,” said Sytsma, who does not expect lower rates to drive demand for credit higher.

“I’m not sure how much a quarter point will affect a company that has realized growth opportunities today. They may need to make the investment today,” he said. “People will prefer lower interest rates for their credit, but their decisions to make the investment will be based on many variables, including the interest rate.”

Economic outlooks continue to project lower interest rates beginning at midyear after the FOMC implemented 11 increases between March 2022 and July 2023 to

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

March 4, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 19

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DEVOS From Page 1

“Our family is incredibly grateful for the compassionate pediatric experts who are devoted to transforming the lives of children in remarkable ways,” Doug DeVos, co-chair of Amway, said in a statement. “We hope this gift will increase further collaboration between these individuals and organizations to advance medical, rehabilitative and mental health care for kids.”

The DeVos family donation also will support a breast milk donation and distribution station for infants at the Gerber Foundation Neonatal Center at Helen DeVos Children’s Hospital, plus fund the Center for Nursing Career Development to recruit and retain nurses at Corewell Health in West Michigan and support career development.

As well, $20 million will go into a permanent endowment fund to support the Child and Family Life Team that consists of nearly 40 professionals such as child life specialists and assistants, music and art therapists, and teachers.

“This generous gift will propel our mission of providing exceptional care and unwavering sup-

SURVEY From Page 1

concerns and rising inflation, and the interest rates that come along with that, that coincides with this erosion of confidence,” he said.

While the high U.S. inflation has moderated and come down over the last several months from 40year highs, “most businesses are still struggling to cope with the added costs of the previous inflation,” Calley said.

“It’s not like lower inflation means costs come down. A lot of that was tied to the cost of labor.

Those costs don’t come down, they only go up,” he said. “So, it’s a matter of still toiling through the compressed margins and the changes that have happened over the last few years.”

In the latest inflation report, the U.S. Bureau of Labor Statistics said last month that the Consumer Price Index increased to a seasonally adjusted 0.3% from December to January, the highest rate since September. The core CPI, which ex-

DDA

From Page 3

according to a DDA memo.

The amphitheater project will also allow the DDA and the city to build a continuous path along the river’s edge to support the Grand River Greenway project, Kelly said.

Other funding for the $184 million project is coming from a variety of public and private sources. That includes $70 million expected from private donors, including a $30 million naming rights contribution from Acrisure. As of early January,

port of families and we are profoundly grateful to the DeVos family for their continued support of our teams,” said Dr. Robert Fitzgerald, president at Helen DeVos Children’s Hospital. “This gift will allow us to continue to do the extraordinary, compassionate care which happens every day at Helen DeVos Children’s Hospital.”

At Mary Free Bed, a $5 million donation will support construction of the $60 million Joan Secchia Children’s Rehabilitation Hospital on the south side of Wealthy Street, across from the rehab hospital’s campus in Grand Rapids. The three-story facility will become the first rehabilitation hospital in Michigan dedicated to treating pediatric patients with traumatic illness and injury.

Mary Free Bed expects construction to begin this spring on the new pediatric rehab hospital with completion targeted for 2026. The hospital will help serve an additional 2,000 to 2,500 additional children annually and increase Mary Free Bed’s capacity for pediatric outpatient visits by 20%.

“West Michigan is daring to dream differently about health care for kids,” Mary Free Bed President and CEO Kent Riddle said in a statement. “With the DeVos fami-

ly’s support, we’re fulfilling a big-hearted promise to our youngest patients and their families. This gift will help bring to life Michigan’s first, freestanding children’s rehabilitation hospital — an extraordinary step in giving every child the opportunity to reach their greatest potential.”

The $5 million for Pine Rest will go for the $86 million, 66-bed Pediatric Center for Behavioral Health.

When opened in 2026, the two-story pediatric center on Pine Rest’s 68th Street campus in Cutlerville will include inpatient treat-

ment for children and adolescents, psychiatric urgent care, a crisis stabilization unit, and specialty outpatient clinics to prevent mental health crises for conditions such as depression, anxiety and eating disorders.

“Currently, many children and families in Michigan face weeks, months, or even years-long wait times for access to behavioral health care,” said Dr. Heide Rollings, the medical director for the Pine Rest Pediatric Center of Behavior Health.

“These services could signifi-

cantly improve a child’s performance in school, relationships with family and friends, and overall emotional well-being,” Rollings said. “With this transformational gift from the DeVos family, the Pine Rest Pediatric Center of Behavioral Health will truly change lives by expanding access to care, developing innovative treatment models and continuing our commitment to the community Pine Rest has served for over 110 years.”

The contributions announced Feb. 19 continue the DeVos family’s long role as benefactors for Corewell Health and other health care providers in Grand Rapids.

The family in 2006 donated $50 million toward the development of Helen DeVos Children’s Hospital, named after the family matriarch.

“Mom and dad always believed that buildings were merely platforms for people to do great things,” said Cheri DeVos, the daughter of Rich and Helen DeVos. “There are many amazing things that will occur at these great medical facilities, yet we know it is really about the special people who inhabit these spaces. We couldn’t be more appreciative of all that the area medical professionals do every single day to support kids and families.”

cludes volatile food and energy prices, increased 0.4% in January, the largest increase since April.

Overall, inflation was 3.1% in January, versus 3.4% in December.

While the present inflation rate is much lower than the peak 6.6% recorded in September 2022, it remains well above pre-pandemic levels.

The higher rate for January is “another reason” why PNC Bank economists doubt the Federal Open Market Committee will begin to lower interest rates at its next meeting this month and instead may wait until midyear.

“The committee wants to see more progress on inflation before it feels comfortable cutting its policy rate. The January reacceleration is likely an aberration; inflationary pressures in the U.S. economy are gradually easing,” PNC economists wrote in an economic briefing following the CPI report. “In particular, more slack in the labor market and slower rent growth will contribute to a slowing in services inflation this year.”

PNC projects that the FOMC will

start to reduce interest rates in May with a quarter-point cut in the benchmark federal funds rate, followed by three more quarter-point reductions through 2024.

“These expected rate cuts will support economic growth in 2024 and 2025. With inflation slowing and the labor market strong in early 2024, PNC is moving to a forecast for slower economic growth this year, a change from its previous baseline forecast for a near-term mild recession,” economists wrote in the briefing.

Despite outlooks that generally expect slow economic growth but no recession this year for the U.S., results from the SBAM survey show many small business owners are preparing for an economic downturn.

More than six out of 10 respondents said they are preparing for a recession by delaying capital expenditures, implementing hiring freezes and reducing overall expenditures, even as results indicate a sense of overall long-term optimism for their company’s prospects.

“People are going through every

line item right now and figuring out what’s essential and what is not essential, because there’s just uncertainty out there,” Calley said.

That uncertainty stems from challenges such as inflation and regulations, including new federal rules that take effect March 11 that will limit the use of independent contractors. More than half of the small business owners answering the latest survey report that the new U.S. Department of Labor rules on independent contractors “will have a substantial or moderate impact on their business,” according to SBAM. “The world for some businesses who use independent contractors or are independent contractors will change pretty dramatically on March 11,” Calley said. “Those types of situations create a scenario where I think there’s some level of pessimism sets in where, ‘I’d better hunker down here.’ Then you put on that all of the uncertainty in the world, that stuff piles on.”

In other survey results, pessimism among SBAM members about the next six months increased

from 20% a year ago to 28%.

Nearly two-thirds said they were optimistic about their company’s long-term survival, which suggests that “entrepreneurs expect conditions to improve beyond six months,” according to SBAM. The survey also found that more than one in four SBAM members now use artificial intelligence in marketing, data analytics, as virtual assistants, and in business operations.

About one-third said they would benefit from the restoration of a research and development tax credit that state legislators are considering.

Many people perceive R&D “as something that just big institutions do,” Calley said, but a lot occurs at small businesses that are developing new products and services, such as software firms or even craft brewers or wineries.

“R&D happens in every industry,” he said. imusantem as molendant a cum dolorro blabo. Epe comnis aut hil maximped molorunt officim enihill orescidunt.

Grand Action 2.0 had raised $57.8 million of the $70 million target.

The state of Michigan is kicking in $30 million, Kent County is contributing $15 million from its lodging excise tax fund, and the Grand Rapids-Kent County Convention/Arena Authority is using $22 million of its funds for the land acquisition of the site.

While the city of Grand Rapids did not give direct funds to the project, the city led the effort and contributed funding to relocate a trunk sewer line that previously ran through the site that had stood in the way of past development efforts.

NEWSMAKER

cer stadium. “It’s pretty awesome.”

Van Andel also noted a destination asset study completed in 2016 that laid out the potential for a stadium and music venue, as well as several other potential projects that have been discussed in the community for years.

Another change Grand Action 2.0 is experiencing is a shifting fundraising environment, Van Andel said.

Prominent West Michigan families used to be able to get projects off the ground with more ease, and “pick up the phone and literally call a handful

of people and that project was done,” Van Andel said. “(Those days) have gone and there are more generations coming up and now we’re reaching out to hundreds of foundations and businesses in the community to be a part of something that’s greater than themselves,” Van Andel said.

The program marked the first Newsmakers event for Crain’s Grand Rapids Business, which is based in downtown Grand Rapids and launched in April 2023 after Crain Communications purchased and merged the former Grand Rapids Business Journal and MiBiz.

Doug DeVos at announcement of $50 million for local pediatric centers. | MARK SANCHEZ

From Page 3

State University Secchia Center and, most recently, the Downtown Market.

However, Van Andel noted that this is the first time the organization has pursued two major projects simultaneously.

“We’re really focused on two projects right now, which is something that’s never been done by Grand Action, two projects at the same time,” Van Andel said, noting more than $1 billion in anticipated economic spinoff from the amphitheater and soc-

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Planners approve two indoor golf entertainment projects

By Kate Carlson

The Grand Rapids Planning Commission has approved two indoor golf projects that aim to bring life back to vacant spaces downtown and on the west side of the city.

The planning commission greenlighted separate alcohol sale and special land use requests for Pickel x Pin, an indoor golf simulator and pickleball project proposed at 662 Leonard St. NW, as well as Big Mini Putt Club, an indoor mini golf course and bar on the ground level of 70 Ionia Ave. SE. Big Mini Putt Club will be a ninehole putt-putt course with a full-service bar and eventually onsite food.

The first-floor suite at 70 Ionia has been vacant since 2019, and previously housed a Meijer Inc. test kitchen, nightclub and restaurant.

The 8,200-square-foot venue will take up the entirety of the first floor of the building.

Big Mini Putt Club Managing Partner Nicholas Jenkins told planning commissioners last month that he had been looking for a space for the business for the past

SOCCER From Page 1

meetings),” Grand Action 2.0 Executive Director Kara Wood community input meetings),” Grand Action 2.0 Executive Director Kara Wood told Crain’s Grand Rapids Business.

Here are new details about the proposed project that would span 7.25 acres of city owned land, as well as property currently owned by the YMCA.

What will the stadium look like?

The stadium would be located on surface parking lots just west of US-131 and will include two buildings connected by a circular concourse, according to the planning application.

“Storefronts connect office, hospitality and retail spaces of the west building to the streetscape in support of a healthy, walkable pedestrian experience,” according to the planning application. “Architectural metal panel and burnished masonry walls clad internal support spaces including utility, commercial kitchen and restroom spaces.”

The stadium design will reflect the community’s culture within the furniture and boating industry, and will be constructed with a mix of metal, glass and other materials used within local architecture, the plan reads.

The west building would be three stories and contain a restaurant, team store, the majority of suites and a press box. The east building would be one story and include locker rooms, team and official spaces, security, facility, maintenance and utilities.

The synthetic turf soccer pitch would be oriented north-south, with the scoreboard at the north end of the stadium. The plans call for 8,500 individual seats with a ca-

six to nine months. The putt-putt concept has two locations in Chicago where putt-putt leagues and tournaments are hosted and also envisioned as part of the Grand Rapids location.

The 372-capacity establishment will serve alcoholic and zero-proof cocktails and draft beer and wine.

Upper floors in the building are occupied by Acrisure LLC, which has been leasing office space there since last year.

Planning commissioners agreed that the project will help activate the corner. Rockford Construction Co. owns the building and is doing the build-out for the project.

Pickle x Pin co-owner Blaine Westerlund told planning commissioners during the Feb. 22 meeting that the project is something he and co-owner Zachary Verhulst had been discussing for a while.

Westerlund is an architect at Pure Architects, and Verhulst is the CEO of the architect firm. They recently moved their offices down the street to the Shade Shop building located at 422 Leonard St. NW. “We saw this dilapidated build-

pacity to expand to a total of 11,000 seats in the future.

The irregularly shaped project site is about 7.25 acres, according to the plans, from the west property line along Winter Avenue to the east property line along Mount Vernon Avenue, just west of US-131.

What will happen at the stadium?

Grand Action 2.0 anticipates the stadium will host an as yet unnamed Tier II professional team.

Plans call for 15-20 home soccer games during the team’s season, which runs from April through September. Soccer games would generally occur on weekends.

The stadium also may host up to 56 other events, which could include tournament events for youth, high school and college soccer teams, as well as other sports, according to the project application.

Katie Hultin, the head coach of Grand Valley State’s women’s soccer team, previously told Crain’s Grand Rapids that having a couple of their games at the stadium would be “a real draw for GVSU students and athletes.”

Several people also said at recent community meetings that they hope the stadium is used occasionally for youth sports and tournaments, as well as concerts.

The development team has stated that while the stadium is “soccer-focused,” it is meant to be a mixed-use facility. ArtPrize, World of Winter and other festivals could potentially take place at the stadium in addition to soccer games.

Outside of soccer games and events, the site calls for a team store and restaurant. The restaurant is expected to open just prior to lunch time and close in the late evening.

Who is involved?

The project would be located on

Pickle x Pin is planned at a vacant building on Leonard Street.

Big Mini Putt Club will open on the ground level at 70 Ionia Ave. SE.

| CRAIN’S GRAND RAPIDS FILE PHOTO

| CRAIN’S GRAND RAPIDS FILE PHOTO

ing a few blocks down from where we work and saw it as a great opportunity to invest in where we work,” Westerlund said. “We both are super involved in sports and really love golf, and pickleball is really growing and so that’s kind of how we got to this point.”

Westerlund and Verhulst plan to fully renovate the 6,466-squarefoot building and install three fullsize pickleball courts, four golf simulators and a small retail space that would include the sale of snacks

and alcohol. Customers will be encouraged to patronize neighboring restaurants for food.

Spencer Arnold, manager of Nature’s ReLeaf dispensary adjacent to the project site, said he is slightly concerned about parking, but the project should “bring a lot more foot traffic that is currently not on Leonard Street.”

“Overall I feel like the idea behind the business brings a better light to the West Grand (Neighborhood) and a younger audience to

that area as a whole,” Arnold said.

Commissioners also approved a parking waiver for the project, which normally would be required to provide 16 parking spots. A nearby 18-space West Leonard parking lot and street parking are expected to fulfill the project’s parking needs.

A landlord who owns four single-bedroom apartments next to the project voiced concerns during the meeting about how pickleball — which is known to be noisy — could disturb his tenants.

multiple parcels owned by various entities including the YMCA of Greater Grand Rapids and the Grand Rapids Downtown Development Authority.

The former Big Boy restaurant site on Pearl Street would also be included in the project. The 407 Pearl St. property was purchased by DP Fox Ventures LLC in July 2022 for $3.175 million. DP Fox, which serves as the family office of Dan and Pamella DeVos, announced the property donation to the Downtown Development Authority last month.

If the project comes to fruition, it would be owned by the Grand Rapids-Kent County Convention/ Arena Authority (CAA), similar to other major developments downtown such as DeVos Place, DeVos Performance Hall and the Van Andel Arena.

The property acquisition for the project site is “part of the due diligence we’re currently working on,” Wood told Crain’s.

As part of the process of assembling the project site, the Summer Avenue right-of-way between Pearl Street/Lake Michigan Drive and Blumrich Street will be vacated.

Blumrich will also be vacated between Summer and Mount Vernon Avenue.

Progressive AE is designing the soccer stadium project.

aged at the Van Andel Arena.

The overall parking demand for an event held at the soccer stadium is estimated to be around 2,400 spaces. The development team expects that need to be met by 16,042 surface and parking deck spaces located within a 15-minute walk of the proposed project site.

Parking needs are also expected to be met with public transit and non-motorized travel, according to the planning application. Thirty-two bicycle spaces also are proposed on the project site, as well as a bicycle ride share zone.

“While vehicular traffic is expected, transit, ridesharing, biking and walking will be encouraged through the limited provision of parking onsite,” the application reads.

The development team is working with partners including The

Rapid, Downtown Grand Rapids Inc. and Mobile GR to put together a multi-model approach of travel to the stadium.

Four entrances are planned for the stadium. The main entrance will be at the southeast corner of the site at the intersection of Pearl Street/Lake Michigan Drive and Mount Vernon Avenue, which will be open on non-game days. The north plaza located at Blumrich and Summer will serve as a secondary entrance, which will accommodate those traveling to the stadium from the north.

As well, a new 42-space parking lot is proposed adjacent to the YMCA building accessible from Winter Avenue, and the balance of YMCA parking is planned to be accommodated by existing GVSU parking ramps nearby.

How will people get there?

As proposed, the soccer stadium would not include onsite parking and would be constructed on 779 existing surface spaces on the cityowned DASH commuter parking lot and the YMCA’s parking lot. No additional parking is required for projects in the City Center Zone District, where the project site is located.

The CAA will be working with the city’s Office of Special Events to moderate traffic during event times, similar to how traffic is manMarch 4, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 21

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THE CONVERSATION

New Dematic president brings 3 decades of experience to next growth phase

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 Director of Visual Media Stephanie Swearngin Creative director Thomas J. Linden, tlinden@crain.com Associate creative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Notables coordinator Ashley Maahs

The new president of Dematic Corp. plans to leverage his industry experience to help the automation and supply chain solutions company navigate ever-changing market demands. Michael Larsson recently was appointed president of Dematic and a member of the executive board of Kion Group AG, the German multinational manufacturer that acquired Dematic in 2016 for about $2.1 billion. Larsson, who grew up in Sweden, began his professional journey as an intern at Swedish-Swiss multinational corporation ABB Ltd. and spent the next 30-plus years transitioning to different leadership positions at the electrification and automation technology company.

Larsson then joined Dematic in 2021, serving as executive vice president of the company’s Americas region. He will retain that responsibility in his new role, helping accelerate growth for the region from Grand Rapids, where he has been based since 2021. With roughly 6,000 total employees in 25 countries, Dematic’s global headquarters is in Atlanta, Ga., while the company’s North American headquarters is in Grand Rapids. The company is among the world’s top materials handling system suppliers, reporting revenue of more than $3.2 billion in 2020, according to industry publication Modern Materials Handling. Larsson recently spoke with Crain’s Grand Rapids Business about his career experience, his priorities in the new role and the growing role of automation in the supply chain. This interview has been condensed and edited for clarity. | By Kayleigh Van Wyk After 32 years at ABB, what prompted you to make a career change?

Being somewhere for such a long time, you get very comfortable with the business, but you still want to have a challenge, right? You feel like you want to push yourself to learn something different and do something different. So, what went through my mind when I got the request to join Dematic was, I have a little bit left in my career — I really want to take what I learned at ABB from an automation perspective and from a leadership perspective into a different industry. I want to see how applicable it is and what else I can do to challenge myself to do something different.

What are some of your priorities in your new role as president?

The market isn’t what it used to be. It changes, and as we go forward, the solutions that we provide are going to become more complex because the challenges that we solve are more complex for the companies that we’re working with, which means that we’re going to be more software- and flexible

Michael Larsson is president of Dematic Corp.

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Joining Dematic in 2021, what was it like to help lead the company through pandemic-related supply chain disruptions and shifting consumer habits?

I came on just as COVID started to progress. Because of COVID, people stopped going to stores and instead started buying online, so e-commerce just took off like crazy. Being in the e-commerce space, we saw that for many customers and we tried to keep up with that new demand. On top of that, the supply chain broke, so how do you ship parts? It was fairly chaotic, but it was also a good learning period for the organization. It was very rewarding to see how the organization came together in a problem-solving mode and came out of it very successfully.

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

automation-focused. That’s going to drive a need for upscaling our skills and making sure that we can partake in that. I think we have an opportunity to kind of retool our business and make sure we’re part of that journey.

You have to continue the journey — to follow the market and be the leader.

think my outlook is pretty optimistic for the back half of 2024 and going forward. It’s good sometimes to kind of get a pause supported by the market and then make sure that you’re ready for the next growth period. We’re going to be well set to embark on the new growth phase as the market comes back.

What’s your perspective on the current market for automation in the supply chain?

The market is a little soft because we still have high interest rates right now, which means customers are going to maybe wait a little bit to spend some more cap-ex dollars. But I

What might prompt that growth?

I think there’s a need for more automation in the supply chain business, and we are in the prime spot for doing that. I think there are a lot of companies who want to play a part in this whole new supply chain industry because it’s growing so fast. We’re going to see

new entrants coming in with experience, perhaps from other industries that they can apply to the supply chain, like software companies, for example.

Your company has a long history in Grand Rapids. How do you feel about that legacy and the future of being here?

We like Grand Rapids. We’ve been in Grand Rapids since 1939, but under different names because we’ve gone through some different ownership over time. We continue to grow here, and this is one of the biggest units that we have in America and globally. We want to continue to invest here and be part of the business community.

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 41, Number 5 Crain’s Grand Rapids Business (ISSN 2836-7723) is published biweekly, with an extra issue in April and September, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit, MI 48207-2732. Periodical postage paid at Grand Rapids, Michigan. © Entire contents copyright 2024 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

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