Crain's Grand Rapids Business, March 4, 2024

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 led 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.

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

e 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. e project is also applying for grants from EGLE for utilities on site.

e 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

NEWSMAKER

KC Crain interviews

Carol Van Andel, Grand Action 2.0 co-chair and Newsmaker of the Year

PAGE 3

DeVos family puts $50M toward three pediatric projects

Various programs from Corewell Health, Pine Rest and Mary Free Bed all will bene t

By Mark Sanchez

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 rst in Michigan to blend medical and mental health care for young patients. e donation will also support expanding a comprehensive care pro-

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.

Small business con dence wanes

Survey nds economy, in ation and labor woes still are signi cant challenges

By Mark Sanchez

Small business owners across Michigan feel a little less optimistic about the short-term future, as in ation, economic uncertainty, sta ng shortages and the resulting higher labor costs take a toll on their con dence.

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. at’s down seven percentage points

from a year ago.

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

MANUFACTURING

Haworth enjoys growth streak amid of ce uncertainty

PAGE 4

REAL ESTATE

‘Enchanted’ 129-year-old

Kalamazoo castle lists for $5M

PAGE 6

Renderings

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

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.”

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

| PhOTOGRAPhY BY SETh ThOMPSON

Crain’s names Grand Action 2.0 the 2023 Newsmaker of the Year

Fifteen more organizations earn honors in various industries

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.

|

By Kate Carlson

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

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

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 See NEWSMAKER on Page 20

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,”

More than 300 people attended the annual event at Frederik Meijer Gardens. | SETh ThOMPSON

Renderings for the proposed Acrisure Amphitheater in downtown Grand Rapids.

cOUrTESY OF PrOGrESSIVE aE

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

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

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.”

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

Haworth’s showroom in Chicago. COURTESY PhOTO

‘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

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.”

Henderson Castle is an 11,000-square-foot mansion built in 1895 in Kalamazoo’s West Main Hill neighborhood. |

OF

Developer plans downtown restaurant, bar, golf simulators

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

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

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.

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

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.

Kent County rejects calls to expand early childhood millage

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

“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 density.”

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.

Kristin Turkelson, Grand Rapids City Planning Director

The area was rezoned from a traditional neighborhood-transitional city center (TN-TCC) to a traditional neighborhood-city center (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, Grand Rapids City Planning Director Kristin Turkelson previously told Crain’s Grand Rapids. The planning department initiated the process be-

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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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.

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

Grand Rapids seeks to add post office property to taxing district

By Kate

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

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

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.

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1

Jericho, N.Y.

2 REVOLUTION

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Redwood City, Calif.

3 HOLCIM LTD.

4

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REALTY New York, Southfield

EQRX INC. Cambridge, Mass.

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

DURO-LAST INC. Saginaw Bank of America Corp.; BofA Securities Inc.

Lazard

Procter LLP; Innisfree M&A Inc.

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

Closed Aug. 2023

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.

$1,586.6

Feb. 2023 Holcim Ltd completed the acquisition of Duro-Last Inc. from Burt family on Feb. 24, 2023. $1,293.0

FIRST BRANDS GROUP LLC Rochester HORIZON

GLOBAL CORP.

SOURCE:S&PGlobalMarketIntelligence,(Marketintelligence.spglobal.com)andCrain'sresearch|Insomecases,morethanoneestimatedvalueofatransactionexists.Inthosecases,Crain'shas chosenthevalueitbelievestobemostaccurate.S&Pfiguresmaydifferfromotherpublishedfigures,whichsometimesexcludeassumedliabilitiesorotherfactors.Fordealsinvolvingcompaniesgoing publicviaaspecialpurposeacquisitioncompanyreversemerger,thesurvivingcompanyislistedastheacquirerandthecombinedvalueofthecompaniesisusedforthedealvalue.Thelistdoesnot includeall2023transactions,onlythosevaluedat$10millionormore.Itisnotacompletelistingbutthemostcomprehensiveavailable.*No.30wasnotontheS&Plist,butwascoveredbyCrain'sGrand Rapids Business e. Crain's estimate. 1. Greater than $200 million. 2. Over $100 million.

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ResearchedbySonyaD.Hill:shill@crain.com|ResearchedbySonyaD.Hill:shill@crain.com|ThislistisanapproximatecompilationofthelargestlawfirmsinMichigan.Totalnumberofattorneysdoes notinclude"ofcounsel."Itisnotacompletelistingbutthemostcomprehensiveavailable.Informationwasprovidedbythelawfirmsorgatheredfromtheirwebsites.Firmswithheadquarterselsewhere are listed with the address and top executive of their main Michigan office. NA = not available. e. Crain's estimate.

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Inside

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.”

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

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.

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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.

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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

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.

“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

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.”

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Bounceback of downtowns vital to health of cities

Driving 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 projects like the Hudson’s site or the Book Tower redevelopment or major events like the NFL Draft in April, a lot of energy is going into downtown Detroit.

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.

Prevailing wage law will harm taxpayers, job providers

Beginning this month, all contractors and subcontractors in Michigan are required to pay their employees artificially established wages set by the government on publicly funded state construction projects.

Restoring our state’s prevailing wage law will raise costs for Michigan taxpayers, increase construction costs on important projects like road improvements, and hinder the growth of our economy. But for merit shop contractors like us, the new prevailing wage law also represents a clear and present danger to the health of our businesses. For our company, it isn’t just a cost issue, it’s about the inherent risk to the livelihoods of our valued employees.

It’s important to note that along with our ongoing commitment to provide quality heating and cooling service to the commercial and industrial markets in Michigan, we are a 100% employee-owned company. That means Pleune has a fiduciary responsibility to our employees. The simple truth is that we already pay premium wages to our people because we value and greatly appreciate the work they do, and in a competitive market, it’s critical to keep good people.

So why is the new prevailing wage law too risky? With any largescale construction project, there is a general contractor and a number of subcontractors performing various duties.

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.

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.

That’s why Pleune Service Company has made the difficult decision to no longer bid for publicly funded state projects after the law went into effect Feb. 13. Although a significant percentage of our construction work has historically been on state-funded projects, we are now looking for projects elsewhere.

However, with a prevailing wage project, the contracting agent must ensure every employee on the project is compensated for the prevailing wage respective to their specific job title and the task they are performing at any given time. That includes every employee working for the many independently owned subcontracting firms on the project.

And there’s not just one prevailing wage;

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.

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.

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

MICKEY CIOKAJLO

Commercial lenders expect steady demand for credit

By Mark Sanchez

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

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

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

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.

ARCHITECTURE

Progressive AE

Progressive AE has hired Matthew VanSweden, LFA, LEED AP BD+C, WELL AP, as Sustainability Lead.

Matthew is a nationally recognized thought leader and subject matter expert in climate justice and regenerative design. He has 20 years’ experience working within the architectural and engineering eld, helping clients and project teams to relentlessly pursue good and reach their sustainability goals.

Matthew holds a Bachelor of Fine Arts in Collaborative Design from Kendall College of Art and Design.

BANKING & FINANCE

Legacy Trust

BANKING & FINANCE

Live Oak Bank

INSURANCE

REAL

Commerce CRE

Benjamin VanDerWeide III joined Live Oak Bank in 2024 as vice president of small business lending. Benjamin has been involved in commercial, business, and SBA nancing since 1995. He has facilitated SBA lending since 2010, working in diverse markets such as New York City, San Francisco, Detroit and Grand Rapids, Michigan. He specializes in nancing business acquisitions, partner buyouts, and owneroccupied commercial real estate.

HEALTHCARE

Care Resources

INSURANCE

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 nalized in January.

After a successful 45-year career ensuring West Michigan residents have access to quality health care, Care Resources Chief Executive Of cer Tracey McKnight has announced plans to retire in January 2025. McKnight joined as CEO in 2018. She has led signi cant growth and expansion of programming and services during her tenure with the nonpro t. Prior to Care Resources, she worked in a variety of leadership roles with increasing responsibility at Holland Community Hospital and Corewell Health.

Gallagher Bene t Services GBS promotes Chadd Hodkinson to Market Leader, MI Public Sector. He will be responsible for continuing to guide Gallagher’s growth in the MI market. By empowering teams who have deep expertise in MI public sector bene t programs, anticipating public sector client needs and exceeding client expectations, the Gallagher Public Sector Practice is driving client bene t program stability & sustainability. Chadd joined Gallagher in 2015, and has over 20 years of professional consulting experience.

Lighthouse, an Alera Group Company

This promotion acknowledges Griff Gatewood’s leadership in the commercial insurance space and his commitment to fostering client relationships across Alera Group’s Midwest operations. Griff has achieved exponential success in his 10-year career, leading his region in new business sales. He is known by colleagues and clients alike for his ability to innovate solutions to reduce the total cost of risk and has received national recognition for his dedication to the success of those around him.

Frank Melchert, SIOR, Managing Broker and Principal of Cawley CRE will lead the rm’s expansion into West Michigan with Commerce CRE, a Cawley Company, in Grand Rapids. Melchert brings 20 years of commercial brokerage experience to a market where he has incredibly strong ties and market knowledge. With the support and strategic partnership of Cawley CRE, Melchert will build on the foundation his father-in-law, Ray Kisor, established nearly 50 years ago.

Sytsma

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-

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

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.

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-

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

NEWSMAKER

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-

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.

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-

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

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

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.”

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.

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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

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

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

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.

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 man-

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

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

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.

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.

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.

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

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

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.

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.

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.

Kayleigh Van Wyk

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.

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

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 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.

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