Crain's Grand Rapids Business, July 8, 2024

CRAINSGRANDRAPIDS.COM I JULY 8, 2024

Sligh building developer denies $4M loan default Huntington Bank asks the court to appoint a receiver and start foreclosure process

RACHEL WATSON

By Kate Carlson

Walker wrestles with housing density decisions Mayor Gary Carey cites fatigue as multi-, single-family interests clash

By Rachel Watson

To Gary Carey, multifamily housing development is reaching a tipping point in his city, threatening not just the quality of life of single-family homeowners but also the city’s coffers and ability to provide public services.

Carey is serving in his last term as mayor of Walker, which

in May lifted a six-month moratorium on dense housing developments to give city officials time to evaluate housing development priorities. The city of 25,000 people borders Grand Rapids to the west.

He said one of his biggest takeaways from recent months is that community members and city leaders are experiencing

“multifamily fatigue.”

“It’s getting to the point of tipping to where it’s more than 50% of our housing stock,” he said.

On May 5, Walker ended a sixmonth emergency moratorium that had paused developments of at least three-and-a-half units per acre. City staff and elected See WALKER on Page 28

The development group planning a massive mixed-use project at the former Sligh Furniture Co. building has denied its lender’s claims that the company defaulted on a nearly $4 million loan used to buy multiple adjacent properties to the factory.

Jeremy Manson, partner at Williams, Williams, Rattner & Plunkett, P.C. filed a response on June 19 to Huntington Bank’s lawsuit against JV SBAM SA LLC, which is registered to developer John Gibbs, co-founder of Detroit-based Sturgeon Bay Partners.

In the 31-page response filed in the U.S. District Court Western District of Michigan, Gibbs and associated investors repeatedly deny Huntington’s claims that they defaulted on the $3.96 million loan before it matured on Jan. 3, 2024.

Huntington also claims the developers defaulted on the loan for allegedly failing to pay summer 2023 property taxes on the three properties involved with the broader Sligh redevelopment: 440 Cesar E. Chavez Ave. SW, 188 Wealthy St. SW and 190 Wealthy

Sligh redevelopment properties 190 Wealthy St. SW 188 Wealthy St. SW

440 Cesar E. Chavez SW 211 Logan St. SW Source: Google Maps

St. SW. Property records show that the developers are delinquent on more than $52,000 in summer 2023 taxes for those properties, which were acquired in May 2021 for $5.3 million.

Gibbs declined to comment on specifics in the lawsuit, but said in an emailed statement: “We do not comment on ongoing legal matters, but we are confident that this will be resolved in short order. We are working best next See SLIGH on Page 28

Mushroom grower ready to quadruple production Mycophile’s Garden expansion includes warehouse growing facility, commercial kitchen

By Abby Poirier

Chris Swinson, “chief fungal officer” at Mycophile’s Garden. | COURTESY PHOTO

Local mushroom grower Mycophile’s Garden is preparing to quadruple production in the next year with the addition of a new growing facility and commercial kitchen to produce fungi-based tinctures and jerky.

Chris Swinson bills himself as the “chief fungal officer” of Mycophile’s Garden, which he

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co-founded with Aaron Henessee in 2014. He got started growing mushrooms after buying a kit, recalling that he was “fascinated by the process.” A mycophile is a mushroom or fungi enthusiast.

From there, Mycophile’s Garden was born, and has grown exponentially over the past 10 years.

These days, the business sells mushrooms at 15 farmers markets each week across West Michigan,

while distributing in seven stores, including Bridge Street Market, Kingma’s Market and Martha’s Vineyard in Grand Rapids.

Mycophile’s Garden is in the middle of expanding its operations with the addition of a new warehouse growing facility where Swinson aims to increase production of oyster, lion’s mane, See MUSHROOMS on Page 27

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NOTABLES Meet West Michigan’s Notable Leaders in Commercial Real Estate

BANKING & FINANCE More banks could be up for grabs in 2024

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University spends $45M on land near UM Health-West The 10.2 acres includes two office buildings and room for expansion

By Mark Sanchez

University of Michigan plans to buy two parcels and office buildings adjacent to its Wyoming hospital for $45 million that could set the stage for future expansion.

The university’s Board of Regents on June 20 approved an agreement to buy 10.2 acres located adjacent to the University of Michigan Health-West Hospital, and two office buildings of 12,077 square feet and 29,763 square feet.

“We are acquiring this strategi-

cally located land directly adjacent to the University of Michigan Health West Hospital to secure our long-term growth opportunities in The Village development,” university Executive Vice President and CFO Geoffrey Chatas wrote in a memo to the Board of Regents.

A closing date has not yet been determined, and the university will continue to lease space at the buildings, according to the memo.

A university spokesperson was unable to immediately identify the seller.

City of Wyoming property records indicate that parcels are owned by Metro Health Village Retail LLC and Metro Office Building LLC, two corporate entities registered with the state in 2006 and 2005, respectively, by developer Gary Granger of Granger Group LLC. Granger Group developed the Health Village surrounding the 208-bed UM Health-West Hospital that opened in 2007 at Gezon See UMH-W on Page 29

University of Michigan Health-West in Wyoming. | COURTESY PHOTO

BAMF Health closes in on $100M clinic in Detroit Health care startup still seeking partner for its second theranostics facility

By Mark Sanchez

Dr. Rolf’s Barbeque recently opened in the former Old Boys’ Brewhouse location on Spring Lake. | MARK SANCHEZ

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Securing another $5 million in state funding provides further financial backing to BAMF Health’s plan to develop a clinic in the city of Detroit for the advanced treatment of cancer and other diseases.

The Grand Rapids-based BAMF Health is “very close” to selecting a partner for a Detroit theranostics clinic that would cost “well north of $100 million” to develop and open by early 2027, said Chief Operating Officer Chad Bassett.

A decision on a partner for the project could come “in the coming months, if not weeks,” Bassett said, adding that a location is not yet finalized.

“We are looking at partner options with nearly every health system in the metro Detroit market, as well as with the academic medical centers and the schools, as See BAMF on Page 28

New lakeshore eateries are already open or will be soon | Abby Poirier In time for summer, Dr. Rolf’s Barbeque has expanded with its second lakeshore location, this time on the shores of Spring Lake.

The popular Muskegon restaurant opened the satellite location at the site of the former Old Boys’ Brewhouse at 971 Savidge St. in the village of Spring Lake. The new restaurant offers a deck overlooking Spring Lake and the Grand River, as well as docking space and to-go options for boaters looking

to grab a meal on the water.

The restaurant officially opened the doors in early May on Spring Lake.

Dr. Rolf’s offers classic barbeque options like pork belly, grits, brisket, mac and cheese, wings and burnt ends.

Owner Judy Hissom noted that while Spring Lake has a lot of festival and boat traffic over the summer, Dr. Rolf’s location is seated in the center of lakeshore activity.

“There’s marinas on either side of us. There’s a hotel right here, just under the bridge and down the boardwalk from us,” Hissom said. “(Spring Lake) is a summer destination, with a lot of traffic from Grand Rapids, too, as (visitors) head over to the lakeshore. They come right through Spring Lake, so we’re positioned in a really nice central location for those people.”

While the restaurant hopes to expand into on-site brewing

through partnership with a yet-undisclosed local brewery, Hissom is focused, for now, on weathering the summer crowds.

“It’s been busy, it’s been fun,” she said.

In addition to Dr. Rolf’s, here’s a snapshot of the lakeshore dining scene, including restaurants that are newly opened and opening soon, or that have recently closed.

See EATERIES on Page 29

BAMF Health Inc. founder and CEO Anthony Chang speaks at the formal launch of the company’s flagship cancer treatment facility in 2022 in Grand Rapids. | COURTESY OF BAMF HEALTH

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Upscale urban escape embraces modernism and connection to nature

By Rachel Watson

An accessible home meticulously designed to give occupants the feeling of living in nature is on the market as its owners prepare to move out of state to be with family.

Sharyl and Claude Titche listed their three-bedroom, five-bathroom, 4,283-square-foot home in Grand Rapids Township on June 10 for $2.5 million.

Julie Rossio, of Keller Williams Grand Rapids East, has the listing.

The house was built in 2019 and has two levels with a main floor and a basement.

“It’s unparalleled in design,” Rossio said of the home.

Conceived by Zeeland-based modern luxury design firm Lucid Architecture, the home won the 2021 Residential Architecture Award from the American Institute of Architects’ Grand Rapids chapter for its innovative design and engineering, particularly for the soaring roof that appears to hover above the brick structure.

The house is on just less than a half-acre in a sliver of Grand Rapids Township that’s sandwiched between Grand Rapids and East Grand Rapids.

Claude Titche recently retired from his role as tax partner at the former Beene Garter accounting firm, which was acquired by Doeren Mayhew in January 2022.

Sharyl Titche also retired after working in management at the upscale housewares retailer Williams Sonoma.

Although Sharyl Titche said she feels a deep “emotional” connection to the home that they had specifically designed to their tastes, the pair is now leaving Michigan to be closer to their grandchildren in California.

A ‘connection to the environment’ The Titches raised their two children in a midcentury modern home about 1 mile away in East Grand Rapids. For their new place, they wanted a similarly memorable and architecturally significant style, but on a smaller scale, designed for aging in place.

After buying a vacant Grand Rapids Township parcel for $200,000 in 2018, they interviewed several design firms before selecting Lucid Architecture for the new build, Sharyl Titche said.

“We actually saw an article in Dwell Magazine, and Lucid was referenced,” she said. “Photographs of some of their work were shown … and it immediately just struck a harmonious chord when I

saw the photos. I showed Claude, and he was like, ‘Oh my God, yes.’

We read the whole article and the credits and were stunned to see that they were (based) in Zeeland.”

Titche said the pair “immediately felt understood” when they met with the firm led by architects Eric De Witt and Dana Grassmid.

“For me, what is important about modern design and what we really wanted to achieve with this house was a connection to the environment. I think that is a key component of modernism,” she said.

The biggest design challenge was to orient the house in a way that took full advantage of the natural beauty of the lot, with its abundant greenery and creek flowing through the back. They also sought a privacy buffer from neighbors on both sides.

“We wanted it to really feel like a private retreat when we were inside, and so Lucid just magically made that happen,” Titche said.

“That was a really important part of the design, that connection with nature — and boy, wherever you are standing in this house, and whichever room you are in, you see blue sky, you see treetops, and you see wildlife.”

The couple hired Grand Rapids Township-based Heartland Builders to construct the custom home.

Structure and layout The home is built with a long flat roof uniting dual box structures with separate functions. Deep overhangs on both the front and back protect the porch and patio from the elements.

The “public spaces” box contains the main living areas of the home, with floor-to-ceiling glass windows at the front and back to give uninterrupted visibility.

Brick walls on the sides have windows just below the roof level to screen the interior from neighbors while also letting in light.

Specially engineered transom windows framed in steel support the roof and are equipped with remote-controlled recessed blinds for evening privacy.

The living space includes a large kitchen with modern appliances and built-in custom cabinets by Adam Page, owner of Grand Rapids-based Page Woodworking Inc. The 18-foot great room ceiling is covered in Alaskan white cedar that extends from indoors to the exterior overhangs, creating a seamless sightline. Engineered white oak flooring was chosen for elegance, durability and visual cohesion.

The “private spaces” box contains the sleeping and utilitarian

This 2019 upscale modern house on just less than a half-acre in Grand Rapids Township is listed for $2.5 million. | JULIE ROSSIO, KELLER WILLIAMS GRAND RAPIDS EAST

spaces, including the primary bedroom with an ensuite bathroom, mudroom/laundry room with a half bath, butler’s pantry, and another guest half-bathroom.

With lower ceilings than the public box, it’s designed to be homey and secluded.

Charcoal brick was used for the home’s exterior and parts of the interior great room walls — a minimalist approach to materials selected to ensure continuity, Titche said.

“It really helps with that connection, that classic (technique) of blurring the inside and out,” she said.

Options for accessing the lower level include an elevator and an open staircase to the left of the

front door, which allows light and treetop views to reach the downstairs seating nook.

The basement contains a media room with a wet bar, a second laundry room and two private bedrooms with ensuite baths ideal for hosting family members.

Accessibility meets luxury Lucid designed the home to be universally accessible, with large doors, no thresholds, and hallways and bathrooms that accommodate wheelchairs.

The covered back deck, which has plumbing for an outdoor kitchen, is tiled with durable flooring that matches the interior wood floors.

“You could easily add a pool back there,” Rossio, the seller’s agent, said of the yard behind the patio.

The home has several modern amenities that add to the luxurious feel, Rossio said, including a butler’s pantry, whole-home generator, in-floor heat in the primary suite bathroom, hidden electrical outlets throughout, and glazing on the bricks that capture heat in the winter.

Rossio said with the home’s high quality and the fact that residential construction costs have inflated more than 30% since 2019, she believes the price of $584 per square foot is a good deal.

“It’s an incredible, one-of-akind design,” she said.

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Priority Health expanding out of state for the first time

By Mark Sanchez

Priority Health will cross state lines for the first time with the acquisition of an Indiana health plan.

The Grand Rapids-based Priority Health expects to close by the end of 2024 on the acquisition of the Fort Wayne-based Physicians Health Plan of Northern Indiana Inc., which has more than 52,000 members in Indiana and Ohio.

Priority Health President Praveen Thadani described Physicians Health Plan of Northern Indiana as a “phenomenal organization” with a similar operating culture.

“We found them to be a very attractive partner. It’s a very deeply community-oriented organization with a strong focus on quality, innovation, affordability and compassion, which are kind of the values and themes that we lead with as well,” Thadani told Crain’s Grand Rapids Business. “We found this to be a phenomenal opportunity for us and a phenomenal opportunity to create scale and build on the great work that Physicians Health Plan has already done in their marketplace.”

Founded in 1983, the nonprofit Physicians Health Plan of Northern Indiana offers self-funded and fully funded commercial health policies. The company generated 2023 revenues of nearly $200 million, Thadani said.

Terms of the transaction were not disclosed. Financial proceeds from the sale will go to Physicians Health Plan of Northern Indiana’s foundation.

The acquisition will give Priority Health a greater ability to market health policies across state lines, particularly to employers with facilities in one state and employees who reside in another.

“We do have consumers saying ‘Hey, we have Ohio on the other side and Indiana on the other side, and it is important that we can travel back and forth, not just on the commercial side but across other markets as well,’” Thadani said. “We certainly have members who could benefit from this today.”

Priority Health since 2018 has had a strategic partnership with national health insurance carrier Cigna to use its care network outside of Michigan, which enables members to use their coverage in other states.

State regulators in Michigan and Indiana will need to review and approve the transaction. Chicago-based law firm Taft Stettinius & Hollister LLP serves as external legal counsel to Priority Health. Cain Brothers, a division of KeyBanc Capital Markets, serves as financial adviser to Physicians Health Plan of Northern Indiana, which is advised by Faegre Drinker Biddle & Reath LLP. Priority Health first connected with Physicians Health Plan of Northern Indiana two years ago when a mutual acquaintance introduced Thadani to his counterparts in Indiana. They maintained contact and “our relationships have really blossomed, and we decided this was the right step for us to take,” he said.

“Joining Priority Health has great

potential to offer additional resources and innovation to PHPNI customers and members. We expect this transaction will benefit the communities and businesses we serve,” Physicians Health Plan of Northern Indiana President and CEO Gary Shearer said in a statement on the transaction.

The proposed acquisition is Priority Health’s first since acquiring the 87,000-member, nonprofit Total Health Care in Detroit in January 2020. The deal included a $25 million pledge over three years to the Total Health Care Foundation to support health initiatives to im-

prove care and social determinants of health in the Detroit area.

Physicians Health Plan has statewide authority to sell health policies in Indiana, and last year secured approval to expand into six counties in northwest Ohio starting in 2024.

Further expansion in the Ohio market will eventually occur, Thadani said.

“We want to be thoughtful around expanding beyond commercial markets in Indiana and Ohio. When the timing makes sense, we evaluate every market carefully,” he said.

The acquisition will give Priority Health a greater ability to market health policies across state lines, particularly to employers with facilities in one state and employees who reside in another. | COURTESY OF PRIORITY HEALTH

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7/2/24 12:05 PM

Downtown Grand Haven historic building changes hands

By Kate Carlson

A historic three-story building that most recently housed Copper Post restaurant in downtown Grand Haven changed hands recently after selling for $2.5 million.

The 152-year-old building at 100102 Washington Ave. was purchased on April 1 by GH Washington Properties LLC, which is registered to Jeff Wustman, partner at Grand Rapids-based Construction Simplified, according to property records. The building was acquired under a land contract from Ralph Allen Jr. below the original listing price of $2.8 million. Wustman declined to comment on the sale.

Doing business as Lakeside Traffic LLC, Allen sold the building for more than double the $1.2 million he paid for it in March 2014. Allen could not be reached for comment.

Despite selling under the initial listing price, the property had steady interest from restaurant operators, said Andrea Crossman, Realtor at Coldwell Banker Woodland Schmidt and the listing agent for the property. Several of the interested restaurant operators were from around Michigan, and some prospective buyers were restaurateurs from out-of-state, Crossman said.

“Everybody I’ve talked with has said (Grand Haven) definitely needs a good restaurant downtown, so they are hoping someone opens that space on the main floor,”

Steelcase Inc. headquarters in Grand Rapids. | COURTESY PHOTO

100-102 Washington Ave. in downtown Grand Haven is under new ownership. | MARK SANCHEZ

Crossman said. “It’s in great shape on the first floor, and someone can come in and make it their own. It’s the center of everything, a pretty prime location.”

The building was constructed in 1872 and contains nearly 4,000 square feet of ground-floor commercial space and two upper floors with 11 apartments, which were 100% leased up when the building sold, Crossman said.

The building was constructed as a post office just five years after Grand Haven was incorporated as a city in 1867.

The ground floor of the building has been vacant since Copper Post closed on Jan. 1, 2024, after six years in operation in the space, according to reporting from MLive.

The closure was reportedly the re-

sult of a lease dispute between Allen and Copper Post’s owner, Doug Vanse. The space previously housed other bars and restaurants over the years, including the Green Mill Tavern, Rosebud Bar & Grill, Wooden Nickel, Grand Haven Brew House and HawkPeak Brewing.

“We had a very successful and thriving restaurant going at that location as the Copper Post,” Vanse told Crain’s Grand Rapids Business. “It is a historic location and I had no intent at leaving when or as we did.”

Vanse said he hopes to talk to the new owner about possibly reopening Copper Post in the location again. Doing business as Avenue Bistro LLC, Vanse still holds the liquor license at the space.

Steelcase sees advantage with plan to cut emissions

By Mark Sanchez

Steelcase Inc. wants to eliminate most of its carbon emissions over the next 26 years, an effort that executives call a “competitive advantage” that will help the company and its customers meet sustainability goals.

The Grand Rapids-based office furniture maker set out to cut carbon emissions 90% by 2050 under a net-zero transition plan rolled out in June during the NeoCon industry trade show in Chicago.

The 90% reduction will come “throughout our entire value chain,” President and CEO Sara Armbruster said during a recent conference call with brokerage analysts to discuss quarterly results.

Steelcase (NYSE: SCS) worked with Science Based Targets Initiative, a global collaborative that works with companies on climate targets, “to validate our near-term and new net-zero targets, and we are proud to be the first in our industry to publish a transition plan outlining our path to net zero,” Armbruster told analysts.

“We believe this new commitment will create a competitive advantage by helping our customers reach their own sustainability goals, and as a result, generate more opportunities to grow our business,” she said. “Many of our customers already have made net-zero commitments and we expect more will follow.”

The commitment builds on a goal that Steelcase established five years ago to cut carbon emissions in half by 2030. Achieving the new 90% reduction goal by 2050 “encompasses what we make, how we make it and the ways we deliver it,” Armbruster wrote in a letter in Steelcase’s new net-zero transition plan.

“This moment is a call to action,” the plan states. “Our work, together with our suppliers, customers and peers, is to help keep the global temperature from rising and work to reduce the impacts of climate change. Through the choices we make and the actions we take, we can go even further and build a more resilient future.”

Nearly two-thirds of the carbon

emissions reduction, the equivalent of 990,640 metric tons of carbon dioxide, will come through “choosing and using materials responsibly and designing for circularity,” according to a presentation accompanying the conference call with analysts.

Steelcase intends to partner with the suppliers that generate most of the company’s supplier-based carbon emissions “to set their own science-based targets by 2025,” the net-zero transition plan states. “Carbon emissions from purchased goods and transportation and distribution represent almost 70% of Steelcase’s total carbon footprint. Engaging with partners to set their own reduction targets benefits the entire value chain.”

The company will drive another 18% reduction by investing in energy efficiency, onsite solar energy, and reducing waste, according to the plan.

Steelcase in 2014 began to invest in renewable energy, and in 2016 signed a 12-year agreement to support production of 88 million kilowatts of clean energy annually.

The remaining 16% emissions cut will come through “transforming our distribution, delivery, travel and commuting practices to reduce carbon emissions.”

“We are at a moment of transformation for our business and the world we share. The reality of climate change demands that people and the planet are central to the choices we make to forge a more resilient future,” Armbruster wrote in the net-zero transition plan. “To meet the challenges of the climate crisis, we are leading with possibility, making bold choices and taking decisive action. Our aspiration is to transform the way we do business now and into the future.”

Steelcase on June 20 reported $727.3 million in sales for the first quarter of the 2025 fiscal year that ended May 24, a 3% decline from the same period a year earlier. Net income totaled $10.9 million, or 9 cents per diluted share. The company had a $764 million order backlog at the end of the quarter, which was 1% higher than the prior year.

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7/2/24 12:07 PM

Grand Rapids-based credit unions plan to merge

By Mark Sanchez

Two Grand Rapids-based credit unions plan to merge in a deal that would provide greater scale to manage rising costs and extend a broader array of financial services to members.

Bloom Credit Union and West Michigan Credit Union expect their merger to take effect by April 1, 2025. The deal would create a credit union with 11 branch locations and more than $450 million in total assets and 32,000 members.

Under the deal, Bloom would merge into West Michigan and become known as “Bloom Credit Union, a division of West Michigan Credit Union.”

“It’s really one of those scenarios where we were two credit unions that are comparably sized.

When we started looking at the credit union landscape and where things were going and the direction and mission of the two organizations, we felt pretty strongly that this is something where we could probably meet the need of the memberships better together than independently,” said Bloom Credit Union CEO Joe Heintskill, who will become chief executive of the merged credit union.

“We’re just going to have the op-

West Michigan Credit Union on Front Street in Grand Rapids. | MARK SANCHEZ

portunity to expand our products and service offerings to the memberships and provide them a better value at the same time,” Heintskill said.

William Keim, the current CEO of West Michigan Credit Union, would become president of the combined credit union after the deal closes.

Bloom Credit Union would benefit from the deal through West Michigan Credit Union’s “phenomenal” mortgage operation and consumer account offerings, Heintskill said. West Michigan Credit Union can gain from Bloom Credit Union’s commercial lending and business banking operations, he said.

“There’s some core competen-

Bloom Credit Union announced plans to merge with West Michigan Credit Union. | COURTESY PHOTO

cies from both organizations that we’re going to be able to leverage,” Heintskill said. “They have a lot of small business owners on the deposit side that I think are really going to benefit from those commercial services that we can provide.”

Bloom Credit Union has 13,460 members and operates two offices in Grand Rapids, plus one each in Wyoming, Georgetown Township and Coopersville. As of March 31, the credit union had $195.2 million total assets and $176.5 million in total deposits, according to a quarterly report to the National Credit Union Administration. The credit union also had $125.9 million in total loans, including $23.3 million in commercial loans.

West Michigan Credit Union has

offices in Grand Rapids, Big Rapids, Reed City, Cadillac and Manistee with 18,780 members. At the end of the first quarter, the credit union had $257.5 million in total assets and $207.6 million in total deposits, according to a quarterly financial report to federal regulators. Loans totaled $128.8 million, including just $489,824 in commercial loans.

“In a highly competitive financial services industry, combining our strengths would allow us to continue to enhance our products, service, and digital banking offerings.” Keim said in an announcement on the merger.

The deal is subject to approval by state and federal regulators and Bloom Credit Union members.

Wilary Wynn LLC served as financial adviser to both credit unions.

The merger is the latest in Michigan as the credit union industry continues a steady pace of consolidation that’s been occurring for years, mostly between smaller institutions. Most recently, Astera Credit Union in Lansing and Grand Rapids-based Adventure Credit Union proposed to merge, as Crain’s Grand Rapids Business previously reported.

Rising operating costs are a contributor to the deal between Bloom and West Michigan credit unions, Heintskill said.

“When you start thinking about compliance, I.T. costs, security costs, all these costs are just escalating all the time. A little bit of scale is nice to be able to have some additional resources to solve some of those issues,” he said.

At the end of April, Michigan had 121 state-chartered credit unions, four fewer than at the end of 2023, and down from 161 at the start of 2016, according to Michigan Department of Insurance and Financial Services data.

The number of state-chartered and federally chartered credit unions in the state totaled 192 at the end of 2023, compared to 235 in 2017, according to data from the Michigan Credit Union League.

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7/2/24 12:09 PM

Developer revives west side plan with more housing

By Kate Carlson

Grand Rapids-based Indigo Design + Development plans to increase the density of a mixed-use project the firm has been pursuing for years on the city’s west side.

The Grand Rapids Planning Commission approved a special land use in November 2021 for an earlier iteration of the site plan at 555 Leonard St. NW. Indigo Design expects the Grand Rapids Planning Commission to consider a special land use request for its updated plan at a meeting in August.

The goal is to break ground in early 2025 and complete the project in early 2026, said Ryan Schmidt, partner at Indigo Design + Development.

“This project was first dreamed of a number of years ago, but for a variety of reasons has never broken ground,” Schmidt said. “We’ve stuck with it and believe very strongly in this area and the building we’ve proposed.”

Site plans call for combining four parcels and constructing a new, four-story building with 28 studio and one-bedroom apartments and 2,000 square feet of

ground-floor commercial space. A 30-space surface parking lot would be located behind the building.

The main parcel in the proposed development was previously a gas station that has since been demolished. The Michigan Department of Environmental Quality, now known as the De-

zon Ave. NW contain vacant homes that would be demolished for the project.

Leonard Street Capital Partners LLC, which is registered to Long Road Distillers co-owner Kyle Van Strien, owns the four parcels where the project is proposed. Indigo Design plans to purchase the property as the project moves forward, Schmidt said.

Original project plans called for 20 apartments in a three-story building, with the ground floor serving as a tasting room and production area for The People’s Cider Co. The cidery is no longer involved in the project, so the first floor plans have shifted to include a small bike storage room, lobby, four apartment units and a 2,000-square-foot commercial suite being built speculatively.

“We’ve all seen the resurgence of Leonard Street, and there is a lot of very positive activity on that corridor, so we think that (retail suite) could be a restaurant or retail establishment,” Schmidt said. “Despite some setbacks along the way, it’s a site we

“We’ve all seen the resurgence of Leonard Street, and there is a lot of very positive activity on that corridor, so we think that (retail suite) could be a restaurant or retail establishment.”

— Ryan Schmidt, partner at Indigo Design + Development partment of Environment, Great Lakes and Energy, later remediated the site, which has primarily been used as a gravel parking lot for surrounding business. The properties at 1217 and 1221 Ge-

Indigo Design + Development is reviving plans for a mixed-use project on Leonard Street that calls for more housing, including units on the ground floor. | INDIGO DESIGN + DEVELOPMENT

really believe in and we love the location and the West Side business corridor.”

Rising construction costs and interest rates contributed to the delays for the project, Schmidt said. The city also amended its zoning ordinance since the first iteration of the plan was announced, making it possible to include some ground-floor residential units, Schmidt added.

The “need for housing” in the area also served as a driver for including an additional story with more apartment units in the plans, Schmidt said.

Indigo Design plans to apply for some housing incentives that will allow the company to reserve

some of the apartments for income-restricted rents, while the rest would be market rate, Schmidt said.

Indigo’s plan joins a wave of new projects on Leonard Street to the west of U.S. 131. Those include Pickle x Pin, an indoor golf simulator and pickleball project being constructed at 662 Leonard St. NW and DeVries Jewelry Store Inc. redeveloping the former Lanning’s Restaurant building into its new showroom at 433 Leonard St. NW. As well, a mixed-use housing development with 102 apartments, retail space and a restaurant would replace Johnny Brann’s Steakhouse & Grille at 401 Leonard St. NW.

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LEADERS IN COMMERCIAL REAL ESTATE Commercial real estate leaders are executives, developers, brokers, architects, planners and other professionals who provide high-quality services to the real estate and development industry by collaborating with others to produce significant projects in West Michigan. They advocate within their industry groups and local and state government, and they support their communities through volunteerism, mentorship and education.

Methodology: The honorees featured in this Notable Leaders in Commercial Real Estate report were nominated by their peers, companies or family members.

Crain’s Grand Rapids Business editors selected nominated honorees based on their career accomplishments, track record of success and contributions to their industry and community, as outlined in the detailed eligibility forms. Special Projects Editor Tim Gortsema, tim.gortsema@ crain.com, managed this report.

Bryan Bench

Shaun Biel

Commercial Manager, Partner Core Realty Partners

Director of Property Management Advantage Commercial Real Estate

Scope of work: Bryan Bench is a partner at Muskegon-based Core Realty Partners and manages the company’s commercial division.

His experience and expertise extend to the sale and leasing of all types of commercial properties, including office, retail, land and investment properties.

Biggest professional win: After beginning his career in commercial real estate in 2000 and spending more than 10 years in environmental consulting as it relates to due diligence for commercial and industrial property transfers, Bench earned his way to becoming partner at Core Realty Partners and later attained the same status at Core Development.

Other contributions: He is a former board member with Commercial Alliance of Realtors and coached football and basketball in Spring Lake.

Scope of work: Shaun Biel has more than 30 years of real estate experience in West Michigan.

Previous roles in private and corporate real estate give him experience in management and development of commercial buildings as well as helping advisers and clients identify and implement operational efficiencies that enhance value.

Biggest professional win: Biel helped start the property management division at Advantage and took it from 0 to more than 3 million square feet under management in a little over a year.

Other contributions: He is chair of the Monroe North Tax Increment Finance Authority, and a member of the advisory board for Downtown Grand Rapids Inc. and education committee for the Commercial Alliance of Realtors.

NOTEWORTHY Industrial strength National real estate research firm CoStar in March reported that the Grand Rapids region has the lowest industrial vacancy rate among the 50 largest industrial markets in the country.

According to the report, the region’s 2.5% industrial vacancy rate across 192 million square feet of inventory is the lowest among the 50 largest industrial markets in the U.S., and less than half the national average of 5.7%.

Anne Ficeli President Pure Real Estate Management Scope of work: Anne Ficeli’s approach to property management is to think like an owner, allowing her to align management strategies with long-term goals and financial interests of property owners to maximize return on investment.

Biggest professional win: A Certified Property Manager (CPM), Ficeli has more than 25 years of experience. She now leads a team of 17 professionals managing a portfolio valued at more than $300 million with more than 1.5 million square feet of assets.

Other contributions: She is active in Commercial Alliance of Realtors, Institute of Real Estate Management, Building Owners and Managers Association and Commercial Real Estate Women Network.

Building Excellence, Shaping Communities Your exceptional contributions to the development of West Michigan have been invaluable to our community.

Congratulations to Fishbeck’s Vice President and Senior Architect, Bill Rapson, on being named a notable leader in commercial real estate!

fishbeck.com | info@fishbeck.com

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NOTABLE LEADERS IN COMMERCIAL REAL ESTATE

Joe Giannola

Nathan Gillette

President and CEO Giannola Investments

President Natura Architectural Consulting

Scope of work: Revitalization of existing properties is the cornerstone of Joe Giannola’s business, which includes Giannola Investments and Giannola Construction Services. Giannola Construction works on projects ranging from funeral homes, restaurants, and schools to multimillion-dollar lakefront homes.

Biggest professional win: Giannola used his experience and expertise to promote the next generation of business owners in St. Joseph/Benton Harbor by expanding or creating new locations. Clients include Edit Studio, Slacker’s Family Fun Center, Lazy Ballerina Winery, The Shore Store and Royalton Foot & Ankle.

Other contributions: His community involvement is headlined by working with former President Jimmy Carter to build 24 Habitat for Humanity homes in Benton Harbor.

Scope of work: Nathan Gillette helps clients understand risks involved with real estate development, particularly in terms of building condition. Natura works with clients across the country on affordable housing and is a consultant for many national tax credit syndicators.

Biggest professional win: He has overseen more than $7 billion of new construction or redevelopment in his career, facilitating the construction or renovation of thousands of units of affordable housing.

Other contributions: Gillette is past president of the AIA Grand Rapids chapter, and a member or co-developer of several ASTM standards for property condition assessments, architectural document and cost reviews, and construction progress monitoring.

He has won multiple awards for historic preservation design.

NOTEWORTHY In person vs. online Various market reports show retail is stagnant in the region.

Data from the National Retail Federation compiled by Capital One show that millennials and Gen Z are much less wedded to in-person shopping, with Gen Z (37%) and millennials (38%) saying inperson shopping is their preferred method, compared to 51% for Gen X and 60% for baby boomers.

Max Grover

Nicole Hofert

Ku

Partner Moxie Real Estate + Development

Director of Community and Economic Development City of Wyoming

Par NAI

Scope of work: Max Grover, managing broker at Moxie, over the past 11 years has facilitated the sale and development of commercial real estate assets exceeding $140 million. Grover holds the Certified Commercial Investment Member (CCIM) designation and in 2024 was voted commercial realtor of the year by the Commercial Alliance of Realtors.

Biggest professional win: In 2021, Grover and colleagues Trevor Petroelje and Eric Finnigan launched Moxie, intending to disrupt the commercial brokerage and development landscape with innovative solutions. “Witnessing Moxie’s growth alongside our clients’ success is my fuel,” he said.

Other contributions: Grover has served on the boards of Commercial Alliance of Realtors West Michigan (past president), Cherry Health Foundation and All Seasons Living.

Scope of work: Nicole Hofert manages planning and development projects as well as several resident boards and commissions, including Wyoming’s Planning Commission and Brownfield Redevelopment Authority. Her expertise is in planning, economic development and navigating complex projects through various regulatory and funding approvals.

Biggest professional win: Hofert is the city’s lead for its new public marketplace, the redevelopment of Site 36, and efforts to create a new City Center. She and her team raised more than $38 million in grants and other funding to support community placemaking projects.

Other contributions: Since joining the city in 2018, she led the development of the new master plan, Wyoming [re]Imagined.

Congratulations

Shaun Biel

and all the Notable Real Estate Leaders

Shaun Biel

Director of Property Managmenet www.AdvantageCRE.com

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Kurt Kunst

Todd Leinberger

Partner, Executive Vice President NAI Wisinski of West Michigan

Partner, Vice President NAI Wisinski of West Michigan

Scope of work: Kurt Kunst specializes in the purchase and leasing of industrial and commercial properties and assists clients in analyzing build-to-suit options, and development and investment opportunities.

Biggest professional win: Kunst represented a buyer in the purchase of a 114,000-squarefoot former foundry in Sparta with major issues including massive pits in the floor, a rear wall falling in, caved ceilings and more. But Kunst said he saw a strong structure that could be a fine industrial space after renovation and worked with the client to realize the building’s potential.

Other contributions: Kunst and his wife are piloting a ministry called the JH Outback Grand Rapids, which focuses on building parent/child and husband/wife relationships.

Scope of work: Todd Leinberger has almost 20 years of business, finance and property management experience. His leasing activities include representing landlords to lease first- and second-generation spaces, as well as representing local, regional and national tenants.

Biggest professional win: Leinberger reached partner status faster than any other agent in NAI Wisinski’s history and in 2020 was recognized for the biggest retail sale in West Michigan.

Other contributions: Leinberger has been involved with the International Council of Shopping Centers and the Commercial Alliance of Realtors on a professional level, and has served the community through involvement with groups including AYA Youth Collective, Neighbors of Belknap Lookout, Inspire Sports Camps, GVSU/Belknap Master Plan and Safe Haven Ministries.

NOTEWORTHY Multifamily misstep Data from NAI Wisinski Great Lakes showed only 2,925 units of new multifamily housing under

construction in West Michigan during the second half of 2023, a 43% drop from the 5,212 units during the same period a year earlier.

Evan Mathison

Mike Mraz

Co-founder, Principal Mathison|Mathison Architects

President, Real Estate Development Rockford Construction

Scope of work: Returning to his native West Michigan a decade ago, Evan Mathison started the design firm with his father, growing it from a team of two to 20 designers and staff today and guiding the company’s transition to new leadership when his father retired.

Biggest professional win: Mathison’s greatest career achievement was the business transition from the original partnership with his father, Tom Mathison, to the leadership of his two new partners, Megan Feenstra Wall and Ben Franceschi.

Other contributions: Mathison serves on the Alumni Council for University of Michigan’s Taubman College of Architecture + Urban Planning and the board of directors for the Small Business Association of Michigan. He also helped form the STEM program at Forest Hills Public Schools.

Scope of work: As president of Rockford’s Real Estate Development team, Mike Mraz leads all aspects of the real estate development process including financing, acquisitions, leasing, project management, investor relations and owner’s representation. He oversees more than 3.5 million square feet of current developed space.

Biggest professional win: Mraz has been a catalyst for significant projects, including the original redevelopment of the Arena South District, Monroe Center and Grand Rapids’ west side.

Other contributions: He serves on the board at Junior Achievement of the Michigan Great Lakes and previously served on the boards of University of Michigan Health-West Foundation, Grand Rapids Area Chamber of Commerce and March of Dimes.

CONGRATULATIONS MIKE MRAZ 2024 Most Notable Commercial Real Estate Leader Rockford is proud to work alongside Mike and congratulations to all of the incredible leaders who were selected this year!

ROCKFORDCONSTRUCTION.COM

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NOTABLE LEADERS IN COMMERCIAL REAL ESTATE

Erin Peterson

Paula Priebe

Senior Real Estate Advisor Vision Real Estate Investment

Planning Director City of Walker

Scope of work: Erin Peterson plays a pivotal role in driving Vision Real Estate Investment’s strategies and transactions through her deep understanding of the market while negotiating deals, overseeing property transactions and maintaining strong client relationships.

Biggest professional win: Peterson said one of her more memorable achievements began during the COVID-19 pandemic when she helped a client locate and purchase a new location for a spa. After the previous tenant moved out and Peterson’s client made renovations, the vision for the Chasing Vanity Salon and Medi Spa finally came to fruition earlier this year.

Other contributions: Peterson is on the board of the Commercial Alliance of Realtors, which shapes West Michigan’s industry standards and best practices.

Scope of work: Paula Priebe guides residents, local businesses and developers through the planning and zoning processes in a community that’s currently experiencing significant growth.

Biggest professional win: Walker has experienced ongoing development in its Northridge Industrial Area, creating numerous manufacturing jobs. Additionally, the city welcomed the first residents to the new mixed-use housing development Savannah at Waterford Village, located at the former Lincoln Country Club.

Other contributions: She is a member of the American Institute of Certified Planners and the Michigan Association of Planning.

Priebe spent a year as a graduate student at the University for Peace in Costa Rica to understand the role of urban planning in peacebuilding for the purposes of sustainable redevelopment.

NOTEWORTHY Back to school County land banks in the region are using millions of dollars in recent state funding to prepare blighted properties for redevelopment,

including former schools that could be converted into housing. Of the more than $30 million in grants awarded by the Michigan Department of Labor and Economic Opportunity (LEO) this year, nearly half of the funds are supporting housing-related projects.

on being named one of Crain’s Grand Rapids Notable Leaders in Commercial Real Estate

WE CELEBRATE TOGETHER Detroit

12 | CRAIN’S GRAND RAPIDS BUSINESS | July 8, 2024

Grand Rapids Kalamazoo millerjohnson.com

Bill Rapson

Joe Rizqallah

Eri

Vice President, Senior Architect Fishbeck

Vice President, Principal Signature Associates

Me Mill

Scope of work: Joe Rizqallah has been working in commercial real estate for more than 15 years with a focus on retail, retail development and retail mixed-use projects. Some of his biggest deals include work with Art Van, Whole Foods, Drury Inn Hotels and the state of Michigan.

Biggest professional win: Rizqallah represented the tenant in securing a Grand Rapids location for Whole Foods, the No. 2 company on the Fortune 500 list, creating an array of new opportunities for Signature Associates.

Other contributions: He serves on the boards of Voice for the Badge, Eastown Community Association and West Michigan Regional Planning Commission (Region 8), and is on the Members & Forms Committee of the Commercial Alliance of Realtors.

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Scope of work: Bill Rapson leads the firm’s Building Sciences unit that provides investigative and design work to address issues with clients’ facilities. He is project manager for Grand Valley State University’s $80 million Blue Dot Lab, a role he previously filled for the school’s DeVos Center for Interprofessional Health and Finkelstein Hall.

Biggest professional win: Rapson led the business development strategy and was GVSU’s primary contact for the Blue Dot Lab. The higher education project will reinforce the region’s commitment to becoming a tech hub.

Other contributions: His work has supported the Grand Rapids Master Plan process. As well, Rapson is a former instructor at Grand Rapids Community College in the architectural technology program.

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Eric Starck

Bradley Thomas

Member Miller Johnson

President and CEO Progressive Companies

Scope of work: Eric Starck advises clients in all areas of real estate law, including the acquisition, construction, financing, leasing and disposition of real property, as well as zoning, land use, environmental compliance and environmental due diligence issues. Clients include corporations, developers, contractors, realtors, investors, school districts and municipalities.

Biggest professional win: Starck and Miller Johnson were instrumental in bringing the Studio Park development to life in downtown Grand Rapids. The multi-use attraction features a movie theater, hotel, housing, retail, restaurants and parking.

Other contributions: Starck is a member of the Education Committee for the Commercial Alliance on Realtors and past board president of the East Grand Rapids Schools Foundation.

Scope of work: runs all aspects of Progressive Companies and sets strategy for growth, including national reach, diversification, mergers and acquisitions, talent recruitment and client leadership.

During his tenure, Progressive added a presence in the southeastern United States and opened a Detroit office.

Biggest professional win: He led the early planning and framing of the cost-sharing partnership to relocate a 13-foot-diameter trunk sewer that had stymied riverfront development south of Fulton Street for decades, paving the way for Grand Action 2.0’s Acrisure Amphitheater and soccer stadium.

Other contributions: Thomas sits on the board and executive committee of the Grand Rapids Chamber and the executive committee of ONE Global Design, an international alliance of more than 1,600 design professionals.

NOTEWORTHY Office space Grand Rapids’ office market has had more leasing activity throughout the first quarter of 2024, with a total vacancy rate of 12.7%, down from a peak of 13.6% last year, according to JLL’s most recent market report.

Jan van der Woerd

Ryan Wheeler

Vice President ICCF Community Homes

President Wheeler Development Group

Scope of work: Jan van der Woerd is vice president of real estate development and management at ICCF, where he oversees teams in the areas of development, construction, property management and maintenance that are responsible for creating and sustaining affordable housing.

Biggest professional win: His most significant accomplishment is working with team members to create a new pathway for affordable homeownership called Community Homes Land Trust.

ICCF launched the program from concept to successful implementation. It is the first of its kind in Grand Rapids. “We built a new rung in the homeownership ladder, just as the GR housing market was becoming shockingly unattainable.”

Other contributions: He is a former elder at Sherman Street Christian Reformed Church

Scope of work: Ryan Wheeler has completed more than 20 successful projects, including multiple hotels and mixed-use office buildings, and more than 1,000 residential units. His expertise covers the entire development life cycle, from brokerage through development, construction and management, including municipal approvals, project underwriting, tax incentives and financing.

Biggest professional win: Wheeler was involved in the development of The Warner Building and Hyatt Place at 150 Ottawa Ave. NW in downtown Grand Rapids, calling it “the most challenging and rewarding project I’ve ever been a part of.”

Other contributions: He sits on the board of Uptown GR’s business improvement district and has helped raise funds for numerous natural resources and conservation-focused nonprofits.

The H.T. Hackney Co. Wyoming, MI

Design Build General Contracting Construction Management d a nvo s c o n s t r u c t i o n . c o m | 6 1 6 0 E . F u l t o n | A d a , M I | 6 1 6 . 6 7 6 . 9 1 6 9 |

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SPONSORED CONTENT

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Weathering financial uncertainty with a strong banking relationship Leveraging trusted banking partnerships to navigate economic challenges

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Joel Rahn is the Executive Vice President, Commercial Banking at Independent Bank. He has over 35 years of commercial banking experience in the West Michigan market. He is a graduate of Central Michigan University. An avid supporter of his local community, Joel currently serves as a National Board Member for Bethany Christian Services, and has held prior Board positions with The Right Place Program, Wedgewood Christian Services, and the Michigan Bankers Association.

here is certainly some uncertainty about where the economy is headed as we move into the second half of the year.

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Finding a financial institution to partner with you and your business on your financial journey is one of your business’s most important steps. steps. When evaluating your banking relationship, these are some key points to consider: • Stability – If your bank experiences financial stress, this may pose a problem for your business. A wise business owner stays updated on how

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banker, sharing not only your shortand long-term goals but also your business challenges. This allows your banker to provide sound financial advice based on the unique needs of your business, and to proactively anticipate future needs.

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Navigating the evolving landscape of commercial real estate Strategic solutions for commercial real estate challenges in West Michigan

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he commercial real estate market is experiencing significant transformation as we move through 2024. Experts in construction and commercial real estate are observing a slight slowdown in new projects and deal volume influenced by the rising cost of capital, inflationary pressure and a tight talent pool. With this changing market, commercial real estate developers must seek ways to mitigate the impact of market uncertainties and fluctuations.

ERIC STOLL Vice President of Commercial Services Advia Credit Union

Since joining Advia in 2017, Eric has played a pivotal role in advancing the growth and leadership of the commercial services and branch teams, including the successful integration of two commercial banks. During his tenure at Advia, the commercial loan portfolio has experienced strong growth at an annualized rate of 31.3%, expanding its footprint in the Northeastern Illinois and southeastern Wisconsin markets.

While there is still demand for high-quality Class A space, the lack of capital available for new office projects has increased interest in second-generation office spaces. This hesitancy to commit to new projects is reflected in the slight dip in newly signed design contracts in April 2024 (AIA). The office market also faces different challenges, primarily due to the shift to remote and hybrid work environments. Commercial real estate owners must adapt and optimize their capital structure by accessing alternative sources of funding or exploring refinancing options to

mitigate the impact of rising capital costs.

Advia Credit Union’s Commercial Services team offers guidance on financial strategies to enhance cash flow, manage capital and improve overall financial performance, which can be invaluable during turbulent times. “Advia’s ability to adapt and respond to complex industrial deals has been impressive,” said John Francis of Francis Realty (Grand Rapids, MI). “What stands out is my relationship with Chris: his faith in our projects, the advice he gives and his recommendations. Every deal takes a level of expertise. Each deal has its own nuances, and Advia has been able to see not only the basics of a particular deal but the overall vision.”

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CRAIN’S LIST LARGEST MANUFACTURERS IN MICHIGAN Ranked by 2023 revenue Company Address Phone; website MOTOR CO. 1 FORD Dearborn 48126

Top executive(s)

Revenue 2023/2022

Employees Jan. 2024 Michigan/ Worldwide

James Farley Jr. president, CEO and director

$176.2B $158.1B

Mary Barra chairman and CEO

Michigan plant locations

Type of Organization

47,750 e 177,000

Dearborn, Flat Rock, Wayne, Woodhaven, Romeo, Sterling Heights, Livonia, Ypsilanti

Automobile manufacturer

$171.8B $156.7B

50,316 163,000

Bay City, Brownstown Township, Detroit/Hamtramck, Flint (3), Grand Rapids, Lansing (2), and more

Automobile manufacturer

Carlos Tavares CEO

$95.5B 1 $91.2B 2

38,913 75,849

Detroit, Sterling Heights, Trenton, Warren, Dundee

Automobile manufacturer

Swamy Kotagiri CEO

$20.7B $18.9B

12,750 179,000

Mobility technology Alto, Auburn Hills, Battle Creek, Boyne City, Grand Haven, Highland Park, Holland, Holly, Kentwood, and more

Kevin Lobo chairman and CEO

$20.5B $18.4B

4,897 48,473

Kalamazoo, Portage

Medical technology company

Kevin Clark president, chairman and CEO

$20.1B $17.5B

DND DND

None 3

Automotive supplier

Marc Bitzer chairman and CEO

$19.5B $19.7B

4,015 e 59,000

None 4

Home appliance company

Jerome Dorlack president and CEO

$15.4B $14.1B

3,653 70,000

Detroit, Warren, Lansing, Battle Creek, Lakewood and Madison Heights

Automotive seating supplier

Frederic Lissalde president, CEO and director

$14.2B $12.6B

1,700 5 52,000 5

Cadillac, Livonia, Marshall

Manufacturing company of components and systems solutions for electric vehicles

Aruna Anand CEO

$12.2B 6 $11.5B 7

DND DND

Auburn Hills, Brimley, Dearborn, Rochester Hills, Troy

Automotive supplier

Seiji Maeda CEO, North America

$11.7B $11.3B

4,181 162,000

Battle Creek

Global mobility supplier

James Kamsickas chairman and CEO Timothy Kraus CFO

$10.6B 8 $10.2B

DND DND

Warren, St. Clair

Design and manufacture of propulsion and energy-management solutions for all mobility markets.

Keith Allman CEO, president and director

$8B $8.7B

DND DND

Ann Arbor, Adrian, Novi, Brownstown, Lapeer

Manufactures products for the home improvement and new-home construction markets

Milind Pant CEO Steve Van Andel, co- chairman Doug DeVos, co-chairman

$7.7B $8.1B

3,000 14,000

Ada

Entrepreneur-led health and wellbeing company

Matthew Missad chairman and CEO

$7.2B $9.6B

744 15,800

White Pigeon, Lansing, Spring Manufacturing Lake, Walker, Grand Rapids, Howell

Scott Turpin president and CEO

$7B $6.4B

311 120,000

No plants but seven Michigan facilities

Automotive components and systems supplier

$7B $6.7B 8

2,448 157,000

Fraser, Saline

Automotive supplier

$6.1B $5.8B

DND DND

Three Rivers, Auburn Hills, Fraser, Oxford, Royal Oak, Troy, Litchfield, Warren, and more

Automotive supplier

313-322-3000; ford.com MOTORS CO. 2 GENERAL Detroit 48265 313-667-1500; gm.com (FORMERLY FCA US LLC) 3 STELLANTIS Auburn Hills 48326 248-576-5741; stellantis.com INTERNATIONAL OF AMERICA INC. 4 MAGNA Troy 48098 248-631-1100; magna.com CORP. 5 STRYKER Portage 49002 269-385-2600; stryker.com PLC 6 APTIV Troy 48098 248-813-2000; aptiv.com CORP. 7 WHIRLPOOL Benton Harbor 49022 269-923-5000; whirlpoolcorp.com

8 ADIENT Plymouth 48170 734-254-5000; adient.com INC. 9 BORGWARNER Auburn Hills 48326 248-754-9200; borgwarner.com AUTOMOTIVE SYSTEMS U.S. INC. 10 CONTINENTAL Auburn Hills 48326 248-393-5300; continental-corporation.com/en-us INTERNATIONAL AMERICA INC. 11 DENSO Southfield 48086 248-350-7500; denso.com/us-ca/en INC. 12 DANA Novi 48377 419-887-3000; dana.com CORP. 13 MASCO Livonia 48152 313-274-7400; masco.com

14 AMWAY Ada 49355-0001 616-787-1000; amwayglobal.com INDUSTRIES INC. 15 UFP Grand Rapids 49525 616-364-6161; ufpi.com WORLD CORP. OF AMERICA 16 AISIN Northville 48168 734-453-5551; aisinworld.com

NORTH AMERICA (FORMERLY FAURECIA NORTH Thorsten Muschal 17 FORVIA executive vice president North AMERICA) 9

Auburn Hills 48326 248-724-5100; forvia.com AXLE AND MANUFACTURING HOLDINGS 18 AMERICAN INC. Detroit 48212 313-758-2000; aam.com

America and group sales and program management David Dauch chairman and CEO

Researched by Sonya D. Hill: shill@crain.com | This list of manufacturing companies is an approximate compilation of manufacturers with headquarters or substantial operations in Michigan. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. Actual revenue figures may vary. NA = not available. e. Crain's estimate. 1. North American revenue. The 2023 revenue is based on Dec. 31, 2023, euro to dollars rate of 1.1038. 2. North American revenue. The 2022 revenue is based on Dec. 31, 2022, euro to dollars rate of 1.0726. 3. Technical center located in Troy. 4. Corporate offices in Benton Harbor and Saint Joseph. 5. As of July 2023. 6. The 2023 revenue figures represent NAFTA sales of Continental AG, based on a Dec. 31, 2023, euro to dollars rate of 1.1038 . 7. The 2022 revenue figures represent NAFTA sales of Continental AG, based on a Dec. 31, 2022, euro to dollars rate of 1.0726 . 8. Automotive News. 9. After Faurecia's acquisition of a controlling stake in Hella, the combined company is now known as Forvia. Faurecia's acquisition of Hella was completed in February 2022.

16 | CRAIN’S GRAND RAPIDS BUSINESS | JULY 8, 2024

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Macatawa Bank’s offices in downtown Grand Rapids. | MARK SANCHEZ

More banks could be up for grabs in 2024

By Mark Sanchez

Macatawa Bank Corp.’s proposed $510.3 million merger into Rosemont, Ill.-based Wintrust Financial Corp. broke a relatively quiet period for bank M&A in Michigan.

Deals in the banking sector across the U.S. have been down the last two years, just as the overall M&A market has slowed as a result of high interest rates and economic uncertainty.

“They’re like any business in the M&A market, and generally, right now, it’s a soft market,” said Peter Lozicki, a partner at Grand Rapids-based Rhoades McKee P.C. “M&A in general has just been down.”

Prior to the Macatawa Bank and Wintrust Financial deal, the last significant bank merger affecting the Michigan market occurred more than three years ago when Columbus, Ohio-based Huntington Bancshares Inc. acquired Detroit-based TCF Financial Corp. in a $22 billion deal.

Holland-based Macatawa Bank (Nasdaq: MCBC) and Wintrust Financial (Nasdaq: WTFC) publicly announced the deal in April.

At the time, the merger was the third largest and the second-highest valued transaction since the start of 2023, according to S&P Global.

Under the terms of the definitive agreement, Macatawa Bank shareholders will receive $14.85 for each share of common stock they own. The deal allows Macatawa to continue to operate as a separate, state-chartered community bank under Wintrust Financial’s ownership with a local board of directors.

The acquisition is subject to approval by Macatawa Bank shareholders and other closing conditions and could close in the second half of this year. Macatawa Bank shareholders will vote on the merger proposal July 31.

In the months leading up to the Macatawa and Wintrust deal, bank M&A had been relatively quiet in the Michigan market with just a handful of transactions involving small institutions. The only deal in 2023 listed in a monthly report by state regulators was Old Mission Bank in Sault Ste. Marie selling its assets to 4Front Credit Union in Traverse City.

In the prior year, only one deal closed in Michigan involving

Thumb Bancorp Inc. in Pigeon and Exchange State Bank Corp. in Carsonville, two small community banks in the Thumb area. That deal gained regulatory approval in October 2022 and closed just before the end of 2022.

One potential buyer now is Evansville, Ind.-based Old National Bank, which is actively seeking an acquisition to grow in Michigan, CEO Jim Ryan told Crain’s Grand Rapids Business in an interview in late May. Specifically, Old National would like to make a deal that increases the bank’s presence in the Grand Rapids, Kalamazoo and Detroit markets, Ryan said.

Old National has 23 offices in Michigan with about $1.9 billion in deposits. Across a seven-state Midwest footprint, the bank operates 260 offices with $49.5 billion in total assets and $37.6 billion in total deposits, as of the end of the first quarter.

A potential barrier that Old National and other prospective buyers face as they scout for deals in Michigan is the lack of good acquisition targets, said Michael Bell, a partner Honigman LLP who leads the firm’s financial institutions practice group and specializes in transaction that involve credit unions buying community banks.

“There just aren’t that many banks left. There will be deals, but there are only so many banks around,” Bell said. “I think there are some great targets in Michigan, but they have to decide to sell, and when they do, they’ll get scooped up.”

The soft period for bank M&A has been changing nationally in 2024, Bell said. He now gets inquiries daily from banks seeking to divest branch offices.

Activity has picked up so much that Honigman nationally is on a record pace for transactions in 2024. After handling just three deals last year for bank branches, the firm has completed six so far in 2024 and has more than 20 “on my plate” today, Bell said. In the past, a busy year for branch transactions typically involved four or five deals for the firm, he added.

Bell attributes this year’s strong uptick in activity to pent-up demand after banks delayed potential deals coming out of the pandemic, and because of rising interest rates and economic uncertainty of the last two years.

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Rockford Brewing scraps nearby pizza pub concept

By Abby Poirier

Rockford Brewing Co. LLC has scrapped plans for the Malph’s Pizza Pub restaurant and distillery concept in downtown Rockford and intends to lease the renovated building to a new proprietor.

Co-founder Seth Rivard said the partners invested $1.2 million into renovating the former Vitale’s location at 40 E. Bridge St. NW in downtown Rockford, but have moved away from opening another restaurant and bar, citing inflation, rising material costs and labor shortages.

“A lot of companies like mine started struggling with getting labor and having to pay more for it, and the really talented people, which rightfully so, were able to get any job they want, moved up in the world,” Rivard said.

The 1866 building had been destined to house Malph’s Pizza Pub, which included a restaurant and space to allow the company to expand into distilling.

Rivard was among a group of investors, including other Rockford Brewing employees, who bought the building in 2020 for $385,000.

The team worked with Grand Rapids-based Kozak Construction

“I think he did a better job than anybody could have done,” Todd said, adding that the building is “a really unique opportunity, it’s in a great location, very visible. I think it fits really well where the (Rockford) market’s going.”

While Rivard believes the original Malph’s concept “would really work there,” he decided to pull the plug on the project two years ago.

The process also included working with donors to an $18,000 Kickstarter campaign to refund their money or fulfill their rewards with Rockford Brewing merchandise or vouchers.

Staff members who invested with him in purchasing the property have either remained on board with the project as investors or have had — Seth Rivard, co-founder at Rockford Brewing Company their shares purchased, Rivard said.

Crews were able to save the origiRivard said.

Doug Todd, senior commercial nal old-growth ceiling in the buildadviser at Grand Rapids-based La- ing. Credit: Courtesy photo Despite walking away from their cuna Group, has the listing.

He said that while common logic original concept, the investors see may have been to tear the building the potential in the historic space, down, Rivard was “thoughtful” in he said.

“If restaurants can start getting restoring the structure.

LLC to save the original foundation of the building, repair the walls, put on an addition, and refresh the restaurant’s facade. Rivard also saved the building’s original ceiling. The renovations also included adding a patio and 655-square-foot rooftop deck.

Currently, the space is empty and ready for a tenant to put their personal touch on the buildout.

“I don’t want to continue any construction until we know exactly what’s going into (the building),”

“At the end of the day, I’m very proud that I was able to save this building, and I think it looks beautiful, and I think it’s ready for the next step.”

The owners of Rockford Brewing Co. have paused plans to open Malph’s Pizza Pub at the former Vitale’s location at 40 E. Bridge St. NW in downtown Rockford and instead have shifted their focus to finding a new tenant for the building. | COURTESY PHOTO

their costs down a little bit again, I think that a restaurant in there that has a little bit of a niche but definitely caters toward comfort food and has a full liquor license would do absolutely great there,” Rivard said.

With a shift away from the Malph’s concept, Rivard is leaning into real estate ownership by investing in his company, Plain Rock Properties, which acquires and leases residential, commercial and industrial buildings.

“At the end of the day, I’m very proud that I was able to save this building, and I think it looks beautiful, and I think it’s ready for the

next step,” he said. “I’ve just got to be realistic with myself. I’ve been sitting there holding it like, ‘Someday, I’ll get Malph’s ready again,’ and I just have to let go.”

While Rivard believes a restaurant would work well in the space, he said he’s “keeping options open” when looking at potential tenants, noting that he’s had plenty of interest in the building.

“I want to cherry-pick what goes in there,” he said. “I’m not just going to give it to the first person, I’m going to look for what I consider as the best fit for the building, for the town, for the community, and for me as a landlord.”

Former Ada General Store returns with new restaurant

By Abby Poirier

The 165-year-old little red building formerly home to Ada Village General Store is making a comeback this summer with a new name, fully remodeled interior, covered back patio and new menu.

Ada Village General Store, located at 78430 River St. SE, has been renamed O’Briens Schoolhouse and is operated by the owners of O’Briens Deli and Burgers. It was scheduled to reopen July 1.

O’Briens Schoolhouse will cater to hungry kids, offering candy, freshly scooped ice cream, a range of handheld sandwiches and burgers, and more.

For adults, the restaurant portion of the building has a full liquor license and will serve a range of signature cocktails, wine and four taps with a rotating selection of local beers.

owner TJ O’Brien. “We want to keep what the families in the town want, so that’s where we’re headed.”

O’Briens Schoolhouse is just the latest iteration for what is known affectionately as Ada’s “Little Red Schoolhouse.”

The 888-square-foot building was originally built in 1859, and was home to the Carl School, Ada Township’s District 3 schoolhouse.

It was located then on the corner of Carl Drive NE and Grand River Drive NE. It served as a one-room schoolhouse for 105 years, until it became obsolete after the consolidation of Forest Hills schools in 1964.

It stood vacant until it was purchased in 1971 and relocated onto the banks of the Thornapple River, where it served as the Little Red Schoolhouse Ice Cream Shop, and later as a flower shop in 2003.

In 2017, Cheri DeVos, owner and founder of commercial real estate management company Baton Collective, purchased the schoolhouse.

Baton Collective renovated and restored the building, reopening it in 2018 as Ada Village General Store.

“It was a landmark that meant a lot to her family,” said Sam Nichols, director of business operations for Baton Collective. “They wanted to make sure it added a prominent, and also useful, component to the entire Ada Village.”

The general store sold ice cream

“We want to keep what the families in the town want, so that’s where we’re headed.”

— TJ O’Brien , O’Briens Deli owner While the former general store will be a second location for O’Briens Deli, which currently operates at 1200 E. Paris Ave. SE in Grand Rapids Township, owners aim to be a family friendly staple in downtown Ada. “We’re not trying to change things up,” said O’Briens Deli

The owners of O’Briens Deli and Burgers will now operate the former Ada Village General Store as O’Briens Schoolhouse. | COURTESY PHOTO

cones, sundaes, shakes, malts, coffee and other drinks, along with hot dogs, donuts, penny candy and other sweet treats.

In November 2023, Ada Village General Store announced it would be closing to build out a new concept in the space, which would include the addition of a restaurant.

The new concept was a reflection of the new look and feel of Ada Village, as new additions — like a Baton Collective-led 36room, three-story hotel — revitalize the town.

“It’s starting to really come together,” Nichols said. “(With) all of the different businesses that are

coming into place and the way that the park is being utilized in a significant way, we thought it was a good time to make sure that there’s more offerings down here.

Specifically, we immediately thought of TJ and O’Briens because of the connection to the Ada community and because of how much they already work with businesses down here.”

The opening of O’Briens Schoolhouse is also a personal one for TJ O’Brien, who grew up in Ada and frequented the Little Red Schoolhouse for ice cream as a child.

“There was a dirt road you drove down and there was a back porch

that had creaky stairs that you walked up on,” O’Brien said. “You went in and there was the ice cream shop. (It had) no air conditioning.”

O’Brien’s family also operated O’Briens Market and Deli, located at 6650 E. Fulton St., which operated for 37 years until it closed in 2017. The space is now home to Vitale’s Pizza of Ada. The new O’Briens Schoolhouse was renovated over the winter and spring and has fresh floors, a reconfigured space to allow indoor seating for guests and new interior design with some rustic nods to the building’s history. Baton Collective also added a new covered outdoor patio with seating for 50 guests.

Altogether, the new restaurant will have total capacity for nearly 70 guests, indoors and out. Guests will also be able to place orders online and receive a text message when their food is ready, skipping a hot wait in line during summer months.

O’Briens Schoolhouse will be open year-round and will be staffed by 20 to 25 full- and parttime employees.

Most importantly, O’Brien, who has children of his own, said the restaurant, located adjacent to Ada’s Legacy Park playground, is “100% about kids.”

“If they want to ride their bikes down (here), this is a safe haven,” he said. “(They can) buy candy, get a soda, get a basket of fries. … The parents come after.”

18 | CRAIN’S GRAND RAPIDS BUSINESS | July 8, 2024

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Trinity Health pushes for alignment of lakeshore hospitals

By Mark Sanchez

More than a year and a half after acquiring the former North Ottawa Community Health System in Grand Haven, Trinity Health now wants to create closer connections between its three lakeshore hospitals.

The health system aims to drive greater operational and clinical cohesiveness among its hospitals in Muskegon, Grand Haven in northwest Ottawa County, and Shelby to the north in Oceana County.

“The idea is to really pull together the lakeshore — Grand Haven, Shelby, Muskegon — and integrate where we can,” Trinity Health Muskegon President Gary Allore told Crain’s Grand Rapids Business. “The first step was just to get Grand Haven integrated into Trinity Health as an organization, and I think this is just kind of a next natural step to trying to better integrate along the lakeshore.”

That next step follows the May retirement of longtime president Shelleye Yaklin at what’s now known as Trinity Health Grand Haven and accelerates a process that was already underway prior to her departure.

After Yaklin’s retirement, Allore added president of the Grand Ha-

Allore

Foss

ven hospital to his duties. John Foss, the senior vice president of operations for Trinity Health’s Shelby Hospital, assumed leadership for day-to-day operations at both the Grand Haven and Shelby hospitals.

The drive for greater lakeshore integration won’t involve making any branding changes “at this time,” Allore said.

“We’re going to think of ourselves more as ‘Trinity Health lakeshore,’” he said. “(But) we’ll be Trinity Health Grand Haven, Trinity Health Muskegon, and Trinity Health Shelby.”

Since acquiring the 81-bed Grand Haven hospital in October 2022, Trinity Health has worked to extend more medical specialties into the market from Muskegon and has shared administrative functions such as human resources and finance, Allore said.

Through deeper integration, Trinity Health wants to drive

greater administrative efficiency and enhance clinical continuity between the three lakeshore hospitals, especially in sharing medical specialists such as cardiology, pulmonology, gastroenterology, infectious disease, and palliative care. That alleviates the need for people in each market to travel elsewhere to see the medical specialist they need.

“When people come to a hospital, in their mind, this is where they want to be. If we can provide them the service locally, that’s in their best interest,” Foss said. “Leveraging the fact that we have now three hospitals along the lakeshore, we can get some of those specialists to maybe come down there for a day, maybe use telehealth, so that we can keep that person who has a GI complication, a cardiac complication, a pulmonary complication, because we have the specialist available both in Shelby and in Grand Haven to keep those patients local.”

In other clinical functions, the group that covers the emergency department in Muskegon now staffs Grand Haven’s ER. Trinity Health also wants to extend the hospitalist group in Muskegon that provides basic care to patients while in a hospital to Grand Haven.

Trinity Health’s Muskegon hospital campus on Sherman Boulevard. | COURTESY PHOTO

Grand Haven will soon go through the process of earning certification as a stroke center, a move that will ensure the hospital follows the same care protocols as its peers for stroke care and will generate greater continuity in care.

Likely within the next 18 months, the Grand Haven hospital will eventually adopt the same electronic medical records plat-

form, EPIC, that Trinity Health uses at its other facilities.

Since the 2022 acquisition, Trinity Health has secured state regulatory approval and plans to open a 42-bed, long-term acute care unit at the Grand Haven hospital, and in January opened a detox service there for adult patients with withdrawal symptoms from alcohol and drug addictions who voluntarily self-refer.

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Snack food manufacturer Cheeze Kurls LLC, based in Walker, has sold to Los Angeles private equity firm Nexus Capital Management, whose portfolio includes the likes of floral retailer FTD and Dollar Shave Club. | ANDY BALASKOVITZ

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A popular Walker-based snack food manufacturer has changed hands for the second time in four years.

Walker-based Cheeze Kurls LLC, which produces a line of its own snack products and serves as a contract manufacturer for other brands, has been acquired

by Nexus Capital Management LP, a private equity firm headquartered in Los Angeles, according to a statement.

The seller in the deal was Kilroy Partners, a Boca Raton, Fla.based private equity firm that first acquired the business in 2020.

Cheeze Kurls CEO Jamie Colbourne called the transition “a milestone” for the longtime Grand Rapids-area snack foods brand.

Terms of the deal were not disclosed.

“CK has built a leading position in the snack food industry due to our ability to consistently produce innovative and high-quality products for our customers.”

— Jamie Colbourne, CEO, Cheeze Kurls

LMCU.org/Commerciallending 20 | CRAIN’S GRAND RAPIDS BUSINESS | July 8, 2024

said in an announcement on the deal that the Cheeze Kurls brand aligned with the firm’s “extensive experience investing in food and beverage,” making the company a good fit for its portfolio. Nexus also owns national brands such as floral retailer FTD, Natural Balance pet food, wellness brand Sugarbear, footwear brand Toms and Dollar Shave Club.

“We look forward to supporting the company in its next phase of growth,” Flesh said in a statement.

Flesh noted that CK Snacks’ Colbourne has served as an operating adviser to Nexus “for many years.”

“CK has built a leading position in the snack food industry due to our ability to consistently produce innovative and high-quality products for our customers,” Colbourne said in a statement. “I want to thank our employees, customers and vendor partners for helping us reach this milestone in the company’s history.”

Baker & McKenzie LLP advised Nexus on the deal, while Foley & Lardner LLP served as legal adviser for CK Snacks.

Cheeze Kurls manufactures from a 132,000-square-foot facility on Walkent Drive north of Three Mile in Walker.

The brand was founded in 1964 by Edward DeDinas and Robert Franzak, and was purchased by their sons, Timothy Dedinas and Robert Franzak in 1999. The younger generation maintained minority ownership in the sale to Kilroy Partners.

CK Snacks operates as a contract manufacturer, producing a range of extruded, fried and baked snack products for other food companies, while also creating snacks under its own Cheeze Kurls brand. The company also makes popcorn and party mixes.

Nexus partner Daniel Flesh

AI is looming opportunity — and threat — for manufacturers

By Andy Balaskovitz

Artificial intelligence is both a potential growth driver and a source of stress for West Michigan manufacturing executives who are tapped into automation and the latest innovations of Industry 4.0.

Speaking at a Crain’s Grand Rapids Business Power Breakfast on advanced manufacturing, executives and investors in West Michigan manufacturing companies said AI is bringing rapid change to an industry already under a major technological transformation.

The June 20 Industry 4.0: Manufacturing Automation panel featured: w Jason Byrd, managing partner of local investment firm Concurrence Holdings LLC w Mark Ermatinger, general manager of Zeeland Township-based automation distributor Industrial Control Service Inc. w Scot Lindemann, CEO of Holland Township-based manufacturer and integrator Mission Design and Automation LLC w Kelly Springer, president and CEO of longtime Holland Township-based stamping company Metal Flow Corp.

“I see AI coming up fast, really fast,” said Ermatinger, noting advancements in the way operators can interact with their machines and train AI to analyze and predict

From left: Crain’s Grand Rapids Business Editor Joe Boomgaard; Kelly Springer of Metal Flow; Scot Lindemann of Mission Design and Automation; Mark Ermatinger of Industrial Control Service; and Jason Byrd of Concurrence Holdings. | JUSTIN RAZMUS, 616 MEDIA

CEO of JR Automation, while Byrd was a vice president at Huizenga Group, which owned JR Automation from 1995 to 2015.

Ermatinger said West Michigan

alone has more than 225 custom machine builders serving a variety of industries. While the sector has historically focused on the automotive industry, “that’s changing

very quickly.

“There’s competition, but at the same time we’re raising the whole bar and becoming a hotbed,” Lindemann said.

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million in revenue, which never was in their purview historically. I would say (it’s about) being able to manage that data and then also being able to build firewalls around your information so we don’t end up in the headlines.”

Springer and Ermatinger both said data security ranks among the top concerns keeping them awake at night as executives. Springer said she’s had “at least 100 phone calls” asking to pay a cyber attack ransom with bitcoin.

“How do we make sure we’re constantly training and protecting all of this investment we’ve made?” she said. “That’s outside of our core competency. You have to partner with the right partners.”

“It’s very disruptive,” Ermatinger said. “(AI) is being used everywhere in the plant. I’m curious to see where it goes. It’s a little scary: The last thing I want is for technology to disrupt someone’s business.”

For the executives, best practices for AI use and data protection include backstopping I.T. departments with outside experts who can “stay ahead of the curve” on new tech developments, Springer said.

Ermatinger added that being able to lock down systems while also allowing remote access to network infrastructure to quickly identify problems is key.

In addition to embracing the latest in technology, panel members shared best practices for addressing ongoing talent and workforce development needs.

“The shortage isn’t going to get any better,” Byrd said.

“There’s a lot of new investment in West Michigan, and this is going to be a meaningful, meaningful issue.”

Lindemann places a premium on new machinery that younger generations want to work with, keeping workers trained and engaged, and taking advantage of public funding for workforce development, such as the state’s Going PRO Talent Fund that gives grants to employers to train new workers and upskill existing employees.

Springer, who said Metal Flow is seeking nearly $220,000 in Going PRO funding this year, said the company had a workforce shortage prior to the pandemic. She said being intentional and transparent with employees about the company’s shift to automation was important to avoiding a “rumor mill” about whether jobs would be in jeopardy.

“We tried to get way ahead of it by just being completely transparent with what our timeline looks like and where we were going next,” Springer said. “It’s changed the dynamic of our workforce.”

Indeed, West Michigan is poised for more advanced manufacturing investments, in part because it’s the birthplace of one of the giants in Industry 4.0, JR Automation. The Holland-based company that was acquired by Hitachi Ltd. in 2019 for $1.42 billion has led to numerous spinoffs from former employees.

The ties also included the panelists: Lindemann formerly served as

“(AI) is being used everywhere in the plant.

I’m curious to see where it goes. It’s a little scary: The last thing I want is for technology to disrupt someone’s business.”

— Mark Ermatinger, general manager of Zeeland Township-based automation distributor Industrial Control Service Inc. a certain machine’s performance.

Springer and others said platforms like ChatGPT are helping machine operators use data quickly and enabling them to rapidly get information to decision makers.

“One of the trends you see is to get the data into the people’s eyes who are directly making decisions — how you gather that data and how you analyze it,” Lindemann said.

That then puts a premium on “building the right team,” Springer said, and collaborating with similarly minded companies in the region.

“Attracting the right people with the right capabilities and empowering them to utilize that” becomes imperative, she said. “It is the ability to access data anywhere in the world that allows us to continue to grow in West Michigan.”

However, the ability to gather and understand data using AI goes beyond operations to also protecting that information from bad actors, Byrd said.

“Being able to handle the data is a big deal, but then also keeping it secure,” he said. “(Hackers) are absolutely happy trying to break into a company with $5 million to $10

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July 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 21

Another riverfront office building sits nearly half-empty

By Kate Carlson

The owner of a riverfront office building that lost two long-term tenants earlier this year remains optimistic about backfilling the space and staying in good standing with his lender — a much different scenario than is playing out at a nearby riverfront high rise.

A tale of two office buildings is emerging between the locally owned Riverfront Plaza and Bridgewater Place, where a California-based property investment firm recently defaulted on a loan after its main tenant moved out and left more than a third of the building vacant.

Riverfront Plaza sits nearly half vacant after losing two long-term office tenants, Northwestern Mutual and Crowe LLP, at the beginning of 2024. Northwestern Mutual and Crowe LLP combined occupied about 50,000 square feet in Riverfront Plaza. Northwestern Mutual relocated earlier this year to a roughly 26,000-square-foot renovated space in Bridgewater Place.

Despite Riverfront Plaza’s 48% vacancy rate, building co-owner Bill Mast, who also serves as the president of Visser Brothers Inc., says the owners are in good standing with their lender.

One of the building’s tenants, Cornerstone Trust, is expanding its footprint, while letters of intent have been signed by two prospective tenants, Mast added.

Riverfront Plaza at 55 Campau Ave. NW. | KATE CARLSON

“We’re happy to lease to quality tenants who want their offices on the river with a financially stable landlord,” Mast told Crain’s Grand Rapids Business. “We were diligent in paying down our debt aggressively in part of the last decade and reset our payments.”

The vacancies in the 142,195-square-foot Riverfront Plaza are high-end class A space with windows overlooking the river and onsite parking for customers.

The listing agent for Riverfront Plaza, located at 55 Campau Ave. NW, said backfilling space with new tenants has mostly remained steady, albeit slower.

“When people give space back, for the most part, we’ve been able to backfill it, but we’re not backfilling it as quickly as we were a year

ago,” said Chip Bowling, senior adviser and principal at Bradley Co. While Bridgewater Place earlier this year gained Northwestern Mutual, it also lost its second-biggest tenant in Corewell Health, which is consolidating its office employees at a new building in the city’s Monroe North neighborhood. The building owner of Bridgewater Place, Hertz Investment Group, defaulted on a $37.3 million loan for the office tower after its lender demanded a $1.52 million cash deposit following Corewell’s exit.

Hertz Investment Group marked the most recent high-profile office loan default in Grand Rapids as real estate experts raise broader concerns about large office delinquencies in the coming year. The Federal Reserve Bank of Kansas

City expects that default rates could reach nearly 25% for the largest office properties with more than 500,000 square feet, based on a sample of loans from the fourth quarter of 2023.

Locally, Grand Rapids’ downtown and core business district continues to experience elevated vacancy rates compared to other parts of the city and the suburbs.

However, JLL noted in its most recent market report for the first quarter of 2024 that Grand Rapids’ office vacancy rate is “among the lowest in the nation,” and positive absorption is the best in two years.

The moves of Crowe and Northwestern Mutual exemplify how companies are shifting their office strategy in response to worker preference.

Crowe had been based at Riverfront Plaza since the firm established a Grand Rapids location in 1984. The company moved on Jan. 1 to the Drueke Building at 605 Seward Ave. NW, when tech firm Vervint, which was previously known as OST, relocated into the nearby American Seating Park.

The roughly 29,000-square-foot Drueke Building is about the same square footage as Crowe’s previous space in Riverfront Plaza. However, the Drueke Building has more amenities, including a 12-person bar and rooftop, plenty of parking, “usable space,” and opportunities to draw younger talent from a recruiting perspective, said Travis

Ward, the managing partner of the CPA firm’s Grand Rapids office.

“We’ve seen a very large increase in people choosing to be in the office,” Ward said. “I attribute that to all the amenities in the building, and it’s easy to get to on the west side, with ample free parking.”

Crowe has a “work from where you want” policy for its 250 employees, Ward said, adding that the difficulty of parking downtown was becoming a deterrent for many of its younger employees.

“Especially earlier in their careers, it’s most important to have those employees in the office for that human contact as we strive to build a culture,” he said.

Crowe’s management team was nervous to make the move, but has found that the new location makes more sense in the post-COVID business environment, according to Ward.

“We benefited from just thinking a little differently and thinking about what the west side has to offer,” he said.

As well, Northwestern Mutual left its 27,000-square-foot offices at Riverfront Plaza and moved its team in March to a similarly sized footprint on the 12th floor of Bridgewater Place. Joe Dierks, managing partner at Northwestern Mutual, told Crain’s in July 2023 that the move allowed for more flexibility for their hybrid work environment and room for potential growth.

Public Restaurant returns to downtown Zeeland

By Abby Poirier

Public Restaurant reopened in its former downtown Zeeland space after a three-year hiatus.

Restaurateur Lucas Grill reopened Public on June 25 at 131 E. Main Ave. in Zeeland. The 1,700-square-foot restaurant, which originally opened in 2012, features an updated menu and freshly renovated interior.

The reopening comes three years after Public’s abrupt closure in 2021, when Moxy Dental, the building’s former owner and fellow tenant, announced plans to expand its practice into the space, according to prior reports.

Grill said the closure came as a personal blow.

“The last night (it was open) I was there with my family. We had a nice dinner and I actually cried walking down the street to my car.

It was very emotional,” he said.

“When I opened Public, I had no kids, and I was not married yet, and fast-forward 10 years, I had a wife and four kids. So much happened in my life in that time and Public grew with me, personally and professionally.”

Zeeland later denied Moxy’s request to operate in the building, as an extension of the dental office didn’t fit with city’s zoning, which called for retail or a restaurant business to occupy the space.

When a new buyer came along

and expressed interest in purchasing the building, Grill reached out and proposed reopening Public Restaurant in the space.

According to property records, Northpoint Partners LLC purchased the building in 2023 for $930,000.

After the purchase, Public Restaurant was back in business.

Grill said the three-year closure, while a difficult time, gave him space to step back and reevaluate the restaurant, find its strengths and weaknesses and bring the concept back better.

While refreshing and updating the restaurant before reopening was an important step, Grill said it also posed its share of challenges.

“When you start a brand-new concept, no one has any idea of who you are, what you do, what your cuisine is, what flavors you have. There’s no preconceived connotation of who you are and what you do,” he said.

But reviving a well-loved concept, he said, is a bit trickier.

“When you (reopen), if it’s too similar to the old restaurant, then people are going to say, ‘It’s not as cute as it used to be, or the food is more expensive, or this dish used to be creamier.’ But if you don’t keep enough of the familiarity, they say, ‘Why didn’t you bring Public back? Public was amazing.” You have to thread the needle,” he said.

With that in mind, the new Pub-

Public Restaurant in Zeeland, which reopened June 25, features a refreshed menu with more of a focus on lighter options, as opposed to the comfort food it had offered before abruptly closing in 2021. | COURTESY PHOTO

lic Restaurant will offer a fresh menu and look that updates the concept, while offering customers some callbacks to the previous establishment.

While its signature brick walls and high ceilings will remain, the new Public Restaurant has been fully redesigned. Working with Forest Hills-based Lynn Hollander Design to update the restaurant, Grill said the space has a new color scheme, fresh woodwork, cabinets, countertops, wallpaper and furniture.

“It’s all brand new,” he said.

To help the restaurant feel like it used to, Grill deliberately placed tables in the same formation as they were at the old Public, and made sure to replace tables with similar sizes to keep the layout familiar.

“The silver lining of closing was I was able to take a step back and say, ‘Luke, if you could change (Public), what would you change?’

So we’re able to kind of lean into a new design aesthetic that I think will really cater to everyone that loved our restaurant.”

Grill also revamped the menu to reflect what customers are looking for in 2024 as opposed to 2012.

While some favorites will remain on the menu, Public Restaurant has shifted away from heavier comfort foods like mac and cheese and pot pie to focus more on lighter options, Grill said.

Public’s new lunch menu features a range of salads, burgers and sandwiches, while the dinner menu includes a flat-iron steak, Mongolian beef with rice and ma-

ple glazed pork chops.

“If you want to come here and the meatloaf or the parmesan crusted chicken cutlet (are) the things that you wanted and you love, they’re still there,” Grill said.

“But there’s so much new, fun stuff in the menu that I think is more representative of the changing demographics because things are different 10-plus years later.”

Grill also has been successful in bringing back all but five of Public’s original employees. He credits that to his strong emphasis on putting his employees first, including keeping his restaurant closed on Sunday and Monday to give employees some time off.

The restaurant will seat 54 guests for lunch service from 11 a.m.-4 p.m. Tuesday through Friday and offer dinner service from 4-9 p.m.

Tuesday through Saturday.

Public, Grill’s first business venture, was the start of what would become 1983 Restaurants LLC, a four-business portfolio that includes Public; Poquito, a tapas restaurant in Holland; Obstacle No.1, a Holland cocktail bar; and Seventy-Six, a new American restaurant also located in Holland.

“I felt like the band’s back together in terms of my company,” he said, adding that, “Public’s kind of like the heart and sol of 1983 Restaurants. I feel like we’re getting our beating heart of the company back, which is great.”

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Work continues to convert the former Harmony Hall space on Bridge Street into a new concept, Rapid River Stillhouse, which owners expect will open this fall. Shown is the second-floor dining area. | COURTESY PHOTO

New Bridge Street bar drops Nashvilleinspired theme

By Abby Poirier

Months before its anticipated opening this fall, moonshine distillery Sip Shine’s flagship bar and restaurant has a new name, as the company retools its concept and branding.

Sip Shine LLC, a West Michigan moonshine and canned cocktail company, has rebranded as Rapid River Beverage Co. The bar and restaurant that will occupy the former Harmony Hall location at 401 Stocking Ave. NW will be known as Rapid River Stillhouse.

Rapid River CEO Nick Rice said the new name “makes a lot more sense” for the Grand Rapids-based company.

“It excites us to have the ability, with the (new) name and brand, to be able to tie into Grand Rapids, because we do have a lot of passion for this place,” Rice said. “We want to be successful in our own backyard, and we think this is the perfect opportunity for that.”

The new vision for Rapid River evolved alongside a fresh concept for the yet-to-open taproom, Rice said. While the rebranding will retain the important elements of Sip Shine’s original vision for the Bridge Street space, Rice said “the small things” have changed to better reflect the west side.

“We obviously learned a lot, tearing apart an old building and putting it back together,” Rice said. “We feel like the general concept, look and feel is all very similar, if not the same, to what the original concept was.”

While the original bar and restaurant focused on daily live music, with TVs throughout the taproom showing live streams of the artists on stage, Rapid River Stillhouse will now include sports and focus less on live music.

“We felt just as we started coming up and down Bridge Street and just really taking in what Grand Rapids has, while that (original concept) would be very cool, do we have the people to support that?” Rice said. “You’re not getting tens of thousands of tourists here every day. (Customers are) all the people that work and live right here in our community.”

Original plans called for a firstfloor private dining room and a

tasting room alongside a retail space selling pre-packaged spirits.

The second floor would feature a bar with a small stage featuring free, daily live performances of mainly country music, while the rooftop deck would feature ambient music, seating and a bar.

While the first-floor retail space will remain, the rest of the space will be used to seat customers for quick lunches and serve as a cocktail bar. The second floor will offer a second bar, with a formal dining area, complemented by TVs to show live sports. The second floor will also feature a full stage with an LED video wall to play music videos or sports.

The first and second floor will seat between 300 and 375 people, while the rooftop deck will seat around 80, according to Rice’s estimates.

Rice said the original concept, which was based on Tennessee’s music and moonshine scene, needed to flex to fit Grand Rapids’ restaurant scene.

“We’re trying to face the fact that Grand Rapids, unfortunately, is not Gatlinburg or Nashville,” Rice said. “We’ve got a lot of people that want to come in for lunch or to-go cocktails and all these other things, including maybe watching sports.

What we did is we took this concept and made it very, very flexible. We can still have live music as much as people want.”

The menu, while still in production, will be Southern-inspired, with “a little bit of everything,” Rice said, noting that the restaurant will have an industrial smoker on site with a capacity to handle 500 pounds of meat at a time. In addition to classic Southern favorites like collard greens, Rapid River Stillhouse also expects to offer steaks, chicken and burgers.

In addition to retooling its Bridge Street taproom, Rapid River also is shifting its distilling focus from moonshine to a range of other spirits. While the Sip Shine lineup of nationally distributed moonshine-based canned cocktails will continue to be produced and marketed under the Sip Shine name, the creation of the Rapid River Beverage Co. brand will allow the company to broaden its portfolio.

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July 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 23

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Construction firm plans 8-unit condo project in East Hills

By Rachel Watson

Local developers are proposing a condominium project that would offer a total of eight units for sale at a location adjacent to one of Grand Rapids’ smallest parks.

An affiliate of Grand Rapids-based Construction Simplified proposes to build four duplex condo buildings on a small triangular parcel at 638 E. Fulton St. at the corner of Lake Drive in the East Hills neighborhood.

Brent Gibson, founding partner and president of Construction Simplified, Austin Kettlewell, construction and real estate development partner for the firm, and Kettlewell’s father, Mike Kettlewell, acquired the property for $275,000 in January. The seller in the deal was Mike VanGessel, CEO of Rockford Construction.

The buyers have been working on a plan for the site since February, Austin Kettlewell told Crain’s Grand Rapids Business. They will go before the Grand Rapids City Planning Commission on July 11 seeking special land use approval to build multifamily dwellings on the site. That use is allowed with planning commission approval in this property’s

zoning district of Traditional Neighborhood-Low Density Residential.

The nearly 0.4-acre parcel is directly southeast of 0.1-acre Baldwin Park, one of six pocket parks of 0.2 acres or fewer in the city of Grand Rapids. The land was donated to the city in 1908 in memory of an early European settler, Simeon L. Baldwin. Each spring, daffodils bloom in the park, which is at the nexus of three neighborhoods — East Hills, Midtown and Heritage Hill.

Kettlewell said that he loves this corner of East Hills because it is in “the heart of Grand Rapids’ traditional architecture and bold charm.”

He added that the partners felt these condos represented “the right kind of housing” in a neighborhood with a lot of aging rental housing stock.

“East Hills, it’s so charming, but there’s so many houses that need (maintenance), with some of them rentals that have been around forever,” Kettlewell said. “I think it’ll be great for that area, to regenerate growth.”

Pending city approvals, the partners hope to break ground on the condos later this year, with presales likely beginning by the end of 2024. The condo units are tenta-

tively expected to be marketed in the $500,000-$600,000 range, Kettlewell said.

The condos would be a mix of two- and three-bedroom units.

Each building would be three stories tall, with a two-car garage on the base level and two levels of living space above, according to documents filed with the city.

The units would range from about 1,800 to 2,300 square feet apiece. They would be side-by-side duplexes with three levels each, consisting of a mudroom adjacent to the base-floor garage, living areas and half-bathrooms on the second level, and bedrooms and full bathrooms on the third story.

Plans call for adding a private drive off Fulton Street, on either side of which would be a condo building. The remaining two structures would be behind those buildings, facing Lake Drive. About 30% of the site, including the inner area between buildings, will be reserved as green space. Baldwin Park will remain untouched.

Construction Simplified attended East Hills and Midtown neighborhood meetings to gather ideas for the design and configuration of the buildings, Kettlewell said. So

Construction Simplified is proposing a four duplex project that will offer eight condominium units for sale near the corner of Fulton Street and Lake Drive. | ANDY BALASKOVITZ

far, the firm has been unsuccessful in setting up a time to meet with the Heritage Hill Neighborhood Association but would like to do so soon, he added.

Kettlewell said the team incorporated the feedback gathered so far to produce attractive traditional designs with front porches, window trims and roof lines consistent with the surrounding structures.

Building heights also will be at similar elevations as the surrounding homes and below the maximum allowable height of 35 feet, according to the project narrative.

Materials and aesthetics would be “elevated from builder grade” to maintain the “charm and character

of the neighborhood,” according to the firm’s application.

“We wanted to not just put in forrent units in there; we wanted it to fit in the neighborhood and community,” Kettlewell said. “Sort of the challenge with this was getting the design accurate, as it’s a triangle-shaped lot that slopes almost 9 feet from one side to the other, and we’re trying to get parking off the street (in response to neighbor input).”

The partners hired Grand Rapids-based Moore & Bruggink as consulting engineer for the project to help with plotting elevations and planning for the addition of water and sanitary services, storm sewers and landscaping on the site.

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24 | CRAIN’S GRAND RAPIDS BUSINESS | July 8, 2024

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The Connable Office has been based in the American National Bank building in downtown Kalamazoo for decades. | MICKEY CIOKAJLO

Wealth management firm acquires Kalamazoo multifamily office

By Andy Balaskovitz

A multifamily office with deep roots and legacy in Kalamazoo has been acquired by a large Chicago-based wealth management firm in a deal that executives say will benefit both companies.

Executives with Cresset Asset Management recently announced a deal to acquire The Connable Office, which dates back to the early 1890s. The company, organized as a private trust company, was once run by Al Connable Jr., who played an outsized role in Kalamazoo’s growth in the mid- Melvin 20th century when he also served as a University of Michigan board regent.

“The office really tells some of the history of the greater Southwest Michigan area,” said Connable Office President James Melvin, who has worked at the firm since 1992. The Connable Office is one of the oldest multifamily offices in the country.

Al Connable Jr., known as the “Michigan Man,” marked the fourth generation of the Peck-Connable family who had previously settled in Southwest Michigan. Established as a single-family office, the firm reorganized as a private trust company as the family grew with later generations.

“The office in those early 1900s was investing in almost anything that was started here in Kalamazoo,” Melvin said, citing as an example Kalamazoo Savings Bank, which eventually became American National Bank. The Connable Office for decades has been located in the American National Bank art deco tower in downtown Kalamazoo.

The Connable Office now oversees the assets of the seventh generation of the Peck-Connable family.

In recent years, Melvin and other executives have worked to

modernize the firm’s investments and “make sure our estate and trust plans keep up with the needs” of the ever-growing family tree, Melvin said.

The firm also added outsider families to its portfolio in recent decades to now total more than 30 families. The Connable Office brought about $1.6 billion in assets to the deal with Cresset, which has been on a recent acquisition spree since its formation in 2017 by a pair of private equity competitors, Crain’s Chicago Business reported. The deal grew Cresset’s assets under management to $52 billion. A year ago, Cresset had about $30 billion of assets under management.

Terms of the deal were undisclosed. Republic Capital Group served as financial adviser and Alston & Bird LLP served as legal counsel to Connable.

The Connable Office employs 38 people, while Cresset employs about 470 people across the country.

In joining with Cresset, which primarily serves first and second generations, Melvin said The Connable Office brings experience with several generations and matches the direction Cresset executives want to go.

“That’s where Cresset and The Connable Office align,” Melvin said. “We have the ethos and vision to be around another 100 years.”

Cresset executives called the deal a strong cultural fit that also gives Connable Office clients access to a fuller suite of financial services.

“Cresset and Connable together are an outstanding cultural fit.

We are the powerful combination of a firm with a 100-plusyear legacy and one that has been built for the next 100 years,” Cresset co-founder and co-chairman Eric Baker said in an announcement of the deal.

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COMMENTARY

What we’re looking for in guest column submissions

O

pinion is everywhere these days.

Anyone with a social media account can simply let it rip, and it seems many do. Or at least it feels that way at times.

In many ways, we are so awash in opinion that seeing someone else’s point of view in a sea of words seems to have diminished in value. Certainly, it’s harder to get attention these days, unless you say something really outlandish.

I firmly believe that our value at Crain’s lies in our reporting — finding and sharing important and interesting stories, information and data that help our readers make better decisions and connections.

The vast majority of the content we publish reflects this — straight news stories about vital Mickey industries and people Ciokajlo is executive editor doing business.

But we still publish an of Crain’s Detroit Business Opinion page, both in print and online. And and Crain’s on that page you will Grand Rapids regularly see pieces by Business. fellow business and community leaders.

The guest columns we publish couldn’t be further from the social media hot takes I referred to above.

For one, they are well-informed. Informed opinion still has a lot of value in my book. While I primarily consume news, I appreciate hearing the perspective of a person who is an expert on an important issue that is in the news.

We typically publish at least one guest

column per week in Crain’s Detroit Business. At Crain’s Grand Rapids Business, where we publish in print every other week, we usually run two guest columns per issue.

We get a fair number of submissions in both markets, but we are always interested in hearing from all corners of our readership.

Submissions of guest columns are handled by Managing Editor Michael Lee in Detroit and Special Projects Editor Tim Gortsema in Grand Rapids.

Lee sent me criteria for what he looks for in evaluating submissions, which are useful guidelines for both markets. Here they are: w First of all, it has to be a topic of interest to our audience; specifically, an audience of metro Detroit or Grand Rapids and Michi-

gan businesspeople and those who are interested in business. w The column should take a position on a matter of public debate. There’s no need to state an opinion that nearly everyone agrees with. w Columns can’t be primarily self-promotional. They should keep the bragging and horn-tooting about the author’s own business or organization to an absolute minimum, though it’s certainly fine to identify those affiliations, especially as a way of establishing expertise. w We’re generally not interested in columns focused on partisan electoral politics. There are plenty of outlets for that kind of “red meat.” We’re not one of them and aim to publish substantive debate on differences of policy, rather than party affiliation.

w We also generally don’t run columns offering business advice. w Columns should range from 400 to 750 words. We ask for a high-resolution photo of the author.

An example of a recently published guest column is one by Adrienne Goodstal, president of Mel Trotter Ministries, urging leaders to consider the economic impact of human investment.

At Crain’s we will strive to keep delivering high-quality news and information every day. But we also want to hear from you on issues of interest to business leaders.

In Detroit, pitch your ideas to Michael Lee at malee@crain.com, while in Grand Rapids you can send them to Tim Gortsema at tim.gortsema@crain.com.

We look forward to hearing from you.

COMMENTARY

Small steps can lead to big progress in mental health

I

While May has been designatn America today, approxied as Mental Health Awareness mately one out of five AmeriMonth since 1949, we would be cans is suffering with a mental better served to all year reflect health issue; and approximately and act on addressing the stigma one in 25 adults is experiencing a preventing individuals from getserious mental illness that subting the care they need. stantially interferes with one or The good news is that there is more major life activities. Left unhope and resources for recovery. addressed, the negative impact Today, positive outcomes are not will increase.

Dr. Michael only possible, they are experiThe time to act is now. As CEO Nanzer, DPT, of Forest View Hospital, my staff FACHE, is chief enced every day. Like chronic and I have the privilege of serving executive officer physical illness, mental illness can be diagnosed and effectively many members of our communi- of Forest View managed. Individuals who were ty who are experiencing some of Hospital. once in despair can go on to live the most challenging times of their lives — mental illnesses that are of- their best lives. This is highly rewarding ten invisible to the casual observer in ways and one of many reasons I chose to work that physical illnesses are not. As a behav- in this field.

In addition, at the end of April 2024, our ioral health industry, we must build capacity to serve the need by attracting new nation witnessed a historic achievement providers, expanding our workforce, in- regarding suicide prevention. The 2024 vesting in prevention and reducing barri- National Strategy for Suicide Prevention was published alongside the first-of-itsers to care.

kind Federal Action Plan, which makes the strategy more impactful. The Federal Action Plan directed by The White House places accountability for progress at various departments including the Centers for Disease Control and Prevention, Department of Defense, Veterans Administration, Substance Abuse and Mental Health Services Administration, Department of Health and Human Services and others. We look forward to achieving meaningful advancements in suicide prevention under this strategy.

What else can we do within our communities to recognize the signs of mental health challenges and assist those in need of care and treatment?

Listen and show understanding: If you suspect a loved one is struggling, encourage them to seek professional help.

Share the Crisis Response number 988, a 24/7, free and confidential text, chat, talk support line. Military veterans may press “1” for dedicated support. Learn about im-

plementation of the 988 crisis line in your community this summer.

In case of acute emergency, dial 911 or go to the nearest emergency room. Suicide is often preventable when people at risk receive the support that they need.

Our schools should encourage students to pursue careers in mental health fields, whether through nursing, medical or vo-

Today, positive outcomes are not only possible, they are experienced every day. cational programs. We need to inspire the next generation of talented professionals.

Working together, we can improve the lives of Americans suffering with mental health concerns, not just during this month, but every month in every community across the country. Mental wellness starts here.

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

26 | CRAIN’S GRAND RAPIDS BUSINESS | July 8, 2024

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7/2/24 11:22 AM

Advertising Section

COMPANIES / PEOPLE ON THE MOVE To place your listing, visit https://www.crainsgrandrapids.com/ people-on-the-move/ or contact Debora Stein at (917) 226-5470 / dstein@crain.com

In addition to selling fresh mushrooms, Mycophile’s Garden also produces growing kits, as well as dried mushroom jerky and tinctures. | COURTESY PHOTO

MUSHROOMS

ble, Swinson anticipates being able to grow close to 2,000 pounds a week.

From Page 1 “When I started, I was (growshiitake, chestnut, maitake and ing) mostly by myself,” Swinson said, noting that the business, other mushroom varieties.

“It’s been a real struggle to get which he operates full-time, now to this point,” Swinson said. “I’ve has five full- and part-time emhad a bunch of help from a ployees. “Five years ago, I was bunch of friends. In the last four selling a couple hundred pounds years, my partner really helped a week, and it’s been a huge exus get over the hump of making pansion. With the existing cusenough and growing enough that tomers that we have, things just keep on growing, which has been we can afford to expand.”

Swinson has started the pro- really great.”

In recent years and particularcess to transform the new 3,000-square-foot warehouse ly since the pandemic, mushspace, located on his brother-in- rooms have been undergoing a law’s property in Saranac, into a renaissance in the U.S., growth that has buoyed small-scale promushroom-growing operation.

So far, it’s been a complicated ducers like Mycophile’s Garden.

According to a 2023 report by undertaking that’s included installing air conditioning, humid- The Mushroom Council, a U.S. ification and temperature con- organization of mushroom protrol systems to maintain the cool, ducers, mushroom retail sales humid conditions that mush- increased by 20% to $1.268 bilrooms need to thrive. As well, lion in the 10-year period ending Swinson has added ventilation in 2023.

While specialty mushrooms, like those Mycophile’s Garden produces, remain a small portion of overall sales, their share in the market increased by 71% during that same time.

Swinson attributes some of Mycophile’s Garden’s growth to an increase in consumer — Chris Swinson, co-founder Mycophile’s Garden interest in knowing where food is grown systems to keep fresh air flowing and buying local.

At the same time, Swinson bethrough space, which is kept at between 85% and 90% humidity. lieves customers have become Mushrooms grown for culi- more health-conscious and more nary purposes, like Swinson’s, likely to invest in the health beneneed a highly controlled, sterile fits of mushrooms. Swinson cites a environment, in addition to the 2019 podcast interview between proper temperature and humidi- Joe Rogan and American mycologist Paul Stamets that made mushty levels.

Currently, Mycophile’s Garden rooms “really blow up.”

“People were asking us about produces between 500 and 600 pounds of mushrooms weekly. lion’s mane after they heard Within the next year or two, once about it because of Joe Rogan or the new growing space is opera- they saw clips of the episode on-

“Five years ago, I was selling a couple hundred pounds a week, and it’s been a huge expansion. With the existing customers that we have, things just keep on growing, which has been really great.”

line,” he said. “Around the same time, there was a documentary called Fantastic Fungi that was released (on Netflix that) was also very popular. We still get a lot of people who learn about us because they saw that movie and they started looking for mushroom farms online.”

Swinson said lion’s mane remains a best seller for his business.

In addition to selling fresh mushrooms, Mycophile’s Garden also produces growing kits, as well as dried mushroom jerky and tinctures under Michigan’s cottage food law. However, the company plans to boost production with the addition of a commercial kitchen at its second facility, a leased 1,000-square-foot space at 720 Curve St. SW in Grand Rapids’ Black Hills neighborhood where Swinson packages mushrooms.

Swinson hopes the 500-squarefoot commercial kitchen he is building in the space will be operable by the end of the year.

Once fully licensed, he’ll be able to sell dried mushrooms, mushroom soup mixes and other products via local retailers.

The team at Mycophile’s Garden has handled the construction for both projects so far.

Swinson estimates that he will invest around $30,000 combined for the expansion projects.

When the new growing facility is online, Swinson intends to work on increasing Mycophile’s Garden’s footprint with local retailers, with an eye toward reaching more Meijer stores.

Swinson feels like he’s “come full circle” with his business, from buying a mushroom growing kit and getting hooked, to now selling them to others.

“It’s fun to introduce people to new things, especially when they end up loving them,” he said. “All around, it’s just more interesting than growing any other type of produce I could think of.”

BANKING & FINANCE

ENGINEERING

Mercantile Bank

Spalding DeDecker

Mercantile Bank, Michigan’s largest community bank, is pleased to announce Raymond E. Reitsma as President and Chief Executive Officer. In this role, Mr. Reitsma will continue to lead growth and build upon his 20 years with the bank, including expertise in commercial lending, cash management, operations, and risk management. With a commitment to building strong relationships, Ray’s dynamic and influential leadership has over time contributed to the bank’s growth to $5.5 billion in assets.

Spalding DeDecker has hired Rebecca Page, PE as a Senior Project Manager in their Grand Rapids office. Ms. Page brings more than 24 years of expertise and is recognized for her credible and diverse land development experience throughout West Michigan. Her expertise in local land development includes municipal and agency permitting processes, stormwater management design, site grading and earthworks balancing, construction engineering, sanitary and septic system design, and watermain design.

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NONPROFITS

The YMCA of Greater Grand Rapids

The Beacon Hill Foundation

The YMCA of Greater Grand Rapids is thrilled to announce the appointment of Sara Mooney as chief advancement officer (CAO). Mooney joins the Y with more than 15 years of experience in communications and fundraising. As CAO, she will oversee all fundraising and marketing efforts. “We are delighted to welcome Sara to our team,” said Scott Lewis, President/CEO of the Y. “Her passion for community service and her proven track record in advancement make her the perfect fit for this role.”

The Beacon Hill Foundation has named Libby Crabb Wahlstrom as its new executive director.

Wahlstrom joins with more than 18 years of experience in nonprofit fundraising, development strategy and event planning. Prior to the Foundation, she was the development director for Literacy Center of West Michigan, where she directed and led all fundraising efforts and served as a literacy tutor. Wahlstrom serves on the board of the West Michigan Chapter of the Association of Fundraising Professionals.

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WALKER From Page 1

officials felt the pause would allow the city to update its zoning ordinance and amend its 2020 master plan before approving any more multifamily projects.

At the time, the planning commission was considering three significant projects: JAG Development and The Cherette Group’s Vista 45 mixed-use project; Jade Pig Ventures’ River Ridge Townhouses plan for the former Greenridge golf course; and RJM Properties’ proposal for rental townhomes at Lake Michigan Drive and Maynard Avenue NW. All three projects, which drew strong opposition from neighbors and lengthy debates among planning commission members, were paused under the moratorium.

The city commission approved a rezoning in support of RJM’s project on June 24, citing its compliance with master plan goals, including transit-oriented development.

Coming out of the moratorium, though, city officials and housing advocates are still wrestling over differing ideas about development.

SLIGH From Page 1

steps on this valuable asset for the community.”

The developers have asked the court to dismiss the case and reject Huntington’s calls to appoint a receiver for the properties and start the foreclosure process.

The developers also claim in the response that they worked with

BAMF From Page 3

well as other partners that are seeking to come to Detroit,” Bassett told Crain’s. “We’re open to all locations and the right partners, but nothing has been finalized yet. There are a number of sites.”

This year’s $5 million from the budget, which awaits Gov. Gretchen Whitmer’s signature, is on top of $20 million lawmakers appropriated for the Detroit project in last year’s budget.

BAMF Health has been working with Detroit Mayor Mike Duggan’s office and the Detroit Economic Growth Corp. to select a location for a clinic that would join the Grand Rapids theranostics center that opened nearly two years ago on Michigan State University’s downtown research campus. At the time, BAMF executives expressed an interest in expanding into Detroit.

BAMF’s Grand Rapids clinic diagnoses and treats patients with stage four prostate cancer and neuroendocrine cancers using advanced high-speed medical scanners, radiopharmaceuticals and artificial intelligence to precisely target tumors with minimal side effects.

Merits of a project While Carey characterized a sense of fatigue over dense, multifamily projects, other city officials say Walker is now taking a more measured approach.

City Commissioner and Mayor Pro Tem Steven Gilbert acknowledged “multifamily fatigue” by some, but he said the city paused dense housing development to clarify its housing policies. Gilbert was elected to the city commission in 2017 and served on the planning commission from 2015 to 2023.

“We do have to be conscientious about how we’re developing and how we maintain that balance (of single-family and multifamily),” he said. “I think that (multifamily fatigue) exists among some of the residents, but as an elected official, as someone who served on the planning commission for a long time, our role is to evaluate the merit of the project as it relates to what we have in our master plan and the criteria that we’ve put in the zoning ordinance.”

For a long time, he said, that was difficult to do. While the city created a new master plan in 2020, it could have been clearer, he said.

“I think that the work that we did to update the master plan was really important, because a big part of the friction that we had with the devel-

opers is not in the pushback that we get from residents … . From our perspective, we have to think: What are the long-range goals for the city, what is the future of each property?

What are the opportunities that we can provide for people? What is the right that the developers have to the property that they own?”

The revised master plan is now drafted with changes that Carey said represent relatively minor “tweaks” to clarify the city’s priorities. The city hopes to vote on the amendments this fall, he added.

A summary in the draft version highlights that the amendments do the following: w Define the term “net density” and confirm the city will use it to calculate the allowable housing density on a property. w Update a “significant undeveloped lots” map to reflect existing development and new development priorities since 2020. w Identify locations for the addition of “gentle density” through rezoning to an A-2 District. w Redesignate the future land use and community character of areas appropriate for new duplex development. w Create a new RPUD-3 zoning tool to allow for higher-density housing development, with a focus on quality of life in those new developments. w Re-evaluate the West Standale

area, creating a detailed vision for a mixed-density, mixed-use neighborhood on that site.

Carey said he believes the new document will bring clarity to how the city will use its abundance of shovel-ready land. According to Carey, city staff members are spending “the lion’s share” of their day fielding interest from developers.

“The demand for multifamily and single family are actually both there, but what we are hearing is there’s a higher demand for the single-family homes,” he said. “That’s what we’re trying to encourage the developers to bring forward.”

Carey claimed that more multifamily housing will create a greater reliance on revenues from the city’s 1% income tax on residents and 0.5% income tax on non-residents, and that the city could generate more property tax revenue by pushing single-family homes. Carey also claims that multifamily developments place greater strain on public services without the accompanying tax revenue.

Anna Carey, volunteer executive director for the Strong Towns GR group that advocates for more housing in West Michigan, said she is dubious of Carey’s claim that market demand has shifted to single-family.

She said in her experience, the people who show up to public meetings and object to multifamily developments tend to be those who “have owned a home for several years.”

Secondly, the region is struggling with housing affordability. While “homeownership is a nice, lofty goal,” it’s not attainable for a wide swath of the market, she said.

“People already are strapped,” Carley said. “They can’t really try and get that mortgage for whatever the going rate is currently, and then valuations of the houses are just over inflated at this point in the market. It’s kind of an almost unapproachable goal for a lot of people.”

From Gilbert’s perspective, the moratorium and master plan updates were not about shifting the balance away from multifamily development, but more about clarifying guidelines for development.

“I think we just want to see the sites developed more intentionally to align with the goals that we’ve laid out,” he said. “We’re not against multifamily development. I think that there are some who are a little exhausted with the volume of multifamily development. My perspective is: That’s not our charge as a city to evaluate whether people can live in multifamily developments.

It’s whether the project before us fits the criteria that we’ve laid out.”

Huntington Bank to modify “applicable contracts and/or waived certain rights and duties under the applicable contracts verbally, in writing, and/or through a clear course of conduct such that the defendants are not in default as alleged in the complaint.”

JV SBAM SA LLC is owned by two limited liability companies that are based in Michigan and Delaware, according to court documents.

Gibbs is among five members of

the Michigan-based company that owns a 24.12% stake in the entity that received the loan from Huntington.

Golden Glades Grand Rapids Opportunity Fund LLC, a Delaware company affiliated with New York City-based Golden Glades Capital Management, holds a 75.88% membership interest, court records show.

Sturgeon Bay Partners unveiled development plans in May 2021

for the Sligh building and adjacent properties located just south of downtown Grand Rapids. The centerpiece of the project has focused on repurposing the hulking former furniture factory at 211 Logan St. SW into hundreds of apartments and retail space. The 650,000-square-foot structure dates back to 1880.

Huntington Bank’s lawsuit does not name the address of the former Sligh Furniture building at 211 Lo-

gan, which Gibbs’ development group purchased on Feb. 15, 2022, under a covenant deed.

The owners owe more than $96,000 in delinquent 2023 taxes for 211 Logan, according to property records. Kent County in March began the forfeiture and foreclosure process on the property over roughly $6,600 in delinquent taxes from 2022. The development team resolved the 2022 delinquent taxes on June 26.

In Grand Rapids, BAMF partners with Corewell Health and MSU, the latter of which is developing a $335 million Health Sciences Research Center in Detroit through a partnership with Henry Ford Health.

The process to select a partner in Detroit remains “an open table,” although “there’s one that’s closer than others,” Bassett said. The company will likely select a single partner for the Detroit clinic, he added.

BAMF Health wants to establish a Detroit clinic “in the most optimal location so that we can be a resource to as many health systems as possible and as many of the schools in the area as possible,” Bassett said. The clinic would also need a location to readily serve patients who may cross the border from Canada for treatment, and that could leverage Detroit Metro Airport for patients who may travel there from distances, he said.

BAMF’s Grand Rapids clinic has treated patients from more than 30 states and four other countries.

“We believe there will be an even bigger opportunity for international travel for health care when we’re located in better proximity to Detroit Metro Airport as well,” Bassett said.

BAMF Health is looking at several models for a Detroit partnership, in-

cluding a joint venture where a partner “brings equity to the table or the ability to pledge assets as well,” or commits patient referrals, he said.

“We’re working in a variety of ways to look at what’s the best model to help as many patients as soon as possible,” said Bassett, adding that whoever BAMF Health chooses to work with in Detroit “comes down to patient access.”

“It’s imperative for us to partner with someone with the same mindset that we can move this precision medicine forward,” he said.

Legislators appropriated the $5 million for BAMF Health as an earmark in the new state budget they completed June 27 for the state’s 2025 fiscal year that starts Oct.1.

The earmark combines with $20 million that lawmakers and Whitmer appropriated a year ago in the FY 2024 budget for a Detroit theranostics clinic. The additional funding originated with the office of state House Speaker Joe Tate, a Democrat from Detroit, with support from the governor and Senate Majority Leader Winnie Brinks, a Grand Rapids Democrat.

“Michigan — and specifically my community of Grand Rapids — is a leader in the health care space for good reason,” Brinks said in an

emailed statement. “In addition to providing access to world-class care, we also have a vision for the future of medicine. The team at BAMF develops lifesaving medical technologies and cancer therapies, and I’m proud to help more people get state-of-the-art health care.”

Bassett explained that the political support for the funding results from a need to address health disparities and increase access to a modern-day form of molecular, precision medicine. As well, the state sees BAMF Health’s work as helping to make Michigan attractive to pharmaceutical companies developing advanced treatments for disease.

“Our infrastructure is enabling additional investments in Michigan,” Bassett said. “There are several major pharmaceutical companies that are looking to come to Michigan and continue their development of radiopharmaceutical assets, and they needed to have this infrastructure in place on order for that to happen.”

BAMF Health hopes to begin treating patients in Detroit via small-scale clinical trials within 18 months in a temporary “mini” clinic with a partner, and to open a permanent clinic location in early 2027, Bassett said.

“We will help get patients access as soon as possible,” he said. “We have methods to do that with the partners we’re working on, just at a much smaller scale that we’re able to do once the full site is built.”

BAMF Health opened its first theranostics clinic in August 2022 at the Doug Meijer Medical Innovation building on MSU’s downtown Grand Rapids research campus.

The company plans to start treating earlier-stage prostate cancers by late 2024 or early 2025 and has about 20 clinical trials ongoing to use the technology on other forms of cancer, including lung, pancreatic, kidney, melanoma, sarcoma and neuroblastoma. BAMF Health also has a clinical trial occurring in Grand Rapids for cardiac imaging that could replace stress tests.

As well, BAMF Health uses the medical imaging technology on people with Alzheimer’s disease and within 60 days will start treating Alzheimer’s patients in Grand Rapids with a new drug, Leqembi, that’s administered through infusion, Bassett said.

Swiss pharmaceutical company Novartis AG has designated BAMF Health as a global center of excellence for its entire clinical trial pipeline.

Renting is realistic

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From Page 3

Openings 131 E. Main Ave. Zeeland After a three-year hiatus, Zeeland’s Public Restaurant is back in business as of June 25. The reopening comes three years after Public’s abrupt closure in 2021, when the building owner announced plans to expand its business into the restaurant space, which never materialized. Owner Lucas Grill said the new Public Restaurant is a “cuter” version of its former self, and will boast a new menu and a full design refresh in the dining space.

The restaurant will seat 54 guests for lunch service from 11 a.m.-4 p.m. Tuesday through Friday and offer dinner service from 4-9 p.m.

Tuesday through Saturday.

Reservoir

2155 Ottawa Beach Road, Holland Corina and Vasilios Sepsakos, the Grand Rapids restaurateurs behind Brickyard Tavern and Brick and Porter, opened a new concept in the former Ottawa Beach Inn in late May. Reservoir restaurant seats 165 guests for upscale Italian-American fare during the summer and will offer comfort food for locals during the winter months.

The restaurant boasts a 2,000-square-foot patio and views of the lake, while a to-go counter offers pizza, sandwiches and other basic menu items.

Coming soon The Vous Cafe

401 N. 7th St., Grand Haven Overcoming Barriers Inc. and the Momentum Center (For Social Engagement) are working together to reopen Grand Haven staple Rendezvous Family Dining under a new name, Vous Cafe. The restaurant will seat approximately 72 people for breakfast and lunch, offering Rendezvous menu favorites “with a twist,” Overcoming Barriers founder Kaja Thornton-Hunter told Crain’s this spring. While Thornton-Hunter hoped to open Vous Cafe in March, the organization has yet to set a grand opening date for the restaurant.

A burger featured on Public’s new menu. | COURTESY PHOTO

Reservoir is located across the street from Lake Macatawa. | COURTESY PHOTO

Happystance

Adelaide Pointe, a $250 million marina, luxury condo, hotel and mixed-use project under construction on Muskegon Lake, will include a new restaurant and bar, Muskegon Brewing Co. that the owners expect to open this summer. The new restaurant will revive a pre-Prohibition brand that went out of business in 1957 after more than 80 years in operation. Muskegon Brewing partnered with Muskegon’s Pigeon Hill Brewing Co. to produce beer under the brand name. When the restaurant and bar opens, Muskegon Brewing Co. will seat 250 people and offer a view of the lake. The focal point of the restaurant will be its 42-seat curved bar that extends between the 5,500-square-foot restaurant and the 2,700-square-foot patio. An opening date for the new restaurant has yet to be set, but developer Ryan Leestma told Crain’s Grand Rapids Business the pub could open by the end of June.

several economic factors, noting that “nearly the entire (restaurant) industry is struggling with the same effects of extreme inflation, which means there’s no magic fix.” The restaurant is currently listed for sale.

Foxtail Coffee

Beefy’s Burger Shack

8 W. Center St., Douglas New brunch restaurant Happystance is opening soon in Douglas, where co-owners Katie Herbert and chef Patrick Conrade will offer hearty, traditional breakfast fare with vegan options, relying on West Michigan farms to provide produce.

The menu will focus on bright, farmfresh ingredients to make standard breakfast classics and a range of vegetable-focused dishes. While Herbert and Conrade had planned to open the restaurant in May, they have yet to set an opening date, although they have recently started advertising for positions at the location.

The Dragon and The Mermaid

415 S. Beechtree St., Grand Haven The Unicorn Tavern announced plans in November to add a sister concept, The Dragon and The Mermaid. The tiki bar and barbeque restaurant will be located outdoors in the 6,100-square-foot backyard area and will offer a separate menu from the Belgian-inspired Unicorn.

In addition to authentic tiki flavors, the restaurant will feature staple items like burnt ends alongside a variety of sides, sandwiches, burgers and vegan options. The seasonal concept eventually will be open from May to September, but has yet to set a grand opening date.

Muskegon Brewing Co.

500 Adelaide Circle, Muskegon

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3657 63rd St., Saugatuck After five years in business, Guardian Brewing Co. closed permanently on March 18, as co-owners Kim Collins and Kate Bishop prepared to move out of state to attend to an unforeseen family medical situation. The 12,000-squarefoot restaurant and brewery was located in the former Red Barn Theater off Blue Star Highway in Laketown Township. Guardian Brewing had a 1,200-square-foot taproom and restaurant with 24 taps, a 10-barrel brewhouse and a 3,000-square-foot outdoor patio.

The brewery is currently listed with Callander Commercial for $1.25 million.

909 W. Savidge St., Spring Lake This spring, Spring Lake burger joint Beefy’s Burger Shack closed permanently, according to a report

by WOOD-TV8. The owner noted the old building had experienced

UMH-W From Page 3

Parkway and Wilson Avenue SW after relocating from Grand Rapids’ southeast side. UM HealthWest back then was known as Metro Health prior to the acquisition by UM Health in 2017.

Closing on the purchase is “subject to the university satisfying itself with the environmental condition of the site and otherwise

Mermaid Bar & Grill, Baldy’s Smoked Meats

340 Water St., Saugatuck Restaurateur Eric Chaitin, owner of Mermaid Bar & Grill and Baldy’s Smoked Meats, which shared a building in downtown Saugatuck, has not reopened either business this year after closing for the season last fall. While neither restaurant has confirmed its closure on social media, both locations are listed for sale. A listing agent with Advantage Commercial Real Estate confirmed to WOOD-TV8 that the restaurants will not be reopening. Mermaid Bar offered outdoor dining only, with a menu of fresh seafood options and a view of the Kalamazoo River. Meanwhile, Baldy’s Smoked Meats offered classic pit-smoked barbeque. Chaitin purchased Mermaid Bar in 2016, and opened Baldy’s Smoked Meats in 2019.

completing due diligence,” Chatas wrote.

UM has no plans presently for the parcels, which “could be used for future growth,” U-M Health President Dr. David Miller said in a statement to Crain’s Grand Rapids Business.

“We are just beginning to assess how the properties could fit into our growth strategies, and any current leases with tenants of the buildings will continue at this point,” Miller said.

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57 E. 8th St., Holland This spring, Baton Collective, the family office for Cheri DeVos Ehmann, announced plans to bring Florida coffee shop franchise Foxtail Coffee to Michigan, starting with locations in Ada and Holland. While the Ada Village Foxtail location opened in late May, construction crews are currently renovating the Holland storefront that was formerly home to Ferris Coffee and before that was known as JP’s Coffee and Espresso Bar. The current owners have yet to announce an opening date for the new coffee shop. Baton Collective Director of Business Operations Sam Nichols said the shop will offer a “craft coffee menu” in addition to light food options like sandwiches. He also anticipates adding beer and wine to the menu in the near future.

Guardian Brewing Co.

flooding and major plumbing issues and required ceiling repairs and more. The plan is to tear it down to build something new in the space. The restaurant originally opened as Small Town Sandwich Shop in 2015, rebranding after the pandemic. Beefy’s Burger Shack offered smash burgers, fries, malts and shakes.

Crown & Cork Restaurant

Happystance will focus on using farm-fresh produce and bright, herby flavors that change with the seasons. | COURTESY PHOTO

502 W. Loomis St., Ludington Ludington waterfront eatery Crown & Cork closed in March after three years in business, citing a lack of profitability during the lakeshore town’s offseason, according to local reports. The restaurant offered a range of classic pub fare and cocktails. Owner Lynda Matson told Mason County Press the decision to close the restaurant was based on July 8, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 29

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THE CONVERSATION

Veteran auto supplier exec Laurent Bresson aims to take GHSP to the next level Laurent Bresson took over as the top executive at GHSP with an aim to take the Holland-based automotive technology supplier to “the next level.” A veteran executive for middle market auto suppliers, Bresson became president and CEO at GHSP on May 29. He succeeded Dan Dawiedczyk, who led GHSP for three years. GHSP produces mechanical and electromechanical systems primarily for the automotive industry, plus the transportation and appliance sectors. Bresson previously worked for four years at Mobex Global in Southfield, a $400 million tier one automotive supplier that provides machining, casting, engineering and automation services for the auto, heavy-duty, agricultural, industrial and refrigeration industries. He served as Mobex Global’s chairman, president and CEO from October 2022 until he joined GHSP. Prior to Mobex Global, he was with Nexteer Automotive Corp. in Auburn Hills from May 2010 to September 2016, a period that included serving as president and global chief operating officer for four and a half years. | By Mark Sanchez What attracted you to the position at GHSP? Many things. First of all, the product portfolio, which is really exciting. These are products with a lot of very exciting technologies, including software cybersecurity. I love that part.

The second thing is that we had some great, great interviews with the parent company, JSJ. We have a really good connection with the team there, which is really important, obviously. And, then the size of the company. I love this type of size. Typically, from $300 million to $1 billion is what I like doing, and especially when the company needs you to raise the bar to the next level, and that’s what the company needs right now.

What’s the opportunity for you?

I basically love increasing the performance of companies and I love evolving in a multicultural environment. GHSP is a midsized company, but it has a global footprint as well (with operations in Michigan, China, India and Mexico). I love that part. It’s mid-size, not too big, but at the same time, international and, again, (has) great technologies.

How did you connect with GHSP? Basically, it’s a small world.

I guess I have the name for improving performance in companies and I’d been referred to JSJ by some well-known companies in the industry.

What are your goals for the company under your leadership?

Every time I’ve taken a role like this, it’s to grow the company profitably, which means … getting the organization to the next level in terms of performance. You have to be really strong from a costcompetitiveness standpoint or you are going to have some issues at some point. You’re going to get commoditized.

That’s really my focus, making sure that we grow the company profitably and we continue developing new technologies and serving our customers with the best approach.

CrainsGrandRapids.com President and CEO KC Crain Group publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com Executive editor Mickey Ciokajlo, mickey.ciokajlo@crain.com Editor Joe Boomgaard, joe.boomgaard@crain.com Managing editor Andy Balaskovitz, andy.balaskovitz@crain.com Special projects editor Tim Gortsema, tim.gortsema@crain.com Director of audience and engagement Elizabeth Couch, elizabeth.couch@crain.com Audience engagement editor Matthew Pollock, matthew.pollock@crain.com Director of Visual Media Stephanie Swearngin Creative director Thomas J. Linden, tlinden@crain.com Associate creative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Notables coordinator Ashley Maahs REPORTERS Kate Carlson, real estate, kate.carlson@crain.com Jack Grieve, audience engagement, jack.grieve@crain.com Abby Poirier, restaurants, retail and agribusiness, abigail.poirier@crain.com Mark Sanchez, health care and finance, mark.sanchez@crain.com Rachel Watson, residential real estate, insurance and tourism, rachel.watson@crain.com Danielle Nelson, research and data, danielle.nelson@crain.com ADVERTISING Senior vice president of sales Susan Jacobs, susan.jacobs@crain.com Advertising & event sales director Jill May, jill.may@crain.com Account executive Jennifer Maksimowski, jennifer.maksimowski@crain.com Michigan events director Samantha Flowers, samantha.flowers@crain.com Events Planner Tressa Brondyke, tressa.brondyke@crain.com People on the Move manager Debora Stein, dstein@crain.com Classified sales Suzanne Janik, sjanik@crain.com Sales assistant Rachel Smith CRAIN’S CONTENT STUDIO Senior director of Crain’s Content Studio Kristin Bull, kbull@crain.com Crain’s Content Studio manager Clare Pfeiffer Content marketing specialist Allie Jacobs PRODUCTION Vice president, product Kevin Skaggs Product manager Tim Simpson Prepress/production director Simone Pryce

Laurent Bresson became president and CEO at GHSP on May 29.

What are the challenges for the company right now, especially as the auto industry electrifies over the next decade with electric vehicles?

The company — and this is part of what attracts me — is transitioning. Historically, the company has been more of a mechanical company. Within the past 10 years, the company has evolved to be more in mechatronics. Now, all the new products that we are launching are mechatronics with more and more software systems, engineering and cybersecurity, and I love this position.

The challenges for the company, which excites me, are to continue this transition and grow the innovation and technologies in the mechatronics space, and at the same time, obviously, transition to more EVs and PHEVs (plug-in electric hybrid vehicles).

The challenges are no different than any automotive supplier

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these days, especially with the volume volatility with regards to EVs — a lot of investments, a lot of new launches in EVs right now, but the volumes are not there. The challenge is to keep investing in these areas, and at the same time, being extremely cost competitive simply because the volumes have not materialized yet.

How do you respond to what we’ve heard lately about the automotive OEMs’ need for suppliers to help reduce the costs of EVs? It’s always like this when you start with new technologies. At the beginning, it’s low volume, it’s higher pricing of components.

But as the volume increases, there is increased competition.

Our main customers are the Big Three, but also China and others, and there is immense cost competition as well. The Chinese OEMs are making strides.

We all hold the same common goal with the OEMs to keep

innovating and at the same time reducing costs, which is really the way to survive and fight in the automotive industry.

Isn’t that how it’s always been for auto suppliers?

I would say it has. There are cycles, (but) it has pretty much always been like this. If you look at the financial health of the auto suppliers right now, it’s extremely challenging, even for the largest ones, and the reasons for that are many: the cost increase that the supplier base has been facing with labor increases and all the other inflationary cost increases. At the same time, they need to invest in EVs with a lot of launches and high investments in terms of engineering and capital, and at this point not getting the return as the volumes are not materializing. So, it’s very common in automotive.

There are always cycles and right now is probably one of the most challenging times for the auto suppliers.

Crain’s Grand Rapids Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice chairman Mary Kay Crain President and CEO KC Crain Senior executive VP Chris Crain Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Volume 41, Number 14 Crain’s Grand Rapids Business (ISSN 2836-7723) is published biweekly, with an extra issue in April and September, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit, MI 48207-2732. Periodical postage paid at Grand Rapids, Michigan. © Entire contents copyright 2024 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

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