Crain's Grand Rapids Business, September 30, 2024

SEPTEMBER 30, 2024

Tourism experts mull need for hotel Proposed site is just north of future Acrisure Amphitheater and west of arena

By Rachel Watson

RIVERFRONT PLAN GROWS DOWNTOWN Former Charley’s Crab site would include offices, hotel and residential units with a total price tag of $738.5 million

By Rachel Watson

A project team for the DeVos and Van Andel families plans a massive mixed-use project spanning three skyline-changing towers with

offices, a hotel and 671 residential units on riverfront land they own just north of the Acrisure Amphitheater.

Officials with Progressive Companies and Michigan Growth Advisors shared plans for the

five-year, $738.5 million project on a 6.9-acre vacant riverfront site that previously included the Charley’s Crab restaurant and is now mostly surface parking at and around 63 Market Ave. SW. The team was scheduled to present the plans to the Grand Rapids Brownfield Redevelopment Authority on Sept. 25.

Dubbed Fulton & Market, the project calls for more than 1 million square feet of real estate and would feature the tallest building in Grand Rapids: A 43-story residential tower with 595 units and six floors of parking. A 27-story hotel and condo tower, which would share the

A 130-room hotel proposed as part of a $739 million riverfront development is designed to absorb an increase in overnight stays as two major sports and entertainment venues come online, though local hospitality officials are still determining what kind of hotel the market could support.

The hotel would be included in one of three new towers proposed at the Fulton & Market development that was made public Sept. 20.

An entity tied to the DeVos and Van Andel families, Fulmar Property Holdings LLC, presented the plan to the city for a 6.9-acre vacant riverfront site at and around the former Charley’s Crab restaurant at 63 Market Ave. SW. The development would include three

See RIVERFRONT on Page 25

See HOTEL on Page 25

The Fulton & Market project calls for three high-rise towers along the Grand River where the former Charley’s Crab restaurant once stood. | PROGRESSIVE COMPANIES

Volleyball league founders sue DeVos-backed company Dispute arose during a takeover bid at the beginning of inaugural season

By Mark Sanchez

The founders of a women’s professional volleyball league are suing an entity tied to Dan DeVos, claiming the company

failed to pay $500,000 it owed as part of a deal to acquire a controlling interest in the fledgling league.

David Whinham and Stephen Evans, who formed Pro Volleyball Federation LLC in 2022, alleged in a federal lawsuit filed Sept. 17 that DeVos-backed PVF Ventures LLC missed an Aug. 12 deadline to pay the second installment of funds in a $1 million deal for most of the shares in the entity that owns league.

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The case outlines a highly contentious period during the launch of the league, which began play on Jan. 24 of this year, and revealed for the first time DeVos’ attempts to shore up and salvage the league as the inaugural season got under way.

A mere three weeks after the league’s first-ever match took place, the founders of the Pro Volleyball Federation inked a $1 See VOLLEYBALL on Page 28

The Grand Rapids Rise was the first franchise announced for the Pro Volleyball Federation. | FILE COURTESY PHOTO BY NICOLAS CARRILLO

HEALTH CARE Trinity Health plans ‘extensive’ cancer center renovations

MINORITY BUSINESS Native American certification effort woos corporate help

FORUM ‘Multi-layered effort’ key for public safety efforts in downtown Grand Rapids

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Trinity Health Grand Rapids plans a major renovation project at the Lacks Cancer Center to provide increased outpatient capacity. | COURTESY PHOTO

Trinity Health prepares for ‘extensive’ cancer center renovations

Caleb Herrygers is a fourth-generation farmer and operations manager at Herrygers Farms in Oceana County. The company’s labor costs for workers employed on H-2A visas has gone up $400,000 compared to eight years ago. | COURTESY PHOTO

New coalition sounds alarm on federal farm labor wage mandates

Transformation would provide increased outpatient capacity at downtown facility

By Mark Sanchez

“We have to do something about the wage and we have to do it fast,” said Jamie Clover Adams, executive director of Michigan Asparagus Association and former director of the Michigan Department of Agriculture and Rural Development from 2012-2018 under Gov. Rick Snyder. Clover Adams is leading the coalition’s efforts.

Members of Protect our Produce include: Michigan Asparagus Association, the Michigan Farm Bureau, Potato Growers of Michigan, the Michigan State Horticultural Society, the Michigan Vegetable Council, the Michigan Blueberry Commission, the Michigan Tree Fruit Commission and the Michigan Agri-Business Association.

Trinity Health Grand Rapids has kicked off the planning process for a “pretty extensive” renovation of the downtown Richard J. Lacks Cancer Center, Crain’s Grand Rapids Business has learned.

While in the early stages of planning, the renovation would provide increased outpatient capacity at the Lacks Cancer Center to accommodate the Cancer Network of West Michigan, a collaboration that Trinity Health formed and operates with University of Michigan Health-West.

Early designs call for the project to take place on the first two floors of the five-story, 172,000-squarefoot Lacks Cancer Center.

“We’re in the planning stages of a pretty extensive renovation trying to understand the final design elements and cost estimates and

See FARM LABOR on Page 29

See TRINITY on Page 29

Growers fear escalating costs for H-2A workers will put them out of business | By Abby Poirier With the formation of a new coalition, Michigan farm organizations want to highlight the bind that they say rising federal wage mandates for migrant labor are putting on the state’s agricultural economy.

According to Michigan’s agricultural leaders participating in the new Protect our Produce coalition, the state’s status as a significant leader in asparagus, tart cherry, apple, blueberry and other hand-picked crop production is at risk because of steadily climbing federal wage mandates that apply to migrant farm labor.

In 2024, Michigan’s adverse effect wage rate (AEWR) that the U.S. Department of Labor sets for migrant workers employed on H-2A visas rose for the 10th consecutive

A farmer inspects asparagus plants that have gone to seed. | COURTESY PHOTO

year. Michigan farmers today are paying $18.50 an hour for H-2A labor, an increase of 6.7%.

In forming the Protect our Produce coalition, a wide range of

Michigan agricultural groups want to identify solutions to the problem once and for all and get the major state industry back on more sustainable footing.

Rate cuts may fuel M&A deals Experts say ‘cheaper’ money will attract more buyers and sellers in 2025

By Mark Sanchez

While the mergers and acquisition market plodded along for the last two years, it has steadily gained steam throughout 2024 and could get a boost if interest rates start to come down.

Although perspectives differ on how much rate cuts could affect M&A activity, professionals who work on transactions say the rate hikes since early 2022 have certainly weighed on deal flow.

It’s widely expected that the Fed-

eral Open Market Committee (FOMC) will begin easing monetary policy. If that happens, the M&A market could benefit from the lower cost to finance deals, and from more sellers and buyers getting into the market.

“I don’t think it’s particularly slow now. It’s only going to go up as rates come down and money becomes cheaper,” said Josie Boucher, a partner in the business practice group who leads Warner Norcross + Judd LLP’s Kalamazoo office.

“Everyone that I’ve spoken to is

pretty confident that the Fed is going to start lowering rates, and we’re anticipating that that is going to bring some more activity to the market as buyers have access to cheaper capital,” Boucher told Crain’s Grand Rapids Business. “I think things are going to pick up even more than they are now, and there will be better valuations for sellers because the money’s not going to be quite so expensive for buyers. They’re going to have more See M&A on Page 28

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Owner explores options for distressed Bridgewater Place

By Kate Carlson

The future of Bridgewater Place, one of downtown Grand Rapids’ largest office buildings, remains uncertain after its owner disclosed to financial regulators that the property may face receivership as the company works toward financial stability.

Building owner Hertz Properties Group acknowledged in a recent securities filings with the Tel Aviv Stock Exchange that it is exploring options including refinancing, restructuring loans or selling the 17-story office tower.

The company, an arm of California-based Hertz Investment Group, earlier this year defaulted on a loan for the property after failing to pay a $1.52 million cash deposit to its lender, which demanded the payment after Corewell Health opted against renewing its lease and vacated the building last year. The health system moved out as part of a consolidation to its new offices in the Monroe North neighborhood.

Meanwhile, the valuation of Bridgewater Place also decreased by $3.7 million, to $33.7 million, as of June 30, according to a recent Hertz earnings report. This was primarily because vacancy rates at the 410,000-square-foot building increased from 24.5% to 27.5% during the same reporting period, caused largely by Corewell’s exit.

The financially distressed Bridgewater Place is contributing to Hertz Properties’ financial challenges, causing management to recognize significant doubts about the company’s ability to continue operating as a going concern, according to filings that were translated by Crain’s Grand Rapids Business. Factors contributing to the company’s financial trouble include downgraded bond ratings, a deficit in working capital and ongoing challenges with the U.S. office real estate market.

As of June 30, Hertz had not yet

Bridgewater Place in downtown Grand Rapids. | ANDY BALASKOVITZ

decided on options for Bridgewater Place, and the property could face receivership in the near future, according to the filings. Real estate services firm CoStar reported earlier this month that a Hertz Properties building in St. Louis recently went into receivership while a New Orleans office building was lost through foreclosure.

The company also hired a chief restructuring officer, brought on by irregularities in financial reporting along with the company’s broader financial distress, according to a recent filing first reported by CoStar.

Hertz Properties leaders are meeting with bondholders to discuss redeeming $200 billion in bonds used to finance 11 U.S. office properties; the company previously opted to suspend principal and interest payments on the bonds.

“We are continuing to work with our Israeli bond partners to create value throughout the portfolio,” Timothy McCarthy, executive vice president of development at Hertz Investment Group, told Crain’s Grand Rapids Business via email.

“It’s certainly a tough time for com-

mercial real estate, office investments even more so, but we’re committed.”

McCarthy said Bridgewater Place “is in good standing within the existing parameters of (its) loan.”

Hertz changed its listing agent in April from Colliers International to JLL to try to address the growing vacancy in Bridgewater Place. An online listing shows immediate availability on the building’s first floor, floors 3-7, and ninth floor.

One of the listing agents on the property, Jeff Karger, declined to comment on the recent earnings reports from Hertz, but reiterated that JLL remains the listing agent for the building.

Meanwhile, Colliers claimed a commercial real estate broker’s lien on the property on July 25 for nearly $60,000 in outstanding broker’s fees.

Scott Morgan, senior vice president of Colliers International’s West Michigan office, said he is hopeful that Hertz will be able to pay the outstanding commission fees they are owed, which he claims

far surpass $60,000.

Commercial real estate liens can only be claimed within 60 days after a lease is signed. Colliers was hesitant to claim liens for previous amounts it was owed when it was the listing agent, Morgan said.

Hertz paid commissions to Colliers on time up until around December 2023, he said.

“We’re told Bridgewater is still a performing loan and we’re hoping to rectify this with everybody,” Morgan said. “It’s a common thread throughout the U.S. with regard to urban properties with everyone in the same bind. Hopefully everybody is made whole.”

Orion Construction also claimed two construction liens on the property on May 30 for $70,310 and $56,788 related to suite improvements, as Crain’s previously reported.

Northwestern Mutual also filed a lawsuit against Hertz on Aug. 22 in Kent County Circuit Court for not reimbursing the firm for nearly $130,000 of improvements made to its offices in the building. The financial advisory firm signed a lease on June 16, 2023, for three suites in the building on the 12th and 13th floors.

Northwestern Mutual was owed a progress payment on Dec. 15, 2023, for upgrades made to its offices, which was not received, according to a letter from Northwestern Mutual’s chief operating officer Gustavo Cueto. The firm asked Hertz again about the payment in June with no response, according to the letter.

Colliers has had an office in the building for almost 10 years, Morgan said. The suites that Corewell vacated also are built-out, which could help attract tenants, he added.

Hertz could end up liquidating some of its office properties but still maintain Bridgewater Place, or it could possibly be sold to a new owner, Morgan said.

If Hertz maintains ownership of Bridgewater, the company would have to maintain the building and be prepared to “go to war” with other buildings downtown to get tenants, Morgan said. If the building is sold at a discount, the rents on vacant spaces in the building could be low enough and undercut other office properties in the area, he said.

Hertz Properties has nine office buildings across the U.S. totaling 4.03 million square feet, of which one-third is sitting vacant, according to a report in CoStar. Bridgewater Place’s vacancy rate was at 27.5%, as of June 30, according to Hertz Properties.

The company is pursuing property sales and conversions at its other office buildings. If a residential conversion were possible at Bridgewater Place, Morgan guesses Hertz would have already been pursuing that at the building.

“The biggest floors are harder to divide, and that is where the bulk of the vacancy is,” Morgan said.

Since the height of the COVID-19 pandemic, many office experts have cited the layout of office buildings and where windows and door frames are located throughout floor plans as the main obstacle to converting them to residential uses.

Grand Rapids’ central business district had an 11% vacancy rate, with downtown at an 8% vacancy rate at the end of the second quarter of 2024, according to the latest Colliers office market report. Both percentages were up 0.3% since last quarter.

West Michigan as a whole had negative net absorption during the second quarter of this year, with 48,910 square feet of office space returning to the market, according to the market report. Over the same time frame, leasing activity improved with the most activity taking place in downtown Grand Rapids and the Cascade area.

Developer plans housing for surface lot of vacant grocery

By Kate Carlson

A prominent West Michigan development firm intends to construct a multi-family development on the surface parking lot of a shuttered Family Fare store on the city’s southeast side and convert the former retail space to self-storage units.

Developer Jade Pig Ventures, coowned by Scott Wierda and Brian DeVries, detailed plans for the former Family Fare store at 4325 Breton Road SE as part of the Sept. 12 Grand Rapids Planning Commission meeting. The grocery store had operated at the site for more than 25 years before closing in July 2021, according to prior reports.

Jade Pig purchased the property for $4.6 million in 1998, according to property records.

The Grand Rapids Planning Commission approved a special land use request to turn the former

grocery store building into a self-storage facility. Wierda told Crain’s Grand Rapids Business that he will now begin the planning process with architectural firm Ghafari for a residential project he is planning on the adjacent, 325-space surface parking lot on site.

Mixed-use residential is allowed on the property by-right, but Wierda said he wanted to secure the special land use to redevelop the vacant grocery store into another use before proceeding with the residential project on the parking lot.

“It was a question of, do I spend money on architecture if I don’t know I’m allowed the other use on the site,” Wierda said. “Now, with this approval, it will kick off Ghafari to start designing the (residential) piece and go through all of those details, which will happen in the next several months. After winter, we’ll start construction.”

Wierda told the planning com-

Jade Pig Ventures is proposing to build a new residential project on the surface parking lot of a former Family Fare store at 4325 Breton Road. The company wants to turn the former retail space into self-storage. | JADE PIG VENTURES

mission that the grocery store was never that successful in the location, and he and DeVries had been working for the past five or six years to market the building for some other use.

Plans call for adding signage on the east and north sides of the

51,000-square-foot former grocery store building. The project does not involve any other exterior changes.

The development team plans to work with a national self-storage company to renovate and operate the facility. Individual unit sizes will range from 25 to 300 square feet.

“I really do think this is an interesting time in the city of Grand Rapids,” Wierda said. “It is really encouraging to see the city and planning commission encourage mixed-use investments. Strategically, for my partners and I, it has our attention.”

The city planning department has been critical of self-storage facilities in the hope of supporting higher and better uses in the long term, Planning Director Kristin Turkelson said during the meeting.

Several planning commissioners expressed that while they were not fans of self-storage projects, they were swayed in this case because the building had been vacant for several years.

“Either we do something with this or we do absolutely nothing with this, and I don’t think people want to live next to an abandoned building,” said planning commissioner Lawrence Williams.

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News | Analysis | Events

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Entertainment venue Silva set to open doors in early 2025

By Kate Carlson

Disco balls, chandeliers and a custom bar with a circus aesthetic will adorn the restaurant set to open early next year inside of Silva, Mark Secchia’s 60,000-square-foot bocce entertainment and event center under construction north of downtown Grand Rapids.

The $16.5 million project located at 975 Ottawa Ave. NW is the former Riverfront Fitness Center that Secchia bought for $2.5 million in March 2023.

Rockford Construction Co. is the general contractor and Integrated Architecture is designing the project, which is working through the demolition and rebuilding process.

Beyond the restaurant, Silva would include five indoor bocce ball courts, outdoor seating, an event venue, indoor parking, and a game room with pool and darts, which will open after the restaurant on a yet-to-be-determined timeline, Secchia told Crain’s Grand Rapids Business.

Secchia, the son of late businessman and former U.S. ambassador Peter Secchia, is aiming for “fancy, but whimsical,” at Silva, he said.

“People wonder why I’m throwing money at bocce,” Secchia said with a laugh. “Someone has got to do it first, but if it doesn’t work, we can rip out the courts and put something else there. But I think it will work.”

The restaurant portion is Secchia’s main focus right now, he said. It will feature a dessert bar, and a large custom-built bar with a circus top design. Ground-floor seating for the restaurant would have the capacity for 168 people, and capacity for an additional 50 people in the outdoor seating area on the north side of the building.

Several private and overflow dining rooms would be included on the second floor.

Secchia is designing a machine to allow people to guide bocce balls on the ground with their feet to a side rail machine so they wouldn’t have to bend over as much when they play. The thinking is that it would also allow people to be more hands-free to eat and drink when they are playing, Secchia added.

“I want to make everything more social and have non-digital experiences here,” Secchia said.

The project is also designed to “reward people who come early” to Silva in the afternoon with a 23spot covered parking deck on the first floor of part of the building, ample seating areas and the ability to play pool and darts for free in the Rec Room, or while people wait to be seated at the restaurant.

The bocce courts would be the only aspect needed to be rented out ahead of time as of now, Secchia added.

“Since we won’t take reservations, we’re trying to create unique areas around the building,” Secchia said. “We kind of want people to get here early and reward them with something to do and little spots to

Matthew Borisch’s cottage on Walloon Lake. | CHARLEVOIX COUNTY PROPERTY RECORDS

Judge rules bank can seize property to pay off boat dealer’s debts

By Rachel Watson

Mark Secchia, above, is leading the $16.5 million renovation of a former fitness center in Grand Rapids’ Monroe North neighborhood. He aims to open the first phase of Silva in early 2025. | KATE CARLSON

hang out.”

The “Big Room” event space on the second floor will be a venue for concerts and live performances as well as private events such as wedding receptions and corporate parties. The 1,440-capacity room will be above the parking garage and feature a concessions area, bar, a green room for performers and a terrace area. Food would be made in the downstairs kitchen for guests and brought to the venue via an elevator.

Secchia plans to book the space with a wide range of public and private events for the first year or two to figure out what kind of event is most successful, then focus more in that direction, he said.

“We’ll see what works,” Secchia said.

Secchia is pulling inspiration, physical signs and adornments from West Michigan staples to display throughout Silva.

Future patrons of Silva might recognize salvaged pieces from former Grand Rapids establishments, including Charley’s Crab bathroom doors, the Lanning’s restaurant sign, and the taxidermy moose head that used to hang at Back Room Saloon and later Tootsie Van Kelly’s, Peter Secchia’s club that operated until the mid-1990s in the Amway Grand Plaza Hotel.

Secchia also will display items throughout Silva from the Grand Rapids Public Museum’s archives.

He envisions changing displays every three to six months, possibly putting an emphasis on Grand Rapids’ furniture manufacturing

history to pay homage to the building that used to house the Berkey & Gay Furniture factory.

Secchia plans to draw patrons from the nearby Corewell Health Place office park, adding a slightly more upscale option to the Monroe North neighborhood, he said.

The project has secured letters of support from the Monroe North Business Association and the Neighbors of Belknap Lookout (NOBL). Both organizations writing to the city planning commission stated that Secchia and the project’s team have been involved in the neighborhood and transparent about the project.

“The positive feedback from committee members and neighbors reflects our collective excitement about the project,” NOBL Executive Director Kristina Colby wrote to the planning commission.

“Silva promises to be a unique attraction, and we welcome the concept as a valuable addition to the Belknap neighborhood.”

However, Secchia’s plan has faced pushback from a nearby manufacturer. Leadership from Proto-Cam Inc., an automotive parts supplier located just north of Silva, argued in a letter to the planning commission that Proto-Cam has exclusive easement rights to the street where outdoor sidewalk seating is proposed.

Proto-Cam and Secchia have been engaged in a legal dispute since August 2023 about easements and ownership of Walbridge Street between Silva and Proto-Cam’s building at 1009 Ottawa Ave. NW.

Mercantile Bank will be allowed to seize property held by Tommy’s Boats owner Matthew Borisch and collect guarantees from family members to pay off outstanding debts as the West Michigan boat dealer’s legal saga continues.

In a written opinion issued earlier this month, Kent County 17th Circuit Court Judge T.J. Ackert granted Grand Rapids-based Mercantile Bank’s motion for summary disposition, allowing the bank to foreclose on two Borisch family-owned properties on and around Walloon Lake in Charlevoix County.

The family, including Matthew and Kara Borisch and Jonathan Borisch (Matthew Borisch’s father) and related holding companies, pledged the properties as collateral to guarantee a 2022 commercial loan of more than $9.5 million for Tommy’s Boats locations in California, Nevada and Arizona, according to court filings.

Mercantile Bank filed suit against the family and the holding companies on April 24, alleging that the borrowers defaulted on the loan and asking the court to allow the bank to foreclose on and seize the properties in Charlevoix County’s Bay Township.

Ackert ruled the defendants have until Oct. 25 to pay in full the outstanding amount of more than $4.7 million, plus attorneys’ fees and costs, after which Mercantile Bank can seize the properties and sell them to pay off the debts. Under the terms of the agreement, Jonathan Borisch’s liability is capped at $4 million.

The 0.3-acre Walloon Lake property has a home and frontage on the west side of Walloon Lake that’s valued at roughly $3.5 million, according to Charlevoix County property records. Matthew Borisch’s trust purchased the property in 2010 for $500,000.

The nearby 35-acre Mulberry Farm property includes a house and barn that’s valued at approxi-

mately $362,000, according to county records. MKB Holdings, which is registered to Matthew Borisch, purchased it in 2012 for $140,000.

Mercantile Bank is Tommy’s Boats’ second-largest creditor in an ongoing bankruptcy case filed May 20 in the U.S. Bankruptcy Court for the Northern District of Texas.

Founded in 1981 in Denver, Colo., Grand Rapids-based Tommy’s Boats was later acquired by the Borisch family and now lists 15 dealerships in eight states. The company bills itself as one of the largest pontoon dealers in North America.

Since April, Tommy’s Boats has been embroiled in three separate lawsuits with supplier Loudon, Tenn.-based Malibu Boats Inc. and two banks, Mercantile and Buffalo, N.Y.-based M&T Bank, with fraud accusations and hundreds of millions of dollars at stake.

In its bankruptcy filing, Tommy’s Boats listed the 30 largest unsecured claims totaling nearly $123.6 million. M&T Bank was listed as the company’s largest creditor, with a total claim of more than $105 million, followed

by Mercantile Bank with a $4.73 million claim.

The bankruptcy filing from May indicated Tommy’s Boats has assets of $1 million to $10 million and liabilities of $100 million to $500 million.

Tommy’s Boats’ chief restructuring officer Monica Blacker said in the bankruptcy filing in May that the company intended to sell its assets in order to pay back creditors “at the highest and best price.”

The Texas bankruptcy court on Aug. 27 approved Matthew Borisch’s motion to sell Tommy’s Boats’ dealer location and assets in Melrose Township on Walloon Lake to Jonathan Borisch for just less than $1.24 million.

Mercantile Bank’s attorney did not immediately respond to a request for comment. The Borisch family declined to comment.

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Grand Haven picks developer for Chinook Pier site

By Kate Carlson

The city of Grand Haven has chosen to move forward with one of two developers to repurpose prime riverfront property where Chinook Pier retail shops once stood with a multi-use food market, storefronts and a potential restaurant.

The Grand Haven City Council considered conceptual redevelopment plans from the Grand Rapids-based CopperRock Construction as well as Grand Haven-based Cherette Group. The council on Sept. 15 voted 3-1 to begin development negotiations with CopperRock.

City staff will now negotiate a development agreement with CopperRock to refine the project. A final draft of the development agreement will come back to the city council in the future for final approval.

“At the first presentation, I said it was important to me to find a partner to work with, and that’s at the stage we’re at,” Councilmember Kevin McLaughlin said at the meeting before the vote. “We are a long way away from actually getting a development done, but up to this point I have been very impressed with CopperRock. They have gone way beyond what we had requested and so I am 100% behind CopperRock. I hope we can get to an agreement there.”

CopperRock proposes a 12,000-square-foot, multi-use food market that could support an expanded farmers market with indoor and open-air vendor spaces.

The developer also proposes a 21,000-square-foot Riverwalk Small Vendor Shops building with about 12 storefronts, and an additional leasable space that could house a “destination-type retail space,” such as a restaurant, according to conceptual site plans.

CopperRock’s conceptual plan also calls for active greenspace.

Shyle Lyons, who coordinates Merchants and Makers vendor events and serves as the city’s director of digital content, spoke during the public comment portion of the meeting in favor of CopperRock’s proposal. Lyons has been hosting vendor events at Chinook Pier for the past few years and said CopperRock’s proposal provides a better way to hold indoor markets there.

“It would provide a location for not only farmers markets to have a large, year-round space, which I think could be extremely important to Grand Haven for those farmers to have something year-round as well as makers and artists. We could hold our markets there, which I really appreciate.”

The city in 2020 demolished the Chinook Pier shops that once lined the 3.4-acre site along the Grand River that leads to Lake Michigan because of mold and water damage. The city has collected feedback from community members and received conceptual plans from developers as part of an RFP process in what has been a nine-month effort to redevelop the site.

Councilmember Michael Fritz voted against the resolution to

work with CopperRock because he favored Cherette Group’s plan, which called for building a location for a new Grand Haven Children’s Museum. He also stated that he wished Grand Haven residents could vote directly on what happens to the site.

“My heart is with the children’s museum because I have grandchildren myself,” Fritz said. “A lot of people say it’s not the right location, but then again we don’t have a lot of space for that to happen. It will attract people to our downtown and our downtown — if you come here in the wintertime —

they need help. We need a yearround event.”

While some Grand Haven residents wish to keep Chinook Pier undeveloped and use it as a greenspace, Councilmember Karen Lowe said that option would not be financially viable.

“The reality is the city cannot afford to lose this money-generating site to open space,” Lowe said. “People who don’t understand the finances of city government all want as much open parkland as possible, and that’s human nature, but it’s not sustainable. … Similarly, anyone who understands city finances

CooperRock Construction’s proposal for the Chinook Pier property in Grand Haven calls for a multi-use market, a two-story mixed-use building with office and retail that would include about 12 small shops, and a restaurant with a large outdoor seating area. | ARCHITEKTURA PLC

knows we really can’t afford to place a nonprofit, non-tax-generating 20,000-square-foot children’s museum on this site. It would be fiscally irresponsible to do so.”

Lowe said she hopes the board

working to launch the Grand Haven Children’s Museum will work with the city to open at a different site.

CopperRock is working on the project with Grand Haven-based design firm Architektura PLC.

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Native American certification effort woos corporate help

By Joe Boomgaard

After one year in existence, the Grand Rapids-based organization that certifies Native- and tribally-owned companies as minority business enterprises has found corporate supplier diversity professionals require education about how Indian Country operates, but are open to working with its members.

That’s according to Jason Palmer, the executive director of the year-old National Native American Supplier Council (NNASC) and citizen of the Match-E-BeNash-She-Wish Band of Pottawatomi Indians, or Gun Lake Tribe.

To date, NNASC has certified 40-50 mostly Midwest-based companies as being Native-owned, Palmer said. Certified companies owned by tribal economic development corporations and invest-

“We exist because the MMSDC has a systemic exclusion of tribes.”

— Jason Palmer, the executive director of National Native American Supplier Council ment arms outnumber companies owned by individual Native Americans by a two-to-one ratio, he said.

“I would guess our growth will mirror that because the tribally owned and the tribal EDC-owned companies don’t have another certification path,” Palmer told

Crain’s Grand Rapids Business.

“We’re their only outlet, essentially. We’re their path to becoming certified as an MBE, where those individual Native-owned companies do have other paths to certification as an MBE.” Along those lines, Michigan firms owned by tribal investment arms have been shut out from other minority business enterprise certifications — namely from the Michigan Minority Supplier Development Council — because of their holding company structure that keeps white leaders in place after an acquisition.

“We exist because the MMSDC has a systemic exclusion of tribes,” Palmer said.

The tribes’ experiences shared many similarities with Detroit-based Piston Group, which sued the MMSDC after it stripped the Black-owned automotive supplier of its lucrative minority certification.

A Wayne County Circuit Court judge ruled that the MMSDC and its CEO Michelle Robinson engaged in “wrongful conduct” in the case.

Executives at tribal investment arms had expressed optimism that the MMSDC might change course on its exclusion of tribally owned businesses following the ruling, but those hopes for change appear to be quashed for now, as the organization on earlier this month filed an appeal of the verdict.

Asked why the exclusion of tribally owned businesses persists, Monica King, CEO of Grand Rap-

Tanya Gibbs, managing partner of Mshkawzi Law LLP, and Jason Palmer, executive director of the National Native American Supplier Council, speak during the 2024 Great Lakes Tribal Economic Summit. | COURTESY OF TRIBAL BUSINESS NEWS

ids-based Gun Lake Investments, the non-gaming investment arm of the Gun Lake Tribe, said: “Unfortunately, I think they don’t recognize the opportunity.”

King, who also serves as secretary of the board of directors for the NNASC, cited the National Minority Supplier Development Council’s goal of helping its certified MBEs generate $1 trillion in annual revenue.

“The head of the NMSDC talks about the road to a trillion dollars all the time. Well, that goes right through tribal country and they

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don’t recognize it,” King said. “Not only that, I think they have to really take it a step further. It takes a long time to understand until you work with multiple tribes that every tribe is unique. You really have to take the time to educate yourself about the tribes to understand the opportunity.”

The NNASC publicly debuted a year ago at the Great Lakes Tribal Economic Summit and returned to the annual event earlier this month to provide an update on its growth and challenges. This year’s summit was held Sept. 17-18 at the Four Winds Casino Resort and Hotel in New Buffalo.

Palmer outlined NNASC’s successes and lessons learned to a crowd of about 150 people, including tribal executives from more than a dozen states.

NNASC is structured as a nonprofit organization owned by various tribes that support its mission.

“Without our tribes and corporate sponsors, we wouldn’t exist,” Palmer said at the conference.

To date, Palmer said much of his job has been educating corporate supplier diversity executives about the many unique characteristics of tribes, which are sovereign governments that provide a host of services to their citizens. Moreover, many buyers are surprised to learn that tribes aren’t bound by geographic boundaries or specific industries, and often have diversified business portfolios that “run the gamut” from manufacturing and technology to business and professional services.

“I was naive to the fact that I assumed people working in supplier diversity knew the tribal system, they knew what tribes were,” Palmer said. “That first meeting I have with almost all corporate supplier diversity folks, it’s talking about tribes, it’s talking about the systems that are in place to provide services to its citizens, why tribes exist and those types of things. It’s really important that the education piece is being done.”

Palmer said he’s had productive conversations with corporations

about accepting the NNASC’s certification, especially after educating them about tribes’ challenges under other MBE programs. As well, he cited the early corporate buy-in from the likes of e-commerce giant Amazon.com Inc. and medical device firm Boston Scientific Corp. for opening doors to conversations with other companies.

Both the Amazon and Boston Scientific sponsorships came about as the result of NNASC’s ongoing relationship with the National Veterans Business Development Council, which is serving as a mentor to the Native group, said Palmer, who credited the NVBDC for helping his organization early on to develop its processes.

“We’re very focused, obviously, on the Native-owned piece, and so it’s ensuring first and foremost that those individual Natives are truly Native. They’re not ‘Pretendians,’ they’re people who can prove that they’re Native,” he said. “A certification body such as us, you’ve got to have those strong processes in place because we don’t want to put the companies that we’re partnered with at risk.

For the companies that we’ve certified, we 100% want to know that this is Native-owned, Native-controlled.”

Looking ahead, Palmer sees opportunities in helping tribally held and Native-owned businesses to secure a proportion of corporate diversity spending that more closely aligns with the 2.9% of the U.S. population that identifies as Native.

But he acknowledges that NNASC aims to continue on a path of slow organic growth as more tribes and Native-owned businesses come on board as members and as the organization secures more corporate sponsors.

“Really, at the end of the day, we are the ultimate niche product. We are focused on Native-owned businesses,” he said. “That’s going to cap our growth, but at the same time, that helps us focus on our energy and efforts.”

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PUBLIC SAFETY

26%

Just over a quarter of Americans rate Detroit as a safe place to visit.

27%

Just over a quarter of Americans rate Chicago as a safe place to visit.

51%

A majority of survey respondents said they feel less safe now than a few years ago.

— Gallup, August 2023

— Gallup, August 2023

GETTY IMAGES

— Akron Decides Survey, 2023

Public safety has a perception problem For the Great Lakes region’s biggest cities, crime stats don’t fully capture how people feel It adds up to a curious divergence, not to mention a stubborn problem in a region where cities are trying to emerge from the pandemic and also reverse decades of population loss.

It’s not just safety that’s on the line, it’s civic momentum.

Detroiters are “so invested in a comeback and seeing the city come back to a sense of prominence,” says Zoe Kennedy, who works to stem community violence as public health and safety director of nonprofit Force Detroit. The pandemic interrupted that progress.

In Chicago, during the pandemic “there was a crisis of confidence. People were not confident they were going to have a positive experience” downtown, says Michael Edwards, president and CEO of the Chicago Loop Alliance. But Edwards says the crime data backs up the improved conditions he’s observing.

If people are still scared of visiting the Loop, he says, “it’s a mistaken old idea, a remnant of the pandemic.”

That frames the challenge facing regional city leaders: not only to ensure that their cities are safe but also that they feel safe.

A disconnect between crime perception and data A Gallup poll found large numbers of Americans think crime is worse than last year, despite data such as the number of homicides declining.

Percent of people who say U.S. crime is higher than a year ago 80% 60% Source: Gallup

Chicagoan Lisa Stringer sees the improving crime stats coming out this year — a decline in car thefts, homicides returning to pre-pandemic levels — and she wants to believe. She wants to relax.

But Stringer can’t square the data’s rosy picture with what she sees outside her window in the city’s North Mayfair neighborhood. In the last couple of years, she’s witnessed a break-in at a neighborhood business, seen the dismantling of a stolen car, and heard shooting in the alley behind her home.

Late one night while she drove along Elston Avenue, an SUV pulled alongside her at a stoplight. Two people wearing masks got out and approached her car.

She sped forward, narrowly avoiding a collision while making her escape.

So when she hears reports of a stabilizing city, Stringer is skeptical.

“It’s frustrating when people try to dismiss you and pat you on the head and say you’re being dramatic,” Stringer says.

“You have a chart, but I am telling you that my personal, lived experience in the

last two years is the complete opposite of that. For the first time in my life, I don’t feel safe.”

Often a perception gap exists between how safe city dwellers feel and their statistical risk of victimization. Right now, however, it’s exceptionally wide.

Polls indicate that many Americans share Stringer’s perspective. In the 2023 edition of Gallup’s annual crime survey — the most recent iteration — respondents voiced more pessimism about local and national crime than at any point in the survey’s roughly 20-year history.

Yet according to law enforcement data, crime is receding across the country. Homicides and auto thefts are declining sharply this year, with the number of murders approaching pre-pandemic levels, according to AH Datalytics’ Real-Time Crime Index. A Council on Criminal Justice analysis that focuses on big-city crime shows similar positive trends across the country’s largest metros. The number of homicides is down in three of the Great Lakes region’s largest cities — Cleveland, Detroit and Chicago.

40% 2018 2019 2020 2021 2022 2023

U.S. 12 month rolling homicide total 10,000 8000 6000 2018 2019 2020 2021 2022 2023 2024

Source: Real-Time Crime index

By Steve Hendershot

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PUBLIC SAFETY

What’s driving the gap?

An increasing political dimension drives perceptions of urban

Homicides decline in Chicago, Cleveland and Detroit The number of homicides decreased across the nation in recent years after spiking during the COVID-19 pandemic.

Homicide rate per 100,000 people Chicago 2018 2019

21.4 18.2

2020

28.7

2021

29.3

2022 2023

26.4 22.8

Cleveland 2018 2019

23.1 24.7

2020

42.9

2021

44.5

2022

38.9

2023

39.4

Detroit 2018

37.7

2019

40.4

2020

46.5

2021

43.5

2022 2023

46.2 36.8

Source: FBI, population based on 2020 U.S. census data

That’s easier said than done right now, in part because of a string of high-profile crimes across the region that cut against the crime data’s optimistic narrative. In the early hours of Labor Day, four sleeping passengers on a Chicago Transit Authority train were shot to death.

In July, two were killed and 19 wounded during a shooting at a Detroit block party. On a Saturday night in late June, a gunfight broke out at Cleveland’s most popular beachfront park. All three incidents were horrific and felt even more unsettling because they showed how violence can erupt even in seemingly safe public spaces.

They’re the sorts of crimes that grab hold of the imagination, which can be an especially powerful influence on perceptions.

“The fear of crime that (high-profile incidents) create cannot be offset by a 20% reduction in homicide,” says Charlie Beck, former chief of the Los Angeles Police Department and former interim police superintendent in Chicago.

“Nobody has ever tied their personal feelings of public safety purely to crime stats. They go outside their door and look around.”

crime. For example, Democrats and Democratic-leaning independents were more than three times as likely as their Republican and Republican-leaning counterparts to consider Chicago a safe place to live or visit, according to a different 2023 Gallup Poll. In Detroit, the gap was only a bit more narrow, with Republican or Republican-leaning independents about two and a half times less likely to view the city as safe than Democrats and Democratic-leaning independents. The partisan gap has grown sharply this century: The average divergence in perception across the poll is 29 percentage points, compared to just 2 points in 2006.

But politics and outside opinions don’t explain why many residents of solidly blue cities aren’t feeling safe. Crime ranks as the top reason Detroit residents would consider leaving the city, according to a 2023 survey by the Detroit Chamber of Commerce. In a survey of Chicago voters conducted

by Mason-Dixon Polling & Strategy on behalf of several local media outlets prior to the 2023 mayoral election, crime was the runaway leading issue.

So what gives? Are city residents seeing things that are missing from crime data? Or are their perceptions especially skewed? Several factors may be contributing to

a pronounced safety perception gap:

An environment that feels more chaotic Kenya Valentine is a longtime rider of Chicago’s el trains. Since the pandemic, “there’s been a huge change,” she says. “It’s not safe.”

She says this while standing beneath the tracks at the Red Line’s Wilson stop, where a few days earlier a man fled the train after being stabbed during an afternoon altercation. Yet Valentine’s assessment wasn’t based on witnessing violent crime so much as an uptick in other sorts of rule-breaking, like people smoking on the train or selling drugs at el stations.

Public-transit crime is an issue in Chicago. A September Chicago Tribune analysis found that serious crimes occurring on Chicago Transit Authority trains, buses and stations are near their highest levels since 2000. But riders like Valentine are also noticing the small stuff that doesn’t show up in violent-crime data.

That’s a crucial development, according to Beck, the former Los Angeles police chief.

Since the pandemic, he says, “in the big cities, I think there is a

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PUBLIC SAFETY lot of evidence that people see in their day-to-day lives that shows a lack of control, or a society that is shifting towards less cohesiveness about what’s normal in public spaces.”

The word “normal” is key to thinking about perceptions of safety, because people can feel comfortable in a broad range of environments as long as their surroundings seem predictable and familiar.

For example, Chico Tillmon, executive director of the Community Violence Intervention Leadership Academy, grew up in Chicago’s Austin neighborhood during a violence-plagued period in the 1990s. Yet he felt safe there.

“It wasn’t about Austin being safe. It’s that I knew the blocks, I knew how to maneuver, and I was familiar with the people,” Tillmon says.

Tillmon calls it “adaptation and normalization.” It’s the inverse of what Beck is describing and what people like Kenya Valentine and Lisa Stringer are experiencing: a change in environment that’s so striking that it upends people’s sense of what’s normal — and what’s safe.

How can cities guard against that decreasing sense of environmental control? One obvious an-

The Community Violence Intervention Leadership Academy at the University of Chicago Crime Lab provides a program to educate violence intervention leaders across the country. Those who graduate, including Myesha Watkins (top) from Cleveland and Zoe Kennedy (bottom) from Detroit, have had five months of hands-on education that includes classroom instruction and immersive learning labs. They return to their organizations to expand the efforts in their cities to reduce violence, working with police departments and residents to save lives through strategies and data-driven practices that bridge the safety gap. Vice President Kamala Harris honored the program’s first 31 graduates at a White House ceremony in February to highlight “Community Violence Awareness Week.”

swer is a greater law enforcement presence, but that’s a challenge both in terms of police department manpower and also the fraught relationship between residents and police in many communities. There also are plenty of other options, according to Sandi Price, executive director of the Rogers Park Business Alliance, an economic development group on Chicago’s Far North Side. They range from community gatherings and cleanup events to beautification and infrastructure projects such as murals or the new public plaza unveiled in Rogers Park in early September. They’re projects that “help alleviate the perception that people don’t care,” she says.

Random violence undermines confidence At a Detroit block party over the July Fourth holiday, gunfire killed two and wounded 19. The incident illustrated a troubling trend noted by anti-violence leaders: More dispute-related shootings are occurring in settings where innocent bystanders become victims. The randomness of those events can unnerve people who think of themselves as possessing the street smarts to steer clear of trouble.

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PUBLIC SAFETY “The biggest feeling of being unsafe is that you could be totally innocent, have nothing to do with nothing, and still be a victim of violence,” says Tillmon.

Tillmon is a pioneer in the community violence intervention movement, in which community members intervene to try to head off gun violence before it occurs. FORCE Detroit’s Zoe Kennedy, a graduate of the CVI Leadership Academy that Tillmon leads, says that one of his group’s goals is to ensure that shootings that might claim innocent victims are verboten even in circles where gun violence often occurs, and that the ethic is taking root in parts of the city.

“In my community, shooting up houses, that’s unacceptable,” Kennedy says. “That’s what the community embraced, and that’s the standard we set.”

Neighborhood apps and tech shift perception Security cameras and Neighborhood Watch groups have been around for decades, but their reach — along with the volume of alerts they generated — exploded in recent years thanks to the growing popularity of tech products such as Amazon’s Ring Doorbell. More than 20% of U.S. households have a smart door-

bell, according to research firm Parks Associates, and the market is projected to grow by 33.4% each year through 2030, according to Grand View Research.

Apps such as Citizen and NextDoor also are helping spread awareness of hyperlocal crimes and suspicious activity; NextDoor had 41.8 million weekly active users in 2023.

Chicagoan Luis Martinez uses Ring and NextDoor to track crimes and suspicious activity in his neighborhood, in addition to watching the news.

“I’d rather know something’s going down in my neighborhood than not know and be caught off guard,” he says.

The issue is that people who use those platforms perceive higher rates of crime than those who don’t, according to a study by University of Houston researcher Adam Fetterman, director of the school’s Personality, Emotion, & Social Cognition Lab. “Those push notifications that keep telling you about crime keep it at the top of your mind,” says Fetterman. “Crime rates could be going down in general, but if you’re constantly being told about crime throughout the day, you’re going to have this perception that it’s happening more often.”

Novel, brazen crimes grab extra attention Media coverage, including social media, also elevates perceptions of crime. That’s not a new phenomenon, but it may be surging thanks to the camera- and feed-friendly nature of some pandemic- and post-pandemic-era crime. From downtown street racing to smash-and-grab burglaries in high-profile shopping districts, to a recent incident in Detroit when a large crowd surrounded a city bus and cheered as two women twerked on the hood, these incidents draw eyeballs to familiar scenes where the urban environment appears out of control.

“It’s, ‘I know exactly where this is happening, so it’s easy for me to visualize it,’” explains David Ewoldsen, a professor at Michigan State University who studies media and psychology. “It just makes it much more salient, much more arousing.”

Could crime be underreported?

Could the public-safety perception gap be explained by shortcomings in data collection? Is it possible that elevated levels of crime aren’t being reported or recorded?

Not likely, at least for the highest-profile crimes.

“There aren’t a lot of homicides that are going unreported,” says Kim Smith, director of national programs and external engagement at the University of Chicago Crime Lab. Murders, along with car thefts, are reliably reported across different time periods and regions, one reason why they serve as benchmark crime statistics.

However, it’s more plausible that other types of crimes are underreported. For example, Smith cites sexual assault as a chronically underreported type of crime. And some pandemic-era changes such as smaller police forces (Chicago had 12% fewer sworn officers in July 2024 compared to July 2019, according to city data), along with diminished trust in law enforcement, could plausibly contribute to a decrease in reports of, say, property crime. “The higher confidence people have in police, the more they report crime,” says Beck.

Still, an analysis from AH Datalytics’ Jeff Asher found that while current trends could spark reporting vagaries, they’re likely too small to significantly skew the gains shown in recent crime data.

Sentiment can be a lagging indicator Chicagoan Stringer, describing her escape from a would-be car-

jacking, says, “This is something that sticks with you on a whole different level.”

The psychological impact of experiencing crime or intense danger can be long-lasting and affect perceptions of safety even amid an increasingly safe environment. In other words, it might take time for perception to catch up with a safer reality, especially given that “safer” is a matter of degrees, particularly in the communities that deal with the brunt of crime and violence.

“Exposure is a big part of this story — the lasting and longer-term impacts of exposure to gun violence,” says the University of Chicago’s Smith.

The challenge facing cities like Chicago, Detroit and Cleveland, then, isn’t as simple as bending people’s understanding of their environment into alignment with a new, safer reality. It’s deeper: It’s about reclaiming part of society that eroded during the pandemic. It’s about healing.

So it seems fitting that next to the same Red Line stop in Chicago where two days earlier a stabbing victim fled the train, an artist painted a mural on the side of a brick building. The image depicts a young woman with her eyes closed and face overcome with emotion. She’s surrounded by blooming flowers.

It’s titled “Regrowth.”

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‘Multi-layered effort’ key for public safety efforts in downtown Grand Rapids

By Elizabeth Schanz

H

ow to make Grand Rapids a safer place for all — and have public perception align with improved levels of safety — comes down to efforts between police, organizations, leaders and residents that address issues as they arise, both residents and city leaders say, and everyone has a role to play in achieving that.

“It’s very easy to lose the perception of a clean, healthy and safe community …,” said Josh Lunger, vice president of government affairs for the Grand Rapids Area Chamber of Commerce. “At the same time, once you regress, it’s very hard to climb your way out of that perception. It’s a challenging thing … it’s a multi-layered effort.”

Data show that crime has gone down, but skepticism over safety has grown since 2020, with 63% of Americans describing the crime problem in the U.S. as either extremely or very serious, according to a 2023 Gallup poll.

The contrast between actual crime levels and how people feel about their safety can differ for many reasons, including personal experience, heightened attention to specific areas of concern and preconceived notions of danger or policing. Grand Rapids leaders are concentrating on increasing community efforts and internal work that aim to narrow that gap between reality and perceptions.

Over the last several years, Grand Rapids has grappled with complicated issues of public safety, including high-profile shootings and ongoing concerns about the effects of homelessness, the safety of vulnerable populations and reducing lower-level crimes that are perceived as nuisances.

Overall crime is down this year from recent years, according to law enforcement, and includes a significant decrease in violent crime, said Eric Winstrom, chief of Grand Rapids Police Department. Since the start of 2024, there have been seven homicides in the city. In 2020, there were 38.

But that reduction doesn’t necessarily change people’s views, Winstrom said.

“I think part of the issue there is that there’s a little bit of lag between perception and reality, and that is crowd,” he said. “Not everybody goes on the publicly available data dashboard and looks at our numbers, or not everybody goes to the Public Safety Committee hearings (at city council) to hear actual data, or not everybody talks to me. … I think it’s just a perception catching up with reality.”

Tami VandenBerg, a co-owner and cofounder of The Meanwhile Bar and The Pyramid Scheme, believes that gap is sometimes intentional, and fears around public safety can be exploited and blown out of proportion, particularly during political campaigns.

She noted that during a city commission race in 2022, Safe GR — a dark money group that worked with a Grand Rapids Chamber lobbyist — was placing ads, fliers and billboards (one stood next to the Pyramid Scheme) stating that “Grand Rapids has a crime problem.”

“Having that billboard directly next to your business that is downtown, you know, it’s not great for people coming in from out of town to go to a concert. … That kind of stuff is not helpful to anybody, except for the people trying to fearmonger,” VandenBerg said.

The work of public safety is a collaborative

Downtown Grand Rapids. | GETTY IMAGES

effort between community organizations, the public, and private and nonprofit sectors, said Bill Kirk, director of communications for Downtown Grand Rapids Inc. (DGRI), an organization focused on managing programs for and encouraging investment in the city.

Efforts across various facets of the community are a promising step in working through systemic issues and shaping ideas around Grand Rapids, Kirk said.

“It’s not just organizations like DGRI or the city government or the police department coming together. This is business owners and residents and the Grand Rapids Chamber of Commerce and other partners … we really come together and try to solve them together, as opposed to being siloed and just trying to do things on our own,” Kirk said.

Public safety is the second largest issue, behind the economy, that Grand Rapids residents say they care about, with 88% of people saying it is important or essential, according to the 2024 National Community

Survey, a questionnaire that measures a community’s livability.

The survey found that 62% of respondents said that safety in Grand Rapids is excellent or good — a number that has remained mostly consistent since 2018 — despite the decrease in crime in the city. The view of the safety quality ranks lower than the survey’s benchmark of 600 communities across the U.S. and 38 communities of comparable size of Grand Rapids.

NCS found that 57% viewed the quality of police and sheriff services positively — consistent with the 2022 survey — but that was a 6% decrease from 2018 when it was at 63%.

After the April 2022 death of Patrick Lyoya and the arrest of and charges against Grand Rapids Officer Christopher Schurr, the department has tried to rebuild trust with the community and change the force’s culture, Winstrom said.

It has recently changed its training and best practices, focused on de-escalation and promoted greater relationships with

Tami VandenBerg, a co-owner and cofounder of The Meanwhile Bar and The Pyramid Scheme, believes a key component to improve and promote safety for everyone in Grand Rapids is “seeing each other as human beings” to work toward a common goal. | SETH THOMPSON

the community, he said. Additionally, the department added three full-time social workers since July 2022 who assist on calls, especially those related to mental health.

“Over the past couple years, I’ve seen a change in the city, how the neighborhoods react (to the police department). (Before) I think it had a bit of an ‘us against them feeling’ with the police department being more of an occupying army than an entity that was in partnership,” Winstrom said.

Sam Cummings, managing partner at CWD Real Estate Investment who has been in downtown Grand Rapids for more than 30 years, champions efforts including ordinances regulating private property in public spaces that were adopted after discussions about homeless populations.

As a property owner and manager, Cummings and his team had concerns, such as people setting fires in buildings, petty larceny and breaking and entering. He also believes crime concerns have “absolutely” led to property vacancies downtown.

“The period between 2020 and 2023 … was I would say a low point for us. … We saw a denigration of the public realm,” Cummings said. Over the past year, he believes many of these instances have gone down, which he attributes to officials’ enforcing regulations and standards.

But attitudes need to change, too. VandenBerg believes that comprehensive efforts around public safety come down to “seeing each other as human beings” and getting a variety of groups involved, which she feels is currently lacking in Grand Rapids.

“If there was just a really concerted effort with very serious people, you know, I think we could make a massive difference in the situation,” VandenBerg said.

It’s a message that could resonate to visitors and residents alike.

“I think (Grand Rapids) is a very safe city, and I think it’s getting safer every day,” Winstrom said. “I see us kind of like the jewel of the Midwest, a model of how to have a beautiful downtown, a beautiful outside of downtown and safety for everyone.”

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PUBLIC SAFETY | COMMENTARY

Crime is not a fact of life, it’s a disruption

C

O

BLOOMBERG

D

and everyone should be etroit, like other indignant toward any inmajor cities, is still dividual that finds it apexperiencing the propriate to harm another transition from preperson.

COVID norms.

There was a time when The past few years have society shamed people for given rise to a sense of fear, even minor misconduct. helplessness and restlessBut our efforts to explain ness within society that ulthe underpinnings of timately resulted in an in- James E. crime seems to have given creased awareness of White is a rise to senseless reasons mental health issues. This Detroit native and baseless excuses. Socreated an environment and has been ciety’s tolerance only grew that led to skyrocketing chief of the from there. crime and a new norm of police This is not to say that all tolerance and insensitivity department crime is to be treated to violence. Coupled with since 2021. equally. There are complex the murder of George Floyd, a new distrust for law enforce- social issues that give rise to crime. ment emerged, challenging every As a certified mental health counpolice chief around the country to selor, I see crime through a very rebuild their pillars of confidence unique lens and understand that mental health issues can lead to erwithin their own communities.

Today, we talk about shootings ratic and unpredictable behavior and stabbings like they are normal, that results in criminal acts.

Although often the first to be everyday events. People have grown numb to senseless violence, and called to the scene, police departsome even find violence to be an ac- ments in general are ill-suited to ceptable form of problem-solving. address people in mental health In the past, when two people in a crisis. The department has estabdating relationship simply broke up lished mental health co-response when things weren’t working out, teams and has partnered with rethe relationship ended, some on puted organizations and agencies better terms than others. But, more in its effort to create effective stratand more we are seeing people egies addressing mental health. turning to (often times fatal) acts of While they have been highly sucviolence rather than simply moving cessful, more family and government support is needed. on with their lives.

Addressing the former, residents The Detroit Police Department is doing its part to keep the confi- must make their mental health, as dence of its community while de- well as the mental health of their terring crime and vindicating the families a high priority. If a family rights of individuals who have been member is struggling with mental victimized by crime. With respect health issues, please seek the apto community, the department propriate help and take an active hosts numerous community events role in their treatment. Many peoranging from procedural justice ple afflicted with mental health isseminars to organized walks in the sues can (and do) succeed with the community. The goal is to provide proper family support.

My hope is that everyone will asa forum for all aspects of Detroit’s sume personal responsibility for unique and diverse population.

On the issue of crime, Detroit has the safety of their loved ones, espeseen historical reductions in violent cially when they cannot support crime. In the 2023, we recorded the themselves.

Turning now to the latter, I firmlowest number of homicides since 1966 as well as double-digit de- ly believe more financial support creases in nonfatal shootings and is needed to address mental health carjackings. We are on track for even in the community. Although the further reductions, as evidenced by recent opening of the 707 Crisis the fact that, as of Sept. 10, we are Care Center is promising, more down in all categories of Part 1 and similar facilities are needed crimes, including a 21% reduction throughout the region. As previin criminal homicides, a 16% reduc- ously stated, not all crime is creattion in sex crimes, a 25% reduction ed equal. Where mental health in non-fatal shootings, a 36% reduc- gives rise to a criminal act, our retion in carjackings, and a 14% re- sponse should address, at least in duction in motor vehicle thefts. This part, the underlying condition.

Counseling and other forms of speaks volumes of the hardworking members of the Detroit Police De- treatment should be required partment as well as the work of the terms of probation or release. If department’s senior managers and people and their families are willing to commit to ensuring their crime strategists.

As promising as these statistics own mental health, they should be are, we cannot afford to celebrate. afforded the opportunity.

My hope is that the residents One senseless act of violence is one too many, and we can never afford will embrace the foregoing conas a society to become tolerant of cepts: intolerance toward sensecrime or establish it as a norm. less violence, owning the mental Crime is not a part of life; it is a dis- health and well-being of our loved ruption thereof. Residents must em- ones, and greater support of the brace their security and their safety, mentally ill.

Crime in Detroit is declining; four ways police have helped

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double the number they rime in Detroit is were — a huge improvedeclining again. ment. This, in turn, Nearly all major points to other things categories of crime deDetroit’s police are docreased in the first six ing well. These include: months of this year. Mur◗ Targeting high crime der, sexual assault and robberies, were all down areas. For over a decade — by double digits year now they have been to date. Among violent Lyke identifying hot spots for crime, only simple as- Thompson is crime and completing sault increased. Aggra- the director of proactive patrols in vated assault is down re- Wayne State those areas, providing cently, but not below University’s more protection for citipre-COVID levels. zens and increasing the Center for Among property Urban Studies risk for criminals who crimes, damage to prop- and is a might be planning a erty dropped by double professor of crime. The criminals ofdigits, while burglary political ten decide that the and larceny fell by single science. crime is too risky, and digits so far this year. those decisions lead to Auto theft peaked in late 2022, reduced crime rates. but has come down since then, ◗ Using technology and working though police are challenged by with community organizations to new technological techniques reduce violence. The city has exthat thieves are using. perimented with using cameras These declines are good news at gas stations and other locafor Detroit, helping to overcome a tions, and it has used a gunshot bad reputation that has held De- detection system to identify troit back for decades. where guns are fired in the city so Note, though, the “again.” they can target crimes as they ocDetroit, like many major cities, cur. At the same time they have had seen massive declines in engaged residents in some neighcrime over recent decades until borhoods to identify and engage these were halted by the people at the greatest risk of vioCOVID-19 pandemic and its af- lence, who are then helped to termath. COVID reversed the de- pursue a different path. creases for several years, but then ◗ Tracking down repeat offendcrime levels headed back down. ers. Criminals on parole or proFBI data on crime levels lags bation, who commit additional somewhat, but it confirms a tem- crimes, now are far more likely to porary COVID increase that has find themselves back in police been replaced by a post-COVID custody. Partly this because of indecrease in crime rates in De- creasing close cooperation betroit. tween police and corrections ofThe FBI data also suggests one ficers. Higher quality data cause for decrease, an increase in tracking of the probationers and clearance rates (i.e., the extent to parolees and their crimes accelwhich a perpetrator is caught). erates this process.

This is one several causes of the ◗ Sustained partnerships with drop in crime. The clearance rate federal, state and local agencies increase indicates that the police that include aggressive investigaare getting better at their jobs. tion and prosecution of the relaThey don’t catch every perpe- tively small number of individutrator, but they are catching about als responsible for the most

violence in the community.

One important reason that crime is falling in Detroit is beyond the control of the police.

This is a reduction in the number and percentage of youth in the city. The 2010 Census and the 2022 American Community Survey document a decline in the number of children in Detroit and a stronger decline in youth 15 to 24. This is the cohort that has historically had the most difficulty getting jobs and who have long been represented disproportionately in crimes. These trends are projected to continue with Detroit’s population gradually getting older with fewer and fewer youth.

A final question: Are Detroiters recognizing these changes? Two surveys by the University of Michigan indicate that Detroiters are seeing the declines that the crime statistics show. Comparing 2019 data to 2021 data the UM data indicates that fewer Detroiters were victims of crime in each category from auto theft to physical attacks. A majority or nearly a majority said police were doing a good job in 2018, 2020 and 2021.

Not all were so positive. Younger people, in particular, were far less likely to believe that the police were doing a good job. The data indicate young people are more likely to have had “forceful” interactions with the police.

Overall, Detroit police are now more representative of the people they police. They are better trained. They use more technology. Many are good at engaging with the community. They have fewer youth to police. The economy has been good, reducing the negative impact of unemployment on crime. All these trends are converging to reduce crime levels. It’s time to applaud the progress and find ever more new and inventive ways to continue the positive trends in the city.

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COMMENTARY | PUBLIC SAFETY

Communities could make more use of crime-solving tools

BLOOMBERG

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is left behind or that the ur communities crime is clearly witface a gun vionessed. lence crisis, in New research from part, because we face a Joyce uncovered another clearance rate crisis. reason we aren’t solving Knowing that less than more gun homicides in half of all gun homicides Illinois: Roughly a third of in America are solved by law enforcement agenpolice, you would expect cies statewide are not law enforcement officials Tim Daly is signed up for the primary to use every tool available director of the federal tools that help to solve these cases. But Gun Violence new research from the Prevention and solve gun crimes. And many of the rest are not Joyce Foundation found Justice Reform that, in Illinois at least, program at the maximizing their use.

These crime gun intellithat’s not true.

Joyce gence tools are housed at In Chicago, the clear- Foundation. the Bureau of Alcohol, ance rate is even more Joyce is a Tobacco, Firearms and dire: Less than one-third sponsor of of homicides are cleared Crain’s Forum. Explosives (ATF), and include eTrace, Collective by arrest. Chicagoans also experience stark racial dis- Data Sharing (CDS), the National parities in homicide clearance Integrated Ballistic Information rates. This lack of accountability Network (NIBIN) and the NIBIN erodes police-community trust, Enforcement Support System making it harder for police to in- (NESS) — and they are incredibly vestigate shootings — creating a effective.

Together, they allow law envicious cycle that perpetuates vioforcement to analyze crime guns, lence.

Gun homicides are especially shell casings and police records. difficult to solve. Using a gun al- They empower law enforcement lows for greater distance between to quickly identify shooters, like the shooter and victim, reducing the suspected Highland Park pathe likelihood that DNA evidence rade shooter in 2022. They also al-

low police to prosecute straw purchasers, like the individual who illegally bought the gun that murdered Chicago police officer Ella French. Most importantly, these crime gun intelligence tools have been shown to increase clearance rates for gun crimes.

To maximize the impact of these tools in Illinois, Attorney General Kwame Raoul recently launched Crime Gun Connect, an innovative platform that brings together statewide data and captures key patterns on the sources of crime guns. The U.S. Department of Justice also established a new Crime Gun Intelligence Center (CGIC) in Chicago, enhancing law enforcement’s abilities here. Milwaukee’s CGIC, on which Chicago’s is modeled, improved the clearance rate there for nonfatal shootings.

Still, Illinois police are not consistently using some of the most effective tools to solve gun crime.

Only 579 of approximately 900 agencies statewide are signed up for eTrace. Of those agencies, only 287 share their trace data with other agencies in the state via collective data sharing.

This lack of participation hampers investigations and under-

Flowers are left for victims of the 4th of July mass shooting in downtown Highland Park, Illinois on July 5, 2022. | GETTY IMAGES

mines safety. It also limits the effectiveness of efforts like Crime Gun Connect and the Chicago CGIC. Policymakers and law enforcement leaders must find ways to prioritize the use of these tools and eliminate barriers to doing so.

First, every law enforcement agency in the state should sign up for these tools. If they don’t, the

state should mandate it. Not surprisingly, states that require such participation — New Jersey, North Carolina and Virginia — have some of the highest law enforcement participation rates in the country.

Second, we need to make sure police are effectively using them.

Among those agencies signed up, not all recovered crime guns are traced. Model policies and protocols should be developed to ensure all recovered crime guns are traced via eTrace, all recovered ballistic evidence be submitted into NIBIN, and that agencies are fully participating in efforts like Crime Gun Connect and the Chicago CGIC. Finally, the state must invest in these tools. It can do so through increased training for local law enforcement on how best to use them. The state should also fund outreach and awareness campaigns to increase use.

Gun violence is hard enough to solve in this country as it is. If there are tools available to law enforcement to do something about it, we need to do everything we can to ensure they’re being used. Completely and effectively.

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now peotter ologing ave nothe loynds ime the new nue September 30, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 15

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PUBLIC SAFETY | COMMENTARY

Justice is complicated — we must hold it accountable

GETTY IMAGES

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criminal justice agents he criminal justice capture the general pubsystem is separated lic’s attention and serve to into the three compush criminal justice sysponents of the police, tem policy-making to the courts and corrections. forefront of the political Most of the decision makagenda. ing within these compoThe 24-hour news cycle nents takes place at the and social media contriblocal and state level. Many ute to an elevated level of citizens have strong per- John P. Walsh and Nancy citizen exposure to these ceptions concerning the Hogan are professors at Ferris incidents. Police use-ofvalidity and reliability State University’s School of surrounding decision Criminal Justice. Walsh is chair of force encounters dominate conversations across making by the line-level the department and Hogan is its a wider swath of the pubagents who work within graduate program coordinator. lic than ever before. Race, this system.

These value judgments have taken center ethnicity and justice continues to be a volastage in public discourse. Fueled by politi- tile issue. Yet, these are important discuscal rhetoric, these conversations will be- sions within democracy and the pursuit of come even more magnified as we head into justice.

For most citizens, police officers are the the election season. While agreement and disagreement vary, we view this discourse most common representatives of criminal as a productive and essential part of citizen- justice they see regularly. Law enforcement navigates the expectation of maintaining ship within an active democracy.

As this discourse continues, we find our- order while protecting citizens’ individual selves, as many fellow citizens do, navigat- liberty. Most of the time they succeed in ing through the daily perceptions and reali- these navigations. Sometimes they fail and, unfortunately, sometimes those failures ties of the criminal justice system.

Many citizens’ perceptions of the crimi- have unjust and tragic consequences.

The criminal justice system in the United nal justice system are rooted in vicarious experiences related from friends, family States is dynamic in that it reacts to the conand media. Celebrated cases revolving stantly changing definitions of how we as around high-level felony activity and/or citizens define democracy at the local and poor discretionary decisions by line-level state level. Guided by the U.S. Constitution,

and the separation of powers that rest within that document, local level criminal justice system actors and agencies use organizational and individual discretion attempting to rationally make sense of the limited information they are presented with when interacting with citizens who violate or allegedly violate law and order at the neighborhood level.

Police, prosecutors, judges, correctional officials, juvenile justice agents and a periphery of social service agencies are all making discretionary decisions that many times have consequences upon other parts of the system. Not only are these agencies interrelated but influence each other. For example, police decisions to arrest then affect prosecutor loads. Prosecutorial decisions to charge affect the judiciary whereas

judges’ decisions to convict and sentence affect corrections.

Thus, the purpose of the criminal justice system and the individuals who work within this system is to serve the goal of ensuring our democracy within the rule of law. This is an ongoing process whereby individual and organizational discretionary decisions are reviewed, assessed and acted upon mostly at the local and state levels.

As citizens within an active democracy, we must remain cognizant of the enormous number of times our justice system gets the decision correct and vigilant in confronting those instances when it does not. Holding ourselves, as well as criminal justice agents and organizations, accountable for actively addressing equal treatment within this system is essential for a healthy democracy.

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You’re invited to a ribbon cutting and tour!

Oct 29 | 11:45 AM - 12:30 PM

Join us for the ribbon cutting and tour of the Orthopedic Center and Surgery Center at Westpark. A destination center for comprehensive, high quality, lower cost outpatient orthopedic care for West Michigan and beyond.

• Expert orthopedic care from more than 20 Shoreline Orthopaedics’ providers • Holland Hospital PT in state-of-the-art space with return to work/sport rehab • Orthopedic urgent care • Surgery Center at Westpark provides outpatient orthopedic surgery featuring Mako SmartRobotics™ Meet the providers, tour the new state-of-the-art facility and learn about the benefits for you, your employees and the community. Light lunch will be provided.

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GRAND HAVEN PRIMARY CARE

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QR codes on vacant storefronts aim to spur activity

By Abby Poirier

QR codes posted on vacant retail storefronts in downtown Grand Rapids are part of the city’s effort to generate public input on how the empty spaces should be repurposed.

When scanned by a phone camera, the QR codes lead to an online survey asking respondents what brands, amenities, products or services they’d most like to see in the vacant space. It also asks how often they’d frequent such a business and whether they live or work in the city.

“It’s almost so simple that I feel like it works,” said Richard App, whose retail retention and attraction specialist role is shared between the city, the Grand Rapids Area Chamber of Commerce and Downtown Grand Rapids Inc. The survey, which launched during the start of ArtPrize, is intended to both give the public a say in what businesses are attractive downtown and also collect data for brokers looking to fill vacant spaces.

App hopes the data can be used to gain a clearer picture of what will be most successful in Grand Rapids.

“It’s all about the data,” he said.

“As we gather the information, we can go to the building owners,

The QR code on the former Forty Pearl restaurant links to a survey asking respondents about what they’d like to see there. | ABBY POIRIER

brokers, property managers, and then to those stores.”

According to DGRI’s monthly Downtown Vitals Report, storefront vacancy rates increased by 6% in August over July, and are 5% higher than the two-year average.

So far this year, 12 storefronts have closed in downtown Grand Rapids, seven of which were food and beverage. The downtown area has a storefront vacancy rate of 21%.

Vacant spaces represented in the survey include the former Grand Rapids Brewing Company space at 1 Ionia Ave. SW, where the taproom permanently closed

this spring. Other locations include 15 Ionia Ave. SW, formerly home to brunch restaurant Daisies Place, and 40 Pearl St. NW, where wine bar Forty Pearl closed last month.

The QR codes also are posted at the former Stan’s Tacos at 67 Ottawa Ave. SW and 146 Monroe Center, which was previously occupied by lunch restaurant Freshii that closed late last year.

App noted that the city has changed significantly since he took on his current role, noting that “four and a half years (ago) I would never have thought that there

The Freshii location on Monroe Center, which closed late last year, also features a QR code. | ABBY POIRIER

would be a place like (Tone Chasers) that just opened downtown.

It’s really cool, and I believe it could work. I think what we don’t need to do is act like we’re the experts, and (instead) ask people, because there’s no wrong answer.”

In talking with locals, App said bookstores, women’s shoe stores, urban clothing stores and stores that deal in analog media and products, like records and VHS tapes, are most commonly suggested to fill vacant spaces downtown.

He believes this is a reflection of the younger demographic growing in the area.

In 2012, 28.2% of the population in Kent County was between 20 and 39 years old. In 2022, that age group represented 30% of the population, according to U.S. Census Bureau data.

“A lot of the businesses that have opened in the last few years reflect that (growing demographic),” App said. “The amount of vintage and upcycling stores that we have checks the boxes for sustainability. The new vintage guitar store downtown is the same thing.

“A lot of times people say, ‘Well, nobody ever asked me.’ I’m asking everybody.”

SPONSORED CONTENT

Rockford’s Precision Services team: Tailored solutions for every construction need Streamlining projects for growth and efficiency in West Michigan

By Rockford Construction

I

n West Michigan, the downtown skyline is a testament to the region’s evolving landscape, with both prominent new projects and enhancements to iconic structures making headlines. However, it’s not just the high-profile developments that shape the community; numerous smaller-scale, less visible commercial construction projects are also having a significant impact on the local economy, driving growth and stability.

For many businesses, undertaking a construction project without a dedicated facilities team or owner’s representative can be a daunting challenge. The complexities of managing day-to-day operations while overseeing construction can be overwhelming. Companies may lack the necessary personnel or specialized skills for effective project management, engineering or trades, often leading to reliance on subcontractors and potential coordination issues that may increase cost. Furthermore, managing multiple projects simultaneously can stretch a company’s resources thin, affecting quality and efficiency.

Precision Services team Enter Rockford Construction’s Precision Services team—a solution for companies seeking a nimble, turnkey approach to construction projects. From refreshing existing spaces to erecting brand-new buildings, Rockford’s Precision Services team tailors its approach to meet the unique needs of each client, ensuring a seamless and effective experience.

“Our extensive experience on projects ranging from 500 square feet to 500,000 square feet allows us to deliver quality, excellence and beautiful outcomes across all project types and sizes,” said Rockford’s President and Chief Operating Officer, Shane Napper.

“Our Precision Services team has performed work throughout the state, creating a personalized experience while ensuring unique needs are met with a turnkey approach so businesses can stay focused on their daily operations.”

The Precision Services team has an impressive track record, having completed diverse projects including those in the restaurant,

hospitality, academic, healthcare and commercial sectors. Clients served include Huntington Bank, Grand Rapids Christian Schools, Amway Grand Plaza Hotel, Van Andel Arena, Big Mini Putt and Corewell Health.

Streamlined, in-house services For many companies, navigating the array of professional services and trade contractors involved in construction can be intimidating, especially if it’s their first project. To simplify this process, Rockford’s Precision Services team offers a comprehensive range of in-house services. This includes architectural and interior design, budgeting and estimating, skilled trades, custom millwork and carpentry. As a result, projects are completed faster and more costeffectively.

“The goal of our team is to remain nimble and adaptable, providing clients with everything they need and nothing they don’t,” said Vice President, Jason Longo. “In-house management of resources simplifies the construction process and

Rockford’s Precision Services team manages a wide range of projects including those in the restaurant, hospitality, academic, healthcare and commercial sectors.

enhances quality control to exceed client expectations.”

This customized approach is backed by the strength and extensive experience of Rockford Construction, one of the Midwest’s leading construction management firms. By offering a simplified service model through the Precision Services team, Rockford delivers faster, more cost-effective project completion.

“Our decades in the business enable us to provide a streamlined service model through Rockford’s Precision Services team, ensuring excellent results while allowing clients to focus on what matters most—their business,” said Napper. rockfordconstruction.com/ markets/precision-services

CRAIN’S CONTENT STUDIO September 30, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 17

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BREAKING NEWS AS IT HAPPENS.

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

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SPONSORED CONTENT

MADE IN WEST MICHIGAN SPOTLIGHT West Michigan’s business climate, community leadership and high quality of life make it a magnet for talent and businesses.

international companies are located here, as well as four of Forbes’s Largest Private Companies.

West Michigan manufacturing businesses are world-class leaders in technology, advanced manufacturing, health sciences, furniture, medical devices, food processing and agribusiness. According to The Right Place, more than 130

Read to find out about what companies like Cleanrooms, Disher and Steelcase are making here, and visit rightplace.org to learn more about how to find your own business success in West Michigan.

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SPONSORED CONTENT

The Right Place’s Manufacturers Council continues to drive the region’s economy forward

Learn how you can join a trusted group of local manufacturing leaders focused on supporting the manufacturing sector

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he Greater Grand Rapids region is home to one of the nation’s largest and most diverse advanced manufacturing sectors.

This sector remains the heart of the region’s economy, with 20% of jobs in advanced manufacturing. While we are known for automotive and office furniture, we’re also a national leader in plastics, biopharmaceuticals, medical devices, aerospace, and more. Advanced manufacturing has undergone many transformations over the past few decades, such as the Toyota Production System and lean manufacturing principles during the 1970s and 80s, to the digital transformation we’re undergoing now.

For over 30 years, The Right Place’s Manufacturers Council has worked collaboratively to lead the advanced manufacturing sector through these shifts and improve the economy of the Greater Grand Rapids Region.

The Council’s members have a collective vision and common purpose to advance the region as a global

center of manufacturing excellence, and they work collaboratively to deliver prosperity and solutions to their members.

Most recently, the Manufacturers Council led the development of the region’s AI Roadmap for Manufacturers. Designed by manufacturers in our community, this roadmap offers not just generic AI advice, but insights specifically curated by and for local manufacturers. All with the aim of fostering regional economic growth through AI. This report will allow local manufacturers to pinpoint where they are in their AI adoption journey and identify how they integrate AI both internally and in partnership with fellow manufacturers across the region.

The AI Roadmap is just one recent example of how Manufacturers Council members catalyze transformational change in our region’s advanced manufacturing economy.

The members of the Council are continuously working to promote,

facilitate, enable, and advocate for advancing a “best in class” manufacturing sector.

Members volunteer from a diverse assortment of West Michigan manufacturing owners and top executives who are willing to actively support the mission through a demonstrated commitment to world-class manufacturing and willingness to engage with peers. Here are a couple of the current working groups: • Talent Working Group: This group works to improve the community workforce development system to better prepare the future local talent pool; particularly through the Discover Manufacturing website: www.discover-manufacturing.com.

• Best in Class Knowledge Sharing Working Group: This working group utilizes existing programs more effectively, and establishes user groups and education forums, such as the Continuous Improvement Activities work group.

Members of this council, whether competitors or not, have a drive for strong collaboration that allows for learning and transparency. “Membership in the council allows this

LEARN MORE For more information on joining the Manufacturers Council or its working group activities, contact The Right Place by calling 616-301-6247, or visit our website, www.rightplace.org.

network of trusted peers to share best practices, work together to solve common challenges, learn from one another, and advance the industry in Greater Grand Rapids,” said Chris Bardeggia, Vice President, Operations Excellence at Steelcase and Chair of the Manufacturers Council.

The Manufacturers Council is currently accepting new members. If you’re interested in becoming part of a trusted group of leaders who focus on solving common challenges and being the voice of manufacturing in the region, membership in the council may be the right fit for you.

Educating. Collaborating. Growing.

Since 1989, The Right Place/MMTC-West Manufacturers Council has worked to strengthen the West Michigan region as an international center for manufacturing innovation and excellence.

Today, 37 leading manufacturers in West Michigan share best practices in an environment of open collaboration, and provide networking opportunities with the region’s expansive manufacturing supply chain.

Lean Culture – Learn about establishing a “culture” of lean.

Talent Development – Provide forums for resolving talent and HR issues facing manufacturers today.

Innovation Cooperative –Collaborate with companies to enhance the innovation process and advanced development for you company.

To join The Right Place/MMTC-West Manufacturers Council, or for more information on the council’s work, contact us at:

616.301.6247 or thecenter@rightplace.org

ADAC Automotive Inc. Grand Rapids, MI

20 | MADE IN MICHIGAN

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MADE IN WEST MICHIGAN SPOTLIGHT

SPONSORED CONTENT

4939 Starr Street SE, Grand Rapids, MI 49512 • cleanroomsint.com • 877-380-1860 CleanRooms International exists to be a conduit to human innovation – creating environments that enable, safeguard, and inspire work that moves the world forward. Serving inventive customers requires versatile solutions. In addition to our cleanroom portfolio, we are experienced with customizing, reconfiguring, and designing components to serve your needs, no matter how unique or unusual.

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EXPERTISE: We design and produce one of the industry’s most extensive catalogs of cleanroom solutions and components, workstations, and air handling equipment. We also offer accredited testing, certification, and consulting services. We treat our customers as partners. Our goal isn’t just to supply quality products or design effective solutions – we work to create reliable, helpful, and transparent experience from concept to completion.

Stainless steel, battery powered mobile HEPA cart for transferring CLIENTS/MARKET REACH: Cleanrooms have been a catalyst products from a cleanroom through a “dirty” space and into another cleanroom. Photo: Property of CleanRooms International. for technological progress since their invention. As designers and engineers of those environments, we have equipped some of the world’s most daring and creative organizations, from medical devices to cutting-edge electronics to aerospace launches and food production.

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CERTIFICATIONS AND COMPLIANCE: • Industry-specific certifications NEBB and CETA

Softwall cleanroom on castors creating an ISO 6-8 environment.

Photo: Property of CleanRooms International.

TIM WERKEMA President & CEO

BRET ASPER Chief Operating Officer

Tim joined CleanRooms International in 1997 with an initial position in the Sales Department and has hands-on experience in all departments of CRI. He became a minority shareholder in 2001 and then majority shareholder in 2007 when he was named President & CEO. Tim is proud to support the dedicated team at CRI, providing Spaces for Human Innovation to multiple industries.

Bret joined CleanRooms International as the COO in April of 2018. CleanRooms International is dedicated to providing innovative cleanroom environments and cleanroom products to a wide variety of industries.

Prior to joining CleanRooms International he held positions in the Food Distribution and Healthcare industries.

Tim graduated in 1993 from the Eli Broad College of Busineess at Michigan State University earning a Bachelor of Arts degree with a major in Finance.

Before joining CleanRooms International, Bret was CFO of ETNA Supply where he used his financial and interpersonal skills to support the operations of this Grand Rapids company. Prior to joining ETNA, Bret was the VP of Finance for Aspen Surgical Products and was responsible for the financial activities of the company as well as supporting the M&A activity. Previous to Aspen, Bret was the Controller at den Dulk Dairy Farms and was responsible for the financial operations for multiple dairy and agricultural entities.

Bret earned his degree in Accounting from Western Michigan University in 1993 and earned his CMA certification in March of 2003.

Modular hardwall cleanroom from ISO 5 to 8.

Photo: Property of CleanRooms International.

MADE IN MICHIGAN | 21

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MADE IN WEST MICHIGAN SPOTLIGHT

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125 CORE EMPLOYEES, AND APPROXIMATELY 50 IN OUR DISHER EXTENDED NETWORK (DEN)

FOUNDED IN 2000 DISHER holds two company offsites every year to support their mission, profit, and growth philosophy.

CAREERS disher.com/open-disher-jobs/

LEADERSHIP

JOE DYER President

INDUSTRY/SECTORS Medical, Automotive, Furniture, Food/Ag, Consumer Goods, Mobility, Industrial, Pharmaceutical, Alternative Energy, Aerospace, Defense, B2B, Nonprofit

WHAT WE DO HISTORY: DISHER has a positive history of exceptional performance supported by a mission, profit, and growth culture.

In 2000, Jeff Disher left his comfortable engineering job at Prince Corporation. With a young wife and growing family, he took a chance and started Disher Design and Development. From this one-person operation with one offering (engineering), DISHER has grown to a team of over 125+ people and over six solution areas: product development, engineering, manufacturing tech, software/ hardware, talent recruitment, and business consulting.

EXPERTISE: We believe that our company and the work we do should have purpose and a lasting impact in the world we live in. DISHER’s mission is to Make a Positive Difference. As a team, we strive to live this out with our coworkers, customers, and communities. Our customers rely on DISHER’s deep knowledge and broad industry experience in product, people, and process

solutions to solve their unique challenges. We work hard to be the best choice in quality, delivery, and cost. Our cross-functional, multi-industry backgrounds provide unique problem-solving capabilities and fresh ideas for our clients that propel them forward.

AWARDS AND RECOGNITION: Through the years DISHER has won numerous awards and business leadership recognitions.

Here are just a few: 5th Best Small Company Workplace in the USA, 4th Best Consulting & Professional Services Workplace in the USA, 4th Best Giving Back Workplace in the USA, West Coast Chamber Business Leadership Award, MEDC Performance-based Grant Winner, Great Place to Work Certification, Best of RPO Award in Client Satisfaction, West Coast Chamber Excellence Award.

CLIENTS/MARKET REACH: DISHER serves a variety of diverse customers locally in West Michigan, regionally throughout Michigan and Indiana, and globally with footprints across our world. Our customers include organizations of all sizes—from small manufacturers, entrepreneurs, and nonprofits to large Fortune 500 companies and global suppliers. Our primary markets include medical, automotive, food/ag, furniture, consumer goods, mobility, industrial, pharma, alternative energy, aerospace, and B2B. QUALITY ASSURANCE: DISHER is a high-quality service provider. We deliver solutions in end-to-end engineering, electronics, manufacturing, talent recruiting, and business consulting. We use industry best practices, current tools/ technologies, and leading methodologies with our clients to enable them to achieve their quality standards and objectives.

CERTIFICATIONS: Our highly-skilled team has multiple degrees, certifications, and training in: Engineering - Mechanical, Electrical, Software, Hardware, Biomedical, Product Design, Automation, Manufacturing/Industrial, Quality, CAD, SOLIDWORKS, Ignition; Project Management – PMP Certifications, Professional Scrum Masters; Talent Recruitment - Certified Diversity Recruiters; Design (Industrial, Conceptual, Graphic, and UX); Business Administration (Management, Marketing, and Leadership)

Customers trust DISHER to solve their unique product development, engineering, and manufacturing challenges.

RYAN NOBLE Business Lead | Engineering Solutions - Process

RYAN SNIP Business Lead | Engineering Solutions - Product

Joe Dyer is passionate about developing people, leading growth, and Making a Positive Difference in our world as President of DISHER. The combination of Joe’s technical skills, character qualities, and strategic abilities equip him to guide the DISHER team successfully forward. Joe brings expertise in steward leadership, culture design, automation, manufacturing, engineering, and innovation.

Ryan Noble is the Business Lead for a wide spectrum of manufacturing process engineering services at DISHER. Ryan’s professional passions center around highly technical problem solving, continuous improvement, and developing others. He brings DISHER customers and coworkers close to 20+ years of exceptional engineering solutions. He always advocates for what is best for his customers.

Ryan is a Business Lead of the engineering product development teams at DISHER. He is a seasoned coach, facilitator, and engineering thought leader. He has led multiple engineering and electronics teams, programs, and projects both internally and externally. He is a go-to resource for project leadership, innovative problem solving, and workshop facilitation.

22 | MADE IN MICHIGAN

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Proud to Support

Made-in-Michigan Manufacturers

with world-class

ENGINEERING SERVICES From the fuzzy-front-end of product development through post-launch manufacturing processes—

trust DISHER to get it done right.

833.282.3730 | info@disher.com | disher.com

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Drummond Island to get new ferry vessel to ease backups

By Rachel Watson

New state funding will help an Upper Peninsula transit authority add another boat to accommodate increased traffic to Drummond Island after a pandemic-driven tourism surge.

The Michigan Department of Transportation and the Michigan Infrastructure Office on Aug. 28 announced $15 million for the Eastern Upper Peninsula Transportation Authority (EUPTA) to build an additional car ferry that will serve as the primary vessel for Drummond Island.

The approximately 250-squaremile island has about 1,000 yearround residents and about 4,000 seasonal residents and has experienced a spike in visitors since the pandemic.

According to EUPTA, the ferries carried about 406,000 passengers to Drummond Island in 229,000 vehicle crossings last year, up from about 389,000 passengers in 208,000 vehicles in 2019. Those numbers include permanent residents, island employees and tourists.

The $15 million grant, which is through the state’s Intermodal Capital Investment Grant program, will allow EUPTA to hire a naval architect to design a new vessel that would start serving the island ideally by summer 2026, according to EUPTA Director Pete Paramski.

“One of the justifications for getting the new boat was the extremely long wait times during the tourist season — from, say, May to October — where we were down to one boat, and a lot of times traffic would back up two to three hours,” Paramski said.

Drummond Island currently has two ferry boats: the Drummond Islander III, which started service in 1989, and the Drummond Islander IV, commissioned in 2000. The former can accommodate 25 passenger vehicles and the latter about 30. The new, similarly sized boat would run in addition to the existing two vessels.

Paramski said Drummond Islander III is also a “swing boat” for Sugar Island and Neebish Island, filling in when those islands’ primary ferries are in dry dock for maintenance inspections and repairs, which is why Drummond Island is sometimes

The operator of four West Michigan Dickey’s Barbecue Pit locations, including this store at 380 E. Division St. NE in Rockford, has filed for Chapter 11 bankruptcy. | JOE BOOMGAARD

The Drummond Islander III and Drummond Island IV ferries at the dock. | EASTERN UPPER PENINSULA TRANSIT AUTHORITY

down to one boat. The new vessel would be the primary boat for Drummond Island and also a spare swing boat for the other two islands EUPTA serves, he said.

Currently, EUPTA has four ferries that rotate among the three islands, with boats going out of service once every five years for staggered inspections by the U.S. Coast Guard. Adding a fifth would alleviate delays in service on the more populous Drummond Island, Paramski said.

Drummond Island is well known for having the state’s largest DNR-sponsored closed-loop all-terrain vehicle and off-road vehicle trail systems, with more than 60 miles of ATV trails and 40 miles of ORV routes. Overall, Michigan experienced a roughly 30% increase in ORV license and trail permits between 2018 and 2023, according to the Michigan Department of Natural Resources.

Kristy Beyer, marketing coordinator for the Drummond Island Tourism Association, said ORV tourism also grew on the island during the pandemic, and the riders brought with them larger vehicles like trucks, trailers and campers. These take up more room on the ferries and increase wait times, she said.

Beyer said many people came to Drummond Island during the pandemic to be outdoors and socially distanced.

“The eastern Upper Peninsula has been this well-kept secret for a long time, and I think we’re just being discovered, when people got out post-COVID and started exploring again,” she said. “We used to be (a) hunting and fishing (spot), and now we’re seeing a really big increase in the adventure seekers.”

Paramski said he noticed most of the UP saw similar growth patterns post-COVID. “These rural areas have seen a great influx in people visiting from urban areas, and (though) COVID has come and gone, they’re still up here because employers Traffic delays have built up as visitor interest in Drummond have allowed them Island grew during the pandemic. to work remotely,” | EASTERN UPPER PENINSULA TRANSIT AUTHORITY

he said.

Beyer, who also is a Realtor at Northern Properties on Drummond Island, said housing inventory is near an all-time low on the island as more people bought second homes or made the island their primary residence since 2020.

“Stuff that sat on the market for seven to 10 years was all of a sudden snatched up,” she said, noting the island’s housing stock is mostly single-family homes that are either permanent residences, summer homes or vacation rentals.

A search of real estate listings on Sept. 11 showed no homes for sale on Drummond Island and just a handful of vacant lots. Services on the island available to residents and visitors include a small airport, gas station, a handful of grocery stores, bait and tackle shops, and other retailers like hardware stores and gift shops.

The spike in ORV tourism, combined with that higher demand for housing, have contributed to the increased demand for the ferry service, Beyer said.

Paramski said EUPTA doesn’t plan to change the ferry schedule or sell more tickets as a result of the new boat. But having another vessel will allow an increase in trips per hour during peak times.

“The idea is to always be running two boats,” he said.

He added that EUPTA would not have been able to commission an additional boat without the $15 million grant.

“We’re very thankful to have the state funding and help from MDOT, the state of Michigan and the Michigan Infrastructure Office … to build this vessel, and we’re very excited here to get the process started,” he said.

Zach Kolodin, Michigan’s chief infrastructure officer and director of the MIO, said in a statement the Intermodal Capital Investment grants are for “building a Michigan where every community has the opportunity to prosper.”

“By building an additional ferry for Drummond Island … we are addressing immediate infrastructure needs while laying the groundwork for sustainable growth and modernization,” he said in the statement.

Owner of barbecue franchises files for Chapter 11 bankruptcy

By Abby Poirier

The franchisee of four West Michigan Dickey’s Barbecue Pit restaurants has filed for Chapter 11 bankruptcy, citing financial difficulties caused by the franchisor imposing “extreme and unreasonable demands.”

Smokin’ Dutchman Holdings LLC, the operator of four Dickey’s Barbecue Pit restaurants in Jenison, Holland, Kalamazoo and Rockford, filed for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Western District of Michigan. The company filed under Subchapter V of the U.S. Bankruptcy Code, which helps small businesses file more efficiently by reducing time and costs.

Smokin’ Dutchman Holdings is a 50-50 partnership of Krage Fox and Michael Kakabeeke, according to court filings.

Fox, the company’s president and CEO, said in court documents that Smokin’ Dutchman’s annual revenues over the past two years have ranged from $3.3 million to $3.7 million. The company’s revenues have reached approximately $2 million so far in 2024.

“The Debtor’s financial difficulties have been caused by the actions of Dickey’s which have imposed extreme and unreasonable demands upon the financial resources of the Debtor and the time of the Debtor’s employees,” Fox said in court filings.

Fox is asking the court to reject the company’s franchise agreements “to alleviate the Debtor from the burden imposed upon it

by Dickey’s.”

“My client is having issues with Dickey’s which has caused the strain on the company’s finances,” Perry Pastula, a lawyer with Wyoming-based Dunn, Schouten & Snoap P.C. who is representing Smokin’ Dutchman Holdings in the case, said in an email to Crain’s Grand Rapids Business.

Pastula noted that he “anticipates litigation with the franchisor.”

“The Chapter 11 will enable the company to continue to operate, serve the customers and community, keep the employees employed and deal with the issues with Dickey’s,” he said.

Smokin’ Dutchman Holdings is currently $2.1 million in debt, which includes $560,000 backed by the U.S. Small Business Administration, $448,000 to Kalamazoo-based Kalsee Credit Union and $273,000 to Nunica-based Dahl BQ Inc. Other debts include $194,000 owed to Huntington National Bank and $130,000 to online lender Idea 247. The company also said it owed the Michigan Department of Treasury $158,000.

Local unsecured creditors include Kalamazoo-based Vander Roest Homes ($7,241), Grand Rapids-based Velo Law ($4,868) and UHY Accounting Services ($4,356).

“The relief requested is essential to the maintenance of the Debtor’s operations and necessary to avoid immediate and irreparable harm to the Debtor and Debtor’s estate and its creditors,” according to court filings.

Smokin’ Dutchman opened its first Dickey’s Kalamazoo location in 2018, and acquired locations in Rockford and Jenison in 2020.

The Holland location opened in 2023. The store addresses are: w 4212 Stadium Drive in Kalamazoo w 420 Baldwin St. in Jenison w 380 E. Division St. NE in Rockford w 12579 Felch St. in Holland Currently, the operator employs 26 people across the four stores.

In an email to Crain’s Grand Rapids Business, Jeff Gruber, senior vice president of franchise relations at Dickey’s Barbecue Pit, said the company has worked to support Smokin’ Dutchman since it became a franchisee six years ago. Dickey’s also provided “extensive supplemental operational support and corporate resources in an effort to stabilize Smokin’ Dutchman’s business operations” when the franchise reached out about its challenges 18 months ago, he said.

“For anyone to state we imposed ‘extreme and unreasonable demands’ is simply inaccurate,” Gruber said.

Dickey’s Barbecue Pit has more than 500 restaurant locations across 44 U.S. states, including nine in Michigan.

24 | CRAIN’S GRAND RAPIDS BUSINESS | September 30, 2024

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RIVERFRONT From Page 1

parking deck with the residential tower, would include a 130-room “upscale” hotel with 76 condos above it. The third, a 21-story, 420,000-square-foot office tower, could house 1,600 employees and would be one of the largest office buildings in downtown. Leaders say the office tower would be built to suit a single tenant, although they did not identify the potential tenant.

The project would include two parking decks with a total of 2,500 parking spaces.

Plans also call for publicly accessible trails along the riverfront.

The team plans to seek about $543.5 million in state Transformational Brownfield Plan incentives for the project that spans 10 parcels.

RDV Corp., the DeVos family office, purchased 63 Market Ave for $1.4 million in February 2023 through 63 Market Avenue Holdings LLC, according to property records. Amway Hotel Corp., which is co-owned by the DeVos and Van Andel families, acquired the other nine parcels for a combined $10.35 million from Plaza Towers Associates in 2006.

Brad Thomas, president and CEO of architecture and engineering firm Progressive Companies, said he has been working on the concept design for this site on behalf of the two families for about five years.

Thomas said it’s part of a “grand vision” for 31 acres of prime riverfront property that emerged from a study that Grand Action 2.0 commissioned in 2020. Grand Action 2.0 is a private economic development group whose co-chairs include Carol Van Andel and Dick DeVos. The concept design also takes into account prior planning, such as the city’s master plan and the River for All and GR Forward plans, Thomas said.

“It’s really a continuation of this ‘grand vision,’” he said. “It’s one of the largest active riverfront revitalization projects in the country.”

HOTEL From Page 1

high-rise towers containing office, residential and, potentially, an “upscale” 130-room hotel with condos above it.

The proposed site is just north of the future Acrisure Amphitheater and west of Van Andel Arena.

A brand affiliation and management company have not been selected for the hotel, though project leaders have said they expect the facility will be an “upscale” offering.

Local tourism and hospitality leaders say they believe a high-end hotel could complement the landscape, but more due diligence is needed.

Rick Winn is president and CEO of AHC Hospitality, the DeVos- and Van Andel-owned hospitality company that manages five of downtown’s 13 hotels. Winn has been engaged as an industry expert to help with market research about the potential hotel.

“It is very early in the planning

The site, which is bordered by Fulton Street to the north, Market Avenue to the east, U.S. 131 to the south and the Grand River to the west, is part of the city center zone district, which allows for unlimited building heights and a mix of uses.

The property is currently a surface parking lot and formerly housed the Charley’s Crab restaurant, which closed in 2020 and was demolished this year.

“I think most people would agree that’s not the highest and best use, in terms of a site of both this size and location in the city center,” Thomas said of the current use of the property.

Fulton & Market calls for a public greenspace “promenade” midblock between the towers, Thomas said. The site would link to 100 miles of riverfront trails, including extending the existing Grand River Edges Trail south of Fulton Street.

The development also would feature ground-floor restaurants and retail along the waterfront.

Thomas said the design team’s goal is to create a “vibrant, mixeduse development” and a “sports and entertainment district” linking Van Andel Arena and the Acrisure Amphitheater that would bring an influx of workers, residents, shoppers and visitors to downtown.

Construction on the amphitheater is underway, and the venue is expected to open for the summer 2026 season.

Fulton & Market also is expected to create 1,938 permanent full-time jobs, Thomas said.

It remains unclear how the office tower might be occupied, particularly coming out of the COVID-19 pandemic that brought a widespread shift to remote and hybrid work. While the tower would be built for a single tenant, one potential lessee could be the rapidly growing Acrisure LLC. The company’s 105,000-square-foot headquarters that opened three years ago at Studio Park houses hundreds of employees, but CEO Greg Williams has previously said that the company will need more office space downtown to support the process,” said Winn, who also chairs the Grand Rapids Downtown Development Authority and Grand Rapids-Kent County Convention/Arena Authority boards.

“At this time, we are aiming for a higher end hotel to complement the others that are already downtown. However, we’re doing the due diligence and research required to determine what the market can bear.”

According to Smith Travel Research figures provided by Experience Grand Rapids, average downtown hotel occupancy last year was 61.4%, down from 65.2% in 2019 before the COVID-19 pandemic.

Janet Korn, senior vice president of Experience Grand Rapids, said those numbers reflect both a dip in travel during the pandemic as well as additional rooms coming online when hotels like the 147-room Residence Inn by Marriott, 155-room Canopy by Hilton and five-room The Finnley Hotel opened in 2020 and 2021.

Korn believes if the Fulton & Market hotel was a “boutique” product, it could be “a really unique

company’s growth.

“We’re still open in terms of what we’re doing, but because of the size and scale of the company and our needs, we’re probably going to have to build,” Williams told Crain’s Grand Rapids Business a year ago.

“I certainly don’t know of anything that exists that fits all the needs and things we’re looking for, so it’s probably a build.”

Acrisure declined to comment on whether it is eyeing the office space at Fulton & Market.

The DeVos and Van Andel families have yet to hire a developer for the project, but Progressive is finalizing a request for proposals. Members of the DeVos and Van Andel families declined to comment for this story.

“We’re going to need developers who have experience with building developments on this scale,” Thomas said.

The project’s architect and contractor also have yet to be selected.

The project team has submitted a Transformational Brownfield Plan application that would include a 20year, $296.2 million income, withholding and sales tax capture and a 30-year, $247.3 million real estate tax increment financing capture. It would be the third large-scale project in the city of Grand Rapids to pursue the tax credits, following the mixed-use Factory Yards project and the Acrisure Amphitheater and proposed soccer stadium developments that were combined into a single TBP application.

The recently expanded TBP eco-

nomic development tool lets developers apply to keep income and withholding taxes from people who work and live at certain sites associated with their project, along with sales taxes on construction materials and income taxes from construction crews on projects. TBP incentives require at least a $100 million investment for cities with populations of less than 600,000, and they must include some combination of retail, office, residential or hotel uses, per the Michigan Economic Development Corp.

The TBP would need approval from the city’s Brownfield Redevelopment Authority and city commission as well as the Michigan Strategic Fund board of directors, which oversees the MEDC. Joe Agostinelli, managing director of Michigan Growth Advisors, a subsidiary of law firm Miller, Johnson, Snell & Cummiskey PLC, is the lead consultant working on the incentives package. The Fulton & Market project was initially going to seek incentives as part of the Acrisure Amphitheater and soccer stadium TBP package, but it was separated into a different application to allow the amphitheater project to move forward more quickly, he said.

Agostinelli said the Fulton & Market development is especially expensive because the land, which used to be part of the river and was later filled in, needs to be “geotechnically” reinforced to support large buildings.

The more than $738.5 million

price tag would be impossible to meet without the state incentives, he said.

“The economics simply don’t work without significant support through incentive programs,” Agostinelli said. “The ($543.5 million in) incentives really make this project financially feasible and allows us to take a really underutilized 7-acre surface parking lot and build 1.2 million square feet of very dense, urban, mixed-use, vibrant development in the core of our downtown.”

As part of the TBP application, the developers would donate $8.5 million over a 20-year period to the Grand Rapids Affordable Housing Fund from the residential tax capture, rather than include affordable units in the development.

“The incredible cost to develop something at the scale on this particular piece of real estate did not leave a lot of room to incorporate affordable units,” Agostinelli said.

To capture 100% of income tax withholding on the residential component of a TBP project, developers must include an affordable housing component, per the MEDC. The city and Grand Action 2.0 also went the route of a donation to the Affordable Housing Fund for the Acrisure Amphitheater and planned soccer stadium TBP agreement.

The developers also aim to award at least $31 million of the construction spend to small, BIPOC- and women-owned contractors.

Agostinelli and Thomas said they will begin community engagement over the next several weeks with various neighborhood groups and business stakeholders.

They hope to secure city approval for the incentives package by November in time for the MSF board to consider the project at its February meeting.

“A lot of work has been done on this plan, and we’re optimistic it will be received favorably,” Agostinelli said.

If all proceeds as planned, they hope to start construction on the office tower in fall 2025 and complete the project in phases by the spring of 2029.

overnight experience that will be a nice addition to the landscape.”

“Depending on the brand and the experience … it could really attract an audience or guests that aren’t currently looking at Grand Rapids for that boutique hotel experience,” Korn said.

Winn said a new hotel would mainly be designed to absorb an increase in overnight stays downtown after the Acrisure Amphitheater and planned soccer stadium come online, bringing a host of new evening events.

“The amphitheater and the soccer stadium and the (Van Andel Arena) are what will generate hotel rooms for downtown,” Winn said.

“That (Fulton & Market) property, because it’s, in essence, sandwiched between the arena, the amphitheater and the soccer stadium, it could become an entertainment district of sorts, or a destination spot for people … and it all could come together as a nice package for people to visit.”

The project team plans to seek about $543.5 million in state Transformational Brownfield Plan in-

centives, which would require approval from the city’s Brownfield Redevelopment Authority, city commission and Michigan Strategic Fund board, which oversees the Michigan Economic Development Corp.

“This is what I would refer to as a ‘skyline-defining development,’” said Brad Thomas, president and CEO of Progressive Companies, who helped create the Fulton & Market concept design. “(It’s) conversion of some windblown, dusty parking lots to what could be a very vibrant sports and entertainment development.”

While the construction timeline of the Fulton & Market project depends on how long approvals take, developers now say construction on the hotel tower could begin in spring 2026 and conclude by summer 2029.

Only time and due diligence will tell whether adding another upscale hotel would compete with existing high-end properties in AHC’s portfolio like the JW Marriott and the Amway Grand Plaza Hotel, Winn said.

“It depends on what time frame you’re speaking of,” he said. “I think long term, yes, of course (it may compete). Mid-range, it may, but I think we need additional study for the short term to make sure that it can be absorbed into the market.

That’s all just study that normally occurs before you put a shovel on the ground.”

Korn said excluding a hotel from the Fulton & Market development — and building office space and residential units alone — would not be as inviting for tourists. A hotel “offers a visitor an opportunity to be in that neighborhood … to be in what might be a new heart of the downtown,” she said.

The project team hopes to secure a recommendation of approval from the Brownfield Redevelopment Authority on Oct. 16 and city commission approval on Nov. 19 in time for the Michigan Strategic Fund board to consider the project at its February meeting.

If all proceeds as planned, they hope to start construction on the project in fall 2025, starting with the office tower.

Officials with Progressive Companies have been working on conceptual plans for the property for about five years. | PROGRESSIVE COMPANIES

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COMMENTARY

Tip credit essential to protecting restaurants, workers

R

estaurants have been in my family as long as I can remember. I started working in the kitchen at 13 for my father, a successful quick service restaurant that one of my brothers operates today. My other brother is a partner in a Michigan company operating several local brewpubs. I carved out my niche as president of Restaurant Partners Management LLC, a collection of 15 restaurant brands with 21 locations employing 850 people in West Michigan and Traverse City.

Over the years, I’ve Jeff Lobdell is seen what works in our the founder and business, and one of the most important cornerpresident of stones is the tip credit.

Restaurant This compensation Partners model allows us to pay Management tipped employees a base LLC in Grand wage supplemented by Rapids and is customer tips, which sigchair of the nificantly contributes to National the livelihoods of our Restaurant staff. Tipped employees, Association. like servers and bartenders, often earn far more than the minimum wage. The average tipped servers in Michigan make more than $25 an hour, with some of the highest earners making far more than that. This is significantly higher

than the state’s minimum wage and draws many individuals to this line of work.

Tragically, out-of-state interests are determined to eliminate the tip credit in Michigan, a move that would have devastating consequences for everyone in the restaurant industry. Proponents argue that tipped employees should earn the full minimum wage as their base pay, driven by a misconception that workers are only making a couple dollars an hour. In reality, the tip credit ensures that tipped employees always earn at least the minimum wage, with the opportunity to make much more through tips. If an employee’s base wage and tips don’t meet the minimum wage, the employer is legally required to make up the difference.

My tipped employees love this system. It gives them unmatched flexibility and allows them to serve their community. Many are single parents who have used their earnings to cover expenses, buy a car, and save for a home or college. They have told me that they much prefer this status quo over a new system where their employer must reformulate their entire business model.

In Michigan, where the restaurant industry is vital to our economy and culture, eliminating the tip credit poses a significant threat. The recent Michigan Restaurant & Lodging Association (MRLA) survey paints a dire picture. According to the survey, 40% of Michigan restaurants are not profitable, and the loss of the tip credit

would likely push many over the edge.

One in five full-service restaurants could close permanently, leading to an estimated loss of 40,000 to 60,000 jobs, mostly among tipped employees.

Without the tip credit, we would be forced to raise menu prices to cover the increased labor costs, with 94% of operators expecting to raise prices by 25%. Higher prices could drive away customers, leading to reduced business and the need to cut staff hours or lay off employees altogether.

Any skeptics can look at Washington, D.C., where a phase-out of the tip credit began in May 2023. Since the change, restaurants have seen a decline in customer traffic and cut more than 1,000 jobs. This stark reality could easily replicate itself in Michigan if similar policies were implemented here.

Eliminating the tip credit would diminish the earning potential for many workers who work hard and provide excellent service. By removing this model as an option for restaurant owners, we would strip away a significant income source for our employees, leaving them with lower wages and fewer opportunities to earn a living. It could also lead to a less personalized dining experience, giving way to automation like we see in banking and grocery stores.

As a restaurant owner, I understand the importance of fair wages and protecting

workers. However, the tip credit is not an enemy of workers; it empowers them to earn substantial incomes while providing flexibility for employers. The push to eliminate the tip credit is not homegrown and doesn’t come from our tipped employees.

It is driven by special interests that fail to recognize the real-world impact on small businesses and their employees. In fact, a recent survey of tipped servers by the Michigan Restaurant & Lodging Association found that 83% of tipped servers prefer the current system over one with higher base pay and less certain tipping future.

Michigan legislators must act now to save the tip credit, thousands of Michigan restaurants, and tens of thousands of hos-

Tipped employees, like servers and bartenders, often earn far more than the minimum wage. pitality jobs. Michigan is a travel and tourism state that relies on hospitality. Our restaurant gathering places play a crucial role in our communities, and we must stand up to protect the tip credit. By preserving it, we can ensure that our restaurants remain vibrant, our employees well-compensated, and our customers satisfied. Let’s not let misguided policy decisions dismantle a system that works so well for so many.

COMMENTARY

Region has opportunity to further clean energy leadership

S

energy savings will reach $297 by erving in the Michigan 2030, rising to $713 by 2040. FurHouse of Representatives, I ther, a new influx of federal and strive every day to make sure state funds will help families inour state is a safe, equitable and vest in making Michigan’s homes thriving place to live, work and healthier, more energy efficient play. And as a lifelong advocate and affordable. for public health and our enviPublic health costs will plumronment, I was honored to cast met, saving West Michigan $671 my vote in the spring of 2023 in million by 2030 and preventing favor of smart clean energy poli- State Rep. hospitalizations, deaths, lost cies that are set to pay off for West Rachel Hood school and work days, and more, Michigan. With just a few months serves in the saving a total of $2.5 billion by left in this legislature, and new 81st House 2040. climate stress signals being dis- District When our central air unit failed covered by climate scientists covering the city last year, my family invested in a weekly, it’s clear there is still of Grand new heat pump and improved the more work to do and our window Rapids and insulation in our attic. Like many to get it done is shrinking.

Ada, Grand other families and businesses, A new study from 5 Lakes Ener- Rapids and we’re benefiting from the broad gy, Michigan’s Clean Energy Eco- Plainfield array of tax credits available to nomic Comeback report show- townships. help Michiganders invest in enercases the economic benefits Michigan’s new clean energy laws will de- gy efficiency, rooftop solar and other clean liver to the state’s workers, families, busi- energy investments. Come tax return day, nesses and communities. The report finds the region can expect more than $6.1 bilthat West Michigan alone will welcome lion in tax credits to be delivered back to more than 10,600 new, living wage clean families and businesses just like ours.

The numbers don’t lie: Investing in clean energy jobs by 2030; by 2040 that number energy will help Michigan thrive for years will exceed 17,000 new jobs.

Our new clean energy policies will help to come. But to keep this momentum gokeep energy affordable for Michiganders. ing, we must continue pushing forward for Throughout Michigan, annual household all Michiganders.

Let’s consider Michigan’s family farmers. Climate change is making farming a high-risk industry. Wind and solar power provide family farmers with valuable new income streams to augment revenue and help them succeed. In 2023, state Sen. Roger Victory and I joined a delegation of Midwestern legislators to tour clean energy innovation in eastern England. Now Michigan is working to connect farming families with opportunities to lease less productive land for clean energy projects, while continuing to farm on high-yield land. It’s a quadruple-win for agriculture, the economy, our farming families and our vibrant local food system.

Next up, Michigan must take advantage of the unparalleled benefits of adding community solar as an energy option.

Community solar allows households and businesses to work with solar developers to invest in solar through subscription services. This approach to solar provides access to people who don’t own a rooftop compatible with solar, or who can’t make the financial commitment to rooftop solar.

Community solar provides access to solar for everyone, which is why it was an important foundation of the Biden administration’s energy policy.

Community solar is allowed in 22 states and offers a variety of additional benefits to

Michigan. Developers invest in local energy interconnect updates — a real benefit for communities where energy transmission and reliability issues cause frequent and lengthy energy disruptions. Community solar will also deliver quality jobs and economic wins. It provides us the ability to deliver mid-sized solar arrays that are compatible in suburban and urban communities. Finally, when we produce energy closer to demand, we reduce the amount of energy produced, and then lost, in lengthy transmission.

We owe it to our kids and grandkids to protect them and their futures and provide the tools they’ll need to mitigate climate change, and remain resilient, in a rapidly changing world. Clean air, clean water and abundant natural spaces aren’t an accident — our parents and grandparents crafted, voted for, and invested in policies and infrastructure that cleaned up out of control, mid-20th century water and air pollution. They actively conserved land and access to nature.

We have a responsibility to do the same in the 21st century, to leave a better Michigan for future generations. Our legislature has done remarkable work already and has an opportunity to do even more before this legislative session closes. One thing is certain: there isn’t a moment to lose.

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 | September 30, 2024

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Biomass energy startup to locate COMPANIES / PEOPLE ON THE MOVE headquarters in Grand Rapids Advertising Section

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

By Elizabeth Schanz

A startup platform that uses artificial intelligence for wood waste diversion and sourcing fuel for renewable energy is establishing its first physical headquarters in Grand Rapids, where it aims to advance clean energy research and development and process biomass material.

Launched in October 2023, Woodchuck.AI emerged as a problem-solving platform, finding ways to reduce construction and manufacturing waste while contributing to renewable energy generation.

Woodchuck.AI uses deep-learning image recognition to identify and process waste and is trained to recognize various types of wood and other materials. The platform can automatically schedule wood waste pickups and track diversion rates.

The platform also determines where best to divert the materials to simplify the waste management process to find uses across remanufacturing, bioenergy or industrial products.

Woodchuck is working to find a 10-15-acre site for its headquarters, and is raising $2.5 million in seed funding to scale operations.

Woodchuck’s program has the potential to replace companies’ existing waste management operations, company founder and CEO Todd Thomas told Crain’s Grand Rapids Business.

Woodchuck diverts wood waste, processes it into biomass and delivers it to the facilities of NorthStar Clean Energy, an Ann Arbor-based subsidiary of CMS Energy Corp., where it is converted into clean energy. This aims to build out the biomass supply chain, he said.

Woodchuck’s partnership with NorthStar Clean Energy was the “genesis” of Woodchuck and how the startup found its footing in Michigan, Thomas said.

Thomas said that none of NorthStar’s three bioenergy facilities in Michigan work at full capacity because of a lack of biomass supplies, leaving the facilities to supplement their fuel supply with petroleum or coal. By expanding Woodchuck into Grand Rapids, the company can produce a greater level of biomass materials, Thomas said. “(NorthStar) would like to be 100% renewable,” Thomas said.

“The volume of wood waste that we’ve estimated out of Grand Rapids is a huge number, which will help us to meet CMS’s goals and demands for biomass.

“Establishing operations in Grand Rapids — and being able to tap in and capture all of that wood waste coming out of western Michigan — puts us well on our way towards achieving the total volume needed by CMS.” CMS Energy is also the parent company of Jackson-based investor-owned utility Consumers Energy, which has set plans to end its use of coal for electricity by next year and reach net-zero carbon emissions by 2040.

The Woodchuck.AI platform uses deep-learning image recognition to identify and process waste and is trained to recognize various types of wood and other materials. | COURTESY OF WOODCHUCK

With the area’s furniture manufacturers, Thomas estimates about 1 million tons of wood waste is generated per week in West Michigan.

According to the Nuclear Regulatory Commission, it takes approximately 1 ton of wood waste per hour to produce 1 megawatt of electricity.

As Woodchuck continues to expand its capabilities and connections, the company hopes to collect 5 million tons of wood waste a week, Thomas said.

Jennifer Wangler, vice president of technology for The Right Place Inc., said the economic development organization connected with Woodchuck based on the company’s ability to offer sustainability solutions in West Michigan.

Wangler added that Woodchuck’s presence in Grand Rapids helps advance the organization’s 10-year strategy to create a tech hub for startups.

“Part of that strategy was to grow the local ecosystem with innovative companies doing things to grow the tech industry, and I believe that Woodchuck, with their AI platform, fulfills that role,” Wangler said. “The fact that (Woodchuck) chose Grand Rapids to grow their company and their team will highlight to all of the other companies, tech companies and founders that are out there that, ‘Yes, this is a place that can accommodate innovative technology companies.’”

Wangler is working to help find the startup a physical location in Grand Rapids. Thomas, who is from Scottsdale, Ariz., had never been to Grand Rapids before deciding to make it Woodchuck’s home base.

Its headquarters will function as an innovation and research and development center, in addition to operating a functional biomass processing location, Thomas said. “(The facility) won’t just be innovation and R&D, it will actually be a real processing, full scale biomass processing facility. That will allow us to develop the software and mature the AI in a real-life, full-sized operation,” Thomas said.

Once the headquarters is established, Woodchuck aims to add three to five new employees on staff, including sales staff and ma-

chine operators, Thomas said. Currently, the Woodchuck team consists of Thomas, co-founder Drew Nitze Nelson and General Manager Matt Wheeler.

Woodchuck initially worked with construction and manufacturing companies in Detroit, Thomas said. Since March, the company has done a waste processing trial program with the platform’s first investors: NorthStar Clean Energy, Flint-based Genesee Power Station and Mid-Michigan Recycling.

Since initiating the partnership, 76.5 tons of wood waste have been delivered to NorthStar processing facilities in Livonia and Macomb, according to company executives.

“We got our first revenue in January 2024. So we achieved first revenue within 90 days of launch,” Thomas said. “In our first six months of operation, we have already diverted over 100 tons of CO2, we have generated 500 million BTUs of clean energy on average. We’ve lowered the wastewater cost for our clients by 30% and since January, we’ve averaged 45% month-over-month revenue growth.”

Woodchuck currently has 10 clients supplying wood products in construction and manufacturing.

Thomas forecasts that Woodchuck will have $5 million in recurring revenue by the end of 2025.

To support growth, Woodchuck is currently raising $2.5 million in seed funding that will go toward developing Woodchuck’s AI platform and the location in Grand Rapids, Thomas said.

In addition to NorthStar Energy and The Right Place, Woodchuck is in partnership with venture capital firms Grand Rapids-based Beckett Industries and Indianapolis-based High Alpha Innovation.

“The goal is to stand up the innovation facility and Grand Rapids and complete and perfect our AI platform. Step two is really to continue to build out the biomass supply chain within Michigan so that we can reach the volume and we are meeting NorthStar Energy’s complete demand for biomass,” Thomas said. “At that point, we will look to scale nationally and globally by licensing our technology across nations and across the globe.”

ADVERTISING, MARKETING & PR

HEALTH CARE

NineTen Media

Care Resources

To meet the needs of expansion, the newly rebranded marketing agency NineTen Media is positioned for the future and to support its partners and community.

“We’re grateful for the growth and excited to offer even more tailored services,” owner, Marcus Drenth said. Formerly Dood Digital, the agency collaborates with medical and dental offices, publishing, food/beverage, and more. The team has worked with Fortune-500 caliber companies and launched over 700 websites.

Visit: www.NineTenMedia.com

Experienced health care professional Kimberly Smith has been named the new CEO of Care Resources, a community-based program for people 55+ that promotes healthy and independent living. She brings 25 years of health care expertise and a passion for helping seniors to her role. She previously held leadership positions at Corewell Health in skilling nursing, rehabilitation, assisted and independent living and other areas. Care Resources is a Program of All-inclusive Care for the Elderly, or PACE®.

HEALTH CARE

BANKING & FINANCE

true. Women’s Health

Adamy Valuation

true. Women’s Health is pleased to announce the expansion of its team with the addition of Megan Mouser, NP-C, and Dr. Tricia Mouser Mueller, DO, to meet growing demand for its concierge medicine services. This expansion allows the clinic to reduce wait times and offer more appointments Mueller for women seeking personalized, comprehensive care in every life stage. Megan Mouser, NP-C, is a Certified Family Nurse Practitioner with expertise in preventive care and women’s wellness, while Dr. Tricia Mueller, DO, brings 17 years of experience in Family Medicine, specializing in preventive and lifestyle medicine.

Mouser and Dr. Mueller will offer primary and preventative care, personalized health assessments, and the clinic’s specialty, menopause management.

Damien Hughes brings over 22 years of valuation experience and has led teams in director roles at Big Four firms. Hughes Hughes provides valuation services for publiclytraded and privatelyheld business, as well as individual clients.

He will serve clients nationwide from the East Coast.

Helwick For seven years, Jake Helwick has served clients nationwide from Michigan. He has been promoted to Director, reflecting his commitment to exceptional management and innovative thinking, which has been a key contributor to the firm’s growth.

These appointments enhance Adamy’s nationwide service offerings, providing robust valuation expertise to clients.

BANKING & FINANCE

Old National Bank

NONPROFITS

Old National Bank has announced the hiring of Scott Lubbers to SVP, Corporate Relationship Manager.

Lubbers will lead the corporate banking efforts for West Michigan and has more than 22 years of financial services experience. He most recently served as the Lakeshore Market Executive for Fifth Third Bank. Lubbers is an active community leader currently on the Board of Directors for Lakeshore Advantage, Michigan West Coast Chamber of Commerce, and the Now For The Next Advisory Committee.

North Kent Connect Adrienne Goodstal will be the 5th executive director at North Kent Connect in 51 years, effective September 30, 2024. Goodstal brings over 10 years of experience in non-profit and mission-driven organizations, with a proven track record of excelling in strategic visioning and organizational leadership.

She will focus on key initiatives of accessibility to fresh food, attainable housing, and transportation, while continuing to drive innovative programs and deepening community connections.

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VOLLEYBALL From Page 1

million deal on Feb. 12 to sell to DeVos’ PVF Ventures, according to the lawsuit. The deal included all the Class A shares and at least 72.6% of other outstanding equity shares in the Pro Volleyball Federation.

The founders say the sale was motivated by their desire to preserve the new league and avoid a “leveraged corporate takeover” by another franchise owner based in Omaha, Neb., according to court filings.

PVF Ventures is registered to Scott Gorsline, executive vice president of operations at DP Fox Ventures, the family office for Dan and Pamella DeVos. The company paid the first $500,000 installment to Whinham and Evans two days after signing the Feb. 12 purchase agreement. The second $500,000 payment, which was due Aug. 12 if certain conditions were met, has not been paid, according to the lawsuit.

The conditions in the deal included the league’s continuation at the six-month anniversary of the purchase agreement, no findings of malfeasance on the part of the founders in a forensic audit of the league, and the founders’ filing of all necessary tax returns through the time of the initial deal.

In court filings, Whinham and Evans claim they met the terms spelled out in the purchase agreement and said the DeVos-backed PVF Ventures “never advised (them) that a forensic audit re-

M&A From Page 3

negotiating room on the valuations, and that may bring more sellers to the market as well.

“We’re really looking forward to a busy 2025. It should be a good year.”

In a recently updated U.S. economic outlook, University of Michigan economists predicted that the FOMC will continue reducing interest rates at every meeting through May 2025.

Jeff Korzenik, chief economist at Fifth Third Bank, is certain that the FOMC will begin cutting rates as inflation eases and the national job market cools, which is stoking concerns about a downturn in 2025.

“The easing is finally here; the magnitude of easing it still a little bit of a question,” said Korzenik, who “leans a little more” toward the FOMC possibly implementing a “long string of gradual cuts.”

While rate cuts tend to take 10-12 months to affect the economy, the lower rate environment “should put a little wind in the sails” of the M&A market that has pent-up demand and has been weighing some uncertainty from the presidential election, Korzenik said.

“The Fed’s easing, coupled with the clarity of the election, eventually, I think is a combination that’s going to be very positive for the M&A market,” he said.

Interest rate cuts would begin as M&A activity has held steady, if not inched upward this year, according to M&A professionals that Crain’s

vealed that (they) committed Malfeasance,” nor were they contacted in any way “indicating that an investigation was taking place.”

The lawsuit claims that on Aug. 16, Whinham notified DeVos, his son, Cole DeVos, and Gorsline about the missed payment, but “to date, that communication remains unanswered.”

A Columbus, Ohio-based law firm representing Whinham and Evans contacted PVF Ventures on Aug. 20 demanding payment. In a letter sent to PVF Ventures on Sept. 6, Whinham and Evans gave the company until Sept. 11 to remit payment and accrued interest and fees or face litigation.

The lawsuit filed Sept. 17 in the U.S. District Court for the Western District of Michigan claims breach of contract and seeks the $500,000 payment, plus attorney fees, expenses and other relief “the court may deem just and proper.”

A spokesperson for PVF Ventures issued the following statement when contacted by Crain’s Grand Rapids Business about the case: “We were just made aware of this legal action and we are disappointed that this could not have been resolved amicably. We are working hard to come to a fair resolution of outstanding issues relating to the agreement in question, some of which have given us pause. The PVF Ventures ownership group is hopeful for a swift resolution as we continue to move forward with positive momentum.”

The court documents offer the league founders’ view of what proved to be a tumultuous time

for the Pro Volleyball Federation, which Whinham and Evans founded in 2022. Both founders had prior executive roles in teams that competed in the now-defunct Arena Football League.

DeVos also had prior experience in the AFL, having owned the Grand Rapids Rampage from 1998 until 2009, when the league ran into financial problems and filed for bankruptcy.

In fact, that collective experience in the AFL led to Whinham and Evans reaching out to the DeVoses about joining their new professional women’s volleyball organization.

The founders awarded the DeVoses the first franchise in December 2022, creating the Grand Rapids Rise.

“We had a prior relationship with Dave and Stephen, and we knew the family,” Cole DeVos told Crain’s Grand Rapids Business for a report earlier this year. “I was very intrigued from the moment we had this first conversation and they wanted us to get on board.

Immediately, we got to work on our research about what volleyball in Grand Rapids could look like and it evolved very quickly.”

The league’s a deal to create the Rise was with West Michigan Volleyball LLC, which they say in the lawsuit is affiliated with PVF Ventures by common or “substantially common” ownership.

Gorsline also serves as the registered agent of the West Michigan Volleyball entity.

Around August 2023, five months before the league’s first match, a group that owned the Omaha franchise tried to buy the

Las Vegas team, which violated league policy, according to the lawsuit.

In court papers, Whinham and Evans claim the White Group, held by Omaha businessman Dan White, sought to buy the Las Vegas franchise through “misrepresentation and other nefarious means, performing an endaround of the league’s policy against a single group having majority ownership and control of multiple league franchises.”

“By December 2023 additional information came to light, and it became apparent … that the White Group was in the process of executing a leveraged corporate takeover of PVF. Because (Whinham and Evans) believed that such a development would be bad for PVF and its fledgling league, (they) tried to resist Mr. White’s takeover,” according to court filings.

Whinham and Evans claim that “in a show of support for the league,” the DeVos-backed West Michigan Volleyball “helped to shore up the league’s operating cash flow” and pushed to have the White Group removed from the league.

As the White Group “continued its efforts to gain control of the league” and with the start of the inaugural 2024 season approaching, West Michigan Volleyball “changed its position on White’s immediate removal and sought to cooperate with the White Group, at least through the 2024 league season.”

By January, Whinham and Evans determined that “the only way

to begin the league’s 2024 season on time, and without damaging public disclosure of the White Group’s behind-the-scenes takeover campaign,” required them “to step back from the league.”

They then began talks with West Michigan Volleyball about buying their interest in the Pro Volleyball Federation, which led to the Feb. 12 agreement with PVF Ventures, according to court documents.

The lawsuit claims that Whinham and Evans “had performed all of their obligations” under the sale agreement and were due the second installment payment. “But to date, (PVF Ventures) has breached its contractual obligation to pay.”

Attorneys in Butzel Long PC’s Grand Rapids office along with New York City-based law firm Wollmuth Maher & Deutsch LLP represent Whinham and Evans in the case.

Representatives for Whinham and Evans declined to comment for this report.

The Grand Rapids Rise had a successful inaugural season, drawing crowds to Van Andel Arena that averaged nearly 5,000 people over a dozen home matches.

Attendance totaled nearly 54,000 for the season, Crain’s Grand Rapids Business previously reported.

The team made it to the championship match, but lost to the Omaha Supernovas.

The volleyball league also has franchises in Atlanta, Ga.; Columbus, Ohio; Dallas, Texas; Indianapolis, Ind.; Kansas City, Mo.; Las Vegas, Nev., Omaha, Neb.; and Orlando, Fla.

Grand Rapids Business contacted for a perspective on the market.

They described how activity has been slower in the last couple of years, dampened by rising interest rates as well as economic and political uncertainty, while lower business valuations have kept sellers on the sidelines.

“We’ve been really steady this year,” Boucher said of M&A activity among Warner Norcross + Judd’s clients. “Certainly, not as crazy as a few years ago, but we’ve seen a steady stream of deals.”

This year started with a slow market and gradually improved as the year progressed, said Peter Roth, an M&A attorney and partner at Varnum LLP in Grand Rapids. Deals have been taking longer to get done, with fewer buyers and fewer bidders when a company goes through an auction process, he said.

High interest rates “haven’t helped” deal flow, and buyers are going through deeper due diligence than a few years ago, he said.

As interest rates rose since early 2022 to their present highs, “some people have sat on the sidelines,” according to Roth.

“Some buyers are just like, ‘Look: There’s uncertainty in a lot of things in the world and interest rates are high. Why do a deal now?

Why not wait and do a deal a year or two from now?’” Roth said.

“Over the course of the year, there’s been kind of a wait-and-see (mood) on when will rates really start to come down.”

When the Fed starts to cut rates and deal financing costs begin to

come down, prospective buyers who have been on the sidelines the last two years might start getting active, he said.

“I also think people that are in the market just might become more aggressive, thinking that the cost of capital is starting to go down — and it looks like it will really go down over the next year. Maybe they want to get into the market on the front end before everybody else does,” Roth said. “I think (the M&A market is) going to see a bounce.

The rates will mostly impact buyers’ interests, but if there are more buyers, then sellers start to go, ‘OK, there’s a better market’ and they start hearing from the investment bankers and the lawyers.”

Nationally, the M&A online marketplace BizBuySell.com in July reported a 5% increase in small business transactions from a year earlier. Deals rose 3% on a quarter-over-quarter basis.

Activity for Grand Rapids-based Calder Capital LLC through August has been “very consistent” with 2023, although small business M&A “has probably been getting more difficult,” Managing Partner and owner Max Friar told Crain’s Grand Rapids Business.

As the economy gradually slowed from the effects of high interest rates, business performance also trended lower in 2024, which could potentially drive more sellers to the market in the coming year, Friar said. He’s seeing higher rates of distress among small manufacturing companies in the Midwest.

“Buyers are still very aggressively

going after quality businesses, and I continue to feel like there are fewer quality businesses for sale. It is still a seller’s market if your business is performing on a stable basis or it’s growing,” Friar said. “On small businesses, a lot of them are grappling with things being tougher right now, and that’s just going to feed into further exhaustion. There are a lot of folks that have just held on through COVID and held on too long, and I feel like they’re going to make a decision.

“I think 2025 should be a year of a lot of transactions driven by sellers coming to market. It might be more balanced from a buyer’s and seller’s perspective.”

Still, a reduction in interest rates “by itself isn’t going to move things in the market any more quickly,” Friar said. “While any downward movement won’t hurt, I think a more substantial rate cut … could provide a meaningful boost to the market. However, I don’t believe rates will decrease enough to significantly invigorate the market in 2025.”

The M&A market does “feel like it’s been getting better” throughout 2024, with an uptick in activity at the start of the year, said Yasmeen Jasey, the Michigan market executive for Citizens Bank. Jasey said the lender is “very optimistic that M&A is going to continue and make steady progress for the remainder of the year.”

“We actually anticipate that that momentum through the end of the year will carry into 2025,” she said.

She notes that the current M&A

landscape is clouded by players waiting for rates to decline and to get past the election to execute a deal.

“Everyone’s waiting for what’s going to happen with the rate environment, but that’s coupled with the fact that you have this geopolitical uncertainty that’s going on and a contentious election cycle. Both of those tend to pose a little bit of cautiousness,” Jasey said. “As we’re talking to folks in Michigan, it’s not that they got out of the market, it’s that they’re waiting. They’re waiting, they’re collecting data, they’re being more diligent to make sure that they’re acting and reacting to the market appropriately.”

When interest rates start to come down, “it will have a big psychological effect on the sellers and they’ll be more willing to go to market with their business,” said Mike Brown, a partner at Charter Capital Partners, a Grand Rapids-based M&A firm. However, rates will have to keep coming down over a period of time to really affect the market, Brown said.

A steady decline in rates in the coming months will help the M&A market “quite a bit,” Brown said.

“A quarter point really doesn’t move the needle all that much,” he said, noting that deal flow for Charter Capital Partners has been “pretty choppy” this year.

When rates do start to decline, the effects on the M&A market won’t come for another five or six months because of the time it takes to work through a transaction, Brown said. He anticipates a rise in closings in the first quarter of 2025.

28 | CRAIN’S GRAND RAPIDS BUSINESS | September 30, 2024

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FARM LABOR From Page 3

Clover Adams said the group wants to raise the sense of urgency surrounding the problem and ramp up efforts to find solutions.

“I looked at what was happening in Washington and (while they had) a lot of really good efforts, I think what they really lacked was the sense of urgency that I feel from my growers, and I know that my colleagues do,” she said.

“Something needs to be done, or the state is going to look drastically different in the future.”

AEWR determinations The state-specific AEWR is calculated yearly by the U.S. Department of Labor. As of 2024, Michigan’s AEWR was the fifth highest in the U.S., behind California ($19.75), Oregon, Washington and Hawaii.

The wages are based on the annual Farm Labor Survey, which gathers data from farms from April to October, estimating the average gross hourly earnings. The intention of the AEWR is to ensure that the employment of H-2A workers does not adversely affect the wages paid to domestic workers doing the same work.

Clover Adams noted that unlike the minimum wage, the AEWR does not have a predictable cap for annual increases.

“The minimum wage in Michigan can go up, but it’s capped at 3.5% (annually),” she said. “That provides certainty to business owners in Michigan to know how much they’re going to have to pay — at least the minimum with the economy we have.”

Michigan’s AEWR is now more

TRINITY From Page 3

things, but our vision is to really create even more space for our growth in outpatient services within the cancer network,” Trinity Health Grand Rapids President Dr. Matt Biersack told Crain’s Grand Rapids Business in an exclusive interview.

“That means additional space for multidisciplinary teams that are seeing different types of cancer, and that means expanding our capabilities in radiation oncology,” Biersack said. “The aim is to continue with the model that’s always been the case in the Lacks Cancer Center, and that is to have access to all cancer services under one roof.”

The renovations would provide more space for infusion therapy at the Lacks Cancer Center, which Trinity Health developed and opened in 2005 to provide comprehensive cancer care at the main hospital campus near downtown Grand Rapids.

Seven Generations Architecture + Engineering, a tribally owned firm based in Kalamazoo, serves as the designer on the project.

Trinity Health targets the renovation to begin in mid-2025 “if all goes as planned,” Biersack said.

than $8 higher than the state’s minimum wage of $10.33.

At the same time, the Department of Labor’s methodology for calculating the wage rate relies on a survey that a significant number of farmers do not complete, as noted in a report by the Michigan State University Extension earlier this year.

Michigan’s agricultural leaders are concerned for a future in which the state and nation are no longer able to compete against imported produce.

“If we’re not competitive with (other countries), we’ll be eating produce from Mexico and other countries in South America 10 years from now,” said Greg Bird, executive director of the Michigan Vegetable Council.

A growing number of Michigan cherry growers have been destroying their crops as costs exceed revenues. | COURTESY OF JOE RASCH ORCHARDS

Caleb Herrygers, a fourth-generation farmer and operations manager at Herrygers Farms in Oceana County, has employed H-2A laborers since 2016. This year, because of the wage increase, he anticipates having an extra $75,000 in labor costs, noting that the farm is currently paying $400,000 more for the same amount of hourly labor compared to eight years ago.

“You can take a little bit of a punch year to year, but you just can’t keep taking them year after year and not start to feel the effects,” he said.

The 1,000-acre farm produces asparagus, cherries and apples, employing around 70 migrant workers in the spring during asparagus harvest and in the fall to harvest apples.

The rising wages mandates are affecting the profitability of farms and also posing challenges for

farms to sustain operations over time, as funding needed for upkeep and maintenance often gets diverted to pay for labor instead, Herrygers said.

“Farms keep dipping into margins or slowing down capital reinvestments just so they can afford to withstand the increase in the H-2A rate,” Herrygers said. “I think we’re getting to the end of the rope. We’ve got a lot of equipment that should have been replaced years ago, and the funding just isn’t there to do that.”

In reaction to the labor cost increases, some West Michigan farms have eliminated crops from their operations, including some orchards destroying once-popular fruits such as cherries that are uneconomical for farmers to sustain, as Crain’s Grand Rapids Business previously reported. The ongoing challenges have some farmers bracing for the day they might need to call it quits, adding to an ongoing decline in farm acreage in Michigan.

Trinity Health’s Grand Rapids and Muskegon operations formed the joint venture with University of Michigan Health-West and Michigan Medicine in 2019 to create the regional Cancer Network of West Michigan, which includes specialists in oncology from each health system.

In January, Trinity Health Michigan and University of Michigan Health-West appointed Dr. Lloyd Geddes Jr. as executive director of the Cancer Network of West Michigan. Geddes came to Grand Rapids from the Methodist Cancer Institute at Methodist Le Bonheur Healthcare in Memphis, Tenn.

Lacks Cancer Center treats about 1,500 new cancer patients annually and serves thousands more for follow-up care.

Through the renovation, Trinity Heath hopes to add brachytherapy at Lacks Cancer Center as part of the Cancer Network of West Michigan. That’s a procedure that treats certain types of cancer by placing radioactive material inside the body to better target cancer tumors, according to the Mayo Clinic.

The project also would make site improvements that “will really enhance the patient experience,” Biersack said.

“We can do a lot to enhance the ease with which patients come in

and are directed to and receive services,” he said.

The planning for the major renovations at the Lacks Cancer Center marks the latest investment in health care projects across West Michigan.

In Grand Rapids, Cancer & Hematology Centers opened a new treatment clinic that provides more room for clinical trials and replaces a location previously leased at the Lacks Cancer Center.

Trinity Health plans to open a long-term acute care hospital in Grand Haven in early 2025 that would replace a Muskegon facility that closed three years ago. The project is converting 42 beds at the 81-bed Trinity Health Grand Haven hospital to create Trinity Health Specialty Hospital-Grand Haven at a cost of $3.3 million.

Corewell Health has had several ongoing building and renovation projects. Most recently, the health system began work this month on an expansion and renovation at the Greenville Hospital Cancer Care Center with the backing of a $4.2 million gift that will fund nearly all of the project’s cost.

In July, Corewell Health opened a walk-in medical clinic in Wayland and is a partner with Mary Free Bed Rehabilitation Hospital in the $70 million Joan Secchia Children’s Rehabilitation Hospital that began

The challenge for farmers

According to the U.S. Department of Agriculture’s census, Michigan had 10.4 million acres of farmland in 1997, which decreased by 6.5% to 9.76 million acres in 2017. Between the 2017 and 2022 agricultural census, Michigan shed another 2.9% of its farmland.

Data from the USDA also highlight a slow decline in active farms nationwide. Some 1.89 million farms were active in 2023, a decline of 7% from 2017.

As farms struggle to remain profitable, Michigan’s agricultural leaders anticipate seeing more farms consolidating, and additional losses of acreage given farmers’ hesitancy to invest in their land.

“If you’re a farmer looking to bring in the next generation or invest in a newer variety of apples, and you don’t know what the next five or 10 years holds, you may not make that investment,” said John Kran, national legislative council for the Michigan Farm Bureau. “If they know, at least within some level of certainty, what the rate is going to be long term, they can make those decisions and know if they want to keep growing those crops or make investments … to grow their business operation and keep the next generation involved.

If you don’t have any certainty, it’s really hard to make those decisions.”

Protect our Produce hopes to elevate farmers’ concerns to the attention of national leaders. For starters, the coalition wants to pause the wage increases to allow farmers to navigate the next few years, Clover Adams said, noting that the group’s backers think a bi-

partisan solution is within reach.

“This is a fixable problem, if people would just roll up their sleeves and get to it,” she said. “We need predictability and we need certainty so growers can plan.”

The Supporting Farm Operations Act, introduced in January by U.S. Rep. John Moolenaar, R-Midland, aims to provide relief for farmers.

The bill, which has received widespread support from Michigan’s agricultural leaders, would freeze the wage rate at the level that was established in 2023 through the end of 2025. The bill passed through the House Appropriations Committee this July as part of a package intended to provide funding for the Department of Labor.

As well, a bipartisan group of 120 members of Congress, including Moolenaar, U.S. Reps. Bill Huizenga, R-Holland, and Hillary Scholten, D-Grand Rapids, wrote a letter in May to House Appropriations leadership requesting a freeze to the wage.

While a solution is possible, Kran noted that it will require bipartisan support.

“Long term, we need a Congress that’s willing to work together across the aisle and come up with a plan so that farmers and the workforce … can make long-term decisions,” Kran said.

In the meantime, the coalition is focused on raising awareness for the issue and educating the public on what a future without Michigan produce could look like. “(This is) not just a farm country issue,” Kran said. “It’s important to folks in urban areas, too, because everyone eats, everyone wants to have access to nutritious fruits and vegetables that are grown by our standards.”

construction this summer.

The health system’s Helen DeVos Children’s Hospital also is a partner with Pine Rest Christian Mental Health Services on the new $98 million Pediatric Center

for Behavioral Health. Construction began in May on the 66-bed, 132,000-square-foot pediatric center on Pine Rest’s 68th Street campus in Cutlerville that’s targeted to open in 2026.

What is the solution?

Benteler Automotive Corporation seeks a Plant Engineering Manager for a position in Grand Rapids, MI. Successful candidates must have a Master’s degree in Industrial Engineering or foreign equivalent and 2 yrs experience. Send resumes to Casondra.Meerschaert@benteler.com with Ref. No 48326.

Project Manager of Strategic Initiatives, responsible for managing the planning, execution and evaluation of projects of varying size and complexity, including, but not limited to, enterprise-wide projects and operational change initiatives; manage projects of various sizes including planning, execution, evaluation and transitioning to operations teams; responsible for defining, scoping, planning, communication, oversight and execution of the assigned projects; among other duties. BA/BS+84 mos experience; up to 20% domestic and international travel. Send resume to L. Baker, TGW Systems, 3001 Orchard Vista Dr., Ste. 300, Grand Rapids, MI 49546; Ref. PMSI-GRMI. No phone calls please. EOE.

September 30, 2024 | CRAIN’S GRAND RAPIDS BUSINESS | 29

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9/25/24 11:18 AM

THE CONVERSATION

New CEO Joel Bell plots future course for D.A. Blodgett-St. John’s over the next five years Joel Bell was promoted to president and CEO of Grand Rapids-based D.A. Blodgett-St. John’s in late July after serving two years as its chief programming officer. A licensed social worker, Bell has two decades of experience in child and family welfare. He previously worked twice for Bethany Christian Services, including serving as executive branch director in Kalamazoo from 2017 to 2022, and six years in child welfare case management for the state of Michigan.

Under his leadership, D.A. Blodgett-St. John’s is about to begin a strategic planning process to map out the future of the nonprofit, whose services include foster care, adoption, counseling and youth programs. The organization works with about 1,000 children and adolescents annually. | By Mark Sanchez What attracted you to want to become CEO at D.A. Blodgett-St. John’s?

I had the unique benefit of already serving in a leadership role here and getting to know and work closely with the programs and with the other teams. When the need for a new CEO came about when there was a vacancy, I was just interested in applying because for me, these were friends and colleagues that I was pleased to work with already and wanted to continue to do that. I felt that I could both bring a measure of continuity and stability as we transition, but also some new ideas, too. It seemed to be a really good fit given my exposure to the agency and knowledge of it.

How important is knowledge and continuity in a leadership transition?

I suppose there’s pros and cons to it in both a fresh set of eyes versus someone who has been there. For me, having already been working here, already knowing the programs, knowing the people that I’m working with, the huge benefit of course is that my onboarding is that much more simple. Certainly, I have things to learn in my new role, but I already have the advantage of knowing the systems we’re working with, knowing the people we’re working with, knowing the different programs and even the acronyms. In many ways, it makes all of that much simpler. Plus, I’ve had two years to see and develop some perspective on what’s working and what’s not working, what we should continue and build on and maybe what we should reconsider.

What’s next for D.A. Blodgett-St. John’s?

One is that I strive to be a collaborative leader, engaged with my team. As part of that, we’re embarking on a strategic planning process beginning next month. Some of the answers to the question, I’ll be leading many of those discussions but participating with our whole team in considering just that: Where are we going over the next five years? That will be part of our collaborative work together.

D.A. Blodgett-St. John’s this year extended psychiatric services for children

find permanency.

Those are values and commitments that are true for me, but also for my family. We’re also an adoptive family. We have both biological and an adopted child in our home. Those are just important values that we have as individuals, as well as me as a professional.

Joel Bell assumed his current role with D.A. Blodgett-St. John’s in July.

and adolescents to the public. What else has the organization been doing?

We’ve also begun doing an independent living program this year for foster youth. Children in foster care — many of them, sadly — every year are aging out of foster care and entering adulthood, but still need support.

They still need caseworkers and coaches that can give them some guidance. That’s what we have begun doing this year is offering an independent living program for those sorts of youth.

We’re also in other service areas looking for what are we doing well, what can we expand on or grow — things that aren’t necessarily entirely new to us.

(Independent living) is a great example. We’ve been doing foster care for many years. Adding on a service for the older youth aging out of foster care isn’t something entirely new to us. It’s just a new way of serving the same kids that we’ve been serving.

As you look to identify the future and do strategic planning, what’s the opportunity for you?

There is tremendous opportunity in the whole space of family preservation. How do we as an organization and how do we as

a society do better to support families in need so that foster care isn’t even necessary for those children, or at least for many of those children? That’s one area that we and most organizations like us are looking at. How can we be involved (and) engaged in working with families and keeping them intact and making sure they have what they need?

In a similar vein, I think what else is out there for us is just what are the other ways that we can be more rooted in the community where we are serving, listening and identifying the ways that we can be helpful to our community and, where possible, responding to those needs. Part of our strategic planning needs to also lead into greater understanding and appreciation of the needs that are around us and how we can be part of that solution.

You’ve done this line of work for two decades now. What draws you to it?

A few things. One is my own faith commitments have really drawn me to this, and my desire to put my values and commitments into action in serving people who are in a hard spot or a vulnerable spot, and wanting to see families whole, wanting to see children safe and wanting to see children

What are some of those challenges to overcome right now?

The child welfare system, as a whole, is just continuing to evolve. It’s continuing to go through significant transitions with greater emphasis on serving children at home and keeping them home, keeping them out of foster care, which is overall a good and right thing for our state and country to be doing. But that also requires adaptation on the part of service providers.

How do we meet some of the same needs but meet them in a new way? I think those are some of the biggest transitions. In a similar way, providers like us who historically have done a lot of work in the residential service space are finding transitions happening there with greater emphasis on keeping children in family settings and out of residential, which again is a good thing for kids when that can be done safely and their needs can be met. That also means that we as providers need to be transitioning, adapting our services to the new environment where we’re serving.

As you’ve settled in as CEO, how do you see the state of the organization today?

I think our organization is doing well. We are an organization that has a deep legacy of work in this region. On the one hand, we’re continuing to build on that legacy, a legacy of service to vulnerable children and families.

At the same time, we’re in the midst of a lot of transitions in the child welfare system. For an older organization like ours to continue to remain relevant requires that we evolve and change with the changing needs of our community. Those things are happening and happening well, but they also come with a certain amount of challenge of how do we be true to our legacy and what was really good about us, but also how do we pivot and meet new needs in new ways.

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 Advertising & event sales director Jill May, jill.may@crain.com Business development strategist Andy Rasero, andy.rasero@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 PRODUCTION Vice president, product Kevin Skaggs Product manager Tim Simpson Prepress/production director Simone Pryce CUSTOMER SERVICE (833) 830-7446 toll free (845) 267-3031 local line (for any foreign calls) customerservice@crainsgrandrapids.com

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