Ford Airport tracking record travel numbers
Passenger counts exceed pre-pandemic levels amid $600 million expansion
By Elizabeth Schanz
Grand Rapids’ airport is on pace for a second consecutive year of record-breaking tra c as it makes headway on a $600 million expansion to accommodate the inux of travelers.
Gerald R. Ford International Airport’s (GRR) increased passenger counts, which now have risen above pre-pandemic levels, re ect West Michigan’s growing population and a rm the goals of the expansion project, airport ocials say.
Last year, GRR broke its passenger record and served 3,794,915 travelers, a 6% in-
+6%
crease over the airport’s previous record-breaking year in 2019.
Airport o cials expect to exceed 2023’s travel numbers, with 2024 passenger numbers tracking 12.4% ahead of 2023’s yearto-date, according to airport o cials.
2023 percent increase of GRR travelers over the airport’s previous record-breaking year in 2019.
+12.4%
2024 passenger numbers are tracking ahead of 2023’s year-todate, according to airport of cials.
SEE RELATED STORY PAGE 4
“We see 12,000 to 14,000 passengers through the airport every day,” said Casey Ries, GRR’s chief asset development o cer.
“In Grand Rapids terms, that’s more than enough to ll the Van Andel Arena every day.”
Unlike at Michigan’s third-busiest airport in Traverse City, Grand Rapids airport o cials are seeing leisure, rather than busi-
ness travelers, contributing to the growth in passenger counts based on destinations.
“Pre-pandemic, we were primarily a business travel airport,” Ries said. “Today, post-pandemic, we’re seeing a higher percentage of leisure travel. Where we might have really focused on the East Coast and New York markets pre-pandemic, we’re really focused on sun and fun in Florida.”
As a result, GRR added Sun Country Airlines this June, which brought the total number of commercial carriers at the airport to seven. Additionally, GRR expanded its direct ight o erings recently by adding Palm Beach, Fla., through Allegiant Air. In May 2025, GRR is set to add direct ights on Allegiant to Myrtle Beach, S.C., and Jacksonville, Fla.
While Grand Rapids airport o cials are seeing people leave on vacation, GRR also has more inbound travelers, according to airport o cials. With more
See AIRPORT on Page 28
Whistleblower accuses Trinity of retaliatory ring
Cardiologist had worked at Muskegon’s Trinity Health Medical Group for 35 years
By Mark Sanchez
A cardiologist claims Trinity Health Muskegon red him for reporting his suspicion that a colleague was performing unnecessary heart procedures.
In a federal whistleblower lawsuit, attorneys for Dr. Daniel West claim he was rst suspended in June, returned to work, and was then terminated Oct. 28 after working 35 years for the Trinity Health Medical Group in Muskegon.
Trinity Health suspended West on June 17 “with only a vague explanation of a concern related to his ‘behavior’ in the o ce that warranted immediate suspension. It was made very clear that
this suspension had nothing to do with the hospital or patient care,” according to the lawsuit.
“ e true reason for Trinity Health’s decision to re Dr. West was in retaliation for his report that (a colleague) was performing unnecessary surgeries — a report that was supported by the other physicians in the cardiology practice,” per the court ling.
See TRINITY on Page 28
Hearthside Food Solutions les for Chapter 11 bankruptcy
Grand Rapids snack maker amassed $2 billion in debt
By Abby Poirier
e owner of Grand Rapids snack maker Hearthside Food Solutions has led for Chapter 11 bankruptcy as it seeks to eliminate nearly $2 billion in debt. In a Nov. 22 ling in the U.S. Bankruptcy Court for the Southern District of Texas, H-Food Holdings LLC disclosed plans for a restructuring agreement that
would wipe out more than $1.9 billion of the company’s debt while securing $200 million of new capital at exit.
Headquartered in Downers Grove, Ill., Hearthside Food Solutions has contract snack food manufacturing facilities in Grand Rapids, where it also has been the subject of child labor allegations for the past year and a half.
“Today’s announcement marks an incredibly important step forward for Hearthside, our valued customers, and our dedicated team as we continue to
See HEARTHSIDE on Page 27
CONSTRUCTION
A Turner Construction of cial oversees work on Gerald R. Ford International Airport’s new consolidated car rental facility, CONRAC. | ELIZABETH SCHANZ
Trinity Health’s Muskegon hospital campus on Sherman Boulevard.
COURTESY PHOTO
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All requests must now go through Park Township’s zoning appeals board
By Rachel Watson
An Ottawa County judge has ruled in favor of a lakeshore township in a lawsuit over its ban on short-term rentals, dismissing short-term rental owners’ suit and determining that all requests for exemptions to the ban must now go through the local board of zoning appeals.
Ottawa County 20th Circuit Court Judge Jon Hulsing on Nov. 22 dismissed Park Township Neighbors’ lawsuit against Park Township in which the group of short-term rental owners sought to overturn a ban on vacation rentals in residential areas.
Rockford Construction to lead soccer stadium buildout Judge sides with ban on short-term rentals
contractor partners with experienced sports arena and stadium builder | By
Grand Rapids-based Rockford Construction Co. will be the construction manager of the $175 million Amway Stadium project under a joint venture with an Indianapolis, Ind.-based firm experienced in building professional sports arenas and stadiums.
Rockford and AECOM Hunt have formed a joint venture to take on the stadium being developed by private economic development group Grand Action 2.0, executives announced today.
For Rockford Construction, the soccer stadium marks the latest in a long list of the company’s projects on the west side of Grand Rapids, where the construction firm is based. Plainfield Township-based Progressive Companies is the ar-
chitect for the stadium.
AECOM Hunt has had a hand in several noteworthy arena and
stadiums across the U.S., including Little Caesars Arena in Detroit, SoFi Stadium in Los Angeles
Kate Carlson
and Barclays Center in Brooklyn, N.Y. The firm also has another DeVos family connection after working on the Amway Center arena in Orlando, Fla., which is home to the DeVos family-owned Orlando Magic NBA team.
Construction is expected to start next year on the 8,500-seat Amway Stadium on surface parking lots north of Pearl Street and just west of U.S. 131.
“We are thrilled to collaborate with AECOM Hunt to bring this incredible stadium project to life,”
Shane Napper, president and chief operating officer of Rockford Construction, said in a statement. “The Amway Soccer
The group argued the township in 2022 improperly enforced a 1974 ordinance that did not specifically mention short-term rentals, then improperly amended its zoning and general ordinances in 2022 and 2023 to reinforce its position. Park Township Neighbors was seeking a permanent injunction against enforcement of the ban and declaratory relief.
However, Hulsing ruled that because the township “properly amended” its ordinance to disallow short-term rentals outside commercial districts in March 2024 while the case was pending, the court no longer had jurisdiction to make a decision and the complaint is now moot.
“When (the) defendant properly amended the zoning ordinance in March 2024, the entire posture of this case changed,” Hulsing wrote in the opinion. “In reality, there is no longer a legally
Restaurateurs, retailers await ‘cage-free’ egg mandate
New law applies to producers with at least 3,000 hens
By Abby Poirier
At the start of the new year, Michigan consumers will no longer be able to buy eggs produced from caged hens, a change experts say will affect pricing on store shelves and local restaurant menus.
The change in Michigan has been looming for more than a decade. A 2009 law mandated that farmers switch to cage-free egg production by 2019, a timeline the legislature later extended for an additional five years.
The law, which takes effect Dec. 31, will require all Michigan egg
producers with more than 3,000 hens to house them in a cage-free environment as defined by state law. It also prohibits Michigan stores, restaurants and suppliers from selling or purchasing eggs that were not produced in a “cagefree” environment.
For farmers, the clock is ticking. At stake is a $1.4 billion market for egg production. Michigan ranks seventh in the country for egg production, with a combined 15 million hens.
The state’s Animal Industry Act defines a “cage-free housing system” for both indoor and outdoor
applications. Indoor environments must adhere to varied levels of regulations, including for multi-layered or single-level floor systems and for providing “enrichments that allow the hens to exhibit natural behaviors,” such as scratch areas, perches, net boxes and dust bathing areas. The indoor systems must allow a farm employee to “provide care to the hens while standing within the hens’ usable floor space,” per state law. Cagefree systems can’t include common cage systems such as battery,
Rockford Construction and AECOM Hunt will build the Amway Stadium. | PrOGreSSIVe cOmPANIeS
Michigan ranks seventh in the country for egg production, with a combined 15 million hens. | GeTTY ImAGeS
Amway Corp. secured the naming rights of the professional soccer stadium with a $33 million donation announced on Nov. 18. | PrOGreSSIVe cOmPANIeS
This holiday shopping season: A tale of two malls
By Abby Poirier
Officials at the Grand Rapids area’s two major shopping malls are optimistic heading into the 2024 shopping season, despite sharply different visitor traffic trends and mall owners’ priorities for luring in shoppers.
Grand Rapids’ two most prominent malls — Woodland Mall, located at 3195 28th St. SE in Kentwood, and Rivertown Crossings at 3700 Rivertown Pkwy in Grandville — have had to strategize to keep customers after the pandemic decimated visitor numbers.
They are also a tale of two shopping malls amid a decline in mall traffic nationwide.
Woodland Mall has had yearover-year traffic increases in seven of the 10 months of 2024, while Rivertown Crossings’ foot traffic has declined year-over-year in eight of the past 10 months.
Woodland Mall has similarly grown its traffic nearly every month this year compared to 2019, while Rivertown Crossings’ traffic has declined prominently compared to 2019.
Amid two bankruptcy filings by its owner since 2020, Woodland Mall has steadily added new stores, dining options and entertainment facilities that have proven key to growing its traffic. The mall has a 95.5% occupancy rate, and recently refinanced its mortgage to place the property on more solid financial footing.
Within the past three years, Woodland Mall has added: w Offline by Aerie, which opened in early 2022.
w Phoenix Theaters, which opened in spring 2022.
w Versona, which opened in fall 2023.
w Abercrombie and Fitch, which opened in fall 2023.
w Main Event entertainment venue, which opened summer 2024.
w Lego, which opened summer 2024.
In 2020, Woodland Mall parent company Pennsylvania Real Estate Investment Trust (PREIT) filed for bankruptcy, shortly on the heels of a $100 million renovation in 2019 that eliminated the mall’s Sears store and replaced it with Von Maur, Urban Outfitters, Paddle North, Made in Michigan and Black Rock Bar and Grill locations.
With the 49,000-square-foot addition of Main Event, Woodland Mall stepped into the “eatertainment” sector, a post-pandemic shift in entertainment that combines traditional dining with activities like bowling, arcade games, in-
door golf and more.
Main Event operates in 20 states, offering bowling, virtual reality games, billiards, escape rooms and laser tag alongside a restaurant and bar.
The addition of Main Event and the Lego store have expanded the mall’s appeal with families and young shoppers, Lisa Wolstromer, senior marketing director for Woodland Mall, said via email.
“Main Event has quickly become a go-to spot for entertainment, and we’re seeing guests extend their shopping trips to include dining and activities there,” she said. “LEGO has been a hit with kids and collectors alike, especially during the holidays when gifting is at the top of our shoppers’ minds. These tenants create a dynamic experience, making Woodland Mall a destination for more than just shopping.”
Meanwhile, Rivertown Crossings seeks to reverse trends of declining foot traffic, aging infrastructure
and higher vacancies as a new owner takes over.
The mall in August sold to Memphis, Tenn.-based Poag Development Group, which has promised to invest in redevelopment at the approximately 1.2-million-squarefoot mall. At the time of the deal, Rivertown Crossings had an occupancy rate of 88%, Poag officials said at the time.
Poag bought the property from Brookfield Property Partners LP, which had acquired Rivertown Crossings in 2018 for $60.6 million, according to property records.
The company first plans some cosmetic upgrades to the property, which CEO Josh Poag said has not had capital allocated to it in the past few years.
Initial investments in the coming months will target issues like potholes and overgrown landscape on the property, Poag told Crain’s Grand Rapids Business at the time of the sale.
The expansive surface parking on site is one of the areas that will likely see some changes, with Poag noting that he “intends to densify the site,” with possible uses including new retail, hotel or residential redevelopment.
“We feel there is a lot of value to add to the mall in the years ahead to elevate the shopping experience and community gathering potential,” Edward McHale, general manager of Rivertown Crossings, said via email.
At their lowest point, U.S. malls experienced a 96% decrease in monthly traffic between April 2019 and April 2020, according to data from location analytics company
Placer.ai.
However, a Placer.ai report earlier this year showed that malls across the nation are increasing traffic as shopping centers gain back footing lost during the pandemic.
In Grand Rapids, Woodland Mall performed significantly above the national average for foot traffic while Rivertown Crossings lagged behind with an average 27% decline in monthly traffic in 2024 when compared with pre-pandemic levels.
However, officials at both malls are optimistic about this year’s holiday shopping season and anticipate strong crowds.
As Rivertown Crossings mall faces a steady decrease in traffic, McHale said it’s “hyper-focused on cultivating free and family-friendly activities this holiday season” to help attract visitors to the shopping center, hoping to maintain or improve on the 1.2 million shoppers Rivertown Crossings saw last holiday season
This year, the mall has added events like breakfast and story time with Santa over the holidays to add in-person experiences.
“We are hopeful we will get a strong crowd this year, as we are seeing an upward trend in traffic the last few months,” he said. Holiday spending this year could reach a record high, according to a recent survey by the National Retail Federation (NRF), which estimates that U.S. holiday shoppers will spend between $980 billion and $990 billion during November and December, a significant increase over last year’s record spending total of $955 billion.
Airport officials pursuing plans for first on-site hotel
By Elizabeth Schanz
Gerald R. Ford International Airport officials are pursuing plans to add the facility’s first on-site hotel as part of ongoing expansion projects to support the airport’s growth, Crain’s Grand Rapids Business has learned.
Executives disclosed that they want to include an on-site hotel near the airport’s main terminal that ties in to a broader $600 million expansion plan known as Elevate. A hotel developer and brand have not yet been identified.
“As we continue to listen to the needs of our community and its plans for growth, we have identified an opportunity to develop a hotel near the terminal building that would serve passengers traveling to and from West Michigan,” airport President and CEO Tory Richardson said in an emailed statement to Crain’s. “This initiative will further support the economic prosperity of our region by fueling business and tourism efforts.”
Building an on-site hotel would first require the completion of a plan currently in motion to relocate the federally owned and operated air traffic tower that’s located on
top of the airport terminal. Any new expansions can’t block the tower’s line of sight to the airfield.
The construction of a hotel is “very dependent on that air traffic control tower moving because the hotel would be tall enough that it would block that line of sight for the airfield,” said Haley Abbas, the airport’s marketing and communications manager. “The goal is that it will happen. It’s just the tower project really has to happen first. So it’s kind of almost a little bit of a domino effect here.”
The plan to relocate the air traffic tower is underway. Airport officials have worked with the Federal Aviation Administration and recently completed the design of the tower. The next step is securing funding from federal partners to move into the construction phase, Abbas said.
Relocating the traffic control tower would take about three years once construction on it begins, Abbas added.
The planned hotel would sit with the new north parking garage slated to be completed as part of Elevate, Abbas said. Once the tower is relocated, GRR can start construction on 4,000 new covered parking spots that will connect to the airport’s existing four-story structure.
“Our region (is) really becoming a destination. That’s just another piece that will further help to reach that and accommodate that market,” Abbas said of the plan for a hotel.
Doug Small, president and CEO of Kent County’s convention and visitors bureau Experience Grand Rapids, has also served on the airport authority’s board for several years.
“(The hotel project) is at a time where it’s becoming more serious that it will, it will happen,” Small said.
“I’ve been on the (GRR) board for five or six years myself, and I know the discussion was being had when I joined the board, though
I’ve never heard it as serious as it is now. That’s why I’m pretty confident that a deal will be struck soon.”
While Small noted many existing overnight stay options around the Grand Rapids airport, an on-site hotel would be the “next step in the evolution of the airport,” Small said. Establishing a hotel at GRR would create a convenient offering for people who have delayed flights to stay the night and accessible space for corporate meetings.
“I think an airport our size — it’s going to probably do over 4 million passengers this year — has shown that the demand is there for a (hotel) property on-site, for those peo-
ple that want to get in and out,” Small said.
The airport is on track to have a second consecutive year of a record number of travelers. Last year, GRR broke its passenger record and served 3,794,915 travelers, a 6% increase over the airport’s previous record-breaking year in 2019. Airport officials expect to exceed 2023’s travel numbers, with 2024 passenger numbers tracking 12.4% ahead of 2023’s year-to-date.
Launched in 2018, the $600 million Elevate expansion program encompasses six different projects to account for passenger growth. That includes the new 90,000-square-foot Concourse A that was completed in June 2023 and added eight new gates, bringing the total number of gates to 14.
Two other Elevate projects are in progress. CONRAC, Michigan’s first consolidated rental car facility, broke ground in 2023, and the Terminal Enhancement Project (TEP) that started construction this April. Other Elevate projects include adding a federal inspection station (FIS) to support nonstop international commercial passenger flights, the relocation of GRR’s air traffic control tower, and additional parking capacity.
Relocating Gerald R. Ford International Airport’s air traffic control tower will be needed before an on-site hotel can be built.| COURTESY OF GERALD R. FORD INTERNATIONAL AIRPORT
Woodland Mall has been outperforming national trends for mall traffic since the COVID-19 pandemic. | ABBY POIRIER
New modern design firm lists luxury spec house on Lake Macatawa for $3.5M
By Rachel Watson
A new residential development firm in Douglas has its first speculative home up for sale — a spacious hilltop residence on Lake Macatawa inspired by California’s modern oceanfront architecture.
Mark Lauterbach and his cousin, Douglas Kopp, listed their first house produced under the banner Modl Development, a modern residential development firm they recently co-founded in Douglas as an offshoot of Mark Lauterbach’s solo venture, Lauterbach Architecture LLC.
Dubbed “Interlok House” for its Japanese-inspired interlocking courtyards, the nearly 3,500-squarefoot, three-bedroom, four-bathroom residence was completed in August and listed for $3.5 million.
The house, constructed by Holland-based 42 North Custom Homes, is perched on the crest of a double lot with 83 feet of water frontage on the northeast side of Lake Macatawa in Holland Township. The builders tore down a 1920s-era cabin that was “falling apart” to make way for the house, Lauterbach said.
Interlok House has three private bedroom suites, all with lake views, and it integrates high-end features like home automation and audiovisual systems, energy-efficient materials, Thermador appliances and a garage with electric vehicle chargers.
Kersh Ruhl and Lauri Sisson, of Michigan Homes and Cottages/ Coldwell Banker Woodland Schmidt in Park Township, have the listing.
“This is a little bit of an unusual product in that it’s luxury, it’s on the water, and it’s a spec home,” Ruhl said. “There’s not a lot of (waterfront) high-end new construction that’s a spec home.”
Chasing a new passion
Lauterbach worked for Chicago-based CallisonRTKL for more than 35 years on large-scale commercial real estate projects. He left the firm in 2022 to pursue his burgeoning interest in modern residential design through Lauterbach Architecture.
His first big endeavor was designing six homes in the 13-lot private development Wildwood Lane Condominiums near Lake Michigan in Douglas, including one for himself and one across the street for Kopp. Lauterbach is now a permanent resident of Douglas, while Kopp’s primary residence is in Seattle, and the Douglas condo is his summer home.
“When we did that project, (Kopp) said, ‘Oh, this is fun. I like this. Let’s do more of this.’ So that’s what triggered this whole thing,”
Lauterbach said of starting Modl Development with Kopp. Kopp, former CEO of the global counseling services organization FFT LLC in Seattle, also has had a longtime interest in residential development. He flipped several homes over the years in Seattle and Scottsdale, Ariz., according to Lauterbach. Kopp handles the business side of Modl, while Lauterbach focuses on design.
Lauterbach said his residential designs are partly inspired by 20th century American designers such as Charles and Ray Eames and Pierre Koenig, who spent the bulk of their careers shaping California’s modernism movement. His travels in Japan also informed his design philosophy.
“We sort of draw from the simplicity and restraint that those kinds of architects did,” he said. “(We’re) trying to bring it into the 21st century with all of our automation and all the stuff that we have going on, construction-wise, just trying to adapt and let it evolve.”
Lauterbach said it has been satisfying to be able to work on a smaller scale with residential design.
“The projects that I worked on for most of my career were all million-plus-square-foot, mixed-use projects in Japan and China and other places, and you never really can get to the level of detail, because it’s just so large, and it’s so difficult. But you do a 3,500-squarefoot house for a client or for yourself, and you’re at a much finer-grain detail,” he said. “It’s like you’re hand-crafting something.”
Interlocking influences
Interlok House was designed specially for its setting. It faces south to catch the most natural light, and it’s on the hilltop to give it a set-apart feeling from the neighboring homes.
Lauterbach said he finds that Michigan and California have “a similar laid-back vibe,” but Michigan’s coastal architecture tends to be more traditional. With Interlok House, he wanted to take the typical modern Malibu beach house and transpose it into a Michigan setting. He toned down the usual palette from bright whites to soft, warm hues, which he feels blends into the surroundings of Lake Macatawa.
To maximize the 100-foot lot and best “sell” the lake frontage while also maintaining privacy, Lauterbach oriented the garage to be side loading and chose an interlocking courtyard design for the home.
Lauterbach chose as many natural materials as possible, like limestone blocks for the garage walls, cedar siding on the upper part of the
house and a cedar wood deck. Instead of pavement, he chose different colors of crushed gravel and marble chips laid out in a geometric pattern in the motor court, framing two different species of Japanese maples. In addition to adding visual interest, the gravel helps with stormwater management.
In addition to the garage and the main body of the house, the other “pod” that makes up the interlocking shape is the primary main-level suite that opens onto the motor court. Despite being set apart from the main structure, its windows are oriented to offer a clear sight line through the house and out onto the lake.
Casement windows are placed strategically to maximize the lake and capture lake breezes and sounds.
“We positioned them so they crank out the right direction, so it captures the sound instead of opening the wrong way, where you wouldn’t hear the sound,” he said. “I like to get into that level of detail.”
Marrying form and function
The ground floor contains the main living spaces, including an open-concept kitchen, dining and living area, a butler’s pantry, guest bath, office and laundry room. The other two bedroom suites complete the balance of the home, structured as two wings on the second floor.
All of the bathrooms feature Toto Washlet bidets, heated towel bars and radiant heated terrazzo tile floors.
“We just kind of did convenient things that we would like to have,” Lauterbach said. “One of our mantras that my cousin and I have for
our company when we’re doing these houses is … ‘Would you live in this house?’ and (the other) is … ‘The details matter.’”
Notable features on the main floor include a two-story bank of windows, a 12-foot kitchen island and a massive linear gas fireplace with limestone surround. The deck has a metal snow grate between the house and the planks to enhance drainage.
The interior floors are white oak, and many of the walls are covered in rift oak plywood sheets with aluminum dividers to add visual interest.
“We wanted to warm the house up, but it’s also very sophisticated,” Lauterbach said. “It comes off looking super refined and more like furniture-quality grade for some of the wall surfaces.”
The cabinetry is matte white, and the builders added white, horizontal Japanese mosaic tile to the kitchen backsplash to hearken back to mid-century tile patterns.
To give it the “modern sensibili-
ty” they were striving for, Kopp and Lauterbach staged the home with furniture from their own collection, including Eames-designed dining chairs from the Herman Miller brand and a Womb Chair from Knoll, Lauterbach said. They’d be willing to part with the furniture at an additional, negotiated price.
About the price
Ruhl, the broker, said the house is priced at $1,000 per square foot factoring in new construction costs, “elite” materials and design, and the property’s nearly half-acre of water frontage.
While it has garnered strong online interest and solid attendance at a broker open house when first listed, Ruhl said he has not yet received any written offers.
“Time of year has something to do with that, and honestly, a lot of people were waiting for the election to happen before making any moves,” he said.
This new build spec house on Lake Macatawa, completed in August, is for sale for $3.5 million. | SKYVIEW EXPERTS
The architect chose to use crushed gravel of various hues in a geometric pattern in the courtyard instead of concrete for aesthetic and sustainability reasons. SKYVIEW EXPERTS
The kitchen, dining and living areas are open plan with a two-story bank of windows. SKYVIEW EXPERTS
All three of the bedroom suites have lake views. | SKYVIEW EXPERTS
SBAM starts women’s entrepreneurial business fellowship
By Elizabeth Schanz
As a small business owner, Allison McDonough tackles many tasks both in and out of her comfort zone.
Nine years ago, McDonough combined her background in marketing and passion for dogs to establish Fido & Stitch LLC, a Grand Rapids specialty pet products and services business. Since then, McDonough has grown her business to two other West Michigan locations in Rockford and Jenison. She has 17 employees across the stores and hit $1.2 million in revenue last year.
Still, after owning a business for nearly a decade, McDonough sought out support in areas of the business where she didn’t feel as strong.
Enter the inaugural Women’s Entrepreneurial Fellowship, a program launched by the Small Business Association of Michigan Foundation to support second-stage, women-owned businesses through mentorship, business resources and cohort connections.
“Being a business owner, especially a small business owner, you wear many hats, and I can’t be good at everything,” McDonough said. “I’m great at marketing. I’m great at leadership and management, and great at strategy. … I’m looking forward to learning more about the topics that I’m not as passionate about and not as versed in.”
An arm of the Small Business Association of Michigan, the foundation officially kicked off its eightmonth fellowship on Nov. 18. The inaugural class of 11 women-owned businesses across Michigan will have access to various support systems to advance their business, reach goals and navigate challenges.
The fellowship will consist of a one-on-one mentorship program with established business leaders, monthly learning sessions, networking opportunities, guidance on growth resources, in addition to financial assistance in obtaining business certifications, said Brian Calley, SBAM’s president and CEO.
To qualify for the fellowship, businesses were required to have been in operation for at least two years, generate a minimum of $500,000 in annual revenue and have at least one employee in addition to the owner.
The program aims to create renewed confidence and strong support systems in which participants can form long-term connections, Calley said.
“Those peer-to-peer relationships are very powerful, and that’s what I’m most excited about,” Calley said.
Heather Houtman founded Holland-based travel agency Winsome Travel Design in 2018. As the owner of a primarily virtual business with a small staff of just two independent contractors, Houtman said she was looking to join the fellowship as a chance to learn from other business owners.
While she applied for the fellowship thinking, “there’s no way in the world that they’re going to pick my small business,” Houtman was chosen to be part of the inaugural class. Houtman said she looks forward
to the program’s financial strategy resources, planning tools that will help her find a work-life balance and connecting with other women going through the same struggles and successes she experiences.
“Just feeling that there are other businesses that are struggling, like mine, that also felt very positive,” Houtman said. “It’s like you’re not really on your own little island, you have support, whether you know it or not.”
SBAM officials note that women-owned businesses make up more than 43% of the state’s 902,131 small businesses, which is higher than the national average.
The Women’s Entrepreneurial Fellowship is a small part of the broader $75 million Small Business Smart Zones and Business Accelerators initiative that was approved by the Michigan Legislature using federal American Rescue Plan Act funds.
With the appropriation, the Michigan Economic Development Corp. established the Small Business Support Hubs program in June 2023. MEDC awarded 27 organizations that were designated as “on-the-ground support hubs” for small businesses, Calley said. SBAM is one of them.
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Fido & Stitch in Grand Rapids’ Monroe North neighborhood. | eLIZAbeTH ScHANZ
Allegan leaders eye reforms to tackle housing insufficiencies
By Rachel Watson
As Allegan County employers year after year rate a lack of workforce housing as the top barrier to their growth, local officials are taking steps to address the supply shortage with zoning reforms that could make the county more development friendly.
Each year, economic development organization Lakeshore Advantage Corp. conducts a survey of 120 employers in Ottawa and Allegan counties. The last several surveys consistently found housing supply and affordability to be among the top barriers to their growth.
“Our employers are clearly telling us that they see housing as the leading issue,” said Mandy Cooper, vice president of strategic initiatives for Lakeshore Advantage.
In the past, people would follow jobs — now jobs follow people, Cooper said. And if people can’t find housing, the employers will look elsewhere to expand.
Last year, Allegan County part-
Bowen found that Allegan County issued a total of just 3,688 residential building permits — 369 permits on average per year — between 2013 and 2022. To close the housing gap, the county would need to more than triple that number to about 1,243 permits per year between 2022 and 2027.
The study found that as of 2022, there were no rental housing projects in the development pipeline in Allegan County, and only four for-sale housing projects planned or proposed totaling 138 units in Saugatuck and Douglas.
In August, the Allegan County Community Foundation tapped outgoing Ottawa County Commissioner Chris Kleinjans for the new role of community impact officer for housing to mobilize public and private stakeholders to address the housing shortage.
“Now that (the shortage) is defined, it has … created more opportunities for discussion with various municipalities and local units of government about how we as a county are going to address this,” Kleinjans said.
The study found Allegan County would need an additional 6,214 units between 2022 and 2027 to meet demand — 1,885 of those rental and 4,329 for-sale.
nered with the Allegan County Community Foundation to quantify the housing shortage. With the backing of corporate and nonprofit partners, the foundation launched the Allegan County Housing Initiative, hiring Bowen National Research to conduct a housing needs assessment like the ones it recently completed for Kent, Ottawa and Muskegon counties.
The study found Allegan County would need an additional 6,214 units between 2022 and 2027 to meet demand — 1,885 of those rental and 4,329 for-sale. The greatest need for rental housing was at the low end of the pricing spectrum with rents of $1,096 or less, while the greatest for-sale need was for homes priced between $233,867 and $379,600 and at $379,601 and higher.
As part of the study, Bowen also surveyed employers, with 61.5% saying they have experienced staffing issues as a result of the housing shortage, supporting Lakeshore Advantage’s findings.
based elsewhere tend to eye areas closer to urban population centers for their projects, which already have the utilities infrastructure in place, he said.
“I think the reason you’re not seeing a lot of homegrown developers is it’s very complicated (to build the infrastructure), and it takes a lot of time and a lot of capital,” he said.
Allen Edwin Homes is among the few developers pursuing housing projects in Allegan County.
While Kleinjans is still in the early days of his role, he said a big focus will be on zoning reform. He wants to get Allegan County added to the Michigan Zoning Atlas to give developers a tool to identify available land and where certain types of housing can be built, and to help municipalities identify zoning reform opportunities, he said.
A few municipalities in the county have already made progress on zoning reform, Kleinjans said. For example, the city of Fennville overhauled its zoning code this fall, and Cheshire Township in south central Allegan County reduced its minimum lot sizes to allow construction on smaller parcels.
“That creates capacity,” Kleinjans said. “... The solution isn’t going to come from some monolithic development company coming in and dropping 6,000 units in the middle of the county. It’s going to come from everybody seeing the need and realizing that they can (do) what they’re comfortable doing.”
Kleinjans said one of Allegan County’s areas for improvement is communication and coordination between the county and the local units of government to share ideas and best practices for drawing new workforce housing development.
That could include increasing municipalities’ awareness of gap financing tools for developers, like brownfield tax increment financing and other tax incentive and grant programs available at the state level. Some of the municipalities in the county have local brownfield redevelopment authorities, while others could take advantage of the county’s.
Kleinjans aims to have “a discussion about how we can create an environment where, if you’re a de-
veloper from outside the area, we are making a welcoming environment for you to come and consider your project.”
Dan Larabel, land development manager for large Portage-based homebuilder Allen Edwin Homes, said he would describe Allegan County as one of many areas in Michigan that is “undersupplied” when it comes to housing, and that’s partly because the county doesn’t have a lot of developers headquartered there. Developers
The Allegan City Council on Nov. 12 approved Allen Edwin Homes’ rezoning and site plan requests for 42 units of for-sale and rental housing in a project it’s developing called River Ridge Village on just more than 7 acres on the northwest side of town.
Larabel added that Allen Edwin Homes hopes to apply for brownfield TIF incentives for River Ridge, which would allow it to set aside some of the units for the “workforce/missing middle” income bracket of 80% to 120% of area median income, an income range sorely in need of housing, per the county’s needs assessment.
Developers are applying for brownfield TIF incentives for River Ridge. | ALLEN EDWIN HOmES
A screenshot of Allegan County’s GIS map shows a 3-acre parcel in Fennville (outlined in blue) that Tangram Development Group LLC is targeting for a 60-unit workforce apartment project called Cider Cove. | ALLEGAN COUNTY PARCEL VIEWER
The Allen Edwin Homes project River Ridge Village would include 42 units for sale and rent on the northwest side of the city of Allegan.
| ALLEN EDWIN HOmES
Construction industry leaders optimistic for 2025
By Kate Carlson
West Michigan construction executives are optimistic heading into 2025 with more certainty after the presidential election, though they anticipate a soft start to the year and labor shortages continuing to be a challenge.
Members of the Associated Builders and Contractors (ABC) West Michigan chapter are “very optimistic” across every construction sector about 2025, said ABC West Michigan President
ids-based Rockford Construction Co. have been excited to see interest rates tick down recently, especially since housing projects are interest-rate sensitive and Rockford is working on multiple housing project deals.
“We’ve got some great opportunities in housing, that’s something that’s coming along quite nicely and we see ourselves continuing to pursue that,” said Shane Napper, president of construction and chief operating officer of Rockford Construction.
“There are some great projects regionally and there will be associated challenges that come with that, but not anything substantially new.”
Greg George, ABC West Michigan President and CEO
and CEO Greg George. He expects a soft first quarter followed by growth in the second quarter and beyond into 2026 and 2027.
“There are some great projects regionally and there will be associated challenges that come with that, but not anything substantially new,” George said.
Executives at Grand Rap-
“There are a lot of people doing housing right now, and while we do have a deficit, there is stuff coming.”
West Michigan’s industrial sector also continues to be “extremely strong,” helped by big players like Microsoft looking to add data centers, Napper said. Additionally, he sees growth in retail and health care projects, with office as the most challenged sector.
A 2025 national construction forecast from JLL predicts a modest nationwide construction industry compared to an “incredibly strong” 2024 performance. Interest rate cuts and increased lending will cause a more robust
round of construction starts later in the year, and drive net spending growth, according to JLL.
Supply chain issues have mostly balanced out after being negatively affected for several years by the COVID-19 pandemic, and a shortage of skilled workers continues to be the industry’s top issue, George said.
“That’s just a continued thing,” George said, referring to the labor shortage. “Contractors are always looking for great talent, and have
had some success going out of industry and looking for folks who know how to manage projects in other fields.”
Napper echoed the sentiment that talent shortages remain the top issue for contractors.
“We are making progress, we’re just not making as fast of progress as we need,” Napper said. “As we start looking at these large projects (throughout West Michigan) we need the people to do the work. When you add up the amphitheater, (Grand Rapids) Public Museum, river restoration, Fulton & Market, soccer stadium, Microsoft and any other projects, it adds up pretty quickly. We need to continue to work on telling people to come into an industry to build what everyone needs.”
industry has more certainty now than pre-election, George added.
This aligns with design firms in the ABI report for October indicating that many of their clients were awaiting outcomes of the November election to decide how to move forward on projects.
“We were seeing some pause around what the new regime would look like, which is always the question every four years,” Napper said. “With Trump now heading to office, obviously how he will think about tariffs and borders leads us to (believe the U.S.) will continue to onboard here in the states and I see manufacturing continuing to grow.”
The American Institute of Architects/Deltek Architecture Billings Index (ABI), which is considered an early indicator of economic conditions in the construction industry, had a flat score of 50.3 for the month of October after 20 months of scoring below 50. A score of 50 indicates that the number of architecture firms reporting declining billings is equal to the number of firms reporting an increase in billings.
Architectural firms are hopeful that revenue will grow an average of 1% in 2025 compared to 2024 revenue levels, according to a survey conducted by the American Institute of Architects (AIA). Of the firms that responded to a national AIA survey, 73% expect to see at least slight net revenue growth from 2024 to 2025, while 26% expect to see a decline in net revenue in 2025.
Election results
George also said that the resolution of the November presidential election is a positive for the industry.
While President-elect Donald Trump has yet to take office and begin specific policy plans, the
One potential headwind, though, could come from a Trump administration crackdown on undocumented immigrants. The founder of Global Detroit, a regional economic development organization focused on immigration, recently told Crain’s Detroit Business that the construction industry, which relies on undocumented workers, could feel the effects of a shrinking labor pool.
On the state level, George is watching the Legislature’s lame duck session where the future of paid sick leave changes and apprentice-to-journeyman ratios could be determined, both of which could negatively affect contractors, he said.
Senate Bill 895 would revise the maximum 3-to-1 ratio of registered apprentices to master electricians on job sites to 1-to-1, which is the ratio it had been for decades before Republicans changed the requirement in 2016.
“You have a limited amount of journeymen and folks able to train and there are projects already scheduled and those changes will cause an increase in cost and schedules,” George said. “There is a shortage of skilled professionals in the industry as a whole, so you would be able to train far fewer apprentices.”
West Michigan construction leaders anticipate a soft start to 2025 but an overall positive year as project pipelines remain strong. GETTY mAGES
Lawsuit targets Saugatuck’s short-term rental cap
By Rachel Watson
A group of residents and business owners seeks to overturn the city of Saugatuck’s new cap on short-term rentals, arguing that city council members who approved the cap may have had conflicts of interest.
Saugatuck Neighbors, a nonprofit group formed in August by a coalition of residents, business owners and community leaders, filed suit against the city of Saugatuck on Sept. 23 over its cap on short-term rentals. The group, whose registered agent is Realtor Tammy Kerr, seeks to invalidate the new ordinance.
Kyle Konwinski, a partner at Grand Rapids-based Varnum LLP, is representing the plaintiffs.
“The city charter wasn’t followed, and people impacted by the city’s new regulations believe that the charter should be followed when the city enacts new ordinances,” Konwinski said, adding that his clients would like the process to be “redone.”
Konwinski also represents a group of short-term rental owners in Ottawa County who are suing Park Township in an effort to overturn the township’s ban on shortterm rentals.
The Saugatuck lawsuit alleges
the city “ignored the City Charter’s provisions for resolving potential conflicts of interest amongst public officials that vote to enact new ordinances,” which stipulates that council members can’t vote on an issue if they or a family member would financially gain from the policy.
The group claims the charter was not followed during several city council meetings because the council didn’t actually vote to determine whether a conflict existed. Instead, the group claims the city council asked the city’s attorney for his opinion on whether a conflict of interest existed, and accepted it without voting on it.
The suit also contends that the city council “incorrectly determined” that Lauren Stanton, a council member who was serving as mayor at the time of the vote, did not have a conflict of interest despite owning property in one of the districts that was excluded from the cap. Stanton has since been elected mayor pro tem and continues to have a vote on the city council.
“Mayor Stanton undoubtedly ‘may’ receive a ‘gain or financial benefit’ as a result of the new ordinance because the Mayor voted to exclude her residence from the new ordinance, which has the effect of financially benefiting her
property value,” the court filing states, arguing that Stanton should not have been allowed to vote.
Stanton told Crain’s Grand Rapids Business in an emailed statement that the city stands by the ordinance.
“The city remains committed to defending our lawfully enacted regulations when it comes to Short Term Rentals and denies that there are any viable claims made in the Saugatuck Neighbors’ complaint,” she said.
The city voted to adopt the shortterm rental ordinance, which caps the number of rentals allowed in R1 residential zone districts to 20% of the number of dwelling units in each district, in a 4-2 vote on Aug. 26.
Under the terms of the ordinance, current vacation rental owners will be allowed to keep their licenses until selling or transferring their property. If the city at any point dips below the number of allowable short-term rental licenses for R1 districts, applicants in the queue will be selected to receive licenses via a lottery system.
City officials in favor of the cap argued that the policy change was necessary to protect the shrinking pool of housing for year-round residents. Short-term rental owners contended that the move would negatively affect their property val-
ues, since the short-term rental licenses wouldn’t transfer to subsequent owners.
The city formed a task force to study the issue in March 2023 following an increase in noise, nuisance and trash complaints over the years. City Manager Ryan Cummins previously told Crain’s that those concerns particularly accelerated during the pandemic, when more people were looking for socially distanced lodging options.
“I think our planning commissioners and our short-term rental
task force members, and ultimately, our city council, have thought about all of this very carefully and have taken their time to study it, and now they’re at the point where they’re making some decisions,” he said in July. “It’s all about finding the right balance.”
Two of the three city council members who campaigned on the ordinance — Stanton and City Councilman Scott Dean — were re-elected to the council on Nov. 5. A third, former Mayor Pro Tem Helen Baldwin, was defeated.
The small lakeshore community of Saugatuck set a 20% cap on short-term rentals in designated residential areas. | GeTTY ImAGeS
Worker accuses state rep’s hop farm of labor violations
By Abby Poirier
A migrant worker formerly employed by West Michigan Hopyards LLC is accusing the company of wage theft and other labor violations, claims its owners — including a current member of the Michigan House of Representatives — called “politically motivated” and “frivolous.”
Jose Magana Garcia, a migrant worker employed at West Michigan Hopyards from 2015 to 2023, is accusing the business of withholding pay, failing to provide employees access to bathroom facilities, and other Fair Labor
locations in Rockford and Greenville, is co-owned by Jason Jaekels and fifth-generation farmer and state Rep. Bryan Posthumus, a Republican representing the 90th district, which spans a chunk of northern Kent County.
According to documents filed Nov. 6 with the U.S. District Court for the Western District of Michigan, Garcia claims that West Michigan Hopyards failed to compensate him at the end of each working day, as promised.
“I have done nothing but help (Alvarez’s) client during the nearly ten years he was an independent contractor for my farm.”
Bryan Posthumus,
Michigan State Representative
Standards Act (FLSA) violations, according to a federal lawsuit.
West Michigan Hopyards, a 33acre commercial hops farm with
attention of both owners, who disregarded his concerns.
Garcia worked 10 to 12 hours per day, sometimes longer, but “was not compensated for all hours worked,” nor was he paid in a timely manner, according to court documents.
“Plaintiff often went 20 days without receiving compensation for the work that was completed,” according to the lawsuit, which also claims instances in which Garcia’s pay “was missing hours.”
According to the complaint, Garcia brought the matter to the
Garcia claims the earnings listed on his W-2s were “significantly less than what he was actually paid,” according to the complaint, which also alleges West Michigan Hopyards failed to provide drinking water to workers or portable bathrooms when working in the fields.
“Plaintiff would travel miles away from the farms to the nearest gas station to use the bathroom,” according to the lawsuit.
“Three of the farms had bathrooms at the main building, but were either out of service or blocked by an aggressive dog preventing access.”
The lawsuit also claims the company did not pay workers’ wages directly, instead issuing a single check to the group of workers to be divided among them.
Robert Alvarez, a founding member of Wyoming-based Avanti Law Group PLLC who made headlines for suing tech billionaire Elon Musk and his America PAC for fraud on Elec-
tion Day, is representing Garcia in the lawsuit. He declined to comment on the West Michigan Hopyards lawsuit, which seeks class action status.
In response to a request for comment from Crain’s Grand Rapids Business, Posthumus said the case was “clearly a politically motivated, frivolous lawsuit.”
“Within 24 hours of the election, this attorney filed suits against both Elon Musk and my farm,” Posthumus said. “The truth is, my farm always did well by our employees and independent contractors.”
“I have done nothing but help (Alvarez’s) client during the nearly ten years he was an independent contractor for my farm,” Posthumus wrote in an email.
“Not only did we provide opportunity for him, but I also personally advocated for his citizenship.”
The lawsuit seeks payment for Garcia’s unpaid wages, various damages, costs and attorney fees, and “other and further relief as the Court may deem just or equitable.”
A hearing has yet to be scheduled in the case, which is assigned to Judge Robert Yonker.
West Michigan Hopyards, which operates farms in the Greenville and Rockford areas, is being sued by a former migrant worker over alleged labor law violations. | FILE PHOTO
Posthumus
Bell’s to sell U.P. brewery Upper Hand to California firm
By Abby Poirier and Joe Boomgaard
Bell’s Brewery’s parent company is selling off Upper Hand Brewing in a deal it expects to close in early 2025.
The Escanaba-based 20-barrel production facility and taproom opened in 2014 as a U.P. offshoot of Kalamazoo-based Bell’s Brewery Inc., which at the time was still owned by founder Larry Bell. The brewery initially focused on serving just the U.P. market, but later expanded its footprint statewide and into Wisconsin and Minnesota.
New Belgium Brewing Co., now the parent company of Bell’s Brewery following its sale in 2021, informed workers on Wednesday Nov. 20 that the company was being sold to Seven Beverages Inc., a San Marcos, Calif.-based firm that sells brewery equipment and previously operated a brewery in California.
In a statement to Crain’s Grand Rapids Business, New Belgium said the business has entered into a definitive agreement to sell the brewery and taproom to Seven Beverages.
“Thank you to the Upper Hand team for their years of hard work, creativity, and innovation,” New Belgium CEO Shaun Belongie said in a statement. “The ownership, pride, and dedication to brewing exceptional craft beers have resonated within the local community and are a testament to their dedication and talent. We’re excited to see the new owners continue the legacy of incredible craft beer in Northern Michigan.”
According to the statement, Seven Beverages still needs to secure licensing from the Michigan Liquor Control Commission and plans to continue operations at Upper Hand. New Belgium will run the brewery until the completion of the sale.
Upper Hand was included in the 2021 sale of Bell’s Brewery Inc. to Australian-based Lion Little World Beverages, which is owned by Japan-based Kirin Holdings. Lion previously acquired New Belgium in 2019. A 2023 reorganization put Bell’s as a division of New Belgium.
Bell’s and Upper Hand produced a combined 467,000 barrels of beer in 2023, allowing the company to reclaim the title of largest brewery in Michigan.
News of the sale comes as the New Belgium CEO told industry publication Brewbound last month that the company has faced challenges in figuring out what exactly it wants to do with the Bell’s family of brands, which includes the cult-favorite Two Hearted IPA and popular Oberon Ale that filled out its national distribution footprint in 2023.
“We tried to take that brand to a more national footprint, and that’s a struggle right now,” Belongie told Brewbound. “It’s hard in my mind to see a regional brand getting and replicating what New Belgium, Boston Beer, Sierra Nevada
have done. I think that’s going to be really challenging. There’s just so many damn breweries out there and all wonderful, but it makes it a lot harder to extend that.”
Upper Hand Brewery is based at the Delta County Airport business park at 3525 Airport Road in Escanaba. The location includes a small indoor taproom plus outdoor seating and a beer garden.
In West Michigan, the company distributes mainstays Upper Hand IPA, Upper Peninsula Ale, Laughing Fish Golden Ale and other seasonal beers through Alliance Beverage Distributing.
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Inside the Upper Hand Brewery taproom near Escanaba in the Upper Peninsula. FILe PHOTO
Upper Hand Brewery near Escanaba in the Upper Peninsula. | FILe PHOTO
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Vegan, gluten-free restaurant plans May opening in Creston
By Abby Poirier
The owners of a Grand Rapids-based gluten-free and vegan bakery will open a similarly minded restaurant on the ground floor of a new mixed-use apartment development in the city’s Creston neighborhood.
The breakfast and lunch restaurant called Fika, a new concept from the owners of Rise Authentic Baking Co., is slated to open this spring, serving a fully plant-based and gluten-free menu.
Fika will be located at 1359 Plainfield Ave. NE, on the ground floor of the newly opened Lofts on Grove apartments.
When it opens in May, the approximately 3,100-square-foot restaurant will serve breakfast and lunch items, including baked goods by Rise and coffee from Squibb Coffee and Wine Bar. Fika will also include a small market selling local baked goods, beverages and snacks.
been toying around with for some time,” he said, adding that “(it’s) always been a dream of mine.”
Van Liere, who has been eating a vegan diet for 15 years, noted a lack of exclusively vegan restaurants in the Grand Rapids area after the closure of Bartertown Diner, which rebranded as The Garden Diner and Cafe, in 2015.
“I have always seen this need for more plant-based and gluten-free options in our city, especially for people that have food allergies,” he said. “It’s really hard to go to a restaurant and feel confident in what you’re being served, especial-
cakes, plant-based “chicken” and waffles and smoothies, as well as salads, rice dishes and sandwiches.
Rise will bake all of the restaurant’s breads and will use items like gluten-free flour, dairy-free butter and more to ensure the ingredients remain uncontaminated.
Squibb Coffee and Wine Bar, which produces coffee, tea and espresso for Rise, will also provide beverages for Fika using plantbased milk in the drinks.
In the market and deli section of the restaurant, Fika will sell drinks like juice and kombucha, salads and pre-packaged plant-based and gluten-free baked goods and snacks, including some from local companies like Rise.
Van Liere envisions the space as an easy spot for people to grab plant-based products for home cooking or snacking.
Caledonia-based real estate developer First Companies Inc., which owns the Lofts on Grove, will lead construction on the restaurant
space. Two bathrooms and an office will complete the buildout.
The Van Lieres started Rise in their apartment nearly 10 years ago, with customers placing orders to pick up from their home.
“It was a crazy journey,” Van Liere said.
The bakery briefly moved into Bartertown Diner’s kitchen and spent some time in commercial kitchen spaces before opening a brick-and-mortar bakery in 2018.
As Rise has grown, keeping up with the bakery’s plated breakfast
then, it has just really grown and taken up space here.”
Once Fika opens, Rise will phase out its brunch menu and will no longer offer plated foods.
“That’s one of the main reasons why we’re so excited to open Fika, so we can let Rise really be Rise and showcase our bakery, and let our bakers be bakers,” Van Liere said. “It’s been a progression, and it feels very natural to move on to this next step where we can really separate out the business and really let each part of the business grow and func-
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The owners of Rise bakery plan new restaurant Fika, which calls for building out an approximately 600-square-foot kitchen, a 500-square-foot market space and a half-circle bar. COURTESY PHOTO
Becca and Nick Van Liere founded Rise in 2015. | COURTESY PHOTO
Fluresh closes Adrian facility to focus on Grand Rapids
By Dustin Walsh pensary,
A Grand Rapids-based operator is closing a large-scale marijuana cultivation site in southeast Michigan, unable to survive Michigan’s record-low cannabis prices.
Fluresh LLC closed its $46 million, 105,000-square-foot grow facility in Adrian and laid off 46 employees at the end of November.
The company, which does business as Tend.Harvest.Cultivate and also has cultivation and retail operations at the 200,000-squarefoot former Benteler Automotive plant at 1213 Phillips Ave. SW in Grand Rapids, couldn’t make the economics of the Adrian operation work as the average price for an ounce of marijuana flower plummeted 21% year-to-date to just $73.99.
“It cost me more to grow in Adrian than I could sell on the market,” CEO Brandon Kanitz told Crain’s. “The site is not profitable.”
Kanitz said his company needed $300 per pound to turn a profit at its Adrian cultivation site, but faced stiff competition from outdoor grows who were selling product as cheaply as $80 per pound.
The 27-acre Adrian site used 55,000-square-feet of canopy to grow, which utilizes natural light and is viewed as slightly higher quality marijuana than outdoor grows, but slightly lower in quality than light-controlled indoor operations.
Kanitz also said the facility’s dehumidification system never worked properly, straining operations.
The end result was about a $500,000 monthly loss on operations.
“We went to Adrian for reasons,” Kanitz said. “My grandpa grew up in Lenawee County and played football at Adrian College. It’s a community that doesn’t see a lot of development. This wasn’t an easy decision. It’s really disappointing to have to let go of my teammates.”
The terminated employees will receive pay and benefits through January, Kanitz said.
Fluresh is just another victim to the state’s low prices, which are a consequence of market oversupply.
There were 3.56 million active plants being grown in Michigan in October, down from 3.77 million in September, but still up 73% yearover-year. The decline in active plants in October is likely due to the influx of product from “Croptober,” where operators harvest their seasonal outdoor grows for the market.
Illicit market marijuana infiltrating the regulated market also plays a role in decreasing prices.
Kanitz said much of the industry is in financial trouble as it weathers the market realities.
“(The market) is unhealthy,” he said. “We’re all sick. But closing Adrian is going to allow us to get better. If we didn’t do this, (Adrian) would take the whole company down. We did this to save the business.”
Fluresh will maintain its Grand Rapids cultivation facility and dis-
which operates more efficiently than Adrian, Kanitz said.
The Grand Rapids site, an indoor grow, produces 100 grams of marijuana at an average of 24% THC per square foot of grow space, compared to just 50 grams at 18% THC per square foot in Adrian, Kanitz said.
“We feel we can make money in GR at these prices,” he said. “But the only way this industry becomes healthy is if supply comes offline.”
Fluresh produced about 4% of the state’s total marijuana output with Adrian contributing about 20,000 pounds of product and
Grand Rapids’ output of 30,000 pounds annually, Kanitz said.
Removing the Adrian site’s supply could move marijuana prices up in the coming months.
Kanitz hopes others in the industry follow suit and throw in the towel by removing unprofitable operations to become smaller companies.
Fluresh projects roughly $40 million in annual revenue without Adrian, but cash-flow positive, compared to $51 million with the site operational.
Dustin Walsh is a reporter for Crain’s Detroit Business.
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Fluresh’s dispensary in Grand Rapids. | cOUrTeSY PHOTO
Muskegon zoning changes aim for 1,500 housing units
By Rachel Watson
Muskegon has approved six changes to its zoning code that are designed to give property owners and developers more leeway to address a nearly 3,000-unit housing shortage citywide.
The Muskegon City Commission approved six zoning ordinance amendments that the city’s planning and economic development staff proposed earlier this year and workshopped with the public over the past six months. The Nov. 26 vote was to formalize the city commission’s earlier approval of the zoning changes.
The changes would allow duplexes, triplexes and accessory dwelling units in all single-family zone districts under certain conditions. The adjustments also would reduce minimum lot sizes and
parking minimums in residential areas, and amend design standards to make it easier to add on to exist-
ing homes.
Under the new rules, residential lots would be considered buildable
as long as they are at least 30 feet wide and 3,000 square feet in size, and each housing unit would only need parking for one vehicle rather than two.
The zoning amendments were developed in response to a 2023 housing study that projected the city will need an additional 2,924 for-sale and rental units by 2027 to keep up with demand.
“What we’re undertaking with these zoning changes is a continuation of efforts that we’ve been doing for the past several years, in terms of trying to create more housing variety, housing options (and) greater flexibility,” Muskegon Mayor Ken Johnson said.
Mike Franzak, Muskegon’s planning director, said the housing study prompted city leaders to inventory available land to see if the gap could be closed under current zoning conditions.
“We started looking at the vacant lots, and we noticed that we could not come close to that (number) just building single-family houses,” he said. “It was not possible to do that, so we had to look at, citywide, how do we create more buildable land, and how do we account for building all of these units? That’s really what led the charge.”
Franzak said he estimates the zoning changes could spur the creation of roughly 1,500 housing units in residential areas — 1,100 from splitting vacant city-owned lots and 400 from allowing landowners to build multi-unit structures in single-family districts.
Muskegon’s decision to propose zoning changes that would apply to all neighborhoods came after the city first began tweaking its zoning ordinance to support more housing nearly a decade ago, Franzak said.
cant lots were. It was a pragmatic solution. But it wasn’t well marketed,” he said. “People didn’t understand what we were trying to do. Because of that, they came out with deep concerns that we hadn’t done a good job of addressing.”
Johnson said they learned from that mistake, and taking a more “holistic, citywide approach” this time around removed many of those concerns.
“Now, no particular neighborhood feels like they’re being either targeted or left out, and then also when you create a uniform zoning approach across the city, it’s less confusing,” he said.
During public meetings on the zoning changes, the city adjusted its proposals as it heard feedback from residents, ultimately deciding to reduce, rather than eliminate, parking minimums.
Officials also learned to better communicate the overall goal of the project, which was not to require more density, but to simplify overly complex regulations to allow for development and housing choice.
“It’s really to help meet the housing needs, the goal of 3,000 units, and it’s to also give power back to the people and let them dictate how they use their property,” Franzak said. “If they want to have extra income or create generational wealth, people are going to have that ability to do that now.”
The zoning code changes are merely one part of a multi-faceted strategy Muskegon is using to address its housing shortage, city leaders said. These include tools that other municipalities are tapping, like payment in lieu of taxes (PILOT) and housing tax increment financing incentives.
“Wealth management and estate planning are complex and critical services for families looking to build a prosperous future. Legacy Trust has been delivering the best personalized service for its clients in this area for the past 20 years.
Simply put, they provide a Legacy of Trust for its clients and the community.”
Michelle Van Dyke President & CEO Heart of West Michigan United Way
In 2015, the city adopted formbased code zoning for downtown mixed-use and urban residential buildings, which is an approach to zoning that focuses on regulating a building’s form more than its use, allowing for more housing. In 2019, Muskegon expanded that zoning classification to the entire Nelson neighborhood that encompasses downtown.
But in 2020-21, city officials were unsuccessful in expanding formbased code to three additional neighborhoods after residents began pushing back, said Franzak, who’s worked for the city since 2007.
“We decided to listen to some of the concerns that people had, saying, ‘Why did you only target a few neighborhoods? Why isn’t this everywhere?’ And (we) went back to the drawing board and came up with this new idea to bring it citywide and to scale back some of that density just a little bit,” Franzak said.
Jake Eckholm, Muskegon’s director of development services, said the proposal to change zoning one neighborhood at a time opened the city up to complaints that less affluent neighborhoods were being targeted for more density while other neighborhoods were exempted.
“The reason that we picked the neighborhoods we picked is because that’s where most of the va-
Eckholm said the zoning code changes also may give a boost to its previously reported citywide brownfield plan amendment and housing infill project that’s adding hundreds of below market-rate housing units on city-owned lots using tax capture financing.
That’s because the city and its development partners now have the option to subdivide some of the brownfield lots, or build multi-unit housing rather than just single-family residences, without having to go through time-consuming additional layers of rezoning approvals.
“It’s a crucial strategy in our overall infill housing endeavor,” Eckholm said. “It’s allowing us to really provide … developers more options.”
Eckholm and Franzak said they won’t necessarily start “preemptively” subdividing lots. They plan to let it be an as-requested, developer-led process.
They both noted that the city is seeing an increase in people inquiring about building duplexes and ADUs, which they see as a promising sign.
To foster those types of projects from a financing standpoint, Eckholm said the city recently adjusted its Neighborhood Enterprise Zone map. NEZs provide tax abatement opportunities to encourage development and rehabilitation of real estate in distressed communities.
Triplexes built on Dowd Street in Muskegon after one of its neighborhoods was rezoned to form-based code a few years ago. | COURTESY OF CITY OF mUSKEGON
East Hills’ Cherry Hill Market sells to new owners
By Abby Poirier
Two and a half decades after purchasing Cherry Hill Market, Eric Marcellus is passing the torch and selling the grocery store to new owners.
Located at 721 Cherry St. SE in Grand Rapids’ East Hills neighborhood, Cherry Hill Market sells alcohol, groceries and other convenience items. Marcellus sold the building and business in September for $475,000, according to property records, which listed an entity registered to Amish Chhabra, owner of the former Lake Michigan Sports Bar and Venue Bar, as the buyer.
After operating the neighborhood store for nearly 25 years, Marcellus is ready to move on to a new chapter as he moves out of Grand Rapids.
He purchased the two-story building in 2000 for $80,950 according to property records, after he returned to Grand Rapids from serving as a Navy SEAL.
At the time, he was “in search of something unique and different” to do with his life.
“I was directionless. I didn’t really know what I wanted to do,” he said.
He purchased the 4,500-squarefoot building, which was built in
the 1880s and included four 1,000-square-foot rental apartments, with the intention of selling the ground floor store and leasing the commercial space.
“However, in the loan process, I decided that I would try my hand at retail,” he said.
Despite having no prior experience in store operations or customer service, he continued to operate the store, leaning on his mother’s business operations experience to shorten the learning curve.
“I can’t think of a more rewarding job, and that’s why I was there for 24 years,” he said.
When Marcellus purchased the building, it was in poor condition, with a leaking roof, backed up plumbing and an electrical system in need of repair. Over the next several years, he replaced the entirety of the building’s plumbing and electrical system, replaced the roof and added an ice cream parlor in the space adjacent to the storefront.
The ice cream parlor, which operated for around 10 years, closed in 2021 but remains fully operational.
Marcellus said he started looking for a new owner for the business around two years ago, following a house fire that forced him to take a backseat role in the busi-
ness, and his concerns about break-ins in the area, including at his house and Cherry Hill Market.
Still, Marcellus remains confident that the new owners will do right by the neighborhood market.
Chhabra has retained all six of Cherry Hill Market’s staff, including the store manager.
“They’re all local people, and they’re all also very invested in the neighborhood,” he said of the
market’s employees. “They know everybody.”
So far, Chhabra has invested in new security measures at the store, including cameras and gates to cover doors and windows at night. The new owner has plans to invest in building a new beer vault.
“I don’t see anything but positives,” Marcellus said of the transition.
While Marcellus is eager to
move into his next chapter, he said he enjoyed being a part of the community as the owner of the neighborhood market.
“I love the fact that everybody that came in the store were regulars,” he said. “They came in at least once a day, sometimes two or three times a day, and you got a chance to hear their story. You got a chance to catch up with them, and I honestly really liked that.”
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Cherry Hill Market is located at 721 Cherry St. SE in Grand Rapids’ East Hills neighborhood. | cOUrTeSY PHOTO
Mary Free Bed extends reach with pact to manage rehab unit
By Mark Sanchez
Mary Free Bed Rehabilitation Hospital will take over management of a rehab program in West Virginia at the beginning of next year, extending the Grand Rapids-based health care facility’s operational reach further outside of Michigan.
The Grand Rapids-based Mary Free Bed on Nov. 27 announced a joint operating agreement with Charleston, West Virginia-based Vandalia Health to manage the day-to-day operations of the Charleston Area Medical Center’s 24-bed inpatient rehab unit. The agreement starts Jan. 1, 2025.
Under the agreement, Mary Free Bed and Vandalia Health plan to build a new 50-bed rehabilitation hospital on the Charleston Area Medical Center General Hospital campus in downtown Charleston.
“In health care, alignment of
mission and values is essential for successful partnerships,” Bruce Brasser, chief operating officer at Mary Free Bed, said in a statement. “This collaboration represents a shared vision of expanding access to world-class rehabilitation care for those who need it most.”
Based in Charleston, Vandalia Health has operations in West Virginia, Maryland, Ohio, Pennsylvania and Virginia at 17 hospitals with 1,530 beds, 13,000 employees, and more than 190 locations.
Mary Free Bed for more than a decade has been building a broad care network by managing operations of rehab units for other health systems.
Most recently, Mary Free Bed in February signed a joint operating agreement to manage day-to-day rehab operations for Valley Health’s Winchester Medical Center and its inpatient rehabilitation unit in Winchester, Virginia.
Cornerstone Alliance taps Muskegon’s Schneider as CEO
By Kate Carlson
Marla Schneider is leaving her role as the president and CEO of Greater Muskegon Economic Development to head up Cornerstone Alliance, the economic development organization for Berrien County.
Schneider’s last day at Muskegon County’s economic development organization will be Jan. 3. She has led Greater Muskegon Economic Development (GMED) since June 2022, following the organization’s restructuring and rebranding.
collaborating with the talented team, investors and community partners to build on the organization’s incredible momentum,” Schneider said in a statement.
As president and CEO of Benton Harbor-based Cornerstone Alliance, Schneider will lead the organization as it navigates several transformative projects, initiatives focused on business retention and expansion, physical development and placemaking.
“I am honored to join Cornerstone Alliance and look forward to
“Berrien County is a vibrant region with immense potential, and I am excited to contribute to its continued growth and success.” Cornerstone Alliance’s interim president, Christina Frank, will stay at the economic development organization in a senior leadership role as she pursues a law degree.
Schneider led GMED’s downtown redevelopment efforts in Muskegon Heights and a handful of local business expansion projects. According to GMED’s data, the economic development organization assisted with the creation of over 560 new jobs and $915.8 million in new investments across Muskegon County during Schneider’s tenure.
Vandalia Health’s Charleston Area Medical Center. COURTESY PHOTO
Schneider
Indoor grower boosts production of greens and herbs
By Abby Poirier
Fresh greens and herbs producer Edible Garden AG Inc. is expanding its local production capabilities by one-third with the completion of a new packing line at its Grand Rapids facility.
The new packing line, located at the company’s facility at 2960 Madison Ave. SE, will increase its output by one-third, enabling Belvidere, New Jersey-based Edible Garden to take on more business.
Edible Garden produces living herbs and hydroponic greens that it distributes nationally in supermarkets like Kroger, Target, Walmart and Meijer. The company’s living herbs are sold with their roots attached, enabling purchasers to plant and grow them if they choose and giving the products a longer shelf life.
The company produces 10 different types of living and cut herbs, as well as organic greens like romaine lettuce, salad kits and organic whey protein.
Jim Kras, president and CEO of Edible Garden, said the company’s relationship with Meijer is a key factor in its expansion in West Michigan. The company’s “Heartland” facility primarily grows herbs and greens for Meijer’s approximately 240 stores in the Midwest.
“Meijer is a fantastic partner,” he said. “They’ve changed the trajectory of the business. We’re all sort of interlocked.”
With the addition of a new highspeed packing line, Kras anticipates the company taking on more business, through Meijer and the 15 other supermarket chains that sell Edible Garden’s products.
The Heartland facility is one of Edible Garden’s two greenhouses; another facility is located in Belvidere, N.J.
Edible Garden purchased the greenhouse in 2022 from Greenleaf Growers Inc., a Grand Rapids-based wholesale commercial grower that produced spring crops, fall mums and seasonal poinsettias.
After fulfilling Greenleaf Growers’ existing contracts for the first year, Edible Garden built out the facility with its own infrastructure and officially began growing its own product there in 2023.
The Grand Rapids greenhouse spans 5 acres, 3 acres of which are used to grow herbs, while three high-speed packing lines prepare fresh herbs and greens for store shelves.
“The most recent expansion has allowed us to … really handle a lot of business,” Kras said.
Through the first nine months in
2024, Edible Garden (Nasdaq: EDBL) generated just shy of $10 million in revenue, on par with the same period in the previous year. However, the company improved gross profit by 324% compared to the same period as it phased out legacy business lines and invested in producing higher margin products.
The company, which went public in May 2022, narrowed its net loss to $2.1 million in the third quarter.
Edible Garden’s cut-herb sales rose 55% year-over-year for the same time period. Kras attributes the increased sales to more families cooking at home because of inflation’s effects on restaurant pricing.
“Herbs really transform your meals, and people have really gravitated towards that,” Kras said. “It’s been really sort of a perfect storm to our benefit.”
In September, Edible Garden also raised $5.65 million in a stock offering that it planned to use to fund further growth initiatives and pay down $3.2 million in shortterm debt.
An NPR report earlier this year citing data from the U.S. Bureau of Labor Statistics noted that the cost of groceries has grown 19% since mid-2020, while restaurant prices
have jumped nearly 24%, pushing more diners to eat at home to save money. However, the effects of inflation may be mitigating, as a National Restaurant Association report last month noted that menu prices rose 3.8% over the last 12 months, the slowest growth rate since April 2021.
As the holidays near, Kras expects Edible Garden to generate strong sales as families gear up for home cooking.
“The Super Bowl of herbs starts now,” he said, adding that their major retail distributor, Meijer is “the
go-to destination for all things holiday in the Midwest.”
Looking forward, Kras anticipates more growth in the area with continued expansions at the Grand Rapids facility, as well as the development of new products in partnership with Meijer.
“We’re going to continue to invest in West Michigan,” he said. “We’re not done yet. We’ve got great partners (in) Meijer and Walmart and they keep giving us more and more business. We’re fully committed to this part of Michigan.”
Edible Garden boosted packing capacity at its Grand Rapids operations. | cOUrTeSY PHOTO
Developers propose 77 condos on wooded acreage
By Rachel Watson
A pair of developers will go before the city this week seeking to build 77 condominiums and two single-family lots on a wooded parcel bordering a northeast Grand Rapids park.
Brandon Visser and Nathan Coffman, doing business as Brave Development LLC, will go before the Grand Rapids City Planning Commission Dec. 12 seeking site plan and special land use approval to build 77 two- and three-bedroom “townhome-style” condominiums and two single-family homes at 1644 Ball Ave. NE.
The duo acquired the property for just less than $900,000 in August 2023, according to city property records.
The project, which they started working on about a year ago, is referred to as Hidden Bluff Condominiums on documents filed with the city.
to cater towards that need in the area — something that is new housing, but still within an affordable price tag,” Visser said.
Based on current costs, the developer expects the homes to be marketed for sale in the $300,000 to $375,000 range.
Visser added that in meeting with nearby residents through the city’s Development with Us neighborhood engagement program, the developers ultimately decided to cut 17 units out of their original plan based on neighbors’ density concerns.
The property contains an existing single-family home off Ball Avenue that currently has a tenant, and that home will be preserved with the goal of parceling it off from the townhomes eventually, pending city approvals, Visser said.
The nearly 10-acre wooded property abuts Ball Perkins Park to the south and east, and is just south of Berkley Hills Church. It is in the North East Citizens Action neighborhood.
Visser is a third-generation developer and founder of Plainfield Township-based Visser Building Group, which will be the builder for this project. Coffman is owner of Plainfield Township-based Coffman Property Management, which manages apartments.
Plans also call for adding two more single-family lots south of the existing home, facing Ball Avenue, to preserve the “residential feel” of the existing streetscape. Visser said these likely would be lots marketed for sale to another builder or prospective homeowner who would hire their own builder.
The pair have worked together to develop a few different multifamily projects to date, but this would be their first homeownership project as a duo, Visser said.
Visser said he is excited about the location’s proximity to a public park, which will offer additional greenspace for residents beyond what is provided in the site plan. He said it’s also ideal to be able to put homeownership units into an area that largely consists of single-family housing.
“This is a property that obviously has some acreage, and it’s been utilized for one single-family home for decades. Grand Rapids is always looking for other opportunities to put in some types of housing that fits that … ‘missing middle,’ so we structured the plans and designs for this project
Visser and Coffman did an extensive tree survey that determined the center of the property was largely dominated by invasive or non-native species, while the perimeter contains more mature and/or native trees that are prioritized by the city of Grand Rapids for preservation.
They structured their site plan accordingly, with the goal of preserving as many high-priority trees as possible.
“They will kind of keep the look and feel around the outside of the property, and then within the property, we have a landscaping plan with pretty extensive tree plantings,” Visser said.
The neighborhood would have a public road extending off Ball Avenue into the development, with sidewalks throughout and open lawn space.
Plans call for a playground and detention pond on the far east side of the parcel, bordering Ball Perkins Park, as well as a sidewalk on the south side of the property that would connect to the city park’s trails.
Hidden Bluff Condominiums calls for 77 two- and three-bedroom condos and two single-family houses. | CREDIT: COURTESY BRAVE DEVELOPmENT LLC
ICCF takes over as developer for affordable housing project
By Rachel Watson
An affordable housing nonprofit has taken over plans for a mixeduse apartment project in a southeast Grand Rapids business district after acquiring the property from the former developer.
Grand Rapids-based ICCF Community Homes acquired the two-story building at 2017 Eastern Ave. SE near the corner of Burton Street from Timothy Yalda of Apposite Properties LLC and will move ahead with plans for 15 units of affordable housing in the building. The $600,000 property sale closed Nov. 12, according to city property records.
The approximately 17,000-squarefoot building dates back to 1950 in the Seymour Square business district of the Garfield Park neighborhood. It is mostly vacant, with the exception of a 2,500-square-foot commercial space that the U.S. Postal Service leases on the ground floor. The post office will remain open during and after the project.
“We’re excited about this, because we obviously are invested in that community,” Ryan VerWys, president and CEO of ICCF Community Homes, told Crain’s Grand
Rapids Business. “We’ve been in the 49507 (ZIP code) for 50 years now, and to continue to get to invest there, ensuring that it’s a place where everyone has a place they can afford, we are really grateful for the opportunity to be brought in for that.”
VerWys said he is excited that an “eyesore” will be turned into a “beautiful and useful” affordable
that’s affordable and attainable is key. It’s a foundation to strong communities, and it’s something we’re passionate about.”
VerWys said the current plan is to reserve three of the units for households making up to 120% of area median income, five units for those making 80% or less of AMI, and seven units for those making 60% or less of AMI.
“We recognize Seymour Square has been an important neighborhood in our community, and we are thrilled to join in making it a place where people can thrive.”
Ryan VerWys, president and CEO of ICCF Community Homes
housing development.
“We recognize Seymour Square has been an important neighborhood in our community, and we are thrilled to join in making it a place where people can thrive,” he said. “We believe that housing
Yalda, with Emily Petz of Zero Plus LLC and Grand Rapids-based Pinnacle Construction Group, began planning a 16-unit affordable housing project in the building in 2022 that was designed for the 45% to 100% AMI bracket and was to include “live/work units.”
However, Yalda recently decided not to move ahead with the project. He did not return a request for comment for this story.
Pinnacle remains the architect and general contractor on the project, which will have all-electric utilities with heat pumps, an energy recovery system and exterior insulation.
“We’re very happy that ICCF decided to take it over, because
there’s a lot of work that’s been put into transforming that building, that parcel, and having a good steward is always better than letting it go back to the market and sit vacant,” said James Lewis, director of real estate development for Pinnacle.
Jan van der Woerd, vice president of real estate development for ICCF, said the anticipated project cost is about $4.2 million now, up from Yalda’s estimate of $3.7 million a year ago.
Working with Yalda, Zero Plus and Pinnacle had already secured a variety of public funding support for the project, including a more than $1 million Revitalization and Placemaking (RAP 2.0) grant from the Michigan Economic Development Corp.’s allocation to the city of Grand Rapids. That grant will transfer over to ICCF now.
The Michigan State Housing De-
velopment Authority awarded ICCF a $1.4 million MI Neighborhood grant in support of the project this fall. ICCF also is seeking Section 8 vouchers from the Grand Rapids Housing Commission that would subsidize rents for seven of the units, if approved.
ICCF also is requesting has a transfer of a 12-year Obsolete Property Rehabilitation Act (OPRA) tax exemption certificate and a $10,000 facade improvement grant that the Southtown Corridor Improvement Authority approved for the project in May 2022.
The project team also is seeking to retain a $10,000 sustainability-related grant the previous developer secured from the Grand Rapids-based GreenHome Institute.
ICCF expects to break ground on the development next spring.
ICCF Community Homes has taken over a project calling for 15 affordable housing units in the Seymour Square business district. | PINNAcLe cONSTr UcTION GrOUP
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Corewell Health COO leaving for system in Washington state
By Mark Sanchez
Corewell Health Chief Operating Officer Dr. Darryl Elmouchi plans to depart for the same role at a larger health system based in Washington State.
Elmouchi starts Jan. 1 as COO at Providence Health & Services, a nonprofit health system based in Renton, south of Seattle, that operates 51 hospitals and has 1,100 physicians in seven states. As COO, he’ll oversee operations, care delivery and performance improvement initiatives at Providence.
Elmouchi has served in the newly created COO role at Corewell Health since April 2023. He previously was president of Corewell Health for three years prior to the February 2022 merger between the former Spectrum
“We
Elmouchi brings to Providence “extensive clinical and operational experience to his new role,” according to the announcement.
“Following an extensive nationwide search, it was clear that Dr. Elmouchi’s unique background as a physician and proven track record of successfully leading operational transformation, improving patient outcomes and fostering a culture of excellence and inclusivity, is a perfect fit for our organization,”
Wexler said. “He is a visionary who understands the importance of blending compassionate care with innovation and operational performance.”
In the announcement, Elmouchi called Providence’s “commitment to innovation, excellence, affordable health care and its demonstrated Mission of service were incredibly compelling to me.”
appreciate everything Darryl has given to Corewell Health and our patients.
He
has led with passion, purpose and compassion and we wish him the best of luck in his new role.”
Corewell Health
Health and Beaumont Health and served as Spectrum’s chief medical officer and president of the medical group from 2017 to 2020.
“We appreciate everything Darryl has given to Corewell Health and our patients. He has led with passion, purpose and compassion and we wish him the best of luck in his new role,” Corewell Health said in a statement to Crain’s Grand Rapids Business.
Corewell Health did not immediately name a successor to Elmouchi.
Providence’s present COO, Erik Wexler, who becomes president and CEO Jan. 1, announced Elmouchi’s appointment Nov. 19.
“I look forward to helping drive improvements that transform health care. It’s truly an exciting time to join this dynamic organization,” he said.
Corewell Health operates 21 hospitals in Michigan and a large medical group practice, more than 300 outpatient locations and the 1.3-million-member health plan Priority Health.
Corewell Health recorded $211.8 million in year-to-date operating income on $12.26 billion in total operating revenue for a 1.7% margin. That compares to $152.1 million in operating income through the first nine months of 2023 on $11.18 billion in total operating revenue for a 1.4% margin.
The health system recorded $717 million in investment income that was partly offset by $21.8 million in non-operating expenses to push net income to $895.8 million for a 6.9% total margin through the first nine months of the year.
Corewell Health COO Darryl Elmouchi is departing for Providence Health in Renton, Wash. | cOUrTeSY PHOTO
State needs to strengthen economy, competitiveness
Business Leaders
For Michigan’s 2024 Top 10 Benchmarking Report places Michigan at 27th nationally — a reminder that we have progress to make. Lawmakers have a critical opportunity to improve the lives of our residents and elevate our ranking by focusing on bipartisan solutions to improve the quality of our infrastructure, education outcomes, talent availability and economic growth. However, they must avoid enacting legislation that adds complexity and costs to doing business in Michigan.
Blake W. Krueger is retired executive chairman of Wolverine World Wide Inc. Mike Jandernoa is founder and chairman of 42 North Partners. Both Krueger and Jandernoa are executive committee members on the Business Leaders For Michigan board of directors.
To become a Top 10 state for jobs, talent and a thriving economy, we must accelerate efforts to:
w Create a competitive business climate
w Improve K-12 education
w Attract and retain top talent
w Foster an innovation-driven economy
Unfortunately, a number of current proposals in Lansing risk undermining this progress. If enacted, these bills would increase costs for businesses and consumers, jeopardizing Michigan’s standing and reversing the hard-won gains of the last decade. Let’s not forget where we were in 2009, when Michigan ranked near the bottom — 49th or 50th — on most measures. Protecting our progress requires prioritiz-
ing stability, competitiveness and accountability.
The message from the last election was clear: Voters are frustrated by rising costs of everyday essentials. To address these concerns and sustain economic momentum, policymakers must focus on reducing costs and complexity for businesses of all sizes — and the consumers they serve.
A pressing priority before the legislative session ends is fixing the earned sick time and tipped wage laws, set to take effect in February 2025. As it stands, the laws are unworkable for small businesses and would likely reduce employee benefits, as well as decrease jobs, especially in restaurants. More than 70 business organizations across Michigan agree that critical changes are needed to make the law fair and functional for all stakeholders. With global disruptions and uncertainty, Michigan’s progress remains fragile. By doubling down on bipartisan policies that expand prosperity and opportunity for Michiganders and enhance our economic fundamentals, we can ensure our state remains an attractive place to live, work and grow. Together, let’s propel Michigan closer to the Top 10 — and keep it there. COMMENTARY
‘All-in’ partnerships will power Michigan’s prosperity
In the early 2000s, Michigan was at a crossroads as changing industries and education gaps created a talent shortage in our state. While significant progress has been made over a couple decades by a cross section of businesses, universities and government leaders, there is still work to be done. As college students leave the state and skilled trades diminish, we need to double down on efforts to attract, develop and retain talent. With prioritization and commitment, we can ensure a robust and innovative workforce for Michigan’s future. Consumers Energy provides businesses with the reliable, clean and affordable energy they need to be successful. Beyond energy, ensuring Michigan’s long-term success requires a relentless focus on job and talent attraction as well as workforce development — a focus that empowers our communities to cultivate a brighter future. As the state’s largest utility company, we play an important role in building and advancing public and private-sector partnerships that bring the state’s best educa-
tion, training and development assets forward. We do this as our commitment to grow our state through economic and workforce development.
Economic development is a continuous focus for Consumers Energy. We need advanced manufacturing in the U.S., and more importantly, right here in Michigan. We work to attract businesses to our state, because we know that when they say “yes” to Michigan, they bring the jobs and investments to generationally transform our communities and the lives of Michiganders.
This year, Corning Inc., a global leader in materials science, announced plans to construct a new solar component manufacturing facility in Saginaw County. This project — the first of its kind in the Great Lakes State — is expected to generate a total investment of $900 million and create more than 1,100 direct jobs. Our commitment to onshoring critical clean energy supply chains and affordable energy are just a couple of the reasons that Corning chose Michigan over competing Midwest
and Northeast states. This is a win for Michigan.
As a state, we must take every opportunity to be a leading multi-industry manufacturing and research and development hub to attract and retain valuable talent. Aside from critical energy infrastructure, a highly trained workforce is essential in many fields, including advanced manufacturing, aerospace and defense, semiconductors and artificial intelligence.
Workforce development is another priority for Consumers Energy. We’re committed to making meaningful contributions to our workforce pipeline and engaging in partnerships to attract and retain top talent in Michigan.
Last year, we partnered with other energy providers, Grand Rapids Community College and the Michigan Energy Workforce Development Consortium to create a one-year Energy Trades Pathway Program. This program offers students the
flexibility to explore energy careers and develop skills for several skilled trades roles. Hands-on learning labs allow students to apply their knowledge and gain practical experience. Aligning trade school and college graduates with workforce expectations demonstrates our “all-in” workforce development focus.
Workforce development fuels economic growth. That’s why it is critical that business leaders and government officials double down and stack hands to create inclusive paths to well-paying, highly skilled, high-demand jobs in the technical sectors of tomorrow.
Consumers Energy is a proud member of Team Michigan. To ensure Michigan’s growth, it is essential that we embrace and support economic development with enthusiasm to attract job-creating opportunities and retain talent in our state. Michigan’s economy, workforce pipeline and long-term prosperity depends on it.
w A story in the Oct. 28 edition (“Tommy’s Boats liquidates assets”) incorrectly stated that Mark Wells had terminated his employment with Simplified Investments, the Borisch family office. Correction
Garrick Rochow is president and CEO of Consumers Energy.
Traverse City airport scaling up as business travel expands
By Elizabeth Schanz
Business-related air travel is driving record growth at Michigan’s third-busiest airport, which is in the early stages of planning a $120 million expansion to meet demand.
More Traverse City residents than ever are using the Cherry Capital Airport (TVC) for both business and leisure travel, spurring unprecedented growth for the airport located only about 2 miles from the city’s downtown.
As TVC grows from its current six gates to 10 or 11, the airport could position itself as a driving force in the community’s economy, business and tourism industry, airport officials say.
“(Airport growth creates) a lot more opportunities for folks to come and see this area, see this region, not only to visit, but there’s a big push for people that can come here and actually live here, move here and bring their businesses here,” said airport Chief Financial Officer Mark Bishop. “I see that continuing to happen as we go forward, especially as we continue to grow. So it’s exciting to be part of that opportunity to grow your community.”
TVC was the third-busiest Michigan airport last year following Gerald R. Ford International Airport (GRR) outside Grand Rapids with 3,794,915 passengers and the Detroit Metropolitan Airport (DTW), the largest airport in the state, with 31,453,486 passengers.
TVC serves about twice as many passengers as it did a decade ago. In 2014, the airport had about 350,000 total passengers while nine years later in 2023 TVC saw its best year yet with 700,699 passengers.
CEO Kevin Klein said the airport is already up 10% in passengers compared to last year.
The increase in travel is also driving up revenue for the airport. Last year, TVC brought in more than $10 million in revenue, a first for the airport. Klein said TVC forecasts 2024 revenue will be north of $11 million.
Klein said the airport’s growth can be attributed to a growing population of business executives and their needs.
“Where we’re really seeing (growth) is what we consider that business travel returning back immediately, post-COVID … but it’s based on the local person that has moved here recently,” Klein said.”
About a decade ago, 30% of the total traffic at the airport was business-related travel, which compares to about 40% today, Klein said. TVC tracks business-related travel with an online survey that travelers are encouraged to complete when they access free internet at the airport.
Because of the increased need for business travel, TVC kicked off two new non-stop daily services to Charlotte, N.C., and Houston, Texas, this year. These services connect Traverse City residents to Charlotte’s financial and technology
sectors and bolster northern Michigan’s ties to the oil and gas industry in Texas, Klein said.
“I came to the airport from the oil and gas industry about four years ago, and way back when I used to take a cadet direct flight from Houston and Traverse City. But there’s a lot of small oil and gas service companies and energy companies up this way (in northern Michigan),” Bishop said.
The convenience of TVC has made living in the area ideal both as a resident and a small business owner, Jack Rutkowski, founder and CEO of Flabocce, which makes a game similar to traditional bocce ball but uses flat pieces. TVC is unique from other regional airports because it offers “continual, fast connecting flights,” he said.
“The increase in routes and times will only make life easier, honestly,” Rutkowski told Crain’s via email. “Looking forward to (a) regular connection to NYC-metro, which will be great for my work, and the new Charlotte daily has me scouting out potential opportunities in that area which I never would have thought of before.”
T.J. Berden, a Traverse City native who was based in northern Michigan during the COVID-19 pandemic, brings a slightly different perspective on Up North business travel.
As the principal and producer of video production company Big Sur Pictures, he often traveled to Los Angeles and other cities out of state. He noted that flying from Traverse City to California can “cost as much as a transatlantic flight.”
“Prices and availability have definitely come down in the last seven years and that has been encouraging,” Berden said. “Getting to smaller regional airports is not as easy as you might think and requires some novel planning to cut costs.”
Since the pandemic, Berden has moved back to Los Angeles but travels back to the Midwest several times a year. Now, he primarily takes regional connections through Manistee County Blacker Airport and Chicago O’Hare International Airport, which have “been a real game changer and cost saver.”
“I hope that this new development (at TVC) would allow for direct regional connections to continue to bridge the resources and ingenuity of Traverse City to the rest of the country,” Berden said.
HEARTHSIDE
From Page 1
transform our business for the future,” Hearthside CEO Darlene Nicosia said in a statement on the restructuring plan. “With a sustainable capital structure and a significant infusion of new capital to fund our long-term plan, we will be well-equipped to enhance our leadership in the food manufacturing industry as we drive continued innovation and growth.”
To fund the company during the bankruptcy process, Hearthside has filed a motion seeking the approval of $300 million of debtor-in-possession financing, $150 million of which would come from existing lenders.
Additionally, TVC added new services to Fort Lauderdale, Fla., and New Haven, Conn., to serve leisure travel demand.
TVC’s increased flight offerings also could shape the future of Traverse City’s tourism economy, which in recent years has not been the primary driver of TVC’s growth, the Traverse City Ticker recently reported.
As a renowned summer tourist destination, Traverse City attracts 6 million visitors annually, though only about 3% of tourists come through the airport, Klein said.
However, TVC officials believe the airport is at the point where it “can convert some of these people that are driving into flying in.” Often, when an estimated travel time by car reaches eight to 10 hours, people start looking into flight options that would usually only take about an hour, Klein said.
Hearthside, which is owned by private equity firms Charlesbank Capital Partners and Partners Group Holding AG, expects to emerge from bankruptcy in the first quarter of 2025.
The company reported between 25,000 and 50,000 creditors with $1 billion and $10 billion assets and the same amount in liabilities, according to the company’s bankruptcy filing on Nov. 22.
The company’s largest creditor is U.S. Bank National Association with nearly $365.9 million in unsecured claims for notes due in June 2026. The next largest creditors are Chicago-based snack manufacturer Mondelez Global — whose brands include Nabisco, Oreo and Cadbury — with nearly $15.3 million in unsecured claims, followed by Kraft Heinz Food Co. ($3.64 million) and Pepsico ($3.47 million).
Alongside the restructuring announcement, Hearthside addressed its past labor issues that followed a
bombshell New York Times investigation last year that identified Heathside Foods for allegedly employing underage migrant workers under falsified documents.
As part of its Chapter 11 filing, Hearthside stated that it “vigorously disputes the bases for the allegations raised by the New York Times, but the effects of that article were immediate and severe: adverse media attention, customer scrutiny, and a series of investigations begun by different government bodies.
“For its part, the Company responded forcefully to review, assess, and further enhance its own labor policies and practices,” the company stated, noting that the allegations involve third-party staffing agencies “with whom Hearthside no longer has business relationships.”
The declaration also states that Hearthside has made “significant investments” in ensuring its employee base is fully compliant with applicable laws and regulations, “including by substantially reducing its use of third-party staffing agencies and ensuring that all employees are subject to appropriate identification, eligibility, and verification procedures.”
Hearthside has minimized its use of staffing agencies, now utilizing fewer than 10, compared to 48 agencies previously, and cut back on its use of temporary labor, which now makes up around 10% of the company’s workforce, as opposed to nearly 50% previously, company officials say.
According to the bankruptcy filing, Hearthside will continue to pay employee wages and benefits, maintain customer programs and honor its vendor obligations.
PEOPLE & COMPANIES ON THE MOVE
To place your listing, visit https://www.crainsgrandrapids.com/people-on-the-move/ or contact Debora Stein at (917) 226-5470 / dstein@crain.com
Fishbeck
Fishbeck is thrilled to announce the acquisition of MDA Engineering, a renowned mechanical and electrical engineering firm based in Maumee, Ohio. This milestone strengthens our capabilities and broadens our regional presence, enabling us to offer even more comprehensive solutions to our clients. MDA’s expertise in construction, energy retrofits, and industrial processes complements Fishbeck’s existing services. Their skilled team brings fresh insights, a commitment to sustainability, and technical excellence that aligns perfectly with our mission to deliver innovative, high-quality solutions. Together, we’re ready to tackle new challenges and drive success for clients across the Midwest and beyond. Welcome, MDA Engineering!
HEALTH CARE
Holland Hospital
Holland Hospital announces Abby Reeg as its new Executive Director of Fund Development. A seasoned fundraising professional, Reeg brings a proven track record of success in major gift fundraising and nonprofit leadership. Her experience includes fundraising for comprehensive campaigns, cultivating donor relationships, and securing critical funding. She will lead Holland Hospital’s fundraising efforts to further the hospital’s mission and strategic goals to ensure long-term sustainability.
INSURANCE
Kapnick Insurance
Kapnick Insurance celebrates the addition of Landon Pelham as Client Executive in commercial risk. He specializes in sectors like construction and manufacturing, offering tailored risk management solutions. Pelham is a Central Michigan alumnus and former collegiate wrestler. He aims to enhance Kapnick’s West Michigan presence. Don Engle, Kapnick’s president of commercial risk, commends Pelham’s innovative industry insights and is thrilled to have him on the team.
Cherry Capital Airport officials plan to nearly double gate capacity from six to 10 or 11 and add a terminal with a $120 million expansion. | cOUrTeSY OF cHerrY cAPITAL AIrPOrT
AIRPORT
opportunities for residents to travel directly from GRR, flights can bring tourists from outside of the state to Grand Rapids.
“Grand Rapids is kind of off the beaten path if you’re traveling by car, especially if it’s a cross-country trip. But, suddenly, when we introduce the airport, we can pull you in from one of 36 direct destinations, from one of over 20 major hub airports, and really just unlock the community because the airport is here,” Ries said.
Regional population growth is also helping GRR’s growth.
The primary counties GRR serves have experienced population growth in recent years. From 2010 to 2020, Kent, Ottawa and Allegan counties ranked among the fastest-growing counties in the state. Kent County and neighboring Ottawa County each grew more than 10% during the decade, gaining nearly 90,000 residents combined, Crain’s Grand Rapids Business previously reported.
Since GRR is commonly an origin or destination airport — meaning people are either starting or ending their journey in Grand Rapids rather than passing through — the increase in travel can be attributed to growth in the community, Ries said.
“I feel very strongly that airport traffic in Grand Rapids is up because of the diversity of our businesses and recovery from the pandemic,” Ries said.
GRR is the second-busiest airport in Michigan following Detroit Metropolitan Airport (DTW), which had 31,453,486 passengers in 2023. GRR pulls ahead of the
TRINITY
From Page 1
West had served as lead cardiologist at the medical practice and chief of cardiology for Trinity Health Muskegon Hospital until those duties were taken away in June.
Weeks earlier, West had reported concerns to administrators about a colleague who implanted a defibrillator in a patient that he believed was unnecessary, the lawsuit claims.
On July 11, fearing that Trinity Health might fire him and “bury” his concerns, he and “all of the other cardiologists in the Trinity Health cardiology practice in Muskegon submitted a signed letter outlining their concerns about (their colleague) to multiple members of (Trinity Health’s) respective administrative teams,” according to court documents.
West also reported his concerns to the U.S. Attorney’s Office for possible fraudulent claims to Medicare and Medicaid. The U.S. Attorney in August asked West for documents related to his claims, according to the lawsuit.
Trinity Health Medical Group administrators allowed West to return to work Aug. 5 and restored his hospital privileges under what the lawsuit terms a “‘last chance’-style agreement, saying that they allegedly found that his behavior
third-busiest airport in the state, Cherry Capital Airport (TVC), that tracked 700,699 passengers in 2023.
Doug Small, president and CEO of Experience Grand Rapids, noted that about 20-25% of people visiting Grand Rapids come via the airport. While a “vast majority” of visitors were coming from a three- to 500-mile radius, the Grand Rapids area has grown as a destination for people from Texas and California drawn to Michigan’s summertime weather, he said.
“As that reputation grows, so does our visitors’ curiosity, and that curiosity drives them to visit. Fortunately for us, in many cases, they return,” Small said. “The airport is such a vital part of our success and the reason we set records and they’re setting records right along with us setting records.”
GRR’s passenger traffic and airline activity also increased airport revenue. From 2022 to 2023, operating revenue increased 26%. Last year, GRR brought in $75.4 million in revenue compared to $59.9 million the year prior.
As a result of the airport’s growth, GRR is making significant investments in the facility under a more than $600 million capital expansion program called Elevate. Launched in 2018, Elevate encompasses six different projects to account for passenger growth, Ries said. As well, airport officials are also planning to add the airport’s first on-site hotel in the coming years.
Four primary elements constrained GRR’s ability to keep up with growth: limited gates, terminal curb front for pick up and drop off, baggage claim and parking, Ries said.
with staff was a problem.”
“They noted instances where they said (West) opposed new administrative practices and would not submit to those requirements despite being told. However, they refused (West) access to their report of investigation and refused further specifics in writing,” according to the lawsuit. “They told him only that if he violated any ‘further’ policies of the Muskegon Hospital or THMG, (they) would terminate him.”
West returned to work “despite feeling that this was a set-up for a retaliatory firing.”
As of Nov. 20, Trinity Health had yet to be served with the lawsuit documents and declined comment.
Citing agency policy, the U.S. Attorney’s Office declined comment on whether there was any investigation into the matter, according to a spokesperson.
Attorneys Sarah Howard and Shoran Reid Williams of Grand Rapids-based Pinsky Smith P.C. represent West.
The lawsuit “was not filed lightly,” Reid Williams said.
“What’s really at stake is Dr. West’s professional reputation in a community where he’s practiced for more than 35 years,” she said, noting that West went to work for Trinity Health Medical Group’s predecessor practice after his medical residency.
“To be put in this position to
“We understood the growth was happening. We also understood that our constraint was going to be capacity,” Ries said. “So Elevate was launched as an investment in the airport’s terminal core to increase the terminal’s capacity and start to address these shortcomings.”
Completed in June 2023, the newly built 90,000-square-foot Concourse A added eight new gates, bringing the total number of gates to 14. Concourse A was designed and decorated for travelers on a “journey” through Michigan alongside new dining options and amenities, Ries said.
“We’ve seen an increase in sales as a result of those options, and now we have both fast food, quickserve products like Freddy’s Hamburgers, but also sit down options like Uccello’s … and (the) cornerstone with Founders (Brewing Co.) in the facility, which works really nicely,” Ries said.
Concourse A was a $112 million project that was funded 60% with grants and 40% by airport reve-
have to defend his integrity, defend his professional reputation, this is quite serious for him,” Reid Williams said. “He was really left with no choice.”
The lawsuit names Trinity Health Muskegon and Trinity Health Medical Group as defendants. The cardiologist at the center of West’s allegations is not named as defendant in the case, although he was identified in court documents. Crain’s Grand Rapids Business opted not to identify him for this story.
Court papers describe how in June 2021 West informed superiors about a “problem” involving a colleague over procedures using implantable cardioverter-defibrillators (ICD), a device used to treat rapid heart rhythms or cardiac arrest. He submitted a formal report in May 2024, leading to “a variety of adverse actions in retaliation against Dr. West, including suspending him from employment and hospital privileges; later permanently terminating his practice lead position and his chief of cardiology position with the hospital; falsely reporting and/or insinuating his retirement to patients; and eventually firing him and ending his hospital privileges entirely.”
West’s allegations to administrators and report to the U.S. Attorney’s Office were based on the belief that the colleague and Trinity Health “were submitting claims for reimbursement which were based
pening within the CONRAC,” Ries said.
Since CONRAC is a revenue source for the airport it is not eligible for federal funding sources. The customer facility charge on car rental transactions is one of the funding sources for the project, Ries said.
nues, Ries said. Grant funds came from the Bipartisan Infrastructure Law passed by Congress in 2021 and the Airport Improvement Program through the Federal Aviation Administration (FAA).
Two other Elevate projects are in progress. CONRAC, Michigan’s first consolidated rental car facility, broke ground in 2023, and the Terminal Enhancement Project (TEP) that started construction this April.
CONRAC is a $156 million investment that will move rental car procedures out of the current parking lot, opening up 1,000 public parking spots. Once constructed, CONRAC will consist of a four-story customer service building where customers interact with car rental companies and receive keys and a five-story “ready return garage” that houses all rental car operations, including pick up and drop off, cleaning procedures and fueling.
“Today it’s a three-mile round trip for every car to get cleaned and prepped, and all that will be hap-
upon fraudulently created and/or altered medical records, which violates federal and state law.”
Issues about the colleague first surfaced in June 2021 when an echocardiography technician for the Muskegon cardiology practice approached West and another cardiologist with concerns about the colleague’s interpretation of echocardiographic studies on a patient considered for the implantation of cardioverter defibrillators. The technician was worried that the colleague in question was misreading the results of a patient’s echocardiograph.
When West confronted the colleague, the person claimed the interpretation “was accurate and proceeded with the ICD surgery,” according to court documents. After examining echocardiograph data from other patients, West and other cardiologists concluded their colleague was “engaging in a pattern of consistent” misreading of results. They also found that nuclear medicine technicians “witnessed (their colleague) requesting manipulations of data on nuclear studies.”
They took their concerns to Trinity Health Muskegon’s chief medical officer, who told them “to bring any proof of the allegations to his attention” so a peer review committee — that the colleague in question happened to chair — could review them, according to
The $135 million TEP is under construction and is expected to be completed in 2027. The project will combine all ticket counters in one area, streamline TSA’s checked baggage screening process, and consolidate and “right-size” airlines’ outbound bag process, Ries said. The Christman Co. is the construction manager and Dallas-based Corgan is the architect on TEP.
Other Elevate projects include adding a federal inspection station (FIS) to support nonstop international commercial passenger flights, the relocation of GRR’s air traffic control tower and additional parking capacity.
Currently, the federally owned and operated air traffic tower is located on top of the GRR terminal. This placement limits growth opportunities because projects cannot block the line of sight to the airfield, Ries said.
“We can’t build a parking garage where we’d like it. We can’t build a hotel where we’d like it. We’re limited on the aircraft hangar that can be built. So really leaning into our federal partners to relocate the air traffic control tower,” Ries said.
Once the tower is relocated, GRR can start construction on 4,000 new covered parking spots that will connect to the airport’s existing four-story structure. The project will cost $250 million to 300 million, airport officials say.
the lawsuit.
West and other cardiologists “then spent nearly two years attempting to investigate (the colleague’s) ICD procedures without official (Trinity Health Medical Group) or (Trinity Health Muskegon Hospital) assistance,” according to court documents.
“With at least three doctors from the practice reviewing each patient file from (their colleague’s) surgeries, a troubling pattern emerged of fraudulent implantation of ICDs on patients whose imaging did not support a recommendation to do so, exposing those patients to risky surgery and permanent placement of a sizeable device inside their chests,” West’s attorneys wrote, noting that he “lodged this allegation after an extensive study of those procedures by the other doctors in the practice.”
The lawsuit, which was filed Nov. 19 in U.S. District Court for the Western District of Michigan, alleges that in a May 24 weekly meeting for the practice, the colleague “openly admitted his intention to falsify medical records” … “to allow placement of a cardiac device.”
The lawsuit claims violations of the False Claims Act and retaliation for protected actions. West seeks damages for “lost earnings and benefits and incurred mental anguish, emotional distress, unfair reputational damage,” plus legal costs and attorney fees.
Multiple construction projects are ongoing at Grand Rapids’ airport. | ELIZABETH SCHANZ
From Page 3
recognized dispute before the Court.”
In the ruling, Hulsing lifted his previous preliminary injunction blocking enforcement of the ban.
The March 2024 ordinance, which states that short-term rentals are prohibited in all zoning districts except for the C-2 Resort Services district, is now in effect.
STADIUM
From Page 3
Stadium will be a monumental addition to Grand Rapids and will provide a world-class venue for fans, athletes and the community. Our joint venture leverages our deep connection to the city with AECOM Hunt’s unmatched experience in stadium and entertainment construction.”
CHICKENS
From Page 3
colony or enriched cages.
The conversion has come at great expense for the industry. According to the Michigan Allied Poultry Industries trade group, moving from caged to cage-free housing costs approximately $65 per hen, representing about $1 billion of investment to comply with the new law.
“It was really a tremendous undertaking,” said Nancy Barr, executive director of Michigan Allied Poultry Industries, noting that birds in cage-free housing systems have different nutritional and ventilation needs than those in cages. “You’re building new barns, you’re putting in completely new equipment. There was just a tremendous amount of work that went into doing the conversion in the right way.”
Herbruck’s Poultry Ranch, Inc., the state’s largest producer with approximately 10 million egg-laying hens, has entirely cage-free operations as of this year. The farm is a major producer for Eggland’s Best, which it distributes throughout the Midwest.
In an email to Crain’s Grand Rapids Business, the company stated that going cage-free “was an important goal that consumers have demanded from egg producers across the country.”
“(Egg producers) saw that this was the future, and they fully embraced it,” Barr said. “Growers in Michigan have understood for a long time that this is the way that the industry is going. This is the way they want to go, because of bird welfare.”
Between different feeding needs and greater labor costs — cage-free production is less conducive to automation, experts say — the cost of caring for birds in a cage-free environment is two to three times greater than the cost of caring for them in a caged environment, according to Barr.
The difference adds up to approximately $0.75 per dozen, a cost that’s likely to be passed on to
Hulsing wrote in his opinion that the plaintiffs will now need to take their requests for exemptions to the ban before the township’s zoning board of appeals, a seven-member group appointed by the township board of trustees.
Howard Fink, Park Township manager, said in an emailed statement that the decision “protects the family-friendly, residential character of our neighborhoods.”
“The court’s ruling clarifies this
AECOM Hunt is a division of the global infrastructure company, AECOM, based in Dallas, Texas. AECOM Hunt has managed the construction of 125 stadium projects across the U.S., including the Los Angeles Clippers’ Intuit Dome in California, the Indianapolis Colts’ Lucas Oil Stadium, and the Mercedes Benz Stadium in Georgia, home field for the Atlanta Falcons and Atlanta United FC.
“At AECOM Hunt, we are proud
wholesalers or consumers. The increase comes on top of the already inflated costs for eggs after Highly Pathogenic Avian Influenza (HIPA) decimated Michigan flocks earlier this year.
In May alone, Michigan lost 6.5 million of its 15 million egg-laying hens either because of the highly contagious virus or from euthanasia to prevent its spread.
The decrease in egg-laying hens dealt a blow to the state’s production. A September report from the U.S. Department of Agriculture’s National Agricultural Statistics Service showed a 33% decrease in Michigan’s egg production when compared with the previous year.
As well, the consumer price index for eggs in October was 30.4%
issue for the community going forward,” Fink said in the statement.
Jeremy Allen, president of Park Township Neighbors, told Crain’s the judge “probably made the right decision” by law, given the existence of the March 2024 ordinance. But he said it’s nevertheless a disappointment because denial by the zoning board seems all but inevitable.
“It’s almost 100% a given that the zoning board of appeals will
of our extensive experience in building iconic sports venues that inspire both athletes and fans,” Jason Kopp, chief operating officer and executive vice president of the central region for AECOM Hunt, said in a statement. “We are excited to join forces with Rockford Construction to deliver a state-of-theart soccer stadium for Grand Rapids that will not only serve as a premier venue for soccer but will also become a new landmark and
er Meijer told Crain’s Grand Rapids Business via email that it has been “working closely” with its suppliers to comply with the new regulations.
“All Michigan stores will begin transitioning to only cage-free eggs in mid-December, completing that transition by Dec. 31. Our goal is to always provide value for our customers, so while egg pricing fluctuates with the market, our cage-free eggs will remain competitively priced,” Meijer said in a statement.
For the average customer, Barr said, the cost difference in moving from caged to cage-free egg production is unlikely to be significant.
“If you’re used to purchasing cage-free eggs in the grocery store, probably not a lot is going to change, but some of those eggs that come in
“All Michigan stores will begin transitioning to only cage-free eggs in mid-December, completing that transition by Dec. 31. Our goal is to always provide value for our customers, so while egg pricing fluctuates with the market, our cage-free eggs will remain competitively priced.”
Meijer, Walker-based supercenter retailer
higher than the prior year, with an average price of $3.37 per dozen, according to the U.S. Bureau of Labor.
While consumers may have grown accustomed to higher egg prices over the past year, Barr is uncertain how they’ll respond to new price increases stemming from the shift to cage-free production.
“I don’t know how people are going to react. You sort of get used to paying a certain amount for something, and when it goes up, it’s noticeable,” she said. “But again, we’re still dealing with one of the cheapest forms of protein that you can buy. I hope that people start to recognize that it’s still a value. We want our hens to be raised in the best way that they can be raised, and that costs a little bit more.”
Walker-based supercenter retail-
say, ‘Hey, thank you for coming, … Our decision is they’re not legal. Thank you very much. No nonconforming status granted,’” he said. “It’s at that point that we now have jurisdiction to appeal that to the court.”
Park Township Neighbors’ attorney Kyle Konwinski told Crain’s the group is still determining its next steps, but “this is not the end of the road” for the case.
“It’s not done, but which route
resource for the community.”
Amway Corp. recently secured naming rights for the stadium after providing a $33 million lead donation to the construction of the venue.
Grand Action 2.0, which is leading the fundraising for the development, still has about $10 million in private contributions to complete funding the $175 stadium project.
Site work is expected to begin in spring 2025 and wrap up in 2027. A highly anticipated announcement
$2,000 a week on eggs alone.
He’s uncertain how much the shift to cage-free eggs will affect his business, as his major suppliers Sysco and Gordon Food Service have told him they’re unsure what effect the changes will have on pricing until after the change is implemented.
“My suppliers have not really given me anything close to an expectation on (cost) or anything,” Havemeier said. “Even a 1 cent per egg increase has an effect, but if it were 5 cents an egg, that would add $10,000 to $15,000 to our cost of goods sold for just eggs.
“This is pretty scary, and prices would definitely need to be adjusted on our items.”
In an October conversation with Crain’s Grand Rapids Business on the issue, Jeff Lobdell, president and founder of Restaurant Partners Management LLC and current chair of the National Restaurant Association, expressed concern about egg cost increases.
“I’m bracing for the worst,” he said. “The No. 1 thing my company purchases is eggs because I have 15 breakfast restaurants.”
we go, I’m not comfortable saying yet,” he said.
Konwinski said the group maintains the issue at stake was still whether short-term rentals were allowed under the 1974 ordinance, which they feel the court did have the authority to decide.
“This route … frankly, is just going to prolong a decision that needs to be clarified for all of the property owners, but we are faced with it now,” he said.
of the professional soccer team that will play at the stadium is expected to come this month.
In May, Grand Action 2.0 broke ground on the riverfront Acrisure Amphitheater, which it has been developing alongside the soccer stadium. Amphitheater construction is being led by a joint venture of Grand Rapids-based Pioneer Construction and Barton Malow, which is headquartered in Southfield with offices across the eastern United States.
has been built in over the past five years, meaning the shift shouldn’t shock the restaurant industry with a dramatic rise next year.
However, he said the MRLA will be watching the issue “very, very closely.”
“If we get into Q1 of next year and you see a double-digit increase in egg prices in Michigan alone, we’re going to be pretty aggressive in communicating to the legislature that there needs to be some sort of amendment here,” he said.
The cage-free requirement only affects shelled eggs and does not include egg products, such as powdered or liquid eggs. Winslow said restaurants will need to make choices about whether to transition to other egg products if shelled egg prices balloon as a result of the law taking effect.
“I think those are the types of decisions internally restaurants are making,” Winslow said. “I think some want to see what that transition looks like. It’s just not abundantly clear what that price differential is going to be.”
from other states that are in caged housing won’t be allowed in anymore,” Barr said. “Restaurants and things like that purchase eggs, a lot of them purchase the cheapest eggs they can find, which generally come from caged eggs out of state. That will no longer be allowed.”
Many restaurant operators remain uncertain what effect the cost of moving to cage-free eggs will have on their bottom lines.
Andy Havemeier, owner of Wealthy Street Bakery and Hall Street Bakery in Grand Rapids, estimates his businesses go through around 5,000 to 6,000 eggs a week, including both shelled and unshelled egg products.
Currently, Havemeier spends around $120 for a case of eggs, which contains 30 dozen eggs. His weekly spend can range up to
In the Grand Rapids area, Lobdell’s businesses include Grand Coney, Real Food Cafe, Bagel Beanery, Sundance, the Omelette Shop and Bakery, Red Geranium, and Noble, among others.
Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association, said he’s been informed that much of the price increase for cage-free eggs
For his part, Havemeier is sticking with shelled eggs, despite the cost increases they might incur.
“The liquid options just don’t work the same for a lot of our baked goods,” he said.
If the price of eggs changes significantly, Havemeier will have to assess almost every item on his menus.
“If the new egg prices would be in line with current prices, we would be OK,” he said. “But (if they go) much higher, we will have to adjust.”
Mayor Bliss reflects on nearly 2 decades of public service marked by investments
Rosalynn Bliss is approaching her last day as the mayor of Grand Rapids, a position she has held since 2016, when she became the first woman to hold the title in the city’s history. Before that, she was a second ward city commissioner starting in 2006. Mayor-elect David LaGrand will succeed Bliss, who is term limited. Bliss told Crain’s Grand Rapids Business that she is proud of how the city has changed during her nearly two-decade tenure in local government, including through reinvestment across the city’s neighborhoods and downtown. She also discussed unfinished business and her frustrations with the city’s manager-council, or weak mayor, form of government. | By
What are you most proud of that you helped the city achieve during your time as mayor?
I’m really proud that we’ve seen redevelopment in all of our neighborhood and business districts. The fact that we now have corridor improvement districts in all of our neighborhoods has created a tool and an opportunity for those districts to start to flourish. We have over 30 neighborhoods in our city and they’re all unique and they’re all, I believe, going through some kind of a renaissance.
I’m also proud of the work we’ve done around parks, trails, green space and trees. I was on the campaign committee when we passed two parks millages. I believe the investment that we’ve made in our neighborhood parks has been a part of those neighborhood revitalization efforts.
There is the resurgence of downtown as well. When you look at what we’ve done around activating public spaces where it’s not just the buildings and the people living downtown, but you have all of these amazing experiences that people can have while they’re here.
What do you consider to be unfinished business ahead of leaving office?
On that list of big projects is getting solar on the Butterworth Landfill. I worked on that project when I was a city commissioner with Mayor George Heartwell. We thought we had a plan about 10 years ago, and it fell through. It’s a project that I have actively worked on and still haven’t been able to get over the finish line. So I’m really hopeful that Mayor-elect LaGrand can do that. I told him when he does, he has to invite George and I to the groundbreaking.
Grand Rapids has a weakmayor system, or managercouncil form of government. How did you navigate that leadership system and was there a time when you wished you had more executive power?
Technically the mayor and elected body, we are considered part-time elected officials, even though I can tell you this is more than a full-time job. Being seen as a manager-council form of government, sometimes people don’t appreciate that. So finding
Kate Carlson
that balance of how we serve our city while having another job has been challenging at times.
I’ve been fortunate to have a good working relationship with our city manager, but I’d say one frustration, if anything, with this type of government is the fact that I am very task-oriented and I want things to move more quickly than they do. I’m big on outcomes and impact and the pace of government and how slow things go sometimes has been very frustrating to me, and I’m not in a position to tell those departments to make things a priority and move them along, which has been frustrating at times.
What kind of city is David LaGrand inheriting as mayor?
We’ve done a lot of hard work to make sure that, financially, our city is in a good place. We have a healthy budget stabilization fund and a healthy rainy day fund.
He’s also inheriting a city where we’ve had and we currently have a lot of positive momentum. We’re still a city that people want to live in. We still have companies moving here. We’re making some significant investments in public spaces, whether that is our trail system, the river restoration, the amphitheater and the soccer stadium. We continue to be, in my opinion, a bright light in the state of Michigan.
We also have challenges, and so as mayor, you have to balance both.
What are some of those challenges?
He will have to carry on some of the work that we started around helping individuals who have been chronically homeless — getting them housed and finding appropriate housing that provides support.
We still have a struggle with housing in general. We don’t have enough of it. Because we have a higher demand than supply, it’s just hard to find a house in the city right now or to find a place to live within your budget.
He’ll have to continue the work around building community and place relations. That’s work that will just continue because there’s a lot of history there and a lot of repair that needs to be had.
I’d also say climate change. We’re going to continue to have severe weather events, so becoming a more resilient city and preparing for some of those extreme weather events.
On housing, a group of community members are demanding developers of large projects in the city be responsible for including or funding affordable housing, especially if they are getting tax incentives. Most recently, we saw this with the Fulton & Market project. Should more be done?
Fortunately we’re seeing housing projects throughout the city including in our neighborhoods and some of them have affordable housing components and some of them don’t. I go back to the fact that our city needs housing at all price points, and we need to be a city that
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regardless of if you’re making less than $30,000 a year or you’re making over $300,000, if you want to live in our city, we want you to be able to find a place here.
I will continue to support using incentives to make sure that we are able to build housing in the city. If you say no to incentives, quite frankly, that housing will go somewhere else. If we want to continue to build in the city, especially on a brownfield site, we know incentives are needed to make those projects happen.
You are the first woman to sit in the mayoral seat in Grand Rapids’ history. Is that significant to you, and can you talk about when you started in this role and whether things are different today?
It is significant. I love that I’ve been able to be an example to other women and girls to show them that, you can serve, you can run for office.
When I was first elected as mayor, especially in the first year of my service, I would be with my partner, Brian Harrison, out at events … . Someone came up and tapped Brian on the shoulder and said, ‘We heard that you’re the mayor,’ and that happened probably at least 20 times. So that was an experience I wasn’t expecting, but it has since sunk in that we have a female mayor.
My hope is that when there’s another woman sitting in this chair, she doesn’t have that same experience where people don’t even imagine that you’re the mayor.
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