GLBM October 2016

G R E AT ER LANS ING

OCTOBER 2016

MSU FOOTBALL

An economic powerhouse for Greater Lansing IN THIS ISSUE •

BEHIND THE SCENES WITH JENNIFER GRANHOLM

•

HOW THINK TANKS TURN THE TABLE ON THE BUSINESS-GOVERNMENT RELATIONSHIP

•

THE PROS AND CONS OF FRACKING TODAY

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G R E AT E R

L A N S I N G

BUSINESS MONTHLY

OCTOBER 2016 ON THE COVER The pros and cons of fracking today .........................................6 How think tanks turn the table on the business-government relationship...........................................12 MSU Football: An economic powerhouse for Greater Lansing.......................................................................16 Behind the Scenes with Jennifer Granholm......................22

NEWS Lansing’s auto industry continues to expand with addition of Tenneco .......................................8 Lobbyists, business and governments..................................10

GRE AT E R L A NS I NG

OCTOBER 2016

16 FEATURE

Commentary.................................................................................................................................................. 4 Greater Lansing at a Glance ............................................................................................................... 14

MSU FOOTBALL

Visual Breakdown..................................................................................................................................... 24

An economic powerhouse for Greater Lansing IN THIS ISSUE •

BEHIND THE SCENES WITH JENNIFER GRANHOLM

•

HOW THINK TANKS TURN THE TABLE ON THE BUSINESS-GOVERNMENT RELATIONSHIP

•

THE PROS AND CONS OF FRACKING TODAY

Economy ...................................................................................................................................................... 26 Man on the Street ................................................................................................................................... 28 Business Spotlight.................................................................................................................................... 29 Business Calendar.................................................................................................................................... 30

Cover photography by Erika Hodges

Notable News ............................................................................................................................................ 32

Greater Lansing Business Monthly | Volume 29, Issue 10

group

Greater Lansing Business Monthly is published monthly by M3 Group at 614 Seymour Street, Lansing, MI 48933. Periodicals postage paid at Lansing, Michigan USPO. USPS number 020w807.

Subscriptions: Subscriptions are available at $22 per year for postage and handling or $38 for two years. Call (517) 203-0123 or visit lansingbusinessnews.com to subscribe.

Postmaster: Send address changes to The Greater Lansing Business Monthly, 614 Seymour Ave., Lansing, MI 48933. Send additional subscription requests and address changes to The Greater Lansing Business Monthly, Inc., 614 Seymour Street, Lansing, MI 48933. Copyright © 2016 The Greater Lansing Business Monthly, Inc. All rights reserved.

Editorial Office: 614 Seymour Street, Lansing, MI 48933 lansingbusinessnews.com 2

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COMMENTARY

G R E AT E R

L A N S I N G

BUSINESS MONTHLY

Publisher: Tiffany Dowling tiffany@m3group.biz Sales Manager: Jennifer Hodges jhodges@m3group.biz Media Specialist: Jill Bailey Account Managers: Austin Ashley Megan Fleming Manny Garcia Production Director: Kelly Mazurkiewicz Art Director: Mark Warner Communications Director: Ami Iceman-Haueter Graphic Designers: Kerry Hidlay Nikki Nicolaou Photographer: Erika Hodges Editor: Megan Martin Web Manager: Skylar Kohagen Event Calendar Manager: Jaime Hardesty

GLBM Editorial Board: April Clobes — President and CEO, MSU Federal Credit Union Trish Foster — Senior Managing Director & COO, CBRE|Martin Lisa Parker — Director of Alumni Career and Business Services, Michigan State University Alumni Association Deb Muchmore — Partner, Kandler Reed Khoury & Muchmore Tom Ruis — Vice President, Fifth Third Bank

THE BUSINESS OF SPORTS A touchdown for Mid-Michigan

W

e are a culture obsessed with sports. We are indoctrinated at a very young age. Have you ever witnessed 4 or 5-year-olds playing some type of sports together? It’s adorable. But, don’t be confused. We are preparing them for a lifetime as potential sports enthusiasts. And, because of that…it’s big business.

As I write this column, I’m sitting in a new Lansing-area sports bar. It’s filled with people from all walks of life and all age ranges, big-screen televisions that cover the walls and the servers are wearing sports garb from local and statewide sports teams like the Spartans and Tigers; I even spotted a Lion’s hat being worn proudly. I obviously showed up here in order to observe and be inspired by the industry firsthand — I’m certainly not alone in my interest in sports and the industry.

According to Forbes, in 2014 the sports economy is flourishing; projected to grow to around $145 billion between 2010 and 2015. There are many ways to participate in the sports industry including: attendance, travel, entertainment, sports marketing and sponsorship, sports media, new and updated facilities and even higher education institution programs related to training a generation of sports management individuals.

The education piece of the industry is growing at a faster-than-average projected rate of 15 percent.

In mid-Michigan, you would be hard-pressed not to see the value and depth MSU’s Big Ten sports program has on the area. Even if you’re not a huge follower of the wins and losses, at some level you are impacted by the pervasive influence of these programs. The MSU Athletic Department indicates that while 140,000 people are on campus for a Saturday football game, only about half go to the game. In this month’s cover story, you’ll read how a single football game can have a staggering impact on the region’s economy.

Whether you’re a football fan or not, you can’t deny that our community benefits from all that sports brings to our area financially. The other MSU sports teams along with regional programs like Lansing Lugnuts baseball, Capital City Stealth football and Lansing United soccer, are also contributors. My advice: support the community programs and reap the benefit of a stronger economy.

Doug Klein — Executive Director, Mason Area Chamber of Commerce Mark Hooper — Partner, Andrews Hopper Pavlik Diontrae Hayes — Supervisor Charter Township of Lansing Tiffany Dowling | Publisher

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NEWS

THE IMPACT OF HYDRAULIC FRACTURING

BY ALICIA PILMORE

With each new generation that comes of age, new issues – whether they are political, economic or otherwise – come to the forefront of people’s conversations. With the looming threat of diminished resources and the hazardous effects of climate change, the millennial generation has overwhelmingly decided to prioritize environmental issues and what can be done to prevent future generations from running out of vital resources.

One of the many environmental issues embraced by this generation, is the development of alternative energy sources in lieu of using natural gas; a finite resource that could potentially be further diminished if alternatives aren’t found. In the current state of the world, humans rely heavily on natural gas to power everything from cars to kitchen appliances. According to a 2010 study conducted by the United Nations Environmental Programme (UNEP), approximately 81 percent of global primary energy use came from fossil fuels.

The use of natural gas, especially at the rate that it is currently used, can cause a considerable amount of damage to the Earth’s atmosphere, causing global temperatures to continue to rise.

Even with more environmental consciousness, the demand for natural gas has not subsided and with fewer resources at their disposal, those who work in the oil and gas industry seek out ways to keep up with the demand. One of the ways that these companies have been able to do this is through the use of hydraulic fracturing.

Hydraulic fracturing, more commonly known as “fracking,” is a method for extracting oil and natural gas from rock formations beneath the earth’s surface. The process is fairly straightforward – wells are drilled as deep as a mile into the rock and once the well is constructed, a mixture of water, sand and a small number of chemicals are injected into the rock at a high pressure, which causes small fissures in the rock; allowing natural gas to flow into the well.

The practice of using hydraulic fracturing to extract oil and natural gas has come under intense

6

scrutiny in recent years; with many citizens concerned about the potentially negative impact the process could have on the environment.

Petitions to ban the use of fracking have appeared in many states and many politicians have weighed in on the issue. For example, former presidential candidate and Vermont Senator, Bernie Sanders, has vehemently opposed the use of fracking for years.

“If we are serious about combating climate change, we need to put an end to fracking not only in New York and Vermont, but all over this country,” said Sanders at a New York rally for his presidential campaign earlier this year, according to an April 11, 2016 article by ABC News.

While a number of politicians and environmentalists echo his sentiments, others are not convinced that the environmental impact is as great as it is often made out to be.

“In Michigan, we’ve had about 12,000 wells hydraulically fractured … we have a long history of it,” said Hal Fitch of the Office of Oil, Gas and Minerals at the Michigan Department of Environmental Quality.

“We’ve had about 80 high-volume fracking initiatives in the state of Michigan, and out of all of those, we’ve never had one case of environmental contamination from a fracking operation. The process itself has never caused direct contamination of water resources.”

On the contrary, Fitch noted that there were a number of benefits — many of them economic — to continuing the use of fracking, at least until another more sustainable energy resource is found to take its place.

“It’s got a number of benefits – it produces energy that’s in demand right now,” said Fitch.

“The operations employ people locally, they also generate revenue – of course for the company – but also for the land owners … ultimately, we’ll have to move on to other sources of energy, but right now we don’t have any replacements for the fossil fuel energy sources that we have.”

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

Hydraulic fracturing, more commonly known as “fracking,” is a method for extracting oil and natural gas from rock formations beneath the earth’s surface.

Aside from creating profits for the oil and gas industry, hydraulic fracturing ultimately helps to support Michigan’s parks and recreational areas.

Many of the oil and gas wells in Michigan are located on state-owned land, and the revenue generated from those wells goes into Michigan’s Natural Resources Trust Fund. This funding supports the development and maintenance of recreational properties owned by the state. When that fund is capped out, the revenue is directed to an endowment fund that supports the state’s parks.

With that in mind, Fitch added that hydraulic fracturing isn’t always in the best interest of the state; when the price of oil and gas is down, the cost of initiating the process far outweighs the benefits.

Of course, there is the possibility that hydraulic fracturing might harm the surrounding environment, but Fitch stated that with proper regulations, the risk of contamination is small.

“There’s quite a bit of misinformation about fracking and its environmental impact, and that’s not to downplay it. If it’s not managed well, there is potential for problems,” said Fitch. “Awareness of the potential problems and proper management is important, but in Michigan, we feel we have a pretty good handle on any issues that could arise.”

Alicia Pilmore is a freelance writer and graduate student at Michigan State University. She loves writing, wine tasting and spoiling her cat, Pishi.

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LANSING’S AUTO INDUSTRY CONTINUES TO EXPAND WITH ADDITION OF TENNECO

BY SARAH SPOHN

The capital city is proud to welcome a new clean air manufacturing plant, Tenneco, to the area’s already booming automotive economy.

The 70,000 sq. ft. facility opened on June 5 in an existing facility near the Capital Regional International Airport. Tenneco is a $8.2 billion global manufacturing Fortune 500 company, headquartered in Lake Forest, Ill. The automotive company provides jobs for approximately 30,000 employees worldwide.

It is one of the largest designers, manufacturers

and marketers of clean air and ride performance products and systems for automotive, commercial truck and off-highway original equipment markets as well as aftermarket products.

According to Michael Alzamora, senior manager of Global Communications at Tenneco, the large Lansing facility has 15 people working there currently, but expects that number to grow in 2017.

North American Clean Air spoke on behalf of the latest addition to Lansing.

“Tenneco is proud to support General Motors through our new facility in Lansing and we are dedicated to providing the highest quality products and excellent customer service,” Seurynck said.

Lansing is no stranger to automotive giants, with a rich history of car-and-driver tales from that of R.E. Olds and REO Motor Car Company.

The area is expected to continue the tradition with the newest addition of Tenneco.

In a Tenneco press release, Mike Seurynck, Tenneco vice president and general manager of

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exhaust assemblies made in the Litchfield, Mich. plant. Vehicles made in General Motors’ (GM) Lansing plant include the GMC Acadia, Buick Enclave and Chevrolet Traverse.

“We are delighted to welcome a major Tier One automotive supplier to the city,” Randy Hannan, Mayor Virg Bernero’s executive assistant, said. “Tenneco’s presence in Lansing adds even more momentum to our resurgent manufacturing economy, led by General Motors, and will continue to drive growth and prosperity in the Metro Lansing region for years to come.”

Globally, the automotive company serves customers from 93 manufacturing facilities and 15 engineering and technical centers, but the Lansing facility will mainly focus on sequencing

“GM’s two newest and most technologically advanced assembly plants, as well as the best labor force in America, continues to drive numerous, international auto suppliers to the Global Lansing market. Norplas, Kirchhoff VanRob and Tenneco are three new plants in just the last 18 months to open here,” said Bob Trezise, president and CEO of the Lansing Economic Area Partnership (LEAP).

Even as the auto industry continues to boom here in the greater Lansing area, Trezise said that the local economy is diverse and growing.

“While we welcome the advanced auto industry, we are also very fortunate as a local economy to say that the auto industry is just one slice of our pie, and not the whole pie, like the way it was some decades ago. I believe we are the most diverse local economy in Michigan. And we’re growing leaps and bounds in all sectors,” added Trezise.

Tenneco’s Lansing facility joins other Michigan locations including the North America Clean Air Tenneco plant in Grass Lake, North America Ride Performance Tenneco in Monroe, and engineering centers in Grass Lake and Monroe clean air manufacturing plants in Litchfield and Marshall.

Mayor Virg Bernero commented in a press release on the projected positive economic impact for Lansing.

“I’m delighted to welcome Tenneco to Michigan’s capital city,” Bernero said. “As a Tier One auto supplier, Tenneco’s new Clear Air facility in Lansing represents another economic boost not just for the city, but for all of Metro Lansing. General Motors and their local supply chain is the gift that keeps on giving and we are so fortunate that they continue to grow and prosper right here in Lansing.”

Sarah Spohn received her degree in Journalism from Lansing Community College. She’s a concert junkie; living and breathing in both the local and national music scene. She is proud to call Lansing her home, finding a new reason every day to be smitten with the mitten.

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LOBBYISTS, BUSINESS AND GOVERNMENTS The complicated and inescapable relationship

BY MICKEY HIRTEN

It’s a tentative dance where partners – business and government – are not entirely comfortable, and at times out of step, yet thoroughly intertwined.

detailing lobbyists’ clients and how much they spend, are filed and complied annually by the Michigan Campaign Finance Network.

At the local, state and federal levels, both recognize mutual needs: jobs, rules, investment, education and more. It’s a relationship based on politics, culture and finance.

Business interest in Michigan’s Legislature is vital considering the volume of rules and regulations championed during the session by lawmakers. Since Jan. 1, 2015, thousands of bills have surfaced in the Senate and House of Representatives, many of them affecting a broad spectrum of businesses in a multitude of ways.

Most never become law.

In 2015, 2,998 lobbyists, mostly representing business interests, spent $38.7 million to influence Michigan’s Legislature. Disclosure reports

Tracking a river of legislation this year, the Mackinac Center for Public Policy (MCPP) has identified 133 bills affecting licensing requirements; 48 dealing with economic development, 55 on energy, 30 dealing with financial institutions and 63 on general commerce. Altogether, the MCPP tracks more than a dozen business sectors whose operations, finances, workers, taxes and fees are affected by provisions within hundreds of bills. Whether a business reacts favorably or unfavorably depends on a bill’s intent and reach.

“What business wants from government is a fair playing field with no favors,” said Michael LaFaive, director of the Mackinac Center’s Morey Fiscal Policy Initiative. “By promoting one industry or business, government must, by default, demote other industries or businesses.”

His view reflects the organization’s doctrine of the free market economy and a belief that government wastes billions of dollars investing in failed economic development initiatives.

Other groups engaged in the business/government relationship are less “free-market” absolute than the Mackinac Center, which focuses on research and policy rather than product.

“At the Lansing Regional Chamber of Commerce, members want government that is able to deliver essential services, infrastructure and public safety,” said President and CEO Tim Daman.

“It’s not so much, get out of the way, as having a fair regulatory process. It’s important, as well, that it helps us attract and keep talent and that it supports a quality of life that makes a region a dynamic place to live,” explains Daman.

Daman, like other business leaders, acknowledges that government relations exist on many levels. He feels that the two sides need a better understanding of their roles and needs within the relationship.

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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

NEWS

“Sometimes there’s a disconnect. In too many instances around [greater Lansing], some of our elected officials will lump businesses all together, saying business is bad,” said Daman.

Part of the problem is the lack of business participation in local government, especially in Lansing. Daman acknowledged that serving in elected office, a government board or a commission, can be difficult and entail long hours.

As a result, basic business needs are misunderstood or not fully weighed by public bodies.

“The remedy is engagement,” said Mike Rogers, vice president of communications for the Small Business Association of Michigan.

“We tell members across mid-Michigan that it is crucial to be involved at all government levels, especially at the local level. The decisions that most affect small businesses are those by planning boards, commissions and supervisors.

If you are involved at the most grass-roots level, it’s much more valuable than showing up and complaining about a policy.”

Rogers added that local politics is less likely to be divided by ideological labels and that sharing neighborhoods, schools, kids’ sports teams and

other common community interests, breaks down barriers and leads to a better understanding.

“From a state capital perspective, the business/ government relationship has many facets,” said Rep. Sam Singh (D-East Lansing).

“There are multiple roles; one is they are partners. At times, business and government jointly train employees for jobs; getting people the life and academic skills they need to prepare for the workforce. Sometimes government is the supply chain for business. At other points, we have to be the tax collector or the regulator.

What all sides have to understand is that, if we communicate well with one another, there can be a strong relationship between government and business. It can help government succeed and help business grow,” he said.

For lobbying firms like Government Consulting Services Inc. (GCSI), communicating with all levels of government on a variety of issues is what it offers its roster of 100 clients - about 60 percent of them business related. The firm spent $1.67 million on lobbying in 2015, according to the Michigan Campaign Network. Only Karoub Associates spent more – $1.74 million.

“I don’t think anybody can deny that even if they may not enjoy it, a clear relationship exists. That’s where an organization like ours comes into play, trying to help shape the environment so that small business can compete and survive,” said Michael Hawks, an officer with GCSI. He said that a level of trust between business and government is essential in an era of term limits, where the House turns over every six years and the Senate every eight.

“What we want are meaningful and reasonable regulations and tax policies that provide an opportunity for business to grow and expand,” Hawks said. “For business and government, it’s a marriage by design or involuntary. But they have to exist together.”

Mickey Hirten is an award winning writer and editor. He has been executive editor of the Lansing State Journal, the Burlington Free Press in Vermont, and was the financial editor and a columnist for the Baltimore Evening Sun. He is the current president of the Michigan Press Association. His wife, Maureen Hirten, is director of the Capital Area District Library.

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SMALL BUSINESSES AFFECT GOVERNMENT Think tanks emerge as major players

BY SARAH SPOHN

Most people would agree with the fact that politics have a strong influence and clear impact on how small businesses work. The idea that small businesses can have a huge impact on corporate politics and procedures, however, is a less-discussed topic.

Oftentimes, it’s easier to see that legislation from Capitol Hill has a significant impact on local businesses than vice versa.

A recent article in The New York Times by Eric Lipton and Brooke Williams discussed the idea of how think tanks affect corporate America’s influence. The article, published in August 2014, took a closer look at the Lennar Corporation, who utilized Brookings Institution, the most prestigious think tank in the world.

“Think tanks, which position themselves as ‘universities without students,ʼ have power in government policy debates because they are seen as researchers independent of moneyed interests,” said Lipton and Williams in their New York Times article.

Think tanks have become vessels carrying corporate influence and campaigning for a variety of issues like international trade, highway management, real estate development and more. Think tanks argue that they are 12

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

not directly tied to any sort of corporate agenda, but rather, team up with donors with similar goals. This is done with integrity, independence and impact.

Businesses don’t always wish government would just step aside, as they are a co-dependent system. As previously discussed in the December 2015 issue of GLBM, Lucas Puente and his team of researchers at Thumbtack conducted a survey of more than 400 small business owner/operators from Michigan. Their goal was to determine how small businesses and the government interact. Their findings were published in the Thumbtack 2015 Small Business Friendliness Survey Report.

What Thumbtack found was that small businesses were overwhelmed at the idea of following their dreams, due to the stack of paperwork, confusing state websites and forms waiting to be navigated.

The report revealed that many entrepreneurs and local service professionals in our state found it harder to find the information, tools and resources to begin a start-up. States like Texas, Tennessee and Oregon have plenty of local organizations to assist.

Lansing is home to a plethora of organizations which gracefully blend the world of politics

FEATURE

and government with small, locally-focused and produced businesses. The Small Business Association of Michigan (SBAM) is the only statewide and state-based association with a sole focus on serving the needs of small businesses statewide. According to their website, they have over 25,000 diverse members, with a goal to help small businesses succeed by “promoting entrepreneurship, leveraging buying power and engaging in political advocacy.” When these businesses band together through the Small Business Association of Michigan, they achieve more than they could on their own.

11 offices in nine states and Washington, D.C., partnering with 150 business organizations including local and regional chambers.

Access to capital, tax policy, healthcare, freelance economy, infrastructure, minimum wage, workforce training, clean energy, immigration reform and exports are all key topics of the organization.

On a national level, there are plenty of other resources with local ties. Small Business Majority is a national small business advocacy organization.

Its founders and members are small business owners with a focus on solving big problems that small businesses face. Part of their mission is to engage small business owners nationwide and educate and move forward with public policy and provide resources needed for success.

According to their website, the Small Business Majority community is vast, diverse and dynamic, just as small business owners are. “Small business owners are pragmatic, not ideological.

And contrary to a long-held misconception, they are not reflexively anti-government. They want government to understand their needs and respond in a constructive matter. Therefore, we work with policymakers on a national and state level to advocate for policies that create jobs and maximize business opportunities and cost savings in tax reform, healthcare, clean energy, access to capital, infrastructure, workforce and more.”

Through entrepreneurship and revitalization, small, local businesses can be forces to reckon with regarding economic development on a larger scale. The Small Business Majority includes

Chris Armstrong of the Small Business Majority oversees all local programs in Michigan. He spoke on the power of a small business’s voice in politics.

“Small business has a powerful voice in the public policy debate, but that voice is often lost or misrepresented in state legislatures and the halls of Capitol Hill. A great example of this is the prominence of states enacting anti-LGBT legislation, like HB 2 in North Carolina,” Armstrong said.

“Our research shows small businesses overwhelmingly oppose this type of legislation and they believe laws like these drive away talented employees and customers and harm state economies. It’s crucial that policymakers at both the local and national level really listen to small business owners on these issues and enact policies that will help entrepreneurs thrive.”

Just because a business is small does not mean it cannot have a huge impact on the national level of politics. Executive Director of the Business & Community Institute at Lansing Community College, Baldomero Garcia, agrees. “The primary value proposition of a think tank is not merely to provide analysis, insight and input on matters of the day, but to seed dialogue and debate,” said Garcia. “This outcome is itself worth as much if not more than the data/input itself.”

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LANSING AT A GLANCE

GREATER LANSING AT A GLANCE Each month, Greater Lansing Business Monthly compiles statistics showing the growth of the greater Lansing area month to month. This information is not comprehensive, but rather, a snapshot of the area’s growth throughout the year. The following is a look at the advances some of Lansing’s biggest businesses have made in the past two months.

MICHIGAN RETAILERS ASSN. INDEX

BUREAU OF LABOR STATISTICS: LABOR FORCE DATA

A monthly gauge of key retail activity in the state; values above 50 generally indicate an increase in activity.

The regular report from the Bureau of Labor Statistics tracking the region's job performance.

July ‘16

June ‘16

May ‘16

April ‘16

July '15

Sales

45.7

53.9

65.1

66.0

63.9

Inventory

57.2

59.5

61.8

61.1

61.1

Prices

50.6

52.0

47.9

51.2

Marketing/Promotion

55.3

61.6

63.0

Hiring Plans

53.4

54.7

55.3

July ‘16

June ‘16

May ‘16

April ‘16

July '15

Civilian Labor Force (1)

(P) 241.9

242.2

248.6

249

239.2

51.8

Employment (1)

(P) 231.2

232.5

237.2

240.8

226.3

63.1

57.9

Unemployment (1)

(P) 10.7

9.7

11.3

8.2

12837

57.6

53

Unemployment Rate (2)

(P) 4.4

4

4.6

3.3

5.4

Values above 50 generally indicate an increase in activity

BUREAU OF LABOR STATISTICS: WAGE & SALARY

KEY STOCKS — MONTH-END CLOSE

The regular report from the Bureau of Labor Statistics tracking the region's job performance.

A report on price changes for key local stocks and others that reflect the health of the region's economy.

July ‘16

June ‘16

May ‘16

April ‘16

July '15

(P) 224.6

226.6

228.9

231.1

218.2

12-month % change

(P) 2.9

2.1

0.2

1.9

1.5

Mining, Logging & Construction (3)

(P) 7.7

7.6

7.2

6.6

7.4

Total Nonfarm (3)

12-month % change

(P) 4.1

2.7

1.4

0

1.4

Manufacturing (3)

(P) 21.0

21.2

18.9

20.9

19.4

12-month % change

(P) 8.2

7.6

-2.6

7.7

3.7

Trade, Transportation & Utilities (3)

(P) 35.2

35.8

35.7

35.5

34.4

12-month % change

(P) 2.3

2.3

1.4

2

3

Information (3)

(P) 3.1

3.1

3

3

3.1

Aug. ‘16

July ‘16

June ‘16

May ‘16

Aug. '15

Spartan Motors

9.86

8.49

6.26

6.40

4.37

General Motors

31.92

31.54

28.30

31.28

29.44

Emergent BioSolutions

26.65

31.53

28.21

43.88

31.44

Neogen

59.06

55.15

56.25

49.37

51.64

Gannett (Lansing State Journal)

11.93

12.76

13.81

15.62

13.11

Gray Broadcasting (WILX)

11.23

9.90

10.85

11.82

11.59

Media General (WLNS)

17.67

17.59

17.19

17.84

11.75

Bank of America

16.14

14.49

13.27

14.79

16.34

UPS

109.22

108.10

107.72

103.09

97.65

Home Depot

134.12

138.24

127.69

132.12

116.46

Kroger*

31.99

34.19

36.79

35.76

34.50

12-month % change

(P) 0.0

3.3

0

0

0

Financial Activities (3)

(P) 16.0

16

15.8

15.6

15.7

12-month % change

(P) 1.9

1.9

1.9

2

1.9

Macy's Inc.

36.18

35.83

33.61

33.21

58.61

Wal-Mart Stores

71.44

72.97

73.02

70.78

64.73

Professional & Business Services (3)

(P) 22.3

22.7

22

22.9

21.7

12-month % change

(P) 2.8

2.3

-2.2

4.1

1.4

Education & Health Services (3)

(P) 30.8

30.5

30.7

30.7

29.9

12-month % change

(P) 3.0

0

-0.6

0

-1

Leisure & Hospitality (3)

(P) 20.1

19.8

19.4

19

19.3

12-month % change

(P) 4.1

0.5

-1

0

2.1

Other Services (3)

(P) 10.2

10.3

10.2

10.1

10.2

12-month % change

(P) 0.0

0

1

1

-1.9

Government

(P) 58.2

59.6

66

66.8

57.1

(P) 1.

1.9

1.2

1.2

1.6

12-month % change

*Adjusted for stock split

An indicator of the Greater Lansing region’s business and housing growth.

BUSINESS

Clinton

(1) Number of persons, in thousands, not seasonally adjusted.

(2) In percent, not seasonally adjusted.

(3) Number of jobs, in thousands, not seasonally adjusted. See About the data.

(P) Preliminary

14

CONSUMERS ENERGY SERVICE STARTS

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

Aug. ‘16

July ‘16

June ‘16

Aug. '15

YOY Change

4,056

4,057

4,025

4,018

0.95%

Eaton

5,104

5,094

5,100

5,074

0.59%

Ingham

11,428

11,419

11,426

11,131

2.67%

TOTAL

20,588

20,570

20,551

20,223

1.80%

Aug. ‘16

July ‘16

June ‘16

Aug. '15

YOY Change

Clinton

29,346

29,285

29,252

28,928

1.44%

Eaton

41,494

41,447

41,424

41,157

0.82%

Ingham

97,670

97,422

97,500

96,183

1.55%

TOTAL

168,510

168,154

168,176

166,268

1.35%

GRAND TOTAL

189,098

188,724

188,727

186,491

1.40%

RESIDENTIAL

OCTOBER 2016

LANSING AT A GLANCE

GREATER LANSING ASSOCIATION OF REALTORS HOUSING REPORT A look each month at significant real estate pricing and listing trends.

Aug. ‘16

July ‘16

June ‘16

May ‘16

Aug. '15

Active Listing Count

2,224

2,280

2,129

1,680

3,099

Active Listing Volume

$416M

$420M

$391M

$304

$511M

New Listing Count

996

899

1024

873

986

New Listing Volume

$167M

$153M

$175M

$152M

$154M

Average Listing Price

$187K

$185K

$184K

$181K

$165K

Average Listing / sq. ft.

$101

$101

$100

$100

$94

Days on the market

85

91

87

81

102

Months of Inventory

3.2

3

3.4

3

4.5

Pending Sales Count

860

799

979

1,040

624

Pending Sales Volume

$133M

$122M

$146M

$165M

$92M

97

98

98

98

N.A.

Percentage of Listing Price

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15

: L L A B T O O F N SPARTA

GAME DAY DRIVES

JOBS AND TOURISM

BY MICKEY HIRTEN

In Lansing, nothing says goodbye to summer quite like Spartan football.

economic activity, supported on game day by thousands of workers, both on campus and off.

Seven home games attract more than one million fans to MSU’s East Lansing campus; where a win reverberates throughout the community. A loss? Well, that’s football; wait until next week.

From ticket takers, to cleanup crews, cooks and concessionaires, game days between August and November require an army of workers.

But win or lose, the Spartan’s economic engine powers millions of dollars into regional 16

“There is simply no comparison between home game and away game weekends,” said MSU’s Senior Associate Athletic Director Greg Ianni. “We have anywhere from 120,000

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

and 140,000 people on campus on game day.

Maybe 73,000 are going to the game. The remainder are here to enjoy the campus and festivities leading up to the game.”

While much of the activity revolves around Spartan Stadium, the swell of visitors spill into buildings across campus, all drawn toward the excitement and pageantry of Big Ten football. It involves all departments; including countless alumni and donor functions, as well

COVER

as admissions office events to lure new students.

“From an athletic standpoint, we employ more than 1,200 people on game day,” Ianni said.

Ianni’s department budgets $200,000 for wages, which covers only a fraction of the total cost considering some workers are salaried and department work schedules are adjusted to cover game day. Pay scales vary widely with full-time employees working under union contracts. Police support, drawn from departments throughout the area, have different pay scales – again, based on their contracts.

With the grounds being overrun by fans, it’s no surprise that 50 officers from different departments attended this year’s first matchup.

Ianni said that while much of what happens in East Lansing on game day is similar in intensity and activity to football Saturdays at other Big Ten universities, the MSU campus poses unique challenges because its stadium is located in the middle of the campus.

“At some schools, like [the University of] Michigan, the stadium is on the edge of campus.

Here, football impacts the entire campus,” he said.

The athletic department’s 1,200 game day jobs typically handle tasks directly associated with the game like ticket sales, ushers, parking lot attendants and security. The department is also responsible for policing; which extends to the edge of the campus, for cleanup crews and custodial services.

The workforce is a mix of both students and more seasoned workers. Inside the stadium, some of the game day staff have been working football Saturdays for generations. “They are loyal and passionate about what they do and the fans recognize it,” Ianni said. “There are folks from other departments who will jump in on a Saturday for some extra pay.”

All of the expense is defrayed by the football program. According to pennlive.com, during

the 2014-15 fiscal year, MSU football produced $59.2 million in revenue from ticket sales, television revenues and assorted Big Ten income streams (University of Michigan led the conference in revenue at $88.3 million).

MSU’s football revenue accounted for 55 percent of the athletic department’s $108.7 million 2015 income.

Athletic department jobs account for only half of game day employment. MSU’s hospitality operation shifts into overdrive during the football season; servicing the stadium, luxury suites, the university’s hotel and conference center and other assorted pre- and post-game events.

Hospitality oversees the crisply attired servers tending sumptuous buffets in the stadium tower, the volunteer organizations manning concession stands and private contractors selling everything from sub sandwiches to cotton candy. Food service staff cooks the 20,000 hot dogs and prepares the 75,000 drinks consumed on campus.

“We could have as many as 1,200 people supporting our food operations,” said Vennie Gore, MSU’s vice president for auxiliary enterprises. “We’re probably in the ballpark of between $300,000 and $400,000 in terms of labor costs.”

What workers earn from game day jobs varies on their individual skill set, explained Gore.

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17

COVER

“They [the workforce] are loyal and passionate about what they do and the fans recognize it. There are folks from other departments who will jump in on a Saturday for some extra pay.”

- MSU’s Senior Associate Athletic Director Greg Ianni

“Food service dining work starts at $9.50 an hour and can go up to $13 an hour. Cooks start at $12 or $13 an hour and their pay can go up to $17 an hour,” Gore said.

Most football related services are channeled through MSU’s Spartan Hospitality Group; which includes the Breslin Student Event Center, Spartan Signature Catering, the Kellogg Center and various other conference sites.

The campus jobs associated with Spartan football are a small slice of the overall economic jolts provided to the Lansing region each year.

Separate studies commissioned for Michigan’s University Research Corridor and the Ann Arbor Area Convention & Visitors Bureau, and prepared by the Anderson Economic Group of East Lansing, outline the tens of millions of dollars in economic activity directly attributable to Big Ten football.

A study of the 2013 University of Michigan football season pegged the total economic impact at $81.8 million. An early study by Anschutz Entertainment Group (AEG), analyzing the 2007 season of both Michigan and Michigan State, found that the programs energized the state economy by $177 million.

The impact studies accounted for spending based on categories such as food and drink, shopping, auto (gasoline, parking and other related expenses) and lodging (average price per-night, room occupancy, average expense).

Clearly, and logically, the greatest economic jolt comes from out-of-state attendees. In the 2007 study, 12 percent of those attending MSU games were out-of-state residents. However, when the schools play one another, out-of-state attendance wanes while in-state attendance soars.

What makes out-of-state fans particularly valuable is their “new dollar spending.” The study found that 95 percent of their food, travel, lodging and other expenditures happened only because of Big Ten football.

As for spending by in-state fans, 75 percent of purchases would have been done in the state regardless of football. For students, it’s 80 percent.

The indirect impact of football spending as it ripples through the economy, just about doubles its value. The AEG studies applied a 99.94 percent multiplier in the 2007 study, while their most recent analysis of Michigan football’s economic benefit within the Ann Arbor market raised the multipliers closer to 150 percent.

COMFORT...NO MATTER WHAT THE WEATHER BRINGS • • •

“Those are big fall weekends for our industry,” said Jack Schripsema, president and chief executive officer of the Lansing Convention and Visitors Bureau.

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The effect is particularly strong for greater Lansing’s lodging industry. There are 4,400 rooms in the region that stretch from Williamston to Grand Ledge and from St. Johns to Mason.

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A similar bump from MSU spending would apply to the Lansing region.

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

WHATEVER IT TAKES.

OCTOBER 2016

“We really feel it on football game days and have trouble placing groups. People call for those weekends and say they’d like to stay in East Lansing. You can’t get a room when a team comes in and takes up a whole property,” Schripsema said.

And it’s not just the team. Sometimes visiting schools send their bands, cheerleaders and dance teams. “Add in the fans and that’s all fresh dollars,” Scripsema said.

He added, however, that not all Spartan games are equal and that businesses do really well

with games against rival teams like Michigan or Ohio State.

On a typical fall weekend without football, area hotels and motels are 50 to 60 percent booked.

On a strong football weekend; 90 to 95 percent.

The games also affect room rates. For the 12

months ending in June 2016 the average room in the region cost slightly more than $100 per night. Whereas, on a football weekend the rates increase to the $110 to $115 range.

“We’re very fortunate to have one of the Big Ten universities,” said Scripsema.

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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

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sure that it’s carefully circumscribed, that the process is fair and open. Funding research and tech-transfer at universities is one way of going about that.

It’s to the benefit of the U.S. to invest in the research to make that happen, and sometimes even giving loans to companies to do that. As long as the loans are paid back, I see no problem with it.

But you can’t put all of your eggs in one basket.

BY MICKEY HIRTEN

REFLECTING ON YOUR TENURE, HOW WOULD YOU CHARACTERIZE THE RELATIONSHIP WITH MICHIGAN’S BUSINESSES?

JENNIFER GRANHOLM Governor of Michigan from 2002 – 2010 and current professor in law and public policy at University of California Berkeley Jennifer Granholm, 57, Governor of Michigan from 2002 – 2010, now teaches courses in law and public policy at University of California Berkeley (UC Berkeley), where she serves on the faculty.

She is co-chair of Hillary Clinton’s 2016 presidential campaign transition team and an occasional television commentator.

WHAT IS THE RELATIONSHIP BETWEEN GOVERNMENT AND BUSINESS? Each has an important role. You can’t have one without the other. Government has to be there to set the rules of the road, for businesses to thrive in the United States. The big debate is; what is that role? What is the lane that government occupies? I would be in the camp that says government needs to work with business to formulate that role.

That includes investment and talent, in infrastructure, in making sure that there is access to capital for businesses to be able to expand and in all of the wraparound services that make businesses successful.

I should say that government perhaps has a stronger role in investing in sectors and businesses at the point where they know the growth potential.

WHAT WOULD BE A GOOD INVESTMENT? Let me use energy as an example. If there is a desire for us to really break through on getting 22

As a public policy matter, if we want investment in infrastructure, we need a contract, and someone is going to get picked. Is that picking winners? I think that kind of nomenclature is really kind of antiquated. What is going to get people employed and make the U.S., and businesses in the U.S., successful?

electric vehicle batteries that go 500 miles to the charge, government has a role in encouraging companies and universities to invest in the research to get us there, because the private sector wants an immediate return.

Sometimes that might mean failures, but most early stage research done by government has been successful.

AS MICHIGAN’S GOVERNOR, YOU IMPLEMENTED THAT PHILOSOPHY. OUR CURRENT GOVERNOR REJECTS THE IDEA OF PICKING “WINNERS AND LOSERS.” I think government ends up picking winners and losers all the time. They may not expressly call it that, but if the oil and gas industries get subsidies, you might call that a winner because they get what economists term “rent transfers.”

I don’t think there is a problem with the government deciding that it wants more exports for products built in the USA. I don’t think it’s a problem, if you want to invest in sectors that will employ people. You just have to make

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

I had a great business council, a great relationship with the businesses that advised and worked with the MEDC. I know that the business community was pushing for lower taxes. We devised a way of doing that which was different from what the Michigan Chamber of Commerce wanted.

TALK ABOUT SOME OF THE SUCCESSES. There are lots of examples of great partnerships that ended up helping companies in Michigan. We started this Michigan Energy Innovation Council which had all of these clean energy businesses.

It was very helpful, an initiative to let businesses shape policy to create supply and demand.

When we were going through the auto meltdown I had a very strong relationship with the industry and suppliers. We were trying to work through ways to get the White House to provide access to capital so that they would not have to completely shut down everything. That restructuring proved to be very beneficial.

DO YOU THINK MICHIGAN’S TERM LIMITS ENHANCE THE BUSINESS COMMUNITY’S ABILITY TO INFLUENCE POLICY? Yes, I think it does. Lobbyists in Lansing are great, many of them very good people, very smart people and so the new members of the legislature have to rely on the advice they are given by whomever they meet with, including lobbyists. Obviously, the business community is one of their constituencies. But for the legislature, term limits in Michigan are just too

BEHIND THE SCENES

short to allow legislators to develop very much expertise on their own.

But I do think that on the governor’s side, two terms are enough.

BASED ON YOUR PERSONAL EXPERIENCE? Yes, I think it is. You leave everything you have on the floor after two terms. You need some fresh perspective.

JOBS AND BUSINESS ARE INTERSECTING WITH NATIONAL ISSUES OF INCOME INEQUALITY. WHAT CAN GOVERNMENT DO TO HELP? I tie the growth of income inequality directly to the decline in middle class jobs through globalization and to productivity increases through robotics, with Michigan having experienced a disproportionate share of that.

Some of this is tied to international trade agreements which need to be enforced. And government has a role in that. As I said in my book, “A Governor’s Story: The Fight for Jobs

and America’s Economic Future,” we’ve been a pussy cat and not a tiger at the WTO (World Trade Organization).

The question is, how government can partner with businesses to make the U.S, the states and regions, irresistible locations to create economic clusters? Some of it involves the states thinking strategically about what policies we can adopt to attract clusters that are a natural fit.

For example, if you’ve got significant supply chain potential in an area, and you have a resource base to support that supply chain and an anchor university that does supply chain research, you can start to see the beginning of a supply chain cluster.

You have to identify the products for the U.S. to be competitive in a global economy. We are not going to choose products that require repetitive motions. Rather, we need to focus on extremely complex products; products that are too heavy to ship or products that require a level of skill that you are not going to find globally.

Without a manufacturing strategy, I think we will continue to see that inequality exacerbated.

YOU WERE GOVERNOR WHEN THE ECONOMY COLLAPSED. AS YOU LOOK BACK, ARE THERE THINGS YOU WOULD HAVE DONE DIFFERENTLY TO CUSHION THE FALL? If we had had a legislature that was more cooperative, we could have made sure we accelerated infrastructure investments and all that.

We had a debate on taxes (about replacing the Single Business Tax with the Michigan Business Tax). The idea was to lower taxes for those who were providing middle class jobs. If I had to do it again, I would have simplified that.

But we didn’t always have a partner in the legislature. The efforts to invest in education were the right efforts; to get people to complete their degrees. And our efforts on diversification were the right thing.

People can blame me for the fall of the auto industry, but that is just obviously ignorance.

This conversation with Jennifer Granholm has been edited for space and clarity.

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Michigan’s Evolving Relationship WITH BUSINESS Michigan’s relationship with businesses changed drastically between the Granholm and Snyder administrations, from one based largely on tax credits and incentives, to the other, focused on regional economic development and tax relief.

The biggest change came in 2011 with a repeal

Big Tax Relief $1.7 BILLION INITIAL TAX OVERHAUL

created through 2011 elimination of the MBT

6% CORPORATE INCOME TAX created in 2011, replaces lost MBT revenue

$500 MILLION ANNUAL BUSINESS SAVINGS FROM PERSONAL PROPERTY TAX phase-out in 2014

U.S. Certified Development Company loans $15 MILLION

Maximum business net worth to qualify

$5 MILLION

Maximum net profit over prior two years to qualify

of the Michigan Business Tax (MBT), a move ending most state taxes on small to mid-sized businesses. Businesses are saving additional tax dollars through the phasing-out of the state’s personal property tax.

Governor Snyder also phased-out the state’s film tax credits, perhaps former Governor Granholm’s signature effort to boost local

Film Incentives FILM TAX CREDITS UNDER GRANHOLM

businesses. The program, which once brought scores of Hollywood A-listers to the Great Lakes State, was shut down through a 2015 law signed by Snyder.

Michigan’s relationship with its business community continually evolves. Here’s a look at how:

Brownfield Redevelopment as of 2010 (most recent data available)

$85 MILLION

$142 MILLION

$117 MILLION

$33.7 MILLION

in 2008

in 2009

$158 MILLION in 2010

in grants and

in low-interest loans for more than

300 BROWNFIELD redevelopment projects

FILM PROGRAM UNDER SNYDER Annual appropriation, starting with

$25 MILLION

$4.2 BILLION in generated private investment

PLUS JOBS CREATED

Energy Efficiency and Renewable Energy Loans

Commercial Redevelopment Act of 1978

$2 MILLION

$50,000 TO $350,000 Range of approved loans for supplies, materials and equipment

20%

Minimum energy reduction to qualify

$200,000

MINIMUM INVESTMENT IN REDEVELOPMENT AREA

$75,000

MINIMUM INVESTMENT IN BUILDING REHAB OR RESTORATION

25 PERSONS

MINIMUM SEATING CAPACITY

23,000

The program, ended by 2015 law; approved incentives honored

Amount available for loans

Redevelopment Liquor License

12 YEARS

Length of property tax break on replacement, restoration and new construction

Commercial Rehabilitation Act of 2005 10 YEARS

Length of property tax break for building rehab projects

15 YEARS

Minimum age of property to qualify

APPLIES TO:

Obsolete commercial property in existing zones Land cleared due to fire damage or as blighted area

Compiled by: Christopher Behnan | Sources: Livingston County Daily Press & Argus, Lansing State Journal, Michigan Film Office, Michigan Economic 24

G R E A T E R L A N S I N G B U S I N E S S M ODevelopment N T H LY O C T O B (MichiganBusiness.org), ER 2016 Corporation Michigan.gov

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ECONOMY

THE BALANCE OF INTERNATIONAL PAYMENTS

BY MORDECHAI E. KREININ, UNIVERSITY DISTINGUISHED PROFESSOR (EMERITUS), MSU

Last month’s column outlined the importance of exchange rates in affecting a country’s import and exports and hence, its trade balance. Exchange depreciation makes the country more competitive while appreciation makes it less competitive.

Exports give rise to inpayments of funds, which are considered positive items, while imports result in outpayments which are considered negative items. U.S. imports are usually far greater than exports and as a result, the trade balance is in deficit, or negative, in most years.

But a country’s international transactions include more than just commodity trade.

Apart from commodity trades, international transactions include services such as: Banking: where banks in one country provide services to customers in another country

Insurance: where insurance companies in one country provide services and charge premiums to customers in another country Education: where students from one country study in educational institutions of another country Legal: where law firms from one country provide services to citizens or companies of another country Consulting: where consulting companies from one country provide services to companies of another country In all cases, money flows in both directions.

The transactions that gives rise to an inflow of money we count as an export and hence they are considered positive items. Transactions

that result in an outflow of funds are counted as imports and therefore are valued as negative items. In most years, the U.S. had a large surplus (or positive balance) of service transactions, meaning that exports exceeded imports; but not as large as the negative trade balance. So when the two are combined to obtain a balance on goods and services, the outcome is negative in most years.

Finally, we add financial (capital) flows into the U.S., which is positive, and out of the U.S., which is negative, to obtain the total picture of U.S. economic transactions with the rest of the world. This statement is called the country’s Statement of International Transaction or its balance of payments. The same presentation is made for every country. For the U.S., in most years the net overall number is negative.

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OCTOBER 2016

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ECONOMY

In other words, the U.S. needs to pay out more dollars than it takes in so its balance of payments is negative.

How is that negative balance settled? For the most part, it is settled by debt — the U.S. owes the money to foreigners. In other words, over the years we accumulate debt in trillions of dollars to foreign governments and/or private entities, which is U.S. liability and foreigners’ assets. Much of the money is “invested” by foreigners in U.S. government bonds of various durations, considered the safest asset in the world. Foreign central banks count these bonds their international reserves; countries need such reserves to tide themselves over in situations of excessive deficits or debts to foreigners, sometimes resulting in financial crisis.

Since WWII, the U.S. dollar has been the prime mode of such reserves. Apart from reserves, the dollar also serves as an “international transactions currency,” meaning that many private transactions between people and companies in countries not involving the U.S. are financed in dollars and the prices of many international commodities, such as oil, are quoted in dollars. The dollar is more than just the currency of the U.S., it is an international reserve and transactions currency.

The suitability of the dollar to serve as an international reserve currency can be traced back to the post WWII era, when much of the world was in ruins and the U.S. was the only source of goods for post-war reconstruction and development. But the dollar remains so suitable for this purpose because: • It is backed by the largest economy in the world.

• It is a stable currency in terms of prices of goods and services, because of U.S. price stability.

• The U.S. capital market is huge - foreign central banks can always place their funds in assets (such as bonds) that are convenient to them and sell such assets as they see fit.

Woods, N.H. to develop a postwar international financial system. They set up two institutions: The World Bank, to serve the development needs of developing countries and the International Monetary Fund (IMF) to oversee financial relationships, such as exchange rates, and provide loans to countries in financial need. Both institutions are located in Washington, D.C.

Mordechai Kreinin is a University Distinguished Professor of Economics, emeritus at Michigan State University and past President of the International Trade and Finance Association.

He is the author of about 200 articles and books about economics, including the widely used text, International Economics. He can be reached at kreinin@msu.edu or by cell phone at (517) 488-4837

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MAN ON THE STREET

MAN ON THE STREET HOW CAN BUSINESSES AND GOVERNMENT WORK TOGETHER TO CREATE JOBS?

I think the biggest thing is having everyone on the same page in all aspects.

-CHRISTINE HAAN

Governments have the responsibility to create a pro-growth business environment (low taxes, incentives, infrastructure), and businesses, in turn, provide a strong tax-base for government. Good symbiotic relationship.

-JOHN MEDENDORP

Michigan is awesome because there is a place for big businesses as well as the small mom and pop shops. Government needs to work to make taxation levels work to allow small businesses to thrive just as easy as a big business.

I think high end companies should work with the government to bring more jobs to common poverty areas. I also believe the government should give more companies loans to open more stores to provide jobs.

-JEFF STENGLEIN

-LARRY NIXON

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BUSINESS SPOTLIGHT

Spotlight on business:

MSU FEDERAL CREDIT UNION

BY AMI ICEMAN-HAUETER

The world’s largest university-based credit union is about to get even bigger. With Michigan State University Federal Credit Union’s (MSUFCU) headquarters campus expansion underway and a growth plan to double their team in the next 10 years, the well-known credit union shows no signs of slowing down.

With more than $3.25 billion in assets, a membership of more than 220,000, more than 700 employees, seventeen branches and more ATMs than any other institution in the greater Lansing area, MSUFCU continues to develop in ways that best benefit their members and the community. Through dedicated and knowledgeable employees, new technologies and innovative products and services, the credit union works to provide more ways for members to achieve financial success.

MSUFCU has experienced growth each year and its latest campus expansion will allow the credit union to grow into the new space for years to come. The 187,000 sq. ft. building features three floors plus a lower level and is scheduled to be completed in summer 2017. The building will house MSUFCU’s call center, e-services team and information technology department. The move will take place over two months to ensure there is no disruption in service.

are dedicated to finding and retaining the best talent in the region to meet those goals.”

And the progress doesn’t stop there, MSUFCU also recently opened its intern center. The MSUFCU Financial Innovation and Education Center (FIEC) provides professional experience to college students in the greater Lansing area.

“This initiative provides students an opportunity to be in a work environment, learn interview skills and operations skills.

The hope is they will be able to learn their strengths and grow so we can work with them to find opportunities to join us full-time after graduation,” said April Clobes, MSUFCU president and chief executive officer. “We are committed to developing the talent we have to build on our strong foundation. We

“We take care of our employees just like we take care of our members,” Clobes said. “Our employees make this all possible. There is great culture and value within the organization that shows in our service. Our employees are here every day for our members and take care to provide outstanding service and also give back to the communities we serve as well.”

MSUFCU lives up to that promise and was named on Fortune’s 50 Best Workplaces for New College Grads list based on employee feedback and new job growth. But it’s not just college grads who reap the benefits of MSUFCU’s outstanding culture, employees of all ages and backgrounds that thrive within the organization.

The credit union and its employees take special care to give back to the communities they serve, while also supporting areas in an entirely different way – through economic growth.

MSUFCU currently employs over 700 team members that live, work, play and spend money around the region. MSUFCU will not only be

bringing new jobs to the area, they will, in turn, be impacting the community economically through additional homes purchased, healthcare services utilized and entertainment activities purchased by its growing team.

And while the MSUFCU team will grow over the next several years and the organization will see some exciting changes, their dedication and commitment to providing the best service to their members will not.

“MSUFCU is here to help our members achieve their dreams. Whatever they might be,” Clobes said. “Yes, we can provide competitive rates and a full array of products and services but what comes with that is personal service. We take care of our members and provide them with the tools and information they need to make smart financial decisions and feel empowered to take that next step to achieve their dreams.”

Ami Iceman-Haueter is the Brand Manager at M3 Group. IcemanHaueter is a graduate of Michigan State University with a bachelors in creative advertising.

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BUSINESS CALENDAR

OCTOBER 2016 OCTOBER 5 AVOIDING RECRUITMENT PITFALLS, LANSING Not everyone is cut out for every job. The role of a business owner is to accurately describe a job and ensure that the candidate is the right fit for the position. This webinar teaches you how to identify top candidates and accurately spot the wrong ones. Join fellow business owners as you learn how to pin down the perfect candidate for your open positions! This seminar is $75 for members and $95 for non-members. Stop by michamber.com.

OCTOBER 6 ERISA MYTHS DISPELLED: COMMON PITFALLS & COMPLIANCE PROBLEMS, LANSING ERISA has been around a long time. Many business owners assume no additional steps need to be taken to be in compliance and that

not much new has happened. This webinar will dispel these myths and will explore what should be done, when to do it and what the cutting edge of ERISA looks like. You can learn more about this webinar at michamber. com. Cost is $75 for members and $95 for non-members.

OCTOBER 12 INNOVATE STATE PRESENTS SPEAKER GINA RIZZI, EAST LANSING Enjoy free pizza and beverages as you listen to speaker Gina Rizzi talk about her entrepreneurial journey. Rizzi is the president of ARCUS Marketing Group, LLC. She is the co-founder of IMPACT 360 Group and a founding partner of a life sciences company. Her passion is to help businesses drive financial performance while positively impacting society and the environment. Rizzi is speaking from 6 to 8 p.m. at the MSU Innovation Center. Register for this free event by visiting eventbrite.com.

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OCTOBER 12 OSHA RECORD KEEPING: 2017 REPORTING REQUIREMENTS, LANSING Starting in 2017, many employers will be required to electronically submit the summary of injuries and illnesses to OSHA. This one day, comprehensive record keeping training class will address old and new reporting requirements, what’s recordable and what’s not, how to report injury and illness to OSHA/MIOSHA and much more! This seminar is $270 for members and $295 for non-members. Visit michamber.com for more information and registration details.

OCTOBER 13 SAFETY AUDITS & ACCIDENT INVESTIGATION, LANSING To keep employees safe and to ensure compliance with OSHA regulations, employers must understand how to use proactive safety audit tools and consistent practices that prevent accidents. This seminar will cover topics

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OCTOBER 2016

GREATER LANSING

BUSINESS CALENDAR

ranging from the importance of safety audits to systematic approaches to conducting effective safety audits and accident investigations. This seminar is $270 for members and $295 for non-members. Stop by michamber.com for more information and registration details.

OCTOBER 19 EMPLOYEE HANDBOOK WORKSHOP, LANSING Crafting an employee handbook can seem like a daunting task, but it’s a critical tool for all employers. An employee handbook that isn’t crafted well to communicate your expectations or doesn’t comply with local, state and federal laws is extremely risky. This workshop will help employers feel confident that their key company policies are clearly and consistently communicated, while also helping employees understand what’s expected of them and where to turn for assistance. This workshop is $270 for members and $295 for non-members. Visit michamber.com for more information and registration details.

OCTOBER 25 ETSY MARKETING TIPS FOR SUCCESSFUL SELLING, LANSING Any successful Etsy-prenuer will tell you that setting up your shop is the first step to a successful business. You have to pay attention to details and even more so to your customers if you’re going to stand out from your competitors. Jessica Goodrich from the Capital Area District Library will present several tips to help ensure your selling success at Lansing Community College at the SBDC Capital Region Office on October 25 from 10 to 11 a.m.

Registration is free at clients.sbdcmichigan.org.

OCTOBER 25 MANAGING LEAVES OF ABSENCE, LANSING The FMLA is one of the most difficult employment laws for employers to manage in the workplace. The law can be complex and disruptive to business operations. However, it gives employees a substantial number of

benefits and protections, regardless of the impact on the employer. This webinar explores the practical solutions for dealing with an employer’s growing obligations for managing medical leaves of absence. The webinar is $75 for members and $95 for non-members. Stop by michamber.com to register.

OCTOBER 27 HEALTHCARE FORUM, LANSING The Lansing Regional Chamber’s annual Healthcare Forum features local healthcare leaders as they discuss the future trends and challenges facing the delivery of healthcare. We provide examples of small, mid-size and large businesses that have successfully decreased employee health-related expenses through wellness and health management programs. The morning Healthcare Forum is presented in conjunction with the afternoon Lansing Regional Chamber Economic Club luncheon. The 2016 Healthcare Forum & Economic Club luncheon will start at 8 a.m. and end at 11:30 a.m. Stop by lansingchamber.org for more information.

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GREATER LANSING CONVENTION AND VISITORS BUREAU ACHIEVES RE-ACCREDITATION The Greater Lansing Convention and Visitors Bureau (GLCVB) is pleased to announce that it has been awarded re-accreditation from the Destination Marketing Accreditation Program (DMAP). The GLCVB is the first CVB in Michigan to successfully renew this esteemed designation. DMAP is an international accreditation program developed by the Washington, D.C.-based Destination Marketing Association International (DMAI). In retaining the DMAP accreditation, destination marketing organizations (DMOs) communicate to their community, buyers and potential visitors that their DMO has attained the highest possible measure of excellence.

“The GLCVB is honored to receive reaccreditation from DMAI,” said Jack Schripsema, president and CEO of the GLCVB. “We are very pleased to be recognized in the destination marketing community for providing outstanding services in accordance with international standards and benchmarks in this field.”

“DMAP accreditation requires DMOs like the Greater Lansing Michigan CVB to truly evaluate and define not only their policies and procedures, but also determine their guiding principles with the ultimate goal of building a sense of pride in the community when a DMO meets the highest standards in the industry,” said Virginia J. Haley, CDME, DMAP board chair.

to marketing the greater Lansing area as a destination for leisure travelers and convention business of all kinds. For more information about the GLCVB, visit lansing.org.

BEST LAWYERS IN AMERICA NAMES LANSING ATTORNEYS AS “LAWYERS OF THE YEAR” Loomis, Ewert, Parsley, Davis and Gotting is happy to announce that two attorneys have been recognized and named by The Best Lawyers in

The GLCVB joins the ranks of over 200 DMOs who have obtained DMAP recognition that demonstrate compliance across 16 disciplines, composed of 53 mandatory standards and is globally recognized by the destination marketing industry as the highest achievement in destination excellence. For additional information on DMAP, visit destinationmarketing.org.

GLCVB has been a driving force for tourism for over 50 years and is committed

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America as “Lawyer of the Year” for Lansing, Mich. in their respective practice areas - Paula Manis as the Mediation 2017 “Lawyer of the Year” and Michael Rhodes as the Oil and Gas Law 2017 “Lawyer of the Year.”

In addition, The Best Lawyers in America has recognized the following Loomis attorneys, in their practice areas, for 2017: • Kenneth W. Beall - Real Estate Law • Jack C. Davis - Real Estate Law • Karl L. Gotting - Administrative/Regulatory Law, Real Estate Law • Jeffrey L. Green - Real Estate Law • Catherine A. Jacobs - Family Law, Elder Law, Trusts and Estate • Paula K. Manis – Arbitration, Mediation, Oil and Gas Law • James R. Neal - Energy Law, Natural Resources Law, Oil and Gas • Michael G. Oliva - Administrative/Regulatory Law, Energy Law • Michael H. Rhodes - Corporate Law, Health Care Law, Oil and Gas Law, Real Estate Law • Kevin J. Roragen - Commercial Litigation, Municipal Law • Jeffrey S. Theuer - Commercial Litigation

DART BANK IN GRAND LEDGE WELCOMES NEW MANAGER Peter Kubacki, president and CEO of Dart Bank, is pleased to announce the addition of Nicole Perry, as Grand Ledge office manager.

Perry has been in the banking field for over 15 NICOLE PERRY years. She has Office Manager at served as a Senior Dart Bank in Customer Service Grand Ledge Representative, Personal Banker and Financial Center Manager. She has a bachelor's degree in Business Management from Davenport University, and a master's degree of Science in Human Resources from Central Michigan University.

Wheels, Ronald McDonald House, Lansing Food Bank, Riverbank Run and New World Flood.

LOCAL PHYSICAL THERAPY GROUP AWARDED STATEWIDE HONOR Peak Performance Physical Therapy of Lansing, Mich. was awarded CORP! Magazine’s Economic Bright Spot Award. The award was presented in June to a group of small businesses who are helping make Michigan a great place to work and live while also helping to grow the state’s economy. Peak Performance Physical Therapy was among that elite group.

“I’m very proud of our entire team,” said CEO and Founder, Jill Marlan. “They are an exceptional group of health professionals who care about our patients and our role in the community. I’m honored to work with such a wonderful team.”

JILL MARLAN CEO and Founder, Peak Performance Physical Therapy

The awards were presented at the VisTaTech Center in Livonia, Mich.

Peak Performance Physical Therapy recently moved into a state-of-the-art facility on the city’s

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west side to better serve the community. They are orthopedic manual physical therapists, massage therapists, personal trainers and athletic trainers that provide physical therapy services, personal training, massage, sports performance programs and corporate fitness programs.

In addition, Tom Sinas, who manages the firm’s Grand Rapids office, has been listed as a “Super Lawyers 2016 Rising Star” in the field of plaintiffs’ general personal injury, while Joel T. Finnell has been named a “Super Lawyers 2016 Rising Star” in the field of appellate law.

SINAS DRAMIS ATTORNEYS NAMED “MICHIGAN SUPER LAWYERS” AND “RISING STARS”

Attorneys recognized as Super Lawyers are selected through a nomination, research and peer evaluation process. The list represents no more than 5 percent of the lawyers in each state. For Rising Stars, no more than 2.5 percent of the lawyers in each state are named to the list.

Five Sinas Dramis attorneys have been named “Michigan Super Lawyers” in the field of general personal injury: George T. Sinas; Timothy J. Donovan; James F. Graves; Bryan J. Waldman; Tom Sinas and Stephen H. Sinas.

NAI MID-MICHIGAN/TMN COMMERCIAL ANNOUNCES NEW PROPERTY SALES NAI Mid-Michigan/TMN Commercial is pleased to announce the sales of a few properties in the greater Lansing area. The 209217 Free Street property, located in Fowlerville, is a well maintained – 100% occupied – 12 unit apartment complex. Logan McAnallen represented both the Seller and Buyer of this transaction. The second sale is at 610 N. Cedar Street in Mason. This 100% occupied 19,150

sq. ft. retail strip center anchored by RiteAid Pharmacy & Advanced Auto Parts was purchased by an out of area investor. Jeffrey Shapiro represented the Seller and Logan McAnallen represented the Purchaser.

CASE CREDIT UNION NAMED 2016 BEST CREDIT UNIONS TO WORK FOR CASE Credit Union has been named one of the 2016 Best Credit Unions to Work For. Credit Union Journal has partnered with Best Companies Group to identify companies that have excelled in creating quality workplaces for its employees.

This survey and awards program is designed to identify, recognize and honor the 45 best credit unions. The full Best Credit Unions to Work For list will be featured in the September issue

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CAPITALIZATION RATE VS. CASH-ON-CASH RETURN

BY DAVID W. ROBINSON

Like other industries, commercial real estate professionals use many terms that are somewhat specific to our industry. When speaking of investment property, two of the most often used terms are “capitalization rate” and “cashon-cash return.” Both terms are expressed as a percentage and are related. Perhaps because of this relationship, some can be confused by these terms.

Capitalization Rate is sometimes shortened to cap rate. The last article contributed by our office defined cap rate as, “a measure of the relationship between the net operating income (NOI) and the sale price of the property. The NOI is calculated by subtracting the total operating expenses from the gross income for a given year. The cap rate is then calculated by dividing the NOI by the sale price.” This value is expressed as a percentage.

Many investment properties are offered using a cap rate to determine the asking price. For example, if a property generated a NOI of $10,000 34

and the price was based upon a 10 percent cap rate, the price would be $100,000. The mathematics is $10,000/10 percent = $100,000.

Cash-on-Cash Return for many purchases can be a more important evaluation tool than the cap rate as it represents the cash return on the cash invested in the property. Typically, investment properties are purchased using debt (bank or other financing). In today’s local financing climate, this will often mean the bank will require approximately 20 percent down payment and finance the balance of the purchase price over 20 years at five percent annual interest.

In the cap rate example above, the buyer will pay $20,000 (20 percent) down at closing with the balance of the purchase ($80,000) financed over 20 years at 5%. The debt will require monthly payments of approximately $528 at an annual cost of $6,336. This cost will reduce the NOI from $10,000 to $3,664. The $3,664 cash remaining divided by the $20,000 invested

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

(down payment) results in a cash-on-cash return of 18 percent. This cash-on-cash return is substantially higher than the cap rate. This higher rate of return is caused by the buyer making a small return on the borrowed funds because the 10 percent cap rate is greater than the five percent mortgage rate.

For all investment transactions in which I am involved, I perform an analysis to show the prospective buyer both the cap rate and the cash-on-cash return for a variety of purchase scenarios. From this information, a buyer can make an informed purchase decision and nearly assure bank financing to be possible depending upon the buyer’s credit.

Dave Robinson is Corporate Services Director at NAI Mid-Michigan TMN Commercial with much experience in both small and very large transactions, including assisting buyers with purchase financing.

NOTABLE NEWS

of Credit Union Journal and is available online at CUJournal.com.

“CASE Credit Union is honored to be recognized as one of the recipients of this award,” stated Jeffrey Benson, president/CEO. “It’s rewarding to know our employees were the drivers of this distinction. It’s through them that we are able to achieve success.”

To be considered for participation, credit unions had to fulfill the following eligibility requirements: To have at least 25 employees working in the U.S; To be in business a minimum of one year; To be in one of the following categories based upon asset size: Over $1 billion, $500M - $1B, $200M $500M, or under $200M. Determining the Best Credit Unions to Work For involved a two-step process. The first step consisted of evaluating each participating credit union’s workplace policies, practices and demographics. This part of the process was worth approximately 25 percent of the total evaluation. The second part consisted of employee surveys, aimed at assessing the experiences and attitudes of individual employees with respect to their workplace. This process was worth approximately 75 percent of the total evaluation. The combined scores determined the best credit unions and the final ranking. Best Companies Group managed the overall registration, the survey process and analysis of data in consideration of their expertise to determine the final ranking.

Tim Daman, LRCC president and chief executive officer. “We understand the critical nature of public transportation, however, in this case we believe other options need to be considered.”

said Joe Ford, chair of the LRCC Board of Directors. “Feedback from our members and the business community among other concerns has led us to conclude that the current BRT plan is not feasible for the corridor.”

Among the concerns that have been raised in regard to the proposed BRT system include a lack of other viable options, no clear revenue projections from the proposed BRT route, significant disruption from the loss of the center turn lane for businesses along the corridor, addressing long-term operational costs and how funding gaps will be filled if federal and state funding falls short.

“This has been a difficult decision for us. The Chamber has been a strong advocate for the development of the Michigan Avenue Corridor as a top priority for the greater Lansing region,” said

Among the options LRCC would like to see developed are a BRT system with curbside loading, a Capitol to Campus route as well as a comprehensive regional transportation plan including scheduled service in Delta Township and improved connectivity to major employers in Metro Lansing as well as improved service to Capital Region International Airport.

“We support and believe further investment in the Michigan Avenue corridor is critical to our region’s economic growth and success,” said Ford. “Let’s begin by investing in road reconstruction, sidewalk and curb repairs and improved lighting.”

In a recent LRCC member survey, an overwhelming 66 percent of members said they were opposed to the current BRT plan, while 75 percent would like to see a more comprehensive regional transportation plan that provides access and connections to Clinton, Eaton and Ingham counties.

LANSING REGIONAL CHAMBER OPPOSES CATA’S PROPOSED BUS RAPID TRANSIT PLAN The Board of Directors of the Lansing Regional Chamber of Commerce (LRCC) has voted to not support the Bus Rapid Transit (BRT) System that the Capital Area Transportation Authority (CATA) has proposed for the Michigan Avenue corridor. The proposed BRT route extends along Michigan Avenue; from the State Capitol in downtown Lansing to the Meridian Mall in Okemos. The decision to not support the BRT system comes following months of research on the part of LRCC. Their efforts include trips to other communities that have invested in similar systems, a policy committee meeting with Chamber members, a presentation from CATA leadership and a member survey.

“While we appreciate CATA’s efforts in developing and presenting the BRT concept to our region. We continue to have concerns that prevent us from supporting the current proposal,” L

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“We believe infrastructure investments we are advocating for are desperately needed, to support the more than $300 million in planned economic investment along the Michigan Avenue corridor and continue to move our region forward,” said Daman.

OKEMOS SALES PRO RECOGNIZED AS TOP INTERNATIONAL PERFORMER

respect and repeat business,” said Dave Muhleck, owner of Allegra in Okemos. “I am proud of her achievement and what her dedication means to the ultimate success of our customers. She is tireless in her pursuit of service excellence and helping customers succeed through her knowledge of the many marketing communications options available to small and mid-sized businesses.”

Michelle DeVore, account manager at Allegra Marketing, Print and Mail of Okemos was recently recognized with the Honors Sales Cup by the Alliance Franchise Brands network. This award is presented to the sales professional with the highest percentage sales increase over the previous year.

DeVore also received a Silver Milestone Award in further recognition of her sales excellence.

Allegra Marketing, Print and Mail of Okemos, located at 2863 Jolly Road, is a full-service marketing communications provider offering marketing consultation, copywriting and graphic design services, traditional and advanced printing technologies including full-color printing, signs, posters and banners, complete finishing services, mailing services, variable data capabilities, promotional products, print management solutions and engraving services.

DeVore, a resident of Lansing, joined Allegra three years ago and has dedicated herself to understanding and meeting the needs of today’s small and mid-sized business marketers.

KINCAID HENRY HIRES MARILYN CROWLEY AS DEVELOPMENT SERVICES LEADER

“Michelle is committed to working as a true partner with our customers, to help them grow their business through innovative and affordable marketing efforts, which has earned her their

Kincaid Henry is excited to welcome Marilyn Crowley as the newest member of their team.

Crowley has a BA in Community Relations

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G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

Apple Vacations is offering its most extensive flight schedule ever from Capital Region International Airport (LAN) to warm-weather international destinations this winter, with a total of 90 departures scheduled for Cancun and Puerto Vallarta, Mexico and Punta Cana, Dominican Republic.

The tour operator will offer non-stop flights, six days a week, aboard 180-seat Miami Air International Boeing 737-800 jets beginning Dec. 26 and ending April 17.

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At Kincaid Henry, Crowley is the development services leader. In this position she will be leading their team and clients to strategize on the best project financial packaging, while coordinating and leading the team toward facilitating various city, county, state and federal real estate development and redevelopment incentives, producing real estate proforma’s and engaging with various financial institutions that are involved in Kincaid Henry’s clients’ projects. Crowley’s breadth of experience, drive, know-how and focus in her role at Kincaid Henry will enhance the company’s ability to lead the development team to serve its clients and bring their projects to success and fruition.

APPLE VACATIONS PLANS THE LARGEST-EVER WINTER FLI GHT SCHEDULE FROM LANSING AIRPORT

Phil Clacko

517.324.7400

from Michigan State University and is a Certified Economic Development Finance professional. Before coming to Kincaid Henry, she worked at the Michigan Economic Development Corporation (MEDC). There, she assisted with the statewide launch of the Redevelopment Ready Communities® Program, which evaluates local municipalities against six business-friendly best practices.

Also, in her role as a community assistance team specialist, she worked across nine counties to help incentivize over 100 million dollars of private investment in real estate development.

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OCTOBER 2016

“Apple’s 2016–17 schedule at Capital Region International Airport is a significant upgrade from last season,” said Nicole Noll-Williams, LAN’s director of marketing and passenger development, noting that Apple has now

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chartered flights typically fill up fast, and she advised travelers not to delay in booking their vacations.

Apple’s Lansing winter service will kick off on Monday, Dec. 26, to Cancun. After then, flights depart on Sundays from Jan. 1 through April 16, Thursdays from Jan. 26 through April 13 and Fridays from Jan. 6 through April 14. offered seasonal flights from Lansing for nine consecutive years.

“Last year there were 17 departures to a single market – Cancun – and this year there are 90 flights to three different locations, offering a wide range of convenient and non-stop getaways for Christmas break, Easter and spring break vacationers,” said, Noll-Williams.

Many of the new flights were based at Detroit Metropolitan Airport last winter, but Apple transferred them to LAN for the 2016–17 season, taking advantage of LAN’s central location for Michigan travelers.

For more information or to book an Apple Vacation visit applevacations.com or FlyLansingTravel@craa.com.

WILLINGHAM & COTÈ WELCOMES NEW ATTORNEY Willingham & Cotè, P.C. is pleased to welcome Heather Gilkey to their firm. Gilkey brings more than 16 years of legal experience and will be further developing the firm’s business and corporate law, estate planning and real estate law practice areas. In addition to her

Noll-Williams said another factor in the airport’s favor was its federal inspection station, the only location in Michigan other than Detroit Metropolitan Airport where air travelers can clear customs. Noll-Williams noted that Apple-

FUND THE FUTURE Your scholarship gift helps ensure that Lansing area students have access to the higher education that leads to career opportunities.

The LCC Foundation is dedicated to removing financial obstacles for all those working towards a brighter future.

Jim Lammers Trustee, Dart Foundation “The Dart Foundation is proud to partner with Lansing Community College Foundation to provide students with the training needed to pursue a career in the skilled trades.”

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

Willingham & Cotè, P.C., based in East Lansing, Mich., has been serving the legal needs of individuals, families and businesses for more than 50 years. The firm’s attorneys represent clients in Michigan and throughout the U.S. For more information, visit willinghamcote.com.

INTERNATIONAL LUXURY TEA COMPANY OPENS NORTH AMERICAN OFFICE IN EAST LANSING

Get Involved. Fund the Future.

To give, visit lcc.edu/fundthefuture 38

exceptional legal skills, Gilkey has extensive business, leadership and philanthropic experience via her community involvement with the Zonta Club of East Lansing Area, Junior League of HEATHER GILKEY Lansing, WKAR Development Counsel, Athena WIN and Impression 5 Science Center.

International luxury tea company, Newby Teas of London, plans to open its first North American location in East Lansing, Mich. with the help from Michigan State University (MSU) graduate, Raji Singh, the Lansing Economic Area Partnership (LEAP), and others.

Singh, brand ambassador of Newby Teas and MSU graduate, had the opportunity to work for the international luxury tea company in London, with branch offices in 12 countries after her graduation in 2014. Singh worked with senior administrators at MSU and community leaders outlining the company’s mission and long-term plans including growing their brand presence in North America, South America and the Caribbean, and several opportunities to collaborate with MSU and Michigan-based businesses, with regard to educating and training future talent, procurement of services, and later for research. Envisioning a return home, while training in London last year, Singh started a conversation with resources in the Lansing region, specifically MSU Product Center, LEAP, the City of East Lansing, SBDC Michigan and others. The strong involvement of these organizations contributed to the company’s decision to base their office adjacent to MSU in East Lansing.

“I am pleased that Raji, the Singh family, and Newby Teas of London chose the Lansing

OCTOBER 2016

SPONSORED

AFFORDABLE, VOLUNTARY BENEFITS FOR EMPLOYEES

BY THAD ANDERSON

Anderson & Associates Agency, a partner with Colonial Life, is located in East Lansing, off Lake Lansing Road by US-127. As the owner of Anderson & Associates, I have worked in East Lansing and Ingham, Eaton and Clinton counties since 2015. Colonial Life is the number one core enroller of employee benefits in the U.S. We pioneered voluntary benefits in 1939 and payroll deductions in 1955. Our workforce acts as benefit counselors to help employees bridge the gap with any holes in their current health insurance. Most of our services are free to the employer, with benefits being 100 percent voluntary and employee paid.

Voluntary benefits are the fastest growing sector in the insurance industry due to the Affordable Care Act and rising healthcare costs. Our goal is to protect the incomes of hard working Americans today by not going bankrupt due to unplanned medical costs. Colonial Life products are designed so employers can offer them to employees and their families. Products and services offered

As a veteran of sales, customer service, and management for 13 years, not only am I passionate about Lansing area businesses, I am passionate about developing employees.

We have promoted two MSU graduates to corporate positions with Colonial Life in 2016 from our agency. Our agency also has a footprint on the Lansing community. I am currently the Area Manager with Girl Scouts Heart of Michigan for East Lansing – I truly believe that GSHOM builds girls of courage, confidence and character who make the world a better place.

through our agency include benefits education, complimentary value-added services, advanced yet simple to use enrollment technology and quality personal service.

We cater to small businesses with three to 100 employees, but we also work with large businesses, health brokers, school districts and cities in the public sector market. My overall objective is to continue developing the East Lansing district for Colonial Life. By continuing to stay focused on the principles of expansion, aggressive and attainable growth, full service and a strong agent field force, we will continue to enhance our reputation and customer base in the market.

Thad graduated from Walsh College in Troy, MI with a BBA in Business Management in 2007 and St. Clair County Community College in Port Huron, MI with an AA in Liberal Arts in 2005.

Thad has been active in the Lansing area helping businesses and the community since September 2015.

On top of being East Lansing's District Manager for Colonial Life, he is also an Area Manager for the Girl Scouts Heart of Michigan in East Lansing.

Reasons why employers choose Colonial Life End-to-end service Need enrollment assistance? Want to reduce administrative burden?

We can help every step of the way.

Money-saving strategies We’re constantly thinking about ways to save you money.

Sound familiar?

Personalized benefits counseling We meet 1-to-1 to help everybody get the benefits that are best for them. Which is also best for you.

To learn more, contact: Thad Anderson 517-336-3515 Thad.Anderson@ColonialLife.com

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©2016 Colonial Life & Accident Insurance Company, Columbia, SC | Colonial Life insurance products are underwritten

by Colonial Life & Accident Insurance Company, for which Colonial Life is the marketing brand.

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NOTABLE NEWS

region to be home to the company’s first North American office. Newby Teas will have a strong support network and resources available to them being located near Michigan State University and the MSU Product Center,” said Bob Trezise, president and CEO of LEAP. “Welcome Newby Teas of London, and thank you to all of the partners who have helped make this possible.”

MSUFCU RECOGNIZED AS TOP FIVE IN THE NATION FOR FINANCIAL EDUCATION MSU Federal Credit Union (MSUFCU) is pleased to announce that it was recognized as fifth in the nation for its financial education program by the National Youth Involvement Board (NYIB). MSUFCU was ranked in the $1 billion and above in total assets category.

This ranking was generated by the NYIB and included in its annual report. Credit unions were ranked based upon the number of financial education presentations given to students from kindergarten to college, from July 1, 2015 to June 30, 2016. The Credit Union gave 228 presentations during this time. MSUFCU was also ranked third in the nation based on how many students were reached through the presentations, with 8,510 attendees throughout the year. Michigan was ranked as the top state for the total number of presentations given throughout the year, at 2,284.

“This recognition affirms an essential part of our mission, to provide financial education to members of all ages,” said April Clobes, MSUFCU’s president and CEO. “Our financial education presence in the community increases each year, and with the growth, we continue to find new and innovative ways to provide children and young adults with the knowledge and resources needed to be financially successful throughout their lives.”

MSUFCU financial educator gives a presentation to college students.

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Statement of Ownership, Management and Circulation (Requester Publications Only) 1.

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Publication Title: The Greater Lansing Business Monthly Publication Number: 020-807 Filing Date: August 30, 2016 Issue Frequency: Monthly Number of Issues Published Annually: 12 Annual Subscription Price: $22 Mailing Address of Known Office of Publication and Contact Person and Phone Number: 614 Seymour Avenue, Lansing, MI 48933 Ingham County, Jaime Hardesty (517) 203-3333 8. Mailing Address of Headquarters or General Business Office of Publisher: 614 Seymour Avenue, Lansing, MI 48933 Ingham County 9. Names and Addresses of Publisher, Editor, and Managing Editor: Publisher: Tiffany Dowling, 614 Seymour Avenue, Lansing, MI 48933; Editor: Megan Martin, 614 Seymour Avenue, Lansing, MI 48933 Ingham County; Managing Editor: Megan Martin, 614 Seymour Avenue, Lansing, MI 48933 Ingham County 10. Owner: Tiffany Dowling, The Greater Lansing Business Monthly, 614 Seymour Avenue, Lansing, MI 48933 11. Known Bondholders, Mortgages, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages, or Other Securities: None 12. Tax Status: Has Not Changed During Preceding 12 Months 13. Publication Title: The Greater Lansing Business Monthly 14. Issue Date for Circulation Data: October 2016 15. Part A: Extent and Nature of Circulation, Number of Copies of Each Issue During Preceding 12 Months: a. Total Number of Copies: 6390 b. Legitimate Paid and/or Requested Distribution: 1. Outside County Paid/Requested Mail Subscriptions: 1385 2. In-County Paid/Requested Mail Subscriptions: 4519 3. Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Paid or Requested Distribution Outside USPS: 0 4. Requested Copies Distributed by Other Mail Classes Through the USPS: 0 c. Total Paid and/or Requested Circulation: 5904 d. Non-requested Distribution: 1. Outside County Non-requested Copies: 0 2. In-County Non-requested Copies: 0 3. Non-requested Copies Distributed Through the USPS by Other Classes of Mail: 0 4. Non-requested Copies Distributed Outside the Mail: 200 e. Total Non-requested Distribution: 200 f. Total Distribution: 6104 g. Copies not Distributed: 286 h. Total: 6890 i. Percent Paid and/or Requested Circulation: 97% 16. Part B: Extent and Nature of Circulation, Number of Copies of Single Issue Nearest to Filing Date: a. Total Number of Copies: 6300 b. Legitimate Paid and/or Requested Distribution: 1. Outside County Paid/Requested Mail Subscriptions: 1391 2. In-County Paid/Requested Mail Subscriptions: 4445 3. Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Paid or Requested Distribution Outside USPS: 0 4. Requested Copies Distributed by Other Mail Classes Through the USPS: 0 c. Total Paid and/or Requested Circulation: 5806 d. Non-requested Distribution:

1. Outside County Non-requested Copies: 0

2. In-County Non-requested Copies: 0

3. Non-requested Copies Distributed Through the USPS by Other Classes of Mail: 0

4. Non-requested Copies Distributed Outside the Mail: 200 e. Total Non-requested Copies Distributed Outside the Mail: 200 f. Total Distribution: 6006 g. Copies not Distributed: 294 h. Total: 6300 i. Percent Paid and/or Requested Circulation: 97% I certify that 50% of all my distributed copies are legitimate requests or paid copies.

17. n/a 18. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the October 2016 issue of this publication.

I, Tiffany Dowling, Publisher and Owner certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).

G R E AT E R L A N S I N G B U S I N E S S M O N T H LY

OCTOBER 2016

We Help Your Business Grow your business is ready for the next step.

Contact us for: • Term loans • Lines of credit • SBA loans • Fixed- or variable-rate options MSUFCU is here to help your business grow.

Business loans are only available to Michigan-based businesses.

All loans are subject to credit approval. Federally insured by NCUA.

Contact us today.

• msufcu.org/business • 517-333-2365

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