Lenawee Now 2016 Annual Report

Ervin: Tecumseh Facility

Siena Heights University

Inteva

2016 ANNUAL REPORT

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2016 AN N UAL RE P ORT

COMMUNITY

Friends, Investors, Stakeholders, Businesses & Residents: As I reflect on the last year, I am proud to see the number of new programs and exciting business opportunities in our region. I am also inspired by the centennial anniversary of Lenawee Now, which brought to our attention the numerous innovations and companies with a place in our county’s history. We could be content with boasting past achievements, instead we use it as fuel to show the world we can be more innovative as we move into the future..

Coming from an entrepreneurial family myself, I can say that Lenawee County is a great place to grow a business. In 2016, entrepreneurs received yet another tool to get started: the Adrian/Tecumseh SmartZone. Establishing a satellite SmartZone along with a statefunded Gatekeeper (a business expert who advises tech startups) creates more opportunities for our county. Having this program in place is no small deal; it makes Lenawee a serious contender in being a small town startup hub, especially with our proximity to Ann Arbor and Detroit.

Lenawee Now plays a critical role in bringing together the elements of an entrepreneurial community. As an organization, it is able to weave together local, regional and state resources in a way no one else can.

On the surface, the community sees new business come online and existing businesses grow. What we know from behind the scenes is that it strengthens the backbone of our community by making it more attractive to talent. If we cannot be a desirable place for talent, we will not be a desirable place for business.

One message we repeatedly heard in 2016: talent is the number one issue across the nation. What we also heard was plenty of proof Lenawee County has an advantage with its collaborative business and education communities. We are proud to stand out among our peers as being open and proactive about the talent issue. It’s not something easily solved; it will take a shift in our entire way of thinking.

Lenawee Now has been leading the conversation on the matter, but it is truly the educators and employers of the area who are making way for the upcoming talent in all industries. We appreciate that these groups are receptive to the economic development messages we are passing on to them and are willing to work with us. Together we can sustain a healthy community and make it a viable option for our young people to stay after graduation or to return to raise a family.

Connecting with younger generations doesn’t happen on a whim. It takes continuous effort and accessibility to build awareness and trust. There are a growing number of programs that involve educators and employers such as job fairs, mock interviews, career exploration, and company tours. As we refine our collaboration, we are able to talk more and more about these under the umbrella of ALIGN, which is our countywide approach to building a comprehensive talent system.

Without such a system in place, success stories like the ones you will read in this annual report will become fewer and farther between. That said, our work has only just begun.

Yes, it’s a bit of a cycle and that is exactly why making Lenawee a place to explore new business concepts is important. We can wait for a business to locate in Lenawee and bring opportunity or we can create it ourselves. Look back at our history and you will see that we are creators, makers and innovators. As we move into 2017, I challenge you to join us in this movement through support and investment in Lenawee Now.

Moving into 2017, our goals remain the same: build talent by showcasing Lenawee’s wealth of opportunity and encouraging conversations among employers, educators, students, and parents.

Doug Kapnick

Jim Van Doren

Tim Robinson CEcD, EDFP

Chairman of the Board

Executive Director

Director of Operations

We thank you for your support in our journey thus far and invite you to join us in 2017.

LENAWEE NOW

OTTAWA LAKE RURAL RAIL

The Ottawa Lake Rural Rail Reconstruction and Extension project proposes $15 million to restore track from Riga to Ottawa Lake. Lenawee Now secured $40,000 in regional grants to commission a feasibility study that determined the economic impact of restoring the missing 8 miles of track. The study estimated that restoring the track will provide $500 million to $1 billion of additional economic activity to the area over the next 25 years. This data greatly improves the chances of receiving additional funding in 2017.

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SUCCESS

Expansions & Existing Businesses

INTEVA PRODUCTS

ERVIN INDUSTRIES

Inteva Products, a global Tier-1 automotive supplier with a manufacturing plant in Adrian, was approved for a $1.27 million incentive to support facility upgrades, while also providing an additional 127 jobs. This large investment was sparked by a substantial new instrument panel contract between Inteva and General Motors.

Ervin Industries was granted a tax abatement from the Tecumseh City Council to aid in the expansion of a 28,000 sq. ft., $2.2 million manufacturing and development facility, located in Tecumseh.

This success would not have been possible without the help of many organizations including the City of Adrian, Consumers Energy, Lenawee Now and the Michigan Economic Development Corporation. This project truly highlights the success of regional collaboration.

Ervin is a leading manufacturer in metal abrasives with a focus on highly technical metal powders, non-toxic shotgun shot and frangible bullets.

In addition to creating jobs in Lenawee County, this expansion will support the development of new products from the company.

PROMEDICA

STRONGBACK

ProMedica invests in the future of healthcare with plans to build a new 280,000 sq. ft. hospital on M-52 north of Adrian.

The facility will be equipped with an emergency department, surgical capabilities, a cancer center, a women’s health center, and a pain management clinic. This new construction will replace ProMedica Bixby and Herrick hospitals, providing centralized access for more dynamic care in the community.

Construction is scheduled to begin in the fall of 2017, taking up to two years to complete.

Strongback Properties, LLC, a Michigan company created

by Steve Hickman and Doug Kapnick, is working on a major project to restore historic downtown Adrian.

Additionally, ProMedica partnered with Adrian College and broke ground for a $2.2 million, 10,000 sq. ft. medical clinic that will benefit the campus and the community. The clinic will be completed in 2017.

The company received over $3 million in state and local incentives to restore three adjacent properties. This project will result in several first floor commercial spaces and seventeen apartments on the second and third floors.

This highly visible property is scheduled for completion in the late summer of 2017.

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2016 AN N UAL RE P ORT

SUCCESS Training & Talent

SIENA HEIGHTS UNIVERSITY Siena Heights University will begin major improvement projects on campus including the renovation and expansion of the Spencer Performing Arts Center, the designing of a new campus quadrangle, and the relocation of a maintenance barn.

Plans have been made for upgrades to the women’s softball field which include a new outfield wall, improved bull pen and irrigation system, as well as new lighting and seats.

More improvements will be completed in St. Joseph Hall as well as to the softball field. The projects are scheduled for completion for the 2018 academic year.

HI-LEX, L&W & KIRCHHOFF (STTF) Michigan Works! Southeast is an organization that provides service and support to the region’s workforce development system.

Together with Lenawee Now it has assisted three companies in Lenawee County using the Skilled Trades Training Fund (STTF). The STTF supports businesses by training employees in new skills and assisting with job searches.

In 2016, $18 million was awarded to companies throughout Michigan, including Lenawee County companies Hi-Lex Controls, L&W Engineering and KIRCHHOFF. Michigan Works! Southeast coached Hi-Lex Controls on root cause analysis and problem solving to help day-to-day activities. L&W Engineering and KIRCHHOFF received help with robotic programming, troubleshooting and employee training.

ALIGN ALIGN, a collaboration between employers, educators, students and parents, is moving toward the goal of raising awareness of the variety of careers available in Lenawee County. The branding process concluded in 2016, which provided marketing and communications insights and best practices. The "ALIGN Playbook,” a guide to building a talent pipeline, will be published in April 2017.

ALIGN leaders met with officials from Workforce Intelligence Network to find that we have laid the perfect foundation for MI Bright Future, a web-based career mentoring program. MI Bright Future will launch in Lenawee schools in 2017.

Lenawee Now will continue to catalyze open communication between educators and employers to provide the best possible opportunities to upcoming the workforce.

LENAWEE NOW

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SUCCESS

Entrepreneurship & Start-ups Gatekeeper Lenawee Now and the Adrian/ Tecumseh SmartZone welcomed Gary Clemetson as Lenawee Now’s Manager of Business Acceleration in 2016. This position is funded by the Michigan Economic Development Corporation.

The Gatekeeper role helps Lenawee Now to better assist technological start-ups, entrepreneurial support organizations, education professionals and other community partners. This will result in further innovation-based business development.

As members of the SmartZone network, Lenawee Now is better positioned to leverage state resources to assist the county’s emerging technological companies.

The Business Acceleration team worked with eight tech companies throughout 2016 and has big plans for 2017.

CAMBRIDGE CHEESE COMPANY

The stove-top batches of cheese that began as just a fun idea blossomed into a successful business venture six years later. The ambitious Courtney and Justin Chamberlain turned an old grain elevator into a modern cheese processing plant. Cambridge Cheese Company opened the first week of December after two years of planning and construction.

Sales began growing immediately: in just two months, 11 stores and 2 restaurants were selling Cambridge Cheese curds. Cambridge Cheese Company not only purchases most of its supplies from within the county, but also represents a successful family-owned and operated business model.

HANDLER FUNERAL HOMES

First-time business owner, John Barnhart, is now heading Handler Funeral Homes, located in Tecumseh and Clinton. This company first opened in 1942, and has now passed through five generations of different families.

Lenawee Now leveraged its USDA loan program to assist with financing in conjunction with First Federal Bank.

This business has been a long-standing member of the community and provides a vital service for those who call Lenawee County home.

REVIVAL COMMONS

The Revival Commons project will restore 160,000 sq. ft. of existing architecture and construct new industrial, business and retail space. This $25 million, five-year plan will rehabilitate the former 55-acre Tecumseh Products site.

The complex, which is within walking distance of downtown Tecumseh, will include onsite parking interconnected by sidewalks, bike paths and green space. By putting underutilized property back to use it will promote economic growth and help bring jobs to the City of Tecumseh.

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2016 AN N UAL RE P ORT

557,460

ANNUAL INCOME

556,824

ANNUAL EXPENSES

2016 Awards

Lenawee Now was recognized with several marketing awards for its creative and marketing achievements in 2016.

The Mid-America Economic Development Council (MAEDC) presented Lenawee Now with two accolades at the 2016 Mid-America Competitiveness Conference & Site Selector Forum in Chicago. The “Lenawee Now Toolbox Infographic” ranked First Place in the Business Retention & Expansion category, which focused on small markets demonstrating specific initiatives to retain or expand existing industries.

Lenawee Now’s “Made in Lenawee” book was a finalist in the Marketing Program category, which was defined as a comprehensive program to promote a community or region. “Made in Lenawee” is a centennial anniversary publication that showcases the rich manufacturing history, legacy of innovation, and historical leadership of Lenawee County.

In the Michigan Economic Developers Association (MEDA) 2016 Marketing Materials Competition, Lenawee Now was awarded “Best Overall Marketing Strategy: Population 50,000-100,000” for its Toolbox Infographic. This was the third consecutive year the award was given to Lenawee Now.

LENAWEE NOW

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20122016

Financial Review

16.22

AV E R A GE J O B C R E AT I O N P E R PROJECT

876 2740 JOBS CRE ATED

locations are approximate

JOBS M A IN TA IN E D

174.18

RETURN ON IN V E S T M E N T

391,146,382 TOTA L P R I VAT E IN V E S T M E N T

BOARD OF DIRECTORS Douglas Kapnick Chair

Retired Business Executive, Kapnick Insurance Agency

Barb Mitzel Vice Chair

Jason Hess

Vice President, Krieghoff Lenawee Company

Dave Maxwell

Area Manager, Consumers Energy

Retired Business Executive, One Lenawee Chairman

Kathryn M. Mohr Secretary/Treasurer

Ken Prior

Attorney At Law, RCO Law

Dr. James Colman Not Pictured

President, Lenawee Christian Ministries

Vice President of Manufacturing, Ervin Industries, Inc.

Marybeth Shunck

John T. Elchert Not Pictured

Market Area President, First Federal Bank

Pat Farver

Regional Sales Manager, SVP, Old National Bank

Publisher, The Daily Telegram

President, Blissfield Manufacturing

Rick Gurdjian Not Pictured

President, Gurdjian Insurance Group

Joe Williams

Jeffery Wyatt Not Pictured President, Venchurs Global

Mark Haag

Julie Yaroch, D.O. Not Pictured

Douglas Kapnick DTE Energy Ervin Industries, Inc. First Federal Bank Frank & Shirley S. Dick Endowment Fund Gleaner Life Insurance Society, Inc. GLOV Enterprises GreenStone Farm Credit Services Greg Bell Chevrolet Gross, Puckey, Gruel & Roof, P.C. Gurdjian Insurance Group, Inc. HMI Hardwoods, LLC HB Steele Iott Insurance Agency - Blissfield ITC Holdings Jackson College Kapnick Insurance Group Kiwanis of Adrian Krieghoff Lenawee Company Lenawee Christian Ministries Lenawee County Lenawee Intermediate School District MASCO Corporation Michigan Economic Development Corporation Meredith A. Francis, CPA

Michigan Works! Southeast Michigan International Speedway Midwest Energy Cooperative Milk Source, LLC Monroe Bank and Trust Old National Bank OmniSource Corporation Primore, Inc ProMedica Health Systems RCO Law Region 2 Planning Commission RIMA Manufacturing Company Rowley Inc. Rudolph/Libbe Companies Sage Foundation Schmidt & Sons Pharmacy Siena Heights University Spectrum Printers The Daily Telegram The Taylor Agency TLC Community Credit Union Uckele Health & Nutrition Venchurs Global Village of Blissfield Village of Clinton Wacker Chemical Corporation

Superintendent, Lenawee Intermediate School District

STAFF Jim Van Doren Executive Director Tim Robinson Director of Operations Kimberly Fryman Office Manager Sarah Stanley Marketing Director Alexandra Bourget Creative Director Randy Yagiela Development Erica Keene Marketing Assistant 2016 Marketing Interns

Aaron Rosen, Alana Courier, Dugan Darnell, Vincent Jelsomeno, Jazmine Brown, Julia Brooks, Joslyn Hatfield, Carly Tillotson, & Joe Andreoli

President, ProMedica Bixby and Herrick Hospitals

INVESTORS Adrian Animal Clinic Adrian Blissfield Railroad Adrian College Adrian Image Center Adrian Insurance Agency Adrian Mall/Tabani Group Adrian Mechanical Services Adrian Steel Anderson Development Company Avery Oil & Propane, Inc. Blissfield Manufacturing Co. Brazeway, Inc. Charter Township of Adrian Charter Township of Madison Citizens Gas and Fuel Company City of Adrian City of Hudson City of Morenci City of Tecumseh Clift Buick GMC Clinton Township Commissioner John Driskill Consumers Energy County National Bank Dailey Engineering, Inc. Dempsey & Dempsey, P.C.

 5285 W. US-223, Suite A Adrian, MI 49921

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517-265-5141

 info@LenaweeNow.org  LenaweeNow.org  Company/LenaweeNow  LenaweeNow  @LenaweeNow