Economic Development

Coverage of projects, big and small, and the people who create them, which promote the economic health of a community, including manufacturing, retail, office, and hospitality developments.

Zingerman’s Seeds Entrepreneurship

It's no surprise that Zingerman's breeds a love of food in its staff, but entrepreneurship? Julianne Mattera talks to a trio of former employees who have taken what they've learned from Ann Arbor's beloved deli and turned it into successful businesses across the country.

Latest in Economic Development
Metro Detroit By the Book

University presses have found a unique niche in the publishing world, producing books by local writers with a decidedly local focus. Dennis Archambault looks at how Wayne State and U-M are evolving their imprints in the age of shrinking higher ed funding and digital innovation.

Madonna U building upgrades to LEED gold

Madonna University officials were hoping its new Franciscan Center building would be silver LEED certified, so when it was awarded gold status last month, it made the designation that much more, well, golden.The building, home to the university's science and media studies, opened in time for fall classes last year. It’s the first new building on campus in four decades, offering classrooms, offices, audio and television studies, a cafe, and a student gathering area in its 65,000 square feet.The 4,500-student university was sure it had earned silver Leadership in Energy and Environmental Design certification, but last month brought home the gold from the Green Building Certification Institute, making it the first in Livonia. Madonna University President Sr. Rose Marie Kujawa says that because they’d never done a LEED-certified building before, they wanted to set a goal that was reasonable, and shot for silver status."We worked very diligently to earn every point that we could, only to find out we were just two or three points away from gold," she says.And because the point system determining LEED level -- certified, silver, gold, and platinum -- is ever-evolving, they took a closer look at anything additional that could be done to earn an extra point or two, such as using green maintenance products or managing the building's energy in a particular way. The $20 million invested in the building’s environmentally friendly features resulted in recycled carpeting, natural lighting, motion-detecting lights, low-flow plumbing, and cork and bamboo floors.Not only is the recognition to the university’s planning and commitment, but it also speaks to its Franciscan values as a Catholic university. Plus, the building looks nice, too. Sr. Kujawa says those involved the planning process didn’t think a green building had to look like a factory, and the architects successfully designed it around the campus’ pond, using a lot of natural light."Everyone who's heard about it is thrilled," she says. "It's not just good for Madonna University, it's good for the environment, city, everyone associated with city, everyone associated with green building concepts. We're very happy."Source: Sr. Rose Marie Kujawa, president of Madonna UniversityWriter: Kristin Lukowski

Mt Clemens welcomes five new businesses

Sure, having a business downtown is good for visibility and traffic, but it also gives owners the chance to be a part of a community.So says Arthur Mullen, executive director of the Mt. Clemens Downtown Development Authority, as to one of the reasons five new businesses have moved into downtown spaces recently. "I think a lot of businesses are choosing downtowns because they’re not alone," he says. "Fellow businesses owners are working together to help each other."Since the beginning of the month, five new businesses have joined the restaurant, retail and office space downtown: Bodhi Seed Yoga & Wellness Studio, the MINDs Eye Bookstore, marketing firm Hunch Free, TGM Skateboards, and Handbags of Hope."I think that they're looking for a good location to invest, and they think Mt. Clemens is that good location," Mullen says. "We're always excited when someone is willing to try their idea in Mt. Clemens. They chose us for a reason."Source: Arthur Mullen, executive director of the Mt. Clemens Downtown Development AuthorityWriter: Kristin Lukowski

Inkster, Ypsilanti, Detroit, I-275 trail score pedestrian grants

It's all about the infrastructure. Not only will Inkster build a streetscape project and Detroit a walk/bike path, but because of state and federal grant money, portions of the I-275 Metro Trail will be also be reconstructed. Ypsi even got a slice of the community improvement pie.The Michigan Department of Transportation announced the projects Tuesday, for which Inkster will receive almost $600,000 in state and federal funding for a planned streetscape project. The intersection of Michigan Avenue (US-12) and Inkster Road will be improved about a block in all four directions, with decorative brick pillars, fencing, benches, decorate stamped concrete, and landscaping.Kimberly Faison, special projects manager for the city of Inkster, says the project will help to define the city’s downtown, at that intersection, with an emphasis on trees, shrubs and perennials. And with traffic whizzing by on Michigan Avenue, "Sometimes our downtown gets missed, especially with the speed," she says. "Our residents have a lot of pride in the community."The city has also acquired three easements in that area, which will be made into a green space, which will include seating areas. Improvements done last year, including ramps and cross lights at pedestrian intersections, make the area more walkable, she says, while the streetscape is also expected to help calm traffic. Bus shelters are also a part of the expanded project, and the city hopes to receive future funding for a greenways project down the line.Faison says Inkster's residents know the city has businesses worth visiting and space worthy of being rehabilitated and reoccupied, and this will help put them on the map. "The project really is exciting for us," she says. "We see this as a shot in the arm."Elsewhere in the metro area, Detroit will get funding for a nearly 1-mile portion of the Connor Creek Greenway, to include a bike/walk path, seating areas and trees. Eighty percent of the $358,376 will be covered by federal funds, with the rest made up by a match from the city.Portions of the I-275 Metro Trail, in Canton Township, Van Buren Township, and Romulus, will also be rehabilitated, including the addition of a boardwalk over wetlands and signage. That project is nearly $4 million, covered by federal and state funding.Finally, Ypsilanti also received a grant for streetscape projects. Statewide, a total of $10 million was awarded to 11 counties for non-motorized trail improvements, roadway streetscape, parks and water quality.Source: Kimberly Faison, special projects manager, city of Inkster; Michigan Department of TransportationWriter: Kristin Lukowski

Basco rehabs downtown Ferndale building

A crumbling facade and rotting steel didn't stop Roger and Sergio Basmajian from renovating a building in downtown Ferndale.320 W. Nine Mile Road is almost ready to be occupied, barring some minor work and paperwork, by Painting with a Twist, a kind of self-serve painting studio. Redeveloper Roger Basmajian says although he had some unexpected rebuilds instead of repairs, the improvements, including the facade, brick, windows and awning, had a good end result."We did a whole new facade for that building," he says. "At the end of the day it was just not in good shape."His company, Basco of Michigan has redeveloped a handful of properties in the Ferndale and Royal Oak area, knew what they were dealing with when they began work on that two-story, 7,800 square-foot building in downtown Ferndale."The steel in the back was all rusted from years of neglect, and that’s why we tore everything down," he says. But, "We were determined to make it work."Source: Roger Basmajian, co-owner of Basco of MichiganWriter: Kristin Lukowski

BBCetc helps SE Michigan start-ups attract millions in seed capital

The people at BBC Entrepreneurial Training Corp like to use the words "Return On Investment" or ROI, which makes sense for a company that specializes in helping entrepreneurs and start-ups secure seed capital.The Ann Arbor firm's latest example is the 20 times ROI it is claiming the state has enjoyed through BBCetc's services. The company received funding from the state's 21st Century Jobs Fund to help early stage technology companies write applications for things like government grants. The end result so far has been $80 million in non-diluted funding (meaning the entrepreneurs didn't have sell part of the company for the cash) to 150 companies in the state since 2002 as part of the Statewide SBIR/STTR Consulting Services Program.One of the local companies that received this help was NeuroNexus Technologies. The Ann Arbor-based firm used BBC etc's training and consulting to land federal grant funding. "That money helps them develop the next generation of their products," says Lisa Kurek, managing partner of BBC etc.Other companies that have utilized BBC etc's services, which employs half a dozen people and about as many consulting partners, include Compendia Biosciences, T/J Technologies, NanoVir. The last is a start-up founded by ex-Pfizer scientists."They're moving quite rapidly down the development pipeline and are ready to secure their next round of funding," Kurek says.Source: Lisa Kurek, managing partner of BBC Entrepreneurial Training CorpWriter: Jon Zemke

Pontiac’s RazorThreat adds clients, staff

Greg Guidice isn't afraid of the rise in Internet crime. In fact he sees it as an opportunity. Of course, it helps that he is CEO of a computer security firm – RazorThreat."The cyber crime industry is larger than the illegal drug industry," Guidance says. "It's a $900 billion a year industry. In 2008, the private sector lost $1 trillion to cyber crime."Which is turning into a window of opportunity for the downtown Pontiac-based firm that only opens wider. The 4-year-old company started with three people and now employs five with an occasional independent contractor. More hires could be on hand in the next year as it continues to grow.RazorThreat has focused on expanding its revenues and profit margins, partly by attracting more public sector clients. It's now looking to partner with more technology firms, such as reseller who can distribute its product."We're also looking for strategic partners where our products are complimentary," Guidice says.Source: Greg Guidice, CEO of RazorThreatWriter: Jon Zemke

Biz accelerators, NEI team up for Accelerate Mich Innovation Comp

They're calling it the biggest business plan competition in the world. They are the Business Accelerator Network for Southeast Michigan - Automation Alley, Macomb-OU INCubator, TechTown and Ann Arbor SPARK. It is the Accelerate Michigan Innovation Competition. What's at stake is $1 million in cash and services for local start-ups."This is going to be a great opportunity for southeast Michigan companies to make a pitch for some big rewards," says Dave Spencer, executive director of the Macomb-OU INCubator.The competition take place around the Big Chill hockey game between the University of Michigan and Michigan State University at Michigan Stadium on Dec. 11. Organizers plans to use that game as a draw for out-of-state alumni with significant business acumen and deep pockets into the local entrepreneurial ecosystem. The plan is to introduce local entrepreneurs and start-ups to these venture capitalists, angel investors and executive talent; highlight the local start-up scene and put a spotlight on entrepreneurial resources in the area, such as Automation Alley.The New Economy Initiative gave $750,000 to Ann Arbor SPARK to take the lead on the competition. It is open to start-ups and entrepreneurs from both inside and outside of the state that are willing to set up shop in Michigan. Those companies should be early-stage businesses and student concepts with long-term viability in the advanced materials, advanced transportation, alternative energy, homeland security and defense, information technology, life science, medical devices, next generation manufacturing and products and services sectors. Students attending any Michigan university or college can submit their business concepts in a separate category. For more information about the Accelerate Michigan Innovation competition, click here.Source: Dave Spencer, executive director of the Macomb-OU INCubatorWriter: Jon Zemke

Clawson-based serial entrepreneur finds success in fire extinguisher technology

Gerald Flood got into the fire extinguisher business about 20 years ago and has turned it into a entrepreneurial streak that keeps him swinging for the fences.When a friend's fire extinguisher business went under, Flood bought the technology. He turned that technology into a successful company then sold it. That became the inspiration for his next venture – FireXonline, which sells fire extinguishers for computer servers. FireXonline, which Flood still runs today, became the inspiration for yet another venture – OnGuard, which is developing a safety measure to prevent dryer fires."It's one thing that led into another and another," Flood says.FireXonline specializes in fire extinguishers for computer server racks. If the worst happens and an overheating server ignites it can be contained and extinguished in the rack, without disturbing other racks or equipment in the room. The 7-year-old company employs three people and is serving as the latest jump off for Flood's newest start-up OnGuard. OnGuard is developing a dryer accessory that sense when something like a lint fire is about to happen. When that mechanism has been tripped, OnGuard fills the space with water, extinguishing it. Flood plans to spend the rest of the year commercializing his new product and expects to hit $500,000 in sales in his first year, and $2-$3 million in sales in the next. If that happens he expects to grow his staff from one (himself) to up to 10 people."The potential in this dryer product is huge," Flood says.Source: Gerald Flood, founder of FireXonline and OnGuardWriter: Jon Zemke

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