Natalie Burg, Development News EditorWednesday, March 13, 2013

Source: Reigis Recchia, Arbor One Mortgage Group

When Reigis Recchia and his two partners were looking for a location to open their new mortgage group, they chose an office at 2800 S. State St. because of the space's ability to expand with the business.

It turns out, that was a good idea. Its first week of business, Arbor One Mortgage Group nearly doubled their staff from four to seven employees, and according to Recchia, they're just getting started.

"We're already looking to hire four to seven more people," he says.

Arbor One Mortgage Group is a new organization affiliated with Sterling Heights-based Mortgage 1. According to Recchia, the goal of Arbor One Mortgage is to connect mortgage experts who know the local real estate market with customers. Though the firm is growing quickly, Arbor One Mortgage is selective in its hiring, only employing those with at least five years experience in the mortgage industry, something Recchia says is rare in the field.

"When you're dealing with a more experienced staff, you're able to make the transaction a lot smoother," he says, also emphasizing the group's advantage of being local to Washtenaw County. "Our underwriters are very familiar with what's going on in this area."

The 2,000 square foot office opened on March 1, and has the ability to expand another 10,000 square feet throughout the building.

Source: Reigis Recchia, Arbor One Mortgage Group Writer: Natalie Burg

Entrepreneurship

Eclectic retailer Shine to open in Fourth Ave. storefront

Natalie Burg, Development News EditorWednesday, March 13, 2013

Source: Kelly Hadin, Shine

Kelly Hadin is a retail manager with a vision.

"It's a one-stop shop," she says. "We have free gift wrapping so you can walk in and say, 'I'm going to a wedding. What do I do?' You can come in an get an awesome gift for 15 or 20 dollars, or a piece of artisan pottery for a 100."

That vision is coming to Downtown Ann Arbor this month with Shine, a unique retailer of gift items based in Royal Oak. The new location on S. Fourth Ave. will be the second Shine shop.

"There is a great variety in this downtown," says Hadin. "My store has so much variety and color an energy, I feel like it is a reflection of how unique and varied Ann Arbor is."

Shine offers an eclectic mix of handmade and artisanal items, from local to international artists. Hadin says the Fourth Ave. space was perfect for the store, as its historic features create a beautiful backdrop for their products.

"I love the energy," Hadin says. "I feel like it'll showcase the colors really well, but it has its own texture and history."

Hadin plans to be open by March 23, when the store will celebrate its grand opening. In addition to Hadin, Shine will open with one full- and one part-time employee.

Source: Kelly Hadin, Shine Writer: Natalie Burg

Arts and Culture

Hail Hookah Lounge coming to former Firefly Club location

Natalie Burg, Development News EditorWednesday, March 13, 2013

Source: Bernard Arabo, Hail Hookah

A new option for entertainment and relaxation is coming to S. Main with the Hail Hookah Lounge. Under development by hookah enthusiasts Bernard Arabo, John Saroki and Marius Essak, the 4,000 square foot lounge is slated to open in the former Firefly Club location in about six weeks.

"When we would to go to the games during football season, we'd walk by it every day," Arabo says of the building. "We decided being between the stadium and campus, it was a good location."

The partners are now working to renovate the space from floor to ceiling. Arabo says the lounge will be the only one of its kind in the area with up to 16 seating area and a television for each.

"It's cozy and home-like," says Arabo. "You can just relax and hang out with your friends."

Arabo, who also owns Wireless Toyz in Downtown Ann Arbor, hopes Hail Hookah will attract a diverse crowd, including students, business people, cigar smokers and more. The lounge will offer coffee and espresso, and employ between eight and ten workers.

Source: Bernard Arabo, Hail Hookah Writer: Natalie Burg

Economic Development

Gold Star Mortgage grows into old Borders HQ, expects to hire 250 in 2013

Wednesday, March 13, 2013

Source: Concentrate

Gold Star Mortgage Financial Group plans to move into the former headquarters for Borders in Ann Arbor this spring. The Ann Arbor-based firm is more than doubling its space to 70,000 square feet, which should allow the company to continue its rapid expansion. Gold Star Mortgage Financial Group has hired 100 people in Ann Arbor over the last year, expanding its workforce to 300 people at its current headquarters. The company is growing so fast it projects to hire another 250 in 2013. "I wouldn't be surprised if we add 300 people," says Rick Richter, executive vice president of Gold Star Mortgage Financial Group. He adds that his company is at least "adding about 30 people a month" and looks to leverage the region's deep talent pool of young people. Gold Star Mortgage Financial Group is a full-service mortgage business that closes more than $1.5 billion in loans per year. It has focused on growing its presences in southeast Michigan and across the state to continue its organic growth. The 10-year-old company has doubled its growth over the last year thanks largely to expanding its local staff. "We kept bringing on new people, run them through our training program and they have enjoyed a lot of success," Richter says. Source: Rick Richter, executive vice president of Gold Star Mortgage Financial Group Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

Gema Diagnostics set to close on $2M Series B round

Wednesday, March 13, 2013

Source: Concentrate

Gema Diagnostics recently landed an investment from the Pure Michigan Venture Match Fund, which is part of a $2 million Series B round of venture capital the bio-tech start-up expects to close on later this month. Gema Diagnostics raised $625,000 in a Series A round when it launched in 2006, licensing technology from Michigan State and Yale universities. Its most recent round of seed capital comes from North Coast Technology Investors (which led the round), the First Step Fund and the Blue Water Angels. "It will be for a pivotal clinical trial to get the company's product to market," says Dave Repp, president & COO of Gema Diagnostics. Gema Diagnostics is developing technology that will help improve the odds of a successful in vitro fertilization. "Our tool will help clinicians figure out which of a woman's eggs is the best to fertilize," Repp says. "No other non-invasive technology can do that." Repp expects the final clinical trial to take six months and wrap up later this year, which should prompt the two-person start-up to expand its staff. Commercialization could begin by the end of the year. Source: Dave Repp, president & COO of Gema Diagnostics Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

AppKey focuses on advertising in mobile space

Wednesday, March 13, 2013

Source: Concentrate

Jim Vitek has a theory about smart phone users. He believes they will opt in for advertising if they receive high-end content for free. He believe in it so much that he launched his own start-up, AppKey, out of Ann Arbor's Tech Brewery to take advantage of the market opportunity. The start-up has created a new advertising channel to fix return on investment for advertisers. One year into the experiment and AppKey boast 8,000 users. "We have validated that the original concept works with paying customers," Vitek says. "We are evolving so we can shift into second gear." AppKey runs on a team of three people and the occasional intern. That team is currently working to ramp up the number and size of its advertisers and user base. Vitek expects to hit more than 1 million users within a year. He also expects to grow his staff from the company's office in the Tech Brewery. "I was always very impressed with the diversity of talent in the tech brewery," Vitek says. "It also has an entrepreneurial attitude that is consistent with my ambitions." Source: Jim Vitek, founder & CEO of AppKey Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Healthy Communities

Therapy Charts leverages microloan to grow business

Wednesday, March 13, 2013

Source: Concentrate

Therapy Charts recently received a microloan from the Michigan Microloan Fund Program and is using that cash to grow the fledgling firm and expand its staff. The Michigan Microloan Fund Program, managed by Ann Arbor SPARK, makes five-figure loans to growing companies in the Great Lakes State. It has loaned more than $2.3 million to 55 companies since its founding in July, 2009. Therapy Charts used its microloan to grow the company by implementing an Internet marketing plan and hiring a chief operating officer. "Our membership has almosty tripled in the last year," says Lisa Farmer, co-founder of Therapy Charts. Therapy Charts sells a patient information management software platform for mental health professionals. The software helps these clinicians provide treatment plans to their patients. It is also preparing to launch another product later this month that will give treatment providers homework plans for their patients. "Having the reaffirmation of what happens in the sessions helps them decrease the session count and decrease the chances of relapse," Farmer says. The 5-year-old company currently has a staff of seven employees and two interns at its home base in downtown Ann Arbor. It has hired one person over the last year and expects to continue growing at an accelerated pace in 2013. Source: Lisa Farmer, co-founder of Therapy Charts Writer: Jon Zemke

Entrepreneurship

Recraft's tech aims to monetize brewery waste water

Wednesday, March 13, 2013

Source: Concentrate

A small group of University of Michigan students/recent grads believe they can take what breweries throw away and turn it into a valuable commodity. Recraft is developing technology that takes the nutrient rich water discharge from breweries, cleans it, uses the byproduct for nutrient supplements. "We are a water reuse product company," says Eric Hsieh, co-founder & CEO of Recraft. We reuse the brewery water for other purposes. Brewery waste water is biodegradable but so nutrient rich that it requires more energy to clean it. That means breweries have to pay higher municipal fees to facilitate the discharge of the nutrient-rich water into the a municipality's sewer system. Recraft takes that waste water, mixes it with specific strains of algae which, naturally pull out the problem nutrients and clean the water. The nutrient-rich algae is then used in things like bio-diesel. It used this technology to compete in the recent Michigan Clean Energy Venture Challenge. Recraft is four months old and is working on setting up a wet lab this summer and begin testing the technology. "We're looking at a pilot run after the summer," Hsieh says. Source: Eric Hsieh, co-founder & CEO of Recraft Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Entrepreneurship

U-M opens Michigan I-Corps to all comers entrepreneurial

Wednesday, March 13, 2013

Source: Concentrate

The University of Michigan has worked for years to commercialize its research into growing businesses, employing a variety of programs that often look to pair university researchers with university business students and graduates. Michigan I-Corps is looking to broaden that scope. The new entrepreneurial training program, part of the National Science Foundation's National I-Corps initiative, is looking to not only empower the entrepreneurial ambitions of university's research and business classes but also entrepreneurs and scientists from outside of Ann Arbor's ivory towers. Any Michigan-based technologist, regardless of academic affiliation or funding source, is eligible. The program is recruiting teams from Michigan's universities, tech companies and startups funded by venture capitalists. "One of the best ways to enhance entrepreneurship is to get all sorts of folks to mix together," says Jonathan Fay, director of Michigan I-Corps. The Michigan I-Corps will be comprised of approximately 25 teams, each with three members: a principal investigator (or senior executive), entrepreneurial lead (or product manager) and industry mentor. The statewide program will focus on customer discovery and business model generation, but will supplement it with modules on business basics, intellectual property, and entrepreneurship ownership and operations. "What about your technology has value?" Fay says. "What about your technology do the customers want?" Source: Jonathan Fay, director of Michigan I-Corps Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Video

Community Development

826Michigan: Harnessing Robot & Volunteer Power

Roger RayleWednesday, March 6, 2013

Last week, Concentrate's speaker event asked 826Michigan's executive director Amanda Uhle how her organization attracts and activates so many volunteers and what a robot repair store has to do with teaching kids to write. If you missed the event you can still learn the answers in our video.

Feature Story

L to R Carl Pelofsky, Bob Ause, Lisa Ortiz and Mark Randolph

Arts and Culture

On Many Questions, Ethics Hangs in the Balance

Tanya MuzumdarWednesday, March 6, 2013

Last month, A2 Ethics held their third annual Big Ethical Question Slam. Concentrate's Tanya Muzumdar talks with the winners about the community's questions, the team's answers and what strategies are involved when a competition asks you to tackle the weightiest of issues.

Partner Content

Dreaming of owning a Michigan home?

MSHDAWednesday, March 6, 2013

With low mortgage rates and many houses to choose from, there’s never been a better time for state residents to buy their own home.

Economic Development

U-M lands $7.5M medical discovery fund

Wednesday, March 6, 2013

Source: The Detroit News

U-M docs and researchers are constantly making new discoveries and innovations. But is there a way to help monetize some of them? The Michigan Translational Research and Commercialization says yes.

Excerpt:

"A new $7.5 million fund aims to help University of Michigan medical discoveries move from the laboratory to the market.

The Ann Arbor school says Monday the effort will help its Medical School and its Office of Technology Transfer identify and advance medical research projects with a high potential of commercial success."

Read the rest here.

Technology and Innovation

Ann Arbor's Duo Security shows Google login vulnerability

Wednesday, March 6, 2013

Source: Duo Security

What do bears and snakepits have to do with your gmail account? They illustrate how the less-than best laid traps often fail. An Ann Arbor software firm shows how hackers get into your account and wreak havoc.

Excerpt:

"Some months ago, we found a way to (ab)use ASPs to gain full control over Google accounts, completely circumventing Google’s 2-step verification process. We communicated our findings to Google’s security team, and recently heard back from them that they had implemented some changes to mitigate the most serious of the threats we’d uncovered. Here’s what we found:"

Read the rest here.

Entrepreneurship

Chelsea record collector launches online store

Wednesday, March 6, 2013

Source: DexterPatch

Vinyl records prove the Peter Allen song true: "Everything old is new again". Though LPs represent less than one precent of the recorded music business, a Chelsea collector sees good potential for a return on his investment.

Excerpt:

"Branham, a longtime resident of Chelsea, has been collecting records since the 1970s. When he's not fulfilling his duties to Sylvan Township as township treasurer, he travels around the state "picking" through estate sales and personal collections, on the prowl for rare discs by obscure bands like The Kegs and The Phantom 5."

Read the rest here.

Arts and Culture

Envy Alert: The ultimate outdoor home theater is in Ann Arbor

Wednesday, March 6, 2013

Source: Houzz

Envy is actually too watered-down a word to describe Concentrate's feelings about this $50k+ outdoor home theater set-up.

Excerpt:

"A projector inside designed for both day and night viewing shoots the picture onto the back of a 9-foot-wide glass screen. Small speakers are strategically placed to distribute the sound evenly to the seating areas only, so that any neighbors beyond the large lot aren't disturbed."

Read (and drool over) the rest here.

Arts and Culture

Sava-style tapas coming to E. Washington storefront

Natalie Burg, Development News EditorWednesday, March 6, 2013

Source: Sava Lelcaj, babo market

Considering the rush of new restaurants opening in Downtown Ann Arbor, it may seem that there's one of every genre to choose from now. Not yet, says foodie entrepreneur Sava Lelcaj.

"We just don't have anything around here that is true tapas style," says Lelcaj. "We have Isalita, but I'm thinking more Mediterranean or European-style. Those are my roots, and I felt that was really good move for us right now."

Lelcaj is currently working to remedy that void, as she develops her newest venture, a yet-unnamed tapas restaurant on E. Washington. While she has been quietly planning the eatery for some time, having recently purchased the building at 216 E. Washington, the pending departure of the Mahek Indian restaurant next door has allowed the owner of Sava's and babo market to triple the size of her vision.

"It's actually three narrow buildings coming together to make this project happen," Lelcaj says. "It's one of the most beautiful streets in town. There is all of this beautiful architecture here."

The combined 6,000 square foot space will include between 200 to 250 seats between open dining and private rooms, as well as a basement kitchen and upstairs offices.

Many of the details, including the name, décor and menu items are still under consideration, and Lelcaj says a research trip to Spain this summer will help inform some of those decisions. One menu items she does anticipate serving is the flaming Greek cheese appetizer, saganaki.

"My brother said that if you're going to do a Mediterranean restaurant you have to do saganaki," says Lelcaj. "We like to have fun, and that's one menu idea we're excited about that is more tongue in cheek."

Lelcaj plans to open the restaurant this coming falls. She anticipates hiring a staff of 50 to 60 employees.

Source: Sava Lelcaj, babo market Writer: Natalie Burg, Development News Editor

Entrepreneurship

Mid-Michigan physical therapy concept expands to Ann Arbor

Natalie Burg, Development News EditorWednesday, March 6, 2013

Source: A.J. Grzesiak, Renue Physical Therapy

Renue Physical Therapy began in 2011 in when Tony Klapish noticed a pattern among physical therapy practices he didn't like. Rather than bouncing clients between multiple therapists and assistants on each visit, he founded Mid-Michigan-based Renue Physical Therapy, which promises patients one licensed physical therapist throughout their treatment.

The concept caught on. Renue's fourth office, and first outside of the Tri-Cities, opened on S. Main in Ann Arbor in mid-January.

"We decided on Ann Arbor because we thought it was a good fit," says A.J. Grzesiak, managing partner of the Ann Arbor Renue office. "It's a competitive market for sure, but it's a great area for healthcare. We're hoping to contribute to the quality here."

The 2,300 square foot location includes open gym space, a clinical area and private treatment rooms. The convenient location of the office at the corner of S. Main and Ann Arbor-Saline Rd. was a major factor in the decision to locate there.

"Convenience is big for therapy, because clients are typically going two to three times per week for quite awhile," says Grzesiak.

The new clinic currently employs a staff of three, and Grzesiak hopes to add another physical therapist over the next six months, and to grow to a three-therapist office within two years. He also hopes to grow Renue's community involvement.

"We want to become part of the community," he says. "It's important to us to be a place where people want to come."

Source: A.J. Grzesiak, Renue Physical Therapy Writer: Natalie Burg, Development News Editor

Economic Development

Ypsi DDA to invest up to $30K in building rehab assistance

Natalie Burg, Development News EditorWednesday, March 6, 2013

Source: Tim Colbeck, Ypsilanti DDA

Renovating a historic commercial building is no easy task, but the Ypsilanti Downtown Development Authority (YDDA) is working to make it more manageable to do so in their district. The organization has recently announced that $30,000 will be made available through their YDDA Building Rehabilitation Program.

"This is an opportunity for a businesses to expand or come into a space or to leverage funds to increase their property value," says YDDA Director Tim Colbeck.

The funds are eligible to cover up to 50 percent of the cost to rehabilitate buildings within the YDDA district. Qualifying projects include ADA accessibility construction, fire suppression upgrades, or other tasks involved in bringing buildings up to code inside the YDDA district, which includes properties in downtown, Depot Town and the W. Cross St. District.

"It's not for a coat of paint," says Colbeck. "It has to be something that will take a building that is in a state of disrepair and bring it up to code. It's not just cosmetic stuff in the interior."

The YDDA Building Rehabilitation Program is now in its fourth round of grants. This round will differ from the prior three in that, rather than accepting applications until a particular deadline, grants will be awarded on a rolling basis. The $30,000 available through the program is funded by the YDDA and the Washtenaw County Economic Development & Energy Department. Applications are available on the YDDA's website.

Source: Tim Colbeck, Ypsilanti DDA Writer: Natalie Burg, Development News Editor

Economic Development

Pizzeria Biga to bring healthy dining, dozens of jobs to Washtenaw Ave.

Natalie Burg, Development News EditorWednesday, March 6, 2013

Source: Jeff Jepko, Pizzeria Biga

In word association games, it's unlikely that many people connect the terms "pizza" and "healthy." But according to Senior Manager for the Metro Detroit-based Pizzeria Biga restaurants Jeff Jepko, those two words both describe the Italian eatery coming to Arbor Hills Crossing.

"We didn't set out to be a healthy restaurant," says Jepko. "It just happens to be that the food in Southern Italy is better for you."

Like its soon-to-be neighbor, the forthcoming restaurant from the owners of Café Zola, the Pizzeria Biga location is still awaiting construction on Arbor Hills Crossing to finish up before beginning their build out on the Washtenaw Ave. space.

What sets the pizzeria apart from other restaurants in the area, says Jepko, is their unique combination of pre-fermented dough and a 100 percent wood-fired oven.

"We use all natural biga leavening," says Jepko. "It's commercial yeast free, so it has a better bite, and it's a little bit better for you. Not very many people use it because it's very labor intensive."

The extra work has proven to be worthwhile for Pizzeria Biga, which now has locations in Royal Oak and Southfield. The restaurants first opened in 2010 following the success of Chef Luciano Del Signore's fine dining restaurant, Bacco Ristorante in Southfield.

Jepko says Signore was drawn to the Ann Arbor market because of the area's food consciousness. Pizzeria Biga will feature local ingredients in their menu items, as well as beer selection. The restaurant will also have a focus on craft cocktails.

Late August is currently the target date for opening. Jepko expects Pizzeria Biga to employ between 30 and 50 workers.

Source: Jeff Jepko, Pizzeria Biga Writer: Natalie Burg, Development News Editor

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Hasini and Harshini Anand are members of Corner Health Center's Youth Leadership Council and mental health advocates.

Voices of Youth

Concentrate's Voices of Youth series features content created by Washtenaw County youth in partnership with Concentrate mentors, as well as feature stories by adult writers that examine issues of importance to local youth. Click here for a full list of the latest content from this series.