Features

Detroit-based private-equity firm relies on U-M for hires

All discussions about Michigan's developing new economy include talent - where to get it, how to retain it, and what the next generation of professionals need. Huron Capital Partners (Michigan's largest private-equity firm) sees the University Of Michigan as an important pipeline for employees.
 
Excerpt:
 
"The 20-person firm now takes up most of the 27th floor of the Guardian Building. It's new hires are mostly investment professionals. A large quantity of them earned their MBAs locally.
 
"The University of Michigan is educating more of our team than any other school," says Michael Beauregard, senior partner at Huron Capital Partners."
 
Read the rest here.
 

Juicy Kitchen serves up healthy plates, 7 jobs in Ann Arbor

Juicy Kitchen, a healthy foods catering and delivery business, has moved from a back room into a new storefront café on Ann Arbor's west side. Since Juicy Kitchen opened its café at 1506 N. Maple Road in mid-January, "We have had an overwhelmingly positive response, from the neighborhood especially." says owner Susan Todoroff. "I worked from this hole-in-the-wall kitchen with no windows – all of a sudden I have big picture windows, sunlight, and people," Todoroff adds. Juicy Kitchen now fills the space formerly occupied by the Maple Gardens Chinese restaurant. All traces of the former tenant have vanished. Todoroff and her husband spent a few months on renovations. They installed wainscoting made from northern Michigan white pine and stained it peacock blue. The walls are painted a pumpkin orange, there's a new counter with galvanized steel coating, and school house-style lighting. Todoroff's husband built the dining tables. The cafe has seating for 16 people on Victorian church pews and auction-find chairs. Breakfast and lunch are served daily. After 2 p.m., customers may stop in and pick up prepared meals to go. Todoroff is continuing the catering and delivery operation as well. Baked goods are mostly vegan and emphasis whole grains and less sugar. High-quality foods, such as locally raised, hormone-free chicken and eggs, come out of the kitchen. Calder Dairy supplies the milk, and Mighty Good coffee is poured. Todoroff has seven employees, three of whom are full-time. Chef Dan Vernia is formerly of the Ravens Club. "There's nothing else like us in Ann Arbor, but especially on the west side," says Todoroff. "They don't have a place where they can sit down and have a really good healthy breakfast and a really good cup of coffee." Source: Susan Todoroff, owner, Juicy Kitchen Writer: Tanya Muzumdar

Shape Ypsi master planning launches new website, public outreach

A common criticism of government studies and plans is that after all the time and effort spent developing them, they are put into a binder and tucked into a shelf. With the recently launched "Shape Ypsilanti" website and social media campaign, the city of Ypsilanti intends to create a master planning process that defies such an outcome by being both active and flexible. 
 
The goal of a master plan is to establish a long-term vision for land use and development. The Shape Ypsilanti master planning process is a part of Washtenaw County’s Community Challenge Grant. The city will receive $180,000 to generate a master plan and zoning ordinance revisions. While the master plan itself garners most of the attention, the ordinance revisions are a major part of the project.
 
"We’re hoping to have the master plan drafted by this summer," says Ypsilanti City Planner Teresa Gillotti. "Then we switch gears and start revising our zoning ordinance. Then we'll have a little bit of muscle in the master plan."
 
According to Gillotti, building flexibility into the plan is the result a lesson the city learned after drastic changes to the economy altered the relevance of their 1998 master plan. Because no one can anticipate exactly what the future will hold, the Shape Ypsilanti process will include the unique feature of developing community values along with the land use vision. 
 
"We want to have consensus on our guiding principles, so when things change we still know where we’re going," says Gillotti. "Instead of saying, 'we can only do option A, B or C,' we can say, 'Does D fit our principles?' It’s a neat idea." 
 
The Shape Ypsilanti process launched Jan. 17 with an interactive website and social media. Public focus groups and charrettes will begin next month. Gillotti encourages members of the public to join in the planning process, and to visit the website for opportunities to get involved.
Source: Teresa Gillotti, Ypsilanti City Planner Writer: Natalie Burg

Tony Sacco's set for March opening in Cranbrook Village

A growing national chain with Michigan ties will be opening this March in the Cranbrook Village Shopping Center on Eisenhower Parkway. The 3,600 square foot Tony Sacco's Coal Oven Pizza will share a building with Potbelly Sandwich Shop, a move that franchise founder and East Lansing-native Chuck Senatore says will benefit the new restaurant, as well as others in the shopping center.
 
"There's a lot of synergy in that area," says Senatore. "The other restaurants are complementary, but not competing. We like being in busy area, typically with higher end tenants like Whole Foods." 
 
Though Tony Sacco's began in Florida, Senatore's Michigan roots have given his home state big role in the restaurant's early growth. The Ann Arbor location will be the third Tony Sacco's in the state, with locations in Grand Rapids and Traverse City forthcoming. Franchise-wide, the restaurant will be the eleventh or twelfth location, depending upon the opening date of a Charlotte, North Carolina branch. Twenty new Tony Sacco's locations are underway, and five additional franchise locations are in negotiation. 
 
"The nice thing is that the franchises are locally owned and operated," Sentore says. 
 
The secret to the restaurant's success, according to Senatore, has been the unique made-from-scratch cooking methods, as well as an economy that has many people seeking out franchise opportunities. 
 
"People right now are looking for looking to make their own careers," he says. "They are deciding they want to control their own destiny a little bit. This way, they can be their own boss."
 
The local owner of the Ann Arbor Tony Sacco's is Keith Gulian. The restaurant will feature a full bar and will employ approximately 30 workers.  Source: Chuck Senatore, franchise founder Writer: Natalie Burg
 

Ann Arbor public housing to get up to $20M upgrade

The process may be a bit complicated, but the end result will be better quality living spaces for public housing residents in Ann Arbor, including better energy efficiency and the use of green products to lower utility bills and reduce health issues. Earlier this month, the Ann Arbor Housing Commission (AAHC) moved closer to making these renovations with a U.S. Department of Housing and Urban Development (HUD) program known as RAD, or the rental assistance demonstration program by selecting Norstar Development USA as a private sector partner for the project.  
 
A 2009 Physical Needs Assessment determined that more than $40,000 in capital investment per unit is needed for AAHC units over the next 15 years. According to AAHC Executive Director Jennifer Hall, public housing residents won't be the only benefactors of the much-needed upgrades. 
 
"The City will benefit because it will support the local economy by providing $15 to $20 million in construction work, professional services and tenant jobs," she says. "The neighborhoods will benefit because these units will be an asset to the neighborhood once they are completely renovated."
 
In order to make the investment possible, the AAHC must first convert their operating subsidy source from a HUD public housing budget to a HUD project-based voucher budget. While this won't change the amount tenants pay for their housing, it will provide a more stable source of rent subsidies. 
 
"Public Housing is severely limited in the type of funding it can secure for capital improvements," she says, "and changing to project based vouchers will enable the Housing Commission to secure the funding it needs to maintain its units." 
 
Ultimately, that funding will come from the sale of Low Income Housing Tax Credits, through the Michigan State Housing Development Authority, which AAHC will earn, but will not need to use, as they are a tax-exempt organization. 
 
To complete the plan successfully, the AAHC must secure funding within one year and finish renovations within three years. 
Source: Jennifer Hall, AAHC Executive Director Writer: Natalie Burg

FarmLogs brings software to agriculture, scores $1M angel round

FarmLogs is bringing software and technology to a sector of the economy not know for early adoption - agriculture. The Ann Arbor-based start-up is creating online-based, farm-management software with an eye toward helping farmers make better business decisions. The idea was born in Silicon Valley, the brainchild of two Michigan ex-patriots, and first incubated at the famed Y Combinator a little more than a year ago. It found well-known investors on the West Coast and was poised to become the next posterchild for Silicon Valley start-ups when it did something unconventional. It moved back to Michigan. "We decided the right move for us was to move back to Michigan, right here in Ann Arbor," says Jesse Vollmar, CEO & co-founder of FarmLogs. Vollmar and Brad Koch grew up in a rural area in Michigan's thumb and received computer information degrees from Saginaw Valley State University in early 2012. They saw firsthand how farmers were keeping their records by hand and making important business decisions off gut feelings. There were few, if any, computers and even less analytical data. "They don't have the software tools to plan the business and manage their results," Vollmar says. "That's what we provide." Those tools organize the farmer's data, helps them create financial models, figure out how best to plant fields, and when to bring their crops to market and which market presents the best value. The bottom line is to help them maximize production, efficiency and profits. "We want to be thought of as the company that is leading innovation in agriculture," Vollmar says. That idea has help propel FarmLogs to raising a $1 million angel round. It now employs four people and is in the process of hiring two more now. It expects to bring on even more as it starts to accelerate its growth with Ann Arbor as its base. And the reason for relocating Ann Arbor were pretty self-evident for Vollmar and Koch. "Ann Arbor has a better start-up culture and vibe that we thought would be better for attracting talent," Vollmar says. Source: Jesse Vollmar, CEO & co-founder of FarmLogs Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Seelio secures $600K in seed capital, Menlo mentorship

Internet start-up Seelio has landed an investment from the Michigan Pre-Seed Capital Fund, which is part of a larger angel round worth slightly more than $600,000. The investment has allowed the downtown Ann Arbor-based company to expand its staff to 10 employees and two interns. It is now looking for strategic investors and has moved into the offices of Menlo Innovations, which is helping mentor the 1-year-old firm. "We're very proud to be based out of Ann Arbor," says Moses Lee, co-founder & CEO of Seelio. "We have a very good team that is committed to the state of Michigan." Seelio is developing a software platform that allows college students to showcase their portfolio of work. "We're able to document the entire story of a project and who you worked with," Lee says. The platform is currently being used in 800 college campus across the U.S., including the University of Texas, UCLA, MIT, Albion College, Eastern Michigan University, Wayne State University and the University of Michigan, among many others. Seelio plans to expand its geographic reach around the world with universities in Europe the next in line. "Some major universities are interested in this platform," Lee says. Source: Moses Lee, co-founder & CEO of Seelio Writer: Jon Zemke

Former ReCellular execs launch new start-up, stkr.it

A new start-up based in Ann Arbor, stkr.it, is helping people move memories trapped in old mobile technology to a format where they can be preserved for posterity. For instance, if a series of text messages about getting a new job have sentimental value, stkr.it allows them to be moved from the original phone and preserved when the old cell phone is replaced. "I found that young people were were saving their old cell phones that had old text message conversations," says Mike Newman, president of stkr.it. "They were meaningful and valuable. They didn't want to loose them." Mike Newman and his father, Chuck Newman, were previously executives with ReCellular, a Dexter-based cell phone recycler. ReCellular has been the largest recycler of cell phones for many years and often worked to find ways to get people to recycle old cell phones. Sentimental attachment to the information inside cell phones was one of the larger barriers to overcome. Mike Newman moved to New York City two years ago with his wife who took a job in finance. He started stkr.it not long after. Chuck Newman was one of the first investors and convinced Mike Newman (who splits time between New York and Ann Arbor) to move it back to Ann Arbor. "We had a strong desire to make this a Michigan company," Mike Newman says. Today, stkr.it is a little more than 1-year-old, employs five people (mostly in Ann Arbor) and is looking to add interns. It is expanding its product offerings to letting users move videos created on smart phones to greeting cards to create a personal touch. "With our technology you can add a video or a voice message," Mike Newman says. "That way it's much more personal and meaningful." Source: Mike Newman, president of stkr.it Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

U-M Dearborn, EMU biz grads open Indian restaurant, Curry Up

A group of friends who recently graduated with business degrees from local universities have come together to open their own restaurant in Ann Arbor. Curry Up bills itself as a restaurant that specializes in Indian street food. Swetang Patel, Hardik Patel and Rutul Patel launched Curry Up last summer at 2711 Plymouth Road after receiving business degrees from the University of Michigan-Dearborn and Eastern Michigan University. "Ann Arbor has always been a very young and welcoming to other foods and cultures," Swetang Patel says. "There really wasn't a place with the food we wanted around here." Curry Up now employs a dozen people and has just revamped its website to make it more interactive with its customers. Swetang Patel says he and his partners want to continue to build up the restaurant's brand and expand its delivery service. "I'd like to have a strong delivery service in Ann Arbor, especially to the hospitals," Swetang Patel says. "We would also like to highlight our vegan and gluten-free options." Source: Swetang Patel, co-owner of Curry Up Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Michigan Pre-Seed Capital Fund continues investment spree in '13

Michigan Pre-Seed Capital Fund has struck again, investing $1 million into four local start-ups. The four start-ups include Fusion Coolant SystemsLocal OrbitNew Eagle Products, and Seelio. Seelio, New Eagle Products and Local Orbit are based in Ann Arbor. Fusion Coolant Systems was launched in Ypsilanti and is now based in Detroit on the campus of Focus: HOPE. "The seeds that were planted several years ago are starting to bear fruit," says Skip Simms, senior vice president at Ann Arbor SPARK who oversees the Michigan Pre-Seed Capital Fund. "The ecosystem the state has created has really improved the quality of entrepreneur who is coming to us with better thought-out ideas and products that are further along." The Michigan Pre-Seed Capital Fund is a collaborative effort of Michigan's SmartZones to support product commercialization at local start-ups. It has awarded more than $19 million in seed funding to 83 Michigan companies. One of the early recipients was Compendia Bioscience, which was acquired by Life Technologies last fall. The Michigan Pre-Seed Capital Fund had its most aggressive year yet in 2012, making deals with 23 companies. Simms says he doesn't expect the fund to surpass that number again this year but there is more than enough demand from a plethora of quality companies. "It has been growing," Simms says. "It has been evolving. The good news is it has been evolving and snowballing in a good way." Source: Skip Simms, senior vice president at Ann Arbor SPARK Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor SPARK lands $1M to expand reach regionally

Ann Arbor SPARK has landed $1 million in funding from the Michigan Strategic Fund that will help the economic accelerator expand its reach across Washtenaw County. "This broadens the geography and the number of companies that we can serve," says Paul Krutko, president & CEO of Ann Arbor SPARK. The money will go toward creating the Washtenaw County Incubator Collaborative, which will help bring Ann Arbor SPARK's business incubator activities across the county. The idea is to help further the growth of tech-based start-ups and jobs across the county. Ann Arbor SPARK will partner with the MC3 Business Accelerator and the Michigan Research Institute to leverage the $1 million in state funding (and $722,500 in matching funds from the participating agencies) to create the the Washtenaw County Incubator Collaborative. The new partnership will focus on the medical device and defense industries as well as other high-growth industries in Washtenaw County. "We need to deal with regional solutions," Krutko says. Source: Paul Krutko, president & CEO of Ann Arbor SPARK Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Feature Story Landmark student housing high rise

Downtown Housing and the Affordability Gap

Affordable housing: What does it take to create it, where should it be, and who is it for? The answers to these questions are harder than you may think. As Ann Arbor increasingly focuses on developing its core neighborhoods, the challenges to creating housing opportunities for a diverse economic community become more and more apparent.

Feature Story Deb Polich of Artrain

Guest Blogger: Debra Polich

Did you know that art travels by train? Hundreds of arts councils state- and nationwide were launched by a train from Michigan decades ago. Deb Polich, director of Artrain and The Arts Alliance, offers up the history and future of Artrain.

Backyard Brains' DIY neuroscience kits make waves on CNN

Ann Arbor's Backyard Brains is making waves with its Spiker Box, an affordable neuroscience kit. Founder Greg Gage's interview and article appear on CNN. Excerpt: "...While most everyone is fascinated by the brain, very few get the chance to peer into the world of neurons. Because, until now, there wasn’t a way for amateurs to get involved. In neuroscience, for example, equipment to read out the brain activity can cost over $10,000. But this is beginning to change. With the DIY revolution, people can now have similar high-tech gear in their own homes and garages for under $100. When I was a grad student studying neuroscience my labmate, Tim Marzullo, proposed an interesting idea: Can we record from the brain for less than 100 dollars, just using everyday electronics? We set off on a self-imposed engineering challenge to see if we could replicate our expensive lab equipment with something affordable by consumers. We ended up with the SpikerBox: a small kit (which you can build yourself, if you like) that can listen to the living brain cells from insects." More here.

Cleaner, safer clothes could be on the way

It'd be nice to be able to cut way back on laundry. Researchers at U-M are developing liquid-repellent coatings for clothing and other products. Excerpt: "A nanoscale coating that's at least 95 percent air repels the broadest range of liquids of any material in its class, causing them to bounce off the treated surface, according to the University of Michigan engineering researchers who developed it. In addition to super stain-resistant clothes, the coating could lead to breathable garments to protect soldiers and scientists from chemicals, and advanced waterproof paints that dramatically reduce drag on ships." More here.

Bucking retirement trends, boomers are choosing Ann Arbor

Retirees are looking for college towns where they can keep their minds busy, instead of the golf course, and Ann Arbor is one of them. CNBC reports on the trend. Excerpt: "You really didn't expect Baby Boomers to flock to those staid retirement communities in Florida and Arizona, did you?... Thus, other affordable college towns such as Ann Arbor, Mich. (University of Michigan); South Bend, Ind. (Notre Dame); Gainesville, Fla. (University of Florida); and State College, Pa. (Penn State) offer exactly what Boomers are looking for these days: cheap homes, a reasonable cost of living, livability and lots of culture and sports." More here.

DRAFT magazine tips a pint at Ashley's

Ashley's has one of the Midwest's finest selection of pours, the tastemakers at DRAFT say. Excerpt: "It's easy to find excellent beer in Michigan (Short's, Jolly Pumpkin, Arcadia Ales), but to find it in one wood-dressed place where you'll rub elbows with grad students and true students of beer, you've gotta go to Ashley's. Some love it for the proximity to campus nightlife, but the savvier set reveres it for the 70-plus taps that often get first dibs on Michigan's finest." More here.

In Dexter, 3-mile B2B Trail link hits the ground running this February

It's full-on winter now, but that's not stopping the Border to Border Trail from growing. In February, work begins in Dexter on a new three-mile segment of what will be a 35-mile non-motorized trail connecting Washtenaw County to Livingston and Wayne Counties along the Huron River. This three-mile leg is expected to be completed by fall 2013. At that point, 23 miles of the planned 35 will be completed, says Coy Vaughn, deputy director of the Washtenaw County Parks & Recreation Commission. This new portion will run from Hudson Mills Metropark to Dexter, linking up to Warrior Creek Park. It will be mostly asphalt, but there will be a boardwalk through the wetlands and a small pedestrian bridge. "Once this is done, it will create a 13-mile round trip that you can take from downtown Dexter up through Hudson Mills Metropark. They already had three miles of trails on the other side of the [Huron] River, so overall it will be a 13-mile round trip bike ride, walk, run, or whatever from downtown Dexter," Vaughn says. On the east side of Dexter, work has concluded on a 1.25-mile trail headed towards Ann Arbor and ending at Dexter-Huron Metropark. That segment connects to the DPW yard in the village, with a small section adjoining Central St. Vaughn says it's not open to the public yet, as the county is in the process of obtaining a railroad easement. Hudson Mills Metropark is north of Dexter on the river, and to the southeast of Dexter is Dexter-Huron and Delhi Metroparks. "We're trying to connect all the Metroparks to the village [of Dexter] and the city of Ann Arbor," sayas Vaughn. Source: Coy Vaughn, deputy director, Washtenaw County Parks & Recreation Commission Writer: Tanya Muzumdar

The Ark music club purchases its Ann Arbor space, plans for future

After 48 years of music history in Ann Arbor, The Ark acoustic music club has settled on a permanent abode. At the end of 2012, the non-profit purchased its 8,000 sq. ft. space at 316 S. Main St. The $2.05 million transaction was completed as a condominium purchase from building owner Dr. Reza Rahmani, according to Marianne James, The Ark's executive director. "Sixteen years ago, when we had a new lease with terms totaling 20 years, that seemed like a long time. But with only four years left on that, we really needed to focus on locking in the next phase of The Ark's future," James says. "And if we could do that in a permanent location, we felt that was the best option we could secure for The Ark." The Ark is embarking on a capital campaign with the intention of paying off its mortgage in the next 5-7 years. James says funds raised will also be put towards capital improvements such as updating the concessions area, and "we're looking at redesigning the bar at some point, probably redesigning and perhaps expanding the box office, and there will be a whole series of things we'll keep a wish list on." The venue has seven full-time and five part-time employees. Anywhere from 51-54,000 people attend over 300 folk and roots music performances hosted there each year. That attendance figure does not include concerts The Ark hosts elsewhere, such as the Ann Arbor Folk Festival in Hill Auditorium or those at the Michigan Theater and other places, says James. "I think we're also part of the downtown identity, and the fact that we get to be part of that into the future is not only great for The Ark, it's great for downtown Ann Arbor." Source: Marianne James, executive director of The Ark Writer: Tanya Muzumdar

American Broach & Machine Co. invests $1.5M in Ypsilanti building

To keep up with production and R&D demands, American Broach & Machine Co., a maker of broaches (metal cutting tools), broaching machines, and CNC and manual broach tool sharpening machines for the auto, aircraft, train, off-road vehicle, defense, and other industries, recently purchased a new 42,880 sq. ft. building at 535 S. Mansfield St. in Ypsilanti. Adjacent to its 23,200 sq. ft. current location at 575 S. Mansfield St., the acquisition means a near-tripling of the company's current total square footage. American Broach & Machine Co. has been in business since 1919, and once employed Rosie the Riveter (Geraldine Hoff Doyle) as a broaching machine operator in its former Ann Arbor factory. The company will keep its existing building and move about half of its employees and equipment to the new location, beginning in June. The move should be completed by September, says President Ken Nemec. "We're going to be making broach tools in that plant and working on R&D projects for the broach and metal-cutting business. We've got three or four irons in the fire of things we'd like to develop," Nemec says. The purchase price was just under $1 million, and the company will invest another $500,000 in upgrades prior to moving in, according to Nemec. Upgrades include more efficient heating, ventilation and cooling systems systems, and high-efficiency lights using one-third the electricity of the current fixtures. The company has 48 employees and has been consistently hiring, adding a new position every 1-2 months, Nemec says. The average salary is over $50,000 per year. There are 4-5 job openings right now. "We're looking for unskilled trainee workers that have an aptitude for becoming a toolmaker. Over the next five years I anticipate adding probably 30 positions like that, " Nemec says, adding, "Within five years, maximum ten, we'd like to have 100 employees." Source: Ken Nemec, president, American Broach & Machine Co. Writer: Tanya Muzumdar

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.