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OF US. YEP. OKAY. CALLING THIS MEETING OF THE ECONOMIC DEVELOPMENT PROJECT TEAM TO
[1. Update from the Right Place]
ORDER OUR FIRST ITEM UP IS AN UPDATE FROM THE RIGHT PLACE. AND I SAW MR. FALLON. THERE HE IS. HE'S STILL HERE. THANK YOU. MAYOR. I'LL. AS MR. AND MR. MORALES COMES UP, WE'RE ALWAYS PLEASED TO HAVE RIGHT PLACE PROVIDED ECONOMIC UPDATE ON WHAT'S HAPPENING IN THE CITY AND THE REGION. AND THERE'S A LOT OF GOOD, EXCITING PROJECTS THAT ARE HAPPENING. MANY OF THEM REQUIRE YOUR APPROVAL OR AUTHORIZATION AT SOME POINT IN THE PAST OR WILL AT SOME POINT IN THE FUTURE. AND SO I ASK THEM TO GIVE US AN OVERVIEW TODAY OF WHAT ARE SOME OF THE THINGS THAT THEY ARE EXCITED ABOUT AND SOME OF THE THINGS THAT WE SHOULD BE CONCERNED ABOUT AND PUT ON OUR RADAR? THANK YOU. THANK YOU FOR THE OPPORTUNITY TO BE HERE. ALSO, SHOUT OUT TO THE CITY STAFF THAT I'VE MET AND CONNECTED WITH EARLIER IN THE BACK OF THE ROOM, ALWAYS IN THE BACK OF THE ROOM, GUYS. NEVER UP FRONT. BUT THANKS FOR THE PARTNERSHIP WITH THE RIGHT PLACE. LAST YEAR WE CELEBRATED OUR 40TH YEAR SERVING THE REGION. REALLY PROUD OF THE WORK WE'VE BEEN ABLE TO ACHIEVE TOGETHER ACROSS THE REGION. OVER THAT 40 YEAR WINDOW OF TIME, 56000 JOBS HAVE BEEN CREATED, IMPACTED BY OUR WORK AND OVER $6 BILLION OF NEW INVESTMENT. REALLY PLEASED WITH THAT PROGRESS. AND IF YOU PULL BACK, AS I'LL SHOW IN A MINUTE AND JUST LOOK AT HOW GREATER GRAND RAPIDS FITS WITHIN THE CONTEXT OF THE MIDWEST, WHAT WE'VE BEEN ABLE TO ACCOMPLISH IS TRULY REMARKABLE. SO REALLY PLEASED TO GIVE YOU THIS REPORT OF KIND OF LOOKING BACK OVER TIME A BIT AND THEN GETTING DOWN INTO THE WORK WE'RE DOING TOGETHER TODAY. MY COLLEAGUE TIM MARAS IS WITH ME. TIM IS OUR SENIOR VP OF COMMUNITY DEVELOPMENT, AND IT'S BEEN A GREAT LEADER IN THE ORGANIZATION FOR MANY YEARS.AND HE CELEBRATED HIS 50TH BIRTHDAY YESTERDAY. HE DID. HE'S EXCITED. SO HE'LL KILL ME FOR THAT LATER. SO OUR WORK, I CAME TO THE RIGHT PLACE TO BE CEO, TO SERVE AS CEO FIVE JUST OVER FIVE YEARS AGO, AND KIND OF TOOK THE BATON AND CONTINUED THE RACE THAT STARTED FOR THE FIRST 30 OR SO YEARS OF THE ORGANIZATION. WE CENTER OUR WORK AROUND THREE PILLARS OF PEOPLE, PLACE AND PROSPERITY AND THE PEOPLE SIDE OF THINGS, LED BY DOCTOR THERESA JOHNSON.
YOU MAY HAVE SEEN OR MET HER OUT IN THE COMMUNITY. OUR PLACE TEAM IS LED BY TIM MARAS, AND OUR PROSPERITY TEAM IS LED BY ANDREA RAMKUMAR, WHO'S BEEN BEFORE THIS COMMITTEE IN THE PAST AS WELL, OR BEFORE COUNCIL AS WELL. I WANT TO SET SOME CONTEXT HERE AND SHOW WITH DATA KIND OF HOW THIS REGION HAS PERFORMED, INCLUDING ESPECIALLY CERTAINLY THE CITY. IF YOU LOOK AT THIS MAP, YOU KNOW, GRANTED, ELECTIONS WERE LAST TUESDAY. THIS IS NOT AN ELECTORAL MAP.
THIS IS A POPULATION DEMOGRAPHIC MAP FROM 2000 TO 2010, THE FIRST DECADE OF THIS CENTURY, EVERYTHING IN BLUE GOT YOUNGER. EVERYTHING IN RED GOT OLDER. FROM A WORKFORCE PERSPECTIVE, YOU CAN SEE THE VAST MAJORITY OF THE COUNTRY GOT WAS GOT YOUNGER IN THAT WINDOW OF TIME AS THE MILLENNIALS KIND OF CAME OF AGE AND ENTERED THE WORKFORCE. IF YOU FAST FORWARD TO THE NEXT DECADE OF ■THIS CENTURY, YOU CAN NOTICE A DRASTIC CHANGE. I'LL SHOW JUST ONE MORE TIME. FIRST DECADE VIRTUALLY EVERYWHERE GOT YOUNGER EXCEPT THE PLAINS STATES AND THE U.P. AND A FEW OTHER REMOTE PLACES. THE NEXT DECADE, QUITE A CHANGE. QUITE A CHANGE. AND YOU'LL NOTICE IN THE MIDWEST IN PARTICULAR, IT WAS VERY DIFFICULT FOR REGIONS TO MAINTAIN THAT YOUTHFUL EDGE AMONG THEIR WORKFORCE. AND YOU CAN SEE IT'S COLUMBUS, IT'S INDIANAPOLIS, IT'S MINNEAPOLIS. YOU'LL NOTICE IT'S THE SUBURBS OF CHICAGO. NOW, DOWNTOWN CORE CHICAGO HAS COME BACK OF LATE, BUT THROUGH 2021, WHEN THE STATE WAS RUN. AND THEN, OF COURSE, HERE IN GRAND RAPIDS, THIS IS THE GROUP THAT WE WANT TO BE A PART OF. COMPANIES WANT TO LOCATE OR FIND A PLACE TO LIVE OR CALL HOME. FROM A BUSINESS PERSPECTIVE, THEY WANT TO BE WHERE THE WORKFORCE IS, IS GROWING AND GETTING YOUNGER. WE'VE BEEN ABLE TO ACHIEVE THAT, AND I THINK IT'S A CONSISTENT, THOUGHTFUL, STRATEGIC PLANNING PROCESS. COMBINED COLLABORATIVE ECONOMIC DEVELOPMENT EFFORT ALL LEADS TO SORT OF THE SECRET SAUCE THAT HAS HELPED US SORT OF SWIM UPSTREAM IN THE MIDWEST, SWIM UPSTREAM IN MICHIGAN TO PRODUCE THESE KIND OF RESULTS COLLECTIVELY. IF YOU FAST FORWARD, HERE'S A MAP PRODUCED BY THE UNIVERSITY OF MICHIGAN'S ECON DEPARTMENT AND THE DEMOGRAPHIC TEAM DEMOGRAPHIC ANALYSIS TEAM. THIS IS A FORECAST OF POPULATION CHANGE BY COUNTY OVER THE NEXT 30 YEARS. AND YOU CAN SEE IT'S REALLY THE I-96 CORRIDOR AND TO SOME EXTENT, THE 131 CORRIDOR IN MICHIGAN. I POINT OUT ON THE LEFT THAT THE THE KEY TO THE TO THE CHART, THE GROWTH RATES HERE ARE NOT TERRIBLY HIGH. 4% GROWTH GETS YOU IN THE GREEN CATEGORY. RED IS IN DECLINE. YELLOW IS IN DECLINE. THIS IS A REALLY TROUBLESOME MAP FOR MICHIGAN. YET AGAIN, WE'RE KIND OF SWIMMING UPSTREAM AND HAVING RESULTS. AND I THINK IT'S THIS IS THE FORECAST GOING FORWARD. AND ON THE JOB FRONT, JOBS ARE GOING TO BE A LITTLE BIT MORE DIFFICULT THAN POPULATION GOING FORWARD AS WE AGE AND THE BABY BOOMERS RETIRE. AND SO YOU SEE EVEN LESS FORECASTED GROWTH ON THE JOB FRONT THAN ON THE
[00:05:05]
POPULATION FRONT. SO THE FIRST TWO SLIDES, I THINK, ILLUSTRATE HOW WE'VE WE'VE EVOLVED AND MATURED AS A MARKET INTO ONE OF THE GROWTH ENGINES OF THE MIDWEST. THE NEXT TWO THE LAST TWO SLIDES. THEN I THINK SIGNAL. WE HAVE TO WE HAVE TO EARN THIS FORECAST. WE HAVE TO GO AFTER IT. WE HAVE TO CONTINUE TO, TO, TO FIND WAYS TO GROW THIS REGION, GROW THIS GREAT CITY.SO TIM AND I WILL SHARE THE NEXT FEW SLIDES, BUT ON THE PEOPLE SIDE, I WANT TO GET INTO SOME OF THE WORK THAT WE'RE DOING THAT'S DRIVING SOME OF THESE DEMOGRAPHIC RESULTS THAT I SHARED. AS I MENTIONED, DOCTOR JOHNSON LEADS OUR TALENT INITIATIVES. WE ARE ACTIVELY VISITING WITH COMPANIES AS A WHOLE ACROSS THE THE REGION. OUR BUSINESS DEVELOPMENT TEAM VISITS WITH ABOUT 600 TO 650 COMPANIES PER YEAR, FACE TO FACE MEETINGS WITH THE C-SUITE LEADERSHIP OF THESE COMPANIES, ASKING WHAT PROBLEMS THEY'RE FACING AND HOW WE CAN RESOLVE THEM, WHAT OPPORTUNITIES ARE THEY'RE PURSUING, AND HOW DO WE ACCELERATE THEM. TO RITA AND THE TEAM, THEN FOLLOW UP WITH COMPANIES THAT HAVE ACUTE TALENT CHALLENGES. ARE THEY HAVING A DIFFICULT TIME FINDING TALENT? ARE THEY RECRUITING TALENT, RETAINING TALENT? AND SHE'S AN EXPERT IN THAT FIELD AND IS ABLE TO PROVIDE DIRECT ASSISTANCE OR POINTER TO PARTNERS IN THE COMMUNITY THAT CAN 2026 INTERN CONNECT? THAT'S THE PROGRAM WE'RE TERRIBLY PROUD OF. RACHEL GRAY, WHO'S NOW ON YOUR CITY STAFF, IS REALLY THE CATALYST FOR THIS.
FOR MANY YEARS, THE ONE OF THE BIGGEST INFLUXES OF TALENT INTO OUR PIPELINE COMES BY WAY OF INTERNS, PARTICULARLY COLLEGE EDUCATED, COLLEGE EDUCATED TALENT INTO OUR SYSTEM IS THROUGH COLLEGE INTERNS. THIS PROGRAM IS DESIGNED TO REALLY HELP, YOU KNOW, THE COMPANIES OWN THE RELATIONSHIP FROM A BUSINESS PERSPECTIVE. FROM AN EMPLOYMENT PERSPECTIVE, INTERN CONNECT IS A PROGRAM THAT REALLY HELPS THEM CONNECT TO COMMUNITY. SO THIS YEAR WE PUT OUT A FULL FLEDGED CONFERENCE. WE HAD OVER NEARLY 600 PEOPLE THERE. WE'VE ALSO EXTENDED THAT WITH EXPERIENCES AROUND TOWN SO THEY CAN UNDERSTAND WHAT OFFER, WHAT AMENITIES WE HAVE. SO WE'VE DONE BOCCE BALL AT AT SILVA, WE'VE DONE KAYAKING AND SWIMMING AND ALL KINDS OF CRAZY THINGS OUT AT MILLENNIAL PARK, AND I THINK THEY DID THE LINE DANCING AT ROSA PARKS AND TRUCK AND THE FOOD TRUCK DAY AND WHAT HAVE YOU, BUT ALL AROUND, TRYING TO GET THESE YOUNG PEOPLE TO, TO ATTACH THEMSELVES TO COMMUNITY JUST AS MUCH AS THEY'RE ATTACHING TO THEIR COMPANY TALENT 100 PARTNERSHIPS. WE'RE WORKING WITH AREA COMPANIES TO DEEPEN THEIR ENGAGEMENT WITH OUR TRAINING PROVIDERS, WHETHER IT'S GRCC, GVSU, AND BEYOND. THE KENT ISD'S CAREERTECH PROGRAM. OVER THE YEARS, AS WE'VE GROWN AS A MARKET, THE NUMBER OF COMPANIES THAT ARE DEEPLY INVOLVED IN DEVELOPING THE PIPELINE OF TALENT HAS STAYED THE SAME. AND SO WE NEED TO LEVEL UP AND MAKE SURE THE NUMBER OF COMPANIES PARTICIPATING MATCHES THE GROWTH THAT WE'VE ACHIEVED. AND THEN FINALLY, ON RADICAL HOSPITALITY, THIS IS A NEW INITIATIVE. THIS YEAR, WE HAD AN INFLUX OF COMPANIES THAT WERE RECRUITING FROM OUT OF MARKET LAST OVER THE LAST 18 MONTHS. AND SO WE WORKED WITH THOSE. AND IT WAS, YOU KNOW, MSU AND COREWELL AND AMWAY MOVED TO FACILITY FROM CALIFORNIA TO ADA. AND SO WE'RE WORKING WITH EMPLOYEES THAT ARE COMING FROM ALL ACROSS THE COUNTRY IN SOME DEGREES AROUND THE WORLD, AND HELPING THEM EMBED IN OUR COMMUNITY, WORKING WITH THEM AND THEIR PARTNER TO UNDERSTAND GRAND RAPIDS, DO SOCIAL ACTIVITIES ALL AROUND TOWN. WE HAVE AN EVENT NEXT WEEK OUT AT CORWELL, KIND OF A FOOD TRUCK DAY WHERE WE'VE ALREADY GOT 80 PEOPLE THAT ARE JOINING US FOR THAT PROGRAM. TIM, YOU WANT TO TAKE IT ON, PLEASE? YEAH. WELL, GOOD AFTERNOON EVERYBODY. SO I WANT TO QUICKLY TOUCH ON THIS DEVELOPER DAY EVENT THAT IS NOW WE JUST COMPLETED OUR FIFTH YEAR. NOT SURE HOW WELL YOU KNOW ABOUT IT OR KIND OF THE BACKGROUND ON HOW IT CAME TO BE. BUT COMING OUT OF COVID, ONE OF THE THINGS THAT WE DISCOVERED WHEN WE STARTED WORKING ON COMMUNITY DEVELOPMENT IS AS MUCH AS WE WOULD LIKE THE CONSTRUCTION AND DEVELOPMENT INDUSTRY TO WORK TOGETHER, THEY REALLY WORK IN A LOT OF SEPARATE SILOS. YOU HAVE THE CONSTRUCTION FOLKS THAT WOULD DO THEIR THING. YOU HAVE BROKERS THAT DO THEIR THING. YOU HAVE ARCHITECTS AND ENGINEERS THAT DO THEIR THING.
YOU HAVE DEVELOPERS THAT DO THEIR THING AND FINANCE DOES THEIR THING. THERE WERE VERY FEW OPPORTUNITIES FOR ALL OF THEM TO COME TOGETHER. AND SO WE SAID, YOU KNOW WHAT? THAT'S EXACTLY WHAT WE'RE GOING TO DO. AND SO FOR THE PAST FIVE YEARS, WE'VE BEEN WORKING, WORKING IN PARTNERSHIP WITH THE CITY. THIS IMAGE YOU SEE HERE IS ACTUALLY FROM STOCKING ELEMENTARY WAS ONE OF THE YEARS THAT WE HOSTED DEVELOPER DAY. ONE OF MY FAVORITE MEMORIES WAS ACTUALLY PUTTING GROWN ADULTS IN LITTLE KID CHAIRS AROUND KINDERGARTEN TABLES TO, TO DISCUSS ECONOMIC INCENTIVES, WHICH WAS A FUN DAY. BUT, YOU KNOW, OVER THE YEARS, THE, THE FIRST YEAR WE LAUNCHED IT, WE HAD ABOUT 85 PEOPLE THAT ATTENDED THIS LAST YEAR, WE TOPPED 200. SO IT'S A GREAT OPPORTUNITY TO KIND OF CROSS, CROSS COLLABORATE. CITY OF GR HAS BEEN A PARTNER FROM THE BEGINNING. THEY THEY HAVE HOSTED SEVERAL BUS TOURS, DEVELOPMENT TOURS, SHOWING OFF THE CITY DURING THOSE DURING THOSE DEVELOPER DAY EVENTS, WE ALSO HAVE THE OPPORTUNITY TO DO ONE ON ONE MEETINGS. AND THIS ACTUALLY CAME, I WILL ADMIT, BECAME BY MISTAKE. WE ACTUALLY HAD A WHOLE ONE YEAR IN OUR IN OUR AGENDA. AND WE SAID, YOU KNOW WHAT, WHY DON'T WE OPEN IT UP FOR, FOR COMMUNITIES TO, TO MEET ONE ON ONE WITH DEVELOPERS? AND I ALWAYS THOUGHT, WELL, DEVELOPERS CAN DO THAT ANYTIME THEY WANT. IT SEEMS LIKE THEY MAKE SENSE. AND IT ACTUALLY IS.
IT'S ACTUALLY BECOME ONE OF THE MOST POPULAR THINGS IN DEVELOPER DAY. AND BELIEVE IT
[00:10:04]
OR NOT, THE CITY OF GRAND RAPIDS HAS SOLD OUT EVERY SINGLE ONE OF THE YEARS THAT THEY PARTICIPATED AND HAS ACTUALLY BECOME SORT OF A FUNNY JOKE THAT PEOPLE WILL HORSE TRADE TIME SLOTS. THEY'LL SAY, YOU KNOW, I'LL TAKE I'LL TAKE YOUR GRANVILLE POSITION IF I CAN GET INTO YOUR 430 WITH, WITH, WITH THE CITY OF GRAND RAPIDS. SO PEOPLE ARE ACTUALLY HORSE TRADING TO GET INTO MEETINGS WITH, WITH THE CITY OF GRAND RAPIDS. SO, AND I'M HAPPY TO SAY THAT FOUR OUT OF THE FIVE YEARS THAT WE'VE HOSTED HAVE ALL BEEN IN GR LOCATION.SO. I PUT THIS ONE UP HERE FOR, FOR ONE IMPORTANT REASON. LAST WEEK I WAS IN DETROIT MOST OF THE WEEK AT OUR ECONOMIC DEVELOPMENT CONFERENCE. BUT THERE I ALSO MET WITH A SERIES OF DEVELOPERS JUST BECAUSE I WAS OVER THERE. AND I WANT TO MAKE SURE WE CONTINUE TO BUILD MORE EAST WEST COLLABORATION WITH SOME OF THE DEVELOPMENT COMMUNITY OVER THERE. AND I THINK IT'S EASY FOR US TO TO ONCE ONCE THE AMPHITHEATER IS BUILT. AND WE CELEBRATED LIONEL RICHIE AND WE MOVED OFF TO THE NEXT TO THE NEXT CONCERT, WE SEE THE SOCCER STADIUM GOING UP.
WE SEE IT GOING UP ENOUGH. WE IT TENDS TO BECOME DAILY ROUTINE FOR US. IT IS MAKING NEWS STATEWIDE. WHEN I WAS OVER IN DETROIT, I HAD AT LEAST A DOZEN PEOPLE COME UP TO ME AND SAY, WE'RE TALKING ABOUT WHAT'S GOING ON IN GRAND RAPIDS. I SAID, WELL, WE JUST OPENED UP A NEW AMPHITHEATER. OH YEAH, I'VE HEARD ABOUT THAT. THAT SOUNDS LIKE AN AMAZING PLACE, I SAID, SO YOU TALK A LITTLE BIT MORE ABOUT IT AND THEN YOU START TALKING ABOUT, OH, IT'S ALSO GOT A RIVER TRAIL THAT WE JUST COMPLETED THAT CONNECTS TO IT AS WELL. AND I THINK THIS IS HAVING A BIGGER IMPACT THAN WHAT WE EVEN THINK THAT THIS IS HAPPENING FOR OUR OWN COMMUNITY.
SO IT'S SOMETHING THAT WE SHOULD CONTINUE TO BE PROUD OF. I KNOW NOTHING'S PERFECT. I KNOW WE'RE TALKING ABOUT SOUND AND THINGS LIKE THAT RIGHT NOW, BUT IT'S SOMETHING THAT WE ALL SHOULD BE EXTREMELY PROUD ABOUT AS A COMMUNITY AND NOT, NOT LOSE THAT ONCE IT'S BUILT THAT WE DON'T REALIZE THAT, YOU KNOW, THE TREASURE THAT WE'VE JUST BUILT FOR THE NEXT SEVERAL DECADES. FINALLY, I WANT TO TALK ON SOME OF THE, SOME OF THE PLACEMAKING GRANTS THAT WE'VE BEEN ABLE TO PARTNER WITH THE CITY ON FOR, IN PARTICULAR, THE G R PUBLIC MUSEUM, THE RIVERFRONT, WE WERE ABLE TO, TO, TO SECURE A GRANT TO, TO AID IN THAT. WE'VE ALSO BEEN ABLE TO SECURE THE I. I MENTIONED THE AMPHITHEATER, THE RIVER TRAIL. THERE WAS A GRANT TO SUPPORT THAT SULLIVAN FIELD. WE GOT AN $800,000 GRANT TO SUPPORT $600,000 GRANT TO SUPPORT THAT.
THAT PROJECT, AS WELL AS THE CANAL PARK RESTORATION. SO ALL IN ALL, IT'S ABOUT THREE, $3.5 MILLION IN GRANTS THAT ARE SUPPORTING ABOUT 17/17,000,000 DOLLARS IN PLACEMAKING PROJECTS IN AND AROUND THE CITY OF GRAND RAPIDS. SO AGAIN, SOMETHING TO BE PROUD OF AS WE'RE MOVING FORWARD. WE'RE WORKING TOGETHER BOTH ON THE DEVELOPMENT SIDE OF THINGS, BECAUSE WE WANT TO SEE GROWTH AND DEVELOPMENT GROWTH IN HOUSING. BUT ALSO WE'RE NOT FORGETTING THESE THESE CRITICAL PLACEMAKING PROJECTS AS WELL. PROSPERITY. AND MAYBE JUST ONE QUICK COMMENT ON THE PLACE WORK THAT TIM HAS LED. SO AT THE OUTSET OF THE PANDEMIC, OR I GUESS IT WAS PROBABLY A YEAR INTO IT, CITY MANAGER, I REMEMBER WE GATHERED SOME LEADERS AROUND WHAT WE RECOGNIZE THERE WAS GOING TO BE A WAVE OF SORT OF STIMULUS MONEY MAKING ITS WAY THROUGH THE SYSTEM, AND WE PUT OUR HEADS TOGETHER AND IDENTIFIED A COLLECTION OF PROJECTS, SORT OF ASPIRATIONAL PROJECTS. IF WE COULD FIND A WAY TO FOCUS IN ON THOSE THINGS AND GET THEM ACCOMPLISHED, THAT WOULD MAKE A BIG STEP INCREASE FOR OUR COMMUNITY AND REALLY PROUD OF THE SUCCESS WE'VE HAD WITH THOSE TRANSFORMATIONAL PROJECTS, FINDING THE FUNDING THAT GOT THEM OFF AND RUNNING. AND I WOULD ARGUE THAT OUR REGION, OUR COMMUNITY, OUR CITY USE THOSE DOLLARS AS EFFECTIVELY AS ANY PLACE IN THE COUNTRY TO GET BIG THINGS DONE, AND IT WILL PAY DIVIDENDS FROM A QUALITY OF LIFE PERSPECTIVE FOR DECADES AND DECADES. SO KUDOS TO THE PARTNERSHIP THERE. ON THE BUSINESS SIDE, OUR PROSPERITY EFFORT. JUST A FEW THINGS TO HIGHLIGHT THAT HAVE BEEN HAPPENING IN THE CORE OF THE CITY OR IN THE CITY PROPER.
IT'S KIND OF QUIET. PEOPLE DON'T ALWAYS CELEBRATE THIS OR UNDERSTAND THIS, BUT THIS BUILDING THAT'S CONNECTED TO THE VAN ANDEL OR VAN HALEN VAN ANDEL ARENA, IT'S ACTUALLY WHERE THE RIGHT PLACE NOW CALLS HOME AS WELL. BUT WE'VE HELPED BRING GENTEX, WHICH IS HISTORICALLY ALWAYS BEEN SOLELY IN ZEELAND. THEY'VE OPENED UP A TECH CENTER IN THIS BUILDING.
AS WE KNOW. WE'VE ALSO WORKED WITH THEM TO OPEN UP A MANUFACTURING ASSEMBLY PLANT DOWN IN SOUTH TOWN WITH THE MAYOR AND I TOUR NOT TOO LONG AGO. AVATURE IS A REGIONAL MEDICAL DEVICE COMPANY SELLING AROUND THE WORLD. THEY BROUGHT THEIR HEADQUARTERS DOWNTOWN, AS DID TESLA TAPE. TESLA MOVED THEIR NORTH AMERICAN. IT'S A GERMAN COMPANY THAT BIRGIT CLOSE WORKED WITH ABOUT 40 YEARS AGO. I THINK IT WAS THE FIRST MANUFACTURING PROJECT FROM GERMANY THAT LOCATED IN WEST MICHIGAN. SHE BROUGHT THE MANUFACTURING PLANT. WE BROUGHT THE HEADQUARTERS. I'D LIKE TO JUST TEASE HER A LITTLE BIT, BUT TESLA BROUGHT THEIR NORTH AMERICAN HEADQUARTERS FROM CHARLOTTE, NORTH CAROLINA, TO GRAND RAPIDS ABOUT A YEAR AND A HALF AGO. AND THEY OCCUPY THE TOP FLOOR OF OUR BUILDING. OVED AN INSURANCE COMPANY THAT'S FAST GROWING, SERVING BOTH MICHIGAN MARKETS AS WELL. NOW, NATIONALLY, THEY HAD PRESSURE TO TO GROW JOBS IN PITTSBURGH, NASHVILLE AND AUSTIN. AND THEY DOUBLED DOWN THEIR THEIR INVESTMENT HERE. THEY'RE LOCATED JUST DOWN MONROE. OR I'M SORRY, JUST DOWN OTTAWA.
AND LAST WEEK OR ABOUT A MONTH AGO, I'M SORRY, DRAMATIC. YOU KNOW, IT USED TO BE RAPID. AND A LOT OF FOLKS WHO'VE BEEN AROUND TOWN KNOW IT WELL AS RAPID. BUT DRAMATIC IS A GLOBAL
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LEADER IN AUTOMATION SYSTEMS. THEY JUST OPENED UP THE $50 MILLION INNOVATION CENTER. THEY ARE BRINGING PEOPLE FROM AROUND THE WORLD TO, TO EXPERIENCE THEIR TEST LAB FACILITY, EXPERIENCE THEIR AUTOMATION SYSTEMS FIRSTHAND. IT IS TRULY REMARKABLE. I WOULD ENCOURAGE ALL OF YOU TO GO SEE IT. IF YOU HAVEN'T ALREADY. IT WILL BRING IN PEOPLE FROM OUT OF TOWN TO FILL OUR HOTEL ROOMS, RENT CARS, UTILIZE OUR AIRPORT AND WHAT HAVE YOU. EXCUSE ME, OUR TEAM, JENNIFER WANGLER, WHO LEADS OUR TECH INITIATIVES, WORKED WITH BAMBOO EXTENSIVELY ON SECURING THE RESOURCES NECESSARY TO LAUNCH SUCCESSFULLY HERE IN OUR MARKET. ADDING TO THAT STARTUP ECOSYSTEM THE RIGHT PLACE. WE'RE SORT OF STARTUP ECOSYSTEM ADJACENT. WE SUPPORT SOME OF THOSE ORGANIZATIONS LIKE BAMBOO, LIKE START GARDEN, LIKE MSU AND SPARTAN INNOVATIONS. WE DON'T DO A LOT OF DIRECT WORK, ALTHOUGH TECH WEEK CERTAINLY HAS SORT OF ELEVATED THAT. BUT WE'RE PLEASED TO BE ABLE TO HELP BRING NEW LIFE TO THAT BUILDING AND THE ENERGY ON THAT CORNER OF MAIN AND MAIN, IF YOU WILL, IS REALLY EXCITING FOR OUR COMMUNITY. AND I ALLUDED TO TECH WEEK BEFORE, HOPEFULLY YOU'VE STARTED TO SEE SOME OF THE PROMOTIONS FOR THIS. IT IS TRULY A GRASSROOTS EFFORT. ORGANIZATIONS, COMPANIES, STARTUPS HOSTING THEIR OWN EVENTS THROUGHOUT THE WEEK. AND WE JUST WRAPPED UP THE DEADLINE WAS LAST FRIDAY. WE HAVE 151 SUBMISSIONS. IT WILL BE THE LARGEST TECH WEEK FROM A CONCESSION STANDPOINT EVER AND REALLY, REALLY, FRANKLY PROUD OF THE WAY THE COMMUNITY HAS EMBRACED THIS. WE MAY SORT OF ORCHESTRATE IT AT THE RIGHT PLACE, BUT IT IS REALLY A GRASSROOTS PROGRAM. AND WE HAVE PROGRAMS FOR YOUNG STUDENTS, MIDDLE SCHOOLERS, GETTING TO TRY ON VR HEADSETS AND PLAY WITH HUMANOID ROBOTS ALL THE WAY TO TWO OF THE SHARK TANK LEADERS FROM ABC SHOW. LASTLY, TIM, YOU WANT TO TALK ON THESE REPORTS? YEAH. SO I WILL SAY THIS IS WHAT HAPPENS WHEN YOU HIRE A CEO WITH NOT ONE, BUT TWO ECON DEGREES IS YOU LEARN TO LOVE DATA. AND SO SEVERAL YEARS AGO, WE STARTED PUBLISHING FOR EACH ONE OF OUR VERTICALS, AN ANNUAL INDUSTRY REPORT FOR EACH ONE. SO YOU'LL SEE WE HAVE ONE FOR ADVANCED MANUFACTURING, ONE FOR TECH, ONE FOR TALENT. AND THEN THE ONE THAT I LEAD IS OUR DEVELOPMENT REPORT AS WELL AS OUR STATE OF THE REGION REPORT. I HIGHLY ENCOURAGE YOU GUYS TO TAKE A LOOK AT THESE. THEY'RE, THEY'RE, THEY'RE FREE TO DOWNLOAD OFF OUR OFF OF OUR WEBSITE. WE SHARE THEM FREELY WITH THE COMMUNITY. BUT IT'S A, IT'S A GREAT MIX OF BOTH QUANTITATIVE DATA, WHICH IS, YOU KNOW, FROM FEDERAL BLS, CENSUS DATA, THINGS LIKE THAT, AS WELL AS OUR OWN INTERNAL DATA. ONE OF THE THINGS I'LL SAY IS, YOU KNOW, WE HIGHLIGHTED FROM OUR DEVELOPMENT REPORT, WE TRACK WHAT COMPANIES ARE INTERESTED IN WHEN THEY CONTACT THE RIGHT PLACE, OR THEY CONTACT THE STATE AND THEY SAY, WE'RE LOOKING FOR A MANUFACTURING FACILITY AND IT NEEDS TO BE 60,000FT■!S. IT NEEDS TO BE 160,000FT■!S. WHAT IT IS, WE TRACK THAT OVER TIME. AND SO WE'VE STARTED TO NARROW INTO A SWEET SPOT. AND SO WHEN INDUSTRIAL DEVELOPERS ARE ASKING US, WHAT ARE MANUFACTURERS LOOKING FOR IN WEST MICHIGAN, IF I WERE TO BUILD SOMETHING ON SPEC, WHICH WE DREAM SOMEDAY THAT SOMEONE WILL BUILD SOMETHING ON SPEC HERE IN GRAND RAPIDS, WE HAVE SOMEPLACE TO MOVE. MOVE FOLKS INTO WHAT SHOULD I BE BUILDING? AND RIGHT NOW THAT THAT, FOR EXAMPLE, THAT'S THAT SECRET.THAT SWEET SPOT RIGHT NOW IS ABOUT 60 TO 80,000FT■!S OF FLEXIBLE MANUFACTURING SPACE. I WAS ABLE TO MEET WITH A CONSTRUCTION COMPANY LAST MONTH THAT HAS SINCE PUT OPTIONS ON THREE DIFFERENT PROPERTIES SINCE THEN, AND ONE OF THE PROPERTIES HAS ALREADY BEEN PRE-LEASED, YOU KNOW, BASED ON THE DATA THAT WE RELEASED FROM THAT REPORT. SO I HIGHLY ENCOURAGE YOU GUYS TO TAKE A LOOK AT THAT. LIKE I SAID, IT'S A MIXTURE OF OUR OWN QUALITATIVE DATA, AS WELL AS THE QUANTITATIVE DATA FROM VARIOUS GOVERNMENTAL DATA SETS.
SO. THANKS, CITY MANAGER. YOU WANT TO GO AHEAD FIRST? THAT'S FINE. I HAVE A COUPLE THINGS TO ADD. SO A COUPLE THINGS I, I LOVE THE EMPHASIS ON DATA AND THIS IS, YOU KNOW, LOTS, LOTS OF EXCITING, GOOD STUFF HERE AND, YOU KNOW, LOTS OF REASONS TO HOPE AND THINK THAT THESE ARE THINGS THAT WE CAN BUILD ON. SO I WANT TO TALK ABOUT THE PLACEMAKING THING A LITTLE BIT MORE, BECAUSE I DO THINK THAT THIS IS A POINT AT WHICH WE CAN MAYBE SAY, SO THE GENERAL PUBLIC CAN HEAR, YOU KNOW, IF WE'RE THINKING ABOUT GRAND RAPIDS BECOMING MORE NATIONALLY PROMINENT, PLACEMAKING, I THINK, IS GOING TO BE A REAL BIG PART OF THAT. AND I'VE SAID IN SOME FORMATS RECENTLY THAT LIKE RIGHT NOW WE REALLY HAVE TWO THINGS THAT ARE NATIONALLY UNIQUE. ONE OF THEM IS ARTPRIZE, WHICH IS SORT OF A POP UP EVENT. AND THE AND, YOU KNOW, TECH WEEKS REALLY LEVERAGED OFF THAT. AND THAT'S A BRILLIANT USE OF BRILLIANT EXAMPLE OF SORT OF SYNERGISTIC USE OF A UNIQUE RESOURCE. BUT THE OTHER IS THE MY GARDENS AND THOSE ARE THINGS THAT I JUST, I, I'D STRUGGLE TO FIND ANOTHER ONE AROUND. I MEAN, THERE ARE OTHER MANY CITIES HAVE ART GALLERIES AND I LOVE ART GALLERY, BUT LIKE, WE'RE NOT UNIQUE IN HAVING ONE. WE'RE NOT UNIQUE IN HAVING LIBRARIES. WE'RE NOT. BUT THOSE ARE TWO THINGS THAT ARE REALLY UNIQUE.
AND I THINK THAT WE'RE ON THE CUSP WITH SOME OF OUR NEWER AMPHITHEATER SOCCER STADIUM
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THINGS. WE'RE ON THE CUSP OF MAYBE BECOMING NOT A ONE DAY CITY, BUT A MULTIPLE DAY CITY FOR PEOPLE TO STAY EXPERIENCE. AND, AND AS I'VE SAID, OFTEN LIKE WHAT I WHAT EXCITES ME ABOUT THE AMPHITHEATER AND SOCCER STADIUM IS NOT THAT PEOPLE CAN GO TO IT. IT'S THAT THEY'RE KICKING THE TIRES OF OUR COMMUNITY. IF THEY'RE COMING FROM SOMEWHERE ELSE TO SEE IF THEY WANT TO LIVE HERE. AND, AND SO FOR ME, THOSE ARE SORT OF BRICK AND MORTAR AMBASSADORS. AND SO THAT'S GREAT. ONE OF THE THINGS THAT I, I WONDER ABOUT IN TERMS OF OUR REPORTING OUT AND THINKING ABOUT THINGS GOING FORWARD IS I THINK EVERYONE IN THE SPACE KNOWS THAT, YOU KNOW, TECH IS REALLY IMPORTANT FOR CITY'S VIABILITY. HEALTH SYSTEMS ARE REALLY IMPORTANT FOR CITIES. WHEN YOU LOOK AT REALLY SUCCESSFUL CITIES, THEY TEND TO HAVE GOOD MEDICAL FOOTPRINTS. WELL, ANOTHER ONE IS EDUCATION. AND THAT'S LIKE A WAY THAT WE CAN REALLY, REALLY HIGHLIGHT, LIKE GRAND VALLEY AND CALVIN AND AQUINAS AND, AND DAVENPORT AND, AND THESE OTHER RESOURCES AS PART OF OUR PLACE PLACEMAKING, KEEPING OUR CITY YOUNGER, BUT ALSO GIVING US PEOPLE WHO WILL MAYBE STICK IN GRAND RAPIDS IN, IN REALLY GOOD HIGH PAYING JOBS FOR SOME OF THESE COMPANIES THAT YOU'RE RECRUITING. THAT ALL JUST SEEMS TO ME TO BE SYNERGISTIC. SO I'D LOVE TO, AS AN ONGOING PART OF OUR STORYTELLING, LIKE INCLUDE LIKE THE EDUCATIONAL SYNERGIES AND STUFF. THE OTHER THING THAT, THAT, THAT JUMPED OUT AT ME WAS, AND THIS IS I'M JUST GOING TO, AT THE RISK OF SOUNDING LIKE SOME OF MY OTHER COLLEAGUES, THIS IS JUST A VERY MUCH AN OUT OF LEFT FIELD THING. BUT IT SEEMS TO ME ONE OF THE STRENGTHS OF GRAND RAPIDS IS, IS NOT JUST THAT WE HAVE JOBS AND NOT JUST THAT WE HAVE THE TALENT THAT WE DO, AND NOT JUST THAT WE HAVE THE THINGS, THE FUN THINGS TO DO, BUT PROXIMITY TO WHERE YOU WORK. AND I DON'T I'M SURE THERE ARE METRICS OUT THERE FOR THAT, AND I DON'T I WONDER IF ONE OF THE REASONS WHY WE CONTINUE TO BE STRONG AND CAN LEAN INTO THAT STRENGTH IS MAYBE THAT, LIKE A LOT OF US DON'T LIVE THAT FAR AWAY FROM WHERE WE WORK. AND THAT'S GOT REAL ADVANTAGES FOR AFFORDABILITY. FOR EXAMPLE, YOU KNOW, YOUR HOUSING IS A LOT MORE AFFORDABLE IF YOU'RE LIVING CLOSE TO WHERE YOU WORK JUST INHERENTLY AND ORGANICALLY.SO I, THE, THE PROXIMITY TO WORK QUESTION AND THE HOUSING TIE IN, I THINK IS A KEY TO A LONG TERM PROSPERITY TO THAT. AGAIN, THESE ARE THINGS, YOU KNOW, I'M NOT SAYING THIS IS AN INCOMPLETE REPORT. IT'S A GREAT REPORT, BUT THINGS TO THINK ABOUT IN THE FUTURE AS WE CONTINUE TO PULL IN ALL THESE OTHER THREADS. YEAH, IF I IF I MAY 1ST, THAT WAS A LOT. NO, NO, BUT I THINK WE WERE GIVEN LIKE 12 MINUTES WITH SO MUCH FLOUR IN THAT 12 MINUTE SACK. BUT WE FROM A PLACEMAKING STANDPOINT, FROM A, FROM AN ASSET STANDPOINT, WHEN WE THINK OF THE AMPHITHEATER, THE SOCCER STADIUM OR MEIJER GARDENS AND THOSE THINGS, WHAT I'VE LOVED ABOUT THE MINDSET OF GRAND RAPIDS IS WE FIRST BUILD IT FOR OURSELVES AND FOR THE CITIZENS HERE, AND MAKING SURE WE'RE DELIVERING A QUALITY OF LIFE AMENITY THAT SERVES US. AND IF OTHERS HAPPEN TO ENJOY IT, SO BE IT. AND THEY FILL OUR HOTEL ROOMS AND IT HAS THAT MULTIPLIER EFFECT. BUT FIRST AND FOREMOST, HOW DO WE ELEVATE THE QUALITY OF LIFE FOR EVERYDAY GRAND RAPIDS? AND I THINK WE'VE DONE THAT. AND I THINK THAT THEN TIES INTO YOUR SECOND COMMENT, WHICH IS, YOU KNOW, HOW DO WE MAKE THIS A PLACE WHERE PEOPLE DON'T JUST MOVE TO AND PASS THROUGH AS A STEPPING STONE IN THEIR CAREER, BUT, BUT REALLY SINK IN AND CREATE ROOTS. AND I SEE THAT I, YOU KNOW, I WORKED IN OMAHA AND DENVER BEFORE COMING BACK TO WEST MICHIGAN AND I, AND SO I WAS GONE FOR TEN YEARS. SO I CAN HAVE THE LUXURY OF SEEING IT THROUGH A DIFFERENT LENS. CANDIDLY, PEOPLE MOVED TO OMAHA FOR A STEP IN TIME OR A MOMENT IN TIME, AND THEN THEN TRANSITION TO THE NEXT POINT IN THEIR CAREER. PEOPLE MOVE TO DENVER WITH THE MINDSET THEY'D BE THERE FOREVER BECAUSE IT OFFERED A QUALITY OF LIFE, AND IT OFFERED SOME OF THE AMENITIES THAT YOU WOULD EXPECT. AND SO THEY STAYED, BUT THEY HAD A CHALLENGE. THEY DID NOT CONTINUE TO DEVELOP AT THE PACE, TO KEEP PACE ON THE HOUSING SIDE, AND THE COST GOT AWAY FROM THEM. AND SO NOW THE YOUNG PEOPLE THAT WERE MOVING THERE COULD NO LONGER AFFORD A PLACE. AND NOW THEY'RE MOVING FROM DENVER TO OTHER MARKETS.
THEY'RE MOVING TO MIDSIZE MARKETS LIKE OURS. AND I THINK IT'S A IT'S A MOMENT FOR TIER TWO CITIES OR TIER 2.5 CITIES, HOWEVER YOU WANT TO SAY IT, WHERE WE STILL FOR EVEN THOUGH HOUSING PRICES HAVE CLIMBED HERE RELATIVE TO THOSE MAJOR METROS, IT'S STILL VERY AFFORDABLE. AS LONG AS WE MAINTAIN THAT THAT PACE OF DEVELOPMENT THAT CAN PROVIDE THE HOUSING SUPPLY. SO IT'S IT'S ALL SORT OF INTERWOVEN, RIGHT? IT'S JOBS, IT'S INCOME, IT'S HOUSING OPPORTUNITIES, IT'S QUALITY OF LIFE AMENITIES. AND THE LAST THING I WOULD SAY IS, YOU KNOW, FOR SOME TIME, THE, THE BIG BULK OF OUR POPULATION GROWTH AS A REGION HAS COME FROM SOUTHEAST MICHIGAN. STUDENTS COMING FROM THE DETROIT AREA THAT GO TO GRAND VALLEY STATE AND THEN STAY HERE AT A HIGH PERCENTAGE, IT'S STARTING TO SHIFT A LITTLE BIT. WE'RE DRAWING MORE FROM CHICAGO, AND IT'S A LITTLE BIT MORE, I THINK, A COMPETITIVE SITUATION FOR US TO RETAIN THEM FROM GOING BACK TO MOM IN CHICAGO VERSUS GOING BACK A LITTLE BIT CLOSER TO DETROIT. SO THAT'S WHY WE GOT TO MAINTAIN THAT EDGE THERE. YEAH, GREAT. GREAT POINTS COMMISSIONER. OKAY. ECONOMICS QUESTION TO YOU. I'M JUST
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JOKING. SORRY. WE'RE HERE SINCE 8:00. SO, YOU KNOW, BY THIS TIME WE'RE A LITTLE PUNCHY, BUT BUT NO, I THINK I WANT TO APPRECIATE IT. AND I'M GLAD I MADE THE SLIDES. THAT WAS A REALLY GREAT EVENT AT DEMATIC. YOU KNOW, I MEAN, I LIVE SIX MINUTES AWAY AND MY FRIEND WORKS THERE AND I'M LIKE, HOW DID I NOT KNOW ALL THIS IS EXISTING BEHIND THESE WALLS WHEN YOU'RE JUST DRIVING UP AND DOWN PLYMOUTH? SO THAT WAS THAT WAS REALLY GREAT. AND I APPRECIATE SEEING ALL THOSE OTHER HIGHLIGHTS AS WELL. AND I AM DEFINITELY GOING TO GO AND DOWNLOAD SOME OF THOSE REPORTS. BUT MY QUESTION IS, YOU KNOW, THERE'S AS WE LOOK AT THIS AND THE PROSPERITY AND THE EXCITEDNESS OF, OF THE DIFFERENT BUSINESSES THAT ARE HERE, AND I THINK YOU CAN'T GO ON LINKEDIN WITHOUT SEEING A TO READ A POST LIKE EVERY OTHER ONE. ONE. I WANTED TO KNOW, HOW ARE THOSE, YOU KNOW, SOME OF THOSE LARGER ORGANIZATIONS, HOW ARE THEY GETTING CONNECTED IN WITH OUR LOCAL SUPPLIER, SUPPLIER NETWORKS LIKE SMALL BUSINESSES? MY HUSBAND JUST TEXTED ME, HEY, CHECK OUT ONE OF OUR FAVORITE BUSINESSES IS SAYING WE NEED YOUR SUPPORT. YOU KNOW, IT'S BEEN CHALLENGING. WE'RE GOING TO HAVE SOME UPDATES ON CONSTRUCTION. WE'VE HAD SOME BUSINESSES WHO'VE BEEN DISPLACED BY FIRE. AND SO, YOU KNOW, WE'RE LIVING IN, I'M HEARING MORE AND MORE THAT WE'RE LIVING IN THIS. WE'RE NOT IN THIS K-SHAPED ECONOMY. WE'RE IN THIS E SHAPED ECONOMY NOW WHERE THERE ARE REALLY MUCH MORE DIVISIONS BETWEEN HIGHER EARNERS, MIDDLE EARNERS AND LOW WAGE EARNERS. AND SO AND THEN ALSO THESE DIFFERENT DYNAMICS THAT ARE PLAYING OUT IN RETAIL AND IN BRICK AND MORTAR RETAIL.AND A LOT OF BUSINESSES THAT I WORK WITH, AND I SEE MARVIN OUT THERE AND THE URBAN LEAGUE WORKS WITH WHO ARE LIKE, WHERE ARE THOSE PEOPLE? HOW DO WE TAP MORE INTO THEM? SO I JUST, I WANTED TO BRING THAT UP TO, TO SEE WHAT YOUR, TO SEE IF THERE'S SOMETHING SPECIFIC THAT SAY, WHEN THOSE BUSINESSES ARE MOVING, HOW DO THEY GET CONNECTED? AND NO OFFENSE TO PANERA BREAD, BUT HOW DO I GET THEM TO BUY FROM FIELD AND FIRE VERSUS PANERA? WHAT ARE THOSE, WHAT THOSE STRATEGIES MIGHT BE? AND THEN KIND OF THIS INCREASINGLY THOUGHT PROCESS ON IT'S NOT SO MUCH K, BUT IT'S MORE E SHAPED ECONOMY. AND WE MIGHT BE LOOKING MORE AT AND LOVE YOUR THOUGHTS FROM AN ECONOMIC POINT OF VIEW. WE'RE LOOKING AT PEOPLE'S INCOMES, BUT MAYBE IT'S WE REALLY NEED TO BE LOOKING AT THEIR WEALTH BECAUSE THAT SPENDING DYNAMIC IS NOT REALLY MAYBE HAPPENING BECAUSE OF WHAT THEIR INCOME IS, BUT MORE THEIR WEALTH. AND WHAT ARE THOSE TRENDS TELLING US AS WELL ABOUT THIS GRAND RAPIDS ECONOMY? SO IT'S SOMETHING THAT I JUST, YOU KNOW, AS, AGAIN, I LIVE THIS LIFE ON FACEBOOK OF THESE SMALL BUSINESSES AND WORKING IN SMALL BUSINESSES, BUT THEN WAS ABLE TO GO TO NOMADIC AND SEE ALL THOSE EXCITING THINGS ARE HAPPENING. SO YEAH, THANKS. AND AGAIN, YOU CAN SAY, MELINDA, THIS CAN BE AN ONGOING CONVERSATION. YEAH. I MEAN, IT'S THERE'S A LOT TO UNPACK THERE, I THINK. SO A COUPLE QUICK THOUGHTS AND THEN MAYBE I'D LIKE A CHANCE TO CONTINUE THE DIALOG ON IT FIRST FROM A, FROM THE ECONOMY CONCEPT, YOU KNOW, FUNDAMENTALLY, OUR PUSH IS TO FIND HIGH QUALITY JOBS THAT PROVIDE A HIGH, HIGH WAGE OR HIGH SALARY THAT CAN CREATE AND SUPPORT A FAMILY, NOT JUST TODAY, BUT GOING FORWARD. AND I WILL TELL YOU, THE JOBS THAT WE'VE BEEN ABLE TO ASSIST CONTINUE TO SET RECORD HIGHS IN TERMS OF WAGE RATES. AS OF THE LAST TIME I CHECKED OUR CRM SYSTEM, THE AVERAGE WAGE OF PROJECTS THAT WAS STARTING WAGES OF PROJECTS WE'VE ASSISTED IS OVER 32 BUCKS AN HOUR, WHICH GETS YOU REALLY CLOSE TO 70 GRAND A YEAR PLUS BENEFITS PLUS BONUS OPPORTUNITY CAN GET YOU MUCH HIGHER. AND THAT'S STARTING RIGHT. SO NOW YOU'RE ON YOUR WAY TO YOU HAVE VISIBILITY TO 100 GRAND. AND AT THAT LEVEL, LIFE STARTS TO SIMPLIFY. THAT'S BEEN OUR PUSH FOR, FOR FROM THE BEGINNING.
AND WE'VE SEEN THAT WAGE GROWTH CLIMB AND ESPECIALLY OF LATE. AND THAT I THINK IT'S HARD TO JUMP TO WEALTH UNTIL YOU HAVE QUALITY INCOME, RIGHT? SO YOU HAVE TO HAVE QUALITY INCOME BEFORE YOU CAN GET TO THAT WEALTH EFFECT. AND SO THAT'S A BIG PART OF IT. WE ALSO ARE LEANING INTO HOW DO WE HELP SOME OF THE PARTS OF OUR COMMUNITY THAT MAYBE HAVE NOT ENJOYED THAT PROSPERITY? SO I'M THINKING OF SOUTH TOWN IN PARTICULAR, WHERE WE'VE LEANED IN AND SUPPORTED GENTEX WHEN THEY BROUGHT THEIR FACILITY OR MCRPC AND THEIR FACILITY IN THE SOUTH TOWN. WE'RE WORKING WITH OTHER PROPERTIES RIGHT NOW THAT I WOULD ARGUE MAYBE ARE UNDERUTILIZED, AND WE'VE ALL DRIVEN BY THESE FACILITIES THAT HAVE FIVE CARS IN A PARKING LOT THAT USED TO HAVE 50. AND SO WE'RE TRYING TO FIGURE OUT IF THERE'S WAYS FOR THOSE TO, TO, YOU KNOW, GO TO THAT SMALL BUSINESS AND SAY, LOOK, YOU'RE EITHER PAYING MORE RENT THAN YOU NEED TO FOR THE SPACE YOU'RE UTILIZING, OR THERE'S A CHEAPER PLACE DOWN THE STREET.
AND WE COULD GET BETTER RENT IN THIS BUILDING AND START TO HAVE SOME OF THOSE THINGS TRANSITION TO CREATE MORE JOB OPPORTUNITIES CLOSER TO THE FOLKS THAT THAT LIVE IN THOSE NEIGHBORHOODS FROM A, HOW DO WE HELP COMPANIES SORT OF WITH THAT BUY LOCAL CONCEPT? AND ADMITTEDLY, WE DON'T HOLD THEIR HANDS ALL THE WAY THROUGH THAT. WE CERTAINLY HAVE CONVERSATIONS WITH THEM TO SAY, WHEN YOU WHEN YOU'RE SICK AND YOU'RE INVESTING IN OUR COMMUNITY, WE JUST REMIND THEM THAT WE ASK PEOPLE TO NOT JUST COME IN AND ENJOY AND SORT OF TAKE FROM
[00:30:05]
WHAT WE'VE DELIVERED AS A COMMUNITY, BUT HELP MAKE US BETTER. AND YOU CAN DO THAT BY SITTING ON AREA BOARDS. YOU CAN DO THAT BY ENGAGING WITH TALENT PIPELINE. YOU CAN DO IT BY BUYING LOCAL. WE DO HAVE A COUPLE OF DIFFERENT SMALL BUSINESS DIRECTORIES ON OUR WEBSITE. WE ALSO PARTNER WITH DIFFERENT CHAMBERS AND CORRIDOR IMPROVEMENT DISTRICTS TO KIND OF PROMOTE THOSE BUSINESSES. BUT I WOULD SAY THAT'S SORT OF A HANDOFF THAT WE MAKE.COUNCILWOMAN. THANK YOU. YEAH. THANKS. MAYOR. JUST REAL QUICKLY, THANK YOU AGAIN FOR THE PRESENTATION. AND I APPRECIATE WHAT THE RIGHT PLACE DOES TO MARKET OUR CITY AND OUR REGION ACROSS THE COUNTRY, ACROSS THE WORLD. AND SO THIS IS THE RIGHT PLACE. I APPRECIATE WHAT EXPERIENCED GRAND RAPIDS ALSO DOES TO MARKET OUR CITY AS A DESTINATION CHAMBER AND OTHER ECONOMIC DEVELOPMENT ORGANIZATIONS. AND THE QUESTION I HAVE IS, WHILE WE LOOKED AT A LOT OF MACRO BIG THINGS HAPPENING, AND AT TIMES THERE, THERE ARE SOME LOCAL THINGS THAT ARE CONCERNING. WE HEAR ABOUT REDUCTION IN WORKFORCE FROM SOME LARGE EMPLOYERS. OR AS COMMISSIONER SASSY SAID, RETAIL CLOSURES FOR BREWERIES AND RESTAURANTS, ETC. OR EVEN EVEN REGARDING SOME CIVIC AND PUBLIC SAFETY ISSUES AROUND HOW WE MIGHT BE EXPERIENCING CIVILITY OR HOUSING AND HOUSING HERE IN THE COMMUNITY, HOW DO YOU ENSURE THAT THE NARRATIVE THAT PEOPLE OUTSIDE THIS COMMUNITY SEES ABOUT OUR CITY IS NOT OUT OF CONTEXT COMPARED TO THOSE OTHER THE MAP THAT YOU SHOWED WHERE PEOPLE ARE GROWING IN MIDWEST, INDIANAPOLIS, CHICAGO, MILWAUKEE, ALL THE OTHERS, DETROIT, ETC. TO ENSURE THAT, OF COURSE, WE ARE A COMMUNITY THAT, YOU KNOW, LARGE URBAN COMMUNITY. WE'RE GOING TO HAVE CIVIC ISSUES, BUT WE'RE STILL A GOOD PLACE TO INVEST. AND BOTH FOR RECRUITING AND RETAINING BUSINESSES. YEAH, THANK CITY MANAGER. I WOULD SAY, YOU KNOW, GOING BACK TO THOSE REPORTS, MARK, AND AND LEADING WITH DATA. SO WE'RE A MARKETING ORGANIZATION IN A SENSE, BUT WE'RE NOT PRETTY PICTURES. IT'S REALLY LET'S START WITH THE DATA AND WHY THE DATA WOULD SUGGEST YOUR BUSINESS OR YOUR FAMILY SHOULD MOVE TO GREATER GRAND RAPIDS. AND IT STARTS WITH THE GROWTH. IT STARTS WITH THE YOUTHFUL NATURE OF OUR DEMOGRAPHIC GROWTH, THE HIGHLY EDUCATED DEMOGRAPHIC GROWTH, AND THEN THE QUALITY OF LIFE AMENITIES THAT WE OFFER THAT KIND OF BRING THIS ALL TOGETHER. AND SO THAT'S SORT OF THE CORE OF OUR PITCH, THE BROADER MARKETING PIECES THAT YOU MIGHT SEE, LIKE OUT OF AN EXPERIENCED GR OR DOWNTOWN GR INC, THOSE ARE GOING TO HAVE A LITTLE BIT MORE OF THAT CLASSIC MARKETING FEEL AND THE VIDEO CONTENT THAT DRIVES MAYBE MORE EYEBALLS. OUR, OUR MARKETING IS A LITTLE BIT MORE TARGETED, A LITTLE BIT MORE PRECISION FOCUSED. AND SO IT'S A LITTLE BIT DEEPER CONVERSATION AROUND THE BUSINESS CASE FOR, FOR MOVING HERE VERSUS THERE OR STAYING HERE VERSUS THERE. I DO THINK, YOU KNOW, AS I MENTIONED, WE HAVE TO WE HAVE TO EARN THOSE FORECASTS. IF YOU THINK BACK TO THOSE MAPS OF MICHIGAN, THE YELLOW, THE RED, YELLOW, GREEN MAPS, WE HAVE TO EARN THAT FORECAST. AND YOU GO BACK TO THE 1980S, WE WERE THE SAME SIZE AS GENESEE COUNTY AND FLINT, AND TODAY THEY'RE STILL THE SAME SIZE THEY WERE BACK THEN. AND WE'VE GROWN BY ABOUT 60%. SO WE HAVE TO BE MINDFUL OF ITS KEEPING THE MOMENTUM THAT WE HAVE TODAY, KEEPING THAT GOING, NOT ALLOWING US TO TAKE THE FOOT OFF THE BRAKE OR OFF THE GAS. AND AS SOON AS WE DO OR THE ACCELERATOR, MAYBE TODAY, AS SOON AS WE PULL BACK ON THE ACCELERATOR, EVERYBODY ELSE GOES BY US. AND THEN TO CATCH UP TAKES A LOT MORE FUEL, A LOT MORE ENERGY TO CATCH UP.
SO WE HAVE TO BE MINDFUL OF IT. I DO GET EMAILS FAIRLY OFTEN ON HOW SOME OF THE UNHOUSED CIVILITY, THE CHALLENGES DOWNTOWN THAT'S UNIQUELY DOWNTOWN HAS HAD AN IMPACT ON INVESTMENT. AND I THINK WE HAVE TO FIND A WAY TO BE, YOU KNOW, SORT OF BRING A GRAND RAPIDS CULTURE TO THAT SOLUTION, BUT ALSO RECOGNIZE IT DOES HAVE AN IMPACT. WELL, YEAH. ALSO, I THINK, YOU KNOW, MAYBE PEOPLE NEED TO GET OUT AND LOOK AT OTHER CITIES A LITTLE MORE OFTEN BECAUSE, YOU KNOW, I THINK I THINK WE'RE DOING GREAT WORK, PARTICULARLY ON THE, ON THE, ON THE UNHOUSED FRONT. AND CERTAINLY I THINK WE'RE A NATIONAL MODEL ON SUCCESS ON THAT. SO THE FACT THAT, YOU KNOW, THAT THAT YOU CAN STILL SEE SOME ISSUES DOESN'T MEAN THAT WE HAVEN'T MADE AMAZING PROGRESS. AND, YOU KNOW, THERE'S A THERE'S A PLAN TO GET US DOWN TO FUNCTIONAL ZERO THERE. SO I THINK TELLING THAT STORY MORE OFTEN IS ALSO IS VERY HELPFUL. BUT I ALSO I WAS IN I HAPPEN TO BE IN ALABAMA FOR A WEDDING LAST WEEKEND. AND ONE OF THE, THE GUY I TALKED TO SAID, SORT OF MOURNFULLY POINTED OUT THAT, YOU KNOW, I FORGET WHAT DATE IN THE 60S OR EARLY 70S, MAYBE BIRMINGHAM AND ATLANTA WERE THE SAME SIZE. AND HE SAID, WELL, ATLANTA BUILT AN AIRPORT AND WE DIDN'T. AND SO THAT WAS HIS STORY OF ATLANTA'S
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SUCCESS WAS GETTING SERIOUS ABOUT HAVING AN AIRPORT. SO THAT'S THAT WASN'T PART OF YOUR PURVIEW HERE. BUT I HOPE THAT'S PART OF YOUR SALES PITCH. LIKE, ARE WE ARE INVESTING IN OUR AIRPORT REGIONALLY AND, YOU KNOW, OUR AIRPORTS GROWING. AND I THINK THAT'S PROBABLY A KEY ECONOMIC DRIVER TOO. AND LIKE YOU SAID, YOU ONLY HAD 12 MINUTES. NO, BUT WE'RE ACTIVELY WORKING WITH THE AIRPORT TO RECRUIT MORE NONSTOP FLIGHTS AS WE SPEAK. AND SO WE'VE GOT WE DID A BIG SURVEY OF THE AREA INDUSTRY LEADERS, AND WE'VE IDENTIFIED THE MARKETS THAT ARE IN THE HIGHEST DEMAND, AND WE'RE GOING AFTER TO MAKE THE CASE FOR THEM TO OPEN UP NONSTOP FLIGHTS HERE. SO THAT'S PART OF IT. YEAH. AND IF YOU CAN FIND OUT, YOU KNOW, FIND A ROUTE TO EXPLAIN TO THE POSTMASTER THAT AIRPORTS SHOULD HAVE POST OFFICES FACILITIES NEARBY THEM AND THAT THEY'RE NOT RIVER DEPENDENT. WE'RE NOT HARDLY ANY OF OUR MAIL GOES BY RIVER ANYMORE. THAT'D BE GREAT TO. ALL RIGHT. ANYWAY. THANKS. SO NEXT UP WE HAVE DEVELOPMENT[2. Development Center Report – July 2026]
CENTER REPORT. WE DIDN'T PUT YOU AT THE END THIS WEEK. THAT'S RIGHT. I GET TO BE RIGHT IN THE MIX OF IT ALL. THAT'S GREAT. THANK YOU SIR. ALL RIGHT. THANK YOU. I'M JONATHAN OVERMAN.I AM THE ADMINISTRATIVE SERVICE OFFICER FOR THE CITY'S DEVELOPMENT CENTER. AND TODAY'S UPDATE, I'M GOING TO HIGHLIGHT A COUPLE OF THE PROJECTS THAT ARE SHAPING THE GRAND RAPIDS GROWTH AND DEVELOPMENT, A FEW OF THE TRENDS INFLUENCING OUR WORK AT THE DEVELOPMENT CENTER, AS WELL AS SOME OF THE PROJECTS ON THE HORIZON. WE HOPE TO INFORM YOU ABOUT. LET'S SEE, STARTING AGAIN WITH KIND OF ONE OF THE MARQUEE PROJECTS THAT WE HAVE GOING ON IN THE CITY.
WE'RE VERY FAMILIAR WITH SOME OF THE STATS AROUND IT, BUT I HAD THE OPPORTUNITY TO SHADOW ONE OF OUR BUILDING INSPECTORS RECENTLY AS HE DID HIS WALK THROUGH, AND IT'S JUST IMPRESSIVE TO BE IN THAT STRUCTURE AND TO SEE HOW IT'S COMING ALONG. AND IT'S GOING TO BE JUST A REMARKABLE PLACE TO WATCH A GAME AND EXPERIENCE CITY OF GRAND RAPIDS WITH IT.
THIS PROJECT IS MOVING ALONG AS PROJECTED, WORKING WITH SOME OF THE PROJECT MANAGERS. AS I GOT TO WALK THROUGH THE PROJECT AND EVERYTHING'S LOOKING TO BE ON TARGET TO OPEN FOR THE 2027 SEASON. NEXT PROJECT I WANTED TO HIGHLIGHT IS THE BEACON HILL EXPANSION. THIS INDEPENDENT LIVING COMMUNITY IS EXPANDING BY 101 NEW INDEPENDENT LIVING UNITS, AS WELL AS 48 ASSISTED LIVING UNITS. THIS PROJECT IS SLATED TO OPEN LATER THIS FALL, AND IT CONTINUES TO EXPAND OUR SENIOR LIVING CAPACITY IN THE CITY OF GRAND RAPIDS. NEXT PROJECT I WANTED TO HIGHLIGHT THAT'S ALSO CLOSE TO COMPLETION IS THE JOAN SECCHIA CHILDREN'S REHAB CENTER FOR MARY FREE BEDS CAMPUS. THIS SPECIAL. THIS ADDITION ADDS A SPECIALIZED THERAPY GYM, A FAMILY RESOURCE CENTER, AND ADDITIONAL 24 PRIVATE ROOMS FOR PEDIATRIC REHAB SERVICES. AND THE LAST PROJECT I WANTED TO HIGHLIGHT IS THE NEW GRT ELEMENTARY SCHOOL ON ABERDEEN. THIS PROJECT DELIVERS A 6300 ZERO SQUARE FOOT SCHOOL, DELIVERING A MODERN LEARNING ENVIRONMENT FOR UP TO 450 PRE-K TO FIFTH GRADE STUDENTS. ALSO SLATED TO OPEN IN FALL OF 2027. AND I WANT TO TURN TO SOME OF THE CONSTRUCTION TRENDS THAT WE SEE IN OUR CITY. GRAND RAPIDS IS OUTPACING THE NATIONAL CONSTRUCTION TRENDS, ESPECIALLY AFTER COVID HIT OUR COMMUNITY FAIRLY HARD IN 2020. WE'VE EXPERIENCED A SURGE OF GROWTH IN THE LAST FEW YEARS, ESPECIALLY WITH RECORD SETTING YEARS IN 2025 OF JUST UNDER $1 BILLION IN CONSTRUCTION VALUE.
LOOKING AT THE CONSTRUCTION INDEX COMPARED TO THE US INDEX, WE SEE THAT COVID DID IN FACT HIT OUR DEVELOPMENT SIGNIFICANTLY, BUT WE'VE REBOUNDED AND NOW ARE CLEARLY OUTPACING THAT GROWTH. LOOKING BEYOND JUST CONSTRUCTION VALUE, THE DEVELOPMENT CENTER IS VERY ACTIVE IN APPLICATION VOLUME. THIS KIND OF DRIVES THE WORKLOAD THAT OUR STAFF IS UNDER AND THE INSPECTION SERVICES THAT FOLLOW THROUGH THAT. WE HAD A SLOW FIRST QUARTER, BUT BY MARCH WE WERE ABOVE AVERAGE. AND THIS SPRING AND SUMMER SURGE HAS CONTINUED TO SHOW THAT ABOUT A QUARTER OF THESE APPLICATIONS ARE IN OUR MECHANICAL DIVISION. AND THIS ACTIVITY REFLECTS A CONTINUED DEVELOPMENT ACTIVITY IN THE CITY, FOCUSING ON SOME OF THE CHALLENGES NATIONALLY. IT'S NO BREAKING NEWS THAT SKILLED TRADE CAPACITY AND RISING MATERIAL COSTS ARE A KEY FACTOR IN SOME OF THE THINGS THAT WE'RE FACING LOCALLY. WE FEEL THIS MOST IN OUR INSPECTION SERVICES. WE HAVE THREE VACANCIES CURRENTLY THAT WE ARE WORKING DILIGENTLY TO TRY TO FILL. IN PART, THIS IS RELATED TO THE LIMITED TRADE PEOPLE WHO
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ARE ELIGIBLE TO REGISTER AS A MECHANICAL INSPECTOR. THE STATE MANDATES THAT MECHANICAL TECHNICIAN HAVE AT LEAST THREE OF FOUR LICENSES TO BE QUALIFIED TO BECOME A MECHANICAL INSPECTOR, BUT ONLY ABOUT 75 OR 25% OF THESE PROFESSIONALS HAVE THOSE QUALIFICATIONS ACROSS THE STATE. THESE CONSTRAINTS DIRECTLY LIMIT OUR INSPECTIONS CAPACITY AND SLOW DOWN OUR PERMIT TIMES, BECAUSE WE'RE UNABLE TO FILL SOME OF THESE KEY POSITIONS.CITY STAFF IS CURRENTLY ACTIVELY ADVOCATING FOR A LOT OF DIFFERENT CHANGES, BOTH ON LONG TERM FRONTS AND SHORT TERM FRONTS, LEVERAGING PARTNERSHIPS WITH KENTWOOD AS WELL AS SAFE CONSTRUCTION INSPECTION SERVICES. BUT ONE OF THE THINGS WE'RE CURRENTLY FOCUSED ON IS REGULATORY UPDATES FROM THE STATE. THANKFULLY, ON SEPTEMBER 10TH, LAURA WILL BE HOLDING PUBLIC HEARINGS TO SUPPORT CHANGES TO THE SKILLED TRADE REGULATION RULES THAT WOULD REDUCE THIS REQUIREMENT OF THREE OF FOUR DOWN TO TWO OF FOUR, GREATLY INCREASING OUR CAPACITY FOR POTENTIAL CANDIDATES. AT THIS HEARING, WE ARE ENCOURAGING STAKEHOLDERS TO ENCOURAGE SWIFT ADOPTION OF THESE RULE SETS TO SUPPORT THESE NEEDED CHANGES FOR US.
DESIGN DESPITE THESE CHALLENGES AND DEVELOPMENT, WE STILL SEE A LOT OF DEVELOPMENT ON THE HORIZON. ONE OF THE ONES I WANTED TO KIND OF HIGHLIGHT THIS THIS DAY IS THE PERMIT READY PLANS PROGRAM THAT THE CITY RECENTLY ADOPTED. WE HAVE THREE LOCATIONS THAT ARE CURRENTLY IN REVIEW FOR SOME OF THE DUPLEX PLANS THAT WE'VE SUPPLIED. THESE PERMIT READY PLANS HELP EXPEDITE THE REVIEW PROCESS SO THAT THEY CAN GET TO CONSTRUCTION QUICKER. AND WE'VE GOT TWO OF THEM THAT ARE ABOUT TO LAUNCH, I THINK, THIS WEEK. EVEN FURTHER DOWN ON THE HORIZON, COREWELL HEALTH HOSPITAL EXPANSION ON MICHIGAN IS EXPECTED TO INCREASE BY 621,000 SQUARE FOOT FACILITY, PROVIDING ANOTHER 180 PRIVATE ROOMS AND UP TO 16 LARGE OPERATION CENTERS. THIS IS ANOTHER SIGNIFICANT INVESTMENT IN OUR COMMUNITY'S HEALTH CARE INFRASTRUCTURE. AND LAST IS THE FULTON MARKET MIXED USE PROJECT, WHERE WE ARE ANTICIPATING THREE NEW TOWERS HIGH RISE TOWERS WITH RESIDENTIAL CONDOS AND HOTELS AND OFFICES. THE PROJECT WILL DELIVER ABOUT 600 HOUSING UNITS, DINING EXPERIENCES, RETAIL SPACES AND CREATING A VIBRANT SPACE FOR BOTH RESIDENTIAL AND VISITORS IN THE AREA. AND WITH THAT, I'LL OPEN.
ANY QUESTIONS? YEAH. CITY MANAGER AGAIN, YOU WERE JUMPING FOR YOUR MIC. YOU'RE HAPPY TO LET YOU GO FIRST. I JUST WANTED TO CLARIFY, IN ADDITION TO THE LAW, REGULATORY CHANGE, WE MAY BE ASKING OUR LEGISLATIVE COMMITTEE TO SUPPORT SOME LEGISLATIVE CHANGES. AND MAYBE THIS COULD SPEAK TO THAT WHEN SHE COMES EITHER NOW OR HER NEXT SEGMENT, WHICH SHE'S PART OF THE PRESENTATION. BUT WE'RE TRYING TO REALLY BE AGGRESSIVE AND LOWER THE FLOOR OR BARRIERS TO ENTRY IN TERMS OF THE WORKPLACE. I WISH I WOULD HAVE ASKED MR. MARAS OR THEILEN WHAT THEY'RE SEEING ALSO, AND THE IMPACT OF DEVELOPMENT ON THE SKILLED TRADES AND SKILLED TRADES, AS IT'S NOT UNIQUELY AFFECTING GRAND RAPIDS. BUT CAN YOU REMIND ME NOW WHAT WE'VE USED THIRD PARTIES AS WELL. NOW, TO SUPPLEMENT OUR CURRENT WORKFORCE, WE'VE ADDRESSED SOME SALARY ISSUES. WHAT IS THE PERMIT TIMING TURNAROUND IN TERMS OF INSPECTIONS. SO FOR MECHANICAL PLAN REVIEW IT'S WE'RE OUT ABOUT A MONTH RIGHT NOW WITH PLAN REVIEW TO GET THOSE NOTES BACK TO THE DEVELOPER FOR INSPECTIONS. WE ARE SCHEDULING OUT ABOUT FOUR WEEKS AS WELL, ALTHOUGH STAFF IS OFFERING UP WHAT WE CALL AS SOON AS POSSIBLE OPTIONS FOR CONTRACTORS SO THAT IF OUR GUY HAPPENS TO BE IN THAT NEIGHBORHOOD ON THAT STREET AND CAN QUICKLY FIT THEM IN, HE CALLS THEM AND TRIES TO SQUEEZE THAT IN ON A GIVEN DAY TO TRY TO SHORTEN THAT TIME GAP FOR FOLKS. AND IF I RECALL THAT AT OUR HIGHEST POINT, HOW FAR OUT WERE WERE INSPECTIONS? FIVE WEEKS OUT. SO WE'RE STILL KIND OF RIGHT THERE. WE'RE TRYING TO PULL ANY HELP WE CAN FROM NEIGHBORING COMMUNITIES. WHAT'S HELPING US QUITE A BIT. AND THEN OUR THIRD PARTY, SAFE BILL. SO, YES, I'M ASKING THIS COMMITTEE, AS WELL AS OUR COMMISSION AND OTHER LEGISLATORS TO REALLY TAKE A LOOK IN SUPPORTING SOME TYPE OF ADMINISTRATIVE OR LEGISLATIVE FIX FOR. WELL, YEAH. AND I THINK THIS IS SOMETHING WE REALLY HAVE TO WE REALLY HAVE TO THINK ABOUT BECAUSE IF YOU THINK ABOUT THE COST OF THOSE PROJECTS AND THE ABILITY TO SPEED UP TIMELINES, LIKE IT DOESN'T COST THE CITY ANYTHING, BUT IT SURE COSTS THE COMMUNITY WHEN THINGS ARE SLOWED DOWN. AND SO I HESITATE TO EVEN DO
[00:45:02]
THE BACK OF THE NAPKIN MATH ON WHAT THE COST IS BECAUSE IT'S BIG. AND SO WE DON'T WANT TO BE PENNY WISE AND POUND FOOLISH. AND IT'S OF COURSE NOT JUST THE TIME VALUE OF MONEY ON THESE PROJECTS. IT'S THE POTENTIAL CHILLING EFFECT, RIGHT? LIKE WE WANT TO BE. I HEAR GREAT THINGS ABOUT PEOPLE'S EXPERIENCE WITH OUR PEOPLE. BUT YOU KNOW, IF WE GOT A CAPACITY PROBLEM, IT'S TOUGH TO FEEL GOOD ABOUT TALKING TO A GHOST. SO YEAH, I THINK WE SHOULD, WE SHOULD CONTINUE TO LIKE, REALLY, REALLY THINK ABOUT EVERY POSSIBLE SOLUTION WE CAN COME UP WITH HERE, EVEN IF THEY'RE, EVEN IF THEY'RE 2 OR 3 MONTH BAND-AIDS ON WHAT'S A STRUCTURAL LONG TERM THING THAT NEEDS FIXING. SO BUT THANK YOU. I MEAN, I KNOW, I KNOW, I'M PREACHING TO THE CHOIR, SO I'M NOT TRYING TO MAKE THAT A CRITICISM. JUST LIKE A LET'S ELEVATE THIS. THIS IS A, THIS IS A BIG PROBLEM. SO I APPRECIATE IT. THE ONE THING I'D LIKE TO TALK ABOUT A LITTLE MORE POSITIVELY, I LOVE THE THE FACT THAT WE'RE GETTING UPTICK ON THE PERMIT READY DUPLEXES. THAT'S GREAT. AND JUST FOR ALL YOU OUT THERE IN TV LAND, THESE ARE PROJECTS THAT ARE COSTING ABOUT $300,000 A PARCEL. WELL, YOU DIVIDE THAT. THAT'S $150,000 A UNIT. WHEN WE TALK ABOUT THE AVERAGE COST OF A, OF A, AN INDIVIDUAL HOMEOWNERS HOME IN GRAND RAPIDS, IT'S WAY NORTH OF $150,000. SO WE'RE TALKING ABOUT NEW BUILD CONSTRUCTION PLACES THAT ARE COMING IN BY ALMOST ANYBODY'S DEFINITION OF AFFORDABILITY.THAT'S, YOU KNOW, A 6% LOAN, 150 GRAND IS $9,000 A YEAR, WHICH TURNS OUT TO BE ABOUT 800 BUCKS A MONTH. SO LIKE THE CARRYING COST OF LIKE OWNING THAT HOME IN TERMS OF THE INTEREST ON THE WHOLE THING WOULD BE $800 A MONTH. SO OF COURSE, THERE ARE ACCESS TO CAPITAL QUESTIONS AND WHAT YOUR CREDIT SCORE IS AND ALL THAT. BUT ALL OF AFFORDABILITY REALLY HAS A CONSTANT INTERPLAY WITH THE COST OF CONSTRUCTION. AND, YOU KNOW, I'M WORKING ON A PROJECT MYSELF AND I PAID MORE THAN $10,000 TO AN ARCHITECT FOR WHAT SEEMED TO ME TO BE A VERY SIMPLE PROJECT. SO I LOVE THE IDEA OF PERMIT READY THINGS THAT PARTICULARLY OUR SMALL DEVELOPERS CAN USE, BECAUSE IF WE CAN SAVE THEM $10,000 WORTH OF MONEY ON A PROJECT, EVENTUALLY THAT TURNS INTO AFFORDABILITY FOR THE HOMEOWNER OR THE RENTER OR WHATEVER, LIKE SAVING MONEY IS JUST MONEY THAT WE GET TO PASS THOSE SAVINGS ALONG TO THE CONSUMER. LIKE EVERY INFOMERCIAL HAS EVER SAID. SO. SO I THINK THAT'S GREAT. I WOULD LOVE TO, I DON'T KNOW, AND I DON'T WANT TO PUT YOU ON THE SPOT, BUT IF WE DON'T ALREADY, I WOULD LOVE TO SEE SOME WORK DONE. ON MAYBE WORKING ON THE SAME IDEA FOR DOWN THE ROAD FOR LIKE TRIPLEXES. AND, AND I KNOW WE'RE TALKING ABOUT IT, THINKING ABOUT IT LONG TERM FOR ADUS TOO, BUT LIKE THE MECHANISM OF MAKING IT EASIER, GREASING THE WHEELS, LIKE, YOU KNOW, GETTING THE WHOLE PROCESS EASIER IS THAT'S OUR FREE LUNCH, RIGHT? AND IF WE AS A CITY CAN GIVE THAT TO THE COMMUNITY, WE'RE JUST PROVIDING A WHOLE HUGE BENEFIT TO THE COMMUNITY.
SO THANKS FOR DOING IT. THANKS FOR WORKING ON IT. THAT'S GREAT. IF I CAN ASK, HOW DID THAT HAPPEN? LIKE, DID YOU ALL HAVE TO HIRE AN ARCHITECT? I SEE KRISTEN'S COMING UP BECAUSE LIKE A FRIEND ON THAT. YEAH. LIKE, DID YOU HAVE TO THE CITY INVEST IN SOME ARCHITECTS TO COME UP WITH THIS? DID WE STEAL THEM FROM OMAHA, NEBRASKA? LIKE, WHAT DID WE DO? NEITHER OF THE ABOVE, THE PLANNING DEPARTMENT AND ECONOMIC DEVELOPMENT DEPARTMENT PARTNERED WITH THE MEDICI, AND THE MEDICI ACTUALLY SUPPORTED THE CITY AND HIRED. THEY HIRED THE ARCHITECT AND WORKED WITH OUR DEPARTMENT PLANNING AND BUILDING DEPARTMENT TO DEVELOP THE PERMIT READY PLAN. SO THAT'S GREAT. SO DO WE HAVE AN ONGOING RELATIONSHIP THERE? IS THAT SOMETHING WE CAN KEEP WORKING ON? NEW IDEAS ON, LIKE TRIPLEXES OR QUADS OR SO WE HAVE. WE CURRENTLY HAVE SINGLE FAMILY PLAN SETS, DUPLEXES AND QUADPLEXES THERE. I THINK IT'S CERTAINLY SCALABLE FOR SOMETHING THAT WE CAN CONTINUE. THERE IS NO ONGOING OR CURRENT CONTRACT IN PLACE, BUT IT'S DEFINITELY SOMETHING THAT WE HAVE BEEN TALKING ABOUT WITH THE MADC ABOUT FURTHERING THE ADDITIONAL HOUSING OPTIONS RELATIVE TO THE PERMIT READY PLANS. YEAH, I MEAN, I THINK AGAIN, ALWAYS, ALWAYS MORE, MORE AND MORE AND BETTER AND BETTER. I THINK TRIES ARE AN INTRIGUING POSSIBILITY JUST BECAUSE A TRADITIONAL PITCHED ROOF THING, YOU CAN GET A SMALL UNIT UP IN YOUR UP IN THE PITCHED ROOF SPACE. AND THAT, YOU KNOW, I SPENT A LOT OF TIME IN PROVIDENCE, RHODE ISLAND, BECAUSE I GOT RELATIVES THERE.
PROVIDENCE IS A TOWN OF TRIPLEXES, AND I CAN'T OFFHAND NAME A TRIPLEX THAT I KNOW OF IN GRAND RAPIDS. SO ANOTHER TOOL IN THE TOOLBOX, LIKE I'M NOT SAYING QUADS ARE BAD OR DUPLEXES ARE BAD. LIKE WE SHOULD BE DOING ALL OF THE ABOVE. BUT THE MORE WE CAN THINK ABOUT FLEXIBLE OPTIONS LIKE THAT WOULD BE GREAT. ABSOLUTELY OPEN TO THAT. YEAH.
AWESOME. THANK YOU. ANY OTHER QUESTIONS OR COMMENTS? GREAT. THANKS SO MUCH. AND THAT BRINGS
[3. Briefing on Federal Opportunity Zones Program Updates]
US TO OUR LAST PRESENTATION, WHICH IS ON OPPORTUNITY ZONES AND OPPORTUNITY ZONES 2.0.[00:50:05]
BECAUSE THERE'S BEEN SOME MOVEMENT ON FEDERAL LEGISLATION. AND SO WE'RE GOING TO GET BIG, BEAUTIFUL OPPORTUNITY ZONES. WE'RE GOING TO MAKE OPPORTUNITY ZONES GREAT AGAIN. HI, EVERYBODY. HELLO. YES. OH, SORRY. HI, EVERYBODY. I AM GOING TO GIVE YOU JUST A REALLY BRIEF OVERVIEW OF OPPORTUNITY ZONES 2.0. AND JUST AS A REMINDER, THESE WERE CREATED BY THE 2017 TAX CUTS AND JOBS ACT WITH A SIMPLE GOAL TO ENCOURAGE LONG TERM PRIVATE INVESTMENT IN ECONOMICALLY DISTRESSED COMMUNITIES. GRAND RAPIDS HAD EIGHT CENSUS TRACTS THAT WERE DESIGNATED IN 2018, AND THOSE WILL BE CONTINUE TO BE RECOGNIZED THROUGH THE END OF DECEMBER. SO DECEMBER 31ST OF 2028. SO THOSE WILL STILL CONTINUE IN THOSE EIGHT CENSUS TRACTS. BUT THE ONE BIG BEAUTIFUL BILL ACT IN 2025 DID MAKE THIS INCENTIVE PERMANENT.AND NOW NEW CENSUS TRACTS WILL BE DESIGNATED THIS YEAR. AND THEN SUBSEQUENTLY EVERY TEN YEARS, THERE WILL BE A DESIGNATION PROCESS. AND PART OF THAT PROCESS IS THE FEDERAL GOVERNMENT DETERMINES WHICH CENSUS TRACTS IN EACH STATE ARE ELIGIBLE, AND THEN THE STATE IS ABLE TO. I'M SORRY I DIDN'T ADVANCE THE SLIDE. SORRY. THANK YOU. THE STATE IS THEN ABLE TO DESIGNATE UP TO 25% OF THOSE ELIGIBLE CENSUS TRACTS THAT THE FEDERAL GOVERNMENT HAS DETERMINED AS ELIGIBLE. SO FOR GRAND RAPIDS, WE HAVE 20 THAT HAVE BEEN DETERMINED, ELIGIBLE, AND FOR THE STATE, THE GOVERNOR CAN NOMINATE 214 CENSUS TRACTS STATEWIDE, AND THOSE NEW ZONES WILL TAKE EFFECT ON JANUARY 1ST OF 2027. SO FOR THIS INCENTIVE, THE INVESTOR BENEFITS ARE THINGS LIKE DEFERRAL OF CAPITAL GAINS TAX, REDUCTION IN THE TAXABLE GAIN, AND THEN POTENTIALLY NO TAX ON FUTURE GAINS. IF YOU DO HOLD THE INVESTMENT FOR AT LEAST TEN YEARS, ALL OF THE APPRECIATION THAT'S GENERATED WITHIN THE FUND CAN BE COMPLETELY TAX FREE, INCLUDING AVOIDING AVOIDING THAT DEPRECIATION RECAPTURE. SO IN THE CITY, SOME OF THE AREAS WHERE WE'VE SEEN SOME INVESTMENT AND DEVELOPMENT OCCUR IS BOSTON SQUARE, TAPESTRY SQUARE AND FACTORY YARDS. JUST AS SOME EXAMPLES. SO THE CITY OF GRAND RAPIDS WILL BE SUBMITTING ALL 20 ELIGIBLE CENSUS TRACTS FOR OPPORTUNITY ZONE 2.0 DESIGNATION AND A PRIORITIZED LIST, REFLECTING THOSE AREAS WHERE INVESTMENTS ARE DRIVEN BY THE OPPORTUNITY ZONE DESIGNATION THAT WILL HAVE THE GREATEST ALIGNMENT WITH OUR EXISTING CITY COMMUNITY MASTER PLAN, AND THEN ALSO OUR ECONOMIC DEVELOPMENT PRIORITIES.
AND THEN THE FOUR CATEGORIES THAT MEDC, WHICH IS THE LEAD STATE AGENCY FOR THIS DESIGNATION PROCESS, THE CATEGORIES THAT THEY'RE GOING TO BE USING ARE HOUSING REVITALIZATION AND INVESTMENT, INVESTMENT POTENTIAL TARGETING, AND THEN MAKING SURE THERE'S STATE WIDE GEOGRAPHIC EQUITY. AND THERE IS A AUGUST 19TH DEADLINE TO GET THE RECOMMENDATIONS THAT LOCAL ENTITIES MIGHT HAVE TO MAKE. AND THEN FINALLY, I'M GOING TO ASK RYAN KILPATRICK TO COME UP AND JUST TALK A LITTLE BIT ABOUT THIS IS OUR CENSUS TRACT MAP. SO I'LL LET I'M GOING TO TURN IT OVER TO RYAN. THANKS, KAREN. I KNOW WE'RE SHORT ON TIME, SO I'LL KEEP THIS QUICK TO LEAVE TIME FOR QUESTIONS. GENERALLY WHAT WE'RE SEEING HERE IS ALL 20 CENSUS TRACTS COLOR CODED IN ORDER OF PRIORITY, BASED ON BOTH THE FEDERAL REQUIREMENTS AND THE STATE SCREENING CRITERIA. SO DARK GREEN WOULD BE THE TOP FIVE PRIORITY CENSUS TRACTS. FROM THE CITY'S PERSPECTIVE, LIGHT GREEN IS THE SECOND TIER OF PRIORITY. AND AGAIN, WHAT WE'RE REALLY WANTING TO SEE IS HOW DO THESE CENSUS TRACTS ALIGN WITH THE FEDERAL POVERTY STANDARDS AND LOW INCOME STANDARDS AS OUTLINED IN THE FEDERAL STATUTE? AND THEN HOW DO THEY ALIGN WITH THE COMMUNITY MASTER PLAN WITH POTENTIAL FOR INVESTMENT, WITH THE AVAILABILITY OF LAND FOR LARGE SCALE INVESTMENT, BECAUSE THE OPPORTUNITY ZONE TENDS TO ATTRACT LARGER CAPITAL FROM OUTSIDE OF THE COMMUNITY, REALLY WANTED TO PRIORITIZE THOSE CENSUS TRACTS THAT ARE MOST LIKELY TO BE READY BASED ON COMMUNITY MASTER PLAN AND AREA SPECIFIC PLAN. SO HAPPY TO CHAT THROUGH THE MAP. OR KAREN CAN ANSWER ANY QUESTIONS ABOUT THE STATE OR FEDERAL GUIDELINES. I'M SURE MY COLLEAGUES ALL BOTH
[00:55:02]
NOTICE THAT YOU'VE GOT THE WARD LINES WRONG. I DON'T WANT TO. I'M LOOKING FORWARD TO VOTING IN THE SECOND WARD, NOT IN THE THIRD WARD. YOU'VE. YOU'VE GOT THE THIRD WARD GOING TWO BLOCKS NORTH OF FULTON. OOPS. YEAH. APOLOGIES FOR THAT. WHAT WE WANT TO DO IS TRY TO COLOR CODE THIS AS QUICKLY AS WE COULD. YEAH, YEAH, YEAH. IT'S THE, IT'S THE, IT'S THE ZONES THAT MATTER. SO ANY. OTHERWISE IT LOOKS LIKE COMMISSIONER KILGORE GETS ALL OF THE OPPORTUNITY ZONES. WHAT DID I SAY EARLIER? FINALLY. YEAH. SO THE ONLY QUESTION I WOULD HAVE WOULD BE THE GRANVILLE CORRIDOR. LIKE WHY? HOW DID THAT SCORE THERE? AND AM I SEEING IT? YEAH. SO THE, THE GRANVILLE CORRIDOR IS CENSUS TRACT 26. SO THAT WOULD BE RIGHT IN HERE. AND SO THAT WOULD BE TOP PRIORITY. THAT INCLUDES FACTORY YARDS AND EVERYTHING ON THE GODFREY CORRIDOR AS WELL. GREAT. MAYOR, IF I COULD FIRST OF ALL, THANK YOU, MISS FERRICK AND MR. KILPATRICK FOR YOUR YOUR WORK ON THIS. I KNOW A LOT OF WORK PRECEDED THIS. AND YOU'RE JUST GIVING US THE CLIFF NOTES OF SOME OF THE WORK THAT'S GOING TO GO INTO THE APPLICATION. SO I APPRECIATE THAT. THE SECOND THING I WANT TO SAY, WE SPEAK A LOT ABOUT THE TOOLS THAT WE OFFER AT THE LOCAL LEVEL, WHETHER IT'S TIFS OR BROWNFIELDS. AND WE TALK A LOT ABOUT THE MEDC WORK. SO IT'S GOOD TO SEE THAT THERE'S ADDITIONAL INCENTIVES THAT WILL HELP US WITH ATTRACTION AND RETENTION AT THE FEDERAL LEVEL, AND I'M HOPEFUL THAT WE WILL GET AWARDED OUR FAIR SHARE OF CENSUS TRACTS IN THIS NEW ROUND. SO I'M HOPEFUL THAT THAT WILL TAKE PLACE, AND I APPRECIATE THE UPDATE IN FULL TRANSPARENCY, LETTING US KNOW WHAT WHAT WAS TEMPORARY LAST TIME HAS A GREAT OPPORTUNITY TO BECOME PERMANENT. YEAH. COMMISSIONER. SASSY.ADMITTEDLY, I DON'T KNOW THAT MUCH ABOUT OPPORTUNITY ZONES, SO THIS WAS REALLY HELPFUL.
THANK YOU. AND I DIDN'T KNOW SOME OF THOSE DETAILS ABOUT THE PERMANENCY, BUT COULD YOU SHARE WHO HAVE DO WE KNOW WHO HAVE BEEN INVESTORS IN THE PAST IN THESE ZONES? AND JUST LIKE YOU SAID, THAT TYPICALLY IS GETTING SOME OUTSIDE INVESTMENT. I'M JUST WONDERING IF SPECIFICALLY, YOU KNOW, THERE'S A LOT OF THERE'S GOING TO BE A LOT OF CHANGES POTENTIALLY TO THE, THE CRA, TO THE COMMUNITY REVITALIZATION ACT. AND SO I WONDER, ARE CERTAIN BANKS, TYPICALLY INVESTORS IN THESE SPACES, AND THEN THEY'RE GETTING CRA CREDIT, AND THEN MAYBE THEN THEY'RE GETTING SOME OF THESE BENEFITS THAT ARE NOTED. BUT IF THEY'RE IF SOME BANKS AREN'T GOING TO BE REQUIRED TO INVEST AT THAT LEVEL ANYMORE, IS THAT GOING TO GO? THAT MAY OR MAY NOT BE TRUE, BUT I JUST WONDERED THAT PERSPECTIVE. THANKS. THANK YOU.
OKAY. SO GENERALLY INVESTORS IN OPPORTUNITY FUNDS ARE HIGH NET WORTH INDIVIDUALS WITH A LOT OF CAPITAL GAINS TAX THAT THEY NEED TO DEFER. AND SO IT'S TYPICALLY NOT A BANK. IT'S, IT'S GOING TO BE AN INDIVIDUAL INVESTOR OR A CORPORATE INVESTOR THAT HAS EXPERIENCED A LOT OF GAINS OVER THE PREVIOUS TAX YEAR OR PREVIOUS THREE TAX YEARS. AND THEY THEN PUT THEIR DOLLARS INTO AN OPPORTUNITY FUND. AND THAT FUND THEN COULD PARTNER WITH A BANK AND CRA DOLLARS TO INVEST IN A NEIGHBORHOOD OF FOCUS OR A PRIORITY CENSUS TRACT AND OPPORTUNITY FUND MUST ALWAYS INVEST IN A QUALIFIED OPPORTUNITY ZONE. SO WHEN WE PUT WHEN PROJECTS COME BEFORE US, CERTAINLY THAT THAT ARE MARKET PROJECTS. AND THIS COULD BE ANOTHER TOOL FOR INVESTMENT. BUT WHEN WE HAVE PUBLIC PRIVATE PARTNERSHIPS, THIS COULD MAKE IT EASIER FOR PRIVATE DOLLARS TO BE PART OF THE STACK WITH THE FEDERAL INCENTIVES THROUGH THE OZS. YEAH. SO GENERALLY, I THINK WHAT WE'LL SEE IS THE OPPORTUNITY FUND AND OPPORTUNITY ZONE STATUS WON'T MAKE ANY PROJECT PENCIL ALL BY ITSELF. IT WILL TYPICALLY BE PAIRED WITH A NEW MARKET TAX CREDIT, A LOW INCOME HOUSING TAX CREDIT, COMMUNITY REVITALIZATION GRANT, SOMETHING LIKE THAT WILL WILL BE PAIRED WITH IT. BUT I THINK IN A LOT OF INSTANCES, WE'VE GOT PROJECTS THAT ARE RIGHT ON THE MARGIN WHERE THEY DON'T QUITE WORK IN THE DEVELOPERS TRYING TO FIGURE OUT HOW DO WE MAKE THIS HAPPEN. AND THEY'RE TRYING TO ACCOMMODATE THE EXPECTATIONS OF THE NEIGHBORHOOD TO ENSURE THAT THERE'S COMMUNITY BENEFIT.
THE OPPORTUNITY ZONE STATUS WILL LIKELY HELP SOME OF THOSE PROJECTS BECOME MORE FINANCIALLY VIABLE AND MOVE FORWARD IN ALIGNMENT WITH THE COMMUNITY MASTER PLAN. AND I THINK, WHAT IF I RECALL EARLIER, THERE WAS A LOT OF CONCERN ABOUT DEVELOPMENT AND DISPLACEMENT, BUT WHAT WE'VE SHOWN HERE IS THOSE PROJECTS HAVE FACTORY YARDS. AND AS WELL AS BOSTON SQUARE PROJECTS THAT DIDN'T CAUSE A LOT OF DISPLACEMENT. WE WERE VERY CONSCIOUS ABOUT INCLUSION IN MAKING SURE THAT WE ENSURED PEOPLE RETAIN AND BE ABLE TO AFFORD HOMEOWNERSHIP OR RENTING. YES, WE GOT A LOT OF VACANT LAND IN GRAND RAPIDS. AT THE
[01:00:05]
END OF THE DAY, IF YOU WANT TO INCLUDE SURFACE PARKING LOTS. AND SO WE CAN DO A LOT OF SURFACE LOT DISPLACEMENT. ERIC, CAN YOU ASK ON THE STATE LICENSING ISSUES THERE? YOU MEAN ON THE ON THE. YEAH, SURE. DO YOU WANT TO TALK ABOUT WHERE WE ARE ON THE STATE OF PLAY ON THE LAURA STUFF? AS LONG AS YOU'RE UP HERE. SURE. SO YES, WE ARE. I AM EXPLORING ALL AVAILABLE REMEDIES TO THIS MECHANICAL INSPECTOR LICENSING ISSUE THAT IS CURRENTLY FACING OUR BUILDING DEPARTMENT AND THAT PERMITTING ISSUE THAT WE'RE HAVING. AND SO THAT INCLUDES, YOU KNOW, A LEGISLATIVE FIX IF NECESSARY, BECAUSE THE RULEMAKING PROCESS CAN BE CUMBERSOME. SO THAT'S AN OPTION. THE OTHER ISSUE WITH THE THE RULEMAKING PROCESS IS THAT IT'S NOT JUST THE ONE RULE THAT'S BEING CHANGED. IT'S A WHOLE SET OF RULES THAT'S BEING CHANGED. AND SO THAT CAN ALSO CAUSE, YOU KNOW, IT TO TAKE SOME TIME BECAUSE, YOU KNOW, THEY NEED TO GO THROUGH THE WHOLE SET OF RULES AND MAKE ALL OF THE CHANGES. SO, SO THAT'S THE REASON FOR EXPLORING LEGISLATIVE OPTIONS AS WELL OR STATUTORY OPTIONS AS WELL. I DON'T KNOW IF THAT ANSWERED YOUR QUESTION, BUT YEAH. THANKS. OKAY. ALL RIGHT. THANKS. THANK YOU. AND* This transcript was compiled from uncorrected Closed Captioning.