I am also going to predict that we all need to reserve the Final Four weekend on our schedules as Coach Tom Izzo and his remarkable team push toward more history making. But perhaps, instead, or in addition, you’ll be attending Les Miserables at the Wharton Center where “Cameron Mackintosh presents a brand new 25th anniversary production of Boublil & Schönberg’s legendary musical, LES MISÉRABLES, with glorious new staging and dazzlingly reimagined scenery inspired by the paintings of Victor Hugo”. Maybe you should add Riverwalk Theater’s Black Box production called Two Beers and A Hook Shot and . . . Death Knocks. Or, perhaps, you’re just looking forward to seeing MSU’s baseball team in action, predicted to win the Big Ten this spring. Or maybe you are waiting to enjoy opening day at Cooley Stadium featuring the Class A Lansing Lugnuts.

But you get the idea…we’re just little Lansing. There’s nothing to do. MSU opera production at Wharton, Memphis – The Musical, Wicked, Riverdance…ok I really should stop.

Here is some news from the last two weeks:

1) LEAP received nice coverage in the Lansing State Journal. Please see take a second to read the article, “LEAP renewing focus on development” and editorial, “Greater Lansing must LEAP forward”.

2) LEAP’s New Economy Division continues to piece together layers of important programming for startup businesses at break neck pace.

• LEAP has partnered with The MORE Program (Matching Opportunities and Resources for Entrepreneurs Program), a U.S. Department of Labor funded 501(c)(3) nonprofit organization, to provide free access for any startup business in need of business resources our region, to utilize the InsYght resource matchmaking. Additional InsYght portal partners include Michigan State University, Automation Alley, and TechTown, to name a few.

To use InsYght, the user accesses the system through the portal and creates a profile of his or her company, including the desired resources, from workspace to human capital.  InsYght supplies specific information to connect the user to the available resources. InsYght is free and available to anyone looking to start or grow their business in Michigan. Anything from office space to accounting help, and InsYght instantly provides them with listings of available resources that most closely match the startup’s need, both substantively and geographically.  Soon it will be accessible on the websites of many, if not all, of the organizations whose resources are included in the system.

The MORE Program fuels the development and speed with which entrepreneurial ideas take shape and go to market. By working with Colleges and Universities, Incubator Programs, Industry Associations, High-Tech Small Businesses, and Government Agencies we provide “Fast Track” access to resources required to develop and market new ideas for business.  Learn more at www.themoreprogram.com.

• LEAP has announced a strategic partnership with tech giant Microsoft, on behalf of the region. LEAP will locally represent the Microsoft BizSpark program. BizSpark provides, free of charge, access to all Microsoft programs for a three year period of time to any technology-based company in our region that is less than three years old, privately held and making less than $1 million in annual revenue. Contact us for more information on this great program.

• LEAP has signed a contract to lead and operate the Business Accelerator Fund program. This unique partnership, utilizing state MEDC dollars, allows for startup businesses in our region to apply through LEAP, in partnership with Tom Donaldson and the Small Business Technology Development Center (SBTDC) for a variety of services valued up to $50,000 (marketing, legal, accounting, etc.).

• LEAP is soon to sign a formal contract running the Lansing Regional SmartZone, which includes the TIC and Hatch incubation systems in downtown East Lansing. It is our goal to expand this incubation system to the region, with its space, staff, management and programming. Thank you to the MEDC for recently awarding LEAP/Lansing Regional SmartZone a $150,000 kick off grant to help us set up this incubation program.

• Additional startup programming coming up includes: Lansing StartUp Weekend, 48 hours of intense training, innovation and collaboration between area professionals, CEOs, students and professors on start projects. Also, LEAP is participating in the Entrepreneurial Forum for International Students which is designed to bring together area professionals and resources matched to international students at MSU interested in starting a business.

3) Congrats to the Lansing Regional Chamber of Commerce’s great partnership with PTAC offices to help companies expand their business into government (Federal, State, & Local) opportunities. The Federal government alone in 2011 spent over $550 billion in goods & services. The State has over 1,100 contracts that they award yearly.

2011 totals for PTAC clients in Ingham & Eaton County was:

• Ingham County $18,099,056.00 in government (Federal, State & local) awards for clients, 291 awards with 362 jobs either created or retained.

• Eaton County $4,102,203.00 in government (Federal, State & local), 1021 awards with 142 jobs either created or retained.

For further information please contact Kim Langenberg at (517) 853-6445 or klangenberg@lansingchamber.org.

4) Congratulations to our friends at Siena Wealth Advisors, formerly known as Siena Capital Management. Siena was recognized in 2010 and 2011 as one of the top investment firms in the United States by CPA Wealth Provider and Accounting Today magazines. Only four firms made the exclusive list and Siena was the only investment advisory firm from mid-Michigan to be recognized. Congratulations local guys Steve Hicks and Roger Millbrook.

5) Welcome home Ray De Winkle, SVP of Business Development at LEAP. Ray spent the last ten days with Prima Civitas in Turkey, working on business leads, especially in the garment and fashion industry. Ray’s daily blog from the trip is available on LEAP’s homepage. Ray, only two weeks ago, was in Florida as part of the exclusive Site Search Selectors Conference, rebuilding a pipeline between our region and the national network of site selection consultants. Next month, Ray leaves for Germany and Italy as part of Governor Snyder’s mission to Europe as we work on several very hot prospects and visit world headquarters of some major firms located here in our region (including Jackson National Life).

We traveled to Kocaeli, which is a significant automotive center for Turkey.  We saw familiar names such as Honda, Ford, Suzuki, and Toyota as we drove.  Our destination was the Association of Automotive Parts & Components Manufacturers (TAYSAD).  We had a very productive discussion with Ms. Özlem Gülşen, who serves as Secretary General of the Association.  The Association has 290 members.  This is about 25% of the auto suppliers in Turkey.  A manufacturer must meet the following qualifications in order to become a member:

• Have a registered International Quality Assurance Certificate
• Be an exporter
• Be a Tier 1 supplier.

What was most fascinating about the Association is its location.  The offices are located in an “Automotive Industry Zone”.  This zone was established in 2001, and is 100% private.  Some forward thinking people purchased 280 Hectares (692 Acres) in 1997.  They have built a state-of-the-art industrial park, including a Technical College, a University, and a hotel is under construction.  They have planned capacity for 80 companies, and already have 56 located there.  They are also building facilities to lease to Tier 2 suppliers.  Turkey currently has capacity to produce 1.6 million vehicles annually, which will soon grow to 2.0 million.  About 70% of the vehicles produced in Turkey are exported.  For example, the Ford Transit light commercial vehicle, which is exported around the globe, including to the United States.  Another interesting fact is that approximately 70% of the vehicles purchased in Turkey are imported – so there is clearly a difference in what they consume versus what they produce.  Additionally, Turkey has a roughly 30% cost advantage for engineering services, and companies such as Ford, Fiat, and Renault have built engineering centers there.  As Turkey is still growing its automotive supply chain, they are in the lower value added end, but have plans to go higher up the value chain, which is why they are excited about the R & D centers being established there.

We next met with one of the companies in the park.  The company is supplying components to Ford globally, and are pursuing GM business.  They eventually expect to ship significant volumes to the United States, which gives us an opportunity to assist them with their location needs.  The company produces all its own tooling and machinery, and they have developed highly specialized proprietary manufacturing processes.

We then headed back to Istanbul, but stayed on the Asian side.  We met with a construction firm that appears to be very well qualified to be a contractor for Prima Civitas’s Iraq Housing project.  The company has worked successfully in Iraq, and already has equipment and employees staged there.

The contact who had organized our meeting with TAYSAD and the manufacturer in the Automotive Zone also happens to serve as Vice President of the Turkish Music Foundation.  As serendipity would have it, they were sponsoring a music concert that evening, and he arranged for us to attend.  We traveled to the historical European side of Istanbul to attend.  The venue was a special events pavilion on the waterfront across Kennedy Street from Topkapi Palace.  Yes, I said “Kennedy Street”.  President Kennedy is well regarded in Turkey.  Topkapi Palace served as the primary residence of the Ottoman Sultans for approximately 400 years.  It now serves as a museum.  Unfortunately, we had no time on this trip to visit any of the museums in Istanbul.  The pavilion is located at the confluence of the Golden Horn, Bosphorus Strait, and Sea of Marmara.  It was a packed house, my guess is around 350 people.  The crowd ranged from bohemian couples to very well dressed society types.  Remember, this was a Valentine’s Day concert.

We were treated to a delightful concert of Turkish Fasil (Classical) music.  It was a combined choral and instrumental concert.  The singers during the first half were a quartet of two men and two women.  After the intermission, the singer was a male vocalist.  The audience sang along with many of the songs.  The instruments were:

• a Cello
• an Oud – a pear-shaped stringed instrument which made me think of a mandolin
• a Kanun – a trapezoid shaped stringed instrument sometimes called a “Turkish Piano”.  We would think of it as a zither
• a Violin
• a Kemenche – a small pear shaped instrument played with a bow.  The instrument is held vertically, and rests on the players leg while the player is sitting
• a small and a larger Tambourine

During the intermission we were introduced to a couple of interesting gentlemen.  First, we met the President of the Turkish Music Foundation.  He serves as president of a global firm serving the building materials and agricultural products industries (exporting to 80 countries).  We also met the Honorable Mehmet Dönmez, who formerly served as Turkey’s Ambassador to Yemen.  He currently serves as the Representative of the Ministry of Foreign Affairs to the Istanbul Region.  He expects serve one more post as a Ambassador before he retires.  Ambassador Dönmez invited us (Steve Webster of Prima Civitas Foundation, Nurten Ural, Honorary Turkish Consul General for Michigan, and me) to his “home on the Bosphorus” for coffee the next morning.  Regretfully, Steve and I had to leave for the airport too early the next morning to be able to accept his invitation.  Perhaps next time!

I found it interesting that no one ever gave us a second look as foreigners.  I am quite used to being “observed” by the population when walking or using the subway.  What was also interesting is that while they knew I was a foreigner, they did not think I was from the United States.  The most common guesses were that I was German or Russian, with an occasional guess of Italian or English.  I suppose this is because they are so used to seeing foreigners, as the region has served as the crossroads of the globe for millenniums.

While departing from Istanbul’s airport, it became quite obvious that this region continues to serve as the crossroads of the globe.  Istanbul serves as a major hub to Europe, the former USSR countries, the Middle East, and Africa.  This was quite evident by observing the people in the airport and on our return flight to Chicago.  North American citizens were certainly in the minority on our plane, something to ponder as the world becomes flat.

Ray

If you want to view all of Ray’s pictures from Turkey click here. 

We then met with two of the partners in ENTES, a significant construction firm.  They also have a holding company with interests in diversified industries.  Both of these gentlemen were relatively young and had been educated in the United States, one at Purdue, and one at UCLA.  They were called back to Turkey to take over the family business when their fathers needed them. This seems to be a fairly common theme.  This company is a possible contractor for the large residential project in Baghdad that the Prima Civitas Foundation is working on.  Turkish construction firms such as this one have much experience in Russia, Eastern Europe, and the Middle East.

Finally, we went to the U.S. Consulate building in Istanbul.  This is a fairly new compound, and is a very secure area.  You understand the security needs when you walk past a plaque before entering the building that honors 3 military personnel who were killed in the line of duty while defending the Consulate.  It is a sobering reminder that things were not always as safe in Turkey as they are today, and that our Embassies and Consulates are constant possible targets for violence.  One more reason to appreciate the services of those who work there.

We met with Ms. Ebru Olcay, a Commercial Specialist on staff there.  We had met with a couple of her colleagues late last week.  Ms. Olcay is a specialist in the markets for Healthcare and Biotech Technologies, Services and Products, including Medical Devices; Architectural and Construction/Building products and equipment.  Her job is to help our firms find export markets in Turkey.  In addition to Turkey, this post also helps firms export to Azerbijian, Georgia, Uzbekistan, and Kurdistan.

I forgot to update you on the weather in my last post.  We were delighted to see the sun come out on Friday afternoon.  Temperatures here have been very similar to those in Michigan.  As we were driving between appointments over the weekend, it looked like a completely different city when we had clearer air and sunshine.  Today was again heavily overcast, and the rain started this afternoon.  A mix of rain and snow is projected for the rest of this week.

Ray

After visiting CPI, we went back to Istanbul Fashion Week to see some new collections premiered.  The designers were featuring their Fall/Winter 2013 collections.  In a way, it is like the North American International Auto Show, in that there are a lot of designs that you can imagine being successful  in the market.  Additionally, there are some designs that can only be interpreted as futuristic design exercises, or creative expression for the designer – not necessarily meant for mass production and sale.

In the evening, after the premiers, we returned to Istanbul’s garment district to visit the showroom (wholesale only) of a designer of special occasion gowns for occasions  such as weddings, graduations, and proms.  They are selling successfully into the Middle East, Eastern Europe, and Russia.  They are trying to expand their market to the US and Western Europe.  This was a connection I made through the Eli Broad Business School Business Plan Competition.  The keynote speaker at the awards dinner mentioned his MBA classmate in Turkey.  This classmate happens to be a partner in this fashion company!  Because of our connection to one of the partners, we were treated to the opportunity to go to the design and manufacturing facility, in another building in the Fashion District.  Here, we were able to meet the designer, tour the prototyping and pattern making room, and the small production facility.  They also have other small production facilities outside Istanbul.

On Saturday morning, February 11, we visited designer showrooms again.  This gives us a chance to meet the designers and see a broader array of their work than we can in the runway show.  We can also see their work up close.  The afternoon and early evening was spent watching runway shows.  Late evening we had a farewell dinner, as most of the delegation was departing early Sunday morning to return to Michigan.  Our restaurant overlooked the Bosphorus Strait, which separates Europe from Asia.  This restaurant was chosen because it is a favorite of Ms. Nurten Ural, the Turkish Honorary Consul General for Michigan, who put substantial work into organizing the delegation.  Ms. Ural is also being very helpful in arranging additional meetings not related to the textile/fashion industry for those of us who are staying a couple of extra days.

Ms. Ural was instrumental in arranging a meeting on Sunday afternoon with a couple of interesting gentlemen.  The first is Azmi Ofluoglu, M.D.  Dr. Ofluoglu serves as President of Universal Hospital Group, a privately owned and run hospital system.  He also serves as President of Universal Construction, a $4.5 billion annual revenue firm with 8,000 employees globally.  We also met with Professor Dr. Izzet Bozkurt, Rector (President) of Yeni Yuzyil University, a private university also owned by Dr. Ofluoglu.  We discussed opportunities for mutual cooperation with all three organizations.  We then took a tour of one of the private hospitals owned by Universal Hospital Group.  This hospital was in the Asian side of Istanbul.  The hospital looked much more like a hotel than a hospital as we think of it.  Medical care consumers in Turkey have a choice of where they go, private hospitals such as we visited, as well as those run as public institutions and those that are part of university systems.

Ray

View Ray’s pictures from his trip here.

Initially, we were set to tour the Hagia Sophia, a former Orthodox Basilica (dedicated in 360), then Mosque, and now a museum. However, since it was still snowing steadily (very unusual for Istanbul) and the walks were become quite slippery, we decided it would be wiser to visit the Grand Bazaar.  The Grand Bazaar is one of the largest and oldest covered markets in the world, with more than 58 covered streets and over 4,000 shops.  We had approximately one hour to look around and meet back at the same entrance (one of 18).  This mall opened in 1461.  If you think covered malls were a U.S. development in the 1970’s, well I guess this proves otherwise!  Very difficult to tell if it was a “suburban” location then, as it’s now in the heart of the “old city”.

We then headed back to Istanbul Fashion Week.  Between the shows, we met with two Commercial Specialists from the United States Commercial Service, based at the U.S. Consulate in Istanbul.  Their job is to assist our companies with accessing Turkish markets, and to help Turkish companies seeking to set up operations in the U.S. market.  Getting to know them was time well spent as we assist our companies with accessing global markets and work to attract overseas investment to our region.  They confirm that just as Istanbul’s location gave it a strategic location for the ancient spice trade, it’s location still serves as the gateway between Europe and Asia, and that Turkey’s economy, especially in Istanbul, continues to be one of the fastest growing in the world.

Ray

Take a look at Ray’s photos here.

Ozlem Suer Designer Brand is described by world fashion authorities as Avant-Garde, Neo-Romantic, Experimental, Conceptual, and Inter-Disciplinary.  This brand is sold through 150 luxurious department stores and concept boutiques globally.  The collection ranges from ready-made clothing containing multi-combination alternatives from daytime to night; evening wear for red-carpet parties, bridal gowns for wedding ceremonies (including a stunning black design), and custom designs.

We spent the rest of the day at the Istanbul Fashion Week tents, followed by a show at the W Hotel.  Following this, at 11:00pm, because that is when the schedules allowed it, the economic developers in the group met with the General Secretary of the Turkish Construction  Industry Council, to discuss strategies and resources for Prima Civitas Foundation’s Iraq Construction project.  The General Secretary was in Istanbul from Ankara, Turkey’s Capital, for an evening event.  Since we also had evening events, we just extended our day to meet with him when it was convenient for him.  We had a very good discussion.

Ray

Take a look at Ray’s pictures here.

Our group arrived safely in Istanbul, after a 10.5 hour flight from Chicago via Turkish Airlines.

It is cold and rainy here.  Our Turkish hosts indicated that was so we would stay with the program developed for us, and not go off sight-seeing.  Istanbul (formerly known as Constantinople and Byzantium) has been a strategic global location for millenniums.  The first evidence of civilization here goes back 12,000 years.  It’s strategic location comes from the fact that this City lies in both Europe and Asia.  Istanbul has served as the Capital of: the Roman Empire, the Byzantine Empire, the Latin Empire and the Ottoman Empire.

Istanbul’s importance as a trading city is quite evident today.  As we traveled from the airport to our hotel, we spent a short time along the waterfront.  The number of ships at anchor in the harbor was amazing.

After we arrived at our hotel, we had a short time to freshen up before heading out to the opening event of Istanbul Fashion Week: a Young Designer’s Show and Awards Ceremony.  A field of over 200 designers under age 25 had been narrowed to 10.  3 of each of their designs were modeled for us.  The winner was Mr. Kadir Kilic, 21 years old, from Istanbul.  Notes from his entry: “The dominant color in the collection is black.  It is an effort to create an intellectual link between the words organic-geometric, alternative-neuter, minimal-expressionist.  It does not imply an absolute definition or judgment.”

According to Leslie Ann Pilling, CEO of Presence II Productions, who produces fashion shows in Michigan, this show was done very well.  She was most impressed with the level of the judges, significant figures in the fashion world both in Turkey and globally.  For example, one of the judges was the Dean of the London School of Fashion.

Ray

Take a look at Ray’s pictures here.

The re-organization of LEAP has now completed its first stage. I could not be more pleased as to how thorough and positive the many, many changes have gone so far- and they have been dramatic. From LEAP Chair, Steve Alexander (PNC Bank), our Executive Board, our new staff and myself, thank you to all of you for the amazing excitement, supporting the new LEAP vision, that you have shown us from across the entire state (that’s right- we are getting big positive attention from the MEDC and from our colleagues across the entire state of Michigan) and from the local community both public and private sector.

I have given our re org presentation to a wide variety of groups, over the last two weeks, I am sure totaling well over 300 leaders, and the reception has been nearly unanimously positive. As I’ve said many times, LEAPs’ time has now arrived, because our region’s time has finally arrived.

Some newsworthy notes for you:
1) According to the national organization MetroTrends, the Lansing region is #1 in the entire the nation in not one, not two, but three 3 of 16 categories for job growth. Those categories are: Goods Produced, Manufacturing and Utilities/Transportation. No one else was ranked #1 in three categories.

2) Sparrow Health System was ranked by New York-based Thompson Reuters Corp. in the top 20% of hospitals in the country. 321 health systems nationwide were evaluated based on 12 factors. Only three hospitals in the state made the top 20%. Those two were from Ann Arbor and Grand Rapids. Congratulations to Sparrow President and CEO Dennis Swan and the entire Sparrow Health System team!

3) On Friday, January 27th, Mimi Hall and Phenometrics celebrated the shipping of their first order for their Photo BioReactor (PBR) product. Phenometrics develops Algal (Algae) research tools for simulating and monitoring pond environments for the growth and research of Algae. The process and the products Phenometrics (www.phenometricsinc.com) allows for researchers from all over the world, to more effectively and efficiently grow Algae. What began as a simple research tool at MSU, is now a full-fledged company, built on a licensed MSU technology, and hiring employees. Phenometrics is now shipping these products from their offices in the Technology Innovation Center and is witnessing exponential growth over the last year and a half.

4) In relation to Phenometrics, in Ann Arbor this week, the Great Lakes Entrepreneur’s Quest presented awards as part of its statewide business plan competition during the ACE ’12 entrepreneurship event. Two start up firms residing in East Lansing’s Technology Information Center (TIC) incubator in the Lansing Regional SmartZone finished one and two in the state! BioPhotonic Solutions, represented by Dmitry Pestov, finished #1 in the state. They own disruptive technology that unleashes the latent capabilities of an entire class of lasers. Phenometrics, CEO Mimi Hall, also located in the TIC, placed #2 in the entire state! Their portfolio of products includes bioreactors, plant imaging systems and spectrophotometers to cultivate plants, in particular, algae. Congratulations!

5) Speaking of shipping parties, Revel Custom Wine Cellars, a designer and manufacturer of very high end wine cellar cabinetry and new to the TIC in the Lansing Regional SmartZone, announced its first shipment to Europe. Revel has developed and patented a proprietary design for wine storage cabinetry and has found traction with the extreme high end of the wine cellar market. The first European sale, a 2,000 bottle cellar to British entrepreneur Christian Melleman, was sent last week. Congratulations founder Jim Cash!

6) This past Friday evening the Eli Broad College of Business had its award program for its first Business Plan and Pitch Competition. MSU Dean Lenway says it was a small step in creating a culture change in the college. It is part of an effort to make all Broad students more entrepreneurially minded, and to significantly increase the number that actually chooses entrepreneurship as a career. Through a series of rounds over the fall semester 37 teams where whittled down to six finalists. The first place winner of $5,000.00 was Thru IM. The principles, Andrew Pung and Darin Gross have developed a live chat integrating software that allows texting communication between individuals and businesses. The second place prize of $2,500 was won by Anthony Spencer, Alex Church, and Ryan Woodington. Their company, Down to Earth, markets a food based skin care product line that is completely void of any of the ingredients that are harmful to one’s health. Such ingredients are contained in most of the products on the market today (even those labeled natural or organic). Finally, The Digital Bridge company started by Gina Verdun, Deiming Kong, and Anish More won the $1,000 third prize. The company targets the small business niche with services to create and maintain their social media programs. Under the direction of Dr. Forrest S. Carter this competition focused on undergraduates. The college is planning a similar competition for MBA students this March, and to continue its efforts to have an entrepreneurial culture change within the college.

7) In my judgment, one of the few if only ways to truly convince a population and a community that the future is bright, is to have cranes in the air, re-sculpturing a skyline. Well one of those giant cranes is being built right now which will dot our skyline for the next several months as it builds the Lansing Board of Water and Light’s new $180 million co-generation plant in REO Town, just off of busy I-496 (a crane for everyone to enjoy every day from their wind shields!).

8) Starting thing this week CATA buses will host a moveable “feast of poetry” with buses showcasing interior placards with portions of poems from famous to local poets. The placards also feature works of correlated art by students from an MSU advertising class. Congratulations to MSU Residential Center for Arts and Humanities Poetry Center’s Stephanie Glazier and CATA for their unique vision to bringing this national program to Lansing.

See you next time!

Bob

Let’s catch up with news maybe lost over the holidays and why 2012 is going to be a great year for us all:
1) The Cadillac legacy continues in Lansing. The new and sleek ATS Cadillac enters and competes with the compact luxury market. It will be built at the Lansing Grand River Assembly plant starting later in the summer. The plant, along with its sister plant in Delta Township, is the world’s most advanced car assembly plant with the world’s best workforce and engineers. What the press really didn’t touch on much, was that last year, Mayor Bernero and the city of Lansing worked smoothly and effectively on numerous difficult and complex issues that would normally have taken years to figure out for GM to make the ATS project a go here and not in another state or location. But these issues, including the passage of a 328 personal property incentive, were GM requirements to land the ATS. And it was done. Done in three months. Thank you to the excellent heavy lifting work of Mayor Bernero and the Lansing EDC.
2) Quietly but not unnoticed, was the new fire agreement to share services between Delta Township and the Looking Glass Regional Fire Authority. Both fire departments will realize savings of nearly $100,000 in the first year alone. The Looking Glass fire chief will become the deputy chief in Delta Township. Great job to the entire team! You are helping lead the way for our region with agreements like this.
3) Lansing made the list of 76 improving housing markets in the United States, hundreds did not. This, according to the National Association of Home Builders/First American Improving Markets Index. Why? Many more people are working in our region, building permits are up 22% from 2009, home prices are up nearly ten percent.
4) Our unemployment rate went down to 6.4% with many more people actually working and being added to payrolls. It was 8.3% a year ago. Embrace this fully: Our unemployment rate is substantially below both state and national levels.
5) The United States Post Office has delayed decisions regarding consolidation and closings of facilities until at least May of 2012. This is good news. While I think we all agree that fundamental change and hard decisions are necessary with the Post Office, I believe decisions still need to be made in a complete, thorough and public way. So far, it has not. In other words, we need to stand together and be vigilant and insistent that the Post Office has, in fact, properly completed feasibility studies and made the results public before final decisions are made about NOT consolidating in Lansing and consolidating somewhere else in the state. These are hundreds of well-paid jobs and I am convinced that a business case can be made for consolidation here in Lansing.
6) You may have noticed that there also will be delay until fall in the grand opening of the Broad art museum. I think this museum, once open, will be nothing short of a game changer for our region and the state. Its art collection and its architecture are truly groundbreaking on an international scale. The staff that has been very recently hired are national and global superstars. A small and smart delay is no big deal. In fact, it gives our regional team even more time to plan and get ready to properly and fully embrace this economic game changer to MSU and East Lansing.
7) Finally, of course there was news about potential federal budgetary dangers to the F-RIB at MSU. If the F-RIB were to be cancelled, this would be a profound blow to our state’s economy, but, perhaps more importantly, to our nation’s future in leading technological advancements. The idea that funding a facility in France may displace funding for our own facility here in America and Michigan, seems, well, hard to swallow. Count on us all, unified, to fight for what is good for science, business, Michigan and our country.
See you all Monday!

Bob

One final, special note from me before the holidays.

I am pleased to make four very major announcements (three involve the beginning of the new LEAP):

1) LEAP staff changes. I am so pleased and privileged to announce to you that Ken Szymusiak and Jeff Smith will be joining LEAP on January 3rd. Jeff has been East Lansing Director of the TIC/Hatch and all things incubator and entrepreneurial for over five years in East Lansing while working very closely with MSU. Ken has been a Director at the Lansing EDC for the last five years. Ken was project manager and creator of the city’s EB-5 program, the recent purchase of a 3D Printer, the Michigan Avenue Corridor Improvement Authority, and scores of major building/business projects including working with Demmer. Ken and Jeff are recognized, through both the public and the private sectors, locally and throughout the state, as two of the top innovators and doers in economic development. They are two, very amazing individuals and have done incredible work for East Lansing and Lansing. We were pleased to work very closely with the cities during this transition/partnership phase and I deeply commend their vision (and action) statement about regional economic development (and expectations). Jeff and Ken join Miche Suboski as Co-Directors of the Lansing Regional SmartZone and Entrepreneurialism.

2) LEAP signs an MOU to manage and staff the Lansing Regional SmartZone. A historic agreement was reached in our region recently when the Lansing Regional SmartZone (LDFA) and LEAP agreed to an MOU for LEAP to provide all staffing, programming, and management to the SmartZone, which includes East Lansing’s TIC/Hatch incubators and the MSU Corporate Research Park. This profound partnership between LEAP, East Lansing, Lansing, and Ingham County (and by extension MSU) will allow for the continued excellent services and staffing that the TIC currently receives while greatly expanding the SmartZone incubation buildings and services to the entire region. In other words, we will create a front door entrance for all business startups with a borderless, seamless set of staff, buildings and programs. More to come as the Leap Executive Committee and Board, as well as the SmartZone Board, both need to formally consider and approve the contract. But this is a major game changer for our entire region and the way we view economic development.

3) MEDC Incubation grants. Congratulations to the Lansing Regional SmartZone for receiving $150,000 of grant money, yesterday, from the MEDC for incubation support work. This is a significant amount of money to help us transform the SmartZone, but it is also only a taste of much higher dollar amounts that we should expect and demand from the MEDC once our new SmartZone/LEAP plans become implemented and proven in 2012.

4) Finally, it was my honor yesterday to lead our regional team in final presentation at the state’s MSF Board meeting where our Capital Regional International Airport received its Next Michigan (Aerotropolis) designation. Thus, we are only the second airport in the state to carry this critical designation that will greatly help us with the development of import/export/multi-modal businesses to our region. In addition, the airport has announced the construction of a 50,000 sq. ft. building to accommodate all of these development efforts. This designation also ushers in a great and new level of regional cooperation, as DeWitt Township and the city of Lansing have signed a revenue sharing agreement (425 agreement) for the airport area.

More announcements to come!

I wish you all a very Merry Christmas and Happy Holidays.

Bob Trezise, President and CEO LEAP