UPWard Update

January 22, 2014

Mission: A collaborative effort of the private and public leaders of the Upper Peninsula of Michigan and adjoining Wisconsin counties to align and promote the region's resources, expertise, and creativity in order to sustain and grow the region's economy.

Please take a moment to review these updates from the UPWard Initiative.

I would like to thank the UPWard members, and others, that have provided content for these updates. If you have information you would like to share with the group, please email it to me. Holly Peoples

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Health Care

DCHS finances improve

The Daily News

Dickinson County Healthcare System posted one of its most profitable months of the year in November, slicing its year-to-date loss in operations by more than a third.

The Board of Trustees reviewed a report Thursday showing operating income in November of $467,133, which reduced the year-to-date loss in operations to $804,996.

November's performance continued a strong showing in the final quarter of 2013, following a gain of $141,825 in October.

A preliminary review of 2013 shows that hospital utilization was up slightly from a year ago, said John Schon, DCHS administrator. However, net revenues lagged because of weak reimbursements from insurers, he said.

For November, DCHS had operating revenue of nearly $7.85 million and expenses of nearly $7.38 million.

Spurred by financial challenges, the hospital launched an effort several months ago to seek a long-term regional health care partner. That process is expected to take the better part of six months to a year before a recommendation is offered.

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Education and Workforce Development

New Career Liaison Program Prepares Students for Post-high School Training Opportunities

Bay de Noc Community College announced a new partnership with the Michigan Economic Development Corporation and a network of community colleges around the state that will promote training opportunities for in-demand careers to Michigan high school students.

"Today, too few workers have the skills needed to meet the demands of employers in the new economy. One of the most common issues is around the lack of knowledge that high school students have about in-demand careers and training programs," said Gov. Rick Snyder. "Through the Career Jump Start program, we will encourage students to consider training opportunities that will provide them with critical work skills for those high-demand careers."

Created as a response to feedback received at the Governor's Economic and Education Summits held earlier this year, the Career Jump Start Program is intended to address the critical talent gap facing Michigan employers by promoting high-demand career paths to students. Through a network of Michigan's community colleges, Michigan Works agencies, employers, trade unions, Chambers and other key organizations, the initiative will educate high school students about Associate's degree programs, apprenticeships and other training opportunities for occupations that are in high demand by employers.

Bay de Noc Community College and community colleges in 10 regions around the state will house "career liaison specialists" who will provide resources to high school counselors, administrators, parents and teachers about post-high school training programs that will prepare students for in-demand occupations. Through improved connectivity between employers and the K-12 system, high school graduates in Michigan will be more informed about and connected to high-demand career options.

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Business Growth and Development

Joint meeting highlights next steps for economic development district

Daily Press

ESCANABA - Now that an economic development district in the Central Upper Peninsula is a state law, an application must be submitted for Delta and Marquette counties to become such a district.

"It's going to be a challenge," commented Escanaba City Manager Jim O'Toole at Wednesday's monthly joint governmental session at city hall.

Various representatives - including state, county, township, and city officials - were updated on the process necessary to create an economic development district in the two counties as recently authorized by state law.

Last month, legislators and the governor agreed to amend Public Act 275 to include a sixth Next Michigan Development Corporation in Delta and Marquette counties. Five districts exist downstate and are eligible for state funding and tax incentives.

The two counties must apply for the special designation and have the application approved before the resulting corporation can take advantage of tax cuts and state funding aimed to encourage investment, job creation, job retention, and related economic growth.

"We have an opportunity to apply for a Next Michigan to create a development corporation to advance projects on a regional basis," said O'Toole.

O'Toole noted it's like starting a new company involving entities in both Delta and Marquette counties. Each participant can contribute its own talents and skills to share with the other participants with the goal of economic development for the corporation.

"We don't want to compete with each other. We want to cooperate with each other," said O'Toole, adding some municipalities and agencies may decide not to participate in the economic development district.

Those attending Wednesday's meeting were informed of what has to be done in the application process. Kevin Korpi - a consultant hired by Escanaba in January 2011 to try to designate its north shore as an economic development district - outlined the steps in a teleconference call from Lansing.

Korpi said all the partners need to work collaboratively and build upon the good work that's already been done in Delta and Marquette counties.

The first step of the application process will be an analysis of the district including an economic impact study of the region, a district map, and a list of local governmental units, he said.

Step two will be an inter-local agreement which Korpi described as "a critical legal step" in the application process.

Step three would identify what a district board would look like and who would serve, he said.

Step four would be a proposed budget for the corporation, he said.

Once these steps are made, the application could be completed with the assistance of the Michigan Economic Development Corporation (MEDC) which oversees the districts.

Lois Ellis, MEDC business development manager for the U.P., attended Wednesday's meeting. She said the MEDC will help with the application process and can also offer various economic incentives following the application's approval.

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Higher Education

Michigan Tech student from China brings solar power to his home village

CBS Detroit

HOUGHTON - As New Year's traditions go, this one stinks.

Every Chinese New Year, the people in Zao Yuan, a rural village of about 2,000 people in China's Shanxi Province, celebrate by watching TV and cooking food on electric appliances.

And every Chinese New Year, the local power grid can't handle the load of everybody using everything at once - and so every Chinese New Year, there's a blackout in Zao Yuan.

Yawei Wei is from Zao Yuan, but right now he's studying for a master's degree in power engineering at Michigan Technological University. And thanks to his studies, he got to wondering: How do we stop the New Year's blackout back home?

Grid improvements would be too costly. Like rural America in the 1930s, rural China lags behind cities when it comes to electrical service.

But how about using modern technology to leapfrog the grid? Wei knew he could at least bring a few solar panels to sunny Zao Yuan. Specifically, to his cousin's roof.

Wei had the skills to design and build a small solar installation, and he had the encouragement of his advisors - Bruce Mork, the Wiitanen Professor of Electric Power Systems, and Sumit Paudyal, an assistant professor of electrical and computer engineering. Professors Leonard Bohmann and John

Lukowski also offered insight and support. The biggest hurdle was back home.

"The most difficult thing was trying to convince my family," Wei said. "That took three or four months."

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Business Growth and Development

Operation Action U.P. business awards

ABC10

Business representatives and community leaders met at NMU today to recognize organizations that made large economic strides in 2013.

It was all part of the annual meeting for Operation Action U.P., a coalition of stakeholders who have banded together to create and promote economic development and employment in the Upper Peninsula. The group helps to provide the area's industry with a unified voice.

"Operation Action Upper Peninsula has been a fifty-year important enterprise to the Upper Peninsula," Citizens for Affordable Energy founder and CEO John Hofmeister said. "The leaders in this room speak for themselves and the citizens of the Upper Peninsula about what matters."

Peninsula Fiber Network, Superior Fabrication, L'Anse Manufacturing and the Enstrom Helicopter Corporation were all honored for their contribution to the economic well-being of the area.

"We have over 450 vendors, some of which are in the U.P. and also (lower) Michigan, so this allows us to network and be able to find out what are some of the problems with the other businesses as shared problems, and also to combine those issues together, where we can have for our industry," Enstrom Helicopter president and CEO Jerry Mullins said.

"I'm very encouraged to be here, and to meet the people here, and to listen to what their plans are, what their thoughts are, and I just wish them the best in terms of organizing their voice," Hofmeister said.

Operation Action U.P. has been involved in numerous economic growth initiatives throughout the area for the past five decades.

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Tourism

Swedetown hosts Winter Trails Day

The Daily Mining Gazette

The Swedetown Trails in Calumet were filled with people exploring the loops Sunday, many for the first time.

The Swedetown Trails Club and Cross Country Sports of Calumet held the third annual Swedetown Winter Trails Day Sunday. Cross Country Sports provided first-come, first-serve snowshoe and ski rentals.

By about 2 p.m., about 50 people had stopped by the chalet for equipment, said Rick Oikarinen, owner of Cross Country Sports.

"There's a lot of people who either wanted to ski at Swedetown and hadn't, or hadn't been to Swedetown in a long time ... the trails are a lot better than they used to be," he said.

Preparing to head out on the trails was Jennifer Beck of Hancock. An avid classic cross country skier, she was trying skate skis for the first time.

"This is a great way to try out skate skis to see if I wanted to make an investment in them, and it's a great way to go skiing and sledding with the kids," she said.

Michele Serafin of Hancock called up many of her friends to let them know about it. She'd also come to the previous two free days with her family.

"We tried them out, and then we all got a pair," she said. "We ski a lot."

Once people wrapped up, they could head back to the chalet for free hot chocolate and apple juice.

Erin Raymond, a Finlandia junior from Mackinaw City, Mich., and Kathleen Janowiecki, from Howell, Mich., were part of a six-person trip from Finlandia. (The other four had taken a longer route.)

"I've never done it before in my life and I wanted to try it," said Raymond, a residential assistant at Finlandia Hall. "It was really fun. I fell a lot. I'll definitely come back."

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Business Growth and Development

Construction in Esky has good year

Daily Press

ESCANABA - Construction in Escanaba ended on a good note last year with 10 new commercial businesses and a new city playground, according to the planning commission's review of its 2013 activities, presented Wednesday.

"It was a good year," commented City Manager Jim O'Toole as he presented commissioners the year-end document which council will be updated on at its meeting tonight.

O'Toole reported the city's zoning permits totaled $12 million on 64 projects with 53 of these projects seeking county permits worth $9 million. The difference is attributed to projects getting ready to start yet or falling through, he said.

The John D. Besse Park was among the new additions to the city. Located on the corner of 8th Avenue South and South 30th Street, the park was funded through the John and Melissa Besse Foundation and dedicated during Escanaba's Sesquicentennial Celebration in July.

Ten new commercial zoning permits were issued in 2013. Commercial building projects totaled $6.7 million including two new auto parts stores on North Lincoln Road.

AutoZone, Inc., at 405 N. Lincoln Road, is a 6,816-square-foot auto parts store now open for business.

O'Reilly's Automotive Store, Inc., at 521 N. Lincoln Road, is a 7,735-square-foot auto parts store scheduled to open Saturday.

Two major construction projects which began in 2013 and will continue into this year include Bell's Upper Hand Brewery and a new rehabilitation building for OSF St. Francis Health Care System.

Bell's Brewery, of downstate Comstock, is expanding its business to include a 11,500-square-foot brewery and bottling company in the Renaissance Zone at the Delta County Airport. Construction of the building continues through the winter.

OSF is constructing a 14,513-square-foot physical therapy, occupational therapy and office building at 300 Willow Creek Road. Site work took place last year on the property located east of the hospital.

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Education and Workforce Development

Early college program off to a promising beginning

85 CHS students dually enrolled at Gogebic CC

The Daily Mining Gazette

There are three classrooms at Calumet High School which look more like something one might find at a community college. That is just one aspect of the atmosphere officials are trying to create for the 85 students taking the school's Early College program.

Begun this school year, the Early College program is a partnership between CHS and Gogebic Community College in Ironwood. Besides their regular high school classes, the 11th- and 12th-grade students in the program also take GCC classes. Students will earn either an associate of arts or associate of science degree in one year of community college classes rather than two. Those who move on to a four-year university will also be better prepared.

George Twardzik, CHS principal, said besides taking classes in rooms with tables large enough for three people rather than individual desks, the classes are on the same semester and hourly schedules as GCC. Students use the same text books as GCC. Teachers also conduct the classes as would college instructors, going to the rooms where the students are rather than having students go to where the instructor is.

"We wanted to try to create somewhat of a campus in a campus," he said. "We've aligned as best as we can with GCC." continue reading ->

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