News highlights and important updates from The Right Place to kick-off Q4 2020.
Quarter 4 - 2020
UNEMPLOYMENT IN THE PANDEMIC
ALSO IN THIS ISSUE: PROJECT: GERBER PRODUCTS INC.
A WEST MICHIGAN DATACONOMY STORY
FUTURES FOR FRONTLINERS
RETHINK WEST MICHIGAN GOES VIRTUAL
TABLE OF CONTENTS
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Feature Article: West Michigan Dataconomy
CEO Update
Michigan Small Business Restart Program
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Unemployment in the Pandemic
Project Gerber Products Inc.
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Talent ReThink West Michigan Goes Virtual as Part of Collaborative Statewide Event
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The Center–West Navigating your business restart & recovery
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Futures for Frontliners: A no-cost opportunity to upskill your essential workforce
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Investor Spotlight Augusto Digital
Manufacturing Success West Michigan Tag & Label
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Inside RPI Corp! 2020 Salute to Diversity Award Winner The Right Place is Awarded Excellence in Economic Development
CEO Update
To our Investors and Partners,
Seven months into the COVID-19 pandemic, our team at The Right Place continues to adapt to the shifting needs of the West Michigan business community. We have become accustomed to this ‘new normal,’ but that is not to say the road has been easy. Every month has presented a new set of challenges for us all, and it is only with your support that our team has been able to continue assisting businesses in navigating this uncharted territory. Unsurprisingly, our economic development counterparts around the state are facing similar challenges in their own communities. As we forge ahead in the midst of this unprecedent global health crisis, it is imperative to protect and strengthen economic development initiatives in Michigan. That is why our organizations collectively decided to form the 12-member Economic Development Leaders for Michigan (EDLM) coalition. EDLM’s priority is to drive long-term economic growth and keep Michigan competitive in terms of state and local incentives for business retention, expansion, attraction, startup creation, and support for early stage companies. To learn more about EDLM and see the full list of members, please visit edlm.org . Like our fellow EDLM members, our team administered a portion of the $100M Small Business Restart Program funds on behalf of the Michigan Economic Development Corporation (MEDC). We awarded and distributed more than $9M in grant funds to 1,060 small businesses in West Michigan. In Kent County, 73% of the funding was awarded to women, veteran, and minority-owned businesses. Throughout the 11-county region, 66% of the funding was awarded to women, veteran, or minority- owned businesses. Amid the uncertainty of today and what the future holds, our team remains steadfast in our dedication to strengthening and advancing the West Michigan economy. Thanks to your ongoing support of our organization and the economic health of our region, we can continue leveraging every resource and connection in our arsenal to guideWest Michigan businesses through this pandemic. The collaborative, industrious spirit of our community will always prevail.
Birgit M. Klohs President & CEO The Right Place, Inc.
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LETTER FROM THE PRESIDENT
GERBER PRODUCTS, INC.
Gerber Products announces expansion of Fremont manufacturing facility
“Gerber’s Fremont facility has been a critical component of our regional economy for decades,” said Birgit Klohs, President and CEO, The Right Place, Inc. “Beyond providing hundreds of quality advanced manufacturing jobs with competitive wages, Gerber also supports the regional agribusiness industry and has strong relationships with local growers and suppliers. This investment will strengthen Gerber’s presence in the region and position the agribusiness industry for continued growth.” “Consumers Energy is excited to help Gerber Products make investments to create jobs here in West Michigan,” said Lauren Youngdahl Snyder, Consumers Energy’s vice president of customer experience. “We have madeaTriple BottomLinecommitment to people, the planet and Michigan’s prosperity, which our collaboration with Gerber Products illustrates perfectly in Fremont. When Michigan wins, we all win.” For more information on Gerber Products, visit gerber.com .
The world's largest producer of baby-food products, Gerber Products, Inc., recently announced that it will be investing $36 million into its Fremont manufacturing facility and creating approximately 50 additional jobs. Gerber was founded in 1927 in Fremont by Daniel Frank Gerber, owner of the Fremont Canning Company, which produced canned fruit and vegetables. Today, Gerber produces nearly 190 food products labeled in 16 languages and distributed to 80 countries around the globe. Gerber’s investment will support new product lines and programs, and further reinforces its commitment to Fremont. The Right Place worked closely with Gerber and the MEDC to solidify the investment in West Michigan. The Right Place also connected the company to workforce development resources at Michigan Works! West Central to assist with workforce recruitment and training, as well as Consumers Energy, which helped to reduce costs and promote clean energy business practices. The Michigan Strategic Fund has authorized a 10-year Renaissance Zone in support of the project and both Newaygo County and the City of Fremont have passed resolutions of support for the Renaissance Zone.
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Futures for Frontliners:
A no-cost opportunity to upskill your essential workforce
On September 10, 2020, Governor Gretchen Whitmer, along with leaders in education, business, labor and workforce development, launched the nation's f irst program offering tuition-free college to an estimated 625,000 Michiganders who provided essential, frontline services during the COVID-19 Stay Home, Stay Safe orders between April to June 2020. WHAT INDUSTRIES ARE ELIGIBLE? The State of Michigan has identified the following as essential industries: • Chemical supply chains and safety • Communications and information technology (IT), including news media
Eligibility Requirements
• Be a Michigan resident • Complete a Futures for Frontliners scholarship application by 11:59 pm on December 31, 2020 • Have worked in an essential industry at least half- time for 11 of the 13 weeks between April 1 - June 30, 2020 (view a list of essential occupations) • Have a high school diploma or equivalent, e.g. GED; Those without a high school diploma or equivalency are eligible for services to help them prepare for and complete this credential • Apply to and be admitted to aMichigan public community college • Have not previously earned an associate or bachelor’s degree • Complete the current-year (FAFSA) • Not be in default on a Federal student loan • Enroll at least half time for an associate degree or industry-recognized certificate • Enroll and begin classes in the winter, summer, or fall semester of 2021
• Critical manufacturing • Defense industrial base • Energy • Financial services
• Food and agriculture • Hazardous materials • Health care and public health • Law enforcement, public safety, and first responders • Other community-based government operations and essential functions • Public works • Transportation and logistics • Water and wastewater • Additional critical infrastructure workers Frontline workers are encouraged to visit michigan.gov/Frontliners to explore career opportunities, a list of local community colleges and get started on their application. All 28 of Michigan’s community colleges will accept Futures for Frontliners scholarships. The deadline for essential workers to apply is December 31, 2020 by 11:59 p.m .
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FUTURES FOR FRONTLINERS
UNEMPLOYMENT IN THE PANDEMIC
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DATACONOMY: UNEMPLOYMENT IN THE PANDEMIC
F or the past several years, West Michigan’s 13-county* regional unemployment rate had been holding steady around 3.0%. That changed inMarch 2020, when theNovel Coronavirus (COVID-19) began spreading rapidly across the nation, causing the first wave of business closures. As the effects of these closures rippled throughout the region, West Michigan’s unemployment rate, sitting at 2.9% at the time, sky-rocketed up to 23.0% in April. However, as the economy has restarted theratehasdecreasedsignificantly. Themost recent data, made available in August 2020, shows that 7.6% of our region’s labor force participants are currently out of work. While the declining unemployment rate offers many reasons to be hopeful, the pandemic-induced recession continues to impact our economy. This impact isn’t felt equally by all industries. Instead, its effects are lopsided with certain industries, occupations, and regions being more dramatically affected than others. Thus, we can expect that the recovery will be lopsided too, with different groups taking longer to recover than others. Anexampleof this is shown inunemployment rate disparities across West Michigan counties. In April, Lake and Muskegon counties saw unemployment rates that were more than double the national rate of 14.7% and far above the statewide rate of 24.0% .counties, like Kent, Ottawa, Barry, and Allegan, only experienced rates that were 6-7% higher than the national rate, and well below the state.
insights as to which sectors have been affected themost, andwhichhave recovered. Michigan's major industries have regained over half of their job losses since March. The construction industry experienced the second-worst job loss hit from the pandemic but has also had the best recovery. Manufacturing was the third-worst affected industry but has made significant gains since March. On the other hand, the leisure and hospitality industries, which were the worst affected by far, continue to struggle in their recovery. Keep an eye out for our next West Michigan Dataconomy article, which will include a breakdown of the county-level data and allow us to take a closer look at how West Michigan’s recovery is shaping up.
Some industries that require on-site workers and customers, including hospitality and accommodation, experienced the worst job loss rates. Other industries such as tech, business services, and other similar fields were able to hold steady and avoid job losses altogether, as their work could be done remotely. On the opposite end of the spectrum, some industries have experienced record demand and significant growth throughout this recession. In West Michigan, the number of unemployed individuals has decreased significantly since peaking in April. Unemployment jumped by 156,688 people between March and April, but by August, 74% of those individuals had returned to work. Unfortunately, that still leaves the region with more than 65,000 unemployed people, which is roughly 41,000 more than the region had prior to the pandemic. Industry-level employment data by county will not be available until December. Until then, we can use data from the state to gain
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NAVIGATING YOUR BUSINESS RESTART & RECOVERY As the dust begins to settle and businesses restart their operations following the widespread COVID-19 economic shutdown, it can be difficult to know where to go from here. That's why The Michigan Manufacturing Technology Center-West (The Center-West) team has developed a variety of tools and assessments for West Michigan manufacturers to tackle the challenges of operational restart & recovery head-on. We are here to support our region's manufacturers through the uncertainty of the months to come. Contact us today at thecenter@rightplace.org to discuss how we can help your manufacturing operations get back on track.
POST COVID-19 OPERATIONAL PLANNING As businesses prepare to return to work, or continue to adapt as information changes, operational plans are critical documents that outline your organization's plan for a safe return. It includes strategies such as social distancing, barriers, PPE, hygiene, disinfection, isolation and training. The Center-West is now offering a variety of services to meet your COVID-19 operational planning needs - from operational plan development or review, workplace evaluation or risk assessment. Learn more about these assessment options here . POST-PANDEMIC CASH FLOW ANALYSIS Today, perhaps more than ever, Small to Mid-Size Manufacturers (SMMs) are faced with cash flow management challenges. The Cash Flow Analysis from The Center- West provides a model that helps you look at payroll, accounts receivable and accounts payable with concise data and not emotion. This allows all stakeholders to have a shared investment and easily see how the forecast will affect them. Learn more about the Post-Pandemic Cash Flow Analysis program here .
HIGH-LEVEL LEADERSHIP DEVELOPMENT The recent crises have been a pressure-test for leadership and culture as new values and perceptions form. Leaders may be communicating with their employees more now than ever before, but this is likely one-way communication to simplykeepthemabreast of ongoingchanges. By developing a planned, deliberate culture to drive productivity and innovation, leaders can redefine and set the vision by understanding the needs of their team and aligning them with the company's chosen focus. Learn more about our High-Level Leadership Development coaching program here .
PIVOT 2020 TOOLKIT During this time of uncertainty it can be difficult to plan past today, let alone prepare for your next opportunity. That's why we've developed the PIVOT 2020 Toolkit, designed to: • Create a cadence formeaningful work and conversation during this high anxiety time • Offer methodical scenario planning to more effectively make decisions over the next year • Explore options that help you think about your capabilities and capacity differently, as well as how to deploy limited resources • Help your team identify signals in changing environments and its implications COMPLETE THE PIVOT 2020 TOOLKIT REQUEST FORM NEW TOOLS & SERVICES
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THE CENTER–WEST NEW PRODUCTS
Success Story: West Michigan Tag & Label
strengthened the current relationships. This has led to investment in upgraded equipment. West MichiganTag and Label is preparing for rapid growth in their market of digital and flexographic printed products. This training was a strategic part of the company’s growth plans and will position the company competitively.
Established in 1987, West Michigan Tag and Label ( wmtlprinting.com ) produces tags and labels for multiple consumer products including automotive, food, and medical manufacturers. Located in Grand Rapids, Michigan, they currently employ 20. THE CHALLENGE The Michigan Manufacturing Technology Center - West through its relationship with the MEDC and The Right Place received a request for training assistance for West Michigan Tag and Label. The Center-West assessment revealed West MichiganTag and Label had recent pressure from food processor clients to become ISO 9001:2015 certified as well as compliant to the NSF Standards for food packaging. Richard Rice, President, met with The Center-West’s Subject Matter Experts to develop a customized training plan and agreed it was the right time to pursue the certification.
THE SOLUTION The Center-West in partnership with Lynn Consulting Group provided West Michigan Tag and Label the training for achieving the ISO 9001:2015 certification, while introducing NSF Training Deliverables. This project guided West Michigan Tag and Label through the ISO9001 System development as well as an internal audit preparation to ensure a sustainable Quality Management System. This certification and training have positioned the company to provide assurances to food processors that they were doing the things to create a quality product from order to order. The work that they did was a driving force for increased sales opportunities as well
RESULTS • Cost savings - $2,500 • Increased jobs - 2
• Increased sales - $20,000 • Retained sales - $25,000 • New investment - $561,000
“The Center-West has always made us aware of products and services that are available to us. It was through that relationship that we went down this road of certification and we are ecstatic with the results.”
– Richard Rice, President
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SUCCESS STORY – WEST MICHIGAN TAG & LABEL
The Right Place, Inc. distributes over $9M in emergency grant funds
The Right Place and its regional partners were responsible for distributing funds to support qualifying small businesses within 11 of the 13 counties of West Michigan's ProsperityRegion#4: Barry, Ionia, Kent, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, and Osceola Counties. Grant funds for Ottawa and Allegan Counties were administered separately by Lakeshore Advantage. Each county assembled a local review committee to accept, review, and approve applications from affected businesses. The size of the committees varied and were composed of both public and private economic development partners. Collaborative partners included local economic development organizations, municipalities, counties, Downtown Development Authorities, chambers of commerce, minority associations and chambers, local banks and f inance professionals, community foundations, and others. The Kent County review committee was co-chaired by Guillermo Cisneros of the West Michigan Hispanic Chamber of Commerce and Jamiel Robinson of Grand Rapids Area Black Businesses.
In late September, The Right Place, Inc., in collaboration with the Michigan Economic Development Corporation (MEDC) and regional partners, announced that 1,060 small businesses have been awarded over $9M in grant funding. These grants were awarded to eligible West Michigan small businesses who have been negatively impacted by the COVID-19 pandemic. Funding for the grants was provided by MEDC via the Michigan Small Business Restart Program. These grants are designed to provide eligible small businesses with working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses that occur in the ordinary course of business. Demand for funding far exceeded available funds, with 2,995 applicants requesting over $50M in support throughout the region. In Kent County, 73% of the funding was awarded to women, veteran, and minority-owned businesses. Throughout the 11-county region, 66% of the funding was awarded to women, veteran, or minority-owned businesses.
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SMALL BUSINESS RESTART GRANT
GRANT RECIPIENT TESTIMONIALS
“Receiving this grant has been such a blessing for The Vegan Cheesecake Company,” said Jerica Buchanan, Founder, The Vegan Cheesecake Company. “Our business growth plans were put on hold due to COVID-19, and I was afraid my hard work in starting this company would all have been in vain. Thanks to this grant I will be able to pay off debt, restructure our website for ecommerce, hire a team, purchase equipment, and get the business up and running again.” “This grant ensures a softer landing for us and others to continue to provide natural health and wellness support to our community, “said Rachel Attard, Co-Owner, Medical Mile Massage and Yoga Therapy Center. “It will allow us to rebrand our group fitness studio so we can provide more one to one services. We can hire new staff after losing several. We can pay our two months back rent. Medical Mile Massage and Yoga Therapy Center can continue to be a healthy, selfcare focused outlet that helps people manage the increased stress that has been thrust upon us all. Thanks so much for supporting small business like ours.” “This grant came at the perfect moment for us,” said Danielle Camp of Just Like Home Adult Center. “We are a rather new business, having been opened for only a year and a half. Our business is extremely important to our community, as we are the only adult day center in this county. This grant enabled us the ability to purchase the necessary PPE without concern that we wouldn’t be able to pay our rent because of it. It allowed us to bring back our employees when we opened up full time and with our full client load and have the ability to pay them. Mainly, it gave us a little bit of peace of mind in a stressful, scary, and challenging period of time. And for that, we are truly grateful.” “With the COVID-19 pandemic, Wear Your Curls (WYC) lost out on a lot of opportunities for sales and brand awareness this year,” said Felisha Rodriguez, Founder, Wear Your Curls, LLC. “Because of this I had to shift my sales strategy and plan on using a sizeable part of the grant towards marketing and advertising. Social media has become a popular outlet for many during these unforeseen times, therefore, I am focusing my advertising efforts on these platforms. I will need a team to help me better manage this and so I plan to use part of the grant to hire one or two people to become part of the WYC team, whether it’s a part-time employee or a contractor.”
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ReThink West Michigan Goes Virtual as Part of Collaborative Statewide Event
an employer of choice in the state. Learn more about the statewide sponsorship packages and regional sponsorship options at backtomichigan.com/sponsor . SpectrumHealth, West Michigan’s largest employer, is the Regional Champion Sponsor of the West Michigan event. “Spectrum Health is an enthusiastic sponsor of ReThink/Back to Michigan. Not only do we have locations and positions open throughout the state, we know Michigan is a great place to live and work,” said Pamela Ries, Senior Vice President, Chief Human Resources Officer at Spectrum Health, “As employers are embracing work from anywhere, we also know that we may attract and retain more individuals and families to Michigan with fewer hassles for trailing spouses. ReThink/ Back to Michigan is designed to re-recruit and attract new talent to our amazing four-season state.” If you know someone living outside of Michigan that may want to relocate here, now is the time to tell them about Back to Michigan. Candidate registration is free and now open at backtomichigan.com .
For the past eight years, The Right Place and Hello West Michigan have hosted annual ReThink West Michigan career events on Thanksgiving Eve. ReThink has become a West Michigan tradition, attracting over 1,200 attendees, resulting in over 80 hires, inspiring similar events around the state and being recognized as an international best practice by the International Economic Development Council (IEDC). Aswithmany things, COVID-19 has derailed the typical format of these Thanksgiving weekend events. Despite the challenges of this pandemic, Michigan companies still have talent needs, both immediate and in the future. Recognizing this, organizations around the state have come together to develop a collaborative, virtual solution: Back to Michigan . This year, The Right Place and Hello West Michigan will join our community partners statewide to take ReThink West Michigan digital. Between November 17-24, nine regions around the state will host Back To Michigan, a series of virtual networking events where professionals interested in relocating to the state can speak directly with hiring employers. Under the combined brand, each region will host their own virtual networking sessions with up to 30 local employers and candidates interested in relocating to their communities. Together, we’ll show attendees why it’s time to take another look at the Mitten State.
HOW IT WORKS During these Back to Michigan events, representatives from participating employers will network with attendees and promote their current opportunities in the virtual platform Brazen. Provided by the Michigan Department of Labor and Economic Opportunity (LEO) Office of Employment and Training, Brazen will allow employers and candidates to interface one-on-one in a structured setting to determine potential fits. If you’re interested inrequestingabusiness booth, visit backtomichigan.com/events to find the contact for your region. Booths will be filled on a first come, first serve basis. SPONSORSHIPS Back to Michigan statewide sponsorship opportunities are available with the benefit of guaranteed business booths at all eight virtual events. Statewide sponsors will also receive extensive brand exposure through the paid marketing campaign. By becoming a sponsor, you can show potential candidates that your company is
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HELLO WEST MICHIGAN
Augusto Digital invests in thriving West Michigan tech industry
For those reasons and more, Anderson is proud to call Grand Rapids home to both himself and his company, “West Michigan has a rich history of successful business- people that give back and a community that supports growth. It is also a great place to live and raise a family.”
As one of Grand Rapids’ leading software and app developers, Augusto has been able to thrive in West Michigan’s business environment, with clients large and small, both locally and globally. The region’s IT industry, with a growth rate of 15.8%, is one of the fastest growing in the nation.
CEO and Co-Founder of Augusto Digital, Brian Anderson, chose to invest in The Right Place in 2019, when he joined our Technology Council of West Michigan. Augusto Digital is a custom software design, development, and consulting company with the technical expertise, knowledge, and experience to help clients execute their digital vision. For Anderson, investing in The Right Place was both strategic and personal, “I want to be part of something that is bigger than myself or my companies. I live inWest Michigan. I want to see the region grow and prosper,” said Anderson.
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INVESTOR SPOTLIGHT
YOUR DIRECT PATH TO BUSINESS GROWTH.
Running a growing business is dicult enough. And as you grow, knowing what resources are available, where to find them, and when to reach out can be another challenge entirely.
Fortunately, we’re here to make those challenges easier. The Right Place is your single source for business success in West Michigan, providing you with the tools and support you need to continue doing what you do best—running your business.
Find guidance, resources, and a team ready to assist at rightplace.org .
info@rightplace.org \ 616-771-0325
The Right Place named Corp! 2020 Salute to Diversity Award Winner Well-known business publication, Corp! Magazine, has named The Right Place, Inc. as one of its 2020 Salute to Diversity Award winners. The Right Place's 2020-2022 Strategic Plan was highlighted in the award. A strategic priority of this plan is economic inclusion, with an increased focus on inclusive growth initiatives to provide economic opportunities and shared prosperity for all in the Greater Grand Rapids region. Some initiatives to achieve this are already well underway, including the Brookings Inclusive Learning Lab, which The Right Place team began over a year ago in partnership with Brookings. The goal of the project is to determine what barriers to quality employment exist withinWest Michigan's communities of color and subsequently develop strategies with community partners to overcome them. The New Community Transformation Fund, supply chain diversification efforts, and The Right Place's distribution of Michigan Small Business Restart Grants to more than 50% minority, women, and veteran-owned small businesses were also mentioned as part of the organization's ongoing efforts to prioritize economic inclusion.
German American Chambers of Commerce awards The Right Place for Excellence in Economic Development The German American Chambers of Commerce (GACCs) has awarded The Right Place the German American Business Award in the category of “Excellence in Economic Development.” This award recognizes the highest accolades in German- American business and showcases the strength of German- American trade. The Right Place has been committed to excellence in German- American investment since its founding in 1985. President & CEO of The Right Place, Birgit Klohs, and other teammembers have traveled to Germany regularly throughout the years to call on German companies doing business in the Grand Rapids region, as well as attract new German companies to the area. These decades of relationship-building have resulted in the robust German investment seen in the region today. Over the last 35 years, more than 50 German companies and counting have located to the West Michigan region due to the efforts of the team at The Right Place. The Grand Rapids region has developed a global reputation as a destination for business success. From an extensive list of accolades for economic potential, quality of life, and more, to other assets like our highly skilled workforce, the region has been a magnet for German investment and will continue to be in the years to come.
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INSIDE RPI
The Right Place, Inc. 125 Ottawa Ave NW, Suite 450 Grand Rapids, MI 49503
IN BUSINESS, FOR BUSINESS.
THE RIGHT PLACE IS YOUR SINGLE SOURCE FOR BUSINESS SUCCESS IN WEST MICHIGAN.
To request a meeting with our team, visit www.rightplace.org or call 616.771.0325
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