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Marquette Monthly
March, 2007
 

Lookout Point
Northern Options offers home builder training, by Sam Simonetta
Negaunee takes lead in preserving mining heritage, by Kristy Basolo
A Tale of Two Tacos, by Amee Loftis, guided by Tawni Ferrarini, associate professor of economics, NMU


Northern Options offers home builder training

Northern Options Energy Center along with the Upper Peninsula Builders Association is offering a free Michigan Home Builder training workshop. Northern Options is a nonprofit organization committed to community education in the areas of energy efficiency and renewable energy.
The workshop is open to any homebuilder or subcontractor—anyone in the building trades. Commercial builders, Habitat for Humanity chapters, nonprofit housing corporations and high school vocational education teachers also are welcome.
This workshop will provide home builders with the practical information they need to build and market affordable and efficient homes. Information that will be presented includes how to best satisfy building energy codes, how to qualify for Energy Star designation (and incorporate Energy Star rated products), how to learn about Building America best practices, and how to qualify for new federal tax credits.
Attendees will better understand Michigan requirements and be empowered to build code-compliant, energy-efficient homes that meet federal tax credit standards.
The following specific topics will be covered: overview of the residential energy code; overview of Energy Star rated homes and Energy Star rated products; overview of the Building America program and best practices; an overview of federal tax credits; three examples of compliance with residential energy code; three examples of Energy Star qualified homes. Discussion of Energy Star products and the new requirement to include Energy Star products in homes; and three examples of homes that will qualify for the federal tax credits.
The case study homes include a rebuilt Lindal cedar home with shredded (blown-in) Fiberglass insulation, a Hiawatha log home with Iycnene insulation, and a conventionally constructed home insulated with wet blown cellulose built on an insulated concrete form (ICF) foundation.
The workshop will be presented by Certified Home Energy rater Brad Mann of Comfort First Energy Consultants in Lansing. Comfort First Energy is a family-owned business that performs energy star qualifications, H.E.R.S. (Home Energy Rating System) testing and energy audits including blower door tests.
There will be two sessions of the program, both on March 21, from 7:30 to 10:00 a.m. and from 7:00 to 9:00 p.m. Both sessions will be held in the Upfront & Co. banquet room. The evening session is open to the public. Refreshments will be provided.
For details, call 226-1136.
Northern Options thanks Brian White of the Upper Peninsula Builders Association for his support in promoting this event and Upfront & Co. for the use of their banquet room. This Michigan Homebuilder Training Project is funded by a grant from the Department of Energy. These workshops are happening at six locations throughout Michigan.
—Sam Simonetta

 

 

Negaunee takes lead in preserving mining heritage
In March, nine governmental units will receive the articles of incorporation for what will be the Iron Ore Heritage Recreational Authority. Once the authority is created, it will be the largest of its kind in the state.
Three cities and six townships are involved with the project, including Negaunee, Ishpeming and Marquette; and Chocolay, Ely, Humbolt, Negaunee, Marquette and Tilden townships. Previously, each governmental unit had passed resolutions of support for the project, which plans to be an important tourist attraction for the county.
Carol Fulsher of the Lake Superior Community Partnership said the project is getting the attention of statewide officials, as proven by the grant money that has been pouring in. She said groups involved appreciate the investment the state is making in mining heritage, and expects the investment will be repaid.
“We’re working toward a millage vote to establish the authority in the November 2008 general election,” Fulsher said.
The center of the heritage area is the Iron Ore Heritage Trail, a concept that has been explored for almost ten years, which proposes a linear, nonmotorized park connecting multiple cities and townships with one thing in common—mining heritage.
The forty-mile connection would take tourists from Republic to Marquette, with stops along the way at museums, plants, railways and other mining-related sites.
The trail would encourage visitors to explore the rich mining history in the area by stopping at indoor sites such as the Marquette Maritime Museum, Michigan Iron Industry Museum in Negaunee Township, Negaunee History Museum, Cliff’s Shaft Mining Museum in Ishpeming and Pascoe House History Museum in Republic.
Once completed, the spine trail will link these important historical sites, but it will be up to the individual communities to connect and market their own landmarks.
“We’re fortunate that the state sees fit to invest in this project,” Negaunee city manager Gerald Peterson said.
On the forefront of the development is the City of Negaunee, which is working actively to develop “Old Town,” one area the trail passes through.
The first section of the trail to be paved runs from the Negaunee Senior Center west to the Brownstone in Ishpeming; it is expected to be operational in Spring 2008. A Michigan Department of Transportation conditional commitment for $400,120 was received to further this project.
“We’re trying to break this project into manageable components, taking pieces we can accomplish and getting them done,” Peterson said. “We’re putting our best foot forward.”
The City of Negaunee formed an ad hoc committee of volunteer residents who are taking on the task of making recommendations to the city council for interpretation of sites that would be connected to the Iron Ore Heritage Trail. Subcommittees were formed to write grants, offer direction for historical interpretation, plan and name connecting trails and coordinate Pioneer Day events with the Old Town theme.
“We’ve received enthusiastic and informed input at these meetings,” Peterson said.
The Old Town ad hoc committee meets at 6:30 p.m. on the second Monday of the month in the Negaunee Senior Center. Interested residents are encouraged to attend.
The LSCP has put out a request for proposal for a public art installation in the Old Town area, near the Heritage Trail route west of Negaunee. Artists are asked to interpret three areas: the first iron ore discovery site; the Jackson Mine, which is the first iron ore mine in the Lake Superior region; and the missing community, which consists of steps and foundations of homes and businesses that were relocated once the mines and area was closed to the public. The deadline is March 16. For details, contact the LSCP at 226-6591.
In addition, Negaunee officials arranged a meeting with Ted Ligibel, the director of the historic preservation program at Eastern Michigan University to discuss his potential involvement with the project.
“We’re interested to work with him and his students to get a report and recommendation for preservation and interpretation of Pit #1,” Peterson said.
While there is a lot of planning going on, Peterson said residents can expect to see progress in the near future, including improvement of existing trails in Old Town, signage installed and exciting events during Negaunee’s Pioneer Days in July.
“Our goal is to create a market in Negaunee that doesn’t now exist for bikers, snowmobilers, ATVers and cultural tourism,” Peterson said.
Negaunee needs to capitalize on the gems and resources it has, and Peterson said strong city council leadership and hard work that has gone on behind the scenes has kick-started the process.
“We need steady progress so we can show the community volunteers they are supported in these efforts,” he said. “It’ll never be as fast as people want it to be, but we’re in the hard work part of transforming a community vision into reality.”
Visit www.ironoreheritage.com or www.cityofnegaunee.org for details
—Kristy Basolo

 

 

A Tale of Two Tacos
This is the first in a series of “Think Globally, Act Locally” articles, which will explore the steps of taking a business idea with an international flair to the local marketplace. This story is about three NMU students who want to open a taco stand. The second piece will describe the next step of their entrepreneurial adventure—finding investors or funds. Finally, the last piece will describe the first days or weeks of business.

The bustling streets of New York are filled with people on tight schedules, hungry and looking for food. Whether pizza or a hot dog, people are able to grab and go. Although Marquette is no big city and wilderness trails coexist with a few traffic-jammed streets, this unique characteristic of New York is present in Marquette.
There is a hot dog vendor that sells to people coming out of late-night establishments. Every weekend, rain, clear skies or snow, there are hot dogs. Hot dogs are great, but every once in a while, I want variety. With this information I had a breakthrough, a great entrepreneurial idea, the answer to the question of late night craving—I would sell something different, I would be the vendor to provide variety, I would start my own stand.
Equipped with my new business partners, Chris Wellens and Mauricio Posada, we sat down to create a business plan. As an economics student, at Northern Michigan University, I had abstract ideas as to how a business should operate efficiently and book knowledge on how businesses determine profit margins in globally competitive markets. Unfortunately, I had zero experience in the application process of this knowledge.
My new business partners and I wanted to take what we learned inside our classrooms at NMU and use it to provide local consumers with more late-night meal choices, offering them variety — something other than tasty hot dogs. We felt there was an unmet want in the late-night market, and we wanted to fill it while generating a profit. Everyone would benefit.
But how should we proceed with implementing this idea in a way that promised success to us and our potential customers?
First, we relied on what we had been taught in our economics classes. Our customers have choices. They voluntarily choose what to purchase, what to eat and they value those hard-earned late-night meal dollars. Well, maybe not hard earned.
My partners and I could not assume that just because we offered variety the late-night people would buy whatever we sold. The food item of choice had to be something they craved leaving the bars. Something they craved even more than hot dogs…
It had to be cost-effective for us, as entrepreneurial venders, to cook and keep the food of choice warm. We decided we needed something simple—a cart. All of us agreed up to this point. But, what, oh what, could we sell?
I wanted to sell pizza, something that people could easily grab and eat. Chris voted for hamburgers. “They are an obvious fast food option,” he boasted. Mauricio was set on tacos, tacos seasoned with his secret family recipe—a potential market niche.
Tacos are easy to make. Many people love them. The local community just finished reading Tortilla Curtain by T.C. Boyle. But would we bring something of value to our customers?
To find out, we surveyed NMU students. As a downtown merchant, we would be profitable only if we provided a food item in a cost-effective fashion that they would value. The value would be expressed in the money they would choose to spend at our cart. The student vote was split between pizza and tacos sold at various profitable prices.
As a team, we decided to offer tacos. They could be produced at the highest profit margin when compared to our second best alternative—pizza slices. Tacos became a new option for late-night eaters. They were easy to keep warm, tasty and inexpensive to make. We were especially proud of our corn tortilla that was fried, providing a soft shell with a contrasting crunch. Our tacos would consist of ground beef, cheese and lettuce all piled into a hot and crunchy corn tortilla.
Knowing that we had a solid idea, we took the next step. We contacted local development agencies—Michigan Works!, Lake Superior Community Partnership and Marquette Downtown Development Authority. We checked into local ordinances, zoning restrictions and the Marquette County Health Department. The resources are abundant, the support plentiful and, consequently, we were ready to charge ahead.
In order to keep the price of the taco as reasonable as possible, we would have to have the ingredients supplied at the cheapest price. We traveled to Wal-Mart, Gordon Food Services and Econo Foods, looking for the ingredients and comparing prices. The price difference was small, but we were looking for a way to get a large volume of ingredients cheaper. We set up a meeting with Econo Foods, asking if we could set up a deal, hoping for a better price.
Early on Friday morning, we approached the counter asking for Tony, the general manager. “Should we talk here or go upstairs?” Tony asked.
We opted for the conference room, ready to launch into a rather elaborate presentation. Tony entered, and I pitched our business plan, after enthusiastic introductions.
Mauricio added our hope for a relationship with Econo Foods, and Chris worked out the details. We discussed having Econo as our sole supplier; in turn we would be able to get a discount on ingredients.
We were offered a business account that would be paid monthly. In a small way, we were modeling ourselves after Econo Foods, a small business that was a force in the Marquette food industry.
Excited with our progress, we made tacos to celebrate our first official business meeting. The evening was filled with heated debates on cart warmers, outdoor space heaters and of course, the price of the products. With full tummies and the motivation to become millionaires, we bundled up and walked to Downtown Marquette.
The deserted streets and isolating cold pushed us to the Matrixx. At 2:00 a.m., people were starting to trickle out, hoping to catch a bite to eat before they went home. Here we surveyed what people craved.
The answers were varied and somewhat amusing. Tacos and pizza seemed to tie for first, with “but there are only hot dogs” following behind. We struck up a conversation with the man working at the hot dog stand and asked how his night was.
“It’s alright,” he said. “Sometimes my buns freeze and people yell at me.”
We mulled around watching the sales, freezing. We walked back, disappointed. There was a small volume of people, many of whom did not want to eat a hot dog. Would they eat a taco? We were deflated, the experience a bit defeating. Should we invest our money, time and energy into something that was riskier than we thought? Like any other new business, we went back to the drawing board.
After much deliberation, we decided to use this failure to seek other options. We decided to expand our customer base. Perhaps the bar scene would be more profitable in the summer when it was warmer and conditions not as harsh. If we were going to start now, we needed a different plan, something that looked more promising in the short run. The advantage of having the cart was that we were able to change our location and sell to different people on different days.
Perhaps we needed to change our market, perhaps we would sell more…on campus, at a large place of business in Marquette County, and another place? Do our readers have any ideas?
—Amee Loftis, guided by Tawni Ferrarini, associate professor
of economics, NMU

 


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