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Nutshell lands Series A2 round, plans to move to bigger home

Nutshell is making a sizable impact on Ann Arbor in two ways this year. First, the tech startup has just finished raising millions of dollars to fuel its rapid growth. Second, its co-founders and CEO have recently purchased three buildings in downtown Ann Arbor with the idea of creating a tech hub.

"This is about creating a center of gravity for all things tech in downtown Ann Arbor," says Joe Malcoun, CEO of Nutshell.

Malcoun and three of Nutshell's co-founders purchased 202, 206 and 208 E Huron St through their Cahoots Capital holding company earlier this year. They plan to turn the 24,000 square feet between the three buildings into one tech hub that will house Nutshell and other tech firms, including Notion and Coolhouse Labs.

The group is in the process of choosing a general contractor for the renovation project. They hope to have the new space online and ready to go by summer of next year. Nutshell expects to move into the space not long after it becomes available.

"We really don't want to leave downtown Ann Arbor," Malcoun says. "It's an important part of our value proposition to our employees our company culture."

Nutshell makes customer relationship management software. The platform helps companies organize and automate its systems so its staff can work smarter and collaborate more with each other and their customers.

The 4-year-old startup has watched its revenue jump 60 percent over the last year, prompting it to double its staff to 25 employees and an intern thanks to 12 new hires. Malcoun is looking to hire another 10-12 people now that it has landed a new round of investment. The rest of the money will go toward ratcheting up its marketing efforts.

"The pure volume of marketing will increase," Malcoun says. "More importantly we are committing to an in-bound marketing campaign. We want to build a relationship with people before they purchase our product."

Malcoun describes Nutshell’s latest investment round as a Series A2 worth "several million dollars." He declined to specify how much it was worth but did add that Ann Arbor-based Plymouth Venture Partners is leading the round.

"It's a growth round, an extension of our Series A," Malcoun says. "We are calling it a Series A2 as a sort of homage to Ann Arbor."

Source: Joe Malcoun, CEO of Nutshell
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ypsilanti aims to empower residents with new side-lot program

Ypsilanti wants to empower its residents by letting some of them purchase the lawns they mow. Talk about grassroots.

The city of Ypsilanti is working to launch a side-lot program where homeowners who live next to vacant lots owned by the city can buy them for as little as $1. Often the lots in question are small city lots where the city razed a blighted building and left a grassy area that more times than not the neighbors take care of.

"We're looking at increasing someone's yard," says Beth Ernat, director of community & economic development for the city of Ypsilanti. "It rewards property owners who have been taking care of the property."

The city hopes selling the lots to local residents will mean generating more property tax revenue and spending less city resources on maintaining vacant land. Similar side-lot programs have been deployed in other Michigan cities, like Detroit, Saginaw and Flint.

"It has worked in very well in other cities," Ernat says. "We think it's worth giving it a try here."

The city of Ypsilanti hopes to have the program ready for launch in October and selling lots in November. Corner lots and lots of big acreage, such as the Water Street properties, are not available. Available lots will first be offered to adjacent owner-occupants who are in good standing with the city regarding property taxes and code violations. For information, contact Ernat at bernat@cityofypsilanti.com or (734) 482-9774.

"We have received a lot of interest from word of mouth," Ernat says. "We will be notifying every neighbor about this."

Source: Beth Ernat, director of community & economic development for the city of Ypsilanti
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

DTE opens huge solar farm next to Domino's Farms

The largest solar farm in Michigan is generating clean energy next to Domino's Farms this fall.

DTE Energy and Domino's Farms flipped the switch on the 1.1 megawatt solar array on Ann Arbor's northeast side earlier this month. Motorist driving past Domino’s Farms at the M-14/US 23 intersection will notice the 4,000 panels on the north side of M-14. DTE Energy owns the solar farm and will operate it for 20 years. It is leasing the land from Domino's Farms.

"We were identified (as a potential home for the solar farm) because we are one of the larger landowners in the Ann Arbor area," says John Petz, director of real-estate and public affairs for Domino's Farms. "We also have a lot of freeway frontage."

The solar farm is putting the undeveloped and underutilized land to use as part of DTE Energy's initiative to generate 10 percent of its electricity from renewable sources as mandated by state law. The Domino’s Farms solar array will generate enough electricity for 200 homes at any given time and is part of the 11 megawatts of solar farms run by DTE Energy at 23 sites across Michigan.

The electricity generated at the Domino's Farms solar array will be enough to offset one quarter of its electrical needs, although the power will be sent directly to DTE Energy's grid. The solar array is part of Domino’s Farms overall effort to become more energy efficient, such as switching the green lights that make up the main building's outline to LED lights. Today Domino's Farms uses as much electricity as it did before it added 200,000 square feet of space several years ago.

"We have been doing those sorts of things for a number of years," Petz says.

Source: John Petz, director of real-estate and public affairs for Domino’s Farms
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Saline group crowd funds to light up Henne Field

Folks in Saline are working to make Henne Field a central part of downtown by lighting it up this fall. The Friends of Henne Field has launched a crowdfunding campaign to install streetlights along the walkways of the near-downtown park. The group wants to raise $35,000 over the next two weeks for the $95,000 project. You can find the crowdfunding campaign here.

"It will make a tremendous difference," says David Rhoads, vice chair of the Friends of Henne Field. "People walk the path only during the day time now."

Henne Field was donated to Saline Area Schools donated in 1947. It fell into disuse in recent years until the Friends of Henne Field began working to make it into a community green space in 2007. They believe its location near downtown makes it an ideal for festivals, car shows and other small events.

The addition of the street lights is the next step forward for the group. It has already raised $25,000 for the effort, and will receive a $35,000 matching grant from the state if it can raise another $35,000 through the crowdfunding campaign. When the money is raised, Rhoads hopes to have project done by the end of November.

Source: David Rhoads, vice chair of the Friends of Henne Field
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Work begins on downtown Ypsilanti co-working space

A new co-working space called The Back Office Studio is under construction in downtown Ypsilanti and should be open this fall.

Construction workers with JC Beal Construction have begun working on 13 N Washington with a target of having the space completed in time for a Halloween opening. In the meantime, The Back Office Studio team is recruiting its first patrons.

"We're looking for second stage companies in any industry," says John Newman, general manager of The Back Office Studio. "We're not going to be incubating startups. We ware looking for established companies looking for office space or collaboration space."

The Back Office Studio is also looking for freelancers and other new economy professionals to fill out its space. The plan is to start at the ground floor of the 9,000-square-foot building and go from there.

"We're going to start on the first floor and expand into the second floor," Newman says.

The co-working space will enable users to have 24/7 access to the building through a key card. Memberships are available to $100 a week or $25 a day trial memberships. Regular memberships where people can access a desk on a first-come-first-serve basis are available for $200 per month. A membership where the user has access to a private desk go for $350 per month. Users will also have access to the stereotypical co-working options, like coffee, snacks, conference rooms, and WiFi.

"We're working to have a really robust wifi," Newman says.

Newman and his partners purchased the building earlier this year with the idea of turning it into a new economy hotspot. They want to complement the Ann Arbor SPARK East Incubator in downtown Ypsilanti by creating a space for more mature companies.

"We want to add to the vitality of downtown Ypsilanti," Newman says.

Source: John Newman, general manager of The Back Office Studio
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Mother's last words inspire launch of The Little Bird Cafe in Ypsilanti

Joanne Kwiatkowski died of breast cancer three years ago, leaving a hole in the life of her daughter, Beth. But Joanne also left her daughter with some words of wisdom.

"She asked me that I live my life and not let anybody hold me back," Beth says. "That's what inspired me to do this crazy thing and spend all of my money on it."

That crazy thing is Beth's own coffee shop, The Little Bird Cafe in Ypsilanti. Beth has worked as a coffee buyer for Whole Foods for years. She loved going into work everyday and seeing people who eagerly awaited her work with coffee. Today she works in a more corporate capacity for the upscale grocer. While Beth likes her current job, she wants to get back to interacting with customers on a regular basis.

"I'd like to do my own thing and not be in the corporate world anymore," Beth says. "I think I would be perfect for it."

So Beth is in the process of launching The Little Bird Cafe, a craft coffee shop that specializes in espresso drinks and pour-overs. She bought a small commercial building at last year's Washtenaw County Tax Auction. The 1,200-square-foot structure at 908 N Congress was an abandoned party store that Beth used to jog past in Ypsilanti’s Normal Park neighborhood.

"I said this would be the perfect place to open my coffee shop one day," Beth says.

The city of Ypsilanti recently approved the zoning for The Little Bird Cafe. Beth is now starting to gear up to renovate the building with an eye of opening the doors in mid 2016.

Source: Beth Kwiatkowski, owner of The Little Bird Cafe
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Grizzly Peak celebrates 20 years by refreshing with renovations

Grizzly Peak Brewing Co is hitting a stage of development most other restaurants only dream about. It has been in downtown Ann Arbor long enough that it has become a fixture of the local brewpub scene. However, that longevity comes with a price paid through renovations. The popular brewpub is spending a significant part of August renovating its interior with an eye on the future.

"The idea is to do something of a facelift," says Stacy Baird, general manager of Grizzly Peak Brewing Co. "The restaurant has been around 20 years. It’s a local favorite. But obviously 20 years is a long time. The idea is to make us a little more current."

The work included new light fixtures at the tables and fans in the dinning rooms. Workers are also rebuilding the entrance area to make it more open and hospitable to merchandise sales. While construction is going on the kitchen is also refreshing the menu with a few new items with new ingredients, such as beet pesto and goat cheese pizza.

"They are simpler things with more flavor," Baird says.

Grizzly Peak Brewing Co was closed for three days last week, and has had certain parts closed here and there for the rest of the month. Work is expected to wrap up in the next week or two so the entire restaurant can be open to commemorate its 20th anniversary in September.

Source: Stacy Baird, general manager of Grizzly Peak Brewing Co
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Growing demand leads to second bike house in downtown Ann Arbor

Downtown Ann Arbor is set to cut the ribbon on its second bike house tomorrow, and the first spots in it are reserved for employees working in city's center.

A bike house is a small, secure facility where users can store and access their bicycles, sort of like a locker room for bikes. Renters pay an annual or monthly fee to rent a space in the bike house.

Local high-growth tech startups Duo Security and DeepField helped inspire the construction, offering to prepay for reserved spots in the new Ann Ashely Bike House for their employees. Both companies call downtown Ann Arbor home and have been hiring dozens of new employees, mostly young people, over the last year.

"We have a lot of young people who tend to bike to work," says Lorne Groe, CFO & COO of DeepField. "The average age of our employees is in the late 20s. Our current space wouldn’t allow us to have bikes in the office. It's also not the best place to have bikes."

Other local businesses have jumped on the bandwagon, reserving spaces in the new bike house.

"It's not just the tech companies," says Nancy Shore, business services director for getdowntown program. "We also have people who reserve spaces who work at Mighty Good Coffee Roasting Coffee and Workantile."

Employees from Thermo Fisher Scientific, Olark and WATS have also signed on to take over spots.

The Ann Ashley Bike House is downtown Ann Arbor's second bike house. It is occupying a formerly dead space in the Ann Ashley Parking Structure. Construction was paid for by the Ann Arbor Downtown Development Authority. The first one was built in the Maynard Parking Structure.

Source: Nancy Shore, business services director for getdowntown
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Original Moxie's growth leads to cramped space in new Depot Town home

Original Moxie is 4 years old but it’s this last year that has really taken the Ypsilanti-based business on a ride. A year ago it was a home-based business operating out of Rachel Blistein's basement. A steady rise in demand lead Original Moxie to find its own brick-and-mortar home in Depot Town last fall. A new partnership made that growth go even faster.

"In the last six months we have gone from opening a storefront to almost growing out of our space," Blistein says.

Original Moxie makes a full line of hair care products (shampoos, conditioners, stylers) for both straight and curly hair. All of its products are made of natural, organic products. All of its hair products are sulfate-free, paraben-free, artificial-fragrance-free, and cruelty-free. The idea is to enable its users to feel good about looking good.

Blistein started toying with the idea of making her own hair-care products a few years ago while she was working as a landscape architect. Blistein started working with a local stylist to develop the line and the next thing she knew she had a winner of a product on her hands ...and a new career.

"Through a series of accidents it turned into a bunch of different products for different types of hair," Blistein says.

A few months ago Original Moxie was approached by Sephora, a French-based chain of cosmetics stores. One of the Sephora's employees had become a fan of Original Moxie. The next thing Blistein knew Original Moxie was a featured brand in the Sephora lineup. More business came with it.

"The growth just jumped exponentially," Blistein says.

Which has allowed Original Moxie to expand its staff. It hired its fourth employees recently and more additions are possible in the not-too-distant future.

Source: Rachel Blistein, founder & CEO of Original Moxie
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

How Beezy's, Beal made the numbers work to grow in downtown Ypsilanti

News that a local entrepreneur (Bee Roll) and developer (Stewart Beal) are partnering to expand a popular business in downtown Ypsilanti (Beezy's Cafe) is rightly being celebrated. It's the type of move that passersby would say, "That makes so much sense. Why didn't it happen earlier?"

Normally, the problem of filling empty storefront A with growing local business B is a lot easier said than done. Roll and Beal figured out a way to make the numbers add up.

"This is what I would call Ypsilanti hustle," Beal says. "We are both going to work really hard to make this work."

Beezy's Cafe has become an Ypsilanti institution in the seven years since its opening, serving soups, sandwiches and other delicious food to a growing clientele. Despite its success, finding capital to grow has proven difficult, to put it nicely. (You can read more in-depth writing about those challenges here. Roll recently signed Beezy's Cafe up as one of the early adopters to ZipCap to leverage a $10,000 loan. More on that here.)

Last week Beal purchased the former Club Devine building at 21 N Washington St. The vacant structure also happens to be across the street from Beezy's Cafe current home. Beal and Roll plan to expand Beezy's Cafe into 3,000-square-foot of the former Club Devine space later this year or early next year. That space includes a 800-square-foot commercial kitchen, which is four times the size of Beezy's Cafe's current kitchen. It should give Roll ample room to keep up with demand for both her eatery's breakfast, lunch and dinner items, and its catering service.

"I just hope to have the kitchen operational so that I can produce food in a little more space," Roll wrote in an email. "That will potentially raise enough revenue to feed the rest of the growth and keep up with existing bills."

Roll is paying $2,500 a month for the new space of Beezy's Cafe, which include $30,000 worth of improvements Beal is making to the space and rolling into the rent. That comes to a price per square foot that Beal describes as the minimum a commercial property can charge a business and still maintain its status as a functional property that can make further improvements. Beal adds that he has been talking to Roll for years about her business and knows she was looking at expanding into an adjacent property that required at least $150,000 buildings updates. The problem so many retailers like Roll run into is they see empty storefronts in a dynamic downtown like Ypsilanti and then realize they need tens of thousands of dollars in upgrades that the landlords have no interest in making.

"In Ypsilanti the reason buildings are vacant in because the the owners of the buildings don't want to invest in the building to land a tenant," Beal says.

The former Club Devine building was move-in ready. Beal says his development team only needs to put down a new floor in an otherwise pristine space. Which is part of the reason why Beal wanted to move a tenant into 21 N Washington right away. For him it makes sense to bring in an popular business like Beezy's Cafe at an affordable price to anchor his new commercial development.

Beal is now working to fill the second floor and basement of the 22,000 square foot building. He is considering turning the second floor into either an office space or residential lofts, and hopes to fill it within six months. He knows filling the basement will be more of a challenge and hopes to find the right tenant for it in the not-too-distant future.

"She (Roll) brings the fan base and we get the space ready for her to make it work," Beal says.

Source: Stewart Beal, owner of Beal Properties; Bee Roll, owner of Beezy's Cafe
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Go! Ice Cream targets opening own shop in downtown Ypsilanti

Rob Hess has a dream, a dream that includes opening up a new ice cream store in downtown Ypsilanti. And he would like your help to make it happen.

The Ypsilanti resident has launched a crowdfunding campaign to help him finance the opening of the first permanent home of Go! Ice Cream. Today the fledgling business that makes craft ice cream is sold from the cooler of his tricycle and at the events he caters. Hess aspires to open an ice cream store at 10 N Washington, activating a vacant storefront and deserted alley in downtown Ypsilanti.

"I searched high and low for the right place," Hess says. He adds he spoke to local developer Stewart Beal and other local stakeholders to find the right spot. "I really want a space in downtown Ypsilanti. When you walk through downtown you can see a lot of vacant storefronts."

And that means opportunity for Hess. He has raised a little more than $6,000 of his $30,000 goal as of Tuesday afternoon. If Hess raises the money he plans to have the kitchen ready by early next year and the storefront open to the public by May.

Hess got started making ice cream as a hobby a few years ago. Check out a previous feature on Go! Ice Cream from Concentrate here. The videographer at the University of Michigan quickly got sucked into the craft of making ice cream.

"I got interested in the chemistry behind it," Hess says. "You can do a lot of subtle things to tweak the texture and flavor."

Soon he had a freezer full of his homemade ice cream and no room for any of his vegetables. So he started giving it away to friends and family. They started offering to pay him for it and the entrepreneurial light went off over his head. He started working with Zingerman's, which agreed to pasteurize the ice cream for him, and he had a real business on his hands.

"Once I figured that out I thought, 'Let's see if people will respond to $9 a pint ice cream?'" Hess says.

They responded well. Hess, an avid bicyclists, bought a tricycle to sell Go! Ice Cream's flavors across the city. He now sells ice cream to about 700 people per month and growing. He hopes to grow that number even faster when he has his own store where people can come to him.

Source: Rob Hess, owner of Go! Ice Cream
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

First residents begin moving into 618 South Main

The first residents began moving into the luxury apartments at 618 South Main late last week as one of downtown Ann Arbor’s newest construction projects comes online and on time.

"We currently have 40 units occupied with more moving in each day," says Meg Murphy, community manager for 618 South Main.

While a number of other high-rise apartment buildings in downtown Ann Arbor have fought to keep up with their construction schedules, 618 South Main is opening its first phase in August, a predicted, and is set to open the rest of the building a month from now.

"It's a matter of a lot of people working well together," says Dan Ketelaar, president of Urban Group Development, co-developer of 618 South Main. "Our whole focus is on our tenants. That drives us."

The $27 million development is building a six-story apartment building on the southern edge of downtown Ann Arbor. It replaces the old Fox Tent & Awning business. The new building will feature 164 apartments, including studio, one-bedroom, and two-bedroom units. Prices range in price from $1,395 per month to $2,905 per month and the building is 82 percent leased now.

618 South Main comes with a lot of extras. It has a common deck with a pool, outdoor grills, fire pits and lounge areas both inside and outside of the building. It also has 132 underground parking spots. 618 South Main also has some big-ticket green features, including a rain garden that filters all of the water runoff from the building, is estimated at 900,000 gallons annually, and sends it back into the Huron River.

"It's pretty unique," Ketelaar says. “"t captures 100 percent of the water runoff and filters it."

Ketelaar and his team are putting the final touches on the common areas of 618 South Main this month. Murphy expects to have the building fully leased and occupied by the end of September.

Source: Meg Murphy, community manager for 618 South Main; Dan Ketelaar, president of Urban Group Development
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Jolly Pumpkin ripens business with more tap rooms, distribution channels

Dexter-based Jolly Pumpkin Artisan Ales is growing by capitalizing on a number of revenue streams. This includes adding tap rooms across Michigan and opening up more distribution channels for its popular beers.

Jolly Pumpkin opened new tap rooms in its Dexter home last year and in Detroit's Midtown neighborhood last April, where it employs about 50 people.The artisan ales company currently has four tap rooms across Michigan is looking to open a few more.

"We will continue to find new locations and open up Jolly Pumpkin tap rooms in Michigan," says Ron Jeffries, founder of Jolly Pumpkin Artisan Ales.

It's part of Jolly Pumpkin Artisan Ales' plan to focus its growth in the Great Lakes State. Its distribution in Michigan is up 70 percent over the last year. The 11-year-old brewery is aiming to produce 12,000 barrels of beer this year, which would be up from 8,000 barrels in 2014.

Jolly Pumpkin Artisan Ales is pushing to sell more of its upscale brews in chain retailers. The brand is currently in a number of super markets, like Busches, Whole Foods and Kroger, but it is looking to add more chain restaurants to its distribution roster.

"Our sales team have been making great strides for us," Jeffries says.

The growth has allowed Jolly Pumpkin to hire more and more people. It currently has a employee base of just more than 200 with its tap rooms. A staff of 25 people mans the brewery in Dexter after hiring three people in the last year, and it's looking to hire three more now.

"We are currently looking for more people," Jeffries says. "We have been interviewing people for the last month."

Source: Ron Jeffries, founder of Jolly Pumpkin Artisan Ales
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Five-story duplex planned for edge of downtown Ann Arbor

There isn't much small about the plans for the Kingsley Parkside development. The near downtown Ann Arbor project wants to replace a single family home with a duplex. The duplex would measure five stories high, and prices for each unit would begin at $1.1 million.

"We're prepping the plans for the [city's] site-plan approval process," says William Davis III, co-developer of Kingsley Parkside. "We thought the opportunity for a two-unit building fit well there."

Kingsley Parkside would replace a small, dilapidated house at 214 W Kingsley, a few blocks northwest of downtown Ann Arbor. Davis’s development group purchased the building earlier this year and quickly came to the conclusion a new build would be the best fit for the property.

"There is significant water damage," Davis says. "The inside is damaged beyond repair."

The property is in the city’s D-2 zoning, which is set aside for medium-sized and dense buildings. The duplex would feature side-by-side units with a modern, loft-like design. Each unit would come with its own elevator and penthouse balcony. Davis and his team are also looking at reusing the fieldstone from the current structure in the new building.

Davis hopes to have the project approved later this year and begin construction soon after as soon as buyer one of the units is found. Moving the Kingsley Parkside's first residents in could happen as soon as fall of 2016 if everything goes according to plan.

Source: William Davis III, co-developer of Kingsley Parkside
Writer: Jon Zemke


The Glen aims to bring boutique hotel next to Angelos

The Catherine Ann Development Co wants to up the hospitality game in downtown Ann Arbor with its plans for a new hotel, The Glen.

The firm plans to build a boutique hotel across the street from Angelo's restaurant that will focus on providing high-end amenities. The development team likes to compare its aspirations for The Glen to The Townsend Hotel in downtown Birmingham, one of the poshest boutique hotels in Michigan.

"It would be unique in Ann Arbor," says Tom Shields, spokesperson for The Glen. "Ann Arbor doesn’t have something like this right now."

Plans call for building a nine-story structure with 194 rooms. Of those rooms, 34 will be penthouse suits that are open for short or extended stays. The building will also come with four floors of underground parking with 191 parking spots. Other details about the development are still being determined by the Catherine Ann Development Co and city officials. A public meeting on the project is scheduled for August 10th.

The Glen would occupy a large vacant lot that has been left empty for years as various development plans sputtered out. It fronts Glen Street between Catherine and Ann streets and is located close to both the University of Michigan and the University of Michigan Health System.

"It's a great location across from the medical center and on the edge of the university," Shields says. "It will serve both of those markets."

If plans are approved by the city, construction is set to begin next spring with a target opening of late 2016 or early 2017.

Source: Tom Shields, spokesperson for The Glen
Writer: Jon Zemke

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