Steve Ballmer, ‘Hamilton’ producer highlight Detroit Homecoming; watch online, details on Page 4 SEPTEMBER 12 - 18, 2016 Washington Blvd.: Building on a vision By Kirk Pinho Book Tower restoration just one part of developers’ ambitious plans Estate Services LLC said total cost esti- [email protected] mates have not yet been determined, A century has passed since the Grand Circus Park, amounting to at e most ambitious and perhaps but did say that historic tax credits are three Book brothers embarked on an least $600 million in real estate invest- the most architecturally complex proj- expected to be part of the nancing ambitious eort to remake Washing- ment on Washington and several hun- ect is Dan Gilbert's restoration of the mix). ton Boulevard downtown, creating an dred million more in projects com- Book Tower, the haunting Italian Re- But what laid the groundwork for opulent thoroughfare unrivaled by pleted or underway around it. naissance-style skyscraper looming the Gilbert project is almost certainly any other in the world with dazzling e projects range from new apart- over downtown with its aged copper the renovation of the Westin Book Ca- skyscrapers, architecture and shops. ments, to retail, to renovated housing roof and ornate details designed by ar- dillac Hotel a decade ago, which was Now new developers have their for low-income seniors in what devel- chitect Louis Kamper. the rst in what would be a long string own plans for the four-block stretch opers predict is going to build upon It will almost certainly be the most of real estate acquisitions, redevelop- north of Michigan Avenue leading to the brothers' original vision. expensive of the crop, with develop- ments and renovations that have ment experts saying Gilbert's overall made Washington Boulevard and the LARRY PEPLIN redevelopment of the Book Tower and area generally west of Woodward Ave- The ornate architecture and long neglect will give the Book Tower and adjoining Book adjoining Book Building could cost nue far more connected. Building an estimated renovation price tag of $400 million or more. $400 million or more (his Bedrock Real SEE BOOK, PAGE 36 Icahn’s Federal-Mogul bid likely to end in split Experts say $281 million oer an exit play

By Dustin Walsh Consultants and executives scram- [email protected] bled over the long Labor Day weekend Billionaire investor Carl Icahn is to prepare the going-private deal be- taking Southeld-based auto supplier cause a buyer is likely waiting in the Federal-Mogul Holdings Corp. private wings, said Pat O’Keefe, managing after months of raising his oer price member of Bloomeld Hills advisory to the company’s other shareholders. rm O’Keefe and Associates LLC. What’s his game? He is likely to res- “Maybe he already has an exit (a urrect a plan scrapped last year to split buyer) in his back pocket,” O’Keefe the company’s powertrain and after- said. “is is absolutely an exit play; market divisions, with intentions of why else would he oer so much so selling at least one. e investor also quickly?” may parlay part of Federal-Mogul into In February, Icahn oered $7 per his recently acquired Pep Boys au- share for the remaining shares, then to-parts chain to create larger prot upped the bid to $8 per share in June. margins for both. A deal never materialized. e majority shareholder in the e $9.25-per-share bid is an 86 LARRY PEPLIN maker of Wagner brakes and Champi- percent premium over the supplier’s Wayne Brown, president and CEO of Michigan Opera Theatre, sees changes in Detroit creating “an exciting climate for us.” on spark plugs, Icahn Enterprises LP, share price of $4.98 in February. oered $9.25 per share for the remain- e bids show Icahn is desperate to ing 18 percent stake it does not already gain total control of Federal-Mogul own in a deal valued at roughly $281 and to nally make a move to rid him- million. self of at least part of the business, said Supported by the Federal-Mogul Matteo Fini, senior manager of com- Masters of arts board, the deal will take the publicly ponent forecasting for IHS Automotive New leaders of major cultural institutions look to build audiences, revenue traded company, which also makes Inc. in London. pistons, bearings and aftermarket “I don’t think (Icahn) wants to con- By Sherri Welch et and a better experience for residents and parts, private under Icahn’s control. tinue to run an automotive business [email protected] visitors. Special Federal-Mogul declined to com- for the rest of his days,” Fini said. “Spin- As Wayne Brown, president and CEO of A raft of leadership changes have put Report: Arts & ment because the deal is not yet nal- ning o one or both of the businesses the Michigan Opera Theatre, watches con- new faces like Brown in charge of some of ized. SEE ICAHN, PAGE 33 struction workers lay track for the M-1 Rail’s the region's largest cultural institutions, in- Culture streetcar project in downtown Detroit from cluding the MOT, the Detroit Institute of The business of arts

© Entire contents copyright 2016 his o ce window, he’s thinking about con- Arts, and the University Musical Society. and culture is a big deal by Crain Communications Inc. All rights reserved nections. And they are thinking big when it comes to in metro Detroit, and crainsdetroit.com Vol. 32 No 37 $2 a copy. $59 a year. A year from now, M-1 will be transporting collaboration and a new generation of au- many local institutions new patrons into the downtown corridor diences while attracting a new generation are working on and cultural center. of revenue. programming and ose additional visitors might be lured “at’s an exciting climate for us ... as we fundraising tactics that by not only the opera theater, but nearby arts try to advance our work over time,” said play to a more diverse organizations, restaurants and boutiques. Brown, who took the reins of MOT in Janu- audience. And that conjures up thoughts of how cul- ary 2014 after 17 years as director of music

NEWSPAPER Stories begin on tural groups can leverage what each brings and opera at the Washington, D.C.-based Page 11 to the table —for both mutual nancial ben- SEE LEADERS, PAGE 35 2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

MICHIGAN MICH-CELLANEOUS estream Ventures. Wakestream will INSIDE n Recreation apparel and gear re- make early-stage investments of THIS ISSUE tailer Moosejaw will open a pop-up $100,000 to $500,000, with a focus on CALENDAR ...... 32 store in downtown Grand Rapids on high-growth technology, the conver- CLASSIFIED ADS ...... 33 Sept. 19, just in time for the rst week- gence of hardware and software and DEALS & DETAILS ...... 32 KEITH CRAIN...... 8 end of ArtPrize. e 4,000-square-foot e-commerce. Spinning o the for-prot store is connected to Moosejaw’s larg- VC fund allows Wakestream to focus OPINION ...... 8 PEOPLE ...... 32 BRIEFS est “High Altitude Lounge,” a place solely on high-growth, high-risk nan- RUMBLINGS ...... 38 the opportunity to add their markers where the company plans to host cial investments. Pure Michigan adds WEEK ON THE WEB ...... 38 online road trip planner in the database for Roadtrippers.com. events and activities. e store is part n Patrons could bring their dogs Chris Ehrmann of the Madison Heights-based retail- along while eating in outdoor areas of It might still feel like summer, but er’s new strategy to test markets and restaurants under legislation advanc- COMPANY INDEX: the state isn’t waiting for cooler tem- Lawsuit asks billions in state retail concepts with short-term leases ing in Michigan’s Legislature, AP re- SEE PAGE 37 peratures to launch its Pure Michigan before investing in a permanent space. ported. State law generally prohibits travel marketing e orts for fall. Pure aid shi to municipalities n e U.S. Supreme Court has de- live animals at restaurants, but the leg- ment of Environmental Quality in the Michigan has teamed with Roadtrip- A lawsuit led last week says the clined to let Michigan’s new ban on islation — which supporters say could wake of Flint’s water crisis, AP report- pers.com, an online road trip planner, state is shortchanging local govern- straight-party voting take e ect for the boost tourism — was approved 32-4 by ed. Heidi Grether, a former BP lobbyist to get travelers to explore what the ments in what could amount to bil- November election, AP reported. e the Senate last week and sent to the whose appointment has been criti- state has to o er. lions of dollars. court rejected a request by state o- House for consideration. e bill would cized by environmentalists and Dem- Some of the highlighted areas in e lawsuit, led in the Michigan cials to halt lower court rulings that allow dogs on restaurant patios under ocrats, took questions last week from Michigan include the Keweenaw Pen- Court of Appeals, claims that the state blocked the Republican-sponsored certain circumstances, among which the Senate Natural Resources Com- insula, West Michigan shoreline, Sun- improperly includes payments made law signed by Gov. Rick Snyder. e would require them to be leashed and mittee. e panel didn’t vote, which rise Coast and U.S. 12 route. Attrac- to school districts, charter schools and court’s decision means Michigan vot- not to sit in chairs or on customers’ laps. means Grether’s appointment will tions accessible along each route are other units of government in the share ers will still be able to use the popular n Michigan’s public universities take e ect automatically as expected. also featured, allowing visitors to cre- of state revenue constitutionally man- straight-ticket option, which allows collectively have the sixth-highest in- Grether began the job Aug. 1; the pre- ate custom trip itineraries. dated to go to local governments un- them to support all candidates from state tuition rates in the country, aver- vious director resigned in the fallout e year’s total fall advertising bud- der the 1978 law commonly known as one party with a single mark. aging $11,991, according to a new re- from Flint’s lead contamination. get is $4.07 million, which includes the Headlee Amendment. at law n A bumper cherry crop this year port. e study issued by the Michigan n Rick Brenner, a veteran minor $1.17 million committed by private species that payments made to local meant a huge donation for a Grand League for Public Policy, a Lan- league baseball executive, has been sector partners through the Travel governments can’t fall beneath the Rapids-area food bank, MLive.com re- sing-based advocacy group for the named president of Michigan Interna- Michigan Ad Partnership Program. 48.97 percent share in e ect in the ported. Traverse City-based Shoreline poor, links rising tuition and student tional Speedway by the owner of the e campaign will include regional 1978-79 budget year. Fruit LLC, Michigan’s largest coopera- debt to decreased state higher educa- Brooklyn, Mich., track, which is Dayto- and in-state TV and radio spots, in ad- e plainti s include Eastpointe tive of cherry growers, was to deliver tion funding and state nancial aid, na Beach, Fla.-based International dition to a digital campaign and Pan- City Manager Steve Duchane and the 40,000 pounds of frozen cherries last AP reported. Sixty-two percent of Speedway Corp. He replaces Roger dora streaming radio. Advertising nonprot advocacy group Taxpayers week to the West Michigan branch of Michigan college students graduated Curtis, who resigned Aug. 30. Brenner spots will run in regional markets, and for Michigan Constitutional Govern- Feeding America, the nation’s largest with debt in 2014; their average debt most recently spent a decade as presi- Pure Michigan billboards with images ment. Eastpointe is one of several in- domestic hunger-relief organization. was nearly $30,000. dent of Boston-based DSF Sports and of fall in the state will be placed in ner-ring Detroit suburbs that have n Grand Rapids-based Start Gar- n e Republican-led Senate will Entertainment, which owns the New many of those markets as well. Local struggled with falling property tax rev- den has spun o its venture capital not block Gov. Rick Snyder’s pick to Hampshire Fisher Cats, the Double-A destinations and attractions will have enue. funding arm as a for-prot entity, Wak- lead Michigan’s embattled Depart- aliate of the Toronto Blue Jays. Nurturing rapidly growing businesses from the seeds of ideas through growth and expansion

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A BETTER PARTNERSHIP® By providing discerning and proactive legal counsel, we build a better partnership with clients. WNJ.com • 866.533.3018 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 3 Lame-duck Duggan Q&A: session pits A wealth Blight, Legislature ‘community against clock of potential bene ts’ Energy, no-fault auto insurance Mayor likes ordinance’s among bills awaiting action Proposal B, talks schools By Lindsay VanHulle By Kirk Pinho Crain’s Detroit Business/Bridge Magazine [email protected] LANSING — Twenty days. Mayor Mike Duggan hopes De-  at’s all the time left in the state troit’s electorate doesn’t cast votes that Senate’s current term.  e House will he believes will cost the city new jobs. meet even fewer times — just 18 days Duggan said he favors what he says are scheduled between now and De- is the more manageable version of two cember. proposed ordinances requiring “com- Somehow, lawmakers in that time munity bene ts” be provided by will have to adopt a comprehensive — would-be developers. and complicated — update to energy Speaking with Crain’s reporters and policy, reform the state’s no-fault auto editors last week, insurance laws, compromise on strict- Duggan said that er third-grade reading standards and if a community Vote revisit exemptions to Michigan’s open bene ts ordi- What is the records law. nance proposed most pressing Or they won’t. by Rise Together issue facing the Yet if they don’t act by Dec. 22 — Detroit passes in city and Mayor Dec. 15 in the House — everything left LARRY PEPLIN the Nov. 8 gener- Mike Duggan? un nished in this two-year legislative al election it Vote in our session will die.  at could mean start- Time will polish ‘National Treasure’ Je erson-Chalmers would “guaran- online poll. ing over after two years of work on an tee we never see crainsdetroit. overhaul to Michigan’s 2008 energy By Marti Benedetti another auto com/citypoll law, considered one of the biggest pol- [email protected] parts plant in this icy priorities this term because of what Ray Cronk is a realist when it city again” be- it will mean for renewables require- comes to improvements in the cause of the requirements it places on ments. Je erson-Chalmers neighborhood, developers. “Whether or not it gets completed where he owns a record store and a In the course of the interview, Dug- fully and to the governor by Decem- co ee shop. gan went from saying he would “prob- ber, I don’t know that that is entirely It will take time “before this be- ably” vote for Proposal B, a less strict possible. But it certainly is a goal to get comes a walkable, destination version of the ordinance, to saying he it out of the Senate,” said Amber Mc- neighborhood,” he said, even with will vote for it. He stopped short of of- Cann, a spokeswoman for Senate Ma- Je erson-Chalmers being named a fering a formal endorsement. jority Leader Arlan Meekhof. He is National Treasure by the private  e plans are generally as follows: MARTI BENEDETTI looking to see movement on energy nonpro t Proposal A, developed by Rise To- National Trust for Historic The interior and exterior (above) of the Vanity Ballroom in the Je erson- yet this year. last week. gether Detroit, would require that Preservation Chalmers neighborhood once played host to Cab Calloway and the Stooges. “I think (Meekhof) would be very  at designation quali es the projects of $15 million or more that disappointed if we found ourselves in- neighborhood for the attention and receive $300,000 or more in things like troducing energy bills in January to resources of the nonpro t organiza- along East Je erson Avenue near is an incredible distinction, but will tax abatements or incentives enter have to reset everything again.” tion to preserve and improve its Grosse Pointe Park is a mix of occu- (take time) before we see fruition of into a legally binding community ben- Last week was the Legislature’s  rst buildings, including help in qualify- pied and vacant and blighted com- this recognition.  ere’s a music e ts agreement with a group of week back after a lengthy summer re- ing for historic tax credits and turn- mercial buildings. It has bene ted analogy: Certain artists are lauded SEE DUGGAN, PAGE 37 cess.  e Senate, in particular, was ing them into cash for restoration, as from city road improvements, which for their talent, but they don’t sell a quick to get back to work, approving well as small grants and expertise. include a landscaped island and lot of records.” legislation that would regulate Michi-  e impact won’t be immediate. bike lanes. Neighboring residential Mary Lu Seidel, National Trust gan’s startup autonomous vehicle in- Je erson-Chalmers is considered streets range from vacant land to Chicago  eld director who also is dustry, create a new licensing frame- one of the few early 20th-century high-density older homes in varying project manager for Je er- work for medical marijuana in commercial districts that still sur- states of repair. son-Chalmers, said it will take three Michigan after bills stalled in commit- vives in Detroit. Its mix of housing “I sure as heck hope (the designa- months or so for people driving or tee for nearly a year and allow certi ed — from bungalows to three-story tion) has a positive impact, but it walking down East Je erson to start registered nurse anesthetists to prac- mansions — contributes to its po- needs to  ll out a little more,” said noticing improvements, including tice without the supervision of a tential to promote the city’s eco- Cronk, who owns Hello Again Re- the renovation of a former Kresge SEE BILLS, PAGE 34 nomic recovery.  e neighborhood cords and Co ee and (___). “I think it SEE RESTORE, PAGE 33

MUST READS OF THE WEEK Lessons from Reaching out to Money for the trenches ITT’s stranded entrepreneurs Pam Turkin talks Local community colleges MEDC expects a bigger lessons learned from look to help more than budget this year for losing ownership of Just 2,000 students locked programs that support Baked Cupcakes and out of the now-closed ITT startups in their quest to BLOOMBERG how she’s applying them Technical Institute — but grow, Page 5 Detroit Mayor Mike Duggan says he’ll now, Pages 27, 28 it’s not that simple, Page 7 vote for Proposal B, one of two “community bene ts” proposals. 4 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

AARON ECKELS More than 200 Southeast Michigan “expats” plan to return home for Detroit Homecoming this week. 3rd Detroit Homecoming set for this week

Detroit Homecoming, which seeks on host and steering committees. tional “place-making” initiatives at the to re-engage former Detroiters who Detroit Homecoming was honored international Place Marketing Forum’s have made their fortunes elsewhere earlier this year as one of eight interna- 2016 awards. with their hometown, returns for its third edition this week. More than 200 Southeast Michigan “expats” plan to attend the invita- tion-only event, which runs Wednes- day through Friday. Major speakers this year include former Microso Corp. CEO Steve Ballmer; “Hamilton” producer Je rey Seller; and Tony A Fee-Only Wealth Management Group Fadell, one of the creators of Apple’s iPod and founder of Nest, the maker of smart thermostats that helped pioneer the Internet of ings. WXYZ-TV will live-stream the event at Michigan’s #1 Financial Advisor http://wxyz.com/detroithomecoming. Over the past two years, the event has resulted in more than $260 million in pending investments in metro De- troit by the expats. ose outcomes have included an &KDUOHV&=KDQJ expansion of the Wendy Hilliard Gym- &)3Š0%$06)6&K)&&/8 nastics Foundation to the city, and the 0DQDJLQJ3DUWQHU opening of the Will Leather Goods re- tail store in Midtown. 2QHRIWKH1DWLRQ熎V7RS1$3)$5HJLVWHUHG Among the highlights of this year’s )HH2QO\)LQDQFLDO$GYLVRUV program: n A chat between billionaire entre- preneur Dan Gilbert and Ballmer, a Detroit-area native who owns the Los Angeles Clippers. 7+$1.<28 n A conversation on education, race and inclusion, among other top- As we celebrate our 40th anniversary, ics, between Ford Foundation Presi- We Uphold a Fiduciary Stan we thank our clients and supporters. dent Darren Walker and Crain’s Group dard Our team is committed to serving you Publisher Mary Kramer. n A conversation with Oak Park na- 犇犆犇:HVW%LJ%HDYHU5RDG well into the future. tive Seller, the Tony Award-winning 犇犊WK)ORRU  producer of the hit Broadway show “Hamilton.” On ursday evening, 7UR\0,犊犎犆犎犊 Seller will receive the Governor’s Arts 犈犊犎 犌犎犍犇犈犋犎RU 犎犎犎 犍犍犍犆犇犈犌 Award. n A state-of-the-city update by De- troit Mayor Mike Duggan. Attendees will take tours of the city based on the theme of their choice in- www.zhang nancial.com cluding technology, art and design, sports, entrepreneurship and neigh- $VVHWVXQGHUFXVWRG\RI/3/)LQDQFLDODQG7'$PHULWUDGH borhoods, and real estate. Each tour includes a stop at a neighborhood $VUHSRUWHGLQ%DUURQ犑V0DUFK犋犈犆犇犌5DQNLQJVEDVHGRQDVVHWVXQGHUPDQDJHPHQWUHYHQXH JHQHUDWHGIRUWKHDGYLVRUV犑ILUPVTXDOLW\RISUDFWLFHVDQGRWKHUIDFWRUV $VUHSRUWHGLQ Member FINRA/SIPC house. %DUURQ犑V$XJXVW犈犊犈犆犇犋7KHUDQNLQJUHIOHFWVWKHYROXPHRIDVVHWVRYHUVHHQE\WKHDGYLVRUV Crain’s produces Homecoming DQGWKHLUWHDPVUHYHQXHVJHQHUDWHGIRUWKHILUPVDQGWKHTXDOLW\RIWKHDGYLVRUV犑SUDFWLFHV 1$3)$5HJLVWHUHGVWDWXVUHSRUWHGDVRI6HSWHPEHU犇犎犈犆犇犋RQZZZQDSIDRUJ Investment Advisors s (866) 644-2701 s www.GJSCO.com with its duciary partner, Downtown Detroit Partnership, with more than 0LQLPXPLQYHVWPHQWUHTXLUHPHQW犇犆犆犆犆犆犆 20 business and community leaders CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 5 MEDC to provide more money for entrepreneurship, innovation By Tom Henderson Rumors were circulating at last year’s has chipped in $350,000; that he has approve the new fund at its September (MTRAC) grant to support the advanced [email protected] Accelerate Michigan event that it might been able to raise more in corporate meeting, with would-be managers ap- transportation project at UM. e Small Business Development be the last. e MEDC, which had allo- sponsorships; and that he has a com- plying to run it in October. It would fund n $1 million for a new Proof-of-Con- Center, Invest Detroit, Automation Al- cated a total of $1.35 million for the event mitment of $250,000 by Spark to be very-early-stage companies with invest- cept Fund. is will provide awards of ley and TechTown are some of the ben- in 2014 and 2015, had its budget cut by one of the investors in the grand prize ments of between $50,000 and $100,000. between $5,000 and $30,000 to help de- eciaries of a budget increase for sup- 27 percent for scal 2016 by state legisla- of $500,000 for the winning pitch, and n $1.4 million for the Michigan Cor- termine if a promising idea has com- port of entrepreneurship and tors and laid o 65 employees. a commitment of $150,000 from De- porate Relations Network, which mercial possibilities. innovation by the Michigan Economic Dober said that despite the reduc- troit-based Invest Michigan. helps the private sector nd and use n $525,000 MTRAC grant for the ad- Development Corp. for the scal year tion in MEDC funding, this fall’s event He said the prize money this year university researchers. vanced materials program at Michigan that begins Oct. 1. is on solid nancial footing. Invest De- will likely surpass the total of $845,000 n $1.3 million for SmartZone grants. Tech University. According to Emily Guerrant, MEDC troit replaced Ann Arbor Spark as the last year and could hit $1 million. n $1.2 million for the Technology n $500,000 for Automation Alley 7C’s vice president of marketing, the budget event’s duciary in 2013 and has taken Other recipients of support from Transfer Talent Network, a program Program — the seven are concept, for entrepreneurship and innovation over management of the event. Molnar’s budget include: run by the University of Michigan that context, community, clarity, custom- has been increased from $19 million in He said there is $200,000 remaining n $2 million for a new fund, the First provides experienced business men- ers, capital and commercialization — the current scal year to $21.4 million, from MEDC’s previous commitment Capital Fund. While the money is allo- tors to startups. which helps startups land customers. while the overall budget for the MEDC that wasn’t spent; that the New Econo- cated in Molnar’s budget, he said the n $1 million Michigan Translational Tom Henderson: (313) 446-0337 was cut by $1.5 million by legislators to my Initiative for Southeast Michigan Michigan Strategic Fund board has to Research and Commercialization Twitter: @TomHenderson2 $251.9 million. "So it’s fair to say that entrepreneurial services and programs were a higher 6SRQVRU&RQWULEXWHG&RQWHQW priority in the scal year 2017 budget than previously," she said.  1& 0*(&+$ According to Fredrick Molnar, MEDC vice president of entrepreneurship and !&ƛ"/"+ " innovation, the Small Business Devel- ,,$)"620&+"00ǿ "10 opment Center is the largest beneciary, ǖ 20&+"00"0+!#/+ %&0"01%" getting a total of $4.8 million for several of its programs, including $2.1 million "01"5-,02/"#,/), )&7"!-/,!2 1 for its Emerging Technologies Fund and +!0"/3& "00"/ %"0ǽ $1.2 million for its Business Accelerator 201,*"/1 %ǿ)),40 Fund. Ǘ 20&+"00"01,&+-211%"&/ e SBDC is based at Grand Valley "*&))&01&+1,!,/!01,0"/3" State University in Grand Rapids, with 11 regional oces and more than 20 sat- 201,*&7"!!01,1%"&/ ,+1 10ȡ ellite oces. It provides counseling, 02 0 /& "/001%"602/#1%"4" ǽ training and research for startups, exist- , &)&!",ǿ%"*,01 ing small businesses and advanced ǘ &*- 1#2)0, &) %++")#,/ technology companies. 0*)) 20&+"003&!",0&0  " ,,(Ǿ ǙǛʢ,#0"/ %"0,+ Two of Invest Detroit’s programs will 4&1%,22 "-/,'" 1"!1,0"" benet — its Hacker Fellowship Pro- ,,$)"/"), )ǽ gram will get $300,000 over two years, 1%"*,01$/,41%&+-&!3&!", and $100,000 in sponsorship money has -/,*,1&,+ 6,4+"/0ǽ been earmarked for November’s sev- )1Ǿ*,!"/+!"0&$+ǿ enth annual Accelerate Michigan Inno- Ǚ &*-)"Ǿ )"+4" 0&1"!"0&$+ vation competition at Cobo Center. +!*, &)"Ȓ#/&"+!)6 ,!&+$*("  “ e Hacker Fellowship Program has  done a great job at talent retention,” said 0*)) 20&+"00"0),,($,,!,+   Molnar. “We’re trying to keep our young 0*))!"3& "0ǽ ,,$)" /"0 ,21 $,1, ,*-"1&1,/ talent here. ey come out of college 1%&04%"+/+(&+$0&1"0Ǿ+!0,!, and all they think about is the East Coast 201,*"/0+!-/,0-" 10ǽ &#1%"6%3"-,,/ or the West Coast. We’re saying, you *, &)""5-"/&"+ "ǽ don’t have to leave here.” ,4+),!,2/4%&1"--"/ According to Martin Dober, vice pres- 1,)"/+*,/"ǿ ident and managing director of Invest Detroit Ventures, the investment arm ,+"2-4" ǽ ,*ȡ /&+0 of Invest Detroit, a nonprot economic development organization, the program puts graduating computer science grad- uates into one-year fellowships at Mich- igan startup companies. “College students aren’t aware of 4&*4&1%0%/(0 startup opportunities in the state and of- %",+)&+"*/("1&+$1/"+!01%1/"%")-&+$0*)) 20&+"00"0 ,*-"1"&+ǗǕǖǛ ten leave because of that, and startups don’t have the time to recruit for junior 6+"2-4" %"0*/1-%,+"&01%"+"4!"0(1,-ǽ #/+ %&0"), 1&,+0%3"1%"&/-/,#"00&,+) development talent on campuses,” he ,+"2-4" ǽ ,* "/ %"03&0*/1-%,+"0,3"/1,,(1%,0" -/"0"+ "&+,+)&+"), ))&01&+$01,1%+( said. “We annually recruit a class of 15 +,/!"/1,$"11%"&/+*"&+#/,+1,# #/,*!"0(1,- ,*-21"/0)016"/ǽ*)) #,/ 1%" *',/&16 ,# 1%"&/ /"3"+2"ǽ /"1 computer science graduating seniors. ... )/$" 2!&"+ "Ǿ 20&+"00"0 !,+ȉ1+""! 20&+"00"01%11/$"10*/1-%,+"04&1% ), ))&01&+$0/")&("%3&+$#/""Ǿ$&+1 In two years of running the program, all *"00$&+$ +! %3" 4" 0&1"0 1%1 ),,( &)) ,/!,+ Ȓǜǚǽ 30 fellows have received jobs at Michi-  *&))&,+Ȓ!,))/ 2!$"1 #,/  +1&,+) $,,!+!#2+ 1&,+ -"/#" 1)6 ,+ 0*)) 20&+"00"0 /" gan startups. Last year, we asked our 15 1")"3&0&,+! *-&$++6*,/"ǽ "/0,+)&71&,+ǽ fellows how many of them would have %1ȉ0 " 20" ,+02*"/0 +! 0 /""+0/"0""&+$/"02)10ǽ 0"$*"+1&+$"*&) *-&$+0Ǿ /"1&+$ been working outside of Michigan had it !" &0&,+Ȓ*("/0 /" )/"!6),,(&+$ &!", &01%"+"4/1& )"ȡ ),$ -,01ǽ 201,* ,+1"+1Ǿ +! 0"/3&+$ 1/$"1"! not been for the Hacker Fellows pro- ,+)&+" #,/ 1%" -/,!2 10 +! 0"/3& "0 &!", %0 +"3"/ ""+ )"00"5-"+0&3" *, &)" !0Ǿ/"&+#,/ &+$ 1%" &!" 1%1 gram. irteen of the 15 fellows raised 1%1 + %")- 1%"*ǽ %1 *("01%" 1, -/,!2 " ,/ *,/" 3)2 )" 0 0*))"/ 20&+"00,ƛ"/-"/0,+)1,2 %+! their hands.” &+1"/+"1$/"1!"*, /1&7"/Ǿ"3"+&+$1%" ,+1"+1ǽ3"/ 14,Ȓ1%&/!0 ,# 1%" 4,/)!ȉ0 02-"/&,/ 201,*"/0"/3& "ǽ Dober said Invest Detroit will recruit -)6&+$Ɯ")!#,/0*))+!*"!&2*Ȓ0&7"! *, &)" !11/ƛ&  4&)) "3&!", ",-)"),,(,+)&+"1,0,)3"1%"&/ the 2017 class of fellows this fall and 20&+"00"0ț0Ȝ +! )),4&+$ 1%"* 1, 6 ǗǕǖǝǾ +! ,22 " &0 )/"!61%"ȱǗ match them with companies in the 0"/ %"+$&+"ǽ -/, )"*0Ǿ+!0 + "%&$%)6 ,*-"1"#,/11"+1&,+4&1% "11"/Ȓ(+,4+ 3&0& )"1%"/"ȕ#,/#/ 1&,+,#1%" spring. , )&71&,+ǽ"/)6 "3"/6 *"/& + e program has also received nan- /+!0ǽ ,01,#1/!&1&,+)! *-&$+0ǽ %0 3,& "Ȓ.2"/&"! 1%"&/ 0*/1-%,+" ,/ cial support from the Community Foun- "/" /" #,2/ )"!&+$ 1/"+!0 #,/ ǗǕǖǛ ("6"! &+ Ȋ-&77 &+ ȝ1,4+Ȟȋ &+1, ,,$)"Ǿ dation for Southeast Michigan and the 1%1  /" *(&+$  !&ƛ"/"+ " +,4 #,/ &RQWHQWVXSSOLHGE\VSRQVRUQRWWKHQHZV Ford Motor Fund. 0&+3"01"!&+1%"&/,+)&+"-/"0"+ "ǿ &+$,/%,,ǽ+6), ) 20&+"00"0+! WHDPDW&UDLQpV'HWURLW%XVLQHVV 6 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 M-1 Rail in talks with unnamed donor that would provide $5 million in funding By Bill Shea place long before the deal was an- land, Macomb and Washtenaw coun- [email protected] nounced in May 2015. e money was ties in November to approve a property e M-1 Rail streetcar project in De- factored into a 2014 funding source tax that would raise $3 billion over 20 troit said it’s in talks with an unnamed accounting provided to Crain’s at the years to pay for improved mass transit, donor that will provide an additional time, but its purpose wasn’t disclosed. including the QLine’s operations. $5 million for the Woodward Avenue “ e naming agreement was prior e streetcar line not having the full line’s funding. to kicko of construction in 2014,” Li- 10 years worth of operational funds Project organizers are declining to jana said. banked spooked those involved in the name or characterize the donor other at the online mortgage lender RTA, and that organization in recent than to say it’s a single entity. owned by Dan Gilbert bought the weeks opted to push back by three “ e nature of this specic contri- naming rights wasn’t a surprise; Gil- years the date when it would assume bution is not yet nal, so it’s too early bert has been the streetcar project’s control of the streetcar line. It originally to say exactly how it will be character- co-chairman (with Roger Penske) intended to take the line over in 2024. ized,” M-1 Rail spokesman Dan Lijana nearly since its 2008 inception. M-1 estimates it will cost an average said via email. Quicken is the largest nancial con- of $5.8 million to run the streetcar line e money is being counted al- tributor, at $11.4 million, after the during its rst 10 years. M-1 Rail CEO ready as part of the project’s Troy-based Kresge Foundation ($49.6 Matt Cullen predicted that fares and $187.3 million in funding to cover con- million) and a pair of federal grants other revenue, such as from advertis- struction, administrative and operat- totaling $37.2 million. ing, will cover half of the operating ing costs. at’s nearly $8 million more e streetcar project, which is ex- costs each year, and the remainder than M-1’s funding total in 2014, which pected to begin passenger service in would be paid from a reserve fund. was $179.4 million. Also fueling the in- the spring, has enough money on Based on that formula, M-1 needs to crease over the past two years is hand to cover its $142 million in capi- raise $8.7 million for the reserve fund $1.4 million more from Detroit-based tal costs. Operational costs remain a to cover the remaining three years of Quicken Loans Inc.; $1.4 million in ad- problem, however. operations. at’s predicated, too, on ditional proceeds from federal New M-1 executives on Sept. 1 revealed the ridership predictions to meet or Market Tax Credits; and interest. that they have $21.4 million stashed exceed expectations. e streetcar line’s mix of private away for operations, enough to cover To boost the reserve fund, Cullen and public funding is from founda- seven years of service, but need to nd said M-1 will approach larger employ- tions, corporations, hospitals, univer- enough for three more years, which ers along the route, which runs from sities, banks and governments. would take the system through 2027. Grand Boulevard to Congress Street, M-1 Rail also disclosed that the at’s the year M-1 has agreed to turn who would buy bulk passes for em- $5 million naming rights fee paid by over the system to the public Regional ployees. at could include Wayne Quicken Loans to brand the 6.6-mile Transit Authority of Southeast Michigan, State University and the College for streetcar loop as the QLine was in which will ask voters in Wayne, Oak- Creative Studies, and major employ- ers such as hospitals and corporations. Ridership in the rst calendar year is expected to reach 1.8 million, and 5 million within ve years, M-1 Rail COO Paul Childs said on Sept. 1. He noted that the numbers are rides, not unique numbers of passengers. Orga- nizers predict 5,000-8,000 riders a day, Immigration Experience with a basic one-way fare of $1.50. Yearly and other types of passes, in- ® cluding fare cards that link to other transit systems, still are being worked In Your Corner. out, Childs said. M-1’s plan is a mostly curbside Ŷ Nonimmigrant visa petitions. xed-rail streetcar circulator system, co-mingled with trac, with 20 sta- Ŷ Family and employment-based tions at 12 stops. e two-car streetcar trains, operated by drivers, will move permanent residence petitions. at the speed of trac, and an end-to- end trip is predicted to take about 25 minutes, M-1 said. Detroit’s other major downtown transportation systems move millions of riders annually. Last year, the Detroit People Mover carried 2.4 million passengers along its 2.9-mile elevated downtown loop. It has 13 stops and a full loop takes 15 minutes, using two-car automated trains. Its nancial report for scal 2015 shows that it had $15 million in reve- nue but $22 million in expenses. e decit was made up via $4.3 million from the state, $6.5 million from the city, and other smaller grants and sub- sidies. Farebox revenue last year was $1.4 million. A ride is 75 cents. e Detroit Department of Trans- portation’s No. 53 bus route on Wood- ward carries about 3 million passen- gers annually, the largest total of its 25 million annual riders systemwide. at translates into nearly 12,500 rid- ers a day. e base DDOT fare is $1.50. Contact Nina Thekdi at [email protected] Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 7 SE Mich. community colleges o er help to displaced ITT students

By Chad Halcom fast-growing careers,” WCCCD Chan- this dicult transition,” MCC provost [email protected] cellor Curtis Ivery said in a statement. James Sawyer said. “However, we Local community colleges are mov- “Our mission has always been to will have to work through each stu- ing quickly to o er help for associate provide pathways to better lives The ITT Technical dent’s situation on a case-by-case and vocational-technical students dis- through higher education, and we Institute campus in basis, since there wasn’t an estab- placed amid the demise of ITT Techni- are mobilizing to help those stu- Dearborn was in a lished transfer agreement in place cal Institute last week — but there dents carry on their studies — start- 60,000-square-foot with ITT.” may be only so much they can do. ing today.” building on West Macomb dean of student “It does t into our wheelhouse Wayne County Community College Outer Drive. queries should go to (586) 445-7408 quite well, and in this market there is a said it was inviting displaced ITT stu- PHOTO BY COSTAR GROUP INC. or [email protected]. tremendous need to ll a skills gap. dents to view its information-technol- criminal justice programs. inquiries to its dean of students via Wayne is directing queries to (800) e demise of ITT only increases that ogy, computer science, business and Macomb Community College, email or phone, the college said in a 300-2118 or [email protected], gap,” said Chancellor Timothy Meyer health care course o erings, while which began full-semester fall instruc- statement. and OCC is directing queries to (248) of Oakland Community College, which Meyer said OCC may seek to direct tion Aug. 22 but still has 12- and eight- “Macomb Community College is 341-2000 or [email protected]. is organizing a workshop event Sept. some students toward its IT and health week courses starting Sept. 19 and Oct. committed to helping our communi- Chad Halcom: (313) 446-6796 19 at its Auburn Hills campus to orient care along with skilled trades and 17, is directing all ITT student transfer ty’s displaced ITT students through Twitter: @chadhalcom potential ITT transfer students. “But therein lies the diculty. eir (ITT’s) accrediting body has attested that they were not in compliance, so we cannot accept those credits those students completed as it relates to pur- suing an OCC degree. And unfortu- nately they do not have a direct-match- ing capability to equate their credit value to our credit value.” With that in mind, OCC is prepared to consider scores on the College Level Examination Program, along with its own internal “Compass” placement tests in English and mathematics, among other things, to demonstrate competencies and place out of cours- es already taken and expedite getting a degree, Meyer said. More than 2,350 students attended Carmel, Ind.-based ITT’s three local campuses in Dearborn, Troy and Can- ton Township during the 2014-15 school year, based on unduplicated headcount data for those locations from the National Center for Educa- tion Statistics. Full-time equivalent enrollment was just over half that, however, and skewed about 62 per- cent male and more than 40 percent African-American in the region. PEACE OF M ND Parent company ITT Educational Services Inc. announced Sept. 6 it had closed all 130 of the Technical Institute campuses in 38 states nationwide, lay- ing o most of its 8,000 employees and displacing more than 40,000 students based on 2014-15 enrollment. e U.S. Department of Education announced late last month it would not allow ITT to enroll new students who use federal nancial aid, since the Accrediting Council for Independent Colleges and Schools found as ITT’s accreditor that it was not in compli- ance and unlikely to become compli- ant with its standards. Potential ITT transfers can attend the Sept. 19 meeting or make appoint- ments with faculty advisers as sched- ules permit, Meyer said. Because fall See how happy employees make for a healthy business. semester instruction has begun, some courses may be available for late starts At Aflac, we know keeping employees engaged never goes out of style. Which is why in the next couple of weeks but many we oer coverage that extends to family members, with flexible enrollment periods and others likely have to wait until winter no invasive health screenings. And with One Day Pay,SM we make it a priority to pay claims semester, he said. as fast as possible — in 2015, Aflac paid 1.2 million One Day PaySM claims. Because when Also o ering to help ITT students is your employees are at their best, so is your business. See what Aflac can do for your Wayne County Community College District, which said in a statement last business at aflac.com/peaceofmind week that fall 2016 registration is still available and “Flex Entry” classes be- gin Oct. 18. **One Day PaySM available for most properly documented, individual claims submitted online through Aflac SmartClaim® by 3 p.m. ET. Aflac SmartClaim® not available on the following: Disability, Life, Vision, Dental, Medicare Supplement, Long-Term Care/Home Health Care, Aflac Plus Rider, Specified Disease Rider and Group policies. Aflac processes most other claims in about four “We have committed sta to help- days. Processing time is based on business days after all required documentation needed to render a decision is received and no further validation and/or research is required. Individual ing students displaced by the ITT Company Statistic, 2015. Individual coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, individual coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road I Columbus, GA 31999. Technical Institute closure to continue Z160115 3/16 their education without disrupting their pathway to rewarding and 8 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

OPINION Revenue sharing’s ticking budget bomb

ichigan has been sharing sales tax revenue with local governments since the 1940s. e formulas have been tweaked over the years, and Mpayments have been reduced occasionally to adjust to budget shortfalls and potential decits. Today, the state distributes 48.9 percent of sales tax revenue it collects. Sounds fair, right? Almost 50-50? But in a lawsuit led last week in the Michigan Court of Appeals, public interest lawyers argue that the state has improperly counted other payments made to local governments against their revenue-share payments, cheating locals out of billions of dollars and pushing some closer to insolvency and state emergency management. Make no mistake. is is a big legal challenge. And it starts with the late Richard Headlee, the insurance executive who successfully persuaded Mich- igan voters in 1978 to adopt a tax limitation amendment to the state constitu- tion. e so-called Headlee Amendment limits state revenue to a xed per- LETTER centage of state personal income — just under 10 percent. But it also required the state to pony up dollars to pay for new programs or services it required local governments to perform. Lansing must deal with unfunded liabilities John Mogk, a professor of state and local government law at Wayne State University, started researching the potential violations, and a cohort of others Editor: lion general fund decit. e needed joined in. It’s time for Lansing’s policymakers Send your letters: Crain’s Detroit cuts to balance the budget would weak- is public interest team, Taxpayers for Michigan Constitutional Govern- to take action on unfunded pension Business will consider for publication all en our ability to deliver services, includ- ment, alleges that the state has been improperly subtracting payments to and health care liabilities — a new red- signed letters to the editor that do not ing public safety services. school districts and charter schools, for road maintenance on major ink menace that threatens to swamp defame individuals or organizations. Indecision and inaction are not op- trunklines and from dollars paid to meet new state mandates. Michigan’s municipal budgets. Letters may be edited for length and tions. Reform is needed and it is need- What does this mean to business? Unfunded liabilities — the gap be- clarity. ed now. On the plus side, if the challenge succeeds, it means more money to spend tween a pension plan’s estimated ben- We must cap the ability for these li- Email: [email protected] on local roads, public safety and other services that make communities an ets and assets that have been set abilities to grow, and we must restruc- attractive place to do business. aside to pay for them — are poised to to ensure that there isn’t a liquidity is- ture the amortization and debt hori- But if there’s a big state budget hole, it also could mean lawmakers will sap the budgets of our state’s cities, sue in the coming years. But this issue zons on the unfunded liabilities for search for new sources of revenue — and an increase in business taxes could towns and villages. Consider, for ex- is bigger than any one Michigan com- communities across the state, so that follow. But not anytime soon; two earlier and successful Headlee Amend- ample, how they would impact the city munity; there have been fundamental they can have manageable payments ment challenges took years to be decided, in part because state government of Port Huron. Here, that gap towers at aws in the ways government pension to ensure both the ability to deliver has no burning desire to change a revenue formula that leaves a billion-dollar about $140 million — $103 million for funds were set up, and also unrealistic quality essential services to our citi- hole in its budget. pensions and $37 million for retirees’ estimates placed on anticipated annu- zens and also fulll the promises we So why the challenge now? Local governments need more money. When health care costs. at means our pen- al investment returns. A system that made to our workers and retirees. the real estate market collapsed in the late 2000s, property tax revenue nose- sion system maintains a 40 percent has been propped up with creative At core, this is a fundamental moral dived, crippling many local government operations. ere is no easy answer funding level. math is crumbling. issue. Future generations and history here, even if property values soared to pre-downturn levels. If the court agrees In Port Huron, every budget decit As a result of not solving this de- will judge our stewardship. with the plaintis, the state will be ordered to pay back money to local govern- the city has faced and corresponding ferred problem, annual payments to I call upon the governor and Legisla- ments, within a statute of limitations. As with an earlier successful challenge, operational cuts are directly linked to keep these government funds aoat ture to join us, work with us. Let’s solve the state may opt to increase the share of sales tax revenue. But it will need our ballooning annual payments on will drastically increase while revenue this so that we can free the next genera- new tax dollars to make that work — or a substantially smaller budget. unfunded liabilities. Because unfund- stagnates, creating massive and un- tion from this crushing burden. One thing is clear: Any new spending enacted in Lansing, any new man- ed liabilities have grown so much in sustainable decits. If nothing is done James Freed date until this is resolved, will only dig a deeper hole. Business needs to re- the past 15 years, fund managers have to address this issue, within three years City manager, chief administrative o cer mind lawmakers of the basics of a balance sheet until this is resolved. had to shorten amortization periods the city of Port Huron will face a $3 mil- Port Huron A tale of two cities Everyone remembers far too vividly else in the auto industry, are looking is is something that was creat- Detroit is a Renaissance City. e what this city was like a few years ago. at another record year. Downtown ed by my friend Jim Hayes, retired changes and the investments have e national economy was on re and Detroit is hot. Young people are stay- publisher of Fortune and someone been signicant and visible. Just about Detroit was in the doldrums. Dan Gil- ing, not leaving, and new businesses who spent a lot of time in Detroit everyone who lives here knows about bert was still busy making his rst bil- are popping up every week. Govern- with my enthusiastic support. To- it and sees it every day. We’ll be host- lion, the Ilitches were busy with their ment, with our new mayor, is actually gether we launched Detroit Home- ing these ex-Detroiters, as our guests, hockey team and Detroit politics were keeping in step with Detroiters. e coming. It was a simple idea. Let’s to learn about the new Detroit. In a a complete mess with a mayor under city is alive and well, and there is a lot KEITH CRAIN invite back some folks who grew up couple of days, they will be pleasantly indictment and many of his minions of economic activity in and around Editor-in-chief here and left to make their fame and surprised at what they discover. It is heading for jail. the city. fortune somewhere else. Publisher exciting to watch Detroit Homecom- e city was a mess, and when two Local media know full well what’s Mary Kramer is a co-director with ing in its third iteration; we will add of our car companies went bankrupt, going on, and stories abound on journalists often write the same stories Jim keeping Detroit Homecoming this year’s guests to the few hundred or the world knew all about Detroit, and broadcasting outlets and in print every and assume that nothing has changed alive and well. We invite a couple of so who have experienced these chang- it wasn’t pretty. day. in our city. hundred expatriates back for a few es during the past two events. Fast forward to today and it’s a com- Sadly, the nation and the world still is week, we’ll try to change that days and a new look at their city, De- Detroit is a tale of two cities. All we pletely dierent picture. e three think that Detroit is bogged down in perception with the third Detroit troit. ere have been a lot of sur- have to do is make sure the rest of the auto companies, along with everyone 2006 or 2010. Some of the national Homecoming. prises, all good. world knows about the real one. CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 9 Gemphire CEO Sooch: IPO funds will fuel research, stang By Tom Henderson ceutical companies. ey know you’re order that causes levels of low density where you plan phase 3 trials. 2 trials. We’ve got a ton of data, a lot of [email protected] a real company with a real team. You lipoprotein, the so-called bad choles- which hasn’t been published. We were On Aug. 5, after a six-week delay don’t get that as a private company. terol, to soar), on patients with elevat- You’ll need to raise more money, ob- hearing, ‘Where did you people come caused by market uncertainty over the And we had built a team that was ed LDL levels who are already being viously, to fund phase 3 trials and go to from?’ You engage in di erent discus- United Kingdom’s vote to exit the Eu- ready to run a public company. I’m treated with statins and on patients market. Do you do a secondary oer- sions with people about ways you can ropean Union, Gemphire Therapeu- glad to be on the other side of what with severely high levels of tri- ing in 2018? work with them. Now we’re on their tics Inc., which had been a challenging process. Al- glycerides who are being treated with We’ve said in our lings that we’re radar screen. We need to commercial- has licensed a though we raised less than we origi- statins. going to need $100 million to get to ize Gemcabene globally, and we cardiovascular nally anticipated, we now have We have enough capital to get us market. We could do a public nanc- can’t do that alone as a small compa- drug called Gem- enough capital to execute our plan. through the rst half of 2018. We’ll be ing. We’ve talked to dozens of poten- ny. It could be M&A, where Gemphire cabene from P z- able to fund all three of those phase 2B tial strategic partners. We met in the gets bought. It could be a license er Inc., had a pub- What kind of runway does that trials. Each study is a shot on goal. We last year with every important player deal, where a pharmaceutic company lic o ering of $30 amount of money give you? Your SEC don’t want to replace statins. We want in the space. Gemcabene wasn’t takes the rights and we continue de- million and be- lings detail upcoming phase 2B trials to be the drug that is used as an add- known out there. People didn’t know veloping other compounds. We can do a gan trading on on patients with homozygous familial on. en we’ll have our end-of- its history with Pzer, that it’s had 18 the Nasdaq Glob- hypercholesterolemia (a genetic dis- phase-2 meetings with the FDA, human trials, seven of which are phase SEE GEMPHIRE, PAGE 10 al Market under the symbol Mina Sooch: Plans to double GEMP. at was company’s sta. considerably less than the $60 mil- lion the company rst mentioned in regulatory lings in April and less than the target of $45 million set for the rst IPO date in June. Company President and CEO Mina Sooch, named in June by Crain’s as one of the 100 most inuential women in Michigan, talked about what’s next for the company. She talked from Gemphire’s spacious new oces in Laurel Park in Livonia, having moved out of cramped space in Northville.

Congratulations. I saw that Jee- ries, RBC and Canaccord Genuity have all rated Gemphire as an outperform and are telling clients to buy. You’re one of the few biotechs nationally that have gone public this year that are trading above their opening price. ank you.

You’re hiring, I assume. We’ll be doubling our sta from nine by the end of the year, mostly clinical-related.

It’s been a tough year for biotech IPOs. What was a hot sector two or three years ago has cooled dramatical- ly. The Brexit vote and its market reac- tion forced you to delay your oering, When your business grows, and that was followed by Esperion Therapeutics, another cardiovascular drug company in Southeast Michigan, your expectations should, too. reporting news that sent its share price tumbling. Was there ever a point where you thought you wouldn’t be able to get the oering done? Experience a higher level of cash management Of course. But we had a lot of per- sistence and great anchor investors. with the leading bank for business.* I’m proud we’re one of the few bio Your business is growing, but so is the complexity. At your stage of growth, you need a IPOs to get done this year, and the only financial partner who can help you streamline your systems and maximize your opportunities. one in Michigan. It was tough, but we did it. I was on the phone with our Comerica Bank’s dedicated Business Advisors and comprehensive cash management tools board of directors almost every day in go beyond payables and receivables to help you manage and grow your business. the month of July. Some of the discus- sions were around whether we should For more info, visit Comerica.com/cash today or call 888.341.6490, and do a private fundraising round, in- Raise Your Expectations of what business banking can be. stead, which we certainly could have pulled o . A reverse merger was an- other option. But an IPO was always our preferred option.

Why not just raise a venture capital round and wait a year or so for the bio IPO market to improve? ® From a shareholder perspective, MEMBER FDIC. EQUAL OPPORTUNITY LENDER. RAISE YOUR EXPECTATIONS. you get a better valuation in a public *Comerica ranks first nationally among the top 25 U.S. financial holding companies, based on commercial and round, as opposed to a private round. industrial loans outstanding as a percentage of assets, as of December 31, 2015. Data provided by SNL Financial. CBP-6105-04 06/16 And being on a public platform gives us a larger prole with the big pharma- 10 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 Allergan buys Ann Arbor-based RetroSense for $60 million-plus Wayne State spino’s drug uses gene therapy to restore vision to blind

By Tom Henderson its lead drug, which has the working rare, inherited genetic disorders char- blindness. It began human trials in rmary in Boston. [email protected] name of RST-001 and targets retinitis acterized by progressive peripheral vi- March. In June, the MIT Technology Review Allergan plc, a global pharmaceuti- pigmentosa. sion loss and night vision diculties e drug uses the same gene, chan- named RetroSense to its annual list of cal company, said it has bought Ann “e acquisition of RetroSense and followed by eventual central vision nelrhodopsin-2, that helps pond scum the 50 smartest companies in the Arbor-based RetroSense Therapeu- its RST-001 program builds on Aller- loss and blindness in many cases. nd light for photosynthesis. world. It was the only company based tics LLC, a clinical-stage biotechnolo- gan’s deep commitment to eye care About 100,000 people living in the U.S. RetroSense is based on the research in Michigan to make the list. It rated gy company that hopes to use gene and our focus on investing in have the disorder. Currently, there are of Zhuo-Hua Pan, a professor of oph- RetroSense at 37th, ahead of such therapy to restore vision to the blind. game-changing innovation for retinal no approved therapies for the preven- thalmology and anatomy/cell biology well-known tech companies as IBM Dublin-based Allergan (NYSE: conditions, including retinitis pig- tion or treatment of RP. at Wayne State and scientic director (45), Snapchat (46) and Intel (49). AGN) has paid RetroSense, a 2009 mentosa, where patients desperately RST-001 has shown in animal trials of the Ligon Research Center of Vision In 2014, the U.S. Food and Drug Ad- spino from Wayne State University, a need treatment options,” Brent Saun- that its gene-based therapy can create at the Kresge Eye Institute in Detroit. ministration granted orphan-drug sta- $60 million upfront payment and ders, Allergan’s CEO and president, new photosensors in retinal cells Subsequently, the company also li- tus for RST-001, making it eligible for agreed to future payments as the com- said in a news release. where previous deterioration of rod censed research by Richard Masland various incentives, including a waiver pany hits development milestones for Retinitis pigmentosa is a group of and cone photoreceptors had caused of the Massachusetts Eye and Ear In- from the FDA’s application user fees and tax incentives. In April 2015, RetroSense, which has raised $13 million in two rounds of funding, was named as the most inno- vative company to be launched with funding from angel investors at the an- nual Angel Capital Association con- vention in San Diego. “e RST-001 program and its opto- genetic gene therapy approach could “HOW DOES DTE ENERGY be a real breakthrough in the treat- ment of unmet needs across a host of retinal conditions, including RP,” said KEEP NATURAL GAS SAFE?” David Nicholson, Allergan’s chief re- search and development ocer. “e team at Allergan is excited by the pros- pect of advancing an entirely new ap- Customer safety is our highest priority. That is why we take many precautions when proach in the treatment of retinal dis- delivering natural gas to over 1.2 million homes and businesses across the state. We inspect eases, and this technology is highly nearly 10,000 miles of pipeline each year using advanced technologies, and modernize about complementary to our ongoing devel- opment programs in this critical treat- 100 miles of pipeline annually. We also add an ingredient that makes natural gas smell like ment area.” rotten eggs, making it easily identifiable in the case of a leak. “Allergan was the most compelling partner and the best strategic t to ad- vance the development of RST-001 If you smell natural gas or suspect a leak, do not use electronic devices or open flames, and maximize the potential for this leave the area immediately, and call DTE Energy at 800.947.5000 24 hours a day. technology platform,” said Sean Ainsworth, RetroSense’s former CEO, who will continue to head the RST-001 program for Allergan. RetroSense’s development team of four will continue to be based in Ann Arbor.

GEMPHIRE FROM PAGE 9

nondilutive partnership, where we get funded based on hitting certain mile- stones.

You mentioned putting a team to- gether that was ready to run a public company. I know Charlie Bisgaier, your chief science o†cer and company co-founder, is on the patent for Gem- cabene and talked Pzer into licensing the rights. Who are some more recent additions? Seth Reno is our chief commercial ocer. He has 26 years of experience and was at AstraZeneca, MedImmune and Wyeth. Rebecca Bakker-Arkema, our vice president of product and clini- cal experience, has 30 years of experi- ence. She was at Parke-Davis and Pzer.

Do you feel like you put your money where your mouth is with this IPO? Both I and Charlie made a signi- cant additional investment into the IPO — half a million dollars each. We believe in the company’s product and prospects. 11 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 SPECIAL REPORT: ARTS & CULTURE FALL ARTS PREVIEW

Theater, dance, opera, museums and more: Southeast Michigan cultural options are exploding. In this  rst-ever arts preview, Crain’s goes behind the curtain with our partner, CultureSource, to highlight some of the best cultural o erings this fall. Arts groups on these pages are reaching out to  nd new audiences, from millennials to wealthy potential donors. You might  nd a new experience within this section – for you, your employees or your customers.

Clockwise from top: “The Book of Mormon” at Fisher Theatre (photo by Joan Marcus); Eisenhower Dance presents its “December Dances” show (photo courtesy CultureSource); “Inner Core,” a solo exhibition of works by Tom Phardel at Simone DeSousa Gallery (photo courtesy Simone DeSousa Gallery); “A Christmas Carol” at Meadow Brook Theatre (illustration by Chet Johnson); conductor Simon Rattle at University Musical Society in Ann Arbor (photo courtesy CultureSource); and “Art for the Holidays” at the Detroit Artists Market (photo courtesy CultureSource). 12 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 SPECIAL REPORT: ARTS & CULTURE ‘Carmen’ and concertos: Guide to fall arts in metro Detroit The listings on this page and in a new section of CrainsDetroit.com are part of a new Berlin Philharmonic at University Musical Society partnership between Crain’s Detroit Business and CultureSource, the regional ‘Carmen’ at Fisher nonprot membership organization for arts and cultural organizations. Crain’s will add Theatre CultureSource’s vast listings of arts and cultural events to the CrainsDetroit.com website and will feature select listings in its “10 Things to Do” section, highlighting specic events in Crain’s e-newsletters on Fridays and Saturdays. For more information about CultureSource membership, visit culturesource.org.

Events highlighted with blue dates here were compiled by CultureSource. Others were compiled by Crain’s sta to represent a complete look at fall arts in Detroit.

Sept. 20-April 30, 2017 Taste of Detroit” Opening Night often credited for helping Finland “I See Me: Re ections in Black Dinner, Max M. & Marjorie S. Fisher develop a national identity during its Dolls.” e Charles H. Wright Museum Music Center, 5:30 p.m. Guest chefs struggle for independence from of African American History presents from Detroit restaurants Grey Ghost Russia, and he is one of the rst African-Americans as depicted and Antietam and Birmingham’s e Finnish composers to reach an through the craft of dolls since the late Bird & e Bread will present a international audience. www. 19th century . e exhibit includes the three-course dinner before a concert macombcenter.org collection of Leo Moss, who made in the adjoining Orchestra Hall. www. character dolls while a slave, as well as dso.org Oct. 8 fashionable dolls all the way through e 2016 Wright Gala, 7 p.m. Last the introduction of the newest Sept. 29-Dec. 17 year’s celebration of the Charles H. American Girl doll, Motown’s own “Morning After Grace.” Chelsea’s Wright Museum of African American ‘I See Me’ at Charles H. Melody. www.thewright.org The Purple Rose Theatre Co. is known History’s 50th anniversary, which Wright Museum for a quarter-century worth of raised more than $1 million for the Sept. 22 boundary-pushing works, and this museum, is a tough act to follow. But “Jazz in the Streets of Old Detroit,” fall’s world premiere comedy by Carey the museum’s sixth annual gala Detroit Historical Museum, 6-9 p.m. Crim about two people who wake up promises to entertain and enlighten Listen and sway to the jazz tunes from the morning after a one-night stand — and bring patrons to the museum the Al McKenzie Trio, native Detroit — and a funeral — is no exception. grounds itself. e event features a musicians who have played with the www.purplerosetheatre.org/ performance by Damien Escobar, an likes of Aretha Franklin and the whats-on-stage/ African-American violinist who was Temptations, as the museum’s black the youngest student accepted into historic sites committee takes the Oct. 5 the Juilliard School of Music, audience back in time with their new Detroit Robot Factory opens in graduating at the age of 13. It also quarterly music series. www. Eastern Market. Ann Arbor-based oers additional entertainment, a detroithistorical.org 826michigan opens its creative strolling dinner and desserts. www. writing and tutoring lab with a month thewright.org Sept. 29 — 826 hours to be exact — of planned “Mark Mothersbaugh: Myopia,“ events. www.826michigan.org Through Oct. 8 5:10 p.m. at the Michigan Theater, “Ray Johnson: e Bob Boxes” at Ann Arbor. e Penny Stamps Oct. 7-9 the College for Creative Studies virtuoso Mark Morris’ lyrical speaker series presents a conversation e Detroit Symphony Orchestra Valade Family Gallery is the largest choreography tells the tale of an Oct. 22 between the eclectic cult musician kicks o a year of George Gershwin local show of early pop artist Neo ancient Persian love. ums.org/ “Illuminate: e Annual Science and visual artist Mark Mothersbaugh with his iconic “Rhapsody in Blue,” Dada, in uencer and Detroiter since performance/layla-and-majnun Soiree,” 6-11 p.m. A family-friendly — lead singer of 1980s band Devo, featuring pianist Garrick Ohlsson, 1975. Although never a member, event at the Michigan Science Center Nov. 1-13 composer for 1990s Nickelodeon www.dso.org Johnson was also long associated with Oct. 14 celebrating the science of light. Enjoy cartoon series “Rugrats” and frequent the Fluxus movement, and this show “Detroit Performs Live” at the hands-on activities, demonstrations, e nine-time Tony Award- collaborator on Wes Anderson lms Oct. 7 is presented in honor of longtime art Fillmore Detroit, 8 p.m. When Detroit performances, food, drinks and more. winning musical “e Book of such as “Rushmore” — and Adam “Finlandia,” 8 p.m. Macomb collector Gilbert B. Silverman. www. Public Television debuted its live www.mi-sci.org/event/illuminate Mormon” is coming to the Fisher Lerner, director at the Museum of Symphony Orchestra’s 32nd annual collegeforcreativestudies.edu/ performance of Detroit talent last fall, Theatre as part of the Broadway in Contemporary Art Denver and concert of ethnic music is a salute to community-outreach-and-engage- a new tradition was born. Alexander Oct. 30 Detroit series. www. curator of Mothersbaugh’s current Finland, a country with a proud ment/exhibitions-public-programs/ Zonjic is back as host, with ornetta The Ark’s fall fundraiser, featuring broadwayindetroit.com/shows/ museum retrospective. www.stamps. history that is re ected in its art and valade-family-gallery Davis, Laith Al-Saadi and WDIV’s e Milk Carton Kids. Ann Arbor’s the-book-of-mormon umich.edu/stamps music. e Finnish American Singers Devin Scillian, just a few of the intimate concert venue boasts more of Michigan and the Macomb Through Oct. 14 Detroit-bred talent taking the stage. than 300 shows a year, with each of Nov. 6 Sept. 29 Symphony Orchestra will perform “Infolding/Unfolding.” De- www.detroitperforms.org/live the 400 seats no farther than 50 feet “Concerto for Violin and Rock Detroit Symphony Orchestra’s “A works by Jean Sibelius. His music is troit-based ber artist and CCS from the stage. Show your support for Band” with R.E.M.’s Mike Mills at Professor Emeritus Susan Aaron-Tay- Opening Oct. 14 this venue that showcases the best in Music Hall Center for the Performing lor’s solo exhibition at the Birming- Ed Clark retrospective at the folk, rock, indie and blues music from Arts, 7:30 p.m. Childhood friends, the Oct. 1: DiChiera gets center stage treatment ham Bloom‘eld Art Center delves into N’Namdi Center for Contemporary Art local and national performers at their violinist Robert McDue and R.E.M. the metaphysical, with her sculptural in Midtown Detroit. Noted gallerist 20th annual fall fundraiser. www. founding member Mills collaborate DiChiera Legacy Ball at the Detroit Opera House, animals evoking the earth through and collector George N’Namdi was an theark.org/shows-events/ on a new composition that transcends 6:30 p.m. e annual ball this fall will honor David her use of natural elements. www. early proponent of 90-year-old events-workshops/fall-fundraiser the lines between classical and DiChiera (left), founder and artistic director of the bbartcenter.org abstract artist Ed Clark, whose contemporary rock music. www. Michigan Opera eatre, who is slated to retire at the daughter Melanca Clark recently took Opening Nov. 4 musichall.org/events/Concerto-for- end of the 2016-17 season. To celebrate DiChiera’s Oct. 13-15 the helm of the Hudson-Webber “Art for the Holidays” at the Detroit Violin-and-Rock-Band many accomplishments, Michigan Opera eatre will Layla and Majnun, Mark Morris Foundation. www.nnamdicenter.org Artists Market. After a call to local hold its annual black-tie ball in an Italian-style Dance Group: “e Silk Road artists was extended earlier this year, Nov. 10-13 celebration, with cocktails, dinner, dancing and music Ensemble,” co-presented by the Oct. 15-23 handmade jewelry, ornaments, As if Shakespeare’s tragic love story by Ben Sharkey and the Big Band. A highlight of the University Musical Society and “Carmen,” Georges Bizet’s classic scarves and other treasures will ll “Roméo et Juliette” wasn’t lled with evening is a performance by Canada’s Royal Winnipeg Michigan Opera eatre at the Power opera about a gypsy and the rivals for every nook and cranny as this enough emotion, it is now imbued Ballet, the longest continuously operating ballet company in North Center. Premiering just a few weeks her aection, is coming to the Detroit Midtown gallery transforms into an with the additional passion of opera, America. www.michiganopera.org/opera/dichiera-legacy-ball prior, Michigan audiences are in for a Opera House. www. michiganopera. art-centric shopping hub. detroi- as University Opera eatre and the visual and musical treat as dance org/opera/carmen. tartistsmarket.org/events/index/ University Symphony Orchestra tell CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 13 SPECIAL REPORT: ARTS & CULTURE ‘Carmen’ and concertos: Guide to fall arts in metro Detroit

‘Bitter|Sweet’ at DIA Hilty is a theater favorite, having Berlin Philharmonic at University Musical Society appeared on Broadway in “Wicked,” “Noises O” and “9 to 5: e Musical,” as well as the Broadway-inspired TV show “Smash.” www.cabaret313.org/ shows/megan-hilty-nov-26-2016

Nov. 26-27 Music of Journey at Orchestra Hall. e Detroit Symphony Orchestra team that presented this summer’s Music of David Bowie is at it again, this time with the songs all south Detroiters know and love. e DSO intermingled with a new commission will be backed by a full rock band for that shows the future of dance, “23: this event. www.dso.org/ShowEvents Deconstructing Mozart,” by Koresh View.aspx?id=3013&prod=3011 and multimedia artist DJ Spooky. http://theberman.org/event/ Dec. 3 koresh Noel Night, 5-10 p.m. More than 50,000 people are expected to Nov. 19 descend upon the more than 80 e Chamber Music Society of cultural institutions, galleries, stores, Detroit presents Alexander Ghindin restaurants and bars during on piano in this Signature Series Midtown’s 44th annual Noel Night. concert that will feature a pre-concert More than 200 performances, horse ‘I See Me’ at Charles H. talk on Mussorgsky’s “Pictures at an carriage rides, a beer tent by the craft Wright Museum Nov. 12-13: Ken Fischer wraps up coup-ˆlled career Exhibition” and Viktor Hartmann’s beer store 8 Degrees Plato and ice drawings and watercolors that sculpture challenge are some of the e Berlin Philharmonic sets up residency with University Musical inspired the Russian composer’s evening’s oerings. www.noelnight. Society this season during music director and conductor Simon Rattle’s last showcase piano composition. At the org U.S. tour — and Ann Arbor is one of only six American cities the orchestra Seligman Performing Arts Center, 8 will visit. www.ums.org/performance/berlin-philharmonic p.m. www.chambermusicdetroit.org Dec. 9 e pair of concerts is also a cap to the career of Ken Fischer (below), “Karim Nagi: Detour Guide” who shaped UMS in Ann Arbor to be a major arts powerhouse. After 30 Opening Nov. 19 (multimedia storytelling), part of years, Fischer will retire as UMS president on June 30, 2017. His career “ e Truth Is I Hear You” at Global First Fridays at the Arab included such coups as luring to Ann Arbor Leonard Bernstein on his nal Cranbrook Art Museum. Did you American National Museum, 8 p.m. tour with the Vienna Philharmonic in 1988 and creating a decade-long speak your truth this summer when Nagi uses Egyptian percussion, partnership with the Royal Shakespeare Co. He also attracted global e Truth Booth popped up through- multimedia projections and his own programming that appealed to the Arab-American community in metro out metro Detroit and Flint? e words as he takes his audience on a Detroit and brought Philip Glass and two other co-creators of the opera culmination of that interactive project tour through the modern Arab Einstein on the Beach to Ann Arbor to stage the rst production in 20 years. is a video exhibition expected to diaspora. www.arabamerican In 2014, UMS was awarded the National Medal of Arts from President invoke a conversation. www. museum.org/gf-fall-2016 Obama, the highest award given to artists and art patrons by the U.S. cranbrookartmuseum.org government. Dec. 9 Opening Nov. 20 Eisenhower Dance presents its Oct. 22 “Bitter|Sweet: Coee, Tea & annual “December Dances” program “Illuminate: e Annual Science Chocolate” at the Detroit Institute of at the Seligman Performing Arts Soiree,” 6-11 p.m. A family-friendly Arts. Beverages may not seem like an Center in Beverly Hills, which will event at the obvious choice for an art museum include premieres from Princess Michigan Science Center Nov. 1-13 celebrating the science of light. Enjoy exhibition, but these hot drinks, Grace Choreography Award winner hands-on activities, demonstrations, e nine-time Tony Award- suddenly en vogue in 16th-century Joshua Manculich, as well as Artistic performances, food, drinks and more. winning musical “ e Book of Europe, created inspiration for Director Laurie Eisenhower. www. www.mi-sci.org/event/illuminate Mormon” is coming to the Fisher metalworkers and porcelain detroitperforms.org/2014/10/ Theatre as part of the Broadway in designers, who created custom december-dances-eisenhower- Oct. 30 Detroit series. www. vessels used to serve. ese objects dance-ensemble The Ark’s fall fundraiser, featuring broadwayindetroit.com/shows/ contribute greatly to the decorative e Milk Carton Kids. Ann Arbor’s the-book-of-mormon arts in the DIA’s pre-1850 collection, Dec. 10 intimate concert venue boasts more and the exhibition engages all ve “Too Hot to Handel 15th Anniver- than 300 shows a year, with each of Nov. 6 senses for an interactive visitor experi- sary,” presented by Rackham Choir at the 400 seats no farther than 50 feet “Concerto for Violin and Rock ence. www.dia.org/calendar/ the Detroit Opera House, 7:30 p.m. It’s from the stage. Show your support for Band” with R.E.M.’s Mike Mills at the story of the Montagues and Potter” presented by the Ann Arbor exhibition.aspx?id=5809&iid= hard to believe it’s been 15 holiday this venue that showcases the best in Music Hall Center for the Performing Capulets. Music by Charles Gounod, Symphony Orchestra at the Michigan seasons of this now-classic Detroit folk, rock, indie and blues music from Arts, 7:30 p.m. Childhood friends, the in French with English subtitles at the Theater as they reect fondly on their Nov. 25-27 retelling of Handel’s “Messiah,” local and national performers at their violinist Robert McDue and R.E.M. Power Center. www.music.umich. days at Hogwarts and on the While we’ve yet to discover life on reinterpreted through gospel, 20th annual fall fundraiser. www. founding member Mills collaborate edu/performances_events/produc- Quidditch eld while sipping another planet, that doesn’t stop Motown, jazz, blues, swing and theark.org/shows-events/ on a new composition that transcends tions/2016-2017/r-et-j.htm butterbeer. www.a2so.com/events/ humans’ innite fascination with classical music and more than 80 events-workshops/fall-fundraiser the lines between classical and music-harry-potter-muggle- outer space. Join the Ann Arbor musicians. www.rackhamchoir.org contemporary rock music. www. Nov. 11-Dec. 23 cocktail-hour Hands-On Museum for a weekend Opening Nov. 4 musichall.org/events/Concerto-for- It’s not the holiday season without devoted to galaxies far, far away with Through Dec. 30 “Art for the Holidays” at the Detroit Violin-and-Rock-Band a visit from dear ol’ Scrooge, and Nov. 16 “ScienceFest: Space Odyssey.” www. “Holocaust by Bullets,” the current Artists Market. After a call to local Meadow Brook Theatre makes sure “Classic Koresh: 25th Anniversary” aahom.org exhibit at the Holocaust Memorial artists was extended earlier this year, Nov. 10-13 you’ll have a chance to see “A at the Berman Center for the Center, Farmington Hills, tells the handmade jewelry, ornaments, As if Shakespeare’s tragic love story Christmas Carol” this year. www. Performing Arts, West Bloomeld Nov. 26 lesser-told tale of the more than scarves and other treasures will ll “Roméo et Juliette” wasn’t lled with mbtheatre.com/home Township, 7:30 pm. e international “An Evening With Megan Hilty,” 2 million Jews who perished in the every nook and cranny as this enough emotion, it is now imbued Koresh Dance Co. presents highlights Cabaret 313 presents a special Soviet Union during the Holocaust, so Midtown gallery transforms into an with the additional passion of opera, Nov. 12 from more than 60 works from its anksgiving weekend concert at 8 that we “never forget.” art-centric shopping hub. detroi- as University Opera eatre and the Muggles and wizards alike will quarter-century of performances p.m. at e Music Box at the Marjorie www.holocaustcenter.org tartistsmarket.org/events/index/ University Symphony Orchestra tell appreciate the “ e Music of Harry from Artistic Director Ronen Koresh, S. and Max M. Fisher Music Center. 14 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 SPECIAL REPORT: ARTS & CULTURE How to boost Detroit’s creative economy? First, take inventory Report: Promoting Detroit's design legacy arts and cultural funding through the she said. “And auto industry technolo- Brainstorming on Michigan Council for the Arts and Cul- gy is just as important as design." and arts education for children are key Detroit design ture rose signicantly this year — to Researchers at KerrSmith Design Part of launching Detroit’s UNESCO $10.5 million — and will again next found Flint’s creative leaders to be “de- By Marti Benedetti e 156-page report, released in designation is the rst-ever Detroit year due to Gov. Rick Snyder, the termined to support and promote the [email protected] March, broke down how arts and cul- Design Summit Sept. 22-23, which is Michigan Legislature, the support of creative industry. ere was an entre- Michigan’s kids aren’t getting ture are faring in Detroit, Ann Arbor, part of the sixth annual Detroit statewide arts advocates and the eco- preneurial spirit there and in Detroit,” enough arts education, and the state Flint and Grand Rapids. It reported Design Festival. Read more at nomic data from the report, which re- she added. isn’t capitalizing on Detroit’s consider- that Detroit is doing particularly well crainsdetroit.com/UNESCO. inforced the need. By comparison, per Olga Stella, executive director of able design legacy. in design, literary, publishing and former Gov. Jennifer Granholm's rec- DC3, said her organization is working at’s the conclusion of a compre- print and visual arts and crafts. It also ommendation in 2009, the budget was closely with Creative Many Michigan hensive report commissioned by a has a strong hand in advertising and Charles Stewart Mott Foundation, Pri- $2.5 million. to develop a Detroit version of the re- statewide creative economy group. lm, audiovisual and broadcasting, ma Civitas, and the Detroit Creative Helen Kerr, president of KerrSmith port that will dig deeper into employ- “Among our next steps is to focus on which is impressive given that the Corridor Center, or DC3. Design, said the report is useful for ment numbers, wages and number of the importance of arts education for state started cutting back on lm in- Michigan saw a 6 percent increase shaping strategy in the future. establishments. kids. CEOs are looking for skills, cre- centives in 2011 and dropped them by in employment in all industries from “(Participants) talked about where She found the report to be helpful ativity and innovation from (college 2015. 2011 to 2014, the report says. Howev- the system is broken and what was in giving her a look at the statewide graduates),” said Jennifer Goulet, CEO e report noted that Detroit re- er, state employment in the creative good,” she said. “... I feel we were a creative economy. "It helps us frame and executive director of Creative cently became the rst U.S. city desig- industries experienced only a 1.5 translator of the creative community what we are doing, and we appreciate Many Michigan, which commissioned nated as a “City of Design” by UNESCO, percent rise. U.S. creative industries in Michigan. It was a call to action.” that. ... We have assets here; we are just the report. “And the arts are not con- adding: “But despite notable im- employment as a percentage of U.S. She said the state’s furniture history not using them." sistently taught to kids.” provements and dedicated invest- total employment is nearly 3 percent — residential and oce interiors — George Jacobsen, senior program e 2016 Creative State Michigan ment from foundations and private compared with 2 percent for Michi- has a worldwide legacy, and that lega- ocer with the Kresge Foundation's report was researched and produced ventures, Detroit (remains behind) gan. cy “has been foundational to seed the Detroit program, said the report pro- by KerrSmith Design in Toronto, with other American cities of equivalent Design represents the largest cre- next generation of design. And it’s not vides a dashboard view of the state of additional research support from Data size in terms of the overall nancial ative industry in the state in terms of just Grand Rapids. Detroit has an in- the arts. Driven Detroit. It recommends “access and employment impact of creative employees and showed a signicant credible architectural history and cre- “It provides a good look at what our to high-quality, consistent, sequential industries.” upturn between 2011 and 2014. Film, ative education institutions, such as base level is,” he said. e next report and standards-based education in e report cost $260,000 and was audiovisual and broadcasting em- Cranbrook, the University of Michigan should reect the impact of “a new and through art, design, culture and funded by a $100,000 grant from the ploys the second largest group of cre- (and) the College for Creative Stud- mayoral administration, dierent creativity in schools at all levels.” e U.S. Economic Development Adminis- ative economy workers. Literary, pub- ies.” state government and more interest in eorts should be a high priority from tration and grants from the Kresge lishing and print showed the greatest Kerr touted the state’s emerging the creative economy.” preschool to grade 12 “in partnership Foundation, the Michigan Economic decline — 15.8 percent — in employ- creative technology sector, which is its Goulet said another creative indus- with the state’s arts and cultural insti- Development Corp., Masco Corp. ment. fastest-growing industry. “ e wages tries report will likely be published in tutions.” Foundation, the Ford Foundation, the Goulet pointed out that the state's are good and the impact is really big,” three years. FREE FOR ALL.

Admission to the DIA is free if you live in Wayne, Oakland or Macomb county!

5200 Woodward Ave. www.dia.org DBpageAD_DBpageAD.qxd 8/30/2016 3:12 PM Page 1 16 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 SPECIAL REPORT: ARTS & CULTURE How to sell tickets to millennials “We know social justice and And there's the tech phenomenon Joining in the Cultural groups — millennials have entertainment performance? try high-tech, action-oriented programs media of all kind literally at their n- Lindsey Pollack, a millennial work- speak to them, and that’s gertips on smartphones and tablets. place expert for The Hartford insur- interactive options “How do you get them to look up ance company in New York, said what exactly what we’re trying to from all the information in the appeals to millennials can also appeal By Leslie D. Green create.” world?”asks Linda Ramsay-Dether- to other audiences, but if you want to Special to Crain's Detroit Business age, development director for the Jew- attract millennials, think about partic- If the Holocaust Memorial Center Robin Axelrod, Holocaust Memorial Center ish Ensemble Theatre in West Bloom- ipatory events and unique experienc- can captivate 40,000 schoolchildren eld Township. “You have to get them es. “Experiences have currency,” she who think the horrifying events of the e turnout was surprising. “We gest motivating factors for participat- to cry and laugh, you have to give them said. late 1930s and ’40s are as ancient as didn’t know if 20 people would come ing in arts-related events. an emotional response.” Pop-up performances — where early Greece, certainly it can draw the or 30 people would come,” Axelrod According to an Aug. 30 NEA re- JET’s strategy is to shorten perfor- someone suddenly starts singing an interests of 19- to 35-year-olds. At least said. But “A couple of hundred young port, 76 million Americans, or 32 per- mances and take on contemporary is- aria in a public space — is one of David that was the thinking when the Farm- adults attended the event.” cent of the population, attended live sues that intimately relate to the cul- DiChiera’s favorite ways of reaching ington Hills nonpro t began reaching e museum has followed up with music, dance or theater in 2015 and 19 ture. millennials. “Sometimes people are out to millennials. similar events, including one dedicat- percent, or 45 million, attended an art Broadway in Detroit, which books not sure they want to go to the Opera “We know social justice and ac- ed to the socially and politically po- exhibit. Of those patrons, millennials touring shows for the Fisher Theatre House, they worry about dress, etc.,” tion-oriented programs speak to lemical topic of refugees that, Axelrod were 17 percent more likely than any stage, hopes to grab their attention the Michigan Opera Theatre founder them, and that’s exactly what we’re said, drew people who normally other age group to attend. with the edgy, gender-bending and artistic director said. “But when trying to create,” said Education Direc- would not step foot in the center. “Hedwig and the Angry Inch,” star- you do things in their own settings, tor Robin Axelrod. e idea is simple: Get them in the Driving engagement ring Neil Patrick Harris, a popular TV they say, ‘Hey, I love that singer.'” For the museum’s rst millenni- door for a topic they care about and But 18- to 24-year-olds attend fewer sitcom star who also won a Tony in Participation and experiences are al-targeted program in 2014, Pencils of then expose them to the broader ex- ne arts events — art museum exhib- the role on Broadway in 2014. is the reason millennials attend more art Promise founder Adam Braun exam- hibits and purpose. its and classical music, jazz, live the- past summer, Broadway in Detroit and music festivals than other cultural ined social entrepreneurship and so- at strategy falls in line with what ater, opera and ballet performances held a Tony Awards event at the Ma- events, Iyengar said. “Festivals have cial responsibility. Braun, a former Sunil Iyengar at the National Endow- — than they did 10 years ago, the NEA ple eater, with live coverage on the immediacy of a live experience rising star on Wall Street, wrote the ment for the Arts understands about found. Iyengar puts it like this: “e Facebook that garnered attention. plus interaction with the artist, mobili- book e Promise of a Pencil: How an young adults and the arts. e director strongest predictor of whether some- And Scott Myers, director of corpo- ty and open air. ere is a smorgas- Ordinary Person Can Create Ordinary of research and analysis for the NEA, one attends arts experiences as an rate sales and marketing for Broad- bord of options.” Change, the saga of his experience cre- Iyengar said 78 percent of 18- to adult is whether they had the experi- way in Detroit, is looking at what the- Already the Music Hall Center for ating a global nonpro t that built more 24-year-olds cite learning, socializa- ence as a child or had arts education in aters across the country are doing to the Performing Arts presents dance, than 360 schools around the world. tion and networking among the stron- school.” attract millennials. CONTINUED ON NEXT PAGE

 SEASON Celebrating the DiChiera Legacy

Please join us in honoring our visionary founder, David DiChiera, in his th and inal year as Artistic Director of Michigan Opera Theatre.

For more information visit michiganopera.org

David DiChiera Founder & Artistic Director CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 17

SPECIAL REPORT: ARTS & CULTURE

MUSEUM OF CONTEMPORARY ART DETROIT Visitors to the Museum of Contemporary Art Detroit take in an exhibition earlier this spring; a Pokémon Go promotion led to a 20 percent membership increase.

FROM PREVIOUS PAGE gaging millennials is with meet-and- semicircle while music plays, a digitally greets with music director Leonard mapped model of the Ford F-150 rises folk, plays, jazz and rock concerts. Yet Slatkin and backstage brews, where from the ground and robotic arms when thinking about how to attract they can mingle with musicians. show how parts and pieces are added younger patrons, the Detroit venue di- On Sept. 22, the DSO is presenting to the vehicle. versi ed further. “You have to create “Mysterium,” an experimental music “We use all of the social channels as the environment,” said Vince Paul, event where DSO musicians will per- well,” Mooradian said. For example, the president and artistic director of the form a variety of genres in three ven- museum used Snapchat to promote its Music Hall. ues at the Max to introduce younger well-attended Beatles exhibit this sum- He said trustees were horri ed patrons to more of what’s oered. e mer and has held Snapchat contests. when he suggested spending $1 mil- Dec. 14 “Home Alone with the DSO” Larisa Zane, senior communica- lion to open its 3Fifty Terrace night- event, where the lm will play on a gi- tion specialist for the Detroit Institute club on the roof of the Music Hall. “I ant screen while the Detroit Sympho- of Arts and a millennial, said allowing said, ‘21- to 35-year-olds are a demo- ny Orchestra plays the score, is a great photography in the DIA’s large-scale graphic, just like the Arab community. example of relatable programming, museum exhibitions, such as “30 If you want to engage them, you have Hoen said. Americans,” allows visitors to spread to speak their language.’ ey think “It’s something we all grew up with awareness via social media and en- about making money, hooking up, but you don’t realize how much phe- gage on a digital level. “Social media is partying and engaging socially.” nomenal music is in the score,” Hoen a way a lot of millennials communi- Paul hopes one day the Music Hall said. “ose are the kinds of experi- cate,” she said. programming and the nightclub, MUSIC HALL ences millennials need in order to Zane uses emojis to promote art at which boasts bottle service, beautiful Patrons at 3Fiy Terrace can enjoy bottle service — and a great skyline view. think the symphony is cool.” the museum on Twitter and used Ins- people and trendy carbon dioxide e DSO also created discount pro- tagram for its four-city Inside|Out proj- cryo jets, will work together. grams for younger generations. ose ect with the John S. and James L. “We can wait for them to hook up, hours to create a piece of art, which ing a young sta helps shape the 37 and younger can participate in Knight Foundation that included a have kids, go to college and then start goes up for sale. “It provides them an museum’s outlook and approach with 37/11, where they pay $37 a year and photo contest and InstaMeet event. “It enjoying our programming, or we can opportunity to take ownership and be immersive, participatory programs each of their tickets will cost only $11. was the rst Instagram meetup we engage them now. Because they come a part of the museum,” said Reming- such as workshops with musicians A sound card allows students to pay hosted. Our goal was to have about 50 to 3Fifty, they know where to park, ton, who falls in the millennial age and culinary walking tours. $25 a year and get in all shows for free. people come out. We had about 75 they know where the bathrooms are, group. Getting young people involved in people,” Zane said. High-tech features and where to nd the box oce," he e Charles H. Wright Museum of the Detroit Symphony Orchestra was a e museum also held a Pokémon said. And as they walk by posters pro- African American History in Detroit, mission for James Farber, chairman of Undeniably “cool” to many 18- to Go meetup with local college and high moting violin, ballet and rock band which attracts millennials through the DSO’s Governing Members Exec- 34-year-olds is technology. school students. “It allows us to stay performances on their way up to 3Fif- events like its annual African World utive Committee. He is also founder of The Henry Ford in Dearborn, which relevant,” Zane said. ty, "ere is no obstacle to buying tick- Festival and Black Women Rock con- Aclaimant, Bloom eld Township; has millennials on its board, spent MOCAD’s Pokémon promotion on ets to a show. ese are critical issues certs, has found this to be true. Muse- chairman and CEO of American Sta
- $70 million in 2003 upgrading Green- Instagram and Facebook requesting and they add up to sales.” um leadership met the four millenni- ing Assurance Co. and president of Ex- eld Village to appeal to both newer people to come out and make a dona- Getting millennials in the building als currently on its board when they ecutive Strategies Inc. and older generations, said President tion and receive a small gift resulted in isn’t a problem for the Museum of Con- were talking to them about the muse- “He said when he rst came to the Patricia Mooradian. Presenters now a nearly 20 percent increase in mem- temporary Art Detroit, either. Young um. “en we started to look at them DSO he was the youngest person there, use iPads to share more in-depth sto- bership that period because it was professionals often co-work and col- as possible board members and we and 20 years later he was still the ries of artifacts not on-site, and they shareable and timely, Remington said. laborate in Café 78, a full-service approached them to help us think youngest member there,” Christa have added a giant-screen experience “e more quickly we react to restaurant and bar open six days a things through,” said president and Hoen, 25, said with a laugh. She is co- to Maker Faire, an annual innovation what’s going on, the better (millenni- week, said MOCAD director of philan- CEO Juanita Moore, acknowledging chair of Next Gen, a DSO committee of festival at e Henry Ford, allowing at- als) want to be involved and have a thropy Emily Remington. the museum still doesn’t have enough more than a dozen 18- to 34-year-olds. tendees to talk with an astronaut at long-term relationship. Gen Ys and Still, MOCAD recognizes the need younger board members. Hoen is academic support manager for NASA’s Johnson Space Center. millennials have always had Google to create age-speci c programming, Nearly half of the 25 sta members Detroit Regional Dollars for Scholars. Attendance rose 32 percent after e and had things constantly at their n- like its Monster Drawing Rally. e ral- at the Arab American National Muse- Essentially, Hoen boiled it down to Henry Ford created a 4-D theater for gertips. We just have to make sure we ly gives 40 members of MOCAD’s 45 um in Dearborn are 18- to 34-year- the generation’s need for comfort and the Ford Rouge Factory Tour in 2015, have everything they want online and and younger New Wave group two olds. Director Devon Akmon said hav- relatability. Some ways the DSO is en- Mooradian said. e audience sits in a interactively.” DBpageAD_DBpageAD.qxd 9/1/2016 2:47 PM Page 1

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Take it forward at thehenryford.org CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 19 SPECIAL REPORT: ARTS & CULTURE High-dollar donors earn VIP perks By Leslie D. Green the perks become true VIP experienc- associates have the opportunity to go Special to Crain's Detroit Business es — including socializing with the to Miami Beach for Art Basel, with American Express is right: Mem- “right” people, receiving advice on art work from galleries in North America, bership has its privileges — whether acquisitions and other exclusive op- Latin America, Europe, Asia and Afri- with a charge card or in an elite associ- portunities. ca. ey are also invited to attend an ation. Here we break down some of the annual North American International “Blue card level” memberships perks of giving big dollars to a few area Auto Show preview before the black- tend to provide discounts on goods cultural institutions. While the organi- tie Charity Preview event. and services. Examples include: zations stress that they value all of their In addition to tiered DIA member- n Members of the Charles H. donors, the privileges prove that the ships, the museum also oers 12 auxil- Wright Museum of African American more you give, the more you get. iary memberships. Matt Mergener, History get free admission for a year (Note that donors pay their own president of the Friends of the Detroit and guest passes. travel expenses for trips.) Film Theatre auxiliary and an advertis- n Curators’ Circle members at ing sales representative for , Arab American Google Cranbrook Art Museum get the muse- said that members, depending on um publication and invitations to the National Museum their levels, get a certain number of Graduate Degree Exhibition and cu- Director Devon Akmon explained free screenings, free parking, dis- rator-guided tours of exhibitions. AANM is in the unique position of be- counts and rst chance to travel to the n A premium Michigan Science ing the only museum of its kind that Toronto Film Festival each September Center donor may enjoy not only free caters to patrons who more often give with curator Elliot Wilhelm. High-level admission but also free planetarium to their churches, mosques and relief LAURA RAISCH/MUSIC HALL CENTER FOR THE PERFORMING ARTS donors can attend dinners and lm shows, IMAX lms and special exhib- eorts back home as opposed to cul- Donors to the Music Hall Center for the Performing Arts are treated to a New York get-togethers, sometimes held at a its. tural institutions. So, AANM is trying excursion that includes a Broadway show and a stay at The London NYC hotel. board member’s home, Mergener n Cobblestone members of the De- to create a culture of philanthropy said. troit Historical Society and Museum through experiential activities, Akmon Museum of Immigration, is creating an ry members. Associate members, receive a commemorative cobble- said. e museum holds VIP recep- “immersive experience” in October those giving about $2,000 a year, can Detroit Symphony stone, invitations to exclusive events tions, house parties, cultural salons that includes a gala reception and a travel every couple of years, at their Orchestra and the opportunity to tour the Collec- with renowned Arab-Americans, such walking tour through Little Syria in own expense, to Maastricht in the DSO Governing Members, at tions Resource Center. as Charles Elachi, former NASA Jet lower Manhattan. Netherlands for a large exhibition of $2,500 or more, get access to the donor n Some Detroit Repertory Theatre Propulsion Laboratory director. For European paintings, drawings and lounge, assistance with ticket purchas- donors can get a free ticket for every supporters giving $5,000 or more, the Detroit Institute of Arts sculpture. While there, organizers ar- es, opening season events, patron ap- ticket they buy that season. museum, in conjunction with the “Lit- e DIA covers nearly every inter- range entry into private homes or of- preciation concerts, some rehearsals But at a “gold” or “platinum” level, tle Syria” exhibit at Ellis Island National est for its 28,000 members and auxilia- ces to see collections. In December, SEE DONORS, PAGE 21 DBpageAD_DBpageAD.qxd 9/2/2016 9:00 AM Page 1

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SPECIAL REPORT: ARTS & CULTURE “They can see private said the excursion, where travelers DONORS stay at the The London NYC hotel, in- The death of the FROM PAGE 19 collections ... stay at some of cludes a reception, a free Broadway local review the newest and neatest hotels show and tour and dinner at the leg- and Replay, a catalogue of DSO web- endary Sardi’s restaurant in the the- Daily newspapers have been casts. Cassie Brenske, director of ad- and build camaraderie with ater district. grappling with the rise of the vancement for individual giving, said fellow board members.” is year the group is scheduled to internet and decline of print most people are unaware of the DSO’s see Cirque du Soleil’s “Paramour.” advertising — and, therefore, Gabrilowitsch Society, named for the Emily Remington, MOCAD “Saturday is a wildcard,” Paul said. “We a business model that doesn’t DSO’s rst music director. For those cut through every museum.” work for supporting local arts donating $10,000 or more, members they feed and care for the animals. the Henry Ford also get VIP parking, Museum of and culture coverage. The receive invitations to a sit-down din- Shortly after traveling to Antarctica complimentary ride passes at Green- result has ner at a unique Detroit location. is with Kagan, Stephen Polk, longtime do- eld Village, priority access to events, Contemporary Art been a year, the DSO is planning a progressive nor and vice chairman of the board of behind-the-scenes tours for them and Detroit re-evaluating private dinner going from Two James directors, and his wife, Bobbi, donated 10 guests by a curator or Mooradian Philanthropy director Emily Rem- to Katoi to MotorCity Wine in Detroit’s $10 million to the Zoo's $30 million Polk and a special catered dinner on a Sa- ington said MOCAD tries to come up of priorities Corktown, with DSO musicians help- Penguin Conservation Center, which lute to America concert night. with unusual ideas and free opportu- that for the ing to provide music along the way. opened in April. nities for its members. Donors giving most part Major supporters also receive in- Michigan Opera Theatre $2,500 or higher receive VIP invita- kicked arts vites to meet-and-greets with guest The Henry Ford DiChiera Society members receive tions to art fairs around the world in- coverage to artists after concerts and trips. Brenske Since many of the museum’s major, a variety of bene ts from compli- cluding the Paris Photo fair and the the curb. said they hope to travel in 2017 to Ken- or potentially major, benefactors are mentary drinks and parking to priority Venice Biennale. Leslie Green: How did we tucky to see Teddy Abrams, the wun- not residing in Michigan, Patricia seating. “We also try to have private dinners Why coverage has get there derkind conductor of the Louisville Mooradian, president at e Henry At $5,000, donors are invited to ex- with artists who have shown at the mu- declined. and what’s who was assistant conduc- Ford, said they do special events with clusive meet-and-greets with guest seum or are in town visiting,” Reming- Orchestra next? tor at the DSO for two seasons. artifacts, like its Lotus-Ford Indy car, in artists and admission to the donor ton said, adding that Jens Homann, Pebble Beach, Calif., or the lounge. ose giving at $10,000 or MOCAD’s Susanne Feld Hilberry se- Read one editor’s take at The Detroit Zoo Goodwood Festival of Speed outside of London. more also receive a private invitation nior curator at large, provides art col- crainsdetroit.com/ Give $2,500 and members and up “We’ll host a special dinner or lunch to a special event with MOT President lection advice to high-level donors. In- artsculture. Leslie Green is a to four guests can take a zookeeper-led with donors from around the world, and CEO Wayne Brown. vitations for international trips to former arts and entertainment walking tour, or give $5,000 to tour and they can get up close and personal places like Brazil, Japan and Cuba are Music Hall Center for editor at The Detroit News and with a zoo curator and see your favor- with the car, the curator and with me. available for donor board members. works as a freelance writer and ite animal close up. At $10,000, donors It’s a way to showcase what we do and the Performing Arts “ey can see private collections of editor for Crain’s and others. can take a private tour and have break- our special collections for people who President’s Circle donors, those giv- people within those places, stay at fast or lunch with Executive Director might not be coming to Detroit any- ing $5,000 or more, are invited to travel some of the newest and neatest hotels and CEO Ron Kagan; and at $15,000, time soon,” she said. to New York with Music Hall President and build camaraderie with fellow they can shadow a sta member as Donors giving more than $10,000 to and Artistic Director Vince Paul. Paul board members,” Remington said.

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September Thu 11/17-Sun 11/20 February Sat 3/18 portrait of myself as my Steve Reich @ 80 Sun 9/11 Nora Chipaumire Thu 2/2 Music for 18 Musicians Falling Up and Getting Down Bruckner Orchester Linz eighth blackbird and Third Coast Percussion Jason Moran & The Bandwagon Dennis Russell Davies, conductor Fri 3/24 with Skateboard Masters December Angélique Kidjo, vocalist Martin Achrainer, baritone Mitsuko Uchida, piano Sat 12/3-Sun 12/4 Sun 9/18 Fri 2/3 HD Theater Broadcast Handel’s Messiah Sat 3/25-Sun 3/26 Estonian Philharmonic Beethoven String Quartet Shakespeare’s Richard III UMS Choral Union Chamber Choir Cycle Concerts 5 & 6 Starring Ralph Fiennes and Ann Arbor Symphony Orchestra Vanessa Redgrave Scott Hanoian, conductor /EWTEVW4YXRMĈĢ, music director Takács Quartet Wed 3/29 Thu 9/29-Sat 10/1 Sun 12/4 Sun 2/5 The TEAM’s RoosevElvis HD Theater Broadcast M-Prize Winner DakhaBrakha Shakespeare’s King Lear Calidore String Quartet Directed by Rachel Chavkin Thu 3/30-Sat 4/1 Starring Antony Sher Fri 2/10 Fri 9/30 [NOTE NEW DATE] The Encounter Kamasi Washington & Sat 12/10 Budapest Festival Orchestra Complicite/Simon McBurney Holiday Concert The Next Step Iván Fischer, conductor Directed and performed by Simon McBurney The King’s Singers Richard Goode, piano Christmas Songbook UMS Choral Union October Sat 2/18 April Beyond Sacred: Voices Sat 10/8-Sun 10/9 January of Muslim Identity Sat 4/1 Beethoven String Quartet Ping Chong + Company Michael Fabiano, tenor Cycle Concerts 1 & 2 Sat 1/7-Sun 1/8 Martin Katz, piano Takács Quartet Batsheva Dance Company Written by Ping Chong and Sara Zatz Ohad Naharin, artistic director Sun 2/19 Wed 4/12 Sun 10/9 A Far Cry with Roomful of Teeth HD Theater Broadcast Thu 1/12-Sat 1/14 Jelly and George Terence Rattigan’s Idiot-Syncrasy Aaron Diehl and Sat 4/15 The Deep Blue Sea Igor and Moreno Cécile McLorin Salvant Sanam Marvi Starring Helen McCrory Thu 1/19 Fri 4/21 Thu 10/13-Sat 10/15 Prague Philharmonia March King Sunny Adé Layla and Majnun Emmanuel Villaume, conductor Sat 4/22 Mark Morris Dance Group Sarah Chang, violin Sat 3/4 Jazz at Lincoln Center Orchestra Yo-Yo Ma, Edgar Meyer & The Silk Road Ensemble Fri 1/20 Chris Thile On Behalf of Nature with Wynton Marsalis Sun 10/16 Tue 4/25 Denis Matsuev, piano Meredith Monk & Thu 3/9-Sat 3/11 Vocal Ensemble The Beauty Queen of Leenane Opera in Concert Handel’s Ariodante Thu 10/20-Fri 10/21 Meredith Monk, music and direction Druid Starring Joyce DiDonato Dorrance Dance Garry Hynes, director Sat 1/21-Sun 1/22 The English Concert Michelle Dorrance, artistic director Harry Bicket, artistic director Beethoven String Quartet Sat 3/11 Cycle Concerts 3 & 4 Beethoven’s Takács Quartet November Missa Solemnis Sun 1/22 UMS Choral Union Sat 11/12-Sun 11/13 HD Theater Broadcast Ann Arbor Symphony Orchestra Scott Hanoian, conductor Berlin Philharmonic The Audience Simon Rattle, music director Thu 3/16 and conductor Sun 1/29 Snarky Puppy Inon Barnatan, piano Tue 11/15 Anthony McGill, clarinet Fri 3/17-Sat 3/18 A Venetian Coronation 1595 Alisa Weilerstein, cello Betroffenheit Gabrieli Kidd Pivot and Paul McCreesh, music director and conductor Electric Company Theatre Created by Crystal Pite and Wed 11/16 Jonathon Young ums.org Jake Shimabukuro, ukulele 734.764.2538 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 23 I SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS MARY KRAMER Publisher [email protected] Twitter: @mkramercrain It’s good that food economy has bugs in the system

ate a bug smoothie last month. On purpose. IAt the rst-ever Crain’s Food Summit in Detroit’s Eastern Market, we invited a handful of food entrepreneurs from around the state to “pitch” to potential investors. One of them was Detroit Ento, which of- fers “sustainable protein” — aka bugs — that can be mixed with a number of things, from sauces to smoothies. Plus, they are “locally sourced.” Yum! But consider it’s two times the protein power of beef. Actually, the smoothie was good.  e bugs added a bit of texture. And they ex- panded my view of how Michigan can add some badly needed manufacturing and processing jobs to, dare I say, our economic food chain. Farmers connected with restaurants that can buy their products; processors found potential retail customers or distrib- utors as well as potential vendors who sell everything from bottles to boxes.  e range was remarkable. Mary Wal- lace and Julie Tenbusch, retired nurses, were scouting for customers and distribu- tors for their frozen dough that transforms into tasty scones.  eir company, Wallace Scones, has a tag line: “Homemade, with a little help.” Kind of like refrigerated cookie dough. Elsewhere in this issue, we report on arts organizations trying to attract millennials.  e issue in the arts is the same as in food:  e quest is for authentic but “stellar” ex- periences, to use a word invoked at our summit by Jim Hiller, who sold his grocery Tabletop tours stores to Kroger and has hung up a shingle as a consultant. Zingerman’s o ers glimpse into crop growth, food prep in northern Michigan and beyond Another trend among consumers of all ages — people want to know where the By Amy Lane region. Part history, culture and learning, food is coming from, how it’s grown and Special to Crain's Detroit Business the idea is to promote a greater un- how it’s prepared. Many consumers are t’s not every day the opportunity derstanding and appreciation of a cutting back on processed food; pitch com- comes along to gather wild leeks destination and “a much better sense of petition winner Pop Daddy Popcorn Inc. with northern Michigan local-food the place,” said Amy Emberling , co- boasts its basic ingredients: red-kernel, managing partner of the retail and non-GMO corn grown near Ann Arbor and entrepreneur Timothy Young. And wholesale bakery popped in olive oil.  at’s a far cry from the Ilater go into the elds of a Leelanau Zingerman’s Bake- microwave popcorn that leaves a visible County farm to learn methods and crop house. residue inside the bag it’s popped in — and rotation and pick vegetables prepared And, she added, “just to have a really maybe inside you. under a chef who also will bone out a pig nice time.” Meanwhile, Detroit Ento may be riding as a prelude to dinner. Emberling is among Zingerman’s the curve that only now is taking hold in the But that’s a taste of what awaits a small employees who have led international U.S. Many parts of the world already include group of people who paid at least $1,500 tours, and she developed tours for crickets and other insects as a food source. apiece for a three-day excursion later this Hungary after visiting there to research Detroit Ento wants to create a facility to grow month into the Grand Traverse Bay area’s Hungarian baking. A tour next year in- the insects and create a protein powder for and ventures known as Zingerman’s food scene — a trip that’s the latest Community of Businesses, which operate cludes cooking lessons and dem- food we humans eat as well as in livestock onstrations from chefs and bakers and feed and even pharmaceuticals. iteration of international and Michigan under parent company Dancing We’re already planning for the 2017 food food tours run under a well-known Sandwich Enterprises Inc. visits to food and wine producers. summit. Not sure what Detroit Ento will be brand: Ann Arbor-based Zingerman’s. Whether destinations like Tuscany “We travel, we see incredible things that cooking up by then, but we hope to be Begun years ago to take people to the and Morocco or day trips by bike being are related to food, have a wonderful watching — and reporting on — it and the European sources of foods sold in planned into parts of Detroit’s food experience,” Emberling said. “We thought, other remarkable food companies across Zingerman’s Delicatessen, the food tours landscape, Zingerman’s Food Tours aim we have these connections, why don’t we our state. are a small but expanding business line to connect people with the sources, bring people to what we’re nding.” in the family of food-related companies stories, experiences and  avors of a Mary Kramer is publisher of Crain’s Detroit SEE TOURS, PAGE 24 Business. Catch her take on business news at 6:10 a.m. Mondays on the Paul W. Smith TEC PETAJA show on WJR AM 760 and in her blog at At one stop during Zingerman’s tours of the northern Michigan’s food scene, Cammie Buehler of www.crainsdetroit.com. Epicure Catering LLC hosts dinners at her event venue — a farm in Leelanau County. 24 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS more temperate parts of the country culinary … is certainly a passion for cal-foods-focused Epicure Catering “It’s a very small part of our business,” TOURS during Michigan’s cold months. some travelers, (and) they want that in- LLC. Managing Partner Cammie Bue- she said. “But it has very positive side ef- FROM PAGE 23 “We’re hard-core foodies,” said sider, behind-the-scene experience.” hler said guests will tour the property’s fects. I think it builds a lot of brand e international tours are about 10 Janene Centurione, who with Dan e tour’s agenda includes a stop grounds and learn the history of its barns awareness and loyalty. People go on oth- days for 15 or fewer people and are opened and owned Ann Arbor and Bir- with the founder of e Little Fleet food and structures, see a butchery demon- er trips, and they tend to buy things from priced from $5,500 to $6,850, depending mingham bakeries of the Great Harvest truck hub; brewery, winery and cidery stration by Epicure partner and chef An- other parts of our organization because on the destination and single or shared Bread Co. franchise before selling about meetings, tours and tastings; a sunset drew Schudlich, go into the elds leased of it.” room. Zingerman’s tour leaders join 10 years ago. sail and dinner aboard the educational and farmed by 9 Bean Rows LLC owner Centurione said future possibilities in with local guides who handle logistics As with other Zingerman’s food tours, tall ship Inland Seas, with captain and Nic Welty, and dine on locally sourced the Grand Traverse Bay area include and are paid for helping Zing- the Sept. 23-25 Grand Tra- others discussing history, culture, and cuisine, among activities. one-day tours and tours by bike — a erman’s take travelers into a verse Bay tour is designed to the water’s inuence on regional agri- Buehler said the structure of the Zing- concept also planned next spring in De- region. provide access to chefs, farm- culture; Traverse City’s downtown farm- erman’s tour provides intimacy and an troit. She is working with community Zingerman’s Michigan ers, food producers and oth- ers market; farm tours; and visits with educational opportunity that’s unique. members including Wheelhouse De- touring began with Traverse ers and convey to the 21 tour food producers including Boss Mouse “It’s not just tasting,” she said. “It’s the troit — a bicycle rental, tour, retail and City/Leelanau Peninsula-ar- participants — most of whom Cheese, an artisan cheese maker in whole thing. It’s the knowledge; it’s the service provider — on day trips for ea trips in 2013, 2014 and are from elsewhere in the Grand Traverse County’s Kingsley, and food; it’s the how, the why, the where … groups of possibly about 20 people to cy- 2015. Among those attending country — what it takes to Food for Thought Inc., the organic and they’re getting a full picture with this for- cle into destinations that include Cork- last year’s trip — and now produce food and drink or wild-harvested gourmet specialty foods mat.” town, Eastern Market and Hamtramck. leading tours — were Janene bring it to the table. company founded by Timothy Young, in Buehler said she hopes guests take “ e idea is to showcase all kind of Centurione, then-managing Janene “I want them to under- Benzie County’s Honor. away “just how interconnected the local levels of the Detroit food system in the director of the University of Centurione: stand more about the chal- Young, who will host a locally derived food system is in terms of all these rela- particular neighborhood that we go Michigan Center for Integra- “Hard-core” foodie lenges of running a small food brunch and take guests into tionships that are built and into,” including farmers, small-batch tive Research in Critical wants to spread business and being success- the woods to identify and dig fostered and encouraged” producers, farmers markets, restaurants Care, and husband Dan Cen- the gospel. ful, so that when they go to the leeks and then pickle them in and also gain skills, knowl- and others that use local products, said turione, a principal at BAKE!, farmers market or they go to a his kitchen, said he wants edge or ideas that they can Kelli Kavanaugh, owner and founder of Zingerman’s teaching bakery. farm-to-table chef or they drink a local people “to see another model apply where they live. Wheelhouse Detroit. beer, they understand more about what of how food can be made in Tour leader Centurione Kavanaugh said that with guided Passport to state tastes it took to do that,” Centurione said. an authentic and sustainable said Michigan tour hosts, who tours Wheelhouse currently oers, she e Centuriones saw tour partici- Michelle Grinnell, public relations manner.” are compensated for direct sees interest in Detroit’s history and cul- pants interested in greater interaction manager for Travel Michigan, said the “Eat good, healthy sustain- costs such as meals and sup- ture and food-related aspects, such as with the local food community, and that focus of Zingerman’s tour ts what culi- able food that doesn’t exploit plies, gain exposure that could Wheelhouse’s urban agriculture tour led to the more extensive format seen in nary tourists seek. other people or the environ- bring them future customers that visits several farms in the city. Timothy Young: the Grand Traverse Bay tour and a new “People really want that immersive ment — that’s my baseline.” Takes guests leek- and promotion. But the Zingerman’s tours “will be an relationship with Zingerman’s to create experience; it’s not that they just want to picking in woods. For Zingerman’s, food opportunity to focus in, close range, to and lead what are now called Great go to a restaurant and eat great food any- Up close and tours have generated revenue the food system,” Kavanaugh said. And, American Food Tours. more,” she said. personal of about $300,000 to $350,000 she said, “the food scene in Detroit is get- at banner includes future tours to And, Grinnell said, “how people are Another stop is Cherry Basket Farm annually in an enterprise that had about ting a lot of attention right now — right- Grand Traverse Bay, day trips into De- more and more traveling is based on LLC in Leelanau County’s Omena, an $60 million in revenue in the last scal fully so — so I think the timing to do this troit and possibilities being eyed for their interests and passions. Food and event-venue, farm and home of the lo- year, Emberling said. is great.”

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Building the electric transmission infrastructure that will power the future. www.itctransco.com CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 25 SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS Going local, Mich. gets into spirit of cra distilling By Seth Schwartz related story, this page.) Special to Crain’s Michigan Business Valentine reached out to the city of It has been eight years since the Ferndale regarding setting up a com- Michigan Legislature relaxed some Professor’s push for tasting rooms nets distillery mercial operation and was welcomed. regulations for distilleries. Today, with Valentine Distilling opened in 2007. e more than 35 craft distilleries, Michi- rough the eorts of Michigan State University Profes- working at a distillery post-graduation is appealing. moniker and label design of the spirits gan is third in the country by the num- sor Kris Berglund, Act 58 passed unanimously in the Michi- “e minor gives you a lot of hands-on experience,” pay homage to Detroit’s manufacturing ber of distilleries. gan House of Representatives in April 1998. It opened the Dunn said. “We learned wine production and fermenta- history. Valentine’s Liberator Gin, hand- Grand Traverse Distillery, Valentine door — and bottle — for distillers to have on-site tasting tion. We went through the entire process and made a red crafted from eight botanicals, was Distilling and Red Cedar Spirits are rooms. and white wine, and we got our own bottle at the end.” named after World War II’s B-24 Libera- three that have put Michigan on the e ripple eect of that legislation has reverberated across Her time at Red Cedar Spirits has added to her learning tor Bombers, constructed by Ford Motor map as a destination for spirit a cio- the state and into the classroom, where prospective college curve. Co. at its Willow Run plant. nados. Substantial use of local grains graduates often wonder how their major or minor trans- Beyond teaching students, Berglund has been a trou- Valentine’s bourbon whiskey is and other farm products also has lates to the job market. ble-shooter for those seeking his counsel on the art of dis- branded as Mayor Pingree, who was spurred the local economy. At MSU, Chemical Engineering 483, Brewing and Dis- tillation. When wineries started distilling brandy in 1997, Detroit’s mayor from 1889 to 1897. e Growing up on a farm in Pincon- tilled Beverage Technology began with a class of 25. To- he helped several. Since 2008, he has advised over a dozen 4-year-old bourbon is in a red label; ning near Michigan’s umb, Kent Ra- day, Berglund, a distinguished professor of food science distillery startups. the 8- to 10-year-old is in a black label. bish relished taking an idea and as- and chemical engineering, has 100 people at his lectures. en, in 2012, Berglund and his wife, Dianne Holman, A few barrels are released periodically sembling a consumable product by Two years ago, Michigan State’s food and beverage de- decided to establish their own place, Red Cedar Spirits. and are sold out within days. hand. While on vacation in 2000 with partment oered a minor in distilling for the rst time. A Converting the former city of East Lansing public works In the spring of 2015, Valentine his wife, Peg, in Bend, Ore., Rabish en- student is required to take ve classes to complete the mi- building took four years of restoration. e 45,000-square- moved production to a 15,000-square- joyed vodka from a local distillery. His nor. It combines the departments of chemical engineer- foot facility houses the Red Cedar Spirits distillery, which foot, three-story building with a 45-foot well-seasoned palate was pleased, ing, food science, chemistry, microbiology and biosyste- opened in 2015 and is one of the largest in the state. e ceiling to accommodate a 33-foot Chris- triggering a message to a percolating ms engineering. e curriculum is geared toward both 30-foot ceiling is able to accommodate the two 28-foot still tian Carl still, a former Packard body brain. hobbyists who take the class as an elective and the dozen columns. e tasting room, including a 20-seat bar, has a shop at 965 Wanda St. in Ferndale. “I thought, ‘Why can’t we do that or so who complete the minor annually and go into the family-friendly ambiance, with customers ranging from Ri no’s yield has received high right here?’ ” brewing business after graduation. the mid-20s to the 60s. praise from the industry. Valentine But as Rabish learned, making a pre- Olivia Dunn, a senior from Clarkston, is a chemical en- Red Cedar Spirits also is distributed in 300 stores in was voted Best American Gin Distill- mium craft spirit is a complex process. gineering major with a minor in beverage and science. Michigan; vodka, for example, is used at the Kellogg Hotel ery at the 2015 Berlin International While attending the American Distillery After three semester internships at Dow Chemical Co. (in and Convention Center at Michigan State’s campus. Spirits Competition and was awarded Association’s rst Midland, Massachusetts and California), the thought of Seth Schwartz gold medals for the Liberator Gin and meeting in 2002, Old Tom Gin. A 7-year aged bourbon Rabish went also was just released, part of a Valen- through a two- enth will open as part of a joint tasting ported. Why can’t we make world- mark in the industry. Having grown up tine’s Proprietors Select Series. week internship at room with wine maker Black Star class spirits?” on a farm in Leland, Valentine also un- Valentine’s distilling products can a distillery in Flag- Farms this fall in Ann Arbor. Sixty per- Following a four-year apprentice- derstood the importance of being locally be found in more than 3,000 locations sta, Ariz., and cent of Rabish’s sales come from tast- ship under the tutelage of Michigan sourced. He uses 90 percent Michigan throughout Michigan, Illinois, Ten- spoke with manu- ing rooms. State University Professor Kris Berglund products, from grains to T-shirts. (Ber- nessee, New York, Maryland, Dela- facturer Arnold In 2012, Grand Traverse Distillery in East Lansing, Valentine was armed glund also has his own line of products ware and Washington, D.C., as well as Holstein and the added markets in Japan, Sweden, Nor- with knowledge and eager to make a via Red Cedar Spirits, East Lansing. (See in Italy, France and Belgium. Kent Rabish: The American Distill- way and Germany, annually sending spirits moved him ery Institute fo- 50 cases of Old George Straight Rye to start distillery. rum. His informa- Whiskey — aged four years — and 50 tion-gathering cases of bourbon — aged three years. paid o. Rabish said he’ll have a second still Construction was completed on a by mid-2017 and be able to add 400 4,000-square-foot operation in Tra- barrels to age each year. International verse City in 2006. e Arnold Holstein markets will receive 100 barrels of rye TOP FLIGHT still from Germany was assembled, and bourbon whiskey each year. and the Grand Traverse Distillery “In the craft industry, we need to commenced producing and dissemi- educate the public on what we do,” nating spirits, earning the distinction said Rabish, whose son, Landis, 31, be- as the rst microdistillery in the state. came head distiller in 2012. BUSES... Everything is made in-house. “We have a large sign outside the Grand Traverse Distillery makes more distillery which says, ‘End Your De- than 15 spirits, including four vodkas, pendence on Foreign Alcohol.’ Cus- six whiskeys, gin and rum with Carib- tomers need to nd out we can distill a bean molasses. world-class vodka that’s better than SUPERHERO One thousand cases of the distill- the imports.” ery’s signature True North Vodka were e spillover eect with agriculture sent directly to a distributor and then and money into the economy is palpa- to 1,200 stores across the state. In 2007, ble. Rabish buys nearly 300 tons of SUPPORT. the distillery released 2,000 cases of grain every year from Send Bros. Farm cherry vodka. e avoring came from nine miles away. a cherry company in Leland, with an “ere’s never enough whiskey,” organic cocoa bean adding a hint of said Rabish, adding that Grand Tra- chocolate avor. e second year in verse Distillery has grown 30 percent business, the distillation of whiskey annually. “We try to produce as quadrupled. much as we can, but the aging pro- en, a November 2010 change in cess is slow. Our goal is to put up 200 Michigan Liquor Control Commission barrels a year. We’ll put a note on regulations — Act 213 — was another Facebook to let people know what’s indiantrails.com boon for business. Distilled products come out.” were allowed to be sold on-site. 800-292-3831 Quickly converting his 400-square- Goal to make the best foot oce, Rabish had 50 customers After a decade on Wall Street, Ri - coming through the door the next day. no Valentine noticed the frequency ree tasting rooms in Traverse of manufacturing leaving the United City and one each in Suttons Bay, Le- States. When ordering martinis in land and Frankenmuth bring in more New York City, he observed: “Every- than 5,000 customers annually. A sev- thing was mass produced and im- 26 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 WORLDWATCH WHERE MICHIGAN DOES BUSINESS: INDIA ith a nominal 2015 GDP of Autoliv Inc. solutions in business intelligence, big includes seating, workspace, storage, W$2.09 trillion, India is the world’s data, data engineering and advanced tables and accessories and services fourth-largest economy. Its English-educated Based: Auburn Hills analytics as well as managed services related to local planning specialists, labor force accounts for the country’s Operations: O ce, tech and Clients: Oshore services to visualization experts, strategic design growth as a major exporter of information engineering centers in Bangalore, U.S.-based clients in the retail, consultants, shared learning technology and business outsourc- Bengaluru, Chennai and Rudrapur; insurance and nancial industries programs, local account management ing services, according to the CIA manufacturing in Mysore, Manesar structure, project implementation, World Factbook. e country also Employees: 1,900 Dayco Products LLC warehousing and stock holding has a large agricultural workforce, Products: Airbags, seatbelts, programs, user ergonomics training although most of India’s econom- steering wheels Based: Troy programs, and warranty and service ic growth comes from services. Clients: Suzuki, Hyundai, Tata Operations: A manufacturing plant implementation India’s largest exports are precious Group, Mahindra & Mahindra, Nissan, in Manesar Clients: Adobe, Amazon, Apple, stones, machinery, vehicles, chemicals, Ford, General Motors, Toyota Employees: 150 Accenture, Sony, Reliance, Credit iron and steel, petroleum products, cereals, Products/Services: Torsional Suisse, Sales Force, Johnson & apparel and pharmaceutical products. Its Cooper-Standard vibration dampers, accessory belt Johnson, Blackstone, MicrosoŒ biggest export partners are the United States tensioners, timing belt tensioners and Automotive Inc. (15.2 percent), the United Arab Emirates (11.4 idlers and technical support International Automotive percent) and Hong Kong (4.6 percent). Based: Novi Customers: Suzuki, General India’s largest imports are chemicals, plastics, Operations: Facilties in Bawal, Motors, Ford, FCA, Tata Cummins, Components Group iron and steel, fertilizer, machinery, crude oil and Chennai, Ghaziabad, Manesar, Volvo Eicher, Renault Nissan, Based: Southeld precious stones. Its biggest import partners are China (15.4 percent), the Mumbai, Sanand and Pune Mahindra & Mahindra Operations: Two plants and a United Arab Emirates (5.5 percent), Saudi Arabia (5.4 percent) and Employees: 2,020 technical, engineering and sales Switzerland (5.3 percent). Products/Services: Systems for Domino’s Pizza Inc. center in Chakan, and two plants in Each World Watch features a dierent country. If you know of a Michigan uid transfer, fuel and break delivery, Manesar company that exports, manufactures abroad or has facilities abroad, email sealing and anti-vibration Based: Ann Arbor Employees: 700 Gary Piatek, senior editor, at [email protected]. Clients: Fiat Chrysler Automobiles, Operations: 1,062 stores in 224 Products: Components including Ford, General Motors, Mahindra & cities; a master franchise in New Delhi instrument panel and cockpit COMING UP: October: Saudi Arabia | November: Brazil Mahindra, Renault-Nissan Alliance, Employees: 24,500 assemblies, headliners and overhead Suzuki, Tata Motors, Toyota, Products/Services: Pizza and side systems, glove box assemblies, front Altair Engineering Inc. Volkswagen items customized to the Indian palate grilles, doors, door trim, oor high-performance computing and consoles, wheel liners, passenger car Based: Troy on-demand computing DataFactZ Dow Chemical Co. and heavy truck exterior trim and Operations: O ces in Bangalore, Clients: Tata Motors, Mahindra, components Pune, Chennai, Delhi and Hyderabad General Motors, John Deere, General Based: Northville Based: Midland Employees: 600 Electric, Hyundai, Fiat Chrysler Operations: Oshore services Operations: Business and Inteva Products LLC Products/Services: Proprietary Automobiles, Caterpillar, Airbus, facility in Gachibowli manufacturing centers in Mumbai, software and services, including United Technologies, Honeywell, Employees: 150 Chennai, Delhi, Daman and Based: Troy software for engineering simulation, Robert Bosch, Volvo, others Products/Services: Project turnkey application development centers in Operations: One manufacturing Govandi, Kalwa, Taloja and Powai facility in Pune and one technical cen- Employees: 900 ter in Bangalore Products/Services: Chemical Employees: 435 products and plastics for use in paints Products/Services: Latches, and coatings, building and construc- window regulators and motors,  &217(0325$5<$57 '(6,*1 tion, plastics and packaging, water engineering support for roofs, and health, food and pharmaceutical, closures, motors and electronics automotive, electronics, agro-sciences product lines, as well as local and and renewable energy applications global purchasing functions Clients: Hyundai, Volkswagen, Federal-Mogul Corp. Ford, Mahindra & Mahindra, Tata Group Based: Southeld Powertrain operations: Manufac- Link Engineering Co. 6HSWHPEHU([KLELWLRQLQWKH*DOOHU\ turing plants,in Bangalore, Patiala, Bhiwadi, Parwanoo and Pune, a tech Plymouth $GGLH/DQJIRUG$7LPHOHVV(OVHZKHUH Based: center in Bangalore, sales and a Operations: Sales and service corporate o ce various support headquarters in Chennai and Motorparts operations: One sales personnel stationed in Banga- manufacturing facility in Chennai, lore, Pune and Delhi four sales o ces and a corporate Employees: 15 o ce throughout India Products/Services: Adams Employees: 7,000 Technologies supports the sales and Products/Services: Pistons, piston service of Link’s precision, custom- rings, engine bearings, sealing and ized test systems for both component systems protection products, ignition and full-system testing for motorcycle, products and valve seats and guides, automotive, aerospace, rail and civil gaskets, brake products, spark plugs, engineering engine valves, liners and wipers ProQuest LLC 1HZ(',7,216SDFH Herman Miller Inc. Based: Ann Arbor &ROOHFWLEOHDQG$FFHVVLEOH$UW'HVLJQ Based: Zeeland Operations: An o ce in Delhi and Operations: A manufacturing home-based direct sales representa- facility and sales o ce in Bangalore tives in Chennai, Delhi, Bangalore and presence in 12 cities through a and Mumbai dealer network of 19 dealers across Employees: 12 6,021('(6286$*$//(5<DQG(',7,21 the country Products/Services: ProQuest &DVV&RUULGRU0LGWRZQ'HWURLW6LQFH Employees: 152 dissertations and theses ::LOOLV6W8QLWVDQG'HWURLW0,6,021('(6286$*$//(5<&20 Products/Services: Entire product Clients: Universities range of Herman Miller, which Natalie Broda CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 27

SPECIAL REPORT: SECOND STAGE

LARRY PEPLIN Pam Turkin shows o her fresh-baked cookies and coee cake. Turkin, co-founder of Just Baked Cupcakes LLC, now has an online business, Rise Baking LLC. The right way to grow Biz owners can learn hard lessons about scaling up, strategic planning

By Rachelle Damico “Growth has to be funded upfront, and the return comes you’ll need to have a bigger war chest before you start Special to Crain’s Detroit Business later.” that process.” bout half of new businesses with employees Haviland said that in the best-case scenario it would Pam Turkin, co-founder of Livonia-based gourmet survive past the ve-year mark, according to a take three to six months for companies to get a return on cupcake company Just Baked Cupcakes LLC, said strate- U.S. Small Business Administration report revenue when opening a new location, and an addition- gic planning was an issue for the company when she Abased on data. al three to six months to gain pro t. owned it. Bureau of Labor Statistics ere are numerous reasons why a new business can “at gap is the thing that can make it really hard for “e driving force for us was to be able to get to a cer- fail — including an unfocused mission, poor manage- companies to manage,” he said. tain size, but you have to be able to maintain that size,” ment skills or a lack of nancial planning. Business owners should treat growth and expansion Turkin said. “Sometimes more is just more, not better.” Scaling up is a tactic many business owners use to with just as much strategic planning as managing day- In this month’s Second Stage, Crain’s talks to Pam make their company successful, but it can lead to a com- to-day operations. Turkin for advice, tips and lessons learned on losing pany’s downfall if not done correctly. “You have to ensure the business is pro table on a ownership of Just Baked, and why she said the experi- “It’s usually more expensive and harder to grow than small scale before you scale it up,” Haviland said. “It’s ence has ultimately made her a better entrepreneur. people think it is,” said Dave Haviland, who runs Phima- better to think of it as a completely new animal — it’s tion Strategy Group, a consultancy based in Ann Arbor. going to take longer, it’s going to take more money, and Read Turkin’s story, Page 28 28 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

SPECIAL REPORT: SECOND STAGE

LARRY PEPLIN A new recipe A er fall of cupcake company, baking entrepreneur works to rise again

By Rachelle Damico need some time to  gure out what’s Special to Crain’s Detroit Business “It would have going on.” Pam Turkin, former owner of Livo- been interesting Ryan Goodman said it was not R&E nia-based gourmet retailer Just Baked Development’s decision alone, and Cupcakes LLC, was devastated to lose to see what would that he received an email from Todd the company she and her husband, have happened if Turkin saying it was time to close the Todd Turkin, founded. stores. “I lost my whole life overnight,” Tur- we had a little “It was just too much; he thought it kin said. more money and was time, so we agreed with him,” he Turkin started the business in 2008, said. baking cupcakes out of her home. patience behind Both Turkin and Goodman said Within seven years, the business grew u s .” Just Baked was undercapitalized, and to 17 locations in Michigan and three Pam Turkin it was growing so quickly the company in Ohio, o ering more than 40 gour- was always chasing capital. met cupcakes in  avors like Grumpy “It wasn’t my job to keep funding it; 20-GAME PLAN Cake and Red Velvet. opening  ve Ohio locations in mall ki- it needed to eventually support itself Just Baked grew rapidly. In 2009, the osks in lieu of stand-alone stores. But and just wasn’t,” Goodman said. “Un- company had 10 employees and only four of the  ve planned Ohio lo- fortunately, it wasn’t doing well — about $570,000 in annual revenue. cations opened, some running as sometimes in business you have to MEMBERSHIP Last year, the company had 90 em- short as six weeks before the doors just cut your losses and stop things.” ployees and $3 million in annual reve- shut. Turkin said Just Baked would have nue. “I think we would have done very bene ted from a more strategic busi- However, the company’s rapid well at the malls,” Turkin said. “It ness growth plan. Create memorable experiences for growth became too much to keep up would have been interesting to see “Grow slow,” Turkin said. “ ere your family, friends, and clients as a with. what would have happened if we had were a lot of people involved with us “Like anything that grows too fast, a little more money and patience be- telling us to move into directions that Pistons season ticket member. you just lose control of it,” Turkin said. hind us.” sometimes seemed sexy and great, “Once one domino went down, it was Turkin said she had been taking on and looking back on it, it should have a chain event.” too many responsibilities during the been 'slow and steady wins the race.’ ” Last year, the company closed all of expansion — including supervising Just Baked added R&E Devel- EXCLUSIVEE INSIDEI BENEFITB S & its stores, leaving only four franchise building contractors, running the opment as equity partner after its EVENTS AACCESS AMENITIESA locations. commissary kitchen in Livonia and former partner, Garden Fresh  e company then sold its assets — many times driving back and forth Gourmet, pulled out of the cup- including recipes, trademarks and from Michigan to Ohio delivering the cake business. Just Baked then rights to future franchise locations — products herself. sold a stake to R&E in 2013. to Roseville-based Tubby’s Sub Shops “It was exhausting, and I was Garden Fresh has planned to take Inc., which sells the cupcakes in Tub- stretched too thin,” Turkin said. “It was Just Baked into grocery stores, but Tur- by’s locations. such a huge undertaking; we really kin said the wholesale market didn’t “Anybody that’s an entrepreneur should have had a full sta .” have enough margin in it. and puts six to eight years into some- Overwhelmed, Turkin said, she “It wasn’t the market for us,” Turkin thing every minute of every day, and traveled to Florida to visit her mother said. “We were handcrafting baked then to have it gone the next day — it’s and clear her head. She left on a Sun- goods, so that probably was a bad just devastating,” Turkin said. day, and by the time she returned on idea.” Pam and Todd Turkin owned 50 the following Friday, Turkin said the Turkin and Goodman both said percent of the company along with in- investors had closed the Livonia com- they had planned to grow Just Baked PISTONS.COM/BUYNOW vestors Ryan and Eric Goodman of missary kitchen and told employees big enough to sell it. 248.377.8477 Royal Oak-based R&E Development they were being let go. “Sometimes you need to work on Co. LLC. “It was done before I could do any- the quality of the business and not the Last year, Just Baked planned to thing,” she said. “I think it was a knee- quantity — I think that’s where we move to a lower-cost retail strategy by jerk reaction to me saying to them I SEE RISE, PAGE 29 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 29 SPECIAL REPORT: SECOND STAGE avoid growing too fast, like Just Baked. an Grassadonia, an executive man- RISE “It’s going much slower,” Turkin agement team member for credit-card 4 tips to grow FROM PAGE 28 said. “I’m much more patient and de- processing device Square and the liberate with it.” co-founder of Square Cash, the com- missed,” Turkin said. “It would have Turkin said an online business ap- pany’s free peer-to-peer payment app. and expand been better to analyze the e ective- pealed to her because of low infra- Grassadonia o ered Turkin advice ness of the stores that were there rath- structure costs, rather than a need to on scaling as a business and how to er than grow it to a critical mass.” manage retails stores and a kitchen full form a growth plan. successfully After the Turkins lost ownership of of employees. Instead, she outsources “If you don’t have a growth plan, Just Baked, they agreed they would LARRY PEPLIN a lot of work. then you’re going to be in trouble,” Dave Haviland, founder of never start a business again, Pam Tur- Rise Baking LLC went live earlier this She also said she will likely work Turkin said. “What if something takes Ann Arbor- kin said. But try telling that to a serial year; it has about 110-120 ongoing with investors again, many of which o — how are you going to manage?” based consul- entrepreneur. subscribers. have expressed an interest in working Turkin learned some hard lessons, tancy Phima- e couple remained stagnant for with Rise. but she doesn’t look at it as a failure. tion Strategy about six months, until an email from e company sold 400 boxes within “We will probably need funding for e experience has made her a better Group, o ers a contact from New York-based Hello the rst six weeks of the website launch. Rise in order to grow at the pace we entrepreneur, she said. tips and advice Fresh USA, a recipe-in-a-box subscrip- Turkin said Rise is the rst to bring think we can grow,” Turkin said. “As devastating as the whole thing on scaling a tion company she met a couple of the baking box to the market. She plans to explore di erent fund- was, I needed to have that loss to know business. years earlier at a trade show, expressed “I realized as big as the subscription ing platforms and work with Silicon what I was good at and what I wasn’t, interest in a cross-promotion with Just box is, nobody is doing what I’m do- Valley investors, who are skilled at and to understand where I could have Baked. ing,” she said. growing online companies and are been better and what I could have 1. Have a protable at’s when Turkin decided to start Turkin teamed up with her mother, typically o ering seed money as op- done di erently,” Turkin said. “Now I an online subscription business of her Adele Rosen, who owns the company. posed to a traditional bank loan or line could look back and be proud of what model that you’re own — in baking. Turkin is the managing member. of credit. we did, what we’re doing, and hope replicating. “I needed to do something to prove “With everything going on (with “I need to work with someone that people still love the brand.” to myself that I could do it again,” she Just Baked), it was just easier to put ev- knows more than I do,” Turkin said. “If at’s why Turkin named her new “Make sure the model works said. erything in her name,” Turkin said. you’re going to be bringing in an in- company Rise — not just a play o in the current location,” Haviland Her monthly baking subscription “She’s the one that’s funding it and vestor, you need to bring someone in our rising — but for her to able to get said. “en, take the time to learn company, Rise Baking LLC, went live in who put in all the initial investment.” that’s going to help you strategically.” back up again. the market and learn what the March of this year and already has As interest grew, Turkin purposely Turkin reached out to her friends in “Cakes rise, bread rises, and I’m go- landscape is in that new environ- about 110-120 ongoing subscribers. pulled back advertising for Rise to Silicon Valley for advice, including Bri- ing to rise again,” she said. ment. ink about how you’d make it work in this new market and how you’re going to service that.”

2. Collect a war chest, especially if you’re not protable.

“Otherwise, you’re going to have to start diverting time, atten- tion and money from the core business,” Haviland said. “Growth costs more than you think it’s go- ing to.”

3. Have people who are experienced in the growth process itself.

“I’ve seen (business owners) going into a new market or loca- tion and say, ‘We’re going to take the person that’s always man- aged that, and we’re going to have them launch this new mar- k e t ,’ ” Haviland said. “e prob- lem with that is that they might be good at understanding how the business operates, but the launch and growth process requires a di erent set of skills than sustain- ing something that already ex- ists.”

4. Don’t bet the farm. “If you have a core business that’s generating prots, make sure you don’t take your eye o the ball of your core business,” Haviland said. “If you’re thinking about growing, gure out how to do it in a digestible amount to test the idea so that you’re not over-committing the company in this new area that might end up threatening the core business.” 30 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

SPECIAL REPORT: SECOND STAGE Company’s ‘passport’ keeps new hires at home longer Monday, October 17, 2016 By Rachelle Damico Zecman said. “Everyone we hire Special to Crain's Detroit Business Stage Two Strategies: now, we’re thinking of their second Problem to be solved: National National Food Group and third position.” Food Group is a wholesale food dis- As a recruiting tool, the company tributor for customers mainly in edu- Location: Novi uses Predictive Index, a software pro- cation, prisons and health care. gram that matches employee person- Description: National wholesale e company had recruiting and food distributor ality traits to the job that’s suited for Hosted by Governor Rick Snyder employee turnover issues for more them. than 10 years. President and CEO: Sean “For an accounting person you CEO Sean Zecman had issues Zecman want somebody who’s going to be dil- The Summit will feature: nding qualied candidates, and Founded: 1990 igent and more methodical, but if it’s employees working in the same posi- a salesperson or a buyer, you want • Internationally recognized speakers 95 tion for two to three years would Employees: somebody that’s a little more aggres- • Experts from across the country leave the company because they felt Revenue: $100 million in 2015 sive,” he said. stagnant and wanted to move up Zecman • Presentations addressing cybersecurity within the company. said these tac- issues impacting the business world “If we hired an AP clerk and they new talent and time spent screening tics have led spent the rest of their life as an AP and interviewing candidates. to higher re- • Breakout sessions on emerging trends, clerk, we were ne with that,” he said. Solution: National Food Group tention rates technology and best ppraacticesctice Zecman said the company also hired needed employees to feel the deci- and a lot of candidates out of college who sions they made within the company more-quali- weren’t focused on their career. had an impact. ed candi- “Our biggest issue as a midlevel New hires receive a company dates. company was how to compete passport that allows them to visit and As a result, against General Motors Co., Fiat learn about dierent departments, turnover rates “Everyone Foro mormore informationnfo matioon oor too reegisterg ste vvisitis t Chrysler and Ford Motor Co.,” he and are later tested on their experi- have de- said. ences. A mentor within the depart- creased from we hire wwwwwwww.michigan.gm ch gan.ggoovv/ccybersummityybbersummit Employee turnover cost the com- ment then stamps the passport. 18 percent in pany $30,000-$100,000 per employ- “It excites people about other de- 2011 to 9 per- now, we’re ee, which includes human resources partments and they learn about other cent in 2015. thinking costs, lost sales while searching for opportunities within the company,” Zecman of their credits retain- ing talent as a second reason the and third company has grown from position.” $30 million in Sean Zecman revenue in 2009 to about $100 million in 2015. Risks and considerations: Zecman considered that a software program to match employee personality traits would narrow the pool of talent, but he now prefers to take time hiring employees rather than rush through a hire. “We would much rather go three months without a hire in a depart- ment than force a hire, because the time to go through that whole pro- cess again is so exhausting. It’s better to just wait it out,” he said. Expert opinion: Dave Haviland, founder and CEO of consultancy Phi- mation Ventures Inc. in Ann Arbor, has been helping second stage busi- ness owners since 2004. He said growing companies tend not to think about career path talent development activities, which puts companies at risk for employee turn- over. e challenge is balancing what employees need in the short term with the path employees want to have in the long term. “Highlight more of the really great things other companies don’t have — like the ability to work on a bunch of dierent things — not just go to a train- The Leader in ing session or be exposed to it, but ac- tually get involved,” Haviland said. “Second stage companies are much Shareholder Rights better opportunities generally for mil- lennials, because they can have a big- ger role and be closer to decision- makers.” CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 31

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PELOTON The Peloton indoor exercise bike has a high-denition touch screen that can stream live exercise classes or on-demand classes. Bike maker Peloton to open KEEP YOUR store at Somerset Collection AD FRESH Troy store will be its rst location in Michigan WITH CRAIN’S BOOK OF LISTS By Adrienne Roberts all from the comfort of your own Special to Crain’s Detroit Business home,” Tim Shannehan, chief revenue YEAR-LONG SHELF LIFE ADDS VALUE TO YOUR Peloton, a New York City-based ocer of Peloton, said in a statement. company that makes indoor exercise “We’re also excited to join Somerset ADVERTISING EFFORTS bikes, will open a storefront at the Collection, which truly creates an ele- Somerset Collection in Troy — its rst vated experience for shoppers.” READERS REFER TO IT $//<($5 location in Michigan — this week. Peloton has retail locations in Chi- PRINT EDITION e store will open on the rst oor cago, Dallas, Philadelphia and Wash- • Two-thirds of our readers say YES, they refer back to the Book of Lists of Somerset North in a 1,800-square- ington, D.C., among other cities. Pelo- • Over half of our readers consider Book of Lists a “must read” foot space next to the Apple store. ton, founded in 2012, also has tness • 97% of readers refer back to the Book of Lists more than four times a year e space used to be home to the studios in Manhattan and Chicago. sponsored list downloads and Website section women’s clothing retailer Cache. e store is scheduled to open Sept. ASK ABOUT Cache led for Chapter 11 bankrupt- 15. sponsorship opportunities. cy in February 2015, and began clos- Somerset has seen a wave of na- ing all of its 153 retail locations in tional retailers open stores in the mall March 2015. this past year. In April, Danish foot- Source: Signet e Peloton indoor exercise bike wear and leather goods store Ecco Total Audience Survey – Keeps Aug. 2015 & July 2016 features a high-de nition touch opened a store, and in May Vineyard sh screen that can stream live cycling Vines and Los Angeles-based contem- fre classes as well as on-demand classes. porary clothing retailer Vince opened all year! e bike costs $1,995. in the Troy mall. “e Peloton bike enables you to e fast food restaurant Chick-l-A experience the entertainment and is set to open in the Somerset Collec- motivational power of group cycling, tion in mid-October. ADVERTISING INFORMATION: Matt Langan (313) 446-6032, ISSUE DATE: Dec. 26, 2016 [email protected] CLOSE DATE: Oct. 31, 2016 Huron Capital buys re detection rm Detroit-based Huron Capital Part- and Joe Del Pizzo, both of whom will ners LLC announced last week that its remain active in the business as WSA re detection and security services serves customers in its regional mar- platform company, Sciens Building ket of southern Florida. Solutions, has acquired Boca Raton, “We are excited to partner with Ter- DON’T FORGET TO REGISTER Fla.-based WSA Systems-Boca Inc. ry in this initiative, and we are thrilled Huron Capital formed Sciens, to add Brad and Joe to the team,” Hu- which is based in Detroit, in 2015 in ron partner Jim Mahoney said in a partnership with former Siemens ex- news release. “e re detection and The Consumerism ecutive Terry Heath to pursue a buy- security services market is highly frag- and-build strategy in the re detection mented, and we believe Sciens is and security services sector. is is its well-positioned to grow both organi- of Health Care rst acquisition. cally and through further acquisitions.”

Terms were not disclosed. Founded in 1999, Huron Capital TITLE SPONSOR WSA designs, installs and provides has raised more than $1.1 billion in Thursday, Nov. 17 Troy Marriott • 7:30 a.m.- 1 p.m. maintenance services for re detec- capital through four funds, has invest- tion and re suppression systems in ed in more than 120 companies and commercial, institutional and govern- annually is Michigan’s most active pri- ment facilities. e company has been vate equity company. owned and operated by Brad Golub Tom Henderson Register at crainsdetroit.com/events, or call (313) 446-0300 32 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

FRIDAY UPCOMING EVENTS PEOPLE: SEPT. 16 New Roles for Philanthropy in Entrepreneurs Forum: Where Metro Detroit: A Perspective From the SPOTLIGHT CALENDAR Preparation Meets Opportunity. Kresge Foundation. 8-9:30 a.m. Sept. Neubecker named MGM TUESDAY WEDNESDAY Noon-4 p.m. South eld Area 21. Troy Chamber of Commerce. SEPT. 13 SEPT. 14 Chamber of Commerce. Keynote Speaker: George Jacobsen, program Grand Detroit president Raising Capital and Building Capital The Big Four: Brogan, Lovio-George, speakers include DeAndre Carter, o cer, Kresge Foundation. Rehmann, MGM Resorts International has Source Relationships. 8:30-10 a.m. Muirhead, Rossman-McKinney. 11:30 author of Demand Greatness; and Ken Troy. Free for Troy Chamber named Michael Neubecker Automation Alley. Topics will include a.m.-1:30 p.m. Inforum. Featuring Johnson, inventor of Phase 10 card members; $10 for nonmembers. An president and developing a strategy to identify public relations and marketing gurus game and board game. additional $5 will be charged to those COO of MGM  nancing sources and requirements; who are also successful business Representatives from the Small registering the day of the event. Grand Detroit, establishing a marketing process; owners: Marcie Brogan of Brogan & Business Administration, One Stop Contact: Jaimi Brook, phone: (248) subject to negotiating  nancing commitments; Partners, Christina Lovio-George of Shop Business Center, Oakland 641-8151; email: theteam@ approval by understanding the underwriting Lovio George Communications and University Incubator, Michigan troychamber.com. gaming process; and interpreting  nancing Design, Georgella Muirhead of Van Women’s Foundation, South“ eld Area regulators. He agreements, shareholder agreements Dyke Horn Public Relations (formerly Chamber of Commerce and South Calendar guidelines. Visit will replace and any pre-payment terms. Berg Muirhead and Associates) and East Michigan Entrepreneurs crainsdetroit.com and click “Events” Steven Speakers: David Ritter, shareholder, Kelly Rossman-McKinney of Truscott Association will be available to near the top of the home page. Neubecker Zanella, strategic advisory group, and Claudio Rossman. Townsend Hotel, answer questions. Topics include Then, click “Submit Your Events” promoted to Calado, managing director, both of Birmingham. $45 Inforum members; funding, networking tips and help for from the drop-down menu that will president of core properties, a Doeren Mayhew. Automation Alley, $65 nonmembers; $25 students; $700 startups. Franklin Athletic Club, appear. Fill out the submission form, new position that will oversee Troy. $20 members; $40 table sponsor (table of 10-preferred South eld. $15 members; $20 then click “Submit event” at the operations at  ve of the nonmembers; $30 walk-in members; seating; company logo recognition in nonmembers. Contact: Tanya bottom of the page. company’s Las Vegas resorts. $50 walk-in nonmembers. Email: event presentation and event Markos-Vanno, phone: (248) Neubecker, 53, has been senior More Calendar items can be found [email protected]; phone: signage). Website: inforummichigan. 557-6661; email: tanya@ vice president and CFO of MGM at crainsdetroit.com/events. (800) 427-5100. org. south eldchamber.com. Grand Hotel & Casino in Las Vegas since 2008. Before that, he was executive director of  nance, assistant vice president of  nance and vice president of  nance and ADVERTISEMENT SECTION Art Van Furniture, Warren, announced a new CFO at MGM Grand Detroit. 4,000-square-foot PureSleep mattress showroom, DEALS & at 1295 Steward Road, Monroe. Website: WSU law dean to leave artvan.com. for Ross initative DETAILS St. Joseph Mercy Oakland, Pontiac, a part of St. Jocelyn Benson, Wayne State Joseph Mercy Health System, has opened the University’s law school dean since ACQUISITIONS & MERGERS Clarkston Imaging Center, 7210 N. Main St., Suite 2012, is stepping down to become Cooper-Standard Automotive Inc., Novi, a part of 211, Clarkston. Telephone: (248) 624-0974. CEO of the nonpro t Ross Cooper-Standard Holdings Inc., a global supplier Website: stjoesoakland.com. Initiative in Sports for Equality, of systems and components for the automotive founded by industry, acquired the automotive fuel and brake MOVES Wayne Law business of AMI Industries, Lewiston, and related SVS Vision, Mt. Clemens, has moved its Marine alumnus and LAW companies. Website: cooperstandard.com. City o ce from 6742 S. River Road to 36383 26 The Related Mile Road, Lenox Township. Telephone: (586) Cos. Metcom Inc., St. Clair Shores, a consumables 648-5990. Website: svsvision.com. Chairman Brian D. Wassom management and technology company, acquired Stephen Ross. Partner the inventory and order history of Forms Trac Cooper-Standard Automotive Inc., Novi, a Benson, 38, Enterprises, Troy. Website: metcom-inc.com. supplier of systems and components for the this month Warner Norcross & Judd automotive industry, moved its India also becomes LLP. Benson Interior Environments Inc., Novi, an Allsteel headquarters and technical center to Pune, a special Brian Wassom has joined dealer that o ers commercial business furniture Maharashtra from Sahibabad.  e 6,000-square- adviser on philanthropic Warner Norcross & Judd and consultation on workplace functionality, has foot facility employs 40 people and designs investments to Ross. She remains LLP as a partner practicing in the  rm’s acquired an Allsteel showroom in Denver. sealing components and fuel and brake delivery. director of the Levin Center at South eld and Macomb o€ ces. An Website: ieo ces.com. Website: cooperstandard.com. Wayne Law. experienced litigator, Wassom focuses his practice on complex commercial litigation Metaldyne Performance Group Inc., South eld, an Rockler Woodworking and Hardware has moved Hospital foundation and intellectual property litigation. In addition automotive supplier, acquired Brillion Iron Works, its retail space from 29918 Woodward Ave., Royal to copyright, trademark and product liability, Brillion, Wis., a business unit of Accuride Corp., Oak, to 26160 Ingersol Drive, Novi. Telephone: seeks new leader he has developed an expertise in disputes Evansville, Ind., a casting design and iron (248) 543-5110. Website: rockler.com.  e Children’s Hospital of including social and emerging media, publicity production company. Website: mpgdriven.com. Michigan Foundation is looking rights, defamation, unfair competition, First NEW SERVICES for a new president and CEO after Amendment matters, and false and CONTRACTS The Steel Market Development Institute, the resignation in July of Anthony deceptive advertising. Shelby Township implemented the Total South eld, a business unit of the American Iron Werner, who had served in those Response system for 911 call handling by and Steel Institute, released its 2016 steel posts since 2013. HOSPITALITY & PowerPhone Inc., Madison, Conn. It includes industry technology road map for automotive, Werner resigned for state-of-the-art software, processes and training. detailing challenges facing automotive and steel undisclosed reasons. Jodi Wong, TOURISM Websites: powerphone.com, shelbytwp.org. industries. It also identi es technical gaps in vice president of operations, is application of products, identi es potential interim president and CEO while Terry D’Esposito CKC Agency, Farmington Hills, a public relations projects, and provides information on materials, a local search is underway. Director, Sponsorships and media services  rm, has added two accounts: joining and forming related to advanced steels. and Education Elite Mr. Alan’s, Redford, a family-owned sneaker Website: autosteel.org. Ignite Social Media Detroit Metro and sports apparel retailer; and Frieje names Bounds president Convention & Visitors Auctioneers, Terre Haute, Ind., an auction and ProQuest LLC, Ann Arbor, has partnered with USC Bureau appraisal company. Website: ckcagency.com. Shoah Foundation Institute for Visual History and Marketing agency Ignite Social , Los Angeles, to distribute a streaming has promoted The Detroit Metro Convention & Visitors Education Media LLC Deidre version of the visual history archive of genocide from COO to president. Bureau has named Terry D’Esposito as its new EXPANSIONS Bounds , Troy, opened the Moceri survivors and witnesses. Website: proquest.com. She replaces company founder Director, Sponsorships and Education. The Beaumont Hospital Medical Intensive Care Unit, a 12-bed private , who is now CEO. position was created to help conventions and Jim Tobin room unit made possible by a gift from the Moceri  e agency, with o ces in meeting groups connect with metro Detroit’s family. Websites: beaumont.edu, moceri.com. Deals & Details guidelines. Email Birmingham and North Carolina, business and nonpro t community. [email protected]. Use any Deals & also promoted to D’Esposito’s main responsibilities will be to Misi McClelland , Saginaw, a motion control Details item as a model for your release, and look one of its  rst two senior vice create, maintain, plan and execute the overall Nexteer Automotive company, opened a 52,000-square-foot world for the appropriate category. Without complete president posts. McClelland had strategy of community relations, business headquarters housing 150 employees at 1272 information, your item will not run. Photos are been vice president of media and development, and fundraising functions. Doris Road, Auburn Hills. Telephone: (989) welcome, but we cannot guarantee they will be analytics. She and Bounds are Formerly D’Esposito served as Director of 757-5000. Website: nexteer.com. used. based in Michigan. Marketing at WJBK-FOX 2 Detroit. CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 33 September 12, 2016 CRAIN’S DETROIT BUSINESS Page 33

percent higher than the lowest sales year products, including automotive brake verted to equity when it emerged in De- ICAHN in 2009. pads. Federal-Mogul inherited a cember 2007. Months later, the investor FROM PAGE 1 Ford is predicting that the slide will known liability of a health crisis tied to acquired 50.1 million shares of common continue into next year, which could be a Turner & Newall’s factory in Armley, stock originally distributed to an asbes- is the most e ective way to get value win for Federal-Mogul’s aftermarket di- England, which closed in 1959. Feder- tos trust fund for $900 million, giving out of a complex portfolio.” vision. al law prohibited the use of asbestos in him a 75 percent stake in Federal-Mo- e question remains whether Federal-Mogul Motorparts, its after- brake pads for new cars in 1995 and for gul. He later upped that to 82 percent. Icahn will take either piece of the com- market division, represents 43 percent of aftermarket parts in 1997. Federal-Mogul has struggled to stay pany public again — as was planned its $7.4 billion in revenue. Asbestos dust contaminated the protable since leaving bankruptcy. last year. Icahn scrapped that plan in However, questions remain over town and led to an outbreak of asbes- Subtracting certain tax and impair- January, with company ocers point- what Icahn would do with its powertrain tos-related illnesses, including cancer. ment gains, Federal-Mogul has reported ing to market conditions as the culprit. division once the company goes private e link to the factory was established only two years of protability under It’s predicted that Icahn will verti- under his full control. e same looming more than a decade before Federal-Mo- Icahn. cally integrate the supplier’s aftermar- auto sales recession that would benet gul acquired the company. Federal-Mo- Icahn initiated signicant cost-cut- ket division with auto parts retail chain the aftermarket unit would plague Fed- gul carved out an additional $2.1 billion ting strategies in 2013, including the Pep Boys, which he acquired for eral-Mogul’s powertrain division. to cover the liability. Along with Feder- closing or downsizing of seven plants $1.03 billion in a bidding war in De- Wybo said Icahn is likely to ditch the al-Mogul’s other brake business, which and a divestiture. In June 2014, the com- cember. BLOOMBERG division in a re sale or a small public also used asbestos, the company was pany sold its connecting rod and cam- Activist investor plans to take Pep Boys’ 800 stores, paired with Carl Icahn o ering. tied to thousands of lawsuits from as shaft business to Addison, Ill.-based JD total control of by taking Icahn’s other parts retailer, the 278-lo- Federal-Mogul “ere’s no impressive revenue many as 500,000 claims. Norman Industries Inc. It also moved to it private, a move most likely part of an cation Auto Plus, would make up the growth, and he probably has a liquida- In 2001, the liabilities pushed the a downsized headquarters in the former exit strategy. fth-largest retail auto parts chain in tion or sale in mind for that business,” company into Chapter 11 bankruptcy, Blue Cross Blue Shield of Michigan the U.S. Even with Pep Boys’ stores, Wybo said. “If I’m him, I’d say ‘it’s time to where it remained for six years. headquarters complex in Southeld in a Auto Plus would be signicantly market parts.” get rid of this dog that I’ve owned for too “is is not something we wanted to cost-savings e ort. smaller than rivals Advance Auto Parts Ford Motor Co. chief economist long.’ ” do,” Frank Macher, then chairman and But the supplier hasn’t kept pace with Inc., Autozone Inc. and O’Reilly Auto- Bryan Bezold said car sales have hit a Following the 1998 acquisition of CEO of the company, told the Wall Street the rest of the industry, Wybo said. motive Inc. plateau after steadily rising following Cooper Industries, which manufac- Journal. “e decision was based on the “ere’s no impressive revenue “is looks like a backward vertical the 2008-09 recession, Automotive tured its existing aftermarket brands, fact that asbestos liabilities weren’t going growth in what’s been record years for integration play,” said Steve Wybo, se- News reported. e auto industry out- such as Anco wiper blades and Champi- to diminish. In fact, they were going to the auto industry,” Wybo said. “ey’ve nior managing director for Birming- performed the overall U.S. economy in on spark plugs, Federal-Mogul made a grow.” only grown around 15 percent (revenue) ham-based advisory rm Conway those years largely due to pent-up de- misstep that’s plagued its balance sheet Federal-Mogul held nearly $9 billion since the recession. at’s just not MacKenzie Inc. “Federal-Mogul has mand that has now played out. ever since. in liabilities, not all tied to the asbestos enough. I suspect in six months we’ll see strong (aftermarket) brands. If we’re In late July, Ford was the rst major at same year, Federal-Mogul ac- claims, at the time of the ling. a di erent owner for that business. Icahn going into a recession, or (auto) sales automaker to conrm the lofty sales quired U.K.-based Turner & Newall — Icahn, through aliates, purchased is probably fatigued from the thing.” slow down, we’re going to have aging gains achieved since 2010 were at an which at the time was one of largest $1.1 billion in Federal-Mogul bonds Dustin Walsh: (313) 446-6042 vehicles that are going to need after- end, even though they are still about 65 manufacturers of asbestos-related during its bankruptcy, which were con- Twitter: @dustinpwalsh

is preferred for the neighborhood. A Nancy Finegood, executive director in character-rich neighborhoods and son-Chalmers by the National Main RESTORE Sept. 17 event called Jazzin’ on the of the Michigan Historic Preservation commercial districts,” the study said. Street Center, part of a pilot program. FROM PAGE 3 River, an annual outdoor jazz festival Network in Lansing, said the neighbor- e study, released Aug. 30, is the re- “We hope to restore and rebuild this at A.B. Ford Park, will be a forum for hood is “an unusual treasure. (Trea- sult of a partnership between Detroit area without displacing people,” Se- store, construction of a new Caribbean community ideas and concerns. sures) are often sites. But we have been Future City, Preservation Green Lab idel said. “We’ll turn it around, and the restaurant in an old bank building and “And Josh and I will be meeting to working with the National Trust for and the National Trust. people there now will enjoy it. Je er- the beginnings of a new roof on the talk about next steps,” Seidel said. many years to draw their attention to Jef- Being named a National Treasure son-Chalmers will be a neighborhood historic Vanity Ballroom. Other key properties for preserva- ferson-Chalmers.” means the neighborhood will get help that benets new and current resi- Credit for progress goes primarily to tion on East Je erson are a vacant e network became a community from Preservation Green Lab and a dents. ey will all feel a part of this the long-term, ongoing e orts of Jef- bank building and an industrial partner with the Detroit Land Bank Au- transformation strategy for Je er- new community.” ferson East Inc., the neighborhood's building near Alter Road. “ose will thority and bought a house on Lake- business development organization. have a visual impact for the neighbor- wood Street to rehab. It plans to buy “e National Treasure will allow the hood,” Seidel added. more houses to refurbish. area to apply for small grants, but mostly Seidel does not anticipate large e designation is one of the rst un- JOB MARKET it means its gets the National Trust’s time grants for the area now. “e National der the National Trust’s new “re-urban- and talent regarding property reuse, his- Treasure designation provides na- ism” emphasis. Re-urbanism refers to RONT LACE toric preservation, national register re- tional visibility, but doesn’t guarantee promoting healthy and vibrant adaptive F P quirements, and help with redevelop- anything,” she said. reuse as a way to revitalize urban neigh- MISCELLANEOUS INDUSTRIAL SERVICES ment and reuse based on other National So far, the Vanity has received borhoods, explained National Trust Treasure projects,” Seidel said. $25,000 from the National Trust to spokesman Juvenio Guerra. C.W. JENNINGS SURVEY is is Michigan’s rst National Trea- conduct an environmental assess- In recent years, the National Trust’s INDUSTRIAL EXCHANGE sure, and just one of 70 in the United ment and a structural study. Elling emphasis has been on choosing sites Global Industrial Consulting ANALYZE States. said the building, though badly dete- that portray the country’s vast diversity. Construction • Acquisitions Je erson-Chalmers was chosen, Se- riorated, is structurally sound but Among the notable choices are Music Exporting • Financing idel said, because it has good bones, a needs a roof, expected to cost Row in Nashville, Tenn.; Fort Monroe MATCH (855) 707-1944 strong local partner in JEI and “is on the $500,000 to $1 million. He thinks the in Hampton, Va.; Bdote Fort Snelling tipping point of becoming better or building’s sentimentality with older in Fort Snelling, Minn.; and the A.G. worse.” residents (some of whom met their Gaston Motel in Birmingham, Ala. e trust has singled out the Vanity spouses there) could attract funding. National Treasures are nationally REAL Ballroom on East Je erson and the va- He said the Detroit City Council ap- signicant historic places. With the cant Guyton Elementary School on proved transfer of the Vanity to JEI in support of thousands of local preserva- CrainsDetroit.com/JobConnect | ESTATE neighboring Phillip Street as ripe for July. Part of the transfer conditions in- tionists and preservation professionals, restoration and reuse. ey may quali- cluded calling on local residents to help the trust is identifying endangered INDUSTRIAL PROPERTY fy for historic tax credits, and help with decide an appropriate use for the build- places and taking action to save them Call Us For Personalized SHELBY TWP. - 4,960 s.f. Indust. Flex Space for R&D, Hi-Tech, Lt. Assy. etc. All A/C. tax-credit nancing from the National ing. e goal is for the Art Deco-style “to make sure icons of the past remain Service: (313) 446-6068 Exc. Cond. Great Lease Rate. Possible Sale. Trust’s subsidiary, the National Trust ballroom to have a second life that cele- in the future.” Benson Assoc. 248-705-0835. CLOSING TIMES: Monday 3 p.m., Community Investment Corp. ese brates a storied past that includes per- Recently, the National Trust’s fth one week prior to publication date. COMMERCIAL PROPERTIES can be coupled with additional tax cred- formances by entertainers such as Duke and nal study, “Unlocking the Poten- Please call us for holiday closing times. its, Seidel said. Ellington, Cab Calloway and the Stoog- tial of Detroit’s Neighborhoods: e FAX: (313) 446-0347 FIXTURED e rst idea for the Guyton school es. Partnership for Building Reuse,” looked E-MAIL: cdbclassified @crain.com RESTAURANT reuse is some type of housing. “In Chica- Before getting the designation, Seidel at the barriers to building reuse and of- INTERNET: go, we are turning public schools into met extensively with Detroit partners fered solutions to help the city redevel- www.crainsdetroit.com/section/classifieds FOR LEASE housing. People think it’s a good idea to and stakeholders such as JEI, the city of op older buildings. Confidential Reply Boxes Available 3,200 Sq. Ft. make these schools community centers, Detroit, Detroit Future City, the Michi- “In Detroit, our analysis has shown PAYMENT: All classified ads must be but those don’t make money. Senior or gan Historic Preservation Network that older, smaller buildings provide prepaid. Checks, money order or Orchard Lake Road family housing or micro-apartments and Preservation Detroit starting in the foundation for entrepreneurs and Crain’s credit approval accepted. Jonathan Brateman Credit cards accepted. might be a better use,” she said. February 2015 to determine the poten- small businesses, that commercial cor- Properties, Inc. e next step, according to Seidel and tial and impact of Je erson-Chalmers ridors with a mix of old and new build- See (248) 477-5000 Josh Elling, executive director of JEI, is and other Detroit neighborhoods being ings are the city’s new business hubs, Crainsdetroit.com/Section/Classifieds [email protected] obtaining community feedback on what named a National Treasure. and that its best restaurants and bars are for more classified advertisements www.bratemanproperties.com 34 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

signed to consider all possible energy lawmakers who have led work on en- groups believe utilities won’t continue an, said the issue was pushed aside in BILLS sources in a utility’s electric portfolio ergy — including Nofs; Sen. John to pursue renewable power sources favor of more immediate priorities, FROM PAGE 3 as part of making the plans. Proos, R-St. Joseph; and Rep. Aric Nes- and eciency programs for customers such as the Flint water crisis and the e bills also would require Michi- bitt, R-Lawton — continue to discuss without a requirement to do so. Detroit schools restructuring. He physician. gan’s alternative electric suppliers to what a compromise version might Nofs said he is trying to get the leg- would like to talk with Cotter “about In the Republican-controlled demonstrate that they have the capac- look like. islation to a place where interested the viability of auto no-fault getting House, the entire chamber is up for ity to serve the state’s 10 percent of Why it could pass: Hours of testimo- groups could accept it, knowing it done before the end of the year,” she election in November. An election electric customers who buy power on ny and public hearings have occurred won’t satisfy everyone. said, “but he hasn’t had that conversa- year, coupled with the volatile presi- the retail market. Supporters of elec- over the legislative term, so there is tion yet.” dential race and its potential e ects on tric choice believe the provision would pressure to bring the bills in for a land- Other priorities remain Peter Kuhnmuench, executive di- down-ticket races, means lawmakers force some suppliers out of business, ing. Utilities have started to decommis- Reforming Michigan’s no-fault auto rector of the Insurance Institute of will head into the fall without knowing but proponents of the bill, including sion old coal-red power plants, and insurance law remains on the to-do list, Michigan and supportive of the bills, what the makeup of the House will be state Sen. Mike Nofs, R-Battle Creek, planning to build a new natural gas but reps for both Meekhof and Cotter said progress also stalled in part be- come January. A shift in party control say the measure is intended in part to plant takes years. Utility executives say consensus hasn’t yet been found. cause the insurance and health care could a ect lame-duck voting; several ensure reliability. have said the bills would ensure a ord- Two bills cleared the Senate in April industries have been on opposing political analysts have told Crain’s they Nofs worked this summer on sever- able electric rates and grid reliability. 2015, but haven’t seen action since. At sides of the legislation and unable to think Democrats will be able to pick al drafts of the Senate bills. He said he Plus, the Obama administration has issue is a proposal to replace the Mich- nd a compromise. up seats, though likely not a majority. is still working to tweak language con- released new rules to reduce carbon igan Catastrophic Claims Association, “With lame duck, there is an oppor- Among the questions swirling at cerning how alternative energy sup- emissions; Gov. Rick Snyder’s admin- which pays for crash victims’ care, tunity to change some minds,” he said, the end of this session, aside from pliers could demonstrate to state reg- istration has said the state wants to de- with a new fund that would pay all adding that he thinks moving the bills whether the remaining policy issues ulators that they have enough electric velop its own plan to comply, though claims above a new $545,000 benets this term will be “a dicult accom- will be resolved, is: Can the Legislature capacity owned or under contract to work is on hold while the Clean Power cap for auto insurers. plishment.” work in a bipartisan way to avoid the meet demand, and meeting with Plan is challenged in court. An updat- A separate plan backed by Detroit kind of gridlock that hindered prog- Democrats and some Republicans on ed energy law could bring more cer- Mayor Mike Duggan would reduce What’s not on the list ress on road funding last year or De- renewable energy standards. tainty to the state’s compliance e ort. Detroiters’ high insurance rates by Don’t expect to see a push to repeal troit Public Schools reform this year? He said he intends to brief Senate Why it might not: Energy is a com- limiting the amount of medical bene- Michigan’s 50-year-old prevailing Neither legislative solution is perfect, Republicans on new changes yet this plex issue, and the bills have lots of ts allowed to be paid. e “D-Insur- wage law this term. and opponents criticized both for not month, with hopes of being able to moving parts. Lawmakers are split on a ance” proposal hasn’t seen any action e House and Senate both consid- going far enough to x the problem. move the legislation to the House. number of key provisions, especially re- since it was reported out of committee er it a priority to repeal the law, which Energy policy might be the test. Nofs said he doesn’t think the House lated to renewable and eciency man- in June 2015. (See Q&A with Duggan, requires contractors to pay union- would take up the legislation until af- dates. Republicans oppose standards, Page 3.) scale wages and benets on public Energy a top priority ter the Nov. 8 election. while Democrats and environmental McCann, Meekhof’s spokeswom- projects. Yet momentum largely di- e House and Senate are oating “e worst-case scenario is we minished after a ballot drive zzled separate bills to update the state’s en- don’t do anything,” Nofs said. “e im- due to a lack of valid signatures from ergy law. Proposed legislation would petus is there to get something done.” registered Michigan voters. replace standards for the amount of e bills were voted out of commit- &DUHHU2SSRUWXQLW\ e Senate in 2015 sent bills to re- renewable energy and energy ecien- tee in May. peal prevailing wage to the House, cy that utilities must achieve, with “We’re hoping that we can reach an which opted to wait to see how the bal- goals and a long-term planning pro- agreement yet this fall,” said Gideon %XVLQHVV&RDFK lot drive would go. Snyder has said he cess called integrated resource plan- D’Assandro, a spokesman for House 6XFFHVVIXO0DUNHWLQJ6WUDWHJLVWORRNLQJWRIRUPD does not support repealing the law at a ning. is process, in theory, is de- Speaker Kevin Cotter. He added that time when he also is trying to drum up SDUWQHUVKLSZLWKDVPDOOEXVLQHVVFRDFKFRQVXOWDQW interest in skilled trades careers to deal ,¶YHGHYHORSHGDSURFHVVZKHUH,FDQILQGPRUHWKDQ with a looming labor shortage. IRU$1<VPDOOEXVLQHVVRZQHU«DQGGRVRLQOHVVWKDQPLQXWHV Proponents of repeal, mostly non- , YHEHHQRIIHULQJWKLVVHUYLFHWRVPDOOEXVLQHVVRZQHUVDQGLW V union contractors, say the law arti- cially inates wages and could save UHVXOWLQJLQPRUHEXVLQHVVWKDQ,FDQSRVVLEO\KDQGOH local governments money on devel- ,I\RX¶UHDQH[SHULHQFHGEXVLQHVVFRDFK opment projects. Supporters of the RU\RX¶UHLQWHUHVWHGLQEHFRPLQJRQHDQG existing law, including labor and some \RXKDYHDVROLGEXVLQHVVEDFNJURXQG, contractors, say they would have to cut ZRXOGOLNHWRVSHDNZLWK\RX budgets for training and apprentice- ships if it were repealed. :LOOLQJWRWUDLQWKH³5LJKW&DQGLGDWH´LI “It’s a good thing. It would be worth \RXKDYHZKDWLWWDNHV doing,” D’Assandro said. “at said, the governor has made it clear what )RUPRUHLQIRUPDWLRQ his position is on the issue, so getting those bills onto his desk is not neces- HPDLOFKXFN#.H\V%XVLQHVVFRP sarily something that we’re looking to RUFDOO do really quickly.” What’s likely to pass A four-bill package that would al- low driverless cars on Michigan roads for any reason, not just while being Staffi ng tested, cleared the Senate unanimous- ly last week. e bills largely are cham- HIRING: company with pioned as a way to position Michigan as a leading state for research and de- iiiiiiiii a $750,000 velopment of connected and autono- mous vehicles. line of credit e House’s communications and technology committee plans to take them up for the rst time Tuesday. Helping manufacturers, And now that the Senate passed legislation to require a license in order service providers, for medical marijuana growers, dis- pensaries and others in the industry to distributors and more with operate, the bills could be headed to Snyder’s desk after they return to the business cash fl ow solutions. House for a nal vote. ree of the ve bills passed the House by wide mar- gins in October 2015. Supporters say iA/R Financing the legislation is necessary to clarify iLines of Credit the 2008 voter-approved medical mar- ijuana statute. www.hitachibusinessfi nance.com Lindsay VanHulle: (517) 657-2204 (248) 658-1100 Twitter: @LindsayVanHulle CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 35

“New leadership always has LEADERS with custom FROM PAGE 1 the opportunity to take MAKE National Endowment for the Arts. their organizations into At the end of MOT’s 2016-17 season the next direction.” THE MOST Reprints, next May, founder and Artistic Direc- OF YOUR EDITORIAL tor David DiChiera will also retire, Mariam Noland, Community Foundation COVERAGE IN CRAIN’S E-prints leaving the door open for a successor for Southeast Michigan for that post. CONTACT: Krista Bora at [email protected] and more! DiChiera brought opera to Detroit, going against the tide when others Sometimes, all it takes is a perfor- Since then, the tempo of funders’ thought MOT should make its home mance in a surprising place to con- interest in inclusion has picked up. in the suburbs, Brown said. By bring- nect with new audiences. UMS regu- More recently, under Salort-Pons’ ing the historic Capitol eatre back to larly sells out its events held in leadership, the DIA worked with local life in 1996 as the Detroit Opera House, nontraditional spots like a skate park, artists Phillip Simpson and Tony Rave DiChiera laid the groundwork for beer garden, at a river or a church. to create a mural in Detroit’s northeast much of the revitalization taking place Working with other cultural groups Osborn neighborhood, funded by a in MOT’s Grand Circus Park backyard is another way to grow audiences. Knight Arts Challenge grant. On Sept. 105 today, Brown said. At UMS, Fischer forged relation- 12, the DIA was to welcome local art- A new artistic director can build on ships with groups such as the Arab ists, including Scott Hocking and Biba DiChiera’s success, nding opportuni- Community Center for Economic and Bell, for a daylong conference on the ties to strengthen MOT’s educational Social Services to help diversify his intersection of contemporary art and 145 programs and to further engage with group’s programming and audience. ritual, in partnership with the Cran- the community. Humility in approaching new audi- brook Educational Community and With the city’s rebound and in- ences and arts groups and reciprocity UM’s Penny W. Stamps School of Art & E N G I S N E E R 60 creased interest in its recovery, “this is in those relationships are important, Design. And local artists will be fea- E R S N a wonderful moment for us to explore he said. “ at’s kind of a new way of tured in the October photography ex-  I G S E a level of cooperation and working thinking for a lot of organizations.” hibition, “Detroit After Dark.” D

strategically ... with our fellow arts or- Up until now, broader collabora- “Advancing our relationships with



ganizations and community leaders ... tions among arts groups and other the local arts community is an import-  

that will serve us well going forward,” community organizations have been ant opportunity as I look ahead,” Sa- 

 

Brown said. “It’s a matter of not just few and far between. lort-Pons said in an email.   INSPIRING

 doing business as usual, but doing More than a dozen other cultural MOT is also hosting programs at 



 things that make sure MOT resonates groups and an equal number of local venues in the suburbs, tapping young   RESULTS  with the community we serve.” boutiques and restaurants hosted professionals for those performances,    e MOT is just one of several cul- complimentary programming, dishes with support from the William David-   tural institutions seizing leadership and drinks during the DIA’s Diego Ri- son Foundation. And it plans to ex-  changes as an opportunity to try vera and Frida Kahlo exhibit last year. plore ways it can work with local cos- S C something new. And in 2012, when it staged the tume designers and other creative I E N Salvador Salort-Pons has settled in Tony Award-winning Broadway musi- businesses, bringing their work into its T I S at the Detroit Institute of Arts after cal “Fela!” the Music Hall found a way productions, Brown said. T S succeeding longtime Director Gra- for more than 40 groups to benet and e support the Knight Foundation ham Beal last fall. Soon, he and Brown to take ownership in the production. has given local artists and the arts sec- will be joined by new leaders at the Collaboration with other arts and tor has helped spur a new generation University Musical Society in Ann Ar- community groups has been episodic of millennial leaders in the cultural bor, where President Kenneth Fischer for MOT, Brown said. But strategic al- sector, said Noland, a member of the is winding down his 30-year career, liances are now “our default position Miami-based foundation’s board. And and at the University of Michigan Mu- in terms of how we do business.” the New Economy Initiative has sup- seum of Art where Director Joseph Connecting with broader audienc- ported a number of new design rms Rosa is leaving after six years to lead es is not only incumbent on cultural and other creative businesses. the Frye Art Museum in Seattle. groups given their mission, it’s in- “If we can nd a way to nurture ),6+%(&.7+203621&$55 +8%(5,1& And to the north, the Interlochen creasingly of interest to funders. these companies and individual artists HQJLQHHUV_VFLHQWLVWV_DUFKLWHFWV_FRQVWUXFWRUV Center for the Arts is searching for a “From Kresge’s perspective, we feel so they stay here and don’t move away 1RYL_0DFRPE__IWFKFRP successor to CEO Je Kimpton, who is this is a time for those on the funding to New York or somewhere ... then set to retire next summer. side to ensure that we increase oppor- we’re going to build out a new part of Smaller arts organizations are also tunities for people of all backgrounds the economic life of this community.” seeing changes in leadership. e ven- in the Detroit area to participate in ar- erable Scarab Club, which maintains a tistic and cultural expression,” said clubhouse for art exhibitions and pro- George Jacobsen, senior program o- vides space for artists and arts educa- cer for the Detroit Program at the tion programs, has been on the hunt Kresge Foundation, in an email. for leadership for more than a year. It “ at’s particularly true for low-in- has selected a new executive director come individuals and people of color.” but not yet announced who will lead It’s a time for seeing more art and the organization next. more support for art in nontraditional And Living Arts in southwest Detroit, spaces and neighborhoods through- which provides youth art education out the city, Jacobsen said. “ e next programs, has launched a national generation of leadership has an oppor- search for a new leader, following late tunity to spur a new discussion about August news that Cara Graninger, ex- the role of arts, culture and creative ex- ecutive director for nearly nine years, pression across the community.” plans to step down to return to a teach- Understanding the painting on the ing artist role with the organization. wall, cultural organizations have begun “New leadership always has the op- looking for new ways to connect with portunity to take their organizations their communities in recent years. into the next direction,” said Mariam e DIA began taking reproduc- Noland, president of the Community tions of its famous artwork out into the Foundation for Southeast Michigan. community in 2010 through its “In- “How cultural organizations engage side/Out,” a program replicated in with their communities is going to be Philadelphia, Miami and Akron, Ohio, dierent in the future ... and the new last year, through a $2 million grant leaders can jump on this.” from the John S. and James L. Knight Foundation. Expanding audiences And after settling its six-month- If you’re going to succeed in the long strike with its musicians in 2011, arts, you have to widen your circle of the Detroit Symphony Orchestra be- audience members, Fischer said. gan performing out in the community. 36 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016

pleted and underway along Washing- Karp, a key developer in Capitol BOOK ton and immediately adjacent. Park who owns the Gateway Center FROM PAGE 1 In the early 1970s, Mayor Coleman Building (bought for $700,000) and a Young wanted it demolished, as did handful of other Washington Boule- For now, exterior restoration work Mayor Kwame Kilpatrick three de- vard properties, plans to tear down is underway in what will be a detailed cades later, John Ferchill says. Gateway to make way for a mixed-use and painstaking process to bring the But after a false redevelopment start development with a multifamily and 38-story Book Tower, which brie y and using a complex web of 22 nancing parking component. was Detroit’s tallest building, back layers, the Ferchills eventually complet- Karp said his new unnamed project from the verge of oblivion with new ed the restoration of the 33-story hotel, will likely be 15 stories, with the rst 10 tenants and uses after sitting vacant also designed by Kamper. having about 800 parking spots and the and neglected for years, like so many “It was a dog ght,” Eric Larson, remaining ve oors having about 200 of the other Washington Boulevard CEO of the Downtown Detroit Partner- residential units. ere would also be buildings. ship and Bloomeld Hills-based Lar- 15,000 to 20,000 square feet of rst- oor son Realty Group, said of the battle for retail with a “larger, service-oriented (re- Time’s ravages nancing the project. “And the interest tailer) such as a grocer with prepared ere are pink leather hair salon in Capitol Park would not have hap- foods.” A project budget and timeline chairs still in the building. Old type- pened.” have not been determined. writers. Recording studio equipment. Today it has more than 450 rooms, Apartment developer and manager Documents and other miscellaneous 35 suites, four restaurants, including Jonathan Holtzman, whose new com- paperwork. Open newspapers from Michael Symon’s Roast, three ball- pany is City Club Apartments LLC, has decades ago. Personal items. rooms and 16 meeting rooms. had a big hand along the boulevard, In short, it’s almost like everyone From that point, minus a lag during buying the former Trolley Plaza apart- who worked in the building left at the economic meltdown, developers ments, renovating them and then re- once, in a hurry. began looking west of Woodward Ave- branding the 29-story high-rise with “An extreme amount of clutter and nue on Washington and in the nearby more than 350 units as Detroit City damage on the inside, as far as ceilings triangular Capitol Park area for redevel- Apartments. falling in and water damage,” said John opment opportunities among down- He is also planning the Statler City Olszewski, vice president of construc- town’s oundering building stock. Apartments, a ground-up project ex- tion for Bedrock, which has bought “Washington Boulevard, specically pected to cost at least $35 million, on more than 90 Detroit properties in and from Michigan north, with its grand- the site of the razed Statler Hotel. around downtown in the past ve ness, inventory of structures, and inher- (“If the Statler Hotel was still stand- years. ent green space, is the only obvious di- ing, it would be a redeveloped build- But the interior work, at this point rection,” said Richard Karp, a downtown ing right now,” Di Rita said.) however, plays second ddle to restor- developer with property on Washington In all, the plan is for 284 apartments ing building’s elaborate exterior, Boulevard and Capitol Park. with 12,000 square feet of restaurant Olszewski said. Fast-forward eight years after the and retail space. Holtzman said in “e biggest and most complex.” LARRY PEPLIN completion of the Westin Book Cadillac June that construction is expected to , project manager for , with a replica of at’s how he describes the three- Brett Yuhasz Bedrock Real Estate Services LLC to late 2014, when Di Rita’s company n- begin in the fall; he was in Europe last one of the steel- lled terra cotta caryatids that have been deteriorating at the Book year plan to restore and preserve the ished the $94.5 million redevelopment week and unavailable for comment. building. Book Tower and Book Building, which of the David Whitney Building at the the Detroit-based company bought a north end of the boulevard. Tipping points year ago last month, along with a lled terra cotta caryatids — carvings of single-pane windows leak and are not From there, it was full-steam ahead. It’s not just Washington Boulevard squat, 30,000-square-foot community semi-nude female gures — with em- energy ecient or durable. e evalua- “At that point, you don't have to hire with the heavy investment interest, of center, for a reported $30 million. bedded steel support for the overhang tion will determine whether the win- the Brookings Institution to gure out course. In all, more than 500,000 square have been deteriorating from rust for dows can be restored or whether they what was going to happen,” Di Rita Development immediately sur- feet was part of the deal Bedrock com- decades, posing a danger to passersby should be replaced with new ones that said. “You have remarkable assets, ca- rounding the four-block area, including pleted with Milan, Italy-based Akno underneath. are historically accurate. pable developers, location and you hundreds of millions of investment in Enterprises, longtime owners of the “It was really in jeopardy of eventually e company said it is taking careful have demand. I think at the end of the Capitol Park immediately northeast of buildings. falling o in pieces,” Olszewski said. steps in the restoration to ensure close day, Washington Boulevard becomes the Westin Book Cadillac, has been Eectively, Bedrock bought the en- So the Book Building caryatids have attention is paid to historical details over Detroit's truly grand street again.” cropping up in recent years. tire block between State Street and been removed and will be replaced with the duration of the three-year exterior Joe Barbat is just one of the latest Perhaps most notably are a pair of Grand River Avenue. e company berglass exact replicas, one of which and interior renovation. investors there, having purchased the projects by Di Rita’s Detroit-based Rox- says a nal redevelopment plan, in- sits covered by a large drape on the rst “Just be patient,” Olszewski said. Gabriel Richard Building at Washing- bury Group, which have injected nearly cluding specics on the mix of uses, oor of the Book Tower next to one of the “You’re going to be surprised at the res- ton and Michigan a year and a half $120 million in investment in the area, has not been determined, although at 10 corbels that have been removed, also toration of this building.” ago. with the David Whitney project on the time it purchased the buildings, to be restored and replaced. Bedrock, one of downtown’s largest Barbat, the CEO and chairman of Grand Circus Park just east of Washing- Jim Ketai, managing partner and CEO One of the most notable elements of property owners, has hired De- West Bloomeld Township-based ton Boulevard and The Griswold, an un- of Bedrock, said the buildings will con- the Book Tower, its exterior re escape, troit-based Kraemer Design Group and Wireless Toyz who develops real estate der-construction $24 million project a tain “a new innovative and unique mix had to be incorporated that way because Cleveland-based MCM Co. Inc. to work through his Barbat Holdings LLC and block away from the Westin Book Cadil- of retail, oce and residential ten- Kamper had never designed a skyscrap- on the historic details of the project, as Houze Living LLC, plans an $18 million lac bringing 80 apartments atop a ants.” er and had forgotten to put one in his well as Ann Arbor-based Walker Res- to $20 million conversion of the oce 10-story parking deck at Michigan and Gilbert, who is founder and chair- original design. Today, the zig-zag stair- toration Consultants. e company building into 104 apartments. Griswold. man of Quicken Loans Inc. and Rock case, going from top to bottom on the also said it has worked closely with the “First and foremost, the Westin Book,” A block away from Roxbury’s Ventures LLC, told Crain’s late last year southern face of Book Tower, is “ready to State Historic Preservation Oce. he said of the primary catalyst for the in- planned $10 million Industrial Bank that the Book Tower “was barren and fall o,” Olszewski said. In some ways, one of those contrac- vestment wave. “at development, Building (which has been renamed the empty for so long and being able to “Pretty bad shape,” he said. “Attach- tors helps Bedrock come full circle with the renovations they’ve done, and Kamper Building) and Stevens Build- overcome that, in a way, is symbolic ments are rusted out, brick is blown out, back to what real estate experts widely the trac that has achieved.” ing renovations is Dan Gilbert’s as-of-yet for downtown." and we do not see that as safe to be on at agree jump-started the investment Other key investors along Washing- unnamed project at 1416 Griswold to “It’s a special building, a beautiful all. It probably has to be taken down, re- wave on Washington. ton include Matt Lester, founder and bring more than 200 so-called “micro architectural gem. You can walk fabbed and put back up.” MCM was founded by Melissa Fer- CEO of Bloomeld Township-based apartments” to the site of a strip club that through it and get a feeling of what it Yet another of the Book Tower’s key chill, daughter of Westin Book Cadillac Princeton Enterprises LLC, who was demolished in March following a may be one day,” Gilbert said. features, its aged copper Mansard roof, Hotel redeveloper John Ferchill. bought the 44-unit Claridge House February 2014 re. Currently, Bedrock and its exterior will be partially replaced and repaired. apartment building for $750,000 in e total project cost is not known, The catalyst project general contractor Ram Construction e copper repair material will be treat- 2012 and spent north of $1 million on but a building permit issued at the end of Services Inc. are focused on the Wash- ed to “give it that green patina (caused by e conversation surrounding renovations. May says the construction cost is $18.75 ington side of the Book properties, long-term oxidation) right from the get- Washington Boulevard's re-emer- “e Book Cadillac was the catalyst million. which includes masonry repairs and re- go.” All copper ashings and water table gence would not have started were it and it remains the anchor,” Lester said. It’s likely to well exceed that as proj- storing or replacing granite, limestone cladding, which prevent water damage, not for Cleveland-based Ferchill “But the bones of Washington Boule- ects continue to emerge west of Wood- and terra cotta bricks. will be replaced, along with the at built- Group’s redevelopment. vard, we saw it as always having great ward, downtown’s spine. e 6-foot-wide overhang atop the up roof on the Book Building. More than a decade ago, the 1924 potential for investment and for being “One need not be a seasoned real es- 13-story Book Building, which has been Also planned is an evaluation of the building that cost $14 million to build ultimately highly desirable to run a tate professional to observe the path of powerwashed along Washington, has buildings’ more than 1,000 original win- sat vacant and decaying. At the time, business and reside. It’s a beautiful, revitalization from Capitol Park is not been disassembled and removed, even- dows, which are expected to be the sub- “nobody believed it was heading for wide boulevard right in the heart of north, east, or south, but indeed west,” tually to be rebuilt. ject of a Historic District Commission anything but the wrecking ball,” said things and yet has a little peace, tran- Karp said. Every 16 feet of it weighs about 15,000 meeting next month. e steel frames David Di Rita, principal of Roxbury quility and green space that others in Kirk Pinho: (313) 446-0412 pounds, Olszewski said. e 12 steel- have rusted over the years; the outdated Group, which has several projects com- the central business district don’t.” Twitter: @kirkpinhoCDB CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 37

process, the way these auto parts gument to be made, but I think Pro- pens with DPS (Detroit Public DUGGAN plants get sited, as I have learned with posal B is probably the approach that Schools). at’s going to be the rst FROM PAGE 3 Flex-N-Gate and Sakthi (Automotive probably is the fairest balance be- question. We just don’t know. e DPS www.crainsdetroit.com Group USA), they get a contract for tween assuring the community there ocials tell me that their open houses Editor-in-Chief Keith E. Crain “representative residents, businesses parts for the next model for Ford or GM will be bene ts and also assuring busi- have been very well attended, and Group Publisher Mary Kramer, (313) 446-0399 or [email protected] and nonpro t organizations” within or FCA, and they have a very short pe- nesses that it’ll be done ... they are hopeful that the enrollment is Associate Publisher Ron Fournier, (313) 446-1674 or the “host community,” based on U.S. riod of time to build that parts plant stabilized. at doesn’t always mea- [email protected] Census tract information. and get it up and operating. Why does B work when A doesn't? sure who might be going out the door. Editor Jennette Smith, (313) 446-1622 or [email protected] In the development community, We have a lot of communities Duggan: B has the city planning de- In the neighborhoods across the Director, Digital Strategy, Audience Development Nancy Proposal B, which was developed by around Detroit who have industrial partment driving the process, with, I city, you’ve had suburban school dis- Hanus, (313) 446-1621 or [email protected] Detroit City Council Member Scott parks with land ready to go who can think, three members of the commu- tricts iering the neighborhoods say- Managing Editor Michael Lee, (313) 446-1630 or [email protected] Benson and others as a less onerous give them a quick “yes” or “no.” But if nity being on the negotiating commit- ing, “Come to our district.” Managing Editor/Custom and Special Projects Daniel alternative to Proposal A, would re- Proposal A were to pass, it says if you tee and a short timeline. Whereas A So we are going to see what shape Duggan, (313) 446-0414 or [email protected] quire community bene ts agreements want to put a business over $15 million actually excludes the mayor or city DPS is in in the next month. If DPS en- Assistant Managing Editor Kristin Bull, (313) 446-1608 or [email protected] for developments $75 million or more in with any kind of city support, you council or city sta from participating, rollment is stabilized and their nanc- Digital Editor Carlos Portocarrero (313) 446-6056 or and receiving $1 million or more in have to send a notice to the city clerk. so the process could drag out for a year es are stabilized, then they’ve got an [email protected] public incentives or on property with a e clerk and the council somehow or a year and a half and there’s nothing outstanding superintendent in Alycia News Editor Beth Reeber Valone, (313) 446-5875 or [email protected] cumulative market value of $1 million contact people in the surrounding anyone from the city could do about it. Meriweather, and they start talking Senior Editor Gary Piatek, (313) 446-0357 or more that was sold or transferred to Census tract. ose people somehow So, B is something we could work with. about education instead of money, or [email protected] a developer. form a committee, but Proposal A Developers aren’t crazy about it, but then that’s one direction. If the enroll- Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] Duggan addressed that issue and doesn’t say how they form a negotiat- it’s something we could work with. ment doesn’t stabilize and DPS is in Newsroom (313) 446-0329, FAX (313) 446-1687, more in his conversation with Crain’s. ing committee, doesn’t say how many signi cant nancial turmoil, that’s an- TIP LINE (313) 446-6766 What follows is an edited transcript. people are on the negotiating commit- You wouldn’t have a problem if we other question. Until I know which di- REPORTERS tee. ey could be negotiating with 50 wrote that you’re endorsing it? rection that is, I’m not going to be able Marti Benedetti (313) 446-0416 Regarding community benets or 100 people. It doesn’t say how long I haven’t made a decision on a for- to gure out what to do next. Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. agreements, there are two pretty dif- the negotiations go on, if they go on mal endorsement. I’m still in the pro- (313) 446-0325 or [email protected] ferent proposals. Is there one you’re months or even years. If the site hap- cess here. I haven’t taken a position. I One option obviously is to have bet- Chad Halcom Covers litigation, the defense industry, pens to be near the city border, the haven’t made a nal decision. education, Macomb and Oakland counties. (313) 446-6796 more in favor of? ter partners in Lansing. Could you see or [email protected] I think my partners on council have neighboring Census tracts would in- yourself spearheading a campaign Tom Henderson Covers banking, šnance, technology and delivered, I think, good results on clude the suburbs and you could have One of the things you ran on three that makes this an issue? biotechnology. (313) 446-0337 or community bene ts for the last three suburbanites who would get to say I have a whole series of strategies set [email protected] years ago was streamlining some of Kirk Pinho Covers real estate, city of Detroit. (313) years. You look at development after “no” to a development in Detroit. the processes in city government ... up, but we are not going to talk about 446-0412 or [email protected] development and we’ve gotten com- So, as I talk to people who are trying I will vote for B. Endorsing suggests them before we do them. e rst Adrienne Roberts General assignment. (313) 446-1612 Bill Shea, enterprise editor Covers media, advertising and mitments on hiring. to site manufacturing plants, you have a level of public campaigning that is thing I need to see is if DPS is nancial- marketing, the business of sports, and transportation. Every one of our developments that a choice between a suburban commu- dierent than a personal decision. ly stable or is it not, and that will dictate (313) 446-1626 or [email protected] we’ve done — Flex-N-Gate agreed, nity with a site ready to go and a yes or Right now, I’m going to vote for it. what we do next. But I’m going to be Lindsay VanHulle, Lansing reporter. (517) 657-2204 or [email protected] where they are building that manufac- no approval, or put yourself in the city What I do beyond that, I just haven’t heavily engaged in the schools issue. Dustin Walsh, senior reporter Covers the business of law, turing plant over on the I-94 corridor of Detroit in a process where you don’t made a decision. e question is: Is DPS in crisis or is auto suppliers, manufacturing and economics. where they are going to end up hiring know who you’re negotiating with, it stable? e strategies we take will be (313) 446-6042 or [email protected] Sherri Welch, senior reporter Covers nonprošts, services, 600 people. ey agreed 51 percent of how many or for how long. You ran in part on streamlining the driven by whether it’s a crisis or wheth- food, retail and hospitality. (313) 446-1694 or swelch@crain. the workers in the construction peri- I think we are going to get passed up process, cutting some of the red tape. er it’s nancially stable. com od, the hours would be Detroit jobs. and I think Proposal A would be dev- There have been some changes to us- ADVERTISING Next to it, we’ve got Linc, the distri- astating. ... Getting manufacturing age for restaurants with ordinances. How has the city’s relationship with Sales Inquiries (313) 446-6032; FAX (313) 393-0997 bution company that has hired 80 per- jobs in the city will be over if Proposal But what more needs to be done? Lansing changed since you have been Advertising Director Matthew Langan Senior Account Manager Katie Sullivan cent Detroiters. What we have done is, A passes. I hear from businesses every day in ošce? Advertising Sales Gerry Golinske, Catherine Grace, in each individual deal, we have en- how much faster the permitting pro- When I was a deputy county execu- Joe Miller, Diane Owen, Sarah Stachowicz, gaged the neighbors, we have entered Are you saying you don’t favor ei- cess is. I was at an event with some tive, we were able to get a lot of legisla- ClassiŠed Sales Manager Angela Schutte, (313) 446-6051 into a binding agreement for real ben- ther of them? business folks and they told me the tion through Lansing, including the ClassiŠed Sales Lynn Calcaterra, (313) 446-6086 e ts for jobs in the city, for aordable I will probably vote for Proposal B. I story of a gentleman who wanted to legislation that led to the building of Meetings/Events Director Kim Winkler housing, and it’s been approved by city think even the members of council get his permit on Friday so he could Comerica Park and Ford Field, legisla- Events Manager Kacey Anderson Senior Art Director Sylvia Kolaski council and they are locked contractu- who support this will say the agree- open on Monday. Didn’t have his last tion that restructured the juvenile jus- Marketing Manager Marilyn Banes ally into it. I feel like the process that ments we have done are good and we repairs done by 5 p.m. on Friday and tice program. When I was at the De- Special Projects Coordinator Keenan Covington we’ve used has been eective. should institutionalize this. Well, no our inspector came in at 6 a.m. Mon- troit Medical Center, I was able to get Sales Support Suzanne Janik Production Manager Wendy Kobylarz I think Proposal B is probably the city in America has institutionalized it day and nished the inspection so he legislation through that kept DMC in Production Supervisor Andrew Spanos closest to that process, if you want to into an ordinance. A lot of people have could open it. nancially strong position on a bipar- CUSTOMER SERVICE make a formal (ordinance). Proposal negotiated it in individual agreements. tisan basis. And we’ve had great suc- Main Number: Call (877) 824-9374 A, on the other hand, I think will guar- What they say is, “Well, you might not Where do we stand now on progress cesses — foreclosure prevention bills, or [email protected] Subscriptions $59 one year, $98 two years. Out of state, antee we never see another auto parts be here in ve years. We need to insti- against blight? Two or three years ago, scrap metal enforcement bills. My $79 one year, $138 for two years. Outside U.S.A., add $48 per plant in this city again because the tutionalize this.” I think there is an ar- there were about 78,000 that were style is not to get into the personal, to year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. blighted. try to stick to the issues. Single Copies (877) 824-9374 We are doing a reassessment now, I sat personally with about 100 of Reprints (212) 210-0750; or Krista Bora at INDEX TO COMPANIES but my guess is we’ll probably be the 110 state representatives. Very dis- [email protected] (313) 446-0406 or These companies have signicant mention in this week’s Crain’s Detroit Business: To Šnd a date a story was published somewhere between 20,000 and appointing that overwhelmingly they e-mail [email protected] Altair Engineering ...... 26 Invest Detroit ...... 5 30,000. But we are actually going told me when I sat with them that they Crain’s Detroit Business is published by Arab American National Museum ...... 17, 19 Je—erson East ...... 33 through and checking that right now. agreed we were trying to do the right Crain Communications Inc. Autoliv ...... 26 Jewish Ensemble Theatre ...... 16 thing on the schools, and we didn’t get Chairman Keith E. Crain President Rance Crain Bedrock Real Estate Services LLC ...... 1 Just Baked Cupcakes LLC ...... 27, 28 How big of a setback was it that you the vote. Treasurer Mary Kay Crain Charles H. Wright Museum ...... 17, 19 Link Engineering ...... 26 didn’t get the schools legislation? But I started o with the fact that I Senior Executive Vice President William A. Morrow Cooper-Standard Automotive ...... 26 M-1 Rail ...... 7 It was terrible. think I have successfully raised the un- Executive Vice President/Director of Strategic Operations Chris Crain Creative Many Michigan ...... 14 Macomb Community College ...... 6 derstanding, and the next time I go Executive Vice President/Director of Corporate DataFactZ ...... 26 Michigan Economic Development ...... 5 Why did it happen? back, I’m going to go back with allies Operations KC Crain Dayco Products LLC ...... 26 Michigan Opera Theatre ...... 1, 16, 21 Because you had a partisan vote in who understand what was happening Vice President/Production & Manufacturing Dave Kamis Detroit Institute of Arts...... 17, 19, 35 Museum of Contemporary Art Detroit ...... 17, 21 which Republicans in the House and in the House. But the next time we Chief Information O“cer Anthony DiPonio Detroit Symphony Orchestra ...... 17, 19 Music Hall Center for the Performing Arts ..16, 21 Senate decided there was no circum- come back, we’ll come back with allies G.D. Crain Jr. Founder (1885-1973) Detroit Zoo ...... 21 National Food Group ...... 30 stance under which they wanted to on both sides of the aisle. I started out Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business O“ces Domino’s Pizza ...... 26 Oakland Community College ...... 6 have any regulation of charter schools, with an agreement with the governor. I 1155 Gratiot Ave., Detroit MI 48207-2732; Dow Chemical ...... 26 Peloton ...... 31 which was an interesting situation be- thought that counted. Now I under- (313) 446-6000 Federal-Mogul ...... 26 Phimation Strategy Group ...... 27, 29, 30 cause I had many Detroit charters who stand that, to get things through a Re- Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published Federal-Mogul Holdings ...... 1 ProQuest LLC ...... 26 stood up in favor of what we wanted to publican Legislature, I need allies in weekly, except for a special issue the third week of November, and Gemphire Therapeutics ...... 9 Red Cedar Spirits ...... 25 do with the Detroit Education Com- addition to the governor. no issue the third week of December by Crain Communications Grand Traverse Distillery ...... 25 Retrosense Therapeutics LLC ...... 10 mission. ey were not afraid of being Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing o¦ces. POSTMASTER: The Henry Ford ...... 17, 21 Rise Baking LLC ...... 29 measured. You going to run next year? Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Herman Miller ...... 26 University Musical Society ...... 35 I’ll make that decision at the end of Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # Holocaust Memorial Center ...... 16 Valentine Distilling ...... 25 What’s the next step? How do you the year. Right now, my head is into a 136760444. Printed in U.S.A. Entire contents copyright 2016 by Crain Communications Inc. All Huron Capital Partners LLC ...... 31 Wayne County Community College District .... 6 get the kind of oversight you think you presidential campaign. We need to see rights reserved. Reproduction or use of editorial content in any IAC Group ...... 26 Wheelhouse Detroit ...... 24 need? how that plays out. We’ll worry about manner without permission is prohibited. Inteva Products ...... 26 Zingerman’s ...... 23 Right now, I need to see what hap- next year after we get through this cycle. 38 CRAIN’S DETROIT BUSINESS // SEPTEMBER 12, 2016 ON THE WEB RUMBLINGS WEEK SEPT. 3-9 Detroit DigitsType that n Canada-based Enbridge Inc. will New shop sells licensed Kosch to help buy Spectra Energy Corp. in a $28 launch Midland A numbers-driven look at last billion stock-for-stock transaction that week's headlines: will create the largest energy pipeline Bo Schembechler apparel and storage company in North eatery, beer garden America, Bloomberg reported. evotees of University of Michigan $1.4 million Houston-based Spectra is in a Dfootball history have a new outlet idland Brewing Co. has The cost to build Skinner Park, an joint-venture project with Detroit- that caters to their retail needs: The contracted Rochester-based environmentally friendly area based DTE Energy Co. to create the “Bo” Store. MKosch Dining Solutions to help launch newly opened on Detroit’s east Nexus pipeline, a $2 billion project e 2,000-square-foot shop at 333 and operate a new restaurant, beer side. The project started with an that will pipe natural gas sourced S. Main St. in Ann Arbor sells Bo garden and event space in Midland. idea from the 2013 Denby High from Appalachia to Michigan. Schembechler-inspired apparel and Opening in early 2017, the new School graduating class to create a n PulteGroup Inc. said its merchandise under a deal with the additions will be located with the safe place for recreation. president, Ryan Marshall, will take iconic late football coach’s estate. microbrewery Midland Brewing has over immediately as CEO, ending a e store, lined with images of the operated since 2010. months-long campaign by the coach and signs of his famed sayings, Midland Brewing is investing $4 million Atlanta-based homebuilder’s founder is wholly owned by Ann Arbor-based The amount of funding the city of $2 million in the project, including a for a change in leadership. Marshall Underground Printing, a custom Detroit is receiving to revitalize the $1 million renovation with upgrades will replace , who will apparel company launched in 2001 by Fitzgerald neighborhood in Richard Dugas to the brewery. Kosch, which will remain as executive chairman of the UM students and northwest Detroit. The money is Rishi Narayan Ryan operate everything but the board until the company’s 2017 Gregg. from Reimagining the Civic UNDERGROUND PRINTING microbrewery, said the ve-year shareholder meeting. PulteGroup was “Underground Printing has worked Commons, a national initiative A retail shop selling licensed contract is worth about $1 million in formerly based in Bloom eld Hills. with the Schembechler estate for Bo that seeks to counter trends of merchandise and apparel new revenue. more than ve years, and the store is a Schembechler economic and social has opened at 333 S. Main St. in Ann partnership based on that fragmentation and disinvestment OTHER NEWS Arbor. n e relationship,” Narayan said via email. COMPANY NEWS in cities. Detroit Federation of n Troy-based company Rainbow Teachers said it reached a tentative e store opened Sept. 1, two days sunglasses. Narayan said the store has Child Care Center plans to construct a agreement with the Detroit school before Michigan’s 63-3 season- an exclusive license to produce new site in Detroit’s Midtown $150 million district, AP reported. e deal, which opening victory over the University of Schembechler merchandise, and is neighborhood to meet rising demand The estimated cost of the new covers more than 2,900 teachers and Hawaii at Michigan Stadium. It collaborating with the estate. from families in the area. It plans to Little Caesars headquarters in paraprofessionals, must be rati ed in employs 10. “e look and feel of the store, break ground on the two-story, Detroit, the pizza chain announced a vote by union members and For sale in the store are T-shirts, products and presentation are 12,000-square-foot center in 30 to 40 at a groundbreaking ceremony for approved by a review commission. hoodies, oxfords, jackets, vests, something we are working on days and complete it in time for a the planned 234,000-square-foot Meanwhile, Norman Shy, a sweatpants, “Bo” ties and even together,” he said. spring opening. Little Caesars Global Resources businessman who sold supplies to the n S&P Global Ratings upgraded Center. The building is expected to school district, was sentenced to ve Detroit-based Henry Ford Health be completed by 2018. years in prison in a bribery and Ben & Jerry’s co-founder to speak at Entrepalooza System’s long-term bond rating to “A” kickback scheme involving a dozen with a stable outlook, while Moody’s principals and one administrator, and e co-founder of Ben & Jerry’s, Green eld, from the Vermont- Investors Services maintained the be available for customers beginning four more Detroit school principals Jerry Green†eld, will speak Sept. 23 at based ice cream maker, will be joined system’s “A3” rating and raised the Sept. 21. e renovated store is were sent to prison for taking cash the 2016 Entrepalooza in Ann Arbor. by Jeremy Peters, music publishing outlook from stable to positive. HFHS expected to reopen in October. and gifts from the contractor. e annual event is held by the director at Ghostly International and expects to re nance a large portion of n Long Point Capital, a private n Engineering researchers at the Samuel Zell and Robert H. Lurie co-founder of Quite Scienti†c its outstanding debt when it issues equity company co-headquartered in University of Michigan led a team that Institute for Entrepreneurial Studies Records; Eric Fretz, a lecturer at UM; xed-rate bonds this week. e Royal Oak and New York, has sold one has been awarded a $3 million grant at the University of Michigan’s Ross Tom Frank, executive director for UM’s system has about $1 billion in of its portfolio companies, New from the National Science Foundation School of Business. e theme this Center for Entrepreneurship; Debra outstanding bonds. Jersey-based St. George Logistics, to to turn human urine into food-crop year: “Creativity rough Expression.” Mexicotte, associate director of UM’s n South eld-based Redico LLC has Chicago-based Wind Point Partners. fertilizer. e team is installing Entrepalooza brings together ArtsEngine; and Michelle Belbroad sold its interest in the project for the St. George provides container freight demonstration toilets in a building on entrepreneurial leaders to share their and Lakin Vitton, co-founders of redevelopment of the former station services for ocean cargo UM’s North Campus for use this fall. insights and experiences with CHISL Design. Admission is free. Michigan state fairgrounds site. Dale imported into the U.S. Terms of the n e formal campaign to urge a students, alumni, faculty and Registration is available at http:// Watchowski, Redico president, COO deal were not disclosed. “yes” vote on the regional mass transit members of the business community. entrepalooza.umich.edu/. and CEO, con rmed the sale but did n South eld-based Lear Corp. tax on the Nov. 8 ballot kicked o with not disclose his company’s ownership announced it acquired a minority an event at Western Market in stake or how much was paid. equity interest in Tempronics Inc., a Ferndale. Voters in Wayne, Oakland, Passport Day allows simpler route to sign-up n Oak Street Health, a company Tucson, Ariz.-based startup supplier Macomb and Washtenaw counties founded in Chicago in 2013 to serve of heating and cooling systems seat will decide on a 20-year, 1.2-mill e Detroit Passport Agency will where expedited processing, with an adults on Medicare, is to announce technology. Details were not property tax increase to fund the simplify the passport application added $60 fee, is two to three weeks. that it will open its rst two facilities in disclosed, but Lear gains exclusive Regional Transit Authority of process for Southeast Michigan Same-day service is not available. Michigan, in Southgate and Detroit’s rights to Tempronics’ technology in Southeast Michigan’s master plan of travelers during the national e agency asks that applicants ll Rosedale Park, in October. automotive applications. bus rapid transit and commuter rail. “Passport Day” event Sept. 24 — a out the online application, and bring n South eld-based powertrain Saturday. a printed unsigned copy and an components supplier Metaldyne e one-day event oers people, accepted passport photo to expedite Performance Group Inc. acquired particularly busy workers unable to the process. Details of what Wisconsin-based Brillion Iron Works, attend an appointment during regular documentation is required can be which designs and produces gray, weekly business hours, a one-stop shop found online at travel.state.gov. ductile and austempered ductile iron to renew passports or apply for the rst e Detroit Passport Agency, at 211 products. Terms were not disclosed, time with no appointment. Routine W. Fort St. in Detroit, will be open 10 Automotive News reported. processing takes four to six weeks, a.m.-2 p.m. on Passport Day. n Chinese-owned Volvo Car Group and Autoliv, an automotive safety group with headquarters in Sweden ‘Don’t Stop’ event to bene­t Music Hall programs and Auburn Hills, said they are creating a jointly owned company to e Born and Raised Detroit e event is in conjunction with develop autonomous driving software Foundation is planning a bene t event Detroit Homecoming, which brings for Volvo cars that is set to start early Friday called “Don’t Stop the Music” more than 200 Detroit area “expats” next year, AP reported. to aid programs by the Music Hall back to town to re-engage them with n e Starbucks at Woodward Center for the Performing Arts the community (see Page 4). and Mack avenues in Detroit’s UNITED WAY FOR SOUTHEASTERN MICHIGAN promoting music education in the e event will feature live music, art Midtown district was to close Sept. 12 United Way for Southeastern Michigan’s rst ever Dine United Event hosted more Detroit Public Schools, and the and an auction on the Music Hall for several weeks of renovations. In than 400 guests at a 400-foot-long dinner table as the organization kicked o its Reaching Higher young adult rooftop. Tickets are $40 in advance and the meantime, a walk-up service will 2016-18 Annual Community Giving Campaign. leadership program. $45 at the door. Doors open at 7 p.m. DBpageAD_DBpageAD.qxd 9/9/2016 4:32 PM Page 1

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