LID - Left NONE CDB.Qxp 10/13/2014 4:16 PM Page 1 CDB Living in the D New CD Magazine Sized 10/6/2014 3:18 PM Page 1

LID - Left _NONE CDB.qxp 10/13/2014 4:16 PM Page 1 CDB Living In The D_New CD Magazine sized 10/6/2014 3:18 PM Page 1

Let’s do this together...

We couldn’t be more excited about The District Detroit, a project that engages the entire city, has a far reaching impact for our community, its people, workers and businesses from every corner of the state.

We can, and we are, changing the conversation about Detroit. It’s an incredible comeback story in the making. Learn more at DistrictDetroit.com 20141020-SUPP--0001-NAT-CCI-CD_-- 10/15/2014 5:12 PM Page 1

FALL 2014 Page 1 FALL 2006

doing business in our bilities and future of Detroit.” Publisher’s note state. The research is clear: Billionaire/philanthropist Eli Broad spoke Metro areas with strong on the opening night about opportunities in ake no mistake, there is a big bet on core cities do better eco- Detroit and how improving education was key. Detroit. nomically than those that Nicole Curtis, host of “Rehab Addict” on ca- M In this special annual Detroit-fo- don’t. Everybody has a ble TV, announced she would focus the sixth cused supplement, we outline just a few: stake in Detroit’s financial season of her popular show on homes in De- ■ Gov. Rick Snyder bet his political capi- well-being. troit. tal that bankruptcy was Detroit’s best path But to become truly sus- Or this from a top executive in the head- to a sustainable future. tainable, Detroit needs investments to create hunting world: “It felt good to be back in ■ Mayor Mike Duggan, a Democrat, jobs for lower-income — and lower-skilled — Detroit and welcomed by the city that raised took a calculated risk that working with Detroiters, and better schools to attract and me,” wrote Billy Dexter, a Chadsey High Snyder’s Republican team and Emergency keep residents. You can find evidence of the School alumus now a managing partner of Manager Kevyn Orr was his best bet until work at the neighborhood level in this report, Heidrick & Struggles. “I feel that I owe De- political power was restored to him. on Pages 38 to 62. troit back for the amazing experiences that I ■ Business and civic leaders are betting For years, Detroit made headlines nationally had as a youth and the foundation that I that Detroit’s cleaner balance sheet will for dysfunction. But the negative buzz seems to bring enough new invest- have as a man.” be turning around. We saw it firsthand in Sep- ment that the city’s George “Iceman” Gervin returned to De- tember, when 160 successful “expatriates” re- population slide troit with his sister Barbara, who writes will end. turned to Detroit for the first Detroit Home- about their experience on Page 43. That should coming, an initiative created by Crain’s Detroit You can find more from “expats” like matter to anyone Business. Gervin, Reid, Curtis and Dexter throughout The “expats” noticed a greater sense of co- this special supplement, which was edited hesion than they remembered. “The Detroit by Amy Haimerl, herself a Detroit trans- Homecoming brought together a group of plant via Brooklyn and a soon-to-be-pub- civic and business leaders, all of whom are lished author of a book about her own De- aligned around the revitalization of a great troit project, the renovation of a home built American city,” wrote Al Reid, a divisional in 1914 in Detroit’s West Village. vice president at Abbott Labs and an “expat.” You see, there is this vibe about Detroit … “The event left me energized about the possi- — Mary Kramer

DETROIT 2.0 CONTENTS 6 The Odd Couple: Gov. Rick Snyder Redesigning Detroit 31 Patrick Thompson Design: Patrick and Mayor Mike Duggan — a Republi- Thompson has been in business for can and a Democrat — transcend labels to These four firms are designing only five years, but he’s already become turn around Detroit. the face of the city. the go-to interior designer for Detroit’s creative businesses. His biggest commis- Hamilton Anderson Associates: 9 Billionaire Buddies: Legendary in- 27 sion was making over the DIA’s Kresge vestor Warren Buffett and Detroit’s own Architect Rainy Hamilton never left De- Court. Dan Gilbert are fast friends. Here’s how they troit. He drafted the master plan for Belle met. Isle and is now designing the $60 million 32 Barton Malow: Construction manage- mixed-use project Orleans Landing on the ment firm Barton Malow may be based waterfront. 12 Spending Spree: Dan Gilbert and the in Southfield, but its roots are deep in De- Ilitch family have amassed Detroit troit. The company is actively finding ways property portfolios — but they have very 28 White Construction: If you’ve walked to get Detroiters and Detroit-based con- different development styles. through Detroit, you’ve likely walked tractor jobs on the upcoming arena pro- through the work of W. Bernard White. His ject. 18 (Re)Building on Up: It’s getting easier construction firm has been involved in Corktown to finance commercial real estate in De- Campus Martius, Eastern Market and now troit. the Detroit Red Wings arena. SEE PAGE 2

PIERRETTE DAGG/CDB 20141020-SUPP--0002,0003-NAT-CCI-CD_-- 10/15/2014 5:07 PM Page 1

Page 2 FALL 2014

FROM PAGE 1 CONTENTS ESSAYS FROM THE EXPATS

rain’s Detroit Business created and convened the Detroit Homecoming, a C three-year initiative to re-engage successful Detroit expatriates in their hometown as it emerges from bankruptcy. It began with an inaugural Homecoming event, Sept. 17-19, that attracted 160 former metro Detroiters for tours, speaker sessions and networking. Speakers included Detroit Mayor Mike Duggan, investor Warren Buffett and local investors and entrepreneurs. The goal: Encourage expats to re-engage through investment, philanthropy and re-connecting with leaders in their hometown. A few expats wrote essays about their experience and the future of their hometown: Ron Fournier, editorial director of the nonpartisan political publication National Journal, reflects on growing up in Detroit and why even his mom thinks the city can rebound, Page 4 Dan Doctoroff, New York City’s deputy mayor for economic development from 2002-2008, outlines how Detroit can enjoy a Harlem renaissance, Page 11 David Feehan, who consults with cities seeking to develop downtowns and strong neighborhoods, reflects on how far downtown Detroit has come since he helped form When the community works together, the Downtown Detroit Partnership, Page 36 Barbara Gervin-Hawkins and her brother, the community works NBA great George Gervin — both alums of Martin Luther King High School in Detroit — commit to investing in the city, Page 43 A healthy, vibrant community depends on the participation of its members. Vahe Tazian, a lawyer in Connecticut Bringing a neighborhood together to bring about positive change is no small with three degrees from metro Detroit-area accomplishment. universities, explains why he sees a strong urban core and walkable districts as key to Bank of America is honored to support Crain’s and Detroit Homecoming which keeping recent grads from leaving, Page 65 helps create common goals and a long-term vision for the community. Adam Finkel of Orfin Ventures, reminds

expats of the talent that never left, Page 69. Visit us at bankofamerica.com/Local Scott Sellers, from the local auto dealer family and a private equity investor in San Life’s better when we’re connected® Francisco, outlines the case for investing in Detroit, Page 85 ©2014 Bank of America Corporation | ARH46WCM Martha Boudreau, chief communications and marketing officer at AARP, boosts the Detroit brand, Page 88 For more details and coverage of QQ the September events, visit detroithomecoming.com. 20141020-SUPP--0002,0003-NAT-CCI-CD_-- 10/15/2014 5:18 PM Page 2

FALL 2014 Page 3

Spreading the wealth Bringing investment to DETROIT 2.0 Detroit’s neighborhoods

35 The ‘G’ Word. Is gentrification all bad for Detroit?

Corktown. There are challenges even CONTENTS 38 in Detroit’s most thriving, small-business-friendly district.

40 Osborn. Capers Steakhouse has turned out steak by the ounce for three decades, even as the neighborhood fell around it.

45 East Jefferson. Spanning from downtown to Alter Road, East Jefferson Av- enue spreads through five thriving districts.

49 Grandmont Rosedale. Pop-ups, co- working spaces and more open up on Grand River Avenue, bringing entrepreneurship to one of Detroit’s most stable residential areas.

53 Southwest Detroit. A haven of small businesses, thanks to its mostly Latino and immigrant population. ing, King of Clubs; and the Spirit of De- On the cover troit, King of Hearts. The Detroit deck of cards brings out 57 Brightmoor. A new Meijer store is all the buzz in this northwest neighbor- some of the city’s highlights. From left to Cover illustration and layout: Pierrette hood, but there’s more happening than just right: Gov. Rick Snyder and Mayor Mike Dagg, senior producer, Crain’s Detroit groceries. Duggan share the Jack of Spades; the Business. Belle Isle fountain, Queen of Diamonds; Illustration: Gov. Rick Snyder and Mayor tiger sculpture outside Comerica Park, 61 Avenue of Fashion. This strip of Liver- Mike Duggan: Mark Kotila. nois Avenue between Seven and Eight Jack of Clubs; top of the Penobscot Build- Mile roads was once the height of luxury. Now, restaurants and retailers are returning. Ralph Bland, superintendent of the New 2012, lawyer and entrepreneur Kyle Smit- Making the Grade Paradigm for Education, which manages the ley started the DAA in Brightmoor. Here’s Education in Detroit school, talks about how it happened. what the 29-year-old has learned about education in Detroit. 75 Eli Broad and the EAA. Philanthropist 70 State of the Grade. 100,000 children attend school in Detroit. Here’s where Eli Broad helped fund the new Education 80 Doers in Detroit. These eight groups they go. Achievement Authority of Michigan. Here are small but mighty, making signifi- are his thoughts on the effort and what the cant impacts on Detroiters young and old. 73 Detroit Edison Public School Acade- future of education may be in Detroit. my. Every member of the 2014 graduat- 86 Homecoming in Review. Pictures of ing class of DEPSA was accepted to college. 78 Detroit Achievement Academy. In our expats re-engaging with Detroit.

Design: Bob Allen, senior editor CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the third week of October, and no issue the fourth week of December About this issue by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Copy editors: Gary Piatek, senior Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Editor: Amy Haimerl, editor; Ed Bradley; Heidi Bitsoli; Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, entrepreneurship editor, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Beth Jachman Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. Crain’s Detroit Business Reproduction or use of editorial content in any manner without permission is strictly prohibited. 20141020-SUPP--0004,0005-NAT-CCI-CD_-- 10/15/2014 4:30 PM Page 1

Page 4 FALL 2014 FALL 2006 ESSAY RON FOURNIER Rethinking Detroit Homecoming: Beyond the hype, there’s hope wenty-nine years ago, I stood in cleared of debris, except for a young tree cop, when Quicken Loans founder Dan the driveway at 15285 Coram St. clinging to the burnt-orange ground where Gilbert sits across from me at dinner. in the northeast corner of Detroit our garage once stood. With twiggy arms Gilbert owns much of downtown — and he and said goodbye to my parents and a few fluttering leaves, the sapling seems employs a huge private security force to T — and to my hometown. The end to be waving hello. Or is it waving me away? keep the streets safe. Meanwhile, my father’s was just the beginning for both the industri- Chuckling at the thought, I pull out of the beloved Detroit Police Department is cash al era and the newspaper industry. The only rutted, weedy driveway and aim my rental starved and, like the city, a shadow of its for- job I could find was in Hot Springs, Ark. car north. A 10-minute ride will take me mer self. My mother was raised across the street across Eight Mile Road to St. Clair Shores, Gilbert seems like a good guy — or at from 15285 Coram. My father grew up three where I’m meeting my mother for breakfast. least a guy who cares about the city and is doors down. Their fathers, uncles, aunts and I punch “Mom” on my cellphone, and she trying to do good by it. He tells a bunch of cousins all lived nearby and worked for the answers on the first ring. We both ask, “You us, “This city, it’s going to shock people in Big Three — a family lifted into the middle home?” five years.” class by union wages that grew decade after Before finishing that story, what can I tell Come on. Shock? Really? decade until my last one in Detroit, the you about this Detroit Homecoming con- Yes, Gilbert insists. 1980s. ference? Bottom line: It’s a sales job — all Built like a fireplug, Gilbert speaks in “Be good,” Dad said. hype and hope and “please invest here.” The rapid bursts of big words and ideas, and I was 22, a University of Detroit graduate city’s corporate and political elite hope to with a confidence that is as infectious as it is who had not traveled outside metro Detroit dazzle the Detroit expats, mostly wealthy rehearsed. In five years, he says, downtown except for a high school trip to Iowa and business men and women who might place Detroit and Midtown — an emerging time spent at the family cottage in nearby bets on the city. neighborhood of hipsters and young entre- Canada. Everybody, it seemed, had a cottage We get private tours of the city’s cultural preneurs — will be knitted together by a those days. The American Dream roared to attractions (the Motown Museum and bat- new hockey arena/business district. Also, life in Detroit every Friday afternoon, when ting practice at Comerica Park, home of the thousands of abandoned houses and other factory workers — riding cars they built and Detroit Tigers); of its new industries (the blight will be erased from every city neigh- bought — steered north to their second tiny Shinola watch factory is no match for borhood. In half a decade, he says, “smart homes. the ginormous auto plants that started leav- investors” will have built the first new “You’ll do great,” Mom smiled. ing Detroit in the 1950s, but it’s hip); and of neighborhoods — developing cheap land in As I ducked into my Ford Escort over- a few recovering neighborhoods (definitely exchange for promises to build police sta- stuffed with belongings, she quickly added, not Coram Street in the crime-infested tions, schools “and you’ll move back to Detroit.” northeast corner). and parks. Some memories soothe. That one aches The organizers didn’t invite me for my Smart investors, — on this September day, anyway, because money. They’re angling for a glowing story Gilbert declares, I’m in town to attend the Detroit Home- about the city’s rebirth, and I suspect they’ll like the Detroit coming, a conference of 160 native Detroi- be disappointed by what I eventually write. Homecoming ters who left the city years ago. I arrived ear- I’m a cup-is-half-empty guy, a professional expats. ly and drove to the old neighborhood. It skeptic — and Detroit is struggling through “There’s no looks like a war zone. I can see the lot where bankruptcy that might, finally, mark the silver bullet my Mom’s childhood home once stood, a rock bottom of a decades-deep hole. The here,” he says. victim of arson a decade or so ago, its climb-out will take years, maybe genera- “It’s not going charred, wooden skeleton buried beneath a tions, if it happens at all. to be one family thicket of wild flowers and brush. Dad’s old This is not my first trip home, not by a or one group. house is the last on the block to look habit- long shot. My wife is also from Detroit, a It’s got to be able for a middle-class family. suburb actually, and we return to Michigan wide. It’s got to The house at 15285 Coram, where Mom several times a year to visit our families or be deep.” and Dad raised four kids and eased their vacation at our cottage in the northern One after an- parents into retirement and death, gave way woods. Two trips this year were for funerals other, Detroit’s to fire this year. Squatters came first, then — my father’s and my mother-in-law’s. leading men addicts and arsonists. The tiny lot is now I’m thinking of my father, an ex-Detroit and women try 20141020-SUPP--0004,0005-NAT-CCI-CD_-- 10/15/2014 4:30 PM Page 2

FALL 2014 Page 5

telling us that she’s hard. They left the city — actually, they say “There are some great moving GM’s the city left them — in waves, after the 1967 things happening Cadillac brand to riots and school integration in 1976. They New York City of love and loathe their city. They romanticize downtown and all damn places. the past and color the present with every Buffett laughs off shade of cynicism. Midtown.”Mom pauses. Gilbert’s attempt While driving to the diner, I tell Mom I think she can see the to secure invest- why I’m in town. “They’ve brought a bunch ment commit- of us expats back to sell us on Detroit, start- shock in my face. ments. Duggan ing tonight.” has no good an- I expect her to take the bait — to rant and to woo us — or our money — back home, swer for the fate of Detroit’s schools. reminisce, like always. Instead, she shakes leavening genuine enthusiasm from scraps Every time expectations outstrip Detroit’s her head and says, “I think Detroit is com- of hope and progress. reality, I think of Dan Doctoroff, the home- ing back.” “It’s not a time of fixes,” says Gov. Rick town boy who served for six years at New Say what? Snyder, a Republican. “It’s a time of rein- “I do, really,” she says. “There are some York City’s deputy mayor. He’s the confer- vention.” great things happening downtown and Mid- ence’s realist, telling the expats to temper “People are starting to believe in the fu- town.” Mom pauses. their aspirations. “The goodwill money runs ture of this city,” says Mayor Mike Duggan, I think she can see the shock in my face. out quickly,” he says in a keynote address. a Democrat, during a PowerPoint presenta- She continues: “For years, whenever you (See Doctoroff’s essay, page 11.) tion on plans to eradicate blight, incentivize said you were from Detroit, people looked housing and fix the water system. I nod my head and take notes as he urges at you with sympathy or made a joke. Now “We’re here to stay,” says Walter Robb, city boosters and leaders to “think small.” they want to know what you know about the CEO of Whole Foods Market, which defied Rather than overpromise, do the little things city, or tell you about somebody they know Detroit skeptics and opened a grocery store well, he says, and create a “virtuous cycle” of moving back into Detroit.” in Midtown. success. One of the young imports is her grand- Mary Barra, CEO of General Motors Co., Fix the streetlights. Repair the roads. Pick daughter, my 26-year-old daughter, Holly. excites us with plans to build a flagship up the trash. If one person notices that the Born in Arkansas and raised in suburban Cadillac sedan at GM’s Detroit-Hamtramck city is picking up garbage on schedule, after Washington, Holly decided after graduating plant. Gilbert and his investor pal Warren years of mismanagement, that person might from college to spend a year or two in com- Buffett yuck it up on stage. The city’s hockey start putting his trash out on time. A neigh- munity service. She joined City Year and prince, Chris Ilitch, gives us a peek at the bor might notice and start dragging her asked to serve in Detroit, a city she visited new arena blueprints. trash to the curb on time, too. three or four times a year while growing up. I bump into Ilitch later. He says the city’s Doctoroff has big ideas, too. Michigan After City Year, Holly quickly got a job at political and business leaders have not been should look at what Abraham Lincoln did to the Detroit News, then fell and love with and this united in 50 years — and I believe him. encourage western migration: Provide ur- married a local guy. They live in Midtown. “America loves an underdog,” he says. “It ban “settlers” free or cheap land in Detroit. Her 22-year-old sister, Gabrielle, graduat- used to be that when I told somebody I was Another idea: Ease visa restrictions so the ed from James Madison University in rural from Detroit, there would be a long pause, city can become a home for 50,000 immi- Virginia a few months ago and now attends and then they’d grants. Finally, Doctoroff says, the mayor law school at Michigan State University, 90 must take control of the city’s schools. miles from Detroit. That leaves just my wife, Waving hello or say, ‘You got a goodbye? A tree great hockey The expats applaud Doctoroff. They love Lori, and our 16-year-old son, Tyler, living grows out of where team!’ Now, when his hope and appreciate his caution. To any- in Arlington, Va. the author’s I say I’m from body who talks to him afterward, Doctoroff We finish breakfast and I reach for the childhood home once check. It’s time to head downtown for the stood. Detroit, people’s repeats these three sentences: “Don’t get eyes light up and ahead of yourself; don’t make promises you start of the conference. they want to can’t keep; say what you can do, and do it.” “When are you moving back?” Mom teases. know all about Breakfast with Mom is at a diner on Jeffer- I think of that sapling on Coram, waving us.” son Avenue near 10 Mile Road, across the hello. “Someday, we’d love to,” I say. I nod. The street from Lake St. Clair, in a modest neighborhood on the southern edge of Macomb “Someday,” she smiles, “you’ll do it.” same thing hap- County, where in the 1980s pollster Stanley pens to me. Greenberg famously found a label for work- Ron Fournier is the senior political colum- It’s all so im- ing-class whites who considered Democratic nist and editorial director of the National pressive, this con- pleas for economic fairness as code for advan- Journal and the author of the forthcoming ference, and yet taging African-Americans. I was raised by two book, In the Ballpark of Perfect, based on his … well, this is still such “Reagan Democrats.” son, Tyler, who has Asperger’s syndrome, and Detroit. Barra People like my parents are good-hearted his time covering the Clinton and Bush White doesn’t bother and tolerant, but social change hit them Houses. COURTESY OF RON FOURNIER CR 20141020-SUPP--0006,0007-NAT-CCI-CD_-- 10/15/2014 3:48 PM Page 1

Page 6 FALL 2014 FALL 2006 SNAPSHOT TRANSCENDING POLITICS Bigger than labels Detroit turnaround work transcends political, state rifts

BY CHRIS GAUTZ state money, and see other actions like tak- CAPITOL CORRESPONDENT Analyst: Duggan’s ing over Belle Isle and making it a state park influence on Snyder as an expansion of state government, he ll the work Gov. Rick Snyder has said. done in his first term to turn vote a nonissue Foster said he thinks those voters will still around Detroit — from the go to the polls but will likely skip voting for bankruptcy filing, to sending in So the political question of the hour is: Will Detroit Mayor Mike Duggan push a governor and vote for other candidates on state financial assistance, to pro- get-out-the-vote campaign on Nov. 4 for the ballot in other races that fit their ideolo- tectingA the art and pensions — was never Democrat Mark Schauer to defeat gy going to win him votes in a city known as a incumbent Republican Gov. Rick Snyder? Add to that Snyder’s pushing of Medicaid Democratic stronghold. The answer may be moot, unless the expansion, the tax on some pensions, sup- election is very close. In 2010, Snyder received 5 percent of port for the New International Trade Cross- Political analyst Eric Foster notes that in votes cast in the city; most analysts expect it 2010, only 175,400 votes were cast in ing and wanting to raise taxes for roads, and to be about the same on Nov. 4. Detroit out of 3.2 million statewide. it can be too much for some, he said. “He could cure cancer, walk on water and Foster projects that this year the turnout “That’s a lot of sins in that wing of the Re- do a back flip, but the fact may be even less — or 5 percent of the total statewide count. publican Party,” Foster said. “There’s a pos- that he has an ‘R’ next to If Snyder wins, Foster said, “you can’t sibility that he may see some voter backlash his name keeps him from put it on the sitting mayor.” from that wing of the party.” getting support in a But business leaders outside of metro De- meaningful way from the political opposites, they are two “grownups” troit support Snyder’s efforts in Detroit. city,” said Sandy Baruah, who know that big problems sometimes re- “So often we hear from outsiders that president and CEO of the quire tough decisions and calculated risks, their perception is that Detroit is Michigan,” Detroit Regional Cham- said Rich Studley, president and CEO of the said Jackie Krawczak, executive director of ber. “In three years, Gov. Michigan Chamber of Commerce. the Alpena Area Chamber of Commerce. Said Matthew Haworth, chairman of Baruah Snyder did more for De- “We need Detroit to be the best it can be.” troit than his predecessor Holland-based Haworth Inc.: “I think that’s For cities like Alpena, she said, it’s not just did in eight years.” one of the wonderful things about Gov. Sny- about perception; it’s tangible. But what Snyder has done, say many busi- der. He’s taken on some difficult issues and When the auto industry went through the ness leaders from around the state, is im- been always principled, but also with a good downturn, many from the Detroit area with prove the perception of Detroit inside and touch of pragmatism. I think that comes second homes in Alpena couldn’t afford to outside Michigan. And in doing so, he has from his accounting background.” keep them and had to sell, and real estate improved his own image, too. Studley said Duggan, too, from his time as prices in the city went down, she said. “The business community thinks it (De- a deputy Wayne County executive, and as Fewer tourists back then, she said, also troit’s image) is a critical CEO of the Detroit Medical Center, learned meant fewer dollars being pumped into the issue for the perception of to set aside disagreements and make tough local economy. the state,” said Michael decisions to encourage change. “We rely on the people of Detroit to visit Jandernoa, founder and our community,” she said. chairman of 42 North Statewide impact Communities that might have once felt Partners LLC, a Grand that Detroit was a drag now realize that Rapids-based investment While Snyder’s actions aren’t likely to win when Detroit gets momentum, “it is really management firm. him many votes from Democrats in Detroit, able to drive the whole state,” said Doug Snyder’s unlikely part- it could also lose him some support from Rothwell, president and CEO of the Busi- Jandernoa ner in this effort? Detroit conservative Republicans, said Eric Foster, ness Leaders for Michigan. Mayor Mike Duggan, a senior consultant and chief strategist for Rothwell said people attribute much of Democrat who has worked with Snyder in- West Bloomfield Township-based LB3 that to the work Snyder has done not just in credibly well, Baruah said. Management, a management and consulting his policies but in his travels around the “These are two very pragmatic, get-it- firm. state, always talking positively about the city done kind of leaders,” Baruah said. Tea Party conservatives and Libertarians and why it is important. While Snyder and Duggan may seem like don’t like his investments in Detroit with “I think he’s getting recognized for it, and 20141020-SUPP--0006,0007-NAT-CCI-CD_-- 10/15/2014 3:56 PM Page 2

FALL 2014 Page 7

ASSOCIATED PRESS Michigan Gov. Rick Snyder introduces Detroit Mayor Mike Duggan before signing legislation June 20 to provide state funding for Detroit municipal pensions as part of city's bankruptcy. The ceremony was held at the refurbished Globe Building in Detroit.

I think it matters a great deal,” Rothwell people understand that what happened, had ing bankruptcy,” he said. “People can said. “The divides between east and west to happen.” choose to focus on differences, or leaders Michigan that maybe were there a decade or Others applauded the move. Jandernoa, can choose to focus on what they have in more ago have really faded away. People re- of 42 North Partners, said Snyder’s combin- common.” alize all over the state that when Detroit ing of state funds and private sector dona- Baruah added that Snyder and Duggan does well, the whole state does well.” tions to support both the DIA and pensions deserve credit for creating an environment That doesn’t mean they like everything was a “stroke of genius … . The governor’s that encourages nonpartisan alignment. about it, Krawczak said, especially the leadership was absolutely brilliant,” he said. “The governor, the mayor, the emer- $195 million that was part of the “grand gency manager, the City Council, the phil- bargain” package of legislation Snyder anthropic and business community, all the signed this year to create a fund to support Election Day effects key players for a society are now aligned,” Detroit pensions and immunize from bank- As a member of the board of directors for Baruah said. “This is what’s making funda- ruptcy the sale of works in the collection at the U.S. Chamber of Commerce, Studley said mental change possible. I think that’s in- the Detroit Institute of Arts. his colleagues across the country often ask him credible. If any one of those elements wasn’t “Nobody wants to see their money go about Detroit and what the governor is doing. there … we wouldn’t be where we are.” anywhere else. We can think of plenty of “We are proving that Democrats and Re- things to do with that money,” Krawczak publicans can work together and rescue a Chris Gautz: (517) 403-4403, said. “But in the business community, most city that was careening toward a devastat- [email protected]. Twitter: @chrisgautz CDB Living In The D_New CD Magazine sized 10/6/2014 9:10 AM Page 1 20141020-SUPP--0009-NAT-CCI-CD_-- 10/14/2014 3:48 PM Page 1

FALL 2014 Page 9 SNAPSHOT THE GIVING PLEDGE NETWORK Billionaire buddies Gilbert, Buffett become fast friends over biz and beyond

BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS efriending billionaire investor Warren Buffett is something of a notch in the full-grain leather belts of America’s business elite. B Microsoft Founder Bill Gates has called Buffett’s advice invaluable to his career. Gates and Buffett are known to host dinner parties for the world’s wealthiest business types — usually to discuss philanthropy. The pair created the Giving Pledge in 2010, asking fellow billionaires to make a commitment to giving away at least half their wealth during their life or at death. Nearly 130 have taken the pledge. One of them was Quickens Loans Chair- man Dan Gilbert, who accepted the pledge in 2012 and, in turn, found a mentor in Buffett. The relationship between these prosperous pals blossomed when Buffett came to Detroit in November 2013 to kick off the Goldman Sachs 10,000 Small Businesses program, which Buffett co-chairs. The $20 million program trains entrepreneurs in major U.S. cities as a way to create economic growth. Gilbert became Buffett’s tour guide to De- troit. They cemented a friendship over a business transaction that played on Buffett’s AARON ECKELS Dan Gilbert (left) interviews Warren Buffett during the Detroit Homecoming. The relationship love of collegiate sports — he’s a well- between the two began when Gilbert accepted the Giving Pledge in 2010. known University of Nebraska fan — and Gilbert’s knowledge of basketball as the on stage at the Detroit Homecoming, which ness, both men fell into a laughing fit over a owner of the NBA’s Cleveland Cavaliers. Crain’s convened. The mutual admiration practical joke pulled on Quicken Loans em- Together, they launched a $1 billion was transparent, and the two men compli- ployees on April Fools’ Day this year. Gilbert bracket challenge for anyone that could pick mented each other at various turns — one assembled much of his Quicken management the winner of every NCAA March Madness for his wisdom, the other for his investment team to inform them that Buffett’s Berkshire tournament game correctly. into a troubled city. Hathaway had acquired the company, which Gilbert’s Quicken Loans offered the mon- Gilbert suggested that Buffett help bring Buffett backed up in a video call. ey, and Buffett’s Berkshire Hathaway in- the annual meeting of The Giving Pledge to “I tried to buy Dan’s (business) on April sured the prize. Odds of winning were esti- Detroit so the 127 members who have agreed 1st, but forgot he had his fingers crossed,” mated at 1 in 9 quintillion. No one won the to give away the majority of their wealth can Buffett said. see what is happening and get involved. grand prize, but Gilbert and Buffett did seal Gilbert rebutted, “But on April 2nd, I called a business deal. Quicken paid an estimated “I’m just taking a shot here,” Gilbert said. you back and you didn’t answer the phone.” $10 million for the Berkshire insurance. “When you take a shot, it usually hap- Quicken, in turn, collected thousands of pens, Dan,” Buffett responded. “I go along with whatever he (Gilbert) sales leads from participants for its mort- But it was backstage in an interview with comes up with, and so far I haven’t gone to gage originating business. Crain’s where the admiration melted into jail,” Buffett said. Gilbert and Buffett continued to spend the juvenile camaraderie more common more time together throughout the year. among boyhood friends than billionaires. Dustin Walsh: (313) 446-6042, In September, Gilbert interviewed Buffett When asked about buying a Detroit busi- [email protected]. Twitter: @dustinpwalsh CDB Living In The D_New CD Magazine sized 10/6/2014 3:06 PM Page 1

Ford Motor Company Fund and Community Services builds communities through volunteerism and partnerships with nonproﬁt organizations to advance driving safety, education and community life.

www.community.ford.com

At Ford, we believe the arts have the ability to transform, educate and inspire. We’re proud to continue our support for Detroit Arts & Cultural institutions and provide programing to encourage young artists. 20141020-SUPP--0011-NAT-CCI-CD_-- 10/14/2014 3:51 PM Page 1

FALL 2014 Page 11 FALL 2006 ESSAY DAN DOCTOROFF Taking the long view How Harlem’s rebirth can happen in Detroit, given time etroit is having a moment. Things began to change when local resi- For all the rhetoric around immigration, stud- With bankruptcy hopefully dents took action on a modest scale. One or- ies consistently show immigrants generate soon in the rearview mirror, I ganization started by focusing on a single more revenue than they cost. can’t open a newspaper or check blighted street, negotiating with the city to Perhaps Michigan needs an Urban Home- D my Twitter feed without seeing turn over control of apartment buildings to stead Act that encourages new Americans to another hopeful story of the city’s rebirth — tenants who formed cooperative associa- purchase vacant homes in Detroit and set whether it’s a family moving to one of the tions. Over time, that one street came back them on the path to becoming contributors city’s struggling neighborhoods to renovate an to life — then another, then another — cre- to the city’s recovery. abandoned home or a new small business ating a ripple effect that spread across the The third lesson is that Detroit can’t go it opening up in the West Village. Having grown neighborhood. alone. For all the neighborhood-specific up right outside of Detroit, I can’t remember a An organization called Focus: Hope is de- community work that contributed to moment of greater excitement or opportunity. ploying a similar model in Detroit, empower- Harlem’s rebirth, it couldn’t have happened But one of my most important takeaways ing communities to participate in local deci- without strong support from the rest of New from my tenure as New York City’s deputy sion-making. Mayor Mike Duggan’s York City — whether in the form of billions mayor for economic development is that commitment to install 50,000 new streetlights of dollars in housing aid supporting tens of “moments” pass. What counts is using those is another example of how relatively modest thousands of units of affordable housing, or moments as opportunities to create struc- investments can produce outsized results. simply because the city’s economic rise over tural and self-perpetuating change. The second lesson is to value diversity. Be- the past 25 years has contributed to This is crucial for Detroit. Today, many of tween 1940 and 1990, Central Harlem was Harlem’s success as well. the exciting investments we’re seeing are more than 90 percent African-American. To- The same holds true for Detroit. Detroit speculative. Homeowners are taking paper day, as the neighborhood has grown, increased and the state of Michigan will rise or fall to- losses on their renovations on the hope that diversity of background, ethnicity and income gether, and public policy must reflect that the real estate market will improve; entrepre- contributes to Harlem’s vibrancy. Detroit, too, unavoidable truth. neurs are losing money on their businesses must attract a greater diversity of residents. Es- The fourth lesson is that rebuilding takes while they wait for more customers to arrive. tablishing pro-immigration policies is key. patience. Creating lasting structural change The optimism is real, but speculation is One of New York’s great strengths has been not a sustainable model. our steady stream of immigrants, bringing doesn’t happen in a year or an election cycle; At the Detroit Homecoming, I discussed with them an energy, urgency and ingenuity. it’s measured in decades and generations. the rebirth of one of New York’s most his- All the media attention on Detroit’s re- torically significant neighborhoods, Harlem. covery is a wonderful thing, but it’s not There are very big differences between De- without a downside. The news cycle moves troit and Harlem. Harlem is a neighbor- much faster than recovery. How long will hood, while Detroit is a major city with its reporters keep writing the feel-good stories own government. Detroit is a manufactur- before sentiment turns and they start writing center, which Harlem never was. Still, ing that the city missed its moment? At there are enough similarities to make the some point, investing in Detroit will no comparison instructive as Detroit looks to longer be the fashionable thing to do. That’s its post-bankruptcy future. why it’s critical to take the long view. From its highs in the early 1950s to its low The steps to building a great neighbor- point in the 1980s, Central Harlem’s popula- hood or city aren’t glamorous or headline- tion plummeted by 60 percent. In 1980, just 5 grabbing. But by thinking small, embracing percent of residents had a college degree, and diversity, working hand-in-hand with the 40 percent were living below the poverty line. state and taking the long view, I am extremely confident that all the pieces of a suc- Today, though, Harlem is on the rise. AARON ECKELS There are four major lessons we can learn cessful and sustainable recovery are at hand. from Harlem’s rebirth. The optimism is The first lesson is to think small. In the Dan Doctoroff is CEO of Bloomberg LP. A ’70s, the federal government provided more real,but speculation Michigan native, he served as New York City’s than $100 million (about $1 billion in to- deputy mayor for economic development from day’s dollars), spread across a huge number is not a sustainable 2002-2008. Follow Dan on Twitter @Dan- of programs. It flopped. model. Doctoroff. 20141020-SUPP--0012,0013-NAT-CCI-CD_-- 10/14/2014 3:49 PM Page 1

Page 12 FALL 2014 Billion-d Gilbert quick to the punch; Ilitch opts for slow, hold

BY BILL SHEA AND DUSTIN WALSH CRAIN’S DETROIT BUSINESS

uge swaths of Detroit are getting an extreme makeover courtesy of Dan Gilbert and the Ilitch family. And as divided as their H geographical areas are — Ilitch in an entertainment district centered near Woodward Avenue and I-75, Gilbert in downtown — so are their styles. Gilbert has been fast and open with his wallet, often making media announce- ments about his purchases. Meanwhile, the Ilitches quietly and gradually acquired parcels, and then sat on them until the un- veiling of the vision for the Ilitch-led arena district this summer. The differences in style are due, at least in part, to the nature of the projects. Gilbert’s purchases are independent of each other, although they are concentrated in a relatively small geographic area. But if the Ilitch family had announced it was purchasing property for such a large- scale entertainment district years ago, prices likely would have escalated even further than they already did. Does the fact that so many properties are held by so few help or hurt Detroit? So far, real estate types think it’s helping to attract other investment rather than prompt bidding wars. Here’s a look at the two billionaires and their development philosophies: Gilbert’s sphere of influence Welcome to Gilbertville — the unofficial name of Detroit’s central business district. Gilbert, chairman of Quicken Loans Inc., owns more than 60 properties — buildings and parking structures — totaling more than 9 million square feet in De- 20141020-SUPP--0012,0013-NAT-CCI-CD_-- 10/14/2014 3:50 PM Page 2

FALL 2014 Page 13 -dollar philosophies

DAN GILBERT DOWNTOWN HOLDINGS

Pictured on map 19. Chrysler House, 719 Griswold St. Parking garages and lots (not pictured) 20. Cary Building Lofts, 1301 Broadway St. Ⅲ One Woodward Avenue Lot, 1 Woodward Ave. 1. Madison Building, 1555 Broadway St. 21. First National Building, 660 Woodward Ave. 2. 1550 Woodward Ave. 22. 630 Woodward Ave. Ⅲ Vinton Lot, 600 Woodward Ave. 3. Arts League of Michigan building, 1528 23. 620 Woodward Ave. Ⅲ First National Garage, 660 Woodward Ave. Woodward Ave. 24. Chase Tower, 611 Woodward Ave. Ⅲ 1001 Woodward Garage, 1001 Woodward Ave. 4. Lane Bryant Building, 1520 Woodward Ave. 25. Vinton Building, 600 Woodward Ave. Ⅲ Randolph Lot, 748 Randolph St. 5. Wright-Kay Building, 1500 Woodward Ave. 26. One Woodward Avenue, 1 Woodward Ave. Ⅲ Lafayette Lot, 422 E. Lafayette St. 6. 1525 Broadway St. Ⅲ Financial District Garage, 730 Shelby St. 7. Small Plates building, 1521 Broadway St. Ⅲ Brush Street Garage, 1001 Brush St. 8. 1505 Woodward Ave. Ⅲ Fort Street Garage, 419 E. Fort St. 9. 1412 Woodward Ave. Not pictured on map Ⅲ Vacant lot, 126 Monroe St. 10. Eastern Wig & Hair Co. building, 1400 Wood- Ⅲ 1322 Broadway St. Ⅲ ward Ave. New Valet Garage, 500 Macomb St. Ⅲ 1326 Broadway St. Ⅲ 2 Detroit Center Parking Garage, 160 E. 11. 45 W. Grand River Ave. Ⅲ 12. Industry Sound Studios building, 1250 Gris- 1332 Broadway St. Congress St. wold St. Ⅲ Serman’s Building, 1238 Randolph St. Ⅲ Vacant lot, 28 W. Grand River Ave. 13. Detroit Institute of Music, 1265 Griswold St. Ⅲ 1401 Rosa Parks Blvd. Ⅲ Madison Building Lot, 1545 Broadway St. 14. 1215 Griswold St. Ⅲ Greektown Casino-Hotel, 555 E. Lafayette St. Ⅲ Greektown Casino-Hotel Garage, 1200 St. 15. 1217 Woodward Ave. Ⅲ Detroit Media Partnership Building, 615 W. Antoine St. 16. 1201 Woodward Ave. Lafayette St. Ⅲ Federal Reserve Lot, 160 W. Fort St. 17. 119 State St. Ⅲ Globe Tobacco Co. Building, 407 E. Fort St. 18. 1001 Woodward Ave. Ⅲ Federal Reserve Building, 160 W. Fort St.

troit. He has invested more than $1.3 bil- moved Quicken from offices in Livonia, ings were vacant in the central business lion buying and renovating property in the Farmington Hills and Troy to Campus district. That figure is now about 13. city, mostly in the central business district. Martius. Notable acquisitions include the Madi- Gilbert’s appetite for Detroit real estate The contrast is stark since Gilbert’s ar- has been insatiable since 2010 — when he rival. In the early 1990s, nearly 50 build- SEE PAGE 16 DB magazine spread_CDB magazine spread 10/6/2014 4:05 PM Page 1

THERE’S MORE THAN EVER TO LIKE ABOUT DETROIT. The General Motors Foundation proudly supports the efforts of the Detroit Homecoming as it showcases the beauty and promise of Detroit. Together, we can reimagine and rejuvenate the Motor City.

gm.com/gmfoundation DB magazine spread_CDB magazine spread 10/6/2014 4:05 PM Page 1

gm.com/gmfoundation 20141020-SUPP--0016,0017-NAT-CCI-CD_-- 10/14/2014 4:47 PM Page 1

Page 16 FALL 2014

FROM PAGE 13 son Building, $1.4 million; Chrysler House (formerly Dime Building), $15.4 million; 1001 Woodward Building, approximately $30 million; the One Wood- ward Building, $8.5 million; and the First National Building, $8.1 million. Gilbert also owns the former Hudson’s site, and has hired New York-based Shop Ar- chitects PC and Detroit-based Hamilton An- derson Associates to develop a mixed-use plan for it. In May 2013, Gilbert’s Athens Acquisi- tion LLC subsidiary, Rock Gaming LLC, acquired Greektown Casi- no-Hotel. But the majority of Gilbert’s non-parking and casino portfolio is retail and office space — about 90 percent office Gilbert space and 10 percent retail. His plan has been to attract more companies downtown. Ten- ants include Twitter, Microsoft Ventures, I expec¶ my bank §o Google for Entrepreneurs and Detroit : Labs. The buying spree is designed to connect lower Woodward near Hart Plaza with Know my business, Grand Circus Park and everything in between by the end of 2015. not just my balance. A lot of vacant down- Some business owners expect more than just an account. town office space is They expect their bank to understand their business. composed of older Class B and C buildings with- When it’s time, come to Comerica. And discover why we’re out modern amenities the leading bank for business,* with more awards for people are looking for, excellence** than any other bank. said Erik Tungate, Oak Tungate Park city manager. He worked previously for the Detroit Economic Growth Corp., the Michigan Economic Development Corp. RAISE YOUR EXPECTATIONS. and the Wayne County Economic Devel- opment Growth Engine. Those properties often have old infra- ® structure, like elevators that can prove Business Wealth Management Personal costly to maintain or replace. Gilbert’s strategy of buying and upgrading solves comerica.com such problems, and he expects an office MEMBER FDIC. EQUAL OPPORTUNITY LENDER. building boom because of it. *Based on commercial and industrial loans as a percentage of total assets. Data provided by Thomson Reuters Bank Insight, December 2013. **Greenwich Associates is a leading “It’s taken that outdated inventory off worldwide strategic consulting and research ﬁrm specializing in ﬁnancial services. For Middle Market, the Greenwich Awards are based on nearly 14,000 market research interviews with U.S. companies with sales revenues of $10 million-$500 million, and honorees were recognized by their customers as providing superior quality of products, the market. It’s going to lead the biggest service and coverage. Of more than 750 U.S. banks evaluated, Comerica ranked within the top 5 percent of banks with “distinctive quality” and “performing at a differentiated jaunt of Class A construction we’ve had in level relative to peers.” For Small Business, the Greenwich Awards are based on more than 17,000 market research interviews with U.S. companies with annual revenues of $1 50 to 70 years,” said Tungate, who lives in million-$10 million, and honorees were recognized by their customers as providing superior quality of products, service and coverage. Of more than 750 U.S. banks evaluated, Comerica ranked within the top 6 percent of small business banks with “distinctive quality” and “performing at a differentiated level relative to peers.” CBP-4151 08/14 Brush Park near the planned Ilitch arena development. 20141020-SUPP--0016,0017-NAT-CCI-CD_-- 10/13/2014 5:09 PM Page 2

FALL 2014 Page 17 THE ILITCHES AREAS OF INVESTMENT

PIERRETTE DAGG/CDB The Ilitch sphere of influence The Ilitch family — of the Little Caesars pizza chain along with two sports teams and a casino in Detroit — for decades has employed a mixture of development strategies. DAVID HALL One strategy is to buy a property and A panorama of the site for the new Detroit Red Wings arena project as it looked in July. renovate it. The family did that in 1988 which opened in 2000 — but also amass- ing happens at that capacity they’re with a $12 million refur- ing parcels north of that area for the future proposing, it’s an absolute game changer bishment of the Fox The- hockey arena site. for the city of Detroit, no doubt about it,” atre, which became the It’s estimated that Olympia spent nearly said Erik Tungate, Oak Park’s city manag- headquarters of the Ilitch $50 million on land at Woodward Avenue er, who worked for the Detroit Economic business empire. and I-75 for the footprint of the $450 million Growth Corp. and other economic devel- The other strategy is to arena. Some of the land was vacant and be- opment groups. One downfall of the quiet- buy land or properties came surface parking lots, as was done with but-slow style is that it “stymies momen- for future development. land behind the Fox Theatre. But, other tum you could have gathered on the The Ilitches formed parcels have structures that will be razed. in-between projects,” he said Ilitch Olympia Development of The arena project is the centerpiece of a But overall, Detroit is fortunate to have the Michigan in 1996 as the real estate arm of 45-block Olympia plan of $200 million in Ilitches and Dan Gilbert spending vast sums, their business holdings. Their son, Chris, new housing, retail, entertainment and of- he said. “(Many cities) don’t have billionaires that put their heart and soul into the city even leads many of the projects, including the fice space intended to become five new when it may be to their economic disadvan- new Red Wings hockey arena slated to neighborhoods that stitch downtown and tage sometimes,” Tungate said. open in 2017. Midtown — an area some say has been ar- For nearly two decades Olympia has tificially separated because of land pur- Bill Shea: (313) 446-1626, been acquiring not only land for the site of chases by Olympia and by speculators [email protected]. Twitter: @bill_shea19. what’s now Comerica Park — home of the seeking a payday from Olympia. Dustin Walsh: (313) 446-6042, Ilitch-owned Detroit Tigers near the Fox, “If the development that they’re propos- [email protected]. Twitter: @dustinpwalsh 20141020-SUPP--0018-NAT-CCI-CD_-- 10/13/2014 5:05 PM Page 1

Page 18 FALL 2014 REAL ESTATE BUILDING MOMENTUM Building equity It’s getting easier to finance commercial real estate in Detroit

BY KIRK PINHO town Development Authority and others. CRAIN’S DETROIT BUSINESS HOW THEY Earlier this year, the Detroit Economic ight long, grueling years. Growth Corp. received approval from the That’s how long it’s been since WERE FUNDED DDA to negotiate a development agreement one of the most complicated rede- Where money came from for The Griswold apartment development. velopment financing structures in for Woodward Garden Roxbury plans on using only three funding Motown’s history was cobbled to- Block, Wings arena and sources for the $22 million development, E Book Cadillac: which would have 80 units atop a 10-story gether for the $180 million renovation of the Westin Book Cadillac Detroit on Pages 22, 23, 25 parking garage and retail building at Gris- Washington Boulevard at Michigan Avenue. wold Street and Michigan Avenue. Involving 17 layers of financing, the deal as just a few years ago questions were rampant Increased willingness to finance Motor was so complex that one real estate financing about whether enough demand existed. City redevelopment efforts is welcome news expert at the time said it could have been the “People talk about closing and financing to Joseph Kopietz, a subject of a master’s degree thesis. gaps more so than ‘it’s just not possible’ or that member in the Detroit But the Book Cadillac wasn’t an anomaly. there won’t be demand,” said Hosey, who office of Clark Hill PLC, Labyrinthine financing plans are what it has worked on the financing for the $53 million re- who advised the College taken to get projects done in the Motor City development of the 35-story Broderick Tower for Creative Studies on fi- — even in the resurging downtown and into a 127-unit apartment building, another nancing for the A. Alfred Midtown districts. complex financing project, among others. Taubman Center for De- It took George Stewart and Michael Byrd 15 “Even if it’s nine layers (of financing), it’s sign Education project, years and eight funding sources to complete nine straight-forward and easy to replicate among many others. the overhaul of the Wood- layers so we can pass it along to the next Kopietz But still, it’s not like ward Garden block of project,” he said. lenders are frothing at the Woodward Avenue into a Part of what is helping is that average mouth to take what might still be a gamble on $44 million mixed-use de- rental rates are slowly but steadily creeping Detroit projects, he said. It remains a complex velopment with multifami- toward the $2 per square foot levels, which chess game, oftentimes involving many lenders ly residential, retail and of- makes traditional lenders more willing to fi- and tax incentives, such as the U.S. Depart- fice space in Midtown. nance projects. ment of Housing and Urban Development’s Richard Karp is rede- “After we clear that mark and have been 221(d)4 Program, Michigan Strategic Fund’s veloping three Capitol doing that for a number of years, I think Community Revitalization Program, state Stewart Park buildings, and the fi- lenders will say it wasn’t a fluke, that there brownfield tax credits and tax credits at the nancing for just one of the projects involves actually is a strong mar- state and federal level for historic preservation. 11 different capital stacks. ket for this product,” said “Because of various factors, having seven But the market is starting to shift. These James Van Dyke, vice layers of financing can sometimes be more days — post-recession, post-Kwame, soon- president of development complex than 12,” he said. “Each type of fi- to-be post-bankruptcy — the real estate for the Detroit-based nancing has its own complexity, and we still community is noticing smoother paths to Roxbury Group, which are not at a state here in Detroit, nor in securing financing, particularly for in-de- redeveloped the David many other major markets, where financing mand multifamily housing in the booming Whitney Building, the of significant projects is getting any easier.” downtown and Midtown areas. former Globe Trading Yet all told, Kopietz and others remain Richard Hosey III, a for- VanDyke Co. building for the optimistic. mer senior vice president Michigan Department of “We are going to continue to get some for Bank of America who Natural Resources, as well as a host of other questioning and scrutiny from lenders and is now the owner of De- projects. equity partners, but things have been im- troit-based Hosey Devel- The David Whitney Building, which is proving. What people are seeing is the suc- opment LLC, said there is scheduled to be completed this year after a cesses in Detroit that we’ve had here re- a sense among developers two-year conversion into 108 multifamily cently, and that’s good for the market,” he and lenders that most re- units and a 135-room Aloft boutique hotel, said. development projects are is an $82.5 million project involving funding Kirk Pinho: (313) 446-0412, Hosey financially feasible, where- from the state, Bank of America, the Down- [email protected]. Twitter: @kirkpinhoCDB CDB Living In The D_New CD Magazine sized 10/3/2014 1:22 PM Page 1

Committed to the enduring spirit of Detroit, MERIDIAN HEALTH PLAN is proud to support the revitalization of our city.

www.mhplan.com DB magazine spread_CDB magazine spread 10/3/2014 1:36 PM Page 1

Moving our Corporate DRAWING PROFESSIONALS Headquarters to the DOWNTOWN heart of Downtown Our workforce has grown 500% since moving downtown! Learn more about how Detroit in 2007, you can grow with us at www.mhplan.com. Meridian is honored to be part of our city’s PROVIDING THE RENAISSANCE HIGHEST QUALITY . CARE, ALWAYS Meridian Health Plan of Michigan is the number one Medicaid HMO in Michigan according to NCQA’s Medicaid Health Insurance Plan Rankings 2014–2015.

STRENGTHENING OUR COMMUNITY Hands-on engagement with local causes through sponsorships and employee volunteering DB magazine spread_CDB magazine spread 10/3/2014 1:36 PM Page 1

STRENGTHENING OUR COMMUNITY Hands-on engagement with local causes through sponsorships and employee volunteering 20141020-SUPP--0022,0023-NAT-CCI-CD_-- 10/13/2014 5:07 PM Page 1

Page 22 FALL 2014 REAL ESTATE HOW THE WOODWARD GARDEN BLOCK WAS FUNDED

DAVID HALL/CDB Loans $27 million Equity/grants $3.72 million

Ⅲ U.S. Department of Housing and Urban Development: $27 million* Ⅲ Detroit Economic Growth Corp.: $100,000 DEGC Smart Buildings grant $121,000 DEGC Creative Corridor Incentive Fund Tax credits $18.5 million Ⅲ Private equity: $3.5 million Ⅲ U.S. Department of Treasury New Market tax credits: $10 million** Ⅲ State brownfield tax credits: $6 million Ⅲ State historic tax credits: $2.5 million Grand total $49.2 million

* $19 million from the Section 108 Loan Guarantee Program; $8 million from 221(d)(4) program. ** Provided $4 million in equity.

Together, We Can CELEBRATE DETROIT.

PRIDE. IT’S THAT FEELING YOU GET WHEN YOU’RE PART OF SOMETHING GREAT. For nearly 100 years, Henry Ford Health System has been part of this amazing city. We’ve helped bring world-class health care to southeast Michigan and the patients and members we’re privileged to serve every day at Henry Ford and HAP. We’ve also brought the world to Detroit through our leadership in research, innovation and quality care. We’re proud to continue to invest in our hometown and look forward to what the next 100 years will bring.

To learn more, visit henryford.com and hap.org. Follow us on Facebook, Twitter and Instagram. 20141020-SUPP--0022,0023-NAT-CCI-CD_-- 10/13/2014 5:07 PM Page 2

FALL 2014 Page 23 FALL 2006 REAL ESTATE HOW THE NEW RED WINGS ARENA WILL BE FUNDED

Bonds* $450 million

Ⅲ Michigan Strategic Fund-issued Series A bonds: $250 million. Backed by property taxes already captured by the Detroit Development Authority Ⅲ MSF-backed Series B bonds: $200 million. Backed by the $11.5 million Olympia Development has agreed to pay the DDA for bond retirement. How the bonds will be repaid: The Ilitches, through Olympia, will pay $200 million of the bond debt. Detroit’s DDA, via its property tax capture ability, will pay back $250 million of the bonds. Equity $85 million

Ⅲ Cash on hand in the DDA’s tax-capture account: $35 million Ⅲ Land acquisition costs paid by Olympia Development: $50 million Grand total $535 million

*Anything beyond $450 million must be paid by the Ilitches. The ancillary development — bars, restaurants, stores, apartments, townhomes — is at least $200 million, and will be privately financed by the Ilitches and their third-party business partners. The Ilitches are obligated to pay any arena costs beyond the $450 million.

Building Detroit’s Future Together

Why does Honigman believe so deeply in Detroit?

For 66 years, we have proudly been at the heart of Detroit’s greatness, resilience and resurgence as our clients turn to us for sound legal and business counsel. They are the deeply committed men and women ready to take the creative risks, launch new ventures, and realize the dreams on which a great city depends.

Let us all work together on a shared vision for the Detroit of the future.

WWW.HONIGMAN.COM

CR CDB Living In The D_New CD Magazine sized 9/30/2014 1:22 PM Page 1

“WHAT’S DTE ENERGY DOING FOR MICHIGAN BUSINESS?”

Last year alone, DTE spent $809 million with Michigan-based suppliers, far exceeding our target of $625 million. And as a key partner in the Pure Michigan Business Connect Initiative, we’ve spent more than $1.6 billion with Michigan businesses in the last two years. These dollars don’t just support business, they support jobs in our state and help people and communities thrive. 20141020-SUPP--0018,0022,0023,0025-NAT-CCI-CD_-- 10/9/2014 5:22 PM Page 4

FALL 2014 Page 25 FALL 2006 REAL ESTATE HOW THE WESTIN BOOK CADILLAC REHAB WAS FUNDED Loans $103 million Ⅲ iStar Financial Inc. first mortgage: $48 million Remediation loan: $6.7 million Ⅲ Section 108 HUD loan: $18 million (includes Ⅲ Michigan State Housing Development $8.25 million Michigan Magnet Fund loan/New Authority loan: $6 million Markets Tax credits) Ⅲ National City New Markets tax credits loan*: Ⅲ Detroit General Retirement System: $9 million $1 million Ⅲ Downtown Development Authority Ⅲ National City Bank condo loan: $6 million (includes $1 million Wayne County grant) Ⅲ Lower Woodward Housing Fund gap loan: Development loan: $5.8 million $2.5 million Tax credits $33.1 million Ⅲ State of Michigan historic tax credits: $4.6 Ⅲ Single-business/brownfield tax credits: million (includes Shorebank bridge loan) Hotel: $7.4 million Ⅲ Federal historic tax credits: $20 million Condos: $1.1 million Equity $43 million Ⅲ Developer equity: $15 million (includes $12.5 Ⅲ Conservation easement equity (National million loan from First Independence National City Community Development Corp.): Bank) $28 million

Grand total $179.1 million

*Converts to equity Updates since this 2006 deal came together: MSHDA became the senior lender on the condo part of the deal after PNC Bank (which acquired National City in 2008) and the Lower Woodward Housing Fund were repaid construction loans. Pension fund money also ended up in the deal; First Independence equity was backed by the Detroit Police & Fire Retirement System. The Carpenters Pension Fund was not an original lender, but committed $17.2 million to the project for letters of credit. This arrangement later led to a lawsuit (still ongoing) as an affiliate of the carpenters fund struck a deal to buy the primary iStar loan. CDB Living In The D_New CD Magazine sized 10/3/2014 2:09 PM Page 1

The Richard and Jane Manoogian Foundation proudly supports the Detroit Homecoming and salutes the efforts of this significant gathering to help shape the future of our City of Detroit. 20141020-SUPP--0027-NAT-CCI-CD_-- 10/9/2014 3:15 PM Page 1

FALL 2014 Page 27 REBUILDING THE D HAMILTON ANDERSON ASSOCIATES A lasting legacy Architectural firm makes its mark yesterday, tomorrow

BY MATT LEWIS SPECIAL TO CRAIN’S DETROIT BUSINESS or 20 years, Hamilton Anderson As- sociates has been changing the face of Detroit. Walked through the Wayne State F University Welcome Center? That’s architect Rainy Hamilton Jr. and his team. Strolled down the wide sidewalks of Wash- ington Boulevard or past the Wayne County Port Authority building? Hamilton Ander- son Associates again. Now the firm is designing two of the city’s most anticipated projects: Orleans Landing, a $61 million 200-unit neighborhood development along the Detroit riverfront; and the redevelopment of the famed Hudson’s De- partment Store site in partnership with New York’s SHoP Architects PC. “No one knows the urban environment in Detroit better than HAA,” said Hamilton, 58, president and co-owner of HAA. “We’ve lived it, walked it, cried over it. We’ve been GLENN TRIEST here 20 years; we didn’t leave and come Rainy Hamilton Jr. and his team at Hamilton Anderson Associates is designing Orleans Landing and back. Now it’s fashionable to be a Detroiter. the redevelopment of the Hudson’s Department Store site. It’s cool and exciting.” That connection to Detroit is what con- a year in revenue and still makes its home in Drew Middle School, where he first studied vinced St. Louis-based developer McCorma- the building where it started — although it drafting. He went on to Cass Technical High ck Baron Salazar to hire HAA to design Or- did take over four other suites to make School, where he studied civil construction leans Landing, its first Detroit project. room for its 60-plus employees. and technology, then to the School of Archi- “We’re not from Detroit; we don’t have HAA’s offices feel extremely current, fea- tecture at the University of Detroit Mercy. those direct relationships with permitting, turing lofted ceilings and exposed ductwork “Being a Detroiter, my focus has always zoning and plan review, but Hamilton An- and mechanicals, the kind of design popular been how I can contribute to the revitaliza- derson brings that,” said Jack Hambene, se- in today’s lofts and live/work spaces. How- tion of Detroit,” Hamilton said. nior vice president and developer at McCor- ever, the design dates back to the early 1990s Anderson has been involved in any num- mack Baron Salzar. “Orleans Landing will when Hamilton developed a plan for reno- ber of the city’s plans for revitalization. In have a catalytic and transformational effect. vating the late 19th century building while 1979, he co-authored a plan for the river- By doing it with a high-quality urban de- an architect at Smith Group. front called the “Linked Riverfront Parks sign, we think that this will be a wonderful It’s appropriate that Hamilton got a start Project,” which proposed many of the ele- kickoff to a long-term transformation of the in the heart of Detroit because the city’s ments of the walkable, bikeable riverfront riverfront.” schools and neighborhoods have had a pro- enjoyed today. In 1995, he created a master HAA got its start 20 years ago when found influence on his life and career. He plan for Belle Isle on behalf of the parks de- Hamilton and landscape architect Kent An- found his love for architecture at Charles partment. Few elements of the plan were re- derson rented a 1,000-square-foot office on alized, but when the state took control of the the edge of downtown in Harmonie Park. “We’ve been here 20 park earlier this year, that changed. Now the Over the past two decades, the partners Department of Natural Resources is using it. have grown the architecture and planning years; we didn’t leave “When the governor’s office learned there firm into one of the country’s largest was a master plan, they called us and had us African-American-owned practices. HAA and come back.” present it,” Hamilton said. “It’s a good takes in between $8 million and $12 million — RAINY HAMILTON JR. — plan.” 20141020-SUPP--0028-NAT-CCI-CD_-- 10/9/2014 3:14 PM Page 1

Page 28 FALL 2014 FALL 2006 REBUILDING THE D WHITE CONSTRUCTION Building on 25 years White Construction a key player in arena project, M-1 Rail

BY STACY COWLEY SPECIAL TO CRAIN’S DETROIT BUSINESS he Detroit that W. Bernard White envisions contains a state-of-the- art sports complex, a streetcar line that’s on a roll at last, and a newly T constructed, 20-story office sky- scraper to house some of the city’s growing workforce. The firm he founded 25 years ago, White Construction, is a key player in the first two projects, the Red Wings arena and the 20 stations slated to line the M-1 Rail route. The third is his dream project, the kind of commission he fantasizes about working on as a capstone to his career. “I’m extremely confident that the city is going to do well over the next five to 10 years,” he said. “There’s so much new in- LARRY PEPLIN vestment and interest, which opens up all W. Bernard White founded White Construction 25 years ago. kinds of opportunities.” One early customer, Roberta Sanders of the try. Currently his 24-person firm posts White Construction broke ground last New Center Community Health Services, re- around $28 million a year in revenue. month on one of its largest ventures to date: calls how her organization and White’s grew “That was very challenging,” White said. The new Red Wings arena, a $450 million, up together. Sanders, the mental health “When you start losing your best and key 20,000-seat arena tentatively scheduled to agency’s former executive director, hired people, it’s really hard to build your firm open in 2016. The firm is teaming up with White’s fledgling company in the early 1990s back up.” two frequent partners, Southfield-based to work on the gut renovation of a decaying The tide has turned in the past few years, Barton Malow Co. and Indianapolis-based building — the first of many joint projects. and White Construction is growing again. Hunt Construction Group, as the project’s “What impressed me the most is how White expects to bring on another five em- general contractor. The major construction they handle corrections,” Sanders said. “It’s ployees over the next year. work will begin in March. construction; things sometimes go wrong. He’s also thinking about the next genera- For White, 59, it’s the latest in a series of They were always immediately focused on tion, both of his own business and others in jobs that have allowed him to help shape ‘how do we make this right?’ They’re very, Detroit. He looks for opportunities to sup- Detroit’s infrastructure. Everywhere he very interested in customer satisfaction.” port other community businesses, especially turns in the city, he sees projects his compa- White said he’s happiest being a midsize those led by African-Americans. ny has worked on: Campus Martius, Detroit firm with annual revenue of $40 million to “I think the mainstream community has RiverWalk, Detroit Public Safety headquar- $50 million. That’s the size White Construc- provided and continues to provide opportuni- ters, Eastern Market. tion was during its peak years, from the ties for black-owned businesses like mine, but White, a Detroit native and Lawrence mid-’90s to around 2005. Then the reces- I also think we need to support each other Technological University graduate, started sion hit, decimating the construction indus- more,” he said. “I have my business accounts the company in 1989 after putting himself at a black-owned bank. We buy our cars at through college working at the Detroit Wa- “I’m extremely black-owned dealerships, and I try to use ter & Sewerage Department. black-owned subcontractors in my businesses He decided to go into business for him- confident that the as well as maintaining a diverse workforce.” self, he said, “because I didn’t want to wake White is also in the process of setting up up and be 60 and say I wish I’d given it a city is going to do an educational foundation to provide schol- shot.” His firm has become a family busi- well over the next five arships and grants for black students. “I ness: His son Donovan, a 13-year company think there’s three phases in your life: learn, veteran, is the deputy operations manager; to 10 years.” earn and give back,” he said. “I’m transi- his nephew, Milton Jennings, is the deputy tioning into the phase where I’d like to give business development manager. — W. BERNARD WHITE — back to people who need opportunities.” CDB Living In The D_New CD Magazine sized 9/17/2014 11:38 AM Page 1

fresh perspectives

We’re excited to help bring new ideas to the Detroit community. Welcome home. CDB Living In The D_New CD Magazine sized 9/30/2014 10:10 AM Page 1 20141020-SUPP--0031-NAT-CCI-CD_-- 10/9/2014 3:15 PM Page 1

FALL 2014 Page 31 FALL 2006 REBUILDING THE D PATRICK THOMPSON DESIGN Spaces to grow Thompson brings design eye to high-profile projects

BY AMY HAIMERL CRAIN’S DETROIT BUSINESS

he Kresge Court inside the De- troit Institute of Arts is perhaps one of the city’s most glamorous locales. It has always been so — T as evidenced by Bill Rauhauser’s photograph from the 1960s of a young woman smoking in the court, ropes of pearls draping around her and a coat set dashingly around her shoulders. It’s enough to make you want to light up. So when the DIA received a $268,500 grant last year to turn the court into the city’s “cultural living room,” skepticism ran rampant. How could the courtyard, which was originally outdoors and turned into a glassed-over atrium in the 1960s, evolve and still retain its sense of place? LARRY PEPLIN Enter Patrick Thompson Design, a De- In five years, Patrick Thompson’s interior design firm has grown from a spare bedroom to Midtown. troit interior design company that had only been open since 2009 and had recent- Fabulous Mac n’ Cheez in Midtown. one creating the spaces, though not always ly come through the Detroit Creative Cor- “Patrick delivered exactly what we need- with my hands.” ridor Center’s incubator program. ed: brutal honesty and a set of interesting The firm does just under $1 million a “We selected Patrick because his design ideas that weren’t just recycled versions of year in revenue. Most clients are local, but was kind of the perfect integration of an other spaces downtown,” said Damien Roc- Thompson is looking for interesting pro- indoor/outdoor space,” said Elliott Broom, chi, co-founder of Grand Circus. “We didn’t jects nationwide as well. vice president of museum operations. “It have the budget for (children’s) slides and “Detroit has many programs that foster was his brilliance to pull all of the elements flying foxes, so I particularly loved Patrick’s the growth and success of a business,” he together.” ‘residential theme’ idea to connect three said. “For me, it was Detroit Creative Corri- Those include a pergola in the middle of otherwise disconnected floors.” dor Center at the startup phase. Midtown the room that provides both an anchor and Thompson also knows construction. He (Detroit) Inc. helped me to find and move an outdoor sensibility. He used heavy worked as a carpenter in high school and into my office space. And then the big new Chesterfield couches that you would see in college and developed a love for building one is the Detroit Development Fund, which rich libraries, as well as white wire chairs staircases and other projects. Being around is helping me with my office expansion.” you’d find on a patio. In short, he captured architects and designers helped him appre- Thompson loves living and working in the spirit of the photograph but updated. ciate design elements and how they inte- Midtown near where other design business- As the city itself seeks to maintain its his- grated with what he was building. es have clustered. His dream building, how- tory and sense of place but also rehabilitate “That’s when it hit me that I want to be ever, is a bit farther down Woodward Av- its buildings, Thompson, 36, is becoming on the design end of this,” said Thompson, enue, a crumbling facade on the back side of the go-to interior designer. In five years, he who has degrees in historic preservation the Fox Theatre on West Elizabeth Street. has grown from one man in a spare bed- and interior design. “I wanted to be the “It’s kind of my dream space to design room into a team of five — looking to add and hopefully have my office,” said two more — in a recently expanded 1,500- Thompson, who grew up in Rochester. “I square-foot showroom in the Auburn “It was his brilliance feel like you can design a space on a 20th building in Midtown. floor with all glass and make it look beauti- Thompson’s name is attached to pro- to pull all of the ful and cool. That’s easy. jects for Skidmore Studios, Grand Circus elements together.” “But to find the tiny little hidden gem or Detroit and TechTown Detroit. And he is back office in a gas station and make that developing the space for Sweet Lorraine’s — DIA’s ELLIOTT BROOM — something special, that’s big.” 20141020-SUPP--0032-NAT-CCI-CD_-- 10/9/2014 3:15 PM Page 1

Page 32 FALL 2014 FALL 2006 REBUILDING THE D BARTON MALOW Help wanted Hiring Detroiters is job No. 1 for the Red Wings arena

BY VICKIE ELMER ued expansion of construction work SPECIAL TO CRAIN’S DETROIT BUSINESS in the city of Detroit,” Ivanikiw said. Barton Malow has been a part of annis Mitchell can barely keep up building Detroit since it was found- with all the calls from subcon- ed in 1924. It took its current name tractors and others eager to help in 1932 and was based in Detroit with construction of the $450 until it moved to a new Southfield million Detroit Red Wings arena. headquarters in 2001. The company D She leads Barton Malow’s efforts to recruit and qualify Detroit subcontractors built the Joe Louis Arena in 1979 and city residents to jobs on the Olympia and the Boll Family YMCA in 2005; Development of Michigan project. it expanded both wings of the De- Since midsummer, more than 1,000 con- troit Institute of Arts (in 1966 and tractors have expressed interest, and 1971). The company posted 2013 Mitchell is running like crazy to make sure revenue of about $1.1 billion. they meet qualifications to bid on demoli- Currently its team oversees con- tion, site work and construction tasks. struction of Wayne State Universi- “It’s challenging. There are only so many ty’s Biomedical Research Building, hours in the day,” she said. which is the tree-covered glass The company started considering how to building on Woodward Avenue, win the arena project two years ago and and Detroit Medical Center’s critical quickly realized it needed to expand its care tower for Children’s Hospital. reach into the Detroit subcontractor com- “Barton Malow has that intricate munity. Managers were “shocked” at how project management expertise,” said few of its 15,000 contractor firms had city of Ron Henry, chief facility and con- Detroit certification, said Alex Ivanikiw, a struction officer for Detroit Medical senior vice president and 25-year veteran of Center. “They keep all of our users of the Southfield-based construction manage- the space happy through the process.” ment company. That’s no small task on a tiny The number had dwindled when the campus where you need to manage economy hit the skids and contractors either needs of patients, visitors and doc- closed or did not renew their certification. tors. Yet a bigger problem is finding enough Mitchell, who joined Barton Malow GLENN TRIEST in 2013, is excited to be a part of the Dannis Mitchell is at the forefront of Barton Malow’s skilled labor for its construction sites. Bar- efforts to recruit Detroit subcontractors and residents for ton Malow and its partners — Detroit-based city’s future. She grew up in Detroit jobs with Olympia Development of Michigan’s Red Wings White Construction and Indianapolis-based and got interested in the construction arena construction project. Hunt Construction Group — are looking to field through a program at Renais- hire thousands of carpenters, electricians sance High School, which led her to most of her work has been in marketing, but and demolition workers to meet Olympia an internship then a job at Brinker Group, a she recently started seeking new challenges. Development’s ambitious goal that 51 per- Detroit-based construction company. When the job of outreach for the arena pro- cent of jobs and 30 percent of contracts are She has been in the field a decade, and ject came up, “of course, I jumped at it,” she to go to Detroit residents and Detroit busi- said. “I love to be out in the community.” nesses, respectively. She’s worked through many resources, “Our greatest limitation today is people,” “Clearly this is the from the Detroit City Council to a minority- said Ivanikiw. “We are rapidly approaching beginning of a supplier organization, to locate Detroit sub- a point where we are saying ‘no’ to new op- contractors. She’s even driven around indus- portunities.” continued expansion trial neighborhoods in the city and noted In particular the company, which employs promising companies to follow up with later. about 1,300 people, is “pretty stretched” for of construction work That outreach has brought in hundreds of estimators and project managers, electricians contractors, some of which she’s convinced and construction trades people. in the city of Detroit.” will end up with a long career working with “Clearly this is the beginning of a contin- — ALEX IVANIKIW — Barton Malow. CDB Living In The D_New CD Magazine sized 10/6/2014 3:08 PM Page 1

Ford Motor Company Fund and Community Services builds communities through volunteerism and partnerships with nonproﬁt organizations to advance driving safety, education and community life.

Ford is proud to lend a helping hand to feed Detroiters in need. We’ve put 13 Ford Transit Connect Mobile Food Pantries on the road which have helped us feed 400,000 people this year, and 3,000 children have been fed through our Meet Up & Eat Up partnership with the Detroit Lions and United Way this summer.

www.community.ford.com CDB Living In The D_New CD Magazine sized 10/2/2014 2:16 PM Page 1 R ER E K 6 16 1 LK L 0 20 A f o o WA W - ss Y- Y a la l E C C SE S , e, e R nc n OR O ie i c D D Sc l A a ia i c NI N oc o S O S f of o RO R e R g eg e ER E l ll H SH S Co C

Michigan State University is connected to Metropolitan Detroit

through its many alumni, MSU Extension programs, arts and

economic development initiatives, and partnerships in teaching

and education. But what Spartans love most about the city are

Detroiters like Sherronia Dorsey-Walker, a student currently studying

social work at MSU thanks to the Steve Smith/Pershing High/MSU

Scholarship for Academic Achievement. We couldn’t be prouder

of Sherronia, and more thankful of Steve Smith and his passion for

investing in students and Detroit’s future. 20141020-SUPP--0035-NAT-CCI-CD_-- 10/8/2014 2:51 PM Page 1

FALL 2014 Page 35 NEIGHBORHOODS GENTRIFICATION The ‘G’ word Income diversity seen as path to vibrant city,neighborhoods

mbrace the “G” word. That’s what automotive dealer and real estate investor Greg Jackson told attendees at the Detroit Home- E coming. “The word doesn’t scare me,” Jackson said. We need more diversity of incomes in De- troit, said Jackson, who is one of four African-Americans to own a Mercedes-Benz dealership and owns Lafayette Towers, an apartment complex on the eastern fringe of downtown Detroit. “Gentrification” is a term used to describe the reinvestment in deteriorating urban centers in a way that attracts higher-income people. In some Detroit circles, it puts “hipsters” in conflict with low-income residents, leading some residents to push for mandated “community benefit” pacts from developers. The topic was also addressed at the Detroit Homecoming in September. Dan Doctoroff, a Detroit “expat” and former deputy mayor of New York City, com- pared Detroit’s opportunities to the resurgence in Harlem. Central Harlem was 90 percent African-American between 1940 and 1990, said Doctoroff, now CEO of Bloomberg LP, in his Homecoming keynote address. As Harlem’s racial, ethnic and income diversity increased, the area became AARON ECKELS Greg Jackson, an owner of a Mercedes-Benz dealership and the Lafayette Towers apartment even more vibrant. complex, said Detroit needs the diversity of incomes that comes with gentrification. For Shirley Stancato, CEO of New Detroit Inc., a nonprofit devoted to advancing race the racial aspect of gentrification to the eco- Butler said her firm has a specialty in ur- relations, the important issue is to make sure nomic issue of gentrification,” Butler said. ban retail development and has faced gentri- people’s voices are heard. “We do need addi- “Under-served communities in Detroit need fication debates. tional population and a stronger tax base in increased economic re- Seven years ago, it acquired Baldwin Hills the city,” Stancato says. “I’m a former sources that more resi- Crenshaw Plaza in south-central Los Angeles. banker. I know that.” dents with higher levels of “We spent more than $30 million, upgrading But many Detroit residents “don’t see disposable income can it from a Class C to a Class A property,” she themselves in what’s happening” in robust bring. Those residents can said. “But we started by sitting down with the areas like downtown and Midtown. They be black, brown, yellow, community and asking, ‘What do you want? need to see how these investments will bene- white — doesn’t matter. What do you need?’ ” fit them, she said, with better schools, blight Retailers are just looking Today, it has national retail anchors and removal and jobs for working-class and low- for higher levels of dispos- restaurants even foodies patronize, as well as income residents. Butler able incomes. a mix of local retailers and an upgraded food It’s not a zero-sum game, added “expat” “I am tired of the racial court that has given food truck entrepreneurs Gwendolyn Butler, a Mumford High School element of the discussion. That’s not the like Southern Girl Desserts a fixed location. graduate and president/COO of Chicago- point. It’s making sure neighborhoods are vi- Its shoppers include Asian, African-Ameri- based Capri Capital Partners. brant enough that property values increase. cans and Hispanic residents from the sur- “When I think about Detroit, the discus- For those who own homes now, their wealth rounding areas, she said. sion needs to change and focus away from increases, too.” — Mary Kramer 20141020-SUPP--0036,0037-NAT-CCI-CD_-- 10/8/2014 2:08 PM Page 1

Page 36 FALL 2014 FALL 2006 ESSAY DAVID FEEHAN Stepping lively Afternoon walk reveals ‘new’downtown, opportunity

n early 1994, after directing Kalamazoo’s ing, create a new “greater downtown” organi- stunning. downtown organization for five years, I zation, and provide support to community de- A quick drive from Jefferson up Washing- was offered the opportunity to return to velopment corporations in the neighborhoods. ton Boulevard, around the theater district my hometown of Minneapolis, where I Working closely with Bob Larson, CEO of and the ballparks, then to the New Center on I was expecting to lead the city’s commu- the Taubman Cos., and Jim Tervo, Mayor Woodward revealed all kinds of new projects. nity development agency. However, newly Archer’s top development adviser, we I thought, “This is what transit-oriented de- elected Detroit Mayor Dennis Archer called hatched a plan to acquire the Hudson’s velopment, Detroit-style, looks like.” with a pitch I found too enticing to pass up. building and much of the surrounding real Once I checked in at the Westin Book Cadil- He said, “You can go back to Minneapolis estate, eventually totaling about 16 acres. lac — an unbelievable transformation, and one and make a nice town even nicer, or you can With commitments of $2 million from local I thought I would never see — I strolled down come to Detroit and help me rebuild a great corporations and help from the Honigman through Hart Plaza to see the riverfront walk- American city.” law firm and Vigliotti Realty, we secured op- way. There I met a middle-aged couple, I was soon working for Detroit Renais- tions and purchase agreements on about 80 tourists from Frankfurt. German tourists? sance as executive director of downtown and percent of the buildings within our target Further along the “international river- community development, and wondering ex- area in less than a year. Those options were front,” as it’s called, I encountered another actly where to start. transferred to the city of Detroit once the group of tourists, this time from Sweden. I Downtown Detroit was on life support. project became public, and today Com- walked around the Renaissance Center, More than a quarter of the commercial build- puware, Quicken Loans and many other where my office used to be, and into Greek- ings were totally vacant, another quarter was companies occupy the site. town; I paused for a brief conversation with a less than 50 percent occupied. That left half Rather than attempt a merger of the four young couple from Spain. Diversity was tak- the commercial real estate economically non- downtown organizations that existed at that ing on a whole new meaning in Detroit. functional. Some retail stores (and there were time, we elected to create the Downtown De- My afternoon walk lasted about three few) were heated with kerosene space heaters. troit Partnership with a focus on the central hours. Sidewalks were clean. Planters were Even the better restaurants were not that business district but allied with and support- filled with colorful flowers and decorative good, and one, located near Harmonie Park, ing the other groups along the riverfront and plants. Bikes were nearly everywhere. Despite refused to put a sign on the exterior and kept up into Midtown and New Center. what appeared to be a slew of apartment and the door locked. You had to knock to get in. I left Detroit in 1996 to become president condo conversions, I was told that the vacan- Woodward Avenue was 10 lanes of pot- of the newly created Downtown Partnership cy rate for downtown units was approaching holes with little traffic. Pedestrian traffic was in Des Moines, Iowa, a move precipitated by 1 percent, and waiting lists were as long as 18 virtually nil, even at lunchtime. The Hud- the death of my father in Minneapolis and months for good apartments. Coffeehouses son’s building loomed like a foreboding cas- the failing health of my mother. My return and appealing restaurants seemed to beckon tle, stripped by scrappers and open to anyone trips to Detroit were infrequent, most recent- the much-increased pedestrian traffic. who might have the courage to wander into ly a few years ago to visit with Dave Blask- Lunch in Eastern Market with Dan Car- its abyss. Islands of activity existed — City iewicz, who was then president of the DDP mody confirmed what I had been reading: Hall, the Renaissance Center and Greektown and pointed out some of the noticeable pub- Eastern Market is arguably the premier mar- — but they were exceptions. lic space improvements. ket of its kind in the country. Carmody has Detroit’s neighborhoods were also facing Still, nothing quite prepared me for the gained a reputation as a visionary when it massive challenges. Some community organi- change I experienced when I returned for the comes to connecting food, public health and zations, especially the Warren-Conner Devel- Detroit Homecoming event. It was, in a word, community development. opment Coalition and the South- In the heart of downtown, I west Detroit Business Association, used to see vacant lots and empty struggled to overcome a tsunami of Nothing quite buildings and think, “What a negative media coverage and failing tragedy!” I look at those same city services, but most neighbor- prepared me for buildings and surface parking hoods had simply lost the struggle lots and I now think, “What an and returned to prairie grass. the change I opportunity!” Working with the CEO of De- experienced. It was, But what of the neighborhoods troit Renaissance and city officials, I beyond downtown? While hous- was assigned three priorities: Figure in a word, stunning. ing initiatives are to be applaud- out a plan for the Hudson’s build- ed, and while urban gardens and 20141020-SUPP--0036,0037-NAT-CCI-CD_-- 10/8/2014 2:09 PM Page 2

FALL 2014 Page 37

green space will offer some respite from painfully empty blocks, a real opportunity may be present along Detroit’s commercial corridors. Most cities have figured out how to revitalize downtown, but neighborhoods will not return to health until progress is also made in terms of bringing back commercial corridors such as Gratiot and Grand River. Cities such as Pittsburgh and Washington, D.C., are evolving new and creative strategies for bringing these business streets back to life, and Detroit might learn from them. No one wants to buy a home in a neighborhood where the local Main Street is abandoned and scary-looking. One piece of concrete advice for Detroit: Find neighborhoods where there is still some good housing stock and social fabric, then concentrate on just a couple blocks of commercial storefronts at first.

One piece of concrete advice for Detroit: Find neighborhoods where there is still some good housing stock and social fabric, then concentrate on just a couple blocks of commercial storefronts at first. Work to build an alliance between business and property owners and neighborhood residents. Try to find locally owned businesses, not Walgreens and Invest. Engage. Subways. The chain stores will come later, but build a unique set of shops if you can. Revitalize. And create a local organization that can do the three M’s: manage, market and maintain. KPMG LLP is proud to be an integral part As I departed Detroit for a few days in the of Detroit’s future vision. We believe that Upper Peninsula, I had to appreciate that with empowering change comes from making all of the actors, big and small, engaged in re- viving Detroit, a corner had been turned. positive strides toward transformation. The clouds have broken, and once again, Investing in our community not only the sun is shining on Detroit. energizes its corporate and urban culture, but also connects its people David Feehan is the president of Civitas and processes to the results that will Consultants LLC in Silver Spring, Md. He reshape our city. worked with Detroit Renaissance — the pre-

cursor to Business Leaders for Michigan — to © 2014 KPMG a Delaware LLP, limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting throughcomplexity” are registered trademarks or trademarks of KPMG International. NDPPS 301642 kpmg.com revitalize the city’s core business district. Today he helps cities expand revitalization efforts beyond downtowns and into neighborhoods. 20141020-SUPP--0038,0039-NAT-CCI-CD_-- 10/9/2014 10:08 AM Page 1

Page 38 FALL 2014 FALL 2006 NEIGHBORHOODS CORKTOWN Progress, and a hangover As spotlight shines on new biz, longtime shops feel left out BY AARON FOLEY SPECIAL TO CRAIN’S DETROIT BUSINESS year ago this week, Crain’s De- troit Business reported that Paul “PJ” Ryder was going into his sixth year of running PJ’s Lager House in Corktown in deep debt. A Ryder had run up $30,000 in credit-card debt and owed more than $24,000 in back taxes. What a difference a year — and some in- advertent publicity — can make. When contacted for a follow-up, Ryder was out buying restaurant equipment, “if that’s any indication” of how business has picked up lately, he said. ANJANA SCHROEDER His debts are down. He was able to pay Many Corktown business owners aren’t certain what Corktown’s boundaries taxes on time for the first time in two years. actually are. J. Xavier Slade, one of Corktown’s longtime business owners, sums Some menu changes — a price change here, it up this way: “I call it Corklandia.” an eliminated item there — helped. So did reviewing expenses line by line: Changing the little things, such as improved litter But Corktown is also grappling with who trash-hauling services, for example, helped pickup and snow removal, and not be is included in its future progress — and the Lager House save $100 a month. overzealous on others, such as parking en- who feels left out. As the national media What really helped business pick up, Ry- forcement along metered streets. continue to shine their lights on the neigh- der said, were new businesses opening near- borhood, some longtime businesses are by, including the Brooklyn Street Local deli, growing frustrated at being passed over. the Detroit Tough gym and the Detroit In- Adding to the confusion, most of the own- stitute of Bagels, all of which opened within ers themselves aren’t sure what the neighbor- the last year. “I just walk out, and all of a hood’s boundaries actually are. Ryder as- sudden I’ve got neighbors now,” Ryder said. sumed he was too far outside the prime PJ’s Lager House is on the eastern end of Corktown bubble surrounding Slows Bar BQ Michigan Avenue closer to downtown. “We and Astro Coffee to claim the moniker, but like to call ourselves the gateway to Cork- he still gets included in media reports. town,” Ryder said. The eastern end seems to “I call it Corklandia,” said J. Xavier Slade, be catching up with the western side, which one of Corktown’s veteran business owners. has seen an influx in foot traffic thanks to He has operated Xavier’s 20th Century new places like Mercury Burger Bar and As- Modern Furnishings for two decades on tro Coffee. Michigan Avenue at 18th Street, near the The number of new businesses has newly opened Two James Distillery. strengthened the area’s reputation as one of His clientele ranges from well-heeled sub- Detroit’s thriving small-business neighbor- urbanites to collectors worldwide; he recently hoods. But there are also challenges: Busi- shipped off a $2,100 lamp to a New York ness owners pool money for security patrols buyer. But despite his success and longevity, and parking lot guards. Petty crimes, such SUZETTE HACKNEY Paul “PJ” Ryder of PJ’s Lager House: “It’s a Slade said some business owners have told as larceny, are chief among the neighbor- challenge every single day, but I still very much him that he’s not a part of the neighborhood, hood’s issues. The city could also step up enjoy what I do.” 20141020-SUPP--0038,0039-NAT-CCI-CD_-- 10/9/2014 10:08 AM Page 2

FALL 2014 PAGE 39

number of occasions. Attractive business fronts “We would love to have Xavier’s and can be found along Michigan Avenue on the Rachel’s as members,” he said. “Many of our west end of Corktown. members are businesses that have been here for more than 20 years. We welcome everyone.” One boon to being in the neighborhood is being situated in one of the city’s most bikeable neighborhoods. Both foot and bike traffic have increased dramatically in the past few years. “People bike from here to Midtown, and I saw a definite increase in traffic through my door as a result,” said Wade Kergan, owner of Hello Records on Bagley Street, with a laugh. What he’d like to see come to Corktown as a result is more retail, like Rachel’s Place. “There are a lot of places to eat,” he said with a laugh. The success of Hello Records has allowed Kergan to pursue a second location on the east side of the city or an eastern suburb. It was the diversity and energy of Detroit that drew Roger Dyjak, a lifelong Detroiter, to open up his gym, Detroit Muscle, on Beech Street. “I wouldn’t have done it in Clinton Township or Canton. I would have

KENNY CORBIN been bored,” he said. Detroit Muscle needed an entertainment that his end of Michigan Avenue isn’t part of first year of business, they got a shamrock. I license since it occasionally hosts live acts, Corktown, even though Two James bills itself never got a damn shamrock.” something that wasn’t a problem getting as a Corktown establishment. The shamrocks, however, are given out by from the city. “The city’s been on point,” “I thought I was in Corktown all the time,” the Fraternal Order of United Irishmen, not Dyjak said. Slade said. “I figured Corktown’s boundaries the CBA, as part of their annual parade and One of Dyjak’s other efforts is working went all the way up to the freeway.” run. Businesses along the run route are giv- with the city to address a growing homeless The Corktown Business Association en Shamrocks; this year, the event grew so veteran problem. Detroit Muscle has hosted would agree that his shop falls within its in- large that the route was extended up Michi- giveaways and drives for veterans in the city, formal boundaries, which stretch from Mar- gan Avenue. about 500 of which are in Corktown alone, tin Luther King Boulevard to the north, Fort Still, Slade feels left out because the spot- Dyjak estimated. Street to the south, the Lodge to the east and light seems to only fall on newcomer busi- “It’s one of the areas people don’t want to I-75 to the west. Formed 18 months ago, the nesses. Slade said Phil Cooley has yet to visit talk about,” he said, noting the city could organization has 80 members and accepts stand to be more receptive to it. “People both businesses in the area as well as their his store. “How would you not know that my store is down there if I’ve been here for want to talk about, ‘Oh, Dan Gilbert’s build- suppliers. ing this.’ ” “The more people we have in the associa- 20 years?” he asked. Rachel Leggs, owner of vintage-clothing Back at the Lager House, Ryder is still tion, the stronger our voice is in City Hall dealing with the slow burn that comes with and the sooner we can get things done,” said store Rachel’s Place, stamps her business cards with contact information and the an influx of business. He sleeps a little easier, Ron Cooley, who runs the CBA and father and he’s been able to pay himself a little bit, word “Corktown” underneath, but said she of Phil Cooley, who is arguably Corktown’s as opposed to last year, when he wasn’t pay- doesn’t feel like she’s truly part of the action most famous business owner as a proprietor ing himself at all. of Slows Bar BQ, Ponyride and Gold Cash going on just blocks away despite owning There are still some problems, like paying Gold. both a business and properties in the area. for someone to watch his parking lot and Sometimes, Slade said, it’s the little things “Do you want the truth?” Leggs asked, dealing with insurance costs for the building that make him feel left out of all the cover- pausing from flipping through the Decem- after a recent fire. “My insurance agent just age and excitement about Corktown. Dur- ber 1979 issue of Ebony with soul singer decided he didn’t want anything to do with ing the annual St. Patrick’s Day parade, dec- Teddy Pendergrass on the cover. “They Detroit,” he said. orative shamrocks are hung up and down don’t want to deal with us. “It’s a challenge every single day, but I still Michigan Avenue. In the years Slade has “I don’t think they’ve met black people very much enjoy what I do,” he said. “I very been in business — he also owns his build- with money.” much enjoy the people who come through ing, the building next door, and a parking But Ron Cooley said everyone is welcome here. If you have the passion for whatever it lot — he said no shamrocks were ever hung in the Corktown Business Association and is doing, you’re going to persevere through on his block. But, he said, “in (Two James’) that he’s frequented Rachel’s Place on a whatever it takes to become successful.” 20141020-SUPP--0040,0041-NAT-CCI-CD_-- 10/8/2014 2:34 PM Page 1

Page 40 FALL 2014 FALL 2006 NEIGHBORHOODS STAKING THE FUTURE ON GRATIOT

BY AARON FOLEY SPECIAL TO CRAIN’S DETROIT BUSINESS hat’s with all these damn cheesecakes?” asks a woman carefully dividing cheesecake into equal, triangular slices. ‘W The night’s crowd at Ca- pers Steakhouse on the city’s northeast side ate all of its famous carrot cake, so tonight they’re getting by with an all-cheesecake dessert offering. It would be easy to miss Capers, hidden as it is along Gratiot Avenue between Seven and Eight Mile roads. This stretch of the city isn’t exactly barren, but it’s not the powerhouse business district it once was. Few family- owned businesses, such as the custom-rug dealer across the street, remain. But Capers has stayed, selling steak by the ounce to a packed house since 1982. In walks Gary Jacobs, dressed in a news- boy cap and smelling of Clubman. He greets each employee, giving the woman slicing the cheesecake a kiss on the cheek. To his mind, he hasn’t “stuck it out” at Capers as much as MICHAEL JACKMAN Gary Jacobs, with help from wife Janina, has been operating Capers Steakhouse on Gratiot Avenue not given up on a good thing. south of Eight Mile since 1982. And why does the Gratiot corridor matter? “It’s closer to the money,” Jacobs was a golfer who was on his way to he said. a career on the green but needed a winter job to pass the time when the courses were closed. He started working at General Mo- tors but left in the late 1970s after reading a Hungry for more book by real estate guru Al Lowry. He sold his Camaro Z28 and used the money to buy the building that now houses Capers, his first Steakhouse owner looks to invest income property. Lowry filed for a headline-grabbing bank- in, making the now-popular desserts. On the The success at Capers let Jacobs buy more ruptcy in the 1980s, but Jacobs has contin- third Sunday, bartender Sue Taormino — properties, including the two adjacent to the ued to grow his business holdings and in- who still works there — told Jacobs that the steakhouse. vestments. Over the years, he has owned staff at the now-defunct Big Bill’s Saloon “The buildings around us were just in such dozens of properties across the city, but now planned to stop by for steak. Again, Jacobs disarray,” he said. “There was a drug den and holds only Capers and the two adjacent sold out. a chop shop. It was despicable.” properties. Now his main investment is in The same thing happened in the middle of Now he’s in discussions with the Detroit East Lansing-based HRC Hotels LLC, which a 1983 snowstorm that dumped almost a foot Land Bank about what the future of this area owns and operates several hotels nationwide. of snow on Detroit. might look like — and what his next invest- Jacobs initially assumed he would do a “That’s when I truly knew we had some- ments might be. quick flip of the Capers building, but the thing,” he said. “I am strongly considering — depending project nearly ran him dry. The owner of The crowds still come, daily now, for the on what is said downtown, which is of course Cheers, a nearby bar, was hosting steak din- T-bones at 70 cents an ounce — 80 cents to- always a challenge — what we can do with ners on Mondays and suggested Jacobs do go — and filet for $1.50. He sells 2,800 it,” Jacobs said. “I’m no longer interested in the same on Sundays. pounds of steak on good weeks. waiting on the city or waiting on the govern- “So I bought a loin — 15 pounds,” Jacobs ment or anyone else.” said. “Scared me to death. I thought, ‘What He’s cautious, though, because he’s seen am I going to do with this?’ ” “I’m a Detroiter. I’d how previous city administrations treated He sold every ounce, weighing the cuts small-business owners. “The best word my with a scale on the bar. The next Sunday, he rather do it all here. mother used to use was ‘discombobulated,’ ” sold 22 pounds of steak; his wife, Janina, co- he said. “It’s almost like it’s anti-business in- owner and a well-known golf writer, joined It’s just my home.” stead of pro-business.” 20141020-SUPP--0040,0041-NAT-CCI-CD_-- 10/8/2014 2:34 PM Page 2

FALL 2014 Page 41

clients would be attracted, including plane pare legislators a lunch, including her favorite builders and engine builders, to the site, as well dish: rice pilaf. It’s tradition for rookie legis- as a potential increase in commercial flights. lators to bring in a symbol from their district “I’m strongly looking at doing an airline upon passage of their first bill. myself,” Jacobs said. They’ve built a rapport through the years. Because of his investment with HRC Ho- “He recognizes that Gratiot is an artery into tels, he’s also strongly considering building our city, into downtown,” Howze said of Ja- lodging in the area. cobs. “When you have individuals like Gary What’s key to Jacobs, though, is employ- who are committed in the neighborhood, DAVID HALL ment. “People truly want jobs here. They want who choose to be in the neighborhood, you He’s taking a wait-and-see approach with to work. They don’t want to be on the govern- hope that it will become contagious.” Mayor Mike Duggan but says he has seen some ment dole,” Jacobs said. “That’s one of the Jacobs echoes the importance of the Gra- improvement, which he credits to Lisa Howze, wonderful offshoots about being here for near- tiot corridor. the mayor’s director of governmental affairs, ly 40 years. These things are now possible, and “It’s closer to the money,” he said. “I hear it an eastside resident and longtime Capers cus- I think a lot of that has to do with Mayor Dug- every day, ‘I’m not going to drive from Eight tomer. He also has been impressed with the gan’s attitude and certainly Lisa Howze.” Mile to downtown and take a chance on my car manager of nearby City Airport, Jason Watt, Howze, who lives near Capers in the Eight breaking down,’ and we want to change that.” and Air Traffic Manager Greg Williams. Mile-Gratiot area, first met Jacobs during her Some things have to change in the city first. Jacobs said the trio approached him and a first term in the state Legislature when the Besides working on the east side, Jacobs and handful of others with a plan on what to do restaurant was undergoing renovations. HRC are working on building hotels in North with the airport and the areas surrounding it, “It’s one of those places that’s always been Dakota, where he’s been spending time lately. should the city remain in control of the space there, but I never took the opportunity to “I’d much rather build it here,” he said. after it exits bankruptcy. Currently, the plan go,” Howze said. “When I saw how many “The difference between acquiring, permit- of adjustment includes a $28.5 million invest- people were coming in, even from the west ting, inspections and final occupancy is night ment in the facility. side of town, it’s like, ‘Wow, OK, they have a and day between North Dakota and Detroit. The idea is to bring job development and good thing going here.’ ” “But I’m a Detroiter,” he added. “I’d community rebuilding to the area, with the air- When Howze passed her first bill in the rather do it all here. It’s just my home. I was port as its nucleus. More industrial-focused House, she asked Jacobs and his crew to pre- born here, raised here; this is me.” CDB Living In The D_New CD Magazine sized 10/3/2014 12:42 PM Page 1

The Kresge Foundation works to expand opportunity for low-income people in America’s cities through grantmaking and investing in arts and culture, education, environment, health, human services and community development efforts in Detroit.

Kresge’s Detroit Program is proud to partner with organizations promoting long-term economic opportunity that advances social equity, promotes cultural expression, and re-establishes Kresge’s hometown as the center of a vibrant region.

3215 W. Big Beaver Road | Troy, Mich. 48084 | 248-643-9630 | kresge.org 20141020-SUPP--0043-NAT-CCI-CD_-- 10/8/2014 5:36 PM Page 1

FALL 2014 Page 43 FALL 2006 ESSAY BARBARA GERVIN-HAWKINS Ready to reconnect Homecoming inspires ‘expat’to commit to city’s future

hrough the years, I always won- ning team of local Detroiters who will be par- dered what I could do to make a ticipating in meetings via email, Skype and meaningful contribution to my All of my successes other technological devices. home, Detroit. Well, the Detroit Our next face-to-face planning meeting T Homecoming crystallized my can be attributed to my will occur in December 2014, where we will thoughts and brought into focus not what I unveil much-needed community-based ini- can do but what I will do. experiences in the tiatives. I am committed to contributing a signifi- My brother (former Eastern Michigan cant amount of intellectual knowledge, fi- great city of Detroit. University and National Basketball Associa- nancial resources and time to support an im- tion great George Gervin) and I are now re- proved quality of life for Detroiters. And I’m When I travel all over the country and see connected to Detroit, and we are committed committed to reconnecting with other local other “expats,” I hear of the wonderful sto- to doing our part in the revitalization and and ex-Detroiters to make this happen. ries of the past; now I can talk to them about transformation of our hometown. I am a daughter of Detroit, and feel I owe how they can assist with the future develop- my city so much from the many years of ment of Detroit. During the short week I just Barbara Gervin-Hawkins is president and community support, the education I received had in Detroit through the Homecoming, I CEO of George Gervin Youth Center Inc. in as a student in the Detroit Public Schools now plan to purchase a condo, hopefully to San Antonio. She has raised more than $150 system, my collegiate days at Eastern Michi- help the tax base, and establish a presence. I million in revenue to provide services to at-risk gan University and even my early profession- have met with community and business lead- youth and their families. She attended Martin al years at businesses such as Allstate Insur- ers and have put together a 40-member plan- Luther King Jr. Senior High School. ance Co., Ford Motor Co. and the Detroit Edison Co. All of my successes can be attributed to my experiences in the great city of Detroit. It is time for me to roll up my sleeves for my city and take on some heavy lifting along with sharing a continuous positive message.

GEORGEGERVIN44.COM Former NBA great George Gervin and his sister Barbara Gervin-Hawkins both attended the Detroit Homecoming in September and both are alums of Martin Luther King Jr. Senior High School in Detroit. CDB Living In The D_New CD Magazine sized 9/30/2014 1:27 PM Page 1 “WHO BRINGS ENERGY TO THIS COMMUNITY?”

Strong communities are the foundation of a healthy, thriving environment for all people. That’s why DTE Energy helps power communities through supporting projects and programs that enhance life. We take pride in our efforts to provide positive youth development. We partner with local leaders to promote community initiatives from environmental education to economic development, including community outreach services. We’re using our energy to serve. 20141020-SUPP--0045-NAT-CCI-CD_-- 10/8/2014 3:04 PM Page 1

FALL 2014 Page 45 FALL 2006 NEIGHBORHOODS EAST JEFFERSON DISTRICT

PHOTOS BY KENNY CORBIN Left: Jefferson and Chalmers avenues intersect in the area that bears the street names. Above: Craft Work is among the small businesses that have opened in the West Village in the past year. Cash in the corridor

former lumber company office on Kercheval Investors choose Avenue in Islandview Village, just east of Eastern Market and near the Heidelberg Pro- East Jefferson ject. The museum’s team found the building, which had been vacant for two decades, posted on Craigslist. They bought it for despite challenges $26,000. Seafoam Palace will display collections of BY ANNA CLARK artifacts from folklore, mythology, the natur- SPECIAL TO CRAIN’S DETROIT BUSINESS al sciences, anatomy, astronomy, mineralogy ou could call Detroit’s East Jeffer- and map-making. The museum, which has Seafoam Palace, now in development, will filed for nonprofit status, will also feature son corridor a museum of cu- display collections from folklore, mythology, riosities. It is five diverse neigh- the natural sciences, astronomy and more. work from mixed-media artists, presenta- borhoods along the river: tions about “historic adventurers,” and com- Lafayette Park, Rivertown, The corridor is that you’ve got five distinct neigh- munity workshops. Villages,Y the Marina District and Jefferson- borhoods … and each has various types of “We would like the space to offer narra- Chalmers. Together, they envelop the De- investment happening,” said Joshua Elling, tives about natural and unnatural phenome- quindre Cut, the Jefferson North Assembly executive director of Jefferson East Inc., the na and invite our visitors to explore new per- Plant, the Detroit Waldorf School and Belle community development corporation. spectives and ideas about the world around Isle, among other destinations, offering an But now, an actual museum of curiosities them,” said photographer Julia Solis, the eclectic window into life in the city. is coming. The Seafoam Palace is in develop- museum’s co-founder. “What’s unique about the East Jefferson ment in the 13,000-square-foot building of a SEE PAGE 46 20141020-SUPP--0046,0047-NAT-CCI-CD_-- 10/8/2014 4:37 PM Page 1

Page 46 FALL 2014 FALL 2006 NEIGHBORHOODS EAST JEFFERSON DISTRICT Q&A/JOSHUA ELLING FROM PAGE 45 Is it worth the effort? Solis said that support But opening a business in the East Jefferson in the East Jefferson corridor helps them build Executive director corridor comes with unexpected challenges. So- momentum. Jefferson East Inc. lis’ building was built in 1917 and is on the Na- “We have a strong community that is actively tional Register of Historic Places; it has good working on making the neighborhood safer and How would you describe investment wood and interesting plasterwork, but after years more attractive to new arts and business pro- along East Jefferson? of vacancy, it requires unusual attention — and jects, and we’ve received a warm welcome from What’s unique about the East Jefferson expense. A recent successful Kickstarter will the residents who are excited to see a long aban- corridor is that you’ve fund repairs on the roof and exhibition space, doned building put to new use,” Solis said. got five distinct neigh- but money for additional work — like linoleum More and more investors are making that op- borhoods and each has floor removal, hardwood floor finishing, instal- timistic leap in East Jefferson, both on a small various types of invest- lation of heating vents, electricity updates and scale, like the Seafoam Palace, or as a massive ment happening. Obvi- new staircase railings — is not yet secured. operation, like the $60 million Orleans Landing ously, the two hottest ar- “Getting the place ready for the public will retail and residential development in Rivertown. eas we’re seeing (are) end up costing much more than we thought,” Rivertown is further benefiting from the Rivertown, where there’s said Solis. completion of the RiverWalk, including Mount a lot of energy for larger- The Seafoam team is seeking a grant writer Elliott Park, which opened in June as part of a $44 million east riverfront investment by the Elling scale new development, to move it forward. Its optimistic date for and The Villages, which opening is in late 2015, though Seafoam will Detroit Riverfront Conservancy. In Jefferson is a hot real estate center right now. begin programming “in or outside of the Chalmers, the Chalmers Square Project recon- Jefferson-Chalmers probably has the building” by summer. It already had one out- structed three vacant buildings, enlivening a his- weakest (investment) demand, but even door event this year: “Animated Curiosities,” a toric district with family-style apartments and here, there’s the success of the Chalmers screening of short animated films from around commercial space. Square Project. the world. In the Marina District, Parkway Foods opened a 47,000-square-foot store in a vacant What is stalling investment in the 102 shopping center. This comes in addition to 53 much-celebrated small businesses opening in district? 5 10 1 the past year, including Craft Work and Detroit What’s limiting growth throughout the 75 corridor is ready-to-go retail space, so 96 Vegan Soul in West Village, Rose’s Fine Food in 3 39 UNITED STATES the Marina District and Coffee and (___) in Jef- businesses like the Parker Street Market CANADA and Sister Pie, they’ve really had to go in ferson-Chalmers. 12 75 Joshua Elling, executive director of Jefferson and prepare to fully renovate their space. 94 JEFFERSON Especially in Jefferson-Chalmers, retail 24 DISTRICT East Inc., said investment is multifaceted in the space is so antiquated that it needs a lot of neighborhood. work. It’s good if landlords are commu- nicative and flexible with rents so that it can get good build-outs with quality ten- ■ Chalmers Square Project ants. We still have a problem in the far INVESTING IN Area: Jefferson-Chalmers eastern area with landlords sitting on Type: Residential/commercial (47 housing units, property and waiting for their big payday. 17,000-square-feet retail) THE HOOD Developer: Detroit-based Shelborne Develop- What is your biggest worry? ment Selected recent investments in East Jefferson: Investment: $7 million I still worry about the people who want to ■ DuCharme Place Status: Complete get rid of blight by just knocking down all Area: Lafayette Park the buildings. We have a lot of very historical Type: Residential (185 units) ■ Rivertown Senior Neighborhood districts with their traditional frontage main- Developer: Birmingham-based McIntosh Poris As- Area: Rivertown tained, like the Agnes Street intersection in sociates and Walter Cohen Type: Residential: 80 assisted-living units (phase the West Village, and Jefferson-Chalmers. Investment: $30 million one); 50 independent-living units (phase two), 10- Status: Fall 2014 expected construction start, late That’s what people seem to be craving; they unit nursing home (phase three) 2015 opening Developer: Presbyterian Villages of Michigan, don’t want to see it demolished for another United Methodist Retirement Communities strip designed for motor-centered retail. ■ Globe Building: Outdoor Adventure Investment: $40 million People are drawn to denser commercial & Discovery Center Status: Phase one complete; phase two in process districts; they want to be able to walk to Area: Rivertown get a cup of coffee, walk to the grocery Type: State-run nature center ■ Alden Park Towers store, take a quick bus ride downtown. Developer: Michigan Department of Natural Re- Area: The Villages sources, Detroit-based Roxbury Group, Detroit Type: Residential renovation (380 units) We value the density and walkability of Economic Growth Corp. Developer: Denver-based Triton Management the urban form, and historic preservation Investment: $16 million Investment: $8 million is one part of that. Status: February 2015 expected opening Status: Three of four towers complete 20141020-SUPP--0046,0047-NAT-CCI-CD_-- 10/8/2014 4:37 PM Page 2

FALL 2014 Page 47 TakeTake a a Ride! Ride! “We always want to have third-place amenities, like bars and restaurants, places TheThe Detroit Detroit People People Mover Mover where residents and visitors can go,” he said. “But we also think the next frontier is diving is the Way Around... into the Marina District and the Mount El- is the Way Around... liott business corridor. We really want to support light manufacturing industries that …Traffic create jobs not in the twos or threes or fives, The Central Business District is changing, but 15 or 25 residents at a time.” and there’s no better way to see what’s going on in the “D” from high above the Elling pointed out that the Marina District activity on the streets and sidewalks. has a great deal of vacant land, making it No bottlenecks here. possible to build a strong industrial district …Office Buildings and Attractions that is buffered from residential areas. Next time you come to Downtown Detroit, be sure to ride the People Mover! Fast, safe & fun “Jefferson-Chalmers is a neighborhood for work and play – with convenient stations whose growth we want to see, and the exciting that connect major, public spaces, facilities Agnes (Street) strip has just blossomed,” Elling and over 300 businesses. said, “but we want to see a broad cross-section

of our residents employed here, especially Rolling where you want to go – in minutes! longtime residents of the neighborhoods.” For residents, housing options are grow- 313-224-2160 ing. In The Villages, Alden Park Towers has come back to life. The Villages are also seeing www.thepeoplemover.com @DetPeopleMover a lot of rehabilitation on single-family homes. “It’s hard to find a house in West Village,” Elling said. “They’ll go quickly, even the ones that need a lot of work.” And after being on hold for years, DuCharme Place is a $30 million Lafayette Park residential project, one of the few from- scratch developments in the city. The hope, then, is for East Jefferson to not only become a hub for play and work, but also, for a broad cross-section of the city, a Talmer Bank and Trust is dedicated place to call home. Building to supporting the things that make a future our neighborhoods thrive. ■ Orleans Landing That’s why we’ve committed up Area: Rivertown to $1 million in forgivable grants Type: Residential/commercial (278 housing units, together. for homebuyers taking part in the 10,500 square feet of retail) Developer: St. Louis-based McCormack Baron Marygrove revitalization program. Salazar Investment: $61 million We salute the many organizations, Status: Site preparation businesses and residents who are ■ Border Patrol facility working together for the good of Area: Marina District Detroit. As a community bank, Type: Federal security center Talmer is here to support the Developer: Department of Homeland Security committed partnership that is Investment: $17 million moving our city forward. Status: Under construction

■ Whittier Manor Area: Rivertown Type: Residential (150-unit affordable senior Community. Integrity. Service. Visit our website to ﬁnd out more about housing in phase one) Talmer Bank’s $1 million investment in Developer: Detroit-based Phoenix Group the Marygrove neighborhood. Investment: $40 million for phase one Status: Phase one complete; phase two (Whittier

Hotel) in planning 800.456.1500 | www.talmerbank.com EQUAL HOUSING LENDER CDB Living In The D_New CD Magazine sized 10/8/2014 3:59 PM Page 1

GREAT leads. GREAT exposure. A SUPERIOR resource.

Crain’s Book of Lists consistantly delivers high satisfaction ratings by readers who use it as a vital tool to grow their businesses

New for 2015 Showcase your company’s Exclusive Advertising Opportunities advertising message next to ɵ Front Cover Sponsor: Company logo on the front cover your industry-speciÀ c list. ɵ List Page Strip Ad: BONUS: Get 20% off the strip with purchase of full-page ad Readers refer to it ALL YEAR ɵ Vision 2015: Showcase your company’s industry insights • Nearly two-thirds of readers retain with a full-page advertorial in this special section the Book of Lists for up to one year

ɵ Index Pages: Own the section with three quarter-page ads, • 96% reference it at least 4 times a year each centered on an index page. This exclusive position • 6 in 10 readers are in top management is available to only one advertiser • 77% are involved in purchase/ Plus Enhanced Listing Package lease decision making Did your company make the cut for a Crain’s list? Make that • $414,000 average reader income* status work harder for you. Stand out from your competition by highlighting your listing in both the print and online editions of the 2015 Book of Lists. ISSUE DATE: DEC. 29, 2014 CLOSE DATE: OCT. 31, 2014

crainsdetroit.com

* Source: Signet Total Audience Study, 2014

Advertising information: Marla Wise at [email protected] or (313) 446-6032. 20141020-SUPP--0049,0050-NAT-CCI-CD_-- 10/8/2014 5:31 PM Page 1

FALL 2014 Page 49 NEIGHBORHOODS GRANDMONT ROSEDALE

of Detroit’s most stable areas. The stately housing stock has for decades attracted middle- class families to the area that is Hot spot for technically five distinct neighborhoods that spread across 2.5 miles that centers on Grand River and Southfield Highway. pop-ups In recent years, however, the area has become one of the key areas for reinvestment. The De- troit Economic Growth Corp. named Grandmont Rosedale as one of the districts to which it would bring its Revolve Detroit program, using pop-up shops as a way to revitalize vacant commercial areas. That has turned into WorkPlace. A new Meijer is under construction at Grand River and McNichols Road. Even Detroit Soup started offering dinners in the neighborhood. Attendees pay $5 for soup, which volun- KENNY CORBIN teers make, and listen to pitches The business district along Grand River Avenue between Evergreen Road and Asbury Park has been hit-or-miss for community projects over over the years. A new co-working space, called WorkPlace, is an effort to change that by giving small businesses a place to test their concepts. dinner. Afterward, everyone votes on which project should collect the kitty from the night’s dinner. Grand River ready to open as Still, the business district along Grand River, between Evergreen Road and Asbury co-working space for entrepreneurs Park, has been hit-or-miss over the years. Naturally, residents were a bit skeptical

BY SUZETTE HACKNEY 102 when they saw Amanda Brewington sling- 53 SPECIAL TO CRAIN’S DETROIT BUSINESS ing coffee from a homemade pour stand 5 10 1 with three electric kettles. Her pop-up o-working spaces have popped 75 96 opened on Grand River for 28 days in No- up all over downtown and Mid- 3 UNITED STATES vember and December 2012. Brewington 39 CANADA town, offering people the ability answered a lot of questions, served the hot to share Wi-Fi, conference facili- 12 java and convinced herself that a permanent ties and workspace without hav- 94 75 C 24 GRANDMONT coffee shop was her destiny. ing to invest in private office ROSEDALE Always Brewing Detroit opened in July space. This month, just such a spot is com- 2013, and she has experienced a 5 percent ing to northwest Detroit in a large, renovat- Down Grand River, several other businesses growth in profit month over month. To ed commercial building on Grand River Av- are popping up, including a yoga studio; an open, she secured two loans — $15,000 enue. event-planning and decorating company; a from TechTown’s Thrive One Fund, for mi- “This is the first of its kind out in the thrift and resale clothing shop; and a com- nority- and woman-owned businesses, and neighborhood,” said Tom Goddeeris, exec- pany that offers social painting classes. $5,000 from the Detroit Micro-Enterprise utive director of the Grandmont Rosedale “There’s been a lot of success with these Fund, which helps small businesses in De- Development Corp. “It will also serve as a types of models in other parts of Detroit, troit obtain financing unavailable to them business incubator with a retail compo- and we’re hoping to start the same kind of from traditional banks. nent.” investment on Grand River,” Goddeeris Brewington, 29, still waits tables at a WorkPlace, as it is being called, will offer said. “We’re just starting to get things off downtown restaurant to make ends meet, both workspace and a spot for small busi- the ground. We feel like we need to be a but she’s confident that the coffee shop will nesses to pop up and test their concepts. complete neighborhood to stay competi- support itself, both the overhead costs and The first popup within WorkPlace will be tive.” repayment of the loans, before too long. Love Travel Imports, a boutique that sells Entrepreneurship is trickling into the handcrafted jewelry, scarves and handbags. Grandmont Rosedale neighborhoods, one SEE PAGE 50 20141020-SUPP--0049,0050-NAT-CCI-CD_-- 10/8/2014 5:31 PM Page 2

Page 50 FALL 2014 FALL 2006 NEIGHBORHOODS GRANDMONT ROSEDALE FROM PAGE 49 INVESTING Ⅲ Two-year grant to the She had fleeting thoughts of opening a coffee shop downtown or in Grandmont Rosedale Devel- Midtown, but the over-saturation and high rents ended that fancy. opment Corp. to acquire, ren- She said she always wanted a community gathering spot that happened IN THE ovate and resell vacant sin- to serve coffee. To that gle-family homes end, Always Brewing De- HOOD Investment: $225,000 troit hosts an open mic Investor: The Kresge Founda- Selected recent investments tion ON THE WEB night for musicians, po- in Grandmont Rosedale area: Status: Grant awarded in 2013 Q&A/ TOM GODDEERIS ets and comedians every Executive director, Thursday. There’s also Ⅲ Streetscape, landscape im- Ⅲ Pop-up project to promote Grandmont Rosedale craft night, and a Bring provements economic development Development Corp.: Your Own Board Game Investment: $1.2 million Investment: $30,000 crainsdetroit.com/detroit2.0 night. This summer, Investor: Michigan Department Investor: Revolve Detroit of Transportation Status: In progress Brewington and her fi- Status: Completed in 2005 ancé left their downtown Ⅲ Develop WorkPlace, a co- Detroit apartment and bought a home in North Rosedale Park. Ⅲ Streetlighting upgrade working space and business “I realized I wanted my business to be in a neighborhood where I Investment: $900,000 incubator would meet people,” she said. Investor: Detroit Public Light- Investment: $250,000 Pop-ups are all the rage in Detroit. It allows entrepreneurs like Brew- ing Department Investors: Revolve Detroit, Status: Completed in 2005 ington to test the water before putting down roots. But for Regina Ward ProsperUs, New Economy Initia- tive and Nicole Martin, they plan to spend the next 90 days convincing resi- Ⅲ Grant for community im- Status: In progress dents that Anahata Yoga should be a permanent neighborhood fixture. provement projects, includ- In Sanskrit, Anahata means “unstruck, unhurt and unbeaten,” exactly ing neighborhood welcome Ⅲ New Meijer store on Grand how they view Detroit and its residents. signs, security River just west of Grandmont “Detroit is an awesome place,” Ward said. “We just never stop in De- Investment: $50,000 Rosedale Investor: The Kresge Founda- troit — no matter what Detroit is going through, we persevere.” Investment: $20 million tion Investor: Meijer Inc. Status: Grant awarded in 2010 Status: In progress

U-M CELEBRATES DETROIT’S HISTORY, IMPACT AND FUTURE

The U-M Detroit Center

Founded in Detroit in 1817, the University of Michigan’s long-standing relationship with the city U-M Stamps School of Art and Design student volunteers includes the U-M Detroit Center with classrooms and spaces for exhibitions and project-based research; our popular Semester in Detroit program, designed for Michigan students to live, learn and work in the city; a tremendous tradition of cultural exchange especially with the Michigan Opera Theatre and the U-M School of Music, Theatre & Dance; strong relationships with the business community and the non-proﬁt sector featuring hundreds of students and faculty members engaging with Detroit-based initiatives each year.

U-M Ross School of Business student organizers CDB Living In The D_New CD Magazine sized 9/30/2014 8:11 AM Page 1

Detroit is home.

Deloitte has been honored to call Detroit its home since 1947. The inaugural Detroit Homecoming event was a huge success. Thank you to Crain’s Detroit Business for making it possible. Deloitte is a proud to have served as a sponsor for such an impactful event in our great city.

www.deloitte.com

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Our reach is global. Our roots are unmistakably Detroit.

Based in Detroit for over 100 years, Lowe Campbell Ewald is a full-service advertising agency that serves some of the world’s biggest companies. Our collective of thinkers, makers, dreamers and + doers comes together every day to create meaningful connections between people and brands.

Detroit Los Angeles New York San Antonio A part of the Lowe and Partners global network

FALL 2014 Page 53 NEIGHBORHOODS SOUTHWEST DETROIT Where resiliency calls home Southwest Detroit mixes hard work, entrepreneurship

BY AARON MONDRY SPECIAL TO CRAIN’S DETROIT BUSINESS he Michigan Central Station stands sentry at the entrance to Southwest Detroit. Drive West Vernor Highway underneath the T colossal ruin and you’ll emerge into one of the city’s most vibrant districts: Mexicantown. Here, just five minutes from downtown, West Vernor rolls through a strip of Mexi- can restaurants that attract crowds: Honey Bee Market, which is known for its exceptional produce; the popular Café Con Leche coffee shop; and the dense residential neighborhood of Hubbard Farms, which is filled with Victorians and other gracious homes along West Grand Boulevard. This section of West Vernor Highway in “We have a thoroughfare on Vernor that’s Mexicantown offers storefronts next to absolutely thriving,” said Hector Hernan- Detroit Cristo Rey High School (far left). dez, executive director of Southwest Eco- KENNY CORBIN nomic Solutions. But this well-known stretch of Southwest 102 53 Detroit represents a mere fraction of a neigh- 5 ON THE WEB 10 1 borhood that sprawls across approximately 75 Q&A/ LYDIA GUTIERREZ 96 three zip codes. Beyond Mexicantown lies a TES 3 Owner of Hacienda UNITED STA collection of stable neighborhoods that are 39 CANADA Mexican Foods: mostly populated by Latinos and other im- crainsdetroit.com/detroit2.0 migrants. There is a strong tradition of small- 12 94 75 business ownership, whether it’s one of the 24 SOUTHWEST DETROIT broke ground on the project. many restaurants or clothing stores selling “This is a Latino neighborhood, and one beautiful embroidered guayabera shirts. of the things about Latino families is they “We’re resilient; we’re vibrant,” said Ly- “Everything we do here is local,” Lopez often shop as a family,” said Theresa Zajac, dia Gutierrez, owner of Hacienda Mexican said. “The people who work for me are in- vice president of SDBA, which operates the Foods, which produces tortillas and other credible.” BID. “They all go shopping when dad comes foods. “Lots of people who were laid off In fact, Southwest Detroit was the first area home. So if you don’t have lights at night, from automobile companies started their in the state to form a business improvement you lose customers. And they didn’t have own businesses. They opened up restaurants district. By electing to tax themselves, com- any lights.” and jewelry stores. mercial property owners have generated That is slowly changing as two blocks of “We know what work is. We rolled up our funds for streetscape improvements, garbage Vernor are illuminated at a time. It is also sleeves and will continue to do so. Being pickup, extra security patrols. Last year the making the area more attractive to new resi- open to immigrants has certainly helped our improvement district hauled 500,000 gallons dents who are attracted to an area that is community. Anywhere in the country, of rubbish out of trash cans and another “edgier than downtown or Midtown, but where you see immigrants, you’ll also see 36,000 gallons from the street. It removed also more affordable,” said Kathy Wendler, growth.” 1,257 instances of graffiti, swept 644 miles of president of SDBA. Jose DeJesus Lopez, who owns Mi Pueblo sidewalk and mowed 60 miles of grass. The largest employer in Southwest, both restaurant at Dix Street and Vernor Highway, The biggest project to date, however, has historically and at present, is manufactur- believes the symbiosis between business and been the effort to get the 200 streetlights ing. The scrap yards may have replaced the community is what makes the area special. along a 2.3 mile stretch of Vernor relit. It automobile industry as the primary employ- Without the support, he said he would not took six years to raise the $6.4 million neces- ers, but manufacturing is and likely will re- have been able to expand from a humble sary and get all the approvals, but this spring home operation into a 60-table restaurant. the Southwest Detroit Business Association SEE PAGE 54 20141020-SUPP--0053,0054-NAT-CCI-CD_-- 10/8/2014 4:39 PM Page 2

Page 54 FALL 2014 FALL 2006 NEIGHBORHOODS SOUTHWEST DETROIT

FROM PAGE 53 Building rehab projects main a major part of its future. INVESTING IN Plan: Restoration of the Odd Fellows and “There’s a great pool of employees nearby — people THE HOOD Rebert buildings here have a tremendous work ethic. 95 percent of our Developer: Southwest Detroit Business employees live within three miles of Hacienda,” Selected investments in Southwest Detroit: Association Gutierrez said. Investment: $6.2 million West Vernor streetlights Status: Complete Because of open spaces like those at the site of the Plan: The Southwest Detroit Business former Cadillac Plant on Clark Street and others in Association is relighting 2.3 miles of West Vernor Square the once industry-saturated neighborhood of Delray, Vernor Highway, from Clark Park to Patton Plan: Retail space, public square, light there’s room to grow. Street, with 200 new streetlights and poles, industrial development of an abandoned “If you have an interesting product and are willing and new sidewalks and landscaping. 6.9-acre parcel at West Vernor and to experiment in this vibrant community, you’ll at- Investors: SDBA raised funds from Livernois Avenue tract visitors interested in learning and exploring,” Michigan Department of Transportation, Developer: Southwest Detroit Business said Olga Stella, vice president of business develop- city of Detroit, Southeast Michigan Council Association, Detroit Economic Growth ment at the Detroit Economic Growth Corp. of Governments, Kresge Foundation, W.K. Corp., Michigan Municipal League and “There really are places for businesses to land,” she Kellogg Foundation, J.P. Morgan Chase & Detroit-based Archive Design Studio Co., Community Foundation for Southeast Investment: More than $17 million added. “Land assembly in Detroit is difficult, but Michigan and Detroit LISC. there’s better and bigger sites in Southwest.” Status: Estimated completion in 2017 Investment: $6.4 million Southwest Detroit is already a locus of transporta- Microloans for small business tion mediums — it has easy access to major freeways, Detroit Intermodal Freight Terminal Plan: Southwest Solutions and the Ambassador Bridge, rail yards, and the Detroit ProsperUS offer microloans to River. Along with the Detroit Intermodal Freight Ter- Plan: Michigan Department of businesses in Southwest Detroit as well minal, plans are currently underway to build a second Transportation plans to build a massive hub as technical assistance and span to Canada, the New International Trade Cross- to facilitate transfer of rail to road freight entrepreneurial training. exchange at the Livernois-Junction Yard. ing, which would land in Southwest. Funders: Kresge Foundation and the “I see huge investments coming into the neighbor- Developer: MDOT New Economy Initiative hood as a direct result of the NITC,” Wendler said. Investment: Estimated at tens of Investment: $500 to $15,000 per business “It’s crucial that when people arrive (from Canada) millions; 4,500 jobs expected Investor: Southwest Solutions and they see a very beautiful place.” Status: Proposed; still in planning phase ProsperUS business training program A PREMIER UNIVERSITY RIGHT HERE IN DETROIT

Wayne State University has been creating success stories in Detroit since 1868. We’re Michigan’s only urban research university, a member of the University Research Corridor with U of M and MSU, and home to the largest single-campus medical school in the nation, just to name a few. Visit wayne.edu to ﬁnd out more. Or stop by our campus and see how we can help create a success story for you. AIM HIGHER CDB Living In The D_New CD Magazine sized 10/6/2014 3:10 PM Page 1

At Ford, we not only build great cars and trucks, we also work hard to support efforts that improve people’s lives and help drive our economy. Join us as we work together to reimagine the future of Detroit.

www.community.ford.com CDB Living In The D_New CD Magazine sized 10/2/2014 1:52 PM Page 1 20141020-SUPP--0057,0058-NAT-CCI-CD_-- 10/9/2014 5:16 PM Page 1

FALL 2014 Page 57 NEIGHBORHOODS BRIGHTMOOR

KENNY CORBIN Businesses such as Motor City Java & Tea House and the Redford Theatre, along Lahser Road, are in the most stable pocket of retail in Brightmoor. Meijer magnetism New store expected to help boost urban revitalization

BY SUZETTE HACKNEY 102 where Sweet Potato Sensations, the Redford 53 SPECIAL TO CRAIN’S DETROIT BUSINESS Theatre, Motor City Java & Tea House and 5 10 1 75 the newest tenant, Artist’s Village, are locat- hat’s all the buzz in Bright- 96 ed. TechTown Detroit, which has invested 3 UNITED STATES moor? Meijer, of course. 39 CANADA about $300,000 in the area, has been coach- Residents of the 4-square- ing these businesses and merchants toward

mile enclave in northwest 12 94 75 stabilization and growth. W Detroit say the addition of a 24 BRIGHTMOOR TechTown is best known for being a high- superstore to the neighborhood will only tech incubator attached to Wayne State Uni- enhance the urban revitalization that has versity, but its smaller SWOT City program taken hold in recent years. next year; generally, people are looking to assists new and existing small-business owners Brightmoor isn’t overrun with new com- see what Meijer is going to generate,” said across the city as a way to preserve — and merce, but the new Meijer store (set to open in Soummer Crawford, vice chair of the grow — jobs. 2015), along with strategic investment-estab- Brightmoor Alliance. Brightmoor has been hit hard by crime, lished businesses, is creating a certain energy. The most stable pocket of retail exists at “I expect a lot of development to come Lahser Road and Grand River Avenue, SEE PAGE 58 20141020-SUPP--0057,0058-NAT-CCI-CD_-- 10/9/2014 5:08 PM Page 2

Page 58 FALL 2014 FALL 2006 NEIGHBORHOODS BRIGHTMOOR

FROM PAGE 57 blight and abandoned homes, poverty TechTown Detroit. INVESTING IN and a declining population. But a com- “We’ve been trying to fill any void munity-based effort to rebound has that we can to help the community,” THE HOOD yielded positive results. Welsh said. “There are some struggles Select recent investments in Brightmoor: Community gardens are thriving there, and social and civic engage- in Brightmoor. Thousands of dilapi- ment is important to this communi- Ⅲ Aid to transform Brightmoor into a healthy, safe and dated homes and commercial build- ty. The business engagement is one supportive environment for families ings have been demolished. Home- part of the puzzle, but creating a Investment: $10 million ownership programs are encouraging community partnership is critical as Investor: Skillman Foundation Good Neighbors Initiative those with some do-it-yourself skills well.” Status: 2006-ongoing to rehabilitate the area’s housing The Artist’s Village, for example, a Ⅲ Business coaching services for small-business owners stock. series of converted warehouses, is be- Investment: About $350,000 There’s even a new effort by an ing used as a large community center. Investor: TechTown Detroit Oregon-based human milk startup to Sometimes it houses pop-ups, hosts Status: 2012-ongoing establish a hub in Brightmoor to en- karate classes and opens its doors for Ⅲ courage African-American lactating artists who create pieces to display in Blight removal from nearly 500 lots Investment: $500,000 women to donate their breast milk to the area. Investor: Detroit Blight Authority other infants in need. The company “There are a lot of things starting Status: Completed wants to bolster low breastfeeding to pop up,” said Crawford, 37, who rates among black women living in has lived in Brightmoor for 15 years. Ⅲ Demolition of commercial buildings and homes poverty. “A lot of people are starting small Investment: $700,000-$900,000 The idea may seem unconvention- businesses out of their basements, Investor: Detroit Blight Authority al, but Brightmoor is building from and they are starting to collaborate Status: In progress the ground up, and a focus on the hy- with other businesses. They are open- Ⅲ New Meijer store perlocal economy is appropriate ing their space up to them and letting Investment: $20 million there, said Michelle Welsh, director them get a feel for having a real busi- Investor: Meijer Inc. of marketing and communication for ness.” Status: Under construction on Grand River Avenue VERIZON CONNECTS DETROIT.

Only Verizon offers America’s most reliable 4G LTE network.

RootMetrics® 1st Half 2014 Verizon was ranked #1 for Independent State Study Overall Network Performance The most comprehensive national in Michigan — again.* mobile network performance study ever undertaken. FOR BEST RESULTS, USE VERIZON.

*Rankings based on RootMetrics® Michigan RootScore® Report covering January–June 2014 for mobile network performance test results of 4 mobile networks as an average across all available network types. The RootMetrics® awards are not an endorsement for Verizon. Your results may vary. Visit rootmetrics.com for details. Network details and coverage maps at vzw.com. ©2014 Verizon Wireless. CDB Living In The D_New CD Magazine sized 10/7/2014 11:50 AM Page 1

Focused on Business. Centered on Detroit.

The GM Renaissance Center, among Detroit’s most iconic Detroit skyscrapers, serves as General Motors’ global headquarters and is home to more than CFFKVKQPCNGORNQ[GGUHTQOJKIJRTQƂNGEQORCPKGUTGVCKNGTU restaurants and professional services. Its Renaissance Conference Center provides 22,000 square feet of well-appointed meeting space and accommodates up to 250 guests.

When it’s time for a business lunch or late meeting, the GM Renaissance %GPVGTQHHGTUUQOGQHVJGEKV[oUƂPGUVTGUVCWTCPVUKPENWFKPI,QG/WGT5GCHQQF Andiamo Detroit Riverfront, and Coach Insignia. After hours, the building is home to highly-anticipated events along the GM Riverfront Plaza and inside its 9KPVGTICTFGP(TQOCUVCVGQHVJGCTVƂVPGUUEGPVGTVQCYKFGCTTC[QHUJQRU CPFUGTXKEGUCPFQHƂEGVQYGTUTGCEJKPICDQXGVJGEKV[VQQHHGTKPVGTPCVKQPCN river views, the GM Renaissance Center does business like nowhere else.

Where do you do business?

gmrencen.com 313.567.3126 GM RENAISSANCE CENTER CDB Living In The D_New CD Magazine sized 10/6/2014 8:44 AM Page 1

Welcoming You Back to the City That Moves the World

As one of the world’s leading automotive suppliers, we know the kind of dedication it takes to be successful, whether it’s delivering outstanding seating and electrical distribution systems to the global automotive industry or showcasing the future of the city that revolutionized the world.

Lear Corporation is proud to sponsor the Detroit 2.0 Homecoming Event as part of our continuing and demonstrated dedication to support the communities in which we do business. Detroit has always been about the power of opportunity and drive unleashing our combined potential and we welcome you home to even greater avenues to reconnect, recharge and reinvest.

lear.com 20141020-SUPP--0061,0062-NAT-CCI-CD_-- 10/9/2014 5:07 PM Page 1

FALL 2014 Page 61 NEIGHBORHOODS AVENUE OF FASHION

BY SUZETTE HACKNEY SPECIAL TO CRAIN’S DETROIT BUSINESS

ave a taste for some corned beef sliders? Maybe you’re shopping for some city-centric streetwear for a son or nephew? Or are you H in the market for a hand-paint- ed, one-of-a-kind piece of art for a living room wall? Look no farther than Detroit’s Avenue of Fashion, a former stronghold for luxury shopping that fell on hard times. Now, however, the stretch of Livernois Avenue between Seven and Eight Mile roads is becoming an urban hub where Detroiters from the surrounding neighborhoods, such as Sherwood Forest and the Universi- ty District, can shop. The Avenue has experienced an infusion of cash from nonprofits for improvements and attracted entrepreneurs who, with that nudge of encouragement, are remaking the area. In spring 2013, the Detroit Economic Growth Corp. won a $200,000 prize from ArtPlace to install art in the vacant storefronts and medians. Its Revolve Detroit program also worked with neighborhood KENNY CORBIN Detroit’s Avenue of Fashion, a stretch of Livernois between Seven Mile and Eight Mile, is making a groups to put pop-up shops — some of comeback with the help of cash for improvements from nonprofits, and new entrepreneurs. which became permanent — in vacant storefronts. “This is a very special place in Detroit,” Michael Forsyth, manager of retail development at the DEGC, said at the time. Back in fashion “And blending art with economic development is an exciting thing. It’s important for Detroit to have great design. That’s the Livernois Avenue district new nature of retail: You have to give people an experience, a reason to come out and not do all of their shopping online.” overcomes hard times The Detroit Lions also have been active 102 cakes and cookies — though you can re- 53 on the avenue as part of its Living for the quest a vegan option. 5 City philanthropic ini- 10 1 Good Cakes did about $100,000 in sales tiative. The Lions part- 75 96 its first year, more than doubling the 3 nered with Hatch De- UNITED STATES 39 CANADA $40,000 investment it took to open the troit to do district store. Anderson said her goal for year two cleanups and install 12 94 75 is $250,000 in revenue. much-needed new signs AVENUE OF 24 FASHION “Business is going great,” Anderson for businesses. said. “The community has been very sup- The investment portive of us. helped entice April An- new generation. She and her wife, Michelle “Livernois has this buzz like Midtown Anderson derson, co-owner of Anderson, who were recently married in used to have — everything doesn’t have to Good Cakes and Bakes, New York, just marked their one-year an- be downtown or in Midtown,” she said. to open on the Avenue of Fashion. “I grew niversary as business owners. After hosting “We’re starting to coin the phrase ‘uptown.’ up in Detroit — being on Livernois is like a successful pop-up as part of the Revolve Come uptown to shop. Come uptown to eat. coming back home,” Anderson said. “My Detroit program, she permanently opened People want something different, and they parents used to shop over here.” in July 2013. Think gourmet, all natural, Anderson, 41, is part of the Avenue’s homemade and sinful cupcakes, brownies, SEE PAGE 62 20141020-SUPP--0061,0062-NAT-CCI-CD_-- 10/9/2014 5:07 PM Page 2

Page 62 FALL 2014 FALL 2006 NEIGHBORHOODS AVENUE OF FASHION FROM PAGE 61 NVESTING IN want it in their neighborhoods.” ON THE WEB I For Donald Studvent, vice president of Q&A/ DONALD STUDVENT the Avenue of Fashion Business Associa- Vice president of the THE HOOD tion and a restaurateur, life on Livernois Avenue of Fashion Business Association: Select recent investments in the Avenue of has become about interception. He’s inter- crainsdetroit.com/detroit2.0 Fashion cepting folks who had become accustomed to driving to Troy to dine at, say, Ruth’s some bumps in the road, and we’ve had to Ⅲ Install art and open pop-up shops in va- Chris Steak House. make some adjustments.” cant storefronts, plus host events and an That happened not long ago, when Bish- But there is no talk of shutting down; in- outpost of the Detroit Design Festival Investment: $286,000 op Edgar Vann, pastor of Second Ebenezer stead, Studvent said he is energized by the Investor: $200,000 grant from ArtPlace Ameri- Church, and his wife were headed to Troy new life on the Avenue and bringing it into ca; $50,000 from Michigan Economic Develop- and noticed Studvent’s Livernois restau- the bistro through new menu items and ment Corp.; $30,000 from the Knight Founda- rant, 1917 American Bistro. They turned improved service. tion; $6,000 from Detroit Design Festival. All their car around and had dinner there. The changes along Livernois are being managed through the Detroit Ecnonomic “That was huge,” Studvent said. “And noticed by area residents, too. Maurice Growth Corp.’s Revolve Detroit program. Status: Completed then they told me how much they enjoyed Telesford, president of the Sherwood For- it. I was just so grateful.” est Association, has lived in his neighbor- Ⅲ Streetscaping Studvent has been in business nearly five hood for five years. He’s a 30-year-old Fer- Investment: $1.5 million years. He took a buyout from Chrysler and ndale High School physics teacher who Investor: Michigan Department of Trans- used the money to purchase the space on wants a business district geared more to- portation overseeing dollars raised from sever- Livernois. He and his wife, Katrina, were ward active and younger Detroiters. al sources some of the first to reinvest in Livernois. “I think some of the businesses are unique, Status: Completed They hit revenue close to $700,000 in 2011 and are working to engage and meet the Ⅲ Street cleanup and new signs but have experienced a 35 percent decline needs of the community,” Telesford said. Investment: $75,000 in the past year and a half. “They’re increasing the diversity of business- Investor: Detroit Lions and Hatch Detroit “It’s been a roller-coaster ride the last es and doing a better job in organizing and Status: Completed couple years,” he said. “We’ve experienced promoting their businesses together.”

ETROIT

CARHARTT. BORN IN DETROIT 1889. CDB Living In The D_New CD Magazine sized 9/30/2014 1:33 PM Page 1

“ HOW CAN WE ALL HELP RE-ENERGIZE DETROIT?”

As a sponsor of the Detroit Homecoming event, DTE Energy is looking to encourage more engagement and investment in the city. And we are doing our part, serving as advisors to the Public Lighting Authority of Detroit to help improve street lighting and make our neighborhoods safer. More than 25,000 LED lights will be added by year-end. We’ve also been enhancing and improving the areas around our DTE headquarters and reworking the energy infrastructure to support construction of the new M-1 light rail system. For over 150 years, DTE Energy has been powering Detroit. Now, we are proud to partner with others to empower Detroit. CDB Living In The D_New CD Magazine sized 10/2/2014 1:32 PM Page 1

INVESTED IN DETROIT’S FUTURE

JPMorgan Chase believes in Detroit. We’ve been doing business there for more than 80 years, and with our new $100 million investment, we’ll be working hand in hand with great local partners to revitalize neighborhoods, tackle blight, strengthen the workforce, grow small businesses, and seed future economic growth. Working with local partners, $20 million in philanthropic investments were already being put to work just 50 days after our commitment.

jpmorganchase.com/Detroit #investindetroit 20141020-SUPP--0065,0066-NAT-CCI-CD_-- 10/13/2014 3:00 PM Page 1

FALL 2014 Page 65 FALL 2006 ESSAY VAHE TAZIAN Urgency of resurgence Build on momentum with intentionality,opportunity,walkability

he Homecoming gathering of the hold — including the 50-block redevelop- of recent Michigan public university gradu- “expatriates” came at an interest- ment around the new Red Wings’ arena and ates have moved out of state, with many cit- ing crossroad for the city and its Orleans Landing, a $60 million residential ing an “urban experience” and convenient storied history. In recent years, project in Rivertown. Above all, it must be public transportation as motivating factors. T Detroit has been much maligned done with a sense of urgency, otherwise the Considering the roster of Homecoming by the national media. There have been too positive momentum will stall. expats — Bloomberg CEO Dan Doctoroff, many jokes about Detroit. And many of us If Detroit simply retained a healthy por- Groupon CEO Eric Lefkofsky, Method are growing skeptical of the value of more tion of its home-state graduates, it would Home Products co-founder Eric Ryan, to “feel good” stories. yield enormous dividends. Nearly 40 percent name a few — it’s clear that metro Detroit For Detroit to solidify its resur- produces some of the brightest and most- gence, it must have a vibrant urban talented minds in the country. core. And that should not occur by For Detroit to solidify its Sadly, that talent is all too often default, but rather by people mak- looking to escape, as the opportu- ing a conscious choice to live and resurgence, it must have a nities closer to home have been work in Detroit and raise their fam- vibrant urban core. And limited. ilies there. That goal starts with re- For that trend to reverse moving blight, establishing crime- that should not occur course, Detroit must help create free neighborhoods and paving the attractive opportunities and em- way for ambitious projects to take by default. SEE PAGE 66

At Sachse Construction, it’sit s nnotot wwhathat we bbuild,uild, itit’ss wwhoho wwee bubuildild fofor...r... WE BUILD FOR DETROIT

DESIGN BUILD • CONSTRUCTION MANAGEMENT • LEED DESIGN EVALUATION • LEED PROJECT CERTIFICATION • GENERAL CONTRACTING • TENANT COORDINATION • POST CONSTRUCTION • PROPERTY MAINTENANCE SACHSE CONSTRUCTION | 1528 Woodward Ave, Suite 600 | Detroit, MI 48226 | 313.481.8200 | www.sachseconstruction.com 20141020-SUPP--0065,0066-NAT-CCI-CD_-- 10/13/2014 4:30 PM Page 2

Page 66 FALL 2014

Employee Benefits & Insurance Proud to be a Compliance & Michigan Actuarial based Analysis Company! COURTESY OF SHINOLA Shinola is one example of the diverse businesses Wellness & that Detroit needs to attract young workers Administration today.

FROM PAGE 65 Ballard Benefit Works, Inc. - Applauding the ployers. A starting point would be to incentivize and recruit to the city diverse busi- Detroit Comeback! nesses, Shinola being one example, that are www.ballardbenefitworks.com appealing to today’s youth. Perhaps public and private partnerships can aid in that ef- ©Ballard Benefit Works 2014 | All rights reserved fort and emphasize the importance of tech- related business getting established in the city. Just imagine the exponential benefits of the next Uber or Airbnb claiming the title “founded in Detroit.” Detroit must also become a more walka- CAN DETROIT COUNT ON AN ble city. Let’s create an infrastructure where a car is not needed to live in Detroit. More ENTREPRENEURSHIP PROGRAM THAT pedestrian-friendly areas will naturally fuel a ACTUALLY WORKS? spurt of small businesses that make cities de- sirable. Add to that an expansive bike pro- YOU BET. gram, with dedicated bike-friendly lanes, more green spaces, privatized (and reliable) PROSPERUS HELPS LOCAL PROSPECTIVE bus transit options, and the groundwork will be in place. ENTREPRENEURS LAUNCH BUSINESSES Detroit is not for everyone. But it has cache and distinct advantages over most IN THEIR OWN COMMUNITIES. THIS U.S. cities. It is entrepreneurial, creative, • PLACED-BASED UNIQUE MODEL PROVIDES LONGER-TERM, inspiring, urban and fertile for growth and • TRAINING new opportunities. Its revered history COMPREHENSIVE ASSISTANCE AND IS points to it being a hallmark for innova- • TECHNICAL PASSISTANCE tion. PAYING OFF WITH REAL RESULTS IN DETROIT. Detroit can be a great city again. But it re- • MICRO-LENDING quires substantial capital, patience, calculat- ASK US HOW. ed risk-taking, businesses relocating to the city, and the return of a lot of brainpower Kimberly Faison that’s been on loan to the rest of the coun- Director of Entrepreneurial Initiatives To Learn More, Call (313) 297 - 0064 try. So, when will you return? prosperusdetroit.org Vahe Tazian is a lawyer currently residing ProsperUS is a program of Southwest Economic Solutions in Stamford, Conn. He attended Groves High School in Birmingham and the University of Michigan. CDB Living In The D_New CD Magazine sized 10/6/2014 4:14 PM Page 1

The Downtown Detroit Partnership is proud to celebrate Detroit’s exciting future by driving a clean, safe and inviting Downtown community. We encourage you to join us in shaping the future.

Downtowndetroit.org CDB Living In The D_New CD Magazine sized 9/30/2014 9:45 AM Page 1 20141020-SUPP--0069-NAT-CCI-CD_-- 10/13/2014 5:18 PM Page 1

FALL 2014 Page 69 FALL 2006 ESSAY ADAM FINKEL Time to build a legacy Expats urged to help make a positive change in Detroit hree of America’s leading public wouldn’t otherwise forge common bonds. Bryan Barnhill is a role model for young health advocates have roots in the Ben Falik took his passion for volun- adults who desire a career in civic service. small Detroit enclave of North- teerism to new heights by building Sum- The Detroit native graduated from Har- lawn. Jeff Sachs, Columbia Univer- mer in the City into a one-stop route for vard University and then returned home to T sity’s leading public health young adults in the area to give back to the help rebuild his city. He now leads talent thought-leader, is one; his mother, Joan city of Detroit. Tens of thousands of vol- development for Mayor Mike Duggan. Abrams Sachs, grew up in the neighborhood. unteer hours later, it’s still going strong. We all can be active participants in Nathan Wolfe, a visiting professor at Dug Song, CEO of Duo Security, has the Michigan’s philanthropic community. The Stanford University who tracks the spread relentless focus to go well beyond building 21st century has not only made it easier for of infectious diseases worldwide, is anoth- one of the state’s most promising ventures. entrepreneurs to ship meaningful ideas, it’s er; his father, Chuck Wolfe, called that The highly technical entrepreneur isn’t just allowed everyday donors and doers to im- street home. creating jobs, and mentoring younger en- pact our world in a meaningful way. Lawrence Brent Brilliant, president of trepreneurs, but also turned his two- Let us define ourselves as a state full of the Skoll Urgent Threats Fund, lived near- decade dream of an Ann Arbor-skate park citizens who care so much about doing by. He is now 70 and listed among Time into a reality this past summer. things better and shipping something magazine’s 2008 100 Scientists and Faye Nelson showed the power of our meaningful. Thinkers. His father owned Brilliant Music, collective engagement through her years Sometimes leaders spend a lifetime on West Eight Mile Road and Livernois leading the Detroit Riverfront Conservancy, building their dreams into a legacy. Now there’s also an increasing amount Avenue in Detroit, 5,500 miles from his turning our waterfront into a welcome mat of philanthropists who use their time and Russian roots. for residents and visitors from around the money in more entrepreneurial ways. They All three have devoted their lives to a world. She continues that work while now understand a few minutes at a coffee stop calling that makes their hometown proud leading the DTE Energy Foundation. in the morning can be used to invent a bet- and have been back to visit their home- Noam Kimelman, another social entre- ter way. town over the past few years. Like millions preneur, moved to Detroit after his gradu- Four years ago, a few minutes of relent- of former Detroiters with pride in the land ation from the University of Michigan to less focus helped raise the funds to launch where they were born, they can see that start Detroit Food Academy and Fresh Cor- the Moishe House, a local residential com- there is something special here. ner Café, a nonprofit and for-profit en- munity that created a welcome mat for The time is ripe for expats like them to deavor that create healthier food options other young adults. The house planned lend a hand back to their hometown. Not for Detroiters. The Boston native is show- 100 programs that led to many positive only because it’s a meaningful thing to do, ing how creative thinking can fill large, un- connections, including a marriage. Last but because America’s ability to empower met needs. week, a financier with no connections to future generations of leaders that care is Detroit stepped up to subsidize three years one clear way the United States will set it- of this house’s existence in Detroit. self apart in the 21st century. Why would a very successful financier Our city is not without examples of ded- with zero Detroit connections choose De- icated leaders and role models who have troit right now? He recognizes how impor- left a legacy for future generations. So, too, tant it is in the 21st century to create a there are many working tirelessly right platform in Detroit where others can spark now to let future generations inherit a positive ideas, here and now. more promising future. And he sees the correlation between Think about the legacy of Eleanor Jo- strong communities and a prosperous na- saitis. Her creation of Focus: Hope showed tion. It’s a mindset to empower communi- Michigan the importance of empowering ty leadership for future generations. entrepreneurs so that positive initiative Our city is not without Donors make it possible. Leaders make could help to fight adversity, create jobs it happen. and chart a better life for thousands. examples of dedicated Judge Damon Keith, who sits on the U.S. Adam Finkel is a partner at Orfin Ven- 6th Circuit Court of Appeals, is a role mod- leaders and role tures in Bloomfield Hills. He grew up in el for thousands through his commitment models who have left metro Detroit, where he serves on several lo- to justice, inspiring others to build bridges cal boards and assisted with outreach for the between generations and groups that a legacy. Detroit Homecoming. 20141020-SUPP--0070,0071-NAT-CCI-CD_-- 10/13/2014 3:37 PM Page 1

Page 70 FALL 2014 EDUCATION 1990-2014 Making the grade Quality schools crucial for Detroit to thrive

n 1990, more than 200,000 children in had in 1990. Yet some of the best-perform- Everyone agrees that without quality Detroit attended one of 275 schools led ing schools still have empty seats. schools, Detroit cannot thrive. So what can under a centralized Detroit Public “Supply and demand are not aligned,” ac- fix this picture? Schools system. cording to a briefing paper by the Detroit- Excellent Schools Detroit is a nonprofit that I In time, many of those schools were based Skillman Foundation. To make it worse, measures quality among the city’s schools and failing children. Charter schools — and “school success is incentivized by enrollment, helps parents find good choices for their chil- competition — were supposed to be the not academic outcomes for kids. We have no dren. Its CEO, Dan Varner, has spoken pub- panacea, forcing traditional public schools to strong standards; Michigan has some of the licly about having Detroit’s mayor play more improve and compete for students as parents poorest quality standards in the country.” of a central role in education, with an ability to shopped for better outcomes for their kids. Despite a handful of high-performing K-8 open and close schools (including charters) That hasn’t happened — at least not to the and high schools, the outcomes are just not and coordinate transportation. level originally envisioned. And Detroit’s what they should be. But there are promising Currently, Varner said, if population population loss has reduced the number of signs: High school graduation rates are up 10 growth or poor-quality existing schools in a school-age children, too. percent citywide, and in some neighborhoods sector of the city would point to a need for a Today, more than half of the 100,000 chil- by 30 percent. About 50 percent of high school new school, as many as 12 authorizers — dren in Detroit attend a charter school. (See students have been exposed to the workplace mostly state universities — might be in the chart, Page 72). The math does not add up: through programs, internships or project- mix. Having a central authorizer could en- Detroit has 50 percent fewer kids than in based programs. Some schools are use “blend- sure the best-performing school operators 1990, but they are spread across 230 build- ed” learning models, incorporating technolo- would operate in Detroit, he said. ings — or 85 percent of the number Detroit gy to bring students to grade level. The idea is far from reality, he cautioned.

Butzel Long proudly celebrates 160 years of trusted service. Committed to Detroit for 160 years. We’ve served U.S. presidents and industrial geniuses. Helped create auto companies and telephone giants. And established a trust that has remained unchanged for a remarkable 160 years. From the days when steamships ruled the waves, through today as the entire world moves at the speed of light, the tenacious attorneys of Butzel Long have provided unparalleled legal counsel and advice to clients worldwide on every issue under the sun.

We were there to deal with the impact of the industrial revolution, and we’re here today to deal with the challenges and complexities that businesses confront in a global economy. Along the way, we’ve proven what it means to lead. We’re more determined than ever to give our clients nothing but the best advice. In return, we earn their trust, day after day, year after year.

Trust stands the test of time. And we thank Detroit and the world beyond for always allowing us to do our best.

Trust. Always. butzel.com 20141020-SUPP--0070,0071-NAT-CCI-CD_-- 10/13/2014 3:37 PM Page 2

FALL 2014 Page 71

“The mayor has got to want it (the authority),” Varner said. And any change in charter authorization or school adminis- DPS charter Ferris State Northern Mich. Suburban Dist. tration would require legislative approval in Lansing. Varner acknowledged there is 1 school 360 students skepticism about having a Detroit mayor 12 schools play a role. “Some are asking: ‘What if 6,500 students 12 schools 12 schools 3,500 students 4,200 students Oakland Univ. 11 schools there’s a bad mayor?’ ” 2,400 students Gwendolyn Butler, a Mumford High EAA charter Wayne RESA Private schools School graduate who is president of 6 schools 3 schools 3,900 students Chicago-based Capri Capital, specializes 1,000 students 8 schools in urban real estate development. After 1,000 students Saginaw Valley attending The Detroit Homecoming in Bay Mills September, she hopes the city can focus Grand Valley 2 schools on creating strong educational opportu- 1,400 students nities in key neighborhoods to attract 22 schools CMU more residents. 19 schools ? students “I would say to my own family not to 7,300 students fear gentrification. It brings people with more resources who can help parents who 21 schools Eastern Mich. 95 schools 9,400 students have been trying to find the best school 48,600 students options for their kids demand more atten- 17 schools Lake State 8,600 students 6 schools tion for the schools. … Parents with re- 1,600 students sources combined with parents without Detroit’s public 5 schools economic resources but a keen interest in education system 3,700 students the best public education for their kids can make things better for every child.” 230 schools | 103,356 students — Mary Kramer Courtesy of the Skillman Foundation CDB Living In The D_New CD Magazine sized 10/13/2014 9:18 AM Page 1 20141020-SUPP--0073-NAT-CCI-CD_-- 10/14/2014 4:34 PM Page 1

FALL 2014 Page 73 FALL 2006 EDUCATION Q&A: RALPH BLAND, NEW PARADIGM FOR EDUCATION Upward bound Detroit Edison Academy sets students’sights solely on college

he acceptance letters — all 94 of school year. We chose that as opposed to a student having a 4.0 in order for them to them — line the wall of the community college because we wanted them survive and be successful. school. Proof that the Detroit Edi- to see the rigor that they will see in the post- son Public School Academy secondary environment sooner. What challenges will students face? (DEPSA) is what’s right with edu- Some of our students in our first graduat- The challenges they will face will definite- Tcation in the city of Detroit. ing class have already graduated with 16 ly be magnified 10 to 20 times more than The letters are from all over the country: credits from Harvard and 16 from the Uni- the challenges we’re facing today. Brown University, the University of Michi- versity of Michigan, which are enough cred- I don’t just look at Detroit, I look at it on gan, Amherst College, Howard University its to be considered a sophomore at any uni- a global scale. They might need to fly to Chi- and the U.S. Military versity that they will attend. na tomorrow, and then fly back to Ohio, Academy, to name a few. and end up back in Detroit by Friday. That Not only did every mem- How will schools of the future be can be a regular week. A student is going ber of the 2014 graduat- structured? have to know more than one language to be ing class, DEPSA’s first, I think students will have more freedom, successful. get accepted to college, more independence, when it comes to they also generated $4.5 courses. I don’t think there will be a regular What does every child need? million in scholarships. structured day where you will arrive at 8 in Every child needs a good, quality educa- The charter school the morning, then go to your next period at tion — a good foundation. If a child receives Bland brainchild of Michigan 9. I think they will be able to gain more ac- a good, quality education, then they are go- Future, a nonpartisan cess to anytime, anywhere learning from ing to be able to be a critical thinker, an ana- nonprofit funded by Michigan foundations, home, the library, anywhere that they are. lytical thinker. Every child deserves to be in is east of Detroit’s Eastern Market. They will be able to learn at their own pace. a good environment. Crain’s Detroit Business sat down with I think they will be technology driven. Ralph Bland, superintendent of the New I still think, as I mentioned earlier, you What are the economics of education Paradigm for Education, which manages can’t cut out the liberal arts. I think coding today? DEPSA, to talk about education. Answers will become as important as math. I think I think we are definitely not providing the have been edited for length and clarity. that will be a critical area. I think you will proper resources to our educators. I think still have theme schools, where kids can go if resources are scarce … and I think they do Where do you see education going in they want to focus on medicine to become a not have to be scarce. We have to look at the city? doctor or they want to focus on the per- what we really want at the end of the day. I think it’s crucial that when we look at forming arts. the landscape of education in Detroit, we Are kids going to forget what a library have to be cognizant not to look at educa- Do you think our educators in the city is in the next decade? tion only from a perspective of grades nine get the best out of people? I think kids have forgotten them now, but through 12, and instead really start to focus No. We need to put the adults as well as I hope not. Because libraries are essential to on college graduation. students in the best environments that they helping our students become well-rounded. Here at Detroit Edison, that’s all we focus can learn and think in. In the future, we def- I think they are essential if our students are on — college graduation. We don’t speak of initely have to close the gap on the link be- going to move forward and continue to be high school. We don’t speak of the credits tween schools and careers. Schools moving competitive. that you have to earn to get your high school forward need to really focus on those innov- diploma. That’s rarely mentioned because ative jobs of the future. Are the city government and school we focus on college graduation and the skills We have to get students more exposure. board doing their jobs when it comes to you will need to obtain for that. We have to get them more into the worlds education in this city? For example, we send kids to Harvard of the Dan Gilberts and Warren Buffetts and I don’t think it’s a matter of them doing University (for a seven-week summer pro- look at what’s driving them and their move- their job right or wrong. I think it’s a matter gram) and they earn eight college credits, ment to business and entrepreneurship. We of the adults being accountable and being where they’re actually in class with other have to dig deeper and expose students to responsible, making sure that the students students who are in college. In addition to that. We also have to expose students to receive the quality education that is their that, students are able to enroll at the Uni- wildlife, the arts and travel. Because at the civil right. versity of Michigan-Dearborn during the end of the day it’s going to take more than a — Zack Burgess CDB Living In The D_New CD Magazine sized 10/6/2014 3:59 PM Page 1 20141020-SUPP--0075,0076-NAT-CCI-CD_-- 10/14/2014 4:49 PM Page 1

FALL 2014 Page 75 EDUCATION FIXING K-12 Back to schools Broad’s mission evolves to focus on education leaders

li Broad’s best-known educational investments here are perhaps the $20 million he spent in 1991 to en- dow the Eli Broad College of Busi- ness at Michigan State University, followedE later by $33 million to help launch and improve the Eli and Edythe Broad Art Museum there. But the Detroit Public Schools have received his persistent efforts. Broad, the son of immigrant parents, and his wife, Edythe, are both products of DPS. He’s a Central High graduate; she’s a Mumford alum. “You get the biggest bang for the buck by improving K-12 education,” Broad said in a panel discussion at the Detroit Homecom- ing. “My wife and I attended Detroit Public Schools, and I went on to MSU. … I thank my education for my success in the world of business. … We want to give back.” And that emphasis is on the types of schools the Broads attended. The mission of the Los Angeles-based Eli and Edythe Broad Foundation is “working to ensure that every student in an urban public school has the opportunity to succeed.” Broad, 79, approaches philanthropy like an entrepreneur: He funds ideas that seem promising but is willing to walk away if they AARON ECKELS don’t work out. Eli Broad, shown while speaking last month at the Detroit Homecoming, says his goal is to give back A $6 million gift a decade ago to MSU to urban public schools based on his own experience as a Detroit Public Schools graduate. provided scholarships for DPS students to come back and teach in the district. While ment began in August 2012, and students since it began operating three years ago. Its the gift did in fact train teachers, it had lim- attend 210 days a year, 40 more than most controversial superintendent resigned ited success because DPS enrollment was other Michigan students. Individual learn- abruptly in August, and also that month it declining and most graduates couldn’t get ing plans are developed with an emphasis of mailed letters to parents in suburban hired. mastery of current lessons before moving on school districts inaccurately implying their Broad also attempted to meet with Gov. to the next. children had been “assigned” to an EAA Jennifer Granholm to discuss possible edu- The Michigan Educational Excellence school. cational initiatives, but “I couldn’t get any- Foundation was created as the fundraising Broad said the EAA is a good idea but is where.” entity for the program. Broad said his foun- still a work in progress, demonstrating some He then approached Gov. Rick Snyder — dation contributed $10 million and that an- “destructive competition” for students, but “I’m a lifelong Democrat, but we need to be other $10 million came from New York also with schools showing academic party-blind on education,” he said — and City-based Bloomberg Philanthropies, $6 progress. had discussions that led to the Education million from the New York City-based The Broad Foundation also has pledged Achievement Authority of Michigan. Robertson Foundation and $1 million from $1 million in matching funds to the Detroit The EAA took on the worst-performing the New York City-based Carnegie Founda- Scholarship Fund, created by the state and 15 schools in Detroit — nine tion. It also has received grants from major administered by the Detroit Regional elementary/middle schools, three of which foundations, including the Seattle-based Bill Chamber. are charters, and six high schools — with and Melinda Gates Foundation. the goal of improving them. EAA manage- The EAA has had some ups and downs SEE PAGE 76 20141020-SUPP--0075,0076-NAT-CCI-CD_-- 10/14/2014 4:56 PM Page 2

Page 76 FALL 2014 EDUCATION FIXING K-12 FROM PAGE 75 as well as study what has worked and not “We decided not to look at what was hap- The fund creates a tuition-free path to an worked in other challenged urban environ- pening in the classroom, but in local gover- associate degree or technical certificate to ment.” nance and management,” Broad said. “We Broad has been pursing philanthropy started looking at school boards and were any Detroit student graduating from a De- since 1999. appalled. They were filled with political troit high school. He began a career as an accountant after wannabes, well-meaning parents or union Broad said he’d like to see more high- graduating from MSU in 1954, but soon representatives.” level national charter operators in Detroit branched out into homebuilding, creating So the Broads decided to create an insti- and also endorsed a plan floated by Excel- Kaufman and Broad in Detroit in 1956, with tute to train school board members, which lent Schools Detroit that would create a Donald Kaufman, the husband of a cousin did not have the hoped-for results. They “portfolio district” for DPS, which would of Edythe’s. The company went public in then turned to school district management. coordinate enrollment, safety, transporta- 1986 and now is known as KB Home, based That effort has been more successful. tion and other common infrastructure for in Westwood, Calif. The Broad portfolio now includes a resi- all public schools in the city, including In 1971, Broad and Kaufman acquired an dency in urban education and a leadership charters. insurance company for $65 million that be- development program aimed at school The DPS opposes the plan, which would came SunAmerica. The company was sold leaders. require legal changes, but Broad said he be- to AIG in 1999 for $18 billion. The foundation also awards $1 million in lieves a proposal for such a district will hap- “When we sold our company to AIG, we scholarship money each year to urban pen by February. put a lot of money into our foundation, and school districts that have shown high per- Dave Murray, deputy press secretary for then we looked at defining what is our formance in reducing the achievement gap Gov. Rick Snyder, would not comment di- biggest problem?” Broad said in an inter- experienced by low-income students and rectly on the proposal, but said Snyder “has view with Crain’s. students of color. A $250,000 prize honors said it is important to consider all options After looking at China, Japan and other charter schools. concerning the Detroit Public Schools and countries, “we realized we needed to edu- It also offers toolkits for districts for looks forward to having a broader dialogue cate our children,” Broad said. things such as evaluating charter applica- about alternatives at the end of the year or The result has been evolving investments tions, evaluating employees and creating beyond. He wants to meet with the com- as various approaches were tried, tested and metrics dashboards. munity to hear its opinions and concerns, sometimes discarded. — Cindy Goodaker

! ! " # ! # ! ! CDB Living In The D_New CD Magazine sized 10/9/2014 1:58 PM Page 1

7KDQN

Crain’s Detroit Business was proud to convene The Detroit Homecoming Sept. 17-19 where 160 expats returned to Detroit to reconnect and reinvest. We are grateful to the companies and organizations who contributed to the success of the program. Learn more at detroithomecoming.com

WITH GENEROUS SUPPORT OF DIAMOND SPONSORS

PREMIER SPONSORS

GOLD SPONSORS

SILVER SPONSORS

BREAKFAST SPONSORS LUNCH SPONSOR AFTERGLOW SPONSOR

SUPPORTING SPONSORS

WATER BOTTLE SPONSOR CHARGING STATION SPONSOR

PATRON SPONSORS Roger S. Penske 20141020-SUPP--0078,0079-NAT-CCI-CD_-- 10/14/2014 4:11 PM Page 1

Page 78 FALL 2014 FALL 2006 EDUCATION Q&A: KYLE SMITLEY, DETROIT ACHIEVEMENT ACADEMY Smaller is better Achievement Academy focuses on class size, teachers

n an old church in the Grandmont Rosedale section of the city, Kyle Smitley founded the Detroit Achieve- ment Academy with one vision: to meet — and exceed — the basic needs Iof small children. So far, so good. The school, in its second year, has added a second-grade class after starting with four kindergarten and first grade-level classes and one arts class. Most importantly, Smitley’s students are testing in the 95th percentile nationally in math. The 29-year-old lawyer and entrepreneur has even drawn the attention of Ellen De- Generes, for whom the school’s library has been named, after receiving a $50,000 dona- tion from “The Ellen DeGeneres Show” and Shutterfly, an Internet-based image publish- ing service. Thanks to their efforts, the DAA is stocked with supplies and books. Crain’s Detroit Business sat down with Smitley to talk about the future of education in the city of Detroit. Answers have been edited for length and clarity.

Your kids are testing very high; they’re ZACK BURGESS doing very well. Defiance, Ohio, native Kyle Smitley launched and ran barley & birch, an organic children’s clothing Yeah … I always say it’s not rocket science company in California, before moving to Detroit. to do the right thing and make decisions attention to school culture and put kids with kids at the center. It’s really simple how It’s really simple how first, everything will come into line. you deliver results with kids: great teachers, small class sizes and a really holistic level of you deliver results Do you think we get the best out of peo- support system for them and their families. That’s expensive. So many education net- with kids:great ple here in Detroit, from an educational works are clogged with for-profit networks teachers,small class standpoint? where they really can’t do that because they I don’t know. I think when the average is- are in it for the margins. We just put all of sizes and a really n’t exceptional, I think it’s really easy for our money into the classrooms and invest everybody to consider mediocrity OK. I heavily in their success. holistic level of think it’s really hard when there aren’t a couple of models of excellence holding every- How do you think schools of the future support system for body accountable, holding their feet to fire. will be structured? How do we move them and Competition is always a good thing. I think through a system that’s under fire? it makes everybody better. I think it’s tricky. I don’t know … being really optimistic, their families. if I could write my own future for Detroit, What challenges will current students the schools would start taking note of really secret sauce for our school is that we have face? small schools and how they are successfully created a culture where our kids have be- I think that’s something that we struggle educating students. I think the big part of come obsessed with coming to school. with as a school … a lot. Thinking about being successful is the school culture. The They love coming to school. When you pay where our kids will fit in with the context 20141020-SUPP--0078,0079-NAT-CCI-CD_-- 10/14/2014 4:11 PM Page 2

FALL 2014 Page 79

of the city. Does the charter school model increase What is your main concern about educa- For example, people talk about talent creativity overall vs. the public school tion for students all across the city? draining from Michigan so frequently. model? I lose sleep at night thinking about the And we want to make sure that we’re not I always say that stereotyping on the type future of Detroit’s kids. I want every kid adding to that. I hope my kids are the ones of governance of education is like stereotyp- not to have to ride the bus two hours every driving the bus of the turnaround. I hope ing based on eye color, because you never morning to get to school. And I want the that our kids are the ones that make the know what you’re going to get. Charters his- teachers to know that student and the best choices. The ones who believe in their torically have given schools the liberty to names of their parents. I want the class neighborhoods. The ones who don’t leave choose how they educate kids. for greener pastures to California or New sizes to be manageable. My biggest concern Often this means, for example, in a dis- York. I hope that they stay and get their is that it’s becoming a factory and not a hands dirty and lead their communities. trict with 14,000 kids, it’s going to be a lot well-oiled one in Detroit. harder for a teacher to come to an adminis- trator and say, “I think this curriculum that What are the economics of education? we’re using for our kids is not working and What should be done to increase the The economics of education are brutal in can we change it.” awareness that kids have to become Michigan. It is expensive to run a charter better educated? school — doing things right. That’s just never going to happen. But It starts with schools and the support and I used to really get frustrated with myself here a teacher can just walk into this room the messaging that they send home with stu- that I couldn’t keep our budget within the and say, “Hey, Kyle, this curriculum that dents. How we talk to parents about how state aid, that we spend more per pupil than we’re choosing is just not working and I they can get their kids excited about school. we receive from the state. I’m responsible want to do something different.” And I al- for raising that myself. And I used to say this ways say, great, then do something different. We say how a parent treats school when isn’t scalable or sustainable. Then I realized Because for us, it’s not a big deal, because we their kids are in kindergarten is a big indica- that other states in the country fund their always want to do what’s best for our kids. tor of how they will treat school down the schools (much more) than Michigan does. Creativity is very important, and we can road and for the rest of their lives. It starts So it’s important that we rely on private do- adapt very easily whereas bigger districts with the parents and with us. nations. can’t. — Zack Burgess

A Partner With Communities Where Children Come First

WKKF is proud to partner with diverse leaders, grassroots organizations, institutions and other community partners in Detroit to ensure that all children are well educated, healthy and living in economically secure families.

wkkf.org 20141020-SUPP--0080,0081,0082,0083-NAT-CCI-CD_-- 10/14/2014 5:16 PM Page 1

Page 80 FALL 2014 FALL 2006 COMMUNITY DOERS IN DETROIT Small programs,big ideas 8 groups with limited resources make mark in Detroit

BY AMANDA LEWAN SPECIAL TO CRAIN’S DETROIT BUSINESS

etroit’s billionaires may capture the headlines, but they are only part of the story of Detroit’s future. This is a city of doers making outsized im- Dpacts with limited resources. Meet eight small organizations that make the city a better place to live. Back Alley Bikes thehubofdetroit.com What it does, in a Tweet: Teaches more than 400 youths per year how to build and repair bikes so they can hit the roads of #Detroit. #BackAlleyBikes With recent bike lanes opening in Mid- town and the popularity of the weekly Slow LARRY PEPLIN As director of Back Alley Bikes, Heather Nugen hopes youths who learn how to repair old bicycles Roll rides, the Motor City is starting to pass along those skills in their neighborhoods. move on another set of wheels. To make sure the love of two wheels doesn’t derstand how you feel when your voice isn’t escape kids, Back Alley Bikes teaches youths Deep Dive Detroit heard and you’re left out of processes to im- how to repair old bicycles — and then lets deepdivedetroit.com prove your neighborhood.” them keep their project. The program, which What it does, in a Tweet: The @Deep Hood now extends her skills as a consul- is a part of the Hub of Detroit bike shop, has DiveDetroit acts as a bridge between new tant addressing cultural issues at play in the put more 400 kids on bikes this past year. and old #Detroit by getting them talking workplace. Organizations such as the Skill- “When you give a kid a bike, you give and building trust. man Foundation and Challenge Detroit them freedom to go somewhere,” said Di- Lauren Hood lives a life through two have hired Hood for internal team building rector Heather Nugen. and communication exercises. Many of the youths Nugen sees are stuck identities: one as a “new Detroiter” and one as an “old Detroiter.” She was born and “The organization has grown into provid- relying on rides or needing money to pay for ing solutions to organizations,” Hood said. transportation. Back Alley Bikes gives them raised on the northwest side of Detroit and now works for one of Detroit’s most promi- “Really the solution is always opening up or an opportunity to take responsibility for creating space for safe conversation. Then their freedom. nent tech firms, Loveland Technologies, as the organization takes it from there.” Participants under 10 can receive a bike for its community engagement manager. Every To date, several hundred Detroiters have free; those over 10 years old, however, must day, she sees the divide between her two participated in conversations led by Hood, earn their bike by learning how to fix it up. worlds and wants to bring them together. “We’re teaching them skills and they of- So Hood started Deep Dive Detroit as a and she hopes to continue to bring together ten go back to their own neighborhoods to series of weekend-long events about issues those who need their voices heard with continue to teach these skills to other in the city, including race, equality and gen- those who are making change happen. youth,” Nugen said. trification. Hood would ask: What happens Profits from the Hub’s sale of used bikes to old Detroiters, those living in the city for Detroit Food Academy and parts help support the nonprofit, and years, when their city embraces rebuilding detroitfoodacademy.com together both entities are led by more than initiatives? And then let the group engage in What it does, in a Tweet: The @DETFood 100 volunteers. open, authentic dialogue. Academy teaches hundreds of youth lead- “We’re a collectively owned organization. “I’ve been on both sides of the problem,” ership and entrepreneurship skills through I’m just one part of the wheel,” Nugen said. Hood said. “I’m a native Detroiter and I un- growing food businesses in #Detroit. 20141020-SUPP--0080,0081,0082,0083-NAT-CCI-CD_-- 10/15/2014 2:51 PM Page 2

FALL 2014 Page 81

let them drive the conversations, pick the food we cook with and manage their own budgets.” The nonprofit has reached almost 300 youths, employed 150 young people, and assisted 20 students in the Rusciano Small Batch program to further develop their businesses. One of the businesses, Mitten Bite, sells a no-bake oatmeal snack that is being offered to local coffee shops and online retail stores. Rusciano believes it will grow more this fall. “As they grow their businesses, we support students who want to grow to the next level,” Rusciano said. “We are looking to help make their products more available.” Over the next year, DFA is looking to expand its reach into more schools. “We want to step up the number of young people stepping up to leadership roles. It’s very exciting for us,” Rusciano said. Detroit Repertory Theatre detroitreptheatre.com What it does, in a Tweet: Serves up thought-provoking theater in #Detroit’s forgotten core. #DetroitRepertoryTheatre Barbara Busby chose to start a theater in Detroit more than 50 years ago, when she had just finished her degree in stage theater from Wayne State Uni- versity. The Detroit Repertory Theatre has become the oldest alterna- tive professional theater in Michigan, reaching an attendance of 60,000 in the past two years.

LARRY PEPLIN Each season, Busby Lauren Hood’s dual identity as a “new” and “old” Detroiter helps her build bridges between city Busby hires local theater profes- residents in Deep Dive Detroit. sionals, stage managers and a crew to put on four shows and about Jen Rusciano returned to Detroit to feed my now works with 10 local schools, offer- 180 performances. The theater is not in her passion for improving food systems but ing an after-school program and a summer downtown but in the Dexter-Linwood soon realized there was a greater need for employment option, where students learn to neighborhood, just west of Highland Park at teaching youths. cook, plan large community dinners, and the Davison. The theater has played a vital She was working with school cafeterias, operate their own pop-up food markets. role in stabilizing the area, which helps draw hoping to increase locally grown and healthi- DFA also offers a six-week summer pro- some funding from local corporations and er food options, but discovered that students gram for academy graduates, called Small foundations. But it’s still a struggle to stay needed to understand more about these op- Batch Entrepreneurship Camp, that pays a afloat and keep up attendance numbers. tions before they wanted to eat them. stipend and helps them develop their own “It’s been especially challenging the last In 2011 she co-founded Detroit Food food business with a social mission. three or four years when everything flopped Academy as a nonprofit leadership develop- “We want students to develop their own over,” Busby said. “Everyone is struggling. ment and entrepreneurship training pro- leadership skills building their own triple gram for Detroit high schoolers. The acade- bottom line business,” Rusciano said. “We SEE PAGE 82 20141020-SUPP--0080,0081,0082,0083-NAT-CCI-CD_-- 10/15/2014 3:57 PM Page 3

Page 82 FALL 2014 COMMUNITY DOERS IN DETROIT

FROM PAGE 81 gether they’ve helped after taking classes. We bail out banks and automotive compa- more than 600 Detroiters nies, but we don’t bail out the arts.” learn basic programming Green Living Science This upcoming season features four world skills that are applicable to most programming greenlivingscience.com premieres, including “Curtain Times” and a What it does, in a Tweet: The @GLS humorous show titled “Buzz.” jobs. The group has hosted 75 classes on topics Detroit teaches kids science and recycling Busby, who was born in Detroit, acts in that include Intro to as a step toward a cleaner #Detroit and and directs many of the plays and said she Wordpress Development, stronger communities. #GreenLiving believes theater can thrive in Detroit. Carlson CSS and HTML. Detroit is the largest city in the United “I would think it would be an attraction as Carlson herself was just beginning to States without a recycling program. Yes, we are now kind of resurging again,” she said. learn to code, and through the program she learned enough skills to land herself a job as curbside recycling is coming, but it’s not here Girl Develop It Detroit a developer. She currently works at Detroit yet. For years, the lack of service meant that tens of thousands of children were growing girldevelopit.com/chapters/detroit Labs and is the director of its newly created up without basic recycling knowledge. What it does, in a Tweet: Coding is sexy apprenticeship program. That started to change in 2006 when with @GDIDet, which has taught 600 De- “My favorite thing about Girl Develop It is Matthew Naimi launched Recycle Here, a free troiters computer-programming skills. that students come through our doors for all kinds of reasons, but we can offer something drop-off recycling option for Detroiters. He When Michelle Srbinovich, general man- meaningful to each one of them,” Carlson said. also started working with youths and in De- ager of WDET 101.9 FM, wanted to learn You’ll find Girl Develop It hosting classes troit Public Schools to teach the importance of computer programming, she knew she at places like Great Lakes Coffee and Socra recycling but realized the mission needed to be needed help — and assumed other women Tea in Midtown as well as the headquarters supercharged if he wanted to reach enough might, too. She reached out to acquaintance of software development firm Atomic Ob- kids to make an impact. So in 2010, Recycle Erika Carlson to launch a Detroit chapter of ject. Most classes are at an introductory lev- Here formed the nonprofit Green Living Sci- Girl Develop It, a national nonprofit dedi- el, but the impact has been tremendous. ence just to work with kids and community. cated to teaching affordable coding classes. The group has 1,150 members, and many “Over and over we hear parents say they That was almost two years ago, and to- have landed computer programming jobs never thought they’d start recycling, but

JUMP IN WITH US. WE ARE GLOBAL, with more than 100 clients in 20 states & 6 countries. We are a TOP 60 PUBLIC RELATIONS and TOP 20 INVESTOR RELATIONS firm. Our AWARD-WINNING work includes four NATIONAL Silver Anvils and the Bulldog Reporter INNOVATION OF THE YEAR. And we’re Made in Michigan!

www.lambert-edwards.com

PR Week Small Agency PR News Small Firm of the Year of the Year 20141020-SUPP--0080,0081,0082,0083-NAT-CCI-CD_-- 10/15/2014 2:48 PM Page 4

FALL 2014 Page 83

Fall productions wrapped up last month, and the 2015 season starts next spring. “My favorite show is always the next one. You have to keep looking forward,” White said. Eight Mile Boulevard Association eightmile.org What it does, in a Tweet: EMBA shows the region that Eight Mile is a destination for business, from Meijer to newly renovat- ed Knudsen Park. #Detroit The infamous Eight Mile Road is a border that beckons change. Jordan Twardy, executive director of the Eight Mile Boulevard As- sociation, sees it as a connection point for the city and nearby communities, and vital for business growth. KENNY CORBIN Says Rachel Klegon, executive director for Green Living Science: “Recycling is something youth can The association was founded two decades practice every day, and they can see the difference it makes.” ago to function as an economic development engine and business organization. It has many their kids learned about it in school and just ter time for Detroiters to engage with Shake- interested parties because the organization kept talking about,” said GLS Executive Di- speare. The stories are timeless for the Mo- serves 11 communities and three counties. rector Rachel Klegon. tor City. “Eight Mile Road is sort of a jurisdiction GLS now works in 22 Detroit schools “Shakespeare makes sense as a business jungle,” Twardy said. teaching both recycling and science — all on because it is great bait for tourism — a criti- Much of the association’s work is focused a shoestring budget of just $60,000. cal element to a thriving, healthy city,” on helping local businesses and changing “Recycling is something youth can prac- White said. “And Shake- perception of the area and the city. Since the tice every day, and they can see the differ- speare has centuries of Gateway Marketplace development opened ence it makes,” Klegon said. “Once that proven consumer engage- at Eight Mile and Woodward Avenue, that’s starts, the practice of recycling can lead to ment all around the been a little easier. Retailers thought there other things, like cleaning trash and caring world.” wasn’t a need for shop- more for their neighborhoods.” White formed the out- ping in Detroit, but the Students learn the basics of recycling and door theater company in success of the Meijer and are invited to think creatively with the mate- 2013 to bring the arts into Marshalls stores quickly rials at hand. It also engages with the Lin- Detroit’s parks. The group proved them wrong. coln Street Art Park to teach students and White has performed four shows, “Marshalls is now No. among themaudience fa- the community about creative ways to reuse. 1 in sales in the state,” vorite “A Midsummer Night’s Dream” and Now, Green Living Science is working Twardy said. “We’re the more challenging “Othello,” in five with the city to train parents and create chipping away the per- venues, including Grand Circus Park, New ceptions of Eight Mile awareness for the new curbside recycling Twardy Center Park, Mumford High School, The and showing that it’s a re- program. Residents will have the chance to Whitney and Recycle Here. More than 3,000 gional connection point.” opt in to the program but have to pay a one- people have attended the performances. The association’s projects include facade time $25 to participate. “The summer has been great because we incentives for local businesses, cleaning the “We’re really helping that program get off often have the opportunity to perform at neighborhoods, and more recently the reha- the ground,” Klegon said. “We’re working least one show for free, which means people closely with them so residents know they bilitation of Knudsen Park, which is at the who may not otherwise have the chance can can be a part of it.” intersection of Eight Mile and I-75. They’ve engage with Shakespeare,” White said. raised $75,000 to improve the park and en- But White isn’t just an artist; she is also an ticed Tom’s of Maine and singer/songwriter Shakespeare in Detroit entrepreneur. She graduated from Tech- Mike Posner to the cause. The big makeover Shakespeareindetroit.com Town Detroit’s accelerator program and debuts on Halloween. What it does, in a Tweet: Where art thou, was able to start raising initial funds for pro- “There was a half-dozen residents holding #Detroit? More than 3,000 Detroiters find duction through crowd funding and local the park together and mowing this thing, #Shakespeare outdoors via @ShakesintheD. organizations. White also hires local talent even with dilapidated fence and equip- Sam White, founder of Shakespeare in to produce and perform each show, working ment,” Twardy said. “We can’t wait to show Detroit, firmly believes that there is no bet- with more than 40 different local artists. the improvements this Halloween.” CDB Living In The D_New CD Magazine sized 9/30/2014 9:18 AM Page 1

pulse220 is the PROUD ARCHITECTS OF THE DESIGN AND EXECUTION DETROIT HOMECOMING meetings, events & live marketing agency that helps you motivate, communicate with & engage the people that matter most to you.

PULSE220.COM | P 248.200.3900 | DETROIT • CHICAGO • FERNDALE 20141020-SUPP--0085-NAT-CCI-CD_-- 10/15/2014 1:30 PM Page 1

FALL 2014 Page 85 ESSAY SCOTT SELLERS Food for success Expat private equity investor sees advantages in Detroit wenty-four years ago, I flew out must be cost competitive. Detroit’s labor of Detroit and headed to North- costs are competitive today. Detroit also has ern California for college. I have advantages with its low costs of industrial been in the Bay Area ever since real estate and cheap residential costs that T and have spent the past 17 years enable food-processing workers to afford a in private equity, investing in food and con- home, which isn’t possible in many parts of sumer products companies. the country. As part of the Detroit Homecoming con- Available resources: From government ference for expats like me, I had an opportu- officials helping companies relocate to De- nity to return to Detroit to assess the busi- troit to successful business owners mentor- ness climate and to determine whether ing rookie entrepreneurs, there is a culture Detroit is an attractive place for our food- of cooperation and assistance that hasn’t al- focused private equity fund to invest. ways existed in the area. Organizations such With a few exceptions, food processing has as FoodLab Detroit provide guidance and not been a major part of the economy in networking opportunities for food industry Southeast Michigan. However, the area is entrepreneurs. well-positioned to attract food processors. The biggest growth area in the food in- Detroit is in a great location to be cost-com- dustry right now is the natural food industry petitive because of its proximity to raw mate- and better-for-you products. The compa- rials from the Midwestern farm belt, its ample SUZANNE JANIK nies in this sector tend to be entrepreneurial supply of water resources and its numerous Whole Foods opened a store in Detroit in 2013 in nature. Detroit is well-positioned to at- transportation lanes that allow for distribu- and has a second on its way. tract these types of companies. tion to both U.S. and Canadian markets. De- Brian Rudolph, who moved to Detroit troit has always had those advantages, so why by promoting its Detroit roots. Whole from New York to start his chickpea pasta is now a better time to attract food processors Foods opens up a lot of stores each year, but to the area? I found four signs. the Detroit location (with a second on its company, Banza, does not need to look very Entrepreneurial culture: When I visit- way) is the one that it talks about most often far for inspiration. Up the road in Ferndale, ed, I expected to see a downtrodden city with investors. Dave Zilko, who mentors Brian, has helped with a stressed business culture fretting Whole Foods wants to buy local from De- Garden Fresh Gourmet become the No. 1 about bankruptcy and additional job losses, troit companies for its Michigan stores, but fresh salsa company in the United States, but I was absolutely blown away by the opti- it also wants those brands to expand to proving that food processors can be success- mism from all of the entrepreneurs that I Whole Foods across the country. The prod- ful in Southeastern Michigan. met. I heard from auto parts suppliers, a ucts need to meet quality standards and de- It can happen, Detroit. I am a believer. gluten-free pasta manufacturer and even cab liver on their brand promises, but Detroit drivers a genuine belief that Detroit is an at- products will be given preferential treatment Scott Sellers is the co-founder and manag- tractive place to do business. by both retailers and consumers. ing director of the private equity firm Encore There is nothing more powerful than an Cost competitiveness: The food-supply Consumer Capital in San Francisco. He grew American entrepreneur who is committed chain in this country is incredibly efficient up in suburban Detroit and graduated from to make something happen. I have seen the and competitive. A successful company Detroit Country Day School in 1990. combination of willpower and talent lead to the creation of successful companies in Sili- con Valley for the past 20 years, and I now I expected to see a see a similar unbridled optimism and entrepreneurial environment that is attracting downtrodden city with a young, smart and driven entrepreneurs to stressed business culture, Detroit. Branding: “Made in Detroit” is a brand but I was absolutely blown advantage. Detroit is hip. This country wants to see Detroit succeed. Look what away by the optimism. “Made in Detroit” did for Shinola watches. McClure’s Pickles is seeing a similar benefit 20141020-SUPP--0086,0087-NAT-CCI-CD_-- 10/15/2014 4:29 PM Page 1

Page 86 FALL 2014 FALL 2006 DETROIT HOMECOMING A GALLERY OF A GATHERING

Above: Quicken Loans Chairman Dan Gilbert (left) and Berkshire Hathaway Chairman and CEO Warren Buffett chat during their hour on stage together From left: Bloomberg LP CEO Dan Doctoroff, philanthropist and entrepreneur Eli Broad and at the Detroit Homecoming. Right: “Expat” Nicole Curtis, host of “Rehab Addict,” takes batting practice at Comerica Park.

Ideal Group CEO Frank Venegas and Capri Capital President Gwen Butler (above) participate in a panel discussion on diversity, and Carla Walker- Miller (left) talks about her company, Detroit-based Walker-Miller Energy Services LLC, at a Homecoming pitch session.

Photos by Aaron Eckels 20141020-SUPP--0086,0087-NAT-CCI-CD_-- 10/15/2014 4:30 PM Page 2

FALL 2014 Page 87

General Motors Co. CEO Mary Barra (left) and Detroit Mayor Mike Duggan (below) had words of wisdom for the Homecoming attendees.

road and Capri Capital Partners CEO Quintin Primo III take the stage to open the Detroit Homecoming.

ANJANA SCHROEDER This sign featured a word aimed frequently at expats during the three days of the Detroit Homecoming, Sept. 17-19.

he inaugural Detroit Homecoming exceeded expectations for our planning team and host committee. Because of the support from sponsors and our host committee, we helped reintroduce a lot of successful people to T their own hometown in a dramatic and exciting way. We are tracking more than 20 action steps various attendees have made since Sept. 19, and if even half come to fruition, it means new investment in Detroit. We are continuing to add to our database of successful expats so we can invite new people back home for future events. And we’ve received inquiries from around the country from people who’d like to try and replicate Homecoming in their own communities. But our focus is The D. Mary Kramer Publisher, Crain’s Detroit Business Co-Director, Detroit Homecoming 20141020-SUPP--0088-NAT-CCI-CD_-- 10/15/2014 2:48 PM Page 1

Page 88 FALL 2014 FALL 2006 ESSAY MARTHA MILLER BOUDREAU ‘Innovation’central to brand Through highs and lows, city continues to change

ecently I spent several days at the Detroit Homecoming, surround- ed by accomplished Detroit expatriates. As we all listened to the R remarkable progress our beloved hometown is making in neighborhood renewal, business investment, design for future development, urban farming and educational partnerships, I found myself marveling at the sheer power of innovation to spawn creative ideas, ideas that are Berry Gordy Jr., working. known for But then it struck me: The story of De- creating the troit has always been a story of continuous fundamentals of the Motown change. We’re starting a new chapter for style of music, sure, but for more than 300 years, Detroit was presented has been an icon of invention and reinven- the inaugural tion. Innovation is a way of life in Detroit; “Detroit Legend” award it’s in our blood and in our hearts. during Detroit Yes, there have been pauses along the Homecoming. way, but Detroit and Detroiters always find AARON ECKELS their way back to innovation as the way for- and creativity were, and are, shining exam- and our fantastic entertainment scene. What ward. What I’m talking about is deeper than ples of the power of innovative thinking and they can’t see — but they can feel — is our the copy used in tourism campaigns and are the bedrock of our confidence. determination to keep innovating for the economic development brochures. And we But vision and great ideas are nothing sake of the city’s future. need to make the rest of the world under- without a sound system of implementation. At Homecoming, Berry Gordy said it all stand that. And that implementation has to come from when he said “Detroit makes you strong.” De- From automotive research and manufac- the ground up. Luckily for us, Detroit’s troiters are strong, willing to face change and turing to music and cultural institutions to workforce breathes innovation in the cre- do what it takes to ride out hardships. When the burgeoning tech sector and all the way to ative ways it has always made ideas come to times got tough, when our hold slipped, we long-standing community organizations, our life. It is the workers — yesterday’s and to- changed, we innovated and we kept going. city was and is built on innovation and inven- day’s — that keep changing, innovating, Branding experts will tell you that a brand tion. It’s a roadmap, an approach to city man- evolving and rebounding and ultimately — whether a beverage, a bank, a car or a city agement, a business strategy. It’s the funda- providing the acid test of what works and — must be authentic. It must speak the mental underpinning of our entire way of life. what doesn’t. truth, and it must stand the test of time. And, it’s a big part of our collective soul. It may seem hard to believe, but the entire Well, I think it’s time to own innovation Detroiters believe in our city’s prowess, country is rooting for Detroit and watching and claim it as central to our city’s brand. and we’re optimistic about the future. No how we are remaking our city. The country After all, it is a time tested part of the way one is expecting a magic moment of com- is paying attention to the rising home prices, we do business and how we get things done. plete transformation. But our citywide our magnificent waterfront, the use of our There is no more authentic quality to De- mindset, our belief in the power of innova- open spaces, world-class sports franchises troit than innovation. It’s more than part of tion and our history of invention are fueling our brand; it’s part of our soul. Innovation, our determination to get things done and It’s time to own invention and forward motion have made succeed in new ways. Detroiters who we are. And, who we are is Henry Ford, Mary Chase Perry Stratton, innovation and claim it mighty strong. Henry Leland, Horace Dodge, Elijah Mc- Coy, Sebastian Kresge, the Ilitch family, as central to our city’s Martha Miller Boudreau is the chief com- Dan Gilbert and Berry Gordy are great ex- brand. munications and marketing officer for AARP. amples of Detroit visionaries who couldn’t She attended Detroit’s Redford High School stand still. Their ideas, products, risk taking — MARTHA MILLER BOUDREAU — and the University of Michigan. CDB Living In The D_New CD Magazine sized 10/6/2014 2:39 PM Page 1

THE BEST PART OF A RISING CITY IS BEING A PART OF IT.

Join us in bringing business to Detroit.

©2014 Chrysler Group LLC. All Rights Reserved. Chrysler, Jeep, Dodge, Ram and Mopar are registered trademarks of Chrysler Group LLC. FIAT is a registered trademark of Fiat Group Marketing & Corporate Communication S.p.A., used under license by Chrysler Group LLC. CDB Living In The D_New CD Magazine sized 9/30/2014 4:46 PM Page 1

Reconnect.REINVENT. REINVEST. Adding hundreds of businesses to the city. 12,000 workers. Tens of thousands of volunteer hours in the community. Quicken Loans and Rock Ventures are doing all of this, and more, to improve the wonderful city of Detroit. Join us, and we’ll drive the future of the Motor City together.