[email protected] By ChadLivengood Investment Banking onDetroit Chase’s Entrepreneurs of Color Fund to helpnance thepurchase andrenovation. Detroit Vegan Soulco-owners Erica Boyd, le , andKirsten Ussery infront of their second location onGrand River Ave. inNorthRosedale Park. They borrowed $100,000 from tate projects. development initiatives and real es- for small business capital, economic inloansmillion pledge andgrants lavish a$100 with city thebankrupt nation’s largest bank. into abusinessforthe opportunity three years ago ruptcy has morphed through municipal ahistoric bank- help Detroit was asthecity going & Co. Jamie CEO Dimon’s desire to small businesses inthecity, butit’s also agrowth opportunity for thebank J.P. Morgan Chase’s latest $50Minvestment inDetroit isgood news for NEWSPAPER Last Wednesday, Dimondis- Dimon came to town in2014to What asJ.P. started Morgan Chase Detroit Vegan Soul Kirsten Ussery, building.” renovate the to completely get themoney been ableto wouldn’t have fund. We without the have happened “It wouldn’t crainsdetroit.com Vol. 33No20 by Crain Communications Inc. All right © Entire contents copyright 2017 column. Ron Fournier’s potential Detroit’s delivers Loyola Page 6 posits asofJuneposits 30,2016,according $20.2billioninde- with in thecity of theretail banking market share Chase bank controlled 64.6percent ledger. their own with tor —starting City brewing opportunity intheMo-see bankers at this Wall Street institution loans.long-term at’s because the half of ithas repaid to be through troit’s nascent revival. toward De- pledge underwriting tives to deliver another$50million patched ateam ofhisbank’s execu- With 19branches inDetroit, But isnotallcharity — the money s reserved $2 acopy. $59 a year. ration. Federal Insurance Deposit Corpo- to themost recent data from the FDIC data shows last deposits MAY 15-21, 2017 Bankruptcy Court. Bankruptcy protection from itscreditors inU.S. — just 18days before sought thecity up 36.7percent since June 30,2013 June at Chase banks inDetroit were spending, according to thestudy. 50percent exceed nesses ofall debit card spending at small busi- 14 U.S. citiesstudied had credit and small businesses. None oftheother ing in Detroit last year occurred at percent ofChase consumer spend- company thinktank, found that 58 eJ.P. Morgan Chase Institute, a PHOTOGRAPHS BY LARRY A. PEPLIN SEE Special healthcare report: Life a erP zer << rebounded a er thegiant’s shutdown. Page 8 Executives say state bioscience industry needs capital, tax credits to grow. Page 9 CHASE, PAGE Michigan’s pharmaceutical industry has 16 brewing capacity. Page 3 New owners aimto triple Arbor Brewing Bigalora buys is theplanas Expansion [email protected] By Kirk Pinho Hudson’s department store site. building at atJ.L. 734feet theformer ing what thecity’s wouldbe tallest projects have been oated, includ- Woodward corridor, eye-popping ward Avenue. and around On the its 3.3-mile xed route onWood- developmentdriving interest along to thepublic opened onFriday, is ferings,” hesaid. income coming outside tidesandof- have to have to dosomethingto try are losing nancial resources, you so losing membership and therefore we changing to thepoint where are we donations. means fewer pews ning but oldbuildings. maintaining architecturally stun- memberships and high costs of their bottom linesamidshrinking estate to helpshore assets up stitutions are looking to theirreal churches andotherreligious in- whydecades ofexperience than 40years, understands from has at been RockLittle for more come.” come won’t thatpeople do troit. “ e few Avenue in De- on Woodward Baptist Church Rock Little toric leads theHis- Holley, who blizzard,” said a don’t let it be onit.pend Holley prays weather. forgood helps them Detroit’s rise groups hope Religious Real estate streete QLine car, which “ e dynamics ofthechurch is Simply put, in the people fewer Holley, who letitrain,“Don’t don'tletitsnow, His church’s tight budget can de- Among otherthings, theRev. Jim SEE CHURCHES, PAGE membership. Churches losing Jim Holley:
17 2 CRAIN’S DETROIT BUSINESS // MAY 15, 2017
INSIDE MICHIGAN BRIEFS CALENDAR 13 CLASSIFIED ADS 15 Mackinac conference ritt told the Associated Press. “At DEALS & DETAILS 13 this point there are no obvious in- to feature Detroit schools KEITH CRAIN 6 superintendent dications of foul play,” Merritt said. An autopsy is expected to be per- OPINION 6 e incoming superintendent of formed to determine how Kivela OTHER VOICES 7 the Detroit Public Schools Commu- died. nity District will be one of the rst e third-term Democrat from PEOPLE 14 speakers of the Detroit Regional Marquette in Michigan’s Upper RUMBLINGS 19 Chamber’s conference on Mackinac Peninsula was arrested about 4:45 WEEK ON THE WEB 19 Island later this month. Gov. Rick p.m. Monday when he was stopped Snyder will also unveil a series of by deputies on southbound U.S. COMPANY INDEX: recommendations from a commis- 127 near Maple Rapids in Clinton SEE PAGE 18 sion he appointed to study trends County, Sheri Lawrence Jerue that will shape Michigan’s economic said. future. Jerue said Kivela was jailed and Nearly 1,700 leaders in Michigan released Tuesday on bond. He nate a 15-year contract with Enter- business, education, philanthropy would not discuss why Kivela was gy Corp., headquartered in New and politics are registered to attend The Detroit Regional Chamber’s 37th annual Mackinac Policy Conference runs from arrested and said formal charges Orleans, that began in 2007 after the Detroit chamber’s 37th annual May 31 to June 2 at the Grand Hotel. were expected to be issued at a May the latter company announced Mackinac Policy Conference from 18 arraignment. plans to shut down its Palisades May 31 to June 2 at the Grand Hotel. trict’s rst superintendent since the Lawmaker found dead e Detroit Free Press reported Nuclear Power Plant in 2018. is year’s conference pillars focus school system was restructured last hours a er arrest Kivela was arrested for suspected e original agreement let Con- on increasing economic opportunity year and emerged from seven years drunken driving. sumers purchase nearly all of the in Detroit and outstate, positioning of control by emergency managers. A Michigan lawmaker was found power Palisades generates through Michigan to be a leader in next-gen- Vitti is the current superintendent of dead last Tuesday inside his Lan- Regulators to decide fate 2022. eration mobility and restoring civili- Duval County, Fla., schools and told sing home hours after being re- of nuclear contract Consumers has proposed to re- ty in politics. his school board he will start work in leased on what may have been his cover a $172 million buy-out pay- Nikolai Vitti, Detroit’s new schools Detroit by May 29, the Florida Times- second drunken driving arrest in e Michigan Public Service ment through customers utility superintendent, will talk about his Union reported. less than two years, the Associated Commission is deciding whether rates. A nancing order application vision for rebuilding the state’s larg- Also on the opening day, Snyder Press reported. ending a nuclear power purchase shows Consumers alleging its cus- est school district during a session will present the policy recommen- O cers responding to a welfare contract would be a cost-saving de- tomers would save between $54 sponsored by the Skillman Founda- dations of his 21st Century Economy check request found the body of cision for energy customers. million and $1.1 billion by ending tion on May 31, the opening day of Commission, said Sandy Baruah, state Rep. John Kivela about 1 p.m. e commission held back-to- the contract early, despite the utili- the conference. president and CEO of the Detroit Re- at his out-of-district home just back public meetings in Lawrence ty charges. e Detroit school board voted gional Chamber, who is also chair- northwest of the state Capitol, Lan- to focus on Jackson-based Con- e commission will decide on last month to hire Vitti to be the dis- man of the economy commission. sing police spokesman Robert Mer- sumers Energy Co.’s plan to termi- Consumers’ proposal by August. Not all heroes wear capes. Crain’s Health Care Heroes recognizes today’s industry professionals who are dedicated to helping save lives and improving access to care. NOMINATE A HERO IN ONE OF THESE EIGHT CATEGORIES: • Corporate Achievement in Health Care • Innovation in Oncology Care or Research NEW • Innovation in Heart or Vascular Care or Research NEW • Innovation in Other Health Care Services or Research NEW • Administrator or Executive NEW • Physician • Allied Health • Board Member
TIME IS RUNNING OUT. THE DEADLINE TO NOMINATE IS MONDAY, MAY 22. For more information and to submit a nomination visit: crainsdetroit.com/nominate CRAIN’S DETROIT BUSINESS // MAY 15, 2017 3 Acquisitions
Farm + Ferment, the holding company for Bigalora and several other entities, formed ABC Brew Holding LLC to acquire Arbor Brewing Co.’s brewpub in Ann Arbor and ABC Brew Production LLC to acquire Arbor’s Corner DOUG COOMBE Brewery and brewhouse in Ypsilanti. Arbor Brewing acquired as brewers build statewide brands By Dustin Walsh 10-year agreement were not dis- new yet-to-be-determined locations Bigalora, founded by Chef Lucia- [email protected] closed. in Southeast, Southwest and North- no DelSignore in South eld in 2010, “They will be e new owners of Arbor Brewing Farm + Ferment, the holding com- ern Michigan, said Mike Collins, has expanded to six locations with separate and Co. plan to capitalize on the recent pany for Bigalora and several other managing principal of Farm + Fer- the most recent opening in February distinct with trend of expanding brewpubs across entities, formed ABC Brew Holding ment. in Rochester Hills. e other loca- the state in a bid to market Arbor’s LLC to acquire Arbor’s brewpub in “( e expansion) will be similar to tions are in Royal Oak, Ann Arbor, Bigalora focusing beer to new drinkers. Ann Arbor and ABC Brew Produc- what we did with Bigalora,” Collins Ford Field in Detroit and at the De- on its Italian e owners behind Bigalora tion LLC to acquire Arbor’s Corner said. “We don’t have hard and fast troit Metropolitan Airport’s Mc- Wood Fired Cucina and Michigan Brewery and brewhouse in Ypsilanti objectives. We want to take advan- Namara Terminal. Same-store sales oerings and Hop Alliance closed last week on a with plans to expand its geographical tage when we see an opportunity, but were up 15 percent in 2016 compared Arbor with more deal to acquire the Ann Arbor brew- reach. e company will expand an- we want to make sure our current op- to 2015, and in 2015 same-store sales American pub pub and Ypsilanti brewing opera- nual brewing capacity in Ypsilanti erations don’t su er and that any increased by 10 percent compared to tions from previous owners Matt and from 6,000 barrels to 20,000 barrels new locations get the attention to get 2014. food.” Rene Gre . Financial terms of the later this year to supply at least two up and running successfully.” SEE ARBOR, PAGE 15 Mike Messink, Farm + Ferment
Sports business MUST READS Minor leagues nd major support in metro Detroit By Bill Shea pulled it o ? OF THE [email protected] e answer is a con uence of fac- Detroit may be one of the nation’s tors, sports industry insiders say: WEEK great major league sports cities, but Timing, professionalism, and a couple of minor-league organiza- fan-friendly pricing in a market still Skills gap tions have carved out successful recovering from the recession. Costs, lack of interest put damper on niches. “People really want to take their apprenticeship programs. Page 5 e semi-pro Detroit City FC soc- kids to sport events. ese two par- cer club in Hamtramck and the four- ticular sports both have a model team United Shore Professional where they can a ord to make it Chad Livengood Baseball League in Utica are playing work while still only charging $6 to to sellout crowds. $10 for a ticket,” said Mike Dietz, Passage of brown- Both organizations also have president and director of Dietz eld bills signals been able to attract enough corpo- Sports & Entertainment in Farming- shi in out-state rate sponsorship dollars to sustain ton Hills. attitudes about themselves. Here’s a look at the playbooks the Detroit. Page 14 Neither has the lure of elite house- USPBL and Detroit City FC have KURT NAGL/CRAIN’S DETROIT BUSINESS hold name players or the windfall of used. Fans turn out for opening day of the United Shore Professional Baseball League at lucrative TV deals, so how have they SEE LEAGUES, PAGE 18 Jimmy John’s Field last week. 4 CRAIN’S DETROIT BUSINESS // MAY 15, 2017 One Of The World’s Top Sandler Training Companies Fieger ‘darn serious’ about running for governor again Learn how to create an ELITE team By Chad Livengood to take your company to the next level! [email protected] “I’ve watched the state EAST LANSING — Southfield deteriorate to the point at which Featuring trial attorney Geoffrey Fieger said Murray Feldman Gerry Weinberg Alana Nicol Friday that he’s “darn serious” we can’t travel our roads, our about running for the Democratic schools are disintegrating, we’re nomination for governor in 2018 — 20 years after his failed guber- not paying workers what they natorial campaign against incum- should be paid, we’re engaging in a bent Republican Gov. John En- gler. war on teachers.” WWJ CEO of President of In an interview on WKAR TV’s Geo rey Fieger Business Editor Gerry Weinberg & Associates, Inc. “Off The Record,” Fieger said he would tap into the populist voter If you’re a CEO, President or Business Owner, who is: anger that propelled President Gov. Brian Calley are widely ex- • frustrated with unpaid consulting and how long it takes Donald Trump into the White pected to face off for the GOP to close business? House — if he actually gets into nomination next year. Calley is ex- the race to succeed term-limited pected to kick off his campaign • unsure your existing salespeople have what it takes to Republican Gov. Rick Snyder. May 30. Fieger dismissed Bern- grow your company? Fieger said Michigan has suf- stein and Whitmer’s candidacies fered from an “absence of vision” • disappointed that your vision isn’t met? between taping of the 30-minute under Snyder and his predecessor, “Off The Record” segment for pub- Wednesday, May 17th Democrat Jennifer Granholm. lic television stations and an “over- “I’ve watched the state deterio- Geo rey Fieger: Gretchen time” segment for WKAR’s web- 11:30 AM – 2:00 PM rate to the point at which we can’t Political climate Whitmer: Already site. “I think Bernstein would be Andiamo Bloom eld Twp. travel our roads, our schools are has changed. seeking nomination. fine,” Fieger said. “He doesn’t disintegrating, we’re not paying know anything, but he’d be fine.” Investment: workers what they should be paid, field of lesser-known candidates “I don’t know who Gretchen Sponsored by Gerry Weinberg & Associates and WWJ Newsradio we’re engaging in a war on teach- that includes former Detroit Whitmer is,” Fieger added. “I don’t ers,” Fieger said. Health Department Director Ab- want another Granholm. She was To Register or For More Information, Visit: Fieger, owner of the South- dul el-Sayed. Farmington Hills at- so weak in terms of the Legisla- www.gerryweinberg.sandler.com or field-based personal injury firm torney Mark Bernstein said this ture.” Granholm was elected gov- Call (248) 353-4030 | RSVP Required Fieger Law and probably best week on WJR-AM 760’s Paul W. ernor in 2002 with no legislative known as the defense attorney for Smith Show that he’s “very seri- experience. Registration must be con rmed by a team member from right-to-die activist Jack Kevorkian ously” considering a bid for the Whitmer spent 14 years in the Gerry Weinberg & Associates, Inc. in the 1990s, spent $6 million of Democratic nomination for gov- Legislature until being forced out of his own money in 1998 but lost to ernor. o ce in 2014 by constitutional Engler by 24 percentage points or Fieger jumped into the 1998 term limits. “Isn’t that a sexist state- nearly 740,000 votes. governor’s race in the spring of ment to compare (Whitmer) to He said Friday that the political that year, just before the filing Granholm?” show host Tim Skubick climate has changed in Michigan deadline. Like last time, Fieger asked Fieger. “I don’t know. Gran- after Trump upset Democrat Hil- said he’s in no rush to make a de- holm didn’t impress me,” Fieger re- lary Clinton in the presidential cision about running. “Every- plied. “I don’t think it had anything SICK OF DEALING race. body’s telling me, just like they to do with sexist.” The bombastic and media-sav- told me then, oh you’ve got to do During the interview, Fieger in- vy attorney said he'd consider run- this now because labor is going to sisted he’s not floating his name WITH PRINTERS? ning for president in 2020 if he back Mr. Bernstein or Ms. Whit- for governor to inflate his well-doc- Luckily for you, we love it. could capture the governor's man- mer. With what? (The unions) umented ego. sion next year. don’t have any money,” Fieger “I certainly don’t need the at- “If I do run for governor, I’m not said tention,” he said. going to promise not to run for On the Republican side, Attor- Chad Livengood: (313) 446-1654 We’ll keep your printers and copiers president because I think ‘2020: A ney General Bill Schuette and Lt. Twitter: @ChadLivengood running, manage your supplies, ramp up Clear Vision for America’ is a damn good slogan,” Fieger said. “I your security, and save you up to 30%. think that’s a lot better than Make America Great Again.” Fieger’s television advertising for his law firm has been prolific across the state for years. 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CRAIN’S DETROIT BUSINESS // MAY 15, 2017 5 Costs, lack of interest put damper on apprenticeship programs By Dustin Walsh no one wants it.” just a lack of motivation — that will tion equation: getting young people, [email protected] “We keep getting And despite increasing numbers make them less likely to see the pro- educators, and their parents interest- AlphaUSA needs to hire die makers, approached and joining apprenticeships, fewer have gram through to completion.” ed in the skilled trades. electricians and maintenance workers that the state can the skills they need to complete pro- Michael Richard, business manag- “We need to get to young people in to keep growing. grams, Carnevale said. er and nancial secretary for the In- middle school or before; that’s when Its executives are among the throng oset the costs, Between 2008 and 2015, the num- ternational Brotherhood of Electrical young people are engaged on wheth- of Southeast Michigan employers but our current ber of newly registered apprentices in Workers Local 58 in Detroit, con- er their future includes education or lamenting the skills gap that threatens Michigan grew 69 percent from 3,132 rmed the economy is constricting not,” Lawrence said. productivity, growth and the economy employees have to 5,305, according to a November re- talent. e state is beginning to make at large. Yet the family-owned metal no interest in port by the Michigan Department of Local 58, which operates its own headway on this front. Last month, it fastener and engineer services suppli- Technology, Management and Bud- apprenticeship school in Warren launched the second phase of its Go- er in Livonia ended its apprenticeship learning or going get. Apprentices completing pro- funded by its members, uses a strict ing Pro campaign, which is focused programs years ago and has no imme- back to school...” grams dropped to 765 in 2014 from entrance exam to weed out potential on increasing the visibility of skilled diate plans to launch another. David Lawrence, AlphaUSA 1,275 in 2012, largely due to shrinking dropouts. But they’re struggling to ll trades to students and parents. e Alpha understands the bene ts. enrollments after the Great Reces- growing demand in the construction campaign started last year with bill- e state o sets the costs with signi - prentice graduate earned $25.21 per sion. at gure is now rising, with sector, he said. boards; the second phase will now cant grants per apprentice. For every hour. Higher-paying, more stable jobs 878 completions in 2015 and 1,116 in e local recently began a 10-week focus on educating parents and stu- dollar spent on an apprenticeship pro- equal more tax revenue and less reli- 2016. Apprenticeships typically take pre-apprenticeship program to help dents on career choices beyond a gram, an employer gains $1.47 on av- ance on social safety nets. one to four years to complete. get candidates up to speed on the re- four-year degree. erage in productivity increases, ac- But Anthony Carnevale, director of Experts say Michigan’s strong quirements before enrolling in the Carnevale said engaging students cording to a recent Georgetown the Georgetown University Center on economy may actually harm enroll- regular program. Roughly 87 percent in vocational training is now more crit- University study. Turnover is reduced. Education and Workforce in Wash- ments. Michigan’s unemployment of its apprentices complete the pro- ical than ever — because civil unrest Skilled workers are created. ington, D.C., said U.S. employers still rate remains low at 5.1 percent in gram. begins with employment stagnation. But all the supplements mustered struggle to rationalize the expense of March, down from 5.3 percent in Feb- IBEW currently has 600 in its ap- “In Europe, governments focused can’t revive a practice that’s been gut- apprenticeship programs, even ruary. prenticeship program, down from a academic reform on vocational train- ted of its lifeblood — workers who though there is a clear return on in- “Apprentices who nd higher-pay- peak of 725. Richard said the program ing by passing laws because they were want in and will complete the pro- vestment. ing work are likely to drop out of their hopes to reach 725 this year, but will fearful of war and revolution. ey grams. An apprenticeship can cost an em- apprenticeship program,” said Wal- not commit to more even if there’s in- had to do something for the work- “ ere is, frankly, a lack of interest,” ployer from $25,000 to $250,000, ac- lace Hopp, associate dean for learning creased demand. force, and in a hurry, because they said David Lawrence, vice president cording to data gathered by Carneva- design and professor of industrial and “We have to be careful because of were scared,” Carnevale said. “We’ve and chief administrative o cer for Al- le. operations engineering at the Univer- the cyclical nature of our industry,” never had that ‘come to Jesus’ mo- pha. “We keep getting approached “ e U.S. does not have a tradition sity of Michigan Ross School of Busi- Richard said. “We’re feast or famine. I ment in America. But it’s here now. and that the state can o set the costs, of employers being willing to pay to ness. “And as the more quali ed peo- can’t put people in the program only Apprenticeships are the world gold but our current employees have no in- have people in the workplace only ple nd regular jobs, the for them to be two years in and have standard for creating jobs. Let’s hope terest in learning or going back to three days a week at their own cost,” apprenticeship programs are forced the rug pulled out. at’d be a trage- our (local and national) governments school...” Carnevale said. “We know that ap- to dig deeper into the pool and hence d y .” listen.” e state is trying to boost learn- prenticeships work, they provide wind up getting more people with e x, Lawrence said, is on the Dustin Walsh: (313) 446-6042 while-you-work programs, which are higher earnings and productivity, but problems — drug use, family issues or supply side of the workforce-educa- Twitter: @dustinpwalsh up to 999 registered programs this year from 782 in 2014, according to the U.S. Department of Labor. However, regis- tered apprentice programs are still down more than 50 percent since 2005 after taking a huge hit during the Great Electronic Payments, Recession. Marcia Black-Watson, administra- Data Privacy and tive director for industry engagement at the state’s Talent Investment Agen- cy, said employers have reached a tip- Security Law Experience ping point where building their own workforce is critical. ® “Because the labor market is so In Your Corner. tight, because we have the lowest un- employment rate we’ve seen in years, Ŷ Data Security and information law, privacy it’s become di cult to nd talent in policies, breach noti cation requirements. skilled occupations,” Black-Watson Ŷ Electronic payments, mobile payments, said. “Employers now are really con- electronic fund transfers, stored value cards. sidering investment to grow their own talent, and apprenticeships are one of Ŷ Aviation law, aircraft acquisitions, disposition, those (investments).” operation, leasing and nancing, FAA lings, Federal and state governments are International Registry requirements. trying to fuel that growth, Black-Wat- son said. Gov. Rick Snyder initiated the Skilled Trades Training Fund in 2013, which provides $1,500 per apprentice for classroom training, $1,500 per ap- prentice for wage reimbursement and allocates an additional $3,000 per new apprentice from the labor depart- ment. e use of public funds serves a purpose. Professional trades will ac- count for more than 500,000 jobs in Michigan’s economy by 2024, ac- counting for 16 percent of all job growth during that period, according to the state. Skilled trades are also pro- jected to grow 50 percent faster than the statewide average during that time and o er a median wage 45 percent higher than the median for all occupa- tions in the state. Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings In 2015, a new apprentice made an Contact Jill Miller at [email protected] average of $14.51 per hour and an ap- 6 CRAIN’S DETROIT BUSINESS // MAY 15, 2017
OPINION Men for others f you look hard enough, you can nd a business story almost any- Iwhere. Just the other day, I found one over the shoulder of a priest. His name is the Rev. Mark Luedt- ke, a Jesuit who runs Loyola High School on the city’s northwest side. On my visit to his modest o ce, Lu- edtke bent his lanky frame into a sofa RON FOURNIER beneath a window overlooking Pine- Publisher and Editor hurst Street. Pointing a thumb over his right shoulder, Luedtke told me about a junior at his all-boys school Ron Fournier is publisher and editor of who lives in a house across the street, Crain’s Detroit Business. Catch his the one with a blue door. take on business news at 6:10 a.m. “He’s a good kid. Gets good grades. Mondays on the Paul W. Smith show But he can’t get himself here on on WJR AM 760. time,” Luedtke said. “Both of his par- ents work the day shift and there’s young men who attend Loyola High nobody there to get him up in the School. morning.” Established in 1993 by the Archdi- Two other men in the room nod- ocese of Detroit and the Jesuit order, ded their heads — Bill McGrail, di- the school has one teacher for every rector of advancement, and Terry nine students. Each of the students is Rhadigan, an executive at General fed three times a day at the school. Motors who sits on the school’s ey pray together every morning in board. a gym converted into a tiny church. “So we routinely knock on his ey play basketball in a church con- door to drag him o to school,” the verted into a huge court. COURTESY LOYOLA HIGH SCHOOL priest chuckled. “It’s hard for boys to Loyola’s varsity sports include Michael Black, (le) dean of Student Formation and a 2001 Loyola High School graduate, Paul Davis, director of admissions, hide here. ey try; they’re boys. But football, rugby, bowling, cross class of 2011, and Wyatt Jones III, principal, class of 1998, went on to earn college degrees and came back to work at Loyola. we nd them.” country and track. eir extracur- How is this a business story? Well, ricular activities include debate, art vate schools, and even some pub- trusion, he was proud of the boys the work-study program is a great the boy who lives behind that blue club, Model United Nations and the lic/charter schools, do a lot to lift for sticking together. “Men for oth- way for GM to introduce the com- door grew up in a city lled with National Honor Society. students out of poverty. He claims ers,” he smiled. pany to an untapped workforce. young men and women whose fu- Juniors and seniors get work ex- to have an edge in the Jesuit spirit Just then, the door opened and “ ese kids are our future.” tures are linked to public and charter perience at local companies and of doing more as “men for others.” the school’s legendary new football McGrail agreed. “Downtown school systems that are unworthy of nonpro ts. eir salaries help de- “We ask the questions, ‘Have you coach glided into the room. William and Midtown are great, but these them. Given a rst-class education, fray tuition costs, contributing 15 been fed? Are you getting enough Tandy coached the Westside Cubs of drive-by neighborhoods — these these young men and women could percent of the school’s budget. sleep? Are you the only responsible PAL for 23 years before joining places people drive by while going ll the talent gap that plagues every To graduate from Loyola, a stu- adult at home?’ ose are the bur- Loyola this year, sending more than from downtown to the suburbs — Michigan business. ey could inno- dent must be accepted to a two- or dens our kids bring to school,” Luedt- 100 players to a Division I college are lled with potential.” vate southeast Michigan into a di- four-year college program. Luedtke ke said. “What we bring is the ques- and a half dozen to the NFL. Tuition is a maximum of $4,300 verse economy. ey could show De- can’t force them to go, but he can tion, ‘Are you OK?’ Once that trust is He remembers the ones he lost, per year. e average family pays troit and the world how a modern make sure they earn a shot. ree built up, then we can teach you.” the young men who squandered $1,850. Every family pays at least city grows prosperity while shrinking Loyola alums now work at the school: Rolling his eyes, Luedtke told me their potential to poor grades or $20 a month. But it costs $18,000 to inequality. dean of student formation Michael about a recent night when a stu- criminal behavior. at’s why his educate a single student for a year, ey could thrive. Black, director of admissions Paul dent with a rocky family situation motto now is “God. Books. Ball.” leaving a gap that can only be lled Unfortunately, few young Detroi- Davis, and principal Wyatt Jones III. didn’t want to go home from “If your life isn’t in order. If your by people who donate money or ters are as lucky as the boy who lives Eighty- ve percent of Loyola stu- school. A few of his classmates got school isn’t in order,” he tells his sponsor the work-study program. behind the blue door. dents live in Detroit, and the rest wind of the boy’s plight and stayed players, “we don’t have room for You can contribute here: http:// While so many struggle with pov- come from surrounding communi- late with him. Close to midnight, you on the ball eld.” loyolahsdetroit.org/home/support/ erty, violence, family strife and a ties. Almost all of them are African they were nally persuaded to leave I ask the guy from GM, board Your return on investment? Ask third-world education, the boy be- Americans. the school with their parents. While member Terry Rhadigan, why the boy behind the blue door — and hind the blue door is one of 147 Luedtke concedes that other pri- Luedtke was not happy with the in- Loyola is a business story. He said the thousands like him. Suddenly it’s yesterday here is something ironic that 1956. But everybody is talking streetcar line, and more stores and sary. With the huge economic by- over a half a century ago, De- about this new passenger system restaurants will follow. It will be in- product, it makes sense to support Ttroit tore up all the streetcar tracks on Woodward that opened to the teresting and exciting to watch. the system. The only question will to make more room for the car. public over the weekend. I think it I am sure that this will be so suc- be at what level. On Woodward Avenue, not only will be a real power as an econom- cessful that Detroit citizens will be It is the height of irony that De- did they tear out the tracks, they ic development engine. clamoring for expansion of the line troit is returning to a system that it made the street wider, tearing o the Anywhere you go in the country, to cover other parts of the city: tore up more than 50 years ago. front accessways of businesses and mass transit has spawned huge continuing north on Woodward or It is also important to remember churches. KEITH CRAIN economic development. We al- Jefferson Avenue to the east or that there will be shifts in popula- It worked for 50 years, but now it is Editor-in-chief ready are seeing new businesses Grand River to the west. tion over the next 50 years that time to re-introduce, in a small way, that have sprung up along the route The question is how difficult could make this route obsolete. the trolley system to Detroit. To I never saw that original street- and new apartments and condo- will it be for this small street car Three cheers for all the people quote Neil Armstrong, this is "one car system that stretched well be- miniums. We’re going to see more. system to support itself or how and funders that made this hap- small step for Man." yond Detroit’s borders. It ended in People will want to move near the much of a subsidy will be neces- pen. CRAIN’S DETROIT BUSINESS // MAY 15, 2017 7 What cities can learn from Detroit’s resurgence e Motor City, once one of Ameri- at commercial corridors but extends To achieve long- sights have helped us sharpen our fo- ca’s most prosperous cities and an en- into a city’s neighborhoods. ere- cus on supporting underserved en- gine of economic growth, turned in a fore, to achieve long-term success, we term success, we trepreneurs and have led our rm to matter of decades into one of its most must cultivate inclusive growth strat- must cultivate re ne our approach and develop a distressed. e city often conjured up egies that connect families, entrepre- model that is yielding real results. images of dilapidated homes, aban- neurs and distressed communities to inclusive growth Finally, while there are many crit- doned lots and communities strug- more economic opportunities. strategies that ical lessons coming out of Detroit, gling with high unemployment and Harnessing the power of technolo- connect families, one of the most important is that high crime. For too long, Detroit was OTHER VOICES gy to stabilize Detroit’s neighbor- moving the needle on complex and viewed as a ghost town, a warning of Peter Scher hoods has also been a critical part of entrepreneurs interconnected social and economic what can happen when too many of a this strategy. e Motor City Mapping issues requires a comprehensive, in- Scher is head of corporate responsibility and distressed city’s critical, interconnected ele- project uses technology developed by tegrated, data-driven approach — ments go wrong. and chairman of the Greater Washington Loveland Technologies to digitize communities to and collaboration is the linchpin. About three and a half years ago, Region for J. P. Morgan Chase and Co. property information and help city more economic is is one of the key elements that is while Detroit was still in bankruptcy, ocials, residents and community making Detroit’s turnaround possi- J.P. Morgan Chase Chairman and vesting $100 million over ve years groups work together to transform opportunities. ble and it is a lesson to which leaders CEO Jamie Dimon directed me to take along with leveraging our core busi- blighted properties. e success of in business and government should a team to the city to see what our com- ness and our people’s expertise in key these e orts in Detroit has caught the tion. Research shows that small busi- look on how to get things done. is pany could do to help. What we found areas such as community develop- attention of other city leaders seeking nesses are more likely than their larg- approach and strong cross-sectoral was a newly elected mayor with a ment, small business lending and to deal more e ectively with blight er competitors to hire from distressed collaboration has enabled us to ex- strong team and a great vision for their workforce readiness. and distressed properties and make neighborhoods where unemploy- ceed our initial $100 million com- city. We realized that there was an un- Detroit has now turned the corner, more data-driven decisions on com- ment is high. In Detroit, the mitment two years ahead of sched- precedented spirit of cooperation and and the innovative e orts behind the munity development. J.P. Morgan fourth-largest U.S. city for the num- ule and extend our commitment commitment among the city’s civic, city’s resurgence o er powerful les- Chase is now expanding this da- ber of minority-owned businesses, over the next two years to support business and nonpro t leaders. And sons for all of us — particularly for ta-mapping tool to three cities in programs like the Entrepreneurs of the city’s continued recovery. We in addition to the tremendous need, business and political leaders — on Ohio — Cleveland, Cincinnati and Color (EOC) Fund are proving to be a now expect our investment to reach we saw that there was opportunity how to tackle tough challenges facing Columbus — that face similar chal- crucial component of the city’s come- $150 million by 2019. where the right kinds of investments, communities around the world. lenges. back. e EOC Fund, which provides Detroit still has a long way to go, not just money, could make a real im- First, we know that cities o er the ird, supporting underserved mi- exible nancing to minority-owned but the e orts spurring the city’s turn- pact. greatest potential to drive economic nority entrepreneurs is critical to un- businesses that lack access to tradi- around should inspire us all to take a So we made a big bet on Detroit’s growth, but any future e orts must in- leashing the power of small business tional forms of capital and credit, has page from its playbook, work together turnaround. To help accelerate the clude a comprehensive approach to as a driver of economic opportunity awarded 44 local businesses with $3.4 to solve problems and drive inclusive city’s comeback, we committed to in- ensure that opportunity does not stop and is essential to a city’s transforma- million in critical capital. Such in- economic growth. Don’t let licensing keep ex-prisoners from working Can a job keep someone out of their past mistakes as a strike against oner will be turned away from enter- tivation in the state for change. Gov. jail? Michigan legislators seem to them. ing the labor force and will return to Rick Snyder has urged the repeal of think so, as they are pushing a new ere is a strong link between oc- crime.” many licensing laws and has said he bill that would give money to em- cupational licensing laws and recidi- It’s true that some restrictions on will not allow the state to erect addi- ployers who hire former o enders. vism rates — the chance someone ex-o enders might make sense. tional barriers to getting a job unless e need is real: Nearly one in three returns to prison. A recent Arizona Someone convicted of fraud or em- they can be proven to directly protect ex-o enders in Michigan ends up State University study found that bezzlement, for example, may not be public health and safety. returning to prison, and many ex- states with the heaviest occupational suited for a license in nancial man- Michiganders should be free to perts believe unemployment is a OTHER VOICES licensing burdens experienced, on agement. But it’s important to re- pursue their right to earn an honest leading cause. But the biggest prob- Jordan Richardson average, a nine percent increase in member that Michigan’s occupation- living without having to overcome lem is not that employers can’t af- recidivism rates from 1997 to 2007. al laws have little demonstrable government-imposed obstacles. ford to hire former o enders. It’s and Jarrett Skorup States with the lowest burdens — and impact on public safety. Instead of Limiting opportunity through exces- that state law creates needless barri- Richardson is a senior policy analyst for no “good moral character” provi- protecting the public and ensuring sive licensing hurts everyone, but es- ers for these job-seekers. criminal justice reform at the Charles sions — experienced a decline in re- competency, most of these arbitrary pecially those trying to acclimate A chief culprit is Michigan’s oner- Koch Institute in Arlington, Va. Skorup is cidivism rates of almost three per- laws simply serve as needless barri- back into productive society after ous occupational licensing laws. a policy analyst at the Mackinac Center cent, on average. e study ers to job opportunities for ex-of- serving time. If Michigan wants to re- Under this regulatory regime, the for Public Policy in Midland. concludes, “ e greater the legal re- fenders, and many other people as duce its recidivism rate, it should state restricts people from legally strictions to working in a state, the well. start by reforming its occupational working in certain industries unless that there is little evidence that these higher the likelihood that an ex-pris- e good news is that there is mo- licensing laws. they have a license. Acquiring a li- laws protect public health or safety. cense means spending hundreds or Such laws are detrimental for an thousands of hours on training, pay- ex-o ender’s chance to land gainful ing fees, and passing a “morality” employment. People with criminal review, which includes a criminal records, even if they meet all train- background check. ing and educational requirements, More than 150 professions in are often automatically forbidden Michigan require a license, includ- from obtaining a state license to ing barbers, dance instructors, pota- work. to dealers, shers, shampooers, is is because Michigan laws NEVERNEVER MISSMISS A BBEATEAT WWITHITH milk samplers, manicurists, butter ban people with almost any crimi- inspectors and even nger nail tech- nal record from working as school nicians. Nearly 21 percent of Michi- employees or health care workers. CRAIN’S MICHIGAN ganders need permission from the is is true even if an o ender’s government before they are legally crime had nothing whatsoever to do STOCK CENTER allowed to work in their desired with the occupation for which they A comprehensive list of Michigan’s eld. Even ower gardeners and seek a license. In the dozens and largest public companies in real-time horse jockeys need state approval dozens of other occupations that re- and in one convenient location. before they can earn a living. quire state permission, the law al- It wasn’t always this way: In 1950, lows licensing agencies to use crim- approximately ve percent of jobs in inal records as evidence of whether Start tracking daily winners and losers the United States required a license; someone has enough “good moral by visiting crainsdetroit.com/stocks today, it’s nearly 30 percent. Experts character” to join a profession. is on both sides of the policy spectrum ambiguous and subjective attribute — from the Charles Koch Institute to can be used to discriminate against the Obama White House — agree former o enders by forever treating 8 CRAIN’S DETROIT BUSINESS // MAY 15, 2017 SPECIAL REPORT: HEALTH CARE SPECIAL REPORT: HEALTH CARE Executives: Venture capital, tax credits needed for bioscience growth By Jay Greene [email protected] Life aer Pzer Life science company executives and investors say the state of Michi- gan could take several big steps to further boost growth in the state’s pharmaceutical, medical device and biotechnology industries. e rst, they say, is to reinstate, reorganize or refund the Venture Michigan Fund, a highly successful economic program that began in 2003 run by the 21st Century Jobs Fund under the John Engler and Jen- nifer Granholm administrations. e $245 million fund, which has been tapped out, generated more than $1.4 billion in additional invest- ments to 68 bioscience companies with more than 1,500 jobs created, said the Michigan Venture Capital Association. Legislators also should restore the angel tax credit and the research and development tax credit, said Stephen Rapundalo, CEO of MichBio. “We have a governor, a former venture capitalist, who has said it is not the highest and best way for us to invest,” said Rapundalo. “Not having these tax credits has a ected deci- sions and business investment.” e angel tax credit was phased out in 2011 under Gov. Rick Snyder when the Michigan Business Tax was set at a at 6 percent. SHOTSTUDIO VIA ISTOCK “We were one of the earlier states to have those incentives, and it A decade later, Michigan pharmaceutical companies have found paths to growth GROWTH By Jay Greene peutics, Esperion erapeutics, Essen BioSci- and cancer medicines. vestment in Michigan with the industry still pro- FROM PAGE 8 [email protected] ence and Diplomat Specialty Pharmacy — have Another good example is when Ash Stevens ducing great ideas, great technologies and ad- Ten years later, the pharmaceutical industry in also recently gone public, selling millions of dol- Inc. got a $53 million o er last August it couldn’t vances that are intriguing and inviting to “Eighty percent of biotech companies are Michigan has more than rebounded from P zer lars of shares in initial public o erings to jump- refuse from India-based Piramal Enterprises investors,” said Brosnan, adding that Michigan is bought, about 10 percent go IPO, but the eventu- Corp.’s shutdown of its Ann Arbor and Kalama- start research and development, often leading to Ltd. Founded in 1962 by two Wayne State Uni- ranked No. 7 in the number of life sciences in- al ending is sooner or later, they all belong to the zoo research operations. human clinical trials. versity professors, Ash Stevens is planning an- vention patents after national leaders California, top 10 pharma companies,” Sooch said. Stephen Rapundalo, CEO of MichBio, says During P zer’s research heyday in Southeast other major expansion at its Riverview manufac- Texas, New York, Massachusetts and Washing- the industry has experi- Michigan, the global drug company bought ev- turing plant. ton. Sale, partnership enced more than an 11 per- ery pharmaceutical company that had any Kruse said she often gets While total investment in Michigan is now at cent job growth the last ve promise in the state, said Mina Sooch, CEO of calls from inventors and $222 million in 54 startup companies, Michigan Some companies like Ash Stevens and Har- years, spawning many Livonia-based Gemphire. scientists who have some is far below the top 10 states in bioscience invest- vard Drug Group, which was acquired recently startup companies, and is a “When they left in 2007, it was a big deal. ey kind of innovative product ments. Top states are California ($38 billion), by Cardinal Health (NYSE: CAH), joined larger stronger and a more diver- took all the research and development infra- and need access to capital. Massachusetts ($7 billion) and New York ($6 bil- companies to access capital to grow into new si ed industry than before structure with them and moved it to St. Louis “ ere always is this strug- lion). e No. 10 state was Colorado with $941 markets and therapies. the giant global drugmaker and Groton,” Conn., said Sooch, who has been in gle, but I am seeing more million invested in 241 startup companies. Former CEO Stephen Munk of Ash Stevens left. the pharma industry in Michigan since 2000 and companies having access to Overall, there were 141 active venture-backed said the sale to Piramal has gone smoothly. “Overall, the ecosystem is the former CEO of ProNAi erapeutics Inc. capital because you have startups in Michigan in 2016, which is a 48 per- Munk, who resigned April 30 after 20 years with Stephen has grown and the startups, “If you didn’t want to move, you needed to nd John Freshley: more companies innovat- cent increase in the last ve years. Ash Stevens, was replaced by Vince Ammoscato, Rapundalo: some formed by purchas- work or retire. Hundreds of scientists started up Drugs to treat eye ing,” she said. Experts say the state of Michigan can do more vice president of operations. Ecosystem has ing (intellectual property) new companies, joined existing companies like problems. ONL raised more than $4 to provide nancial incentives to support the life Ash Stevens develops comprehensive grown. from P zer, have helped di- Perrigo or Ash Stevens, or went to the University million from private inves- sciences industry to attract and retain capital small-molecule drug substances and has 14 FDA versify the sector very nice- of Michigan.” tors and received other grants from Invest Mich- (see story, Page 9). manufacturing approvals for active ingredient ly,” said Rapundalo, whose MichBio represents Sara Kruse, a health care attorney with Ja e igan and the Novartis Institutes for BioMedical Still, Sooch said the departure of P zer creat- drugs, including oncology drugs Velcade, Vidaza, 160 bioscience, pharmaceutical, medical device, Raitt Heuer & Weiss in South eld, said there are Research to develop drugs to treat retinal de- ed more of an entrepreneurial environment in Clolar and Iclusig. information technology, universities, law rms, a variety of ways companies can generate reve- tachment and other eye problems, said CEO Michigan. “Maybe 100 companies have started “Piramal is starting to invest (about $8 million) consultants and related support companies. nue to grow, regardless of how young or mature John Freshley. since then,” she said, ranging from regulatory and are looking at the 6 acres I purchased to ex- “ at was for the better, quite frankly, because they are. “Novartis is interested because we are devel- consulting, project management, database con- pand into high-potency materials. at is excit- reliance on a large company could be danger- “Biotech companies have long development oping something interesting and novel, but not sulting and biotech startups. Dozens of support ing to see. It will cost $40 (million) to $50 million ous, especially when crisis happens, you are and life cycles before they go to market,” said yet proven. ey know how to commercialize it companies like MMS Holdings Inc., a Canton to develop” the additional property, said Munk, a stuck scrambling how to keep an industry go- Kruse. “It takes a combination of private inves- and run trials,” Freshley said. Township-based database company, and Ka- research chemist who wants to hook up with an ing.” tors, grant funding, angel investors, then you Maureen Miller Brosnan, executive director lamazoo-based Innovative Analytics Inc., have early stage bioscience company in Southeast Since P zer left, such pharma companies in move to the IPO route or maybe you get acquired of the Michigan Venture Capital Association in been founded. Michigan. “ ere is so much happening here.” Michigan as ONL erapeutics, Lycera and Mil- early on and develop a strategic relationship Ann Arbor, said venture capital and angel invest- P zer’s departure also created a new genera- Since last summer, Munk said, Piramal has lendo erapeutics have grown in multiple with a larger pharmaceutical company,” she ment has been strong the past decade. In 2016, tion of angel investors, as many former P zer added sales personnel and opened the door to ways. ey include doing it the old-fashioned said. for example, life science companies in Michigan executives and researchers sold companies for more contracting opportunities for Ash Stevens. way of developing an innovative drug, winning One good example is Lycera, which in 2015 received 48 percent of the invested capital with millions of dollars. e rst Esperion, for exam- “Sales are going slowly, but you need more grants, gaining investors, developing products signed an agreement with Celgene Corp. to ac- pharmaceutical companies receiving 18 percent ple, was acquired by P zer for $1.3 billion, with bricks and mortar and you need more people,” and later gaining U.S. Food and Drug Adminis- quire Lycera after it hits pre-speci ed clinical of that pie, according to the association’s 2017 multiple Michigan people bene ting. Gemphire Munk said. tration approval for sale. milestones for drugs in its pipeline. Lycera is de- research report. also has mostly ex-P zer associates, Sooch said. Over the last 15 years, Ash Stevens has tripled An increasing number — Gemphire era- veloping small molecule autoimmune disease “Life sciences continues to be the focus of in- SEE GROWTH, PAGE 9 revenue to nearly $20 million, but Munk said the CRAIN’S DETROIT BUSINESS // MAY 15, 2017 9
SPECIAL REPORT: HEALTH CARE Executives: Venture capital, tax credits needed for bioscience growth By Jay Greene proved to be useful,” Rapundalo said. well, but we saw a dropo in 2016 ture Michigan Fund. You will really ed to the number of star scientists, [email protected] More than 20 states have some coming speci cally from out of state see a di erence” in companies grow- the report said. Life science company executives kind of tax credit program available capital,” Brosnan said. “Not having a ing and expanding. “You have to have the ideas, the and investors say the state of Michi- to angel investors, according to the program in Michigan doesn’t send a Rapundalo also says he is talking intellectual property, because prod- gan could take several big steps to Overland Park, Kan.-based Angel good message.” with state legislators about reinstat- ucts are viewed by how successful, further boost growth in the state’s Capital Association. Michigan is now Total venture capital funds under ing the angel investment and re- how bankable they will be in the pharmaceutical, medical device and only one of four states nationally management of rms headquar- search and development tax credits. market,” Rapundalo said. biotechnology industries. without a research and development tered in Michigan in 2016 grew 9 per- No legislator has signed on yet after Rapundalo said the Upjohn re- e rst, they say, is to reinstate, tax credit, Rapundalo said. “Not hav- cent to $2.4 billion, said Brosnan. In former Rep. Je Farrington, R-Utica, port shows that tax incentives trans- reorganize or refund the Venture ing both have made us less competi- addition, the number of venture who championed the tax credits for late to jobs, income growth and Michigan Fund, a highly successful tive,” he said. capital investment professionals liv- years, was term limited in 2016. higher wages. “Tax credits are good economic program that began in One of the reasons that total ven- ing, working and investing in Michi- Last year, Farrington introduced for our state,” he said. 2003 run by the 21st Century Jobs ture capital funds under manage- gan has increased by 41 percent the an angel tax credit bill and had it ap- e angel tax credit is just one of Fund under the John Engler and Jen- ment in Michigan declined in 2016 last ve years, generating jobs, she proved in tax committee, but it died several actions the state could take to nifer Granholm administrations. by 24 percent to $4 billion is because said. on the House oor, a victim of oppo- help the pharmaceutical business in e $245 million fund, which has out-of-state in- Attracting outside investors with sition by Snyder and associates. Michigan, said been tapped out, generated more vestors slowed tax credits and a matching state cap- Farrington’s bill would have al- Sara Kruse, a than $1.4 billion in additional invest- their funding, ital fund can pay great dividends. lowed investors who contribute at health care attor- ments to 68 bioscience companies partially because However, Brosnan said MVCA is not least $20,000 to an early stage com- ney with Ja e Law with more than 1,500 jobs created, the loss of the tax advocating the same Venture Michi- pany through a recognized seed ven- in South eld. said the Michigan Venture Capital credits, said gan Fund model as before. “We are ture capital or angel investor group “We need to Association. Maureen Miller working hard to put a better model to claim a 20 percent income tax encourage addi- Legislators also should restore the Brosnan, execu- in place by talking with legislators credit. tional people to angel tax credit and the research and tive director of about it,” she said. “ e governor ironically is not become angels development tax credit, said Stephen the Michigan Mina Sooch, CEO of Gemphire supportive of that incentive. Despite and make those Rapundalo, CEO of MichBio. Maureen Miller Venture Capital erapeutics in Livonia and past that he was in venture capital in the Sara Kruse: Need investments in “We have a governor, a former Brosnan: Drop in Association. MVCA chairman, said she is con- life sciences, he believes it falls into to encourage early stage com- venture capitalist, who has said it is out-of-state funds. On the other vinced state government should the philosophy that you are picking investment. panies,” Kruse not the highest and best way for us to hand, Brosnan boost nancial support for biosci- winners and losers and doesn’t want said. invest,” said Rapundalo. “Not having said Michigan-based venture capital ence if it is serious about creating government to do that,” Rapundalo “We are not seeing aggressive eco- these tax credits has a ected deci- companies continue to increase in- jobs and competing on a national said. nomic development strategy in this sions and business investment.” vestment in bioscience companies. basis with other states already ahead But in a 2014 report, the W.E. Up- state,” Kruse said. “We have a lot of e angel tax credit was phased But without state incentives, outside of Michigan. john Institute in Kalamazoo con- talent coming out of universities. out in 2011 under Gov. Rick Snyder investors have moved some of their “I have watched for 10 years as cluded that state-provided nancial ere is talent here, and it can be a when the Michigan Business Tax was money to other states that are more state programs have gone away,” incentives for biotech companies great place for new companies to set at a at 6 percent. generous with tax credits, she said. Sooch said. " e tax credits are good, raises the number of star biotech sci- start a business.” “We were one of the earlier states “Capital under management is but they are small, just win- entists by about 15 percent. Employ- Jay Greene: (313) 446-0325 to have those incentives, and it growing in Michigan-based rms as dow-dressing. We need a new Ven- ment in biotech companies is relat- Twitter: @jaybgreene
A decade later, Michigan pharmaceutical companies have found paths to growth FDA clinical trials. GROWTH Rapid growth and a quick decision to go pub- vestment in Michigan with the industry still pro- FROM PAGE 8 lic is de ned by the rise of Gemphire erapeu- ducing great ideas, great technologies and ad- tics. From its founding in 2015 to last summer’s vances that are intriguing and inviting to “Eighty percent of biotech companies are initial public o ering with capitalization of $30 investors,” said Brosnan, adding that Michigan is bought, about 10 percent go IPO, but the eventu- million, Gemphire took little time to try and ranked No. 7 in the number of life sciences in- al ending is sooner or later, they all belong to the prove its lead asset gemcabene drug, which in- vention patents after national leaders California, top 10 pharma companies,” Sooch said. hibits cholesterol formation, has commercial Texas, New York, Massachusetts and Washing- and clinical value. ton. Sale, partnership “ ere are only a handful of IPOs in Michi- While total investment in Michigan is now at gan. We are fortunate to be one of them,” said $222 million in 54 startup companies, Michigan Some companies like Ash Stevens and Har- Sooch. “Our IPO has been fantastic. ... We had a is far below the top 10 states in bioscience invest- vard Drug Group, which was acquired recently couple of us two years ago. Now we have 16 em- ments. Top states are California ($38 billion), by Cardinal Health (NYSE: CAH), joined larger ployees.” Massachusetts ($7 billion) and New York ($6 bil- companies to access capital to grow into new Sooch said Gemphire was able to sell its IPO lion). e No. 10 state was Colorado with $941 markets and therapies. in two years because “we have a late stage drug million invested in 241 startup companies. Former CEO Stephen Munk of Ash Stevens (gemcabene) that we licensed from P zer in Overall, there were 141 active venture-backed said the sale to Piramal has gone smoothly. 2011 that is in stage 2 trials.” startups in Michigan in 2016, which is a 48 per- Munk, who resigned April 30 after 20 years with LARRY PEPLIN Gemcabene is an oral once-daily drug devel- cent increase in the last ve years. Ash Stevens, was replaced by Vince Ammoscato, Mina Sooch, (le) president and CEO; Rebecca Bakker-Arkema, vice president for Clinical Drug Develop- oped to treat the large unmet medical need of Experts say the state of Michigan can do more vice president of operations. ment; Erik Sims, assistant controller; Reda Jaber, director of Marketing and Business Development; Jean patients with high cardiovascular and pancreati- to provide nancial incentives to support the life Ash Stevens develops comprehensive Pashakarnis, oce manager and executive assistant; Daniela Oniciu, vice president of Research, Develop- tis risk who are unable to reach optimal LDL sciences industry to attract and retain capital small-molecule drug substances and has 14 FDA ment and Manufacturing; Charles Bisgaier, chairman and co-founder of Livonia-based Gemphire. cholesterol or triglyceride levels with statins or (see story, Page 9). manufacturing approvals for active ingredient other therapies. Still, Sooch said the departure of P zer creat- drugs, including oncology drugs Velcade, Vidaza, company struggled with garnering capital for ment fuel for growth, Perrigo Co. LLC, founded But Sooch said young pharma companies ed more of an entrepreneurial environment in Clolar and Iclusig. growth. Banks were sometimes reluctant to loan in Allegan in 1892 and taken public in 1991, usually start out with federal and state grants to Michigan. “Maybe 100 companies have started “Piramal is starting to invest (about $8 million) money to help expand the business’ footprint has since become a worldwide pharmaceuti- hire sta and start research on their products. since then,” she said, ranging from regulatory and are looking at the 6 acres I purchased to ex- and revenue, he said. cal company that is now based in Dublin. “Unless you have a rich uncle,” Sooch said, consulting, project management, database con- pand into high-potency materials. at is excit- But in 2013 Ash Stevens completed a 15-year, Rockwell Medical of Wixom, which is develop- most pharma companies use a mix of grants and sulting and biotech startups. Dozens of support ing to see. It will cost $40 (million) to $50 million $45 million project that helped increase its pro- ing an iron-replacement drug therapy for dial- private investments from angel investors or ven- companies like MMS Holdings Inc., a Canton to develop” the additional property, said Munk, a duction by at least 50 percent. e company add- ysis patients, went public in 1998. ture capital funds to get going. Township-based database company, and Ka- research chemist who wants to hook up with an ed 18,000 square feet to its 30,000-square-foot “What I have seen as a consequence of the “ ere are lots of types of grant funding. You lamazoo-based Innovative Analytics Inc., have early stage bioscience company in Southeast manufacturing plant. It purchased a 2,250-gallon shutdown by P zer is that a lot of people didn’t can get maybe $200,000 to $1 million, but then been founded. Michigan. “ ere is so much happening here.” reactor bay with 500-gallon, 750-gallon and want to leave (Michigan) and they have started you need larger capital” to begin a clinical trial, P zer’s departure also created a new genera- Since last summer, Munk said, Piramal has 1,000-gallon vessels for mixing compounds. something here,” said Rapundalo, who added she said. tion of angel investors, as many former P zer added sales personnel and opened the door to “We will grow much faster now thanks to Pira- that P zer still has animal research and inject- “You can get one or two rounds of venture executives and researchers sold companies for more contracting opportunities for Ash Stevens. mal,” Munk said. ible drug manufacturing in Kalamazoo and is capital, then you go the IPO route because it is millions of dollars. e rst Esperion, for exam- “Sales are going slowly, but you need more spending more than $145 million to expand its very expensive to fund phase 2 and 3 drug trials,” ple, was acquired by P zer for $1.3 billion, with bricks and mortar and you need more people,” Public, private capital plant there. she said. “You look to the public market. Biotech multiple Michigan people bene ting. Gemphire Munk said. For example, Esperion bought its ETC-1002 is well received if you have a really exciting drug. also has mostly ex-P zer associates, Sooch said. Over the last 15 years, Ash Stevens has tripled As Esperion, Gemphire, Diplomat and Es- cholesterol-lowering small molecule com- It is risk-reward for many companies.” SEE GROWTH, PAGE 9 revenue to nearly $20 million, but Munk said the sen have launched IPOs, giving them invest- pound from P zer and is currently in phase 2 SEE GROWTH, PAGE 10 10 CRAIN’S DETROIT BUSINESS // MAY 15, 2017
Q&A: CHERYL GIBSON FOUNTAIN
FROM PREVIOUS PAGE
State medical society’s rst African American woman “We need to continue to allow pa- tients to have access to care and the coverage they need,” Gibson Fountain president talks history, infant mortality, Obamacare said. “We need to keep the 10 essen- tial bene ts in health insurance plans. By Jay Greene “The really cool thing about through to become the president chief of staff at the now shuttered We need to keep Medicaid expanded [email protected] of the Wayne County Medical So- St. John Detroit Riverview Hospi- and the governor (Rick Snyder) Cheryl Gibson Fountain’s father, the environment we live in ciety. It was a natural progression tal. helped us achieve that. We can im- George Wesley Gibson, was an ob- now is, although some when I was asked to run for the One of Gibson Fountain’s top prove the A ordable Care Act. But stetrician-gynecologist and a lead- president of the Michigan State priorities is to make sure access to pre-existing conditions need to be ing member of the Detroit Medical things seemed onerous, Medical Society,” said Gibson health care services through the covered” at currently a ordable rates. Society and the National Medical good things happened.” Fountain. “I want to be an advo- Affordable Care Act is maintained. In an hour-long interview, Gibson Association. Until the late 1960s, Af- cate for patients, to ensure they The AMA and the state medical so- Fountain addressed other questions rican American doctors were ex- Cheryl Gibson Fountain have access to health care, and I ciety are opposed to proposals to about her next year as MSMS presi- cluded from membership in the am honored to do it.” gut Obamacare through the Amer- dent. American Medical Association and said Gibson Fountain, a Detroit In 2008, Ronald Davis, a preven- Given the history of the AMA, ican Health Care Act, which U.S. state medical societies, forcing black native who has been involved in tive medicine specialist at Henry Gibson Fountain said she is very House Republicans have recently Why is it important that you are the doctors to form their own medical the AMA and the NMA since she Ford Health System and then-pres- proud to become the first African approved. U.S. Senate Republicans rst African American woman societies and medical schools. was a student at Wayne State Uni- ident of the AMA, formally apolo- American president of the MSMS have already expressed concerns president of the MSMS? Now, Gibson Fountain, also an versity School of Medicine. “I was gized on behalf of the AMA’s board and only the fifth female as presi- with the possibility of removing 24 Each president brings their OB-GYN, is the new president of the brought up with Dad, who was of trustees for the more than 100 dent of the 152-year-old medical million people from Medicaid and uniqueness to the presidency ... Being Michigan State Medical Society, the part of the NMA and the Detroit years of excluding African Ameri- society. She also is an attending private insurance as well as allow- the rst African American female state chapter of the AMA. Medical Society. The really cool cans from membership. Davis died physician at Beaumont Health ing states to determine whether president just allows me to bring my “When my father (now age 88) thing about the environment we of pancreatic cancer at age 52 four with staff privileges at hospitals in people with pre-existing condi- perspectives to health care. It sends a was in practice, back in the day, Afri- live in now is, although some months after that speech. Grosse Pointe and Royal Oak and tions pay higher premiums to stay good message to younger doctors. I can American doctors were not al- things seemed onerous, good “Part of what he did was historic at St. John Hospital and Medical insured. can talk about the fact there is such a lowed to be members of the AMA,” things happened.” and from that point I just moved Center in Detroit. She is the former SEE NEXT PAGE disparity in health care. Detroit has a
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entists in 2011: Dave Zacks, a clinical “ e problem with the rst peptide University connection get. at is where it begins.” GROWTH physician scientist at the University of is that it doesn’t go into water-based For example, magnetic resonance Calley stresses cooperation, increased response in opioid battle FROM PAGE 8 Michigan Eye Center; Je Jamison, solutions very well. In order to deliver Millendo erapeutics, founded imaging technology began in uni- But Sooch said there is a right time ONL’s chief science o cer; and the it, you need an injectable eye drug in 2012 in Ann Arbor as a University versity physics research labs in the By Jay Greene and a wrong time to do an IPO. late Railli Kerppola, ONL’s former that goes into the water,” Freshley of Michigan startup, raised a record 1930s, Munk said. In the 1950s, uni- [email protected] “It is all about timing. Are you pre- CEO and bioscience researcher. said. “We feel we have something $62 million from UM’s Michigan In- versity organic chemists developed Opioid misuse and addiction is pared from accounting procedures, do “ ey had an idea,” said Freshley, here.” vestment in New Technology Start- nuclear magnetic resource instru- killing thousands of people in Mich- you have executive management to who became ONL’s CEO in 2013 after In 2016, ONL raised another $1 ups program. ments. By the 1980s, university sci- igan, and Lt. Gov. Brian Calley wants build conviction on the street and with Kerppola passed away. “Why do pa- million in angel investment and re- e UM investment allowed Mil- entists used NMRs to view the struc- to ramp up e orts to combat the analysts? Do you have operational tal- tients have successful surgery for eye ceived another federal grant from the lendo to go into clinical develop- ture of rat brains. Soon after, NMRs problem. ent?” Sooch said. detachment still lose a lot of vision?” National Eye Institute, which is part of ment to test a new compound, turned into MRIs and diagnostic Calley spoke last ursday in Investors in Michigan participate in rough research, ONL scientists NIH, that Michigan Economic Devel- MLE4901, for the treatment of poly- testing on humans was possible. front of about 500 attendees of the bioscience companies in a number of found that cells activate a death cycle opment Corp. matched. cystic ovary syndrome, which a ects Commercial MRI companies like GE Second Annual ways besides just providing funding. in the eye. “By blocking that death cy- Freshley said a number of angel in- up to 15 percent of women. Millendo Healthcare and Siemens Healthcare Opioid Abuse “ ey take a seat on the board of direc- cle you can protect vision,” Freshley vestors have bought into ONL’s con- then signed an exclusive license have since earned billions of dollars and Heroin tors. ey know many are startups and said. cept, including East Lansing-based agreement with AstraZeneca for from the original university-based Overdose Solu- they participate in ways to turn com- ONL acquired an IP, a peptide that Capital Community Angel Investors worldwide development and com- research. tions Summit. panies into successes,” she said. targets the protection of liver cells. and Massachusetts Eye and Ear in mercialization of the drug. From the universities to the ven- e event at When companies are acquired by “Dave (Zacks) thought it might work Boston. Munk said research universities ture capital and angel investors, Ra- Burton Manor in larger rms or sell IPOs, Brosnan says good in the eye.” A patent was led in “We think we have a good idea that in Michigan are starting to nancial- pundalo said he has see a growing Livonia was investors cash out. “We call them exits, 2013 and research continues. has a broad utility, targeting patients ly invest more into researchers to de- interest in investing in pharmaceuti- sponsored by when they are sold to big companies Freshley said ONL received phase with retinal detachment. We think it velop startup biotech companies. cal and medical device companies the Greater De- or IPOs,” she said. “On average it takes one grant funding from the National can protect vision and improve surgi- “Harvard (University) does this over the past ve years in Michigan. Brian Calley: troit Area Health 10 years. ey know they need to be Institutes of Health to get the compa- cal outcomes. ere are other applica- on a much more massive scale. ey “ ere is more venture capital Addiction a health Council and the patient.” ny going. Over the next two years, tions with age-related macular degen- are very far ahead,” Munk said. “We money around, absolutely,” he said. care issue. Detroit Wayne In Southeast Michigan, venture ONL raised about $1 million in angel eration and glaucoma. ose are starting to do this in Michigan, “What is the old adage? Success Mental Health capital investors helped to propel investment, then it received a phase 2 (conditions) have millions of patients.” but we are far behind.” breeds success. As investors see Authority. companies like Millendo erapeutics grant for $1.5 million. During the next 18 months, Fresh- “We have great research institu- companies grow, they are more “My question of the day to you is, and ONL erapeutics, both of Ann But ONL scientists discovered an ley said ONL is expected to be ready to tions in Michigan — Wayne State, prone to put more money where can we all agree there are no throw- Arbor. improved peptide from the original start human clinical trials. “At that University of Michigan and Michi- there is history of success.” away lives? Everyone has value and ONL, which stands for “outer nu- one, ONL-1204, which hasn’t been time we will need additional capital,” gan State. ey are driving knowl- Jay Greene: (313) 446-0325 potential,” said Calley, who was clear layer,” was founded by three sci- approved for a patent yet. he said. edge creation,” he said. “People for- Twitter: @jaybgreene chair of the state’s Prescription Drug CRAIN’S DETROIT BUSINESS // MAY 15, 2017 11 Health Care FROM PREVIOUS PAGE lot of health care problems: prema- funding for it. We received only about devastating to training physicians and ture births, diabetes, heart disease, one-third of the funding we asked for. would be problematic to increasing State medical society’s rst African American woman “We need to continue to allow pa- stroke, all are higher in the African e funding is not adequate for the the number of physicians in Michi- Heroes award tients to have access to care and the American community. people who are doing the work. We gan. We need to fund GME and we coverage they need,” Gibson Fountain can do more. need more residency slots. We are ex- deadline nears president talks history, infant mortality, Obamacare said. “We need to keep the 10 essen- As a member of the Detroit Regional periencing a decreasing number of tial bene ts in health insurance plans. Infant Mortality Reduction Task What are your thoughts on the physicians and will face a shortage by The deadline is approaching to chief of staff at the now shuttered We need to keep Medicaid expanded Force, do you believe the state is state’s new online prescription drug 2020. We appreciate e orts (the state nominate innovators and leaders St. John Detroit Riverview Hospi- and the governor (Rick Snyder) doing enough to reduce the infant reporting system that is designed to Legislature made two years ago) to re- for Crain’s annual Health Care He- tal. helped us achieve that. We can im- mortality rate in Michigan? address the still-growing opioid instate GME funding. roes program, newly expanded in One of Gibson Fountain’s top prove the A ordable Care Act. But Michigan’s infant mortality rate is addiction problem? its 16th year. priorities is to make sure access to pre-existing conditions need to be 6.8 per 1,000 live births, slightly down We are trying to balance solutions How do you feel about the state New categories are focused on health care services through the covered” at currently a ordable rates. from 7.1 in 2012, compared with 6.1 for drug diversions. Doctors have to Legislature’s ongoing eort to require medical research that is Affordable Care Act is maintained. In an hour-long interview, Gibson nationally and much higher in the Af- have the ability to appropriately deliv- hospitals to publicly report patient ground-breaking and life-chang- The AMA and the state medical so- Fountain addressed other questions rican American population. For ex- er pain medications, but we needed a safety and quality information to a ing for patients and their families. ciety are opposed to proposals to about her next year as MSMS presi- ample, 14 of every 1,000 live African system to prevent abuses. e new national, nonprot organization like To make a nomination, go to www. gut Obamacare through the Amer- dent. American babies born in Michigan Michigan Automated Prescription The Leapfrog Group? This year, the crainsdetroit.com/nominate. ican Health Care Act, which U.S. die before their rst birthdays, com- System has improved functionality. It scal 2018 state budget calls for 25 A panel of six health care judges House Republicans have recently Why is it important that you are the pared with 5 of every 1,000 Caucasian helps us reduce work ow burdens percent withholding of GME funds to will choose the winners and run- approved. U.S. Senate Republicans rst African American woman babies and 7 out of every 1,000 His- and address the bad actors. hospitals that don’t report. ners-up. The deadline to nominate have already expressed concerns president of the MSMS? panic babies. is is problematic to the medical is May 22. with the possibility of removing 24 Each president brings their We have a very robust infant mor- You are an associate professor of society. We need improvements to Overall, the eight categories rec- million people from Medicaid and uniqueness to the presidency ... Being tality task force. e medical society obstetrics and gynecology at Oakland address quality. ere are di erent ognize medical innovators and pa- private insurance as well as allow- the rst African American female and the (Michigan Health & Hospital University’s William Beaumont ways to report. I am for reporting to tient advocates dedicated to sav- ing states to determine whether president just allows me to bring my Association) works very well collabo- School of Medicine. Do you have the Medicare IQR program. I have ing lives or improving access to people with pre-existing condi- perspectives to health care. It sends a ratively. We are doing a lot for the concerns about Snyder’s eorts to concerns about how the data is pre- care. tions pay higher premiums to stay good message to younger doctors. I health of the community. But after eliminate state graduate medical sented. People need good informa- Articles about the winners will insured. can talk about the fact there is such a initially funding programs to reduce education funding? tion (to make informed decisions on be published in the Crain’s July 17 SEE NEXT PAGE disparity in health care. Detroit has a infant mortality, the state has cut Any cuts to state GME would be picking hospitals and physicians). health care special section.
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get. at is where it begins.” For example, magnetic resonance Calley stresses cooperation, increased response in opioid battle imaging technology began in uni- versity physics research labs in the By Jay Greene and Opioid Abuse Task Force. ence to help reduce the availability real pain. ey go to the ER; it is not Medicaid programs are a main 1930s, Munk said. In the 1950s, uni- [email protected] E orts to solve drug addiction of opioid drugs. fake.” source of treatment and counseling versity organic chemists developed Opioid misuse and addiction is through law enforcement have been “I’d like to give you all assign- But Calley said the old MAPS on- for people with opioid addictions. nuclear magnetic resource instru- killing thousands of people in Mich- “a spectacular failure,” Calley said, ments,” he said. “Check your medi- line system took 15 minutes for doc- “A couple days ago (U.S. Health ments. By the 1980s, university sci- igan, and Lt. Gov. Brian Calley wants as the number of crimes, overdoses, cine cabinets. Most people started tors or other prescribers to get re- and Human Services Secretary Tom) entists used NMRs to view the struc- to ramp up e orts to combat the deaths, lost lives and broken fami- opioid use with prescriptions, and sults. e delay caused many doctors Price was here in Lansing with a ture of rat brains. Soon after, NMRs problem. lies continued to rise. most (prescriptions) were not for to not use the system. e new sys- $16.4 million grant to help with the turned into MRIs and diagnostic Calley spoke last ursday in “Addiction is a health care issue them.” tem takes about 0.9 seconds, Calley opioid problem,” said Calley, adding testing on humans was possible. front of about 500 attendees of the and requires a health care response.” Too many people are prescribed said, and more prescribers are sign- that he expects the federal govern- Commercial MRI companies like GE Second Annual While data for 2016 in Michigan medications that they never use or ing up to use it. ment will provide more than $1.3 bil- Healthcare and Siemens Healthcare Opioid Abuse won’t be available until later this don’t use completely. Calley suggested doctors and pain lion in funds over the next two years have since earned billions of dollars and Heroin year, 52,404 people died in 2015 of “I got a root canal and was given prescribers take another step to warn to help states combat opioid prob- from the original university-based Overdose Solu- overdoses in the U.S., according to Vicodin. I didn’t need it. at (pre- people about addiction risks that lems. research. tions Summit. the U.S. Centers for Disease Control. scription) was at risk for being divert- come with treating pain. e Trump administration recent- From the universities to the ven- e event at Michigan ranks 18th in the nation ed” to someone for resale, recre- Calley was blunt. “Oxycontin. Use ly created a commission to study opi- ture capital and angel investors, Ra- Burton Manor in for all overdose deaths, while ational or pain uses. as prescribed, but there is a good oid addiction headed by New Jersey pundalo said he has see a growing Livonia was drug-related deaths climbed from Calley said one of the main sourc- chance you could become addicted Gov. Chris Christie. interest in investing in pharmaceuti- sponsored by 1,553 in 2013 to 1,980 in 2015. es of opioid drugs are physicians who and it could destroy your life. Tell e $16.4 million grant to Michi- cal and medical device companies the Greater De- “To overcome the epidemic, we prescribe pain medications. them that. Make sure people under- gan was part of 21st Century Cures over the past ve years in Michigan. Brian Calley: troit Area Health need to work together,” Calley said. In February, the Michigan Auto- stand their risks. Make patients part- Act, which was approved under the “ ere is more venture capital Addiction a health Council and the “We can't take the attitude that it is mated Prescription System went on- ners” in reducing addiction risks. Obama administration. “ e ACA money around, absolutely,” he said. care issue. Detroit Wayne not my job. Naloxone is now avail- line to help doctors and other con- After the meeting, Calley was (A ordable Care Act) could go into “What is the old adage? Success Mental Health able over the counter (under the trolled substance providers more asked if he is concerned that changes many directions,” Calley said. “ ere breeds success. As investors see Authority. name Narcon in some pharmacies). accurately track prescription drugs in the A ordable Care Act, speci cal- are a lot of unknowns and a lot of deci- companies grow, they are more “My question of the day to you is, Schools, rst responders, law en- in an e ort to combat rising overdose ly proposals in Congress to reduce sions to make in how to meet the epi- prone to put more money where can we all agree there are no throw- forcement, families are now more deaths. federal Medicaid revenue sharing by demic.” there is history of success.” away lives? Everyone has value and equipped with antidote for overdos- “How can doctors make decisions $800 billion over 10 years, could But Calley said he doesn’t just want Jay Greene: (313) 446-0325 potential,” said Calley, who was e s .” without complete information?” Cal- damage Michigan’s e orts to combat current e orts to continue. “We need Twitter: @jaybgreene chair of the state’s Prescription Drug Calley also challenged the audi- ley said. “A person in withdrawal is in opioid addiction and treatment. to do more,” he said. 12 CRAIN’S DETROIT BUSINESS // MAY 15, 2017
CRAIN'S LIST: LARGEST MICHIGAN HOSPITAL COMPANIES Ranked by 2016 net revenue Number Full-time Net patient Total net Uncompensated Licensed- of equivalent Number of Company revenue revenue care bed employed Michigan hospitals/ Address $000,000) ($000,000) ($000,000) capacity/ physicians employees ambulatory Rank Phone; website Top executive(s) 2016/2015 2016/2015 2016 occupancy Jan. 2017 Jan. 2017 facilities Major facilities Beaumont Health B John Fox $4,145.3 $4,373.1 $57.6 3,429 905 27,318 8 Beaumont hospitals in Dearborn, Farmington Hills, Grosse 2000 Town Center, Suite 1200, president and CEO NA $4,111.8 67.5% 174 Pointe, Royal Oak, Taylor, Trenton, Troy and Wayne 1 Southfield 48075 (248) 213-3333; www.beaumonthealth.org Henry Ford Health System Wright Lassiter III 3,800.0 5,703.3 C 391.2 2,507 1,658 18,520 6 Henry Ford Hospital and its campuses: Macomb, West 2 1 Ford Place, Detroit 48202 president and CEO NA 5,000.0 NA 142 Bloomfield Twp., Wyandotte and Kingswood and Henry (800) 436-7936; www.henryford.com Ford Allegiance Ascension Michigan Gwen MacKenzie 3,469.9 NA 227.8 3,537 5,719 23,103 15 St. John Hospital & Medical Center, Providence and 28000 Dequindre Road, Warren 48092 senior VP, NA 3,364.4 NA 254 Providence Park Hospital, St. John Macomb-Oakland www.ascension.org/michigan Ascension Health, Hospital, St. John River District Hospital, Brighton Center Michigan for Recovery, Borgess Medical Center, Borgess-Pipp 3 Hospital, Borgess-Lee Memorial Hospital, Genesys Regional Medical Center, St. Mary’s of Michigan, St. Mary’s of Michigan Standish and St. Joseph Health System, Crittenton Hospital Medical Center Trinity Health Richard Gilfillan 3,179.9 D 16,339.0 E 1,143.6 2,357 NA 21,944 8 Mercy Health Muskegon and its campuses: General, 20555 Victor Parkway, Livonia 48152 president and CEO 3,006.5 D 14,338.2 E NA 30 Hackley, Lakeshore, Lakes Village, Mercy. Also Saint Joseph 4 (734) 343-1000; www.trinity-health.org Mercy Health System and its campuses in Ann Arbor, Chelsea, Oakland and Livonia University of Michigan Health Marschall Runge 2,846.9 3,066.9 116.0 1,043 0 16,305 3 University Hospital, C.S. Mott Children's Hospital, Women's System F EVP for medical 2,599.7 2,771.7 86.0 40 Hospital, UM Cancer Center, UM Cardiovascular Center, 5 1500 E. Medical Center Drive, Ann affairs UM Depression Center, Kellogg Eye Center Arbor 48109 (734) 936-4000; www.med.umich.edu McLaren Health Care Corp. Philip Incarnati 2,696.4 3,710.5 NA NA 488 22,500 12 Bay Region, Bay Special Care, Central Michigan, Greater G3235 Beecher Road, Flint 48532 president and CEO 2,522.0 3,427.9 NA 350 Lansing, Orthopedic Hospital, Lapeer Region, Clarkston, (810) 342-1100; www.mclaren.org Flint, Macomb, Oakland, Northern Michigan, Northern 6 Michigan Cheboygan, Proton Therapy Center, Port Huron, Karmanos Cancer Institute, McLaren Home Care, McLaren Medical Group Spectrum Health System Richard Breon 2,323.4 5,220.5 NA NA 885 20,707 12 Spectrum Health hospitals: Butterworth, Blodgett, Reed 100 Michigan St. NE, Grand Rapids president and CEO 2,098.2 4,625.2 NA 180 City, United, Kelsey, Special Care, Gerber Memorial, 49503 Zeeland Community, Helen DeVos Children's, Big Rapids, 7 (616) 391-1382; Ludington, Pennock, Lemmen-Holton Cancer Pavilion, www.spectrumhealth.org Meijer Heart Center, Tamarac Medical Wellness and Fitness Center, Wheatlake Cancer Center Detroit Medical Center Tony Tedeschi 1,832.1 1,937.8 103.6 1,783 152 11,370 9 Children's Hospital of Michigan, Detroit; Children's 3990 John R, Detroit 48201 CEO 1,807.3 1,927.9 56.0 80 Hospital of Michigan, Troy; Detroit Receiving Hospital; (313) 578-2442; www.dmc.org Harper University Hospital; Hutzel Women's Hospital; 8 Cardiovascular Institute; Rehabilitation Institute of Michigan; Sinai-Grace Hospital; Huron Valley Sinai Hospital. Metro Health Michael Faas 776.7 G NA NA NA NA NA NA Metro Health Southwest; Rockford; Cascade; Community 5900 Byron Center Ave. SW, Wyoming president and CEO 687.8 H 359.0 NA NA Clinic; Sports Medicine; Internal Medicine; MidTowne 9 49519 Ambulatory Surgery Center; Metro Health Park East; and (616) 252-7200; www.metrohealth.net The Cancer Center at Metro Health Village MidMichigan Health Diane Postler- 649.7 NA NA NA 260 3,820 5 MidMichigan Medical Centers in Alpena, Alma, Clare, 10 4005 Orchard Drive, Midland 48670 Slattery 584.9 611.0 NA NA Gladwin, Midland and Mt. Pleasant (969) 839-3301; www.midmichigan.org president and CEO Covenant HealthCare Ed Bruff 591.6 NA NA 643 186 3,825 NA Covenant HealthCare 1447 N. Harrison, Saginaw 48602 president and CEO NA 574.3 NA NA 11 (989) 583-0000; www.covenanthealthcare.com Lakeland Health Loren Hamel, 490.4 502.0 NA NA 450 4,021 3 Lakeland Medical Center, St. Joseph; Lakeland Hospital in 1234 Napier Ave., St. Joseph 49085 M.D. 463.1 474.6 NA 39 Niles and Watervliet; Merlin and Carolyn Hanson Hospice 12 (269) 983-8300; president and CEO Center, Stevensville; Center for Outpatient Services; St. www.lakelandhealth.org Joseph Pine Ridge: A Rehabilitation and Nursing Center; Stevensville Hurley Medical Center Melany Gavulic 422.1 422.1 NA NA 0 2,572 1 Hurley Medical Center 13 1 Hurley Plaza, Flint 48503 president and CEO 378.5 412.9 NA NA (810) 262-9000; www.hurleymc.com Holland Hospital Dale Sowders 219.0 228.0 NA 189 NA 1,598 1 Holland Hospital 602 Michigan Ave., Holland 49423 president and CEO NA 222.3 NA 0 14 (616) 392-5141; www.hollandhospital.org ProMedica Bixby Hospital Julie Yaroch 89.5 86.4 NA 88 0 NA NA Bixby Hospital 818 Riverside Ave. , Adrian 49221 president 83.6 78.9 NA NA 15 (517) 265-0900; www.promedica.org/ contactbixbyhospital Sparrow Health System Dennis Swan 10.3 1,286.3 7.3 820 257 6,968 NA Sparrow Hospital, Sparrow Carson Hospital, Sparrow Ionia 16 1215 E. Michigan Ave., Lansing 48912 president and CEO 964.5 1,277.0 NA NA Hospital, Sparrow Clinton Hospital, Sparrow Specialty (517) 364-1000; www.sparrow.org Hospital
This listing is an approximate compilation of the leading hospital companies based in Michigan. Net patient revenue listed is operating revenue, excluding bad debt. Total revenue is net patient revenue, investment income, non-operating or other revenue and premium revenue. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the companies directly or from state and federal filings. Companies with headquarters elsewhere are listed with the address and top executive of their main Michigan office. NA = not available. B Includes Beaumont Health System, Oakwood Healthcare, and Botsford Hospital after merger in September 2014. C From 2016 audited financial statement. D Michigan only. E Revenue is for entire Trinity Health System with 93 hospitals and 97,000 FTEs. F Formerly University of Michigan Health System (Michigan Health Corp.). The new name took effect Jan. 9. G From Medicare report ending in June 30, 2015. H From Medicare report ending in June 30, 2014.
LIST RESEARCHED BY SONYA D. HILL CRAIN’S DETROIT BUSINESS // MAY 15, 2017 13 DEALS & DETAILS ACQUISITIONS & distributor of industrial motion and steelmaker, has opened at 4000 MERGERS control products. Website: ritter1. Town Center, Suite 1450, South eld. J Regional Medical Imaging PC, com. Telephone: (248) 864-2867. Website: Flint, radiologist owned outpatient ssab.com. imaging centers, acquired Central EXPANSIONS Medical Imaging, Royal Oak. Web- J Tax Credits Group LLC, Cleve- J Re/Max of Southeastern Michi- site: rmipc.net. land, Ohio, a specialty tax consulting gan, Troy, has opened a Re/Max rm, has expanded its research and Cornerstone at 8311 N. Wayne Road, J Oakland Standard Co., Birming- development tax credit practice to Westland. Telephone: (734) 444- ham, a private equity rm, acquired 28175 Haggerty Road, Novi. Tele- 4227. Website: cornerstone.re- Premier Surfaces Inc., Southwest phone: (248) 505-8866. Website: tax- max-detroit.com. Ranches, Fla., a concrete contractor, creditsgroup.com. for its countertop supply platform, Clio Holdings. Website: oakland- J M&M Homecare, Livonia, a com- Deals & Details guidelines. Email standard.com. pany specializing in caring for those [email protected]. Use catastrophically injured in motor ve- any Deals & Details item as a model J Fluid Systems Engineering, Clin- hicle or workers compensation acci- for your release, and look for the ton Township, a hydraulic and pneu- dents, opened an o ce in Lansing. appropriate category. Without matic fabrication and distribution Website: mmhomecare.com. complete information, your item will company, has been acquired by Rit- not run. Photos are welcome, but we ter Technology, Zelienople, Pa., a J SSAB Enterprises LLC, Lisle, Ill., a cannot guarantee they will be used.
CALENDAR TUESDAY, MAY 16 keeping up with today’s rapidly Agency. University of Phoenix, Best Practices for Managing Com- changing business environment. South eld. $20. Website: http:// peting Rights in the Workplace. 9 Suburban Collection Showplace, www.semea.org a.m-noon. Nemeth Law PC. Attor- Novi. $219 members; $259 non- neys will discuss best practices for members. Contact: Heather Nezich, Tech Takeover: Collaborative and employers in today’s workplace cli- phone: (248) 223-8040; email: Autonomous Robots: How Do You mate. Topics include: Policing Poli- [email protected]; website: Use These Things? 8:30-10:30 a.m. tics: polarization in the workplace; https://www.aseonline.org/Confer- May 31. Automation Alley. Beh- Controlling the Conversation: pro- ences-Events/Compensation-Bene- co-MRM, a technology distributor tected speech or hostile work envi- ts-Conference and integrator, on how to successful- ronment? Culture Clash: diversity ly use new robotic tools in applica- decisions that divide; Reasonably Tech Takeover: Ransomware Rescue tions including machine tending, Unreasonable: when accommodat- Manual. 8:30-10:30 a.m. May 24. Au- fabrication, quality inspection and ing one employee disadvantages tomation Alley. A cybersecurity pre- assembly. Automation Alley, Troy. others; Religious Freedom Resto- sentation will de ne the di erent Free for members; $20 nonmem- ration Act: when do the employer’s ransomware that exists and address bers. Phone: (800) 427-5100; web- religious beliefs become a defense to how to avoid an attack, what to do if site: automationalley.com discrimination claims? Management hit and how to protect a business. Education Center, Troy. $75. Con- Speaker: Godfrey Nolan, president, tact: Pamela Perkowski, phone: (313) RIIS LLC, a mobile and web devel- 567-5921; email: pperkowski@ opment rm based in Troy. Automa- nemethlawpc.com; website: www. tion Alley, Troy. Free for members; nemethlawpc.com $20 nonmembers. Phone: (800) 427- 5100; website: automationalley.com WEDNESDAY, MAY 17 Automotive Roundtable: Staying Workshop: Business Model Canvas. Relevant in a Time of Revolutionary 6-8 p.m. May 24. Ann Arbor Score. Industry Transformation. 5-8 p.m. Every business needs a plan. Using Marketing and Sales Executives of the business model canvas, de ne Detroit. Panelists include: Julie Mar- the logic of a business visually on a tin, vice president sales, Hella; Jim single page using nine key building Seta, global vice president, automo- blocks. New Center Building, Ann tive bearing sales, SKF USA — Auto- Arbor. $10. Email: annarborscore@ motive. Moderator: Glenn Stevens, scorevolunteer.org; website: http:// vice president, MICHauto, Detroit www.annarborarea.score.org Regional Chamber. Marriott, South- eld. $50 member; $65 nonmember. Inforum 55th Annual Meeting Fea- Website: www.msedetroit.org turing Mae Jemison. 11:30 a.m.-1:30 p.m. May 25. Astronaut Mae Jemi- UPCOMING EVENTS son, a scientist, doctor and crew ASE Compensation and Benets member on Space Shuttle Endeav- Conference. 7:30 a.m.-3:30 p.m. May our, is the speaker. e Henry, Dear- 23. American Society of Employers. born. $50 members; $75 guests. Building and maintaining a success- Website: inforummichigan.org. ful rewards system that attracts, re- tains, and engages employees while The Legal Side of Business Lunch and Learn. Noon-2 p.m. May 25. A panel of legal experts in small business will Lexi Thompson Calendar guidelines. Visit discuss legal issues important to crainsdetroit.com and click “Events” business. Topics include: protecting near the top of the home page. Then, your ideas, patents, liability issues, • Tickets click “Submit Your Events” from the entities, intellectual property, con- • Corporate Hospitality tracts and more. ere will be an ex- drop-down menu that will appear. Fill • Pro-Am out the submission form, then click tended Q and A session. Panel: Da- “Submit event” at the bottom of the vid K. Tillman, of Tillman & Tillman • Sponsorship Opportunities page. PLLC; Rachel Doxsie, of Doxsie Law Firm PLLC; T.L. Summerville, of can be found More Calendar items Summerville Law Firm PLLC and Te- Visit volviklpga.com or call 734.707.0789 at crainsdetroit.com/events. nicia Moulden, of e Moulden 14 CRAIN’S DETROIT BUSINESS // MAY 15, 2017
SPOTLIGHT Dancsok leaves Community Foundation Marketing and communications executive Lisa Dancsok has left her position at the Community Foundation for Southeast Michigan to join the Arizo- na Community Foundation. She joins the Arizona Lisa Dancsok Community Foundation on Monday as chief brand and impact o cer, overseeing marketing and communications, branding, strate- gy and analysis, market research, resource development, governance and board relations and assessing and conveying the foundation’s so- cial and nancial impact. Dancsok joined the Community Foundation last August as vice pres- ident, marketing and communica- BEDROCK LLC tions. Legislation creating the tax incentive structure businessman Dan Gilbert needs to erect a 52-story skyscraper in the footprint of Detroit’s former Hudson’s store got nal Prior to that, she served as vice approval in the state Senate last week. president, corporate philanthropy, marketing and communications for Opinion Rock Ventures LLC. In that role, she created and implemented the “Op- portunity Detroit” marketing cam- Quick, quiet passage of browneld bills signals paign, oversaw Rock Ventures’ philanthropy program and helped launch the annual Detroit Home- shi in out-state attitudes about Detroit coming event. Legislation creating the tax incen- Snyder plans to sign the bills, his when he spoke out-state, people She also has served as senior vice tive structure businessman Dan Gil- spokeswoman said. would come to him afterwards and president of marketing and legisla- bert needs to erect a 52-story sky- “ is legislative package opens reminisce about their roots in the tive a airs at the Michigan Eco- scraper in the footprint of Detroit’s the door to new economic develop- city. nomic Development Corp. where former Hudson’s store got nal ap- ment projects that will be truly trans- After a speech last week in Mount she created the award-winning proval in the state Senate on Tues- formational for communities across Pleasant, Duggan said he was greet- “Pure Michigan” campaign, was day. Michigan and o ers the potential for ed with di erent feedback from local managing partner of D&D Advisors And nearly nobody noticed. thousands of new jobs,” Snyder said business owners. and held senior-level positions at In what may have seemed un- Tuesday in a statement. “ e rst one said, ‘My son is Blue Cross Blue Shield of Michigan CHAD LIVENGOOD imaginable just a year ago or so, the [email protected] But unlike past and prolonged working in the city of Detroit.’ e before that. Republican-controlled Legislature battles in Lansing over Detroit’s second one said, ‘My niece is work- passed sweeping legislation that was veloped site for up to 20 years. lighting authority, creation of a Re- ing in the city of Detroit,’” Duggan Snyder appoints initially sold as something Detroit e legislation sets a $40 million gional Transit Authority, the 2014 said. “ e third one said, ‘My grand- wanted. annual limit on the amount of tax bankruptcy “grand bargain” and last son just graduated to apply for a job Michigan Supreme Or, more speci cally, something revenue developers can capture at year’s bailout of the city school sys- in Detroit. Can you help him get a Court judge the billionaire owner of Quicken all of the sites under the Transforma- tem, this Detroit-centered legisla- job?’” Loans wanted — to help underwrite tion Brown eld Program. tion got buy-in from out-state legis- e mayor, who is running for Michigan appeals court Judge an eye-catching change in Detroit’s e legislation narrowly tailored a lators. re-election this year, sees a change in Kurtis Wilder has been promoted to skyline, and to keep fueling down- requirement that a brown eld proj- At the beginning of the year, sup- the trajectory of Michigan’s out- the state Su- town revitalization. ect in a city of more than 600,000 res- porters were trying to rebrand the bound college graduates headed for preme Court, Mayor Mike Duggan sounded as- idents — Detroit is the only such city so-called “Gilbert bills” by empha- his city. the Associated tonished that the legislation got sent in Michigan — must contain a mini- sizing how the tax-capturing legisla- “It’s changing right now and peo- Press reported. to Gov. Rick Snyder’s desk before mum investment of $500 million in tion could help fund the cleanup of ple around the state of Michigan are Republican Memorial Day as he boasted about order to qualify for the tax incen- urban eyesores from Jackson to seeing Detroit as the place where Gov. Rick Sny- its passage Tuesday at the Down- tives. Muskegon, Petoskey and Sault Ste. their children and grandchild will go der an- town Detroit Partnership’s annual Bedrock LLC, the real estate arm Marie. for opportunities,” Duggan said. nounced the meeting inside Eastern Market’s of Gilbert’s downtown empire, has “We spent a lot of time dispelling Gilbert is capitalizing on the atti- appointment Shed 3. pegged the cost of constructing a the myth that Dan Gilbert was driv- tude change with his grand plans for last week, three “Dan Gilbert dreamed this thing towering 734-foot building at $775 ing it,” said state Sen. Ken Horn, the site of the former Hudson’s de- Kurtis Wilder weeks after up six months ago and led a coali- million. e tower would contain 1.2 R-Frankenmuth, who sponsored the partment store — one of many sym- Robert Young tion with a lot of people here and million square feet of above-ground legislation. “It was a case study in bols of Detroit’s late 20th Century Jr. resigned. Wilder is considered a people around the state,” Duggan real estate, 250 residential units and good bipartisan cooperation." decline. conservative judge who has spent said. 700 below-ground parking spaces. As the Mi rive Coalition sought After the House passed the legis- nearly two decades on the appeals e legislation creates a rst-of- e Downtown Development Au- statewide support for the legislation, lation last week with little drama, the court. its-kind tax capture mechanism for thority board has given Bedrock un- Duggan has been on the road talking downtown real estate mogul reiter- Republicans have a 5-2 majority developers to help nance redevel- til Nov. 1 to nalize a development up Detroit’s turnaround before ated that passage of the legislation on the Supreme Court. Snyder ap- opment of longtime brown eld sites deal. chambers of commerce in Brighton, will be a big boost to Detroit. pointee Joan Larsen is being nomi- with a portion of new tax revenue Gilbert’s representatives thought Grand Rapids, Marquette, Mount “We look forward to the sight of nated by President Donald Trump generated on the revitalized proper- they might need that long to get the Pleasant “and some cities I’ve never numerous cranes in the sky of De- for a seat on a federal appeals ty. Legislature to pass the bill. heard of.” troit and across Michigan,” Gilbert court. She will continue to be a Su- Under the ve-bill package, de- Instead, the legislation sailed e mayor told city business lead- said in a statement on Twitter. “Time preme Court justice while her velopers could keep up to 50 percent through the Legislature with wide ers on Tuesday that “attitudes have to put our shovels in the dirt!” nomination is pending in the U.S. of the income tax generated by indi- margins of 85-22 in the House and changed” about Detroit. Chad Livengood: (313) 446-1654 Senate. viduals working or living in the rede- 32-6 in the Senate. Duggan said it used to be that Twitter: @ChadLivengood May 15, 2017 CRAIN’S DETROITCRAIN ’BUSINESSS DETROIT BUSINESS // MAY 15, 2017 Page15 15
do-based Oskar Blues Brewery Co. ARBOR acquired Alpine Township-based FROM PAGE 3 Perrin Brewing Co. and Anheus- DelSignore brought in Collins er-Busch InBev, via its Goose Island and business partner Michel Chet- Beer Co. unit, acquired a majority cuti to form Farm + Ferment, which stake in Fennville’s Virtue Cider. now owns Bigalora and his upscale “ at is what’s special about this Bacco Ristorante in South eld as deal,” said Joe Infante, partner and well as Michigan Hop Alliance farm, head of the alcohol beverage team Northport Farms and Baia Estate at Miller, Can eld, Paddock and Vineyard in Northern Michigan and Stone PLC in Grand Rapids. “It’s not Cloverleaf Fine Wine & Craft Beer InBev coming in like we’ve seen store in Royal Oak. However, don’t elsewhere. e brand will only get get your hopes up about Bigalora’s better. ese guys are established, pizza being on the menu at Arbor’s very successful restaurateurs with a brewpubs. e two will remain great reputation.” completely separate entities, the Infante served as the regulatory company con rmed. lawyer on the deal for Farm + Fer- “ ey will be separate and dis- ment, while Sarah Clarkson of tinct with Bigalora focusing on its Grosse Pointe-based Clarkson Law Italian o erings and Arbor with PLLC served as the transactional at- more American pub food,” said torney. But Loughlin warned that Mike Messink, a partner at Farm + the brewing business is far di erent Ferment. “ e consumer won’t than operating restaurants and know the same ownership structure doesn’t anticipate the trend of craft is behind them.” brewer consolidation to be led by Farm + Ferment’s expansion buyers outside the industry. plans for Arbor come on the heels of “Craft brew is not an easy busi- Grand Rapids-based Founders ness to be in; there’s a lot of compe- Brewing Co. announcing in late tition these days and it’s di cult to April that it would spend $4 million KIRK PINHO/CRAIN’S DETROIT BUSINESS di erentiate,” Loughlin said. “Arbor to renovate a building in Detroit’s Grand Rapids-based Founders Brewing Co. announced in late April that it would spend $4 million to renovate a building in is a fringe player in the scene and it Cass Corridor. It will be Founders’ Detroit’s Cass Corridor. It will be Founders’ rst taproom outside of its original in Grand Rapids. takes a lot of capital and a market- rst taproom outside of its original ing budget to compete, and that’s in Grand Rapids. Detroit-based At- cross & Judd LLP, said Michigan borhood and community with the rst time locally that restaurateurs tough for the smaller players unless water Brewery opened a new brew- brewers are seizing the opportunity ability to control the lifestyle vibe of have acquired a brewer. Craft beer they have a real cult following. pub in Grand Rapids in October, its to build their brand outside of their their brand,” Loughlin said. “It’s M&A activity in recent years has Hopefully these guys have the abil- rst outside of metro Detroit. home brewery and retail opera- better than just being another six- been dominated by larger conglom- ity to leverage some of their other Dennis Loughlin, senior counsel tions. pack on the store shelf (in that mar- erate brewers or private equity ac- businesses.” and member of the craft brewery “In these cases, they are bringing ket).” quiring smaller operations. In 2015, Dustin Walsh: (313) 446-6042 practice at law rm Warner Nor- the beer to the people, the neigh- Farm + Ferment represents the private equity-owned, Colora- Twitter: @dustinpwalsh
JOB MARKET FRONT PLACE REAL ESTATE POSITIONS AVAILABLE AUCTIONS AUCTIONS WATERFRONT PROPERTY VACANT LAND û ENGINEERING û UNSURPASSED STERLING HEIGHTS, MI Hitachi Automotive Systems Americas, PETOSKEY AREA 3.4 Ac. Vacant Land Inc. has the following job opportunities DESIGN & LUXURY FAMILY RESORT OR 33353 & 33431 Mound Rd. in Farmington Hills, MI: RETIREMENT HOMES & CONDOS Zoning Comm’L/Resid’l 178 Rd. Frontage PREMIER REAL ESTATE AUCTION less 50 Foss Rd. Easement Lead Engineer [HR2017-01]: Oversee all MAY 31 | 2PM EST | LIVE & ONLINE product development activities and multiple Call Tom @ 586-759-7220 processes used in automotive suspension [email protected] design and applications, up to 70% domestic/int’l travel required; AUCTIONS Engineer II [HR2017-02]; Provide engineering support for technical drawings ONLINE ONLY and design requirements; • From $10 Million to $100,000 Commercial Real Estate Auctions Sr. Engineer [HR2017-03]; Develop, • Serving Clients throughout Northwest Michigan design and update battery management • I will function as your Buyer Broker Both Active until Tues. May 30th system control module, up to 50% domestic • My Exclusive DISCIPLINED BUYER SYSTEM Flat Rock, MI., Retail Bldg. ends @ 1pm travel required to various unanticipated 1389 PILGRIM AVENUE Outline…explains how I will represent YOUR and locations. REQUEST FOR PROPOSALS BIRMINGHAM, MICHIGAN 48009 Best interests. Call or email your address please 1.4 Acre Vacant Land Mail resume to Attn: T. Menning Downtown Saline, MI. ends at 2pm. 34500 Grand River Ave. OPEN HOUSE: MAY 30, 1PM-4PM 6,464+/- Sq.Ft. Upper Joe Blachy See info & bid at: Farmington Hills, MI. 48335 INVESTMENT (231) 409-9119 www.rolloandbrad.com Must ref job code to be considered. 2,900+/- Sq.Ft. Finished Lower Level Call anytime between 7am & 10pm Call 734-439-7939 CONSULTANT RFP BID ONLINE & VIEW MORE INFO AT Email: [email protected] Website: joeblachy.com MISCELLANEOUS PAMELAROSEAUCTION.COM/PILGRIM The General Retirement System 420 Howard St., Petoskey, MI 49770 The Crain’s Reader City of Detroit has issued a Pamela K. Rose VACANT LAND SURVEY Request for Proposal for AUCTION COMPANY, LLC 26.5% influence the purchase of Investment Consulting Services. 877-462-7673 LIVINGSTON COUNTY office/industrial and commerical space. Help them find you by advertising in ANALYZE The deadline for submitting a 7.72 Ac. Vacant Industrial Prop., $299,900 pamelaroseauction.com Utilities / Rail at Site / Ready to Develop Crain’s Real Estate Section. proposal is June 2, 2017. Pamela K. Rose, Broker, Auctioneer Contact Paul Harmon MATCH Michael Murray, REALTOR®, Auctioneer 313.446.6086 • FAX: 313.446.034 7 For further information please Harmon Real Estate E-Mail: cdbclassif [email protected] 517-944-4550 or Crain’s Classifieds Gets Results visit our website: www.rscd.org [email protected]
INDUSTRIAL SERVICES INDUSTRIAL PROPERTY OFFICE SPACE C.W. JENNINGS ROMEO, MI PHOTO STUDIO CrainsDetroit.com/JobConnect | INDUSTRIAL EXCHANGE 75 Ac. Vacant Ind’l zoning, poss. multi- 9/WOODWARD Global Industrial Consulting resid’l or comm’l. opp. All Util’s. 1,334 2,500 Sq. Ft. ~ $1,500 Per Month Call or email today for information Rd. Frontage, 1/2 Mi. from X-way exit. Also on a custom advertising plan! Construction • Acquisitions 1,000 Sq. Ft. ~ $500 Per Month. [email protected] Exporting • Financing Call George @ 586-531-2436 313.446.6068 (855) 707-1944 [email protected] Call 248-398-7000 16 CRAIN’S DETROIT BUSINESS // MAY 15, 2017 Detroit’s reconstituted Workforce can actually begin to solve some of food producers who are looking to money to completely renovate the CHASE Investment Board has put the city’s these challenges,” Scher said. ramp up production and sale of their building.” FROM PAGE 1 CEOs in the same room for the rst J.P. Morgan Chase has also lent its culinary creations. Her new restaurant is a mile away “If the city is growing and we can put time in years to work on issues a ect- technical support and know-how to Detroit Vegan Soul, an all-vegan from a Chase bank branch on Grand more branches in and more bankers in ing the workforce, said Je Donofrio, nonpro t organizations through its restaurant that opened in 2013 in West River, a corridor dominated by fast … that is supporting our investment,” director of workforce development for Detroit Services Corps program. Since Village, is opening a second restaurant food and carry-out restaurants. said Peter Scher, the head of corporate Duggan. 2014, 68 J.P. Morgan Chase employees on the northwest side with the help of “You don’t have any healthy options responsibility at J.P. Morgan Chase. One initiative that came out of that from 10 di erent countries have come J.P. Morgan Chase’s nancing. there,” Ussery said. “So we’re going to To grow their investment, J.P. Mor- board was a massive project led by to Detroit for three-week sessions to Restaurant co-owner Kirsten Ussery bring a healthy option and a restaurant gan Chase has deployed its money and Quicken Loans to digitize the high consult 16 nonpro ts on strengthening has borrowed $100,000 from Chase’s where people who live in the area can human capital beyond a bank’s nor- school transcripts of Detroit Public their organizations. “It is not enough to Entrepreneurs of Color Fund to help actually sit down and have a meal.” mal channels of consumer and com- Schools graduates who need the re- write a check and make an invest- nance the purchase and renovation mercial lending. cords to get jobs. Lear Corp. donated ment,” Scher said. of a second building at 19614 Grand Loans repaid Scher and his team have been in- the scanners and Quicken has provid- River Ave. in North Rosedale Park. volved in a wide variety of initiatives ed a small army of employee volun- Food business loans She also got a $60,000 grant from the Following Duggan’s lead, J.P. Mor- across the city, from loan funds for teers to scan the documents. Motor City Match program to pur- gan Chase has placed an emphasis on small business growth and real estate “ is is a great example we’re trying e bankers also have a taste for De- chase and rehabilitate the building, dispensing its money in the city’s development to helping underwrite to use to replicate around the world: If troit’s burgeoning food businesses. which should be open by fall. neighborhoods, where the comeback the research and data-driven strategies you can get the right people around the J.P. Morgan Chase invested $1.7 mil- “It wouldn’t have happened with- of Midtown and downtown has been for Mayor Mike Duggan’s workforce table, the right employers, the right lion in the Eastern Market’s Shed 5, out the fund,” Ussery said. “We slow to spread. initiatives. trainers and the right data, then you creating new kitchen space for small wouldn’t have been able to get the e bank helped fund the Motor City Mapping initiative that Duggan has said was integral to reassessing the values of 380,000 properties. e citywide reassessment is credited with lowering property tax bills for more than half of Detroit’s property owners and stopping the tax foreclo- sure crisis from getting worse. J.P. Morgan Chase has committed a third of the $150 million toward com- munity development, nancing 21 projects and leveraging $147 million from other investors through Arling- ton, Va.-based Capital Impact Part- ners and Invest Detroit, which is a li- ated with Business Leaders for Michigan. Eric Larson, CEO of the Downtown Detroit Partnership, said the Chase FALL REGISTRATION NOW OPEN bank investments in Detroit have helped “validate” the business case for more outside investors to come to town. “ e single most important thing we can continue to do is nd outside validation and outside investment into what we all know is happening,” Larson said. “... You’ve got to get other people from outside drinking the Kool-Aid too.” READY. SET. Of the $50 million for community development, $40 million is dedicat- ed to long-term exible nancing and $10 million will be granted for con- struction or rehabilitation of residen- tial units and commercial space, said Kevin Goldsmith, a community de- velopment program manager at Chase bank. Chase is using Detroit to develop a GR W. “sustainable market-based approach” for lending through community de- velopment nancial institutions like Invest Detroit and Capital Impact LAUNCH YOUR CAREER TO THE NEXT LEVEL Partners, Goldsmith said. “We really do see this as not just a Crain’s Leadership Academy is a unique multisession development experience, handout,” Goldsmith said. “ is is re- ally ... an investment in the business designed for the next generation of leaders. This 3-month, 5-session program and serving the market-based ap- guides participants on a journey of personal discovery and cross-sector proach here in Detroit.” Detroit businesses have de ed ex- perspectives, through interactive activities and thought-provoking discussions. pectations of the New York bankers. Chase bank expects $13 million of the roughly $75 million in Detroit loans to repaid by the end of 2019, Scher said. EARLY BIRD NOMINATIONS START NOW. “ ere were people at J.P. Morgan in – END SEPTEMBER 1 – New York who thought we’d never see any of it back,” Scher said at Wednes- day’s event. “We were fairly con dent we’d start seeing it back in 10 years. But the fact that we’ve now had $7 million returned in these funds … and we can For more information and to nominate, visit crainsdetroit.com/leadershipacademy redeploy that capital back into the city, that’s something that none of us had expected.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood CRAIN’S DETROIT BUSINESS // MAY 15, 2017 17 CHURCHES FROM PAGE 1 As real estate values and develop- ment interest rise along the route, reli- gious institutions have better options that may just be too good to refuse. Last week, Crain's reported that Ecumenical eological Seminary, which occupies and owns the former First Presbyterian Church on Wood- ward at Edmund Place in Brush Park, listed the property for sale for $4.85 million. e goal, said the Rev. Stephen Butler Murray, president of the sem- inary, was to move into more mod- ern space and focus its nancial re- sources on education, not its annual $200,000-plus maintenance costs. ose costs amount to nearly 20 per- cent of its $1.2 million budget. But these days, it sits a block away from the soon-to-be-completed Lit- tle Caesars Arena for the Detroit Red Wings and Detroit Pistons, in what is planned as a $1 billion-plus develop- ment area called e District Detroit, which is slated for o ce, residential, entertainment and retail develop- ment over the next several years. “ is property, for a long time, was not worth very much and now, with all of the development happening around us, we suddenly nd ourselves on a property with something that has KIRK PINHO/CRAIN’S DETROIT BUSINESS some real worth to it,” Murray said. Detroit-based Exclusive Realty has the listing for the former First Presbyterian Church, the owners of which are asking $4.85 million for the building and site. Kevin Messier specializes in sales of institutional buildings — such as cent, while those saying it’s “some- churches and schools — as associate what important” fell 3 percentage broker for Utica-based Real Estate points from 30 percent to 27 percent. Professional Services Inc. e sample size in 2007 was 1,275 He said in particular that the First and in 2014 it was 982. Presbyterian sale represents a strong Attendance at religious services has possibility to cash in on an attractive also fallen, according to Pew. In 2014, real estate market. 33 percent of respondents said they at- “ ey want to cash in on a good tended services at least once a week, a thing if they can.” Jayson Boyers: Khari Brown: How 5 percentage-point drop from 38 per- How the property will eventually Opportunity to do you repurpose cent in 2007. irty- ve percent said be used following a sale is anyone’s come to area. churches? they attended once or twice a month or guess, Messier said, adding that he a few times a year in 2014, compared to has seen a church in Ferndale being spearheaded the fundraising cam- 34 percent in 2007, while those saying turned into storage units and some paign, was out of town last week and they seldom or never attended rose to turned into restaurants and even fu- could not be reached for comment. 32 percent in 2014, a 5-point increase neral homes. In a letter to Kickstarter backers from 27 percent in 2007. “To me the highest and best use is posted on the Bethel Community Khari Brown, a Wayne State Uni- what it’s designed for, but these guys KIRK PINHO/CRAIN’S DETROIT BUSINESS Transformation Center’s website, versity associate professor of sociol- are looking to see if they can take ad- The former First Presbyterian Church opened in 1891 at Woodward Avenue and Hinds encouraged donations to the ogy whose research focuses on reli- vantage of the current market and Edmund Place in Detroit. organization and wrote, “We are not gion and politics, says attendance in what’s happening downtown.” giving up, and in the weeks ahead Detroit churches has declined in the Messier’s company’s website lists Cleary, said Historic Little Rock ap- church from Grace-to-Grace in 2015; we’ll be meeting and listening to all last half-century as the population more than 60 churches for sale; it av- proached the school about putting it had been owned by a variety of de- of the feedback you give us as we has fallen from well over 1 million erages about 40 sales per year, he said. an education center in the building, nominations since its construction re-commit ourselves to the work people to just shy of 700,000. which is owned by the city as a for- shortly after the Civil War. ahead: restoring this building and But in particular, he said, as some Creative reuse mer recreation center. Cleary sub- And in Grosse Pointe Park, $1.8 the relationships that will make it a churches became not just places of leases the space from Historic Little million was spent converting the for- sacred and beautiful place again.” worship but also heavily involved in Earlier this year, Holley and the Rock, Boyers said. mer Grace United Church of Christ on conservative social causes, younger small private Howell-based business “We wanted to be a part of not just Lakepointe Street into Atwater in the Reimagining church generations that trend liberal on school Cleary University announced going to downtown Detroit, but be Park, a 7,500-square-foot brew house those issues were turned o . that Cleary would use some of the part of revitalizing a neighborhood,” for Detroit-based Atwater Brewing Co. Of the 13,463 parcels in the neigh- “Sexual morality, abortion,” Historic Little Rock’s master-leased Boyers said. “We saw it as an oppor- When it opened in 2014, it had 40 tap borhoods surrounding Woodward Brown said. “ at is not appealing to space in the Considine Little Rock tunity to come to the area and get handles and could seat 150 inside north to Highland Park, 237 (1.8 per- a lot of young people, and that is part Family Center at its Detroit campus, people education, get them plus 80 in an outdoor biergarten. cent) are classi ed as “religious,” ac- of what contributed to declines in at- o ering classes and training pro- equipped for jobs.” But not all e orts to repurpose or cording to city data compiled by tendance among millennials.” grams. e space, located in about 7,000 revitalize houses of worship are suc- Crain’s. ere is a concentration north erein lies one of the keys to get- Holley said the school is an op- square feet, is expected to be com- cessful at rst. of Grand Boulevard as a few dozen ting people back to the pews and portunity for members of the com- plete in the fall and will provide edu- Earlier this year, the former Temple parcels classi ed as religious pepper contributing to the bottom line, munity to further their education. cation to about 200 students when Beth El at Woodward and Gladstone the area, cloistered together on Pin- Brown said. “We put a culinary school here, and “fully up and running,” Boyers said. Avenue across from Holley’s church gree and Blaine streets and Gladstone “How do you repurpose the after that I’m going to put a cosmetol- Other projects in the Detroit area north of Grand Boulevard was the tar- Avenue, according to city records. church, reimagine it, advertise it in a ogy school in the neighborhood, and demonstrate the potential of former get of a crowd-funding campaign that e Pew Research Center’s Reli- way that is not judging? Perhaps we we are trying to get a distribution cen- religious buildings. fell short of its $100,000 goal to re- gious Landscape Study shows de- can market ourselves as a place they ter to repackage things so we can get In Corktown, an old church was model the Albert Kahn-designed clining importance of religion in would want to socialize. We are con- jobs to people that don’t require mas- converted into Assemble Sound, a building on Woodward. Nearly Michigan in the last several years. A sistent with some of their ideologies ter’s degrees and bachelor’s degrees, recording studio, community space $46,000 was committed, but as a Kick- 2014 survey shows a drop in 4 per- of revitalizing the city, and we can but high school diplomas and associ- and co-working studio for musicians starter campaign, because it didn’t get centage points of people who say re- take advantage of that.” ates degrees,” he said. near the Michigan Central Station. $100,000, it receives none of the ligion is “very important,” falling Kirk Pinho: (313) 446-0412 Jayson Boyers, president of Assemble purchased the 1871 $46,000. Pastor Aramis Hinds, who from 54 percent in 2007 to 50 per- Twitter: @kirkpinhoCDB 18 CRAIN’S DETROIT BUSINESS // MAY 15, 2017
Detroit City FC, which opened it Corporate dollars puts its name across the front of the LEAGUES sixth National Premier Soccer League team’s home and away jerseys and FROM PAGE 3 season on Friday, has been noted for Both teams have been successful in gives it signage at the team’s Ham- www.crainsdetroit.com Baseball beginnings its millennial or hipster fanbase, es- attracting corporate sponsorships. tramck stadium as well as on the Editor-in-Chief Keith E. Crain pecially the rowdy “Northern Guard” at’s because Detroit City FC and team’s website and Facebook page. Executive Vice President KC Crain Publisher/Editor Ron Fournier, (313) 446-1674 or e USPBL, which added a fourth supporters. the USPBL ll a gap in the market- Other major corporate sponsors [email protected] team at Jimmy John’s Field for this “After the rst goal was scored at place for companies that want to ad- include Detroit-based Strategic Sta- Group Publisher Mary Kramer, (313) 446-0399 season, is the brainchild of Rochester our very rst match some red smoke vertise at ballgames, industry insiders ing Solutions, Better Made, Motor- or [email protected] Managing Editor Michael Lee, (313) 446-1630 sports entrepreneur Andy Appleby, a started spreading from the support- say. City Hotel Casino, Henry Ford Health or [email protected] former Detroit Pistons executive who ers section. A few of us owners looked “Small businesses seek opportuni- Systems and Lawrence Tech. Director, Crain Custom Content Kristin Bull, launched his own sports marketing at each other and asked, ‘Do we al- ties to take customers to sporting DCFC ownership from the start (313) 446-1608 or [email protected] Product Manager/Marketing and Events Kim Winkler, and services rm in 1998. He previ- low smoke? I guess we do now,’” Kro- events,” Dietz said. “Sports marketing knew it had to work hard to convince (313) 446-6764 or [email protected] ously owned a Single-A baseball club pp said. is a smart play. If your budget doesn’t companies to spend money on an Digital Product Manager Carlos Portocarrero, (313) 446-6056 or [email protected] and a British pro soccer team, experi- allow you to be a sponsor with the big amateur club. Membership Director Nancy Hanus, (313) 446-1621 ences he’s said shaped his business The ticket advantage four, but you want to have a presence “We’ve also focused on creating or [email protected] strategy: Provide rst-class customer in sports marketing, then these are sponsorship activations that are Creative Director David Kordalski, (216) 771-5169 or [email protected] service and accessible pricing to a One signi cant selling point that your entry level platforms.” unique and that stand out from what News Editor Beth Reeber Valone, (313) 446-5875 family-friendly sports product. minor league teams have over their Appleby’s stadium and league have you might see at some of the larger or [email protected] So, he spent $16 million to build a major league competitors is ticket naming rights, signage, and other cor- sporting events,” Kropp said. “We Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or [email protected] 1,900-seat ballpark that opened in pricing. It’s far cheaper to take a fam- porate sponsorship deals that brought crowd-sourced our jersey sponsor by Design and Copy Editor Beth Jachman, (313) 446-0356 2016 along M-59 in Utica, and ily to a Detroit City FC match or US- in $3 million last season. Among the having each player wear a dierent or [email protected] launched a three-team (now four) PBL game than to a major league companies with suite or other corpo- sponsor logo from a local small busi- Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] league of players age 18 to 25 who ha- game. rate sponsorship deals at the ballpark ness. Many of our sponsors were bars Newsroom (313) 446-0329, FAX (313) 446-1687, ven’t been signed by Major League Prices for DCFC’s matches range are Budweiser, General Motors Co., and restaurants, so in exchange for TIP LINE (313) 446-6766 Baseball’s a liated farm teams. Ap- from $10 for general admission to Ford Motor Co., AAA, Scotts Mira- the sponsorship of a player we REPORTERS pleby’s concept is a 75-game $50 for VIP seating in its renovated cle-Gro Co., Pepsi and Birming- planned after-match parties at the Tyler Cliord, breaking news. (313) 446-1612 or May-September schedule, played stadium. Season tickets start at $70 ham-based Belfor USA. sponsor’s location to drive business tcli[email protected] Annalise Frank, breaking news. (313) 446-0416 or round-robin style, mainly on week- for entry to at least 10 games. Admis- In 2015, Troy-based mortgage and introduce people to some places [email protected] nights and weekends. sion is free to all games for children 5 lender United Shore Financial Ser- that they hadn’t been to before.” Jay Greene, senior reporter Covers health care. Despite being just 25 miles away and younger. vices LLC signed a 10-year deal to put Corporate funding may grow as (313) 446-0325 or [email protected] Chad Livengood Covers Detroit rising. (313) 446-1654 or from the Detroit Tigers at Comerica In the USPBL, individual game its name on Appleby’s baseball league, the team seeks to become a full-time [email protected] Park, the concept worked: e US- tickets begin at $6 for lawn seats. e and Champaign, Ill.-based Jimmy professional club in one of the coun- Kurt Nagl Breaking news. (313) 446-0337 or PBL averaged 3,200 per game, and most expensive single-game ticket is John’s Franchise LLC and its franchi- try’s two second-tier leagues under [email protected] Kirk Pinho Covers real estate. (313) 446-0412 or sold out 42 of 75 games last season at $35 for a front-row seat. Seasons tick- sees jointly signed a 10-year contract Major League Soccer, a move that [email protected] Jimmy John’s Field. It opened its sec- ets for all 75 games begin at $750 and for the stadium name. will require major outside invest- Bill Shea, enterprise editor Covers the business ond season on ursday with 4,000 max out at $3,000, with each level of Companies also have bought all of ment to the tune of millions of dol- of sports. (313) 446-1626 or [email protected] Lindsay VanHulle Lansing reporter. (517) 657-2204 fans in attendance. pricing linked to increasing numbers the premium seating at Jimmy John’s lars. DCFC is talking to the New York or [email protected] Appleby said the league is pro t- of perks. Field: All 24 suites are leased under City-based North American Soccer Dustin Walsh, senior reporter Covers economic issues. able, thanks in large part to corporate By contrast, here are the average ve- to seven-year deals that cost League and the Tampa, Fla.-based (313) 446-6042 or [email protected] Sherri Welch, senior reporter Covers nonprots and sponsorship dollars he personally single-game ticket prices, per Forbes, $35,000 to $55,000 annually, and 23 United Soccer League, and hopes to philanthropy. (313) 446-1694 or [email protected] secured during his years working in for Detroit’s four major league teams: four-seat half-moon shaped tables are make the move possibly as early as ADVERTISING the industry. J Tigers: $30 leased for $20,000 annually under 2018. e team’s current league, the Sales Inquiries (313) 446-6032; FAX (313) 393-0997 J Lions: $80 ve-year agreements. National Premier Soccer League, is a Director of Sales Lisa Rudy Soccer success J Pistons: $32 Warren-based Michigan Surgery fourth-tier organization in American Senior Account Manager Katie Sullivan J Advertising Sales Gerry Golinske, Sharon Mulroy, Red Wings: $60 Specialists PC leased one of the tables soccer’s organizational pyramid. Diane Owen In the case of DCFC, the ve e big league clubs each oer this season. “( e table) is mainly be- Classied Sales Manager Angela Schutte, founders sensed that a wave of young ticket specials and other discounts to ing used for employee engagement,” In the future (313) 446-6051 Classied Sales Lynn Calcaterra, (313) 446-6086 professionals moving into Detroit lure fans, and many have turned to said Amanda Uppleger, the compa- Events Manager Kacey Anderson were potentially soccer fans. e dynamic pricing that lets the market ny’s business development coordina- It’s impossible to know if the soc- Marketing and Sales Promotions Manager sport has been gaining ground in the dictate ticket cost based on demand tor. “ is is a new local space, a great cer and baseball organizations will Christina Fabugais-Dimovska Senior Art Director Sylvia Kolaski United States with the success of Ma- — but they still are more expensive clean space and good family fun.” sustain their success. Special Projects Coordinator Keenan Covington jor League Soccer and the rising pop- than the minor leagues. e count- Detroit City FC, despite being an Detroit City FC faces a potential Sales Support Suzanne Janik ularity of European pro soccer er-argument, of course, is that the amateur team, has grown gross reve- threat from a bid by a pair of billion- Media Services Manager Hussein Abdallah broadcasts on TV. minors don’t oer fans the chance to nue by 40 to 45 percent growth annu- aire pro basketball owners, Detroit CUSTOMER SERVICE Rodney Fort, a University of Mich- see a Miguel Cabrera or Matthew ally. Although the team doesn’t dis- real estate industrialist Dan Gilbert Main Number: Call (877) 824-9374 or [email protected] igan sports economics professor, Staord. close its nances, it has con rmed a and private equity mogul Tom Gores, Subscriptions $59 one year, $98 two years. Out of state, said DCFC’s success is a blend of For families with small children, $1 million operating budget this sea- for a Major League Soccer expansion $79 one year, $138 for two years. Outside U.S.A., add $48 “right place, right time, plus growth the lack of star players won’t matter. son. It also has nanced nearly $1 mil- team that would play in a proposed per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. in interest in the game at large.” He Appleby’s baseball stadium is espe- lion in xes and upgrades to its stadi- soccer-speci c stadium and mixed- Single Copies (877) 824-9374 also noted that the soccer club’s cially tailored for that demographic, um. As an amateur team, it doesn’t use downtown development. MLS is Reprints (212) 210-0750; or Krista Bora at ownership has “deep Detroit roots with a kids’ play area that includes a have player labor costs — they’re adding four teams over the next few [email protected] To nd a date a story was published (313) 446-0406 and a really keen sense of its fan- mini baseball diamond. mostly college kids. years, and it’s unclear what might be- or e-mail [email protected] b a s e .” Of all the major league teams lo- Here’s how the team’s revenue ma- come of DCFC if Detroit is awarded a “We recognized that there were cally, the Detroit Tigers target fami- trix works: A quarter comes from mer- team. Crain’s Detroit Business is published by Crain Communications Inc. soccer fans across southeastern lies most heavily. ey allow kids to chandise sales while 45 percent is As for baseball, attendance this Chairman Keith E. Crain Michigan who were watching Cham- run the bases after Sunday games from season and single-game ticket season will reveal whether interest in President Rance Crain pions League and Premier League and have plenty of promotions tied sales. Another quarter is from corpo- the USPBL has worn o, Dietz said. Treasurer Mary Kay Crain Senior Executive Vice President William A. Morrow matches on television who also to children and families, along with a rate sponsorships, and the nal ve “We’ll nd out if the appetite in Executive Vice President/Director of Strategic craved a live soccer experience,” Ferris wheel and merry-go-round. percent is from concession sales. Year 2 is still there,” he said. Operations Chris Crain DCFC co-owner Todd Kropp said. Still, a trip to a Tigers game isn’t Metro Detroit Chevy Dealers is the Bill Shea: 313 (446-1626) Executive Vice President/Director of Corporate Operations KC Crain Unlike the USPBL and even other cheap for many. Last season, the av- team’s title sponsor for the third Twitter: @Bill_Shea19 Vice President/Production & Manufacturing soccer clubs, DCFC’s owners bucked erage cost for a trip to Comerica Park straight year. Last year, the auto dealer Crain’s reporter Kurt Nagl Dave Kamis convention on who it targets as fans. for four people came in at $214.52, group signed a multi-year deal that contributed to this story. Chief Financial Ocer Bob Recchia Chief Information Ocer Anthony DiPonio “So many teams at our level focus according to the 2016 Fan Cost Index G.D. Crain Jr. Founder (1885-1973) on building their organizations by fo- published by Chicago-based Team Mrs. G.D. Crain Jr. Chairman (1911-1996) cusing on getting kids and families to Marketing Report. e estimate was Editorial & Business Oces INDEX TO COMPANIES 1155 Gratiot Ave., Detroit MI 48207-2732; matches. at’s important for growth based on the purchase of four adult These companies have signicant mention in this week’s Crain’s Detroit Business: (313) 446-6000 to be sure, but we ipped that model tickets at the average price of $28.88, AlphaUSA 3 J.P. Morgan Chase & Co. 1 Cable address: TWX 248-221-5122 AUTNEW DET initially and focused more on young two $5 beers, four $4.50 soft drinks, CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly adults when thinking about things four $4.75 hot dogs, $20 parking for a Arbor Brewing Co. 3 Jae Raitt Heuer and Weiss 8, 9 by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional like the design of our merchandise single vehicle, and two $16 caps. e Ash Stevens 8 Lycera 8 mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S and how we have leveraged social average fan cost index across all of DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, Bigalora 3 MichBio 8 MI 48207-9732. GST # 136760444. Printed in U.S.A. media,” Kropp said. MLB’s 30 clubs last season was Contents copyright 2017 by Crain Communications Inc. All rights e plan worked, and the team $219.53. Detroit City FC 3 Millendo Therapeutics 8 reserved. Reproduction or use of editorial content in any manner without permission is prohibited. has witnessed per-game attendance e USPBL oers a $58 package Detroit Vegan Soul 1 United Shore Professional Baseball League 3 grow from 1,200 in the rst year to that includes four box seats, four hot Gemphire Therapeutics 8 IBEW 5 more than 5,000 a game last season. dogs and four soft drinks. CRAIN’S DETROIT BUSINESS // MAY 15, 2017 19 THE WEEK ON THE WEB RUMBLINGS MAY 6 - 12 | For more, visit crainsdetroit.com
Alibaba wants the Carhartt Woman” campaign. J Metro Detroit’s 33 acute-care hos- to pair local Detroit pital pro ts were down slightly in 2015 compared with 2014. In 2015, companies Digits average pro ts were posted at 4.6 A numbers-focused look at last percent of net patient revenue com- with Chinese week’s headlines: pared to 5.1 percent in 2014. But consumers for-profit Detroit Medical Center 74,000 and eight-hospital Beaumont ichigan food entrepreneurs Health led the way with gains in rev- and farmers may gain an un- square feet enue, income and market share, ac- Mlikely lifeline to expanding their The amount of space planned in a cording to the 2016 Michigan Health businesses — the Internet in China. new downtown Royal Oak oce Market Review. China’s largest e-commerce com- building. Construction is J Ann Arbor-based Renaissance Ven- pany, Alibaba Group Holdings Ltd., scheduled to begin this week now ture Capital Fund has teamed with the hopes to pair local food producers that 85 percent of the building’s Michigan State University Foundation and small- and medium-sized food space has been pre-leased by to open an o ce in the East Lansing companies with China’s rising mid- three major tenants, including the Technology Innovation Center. ANNALISE FRANK/CRAIN’S DETROIT BUSINESS dle class, which is larger than the en- developer. J A new gym called Area 45 Fitness The Caucus Club in the Penobscot Building in downtown Detroit rst opened in 1952. tire U.S. population, through its in- that uses black lights and high inten- augural Gateway ‘17 event on June 4.1 million sity interval training techniques has 20-21 at Cobo Center in Detroit. The number of visitors Belle Isle opened at 3536 Rochester Road in e event is driven by Alibaba’s Park saw in scal 2016, surpassing Troy. Legendary Caucus Club need to expand internationally and the state Department of Natural J Real estate businessman Moses provide Chinese consumers with Resources’ expectations. The Shepherd is entering the oil industry high-quality products prevalent in park also earned $514,000 in with the launch of Ace Petroleum restaurant re-opens this region, said Jack Ma, founder revenue, a 14 percent increase LLC, headquartered in Rosedale Park. he Caucus Club, located in the Executive Chef Rick Hussey's new and chairman of Alibaba, in a Tues- over the previous year. J Autobooks LLC has moved from Penobscot Building in down- menu will focus on steaks along with day conference call with reporters. Troy to the Madison Building in Ttown Detroit, opened for dinner last table-side Caesar salads, seafood, “ e American Midwest is the 35 years downtown Detroit, drawn to the Friday, the Detroit Free Press raw bar fare, and a modern rendition center, where there are so many The length of time the buzz surrounding the expanding reported. of a once-famous cocktail called the great companies and agricultural Renaissance 500 Tobacco tech startup community in the city. e legendary restaurant origi- Bullshot, invented at the Caucus products,” Ma said. “China needs Shoppe was a tenant in the J Automotive supplier Roush In- nally opened in 1952 and closed Club in 1952. e original cocktail great food and food products. We Renaissance Center before owner dustries Inc. has opened an engi- during tough economic times in recipe featured vodka and beef broth. badly need good food, but with the Ramzi Shaya announced the neering center in Troy that will bring 2012. Barbra Streisand famously got ere will be live music every eve- pollution we cannot produce that business would close at the end about 150 jobs to Oakland County, her start there as a lounge singer in ning beginning at 7 p.m., according many food products in China.” of May aer making little to mostly in engineering and data 1961. It's now under the ownership to its website. e event, which is procurement nothing in the last several years. science. of George Sboukis and underwent a e Caucus Club is located at 150 focused, is designed to teach Michi- J e restaurateurs behind Big Rock full-scale remodel. W. Congress St., Detroit. gan companies the value of Aliba- Chophouse and Gri n Claw Brew- ba’s services, which are similar to a year before and 7.8 percent from ing Co. in Birmingham, Norm and Amazon, and to create a new market March, the Michigan Gaming Con- Bonnie LePage, will operate the spa- for the region’s businesses. trol Board reported. cious anchor venue at DTE Energy Ford shareholders mied Michigan farmers and food pro- J A Farmington Hills-based devel- Co.’s new downtown Detroit park, the ducers are no stranger to exporting opment company is planning a new Detroit-based utility announced. to China, though. Agriculture is the mixed-use project in Midtown that J TPG Capital, a San Francis- by rst virtual meeting state’s second largest export indus- would bring the neighborhood co-based private equity investment ord Motor Co.’s shareholders on ting pressure on management. try to China behind automotive. Ex- north of downtown a new 120-room rm, has made a majority invest- ursday questioned the compa- “We’re as frustrated as you are by ports include soybeans, feed grain, hotel and at least 65 new ment in LLamasoft Inc., the supply Fny’s top executives about their strate- the stock price,” said Bill Ford, noting dairy and vegetables. apartments. chain software supplier announced. gy for the future — and complained that the company would continue to Michigan exported $3.2 billion in J StockX, part of billionaire busi- J Months after its longtime Renais- about a new virtual meeting format. work on improving its core business products to China in 2016, making it nessman Dan Gilbert’s portfolio, an- sance Center destination restau- CEO Mark Fields, who faced scru- while experimenting with the new the state’s third-largest export part- nounced its plans to enter the sec- rant Coach Insignia shuttered for tiny earlier this week over the com- mobility services. ner behind only Mexico and ondary watch and handbag markets. good, the Epicurean Group pany’s lagging stock price and in- On vehicle quality, Fields admitted Canada. J e 2017 Quick Lane Bowl college planned to open its new Nomad vestments in new mobility services, to troubles with recalls, but claimed the Several Michigan companies al- football game will return to Ford Grill and event space at the reno- emphasized that Ford was moving company was showing improvement. ready use Alibaba’s websites, in- Field in Detroit on Dec. 26, the De- vated Premier Hotel by Best West- “aggressively but also prudently” When one shareholder asked about cluding Kellogg Co. and Whirlpool troit Lions announced. e game ern in South eld. into “the biggest strategic shift in the plans to discontinue any cars, Fields Corp., but Ma hopes the event will will air on ESPN at a kicko time to J The owner of Vicente’s Cuban history of our company.” sidestepped it by saying the company open up the Chinese market to be announced later. Cuisine in downtown Detroit is Executive Chairman Bill Ford said was always looking at its options. small companies. J Dearborn-based Carhartt Inc. is opening a new restaurant on West the company “continues to succeed in Normally held in Wilmington, “For the past 18 years, we’ve al- applauding hard-working women for Forest Avenue in Midtown called the present, even as we build a founda- Del., this was the rst annual meet- ways been focused on small busi- Mother’s Day with its new “All Hail Bolero Latin Cuisine this summer. tion for greater success in the future.” ing held virtually. ness,” Ma said. “And I’m a believer at foundation involves invest- at didn’t sit well with some it’s the main driver in creating jobs. ments in ventures not directly relat- shareholders. John Chevedden, a We can help small businesses glo- ed to the sale of cars and light trucks. longtime activist shareholder, said it balize their market.” Over the past year, Fields has out- was a “horrible retreat into a foxhole lined the company’s plans to devel- for the company,” and mused that BUSINESS NEWS op a fully autonomous car, expand perhaps Ford’s top brass “are hiding its electri ed vehicle portfolio and in Dearborn in the basement.” J Detroit’s QLine streetcar system invest in new mobility services such Ford said the company switched services were scheduled to begin as ride-sharing shuttles. the meeting to “reach more share- Friday, after a decade of planning, But after posting a near-record holders,” and said internal metrics nancing, politics and construction. pretax pro t of $10.4 billion in 2016, showed more participation than in J Garden City Hospital has opened Ford expects a decline to $9 billion previous years. a new elective interventional cardio- pretax pro t this year because of Among shareholder proposals, vot- vascular program after receiving those investments in the future. e ers again rejected an annual request state approval last month to perform company’s stock price has contin- to remove the Ford family’s special coronary angioplasty procedures. QUICKEN LOANS ued to lag, and it was recently passed class of shares. Ford said 64.4 percent J Detroit’s three casinos reported Quicken Loans invested $400,000 to transform the Woodward Avenue medians from in market capitalization value by of voters were against the idea. an aggregate revenue of $121 mil- Larned Street to Campus Martius into a public park. The park opened Friday — the same startup electric-vehicle maker Tesla. Ford shares were trading down 2 lion in April, down 1.1 percent from day the QLine streetcar line oered its rst public rides. And Ford board members are put- cents at $11.02 as of 11:23 am ET. TECHNOLOGY IN MOTION COBO CENTER // SEPTEMBER 6-8, 2017 DETROIT TIMDETROIT.COM BE PART OF THE BIGGEST MOBILITY TRADE SHOW IN NORTH AMERICA AUTONOMOUS & ELECTRIC VEHICLES // CONNECTED CARS SHARED ECONOMY // DIGITAL USER EXPERIENCES
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