Banking on Detroit
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MAY 15 - 21, 2017 Loyola Expansion delivers is the plan as Detroit’s Bigalora buys potential Arbor Brewing Ron Fournier’s New owners aim to triple column. Page 6 brewing capacity. Page 3 Investment Real estate Banking on Detroit Religious groups hope Detroit’s rise helps them By Kirk Pinho “It wouldn’t [email protected] have happened Among other things, the Rev. Jim Holley prays for good weather. without the His church’s tight budget can de- fund. We pend on it. “Don’t let it rain, don't let it snow, wouldn’t have don’t let it be a been able to blizzard,” said Holley, who get the money leads the His- to completely toric Little Rock Baptist Church renovate the on Woodward building.” Avenue in De- troit. “ e few Kirsten Ussery, people that do Jim Holley: Detroit Vegan Soul come won’t Churches losing come.” membership. Holley, who has been at Little Rock for more than 40 years, understands from decades of experience why churches and other religious in- stitutions are looking to their real estate assets to help shore up PHOTOGRAPHS BY LARRY A. PEPLIN their bottom lines amid shrinking Detroit Vegan Soul co-owners Erica Boyd, le , and Kirsten Ussery in front of their second location on Grand River Ave. in North Rosedale Park. They borrowed $100,000 from memberships and high costs of Chase’s Entrepreneurs of Color Fund to help nance the purchase and renovation. maintaining architecturally stun- ning but old buildings. J.P. Morgan Chase’s latest $50M investment in Detroit is good news for Simply put, fewer people in the pews means fewer donations. “ e dynamics of the church is small businesses in the city, but it’s also a growth opportunity for the bank changing to the point where we are By Chad Livengood patched a team of his bank’s execu- June at Chase banks in Detroit were losing membership and therefore we [email protected] tives to deliver another $50 million up 36.7 percent since June 30, 2013 are losing nancial resources, so you What started as J.P. Morgan Chase pledge toward underwriting De- — just 18 days before the city sought have to do something to try to have & Co. CEO Jamie Dimon’s desire to troit’s nascent revival. protection from its creditors in U.S. income coming outside tides and of- help Detroit as the city was going But the money is not all charity — Bankruptcy Court. ferings,” he said. through a historic municipal bank- half of it has to be repaid through e J.P. Morgan Chase Institute, a e QLine street car, which ruptcy three years ago has morphed long-term loans. at’s because the company think tank, found that 58 opened to the public on Friday, is into a business opportunity for the bankers at this Wall Street institution percent of Chase consumer spend- driving development interest along nation’s largest bank. see opportunity brewing in the Mo- ing in Detroit last year occurred at its 3.3-mile xed route on Wood- Dimon came to town in 2014 to tor City — starting with their own small businesses. None of the other ward Avenue. On and around the lavish the bankrupt city with a $100 ledger. 14 U.S. cities studied had credit and Woodward corridor, eye-popping million pledge in loans and grants With 19 branches in Detroit, debit card spending at small busi- projects have been oated, includ- for small business capital, economic Chase bank controlled 64.6 percent to the most recent data from the nesses exceed 50 percent of all ing what would be the city’s tallest development initiatives and real es- of the retail banking market share Federal Deposit Insurance Corpo- spending, according to the study. building at 734 feet at the former J.L. tate projects. in the city with $20.2 billion in de- ration. Hudson’s department store site. Last Wednesday, Dimon dis- posits as of June 30, 2016, according FDIC data shows deposits last SEE CHASE , PAGE 16 SEE CHURCHES , PAGE 17 © Entire contents copyright 2017 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 33 No 20 $2 a copy. $59 a year. Special health care report: Life a er P zer << Michigan’s pharmaceutical industry has rebounded a er the giant’s shutdown. Page 8 NEWSPAPER Executives say state bioscience industry needs capital, tax credits to grow. Page 9 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- Ocers 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.