What's in Store for Retail?

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APRIL 24 - 30, 2017

Alibaba takes Dissident aim at Michigan shareholders Chinese giant’s CEO look to shake Jack Ma said up Rockwell to attend promo event. Want company to move Page 3 faster on drug. Page 4

Retail Real Estate The Macy’s store at Eastland Center in Harper Woods A er false What’s closed in March, as part of a plan announced in starts, an in store August to close 100 stores across the country in a move opportunity for retail? to cut costs and Closings, job losses free up capital for for McLouth investment in aren’t the whole story growth areas. By Kirk Pinho as business evolves [email protected] Dozens of trees, with their white By Dustin Walsh blossoms greeting spring, line West [email protected] LARRY PEPLIN Je erson Avenue’s median in Tren- e future of retail isn’t as simple ton, a startling contrast to what im- as “the internet is taking over.” mediately lies to the east. e supposed bricks-and-mortar A mammoth 180 acre-plus indus- retail apocalypse is overstated. But trial property, housing a 1 million- the face of the industry and its jobs is square-foot building with shattered changing drastically, in ways that are windows, has confounded local, likely to bene t city centers like De- county, state and even federal o - troit at the expense of rural and sub- cials for more than a decade. urban shopping centers, reversing a It may nally be on its way to be- decades-long trend. ing transformed. e question is: Nationally, the retail sector lost Into what? 30,000 jobs in March, a decline that’s It wasn’t all that long ago that its expected to be exacerbated by the waterfront location along the Detroit winddown of several major depart- River prompted a developer to con- ment stores like Macy’s and Sears, jure up plans for a sprawling mixed- which are expected use development with more than Keith Crain: to close 218 locations 2,000 residences and hundreds of Will brick and this year. is led to thousands of square feet of commer- mortar go headlines last week cial space, but local real estate ex- away? Page 8 like “ e Silent Crisis perts generally believe it’s best suit- of Retail” and “ e ed for industrial use. retail apocalypse is creating a Whatever developer ends up with ‘slow-rolling crisis’ that is rippling the site best through the U.S. economy.” known as the “ e people that work in retail former McLouth stores will lose their jobs, then spend Steel Products less money in retail stores because Corp. property they are no longer employed,” Mark — now that Cohen, the director of retail studies at Wayne County Columbia Business School, told Busi- has foreclosed ness Insider last week. “ at creates a on it for $3.7 mil- cascade of economic challenges.” lion in unpaid Local experts, however, say the re- property taxes — Jim Roberts: The tail jobs picture is more complicated, will have to grap- site is “a toughy.” calling the job losses a correction or ple with envi- blip in the overall market as retailers ronmental issues stemming from shift from rural and suburban centers decades of use as a steel manufac- to the city. turing plant. Alarmists point to the rise of “You’re asking a $1 billion ques- e-commerce, which has risen rough- tion, and I think everybody is ly 40 percent year-over-year, but still scratching their heads,” said Jim only accounts for 9 percent of total ANNALISE FRANK/CRAIN’S DETROIT BUSINESS Roberts, a senior vice president of in- SEE RETAIL , PAGE 18 The 1,700-square-foot Bonobos location on Woodward Avenue in downtown Detroit opened in February. The store carries a dustrial brokerage for the South eld slim inventory for customers to see and try on, then have purchases shipped to them. SEE MCLOUTH , PAGE 19

Wells Fargo case raises question: How do companies design culture and incentives that don’t encourage unethical behavior?

NEWSPAPER Page 10 2 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017

INSIDE MICHIGAN BRIEFS BANKRUPTCIES 20 CALENDAR 14 Business leaders urge ply contaminated with lead, e CLASSIFIED ADS 17 ending public pensions Associated Press reported. Karen Weaver's announcement DEALS & DETAILS 14 Michigan should get out of the Tuesday is a reversal. KEITH CRAIN 8 business of o ering government Last year, Weaver said the city of MARY KRAMER 9 workers pension and health care 100,000 residents would stick with benets in retirement, under new a plan to draw from a pipeline to OPINION 8 recommendations from the state's Lake Huron that is under construc- RON FOURNIER 8 top business executives. tion. But she re-evaluated that de- RUMBLINGS 23 Instead, the state should move cision as a condition of receiving all newly hired public school teach- $100 million in federal funding to WEEK ON THE WEB 23 ers and municipal employees into address the manmade disaster. COMPANY INDEX: dened-contribution, 401(k)-style, Weaver said switching the water SEE PAGE 22 retirement plans, stop o ering source again is too risky and staying health insurance to new hires and with Detroit's water supply from give retirees incentives to buy cov- Lake Huron is less expensive. workforce continued to grow, the erage from private insurers, ac- Flint returned to that source in state said Wednesday, according to cording to a report released Mon- October 2015 after it was discov- e Associated Press. day by Business Leaders for ered that Flint River water was not e Michigan Department of Michigan, the state's business treated to reduce lead pipe corro- Technology, Management & Bud- roundtable. sion for 18 months. get said the rate fell from 5.3 per- Business Leaders for Michigan, Flint’s mayor recommended Tuesday that the city continue getting its drinking Under a 30-year contract agree- cent in February compared with a led by President and CEO Doug water from a Detroit-area system for the long term. ment with the Great Lakes Water national March rate of 4.5 percent. Rothwell, issued the report the Authority, Flint will get a $7 mil- Last month's jobless rate in Michi- same day it held a summit on state group wrote, a position motivated if schools, municipalities and the lion annual credit from the GLWA gan was two-tenths of a percentage and local scal stability in Lansing. by the possibility that the U.S. and state are to be able to withstand to pay toward its portion of bonds point higher than the state's year- Lansing-based Public Sector Con- Michigan economies could dip economic trouble. for the Karegnondi Water Authori- ago rate of 4.9 percent. sultants conducted the research back into recession within a few ty's $300 million pipeline from e agency said the state's work- and analysis for BLM. years after a lengthy, if slow, recov- Flint mayor wants to keep Lake Huron. force rose by 6,000 with an increase e organization believes any ery. city on Detroit water in total employment of 17,000 jobs. benets restructuring should be Central to that is promoting poli- State jobless rate up e number of unemployed work- done in a way that preserves cover- cies to improve Michigan's long- Flint's mayor recommended from a year ago ers fell by 11,000. age promised and o ered to exist- term economic growth, the report Tuesday that the city continue get- “While these latest numbers are ing retirees. suggests. Addressing employee leg- ting its drinking water from a De- Michigan's unemployment rate certainly promising, we must not "It's time to make Michigan gov- acy costs, both for pensions and re- troit-area system for the long term, fell to 5.1 percent in March while become complacent," Gov. Rick ernments recession-proof," the tiree health care benets, is critical following a crisis that left the sup- the number of people entering the Snyder said in a statement.

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Retail Commerce Jewelry store renovation nds gems Simmons and Clark Jewelers refreshes store, bridal business

By Chad Livengood BLOOMBERG [email protected] Jack Ma, Alibaba’s founder and one of When a contractor began reno- China’s wealthiest people, is expected vations last fall at Simmons and to attend an event in Michigan this Clark Jewelers, third-generation summer. owner Michael Simmons was told the downtown Detroit jewelry store’s original display cases Alibaba to couldn’t be spared. e large glass display cases lining both walls of the store at 1535 take aim Broadway St. had been plastered over twice during previous renovations — once in the 1950s and at Michigan again in the late 1970s when a drop ceiling was installed. “As they started demoing it ... with 1st event they found the original showcases By Dustin Walsh were like pristine, untouched,” [email protected] Simmons said. “We knew what was China’s largest e-commerce com- there, but every designer told me, pany, Alibaba Group Holding Ltd., ‘Oh, I’m sure they glued, nailed, will host an event in Detroit this painted over it. It will look horri- summer to lure Michigan agricul- ble.” ture rms to export to China, accord- Instead, they looked perfect to ing to a source with knowledge of the Simmons, who plans to ll them matter who requested anonymity. once again with jewelry and assort- e procurement event, the rst ed wares for a budding bridal busi- in the state for Alibaba, will be held ness that he credits to an inux of at Cobo Center in late June, the con- new downtown residents. ference center con rmed, though Simmons and Clark, a downtown CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS speci c dates are not con rmed. Detroit mainstay since 1925 with an Michael Simmons, third-generation owner of Simmons and Clark Jewelers, stands by large glass display cases lining both walls Michigan’s small- and medi- SEE JEWELER, PAGE 20 that were uncovered during a recent renovation of the downtown Detroit jewlery store. um-sized food producers will hear pitches from Alibaba on how its e-commerce platforms could open Health care up the Chinese market for Michi- gan, the source said. Jack Ma, Aliba- ba’s founder and one of China’s Committees move forward with integrating wealthiest people, is expected to attend. behavioral, physical health systems Michigan exported $3.2 billion in By Jay Greene mendations of a multi-stakeholder ing MDHHS for a plan to create a products to China in 2016, making it [email protected] mental health committee known as statewide public behavioral health the state’s third-largest export part- Michigan lawmakers made it clear the Section 298 Workgroup to retain managed care organization. e ner behind only Mexico and Cana- last week that they are aiming to go and improve the current public Med- statewide organization would man- da. Automotive parts leads the list of against recommendations from a icaid mental health system, the ap- age services to nearly 350,000 people exports to China, followed by agri- “Just statewide mental health panel and propriations subcommittees rewrote served by the current system. “We cultural products like soybeans, feed give HMOs at least a piece of Michi- budget language that could lead to Under the plan, MDHHS would be grain, dairy and vegetables. because gan’s $2.6 billion Medicaid mental more Medicaid health plan involve- instructed to come back by next need a Founded in Hangzhou, China in you make health budget. ment in the current public system March 15 with an implementation pilot to 1999, Ma has built Alibaba into one it one ere’s a long way to go in the bud- and consolidation of 10 regional timetable and plan. Currently, the see how of China’s largest companies, with a get process and details remain to be mental health organizations into one Medicaid behavioral health system is market capitalization of nearly $284 entity ironed out, but it’s an apparent victo- superagency. managed by 10 public regional agen- it works billion — more than Wal-Mart Stores doesn’t ry for the health plans that has further It is unclear how the Michigan cies known as prepaid inpatient with Inc. at $227 billion, but less than raised alarm among supporters of House and Senate will resolve dier- health plans. In 2014, the state con- competitor Amazon Inc. at $433 bil- mean the current public system. ences between their budgets that re- solidated 18 PIHP regions into 10. mind lion. you Both House and Senate budget sulted in four sometimes conicting House Appropriations Subcom- and Alibaba’s 2014 initial public oer- subcommittees approved language reform proposals. Full House and mittee Chairman Edward Can eld, ing raised $25 billion on the New reduce that would carve out test programs Senate appropriations committees R-Sebawaing, told Crain’s that cre- body.” York Stock Exchange and introduced anything.” that could lead to a privatization of are expected to meet this week to - ating a statewide PIHP could im- Jim Marleau, Alibaba to Western investors, though Willie Brooks, management of the system through nalize the Michigan Department of prove clinical services and generate HHS the company remains mostly un- Oakland County managed care plans, which already Health and Human Services budgets. administrative savings. Estimates Subcommittee known to U.S. shoppers despite its Community Mental administer physical health care Med- For example, the House subcom- have ranged as high as $200 million more than 450 million customers in Health Authority icaid bene ts. mittee replaced 2016 budget lan- annually. more than 200 countries. Instead of approving the recom- guage known as Section 298 by ask- SEE HEALTH, PAGE 20 SEE ALIBABA, PAGE 20

Familiar faces MUST READS OF THE WEEK in running at OU Former Kelly Services CEO Trust: The most powerful currency Paying for success Carl Camden, former UM But it’s scarce, writes Ron Fournier, and businesses have the National Kidney Foundation program is Health CEO Ora Hirsch best shot in our society at changing that. Page 8 one of rst in Michigan to use new Pescovitz are nalists for nonprot nancing model. Page 6 president job. Page 16 4 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 Rockwell Medical involved in board proxy ght, lawsuit with major shareholders By Jay Greene in connection with Rockwell's up- 49, a drug company executive with [email protected] coming annual summer shareholder more than 20 years experience. He has Rockwell Medical Inc. of Wixom is meeting. e meeting is scheduled been president of Foamix Pharmaceu- embroiled in a dispute with two large for June 1. e Richmond statement ticals Inc. since 2014. shareholders in the company who questions Rockwell’s recent an- Moreover, in an April 4 statement, are critical of the company’s growth, nouncement to improve corporate Rockwell said it has implemented the governance structure and alleged governance and contends the com- following governance improve- lack of communication with share- pany would not have taken action if ments: appointed Patrick Bagley as holders. not for their criticism. lead independent director; and ey want a seat on the governing “History has shown that the com- formed a governance and nominat- board, which will expand to six this pany has not been interested in making committee. summer. ing proactive change absent a loom- It also is proposing several new e dispute has spilled into court ing proxy contest,” said a statement compensation governance practices with claims and counter-claims be- from Richmond and Ravich. “We are for 2017, including the annual bo- tween Rockwell (NASDAQ: RMTI), a also concerned that the company’s nus program and added manage- biopharmaceutical company target- newly acquired interest in improving ment share ownership guidelines, ing end-stage and chronic kidney dis- its corporate governance practices an anti-pledging and anti-hedging ease, and top executives at Jack- may be abandoned if a public share- policy, a clawback policy, a cap on son-based Richmond Brothers Inc. holder representative is not elected annual bonus payouts and hiring of and Tri-Star Management in Minne- to the board.” an independent compensation con- apolis. Richmond and Ravich have asked sultant. Richmond Brothers and Tri-Star, shareholders to support their nomi- In SEC lings, Richmond and Rav- and their clients, represent 6.1 million nee — Ravich himself — for election ich made suggestions to improve the with custom MAKE THE MOST shares, or 11.9 percent of Rockwell’s to the now ve-member Rockwell board and management, including OF YOUR EDITORIAL Reprints, outstanding common stock. David board. It will expand to six at the June adding a shareholder and expanding Richmond is chairman of Richmond 1 annual shareholders meeting. clinical trials, but all have been re- COVERAGE IN CRAIN’S E-prints Brothers and Mark Ravich is co-found- “We are seeking representation on jected, they said. [email protected] • (212) 210- 0750 and more! er and president of Tri-Star. the board because we believe that the For example, Richmond and Rav- e outspoken shareholders have board will bene t from the addition of ich have complained that Rockwell been asking Rockwell for several a direct shareholder representative failed to communicate its Triferic months to improve sales of Triferic committed to good corporate gover- pricing strategy to shareholders. and Calcitriol, restructure governance practices and an objective of “It has now been over two years nance and add a shareholder repre- enhancing value for the bene t of all since the approval of Triferic (Septem- sentative to the now ve-member Rockwell shareholders,” the statement ber 2015) and more than three years board. said. since the approval of Calcitriol, the In 2015, Rockwell won FDA approv- Richmond said in the statement company’s vitamin D drug, and Rock- A Fee-Only Wealth Management Group al for Triferic, a promising iron re- that Rockwell has had two years to well has failed to generate revenue placement therapy that is getting good improve sales of Triferic and Calcitri- from either," said Richmond in a reviews by clinicians in an ongoing ol and that the company continues to March 2 statement. "We believe this drug sample program, but sales have ounder nancially. clearly calls into question manage- been sluggish for a number of reasons. For scal 2016 that ended Dec. 31, ment’s strategy and competency to Michigan’s #1 Financial Advisor* Calcitriol is a generic drug for patients Rockwell generated sales of $53.3 successfully build shareholder value.” undergoing chronic kidney dialysis. million, down from $55.4 million in On Friday, Rockwell’s shares were Once the FDA approves Calcitriol for 2015. Net loss for 2016 was $19.8 mil- trading at $8.01, down from about manufacturing by Rockwell, expected lion, or 39 cents per share, compared $11 right after the FDA approved this year, the with a loss of $14.4 million, 29 cents Triferic in January 2015 and lower Charles C. Zhang company intends per share, in 2015. than the company's ve-year high of ® to market the ac- Two sources, who asked to remain $16 in 2011. CFP , MBA, MSFS, ChFC, CLU tive vitamin anonymous, told Crain’s that it is not At the time Rockwell secured FDA Managing Partner D-based inject- unusual for some people who invest in approval for Triferic, Chioini told able drug for he- startup biopharmaceutical compa- Crain's Triferic was expected to boost Charles has been ranked in the top modialysis panies to get impatient with the time it Rockwell annual sales by at least 10 on Barron’s list of Top 100 tients. takes to monetize intellectual property $200 million and as high as $600 mil- Independent Financial Advisors for Rockwell like prescription drugs. e pipeline lion over the next ve years. 2015 and 2016, and is currently President, CEO from idea to clinical studies to federal “ is is a pretty big deal for a lot of the highest ranking fee-only NAPFA-Registered Financial Rob Chioini: and Chairman approval and then sales can some- reasons — for our company and for Advisor on the list.** Rockwell Rob Chioini told times take 12 years or more, they said. the 400,000 patients in the U.S. that president, CEO, Crain's he has Since 1995, when Rockwell was can use this drug,” Chioini said in a chairman reached out to founded by Chioini, the company has March 2015 interview. “It is a busi- the disgruntled evolved from a medical device clinic ness-changing kind of event.” We Uphold a Fiduciary Standard shareholders to explain the compa- selling dialysis kits and related items to But later that year, in November, ny’s long-term strategy is to grow rev- a fully integrated drug company. It Rockwell announced it would seek 101 West Big Beaver Road enue by rst securing the highest now has 300 employees with plants in transitional add-on payments for Medicare reimbursement possible, Michigan, Texas and South Carolina. Triferic from Medicare instead of 14th Floor signing lucrative contracts with na- “Unfortunately, management and bundled pricing, which is what Troy, MI 48084 tional dialysis companies for Triferic the board have failed to heed these Medicare o ered Rockwell. Transi- and expanding sales internationally signals of shareholder discontent tional payments are higher prices (248) 687-1258 or (888) 777-0126 through partnerships. and have persisted in running Rock- Medicare pays for new drugs for two “We address their concerns when well as if it were a private company years to encourage use by providers. they come up. We communicated not accountable to the interests of Chioini said seeking transitional with him (Richmond) perfectly,” Chi- public shareholders,” according to a payments for Triferic was the right www.zhangnancial.com oini said. “We have met with and March 2 statement by Richmond. decision, even if it means sacri cing tried to work with David (Richmond) Chioini told Crain’s that manage- short-term revenue gains. He said he Assets under custody of LPL Financial and TD Ameritrade. and for whatever reason, we are ment takes seriously shareholders’ expects Medicare will approve tran- where we are today.” concerns. He said Rockwell is in the sitional payments this year. *As reported in Barron’s March 4, 2017. Rankings based on assets under management, O cials for Richmond and Ravich process of improving the board and “Transitional is a better payment revenue generated for the advisors’ rms, quality of practices and other factors. declined to talk on the record with has proposed a number of other im- than the bundle. We are actively **As reported in Barron’s August 22, 2015 and August 27, 2016. Based on assets Crain's about Rockwell. Instead, they provements. marketing the drug,” said Chioini, under management, quality of practices, revenue that advisors generate for their pointed to various press statements ﬁrms, and other factors. For fee-only status see NAPFA.org. Last June, Robin Smith, former adding that Rockwell has been pro- and SEC lings. CEO of NeoStem, was appointed to viding Triferic as free samples to di- Minimum Investment Requirement: $500,000 in Michigan/$1,000,000 outside of Michigan. On April 5, Richmond and Ravich the board. is year, Chioini is recom- alysis centers and is getting positive led a proxy statement with the SEC mending election of David Domzalski, SEE ROCKWELL ,PAGE 5 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 5

ROCKWELL FROM PAGE 4 feedback about how the drug is helping patients. “We are also very pleased with the response, and the positive clinical ndings being reported from dialysis providers using Triferic through our IP Experience drug sample program. Our marketing and education eorts on Triferic ® have been well-received and contin- In Your Corner. ue to be very eective,” Chioini said. But over the past 12 months, as Extensive experience in intellectual property, Richmond and Ravich began to criti- cize Rockwell’s pricing strategy and is- contract, corporate and general business law. suing press releases and statements Works with clients in strategically analyzing, criticizing Rockwell’s management and governance, Rockwell this year evaluating, protecting, and enforcing their led a lawsuit against Richmond intellectual property. Brothers alleging certain violations of the Securities Exchange Act of 1934. Rockwell alleged that Richmond and Ravich, along with four other shareholders, failed to le a 13D document on time with the SEC that in- formed the company that certain shareholders were working together in concert and had eectively become “activist” in nature. Richmond and Ravich said they led the so-called 13D document earlier this year as soon as they were legally required. “We believe Rockwell’s allegations are baseless and untrue. We intend to vigorously defend our- selves against these accusations, and we believe that the facts are on our side. In our view, this lawsuit is nothing more than a desperate attempt to derail our nominations and main- Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Contact Tim Kroninger at [email protected] tain the status quo.” Chioini said Rockwell led the lawsuit because Richmond and Ravich failed to inform the SEC in a timely fashion that they had become activist investors. A hearing is set for May 3 in the U.S. District Court in Detroit. “ey (Richmond and Ravich) made it sound like management is bullying them,” said Chioini. “I have reached out to them. We are hoping to get this resolved before our board meeting. We are wasting a lot of time and expense.” In a 2015 interview with Crain’s, Chioini said Rockwell planted to nego- tiate contracts with leading national dialysis companies, including DaVita Kidney Care and U.S. Renal Care. “e strategy hasn’t changed. We will still sell and market with (dialysis companies),” he said. “What has changed is that we are waiting for (Medicare) to grant us transitional payments for Triferic.” Chioini said he has been to Wash- ington, D.C., at least 30 times to talk with ocials with the Centers for Medicare and Medicaid Services. "We think we are close and will get it this year," he said. But in the meantime, Richmond said in statements that Triferic sales have been much lower than shareholders expected. Last month, Rockwell released - nancial results for the fourth quarter of 2016 that were $13.4 million in sales, or $700,000 lower than the same period in 2015. Net loss was $5.1 million or 10 cents per share compared to a $5.8 million loss, or 12 cents per share in the same period in 2015. Jay Greene: (313) 446-0325 Twitter: @jaybgreene 6 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 Michigan tests ‘pay- for-success’ model for diabetes prevention By Sherri Welch mined benchmarks for performance. e rst program nanced through investing practice at law rm Jae Raitt Wayne, Macomb, Genesee, Kent and [email protected] Hence “pay for success.” the model launched in the U.S. in and a member of the advisory com- Muskegon counties. A new type of nancing is linking e goal is lower-cost, preventive 2012, two years after its emergence in mittee on impact e National Kidney Foundation is private investors who want to do good interventions that can save money for the United Kingdom. investing for the seeking $1.5 million to expand the — and make some money in the pro- the payer in the long term. Since then, more than a dozen proj- Case Foundation. program, Franke said, with a goal of cess — with nonpro ts looking to get e Ann Arbor-based National Kid- ects have launched around the coun- Impact invest- adding 1,000 new people annually upfront funding for programs where ney Foundation is one of three social try addressing issues ranging from ing has become a during the three-year program. they’re paid for results. services agencies chosen nationally by homelessness to recidivism to early hot topic, she LISC is assisting the foundation in e model is set to get another early New York-based Local Initiatives Sup- childhood education. Another 50 are said. setting up an agreement with inves- test drive in Michigan, expanding a port Corp. to receive technical assis- in development, according to Payfor- “People want a tors, a third-party validator that mea- proven diabetes prevention program tance to help it launch the model. success.org, a site that provides educa- return on their sures the success of the program based oered by the National Kidney Foun- Its pay-for-success program will fol- tion and information on pay for suc- money and want against the outcomes promised and dation of Michigan in six Metro Detroit low another launched in Michigan last cess and is managed by the New Jennifer Oertel: to create social the back-end payers that would bene- and West Michigan counties. August to improve outcomes for at-risk York-based Nonpro t Finance Fund. Impact investing a good, so banks t from the cost savings. For nonpro ts, the model promises mothers and babies and about a dozen Traditionally, contracts or grants to hot topic. and nancial ad- Private investment in the program a new funding stream outside of tradi- other projects around the country. support social service programs focus visers are looking is likely to include a mix of grants, re- tional grant-making and philanthropy ere’s a plethora of evidence that on short-term results such as the for products to do this.” coverable grants, junior debt and se- — if they can deliver. shows the diabetes prevention pro- number of people coming through or ough the model is risky for inves- nior debt funding provided through rough the pay-for-success mod- gram works in terms of spurring peo- graduating from a training program. tors, “We anticipate this is going to just banks, community development - el, known as “pay for success,” private ple to lose weight and to increase their Social impact bond models seek increase with the wealth shift to mil- nancial institutions, businesses and/ investors front the costs to scale a pro- physical activity, said Charlene Cole, longer-term outcomes such as the lennials,” Oertel said. or foundations, said Anna Smukowski, gram that’s shown some degree of suc- director of program operations. ability of a job training graduate to get Michigan was one of eight states LISC’s pay-for-success program man- cess in tackling a persistent social is- By nancing expansion of the pro- a job and the amount of money he is chosen in a national competition in ager, in an email. sue. at investment is often called a gram through a social impact bond, able to make as a result of the program. 2013 to receive technical assistance Investors are interested in the mod- “social impact bond.” everybody wins, she said. Investors include commercial from the Social Impact Bond Techni- el, she said, because it provides a fo- Back-end payers such as the gov- “It will save health insurers money; banks, community development - cal Assistance Lab at Harvard Kenne- rum for impacting investing which ernment or health insurance compa- the Kidney Foundation will be happy nancial institutions, foundations, and dy School to explore tackling per- produces social and/or environmen- nies pay for the services on the back because it’s serving more people, and theoretically, individuals, said Jennifer sistent social problems with pay tal returns, as well as a nancial return. end, returning money to investors — investors will get some small return on Oertel, who is group leader of tax-ex- for-success contracts funded by social It aligns with the mission-orienta- but only if the charity meets predeter- their investment.” empt organizations and the impact impact bonds. e Rockefeller Foun- tion of foundations seeking to improve dation and the Laura and John Arnold the quality of life for people, commu- Foundation supported the technical nity development nancial institu- assistance. tions and philanthropic arms of banks, After nearly three years of develop- and through measurement of pro- ment, the state’s rst pay-for-success gram eectiveness, it ensures invest- program launched last August to ex- ments measurably improve the lives of pand Spectrum Health’s Strong Begin- the people served, she said. nings program through a pilot that will Medicaid health plans like Meridi- serve an estimated 1,700 families in an Health, Molina Healthcare, Health Kent County, with the goal of reducing Alliance Plan and others that stand to preterm birth and rapid repeat preg- gain cost savings from people not pro- nancy. gressing to diabetes are expected to e program focuses on improving pay on the back end, Franke said. health and early childhood develop- “We’re wanting to talk to any health ment outcomes for high-risk mothers plans that oer Medicaid. ... We’d like and their babies through home-visita- to demonstrate that the program has tion, community programs and better proven success with that population.” coordination of care throughout preg- As interest in pay-for-success initia- nancy until the child’s second birth- tives and social impact bond programs day. Eight community agencies, in- have spread in recent years at the lo- cluding the state population-based cal, state, and federal levels, results Maternal Infant Health program, are have been mixed, according to the Na- collaborating on the program, which tional Council of Nonpro ts. aims to improve maternal and child e new funding mechanisms are health among African-Americans and not the cure-all remedy for every so- Latinas and eliminate racial dispari- cial problem or public funding short- Deliberately unique. ties in birth outcomes. fall as promoted by some, and they’re e National Kidney Foundation is not the guaranteed disaster others call now trying the model out, with LISC’s them, the council said. help, to expand a diabetes prevention Pay-for-success models can be con- program it has oered since 2012. sidered in instances where data can be About 1,700 people at risk for devel- measured accurately, said David oping diabetes have enrolled in the ompson, vice president of public diabetes prevention program since its policy for the National Council of Non- launch, said Arthur Franke, senior vice pro ts, in an email. e initial target 1RWDOOFOLHQWVDUHWKHVDPHDQGVKRXOGEHWUHDWHGDFFRUGLQJO\,WWDNHVDƓUPWKDW president, chief science ocer at the populations – prison recidivism rates, National Kidney Foundation. early childhood development are ide- fully understands those differences to be effective in serving your intellectual Nearly half of those in the program al because they have large populations property and business needs. We spend time getting to know our clients, lost more than 5 percent of their body and existing sets of data. working so closely with you that we become an extension of your team. And weight, and participants increased But the challenge is that not all because our practitioners have vast industry and legal experience, we know that their level of physical activity to an av- things can be measured, he said. our unique ideas will protect yours. erage of 221 minutes per week. Both “e biggest concern about pay- are proven to reduce progression to for-success programs is that worthy Type II Diabetes. interventions and innovative ap- But the people at greatest risk, proaches are ignored when an outsid- low-income people not covered by er party cannot identify in advance Medicare or private insurance, don’t which metrics will show success,” have access to this program, because ompson said. Medicaid insurers don’t cover it, Fran- “e result can be that the easily Michigan | California | Washington, D.C. ke said. measured items get funding and the www.BrooksKushman.com rough the pay-for-success mod- best solutions are left out of consid- el, the National Kidney Foundation eration.” plans to expand the program to at-risk, Sherri Welch: 313 (446-1694) low-income populations in Oakland, Twitter: @Sherri Welch CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 7

A rendering shows the Saint Developer to renovate Charles Residences, a luxury condo St. Charles School building that Banyan Investments LLC for luxury condos plans to open By Annalise Frank tact. “It’s easy for people to come next year in the [email protected] in and replace because it’s easier, renovated St. Developer Banyan Investments it’s quicker, it’s cheaper,” he said. Charles School LLC plans to transform a historic “To refresh and renew and repur- at 1454 school building into 25 luxury con- pose is not as easy and is not for Townsend St. in dos — an addition to the growing the faint of heart, but I think the Detroit’s West body of upscale residential spaces result is significantly more uplift- Village neighbor- in Detroit’s West Village neighbor- ing.” hood. hood. Annalise Frank: (313) 446-0416 Detroit-based Banyan aims to Twitter: @annalise_frank preserve as much as it can of the PHOTO BY BANYAN INVESTMENTS LLC century-old St. Charles School when it remodels the building over the next year to build about 25 units, Banyan CEO Aamir Fa- rooqi said. The Detroit Regional Chamber Mackinac Policy Conference, MAY 30 – JUNE 2, 2017 Detroit Mayor Mike Duggan and Banyon plan to break ground on the Saint Charles Residences site at 1454 Townsend St. on May 1. Farooqi did not release exact figures on the investment. The condos will be priced from about $275,000 to $470,000 when build-out is complete in around 12 months, Farooqi said. Sizes will range from less than 1,000 square feet to about 1,600 square feet, with high ceilings, large windows, luxury master suites and an open concept design. Amenities will include outdoor space and secure parking. Banyan plans to construct an additional floor on top of the three-story school, which he said has likely been vacant for more than two decades. A nearly 1,700-square-foot penthouse con- No one covers the Detroit Regional FEATURED IN THIS ISSUE: do and several smaller units will Chamber Mackinac Policy Conference • Michigan Change Makers: The power players and be built on the new floor. like Crain’s Detroit Business. This The project’s architects are Roy- business leaders in the state al Oak-based FX Architecture LLC annual power feature is distributed at and New York-based Gensler. The Mackinac, May 30 – June 2. Reach an • What’s Your Superpower? real estate broker is Detroit-based Feature on local business and audience of over 26,000 of the area’s The Loft Warehouse Corp. leadership heroes Invest Detroit and the Michigan most inuential business, civic and Strategic Fund are investors, ac- government leaders at the conference • Lists: Private 200 and Graduate cording to a media advisory. and in the regular print distribution of Degree Programs The site in the Villages of De- A comprehensive list of the biggest troit is getting a brownfield tax Crain’s on June 5. and best in each category credit from the city, as well as an abatement under the Neighbor- hood Enterprise Zone program, according to the advisory. The city said it will release details on its contributions the week of the groundbreaking. Banyan started out restoring single-family homes and renting them out in the Indian Village, En- glish Village and Boston-Edison areas of Detroit. About three years ago, he started moving into mixed- use buildings. “So St. Charles represents a continuation of our upward trend in taking on larger and larger and more impactful projects in this part of the city,” Farooqi said. “We’re confident this will be ex- Crain’s Annual Mackinac Edition | ISSUE DATE: June 5 | EARLY CLOSE: May 8 actly the right thing to (be) the catalyst.” For advertising opportunities, contact Lisa Rudy at [email protected] or (313) 446.6032. The catalyst, that is, for development in the neighborhood and a move toward a greener, more walkable city — with its history in- 8 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017

OPINION Trust: The most powerful, and scarce, currency usiness is a cause of, and a a passenger was a public relations cri- possible solution to, an exis- Rates of trust in organizations sis — not just for one company, Edel- tential crisis of trust in Ameri- Business is the most trusted among the people who are uncertain about the system. man said, but for the entire American Bca. business community. Categories of how As part of a trend that began with people feel about “is is the time for businesses to the Vietnam War and Watergate, peo- current system NGOs Business Media Government step up and do job training,” he con- ple have lost faith in U.S. social insti- Believe the system tinued. “Try to give a forward-looking tutions. Government, politics, corpo- is failing 51% 47% 37% 29% policy. If we’re going to have driver- rations, the RON FOURNIER less vehicles or have stores with no Uncertain about media, orga- Publisher and Editor 57% 58% 50% 53% salespeople, who is going to train nized religion, the system Americans for the next generation of organized labor, cent have con dence in big business. Believe the system jobs?” banks, business- Less than half the population exis working 52% 58% 47% 62% e answer, he said, should be big es, schools, char- presses ‘a great deal’ of con dence in business. Corporate America should ities and other the public-school system or orga- NGO = nongovernment organization get in front of the problem before pol- Source: 2017 Edelman Trust Barometer mainstays of a nized religion.” iticians prescribe half-baked solu- healthy society at same year, Richard Edelman, J 53 percent of people believe busi- “Since the Great Recession, busi- tions. are failing to president and CEO of his namesake ness and industry are moving too fast. nesses kept their head down and said “is is an opportunity for busi- adapt quickly public relations company, ew to Da- J 50 percent believe globalization is nothing because they’re afraid of get- nesses to come up with good public Richard Edelman: enough for a vos, Switzerland, with a 32-slide pre- taking us in the wrong direction. ting whacked by an angry public,” policy and not wait for government to Slightly optimistic population buf- sentation warning the world’s politi- J 60 percent believe they’re losing Edelman told me. “at’s exactly the hit you over the head with all kinds of message. feted by wrench- cal and business elite that, based on their jobs due to a lack of training and wrong thing to do because people are regulations,” he said. ing economic, his rm’s polling, government and foreign competition, and almost as desperate for leadership and solu- Framing and funding public policy technological and demographic corporate leaders were the least-trust- many blame immigrants and auto- tions.” on this level is something we’ve come change. ed people on earth. mation. Smart business people will ll that to expect of Congress, not C-suites. In 2012, I reported on this crisis for e 2012 Edelman Trust Barome- At the same time, among people breach, he said. But Edelman has a question for metro a National Journal cover story called ter depressed Davos. On Wednesday, who are still uncertain about whether “What people want the most is to Detroit’s business leaders: Who do “In Nothing We Trust,” and the nd- Edelman brought the 2017 Trust Ba- the system is failing, businesses are be trained for the future. at’s a big you trust to get this right? ings were chilling: “Seven in 10 rometer to the Detroit Economic Club far more trusted than government or deal. at’s something we can do in Americans believe that the country is the media. In a telephone interview, business,” Edelman said. with a slightly more optimistic mes- Ron Fournier is publisher and editor of on the wrong track; eight in 10 are dis- Edelman called the business commu- Americans also want their compa- sage for Michigan business leaders. Crain’s Detroit Business. Catch him at satis ed with the way the nation is nity “the last retaining wall” holding nies to be good corporate citizens and On one hand, business has played 6:10 a.m. Mondays on the Paul W. being governed. Only 23 percent have back a complete collapse in the pub- to treat their customers fairly, which is a role in stoking the public’s anxiety. Smith show on WJR AM 760. con dence in banks, and just 19 per- Edelman’s polling suggests that: lic’s faith in the future. why United Airlines’ mistreatment of

LETTERS ble without Bank of America’s $3 bil- billion in loans to commercial busi- Will brick and Bank of America has lion annual investment in client-fac- ness. Our consumer bank also commitment to region ing software development. meets the ever-changing needs of Editor: With respect to the community, our customers through advanced mortar go away? In her March 12, 2017, article Bank of America annually contrib- mobile banking services, and our - (“Michigan National innovator utes in excess of $3 million to non- nancial centers serve over 1.7 mil- It wasn’t that many years ago Stoddard’s saga oers some lessons pro t organizations delivering crit- lion households in Michigan. when Wal-Mart changed the face of for today”), Mary Kramer made sev- ical services and programs to With antecedents to 1896, Bank of America. eral statements about the commit- Michigan’s residents and our econ- America is grounded in Michigan What had been a small, Arkan- ments Michigan’s banks, like our- omy. Our approximately 1,700 communities and sensitive to their sas-based retail chain of “big box” selves, have made to the community Bank of America employees needs. We understand that the long- stores went national in the 1970s, and the customer experience. Many throughout Michigan gave more term success of our business is di- putting a lot of small retailers out of of these statements deserve some than 25,000 volunteer hours last rectly tied to how we treat our em- business with a combination of updating, as they certainly don’t re- year to help alleviate issues sur- ployees, the responsible and merchandise under one roof. ect the depth and breadth of Bank rounding concerns of hunger, innovative products we oer our KEITH CRAIN at was one revolution. We may Editor-in-chief of America’s commitment to the re- housing and jobs. customers, as well as the invest- be poised for a another. An Amazon gion and the state of Michigan. In support of metro Detroit’s revi- ments we make in our local commu- revolution. in business. ey'll have to gure As one of Michigan’s prominent talization, Bank of America has nities. We’re proud and committed Shoppers are diminishing dra- out how to entice shoppers to leave nancial institutions, Bank of Amer- joined with private, public and phil- to doing our part to improve the - matically in many bricks-and-mor- their computers and head for the ica is engaged and committed to our anthropic partners to develop nancial lives of Michiganders and tar stores. Many folks are shopping stores. Great customer service is a community through consumer far-reaching programs for our moving the Michigan economy for- online. start. product innovation, local philan- neighbors and neighborhoods. ward. No one is quite sure they know But real estate owners must be thropy and volunteerism, workforce ese eorts focus on core issues Matt Elliott what to do about it. becoming a bit nervous when they development and job training and like workforce development and ed- Michigan market president, Sears, J.C. Penney, Macy’s — all notice that the trac at so many business lending. ucation; community development Bank of America have been closing stores. malls is o signi cantly. One anchor Let’s start with product innova- and housing, including a 0 percent Business Banking Midwest Region Like many other habits, “going that closes leaves a big hole. tion. Bank of America is the national interest Home Loan Program for executive shopping” or “going to the mall” But some retail is showing signs leader in mobile banking, the fast- Detroit homeowners to help with might just be a thing of the past, of life. Shops are opening in down- est-growing element of the consum- health and safety issues and allevi- though some discount stores seem town Detroit and other downtowns er banking segment. In fact, Bank of ate neighborhood blight; and urgent Send your letters: Crain’s Detroit to be doing OK. — something we haven’t seen in America’s mobile banking app is needs like hunger or emergency Business will consider for publication Meanwhile, some retailers are half a century. consistently voted among the best. shelter. all signed letters to the editor that do trying to convince potential custom- Retailing is changing, and there We’ve also extended that innovation With respect to support for Mich- not defame individuals or ers that they can order online, then will be some winners and losers — to our MyMerrill experience for in- igan’s economy, last year in Michi- organizations. Letters may be edited pick up the merchandise at the it’s just too soon to tell which is vestors and CashPro experience for gan, Bank of America extended for length and clarity. store. which. Even the smartest folks in re- commercial banking clients. None more than $440 million in new cred- Email: [email protected] Retailers need foot trac to stay tailing haven’t gured it out yet. of these innovations would be possi- it to small business owners and $3.4 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 9 Keeping news media strong a win for everyone Hardly a day goes by without the smaller gathering than in some for Steven Glowacki, but 25 compa- Dustin’s work. news media itself being part of a years. nies approached the Autism Alli- at’s called impact, the kind national story, whether it’s jousting Crain’s Detroit Business was well ance of Michigan to learn more that changes lives. with Trump’s beleaguered press represented in the awards — Kirk about employing people with au- is is an important time in the secretary (or the president’s tweets) Pinho, Lindsay VanHulle, Tom tism. A second story, on a pilot pro- news media business. Without ade- or Bill O’Reilly getting red at Fox Henderson and Dustin Walsh re- gram at Ford Motor Co. for employ- quate revenue, newsrooms can News. ceived awards for their work. (Chad ees with autism, drew another 25 shrink. And we all lose. But the real story in media just Livengood also was honored for re- companies. might be more local: the waning porting at his prior employer.) “We’re juggling these 50 com- MARY KRAMER strength of news gathering opera- We’re proud of those awards. panies and overwhelmed by the Group Publisher Mary Kramer is group publisher of tions in Michigan. Of course, One of them was a great remind- significant interest of companies Crain’s Detroit Business. Catch her Crain’s Detroit Business remains ing eorts strong. er of why local journalism matters. who now want to hire individuals take on business news at 6:10 a.m. the best source of local and region- Last week, the Detroit chapter of In May 2016, Walsh wrote about a with autism,” Autism Alliance CEO Mondays on the Paul W. Smith show al business news in Southeast the Society of Professional Journal- man with autism who had three Colleen Allen told me last week. on WJR AM 760 and in her blog at Michigan. ists celebrated local journalism college degrees but couldn’t land a And the alliance now has more www.crainsdetroit.com. But looking around the state- with its annual awards. It seemed a job. at story not only led to a job than 300 job seekers because of wide landscape, print, broadcast and even digital newsrooms are shrinking. News has become something of a commodity, and nobody seems to want to pay for it. Adver- tisers, meanwhile, have more channels than ever to reach their target customers. So revenue has fallen. Daily newspapers have disappeared or reduced publication schedules. e U.S. had about 400 fewer daily newspapers in 2014 than in 1981. A few weeks ago, an accom- plished business leader in Ann Ar- bor confessed to me: “We used to complain bitterly about the Ann Arbor News. Now that (the daily edition is) gone, we really miss it.” Maybe more Ann Arbor companies should have advertised in the paper. Media is a business. at’s one of the points I made at my induction into the Michigan Journalism Hall 10% of Fame earlier this month in East Lansing. Journalism purists may SAVINGS have been surprised, even oend- ed, by my proposing that reporters and editors be at the table when de- When your business is more energy efﬁcient, it’s cisions are made about changing also more proﬁtable—and DTE Energy wants to help business models for their companies. e business folks and the make that happen. Take John Logiudice, owner newsroom have to work together to of Florentine Pizzeria, for example. DTE worked serve readers and advertising cli- with him to make some small changes that led ents in new and maybe surprising ways in order to keep newsgather- to big savings. Simply installing a programmable thermostat, sink aerators, LED lights and a pre- TALK ON rinse spray valve in the kitchen saved John around THE WEB 10% a month on his energy bill. If you’d like to manage energy use to save money Re: Little Caesars at your business, visit dteenergy.com/savenow. Arena to host Frozen Four, wrestling, basketball Keep lling up our venues - the goal should be as near to 365 days a year use as possible, OK maybe Christmas o. E M Parmelee Aer 92 years in Detroit, Simmons and Clark Jewelers refreshes store Congratulations to Simmons & Clark Jewelers and the Simmons family. A great time to upgrade while the downtown is under going a renaissance. Marc 10 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 SPECIAL REPORT: LAW

D3DAMON VIA ISTOCK Instilling a healthy corporate culture Avoid what happened at Wells Fargo by ensuring associates meet goals honestly, experts say deaths in several accidents. Mayer encourages managers to be proactive By Doug Henze easiest way to do it is not to convince the cus- “You need more than in heading o bad behavior. Special to Crain’s Detroit Business tomer. It’s just to open the accounts. e cus- With a stressful deadline coming up, a super- Companies seeking to steer clear of a Wells tomer might say, ‘No.’” just the incentive visor needs to remind a team, “Let’s make sure Fargo & Co.-style ethics breach need to put e mistake managers make, in the name of system. You need we’re not stepping over the line,” he said. safeguards — not just performance targets — e ciency, is to assume incentives alone will Mayer also cautions against quashing dis- in place, Michigan business school experts say. get the job done, Wiseman said. monitoring or culture.” sent in the ranks. Whistleblowers often come e much-publicized banking scandal, “You need more than just the incentive sys- Robert M. Wiseman, senior associate dean of forward at their own peril. where associates opened bogus customer ac- tem,” Wiseman said. “You need monitoring or the Eli Broad College of Business at Michigan “ ere are stories about people being vili ed counts to satisfy management sales goals, re- culture.” State University. for speaking out against company norms,” he sulted in 2,500 employee terminations and the With the monitoring model, managers act said. “Make sure they are celebrated, rather downfall of CEO John Stumpf and community more like sports referees, using oversight to en- While recently teaching a class of executives, than punished. You have to err on the side of banking head Carrie Tolstedt. Wells Fargo, sure employees meet goals honestly. Instilling Mayer posed this question: If someone in your being overly supportive and grateful of the which agreed in September to pay $185 million a healthy corporate culture can result in asso- organization was a high performer, but also a feedback or employees simply won’t speak up.” in nes, has clawed back millions of dollars in ciates doing the right thing voluntarily. bit of a jerk, how likely would it be that he or she Most corporations put employees through compensation from those leaders. “ ere are very clear values communicated: were promoted? e answer surprised him. some type of training — either online or by “It’s a lesson that needs to be renewed every 10 is is who we are,” Wiseman said. “A number of people in the class said that bringing in a consultant — to try to encourage years, it seems,” said Robert M. Wiseman, senior Businesses can have the best of both worlds would be the norm — as long as they’re a high ethical behavior, Mayer said. But its e ective- associate dean of the Eli Broad College of Busi- — strong nancial performance and princi- performer,” he said. “ at would be a red ag ness depends on whether workers believe it has ness at Michigan State University. “When you set pled behavior, experts agree. for me.” more than public relations or legal value. up an incentive system to encourage people to “High goals embedded in an ethical culture is ere’s nothing wrong with using incentives, “Employees have to believe management re- do one thing, you will often get something com- much less likely to lead to a bad result,” said Dave Mayer points out. Studies have shown it’s an ef- ally cares about it,” he said. pletely di erent that you didn’t anticipate.” Mayer, associate professor of management and fective way to drive performance. Genuinely expecting moral behavior from When management reinforces a desired out- organization at the Stephen M. Ross School of But managers who focus only on nancial your employees, while raiding the company come with a reward, such as a bonus, or with a Business at the University of Michigan. results are asking for trouble, he said. co ers, won’t y, either. punishment — termination for failing to hit a Creating that culture begins before employ- “It’s at the root of a lot of corporate scandals,” “Employees are hypersensitive to hypocri- goal, for example — employees often nd a way. ees are hired. he said, pointing to the nancial crisis of 2008, sy,” Mayer said. “ ese people are not dumb,” Wiseman “Who are you recruiting?” Mayer asked. And which led to the Great Recession, and to Gener- One way corporate leaders get themselves said. “ ey’re going to gure out the shortcut once an associate is hired, how are they social- al Motors Co.’s reluctance to recall vehicles with and their companies into trouble is by being to get that outcome. (In Wells Fargo’s case), the ized? faulty ignition switches, which were blamed for SEE ETHICS , PAGE 11 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 11 Amid tough talk on immigration, fewer rms apply for H-1B visas President Donald Trump signed an executive order last week raising the bar for companies to hire foreign skilled workers. But if applications for H-1B worker visas are any indication, his tough talk on immigration is already making companies reluctant to hire foreign workers. Trump traveled to a manufacturing DUSTIN WALSH plant in Kenosha, Wis., to sign the or- [email protected] der, which was designed to curb the use of H-1B worker visas. ese visas dia. It’s not against the rules because allow employers to bring in foreign the U.S. jobs were eliminated, there- workers for three years to ll jobs they fore not displacing American workers can’t ll with quali ed U.S. workers, with a foreigner working in the U.S. e Hill reported. Under Trump, USCIS and the U.S. e order came only a day after the Department of Justice have said they U.S. Customs and Immigration Ser- will perform more investigations on vices announced a reduction in H-1B companies considered “H-1B depen- visa applications for 2018. USCIS re- dent,” meaning 15 percent or more of ported 199,000 applications were re- their workers are on H-1B visas. ceived for the one-week lottery pro- In Michigan, the average salary for cess that began last week. at was a an H-1B visa application, including ex- 15 percent reduction from last year’s tensions, was $72,687.53 in 2015, ac- Trusted IP Partner to Innovators total of about 236,000. cording to the Department of Labor. Experts predicted a record year for Trump’s executive order directed Since 1865 H-1B visas. e theory was employers the U.S. Labor, Justice, Homeland Se- would double down on commititng to a curity and State departments to un- more secure visa than other categories. dertake a review of the H-1B program e experts were wrong. and make recommendations to ad- ose same experts now believe dress the perceived misuse, e Hill that major users of H-1B visas — which reported. is could include moving have received copious press and angst the wage threshold higher. It’s also ex- from politicians over their use of the pected to raise the quali cations for an federal program — may have backed H-1B visa applicant — which currently Troy, Michigan 248-689-3500 reising.com o of mass lings this year. requires applicants to hold a bache- “Maybe the heavy H-1B lers did a lor’s degree or higher. lot less — that would be enough (to re- However, if the number of applica- duce the applications signi cantly),” tions received this year is an indicator, Michael Nowlan, partner and co-lead- the threat of an H-1B overhaul and the er of the immigration practice group at White House’s tough stance on immi- Clark Hill PLC in Detroit, told Crain’s. gration appears to already be impact- e American Immigration Law- ing the H-1B program. yers Association, in a statement to its Aimee Guthat, a senior attorney at members, said that India-based IT immigration-focused law rm Frago- rms reduced the number of applica- men, Del Rey, Bernsen & Loewy PLLC tions for their workers, keeping those in Troy, previously told Crain’s that jobs in India instead of moving those the anxiety over Trump’s harsh immi- REPORT YOUR workers to the U.S. gration stance was likely to lead to During his presidential campaign, fewer H-1B applications, with immi- Trump introduced laid-o Americans grants deciding to leave the U.S. for WORKPLACE who were asked to train foreign re- friendlier countries. placements including at e Walt Dis- “While there hasn’t been much in ney Co., calling the practice “outra- policy, at least nothing with teeth, the CONCERNS. geous” and “demeaning,” e New perception on immigration has a lot of York Times reported. people afraid for what the future holds Disney and others reportedly were and I’ve had discussions with people The Voice Your Concern Report Line gives your issued H-1Bs, only to train those em- maybe looking to leave and seek em- employees a toll-free, confidential number to report ployees in the U.S. before shipping ployment outside the U.S.,” Guthat those jobs to countries including In- said. workplace concerns.

through cost-cutting — would create Aordable, Safe, Smart—Ulliance Is Your Answer ETHICS a more stable company. for Protecting Your Organization from Diverse Risks FROM PAGE 10 “Compensation that’s mapped to a hyper-focused on the short term, said single factor, like stock price or sales, • Harassment, discrimination, and other respect-related concerns Albert Spalding, associate professor in can tend to create a conict,” he said. • Workplace violence or threats the Mike Ilitch School of Business at “You sometimes have the entire exec- Wayne State University. utive suite focused on, ‘What can we • On-site substance abuse or safety threats “Stockholders want a long-term do to jack up the stock price?’” view from their manager,” he said. Building a company that avoids • Fraud, theft, and waste “Don’t look at, ‘What can I do to max- legal and ethical pitfalls shouldn’t • Sarbanes - Oxley compliant imize what’s going on today?’” rest on the shoulders of manage- When incentivizing sales associ- ment alone, Mayer said. ates, for example, businesses should Associates need to act ethically look at quality of sales, as well as themselves, while also pointing out sales totals, Spalding said. Customer problems to managers in a non- satisfaction surveys and customer threatening way that puts the com- longevity could come into play. pany’s interests rst, Mayer said. Boards of directors could use the “Loyalty is a great thing, but if that same measuring stick for top execu- means you’re not speaking up about tives, Spalding said. Incentives for an ignition switch or the accounts at Contact Ulliance at 866-648-8326 or www.ulliance.com things such as customer retention — Wells Fargo, that’s not doing the versus unsustainable pro t growth greater good for society,” he said. 12 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 CRAIN'S LIST: LARGEST LAW FIRMS Ranked by number of attorneys in Southeast Michigan Total local attorneys Other Company Jan. Staff Senior full-time Michigan Worldwide Address 2017/ Partners Associates attorney attorney attorneys Jan. Jan. Rank Phone; website Top local executive 2016 2017 2017 2017 2017 2017 2017 2017 Representative clients Honigman Miller Schwartz and Cohn LLP David Foltyn 207 0 0 0 0 0 248 271 Detroit Institute of Arts, Diplomat Pharmacy Inc., 2290 First National Building, 660 Woodward Ave., chairman and CEO 222 General Motors LLC, Huron Capital Partners LLC, 1 Detroit 48226-3506 Kellogg Co., Ramco-Gershenson Properties Trust, (313) 465-7000; www.honigman.com Quicken Loans Inc., Rockbridge Growth Equity LLC, Taubman Centers Inc., Trinity Health Dickinson Wright PLLC William Burgess 172 131 41 0 0 0 216 440 NA 2 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 172 (313) 223-3500; www.dickinsonwright.com Dykema Gossett PLLC Peter Kellett 139 83 28 7 9 12 166 420 USAA, Ford Motor Co., JP Morgan Chase, General 3 400 Renaissance Center, Detroit 48243 chairman and CEO 148 Motors, Toyota, ITG Brands (313) 568-6800; www.dykema.com Bodman PLC Ralph McDowell 135 98 29 6 1 1 139 139 Comerica Bank; Archdiocese of Detroit; Blue Cross Sixth Floor at Ford Field, 1901 St. Antoine St., chairman 135 Blue Shield of Michigan; Lear Corp.; Ford family; 4 Detroit 48226 Meridian Health Plan; The Huntington National (313) 259-7777; www.bodmanlaw.com Bank; Art Van Furniture; Cerberus Capital Management Miller, Canfield, Paddock and Stone PLC Michael McGee 132 80 25 0 27 0 172 205 FCA US, Comerica, Consumers Energy, University of 150 W. Jefferson Ave., Suite 2500, Detroit CEO 135 Michigan, City of Detroit, Barton Malow, Siemens, 5 48226-4415 Valassis Communications, Olympia Development (313) 963-6420; www.millercanfield.com Butzel Long PC Justin Klimko 119 77 12 25 2 3 119 143 NA 150 W. Jefferson Ave., Suite 100, Detroit 48226 president and 119 6 (313) 225-7000; www.butzel.com managing shareholder Jaffe Raitt Heuer & Weiss PC Bill Sider 108 81 27 0 0 0 108 108 Sun Communities, Inc., Redico, Strength Partners, 27777 Franklin Road, Suite 2500, Southfield CEO and managing 108 Inland Pipe Rehabilitation. 7 48034-8214 partner (248) 351-3000; www.jaffelaw.com Clark Hill PLC John Hern 107 58 22 0 27 0 132 315 NA 8 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 119 (313) 965-8300; www.clarkhill.com Plunkett Cooney PC Dennis Cowan 90 50 27 0 13 0 127 147 Bank of America, Beaumont Health System, First 38505 Woodward Ave., Suite 100, Bloomfield Hills president and CEO 98 American Title Insurance Co., Frankenmuth Mutual 48304 Insurance Co., Huntington National Bank, Liberty 9 (248) 901-4000; www.plunkettcooney.com Mutual Insurance Co., Michigan Municipal League Liability & Property Pool, PNC Bank, State Farm Insurance, Wal-Mart Stores Kitch Drutchas Wagner Valitutti & Sherbrook Mark Wisniewski 87 47 27 0 13 0 93 101 NA 10 1 Woodward Ave., Suite 2400, Detroit 48226-5485 chairman and CEO 95 (313) 965-7900; www.kitch.com Brooks Kushman PC Mark Cantor 80 41 29 0 10 1 80 84 Ford Motor Co., Lear Corp., 5-Hour Energy, 11 1000 Town Center, 22nd Floor, Southfield 48075 president 78 HoMedics, MASCO, Wayne State University, USC (248) 358-4400; www.BrooksKushman.com Stevens Institute for Innovation, Office Depot Howard & Howard Attorneys PLLC Mark Davis 70 51 17 0 2 0 70 134 BASF Corp., BMO Harris Bank N.A., Konami Gaming 12 450 W. Fourth St., Royal Oak 48067 president and CEO 70 Inc., Martinrea International Inc., Stryker Corp., (248) 645-1483; www.howardandhoward.com ThyssenKrupp Garan Lucow Miller PC Robert Goldstein 63 38 25 0 0 0 71 74 NA 13 1155 Brewery Park Blvd., Suite 200, Detroit 48207 chairman of 60 (313) 446-1530; www.garanlucow.com executive committee Giarmarco, Mullins & Horton PC Executive committee 62 32 30 0 0 0 62 62 NA 101 W. Big Beaver Road, 10th Floor Columbia 70 14 Center, Troy 48084-5280 (248) 457-7000; www.gmhlaw.com Harness, Dickey & Pierce PLC Executive committee 60 47 13 0 0 0 60 114 NA 15 5445 Corporate Drive, Suite 200, Troy 48098 57 (248) 641-1600; www.hdp.com Zausmer, August & Caldwell PC Mark Zausmer 60 16 44 0 0 0 60 60 Philadelphia Insurance, State Farm Insurance, ITC 31700 Middlebelt Road, Suite 150, Farmington managing 45 Holdings, Michigan Department of Transportation, 15 Hills 48334 shareholder Everest National Insurance Co., Auto Owners (248) 851-4111; www.zac.com Insurance Co., EMC Insurance Co., SMART, Wal- Mart Stores, Great Lakes Water Authority Hewson & Van Hellemont, P.C. Elaine Sawyer, 55 27 28 0 0 0 55 55 NA 25900 Greenfield Road, Suite 650, Oak Park 48237 Michael Jolet, Diane 59 17 (248) 968-5200; www.vanhewpc.com Hewson, Robert Steffes senior partners Kerr, Russell and Weber PLC Executive committee 55 34 21 0 0 0 55 55 NA 17 500 Woodward Ave., Suite 2500, Detroit 48226 55 (313) 961-0200; www.kerr-russell.com Secrest, Wardle, Lynch, Bruce Truex, 52 41 11 0 0 0 65 65 NA Hampton, Truex and Morley P.C. president and co- 52 19 2600 Troy Center Drive, P.O. Box 5025, Troy managing partner; 48007-5025 Mark Morley, co- (248) 851-9500; www.secrestwardle.com managing partner The Mike Morse Law Firm Michael Morse 51 0 50 0 0 0 51 51 Auto accident victims; Social Security disability; dog 24901 Northwestern Highway, Suite 700, attorney/owner 51 bite victims; premises liability 20 Southfield 48075 (248) 350-9050; www.855mikewins.com Collins Einhorn Farrell PC Neil MacCallum, 50 14 22 3 11 0 50 50 NA 21 4000 Town Center, Ninth Floor, Southfield 48075 chairman; Michael 47 (248) 355-4141; www.ceflawyers.com Sullivan, president Sullivan, Ward, Asher & Patton PC Anthony Asher 49 30 10 0 8 0 48 49 NA 25800 Northwestern Highway., 1000 Maccabees president and CEO 49 22 Center, Southfield 48075-8412 (248) 746-0700; www.swappc.com

This list is an approximate compilation of the largest law firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Total number of attorneys does not include of counsel. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the law firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. If you believe your company should be on this list, contact Sonya Hill at [email protected]. An expanded version of this list is available with a Crain’s data membership at crainsdetroit.com/lists CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 13 CRAIN'S LIST: LARGEST GREATER MICHIGAN LAW FIRMS Ranked by number of attorneys outside Southeast Michigan Outstate Company attorneys Worldwide Address Jan. 2017/ attorneys Rank Phone; website Top Michigan executive 2016 Jan. 2017/ 2016 Michigan office locations Representative clients Warner Norcross & Judd LLP Douglas Dozeman 156 195 Grand Rapids, Southfield, Amway, Consumers Energy, Dow Chemical, Fifth Third 900 Fifth Third Center, 111 Lyon St. NW, Grand Rapids managing partner 163 201 Macomb County, Midland, Bank, MAHLE Industries, Perrigo, Robert Bosch, 1 49503 Muskegon, Kalamazoo, Holland, Spectrum Health, Stryker, Whirlpool (616) 752-2000; www.wnj.com Lansing Varnum LLP David Khorey and 122 158 Grand Rapids, Grand Haven, NA 333 Bridge St. NW, Grand Rapids 49501-0352 Thomas Kyros, 117 151 Kalamazoo, Lansing, metro 2 (616) 336-6000; www.varnumlaw.com managing partners Detroit, Novi, Ann Arbor, Hastings Miller Johnson Craig Mutch 99 99 Grand Rapids, Kalamazoo Benteler Automotive Corp., Bronson Healthcare, 45 Ottawa Ave. SW, Suite 1100, Grand Rapids 49503 managing member 101 101 Covenant Health, Gordon Food Service, Kellogg Co., 3 (616) 831-1700; www.millerjohnson.com Metro Health, Spectrum Health, Stryker Corp., Trinity Health, Washtenaw County Foster Swift Collins & Smith PC Michael Sanders 75 97 Lansing, Southfield, Grand NA 4 313 S. Washington Square, Lansing 48933 president 72 91 Rapids, Detroit, Holland, St. (517) 371-8100; www.fosterswift.com Joseph Smith Haughey Rice & Roegge PC William Jack, Jr. 68 78 Grand Rapids, Traverse City, NA 5 100 Monroe Center, Grand Rapids 49503 CEO 63 68 Holland, Muskegon, Ann Arbor (616) 774-8000; www.shrr.com Dickinson Wright PLLC William Burgess 44 440 Ann Arbor, Troy, Detroit, Grand NA 6 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 43 415 Rapids, Lansing, Saginaw (313) 223-3500; www.dickinsonwright.com Rhoades McKee PC Paul McCarthy 43 43 Holland, Grand Rapids NA 7 55 Campau Ave. NW, Suite 300, Grand Rapids 49503 president, executive 45 45 (616) 235-3500; www.rhoadesmckee.com committee member Honigman Miller Schwartz and Cohn LLP David Foltyn 41 271 Ann Arbor, Bloomfield Hills, Detroit Institute of Arts, Diplomat Pharmacy Inc., 2290 First National Building, 660 Woodward Ave., Detroit chairman and CEO 36 276 Detroit, Grand Rapids, General Motors LLC, Huron Capital Partners LLC, 8 48226-3506 Kalamazoo, Lansing Kellogg Co., Ramco-Gershenson Properties Trust, (313) 465-7000; www.honigman.com Quicken Loans Inc., Rockbridge Growth Equity LLC, Taubman Centers Inc., Trinity Health Miller, Canfield, Paddock and Stone PLC Michael McGee 40 205 Detroit, Ann Arbor, Grand FCA US, Comerica, Consumers Energy, University of 150 W. Jefferson, Suite 2500, Detroit 48226 CEO 41 254 Rapids, Kalamazoo, Lansing, Michigan, City of Detroit, Barton Malow, Siemens, 9 (313) 963-6420; www.millercanfield.com Troy Valassis Communications, Olympia Development, Wells Fargo Bank NA Plunkett Cooney PC Dennis Cowan 37 147 Bloomfield Hills, Detroit, Flint, Bank of America, Beaumont Health System, First 38505 Woodward Ave., Suite 100, Bloomfield Hills 48304 president and CEO 32 142 Grand Rapids, Kalamazoo, East American Title Insurance Co., Frankenmuth Mutual (248) 901-4000; www.plunkettcooney.com Lansing, Marquette, Mt. Insurance Co., Huntington National Bank, Liberty 10 Clemens, Petoskey Mutual Insurance Co., Michigan Municipal League Liability & Property Pool, PNC Bank, State Farm Insurance, Wal-Mart Stores Fraser Trebilcock Davis & Dunlap PC Brian P. Morley 36 40 Lansing, Detroit, Grand Rapids NA 11 124 W. Allegan, Suite 1000, Lansing 48933 president 34 36 (517) 482-5800; www.fraserlawfirm.com Mika Meyers PLC Douglas Donnell 33 33 Grand Rapids, Caledonia, NA 12 900 Monroe Ave. NW, Grand Rapids 49503 managing member 33 33 Rockford, Manistee (616) 632-8000; www.mikameyers.com Dykema Gossett PLLC Peter Kellett 27 420 Ann Arbor, Bloomfield Hills, USAA, Ford Motor Co., JP Morgan Chase, General 13 400 Renaissance Center, Detroit 48243 chairman and CEO 31 436 Detroit, Grand Rapids, Lansing Motors, Toyota, ITG Brands (313) 568-6800; www.dykema.com Thrun Law Firm PC Gordon VanWieren 26 26 East Lansing, Novi, Grand NA 14 2900 West Road, East Lansing 48823 president 25 28 Rapids, Traverse City (517) 484-8000; www.thrunlaw.com Clark Hill PLC John Hern 25 315 Birmingham, Detroit, Grand NA 15 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 24 292 Rapids, Lansing (313) 965-8300; www.clarkhill.com Braun Kendrick Finkbeiner PLC Timothy Curtiss 24 24 Saginaw, Midland, Mount General Motors, NSI- A Division of West Bend 4301 Fashion Square Blvd., Saginaw 48603 managing partner 24 24 Pleasant Insurance, Saginaw Valley State University, 16 (989) 498-2100; www.braunkendrick.com Frankenmuth Mutual Insurance, Merrill Tool, Dow Chemical, McLaren Health Care, Great Lakes Bay Health Centers McShane & Bowie PLC John Grant 22 22 Grand Rapids NA 17 99 Monroe Ave. NW, Suite 1100, Grand Rapids 49503 managing partner 20 20 (616) 732-5000; www.msblaw.com Barnes & Thornburg LLP Robert Sikkel 19 493 Grand Rapids Wolverine World Wide Inc., Gordon Food Service Inc., 171 Monroe Ave. NW, Suite 1000, Grand Rapids Grand Rapids office 21 472 Trinity Health/Mercy Health Partners, Faurecia NA, 18 49503-2694 managing partner Amway, Quanex Building Products Inc., Pilkington (616) 742-3930; www.btlaw.com North America Inc., Rockwell Collins, The Dow Chemical Co., and Whirlpool Price Heneveld LLP Kevin Grzelak 18 18 Grand Rapids Corning, Ford Motor, Gentex Corp., LECO, NASA, 19 695 Kenmoor Ave. SE, Grand Rapids 49546 managing partner 16 16 Quality Edge, SAF-Holland, Schwabe, Steelcase, (616) 949-9610; www.priceheneveld.com Whirlpool Corp. Scholten Fant PC Robert Sulliivan 18 18 Grand Haven NA 19 100 N. Third St., Grand Haven 49417 managing Shareholder 17 17 (616) 842-3030; www.scholtenfant.com Loomis, Ewert, Parsley, Davis & Gotting PC Kevin Roragen 18 18 Lansing NA 19 124 W. Allegan St., No. 700, Lansing 48933 president 21 21 (517) 482-2400; www.loomislaw.com Lewis, Reed & Allen PC William Redmond 17 0 Kalamazoo NA 22 136 E. Michigan Ave., Suite 800, Kalamazoo 49007 managing partner 15 15 (269) 388-7600; www.lewisreedallen.com Cunningham Dalman PC Jeffrey Helder 15 15 Holland NA 23 321 Settlers Road, P.O. Box 1767, Holland 49422-1767 managing partner 16 16 (616) 392-1821; holland-law.com Secrest, Wardle, Lynch, Hampton, Truex and Morley PC Bruce Truex, president 13 65 Troy, Grand Rapids, Lansing NA 2600 Troy Center Drive, P.O. Box 5025, Troy 48007-5025 and co-managing 14 66 24 (248) 851-9500; www.secrestwardle.com partner; Mark Morley, co-managing partner

This list is an approximate compilation of the largest law firms with a presence outside of Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Total number of attorneys does not include "of counsel." It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the law firms. Firms are listed with the address and top executive of their main Michigan office. NA = not available. If you believe your company should be on this list, contact Sonya Hill at [email protected]. An expanded version of this list is available with a Crain’s data membership at crainsdetroit.com/lists 14 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 DEALS & DETAILS CONTRACTS Road, Van Buren Township. Tele- website. Website: downtownplym- J Qualitech, Bingham Farms, a phone: (734) 325-7567. 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Lydia Gutierrez, president and amplifying messages in a cost-e- CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 15 Report: Gig work could prevent working poor from getting ahead By Lindsay VanHulle gree and more likely to have low is motivated largely by nancial Crain’s Detroit Business/Bridge Magazine family income. ey are more likely considerations or the need to nd One workforce trend that could to experience job instability, have work that can t around the other make it harder to lift the working worker-safety issues and feel less demands on their time, such as poor into nancial stability: e rise satis ed with their bene ts and em- schooling or child care.” of the gig economy. ployment arrangements than stan- Pew’s research found 60 percent Perhaps best personi ed by driv- dard full-time workers.” of people who use online platforms ers for San Francisco-based at GAO report, published in for work consider the income from ride-hailing companies Uber and April 2015, reviewed a variety of fed- that labor “essential” or “important” Lyft, gig work — that which is hired eral data sources and found that and are more likely to not have at- on short-term contracts or by the workers unattached to permanent tended college and have lower task — oers exibility and, some- employment are less likely to have household incomes. On the ip side, times, a bump in pay for the working bene ts provided by an employer people who use digital networks to poor. But that comes with long-term and more likely to earn less on an sell goods over the internet are more costs — the lack of a traditional ca- hourly and annual basis than their likely to be well-to-do and better-ed- reer ladder that oers advancement permanent counterparts. ucated, Pew found. or health bene ts that oer a cushion e nature of gig work has “If you retitle ‘dead-end job’ ‘gig,’ in tough times. drummed up new legal questions, then it has ca- While workers of all stripes can including the de nition of “employ- chet,” said Jerry pick up freelance or project jobs to ee” and whether worker protections Davis, a man- make an extra buck, the gig life poses like overtime pay, paid leave and agement profes- that particular conundrum for Mich- health bene ts extend to contracted sor at the Uni- igan’s working poor, according to a workers not permanently on a com- versity of report out this month by the Michi- pany’s payroll. Michigan’s Ross gan Association of United Ways. It also could make collecting em- School of Busi- e report studies the economic ployment data more dicult for ness, who is plight of a population often referred these types of studies, said Nancy skeptical of the to as the working poor. In 2009, Unit- Lindman, interim CEO of the Michi- Jerry Davis: Call gig economy’s ed Way coined the group ALICE, for gan Association of United Ways. For them tasks, not ability to con- “asset-limited, income-constrained that reason, it’s hard to get an accu- jobs. tribute to eco- but employed.” An ALICE household rate count of how many people hold nomic mobility. generally has income above the fed- gig jobs in Michigan. “You shouldn’t call them jobs. ey eral poverty limit, but doesn’t earn Not only that, but available data is are tasks.” enough to aord basic expenses, undecided on what type of worker Practically speaking, Davis said, a such as housing and child care. — independent contractor, self-em- driver for San Francisco-based Uber About a quarter of Michigan ployed person, temp laborer and isn’t going to be promoted to pro- households can be considered AL- others — should be included in the gram the ride-hailing company’s ICE; four in 10 are either ALICE or de nition of a contingent worker, mobile app, which its drivers use to impoverished. at rate has persist- and whether people who take on pick up rides. ed since the rst Michigan report gigs are using them to make ends In a December 2015 paper he was issued in 2014. meet or as a side job to create a - wrote for the Brookings Institution, “e nature of work is changing nancial cushion. Davis argues the shift in American dramatically in Michigan and across Nationally, the share of contrac- corporate culture away from labor the country, and these changes im- tors, freelancers and temp workers and management toward share- pact ALICE workers disproportion- increased from an estimated 10.7 holder interests is one reason why ately,” the report’s authors wrote. percent in 2005 to nearly 16 percent the gig economy has taken hold. He “e most signi cant change is that in 2015, according to research pub- noted that Wal-Mart Stores Inc.’s low-wage jobs, especially those in lished last year by economists at share price dipped by nearly 3 per- the service sector, are increasingly Harvard and Princeton universities. cent after the Bentonville, Ark.- shifting away from traditional full- An estimated 53 million Americans based discount retailer announced time employment with bene ts to- freelance, based on the ndings in plans to raise its starting wage at its wards part-time, on-demand or 2014 of a survey of more than 5,000 U.S. stores to $9 per hour — an esti- contingent employment with uc- people commissioned by Freelanc- mated $1 billion impact to the com- tuating hours and few bene ts.” ers Union and Elance-oDesk, a free- pany’s bottom line. Michigan’s labor pool is dominat- lance platform now called Upwork. “at’s a real advantage for peo- ed by low-wage jobs, with nearly In a survey last summer, the ple working at Wal-Mart,” Davis said. two-thirds of all jobs paying less Washington, D.C.-based Pew Re- “ey were trying to do the right than $20 per hour, according to Unit- search Center found that 5 percent thing, arguably, here, but Wall Street ed Way researchers, citing U.S. Bu- of Americans earned some income does not reward you for that.” reau of Labor Statistics data. over the past year by using an online e question for economists is It’s the prevalence of low-wage job platform to pick up work in in- how people will get ahead in careers jobs in Michigan that has researchers formation technology or perform- when signs indicate that work will be watching the potential eects of the ing data entry. Another 2 percent organized on a more impromptu ba- economy’s shift toward proj- made money by driving for a sis, he said. For instance: What hap- ect-based work. ride-hailing company, and 1 per- pens to an Uber driver if he or she On one hand, “income earned cent picked up shopping, delivery or can’t give rides because a child is through alternative and supplemen- cleaning tasks. sick at home or is somehow injured? tal employment is increasingly criti- “At one end of the spectrum are Davis argues that the answer cal for many ALICE families,” the au- casual users who perform mostly could look like the generous social thors of the Michigan report wrote. online tasks in their spare time. safety net in Denmark, which could “ese positions may help ALICE ese users tend to take on these help workers in the gig economy households who need to ll short- jobs for modest amounts of money,” choose to take on tasks because of term gaps in standard employment, wrote Aaron Smith, an associate di- their exibility and short-term na- and may provide more lucrative op- rector of research on internet and ture rather than out of need. portunities than exist in the tradi- technology issues for Pew. “At the A system that provides for gaps in tional employment market.” other end are dedicated users who employment or income, health care On the other: “e U.S. Govern- rely on the income they earn from and retirement, he contends, could ment Accountability Oce’s report these digital platforms to a much help the U.S. avoid becoming a soci- on the contingent workforce found greater extent; who are more likely ety “with a few rich people and a that core contingent workers are to gravitate towards physical tasks; whole lot of poor people desperately less likely to have a high school de- and whose usage of these platforms making it from day to day.” 16 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 Pinnacle Homes targets ‘active adult’ homeowners OU selects By Tyler Cliord tcli[email protected] A little more than a year ago, Tom nalists for Allam and his wife Sandy agreed it was time to downsize. e couple of nearly 50 years was president post living in northern Washington Township in a 4,000-square-foot Oakland University has named home they had built in 1998. With the two nalists in its search for a both of their sons out of the house new president: Carl Camden, presi- and living on their own, Tom Allam dent and CEO of Kelly Services Inc.; said it was time to move to a place and Ora Hirsch Pescovitz, M.D., for- that oered exibility, leisure and in- mer CEO of University of Michigan dependence. Health System. “What motivated us was the ex- Camden, 62, who has been with tent of the outside work when you the Troy-based stang company for have an acre property and a back 22 years, said he will step down from pond,” he said. “We wanted to move Kelly Services eective May 10. Cur- to an easier lifestyle where the snow rent Executive Vice President and and the grass is done.” COO George Corona will replace In February, the Allams moved him, Camden said. into a newly built ranch-style house Camden previously worked as a in a community in Washington department chair at Cleveland State Township near Mound and 26 Mile University. He roads called Glacier Club, part of earned three de- Bloomeld Hills-based Pinnacle grees by the age Homes of Michigan LLC’s Aspire of 25: a doctor- Collection. ate from e e Aspire Collection is a net- Ohio State Uni- work of neighborhood develop- PHOTOS COURTESY OF PINNACLE HOMES versity, a mas- ments in Southeast Michigan Homebuyers can select from two to three oor plans, pick a lot and personalize the design of a home as part of Pinnacle ter’s degree at launched three years ago. ey oer Homes’ Aspire Collection. Central Missouri about 2,000-square-foot homes with State University two to three bedrooms, 2 1/2 bath- cy Hills community in West Bloom- Carl Camden and a bachelor's rooms and an attached garage for eld to 200 homes in Glacier Club. from Southwest two to three cars. Homes start as low as $300,000 in Baptist University. Pinnacle Homes builds about 20- e Corners at Cherry Hill Village in “I had long communicated that I 25 homes a year in each of its eight Canton to $900,000 in Legacy Hills wanted to return ultimately to pub- communities, targeting a demo- in West Bloomeld. lic service after I left the business graphic of people 50 years old and Fingeroot said about 100 homes world and would be open to the older that Managing Director How- in the collection have been sold with right opportunity, and Oakland Uni- ard Fingeroot calls “active adult.” about 70 fully built thus far. He said versity became that opportunity,” he is group is made up of people who the Aspire Collection will exceed said. are looking to downsize or empty more than $250 million in develop- “In our conversations with Carl nesters — those whose children are ment. (Camden), he has a unique view of away at college or have moved out, e homes are designed by Troy- the conuence of higher education he said. based Martini-Samartino Design and jobs,” DeVore said. “It wasn't re- “A majority of the folks that we Group LLC, Bloomeld Hills-based ally that he’s a CEO of a public com- see, they would do something called Alexander V. Bogaerts and Associ- pany (as much) as it was that he’s a age in place,” Fingeroot said. ates PC and Pontiac-based TK De- CEO of a public stang company. If “ ey’re not looking to retire and signs Inc. you think about where the economy move to Florida. ey just want a e communities oer mainte- is going in the jobs area, he has a dierent home and dierent life- A rendering of a 2,000-square-foot ranch oered by Pinnacle Homes in its nance-free luxury ranch home liv- pretty competent background.” style in the place they live.” Northridge development in Clarkston. ing where the association cuts the e other candidate, Pescovitz, is e active adult is a growing de- lawn, shovels the snow and handles currently Eli Lilly and Co.’s senior mographic locally and nationally, in Southeast Michigan and 99 mil- lows buyers to pick a plot, choose landscaping. Association dues are vice president and U.S. medical made up by the baby boomer gener- lion across the country. In 2015, from two to three oor plans and $100-$200 a month, Fingeroot said, leader for Lilly Bio-Medicines. ation, people born following World those numbers jumped to nearly 1.6 personalize the design. e home is giving residents the freedom to get She is a renowned pediatric en- War II between 1945 and 1964. It million in Southeast Michigan and built within about eight months, up and go as they please. docrinologist was been the largest American gen- nearly 111 million in the United Pinnacle’s Fingeroot said. Allam, who owns Shelby Town- and researcher eration in history up until the mil- States, the Southeast Michigan “We’re developers and home- ship-based Allam Financial Services who has pub- lennial generation. Council of Governments and U.S. builders. We develop the subdivi- Group Inc., said the couple’s lished more “Fifty-ve is the new 40. ey Census Bureau estimated. sion and then we build all the 2,000-square-foot home backs up to than 190 papers view themselves as being very ac- With a smaller Generation X and homes,” he said. “ ese are ranch Glacier Club Golf Course and pro- and books. She tive,” Home Builders Association of larger millennial generation follow- homes that are highly amenitized. vides access to nearby doctors and also serves as an Southeastern Michigan CEO Mi- ing baby boomers, Stoskopf said he We are not only providing the house, shopping, freedom and leisure that adjunct profes- chael Stoskopf said. “ ey want thinks the active adult market will but given the location and every- he and his wife need. e home is an sor of pediatrics ranch style, main oor living with a be sustainable for the next 50 years. thing else we are providing a life- open concept that connects the at the Indiana small basement and a smaller lot. “You’ll see a little bit of a dip, but style for these buyers.” kitchen, dining room and family Ora Hirsch University ey’d rather be out traveling and then you’ll get to a point where mil- e Aspire Collection parallels room with windows that overlook a Pescovitz School of Medi- biking as opposed to mowing 3 lennials are going to start to retire,” the $1.2 billion planned Blossom golf course. cine. acres of lawn in a 3,000-square-foot he said. “ e oldest millennial is 37, Collection led by Auburn Hills- It’s also close to his oce on Van “ ere’s lots of people in this house. It creates a more convenient which sounds surprising. ... In 20 based Moceri Cos., which in Octo- Dyke Avenue and 26 Mile Road, the community that know (Pescovitz) lifestyle, and from a new home con- years we’ll have the rst two years of ber announced a $300 million de- Macomb Orchard Trail for Sandy to and have a high regard for her,” De- struction standpoint that's easy.” the millennial generation turning 55 velopment at the Maple Lane Golf do her daily 4-mile walk, and it’s 10 Vore said. “She’s kind of a prolic e 50-plus demographic has and then you'll have a volume per- Club in Sterling Heights. minutes away from Rochester where fundraiser, for one, but also a very jumped by more than 25 percent spective slightly larger than the baby Pinnacle Homes plans to build they visit frequently. good strategic fundraiser and she since the turn of the millennium, ac- boomer generation. Will preferenc- more than 500 homes for its Aspire “ ere are just a lot of factors. At has a great story…I really feel like cording to U.S. Census records. In es change? at’s how businesses Collection in Clarkston, West our age, we’re at the point where we she’s broken a lot of barriers in her 2000, more than 1.2 million people that are addressing the active adult Bloomeld, South Lyon, Northville, said we’re not going to have that out- career and I think she’d be an inspi- 50 and older lived in Southeast lifestyle are going to have to look at Canton, Superior Township and side stu or stairs,” he said. “And we ration for a lot of people.” Michigan and more than 76.5 mil- i t .” Washington Township, Fingeroot travel to San Antonio four times a e university's board of trustees lion in the United States. By the 2010 To address the emerging active said. e communities are made up year to see our 11- and 14-year-old will vote on the two candidates and census, more than 1.5 million lived adult market, Pinnacle Homes al- of as many as 17 homes in the Lega- grandsons.” announce their decision May 4. April 24, 2017 CRAIN’S DETROIT BUSINESS Page 17

CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 17 REAL ESTATE JOB FRONT VACANT LAND INDUSTRIAL PROPERTY POSITIONS AVAILABLE POSITIONS AVAILABLE

Â DOWNTOWN ROCHESTER Â ST. CLAIR COUNTY, MI û MARKETING DIRECTOR û PRINCIPAL ARCHITECT: JOB CODE PA-01 3.4 Acre Vacant Land 430,000 Sq. Ft., 20 Acre Portfolio For Walk to Downtown OHM Advisors is a community As a PA, anlyze reqs/dsgng android applns. S/W dsgn, dev, code review, Unit testing Sale by Owner. $760,000 Gross Rent, advancement firm. If you welcome the Borders Clinton River & Pollyann Trail debug issues, write test cases. Dev & track KPIs for s/w releases to insure it meets 26 Year History. Industrial, Warehouse, opportunity to contribute to a community- Offices. Much Potential. Email Contact: focused architecture, engineering and the acceptance criteria. identify priorities, dev & track KPI. Conduct code & dsgn Call Chuck 248-821-0752 review, approve changes. perf analysis. Work prog mngr to dev proj plan,to manage [email protected] planning team, look no further. We are looking for a creative, highly organized proj risk & secure domain deliv. Req: Bach’s deg or forgn equiv in Comp Sci, marketing director who will be responsible Electronics, Electrical or T’com Eng with 8 yrs progressive exp in SW des & dev on WATERFRONT PROPERTY Mob Smartpho or In-Veh Infot plat in lang of C/C++ and Java as SSE/SE/Lead OFFICE SPACE for managing and executing marketing strategies and business development specific to Android Applns F/W & dev. Alter: MS deg or forgn equiv in Comp Sci, PETOSKEY HOME plans designed to achieve the growth Electronics, Electrical or T’com Eng with 4 yrs of ext progressive exp in SW des & Beautiful Lake Michigan Views STUDIO SPACE objectives of the firm. The ideal candidate dev on Mob Smartpho or In-Veh Infot plat in lang of C/C++ and Java as (9/WOODWARD) will have an established career in SSE/SE/Lead specific to Android Applns F/W & dev. Exp incl: Min8 yrs of exp in s/w Marketing and Business Development with design/dev on mobile smartphone or In-Veh Infot plat in lang of C/C++ and Java, 2,500 Sq. Ft. ~ $1,500 Per Month a minimum 15 plus years of experience OOPS & OOD, UI F/W dev in In-Vehicle or smart phone. 5 yrs of exp in Android Also and 5 years in a supervisory role. This Framework development. Exp in IVI multimedia, A2DP, AVRCP, MTP. Exp in 1,000 Sq. Ft. ~ $500 Per Month. position will require working with a android/ protocol comp testing, GIT, GERRIT, UML. OS concepts, OOP, dsgn multidisciplinary team of engineers, patterns, sys comp of Linux, Android, tools for debugging. Work location: Livonia, MI Call 248-398-7000 architects, planners, and technicians May have long term assignments in other locations in U.S. including Novi, MI areas. across multiple offices and states. Apply Online at: Please send resumes to: RESIDENTIAL PROPERTY • Family Resort or Retirement www.ohm-advisors.com Harman Connected Services Attn: Gokulakrishnan Deivanayagam • QUALITY throughout Prime Residential POSITIONS AVAILABLE Job Code PA-01 • 4/3/1, Elevator, 2-car Garage Development 2002 156th Avenue NE #200 • Clubhouse, Pool, Tennis Opportunity Bellevue, WA 98007 • Walk everywhere in Petoskey 107 Acres ~ L’Anse Creuse Schools û SOFTWARE û • Price: $569,000 Chesterfield Twp. Software Engineering Manager ********* (Multiple Positions) (Accenture LLP; PRINCIPAL ENGINEER: JOB CODE PE-01 Joe Blachy 14 Fully Approved Lots Southfield, MI): Plan application and (231) 409-9119 integration testing for project and ongoing Auburn Road Rochester Hills As a PE gathering, anlyze reqs/dsgng on android applns. S/W dsgn, dev, code Call anytime between 7am & 10pm maintenance associated with multiple imple/review, Unit testing. Imp S/W dev prcss, dev models, for applns built on android Email: [email protected] Website: joeblachy.com Core Commercial Real Estate system components or applications for [email protected] / 586-992-8800 Accenture or our clients. Must have P/F for mobile devices. Proj plng/res est. debug iisues/unit testing. Imple var. OEM em- 420 Howard St., Petoskey, MI 49770 willingness and ability to travel bedded applns. Home scree, device prov. UI prof, ststus bar on Mobile porting android domestically approximately 80% of the OS on the H/W. integ android tlphny, f/w & applns. Lead commns. b/w clinet & Har. time to meet client needs. For complete Support/mentor. Keep abreast new tech. practice in android P/F/. Req: M.S. deg or job description, list of requirements, and forgn equiv in Comp Sci, Electronics or T’com Eng with 3 yrs ext exp in SW des & dev to apply, go to: on Mob Smartpho as SE/SSE/Lead in Android Applns framework & development. Al- MARKET PLACE www.accenture.com/us-en/careers ter: B.S deg or forgn equi in or forgn equiv in Comp Sci, Electronics or T’com Eng with (Job Number: 00457839) 5 yrs prog. exp in SW des & dev on Mob Smartpho as SE/SSE/Lead in Android Applns framework & development. Exp incl: Min 3 yrs of in applns framework & applns REQUEST FOR PROPOSALS FRANCHISE OPPORTUNITIES dev. Esp. in telephony & connectivity in Android P/F for Mobile. 3 yrs exp in C\C++, MISCELLANEOUS Java, SQL Prog lang. Android, SDK/NDK, Jira, Bugzilla, GIT/Gerrit version cntrl. Exp in dsng, building mobile applns in android P/F. gatheirng/anlysng cust reqs. Gap analy- INVESTMENT sis, sugg dev model. Comm channels. Dep model. Proj plng/est/archit dsgn&solns. SURVEY Blackbery=ry SDK/NDK & Ms proj. Work location: Livonia, MI May have long term as- CONSULTANT RFP signments in other locations in U.S. including Novi, MI areas. The General Retirement System ANALYZE Please send resumes to: City of Detroit has issued a Harman Connected Services Attn: Gokulakrishnan Deivanayagam Request for Proposal for MATCH Job Code PE-01 Investment Consulting Services. 2002 156th Avenue NE #200 The deadline for submitting a Bellevue, WA 98007 proposal is June 2, 2017. FRANCHISES AVAILABLE CHECK US OUT AT For further information please WWW.PASSPORTPIZZA.COM RETIREMENT SYSTEMS OF THE CALL (586) 992-8800 CITY OF DETROIT visit our website: www.rscd.org OR EMAIL [email protected] CrainsDetroit.com/JobConnect | Joint Personnel Committee INDUSTRIAL SERVICES BUSINESS OPPORTUNITIES 500 Woodward Ave, Suite 3000 Advertise your Detroit, Michigan 48226 C.W. JENNINGS $$ BUSINESS OPPORTUNITY $$ Products and Services in JOB TITLE: Executive Director - Retirement Systems INDUSTRIAL EXCHANGE Established Bridal & Formal SALARY: $150,000 - $200,000 North Macomb County Crain’s Detroit Business (Starting salary is dependent upon Global Industrial Consulting qualifications and experience) Construction • Acquisitions Seeking working Partner w/Capital. Possible future ownership. Call Us For Personalized The City of Detroit has two distinct and separate retirement Exporting • Financing systems: the General Retirement System; and the Police and Call 248-651-5267 Service: (313) 446-6068 (855) 707-1944 Fire Retirement System. The legal and fiduciary responsibility for the general FAX: (313) 446-034 7 administration, management, and proper operation of the Retirement Systems, and for BUSINESSES FOR SALE E-MAIL: cdbclassified @crain.com making effective their provisions, is vested in each Retirement System’s Board of Trustees. Call or email today for information INTERNET: The Retirement Systems provide services and benefits to approximately 9000 active WHITTEMORE, MI WOODSHOP on a custom advertising plan! www.crainsdetroit.com/section/classifieds members and 12,000 retirees and beneficiaries. Currently, combined Retirement System assets are in excess of $4 billion. Fully Equipped Millwork/Cabinet Shop See [email protected] Each Retirement System is comprised of two distinct plans: a legacy traditional defined 6888 Whittemore Rd, Whittemore, Mi Crainsdetroit.com/Section/Classifieds 313.446.6068 benefit plan and a new hybrid defined benefit plan. Information about each Retirement 20,000 sq ft - $225,000 for more classified advertisements System is available on the RSCD website at www.RSCD.org. Call Pete @ 989 239-3666 Please refer to the website for the full job description and benefits. Sahasa Realty Corp CRAIN’S CLASSIFIEDS WORK! To Place Your Ad Call (313) 446-6068 or Fax (313) 446-0347 Submit information for this job posting to: [email protected]

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Contact [email protected] • (212) 210- 0750 18 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017

Macy’s closed at Eastland Center in Harper Woods earlier this year, as part of a restructuring of the department store chain.

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said Ken Nisch, chairman of JGA, a and online throughout the shop- RETAIL brand strategy and retail design ping experience, according to a FROM PAGE 1 rm in Southeld. “at’s not un- 2014 study by A.T. Kearney. retail sales. common in business and the result “ey don’t need seas of people &RQWDFW0LNH6HPDQFRWRGD\ Jennifer Ward-Batts, an assistant will be structural changes, mostly eectively babysitting inventory,” (248) 658-1100 professor at Wayne State University positive ones for shoppers.” Nisch said. “is provides a with a specialty in labor and demo- Nisch and Gibbs join the fray of high-level sales interface with more KLWDFKLEXVLQHVVÀQDQFHFRP graphic economics, believes the re- experts that believe the mall envi- workers per square feet.” cent national decline in jobs is a cor- ronment, particularly rural and While this condensed retail envi- rection, or uctuation, from retailers suburban malls, will sunset sooner ronment naturally requires fewer that over-hired coming out of the than later. Not a single new en- employees, those in demand tend Great Recession thanks to bet- closed mall has been built in the to be higher-paid, Ward-Batts said. ter-than-expected consumer senti- U.S. in the past decade. “We’re getting rid of cashiers and ment. Gibbs said more than half of the gaining full-service salespeople,” “Retail trade as a whole is still nation’s indoor malls will close in Ward-Batts said. “is is raising ahead of pre-Recession gures,” the next few years as the depart- wages and helping our economy.” Ward-Batts said. “is appears to ment stores unravel, which could Retail sales employment rose me to be a leveling o or a correc- lead to signicant job losses. nearly 13 percent between May tion. I expect retail jobs to remain But those holes are likely to be 2012 and May 2016, according to steady for some time as we see pop- lled, at least partially, by a shift in the latest available data from the ulation gains even in a shifting retail demand, with stores looking Bureau of Labor Statistics. Cashier economy.” to move from the suburban malls to employment rose only marginally e retail anxiety is almost entire- more dense downtown locations, at 1.7 percent. e average hourly ly boiling out of the accelerating de- like Detroit, Royal Oak and Grosse wage in retail sales in Michigan was cline of department stores, which Pointe, Gibbs said. $12.54 in May 2016, compared with have been dismantled department is, however, is not expected to $10.53 for cashiers, according to by department for more than a de- harm the large, higher-end malls BLS data.Ward-Batts said popula- cade, said Robert Gibbs, a retail and like e Somerset Collection in tion growth in Michigan and rising urban planning expert who is the Troy and Twelve Oaks Mall in Novi, household income in Southeast managing principal of Birming- Nisch said. Michigan, particularly Oakland ham-based Gibbs Planning Group “Consumers will always choose County and Detroit, could lead Inc. Somerset over the Macomb Mall,” to more retail to support those ar- Locally, Macy’s Inc. closed stores Nisch said. “e modern consumer eas. at Westland and Eastland Center in wants a certain kind of shopping e rise of retail in Oakland Harper Woods earlier this year, put- trip and are willing to drive past one County and Detroit has led to the ting 227 people out of jobs. Sears to go to another in a more central- lowest retail vacancy rates since Holdings Inc. will close its Kmart ized location with restaurants, the- 2007, according to a recent retail in- stores in Plymouth, Roseville, Wa- aters, etc.” vestment forecast by California terford Township, Westland and Moving to downtowns puts re- commercial real estate rm Marcus Garden City. tailers near the in-demand restau- & Millichap. e forecast also ex- But these stores aren’t losing out- rants, oce buildings and housing. pects the opening of the QLine right to the internet, but to discount Nisch pointed to retailers like War- streetcar line and Little Caesars stores like T.J. Maxx, H&M and the by Parker and Bonobos, which both Arena to drive more retail invest- various cosmetics stores. recently opened in downtown De- ment into Detroit. “e store closures have been troit, as successful examples of the “People want to put on their dark overhyped this year,” Gibbs said future of retail — low-square foot- jeans, as my daughter says, to go “We’re at a tipping point with de- age, service-intensive environ- downtown to eat and shop,” said partment store closures, but it’s re- ments that also have an online com- Nisch. ally rightsizing for the market.” ponent. “It’s part of an experience, not Retailers are now faced with Both retailers serve customers just to stock up on socks. You can do complicated metrics for success, in-store, but ship actual products that online now. ere are always much like other industries, such as from their fulllment centers. Brick- winners and losers in retail ... and manufacturing, have become ac- and-mortar stores play a crucial right now the middle is a tough customed to. presence in online sales, as two- place to be ... and it’s not that the “What we’re seeing is the unpro- thirds of customers purchasing on- whole (retail) thing is deteriorating, ductive retail environments closing; line use a store before or after the it’s bifurcating. Just like jobs.” stores that were over-spaced and transaction, and 55 percent of con- Dustin Walsh: (313) 446-6042 deferred technology investments,” sumers prefer to use both stores Twitter: @dustinpwalsh CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 19

son Avenue, the DEQ’s Walczak said. A in Wyandotte, Trenton or Riverview is MCLOUTH passing motorcyclist subsequently that you’re kind of removed from FROM PAGE 1 slid and fell into the water. things. at’s part of its charm and at- o ce of Colliers International Inc. He suered caustic burns, Walczak traction,” he said. “But for business- who grew up in nearby Riverview. “It’s said. people, it just seems so far away from a toughy. I’m a betting man and I at was one of three incidents — the freeways and things of that nature.” wouldn’t touch that, even with your one, a re, and another, PCBs (poly- Others with rst-hand experience money.” chlorinated biphenyls) from contami- with the site think mixed-use redevel- e Michigan Department of Envi- nated electrical equipment leaking opment is likely out of the question. ronmental Quality and the U.S. Envi- into the ground — requiring emergen- “We looked at this site years ago ronmental Protection Agency are cy EPA response. ose three inci- when Wilkerson was involved,” said evaluating whether it should become dents helped trigger the site being Larry Goss, executive vice president of a Superfund site, said Jim Wagner, considered for the National Priorities Bingham Farms-based Core Partners Trenton’s city administrator. List, being placed on which qualies LLC. “Ultimately I think some form of Being given that designation would them for Superfund status. intermodal site probably is the best bring in federal resources for site In 2008-09, the EPA spent $2 million use. ere are much better mixed use cleanup and, at the same time, seek removing more than 3,700 PCB-con- sites these days to choose from.” reimbursement from those deemed taminated capacitors, almost 40,000 Brad Viergever, associate broker responsible for any pollution on it — KIRK PINHO/CRAIN’S DETROIT BUSINESS gallons of PCB oil and almost 1,900 and principal for Southeld-based which could make the task of trans- Local real estate experts believe the McLouth site is best suited for industrial use. containers of contaminated waste, ac- Signature Associates, has taken clients forming an environmentally di cult cording to the December 2014 DEQ through the site for possible redevel- property a little easier to swallow. If the state, city and county decline store and transfer bulk materials, the report. opment. Most were eying industrial “It can be a turn-o for developers, to purchase it, it would go to public July 2016 report says. use, he said. but it doesn’t have to be,” said Joseph auction — perhaps the normal Wagner says 19,000 tons of sugar Best use? CBRE’s Rogers agreed. Walczak, environmental quality spe- tax-foreclosure auctions held in Sep- cane sit in piles on the site, and a DEQ “It may be a great location for multi- cialist for the DEQ. “If there are devel- tember and October, or a special auc- report says other materials there in- Local real estate experts believe the family and mixed-use development, opers interested, the DEQ and EPA tion before those, Sabree said. clude steel, aluminum and salt. McLouth site is best suited for industri- but the cost to develop and clean it up will work with them.” “e goal of the city and the county al use rather than a complete transfor- may be prohibitive where you can’t get Regardless, redevelopment will be is to have a developer before an auc- EPA response mation into a mixed-use development. that price point back out of it,” he said. a monumental tion,” Sabree said. e trouble is nding the right user “And maybe that kicks you back into task. About two years ago, Colliers Inter- In 2009, contaminated groundwa- who doesn’t mind the location or the the industrial.” “Whether it’s national listed the site on behalf of De- ter from the Moroun-owned portion cleanup, said Roberts. Kirk Pinho: (313) 446-0412 the county, the troit Steel for sale for $42 million. of the site leaked out into West Jeer- “One of the nice things about living Twitter: @kirkpinhoCDB state or the city of Any redevelopment plan would be Trenton, now the latest in a long string of failed at- they are the dog tempts to revive the plant or bring an with proverbial entirely new use to the site. vehicle by the car In 2008, then-Mayor Gerald Brown bumper, holding said a New York investor had planned on and wonder- to invest hundreds of millions in the It’s Good Peter Rogers: ing what do they site. Richard Barr, a partner at De- Monumental task do,” said Peter troit-based Honigman Miller Schwartz for any entity. Rogers, vice pres- and Cohn LLP, represented the prop- to Be Flexible ident of investment brokerage in the erty owner, Michael Wilkinson, in the Southeld o ce of Los Angeles-based negotiations. Last week, Barr said he DoD you kknow off a company thatth t couldld use an CBRE Inc. hadn’t represented Wilkinson, who experienced equity partner, but doesn’t want to sell a bought the property in 1996 out of majority equity stake? Property foreclosure bankruptcy, in several years. ere was a plan in the mid 2000s to Do you know of a business owner that would like to On March 31, the county fore- transform the site into what was called buy out an inactive shareholder’s interest? Or bring closed on Detroit Steel Co. LLC, which “Bay Village of Trenton,” a massive on a partner with capital for growth, or make that long owns the site at West Jeerson and and ultimately failed plan to bring sought-after add-on acquisition? Sibley Road for unpaid property taxes 2,400 residential units, 600,000 square At Huron Capital, we do our best to be flexible. Our dating back to 2006, said Wayne feet of retail, 35 acres of green space Flex Equity solution can provide attractive non-control County Treasurer Eric Sabree. and a marina, the Michigan Economic solutions for owners seeking to diversify their estate, e entity, which is registered to Development Corp. said in a memo at secure growth capital, shore up their balance sheets or Michael Wilkinson, had payment the time. repurchase inactive shareholder interests. plans but had only paid taxes for a couple of the years since then, he said. Materials on site If the business owner would prefer to sell a majority With the foreclosure, the right-of- interest, we can do that too. It’s all about flexibility. rst-refusal process begins, with the When Detroit Steel purchased the county oering the property for sale to site and McLouth Steel’s assets during the state for its fair market value of its 1996 Chapter 11 bankruptcy case $4.65 million, Sabree said. If the state for $31 million plus $16.9 million to declines to buy it by a May 13 dead- creditors, it was about 273 acres and line, the county would oer it to the stretched across Trenton’s northern city for sale for the unpaid property border into Riverview, according to We invest in PEOPLE. taxes, less city taxes. DEQ reports from December 2014 and If the city declines, the county July 2016. would have the option to buy it, a de- en in 2000, Manuel “Matty” Mo- We build LEADERS. cision that would have to be made by roun’s Crown Enterprises Inc. pur- Executive Warren Evans’ administra- chased 76 acres on the north end of tion and the county commission, Sa- the site — 36 in Trenton and 40 in Riv- bree said. erview — from Detroit Steel. (A Khalil Rahal, the county economic spokesman for Moroun declined to development director, said he has re- comment on rumors that he was inter- Platform Criteria Sector Focus ceived interest in the property but de- ested in buying the foreclosed proper- Buy & Build Strategies Specialty Manufacturing clined to say from whom. ty now.) Revenues: Up to $200M Consumer Goods & Services “ere are a lot of development op- From 1954 to 1996, the property op- EBITDA: $5M or more Business Services portunities for the site,” Rahal said. “It erated as a steel mill, using blast fur- Equity Positions: 20%-100% has a deep water port. It has three rail naces, basic oxygen furnaces, electric lines that go through there, and is arc furnaces, a hot strip rolling mill, close to highways, the airport and the soaking pits and pickle lines, accord- international border. ere are only ing to a July 2016 DEQ inspection re- four ways to ship things — road, air, port. rail and sea — and it has proximity to Some of the building space is being 500 Griswold Street - Suite 2700 | Detroit, Michigan 48226 | 313-962-5800 | www.huroncapital.com all of those.” used as an intermodal terminal to 20 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017

However, Dom Pallone, executive “We have been dancing ing over state behavioral funding to HEALTH director of the Michigan Associa- Medicaid health plans can be ac- FROM PAGE 3 tion of Health Plans, said he wants around the concept of complished without loss of key ser- “We don’t want to compromise to ask legislators to tweak the nal integration far too long and vices and personal touch. the vulnerable, so we need to move language to allow for Medicaid Last week they sent a three-page slowly in the process,” said Can eld, health plans to solely manage the the Legislature needs to letter to legislators and state o- a family physician. integrated pilot program. force things to happen.” cials that warned of the dangers of “e statewide PIHP will con- “We also believe that a pilot that turning over funding to the HMOs. tract with the community mental removes nancial barriers to care Sen. Mike Shirkey, R-Clarklake ey called for legislators to focus health programs and their provid- by utilizing highly regulated health on the workgroup report and im- ers,” he said. “ere won’t be any plans can meet the core values pub- leau said. “It is very expensive now, present to Snyder in a budget, Mar- proving the current system. changes at the provider level.” lished in the 298 Facilitation Work- and costs are rising. We don't want leau and Can eld said it can be ac- “We know the (Medicaid health Willie Brooks, CEO of the Oak- group report,” Pallone said. the system to be more expensive complished because all parties plans) have been lobbying legisla- land County Community Mental Can eld said many of the details with the same results.” want to improve services and re- tors hard. If the Legislature ulti- Health Authority, said moving to a of the House boilerplate would have e single Medicaid health plan duce state costs. mately decides it wants to help statewide PIHP would be a disaster to be re ned by MDHHS before go- contracting model and health plan “We will have to sit down with these entities make more money at for vulnerable people served by ing into eect and referred ques- pilot projects were proposed in an the House, sta, the scal agencies the expense of our constituents, we mental health organizations be- tions to MDHHS sta. But ocials amendment by Sen. Mike Shirkey, and DHHS and go through the will do everything we can to pre- cause they would lose the bene ts with MDHHS, who would design R-Clarklake. It created a new boiler- whole thing,” Marleau said. “ere vent that,” Kevin Fischer, executive of local administrative control. the pilot, declined to comment last plate, Section 234, that calls for will be give and take and we will director of the National Alliance on “Just because you make it one week. MDHHS to develop Medicaid pilot come out with an agreement.” Mental Illness, Michigan, said in a entity doesn’t mean you reduce Meanwhile, the Senate MDHHS projects and a goal to fully turn over Despite disregarding most of the statement. anything. You still have to manage appropriations subcommittee ap- funding to Medicaid health plans by Section 298 Workgroup, which met Elmer Cerano, executive director functions and take on reporting and proved a new boilerplate and a re- 2020. last year to come up with a 91-page - of the Michigan Advocacy and Pro- contracting requirements,” said vised Section 298 boilerplate of “We have been dancing around nal report and a 500-page addendum tection Services, said legislators Brooks. “It’s a terrible idea to re- their own. e committee voted to the concept of integration far too to the legislature, the various compet- should prohibit the transfer of duce (the number of PIHPs), and continue improving the current sys- long and the Legislature needs to ing nancing models are seen as a Medicaid dollars to the health the people you serve are not having tem, but also develop an unspeci- force things to happen,” said legislative compromise with Medic- plans. their best interests considered.” ed number of Medicaid health Shirkey. aid health plans and the public be- “We are afraid that privatization e House budget also would ask plan pilot programs to integrate be- Bob Sheehan, havioral health service industry. and pro tization of Medicaid is real MDHHS to work havioral and physical health ser- CEO of the e House subcommittee also risky for people with disabilities,” with any willing vices and work toward a single con- Michigan Asso- ordered MDHHS to report on prog- Cerano said. community tracting model by Sept. 30, 2020. ciation of Com- ress made during the year by Med- Sheehan said community men- mental health Under the Senate plan, Michi- munity Mental icaid HMOs and mental health or- tal health agencies have been com- agency and gan’s 11 Medicaid HMOs could Health Boards, ganizations in improving care prehensively improving integration Medicaid health eventually manage both the state's said he is disap- coordination for patients with of behavioral and physical health plan that oper- $9 billion physical health and $2.6 pointed with the mental illness, developmental dis- services at the patient level the past ates in Kent billion behavioral health system. votes of the abilities and substance abuse prob- two years and should be given more County to test a Future state Legislatures would committees and lems. resources to continue their mis- full physical and have to approve any nal reform plans to contin- All Senate and House proposals sion.

behavioral inte- plan. Bob Sheehan: ue to press the would follow the 18 core values for “I need to remind people that we Disappointed with Dom Pallone: A grated care plan. HHS Subcommittee Chairman case that Medic- patient services established last are at the beginning of a discus- votes. pilot removes Under that Jim Marleau, R-Lake Orion, said he aid HMOs year by the Section 298 Workgroup. sion,” Can eld said. “We haven’t barriers. plan, the local supports Medicaid health plan pi- should not take ose include person-centered really approved anything, and the mental health lots to integrate physical and behav- over the entire Medicaid system. planning, self-determination and governor hasn’t signed anything agency and one or more Medicaid ioral health. On reaching consensus on re- community inclusion. into law.” HMOs would join forces to manage “We need a pilot to see how it vised House and Senate Section 298 But 14 mental health advocacy Jay Greene: (313) 446-0325 Medicaid patients in that market. works with mind and body,” Mar- and Section 234 boilerplates to organizations disagreed that turn- Twitter: @jaybgreene

JEWELER ALIBABA Jack Ma has also FROM PAGE 3 FROM PAGE 3 said he plans to Yet U.S. tech companies are aware use Alibaba to iconic blue neon sign, celebrated its of Alibaba’s presence. Jerry Wang, a recent renovations with an open co-founder of Yahoo Inc., serves on connect U.S. house last week for longtime cus- Alibaba’s board and Yahoo has a $40 manufacturers tomers to see the restorations. billion stake in the company, Fortune Michael Simmons’ 92-year-old fa- reported in March. with Chinese ther, George, who still works in the Earlier this year, Ma wrote in a Wall suppliers. store occasionally, was on hand for Street Journal op-ed that Alibaba the festivities. would enroll 1 million U.S. small busi- crative business connection for de- e renovated store no longer has nesses to its various e-commerce plat- cades. Major Michigan companies al- a drop ceiling. e tall ceilings now forms, primarily on its Taobao and ready operate in China, such as Ford display three circular chandeliers Tmall websites. e company claims Motor Co., General Motors Co., Dow displaying original Simmons and its hosts 10 million merchants in Chi- Chemical Co., Whirlpool Corp., Clark Jewelers newspaper advertise- na that employ 30 million people. BorgWarner Inc., Key Safety Systems ments from the 1930s and 1940s. In January, Ant Financial Services Inc., among others. China’s Shanghai George Simmons’ father, Fred, Group, the payment aliate of Aliba- Automotive Industry Corp., Aviation started the jewelry store with ba, announced it would buy Dal- Industry Corp. of China, Fuyao Auto co-founder Harry Clark on Oct. 1, las-based money-transfer company Glass, Wanxiang Group and others 1925, in a building next door to the MoneyGram International Inc. for own several Michigan auto compa- current store they’ve been in since roughly $880 million. nies. 1934. Ma has also said he plans to use Al- e agriculture event could serve Fred Simmons and Harry Clark ibaba to connect U.S. manufacturers as a litmus test for Alibaba’s reception were pioneers in selling jewelry on with Chinese suppliers, Fortune re- in the area with the Chinese compa- credit. ported. ny returning to the region to expand “It’s where it actually started — in China and Michigan have had a lu- on those relationships. Detroit, buying jewelry on credit,” Michael Simmons said. BANKRUPTCIES Staying in business for 92 years hasn’t been easy. e following business led for J NS Private Equity I, LLC, 7071 Or- “Dad would term it ‘the great roll- bankruptcy protection in U.S. Bank- chard Lake Road, Suite 250, West er coaster ride,’” Simmons said. “And CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS ruptcy Court in Detroit April 13-20. Bloom eld Township, voluntary we’re very conservative in what we An iconic blue neon sign marks the front of the Simmons and Clark Jewelers store in Under Chapter 11, a company les Chapter 11. Assets and liabilities are d o.” Detroit. for reorganization. not available. 8,000 JOBS ENDLESS POSSIBILITIES Grow Detroit’s Young Talent (GDYT) is a 6-week summer youth employment program that combines work readiness training with on the job experience designed to prepare 8,000 Detroit youth, ages 14-24, for Detroit’s workforce.

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RESERVATIONS DUE: MAY 5 | PRINT DATE: JUNE 5 For details and rates contact us at [email protected] or (313)446-0455 22 CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 Budget proposal includes spending cuts, www.crainsdetroit.com Editor-in-Chief Keith E. Crain Executive Vice President KC Crain making room for tax cut or debt payments Publisher/Editor Ron Fournier, (313) 446-1674 or [email protected] By Lindsay VanHulle Care Act eventually is repealed, within the talent department. ey frastructure and paying down debt. Group Publisher Mary Kramer, (313) 446-0399 Crain’s Detroit Business/Bridge Magazine Michigan will receive less funding include $25.9 million for the Going e latter could include addressing or [email protected] Managing Editor Michael Lee, (313) 446-1630 LANSING — Republican leaders from the federal government for Pro campaign, formerly known as the state’s unfunded retirement ob- or [email protected] in the House and Senate are propos- health programs. Uncertainty lingers the Skilled Trades Training Program, ligations. Director, Crain Custom Content Kristin Bull, ing to spend more than $270 million over the federal health care law after which administers training pro- No consensus has emerged, (313) 446-1608 or [email protected] Product Manager/Marketing and Events Kim Winkler, less from Michigan’s general fund on the House GOP majority in Washing- grams to companies; and $22.7 mil- Meekhof said, though his prefer- (313) 446-6764 or [email protected] state programs and services next ton couldn’t get enough support for lion for the unemployment agency, ence would be to address debt. Digital Product Manager Carlos Portocarrero, (313) 446-6056 or [email protected] year than Gov. Rick Snyder, as legis- a replacement bill. according to the state budget oce. “I think more and more that they Membership Director Nancy Hanus, (313) 446-1621 lators consider revisiting an income “If we get (Medicaid) block grants A House budget subcommittee understand the smart policy of pay- or [email protected] tax cut or paying down debt. (in 2018), we will have to balance the agreed with Snyder’s proposal to in- ing down debt so you have more Creative Director David Kordalski, (216) 771-5169 or [email protected] Budget subcommittees in both budget with far more cuts in pro- crease funding for the Going Pro money to invest in infrastructure, News Editor Beth Reeber Valone, (313) 446-5875 chambers have approved depart- grams than we are doing now,” he program by $10 million in one-time you have more money to invest in or [email protected] ment spending plans that reduce said. “It is more prudent to just not funds — bringing the total amount to education,” he said. Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or [email protected] funding for some of Snyder’s propos- fund increases in programs now.” $40.9 million — but would budget As for an income tax cut, Meek- Design and Copy Editor Beth Jachman, (313) 446-0356 als — including in health care and Sen. Curtis Hertel Jr., a Democrat the entire program from the Contin- hof said: “Speaker Leonard’s talked or [email protected] economic development — and shift from Ingham County’s Meridian gent Fund, according to the nonpar- about it a little bit. We have not.” Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] funding for others out of the state’s Township, called attempts at cutting tisan House Fiscal Agency. e D’Assandro said the spending re- Newsroom (313) 446-0329, FAX (313) 446-1687, roughly $10 billion general fund for Michigan’s income tax “a complete House also would move the entire duction targets are a goal of House TIP LINE (313) 446-6766 the scal year that starts Oct. 1. political gimmick” and said it $9.8 million Community Ventures Republicans to pare back spending REPORTERS Building room into the budget shouldn’t be used as a reason to program, which helps the long-term to force government to operate Tyler Cliord, breaking news. (313) 446-1612 or could put a plan to roll back the slash funding for health and human unemployed who live in four qualify- more eciently, not necessarily tcli[email protected] Annalise Frank, breaking news. (313) 446-0416 or state’s 4.25 percent income tax back services, in particular. ing cities nd work, from the general tied to an income tax cut. [email protected] in play. Favored by House Speaker “I’m very concerned about this fund to the Contingent Fund. Amber McCann, a spokeswom- Jay Greene, senior reporter Covers health care. Tom Leonard, the House in February idea that the House and Senate are e Senate would fund $5 million an for Meekhof, said the spending (313) 446-0325 or [email protected] Chad Livengood Covers Detroit rising. (313) 446-1654 or failed to secure enough votes to cut trying to make cuts in vital programs of the Going Pro program from the targets are to create exibility in [email protected] the state’s income tax rate to 3.9 per- to try to justify a tax decrease that will penalty and interest money. e budgeting, in part because the state Kurt Nagl Breaking news. (313) 446-0337 or cent by 2021 over concerns about do almost nothing for the average House Fiscal Agency estimated the will hold a second revenue estimat- [email protected] Kirk Pinho Covers real estate. (313) 446-0412 or potential revenue implications. citizen,” he said. “(It) deinvests in the Contingent Fund would have a bal- ing conference in May to determine [email protected] “We’d still love to talk about it. places where we need to make in- ance of $148.7 million by the end of whether revenue is on track with Bill Shea, enterprise editor Covers the business at’s still a priority for this caucus,” vestments right now.” this scal year in September. earlier estimates. of sports. (313) 446-1626 or [email protected] Lindsay VanHulle Lansing reporter. (517) 657-2204 said Gideon D’Assandro, a spokes- or [email protected] man for Leonard, of a proposed in- Snyder’s proposal “I’m very Health reductions Dustin Walsh, senior reporter Covers economic issues. come tax cut. “e speaker has said (313) 446-6042 or [email protected] concerned about Sherri Welch, senior reporter Covers nonprots and the whole time that he’d be willing to One way the administration and Among business-related pro- philanthropy. (313) 446-1694 or [email protected] come back to it and talk about it in legislative leaders have proposed re- this idea that the grams, a House budget subcom- ADVERTISING concert with the budget, because ducing general-fund spending is to House and Senate mittee approved a spending plan Sales Inquiries (313) 446-6032; FAX (313) 393-0997 some members would like to do it use money from a fund that contains for the talent and economic devel- Director of Sales Lisa Rudy that way.” penalties paid by people accused of are trying to make opment department that would use Senior Account Manager Katie Sullivan Advertising Sales Gerry Golinske, Sharon Mulroy, e Michigan Department of unemployment insurance fraud for cuts in vital $62.5 million less from the state’s Diane Owen Health and Human Services, which some economic development pro- general fund than Snyder pro- Classied Sales Manager Angela Schutte, makes up nearly half of total state grams. programs to try to posed. e Senate would slightly (313) 446-6051 Classied Sales Lynn Calcaterra, (313) 446-6086 spending, would see the largest im- e move, while allowed under justify a tax increase general-fund spending for Events Manager Kacey Anderson pact from some of the Legislature’s state law, is also controversial. e the department, though both Marketing and Sales Promotions Manager proposed reductions. e House and state remains tied up in a scandal in- decrease that will chambers want to eliminate the Christina Fabugais-Dimovska Senior Art Director Sylvia Kolaski Senate proposed signi cantly lower volving the Unemployment Insur- do almost nothing governor’s proposal to expand a Special Projects Coordinator Keenan Covington general-fund spending on health ance Agency, which relied on a com- for the average program, called Rising Tide, that Sales Support Suzanne Janik programs than Snyder did — roughly puter to decide fraudulent claims helps at-risk communities with re- Media Services Director Geof Innis Media Services Manager Hussein Abdallah $120 million and $112 million, re- and wound up wrongly accusing po- citizen.” development. spectively, below the governor’s rec- tentially thousands of people of ben- Sen. Curtis Hertel Jr. e House also eliminated Sny- CUSTOMER SERVICE Main Number: Call (877) 824-9374 ommendation. e ts fraud, and advocates for claim- der’s recommendation to invest $5 or [email protected] Leaders of the House and Senate’s ants believe the state shouldn’t Yet a judge could force the state million in one-time funding for a Subscriptions $59 one year, $98 two years. Out of state, health budget panels — Rep. Edward spend a dime of the penalties and to repay plaintis and unemploy- marketing program to attract talent $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state rate for surface mail. Call (313) “Ned” Can eld, R-Sebewaing, and interest fund until all cases are re- ment bene ts claimants if it’s de- to Michigan, while the Senate shift- 446-0450 or (877) 824-9374. Sen. Jim Marleau, R-Lake Orion, reviewed and people repaid. termined that the state is at fault. ed the marketing program under Single Copies (877) 824-9374 spectively — both told Crain’s that e Unemployment Insurance “We’ll have to fund it if damages the umbrella of the state’s Pure Reprints (212) 210-0750; or Krista Bora at [email protected] they were given budget targets by Agency is a defendant in ve lawsuits are awarded,” D’Assandro said, Michigan tourism campaign. To nd a date a story was published (313) 446-0406 legislative leaders. related to its procedures, spokesman adding that House Republicans On the health side, general-fund or e-mail [email protected] Marleau said he hopes to per- Dave Murray said, including a po- don’t believe a judgment is likely budget reductions include such ar- Crain’s Detroit Business is published by suade leaders to reinstate some of tential class-action case. e unem- this year. “At this point, the money eas as direct care provider wages, Crain Communications Inc. the $112 million in budget reduc- ployment oce came under re for was going to sit there until the next sta for state psychiatric hospitals Chairman Keith E. Crain tions, especially a 50-cent-per-hour relying on a software program to ag budget,” prompting interest in and autism services. President Rance Crain Treasurer Mary Kay Crain direct care worker pay raise and a $7 fraudulent bene ts claims without spending on programs. e early budget proposals will Senior Executive Vice President William A. Morrow million program that gives food and review from a live person. Senate Majority Leader Arlan now be worked out in both cham- Executive Vice President/Director of Strategic heat assistance to poor residents, e state’s Talent Investment Meekhof told reporters last week bers over the next few months. Operations Chris Crain Executive Vice President/Director of Corporate which the House agreed to fund. Agency, housed within the Michigan that Republicans in his chamber Crain’s Detroit Business reporter Operations KC Crain He said the Legislature wants to Department of Talent and Economic are leaning toward a few interests, Jay Greene contributed to this re- Vice President/Production & Manufacturing have some exibility to fund addi- Development with authority over including tax cuts, investing in in- port. Dave Kamis Chief Financial Ocer Bob Recchia tional or emergency programs later the unemployment oce, has since Chief Information Ocer Anthony DiPonio in the budget cycle, though he ac- returned to having a person review G.D. Crain Jr. Founder (1885-1973) knowledged that some legislators the computer’s ndings. Mrs. G.D. Crain Jr. Chairman (1911-1996) INDEX TO COMPANIES Editorial & Business Oces want to use budget savings to reduce e state has committed to re- These companies have signicant mention in this week’s Crain’s Detroit Business: 1155 Gratiot Ave., Detroit MI 48207-2732; the state’s long term debt and fund a viewing all fraud allegations between (313) 446-6000 state income tax cut. October 2013 and August 2015 that Alibaba Group Holding Ltd. 3 National Kidney Foundation of MI 6 Cable address: TWX 248-221-5122 AUTNEW DET “I don’t know what we will do. A were determined by the computer. Banyan Investments LLC 7 Oakland University 16 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI tax decrease is one of them,” said Snyder, a Republican, released his Eastland Center 1 Pinnacle Homes of Michigan LLC 16 48207-2732. Periodicals postage paid at Detroit, MI and additional Marleau, adding that “leadership budget proposal in February that mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S Eli Broad College of Business 10 Richmond Brothers 4 DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, didn’t tell me why they want lower would use the same amount of fund- MI 48207-9732. GST # 136760444. Printed in U.S.A. budget targets.” ing from the penalty and interest ac- Macy’s 1 Rockwell Medical Inc. 4 Contents copyright 2017 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner Can eld said the HHS budget count within what is known as the Michigan Associated of United Ways 15 Simmons and Clark Jewelers 3 without permission is prohibited. should include savings because he Contingent Fund as in the current Mike Ilitch School of Business 11 Stephen Ross School of Business 10, 15 believes if the federal Aordable scal year for two speci c programs CRAIN’S DETROIT BUSINESS // APRIL 24, 2017 23 THE WEEK ON THE WEB RUMBLINGS APRIL 15-21 | For more, visit crainsdetroit.com Retired Justice Young Little Caesars based Realcomp Ltd. II said in a new Detroit report comparing March sales num- courted for Senate run Arena, metro bers to March 2016. Digits J Cleary University in Livingston etired state Supreme Court Jus- would be such interest in my future,” Detroit to host County has been accepted as a tice Robert Young Jr. is being Young said in a statement. "As when I A numbers-focused look at last member of the National Association Rcourted to run for the U.S. Senate in was placed on the president’s Su- NCAA events week's headlines. of Intercollegiate Athletics, eective 2018 to take on incumbent Democrat- preme Court list, the encouragement Aug. 1. ic Sen. Debbie Stabenow. for me to run for some other oce is ittle Caesars Arena will host the J Single match tickets for Detroit “I think he’s thinking about it. I attering.” 2020 Frozen Four men’s ice $4 billion City Football Club went on sale last know a lot of people are talking to him e prospect of Young’s potential Lhockey tournament, one of seven The Victors for Michigan week for 11 home games at Key- about,” said Ron Weiser, chairman of candidacy comes as Republicans are NCAA championship events award- fundraising campaign goal that worth Stadium in Hamtramck. the Michigan Re- searching for a viable challenger to try ed to Detroit, the association an- the University of Michigan publican Party. to unseat Stabenow, a three-term in- nounced last week. surpassed more than a year and a Other news: Young an- cumbent who reported $4.3 million in “We would have been pleased half ahead of its target to do so. nounced last campaign cash on hand at the end of with three,” Detroit Sports Commis- J Wayne County has granted Chica- month he would March. sion director Kris Smith said in a go-based Walsh Construction a two- retire after 18 Some Republicans have been try- conference call Tuesday. “Four or 5 week extension on its May 3 dead- years on the ing to get U.S. Rep. Fred Upton of St. The number of nationally ve and we’d have been sitting in line for submitting a proposal to state's highest Joseph to challenge Stabenow, who televised games the Detroit Lions dreamland. Seven ... was just wow. It restart construction of the jail on court and return has been a bipartisan ally of his at will get in 2017 to showcase their speaks to the fact that this communi- Gratiot Avenue to come up with a to private law times over the years. brand. ty is strong.” smaller 1,600-bed alternative plan. practice at the “ose are the only two names I Robert Young Jr. Smith said it's important for the J e Detroit public schools’ board Dickinson hear on a consistent basis,” GOP con- city to get in the regular rotation for has selected Nikolai Vitti, a Detroit Wright law rm. His last day was April sultant Stu Sandler said of Young and hosting the Frozen Four because 3.1% native who is now superintendent of 17, a Supreme Court spokesman said. Upton. Sandler is co-founder of the The tuition hike the Macomb “this is Hockeytown, and we have a the Duval County, Fla., schools, as its He spent the past six years as chief Lansing-based Grand River Strategies Community College board approved very strong hockey pedigree here.” choice to become the district’s new justice of the Supreme Court and was political consulting rm and said he for the 2017-18 school year. He said the dierent men's and superintendent. seen as a steady leader after years of hasn’t talked to Young directly about women’s NCAA sports being hosted J Boyer Park on Detroit’s southwest acrimony among some of justices on the Senate race. in metro Detroit — hockey, basket- side was among the rst 10 to be im- the high court. Last year, then-candi- Republican strategist John Yob, ball, golf, wrestling, fencing, bowling J Detroit City Football Club named proved under the two-year 40 Neigh- date Donald Trump oated Young's owner of the Grand Rapids-based — represent the diversity of the com- Detroit-based Alternatives For Girls borhood Parks program launched name as a jurist he'd consider nomi- Strategic National consulting firm, munity. He said the events will bring as its 2017 charity partner. e fund- last spring. nating for the U.S. Supreme Court if sees Young as a “formidable candi- exposure to the area and have a posi- raiser game is June 23 against Ka- J Detroit’s Board of Water Commis- elected president. date” who could put together a win- tive economic impact. lamazoo FC. sioners voted to slash a $750-per- Young, a native of Detroit, con- ning coalition. e Detroit Sports Commission in J Penn Station East Coast Subs, acre monthly drainage fee to $125 for rmed Friday he's being courted to Aside from Young, Weiser said August submitted 54 applications to which wants to open 38 more stores businesses, churches and other run. there are other Republicans consider- bring 15 college championships in in metro Detroit over the next ve property owners following months “I never imagined when I decided ing a Senate campaign, but he de- nine sports to the region in coming years, is oering new franchisees a of outcry over the charges. it was time to leave the court that there clined to identify them. years, including NCAA basketball, year free of paying royalties to help J Henry Ford College President hockey, wrestling and football across drive that expansion. Stanley Jensen, who headed up a dierent divisions. J Automation Alley, a Troy-based cost-saving eort that brought the The nonprofit commission, in manufacturing and technology busi- school out of a $16 million budget charge of seeking amateur and col- ness association, is launching a de cit, will retire from his post eec- lege events for the area, teamed with cross-discipline conference called tive June 30, 2018. the University of Detroit Mercy, Oak- Integr8 scheduled for Nov. 9 in J The Kresge Foundation an- land University, the University of Detroit. nounced it has awarded $2 million to Michigan, Michigan State Universi- J Detroit-based Xenith LLC will be 17 new projects aimed at revitalizing ty, Wayne State University, Adrian the exclusive helmet provider for Ri- Detroit neighborhoods. It’s the third College, Olympia Entertainment, the vals Professional Football League and nal round of the foundation's Detroit Red Wings and Detroit Lions. athletes, the Detroit-based develop- $5 million Kresge Innovative Proj- DETROIT FITNESS FOUNDATION ment league announced. ects: Detroit initiative launched A rendering of the to-be-built velodrome at Detroit’s Tolan Playeld. Business news: J Veteran TV news anchor Carmen three years ago. Harlan, who retired last fall after J A newly released disclosure nearly 40 years on Detroit NBC ali- Obituary: Velodrome to host track showed that several prominent ate WDIV-Channel 4, will be the Michigan companies and business- voice of on-board announcements J Patricia Serwach, a McLaren Health people made donations to help for M-1 Rail’s QLine streetcar to Care executive and founder and pub- championships in 2017, ’18 bankroll President Donald Trumps debut May 12. lisher of the defunct Heritage: A Jour- he to-be-built indoor cycling the 64,000-square-foot facility, inauguration, including Mid- J e dearth of available homes and nal of Grosse Pointe Life, died urs- velodrome at Detroit’s Tolan which will include the cycling track land-based Dow Chemical Co., De- condominiums for sale in metro De- day at her home near Moran in the TPlay eld will host USA Cycling men’s and separate recreation elds inside troit’s Quicken Loans Inc. and Ford troit continues to push median sale Upper Peninsula of complications and women’s U.S. National Track an air dome, was granted ursday, Motor Co. prices higher, Farmington Hills- from cancer. She was 68. Championships in 2017 and 2018. Hughes said. Work will begin this J e popular Dearborn costume The three days of cycling are week, and the opening is scheduled and theatrical supply shop Lynch's scheduled for Oct. 19-21. Next year’s for September. e general contrac- will close in June, after third-genera- dates have not yet been set, said Dale tor is Wixom-based Quadrants De- tion owner Patrick Lynch and his Hughes, the velodrome’s developer velopment LLC and Guelph, Ontar- wife Susan decided to sell the build- and organizer of the nonpro t De- io-based Farley Group is the air ing and retire. troit Fitness Foundation that’s work- dome provider. J Longtime Detroit sports radio per- ing in collaboration with the city to Hughes said he’s seeking an inter- sonality Terry Foster, a former De- create the privately-funded $4 mil- national company to buy the naming troit News columnist who suered a lion multisport building. rights for the facility. stroke last year, said that he's imme- Ticket prices for the champion- The city announced the velo- diately retiring from his co-hosting ships have not yet been set. e facil- drome project in January as part of gig at WXYT-FM 97.1’s highly rated ity will have just under 1,000 seats, its planned improvements to Tolan afternoon sports talk show. and Hughes said most of the audi- Play eld at I-75 and Mack Avenue. J Sacred Heart Major Seminary is ence will come from livestreaming. e dome also will have indoor lanes demolishing a blighted apartment e races are what is known as a for running, walking and skating, building as part of a planned campus madison tournament, which is and a multipurpose in eld. e park expansion with parking and land- TYLER CLIFFORD/CRAIN’S DETROIT BUSINESS two-rider relay team in a eld of 20 to will get a playground, picnic space, a scaping on a 2½ acres it bought from The Press Room Café has opened in the former Detroit News building at 615 W. 30 teams. skateboard ramp and horseshoe the city of Detroit. Lafayette Blvd. with food stalls from celebrity chef Fabio Viviani of “Top Chef” fame. e construction permit to build pits.