Without an RTA Tax, Who Pays for M-1 Rail? by Bill Shea Current Funding, Planned Mal Statement to Crain’S on Wednes- [email protected] Day

Without an RTA Tax, Who Pays for M-1 Rail? by Bill Shea Current Funding, Planned Mal Statement to Crain’S on Wednes- Bshea@Crain.Com Day

2941 Street Food plots expansion for its fast Mediterranean food, Page 3 SEPTEMBER 26 - OCTOBER 2, 2016 Without an RTA tax, who pays for M-1 Rail? By Bill Shea Current funding, planned mal statement to Crain’s on Wednes- [email protected] day. A big question faces backers of the reserves intended to cover If local transit advocates are right, M-1 Rail streetcar system on Detroit’s worrying about a doomsday funding Woodward Avenue if the four-county until 2027 scenario for the streetcar line is point- transit tax on the Nov. 8 ballot fails and less because voters will OK the Region- continues to be rejected by voters in ger fares and revenue such as advertis- al Transit Authority of Southeast future elections. ing and group sales. Michigan’s 20-year, $3 billion tax pro- Who pays for it? “Should the need to operate and posal that’s primarily aimed at creat- Apparently, everyone who’s paying fund the system beyond our current ing new and better bus service in for it already, because M-1 really commitment arise, we would contin- Wayne, Oakland, Macomb and doesn’t have a Plan B. Instead, it says it ue to raise the funds necessary for op- Washtenaw counties. It’s also intended would do what it’s doing now, and will eration from a combination of fare box to pick up M-1’s annual operating for the next decade: Raise money from collections, partner support and ad- costs beginning in 2027, when the RTA donors and rely on cash from passen- vertising revenue,” M-1 said in a for- SEE RTA, PAGE 48

Lawsuits unlikely DETROIT 2.0: HOMECOMING OUTCOMES & OUTLOOKS to stall OT rules Message to biz: Be ready for Dec. 1 implementation Bringing it home By Dustin Walsh Detroit Homecoming has completed its third year. In our special Detroit 2.0 [email protected] The rules section, we look at where it all started, the outcomes and outlooks it has For Brogan & Partners Convergence In response to the new U.S. Marketing Inc., new federal overtime Department of Labor overtime rules, generated and where it goes from here. The section starts on Page 11. pay rules mean its new associates may businesses can: lose out on valuable experience.  e Birmingham-based advertis- Raise workers’ annual salary above ing agency will be forced to limit the the $47,500 exemption threshold. hours of just-out-of-college associates  Pay time-and-a-half for overtime who otherwise would put in more performed by workers below the hours to learn the ropes of the indus- threshold. try, said Ellyn Davidson, managing  Limit employees’ work to 40 hours partner. per week. “When you rst enter the workforce, you want to do things that fur-  Some combination of the above. ther your career that might require you  Those making $134,004 or more working more than 40 hours a week,” are exempt from the rule. Davidson said. “In advertising, we might have a young person come to a challenges face an uphill battle, ac- TV shoot for the day or focus group in cording to experts. the evening as a learning experience. e message to businesses: Be Now, it brings up an issue for compa- ready for Dec. 1, when the new rule is nies like mine that have to make a - scheduled to take e ect. nancial decision on that experience e rule requires employers to pay for them.” overtime to salaried workers earning e only hope for Brogan & Part- less than $47,500 a year, doubling the ners, and many others, rests with two current standard of $23,660 set in lawsuits led last week challenging the 2004. A suit led in U.S. District Court U.S. Department of Labor’s ruling to in Texas by Michigan and 20 other expand mandatory overtime pay to states says that the overtime rule, in more than 4 million workers. But those SEE OVERTIME, PAGE 46

© Entire contents copyright 2016 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 32 No 39 $2 a copy. $59 a year. Will Adler’s Will Leather Wendy Hilliard’s IPod creator Tony Fadell Goods stitches together gymnastics program eyes says Detroit needs culture neighborhood impact, fairgrounds for permanent change — and that’s tough Page 15 location, Page 24 work, Page 33

WENDY HILLIARD PHOTO BY CHRIS EHRMANN; OTHERS BY AARON ECKELS/CRAIN’S DETROIT BUSINESS NEWSPAPER In the background photo, Detroit Homecoming attendees listen to Dan Gilbert chat with former Microso Corp. CEO Steve Ballmer in the Brewster Wheeler Rec Center, which got a special permit to open for the event. 2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 Palo Alto, Calif.-based electric vehicle northern areas of the state, will close in MICHIGAN maker calls the “Anti-Tesla amend- mid-December. Sears Holdings Corp., INSIDE ment” in the lawsuit, was cited in the the Illinois-based parent of Kmart and THIS ISSUE rejection of the electric vehicle mak- Sears, said it will close stores in Alpena, BANKRUPTCIES ...... 7 er’s application for a state dealership Byron Center, Fenton, Grand Rapids, CALENDAR ...... 44 license earlier this month. Jackson, Manistee and Sault Ste. Marie. CLASSIFIED ADS ...... 45 DEALS & DETAILS ...... 46 n A Michigan House committee ad- n Renue Physical Therapy, a Bay vanced four bills that would regulate City-based company with eight outpa- KEITH CRAIN...... 8 MARY KRAMER ...... 14 BRIEFS the state’s developing autonomous ve- tient clinics in Bay, Arenac and Sagi- OPINION ...... 8 hicle industry, with changes designed naw counties, was named to Inc. mag- Varsity News Network Snyder signs medical OTHER VOICES ...... 8 to satisfy concerns about exclusions azine’s latest list of America’s 5,000 gets entrepreneurial boost marijuana bills into law PEOPLE ...... 44 raised by tech giant Google Inc. e fastest-growing private companies. RUMBLINGS ...... 50 A Grand Rapids-based company Gov. Rick Snyder has signed into House communications and technolo- Ranked at No. 1,025, Renue was cited WEEK ON THE WEB ...... 50 that provides high schools with their law new marijuana regulations that he gy committee unanimously voted to for 387 percent growth over the past own sports websites and its co-found- says clarify Michigan’s 8-year-old vot- send Senate Bills 995-98 to the House three years for a 2015 revenue of er were recently named an Endeavor er-approved initiative that legalized oor. e legislation cleared the Senate $3.2 million. Founded in 2011, Renue COMPANY INDEX: entrepreneur, a designation that gives the drug for medical use. He said the earlier. e bills would allow a comput- has 43 employees. e Inc. list is at SEE PAGE 49 it access to professional services and legislation will implement a “solid er system to serve as a vehicle’s driver www.inc.com/inc5000/list/2016. resources to further its growth. framework” giving patients a safe way when active and allow driverless cars n Grand Rapids Community Col- and include a bocce ball court. Ryan Vaughn and his Varsity News to buy marijuana, AP reported. on Michigan roads for any reason, not lege last week was to open Fountain n If it’s September, it must be time Network were chosen at the 66th En- e laws impose a new tax on dis- only while being tested. e legislation Hill Brewery, which it said is the only for Grand Rapids’ ArtPrize competi- deavor International Selection Panel pensary shops and establish a state li- also would authorize the planned federally and state-licensed brewpub tion, in which works by more than 1,400 in Boston. He is one of 34 entrepre- censing system to grow, process, sell, American Center for Mobility at Wil- on a campus that’s owned and operat- artists are on display, $500,000 in cash neurs representing 18 companies and transport or test marijuana. Nonsmok- low Run in Ypsilanti Township. ed by a college, the Grand Rapids Busi- prizes will be awarded, and the region 12 countries that were selected at the able forms of the drug such as lotions n e House voted overwhelming- ness Journal reported. e downtown gets a big tourism boost. In the eighth ISP. Endeavor is a New York City-based and tinctures will become legal. A ly to subject Michigan’s governor and brewery and the newly opened Peter’s annual event, which began last week nonpro t that helps support compa- monitoring system will track marijua- lawmakers to public records requests, Pub nearby are intended for students and runs through Oct. 9, the public will nies on the brink of rapid growth. na from “seed to sale,” and Snyder said passing legislation that gained mo- in GRCC’s new craft brewing, packag- vote on favorite entries using mobile So far, 1,700 U.S. high schools and municipalities can regulate the loca- mentum after Flint’s water crisis and a ing and service operations certi cate devices and the event website, AP re- 400 middle schools in 42 states use tion and number of marijuana busi- sex scandal that forced two legislators program to gain hands-on experience. ported. More details are at artprize.org. VNN, which was founded in 2012 by nesses in their communities. from oce, AP reported. It is the rst n World travels are a thing of the n Engineers are using the Macki- Vaughn and Matthew Anderson and e laws will take eect in 90 days. time such bills appear to have cleared past for a red steel shipping container nac Bridge to test a new type of sensor has 75 employees. People wanting state operating licens- a legislative chamber since passage of deposited behind the Søvengård that will monitor how the nearly Endeavor opened an oce in De- es can begin applying in late 2017. the Freedom of Information Act 40 restaurant in Grand Rapids last week, 5-mile-long structure linking Michi- troit in 2015 and also has oces in Mi- years ago. e 1976 law explicitly ex- MLive.com reported. e shipping gan’s two peninsulas is coping with its ami and Louisville, Ky. Previous metro MICH-CELLANEOUS empts the governor’s oce from re- container will become the new out- trac load, AP reported. Professors Detroit Endeavor entrepreneurs were n Tesla Motors Inc. is suing Michi- cords requests, and a 1986 opinion by door bar for a beer garden next to the from Michigan State University and Detroit-based McClure’s Pickles, gan in federal court over the state’s the state attorney general said legisla- Scandinavian-inspired restaurant. Washington University in St. Louis Plymouth-based Algal Scientic Corp. 2014 law banning the direct sales of tors intended to exclude themselves. e beer garden, with seating for 124, placed six prototype sensors beneath and Detroit-based Banza LLC. vehicles to consumers, Automotive n Seven Kmart stores in Michigan, will be located on the western half of the bridge last week; more sensors Marti Benedetti News reported. e law, which the most of them on the west side and two vacant lots behind the building may be installed next year.

“You want that patient to feel like you’re there for them and just them. It’s not about you treating their disease, it’s about you treating the patient who just happens to have a condition.”

Dr. Saroj Misra, Family Practice

Michigan, we’re listening. You want even more compassionate care. That’s why we’re coming together as Ascension®. So we can give healthcare a better name.

We are Ascension.

ascension.org/michigan CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 3 Brown eld DMC gives bills raise state plan questions to address of revenue violations Biz, government debate Outline includes value of tax captures plan task force to create, By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine monitor best practices LANSING — A plan to capture By Jay Greene Michigan sales and income taxes to [email protected] oset the costs of large development Detroit Medical Center ocials projects on contaminated sites likely gave a one-hour presentation last would result in the state losing out on week to state ocials on steps they are some new revenue. taking to address problems and health On that point, supporters and crit- code violations outlined in an inspec- ics of a sweetened incentive for so- tion report on the downtown hospi- called “browneld” redevelopment tal's central sterile processing depart- projects agree. But while advocates — ment that led to dozens of surgeries real estate developers, economic de- canceled over the years. velopment agencies and some state As part of its lawmakers — contend that the state corrective action wouldn’t award one if the project plan, DMC aims didn’t yield more revenue than it gives to create a away, questions remain unanswered multi-disci- about whether that revenue would ac- plinary perioper- tually be new. ative (surgical) In the week since it was introduced, council and task a ve-bill package in the Michigan force that will Senate has elicited criticism about rev- meet monthly to enue losses to the state’s general fund discuss best prac- Eadie: Was aware budget and the wisdom of approving a 4 and more for 2941 tices in the sterile of sterile tax incentive for billionaires — refer- processing de- processing issues. ences to Detroit businessman and Mediterranean restaurant chain plans ambitious expansion partment and Quicken Loans founder Dan Gilbert, others that work with patients before, whose Rock Ventures LLC holding By Sherri Welch during and after surgeries, said Regi- company is among the plan’s biggest [email protected] nald Eadie, M.D., DMC’s COO and proponents. Less than a year after opening its CEO of DMC Detroit Receiving, Harper e state is “forgoing a portion of agship restaurant in Rochester University and Hutzel Women’s hospi- the new revenue,” said Matt Cullen, Hills, 2941 Street Foods LLC is pre- tals. Rock Ventures’ principal, “but, con- paring to open four other metro Eadie said that for at least two years versely, if they weren’t forgoing it, they Detroit locations. he has been aware of the issues in wouldn’t get the new revenue.” And that’s just the start. DMC’s central sterile processing de- at “but for” argument — as in, e restaurants, set to open be- partment, which serves Receiving, this project would not happen “but tween the end of September and Harper, Hutzel and DMC Children’s for” this incentive — is challenged by February, are part of the chain’s Hospital. critics of tax-increment nancing dis- larger plan to open 25 Michigan lo- “ere is no department in health tricts like these for what they say is in- cations over ve years. e fast ca- care that operates in perfection,” said conclusive evidence that it works. sual restaurants could be described Eadie, a Detroit native who graduated Even when a development is com- as a Mediterranean version of Chi- from Wayne State University School of pleted, it is dicult to determine potle Mexican Grill. Medicine and interned in emergency whether captured tax revenue — in A Midtown location is expected PHOTOS BY 2941 STREET FOOD medicine at DMC. “ere will always this case, income and sales taxes — is a to open at 4219 Woodward Ave. be- Inside the Rochester Hills location are wooden tabletops and a rustic design be areas of opportunity” for improve- direct result of the new building or the tween West Willis and West Can- for diners who can customize their own Mediterranean meals (above). ment. result of shifting money from Michi- eld streets this month or early in Eadie said he is aware that surgical gan residents that the state already October, followed by a restaurant at corner at Maple and Telegraph Vegas because we want to enter the cases at DMC have been canceled for a collected when they lived someplace 1701 S. Old Woodward in Birming- roads, has a target opening of next West Coast market,” said Jacques number of reasons, mostly at Chil- else, said Michael LaFaive, director of ham in November. spring. Van Staden, a James Beard Founda- dren’s Hospital, including instances scal policy for the Mackinac Center Its Auburn Hills site will open in e company, which is project- tion Award-nominated chef and when surgical trays were incomplete for Public Policy in Midland. late January or early February in a ing $1.5 million in sales its rst year, co-owner of the venture with Joe or the tray’s plastic protective covering “It’s very plausible, but the chal- newly constructed building at Uni- will spend $1.8 million to open the Vicari, CEO of the Joe Vicari Restau- was penetrated, or cancellations by lenge is teasing out what is truly a versity Drive and Squirrel Road, four additional stores, which will rant Group, whom he met as a cli- patients or surgeons. function of the new development and where a Palm Palace restaurant join the location that opened in ent for his consulting rm, and Do- Prompted by a six-month investiga- what is captured regardless of it,” once stood. And a fth location, in Rochester Hills last November. raid Markus, principal with real tion and an Aug. 26 article by e SEE BROWNFIELD, PAGE 49 Bloomeld Hills at the northwest “en we’re going to go to Las SEE FOODS, PAGE 45 SEE DMC, PAGE 47

MUST READS OF THE WEEK Sti upper lip Transformation of its own Panic over Brexit vote shows why wealth managers Center for Healthcare Research and Transformation sets tell clients to avoid crisis mode, Page 37 new course as funding changes, Page 5 4 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 Critics: Proposed charge could pull plug on clean energy growth

By Jay Greene e utilities, which call net metering a Another problem with the bill, said [email protected] “subsidy,” believe solar and wind cus- Hagerty and Barteau, is it continues a A proposed new grid charge leveled tomers should pay their fair share to 150 kilowatt cap on projects eligible for at small solar and wind projects in legis- support transmission lines, substations, net metering. is discourages small lation on the Michigan Senate oor transformers, meters and other infra- businesses from investing in small solar could derail growth in the state’s net me- structure costs. and wind, Barteau said. tering program that incentivizes clean “Most states have one megawatt. I energy produced by homeowners and Slow but steady growth don’t know of any state that limits it as small businesses. A small but growing number of peo- much as Michigan,” Hagerty said. Despite some changes in Michigan ple and small businesses in Michigan Last month, the Iowa Utilities Board Senate Bills 437 and 438 — primarily over the past decade have invested approved new regulations to increase sections that govern net metering pro- thousands of dollars in small solar panel the state’s net metering cap to 1 mega- gram rules — businesses in the state’s arrays under 20 kilowatts to save money, watt from 500 kilowatts to encourage small solar and wind industry say the improve electric grid reliability and cut small businesses to invest in small solar proposed bill package could reverse down on greenhouse gases that contrib- projects. e board also ordered utilities more than eight years of growth in net ute to man-made climate change, ex- to pay net metering customers for saved metering by discouraging investment in perts say. credits; the rule gives half back to cus- small projects. Under Michigan’s 2008 landmark en- tomers and half to a fund to help low-in- Under SB 437, the Michigan Public ergy bill, Public Act 295, the state man- come residents pay energy bills. Service Commission would be empow- dated a net metering program that gives “We lose many commercial custom- ered to set a “fair and equitable grid credits to electric customers whose solar ers because of the limit,” Hagerty said. charge to apply to customers who par- or wind power generating systems pro- “ey run the gamut: Auto repair shops, ticipated in a net metering or distributed duce electric energy in excess of their machine or stamping companies, man- generation program.” needs. at electricity contributes to ufacturing companies. ey need at e proposed bill, which is spon- power grid reliability and, in eect, can least one megawatt.” sored by Sen. Mike Nofs, R-Battle Creek, provide local electricity to neighbors. Learner said states like Iowa, Minne- would likely require the MPSC to hold a Last year, there was a 20 percent in- sota and Illinois have moved to encour- contested hearing before an administra- crease in net metering in Michigan, said age net metering. For example, Illinois is tive judge who would hear testimony the MPSC’s 2015 net metering and solar reviewing a proposal to increase its from all sides about a grid charge. e program report issued Sept. 12. e 250-kilowatt project cap to 2 megawatts, judge would then make a recommenda- MPSC report said net metering in- he said. tion to the MPSC, which the commis- creased to 2,155 customers in 2015 from Sunil Agrawal, president of Nova sion could accept, reject or modify in an 1,840 customers in 2014. Consultants Inc., a Novi-based energy, order, said MPSC spokeswoman Judy One reason for the growth is that solar engineering and environmental com- Palnau. panel costs have dropped 50 percent pany, said he supports continuation and Last week, Nofs distributed draft four since 2010. Another reason is the net expansion of existing net metering laws. of SB 437 S-6 to the Republican caucus. metering program gives customers He said grid charges would drive up Spokesman Greg Moore told Crain’s that credits based on retail rates. costs for privately owned and small re- while Nofs wanted to hold a vote on SBs But a grid charge fee, if set too high, newable projects. 437 and 438, which is sponsored by Sen. could reverse those positive growth Agrawal said if net metering changes, John Proos, R-St. Joseph, a vote on the trends, said Howard Learner, executive it will be very dicult to make a nan- energy package likely will be held some- director of the Chicago-based Environ- cially viable case for smaller renewable time in October. mental Law and Policy Center. energy projects such as residential and Mark Hagerty, president of Michigan “Net metering is working in Michi- small commercial sites. Solar Solutions in Commerce Town- gan. It is moving forward in a modest but Learner said job creation is another ship, said his business could be adverse- increasing way,” Learner said. “ere is reason to encourage net metering pro- ly aected if the grid charge was too high no reason to change the regulatory grams. and discouraged customers from invest- structure. It creates jobs and clean ener- “Costs have dropped from about $4 ing $10,000 to $20,000 in a rooftop solar gy value.” per watt to about 50 cents,” Learner said. project. Learner said utilities also are sending “e panels also have become more ef- “If the grid access fee is comparable mixed messages about improving ener- cient. ere are tremendous econo- to what other states have done (about $5 gy capacity in Michigan to prevent future mies of scale now with solar. ” per month), there would be a slight im- blackouts or brownouts. While net metering only represents pact,” Hagerty said. “e bill doesn’t put “ey talk about coal plant closings 0.019 percent of Michigan’s total retail a cap on the fee. If it is high, it could have and how it could negatively aect capac- electric sales, purchases and installation a substantial impact on net metering ity and they are also trying to stop small of solar and wind power systems sup- and solar.” solar that contributes positively to the port hundreds of Michigan jobs, accord- While Hagerty said his business is up grid,” Learner said. “ey just don’t want ing to a 2015 MPSC report. 40 percent over last year with about 55 the competition.” Overall, including large-scale wind projects, several customers have already Learner said any changes in net me- farm projects, the MPSC said energy backed away from rooftop solar installa- tering should be conducted fairly and jobs are expected to grow 7 percent by tions because of talk of changing the law. customers should be compensated for 2020 to nearly 8,000. Customers using He said the vast majority of system in- their contributions. net metering in 2015 produced 17,065 stallations are solar projects approved Mark Barteau, director of the Univer- kilowatts, an increase of 2,855 kilowatts Access BIDCO is a regulated Michigan nancial institution for net metering. sity of Michigan Energy Institute, said from 2014. providing nancial and management assistance to Michigan “My biggest concern is if I hire some- a connection charge for net metering Solar was by far the most popular businesses, structured to ll the void between bank body, and the state changes its policy, I isn’t unreasonable on its face. method of generating electricity under lending and venture capital investment. Services include: have to lay them o and deal with un- “e real question is what is a fair and the program, with an additional 333 net employment and legacy costs,” said Ha- equitable charge? e devil is in that,” metering installations adding a total of gerty, who employs seven and is open- Barteau said. “e magnitude of the 2,570 kilowatts in 2015. A smaller num- Direct Lending • Consulting ing another oce in Riverdale. “I hope charge is uncertain, and the folks in the ber of net metering projects involved this bill dies on the vine,” he added. solar industry have reason to be con- small turbine wind power, with hydro- Subordinated Debt • Credit Enhancement Ocials for Consumers Energy Co. cerned. e Legislature could put some electric and biogas, or methane digest- and DTE Energy Co., the state’s two in- ceilings in the bill to cap the charges. ers, representing even smaller numbers. Troubled Debt • Equity Investments vestor-owned utilities, have told Crain’s at may allay some fears.” Michigan ranks about 12th among they favor the grid charge and that the Barteau said he has concluded that states that oer net metering to custom- 200 North Washington Square, Lansing, MI 48933-1313 current net metering law creates unfair utilities are not opposed to solar. “ey ers. Arizona is No. 1. subsidies that must be paid for by cus- are putting in new capacity. ey just Jay Greene: (313) 446-0325 517.372.1297 • accessbidco.com • [email protected] tomers who don’t own solar systems. want to own it,” he said. Twitter: @jaybgreene CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 5 CHRT sets new course, navigates funding changes By Jay Greene has grown and evolved into a stronger wants to help CHRT diversify. [email protected] “This will enable us to organization with a good reputation,” CHRT’s future work is expected to One of the premier health policy broaden our impact and Hetzel said. “ ey are doing what include jobs for the Michigan Depart- analysis organizations in Michigan is work with additional good organizations do: diversify fund- ment of Health and Human Services; evolving further into a national insti- ing sources.” Blue Health Intelligence, a data analyt- tute even as it makes do with less fund- customers in Michigan But Hetzel said the drop in funding ic subsidiary of Blue Cross Blue Shield ing from its founding organizations. and nationally.” to CHRT has nothing to do with the Association; the Brookings Institu- e Ann Arbor-based Center for Blues’ plan, begun last year, to cut $300 tion; and the Commonwealth Fund. Healthcare Research and Transforma- Marianne Udow-Phillips, Center for Healthcare million in administrative costs out of “We now have a broader purpose tion, headed by Executive Director Research and Transformation the company over three years. with our new bylaws to benet the Marianne Udow-Phillips, has revised “We always intended to bring the state of Michigan, the nation, and to its bylaws and articles of incorporation co-founder of Thomas Group Consult- CHRT, but at a lower level. He declined funding level down once they ma- improve population health and evi- and reduced its board to nine mem- ing Inc. to specify the amount for 2017. tured,” Hetzel said. dence-based medicine,” Udow-Phil- bers from 12, now including three in- Andy Hetzel, Blue Cross vice presi- “We were the initial funders of Tony Denton, COO of University of lips said. dependent members. dent of corporate communications, CHRT along with the University of Michigan Health System, said UM is Jay Greene: (313) 446-0325 But it will have to regroup in 2017 said Blue Cross will continue to fund Michigan. anks to its good work, it contributing $300,000 for 2017 and Twitter: @jaybgreene with about $1.5 million less in funding from its founding organizations, the University of Michigan and Blue Cross Blue Shield of Michigan. Since 2006, when CHRT was created, Blue Cross average contributions totaled about $1.5 million per year and UM about $500,000. CHRT has replaced nearly all the $200,000 drop in funding from UM and an unspecied amount from the Blues and projects to operate on a $2.5 Your wealth million budget in 2017, nearly the same amount as in 2015. It employs about 23 sta and researchers. “Last year, our board looked at our isn’t the only thing nine-year journey ... and the contribu- tion we have made in providing unbi- ased, fact-based information” in changes in health care delivery and you’ve earned. the nancing system that aect Michi- gan, said Udow-Phillips, adding: “It was gratifying to me to get the positive feedback” from external organizations. Starting last December, the board concluded it was time to become self-sustaining and shed some annual funding contributions from Blue Cross and UM, Udow-Phillips said. e 12-member board previously consisted of six members from Blue Cross and six from UM. “ is will enable us to broaden our impact and work with additional customers in Michigan and nationally,” Udow-Phillips said. In December 2006, as part of the sale of that transferred ownership of M-Care and M-Caid from UM to Blue Cross, CHRT was formed as a joint Experience a higher level of service, knowledge venture between UM and the Blues. Established to “conduct research and and respect, with Comerica Wealth Management. projects to improve health care in Michigan,” CHRT was set up as a No matter how simple or complex your financial picture, Comerica provides a 501(c)(3) LLC, a shareholder model. higher level of wealth management, with one-on-one service and wealth plans As part of the restructuring, designed around your unique needs. You’ve earned it, now experience it. Udow-Phillips said, CHRT has con- verted into a 501(c)(3) membership model with a nine-member board, For more info, visit Comerica.com/WealthManagement today. which includes three members from Blue Cross, three from UM and three public members. UM and Blue Cross retain powers that include adding new board members, merging with another organiza- RAISE YOUR EXPECTATIONS. tion or dealing with certain expendi- tures. e board’s rst meeting is slotted for Oct. 4. e new independent pub- ® lic members are Rob Casalou, CEO of St. Joseph Mercy Health System, Ann Wealth Management Arbor; Francine Parker, executive di- COMERICA BANK. MEMBER FDIC. rector of the UAW Retiree Medical Ben- Comerica’s Wealth Management team consists of various divisions of Comerica Bank, affiliates of Comerica Bank including Comerica Bank & Trust, N.A., and subsidiaries of Comerica Bank including World Asset Management, ets Trust; and Terence omas, Inc.; Comerica Securities, Inc.; and Comerica Insurance Services, Inc. and its affiliated insurance agencies. World Asset Management, Inc. and Comerica Securities, Inc. are federally Registered Investment Advisors. Registrations do not imply a certain level of skill or training. Comerica Bank and its affiliates do not provide tax or legal advice. Please consult with your tax and legal advisors regarding your specific situation. CBP-6107-02 09/16 6 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 Food makers join Forgotten Harvest YOU FLY PRIVATE program By Sherri Welch BECAUSE YOU DON’T LIKE RULES. [email protected] Why do you accept paying for taxi time, minimum flight Seven local food manufacturers have signed on to the co-branding and time, trip changes or cancellations, and adjust your private-label program Oak Park-based schedule around blackout dates and restrictive service food rescue Forgotten Harvest areas? With Corporate Eagle you won’t. launched last year. By either agreeing to add Forgotten Harvest’s “Tastes Real Good-Does Real Good” brand to their own labels or producing private-label products for For- gotten Harvest, the food companies gain new or expanded distribution with area and state grocers. And Forgotten Har- vest gains an opportunity to increase its brand awareness, along with a percent- age of the sale price of every product sold to support its mission. e agreements rely on products made by each of the local food companies and not food donated to Forgotten Har- vest to help feed the hungry. corporateeagle.com | 248.461.9001 “We’ve had people who know about For- gotten Harvest and recognize (the logo on co-branded products) and say, ‘ is is a great way to support Forgotten Harvest in a dierent way,’” said Kirk Mayes, CEO of Forgotten Harvest. Your customized financial solution rough the agreements, 7.5 percent of the net product sales of each co-branded or Forgotten Harvest brand product (minus any returns) will come Comprehensive guidance tailored to your needs to the food rescue. Of that, 2.5 percent will go to marketing and 5 percent to At Rehmann, we oer you integrated services in all areas of your help fund the nonprot’s mission, nancial life. Our robust solutions include: Mayes said. e program isn’t something the • Social security optimization food rescue is looking at to fatten its bot- • Retirement income planning tom line right now, he said. If it brought in $25,000 to $30,000 in revenue for For- • Tax advantage investing gotten Harvest the rst year, “I think that • Asset protection and long-term care strategies would be a great start.” • Estate, charitable and trust strategies Forgotten Harvest is operating on an $8.5 million cash budget for scal 2017, Mayes said. Contact me today to learn more. “We don’t look at this as a way to make money as much as a way to expand the Forgotten Harvest brand ... to get our name out there. We hope it’s good for the businesses and gives them chances to get relationships with some new retailers and get them in the hearts Gary Gilgen, CFP® and minds of people in the local area.” Director – Financial Planning Department As Crain’s reported in March, Forgot- [email protected] | 248.458.7881 ten Harvest is in the process of exiting Hopeful Harvest Foods Inc., a for-prot subsidiary it launched about two years ago to provide food companies with services ranging from commercial kitchen rehmann.com space to processing, manufacturing and co-packing. e business grew quickly, Forgotten Harvest said at the time. In the interest of staying on mission, its board Securities oered through Royal Alliance Associates, member FINRA/SIPC. Investment advisory services oered through Rehmann Financial, a Registered Investment voted to merge the for-prot into Seed, Advisor not aliated with Royal Alliance Associates. 1500 W. Big Beaver, Troy, MI 48084 | 248.952.5000. the food incubator/accelerator CONTINUED NEXT PAGE CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 7

FORGOTTEN HARVEST Slow Jams and Detroit Bold Coee are among the brands working with Forgotten Harvest.

FROM PREVIOUS PAGE operated by Detroit’s Eastern Market Corp. and Garden Fresh Gourmet founder Jack Aronson. Forgotten Harvest launched the co-branding and private label program separate from Hopeful Harvest last year. Mucky Duck — whose founder, Dave Zilko, former vice chairman of Garden Fresh, is a Forgotten Harvest board member — became the rst local food company to bottle co-branded products with Forgotten Harvest. Now, several other food makers are also producing co-branded products, including Detroit Bold Coee, Apolo- nia Dressing, Jen’s Gourmet Dressings, Scotty O’Hotty sauces and Michae- lene’s Gourmet Granola. Romano’s Foods is producing For- gotten Harvest-branded marinara sauce, and Slow Jams is making ve varieties of Forgotten Harvest jam: strawberry, blueberry, raspberry, strawberry balsamic and blueberry lavender. Kroger, Busch’s Fresh Food Mar- kets, Holiday Market, Hollywood Mar- ket, Westborn Market, Market Square, Papa Joe’s Market, Plum Market and other retailers are stocking 24 dierent Forgotten Harvest branded and co-branded products, with Acosta Sales and Marketing Co. and Lipari Foods Inc. acting as the broker and dis- tributor. “Kroger taking on these products ... is (a) huge step for us,” said Chris Nemeth, senior director of social enterprise for Forgotten Harvest. Sherri Welch: (313) 446-1694 Twitter: @sherriwelch

BANKRUPTCIES e following businesses led for protection at U.S. Bankruptcy Court in Detroit Sept. 16-22. Under Chapter 11, a company les for reorganization. Zweite Stufe Inc., 1266 Yorkshire Road, Grosse Pointe, voluntary Chap- ter 11. Assets and liabilities not available. Wilise Corp., 1266 Yorkshire Road, The Leader in Grosse Pointe, voluntary Chapter 11. Assets and liabilities not available. Complex Business Litigation 8 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 The Lodge: A poem on two Detroits

e following is an excerpt from the closing stanzas of “ e Lodge”, an original poem written by Michael D. Ellison (aka Mike Ellison) who performed the piece at Detroit Homecoming on Sept. 15.

Some people think e D is all about the Big 3 OPINION Some think it’s the ruin porn reporters often implore you to see Some believe it’s a phoenix rising from the ashes And still others say it’s an ashtray, writhing with madness Well, if there’s one thing that I’ve clearly come to see New OT pay law It’s that basically … Detroit doesn’t care what anybody thinks e D does not care whether you, me, we think it is on the brink of extinction or the apex of greatness It is a matter of perspective needs rethinking because like life itself, Detroit is ripe with unanswered questions Its truth is elusive — rarely matter of fact e federal overtime law that is scheduled to take eect Dec. 1 Never either, or — always this and that e last stop on the Underground Railroad is a job killer. and the station where Rosa graciously parked her remarkable soul e Department of Labor is addressing some bad business It is Motown and Techno, P-Funk and J. Dilla practices by some bad actors. John C. Lodge and the late, great Grace Lee Boggs Yes, there are draconian managers who take advantage of low- A bellwether for the nation, er-paid help at certain companies. ose companies also tend to Detroit is beautiful transformation and brutal gentrication It is Andre Johnson’s drug recovery program be the ones with high turnover, especially in an employment mar- acknowledged as a Champion of Change by the Obama administration ket that provides options. and water shut os admonished But this new set of overtime rules, which also raises the thresh- as a human rights violation by the United Nations old for salaried managers to be eligible for overtime pay, threatens Detroit is deance and patience, not riots but rebellions, and in my estimation to disrupt critical workforce economics in Michigan and else- Renaissance is a worthy endeavor and ideal where. But it is a gloss applied to conceal that which is real and relevant by merely projecting benevolence Michigan and 20 other states are right to le a lawsuit, as Dustin Whether we revel in its praise or persecution, its grit or glory OTHER VOICES Walsh reports on Page 1. e court Detroit is an epic novel depicting its own story Mike Ellison If a manager system would be wise to take it up. with a cast of protagonists that spans activists and capitalists has to worry ink about the creative industries. in tireless pursuit of happiness Mike Ellison was born in Ethiopia, raised in Advertising agencies, public relations As it is, this city is renown for automotive ingenuity Reston, Va., and fully realized himself as an about giving however, youth, innovation, and unity can be the new Big 3 actor, poet, producer, recording and per- rms, small community newspapers, At least that’s what I see formance artist in Detroit. a young, design rms. It’s not uncommon at What do you believe? ambitious all for salaries to begin under the talent that minimum threshold of $47,500 a year. Jobs at that pay level, or below, TALK ON THE WEB stretch are often foot-in-the-door jobs, so ness jobs are good, but too few to solve Wow, I rst listened to her on W4, assignment ... high-potential people can prove Re: Tesla sues Michigan over direct sales ban Detroit’s unemployment problem. so that shows my age. I wish her joy what is the themselves. Richard Marks and happiness in her retirement. ultimate cost And think about the small, entre- is isn’t the rst time corrupt poli- First last ticians have worked with the estab- e community needs to be com- here? preneurial companies. ey need a chance to scale up before being hit lishment to overpower new technolo- petitive — whether it’s general labor or She will be missed, but is this really gies. to stand skilled labor — so that people want to a cleansing of the payroll to make with such a dramatic cost increase. I applaud Tesla’s courage up for its rights and the rights of the locate here. Government issues and room for Jason Carr? Again, overtime protections would apply to workers who make up American people. unions have kept people from our John Golembiewski to $913 a week, and the threshold would readjust every three years Fadi Nassar community and left those who can’t to reect changes in average wages. About 100,000 additional em- get out buried in generational poverty. Re: Michigan sues to block ployees in Michigan may qualify. Re: Ballmer talks Detroit pride, E. M. Parmelee expansion of OT pay law If a manager has to worry about giving a young, ambitious tal- poverty, philanthropy Re: WDIV anchor If you are working, you deserve to ent that stretch assignment, or has to postpone lling a position What is really missing is the key to ev- Carmen Harlan to retire be paid for the eort. It’s not that com- — or even worse, lay o sta — what is the ultimate cost here? Job erything: jobs. Detroit was built around plicated. is is something that the growth. ere could have been a compromise solution, perhaps a jobs in industry creating things. ese Carmen will be greatly missed; she oligarchs have been taking advantage lower threshold or more thoughtful exceptions for certain job cat- jobs were not high tech, but rather jobs is a true ambassador for not only De- of to enrich themselves for decades. egories. average people could do. Manufactur- troit but for Southeast Michigan, and Good for the Obama administration, ing jobs t that bill. Steve Ballmer should always genuinely kind. one of the few things they’ve done to e pendulum has swung too far — and there is still an oppor- consider investing in manufacturing C&B Scene Inc help the common person. tunity to nd a more palatable solution. companies that create jobs. Small-busi- Bob Sadly, it won't last forever Detroiters have been very fortunate e election is Nov. 8, and we'll inau- er races. And there are brochures, Everyone has an opinion about this year with summer weather that is gurate a new president in January. lawn signs, digital marketing and what will happen to our economy af- lasting right into autumn. Some peo- And just about half the country likely more. ter this election. You can pick an econ- ple wonder if it will last till November. will revile the new administration — e presidential race may turn you omist with a view you agree with; But even with Michigan's unique regardless of who wins. It's a tight race o, but we have many more candi- there is plenty of ammunition for all weather patterns, we know the streak and a lot of vitriol. Only time will tell dates all the way down the ticket, from types of predictions. Lots of opinions, of sunshine will come to an end soon- on whether or not some wounds will state lawmakers to school board just as in politics. er or later. Snowbirds will head south heal. members in Detroit. It's still important At least we have sports teams to at the sign of the rst frost — leaving I have never gured out whether or KEITH CRAIN to show up and vote. cheer for. e Tigers might be a wild the rest of us behind to enjoy — or en- not having seasonal changes is good Editor-in-chief And who knows? Perhaps the heat card in the post season. And we can dure — winter. for the local economy. But one sea- generated from our two presidential soon begin cheering the Pistons and You could say the same thing about sonal change — the election cycle — is nonstop televison ads in the presiden- candidates will keep it a lot warmer for the Red Wings. Unlike politics, these our political season -- enjoy or endure. a boost for certain kinds of spending: tial race and local media buys for oth- at least the next month. are teams we can all root for. CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 9 Detroit comes up short on building tall, but is that a bad thing? Where are the new skyscrapers in funky high-tech and/or distribution ect; it's about place-making. e De- housing bubble burst. Remember the Detroit? sites near Corktown, and residential quindre Cut is just as important as a anecdotes about the half-empty resi- is is a question I have posed spaces. Especially at certain price lev- new residential complex. Maybe dential skyscrapers or suburban oce during a number of recent meetings at els (read: housing for everybody). e more. towers built on spec and not lled for business organizations. My co-work- leaders at the Detroit RiverFront Con- Corporate investment matters, too. years? e creepy post-apocalyptic ers have even begun rolling their eyes servancy will point out that the tides In Philadelphia, a $1.5 billion Com- developments you see photos of from about my obsession. have begun to shift. Land controlled cast Corp. tower and innovation cen- dierent places around the world? But if Detroit is America’s great by the city or the conservancy is worth ter is under construction and slated for e lessons learned in the real es- comeback story, where are the new of- JENNETTE SMITH more now, and there are more poten- a 2018 opening. tate community boil down to this: It’s ce towers? Where are the new high- EDITOR tial suitors for sites that are also more A project like that, this one involv- about place-making. Anything else rise condos? Where are the large cor- [email protected] development-ready. Sellers can be ing a new 59-story structure, requires a isn’t sustainable. porations making bold statements Twitter: @jennette_smith choosier. Plans can be and are more big corporate leap of faith. Could it In many ways, it’s a good thing De- with gleaming, new signature towers? thought-out with community benets, happen here? Yes. Will it? Hopefully. troit isn’t like Atlanta. We don’t often Well, it’s not quite that kind of a So what is realistic on a short- public easements, thought given to On the other extreme, consider a build skyscrapers. But when we do, comeback. Yet. er-term basis? e other kinds of proj- things like security and landscaping. place like Atlanta, which was one of they are among the most interesting When I was on a summer road trip ects the market is supporting include It’s not just building a one-o proj- the Sun Belt cities hit hardest when the around. with my family a couple of months ago, I noticed patterns. Drive through Pittsburgh, Philadelphia and, of course, the New York area. You guessed it. New oce towers dot the horizon. Chicago? Yep, new high-rise construction there, too. It’s a recovery economy, so this shouldn’t be a surprise. What gives? Call it the seven-story itch. (As in the number of oors, not my editing capacity on a deadline day.) Real estate economics have lots of variables. Variables that can change quickly. Among them: e value of the land, the going rental rates, the pros- pects for tenants, going construction costs and any nancial incentives developers can pull together on a given site. Developers trying to get construction loans need to prove that the economics work. An example: Estimates on the costs for the Little Caesars headquarters building in the works on Woodward Avenue is $600-plus per square foot. Eight stories. Any project taller than that seven- or eight-story threshold increases construction costs sharply. So there's the conundrum. If you’re in Manhattan, the economics of building tall can work. And there are some engineering tricks that can make high-rises more aordable, such as the twisted tower designs made possible by advances in construction, engineering and architectural computer programs. But no matter what architectural style or exact design, the economics have to work. Revenue from rents has to cover the marginal costs of more construction and extra steel. Detroit isn’t there yet. Our tallest structures by number of oors are the Renaissance Center (the 100 tower with the hotel has 73 stories) and the Some banks just see the deal. glorious art deco Penobscot, clocking in at 47 oors. Technically, anything At Huntington, we see the people behind it. over 10 stories is considered a sky- scraper. Your perception on what a true high-rise is might be swayed de- Does your bank look at your company like just another pending on your travels and personal number? At Huntington, our Relationship Managers offer the experience. It is realistic to expect to see more type of powerful insights, industry experience and strategic 15- to 20-story buildings in Detroit's business solutions that can only come from someone who near future, especially for mixed-use takes the time to get to know your business. Because at sites in prime locations. ink the riverfront, the former Hudson’s store site Huntington we’re big enough to meet your needs, but small smack in the center of downtown, and enough that every customer matters. sites near downtown that are currently surface parking lots. Use your imagi- nation. It’s completely conceivable Member FDIC. ¥® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. that Detroit will have substantially Huntington® Welcome.TM is a service mark of Huntington Bancshares Incorporated. © 2016 Huntington Bancshares lled out its skyline during the next 10 Incorporated. years. ink of how far the city has come during the past 10. DBpageAD_DBpageAD.qxd 9/15/2016 5:10 PM Page 1

3-15-16 | 10:41 AM | GMRENCEN, WINTERGARDEN

LARRY ALEXANDER IS REFLECTING A NEW DETROIT. PROMOTER. NAVIGATOR. DETROIT LEADER.

LARRY LIKES TO ATTRACT ATTENTION. Especially for Detroit! A 40-year veteran in hospitality and tourism, President and CEO Larry Alexander has transformed the Detroit Metro Convention & Visitors Bureau (DMCVB) into a leading facilitator of economic growth for Metro Detroit. Our city is a world-class leisure, business, and sporting destination, and Larry helps showcase our positive momentum to the millions who travel to and visit Detroit every year! Way to go, Larry! GMRENCEN is celebrating the spirit and vision of the people of Detroit. Learn more at reŴectingdetroit.com.

#REFLECTINGDETROIT CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 11

HOMECOMING DETROIT 2.0 OUTCOMES & OUTLOOKS

AARON ECKELS Detroit Homecoming co-founder Jim Hayes, at center of table on right, networks with Abess Makki of City Insight LLC as part of Detroit Link-Up, a project to pair Detroit-based entrepreneurs with the expats attending Homecoming. As part of the project, 40 entrepreneurs had a chance to meet 40 expats in a speed-dating style platform. Homecoming nds a place By Tom Henderson For three years (and counting), Detroit’s expats have used event with key nonprot and business leaders in [email protected] metro Detroit. One was with Trudeau, who It was the summer of 2013, and Jim to get together, give back, spread city’s good news was managing the Kresge Foundation’s De- Hayes was feeling antsy. He had no idea, troit investments, including M-1 Rail, the then, that this ennui would soon give birth stint with SI the day the 1967 riots started, “I suddenly found myself with nothing Woodward Corridor Investment Fund and, to what would quickly became something made a lot of friends and kept a warm spot to do. I wanted to nd a volunteer role and later, the so-called Grand Bargain, which of an institution: Detroit Homecoming. in his heart for the place after he left. thought about Detroit. I was fascinated by led to the philanthropic fund credited with His feeling of being antsy would have “When I was here, Detroit was still one of the ebbs and ows the city had gone the successful and fast resolution of De- long-lasting repercussions, but the feeling, the most powerful cities on earth,” he said. through,” he said. “Detroit is a microcosm troit’s bankruptcy. itself, wouldn’t last long, thanks to Laura After leaving Time in 1995, Hayes moved of the country. Many of the problems that At the end of a lunch meeting, Trudeau Trudeau of the Kresge Foundation. to Colorado to become president and CEO plague the country are very real here — made an o-handed suggestion: It would Hayes had spent 35 years with Time Inc., of Junior Achievement, a post he held for six things like an aging infrastructure and poor be great if someone would pull together including 10 years in the Detroit o ce of years. He started a music festival and was schools. I thought, maybe if you can x De- successful Detroit expatriates in a way to Sports Illustrated and three years as pub- active in the Colorado Springs community, troit, there’s hope.” benet Detroit. She told him if he wanted to lisher of Fortune. He’d arrived here for his but by 2012, he was bored. Hayes embarked on a series of meetings SEE HAYES, PAGE 12

INSIDE: OUTCOMES & OUTLOOKS Bouncing back Wendy HIlliard brings gymnastics program, Anatomy of impact New sensation eyes fairgrounds for new center, Page 24 Will Leather Goods plans to add Detroit takes center stage in Detroit manufacturing, Page 15 books, lm, Page 26 Online: See the videos Videos of chats with Steven Culture challenge Stalled, not done Ballmer, Jerey Seller and more Fadell: Motor City’s obstacles $200M investment fund still can be found at youtube.com/ come from within, Page 33 raising money, Page 16 crainsdetroitvideo 12 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 DETROIT 2.0: HOMECOMING DETROIT 2.0: HOMECOMING

fying, and the way the city has em- HAYES braced it, it’s been a celebration.” FROM PAGE 11 Here are just a handful of good- news outcomes that expats attending do something, go for it. Homecoming have generated: Hayes went. He attacked the idea of Will Leather Goods, a company getting expats back to town — and get- based in Eugene, Ore., opened a retail ting them to do something meaningful store in Midtown last November, and on once they came back — with a passion the second day of this year’s Homecom- that left no room for ennui or antsi- ing, founder Will Adler said he would ness, although his focus on expats relocate his hat manufacturing and would ultimately have the unintended e-commerce operations to Detroit and consequence of drawing criticism that hire 50 staers over the next 18 months. the focus on those who had left was at Wendy Hilliard, a member of the ZHOFRPH the exclusionary expense of those who USA Gymnastics Hall of Fame, is open- had stayed. ing a gymnastics program for children But that's getting ahead of the tale. at the Joe Dumars Fieldhouse at the KRPHWR former state fairgrounds. Steve Ballmer An idea becomes real Adam Levinson, a hedge fund $1'$//28528767$1',1*'&'6$/801, During his time in Detroit, Hayes manager, has pledged to raise $10 mil- had become good friends with Keith lion for the Detroit Children’s Fund, a Crain, chairman of Crain Communica- new fund of the Skillman Foundation. tions Inc. and editor-in-chief of Crain's Tom Tierney, the founder and re- Led by Detroit Business. A week before Labor tired CEO of a health supplement renowned faculty Day in 2013, Hayes visited Crain in his company in California, gave $2 million in world-class facilities, o ce. to Wayne State University, which led Detroit Country Day School delivers “I said, ‘Every college and high school to the naming of the Tierney House last exceptional academic experiences both within has a homecoming, why not a city?’” September. It is the campus head- and beyond the classroom each and every day. Hayes recalled. quarters for alumni aairs. Crain swung his chair around to look Jim Welch moved his luxury trav- out his o ce window, stared a moment, el agency from Chicago to suburban 248.646.7717 | www.dcds.edu Middle School ﬁeld & stream exploration swung his chair back and said: “Let’s do Detroit. it!” Capri Capital Partners, a Chica- :+(5((;75$25',1$5<+$33(16every day Detroit Homecoming was born. go-based real estate management LOWER SCHOOL JUNIOR SCHOOL MIDDLE SCHOOL UPPER SCHOOL Crain sent Hayes to the other side of company co-founded by Cass Techni- was part of a Homecoming panel on Grades PK-2 Grades 3-5 Grades 6-8 Grades 9-12 the fth oor of the Crain building in cal High School grad Quintin Primo III, Friday this year at the Rusas Printing downtown Detroit to talk to Mary Kram- is raising a $200 million fund to develop Co. building in the New Center that dis- er, the publisher of Crain's Detroit Busi- multifamily housing in Detroit, though cussed the eects of gentrication as ness. “I told Jim, ‘OK, I like the idea.’ But I that fund has yet to materialize after two Detroit continues its comeback. had no idea what the event would look years. (See related story, Page 15.) An earlier Homecoming venue this like,” Kramer said. “I said I’d test the wa- Kramer expects a lot more to come. year had been Cass Tech. ters for support.” “We won’t see the full eect of Home- “Why weren’t the students from Cass Kramer met with potential funders in coming for ve or 10 years,” she said. invited here? Why aren’t they in the the foundation community, including room? ey should be part of the discus- Not without criticism Faye Nelson, president of the DTE Ener- sion,” said Basir to loud applause. , and Vivian Pickard, at’s not to say the event hasn’t met gy Foundation Rec center as metaphor then president of the General Motors with some controversy. Foundation. From its start in 2014, there has been is year, Hayes delivered the ey both signed on. “I had criticism that Detroit Homecoming is opening remarks for the Homecoming Ì i iÌÕ $150,000 to work with,” said Kramer. elitist and exclusionary. Expats are invit- in a particularly tting setting. “We were o to the races.” ed from a carefully curated list created by If you want to show hundreds of She also met with George Jackson, research and referrals. Nearly one-third former Detroiters signs of the city’s re- "7 /"7 the head of the Detroit Economic of the expat attendees this year were birth, there’s no better place than the Growth Corp., to get his input and get people of color. Brewster Wheeler Recreation Center him on board. Sponsor organizations, host commit- on the east side, a few blocks from Jackson told her he was very inter- tee members and a small number of Eastern Market. /,"/ ested. grassroots people are also invited. e Once one of the most important How many expats do we need to get general public can watch the live stream community hubs for African-Americans to be successful? she asked. of the panel discussions, reside chats in a vibrant city, it was shut down in Fifty, said Jackson. and other programming provided by 2006, had since fallen on hard times and e rst year, about 150 expats re- WXYZ-TV and watch archived videos had faced demolition. turned to town. Last year, 175 came. on the Crain’s YouTube feed. ousands of neighborhood kids is year, 200, from 25 states and 33 Kramer said the emphasis has always learned over the years to swim in the industries, including former Microso been on expats being in the sizable ma- center’s giant pool. Joe Louis trained Corp. CEO Steve Ballmer, perhaps the jority of attendees. there and fought his rst ght in the highest-prole expat in the three-year “Otherwise, it becomes just another basement. In 1932, the Harlem Globe- history of the event. conference,” she said. “ere’s just an trotters played the rst road game in At his reside chat with Dan Gilbert electric feeling in the room, having all their history on the basketball court on the opening evening of this year’s those expats back.” there, a court on which generations of Homecoming, Ballmer told the crowd Kramer and her Homecoming team kids rened their game, where even after that he and his wife, Connie, would be had a post-mortem last week, and a the center was shut down, kids would looking to make substantial contribu- main topic of conversation was how to sneak in, refusing to give the court up. tions as they targeted their major philan- open up next year’s event to more local Detroit Mayor Mike Duggan spoke thropic challenge: arresting the cycle of attendees. briey in a reception tent outside the rec intergenerational poverty. “e programming is so powerful center before everyone headed inside ÀÛ}«>ÃÃ e indication that Detroit will be on that we want to open it up,” she said. “Ex- for dinner and Hayes’ remarks. Demoli- ] the couple’s list could help boost the pats have also told us they would like to tion orders routinely cross his desk, he economic impact of Homecoming, meet more Detroiters during the event, said. Determined to rid the city of blight, VÌiÌ which in its rst two years saw what grass-roots people as well as mov- he routinely signs them. Crain’s estimates to have been about ers-and-shakers.” When he saw the order to tear down CPFÛÃHQT $260 million in conrmed or pending Qasim Basir, a movie director who the rec center, he said, “I thought, ‘is is projects. grew up in Highland Park and Ann Ar- going to be a gut blow to the residents of &QYPVQYP&GVTQKV “It is a good number,” Hayes says, bor — his newest movie, “Destined,” this city. We can’t just let this happen. We “one that staggers me. e participa- was lmed in Detroit a year and a half have to try to save it. We have to at least ÜÌÜ iÌÀÌ°À} tion of so many expats has been grati- ago and was released this month — give it a shot.’” CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 13 DETROIT 2.0: HOMECOMING DETROIT 2.0: HOMECOMING fying, and the way the city has em- braced it, it’s been a celebration.” Here are just a handful of good- news outcomes that expats attending Homecoming have generated: Will Leather Goods, a company based in Eugene, Ore., opened a retail store in Midtown last November, and on MSLGROUP Detroit is a full-service public Intellectually curious, we’re writers ﬁrst. the second day of this year’s Homecom- relations and strategic communications This helps us move our clients from ing, founder Will Adler said he would provider, and a member of the global strategic frameworks to storytelling, from relocate his hat manufacturing and Publicis family of companies, where we campaigns to narrative, from intrusion e-commerce operations to Detroit and work alongside partners like Publicis to engagement and from consumers to hire 50 sta ers over the next 18 months. Worldwide, Leo Burnett, Saatchi & Saatchi communities. Wendy Hilliard, a member of the and DigitasLBi. MSLGROUP has 11 oces USA Gymnastics Hall of Fame, is open- in the United States and more than 100 We’re Detroiters, so we’re resilient. ing a gymnastics program for children around the globe, in 26 countries. We’re Midwesterners, too, so we’re nice. at the Joe Dumars Fieldhouse at the former state fairgrounds. Adam Levinson, a hedge fund manager, has pledged to raise $10 million for the Detroit Children’s Fund, a U LGRO P new fund of the Skillman Foundation. MS Tom Tierney, the founder and retired CEO of a health supplement company in California, gave $2 million &217$&7 to Wayne State University, which led .DWKOHHQ$GDPV#PVOJURXSFRP to the naming of the Tierney House last September. It is the campus headquarters for alumni a airs. Jim Welch moved his luxury travel agency from Chicago to suburban AARON ECKELS Detroit. “I said, ‘Every college and high school has a homecoming, why not a city?’” Capri Capital Partners, a Chica- recalled Jim Hayes, co-founder of Detroit Homecoming. go-based real estate management company co-founded by Cass Techni- was part of a Homecoming panel on It was a shot that hit the bull’s-eye. cal High School grad Quintin Primo III, Friday this year at the Rusas Printing e city held o on demolition, and is raising a $200 million fund to develop Co. building in the New Center that dis- the rec center is now the focal point of a multifamily housing in Detroit, though cussed the e ects of gentrication as $20 million redevelopment project to that fund has yet to materialize after two Detroit continues its comeback. create a restaurant in the basketball years. (See related story, Page 15.) An earlier Homecoming venue this court, a meeting space and room for Kramer expects a lot more to come. year had been Cass Tech. three nonprot programs, including the “We won’t see the full e ect of Home- “Why weren’t the students from Cass headquarters for the popular Slow Roll coming for ve or 10 years,” she said. invited here? Why aren’t they in the bicycle rides. (Investors in the project in- room? ey should be part of the discus- clude KC Crain, an executive of Crain Not without criticism sion,” said Basir to loud applause. Communications Inc., the parent com- at’s not to say the event hasn’t met pany of Crain's Detroit Business.) with some controversy. Rec center as metaphor City ocials hope to capture a federal From its start in 2014, there has been is year, Hayes delivered the grant to support additional private de- criticism that Detroit Homecoming is opening remarks for the Homecoming velopment of housing and retail nearby, elitist and exclusionary. Expats are invit- in a particularly tting setting. on the 22-acre Brewster-Douglass site. ed from a carefully curated list created by If you want to show hundreds of e rec center was hardly ready for Welcoming You Back to the research and referrals. Nearly one-third former Detroiters signs of the city’s re- prime time for Homecoming, but the of the expat attendees this year were birth, there’s no better place than the city nonetheless issued a permit for the people of color. Brewster Wheeler Recreation Center rst event there in 10 years. Barton Ma- City That Moves the World Sponsor organizations, host commit- on the east side, a few blocks from low Co. ripped up the old vinyl oor tee members and a small number of Eastern Market. that had been put on the basketball As one of the world’s leading automotive suppliers, we know grassroots people are also invited. e Once one of the most important court long ago and installed new, tem- the kind of dedication it takes to be successful, whether it’s general public can watch the live stream community hubs for African-Americans porary ooring, patched the ceiling delivering outstanding seating and electrical systems to the of the panel discussions, reside chats in a vibrant city, it was shut down in and put up window coverings. and other programming provided by 2006, had since fallen on hard times and Generators were brought in to pro- global automotive industry or showcasing the future of the city that WXYZ-TV and watch archived videos had faced demolition. vide power. Basketball backboards revolutionized the world. on the Crain’s YouTube feed. ousands of neighborhood kids framed the tables set out in rows on Kramer said the emphasis has always learned over the years to swim in the the oor. Grati provided a colorful Lear Corporation is proud to sponsor the Detroit Homecoming been on expats being in the sizable ma- center’s giant pool. Joe Louis trained backdrop on all the walls. jority of attendees. there and fought his rst ght in the It was a work in progress, but it was Event as part of our continuing and demonstrated dedication to “Otherwise, it becomes just another basement. In 1932, the Harlem Globe- easy to picture what a cool setting this support the communities in which we do business. Detroit has always conference,” she said. “ere’s just an trotters played the rst road game in will be for an urban restaurant. been about the power of opportunity and drive unleashing our electric feeling in the room, having all their history on the basketball court e center is a metaphor for what the combined potential and we welcome you home to even greater avenues those expats back.” there, a court on which generations of expats saw as they attended various Kramer and her Homecoming team kids rened their game, where even after Homecoming events around town: at to reconnect, recharge and reinvest. had a post-mortem last week, and a the center was shut down, kids would city you love is a work in progress, but main topic of conversation was how to sneak in, refusing to give the court up. look hard, squint a bit, and you can see open up next year’s event to more local Detroit Mayor Mike Duggan spoke the future. You could even be part of it. attendees. briey in a reception tent outside the rec When the rst Homecoming was “e programming is so powerful center before everyone headed inside being planned, Duggan was con- that we want to open it up,” she said. “Ex- for dinner and Hayes’ remarks. Demoli- cerned it would be a “one and done.” pats have also told us they would like to tion orders routinely cross his desk, he Kramer told him then that she and meet more Detroiters during the event, said. Determined to rid the city of blight, Hayes, who serve as co-directors, grass-roots people as well as mov- he routinely signs them. would commit to at least three years. ers-and-shakers.” When he saw the order to tear down Now, Kramer says there will de- Qasim Basir, a movie director who the rec center, he said, “I thought, ‘is is nitely be a fourth Homecoming. lear.com grew up in Highland Park and Ann Ar- going to be a gut blow to the residents of “is hasn’t run its course,” said bor — his newest movie, “Destined,” this city. We can’t just let this happen. We Hayes. was lmed in Detroit a year and a half have to try to save it. We have to at least Tom Henderson (313) 446-0337 ago and was released this month — give it a shot.’” Twitter: TomHenderson2 14 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING Vendors, partners make ‘expat’ event a success Detroit Homecoming III is over, but the memories — and the outcomes — will live on. Right now, it’s the memories. Like the crew from Forte Belanger arriving for breakfast setup at the former Rusas Printing Building in New Center’s “Milwaukee Junction” neighborhood early on Sept. 16 only to dis- MARY KRAMER cover the building had no electricity on Publisher the third oor. Which is where breakfast was to be served. Mary Kramer is publisher of Crain’s No problem! In an age when cell- Detroit Business. Catch her take on phones double as ashlights, caterer business news at 6:10 a.m. Mondays Jad Said even put plastic wrap around on the Paul W. Smith show on WJR AM his head to create a kind of miner’s cap 760 and in her blog at to guide his way. e pre-dawn dark- www.crainsdetroit.com. ness was alive with cellphone lights. In its third year, Detroit Homecom- ing has created loyalty among “expats” cellphone pic to Motown legend invited to come home. But we’ve also Mary Wilson, now living in Las Ve- learned the power of the boots on the gas, who shot back an “OMG” re- ground here at home — vendors and sponse. Wilson lived in the projects partners who go the extra mile to make adjacent to the center, which have the event a “wow” because they share since been torn down. the passion and the vision for re-en- Our Homecoming team was engaging expats with our city. A complete ergized, inspired and, perhaps list of the Detroit-based vendors can be most of all, exible. at goes for found on Page 17. Crain sta as well as our partners. Examples: “Hamilton” producer Jerey n Barton Malow Co., the Display Seller was already on stage at Or- Group and JR Turnbull Communica- chestra Hall on Sept. 15 with tions were able to transform the Crain’s own Ron Fournier doing an long-vacant Brewster Wheeler Rec- interview when an email from reation Center from awful to ele- Adam Finkel, a key expat outreach gant — in 48 days. “e team at volunteer, popped up on my Barton Malow was like ninjas,” said phone. A long-anticipated video Jamie Rae Turnbull, the event greeting to Seller from fellow expat planner. “We asked for a ramp, it and lm producer Jerry Bruck- would be in the next day. Ask for heimer had arrived. railing, next day done. ... ey were No problem! Colleen Robar, Ro- amazing and laser-focused in mak- bar Public Relations,, who has been ing the space safe for our guests.” our production manager each n e old gym within the rec year, downloaded the video on her center was transformed into a laptop and the team at Premier magical place — again without popped it up on the screen as the electricity, but plenty of candle- interview wrapped up so we could light and battery-powered LEDs. A surprise Seller with this long-dis- Driving a generator gave power to some tance greeting from the guy who lights, and our sound system was produced “Beverly Hills Cop.” Now provided by Premier Event Technol- maybe we can lure Bruckheimer Brighter Future ogy. Expat Allee Willis, an home to be "live" at the event next award-winning songwriter, sent a year.

For more than 65 years, Ford Motor Company Fund has worked to improve people’s lives, investing $1.5 billion Job-matching event to support innovative programs in Community Life, Education, Safe Driving and the Ford Volunteer Corps. planned for Nov. 25-26 e Detroit Homecoming will ployers a chance to be put in touch continue into the fall with the new with candidates through a Thanks to you, our community is “Jobs in the D” job-matching event job-matching technology powered on anksgiving weekend. by WorkFountain as well as face-to- a stronger, better place. Local companies will have a face meetings. chance to meet people who have De- If you are a local employer inter- Ford salutes Crain’s Detroit Business. troit ties — but are no longer living in ested in participating in the event, the region. contact Keenan Covington at kcov- Jobs in the D will be composed of [email protected]. two events, one on Nov. 25 in partner- If you know of someone with ship with the Detroit anity group Detroit ties who is no longer living Born & Raised Detroit; the other in metro Detroit (but might be in- event, on Nov., 26, will be in connec- terested in coming home for the tion with the NextGen program of the right job) they can get more infor- Jewish Federation of Metropolitan mation on the event by sending an mmm$Yecckd_jo$\ehZ$Yec6\ehZ_dYecckd_jo6\ehZ Detroit. email to DetroitHomecoming@ e informal event will give em- crain.com. CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 15 DETROIT 2.0: HOMECOMING OUTCOMES Will Leather Goods’ aim: Neighborhood impact By Bill Shea Wayne State University and attended [email protected] the University of Detroit before em- Impact by the numbers Will Leather Goods’ plan to move its barking on an acting career in the Will Leather Goods isn’t a big-box hat manufacturing and e-commerce 1970s and early ’80s, previously has retailer, but the economic impact of operations from Oregon to Detroit and said his business is also driven by even a small business and jobs with hire 50 more sta ers over the next 18 philanthropy. rough Will Leather relatively modest wages can add up as months will further expand the retail- Goods’ Give Will initiative, Adler's those workers spend their money on er’s impact on a rapidly developing business has committed to donating other businesses downtown. neighborhood. 500,000 backpacks to underfunded “We’re in the public elementary schools in America, And those benets last well beyond process of begin- including thousands in Detroit. the $3 million-plus investment that ning to do some He thinks the sprawling, mixed-use created the store in the rst place. manufacturing in District Detroit development sur- According to an analysis conducted for Detroit. We’re go- rounding the new Little Caesars Arena Detroit Homecoming by University ing to bring our nearby will stitch downtown and Mid- of Michigan Ph.D. candidate Gidon hat shop to De- town together. Jakar, the numbers behind some of troit,” said Will “It was great to know there was go- that impact from Will Leather include: Adler, who ing to be more action happening out- MICHAEL LEWIS II/CRAIN’S DETROIT BUSINESS Will Adler: Intends founded the Eu- side the Midtown area,” he said. “I’m a Located at 4120 Second Ave. in Detroit’s Midtown, Will Leather Goods occupies to hire 50 more gene, Ore.-based big believer that Midtown is going to 9,000 square feet to sell its genuine leather products. employees. luxury leather be the Brooklyn, the SoHo of Detroit, Number14 of employees at the time of products maker the place where creative and innova- the analysis, eight of whom live in 2004 and event that draws Detroit expatriates in Business is getting better every day,” tive stores and restaurants are going to downtown. whose retail outlet in Detroit’s Mid- business back for possible local invest- Adler said. occur.” town has helped further a shopping ment. He bought the building for $550,000 All of the projects underway in De- and dining renaissance in the area. e Midtown Will Leather store has from Invest Detroit Inc., which spent troit, and the outside media attention, (See box.) 18 employees. Adler said he intends to $1 million on the initial build-out. Will have helped quiet critics of his deci- Estimated$1,414 monthly wage le over Adler’s comments came during this hire 50 more to work in creative, de- Leather Goods’ parent company, Spir- sion to open a store in his hometown, aer housing and utility expenses month’s Detroit Homecoming event, sign and e-commerce roles. it Leatherworks LLC, spent another Adler said. produced by Crain’s Detroit Business. Business for his store, the eighth $1.6 million on build-out for the store. “From a business point of view, per employee living downtown. He opened his 9,000-square-foot Will Leather Goods nationwide, con- Midtown Detroit Inc. spent about $1 people are seeing my crazy idea of retail space at 4120 Second Ave. (the tinues to grow, he said. million for shell and core work to the moving back to Detroit is not so crazy old Tom Boy Super Market) in Novem- “When we rst opened up, it was building, Executive Director Susan anymore,” he said. Total$73,840 estimated spending on dining ber 2015 — an outcome of Adler’s 2014 gangbusters (ahead of Christmas Mosey told Crain’s last year. Crain’s reporter Michael Lewis II downtown by store employees alone. participation in Homecoming, an 2015), but the rst quarter was slower. Adler, who was a theater major at contributed to this story. 16 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 DETROIT 2.0: HOMECOMING 2.0 OUTCOMES AT MOST UNIVERSITIES, Housing investment STUDENTS PREPARE FOR THE fund still in works By Dustin Walsh e company REAL WORLD. [email protected] declined to com- Despite a more than 14-month delay, ment due to U.S. )&3& 5)&: a $200 million fund to develop multi- Securities and family housing in the greater downtown Exchange Com- &91&3*&/$&*5 area of Detroit is still in the works. mission rules, but Chicago-based Capri Investment did con rm the Detroit isn’t just Wayne State Group began seeking institutional, rm is still active- University’s home — it’s who pension fund, endowment and foun- ly marketing the we are. Here, students gain an dation investors for the Detroit Urban fund. education in and out of the Investment Fund LLC in April 2015, fol- Gwendolyn e fund was classroom, applying new skills lowing the rm’s top executives’ in- Butler: Spoke expected to close through partnerships with nearby volvement in the inaugural Detroit about investment on its rst tranche hospitals, businesses and theatres. Homecoming event months earlier. in Detroit. of funding in July They conduct groundbreaking e plan involved raising funds from of 2015, but that research and exchange ideas with institutional investors to ful ll unmet never happened because of resistance students from around the world. demand for housing in the city’s urban from investors skeptical of the city’s When they leave, they’re ready to core, according to an oering packet ob- continued success, said Eric Larson, make the world a better place. And tained by Crain’s last year. CEO of Bloom eld Hills-based Larson it all starts in one of the nation’s Capri is seeking a minimum of Realty Group LLC and CEO of the most vibrant cities — Detroit. $5 million from each investor. Downtown Detroit Partnership. e project materialized after the “We have to remember, they are at- inaugural Homecoming event in 2014. tracting institutional dollars, and that’s Quintin Primo III, co-founder, chair- relatively new downtown,” Larson man and CEO of Capri is an alumnus said. “ey’ve needed to ... educate the of Cass Technical High School, and market that the momentum we have Gwendolyn Butler, vice chairwoman (in Detroit) is sustained. ” AIM HIGHER and chief marketing ocer, is a graduate Larson is closely following the fund wayne.edu of Mumford High School. Both were in hopes of securing investment in his speakers in separate sessions about in- rm’s redevelopment of the Tiger Sta- vestment opportunities in the city. dium site in Corktown.

Building a network of support for metro Detroit entrepreneurs. MAKE IT YOUR BUSINESS. neweconomyinitiative.org PN Full pg_DBpageAD.qxd 9/22/2016 5:05 PM Page 1 Thank YYou!

Crain’s Detroit Business, with the help of Downtown Detroit Partnership, was proud to convene Detroit Homecoming III on Sept. 14—16 where nearly 200 expats returned to Detroit to reconnect and reinvest. We are grateful to the companies and organizations that contributed to the success of the program.

GUIDING BUSINESS THROUGH SCIENCE

Thank you to all the vendors for their outstanding work in producing the many facets of Detroit Homecoming III.

Read all about the 2016 Homecoming III at detroithomecoming.com DBpageAD_DBpageAD.qxd 9/15/2016 2:19 PM Page 1

WHAT HAPPENS WHEN STREET meets smarts

Innovation drives the state of Michigan. Long known as a leader in automotive manufacturing, Michigan is also known as the hot spot for innovation. More than 75% of domestic R&D spending happens in the Great Lake State. It’s also home Ì º VÌÞ]» Ì i ÜÀ`½Ã wÀÃÌ ÀiÃi>ÀV v>VÌÞ `iÃ}i` expressly to test connected, automated and autonomous vehicles safely and rigorously in real-world settings. And with a growing talent base that includes leaders in cybersecurity, 1.888.565.0052 it’s clear that the minds of tomorrow can be found today in michiganbusiness.org/ Pure Michigan.

Where independents thrive.

[email protected] CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 19 DETROIT 2.0: HOMECOMING OUTCOMES Designer’s pop-up to o er Detroit-made goods

By Adrienne Roberts interest from Detroit expats living in [email protected] New York City. Even before Detroit native Michele For Varian, a graduate of Cass Tech- Varian attended her rst Detroit nical High School, the pop-up was Homecoming, she brought a little bit more than just a way to promote the fresh. family. of the city’s swag to the Big Apple with work of Detroit designers. a pop-up shop within her New “I design and manufacture in New York store featuring De- York City, but I also carry the troit-made products. work of 100 other product at shop, called Detroit designers and jewelers (at Built, is targeted to take res- my shop),” said Varian. “All idence in Detroit in Novem- of the makers and designers ber, though the location are being displaced, and a isn’t quite nalized. lot are coming to Detroit be- At the same time, Varian, cause they can’t aord New a two-time Detroit Home- Yo r k .” coming attendee, will host She said that as rents have the Detroit Built shop at her Michele Varian: increased in New York, de- home goods boutique To feature Detroit signers and makers have (called Michele Varian) in goods in SoHo. been forced to move fre- New York’s SoHo neighbor- quently, and manufacturing hood. It features her own in New York has become less collections of wallpaper, textiles, light- reliable. Nearly four years ago, Varian ing and furniture, as well as products explored the idea of manufacturing in from other makers. Detroit. What she found was a large When Varian launched Detroit manufacturing presence accustomed Built two years ago, she featured for to working with various mediums — two months products from 30 De- but almost exclusively focused on the troit-based designers and makers, automotive industry with little capaci- such as Detroit Denim, Rebel Nell and ty to manufacture other products. In Bon Bon Bon. e shop received lots of SEE POP-UP, PAGE 22

Michigan State University is connected to Detroit through its many alumni, MSU Extension programs, arts and economic development initiatives, and partnerships in teaching and education. But what

JOSHUA JOHNSON Spartans love most about the city are Detroiters. MSU College of Education students like Joshua Johnson take internships and fully Class of 2017 immerse themselves in Detroit’s beautiful community. We couldn’t be prouder of Joshua, and what he did at Detroit’s Freedom School thanks to the College of Education’s Urban Immersion Fellowship.

LEARN MORE AT EMPOWER.MSU.EDU DBspreadAD_DBspreadAD.qxd 9/15/2016 10:39 AM Page 1

AN EXCERPT FROM THE KRESGE FOUNDATION 2015 ANNUAL REPORT Culture The Landscape for Revitalization Arts & in Detroit is Stronger than Ever

At the end of 2015, Detroit was ﬁscally stronger than it had been in many years.

Kt¨«t¼¶¬Àt_«Ņ²tm²Àtt«tp«_k_«¶¨²mÀ²_²m¶p_¼t«tp²t_ŬÈ¬m_ Detroit limbo. There was an immediate moment of optimism, followed by the unavoidable question of ¾t²t«²m¶p_¬²Ŋ4_À²¬_²t«Ņ²t_¬¾t«¬_ª¶_ÈtpŷÀt¬ŊŸ the There is a palpable sense now that further progress is at hand. We can cite the leadership of Using Mayor Mike Duggan and partners in Washington and Lansing. We can cite Detroit residents, old and new, working in their neighborhoods. Across that spectrum, Detroiters are forging a culture of conﬁdence — a belief that this city can offer an opportunity-rich

for Education Right Tools future for everyone. Kresge works to advance this vision by working in multiple areas. Looking back at 2015, a signal Social Change neighborhood initiative and our transit work seem to capture the breadth of our ambition and hopes. We are sowing the seeds of revival far and wide through Kresge Innovative Projects: Detroit, a three-year, $5 million initiative. To date we have awarded grants for 39 neighborhood projects: k²ŷ¬¼tŬ«t_pÀŸ²_²m_kt¨tt²tp_k¶²_Àt_«ź¬²tŅ_p²¨«¬pt_¬

2015 Annual Report that are still in the planning stages. Success of these projects has been swift and impactful — Environment from converting abandoned buildings and vacant lots for new purposes, to park rehabilitations and engaging high school students in entrepreneurship and revitalization efforts. We look to increasingly light up the map of Detroit with the reality of positive change through this initiative.

4t_¾tŅĐŊĐt¬Vp¾_«p¼t¶tŅ/«t¬tź¬ƒĒč¼t¬²t²²t4ŬĎE(2 streetcar line is taking shape. We can already see economic development along the route where ²tÈ«¬²¨_¬¬tt«¬¾«ptďčĎĔŊ4ŬĎE(2ź¬«t_¬²tm_²_ÀÄÈ«¬²t_«t_¬À¬²t¬ ¬pŅ¾²²t¨«¬t_«kttÈ²¬««t¬pt²¬t²«²ź¬ĎĐĖ¬ª¶_«tt¬Ū_pktÀp²

the metropolitan region that includes Wayne, Oakland, Macomb and Washtenaw counties. Health

AN EXCERPT FROM THE KRESGE FOUNDATION 2015 ANNUAL REPORT Culture The Landscape for Revitalization Arts & in Detroit is Stronger than Ever

At the end of 2015, Detroit was ﬁscally stronger than it had been in many years.

the metropolitan region that includes Wayne, Oakland, Macomb and Washtenaw counties. Health

To that end, our regional transit focus in recent years has been targeted toward crucial public education activities to build awareness of the need for — and promise of — high- quality regional transportation. Services We are encouraged and optimistic Human that the landscape for revitalization is stronger than ever through projects . Read the report at 2015annualreport.kresge.org modest and massive, concentrated To receive a copy, send name and mailing address and dispersed — and all mutually to [email protected] . reinforcing for a better future. 22 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 DETROIT 2.0: HOMECOMING OUTCOMES POP-UP Detroit ‘makers’ FROM PAGE 19 Some of the Detroit-based other words, Varian found a talented, “makers” featured in the rst yet aging and shrinking manufactur- Detroit Built store: ing community. Lead Head Glass — terrariums As part of her Detroit Built pop- up she’s working on for this fall, Detroit Denim Co. Varian plans to talk with the fea- Detroit Rose Candle Co. tured designers about growing the Alex Drew & No One — furniture maker community in Detroit by mentoring youths and promoting Hunt & Noyer Woodworks creativity to grow the city’s manu- Smith Shop — metalwork facturing capabilities. Trice Clark — jewelry She said she feels that Detroit children aren’t getting exposure to Homes Eyewear the arts because “it’s hard to en- Quetarshe Textiles courage children to do something Rebel Nell — jewelry that won’t give them a secure return.” Ciseal — bent plywood furniture “I just wish I had been exposed to Bon Bon Bon — chocolates what I love earlier,” Varian said.

WHERE INSPIRATION GATHERS. WELCOME BACK. fortebelanger.com | 248.712.1336 | Detroit • Troy

MICHELE VARIAN Michele Varian will host the Detroit Built shop at her home goods boutique in New York City’s SoHo neighborhood.

Happy Tree transitions AMAZING NEIGHBORHOODS more business to Michigan SURROUNDING DETROIT’S GREATEST By Bill Shea Happy Tree also has begun using SPORTS AND ENTERTAINMENT VENUES [email protected] Michigan-based rms for its business e Detroit Homecoming was functions: Entrepreneur-focused FURTHERING DETROIT’S COMEBACK STORY Gun- transformational for metro Detroit derson Dettmer Stough Villeneuve @DistrictDetroit #DistrictDetroit LED BY THE ILITCH COMPANIES expat Ari Tolwin. Franklin & Hachigian LLP is the bever- DistrictDetroit.com e Southeld native and age company’s law rm, and it uses co-founder of New York-based Happy Southeld-based tax rm Zigdon and Tree maple water — a maker of raw, Associates PC. organic beverages harvested Additionally, Happy COME HOME,BE AMAZED. in early spring from maple Tree has taken oce space trees — said attending the in Detroit’s Madison Build- 2014 event prompted him to ing for one staer to do begin planning to transition marketing and distribution as much of his business to work in the region. Plans Michigan as he can. are in the works to add a “It was an awesome event second full-time Detroit in terms of our direction in a employee and interns in tactical way, in investing in the future, Tolwin said. Southeast Michigan,” he Ari Tolwin: Maple Happy Tree also has four said. “Anything we can water proponent. employees in New York, spend there now, we spend.” two in California. LIVE WORK LEARN PLAY Perhaps the most major He won a pitch competi- transition is Happy Tree’s decision to tion at the second Detroit Home- nd a Michigan-based bottle maker. coming last year that helped fuel the Tolwin said the company is in talks Michigan work. with a beverage bottle maker, but a Tolwin declined to discuss sales deal isn’t yet signed. e process to revenue but did say he expects change bottles takes about a year once growth to quadruple next year after a deal is signed, he said. It involves us- doubling the past two years. ing up existing stock and designing A year ago, his water products and testing the new bottle and label. were not available in Michigan. Now Happy Tree now has four products they’re in 50 stores in the state and sold in plastic bottles: e basic maple more than 2,000 nationwide. water, and lemon, ginger and cold- “It helps to play at home,” he said. brew coee avors. A pomegranate Tolwin, 34, and his brother SHOP DINE RELAX STAY avor is in the works. launched Happy Tree in 2014. DBpageAD_DBpageAD.qxd 9/16/2016 12:31 PM Page 1

SCIENCE ENHANCES THE WORLD. FROM DETROIT. At Urban Science, we use science to guide our global automotive industry client partners to increased sales, proﬁt and customer loyalty. At Life Beyond Barriers, we use science to create life-enhancing solutions to overcome physical challenges. At the Anderson Institute at Wayne State University, we use science to foster entrepreneurialism leading to new companies and new jobs. No matter how we do it, we will always use science to improve our world. And no matter where it happens, it will always start here, at home — in Detroit. Join us in inventing our city’s future,

Jim Anderson Founder, President, CEO

® 24 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING OUTCOMES

CHRIS EHRMANN Wendy Hilliard held an open house at the Joe Dumars Field House in Detroit on Sept. 17 to announce her new gymnastics program in the city, which will operate out of MARKETING & EVENTS the eld house for now. Former Olympian WITH A PURPOSE Hilliard considers former fairgrounds By Marti Benedetti scholarships,” she said. Hilliard has [email protected] three locations in Harlem, where the 4219 Woodward Avenue, Ste 304, Detroit, Michigan jrturnbull.com Former Olympian Wendy Hilliard foundation has oered classes for 20 is scouting Detroit's former Michigan years and has served more than Photo by Len Katz, Detroit Jazz Festival 2012 State Fairgrounds for a home for the 17,000 children, developing athletes gymnastics center she wants to open and international gymnastics per- in her hometown. formers. “But we can't move Detroit native Hilliard's nonpro t forward until the rede- organization provides velopment is nalized looks for a free and low-cost gym- there,” said Hilliard, minimum of nastics classes for un- who has been looking derserved urban youth for locations with her 15,000 sq. . for ages 5-17. Four Saturday husband, Bobby Men- gymnastics classes in Detroit will sah. cost $50 a month, and e founder of the school scholarships are avail- Wendy Hilliard Gymnas- able to those who can- tics Foundation in New not aord to pay. York City’s Harlem said she is looking Hilliard said two Michigan compa- for a minimum of 15,000 square feet nies have already jumped in to help. for her school that likely will cost more Envirolite, a Troy-based provider of than $1 million. “Equipment alone specialized and technologically ad- costs $500,000,” she added. vanced foam products, has donated Thanks to thousands of generous individuals, families and businesses, the is year, during Detroit Home- $6,000 worth of new carpets, mats and Community Foundation for Southeast Michigan is a permanent source of coming week, Hilliard had an open other equipment. Mt. Pleasant-based community capital, dedicated to creating lasting positive benet in our region. house at the Joe Dumars Field House Tumbl Trak, a gymnastics equipment Through grantmaking, education and leadership on community issues, we in Detroit to announce her new gym- company, also will provide a variety of nastics program in the city, which will equipment. help improve the quality of life for all residents of Southeast Michigan. operate out of the eld house for now. Hilliard got her start in gymnastics cfsem.org. 1-888-WeEndow Young people received compli- in Detroit. mentary gymnastics lessons, and par- “I learned my gymnastics from the ents had an opportunity to register Detroit Recreation Department, their children for the classes. Hilliard taught by excellent coaches, and it talked about her experience as a gym- changed my life,” she said. She uses nast and shared stories on her visit to the sport to teach good health, disci- this summer’s Olympics in Rio de Ja- pline and other skills that boost con - neiro. dence. “Gymnastics is one of the most e rst Detroit Homecoming two popular Olympic sports, but it is ex- years ago set the wheels in motion for pensive and not very accessible in ur- Hilliard to consider opening a gym- ban areas.” nastics program in Detroit. At last Hilliard was a member of the U.S. year's Homecoming, she announced Rhythmic Gymnastics National Team she was expanding her foundation by a record-setting nine times, but early opening a satellite oce in Detroit. in her career she had to ght for her “e Homecoming event had quite spot on the team. an impact on me (thinking about In 1983, she was denied a spot on starting a program here),” she said. She the World Championship group rou- added that she is no stranger to the tine. e coach said that she “stood city; her home away from home is her out too much” for the synchronized mother's Detroit house. event. Hilliard challenged the deci- “Our headquarters is still in Har- sion, and U.S.A. Gymnastics then se- lem, but we have a foundation oce in lected the team based on the ranking Detroit because we want to set up a from the National Championships, fundraising stream here for Detroit putting Hilliard on the team. PN Full pg_DBpageAD.qxd 9/20/2016 1:57 PM Page 1 26 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING OUTLOOKS Fascination with Detroit illustrated by its popularity in books, movies

By Marti Benedetti [email protected] See 'Generation Startup' Maybe the Motor City should add a couple of new nicknames: the Book City and the Movie City. “Right now, Detroit is on the hot list,” said Janet Jones, owner of Source Booksellers in the city’s Midtown Educating Detroit’s future leaders neighborhood. “I don’t have all the udmercy.edu books because I carry only non ction books ... but I still have lots of books about Detroit.” Pages Bookshop in the city’s Grand- Academic Excellence. Vibrant American City. mont-Rosedale neighborhood now has three bookcases full of ction and GENERATION STARTUP Service-based Values. Exceptional Outcomes. non ction Detroit books. “ere are Dextina Booker is a Venture for more Detroit books than ever, and it’s America fellow featured in the because there is a fascination with De- documentary. troit as a comeback city,” said store owner Susan Murphy. The “Generation Startup” Detroit’s unique manufacturing documentary on Venture for history and its multifaceted music America entrepreneurs in Detroit scene have always made Detroit an in- will be shown seven times starting teresting topic for storytellers. e Oct. 7 at the Detroit Film Theatre city’s unparalleled economic down- at the Detroit Institute of Arts. fall, bankruptcy and recent comeback Showtimes are 7 p.m. Oct. 7-8, 2 have ramped that interest higher. p.m. and 5 p.m. Oct. 9, and 9:30 p.m. Filmmakers motor in Oct. 14-15. Each showing includes a question-and-answer opportunity For one group of lmmakers, entre- with the lmmakers and the preneurship in Detroit was the draw. subjects. Tickets are available at “Generation Startup” is a docu- tickets.dia.org for $11. mentary that follows a group of mil- PERSONAL lennial entrepreneurs in the Venture A Great Time BANKING for America program, which connects pressed a similar sentiment. He was in recent college graduates with jobs at Detroit during Detroit Homecoming II startups. and premiered multiple segments of to Choose Talmer. e lm premiered at the Traverse his documentary “Gotta Keep Dream- City Film Festival in August and will be in’,” which focuses on the city’s entre- shown six times starting Oct. 7 at the preneurial spirit As your community neighbor, Detroit Film Theatre at the Detroit In- and resurgence. we invite you to check out stitute of Arts. Funding for the lm Last October, came from the PwC Charitable Foun- Bolton expected Talmer Bank and Trust. BUSINESS dation Inc. and UBS. e Davidson to nish the lm We’re a proven performer BANKING Foundation provided a grant to help in time for the support the lm’s marketing and out- Sundance Film delivering the kind of trusted relationships, reach. Festival in Janu- conﬁdence and e lm was made by New York ary. However, an City lmmaker Cheryl Miller Houser. update revealed local, personal service She spent 17 months in Detroit start- Michael Bolton: “we are excited to you deserve. Stop by, call ing in 2014, charting the progress of Finishing his be nalizing the ve business startups. VFA operates in documentary on lm now and or visit online today, and 15 cities, but to Houser, “there was no Detroit. planning for its let us show you what MORTGAGE question Detroit was the most inter- imminent re- esting of them all. It is a city built on lease,” Christina Kline, Bolton's man- Talmer can do for you. entrepreneurship 100 years ago. What ager and co-producer of the movie, it takes to be an entrepreneur is grit said in an email. and resilience, and Detroit is de ned Another documentary, “Live An- by grit and resilience.” other Day,” which premiered at the- Even in 2014, when the city was in aters in September, examines the bankruptcy, Houser said, “we could causes and eects of the auto collapse feel the hustle.” and subsequent bailout. It was created WEALTH She said despite what seems like by Didier Pietri, a former Disney and MANAGEMENT the golden age of startups, entrepre- ABC executive, and Bill Burke, a for- neurship is at a 25-year low for 18- to mer Turner Broadcasting and Time 34-years-olds. She would like to help Warner producer and executive. change that trend. At this year’s Homecoming, Last year, singer-songwriter and 800.456.1500 | talmerbank.com EQUAL HOUSING LENDER co-producer Michael Bolton ex- SEE BOOKS, PAGE 28 DBpageAD_DBpageAD.qxd 9/15/2016 3:01 PM Page 1

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

As a sponsor of the Detroit Homecoming event, DTE Energy is encouraging more engagement and investment in the city. We’re doing our part by continuing to strengthen our charitable contributions to the communities in which we live and serve. In 2015, the DTE Energy Foundation donated $15 million through grants to support neighborhood safety, community revitalization, employment, education, environmental stewardship, and economic progress. We are committed to helping re-energize Detroit.

The DTE Energy Foundation is proud to support Detroit Homecoming. 28 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING OUTLOOKS

BOOKS Detroit pages FROM PAGE 26 A selection of Source Booksellers’ top-selling Detroit books: attendees had an opportunity to see Mapping Detroit edited by June Manning Thomas and Henco Bekkering. “ e D,” a micro-documentary by Al- Yamasaki in Detroit: A Search for Serenity by lee Willis, a multi-disciplinary artist Detroit Free Press reporter John Gallagher. who has won many awards as a song- Detroit Resurgent: Portraits and Proles of writer, including a Grammy, Emmy Detroiters by Gilles Perrin and Nicole Ewenczyk. and Tony. Willis’ well-known songs include Canvas Detroit by Julie Pincus and Nichole Earth, Wind & Fire’s “September,” and Christian. “Boogie Wonderland” and e Pointer The DSO: Grace, Sisters’ “Neutron Dance;” and she is a Grit and Glory by co-writer of the Broadway musical Laurie Lanzen “ e Color Purple.” Harris with Paul At Homecoming III this year, she Ganson. showed a short video valentine featuring a song she wrote for the city called Beer Money by Frances Stroh, a member of the “ e D.” More than 5,000 people beer-making family whose fortune was made showed up for group sings throughout and lost. the city that she videotaped for the val- The Underground Railroad: A movement that entine and a longer video project. Changed America by Evelyn Millstein. Also shown at Homecoming this Great Girls in Michigan History by Patricia year was a Detroit-made ctional lm, Majher. “Destined,” featuring a young Detroiter AARON ECKELS created a one-woman show that’s an homage to her hometown, Detroit. who lives out two dierent destinies Allee Willis after his adolescence. Qasim Basir, an honoree in Crain’s 20 in their 20s rec- best, including Detroit Anthology edit- thor will bring in a book. David Maraniss, an associate editor for Emily Nowak, Wayne State Univer- ognition program in 2006, won a best ed by Anna Clark; How to Live in De- “ ere’s just more Detroit books e Washington Post who was a panel- sity Press marketing and sales manag- director award, and Cory Hardrict won troit Without Being a Jackass by Aaron coming in than in the past,” she said. ist at last year’s Detroit Homecoming. er, said the city’s rebirth is having a pos- best actor at the 2016 American Black Foley; and the small history books by e Detroit books are not just being Jones said authors and people buy- itive impact on the press. “We are Film Festival for the lm. Arcadia Publishing. She gets her books written by local authors. Examples in- ing the books are trying to make sense getting more interest and book propos- from , clude Detour in Detroit by Italy-born of what is happening in Detroit. “Some als,” she said. The book scene Wayne State University Press Michigan Publishing (the University of Francesca Berardi, now a New York- of these books are of the moment. As a “I think the books will keep com- Among Detroit-centric books, Mur- Michigan’s press), other publishers based journalist; and Once in a Great book seller, I’m interested in the lon- ing,” Jones said. “Detroit is an exciting, phy said general Detroit topics sell and, occasionally, a self-published au- City: A Detroit Story, by Detroit native gevity of a book.” innovative city that is coming back.”

WE ARE PROUD TO SUPPORT THE 2016 DETROIT HOMECOMING

The W.K. Kellogg Foundation has partnered with Detroit for more than 80 years. We support grass tops and grass roots organizations that are strengthening entrepreneurs, increasing access to healthy food for families and delivering quality early childhood education to children. DBpageAD_DBpageAD.qxd 9/9/2016 10:57 AM Page 1 DBspreadAD_DBspreadAD.qxd 9/14/2016 11:34 AM Page 1 gm. gm g m com co o

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General Motors proudly supports Detroit Homecoming 2016. The Motor City is our hometown and an integral part of our history. GM is committed to strengthening our communities through improved access to quality education and fostering the local workforce, but we know we can’t accomplish it all on our own. Thank you for showcasing the transformation and revitalization in Detroit and encouraging continued growth in our city. DBspreadAD_DBspreadAD.qxd 9/14/2016 11:34 AM Page 1 gm. gm g m com co o

©2 ©20 © 2 16 1 Gen G en era er e r l M M M otoot o t rs. rs Al Al l l r ighig gh g h tst s r res re e s erv e ed. ed e d

General Motors proudly supports Detroit Homecoming 2016. The Motor City is our hometown and an integral part of our history. GM is committed to strengthening our communities through improved access to quality education and fostering the local workforce, but we know we can’t accomplish it all on our own. Thank you for showcasing the transformation and revitalization in Detroit and encouraging continued growth in our city. 32 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING OUTLOOKS

WELCOME HOME

Why does Honigman believe so deeply in a resurgent Detroit? COURTESY OF PROJECT DESTINED Detroit native lmmaker Qasim Basir (back row, far le ) and investor Cedric Bobo (back row, second from right) are part of the leadership team for Project For 68 years, we have proudly been at the heart of Detroit’s greatness, Destined, which gets high school students from Detroit involved in a resilience and resurgence as our clients turn to us for sound legal and commercial real estate project. business counsel. They are the deeply committed men and women ready to take the creative risks, launch new ventures, and realize the dreams on which a great city depends. Project Destined gives We hope that you will join us and become a part of the shared vision for the Detroit of the future. Detroit students real estate experience WWW.HONIGMAN.COM Kirk Pinho ung concept [email protected] propagating ab- A couple of months ago at a cock- stractions. tail party, investor Cedric Bobo knew “It’s one he had met Detroit native and lm- thing that if I maker Qasim Basir somewhere in just go and the recent past but couldn’t quite teach a kid that pinpoint it. investing is Cedric Bobo, the investor, and Qa- great and I put sim Basir, the lmmaker, got to you in a class talking, and Bobo ended up seeing Qasim Basir: and I run o Basir's lm "Destined,” (See story, “Let’s not be back to Wall Page 26). victims here.” Street,” said Now the men are helping 15 high Bobo, a former school students from Detroit pin- principal with Carlyle Group focusing point a real estate project in the city on rail, shipping and security. “What for them to get experience in the en- if I actually gave you capital, $100,000, tire gamut of the process, from acqui- you invest it, and you get to have a sition to design, nanc- percent of the pro ts? ing to construction. Now, I have something, Basir, a Wayne State Pair aim cool, fun, competitive, University graduate and to expose and it could actually 2006 Crain’s 20 in their make money, and tan- 20s honoree, discussed teenagers gible.” the eort — which uses to career and “A lot of times, as it re- the $100,000 initial start- lates to African-Ameri- up funds from Bobo plus investing can people, gentri ca- other investors from Abu possibilities tion means that they are Dhabi, Lagos and Lon- — and give getting pushed out,” said don — at Detroit Home- Basir, a Wayne State Uni- coming earlier this them a stake in versity graduate and month. the outcome. 2006 Crain’s 20 in their Bobo and investors 20s honoree. “Let’s not will retain ownership of a be victims here. Let’s get limited liability compa- involved. Getting in- ny formed for the project, but they plan volved means we are also going to own as part of the contract to commit part of property here and are also going to de- any pro t from the yet-to-be-decided velop it so that, by the time these stu- project to a scholarship fund for the dents go to college, we are going to be participants. able to say that we own property in De- Project Destined, which takes its troit and we are helping to bring it name from the lm, is a yearlong b a c k .” course that started this month that e students are working with gets Detroit students from Cass Tech- professionals from Detroit-based nical High School, Renaissance High Hamilton Anderson Associates, Jen- School, the Jalen Rose Leadership kins Construction Co. and other De- Academy, Roeper School and Detroit troit-based companies as they go Country Day immersed one Saturday about budgeting, executing and a month in a one- to two hour session managing the project. that includes site visits, meetings Eventually they will determine the with architects and developers and long-term strategy for it — whether contractors and even a visit to a bank to sell it, maintain ownership or rent for a mortgage application. it. Eventually, this is a project that But Project Destined isn’t just an Bobo and Basir would like to contin- intellectual exercise or some far- ue and take national. CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 33 DETROIT 2.0: HOMECOMING OUTLOOKS Fadell: Detroit’s auto U-M CELEBRATES DETROIT’S HISTORY, IMPACT, AND FUTURE

industry challenge Two hundred years ago, the “University of Michigania” was founded in the city of Detroit. Today, as U-M prepares to celebrate our bicentennial year, our Detroit engagement is stronger than ever, comes from within encompassing community outreach, faculty research, and student internships. Visit detroit.umich.edu for information on programs and resources. By Dustin Walsh [email protected] Detroit’s automotive industry is in reformation. Grappling with the reali- ties of rapid technological advance- ments and rubbing against the “app culture” in Silicon Valley, the industry is working with Silicon Valley’s tech leaders and buying up startups in the new eld of mobility. e challenge for the auto industry is to replicate the environment of De- troit a century ago, when it was a hot- bed of innovation. Tony Fadell, creator of the iPod and former CEO of internet of things company Nest Labs, said Detroit is faced with the paradox of manufacturing with metal in a digital world. “You’re in the nascent stages of (connected and autonomous) cars,” U-M Detroit Center,located in Orchestra Place President Schlissel at the Detroit Project Day rally Fadell, an alumnus of Grosse Pointe South High School, said in an interview at the Detroit Homecoming event earlier this month. “You’re not building AARON ECKELS an ecosystem … yet. Will your major Tony Fadell is creator of the iPod and industry build startups like it used to?” former CEO of Nest Labs. at happened during the dawn of the automobile. Detroit became the Motor City for a Fadell’s go-kart number of reasons. Timber was ample manufacturing may throughout Michigan, iron ore was plen- tiful near the rail lines from the Mesabi be headed to Detroit Range in Minnesota to Marquette and, The latest venture for Tony Fadell, most of all, Henry Ford and Ransom Olds creator of the iPod, is California- built a larger manufacturing landscape based Actev Motors, a builder of with a feeder chain of parts makers. connected go-karts, earlier this ;,)2%0063%(70)%(,31) Oldsmobile led the push to subcon- year — and it might be on its way tract parts production in the early 20th to the Motor City. ;)Ş000)%:)8,)0-+,8732*36=39 century, thus creating the industry’s The $999 go-karts are connected supply base. Nowadays, they’d call it to the internet and cater to an “ecosystem.” children ages 5-9. The carts went e industry must now nd a way into production in China last week. to build new companies for a new Fadell said the plan is to bring nal world, Fadell said. assembly to the U.S., hopefully in So far, it’s working the other way Detroit. around. General Motors Co. acquired Cruise “They are expensive to ship (from Automation, a maker of autonomous China),” Fadell said. “It should be vehicle tech, for more than $1 billion in able to be done here; it’s just a March. It invested $500 million into matter of time.” car-sharing service Ly and later Fadell, in a chat with Autoweek launched its own service called Maven. Publisher Dutch Mandel at the Ford Motor Co. founded a subsidi- Detroit Homecoming, said Actev is ary, Ford Smart Mobility LLC, which part of the technological tapestry acquired San Francisco ride-sharing representing where cars are going rm Chariot. It also partnered with Uber and what Detroit needs to succeed to test autonomous Ford Fusion taxis. in the future of mobility. Last year, South eld-based Lear That happens by refocusing on the Corp. acquired automotive connectiv- future of automotive — like car ity rm Arada Systems Inc. and intellectual property and technology from sharing, electrication and autonomous cars. Autonet Mobile Inc. to push into the connected-vehicle market. “Today, you don’t buy just one pair e true mark of success is when of shoes, but that’s what you do the opposite happens, when Ford or with a car,” Fadell said. “Now, we GM or Lear spin o a tech company can get a pickup from Uber. And that supports the industry’s quest to- today I may need a compact car, ward mobility and the car is no longer but a van tomorrow. Consumers 4639(%:44639(%:4%682)63*%682)63* a car and the industry is no longer only are going to be choosing that pair automotive and Detroit is no longer of shoes that ts the need. That’s ()863-8,31)'31-2+()863-8,31)'31-2+ only the Motor City, Fadell said. the dramatic change coming by Dustin Walsh: (313) 446-6042 2035.” 46)1-)6):)288)',2)84 Twitter: @dustinpwalsh 34 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING OUTLOOKS Autonomous cars could drive Detroit job growth Detroit put the world on wheels, and now the region is the epicenter of the next generation of mobility. But Detroit is not mobile. More than a quarter of Detroit households don’t own an automobile, ranking eighth among the 30 largest cities in the U.S. behind only cities with DUSTIN WALSH robust mass transit systems, such as [email protected] Chicago, New York City and Washing- Twitter: @DustinPWalsh ton, D.C., according to a 2014 study by the University of Michigan’s Transpor- work just to match the state average of tation Research Institute. labor force participation. As the automotive industry rapidly e automotive industry holds the transforms from traditional cars and solution. trucks to connected and autonomous Over the past few years, and espe- “living rooms on wheels,” the city of cially in the past 12 months, the local Detroit is presented with a great chal- automotive industry has ramped up lenge. eorts to make car-sharing, electrica- But what better place to test a tech- tion and self-driving vehicles a reality. nology that will change the world? But these technologies are, depending Imagine automakers on who is talking, a and suppliers creating number of years from low-cost, or even free, For many major mass market commer- services for low-income metropolitan cialization or protabili- Detroiters while proving ty. theories. Engineers be- areas, jobs are But the testing is on- hind the wheel and peo- more available going, and research and ple with a real need to development is crop- reach a destination as within the city ping up all over South- passengers. e industry limits for its city east Michigan. gets validation of its tech- e state is closing on nology and the public residents. the sale of 300 acres at gets a service. Not so in Willow Run in Ypsilanti ese services could to create an $80 million allow the industry to do Detroit. testing hub for connect- good while doing good ed and driverless cars work — particularly called the American Cen- when the image of automotive is at an ter for Mobility, which is expected to all-time low in the wake of recall scan- open in 2018. UM opened its MCity dals and record prots. early testing facility for the same tech- Since our beginnings in Detroit in 1924, Barton Malow has built and Let’s start with the problem. nologies last summer. renovated millions of square feet of facilities in the great City of Detroit. e city’s mass transit options are General Motors Co. acquired driv- terrible, even if it’s gaining a new rail erless car tech rm Cruise Automation We proudly constructed oces where Detroit does business, factories line and potentially a new rapid transit for $1 billion, invested $500 million where Detroit manufactures, arenas where Detroit cheers, hospitals bus line. For many major metropoli- into San Francisco ride-sharing ser- tan areas, this may not be the biggest vice Ly, launched its own car-shar- where Detroit heals, and schools where Detroit learns. issue, as jobs are more available within ing service Maven, all earlier this the city limits for its city residents. Not year. BUILDING BUSINESS. BUILDING COMMUNITY. so in Detroit. Maven oers customers a eet of Of the 258,807 jobs existing in the new vehicles on demand, for use in ex- city, 71 percent are held by employees change for an hourly fee. It has more BUILDING DETROIT. commuting from the suburbs, accord- than 5,000 registered members. ing to a 2015 report by the Corporation “We found, with the actions we’ve for a Skilled Workforce and funded by taken over the last year, the role we’re J.P. Morgan Chase & Co. at’s only going to play (in the auto business) is 0.37 jobs for every resident — abysmal going to change remarkably,” GM compared with other cities. President Dan Ammann said at De- For instance, Atlanta has 818,462 troit Homecoming earlier this month. jobs in its city and a population of “It is our intention to dene mobility. 447,848, or 1.83 jobs for every resi- We’re taking that deadly seriously, and dent. Cleveland has a population of we’re going to win.” 394,335 and 466,305 jobs, or 1.2 jobs Maven recently launched one-way for every resident. ese cities must car-sharing service in Southeast Mich- attract workers from the suburbs to igan with rates as low as $3.50 per half ll jobs. hour. A user could get from downtown In Detroit, 108,000, or 61 percent of Detroit to Detroit Metropolitan Air- employed Detroit residents, travel out- port for as little as $5, compared with side the city for their jobs, according to more than $40 for a taxi. the Corporation for a Skilled Work- Ford Motor Co. created a mobility force study. Roughly 46 percent of subsidiary, Ford Mobility LLC, and be- those travel more than 10 miles from gan testing driverless cars in Pitts- home, the study said. Unreliable trans- burgh with Uber last week. Uber then portation options for the city’s resi- announced it was opening an oce dents precludes many from nding in Detroit to partner with local auto- those jobs in the suburbs. makers. e harsh reality is that the city Google is opening an automotive needs to put 49,000 of its residents to SEE GROWTH, PAGE 35 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 35

GROWTH LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES FROM PAGE 34 testing facility in Novi, and Apple already has a small o ce in Birming- ham. More than 125 miles of highway and streets, including some in the city of Detroit, are equipped with Lear Corp. sensors to connect vehicles to the infrastructure, such as stop- lights. “It’s incredible what’s happened in Best bank...6 years running. the last year,” said Glenn Stevens, executive director of automotive economic development group MichAuto. “Michigan has 49 connected car proj- Best-in-class products. ects. is is where the conversation about mobility is happening.” We have thousands of people with a need to be mobile, to get to work, and Best of all… dozens of companies looking to test the parameters and capabilities of its new mobility solutions. e city’s best chance came, and local decision making. went, with the $50 million Smart Cities Challenge, the U.S. Department of Transportation contest to help a city transition to a “smart” transportation system. Columbus, Ohio, won. Detroit wasn’t even a nalist. As a Michigan-based bank, we’ve been getting to work helping businesses since 1917. By providing area expertise and loan Giving the city residents mobility decisions that come out of our local offi ce and not out-of-state, our services are enhanced to optimize cash fl ow and fi nance “would be easily within our expertise,” growth to help businesses move forward, even faster. And with best-in-class banking resources like Positive Pay, Business said John Maddox, president and CEO Express Deposit and SBA loans, you’re always banking big…even when you’re banking local. of the state’s American Center for Mobil- ity project. “e critical piece is leadership,” he Learn more about how big doesn’t always mean best. said. “e Smart Cities proposal still has Give us a call today. a nicely dened need and technology www.thefsb.com/business | 866-372-1275 approach framework we could do in De- troit, but the city needs to be the leader.” *Voted “Best Bank” by 4HJVTI+HPS`readers (2011: 3rd; 2012: 1st; 2013: 1st; 2014: 1st; 2015: 2nd; 2016: 1st) Detroit’s Smart Cities proposal called for the connected, driverless and electric vehicle eets along with car- and bike-sharing programs. ey key initiative was to create a “Mobility Passport” to provide a statewide single point system to request and pay for a ride, parking and other mobility access. Partners in the proposal were Ford, GM, the Michi- gan Department of Transportation, UM, Bosch, Denso, DTE Energy, the city of Detroit and dozens of others. EstateTax Experience ese groups came together to make the proposal and it shouldn’t end with ® the failed bid. ese groups must con- In Your Corner. tinue the conversation. It’s too important to the continued revitalization of a great American city. Ŷ Estate planning, trust administration, Maddox said the city is interested in and estate taxation. mobility projects, but the demands of running a city take precedence. Ŷ Reviewing and critiquing appraisals of “is is a hard thing to accomplish businesses and real estate, Previously when the immediate needs of xing bridges, xing roads, xing infrastruc- worked for the Internal Revenue Service. ture is an all-consuming activity,” Maddox said. “It’s doable, but it’s going to be a heavy lift.” MichAuto’s Stevens said early talks are happening about how to use the region’s mobility transformation to benet the city, but he declined to go into detail. “We have identied a group of organizations that are working toward the common goal of enabling Detroiters to get to work,” Stevens said. “Detroit is a great test bed for public and private partnerships to come to a common goal.” e importance of this moment in First Tier Ranking our region’s history mustn’t be over- Trusts & Estates looked. ere is a need and a solution. Let’s come together to create a new Detroit — still on wheels, but for every- Contact Michael J. Mulcahy at [email protected] Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings one. 36 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

DETROIT 2.0: HOMECOMING OUTLOOKS Detroit Children’s Fund gets boost with new pledges

By Sherri Welch A $10 million pledge from Levinson Allen. e foundation is providing additional gifts and a target should be [email protected] helped launch the fund, an aliate of stang and nancial support to help announced by the end of this year. e Detroit Children’s Fund, a non- the Detroit-based Skillman Founda- operate the fund. But some of the gifts KC Crain, executive vice president prot venture fund that plans to invest tion, two years ago at Homecoming. have been as large as $10,000 or more. of Crain Communications Inc., chairs in proven educational systems and But that year, he was stuck in Japan and While gifts made to the fund are tax the children's fund board; Crain’s De- models in Detroit, got a huge boost could not be in Detroit for the event. deductible, as it is a nonprot, “the troit Business Publisher Mary Kramer during the 2016 Detroit Homecoming is year, Levinson took to the stage way it will execute and use its capital is a trustee on Skillman’s board. event when the donor who seeded the on the second day of Detroit Home- will have more of a venture-like phi- In addition to his oer to match fund stepped up once again. coming and said he’ll match every gift losophy,” she said. gifts to the fund, Levinson also paid Adam Levinson, managing partner made to the fund by Homecoming at- Allen declined to say what the tar- the costs for a Sept. 12 golf fundraiser Tonya Allen: Plan Adam Levinson: and chief information ocer of Grati- tendees. get is for the fund but said similar ef- at Oakland Hills Country Club in is to put investor His $10 million gi cule Asset Management Asia Pte. Ltd. It’s too early to say how much his forts around the U.S. are valued at tens Bloomeld Hills. e event raised dollars to work helped launch fund in Singapore, ew home to Detroit to challenge has leveraged for the fund, of millions of dollars. $600,000. immediately. two years ago. reconnect during Homecoming and as many of the gifts are still being “We’ll be looking to do something A private reception was also held help build the Detroit Children’s Fund. locked in, said Skillman CEO Tonya in that ballpark,” she said, noting that during Homecoming for about 100 potential donors and nonprots and schools like Detroit Edison Public School Academy that could see investment through the fund. “We’re interested in raising capital that can be distributed through venture philanthropy ... (to make) deep investments in (Detroit) schools that are high-performing to ... expand their impact and scale so they can reach Winner and still championing. more schools,” Allen said. While some local schools have edu- A large, publicly traded bank with numerous clients, extensive resources and its own wealth management division for cational expertise evidenced by the results they are getting, they may need ultra-high net worth families: what a rewarding place for John Grzybek to develop true expertise in devising highly support in other areas such as facilities management or nancing expertise, sophisticated wealth strategies. And so he did for 17 productive years. Allen said. “Instead of taking the weakest link and making it stronger, what we’re try- Who could have guessed that an animated caricature would soon after set him on a diff erent path? But in watching ing to do is take the strongest schools and make them stronger so they can a video of Greenleaf Trust’s founder, John heard core values dear to his own heart: putting client interests fi rst, serve more kids,” Allen said. By building on the experience of Skill- employees second, and shareholders third. “If this is real, I’m in,” he told a friend. Due diligence and numerous man and its history of focus on children and education, the children’s fund will meetings with our team confi rmed John’s hopes, and so he joined us be able to move quickly on investments, earlier this year as director of The Family Offi ce at Greenleaf Allen said. “ is is an immediate play — we’re Trust. Through the integration of our holistic wealth not trying to raise an endowment,” she said. management, robust investment platform and sophisticated So why form a new fund and not just seek new support for the educa- tax strategies, John will help our clients and their families tional eorts Skillman is funding? Skillman is set up as a grant-making navigate generational wealth transitions in ways that foundation and can’t take on new capital or gifts, per Internal Revenue Ser- unite and uphold shared values. Now is probably a good vice rules, Allen said. Additionally, the goal is to use the time to put your own house in order. Call John Grzybek, fund “to create a platform where we can engage Detroiters and expats to- and he will show you how. gether to solve one of the toughest issues our city is facing and probably the most important issue in terms of whether our recovery is going to be sustainable,” she said. Sherri Welch: (313) 446-1694 Twitter: @sherriwelch

Giving back The DCF was one of three philanthropic "asks" made of expats at Homecoming III. The other two are: Financial Security from Generation to Generation n A Detroit Homecoming fund at the Community Foundation for Southeast Michigan that attracted nearly $40,000 in expat contributions by Sept. 15. Contributors at $5,000 or more will be able to "vote" on how to spend the money. Deadline for contributions is Sept. 30. n A fund that oers grants to small businesses based in Detroit 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 operated by Invest Detroit. All three "asks" are tax-deductible. CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 37 SPECIAL REPORT: WEALTH MANAGEMENT TOM HENDERSON [email protected] Twitter: @tomhenderson2 Army veteran gives a lesson in teamwork John Kulhavi learned teamwork in Viet- nam, then invented the team concept at Mer- rill Lynch in Farmington Hills. A member of the Reserve O cer Training Corps at Central Michigan University — many years later he would serve as chairman of the school’s board of trustees — upon graduation in 1965, he joined the Army and became a much-decorated helicopter pilot. By the time his tour was done in 1968, he’d received the Legion of Merit, two Distinguished Flying Crosses, a Purple Heart and a Bronze Star. (A member of the Army Reserves, he was called to duty as a logistics manager during Desert Storm, later retiring as a brigadier general.) Soldiers in uniform in 1969 got discounts for commercial air travel, so Panic over Brexit vote he ew to Detroit in his uniform for an interview shows why wealth about an entry-level job at Merrill Lynch. e managers urge clients ight was late and he to avoid crisis mode didn’t have time to change into the expect- John Kulhavi: ed dark suit, white shirt Managing partner, and tie. Merrill Lynch Kulhavi thinks the uniform swayed the inter- viewer, a former Marine during World War II, to hire him. “If it hadn’t been for my uniform, I Taking the long view probably wouldn’t have been hired because I didn’t meet any of their criteria,” he said. Kulhavi started as a trainee, making $775 month, a $300 pay cut from what he was making as a captain in the Army. “Merrill Lynch put me into a bullpen. It was rows and rows of By Tom Henderson $1 billion in value on June 27, making it the happens, we’ll pick up bargains o the bot- desks, and everyone cold-calling all day long.” [email protected] worst two consecutive trading days ever, tom of the market.’ ” From the start, Kulhavi thought there was a e Brexit vote on June 23, which according to S&P Dow Jones Indices. “I have four kids, and when you have better way. shocked pollsters and markets when the Brexit and all that panicked selling four kids, there’s always something. It’s the “I came from the Army, and everything in British electorate voted to leave the Euro- didn’t lead to a recession, or worse, as same in wealth management. ere’s al- the Army is built on teams. I kept going to my pean Union, has been 2016’s poster child many feared. What it led to, instead, was a ways something. I looked at Brexit and boss and saying, ‘We can serve clients better for the mantra of area wealth managers: world full of buying opportunities, and said, ‘ is, too, shall pass,’ ” said Aubrey with teams of specialists.’ I came in one day and STAY THE COURSE! smart money started buying in a hurry. Lee Jr., the senior resident director and rst my boss gave me a plane ticket to New York and If Brexit wasn’t the end of the world, it Despite the gloom and frenzied selling vice president of wealth management for said I had a one-hour meeting with Don Regan.” was the next best thing. of that Monday, by Friday, the Dow was Merrill Lynch’s Aubrey Lee Jr., Readus and Regan was chairman and CEO of Merrill e vote was on a ursday. On Friday, back up to 17,949 and had concluded its Plowden Group in Novi. Lynch. Later, he would be U.S. secretary of the the Dow plummeted 611 points, or 3.4 per- best week of the year. e S&P also had its “ ere turned out, interestingly enough, Treasury and then chief of sta for President cent, to 17,400. e S&P 500 was o best week of the year. to be some buying opportunities because Ronald Reagan. 3.6 percent. Nasdaq was hammered even And on July 18, the Dow hit its all-time of the sell-o ,” he said. “He took notes. I told him why I wanted to do worse, falling 4.1 percent. high of 18,533. “Buy low and sell high is the cliché, but this. When I was done, he picked up the phone, e one-day loss to world markets was “ ose who panicked lost so much people tend to do the opposite. Our per- called Detroit and said to let me form a team,” $2.1 trillion, the single worst day since money because they didn’t stay the petual challenge is to remind people to said Kulhavi. Today, about two-thirds of Merrill Sept. 29, 2008, when the U.S. Congress vot- course,” said Melissa Spickler, managing think long-term,” said Peter Schwartz, a Lynch’s nancial managers serve on teams. ed down the Wall Street bailout. director of Merrill Lynch’s Spickler Wealth principal in Gregory J. Schwartz & Co. in Kulhavi has 22 on The Kulhavi Team, 19 in the Worldwide markets resumed the panic Management Group in Bloom eld Hills. “I Bloom eld Hills, whose job it was to keep Farmington o ce, two in Clearwater, Fla., and after the weekend, losing nearly another sent out emails telling clients, ‘If Brexit SEE PANIC, PAGE 38 one in Cadillac, serving some 750 households in 28 states and ve countries, with money under management approaching $1.2 billion. Mary Jo Nalezyty has been with him 35 years. Charles Kurrie has been on the team 31 years. When a new member joins, it’s for a 12-month trial. At the end of the year, team What, when to buy members vote. It has to be unanimous for the new member to stay. “I’ve seen what bad ap- Aubrey Lee Jr. likes telecom and tech; materials, not so much. ples can do,” Kulhavi said. Kulhavi is winding things down, but he says Read what he and other area wealth managers recommend he still tries to review 70 client portfolios a day. — and discourage — for their clients’ portfolios, Page 39 One for planning, retirement is set for Dec. 31, 2017, when he’ll be 75. 38 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016

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back in days.” portfolio manager in the Bloomeld du jour. Next year it will be North Korea Which is ne. Not doing much means PANIC “ e most dangerous trade is the Hills oce of Loomis Sayles & Co. LP. or something else. e public will sur- leaving the markets alone. e worst- FROM PAGE 37 overcrowded trade,” said Michael vive, regardless,” said Schwartz. case scenario is a Democratic sweep.” Election: Crisis du jour What 12 wealth managers, economists recommend now Dzialo, president and chief invest- Schwartz and other area wealth ad- “A Democratic president and a split clients from selling low in the few days ment ocer of Managed Asset Port- Having a wealth manager is like visers are agree: Markets don’t like un- Congress historically has been the best By Tom Henderson of Brexit panic. folios LLC in Rochester, referring to the having your own roller coaster. But you certainty. Hillary Clinton is a known for stock markets. When that happens, [email protected] “It was almost breathtaking how fast rush to sell post-Brexit. don’t buy a ticket for $10 or the $14 it entity; Donald Trump is not, and his we’ve had annual growth in the Dow of If there’s one thing that becomes the market disregarded it,” he said of He said most analysts and polls takes to ride the New York New York election would likely result in short- 10.4 percent,” said Anne MacIntyre, clear after interviews with 12 wealth the post-Brexit bounce-back. expected the vote to leave the Euro- roller coaster in Las Vegas. It takes more term market sell-os. president and CEO of Annie Mac Fi- managers and economists about in- Just because wealth managers re- pean union to fail. When it passed, like $250,000, which is a typical thresh- “With Trump, you don’t know what nancial LLC in Sterling Heights. vestments they like or don’t like, it’s mained calm didn’t mean their clients there was shock. “It was going to be old for the minimum amount of invest- to expect. e adage is: Wall Street can “A lot of clients are worried about this: ey don’t march in lockstep. did. the end of the world,” said Dzialo. able money a would-be client has to handle good news and bad news, but it the election. ‘What do I do if Clinton is What’s in favor with one may be out “We had many clients panicking. “ e sell-o was a self-fullling have to enlist the services of a profes- can’t handle uncertainty,” said Dzialo. elected? What do I do if Trump is elect- of favor with several others. A geogra- ey panicked and overreacted, and prophecy.” sional, reputable wealth manager. “ e story of Brexit is everyone got it ed?’ ” said Leon LaBrecque, CEO of phy that one is overweighting in cli- we had to do a lot of hand-holding,” It wasn’t a time for panic, it was a And the wealth-management ride wrong, the pollsters and the bookies,” LJPR LLC in Troy. “If Clinton is elected, ents’ portfolios is likely to be on some- said Pete Gargasoulas, vice presi- time for analysis, and for buying, he doesn’t last for a few minutes. It goes said Lyle Wolberg, a partner in Telemus it will be more of the same. She’s an one else’s sell-quick list. dent and senior portfolio manager said. e vote strengthened the U.S. up and down for a full year, usually Capital LLC in Southeld. “Even old-time politician, and her election Some think it is nally time to buy of the Detroit-based eastern region dollar and weakened the pound, with at least one scary, portfolio-defy- though Clinton is ahead in the polls will mean stable markets. Trump is energy stocks. Others say, “Not yet.” of Fih Third Bank. “ ere were a lot which actually beneted English rms ing fall that has fellow investors in full and predictions are that she will win, nothing if not uncertainty.” You can read for yourself the high- of calls we were making to clients that export and which, not so coinci- states of panic. the market doesn’t like surprises. If the He said he is not overly worried lights of what the 12 are recommend- and a lot of calls clients were making dentally, are in his portfolio, including In past years, the market roller pollsters are wrong and Trump wins, about a Democratic sweep, “because ing, selling, and what they have to say to us.” Imperial Brands plc, a tobacco compa- coaster has been sent crashing down- that’s a concern.” of the way they’ve gerrymandered the about it: Gargasoulas said some clients ny; Diageo plc, a maker of alcoholic ward by fears of a double-dip reces- “If Clinton is elected, policies will be districts, but if it happens, you could had to be talked o the ledge; others beverages; and Reckitt Benckiser sion, the Soviet takeover of Crimea, more of the same, for good or bad,” said see a rise in capital gains taxes.” Robert Dye just wanted their hands held briey Group plc, which makes consumer volatility in the Chinese stock market, Nancy Meconi, a partner with Plante Dzialo said until recently he had and to hear him say: “ ‘If you buy goods like dish soap and laundry de- congressional action or the lack there- Moran Financial Advisors LLC in Au- been operating under the assumption Senior vice president, chief econo- high-quality companies like we do, tergent. of, and the Brexit vote. burn Hills. “With Trump, there’s more Clinton would win and Republicans mist, Comerica Bank, Dallas you don’t worry on a day-to-day ba- “Brexit was the equivalent of a Already starting to spook investors, uncertainty, which will make the mar- would keep control of the House and Likes: Chile, sis.’ e reality is, the results of Brexit trip to the dentist. Anxiety, concern, and TV pundits, is November’s U.S. kets sell o.” Senate. But if there is a Democratic South Africa and could take 2½ years to play out, over before you know it,” said David presidential election. Which may prove to be true, but sweep, “it’s a pretty sure bet there will India because of which is why the markets snapped Sowerby, chief market strategist and “ e president election is the crisis area wealth managers have proven be higher capital gains taxes in 2018,” improving com- themselves adept at avoiding the panic he said. “If you own high-ying stocks modities mar- and scal pitfalls of reacting to short- like Facebook and Amazon, you’ll kets; consumer term events. probably want to sell now and lock in discretionary A post-election sell-o would be lower taxes.” Dislikes: Asia, just another crisis du jour to hold cli- Robert Nemzin, a partner and mem- particularly Ja- ents’ hands about. Unless ... ber of the estate planning group in the pan; autos and Unless a Clinton landslide also Bloomeld Hills oce of Butzel Long Dye auto-related leads to Democrats taking over the U.S. PC, agreed that a Democratic election Quote: “Auto Senate and House. Area nancial ad- sweep will aect advice to clients. production peaked in 2015. ere will OOL visers say that what seemed extremely “If you think capital gains rates be a gradual easing of auto sales the 1NFÕ5EJQQN unlikely to them several months ago might go up next year, you’d rather next two years, so that industry will be and still may be a long shot nonethe- generate income this year than next,” feeling a squeeze.” less now has them concerned. A sweep he said. “If you’ve got stocks with built- would result in decisions to sell. in gains, you’ll want to think about sell- Mike Dzialo #VÕ*WTQPÕ%CRKVCNÕYGTGÕ KPÕ VJGÕ “ e biggest risk to markets would be ing them this year.” VTGPEJGUÕDNQEMKPIÕCPFÕVCEMNKPIÕQPÕ to have a Democratic sweep. at Another worry about a Democratic Founder, president and chief in- would change the landscape,” said Jim sweep? Nemzin said gift-tax laws now vestment ocer, Managed Asset Port- GXGT[Õ FGCNÕÕ9GÕ HQEWUÕ QPÕIGVVKPIÕ Robinson, CEO of Grosse Pointe-based allow someone to make a total of folios LLC, Rochester VJGÕ DGUVÕRNC[GTUÕQPÕ VJGÕ HKGNFÕYKVJÕ Robinson Capital LLC. “ at would likely $5.4 million in tax-free gifts over his or Likes: Health care; U.S. stocks, in- VJGÕ TKIJVÕ ICOGÕRNCPÕCPFÕVJGPÕ mean higher tax rates for upper income her lifetime. Clinton is on record as say- cluding Cisco Systems; European earners and higher capital gains taxes. ing she’d like to cap that at $1 million. markets; because of the Brexit vote UKORN[ÕGZGEWVGÕ0QÕUJQTVÕEWVUÕmÕLWUVÕ “If Hillary wins the White House Which could mean a lot of people in that weakened the pound; British RNGPV[ÕQHÕJCTFÕYQTMÕÕ and the rest of the Republican Party the U.S. getting cash for Christmas this rms that export, such as Imperial separates itself from Mr. Trump, it will year. Brands plc, a tobacco company; Dia- be like it has been for the last eight “You’ll want to get your gifts out of geo plc, a maker of alcoholic beverag- years, with not much getting done. the way this year,” said Nemzin. es, and Reckitt Benckiser Group plc,

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Which is ne. Not doing much means leaving the markets alone. e worst- case scenario is a Democratic sweep.” What 12 wealth managers, economists recommend now “A Democratic president and a split Congress historically has been the best By Tom Henderson which makes consumer goods like bonds and high-quality corporate brey Lee Jr., Readus and Plowden Anne MacIntyre for stock markets. When that happens, [email protected] dish soap and laundry detergent bonds Group, Merrill Lynch, Novi we’ve had annual growth in the Dow of If there’s one thing that becomes Dislikes: Oil; Dislikes: Utili- Likes: Asia; President and CEO, Annie Mac Fi- 10.4 percent,” said Anne MacIntyre, clear after interviews with 12 wealth South America, ties; emerging emerging mar- nancial LLC, Sterling Heights president and CEO of Annie Mac Fi- managers and economists about in- Asia; corporate markets; junk kets; health care; Likes: Emerg- nancial LLC in Sterling Heights. vestments they like or don’t like, it’s bonds bonds telecom; tech- ing markets; “A lot of clients are worried about this: ey don’t march in lockstep. Quote: “ere Quote: “We nology; real es- large-cap growth the election. ‘What do I do if Clinton is What’s in favor with one may be out is a lot of oil sup- haven’t had a re- tate investment stocks; master elected? What do I do if Trump is elect- of favor with several others. A geogra- ply out there. In a cession in a long trusts; high-qual- limited part- ed?’ ” said Leon LaBrecque, CEO of phy that one is overweighting in cli- price war, the time. We’re over- ity municipal and nerships in LJPR LLC in Troy. “If Clinton is elected, ents’ portfolios is likely to be on some- only winners are due. Whoever corporate bonds energy; mort- it will be more of the same. She’s an one else’s sell-quick list. low-cost produc- gets elected will Dislikes: Mate- gage-backed se- old-time politician, and her election Some think it is nally time to buy Dzialo ers. e Saudis LaBrecque be unpopular. We Lee rials, including curities; long- will mean stable markets. Trump is energy stocks. Others say, “Not yet.” are the low- may have a presi- metals, textiles, short equity nothing if not uncertainty.” You can read for yourself the highest-cost producers, and they need the dential hangover that triggers a reces- chemicals, paper and glass; consumer MacIntyre funds He said he is not overly worried lights of what the 12 are recommend- revenue. Iran and Iraq are also low- sion, but it won’t be a big one.” discretionary Dislikes: De- about a Democratic sweep, “because ing, selling, and what they have to say cost producers. ey may talk about Quote: “I had Europe as an over- veloped international markets; high of the way they’ve gerrymandered the about it: cutting production, but doing it is an- Aubrey Lee Jr. weight. I’m de-emphasizing it now. I dividend paying stocks that have had a districts, but if it happens, you could other thing.” have it as an equal weight. Brexit might big run-up see a rise in capital gains taxes.” Robert Dye Senior resident director, rst vice have a small impact on U.S. GDP, but it Quote: “e next quarter of earnings Dzialo said until recently he had Pete Gargasoulas president wealth management, Au- won’t be until next year or the year after.” SEE RECOMMEND, PAGE 40 been operating under the assumption Senior vice president, chief econo- Clinton would win and Republicans mist, Comerica Bank, Dallas Vice president and senior portfolio would keep control of the House and Likes: Chile, manager, Fi h Third Bank, Detroit Senate. But if there is a Democratic South Africa and Likes: Tech- sweep, “it’s a pretty sure bet there will India because of nology, including be higher capital gains taxes in 2018,” improving com- Alphabet Inc., Mi- he said. “If you own high-ying stocks modities mar- croso , Apple like Facebook and Amazon, you’ll kets; consumer and Facebook; - probably want to sell now and lock in discretionary nancials, includ- lower taxes.” Dislikes: Asia, ing Citibank and Robert Nemzin, a partner and mem- particularly Ja- Discover; Europe; ber of the estate planning group in the pan; autos and real estate invest- Bloom eld Hills oce of Butzel Long Dye auto-related ment trusts; mas- PC, agreed that a Democratic election Quote: “Auto Gargasoulas ter limited part- sweep will aect advice to clients. production peaked in 2015. ere will nerships in “If you think capital gains rates be a gradual easing of auto sales the energy might go up next year, you’d rather next two years, so that industry will be Dislikes: Utilities; telecom; emerg- generate income this year than next,” feeling a squeeze.” ing markets he said. “If you’ve got stocks with built- Quote: “Lower-growth, high-pay- in gains, you’ll want to think about sell- Mike Dzialo ing dividend stocks have done well as ing them this year.” people have reached for yield. at’s at WHO WILL Another worry about a Democratic Founder, president and chief in- the expense of growth stocks. By the sweep? Nemzin said gift-tax laws now vestment ocer, Managed Asset Port- end of 2017, that’s going to reverse. MAKE allow someone to make a total of folios LLC, Rochester Tech and nancials will lead us, again.” $5.4 million in tax-free gifts over his or Likes: Health care; U.S. stocks, in- BUSINESS her lifetime. Clinton is on record as say- cluding Cisco Systems; European Leon LaBrecque ing she’d like to cap that at $1 million. markets; because of the Brexit vote HAPPEN? Which could mean a lot of people in that weakened the pound; British CEO, LJPR LLC, Troy the U.S. getting cash for Christmas this rms that export, such as Imperial Likes: Energy, with oil likely hitting SPARTANS year. Brands plc, a tobacco company; Dia- $85 a barrel next year; nancials if “You’ll want to get your gifts out of geo plc, a maker of alcoholic beverag- Clinton gets elected; global infrastruc- WILL. the way this year,” said Nemzin. es, and Reckitt Benckiser Group plc, ture; high-quality Michigan municipal

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SPECIAL REPORT: WEALTH MANAGEMENT

Jim Robinson markets FROMRECOMMEND PAGE 39 Dislikes: Gold; CEO, Robinson Capital LLC, Grosse health care will be very interesting. Gold could be- Pointe Quote: “If you come attractive with central banks Likes: Senior own gold, you easing rates. It’s something we’re bank loans hope it goes watching. ... I’m not making big moves through closed- down because in client portfolios.” end mutual that means ev- funds; emerging erything else in markets; master your portfolio is Nancy Meconi Schwartz limited partner- going up. It’s a Partner, Plante Moran Financial Ad- ships in energy; funny yellow material.” visors LLC, Auburn Hills global infrastruc- Likes: International developed ture David Sowerby markets; emerg- Robinson Dislikes: Do- ing markets; mestic large caps; Chief market strategist and portfo- higher-risk cor- S&P 500; European stocks and banks lio manager, Loomis Sayles & Co. LP, porate bonds; Quote: “ e U.S. Federal Reserve is Bloomeld Hills master limited like the cousin who always shows up Likes: High- partnerships in late. It’s not whether Bob will be late or er-yielding cor- energy not, it’s what his excuse will be. e porate bonds; Dislikes: Junk Fed has been late raising rates and just technology; bonds; long-term keeps coming up with excuses not to health care U.S. treasuries do what they say they will do. ey’re Dislikes: Utili- Meconi Quote: “Al- losing credibility.” ties; consumer though the mar- staples; brick- ket is near an all-time high, I have a Peter Schwartz and-mortar re- generally positive outlook on stocks. tailing Valuations might be slightly rich, but Principal, Gregory J. Schwartz & Sowerby Quote: “ is stocks should continue to rise, though Co., Bloomeld Hills remains a very at less than historical rates.” Likes: Energy; nancial; foreign mistrusted bull market that is up 200 percent o its 2009 lows. It’s not sprint- ing, now, but it’s trotting. e U.S. is still the best place to keep the majority of your portfolio, just less so than before.” Melissa Spickler Founder and managing director, A Fee-Only Wealth Management Group The Spickler Wealth Management Group, Merrill Lynch, Bloomeld Hills Likes: Divi- dend-paying stocks; large- Michigan’s #1 Financial Advisor cap domestic stocks; utilities; tech; health care Dislikes: Con- sumer discretionary; nan- FULL SEASON &KDUOHV&=KDQJ cials; &)30%$06)6&K)&&/8 Spickler international 0DQDJLQJ3DUWQHU stocks Quote: “I bought a lot of gold when MEMBERSHIP 2QHRIWKH1DWLRQ熎V7RS1$3)$5HJLVWHUHG the market was down in February be- )HH2QO\)LQDQFLDO$GYLVRUV cause it was so cheap.”

Create memorable experiences for Lyle Wolberg your family, friends, and clients as a Partner, Telemus Capital LLC, Southeld Pistons season ticket member. Likes: Alterna- tive investments We Uphold a Fiduciary Stan that have a low dard correlation to the EXCLUSIVEE INSIDEI BENEFITB S & stock market, EVENTS AACCESS AMENITIESA 犇犆犇:HVW%LJ%HDYHU5RDG such as reinsur- 犇犊WK)ORRU ance portfolios and catastrophe 7UR\0,犊犎犆犎犊 bonds issued by 犈犊犎犌犎犍犇犈犋犎RU 犎犎犎犍犍犍犆犇犈犌 insurance com- Wolberg panies to limit their exposure to catastrophic losses; publicly traded private equity companies; multi-strategy hedge funds; spe- www.zhang nancial.com cialty nance, such as litigation - nance and music royalties Dislikes: Mutual funds that own $VVHWVXQGHUFXVWRG\RI/3/)LQDQFLDODQG7'$PHULWUDGH bonds; commodities; high-dividend $VUHSRUWHGLQ%DUURQ犑V0DUFK犋犈犆犇犌5DQNLQJVEDVHGRQDVVHWVXQGHUPDQDJHPHQWUHYHQXH stocks that have had a big run-up in JHQHUDWHGIRUWKHDGYLVRUV犑ILUPVTXDOLW\RISUDFWLFHVDQGRWKHUIDFWRUV $VUHSRUWHGLQ PISTONS.COM/BUYNOW %DUURQ犑V$XJXVW犈犊犈犆犇犋7KHUDQNLQJUHIOHFWVWKHYROXPHRIDVVHWVRYHUVHHQE\WKHDGYLVRUV share price; oil DQGWKHLUWHDPVUHYHQXHVJHQHUDWHGIRUWKHILUPVDQGWKHTXDOLW\RIWKHDGYLVRUV犑SUDFWLFHV Quote: “We’re in the stay-wealthy, 248.377.8477 1$3)$5HJLVWHUHGVWDWXVUHSRUWHGDVRI6HSWHPEHU犇犎犈犆犇犋RQZZZQDSIDRUJ not the get-rich business.” 0LQLPXPLQYHVWPHQWUHTXLUHPHQW犇犆犆犆犆犆犆 Tom Henderson: (313) 446-0337 Twitter: @TomHenderson2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 41 CRAIN'S LIST: LARGEST MONEY MANAGERS Ranked by assets under management Assets under management Total assets under Non- With management discretionary discretion Company ($000,000) ($000,000) ($000,000) Portfolio Address Jan. 1 2016/ Percent Jan. 1, 2015/ Jan. 1, 2015/ Analysts managers Rank Website Client contact 2015 change 2014 2014 July 1 July 1 Advisory activities Comerica Asset Management Group Michael $21,214.1 -6.7% NA $21,214.1 NA NA Financial planning; portfolio management for individuals and/or small 1 411 W. Lafayette, 5th Floor, Detroit 48275 Malone $22,738.0 $0.0 $22,738.0 businesses, investment companies, businesses or institutional clients; www.comerica.com (214) 462-6866 selection of other advisers; publication of periodicals or newsletters Plante Moran Financial Advisors LLC John Lesser 11,671.1 6.1 5,637.5 6,033.6 19 31 Financial planning; portfolio management for individuals and/or small 2 27400 Northwestern Highway, Southfield 48034 (248) 375-7317 10,997.2 5,289.2 5,708.0 businesses, and businesses or institutional clients wealth.plantemoran.com Munder Capital Management B Paul Pasicznyk 8,099.8 -11.0 278.3 7,821.5 3 4 Portfolio management for individuals and/or small businesses, investment 3 480 Pierce St., 3rd Floor, Birmingham 48009 (216) 898-2454 9,099.2 133.7 8,965.5 companies, businesses or institutional clients www.vcm.com Incore Capital Management B Paul Pasicznyk 4,897.6 -5.1 266.7 4,630.9 3 10 Portfolio management for individuals and/or small businesses, investment 4 480 Pierce St., 3rd Floor, Birmingham 48009 (216) 898-2454 5,159.1 126.0 5,033.1 companies, businesses or institutional clients www.vcm.com Heber Fuger Wendin Inc. David Barnes 4,560.2 1.0 4,452.8 107.4 2 5 Portfolio management for individuals and/or small businesses, businesses 5 36700 Woodward Ave., Suite 201, Bloomfield (248) 258-6866 4,516.8 4,435.7 81.1 or institutional clients, pension consulting services, publication of Hills 48304; www.heberinvestments.com periodicals or newsletters, other McQueen Financial Advisors Charley 3,641.8 -8.8 3,639.5 2.3 3 4 Portfolio management for individuals and/or small businesses, portfolio 6 26676 Woodward Ave., Royal Oak 48067 McQueen 3,994.9 3,991.3 3.6 management for businesses or institutional clients www.m-f-a.com (248) 548-8400 Seizert Capital Partners LLC Paul Seizert 3,419.7 -31.3 0.0 3,419.7 2 6 Portfolio management for individuals and/or small businesses, investment 7 185 Oakland Ave., Suite 100, Birmingham 48009 (248) 593-1514 4,981.2 0.0 4,981.2 companies, and businesses or institutional clients www.seizertcapital.com LS Investment Advisors LLC William Camp 3,312.9 7.5 0.0 3,312.9 67 9 Financial planning, portfolio management for individuals and/or small 8 39533 Woodward Ave., Suite 302, Bloomfield (248) 430-0262 3,082.0 1.0 3,080.9 businesses and businesses or institutional clients Hills 48304; www.LSInvestmentAdvisors.com Gregory J. Schwarts & Co. Peter Schwartz 2,774.3 4.8 2,650.3 124.0 5 8 Financial planning, portfolio management for individuals and/or small 9 3707 W. Maple, Bloomfield Hills 48301; (248) 644-2701 2,646.3 2,515.6 130.7 businesses, businesses or institutional clients, pension consulting services, www.gjsco.com publication of periodicals or newsletters Advance Capital Management Inc. John Pelon 2,307.7 -1.1 478.6 1,829.1 3 3 Financial planning; portfolio management for individuals and/or small 10 1 Towne Square, Suite 444, Southfield 48076 (248) 350-8543 2,333.6 533.7 1,799.9 businesses, investment companies, and businesses or institutional clients www.acadviser.com Telemus Capital LLC Lyle Wolberg 2,221.8 28.1 788.6 1,433.2 4 4 Financial planning; portfolio management for individuals and/or small 11 2 Towne Square, Suite 800, Southfield 48076 (248) 827-0110 1,734.7 250.6 1,484.1 businesses, investment companies, businesses or institutional clients; www.telemus.com selection of other advisers Clarkston Capital Partners LLC Kurt Terrien 2,032.7 103.3 NA 2,032.7 NA NA Portfolio management for individuals and/or small businesses, portfolio 12 91 W. Long Lake Road, Bloomfield Hills 48304 (248) 723-8000 999.7 NA 999.7 management for businesses or institutional clients clarkstoncapital.com Sigma Planning Corp. Amy Holzer 1,987.4 -15.8 5.7 1,981.7 NA NA Financial planning; portfolio management for individuals and/or small 13 4261 Park Road, Ann Arbor 48103 (734) 663-1611 2,361.6 5.6 2,356.0 businesses, businesses or institutional clients; selection of other advisers; www.sigmafinancial.com other Mainstay Capital Management LLC David Kudla 1,930.3 -1.5 0.0 1,930.3 5 7 Financial planning; portfolio management for individuals and/or small 14 100 E. Big Beaver Road, Troy 48083 (866) 444-6246 1,959.6 0.0 1,959.6 businesses and businesses or institutional clients; pension consulting www.mainstaycapital.com services Flexible Plan Investments Ltd. Len Durso 1,851.0 -7.6 NA 1,851.0 5 4 Portfolio management for individuals and/or small businesses, investment 15 3883 Telegraph Road, Suite 100, Bloomfield (412) 225-4936 2,003.7 0.0 2,003.7 companies, businesses or institutional clients; publication of periodicals or Hills 48302-1432; www.flexibleplan.com newsletters; security ratings or pricing services Schwartz Investment Counsel Inc. Robert 1,752.9 -7.5 NA 1,752.9 7 10 Portfolio management for individuals and/or small businesses, investment 16 801 W. Ann Arbor Trail, Suite 244, Plymouth Schwartz 1,894.8 1.0 1,893.8 companies, and businesses or institutional clients 48170; www.schwartzinvest.com (734) 455-7777 Azimuth Capital Management LLC Management 1,662.4 2.1 132.2 1,530.2 NA NA Portfolio management for individuals and/or small businesses and 17 200 E. Long Lake Road, Suite 160, Bloomfield team 1,628.6 120.4 1,508.2 businesses or institutional clients Hills 48304; www.azimuthcap.com (248) 433-4000 Retirement Income Solutions Inc. Brock Hastie 1,416.1 6.1 0.0 1,416.1 NA NA Financial planning; portfolio management for individuals and/or small 455 E. Eisenhower Parkway, Suite 300, Ann (734) 769-7727 1,334.4 0.0 1,334.4 businesses and businesses or institutional clients; other 18 Arbor 48108 www.risadvisory.com Portfolio Solutions LLC John Bergmann 1,350.5 -4.2 0.0 1,350.5 NA NA Portfolio management for individuals and/or small businesses and 19 900 Wilshire Drive, Suite 200, Troy 48084 (248) 689-1550 1,410.4 0.0 1,410.4 businesses or institutional clients www.portfoliosolutions.com IPEX Inc. Shale Lapping 1,270.3 -5.4 1,053.3 217.0 2 2 Portfolio management for individuals and/or small businesses, businesses 20 156 W. Liberty St., Plymouth 48170 (734) 451-0777 1,342.8 1,133.2 209.6 or institutional clients, pension consulting services, selection of other www.ipexusa.com advisers, other Bloom Asset Management Inc. Rick Bloom 1,005.8 -5.9 NA 1,005.8 4 7 Financial planning; portfolio management for individuals and/or small 31275 Northwestern Highway, Suite 145, (855) 932-2200 1,069.2 NA 1,069.2 businesses and businesses or institutional clients; pension consulting 21 Farmington Hills 48334 services www.bloomassetmanagement.com DeRoy & Devereaux Private Investment Sarah Schattner 975.5 3.2 0.0 975.5 NA 7 Portfolio management for individuals and/or small businesses and Counsel Inc. (248) 358-3220 945.4 0.0 945.4 businesses or institutional clients 22 2000 Town Center, Suite 2850, Southfield 48075 www.deroydevereaux.com Planning Alternatives Ltd. Nathan 943.3 C -6.3 0.0 C 943.3 C 1 8 Financial planning; portfolio management for individuals and/or small 23 36800 Woodward Ave, Suite 200, Bloomfield Mersereau 1,006.2 0.0 1,006.2 businesses, investment companies, and businesses or institutional clients Hills 48304; www.planningalt.com (248) 645-1520 NorthPointe Capital LLC Ken Kosiorek 821.5 -6.6 0.0 821.5 NA NA Portfolio management for individuals and/or small businesses, investment 24 101 W. Big Beaver Road, Suite 745, Troy 48084 (248) 457-1200 879.7 0.0 879.7 companies and businesses or institutional clients www.northpointecapital.com Sigma Investment Counselors Inc. Nancy Kunkel 762.6 6.1 0.0 762.6 NA NA Financial planning; portfolio management for individuals and/or small 25 27777 Franklin Road, Suite 1100, Southfield (248) 223-0122 718.4 0.0 718.4 businesses and businesses or institutional clients 48034; www.sigmainvestments.com

This list is a compilation of the largest money managers in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Assets under management with discretion gives a firm the authority to manage assets and to decide which securities to purchase and sell, and decide which investment advisers to retain. Assets under management non-discretionary requires clients to approve transactions before they can occur and may include advisory services, analysis and monitoring of accounts and investments. Unless otherwise noted, information is reported from the Form ADV, which is used to register an investment adviser with the U.S. Securities and Exchange Commission. It is not a complete listing but the most comprehensive available. NA = not available. B Owned by Victory Capital Management Inc. (Ohio) and operates as a Victory Capital investment franchise. C Assets calculated as of Feb. 29. 2016.

LIST RESEARCHED BY SONYA D. HILL SPECIAL ADVERTISING SECTION

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Couzens Lansky is a full service business, tax, estate planning, litigation, real estate, employment and commercial law firm located in Oakland County, serving the needs newsletter of individual, corporate and business clients of all sizes. Get the week’s most relevant, i Trusts & Estates i Employment & Labor engaging content for individual investors in the areas of i Probate & Trust Administration i Litigation & Dispute Resolution investing, financial planning i Taxation i Banking & Finance and wealth management. i Business & Corporate i Construction Law i Real Estate 6LJQXSWRGD\ crainsdetroit.com/wealthnewsletter 39395 W. Twelve Mile Road; Suite 200 Farmington Hills, Ml 48331 P 248-489-8600 F 248-489-4156 [email protected] www.couzens.com 5HDFKDQLQñXHQWLDODυXHQWDXGLHQFHDFURVV0LFKLJDQ&RQWDFW0DWW/DQJDQIRU DGYHUWLVLQJLQIRUPDWLRQDW RUDGYHUWLVLQJFGE#FUDLQVGHWURLWFRP CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 43

GATHER With a focus on bringing people together around the table to enjoy simple, quality food, the restaurant Gather is scheduled to open near Detroit’s Eastern Market by late November. New Gather restaurant to bring simple dishes to Eastern Market By Adrienne Roberts “(The open re) [email protected] With a focus on bringing people enables you to together around the table to enjoy add avors into simple, quality food, the restaurant Gather is scheduled to open near things that you Detroit’s Eastern Market in late No- can’t get unless vember. e 1,000-square-foot restaurant, you do that.” at 1454 Gratiot Ave. down the street Nate Vogeli, partner, chef at Gather from the restaurant Antietam, aims to remind people of their childhood or — not even monthly — but go with time spent at the campre up north the seasons and highlight farmers’ Sponsor-Contributed Content by serving ame-broiled American best produce.” food around large communal tables. Gather will have a full bar, sourc- THE ADVISOR e 30-seat restaurant’s standout ing alcohol from Detroit City Distillery feature is an open re that will be in the market. He said the drinks will used to cook many of the dishes. have just a few ingredients, made “( e open re) enables you to with some housemade simple syr- into international markets. inevitably face when ex- add avors into things that you can’t ups. One drink will be called the Old Yet, many companies panding overseas. get unless you do that,” said Nate Vo- Soul, a slushy made with Vernors gin- don’t take advantage of geli, a partner and chef at Gather. ger ale and bourbon. export opportunities. Did Automation Alley trade “You get more depth of avor.” All beer will be in cans (no kegs or you know 95.5 percent missions introduce Vogeli, who used to be the head drafts) — mostly from Michigan and of the world’s total pop- businesses to new high- chef of Blu n Sushi in Grosse Pointe California — and the wine and Farms, said most dishes will be based champagne list is still under consid- ulation resides outside growth markets. These around a vegetable or meat, with a eration. the U.S.? Similarly, 81.8 missions are cost-com- few shared options as well as a few In keeping with the simple theme, percent of the world’s pur- petitive, all-inclusive and large-format items for solo diners. Gather will have a soft-serve ice chasing power stretches results-driven, having For example, the menu could have cream machine — the restaurant's beyond our nation’s bor- generated more than half a dish that features a purple potato, only dessert oering. ders. So why is there a a billion dollars in export which Vogeli said will be cut and Vogeli, 31, a Grosse Pointe Park hesitation to export? sales for companies. See topped in a unique way to highlight resident, along with partners Kyle Noel Nevshehir if your company qualifies the potato. and Lea Hunt, 26, (a husband and Director, International “I like taking something that’s wife team and residents of Detroit), Business Services In many cases, failure to for funding that can be ap- very, very simple and prepping it in a will invest about $100,000 into the Automation Alley develop a meaningful plied toward the cost of a way that’s unique, (as well as) bor- space, which they are leasing from [email protected] export strategy causes mission. For more informa- rowing techniques from a lot of dif- Fortus Development LLC. e part- companies to crash on tion, visit automationalley. ferent cuisines,” he said. ners are working with Grosse Pointe- Why your company takeoff. Companies must com/trademissions. e restaurant will source ingredi- based Mertz Design on the interior, ents from nearby Eastern Market, which will have cement countertops should consider develop an international and the menu will change according- and charred wood elements through- going global business plan to map their ly with the seasons. out the space. global goals. Seek public “It’s neat that we’re in a spot where e building also features a sec- We live in a global society and private sector orga- hundreds of farmers come every ond-oor kitchen and living space, nizations that can help where the future success 2675 Bellingham Dr. week to us and we can buy produce along with a third-oor outdoor pa- you sidestep some of the of business largely de- Troy, Michigan 48083 and meet the person that’s growing it tio, which the partners may eventual- common hurdles you will and their family,” said Kyle Hunt, 27, ly use for dining overow. ey plan pends upon diversifying 248-457-3200 a partner at Gather. “We’re not going to hire 10-15 employees to sta the to change the menu daily or weekly restaurant. 44 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 TUESDAY-WEDNESDAY nonmembers. An extra $5 will be SEPT. 27-28 charged to those registering the day of PEOPLE: 16th Annual Great Lakes Women’s the event. Contact: Jaimi Brook, Business Conference. e meeting CALENDAR phone: (248) 641-8151; email: SPOTLIGHT will deliver strategies for succeeding in members; $225 nonmembers. Online Brand Engagement. 11:30 [email protected]. Krauss to leave Detroit emerging markets. Includes supplier Contact: Betty Aliko, phone: (734) a.m.-1 p.m. Troy Chamber of and procurement representatives 677-1400; email: baliko@ Commerce. Attendees will learn how THURSDAY chamber for Indy post from corporate, public institutions greatlakeswbc.org. to create social media objectives, SEPT. 29 Maureen Donohue Krauss, and government entities, a women’s identify key in uencers and prioritize Top of Troy: Women of In uence. senior business showcase and reception, and WEDNESDAY social media listening e orts. Troy 8-9:30 a.m. Troy Chamber of adviser of an awards luncheon. Suburban SEPT. 28 School District Services Center, Troy. Commerce. Meet four of the area’s top economic Collection Showplace, Novi. $200 The Art of Social Listening and $18 Troy Chamber members; $28 female business leaders for breakfast development and a panel discussion. Panel at the Detroit members include Heidi Kassab, Regional president and CEO, Cornerstone Chamber, ADVERTISEMENT SECTION Community Financial; Leslie has resigned Robinson, franchisee/co-owner, to become MANUFACTURING Edible Arrangements stores; Luanne chief Thomas Ewald, CEO, DMC Children’s Krauss economic Hospital of Michigan; and Lisa development Toenniges, owner/CEO, Innovative o cer at the Indy Chamber in Learning Group. Learn about the Indianapolis. challenges they faced on their paths Krauss joined the Detroit to success, key tools they have used to chamber in 2011 in the new remain focused, daily decisions they position of vice president of face and how being a woman has economic development and impacted their choices. MSU business attraction. She had MANUFACTURING Management Education Center, Troy. worked in a similar capacity for $18 members; $28 nonmembers. Oakland County for 13 years. Website: troychamber.com. Harlan to retire Jason Ziga Women Who Fund Forum. 11 a.m.-4 p.m. University of Michigan Center for as WDIV news anchor Vice President of Screen Print Transfer Venture Capital & Private Equity News anchor Carmen Harlan Technology Finance and Zell Lurie Institute for will retire this fall after nearly 40 STAHLS’ Entrepreneurial Studies. Speakers years on include Margaret Gibson, partner, Detroit NBC STAHLS’, a global leader in the garment Kirkland & Ellis LLP; Maureen Miller a liate decoration industry, has promoted Jason Brosnan, executive director, Michigan WDIV- Ziga to vice president of screen print transfer Venture Capital Association; Channel 4. technology, where he will be responsible for Elizabeth Parkinson, executive Harlan’s organizing and aiding in the future Jennifer Joseph director for marketing, University of n a l development of STAHLS’ transfer Vice President of U.S. Regional Sales Michigan; Mary Hinesly, professor of newscast is manufacturing technology capabilities in business communications, University slated for STAHLS’ North America. Ziga will retain his role as of Michigan. Panelists include: Carol Nov. 11, but general manager of STAHLS’ Transfer STAHLS’, a global leader in the garment Clark, managing director, Healthcare Harlan she will Express. As general manager, Ziga has led decoration industry, has promoted Jennifer Technology Capital Partners; Ellen return to team members in maximizing production Joseph to vice president of U.S. regional Clark, managing director, Greenwich host “America’s anksgiving e ciency, quality, customer and resource sales, where she will oversee all regional Capital Group; Jan Gar nkle, founder Parade,” the station said. Harlan, management. managers and outside sales representatives. and managing director, Arboretum 62, will take on an ambassador Joseph’s experience with STAHLS’ nancial, Ventures; Wendy Jarchow, chief role with the station for inventory and sales sectors has given her an HEALTH CARE investment o cer, River SAAS promotional and special event in-depth understanding of the needs of Capital; Heather Madland, vice projects. STAHLS’ customers. In addition to her new president, business development, Harlan was hired at WDIV in role, Joseph will retain responsibility for Huron Capital Partners; Mary 1978 as a general-assignment ongoing growth and strategic planning for Petrovich, operating executive, The reporter. She went on to anchor STAHLS’ Imprintables Warehouse. Carlyle Group and chairman of the the evening news, rst with Mort board, Axle Tech International. Crim and, for the past two Graduate Hotel, Ann Arbor. $75. decades, with Devin Scillian. Website: www.bus.umich.edu/ Conferences/Women-Who-Fund/ Hispanic chamber names UPCOMING EVENTS ex-Girl Scouts exec as CEO Fourth Annual Conference of e Michigan Hispanic Western Wayne Business Leadership Chamber of Commerce named Brenda S. Craig Banquet. 5-8 p.m. Oct. 4. Conference former Girl of Western Wayne. Emcee will be Scouts Senior Vice President of Mary Kramer, publisher, Crain’s executive Population Health Detroit Business, and the keynote Gloria Lara as Henry Ford Health System speaker will be Jacques Panis, CEO. Leslie Miller president, Shinola. $1,500 corporate She Susan Hawkins returned to Henry Ford table package; $100 per person. Ford succeeds Vice President and Health System as Senior Vice President of Motor Co. Conference and Event Camilo Chief Financial O cer Population Health. She provides Center, Dearborn. Contact: Laura Suero, who administrative leadership in the ongoing STAHLS’ Tahmouch, phone: (734) 427-2122; stepped development and implementation of the email: [email protected]. Lara down as STAHLS’, a global leader in the garment system’s approach to population health, executive decoration industry, has promoted Leslie with the goal of improved outcomes at a director of the Beverly Hills-based Miller to vice president and chief nancial lower cost. She has extensive experience in Calendar guidelines. Visit chamber in late August after a o cer. In this role, Miller will work to designing and implementing large-scale, crainsdetroit.com and click “Events” more than three-year tenure to consolidate and streamline account innovative changes to strategies and near the top of the home page. pursue other opportunities. She practices and internal controls. Miller processes. Most recently, Susan served as Then, click “Submit Your Events” will serve as an adviser until the previously served as corporate controller, Chief Quality O cer for Detroit Medical from the drop-down menu that will end of the year. where she partnered with STAHLS’ business Center. appear. Fill out the submission form, units to develop and deliver nancial then click “Submit event” at the Lara had served for nearly six objectives and strategies. Miller is a CPA and bottom of the page. years as CEO of the Grand is currently working toward her master’s Rapids-based Girl Scouts of More Calendar items can be found degree in taxation at Michigan Shore to Shore. at crainsdetroit.com/events. Walsh College. CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 45 September 26, 2016 CRAIN’S DETROIT BUSINESS Page 45

as Chef de Cuisine at Alizé at the Palms FOODS Casino Resort. FROM PAGE 3 He went on to become vice president of food and beverage and master estate developer Markus Management chef for Celebrity Cruises from 2007 to Group LLC, the landlord of 2941’s 2012, before coming to his wife’s na- Rochester Hills and Auburn Hills loca- tive Michigan to be closer to her fami- tions. ly. Markus is serving as managing e fast-paced growth planned for partner of 2941, so named for the lon- 2941 is nothing new to Van Staden. gitude and latitude of the Mediterra- “Imagine opening the Bellagio (ca- nean and the Middle East. e fast casino-hotel in Las Vegas) every nine sual concept serves modern, months,” he said, noting that was the all-natural takes on street food from equivalent of what he did at Celebrity countries including Greece, Turkey, Cruises. Israel, Jordan, Egypt, Tunisia, Cyprus, During his ve-year tenure, the Lebanon, Syria and Iraq. company opened ve new ships, one Its atmosphere is organic and sim- every nine months. Each ship had 26 ple, with wood plank walls, long restaurants and 32 bars. wooden tables and tall bench seating, “It would be intimidating to open a tile oors and basket-covered lights. 2941 STREET FOOD dierent concept each time, but you customers can pick a bowl, sandwich or meal, then a starch, Like Chipotle or various sandwich 2941 Street Foods streamline your systems and process- protein, sauce, torshi or pickled vegetable and salad from among the fresh oerings. chains, 2941 oers patrons the ability es when you open the same concept, to customize their dishes. Visitors can and that’s what makes it much easier,” pick a bowl, sandwich or meal, then a fered, in Mexican Cola, orange cream he sold his car to purchase airfare to said Van Staden, who developed the “Middle Eastern starch, protein, sauce, torshi or pickled soda, lemon lime and root beer, are come to the U.S. and arrived here in Bistro Joe’s restaurant inside the Papa food is no surprise vegetable and salad from among the made with cane sugar. 1990 with only $50 in his pocket. Joe’s Gourmet Market in Birmingham. fresh oerings. “ e concept is very well-received. Van Staden mowed lawns for about A commercial kitchen in Troy serv- to anyone, but e menu ranges from a mini bowl, ... What you really get is this all-natu- six months before landing a security ing as a centralized place to make everyone prepares with a choice of basmati rice or organ- ral, wholesome brand,” Van Staden job at the South African Embassy, sauces and dressings for each site will ic wheat, with protein, torshi sauce said. which enabled him to pay monthly tu- help bring new 2941 locations on line it like they did 15 and hummus for $7.50 to a bazaar His brother, also a chef, will manage ition to attend L’Academie de Cuisine quickly, he said. or 20 years ago.” meal, served with basmati rice or the 2941 restaurants opened in Las Ve- in Maryland. “Middle Eastern food is no surprise wheat grain, a protein, torshi, sauce, gas, he said. After graduating there, he hired into to anyone, but everyone prepares it Jacques Van Staden, co-owner, salad, falafel, veggie grape leaf, hum- From there, the ownership group the historic Occidental Grill near the like they did 15 or 20 years ago,” Van 2941 Street Foods mus, olives and bread for $16.50. also plans to take the fresh Mediterra- White House and later became sous Staden said. “We have no freezers and nothing nean concept to Miami, Chicago, chef at the late French chef Jean-Louis “ is concept is more of a fresh ap- that’s processed on the premises,” Van Washington, D.C., and New York. Palladin’s restaurant, Jean-Louis, in proach and a modern twist to Middle Staden said, only raw sugar and sea A South African native, Van Staden the Watergate Hotel. Eastern and Mediterranean cuisine ... salt, non-GMO sunower oils from the began cooking at age 7. By 14, he was Late in 1999, Van Staden was re- (geared) to the mainstream market — Middle East, organic lettuces, salads taking lessons at a local French restau- cruited to the Aladdin casino in Las not just those with a specic Middle and wheats and natural, free-range rant while his father thought he was Vegas to serve as executive chef of its Eastern background.” meats. out playing rugby. high-end London Club. During his Sherri Welch: (313) 446-1694 Even the Leonard Syrup pops of- After graduating from high school, seven years in the city, he also served Twitter: @SherriWelch

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&DUHHU2SSRUWXQLW\ ceeds any authority granted to the de- to hourly and vice versa. OVERTIME partment by Congress, which has nev- “After the audit, we develop a plan FROM PAGE 1 er authorized indexing of the to implement the new overtime rules minimum salary thresholds related to and make any necessary changes to %XVLQHVV&RDFK regard to state employees, will in- overtime,” the lawsuit states. positions, pay, policies and practices,” 6XFFHVVIXO0DUNHWLQJ6WUDWHJLVWORRNLQJWRIRUPD crease costs and force the cut of es- Klotz said that just because the Villaire said. SDUWQHUVKLSZLWKDVPDOOEXVLQHVVFRDFKFRQVXOWDQW sential government services. e U.S. DOL did not enact the indexing provi- Klotz said the issue has become Chamber of Commerce, with the sup- sion in 2004 does not mean it’s not le- highly politicized. ,¶YHGHYHORSHGDSURFHVVZKHUH,FDQILQGPRUHWKDQ port of dozens of other chamber orga- gal. “ese states all have Republican IRU$1

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But DMC CEO Joe Mullany told of all sterile processing departments guage in LARA’s report. to document their attendance. DMC Crain’s that DMC was well on its way of for DMC’s seven hospitals, not just the “LARA is not wrong in the report. I “If we aren’t documenting the FROM PAGE 3 correcting the problems at the time four downtown Detroit hospitals cited am not sure there is a contradiction,” schedule, you don’t know how good a the News article was published. by LARA and CMS, he said. said Eadie, noting that Unity ocials system you have in place. We don’t Detroit News, the Michigan Department “We take this very seriously,” he At the LARA action plan presenta- have spoken with many (sterile pro- know how good or bad we are. Since of Licensing and Regulatory Aairs con- said. tion, Eadie said he and two members cessing department) employees. then, we have put a good system in ducted an inspection Aug. 29-30 of Larry Horvath, director of LARA’s of DMC’s new surgical task force dis- “Instead of pulling the les,” Eadie place,” Eadie said. “We will show LARA DMC’s downtown sterile processing bureau of community and health sys- cussed with LARA ocials Horvath said Unity has observed worker per- this in our written report.” department and found various health tems, said its infection control inspec- and attorney Matthew Jordan an over- formance. Horvath said the state will review code violations. tion did not nd any evidence of high- view of steps they will be taking to To address stang coverage issues DMC’s corrective action plan and ex- e state inspection report, re- er rates of surgery cancellations than comply with state health codes. in sterilization, Mullany said seven pects to respond to it sometime in Oc- leased Sept. 15, covered employee and what is the norm at other hospitals it e surgical council will include employees have been hired to supple- tober. management training problems, lack licenses. Eadie, a surgeon and administrators ment the department’s 82 member “We are looking at the proposal of documentation, and unspecied “DMC has redundancies to protect from each DMC hospital, Unity o- workforce. Another four are expected they outline and would it correct the issues in infection control practices. patients, and we did not nd any im- cials, anesthesiologists from Tex- to be hired. decient practices,” he said. “Once we LARA inspectors reviewed the infec- mediate” problems that would endan- as-based NorthStar Anesthesia and “We are hiring,” said Eadie. “It is approve it, they have specic dates to tion control and surgical practices for ger patients, said Horvath, adding this DMC’s chief medical ocer, Suzanne hard to nd certied, qualied CSP make the corrections. We will do a re- the U.S. Centers for Medicare and Medic- is one reason LARA did not order White, M.D. employees. Past vacancies put de- visit to make sure everything is cor- aid Services related to DMC’s alleged DMC to halt surgeries. “We will address the LARA issues mands on shift coverage.” rected as stated.” poor job of cleaning surgical instru- LARA’s inspection team included a and other issues with the council,” Eadie also addressed the LARA re- Despite the health code violations, ments, equipment and other tools. surgical nurse and a nurse training in said Eadie, noting that improvements port that suggested department sta patients have not been placed at risk of DMC has not released the CMS in- infection control practices. Other team will cover the entire perioperative were not attending required training infection or other serious problems, spection report. members included an expert in good area that includes central sterile pro- sessions. Eadie said. “We want to give the state and CMS manufacturing practices, Horvath cessing, pre-surgery, surgery and “ ese are mandatory training ses- “We have some opportunity for im- enough information about practices said. post-surgery areas. sions,” Eadie said. “We do it when em- provement in perioperative,” he said. so they feel comfortable that (the right Once DMC submits its corrective “We will touch on what we are do- ployees arrive at work in the morning. “ ere is no evidence that we have things) will happen” in sterile process- action plan in the next several weeks, ing from an education, training, evalu- We send them over for training. We jeopardized patient safety and quality ing and surgery departments, he said. LARA could hire additional infection ation and documentation basis,” he did not display that suciently in doc- in our activities.” e Aug. 26 Detroit News story out- control and surgery department ex- said. “ at is where we failed.” uments. I don’t fault the state for not Eadie said DMC has reviewed all lined 11 years of problems with sterile perts to help them review the plan, Eadie said hiring Unity will help seeing that. ... We are trying to get incident reports of surgeries and has processing that employees and sur- Horvath said. DMC develop a best practice manage- more of them into training and have found no connection between prob- geons had complained about. Surgical “We have many avenues to pursue ment approach to all surgical areas. them certify they were there.” lems in sterilization and increased instruments were improperly cleaned with the corrective action plan,” he said. “Unity said we have talented people In its report, LARA found the unit morbidity (complications) or mortali- and sometimes broken, causing sur- “We are always open to being able to do in (central sterile processing), but they “does not have a robust, consistent, re- ty rates. geons to delay or cancel dozens of op- a deeper dive. We might contract with are not doing well enough with (docu- peatable, comprehensively docu- “I am a Detroiter, and just because I erations. Surgeries ranged from ap- experts to review the hospital plan.” menting) all expectations we had de- mented and well-maintained training work at DMC, I take it doubly person- pendectomies to brain surgeries. Mullany said he wants to meet ev- scribed” to LARA. system for new and existing employ- al,” Eadie said. “I am a product of the e instrument cleaning problem ery other week with LARA to discuss In LARA’s report, however, a Unity ees and management.” city, and I would never ever do any- began during the tenure of now-May- progress the hospital system is making ocial said the company had not yet Eadie said DMC believes it has a thing to harm the citizens here.” or Mike Duggan, who was CEO from in improving sterile processing and “looked at any employee les” to as- good training system, but said hospital Jay Greene: 313 (446-0325) 2004 until 2012, when he resigned to what corrective actions are being tak- certain the level of individual sta or managers failed to require employees Twitter: @jaybgreene make a successful bid for mayor of De- en. He said the June hiring of Unity management training or competency. troit. It continued after DMC was sold Health Trust, an Alabama-based man- Unity also told LARA there is no time- to for-prot Vanguard Health Systems agement company, demonstrates table to complete employee and man- in 2010 and two years later when Tenet DMC’s commitment to improve. agement evaluations. Healthcare Corp. acquired Vanguard. Unity now oversees management Eadie claried some of the lan-

Expo explores private planes’ use for biz By Adrienne Roberts [email protected] With a backdrop of 20 private jets, business executives and aviation experts discussed how private aviation can help some companies operate more eciently at the second annual Business Aviation Expo on ursday at the Oakland County International Airport. More than 200 people attended the ADRIENNE ROBERTS/CRAIN’S DETROIT BUSINESS Corporate Eagle rolled out the red carpet Thursday for the Business Aviation Expo daylong event in Waterford Township, and oered tours of the Falcon 2000, among other planes at the which included private aircraft tours, Oakland County in Waterford Township. remarks by Oakland County Executive International Airport L. Brooks Patterson, breakout sessions Hills-based Hi-Tech Mold & Engineer- Schulte, who owns and pilots his focused on fractional ownership and ing Inc. own plane, recommended that those aircraft leasing, and a panel discussion. e three executives agreed that interested in getting into private avia- Attendees were oered the oppor- private aircraft is a sound investment tion start with chartering a plane, then tunity to tour planes such as Corporate for their companies because it makes work up to quarter ownership or total Eagle’s Falcon 2000, a 10-seat plane travel for their employees more conve- ownership. that can achieve speeds of 529 mph nient and ecient. ere is a wide range of costs to and reach cruising altitudes of 47,000 “It’s an extension of the oce,” Mai- charter or own an airplane. For exam- feet. Also on display was the Gulfst- bach said. “We’ll schedule meetings ple, to charter a midsize plane that ream G650, a twin-engine jet that can on the plane because Wi-Fi is such a seats up to nine people through Pen- reach speeds of about 650 mph. mainstay, and it’s easy to coordinate, tastar Aviation, which is based at Oak- Over the roar of airplanes taking do work and it’s quiet.” land County International Airport, o, KC Crain, executive vice presi- Schoeneberger said Bluewater prices range from $2,700 to $4,000 per dent and director of corporate opera- Technologies executives were origi- hour. To lease a hangar at the airport tions for Detroit-based Crain Commu- nally nervous about getting into pri- costs $250 per month for a 40-foot- nications Inc., moderated a panel vate aviation because of its elitist stig- long hangar to $380 per month for a with Ryan Maibach, president of ma, but they found it to be a 48-foot-long space. Southeld-based Barton Malow Co.; “team-building activity” because their A new Falcon 2000 jet costs about Scott Schoeneberger, director of employees were in the air for a signi- $25 million to purchase. marketing for Bluewater Technologies cant amount of time with their More than 550 private and corpo- in Southeld; and Robert Schulte, co-workers, and they could spend that rate aircraft are based at Oakland president and CEO of Rochester time brainstorming. County International Airport. 48 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 QLine streetcars to be equipped with ‘black boxes,’ have unique color

By Bill Shea [email protected] e new M-1 Rail QLine streetcars are equipped with “event recorders” — commonly known as the black boxes used by airlines — for when they begin ferrying passengers along Woodward Avenue in Detroit next spring. e black boxes, which record data from the cars’ operations and can be used to investigate accidents, are just one of the features of the vehicles, the rst of which was on display for media last week at M-1 Rail’s Penske Technical Center in the New Center Area. PHOTOS BY BILL SHEA/CRAIN’S DETROIT BUSINESS e three-piece, articulated cars Once the M-1 Rail streetcars start running on Woodward Avenue in Detroit, the graphics will be removed from the windows. M-1 Rail gave media a look at its rst are 66 feet long and able to carry 125 QLine-branded streetcar on Wednesday at the Penske Technical Center in the New Center Area. passengers on average. ere are 34 cloth seats along with a slew of loop handles for standing, mostly in the equipped on transit vehicles. To avoid any appearance of favorit- supplying the lettering for the cars. Digital crawl marquees on either center portion of the streetcars, which e rst of six streetcars was deliv- ism, M-1 said it specically chose red While in the testing phase, the street- end of the car, along the exterior sides are lower at either end. ey’re ered Sept. 13, and the rest are to arrive to ensure it’s dierent from all the col- cars will have on the windows the Fat- and inside currently display a “Hello air-conditioned, heated and come by the end of the year. ey come from or schemes used by its various do- head-provided wording “QLine De- Detroit” message, but once service be- equipped with bike racks and Wi-Fi. Brookville, Pa.-based Brookville Equip- nors, which includes General Motors troit,” “owned and operated by M-1 gins they will be used to list the up- Passengers enter from grade-level sta- ment Corp., which signed a $32 million Co., Ford Motor Co., Penske Corp., Bank Rail” and “powered by DTE Energy.” coming station along the 3.3-mile rail tion platforms, and each side of the contract in May 2015 with M-1 for the of America, Compuware Corp. and the Once the cars are in passenger service, line. e stop names also will be streetcars has two large sliding doors. streetcars, spare parts and support Ilitch companies (which represent Lit- the windows must remain blank and all broadcast inside the car, as is done on For safety, there are six internal services. Brookville, which is the only tle Caesars pizza chain, the Detroit Red wording and graphics will be on the the Detroit People Mover. It will have 20 cameras whose footage is recorded, U.S. manufacturer of streetcars, will Wings and Tigers). metal anks above and below the win- stops along the loop between Larned and four exterior cameras used by the have sta on site for at least a year after One of the major funders of the dows. ere will be no exterior adver- Street and Grand Boulevard. driver as navigation aids. ere are en- the QLine begins running. $187.3 million streetcar project is tising, but there could be vinyl wraps on e track work is expected to be closed driver modules on either end of e cars’ exterior livery is white Quicken Loans Inc. founder Dan Gilbert the cars for special events. ere’s ex- complete before anksgiving. M-1 the car. e operators will have a cen- and red with a slight orange hue that’s — the online mortgage broker in 2014 pected to be some internal advertising. Rail must complete more than 1,000 tral digital screen that displays infor- formally called Red 23568 from Pitts- paid $10 million for the QLine naming Nothing can be placed on the cars’ system tests before state and federal mation about the status of the cars, a burgh-based coatings giant PPG In- rights — and Gilbert’s Detroit-based exterior paint for a few more weeks as regulators can certify the QLine ready radio, horns and the usual controls dustries. vinyl graphics company Fathead Inc. is the color cures. for passenger service.

nue to cover the 10 years of promised at condence will be rst tested transportation millage to go in front of son, a former University of Detroit operating funding. M-1 estimates it on Nov. 8. voters. Mercy professor and longtime transit FROMRTA PAGE 1 needs to raise an additional $7 million e pro-RTA tax advocacy cam- researcher who was a member of the Why the skepticism? to $12 million to esh out its reserve paign, Citizens for Connecting Our team that developed the initial con- is scheduled to assume governance of fund. While M-1 executives and RTA Communities, is running what’s be- cept that became M-1 Rail. He’s now the streetcar line from the nonprot e operating cost estimate hinges backers profess optimism about the lieved to be a $6 million yes-vote eort. teaching at the College of Southern M-1 Rail. on M-1’s ridership predictions coming tax, skepticism isn’t unwarranted. It declined to share its polling data on Maryland. e current estimate to operate the true. Passenger trips in the rst calen- at’s because of metro Detroit’s long the ballot issue. Instead, the organiza- Another possibility would be for streetcar service, known as the QLine, dar year will reach 1.8 million, and 5 history of failing to get a true regional tion released a statement: “We have the city to pay for M-1 directly, he is pegged at $5.8 million annually, on million within ve years, M-1 Rail mass transit system organized and never seen support for this issue at said. Even during its worst scal cri- average, and passenger service is ex- COO Paul Childs has said. funded. e failures date back more anything less than above 50-plus per- sis, the city continued to subsidize pected to begin in early 2017. Fears that M-1 wouldn’t have than 40 years. cent support.” the Detroit People Mover, Anderson Metro Detroit has a mixed history enough operating funding in place However, the RTA backers are ere’s no known organized oppo- said. e city provided $9.6 million in when it comes to mass transit, both in spooked the RTA’s political backers, banking on a recent trend of regional sition. Oakland County Executive L. scal 2015 for the People Mover — or funding and cooperation. prompting the transition of the street- taxes getting approved, including Brooks Patterson has long been a critic nearly double the QLine’s yearly op- M-1 began in 2007 as a privately or- car to public ownership to be pushed multi-county levies for the Detroit of regional issues, and his opposition erating budget. ganized and funded nonprot transit back by three years until 2027. Zoo and the Detroit Institute of Arts. to aspects of the RTA structure nearly “Adding a eet of a half-dozen project, and subsequently has added M-1’s total budget is a mix of dona- And when it comes to transportation scuttled the tax over the summer. RTA streetcars is not that crippling. e public funding to what is now a $187.3 tions from foundations, corporations, taxes, there are two notable success- backers acknowledge that the tax is city taking it over is worth having the million project. Its organizers have banks, hospitals, universities, and the es. likely to be unpopular in north and discussion,” he said. A message was said from the start that the intention is state and federal governments. at First is the Suburban Mobility Au- west Oakland County, and in Macomb left with Mayor Mike Duggan’s oce to create a system and then turn it over money is paying for organizational, thority for Regional Transportation. It County, but popular in southern Oak- seeking comment on whether the after 10 years to a public RTA to fund construction and operational costs. relies on a regional tax for a portion land County, Detroit and Wayne city has ever considered being a - and operate it. Transit systems worldwide require of its operational funding, and in Au- County. nancial crisis backstop for M-1 Rail. Running six streetcars along a 6.6- dedicated revenue sources to subsi- gust 2014 it got 66 percent of voters in e option of turning back to the mile loop on lower Woodward, ferry- dize operations. Almost none rely Wayne, Oakland and Macomb coun- Options major corporate donors who already ing 5,000 to 8,000 passengers daily, is solely on passenger fares to pay all the ties to approve a four-year operating If the RTA tax never gets voter ap- have spent millions on M-1 isn’t a par- forecast to cost $5.5 million annually bills. issue that boosted the system’s annu- proval, or is scaled back so much it ticularly desirable one, Anderson said. in its early years, then increase to $6.5 M-1 is rm in its belief that the tran- al tax funding by nearly $28 million doesn’t cover M-1 Rail, the streetcar “ e people who put the money in million by 2027 and $7.2 million by sit tax will get approved. If it doesn’t, from its previous $40 million annual service has options. the rst place, they have access to ad- 2035, according to M-1 data. the RTA can go back to voters every tax. A funding method discussed ditional resources if they have to pinch e streetcar project’s current bud- two years, giving M-1 six potential And in 2014, more than 70 percent when M-1 was still in the planning their nose and use them, but that’s not get includes $21.4 million for opera- elections to get its operation funding of voters in Ann Arbor, Ypsilanti and stage was tax increment nancing, or their intent,” he said. “Roger Penske tions. M-1 said that money is donor approved. Ypsilanti Township approved a new TIF, that’s a common economic tool could buy the system and run it, but he commitments rather than cash on “We are condent voters will pass 0.7-mill property tax to fund the Ann used by cities. A TIF arrangement, doesn’t want to do that.” hand. At $5.8 million annually over 10 the RTA millage this fall and that the Arbor Area Transportation Authority — which would require navigation of Finding money to run the streetcar, years, that’s $58 million needed to run QLine will be part of a successful a campaign led by Michael Ford, now city politics and approvals before a if the RTA tax never gets approved, the line. multi-modal transit system that serves the RTA’s CEO. Ann Arbor residents vote of property owners, captures shouldn’t be a crisis, Anderson said. M-1 CEO Matt Cullen has said Detroit and the region. M-1 Rail has already were paying a 2-mill AATA property taxes on only the increased “M-1 Rail is such a small thing, in funding in place so far covers opera- successfully raised over $180 million tax, while Ypsilanti residents already value of properties, or new structures terms of its overall size and complexi- tions through 2022, and the backers to date and has overcome many obsta- paid 1 mill for it. built because of the project, within a ty, it’s not that complicated,” he said. will work to have a reserve fund that cles since the inception of the project But November’s four-county RTA dened zone. Bill Shea: 313 (446-1626) will match fare and advertising reve- in 2007,” M-1 said. tax will be the rst major long-term at’s according to Scott Ander- Twitter: @Bill_Shea19 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 49

League Soccer stadium and other de- many incentives in 2011 when he re- veloper couldn’t capture any more reve- BROWNFIELD velopments on the site of the stalled structured the state’s tax code, has said nue than is necessary to make the proj- FROM PAGE 3 Wayne County Consolidated Jail on he will consider the bills if they land on ect nancially sound. at capture also Gratiot Avenue could be contenders. his desk. must be nancially positive for the state. LaFaive said. “ e ‘but for’ argument is Yet some suburban communities are Cullen said the idea isn’t to pad the “ e actual TIF reimbursement www.crainsdetroit.com really the standard operating procedure cautious out of concern the legislation pockets of billionaires; rather, the incen- would be just a fraction of those expens- Editor-in-Chief Keith E. Crain of those who are looking for special fa- might tilt incentives in favor of urban de- tive is likely to get a project o the ground es because it is subject to these caps,” Group Publisher Mary Kramer, (313) 446-0399 or [email protected] vors. ... at assertion cannot be disprov- velopment. that otherwise would never have re- Austin wrote. “In reality, the capture will Associate Publisher Ron Fournier, (313) 446-1674 or en, and I think that’s one of the reasons Oakland County leaders oppose the turned enough in revenue to oset the be just enough to close the nancial gap [email protected] why advocates use it so often.” bills as written, though not necessarily in cost. and make the project economically via- Editor Jennette Smith, (313) 446-1622 or [email protected] At issue in Michigan is a proposal to concept, in part for that reason. Under “ is tool is not intended to take peo- ble as determined by the state.” Director, Digital Strategy, Audience Development Nancy capture new sales and income tax reve- the legislation, projects that qualify for a ple to 15 to 20 percent (returns),” Cullen LaFaive, of the Mackinac Center, said Hanus, (313) 446-1621 or [email protected] nue generated at completed develop- transformational browneld incentive said. “it’s an open question” on whether TIF Managing Editor Michael Lee, (313) 446-1630 or [email protected] ments from new shoppers and resi- would need to be mixed-use with resi- Instead, he said, the incentive might districts work as advertised, and that it Managing Editor/Custom and Special Projects Daniel dents. e capture would be oered to dential and commercial elements. Mat- take a project to a 7 percent to 8 percent will be incumbent upon lawmakers to Duggan, (313) 446-0414 or [email protected] developers who pursue what would be thew Gibb, a deputy Oakland County return — and it assumes the developer is show that the incentive would not come Assistant Managing Editor Kristin Bull, (313) 446-1608 or [email protected] called “transformational browneld executive, recently proposed changes in bearing all the risk on construction costs, at a net cost to taxpayers. Digital Editor Carlos Portocarrero (313) 446-6056 or projects,” or large development projects a letter to Sen. Ken Horn, the Franken- how fast the property is leased and rental “It’s hard to tell until it happens, and [email protected] that require cleanup of environmental muth Republican who introduced the rates. even then, once it’s happened, the horse News Editor Beth Reeber Valone, (313) 446-5875 or [email protected] contaminants — such as lead or asbes- main bill in the package, to allow devel- A bank won’t loan money to a project is out of the barn,” he said. Senior Editor Gary Piatek, (313) 446-0357 tos — or are blighted and obsolete prop- opment that doesn’t contain mixed uses if income from rent doesn’t cover the an- or [email protected] erties. if the property is a single-use site with an nual interest and debt service payments, The conditions Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] Incentives are a touchy subject in “obsolete or inoperable arena, stadium he said. If approved, the bills would require Newsroom (313) 446-0329, FAX (313) 446-1687, Michigan. Many concerns about tax or shopping center.” “If we want to do this next wave of the municipality in which the brown- TIP LINE (313) 446-6766 credits are rooted in the state’s struggle at change would improve the re- projects, we can’t get the nancing and eld project is located and the Michigan REPORTERS to fund competing budget priorities development chances of the Pontiac the economic return isn’t there to even Strategic Fund, within the Michigan Marti Benedetti General assignment (313) 446-0416 or [email protected] with limited general fund dollars. Cities Silverdome and the shuttered North- allow us to go forward with it,” Cullen Economic Development Corp., to sign Jay Greene, senior reporter Covers health care, insurance, have had to absorb cuts to state revenue land Center in Southeld and Summit said. “In this instance, we’re saying it’s o on a developer’s plan before award- energy, utilities and the environment. sharing, which aects the amount of Place mall in Waterford Township, Gibb not because we don’t have equity, it’s being an incentive. at review would in- (313) 446-0325 or [email protected] Chad Halcom Covers litigation, the defense industry, money available for local priorities. And said. cause the projects don’t work without a clude a nancial analysis. education, Macomb and Oakland counties. (313) 446-6796 former incentive programs have left the e Silverdome site will never sup- little bit of support.” e tax captures would be used to or [email protected] state on the hook for billions of dollars in port commercial and residential uses, One noted observer of sports venues, pay for browneld-eligible costs, such as Tom Henderson Covers banking, nance, technology and biotechnology. (313) 446-0337 or payments. Gibb told Crain’s. He said the bill should which often today are coupled with building demolition, construction or [email protected] e incentive would be oered in ex- oer enough exibility for communities mixed-use “stadium district” develop- restoration and other site work. A Kirk Pinho Covers real estate, city of Detroit. (313) change for a minimum investment of to dene what “transformational” ment, isn’t surprised that Gilbert and his browneld TIF could last for up to 30 446-0412 or [email protected] Adrienne Roberts General assignment, retail. (313) private money into the project — at least means — such as an auto research facil- allies are seeking a new blend of tax cap- years, Cullen said, though the capture is 446-1612 $500 million in Detroit, less in smaller ity in place of a former stadium. tures to subsidize projects. only intended to be in place for as long as Bill Shea, enterprise editor Covers media, advertising and communities based on population. “As sports team owners start getting needed to pay for the project. marketing, the business of sports, and transportation. Captures elsewhere (313) 446-1626 or [email protected] e plan is supported by the Michi- more pushback to their subsidy de- e Michigan Strategic Fund could Lindsay VanHulle, Lansing reporter. (517) 657-2204 gan Municipal League, chambers of Michigan would not be the rst state mands, they’ve been searching farther only approve ve transformational or [email protected] commerce and cities across the state, to allow the capture of sales taxes in and farther aeld for ways to get public browneld projects in the state each Dustin Walsh, senior reporter Covers the business of law, auto suppliers, manufacturing and economics. including Sterling Heights, which is eye- tax-increment nancing districts. Six- money to pay for their new venues,” said year, and only one per community. (313) 446-6042 or [email protected] ing the enhanced browneld incentive teen states already allow sales tax to be Neil deMause, a New York City-based Under the incentive, up to 25 percent Sherri Welch, senior reporter Covers nonprots, services, in the event owners of retail centers such an eligible revenue source in a TIF dis- journalist and co-author of a book, Field of residential income taxes paid by resi- food and hospitality. (313) 446-1694 or [email protected] ADVERTISING as Lakeside Mall decide they want to trict, according to the National Confer- of Schemes, that took a critical look at dents of the new development generally Sales Inquiries (313) 446-6032; FAX (313) 393-0997 update the properties. ence of State Legislatures and the Co- public funding for pro sports stadiums. would be captured, though the amount Advertising Director Matthew Langan Communities from Kalamazoo to lumbus, Ohio-based Council of “Since TIFs and STIFs — sales-tax could be expanded to half in some cir- Senior Account Manager Katie Sullivan Saginaw say they have pent-up demand Development Finance Agencies, TIFs, like what Gilbert is seeking — have cumstances. Advertising Sales Christine Galasso, Gerry Golinske, Diane Owen, Sarah Stachowicz for new housing or projects that could be though it was unclear whether that cap- an aura of ‘new money we wouldn’t be Horn said the intent of the legislation Classied Sales Manager Angela Schutte, ready to go if developers could line up ture applied to browneld TIFs. In a getting otherwise,’ it’s often easier for sta- is to preserve funding for schools and (313) 446-6051 the necessary nancing. 2015 report, the council wrote that sales dium seekers to get approval of kick- other designated uses and capture a Classied Sales Lynn Calcaterra, (313) 446-6086 Marketing/Events Director Kim Winkler Rock Ventures could be able to move tax captures mostly served “retail TIFs.” backs of this kind of tax money than portion of tax revenue that is currently Events Manager Kacey Anderson on at least $2 billion in projects with the A few states oer income tax incen- straight-up checks from the general undedicated. Senior Art Director Sylvia Kolaski enhanced incentive, Cullen testied to a tives for browneld projects, according fund,” deMause said. “ e strategic fund, when they do the Marketing Manager Marilyn Banes Special Projects Coordinator Keenan Covington Senate committee, which unanimously to the National Conference of State Leg- At least one analysis of the legislation underwriting, they don’t approve it un- Sales Support Suzanne Janik approved the bills last week. ey await islatures. suggests a “likely significant” impact to less it’s demonstrated to be net nan- Production Manager Wendy Kobylarz a vote on the Senate oor, though the Gilbert, Horn and regional economic Michigan’s general fund in the form of cially benecial to the state,” Cullen said. Production Supervisor Andrew Spanos Senate isn’t scheduled to meet again un- development agencies across Michigan lost revenue, according to a recent report “ e state would have to conclude that CUSTOMER SERVICE Main Number: Call (877) 824-9374 til mid-October. contend that the state doesn’t have from the Senate Fiscal Agency. That because of the project, they make more or [email protected] Cullen has not disclosed details about enough nancial tools to make large could depend on how many projects are money tomorrow than they do today.” Subscriptions $59 one year, $98 two years. Out of state, potential projects. But it’s possible that projects nancially feasible or to help approved in one year, it wrote, and the Jeremy Hendges, deputy director of $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) proposals to revamp the J.L. Hudson’s Michigan compete with other states that method the state uses to determine legislative aairs for the MEDC, said in a 446-0450 or (877) 824-9374. department store on Woodward Ave- oer more generous incentives. whether sales tax revenue came from a statement: “ is is a legislative proposal Single Copies (877) 824-9374 nue and build a $1 billion Major Gov. Rick Snyder, who eliminated particular development. e Michigan that is being brought forward and we are Reprints (212) 210-0750; or Krista Bora at [email protected] Department of Treasury doesn’t track still evaluating and analyzing the pro- To nd a date a story was published (313) 446-0406 or the origin of sales tax revenue. posal. At this time, we are not able to pro- e-mail [email protected] INDEX TO COMPANIES But the scal agency also suggested, vide an accurate assessment to the ques- Crain’s Detroit Business is published by These companies have signicant mention in this week’s Crain’s Detroit Business: based on its interpretation of the bill, that tions that were posed, as we are still Crain Communications Inc. Chairman Keith E. Crain 2941 Street Foods LLC ...... 3 Loomis Sayler & Co. LP ...... 38, 40 the tax captures would not be capped evaluating the proposal and the poten- President Rance Crain American Center for Mobility ...... 34 M-1 Rail ...... 1, 48 “other than equaling the sum of all costs tial impact.” Treasurer Mary Kay Crain Senior Executive Vice President William A. Morrow Annie Mac Financial LLC ...... 38, 39 Mackinac Center for Public Policy ...... 3 permitted to be funded under the bills.” e bills include checks and balances Executive Vice President/Director of Strategic Aubrey Lee Jr., Reedus and Plowden Group . 37, 39 Managed Asset Portfolios LLC ...... 38, 39 Its authors wrote that that “would eec- with requirements that cities and the Operations Chris Crain Blue Cross Blue Shield of Michigan ...... 5 MichAuto ...... 35 tively impose no limit on the amount of state both will have to vet — and approve Executive Vice President/Director of Corporate Operations KC Crain Brogan & Partners Convergence Marketing ..... Mich. Dept. of Licensing & Regulatory Aairs ..47 1 revenue captured,” and as such the cap- — the browneld plans, said Jennifer Vice President/Production & Manufacturing Butzel Long PC ...... 38, 46 Michigan Economic Development Corp...... 49 ture could exceed $500 million on a De- Rigterink, legislative associate for the Dave Kamis Center for Healthcare Research & Transformation .5 Michigan Municipal League ...... 49 troit project. Michigan Municipal League. Chief Financial Ocer Bob Recchia Chief Information Ocer Anthony DiPonio Crain Communications ...... 11 Michigan Public Service Commission ...... 4 e legislation also does not include The league initially supported the bills G.D. Crain Jr. Founder (1885-1973) Detroit Built ...... 19 Michigan Solar Solutions ...... 4 any clawback of incentive payments “in concept,” but has now thrown its full Mrs. G.D. Crain Jr. Chairman (1911-1996) Detroit Children’s Fund ...... 36 Plante Moran Financial Advisors LLC ...... 38, 40 should the expected amount of private support behind it after lawmakers low- Editorial & Business Oces Detroit Medical Center ...... 3 Regional Transit Authority of SE Michigan ...... 1 investment not happen, according to ered the minimum private investment 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Detroit Regional Chamber ...... 46 Robinson Capital LLC ...... 38, 40 the agency. limit for the smallest communities. Cable address: TWX 248-221-5122 AUTNEW DET Detroit Urban Investment Fund ...... 16 Rock Ventures ...... 3 Dan Austin, a senior account execu- “Five projects a year is not many,” CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the third week of November, and no issue the Fih Third Bank ...... 38, 39 Skillman Foundation ...... 36 tive with Detroit-based Van Dyke Horn Rigterink said. “It’s another tool in the third week of December by Crain Communications Inc. at 1155 Gratiot Forgotten Harvest ...... 6 Spickler Wealth Management Group ...... 37, 40 Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and Public Relations who represents the co- toolbox, and honestly, we’re glad to see additional mailing o¦ces. POSTMASTER: Send address changes to Gather ...... 43 Telemus Capital LLC ...... 38, 40 alition backing the proposal, said in an the state have some skin in the game.” CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Gregory J. Schwartz & Co...... 37, 40 University of Michigan ...... 5 email the amount of tax revenue actually Lindsay VanHulle: (517) 657-2204 Contents copyright 2016 by Crain Communications Inc. All rights The Kulhavi Team ...... 37 University of Michigan Energy Institute...... 4 captured would be subject to need and Twitter: @LindsayVanHulle reserved. Reproduction or use of editorial content in any manner without permission is prohibited. LJPR LLC ...... 38, 39 Will Leather Goods ...... 15 the “overall benet test,” meaning a de- Bill Shea contributed to this report. 50 CRAIN’S DETROIT BUSINESS // SEPTEMBER 26, 2016 ON THE WEB WEEK SEPT. 17-23 RUMBLINGS Snyder adds state’s top Detroit Digits Southeld campus. n e Detroit Tigers began ticket HopCat to open in doc to Cabinet, creates A numbers-driven look at last sales for potential postseason week's headlines: American League Wild Card and public health panel Division Series home games, exclusively online via tigers.com. downtown Royal Oak he state’s top doctor, Chief n e Detroit Lions fell three spots Medical Executive Eden Wells, 200 to 20th in the annual fan loyalty “Crack fries” and craft beer are other standard permits. T The number of additional shoppers will join Gov. Rick Snyder’s Cabinet survey from New York City-based coming to downtown Royal Oak with Woody’s and Onyx will close in to be hired by Shipt Inc., an and report directly to him in the wake market research rm Brand Keys Inc. the scheduled rst-quarter 2017 early October. Employees will be app-based grocery delivery service of Flint’s water crisis, AP reported. n Global automakers are expected opening of the sixth HopCat restau- given the rst opportunity to apply for company working with on Snyder signed an order establishing Meijer to descend on Tokyo at the end of the rant and bar in Michigan. jobs at HopCat in Royal Oak. BarFly the launch of the Grand Rapids the O ce of the Chief Medical month to decide the fate of embattled Grand Rapids-based BarFly Ventures plans to hire 130 hourly area-based retailer’s home delivery Executive and creating the Public Japanese supplier Takata Corp. Ventures LLC, the parent company of employees for the restaurant. service in metro Detroit. Shipt had Health Advisory Commission. e Executives from Takata customers, HopCat, and landlord Innovo hired 300 shoppers before the moves were recommended by a task among them General Motors Co. and Development Group LLC will service’s launch Sept. 15. force that deemed state government to Ford Motor Co., will review oers from spend about $3.5 million to be primarily responsible for Flint’s lead several bidders for the company, a renovate the 11,700-square- contamination. supplier of seatbelts and airbags that foot space at 208 W. Fifth St., in $1.4 million is responsible for the largest recall in the current home of Woody’s The high bid for nearly a half-acre automotive history. and Onyx across from O’Tooles COMPANY NEWS of property in Detroit’s Brush Park n According to a study by the Ann in a busy entertainment block n Ascension Michigan is rebranding in an auction by an unnamed Arbor-based Center for Automotive of the Oakland County city. its 15 hospitals, employed medical buyer. The property includes two Research, more than 1.1 million U.S. e HopCat in Royal Oak groups, subsidiaries and other sites of buildings, owned by Brush Los workers would lose their jobs because will feature 130 taps on the care to prominently feature the LLC, in an area where hundreds of of tougher fuel-economy regulations building’s rst oor, along with Ascension name, as part of a national millions of dollars in new coming in the new few years if prices an additional 30 taps of its investment is planned or under GOOGLE STREET VIEW plan under St. Louis-based parent at the gasoline pump remain low in “Local 30” (Michigan beers) and its landlord plan to spend development. HopCat Ascension Health. For example, America, Bloomberg reported. selections at the second oor $3.5 million to renovate the current home of Providence Hospital in Southeld will bar. Like each HopCat location, Woody’s and Onyx to open a new Royal Oak soon be known as the Royal Oak spot will have its Ascension OTHER NEWS location early next year. Providence Hospital and St. John $2.5 million own beer program manager, so Hospital in Detroit will become The amount of a multiyear pledge n Winners of the CREW Detroit the selection will be dierent from the e Royal Oak location will be the Ascension St. John Hospital. from Southeld-based Lear Corp. Impact Awards, announced at the oerings in Detroit or Ann Arbor. 13th HopCat for BarFly Ventures, n San Francisco-based ride-hailing to Wayne State University to 15th annual Commercial Real Estate BarFly Ventures has a 15-year lease which opened the rst HopCat in company Uber Technologies Inc. is support an auditorium at the Women luncheon, were Link Detroit, a for the space. e architect is AECOM Grand Rapids in 2008. Next to open is planning to open a facility in the university's new Mike Ilitch School series of infrastructure improvements and the general contractor is Grand a HopCat in Kalamazoo on Oct. 8 and Detroit area, Automotive News of Business, which will be named to the city’s nonmotorized pathways; Rapids-based Wolverine Building another in Kansas City that will open reported. e exact location, size of the the Lear Auditorium. Jimmy John’s Field in Utica; Wayne Group. It is still waiting for approvals just before the Royal Oak restaurant in facility and number of employees have State University’s Integrative for a liquor license transfer, among early 2017. yet to be determined. Bioscience Center; and the Michigan n Metro Health Corp., a Wyoming, n Troy-based Flagstar Bancorp Inc. Humane Society’s Detroit Animal Care Mich.-based 208-bed hospital, and the announced a ve-year $10 million Campus. Kresge CEO talks about Detroit in Hong Kong University of Michigan Health System economic development program for n e way old cities are designed in Ann Arbor signed an a liation the city of Pontiac. It includes and redeveloped is going through an Kresge Foundation President and Detroit, including lessons learned agreement that they hope to close by $5 million in home mortgages; equity revolution, according to a CEO Rip Rapson was in Hong Kong from the Grand Bargain, the deal that the end of the year. Details of the $2.5 million for small businesses, panel of planners, developers and this past week to speak at leveraged foundation transaction, in which Metro Health startups and business attraction; designers at the Detroit City of Design the inaugural international money in Detroit’s bank- will become a subsidiary of UMHS, $1.5 million for the previously Summit. Last week’s summit was part philanthropy forum of the ruptcy to help pay for city were not readily available. announced naming rights for the of the sixth Detroit Design Festival. Hong Kong Jockey Club retirees’ pensions while n e Troy-based Kresge Flagstar Strand Theatre for the n Detroit Metropolitan Airport in Charities Trust, the saving the art at the Detroit Foundation and Bloomeld Hills- Performing Arts; and $1 million for Romulus will receive more than sixth-largest private charity Institute of Arts from being based Fred A. and Barbara M. Erb nancial literacy. $20.6 million from the Federal foundation in the world, sold. Family Foundation announced n Lawrence Technological Aviation Administration for runway according to World Charity Top-most among those $9 million in combined funding for University dedicated its new $16.9 rehabilitation work, and Oakland Index 2015. lessons, according to metro Detroit arts groups. e grants million, 36,700-square-foot A. Alfred County International Airport in About 1,000 industry Rapson: e need to will provide unrestricted operating Taubman Engineering, Architecture Waterford Township is receiving experts, policy makers, Rapson embrace a level of risk support for the grantees. and Life Sciences Complex at its $5 million from the FAA to help philanthropists and commensurate with the rehabilitate and strengthen a taxiway. nongovernmental organiza- challenge at hand, the n e Michigan Department of tion leaders were expected to attend fundamental interdependence of the Insurance and Financial Services issued the event. philanthropic sector and “the wisdom a cease-and-desist order against Rapson spoke on philanthropy in of community voice.” Terrell Lee Smith, a Farmington man also known as Sam, for selling fraudulent automobile insurance certicates through his SBS Agency. Gilbert, AOL CEO to headline mobility event Chairman president of strategic development for OBITUARIES Quicken Loans Inc. Dan Gilbert and AOL Inc. CEO Tim Qualcomm; Marcus Welz, CEO of n Timothy Brown, owner of the Armstrong will headline online Siemens Intelligent Trac Systems; Colonial Inn in Harbor Springs and automotive industry information site Melissa Cefkin, anthropologist for two hotels in St. Ignace, died Sept. 17 Autoblog’s conference on mobility Nissan Research Center; and many with his wife and son in a plane crash next month. others. in Montana. He was 64. e two executives will be on stage e event will focus on the future n John Kelly, a longtime WXYZ- to discuss innovation in Detroit for of mobility, including self-driving CHRIS EHRMANN Channel 7 personality known for the event, called Upshift, at the Rusas cars, multi-modal transit, shifting Visitors to the Eastern Market district in Detroit were treated to 35 new murals “Kelly and Company” and other Printing Building in Detroit on Oct. 6. populations and infrastructure created last week as part of the second annual Murals in the Market. More than 50 Detroit television shows, died Sept. Other speakers include Bret planning. local, national and international artists took part in the event, which was produced 17. He was 88. Greenstein, vice president of IBM Inc.’s Autoblog is based in Birmingham by 1xRUN in collaboration with Eastern Market Corp., the John S. and James L. Knight n Kurt Tech, retired president of Watson internet-of-things platform; and owned by AOL. Foundation and Inner State Gallery. At the corner of Riopelle and Winder street is Fraser-based machine tool maker The Tiany Rad, founder and CEO of Tickets for the event at $100 and artists Patch Whiskey and Ghostbeard’s mural in Eastern Market. Cross Co., died Sept. 18. He was 94. Anatrope Inc.; Chris Borroni-Bird, vice can be purchased at autoblog.com. PN Full pg_DBpageAD.qxd 9/23/2016 11:06 AM Page 1

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