MARCH 13 - 19, 2017

Power Second outage stage: family primer business The business costs of power When and how to look failures, outside the family for Page 3 leadership, Page 18

Manufacturing Management Williams Int’l in talks for major Pontiac move EMS story has a production facility in Ogden — Aircra engine maker considering former lm site as possible locations. In 2003, Crain’s reported that the company opened a By Kirk Pinho hundreds of jobs to the Pontiac site cent land that would be developed plant in Huntsville, Ala., the previous reveals [email protected] where “Batman vs. Superman” was into a new manufacturing plant, ac- year. A deal for property bigger than the lmed during the days of Michigan’s cording to multiple sources familiar e sources said a vacant Pontiac Silverdome site is in the generous lm incentives before such with the talks who requested ano- 368,000-square-foot oce build- Duggan works that could bring a large de- work zzled. nymity. ing, the 185,000-square-foot Michi- fense contractor to the Oakland As currently planned, Williams Williams International did not re- gan Motion Picture Studios LLC County seat. International, which develops and spond to multiple requests for com- movie studio building and the site While nothing has been nalized, builds small gas turbine engines for ment. of a demolished General Motors playbook Commerce Township-based Wil- cruise missiles, planes and drones, Two sources said the company is trucking plant would be sold to Wil- liams International Co. LLC is get- would buy more than 550,000 square also looking at other states — Ala- liams. By Chad Livengood ting close to bringing potentially feet of space and 120 acres of adja- bama and Utah, where the company SEE WILLIAMS, PAGE 28 [email protected] Quicken Loans founder Dan Gil- bert, Detroit’s single largest job-provider and downtown land- SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS lord, recently asked Mayor Mike Duggan wheth- er he’s always been a hands- on CEO. Full steam ahead e mayor, who is seeking re-election, welcomed the softball ques- tion. Yes, he re- plied, of course. Mike Duggan: In the joint ap- Data focus moved pearance be- needle on EMS. fore a friendly crowd of Gilbert employees, Dug- gan told a story that he doesn’t nor- mally tell in public that attempted to burnish his own image as a boss who demands — and gets — re- sults. It was a rare glimpse into a mayor- al management style that has a re- usinesses are growing in the Blue Water region, the craft lentless focus on measurable data — and no excuses — by a leader with beer is brewing, and the pace of development continues deep experience both in and out of to accelerate. rough it all, philanthropists, business government. Bowners, educators, and real estate developers are collaborating in “What you nd in government is it usually doesn’t work very well,” said innovative ways to build competitive talent pipelines, attract in- Duggan, a former Detroit Medical vestors to new ventures, and invigorate downtown life. Read Center CEO. about the investment rm that chose to locate its $19 million “We agree with that,” Gilbert re- fund in St. Clair instead of Chicago, the brewery that’s planning a plied. “And it doesn’t execute details $5 million, 10,000-beer-barrel expansion, a “reverse scholarship” very well,” Duggan said. “So things that pays people to relocate to the area, and more in our Crain's like the ambulance not showing Michigan Business special report, Page 10 up for a half hour was because no- body hired the EMTs, nobody re- paired the ambulances — it was a PHOTO COURTESY ST. CLAIR COUNTY ECONOMIC DEVELOPMENT ALLIANCE whole lot of details. So I had to build a culture in the city of people committed to managing the de-

© Entire contents copyright 2017 tails.” by Crain Communications Inc. All rights reserved Rock Connections to add Duggan revealed at a March 1 crainsdetroit.com Vol. 33 No 11 $2 a copy. $59 a year. meeting of 300 executives from Gil- 500 workers by year’s end bert’s family of companies that he demoted Emergency Medical Ser- Gilbert’s call center business continues to grow, Page 3 vices Superintendent Sean Larkins in August 2014 after Larkins gave “excuses” about why average EMS response times were stuck at 12 min-

NEWSPAPER utes. SEE DUGGAN, PAGE 28 2 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017

INSIDE MICHIGAN BRIEFS CALENDAR 24 CLASSIFIED ADS 25 State Commission: ter school landscape, and the state’s solution to stop the carp from en- DEALS & DETAILS 24 Consider abolishing generous schools-of-choice law, un- tering the world’s largest freshwater Board of Education der which more than 120,000 stu- system. KEITH CRAIN 8 dents attend a public school outside If they aren’t stopped, ocials MARY KRAMER 9 A commission convened to o er of district boundaries. fear the aggressive sh will crowd OPINION 8 reforms to Michigan’s troubled edu- e 25-member commission, cre- out prize native sh and hamper cation system recommends a major ated by Gov. Rick Snyder early last recreational boating in large sec- PEOPLE 24 shift in oversight power to the gover- year, was charged with recommend- tions of the lakes, which stretch RON FOURNIER 8 nor's oce — and the possible abo- ing long-term, course-altering chang- from Minnesota, Wisconsin and RUMBLINGS 30 lition of the State Board of Educa- es to the state’s oundering K-12 edu- Michigan in the west to New York tion. cation system. Michigan public and Pennsylvania in the east and WEEK ON THE WEB 30 e report by Michigan’s 21st Cen- schools have slid into the bottom tier from Ontario, Canada, in the north COMPANY INDEX: tury Education Commission, re- of states nationally over the past de- to Illinois, Indiana and Ohio in the SEE PAGE 29 leased Friday, forwards two propos- cade despite frequent e orts at re- south. als that would grant the governor form. authority to appoint board of educa- Adding more urgency to the chal- Report: Incentives not nior economist Timothy Bartik, es- tion members, while a third proposal lenge are projections showing that Michigan is turning to the public for new used eectively timates that incentives o ered by would have the governor appoint the the next decade is likely to produce a ideas and plans to o er a prize to state and local governments across state superintendent and “abolish” serious shortage of college graduates whoever comes up with a way to stop Michigan had higher business the U.S. totaled $45 billion in 2015 the SBE. Currently, the eight-member or certicate holders to ll the skilled- Asian carp from entering the Great incentive costs in 2015 than some — three times higher than in 1990. board is elected directly by statewide job openings of employers in the Lakes. neighboring states, even after the Yet many states, Michigan includ- vote. state. state jettisoned many of the tax in- ed, don’t e ectively target their in- “is approach recognizes that the e 146-page report proposes a se- Michigan to oer prize in centives it once o ered, new re- centives programs at industries governor is in charge of education ries of other reforms that would cost Asian carp ght search shows. that pay the highest wages or spend and the public has clear accountabil- upwards of $2 billion more a year if Incentive costs in Michigan, as a the most on research and develop- ity measures if they are not pleased fully funded. Among recommended Faced with the threat that Asian percentage of the state’s economy, ment. with the outcomes,” the report states. reforms was more funding for at-risk carp could enter the Great Lakes, were 49 percent higher than in In Michigan, incentive costs e highly anticipated report also students in high-poverty schools, a Michigan is turning to the public Ohio, 35 percent higher than in Illi- grew 16 percent from 1990 to 2015, appears to o er support for the con- strategy the study estimates could for new ideas and plans to o er a nois and 27 percent higher than in even as the state scaled back its in- tinued use of a state assessment that cost anywhere from $110 million to prize to whoever comes up with a Wisconsin, according to a report centives programs shortly after is aligned with the Common Core $900 million a year. e report also way to stop the voracious sh, e out today from the W.E. Upjohn In- Gov. Rick Snyder took oce in state standards. proposed better teacher preparation, Associated Press reported. stitute for Employment Research in 2011. But commissioners could not with heightened certication re- Michigan’s global search chal- Kalamazoo. Of neighboring states “We have a long way to go to im- reach a policy consensus on two oth- quirements and mandated year-long lenge comes after the U.S. govern- surveyed, only Indiana had higher prove incentives,” Bartik told re- er divisive issues in state public edu- residency training as part of the four- ment and others have spent hun- incentive costs. porters on a conference call ahead cation — Michigan’s expansive char- year college teaching degree. dreds of millions searching for a e report, written by Upjohn se- of the report’s release.

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LISA SAWYER/CRAIN’S DETROIT BUSINESS

Employment Nonprots Microloans give women entrepreneurs a boost

By Sherri Welch bottle-labeling machine and to make [email protected] a part-time employee full-time. Microloans and a pitch competi- Perhaps more importantly, the tion launched by the Michigan Wom- loan boosted her condence, Mc- en’s Foundation over the past few Clary said, and helped her establish years to support women entrepre- business credit. It was the rst loan neurs are quietly helping to create she secured for her startup, then three jobs. years old. e foundation is among a growing “We went from having to have cash number of groups making small, up front to being able to get net terms high-risk loans of under $50,000 to and getting 30 or 45 days to pay for entrepreneurs that banks won’t touch. materials,” McClary said. e loans are helping people like at made a huge dierence in the Jess Sanchez McClary, founder of Mc- company’s cash ow and set it on a Clary Bros. drinking vinegars, get an path for growth. early start they might not otherwise McClary Bros. is one of 85 compa- have had because their credit isn’t nies that have beneted from $1.23 good enough, they have little or no million in microloans made by the collateral and often haven’t produced foundation since mid-2014 and/or any revenue yet. $335,000 in prize money awarded With a $40,000 loan from the foun- through its business plan pitch com- dation made in 2015, McClary was petition over the past ve years. LARRY PEPLIN able to purchase a semi-automatic SEE LOANS, PAGE 29 Shevawn Cage works at the Rock Connections call center in Detroit. The company has doubled its workforce since moving into the building next to Ford Field and I-375 last May. Retail’s real impact Rock Connections to add 500 workers this year MUST Ron Fournier: A trip to two stores shows how businesses’ impact By Chad Livengood 1900 Saint Antoine next to Ford space downtown, or additional I READS echoes through decades, Page 8 [email protected] Field, said Victor You, CEO of Rock should say,” You said in an interview A call center company spun o Connections. with Crain's. OF THE from Quicken Loans' telephone-fo- e fast growth adds teeth to Gil- e company has doubled its WEEK cused mortgage sales operation is bert’s observation that call centers workforce since moving into the planning to add 500 employees by could be a growth industry for De- building next to Ford Field and I-375 Taking aim year's end and looking for additional troit and create a “point of entry” to last May. at tumors oce space in downtown Detroit. jobs for residents. And the company Rock Connections is hiring 50 new Rock Connections, a ve-year-old is adding customers outside Gil- employees each month, You said. Ann Arbor’s HistoSonics gains new call center and part of Quicken bert’s own vast array of corporate “Our goal is to get to 1,300 team leadership, funding, Page 4 Loans founder Dan Gilbert's family holdings. members by the end of this year," of companies, has reached capacity “We’ve outgrown that building, You said. with 800 employees in its building at and now we’re looking for new oce SEE ROCK, PAGE 29 4 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 HistoSonics gains new leadership, funding, turns focus to oncology By Tom Henderson [email protected] HistoSonics Inc., an Ann Ar- bor-based maker of ultrasonic medi- cal devices aimed at shrinking or de- stroying cancer tumors, has a new CEO, a new chief medical o cer and a new $8.2 million round of ven- ture-capital funding to pay for upcom- ing human trials. Mike Blue, a veteran executive at oncology-device companies, has been recruited to the University of Michigan spino from Minneapolis, where he had been vice president of sales for NeuWave Medical Inc., a company that made minimally invasive devices that used microwaves to shrink TOM HENDERSON soft-tissue lesions. It was sold last year Mike Blue, a veteran executive at oncology-device companies, has been recruited as to a unit of Johnson & Johnson. president and CEO of HistoSonics. Previously, Blue had been vice president of sales in the interventional ond target after liver cancer,” Blue said. practice treating cancer patients. lung solutions division of Covidien “I’m extremely enthusiastic we Lee will help oversee a 10-patient and was a regional sales manager for were able to recruit Mike Blue as our study that is scheduled to be done in the interventional oncology business CEO and Dr. Fred Lee as our senior the third quarter this year by a sur- at Boston Scientic. medical adviser,” said Jim Adox, who geon in Spain named Dr. Joan Vidal- “I’ve spent 17 years in intervention- runs the Ann Arbor o ce of Venture Jove, a surgical oncologist. al oncology, and HistoSonics aords Investors. “I know Mike and Fred well Patients will be reviewed two me the chance to continue my career and have rst-hand condence in months after their surgery to monitor in oncology,” said Blue, who replaced their capabilities.” healing and tumor shrinkage. Christine Gibbons as president and Lee will remain in Wisconsin, “We’ll know a lot more about the CEO. She remains with the company where he runs an animal lab at the regulatory pathway after we nish this as COO. University of Wisconsin, where he is conrmation study,” said Blue. Blue said the $8.2 million in fund- doing pre-clinical work for HistoSon- Tom Henderson: (231) 499-2817 ing was the rst close on HistoSonics’ ics on 30 pigs. He also has a medical Twitter: @TomHenderson2 Series B round, with a second and nal close of $5 million scheduled for early in the second quarter. “We’ve got a real opportunity to de- velop a new platform for cancer care,” he said. Joining him at HistoSonics is Fred Lee, M.D., who had been a co-founder and chief medical o cer at NeuWave, a portfolio company of Madison, Wis.- based Venture Investors LLC, which invested $1.55 million of the $8.2 mil- lion for HistoSonics and previously led the $14.2 million Series A round the company raised after it was spun o from UM in 2009. Joining Venture Investors in this funding round are the Grand Angels of Grand Rapids; the University of Mich- igan’s Wolverine Venture Fund; e ZKHUH MINTS (Michigan Investment in New Technology Startups) program at UM; H[WUDRUGLQDU\ Hatteras Venture Partners of Durham, N.C.; Fletcher Spaght Ventures of Bos- KDSSHQV ton; TGap Ventures of Kalamazoo; and every day Early Stage Partners of Cleveland. Originally, HistoSonics, which em- ploys 12, planned to focus on noninva- sively shrinking swollen prostates as well as targeting cancerous tumors but will focus, now, on oncology. Led by renowned “Based on a growing body of pre- faculty in world-class facilities, clinical evidence and changing mar- Detroit Country Day School delivers ket dynamics, the decision was made exceptional academic experiences both within to focus all eorts on cancer and, in and beyond the classroom each and every day. the short term, specically liver can- cer,” said Blue. 248.646.7717 | www.dcds.edu/cta Measured by ve-year survival rates, liver cancer is the second-dead- Dancance Showcase: YYoounu g Artists in Motioon Photo by Phill Matora ana d Mary L. Pettitti liest cancer and not very responsive to chemotherapy and radiation. Its ve- LOWER SCHOOL JUNIOR SCHOOL MIDDLE SCHOOL UPPER SCHOOL year survival rate is 17 percent, com- Grades PK-2 Grades 3-5 Grades 6-8 Grades 9-12 pared with 7 percent for pancreatic -2,186)25 cancer, the deadliest kind, according Celebrate the Arts to the American Cancer Society. $35,/_)8//(9(176&+('8/($7:::'&'6('8&7$ “Pancreatic cancer will be our sec- CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 5 Autobooks closes $5.5 million venture capital round By Tom Henderson to Detroit soon. between $10 million and $100 million [email protected] “It’s something the team feels pret- a year. Troy-based Autobooks LLC, which ty strongly about,” he said. In its presentation at Accelerate won the runner-up prize of $100,000 One of the newest employees is Michigan Innovation, Autobooks at last November’s Accelerate Michi- Henry Balanon, who became chief projected revenue of $50,000 last gan Innovation event in Detroit, has product ocer in October. Previous- year, $750,000 this year, $4 million in closed on a Series A round of venture ly, he co-founded Detroit Labs LLC, a 2018, $20 million in 2019 and $100 capital of $5.5 million. portfolio company of Detroit Venture million in 2020. Previously, the company raised a Partners that does custom app devel- Last May, the company was one of seed round of $2 million. opment for corporations, and later 35 Midwest companies chosen to Autobooks is a startup that o ers co-founded Stratos Inc. of Ann Arbor. make pitches for capital at the annual bundled payment and accounting In October, Balanon was named as Michigan Growth Capital Sympo- software to small companies, which one of 50 people to know in IT in sium, which brings in hundreds of is made available to them through Michigan. would-be investors from around the their banks or credit unions. Auto- In 2012, Robert was named by country. TOM HENDERSON books licenses the technology to the Crain’s as chief information ocer of Tom Henderson: (231) 499-2817 Steve Robert, (le) CEO; Henry Balanon, chief product o
cer; and Aaron Schmid, nancial institutions, which then the year at a company with revenue Twitter: @TomHenderson2 COO, of Autobooks LLC. makes a prot by o ering it to their customers. “Banks like that because they are looking to increase their non-interest revenue,” said Autobooks CEO Steve Robert. Leading the round was Pitts- burgh-based Draper Triangle Ven- tures. Joining the round as a strategic Properly administered, a Family Trust investor was the Lansing-based Mich- igan Credit Union League, which will safeguards your most valuable asset: help Autobooks add revenue by mar- keting it to the league’s members throughout Michigan as well as to FAMILY TRUST. 3,800 credit unions nationally to which the league provides services. It’s understandable why tightly knit families rely on Greenleaf Trust to Joining the round was Detroit Ven- ture Partners, a venture-capital rm keep things in good order from one generation to the next. With family offi ce aliated with Dan Gilbert; and Baird Capital of Chicago. and personal trust divisions, a legal charter that ensures our independence Autobooks was founded by the in perpetuity, and the stability enabled by nearly $9B in assets under founders of Troy-based Billhighway, a software company that provided in- management, we capably accommodate all sides without taking them. tegrated payment processing for as- sociations and large not-for-prot or- Trust is in our name for a reason; for the good of your family, ganizations. It was bought by please allow us to earn yours. Naperville, Ill.-based BluePay in Feb- ruary 2016. “We like Autobooks because it has an experienced team with a previous high-value exit, when they sold Bill- highway to BluePay,” said Jonathan Murray, who manages Draper’s Ann Arbor oce. “e rst wave of ntech [nancial technology] companies focused on disintermediating banks from their customers, but they found that to be hard to do. e current generation is nding it productive to partner with banks, and that is what Autobooks is doing,” he said. Billhighways’ three co-founders launched Autobooks in 2015. Vince omas is still the CEO at Billhigh- way. e other two left that company to run Autobooks, Robert as CEO, and Aaron Schmid as COO. e Michigan Credit Union League invested through the CU Solutions Group, a Livonia-based subsidiary that o ers marketing and technology assistance to some 3,600 credit unions and 80 million members in 48 states. “CUSG invested in Autobooks be- cause credit unions want to help their small business members with tools that help them be successful, not just provide them with capital to grow their businesses,” said Dave Adams, the MCUL’s president and CEO. “We’re excited to see what this ven- ture will produce.” 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 Robert said the company, which has 10 employees and hopes to add 10 more within a year, hopes to move 6 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 Legislators question lack of health plan involvement in report By Jay Greene ed by Wednesday. companies, which now manage phys- ery systems. However, Dominik Pallone, exec- [email protected] Rep. Edward “Ned” Caneld, R-Se- ical Medicaid care, should have in the “I think we will get recommenda- utive director of the Michigan Asso- Some Michigan lawmakers say bewaing; Sen. Mike Shirkey, R-Clark- behavioral health system. tions from both” the department and ciation of Health Plans, said his HMO they will push back on an expected lake; and Sen. Jim Marleau, R-Lake Regardless of whether the MDH- from the Section 298 Workgroup, said members were so unhappy with the recommendation by a state agency Orion, said they believe improving the HS report contains the recommen- Caneld, chair of the MDHHS appro- Section 298 report that the associa- that would leave managed-care $2.4 billion behavioral health Medic- dations, Caneld and Marleau, who priations subcommittee. “ e recom- tion decided to publish a “minority companies out of a push to integrate aid system should also include rec- both chair subcommittees on MDH- mendations from the workgroup, from report” last month that outlines their Medicaid physical and mental health ommendations for pilot studies on an HS appropriations in the House and what I have seen, is a wish list, an ide- objections to the report and propos- care funding. integrated nancing approach with Senate, respectively, told Crain's they alized plan of what a perfect mental als for integration. e Michigan Department of managed care, as Gov. Rick Snyder believe most legislators will consider health program would look like. I “ e workgroup recommenda- Health and Human Services is put- proposed early last year. all options to improve quality, en- don’t know (the state has) the nan- tions do very little, if anything, to im- ting the nal touches on a report, Medicaid behavioral health is now hance care coordination and com- cial wherewithal for that.” prove system integration,” Pallone ordered by the state Legislature last funded through and managed by re- munication, and to reduce clinical Shirkey, who chairs the Senate said. “ ey may be helpful in im- year, that would seek to better com- gional public mental health authori- and administrative costs. health policy committee, said he also proving the behavioral health sys- bine delivery of physical and men- ties. At issue in the current debate is Legislative hearings are expected wants an integrated system to im- tem, but there is little in the propos- tal health care. e report is expect- how much of a role managed-care to begin soon on the report by what is prove clinical outcomes and deliver als designed at making changes with known as Section 298 Facilitation more services to people than the cur- the intent of improving system and Workgroup. rent system. He said he is open to service integration.” “ is is an important topic for health plans managing the Medic- Pallone said he is disappointed many legislators,” said Caneld, a aid-funded system. that the workgroup report so far does family physician “We need to not include and evaluate any health in Michigan’s look at the plan “carve-in” approaches involving umb. “Mental amount of mon- behavioral and physical health. A health is big in ey we spend and carve-in means that health plans every county, how it is man- would incorporate behavioral health and it is a priority aged on this services into their contracts. PIHPs for the speaker,” physical health also could incorporate physical Tom Leonard, and behavioral health services into their contracts. R-DeWitt. health system “So far the general feedback we Caneld said that is not inte- have received from legislators is they HELPING COMPANIES NAVIGATE THROUGH Edward Caneld: discussions he Mike Shirkey: grated,” Shirkey expected the department to come An important topic has had with Wants an said. “I want im- back with recommendations for - DIFFICULT BUSINESS SITUATIONS for many. other legislators integrated system. provement, not nancing models and policies that im- — several of just in costs but prove integration,” Pallone said. • Turnaround, Workouts & Restructuring whom, including Leonard, declined in outcomes. We spend so much “However, the boilerplate puts the re- • Performance Improvement to talk on the record with Crain's money now.” sponsibility on the workgroup to con- • Litigation Support about the upcoming mental health sider pilot programs, not the depart- • Fraud Investigations & Forensic Accounting report — have made it clear to him Controversial ment.” • Executive Coaching that many want to consider health background Pallone said he believes many plan pilot projects and other ideas as lawmakers were hoping that the de- they go about improving and reform- In February 2016, Gov. Rick Sny- partment and workgroup would ing the Medicaid behavioral and der’s proposed 2017 state budget in- bring a solution back that showed a calderonelight.com physical health nancing and deliv- cluded a provision that could have path toward improving integration. allowed the state’s health plans to But Sheehan is adamant that HMO administer $2.4 billion in Medicaid pilot proposals should not be allowed behavioral health funding, starting because the fundamental principles of Oct. 1. Currently, 10 prepaid inpa- the workgroup reform concluded that tient health plans, which are operat- the behavioral health system should ed by the public mental health sys- remain a public system. Taking care tem, manage the funding and “( at) would eliminate, from contract with mental health agencies consideration, any HMO proposal of the and providers. that would have a private HMO Mental health advocates strenu- (for-prot or non-prot) managing ously objected to HMOs taking over the Medicaid behavioral health ben- people you the entire system, and the issue has et,” Sheehan said. been contentious the past 12 months In a statement, MDHHS spokes- between the two sides and the state. woman Angela Minicuci said the de- care about. After meeting more than a dozen partment believes it has followed the times, the Section 298 Workgroup is- intent of the Legislature's revised boil- sued a 91-page draft report to the erplate by allowing the Section 298 LoVasco provides state Legislature in January. Workgroup to make its recommenda- insurance, employee Bob Sheehan, CEO of the Michigan tions in the report. e workgroup Association of Mental Health Boards, overwhelmingly is composed of advo- bene ts, retirement was happy with the outcome and cates of improving the current public products and asked the Legislature to adopt the mental health system. workgroup’s recommendations in Minicuci said the workgroup re- consulting services their entirety. He said the report rec- port to the Legislature does not in- for family-owned, ommends good ideas to improve ser- clude integrated nancing models vices to mental and behavioral health either proposed by the health plans closely held patients and will ultimately lead to or any PIHP, the 10 regional public businesses. greater coordination of services. bodies that receive and manage the “ is report is powerful because it Medicaid behavioral health funding. was developed using an inclusive “All of the nancing model catego- stakeholder-focused development ries are being summarized by the process that reects a person-cen- workgroup except for the Medicaid tered approach to health care,” Shee- health plan or prepaid inpatient han said in an email to Crain’s. “It health plan payer integration catego- 313.394.1700 | lovascogroup.com underscores, as a fundamental prin- ry,” Minicuci said. “ e majority of ciple, the core role of Michigan’s the workgroup agreed that this cate- public mental health system in man- gory of proposals did not align with A Member Firm of M Financial. Securities and aging and providing behavioral the principles of the work done by Investment Advisory Services offered through M Holdings Securities, Inc., A Registered Broker/Dealer health and intellectual/developmen- the workgroup so far.” and Investment Advisor. Member FINRA / SIPC. LoVasco tal disability services, while setting Jay Greene: (313) 446-0325, is independently owned and operated, 0224-2016. the stage for continued innovation.” Twitter: @jaybgreene CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 7

Arborland Center in Ann Arbor sold last Essen Bioscience sold to German week for $102 million to New York City-based Brixmor Property Group Inc. pharma equipment supplier for $320M

By Tyler Cliord tcli[email protected] “This powerful Ann Arbor-based Essen BioSci- technology o ers ence Inc. will be acquired by a global important pharmaceutical and laboratory equipment supplier for $320 million, synergies with our the biotechnology company said. IntelliCyt e acquisition, expected to close in the rst quarter, will allow Germa- business.” ny-based Sartorius Group to expand Joachim Kreuzburg, Sartorius its big data portfolio in bioanalytics, BRIXMOR PROPERTY GROUP INC. according to the news release. e for cell analysis in the industry.” company entered the bioanalytics Essen reached double-digit eld after it acquired IntelliCyt Corp. growth over the past few years and Ann Arbor retail center sells for $102 million of New Mexico for $90 million in expects 2017 sales to reach $60 mil- By Kirk Pinho ocer for Brixmor, said the pur- mor’s Ann Arbor portfolio to about 1 2016. lion. e company employs about [email protected] chase brings its Michigan portfolio million square feet. Essen was owned by Rye, N.Y.- 150 people with sales operations in A 404,000-square-foot Ann Arbor to 20 retail properties totaling just Horgan said the property is about based private equity rm SFW Capi- the United Kingdom and Japan. retail center has sold for $102 mil- more than 4 million square feet. He 96 percent occupied. tal Partners, which acquired a strate- Essen manufactures and sells in- lion to New York City-based Brix- said Brixmor also owns properties According to a marketing bro- gic stake in the company in 2014 struments, software, reagents and mor Property Group Inc. in Westland, Southeld, Redford chure from Farmington Hills-based from co-founders Kirk Schroeder consumables that allow researchers Arborland Center’s previous Township, Sterling Heights and Landmark Commercial Real Estate and Brad Neagle. ey founded the to remotely image and measure cel- owner was Stamford, Conn.-based elsewhere around Detroit. Services Inc., which leased the company in 1999. lular processes. real estate investment trust AmCap “Our corporate strategy is that we property to tenants, the asking rent “With the Essen real-time, live-cell “We are excited to become part of Inc. seek to cluster investments in mar- is $18 per square foot. analysis platform, we will add anoth- Sartorius as a ‘Center of Excellence’ Key tenants of the shopping cen- kets that we know well. Ann Arbor Horgan said Brixmor will handle er key technology for advancing and and build an industry-leading cell ter at 3600 Washtenaw Ave. at I-94 and Arborland t that very well,” the majority of the tenant leasing as accelerating drug discovery applica- analytics portfolio together with the are e Kroger Co., DSW Inc., Mar- Horgan said. well as property management. tions to our lab divisions’ portfolio,” IntelliCyt business,” Essen President shalls Inc., a Nordstrom Inc. Rack He said there are no immediate Farmington Hills-based Friedman Sartorius CEO Joachim Kreuzburg and CEO Brett Williams said in a store, Starbucks Corp. and Ulta Sa- large-scale capital expenditure Integrated Real Estate Solutions LLC said. “ is powerful technology of- statement. “ is is not only a great lon, Cosmetics & Fragrance Inc., ac- plans but things like parking lots had the management contract. fers important synergies with our In- opportunity to build upon Essen’s cording to a news release. Brixmor and landscaping are expected to be According to its website, Brix- telliCyt business. Going forward, Sar- market-leading position, but also to (NYSE: BRX) owns three other Ann improved. mor’s real estate portfolio has more torius will be able to provide our continue development and intro- Arbor properties, the release stated. e deal, which amounts to than 500 properties totaling more customers the broadest and, we be- duction of transformative solutions Mark Horgan, chief investment $252.48 per square foot, brings Brix- than 86 million square feet. lieve, the most innovative portfolio for life sciences.” ’Ž“Žª“£Š“¤“š‘œ¡œ¦န RI ERBTHEAANKTRE Professional, live performing arts in historic downtown Marine City We’re closer than you think...20 minutes East of I-94 & 26-Mile Road. 7KH,QQ 2Q:DWHU6WUHHW 'RZQWRZQ0DULQH&LW\ 27-Room Boutique Hotel Riverfront views Private Balconies WKHPXVLFDO Second Floor Hot Tub ¦£“ŒŠ—£ထ—Š­£ထœ˜Ž“Šš£ထ ¦£“Œ“Šš£ထŠš£œ˜¦Œ’˜œ¡Žဘ 5(6,'(1&(6 Buy tickets online at www.riverbanktheatrMay 12 - e.co21 m $W7KH,QQ or call 810-278-1749. All tickets $26.00 Four Luxury 3rd Story Condos Unparalleled Views Quaint, Downtown Living 2-Car Attached Garage 1800 Square Feet Starting at $350,000 2SHQLQJ6SULQJ Buy Now and Customize /HDUQPRUHDWZZZLQQRQZDWHUVWUHHWFRP RUFDOO 3KRWR&UHGLW-LP&RWWUHOO 8 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017

OPINION Gimmickry Store closings bring back memories of lives touched retail business is more than a bottom Aline. It’s a service and a comfort and a is not policy touchstone for its customers. A truly great business makes gut-level connections to the he Snyder administration is o ering up to people and communities it serves. $1 million to any member of the public Seldom has this resonance been more ap- who comes up with an idea for stopping the parent to metro Detroiters than with the im- Tvoracious Asian carp, which consumes the nutri- minent closing of two retail icons: e last link RON FOURNIER ents and habitats of native sh that are the center- to Hudson’s at Eastland Center in Harper Editor/Publisher piece of the $7 billion Great Lakes sport shing in- Woods and, in the west-side suburb of Garden dustry. City, the nation’s rst Kmart. Ron Fournier is editor and publisher of Crain’s We’ve got an idea: State and federal political My mother grew up a mile or so from East- Detroit Business. Catch him and Crain’s Group leaders could do their jobs. land on the same block she raised her four Publisher Mary Kramer at 6:10 a.m. Mondays Gov. Rick Snyder is conating gimmickry with children. My wife, Lori, grew up a few blocks on the Paul W. Smith show on WJR AM 760. policy. from the original Kmart, which stretches most Asian carp have been making their way north up of a block on Ford Road, just west of Middle the Mississippi River watershed and Illinois River Belt. three months before Lori was born in 1962. for more than three decades. Most e orts have is is how I found myself on two separate “It smells the same.” failed to contain or kill o the rapidly multiplying Sundays shopping with the two of the most She pointed to the store’s southwest cor- species. important women in my life. My mother and ner, where there used to be a lunch counter. Most scientists and hydro-engineers have con- my wife helped me understand how a busi- “I always wanted to eat there, but my mother cluded the only way to stop the Asian carp from in- ness can shape lives and echo through de- RON FOURNIER wouldn’t let me,” Lori said. “We couldn’t af- vading the Great cades. Pat and Mary Anne Burke of St. Clair Shores at ford it.” Asian carp Lakes is by physi- the Macy’s at Eastland Mall. She came from a middle-class family with have been cally separating A mother’s memories priorities: Rather than buy snacks, Lori’s the Illinois water- in front of an empty glass case in a store that mother made sure her two daughters left making their ways created over a “Right here,” mom said, planting her feet in will close March 19, the Hudson’s turned Mar- Kmart with the latest Nancy Drew book. “I fell way north up century ago. front of an empty glass case at a desolate Ma- shall Field’s turned Macy’s that meant so much in love with reading here,” said Lori, who the Mississippi Re-engineering cy’s in Eastland. “Right here is where I sold ties to this blue-collar neighborhood. grew up to be a bookstore manager. the Chicago-area for Hudson’s.” “is was a meeting place,” she said on a I noticed an elderly couple pawing through River waterways used for For a moment, my 74-year-old mother is 16 chilly Sunday in March. “is was a place we sweatshirts and asked them if they had mem- watershed and freight and releas- again. e year is 1958: e mall just outside worked, and shopped and fell in love. A part of ories of this Kmart. “You bet,” said Frank Pon- ing storm water the northeast corner of Detroit opened a year me is closing with the store.” gracz, 77, who lives nearby with his wife, Ju- Illinois River and treated waste- ago, and young Florence Sharp has landed the Mary Anne Burke nodded her head. e dith, 76. She nodded her head while folding a for more than water is estimated job at Hudson’s through a Junior Achievement 60-year-old St. Clair Shores resident was shop- shirt. to cost several bil- program at Denby High School in Detroit. “We ping at Macy’s with her husband, Pat, when I “ey ought to have talked to the neigh- three decades. lions of dollars — a had to wear dark skirts and white blouses.” pulled her into our conversation. Hudson’s is bors before closing,” Judith said. cost the federal Mom’s mind leaps forward ve years, when where Burke came on her wedding day to get “I don’t think they care about us anymore,” government would likely have to absorb. Eastland is still an open-air mall and she sees her hair done. It’s where she bought dresses Frank said. “ey used to.” Rather than rally his fellow Republicans in Lan- my great-grandfather sitting on a bench out- for her two daughters’ weddings. Like my “I’m kind of concerned because for people sing and Washington behind a real solution, Sny- side Hudson’s at lunch time. He comes here mom, Burke is still trying to replicate the reci- like us from Garden City, we don’t have a lot der is punting to the public. every day to chat with his brother, his neigh- pe to Hudson’s famous Maurice Salad. of stores around,” said Judith. “We’re going to It’s not like the Great Lakes states are short on bors and strangers. “He loved visiting here.” “I’m here to say goodbye to Hudson’s,” she have to drive too far.” political clout these days. Donald Trump owes his Now it’s 1968 in mom’s head: Her 5-year- said. Call it Hudson’s, Marshall Field’s or Ma- Lori frowned. “is is part of the neighbor- presidency to voters in Ohio, Pennsylvania, Wis- old son opens the door to Hudson’s for a cy’s — this place is more than bricks and mor- hood.” consin and Michigan. His vice president, Mike stranger who happens to be former G. Men- tar to Burke. “It’s part of growing up. It’s part of “We love it,” Judith replied. “It wasn’t just Pence, is the former governor of Indiana. Trump’s nen “Soapy” Williams. “at boy is going plac- my history.” the prices and products. It was the atmo- chief of sta , Reince Priebus, is from Wisconsin, as es,” Williams says, nodding at me, “because he sphere, that feeling that you were part of the is U.S. House Speaker Paul Ryan. already knows to open doors.” Mom beams. Attention Kmart shoppers community. For many people, this was the ese and other leaders need to come to grips Five years later: She’s standing in a block- place you came to shop together.” with the true cost of stopping this sh from spoil- long line outside Hudson’s to get her four We were greeted by half-empty shelves and Frank put his left hand around Judith and ing the recreational treasure and economic engine young children immunizations at the mall. a beige tile oor pocked with holes the side of steered her toward their buggy, shaking my of the largest group of freshwater lakes in the “Polio shots.” car tires. “is is the original oor,” Lori gasped hand and saying goodbye. “I hope,” he world. And now she’s back in the present, planted as we walked into her Kmart, which opened paused. “I hope we can nd another place.” He is staying the course Judging from headlines, just sessment of the current situation. Meanwhile, much of the coun- assets — two of the Big 3 automak- about every politician recently elect- e elephant in the room is the ty's business seems to be on track ers are headquartered within the ed to an oce in Michigan inherited unnished jail on Gratiot Avenue, and, most importantly, on budget. county borders, along with two a mess of some sort. an eyesore standing at one of the At a time when all government airports — and miles and miles of Wayne County Executive Warren major entryways to Detroit's down- agencies are getting increased roads, water and sewerage lines, Evans is no exception. When he took town district. ere is no easy solu- pressure to spend more money on many of them needing to be re- oce, the county was a nancial tion. Dan Gilbert, who owns the all sorts of local entitlements, it's built. mess. KEITH CRAIN Greektown Casino-Hotel behind the refreshing to see Evans' moderate There may be times when Evans He and his bright young team put Editor-in-chief jail site, has made a substantial o er approach that appears to be creat- may mumble to himself, asking their heads down and went to work to move the jail and county court- ing the unthinkable: a surplus. why he ever ran for his job. But he trying to make some sense from the house to another site. Whether that But spending pressure on gov- has put together a fine team that scal chaos and corruption that had progress the county has made since o er holds up to county analysis re- ernment agencies is staggering. has taken on the challenges. plagued the county for decades. taking oce in January 2015 is quite mains to be seen, but this dicult Infrastructure needs alone are in- He is doing a good job in a tough Last week, Evans gave his annual remarkable. Certainly the challenge decision will have to be made very timidating. Wayne County has an environment. He is staying the State of the County address. e is not over. But it's an optimistic as- shortly. impressive list of companies and course. CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 9 Michigan National innovator Stoddard’s saga o ers some lessons for today Stanford “Bud” Stoddard died that had strong philanthropic con- years of point-counterpoint in A Federal Reserve Bank white on Feb. 26 in Utah at the age of 86. nections to the community. Stoddard’s battles with the regula- paper in 2014 reported that from For years, Stoddard was synony- Stoddard’s saga also reminds us tors, was it proven that any of his 1990 until 2008, more than 2,000 mous with Michigan National that regulators can be vigorous behavior put any depositors’ mon- new banks were formed. But from Bank — the bank he helped to when they want to be. Compare ey at risk. Ditto for shareholders. 2009 until 2013, only seven new build and his father, Howard Stod- the pursuit against Stoddard by Michigan National was an inno- banks were formed nationwide. dard, founded. Then he was, in ef- federal watchdogs to what hap- vator because of the guy at the top. In Michigan? There have been fect, kicked out of his own bank, pened after the financial melt- Bad behavior in the banking in- two, both in 2009: Grand River though technically, he resigned in MARY KRAMER down that began in 2008. Some dustry was partly responsible for Bank in Grandville, southwest of 1983 when accused of misapplying Group Publisher people have never recovered fi- that mortgage-related meltdown Grand Rapids, and the Ann Arbor $700,000 in bank funds. nancially from that mess. Homes that began nearly 10 years ago. So State Bank. He spent years thereafter suing of America acquired in Michigan. lost. Big banks lied. But last I Washington created new regula- Banks that lend to business — regulators and his own bank in But the Stoddard era recalls a checked, though fines were levied, tions — Dodd-Frank — to protect especially smaller community what can be de- time when Michigan had a handful only one banker — at a lower-tier consumers. But those protections banks lending to small business — scribed as a big of strong, locally domiciled banks investment bank in New York — and layers of new complexities are essential to the economy. I bet hot mess for — banks whose lenders could ever went to jail. have also slowed the pace of new Bud Stoddard knew that. Not sure what was then make decisions on loans. Banks By contrast, never, in all the bank formations. how many people in Congress do. Michigan’s fifth-largest bank — in an era when we HAD a lot of Michi- Stanford “Bud” gan-headquar- Stoddard: Pushed tered banks. (In the envelope in Crain’s 20th an- banking. niversary issue, we listed the Stoddard v. Michigan National Corp. battle as one of the region’s 20 top business feuds.) Like his dad before him (the el- der Stoddard introduced the first drive-up window service at a Michigan bank), Bud Stoddard was a pioneer. I think my first cred- it card was issued by Michigan Na- tional back in the 1970s — a card that was a predecessor to Visa. He was an early adopter of ATMs. And Michigan National was the first major Michigan bank to open on 10% Saturdays. But he pushed the envelope. SAVINGS And was described by employees and colleagues as autocratic. Which sometimes happens, even When your business is more energy efficient, it’s in publicly traded companies, also more profitable—and DTE Energy wants to help when the CEO is so closely aligned make that happen. Take John Logiudice, owner with the institution’s very DNA. One of the regulators’ accusa- of Florentine Pizzeria, for example. DTE worked tions, as I recall, was that he used with him to make some small changes that led bank funds to share the cost of family members’ weddings. But to big savings. Simply installing a programmable Stoddard argued they were justi- thermostat, sink aerators, LED lights and a pre- fied because, after all, the guests were also clients and customers. rinse spray valve in the kitchen saved John around Another issue was putting a bank 10% a month on his energy bill. branch in a building in which he had a partial ownership interest. If you’d like to manage energy use to save money As former Michigan banking com- missioner Patrick McQueen put it: at your business, visit dteenergy.com/savenow. “He did not understand the con- cept of ‘conflict of interest.’” Stoddard successfully appealed an initial conviction on wrongdo- ing. His battles went on for years, culminating in the late 1990s when he waged his last major battle against regulators who thwarted his attempt to start another bank. In 1996, Crain’s offered this opin- ion on its editorial page: That the Federal Deposit Insurance Corp seemed vindictive in its refusal to extend deposit insurance to Stod- dard when he was trying to form that new bank — a bank that had the regulatory blessing of Michi- gan’s banking commissioner. So why bring it up now? Michi- gan National is a memory. Through mergers and acquisitions, it is somewhere within the banks Bank 10 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 CRAIN’S MICHIGAN BUSINESS: ST. CLAIR COUNTY

The Community Foundation of St. Clair County transformed a former strip mall plaza into a community gathering spot. COMMUNITY FOUNDATION OF ST. CLAIR

By Tom Henderson “Randy was very helpful, and that meeting [email protected] “The helped convince us to expand here,” said Paul. A partner e Port Huron-based Community Founda- recession Maiers said the Great Recession was the im- tion of St. Clair County has taken a proactive ap- forced us to petus for the foundation’s increased focus on proach to community development, providing actively promoting community development. zero- or low-interest loans to both for-prot and start “We realized our region needed to be more and ally nonprot development projects and serving as thinking and strategic,” said. “ e recession forced us to an intermediary between entrepreneurs, would- start thinking and stop relying on Lansing and Michigan’s fastest-growing be investors and city and township ocials. stop relying Washington to come in and save us.” community foundation Now it’s creating a $1 million pool of money on Lansing e Riverview Plaza development was one to co-invest along with angel investors in and Washington to example of the foundation’s willingness to own invests in St. Clair’s promising startups in the area. “We’re just land as part of its mission. Another? Buying an starting to get the word out on the fund,” said come in and save us.” abandoned bank branch in the heart of down- development Randy Maiers, the foundation’s president and Randy Maiers, president and CEO, town Port Huron that had once belonged to the CEO since 2002. He said the fund will provide Community Foundation of St. Clair failed Citizens Bank. Today it’s the founda- seed-stage capital of between $50,000 and tion’s headquarters. $100,000, with further participation possible as of St. Clair, when he spent $750,000 to turn a “We moved in a year ago,” said Maiers. “Our More coverage inside: companies grow. parking lot and expanse of drab, crumbling board made a statement: Let’s buy a vacant n War Water Brewery plans $5 million, Maiers said the foundation’s active involve- concrete into a community gathering spot in building and rehab it. Now, we love where 10,000-barrel expansion, Page 11 ment in development is responsible for bring- front of the Riverview Plaza overlooking the St. we’re at. We believe in owning property if it ing in new donations and helping build its en- Clair River. promotes economic development.” n Investment rm feels right at home in St. dowment. e plaza owners donated the area to the e foundation also owns an art studio in Clair County, Page 13 In 2016, the Johnson Center for Philanthro- foundation, which now owns it. e redevel- Port Huron called Studio 1219 that it opened in n St. Clair County bridges talent gap by forging py at Grand Valley State University put the oped plaza has two re pits, benches overlook- 2005; it’s now the region’s largest public art connections with students, Page 14 foundation’s growth for the ve years ending in ing the water, grass in place of concrete and a center and gallery. And in 2011, the communi- n Business picks up for towing industry 2015 at 76 percent, the highest growth rate for skating rink in the winter. e plaza has hosted ty foundation used waterfront property donat- so€ware service, Page 16 any community foundation with at least $20 weddings, concerts and a beer-and-wine festi- ed by philanthropist James C. Acheson and his million in assets in Michigan. val, and has helped spark economic develop- wife Suzanne to create the Blue Water River Since Maiers joined the foundation, its en- ment in the area. Walk at the conuence of the St. Clair River dowment has grown from $17 million to $65 One example? A new craft brewer, War Wa- and Black River. million, a direct response to the nonprot’s ter Brewery Inc., which became a tenant in the Maiers’ oce window looks out across Mili- economic development activities. “Over the plaza after one of its co-founders, Kris Paul, tary Street to a new condo and retail develop- last four years, our total gifts received have heard about the foundation’s development ment on the Black River called the Black River ranged from a low of $4.3 million to a high of plans there and called Maiers for details. Paul Harbor Place that was developed by the Witt $7.9 million. Our community has accepted the had been considering expanding his family’s family, prominent area developers. Maiers community foundation as a partner and ally in Indiana-based brewery operations to St. Clair. said the foundation provided a loan of $50,000 the regional eort to grow prosperity and eco- (See related story, page 11). to help nance the project. “It was contingent nomic well-being,” he said. Maiers subsequently arranged a meeting on them making the back of the project open to Maiers is particularly proud of a project the between Paul, bankers, would-be investors public access, so boaters and kayakers on the foundation funded in 2014 with the coopera- and city ocials about the prospective new river could tie up,” he said. tion of the Downtown Development Authority brewery in town. SEE GROWING, PAGE 12 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 11

SPECIAL REPORT: ST. CLAIR COUNTY St. Clair’s War Water Brewery plans $5M, 10,000-barrel expansion Tom Henderson cording to Kris Paul, plans include Riverview Plaza the brewery now oc- [email protected] tearing out the rst-oor ceiling in cupies. War Water Brewery Inc., one of the middle of that central portion, e city of St. Clair, just 3.6 square Michigan’s newest craft breweries, is allowing for 22-foot ceilings for the miles, had a population of 5,485 in about to get much larger, thanks to a brewery/pub and restaurant portion 2010. $5 million expansion plan that in- of the development. War Water is an outgrowth of a cludes condos overlooking the St. On the second oor, on either side pub called the Brockway Public Clair River, a restaurant, retail shops of the open space, there will be a to- House that the brothers and Kevin’s — and a lot more beer. tal of six condos facing the river. Re- wife, Lainie, opened in 2005 in Car- e brewery was incorporated in tail plans for the rst oor include a mel, Ind. Kevin and his wife owned a December 2014 and started making deli and what Kris Paul describes as software company there called Blue and selling beer in July 2015 in 1,000 “a gloried farmers’ market.” Horseshoe Solutions. square feet in Riverview Plaza, a strip Architectural plans should be n- Kris Paul was a metal-processing center in the ished by April 1, with the brewery engineer with RCO Engineering Inc. heart of the hitting its expanded capacity of in Roseville. He quit in 2014 to work small city of St. 10,000 barrels a year by the fourth full time as a brewer. Clair. Plans are KRIS PAUL quarter. “Kevin and I were the dreamers. to boost annual Five War Water brands are distributed throughout Michigan and Indiana. Kris Paul said he estimates the Lainie kept us grounded and fo- production from brewery expansion will cost about cused and helped us create what to- 500 barrels a convert a parking lot and ugly con- about why we should bring a brew- $2.5 million, the condo build-out day is a very successful Irish pub,” year to 10,000. crete walkway in front of Riverview ery into St. Clair. It was clear that ev- about $1.5 million and the develop- Paul said. War Water Plaza into a community courtyard eryone in the meeting had done ment of 10,000-12,000 square feet of Lainie died of breast cancer two co-founder Kris that would eventually include out- their homework. ere were some retail space about $500,000. years ago. Kris Paul: Expand- Paul credits the door repits, a lawn, benches for early tweaks of community resis- Paul, who is now 43, spent a few of In 2014, the Pauls got into the craft ed operations in Port Hu- watching freighters go by and an ice tance to a brewery, but generally his childhood years in St. Clair. brewery business when they opened his old home town. ron-based Com- rink in the winter, and would be used people were very receptive,” said “My brother and I were two Irish the Danny Boy Beer Works in the vil- munity Founda- for weddings, beer and wine festivals Paul. boys who were pulled out of Cork- lage of West Clay, an auent suburb tion of St. Clair County for a crucial and concerts. And customers were receptive, town in Detroit kicking and scream- of Carmel. e 6,000-square-foot fa- introduction to city ocials, local Paul heard about that renovation too — so much so that Paul and his ing in the late 1970s,” he said, refer- cility was quickly brewing at full ca- bankers and would-be investors in and called Randy Maiers, the foun- brother and partner, Kevin, have ring to Kevin, who is 48. pacity. 2014, when he was looking to expand dation’s president and CEO, to talk purchased the 50,000-square-foot e family moved when the Even before it was up and run- his family’s brewing business in Indi- about his tentative plans for a brew- central portion of the plaza for brothers’ parents opened a hair sa- ning, Kris was trying to convince ana to his old home town. ery and tap room in St. Clair. $500,000 in a deal that closed March lon in St. Clair called Dennis and Su- Kevin to expand operations into At the time, the community foun- At the subsequent meeting that 1. e central portion, unlike the rest san’s. Coincidentally, the salon was their old hometown. dation was spending $750,000 to Maiers helped convene, “We talked of the plaza, is two stories high. Ac- in the very same 1,000 square feet in SEE BREWERY, PAGE 12 12 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017

“Michigan’s Finest Tourist Value” still ONLY 10¢ SPECIAL REPORT: ST. CLAIR COUNTY BREWERY A unique tour recapturing FROM PAGE 11 the past of public transit “It took me a year to convince my and the Blue Water Area. brother why he should invest in St. Clair,” Kris said. 810-987-7373 Maiers praised the Pauls for see- ing other businesses in Riverview Plaza as partners and not competi- tors. For example, there is a Hungry The Blue Water Howie’s pizza a few storefronts away. Customers in the brewery can get on Transit a tablet, order a pizza and have it de- Bus Center livered a few minutes later to their 720 McMorran Blvd. table. War Water currently o ers a limit- COMMUNITY FOUNDATION OF ST. CLAIR ed appetizer menu, including large The Blue Water River Walk runs for a mile along the St. Clair River waterfront. soft pretzels, nachos and chili con t queso. In warmer weather, custom- a 29,000-square-foot, $4.2 million visi ers are welcome to bring in food GROWING project with 26 hotel rooms and four from food trucks parked nearby. FROM PAGE 10 condominiums on the third and top Convenience Store e Pauls are the Class A share- “We have a focus on development oor. & Cafe holders in War Water. e meeting that draws people downtown. We like e Inn at Water Street is an exam- that Maiers organized helped gener- projects that bring people downtown ple, said Maiers, of local municipali- ate what Kris described as a “fair at nights and on weekends. We’re not ties and government authorities tak- amount of Class B shareholders” going to nance a new oce for an ing a more regional approach. and lending support from traditional insurance company, for example,” he “Marine City was not in competition bankers. said. with Port Huron,” he said. Maiers said his foundation is in- Another investment was a $90,000 e project received a $642,000 terested in investing in the expan- loan last year to help Casey’s Pizza Community Revitalization grant from sion and renovation if more funding and Subs expand its kitchen. “Two re- the Michigan Economic Develop- is needed. tired school teachers own it. It’s on the ment Corp., $3,500 from the St. Clair e brothers don’t have formal ti- south side of town, and it’s one of the County Browneld Redevelopment tles. Kevin handles brewing, tap- hottest restaurants in Port Huron,” he Authority and a $167,000 loan and room operations and distribution in said. $249,000 grant from the Michigan De- Indiana. Kris runs brewing and dis- e foundation’s most recent in- partment of Environmental Quality. tribution in Michigan. vestment is $50,000 in the Inn at Wa- Proof that such cooperation works? Kris’ wife, Andrea, a kindergarten ter Street, a boutique hotel that broke “e last seven or eight years, this re- teacher in Port Huron who is nish- ground in Marine City in October. It is gion has blossomed,” he said. Steven Disser David Thomas ing work for a master brewer certi- Vice President/Investments Vice President/Investments cate, helps handle the nancials. e War Water name grew out of reading Kris Paul did on the area’s () -  history. He came across an article on the Internet about 60 years of war- ()  - fare on the Great Lakes from 1754 to 1814, involving native Americans, colonists, the British and the French.  Military Street, Suite  “I thought, ‘Why not War Water?’” Port Huron, Michigan  said Kris Paul. War Water brewed 100 barrels of Stifel, Nicolaus & Company, Incorporated beer the second half of 2015 and got Member SIPC & NYSE | www.stifel.com to 500-barrel capacity last year. Five brands are distributed throughout Michigan and Indiana — Training Day, an American pale ale; Rock-n- Rolla, an imperial pale ale; Mac Daddy, a strong Scottish Ale; Miss Ginger Witte, a wheat beer; and Black IPA. All ve come in cans and kegs. Gerry’s Distributing Co. distrib- utes War Water beer to retailers in St. Clair County. Imperial Beverage Co. distributes to retailers in the rest of Invest in the St. Clair County Region the state. and you'll have the best of both Six large atscreen TVs perch high on the wall above the bar that runs worlds. You are close to the big city, along one side of the front room of but you benefit from the lower costs the brewery. Beneath them, on of a fringe suburban community. chalkboards, are the names and de- scriptions of other tap beers avail- Vacant Land able only on-site, including Hand of Industrial Park Sites God, Swing Oil and Danny Brau. Commercial Real Estate War Water employs 16 part- and full-time employees now, and Kris Waterfront Development expects to employ about 50 by the Incentives & Opportunity time all the renovation and expan- sion is nished. “Five years ago, I never thought we could have done this here. It’s St. Clair County's Leader very exciting, an honor and a privi- in Economic Development lege,” said Paul. Tom Henderson: 231-499-2817 www.edascc.com Twitter: TomHenderson2 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 13

SPECIAL REPORT: ST. CLAIR COUNTY Investment rm Otsi Keta Capital feels right at home in St. Clair By Tom Henderson “ e rules governing our busi- ment banking rm of Swander, Pace [email protected] ness were crystal clear for Illinois in and Co., focusing on mergers and Who needs to be based in Chica- 2010 and more gray in Michigan,” acquisitions. go when you can call St. Clair, Mich., said Schwarz. ough they both worked in San home? But after Michigan streamlined Francisco, they didn’t meet until at’s the philosophy of Otsi Keta rules governing investment rms, they had moved back to the Mid- Capital LLC, a boutique investment managing partner Fred Rollins and west and were introduced by a mu- rm in St. Clair that relocated from Schwarz moved their company to tual friend. Chicago to St. Clair in 2011. Port Huron, setting up shop in an of- e recession was in full swing, Despite Chicago’s reputation as ce above a vacant storefront. and they thought it was a good time the nancial center of the Midwest, ey stayed in Port Huron for two to carry out the adage “buy low, sell TOM HENDERSON the rm nds natural advantages to and a half years, then rented oce high.” Fred Rollins and Bill Schwarz, managing partners of Otsi Keta Capital LLC, have doing business in St. Clair. It’s easier space in a stately old house on South “We wanted to invest in small found advantages to doing business in St. Clair. to nd companies where traditional ird Street in downtown St. Clair, companies because they had been Wall Street investment rms aren’t two blocks from the St. Clair River. the most hammered,” said Rollins. ins and Schwarz say it is easier to west are overlooked. ere are great looking. And it gives them the op- When the house came on the market Rollins and Schwarz are more scout undervalued companies here opportunities out there,” said Rollins. portunity to invest in smaller com- in 2015, they bought it. Today, their than general partners in their rm; because there is limited coverage by One of their early investors was panies that share their values. two-person operation occupies the they are investors, too. eir fami- traditional Wall Street analysts, and Paul Mitchell, who in January joined “St. Clair was always in the ulti- top oor. ey rent the rest of it out. lies have invested about 30 percent they like the traditional Midwest val- the U.S. House of Representatives as mate plan for our home base. I Schwarz, 48, grew up in St. Clair. of the $19 million currently in their ues often ingrained in management. a Republican congressman from the choose to live here with my family He was still a student at Michigan Otsi Keta Focus Fund LP, a narrow- “ e Midwestern footprint has 10th district. because of the way of life in St. Clair, State University when he bought a ly-focused fund that targets small- quite a few of these businesses. Why He was one of the early investors the school system, and the proximi- seat on the Winnipeg Commodity cap publicly traded companies look further than your backyard?” in Otsi Keta in 2011. Mitchell, who ty to one of the best bodies of water Exchange and began his trading ca- based in the Midwest, generally said Schwarz. “Our Midwest focus had recently got a cash windfall, in North America. A wonderful reer. Later he was a trader at De- with an enterprise value of less than aligns our investment strategy with liked Otsi Keta’s Midwest focus. place to raise a family,” said troit-based Olde Discount Corp. and $2 billion. our beliefs — hard work, self-reli- e windfall came from the sale co-founder and managing partner then with W.R. Hambrecht and Co. “We stand shoulder to shoulder ance and time can equate to suc- in 2010 of St. Clair-based Ross Edu- Bill Schwarz. LLC in San Francisco. with our investors,” said Rollins. cess. If you are willing to stay within cation LLC by Detroit-based Huron After starting their business in Rollins, 46, who grew up in near- e fund has about 30 limited your investable parameters and not Capital Partners LLC. Mitchell was a Chicago in 2010, a shift in policy by Algonac, was a management partners, including high-net-worth grow for growth’s sake, you can have co-owner of Ross, a health care edu- helped spur their move back to consultant before becoming a prin- individuals and family oces. outsized returns.” cation company. Michigan. cipal at the San Francisco invest- Why focus on the Midwest? Roll- “We think companies in the Mid- SEE OTSI KETA, PAGE 17

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SPECIAL REPORT: ST. CLAIR COUNTY St. Clair County bridges talent gap by forging connections with students By Allison Torres Burtka well as computer programming, Special to Crain’s Detroit Business Casey said. Demand is also high for Businesses in St. Clair County workers in the construction trades, are struggling to ll their open posi- such as bricklayers, carpenters, tions. Because the county’s econo- pipe tters, and electricians. my is based on manufacturing, re- “We focus on trying to connect cruiting for manufacturing young people to careers,” Casey positions represents the biggest said. RESA, EDA, and other educa- need, said Dan Casey, CEO of the tional partners have developed a St. Clair County Economic Devel- countywide career and college opment Alliance (EDA). “Across the readiness system that is being im- state of Michigan, there’s a huge plemented in the county’s seven talent gap. It’s partially due to peo- school districts. e program is ple retiring from the industry, and supported by career counselors it’s also due to fact that a lot of who connect students with job pro- young people just don’t seem to viders. have a great interest in working in e talent gap seems to have manufacturing.” worsened in recent years. “I think To address this problem, several it’s harder for employers to match local organizations and companies up skills they need with the talent have found ways to engage high available,” said John Bierbusse, ex- school and college students. ecutive director of the Macomb/St. Among them: summer talent Clair Workforce Development camps that EDA and the St. Clair Board, which provides training that County Regional Educational Ser- will “upscale individuals who are vice Agency (RESA, the county’s in- not quite prepared for the labor termediate school district) run for market.” students who have just graduated. Apprenticeship programs have rough the camps, which are ST. CLAIR COUNTY COMMUNITY COLLEGE withered in the last 30 or 40 years, focused primarily on manufactur- Students receive hands-on training in the manufacturing trades at St. Clair County Community College. Local employers are tracking the decline in organized ing, graduates work full time for trying new ways to bridge the skills gap and ll jobs. labor, Bierbusse said. To help ll seven weeks, followed by a two- the gap, the development board is week internship with area compa- nies’ needs — the EDA surveys past two years, the greatest need e county’s most-needed skill working closely with community nies, concluding with a job fair. e manufacturers to identify their hir- has been computer numerical con- sets also include engineering, colleges and training providers. camps are tailored to the compa- ing needs in certain areas. For the trol (CNC) machining, Casey said. welding, and quality control, as SEE SKILLS, PAGE 15 BREATHTAKING VIEW... Port Huron, Michigan

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SPECIAL REPORT: ST. CLAIR COUNTY and CEO of the company, which pro- people,” she said, adding that a com- “The reverse scholarship is a SKILLS duces metal stampings. pany’s involvement in the community FROM PAGE 14 e program lets students see if gures into that. “Potential candi- huge incentive. For people they want to pursue a career in man- dates want to see that you’re not only who want to move back, it’s Employers welcome ufacturing. “It’s an avenue for them building your company but also help- students to try,” she said. It gives them “a leg ing your community” through sup- an extra push.” up on most people who don’t know porting charities and sponsoring Chelsea Beeler-Khabbaz, Some employers are connecting anything about manufacturing.” Af- community events, for example. a medical laboratory scientist at McLaren Port Huron with high school and college stu- ter their two years, students walk dents directly. A Port Huron compa- away with skills such as blueprint Come for the education, ny that makes clutch return spring reading and some engineering, and stay for the jobs Kenny said. e culinary institute school, the majority of people want- packs, P.J. Wallbank Springs Inc., has then they can pursue a more special- has also established a feeder pro- ed to get out,” she recalled, but “Port partnered with colleges to develop a ized area at the community college, Baker College in Port Huron re- gram with the local intermediate Huron has more to o er now.” rotational program that allows stu- she said. quires its students to get hands-on school district. “e reverse scholarship is a huge dents to learn how the company op- “We’re teaching them a trade, and experience. “Students work part time incentive,” Beeler-Khabbaz said, and erates — and apply what they’re in four to six years, they will have and volunteer in the community, A new approach it helped her pay down her student learning in school. “We accommo- marketable skills, they will be able to building ties that can keep them in debt. “For people who want to move date a student’s schedule,” said Mary provide for a family, and they will be the area after graduation,” said Dan Attracting and retaining talent is “a back, it’s an extra push.” Gilbert, the company’s human re- able to be productive citizens,” Rus- Kenny, the college’s director of ad- huge Midwest problem,” said Randy Muray Darling is another award- sources manager. sell-Kuhr said. missions. “Strong advisory boards for Maiers, president and CEO of the ee. A veterinarian in Fort Gratiot who Students work either part time Russell-Kuhr lauded the collabo- Baker College programs also help Community Foundation of St. Clair moved back from North Carolina, while taking classes or full time ration among the community col- students connect locally and can in- County. “e brightest and best are she missed the area’s sense of com- during school breaks in a program lege, RESA, and the EDA, which has crease the likelihood that they will moving away and not coming home.” munity. She and Beeler-Khabbaz that’s similar to an apprenticeship allowed the private and public sec- choose to stay in the county.” In 2016, the Community Founda- agree that more of their peers seem program. “Students rotate among the tors to “put our words and ideas into e Culinary Institute of Michi- tion launched a “reverse scholar- to be interested in moving back. company’s di erent groups to learn action and see things getting done,” gan, part of Baker College, has suc- ship” program that gives recent col- “ere already are young, educat- the whole operation, and the trainers she said. In St. Clair County, “we ceeded in attracting students from lege graduates a nancial incentive ed professionals moving back home,” share their knowledge with new peo- have a ‘we’re going to make things throughout the state as well as from to move back to the county. It’s the Maiers said, and the applications ple,” Gilbert said. happen’ attitude.” other states, and many of its students rst program of its kind in the United show that “many more are on the PTM Corporation in Fair Haven To retain good employees, it’s im- are nding jobs in the area after grad- States. Last summer, the program fence and are burdened by student has teamed up with RESA to bring in portant for companies to provide uation, including in Port Huron’s awarded four reverse scholarships of debt.” high school juniors and seniors for a jobs that allow for a good quality of burgeoning restaurant scene. One of $10,000 each, and it plans to expand “We have a great place to live, and two-year program that teaches them life, Russell-Kuhr said, noting that the e orts that has appealed to stu- its nancial o erings. we have water resources that most manufacturing and some skilled her last few hires came to the compa- dents is housing tailored to culinary Chelsea Beeler-Khabbaz, a medi- communities would die for,” Casey trades. It’s not a formalized program, ny for that reason. students’ needs. “Providing quality cal laboratory scientist at McLaren said. “It’s just a matter of making but it gives high school students skills Gilbert agreed. “You need the right student housing adjacent to the CIM Port Huron, grew up in Port Huron people aware,” which the EDA is and helps make them employable, environment, development opportu- beginning in 2015 has attracted stu- and wanted to move back after work- tackling through a branding cam- said Donna Russell-Kuhr, president nities, benets, and exibility to keep dents from areas outside the county,” ing elsewhere in Michigan. “In high paign and other initiatives. ...UNPARALLELED SERVICE. For a great meeting...just add water!

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SPECIAL REPORT: ST. CLAIR COUNTY Business picks up for towing industry so
ware service

Tom Henderson [email protected] Business is booming for Towbook LLC, a St. Clair-based provider of cloud-based software services for the towing industry. Revenue will approach $3 million this year, according to partner Tom Ba- con, and the company just added 1,700 square feet of space to the 3,300 it had in Riverview Plaza in downtown St. Clair. Towbook was founded in 2007 as a sideline business for Dan Smith, 31, TOM HENDERSON who was the chief technology o cer Dan Smith, (le) CEO, and Tom Bacon, partner, of Towbook LLC in St. Clair. from 2002-2012 for Detroit-based fu- neralOne, a technology and consult- ner in the company. “I helped cover Soon, they decided to make Towbook ing company that designs web sites some expenses for the business as we a full-time aair. for funeral homes and creates tribute got going, and we both did the tradi- “We made the decision ... to build a videos for grieving families. tional ‘live without a salary’ for several company in St. Clair and invest in our Smith, a native of St. Clair, has been years,” he said. community,” said Bacon. “We wanted a full-time software developer since he Bacon, who has a computer science to do our part to bring these kinds of was 16. He developed a zeal for coding degree from Central Michigan Univer- high-paying jobs to our community.” when he was given a book on how to sity, worked in logistics for Ford Motor e company has 18 employees code in QBasic when he was 10. Co. for 10 years, then ran the Detroit and is looking to hire three to ve Smith got the idea for Towbook area o ce of Silicon Valley-based more. when he worked on a freelance project WhereNet Corp., a company that used Towbook now claims more than for the Marysville Police Department radio-frequency identication (RFID) 1,000 customers throughout the U.S. in 2004, creating software to help po- to help companies track their assets. and in Australia, Canada and Malay- lice keep track of towed vehicles. “at exposed me to the startup sia, with its app available for iPhones ree years later, he decided to cre- world,” said Bacon. and Android devices. It has plans to ate a cloud-based software for munic- And to the potential prots: expand into eet-management ser- ipalities and the towing industry, a WhereNet was acquired in 2007 by Ze- vices for companies with service sideline project that turned into a full- bra Technologies Corp. for $126 mil- trucks in the eld. time venture in 2012. lion. Smith said there are several com- at’s when he was joined by Ba- Bacon stayed there another two petitors in the towing eld, including con, 51, who helped capitalize Tow- and a half years, then went to work for Beacon Software of Cleveland, but book’s expansion and became a part- funeralOne, where he met Smith. SEE TOWBOOK,PAGE 17

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SPECIAL REPORT: ST. CLAIR COUNTY

to talk to someone, they’ll always funds, Rollins and Schwarz don’t OTSI KETA take your call,” he said. have to distribute proceeds to limited FROM PAGE 13 Rollins and Schwarz typically hold partners following the sale of portfo- In 2005, Huron bought a majority positions for two to three years. ey lio companies. Instead, they invest stake in Ross. Five years later, Huron currently have 17 portfolio companies. the money back into the fund, which made what was then the best exit in According to Rollins, the fund has they hope to eventually build to $100 the private equity rm’s history, selling had a return of more than 100 per- million. the business to a New York private-eq- cent in six years, after fees and ex- Its current largest portfolio com- uity company for $232 million, a re- penses, living up to the rm’s name, pany is Wabash National Corp. turn on investment of almost 19 times. which is Iroquois for “good hunting.” (NYSE: WNC), a maker of truck and Huron was honored as having the at return has been fueled by trailer products. deal of the year by Crain’s at its annu- some recent pro table exits. Rollins said Otsi Keta is the antith- al M&A awards in 2011. In November, Chicago-based Intel- esis of the activist hedge funds that Mitchell divested most of his stock iquent Inc. (Nasdaq: IQNT), a telecom garner headlines by lobbying for &200,77('72.((3,1*285 in the company at the time Huron network provider, was bought for more board representation or sold its stake and remained chair- nearly $800 million by Chicago-based launching hostile takeovers. &20081,7,(69,%5$17 *52:,1* man of Ross for another year. GTCR LLC, a private-equity company. “We’re not activists. If we disagree “I thought Otsi Keta’s structure “at was a three-year investment with management, we walk with our ,QGXVWULHV1RUWKVWDU%DQNUHFHQWO\VXSSRUWHGLQRXUPDUNHWV and focus made a good deal of sense. that did very well for us,” said Rollins. feet,” said Rollins. ey’ve done better than the market Another good exit involved stock in He said the rm is largely industry н‘Š‘½€Èb+‡€b² noObº*b½8€‡ ‘Š‡bÊ as a whole, signi cantly better than I Patrick Industries of Elkhart, Ind. Roll- agnostic, but avoids software, bio-   5HDO(VWDWH(TXLSPHQW would have thought,” said Mitchell, ins said Otsi Keta bought shares in the tech and turnarounds. “We want to &RQVWUXFWLRQWR3HUPDQHQW)LQDQFLQJ who said he has continued to invest company from January to May 2014, at invest in businesses we understand. :RUNLQJ&DSLWDO)LQDQFLQJ in Otsi Keta following his initial in- prices ranging from $22.63 a share to We avoid companies where we don’t vestment. $27.77. ey sold the stock in January have an insight. A company might +b‡n+½‘²8ub b²8½‘² (²‘b²½Ë*bµ½‘²8½€‘ “I appreciate how accessible Bill and February at prices ranging from have a molecule that kills cancer, but   and Fred are. When you see the $80.31 a share to $81.01. that’s not something we understand,” $FTXLVLWLRQ 5HILQDQFH3DFNDJH :RUNLQJ&DSLWDO5HYROYHU market going wacky, and you need Unlike traditional private equity said Rollins. -½€‡€½Ë‘O8½€uº+b²È€Obµ ‘½²8O½‘² to tow vehicles that don’t belong in competition to start using them so I  $FTXLVLWLRQ(TXLSPHQW TOWBOOK their parking lots. e company was wouldn’t be swamped.” :RUNLQJ&DSLWDO)LQDQFLQJ FROM PAGE 16 one of Towbook’s rst customers. Denson said his business has in- his customers are happy to sing Denson said he was frustrated creased with Towbook, but he has &RQWDFW\RXUORFDOFRPPHUFLDOOHQGHUWRGD\ Towbook’s praises. with what was then a labor-intensive also cut overhead dramatically. Be- +,6+$0$/*+$5$%$//< -67(3+(1$5067521*%5,$1025$1 “Towbook continues to be innova- paper system. A Google search for fore moving to an automated system,       tive and pushes the envelope for this automated solutions led him to the he had nine trucks and 18 drivers; 10/6 10/6 industry,” said Ty Lambert, U.S. sales edgling Towbook. now, he handles a much bigger tow manager for TomTom Telematics in “I called numerous software com- load with nearly half the cost of labor Vancouver, Wash. panies, and Towbook was the only and equipment. TomTom is a preferred partner of one willing to speak to me and devel- “It’s been a tremendous savings,” Towbook, whose software coordi- op what I needed,” he said. said Denson. nates towing and billing for tow- e practice then was for drivers Tom Henderson: (231) 499-2817 truck companies equipped with to tow vehicles to an impound lot, ll Twitter: @TomHenderson2 0HPEHU)',& /RDQVVXEMHFWWRFUHGLWDSSURYDO (TXDO+RXVLQJ/HQGHU TomTom GPS systems. at towing is out paper forms documenting what often coordinated in collaboration was towed and to where, then deliver with insurance companies. the forms back to the managers of For example, Lambert said, when the complexes the cars had been State Farm customers call the toll-free towed from. number for road-side assistance, they Now, everything is done by drivers are actually routed to a company un- in their trucks and documentation is der contract with State Farm that in transmitted by email. turn noti es Towbook of the need for a “I have been very happy with Tow- tow truck. Towbook’s software then book. ey’ve helped me grow my nds the nearest available driver. business so much,” said Denson, Mark Denson is CEO of On Site who says his competitors are now us- Towing in Houston, which contracts ing Towbook, too. “We were picking with apartment and oce complexes up so much business, I needed the 18 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 SPECIAL REPORT: SECOND STAGE SPECIAL REPORT: SECOND STAGE Looking Tips to keep in mind when hiring an outside executive

By Rachelle Damico outside Special to Crain’s Detroit Business Richard Segal, principal at West Bloom eld-based Segal Consulting Inc., said the rules are di erent when it comes to hiring an outside executive to join a family business. “ at outside member needs to know exactly what they are getting into — they are joining a family business,” Segal said. “It’s a busi- ness cultural issue.” Here are some things to keep in mind when hiring someone out- side of the family for a key role:

1. Learn to let go.

Many family business owners will spend a lot of time nding, hir- ing and training an outside manag- er, but then fail to step back and al- low the new manager to lead the company. David Wujciak, owner and CEO of Flint-based Quali ed Temporary Services Inc., said although letting go is hard for business owners, it’s necessary. “Take your hands o the wheel and let somebody else go with it — you get new ideas and a fresh ap- proach,” he said. “A lot of business- es hit a certain level and don’t grow Why family owned companies Megan Ackroyd (le ) and Erin Koch, production after that, and I suspect failure to let manager, with a variety of savory pies and pastries at go is part of that. Let those fresh should look beyond kin for key roles Ackroyd’s Scottish Bakery in Redford Township. A ideas  ow.” By Rachelle Damico third generation family business, Ackroyd’s looked Special to Crain’s Detroit Business outside to hire a manager. 2. Make sure they
t For many traditional family businesses, the leading within the family generation looks to the upcoming one to ll key roles. company’s culture. However, there are situations where hiring a family member isn’t possible.  e next generation may be too It’s key that an outside executive young, or other relatives may not be interested or have the can t in well with the family busi- right skill set. ness’ culture. “ ere probably aren’t enough family members to do all “ ey have to be able to interact of the things that have to be done,” said Richard Segal, well with the family members,” Se- principal at West Bloom eld-based Segal Consulting Inc. gal said. “If you’re bringing some- “At some point, you probably have to expand.” Family business owners looking to continue or grow the company should consider hiring managers outside of the family. Rejeana Heinrich, associate director at the Stevens Cen- ter for Family Business at Saginaw Valley State University, said non-family members in key roles typically do better Let’s Grow than family members because they have the emotional distance that is necessary to be more objective. “It’s hard to hire a family member for a big role,” Hein- Together rich said. “Families get torn apart over it.” SEE FAMILY , PAGE 19 Eastern Michigan Bank has the products and services to help your business grow, backed by experienced, knowledgeable professionals who are ready to work with you. In St. Clair And when you choose Eastern Michigan Bank, County call: the revenues produced by your relationship Fort Gratiot 810.966.2281 stay local, helping to grow our communities and the local economy. Lakeport 810.385.3211 Marysville 810.364.4854 Port Huron 810.987.9777 PHOTO BY LARRY PEPLIN

800.397.2504 | easternmichiganbank.com CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 19

SPECIAL REPORT: SECOND STAGE

“I think a lot of time workers and about 10,000 FAMILY temporary workers who receive Tips to keep in mind when FROM PAGE 18 entrepreneurs are W-2s. too caught up Wujciak owns the company with Carolyn Riegler, a director of his wife, Diane Wujciak. His broth- hiring an outside executive Bloom eld Hills-based consulting thinking they’re er, Michael Wujciak, joined the rm O’Keefe & Associates Consult- the only one that company about three years ago to By Rachelle Damico one in to do a job, can they do the ing LLC, said bringing in an outside can run the assume general manager responsi- Special to Crain’s Detroit Business job and can they get along?" executive can help bring creativity bilities for two IT companies Quali- Richard Segal, principal at West Jamie Michelson, president and and out-of-the-box thinking to an business.” ed Stang acquired. Bloom eld-based Segal Consulting CEO of Troy-based Simons-Mi- entrenched family business. David Wujciak, Qualied Sta ng Wujciak no longer runs the com- Inc., said the rules are dierent chelson-Zieve Inc., said tting into “e ability for somebody to come pany’s operations; he resigned as when it comes to hiring an outside the company’s culture is a factor in in who’s got decades of experience fresh perspective to a company’s president in 2016. executive to join a family business. deciding whether a candidate is and who really knows their stu can family dynamic. “I didn’t want to be the one mak- “at outside member needs to hired. bring a breath of fresh air to a com- “I think a lot of entrepreneurs are ing all the decisions all the time,” know exactly what they are getting “Because it’s a longstanding pany,” Riegler said. too caught up thinking they’re the Wujciak said. “I viewed my organi- into — they are joining a family family business, there’s certain In this month’s Second Stage, only one that can run the business,” zation as strong if it could do well business,” Segal said. “It’s a busi- things about the place that you start Crain’s talked to experts who special- said David Wujciak, owner and without (me) around all the time.” ness cultural issue.” to know, who might be successful ize in family business — as well as a CEO of Flint-based Quali ed Tem- Wujciak hired an outside man- Here are some things to keep in here and who might not be,” he small, medium and large family porary Services Inc., which does ager, Doug Billot, in 2001. After see- mind when hiring someone out- said. company — about why family com- business as Quali ed Stang. ing how strong Billot’s manage- side of the family for a key role: at’s also true for Redford panies should consider hiring for key “You start to do things a certain ment skills were, Wujciak promoted Township-based Ackroyd Scotch roles outside of the family business. way every time, and it isn’t always him to general manager in 2003, 1. Learn to let go. Bakery and Sausage Inc., which the more eective way,” he said. allowing him to manage the com- does business as Ackroyd’s Scottish 1. Hiring an outside e stang company has 28 of- pany’s day-to-day responsibilities. Many family business owners Bakery. manager will give your ces throughout the country. An “He’s more analytical and cere- will spend a lot of time nding, hir- Owner Megan Ackroyd said that company a new acquisition planned for this month bral,” Wujciak said. “He thinks ing and training an outside manag- the company let a former employee perspective. will add another ve oces, as well things through in an entirely dier- er, but then fail to step back and al- go because they did not t in with as an oce in Canada. ent way than I do.” low the new manager to lead the the company’s culture and values. A non-family member can bring a e company employs 130 full- SEE FAMILY, PAGE 20 company. “Identify the characteristics of David Wujciak, owner and CEO what you’re looking for in a person of Flint-based Quali ed Temporary and be able to keep those in mind,” Services Inc., said although letting Ackroyd said. “Ask questions that go is hard for business owners, it’s can help you discover what they’re necessary. about and if they present the quali- “Take your hands o the wheel ties you’re looking for.” It’s Good and let somebody else go with it — you get new ideas and a fresh ap- 3. Don’t let one person proach,” he said. “A lot of business- do the hiring. to Be Flexible es hit a certain level and don’t grow after that, and I suspect failure to let To ensure someone will t into DoD you kknow off a company tthath t couldld use an go is part of that. Let those fresh the family business company cul- experienced equity partner, but doesn’t want to sell a ideas ow.” ture, hiring should be done by com- majority equity stake? mittee, and not an individual. 2. Make sure they t Michelson said to keep hiring Do you know of a business owner that would like to within the family fair at SMZ, a group of both family buy out an inactive shareholder’s interest? Or bring company’s culture. and non-family leaders make the on a partner with capital for growth, or make that long hiring decisions together. sought-after add-on acquisition? It’s key that an outside executive “ere’s a number of people in- can t in well with the family busi- volved for the interview and review At Huron Capital, we do our best to be flexible. Our ness’ culture. process for open positions that help Flex Equity solution can provide attractive non-control “ey have to be able to interact determine if someone is a t,” he solutions for owners seeking to diversify their estate, well with the family members,” Se- said. “Dierent people hear and see secure growth capital, shore up their balance sheets or gal said. “If you’re bringing some- dierent things in candidates.” repurchase inactive shareholder interests. If the business owner would prefer to sell a majority interest, we can do that too. It’s all about flexibility. Let’s Grow Together We invest in PEOPLE. Eastern Michigan Bank has the We build LEADERS. products and services to help your business grow, backed by experienced, knowledgeable professionals who are ready to work with you. In St. Clair Platform Criteria Sector Focus And when you choose Eastern Michigan Bank, County call: Buy & Build Strategies Specialty Manufacturing the revenues produced by your relationship Fort Gratiot 810.966.2281 Revenues: Up to $200M Consumer Goods & Services stay local, helping to grow our communities EBITDA: $5M or more Business Services and the local economy. Lakeport 810.385.3211 Equity Positions: 20%-100% Marysville 810.364.4854 Port Huron 810.987.9777 PHOTO BY LARRY PEPLIN

800.397.2504 | easternmichiganbank.com 500 Griswold Street - Suite 2700 | Detroit, Michigan 48226 | 313-962-5800 | www.huroncapital.com 20 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017

SPECIAL REPORT: SECOND STAGE GET CLOSER TO YOUR GOALS WITH HELP FROM JILL K. GARVEY, WHO “Families communicate in HAS JOINED THE MIGLIAZZO GROUP. FAMILY FROM PAGE 18 certain ways — sometimes

Please join us in welcoming Jill Garvey to The Migliazzo Group. Wujciak promoted Billot to presi- very clear and direct, and You can count on her—like all our advisors—to bring experience, dent in 2015. He handles the compa- other times indirect or passion and a fresh perspective to every conversation. So you ny’s hiring and ring. passive. It’s really about can build on your success and your family’s legacy. “He pulled together a team that works well together,” Wujciak said. bringing objectivity to it.” Wujciak said his accomplish- Jamie Michelson, Simons-Michelson-Zieve Inc. The Migliazzo Group ments include engineering the com- pany’s many acquisitions and play- unbiased opinions of strategies Riegler said outside executives ® Jill K. Garvey, CFP ing a big role in growing the company and business plans.” help retention rates because they Vice President organically from a sales standpoint. serve as a sounding board for Private Wealth Manager “e company has grown tremen- 3. Hiring an outside non-family employees’ grievances 248.655.4140 • [email protected] dously because of it,” he said. manager can help raise and inequities. new issues. “ey can be the voice of the em- Merrill Lynch Private Banking and Investment Group 2. Hiring an outside ployees,” Riegler said. “Employees 2600 West Big Beaver Road manager can help Hiring an outside manager can will sometime perceive favoritism or Suite 500 improve help a family company uncover is- unfair practices in terms of promo- Troy, MI 48084 communication. sues. tions and pay raises among the fami- pwa.ml.com/themigliazzogroup Megan Ackroyd and her father Al- ly members.” Hiring non-family members for lan Ackroyd own third-generation Outside executives are also better key roles helps companies com- family company Ackroyd Scotch at holding employees accountable. municate more eectively. Bakery and Sausage Inc., which “A non-family member can and Life’s better when we’re connected® “Families communicate in cer- does business as Ackroyd’s Scottish frequently does serve in that role of tain ways — sometimes very clear Bakery. making sure people are held ac- and direct, and other times indi- e Redford Township-based countable and applying policies and rect or passive,” said Jamie Michel- company was founded in 1949, em- procedures,” Heinrich said. son, president and CEO of ploys 11 and ships its Scottish baked Non-family members who are Merrill Lynch Wealth Management makes available products and services offered by Merrill third-generation family company goods nationwide. hired for key roles can also help Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer, registered investment adviser, and Member SIPC, and other subsidiaries of Bank of America Corporation. Simons-Michelson-Zieve Inc. “It’s Ackroyd’s promoted a non-family bridge the generational gap between The Private Banking and Investment Group is a division of MLPF&S that offers a broad array of really about bringing objectivity to member employee to the position of the current leading generation and personalized wealth management products and services. i t .” production manager in 2016. the next generation. The Bull Symbol, Life’s better when we’re connected and Merrill Lynch are trademarks of e privately held advertising “It’s bringing dierent experience “ey will make sure the right de- Bank of America Corporation. Certified Financial Planner Board of Standards Inc. owns the agency was founded in 1929 and and dierent knowledge to the ta- cisions are being made, while still be- certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CFP® in the U.S. © 2017 Bank of America Corporation. All rights reserved. employs 50. e Troy-based com- ble,” Megan Ackroyd said. ing in a position to groom and serve ARNLDBM7 | AD-02-17-0577 | 471103PM-0516 pany’s clients include the Detroit Megan Ackroyd said the produc- as a role model and a coach for the Red Wings, Detroit Tigers, Macki- tion manager took charge by orga- upcoming generation,” Heinrich nac Island’s Grand Hotel and the nizing the company’s storage, label- said. Michigan Lottery. ing items and allowing the company ey can also bridge the gap be- Within the past two years, SMZ to access ingredients in a timelier tween family and non-family em- has added many key roles outside manner. ployees. *5281'(' of the family dynamic — including “My dad and I have similar per- “Frequently the non-family exec- IN COMMUNITY its executive creative director, vice sonality traits — we both don’t like utive will be able to listen and hear president and director of nance minutia,” she said. “It needed to be the non-family employees in a way and administration. stored and organized better.” the family members don’t,” Heinrich Michelson said hiring a diverse Megan Ackroyd said the produc- said. sta is necessary for the advertis- tion manager also helps lighten the ing company to remain successful. day-to-day operations load for her 5. Hiring an outside “Advertising agencies are only as and her father, allowing them more manager can help with good as their mash-up of people time to work on the business. e transition planning. from dierent backgrounds, per- company plans to expand their bak- spectives and points of view,” Mi- ery by opening a retail store and Hiring an outside manager can chelson said. “at’s what makes it production facility around the Fern- help ensure a family company can w o r k .” dale or Royal Oak area within the make it to the next generation of Outside executives can also help next 12-18 months. leadership. serve as a mediator between family “As we continue down our path of If something happens to the fami- and non-family member employ- growth, we have full intentions of ly company’s leader, such as injury or ees. hiring additional management out- death, it can lead to huge nancial roughout her career, Riegler side of our family,” Megan Ackroyd consequences for the company. has worked with more than 70 fam- said. “ere’s simply no way to grow A factor in Wujciak’s decision to ily companies. She said many without doing so.” step back from the company and times in her role she acted as a promote his outside general manag- family counselor or business ther- 4. Hiring outside er as president was to ensure his apist. managers are good for a company would be prepared for a “I’ve worked with a father and company’s morale. disaster, rather than having someone son who couldn’t be more opposite without prior knowledge walk into in their thinking and their ideas, An outside executive can help the company blindly and try to run it. and I’ve had to bring them togeth- non-family employees feel like “If something happens to me I er,” Riegler said. “(Outside execu- they’re being listened to and appre- would like to know that this organi- tives) are able to evaluate and give ciated. zation can move along,” he said.

“They can be the voice of the employees. Employees will sometime perceive favoritism or unfair practices in terms of Fishbeck, Thompson, Carr & Huber engineers | scientists | architects | constructors promotions and pay raises among the 800.456.3824 | ftch.com family members.”

Carolyn Riegler, O’Keefe & Associates Consulting LLC CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 21 CRAIN'S LIST: LARGEST MICHIGAN FAMILY-OWNED BUSINESSES Ranked by 2016 revenue Company Year founded Percent of Address Revenue Percent First-generation business Rank Phone; website 2016/2015 change owner Other family members in management with relation to the first-generation owner family-owned Meijer Inc. $17,900.0 B 5.9% 1934 Hank Meijer, executive chairman, grandson; Doug Meijer, director, grandson NA 1 2929 Walker Ave. NW, Grand Rapids 49544 $16,900.0 C Hendrik Meijer (616) 453-6711; www.meijer.com Amway 8,800.0 -7.4 1959 Steve Van Andel, chairman, son of co-founder Jay Van Andel; Doug DeVos, president, son of co- 100 2 7575 Fulton St. E., Ada 49355-0001 9,500.0 Jay Van Andel founder Rich DeVos (616) 787-1000; www.amwayglobal.com and Rich DeVos Kelly Services Inc. 5,276.8 -4.4 1946 Terence Adderley, chairman, son 93 3 999 W. Big Beaver Road, Troy 48084 5,518.2 William Russell (248) 362-4444; www.kellyservices.com Kelly Meridian Health Plan 3,732.0 10.9 1997 Jon Cotton, president, Meridian Health Plan of Michigan, son; Sean Cotton, president, Meridian 100 4 1 Campus Martius, Detroit 48226 3,365.5 David Cotton Technologies, son; Michael Cotton, COO, son (313) 324-3700; corp.mhplan.com Ilitch companies 3,400.0 3.0 1959 Christopher Ilitch, president and CEO, Ilitch Holdings Inc., son 100 5 2211 Woodward Ave., Detroit 48201 3,300.0 Michael and (313) 471-6600; www.ilitchcompanies.com Marian Ilitch Plastipak Holdings Inc. 2,689.4 -5.9 1967 William C. Young, president and CEO, son 57 6 41605 Ann Arbor Road, Plymouth 48170 2,856.7 D William P. and (734) 455-3600; www.plastipak.com Mary E. Young Barton Malow Co. 2,425.5 36.2 1924 Ryan Maibach, president, CEO and chairman, grandson; Doug Maibach, executive vice chairman, 75 7 26500 American Drive, Southfield 48034 1,780.3 Ben Maibach Jr. E son; Ben Maibach III, chief community officer, son (248) 436-5000; www.bartonmalow.com Moroun family holdings 2,218.5 F -4.0 1937 Manuel Moroun, son, and Matthew Moroun, grandson, both hold several executive positions. NA 8 12225 Stephans Road, Warren 48089 2,311.2 F T.J. Moroun (586) 939-7000; NA Sherwood Food Distributors LLC 2,154.9 -1.2 1969 Howard Ishbia, executive vice president, sales and marketing, son; Jason Ishbia, executive vice 100 12499 Evergreen Road, Detroit 48228 2,181.3 Earl Ishbia and president, finance and CFO, son; Joel Ishbia, executive vice president, inventory management, son; 9 (313) 659-7300; www.sherwoodfoods.com Alex Karp Gary Karp, executive vice president, corporate affairs and general counsel, son; David Ishbia, sales, son; Scott Ishbia, IT, son The Suburban Collection 2,130.4 6.4 1948 David T. Fischer, chairman and CEO, son; David Fischer Jr., president and COO, grandson; Zachary 100 1795 Maplelawn Drive, Troy 48084 2,001.5 Richard Fischer Fischer, director, grandson 10 (877) 471-7100; www.SuburbanCollection.com H.W. Kaufman Financial Group Inc./Burns 2,050.0 12.0 1969 Alan J. Kaufman, chairman, president and CEO, son; Daniel J. Kaufman, corporate vice president, 100 & Wilcox Ltd. 1,830.0 Herbert W. grandson 30833 Northwestern Highway, Farmington Kaufman 11 Hills 48334 (248) 932-9000; www.kaufmanfinancialgroup.com Haworth Inc. 1,940.0 G 6.6 1948 Dick Haworth, chairman emeritus, son; Matthew Haworth, chairman, grandson 100 12 1 Haworth Center, Holland 49423 1,820.0 G.W. Haworth (616) 393-3000; www.haworth.com Serra Automotive Inc. 1,838.8 14.1 1973 Joseph Serra, president, son 100 13 3118 E. Hill Road, Grand Blanc 48439 1,612.1 Albert M. Serra (810) 694-1720; www.serrausa.com Walbridge 1,450.0 1.3 1916 John Rakolta Jr., chairman and CEO, son; John Rakolta III, EVP and CAO, grandson NA 14 777 Woodward Ave., Suite 300, Detroit 48226 1,432.0 John Rakolta H (313) 963-8000; www.walbridge.com Wolverine Packing Co. 1,280.0 0.9 1937 Jim Bonahoom, president, son; Roger Bonahoom, vice president, son; Jay Bonahoom, vice 100 15 2535 Rivard, Detroit 48207 1,268.0 Alfred Bonahoom president grandson (313) 259-7500; www.wolverinepacking.com Soave Enterprises LLC 1,193.0 -3.2 1961 Angelique Soave, vice president, daughter; Andrea Soave Provenzano, vice president, daughter 100 16 3400 E. Lafayette, Detroit 48207 1,232.0 Anthony Soave (313) 567-7000; www.soave.com The Diez Group 1,152.0 6.8 1973 April Diez, vice chairman, daughter; Gerald Diez Jr., president, son; Sherry Diez, vice president, 100 17 8111 Tireman Ave., Dearborn 48126 1,079.0 Gerald Diez daughter; Mark Diez, vice president, son (313) 491-1200; www.thediezgroup.com Zeigler Auto Group 1,000.2 8.0 1975 Aaron Zeigler, president, son 100 18 4201 Stadium Drive, Kalamazoo 49008 926.4 Harold Zeigler (269) 375-4500; www.zeigler.com Garber Management Group Inc. 946.6 11.5 1907 Richard J. Garber, president, grandson 81 19 999 S. Washington Ave., Saginaw 48601 849.3 Guy S. Garber (989) 790-9090; www.garberauto.com Bissell Homecare Inc. 900.0 0.0 1876 Mark J. Bissell, CEO and chairman, fourth generation great-grandson; Max M. Bissell, global 100 20 2345 Walker Ave., Grand Rapids 49544 900.0 M.R. Bissell accounts manager, fifth generation; M. Catherine Bissell, director corporate affairs (616) 453-4451; www.bissell.com United Shore Financial Services LLC 857.0 68.0 1986 Mat Ishbia, president and CEO, son 100 21 1414 E. Maple Road, Troy 48083 510.1 Jeffrey Ishbia (855) 888-8737; www.unitedshore.com LaFontaine Automotive Group 816.8 6.3 1980 Ryan LaFontaine, dealer, son; Kelley LaFontaine, dealer, daughter; Michael T. LaFontaine Jr., 100 4000 W. Highland Road, Highland Township 768.4 Michael T. dealer/LaFontaine Global Director, son 22 48357 LaFontaine (248) 887-4747; www.thefamilydeal.com Kenwal Steel Corp. 774.0 -14.9 1947 Kenneth Eisenberg, chairman and CEO, son; Stephen Eisenberg, president, Burns Harbor, 100 23 8223 W. Warren Ave., Dearborn 48126 910.0 Sol Eisenberg grandson (313) 739-1000; www.kenwal.com

This list of family-owned businesses is an approximate compilation of the largest such businesses in Michigan. Art Van Inc., which had $660 million in 2016 revenue, is no longer on this list because Art Van Elslander, chairman and founder sold the company to Boston-based private equity firm Thomas H. Lee Partners in February. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analyses and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. For some companies, the founders were later bought out by another family. Actual revenue figures may vary. NA = not available. B Supermarket News Top 75 estimate. C Supermarket News estimate. D Estimated revenue includes acquisition of APPE packaging division of LaSeda de Barcelona Group in July 2015. E Founded in 1924 as C.O. Barton Co. by Carl Osborn Barton. The Maibach family acquired majority control in 1961. F Crain's estimate. G From MiBiz. H George B. Walbridge and Albert H. Aldinger founded the company in 1916. John Rakolta Sr. bought the company in 1963 with business partner Robert Robillard.

LIST RESEARCHED BY SONYA D. HILL 22 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 Jimmy John’s Field adds more premium seating By Bill Shea later this year that would open in nights and weekends — the most [email protected] 2018. attractive weather and free time for e owner of Jimmy John’s Field e USBPL, which added a fourth families. He sells the ballpark expe- in Utica has added ve premium ta- team at Jimmy John’s Field for this rience as oering elite-level cus- bles that he expects to generate season, is for players age 18 to 25 tomer service and ballpark cleanli- $500,000 for his United Shore Profes- who haven’t been signed by Major ness for both fans and corporate sional Baseball League. League Baseball’s aliated farm sponsors. Called Park View Diamond Ta- teams. e league has a baseball e USPBL had 500 season ticket bles, they’re four-seat half-moon academy system aimed at improv- holders last season, a number Ap- shaped tables on the stadium’s sec- ing player skills, and it saw nine US- pleby said he’ll grow by 25 percent ond level, and they lease for $20,000 PBL players signed to the minors. for this season. It averaged 3,200 per annually under ve-year agree- Appleby’s concept is a 75-game game, and sold out 42 of 75 games ments. e developmental baseball May-September schedule, played last season at Jimmy John’s Field, These half-moon tables rent for $20,000 a season on a ve-year contract at Jimmy league, which begins its second sea- round-robin style, mainly on week- which sits alongside M-59. John’s Field. son in May, had 18 such tables (at eld level) in 2016 that leased for the same terms — creating $1.8 million in revenue over the life of the leases. e new tables at the 1,900-seat stadium were installed in the osea- son along the rst base side, replac- ing a pair of drink rail areas along the second-story concourse. Rochester sports entrepreneur Andy Appleby, who nanced the $16 million stadium and league startup cost, said there is demand for add- ing premium ta- bles. ey’re leased by com- Andy Appleby: panies, with There’s demand some splitting for more premium the cost and tables. sharing the game tickets. If the demand is greater that expected — premium seating information for 2017 is now being given to potential buyers — more tables could be add- ed. “ ere’s a possibility that we add an additional ve on the other side this year or someday, but nothing denite in the plans,” he said. e stadium also has 24 suites of “Michigan State University’s Executive varying congurations and locations MBA taught me to be a better business that lease under ve- to seven-year leader. Learning to trust myself was deals, and cost $35,000 to $55,000 the biggest return on investment, and annually. At a minimum, Appleby is now I help daycare owners see their generating $4.2 million in long-term own potential as business owners.” suite revenue, and likely more. Two suites remain available for lease this With classes held every other weekendfor season, and Appleby predicted 20 months, an Executive MBM A from the they’ll sell before the season begins. Broad College of Businesss gives you the e stadium and league also have naming rights, signage, and other confidence to make buusinesss happen. corporate sponsorship deals that brought in $3 million last season. Among the companies with suite or KELLLIE BOYD, MBAB ’15 other corporate sponsorship deals at MICHIGANN DIRRECECTOR FIFIRRST CHILDREN’SSFFININANANCENCE the ballpark are Budweiser, General Motors Co., Ford Motor Co., AAA, Scotts Miracle-Gro Co., Pepsi and Birmingham-based Belfor USA. In 2015, Troy-based mortgage lender United Shore Financial Ser- vices LLC signed a 10-year deal to LLearn more at: put its name on Appleby’s baseball BRROAADD.MSU.EDU/KELLL IE league, and Champaign, Ill.-based Jimmy John’s Franchise LLC and its franchisees jointly signed a 10-year contract for the stadium name. Appleby said last year that the league was protable, but didn’t dis- close specics. It’s been so success- ful that he intends to announce a deal for a new ballpark elsewhere CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 23 McGregor Fund takes aim at poverty, safety net programs

By Sherri Welch [email protected] e Detroit-based McGregor Fund has shifted its grant areas to focus more strongly on alleviating poverty and strengthening the social safety net in Metro Detroit and away from fund- ing arts, culture and education. Made after a year of assessment across the community, the changes build on the founders Tracy and Kath- erine McGregor’s legacy of supporting basic needs and responding to the dis- connection that many vulnerable peo- ple feel from the progress Detroit is making, said McGregor Fund Presi- dent Kate Levin Markel. McGregor hadn’t looked at the city in a fresh way since its bankruptcy, she said, noting it’s incumbent on the foundation’s board and sta to period- ically reinterpret its grantmaking areas to ensure they reect the most press- ing needs of the time. After reviewing where other foun- dations are working, now, McGregor came to the realization that support for basic needs services is needed now more than ever, Markel said. “ e concentration of poverty is not moving in the city and other parts of the region.” “We are at a moment in our long life where we feel we need to 100 percent commit our work in support of our poorest neighbors,” she said. In early childhood education there is now a big commitment from other funders including the Kresge Founda- tion, W.K. Kellogg Foundation and IP Experience soon, the Ralph C. Wilson Jr. Founda- tion, Markel said. ® Cultural and educational organiza- In Your Corner. tions could still see grants from Mc- Gregor, but they would need to fall into „ Patent and trademark prosecution. three new or expanded areas: J Basic needs such as food, shelter „ Freedom to operate, novelty, and state and access to primary medical care, of the art searches and opinions. building on earlier support. J Recovery and restorative services „ Intellectual property license agreements. for people who have experienced abuse or trauma and/or have sub- stance abuse problems, expanding earlier support. J Proven skill-building programs that lead to broader personal and career choices for teens and adults living in poverty, a new area of funding for Mc- Gregor. e majority of safety net services are funded by government, and that support has been declining for many years, Markel said. ough foundation support can’t replace government funding, “we feel there’s a lot of work to be done and we’re going to intensify our focus,” she said. e McGregor Fund is a private foundation established in 1925 by the McGregors “to relieve the misfor- tunes and promote the well-being of mankind.” Its assets totaled $162 million as of Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Contact Charles Gray at [email protected] June 30, 2016. 24 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017

ing into an eco- ce-holders about their political PEOPLE: nomic tailspin. journeys. What does it take to run for Troy Marriott. public oce and what does it take to SPOTLIGHT CALENDAR $150. Contact: stay there? Speakers: Ruth Johnson, UPCOMING EVENTS members; $50 nonmembers. Web- Judy Strongman, Michigan Secretary of State; Sherry Nick Karmanos joins J The State of Relations Between site: bbcc.com. phone: (248) Gay-Dagnogo, former Detroit City children’s fund Cuba and the U.S. and Future Opportu- 233-4213; email: Council sta member and state rep- nities. 11:30 a.m.-1:30 p.m. March J Talent Outlook: Detroit Drives De- jstrongman@jvs- resentative of Michigan’s 8th District Nick Karmanos, former chief 21. Detroit Economic Club. Find out grees. 8-10:30 a.m. March 23. Detroit det.org; website: serving northwest Detroit; and Anne fundraiser for the Barbara Ann what’s next and learn about future Regional Chamber. Leaders from the jvsdet.org/ Mervenne, president of Mervenne & Karmanos opportunities in Cuba. Westin Book higher education, business, govern- Connie Holzer tradesecrets. Co., Moderator is Kelly Ross- Cancer Insti- Cadillac. $45 members; $55 guests of ment and nonprot and philan- man-McKinney, CEO and principal tute, joined members; $75 nonmembers. Web- thropic sectors meet to oer per- J Great Lakes Business Intelligence of Truscott Rossman. Great Lakes the Detroit site: econclub.org. spectives from the private and public and Big Data Summit. 8 a.m.-5 p.m. Culinary Center, Southeld. $50 Children’s sector, and highlight work the De- March 30. WIT Inc. Attendees will member; $70 nonmember. Contact: Fund as its J CFA Detroit Speaker Series Lunch troit Drives Degrees (D3) initiative is learn best practices and success sto- inforummichigan.org chief advance- Featuring Adrian Cronje. Noon-1:30 doing to strengthen the talent pipe- ries to help them capitalize on big ment ocer. p.m. March 21. line and meet the growing demands data, business intelligence, analytics J BLM Leadership Summit on Fiscal And he’s re- Certied Finan- of employers. Detroit Athletic Club. and data visualization opportuni- Stability. Noon-5 p.m. April 17. Busi- cruited two cial Analyst Soci- $35 members; $70 nonmembers. ties. Troy Marriott. $169. Contact: ness Leaders for Michigan. Discus- Nick Karmanos other former ety Detroit. Contact: Maggie Greaney, (313) 596- Erin Adair-Guy, phone: (248) 641- sion on how to work together toward fundraisers of Speaker: Adrian 0482; website: detroitchamber.com 5900, ext. 244; email: bisummit@wit- the future for Michigan and local the cancer institute to the Detroit Cronje, CFA inc.com; website: greatlakesbisum- communities. Radisson Hotel, Lan- Children’s Fund. Karmanos served chief investment J Big Data and Business Analytics mit.com. sing. $50. Contact: Jennifer Hayes, as senior vice president of institu- ocer and Symposium. 8 a.m.-6 p.m. March 24. phone: (313) 259-5400; email: jenni- tional relations at the Karmanos founding part- Wayne State University. is sympo- J Conversational Intelligence. 8-10 ferh@businessleadersformichigan. Cancer Institute for 16 years be- ner of Balentine, sium focuses on managing and ana- a.m. March 30. Inforum. Learn the com. fore leaving in September. Adrian Cronje on “An Industry lyzing the data captured through ve “essentials” used by conversa- Wake Up Call: marketing, product development, tionally intelligent people. Lab lead- J Who Do You Trust? Leading in an Beaumont names What is the Real reat to Our Indus- manufacturing, distribution, sales, er is Erika Alessandrini, president/ Era of Populism. 11:30 a.m.-1:30 try and How to Turn it into Opportu- and service in a global setting. Gain CEO, Strategies for Success. Denso p.m. April 19. Detroit Economic two board members nity?” $45. e Community House, insights on identifying big data op- International America, Southeld. Club. Richard Edelman, president Birmingham. Contact: Michelle portunities, developing business $85. Contact: inforummichigan.org. and CEO of Edelman, will discuss Ronald Hall Jr., CEO of Bridge- Doran, phone: (734) 546-2390; cases, and using analytics to drive the 2017 Edelman Trust Barometer water Interiors LLC, and William email: [email protected] business success. Wayne State Stu- J The Culture of Accountability. 7-9 and actions business leaders can Goldsmith, dent Center Building. $40. Contact: a.m. March. 31. e Business Round- take to climb back from a position co-founder of J Tech Takeover: Safe Human-Robot Mark Garrison, phone: (313) 577- table. Stanley Targosz III, CEO of Ed- of deteriorated trust, and ultimate- Nantucket Collaboration. 8:30-10:30 a.m. March 5683; email: [email protected] ucation Planning Resources, will ly restore belief in a system that too Capital Man- 22. Automation Alley. Technology speak on how stronger cultures of many believe has failed them. Mo- agement LLC, distributor and integrator Beh- J Expanding Education and Access accountability lead to higher perfor- torCity Casino Hotel, Detroit. $45 have been ap- co-MRM leads a discussion on the Through Public Media. 11:30 a.m.-1:30 mance and commitment within members; $55 guests of members; pointed to safety aspects of using collaborative p.m. March 24. Detroit Economic companies. Birmingham Country $75 nonmembers. Website: econ- Beaumont robotics. Topics will include systems Club. Paula Kerger, president and Club. $35 person, $350 table of eight club.org. Health’s level issues, safety audits, smart con- CEO, PBS, will share insights into and branding opportunities. Con- 15-member siderations and risk assessment. A PBS’ eorts to remain relevant amid tact: Christa Moxon, phone: (269) J Positive organization development: Ronald Hall Jr. board. panel discussion and Q-and-A peri- a changing media environment. 685-7829; email: christa.moxon@ A new change equation that’s chang- Hall, 48, has od will follow. Speakers will include: Townsend Hotel, Birmingham. $45 thebusinessrt.org; website: thebusi- ing everything. 4-5:30 p.m. April 24. served on Brent Bartson, technical manager members; $55 guests of members; nessrt.org. Center for Positive Organizations. Beaumont’s for Universal Robots; Elena Domin- $75 nonmembers. Website: econ- Speaker: David Cooperrider, univer- Health Audit guez, safety consultant, Pilz Auto- club.org. J Staying Relevant in a Noisy World. sity distinguished professor and and Compli- mation Safety; Ryan Groat, senior 7:30-9 a.m. April 4. Leadership Oak- Fairmount Santrol Professorship, ance Commit- engineer, Panther Global Technolo- J Putting Social Media to Work for land. Joyce Jene- Weatherhead School of Manage- tee since gies; Adam Boike, application engi- Your Business. 6-9 p.m. March 28. reaux, former ment, Case Western Reserve Univer- Beaumont neer, Behco-MRM. Automation Al- Schoolcraft College. Discover how to publisher and sity. Ross School of Business, Uni- Health formed ley. $20. Email: events@ select and manage the right social president of the versity of Michigan. Free. Website: in 2014 and is automationalley.com; phone: (800) media platform(s) for products or Detroit Free positiveorgs.bus.umich.edu William Goldsmith at the helm of 427-5100. services. Jeress Center, Schoolcraft Press and Michi- Detroit-based College, Livonia. $45. Contact: Sara gan.com, on Bridgewater Interiors. Goldsmith, J Real Estate Forecast Breakfast. Gumina, phone: (734) 462-4438; leadership and 64, has served as chairman of 8-9:30 a.m. March 23. Birmingham email: [email protected]; business lessons Calendar guidelines. Visit Beaumont Health Investment Chamber of Commerce. New hous- website: sbdcmichigan.org. she learned crainsdetroit.com and click “Events” Committee since its inception and ing trends in southeast Michigan Joyce Jenereaux along the way. near the top of the home page. is a managing member of Nan- and the developments in Detroit. J 9th Annual Trade Secrets with Connie MSU Manage- Then, click “Submit Your Events” tucket Capital Management. Speakers: Dan Elsea, president, bro- Holzer. 6-9:30 p.m. March 29. JVS. Key- ment Education Center, Troy. $32 from the drop-down menu that will S. Evan Weiner, COO and exec- kerage services, Real Estate One; note speaker Connie Holzer, owner of members; $36 nonmembers. Web- appear. Fill out the submission form, utive vice president of Edw. C Levy Mike McNally, vice president, opera- Tom Holzer Ford, who has built it into site: leadershipoakland.com. then click “Submit event” at the Co., is stepping down from the tions, Olympia Development; Mi- one of the top Ford dealerships in the bottom of the page. board. chael Stoskopf, Home Builders Asso- country. Holzer took over the dealer- J Women in Politics: The Path to Pub- More Calendar items can be found ciation of Southeastern Michigan. ship when her husband died in 2006, lic O‘ce. 5-7:30 p.m. April 10. Info- at crainsdetroit.com/events. SpartanNash e Reserve, Birmingham. $40 at the same time the country was go- rum. Hear from elected women of- names new CEO

Grand Rapids-based grocery services provider, opened at 28800 29193 Northwestern Highway, store chain SpartanNash’s presi- Beck Road, Wixom. Telephone: (248) Southeld. Telephone: (248) 990- dent and COO David Staples will DEALS & DETAILS 498-4285. Website: worksighted. 6484. Website: allenmichaelvirgin- assume the role of CEO when its CONTRACTS tor City Comic Con, owned by Motor com. hair.com. current chief, Dennis Eidson, re- J Fourmidable Group Inc., Bing- City Comics & Conventions, Farm- tires. ham Farms, has been appointed as ington Hills; Caucus Club restau- J Tubby’s Sub Shops Inc., Clinton Eidson will continue as the management agent for e Gris- rant, Detroit; and a book by Charles Township, has opened a store at 501 Deals & Details guidelines. Email chairman of the company’s board wold, 1117 Griswold St., a 80-unit Mok “Testosterone: Strong Enough E. Michigan Ave., Ypsilanti. Tele- [email protected]. Use of directors after he retires as CEO apartment community in Detroit. For A Man, Made For A Woman,” phone: (734) 483-5227. Website: tub- any Deals & Details item as a model in late May. Website: fourmidable.com. Shelby Township. Website: ckcagen- bys.com. for your release, and look for the SpartanNash also appointed cy.com. appropriate category. Without Staples to the board of directors. J CKC Agency, Farmington Hills, a STARTUPS complete information, your item will He has been on the company’s ex- public relations and media services EXPANSIONS J Allen Michael Experience, South- not run. Photos are welcome, but we ecutive team for 17 years. rm, has added three accounts: Mo- J Worksighted Inc., Holland, an IT eld, a hair salon, has opened at cannot guarantee they will be used. March 13, 2017 CRAIN’S DETROITCRAIN BUSINESS’S DETROIT BUSINESS // MARCH 13, 2017 Page25 25 Snyder’s last chance for education reform A new report on how to over- During his more executive summary. thors said could help address a haul Michigan’s under-performing e commission proposed an an- looming talent crisis for the state. public school system could be Gov. than six years in nual increased taxpayer investment “By 2025, 65 percent of jobs in Rick Snyder’s last chance to make oce, education in education topping $2 billion, in- Michigan will require a postsecond- meaningful education reform be- cluding up to $900 million a year in ary credential, and our workforce is fore his term ends next year. reform has additional funding for high-risk pov- not yet prepared to meet these new During his more than six years arguably been erty areas like Detroit where literacy demands,” the commission wrote. in o ce, education reform has CHAD LIVENGOOD rates are in steady decline. “Only 36 percent of Michiganders arguably been Snyder’s kryptonite Snyder’s e bipartisan panel called for over 25 years of age have earned an — every time he touches the con- kryptonite. top in student achievement across empowering the governor to run the associate degree or higher — ranking troversial and deeply emotional the United States. Michigan fourth education department instead of a Michigan 34th for degree attain- subject, something seems to go funding formula to replace the graders rank 41st in reading and 48th statewide partisan Board of Educa- ment.” awry. state’s 38-year-old School Aid Act. among children from higher-income tion. It also encouraged the consoli- With another gubernatorial elec- e Republican governor’s at report is collecting dust on the families. dation of 540 individual school dis- tion on the horizon, there’s a lot of struggle to nd his footing with shelves of education lobbyists in “e urgency could not be greater. tricts. opportunity for Gov. Snyder to tackle this issue started with the ambi- Lansing. While it is di cult to face, the data e commission said Michigan education reform once more — but tious Education Achievement Au- Tackling big education issues are clear: Michigan children are fall- students need universal free access not a lot of time to do it. thority, an entity created in 2011 largely took a backseat until Snyder ing behind,” the commission wrote to 4-year-old public preschool and Chad Livengood: (313) 446-1654 through an interlocal government spent most of 2015 and half of 2016 in the rst paragraph of its 21-page community college, which the au- Twitter: @ChadLivengood agreement between Snyder’s convincing the Republican-con- emergency manager in Detroit trolled Legislature to rescue Detroit Public Schools and Eastern Michi- Public Schools from its $617 million gan University. debt, which posed a threat to the e EAA took over 15 chronical- state’s credit rating. ly failing Detroit schools in the fall Snyder couldn’t convince law- JOB FRONT of 2012. e results have been makers that Detroit needed a city- rocky, at best. wide commission to put DPS and MISCELLANEOUS POSITIONS AVAILABLE e school reform entity was al- charter schools on the same play- most immediately plagued by high ing eld and better manage where RETIREMENT SYSTEMS OF THE SURVEY CITY OF DETROIT sta and student turnover, nan- schools operate in a city with an Joint Personnel Committee cial problems and leadership abundance of schools in some ANALYZE 500 Woodward Ave, Suite 3000 problems under former Chancel- pockets and “education deserts” in Detroit, Michigan 48226 lor John Covington, who was others. JOB TITLE: Executive Director - Retirement Systems picked by Snyder’s o ce and spent But when Snyder runs into road- MATCH SALARY: $150,000 - $200,000 a lot of time attending out-of-state blocks in the Lansing bureaucracy, (Starting salary is dependent upon qualifications and experience) education conferences. the former venture capitalist tries The City of Detroit has two distinct and separate retirement Snyder spent most of the 2013- alternate routes. systems: the General Retirement System; and the Police and 2014 legislative session trying to e EAA was Snyder’s attempt to Fire Retirement System. The legal and fiduciary responsibility for the general get lawmakers to give the EAA per- bypass the Granholm-era School administration, management, and proper operation of the Retirement Systems, and for making effective their provisions, is vested in each Retirement System’s Board of Trustees. manent school district status. e Reform O ce, created within the CrainsDetroit.com/JobConnect | The Retirement Systems provide services and benefits to approximately 9000 active proposal bounced back and forth Michigan Department of Educa- members and 12,000 retirees and beneficiaries. Currently, combined Retirement System in the two chambers, but never tion. e reform o ce was seen as assets are in excess of $4 billion. made it to governor’s desk. Demo- ineective because it has never Each Retirement System is comprised of two distinct plans: a legacy traditional defined crats pilloried the EAA as a “failed forced the closure of a single failing benefit plan and a new hybrid defined benefit plan. Information about each Retirement MARKET System is available on the RSCD website at www.RSCD.org. experiment,” and some Republi- school. Please refer to the website for the full job description and benefits. can lawmakers were deeply skepti- When it became clear that the Submit information for this job posting to: [email protected] cal about whether it would work. EAA’s days were numbered, Snyder PLACE In May 2013, I broke a story for used his executive authority to e Detroit News about a group of move the School Reform O ce BUSINESS OPPORTUNITIES state o cials, technology experts from the education agency — and charter school interests work- which he has no constitutional con- $$ BUSINESS OPPORTUNITY $$ ing on a project to create a new trol over — to the Department of Established Bridal & Formal North Macomb County low-cost, tech-centered public ed- Technology, Management and EAL STATE Seeking working Partner w/Capital. R E ucation model. Budget. e decision cut the De- Possible future ownership. WATERFRONT PROPERTY e task force had good inten- partment of Education entirely out Call 248-651-5267 tions — save taxpayers money, im- of the school-closing decision pro- Great, ’Great Lakes Living’ in the Port Huron area is waiting for you! prove achievement outcomes and cess. FRANCHISE OPPORTUNITIES create new choices for parents. It In January, the School Reform We offer you the Finest had all of the hallmarks of Snyder’s O ce rolled out a plan to close 38 Residential Real Estate governing ethos. persistently low-performing in the Port Huron area! But the government o cials in- schools, including 25 in Detroit. If your housing interests lead you volved were using their private e closure plan sparked instant toward a home on Lake Huron, St. emails, presumably to evade the blowback that seemed to catch the Clair River, Black River or a Black River Canal, we have the most state’s public records laws. governor’s o ce o guard. extensive inventory of waterfront And one of the group’s leaders, In a reversal, Snyder turned to listings in the area as well as an Lansing attorney Richard McLel- Superintendent of Schools Brian experienced staff of dedicated real lan, gave the mission a name that Whiston and the Department of estate professionals to assist you. just smelled funny to the state’s Education for help. FRANCHISES AVAILABLE CHECK US OUT AT public education establishment: Whiston proposed a 18-month WWW.PASSPORTPIZZA.COM We look forward to welcoming you to the Port Huron area! “skunk works.” e group was de- reprieve for the schools to show ac- CALL (586) 992-8800 Please ask for JoAnn or Jeff Wine. vising a voucher-like school fund- ademic improvement through an OR EMAIL [email protected] ing model without any input from agreement that most of the school INDUSTRIAL SERVICES educators. districts are expected to sign onto Snyder quickly distanced him- — avoiding closures for another C.W. JENNINGS (810) 985-5080 ~ joannwine.com self from “skunk works,” even school year. INDUSTRIAL EXCHANGE though public records revealed It’s been one setback after anoth- Global Industrial Consulting VACANT LAND COMMERCIAL PROPERTIES McLellan formed the task force at er for Snyder on education reform. Construction • Acquisitions FOR SALE the urging of Snyder aide Rich On Friday, the governor’s 21st Exporting • Financing Ç DOWNTOWN ROCHESTER Ç TELEGRAPH ~ I-75/275 Baird. Century Education Commission re- (855) 707-1944 3.4 Acre Vacant Land McLellan was the author of an- leased a sweeping list of policy pro- Walk to Downtown Frenchtown Twp. 38+ Acres 30,000 sq. ft. School Built 2007/12 other Snyder-assigned report on posals to “transform, not tinker” Call or email today for information Borders Clinton River & Pollyann Trail + 6,600 sq. ft. Church Built 1998 school nance reform to create an with an education system that on a custom advertising plan! Mr. Messier 586-254-6800 [email protected] Call Chuck 248-821-0752 “any time, any place, any pace”- ranks closer to the bottom than the 313.446.6068 Real Estate Profssional Services, Inc. 26 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 Olympia still working on deal to sell Joe Louis Arena seats, xtures We are giving away $80,000 to 16 local By Bill Shea [email protected] non-profits in 2017, chosen by you! If you want to buy your seat from Each non-profit organization will win $5,000 to Joe Louis Arena or the Palace of Au- put toward their community mission. burn Hills after the Red Wings and Pistons leave for their new home, sit PHASEP ONE | March 2017 tight. Feeding Our Communities Nearly six months after Crain’s rst reported that the Red Wings want to see • Food Banks • Food Pantries equipment and xtures at city-owned • Soup Kitchens Joe Louis auctioned to the public — in- cluding the highly sought original seats — nothing has happened. PHASE TWO | June 2017 Why? Olympia Development, Protecting Our Communities which runs the Red Wings’ business operations, says it’s still in the process • Animal Shelters • Humane Societies of inventorying everything inside the JOE LOUIS ARENA • Animal Rescue Centers arena, and it doesn’t expect to formal- Most permanent arena xtures, such as the seats, are city property. Joe Louis falls ize a deal with the city until this sum- under the Detroit Building Authority. mer. Olympia and the team also have PHASEP THREE | Sept. 2017 been busy nishing the new $635 mil- can be sold, what can be donated, and auction, which could occur near the HousingH Our Communities lion arena scheduled to open in Sep- what belongs to the city. e new are- time Little Caesars Arena opens. tember, a spokeswoman said. na is expected to include heritage dis- While the split of sale proceeds • Homeless Shelter • Housing Projects As for the Palace of Auburn Hills, plays from both teams. hasn’t yet been negotiated with the there are no plans to sell anything be- • Home Building Groups Any sale is expected to use a city, some or all of the money could be cause the building’s fate hasn’t been third-party auction service that spe- earmarked for charities, Arapo said, decided. Joe Louis Arena, on the other cializes in such work. and some xtures could simply be do- PHASE FOUR | Nov. 2017 hand, is set to be demolished and the “We’re still doing inventory. en nated. Serving Our Communities waterfront land used for commercial we’re working on a deal with the city. Most permanent arena xtures, development. en we’d nalize a decision on a third such as the seats, are city property. Joe • Veterans Programs • Military Outreachh Olympia since last year has been party. en we’d decide on who leads Louis falls under the Detroit Building • Active Duty Support Services cataloging everything inside Joe Louis, and revenue sharing,” said Jennifer Authority, under the authority’s Mu- which the city built for $57 million and Arapo, director of marketing and nicipal Parking Department. e may- MemberMembMber FFDIDIC opened in 1979. e inventory is to de- communications at Olympia Enter- or’s oce was unaware of Olympia’s 800800.355.355 06064411 | IIndependentd d tBBank.k com termine what will be moved to the new tainment. She added that third-party preliminary talks with the city about an Please see official rules at IndependentBank.com/Investing arena, what must be replaced, what vendors are being vetted for a possible auction, so it declined to comment un- til it has more information. Seats are of special interest be- cause there is an active market for them among sports fans, nostalgia bus, sports bars, and longtime sea- son ticket holders who want their speci c chair. Seats from demolished sports venues can sell for a few hun- dred dollars into the thousands. “Anything of that vintage, because it’s the Red Wings, they’re going to have a successful sale,” said vintage seat broker Sean Walsh in an October conversation with Crain’s. A lifelong Red Wings fan who has owned Cleveland-based vintage sports chair seller Original Stadium Seats since 1987, Walsh said he has a waiting list of people who want Joe Louis Arena seats. Fans also are inter- ested in everything from arena signs to xtures. e Palace faces an unknown fu- ture, meaning it’s too soon to talk about the sale of any xtures. Like the Red Wings, the team will determine what it wants to move to Little Cae- sars Arena and to a new team head- quarters and practice facility that it will open in 2018 in New Center. “Nothing has been determined on the future of the Palace other than we won’t be playing basketball (there) next year,” Pistons spokesman Kevin Grigg said via email. e Pistons began a three-year, $6 million replacement of all of the Pal- ace’s 20,000 seats in 2015, under a deal with Grand Rapids-based Irwin Seat- ing Co. e third phase of the seating project, which included replacing more than 10,000 upper bowl seats this summer, is now on hold. Bill Shea: 313 (446-1626) Twitter: @Bill_Shea19 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 27 University of Michigan endowment banks on funds that make loans

By Janet Lorin e fund also isn’t a new investor in since June 30, including as much as pocket of investments. Bloomberg News “This area has credit strategy — about 10 of its exist- $70 million to a pair of Asia credit “If the president continues on his e University of Michigan is bet- emerged as the ing managers’ investment approach- funds founded by executives who ran path of deregulation, banks will be ting its endowment can make money supply and es use mortgage strategies, for exam- Lehman Brothers’ Asia special situa- back lending to lower- and mid- on loans to small businesses from ple. tions group. dle-market companies in the near fu- Barcelona to Beijing. demand dynamic “ is area has emerged as the sup- Michigan invested with nine cred- ture, which could constrain the e endowment, valued at $10.5 has changed in ply and demand dynamic has it-related managers in the year ended amount of potential opportunities,” billion as of Dec. 31, has added more changed in that marketplace, thus June 30, including Black Toro Capital for these funds, said David Fann, chief managers who specialize in lending that marketplace, providing investors with a more at- Fund II, to which the school commit- executive ocer of TorreyCove Capi- — through private credit, distressed thus providing tractive return relative to the risks as- ted about $53 million. e fund lends tal Partners, which advises institu- and other forms of debt — according sumed,” said Ken Shimberg, who to new, small or nancially distressed tional investors on alternative assets. to annual reports and other public investors with a oversees investments for endow- clients in Spain. Since endowments categorize in- documents. more attractive ments and foundations at Mercer In- Abax Global Capital makes loans to vestments dierently, it’s not easy to e strategy accounted for about return relative to vestments Inc. and formerly worked small- and medium-sized enterprises discern if the private lending strate- 30 percent of new managers the en- at Brown University’s endowment. that are based in China or have a sig- gies are considered xed income, pri- dowment invested with in the year the risks Investments in Michigan’s endow- nicant Chinese connection. e vate equity, absolute return or an op- through June 30. e board of regents assumed.” ment declined 1.4 percent for the year school committed $40 million to its portunistic allocation, Fann said. approved commitments of about ended June 2016. e fund has been fund. Of the about 30 of Michigan’s new $400 million to these managers. Ken Shimberg, led by chief investment ocer L. Erik e school also committed $50 managers in scal 2016, half were in Endowments, pensions and other Mercer Investments Inc. Lundberg since 1999. million to Emet Capital Management absolute return, which includes institutional investors are looking for for its New York-based fund that in- hedge funds. e endowment also in- yield at a time of low-return expecta- bit of a gap, they’re lling the gap,” said Spain, China vests in distressed municipal bonds creased the number of managers in its tions. A quarter of private-debt inves- Bill Bonawitz, director of municipal collateralized by student and senior energy strategy. tors in a recent survey by research research at PNC Capital Advisors, Michigan’s board of regents ap- housing. At least seven managers, mostly rm Preqin Ltd. said their portfolios which manages about $7 billion in proved at least one additional com- from hedge funds, who were listed in outperformed expectations last year municipal assets. mitment to similar lending strategies More lending the 2015 report don’t appear the fol- and a majority said they plan to in- Michigan’s endowment didn’t dis- in scal 2016 that isn’t listed in the lowing year. ese include value in- crease allocations in 2017. close fees charged for these commit- annual report of current investments. e Trump administration has said vestor Grantham, Mayo, Van Otter- ments, the length of the investments e fund also received approval from it plans to loosen nancial services loo & Co., and Highclere Filling void or rates of returns. Rick Fitzgerald, a the board to add more managers regulations, which could impact this International Investors. spokesman for the school, declined to Private credit is backed mostly by provide additional information. non-bank nancial rms looking to Michigan, the 10th largest U.S. col- ll a void left by banks that cut back on lege endowment, had investments loans to hold more capital under with about 250 managers as of June Dodd-Frank provisions. 30, and the school has invested in “Where regulations have caused a multiple funds with some of them.

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times for the most urgent calls were DUGGAN approaching 20 minutes, more than FROM PAGE 1 twice the national average for big cit- e mayor charged Larkins with ies, Roach said. lowering emergency response times to “He’s delivered amazing results,” the national average of eight minutes Roach said of Larkins. “You can’t when he appointed Larkins to run the count the human impact that that’s troubled department in February 2014 had in terms of the lives that have — a month after Duggan took oce and been saved.” in the middle of the city’s bankruptcy. “After six months he came in and did Accountability a report and he was still at 12 minutes and he did a report for 15 minutes and Duggan said there’s “nothing per- said it wasn’t his fault,” Duggan told Gil- sonal” about the accountability he’s bert during an on-stage appearance at demanding of his top managers. the Quicken Loans family of companies “Everybody has talent and if you “reunion” at Cobo Center. grow, you make a huge impact and After the weekly Wednesday morn- you’re rewarded,” the mayor said. ing cabinet meeting — which Duggan “And if you don’t want to have that boasted can be “a rigorous aair” — kind of accountability, you need to the mayor demoted Larkins. go work for somebody else.” “I brought him in after the meet- Gilbert related the mayor’s man- ing and I terminated him. I moved agement style to his own experienc- him to someplace else,” Duggan told COURTESY ROCK VENTURES es with replacing longtime employ- Gilbert and his associates. “I said, Detroit Mayor Mike Duggan chatted with Quicken Loans’ Dan Gilbert about leadership and management. ees with “more motivated” and ‘I’m not really interested in listening talented recruits. to whose fault it is. It no longer essentially stressed out in four Detroit. You’re doing a helluva job.’” in service before Duggan took oce “And when that other person you counts how good your excuses are.’ I months and quit,” the mayor said. Sydney Zack, second deputy com- to up to 37 on the road during peak nally recruit replaces (them), it’s put somebody else in the job.” By January 2015, Larkins was back missioner of the Detroit Fire Depart- afternoon and night-time hours. e not like years or even months, it’s like Duggan’s frank discussion about in the top job at the EMS department ment and Larkins’ supervisor, also department went from 160 emergen- within days and a week, you’re like ... personnel matters with Gilbert — and oversaw a recruit graduation was temporarily displaced during cy medical technicians to 215 today what the hell? Why did we wait so which a Crain’s reporter was allowed ceremony that month. Duggan’s management shakeup. and budget authorization to hire 60 long?” Gilbert told Duggan. “Look at into the meeting to watch — showed “ e guy who I had replaced came “My philosophy was you don’t more medics this year, Larkins said. this dierence. It’s not a little dier- the mayor’s demanding side, which in to see me and he said ‘I learned my need the title to do the work,” Zack “I’ve learned so much from (Dug- ence, it’s massive. It’s a lesson I’m al- he acknowledged asks a lot of de- lesson. If you give me another chance, said in an interview. “And behind the gan) about leadership and about ways trying to remind myself.” partment directors. I’ll produce.’ I’ve never done that be- scenes, we just kept doing the work.” how to motivate people and just the Duggan worked in multiple man- Duggan spokesman John Roach fore. I put him back in,” Duggan said. When Larkins returned to the top overall process improvement,” said agement positions from Wayne conrmed Larkins was replaced by During the mid-morning talk with post at EMS, he focused on hiring Larkins, a 22-year veteran of EMS County to the Suburban Mobility Lt. Angela Turner before returning Gilbert, Duggan said he had just come more emergency medical techni- department. Authority for Regional Transporta- about four months later for a “sec- from the weekly 9 a.m. Wednesday cians, buying and equipping more Duggan’s demand for data to ana- tion bus service and the DMC. He ond tour of duty.” cabinet meeting, where Larkins re- rigs, installing a new computer-as- lyze the department’s processes fu- ended the discussion by trying to ported the progress the mayor had sisted dispatch system and changing eled the changes, Zack said. piggyback on Gilbert’s comments Back in the job demanded three years ago. emergency response processes. “When Mayor Duggan came in about personnel decisions. “He reported today he has trans- “It’s not just manpower, it’s not and set an expectation of how long “Once in a while after one week I During the on-stage interview formed that department — they’re just rigs,” Larkins said in an inter- does it take to do X, Y and Z, that’s look the other way and say, ‘What did with Gilbert, Duggan didn’t name making eight minutes,” Duggan said. view. “It was the whole system that when we started picking those times I do?’ but most of the time, most of Turner by name, but disclosed that “And I said to him, ‘Your personal had to be put in place, tweaked or apart,” Zack said. the time, I get it right,” Duggan said. she didn’t last long. growth as a manager has made life restarted from scratch.” As Duggan took the reins at City Chad Livengood: (313) 446-1654 “ e person who was in the job safer for every person in the city of Detroit went from six EMS trucks Hall in January 2014, EMS response Twitter: @ChadLivengood

Department stores that once lined lion-plus surplus this scal year, said Crain's reported had employed some ‘Batman,’ ‘Transformers’ WILLIAMS the city’s downtown in the 1950s left Mayor Deirdre Waterman. 2,000 workers during the Cold War in FROM PAGE 1 between 1962-64, when what was She said she “has no knowledge” the 1970s and 1980s (current employ- e studio’s nancial backers oth- e properties, at 1999 Center- then known as the Pontiac Mall (now of a pending deal for Williams Inter- ment gures are not known, although er than Nelson are John Rakolta Jr., point Parkway and 2100 S. Opdyke Summit Place Mall in Waterford national but said she would wel- following the Cold War the company CEO of Detroit-based Walbridge Al- Road, are owned by entities tied to Township) opened a few miles north- come a company “of that caliber” trimmed sta to around 800). dinger; and the Taubman family. Ari the studio’s ownership group, led by west, said Robert Gibbs, principal of and what would be hundreds of jobs e company was awarded $11.5 Emanuel, brother of Chicago Mayor entrepreneur Linden Nelson. Birmingham-based Gibbs Planning to the city, which does not have a million in defense contracts (plus $1.3 and former White House Chief of Nelson said he has “no idea” Group, who grew up in the city. major defense industry base. million in subcontracts) in FY 2016 Sta Rahm Emanuel, had been an in- about a pending deal, and that the But in recent months, several new An economic development repre- and $10 million in FY 2015, according vestor but his interest was bought out $60 million studio, which opened in projects have sprung to the surface. sentative for Oakland County Execu- to USAspending.gov. In FY 2014, it some time ago, Nelson said last week. early 2011, has no new movies slated Compuware Corp. founder Peter tive L. Brooks Patterson did not re- had a total of $40.8 million in con- Located at the site of a former to be lmed there because “there’s Karmanos Jr. announced last year he spond to requests for comment. tracts, with $33.2 million of that as a General Motors truck plant and of- no money” coming from the state’s was moving three of his Mad Dog Patterson, through a spokesperson, subcontractor. So far in scal 2017, ce complex, the studio is where nixed lm incentive program put in Technology LLC rms into the Riker declined comment. which began Oct. 1, the company has “Oz, the Great and Powerful,” “Bat- place during Gov. Jennifer Gran- Building downtown, and BoonEx Inc., In his State of the County speech received $300,000 in contracts. man vs. Superman: Dawn of Justice” holm’s administration. an Australian technology company, last month, Patterson said two de- e company began in 1955 after and the “Transformers” series were e studio’s fate is not known, nor said earlier this year that it is pursuing fense companies would be bringing Sam Williams, its founder, left Chrys- lmed, among other projects. is that of Williams International’s a purchase of the Phoenix Center. 1,000-plus jobs to the county. One of ler Corp. as an engineer and started e lm incentives started in 2007 current headquarters at 2280 E. West e company was also expected them is Livonia-based AM General, the company using $3,000 in savings. under Granholm as tax credits; they Maple Road at Welch Road. to buy the Ottawa Towers oce which announced plans to move its Williams, who died in 2009 at age became cash rebates in 2011, and irteen miles to the northeast, buildings to the south at the Wood- engineering and product develop- 88, was renowned for his patented Snyder signed legislation in 2015 to the new headquarters would be in a ward Loop, but that plan fell through ment center to Auburn Hills, creat- invention of the small “fanjet en- eliminate them. e budget he city that has struggled for years. because they were not large enough ing 55 jobs. gine” used in the development of signed that year prior to the bill elim- for the company’s needs, according But not all is rosy in the city. Crime several small business jets, Crain’s inating the incentives cut them in Bright spots in Pontiac to a report last month in e Oak- remains a problem. wrote in its obituary for Williams. half, from $50 million to $25 million. land Press. More than 35 percent of its popu- A member of the National Inven- e studio was heavily nanced Pontiac, which has median And Pontiac-based general con- lation still lives in poverty, according tors Hall of Fame and the National with public funds — including $18 household income of $28,505 and tractor George W. Auch Co. plans to to the U.S. Census Bureau. Its unem- Aviation Hall of Fame, Williams was million in bonds backed by the Mich- per capita income of just $15,864, build a new 20,000-square-foot ployment rate is 9.5 percent; state- also honored with awards from igan State Employees Retirement Sys- less than a year ago emerged from headquarters downtown at 65 Uni- wide, it’s 5.4. Presidents Jimmy Carter, Ronald tem — through a range of programs. the oversight of a state emergency versity Drive that is expected to be Reagan and Bill Clinton. e city of Pontiac, nancially in manager after years of nancial mis- complete in a year on nearly 4 acres A pioneering company Crain’s reported that the company distress at the time, also granted tax management and an economic blow of former General Motors land. had $200 million in revenue in 2004. abatements. dealt to it when automakers started e city’s budget has gone from a ere’s no shortage of jobs at Wil- Williams’ son, Gregg, succeeded Kirk Pinho: (313) 446-0412 pulling out. $12 million shortfall to an $11 mil- liams International, which in 1998 him as chairman of the company. Twitter: @kirkpinhoCDB CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 29

ROCK FROM PAGE 3 Rock Connections provides call www.crainsdetroit.com center services for Quicken Loans, Editor-in-Chief Keith E. Crain Meridian Health Plan, Blue Cross Executive Vice President KC Crain Blue Shield of Michigan and compa- Publisher/Editor Ron Fournier, (313) 446-1674 or [email protected] nies a liated with General Motors Group Publisher Mary Kramer, (313) 446-0399 Co., You said. or [email protected] In addition to inbound and out- Managing Editor Michael Lee, (313) 446-1630 or [email protected] bound calling for sales and lead gen- Director, Crain Custom Content Kristin Bull, eration, the company provides cus- (313) 446-1608 or [email protected] tomer support services and Product Manager/Marketing Kim Winkler, (313) 446-6764 or [email protected] appointment-setting, as well as Deputy Product Manager/Digital Carlos Portocarrero email and text message direct mar- (313) 446-6056 or [email protected] keting. About 300 Detroiters work at Membership Director Nancy Hanus, (313) 446-1621 or [email protected] Rock Connections, You said. LARRY PEPLIN News Editor Beth Reeber Valone, (313) 446-5875 “A big chunk of the folks they’ve Rock Connections provides call center services for Quicken Loans, Meridian Health Plan, Blue Cross Blue Shield of Michigan and or [email protected] hired come from Detroit and the companies a¦liated with General Motors Co. Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or [email protected] neighborhoods," Gilbert said March Design and Copy Editor Beth Jachman, (313) 446-0356 1 during a company convention at overseas call centers, You said. gage giant’s in-house title company, former Chase Tower. e company or [email protected] Cobo Center. "You don’t need a col- “Why would we not create this Title Source, You said. then moved into the One Detroit Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] lege degree, maybe not even high right here in Detroit rather than Ne- Meridian has contracted with Center, which Gilbert bought for Newsroom (313) 446-0329, FAX (313) 446-1687, school (diploma) if you’re good braska, India, the Dakotas or wher- Rock Connections to do customer $100 million in 2015. TIP LINE (313) 446-6766 enough and you present well." ever it might be?” Gilbert told Dug- service for Medicaid patients, You In May 2016, Rock Connections REPORTERS You's leadership and the growth gan. said. moved into the building at 1900 Tyler Cli€ord, breaking news. (313) 446-1612 or at Rock Connections were featured e mayor agreed. Meridian shares its headquarters Saint Antoine, which sits across Gra- tcli˜[email protected] at the convention, which Gilbert's “I think the call center has real op- with Quicken Loans inside the for- tiot Avenue from the stalled Wayne Annalise Frank, breaking news. (313) 446-0416 or [email protected] team calls the “Family of Companies portunity,” Duggan said. “Detroiters mer Compuware building at One County jail site that Gilbert is trying Jay Greene, senior reporter Covers health care. reunion.” Gilbert also discussed want to work. We’ve just got to create Campus Martius, which the health to buy to build a $1 billion mixed-use (313) 446-0325 or [email protected] Rock Connections during an on- the opportunity.” care company co-owns with Gilbert. development. Chad Livengood Covers Detroit rising. (313) 446-1654 or [email protected] stage interview of Detroit Mayor Call centers are known for having e company, which has tele- e call center company is now Kurt Nagl Breaking news. (313) 446-0337 or knagl@ Mike Duggan. high turnover in employees. communications licenses in all 50 working with Gilbert's real estate crain.com A Crain's reporter was given ac- Rock Connections has a 26 per- states, also sells automotive warran- management company, Bedrock Kirk Pinho Covers real estate. (313) 446-0412 or [email protected] cess to cover the company meeting. cent attrition rate, according to You. ties for an Illinois company that You LLC, to nd additional square foot- Bill Shea, enterprise editor Covers the business of e company is marketing itself But that includes employees who declined to identify. age in downtown Detroit that “aligns sports. (313) 446-1626 or [email protected] as a call center that can generate rev- leave for another job within Gilbert’s Rock Connections moved down- with our campus,” You said. Lindsay VanHulle, Lansing reporter. (517) 657-2204 or [email protected] enue for clients instead of the “cents family of companies, including town in October 2012 and was origi- Chad Livengood: (313) 446-1654 Dustin Walsh, senior reporter Covers economic issues. on the dollar ... savings” model of Quicken Loans or the online mort- nally housed inside the Qube, the Twitter: @ChadLivengood (313) 446-6042 or [email protected] Sherri Welch, senior reporter Covers nonprošts and philanthropy. (313) 446-1694 or [email protected]

$1.29 million revolving loan fund, the e loan was a turning point for her next generation of women leaders ADVERTISING microloans are high-risk, made to young company. and leads fundraising eorts to fund Sales Inquiries (313) 446-6032; FAX (313) 393-0997 LOANS Director of Sales Lisa Rudy FROM PAGE 3 people who could not get a bank loan, Today, McClary Bros.’ drinking vin- testing of the Detroit Police Depart- Senior Account Manager Katie Sullivan At the end of last year, all but two of she said. egars are served in more than 1,000 ments’ thousands of backlogged rape Advertising Sales Christine Galasso, Gerry Golinske, the companies were operating, with a Applying for a loan is really intimi- locations across 27 states. e De- evidence kits, in addition to its pro- Diane Owen ClassiŽed Sales Manager Angela Schutte, collective 232 employees, according to dating for a lot of entrepreneurs, said troit-based company employs ve grams supporting women entrepre- (313) 446-6051 newly released information from the McClary, who was turned down for a people and has posted between neurs. It’s operating on a $2.2 million ClassiŽed Sales Lynn Calcaterra, (313) 446-6086 foundation. conventional loan through her bank $500,000 and $550,000 each of the past budget this year. Events Manager Kacey Anderson Marketing and Sales Promotions Manager Largely woman-owned startups, before applying for the Michigan two years. It’s set to more than double e results the Michigan Women’s Christina Fabugais-Dimovska with just over half also minori- Women’s Foundation loan. revenue this year as it moves into pri- Foundation is Senior Art Director Sylvia Kolaski ty-owned, the companies went on to “It’s very scary to feel like you’re just vate label products, McClary said. seeing with its Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik leverage an additional $7 million in going to be told no.” Since launching the microloan pro- microloans and Media Services Director Geof Innis funding. It wasn’t until three years after the gram in 2014, the foundation has other entrepre- Media Services Manager Hussein Abdallah Collectively, they reported just un- launch of her business that McClary, made 52 loans. is year, it’s set a tar- neur program- der $9.5 million in revenue for 2016. then a participant in the Goldman get to do 36, Cassin said. ming are compa- CUSTOMER SERVICE Main Number: Call (877) 824-9374 e foundation’s edgling micro- Sachs 10,000 Small Businesses initia- e loans range from $2,500- rable to those of or [email protected] loan program is funded with state mi- tive, felt condent enough to approach $50,000, with an average loan amount another NEI Subscriptions $59 one year, $98 two years. Out of state, croloan fund dollars, Community Re- the Michigan Women’s Foundation $79 one year, $138 for two years. Outside U.S.A., add $48 of $23,800. grantee, Prospe- per year to out-of-state rate for surface mail. Call (313) investment Act funds from local banks for a microloan. While six or seven of the companies rUs Detroit, NEI 446-0450 or (877) 824-9374. and donations from the foundation’s Armed with new knowledge of how loaned money are behind in their pay- Pam Lewis: Director Pamela Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at “Power of 100 Women” group of do- to put together a strong business plan ments, none have gone into default or Potential for Lewis said in an [email protected] nors. It’s helping women who would proposal for funding, she applied and walked away, Cassin said. e founda- growing jobs. email. To Žnd a date a story was published (313) 446-0406 not otherwise have had the funding secured the three-year, $40,000 mi- tion is modifying payment amounts to ProsperUs, an or e-mail [email protected] needed to launch a business. croloan from the foundation in a mat- help those struggling to aord the pay- entrepreneurial training and small Crain’s Detroit Business is published by “We’re breaking through that bar- ter of weeks. ments and oering extra support to business lending program for Detroit Crain Communications Inc. rier, giving access to capital to people Alternative lenders like the Michi- help them expand their businesses. residents, is a collaboration between Chairman Keith E. Crain President Rance Crain who could never have gotten it be- gan Women’s Foundation are lending “Women are a good investment. Global Detroit, Southwest Solutions Treasurer Mary Kay Crain fore,” said President and CEO Caro- to “the human side,” assessing each ey pay their money back,” Cassin and other community groups. Senior Executive Vice President William A. Morrow lyn Cassin. person and their idea, rather than just said. Since 2014, it has made $500,000 in Executive Vice President/Director of Strategic Operations Chris Crain Made through the foundation’s the numbers, McClary said. A big part of what’s helping the microloans to 29 businesses, which Executive Vice President/Director of Corporate companies the foundation has invest- have since created 75 jobs, Lewis said. Operations KC Crain ed in succeed is guidance from its net- ose organizations, with others, Vice President/Production & Manufacturing Dave Kamis INDEX TO COMPANIES work of 400 mentors, most of whom like Kiva Detroit, are among an in- Chief Financial O”cer Bob Recchia Anthony DiPonio These companies have signi cant mention in this week’s Crain’s Detroit Business: are women, Cassin said. creasing number of alternative lend- Chief Information O”cer Mentors work with startup compa- ing models entering the Detroit mar- G.D. Crain Jr. Founder (1885-1973) Ackroyd’s Scottish Bakery 18 Otsi Keta Capital LLC 13 Mrs. G.D. Crain Jr. Chairman (1911-1996) nies and others looking to grow to de- ket, she said. Editorial & Business O”ces Autobooks LLC 5 Quali ed Temporary Services Inc. 18 velop business plans and strategies. Since May 2015, Kiva, through its 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Brixmor Property Group 7 Quicken Loans 3 ey also pick the nalists for the duciary, the Build Institute, has “Dolphin Tank” business plan pitch made loans totaling $146,450 to 24 Community Foundation of St. Clair 10 Rock Connections 3 Cable address: TWX 248-221-5122 AUTNEW DET competition, a gentler version of the individuals. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly Essen Bioscience Inc. 7 Simons-Michelson-Zieve Inc. 18 television show “Shark Tank,” along “We see signicant potential in by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional HistoSonics Inc. 4 Towbook LLC 16 with the winners. programs like these for growing new mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, McGregor Fund 23 United Shore Professional Baseball 22 In addition to its women’s entre- jobs and businesses in our region,” preneurship programs, the Michigan Lewis said. MI 48207-9732. GST # 136760444. Printed in U.S.A. Michigan Women’s Foundation 3 War Water Brewery Inc. 11 Contents copyright 2017 by Crain Communications Inc. All rights Women’s Foundation provides youth Sherri Welch: 313 (446-1694) reserved. Reproduction or use of editorial content in any manner Olympia Development 26 Williams International Co. LLC 1 programming to help develop the Twitter: @SherriWelch without permission is prohibited. 30 CRAIN’S DETROIT BUSINESS // MARCH 13, 2017 THE WEEK ON THE WEB RUMBLINGS MARCH 4-10 Sphinx leaders to receive manufacturing in the new facility, Evans: Gilbert’s Detroit Digits scheduled to open in spring 2018. J Kennedy Center awards jail plan must 'get A numbers-focused look at last New York-based investment com- week’s headlines: panies Certares LP and Vanwall better' Holdings LLC purchased fami- Sphinx Organization Founder ly-owned Guardian Alarm Co., head- Aaron Dworkin and President & usinessman Dan Gilbert’s 1 million quartered in Southeld. e sale of Artistic Director Afa Dworkin are criminal justice complex pro- The amount of DTE Energy Co. and Guardian Alarm, one of the biggest set to receive the Kennedy Center posal has to “get better” if he’s Consumers Energy Co. customers independent security rms in the Award for the Human Spirit for Bgoing to win approval of Wayne a ected by severe winds that country, closed Wednesday. e their work to increase diversity in County ocials to abandon plans to battered the region and downed company did not release terms of the the arts in Detroit and across the nish the long-delayed downtown thousands of power lines. deal. U.S. over the past 20 years. jail project, county executive Warren e award recognizes citizen Evans said in his annual State of the OTHER NEWS artists who present and produce County address. 193 the arts in their communities and Wayne County remains closer to a The number of employees J A Wayne County judge denied deepen the eect of arts and arts deal with Chicago-based Walsh Con- Troy-based Inteva Products LLC will Ambassador Bridge owner Manuel education at a local, state or na- struction to nish the jail on Gratiot lay o at its Adrian plant as a result “Matty” Moroun’s request to dismiss tional level. Avenue than with Gilbert’s Rock Ven- of a program with one of the condemnation proceedings on prop- e Dworkins will be honored tures to move the jail, county court- company’s largest customers, erties he owns in the pathway of con- during the Washington, D.C.- house and juvenile detention center General Motors Co., coming to a struction of the Gordie Howe Inter- based center’s May 8 spring gala, to county-owned land on East Forest close. national Bridge. Moroun’s legal team along with fellow Human Spirit Avenue, Evans said. has a “long history of taking action to Award honorees, former Citigroup “ e county is making good prog- delay” the building process, Judge Chairman and CEO Sanford Weill ress with Walsh toward nishing $1.8 Robert Colombo Jr. said. and his wife, Joan, for their support Sphinx Organization Artistic Director Gratiot. e Rock proposal is going to J e Macomb County Community of performing arts organizations Afa Dworkin and Founder Aaron have to get better and move faster,” million Mental Health Authority is preparing across the U.S. Dworkin. Evans said during an hour-long ad- The price tag of the Warren Valley for $12.4 million in planned Medic- dress to an invitation-only crowd of Golf Course, which cash-strapped aid managed care cuts from the 700 people at the Ford Community & Wayne County plans to sell to a Michigan Department of Health and Duggan targets communications in Detroit Performing Arts Center in Dearborn. residential housing developer. Human Services on April 1 that will Mayor Mike Duggan is getting from his employees. Evans suggested that Gilbert’s touch many aspects of the authority’s ready to add a new communica- “Uh, the leaf pickup is in the proposal to build the county a $420 eld Hills-based company expects to operations. e cuts are part of the tor on his sta who will be fall,” Duggan replied. million jail, county courthouse and add about $215 million in revenue state’s 5-year-old regional funding charged with getting information Duggan said he's trying to juvenile detention center on Forest from the deal with the Prestige Fami- redistribution program. about city services in the hands of “plug a hole” in the city’s commu- Avenue east of I-75 may not be as fast ly of Fine Cars. J Oakland University will spend $51 low-income and elderly residents nication to residents with a new of a solution to the county’s jail needs J General Motors Co. announced it million to overhaul its student center who may not be connected to the aide. as restarting the Gratiot Avenue proj- will lay o 1,100 workers at its Lan- and expand parking on its Rochester internet. “I’m about to hire somebody ect, which has sat idle since the sum- sing Delta Township plant, ending Hills campus. e renovations will be During a March 1 chat with who I think is probably a recog- mer of 2013. the third shift because one of its funded by bonds totaling $124 mil- businessman Dan Gilbert at Cobo nizable name for most of you who products — the GMC Acadia SUV — lion, which the university has also Center, the mayor told a crowd of is going to come in and do that COMPANY NEWS is moving to Spring Hill, Tenn. allocated for other university proj- roughly 300 tech-savvy executives messaging for us,” Duggan said. J Centric TV’s “Queen Boss,” a reali- ects. from Gilbert's family of compa- Gilbert pressed the mayor for J Nine hospitals in Michigan were ty show featuring African-American J After a several-year hiatus, the nies that the city might turn back the individual's name. recognized by Ann Arbor-based Tru- women entrepreneurs, crowned De- Great Lakes chapter of the United the clock in how it communicates “He needs to tell his boss he’s ven Health Analytics in its annual list troiter Nailah Ellis-Brown, founder of States-Mexico Chamber of Com- with residents. leaving before I announce it,” of 100 top hospitals. Truven, which Ellis Island Tropical Tea, its rst win- merce relaunched in Southeast “We’re actually talking about Duggan replied. analyzes data on more than 3,000 ner. She took home $25,000. Michigan. Je Jorge, principal, inter- going back to old-fashioned “So we’re down to 50 percent of hospitals in clinical and operational J A subsidiary of Switzerland-based national growth services practice things like newsletters delivered the population,” Gilbert replied to performance areas, included on its OC Oerlikon started construction on leader and Latin America-U.S. ser- to homes to let you know when Duggan’s gender identier. list Beaumont Hospital in Royal Oak, a new $50 million manufacturing vices desk leader at Baker Tilly Vir- the leaf pickup is,” Duggan said. Duggan spokesman John Providence-Providence Park Hospi- and research facility in Plymouth chow Krause LLP, reintroduced the “When is the leaf pickup?” Gil- Roach said Friday the city was not tal in Southeld, and St. Joseph Mer- Township. New York-based Oerlikon chamber, which advocates for growth bert asked, generating laughter ready to announce the hire. cy hospital in Ann Arbor. Metco (US) Inc. will make alloy pow- and cooperation between businesses J Construction crews at Little Cae- ders for 3-D printing and additive in the U.S. and Mexico. sars Arena in Detroit’s downtown RoboCop ‘Easter egg’ found in rendering area began installing the location’s RoboCop is seemingly alive and ice rink to be used by the Detroit Red well, chilling on the east Detroit riv- Wings. e playing surface will sit erfront. about 40 feet below street level and If you look closely at a conceptual the Detroit Pistons’ basketball court rendering of Franklin Street provid- will be erected over the ice during the ed in the Detroit RiverFront Conser- concurrent seasons. vancy’s east riverfont plan that was J Gary Naeyaert, head of a school unveiled last week, you can see the choice lobbying group founded by ctional cyborg police ocer stand- U.S. Education Secretary Betsy De- ing next to a little girl among a SKIDMORE, OWINGS & MERRILL LLP Vos, resigned after coming under re throng of people. RoboCop appears in a rendering of from Democrats for making an Robert Kraemer, co-founder and Franklin Street as presented in a plan o-color remark about domestic vio- principal of Detroit-based Kraemer for the east riverfront. lence during a Senate committee Design Group PLC, which provided hearing. Naeyaert was the Great historic preservation consulting on ings were done, oftentimes I used to Lakes Education Project’s top lobby- the east riverfront plan, said Easter remember seeing more of that, ist in Lansing. eggs are not unusual to nd in ren- someone being truly an artist and J Quicken Loans’ lending volume derings. e riverfront renderings putting their own touches on it.” rose $17 billion to a record high of were done by Chicago-based Skid- “RoboCop,” the 1987 movie star- $96 billion in 2016, fueled by $7 bil- more, Owings & Merrill LLP. ring Peter Weller, is set in Detroit. lion from the Detroit-based lender’s DETROIT INSTITUTE OF ARTS “It varies in context broadly, any- ere has been an ongoing new Rocket Mortgage product. The Detroit Institute of Arts recently acquired 14 pieces of African American art, thing from an internal joke kind of crowd-funded eort since the Dave J Penske Automotive Group Inc. ac- including this work, “Three Queens,” from Wadsworth Jarrell, founder of Chicago’s thing versus just something fun,” he Bing administration to get a statue quired Jaguar and Land Rover deal- AfriCOBRA artists collective born from the Civil Rights Movement. The works are said. “I know that in the past, back in of the bionic cop erected in the erships in Paramus, N.J. e Bloom- currently on display at the DIA. the days when a lot of hand render- city. Rebuilding Detroit’s Neighborhoods

LMF=AFLGL@=DAN=GFDAF==N=FLGF ?kb]Zr%FZk\a+-%+)*0Zm/3,) i'f' from the campus of the University of Detroit Mercy to celebrate the work and impact This Old House had on Detroit ?^Zmnkbg`ma^ahf^hpg^klZg]mZe^gm_khfMablHe]Ahnl^3 D^obgH

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