JANUARY 23-29, 2017
SPECIAL REPORT: Breathing SMALL BUSINESS Independent life into the bookstores make a Henry Ford go of it in the age of mansion electronic reading, Restoration aims to open Page 8 Fair Lane to visitors, Page 3
Development Talent Packard Ban-the-box policy gains backers Plant owner Lazlo LLC founder eyes spring Christian Birky (le) with Aaron construction Branch. Branch works By Chad Livengood to make [email protected] high-end e Peru-based developer at- T-shirts for tempting to resurrect the former Lazlo, a Packard Plant says it has secured - fashion nancing and tenants to start con- startup that struction this spring on renovating operates out the rst hollowed-out building at the of Ponyride, sprawling factory complex on De- a coworking troit’s near east side. space for e developments are a step for- light ward for an ambitious renovation of manufactur- one of the world’s best-known indus- ing compa- trial eyesores — a grand plan that has nies in drawn both hope and skepticism. Detroit’s Arte Express Detroit LLC, the local Corktown holding company of Peruvian devel- neighbor- oper Fernando Palazuelo, will begin hood. Branch construction of o ce, commercial spent 22 and event space in the 121,000-square- years in state foot former Packard administration prison. building along East Grand Boulevard after the top two oors are cleared of debris and contaminants, according to project manager Kari Smith. Smith expects to the close on - nancing of $17 million-$21 million from unspeci ed lenders for the project within the “next two months.” “A lot of it will be private equity,” Smith said. “And people are often ED BALLOTTS FOR CRAIN’S surprised by that.” e committed tenants for the Advocates say movement helps ex-inmates, companies now-windowless four-story building “We’re doing include Silveri Architects, Environ- it because we By Lindsay VanHulle escalated into a brawl, a gun was in- ment rate ticks lower and it’s becom- mental Consulting & Technology Inc., have a business Crain’s Detroit Business/Bridge Magazine volved, and the man was shot in the leg. ing harder to nd people with expe- Testing Engineers & Consultants, Ster- Jordan Abdullah checked the box. He says now he should have just called rience in the trades. ling Security and the Detroit Training need, and we’re Again and again on job searches after the police. Abdullah served his time for Proponents also see it as a way to Center, a nonpro t job training orga- pursuing it he left prison in 2015, the ex-felon armed assault and nally, after nding remove barriers to work for a popu- nization. marked the space where job applica- an employer who thought beyond the lation of people who often have lim- Construction is expected to last because it’s tions ask about criminal history. box, Abdullah is an ironworkers ap- ited skills or gaps in their work histo- through the end of 2018 with the ten- the right thing Eventually, tired of getting turned prentice helping to build the new Little ries while lowering the chances that ants moving into the space by the to do.” down, Abdullah, 24, said he lied about Caesars Arena. they will return to prison. rst quarter of 2019, Smith said. his criminal record, only to be red e checkbox has long been an In all, 24 states and more than 150 Architect Marco Silveri said he Rebecca Dioso, human when the employer found out. object of fear and dread for people cities and counties have adopted and his wife, Cynthia, plan to move resources vice president for “A lot of people don’t really want to like Abdullah. Now, a new e ort to ban-the-box policies, according to their three-person architectural rm Alta Equipment Co, on why risk hiring someone like me,” Abdul- get rid of it is gathering steam. e the National Employment Law Project, from Ferndale to the Packard Plant to Alta participates in the lah said. “ban the box” movement advocates a New York-based advocacy organiza- get closer to their Midtown clientele. ban-the-box program. He said he saw a man beating a child that ex-o enders can be a valuable tion that has studied the issue. e SEE PACKARD, PAGE 15 in 2013. He intervened. e situation source of labor as the unemploy- SEE CHECKBOX, PAGE 16
© Entire contents copyright 2017 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 33 No 4 $2 a copy. $59 a year. SPECIAL REPORT: LAW Potentially vast regulatory changes under Trump mean a wait-and-see
NEWSPAPER approach for many businesses, Page 10 2 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017
INSIDE MICHIGAN BRIEFS CALENDAR 12 CLASSIFIED ADS 15 Snyder pushes to amp up He called the Flint emergency a ship for students because no better DEALS & DETAILS 13 “sad chapter in the history of our options are available. investments in state KEITH CRAIN 6 infrastructure state,” pledging to continue working More than half of the 38 schools to end the lead emergency. are in Detroit. e others are in Ben- OPINION 6 Gov. Rick Snyder called for major A year ago, Snyder used his State ton Harbor, Bridgeport, East Detroit, PEOPLE 14 new state investment in maintaining of the State address to apologize for Kalamazoo, Pontiac, River Rouge sewers, water systems and other the crisis in Flint and ask lawmakers and Saginaw. RUMBLINGS 19 public works in his State of the State for millions of dollars in state aid. He e law allows for state-ordered WEEK ON THE WEB 19 address, citing failures including the also said he would release two years’ school closures if chronically under- Flint water crisis and the Fraser sink- worth of emails related to Flint, performing schools have not im- COMPANY INDEX: hole. which was an unusual step consid- proved despite receiving other forms SEE PAGE 18 e call came during a speech ering the governor’s o ce is exempt of intervention. e closure option that heartily touted numerous suc- from state open records laws. had gone unused. pating ve partner systems and cesses — declining unemployment, AL GOLDIS/ASSOCIATED PRESS A package of bills that would have Also Friday, 79 “priority” schools 1,200 doctors, including 400 primary more private-sector job creation, “We’re at risk in every corner of opened up the governor’s o ce and were freed from state intervention — care and 800 specialty physicians, large companies like Google and Am- Michigan” for failed infrastructure, Gov. the Legislature to the Michigan Free- the rst time more schools were re- are located. azon setting up shop in Detroit and Rick Snyder said during his State of dom of Information Act failed to get leased than were agged for inter- e other ACOs newly approved its suburbs. Snyder also pushed a the State address. “We know this is a out of the legislative term that ended vention. to operate in Michigan are: Aledade goal to boost the state’s population huge challenge.” in December. Democratic lawmak- Independent ACO LLC; McLaren High above 10 million by the 2020 census. ers continue to call for increased 6 new ACOs approved Performance Network LLC; Trillium He said the rst step toward im- group was created in response to the transparency as the Flint crisis heads Health LLC; UOP ACO LLC and OSF proving the condition of Michigan’s lead-poisoning crisis in Flint’s drink- into another year. Armant Health Partners in Ka- Healthcare System, which also oper- roads, bridges and drinking water is ing water. lamazoo has been approved as one ates in Illinois. to keep track of the state’s infrastruc- e crisis in Flint — and the real State tags 38 public of six new Medicare accountable ture systems, and he proposed creat- infrastructure challenges across the schools for closure care organizations in Michigan and ing a central database that can act as state that it raised — will remain a pri- will join 15 other ACOs already tak- CORRECTION a clearinghouse to help state and lo- ority in the coming year. More recent- For the rst time, the state of ing care of more than 300,000 se- Flagstar Bancorp Inc. was ranked cal governments and utilities better ly, a sinkhole opened up in Fraser due Michigan is planning to close public niors. incorrectly on Crain's list of largest plan for repairs. to a leaking underground sewer line. schools for academic reasons, e A rmant’s new contracting enti- Michigan banks published Dec. 26. e database, known as an asset “We’re at risk in every corner of Associated Press reported. ty, called The Federation ACO, will be Flagstar should have been listed at management system, was among Michigan” for failed infrastructure, e Michigan School Reform Oce assigned 71,000 traditional Medicare No. 7 with $8,772,782,000 in deposits the recommendations put forth last Snyder said during the speech, de- said Friday 38 schools are failing and patients over the next several inside the market as of June 30, 2016. month in a report by a task force ap- livered to a joint session of the Legis- subject to closure. Some schools months in the ve markets — Ka- A corrected version of the list is at pointed by Snyder to identify Michi- lature at the Capitol. “We know this may not close if state o cials decide lamazoo, Saginaw, Jackson, Lansing crainsdetroit.com/section/data_ gan's infrastructure priorities. e is a huge challenge.” it would pose an unreasonable hard- and St. Joseph — in which its partici- lists.
THE PISTONS ARE HEADED BACK TO DETROIT Come hear from the man that made it happen – DETROIT PISTONS OWNER TOM GORES
12:30 – 3 p.m. Sound Board – MotorCity Casino Hotel FEB.28 Register today at Crainsdetroit.com/events
Andy Appleby, United Shore Professional Baseball League Ronna Romney McDaniel, Michigan Republican Party This high-powered Mona Hanna-Attisha, Mina Sooch, Gemphire Therapeutics Inc. networking event will MSU-Hurley Children’s Hospital Pediatric Public Health Initiative Kirk Steudle, Michigan Department of Transportation also honor all top Barbara McQuade, U.S. Attorney, Eastern District of Michigan newsmakers of 2016: Sam Valenti III, V5 Partners LLC Joseph Mullany, formerly of Detroit Medical Center M. Roy Wilson, Wayne State University
SPONSORED BY
Contact Lisa Rudy for sponsorship opportunities: (313) 446-6032, [email protected] CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 3
Real estate Nonprofits Auction prices up as values climb
By Kirk Pinho [email protected] Fewer things are more emblemat- ic of Detroit’s worst days than the $500 house. While those properties are still around, they are becoming rarer purchases as average sale prices at Wayne County tax-foreclosure auc- tions have risen more than 50 per- cent since 2011 and the number of properties auctioned has decreased by almost 65 percent since the peak in 2014, a sign of increasing interest in the city. e decline in $500 property sales can also be attributed to increased interest in the city’s real estate, plus other administrative policies insti- tuted by the Wayne County Treasur- HENRY FORD ESTATE INC. er’s O ce, according to some of the The restored sun porch room at Fair Lane, recreated from a 1919 photo (inset) taken when Henry and Clara Ford lived there. top property buyers at the 2016 tax-foreclosure auction. Some of those include requiring a $2,500 refundable deposit for buyers The feeling of Fair Lane of one property and $10,000 for those who are buying multiple prop- Once it’s renovated, visitors to get chance to experience everyday life at historic mansion erties, said Stevey Hagerman, re- gional manager for Brick Home Man- By Sherri Welch the crumbling retaining wall along eling, tarnished sconces, original agement’s east-side Detroit o ce, a [email protected] the Rouge River, leaking roofs and chandeliers found in the attic and subsidiary of which purchased the Imagine sitting on the wicker bowing walls before moving to resto- oak oors darkened from years of most properties (288) at the 2016 chairs in the sun porch room at Hen- ration of leaded glass windows, rich wax and wear. tax-foreclosure auction. He also said ry and Clara Ford’s Dearborn man- fabric wall coverings and antique But Henry Ford Estate hopes to the treasurer’s auction has made the sion, listening to music from 1919 as door hinges. reopen Fair Lane to the public for at current year’s taxes due at the time you look out at the Rouge River, ree years into the project, the least one day a week this year, de- of the purchase. hanging out in the hunting-themed estate is working to bring the every- pending on the progress of renova- “ e market and the prices have eld room where Ford gathered with day experiences the estate’s resi- tions, to give visitors already at- gone up,” he said. “ ere has been friends like omas Edison, or dents once enjoyed to life for visitors. tempting to peek in the windows a more competition on the good, qual- shooting pool in the billiards room. When further along, the mansion glimpse of what’s happening inside. ity, sturdy, brick three-bed bungalow ese experiences are what Henry will o er a “no velvet ropes tour,” And beginning this month, it will that from all appearances on the out- Ford Estate Inc., the historic Fair Lane CEO Kathleen Mullins said, a novel open to small groups of registered side is good shape. I think a lot of in- home’s nonpro t operator, is going approach for an historic estate made visitors coming to get an up-close vestors or speculators don’t go after for as it continues to restore the possible through the recreation of view of the work and learn from the those (lower-priced homes) any- Fords’ mansion — with the eventual many of the original furnishings. experts about cleaning and restoring more; they might not see the value.” aim of reopening the home as a tour- A larger tour of the rst oor of the masonry, reglazing antique, leaded Brick Home Management subsid- ist attraction. 57-room home is still several years glass windows and re nishing oor- HENRY FORD ESTATE INC. iary Motown Rentals LLC spent $1.05 e estate had been shuttered for out, as work to peel back nearly 70 ing using a process to strip away the Austin Eighmey of Historic Surfaces million on its 288 properties, all in about three years when the nonprof- years continues on everything from grime rather than sanding away the LLC works to remove decades of paint SEE AUCTION , PAGE 18 it took ownership and set to xing the doorknobs to painted wood pan- SEE FAIRLANE, PAGE 18 from woodwork in the music room.
MUST READS Manufacturing jobs are no salvation, OF THE WEEK but manufacturing might be How Crain’s can help you win Manufacturing plants will not But there’s more to manufactur- Our journalism will remain ercely independent and cover the business com- save our country’s economy. Manu- ing than assembly — a fact lost in munity without fear or favor, but news isn’t all Crain’s can do to help you suc- facturing still might. today’s discourse about “bringing ceed, Page 7 Donald Trump has been sworn our jobs back.” Manufacturing is re- in as the 45th president of the Unit- search, design, engineering, supply Hydroplane races in search of new sponsor ed States. the business- chain management, and much, Plan is to split the races into two programs, seek new title sponsor a er UAW/ man-turned-politician has continu- much more. GM Center ends deal, Page 19 ally touted recent announcements DUSTIN WALSH at whole chain is what deliv- by Detroit’s automakers about cre- [email protected] ered innovation. But the same inno- ating jobs, or “bringing jobs back” Twitter: @DustinPWalsh vation also has meant fewer workers to the U.S. were needed to assemble things. As We could take a ne-toothed Manufacturing holds a special men and women learned to make comb to assertions about whether place in the imagination of this na- machines smarter and faster, pro- the decisions by General Motors, Ford tion and its politicians. Sparks, the ductivity grew higher and workers and FCA were, in fact, in uenced by smell of hot oil and blue-shirted grew fewer. the president-elect or were made men in steel-toed boots brought this Technology allowed automakers long before Trump was elected. But country power — politically, nan- to use more suppliers, creating it’s meaningless. cially and militarily. SEE JOBS , PAGE 16 4 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017
“Everstream’s fiber Rosen on Grand Bargain, Detroit’s network is built from future and Kwame Kilpatrick the ground up. It has Gerald Rosen, one of the key archi- DIA website and I saw that the DIA tects of Detroit’s so-called Grand Bar- attracted over 600,000 people a year state-of-the-art gain deal in its historic bankruptcy to Midtown. I thought, “Gee whiz, liq- case, is retiring for good from his po- uidating the DIA would be like drop- equipment designed sition as chief judge of the U.S. District ping a hydrogen bomb in Midtown.” Court for the Eastern District of Michi- It would suck the life out of it. So there with reliability in mind gan at the end of the month and start- was that part of it. ing a downtown Detroit o ce of Judi- What would be the theme song for because we know that’s cial Arbitration and Mediation Services Detroit’s bankruptcy case? Feb. 1. “Don’t Stop inking About To- what our customers e mediator in Detroit’s bank- morrow.” ruptcy case, Rosen is starting the Favorite lawyer joke? want the most from us: JAMS o ce with Steven Rhodes, who I don’t do lawyer jokes. I like law- oversaw the case as the federal judge yers. I respect them. In the bankrupt- speed and reliability.” and since retired from the bench, and cy case, we had some of the very, very Clarence “Rocky” Pozza Jr., partner at best lawyers in the world. ey Mikail Shomade, VP, Engineering Detroit-based Miller, Caneld, Paddock “I’ll never forget worked hard. ey were open-mind- and Stone PLC. Since they announced when I was reading ed. It was a crisis situation that we the new business venture in October, Kevyn Orr’s proposal were all in. ey realized it, and they former Michigan Supreme Court Jus- for creditors, coming were willing to open their eyes to cre- tice Mary Beth Kelly, who joined Bod- ative, innovative ideas, not just the man PLC in Detroit as partner and vice to the asset section Grand Bargain. chair of the rm’s litigation and alter- and realizing that We might be having some new City native dispute resolution practice there really weren’t Council members a year from now. group in 2015, also has decided to any assets other than What would you suggest to the new join the JAMS o ce. ones potentially coming on board? One of the key points in the bank- the art.” Gerald Rosen I’m not in politics. I’m not a politi- ruptcy process was the Grand Bar- cal person in the sense of being in- gain, which raised $816 million to pay across the rope line on the nancial volved in the political maw, but my for pensions and spin the Detroit In- creditors’ side were really rst-im- observation is that Mayor (Mike) stitute of Arts and its collection to an pression issues. Duggan is working very positively independent nonpro t, out of reach But overwhelmingly, the most with President (Brenda) Jones and of creditors. challenging issue for me was an as- other members of the council in a Last week, Rosen, who also han- setless bankruptcy — other than the way that has not been done by any dled key aspects of the Kwame Kilpat- art. I’ll never forget when I was read- mayor in years and years. rick saga, spoke with reporter Kirk ing Kevyn Orr’s proposal for credi- At the same time, my word of cau- Pinho in his seventh- oor chambers tors, coming to the asset section and tion is that we have to be careful to on Fort Street downtown. realizing that there really weren’t any continue to provide the fertile ground What’s your sense of how well De- assets other than the art. that Detroit is for investment for peo- troit has been adhering to the plan of That was a devastating report. ple coming in. Part of that is not plac- adjustments? It was devastating. Kevyn, he had ing onerous regulation on people We are hitting the marks, exceed- just hired Christie’s to appraise the coming in, with arti cial employ- ing them in most areas — certainly art, so he was clearly serious about it. ment requirements. I understand the revenue, I think the last report I saw I remember thinking, “What the hell social need for that and I applaud it. I was about 2 percent above the pro- have I gotten myself into?” My job is think if Detroit is going to continue jected revenue. On budget. Expendi- to get deals. To get deals, you have to the comeback that we are on, the tures are below — not much — but have revenue or assets that can be neighborhoods have to be part of it slightly below what was projected. monetized into revenue, and the cup- and the African-American popula- ose are two important things. board was pretty much bare. ere tion has to be part of it. But you can't Certainly, investment and growth didn’t seem to be much to work with disincentivize people coming in. in the downtown area, certainly Mid- for deals, other than the art. You think that’s been done recently? town, and with the Ilitch develop- ere were other aspects to the I’m a little bit concerned about the ment coming to fruition, the Red DIA that I was concerned about. is community bene ts ordinance. e Wings, Pistons, some of the entertain- was a time when Detroit was canni- one that was passed was certainly ment venues becoming a reality now, balizing its heritage to mortgage its better than the alternative, but I’m I expect the area between Midtown future, consistently over the decades. still leery of it because it’s creating en- Faster Fiber. and downtown will become very vi- In terms of Detroit’s future, it didn’t try barriers. brant over the next two-three years. make sense to me to do that again, What was the most surprising indi- What was the most dicult part of but I was realistic. vidual (Kwame Kilpatrick text) mes- Better Business. that case aside from the Grand Bargain? Time was Detroit’s enemy. e sage you saw? Before you get to the Grand Bar- only way to get through the bankrupt- A lot of that is sealed. I would just gain, you have to go back and see cy in any sort of expeditious way was refer to it generically by saying there what the case was when we found it, through consensual agreements, and was very little public business con- which was an assetless bankruptcy. the only asset that could be mone- ducted by the mayor and his associ- Small business to large business. at was the most di cult part, for tized was the art. So that’s basically ates. I’m sure they conducted busi- Networking to high-speed internet. me. Certainly, there were a lot of what led to the idea of the Grand Bar- ness by communication means other rst-impression legal issues. Certain- gain — trying to gure out a way to than texts, but these were city-provid- Everstream is your Business Fiber Network. ly there were issues that could have monetize the art without liquidating ed pagers. I assume that the city pro- gone all the way up to the Supreme it, and giving the proceeds to the retir- vided the pagers for people to be able Court, whether it was the collision be- ees. Neat trick. to conduct city business on them, tween the federal bankruptcy code I’ll never forget sitting in this little and I saw very little. I learned a lot of and the federal constitutional su- condo (in Florida) thinking, “What new text language that I hadn’t premacy clause and the Michigan the hell have I gotten myself into? Is known before, and I appreciate ur- Constitution’s provisions to protect my legacy going to be that we liqui- bandictionary.com. pensions. But there were also a lot of dated one of the great art collections Twenty-four hours le in the Obama other really important issues: e in the world for sheikhs in Dubai and administration. It’s pardon and com- tenor of the security instruments, of oligarchs in Russia?” I wasn’t very ex- mutation time. Does the former mayor the nance instruments, the level and cited about that. deserve one? tenor of their security, were all major ere was another aspect too. One No. Absolutely not. I have to be a everstream.net issues in the bankruptcy, whether of the few nascently growing areas in little cautious, but I presided over that they could be crammed down all Detroit was Midtown. I went on the grand jury for 2 1/2 years. •
Did you know? Over 90% of consumers avoid working with companies using outdated technology. Move forward with innovative technology from Comcast Business.
Whether it's accessing cloud services, connecting offices from multiple locations or using additional devices and applications, the demands on your bandwidth will only increase with the growth of your business. Comcast's network will deliver reliable and scalable services for businesses of any size, providing an integrated and unparalleled product experience to our customers.
Is your business ready for the future?
COMCAST B4BBUILT FOR BUSINESS BUSINESS'"
COMCASTBUSINESS.COM
Source: http://www.smallbizdaily.com/outdated-technology-can-cost-business/. Restrictions apply. Not available in all areas. Call for details.© Comcast 2016. All rights reserved. 6 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017
OPINION Fouts drama needs resolution arren is the third-largest city in Michigan, and its mayor needs to be somebody with whom busi- ness can do business. Jim Fouts isn’t that guy. WFouts, 74, rst elected in 2007 after 26 years on the City Council, denies that it’s his voice on two sets of recordings of a man disparaging African-Americans, women, and disabled people. While he gets a presumption of innocence in legal quarters, the public square is less forgiving. “It is his voice,” said Macomb County Executive Mark Hack- el, a longtime critic of Fouts who released the rst recording. “ at’s the way this person thinks.” Hackel has denied being the Warren is the source of a second recording, re- third-largest leased last week by the news site Does a slap-in-your-face Motor City Muckraker. city in On that tape, a voice alleged to Michigan, and be Fouts’ is heard comparing Afri- management style work? its mayor can-Americans to chimpanzees Proud. Loud. Pugnacious. where good people, smart people want and calling older women hags who He is Donald Trump, our new pres- to participate. Consultants call this en- needs to be ident. gagement, which really is nothing more are “mean, hateful, dried up.” somebody is fellow from the patrician class than the idea that people like what they It was a last straw for three other spoke the language of the working do and want to come to work every day. with whom political leaders who joined Hack- class and to the surprise of the “ex- Most importantly, engagement re- business can el at the Detroit Economic Club’s perts” won the election. He projected quires leaders with strong moral char- do business. annual “Big Four” lunch. “I think the aura of a winner, and he delivered. acter: men and women who know he’s probably ended his career,” e challenge now: How will he OTHER VOICES themselves and are centered profes- govern? Elections can be won by being John Baldoni sionally and personally. said Oakland County Executive L. negative. Good governance requires One value that the best leaders Baldoni, based in Ann Arbor, is an Brooks Patterson. people to come together. practice is humility. While such a top- No stranger to intemperate remarks, Brooks tried to joke Mr. Trump’s style is very much a executive coach and author. ic is seldom taught in business that Fouts’ proctologist called the mayor last week to say “they slap in the face to people in my busi- decision-making comes from CEO Je schools, humble leaders are people found his head.” ness, the eld of human development. Immelt, who told Joe Nocera, then of who know themselves, warts and all. We preach leadership that embraces e New York Times, “When you run ey are con dent in their own skins is is no laughing matter. di erence, one that is inclusive as well General Electric, there are 7 to 12 and unafraid to own up to mistakes. Detroit Mayor Mike Duggan said if Fouts truly believes the as consensual. times a year when you have to say, ey seek counsel from people they tapes are fabricated, he should pursue felony charges. Other- Were we wrong about what people ‘You’re doing it my way.’” Immelt add- respect, and they demand their direct wise, “he needs to resign because he’s lying.” expect in a leader? Did we fail to un- ed that if he made too many decisions, reports speak up. Wayne County Executive Warren Evans said Fouts’ denials derstand Mr. Trump? Should we teach or too few, he would not be doing his Trump in person may not be the are not convincing. “His statements do not represent every- something new? e answer is yes, job properly. man he is in public. We are told he is a yes, and hell no! As Admiral James Stockdale, who good listener and respects other points body, and so there’s a hypocrisy, I think, in sitting back not Respect for others is fundamental studied Stoic philosophy after spend- of view. If so, hurrah, hurrah, our coun- asserting more vigorously that he didn’t do it, if in fact, he to sound leadership. A leader who ing seven years as a POW in the Hanoi try will be better for such leadership. didn’t.” puts himself rst by putting down oth- Hilton, wrote “Leadership must be But if he practices the belittling be- Fouts must decide whether to ght harder, or resign, which ers is no leader. based upon good will. … What we haviors we have seen to date, then his he hadn’t done as of Crain’s Friday deadline. If the mayor hap- Make no mistake. Leaders do not need for leaders are men of the heart administration will be in for a rocky make a positive di erence by standing who are so helpful that they, in e ect, tenure. All of his voters will be disap- pens to quit before you read this editorial, it still won’t be soon back and watching. ey act with re- do away with the need of their jobs." pointed by the failures of the man in enough for the “Big Four” and the good people they represent. solve. One of my favorite quotes on Such leadership fosters a culture which they invested high hopes. I am waiting for the orange barrels It is that time of year again. No, having their vehicles swallowed — per gallon and higher fees add up to I’ve started to give. It’s kind of like not auto show. Nor skiing. It’s pot- or just blowing a tire. more than $1 billion to be spent to x a United Way campaign for trans- hole season. But there might be hope. More roads and bridges, including dan- portation. We give a little every week. Recently, Fraser was attacked by a than a year ago, in what seemed to gerous potholes. So where are the orange barrels? giant sinkhole. It’s the only thing that all of us as the dark of night, state Like most loyal Michiganders, I As much as I hate those barrels, im- rivals the holes in our roads, trying to lawmakers passed a promising solu- am willing to contribute my share to patient person that I am, I want to devour our automobiles. tion for this ongoing nightmare. this noble cause. I am sure that my see some action for my gas tax. at When pavement freezes, then is year, as a New Year’s gift from friends in the road-building busi- means the orange barrels should thaws, the potholes appear. And in KEITH CRAIN Lansing, we all started paying higher ness are going to become richer, but start appearing — not next month or the spring, just about the time of Editor-in-chief taxes at the gas pump, a little over 7 that’s OK. Unfortunately, wheel this summer, but now. Make my baseball’s spring training, crews ap- cents a gallon more for gas and 15 shops could see their business drop driving miserable, starting now. pear with asphalt patches to try and is is nothing new. We have lived cents for diesel fuel. It was the rst by 90 percent as drivers no longer It’s worth it. Let’s get our Michigan protect us until winter arrives and with potholes for years. Drivers are increase in 20 years. With higher ve- need to get wheels and rims repaired roads xed. Now. the cycle starts all over. challenged to maneuver around hicle registration fees, the pennies and replaced. Forever. CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 7 How Crain’s helps you win Last week, I introduced myself to es. We’ve long been on the forefront of Business will launch a membership the Crain’s Detroit Business communi- fully integrated ad campaigns: print program, featuring full access to our To be clear, ty and promised to use this space to and digital ads, and events. Now we journalism plus a suite of business Crain’s reporters share stories about the city’s rise, as produce content marketing, also products and services that we’ll devel- will cover the well as warn when Detroit falls back called “custom content,” selling prod- op with your input. Membership of- on bad habits. “And I’ll explain how ucts and burnishing brands via native ferings will change and grow as your business Crain’s can help you tell your stories — advertising, sponsored content, ad- businesses grow and change. community how we will help you succeed.” vertorials, and branded content. Here’s the thing: Our aim at Crain’s at last sentence might make you RON FOURNIER You can do some of this work in- isn’t simply to nd new readers. We with no fear or wonder: “How can Crain’s help me EDITOR, PUBLISHER house or hire an agency, but storytell- want new partners. favor. Their succeed? How does a newsroom help [email protected] ing is in our DNA. Our head of custom stories might me win at business?” Twitter: @ron_fournier content is Kristin Bull, a brilliant editor Ron Fournier is editor and publisher of After all, even the best business re- and writer who has worked for 22 Crain’s Detroit Business. Catch his make you porter doesn’t know your business like Independent of the newsroom, years inside newsrooms. Now, she take on business news at 6:10 a.m. uncomfortable, you do. Crain’s is expanding a suite of business works directly for you. Mondays on the Paul W. Smith show but the truth e answer requires you to under- services that help you tell your stories Finally, we want you to join our en- on WJR AM 760. stand that Crain’s is more than a highly and deliver them to targeted audienc- terprise. Later this year, Crain’s Detroit oen hurts. regarded publication about the city’s business community. Crain’s is a full-service communications compa- ny that is creating new ways to solve your business problems — from inside and, increasingly, far outside our ercely independent newsroom. At Crain’s, we cover the people with whom we do business. Our reporters speak truth to power. Our business units — marketing, advertising, native advertising and other forms of custom content — speak truth with power. How does all this help you? First, the Crain’s newsroom has just been restructured to produce more news that my predecessor, Mary Kramer, calls “business intelligence” — information and insights that help you nd new business and reshape yours. is is our bread and butter, in- formation you can’t get anywhere else, and we’re doubling down on it. Crain’s beat reporters will no longer be responsible for more than one topic Have a good day, for a long time to come. area, a practice that spread our cover- age thin. Our top reporters will focus In the discipline of wealth management, you might ask if Greenleaf Trust is good on a single beat and nail it — develop- ing sources, mining those sources for at everything. If that means everything you’ve worked for, everything you’ve scoops and insights, and writing sto- ries that provoke new thinking and ac- saved and invested for, and everything you hope your wealth can make tion. possible from this generation forward, the answer is yes, yes and yes. In short, they’ll go deeper: Jay Greene on health care, Kirk Pinho on With our client centric focus, goals-driven investment approach, and real estate, Bill Shea on sports busi- ness, Lindsay VanHulle on govern- the stability enabled by nearly $9B in assets, we achieve remarkably ment, Sherri Welch on nonpro ts and good things for our clients day after day after day. Dustin Walsh on economic issues. Our latest addition, Chad Livengood, will Please call us to learn more. connect the dots on a beat we call De- troit Rising. I’ve never worked with a better batch of reporters. While these veterans dig deeper, we’ve hired three young but experi- enced journalists to broaden our cov- erage. Tyler Cli ord, Annalise Frank and Kurt Nagl will work with News Ed- itor Beth Valone on our breaking news desk to bring you the latest develop- ments from news outlets throughout Michigan, as well as from our own sources. If you’ve got news that a beat reporter can’t address, this team will crank it out. Beth and her Big ree will make Crain’s a one-stop shop for business coverage. To be clear, Crain’s reporters will cover the business community with no fear or favor. eir stories might make you uncomfortable, even angry, but the truth often hurts. ey will be fair and accurate and smart, rededi- cated to the best practices of journal- 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 ism just as many other news outlets are deserting them. So please pitch us your stories. 8 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 Experts: Small biz SPECIAL REPORT: SMALL BUSINESS should start 2017’s tax planning now
By Leslie D. Green Special to Crain's Detroit Business Little can be done to help small business owners get their nances straight in time for tax lings this April. However, if they haven’t led taxes yet, they can still try to maximize bene ts from the current tax rate. “Given the results of the election, it is likely tax reform will be enacted,” said David Rehrauer, managing direc- tor of Tax for KPMG in Detroit. “Initial information suggests the tax rate will decrease and some other deductions/ incentives may be eliminated. Compa- nies should consider accelerating de- ductions into 2016 and/or deferring revenue recognition to future years.” Startups, he said, should consider if they are eligible to claim a research and experimentation credit. A provi- sion in the PATH Act allows qualifying companies to take up to $250,000 in credits that o set payroll taxes. Moving forward though, Lisa Car- roll, audit partner at KPMG Private Mar- kets Group in Detroit, said there are three things small business owners need to do to begin 2017 on the right foot. First, understand what your organi- zation’s cash ow needs will be in three to six months and in one to three years. is includes knowing your expenses and potential income in advance. ose looking to make acquisitions or increase hiring need to determine whether they will require additional outside funding or funders. “You need to determine if there are going to be times when you’re in a low- cash situation,” Carroll said. For exam- ple, if you’re busy buying products to increase inventory and hoping to grow your business, but there is going to be a longer return time before getting paid by customers, look at the terms for A good read your customers. “Do you need to have customers prepay?” Second, examine how the Decem- ber interest rate increase and possible additional rate increases in 2017 will on books a ect your organization. Janet Webster Jones is “Small businesses should check to owner of Source see if they have adjustable lines of Booksellers in Detroit. credit that may increase, so they aren’t surprised by the impact,” Carroll said. “Do they have credit cards where they IFOMA STUBBS may pay higher interest rates or term loans with xed interest rates that need dents. at’s about one bookstore 1,775 in 2016 from about 1,400 in to be renegotiated?” Local independent bookstore owners nd for every 30,000 people. 2009, and physical book sales have ird, review signi cant contracts or success with author events, personal touch However, the Michigan Retailers been steadily growing since 2012. policies created over the last year. Association’s Tom Scott points to Late last fall, the organization was “Do your insurance policies still By Leslie D. Green good plan of how you’re going to the nationwide resurgence of in- reporting 2016 sales were 5 per- cover what you need to have covered? Special to Crain's Detroit Business compete,” said Susan Murphy. She dependent bookstores as an indi- cent higher than 2015. Additional inventory and space need e advent of electronic books, opened Pages Bookshop on the cator of what’s to come. “ ey’re “Nationally in the U.S., new to be protected in case of adverse inci- surge in Amazon sales and closure city’s west side in May 2015, she coming back,” said the group's vice stores are opening, established dents,” she said. “Understand what of big-box bookstores have had said, to the appreciation of nearby president of communications and stores are nding new owners and your policies cover and the deduct- many assuming independent residents who were thrilled not to marketing. “ e number of inde- a new generation is coming into ibles.” bookshops will crash and burn, have to shop online. pendent bookstores climbed last the independent business as both Of course, throughout the year, you never to rise again. Michigan ranked 42nd in terms year in the U.S. ey’re such great owner/managers and frontline should keep thorough accounting re- Yet, in Detroit, indie bookstore of the number of bookstores per community assets. ey’re com- booksellers,” the ABA said. “All of cords and routinely speak with a tax Source Booksellers has been grow- capita, according to a 2012 Pub- ing.” this is a result of the fact that indie accountant to identify opportunities to ing since opening some 12 years lishers Weekly study, the most re- Oren Teicher, CEO of the Ameri- booksellers remain a resilient and increase deductions and understand ago, and another opened just re- cent available. e estimated 327 can Booksellers Association, said entrepreneurial group.” how changes will impact your busi- cently. bookstores — 24 chain, 150 inde- the number of member indepen- Cristina Benton, director of ness. “Opening a bookstore is a risky pendent and 153 big-box stores — dent bookstores across the country Market and Industry Analysis at business. You have to have a pretty serve 9.9 million Michigan resi- increased about 26 percent, to SEE BOOKS,PAGE 9 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 9
SPECIAL REPORT: SMALL BUSINESS BOOKS FROM PAGE 8 Anderson Economic Group LLC in East Lansing, said cities with nu- merous bookstores often have strong neighborhoods or commer- cial centers with considerable foot tra c. “ ere are places that are coming back — downtown, Midtown — that are growing people and de nitely more retailers and places to eat and drink. at’s where more book- stores could do well because they could take advantage of the foot selling their books. I di erentiate. I tra c in those areas.” don’t feel I compete against Ama- With retailers like Amazon, a suc- zon. I can’t compete on price. I stress cessful bookstore would need to of- customer services, special orders, fer more than books, such as a cof- gift wrapping. I’m trying to do that fee shop; frequent book signings; a personal stu people don’t get on- specialty store to cater to certain line.” crowds, such as comic books, local e work isn’t easy, Murphy ac- music, decor or sports, explained knowledged. “But it’s paying o for Warren Anderson, assistant profes- me. I met all my targets. I’ve grown sor of economics at the University of the second year. I do get customers SHAWN LEE STUDIOS Michigan-Dearborn. from the northeast and west sub- Susan Murphy, owner of Pages Bookshop in Detroit, said she believes there’s a bene t in having a bookstore to bring the In addition to being two of just a urbs, and that’s going to be import- community together. few indie bookshops selling new ant for me going forward.” books in Detroit, Source Booksell- store also holds frequent author Like Webster Jones, Murphy the Grandmont Rosedale Develop- Helping to bring people in the store, ers in Midtown and Pages Book- events, and mind, body and spirit wanted to build a community. She ment Corp., and self- nanced the Pages regularly holds author events shop in north Rosedale Park seem exercise classes each Saturday. knew she wanted to be in a neigh- venture. and programs for children. “It’s not a to have the right locations and plans e 79-year-old said she has borhood and her marketing experi- “My belief is there’s a bene t in matter of just going and buying a when it comes to creating unique been able to operate Source be- ence told her she needed to locate having a community bookstore to book,” she said. “It’s the whole experi- experiences for their customers. cause she has a pension that pays near a density of people with high- bring the community together. Peo- ence. I know customers, and I some- for her basic living needs and the er-than-average income and educa- ple seem to want that sense of be- times call them when a book comes in Steadily growing freedom to focus in a more relaxed tion levels. She chose Rosedale Park, longing. I support all the local au- when I think they’ll like. It’s a low-tech, manner on the needs and wants of received location assistance from thors and big name authors by high-touch business.” In 1989, Janet Webster Jones, her customers. “It’s not just about who worked in the Detroit Public the sale of the books but about before retiring in 2000, be- building community and a rming Schools PROPOSED NEW ISSUE ANTICIPATED UNDERLYING RATING: gan selling books related to a study what they want and what they need; MOODY’S “Aa3”* tour she took in Egypt at local and at the same time, we can sell a events. Eventually, art gallery own- book.” $31,815,000* er Dell Pryor suggested they open Webster Jones believes there’s Spiral Collective, a consortium of room for more bookstores in De- four women-owned businesses in troit, adding “ ey don’t have to be Midtown. all the same.” Source Booksellers opened in 2005 and operated there for eight Personal service years before seizing the growth op- portunities in the area and moving “I think Detroit is a very under- GROSSE POINTE PUBLIC SCHOOL SYSTEM across the street to the Auburn served city as far as bookstores,” said building in 2013. In 2015, the com- Murphy. Inventory at Pages doesn’t County of Wayne, State of Michigan pany earned about $100,000 in rev- overlap much with that at Source. 2017 Refunding Bonds enue, she said. Pages has a large selection of ction Unlimited Tax–General Obligation “We have been steadily growing and children’s books. over the years, not very much, but Anticipated date of offering on or about there has been larger incremental “It’s the whole growth since moving.” e consid- Tu esday, January 24, 2017 erable development activity in Mid- experience... It’s a The offering of Bonds will be made only by the Ofcial Statement, which describes the security for such town and her street presence is re- low-tech, high- issue and which may be obtained in any state in which the undersigned may lawfully offer such issue. sulting in more street tra c and touch business.” new people coming to the store. Webster Jones confessed she had Susan Murphy, Pages Bookshop no previous business experience. “My training was in education and Murphy, a 60-year-old MBA, spent liberal arts. My instinct led me to do much of her career in IT and nance what I do. In business, you have to at General Motors Co. She went back VAN J. HAUSWIRTH build.” to school to earn a master’s degree in Senior Vice President, Investments What she built was a “presence library science but upon graduating Managing Director // Branch Manager over time with people in the city was unable to nd a job at a public [email protected] // vanhauswirth.com and all around the city, establishing library where she wanted to work relationships, trust and a reputa- with kids. In the meantime, she 15 Kercheval Avenue tion.” opened a market research rm. Grosse Pointe Farms, MI 48236 Source’s book collection empha- Eventually, someone asked if she sizes four categories: History and could do anything, what would it be? 313.885.9470 culture, metaphysical or new age, Her answer: Open a bookstore. health and wellbeing and books by Murphy worked “a lot” on her and about women. “I don’t really business plan and spent more than a This is neither an offer to sell nor a solicitation to buy any security. A credit rating of a security is not a recommendation to buy, sell or hold want a general interest bookstore. year talking to “all of the indepen- securities and may be subject to review, revisions, suspension, reduction or withdrawal at any time by the assigning rating agency. A deci- sion to purchase the Bonds is an investment decision that should only be made after a complete review and understanding of the terms of For me, it’s too hard to keep up with dent bookstore owners” in Ann Ar- the Bonds, including investment risks. No decision should be made prior to receipt and review of the Preliminary Ofcial Statement and that inventory. I have high quality bor and metro Detroit, which includ- applicable pricing information. Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. books, books new and not new, ed frequent conversations with books that are interesting.” e Webster Jones. *Preliminary, subject to change 10 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 SPECIAL REPORT: LAW The Trump rules
President Donald Trump plans a litany of regulatory changes, many of which will directly impact businesses.
BLOOMBERG
Promise of vast change in regulatory landscape “Right now, we’re has businesses taking wait-and-see approach all pausing on 100-day action Mexico. It’s safe to By Dustin Walsh imports. Since his win in November, plan targets trade, [email protected] Detroit’s automakers have collec- say everyone is Ford Motor Co., General Motors Co. tively announced nearly $3 billion in advising the same and Fiat Chrysler recently announced U.S. investment and the promise to China, health care plans to reinvest in the U.S. and create thousands of jobs. Experts, thing: to wait and Southeast Michigan, goaded by new like Wybo, believe Trump’s attacks see.” By Dustin Walsh i s between the nations and boost President Donald Trump and threats had little to do with the announce- [email protected] the U.S.’s exports, mostly for agri- of new U.S. limits on trade. Yet com- ments and market conditions were Steve Wybo, Conway MacKenzie Inc. President Donald Trump plans cultural goods. However, China’s panies in the supply chain remain in the deciding factor. a litany of regulatory changes, involvement in TPP has many a holding pattern as looming regula- But Trump is demanding Con- sector technology leader for Ernst & many of which will directly impact skeptical, including Trump, who tory changes remain murky. gress present a plan to impose im- Young LLC in Detroit, said the rm’s businesses. However, a main tenet believes the world’s largest econo- Steve Wybo, senior managing di- port tari s in the rst 100 days of his clients are being urged to model im- of his regulatory reform platform is my participates unfairly in trade rector at Birmingham-based adviso- presidency. ports and exports against the Repub- eliminating two existing regula- and currency. ry rm Conway MacKenzie Inc., said House Republicans jump-started lican plan to determine exposure. tions for every new one enacted. n Under new Secretary of Trea- two current clients prepared to in- an old plan as a more busi- “ ere’s not a lot of certainty in the Below is a summary, not all-en- sury Steve Mnuchin, U.S. will label vest signi cantly in Mexico have sus- ness-friendly alternative to Trump’s details, and obviously things can compassing, of Trump’s 100-day China a currency manipulator: e pended those plans for the rst hun- 35 percent “big border tax.” e change on a dime, but these discus- action plan: administration’s argument is that dred days of Trump’s presidency. House plan calls for a reduction in sions are happening across the sup- n Renegotiate or withdraw from China has used scal and mone- Wybo is representing a stamping the corporate tax rate to 20 percent ply chain,” Kelly said. “Our clients, the North American Free Trade tary measures to arti cially deate company generating more than $300 from 35 percent, coupled with a bor- particularly the suppliers and auto- Agreement: Trump has said he its currency, making its product million in revenue and a midsize der adjustment tax of 20 percent makers can be impacted heavily would accomplish this through Ar- cheaper on the international mar- plastic molding supplier. e stamp- while also exempting exports. from this. It’s in their best interest to ticle 2205 of the agreement, which ket, particularly in countries like er had planned to double the size of e plan accomplishes several understand their position.” allows a party to withdraw with six the U.S. where the dollar is strong. its production plant in Mexico to goals: Reduce the world’s highest Economists, however, seem split months’ notice. It’s unclear wheth- Potential e ects include reaction- support its customers, but can’t af- corporate tax rate; eliminate the tax- over the e ectiveness of the House er the president’s o ce has the au- ary measures by China that impact ford the risk with tari s designed to ation of foreign pro ts; promote ex- plan. thority to do this unilaterally. e U.S. businesses’ ability to expand punish importers to the U.S. on the ports, while also punishing compa- Charles Ballard, economist at impacts of renegotiation or with- in the growing Chinese economy. president’s agenda. “Right now, nies that use low-cost countries like Michigan State University, said the drawal are mixed, but experts pre- China is a strong growth market for we’re all pausing on Mexico,” Wybo Mexico to manufacture their prod- plan hinges on the dangers of carry- dict it would deeply impact South- the Southeast Michigan auto in- said. “It’s safe to say everyone is ad- ucts for the U.S. market. ing a trade de cit — which Trump east Michigan’s automotive dustry. vising the same thing: to wait and e border adjustment is a core railed against throughout his cam- industry and make manufactured n Identify all foreign-trading s e e .” part of the House’s tax plan, released paign. goods, like cars, that are imported abuses: e goal here is to level the Trump has said he wants a plan to originally in June 2016, to o set the “We’re losing a tremendous from Mexico more expensive. playing eld. Trump and his ad- punish importers, taking aim at au- slashing of the corporate tax rate. e amount of money, according to n Immediate withdrawal from ministration believe U.S. trading tomakers who produce in Mexico adjustment would generate $1 tril- many stats, $800 billion a year on the Trans-Pacic Partnership: e partners do not follow the guide- and import to the U.S. market. lion over a decade, according to sev- trade,” Trump told the New York controversial trade agreement lines of trade regulations, making During his presidential campaign, he eral analyses. Times during his campaign. with American and Asian-Paci c U.S. businesses less competitive. If threatened a 35 percent tari on auto Daniel Kelly, the Americas auto SEE TRADE, PAGE 11 countries is designed to slash tar- SEE TARGETS, PAGE 11 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 11
SPECIAL REPORT: LAW
“I’ve got more questions deferred action, many of which are TRADE TARGETS now in college or working in the FROM PAGE 10 than answers about this FROM PAGE 10 U.S., or only restrict new DACA Right now, the U.S. imports $460 (House plan). I don’t feel measures are too strong, a trade designation. billion more than it exports, result- war could ensue, which would im- n Suspend immigration from “ter- ing in a trade deficit of about 2.5 comfortable with this mediately impact Michigan export- ror-prone regions”: Trump, who percent of the gross domestic proposal because I see so ers. railed against the Middle East product. This, simplified, means n Li regulations on coal, shale oil, throughout his presidential cam- the U.S. consumes more than it many question marks.” natural gas and greenlight the stalled paign, has longed to end immigra- produces — we buy more products Charles Ballard, Michigan State University Keystone Pipeline: e regulations tion from countries where terror- made elsewhere than we sell else- were largely installed as environ- ism is more prevalent. It’s unclear where. mental protections. Impact to local how the administration plans to Ballard said the trade deficit has proposal because I see so many Walawender said this creates industry is minimal at the onset, accomplish this and whether that far more to do with U.S. consumer question marks.” another wrinkle in the plan and but could minimize energy costs will directly impact businesses’ spending habits, or the lack of sav- Trump also isn’t sold on the puts business on pins and needles and increase production in the ability to bring in workers on cer- ings, than imports. Ballard said, “a House plan. for even more time. state. tain work visas. major rewrite of our tax law to ad- “Anytime I hear border adjust- “You’re going to have a lot of n Cancel every executive order is- n Repeal and replace the Aord- dress that problems seems mis- ment, I don’t love it,” he said in an cases filed with the WTO (if this sued by former President Barack able Care Act: A staple of the Obama placed.” interview with the Wall Street Jour- plan becomes law),” he said. “The Obama: Trump’s plan seems to fo- administration and vili ed by Re- The House plan would also nal. “...it usually means we’re go- process in the WTO is multi-year, cus on immigration, including the publicans and many business own- cause rampant appreciation of the ing to get adjusted into a bad deal.” so it could be three years before canceling of the Deferred Action for ers, ACA brought health insurance dollar, which would cause prod- The World Trade Organization is there’s any sort of resolution. What Childhood Arrivals rule, which al- to more than 20 million Americans. ucts made outside the U.S. to be also likely to have a problem with does business do then?” lows undocumented immigrants Hoped-for reductions in health cheaper and incentivize consum- the border adjustment, said Rick Wybo believes the concern will who entered the country as minors care costs have not happened, ers to want those products. Walawender, senior partner at De- be short-lived and that Trump and to receive a renewable two-year pe- however. Congress has yet to o er a Harvard University economist troit-based law firm Miller Canfield Congress won’t come to an easy riod of deferred action from depor- replacement yet, but it could lead Martin Feldstein said earlier this Paddock and Stone PLC. agreement — and other political tation. It’s unclear whether this to more breathing room for bottom month that the plan would cause While the WTO allows border hot-button issues will distract the would a ect those already under lines of businesses. appreciation of up to 25 percent. adjustments on indirect levies, trade talks. That, however, makes the border such as sales tax, it’s explicit in its “I don’t see trade unwinding; adjustment moot in its goal of denial of border adjustments on Trump will pick up another win or Trump and his administration believe forcing domestic production as it income tax, which provides an un- two, tweet about it and move on,” U.S. trading partners do not follow the would offset taxes on importing fair advantage, in its view, to U.S. Wybo said. “The supply chain is products, Ballard said. producers. The WTO could re- not going to change course, in my guidelines of trade regulation, “I’ve got more questions than spond with trade sanctions against opinion, because of politics.” making U.S. businesses less answers about this,” Ballard said. the U.S. if the House plan is rati- Dustin Walsh: (313) 446-6042 “I don’t feel comfortable with this fied. Twitter: @dustinpwalsh competitive.
ONL SEA Y A FEW START THE NEW YEAR BY NOMINATING TS LEFT! ONE OF YOUR BRIGHTEST FOR
PRESENTING SPONSORS
a NEW program for the next generation of leaders. NOMINATE YOUR RISING STARS FOR THIS HIGHLY SUCCESSFUL PROGRAM BY JAN./27, 2017. DEADLINE EXTENDED TO FEB. 3 Nominate and learn more at crainsdetroit/.com/leadershipacademy 12 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017
BorgWarner Inc., will dissect current 2017 Detroit Policy Conference: Re- Economic Prospects for the U.S. mobility e orts and share insights igniting an Innovative Spirit. 7:30 a.m. and Regional Economy in 2017-2018. on the rapidly evolving road ahead. March 2. Detroit 11:30 a.m.-1:30 p.m. March 16. De- CALENDAR Westin Book Cadillac, Detroit. $45 Regional Cham- troit Economic Club. Stuart Ho- members; $55 guests of members; ber. Urban plan- man, senior vice president and chief WEDNESDAY UPCOMING EVENTS $75 nonmembers. Website: econ- ner Toni Grin, economist at PNC Financial Services JAN. 25 Car industry brieng: Driving Re- club.org. founder of Urban Group. will share his insights on Perfecting Company Culture. 8:30- gional Competitiveness in Advanced Planning for the Trump policy impacts and he will 10 a.m. Automation Alley. A discus- Mobility. 9 a.m.-noon. Feb. 8. Center Mobility — Its Disruption to the Auto American City, forecast important indicators such sion on creating a great culture and for Automotive Research. Event will Industry and Beyond. 5-8 p.m. Feb. 16. will deliver a as U.S. energy production, unem- how to use it to reduce turnover, at- provide a forum for organizations Marketing and Sales Executives of keynote address ployment and interest rates, the tract top candidates and nd out leading the way to next-generation Detroit. John McElroy, host of Auto- and Detroit stock market and consumer spend- how poor company culture nega- automotive and mobility technolo- line Daily and president of Blue Sky Duggan Mayor Mike Dug- ing. Westin Book Cadillac, Detroit. tively impacts an organization’s bot- gies to present their latest develop- Productions, will discuss the ins and gan will have a $45 members; $55 guests of mem- tom line. Guest speaker: Kris Powell, ments and shed light on transporta- outs of the auto industry. Manage- one-on-one conversation with Ste- bers; $75 nonmembers. Website: president and CEO, HRPro/BenePro. tion of the future. VisTaTech Center, ment Education Center, Troy. $45 phen Henderson, Pulitzer Prize-win- econclub.org. Automation Alley, Troy. $15 mem- Schoolcraft College. $95. Contact: members; $60 nonmembers. Web- ning editorial page editor for the bers; $25 nonmembers; $20 walk-in Shaun Whitehouse, phone: (734) site: msedetroit.org. Detroit Free Press. MotorCity Casino 9th annual Trade Secrets with Con- members; $30 walk-in nonmem- 929-0493; email: swhitehouse@car- Hotel, Detroit. $159 chamber mem- nie Holzer. 6-9:30 p.m. March 29. JVS. bers. Email: events@automational- group.org; website: cargroup.org Young Professionals Panel — The bers; $235 nonmembers. Contact: Keynote speaker Connie Holzer, own- ley.com; phone: (800) 427-5100. Changing Face of Leadership. 7:30-9 Sarah Nagel, phone: (313) 596-0384; er of Tom Holzer Ford, who has built it 2017 Technology Industry Outlook. a.m. Feb. 21. Leadership Oakland. email: [email protected]. into one of the top Ford dealerships State of the Region. 11 a.m.-1:30 8-11 a.m. Feb. 13. Automation Alley. Moderator: Jennifer Korman, Mer- in the country. Holzer took over the p.m. Detroit Regional Chamber. e 2017 Technology Industry Re- cedes-Benz Financial Services. Panel- How Trump Economics Will Fail The dealership when her husband Chamber Presi- port will be unveiled from Automa- ists: Talisa Norton, co-owner/COO, Middle Class. 11:30 a.m.-1:30 p.m. passed away in 2006, at the same dent Sandy Baru- tion Alley’s survey of technology and All Pro Color; Sara Stoddard, chief of March 7. Detroit Economic Club. time the country was going into an ah will deliver a manufacturing executives from emergency management, Oakland Speaker Neera Tanden, president, economic tailspin. Troy Marriott. presentation on Southeast Michigan and across the County Homeland Security Divi- Center for American Progress. $150. Contact: Judy Strongman, the third State of country to determine their knowl- sion; Jordan Twardy, community and Townsend Hotel, Birmingham. $45 phone: (248) 233-4213; email: the Region re- edge of Industry 4.0, or the fourth economic development director, city members; $55 guests of members; [email protected]; website:jvs- port, an analysis industrial revolution, and whether of Ferndale. MSU Management $75 nonmembers. Website: econ- det.org/tradesecrets of the economic they are ready for the coming chang- Education Center, Troy. $32 mem- club.org. indicators relat- es in the manufacturing industry. bers; $36 nonmembers. Website: ed to business Detroit Institute of Arts, Detroit. $25 leadershipoakland.com. Asian Pacic American Chamber Baruah growth, talent, members; $45 nonmembers. Email: of Commerce 14th Annual East-West Visit innovation and [email protected]; The State of Manufacturing 2017: A Business Connection. 9:30 a.m.-3:30 Calendar guidelines. crainsdetroit.com and click “Events” international commerce for South- phone: (800) 427-5100. New Way Forward. 11:30 a.m.-1:30 p.m. p.m. March 8. Global business net- near the top of the home page. east Michigan. e report highlights Feb. 24. Detroit Economic Club. Jay working event, comprised of Asian Then, click “Submit Your Events” assets, rankings and opportunities Giving Up the Wheel: The Future of Timmons, president and CEO, National and U.S. businesses and minority from the drop-down menu that will for key industries. Westin Book Ca- Mobility and Its Impact on Michigan. Association of Manufacturers, on to- business enterprises throughout appear. Fill out the submission form, dillac, Detroit. $50 chamber mem- 11:30 a.m.-1:30 p.m. Feb. 14. Detroit day’s industry, the latest on the Trump the Midwest. Edward Village, then click “Submit event” at the bers; $100 nonmembers. Price in- Economic Club. David Dauch, chair- administration, the new Congress and Dearborn. APACC $70 member; bottom of the page. creases on Jan. 18 to $65 members man and CEO, American Axle & Man- manufacturing in America. Westin $95 nonmember; $100 walk-in. and $115 nonmembers. Contact: ufacturing Holdings; Matt Simoncini, Book Cadillac, Detroit. $45 members; Contact: Leonie Teichman, phone: More Calendar items can be found Andrea Rayburn, phone: (313) 596- president and CEO, Lear Corp.; and $55 guests of members; $75 nonmem- (248) 430-5855; email: leonie@ at crainsdetroit.com/events. 0340. James Verrier, president and CEO, bers. Website: econclub.org. apacc.net
SEASON TICKETS COSTAR GROUP INC. Logistics company C.H. Robinson Worldwide Inc. plans to move into this building on Pond Run Road o University Drive in Auburn Hills. ON SALE NOW C.H. Robinson leaving RenCen, Flint locations for Auburn Hills By Kirk Pinho occupy the building by the beginning [email protected] of next month with its $1.75 million Logistics company C.H. Robinson build-out. Worldwide Inc. is bucking the trend of According to CoStar Group Inc., a AS LOW AS BENEFITS INCLUDE: companies moving to downtown De- Washington, D.C.-based real estate in- troit by consolidating its Renaissance formation service, South eld-based • Season Ticket Center and Flint o ces in Auburn Hantz Group LLC bought the building in Discount Hills. August for $5.55 million. It was built in Tony Reggio, general manager of the 2005 and sits on over 5 acres, accord- • Opening Day local o ce of the publicly traded Eden ing to a marketing brochure from 13 Prairie, Minn.-based company (NAS- Bingham Farms-based Core Partners Tickets* DAQ: CHRW), said in a Tuesday state- LLC. Core was the brokerage rm on ment that 160 employees will move the building sale and C.H. Robinson Per Game • Postseason into a 40,000-square-foot building. lease and is handling property man- Ticket Priority “ is speci c location specializes in agement on the building. working with our automotive custom- Crain’s reported in 2009 that the ers — providing global logistics solu- company was moving from South eld tions for both suppliers and OEMs.” to 11,000 square feet in the RenCen. Steve Cohen, director of communi- C.H. Robinson had been in the Travel- ty development for Auburn Hills, said ers Towers o ce complex in South- C.H. Robinson submitted a building eld prior to moving to the RenCen. permit to the city in September to ren- e local o ce of Los Ange- ovate a 40,700-square-foot building at les-based CBRE Inc. handles leasing 1885 Pond Run Road o of University and management for the property. *Restrictions apply. Drive between I-75 and North Squirrel e company’s Flint location is Road. He said the company is trying to west of I-75 o Hill Road. CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 13 DEALS & DETAILS ACQUISITIONS & MERGERS Trust and Estate Experience Cahill Services LLC, Houston, Tex- as, a rental services rm in oil and ® gas and related industries, acquired In Your Corner. the intellectual property and world- wide distribution rights of JetHeat Ŷ Over 30 years’ experience in helping LLC, Livonia, a ameless heating clients protect their families with e cient, product company. Website: cahills- ervices.com. understandable, and e ective estate plans. Ŷ Expertise in estate and income tax CONTRACTS Ulliance Inc., Troy, a provider of planning, assets protection, and business human resources services, is pro- succession planning. viding its Life Advisor EAP service line to the Detroit Zoological Society, Royal Oak, HELLA Corporate Center USA Inc., Plymouth, and Spicer Group Inc., Detroit. Website: ul- liance.com.
Near Perfect Media LLC, Birming- ham, a public relations rm, has been named the agency of record for The Ashton Detroit, Detroit; Bow- man Auto Group, Clarkston; Con- cours d’Elegance, Troy; Maison Bir- mingham, Birmingham; Meadowlark Design + Build, Ann Arbor; and Wol- verine Human Services, Detroit. Website: nearperfectmedia.com. First Tier Ranking Continuity Programs Inc., Walled Trusts & Estates Lake, a customer relationship mar- keting rm, has partnered with Ser- Contact Tom Bergh at [email protected] Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings vice Rountable, Lewisville, Texas, a private contractor business alliance in plumbing, electrical, solar, heat- ing and air conditioning trades, to o er tools that help nd leads, close sales and market their companies. Websites: continuityprograms.com, serviceroundtable.com.
EXPANSIONS Denso, South eld, a global auto supplier, announced the opening of the Denso R&D Lab at the University of Michigan, Ann Arbor. e lab will accelerate development of new auto safety technologies and create new research opportunities for en- gineering students. Website: denso. com.
MOVES Merrill Lynch has moved its oce from 16835 Kercheval Ave., Grosse Pointe, to 17000 Kercheval Ave., Grosse Pointe. Telephone: (888) 637-7837. Website: ml.com.
NEW SERVICES Amber Engine, Detroit, a technol- ogy rm, launched Amber Engine for Retailers, a digital portal that al- lows home furnishings retailers to manage their product data in one simpli ed location. Website: am- berengine.com.
Deals & Details guidelines. Email [email protected]. Use any Deals & Details item as a model for your release, and look for the appropriate category. Without complete information, your item will not run. Photos are welcome, but we cannot guarantee they will be used. 14 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 ADVERTISEMENT SECTION PEOPLE: SPOTLIGHT REAL ESTATE LAW Wayne County Airport Authority names CEO
e Wayne County Airport Au- thority has appointed Joseph Nar- done, who had been serving as in- terim CEO, as the new ENGINEERING top executive & CONSULTING to oversee operation of Daniel W. Mitchell, P.E. Karen L. Gerstenberger Silvia Alexandria Mansoor Detroit Met- ropolitan and President Chief Financial O cer Associate Nardone Willow Run Hubbell, Roth & Clark, The Platform Dean & Fulkerson, P.C. airports. Inc. Karen joined The Platform, a real estate Silvia’s practice areas include transactional He had served previously as Hubbell, Roth & Clark, Inc. development company focused on the law focusing primarily on corporate and the airport authority’s vice presi- (HRC) is proud to re-building of Detroit. She manages The real estate transactions. She has speci c dent of business development. announce Daniel W. Mitchell, P.E., has been Platform’s nancial, accounting, risk experience with startup companies and He became interim CEO when named President. Mr. Mitchell is a registered management and human resources. She technology, and she has served as a his predecessor, Thomas Naugh- Professional Engineer and has a bachelor’s has more than 20 years of experience, and consultant with the Minority Business ton, retired in September. degree in Mechanical Engineering from is a member of the Michigan Association of Development Agency (MBDA). Silvia serves e initial term of Nardone's Lawrence Technological University. He has Certi ed Public Accountants and the CFO on the New Lawyers Advisory Board for the employment agreement is three been with HRC since 1990 and serves as Forum. Previously, Karen served as CFO of Institute of Continuing Legal Education. years. Principal In-Charge of all of HRC’s eld The Hayman Company in South eld. She She is the New Lawyers Committee services. Also, he is the primary contact for graduated from Central Michigan University Director for the Oakland County Bar Klamerus president the Cities of Livonia, Pontiac, Rochester Hills with a bachelor’s degree in Business Association and the Website Chair for the at Karmanos Hospital and South eld; the Villages of Beverly Hills Administration. Women’s Bar Association. and Bingham Farms. Justin Klamerus, M.D., has been appointed president of the HEALTH CARE ENGINEERING ACCOUNTING Barbara Ann & CONSULTING Karmanos Cancer Hospi- Michael P. Lacusta Erin Quetell Tavi Finn tal, the clini- cal operation Vice President of Water Resources Principal of Detroit's Business Development Specialist WSR Certi ed Public Karmanos McLaren Health Care OHM Advisors Accountants Cancer Insti- Lucusta will identify and Erin Quetell joins OHM Tavi Finn is a Certi ed tute, where develop business Advisors as a water Public Accountant who has he will head opportunities for McLaren. His expertise will resources specialist in the been practicing in public accounting for 19 Klamerus all clinical guide McLaren as it expands within and environmental and water resources group. years, and is bringing her Big-Four auditing operations at beyond Michigan’s borders. Lacusta has more She is a recent graduate of Columbia experience to her clients at WSR, as she treatment centers in Detroit and than 35 years of experience in health care University, where she received her MPA in moves into the role of Principal at the rm. Farmington Hills. operations, physician group management, environmental science and policy. She has She holds a Master’s of Science Degree in Klamerus has served as inter- nance and health care consulting, including worked at the Greening of Detroit Accounting from Eastern Michigan University. im president since April 2016, 20 years with the Detroit Medical Center in implementing green infrastructure projects. Her primary focus at WSR is on the audit and following the exit of Margaret Di- senior management positions. McLaren is a At OHM Advisors, she is responsible for other attest services that WSR provides their mond, who left to become presi- fully integrated health network with 22,000 assisting the development of the integrated clients, as well as consulting services related dent of Crittenton Hospital Medi- employees and more than 40,000 network sustainability solutions practice, stormwater to accounting and audit preparation needs. cal Center. providers. related projects, community facilitation and engagement. Re/Max of SE Michigan REAL ESTATE appoints new VP Re/Max of Southeastern Michi- Art H. Kuljian, gan has appointed Jeanette Paula Goldman-Spinner Schneider to Lifetime Achievement PE, BCEE vice presi- Award Industrial Water/ dent of man- Building Owners and Wastewater Practice agement ser- Managers Association Leader Order The vices, (BOMA) Metro Detroit OHM Advisors marking a Paula Goldman-Spinner, RPA, was recently Art Kuljian is a board-certi ed environmental return to honored with BOMA Metro Detroit’s second engineer with more than 37 years of Perfect metro De- ever Lifetime Achievement Award. Goldman- experience. He joins OHM Advisors as senior Of ce Decoration troit for the Spinner is Vice President and Director of project manager and is responsible for water real estate Commercial Properties at Schostak Brothers and wastewater treatment design/reuse, and a small (humble) brag! Schneider veteran. & Company Inc., a full-service commercial remedial design and regulatory permitting. He Increase the life span of your Schneider, and residential real estate company based in is an expert in the elds of physical/chemical announcement with a keepsake plaque. 52, has Livonia. She has been employed at Schostak treatment, ultra- ltration, reverse osmosis worked for the real estate compa- Brothers since March 1978. A graduate of and membrane biological reactors, with ny in Georgia, Tennessee, Ken- Wayne State University, Goldman-Spinner previous experience at Tetra Tech, Argonne To order, contact tucky and Ohio. Her most recent also has a distinguished history of service to National Laboratory and the U.S. Krista Bora at position was senior vice presi- BOMA/Metro Detroit. Environmental Protection Agency. [email protected], dent of broker and agent devel- (212) 210-0750 opment for Re/Max Regional Ser- vices, based in Georgia. In 2003, Schneider was recog- regarding advertising in this section, nized by Crain's Detroit Business For more information or questions as a 40 under 40, an annual salute please call Lynn Calcaterra at (313) 446-6086 or email: [email protected] to young achievers who made their mark before the age of 40. January 23, 2017 CRAIN’S DETROITC RAINBUSINESS’S DETROIT BUSINESS // JANUARY 23, 2017 Page15 15 JOB FRONT MISCELLANEOUS POSITIONS AVAILABLE
SOFTWARE SURVEY Autodesk’s Novi office has openings for: ANALYZE SR. SOFTWARE ENGINEER Develop, create & modify computer MATCH applications software/specialized utility programs. CHAD LIVENGOOD TO APPLY: The Packard Plant is a symbol of Detroit’s decades-long decay and is about to undergo a multimillion-dollar renovation. Email resume to: [email protected] of its xtures, metal pipes and marble ponent, which will be artist live-work & indicate job code BG057. PACKARD oors years ago by scrappers. space,” she said. FROM PAGE 1 “All we have is the shell of the Smith said Arte Express has a time- CrainsDetroit.com/JobConnect | “Because it’s part of our business, building,” Smith said. line of completing the second and we’re excited to be associated with Albert Kahn Associates Inc., the De- third phases by 2021. MARKET and located in such an important troit architectural rm founded by Arte Express is running its Packard The Crain’s Reader project of that type,” Silveri said. Packard Plant designer Albert Kahn, Plant redevelopment operations out PLACE Silveri said architects he’s met conducted a structural analysis of the of the former Packard marine engine 26.5% influence the purchase of office/industrial and commerical space. INDUSTRIAL SERVICES from around the world know about plant and found 90 percent of the plant at 1600 E. Grand Blvd., which is Help them find you by advertising in the Packard because of its revolution- buildings are viable for renovation, owned by AmeriSource Industrial Sup- Crain’s Real Estate Section. C.W. JENNINGS ary early 20th century design for au- Smith said. ply Co. and is next door to the Packard 313.446.6086 • FAX: 313.446.034 7 INDUSTRIAL EXCHANGE tomobile production and later be- Smith credits the steel-reinforced building slated for rehabilitation. E-Mail: cdbclassi [email protected] cause it became a symbol of Detroit’s concrete construction invented by Two of the committed tenants, Envi- Global Industrial Consulting decades-long decay. Kahn’s engineer-brother, Julius Kahn, ronmental Consulting & Technology Construction • Acquisitions “ ere aren’t a lot of places for an for the much of the Packard plant re- Inc. and Testing Engineers & Consul- Exporting • Financing architect to set up shop that is imme- maining intact. tants, have existing o ces in Detroit. (855) 707-1944 diately recognizable by anyone,” Sil- Julius Kahn’s design reinforced Testing Engineers & Consultants, veri said. each column in the plant with eight plans to move out of its ve-person Call or email today for information Bringing the former Packard Mo- sections of 1-inch thick steel rebar o ce on West Fort Street to space in on a custom advertising plan! tor Car Co.’s administration building wrapped in a metal coil and cast in the Packard, where the company is [email protected] back to life is the rst phase of Pala- concrete and stone, Smith said. consulting the owner on asbestos and 313.446.6068 zuelo’s multimillion-dollar bid to res- “ ey’re hard to demolish, very ex- environmental cleanup and other en- urrect one of Detroit’s most infamous pensive to demolish, which is why gineering work. industrial eyesores. they have withstood because the ex- “We’ve had a good relationship “I believe in the plan, I believe in pense was too much for the city of with them and it seemed a like a good the project,” said Eric Williamson, Detroit, pre-bankruptcy, to demolish t to be there once it’s up and run- REAL ESTATE owner of South eld-based Sterling these buildings,” Smith said. “And ning,” said Carey Suhan, vice presi- Security. “I believe it’s going to be we’re glad that they didn’t, because dent of the Troy-based engineering INDUSTRIAL PROPERTY RESIDENTIAL PROPERTY something that happens.” these buildings are viable and we’ll rm. FOR SALE e rst phase includes rehabili- bring them back to life.” ROMEO, MI 45 HOME SITES tating the bridge over East Grand Catering space 75 Acre Vacant Industrial Land # Re-Zoned # Aprv’d Site Plan Boulevard that was once part of the Work in phases All Utilities, 1,334 Road Frontage # Engineered # Fully Permitted 1/2 Mile from Freeway Exit Ready to Develop & Build Packard Plant assembly line. Esto’s Garage, a southwest Detroit METRO PARKWAY & UITCA ROAD For the past two years, the gra - Smith, an architectural historian catering company, also has commit- Call George @ 586-531-2436 CLINTON TOWNSHIP ti-tagged bridge has been wrapped by and historic preservationist, has a ted to leasing space on the rst oor [email protected] 586-703-6100 a giant picture showing an image of personal connection to the rst Pack- next to an area designated for a coee what the bridge looked like in the ard building that will be renovated. shop in Arte Express’ architectural OFFICE BUILDING 1930s — and how it will look once it is Her grandfather, Russell A. Smith, drawings. SITE PLAN APPROVED restored. e bridge will become a worked for the Packard car company Esteban Castro, owner of Esto’s pedestrian crossing to the south side from 1927 to 1952, ending his career Garage, said he’s going to have a NORTHVILLE TECHNOLOGY PARK of the 3.5 million square foot com- as the automaker’s executive steel kitchen inside the Packard building CONSTRUCTION TO START IMMEDIATELY plex, Smith said. buyer. and then park his food truck in a for- ANTICIPATING MID 2017 COMPLETION e Detroit City Council has already “His o ce was in this building, mer loading dock that faces East granted the developer a 12-year which makes it even more important Grand Boulevard. freeze on the taxable value of the for a historian to have that family con- Castro does catering part-time. He property, basing it on the current de- nection,” She said. “It really draws you works full time in the engineering lab crepit condition of the buildings. emotionally into the project more.” at the Detroit Diesel plant as he slowly Smith said the rst building will Sterling Security is already provid- ramps up his catering and food truck 5 MILE AND BECK ROAD | NORTHVILLE TOWNSHIP, MICHIGAN serve as a “pinnacle” for renovating ing on-site 24-hour security at the business. the Packard’s other buildings, though Packard Plant and plans to house a “I’ve put my chips on this build- • NEW CORPORATE FACILTIY FOR OFFICE, HI-TECH AND R&D she acknowledges the rst phase of complexwide camera surveillance ing,” Castro said. “It will be a great • IMMEDIATE ACCESS TO M14/I-275 VIA BECK ROAD the redevelopment likely won’t be a system and back o ce operations in part of the city’s story.” FOR MORE INFORMATION CONTACT ED WUJEK • DAVID GILTNER • BRANDON CARNEGIE moneymaker. the Packard administration building, Palazuelo’s plans for restoring the 248.353.5400 “ is building is the rst building Williamson said. long-neglected Packard Plant has [email protected] of several, so we’re not expecting e company has ve security drawn skepticism from local real es-
great revenue from this building,” guards who patrol the grounds and tate developers, particularly because [email protected] Smith said. “We’re expecting a lot to surrounding streets in white Ford Fu- the complex is more than three miles go out for this building.” sions. e rst oor of the adminis- away from the resurgence in greater Removing debris and asbestos is tration building will be largely used downtown Detroit. already complete on the rst two for art galleries and event space, Castro said he’s become a believer The Crain’s reader: oors, but was halted for the winter Smith said. in Palazuelo’s seven- to 15-year reha- 29.2% are with companies because of the harsh conditions of “We have a lot of dierent organi- bilitation plan, which has suered working in the open-air building with zations who’d like to rent space,” setbacks since the native Spaniard contemplating moving/ no windows, Smith said. Smith said. Arte Express Detroit has purchased the Packard Plant in late expanding. Help them Since purchasing the Packard purchased vacant lots along East 2013 for $405,000 at a Wayne County plant over three years ago, Palazuelo Grand Boulevard that will be used to tax foreclosure auction. fi nd you by advertising in has spent about $4 million securing build three parking lots, Smith said. “Everything is thoughtful about the complex, clearing debris, over- e second phase of the Packard this project,” Castro said. “ is isn’t Crain’s Real Estate section. grown trees and removing dangerous plant redevelopment include “a rec- Twitter. is is like the real world. It pillars from one collapsed oor. reational component,” which Smith will take time.” 313.446.6086 • FAX: 313.446.034 7 Like the rest of the complex, the declined to divulge speci cs. Chad Livengood: (313) 446-1654 E-Mail: cdbclassi [email protected] administration building was stripped “Phase 3 is a our residential com- [email protected] 16 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 Companies can receive tax credits interest in social justice. CHECKBOX and other incentives for hiring ex-of- Aaron Branch Lazlo specializes in luxury T-shirts FROM PAGE 1 fenders. Much of the new interest, works on a priced at $120 for white and $160 for city of Detroit has removed the box however, is driven by business reali- T-shirt for an indigo version that is hand-dyed from its job applications and requires ties. A number of managers say their Lazlo LLC. inside the company’s headquarters. contractors to do the same, according employees with felony convictions Branch A second line, dubbed TBD, is set to to the employment law project. e are among their most dedicated, learned to sew launch at a lower price in an e ort to Michigan Department of Corrections perhaps because they recognize the while incarcer- reach a broader market. backs the concept; Gov. Rick Snyder job is a second chance. ated. He reached out to the state correc- has said he is open to considering it. “No one as a 5-year-old child says, ED BALLOTTS FOR tions system and asked if they knew Banning the box doesn’t mean end- ‘When I grow up, I want to be a drug CRAIN’S anyone who might be close to release ing criminal background checks. Em- dealer,’” Dioso said, adding that if who had some skills in sewing. Prison ployers who have taken the checkbox ex-inmates have no job or support administrators connected Birky with o of their applications say they still system upon release, “(if) someone Aaron Branch, who served 22 years in check backgrounds, but leave the dis- says, ‘If you take this from Point A to prison for assault with intent to com- cussion about an applicant’s record Point B and I’ll pay you $200,’ guess that helps people with disabilities; from skills training to direct employ- mit murder after, he said, an incident until later in the process, and perhaps what? You’re going to do that so you and Goodwill Industries of Greater De- er outreach — caused the drop in involving a friend. While in prison, he only a few senior managers are ever can get your kids dinner.” troit, whose “Flip the Script” pro- recidivism. Yet they undoubtedly was brought up on charges of assault- aware. Several said they use their own gram prepares people with felony have helped, Robinson said. ing a sta er that he said landed him in discretion on the types of convictions Skilled trades shortage records for work. “We know that not every company a solitary cell for more than six years. they will allow; some pass on candi- Dioso said Alta generally doesn’t is going to ban the box,” said Robinson, Branch said it was then that his dates with violent or sexual o enses, At Alta, the decision to recruit pa- consider applicants convicted of vio- who previously worked as a prisoner attitude began to change. His behav- while others are willing to look past the rolees started with a math problem. lent crimes. It conducts an extensive re-entry specialist covering Southeast ior improved. He got a job sewing for nature of the o ense if the candidate When Dioso started with the background check after a job o er is Michigan. “We just want employers Michigan State Industries, which em- shows technical aptitude. company more than three years ago, extended, when a discussion about a not to exclude the population.” ploys prisoners to produce a variety “We’re doing it because we have a she and her team looked at the de- criminal history would happen. If a Advocates for the prison popula- of items for use inside and outside business need, and we’re pursuing it mographics of their mechanics to candidate is referred from a service tion say the challenges run deep. In prisons. Branch, 47, sewed du el because it’s the right thing to do,” estimate how many might retire by agency, she said it’s likely she al- Detroit, service providers face a “per- bags, mattress covers, kitchen linens said Rebecca Dioso, human resourc- the time they turn 65. e numbers ready knows about the record. fect storm” that includes not just felo- and other fabrics. es vice president for Alta Equipment stunned her: Between 40 percent Usually, just two people — Dioso ny convictions but high illiteracy He was released in September Co. in Livonia, a forklift and heavy and 60 percent of the company’s me- and a human resources manager — are rates and suspended driver’s licens- 2015. He had no credit history, no construction equipment distributor. chanics could be ready to retire with- aware of a new hire’s record, she said. es, said Keith Bennett, director of driver’s license, no place to live. e company took the checkbox in four to six years — between 120 e company’s starting wage rang- Goodwill Detroit’s “Flip the Script” But he had a job. o of its job applications a few years and 180 employees. es from $15 to 18 per hour depending programs and services. Job place- Birky interviewed Branch for the ago and hired its rst ex-inmate in “ at is a massive number,” Dioso on the type of equipment an employ- ment is the nonpro t’s core business. Lazlo job via the internet video chat 2014, Dioso said. Today it employs said. ee handles. Dioso said all ve of its “What employers are nding is if service Skype while Branch was still ve — less than 1 percent of Alta’s So massive that it quickly prompt- ex-o ender employees earn more they wait the process out until we in prison. 735-person workforce. e company ed conversations about how to get than starting wage. A road technician, can really get someone ready, then Despite the fact that he didn’t is in the process of hiring its sixth, enough mechanics in the pipeline the rst one to be hired, earns $23.40 it’s worth the wait.” technically have a formal job o er at who still is incarcerated. amid a steep shortage in people with an hour and received a promotion Kit McDonald, who owns a small the time, Branch said, “in my mind, I Yet even as more are willing to con- skills in the trade. Alta even bought a within his rst six months, she said. auto repair shop called DK’s Repairs had the job.” sider ex-o enders, convincing em- building and leased a portion of it to “It’s safe to say that he’s earning in Detroit, hired an ex-o ender in Birky said he didn’t interview any- ployers to hire someone with a felony a for-pro t company that created a well in excess of $50,000 a year as a September after someone with the one else for the job. record remains a hurdle to success. heavy equipment mechanic training mechanic,” with full bene ts, she state corrections department noticed State corrections administrators have program; in exchange for Alta paying said. “Every year, he writes me the a job ad he’d posted on Craigslist and More opportunities made re-entry employment a priority. a portion of a student’s training, the nicest thank-you letter: ‘You’ve asked if he’d be willing to consider e department has opened new vo- candidate commits to three years of changed my life. You’ve changed my someone coming out of prison. e corrections department has cational training programs within two employment for Alta. family. You’ve changed my neigh- e parolee he hired, Jacob Pratt, revamped some training programs, prisons, intended for inmates who Two-thirds of Alta’s business borhood. ank you for giving me studied automotive repair through including automotive repair, and in- show the most potential for employ- comes from the forklift side. It has the opportunity.’ I put my neck out the Vocational Village program in troduced others based on market ment. Re-entry specialists shop in- more than $300 million in revenue there, and it was a good decision.” Ionia but had little hands-on work demand for skills, Robinson said. mates’ resumes around to employers from business in three states — experience. She added that the department and take them to career fairs. ey re- Michigan, Indiana and Illinois. Post-prison jobs Before prison, Pratt said, he’d had invited the International Brotherhood fer their best candidates directly to Alta started to work with various few job skills and often resorted to of Electrical Workers union into Voca- employers and to nonpro ts that help state departments and nonpro ts e link between employment criminal activity — including selling tional Village and asked about the with nancial coaching and job place- that serve ex-o enders, including and staying out of prison shows up drugs — to make money. He said he current skills electricians need to ment. In some cases, they set up video the Michigan Department of Correc- in the numbers. did some jail time for a drunken ght help improve its program. interviews while the inmate is still in- tions; Michigan Rehabilitation Ser- In 1998, close to half of all inmates in 2012 in Oakland County, but an- e state has partnered with Pin- carcerated. Some have left prison with vices, a unit of the Michigan Depart- paroled that year — 45.7 percent — other ght while intoxicated a few nacle Truck Driver Training Inc., a job o ers. ment of Health and Human Services wound up back behind bars within years later sent him to prison for a training school in Cadillac, to help three years. probation violation. prepare new truck drivers. As many Since then, the state corrections e mechanic job is a new path, as 15 ex-o enders have completed department has focused on changing he said, for him and his young son. training so far, said Tim Baker, Pin- prison culture to emphasize success- “If no one helps them, they’re going nacle’s operations vice president. ful release, said Janella Robinson, re- to be right back out there doing the Trucking, facing a shortage in labor, gional manager for eld operations same thing they did because they can’t has turned more to drivers with for the Michigan Department of Cor- get a job and they don’t have money,” criminal records, Baker said — a rections. at includes identifying McDonald said, adding that he doesn’t “game-changer” in an industry that the reasons why someone might be dwell on an applicant’s criminal past charges higher insurance premiums doing time and o ering help, such as during interviews. “He may be the best to companies that hire felons. substance abuse counseling or gen- employee you’ll ever have. You don’t Partnerships with service organi- eral or vocational education. know that, but he’s sure not going to be zations like Goodwill and labor Today, fewer inmates in Michigan the best employee you ever had if you unions have helped create more op- are returning to prison. Of those pa- don’t give him a shot.” portunities, Robinson said. roled in 2012, the most recent year Abdullah, who once felt com- HELPING COMPANIES NAVIGATE THROUGH available, 31 percent returned within Sewing skills pelled to lie about his past on a job three years, state data show. e application to get his foot in the DIFFICULT BUSINESS SITUATIONS data predate some of the depart- Christian Birky and his sister co- door, was accepted as an ironwork- ment’s current initiatives, including founded , a fashion startup ers apprentice. e Detroit resident • Turnaround, Workouts & Restructuring Lazlo LLC • Performance Improvement Vocational Village, a residential skills in a coworking space in Detroit’s says he has done some of the iron- • Litigation Support training program at prisons in Ionia Corktown neighborhood, in 2015 work at the new Little Caesars Arena • Fraud Investigations & Forensic Accounting and Jackson that launched last year. with dual goals: To pay a living wage under construction downtown. • Executive Coaching In general, between 8,500 and of $15, and to hire someone who had “If you’re around somebody who’s 12,000 people are paroled in a given been in prison. ghting in your corner ... that alone year, data show. Birky tutored in prisons during his is priceless,” he said. It’s di cult to say de nitively that junior year at Princeton University, Lindsay VanHulle: (517) 657-2204 the increased approach toward ob- where he wrote a senior thesis on Twitter: @LindsayVanHulle calderonelight.com taining post-prison employment — American prison policy. He has an CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 17
today than it was 100 years ago. ductive. JOBS Today, Ford can accommodate the Instead, the new administration Celebrating ÷ú Years! FROM PAGE 3 rapid pace of innovation, reinvest in must focus on programs and policies longer supply chains and the abili- the top engineering talent and add the that place more emphasis on what ty to manufacture things farther from best features customers demand and we’re really good at — R&D, design where they would be sold. Low-cost still make a pro t, thanks to low-cost and testing. e U.S., thanks to Michi- countries, like Trump’s favorite tar- labor. gan, has the biggest R&D investment, get, Mexico, were the recipient of new Automakers, suppliers and other the most engineers and the most pat- assembly jobs as the need for rein- manufacturers have the bene t of a ents. Ensuring manufacturers have the vestment in technologies became a delineated enterprise with clear dis- best talent at labs, tech centers and larger portion of a manufactured tinctions between research and devel- sales o ces is far more important than product’s retail cost. opment, design, marketing, supply re-establishing the U.S. as a manufac- “Resolving your money matters” e fact remains, however: Manu- chain management and assembly. turing powerhouse. ose functions facturing didn’t leave; it changed. e latter of which is the easiest part of provide far more value to the chain of In 1991, as many as 234 million the process thanks to technology and, manufacturing, adding more pro ts, people in developing countries well, practice. We’ve now been mak- more bonuses and larger salaries. A national leader in revenue cycle management and worked in manufacturing, according ing things for a very, very long time. e U.S. doesn’t need to reinvent call center services. We offer state-of-the-art to the United Nations Industrial Devel- Politicians like President-elect the wheel here. Look to Germany, technology along with proven recovery strategies to opment Organization. By 2014, that g- Trump play to a populist din against where dual-training programs — ap- provide consistently superior results for our clients. ure grew to 304 million. In developed globalization and o -shoring because prenticeships split between the class- countries, like the U.S., only 63 million it’s an easy sum to calculate. We have room and the workplace — are com- We offer a range of national recovery customized people worked in manufacturing. fewer manufacturing jobs, they have monplace. In the U.S., fewer than 5 Yet, the U.S. is still rich, and Mexico more. ey stole our jobs. percent of people young adults are in services as well as first party, early-out, primary, and others are still, by our standards, But chasing the return of manufac- apprenticeship programs. In Germa- secondary, tertiary, billing services, bill pay & call poor. turing jobs, particularly assembly jobs, ny, that gure is closer to 60 percent, center services with vast experience in all industries. Assembly jobs are not making will not Make America Great Again. It and such programs span elds such as those countries rich, just as they didn’t would do the opposite, in fact. Re- manufacturing, IT, banking, etc. Serving some of the largest utility companies, health make the U.S. rich. Innovation did. sources to throw at economic devel- By 2020, the U.S. is predicted to be systems, financial institutions, government entities, One of the greatest myths in manu- opment are limited. Spending them short 5 million workers with the nec- educational institutions in Michigan and across the facturing, particularly ingrained in on low-paying, low-skilled jobs is a essary skills to succeed in high-growth Southeast Michigan folklore, is that mismanagement of those resources. industries, according to the George- United States. We also serve small businesses’ with our Henry Ford started to pay his assem- Going all in on a race to the bottom. town University Center on Education small business dedicated team. bly workers $5 a day, double the aver- Are we aspiring to be more like and the Workforce. at will be exacer- age wage, in January 1914 so his work- Mexico? More like ailand? Assem- bated in places like Michigan that have ers could a ord to buy a Ford car. is bly jobs didn’t save their economies, a burgeoning mobility sector. wasn’t the case. Ford hired more than which continue to su er from nan- e Trump administration is better 52,000 a year earlier ... to keep 14,000 cial inequality far greater than the U.S. served using its time to streamline re- jobs lled. e conditions of Ford’s e jobs being created — not training programs and nd new ways plants were so deplorable, workers brought back — by GM, Ford and FCA to advance them. So let’s not join the L J Ross Associates, Inc. were quitting faster than he could hire. are a drop in the bucket of the million populism and continue to focus Mich- 4 Universal Way, Jackson, MI 49202 (517) 719-2247 Ford knew turnover cost money. Pay- or so manufacturing jobs lost over the igan on growing its manufacturing [email protected] ing more made economic sense. past 30 years. Policies that further prowess — by creating more design- www.ljross.com Advancements in the assembly plague our manufacturers with creat- ers, engineers, lab technicians, 3-D line, which also started operation in ing more and more low-wage assem- printing machine operators, etc. 1913 at Ford, made carmaking less bly jobs in the U.S. is dangerous and After all, we’re really, really good at strenuous and improved conditions. It challenges manufacturers’ competi- making stu . Let’s focus on the jobs of also required fewer and fewer laborers tiveness. Workers want to work for the future that add more value — and over time. competitive, pro table companies. pay better. Innovation created customers, but Altering their ability to do so through Dustin Walsh: (313) 446-6042 cost the workforce. at’s no di erent unnatural regulation is counterpro- Twitter: @dustinpwalsh
viewed by Crain’s. Data on $500 pur- is less supply for the auctions. AUCTION chases for 2015 and 2011 was not Investors who spoke with Crain’s FROM PAGE 3 available. said they plan to renovate the homes Detroit and Highland Park, or an av- However, as a percentage of total and rent them out if they are unoccu- erage of $3,646 each. Hagerman’s property sales, the number of $500 pied, or rent or sell them to current father, Steve, said his company has properties sold has remained fairly occupants if a deal can be reached. In been among the top ve buyers the consistent, with those properties certain cases, evictions are expected. last several years, and its 2016 haul comprising 28 percent of the foreclo- Jasmine McMorris, whose De- was its largest purchase to date. sure auction last year. In 2014, it was troit-based Great Lakes Property and e man who oversaw the auc- 13 percent — when there were the Investment Inc. bought 106 properties tion, Wayne County Treasurer Eric most properties up for auction since in the 2016 auction for about $700,000 Sabree, said the county is getting 2011 — while it was 26 percent in at an average of about $6,600 each, more per property than it has in re- 2013 and 24 percent in 2012, a Crain’s said she plans to have her in-house cent years. analysis shows. contractors renovate the homes she “People feel the city is coming In part, said Darin McKleskey, a purchased in Detroit. She declined to back, and they are willing to pay more Detroit real estate investor who bought disclose her investors. because they are hopeful the value 44 properties at auction last year, part “We are not ippers. We hold all of will keep going on,” he said. of the issue is that investors are “strug- our collateral, and we are renovating Since the 2011 property tax auction, gling to make sense” of whether it’s and do mostly market rate,” she said. the average purchase price per proper- worth it to buy a $500 home when tax- “Our goal is to clean them out, rent ty has risen 54 percent from $3,539 to es in the city are high and renovation them up,” said Arlen Miin, an On- $5,455 last year. e highest average in costs can be overwhelming. tario-based representative for a group the last six cycles was in 2015, when it But McKleskey, a real estate sales- of undisclosed investors operating as was $5,830 across the 9,500 properties person and managing partner of De- an entity called 1522125 Ontario Inc. sold, bringing in $55.39 million. troit-based Denovo Real Estate LLC, said “We don’t have plans to ip any- In the most recent foreclosure auc- he’s seen value in those properties. thing.” tion last year, 5,974 properties were According to McKleskey, a home Miin, whose investors bought 44 sold, and 1,672 went to bidders who on Melbourne Street in the North End properties in Detroit, Taylor and bid $500, the minimum a property neighborhood next to the New Cen- Dearborn Heights for about $56,000 can sell for at auction, according to a ter area purchased by a nonpro t for (average of $1,273), said his investors Crain’s analysis of the auction results. $500 recently sold for $75,000 without ramped up their purchases in the at’s substantially fewer than the “a whole lot of work on it.” 2016 auction because of a better se- 2,284 in 2014, 2,719 in 2013 and 2,863 He also said fewer properties are lection of property. in 2012, according to data from De- going into foreclosure because of an Kirk Pinho: (313) 446-0412 troit-based Loveland Technologies re- improving economy, meaning there Twitter: @kirkpinhoCDB 18 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017
dens in North Carolina. FAIRLANE e “velvet-ropes” tour many his- FROM PAGE 3 toric homes o er has traditionally www.crainsdetroit.com character and physical integrity of been too passive and at, he said, the oor. providing exactly the same experi- Editor-in-Chief Keith E. Crain Executive Vice President KC Crain e rst workshop is nearly lled ence each time someone visits and Publisher/Editor Ron Fournier, (313) 446-1674 or and is already attracting out-of-state leans across the roping to peer into a [email protected] interest with attendees from Penn- room. Group Publisher Mary Kramer, (313) 446-0399 or [email protected] sylvania. If the experience is boring, visitors Director, Digital Strategy, Audience Development e workshops are yet another won’t come back, and they’re not Nancy Hanus, (313) 446-1621 or [email protected] way the restoration process is being going to bring their friends, Vagnone Managing Editor Michael Lee, (313) 446-1630 used to educate, Mullins said. An ap- said. or [email protected] Managing Editor/Custom and Special Projects prentice works with experienced ex- e traditional historic house tour Kristin Bull, (313) 446-1608 or [email protected] perts on detailed restoration, and “is like being invited to your friend’s Digital Editor Carlos Portocarrero (313) 446-6056 or students from University of Michi- house for dinner and being made to [email protected] and the stand in the hall while they tell you News Editor Beth Reeber Valone, (313) 446-5875 gan-Dearborn University of or [email protected] Detroit Mercy have been invited in as about dinner for 20 minutes,” he Research and Data Editor Sonya Hill, (313) 446-0402 well. said, when what you really want is to or [email protected] “One of the jobs under the resto- eat dinner. Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766 ration is to make it a learning experi- HENRY FORD ESTATE INC. Historic homes are in the busi- ence,” she said. The historic Fair Lane mansion in Dearborn has been undergoing renovations ness of engaging people. at mis- REPORTERS “It’s not common to have (a proj- including xing leaking roofs and bowing walls. sion and their need to create reve- Tyler Cliord, breaking news. (313) 446-1612 or ect) of this magnitude in one’s back- nue to help support the maintenance tcli[email protected] yard.” tainable; donors want to see some- sylvania and Leslie Curtis Designs in of the historic property necessitate Annalise Frank, breaking news. (313) 446-0416 or [email protected] thing that’s sustainable.” Maine. high levels of engagement with visi- Jay Greene, senior reporter Covers health care. Closing and rebirth e nonpro t acquired a standing tors, said Vagnone, who has over 20 (313) 446-0325 or [email protected] Shoring up the structure 1915 Edison phonograph and 50 re- years of experience in managing his- Chad Livengood Covers Detroit rising. (313) 446-1654 or [email protected] Fair Lane closed to the public in cords from that era for the corner of toric homes in Philadelphia and Kurt Nagl Breaking news. (313) 446-0337 or knagl@ 2010 as the costs to maintain it be- Early renovations begun in 2014 the room on eBay after discovering New York and co-authored “Anar- crain.com gan to rise and structural problems targeted urgent infrastructure issues, records indicating one had existed in chist’s Guide to Historic House Mu- Kirk Pinho Covers real estate. (313) 446-0412 or began to stack up. including rebuilding the retaining the room, Heppner said. seums.” [email protected] Bill Shea, enterprise editor Covers the business of Following Clara’s death in 1950, wall along the banks of the Rouge “You can sit and spend as much Standing and listening is one dis- sports. (313) 446-1626 or [email protected] three years after Henry, most of the River abutting the estate grounds time as you want ... pick up a book or tinct activity, but it’s also important Lindsay VanHulle, Lansing reporter. (517) 657-2204 estate’s furnishings were auctioned and redoing the roofs and founda- a magazine. You will now be part of to let visitors sit on the furniture, or [email protected] o . From about 1951 until 1956, tions on the house and powerhouse. that storytelling,” Mullins said. open doors and listen to the radio or Dustin Walsh, senior reporter Covers economic issues. Ford (313) 446-6042 or [email protected] Motor Co. used the mansion as oc- Inside the mansion, bowing walls As part of the rst phase of its record player, he said. Sherri Welch, senior reporter Covers nonprots and es and archives before Henry Ford II, were xed and exploratory work was work, the estate is restoring nine “We need to expand the number philanthropy. (313) 446-1694 or [email protected] grandson of the home’s original done to remove layers of paint from core rooms on the rst level, with a of distinct activities visitors can do. ...
ADVERTISING owner, helped broker the agreement parts of the ornate, carved wooden goal to have them completed by the e hypothesis is if we engage visi- Sales Inquiries (313) 446-6032; FAX (313) 393-0997 to transfer it to the University of Mich- panels on the living room’s walls and end of this year and refurnished by tors in a normal fashion, they will be Director of Sales Lisa Rudy igan to establish a Dearborn campus. stenciled ceilings in the billiards 2020. franchised to enjoy the site at a more Senior Account Manager Katie Sullivan UM opened the house to public room and the built-up wax and e next phase of the restoration intimate level and bring people Advertising Sales Christine Galasso, Gerry Golinske, tours, operated a restaurant in its grime from a small area of the grand will move the estate’s powerhouse b a c k .” Diane Owen Classied Sales Manager Angela Schutte, former swimming pool room (the oak staircase to uncover a rich, warm (where Ford worked on new inven- But the experiential approach (313) 446-6051 pool had been lled in by the auto- hue. tions) and multiple greenhouses to isn’t just about letting people come Classied Sales Lynn Calcaterra, (313) 446-6086 maker) and used some rooms as of- In the attic, the nonpro t found get them restored for tours and oper- in and sit on reproductions of furni- Marketing/Events Director Kim Winkler ces up until its transfer to the new three chandeliers from the music ating to help care for the estate’s 18 ture. Events Manager Kacey Anderson Senior Art Director Sylvia Kolaski Henry Ford Estate nonpro t in 2013, room stored decades earlier, win- acres. What Henry Ford Estate is doing Special Projects Coordinator Keenan Covington three years after it closed to the pub- dows for the billiards room and wall As it continues with renovations, provides the opportunity for new Sales Support Suzanne Janik lic. sconces for the main stairway, said the estate is also working with Wash- levels of physical engagement which Media Services Director Geof Innis Media Services Manager Hussein Abdallah UM contacted Mullins, CEO of the Mark Heppner, vice president for ington, D.C.-based museum plan- will open up a possibility of a wider Edsel & Eleanor Ford House in Grosse historic resources. ning and design rm Gallagher & As- narrative engagement, Vagnone CUSTOMER SERVICE Pointe Shores, after realizing it could To create a model for what it plans sociates, the same consultant said, going beyond a speci c year Main Number: Call (877) 824-9374 not fund the capital restoration for the rest of the estate, the nonprof- working with the Motown Museum on and into things like the labor issues or [email protected] needs of the estate by itself, it began working in earnest in the its expansion, to create the tour ex- between Ford and his assembly line Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 UM-Dearborn Chancellor Daniel sun room, redoing the ceiling, re- perience for the home when it workers. per year to out-of-state rate for surface mail. Call (313) Little said at the time. storing its limestone and stonework opens. “ is notion of income and equal- 446-0450 or (877) 824-9374. Henry Ford Estate, which now on the walls before restoring the “We want to humanize (Henry ity is an important one to have as Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at shares an administrative team with light xtures and taking it back to a and Clara),” Mullins said. “ is is you’re walking through Fair Lane; it’s [email protected] the Edsel & Eleanor Ford House, has muted color akin to its original something houses allow you to do ... relevant even today as the new (U.S.) To nd a date a story was published (313) 446-0406 since launched an international shade. bring them to life in their environ- president is sworn in.” or e-mail [email protected] campaign to raise $50 million in two While some of the home’s original ments.” Sherri Welch: 313 (446-1694) Crain’s Detroit Business is published by phases to support renovations, pro- furniture has returned to the estate e experiential approach is Twitter: @SherriWelch Crain Communications Inc. gramming and operation of the es- through donation or acquisition, something historic houses across Chairman Keith E. Crain tate. most has not. the country are just beginning to President Rance Crain To date, it has raised nearly $14 Family movies, pictures and volu- dabble in, but most aren’t doing it as BANKRUPTCIES Treasurer Mary Kay Crain Senior Executive Vice President William A. Morrow million from the Ford family, Ford minous receipts kept for the home holistically as Henry Ford Estate, e following businesses led for Executive Vice President/Director of Strategic Motor Co., Ford and Lincoln dealers provided a map to the way it looked a said Franklin Vagnone, president bankruptcy protection in U.S. Bank- Operations Chris Crain across the U.S., and others, Mullins century ago, and Henry Ford Estate and CEO, of New York-based inter- ruptcy Court in Detroit Jan 13-Jan 19. Executive Vice President/Director of Corporate Operations KC Crain said. e goal is to complete the rst tapped about 18 artisans from near national historic house consultancy Chapter 7 involves total liquidation. Vice President/Production & Manufacturing phase of the campaign by 2018 and and far to recreate every aspect of Twisted Preservation Cultural Consult- 1st Stop Auto Care LLC, 21231 Kai- Dave Kamis then move into the second phase of the room. at included everything ing and the incoming president and ser, Gregory, voluntary Chapter 7. Chief Financial Ocer Bob Recchia raising an additional $25 million. from the wicker furniture to the CEO of Old Salem Museums & Gar- Assets: $0; liabilities: $60,053.85. Chief Information Ocer Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) Ten cents of every dollar is going carved marble urns, Austrian shades Mrs. G.D. Crain Jr. Chairman (1911-1996) toward an endowment to sustain the and Oriental-inspired carpeting can Editorial & Business Oces house into the future. take up to two years to make, from INDEX TO COMPANIES 1155 Gratiot Ave., Detroit MI 48207-2732; e Edsel & Eleanor Ford House, design to nish, Mullins said. (313) 446-6000 These companies have signicant mention in this week’s Crain’s Detroit Business: once owned by Henry Ford’s son, Birmingham-based Hagopian, Pe- Alta Equipment Co. 1 Ford Motor Co. 3, 10 Cable address: TWX 248-221-5122 AUTNEW DET has a sustainable operating model, wabic Pottery, David Ellison Ceramic CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly thanks to $15 million Eleanor left to Art in St. Clair Shores and Michigan Arte Express Detroit LLC 1 General Motors 3 , 10 by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional maintain the estate after her death in Design Center in Troy are among the Brick Home Management 3 Henry Ford Estate Inc. 3 mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S 1976. local organizations that worked on C.H. Robinson Worldwide Inc. 12 KPMG Private Markets Group 8 DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, “What we’re doing is that same elements of the room. MI 48207-9732. GST # 136760444. Printed in U.S.A. philosophy. ... It allows us not to Others tapped were further away, Conway MacKenzie 10 Lazlo LLC 1 Contents copyright 2017 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner have to depend on fundraising,” like Zeeland Architectural Compo- Detroit Institute of Arts 4 Miller Caneld Paddock Stone PLC 11 without permission is prohibited. Mullins said. “We have an obligation nents, Capitol Stoneworks in Bridge- Ernst & Young 10 Pages Bookshop 8 to make sure these places are sus- port, Heritage Metalworks in Penn- Fiat Chrysler 3, 10 Source Booksellers 8 CRAIN’S DETROIT BUSINESS // JANUARY 23, 2017 19 THE WEEK ON THE WEB RUMBLINGS JANUARY 14-20 Lear CEO says he’s not vehicles, as GM said it is moving planning run for governor Mullany’s departure Detroit Digits some axle production in-house. linked to resistance J Detroit-based StockX, which was e rumors continue to circu- to cost-cutting A numbers-focused look at last co-founded by Dan Gilbert last Feb- late: Will Lear Corp. CEO Matt Si- week’s headlines: ruary and bills itself as “the world’s moncini run for governor of Michi- Joe Mullany was replaced last rst online consumer ‘stock market gan? week as CEO of Detroit Medical Cen- $2.4 million of things,’” is partnering with Gil- Simoncini has been urged by ter partly because he refused to lay The federal funding granted to bert’s Cleveland Cavaliers and Nike to prominent local politicians to take o more employees the past two the Detroit Wayne County sell a LeBron James-centric champi- a look at a gubernatorial run after years and the hospital system’s cor- Port Authority to buy ferry onship package that is drawing bids Gov. Rick Snyder leaves o ce in porate parent was unhappy with a boats seven years ago. The grant in the thousands. 2018. But, so far, he’s not express- contract with Wayne State University application said they would be J Yanfeng Automotive Interiors, a ing interest. Matt Simoncini: Bill Cobbs: medical school and spending to x purchased within 12 months. joint venture interior supplier, will “I am honored to be considered Will stay at Lear, Launches bid for problems with dirty surgical instru- invest $8.45 million to develop a new as a good potential candidate by not run for oce. governor. ments, people familiar with the situ- 46 percent headquarters in Novi, while Kerkstra people I respect,” Simoncini told ation told Crain’s. The amount of foreign Precast Inc. will invest more than $16 Crain’s in an email. “However, I Bill Cobbs, an executive coach- e moves have raised concerns investment received in Oakland million in its Trenton facility, the have a great job running Lear and ing consultant in Farmington Hills, that further cost-cutting may be on County, out of its total $810 state announced. e two develop- have no plans to run for any public has launched a bid for the Demo- the way and that budgets for capital million in private business ments plus another in Litch eld in o ce.” cratic nomination for governor. spending and maintenance could be investment for 2016. The county southwest Michigan will create a to- Simoncini has served as presi- Cobbs, 63, is owner of Perfor- on the chopping block at the De- received more than $1 million a tal of 148 jobs, according to a news dent, CEO and board director of mance Dynamics, a rm that helps troit-based hospital system, the day of international investment, release from the Michigan Economic the South eld-based supplier groom executives for Fortune 500 state’s largest provider of Medicaid marking the third consecutive Development Corp. since 2011, formerly serving as companies. and indigent care. year of growth. J Billionaire investor Carl Icahn will CFO. In recent years, he’s been a e Detroit native spent his ca- Mullany, who the sources said take full ownership of South- champion for the city of Detroit — reer in management roles in soft- may have delegated authority too 84 eld-based auto parts supplier Fed- serving on the boards of directors ware and technology companies. much and bucked his bosses at Dal- The number of jobs to be eral-Mogul Holdings Corp. in a roughly for the Wayne State University Foun- Cobb told Crain’s his campaign las-based Tenet Healthcare Corp., is eliminated when the Sears store $300 million deal. Icahn Enterprises dation, Detroit Economic Club, Mich- platform is focused on boosting in- also one of the rst of several top in Grand Rapids closes its doors LP, through his indirect whol- igan Opera Theatre, Downtown De- vestment in K-12 schools, strength- corporate executives to be cut in a on March 26. Sears Holding Inc. ly-owned subsidiary IEH FM Holdings troit Partnership, Bing Youth ening the state’s water policies, in- national restructuring plan at Ten- also announced the closure of 10 LLC, sealed the deal after Feder- Institute and the Mayor Mike Dug- vesting more money in et. e plan to cut corporate over- Kmart stores earlier this month al-Mogul’s second-largest share- gan’s Workforce Development Board. infrastructure and ending tax in- head costs calls for Tenet to reduce as part of a nationwide plan to holder Gabelli Asset Management One Metro Detroit businessman centives for large corporations. the number of its markets and re- close 150 stores. Company Investors tendered 7 mil- isn’t hesitating to jump into the “We would stop doing all of gions from 13 to 10 or fewer, sources lion shares to Icahn, providing race for governor. these incentives,” Cobb said. said. enough shares to take over the pub- Tenet and DMC o cials declined ing organization G+S Laboratory. lic company outright, Bloomberg re- to comment or address reasons why NSF would not disclose the purchase ported. Mullany has been replaced by Tony price, which is its second acquisition Tedeschi, M.D., an executive from in Germany in as many years and its OTHER NEWS Tenet’s Chicago market. Tenet also third recent acquisition in Europe. J e American Center for Mobility declined to address regional restruc- J La Rondinella Italian restaurant in self-driving vehicle test bed under turing. Detroit’s Eastern Market closed after construction in Ypsilanti Township only a year of serving up upscale Ital- has been designated as a proving COMPANY NEWS ian fare, and Supino Pizzeria — right ground for the federal government’s J Detroit's Little Caesars Arena will next door to La Rondinella, both development of driverless cars. Fed- open in September with four shows owned by Dave Mancini — will be eral transportation administrators by hometown musician Kid Rock. taking its place in an expansion of made the announcement on e $635 million building will be a the more laid-back pizzeria. ursday. e $80 million, 300-acre CHRISTOPHER DENSLOW concert venue, as well as the home J Engineering and IT sta ng pro- site is among 10 U.S. facilities select- The UAW-GM Spirit of Detroit HydroFest will bring speedy hydroplane boats to of the Detroit Red Wings and Pistons. vider Kyyba Inc. has purchased all ed for the program. the Detroit River in August. J Costco Wholesale Corp. has agreed sta ng contracts belonging to ASG J Michigan’s businesses should to pay nearly $12 million to settle Jus- Renaissance, a Dearborn-based now nd it easier to manage taxpay- tice Department allegations of lax company focusing on technical and er transactions after the Michigan De- Backers reorganize pharmacy controls. e case grew out communication services. Kyyba ac- partment of Treasury announced that of separate investigations conducted quired the entirety of ASG’s sta ng it has launched an improved web- by federal authorities in Michigan, arm, including employees, clients site. e site allows rms to upload Gold Cup hydrofest race Washington and California. and equipment, but ASG will contin- wage documents, submit fuel credit Backers of the annual hydrofest tickets, branding, hospitality and J Ford Field’s Wi-Fi upgrade should ue its other projects — namely mar- refunds and use other services. race on the Detroit River are reorga- the usual title sponsor perks found be complete for the entire stadium keting and consulting — with exist- J e city of Detroit narrowed its nizing the event and its sponsorship at sporting events. ere also are by the start of the 2017 season, the ing customers. Other terms of the search for a developer for a vacant structure as it seeks a new corporate smaller sponsorship levels at Detroit Lions said on ursday. Fix- deal were not disclosed. 7-acre site in Midtown to build new underwriter. $25,000 and $50,000. Some hospi- ing the 64,500-seat stadium’s notori- J Habitat for Humanity Detroit laid apartments. e nalists to redevel- e Detroit-based UAW-GM Cen- tality packages are priced at $7,500 ously dodgy wireless service has o most of its employees and closed op the former Wigle Recreation ter for Human Resources has ended and $14,000, and Weber said com- been a priority for team President its two Habitat Detroit ReStore loca- Center site at 901 Selden St., just its title sponsorship of the APBA panies such as automotive suppli- Rod Wood. tions to deal with nancial prob- east of the Lodge Freeway, are joint Gold Cup hydroplane boat race after ers — which don’t typically market J Two of Dan Gilbert’s top develop- lems. Habitat said in a written state- ventures between Livonia-based two years, and at least three compa- to the general public — can use ment executives are no longer going ment that a 40 percent delinquency Schostak Bros. & Co. and New York nies are interested in replacing it in such packages to entertain clients to be involved in some of his biggest rate among homeowners who had City-based Rheal Capital Manage- that role, said Mark Weber, presi- and reward employees. construction projects in Detroit. purchased its homes, a high number ment LLC, and Douglass Diggs and dent of race organizer Detroit River- “ at’s another way to get ROI for Steve Rosenthal is giving up his du- of empty homes in its portfolio and New York City-based developer Pro- front Events Inc. your support. ere are many ways ties as principal of Gilbert’s Bedrock losses at the retail stores had forced cida Cos. LLC. Plans for the 2017 event, sched- to participate,” Weber said. LLC real estate development and the restructuring. J Almost two dozen Detroit appli- uled for Aug. 26-27, are to split the He’s con dent a sponsor will be management rm. He and an asso- J General Motors Co.’s plan to invest cants are among 144 nalists in the weekend into two separate races in- in place to cover costs, and his goal ciate, Je Cohen, will turn their at- $1 billion into U.S. factories and add third and nal installment of the stead of one race over two days, We- is to unveil the name and details in tention to Rock Cos., a company they thousands of jobs comes at the ex- Knight Cities Challenge, a competi- ber said. Additionally, sponsorship late March or early April. Ticket founded together. pense of one Detroit supplier. Ameri- tion to fund ideas to stimulate com- costs are being reduced, he said. prices will be set then. J NSF International, a global public can Axle & Manufacturing Holdings munities. Some 21 Detroit projects e title sponsorship for the Gold “We have companies that have health and product testing company Inc. is losing part of its business to will be considered by the John S. and Cup race is pegged at $150,000 and shown interest,” Weber said. He de- based in Ann Arbor, has acquired supply GM’s next-generation full- James L. Knight Foundation to receive the new second race is $100,000, clined to name the companies be- German-based food and water test- size pickup trucks and sport-utility a share of a $5 million grant. Weber said. ose amounts buy cause they’re still in talks.