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Gilbert, others push in Lansing to broaden tax-capture funding for big projects, Page 3 SEPTEMBER 19 - 25, 2016

An impromptu dance-oŽ includes “Hamilton” producer Jerey Seller (fourth from le’) on stage at an Homecoming event last Thursday as Mike Ellison (center with microphone) performs.

More inside n Detroit Homecoming, in ‘A place of interest’ words and images, Ballmer talks Detroit pride, poverty, philanthropy Page 20 n Room at the Shinola hotel Steve Ballmer balled his sts and script is at crainsdetroit.com. about that, too. Lawrence Tech was inn? brings more rooms pounded the table, rattling silver- I want to talk about generational pretty big. downtown, ware and water glasses in a private poverty and government reform, but Those are two institutions that Page 21 room of a downtown restaurant. I think I would like to start in Detroit. helped shape the man you became. n Coming Sept. “It’s attackable,” he bellowed, … I have heard you have been very in- Are there other institutions that you 26: Detroit 2.0 “and it should be attacked!” volved in Detroit Country Day, but look back on and say … ? tallies the outcomes e Detroit-born retired Micro- just very quietly. Steve: Franklin Hills Country Club, and outlooks from so CEO made famous for his vocal Steve: Yes, I have been very in- where I was a caddie. three years of exuberance for “developers, develop- volved in Country Day. Tell me about caddying for (mall Detroit ers, developers” had another passion Will you tell me what you have developer Al) Taubman. Homecoming. in mind while eating lunch last week Steve: I won’t say anything about been doing with them? Because it nMore news: Will with his wife, Connie, and Crain’s De- has not been written up at all. that, you won’t hear a word about Leather expansion, troit Business Associate Publisher Steve: And it won’t be written be- that from me today. (Laughs) “Hamilton” to come Ron Fournier: Attacking intergenera- cause I asked them to make sure it What was it like caddying in gen- to Detroit and more, PHOTOS BY AARON ECKELS tional poverty through philanthropy. didn’t get written up. (Laughs) eral there? Page 22 Retired Microso CEO Steve Ballmer spoke at the third is is a heavily edited transcript Lawrence Tech, as well? Steve: To me, that was actually Detroit Homecoming last week. of their discussion. e full tran- Steve: And Lawrence Tech. I forgot SEE BALLMER, PAGE 21 Douglass-Market plan builds on lessons learned from history By Kirk Pinho been there only a month when he high-rise devel- [email protected] started representing tenants in what opments ware- Richard Baron was fresh out of law would become the St. Louis public housing low-in- school at the University of housing rent strike of 1968-69. come people to a when he moved to St. Louis for a Legal His career, rst as an attorney and more mixed-in- Aid Society fellowship in the fall of then as one of the nation's leading af- come approach 1968. fordable housing developers, follows that groups resi- Baron, then a blond-haired young an almost parallel track with the coun- dents from a vari- The Douglass-Market plan man from the east side of Detroit, had try’s as it shifted away from large-scale ety of economic renderings show diverse backgrounds. Richard Baron architecture. © Entire contents copyright 2016 Which helps by Crain Communications Inc. All rights reserved get us to today, as city ocials and de- crainsdetroit.com Vol. 32 No 38 $2 a copy. $59 a year. velopers work on a $416.6 million plan for more than 1,000 units of mixed-in- the one proposed for the Brew- country’s largest aordable housing come housing across 25 acres of great- ster-Douglass site “changed the whole developers. er land, primarily economic base of these communities Of course, that’s not the only im- on the former Brewster-Douglass by giving them more buying power, al- provement. housing projects site, but also a trio of lowing retail services to come in,” said “It drastically reduced policing is- others in Eastern Market and Brush Baron, now in his 70s and chairman sues for local departments and was a NEWSPAPER Park. and CEO of St. Louis-based McCor- much more stable situation.” Mixed-income developments like mack Baron Salazar Inc., one of the SEE DOUGLASS, PAGE 18 2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 nia-based attorney and former Michi- caregivers would pay a 3 percent tax MICHIGAN gan Attorney General Mike Cox in the on their gross retail income. INSIDE U.S. District Court for the Western Dis- n Michigan’s estimated median THIS ISSUE trict of Michigan in Kalamazoo. Be- household income was $51,084 in CALENDAR ...... 15 sides Ferguson and Bernero, also 2015, up 2.4 percent from 2014 and, CLASSIFIED ADS ...... 17 named were the Lansing Economic factoring ination, the state’s biggest DEALS & DETAILS ...... 15 KEITH CRAIN...... 6 Area Partnership, LEAP President and increase since 1999, according to U.S. CEO Bob Trezise, Ferguson’s partner Census data released last week, MLive. MARY KRAMER ...... 6 OPINION ...... 6 BRIEFS Frank Kass and their joint develop- com reported. Adjusted for ination, PEOPLE ...... 16 Corrine Miller, the former director ment company on the project, Fergu- Michigan’s median household in- U.S. Senate OKs water bill RUMBLINGS ...... 22 of disease control and prevention at . come had been trending down since with millions for Flint son-Continental LLC WEEK ON THE WEB ...... 22 the Michigan Department of Health In 2012, the Jeromes proposed the 2000 and hit bottom in 2012 but since e U.S. Senate approved a $10 bil- and Human Services, pleaded no con- mixed-use Capital Gateway project, has increased by 5.6 percent beyond lion water projects bill last week that test to a misdemeanor of willful ne- which included two former car dealer- ination. COMPANY INDEX: includes emergency funding for Flint glect of duty in exchange for prosecu- ships and the former Red Cedar Golf n Johnson Technology will add 100 SEE PAGE 21 — nearly a year after ocials declared tors dropping felony misconduct and Course, the lawsuit says. e Jeromes jobs and invest $14.5 million in a third a public health emergency because of conspiracy charges. A denitive con- say they were forced to consider Fer- Muskegon-area aviation engine manu- Michigan corporate headquarters in lead-contaminated water. e mea- nection between the river water and guson and Charles Clark, of Lan- facturing facility, MLive.com reported. Walker, MLive.com reported. e sure goes to the House, where approv- Legionnaires’ has not been made, but sing-based Clark Construction Co., as e Muskegon-based military and avi- 5,000-square-foot museum includes al of a similar bill — minus the Flint many experts believe it was the cause. development partners who demand- ation engine component manufacturer memorabilia and artifacts collected by provision — is expected as soon as this ed Bernero give Ferguson’s team con- plans to convert a warehouse into a the corporation, the Meijer family and week, AP reported. Lawsuit: Ferguson, Bernero trol of the project and cut the Jeromes manufacturing plant in Norton Shores former employees. e Senate measure would autho- out. Ferguson and Bernero denied to be ready by Jan. 1. Johnson employs n Michigan’s jobless rate was un- rize 29 projects in 18 states for dredg- ‘stole’ Lansing project wrongdoing. nearly 700 people in Michigan. changed at 4.5 percent in August from ing, ood control and other projects Joel Ferguson, developer and chair- n Meijer Inc. is chronicling its 82- July, remaining at its lowest level in 15 overseen by the U.S. Army Corps of man of the Michigan State University MICH-CELLANEOUS year history with the recent unveiling years, AP reported. e U.S. jobless Engineers. e bipartisan bill includes board of trustees, is accused of con- n Michigan would tax and regulate of a “Heritage Center” at the retailer’s rate was unchanged at 4.9 percent. $100 million in grants and loans to re- spiring with Lansing Mayor Virg Bern- medical marijuana in a tiered licens- place lead-contaminated pipes in ero to use their political inuence to ing system under legislation that won Corrections Flint and other cities with lead emer- “steal” an important development nal legislative approval and that is gencies, as well as $50 million to test project from two former partners. expected to be signed by Gov. Rick n In the Sept. 12 article “How to sell tickets to millennials,” the last names water for lead in schools and $70 mil- Developers Christopher and Leo Snyder, AP reported. e Republi- for Lindsey Pollak and Larisa Zade were misspelled, and it should have made lion for water infrastructure loans. Jerome led a federal lawsuit alleging can-controlled House last week voted clear that participants in the Museum of Contemporary Art Detroit’s Monster Meanwhile, Michigan’s former that Ferguson, Bernero and others for a main bill to require a state operat- Drawing Rally are artists of any age and not necessarily New Wave members. state epidemiologist acknowledged in have long engaged in racketeering — ing license to grow, process, sell, trans- n A Sept. 12 story titled “How to boost Detroit’s creative economy? First, a plea deal that she was aware of doz- rigging bids, bribery and extortion — port or test marijuana used for medi- take inventory” should have said the state’s arts and cultural funding through ens of cases of Legionnaires’ disease in culminating in Ferguson taking the cal purposes. Another bill claries that the Michigan Council for the Arts and Culture is expected to stay about the the Flint area around the same time $380 million Red Cedar Renaissance allowable marijuana includes same year. the city changed its water source to the project from the Jeromes, the Lansing non-smokable forms such as oils, food n A caption in the Sept. 12 issue should have said the musical “Carmen” is Flint River in 2014, but that she didn’t State Journal reported. items and pills. “Provisioning centers” taking place at . e show runs Oct. 15-23. report it to the general public. e lawsuit was led by Livo- that sell marijuana to patients or their

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By Dustin Walsh [email protected] e $825 million purchase of Au- burn Hills-based Continental Struc- tural Plastics Holdings Corp. by Ja- pan’s Teijin Ltd. is a strong indicator that environmental regulations are driving up value for makers of light- weight automotive parts. Announced last week, the deal for the composite materials supplier is one of the largest deals for a local com- pany this year and is expected to close in December. e price is eye-popping FILE PHOTOS for an automotive supplier — 10.25 Clockwise from top le: Mega-projects that could ll large brown eld sites such as the stalled Wayne County Jail site; the Pontiac Silverdome site; the times CSP’s earnings before interest, now-closed Summit Place mall; and the old Uniroyal site along the Detroit River. taxes, depreciation and amortization, a common way of valuing a deal. e multiple represents one of the highest in the automotive industry in recent years. e price tag also represents a boon for majority owner Scott Capital Browneld bonus Group and Florida Gov. Rick Scott, By Lindsay VanHulle Senate oats Gilbert-backed plan to let developers age introduced this month in the Sen- who purchased CSP in 2005 under his Crain's Detroit Business/Bridge Magazine ate. Called “transformational brown- investment rm Richard L. Scott In- and Kirk Pinho capture sales, income taxes for such projects eld projects,” the legislation would let vestments LLC. e investment is be- [email protected] developers use sales and income tax ing held in a blind trust while Scott LANSING — 's top lieu- Woodward Avenue and a new $1 bil- up lead, asbestos or other contami- revenue generated by visitors and res- holds political oce. tenant and economic development lion Major League Soccer stadium and nants, known as brown elds. Yet it’s idents of the new mixed-use proper- CSP is “a company on the forefront organizations around the state are other development proposed for the dicult to say with certainty what a ties to oset the costs that go into of the lightweight parts market,” said pushing a plan in Lansing to allow the site of the stalled Wayne County Con- plan like this might cost the state in preparing a dirty site for construction Fred Hubacker, executive director of capture of state sales and income taxes solidated Jail project on Gratiot Ave- revenue it otherwise would collect. — provided they invest a minimum Birmingham-based advisory rm to help pay for major redevelopment nue. And it rst would have to get past Gov. level of private capital into the project. Conway MacKenzie Inc. “It’s hard to projects. A statewide coalition is building be- , who does not believe in In Detroit, that would require a de- imagine any supplier commanding Such a plan could ease the path for hind the proposal, which supporters letting government pick private-sector veloper to put up at least $500 million that (price) multiple, but it’s a signi - massive projects Gilbert is planning in say is necessary to line up more - winners and losers. in private funding; smaller communi- cant sign of the con dence in the Detroit, including the redevelopment nancing options for projects that de- Gilbert’s umbrella company, Rock ties would require minimum thresh- (lightweight plastics) market.” of the 2-acre site that used to house the velopers traditionally have a hard time Ventures LLC, is lobbying for the eort, olds of $25 million to $100 million, e deal gives Teijin new North J.L. Hudson's department store on selling — those that involve cleaning which has resulted in a ve-bill pack- SEE BROWNFIELD, PAGE 18 SEE CSP, PAGE 17

MUST READS Pellerito Foods seeks to cook up space OF THE WEEK with city land deal, but process is slow Where the railroad tracks end By Sherri Welch [email protected] Current QLine terminus signals that there won’t be an extension A four-year process to acquire land anytime soon, Page 8 from the city of Detroit and a subse- quent loss of $10 million in annual hash brown business shredded the ex- pansion plans Pellerito Foods was cooking up at the time. Now, with bite-size contracts slowly helping to recoup that lost revenue, Pellerito is looking at beginning con- struction next year on a $14 million ex- pansion that will quadruple its process- A rendering of the planned Pellerito Foods expansion in Eastern Market. ing space. e expansion will position the Preliminary plans drawn up by Royal ing potatoes and other fresh-cut vegeta- 73-year-old Eastern Market company — Oak-based Stucky Vitale Architects bles and from 60 employees to 180 over already among the largest suppliers of call for a two-phase construction project ve years. fresh-cut potatoes in the country— for that will take Pellerito from 25,000 to To make the project viable, Pellerito even more growth. 100,000 square feet of space for process- SEE PELLERITO, PAGE 19 4 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 Q&A: GERRY ANDERSON DTE CEO’s concern: Energy reserve margin

Gerry Anderson believes Michi- What is the main problem facing excess supply, essentially, to deal with gan’s electric industry is at the start of a the industry? unpredictables. And the unpredictables fundamental shift in the way power is We’re trying to warn people that we are the economy spikes, or the weather produced and delivered. have something very fundamental un- spikes, or you lose a bunch of power Anderson, chairman and CEO of derway right now that will take time to plants in a region or all three of those Detroit-based DTE Energy Co., and oth- address, and if we don’t get after it, we’re happen simultaneously. er Michigan utility executives are warn- going to run into a problem. We need We’re going to build (capacity) for our ing policymakers policy in Michigan to address, most fun- customers. Consumers is going to build of an approaching damentally, reliability. ere are other for their customers. But the critical issue problem: at the aspects of this legislation that are im- in Michigan is: What happens for the 10 number of aging portant, but ... I’ll be honest with you, percent of the market that doesn’t have a coal-red power we’re going to keep building renewables company like us behind them? at 10 plants going of- and we’re going to retire our coal eet percent is served by marketers. ose ine within the and build a lot of new resources either marketers do not own power plants of next decade could way. But the one thing that needs to be any signicant dimension here in Mich- leave the state handled is the reliability. igan. short of the neces- What I keep telling legislators and sary electricity re- Gerry Anderson: What are reserve margins and why thought leaders is, you’ve got to realize a serves to power all Push on power are they an issue in the policy debate? couple things. First of all, it takes us a of their customers’ capacity. Reserve margins are critical to reliabil- long time to respond to this. We can’t needs. ity because electricity is not stored in any turn on a new plant next year. It takes Anderson last week met with Crain’s meaningful amount today. So that re- four years to permit and site and con- editors and reporters to discuss pending al-time supply and demand always have struct and start one of these up, so if energy legislation and one of the key to match, and if they don’t, you’re either we’re going to oset this, we’ve got to be policy issues still outstanding — what’s shedding load or your grid is going down moving now. often referred to as reliability, or ensur- — one of the two. So you keep a reserve ing that Michigan will have enough elec- margin, and the number across the Aren’t there already customers tricity to meet demand in a few years. country is 15 percent. People vary a little who have chosen to receive discounts He referred to a recent projection by bit from that, but you keep 15 percent SEE NEXT PAGE the Midwest’s grid operator, called the Midcontinent Independent System Operator, or MISO, that predicts the re- gion’s electricity reserve margin could fall short of a recommended 15 percent by 2018 and continue sliding through 2026. Yet MISO’s projection does not in- clude plans for any new power plants. A future without new plants isn’t likely. Anderson’s point, though, is that it takes utilities at least four years — if not longer — to plan for a new power plant. Anderson said DTE could be ready to pursue a new natural gas plant by 2020 or 2021. His concerns, which are shared by leaders of Jackson-based Consumers Energy, get at the heart of one of the most hotly contested pieces of the bills pend- ing in the state Legislature: electric choice. Specifically, Anderson said he is concerned that the 10 percent of Michi- gan electricity customers who are al- KEEP YOUR lowed to buy power on the open market are being served by some suppliers that AD FRESH don’t generate their own power, and thus WITHWITH CCRRAAIN’IN’S BBOOKOOK OOFF LLISTSISTS could create grid instability if they’re not required to have enough electricity be- YEAR-LONG SHELF LIFE ADDS VALUE TO YOUR yond a one-year supply. ADVERTISING EFFORTS Advocates for choice have said many READERS REFER TO IT $//<($5 alternative suppliers might be forced out PRINT EDITION of business if they’re required to have • Two-thirds of our readers say YES, they refer back to the Book of Lists multiple years’ worth of electricity re- • Over half of our readers consider Book of Lists a “must read” serves owned or under contract because • 97% of readers refer back to the Book of Lists more than four times a year they don’t generate their own power. ASK ABOUT sponsored list downloads and Website section Sen. Mike Nofs, R-Battle Creek, and one sponsorship opportunities. of the lawmakers taking the lead on the energy bills, recently told Crain’s he is Source: Signet considering language that might allow Total Audience Survey – Keeps Aug. 2015 & July 2016 alternative providers to count toward the fresh bill requirement electricity purchased on all year! a three-year auction MISO is considering offering in Michigan. Below is a condensed and edited ver- CONTACT: Matt Langan (313) 446-6032, ISSUE DATE: Dec. 26, 2016 sion of Anderson’s remarks. [email protected] CLOSE DATE: Oct. 31, 2016 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 5

FROM PREVIOUS PAGE on their electricity bills in exchange for having service interrupted when de- mand runs high? Interruptables are part of our reserve margin, so that’s one way to create a re- serve — if you’ve got people who say, “Well, I can go o .” We also take home- owners and cycle their electricity. We actually have the ability to punch o homes’ air conditioners. ... We’ll cycle it, 15 minutes o , 15 minutes on. And then there are (industrial users) who will also agree to be punched o . So the rst step, and what would have happened here, our rst step would have been to punch those people o . But here’s the issue, is when industrials sign up for that service, they don’t sign up to be interrupted be- cause 10 percent of the market is not be- ing covered. ey sign up thinking we’re going to establish a viable 15 percent re- serve margin and my odds of being in- terrupted are low. When people sign up for a discount, they should expect to be interrupted. But they shouldn’t expect to be inter- rupted a whole lot more than they signed up for because somebody else is failing to cover their part of the load re- quirement.

What year is the point of no return when it comes to a shortfall in re- serves? e region begins to go short in (20)18. And it’s shorter in Michigan, so if you’re looking for people to contract ahead if the region’s short, don’t look to (importing power).

Is there enough political will to pass Michigan energy legislation this term? People ask me that, like our investors, and I say, “I don’t know. It’s an uphill climb, but we’re still climbing.” It’s really hard to predict. e Senate’s closer than the House because Mike Nofs has been working it really hard. Employment Litigation Experience The worst-case scenario is that no legislation is passed this term. What ® happens next? We’re up against term limits (in 2018), In Your Corner. and I don’t know who the (energy) com- mittee lead will be, but you really could Ŷ Represents employers in litigation involving have a restart. And in the House, there all types of employment and labor claims. were an awful lot of voices. So one of the Ŷ Advises healthcare organizations in matters reasons we’re going around seeing peo- involving peer review activities, professional ple is we’ve got a window here, and at the credentialing and discipline. end of the window, I think we’re proba- bly done at the end of this winter. I am Ŷ Counsels employers regarding employment not sanguine that next year we just pick it policies, reductions in force and employment up and nish it o . agreements.

Is your goal ultimately for Michigan to return to a fully regulated market? I don’t want to say this the wrong way — I care about it for reliability, but for our prots, I don’t care about it. We’ve got plenty to do. We’re very busy with our 90 percent and things we’re doing outside of our utilities. I tell my investors ... our infrastructure is old enough, like a lot of infrastructure, that we’ve got more investment than we can really handle. A real throttle for things is customer a ordability and try- ing to make sure that we pace invest- ment with customers’ ability to absorb it, industries’ ability to stay competitive. Do I think the state would be better o with- First Tier Ranking in Labor Law – Management out the 10 percent and either/or? I’ve al- Health Care Law ways said the state should have made a choice, one or the other. Compiled by Jay Greene and Lind- Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Contact Terry Miglio at [email protected] say VanHulle 6 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 New, old Detroit must combine OPINION to become ‘now’ Detroit ike Ellison is a remarkable per- honor to say they’re from “the D.” But Mformer — an actor, a singer and it’s real and it’s powerful and it can a poet. And last week, when he per- produce the foundation for a catalytic Browneld bill formed at Detroit Homecoming’s “cre- reaction to reinvest. at’s the magic ativity showcase” at Orchestra Hall of Homecoming. ese former Detroi- (See photo on Page 1), he did what art- ters we invite to this special experience ists often do: He restated one of De- — whether they were raised in the city could be catalyst troit’s nagging issues in a powerful or South eld or Warren — think of way: We talk about “old” Detroit and MARY KRAMER themselves as “from Detroit.” arge-scale projects, especially in urban areas, often become a nanc- “new” Detroit, he rapped, but how Publisher Another lesson: You don’t have to ing morass with developers angling for tax breaks, low property ac- about “NOW” Detroit? live in Detroit to make a dierence. We quisition costs, grants and any other funds they can nd. at’s it, isn’t it? ere isn’t one De- mie Rae Turnbull to pull o an experi- ask them to re-engage in some way: to LSome people wonder: Don’t they make enough money? troit. ere are many Detroits that ence our guests tell us is like no other. write a check to a Detroit charity, to be Oftentimes, for the really big, complex projects, they actually don't. make up what’s happening now: new And it’s all possible with the support of a mentor to an entrepreneur, to bring a As Matt Cullen, principal of , recently testi ed to a state Senate investment and new residents in a city the Downtown Detroit Partnership, a meeting or convention to the city. And committee, there is an expensive gap between the cost of development in older with a 139-square-mile footprint that handful of foundations and key corpo- they do. An expat who recently sold his cities compared with what developers can earn back in rent. ese sites are has lost well over half the population it rate sponsors like Quicken Loans and company gave $2 million to Wayne often ridden with lead, asbestos or other contaminants. at means the clean- had in 1950. And people who have Lear Corp. State last year. Another expat who had up, before construction or redevelopment even begins, is pricey. been through the city’s decline fear they We plan everything down to the a successful exit in selling his compa- Many in the real estate and construction industries believe Gov. Rick Sny- are being left behind. ere must be minute. But we can’t plan insights and ny this past year told me he has Detroit der’s tax overhaul in 2011 went too far in eliminating brown eld incentives. room for everybody in “now” Detroit. takeaways. Attendees share memora- plans, too. Expat Tony Fadell wants to New legislation would x the funding gap — at least for the biggest, most Ford Foundation CEO Darren ble moments and insights, like listen- assemble high-tech go-carts in the transformative projects. Walker put it another way when he de- ing to billionaire expat Steve Ballmer city, the president of his new company e Legislature should pass the package, which would capture a portion of cried our “binary” way of framing be- describe how he and his wife, Connie, said Friday. state sales and income taxes, and in turn, reimburse developers for a portion liefs in this country. You have to em- will contribute to projects they think Now if we could get a couple of big of their costs. brace Black Lives Matter or the police, move the needle to interrupt cycles of corporate expats to think about mov- As Lindsay VanHulle and Kirk Pinho report on Page 3, a city would be lim- you can’t possibly be in favor of both, poverty from one generation to the ing a call center here or another way to ited to one so-called “transformational brown eld project” annually. e he said. We have lost the power of next. Or Walker speculating that the create more jobs, it would be icing on Michigan Strategic Fund could not sign o on more than ve in the entire “and.” Ford Foundation’s founders probably that Homecoming cake. state in a single year. (ink the Pontiac Silverdome site or the redevelopment is is the third year that Crain’s De- never envisioned a day when a gay of the former Hudson’s store property in Detroit.) troit Business has produced Detroit black man would lead the foundation. Mary Kramer is publisher of Crain’s Few Detroit projects would reach the minimum $500 million threshold in Homecoming: booking speakers, We have learned much through this Detroit Business. Catch her take on private funding needed to qualify; smaller communities don’t often see proj- planning programming, inviting suc- Homecoming experience. One im- business news at 6:10 a.m. Mondays on ects with a price tag of $25 million or more. If this legislation is approved, and cessful expats from literally all over the portant lesson: ere is something the Paul W. Smith show on WJR AM 760 the proper checks and balances are baked in, the legislation could be a signif- world (one came from Singapore) and about this city that people carry with and in her blog at icant catalyst to more “big idea” projects. e eects on the state's budget working with talented partners like them long after they move away. A www.crainsdetroit.com. cannot be ignored — that’s how the state got in trouble a few years ago — but Colleen Robar, Display Group and Ja- sense of pride, maybe, or a badge of there should be a way to provide an important nancial incentive for a few truly transformative projects. TALK ON THE WEB Transparency needed in no-fault fund Re: Shinola, Gilbert to open tique hotel here and there. Conven- e revenue dynamics are against Shinola Hotel downtown tion planners want large blocks of ho- any full-season move by the Pistons to Step one is transparency. tels near convention centers and an arena owned and operated by It doesn’t appear likely that legislation on reforming Michigan’s auto no- If people keep opening hotels, may- similar venues. someone else. I will also add that fan fault law will pass in the nal weeks of the lame-duck legislative session. But the be in the not-too-distant future, De- Marco Ramirez experience extends much farther than barrier continues to be an old issue: Disclosure of the claims data and future troit will be able to attract some major what happens on the court. Without liability estimates of the Michigan Catastrophic Claims Association. conventions or other events. e lack control of the in-venue experience (in- Two bills that cleared the Senate last year would have set up a new fund to of rooms has kept us from being a ma- ‘Talks to begin talks’ underway cluding guest services, suite/conces- pay claims above a $545,000 bene ts cap for auto insurers. We’ve editorial- jor host for way too long. on idea of Pistons downtown sion services, etc.), the most we might ized in the past that no-fault reform could be sensible, but before that issue Choirmistress see is a couple of games. However, can be addressed, the nancials of the catastrophic fund — created by fees The keys here are concessions, Tom has built a great org team in De- paid by insured motorists — should be released. e city is three to ve years away parking and other streams of cash troit, and anything is possible. e Court of Appeals in August upheld the catastrophic fund’s exemption yet from getting the entertainment dis- ows concerning PS&E. I cannot see Michael Garrett from the state’s Freedom of Information Act laws. e public release of the trict completed. It’s a bit premature for how a Pistons move to the Illitch-oper- fund's claims data has been entangled in legal disputes for years. giant hotels. ated arena will make economic sense Reader responses to stories and blogs Bottom line: e fund is a public body funded by residents and businesses 264909 for PS&E. is new arena only makes that appeared on Crain’s website. as part of their insurance bill. People and businesses on all sides of the issue economic sense for the Illitch family. Comments may be edited for length deserve a look behind the curtain. e problem is that it’s still a bou- Carolyn Mazurkiewicz and clarity. Let there be light Last week, during the third annu- sands of streetlights all over the city. deserve to be demolished. Many of our state. It is something that their al Detroit Homecoming, we asked Now it seems like daylight on most these can be and are being saved for peers across the country should take the mayor of Detroit to give an up- streets. new owners who have bought hous- note of. It is very pleasant to a date to all the expats in our audi- It took a while, but Duggan didn't es at bargain prices and are spend- Republican and a Democrat working ence. Many of them had been away get discouraged. He just kept his ing some money to x them up. together for the common good. from Detroit for a decade or more. head down and got the job done for Neighborhoods are being reborn. Not only can it happen, but it is Although the mayor had a long list the entire city. Lighting helps reduce Some folks who couldn't aord happening, and Detroit is proof pos- of worthwhile accomplishments, crime as well as simply enhancing houses are now in their own homes itive. Mike Duggan has done great two stood out. What had to be a tre- the environment. KEITH CRAIN in a new neighborhood. things for the city, and Gov. Snyder is mendous task was relighting the en- Duggan and his team then took Editor-in-chief e revitalization of our city un- also doing great things for the state. tire city of Detroit. With lots of new on the blight, tens of thousands of der Mayor Duggan is simply remark- ere is still plenty to do, but they technology available and far too houses that needed to be dealt with. It’s making a dierence in many able. And he's working hand in hand both have an agenda and are work- many streetlights that simply didn't His goal was to demolish something parts of our city. with our governor, who may be of a ing away at their own lists. work, the mayor took on the daunt- like 50,000 houses. A job that would But the surprise is that there are dierent party, but they get along It's nice to see government work ing task of replacing tens of thou- take a normal man 25 years or more. thousands more houses that don't and get things done for our city and correctly. CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 7 Detroit Central City changes name, announces plan for a ordable housing

By Jay Greene ture up to 277 “tiny houses” of 400 to Avenue o Charlotte Street, blocks people with disabilities, and others. “When we take a look at the envi- [email protected] 500 square feet for clients. away from a wave of redevelopment Charlotte o ers low-income rent for ronment we were able to create with Detroit Central City Mental Health “e a ordable housing would in Midtown. tenants and support services from the Charlotte Apartments and all the has been reborn with a new name be anchored by a health center,” he It is also just south of Central Central City. fantastic amenities that are part of — Central City Integrated Health Inc. said. “We want to get it right here City’s Midtown health center at 10 e project was funded by City that, we feel we can push that clinic — and a new growth plan centered rst in Detroit. We have the health Peterboro St. to a ord easy access of Detroit Home Investment Part- model and a ordable housing to oth- on creation of new health centers care; we just need to get the devel- for residents. Central City also of- nership Program funds, Michigan er properties down the road,” Op- surrounded by a ordable housing opment down. I expect two projects fers an array of social services to the State Housing Development Authori- perman said. projects under new CEO Ryan Lep- this year and next year to do three homeless by o ering temporary ty low-income housing tax credits, Opperman said all of Charlotte’s per. more large projects, then go from housing for veterans and disabled browneld tax credits and $300,000 apartments are occupied, and about Lepper, a native who there.” people, literacy training, employ- from the Home Depot Foundation. 400 people are on the waiting list. came from the institutional invest- Lepper cited the model Central ment support and transportation Kiel Opperman, co-chairman of “ese are previously homeless ment community, took over Jan. 1 as City has already established with services. Central City’s development commit- people,” he said. “ere is great de- CEO after longtime CEO Irva developer Joseph Early in down- e $6.1-million Charlotte project tee, said Lepper’s vision of growth was mand in the Midtown area.” Faber-Bermudez retired. Lepper had town Detroit at the historic Char- created 27 750-square-foot, one-bed- met with intense excitement by board Jay Greene: (313) 446-0325 been CFO of Detroit’s sixth federally lotte Apartments, west of Second room units for homeless veterans, members. Twitter: @jaybgreene qualied health center. Central City’s innovative growth plan calls for it to build more than a dozen new health clinics — provid- ing medical, dental and mental health care — to be surrounded by a ordable housing for its clients in Detroit, the rest of Southeast Michi- gan and eventu- ally greater Michigan and other states. “Our name change reects our plans to take this model, ex- pand in Detroit and other cities Ryan Lepper: like Warren, “Name change Southeld and reects our plans.” Grand Rapids, and eventually take it into other states,” Lepper said. “No other organization in De- troit is doing what we are doing. We have literally everything — housing, medical, dental and behavioral health.” Central City takes care of about 4,500 people per year. Over the next ve years, Lepper said, he hopes to double clients served and expand the organization to a more than $20 mil- lion annual revenue business from $13 million this year. Lepper said the a ordable housing model generates developer fees for Central City at about $500,000 per project. “We would like to do two proper- ties each year and generate $1 million in development fees,” he said. As a federally qualied health cen- ter, Central City has integrated prima- ry medical, dental and mental health services along with housing and sup- port services to clients. “We want to rst acquire the af- fordable housing, populate it with cli- ents, then build health centers and create villages,” Lepper said. One project he expects to an- nounce this year in Detroit will fea- Huntington is proud to have recently been recognized as a Regional and National 2014 Greenwich Excellence Award in Middle Market Banking for Cash Management MAKE THE Overall Satisfaction. We’re even more proud of our MOST treasury management team, who earned this award OF YOUR EDITORIAL through their hard work and dedication to our customers. COVERAGE IN CRAIN’S tom with cus Member FDIC. ¥® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® Reprints,E-prints Welcome.TM is a service mark of Huntington Bancshares Incorporated. © 2016 Huntington Bancshares Incorporated. and more! [email protected] 8 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 M-1 Rail track construction signals expansion on Woodward unlikely By Bill Shea was designed to provide access. It can be to the city limit at Eight Mile, had been [email protected] extended in the future if funding can be estimated in 2011 to cost $528 million. e notion of the M-1 Rail streetcar found.” Some transit insiders have estimated it chugging north to the suburbs on Higher-speed light rail, in theory, would cost even more than that to reach Woodward Avenue has come to a literal could be built north of M-1’s tracks as Eight Mile, and to link the entire 27 miles dead end, at least for the near term. commuter rail, and passengers could of Woodward from downtown to Ponti- Track construction in Detroit is switch lines at the New Center station. ac would reach into the billions of dol- scheduled to end before anksgiving, Any eort to extend rail, either high- lars — money that largely would have to and one of the nal portions of work re- er-speed or similar to M-1’s speed-of- come from the federal government and veals that long-term transit thinking no trac service, north along Woodward could take decades to secure. longer includes more rail service on would have to be led by government, No one currently is advocating more Woodward Avenue. M-1 organizers have said for years. Any rail service on Woodward beyond the e northern terminus of the line just expansion of the streetcar to the obvious QLine, Palombo said. north of East Grand Boulevard in De- BILL SHEA/CRAIN’S DETROIT BUSINESS routes of Michigan and Gratiot avenues “Many people have asked me about troit’s New Center Area is among the last The end of the M-1 Rail on the north end of Woodward, looking south, shows no spur also would happen under public control the situation. ey have asked if (the construction zones, and the track hasn’t for further construction north. of the system. QLine on Woodward) is just phase one. been laid to allow for an immediate Detroit streetcar service began under e answer is ‘no,’ this is all that has been northern extension of the line. It ends at tems that traverse the route. died in 2011 amid Detroit’s nancial col- a city charter in 1863 with privately discussed. ere is no phase two, at least M-1’s maintenance garage and doesn’t M-1 issued a statement on ursday lapse — M-1 organizers have said the owned horse-drawn cars on tracks. not yet and not by the private sector,” he have a spur line in the street to allow easy that downplays the diculty of any fu- streetcar line is a “circulator” system that Streetcar operations, long-since turned said. “Could it go further north in the fu- future track extension northward with- ture rail expansion on Woodward: would plug into other forms of commut- into a city department, ended in favor of ture, or south and east down Jeerson out rail realignment and Woodward re- “From the inception of the project, M-1 er mass transit, such as the legacy bus buses in 1956. for that matter? e answer is ‘yes.’ I have construction in front of M-1’s Penske Rail made sure that the design did not services, Amtrak, and the Detroit Peo- M-1 is a nonprot whose $187.3 mil- never seen a cost estimate to do either, Technical Center. prohibit future extension of the route. ple Mover. Connecting to the proposed lion budget is funded by corporations, but it is possible. To go to Eight Mile or Instead, project organizers say the Our infrastructure, track and stations BRT line, and traveling alongside it on foundations, hospitals, but also federal, beyond will be expensive.” 3.3-mile streetcar system, which will run can support additional streetcar or light Woodward, also is part of M-1’s plan. state and local tax dollars, making it a hy- e bus rapid transit service has been between E. Grand and Larned Street rail connectivity, whether connected “ e RTA plan is to have bus rapid brid private-public eort. Its original in- pushed since 2011 by the city, regional when passenger service begins next from the north, south, east or west. e transit on Woodward to provide for the tent was to avoid government red tape to and state leaders, and now is the focus of spring, will feed into a train-like bus rap- (Regional Transit Authority of South- long distance travel from Oakland quickly build a streetcar that would a $3 billion, 20-year property tax issue id transit (BRT) commuter system that east Michigan) plan connects the County into Detroit and vice versa,” said boost economic development by mov- put on the Nov. 8 ballot by the Regional has been proposed for the entire length QLine to the north specically by bus Carmine Palombo, deputy executive di- ing residents, workers and visitors along Transit Authority of Southeast Michigan of Woodward (and for Detroit’s other rapid transit, and that is a plan we sup- rector of the Southeast Michigan Coun- the city’s chief business and entertain- in Wayne, Oakland, Macomb, and major arteries, Gratiot and Michigan av- p o r t .” cil of Governments regional planning ment district. Eventually, it fell under Washtenaw counties. at same tax also enues). Passengers would transfer from Since the idea was hatched in 2007 to agency that is the clearinghouse for tran- government regulation. is intended to fuel M-1 Rail operations the QLine, as M-1’s Woodward streetcar create a privately funded rail line on sit eorts locally. “ e QLine was never e city’s since-scrapped plan to con- beginning in 2027. line is called, to the BRT service, or to the Woodward — there also was a city-led envisioned by the developers as the struct a more traditional commuter light Bill Shea: (313) 446-1626 traditional city and suburban bus sys- public rail project for Woodward that long-distance solution in the corridor. It rail line on Woodward, from downtown Twitter: @Bill_Shea19

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A BLUEPRINT FOR BETTER HEALTH CARE Michigan project to map out plan for linking physicians, hospitals, social service organizations

By Jay Greene necessary use of emergency department services. tices certied as patient-centered medical homes, [email protected] In 2018, the ve participating regions will participating hospitals in accountable systems of Michigan health o cials next year will embark choose additional goals that could include reduc- care, payers and social service organizations that on an ambitious pilot project that they hope will ing obesity, depression, infant mortality, high- range from mental health providers to housing help mend ills the health care system isn’t cost health care users and individuals with multi- agencies. equipped to x alone. ple chronic diseases. HHS is in the nal stages of signing contracts e goal is to remake the state’s health care sys- Paul Valenstein, M.D., co-chairman of the with regional managing organizations and select- tem by linking it to social service organizations to State Innovation Model working group for Washt- ing an information services company to be the more comprehensively coordinate care for pa- enaw and Livingston counties, said frequent ER central repository of clinical and patient use data tients. users often have untreated conditions, don’t have that will be used to manage costs and monitor Funded by the Aordable Care Act and a a regular primary care provider and generate high quality, said Elizabeth Hertel, HHS director of $70 million state innovation model grant to Mich- costs to the health care system. policy and legislative. igan’s Department of Health and Human Services, “is is a test to evaluate what we do and, if “We are hoping to achieve improved quality the three-year experiment will start this January successful, will be replicated across Michigan,” and measures that cause negative health out- in ve Michigan “community innovation” re- said Valenstein, director of clinical microbiology comes in the ER as well as behavioral health, gions: Washtenaw and Livingston counties, Gen- at St. Joseph Mercy Health System and head of housing services and medical services,” Hertel esee County, Jackson County, Muskegon County pathology with IHA Inc., an Ann Arbor-based said. and 20 counties in northern lower Michigan. multispecialty medical group. Besides ensuring that medical and social ser- While providers will eventually use the pro- Under what is being called Michigan’s Blue- vice providers communicate, Hertel said, the key gram to help coordinate care for all patients with print for Health Innovation, each region will have will be developing payment incentives and col- acute care needs and chronic diseases, the pro- a coordinating agency that will be responsible for lecting and sharing data. gram next year will start by targeting high and un- managing the project that will link medical prac- SEE BLUEPRINT, PAGE 10

CRAIN’S ILLUSTRATION/ISTOCKPHOTOS 10 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016

SPECIAL REPORT: HEALTH CARE EXTRA SPECIAL REPORT: HEALTH CARE EXTRA

BLUEPRINT FROM PREVIOUS PAGE FROM PAGE 9 what’s next. e key is making sure “All have to be involved,” she said. they get enough rest, take their medi- “ e devil is in the details. We are cations and make their follow-up ap-

. working with them to make sure we pointments, Malouin said. are addressing their concerns and “I am a practicing physician myself, needs.” and these transitions-of-care calls really Managing the regions will be the help quite a bit,” she said. Ann Arbor-based Paul Valenstein: Marti Walsh: Center for Health- Coordinating care care Research and Transformation in Connections are Working closely Washtenaw and Livingston counties, important. with patients, At CHRT, Udow-Phillips said the THING Jackson Health Network in Jackson SIM workgroup’s 30 members are de-

Y County, Muskegon Health System in the $70 million SIM grant. veloping a single plan for Washtenaw Muskegon County, the Flint Health Over the past ve years, MiPCT’s and Livingston counties to coordinate Coalition in Genesee County and a co- 1,953 providers, including nurse prac- care among the free clinics, homeless alition of health departments in the titioners and physician assistants, shelters, health departments, medical VER northern region. have cared for 1.2 million patients, care and mental health providers. Each region is furiously creating the Malouin said. At least 15 other payers “We will hire a data aggregator to E infrastructure and necessary commu- such as Blue Cross Blue Shield of Mich- show the impact,” she said. “We have

IS nity connections to prepare for the igan, Blue Care Network, Priority reasonably good data in the medical rollout early next year. Health, and the Medicare and Medic- care system, but we have very poor and “We need to identify who is a fre- aid programs have their own incentive not coordinated data on what happens Advanced technologies and global competition require new skills. Lawrence quent user of ERs, using existing data programs to reward practices. For ex- in human services. ... We want to add Technological University's innovative certificate programs, bachelor's and graduate networks like (the Michigan Health In- ample, Medicare pays practices an ad- information about who gets referred to ) but also a central ditional $9.50 per member per month, mental health and homeless shelters degrees in Colleges of Architecture and Design, formation Exchange LTU ranks fifth among U.S. colleges and data aggregator” to collect and share which includes $4.50 for care manage- and do those interventions.” Arts and Sciences, Engineering, and Management universities for boosting graduates’ clinical and utilization information ment stang. Marti Walsh, M.D., IHA’s chief can help you succeed. earning power. – Brookings Institution among participants, Valenstein said. “Net savings for the rst two years of quality and population health ocer, “We also need humans (at medical the program was $336 million with a said IHA, St. Joseph Mercy and the

2016 2016 2016 practices and ERs) to exercise judg- return on investment of $8.56 (for ev- University of Michigan Health System TOP 10% ment and refer patients to appropriate ery $1 spent). We are really thrilled will be working closely to ensure that BEST COLLEGES AMERICA’SBEST NATIONALLY in the Midwest UNIVERSITIES Highest Alumni Princeton U.S. News & Salaries agencies to address particular prob- about that,” said Malouin, adding: patients are medically stabilized in the Review® World Report® PayScale lems they have,” he said. “Preliminary reports show sustained ERs and given alternatives for fol- Lawrence Technological University Valenstein said connections with savings over the next three years.” low-up care. 21000 West Ten Mile Road, Southfield, MI 48075-1058 | 800.225.5588 | [email protected] | www.ltu.edu social service agencies are important “My personal obsession is to sus- “One thing will be getting them because frequent ER users and other tain the (600) care managers and turn hooked up with a primary care provid- high-cost patients have problems that this into an ongoing program,” said er and coordinate that for the patient,” could range from mental health, sub- Malouin. Care managers are hired by said Walsh, who is co-chairman of the stance abuse, poor housing, lack of the medical practices to help coordi- accountable systems of care and med- nutrition and inability to pay for med- nate care for the patients seen in the ical home subcommittee for IHA, St. ications. medical homes. Joe and UMHS. “We need to know why they are us- State ocials will also rely on an- “We already do a lot of that,” coordi- ing the ER. Do they have an end-of-life other new federal Obamacare grant nating with social services, Walsh said. issue? ey may need palliative care. to continue the medical home pro- “( e blueprint) is proposing greater Do they have an opioid issue? ey gram under the ve-year Compre- capabilities for the patient (and) more may need substance abuse counsel- hensive Primary Care Plus project. care transformation” to reduce inap- ing. e ER is not the best setting. We Participating in the program, besides propriate ER use and connect patients want to ag people and get them re- Medicare and Medicaid payers, are to social services. ferred,” Valenstein said. such commercial payers as Blue Amy Schultz, M.D., executive direc- Marianne Udow-Phillips, director Cross and Priority Health. Medicare tor for population health with the Jack- of the Center for Healthcare Research will oer $2.50 to $4 per member per son Health Network, said coordinat- and Transformation, said lessons month bonus payments for hitting ing medical care with social services learned from the blueprint are expect- quality and usage targets. has been a goal the network has been ed to lead to quality improvements One of the goals of the blueprint is to working toward the past several years. and cost reductions in the larger more than double the number of med- e network is a partnership between health care delivery system. ical homes in Michigan to 1,000 by physicians, community leaders and “If we can reduce ER use, we can 2020 and patients served to more than Henry Ford Allegiance Health. lower costs for Healthy Michigan 2.5 million. Along the way, HHS wants “We have been working for the past (Medicaid) and for the traditional to cut from 16 percent to zero the num- ve years to align providers around Medicaid program,” Udow-Phillips ber of patients with no primary care cost and quality,” said Schultz, who is said. provider, said an HHS state report. a preventive medicine specialist. By increasing access to primary “Now we have an opportunity to cre- Keys to success care and other health system improve- ate a network with social services. e Among the important keys to the ments, HHS also hopes to reduce un- state will help accelerate that and get blueprint program are the state’s 400 necessary hospital admissions, read- everybody to work together on the certied patient-centered medical missions that occur within 30 days, ER same page.” homes, said Jean Malouin, M.D., med- visits and admissions to neonatal in- Schultz has seen the benets of ical director of the Michigan Primary tensive care units and those inpatient hospitals working closely with social Care Transformation Project, which is admissions that could be prevented by services. For example, Henry Ford Al- overseeing the program. having access to a provider, the HHS legiance sta noticed a pregnant A medical home is a physician report said. woman with diabetes kept showing up practice that has agreed to follow Malouin said the most eective way at the emergency department. e guidelines that include expanded of- to reduce overall health care costs is to hospital treated her each visit, but she ce hours for patients, a registry for avoid unnecessary hospital admis- kept on returning. tracking chronic diseases and ongo- sions and readmissions. “It wasn’t until a community health ing care coordination with laborato- “We decrease admissions and hos- worker visited her and found she was ries, pharmacies, imaging centers pital days by doing interventions,” she living in a tent that it became clear the and specialty physicians. Practices said. “ e best way to do this is with real issue was lack of stable housing receive bonus payments for hitting transition calls.” (and access to refrigeration for food various targets. A transition call works like this: and medication),” said Schultz, who As Michigan’s federal MiPCT grant Care managers call patients within 48 also is the medical director of the Jack- expires in December, state ocials de- hours after discharge to make sure son County Health Department. “ e cided to continue the program they are doing well and understand medical system alone couldn’t ad- through at least 2019 by folding it into SEE NEXT PAGE dress the problem. is model focuses CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 11 A SPECIAL REPORT: HEALTH CARE EXTRA

FROM PREVIOUS PAGE on how integrating with community services can have a much greater im- what’s next. The key is making sure pact on health.” they get enough rest, take their medi- Incentive plans cations and make their follow-up ap- pointments, Malouin said. While funding for administration “I am a practicing physician myself, of the blueprint and to pay the data and these transitions-of-care calls really aggregator will come from the $70 help quite a bit,” she said. million federal grant, reimbursement Coordinating care to the physician practices, and, in y turn, the social service and communi- At CHRT, Udow-Phillips said the ty innovation system, will come SIM workgroup’s 30 members are de- through Medicare, Medicaid health veloping a single plan for Washtenaw plans and other insurance compa- CT’s and Livingston counties to coordinate nies, Hertel said. rac- care among the free clinics, homeless “We are relying on payer partners to      ants, shelters, health departments, medical come up with alternate payment ents, care and mental health providers. models,” she said. yers “We will hire a data aggregator to Total payments to providers for the    ich- show the impact,” she said. “We have program is unknown at this time. “It ority reasonably good data in the medical depends on volume. There is a budget dic- care system, but we have very poor and for the provider reimbursement, but ntive not coordinated data on what happens there isn’t a cap,” Udow-Phillips said. rex- in human services. ... We want to add Mike Koziara, Priority Health’s ad- information about who gets referred to COO, said the Grand Rapids-based nth, mental health and homeless shelters health plan will continue to fund the age- and do those interventions.” medical homes in its network, as will Marti Walsh, M.D., IHA’s chief the other payers. Priority also will pay rs of quality and population health officer, any Medicaid provider in the Muskeg- th a said IHA, St. Joseph Mercy and the on region for like services where it is ev- University of Michigan Health System participating in the blueprint, he said. lled will be working closely to ensure that “We will repackage the payment ing: patients are medically stabilized in the methodologies, and it will flow ned ERs and given alternatives for fol- through the providers” to the social low-up care. service agencies, Koziara said. “This is sus- “One thing will be getting them something we have been advancing turn hooked up with a primary care provid- for years and hopefully can expand the said er and coordinate that for the patient,” medical home program through the d by said Walsh, who is co-chairman of the blueprint.” rdi- accountable systems of care and med- Koziara said medical homes will be the ical home subcommittee for IHA, St. paid for reduced ER use in two ways. Joe and UMHS. First, Priority will measure ER use for an- “We already do a lot of that,” coordi- all patients involved in the program rant nating with social services, Walsh said. statewide, then compare performance pro- “(The blueprint) is proposing greater of its own medical homes. pre- capabilities for the patient (and) more “We will measure and reward at the ect. care transformation” to reduce inap- macro level and practice level and cre- JUST ANNOUNCED! ides propriate ER use and connect patients ate incentives to reward primary care are to social services. physician-treatable ER visits,” he said. FREE Webinar Series Blue Amy Schultz, M.D., executive direc- “If we reduce costs in total, we will care tor for population health with the Jack- share those cost savings.” per son Health Network, said coordinat- Besides the medical home provid- ting ing medical care with social services ers in Muskegon, Priority will expand How Health Care Benefi ts Can has been a goal the network has been the program by adding other physi- is to working toward the past several years. cians who participate in the Medicaid med- The network is a partnership between program, Koziara said. Strengthen 0 by physicians, community leaders and “We haven’t had any huge success han Henry Ford Allegiance Health. in reducing ER use. You need to have a Your Business ants “We have been working for the past multifaceted strategy to have a sus- um- five years to align providers around tainable impact,” he said. care cost and quality,” said Schultz, who is In northern Michigan, however, OCTOBER Private Exchanges a preventive medicine specialist. Priority quickly identified why pa- 19 mary “Now we have an opportunity to cre- tients were using hospital ERs more 12 – 1 p.m. ove- ate a network with social services. The than other regions, Koziara said. un- state will help accelerate that and get “We had high ER use rates in ead- everybody to work together on the Northern Michigan and looked Changes in Health Care , ER same page.” closely at it,” he said. “We found there NOVEMBER l in- Schultz has seen the benefits of are no urgent care centers and no af- 9 Delivery ient hospitals working closely with social ter-hour care (at physician offices). 12 – 1 p.m. d by services. For example, Henry Ford Al- They would go to the ER and do what HHS legiance staff noticed a pregnant you expect.” woman with diabetes kept showing up Koziara said the good thing about NOVEMBER Digital Health Care Tools way at the emergency department. The the blueprint is that it embraces the 30 is to hospital treated her each visit, but she entire community. 12 – 1 p.m. mis- kept on returning. “This is more than just the payer “It wasn’t until a community health and provider,” he said. “As hard as Pri- hos- worker visited her and found she was ority works to change care with incen- Register today at crainsdetroit.com/webinars she living in a tent that it became clear the tives and programs, you have fee for with real issue was lack of stable housing service that dominates providers and Presented by: (and access to refrigeration for food hospitals, and you don’t get the prog- this: and medication),” said Schultz, who ress you need. You get a few more peo- n 48 also is the medical director of the Jack- ple to the party, and you can bend the sure son County Health Department. “The cost curve.” Powered by: and medical system alone couldn’t ad- Jay Greene: (313) 446-0325 Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofi t corporations and AGE dress the problem. This model focuses Twitter: @jaybgreene independent licensees of the Blue Cross and Blue Shield Association 12 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 SPECIAL REPORT: HEALTH CARE Michigan received $709 million from Obamacare to improve health system By Jay Greene health information aggregators. [email protected] MICHIGAN GRANT FUNDING While providers will use the pro- Michigan has been one of the na- FROM THE ACA gram to help coordinate care for all tion’s more aggressive states in seek- 56.1% Health and community-based organizations acute and chronic diseases, the SIM ing funds from the A ordable Care Act grant will target high and unnecessary in the six years since the controversial use of emergency department services bill was narrowly approved by Con- next year. In 2018, the ve participat- gress in 2010 and signed into law by ing regions will choose among goals to President . By recipient for reduce obesity, depression, infant Some $709 million, or 2.5 percent, scal year 2015 mortality or high cost patients. of $28.5 billion allocated to states in 94 Gov. Rick Snyder and the HHS grant programs through 2015 under have “been pretty aggressive in apply- Obamacare, as it is often called, has ing for grants and drawing down dol- reached Michigan, which ranks 11th 28.8% 0.4% Private lars that are available,” said Marianne overall in funding. at’s $72 per per- State agencies colleges and Udow-Phillips, CHRT director. “Com- universities son. 8.0% munity organizations like ours are all e bulk of those funds have gone Local agencies 1.1% Other for it. e ACA is a lot more than policy to state government ($240 million), issues and insurance coverage. I’d like community health centers ($329 mil- 3.9% State colleges 1.7% Tribal people to understand there are a lot of lion) and prevention e orts ($81 mil- and universities organizations nancial benets that go beyond in-

lion), according to a report by the Cen- Source: Center for Healthcare Research and Transformation surance.” ter for Healthcare Research and While Obamacare’s 2,000-plus pag- Transformation in Ann Arbor. es primarily expanded private insur- In 2015 alone, Michigan received Obamacare’s $100 billion in mandato- ance access and o ered states the abil- $219.6 million, including $118 million ry spending on programs through ity to expand Medicaid coverage, the to health centers, $61 million to state 2019, will help administer the Blue- legislation also contained many pilot agencies and $22 million to support print for Health Innovation under the projects intended to address the cost the health workforce. state Department of Health and Hu- and quality conundrum. Michigan’s latest ACA grant is for a man Services. It is designed to help “is is one of the more innovative $70 million state innovation model reduce wasteful spending, experiment things in the ACA,” said Udow-Phil- (SIM) program that is designed to al- with innovative payment models and lips. “People often talk about ACA as low the state to improve its health care integrate care coordination of physi- not having a focus on the cost of health delivery system. cians, hospitals, behavioral health, so- care, just insurance. ere are great in- e grant, which is part of cial service agencies, payers and novative projects addressing costs be- yond the medical care walls.” In early 2013, Snyder, who was one of a handful of Republicans in Michi- gan to support Medicaid expansion, ordered HHS to apply for the SIM grant through Obamacare. Michigan then became one of 11 states to re- ceive approval from the Centers for Medicare and Medicaid Services Inno- vation Center. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

Top 10 direct recipients of Aordable Care Act grant funding in Michigan

State of Michigan $240,471,468 Cherry Health $29,547,838 University of Michigan $20,355,807 InterCare Community Health Network $18,886,089 Detroit Wayne County Health Authority $17,758,768 COME BACK HOME. Health Delivery Inc. $16,365,029 Wayne State University $15,625,107 YOU DON’T HAVE TO IMPORT YOUR PRIVATE PLANE AND Family Health Center Inc. FLIGHT CREW FROM KENTUCKY, OHIO OR NEW JERSEY. $14,903,876 Locally based facilities, fleet and full-time professional team allow us to provide our Detroit Community Health Southeast Michigan members best-in-class personalized services, flight availability and Connection $14,726,423 cost efficiencies. Connecting Detroit to the rest of the world, one way or round trip. Altarum Institute $14,709,822 CORPORATEEAGLE.COM | 248.461.9001 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 13 Crain’s summit NEI funders commit to $28.5 million goal to focus on Wilson Foundation joins data pointing to the $2.9 billion im- jobs in Southeast fewer than 10 to more than 50 since pact the initiative has had in South- Michigan. 2007. ‘consumerism’ groups in third round of east Michigan. e analysis of And almost two-thirds of local en- e latest round of funding fol- the New Econo- trepreneurs surveyed for the analysis of health care initiative’s funding lows collective commitments of $100 my Initiative's said the level of support for starting million to launch the e ort in 2007 impact also and growing a business has increased e Nov. 17 Crain’s Health Care By Sherri Welch and a second $35 million round in showed: in the past ve years, NEI said. Summit will focus on how the sector is [email protected] 2014. „ 4,400 “NEI has become ‘a critical catalyst’ changing as the industry focuses more A quarter of the New Economy Ini- Twelve national and local founda- companies were in Detroit’s revival and a model for on consumers. e “consumerism” of tiative’s funders have committed to a tions have provided funding for NEI. provided with other U.S. cities,” Bruce Katz, centen- health care will be discussed in three Pamela Lewis: third round of funding for the 9-year- Aside from the three that have recom- service by NEI nial scholar at the Brookings Institu- parts: for employers, doctors and “Now is time to old economic development e ort, in- mitted to the initiative, the others are grantees through tion and founding director of the Met- health systems. Keynote speaker Ben maximize impact.” cluding a newcomer, the Ralph C. Wil- C.S. Mott Foundation, Community 2015. ropolitan Policy Program, said in the Umansky, a managing director with son Jr. Foundation. Foundation for Southeast Michigan, „ 179,571 news release. the Washington, D.C.-based Health e latter is led by David Egner, for- Hudson-Webber Foundation, Kresge people attended events in metro De- “e creation of a consortium of Care Advisory Board, will discuss the mer executive director of NEI and for- Foundation, Max M. and Marjorie S. troit’s entrepreneurial network. foundations has not only helped pool industry’s big-picture changes. mer president of the Hudson-Webber Fisher Foundation, Skillman Founda- „ More than 1 million square feet large amounts of philanthropic capi- New to the summit will be the Foundation, one of the original tion, W.K. Kellogg Foundation, William of entrepreneurial space has been ac- tal, but has also provided a vehicle for Healthy@Work innovation challenge. funders of the initiative. Egner took Davidson Foundation and the New tivated. collective impact. NEI is a case of the Entrepreneurs will pitch ideas on how the helm of the Farms- York-based Surdna Foundation. „ NEI’s grants leveraged whole being greater than the sum of employers can engage millennials in based Wilson Jr. Foundation last No- “We’re in discussion with all of our $232 million in additional program its parts.” the health care discussion. e audi- vember. (funders) ... about continuing our dollars through matches from NEI But there’s still work to be done, ence will vote on a winner. Companies ree of the original funders of NEI work,” said Matthew Lewis, commu- grantees. NEI Director Pamela Lewis said in the interested in taking part can apply at have joined Wilson in making com- nications ocer for the NEI. „ Companies supported by NEI news release. www.crainsdetroit.com/healthy. mitments totaling $13.5 million to- To date, NEI said, it has granted generated $1.9 billion in real gross do- “Now is the time to maximize the With a new president chosen by the ward a goal of $28.5 million to contin- $96.2 million to organizations and mestic product. impact of this initiative and ensure time of the event, a panel will talk ue the foundation-led economic programs supporting entrepre- Nearly 40 percent of the companies that the foundation of support for en- about the changes in store for De- development e orts through 2020. neurs. supported by the New Economy Ini- trepreneurs that has been built is sus- troit-area health care companies. ey are the -based According to an analysis conduct- tiative since 2009 are minority-owned, tained and strengthened,” she said. Among the speakers will be Jared Ber- Ford Foundation, Miami-based John ed by PricewaterhouseCoopers LLP double the national average, NEI said Just as Detroit helped to create Ameri- nstein, a national health care econo- S. and James L. Knight Foundation and the W.E. Upjohn Institute for Em- in a news release. ca’s middle class, it’s “showing once mist who has been an economic ad- and Detroit-based McGregor Fund. ployment Research, NEI’s support has As a result of its grants, NEI said, it again that it can be a model for the na- viser to President Barack Obama. Announcement of a third round of helped entrepreneurs and small busi- has helped to increase the number tion and for philanthropy.” e event runs from 7:30 a.m. to funding comes in tandem with the nesses generate $2.9 billion in real of business support organizations Sherri Welch: (313) 446-1694 1 p.m. at the Troy Marriott. To register, New Economy Initiative’s release of economic output and create 17,490 and programs in the region from Twitter: @sherriwelch go to www.crainsdetroit.com/events.

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COSTAR GROUP INC. The 53-unit Marwood Apartments building is the rst acquisition of the new nonprot Develop Detroit LLC. Develop Detroit buys apartment building near QLine’s north terminus By Kirk Pinho three-bedroom units renting for $649 [email protected] per unit. Sonya Mays has closed on the rst e average asking rent amounts to deal for her Develop Detroit LLC with 59 cents per square foot, according to the $2.05 million purchase of the Mar- CoStar. wood Apartments four blocks north of e deal is just one brokered re- the under-construction QLine street- cently by Bloom eld Hills-based In- car line’s northern terminus. come Property Organization, which Mays, a senior adviser to former represented Weinberg and Develop Detroit Emergency Manager Kevyn Detroit. Orr from 2013-15, announced the Two months ago, a $17 million deal nonpro t Develop Detroit’s formation for the 259-unit Bloomeld Square this summer with the goal of working Apartments at South Boulevard and on multifamily development and ac- Squirrel Road in Auburn Hills closed quisition in the city’s neighborhoods. between seller Robert Levin and pur- e 53-unit Marwood Apartments chaser Loop Investments, described had been owned by Joshua Weinberg. as an Israeli investor. REGISTER TODAY e $2.05 million sale price for the e ownership entity, Bloomeld 1924 building amounts to $38,679 per Loops Square LLC, is registered to unit. Elliot Indig, an attorney with West According to CoStar Group Inc., a Bloom eld Township-based law rm Washington, D.C.-based real estate Aidenbaum Schlo­ and Bloom PLLC. THURSDAY information service, the building at CoStar lists the owner of Bloom eld 53 Marston St., just east of Woodward Square as Yechiel Lopiansky. Avenue, has 20 one-bedroom units e sale price amounts to $65,637 NOV. 17 with an average asking rent of $442 per unit. per unit; 30 two-bedroom units ask- Kirk Pinho: (313) 446-0412 TROY MARRIOTT ing $590 per unit; and three Twitter: @kpinhoCDB 7:30 A.M.- 1 P.M.

TITLETITLESE SPSPONSORPONSOR Michigan banks show improved health Michigan banks continued to re- assets, community reinvestment ratings ect their return to health following and market versus book value. the Great Recession, according to the ese are the ve-star banks with a quarterly report issued by Fort Lau- presence in Southeast Michigan: Ann The Consumerism of Health Care derdale, Fla.-based BauerFinancial Arbor State Bank; Chelsea State Bank; Inc., a ratings agency that evaluates Bank, Dallas; Crescent Bank The annual Crain’s Health Care Leadership Summit the health of banks and credit unions. & Trust, New Orleans; Crestmark At the bottom of the recession, in Bank, Troy; Dearborn Federal Savings provides opportunities to learn about the ever- March 2010, BauerFinancial gave 15 Bank; Fi†h Third Bank, Cincinnati; changing landscape of the health care industry banks in Michigan, including eight in First Independence Bank, Detroit; Southeast Michigan, its lowest rating First State Bank, St. Clair Shores; as well as fortify professional connections to of zero stars. But in its newest ratings of Hantz Bank, South eld; Huron Valley help navigate these changes. Join local business the 131 banks with operations in State Bank, Milford; Independent leaders and health care providers to discuss the Michigan, only two got zero stars. Bank, Grand Rapids; KeyBank, Cleve- Of the 38 in Southeast Michigan, land; Level One Bank, Farmington latest in innovative health care strategies and best just one, Urban Partnership Bank of Hills; Monroe Bank and Trust; Private- practices for 2016 and beyond. , got zero stars. Twenty got the Bank and Trust, Chicago; Sterling top rating of ve stars; 15 got four stars. Bank and Trust, South eld; Talmer BauerFinancial evaluates capi- Bank and Trust, Troy; TCF National tal-to-debt ratios, pro t and loss trends, Bank, Wayzata, Minn.; and University Register at crainsdetroit.com/events, or call (313) 446-0300 delinquent loans and write-os, histori- Bank, Ann Arbor. cal data, liquidity, reserves, repossessed Tom Henderson CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 15 WEDNESDAY SEPT. 21 New Roles for Philanthropy in Metro Detroit: A Perspective From the Kresge Foundation. 8-9:30 a.m. Troy CALENDAR DEALS & Chamber of Commerce. Speaker: Kress, phone: (240) 204-3054; email: $30 members; $55 nonmembers. George Jacobsen, program ocer, [email protected]. Contact: Marianne Alabastro, Kresge Foundation. Rehmann, Troy. phone: (313) 596-0479; email: Free for Troy Chamber members; $10 THURSDAY [email protected]. for nonmembers. An additional $5 SEPT. 22 DETAILSCONTRACTS released its remote assisted will be charged to those registering Detroit Riverside Chat. 5-8 p.m. FRIDAY Your People LLC, Huntington programming service, which allows the day of the event. Contact: Jaimi Marketing and Sales Executives of SEPT. 23 Woods, was named the agency of any repair shop to update software in Brook, phone: (248) 641-8151; email: Detroit. Jay Farner, president and Building a Winning Culture record for the Coalition on Temporary a vehicle’s computer system during [email protected]. chief marketing ocer, and John Leadership Breakfast. 7:30-9 a.m. e Shelter, Detroit, a nonpro t that service or reprogram when replacing Fikany, vice president of strategy, both Business Round Table. e speaker is provides emergency shelter, parts. Website: drewtech.com. Lawrence Technological University of Quicken Loans, talk about their Tom Burt, executive vice president transitional and permanent housing President’s Symposium. 7-9 p.m. company’s innovation and and COO of Duncan Aviation. and support services for homeless Altair Engineering Inc., Troy, Lawrence Technological University. technology-driven culture. e Birmingham Country Club, families. Website: yourppl.com. released new features to its HyperWorks “NAFTA Revisited: e Way Forward moderator will be Dave Zilko, CEO of Birmingham. $35. Contact: Christa software suite. HyperMesh 14.0 in the 21st Century Global Economy” Fuel Leadership. International Moxon, phone: (269) 685-7829; Yottabyte LLC, Bloom eld improves workows and provides a will review dramatic changes in the Institute of Metropolitan Detroit, email: christa.moxon@ Township, a provider of software- complete framework of model global economy since NAFTA took Detroit. $45 members; $60 thebusinessrt.org. de ned data storage and data centers, building and stress analysis features eect in 1994. e moderator is nonmembers. Website: www. has contracted with the University of for aerospace. Website: altair.com. Thomas Marx, professor and director msedetroit.org/events. Calendar guidelines. Visit Michigan, Ann Arbor, for Yottabyte’s of the Senior Service College crainsdetroit.com and click “Events” research cloud to help scientists in the Fellowship program and Center for Inside the CEO Mind. 8-10 a.m. Email near the top of the home page. Then, analysis of sensitive data sets restricted Deals & Details guidelines. Leadership at LTU. Panelists will be Detroit Regional Chamber. Patti [email protected]. Use click “Submit Your Events” from the by federal privacy laws, proprietary Douglas George, consul general of Poppe, president and CEO of CMS any Deals & Details item as a model drop-down menu that will appear. access agreements or con dentiality Canada in Detroit; Juan Manuel Energy Corp. and Consumers Energy, for your release, and look for the Fill out the submission form, then requirements. Website: yottabyte.com. Solana Morales, consul general of will talk about her ideas on appropriate category. Without click “Submit event” at the bottom Mexico in Detroit; and Paul Traub, leadership success, strategic complete information, your item will of the page. Birchtree Dental Center, Westland, senior business economist, Federal planning and commitment to not run. Photos are welcome, but we has announced an aliation with Reserve Bank of Chicago. LTU, customer- rst management. More Calendar items can be found cannot guarantee they will be used. Great Expressions Dental Centers, South eld. Free. Contact: Donna Emagine eatre, Royal Oak. at crainsdetroit.com/events. South eld, that will allow Birchtree to oer extended hours and services. Websites: birchtreedental.com, greatexpressions.com.

MOVES Foster Swi Collins & Smith PC, South eld, has moved its law oce from 32300 Northwestern Highway, Farmington Hills, to 28411 Northwestern Highway, Suite 500, South eld. Telephone: (248) 539-9900. Website: fosterswift.com.

NEW PRODUCTS Endra Life Sciences, Ann Arbor, launched the Nexus 128+, adding up to twice the photoacoustic sensitivity to its previous computed tomography imaging system. Website: endrainc.com.

NEW SERVICES ZipLogix LLC, Fraser, announced new features to its zipTMS, a real estate transaction management system. It adds collaborative functionality for brokerage accounts, increases transaction organization and enhances transaction document retention. Website: ziplogix.com.

SRG Global Inc., Troy, a subsidiary of Guardian Industries Corp., a manufacturer of coatings on plastic for the automotive, commercial truck and consumer goods industry, announced its G-Coat tint-over- chrome process that improves paint adhesion to chrome-plated plastic parts. Website: srgglobal.com.

The Shirt Box, Farmington Hills, a men’s clothing retailer, launched e Sock HookUp, a service that selects and delivers a pair of fashion-forward socks to a subscriber’s door every month. Website: sockhookup.com.

Drew Technologies Inc., Ann Arbor, a subsidiary of Opus Inspection, East Granby, Conn., a manufacturer of vehicle communication and equipment for the vehicle inspection and automotive service industry, has 16 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 ADVERTISEMENT SECTION PROFESSIONAL PEOPLE: SERVICES SPOTLIGHT PulteGroup names CEO, adds young Pulte to board PulteGroup Inc. said its president, Ryan Marshall, is taking over immediately as CEO, ending a months-long campaign by the homebuilder’s founder for a change in MANUFACTURING leadership, and Bill Pulte, Harve C. Light & Alexander A. Calderone managing Partner / Partner partner of Bloom eld Calderone & Light, LLC Hills-based Harve Light, former Senior Vice President and leader of Comerica Bank’s middle market Pulte Capital workout group, has joined the „ rm of Calderone Advisory Group in the role of Partner. In Partners LLC, connection with this move, the „ rm will be renamed to Calderone & Light, eŒ ective was named immediately. Light will assume the role of overseeing the „ rm’s turnaround and crisis Bill Pulte: Elected to the management practice, which provides advisory services to middle market businesses and to board. PulteGroup their creditor constituencies during distressed situations. board. Marshall will replace Richard Carleen Gray Alex Calderone of Calderone Advisory Group has taken on a new partner, Harve Light, and Dugas, who will remain as renamed the „ rm to Calderone & Light. He will co-lead the „ rm’s turnaround and crisis executive chairman of the board Vice President of Commercial Sales management group, while also assuming responsibility for its expanding litigation support until the Atlanta-based company’s STAHLS’ practice. Calderone recently received the Turnaround Management Association’s 2016 2017 shareholder meeting. Dugas “Top of the Class” award. This award celebrates emerging leaders who have reached STAHLS’, a global leader in the garment in April announced plans to retire signi„ cant success in the turnaround industry before age 40. decoration industry, has appointed Carleen next year, after Bill Pulte, the Gray to vice president of commercial sales. company’s founder and largest Gray will retain her current role as vice shareholder, began pressing for a president of marketing and chief marketing ACCOUNTING AUTOMOTIVE change in direction. Dugas had o• cer. Under Gray’s leadership, STAHLS’ been CEO since 2003. will continue to expand its partnerships  e founder and new board with licensed brands, major sports leagues member are grandfather and and colleges, as well as further develop its grandson and share the same apparel manufacturing division. Gray will name.  e younger Bill Pulte’s also oversee growth of STAHLS’ E-Sports company is an investment rm and E-Commerce retail sectors. unrelated to PulteGroup Inc. PulteGroup in 2014 moved its headquarters from Bloom eld Hills to Atlanta, citing the growing share of its customer base outside the Midwest. Mike Dingwall Andrew J. Hanna New communications, Assurance Partner Director of Research & Development media directors named RSM US LLP Mectron Engineering Detroit Mayor Mike Duggan Mike joins RSM, the 5th largest Mectron Engineering, a leader in has tapped two former journalists accounting „ rm in the U.S., which inspection systems technology, has to serve in communications recently opened its „ rst o• ce in promoted third generation Andrew positions in his administration. Michigan. He will lead this o• ce utilizing Hanna to Director of Research and Peter Kadushin, 32, a former Greg Peirce his 25 years’ experience as an auditor Development. The Hanna family founded New York Post and New York Daily Vice President and and advisor to domestic and Mectron in 1968. Andrew started working News reporter, is the new director international clients. Previously, he was as an engineer in 2013. He graduated of communications, and Chief Technology O† cer Joseph an audit partner at KPMG leading their with an undergraduate from the Harris, 38, is the new director of STAHLS’ Detroit middle market practice and led University of Michigan and his Masters in media services. STAHLS’, a global leader in the garment Moore Stephens Doeren Mayhew’s business from University of Notre Dame. Kadushin was deputy decoration industry, has promoted Greg International Service Group assurance Hanna’s new roles include overseeing communications director of New Peirce to vice president and chief practice. Mike focuses on the product development, researching new York City and a deputy technology o• cer. With more than 20 automotive, manufacturing, real estate inspection techniques and leading communications director for the years of IT experience, Peirce will be and technology industries. Mectron’s development team. United Federation of Teachers. He responsible for consolidating STAHLS’ replaces John Roach, who was North American IT operations, including communications director since implementing solutions that streamline all HEALTH CARE Duggan took o ce in 2014 and business operations and improve customer PEOPLE ON THE MOVE now is director of media relations. experience. Peirce leads a global team provides an opportunity In his new role, Harris, a former focused on creating technologies in a Terrisca Des Jardins WJBK-TV2 videographer and culture that values innovation and speed to Administrative Director to announce the selection, editor, will oversee the city’s two market. Physician Organization promotion, appointment, cable television channels and of Michigan ACO video production for Duggan’s leadership or role responsibility administration and the Physician Organization of Detroit .  e city’s former Michigan Accountable Care expansion of an employee, City Council Katrina Agustin media services director, Organization, LLC (POM ACO) is pleased to Aaron Vice President of colleague or team member , left the position recently. announce the appointment of Terrisca Des Alfaro Enterprise Architecture Jardins, MHSA, as Administrative Director. across industries and sectors. and Solutions Delivery With nine physician organizations and Visteon adds Bergman Carhartt, Inc. approximately 5,200 provider participants For more information Van Buren Township-based Carhartt has promoted across the State of Michigan, POM ACO or questions regarding advertising elected former Katrina Agusti to vice president of enterprise serves more than 100,000 Michigan Medicare Visteon Corp. in this section, please call architecture and solutions delivery. Agusti will bene„ ciaries and is the second largest ACO in Bright House Networks LLC President to its develop an IT application roadmap to enable the United States in the Centers for Medicare Lynn Calcaterra at (313) 446-6086 or Nomi Bergman board of directors, e ective Oct. 1. Carhartt’s corporate strategies, as well as and Medicaid Services Medicare Shared email: [email protected] de„ ne and deliver strategic IT initiatives. Savings Program. CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 17 September 19, 2016 CRAIN’S DETROIT BUSINESS Page 17

already operates in Auburn Hills. getting more lenient, so weight is a big operations of ThyssenKrupp Budd Co. ites Co. Ltd. CSP CSP supplies lightweight composite deal,” Selecman said. “It has a much and increased revenue to $300 million On the heels of its announcement FROM PAGE 3 materials and molded parts for automo- more robust opportunity than it’s been that year, from roughly $90 million in earlier this year that CSP would invest tive and other industries. As a major pro- given credit. Even parts you wouldn’t as- 1998. $33.5 million to expand its operations American sales channels for automotive ducer of carbon and heat-resistant fibers sociate with these materials are being Scott announced he would run for in Huntington, Ind., media reports in- composite products. CSP has 14 loca- as well as thermoplastics, Teijin offers investigated for the weight savings.” governor of Florida in 2010, transferring dicated Scott wanted to cash out. tions globally, 11 of them in the U.S., and complementary expertise to CSP’s oper- Composite cylinder casings and oth- his investments to a blind trust under Foley & Lardner LLP in Detroit repre- has more than 3,000 employees. ations in glass fiber- and carbon fiber-re- er engine parts are being explored for management by Scott Capital, run by sented Teijin on the deal. e company molds structural and inforced composites and thermosets, production, he said. Greg Scott, who is no relation to the gov- Mark Aiello, partner at Foley, said exterior auto parts, including body pan- CSP CEO Frank Macher said in a tele- e transaction also ends a cycle of ernor. CSP’s strong intellectual property cata- els on the 2016 Chevrolet Corvette and phone interview with Plastics News. Tei- private equity ownership for CSP since Meanwhile, CSP had survived the log drew several interested parties. hard tops for the Jeep Wrangler. jin has plans to build a carbon fiber facto- 1998 when it was acquired Westport, Great Recession and began growth on e deal with Teijin is a clear boon for Teijin is betting that more stringent ry in the United States, giving CSP a Conn.-based Max Capital LLC for an the rebound. In 2013, it generated $600 Scott Capital and its investors, indirectly pollution regulations will accelerate the North American source for that material. undisclosed price. million in revenue. including Florida’s governor. move toward lighter materials in cars Casey Selecman, advisory services In 2005, CSP management, with In 2014, CSP acquired ve North Scott’s net worth is estimated at near- and build a $2 billion business for auto- director for Southeld-based IHS Markit $14 million from investor American American plants from customer Mag- ly $147 million, according to an annual motive composites by 2030. e maker Inc., said the use of composite plastics is Capital Strategies Ltd., and the invest- na International Inc., adding 1,000 nancial disclosure with the Florida of chemicals and materials has stepped trending through the auto parts indus- ment rm controlled by Rick Scott employees and 600,000 square feet of Commission on Ethics in 2015. up acquisitions under CEO Jun Suzuki, try. Carbon-ber and other composite performed a leveraged buyout of CSP manufacturing space. It also created a Dustin Walsh: (313) 446-6042 who took the helm in January 2014. Teijin materials are valued for their strength, for an undisclosed price. joint venture with China’s Qingdao Twitter: @dustinpwalsh Advanced Composites America Inc., a durability and light weight. In 2006, CSP acquired the plastics Victall Railway Co. Ltd. called CSP Vic- Plastics News contributed research and development subsidiary, “Fuel-eciency requirements aren’t materials manufacturing and molding tall (Tangshan) Structural Compos- to this report.

MARKET PLACE JOB FRONT INDUSTRIAL SERVICES LEGAL SERVICES POSITIONS AVAILABLE POSITIONS AVAILABLE

C.W. JENNINGS 2 POSITIONS AVAILABLE MEDICAL COLLECTIONS For CAE Moldflow Analyst for INDUSTRIAL EXCHANGE 38 YEARS EXPERIENCE Exteriors America Holdings, Inc., in Troy, Global Industrial Consulting WORKERS COMPENSATION & AUTO ARCHITECT MI. Duties: Develop & complete process simulation from initiation to completion for Construction • Acquisitions Reasonable fees contingent upon recovery Highest Peer Rating A national real estate development company seeks a highly motivated injection molded thermoplastic auto Exporting • Financing Former Adjunct member of Workers Comp and organized individual to join their team as their architect in components, incl’g improving dimensional (855) 707-1944 Appeal Board Bloomeld Hills, Michigan. stability & cosmetic appearance of WILLIAM S. STERN - 248-353-9400 injection molded parts. Support current & www.sternlawfirm.com Responsibilities include: future mfg programs w/ filling, packing, Crain’s Classifieds Gets Results cooling, & warpage analysis utilizing • Prepare schematic design and design development documents Autodesk Moldflow software. Collaborate • Prepare construction documents for interior build outs w/ eng’g, tooling & mfg personnel to • Prepare illustrations for use in presentations optimize tooling & parts design & • Work with clients to select nishes processing windows of injection molded • Maintain up to date plans for all properties parts. Assist program teams in devel’g • Prepare preliminary conceptual site and building plans CAE quotes, & prepare tech’l Qualications: presentations as req’d. 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W ment of Housing and Urban Develop- lass — generally received enough 1. 86,000 “severely distressed” public architect behind and restoration of the street grid and pe- ment Choice Neighborhoods Program revenue from rents to support those Dequindr housing units would cost $5.6 bil- (formerly One Detroit Center) and destrian access from Brewster-Doug- grant funding. operations. e. lion, plus another $1.9 billion for re- New York’s World Trade Center — was lass/ into Eastern Market 75 Av atiot e plan, called the Douglass-Market There was no federal subsidy for Gr lated costs for a total of $7.5 billion one of the rst federally funded housing over I-75. About 22,000 square feet of re- project, one of the most expansive in re- the agencies. over 10 years, or $87,209 per unit. projects to be demolished. tail space is also planned. 1. Frederick Douglass housing site cent Detroit history, would be construct- But in the 1950s and 1960s, rental 2. Proposed pedestrian bridge Adjusted for inflation, that is Choice Detroit LLC, the chosen de- e retail is something that, with the 3. Shed 4 ed over ve years mostly on the site of revenue began to decrease as resi- 4. 3480 Russell St. $12.86 billion, or $9.6 billion for cap- velopment entity for the planned Doug- Brewster-Douglass projects, couldn't be what was perhaps the city’s most notori- dents who could afford homes ital improvements and $3.26 billion lass-Market sites, however, does in some sustained before the last of the towers ous public housing project and attempt bought them; and as racial turmoil for related costs, for a rate of $149,580 ways want what has come in the after- came down in 2014. to integrate economically diverse resi- reached boiling points, some fled the Commission on Severely Distressed per unit today. math of Cabrini-Green’s demolition. “ ese neighborhoods were where dents in a new community west of I-75 Brewster-Douglass and others, where Public Housing at the tail end of the Today, operating public housing costs With 65 acres, the site is planned for retail and businesses did not settle be- and south of Mack Avenue. large numbers of black residents from George H.W. Bush administration in the between $350 and $650 per month per more than 2,300 housing units, and the cause the incomes weren’t there,” Ince the South came during the Great Migra- early 1990s. unit for things like maintenance, taxes property has become a favorite of Windy said. Problem upon problem tion, Baron said. at unexpected situation ew in the and insurance, said Amin Irving, found- City developers since the last towers ere was a generational cycle of In Detroit, in St. Louis, in Chicago, With fewer units rented, fewer dollars face of the federal government’s working er of Novi-based Ginosko Development came down five years ago, Crain’s Chica- poverty that couldn't be broken, said Brewster-Douglass and other similar came in to pay for maintenance, and lo- theory in the Great Depression that pub- Co. and one of the developers behind go Business, a sister publication of Crain’s Kathy Makino-Leipsitz, who owns properties nationwide had fallen victim cal public housing authorities’ ability to lic housing would just be a short-term the planned Douglass-Market project. Detroit Business, reported earlier this year. about 1,600 units across more than 20 to crime, drugs and decay. perform even that most basic of tasks safeguard for struggling families. To be sure, Choice Detroit — the aordable-housing developments, pri- One problem begat another. en was almost permanently crippled. “Public housing when it originally be- The plan development entity consisting of Gi- marily in Detroit. another. All compounding until the sys- And fewer people could stomach gan was not intended to be a permanent e Brewster-Douglass trajectory nosko, Dan Gilbert’s Bedrock Real Es- “I saw the families, the grandmother, tem began to pancake under the weight. moving in, no matter how desperate. home,” said Harold Ince, deputy execu- was akin to that of the infamous Cabri- tate Services LLC; Columbia, Md.- daughter and granddaughter all move “ e way they are treating the resi- “You started to see this enormous tive director of the Detroit Housing ni-Green housing projects in Chicago based Enterprise Community Partners; into that same type of situation,” said dents; there are drugs; the maintenance concentration of low- and fixed-income, Commission, which owns the Brew- and the Pruitt-Igoe projects in St. Louis and KBK Enterprises, which has oces Makino-Leipsitz, who bought her rst is awful,” Baron recalled St. Louis public non-working families in these sites,” said ster-Douglass site. — the one whose 1972-76 demolition in Columbus, Ohio, and Pittsburgh — is low-income building in 1983. housing residents saying in the late Baron, who served on the National “It was a temporary help so that peo- was made possible by the work of Bar- envisioning a project far smaller in scale. " ey got caught in this kind of trap."

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Target projects growth and prosperity — if we have the on the hook for $9 billion in obligations. could apply to a single project, or a series e actual nancial impact to the BROWNFIELD e Hudson’s site is one of the most tools to do it,” Cullen testied this month A spokeswoman for Snyder said the of related developments. state is dicult to determine, but would FROM PAGE 3 prime pieces of downtown real estate, before a Senate committee. governor will review the bills if they land Cities would be limited to one trans- reduce general fund revenue by a “likely with 2 acres of vacant land along “As a state, we don’t have the eco- on his desk, but his oce did not say formational browneld project annual- signicant amount,” according to an depending on population. Woodward. Gilbert has said the nomic development tools we need to how the concept ts with his philosophy ly; the Michigan Strategic Fund could analysis by the Senate Fiscal Agency. e A variety of projects throughout the mixed-use project is expected to be unlock the large-scale, transformational on tax incentives. not sign o on more than ve statewide actual revenue loss would depend on ve-county region, including the rede- transformational to downtown, but projects that are going to truly move the “He hasn’t said ‘no,’” said Sen. Ken in a single year. how many such transformational proj- velopment of the Pontiac Silverdome in precious few details of the planning needle in revitalizing our cities,” Cullen Horn, R-Frankenmuth, who introduced “We kind of grew allergic to the tax ects are approved in a given year, how Pontiac and the Uniroyal site along the have been publicly disclosed. testied. “ e fact is that in many cases the main bill in the package Sept. 7 and credits. We have nothing to oer the re- large they are and how loosely the state Detroit River, for example, likely would In addition, Gilbert and Detroit Pis- there continues to be a gap between the held a hearing on them the next day in ally big investments,” Horn said. “ ere’s denes sales tax revenue as having meet the requirements of the legislation. tons owner Tom Gores in April pro- cost of development in our older cities the committee he leads. He hopes to still room for more tools. We just have to come from a particular development. State law currently allows developers posed a 20,000- to 25,000-seat stadium and what you can get back in rent.” vote them out of committee this week. make sure they all work and they don’t “Unlike tax credits distributed to a to capture the new property taxes gener- on the 15-acre site of the half-built Cullen’s statement underscores a “I think I’ve got a ghting chance.” over-promise.” taxpayer to subsidize an activity, which ated by the completed development. Wayne County jail, construction on point shared by others in the industry — Horn, Cullen and others say develop- are not subject to appropriation, the bills Proponents say a sweetened incentive which was halted three years ago and that Snyder’s 2011 tax overhaul went too How it would work ers would carry all of the nancial risk, would apparently authorize direct ex- could mean the dierence between a which Wayne County still owns. Coun- far in eliminating incentives for business If adopted, the bills would require since the incremental tax revenue would penditure payments to an owner or de- project happening or not, since brown- ty Executive Warren Evans has said he attraction and economic development. both the municipality in which the not have existed without the develop- veloper of an eligible property without eld projects inherently are expensive plans on moving forward with com- Some worry that Michigan is not as browneld is located and the Michigan ment. Horn said that is in part because an appropriation,” the agency wrote. and complicated. pletion of the jail project. competitive as other states, such as Tex- Strategic Fund, a division of the Michi- developers will have an interest in en- “Furthermore, the captured revenue And Gilbert, who has amassed more e Gilbert-Gores proposal in- as, when it comes to landing major cor- gan Economic Development Corp., to suring the developments are occupied and distributed payments would not be than 13 million square feet of real estate cludes a 500,000-square-foot soccer porate spending or large-scale real es- sign o on a developer’s browneld and gaining value. subject to any legislated maximum level holdings in and around downtown De- stadium anked by three 18- to 28-sto- tate projects. plan. Proposed projects would require a Property tax revenue also should rise other than equaling the sum of all costs troit since 2011, certainly has some proj- ry glass towers — one a hotel, one of- “ ese projects and others are ready nancial analysis before the incentive with the new developments, he said. To- permitted to be funded under the bills. ects in the works: Matt Cullen, Rock Ven- ces and one residential. to go,” Cullen said. “We are motivated to could be approved. day, many of the sites have little to no Because those costs would not be limit- tures’ principal, said in a ursday Less-discussed publicly, Gilbert’s get this thing done and get going. You Captured revenue could be used to value. ed, and could include costs incurred be- interview with Crain’s that this incentive team and General Motors Co. have hate to miss a window.” reimburse developers for any brown- “You’ve got nothing today. If we do fore the approval of a transformational could unlock at least $2 billion in proj- been discussing what to do with approx- Snyder in the past has resisted eorts eld-eligible costs, including demoli- nothing, you’ve got nothing tomorrow,” browneld plan, the bills would eec- ects by his company alone. imately 20 to 25 acres of largely vacant to add or restore tax credits. His adminis- tion, construction or restoration of Horn said. “If you have no occupancy, tively impose no limit on the amount of “ is is critically important for us,” land immediately east of the Renais- tration renegotiated credits with the De- buildings and other site improvements. no renters, no condo owners, no retail revenue captured. In the case of a trans- Cullen said. “But we all need it, from sance Center. troit 3 automakers under the defunct All projects would have to contain shops that come in, no oce space that’s formational browneld plan located in a Ann Arbor to Grand Rapids to Flint to “We have historic, beautiful cities that Michigan Economic Growth Authority mixed uses, including residential and leased out, then the state still loses noth- non-county municipality with a popula- Detroit.” we can turn into engines of the state’s program after discovering the state was commercial. e enhanced incentive ing.” tion of 600,000 or more, over time the CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 19 on and others beginning 48 years ago. But still signicant. Kowalski Sausage Co. Inc. The compa- didn’t have the capacity,” Pellerito said. negotiation with the purchaser on the “I think the real catalyst behind” In addition to the housing, the city PELLERITO ny has operated from the same site since “We could have gotten the business; it sales price.” more mixed-income developers, said also plans things like enhanced health, FROM PAGE 3 1987. was just a matter of how we were going e team is working diligently to be Irving, “was saying, ‘Hey, we don’t education, workforce development and Seeing opportunity for growth, to produce it.” more ecient and to make the process want the Cabrini-Greens of the world.” youth services; a new 1-acre public park is seeking to recoup the existing and Pellerito approached the city about buy- In the year and a half since, Pellerito of acquiring city-owned commercial e Pruitt-Igoe project — designed called Douglass Park at the Brew- new business with Sysco Corp. (NYSE: ing the property next to his production has secured about $2 million in new properties more timely, she said. by Minoru Yamasaki, the Detroit-based ster-Douglass site; and improvements to SYY) that it lost a year and a half ago site five years ago. It took two years to se- business. Word-of-mouth is yielding About a half mile away, Pellerito’s architect behind Ally Detroit Center and restoration of the street grid and pe- when it couldn’t ramp up capacity cure an deal with the city and get City new, small accounts which have helped neighbor Wigley’s Meats & Produce is (formerly One Detroit Center) and destrian access from Brewster-Doug- quickly enough due to delays in acquir- Council approval and another two were increase Pellerito’s revenue 8 percent so also looking to expand by acquiring both New York’s World Trade Center — was lass/Brush Park into Eastern Market ing land from the city, in part because of spent in a holding pattern while the city far this year, following 5 percent growth privately owned and city-owned land one of the rst federally funded housing over I-75. About 22,000 square feet of re- Detroit’s bankruptcy. went through bankruptcy, Pellerito said. each of the past two years, he said. near its Detroit production site. projects to be demolished. tail space is also planned. e company is also talking with po- The company paid $68,000 for the e company is looking to grow its It’s had an application to purchase Choice Detroit LLC, the chosen de- e retail is something that, with the tato farmers and other investors about property, which is south of its Mack Ave- $10 million in annual revenue. land filed with the city since late March or velopment entity for the planned Doug- Brewster-Douglass projects, couldn't be helping nance the expansion, in ex- nue site, between Hale and Scott streets, Still, “we’re not comfortable expand- early April, said co-owner Tom Wigley. lass-Market sites, however, does in some sustained before the last of the towers change for things like space sharing and bounded by St. Aubin Street. The deal ing yet,” Pellerito said. “We want to make “It takes quite a bit of time. Even if you ways want what has come in the after- came down in 2014. agreements to buy part of their crops. closed in April 2015 and included pricing sure the business is there before we know the people to contact, it still takes math of Cabrini-Green’s demolition. “ ese neighborhoods were where “We’re looking at early 2017 to con- credit for job creation and other factors, build something.” time.” With 65 acres, the site is planned for retail and businesses did not settle be- summate a deal for additional business the city said. e city did not comment on the e plan for that area has always more than 2,300 housing units, and the cause the incomes weren’t there,” Ince and/or strategic investors,” said owner The delays in obtaining the land and amount of time Pellerito said it took to been wholesale distribution, he said. property has become a favorite of Windy said. and CEO Jim Pellerito. expanding its production footprint and close on the purchase of the land. “I don’t know if the city is still looking City developers since the last towers ere was a generational cycle of Launched in 1943, Pellerito Foods capacity, however, cost Pellerito $2 mil- But Felecia Studstill, a contracted ac- at it that way. I think they’re thinking came down five years ago, Crain’s Chica- poverty that couldn't be broken, said claims it was the rst company in the lion in existing hash brown business with count executive for the more of retail and residential in that go Business, a sister publication of Crain’s Kathy Makino-Leipsitz, who owns country to sell peeled potatoes. Sysco and $8 million in new, annual Authority, said in an email statement particular area” near the northern Detroit Business, reported earlier this year. about 1,600 units across more than 20 Today, it’s one of the largest proces- business it would have gained if it had that the city averaged 218 days from ap- boundary of Eastern Market along To be sure, Choice Detroit — the aordable-housing developments, pri- sors of fresh, peeled, sliced and diced won the contract to become the food ser- plication to close for the 58 commercial Mack Avenue. development entity consisting of Gi- marily in Detroit. potatoes in the country, as well as vice company’s sole supplier of hash properties it sold this year, down from As reported by Crain’s last month, nosko, Dan Gilbert’s Bedrock Real Es- “I saw the families, the grandmother, cooked, refrigerated hash browns. And browns east of the Mississippi. Instead, 270 days. Eastern Market Corp. is negotiating a tate Services LLC; Columbia, Md.- daughter and granddaughter all move it supplies fresh-cut vegetables from as- the new business and its existing hash “ e processing and vetting time is land acquisition plan with the city that based Enterprise Community Partners; into that same type of situation,” said paragus to zucchini, purchased from lo- browns business moved to Minneso- generally fast on our end,” she said. would help it to expand its footprint to and KBK Enterprises, which has oces Makino-Leipsitz, who bought her rst cal farmers. ta-based Michael Foods Inc.’s Northern “ e total application through pur- more than ve times its current size. in Columbus, Ohio, and Pittsburgh — is low-income building in 1983. Its customers include Sysco, Panera Star brand. chase agreement time, though, is largely Sherri Welch: (313) 446-1694 envisioning a project far smaller in scale. " ey got caught in this kind of trap." Bread, The Kroger Co. of Michigan and “We were disqualied because ... we a function of the amount of time spent in Twitter: @sherriwelch

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could apply to a single project, or a series e actual nancial impact to the captures could exceed $500 million.” eyes in local and state government west Michigan First in Kalamazoo contamination. of related developments. state is dicult to determine, but would A portion of the income tax revenue watching the projects. have signed on to a coalition of devel- at could create opportunities for Cities would be limited to one trans- reduce general fund revenue by a “likely generated from new residents at a devel- “We are trying to be very careful and opers, development agencies and smaller projects in Flint, which other- formational browneld project annual- signicant amount,” according to an opment could be captured, according to thoughtful,” he said. “ e underlying chambers of commerce called MI wise would require at least $50 million in ly; the Michigan Strategic Fund could analysis by the Senate Fiscal Agency. e the analysis and committee testimony. goal in all of this is to make sure there is a Thrive. e group consists of more private investment under the bill. Flint not sign o on more than ve statewide actual revenue loss would depend on e Senate Fiscal Agency estimated the net gain for the state.” than a dozen members, though an of- has been struggling to recover from in a single year. how many such transformational proj- state’s income tax revenue losses could cial list wasn’t made available. lead-contaminated drinking water “We kind of grew allergic to the tax ects are approved in a given year, how total between $15 million to $45 million, Proposed impact e group’s members “share a caused by a state-appointed emergency credits. We have nothing to oer the re- large they are and how loosely the state using an average individual income tax e real impact, Horn said, is at the common goal: Helping move Michi- manager’s decision to draw tap water ally big investments,” Horn said. “ ere’s denes sales tax revenue as having liability of $1,500 in 2013 after credits local level. Individual communities will gan and its cities forward,” said Dan from the Flint River. still room for more tools. We just have to come from a particular development. were applied and an estimated 10,000 to be the ones to decide what “transforma- Austin, a senior account executive “ at excites us, obviously,” said make sure they all work and they don’t “Unlike tax credits distributed to a 30,000 tax returns from residents of tional” means for their residents. with Detroit-based Van Dyke Horn Bryce Moe, managing director of Flint- over-promise.” taxpayer to subsidize an activity, which transformational browneld projects. A $25 million project in Saginaw, part Public Relations, which is handling based Skypoint Ventures, which does Horn, Cullen and others say develop- are not subject to appropriation, the bills Additionally, Senate scal analysts of Horn’s Senate district, could “funda- public relations for the coalition. real estate development in the city and ers would carry all of the nancial risk, would apparently authorize direct ex- said the bills would create “extensive” mentally transform” its downtown. In southwest Michigan, there is pent- Genesee County. since the incremental tax revenue would penditure payments to an owner or de- administrative costs for the Michigan Browneld conditions in the city up demand for urban housing, while in Skypoint Ventures is considering two not have existed without the develop- veloper of an eligible property without Department of Treasury, which today “have frightened developers away Grand Rapids, the browneld incentive projects that could benet from the in- ment. Horn said that is in part because an appropriation,” the agency wrote. does not identify where sales tax reve- through the years,” JoAnn Crary, presi- could make it feasible for developers to centive, though Moe did not disclose developers will have an interest in en- “Furthermore, the captured revenue nue originates. e department likely dent of Saginaw Future Inc., the eco- pursue projects adjacent to downtown, details. suring the developments are occupied and distributed payments would not be would have to hire more employees and nomic development agency serving according to committee testimony. “ ese are projects inherently by na- and gaining value. subject to any legislated maximum level add informational technology systems Saginaw County, testied before the “ e transformation of downtown, ture in our urban areas that have a nan- Property tax revenue also should rise other than equaling the sum of all costs to track the source of sales tax revenue Senate panel. its neighborhoods and especially along cial gap, because the current business with the new developments, he said. To- permitted to be funded under the bills. across multiple sites, they wrote. One downtown project under con- the Grand River is not complete — but case is not there,” Moe said. “ ere’s a day, many of the sites have little to no Because those costs would not be limit- Local income taxes would not be sideration will require signicant invest- the easier projects are over,” Rick Chapla, whole list of reasons why, and this really, value. ed, and could include costs incurred be- captured under the bills. Horn said he ment and undertaking, she said, but it e Right Place’s strategic initiatives vice really goes after that and attacks that gap, “You’ve got nothing today. If we do fore the approval of a transformational has had discussions with the Michigan also could be a catalyst that leads to president, told the Senate committee. that space, in the project that a tradition- nothing, you’ve got nothing tomorrow,” browneld plan, the bills would eec- Municipal League, which supports the more development. e legislation includes a provision al investor or traditional lender does not Horn said. “If you have no occupancy, tively impose no limit on the amount of legislation “in concept,” and other local “It creates a nucleus so that we can that would waive the minimum private have the appetite for.” no renters, no condo owners, no retail revenue captured. In the case of a trans- government associations to address develop and build around it,” she said. investment requirement in communi- Lindsay VanHulle: (517) 657-2204 shops that come in, no oce space that’s formational browneld plan located in a concerns about possible lost revenue. Saginaw Future and regional eco- ties eligible for federal blight elimination Twitter: @LindsayVanHulle leased out, then the state still loses noth- non-county municipality with a popula- He said the legislation sets up a tiered nomic development agencies The Right funding or in a municipality under a Kirk Pinho: (313) 446-0412 ing.” tion of 600,000 or more, over time the approval structure, with multiple sets of Place Inc. in Grand Rapids and South- state of emergency for drinking water Twitter: @kirkpinhoCDB 20 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016

Some highlights of what Homecoming speakers and expats said “I’m a believer. I’m charged up. I think the things that people are talking about can happen. It will take tremendous energy and intelligence to make it happen, but I’m excited.” Former Microso Corp. CEO Steve Ballmer

“I’m a big believer that Midtown is going to be the Brooklyn, the SoHo of Detroit, the place where SCOTT SPELLMAN creative and innovative The opening-night scene: Candlelight and gra’ti in the long-closed Brewster Wheeler Rec Center, destined to be a new restaurant. stores and restaurants are going to occur.” Will Adler, owner, Will Leather Goods The faces of “Our business model used to be around building the car. … Everything we’re doing now — car-sharing, autonomous, Homecoming electri‚cation — is where customers are going and From smiles to laughter, to seriously will begin to go over time.” furrowed brows, the faces of event Dan Ammann, president, General attendees tell the story Motors Corp. AARON ECKELS Shinola founder Tom Kartsotis (right) speaks about developing a new Shinola hotel with Dan Gilbert (center) and KC Crain (le‰). “We don’t know shit from Shinola about running a hotel.” Tom Kartsotis, founder, Shinola/Detroit LLC

“I have no shame for Detroit. I had tremendous opportunities here. I was doing every job of a producer when I was young before I went to the University of Michigan.” Je„rey Seller, producer, “Hamilton”

“Most of the engineers there (Silicon Valley) have CHRIS EHRMANN grown up in the so‰ware Detroit booster Emily Gail o‹ers ways world. To be able to build expats can support the city. these kinds of vehicles, it’s a lot harder than it looks. This is something on a NUCLASSICA performs on ampli‚ed whole di‹erent scale than violins at Homecoming dinner. an iPhone.” AARON ECKELS Tony Fadell, founder, Nest and a father of the iPod

“It’s incredible how it’s come back. It’s just so exciting.” Emily Gail, longtime Detroit booster, current Hawaii resident

and creator of the “Say AARON ECKELS CHRIS EHRMANN Nice Things About Le: Gov. Rick Snyder presents the “Guvvy” to “Hamilton” producer and Oak Park native Je„rey Seller. Center: Ford Detroit” campaign Foundation CEO Darren Walker talks candidly about race with Crain’s Mary Kramer. Right: Inventor Tony Fadell (le‰) tells Autoweek’s Dutch Mandel that consumers will soon choose cars that “‚t their need” like they buy shoes for AARON ECKELS di‹erent occasions. CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 21 Projects to boost Detroit’s hotel rooms, but how many is too many? www.crainsdetroit.com point of demand experts say Detroit can Detroit’s central business district was or other event who can’t get a downtown By Sherri Welch Editor-in-Chief Keith E. Crain [email protected] absorb in the next few years. 67.6 percent, up from 66.3 percent for the room must be bused to the suburbs, Group Publisher Mary Kramer, (313) 446-0399 e Shinola Hotel project, an- Many of the announced hotels proj- same period of 2015, he said, referencing O’Callaghan said. or [email protected] Associate Publisher Ron Fournier, (313) 446-1674 or nounced last week, is the latest in a string ects are just plans at this point, said hos- data from STR. But many planners won’t go for that., [email protected] of hotel projects planned or underway in pitality expert Ron Wilson, CEO of Troy- The average daily rate for the same he said “They don’t want their attendees Editor Jennette Smith, (313) 446-1622 downtown Detroit. based Hotel Investment Services Inc. period increased to $154, up from $148 on buses.” or [email protected] Director, Digital Strategy, Audience Development Nancy While increasing investment in the “But if all of these projects were to for the first seven months last year and Besides the increased demand from Hanus, (313) 446-1621 or [email protected] city is good news, it raises the question: happen, I would be cautious about add- $141 for the period in 2014. conventions, more people are living Managing Editor Michael Lee, (313) 446-1630 Can Detroit support the number of hotel ing any more until that supply is ab- The occupancy number so far this downtown. And their relatives need or [email protected] Managing Editor/Custom and Special Projects Daniel projects planned and under consider- sorbed.” year is about 1.5 percentage points better someplace to stay when they come to Duggan, (313) 446-0414 or [email protected] ation for the central business district? With the increasing population, ac- than the counties of Wayne, Oakland visit, O’Callaghan said. Assistant Managing Editor Kristin Bull, Experts say yes. ere’s demand for tivity and corporate presence down- and Macomb, O’Callaghan said. The companies that have moved into (313) 446-1608 or [email protected] Digital Editor Carlos Portocarrero (313) 446-6056 or 800 to 1,000 more rooms downtown in town, there is undoubtedly support for In the years before Detroit’s come- the city’s core are also increasing de- [email protected] the next two to three years. additional rooms, said Mike O’Cal- back, suburban hotels would fill up first. mand for hotel rooms as their out-of- News Editor Beth Reeber Valone, (313) 446-5875 Six projects in development could laghan, COO and executive vice presi- But now, the Detroit hotels are, and the town employees come in for meetings. or [email protected] Senior Editor Gary Piatek, (313) 446-0357 bring roughly 970 more rooms to the dent of the Detroit Metro Convention & overflow is going to the suburbs. But is the demand sustainable? or [email protected] downtown market over the next few Visitors Bureau. Ideally, the downtown market could “I think so,” O’Callaghan said. “We Research and Data Editor Sonya Hill, (313) 446-0402 years, well within that range. Detroit’s downtown hotel occupancy use more rooms, including a large block know leisure visits are up and corporate or [email protected] Newsroom (313) 446-0329, FAX (313) 446-1687, But if the Crowne Plaza Downtown and average daily rates are up this year, of about 400 from a full-service conven- visitors feel more comfortable about TIP LINE (313) 446-6766 Detroit Riverfront moves forward with bucking the declines cities including tion hotel, he said. coming here,” he said. “And we’re getting REPORTERS construction of a second tower, as it’s Chicago, Pittsburgh and Cleveland have “The additional second tower at the more interest from groups and conven- Marti Benedetti General assignment (313) 446-0416 or considering, that could mean another seen this year, O’Callaghan said. Crowne Plaza would suit us nicely.” tions than we have in decades.” [email protected] 400 or more rooms. Year to date through July, average dai- Right now, during high-demand peri- Sherri Welch: (313) 446-1694 Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. And that would exceed the tipping ly occupancy for the 5,000 hotel rooms in ods, the people in town for a conference Twitter: @sherriwelch (313) 446-0325 or [email protected] Chad Halcom Covers litigation, the defense industry, education, Macomb and Oakland counties. (313) 446-6796 or [email protected] ly boring, pragmatic view on this that just in on housing, retail, buildings, infra- said, “We can do better than just doing Tom Henderson Covers banking, šnance, technology and BALLMER came to me today (during their visit to structure. You say, ‘OK, that’s fantastic, it that.” biotechnology. (313) 446-0337 or FROM PAGE 1 the mayor’s oce) … really is, but what are the other supports And so I said, “I’m really going to [email protected] Kirk Pinho Covers real estate, city of Detroit. (313) When there is a lack of leadership or a that they’re going to wind up wanting to prove to you what happens to govern- 446-0412 or [email protected] very informative because it was my rst lull in leadership what often happens in put into that neighborhood or how do ment money.” I said there should be Adrienne Roberts General assignment, retail. (313) job, and in a way you learn a lot as a cad- a city or an area is you have all these non- the social services come together around something like a corporate 10K for gov- 446-1612 Bill Shea, enterprise editor Covers media, advertising and die, you meet a bunch of dierent kinds pro ts arise because they’ve all got to try that neighborhood?’ … And you can’t ernment, and there really isn’t. And marketing, the business of sports, and transportation. of people. to — you know, the system is broken so just start from scratch: You’ve got to have when I said “government,” I don’t mean (313) 446-1626 or [email protected] Lindsay VanHulle, Lansing reporter. (517) 657-2204 How about relationships, being we’re all going to get around the system. a not-for-profit that wants to focus in on federal, state, local. Put them together, or [email protected] around people who are older than, So that’s lovely and that’s innovation, that kind of an area. because who knows who pays for what? Dustin Walsh, senior reporter Covers the business of law, more experienced probably, even and there’s so many great ideas, but Connie: I felt the morning was really I hate to ask people to write my auto suppliers, manufacturing and economics. (313) 446-6042 or [email protected] wealthier than you … ? there’s also a point at which a communi- hopeful in that we were in the mayor’s lead, but it’s a good way to help me see Sherri Welch, senior reporter Covers nonprošts, services, Steve: You learn some stu. It’s inter- ty can just have either too many non- office and met a lot of his team and they if I’m going too far. Obviously, the food and hospitality. (313) 446-1694 or [email protected] esting … whether it’s Taubman. He paid pro ts to support or they’re duplicating were … wealthiest living Detroiter and his very ADVERTISING well. He paid really well. each other and ... Steve: … and the mayor. well-informed and compassionate Sales Inquiries (313) 446-6032; FAX (313) 393-0997 What kind of guy was he? Steve: Or they’re all sub-scale or none Connie: And they were incredibly en- wife have decided to put money in Advertising Director Matthew Langan Senior Account Manager Katie Sullivan Steve: All I remember is, if you were a of them can ever fund-raise. ergized. These are people who have been places that can help bring to scale Advertising Sales Christine Galasso, Gerry Golinske, Diane young caddie — he always took a cart, if Connie: And they’ll never get very far. in really stellar professions elsewhere, solutions that are working in a big way Owen, Sarah Stachowicz you were a young caddie who didn’t … And even if they do good for 50 peo- and they chose to come back here under now. And you’ve gone to a few cities ClassiŠed Sales Manager Angela Schutte, (313) 446-6051 know how to drive a cart, it wasn’t the ple, that’s awesome, but as a funder you this mayor because they knew that work and one of them is your hometown and ClassiŠed Sales Lynn Calcaterra, (313) 446-6086 easiest world. (Laughs) don’t want to sort of enable bad behav- was being done. you’re very impressed by the political Marketing/Events Director Kim Winkler You were a caddie that didn’t know ior by supporting a little bit of everything. Steve: Normally when I come back to team in place. How likely is it that that Events Manager Kacey Anderson Senior Art Director Sylvia Kolaski how to drive a cart? At this point, and I guess this is where I’ve Detroit I see no hope, and I think Connie will equal some Ballmer money in De- Marketing Manager Marilyn Banes Steve: Exactly. gotten very pragmatic, we’re really inter- just framed it perfectly. troit? Special Projects Coordinator Keenan Covington Connie: He does now. ested in scale and we’re interested in Connie: A great team of people. Good Connie: Someday? Sales Support Suzanne Janik Production Manager Wendy Kobylarz Intergenerational poverty is an epi- what can reach the most people. goals and … Yes. Production Supervisor Andrew Spanos demic in the country right now. Steve: Scale and replicability. … Steve: A real plan. Connie: I’d say very likely. CUSTOMER SERVICE Steve: We are looking for good oppor- Philanthropy has got to pick and choose Connie: And it takes so long, right? Ev- Steve: Very likely. I don’t know if it’s Main Number: Call (877) 824-9374 tunities to support community organi- its role. erybody has got to be in it for the long tomorrow. or [email protected] Subscriptions $59 one year, $98 two years. Out of state, zations, government projects, as well as Let’s talk about what you learned haul, and you’ve got to be patient. They I’m not asking about tomorrow. $79 one year, $138 for two years. Outside U.S.A., add $48 per traditional not-for-pro t innovations about Detroit and how Detroit could seem to have a great start. They would be, Steve: We’re trying to set expecta- year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. amongst those communities. Private be a good place to experiment with for example, we haven’t made any com- tions because we’re not erratic. We Single Copies (877) 824-9374 money is never going to ll in all the your philanthropy. mitments or decisions and we don’t build steadily. Reprints (212) 210-0750; or Krista Bora at gaps, it’s mostly got to be used as venture Steve: The thing we did today was know what we’re doing ever here yet be- Connie: is is the deal, Ron. It’s re- [email protected] To Šnd a date a story was published (313) 446-0406 or capital if you’re willing to try new things, cool. We went and visited this redevelop- cause we’re learning, but that is a group ally hard for outsiders to come to a city, e-mail [email protected] spark new things, and get things o the ment project at Livernois and McNich- that would be fun for somebody like us to a region, and make smart decisions, Crain’s Detroit Business is published by ground. ols, what they call Live/Six. And they’re partner with. and so we don’t want to come and say, Crain Communications Inc. (Crain’s tells the Ballmers about a pushing to have parts of the neighbor- Being a native, how much are you “We know what’s best for you people.” Chairman Keith E. Crain President Rance Crain small literacy program in Detroit.) hoods really invest in some areas so they going to want to put a thumb on the And people hate that, especially Treasurer Mary Kay Crain They’re solving a problem for a handful can become what I call little towns, real scale and help Detroit? here. Senior Executive Vice President William A. Morrow of kids. Is this the kind of program that community neighborhoods with retail, Steve: (Laughs) We’re here for De- Steve: And we don’t know what’s best Executive Vice President/Director of Strategic Operations Chris Crain might get your money? walking and all this stuff. Sounds like a troit Homecoming, but it is not acci- for people, Ron. Executive Vice President/Director of Corporate Connie: Let me give you just a brutal- great idea and the guys are very focused dental (that they toured the city and Connie: And so to come into an area, Operations KC Crain talked to the mayor’s sta). we want to do it really thoughtfully, and Vice President/Production & Manufacturing Dave Kamis we would want to have somebody on INDEX TO COMPANIES So when I get to writing my lead, Chief Financial O”cer Bob Recchia These companies have signicant mention in this week’s Crain’s Detroit Business: how far over my skis do I get? the ground. We would have to … really Chief Information O”cer Anthony DiPonio Steve: (Laughs) I’m from Detroit! I’m learn about these people in the mayor’s G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Center Healthcare Research/Transformation ....10 New Economy Initiative ...... 13 from Detroit! I think there’s important oce, what’s going on with your county, Editorial & Business O”ces Central City Integrated Health ...... 7 Pellerito Foods ...... 3 work going on here, and we are really, and we’d have to really learn before we 1155 Gratiot Ave., Detroit MI 48207-2732; Continental Structured Plastics Holdings ...... 3 Priority Health ...... 10 really, really glad to be learning about it. come in and make those (donations). (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET Detroit Central City Mental Health ...... 7 The Right Place ...... 19 Tell me about your interest in gov- And we’re just not there yet. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, Detroit Housing Commission ...... 18 Rock Ventures LLC ...... 3 ernment reform. But you’ve already committed to except for a special issue the third week of November, and no issue the third week of December by Crain Communications Inc. at 1155 Gratiot Develop Detroit LLC ...... 14 Saginaw Future...... 19 Steve: This came out of a discussion learning more about Detroit? Take Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and DTE Energy ...... 4 St. Joseph Mercy Health System ...... 9 Connie and I had about supporting peo- that next step. additional mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Jackson Health Network ...... 10 Skypoint Ventures ...... 19 ple. I said, “The money we don’t give Steve: is is a place of interest. Yes! Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. M-1 Rail ...... 8 Teijin Advanced Components America ...... 17 Contents copyright 2016 by Crain Communications Inc. All rights away is going to go to the government, Absolutely a place of interest. reserved. Reproduction or use of editorial content in any manner without Mich. Dept. of Health and Human Services ..... 9 University of Michigan Health System ...... 11 and they’re going to give it to sick people, Rachel Fritz contributed to this permission is prohibited. Mich. Primary Care Transformation Project ...10 Wigley’s ...... 19 poor people and old people.” And she story. 22 CRAIN’S DETROIT BUSINESS // SEPTEMBER 19, 2016 ON THE WEB RUMBLINGS WEEK SEPT. 10-16 State cites DMC Homecoming news DTE seeks operator A summary of some of the news that came out of the Detroit for health code Homecoming: for new HQ restaurant violations Producer’s promise: ‘Hamilton’ is coming to Detroit TE Energy Co. is looking for an a 270-degree NanaWall that can Doperator to helm the fully open during warmer seasons ack of employee training and Oak Park native Jerey Seller, producer of Broadway’s blockbuster show 4,000-square-foot restaurant it will to showcase panoramic views of the management oversight were two “Hamilton,” told Crain’s Associate Publisher Ron Fournier that the hit open next summer in the 1.5-acre new park and downtown Detroit Lof eight health code violations found hip-hop musical will come to the city in the next 2½ years. triangular park it’s developing just skyline,” the company said in a in a state inspection report issued Seller wouldn’t specify a date, but he said unquestionably the show outside its headquarters at 1 Energy notice. about the sterile processing depart- would appear at his favorite venue, the Fisher Theatre. Plaza in Detroit. DTE has hired real estate broker ment at four hospitals that are part of According to the specs, the venue Kees Janeway, founder and CEO of Detroit Medical Center. DMC has 60 Will Leather to move some operations to Detroit will be a “two-story contemporary Birmingham-based Kees Corp. LLC, days to submit a corrective action building with a cantilever roof” with to handle the search. plan or face possible sanctions, a Will Leather Goods will relocate its hat manufacturing and e-commerce 110 seats, 85 inside, and a e 56,000-square-foot park is spokesman for the Michigan Depart- operations from Oregon to Detroit and hire 50 more 750-square-foot roof deck and bounded by Grand River Avenue, ment of Licensing and Regulatory staers over the next 18 months, its owner told Crain’s. outdoor patio bar. It will have daily Plaza Drive and First Street in the Aairs said. e LARA report “We’re in the process of beginning to do some lunch, dinner and cocktail service, heart of the central business district. pertained to Detroit Receiving, Harper manufacturing in Detroit. We’re going to bring our hat weekend brunch and a “moderate DTE bought the land around 2012, University, Children’s and Hutzel shop to Detroit,” said Will Adler, who founded the price point.” but it hasn’t disclosed the acquisition Women’s hospitals. Eugene, Ore.-based luxury leather products maker that “Surrounding the dining space is and development costs. has a retail outlet in Detroit’s Midtown area. COMPANY NEWS He opened his 9,000-square-foot retail space at 4120 n Chick-l-A, the Atlanta-based Second Ave. (the old Tom Boy Super Market) in Health care leaders back RTA millage rate fast-food chain, is set to open Oct. 13 November 2015. A Detroit native, he attended the Will Adler: Plans in the Somerset Collection in Troy. A inaugural Homecoming in 2014. A group of health care leaders is System, will describe patients whose stand-alone restaurant in Lansing is local moves. speaking out in favor of a proposal on conditions were made worse scheduled to open the same day. Early talk on Pistons playing in Detroit the ballot Nov. 8 that would increase because they lacked reliable n e Detroit Lions are worth taxes by $2.9 billion over 20 years to transportation. One young girl was $1.65 billion, which represents a $210 Talks to bring the Detroit Pistons to downtown Detroit to play the support the Regional Transit unable to get a ride to the pharmacy million year-over-year increase in occasional game — or perhaps even all their games — at the new Little Authority bus system in Southeast to ll her asthma prescription and value but still ranks the team as the Caesars Arena are in the earliest of stages, one of the Michigan and a commuter rail line to ended up back at the doctor’s oce second-to-last in worth in the key gures said. Ann Arbor. with an exacerbated breathing 32-team National Football League, Tom Wilson, the former longtime president of Palace On Monday at 10:30 a.m., the problem. according to annual estimates Sports & Entertainment and the Pistons who now health care leaders will hold a news Attisha is the husband of Mona released by Forbes.com. works for Detroit Red Wings and Tigers owner Mike conference at Eastern Market’s Shed Hanna-Attisha, M.D., who gained n e DoubleTree by Hilton Detroit Ilitch as head of Olympia Entertainment, described the 5 to explain why they are supporting fame last year by blowing the whistle hotel in Novi has completed a $3.5 discussions as talks to begin talks, or pre-negotiations. a “yes” vote for the expanded on problems with excessive lead in million renovation of its rooms and ere’s no deal in place now, Wilson said. regional transit system. e ballot water supplies in Flint. suites, meeting spaces and an His remarks came during a breakfast session at Cass question asks taxpayers in Oakland, e health system executives outdoor courtyard. Technical High School’s media center, overlooking the Wayne, Macomb and Washtenaw include: n Dearborn-based auto supplier arena now under construction. Tom Wilson: Talks counties to approve a 1.2-mill tax. n Jean Meyer, president and The Oakwood Group plans to spend before talks? Four hospital executives and a CEO, St. John Providence Health $5.2 million to expand its operations Opel to be built in Orion? ‘Perhaps’ pediatrician will present internal System. in Taylor and hire 50 employees, the studies that show how missed n Conrad Mallett, chief Michigan Economic Development General Motors Co. may build the 2017 Opel medical appointments are administrative ocer, Detroit Corp. said. Ampera-E electric car in Southeast Michigan. sometimes caused by lack of Medical Center. n Alrig USA LLC, a Bingham GM President Dan Ammann hinted the European transportation. Over the next n Bob Riney, Henry Ford’s Farms-based real estate investment market car could share the same production line with several months, health care leaders executive vice president and COO. and development rm, acquired the its North American version, the Chevrolet Bolt, at Orion will try various methods to spread Riney also is chairman of the 21,000-square-foot The Crossings Assembly in Orion Township. When asked if the the word on the importance of Michigan Health & Hospital strip shopping center in southern Ampera-E would be built in the U.S. next to the Bolt, approving the taxes for a better bus Association board. Kent County’s Gaines Township from Ammann responded, “perhaps.” system. n Paul Conway, chief human Grand Rapids-based V&V Crossings Ammann, a native of New Zealand, also revealed he Dan Ammann: Elliott Attisha, a pediatrician resources ocer of Beaumont LLC. Terms were not disclosed. now is a Detroiter. Last year, Ammann bought the Drops a hint? employed by Henry Ford Health Health. n A First Choice Urgent Care Fisher Mansion in Detroit’s historic Center location is to open in Garden neighborhood. e 15,000-square-foot home, built in 1926, has 15 City, adding to one in Dearborn. bedrooms, 15 bathrooms and an eight-car garage. Detroit trademarks Project Green Light n The Container Store, a Texas- based retailer that specializes in IPod creator Fadell in the car biz e city of Detroit has to protect the name to keep organizational and storage products, trademarked “Project Green Light merchants who aren’t in the program opened its second location in Founder and former CEO of Nest Labs and iPod creator Tony Fadell is Detroit.” from claiming or advertising that Michigan in the former Loehmann’s now in the car business. e trademark ling appears to they are. woman’s clothing store in Troy. Its A Grosse Pointe native, Fadell, along with CEO Dave Bell, created hint at protecting “signage, lighting or Earlier this month, Mayor Mike rst Michigan store opened in June in California-based Actev Motors, a builder of connected go-carts. green light logo signifying Duggan and Comcast announced an Novi. e $999 go-carts are connected to the internet and cater to children 5-9 participation” in Project Green Light, expansion of the program designed n e 2-year-old Detroit City years old. e carts go into production in China next week, but Bell said the a public safety program that began in to allow more business participation Distillery in Eastern Market is plan is to bring nal assembly to the U.S., hopefully in Detroit. January and uses a central camera by decreasing the upfront cost to planning to expand its production system, high-resolution cameras and businesses. into the former Stroh’s Ice Cream bright lighting to capture clear e city said upfront costs could Factory and Goebel Brewing Co. plant OTHER NEWS Benson, who is leaving her post as law images of license plates and be upwards of $6,000, while under across Gratiot Avenue, where it will n Dan Gilbert and Stephen , school dean to become CEO of the criminals. the partnership with Comcast, they begin distilling whiskey this fall. two of Wayne State University School Ross Initiative in Sports for Equality, But little ocial reason was given could be as little as $1,000 for camera n A re suspended operations at of Law’s most successful alumni, each founded by Ross, the chairman of real why the city wanted the trademark. installation and $140 per month for the Kar’s Nuts plant in Madison donated $5 million to the school, estate development company The “ is particular application was cloud storage and camera lease. Heights, AP reported. making the largest donations in the Related Cos. and owner of the NFL’s led in the normal order of Project Green Light started as a n Revenue for the three Detroit law school’s history. eir $10 million Miami Dolphins protecting the city and its interests,” pilot program in January with eight casinos dropped 2.2 percent in gift creates the Benson Legacy Fund n e Detroit Federation of Melvin “Butch” Hollowell, Detroit’s gas stations and has since expanded August compared with July, for Wayne Law and Benson Endowed Teachers said its members ratied a corporation counsel, said in an to include other types of businesses, according to the Michigan Gaming Enhancement Fund for Wayne Law. new deal with the city’s new school emailed statement. including liquor stores and Control Board. e gifts are named after Jocelyn district, AP reported. A likely reason: e city is looking McDonald’s restaurants. DBpageAD_DBpageAD.qxd 9/15/2016 9:16 AM Page 1

25TH ANNIVERSARY

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