CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND : BACK IN BUSINESS

Brand Back in Detroit: business

PAGE 162 PAGE 163 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

Anyone even vaguely interested in redevelopment, placemaking or place branding would be familiar with reports about Detroit and its resurgence, as a city, a community and as a brand. The Place Economy visited the legendary ‘Motor City’ to witness this transformation first hand. We spent time at , whose founder, , is the man often credited with kick-starting Detroit’s revitalisation, and at the headquarters of Shinola, the high- end watches with a brand DNA entirely rooted in ‘Built in Detroit’.

These days the population of Detroit sits at around 677,000; this is compared to 1950 when around 1.8 million people called the city home. Back then, Detroit was the fourth largest city in the US and carried the mantle of automotive centre of the world. This combined with its reputation as a hotbed for musical talent led to the nicknames, Motor City and Motown Detroit. But the population has waned in the past 60 years, Detroit’s image morphing to symbolise urban decay as abandoned homes and buildings became the norm.

In 2017, however, US Census Bureau estimates showed Detroit’s population loss had slowed to its lowest pace in decades and experts noted the first signs of growth since the 1950 heyday. When the Detroit Regional Chamber released the 2017-18 State of the Region report, its president and CEO, Sandy Baruah, said the renaissance was “private sector led, technology focused, and sustainable”1. For the fourth straight year, the Detroit region had outpaced the national average in private sector job growth. Back in 2014 Sandy had already made the point that “the Detroit brand matters, and it’s that reputation that will attract a new generation of young entrepreneurs”.2 In his observation, the brand of Detroit was far better known and recognised globally than the brand of so, he said, “We need to fix that brand, and that brand needs to stand for something, and it needs to be real.”3

Today ‘brand Detroit’ is on the rise. The region is home to 11 of the 17 Fortune 500 companies with headquarters located in the state of Michigan. is anchored by the healthcare, government, and manufacturing sectors. Penske Corp and Rock Ventures currently lead as metro Detroit’s largest private companies, together generating more than US$35 billion in annual revenue.4 —

PAGE 164 PAGE 165 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

Detroit, US Population – close to 680,000 Area – 370 km2 Median age – 35 years

1. The Westin Book Cadillac Detroit 2. 3. City of Pontiac 4. Woodward Avenue 5. Detroit City Council 6. Detroit River 7. The Belt 8. Shinola Headquarters 9. Shinola Detroit Store 10. Wayne State University 11. West Village 12. QLINE Grand Blvd Station

Since moving the headquarters of his company Inc. to Detroit’s central business district in 2010, Dan Gilbert, Quicken’s founder and chairman, has helped create thousands of jobs. Meet Rock Rock Meet Ventures

PAGE 166 PAGE 167 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

01 PAGE 167 Dan Gilbert is founder THE QUICKEN LOANS HEADQUARTERS AT and chairman of America’s THE ONE CAMPUS largest mortgage lender, MARTIUS BUILDING. THE COMPANY Quicken Loans Inc., as well CONTRIBUTES TO SEASONAL PUBLIC as Rock Ventures LLC, PROGRAMMING IN THE PRECINCT SUCH the umbrella entity for his AS ICE SKATING, HORSE-DRAWN portfolio of business and CARRIAGE RIDES AND real estate investments. STREET PERFORMERS. 02 GREEKTOWN, In 2010, Dan relocated the DETROIT’S HISTORIC COMMERCIAL AND headquarters of Quicken ENTERTAINMENT DISTRICT, KNOWN Loans, complete with 1,700 FOR ITS GREEK- employees, to Detroit’s central THEMED EATERIES. business district and has continued to move his family of companies to the area in his quest to lead a city- wide transformation. In 2010, he also founded Bedrock Detroit, a full-service real estate firm specialising in acquiring, leasing, financing and managing commercial and residential space. That same year, with entrepreneurs Josh Linkner and Brian Hermelin, he launched a venture capital firm investing in seed and early- stage technology companies to be located in the city. Since then Rock Ventures and its affiliates have plunged more than US$5.6 billion into acquiring and developing over 100 commercial properties, equating to 1.5 million square metres in the city’s urban core. Thousands of jobs have been created and today more than 17,000 Rock Ventures team members work in .

02

PAGE 168 PAGE 169 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

03 – 05 Retaining established DAN GILBERT’S COMPANY INVESTS IN Detroit eateries, THE CITY, INCLUDING REDEVELOPMENT including the original AND ACTIVATION OF PARKS AND ethnic restaurants PUBLIC SPACES. reflective of the residents’ mixed heritage, is a point of pride.

03 04 05

Two key members of the Rock signalled something might be happening like 1,300 each season. We get around shop or Red Oak (coffee) Roasters… To keep a talented new headed off to New York, Chicago, Miami choose Detroit because they know there Lighthouse so when you see the Project Ventures, George Roberts (senior director in the city’s downtown. Constructed in 22,000 applications from all over the it’s people opening up small business, and DC. Dan Gilbert says the bright are things going on all over town.” Lighthouse sticker outside a lobby, know of civic development, place activation/ 1924 and known as the Book Cadillac, world and over 200 universities (including creating cool blocks.” generation in Detroit, 22-year-olds from University of Michigan The efforts seem to be working. you can come in and be greeted by art) and Andrea English (communications the building had once been among the Harvard, Princeton and Georgetown) are Adding to this VFR is the work done investment in the city would decline great job offers at Quicken In 2015, fortune 500 company Fifth security personnel who can help with associate), sat down with The Place Economy city’s most illustrious hotels. When the involved. So much has happened; we’ve by Rock Ventures’ civic development Loans in the past because they didn’t Third Bank moved 90 employees into any situations.” to explain how Rock Ventures approaches Westin restored its original splendour, amassed at least 95 properties so it can be and place activation team which George must resume. want to drive to a parking lot in the new regional headquarters at One Working closely with the city may development and placemaking in Detroit. George says locals began saying, “Wait hard to keep up with. Our maps are says spans “civic and commercial”. suburbs, take an elevator up to an office Woodward Avenue in downtown Detroit. well be another of Rock Ventures’ secrets “Doing well by doing good” is not a minute, something real might be constantly being updated.” “You could say we serve as the arm of and look out a window with a view of The bank’s senior executive team and all to success. The company has a good just one of Dan Gilbert’s favourite happening here. A building that has sat For George, all this activity meant the company that invests and activates the expressway. They wanted to be in commercial, business and private bankers, relationship with Detroit’s planning sayings but also the mantra that powers empty, that was an important building for a new sense of optimism in the city. projects around the city, community an urban core.” wealth management staff and support director and Mayoral offices which is Rock Ventures. It defines the company’s our parents and grandparents, is coming “People here have heard a lot of promises projects. My particular focus is on the To keep a talented new generation staff soon followed. Fifth Third Bank now essential when it comes to working intentions and goes a long way to back to life. A number of changes like over the years, promises that haven’t been redevelopment and activation of parks in Detroit, investment in the city must occupies four floors at One Woodward, beyond the CBD, helping to rejuvenate explaining its investments in public places. that have coalesced over the years and delivered upon,” he observes. “Dan likes and public spaces throughout our town,” resume. “The city needs projects that equating to around 5,750 square metres. other parts of the city. “We’re trying to bring people together together helped move us forward.” to use the aeronautics analogy of he explains. the people who have lived in Detroit for a draw people and this doesn’t just apply Part of ensuring the town’s appeal “We were really excited to be selected in a city that has had a lot of tension and When Rock Ventures moved to the instrument flight rules (IFR) versus visual Rock Ventures is also improving long time as well as those coming in from to the inside of buildings, it’s all the has meant combatting Detroit’s and named by the city as the official disconnect over the years,” says George neighbourhood it did so in waves. flight rules (VFR). You can have your transport in Detroit. “We’re in the process elsewhere. “These are the people who see spaces in between,” George says. “We reputation for being unsafe, a criticism housing implementation entity on their Roberts. “It’s our goal to bring folks Thirteen hundred staff members arrived instrument sense of what is happening of building a light-rail system that’s going the opportunity here in Detroit,” he says, want all those people to leave University commonly applied to cities where application for a US$30 million-dollar together – which means you’ll walk first, gradually followed by more. “In a but then you have your visual sense. to travel a total of 6.6 miles and connect “whether that be in tech, or in the service of Michigan, leave Michigan State, and abandoned buildings and neglected Choice Neighbourhoods Grant,” says through our lobbies today and find that few short months, everyone in Michigan With Detroit, there are a lot of metrics downtown to midtown – hopefully industry or construction. Our goal is to say, ‘I want to be in downtown Detroit’. streets encourage nefarious activities to George. “The grant was aimed at almost every one of them is open, with was basically downtown – spread across that say the city is making a turnaround connecting even further in coming years,” build spaces and places that draw people We want employers to locate to the city flourish. Even in this area, Rock Ventures redeveloping what used to be high-rise wi-fi charging and comfortable seating. just a few blocks,” says George. “And or comeback but I think our staff or your says Andrea. “Quicken Loans has the in from around our metro area, around because they know this is where people has stepped in to help. housing projects in the Office buildings in the USA do not do people weren’t saying they didn’t want to local Uber driver are the ones who naming rights so, while it’s the M1 Rail the country, around the world, and grow want to work.” “We’ve made safety and security in the neighbourhood. It’s great to partner with that. To us, creating alternative office come here. They were saying,‘When can actually see what is happening – see that System, it’s going to be called the Q Line. because we’ve created places where To achieve this, George thinks you downtown core a major priority,” says the city on all these kinds of projects.” spaces, where you can hang out or work, we go to Detroit?’” it’s real. And it’s not just one big project This is a private-public partnership people want to be.” have to “make sure every step people take George. “We have a full security team Money, or a lack of it, has been a big no matter who you are, is an important Andrea says it was “an interesting coming from the top down either. It’s a lot funding effort for a transit system. There Rock Ventures sees university on the sidewalk offers something exciting, working down there, in partnership with problem for Detroit. The city filed for way to activate the city – helping us bring time” because no one else was making of different things coming from all over. are many companies involved.” graduates as a crucial group to attract. active and vibrant”. “This has been a big the city, the police department, other Chapter 9 protection in July 2013, with an folks together.” that kind of move. “Now we’ve created It’s people in the West Village setting up George says Rock Ventures is taking a “We’ve got a bunch of great universities part of our strategy, both downtown and businesses and business groups, just to estimated US$18-$20 billion debt, giving It was the 2008 arrival of a Westin over 8,000 new jobs and we hire a coffee shops or a series of villages on the two-pronged approach to improving and in this state,” says George, “but for too around the city, not just within the central monitor and keep the area safe. We’re it the dubious honour of being one of hotel in Detroit that, in George’s mind, plethora of summer interns, something east side. It’s Paramita Sound record reinvigorating the city, trying to cater to many years, people graduated, then business district. We want people to part of a program called Project America’s largest municipal

PAGE 170 PAGE 171 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

bankruptcies. The fallout was nasty of the world what the city and its people that revitalisation along Woodward and far-reaching but, Andrea says, in was capable of achieving. “There is no Avenue to Washington Boulevard will hindsight, it can be seen as the catalyst doubt that if we work together and open continue, bringing jobs and energy and for what has taken place since. “It was ourselves up to the creative ideas and new civic pride. a new beginning.” exciting opportunities all around us, “Locals are actually quite patient and A native of Detroit who was living Detroit will inspire people from within understanding with this process,” says in New York at the time, George recalls and beyond its borders to transform our George. “In some cases, these dilapidated how people would regularly ask questions city into one of the biggest success stories or neglected iconic buildings have become about his hometown, “the city that went of the 21st century,” he wrote. like wallpaper. So, the idea that somebody bankrupt”, and he found himself By the time of the bankruptcy andits could turn them around is pretty exciting. constantly explaining that this had been aftermath, the CBD was blighted by And from our commercial point of view, a long time coming. “It’s not like numerous empty blocks, giving the city it’s the right thing to do for our economy we suddenly realised we were in bad a strange and confronting air. Fortunately, and our city; it’s not an act of charity.” fiscal shape,” he says. “But this was an as George explains, a lot of architectural Wherever the company chooses to opportunity for us to reconfigure some gems were retained – buildings of develop, one thing that prevails is the things - a lot of great things. It was like international significance or “evidence conscious and consistent attention it gives everyone had a new perspective or of grand design” as he describes it. to retail curation, including food, beverage outlook - a new vision of what the future Rock Ventures’ ability to invest ‘patient and fashion. This has led to hometown would be.” capital’ is helping in this area too. “There boys such as menswear designer John It’s even a positive from a are transformational projects we’ve Varvatos returning to town. Well known development point of view now, according supported or put forward ideas on, ones to George. “We see the opportunities, that others may not have the ability to,” as do our competitors,” he explains. says George. “Some of these include “If you know this place you know we still former brownfield sites which entail have so much city to go. And that’s not years of carrying costs – just in terms “Doing well by doing just the big parts of downtown but all of remediating these sites.” good” defines the the nooks and crannies, then all the One of the lost landmarks yet still neighbourhoods and residential.” beloved local sites is where the old company’s intentions George also feels the bankruptcy Hudson’s store (the J.L. Hudson Building and goes a long brought the people of Detroit closer on Woodward Avenue) once stood. together. “We had spent so many decades Andrea describes it as “an iconic piece way to explaining fighting each other about so many things, of Detroit”, the place where every kid its investment in the suburbs versus the city, black versus went to see Santa to make his or her public places. white, the people versus the cops, Christmas wishes known. eventually we realised we were all each Because of this, George says the other had. No one was coming to help. company is being “very careful and Detroiters were in this together. Also, the deliberate” about what it does. “We city was running so many things that cities know how important it is to folks,” for celebrity collaborations with rockers are not good at, things most of them he explains. “We have to do something such as KISS, Iggy Pop and Ringo Starr, stepped away from a long time ago, like that is a huge contribution from a the fashion house reports annual sales in power and lighting, garbage removal, design perspective, as well as a civic and the range of US$250 million and has 24 running a 982-acre island park (Belle Isle commercial perspective.” stores globally. The Detroit store, within Park, on the Michigan side of the Detroit This is something the team is getting a restored 19th-century building on River). There was a lot of things that very used to. A few years ago, Dan Gilbert Woodward Avenue, opened in 2015 and needed to change to public-private acquired the historic 38-storey Book was the company’s first in the Midwest. partnerships. The bankruptcy was a good Tower, which is attached to the13-storey During opening night celebrations John’s time to figure those things out.” Book Building and an adjacent two-storey long-time friend and fellow Detroit native, In November 2014, when Detroit community centre. The trio’s combined Alice Cooper, performed. The designer eventually won court approval for its plan footprint totals around 517,000 square told the New York Times he chose to open to exit bankruptcy, Dan Gilbert wrote feet. The Book Tower was designed by the new flagship after being “blown away a blog saying “the only thing that will one of Detroit’s most noted 20th century by how quickly everything was changing” enable the city to be fiscally responsible architects, , and dates back in the city when he made a visit in 2014. and experience significant growth is to to 1926. It is visible for miles because of He recognised a “passion for Detroit and develop a positive climate that encourages an ornate, copper roof, Corinthian a work ethic” that was calling him back. innovation at all levels.” He expressed a columns, carved figures and other George says his colleagues at Bedrock belief that Detroit and Detroiters would intricate details. By transforming the site Detroit “get calls all the time from folks 06 “bring their best game” to show the rest into a mixed-use development, it is hoped who want to open and (we) talk to a

PAGE 172 PAGE 173 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

tonne of people” but, he stresses, the 06 PAGE 172 THE ANNUAL FORD company has been “extremely deliberate” ARTS, BEATS & EATS when it comes to choosing the right retail EVENT IS AN ART SHOWCASE AS WELL mix for downtown. “We never leave this AS A CHANCE FOR ‘til last,” he explains. “An entire team, LOCAL RESTAURANTS TO COME OUT TO PLAY. great visionary people, work on this 07 – 16 day-to-day, finding the perfect collection “WITH DETROIT, of places to make it special. No doubt we THERE ARE A LOT OF METRICS THAT SAY could have bank branches and things THE CITY IS MAKING like that, but they are not going to get A TURNAROUND OR COMEBACK BUT people walking up and down Woodward.” I THINK OUR STAFF Beyond fashion, however, it is the OR YOUR LOCAL UBER DRIVER ARE restaurateurs George credits with the most THE ONES WHO notable vision and “hustle” in Detroit, the ACTUALLY SEE WHAT IS HAPPENING – SEE ones who have “put in a lot of money or THAT IT’S REAL,” SAYS made an expensive gamble to create great GEORGE ROBERTS. spaces”. To him this is crucial as “no city can engage the outside world without a great food scene”. Detroit has attracted 10 13 hospitality innovators from cities such as New York and Portland in search of new opportunities. Interesting architecture could be part of the appeal, as 07 exemplified by Republic Tavern which opened in 2015. Housed within a beautiful 1899 castle-like structure that was once a gathering spot for civil war veterans, it made it into OpenTable’s top 100 hot spots in America in 2017. The retention of local stalwarts is also vital. Mario’s, a Detroit landmark since 1948, continues to serve traditional Italian cuisine within a luxurious supper club atmosphere, subtly lit by crystal chandeliers. 11 15 George says his suburban-based parents frequent all the new venues downtown but probably go to Mario’s now more than ever. Retaining those 08 established Detroit eateries, including the original ethnic restaurants reflective of the residents’ mixed heritage, is a point of pride. As George says, “You don’t want to go around encouraging faux red sauce Italian American restaurants to open.” — 1 www.detroitchamber.com/wp-content/ uploads/2017/11/2017-18-State-of-the- Region-1.pdf 2 www.livingstondaily.com/story/news/local/ community/livingston-county/2014/10/08/ chamber-chiefs-detroits-brand-health-matter- michigan/16896931/ 3 www.livingstondaily.com/story/news/local/ community/livingston-county/2014/10/08/ chamber-chiefs-detroits-brand-health-matter- michigan/16896931/ LINKS: 4 www.detroitchamber.com/detroit-regional- Anthem of Us, A Short Film About Detroit. Presented 09 12 14 16 chambers-state-of-the-region-report-marked- by Bedrock - youtube.com/watch?v=d1UDoUQ-Ius by-growth/

PAGE 174 PAGE 175 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

PAGE 176 PAGE 177 01 DAN’S ARTISTIC VENTURES

As well as being one of most influential forces in Detroit’s development sector, Dan Gilbert is also one of the city’s biggest public art patrons, commissioning site-specific artworks for many of his projects. One remarkable example is The Z, a 10-storey parking garage in Detroit blending 1,300 parking spots with the work of 27 mural artists from across the globe. Named for the way it zigzags from the corner of Broadway Street and East Grand River Avenue to the corner of Library Street and Gratiot Avenue downtown, The Z is a collaboration between Bedrock Detroit and Library Street Collective, a group focusing on boundary-pushing emerging and established artists. Along with the adjacent BELT Alley, the 40-metre wide murals inside the garage, a number of which reference Detroit’s history, industry and culture, mean The Z is now a Detroit destination.

02

01 06 THE Z, DESIGNED BY ARTWORKS IN THE NEUMANN/SMITH BELT HUG THE ARCHITECTURE, SPANS ENTRANCES A PUBLIC ALLEY AND TO SEVERAL ALLOWS USERS TO ENTER ESTABLISHMENTS AND EXIT ONTO TWO INCLUDING MAJOR ARTERIES. ROCKERFELLERS BAR AND GRILL. 02 SHEPARD FAIREY’S 07 ‘SMOKE ‘EM WHILE ‘CRIME FIGHTER’ BY YOU GOT ‘EM’. AMERICAN STREET ARTIST TRISTAN EATON. 03 THE Z IS ULTIMATELY 08 AN ART GALLERY YOU THE Z IS THE FIRST CAN DRIVE INTO. BUILDING THAT DAN GILBERT’S 04 BRITISH ARTIST HUSH FIRM BUILT FROM PRODUCED THIS GEISHA THE GROUND UP. FOR THE BELT. (ARTIST: FAILE.) 05 WORK BY JORDAN NICKEL 03 04 (POSE). 05 06 07 08 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

ABOUT DAN GILBERT

“There is no doubt that if we work together and open ourselves up to the creative ideas and exciting opportunities all around us, Detroit will inspire people from within and beyond its borders to transform our city into one of the biggest success stories of the 21st century.”

Dan Gilbert is founder and chairman Rock Ventures and its more than Bedrock Detroit, a full-service real accounting for more than 11.5 million of Quicken Loans Inc., America’s largest 100 affiliated companies across the estate firm specialising in acquiring, square metres in the city’s urban core. mortgage lender. He is also founder country employ more than 30,000 leasing, financing, and managing Thousands of jobs have been created, and chairman of Rock Ventures LLC, team members. Dan began moving his commercial and residential space. and today more than 17,000 Rock the umbrella entity for his portfolio of companies to Detroit’s central business Since then, Bedrock and its affiliates Ventures team members work in business and real estate investments, district in 2010 in an effort to help lead have invested more than US$5.6 billion downtown Detroit. and chairman of the 2016 NBA the transformation of a great American in acquiring and developing more Champion Cavaliers. city. In January 2010, Dan co-founded than 100 commercial properties

PAGE 178 PAGE 179 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

In conversation with Chief marketing officer of Shinola, Bridget Russo, and Andrew Hoyne

Specialising in watches, bicycles, leather and an increasing selection of complementary luxury products, Shinola is an American design brand founded by Tom Kartsotis, of Fossil Group fame. Founded in 2011, the company transformed 2,780 square metres of raw space into a state-of-the-art watch factory inside the College for Creative Studies in Detroit’s historic Argonaut building at 485 West Milwaukee Ave. Since then, Shinola has created approximately 650 jobs, close to half in the manufacturing of its high-quality, hand- assembled goods. While Shinola does not release detailed financial results, it has 28 stores and watch production has grown by 325 per cent since its founding. The brand now chalks up around US$100 million in annual sales; a woman’s handbag could set you back US$695, a gentleman’s watch BRIDGET RUSSO ANDREW HOYNE CMO SHINOLA HOYNE a lazy US$550 and above.

PAGE 180 PAGE 181 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

Andrew Hoyne (AH): What impact AH: It is interesting to see the with Alexander Wang experience has the Shinola brand had on influx of new restaurants and wanted to move to Detroit. the city so far and how do you bars in the city. And retail is Then there’s Chris who see that evolving? finally starting to come alive was living in Amsterdam while for the first time in decades, working for Converse. His wife’s Bridget Russo (BR): We definitely with people like fashion icon family is originally from here so don’t assume that Shinola are the ones John Varvatos moving in. there was a connection but, yes, driving the change in Detroit, but Detroit has been good to us. we are certainly part of a group of BR: We were excited when we heard people, from artists and filmmakers, to he was coming. There was certainly AH: Sometimes just one business businessmen like Dan Gilbert, who are a time when Woodward Avenue was or venture can have an incredible all working in our little corner. Some short on fashion stores. Now we’ve got halo effect on commerce, corners are bigger than others, all are Warby Parker (glasses and prescription development and tourism in a city. required to make it work and get this eyeglasses) there as well. We do it This seems to be happening in city back on its feet. At the city’s height, ourselves of course when we go into Detroit… a number of businesses there were two million people living a new market; we see who’s in there, seem to be having this effect. here, now there’s only 700,000. We’re how they are doing, in order to make happy to be part of the change but we a business case. BR: I agree and that is such an definitely don’t feel like the ones who important part of the story. It shows lit the match so to speak. AH: Has Shinola been involved other cities in a similar situation that in social programs outside of there’s hope, there’s opportunity to AH: Who would you say were those dealing with your own do what Detroit did. Life is changing some of the key proponents staff and building? now… before you lived on the coast of the change we’re seeing? and that was it… you either went to BR: We’ve definitely helped fund New York or LA to make it. Now that is BR: I think it was just a lot of things programs together with Midtown changing and people are wanting to live happening at once. One of those Detroit Inc. (a non-profit planning and wherever. There’s a greater openness to things is the young artists coming here development organisation supporting the living in any US city as long as people because they could have more space physical maintenance and revitalisation feel like they can find a like-minded for less money and be part of a creative of the Midtown Detroit neighbourhood). community, feel part of something and community - that was becoming less That included funding a few green alleys not just a cog in a wheel. Detroit is and less of an opportunity in places like near our store as well as the dog park symbolic in many ways but you have to New York or LA where it’s much more nearby. We try to find initiatives the take the leap, as we did. Other folks are expensive to live. public can see, something specific that taking that leap too now and doubling the community can participate in or down on Detroit essentially. It’s been Then you have Dan Gilbert who’s benefit from. successful for us and, while I can’t speak investing but also people like Phil for the others, they’re still here so they Cooley, at Pony Ride, who is taking AH: I was talking to one of the must be doing alright. over old buildings and creating these designers here at Shinola who business incubator spaces. Detroit moved from Dallas to find work AH: With growth comes Denim came out of that program. here after reading about the growing pains. Are there any They’ve opened another company company and being attracted by negative aspects? called Lazlo; the guy there hires ex- the products. Is that experience convicts and teaches them how to sew very common? And are people BR: You do hear people saying, “Oh, and make them high-quality t-shirts. moving back to live in Detroit, they’re just going in and tearing things specifically to work at Shinola? down” but the reality is, these businesses It’s exciting to be part of that evolution… are not kicking anyone out. There was a diverse group of businesses who are BR: Definitely. Our marketing no one in the buildings to start with! working to create change. director, for example, went to It’s a concern that outsiders might think University of Michigan. For 10 years that these ‘brands’ are just coming in AH: I understand there’s a she had lived in New York and wasn’t and nudging out the little guy. Before relationship between Shinola going to move back just for any now there were just streets with empty and Dan Gilbert now. job. She was working at Alexander or decrepit buildings, with no lights Wang (American fashion designer on. With the new business coming in, BR: We are partners in a new hotel and the former creative director of however, more people are arriving and and Dan has now invested in Shinola Balenciaga) when she contacted me populating these neighbourhoods and 02 and sits on our board. and I was so excited that someone that’s allowing the city to grow.

PAGE 182 PAGE 183 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

AH: How do you try and hold 01 PAGE 181 “While everybody else SHINOLA, TAKING on to the good things that got DETROIT TO people returning to Detroit in sort of forgot about this THE WORLD. the first place? 02 PAGE 182 city, those who stayed SHINOLA’S FLAGSHIP STORE AT 441 WEST BR: Even though it’s affordable, the made the most of what CANFIELD IN MIDTOWN DETROIT. prices have changed. It will be interesting they had.” to see how Detroit handles that because 03 – 11 SHINOLA HAS Bridget Russo, CMO of Shinola you want to make sure the city keeps CREATED its diversity. You want to make sure it’s APPROXIMATELY 650 JOBS, CLOSE a place of opportunity for everyone, TO HALF IN THE it’s not just going to turn into Gucci MANUFACTURING OF ITS HIGH- and Chanel and Louis Vuitton down QUALITY, HAND- Woodward Avenue. Certainly, I know ASSEMBLED GOODS. that is not Dan Gilbert’s intention, but 08 03 we have to be careful. Once again it pays to remember that we’re coming into something where, for a long time, there had been nothing.

AH: Detroit is a city that is being repurposed in a way. Previously it was quite depressed and battered with negativity, now it’s reinventing itself and becoming something unique.

BR: That is definitely true and part of 10 why we’re here. Detroiters in general are very resilient. While everybody else sort of forgot about this city, those who stayed made the most of what they had; they made lemonade out of the lemons and were very resourceful and creative.

04 06 09 AH: Is there a desire to retain the old Detroit style?

BR: It was named the UNESCO Design City, which is a pretty big deal, and hopefully it won’t all get torn down. I think the city, and anyone new coming into town, is looking around at the buildings with the intention of retaining or incorporating what they can. Saying that, there are a lot of buildings in such a state of disrepair that it would cost a lot of money to bring them up to speed again. When we found this place (the College for Creative Studies within the historic Argonaut building) we just happened to be touring the College and the doors opened up on the fifth floor, revealing an empty space. Our founder, Tom Kartsotis, asked the College’s president, Rick Rogers, what 05 07 11 the situation was and discovered

PAGE 184 PAGE 185 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

12 SHINOLA NOW CHALKS UP AROUND US$100 MILLION IN ANNUAL SALES; A WOMAN’S HANDBAG COULD SET YOU BACK US$695, A “I actually think Detroit may turn GENTLEMAN’S WATCH US$550 AND ABOVE. into a place where people come to 13 THE NEXT STEP IS THE SHINOLA HOTEL, work with their hands. It’s a return WITH DESIGN FROM GACHOT STUDIOS to the idea of the craftsman, as the AND KRAEMER DESIGN GROUP, PLUS FOOD AND BEVERAGE French and Italians have cultivated.” FROM NOHO HOSPITALITY GROUP. Bridget Russo, CMO of Shinola A PARTNERSHIP BETWEEN SHINOLA AND BEDROCK, THE HOTEL WILL HAVE 129 ROOMS, EIGHT FLOORS, A RESTAURANT, AND RETAIL SPACE. 12

the school didn’t need it. Tom was like, encouraging talent to move here. If you’re from Detroit. I think that is absolutely then we’d need to work out how to “Okay, why am I going around looking a couple with a family and you want your part of our DNA. communicate to people the career at all these places that will cost millions kid to go to public school, well you might path they could follow – the whole of dollars to refurbish? What if we not want to live downtown because your AH: What other work is Shinola idea of craftsman and skilled trades came in here?” That’s how that options are not that great. A lot of people doing in partnership with the is something we have lost to a degree. conversation started. with kids tends to live in the suburbs city to progress things? because of the school situation. Detroit’s At the moment, the city has a problem AH: There’s a book in my library public-school system experienced decades BR: We’re in the process of talking to the where a contractor might be penalised at home called Decaying Detroit. of corruption, to the point where they Mayor’s office to be part of a workforce for not hiring a construction company It’s a beautiful photographic book had to send in emergency managers for development program. Our piece would from within Detroit, for instance, but the but it’s quite sad because it depicts some of the schools. But this is another involve providing apprenticeships in the reality is we don’t have enough workers all these incredible buildings that thing the Mayor’s office is working on. leather factory. There are a lot of skilled or companies to deal with the work have fallen to wrack and ruin. labour jobs required, but we don’t have required. If there are only two guys in Do you think the government will AH: So, based on your experience enough skilled people to fill them. town who know how to service elevators, ever assist financially in the rebirth of building a business in Detroit, For example, industrial sewing is one what do you do? Wait for six months of some of these assets? what are the lessons that you would of the skill sets that’s missing, so again, until they’re free? These rules are nice share with other companies? we can probably create a couple of jobs if you have a lot of choice. For now, we BR: Honestly, I feel like there are so many a year, or a couple of apprenticeship have to help create the infrastructure that other things that need to be fixed, the BR: For us I think it was easier because programs a year with that. While Shinola provides training because there is no end schools and so much infrastructure that’s we didn’t move from one city to be here. might not be able to hire everyone that of jobs to be done. just missing. I think they’re going to have We always intended to be in Detroit, even goes through the program, we would to rely on the private sector to come in though our founder is not from here. be providing them the skill that could I actually think Detroit may turn into and fix these things or take them down. I think your intention is crucial. You can’t potentially be transferred to other a place where people come to work with I don’t know what’s going to happen with be going to a city just for marketing, you companies, other cities. Perhaps if we their hands. It’s a return to the idea of the train station but that’s a very good have to go because you want to have some can create a program here, pilot it and the craftsman, as the French and Italians example. I can’t even imagine what you meaning there. Consequently, you need make it successful, it can be duplicated have cultivated. — would put in there and how much work to come through on the intention and in other cities. It’s a hot topic in the USA it would take to do it. They just put communicate that in an authentic way. currently. I’ve heard statistics saying windows in. It didn’t even have windows. If people just want to ride the wave, there’s everywhere from 2.5 to three I don’t know if that works. million jobs going unfilled because we AH: Are things like this a disincentive don’t have the skilled labourers to fill for people to move to Detroit? AH: What personality traits to them. These are jobs that provide a better Detroit and the Shinola brand share? living than working in McDonald’s LINKS: BR: Well talent is definitely a hot topic, or Walmart, which is where a lot of A 360 virtual tour of the Shinola specifically keeping Detroit talent BR: It’s the simple fact of us being here low-income families find employment. 13 factory with actor Luke Wilson - here because there is plenty of it, plus and the majority of our staff coming Once the program was in place www.youtube.com/watch?v=wraJppF0kyg

PAGE 186 PAGE 187 and its suburban communities. bridging thegapbetween Detroit and commercial strips revive, jobs. Schools mustreopen can access thenewly created needs overhauling, sopeople including publictransportation, downtown. Infrastructure, way to neighbourhoods beyond is to ensure investment makes its nextfew predicted. challenge The the city haswitnessed acomeback filed for municipalbankruptcy, PAGE 188 PAGE WAYNE STATE UNIVERSITY PROFESSOR ROBIN BOYLE In thefive years since State University, Detroit, MI. of Urban StudiesandPlanning, Wayne By Professor Robin Boyle, Department LOCAL BRAND GLOBAL, THINK 3 CHAPTER Detroit

Impressions of Detroit PAGE 189 PAGE BUSINESS IN BACK DETROIT: BRAND STORY FEATURE CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

01-04 “The ‘20-minute WHILE AREAS BEYOND THE CITY MAY neighbourhood’. This STILL BE PLAYING CATCH UP, DETROIT is defined as an active, IS TRANSFORMING TO BECOME A safe, walkable, convenient, BUSTLING URBAN CENTRE FILLED predominantly residential WITH COLOUR, ACTIVITY, INTENSITY, neighbourhood.” REAL VALUE AND, MOST IMPORTANT, OPPORTUNITY.

02 03 04

In the five years since the City of return on investment, the true measure still often vacant, there is evidence what the Mayor would say, beyond the The gulf that exits between the city improved quality of life. Despite the towards newcomers; and Zone 4: the Detroit filed for municipal bankruptcy, of change downtown is best calibrated of cleared sites, blight removal and 18.6 square kilometres of downtown and and its suburbs is accentuated by the growing elderly population in the suburbs, ever expanding ex-urbs, filled with the biggest urban collapse in US history, by the job count, by the pedestrian small-scale residential investment. Midtown, outside the few ‘20-minute’ ‘spatial mismatch’ in the regional labour many communities are planning for the upper-income ‘McMansions’, firmly the city has witnessed a comeback few activity, by the range of new hotels, bars These areas are following the concept nodes of local renewal, revitalisation is market. Bluntly, most of the jobs in greater millennials moving to their communities, auto-dependent and resistant to ABOUT predicted. The 18.6 square kilometres and restaurants, by the number of of the ‘20-minute neighbourhood’. This much harder to find. Across the other Detroit are beyond the city limits and for the family homes, the schools, and, comprehensive public transportation. ROBIN BOYLE that make up the urban core has revitalised parks and open spaces and is defined as an active, safe, walkable, 343 square kilometres, which make up many job centres, in the auto industry, in as stated, the quality of life. So far, the This is America! — changed from a place devoid of life, also by some critical investment in urban convenient, predominantly residential the rest of city, the ravages of healthcare, in logistics, in retail, are beyond suburban communities are seeing success Born and educated in Scotland where with empty streets, crumbling real infrastructure. This is contemporary neighbourhood. A place where people deindustrialisation, disinvestment, social the reach of Detroiters, twice over. These in their commercial cores but there is less he studied at the Glasgow School of estate sitting atop dark storefronts and placemaking on steroids. can get most of their day-to-day goods dislocation, and decades of white flight jobs are difficult for Detroiters to get success building density. The cultural Art and the University of Reading, UK, little pedestrian activity, to a bustling And some of this reinvestment is and services – shopping with good food, have left Detroit with a majority-minority because too often they lack the education commitment to the single-family home Robin is Professor of Urban Planning, urban centre filled with colour, activity, making its way to select neighbourhoods access to transit, parks and schools – population that is poor, badly educated and skills demanded by employers. on tree-lined streets runs deep. Despite Department of Urban Studies and intensity, real value and, most important beyond downtown. With the support all within a 20-minute walk. According and often isolated from the jobs and Furthermore, if they don’t own a car - gaps in the market, getting support and Planning, Wayne State University, of all, opportunity. of philanthropy, such as the Kresge to the Portland Plan of 2009, 20-minute opportunity in downtown and in the and 25 per cent of all households living approval for even mid-rise housing is Detroit, MI. He was first appointed as Dan Gilbert’s property acquisitions Foundation, a revamped city neighbourhoods have three basic burgeoning suburbs. One sobering the city fall into this category - the public hard. Getting the same support for rental Chair of Geography and Urban Planning through Quicken Loans and Bedrock, administration, and re-energised characteristics: a walkable environment, statistic captures this yawning transportation system to get them to jobs apartments is well-nigh impossible. in 1992 before becoming Associate Dean. and the Ilitch family’s1 sport and non-profit community development destinations that support a range of basic disconnection. Median household in the suburbs is woefully inadequate. From 30,000 feet, the greater Detroit He returned to faculty in 2014 as the entertainment investments have changed corporations working in partnership living needs and residential density. income in 2016 in the City of Detroit But if Detroiters can get there, they’ll region is evolving into four zones. Zone 1: Director, Graduate Certificate Program downtown Detroit, almost beyond with committed private developers, Density: this the very characteristic many was measured at US$26,249 per annum. find thriving communities: Royal Oak downtown and Midtown, dense, hip, in Economic Development. Robin’s recognition. What has been developed, there are signs of local, neighbourhood- of Detroit’s neighbourhoods lack. Are The same statistic in Oakland County, and Birmingham in Oakland County, vibrant, even gentrifying in parts; Zone 2: research focuses on public policies and and perhaps to be built, is unparalleled scale development. This is happening their enough households, with sufficient some 13 kilometres north of downtown Sterling Heights and Clinton Township a vast swathe of low-density urban planning for large cities, emphasising 1 Marian Ilitch and her late husband, Michael, in ‘legacy cities’ of a comparable size in places close to middle-class disposable income to sustain the shops, stands at US$69,850 per annum. And in Macomb County, Plymouth and housing, vacant lots and abandoned founded global food franchise, Little Caesars governance and economic development in the US Midwest. Rather than count neighbourhoods that have held on the local services? Are there enough if you drill deeper into the data, the gap Dearborn in Wayne County. These and property, with small beacons of emerging Pizza. The family is leading development of a in a metropolitan context. Current funded the buildings bought and restored, the to their property value and to their children to keep the school open and in household conditions is even wider other strong suburbs have vibrant local middle-class development; Zone 3: US$1 billion Detroit sports and entertainment research includes a study of alternative district and Ilitch Holdings, Inc. provides square metres of offices brought to families. While many schools remain thriving? Not yet, not by a long way. between Detroit and communities out economies; new housing development; a cluster of smaller vibrant suburban professional support to businesses founded mobility systems in metro Detroit; and market, the soaring lease rates or the closed and the commercial strips are But… and there is a “but”. Despite in the suburbs. restored, walkable, downtowns and an communities, job rich but not so friendly or purchased by Detroit entrepreneurs. adaptive reuse of commercial property.

PAGE 190 PAGE 191 CHAPTER 3 FEATURE STORY THINK GLOBAL, BRAND LOCAL BRAND DETROIT: BACK IN BUSINESS

Detroit Detroit vs. is the Everybody new black

PAGE 192 PAGE 193 Image Credits

CHAPTER 3 Think global, brand local

Meet Rock Ventures 01-02, 07, 10-15 by Bedrock Detroit 03 by Sam Beebe (Flickr) 04, 06 by Detroit Tourism 05 by Phil Squattrito (Flickr) 08, 16 by Library Street Collective 09 by Stanford Smith (Unsplash) Insert 01, 04-08 by Bedrock Detroit 02-03 by Library Street Collective In conversation with CMO of Shinola, Bridget Russo 01-03, 05, 07-08, 10-13 by Shinola 04, 06, 09 by Andrew Hoyne Impressions of Detroit, 2018 01 by Jason Vaughn Every effort has been made to locate 02 by Vito Palmisano the owners of copyright and to ensure 03 by Bedrock Detroit that the credit information supplied 04 by Bill Bowen is accurately listed. Errors and/or omissions are inadvertant and will be corrected in future printings.

AN EXTRACT FROM THE PLACE ECONOMY BY HOYNE WWW.THEPLACEECONOMY.COM

©2019 Hoyne