FEBRUARY 6 - 12, 2017

Signs point A little less to historic Gilbert in new skyscraper push for tax dispute incentives Owners, buyers battle Spotlight elsewhere on over Ford Building, Page 3 brown eld bills, Page 3

RON FOURNIER Publisher/Editor Duggan’s future may lie beyond his city In January 2014, I wrote a column for e Atlantic titled, “President Trump? Stranger ings Might Hap- pen.” While I didn’t exactly predict Donald Trump’s election, I did fore- IMMIGRATION’S see the rise of the angry, an- ti-establish- ment populism ECONOMIC he rode to the White House. So forgive this cheeky pre- IMPACT TANYA MOUTZALIAS/THE ANN ARBOR NEWS VIA AP diction: If May- Maria Martinez of Detroit holds onto an American € ag during a Michigan United news conference last week following President Donald Trump’s executive order. or Mike Dug- Duggan: Could gan wins re-election lead to Michigan re-election and higher o ce? Local biz worries Resettlement agencies continues his refugees pattern of incremental but import- Most refugees now in Michigan face uncertain future ant progress in Detroit, he could be a over order’s e ect came from the seven countries By Sherri Welch contender for the presidency. By Dustin Walsh in President Trump’s executive [email protected] Don’t laugh. e same factors that [email protected] order of Jan. 27. e region’s refugee resettlement fed Trump’s ascent could aid a Friday is the birthday of both of Omar Zadoyan’s two sons infrastructure is at risk in the wake of pudgy pragmatist from Detroit: Origination Fiscal 2016 — 6 and 3 years old. President Trump’s executive order  Voters don’t want to elevate any- It will be the second birthday for both boys in the U.S. after em- Iran 9 blocking and limiting refugee ad- body from Washington, a city gripped igrating from Iraq as refugees in 2014. Zadoyan, who works as a Iraq 1,119 mission to the U.S. by two-party extremism and gridlock. health care advocate for the Arab Community Center for Eco- Layo s are on the horizon for all  Voters favor change agents and Libya 0 nomic & Social Services in Sterling Heights and is a student at Ma- four local nonpro t resettlement outsiders over status quo candi- comb Community College, will buy birthday cake and balloons. Somalia 255 agencies, which added sta to han- dates. Educated as a civil engineer and employed as a banker in Sudan 55 dle the expected in ux of refugees  Voters are tired of politicians who his native Baghdad, Zadoyan is now a proud green-card from war-torn Iraq and Syria after How a resettlement over-promise and under-deliver. holder in the U.S. — a status he fears won’t be possible for his Syria 1,374 former President Obama raised the agency helped Odai But I’m getting ahead of myself. fellow countrymen trying to  ee war-torn Iraq following Yemen 3 number for  scal 2017 to 110,000. Alaaneri and his Duggan has to win re-election and President Donald Trump’s executive order that suspends ref- Following the executive order, Sa- convert Detroit’s nascent recovery Total from family, Page 18 ugee resettlement from seven Middle East countries. countries in 2,815 maritas, Catholic Charities of South- into something broader and bolder — Zadoyan joins local business leaders and economists who exec. order east Michigan, U.S. Committee for Refugees and Immigrants and then develop national ambitions. fear that the order says the U.S., and Southeast Michigan, are Detroit and Jewish Family Services of Washtenaw County He doesn’t seem to have them now. not open for business to all immigrants. e order is creating Total of all could see an estimated loss of three-quarters or more of the People like me obsess over his po- refugees to tension between the economy, which needs to expand, and the roughly $4 million in total federal dollars they would have litical future. Duggan is obsessed Michigan 4,258 need to ensure the security of U.S. citizens against received before the new limits were put in place. with Detroit. SEE EFFECT , PAGE 19 Source: U.S. Department of State SEE AGENCIES , PAGE 18 “ e  rst term basically was to get

© Entire contents copyright 2017 the city working. e buses are now by Crain Communications Inc. All rights reserved running on time and the police are crainsdetroit.com Vol. 33 No 6 $2 a copy. $59 a year. showing up and the lights are on,” For angel fund, the mayor said in a telephone inter- Traverse City view as he launched his campaign for re-election. “ ose things were means more very important. Now we’re going to turn our attention to building a city than tourism that’s a great city for families. I think

NEWSPAPER See Crain’s Michigan that is the number-one issue.” Business, Page 8 SEE DUGGAN , PAGE 22 2 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017

INSIDE MICHIGAN BRIEFS BANKRUPTCIES 22 CALENDAR 17 End state income tax? e proposals stir a familiar eco- tals spent $627 million on uncom- cords requests, is a new attempt to CLASSIFIED ADS 17 Look to Kansas rst nomic debate. Anna Heaton, press pensated care; in 2015, it was down to get legislation to the governor’s desk secretary for GOP Gov. Rick Snyder, $327.1 million. A separate study by after similar bills won overwhelming KEITH CRAIN 6 As Republican lawmakers in told Bridge that Snyder wants proof the UM Institute for Social Research approval in the Republican-led MARY KRAMER 7 Michigan consider abolishing the there is “adequate” revenue from showed there was an across-the- House last year but died in the OPINION 6 state’s income tax, they might want other sources to make up the di er- board decline in uncompensated GOP-controlled Senate. e biparti- to heed the example of another Mid- ence. But Michael LaFaive of the care in all 142 state hospitals. san proposal’s lead sponsors are OTHER VOICES 6 western state, a Bridge Magazine re- Midland-based free-market think J Jarrod Agen, chief of sta to Gov. state Reps. Lee Chateld, R-Lever- PEOPLE 17 port notes. tank Mackinac Center for Public Pol- Rick Snyder, is joining President ing, and Jeremy Moss, D-Southeld. RON FOURNIER 1, 6 In Kansas, GOP Gov. Sam Brown- icy called the House tax proposal “a Trump’s admin- e legislation gained momentum back in 2012 led an e ort to put a sub- good rst step” and said Michigan istration as dep- last year in the wake of Flint’s water RUMBLINGS 22 stantial income tax cut into law, the “is still taxed too much. We should uty assistant to crisis and a sex scandal that forced WEEK ON THE WEB 22 ultimate goal being a gradual elimi- be a leader in ecient government.” the president two legislators from oce. nation of the tax. e state GDP re- According to the Tax Foundation, a and communi- J Michigan’s Unemployment Insur- COMPANY INDEX: sponded by growing at less than half Washington, D.C., tax research orga- cations director ance Agency settled a lawsuit in SEE PAGE 21 the national rate through early 2016, nization, Michigan ranked 25th for Vice Presi- which it was sued for using an auto- and Brownback siphoned millions of among the 50 states in the share of dent Mike mated computer system that falsely Big Rapids and the Manistee News dollars from state highway funds to income paid in scal 2012 paid to- Pence. Agen be- accused thousands of people of Advocate; weeklies in Baldwin, Ben- balance the budget, which last No- ward all state and local taxes, with 9.4 came Snyder’s fraud, AP reported. e suit was dis- zie County and Osceola County; and vember was in a $345 million hole. percent of income paid in those taxes. Jarrod Agen chief of sta in missed by a U.S. district judge under four shopper publications. In Michi- In Michigan, the state income tax January 2016 af- an agreement between the state and gan, Hearst owns the Huron Daily is a $9 billion source of revenue, but MICH-CELLANEOUS ter serving two years as Snyder’s the plainti s. e state said the deal Tribune and Midland Daily News. backers of tax-cut proposals have J e number of unpaid bills in most communications director. Agen’s ex- codies practices put in place after it J Union membership in Michigan not said from where funds to com- Michigan hospitals plummeted since perience includes serving as deputy ceased “auto-adjudications” in 2015. declined in 2016 as part of a drop na- pensate for that loss would come, the state expanded Medicaid under press secretary and associate direc- A lawsuit seeking nancial damages tionwide, according to the U.S. De- Bridge reported. A bill sponsored by the A ordable Care Act in 2014, ac- tor of strategic communications for is ongoing. partment of Labor. e Bureau of Rep. Lee Chateld of Levering would cording to a new study by the Univer- the U.S. Department of Homeland J e Pioneer Group, a Big Rap- Labor Statistics said the number of cut the state’s 4.25 percent income sity of Michigan’s Institute for Health- Security and at the federal Environ- ids-based publisher of newspapers union members in Michigan tax to 3.9 percent in January 2018, care Policy and Innovation. e mental Protection Agency and State and operator of a digital marketing dropped from 621,000 in 2015 to then call for further rollbacks of 0.1 report showed that of the 88 hospitals Department. services business, was sold to Hearst, 606,000 last year, going from 15.2 percent yearly until the tax is elimi- reporting 2015 data in full to the state, J Michigan House members last the New York City-based publishing percent to 14.4 percent, AP reported. nated over 40 years. State Sen. Jack unpaid bills dropped by about half. week introduced a public records giant, after four generations of family e Michigan decrease was part of a Brandenburg of Macomb County, e results showed that 90 percent of proposal they say will increase trans- ownership, MiBiz and the Grand 0.4 percent drop of labor-aliated meanwhile, said he intends to intro- reporting hospitals have spent less of parency, AP reported. e package Rapids Business Journal reported. workers in the U.S. from more than duce a bill to scrap the income tax their total budget on covering the cost of bills, which would subject the gov- Terms were not disclosed. Pioneer 14.8 million in 2015 to 14.6 million in over just ve years. of unpaid care. In 2013, those hospi- ernor and lawmakers to public re- publishes the daily e Pioneer in 2016.

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Real estate Legislature Signs point to dispute over Ford Building Taking the ‘Gilbert’ out of the ‘Gilbert bills’ Detroit developer’s projects may move into background in new push at incentives

By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine LANSING — Late last year, Dan Gil- bert visited the Capitol to personally lobby lawmakers to pass new tax in- centives that he promised could help unlock billions of dollars of develop- ment in Detroit. ey didn’t pass. As supporters prepare to try again, Gilbert — and Detroit — will shade into the back- ground in the push to pass what popularly be- came known as the “Gilbert bills.” is time, the rest of the state will get the spot- light from back- KURT NAGL/CRAIN’S DETROIT BUSINESS ers of a proposal Dan Gilbert: Workers pulled down the letters spelling out “Ford Building” on both the to create a tax in- Visited Capitol last awning and the second
oor of the historic 18-story downtown Detroit centive for year to lobby skyscraper. At right, the building before the letters were removed. “transformation- lawmakers. al” brown eld projects. ey plan to focus less on Detroit projects, in part to sell outstate Delays, removal of name part of ­ ght over COSTAR GROUP legislators and their constituents on sale of one of Detroit’s ­ rst skyscrapers the opportunity the incentive would create in their own backyards, and in By Kirk Pinho and the owner of the Ford Building just the latest o -key note in a Ford Building Inc. to complete the part to insulate the campaign against [email protected] sat in a room to discuss a pending 17-month Wayne County Circuit sale. A variety of postponements and critics who characterized the bills as For more than a year, there’s been court-ordered sale Feb. 1 of the Court battle between Tom Paglia Jr., cancellations have occurred in that a way to pad billionaires’ pockets a  ght over the sale of one of De- 18-story downtown high-rise. whose family has owned the build- time frame. with public money. troit’s  rst skyscrapers. While they met, workers were ing since 1991, and Detroit-based And still, the 188,000-square-foot Gilbert’s Rock Ventures LLC was Now, the two sides are  ghting pulling down the letters spelling out Sterling Group, which has a contract building at Griswold and Congress one of the chief architects of the con- over the signs on the side of the “Ford Building” on both the awning to buy it for $12 million. streets eludes Sterling Group, Gary cept. But the campaign that backed it building. and second  oor. Twice — on June 23 and Dec. 16 Torgow's real estate company. the  rst time around included other Last week, a group of attorneys e case of the missing signs is — the court ordered Paglia and his SEE BUILDING , PAGE 17 SEE BILLS , PAGE 20

Sports MUST Olympia will consider minor league READS teams for Little Caesars Arena OF THE

By Bill Shea WEEK [email protected] e Detroit Red Wings and De- troit Pistons eventually could have Next in line company at Little Caesars Arena in An important part of the form of a minor league sports business planning is team. dealing with leader- Adding a third team remains a few ship succession that years away, but it represents an op- ensures a company’s portunity for smaller businesses to future, Page 13 spend marketing dollars inside the new arena they otherwise couldn’t a ord to pay with the major league teams. It’s a di erence of thousands versus millions. e Wings and Pistons are to be- Ford Field’s $100M upgrades gin play at the $635 million arena in ARENA FOOTBALL LEAGUE New video boards are expected to be among the additions at Ford Field for next September, but it would be at least Dan Gilbert owns the Arena Football League’s Cleveland Gladiators franchise, and season, Page 23 three or more years before the venue Olympia Entertainment has had feelers from that league and others about playing SEE TEAMS , PAGE 21 at Little Caesars Arena. 4 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017

MAKE THE MOST with custom OF YOUR EDITORIAL Reprints, Snyder seeks private donations COVERAGE IN CRAIN’S E-prints Contact Krista Bora at [email protected] and more! to boost Detroit Promise funding By Chad Livengood properties — about 44 percent of the grade point average and ACT score of [email protected] city's parcels — rose this year, ac- 21, Remington said. Gov. Rick Snyder wants business- cording to city assessment data. If Detroit's high school graduation es and philanthropic foundations to “If you look at the projections … rate goes up, the annual cost will rise boost the Detroit Promise college every year, the revenues that are with demand, Remington said. scholarship program with up to coming in on the tax side go up faster “at to me is not an unpleasant $24 million to ll gaps in a tenuous than we believe the demand will be,”- thing,” Remington said. “It would be tax-capturing mechanism that re- Duggan said. “So we feel really good the best thing that can happen.” mains two years away from generat- about those projections. So Detroit ing revenue. Promise is rock solid." ‘Success coaches’ Detroit's citywide reassessment of A Crain’s analysis of state Treasury all commercial, industrial and resi- Department data shows the Detroit Remington raises money for the dential property value is expected to Promise could collect about $300,000 Detroit Promise through the Michi- set 2017 as the baseline year for the in 2018, $670,000 in 2019, $1.16 mil- gan Education Excellence Founda- HELPING COMPANIES NAVIGATE THROUGH Detroit Promise Zone Authority to lion in 2020 and rise to $4.9 million tion, which was originally set up by begin collecting 50 percent of all rev- by 2026. Snyder's oce to direct private do- DIFFICULT BUSINESS SITUATIONS enue growth in the 6-mill State Edu- ose revenues depend on prop- nations to the Education Achieve- cation Tax in 2019. erty values and state education tax ment Authority to run 15 chronically • Turnaround, Workouts & Restructuring e Michigan Education Excel- collections rising annually, accord- failing schools in Detroit. • Performance Improvement lence Foundation has raised $6 mil- ing to one of the architects of Michi- e Detroit Regional Chamber ad- • Litigation Support lion for the Detroit Promise scholar- gan’s promise zones, which were de- ministers the Detroit Promise schol- • Fraud Investigations & Forensic Accounting • Executive Coaching ship program and has a goal of signed to create a taxpayer-subsidized arships on behalf of the Michigan generating $30 million in donations, version of the popular Kalamazoo Education Excellence Foundation. according to the foundation’s presi- Promise college tuition guarantee. In addition to awarding scholar- dent, Peter Remington. “e earliest Detroit would quali- ships, the Detroit Promise program is e Detroit Promise college fy for tax capture ... would be the fall paying for ve full-time counselors at calderonelight.com scholarship covers the dierence of 2018,” said Chuck Wilbur, senior the ve community colleges where between a student’s federal nan- policy consultant at Public Policy Detroit students are attending: cial aid Pell Grant and the cost of Associates in Lansing. “But then Wayne County Community College tuition. ere are about 760 Detroit they have to actually have growth to District, Oakland Community Col- high school graduates attending capture (taxes), and we don’t know lege, Macomb Community College, community colleges in Wayne with certainty yet that that’s going to Henry Ford College and Schoolcraft County this year and 290 enrolled in happen." College. four-year universities under the Wilbur helped craft the original e counselors, who are dubbed program. Promise Zone legislation as former “success coaches,” meet with the De- Snyder prodded the business Gov. Jennifer Granholm’s senior ad- troit Promise scholarship recipients leaders and philanthropists in his viser in 2006 and has continued to twice monthly to keep an eye on their Jan. 17 State of the State address to consult organizations in the imple- academic progress and oer career help sustain the program. mentation of the community-based advice, said Greg Handel, vice presi- “I am calling on our philanthropic college scholarship programs. dent of education and talent pro- and business communities to join in e law spurred the creation of ten grams at the Detroit Regional Cham- and help (Mayor Mike Duggan) and I promise zones around the state in ber. support the Promise and continue Baldwin, Battle Creek, Benton Har- Handel said the career coaches the path to give awesome opportuni- bor, Detroit, Hazel Park, Lansing, take a “proactive approach” to help- ties to these great, young people Muskegon County, Newaygo Coun- ing the students stay focused on their from Detroit,” Snyder said in the ty, Pontiac and Saginaw. associate degree or technical certi - speech. For Detroit, the annual cost of the cate. e fundraising drive for the De- program is hard to pinpoint. “We’re trying to make sure stu- troit Promise is designed to ensure It depends on how many students dents don’t just go into community the scholarships are sustainable as enroll in the community college pro- college, but they’re actually complet- Detroit's property values rebound, gram — which has no academic cri- ing,” Handel said. Remington said. teria — and the university scholar- Chad Livengood: (313) 446-1654 “We’ve got to be able to raise it be- ship, which requires a minimum 3.0 Twitter: @ChadLivengood cause even when the tax recapture start there’s still going to be philan- thropy needed,” said Remington, CEO of e Remington Group. e Detroit-based Skillman Foun- dation has contributed $150,000 to EXPERIENCE the scholarship and college access program, but has held back contrib- THE BENEFITS uting more because of uncertainty Progress. over long-term taxpayer support, OF PRIVATE foundation CEO Tonya Allen said. At the heart of West Michigan’s economic development, “It feels like it’s a really, really big AVIATION. Lakers are a vital force. Throughout the region and state, Lakers live, work, and lead, helping create solutions that burden on our community to raise those revenues and we don’t really Whether you are traveling for business or leisure, private aviation drive growth forward. 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CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 5 Blue Care Network, HAP delay anesthesia preauthorization policies aer objections By Jay Greene Blue Care said in policy state- Care’s analysis of an April 2016 study [email protected] ments to gastroenterologists and an- in the journal Gastroenterology, “ e Blue Care Network and Health Al- esthesiologists that internal nancial risks associated with anesthesia liance Plan of Michigan backed away and utilization audits showed rising during colonoscopy,” shows that last month from controversial pro- costs and wide variations in the use there is a 13 percent increased risk of posals to require providers to receive of full, or general, anesthesia for rou- complications for patients when us- preauthorization for full anesthesia tine colonoscopies and other endo- ing anesthesia services. services before patients receive colo- scopic procedures. But Eric Perry, D.O., director of an- noscopies and similar procedures e proposed Blue Care policy esthesia services at Michigan Endos- after at least three Michigan physi- would have discontinued payments copy Center in Farmington Hills, said cian organizations objected. for many routine endoscopic proce- the Gatroenterology article fails to e policies could have made it dures for non-Medicare patients apply to Michigan anesthesiologists more dicult to get insurance pay- without prior authorization and sub- in several ways. For example, more ment for anesthesia for a common mission of clinical information. than half of the patients received pro- procedure many nd unpleasant. Last fall at a meeting with Blue cedures by non-gastroenterologists; Your trust. Your triumphs. e new preauthorization policy Care ocials, representatives with the comparison was from no seda- — stated as necessary by Blue Care the state anesthesiology society, the tion to sedation; and the type of seda- We care about both. because of rising anesthesia costs, Michigan State Medical Society and tion is not identied (propofol, Fen- overuse of anesthesia and questions the Coalition of Concerned Physi- tanyl or Versed). about its outcomes — had been cians & Patient Advocates objected Stojic said that Blue Care is open We’re here to help. If you are in scheduled to go into eect Jan. 8, ac- to Blue Care’s proposed policy and to reviewing other studies that doc- cording to a Nov. 18 memo to anes- charged that it is motivated by cost tors want to present to it. “BCN cited VHDUFKRIñH[LEOHðQDQFLQJVROXWLRQV thesia providers. savings and not by patient quality or the study it saw,” she said. IRU\RXUEXVLQHVVWDONWRXVDERXW HAP had planned to begin a simi- safety. On the decision to postpone the lar prior authorization requirement e associations reacted to several policy, Stojic cited the physician op- DVVHWEDVHGOHQGLQJ on March 1, but has indenitely de- policy statements by Blue Care, in- position and that Blue Care wants to layed it after discussions with state cluding the following: give doctors more time to get ready specialty societies and the Centers “Monitored anesthesia during GI for it. She also said there is potential for Medicare and Medicaid Services, endoscopy is clinically indicated far later this year that new professional HAP said. less often than it is employed. Its val- quality guidelines will be released Naim Munir, M.D., HAP’s chief ue in the majority of cases is dicult from the American Society for Gas- &RQWDFW0LNH6HPDQFRWRGD\ medical ocer, said HAP reviewed to establish. It may actually lead to a trointestinal Endoscopy that will (248) 658-1100 the evidence for dierent types of se- higher incidence of serious events,” help Blue Care make a nal deci- dation for routine endoscopies and according to a November Blue Care sion. KLWDFKLEXVLQHVVÀQDQFHFRP colonoscopies and felt further study memo. Later this year, Stojic said, Blue was required. Anesthesiologists Harry Parr, D.O., Care will re-evaluate its policy after “All patients who need a colonos- and Dave Krhovsky, M.D., president new guidelines are released and copy require some level of sedation, of the state medical society, strongly claims data are reviewed. and the drug options used for seda- disagreed with Jay Greene: (313) 446-0325 tion have dierent costs and risks,” Blue Care’s con- Twitter: @jaybgreene Munir said in a statement. tention that an- Sedation during these procedures esthesia proce- typically is through the use of propo- dures for fol, a strong drug that must be ad- endoscopies ministered and monitored by an an- could lead to esthesiologist or nurse anesthetist. higher numbers Use of full anesthesia for endosco- of adverse pies — the target of the Blue Care and events. ey also Harry Parr: SEASON TICKETS HAP policies — varies widely among charged that the regions and by patient populations, a Disagreed with sole reason Blue Journal of the American Medical As- Blue Care. Care wanted to sociation study said. implement the e study said full anesthesia use policy was to reduce the use of full ON SALE NOW ranges from 59 percent in the North- anesthesia. eastern U.S. to 13 percent in the “ e research doesn't support that Western U.S., with the Midwest aver- statement, and it is a rationalization aging in the middle. Moreover, full on their part for a decision based anesthesia for endoscopies has in- strictly on nancial reasons,” said creased to an average of more than Parr, chairman of the ASA’s practice 30 percent of cases in 2009 from 14 committee. BENEFITS INCLUDE: percent in 2003. Two-thirds of the Helen Stojic, director of corporate AS LOW AS cases are delivered to low-risk pa- aairs for Detroit-based Blue Cross • Season Ticket tients and much more often when Blue Shield of Michigan, denied that Discount the patient is insured or on Medicare, Blue Care’s original policy decision the study said. was based solely on nancial rea- • Opening Day Scott Plaehn, D.O., an East Lan- sons. 13 sing-based gastroenterologist with Stojic said Blue Care audits found Tickets* the Michigan Gastroenterology Insti- some anesthesiology groups have tute, said he uses full anesthesia for much lower rates of using anesthesia Per Game • Postseason nearly all his patients requiring en- than other groups. Ticket Priority doscopies with little risk. “It’s about reducing costs, but we “Our experience has been that pa- want to balance it,” Stojic said. “If tients experience a lot smoother pro- something can be done safely and ef- cedure when we use the MAC anes- fectively, that is where we want to be.” thesia with propofol,” Plaehn said. Stojic added: “BCN wants to pro- Early in his career, Plaehn said, he vide the highest-value care to its used other anesthesia (Demerol, members — that entails balancing Fentanyl and Versed), but patients provider preference with keeping “tended to have slower recovery time health care aordable for our cus- and the overall procedure was less tomers.” than ideal.” On quality, Stojic also cited Blue *Restrictions apply. 6 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 Senate transportation package won’t get Michigan’s roads xed OPINION appreciate the optimism of Keith Crain about what he described as I“a promising solution” to our state’s “ongoing nightmare” of crumbling Rise up, Detroit roads and bridges (“I am waiting for Why President Trump’s Kelly was getting briefed on the or- the orange barrels,” Jan. 23). Unfor- executive order on der when he looked up at a television tunately, what Mr. Crain described immigration is an assault on and saw Trump signing it. e White as “a promising solution,” a trans- OTHER VOICES House employed legislative aides to portation package passed by the Tim Greimel Michigan’s economy, and why write the order without the knowl- Legislature a little over a year ago, Greimel is a Democratic state you should ght back edge of the aides’ bosses, powerful will not x the roads. lawmakers. As a result of the legislation, Mich- representative from Auburn Hills. ou’re a Crain’s reader, which RON FOURNIER Such aronts, such carelessness, igan residents started paying higher means you’re a leader of Detroit’s were justi ed by a White House gas taxes and registration fees on Nobody likes Ycivic life. You’re important. People Editor and Publisher spokesman claiming that Trump Jan. 1. However, the legislation did care about your opinions. Politicians needed to keep the order secret to pre- not include needed reforms like low- paying higher covet your money. And you spend Listen to Ron Fournier at 6:10 a.m. vent a ood of refugees. So Trump er and more uniform weight limits taxes and fees, healthy parts of every day deciding Monday on the Paul W. Smith show doesn’t trust his Cabinet to keep a se- for heavy trucks, stricter enforce- and the only thing how to leverage your power. on WJR AM 760. cret? Did he forget that he announced ment of weight limits, improved de- I have a thought. to the world, months ago, that a ban sign and construction speci cations worse is paying Rise up, metro Detroit. Lean in. lims, Trump’s order commits the Unit- was coming? to ensure roads are more durable higher taxes and Speak out. Whether or not you sup- ed States to “prioritize refugee claims OK, how does this aect your bot- and last longer, and a more equita- ported President Trump, his decision made by individuals on the basis of tom line? As my colleague Dustin ble, transparent and accountable fees but still not to “temporarily” ban people from sev- religious-based persecution. ... ” Walsh reported, immigrants add value distribution formula for transporta- xing the en predominantly Muslim nations Trump himself says this favoritism ap- to the economy and pad a declining tion dollars collected by the state from entering the United States is a plies to Christians, not Muslims. workforce. In Cleveland and Minne- and transferred to counties and local problem. mistake you can help x. If that is not a religious test, an apolis, for instance, the economic im- communities. just how ineective the 2015 trans- A Muslim ban in all but name, anathema to America’s founding prin- pact of refugees between 2000 and Without those reforms, the addi- portation package is. e report con- Trump’s executive order is hard to de- ciples, it’s a freighted quiz. e wrong 2012 was 10 times greater than the cost tional revenue generated by the rmed that, even with the new taxes fend on moral grounds, and its imple- answer (“I’m Muslim”) shut this na- of refugee services. higher taxes and fees on Michigan- and fees, Michigan’s roads and mentation raises alarming questions tion’s doors. In Michigan, more people are leav- ders will not be nearly enough to im- bridges will “continue to deterio- about the competency of this new ad- What a horrible signal to send to ing the workforce than entering it, and prove the condition of our roads and r a t e .” ministration. But more to the point — Michigan’s immigrant community, most businesses — including your bridges. In fact, the Michigan De- Moreover, the report estimated and closer to your bottom lines — many of whom call Iraq and Syria their business, I bet — face a talent de cit. partment of Transportation’s Roads that a whopping $2.2 billion more Trump’s refugee policy is an assault on native lands. People like Khaldoon Along comes an order to ban refugees Innovation Task Force Report of June per year will be needed to ensure Michigan’s economy. Alaswad, a cardiologist at Henry Ford from certain countries, followed per- 2016 (as revised in September 2016) that 95 percent of interstates and Signed by Trump on, of all days, Hospital whose 77-year-old Syrian haps by restrictions on elite visas for indicated that, even with the addi- principal arteries, 85 percent of Holocaust Remembrance Day, the or- mother had her March 14 visa inter- people with advanced degrees and tional revenue, state trunk lines (in- other state highways, and 85 per- der inde nitely suspends the resettle- view canceled in an email message special skills. Yes, a draft order circu- terstates and M-designated state cent of county primary roads and ment of Syrian refugees and blocks last week. lated by the White House would curb highways) will be in much worse major city roads are in good or fair entry into the U.S. for at least 90 days Alaswad, a erce critic of the Syrian all visas except those going to diplo- shape in 2025 than they are today. condition. by citizens of Iran, Iraq, Libya, Soma- regime who likely would be arrested if mats. Speci cally, it found that only 46 Nobody likes paying higher taxes lia, Sudan, Syria and Yemen. he tried to visit his mother, wants her A nation hostile to immigrants also percent of state trunk lines will be in and fees, and the only thing worse is While it invokes the attacks on Sept. to come to the United States. She suf- robs itself of future successes. Detroit good or fair condition in 2025 com- paying higher taxes and fees but still 11, 2001, as justi cation, Trump’s or- fers from heart and kidney failure. is full of people who have built enor- pared with 84 percent in 2015. e not xing the problem. at’s why der exempts the 9/11 hijackers’ own “Now I cannot get my Mom,” he mous businesses, employing thou- report further indicates that less many of us in the Legislature voted countries and also, conveniently, told my colleague Jay Greene. “But it is sands, who crossed borders and than 30 percent of state trunk lines against the “plan” that only pretends doesn’t include several countries just not about me.” oceans to get here in the rst place. will be in good or fair condition in to x our roads and bridges while where the Trump family does busi- e order initially created confu- Replacing a welcome mat with a “keep 2040. hiking taxes on residents who will ness. sion and chaos at airports around the out” sign keeps out exactly the kinds of Not surprisingly, MDOT Director only become more cynical about For months during his campaign, world. Passengers with green cards risk-takers who can dream big and Kirk Steudle was quoted by Gongwer government when those taxes do not Trump promised a Muslim ban — “a and people with visas were barred make those dreams real. News Service on Jan. 27 as stating x the problem. complete shutdown of Muslims enter- from ights without warning. No won- How can this be good for your busi- that the 2015 package of bills Maybe the federal government ing the United States” — before recast- der. At least three national security ness, your city, your country? You’re “doesn’t by any means solve the will decide to spend enough addi- ing his policy as “extreme vetting.” Still, leaders — Defense Secretary Jim Mat- an important person with power to problem.” tional money on roads to paper over one quote from 11 months ago stands tis, Homeland Security Secretary John leverage. Call your congresspeople. Two months ago, Gov. Rick Sny- the shortsighted approach that the as the dark core of his intent: “Islam Kelly, and Secretary of State-designee Deploy your lobbyists. Write an op-ed. der’s 21st Century Infrastructure legislature took in 2015. If not, Mich- hates us.” Rex Tillerson — told associates they Unite with like-minded civic leaders, Commission issued a report that igan residents are in for a truly rough While it doesn’t explicitly ban Mus- were kept in the dark. and force Trump to x this. provides an alarming assessment of road ahead. Nobody wants to volunteer, maybe? I am always a bit disappointed that, in business, most recently as CEO of er any Michigan business executives six-year term. With all her objections unlike in the time of the Founding Fa- ExxonMobil. will be interested in running. to our Cabinet, my guess is that she thers, there are not a lot of business- I have always thought government We will elect a new governor next will have a tough time at best winning people interested in serving in gov- should be run like a business, and al- year, and already we have quite a few re-election. I am sure there will be ernment. Whether local, state or though I’ll get a lot of argument, I look candidates coming out of the wood- plenty of candidates from both sides federal government, it seems like forward to seeing a government with a work. Following our present governor crying for her seat. most business executives simply say board of directors and delegation of is going to be a tough job, in spite of I always felt no one, particularly no. authority. what some folks might say. business executives, wanted to run for at is why you have to be pleas- It might make more executives in- If my count is right, we’ve got oce. I think that is changing. I bet we antly surprised to look at President KEITH CRAIN terested in taking time out to serve in somewhere around a dozen candi- will have some good choices for gov- Donald Trump’s Cabinet and see Editor-in-chief government. If I recall my history, that dates from both parties who have ernor in addition to who's already an- some business folks who have stood is how our Founding Fathers planned thrown their hats into the ring or seem nounced. Democracy works best up and are willing to work in govern- of Commerce, speak at several semi- for our government to work. like sure bets to run. Virtually all are when we have lots of choices. Next ment for a few years. nars we have held, and he has always We have a couple of big positions career politicians. year, we’ll have plenty. I have had the pleasure of having done a great job. Our new Secretary of that will be up for election next year, Meanwhile, U.S. Sen. Debbie It will be an interesting election cy- Wilbur Ross, the incoming Secretary State, Rex Tillerson, has a long history and it will be interesting to see wheth- Stabenow will be running for a third cle. But then, they always are. CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 7 Business must heed warnings of cybersecurity talk TEL AVIV — is week, I am best: Cyberattacks are the new form hen has recruited 51 members — changing all my passwords. Michigan should of warfare. leaders in digital across the state. at's what spending a few days identify and Some takeaways from our trip: e goal is to have an on-call army of immersed in cybersecurity talk and invest in best-in- J Michigan should identify and in- 200 who can help respond to cyber- visits with cutting-edge technologies vest in best-in-class academic pro- attacks. will do to you. class academic grams in cybersecurity. e jobs But the biggest takeaway of all? Is- e stories of malware, hacks, programs in WILL be there. raeli startup companies, led by mili- ransomware and other calamities of J Jarrod Agen, who jumped ship last tary veterans of elite tech units, may our digital world gave me new ap- MARY KRAMER cybersecurity. week from serving as chief of sta for give the edge to Detroit automakers preciation for the IT teams who fo- Group Publisher Gov. Rick Snyder to a spot in the when it comes to keeping connected cus on protecting key business sys- Now imagine if that mischief were Trump White House, should tout vehicles safe from hacks. At least 400 tems. (Yes, Crain's IT team, I mean focused on connected cars? Or the Snyder for a key advisory role in startups are focused on auto tech- you!) Mary Kramer is group publisher of energy grids? And the intent was to shaping U.S. responses to cyberat- nology. Security was clearly top of mind Crain’s Detroit Business. Read her take an economy down? tacks. I guess there is a reason that Gen- for the CIOs who joined a Michigan blogs about her Israel trip at At a major cyber tech conference A couple of years ago, Snyder eral Motors, Ford and other Ameri- cyber delegation to Israel organized crainsdetroit.com/marykramer in Tel Aviv we attended, Prime Min- came up with an innovative idea: the can companies have opened R&D by Mark Davido, Michigan manag- ister Benjamin Netanyahu said it Michigan Civilian Cyber Corps. Be- centers in Israel. ing partner for Deloitte; Dave Behen, CIO for the state of Michigan; and Brian Rich, CIO of Consumers Ener- gy. (You can nd my blogs about the trip at crainsdetroit.com.) Our group ran in tandem with Gov. Rick Snyder and his economic team and a group organized by the Michigan Israel Business Bridge. We all remember the big consum- er-facing hacks — Target and Home Depot — as well as calculated politi- cal paybacks, like the Sony hack. (And of course, the controversial Russian engagement before our presidential election.) But I learned about new threats, too. Last month, a hacker demanded a ransom, paid in bitcoins, from an Austrian resort hotel where the elec- tronic key system had been compro- mised. Hotel guests were locked out of their very expensive rooms. An email with payment instruc- tions warned management that the ransom would double if unpaid by the end of the day. e hotel paid the equivalent of $1,800.

LETTER TO THE EDITOR Barbara McQuade “Michigan State University’s Executive MBA taught me to be a better business respected by all leader. Learning to trust myself was Editor: the biggest return on investment, and Mr. Crain, you are so correct now I help daycare owners see their about Barb McQuade (“Keith Crain: own potential as business owners.” A beginning and an end,” Page 6, Jan. 30). I have been a judge in the U.S. With classes held every other weekendfor District Court for 29 years, and be- 20 months, an Executive MBM A from the fore that, a state district judge and an Broad College of Businesss gives you the assistant prosecutor in Wayne Coun- ty, and I have seen many U.S. attor- confidence to make buusinesss happen. neys, and Barbara is the best by far. She is totally dedicated to the job without regard to politics, but with a KELLLIE BOYD, MBAB ’15 mission of improving life for the citi- MICHIGANN DIRRECECTOR FIFIRRST CHILDREN’SSFFININANANCENCE zens. She is respected by both sides of the bar and our bench. Our com- munity and the administration of justice will suer if she were to leave. Judge Bernard A. Friedman U.S. District Court, Eastern District of Michigan LLearn more at: BRROAADD.MSU.EDU/KELLL IE

Send your letters: Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email: [email protected] 8 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS Looking beyond tourism Northern Michigan angel fund focuses on Traverse City’s economic base

By Tom Henderson [email protected] e founders of the Northern Michigan Angels LLC hope to make a pro t from their investments in early-stage companies, but they have another goal, too — to create high-paying jobs and diversify an economy that is reliant on seasonal tourists. “ ere is a true desire to see this area prosper. ere’s a concern we’ve become too much of a T-shirt and tourist location,” said Deanna Cannon, one of four founders of the group in 2012 and its executive direc- tor, and the owner of Cannon & Co. CPAs PLC in downtown Traverse City. “At some point, every growing enterprise needs equity, not debt, and we’re here to help them,” said Lee Gardner, another co-founder. “We’re looking to build scalable enterprises that can provide year-round jobs. We have plenty of motels and restau- rants, but we need to broaden the economic base here.” Cannon said she got the idea to form an angel investing group in northern Michigan in 2010. She had been running the Traverse City o ce of Los Angeles-based Corporate Finance Associates, an investment banking  r m . Inside: “I kept running into companies that didn’t want to sell, they wanted to grow and  NewTree Fruit, they needed capital, but they were too small this page to get commercial funding,” she said. So she  Silikids, Page 9 closed the local CFA o ce and began re-  Trade with China, cruiting other local high-net-worth individ- Page 11 Deanna Cannon and Lee uals to join her in providing early-stage Gardner are two of the founders funding to small businesses. TOM HENDERSON/CRAIN’S DETROIT BUSINESS of Northern Michigan Angels. SEE ANGEL , PAGE 10

Cherries, $250,000 grant, labor help juice startup plant roots By Tom Henderson freshness and quality, Edit juice is ists at last November’s Accelerate [email protected] harvested from the rolling orchards Michigan Innovation event in De- Luc Hobson, one of the co-found- of Michigan, with its rich soil and di- troit. e company didn’t win any of ers of the NewTree Fruit Co. LP and verse varieties. Michigan grows the the $1 million at stake in the compe- its chief scientist, lives in Montreal. most tart cherries and blueberries in tition but got to showcase its tech- e other founder, CEO Chad An- the country, and is the third-largest nology and juices to would-be inves- derson, lives in De Pere, Wis., a sub- grower of apples and grapes. Edit tors, and Anderson said he has had urb of Green Bay. juice is made in beautiful Traverse ongoing serious talks with one of the So why is their startup company City, Mich., recognized as the Cherry venture-capital  rms there about located in Traverse City? One, there Capital of the World.” joining the current funding round. are tons of tart cherries practically ere will soon be a fourth reason NewTree uses a patented process just out the door. Two, a grant of NewTree is in Traverse City. Deanna to eliminate nearly all the fructose, $250,000 in 2014 from the Michigan Cannon, a founding member of the sucrose and glucose from fruit juic- Department of Agriculture and the Northern Michigan Angels LLC, said es, reducing, for example, the Michigan Economic Development her group is in the  nal stages of ne- amount of sugar in a 10-ounce of Corp. to help reimburse the costs of gotiating a term sheet for an equity grape juice from 48 grams to one. It marketing and getting their produc- investment in the company. replaces the sweetness lost in the tion facility up and running. ree, Anderson said he has raised process with stevia, a natural sweet- “this is an area where it’s easy to at- $500,000 from friends and family ener and sugar substitute extracted tract labor,” said Anderson. and that this angel investment will from the leaves of the plant species As NewTree says in its website be part of a $500,000  rst close of stevia rebaudiana. about its line of fruit juices, which what he hopes will eventually be a e active compounds of stevia NEWTREE FRUIT CO. are branded in retailers as Edit Fruit funding round of $3 million. are called steviol glycosides, which NewTree Fruit Co. co-founder and chief scientist Luc Hubson (le ) and board Juice: “To meet our high standards of NewTree was one of 36 semi nal- SEE JUICE , PAGE 9 member Greg Palalexis confer at the Traverse City factory. CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 9 SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS Silikids nds niche with silicone products for children By Tom Henderson product line. [email protected] “Stacey is determined, persistent, Silikids Inc. is a Traverse City realistic and carries a very positive company that moved there from Los attitude regardless of startup chal- Angeles in 2012 because its lenges,” he said. co-founder and CEO, Stacey Feeley, With that funding, Feeley was able wanted a better quality of life for her to ramp up production and market- kids. Her husband’s parents had a ing. place in Glen Arbor and she was She said she will begin raising a smitten with the area’s lakes, beach- funding round of at least $1 million es and forests. late this year to further boost pro- Now, she hopes to move its man- duction and marketing. ufacturing here, too, from China. Originally, Feeley sold its bright- Silikids makes sippy cups, eating ly colored items in small boutique utensils, straws and other food-relat- stores. Today, Silikids products are ed items for kids out of silicone, a sold at Meijer and Babies “R” Us lo- benign product believed to have cations throughout the U.S. and at none of the health worries related to retailers in the Netherlands, Malay- various plastics. sia, Australia, Sweden, Chile, Tai- Feeley said the company is on a wan, Saudi Arabia and South Afri- growth trajectory that she hopes ca. over the next few years will eventual- Prices range from $8.95 for a sippy ly allow her to use U.S. manufactur- cup to $9.95 for a spoon that doubles ers in northern Michigan. She said as a pacier to $6.95 for a set of six the company will double revenue reusable straws to $11.95 for a bib. this year to about $1 million and Products even include a capabili- with an expanded product line being ty that seems miraculous to anyone introduced in March should more who has ever put something made of than double revenue next year. metal in a microwave. e expanded line will include TOM HENDERSON/CRAIN’S DETROIT BUSINESS Silikids’ cups have stainless steel items for adults, such as coee mugs, Silikids Inc. co-founder and CEO Stacey Feeley moved her company to Traverse City from Los Angeles in 2012. rings at the top to give them some ri- tableware and storage bowls. gidity. e rings are coated in sili- “If you’re not producing in the her true calling was as an entrepre- banned bisphenol A, a polymer Schwab remained in California, cone. Silikids has been awarded 10 millions of units, manufacturers neur. known as BPA and commonly used where she is Silikids’ chief creative patents; one is for the chemistry be- here say, ‘Go to China.’ ey won’t In 2007, she and a partner, Giuli- in cups, coee mugs and water bot- ocer. hind the silicone-coated ring that even quote the product,” she said. ana Schwab, founded Silikids. tles. Soon after the move, Feeley met allows the metal to be microwaved “But that’s what we want to do, get She’d recently given birth to the “ at put us on the map,” said with the Northern Michigan Angels, without any ill eect. big enough to bring manufacturing rst of her three daughters and hat- Feeley. which had just been formed. Silikids has four employees, but here. We don’t need a lot of compli- ed using the readily available plastic Bans in other countries soon fol- In 2013, Feeley raised a funding its benet to the Traverse City area cated equipment, we just need a implements made for kids. “ ey lowed. In 2013, the U.S. banned BPA round of $400,000, led by Start Gar- goes beyond those modest employ- wae press.” were just horrible. Plastics leech into in infant formula packaging. den of Grand Rapids and joined by ment numbers. Feeley is a native of Texas. After baby bottles and cups. ere had to e ban in Canada may have put the Northern Michigan Angels and e company is headquartered in graduating from the University of be something better.” Feeley on the map, but the Great Re- the Blue Water Angels of Midland. downtown Traverse City but does its Colorado, she moved to Los Angeles at something was silicone, an cession was hitting at the same time, Lee Gardner, a board member warehousing, packaging and order to pursue an acting career and was inert polymer made up of repeating which made it dicult to raise mon- with the Northern Michigan Angels, fulllment south of town at Grand there 15 years before moving to units of siloxane, which is a chain of ey and expand the company. said the group was drawn to Silikids Traverse Industries, using its em- Michigan. She got parts in public alternating silicon and oxygen at- In 2012, Feeley moved the compa- because it has a focus on northern ployees. GTI is a nonprot that pro- service announcements and had oms. ny to northern Michigan. “We need- Michigan companies, and was im- vides jobs for the handicapped. roles in several movies that never e timing of Silikids’ launch was ed to get out of Los Angeles. I wanted pressed by Feeley and “the creative Tom Henderson: (231) 499-2817 landed distributors, but found out fortuitous. e next year, Canada a dierent life for my kids,” she said. design and aordable prices” of her Twitter: @TomHenderson2

ble process, which precipitates the sugaring process to established juice by Grawn. JUICE various sugars out of fruit juices in companies, but Anderson convinced Currently, NewTree juices are dis- FROM PAGE 8 large, stainless steel holding tanks. him that they should form their own tributed by Lipari Foods Inc. to are up to 150 times as sweet as sugar ere wasn’t a eureka moment, juice company. Whole Foods stores in Grand Rapids, and heat stable. he said. “I read that omas Edison Anderson dispatched a colleague, Chicago and Lansing; Festival gro- Anderson and Hobson founded said not only did he invent the light- Greg Papalexis, to the Traverse City cery stores; Hollywood markets; and NewTree in 2013. bulb, but 20,000 things that were not area to talk to local fruit growers and Busch’s grocery stores. Anderson has a bachelor’s degree the lightbulb. at’s basically what build possible relations for the Anderson said NewTree, which in food science happened.” would-be company. began selling juice last February, from Iowa State In 2012, Hobson got a patent on One of those he talked to was John had revenue in 2016 of $76,000, University and the process. Since, then, patents King of King Orchards in Antrim which he said will be up substantial- has spent 30 have been applied for in the U.S., Eu- County, who told him about a state NEWTREE FRUIT CO. ly this year. He declined to give a rev- years in the food rope, China, Japan and India. of Michigan grant program to grow NewTree fruit juices are now distributed enue forecast, saying the increase industry. Years earlier, Hobson had been jobs in the agricultural sector. Even- to retailers throughout the region. hinges on negotiations with a com- Hobson, who working in Montreal, and one of his tually Papalexis wrote the grant pro- pany that distributes to health food has a degree in suppliers was Anderson, who sold posal that won the grant of $250,000, cess 40,000 gallons a month, though stores in the U.S. and with a major biochemistry Hobson’s company liquid smoke the maximum allowed under Gov. Anderson said once the idle facility European juice company that wants from the Univer- that he made in Wisconsin from Rick Snyder’s Strategic Growth Ini- is equipped with larger tanks, per- to market a healthier line of juices. Chad Anderson: sité du Québec à burning sawdust. Anderson is the tiative. haps later this year, the capacity can Diabetics are a major target for Co-founded Montréal and CEO and owner of Momentum Eighty-seven applied for grants, go to 400,000 gallons a month. NewTree, which is expanding pro- NewTree in 2013. has 25 years of ree Inc. in De Pere, which makes a with 14 being awarded. e company, which employs duction at a time when food compa- experience as a variety of avorings, spices and food NewTree has two adjacent ve, also rents a house in town for nies are responding to health con- scientist in the additives, including corn syrup, 7,000-square-foot production facili- Anderson and Hobson to use on cerns about the levels of sugar in food industry, is the inventor behind evaporated cane juice, crushed red ties just south of Airport Road, the their frequent visits. their products, both naturally occur- the Canadian patent for NewTree’s pepper, phosphate, maple avor and major thoroughfare in Traverse City Currently, the company’s three ring, as in fruit juices, and as addi- desugaring process. native tapioca. that routes south of the downtown kinds of fruit juices — tart cherry, tives in the form of fructose or corn He said it took him six years of tin- Hobson and Anderson had be- area and surrounding neighbor- apple and grape — are sold in syrup. kering before he came up with what come friends. Hobson originally hoods. One sits idle; the other, which 10-ounce bottles that are lled by a Tom Henderson: (231) 499-2817 he thought was a commercially via- thought he would just license the de- began operations in 2015, can pro- contractor, Cherry Growers in near- Twitter: @TomHenderson2 10 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017

SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS

the angel deal closed.” e group added 10 members in management consulting services; and Grand Angels in Grand Rapids. It is ANGEL He met with Cannon and with the 2016 and has a total of 31. Promethient LLC, which makes ther- doing the Court Innovations deal in FROM PAGE 8 help of two other co-founders, former Since its inception, members have mal heat-pump systems. collaboration with the Grosse Pointe- “I jumped into this with both feet,” Dow Chemical executives Ron Hurd raised more than $2.3 million for 22 e angels target companies in based Belle Angels, a group of women she said. “It was abundantly clear we and J.T. Hoagland, who were familiar companies, and it is in the process of manufacturing, consumer products investors. needed an angel group.” with the Blue Water Angels in Mid- either raising money or negotiating and technology, typically investing be- Portfolio companies include His- Gardner, who had recently retired land, the Northern Michigan Angels term sheets for four more would-be tween $80,000 and $100,000 in indi- toSonics Inc., a medical device com- to the Traverse City area, got an email launched in 2012. portfolio companies, Ann Ar- vidual deals, with members free to pany in Ann Arbor; Genomenon from a friend telling him about the Hurd is chairman of the group. bor-based Court Innovations, which choose which deal to back, with their Inc., which makes software to ana- edgling angel group. Hoagland owns Cherry Capital Foods, provides cloud-based online court ne- investment as low as $5,000. lyze an individual’s genome to help He had been CFO of Eco Oxygen which distributes food products made gotiations and mediations to allow liti- In addition to funding companies, ght disease; Advanced Battery Technologies LLC, an Indianapolis in the Traverse City area throughout gants to settle cases without going to the Northern Michigan Angels has or- Concepts of Clare; and Varsity News company that makes systems for treat- Michigan. court; and three Traverse City compa- ganized eight pitch events in Traverse Network of Grand Rapids, which ing waste water and which had been e group got advice and modest nies — NewTree Fruit Co., which has City for companies seeking funding. provides a cloud-based platform funded by angel investors when it was funding through a Michigan Econom- developed a patented process to take While it has a northern Michigan that high schools and universities founded in 2003. “I knew how import- ic Development Corp. program ad- most of the fructose and sucrose out of focus, it has syndicated deals around use to provide news on events. ant angel investing could be,” he said. ministered by the Ann Arbor-based fruit juice (see story, Page 8); Vector the state with other angel groups, such Northern Michigan companies that “I went to work at Eco Oxygen the day Michigan Venture Capital Association. Center LLC, which oers business as the Blue Water Angels and the have received funding include the Harrietta Hills Trout Farm in Cadillac and Traverse City-based Silikids Inc., which makes sippy cups and other household products for kids out of sili- cone (see story, Page 9), and Grawn- based Altus Brands, which makes out- door sports gear. e Northern Michigan Angels have had three high-prole exits. Two “HOW DOES DTE ENERGY companies went public — Livo- nia-based Gemphire erapeutics Inc. last August and ProNAI erapeu- KEEP NATURAL GAS SAFE?” tics Inc. in July 2015; and last Septem- ber, Ann Arbor-based RetroSense erapeutics LLC, a pharmaceutical company that hopes to use gene ther- Customer safety is our highest priority. That is why we take many precautions when apy to restore vision to the blind, was bought by Ireland-based Allergen plc. delivering natural gas to over 1.2 million homes and businesses across the state. We inspect e RetroSense sale for $60 million nearly 10,000 miles of pipeline each year using advanced technologies, and modernize about brought a return of three times their original investment to participating 100 miles of pipeline annually. We also add an ingredient that makes natural gas smell like Northern Michigan Angels, a return rotten eggs, making it easily identifiable in the case of a leak. that could grow much larger if Retro- Sense hits development targets. Fu- If you smell natural gas or suspect a leak, do not use electronic devices or open flames, ture payments built into the sale price could hit as much as $495 million over leave the area immediately, and call DTE Energy at 800.947.5000 24 hours a day. the next 15 years. “A lot of our group wishes they’d got in on that deal. We had seven mem- bers or so who were in on it,” said Can- non. e IPOs, on the other hand, repre- sent the ip side of the coin. ProNAi’s IPO was eagerly received, with shares opening at $17 on July 16, 2015, and hitting $28.68 by the end of the day. e company raised $138 million, and the bump in share price was a big gain, on paper, for its angel and venture cap- ital investors. But U.S. Securities and Exchange Commission rules have locked-in pe- riods for investors following an IPO. After six months, they can sell their shares, but only to accredited high- net-worth individuals. ey can’t sell shares on the open market for 12 months. Alas, on June 6, 2016, ProNAi re- ported disappointing results of Phase 2 human trials for its lead lymphoma drug, called PNT2258, and said it was suspending work on the drug and would focus on a newly licensed drug called PNT 141. Shares plummeted overnight, eventually hitting a low of $1.32. Late last week, its shares were trading at $1.56. Gardner was one of the angels who invested in ProNAi. In January, the company, which moved its headquar- ters to Vancouver after the IPO, changed its name to Sierra Oncology Inc. Gemphire opened at $10 a share and was at at $10.85 late last week. CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 11

SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS Trade mission helps state food biz target Chinese markets By Amy Lane Benson-Lockhart connected to store shelves. Nirvana teas are cur- at’s an aim of northern Michi- introduce customers and distribu- Special to Crain’s Detroit Business MDARD through Eastern Market rently sold primarily in Southeast gan global exporters Graceland Fruit tors to Michigan ocials, which is When Nancy Niezgocki returned Corp., producing her teas at the De- Michigan and on Amazon.com. Inc., Cherry Central Cooperative Inc. important to underscore govern- in November from her rst-ever ex- troit Kitchen Connect shared com- Benson-Lockhart declined to dis- and Shoreline Fruit LLC. ment support. port mission, to China, she wasn’t mercial kitchen space for food entre- close Nirvana Tea sales but said she In China, dried-fruit producer He said Graceland export sales to even o the plane when she had preneurs. MDARD provided her hopes exports to China and eventu- Graceland ex- China have doubled each of the last emails about her cinnamon-sugar resources about exporting and addi- ally other markets will add at least 20 ports dried cran- three years and China is now roasted almonds, pecans and tional assistance and exposure, in- percent to revenue. And with that berries, blueber- Graceland’s largest export market, cashews. cluding through international trade expanded business, she would like ries and cherries representing between 15 percent “e minute I got home, I was re- seminars and in-state gatherings to add employees in Detroit to her to distributors and 20 percent of Graceland’s com- ceiving emails from Chinese compa- that bring prospective international full-time sta of four. who sell them to panywide U.S. and international nies, saying, ‘Very nice meeting you, buyers to Michigan businesses. “It’s a way of giving back to the commercial sales, which he declined to specify. loved your product, let’s talk,’” said Traveling to China as part of the community, and putting Detroit on food industry Also selling in China online, and Niezgocki, president of Beverly Hills- trade mission, Benson-Lockhart the map … for tea,” Benson-Lockhart buyers and man- in bulk to distributors, is Shoreline based Old World Style Almonds Inc. wasn’t disappointed. “It exceeded said. ufacturers for Fruit, a cooperative of two families of Since then, she’s hired an admin- expectations,” she said. In addition to buyers’ meetings, use in applica- tart cherry growers in the Grand Tra- Brent Bradley: istrative assistant to help her with e mission included meetings the trade mission included tours of tions like baked verse region. Shoreline grows, pro- Growing interest exporting matters and to maintain set up in Shanghai and Shenzhen, stores and brie ngs by U.S. Depart- goods and cesses and markets cherries, pro- in dried fruit. prompt contact with interested re- where companies met potential ment of Agriculture ocials who breakfast bars. cesses blueberries and cranberries, tailers and distributors. Niezgocki is buyers vetted by a contractor work- sta agriculture trade oces in Chi- But the Frank- and is looking to strengthen its Chi- revising her product’s labeling to ing with the Chicago-based Food Ex- na. fort-based company is seeing grow- na business, said Brian Gerberding, conform to Chinese requirements, port Association of the Midwest USA Michigan food and agriculture ex- ing interest in snack-sized packages director of sales. researching needed health and sani- and MDARD. ports to China have grown steadily of trail mixes and dried fruit, said e trade mission provided “some tation procedures, and experiment- Benson-Lockhart said there was in recent years, reaching $70.9 mil- Brent Bradley, vice president of sales very strong new contacts” and “we ing with dierent types of packaging “great interest” particularly in Nirva- lion in 2015 compared with about and marketing. are very hopeful some of the con- to help her nuts stand out. na’s herbal and fruit-avored teas, $23 million ve years prior, accord- Graceland began selling small tacts we made will result in new And she’s looking at the possibili- including blueberry, an orange-ber- ing to MDARD. Top processed items packs of dried fruits in 2015 on the sales,” he said. ty of adding more production equip- ry blend of orange, cranberries and exported to China include products online Alibaba shopping platform Brian Klumpp, director of business ment and employees to roast the chamomile, and lemon-ginger. used for livestock feed and in the Tmall Global, where foreign compa- development at Traverse City-based 32-year-old company’s signature “With the fruit, it’s an introduction to brewing industry, and dairy items nies can sell retail packages directly Cherry Central, said the mission built nuts, now sold at special events, something dierent” from the tradi- like fresh cheese and milk concen- to Chinese consumers. on previous relationships Cherry sports and theater venues in Michi- tional teas known to the Chinese, trate. Among Chinese consumer Bradley, who travels to China sev- Central had formed in China, includ- gan and elsewhere. she said. tastes, Clover Adams said, there’s eral times a year, said going on the ing through another state-sponsored As for how exports could She’s following up on interest in opportunity for Michigan compa- November trade mission helped trade mission there in 2013. boost the company’s approximate anticipation of getting her teas on nies to make inroads. Graceland solidify relationships and SEE TRADE, PAGE 12 $1.2 million in sales, Niezgocki said: “I have a feeling probably it’s going to be gradual. But if I were able the rst year to add another $100,000 in sales, I would be very satis ed.” It’s the type of outcome that the Michigan Department of Agriculture and Rural Development hopes to foster in leading the November food and agriculture trade mission that Business Law Experience for some companies built upon rela- tionships already forged, and for ® others laid new ground. In Your Corner. e department is looking to open opportunities in the Chinese market for small and medium-sized Ŷ Business, contracts, transactions, employment and Michigan food producers and com- private equity, with a focus on technology, internet panies, focusing eorts on eastern and software companies. China and a middle class there with rising incomes and expected to Ŷ Named in 2014 and 2015 to Detroit Techweek reach 220 million people by 2020. 100; Detroit area leaders signi cantly impacting China is “an business and technology. extremely im- portant market that we cannot ignore,” said MDARD Direc- tor Jamie Clover Adams. And she said consumers are looking for Jamie Clover unique and dif- Adams: “Cannot ferent tastes, ignore” China. whether in craft beer, wine, dried fruits and snack foods and even tea. For Nirvana Tea Inc. co-founder and CEO Alecha Benson-Lockhart, who wants the loose teas produced by her 3-year-old business to be- come an internationally recognized First Tier Ranking brand, China seemed a natural place in Corporate Law and Commercial Litigation to start. “e genesis of tea drinking started in China,” she said. “So I Contact Matt Bower at [email protected] knew that it wasn’t something I’d Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings have to sell.” 12 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017

SPECIAL REPORT: CRAIN’S MICHIGAN BUSINESS

might play in that economy,” said has Chinese rep- TRADE participant Melanie LaPerriere. She resentatives who FROM PAGE 11 is vice president of sales and general participated in “ ere’s nothing like being face to manager for Naturipe Value Added the trade mis- face with people you work with,” he Foods LLC, the MBG marketing arm sion, is pursu- said. “We spent a great deal of time for processed blueberry products. ing. “We’re do- with existing companies we work She showcased blueberry pow- ing all of our due with; it also gave us a chance to meet ders, concentrate and individual diligence right with new people.” quick-frozen items to potential Chi- now to nd out With 10 member cooperatives nese buyers and said food service the best way to Mark Rieth: Sees representing more than 700 farms in and manufacturing avenues are a go about enter- opportunity for ve states and Canada, Cherry Cen- focus in building consumer demand ing the China Atwater. tral grows, processes and markets for blueberries. market,” said fruit including apples, blueberries, Michigan craft beers are also owner and CEO cranberries, strawberries and cher- looking to tap into Chinese tastes. Mark Rieth. ries and has annual sales of about Concurrent with the MDARD trade He sees opportunity for products $200 million. mission, Shannon Long, founder including Atwater’s Lager and Vanil- Cherry Central’s business in the and CEO of a Michigan business la Java Porter and said that while At- China market started with bulk sales that assists craft breweries with ex- water would initially export beer of dried fruits, Klumpp said, but porting, was stang a booth at Chi- produced in Detroit, it is also look- there are now “some retail products na’s largest trade show for imported ing at the potential of producing that are catching a little re,” like food and beverage sectors and pro- beer in China with breweries there. dried cherries, blueberries and moting brews including those from “We have some potential oppor- cranberries. LARRY PEPLIN Dark Horse Brewing Co. in Marshall, tunities with some large breweries “If you’re selling a premium Detroit’s Atwater Brewery, which has Chinese representatives who participated in Arcadia Ales in Kalamazoo and over there to do some strategic part- product, and our products aren’t the trade mission, is pursuing the China market. Greenbush Brewing Co. in Sawyer. nerships down the road, if that cheap, you need to have a pretty Long’s Brew Export LLC utilizes a makes sense,” Rieth said. good income to spend on some- North American tart cherry growers, So, too, are blueberry growers. warehouse in Comstock Park as a Atwater, which had revenue of thing … (that) is more of a treat, did a promotion highlighting tart Southwest Michigan’s Grand Junc- base to receive breweries’ products $11 million in 2016, exports to Peru, more of a luxury,” Klumpp said. “It’s cherries and uses. e institute, tion-based MBG Marketing, a pro- and export them to foreign distribu- Germany and Canada for sales that the rising middle class that’s going which last year hired a marketing ducer-owned blueberry marketing tors. make up about 2 percent of Atwa- to sustain us and keep us in business and consulting rm to represent it in cooperative, saw in the mission an American craft beer holds signi- ter’s overall business. But Rieth an- there.” China, is working “to increase our opportunity “to get on the ground in cant appeal in China, for both ticipates exports could climb to As part of the trade mission, the sales and demand in that market,” China” and understand aspects like high-quality ingredients and inno- about 20 percent of business in the Cherry Marketing Institute in De- said Julie Gordon, CFO and export culture, business channels and con- vative avors, Long said. next ve years, with the majority of witt, an organization funded by marketing director. sumer attitudes “and where we Detroit’s Atwater Brewery, which growth coming from China. CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 13

SPECIAL REPORT: SECOND STAGE Next in line

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Succession planning By Rachelle Damico “I encourage CEOs to leaders and have the ability to work Special to Crain’s Detroit Business independently.” means biz bosses must Have you identi ed the future identify potential Owen said if businesses are hiring nd, develop new leaders leaders of your company? successors from the start, from outside of the company, it’s im- Succession planning ensures em- perative to recruit for speci c talents ployees are recruited and developed and to ask their senior and capabilities that t the role and Topics: to t key roles within the company if leaders to do the same.” the company culture. a business owner dies, retires or Jane Owen, Vistage Michigan A way that businesses can see if a n Shri Thanedar of Avomeen LLC has been must leave the company. candidate ts that mold is to see how training his employees to lead the company Jane Owen, president of Vistage As a company evolves, business bor-based Avomeen LLC, docu- they interact with other employees. since he founded his business, Page 14. Michigan, a peer-to-peer business owners should take steps to ensure ments yearly performance reviews “I think it’s very important to n George Johnson, founder of Detroit rm coaching organization in St. Clair employees are ready to ll new — or “performance appraisals” — as communicate to your entire organi- George Johnson & Co., hired a managing Shores, said the number-one mis- roles. a way to measure an employee’s zation about where things are go- partner to ensure the business will carry take businesses make when it comes “Creating a culture that embraces progress. ing,” said George Johnson, founder on, Page 15. to succession planning is waiting to development and incorporating de- “Our vision will be not be dicult of Detroit-based George Johnson & n Matthew Likins, owner of 1st Choice the last minute. velopment into performance re- because it’s something that we are Co. Physical Therapy LLC, approached his “I encourage CEOs to identify po- views set the stage for employee aware of, thought about and planned In this month’s Second Stage, partners about forming a succession plan, tential successors from the start, and growth, especially to the next level of for,” anedar said. “I took great Crain’s talked to three dierent com- Page 15. to ask their senior leaders to do the leadership,” Owen said. pains to make sure that I hire people panies about nding and identify- same,” Owen said. Shri anedar, owner of Ann Ar- that are independent thinkers, are ing their future leaders. 14 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017

SPECIAL REPORT: SECOND STAGE Avomeen owner: ‘No one is irreplaceable’ By Rachelle Damico is often dierent than the supervi- Special to Crain’s Detroit Business sor’s,” he said. “If it’s not communi- Shri anedar, owner of Ann Ar- cated, it’s very dicult for an em- bor-based Avomeen LLC, has been ployee to improve and do better.” training his employees to lead the anedar said business owners company since the moment he should also pay attention to how a founded his business. successor ts into the company’s “No one is irreplaceable. It is im- culture. portant that a business continues “It’s so important that the new and does not overly depend on one leader understands the culture of person,” anedar said. “As a com- the company and builds upon that pany grows, people need to take on culture,” anedar said. “If the cul- and move into positions of higher ture of the company is contrary to responsibility.” the leadership style of the leader, Avomeen was founded in 2010 then that could result into a mis- and has 50 employees. e analytical match.” chemistry and drug testing company anedar said the company will has grown rapidly — up to 40 to 50 be introducing CEO candidates to percent every year. Avomeen’s management team to see anedar sold the majority of the how they interact. company to Chicago-based private “A lot of it is seeing how well those equity rm High Street Capital in AVOMEEN LLC interactions happen, and getting November of last year. However, he Shri Thanedar, owner of Ann Arbor-based Avomeen LLC, has been training his employees to lead. feedback from the team about the made legal agreements that employ- leader,” he said. ees would remain with the company have run companies, grown compa- one that’s a good t,” anedar said. with the company’s. A supervisor in- anedar will be remaining with and that he would remain as interim nies and sold companies,” he said. “It’s not so much timing as nding dependently appraises the employ- the company as a board member CEO until he nds a replacement. “We are looking for someone that the right person.” ee and sets up a formal meeting to and will help transition the CEO into For the past two months, Avo- has not only grown revenue, but un- Having developed employees, discuss it. their new role. meen has been vetting candidates, derstands the challenges of revenue anedar said, allows for a smoother is allows employees to take the “It’s very important to be available anedar said. To help with the pro- growth.” transition. lead, be held accountable for their if needed, but it’s also very import- cess, the company hired an outside anedar said he will not rush Avomeen has yearly performance responsibilities, and feel valued, ant to step away and not interfere executive and C-level search rm. through the hiring process and has reviews — or “performance apprais- anedar said. with the process,” he said. “ e lead- “We have chosen a search rm been considering candidates both als” — where each employee does a “ at communication process is er should feel that he or she is now that specializes in that level of hiring inside and outside of the company. self-evaluation to set goals for him- so important because the employee’s responsible for the future and the — nding qualied candidates who “We won’t act until we nd some- self or herself and see how they align perception of his or her performance growth.”

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SPECIAL REPORT: SECOND STAGE Adviser helps accounting
rm handle transition By Rachelle Damico To help with vetting, Johnson closure and transfer of ownership. Special to Crain’s Detroit Business asked friends for recommendations (McCree currently had a minority George Johnson, founder of De- and reached out to trade groups to stake in the company.) An attorney troit accounting and advisory rm which he belongs, including the nalized the agreement. George Johnson & Co., hired a man- Troy-based Michigan Association of “If things don’t go well, we’d go INAUGURAL 2017-18 SEASON aging partner to be able to transfer Certi ed Public Accountants. ahead and split o,” Johnson said. the day-to-day responsibilities of the It was not an overnight process. “It’s like a premarital agreement — company, and to ensure the busi- Johnson said he vetted about 10 dif- you don’t get married unless you ness will carry on. ferent nancial institutions or indi- think it’s going to work out.” “It allows a business to continue viduals during an eight-year period. Johnson said he delegated re- to service without interruption, and “You have to give yourself enough sponsibilities to McCree in steps — transferring to a new company time,” Johnson said. “It may take six rst meeting with clients and then would require a period of additional to eight months to nd out some- handling more complex parts of the time on the cli- thing will not work.” business, such as nance and mar- ent’s part,” John- For instance, in 2009, Johnson keting responsibilities. son said. “It’s a and his consultant ew out of state “It’s dicult — if not impossible matter of setting to meet a prospective candidate, but — to give someone everything at things up until I reconsidered after receiving the once,” he said. “We assign responsi- phase out.” rm’s nancial records. bilities, and each person is account- Johnson in “e practice wasn’t a solid - able and has an open mind.” 1971 founded nancial practice, and our philoso- Johnson said he then steps out of the company, phies were dierent as far as how to the way to allow McCree to lead. which employs manage the practice,” Johnson said. “ere comes a time when you 20. e rm, “If you see something that’s not go- have to walk away,” Johnson said. “If

George Johnson: which also has a ing to work, you really shouldn’t get you have a competent person com- Hired a managing Chicago oce, into it.” ing in, they’re not going to have partner. focuses on re- Johnson found a t when he ap- someone dictating what to do. at’s tirement and proached Anthony McCree, a prin- a recipe for failure.” bene t plans, and does audit and tax cipal at UHY LLP who had 14 years Johnson said he meets with Mc- work for health care and real estate of experience with the audit and as- Cree every Monday for about 1-2 businesses. surance group, health care practice hours to discuss issues that may e company started forming a and U.S. Securities and Exchange come up and to set agendas. practice continuation plan in 2008, Commission practice. “One key factor in our success is which ensures the business is trans- ey had met before about seven communication,” Johnson said. “If ferred to another CPA rm or indi- years ago, when George Johnson & concerns are coming up, we resolve vidual in the event of disability or Co. was working on a nancial audit them each week, or set up a plan to death. for two clients. McCree was leading resolve the issue.” Johnson hired a consultant, Au- the audit committee. Johnson said he has no current gust Aquila from Minneapolis-based “I was able to see how he worked plans to retire, and is focusing on Aquila Advisors LLC, to help form and handled himself,” Johnson said. client retention, development and the plan and nd a successor. is Last year, Johnson and McCree overall vision for the rm. included interviewing candidates by met and discussed responsibilities Last year, Johnson hired South phone, performing background McCree would take on as the com- Carolina-based consultant Bob Gib- checks and investigating nancial pany’s managing partner. ble to work with McCree and John- records. “We both had the same philoso- son on a strategic plan, which in- “It’s good to hire a rm or person phies, so it was easy to agree upon cludes plans to expand their who specializes in your industry,” dierent things,” Johnson said. Chicago oce. Johnson said. “ey have a lot of ex- During a four- to six-month peri- “I look at the future as being very perience as far as where things have od, they negotiated terms and pre- good,” Johnson said. “Even though gone wrong. Why reinvent the sented them to an attorney, which things are going well, we want to wheel?” included ownership stake, nondis- look down the road.” 1st Choice goes to school on succession By Rachelle Damico “We are thinking about what we Special to Crain’s Detroit Business “It hadn’t been need to do so that when that hap- After taking a class on business something that I pens, it’s a smooth and a bene cial management and growth, Matthew thought about transition for everyone, with the no- Likins, owner of 1st Choice Physical tion that you plan these things years erapy LLC, approached his part- previously in advance,” he said. ners about forming a succession because I’m quite Likins said the company is hiring plan. and looking at identifying, recruiting “It hadn’t been something that I a ways from and developing talent in hopes that thought about previously because retirement.” future employees will move into an I’m quite a ways from retirement,” ownership position with the compa- Likins said. “A good succession plan Matthew Likins, ny. DON’T MISS YOUR OPPORTUNITY can take many years to properly im- 1st Choice Physical Therapy LLC “Some therapists are perfectly in- plement, and if you wait until you tent coming in and providing great LOCK IN YOUR SEATS TODAY think you’re ready to retire, it’s great- three locations and celebrated its 14- care to their patients, and that’s as ly limiting to your options.” year anniversary this year. far as they want to take it,” Likins Likins, a physical therapist, owns Likins approached his partners said. “at’s a wonderful thing, but the Sterling Heights-based physical about forming a succession plan af- then there’s also folks that want to For more information, call 248-377-0100 therapy company along with part- ter taking a class last year at Gold- provide great care and see them- or visit www.pistons.com ners and physical therapists Peter man Sachs Group Inc.’s 10,000 Small selves growing into a greater role — Kovacek and Dave Walters. Businesses program at Wayne State running a clinic or eventual owner- e company employs 15, has University. ship of their own clinic.” 16 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 ADVERTISEMENT SECTION PROFESSIONAL LAW SERVICES

ACCOUNTING

Richard J. Cantor Robert W. McLeod Piotr Luc Managing Director Associate Senior Director Brooks Kushman P.C. Brooks Kushman P.C. is pleased to announce the addition of Richard Cantor to the ‡ rm’s South‡ eld, MI oš ce. Cantor focuses his practice on domestic patent prosecution and freedom to operate opinions. He regularly advises clients on the development and management of Christopher Carroll patent portfolios in the electrical and computer soœ ware arts. Prior to joining Senior Manager Gitanjali V. Kundich Shareef Simaika Brooks Kushman, Cantor was an patent Senior Director Director RSM US LLP attorney at a ‡ rm in Cincinnati. Chris has joined RSM’s international tax Alderney Advisors team responsible for the development of the ‡ rm’s Michigan and Ohio transfer Robert W. McLeod, CPA, joined Alderney at inception of the ‡ rm in 2013. In his pricing practice. Chris serves public and RETAIL new role as Managing Director, McLeod will expand his business development private multinational companies in the role as head of the transaction advisory team and continue to lead engagements automotive, agriculture, chemical, across Alderney’s client portfolio of global corporations, investors, and ‡ nancial consumer product, education, retail and institutions. McLeod earned his BBA in Accounting and Finance from the industrial equipment and product University of Michigan. He is a licensed Certi‡ ed Public Accountant in Michigan industries. With prior roles at both PwC and Illinois. and EY, Chris has extensive experience with planning and structuring, transfer Piotr Luc, CFA, joined Alderney in 2015. In his new role as Senior Director, Luc will pricing policy design and transfer pricing lead client engagements related to debtors and creditors in distressed situations, documentation. bankruptcies, commercial negotiations, and capital strategies. Additionally, Luc will focus on growing Alderney’s presence in the New York market, leveraging his signi‡ cant experience in complex, global commercial matters. Luc is a CFA Nicole Colapietro charterholder and earned his BBA in Economics from Baruch College in New Senior Associate David Ladd York. The Siegfried Group, LLP Vice President-Chief Financial O‹ cer Nicole Colapietro joins Art Van Furniture Gitanjali V. Kundich, MBA, joined Alderney at inception of the ‡ rm in 2013. In her Siegfried’s Detroit Market new role as Senior Director, Kundich will lead the strategic growth platform for In this role, Ladd is responsible for every as a Senior Associate. She the supplier risk management scorecard analytics team, play a vital role in the facet of the company’s ‡ nances, including consistently remains forward-thinking, always ideation process of digital marketing initiatives, and continue to drive business the management of ‡ nancial risk for Art looking for new ways to improve eš ciency development e¤ orts. Kundich holds an MBA in Finance, Statistics, Economics Van Furniture and its suite of brands, as and further a client’s initiatives and goals. and Marketing from the University of Chicago Booth School of Management. Colapietro earned her Bachelor of Science in well as the development and execution of the company’s ‡ nancial planning. Ladd will business administration from Wayne State Shareef Simaika, CTP, joined the ‡ rm as Director in 2017. Simaika has expertise in work with and oversee the company’s University and was most recently a Senior commercial banking, ‡ nancial turnaround and restructuring. He began his career ‡ nancial department team, ensuring all Associate at PwC. at Comerica Bank, where he managed distressed lending relationships and ‡ nancial goals are met and in alignment negotiated rehabilitation and workout solutions. He also served as a regional with Art Van Furniture’s vision for the credit oš cer, where he managed loan approvals across multiple lines of future. Previously, Ladd served as VP- businesses. He holds a BA in Finance from Michigan State University and is a Finance Retail Operations at Sears Certi‡ ed Turnaround Professional. ARCHITECTURE Holdings Corp.

ARCHITECTURE HUMAN RESOURCES

Camilla Moretti Gary Dembs Vice President Chairman HKS Network of Non- Moretti is a senior pro‚ t Search Melanie Berger Christopher George planner and architect Consultants Principal, Studio Leader, Associate, for large-scale The Network of Healthcare Design Studio Architecture + Design healthcare projects around the world. Non-Pro‡ t Search Consultants Harley Ellis Devereaux (HED) A Lean Six Sigma Green Belt, she (www.nnsc.org), a Chicago, IL-based studies and facilitates workshops on consortium of top executive search HED has promoted Melanie Berger, CPSM, to Principal, Studio Leader, Healthcare Design operational, logistical and functional ‡ rms who recruit for the non-pro‡ t Studio. In this role, Berger leads client development and business operations for the ‡ rm’s issues that promote operational best sector, has named Gary Dembs as its Healthcare Design Studio. She has more than 20 years of business development expertise, practices and evidence-based design ‡ rst board chairman. Dembs, CEO of including previous experience at AECOM and Parsons. strategies. Moretti is also heavily the Non-Pro‡ t Personnel Network, a involved in applied research projects South‡ eld, MI based ‡ rm, will lead the ED has promoted Christopher George, to Associate, Architecture + Design. In this role, Chris for the ‡ rm and how they can lead to group’s executive committee. Dembs, is responsible for leading the design and technical systems for large, complex projects for innovative design. She is board 60, of Huntington Woods, MI., has been the ‡ rm’s South‡ eld oš ce. In addition, Chris will continue to support technical project certi‡ ed by the American College of consulting with non-pro‡ ts since 1980. team leadership and coordination relative to the use of BIM technology as a BIM Champion. Healthcare He founded NPPN in 1994. February 6, 2017 CRAIN’S DETROITC RAINBUSINESS’S DETROIT BUSINESS // FEBRUARY 6, 2017 Page17 17

PEOPLE: $2.57 million, an 11.7 percent bump, ere are also no records of Paglia ters there, the building for a short SPOTLIGHT BUILDING since the lawsuit was led in 2015, obtaining a city building permit for time was the tallest in the city, ac- Invest Detroit names FROM PAGE 3 according to city records. the work, which is also required, ac- cording to Historic Detroit. A suggestion, or a Last week’s sign removal prompt- cording to guidelines from the HDC. According to CoStar Group Inc., a McClelland rst COO demand? ed a same-day ling of a motion to Messages left with Barris, Sott, Washington, D.C.-based real estate hold Paglia in contempt of court. Denn & Driker attorneys were not information service, the building Sarah McClelland was named e issue that sparked the case is Sterling Group is asking the court to returned. rents for an average of $14.95 per the rst chief operating ocer of what exactly Exclusive Realty LLC make Paglia put the signs back up. On Friday morning, Dezsi led a square foot per year and has 188,000 Invest Detroit, the Detroit-based CEO Charles Mady, the broker on In a response to the contempt motion to declare Sterling’s pur- square feet that are 79.6 percent nonprofit the deal, told Paglia shortly before motion, Dezsi argues that the trade chase agreement in default. leased. community the expected sale on Aug. 15, 2015. name “Ford Building” was never in- e contempt of court motion development Paglia and his attorneys Dennis cluded in the sale and that the signs A rich history also said that Paglia is refusing to nancial in- Dettmer and Michael Dezsi contend are not “xtures that become part of transfer the building's website do- stitution an- in court records that Sterling Group, the property” being sold, based on a According to Historic Detroit, main, www.fordbuilding.com, to nounced. through Mady, demanded a 1999 Michigan Court of Appeals which tracks Detroit building archi- Sterling Group. Dezsi said in his l- McClel- $500,000 price cut because of imme- case. e response also says that the tecture and history, the building was ing that the domain name was not land, 57, will diate capital improvement needs to 1991 purchase also included a sepa- designed by Daniel Burnham, who part of the agreement, although the continue on the building. ey say they declined rate $100,000 purchase of the trade also designed the Dime Building website’s contents were. Sarah McClelland the board of to reduce the price, and therefore name, which would make it separate (now Chrysler House) across the As of last week, the building sale directors, the purchase agreement was nulli- from the building. street from the Ford Building, as well had not been nalized. where she has served since 2013. ed, according to court documents. “I’m not going to comment on” as the Flatiron Building in New York And its website had been down McClelland previously served Sterling Group and its attorneys at the signs being removed, Paglia said City. for more than 48 hours. as chief control ocer of J.P. Mor- Detroit-based Barris, Sott, Denn & last week, adding that he did not Named for the Edward Ford Plate Kirk Pinho: (313) 446-0412 gan Chase & Co.’s global com- Driker PLLC contend — and Mady bring the matter before the Detroit Glass Co., which made its headquar- Twitter: @kirkpinhoCDB mercial banking business, presi- says in a sworn adavit — he merely Historic District Commission, which dent of the Michigan market for suggested, not demanded, a price would typically have to be consulted Chase, and managed the central reduction and that the contract on such a building modication be- middle market of commercial should have been honored. cause the building is in a local histor- banking groups in Ohio, Ken- It’s not known if the building has ic district. tucky, Tennessee and Michigan. another buyer in the wings. Its “It (the sign) could be getting JOB FRONT state-equalized value has increased cleaned. ere’s a lot of dierent INDUSTRIAL SERVICES MISCELLANEOUS since 2015 from about $2.3 million to things that could be going on.” Takata parts with 2 C.W. JENNINGS Auburn Hills execs INDUSTRIAL EXCHANGE SURVEY Global Industrial Consulting Troubled Japanese auto sup- Construction • Acquisitions ANALYZE plier Takata Corp. has quietly Exporting • Financing parted ways with two top execu- CALENDAR (855) 707-1944 MATCH tives and the general counsel at WEDNESDAY guests of members; $75 nonmem- its North American unit, and the FEB. 8 bers. Website: econclub.org. LEGAL SERVICES - IMMIGRATION company isn’t saying who is now Car industry brieng: Driving Re- Immigration Law Firm, AV-rated running the TK Holdings Inc. sub- gional Competitiveness in Advanced Digital Marketing Boot Camp. 8-11 Antone, Casagrande & Adwers, P.C. sidiary based in Auburn Hills. Mobility. 9 a.m.-noon. Center for Au- a.m. Feb. 15. Detroit Regional Cham- Dedicated to Business, Employment, Former Takata North America tomotive Research. is event will ber. Learn the latest innovations in and Family Immigration Matters CrainsDetroit.com/JobConnect | President Kevin Kennedy and for- provide a forum for organizations social media, how to digitally tell a 31555 W. 14 Mile Rd. Ste. 100, Farmington Hills, MI 48334 mer Executive Vice President leading the way to next-generation brand’s story, and trends and tips to (248) 406-4100 www.antone.com Crain’s Classifieds Gets Results Robert Fisher are no longer with automotive and mobility technolo- improve digital marketing strategy. the company, according to their gies to present their latest develop- College for Creative Studies, Detroit. LinkedIn proles and a former ments and shed light on transporta- $55 members; $95 nonmembers. Takata insider with knowledge of tion of the future. VisTaTech Center, Contact: Marianne Alabastro, the situation, Automotive News Schoolcraft College, Livonia. $95. phone: (313) 596-0479; email: mala- REAL ESTATE reported. Contact: Shaun Whitehouse, phone: [email protected]; website: Eric Laptook, general counsel, (734) 929-0493; email: swhite- detroitchamber.com/digital-mar- AUCTIONS COMMERCIAL PROPERTIES chief safety and compliance o- [email protected]; website: car- keting-boot-camp. cer, also is no longer with Takata’s group.org. Chesterfield Twp. - 53 Acres, Resid’l - WNS on site w/plans to devl’p. $675K U.S. unit. It was immediately un- Prepare to Meet Your Funder! Truths 5± ACRE *************************** clear exactly when or why the UPCOMING EVENTS on Small-business Financing. 2-4 p.m. COMMERCIAL LOT Monroe ~ 24 Resd’l Lots, WNS, Paved Rd, on a 5-lane, heavily-traveled road off I-75 $19K Ea. O.B.O. three men left, who is lling their 2017 Technology Industry Outlook. 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Phone: (734) (517) 676-9800676-9800 Visitors Bureau named Dave phone: (800) 427-5100. 249-5880; email: entrepreneurship@ www.SheridanAuctionService.com 43 ACRES - JEWELL ROAD Beachnau senior vice president of wccnet.edu. Between 27 & 28 Mile Roads sales, marketing and sports, and Giving Up the Wheel: The Future of Advertise your Washington Township promoted Kris Smith to director Mobility and Its Impact on Michigan. Zoned Residential (R1A) of the Detroit Sports Commission, 11:30 a.m.-1:30 p.m. Feb. 14. Detroit Visit Products and Services in Calendar guidelines. With Water & Sewer the tourism bureau announced. Economic Club. David Dauch, chair- Crain’s Detroit Business crainsdetroit.com and click “Events” Bid Pkg available at: Beachnau, 54, whose role is man and CEO, American Axle & near the top of the home page. www.washingtontownship.org newly created, has been with the Manufacturing Holdings; Matt Si- Then, click “Submit Your Events” WATERFRONT PROPERTY bureau for 24 years. He has been moncini, president and CEO, Lear from the drop-down menu that will DSC executive director since Corp.; and James Verrier, president appear. Fill out the submission form, St. Clair River, Algonac MI Call or email today for information 2001. Smith, 40, has been with and CEO, BorgWarner Inc., will dis- then click “Submit event” at the Residential Point Lot on a custom advertising plan! the commission since 2012, most sect current mobility eorts and bottom of the page. 130’ X 210’ Steel Seawall recently as national sports sales share insights on the rapidly evolv- All Underground utilities on site More Calendar items can be found "Private" Island & Street [email protected] manager. ing road ahead. Westin Book Cadil- at crainsdetroit.com/events. $750,000 - Terms available 313.446.6068 lac, Detroit. $45 members; $55 Email Robert ~ [email protected] 18 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 view refugee vetting and security, AGENCIES Where Michigan refugees come from “but we really hope they stick to FROM PAGE 1 The bulk of refugees coming to Michigan between scal years 2012 and 2016 were from the seven countries in the executive order these 120 days and it doesn’t be- Beyond the nancial strife, the that President Trump signed on Jan. 27. come 240 or 360,” he said. agencies are concerned that if they “We have people assigned based lose employees possessing special- COUNTRY OF REFUGEE’S ORIGIN FISCAL YEAR on a substantial contract. … If we 2012 2013 2014 2015 2016 ized language and cultural awareness don’t have a contract to operate this skills, they may be tough to replace. Iran 8 9 11 22 9 program under, we can’t operate it. ere’s also uncertainty about the Iraq 2,484 3,431 2,759 1,442 1,119 We’ve been talking to programs future of resettlement operations be- around the country and they are in yond the terms of the executive or- Libya 0 0 0 0 0 the same place.” der, given that the bulk of refugee Somalia 98 196 275 287 255 Southeast Michigan’s largest reset- placements in Michigan going back Sudan 16 99 24 90 55 tlement agency, Detroit-based Sa- ve or more years has been people maritas (formerly Lutheran Social coming from the seven countries af- Syria 1 6 1 179 1,374 Services of Michigan) is still gauging fected by the executive order: Iran, Yemen 0 1 0 8 3 the impact the new federal policies Iraq, Libya, Somalia, Sudan, Syria will have on its 100 employees en- Total from seven countries in executive order 2,607 3,742 3,070 2,028 2,815 and Yemen. gaged in resettlement operations. But e Jan. 27 order signed by Trump Total of all refugees to Michigan 3,594 4,651 4,006 3,012 4,258 it’s clear it will be signi cant, Sean de suspended all refugee admissions Four, vice president of child and fami- into the U.S. for 120 days. It’s also Source: U.S. Department of State ly services, told Crain’s last week. preventing anyone from the seven months it would take to repopulate ship-based Catholic Charities of bene ts and social security, enroll- Last year, the agency assisted Muslim-majority countries from en- the pipeline of refugees coming to Southeast Michigan. ing children in school and adults in 1,950 refugees, an unprecedented tering the U.S. for 90 days and block- the U.S. would cut that gure by at “It’s very dicult to start up, shut an English-as-a-second-language number, de Four said. ing Syrian refugees inde nitely. least another third, leaving roughly down, start up, shut down — that’s course, and transporting them to With the executive order, “we’re Additionally, the order will reduce $1.2 million to be split among the lo- one of our struggles with this (or- mandatory health screenings and going to have signi cant layos, and the total permitted number of refu- cal agencies according to the num- der).” the grocery store. the agency is going to have to absorb gees for the 2017 scal year from ber of refugees each has handled Catholic Charities, one of the larg- Catholic Charities and other local the expenses of rent and other over- 110,000 to 50,000, as part of moves and would handle. est resettlement agencies in South- resettlement agencies are ramping head that won’t be covered by the the administration said are aimed at None of that, however, takes into east Michigan, laid four people o up fundraising in the hopes of arrivals we were anticipating,” de preventing foreign terrorists from consideration concerns that reset- earlier this month following a de- weathering the refugee suspension Four said. gaining entry to the U.S. tlement activity may not fully pick cline in refugees late last year. nancially. But the suspension and Samaritas is operating on a $107 Detroit has been one of the top back up after the terms of the execu- It’s now redeploying its 10 re- subsequent budget issues also bring million budget this year. Of that, refugee resettlement destinations in tive order expire, given the region’s maining employees involved in that with them the potential for losing about $10 million was budgeted for the U.S., injecting tens of millions of focus on resettling populations hail- work to other parts of the nonpro t top talent that could command its resettlement activities, with $6 dollars into the local economy, be- ing from among the countries where possible as a way to delay lay- higher pay elsewhere, Blaul said. million expected to fund administra- cause it has a resettlement infra- named in the order. os. “We’re a pretty lean organiza- “When we lay o people and they tive costs. e remaining $4 million structure that is “second to none,” Local resettlement agencies that tion, so having a little extra help is go into the job market, it’s very hard would have been pass-through said Steve Tobocman, executive di- had staed up to handle a continued good. But we can’t sustain that,” to get them back. ... With the lan- funding for refugees. rector of Global Detroit, a proponent inux of Syrian refugees that began Blaul said. guage skills, cultural skills and USCRI’s Detroit eld oce, which of immigration as an economic de- last year said they won’t be able to e agency placed 732 refugees in awareness and the right tempera- typically resettles 600-700 refugees per velopment strategy. support current stang levels with scal 2016. ment — lots of patience and under- year, took in 80-90 refugee families Having a robust refugee resettle- the new limitations. Like other resettlement agencies, standing — that’s not something you from Iraq and Syria in January, mean- ment infrastructure is important to “is isn’t an enterprise you start it provides contracted services for just go onto a job site and advertise ing it will have federally backed ser- ensuring that local refugee resettle- up overnight. It requires years of the rst 90 days including: providing for and get all of these quali ed can- vices to provide into April. But no one ment agencies can successfully work to get it right,” said William an aordable, safe home with fur- didates.” knows what will happen after that, said compete for federal refugee resettle- Blaul, director, institutional ad- nishings and cultural orientation, Catholic Charities hopes and Zeina Hamade, community outreach ment contracts going forward, which vancement for Clinton Town- assistance in applying for safety-net trusts the federal government to re- coordinator for the local oce of the in turn, is important to the region’s Arlington, Va.-based organization. economic future, he said. Stang changes are likely, she “We know that immigrants and ref- said, but the agency isn’t sure how ugees have signi cant entrepreneur- Family nds local help aer eeing Iraq many layos it will have to make and ship rates, bring a diversity of skills when they will come. needed for local business to compete Seeing his barber shop burned “Right now, we’re taking it day by and grow and add diversity to our lo- because he was the wrong religion day and working on advocacy and cal economy,” Tobocman said. was bad enough, but when his continuing to build our relationships e U.S. has taken in 32,954 refu- 5-year-old daughter was kidnapped, with members of Congress who’ve gees from all countries since Oct. 1, Odai Alaaneri knew it was time to been very supportive,” she said. 2016, according to the U.S. Depart- leave his native Iraq. “We’re hoping things will change ment of State. With the new ceiling, ankfully, he and his wife were sooner rather than later, but we real- just over 17,000 additional refugees able to get their daughter back the ly don’t know what will happen in will be allowed into the U.S. between same day in the summer of 2012, af- the next few months.” now and the end of September, even ter the town’s faith leaders negotiat- Like its peers, Jewish Family Ser- after the 120-day hiatus is lifted. ed her release. vices of Washtenaw County geared Typically, Michigan resettles ey returned home only to grab up to resettle more clients than ever about 6 percent of the refugees com- their passports and clothing before before, and now “we are at the point ing to the U.S., and Southeast Michi- eeing to Turkey with their daughter where we might have to lose all of it,” gan takes in about two–thirds of and her 2-year-old sister the same night said Executive Director Anya them, Tobocman said. He estimates and staying there until they were al- Abramzon. the region could have expected to see lowed to come to the U.S. one year ago. About half of the agency’s 60 em- about 4,300 of the 110,000 refugees At Detroit Metropolitan Airport, a ployees provide resettlement and originally expected in scal 2017. representative from the U.S. Com- additional services for refugees such at would have added up to mittee for Refugees and Immigrants as English as a second language, more than $4 million in estimated, Detroit met them and took them for health screenings and employment total federal funding coming to the a warm meal before taking them to and training assistance. four local resettlement agencies with their new home in Dearborn. e nonpro t, which operates on a the $950 per person allocation to USCRI passed through one-time COURTESY OF ODAI ALAANERI $2.8 million budget, expects the sus- each agency to provide services for federal funding to help the family Odai Alaaneri and his wife, Nagham Alnuaimi, ed Iraq in 2012 with their two pension to translate to a loss of the rst 90 days. ($925-$1,125 per person, depending daughters and lived in Turkey, where this picture of the girls was taken. $50,000-$60,000 per month, she said. But given the 55 percent reduc- on need) and helped them sign up for It’s working hard to nd additional re- tion in the total number of refugees food assistance and Medicaid. It also chaueur’s license after three months rector of the Detroit eld oce, sources to bridge the pause in refugee that will be allowed into the U.S. this pointed them to the nearest school for so he could move into a better job, translating for Alaaneri. activity and sustain the programs. year, and assuming the region saw a their children, connected them with driving a school bus for Keys Grace e family six months ago wel- “e question is: Is this just 2017, comparable cut, that would leave resources to learn English, helped Academy in Madison Heights. comed a new daughter who plays or is this business as usual going for- $1.8 million in total federal resettle- Alaaneri nd a job at nearby Land Alaaneri, 40, is very happy that he with her sisters, now ages 6 and 9. ward?” she said. “I think it’s import- ment dollars for the four local agen- Mark Industries Inc. within 40 days of and his family are in the U.S. because And Alaaneri is making plans to ant for all of us to know that.” cies. e four-month hiatus in any arriving in the U.S. and lined him up they are safe and able to build a life open a barber shop in metro Detroit. Sherri Welch: (313) 446-1694 refugee inux and the several with the training needed to acquire a once again, said Taw k Alazem, di- Sherri Welch Twitter: @SherriWelch CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 19 ably not that big,” said Hoyt Bleakley, nomic impact study on the popula- the U.S. to start or scale businesses were from the seven nations, accord- EFFECT a University of Michigan economist. tion by Chmura Economics & here. e White House conrmed it is ing to a September study by the liber- FROM PAGE 1 “But it’s denitely disturbing as a Analytics. e funds included $2.5 also considering adding more nations tarian think tank Cato Institute. None terrorism. precedent. We’ve operated with vi- million on wages to sta members at to the list, including Pakistan. Rumors of those 17 were responsible for any On Jan. 27, Trump signed the ex- sas for a very long time, under an im- the organizations and $1.1 million on have own that it may include Afghan- deaths in the U.S. ecutive order, which temporarily plied bargain that if you come here, food, clothing and transportation. istan, Colombia and Venezuela. Ballard said the supporters of a ban blocks travelers from seven Mus- work hard and play by the rules, However, the economic impact Law rms are advising clients to not like this are basing that support on lim-majority nations and suspends there’s a path for you. But that mes- outpaced the support spending ten- only ground visa workers from the ini- fear, not data. the resettlement of refugees in the sage now is that bargain is only valid fold, the study reported. e eco- tial seven countries, but any countries “Trying to shape the debate, you U.S. e order drives a wedge be- if we feel like upholding it.” nomic impact of those refugees in with similarities — e.g., predominant- can point out that on net, immigration tween Southeast Michigan’s Matt Simoncini, CEO of South- 2012 is estimated at $48 million and ly Muslim countries with links to ter- raises GDP, probably increases the long-standing relationship with im- eld-based Lear Corp., said this par- the creation of 650 jobs. rorism, such as Indonesia, said Mike rate of innovation, but I don’t know migrants, and refugees, from those ticular order doesn’t have a near- Between 2003 and 2012, the refu- Nowlan, partner and co-leader of the whether people are listening,” Ballard countries — Iraq, Syria, Iran, Libya, term impact, but the company, in gees in Cleveland started 38 busi- immigration practice at Clark Hill PLC said. “For the opponents of immigra- Somalia, Sudan and Yemen — and general, “supports the free ow of nesses, hired 141 employees, and in Detroit. tion, the economic arguments ... are in the local economy and workforce. documented, legal immigration.” accounted for 248 home purchases e White House also, at least brief- like (fourth) place, behind racism, xe- However, many fear the ban won’t Michigan has a long history of im- in Cuyahoga County, according to ly, considered revoking all immigrant nophobia and religious intolerance.” be temporary and that further exec- migrants helping drive its economic the study. and nonimmigrant visas of nationals Zadoyan, a devout Christian, said utive orders, drafts of which were engine. In 1980, thousands of Hmong, an from the original seven nations cov- it’s not religion that binds his new leaked from the White House last Syrians, for example, were among ethnic group from rural regions of ered in the executive order. community in the U.S., but the experi- month, will target high-skilled immi- the rst Middle Easterners to mi- Laos and ailand, were granted ref- “ e executive branch has tremen- ence of abandoning the dangers of the grants who come to the U.S. on H1-B grate to Michigan in the late 1880s. ugee status and immigrated to the dous latitude over this matter,” Nolan Middle East for a new home in a new visas, which could further limit busi- By the early 1900s, Middle Eastern U.S. following the Laotian Civil War, told Crain’s. “ ere are countries with country. nesses’ access to talent. people were ocking to Detroit seek- which was rife with ethnic cleansing known issues that are not listed. How “Muslim or Christian ... we’re all A Detroit CEO told Crain’s he ing employment from Henry Ford and military attacks. long before they get added?” human,” Zadoyan said. “I love this job. knows of at least one Southeast and settling in Highland Park and St. Paul, Minn., is home to the e seven countries represent I’ll do anything I can to help people, Michigan company whose leader- later in Dearborn. largest Hmong population in the nearly 40 percent of all refugees ac- whether they are a Christian from Iraq ship has warned its H1-B visa em- Southeast Michigan is now home to U.S. with more than 65,000 people of cepted into the U.S. in the past 10 or a Muslim from Syria or something ployees — the stars of this compa- more than 100,000 immigrants from Hmong descent. years, but represent a small slice of else. Life is challenging, and the best ny’s workforce — not to leave the the Middle East. However, their eco- As of 2013, Hmong businesses in known terrorist plots. thing we can do is to help each other country. “ e fear is they won’t be nomic performance is a mixed bag. greater Minneapolis-St. Paul had Seventeen of the 154 foreign-born reach our goals of providing for our able to come back to the United e median household income combined revenue of $100 million, terrorists convicted of carrying out or families.” States,” said the executive, who for those who identify as Arab in the according to Asian Americans, an attempting to carry out a terrorist at- Dustin Walsh: (313) 446-6042 spoke on condition of anonymity. U.S. was $56,433, according to the encyclopedia published in 2013 on tack in the U.S. between 1975 to 2015 Twitter: @dustinpwalsh “It’s a bad situation; I’m so sad for 2010 U.S. Census, compared with all the economic history of the group. all the families stuck waiting in plac- households in the U.S. at $51,914. es like Turkey or Jordan or Lebanon,” Iraqi and Yemeni households have Filling workforce gaps said Zadoyan, 37, who immigrated to the lowest median incomes at the U.S. after waiting nearly two years $32,075 and $34,677, respectively. Locally, the resettlement of refu- in Turkey for refugee status. “I’m Syrians, who saw the strongest re- gees and other immigrants is an im- worried about the future for them. strictions under the executive order, portant stopgap in our aging work- ey are waiting and suering, which have a U.S. median household in- force — with as many as 10,000 baby is bad, because we have jobs waiting come of more than $65,000, accord- boomers retiring each day. A Fee-Only Wealth Management Group for them, so they can start a new life ing to census data, compared with Michigan’s labor force hovered at away from the violence.” just over $48,000 for Michigan’s me- about 5 million before the Great Re- For executives, the order expands dian household income and a nearly cession and has since remained beyond a moral argument and sends $59,000 median household income stagnant at just more than 4.9 mil- a signal to foreign nationals that the for Southeast Michigan families. lion (roughly 3 million in Southeast Michigan’s #1 Financial Advisor* U.S., including Southeast Michigan, Michigan admitted 1,374 refugees Michigan). Unemployment remains is not interested in their talents. from Syria, 1,119 from Iraq, 255 from at pre-recession lows at 5 percent. “We hire talent, not addresses. We Somalia, 55 from Sudan, nine from In Wayne, Macomb and Oakland look for skills, education and train- Iran and three from Yemen in scal counties alone, online job postings in- ing; we have people of all dierent year 2016, according to the U.S. State creased nearly 44 percent since be- Charles C. Zhang types from all over the world,” said Department. tween the end of 2014 to the end of ® Dan Coker, president and CEO of And the inux of immigrants, par- 2016 to more than 112,300, according CFP , MBA, MSFS, ChFC, CLU Managing Partner Gentherm Inc., a Northville-based ticularly refugees from Syria, to the to data from the Workforce Intelligence manufacturer of thermal manage- other regions like the European Network for Southeast Michigan.  ment systems. “We have to make Union has not come without cost. More people are leaving the work- Charles has been ranked in the top sure we protect our people and con- e International Monetary Fund es- force than entering, and more jobs 10 on Barron’s list of Top 100 duct a global business. ings like timated that refugee resettlement are opening as a result. Independent Financial Advisors for 2015 and 2016, and is currently this are not conducive to that goal.” would boost public expenditures Social Security is operating on a the highest ranking fee-only Trump issued the order — which roughly 0.19 percent of gross domes- $32 trillion shortfall, and boosting NAPFA-Registered Financial halts travel from nationals from the tic product, adding to the public debt the workforce is one way to ensure Advisor on the list.** seven nations for at least 90 days, and increasing unemployment in enough tax revenue enters the pro- stops refugee resettlement for at 2016. But the inux was also expected gram to pay out the booming num- least 120 days and bans the resettle- to boost output by 0.1 percent when ber of retirees, Bleakley said. ment of Syrian refugees indenitely the immigrants join the workforce. “Our native population is not We Uphold a Fiduciary Standard — in the name of safety, aimed at “It’s easy to see the possible short- growing, yet our institutions operate keeping out potential terrorists. He term eects,” said Charles Ballard, on a pay-it-forward aspect, such as 101 West Big Beaver Road plans to beef up the nation’s vetting an economist at Michigan State Uni- Social Security,” Bleakley said. “ ese process for U.S. visas issued to na- versity. “Dropping immigrants into a institutions rely on having large 14th Floor tionals of the aected countries. labor market can displace jobs or working-age populations to support Troy, MI 48084 But the White House must strike a even depress wages, but the long- the elderly transfer payments. Migra- dicult balance between keeping run eects are close to zero.” tion to the U.S. has helped that be- (248) 687-1258 or (888) 777-0126 the country safe without harming come less burdensome.” businesses’ ability to compete on a Economic benets global scale. Fears of more to come e immediate economic impact Cities across the U.S., however, www.zhangnancial.com of this order in particular is likely to have found success in resettling im- Businesses and institutions are be minimal because of the limited migrant and refugee populations — also bracing for the potential of three Assets under custody of LPL Financial and TD Ameritrade. number of immigrants and refugees economically. more executive orders focused on the U.S. accepts from those coun- Cleveland welcomed 4,518 refu- immigration, which were leaked to *As reported in Barron’s March 5, 2016. Rankings based on assets under management, tries, according to experts. But if big- gees from Bhutan, Ukraine, Burma the media last week. revenue generated for the advisors’ Šrms, quality of practices and other factors. ger changes are in the ong for visa and Somalia between 2000 and 2012. ose orders, not yet veried, in- **As reported in Barron’s August 22, 2015 and August 27, 2016. Based on assets under management, quality of practices, revenue that advisors generate for their programs that businesses depend Volunteer agencies (commonly clude a total review of the work visa firms, and other factors. For fee-only status see NAPFA.org. on, that could change. referred to as “volags”) and cities program and the entrepreneur parole “In terms of the economic hit spent $4.8 million on refugee ser- program, which temporarily allows Minimum Investment Requirement: $500,000 in Michigan/$1,000,000 outside of Michigan. from this (executive order), it’s prob- vices in 2012, according to an eco- foreign-funded entrepreneurs into 20 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017

Fishbeck, Thompson, Carr & Huber engineers | scientists | architects | constructors

GROUNDED IN COMMUNITY

KIRK PINHO/CRAIN’S DETROIT BUSINESS Dan Gilbert’s involvement in a series of bills led to speculation that the incentive could help a number of his proposed projects, such as the redevelopment of the former J.L. Hudson’s department store site on Woodward Avenue.

same time, we need to make it clear BILLS About the bills that Detroit is not the only city that FROM PAGE 3 is going to benet from this legisla- The Michigan Senate plans to Michigan cities, but Gilbert’s star tion. And as part of that, we are at- reintroduce a package of bills to power in the state’s largest city made tempting to prove to the people of create what is being called a him the public face of the legislation. Michigan that, yes, the cities in your “transformational” brown­eld e Saginaw-area senator who community, in your region, are go- incentive. The bills failed to make it likely again will be the lead sponsor ing to benet as well.”

OM out of the last legislative session of the bills said Gilbert and his team In addition to Van Dyke Horn, MI that ended in December. The ­nal haven’t been asked to step aside. rive plans to hire Lansing-based version of the bills last term would Rather, developers and business public aairs communications rm have captured a portion of state leaders in other communities will be Marketing Resource Group to work FTCH.C income taxes for developments on asked to step up in an eort to battle on the incentive campaign. contaminated or blighted sites. misconceptions that the legislation e incentive would require de- would help Detroit at the expense of A news conference is planned for velopers to meet minimum invest- other cities. Tuesday in Lansing to unveil the ment thresholds in order to qualify “We were so focused on crafting bills. for the tax capture, which start at the right legislation that we took our $500 million in Detroit and go down eye o the messaging ball, which is from there based on a city’s popula- vitally important,” said Sen. Ken noted that projects in Kalamazoo, tion. Tax captures would be capped Horn, R-Frankenmuth, who added Jackson and Petoskey also might - at $40 million annually, and the that he bristled at hearing the “Gil- nally see life. state could approve no more than bert bills” moniker. “ is is going to have an echo ef- ve per year. Horn said he removed “It’s my responsibility as the (com- fect across the entire state,” he said a ve-year sunset clause in the mittee) chairman, I feel, to bust those then, “not just Detroit.” forthcoming version, which Gov. myths,” said Horn, who leads the State senators, chamber leaders Rick Snyder previously supported, Senate’s economic development and economic development profes- though Horn added that he would committee, where the bills likely will sionals from across Michigan are be open to negotiating the provi- land. “We’re going to talk about the scheduled to unveil the new bills at sion as the bills move through the vision that we have for Michigan an event Tuesday in Lansing. e Legislature. (and) the type of people that we’re bills, when reintroduced, will have When the bills were introduced attracting into Michigan. ey’re in- to restart the approval process. last September — they later died at vesting their personal incomes into Jared Fleisher, Quicken’s vice the end of the legislative term — these projects as residents of these president of government aairs, Gilbert’s involvement led to specu- projects, as tenants to the oce spac- said representatives from Gilbert’s lation that the incentive could help es and the retail spaces.” team will attend the Tuesday event a number of his proposed projects, alongside possibly more than a doz- from the redevelopment of the for- A personal appearance en other members of a coalition mer J.L. Hudson’s department store supporting the incentive. No one on on Woodward Avenue and a $1 bil- Gilbert, founder and chairman of Gilbert’s team, however, is listed as lion Major League Soccer stadium Quicken Loans Inc. and Detroit’s a speaker. Contrast that with last on the site of the stalled Wayne most well-known real estate devel- fall, when Matt Cullen, Rock Ven- County Consolidated Jail project on oper, initially operated mostly be- tures’ principal, led o the rst Gratiot Avenue. hind the scenes on the legislation round of committee hearings on the Horn last week cited a number of last year, which would have allowed bills. projects throughout the state as developers to capture a portion of e coalition, known as MI possibilities if the incentive were state income tax revenue generated rive, has grown to nearly 40 approved and developers were by new developments at browneld members, Fleisher said. e coali- found, including redevelopment of sites. tion is expected to release the ex- the Pontiac Silverdome and North- But by December, time was run- panded list Tuesday. Fleisher said land Mall in Southeld. ning out on the two-year legislative members live “from Monroe to “ ese are pent-up potential session in Lansing, and the ve-bill Marquette.” projects that will not happen but for package was days away from failing “We don’t want to downplay or some little spark that causes them to make it to the governor’s desk. hide the fact that Detroit is going to to take o,” he said. “ is is indeed a To save it, Gilbert testied before benet from this legislation. It will,” statewide program, and it’s not cen- a House committee that the propos- said Dan Austin, a senior account tered around any one particular al would close the nancial gap be- executive with Van Dyke Horn Pub- community.” tween construction costs and mar- lic Relations in Detroit and a Lindsay VanHulle: (517) 657-2204 ket rents in cities like Detroit, and spokesman for the coalition. “At the Twitter: @LindsayVanHulle CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 21

general range, such as in Single-A base- e post-recession recovery na. One of his top aides explained that TEAMS ball, from $15,000 to $75,000 a season. means a minor league team at Little minor league teams help brand build FROM PAGE 3 “With the major league teams, it’s Caesars Arena is much more likely for all parts of Gilbert’s holdings, and its management could realistical- going to get close to six gures just to than a few years ago. which also include casinos and a race www.crainsdetroit.com ly consider more teams in the build- start out,” he said. “It’s always possible,” Wilson said. track. Editor-in-Chief Keith E. Crain ing, said Tom Wilson, president of Among the major corporate spon- A third team in the new arena will “ey really enable us to engage Executive Vice President KC Crain Olympia Entertainment. Olympia will sorship buyers so far at the arena are come down to economics, and the de- with a wide and diverse fan base, and Publisher/Editor Ron Fournier, (313) 446-1674 or handle scheduling at the new arena. Little Caesars Pizza, Meijer Inc., St. Jo- cisions will drive what advertising op- helps us cross-promote,” said Len Ko- [email protected] Group Publisher Mary Kramer, (313) 446-0399 For a couple of years, all attention seph Mercy Health System, Michigan portunities are available to businesses. moroski, CEO of the Cavaliers and or [email protected] will be on the complex task of moving First Credit Union and Comerica For Olympia, it’s an opportunity Quicken Loans Arena. Managing Editor Michael Lee, (313) 446-1630 two major league franchises into a Bank. Financial terms of their deals cost, said Andrew Zimbalist, professor e minor league teams — the Lake or [email protected] Managing Editor/Custom and Special Projects brand-new 20,000-seat building, and with Olympia have not been disclosed. of economics at Smith College and au- Erie Monsters of the American Hockey Kristin Bull, (313) 446-1608 or [email protected] scheduling concerts and other events e barrier to entry in corporate thor of several sports nance books. League and the Cleveland Gladiators Product Manager/Marketing Kim Winkler (313) jockeying to use the state-of-the-art sports marketing has plunged be- “What would you put there that of the Arena Football League — serve 446-6764 or [email protected] facility, Wilson said. cause teams and venues are much night if there isn’t a game?” he said. to allow families and sponsors to expe- Deputy Product Manager/Digital Carlos Portocarrero (313) 446-6056 or [email protected] “Our focus has been so much on more sophisticated with deals, Dietz “Can (Olympia) bring in a rock con- rience the building at a lower price Membership Director Nancy Hanus, (313) 446-1621 or getting this thing built and making it said, and the advent of social media cert or Ice Capades or rodeo show?” point than Cavs games, Komoroski [email protected] magni cent” for the Red Wings and has meant companies can craft other said. News Editor Beth Reeber Valone, (313) 446-5875 or [email protected] Pistons, Wilson said. ways to link themselves with teams Ancient art of scheduling “Each event oers a touch point Design and Copy Editor Beth Jachman, (313) 446-0356 But leasing the arena to minor beyond traditional signage. where we can engage with people,” he or [email protected] league teams — or the owners of the Promotions using social media ex- Filling the event calendar won’t be a said. Research and Data Editor Sonya Hill, (313) 446-0402 or [email protected] Red Wings and Pistons launching ad- pose a brand to more people than just challenge for Olympia as promoters He declined to speci cally say if the Newsroom (313) 446-0329, FAX (313) 446-1687, ditional teams themselves — could fans at a game, he said. jockey to get their shows in the new are- minor league teams are pro table. e TIP LINE (313) 446-6766 happen, he said. “You can get involved in social na, but picking the best mix of events Gladiators averaged 11,046 per game, “It’s always possible. Some of those platforms but not arena signage,” Di- becomes more complex as you add and the Monsters drew 8,438 per con- REPORTERS Tyler Cli­ord, breaking news. (313) 446-1612 or leagues have called; we’ve had feelers etz said. “Each team has all their sports teams, industry insiders say. test. tcli˜[email protected] from the Arena Football League and la- Twitter followers and Facebook folks.” “It is a battle for available dates,” It’s done elsewhere, too: Eight of the Annalise Frank, breaking news. (313) 446-0416 or crosse,” Wilson said. “So many of those Signage has evolved, too: Little Cae- said Haynes Hendrickson, president 10 arenas currently shared by NBA [email protected] leagues struggle for an identity; they’re of Haddon eld, N.J.-based sports and NHL teams have another pro or Jay Greene, senior reporter Covers health care. sars Arena will be equipped with plen- (313) 446-0325 or [email protected] looking for a big city or a new arena.” ty of digital messaging boards that in- consultants Turnkey Sports & Enter- college team that uses the venue for its Chad Livengood Covers Detroit rising. (313) 446-1654 or Any new team would use the arena creases available inventory for sale. tainment Inc. “A non-major league home game. [email protected] when it’s least busy, which means af- But that raises new questions for team is going to want weekend dates Kurt Nagl Breaking news. (313) 446-0337 or knagl@ crain.com ter the hockey and basketball seasons advertisers of all sizes: “Sponsors to maximize their attendance. ose A di erent type of team Kirk Pinho Covers real estate. (313) 446-0412 or end. e Pistons and Red Wings each have to sort through that. Are 5 min- are valuable dates to commit to a [email protected] play 41 regular-season home games utes of LED advertising enough to non-major league team when you An alternative option to a tradi- Bill Shea, enterprise editor Covers the business of sports. (313) 446-1626 or [email protected] from October to April. drive sales or build brand aware- could bring in more lucrative events tional sports team moving into the Lindsay VanHulle, Lansing reporter. (517) 657-2204 “It most likely would have to be a ness?” Dietz said. such as concerts and family shows.” arena could be an e-sports team, said or [email protected] summer-based thing like the WNBA Olympia said businesses of all siz- It’s widely believed that the Palace Victor Chiasson, assistant professor Dustin Walsh, senior reporter Covers economic issues. (313) 446-6042 or [email protected] or arena football,” Wilson said. es can aord deals now. of Auburn Hills will close, and possibly of sport management at Eastern Sherri Welch, senior reporter Covers nonprošts and Another challenge is tting alterna- “It’s true that there are dierent be demolished, after the Pistons leave, Michigan University. philanthropy. (313) 446-1694 or [email protected] tive sports teams around major con- price points for dierent products — and Joe Louis Arena already is sched- “Based on where the new invest- certs, which are quite lucrative for are- much like a ticket for one popular, uled for the wrecking ball after the Red ments in non-major league teams are ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 nas. established entertainer might cost Wings exit. at squeezes the market going, an e-sports franchise using Lit- Director of Sales Lisa Rudy “You can’t risk losing a major con- more than a smaller, lesser known for entertainment acts in the Detroit tle Caesars Arena may have the best Senior Account Manager Katie Sullivan cert for a minor league sport,” Wilson act,” Wilson said. “at said, we have market, which means more competi- chance of succeeding and also gives Advertising Sales Christine Galasso, Gerry Golinske, said. It’s done elsewhere, however, entry points for all businesses.” tion among event promoters to get the millennial audience another rea- Diane Owen ClassiŽed Sales Manager Angela Schutte, such as the Staples Center in Los An- into Little Caesars Arena — and reduc- son to visit the new facility,” he said. (313) 446-6051 geles being home to four teams and a Rich minor league history es in-venue marketing opportunities. “e new Golden 1 Center in Sacra- ClassiŽed Sales Lynn Calcaterra, (313) 446-6086 full concert schedule. “Demolishing both the Joe and the mento and Madison Square Garden Events Manager Kacey Anderson Senior Art Director Sylvia Kolaski Ultimately, what adding a minor After a couple of years getting Lit- Palace will reduce the number of pos- have hosted events.” Special Projects Coordinator Keenan Covington league team would mean is that tle Caesars Arena up and running, sible venue days in Detroit; one arena E-sports tournaments at arenas Sales Support Suzanne Janik sports marketing opportunities Olympia will begin to seriously in place of two,” said Rodney Fort, a have drawn thousands of fans who Media Services Director Geof Innis would be available to businesses un- weigh its options on another sports University of Michigan sports eco- watch uniformed teams playing video Media Services Manager Hussein Abdallah able aord to link their brand to the tenant. Adding a third team would nomics professor. “at pretty much games in competition for cash prizes, CUSTOMER SERVICE major league teams. represent a rebirth of arena-based puts (Olympia) in the driver’s seat.” with the game action displayed on Main Number: Call (877) 824-9374 Sports insiders say Olympia is minor league sports. large video screens. e owners of the or [email protected] Subscriptions $59 one year, $98 two years. Out of state, keenly aware that it can generate ad- Alternatives to the major league De- Making it work Sacramento Kings recently launched $79 one year, $138 for two years. Outside U.S.A., add $48 ditional revenue from a third team. troit sports teams used to abound. e NRG eSports, which hosts competitive per year to out-of-state rate for surface mail. Call (313) “As you see with tickets and spon- Detroit Drive arena football game aver- ere are examples of major video game tournaments. 446-0450 or (877) 824-9374. sorships pricing, it won’t be available aged more than 14,000 fans per game at league teams sharing their arenas E-sports are on Olympia’s radar. Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at to everybody to start, so they’ll be Joe Louis Arena during its 1988-92 run. with minor league clubs. “We’ve looked at it a little, but not [email protected] looking for ways to put in other teams e Detroit Vipers ice hockey team and Detroit real estate investor Dan Gil- immersed ourselves in it yet,” Wilson To Žnd a date a story was published (313) 446-0406 and events,” said Mike Dietz, presi- Detroit Shock women’s basketball bert has an entertainment empire in said. “It’s happening all over the or e-mail [email protected] dent and director of sports marketing team were popular, if not pro table, at Cleveland that includes the NBA de- country.” Crain’s Detroit Business is published by rm Dietz Sports & Entertainment in the Palace of Auburn Hills. fending champion Cavaliers and two Bill Shea: (313) 446-1626 Crain Communications Inc. Farmington Hills. He’s had clients e recession made such teams — minor league clubs that share its are- Twitter: @Bill_Shea19 Chairman Keith E. Crain President Rance Crain swing sponsorship deals with the new often barely pro table, and usually in Treasurer Mary Kay Crain arena but declined to name them. the red — economically unfeasible, Senior Executive Vice President William A. Morrow “I think eventually they’ll have a Wilson said, even if they were drawing INDEX TO COMPANIES Executive Vice President/Director of Strategic third tenant in some sport,” Dietz said. thousands of fans a game. Owners Operations Chris Crain These companies have signicant mention in this week’s Crain’s Detroit Business: Executive Vice President/Director of Corporate Modern technology means that wanted to ensure their dollars were Operations KC Crain 1st Choice Physical Therapy LLC 15 MBG Marketing 12 the days of companies paying to have being spent on their major league Vice President/Production & Manufacturing their names axed to a wall or score- teams, and marketers followed suit. Atwater Brewery 12 Michigan Department of Agriculture 11 Dave Kamis Chief Financial O”cer Bob Recchia board have evolved. Wilson ran Palace Sports and Enter- Avomeen LLC 13, 14 Michigan Education Excellence Foundation 4 Chief Information O”cer Anthony DiPonio “at arena’s been built so that tainment during the heyday of local G.D. Crain Jr. Founder (1885-1973) Blue Care Network 5 NewTree Fruit 8 most of the signage is digital, not stat- minor league sports. Mrs. G.D. Crain Jr. Chairman (1911-1996) Catholic Charities of Southeast Michigan 1 Nirvana Tea 11 Editorial & Business O”ces ic, so it can be changed easily,” he ere are thriving minor league 1155 Gratiot Ave., Detroit MI 48207-2732; said. “ey can make it look and feel teams elsewhere in metro Detroit to- Cherry Central Cooperative 11 Northern Michigan Angels LLC 8 (313) 446-6000 so their sponsors feel they’re getting day, such as the developmental Unit- Cherry Marketing Institute 12 Old World Style Almonds 11 the attention that they need.” ed Shore Professional Baseball League Cable address: TWX 248-221-5122 AUTNEW DET Ford Building 3 Olympia Entertainment 21 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly Olympia hasn’t disclosed its cor- in Utica and the semi-pro Detroit City by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI porate sponsorship pricing other FC drawing more than 5,000 fans a George Johnson & Co. 13, 15 Shoreline Fruit LLC 11 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing o¦ces. POSTMASTER: Send address changes to CRAIN’S than suites, all of which sold out in game in Hamtramck. But those are Graceland Fruit 11 Silikids 9 DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, 2015 at a cost of $300,000 a year under outdoor sports, and the age of alterna- Health Alliance Plan of Michigan 5 Sterling Group 3 MI 48207-9732. GST # 136760444. Printed in U.S.A. seven- to 10-year leases. tives to the arena-based major league Contents copyright 2017 by Crain Communications Inc. All rights Dietz estimated that basic minor teams ended locally when the late Wil- Jewish Family Services of Washtenaw Co. 1 Samaritas 1 reserved. Reproduction or use of editorial content in any manner without permission is prohibited. league corporate sponsorship deals in liam Davidson sold the Shock in 2009. M1 Thrive 20 USCRI Detroit 1 22 CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 Business-oriented style has marked Duggan’s tenure as mayor By Chad Livengood e mayor also recruited three owed $941,955 in corporate taxes issued by the PLA. businesses and residents. [email protected] people with Detroit roots to come and penalties based on prots the Since Duggan took oce, more “I think the Green Light program is and Kirk Pinho back to Michigan: Health Director downtown rm made from work than 10,700 blighted homes have a great example of holistically ad- [email protected] Abdul El-Sayed, Housing and Revi- within the city limits. at ruling, been torn down in the city and about dressing community needs,” Baruah Mayor Mike Duggan’s CEO-style talization Director James Arthur which Honigman is appealing, 2,500 more are in the pipeline. But said. approach to governing Detroit has Jemison and Jed Howbert, executive prompted an unnamed company to Detroit’s blight removal program has been evident since he took the reins director of the mayor's jobs and come forward and voluntarily pay been under scrutiny of city and state J Schools, regional transit, auto insur- at City Hall following a long period of economy team. $1.2 million in back taxes, Duggan auditors as well as federal investiga- ance: Duggan’s victories in Detroit’s political and economic turmoil. e mayor kept Orr’s chief nan- spokesman John Roach said. tors over escalating costs. A state re- revitalization come as he has suf- e former CEO of the Detroit cial ocer, John Hill, who came to view found Detroit’s blight program fered some political losses outside Medical Center, who was the busi- Detroit from Washington, D.C., was wrongly reimbursed for $7.3 mil- the city limits. ness community’s favorite in the where he ran a civic improvement “I think there’s a lion from federal blight-removal In 2015, Duggan became heavily 2013 mayoral election, launched his organization and the capital city’s - mindset now funds. e Detroit Land Bank agreed involved in an eort to turn around re-election bid last week. nancial control board. to pay back $1.3 million, but the rest Detroit’s long-failing public schools. Detroit emerged from bankruptcy Sonya Mays, CEO of Develop De- among city remains in dispute. He backed a plan crafted by busi- in December 2014, and Duggan is troit, a nonprot housing developer, government of ness, philanthropic, civic and reli- credited with starting to change the credits Duggan with putting in place ‘How can I help?’ J Economic development: Several gious leaders to relieve Detroit Pub- culture of doing business in Detroit a “high-capacity, very technically ca- major companies, ranging from Adi- lic Schools of $617 million in debt and setting a new tone for the city’s pable” team at City Hall that has That’s not ent Ltd. to Sakthi Automotive Group and create a citywide commission to revitalization. made it easier for real estate devel- everywhere, but it’s USA to Flex-N-Gate to Linc, have in- decide where schools are located in “I think there’s a mindset now opers to pursue projects in the city. getting to be vested hundreds of millions of dol- the city and by whom. among city government of ‘How can “ e mayor’s very talented,” Mays lars in the city in new manufacturing But the Republican-controlled I help?’ at’s not everywhere, but it’s said. “But the mayor has to delegate everywhere. And facilities or relocations of corporate Legislature rejected the proposed getting to be everywhere. And that’s a fair bit. And he’s got some really that’s driven from headquarters. In 2014, Duggan Detroit Education Commission, sid- driven from the mayor’s oce,” said good people in place.” the mayor’s oce.” helped bring the American Light- ing with charter school advocates Bill Nowling, who was former Detroit weight and Modern Metals Manu- that the panel would give the mayor Emergency Manager Kevyn Orr's J Tax collections: Since Detroit exit- Bill Nowling, former facturing Innovation Institute to too much power to favor DPS over communications director and now ed bankruptcy, Duggan has empha- communications director Corktown, a $148 million invest- charter schools. runs the Detroit oce of Finn Part- sized the need to go after tax revenue ment. Duggan’s eorts to get the Legis- ners, a global public relations rm. the city is legally owed from resi- J Motor City Match: A Detroit Eco- lature to allow insurers to sell a low- Here’s a progress report on how dents, nonresidents who work in the nomic Growth Corp. program that J Project Green Light: A public safety er-cost auto insurance in Detroit Duggan’s agenda has impacted busi- city, and businesses. connects aspiring business owners eort geared toward businesses like without the unlimited lifetime medi- ness in Detroit: During Detroit’s bankruptcy, just with technical support, real estate gas stations, liquor stores and others, cal benets died in last year’s legisla- 68 percent of property owners were locations and grant funding to lever- Duggan and Police Chief James Craig tive session. J Attracting talent to City Hall: Dug- paying their tax bills. After a citywide age loans and private investments, it announced last week that the 100th Detroit’s highest-in-the-nation gan has lled some top city leader- reassessment that resulted in the deploys $500,000 in funding each business started participating in the auto insurance rates are seen as a ship roles with hires from outside of taxable value of half of the residen- quarter to small businesses. program. It involves business install- major deterrent to attracting new Detroit. tial properties being reduced, the ing high-denition security cameras residents to the city, one of Duggan’s Louisville, Ky., native Beth Niblock tax-paying compliance has risen to J New streetlights, fewer blighted whose feeds are patched directly to biggest goals to stem decades of left her hometown to become De- 82 percent. “It turns out, when peo- buildings: In a $185 million eort ap- the Detroit Police Department. Dug- population loss and neighborhood troit’s chief information ocer. City ple feel they’re being assessed fairly, proved by the state Legislature in gan and Craig said crime at the par- abandonment. Planning Director Maurice Cox came they pay their taxes,” Duggan said. 2012 and the city council in 2013, be- ticipating businesses has decreased, Duggan and other regional lead- to Detroit from New Orleans, where e Duggan administration also fore Duggan took oce Jan. 1, 2014, with a nearly 40 percent drop for the ers also were handed a defeat in the he was associate dean for communi- has stepped up eorts to force busi- the Public Lighting Authority in the original eight participants and a November election on a four-county ty engagement at the Tulane Univer- nesses and nonresident workers to last three years has installed 65,000 nearly 20 percent drop at others. millage to fund the Regional Transit sity School of Architecture. pay the city’s income tax. streetlights. Not only was a poorly Sandy Baruah, president and CEO Authority. Duggan recently hired veteran In December, a Michigan Tax Tri- functioning streetlight system a seri- of the Detroit Regional Chamber, Chad Livengood: (313) 446-1654 transportation and engineering ex- bunal judge sided with Detroit in ous safety issue for residents, it also said Duggan’s focus on neighbor- Twitter: @ChadLivengood ecutive Mark de la Vergne of Chicago ruling that the Honigman Miller was detrimental to city businesses. hood crime, xing bus routes and Kirk Pinho: (313) 446-0412 to be the city's rst mobility chief. Schwartz and Cohn LLP law rm e project was paid for with bonds getting streets relit has been good for Twitter: @kirkpinhoCDB

I asked him what he hoped De- in the early days. someone at the land bank autho- said. “I was born here. I left the best DUGGAN troiters would say about their city in He ran on a platform of scal san- rized shifting money to camouage job I ever had at the DMC only be- FROM PAGE 1 four years if he wins a second term. ity, safer streets and economic de- the fact that the program had ex- cause I felt like I could help this city Duggan concedes this will be a “I want people in the neighborhoods velopment. His slogan: “Every ceeded federal guidelines that go in the right direction. My motiva- hard promise to keep, requiring dra- to be saying this is a better place to neighborhood has a future.” capped demolition costs at $25,000 tion is to have an impact on the city.” matic progress in areas of chronic raise a family,” he said. Four years later, the future for per home, the federal government I believe him. He’s focused on De- failure: public education, public Duggan, 58, is a former prosecu- most Detroit neighborhoods re- suspended the program. troit. safety and joblessness. tor and businessman who became mains uncertain. Using text messages obtained But after watching Barack Obama Duggan can point to small but the rst white mayor of majori- And yet Duggan is the clear through Freedom of Information Act and Donald Trump exploit voters’ positive progress in reducing crime, ty-black Detroit since Roman front-runner, in part because he un- requests, Crain’s reported last year desire for change, I won’t rule any- growing the police force and nurtur- Gribbs’ administration in the early der-promised and over-delivered. that Duggan learned of the suspen- thing out. In 2008, Obama was a ju- ing entrepreneurship, but Detroit’s 1970s, when Detroit was not yet a He said his administration would be sion in August. But City Council nior senator who had never been a network of public and private majority African-American city. ethical and competent, and he pro- learned of the suspension only in chief executive. In 2016, Trump was schools is a mess — and he seems to He had moved from Livonia to the duced modest, measurable results, October. a brand-building businessman with acknowledge the limitations of a city to run for mayor, surviving a bal- including streetlight replacement; Duggan should not have kept the no government experience. mayor’s authority. lot challenge that forced him to win faster police, re and ambulance re- federal hand-slapping a secret — not ey had not run a city. ey had “I’ve only started,” he told me. “I the Democratic primary as a write-in sponse times; and the incremental from the public or the City Council. not reformed a city. think we have a good school board. candidate. expansion of bus services. Still, Duggan heads into re-elec- President Duggan? Stranger We have a superintendent running e victory made Duggan a na- Another advantage: Duggan is a tion with the reputation he brought things have happened. the school system who is an educa- tional political gure, a star among formidable fund-raiser with deep to Detroit. He is Mr. Fix It, an execu- tor — for the rst time in eight years. Democrats who had watched their ties to metro Detroit’s business com- tive with a record of turning around BANKRUPTCIES I think they need an opportunity to bench depleted under President munity. large, ailing organizations as deputy prove what they can do. When you Obama. He had deed the head- He is likely to scare away most se- Wayne County executive, head of the e following businesses led for start putting teaching rst,” a school winds of American politics that stoke rious competition. Detroit Medical Center, and now bankruptcy protection in U.S. Bank- system attracts quality teachers and racial, demographic and ideological Still, Duggan will run with a cloud mayor of an iconic city on the move. ruptcy Court in Detroit Jan 27-Feb 2. philanthropy support, he said. polarization. over his head. e federal govern- His resume, if padded with four Chapter 7 involves total liquidation. Duggan criticized Lansing’s role Duggan did it the old-fashioned ment is investigating how the Detroit more years of progress, would put J En’ Pointe Dancewear & Accesso- in stiing public-charter school re- way: showing up at people’s door- Land Bank Authority spent (or mis- the governorship and even presi- ries LLC, 1139 W 14 Mile Road, form last year, and he called threats steps and asking for their votes. By spent) $250 million from the Trou- dency within reach. Clawson, voluntary Chapter 7. As- to close 24 underperforming Detroit Election Day, he had attended 250 bled Asset Relief Program to ght Duggan laughed when I told him sets: $244,376.61; liabilities: public schools “a manufactured cri- house parties across Detroit, with blight. that. $280,090.79. s i s .” gatherings as small as three people When a recent audit found that “I try to reside on planet Earth,” he Tyler Cli„ord CRAIN’S DETROIT BUSINESS // FEBRUARY 6, 2017 23 THE WEEK ON THE WEB RUMBLINGS JAN. 28-FEB. 3

Microso to move use development plan Gilbert and Detroit Digits Gores unveiled last April. tech center, 165 jobs J Work started in downtown De- to downtown Detroit A numbers-focused look at last troit on the Shinola Hotel, a joint week’s headlines: venture of Shinola/Detroit LLC and icrosoft Corp. and Bed- Bedrock LLC that’s expected to rock LLC announced Fri- $44 million open in 2018. day that the technology The preliminary general fund J Dearborn nonpro t Leaders Ad- Mcompany will move its Michigan operating budget surplus for vancing and Helping Communities CRAIN’S DETROIT BUSINESS Technology Center from South eld Wayne County for scal 2015-16, said it would turn down $500,000 in In a letter sent to season ticket holders, Detroit Lions President Rod Wood wrote to downtown Detroit early next according to the state federal funds for youth development that about $100 million will be invested in “major renovations” to Ford Field. year. Microsoft will take more than Department of Management and and public health programs because 40,000 square feet in the Dan Gil- Budget. The county said it of the “current political climate” re- bert-owned One Campus Martius expects a surplus for the second garding President Trump’s actions Lions to spend $100M on building, a deal reported by Crain’s straight year aer years of against the Muslim and Arab com- last month. At least 165 Microsoft nancial reverses. munity, AP reported. Ford Field upgrades in 2017 employees will move to One Cam- J e Michigan Business and Pro- In a letter sent to the season e $100 million in upgrades pus Martius. $48 million fessional Association inducted sev- ticket holder base, and posted by a announced this week come just The investment by Canadian en members into the Michigan Busi- fan on Twitter, Detroit Lions Presi- days after the team disclosed its COMPANY NEWS supplier Magna International Inc. ness Women Hall of Fame. Honored dent Rod Wood wrote that team latest rebranding eort, which in- J One month after Detroit Medical in its new headquarters for its in a ceremony in Detroit were Liza- owner Martha Firestone Ford and cludes a tweaked version of the Center received a clean bill of health Magna Seating division in Novi. beth Ardisana, ASG Renaissance; her family will invest approximate- team logo that removes the black on violations in infection control of Magna’s U.S. operations are Birgit Klohs, e Right Place Inc.; ly $100 million in “major renova- outline, and new uniforms that will surgical instruments, the Centers for based in Troy. Mindi Fynke, Employee Health In- tions” to Ford Field. be unveiled April 13. e team has Medicare and Medicaid Services surance Management Inc.; Cynthia Few details were provided, but said the base colors of Honolulu and the Michigan Department of Li- $85 million Pasky, Strategic Stang Solutions; the letter did say the video boards, blue and silver will remain. censing and Regulatory Aairs The planned joint investment by Glenda Price, Marygrove College; which are original to the 64,500- Recent projects by the Lions in- launched a new investigation at General Motors Co. and Honda Andra Rush, Detroit Manufacturing seat, $500 million stadium’s 2002 clude $2 million for new lighting, DMC. Motor Co. to build hydrogen fuel Systems; and Nancy Schlichting, opening, will be replaced. ey’ve $5 million on roof repairs, a $1.5 J Beaumont Health kicked o an cell stacks for next-generation Henry Ford Health System. long been considered undersized million retail shop renovation, advertising campaign, developed by green vehicles at a factory in J e University of Detroit Mercy by modern NFL standards. quadrupled stadium-wide Wi-Fi Detroit-based agency Doner, that Brownstown Township, received $4.5 million in endow- It’s expected the details of the service, metal detectors, cheer- represents the rst major branding Automotive News reported. ments from two alumni. Bernard new investments will be revealed leaders, painted blue end zones, eort since the 2014 merger that cre- Schla, an aeronautical engineer Feb. 15 when the team hosts a pri- and new game-day fan activities. ated the South eld-based eight-hos- who graduated in 1944 from the for- vate meeting for suite holders, some “We are committed to continu- pital system. A new 30-second TV two weeks after the company re- mer University of Detroit and died in premium seat holders and corpo- ously enhancing your experience spot was to air locally during half- ceived a $600,000 grant from the 2015, left $3 million to establish a rate sponsors. Wood’s letter also and always looking for ways to im- time of Sunday’s Super Bowl tele- state to develop a new headquarters scholarship for engineering stu- promised a new sound system and prove,” Wood wrote in the season cast. in Novi. dents. Jane Nugent, a 1948 graduate other undisclosed improvements. ticket holder letter. J Eau Claire, Wis.-based home im- J Novi-based automotive electron- who became a Detroit Edison Co. provement retail chain Menard Inc. ics supplier Stoneridge Inc. ac- administrator, donated $1.5 million is expected to break ground on a new quired Orlaco Products BV, a to UDM to help women studying RenCen’s Coach Insignia restaurant to close store in Taylor this spring, with con- Netherlands-based supplier of business. Coach Insignia will close its signia’s place, it said in a statement. struction expected to nish in 2018, camera-based vision systems for J e Oakland County Football doors 72 oors up in Detroit’s Re- Epicurean will oer Insignia’s Taylor Mayor Rick Sollars said. vehicles, for 75 million euros, or Club announced it will move from naissance Center on Feb. 18 after 13 60-some sta the option to stay J Detroit-based Corporate Elevator more than $80 million. Rochester to Royal Oak for its second years oering classic American cui- with the company, including an of- Consultants Inc. was sold by owner J City Connect Detroit and the De- season of semi-pro soccer. sine and a wide-spanning view of fer to move to a new restaurant, No- Mike Rowley to a group including his troit Creative Corridor Center are J Work began on the state’s $200 the city and neighboring Windsor. mad Grill in South eld, Djordjevic brother, Rodger Rowley, and Geor- nalists for e Atlantic’s national million, two-year closure of I-75 e restaurant’s lease expires Feb. said. Nomad Grill’s soft opening gia-based yssenkrupp Elevator Renewal Awards, an online competi- southbound from Detroit to Downri- 28, ending a 10-year term. It isn’t yet will be in the third week of March at America executive Trey Zackery that tion. e publication of Washington, ver. certain what restaurant or business the new Best Western Premiere ho- formed Corporate Elevator Asset D.C.-based Atlantic Media chose 25 J Allen Park was released from re- will replace the 23,000-square-foot tel at 26555 Telegraph Road. Management LLC. community-minded U.S. nonpro ts ceivership by the state of Michigan eatery atop the city’s tallest building. In 2004, restaurateur Matt Pren- J Kingfa Science and Technology to compete for ve $20,000 prizes following improvements in its - “A lease has an end date, so we’ve tice opened Coach Insignia, which (USA) Inc. plans to invest $60 mil- from Allstate Insurance Co. Voting nances, AP reported. internally been talking and prepar- occupies the Ren Cen’s 71st and lion in expanding its Canton Town- runs until Feb. 17 at theatlantic.com/ J Comerica Bank’s Michigan Eco- ing for a worst-case scenario” for the 72nd oors. e restaurant replaced ship manufacturing operations, the renewal-awards. nomic Activity Index gained 1.3 per- past two years, said Eric Djordjevic, e Summit, which closed in 2000. Michigan Economic Development centage points in November to hit president of Detroit-based Epicure- Epicurean CEO Stanley Dickson Corp. announced. In other MEDC- OTHER NEWS 129.7. an Group, which owns Coach Insig- Jr., bought the Bingham Farms- based news, Auburn Hills-based J Billionaire businessmen and pro nia. “At this point, there’s not an op- based Matt Prentice Restaurant Automotive Lighting LLC plans to basketball owners Dan Gilbert and OBITUARIES portunity to negotiate a renewal.” Group in 2009. Also in 2009, Epicu- invest $35 million to convert its ex- Tom Gores formally submitted their J Jack Demmer, a longtime metro General Motors Co., owner of rean, then called Trowbridge haust component facility into an joint application to Major League Detroit auto dealer who founded the Renaissance Center, is looking Restaurant Group, bought GM’s exterior lighting production facility Soccer for an expansion team in De- Jack Demmer Ford and Jack Dem- for a restaurant to take Coach In- two-thirds share of Coach Insignia. in Independence Township, Valeo troit. A short description matches mer Automotive Group, died Jan. 31. North America Inc. seeks to invest the $1 billion stadium and mixed- He was 93. about $5 million in a low-speed test Former Crain’s editor joins Core Partners as VP track and supporting building in Structural steel Former Crain’s Detroit Business viously worked Auburn Hills, ABB Inc. plans to in- placement at the site Editor Jennette Smith Kotila has at e Times vest $9.1 million in new equipment of the future Little been hired as vice president of Herald in Port and expand robotic production in Caesars world marketing and communications Huron and e Auburn Hills, and Macomb Smoked headquarters in The for Bingham Farms-based real es- Macomb Daily Meats seeks to acquire a building District Detroit tate company Core Partners LLC. in Mount Cle- next to its Macomb Township pro- started on Jan. 31. Smith Kotila, 42, begins the newly mens. duction facility and spend $2.8 mil- The building is slated created position Wednesday. She Core Part- lion on packaging lines, production for completion in will focus on Core Partners' market- ners has about 2018. As of last week, and warehousing. ing, communications and client ser- Smith Kotila 130 employees J Yanfeng US Automotive Interiors steel has been placed vice, according to a news release. and manages plans to cut more than 300 jobs at fa- up to the fourth “oor Smith Kotila spent 18 years at about 10 million square feet of real cilities in Monroe beginning in April. at the front of the Crain's until leaving in December estate. It also provides construc- e layo notice comes less than ANNALISE FRANK/CRAIN’S DETROIT BUSINESS structure. as part of a reorganization. She pre- tion and brokerage services. •

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