His vision for DMC, St. Joseph Detroit’s skyline weigh worth of Dan Gilbert bundled care talks about new projects, Is Medicare pilot program legislation working for hospitals? and o ce It’s too early to tell, Page 3 space, Page 3
NOVEMBER 28 - DECEMBER 4, 2016
A history of moves Detroit’s four major sports teams don’t move o en. Here’s a look back Gores’ entry makes at the times they did and the spaces they played in: Detroit Lions 1934: The Lions move to Michigan from Portsmouth, Ohio, and play at University of Detroit Stadium (seating capacity 25,000) until 1937, with a one-season return in it three’s company 1940. 1938: Tiger Stadium (52,416), then Gores on both the Ilitch, Gilbert teams could portend more investments called Briggs Stadium, becomes the team’s new home, initially through 1939 and then continuously from 1941 pany said it was targeting a cap of By Kirk Pinho through 1974. and Tom Henderson $5.5 billion for its new fund. [email protected] In fact, it likely provides the impe- 1975: The Lions relocate to the [email protected] tus for even more investments in cavernous Pontiac Silverdome, right And suddenly there were three. downtown, such as in real estate (80,311). After more than ve years of one with Gilbert, said Arn Tellem, Gores’ 2002: Ford Field (65,000) opens downtown. billionaire, Dan Gilbert, and a bil- vice president of Palace Sports & En- Detroit Pistons lionaire family, the Ilitches, being tertainment. the dominant business and real es- Tellem said that more investment 1957: A er moving to Detroit from Fort Wayne, Ind., the Pistons play mainly in Olympia Stadium (15,000), with occasional tate forces in downtown Detroit, from Gores is possible after the De- games at the University of Detroit. troit Pistons owner Tom Gores has MLS stadium bid for the jail site o cially entered the picture with is resolved. He declined to 1961: The team begins a 17-year run at last week’s announcement he will specify what other real estate in- Cobo Arena (12,000). move his team back to the city after a vestments Gores and Gilbert 1978: The Pontiac Silverdome, which 28-year run in e Palace of Auburn might work on together. could seat more than 60,000 for basketball, Hills. And there has been talk about becomes the team’s home for 10 years. e move creates an interlocking more unspeci ed Gores proj- 1988: A er building it with $90 million of network of business interests, with ects in e District Detroit, the his own money, Pistons owner Bill Davidson Gores, a private equity billionaire, 50-block swath of downtown an- unveils the Palace of Auburn Hills (20,000). squarely in the middle of two camps chored by the new arena and PHOTOS BY LARRY PEPLIN Detroit Red Wings that have been viewed as rivals. spearheaded by the Ilitches. Tom Gores adds another pro sport to He sealed a deal with the Ilitches Michael Beauregard, senior part- 1926: The team makes its debut at the downtown Detroit landscape; he’ll the Border Cities Arena in Windsor to play the 2017-18 season in the ner at Detroit-based Huron Capital move his Detroit Pistons there from because no Detroit facilities are new Little Caesars Arena while , annually Detroit's most Auburn Hills next season. Partners LLC available. deeply entwined with Gilbert's own active private equity rm, also said seismic sports splash: a bet on a pro- Gores investment in Detroit. And his Gores’ move to downtown has trig- 1927: The Wings move into the posed new Major League Soccer background as a private equity pio- gered speculation that Platinum Eq- newly built Olympia Stadium (15,000). stadium on the site of the half-built neer means he’s always on the look- uity LLC, Gores’ private equity com- 1979: The new Joe Louis Arena Wayne County Consolidated Jail at out for a new deal. pany, makes its presence felt in (current hockey capacity: 20,027) hosts Gratiot Avenue and I-375. e relationships also may give Detroit. its rst Red Wings game on Dec. 27. Gores is bound to change the Gores, who lives primarily in Los An- “Obviously, there’s going to be a Detroit Tigers city’s leadership dynamic. geles, local partners with real estate lot of talk now of Platinum doing The team debuts in the American League before 10,000 fans in Bennett e swiftly developing relation- expertise. And he comes armed with business here,” he said. 1901: Park at Michigan and Trumbull avenues. The Tigers would play at that site for nearly ships hold the promise of more money to invest. In August, the com- e potential is high, said for- a century. mer Detroit Mayor Dave Bing. “He brings tremendous assets. 1912: Navin Field, named for Tigers owner © Entire contents copyright 2016 Frank Navin, is constructed at Michigan and by Crain Communications Inc. All rights reserved He is being very careful on what Trumbull, le . crainsdetroit.com Vol. 32 No 49 $2 a copy. $59 a year. his approach is going to be. I do believe he’d like to get on the en- 1938: Briggs Stadium becomes the tertainment, retail and develop- expanded facility’s new name, for then-owner ment side. A guy with deep pock- Walter Briggs. ets like that can do a lot of good,” 1961: Tiger Stadium becomes the nal Bing said. name of the site (capacity: 52,416). And a lot of that stems from rela-
NEWSPAPER 2000: Comerica Park (current capacity: 41,297) opens at 2100 Woodward Ave. tionships he has built on both sides. SEE GORES , PAGE 18 SOURCE: CRAIN’S RESEARCH; TIGER STADIUM PHOTO CREDIT WIKIMEDIA COMMONS; OTHER PHOTOS FROM CRAIN’S ARCHIVE 2 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016
INSIDE MICHIGAN BRIEFS BANKRUPTCIES 18 CALENDAR 14 State appeals injunction Jackson toy store to close Missouri-based industrial develop- at a White Pine Springs production CLASSIFIED ADS 15 over Flint water delivery next month aer 67 years ment rm acquire about 260 acres of well near Evart, MLive.com report- former General Motors property in ed. Connecticut-based Nestlé, which DEALS & DETAILS 14 e state led a notice of its intent A beloved toy shop is closing next Lansing, Lansing Township and Del- is spending $36 million to expand its KEITH CRAIN 6 to appeal a federal judge’s injunction month after 67 years in Jackson, but ta Township, MiBiz reported. RACER Ice Mountain bottling plant in Stan- MARY KRAMER 6 that water must be delivered to the its owner is thankful for the “smile Trust is a Livonia-based group that wood, wants to pump up to 576,000 homes of Flint residents — a require- stories” told by his employees about remediates former GM sites in mul- gallons per day from a well located OPINION 6 ment it claims would cost taxpayers kids and parents who have left happy tiple states. between two coldwater trout stream RUMBLINGS 19 $10.5 million monthly, MLive.com after visiting what became one of the J A judge dis- tributaries of the Muskegon River. WEEK ON THE WEB 19 reported. Attorneys for the Michigan nation’s largest independent toy missed a mis- Michigan Citizens for Water Conserva- Department of Treasury and Flint Re- stores. conduct-in-of- tion sued Nestlé in 2001 over poten- COMPANY INDEX: ceivership Transition Advisory Board After the closing of the Toy House ce charge tial damage to lakes, rivers and SEE PAGE 18 last week led the notice of appeal in & Baby Too store was announced last against ex-state streams that groundwater withdraw- U.S. District Court. week, Phil Wrzesinski, its president lawmaker Todd als would cause. e two sides family owns the adjacent Bombay U.S. District Judge David M. Law- and owner, told MLive.com the fond Courser, who reached a settlement agreement in Cuisine. son had ordered door-to-door water memories of providing playthings to quit o ce in a 2009, reducing Nestlé’s siphoning to J Grand Rapids Community College deliveries for Flint families unless city residents won’t fade. sex scandal last 218 gallons per minute from 400. named Bill Pink, its vice president the state can prove residents have “ e products have changed ... year, AP report- J Grand Valley State University broke and dean for workforce develop- functioning faucet lters, in a case but the core mission has always Todd Courser: ed. Courser still ground on its newest construction ment, as its next president, MiBiz re- brought against the Treasury De- been the same,” Wrzesinski said. Misconduct charge faces a perjury project, an expansion of the univer- ported. partment and the RTAB appointed “Our job was to help people out. dismissed. charge in the sity’s health campus in downtown J A wind energy project in Shiawas- by Gov. Rick Snyder by the American at’s what my grandfather set out to case in Ingham Grand Rapids, MLive.com reported. see County is hitting some blowback Civil Liberties Union, Concerned Pas- do when he started the store.” County Circuit Court. He is accused of GVSU named the new building Ra- as county commissioners talk about tors for Social Action and others. Wa- Business has declined in recent soliciting an aide to send a phony leigh J. Finklestein Hall, after the a moratorium on the huge turbines ter is currently available to city resi- years, Wrzesinski said, with chains email to cover up an a air with fel- Grand Rapids entrepreneur who was until they can fully understand dents at no cost, but they must pick and online companies pushing in- low Republican Rep. Cindy Gamrat. lead donor for the project. e proj- what’s being proposed. Virgin- up bottles at distribution sites dependent toy stores out of favor J e Michigan Department of Envi- ect carries a $37.5 million price tag, ia-based Apex Clean Energy wants to around the city. with consumers. ronmental Quality is extending pub- with an additional $9 million for its develop a wind turbine project in e appeal came after attorneys lic review into next year on a propos- two-story parking deck. four Shiawassee townships, the Ar- for the state argued that the judge’s MICH-CELLANEOUS al by Nestlé Waters North America to J East West Brewing Co. said it will gus-Press in Owosso reported. Coun- directive on water deliveries should J Riverside, Mo.-based NorthPoint signi cantly increase its Osceola open soon, perhaps by year’s end, in ty commissioners recently told their be delayed until they could appeal. Development sees opportunity in for- County groundwater extraction. e a 2,000-square-foot space in the lawyer to draft an opinion on a wind e state has claimed the ruling “far mer automotive manufacturing sites DEQ said last week it was extending Eastown neighborhood of Grand energy moratorium. An Apex o cial exceeds what is necessary to ensure around the state’s capitol. North- public comment until March 3, Rapids, the Grand Rapids Business said more than 140 property owners Flint residents have access to safe Point and RACER Trust announced 2017, on Nestlé’s plans to increase Journal reported. e new brewery is have signed up. A public meeting is drinking water.” an agreement that would have the pumping to 400 gallons per minute owned by Balwinder Bal, whose slated for Dec. 7. CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 3 Aaron Eckels Downtown Vision for city’s skyline Dan Gilbert talks about projects, legislation and why Detroit needs new o ce space
ame an area in greater down- tute Michigan Real Estate Forum earli- 3 percent and their o ce space grows town Detroit, and Dan Gil- er this month, Gilbert spoke with 3 percent. I can make a case that that’s Nbert thinks it makes sense to Crain's Detroit Business reporter Kirk very conservative because that ac- build there. Pinho about those projects, the legis- counts for not a single new tenant “ e river, anything along Wood- lation and, among other things, why moving downtown. I’m just saying if ward, starting to go west into Cork- he believes 10 million square feet of they just grew at the rate of GDP and town, Capitol Park,” says the billion- new o ce space is needed in Detroit. their space grew at the rate of GDP, aire founder and chairman of Quicken e interview was conducted the day and I can also say some of the compa- Loans Inc. and Rock Ventures LLC, the before Gilbert announced along with nies like us, and maybe even General most active developer in the city of Under Armour CEO Kevin Plank that Motors, for that matter, can probably Detroit with his Detroit-based Bed- the Baltimore-based retailer would make a case that we grow faster than rock LLC. open a 17,000-square-foot store in the rate of GDP. Based on what space e company, which is run by CEO one of Gilbert’s buildings. was available and what that number and co-founder Jim Ketai, has ve or turned out to be. … Make sense? six large-scale developments and re- A year ago, you were talking about No, it makes sense, but if we are only developments in the works down- the need for 10 million square feet of of- getting $23, $25 a square foot for Class town: ground-up new construction ce space. I’m trying to get to the bot- A o ce space ... and redevelopments of historic tom of the math on that. We are quoting $27. buildings like the David Stott Building I can’t give you the numbers, but I ... At that rate, how do you make the and the Book Tower. All told, Gilbert can give you the formula. Basically case for new building nancially? I’m and his team say they have about $3 what I did at the time, if you take the not aware of any huge o ce tenants billion in projects ready to go, but occupied square footage in down- looking to come down or looking to build they are pushing for some help from town and Midtown, how ever you new. the Legislature in the form of a pro- measure it, 7.2 square miles, right? You don’t need any of those based posed law that would grant tax breaks And say, if all the companies that are on what I just said. We don’t need for certain so-called “transformation- currently there just grew at the rate of anybody coming down, but they will al” projects around the state. GDP and they needed corresponding and they are. ere is one (tenant) Following a discussion at the Uni- growth of their o ce space. e you haven’t gotten ahold of. versity of Michigan/Urban Land Insti- economy grows 3 percent, they grow SEE GILBERT , PAGE 15
PHOTO BY AARON ECKELS FOR CRAIN’S DETROIT BUSINESS
Strategies MUST READS New Rizzo owner looks beyond OF THE WEEK controversy, aims for growth Crittenton foundation board changes When Ascension Health bought Crittenton Hospital, it downgraded By Chad Halcom that already has roped in the former (other) people here,” he said. “Every- Crittenton’s community foundation board, which has one former board [email protected] company’s CEO, landed three local one’s proud of where they work, and member concerned about the future of its $35 million in funding, Page 4 Former pro hockey goalie Patrick elected o cials it would have been easy for people to Dovigi says the puck got past him in court and jump ship and say they didn’t want when his company bought the for- promises several to be around for this. Vacant despite the trend mer Rizzo Environmental Services and more indict- “But they are still with us.” The Old Wayne County Building in Detroit is one of the ve biggest empty found out after the deal closed that it ments. Business continues to grow, Dovi- o ce properties in a region that’s seen an upward swing in occupancy rates, was at the center of a corruption in- “Many of the gi said. He is working in Michigan Page 8 vestigation. victims here are three to four days a week to help But he says the strengths of the our employees; “right the ship” amid a well-publi- company that drew in his company, there are 750 of cized FBI corruption probe. Job one, GFL Environmental, to buy Rizzo to them working though, is retaining con dence with expand into Michigan still remain. Patrick Dovigi: hard here, and municipal clients; already one local e Sterling Heights-based waste Focused on all this public at- community, Huron Township, has hauler, now GFL’s U.S. subsidiary, is “righting the ship.” tention now is tabled a new contract award . still a well-run business, he said, and on the actions of But the city of Southgate recently so far customers are standing by it what’s likely to be an individual or agreed to an eight-year extension on despite an ongoing corruption probe two, and that’s what hurts those SEE RIZZO , PAGE 17
Health care Hospitals weigh worth of bundled care By Jay Greene programs mandated by the A ord- Group, a Falls Church, Va.-based [email protected] able Care Act — seeks to answer that consulting rm, conducted for Detroit Medical Center and St. Jo- question. Medicare on results for the rst 15 seph Mercy Health System in Ann Ar- So far, the results at DMC and St. months of the program showed a bor are at ground zero when it comes Joseph Mercy appear to be mixed to small amount of cost savings but no to answering the question: If you pay positive, although the program is change in monitored quality mea- hospitals and physicians a at rate still in its early stages, executives say. surements. e most common bun- for a health care procedure, will that Managing care requires hard work dled payment at the 110 hospitals lower costs and improve quality be- and close coordination between surveyed was for orthopedic surgery cause care is coordinated more ef- doctors, hospitals and such post- (75 percent of hospitals), followed by fectively? acute care providers as home health cardiovascular surgery (27 percent) Medicare’s bundled payments for agencies, rehabilitation centers and and spinal surgery (18 percent). care improvement initiative (BPCI) nursing homes, they say. ough the jury is still out on — one of a dozen cost-containment An August report by The Lewin SEE MEDICARE , PAGE 16 4 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 Ascension restructures Crittenton foundation board into advisory panel By Jay Greene consolidate the hospital and founda- that we were no longer board mem- [email protected] tion boards. is was done based on bers,” said Seifert, who recently was One of the lesser known changes the size of the Crittenton organization honored as philanthropist of the year at Crittenton Hospital Medical Center and was eective in September.” by Oakland University. “We were ver- in Rochester Hills following its acqui- Taylor con rmed Crittenton creat- bally informed of the new governance sition last fall by Ascension Health ed a foundation advisory committee structure and received a vague letter Michigan was the downgrading of its under the hospital board. e com- from Russ Shelton, the current chair 50-year-old community foundation mittee includes some, but not all, of of Ascension-Crittenton hospital board into an hospital advisory com- the former foundation board. Respon- board, thanking us for our service.” mittee. sibilities are limited to promoting Taylor told Crain’s that the donated Over the past two de- fundraising and serving as li- assets remain with the foundation cades as independent hos- aisons to the community. and have not been transferred or pitals have banded together “ e Crittenton Founda- mixed with other Ascension funds. into larger multi-hospital tion will continue to honor Rob Collier, president of the Coun- systems for nancial and the intention of the past and cil of Michigan Foundations, told strategic support, local hos- future generous donors by Crain’s he looked into the changes at pital and foundation boards ensuring that the funds do- Crittenton at Seifer’s request. He have undergone changes nated continue to support spoke with lawyers in the AG’s chari- that have included ceding the work” of Crittenton Hos- table trust division. some authority to regional pital, Taylor said. “My understanding is that Ascen- or corporate o ces. at George Seifert: He added that Ascension sion can do this,” Collier said. “ e hasn’t always come without Former foundation Michigan has no plans to way the hospital board is structured, con ict. board member make similar changes at any they can terminate the foundation Under the restructuring, asked AG for of the other 14 hospitals it board if they want.” Crittenton’s hospital board opinion on change. owns in Michigan. Hospitals must play a delicate bal- of trustees now has ducia- Despite Ascension’s reas- ancing act when they join larger ry responsibility for both surances that Crittenton’s $35 health care organizations, he said. Business Growth Solutions the hospital and the $35 million foun- million in community donations re- On one hand, hospitals want to be CUSTOMIZED FOR YOUR BUSINESS dation, with some power residing mains intact and available for local use, as e cient as possible, Collier said. with Ascension Health Michigan, its Seifert said legal documents he need- But hospitals also must be transpar- Ź GENERATE MORE LEADS parent company. ed to see as foundation trustee were ent with the community, especially INCREASE CONVERSION RATES Ź Some of the former hospital foun- kept from him. He said he remains when they are seeking and managing Ź COMPEL MORE FREQUENT TRANSACTIONS dation members are now part of the concerned that community donations charitable donations, he said. Ź COMMAND HIGHER PRICES advisory committee, but not long- have no independent oversight. “ ere is a balancing act” when it Ź GENERATE GREATER PROFITS time board member George Seifert, a “ e board of the Crittenton Foun- comes to consolidating donor assets Ź BUILD A MILLION DOLLAR BUSINESS retired top executive with AT&T. dation was never o cially noti ed CONTINUED NEXT PAGE For months, Seifert had asked E-Learning Marketing System & questions about the future of the $35 million in donated community assets Coaching & Consulting Services and other pending changes aecting the hospital foundation. To learn more contact But he told Crain’s he didn't get # Keys2Business, LLC complete answers and felt he was be- ing “stonewalled” by Ascension o - 248-231-5205 • [email protected]
cials. He even complained to Attor- , www.Keys2BusinessMarketing.com ney General Bill Schuette’s o ce about the changes in responsibilities “We Guarantee Results!” of the foundation board. – CHUCK KEYS Megan Hawthorne, the AG’s depu- Author & Public Speaker ty press secretary, did not respond to interview requests. ,163,5,1*'(6,*1 At issue is whether hospital founda- tions are truly independent when arti- cles of incorporation give deci- sion-making power to the hospital board or new corporate owner. “I raised the issue of the founda- tion being an independent 501(c)3,” said Seifert, who is chairman of the Rochester College Foundation and president of the George and Elizabeth Seifert Foundation. “I was told that Crittenton was the member and they could in essence do what they want- ed. at is when we engaged inde-
pendent counsel. Even though the S lawyers came highly recommended and charged our (family) foundation over $10,000, they were of little help in providing information on the rights of the member to a 501(c)3.” Ascension o cials declined re- quests for interviews, but Brian Tay- lor, Ascension’s chief marketing o - cer, released a statement to Crain's. “Consistent with many changes in our health care environment, Ascen- sion Michigan is looking for ways to )LVKEHFN7KRPSVRQ&DUU +XEHU,QF ,B streamline governance when appro- HQJLQHHUV_VFLHQWLVWV_DUFKLWHFWV_FRQVWUXFWRUV priate,” the statement said. “While 1RYL_0DFRPE__IWFKFRP two separate legal entities will contin- ue to exist, the decision was made to Z CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 5
FROM PREVIOUS PAGE or eliminating local foundation boards, Collier said. “How do we do this and let donors know we are still helping the local community?”
Undergoing changes
In Southeast Michigan, Ascension operates the ve-hospital St. John Providence Health System. Other re- gional Ascension hospitals include Borgess Health in Kalamazoo, Genesys Health in Grand Blanc Township, St. Joseph Health System in Tawas City and St. Mary’s of Michigan in Saginaw. Last year, Ascension reorganized the governance at its other Michigan hospitals, essentially phasing out its independent hospital boards and creating a regional board structure. For example, the ve local hospital boards of St. John Providence have been eliminated in favor of a single Southeast Michigan Hospital Board. Jamie Orliko , president of Chica- go-based Orliko and Associates, said the trend of centralizing hospital boards into regional boards has been going on the past decade. Fewer boards reduces costs, enhances inte- gration, helps coordinate strategic planning and avoids in ghting be- tween member hospitals, he said. In many cases, health care systems have retooled hospital boards into es- sentially advisory boards to carry out local functions. “ ey don’t have the authority to hire or re the CEO, they don’t have audit authority, or planning,” he said. “ ey have the ultimate responsibili- ty for quality, safety, medical sta cre- dentialing, accreditation and com- munity relations.” Similar to how Ascension reorga- nized Crittenton’s board structure, Orliko said, many local hospital boards that are part of systems also Electronic Payments, carry out foundation responsibilities. “When you remove the traditional Data Privacy and duciary responsibilities from hospi- tal boards and move it up to regional Security Law Experience boards, the local hospital board now has the ability to assume oversight of ® the foundation board,” he said. “It ts very nicely.” In Your Corner. But Orliko said there is a danger Ŷ Data Security and information law, privacy when the hospital board and the policies, breach noti cation requirements. foundation board are the same and also have duciary responsibilities to Ŷ Electronic payments, mobile payments, manage charitable assets and the op- electronic fund transfers, stored value cards. erations of the hospital. Ŷ Aviation law, aircraft acquisitions, disposition, “When hospital boards have both operation, leasing and nancing, FAA lings, powers, you (as manager or trustee) International Registry requirements. tend to defer (preferences) to the money-members on the board,” he said. “ is creates con icts. You don’t want to co-mingle responsibilities.” Collier said there is a national trend in which smaller foundations have been merged into larger foun- dations to produce higher returns and reduce administrative costs. For example, MidMichigan Health in Midland this year consolidated the donor assets of its four hospitals into a newly created corporate foundation, ocials said. However, MidMichigan makes sure donated funds are earmarked into individual hospital accounts per donor prefer- ences. “ e key issue donors want is if their funds are protected,” Collier said. Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Jay Greene: (313) 446-0325 Contact Jill Miller at [email protected] Twitter: @jaybgreene 6 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 Epstein’s Trump alliance could bridge political divides ena Epstein was married in ear- in 2010, Epstein says she started OPINION ly August, but she postponed questioning her political roots while Lher honeymoon in Hawaii till De- an undergrad economics major at cember. Harvard University. She went on to The news has been Why the delay? She grabbed the earn an MBA at the University of chance to co-chair Donald Trump’s Michigan. Michigan presidential campaign af- “I literally had to Google ‘Republi- good for Detroit ter a three-minute interview with the can Party’ because I didn't know any candidate in a campaign stop in Di- MARY KRAMER Republicans,” she said last week. ver breakfast the other day, Daniel Loepp recalled the mondale in mid-August. Publisher She knows plenty now. Earlier this skepticism that greeted his 2010 decision to move Blue “He asked me: ‘Lena, how are we month, she spoke at Temple Beth El Cross Blue Shield of Michigan from suburban Detroit to doing in the polls?’ And I said, “Mr. made her a popular xture on talk about the future of the Republican Othe Renaissance Center downtown. “Nobody could predict what Trump, it’s too early to be worried shows, including some segments Party and how Americans — Repub- would come next,” the CEO said. “ ere’s so much good news in about polls. You’ve got to go out and that were picked up by cable net- lican and Democrat — could come wow this crowd like you've done in works in Europe. together. Detroit now.” every other state.’” But there were critics, too. “I grew Epstein herself bridges many po- Oh so much good news. In the last week alone, there’s been a A few days later, she began her ca- a thick skin pretty quickly,” she said. litical divides; she is active in Detroit, cornucopia of blessings for Detroit, including: reer as a co-chair and “Trump surro- If there is hope for creating a mid- including serving on the board of the n e Detroit Pistons announced Tuesday that the team will gate” on TV and radio. “I never apol- dle ground or at least a hint of civility Detroit Historical Society. Her family move from the Palace of Auburn Hills to the under-construction ogized for misstatements he made,” between Trump haters and Trump is part of the city’s history; she’s the Epstein said last week as she re- supporters, Epstein’s saga may be granddaughter of the late Stanley Little Caesars Arena. Originally conceived for the Ilitch-owned viewed her work on the campaign. “I helpful. She breaks the mold of what Winkelman, whose eponymous Detroit Red Wings, the arena is scheduled to be completed in would just pivot to why I supported the left envisions Trump voters to be. stores were a retail staple in Detroit time for the 2017-18 hockey and basketball seasons. him: to grow the economy, protect Born to a Jewish family of staunch for decades. n Construction began on the American Center for Mobility our borders and have increased op- Democrats, Epstein and her sister At a donor party for the Detroit testing site for driverless cars at Willow Run. Housed at the site of portunities for families and chil- Lily are the third generation to run Historical Society two days after the a World War II bomber factory, just outside the city that democ- dren.” the family's South eld-based Vesco presidential election, Detroit Mayor Her straightforward responses — Oil, a distributor of lubricant prod- Mike Duggan teased Epstein, who ratized transportation in the not excusing the bombast of the can- ucts to customers ranging from car has been a Duggan supporter and early 1900s, the $80 million didate or the missteps like the infa- dealers and oil-change outlets to contributor: “I thought for months, project is an important part mous 2005 audiotape of Trump’s manufacturers. e company has poor Lena, she has the worst job in of the campaign to make lewd comments about grabbing 200 employees and operates in ve Michigan. en on Wednesday Michigan the home of 21st women, but focusing on issues many states. morning, I thought: She’s the smart- silent voters found important — A Crain’s 20 in their 20s honoree est person in Michigan.” century mobility. n Kevin Plank kept his promise to Dan Gilbert, an- TALK ON THE WEB nouncing that his Under Ar- mour Inc. will open a store Re: Millennials signing up Reader responses to stories and ing him was to stab him in the back. in downtown Detroit in the for Obamacare blogs that appeared on Crain’s John md spring. Plank made the an- website. Comments may be edited Even with insurance, a procedure for length and clarity. I support the protesters, not be- nouncement at a Children’s of $500 or less (which, honestly, is cause I don’t want to give Donald Tumor Foundation fund- quite reasonable for an ER proce- Trump a chance, but because he raising gala hosted by Gil- dure) would likely fall under the de- an illustration of ignorance. Are the needs to address them himself and as- bert, which raised nearly $5 ductible of whatever least-expensive millennials that are now signing up sure them that he will not discrimi- plan millennials are paying for. I’m for insurance guring Trump will nate against them. million. At the 2015 Detroit not saying anyone shouldn’t carry not pick up the bills for their oop- COSTAR GROUP INC. E M Parmelee Homecoming, Plank spoke seys? Sources told Crain’s that Adient will move insurance, but if this is the primary of investing in Detroit - into the Marquette Building at 243 W. argument for it, the more conten Carolyn Mazurkiewicz Re: Rizzo CEO resigns as Congress St. in downtown Detroit. during an interview with tious millennial buyers will balk. feds charge 2nd ocial Gilbert. Paul Lacey Re: Keith Crain: Good, bad n e world’s largest steelmaker, ArcelorMittal, is opening a election eects likely Look for the investigation to ex- ere is no human being immune to pand. plant in Detroit for the rst time. e plant, which won approval sickness or injury. Millennials are Yes, let’s give Trump a chance just BenAround of a $2 million grant from the Michigan Strategic Fund last week, walking away from severe auto acci- like the Republicans did with Obama will add at least 120 jobs over ve years. dents without injury? Millennials are when they stated emphatically at the Re: Cox will be 1st woman n Auto seat maker Adient Ltd. announced Tuesday that its cor- exempt from cancer? Really? Hospi- beginning of his presidency they to lead budget panel porate headquarters are moving to downtown Detroit (Crain’s tals have patients of all ages. I have would oppose everything he support- heard millennials characterize an ed. ankfully, Obama was able to First-term lawmaker becomes rst reported the plan last month). With the state’s backing and a expensive sickness or injury as an jam through the bailout of the auto chairman of the most powerful legis- $97.9 million investment, Adient follows the path carved years oopsey. In many cases of not carry- industry that went on to record sales lative committee. What a telling com- ago by foresighted leaders like Gilbert of Quicken Loans and ing insurance, their expensive treat- and helped to turn around Detroit. ment on term limits. Loepp of Blue Cross Blue Shield. ment is paid for by taxpayers. is is Detroit’s and Michigan’s way of thank- Jungoni A great combination All too often we hear about folks It took hundreds of volunteers Who would have imagined that Over a quarter of a century ago, who say it can’t be done. Most of the and sponsors to make it a success. the Pistons would join the other Detroit introduced the North Ameri- time they are wrong. And now it is quickly gaining nation- three pro sports teams downtown? can International Auto Show to the Certainly one of the great success wide fame as well. Just one more in- Just another indication of our recov- world, taking what was a smaller stories took place last week. e De- dication of the continued recovery of ery. dealer-focused show into a major troit anksgiving Day Parade — Detroit. Detroit is on a roll, and nothing platform for new vehicle introduc- now dubbed America’s anksgiv- It has not happened in a day, but it demonstrates it more than the ded- tions by global auto players. ing Parade — has been one of the continues every day getting better icated team that puts on our pa- It has been a great success that great private/public partnerships. KEITH CRAIN and better. rade. continues to need the support of all With furniture retailer Art Van an- Editor-in-chief It has been a slow and sometimes We have the right leadership in of us. choring the parade as well as other di cult journey. But the progress is both the public and private sectors. Detroit is the comeback kid. Let sponsors, the entire community can enjoy this annual rite. undeniable. But we can't take it for granted. us keep helping it grow. CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 7 Private equity rm buys controlling interest in Avomeen By Tom Henderson He wanted to get back into analyti- as claimed. It was. [email protected] cal chemistry and drug develop- Other early customers were a law High Street Capital, a Chica- ment, having owned companies rm that needed to know if a liquid go-based private equity rm, that did those things from 1990 to that caused a slip and fall was the planned to announce Monday 2009. same liquid an employee at a gas that it has bought a controlling in- Avomeen has provided chemical station used for cleaning, and a terest in Ann Arbor-based Avo- testing and analysis for the pharma- pet-supply company that wanted meen Analytical Services LLC, a ceutical, cosmetic, consumer prod- anedar to develop a nonpetro- fast-growing chemical testing and uct, health and beauty and manu- leum-based coating to protect dog analytics company. facturing industries. A focus is on paws while out walking or running In June, Shri anedar, who deformulation, a type of reverse en- on snow in the winter. founded Avomeen in 2010 and is gineering that identi es ingredients Capstone Partners LLC provided its CEO, was named an Entrepre- in complex formulations. investment banking services for the neur of the Year by Ernst & Young His rst client was a company deal, the terms of which were not for the Michigan and northwest that was purchasing another com- disclosed. Ohio region, and the company has pany and wanted to know if the for- Tom Henderson: (313) 446-0337 TOM HENDERSON/CRAIN’S DETROIT BUSINESS been on the Inc. 5000 list of fast- mulation of one of its products was Twitter: @tomhenderson2 Shri Thanedar founded Avomeen Analytical Services in 2010. est-growing private companies in the U.S. two years in a row. In 2015, Avomeen was ranked 673rd for its 670 percent growth rate over three years, and in 2016, the company was ranked No. 1,365 for a three-year growth rate of 281 percent. anedar said the company has grown revenue by 400 percent in the last four years to more than $10 million. In 2014, anedar was a nalist at a Crain’s Salute to Entrepre- neurs event. anedar said that with High Street’s support, the plan is to grow Avomeen through acquisi- tion and to expand its brick-and- mortar presence to California. He said he will remain as CEO for now, but the company will start looking for a replacement. “I’ve kept a large stake in the company and will continue run- ning it for the short term, but we’ll hire a CEO in the next three to six months, and I’ll move on to a board position,” said anedar, who is 61. “I’ll take on other proj- ects and things of interest. “I want to take the company to the next level in the next four to ve years, so it’s better to share the risks and rewards with High Street, which has an expertise in growing companies,” said ane- dar. “ ey will be more than just nancial parters. ey bring a lot of operational expertise to the ta- ble.” He said he hopes to double cur- rent employment of 50 and dou- ble current revenue in that time. Twenty-two of its employees have Ph.Ds. anedar said he wants to hire 10 to 15 scientists in the next four months. “California is an area we want to expand to. Many of our clients are in California, and they’d like us to have a local presence,” he said. “Dr. anedar was looking for a partner to continue Avomeen’s Huntington is proud to have recently been recognized rapid growth through opening new labs near key customers, as a Regional and National 2014 Greenwich Excellence completing acquisitions and Award in Middle Market Banking for Cash Management rounding out the company’s infra- Overall Satisfaction. We’re even more proud of our structure,” Rob France, a High Street Capital principal, said in a treasury management team, who earned this award statement. “High Street Capital through their hard work and dedication to our customers. brings relationships, capital and expertise to help Dr. anedar and his team execute upon this growth Member FDIC. ¥® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington® plan.” Welcome.TM is a service mark of Huntington Bancshares Incorporated. © 2016 Huntington Bancshares Incorporated. anedar founded Avomeen in December 2010 after brie y trying retirement and nding it boring. 8 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016
Five empty oce buildings, clockwise from top: Old Wayne County Building, Detroit; Centerpointe Business Campus building, Pontiac; former Federal-Mogul Headquarters building, Southeld; Ottawa Tower II, Pontiac; former Kmart headquarters, Troy. SPECIAL REPORT: REAL ESTATE Wide-open spaces A look into 5 large metro Detroit oce buildings that have missed the declining vacancy rates trend
By Kirk Pinho represent 3 percent of the 74.64 mil- growth on the Big Beaver corridor.” property. Forbes Frankel Troy Ventures LLC. [email protected] lion-square-foot regional o ce mar- During a conference last week, After Kmart vacated the o ce e Detroit Free Press reported the Sitting at the southern end of what ket. A tiny blip overall, but still enor- Forbes said his company is in the complex in the mid-2000s and December 2009 sale price as $17.5 is known as the Woodward loop in mous in their own right. middle of developing a master plan moved to Illinois as a subsidiary of million. Sidney Forbes, founder of Pontiac is the Ottawa Towers II build- And each has its story. for the property. Sears Holdings Corp., the plan was for Forbes Co., told Crain’s in 2012 that ing: Vacant, unused for years as its “We feel the need in Troy for a real a $320 million redevelopment called the purchase of the Kmart property owners fought in court with the city Former Kmart communal place, a central gathering the Pavilions of Troy. Reston, Va.- “was a defensive move” after Farm- over the demolition of the Phoenix headquarters, Troy spot, surrounded by some potential based developer Richardson Develop- ington Hills-based Grand/Sakwa De- Center parking deck. lifestyle and other-type uses com- ment Group Inc. was to be the devel- velopment began courting Somerset With 200,000 square feet, it is the At West Big Beaver Road and plementary to Somerset,” said oper; New York City-based equity Collection tenants for a retail devel- fth-largest o ce building in the re- Coolidge Highway sits the largest va- Forbes, who owns the nearby Somer- fund BlackRock Inc. owned the prop- opment. gion sitting empty, according to data cant o ce building in the region, the set Collection shopping mall. erty at the time. “So when we had the opportunity compiled by Newmark Grubb Knight former Kmart Corp. headquarters He said there should be “some- BlackRock paid $40 million for the to buy that land, we took it,” Sidney Frank. that has been empty since the retail- thing to show the marketplace” in Kmart property in December 2005, Forbes said four years ago. ose ve buildings outside the er ed for Illinois more than 10 years the next six to nine months. according to CoStar Group Inc., a Grand/Sakwa’s plans stalled at downtown Detroit market have sat ago. at’s a change that real estate ex- Washington, D.C.-based real estate the Troy City Council, and there has that way for years, bucking the region- Its challenges, not the least of perts see as being the result of in- information service. at project been little action on it since. al trend of declining vacancy rates as which is its sheer size, are seen as creased development activity in the would have had 440,000 square feet At its peak, the Kmart property ac- the economy continues its upward immense but not insurmountable. area, such as a Florida developer’s of commercial and retail space, 132 commodated 5,000 employees. swing (See related story, Page 11). All In fact, renewed interest in redevel- plans for a $130 million apartment residential units, a public ice rink, a When it was sold in 2005, it had few- were mothballed when large corpora- oping the 1.1 million-square-foot be- project next to the City Center Build- 3,000-seat theater, restaurants and a er than 1,900, many of whom were tions or governments ed elsewhere, hemoth has regenerated recently as ing at 888 W. Big Beaver. Plans are to grocery store. But under the weight transferred to Illinois. either amid downsizing, a large cor- owner Nate Forbes said this summer renovate that building as well. And of the economic recession, those While the Kmart building may porate bankruptcy or after a rent-rate that his Forbes Co. is again “reviewing there have been ongoing discussions plans collapsed. technically be o ce space now, no ght. development plans for the site ... that in recent months about how best to Both the Kmart property and the one expects it to remain that way. With 2.27 million square feet, they will complement the vibrancy and use the city’s 127 acres of municipal Somerset Collection are owned by SEE VACANCIES, PAGE 9 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 9 SPECIAL REPORT: REAL ESTATE nanced with public funds through a the building. e county contended is about 47 percent occupied, largely VACANCIES range of programs. Online: Step inside the 5 it was paying $45 per square foot, by State of Michigan employees, Ste- FROM PAGE 8 e building has three oors and buildings. See the photos at while a representative of the owner- phens said. sits on 24 acres. crainsdetroit.com/ ship group said the county was actu- e problem with leasing the va- Centerpointe Business realestate ally paying $16 per square foot. cant building has been uncertainty Campus building, Former Federal-Mogul Ficano then led a $40 million surrounding Pontiac’s proposed Pontiac headquarters, Southeld got incredible potential.” lawsuit against the owners, accusing demolition of the Phoenix Center, e property, built in the early them of billing for unnecessary ex- which attaches the two buildings While not vacant in the truest is 360,000-square-foot property 1970s, is owned by New York City- penses, not returning a security de- and provides parking for their ten- sense — it does have semi-regular is a bit of an outlier among the bunch based Lexington Realty Trust, which posit and not paying a debt of $35 ants. use as a movie studio in nearby because at least one big user, Beau- paid $12.7 million for it in July 2004, million. A four-year legal battle is ongoing, space — the 384,000-square-foot mont Health, recently had been in according to CoStar Group Inc. e building is currently owned but the Michigan Supreme Court re- Centerpointe Business Campus serious negotiations to buy it and by a New York-based investment cently declined to take up a condem- building is the second-largest empty then occupy it, according to sources. Old Wayne County group that has remained largely qui- nation case led by the city, which o ce building in the region. However, that deal collapsed ear- Building, Detroit et since purchasing it more than two owns the parking deck. at, in turn, e building is owned by Michigan lier this year. years ago for $13.4 million. However, makes active again an injunction the Motion Picture Studios LLC and oper- Located at 26555 Northwestern With 225,000 square feet, the Old sources have said that construction building owners led in 2012 after ates as Raleigh Michigan Studios at the Highway, the property that consists Wayne County Building at 600 Ran- and renovation work is expected to the then-emergency manager, Louis site of a former General Motors truck of four interconnected buildings dolph St. downtown is the most opu- begin this month. Schimmel, announced plans to de- plant and o ce complex. had been the home to automotive lent of the group, but because of its e Guardian Building purchase molish the city-owned deck. “It’s been in steady use for the last supplier Federal-Mogul Holdings Corp. unique layout, it presents challenges was part of a larger deal that includ- “We had nearly completed reno- four or ve years, but the building is until two years ago, when the com- for potential tenants. Real estate ex- ed the 35,000-square-foot building vations and upgrades and started for lease,” said John Boyd, agent/ pany moved about 750 employees perts have said in the past that the at 511 Woodward Ave. (which also marketing the building,” Stephens broker at South eld-based Signature into the former Blue Cross Blue Shield building, which is more than a cen- sits empty) and the 1,450-space First said. “We were starting to get a lot of Associates Inc., which is marketing it of Michigan o ce complex in South- tury old, is best suited for a single Street Parking Deck. interest, a national call center specif- with an asking rent of $9.50 per eld. tenant. ically, because OnStar already had square foot plus utilities. “But the e South eld o ce of Colliers In- It has been vacant since Wayne Ottawa Tower II, Pontiac the beroptic infrastructure (in ‘Transformers’ ( lming) just ended ternational Inc. has the listing to sell County moved its executive branch thebuilding) for a call center. ... anything is possible.” the building or lease it to tenants. employees into the Guardian Building is 200,000-square-foot build- “We are not soliciting tenants for a e studio’s nancial backers in- “It’s incredibly well located, and in 2008. ing, part of a two-building complex couple hundred square feet; primar- clude entrepreneur Linden Nelson; it’s an incredible campus,” said Paul Former County Executive Robert that housed General Motors em- ily the type of tenants who want a John Rakolta Jr., CEO of De- Choukourian, managing director of Ficano and the former ownership ployees, became vacant about six minimum of 20,000 to 25,000 square troit-based Walbridge Aldinger; the the local Colliers o ce. “It’s in the group Old Wayne County Building LP years ago when GM’s trucking divi- feet, or the whole building. But no- Taubman family; and Ari Emanuel, center of everything — for really any had a dispute about rent, and the sion employees left, said Michael body is going to move 1,000 people brother of Chicago Mayor and for- industry, but especially for automo- county purchased the Guardian Stephens, who is part of the build- into a building if you can’t guarantee mer White House Chief of Sta tive. e campus is remarkable, with Building that year. Ficano claimed at ing’s ownership group, Ottawa Tower the parking.” Rahm Emanuel. extra land for expansion and incred- the time that it was being over- II LLC. Kirk Pinho: (313) 446-0412 e project was also heavily - ible amenities inside the facility. It’s charged for its 200,000 square feet in e other Ottawa Tower building Twitter: @kirkpinhoCDB
AGENCY LEASING | TENANT REPRESENTATION | ASSET SERVICES VALUATION & ADVISORY | CAPITAL MARKETS
Brian Piergentili Garrett Keais Tony Avendt Managing Principal Senior Managing Director Senior Vice President [email protected] [email protected] [email protected]
28411 Northwestern Hwy, Suite 900 Detroit, MI 48034 10 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 SPECIAL REPORT: REAL ESTATE Auto recovery drops oce vacancy rates, but will turnaround last? By Kirk Pinho more occupied. at city had a va- [email protected] Metro Detroit oce cancy rate of 31.7 percent in 2011 One of the key e ects of the econ- market trends and today is a healthier 21.3 percent. omy’s improvement since the 2008 Greater downtown Detroit has gone recession has been a decline in va- Vacancy from 31.2 percent vacant to just 15.5 cancy in the region’s biggest subur- 2011: 27.3 percent percent, and Farmington Hills has ban o ce markets. fallen to 12.7 percent from 19.8 per- 2016*: 17.8 percent We can thank the automotive in- cent in 2011. dustry for fewer empty o ce oors Total inventory Declining vacancy rates are having in Wayne, Oakland, Macomb, Liv- 2011: 71.3 million square feet an impact on tenants, said Mark Kry- ingston and Washtenaw counties, as sinski, partner of the Real Estate Prac- 2016: 74.6 million square feet a record-breaking 17.5 million cars tice Group for South eld-based Jae were sold in the U.S. last year, out- Average rental rate Raitt Heuer & Weiss PC. pacing the previous high of 17.4 mil- 2011: $18.82 per square foot “I think o ce is performing bet- lion in 2005. ter, signi cantly, and as a result, ten- $19.31 per square foot In short, more car production and 2016: ants have less power today than they sales mean more auto suppliers and * Through third quarter. had shortly after 2006,” he said. other companies need to hire work- Source: Newmark Grubb Knight Frank “at’s for sure. It’s a tighter market. ers and take more o ce space. ere is still space out there, but it’s “We are still automotive oriented,” are making an entry into the local getting harder and harder to nd.” said Steve Morris, managing principal o ce market as well, said Paul Mark Collins, senior vice presi- of Farmington Hills-based real estate Choukourian, managing director of dent in the South eld o ce of CBRE rm Axis Advisors LLC and an adjunct the South eld o ce of Colliers Inter- Inc., said that each year for the past professor at the University of Michigan’s national Inc. “All the industries are four or ve years, there has been Stephen M. Ross School of Business. doing better. e economy is up, about 1.5 million to 1.6 million According to data from Newmark mainly driven by automotive in this square feet of previously vacant Grubb Knight Frank, which has o ces market,” Choukourian said. space that has been leased. in South eld and Farmington Hills, e region’s largest submarkets “ings have been steady like the region’s o ce market was 20.9 (markets outside downtown Detroit) this,” he said. percent empty at the end of 2006. Yet have all trended positive the past ve But how the auto industry and oth- ve years later in 2011, it hit 27.3 per- years: South eld is at 17.22 million ers fare the next several years will im- cent, leaving 19.47 million square square feet, greater downtown De- pact how much longer the positive feet of the 71.33 million square feet troit is at 15.56 million, Troy is at leasing trends continue. is year’s to- without a tenant. 13.26 million and Farmington Hills tal car sales and next year’s are project- Fast forward another ve years, is at 6.25 million. ed to be at, but still close to meeting and the o ce market, which now South eld’s o ce space has gone 2015’s record-high 17.5 million. stands at 74.64 million square feet, is from a 31.5 percent vacancy rate at “We are going into our seventh or 17.8 percent vacant. Companies be- the end of 2011 to 21.9 percent this eighth year of a recovery, so we are Business yond automotive, such as tech rms, year, and Troy has similarly become due for a downturn,” Morris said. Insurance FIRST YEAR FREE
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*New customers only. Conditions and restrictions apply. Subject to availability. ”In Omnia Paratus” Offer subject to change. Business • Personal 888.513.8784 www.insureFIDA.com 877.822.4922 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 11 CRAIN'S LIST: LARGEST NONRESIDENTIAL PROPERTY MANAGERS By square feet under management in metro Detroit Total square Total square feet feet nonresidential nonresidential Total square property under property under foot management management nonresidential Company INSIDE metro OUTSIDE property under Address Detroit metro Detroit management Rank Phone; website Top local executive(s) Oct. 2016 Oct. 2016 Oct. 2016 Major properties under management Jones Lang LaSalle Americas Inc. Ken Koupal, Larry Emmons, 35,200,000 41,900,000 77,100,000 GM properties, American Axle HQ, BOA properties 226 E. Hudson, Suite 200, Royal Oak 48067 Tim Kay, managing 1 (248) 581-3300; www.jll.com directors; John Cullen, SVP of property management and John M. Krieger, EVP CBRE Inc. John Latessa, executive 32,983,839 8,024,106 41,007,945 The Renaissance Center, 777 E Eisenhower Pkwy, Ann Arbor, and 888 2000 Town Center, Suite 500, Southfield 48075 managing director; Todd W Big Beaver, Troy 2 (248) 353-5400; www.cbre.com Pardon, asset services director Farbman Group/NAI Farbman Andrew Farbman, CEO; 18,000,000 9,000,000 27,000,000 Chase Tower, Sheffield Office Centre, Bingham Office Center, 28400 Northwestern Highway, Fourth Floor, Southfield Andrew Gutman, president; Southfield Centre, Riverside Center, 1007 Church St., Oakland 3 48034 Michael Kalil, COO Commons, New Center One, 205 W. Randolph, 209 W. Jackson, (248) 353-0500; www.farbman.com Parklane Tower, Midland Mall, 27777 Inkster Ford Motor Land Development Corp. Donna Inch 15,608,322 0 15,608,322 Regent Court; iTek Center; Fairlane Office Centre; Corporate 4 330 Town Center Drive, Suite 1100, Dearborn 48126 chairman and CEO Crossings; Fairlane Business Park: Product Development Center; (313) 323-3100; www.fordland.com Fairlane Plaza Bedrock Real Estate Services LLC Jim Ketai, CEO, managing 14,400,000 7,750,000 22,150,000 One Campus Martius, One Detroit Center, First National Building, The 1092 Woodward Ave., Detroit 48226 partner; Dan Gilbert, Z, Chase Tower, 615 West Lafayette, One Woodward, Chrysler House, (888) 300-9833; bedrockmgt.com partner 1001 Woodward, Book Building, Book Tower, David Stott Building, 5 Federal Reserve Building and others
Ashley Capital LLC Susan Harvey 14,000,000 10,000,000 24,000,000 Brownstown Business Center; Romulus Business Center; Livonia 5 2575 S. Haggerty Road, Suite 500, Canton Township 48188 senior vice president Corporate Center (734) 394-1900; www.ashleycapital.com Newmark Grubb Knight Frank Frederick Liesveld, 13,940,000 3,000,000 16,940,000 PNC Center, Travelers Towers, Jewish Community Center, Farmington 27725 Stansbury Blvd., Suite 300, Farmington Hills 48334 executive vice president and Hills Officenter I & II 7 (248) 350-9500; www.ngkf.com Jerry Burgess, director of management services
A property manager oversees all financial, administrative, contractual, maintenance and daily operations for the interior and exterior of properties. This list is an approximate compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies with headquarters in the Detroit area are listed with their total property under management. Companies outside the area are ranked by property managed by their Detroit offices only. This is not a complete list but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available.
LIST RESEARCHED BY SONYA D. HILL 12 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 Browneld legislation would cap annual tax captures at $50M Michigan Senate could vote “We think the $50 million is a re- About the coalition n The Right Place Inc., a Grand Venture North on bills as soon as Tuesday, sponsible, doable number that Rapids-based economic development A 26-member coalition called MI n Petoskey Regional Chamber of coalition says should satisfy people who are a little agency bit worried,” Austin said. “We’re not Thrive has formed in support of Commerce Senate Bills 1061-65, known as a n By Lindsay VanHulle funding projects through this pro- Grand Rapids Area Chamber of n Central Upper Peninsula “transformational browneld plan,” Crain’s Detroit Business/Bridge Magazine gram. We’re just helping bridge any Commerce Planning and Development that would allow the capture of state LANSING — Legislation pending kind of gap (developers) might n Sam Cummings, managing partner Regional Commission sales and income taxes to help in the Michigan Senate to allow de- h av e .” of Grand Rapids-based CWD Real n Lake Superior Community velopers to capture a share of state e proposal would capture new nance large development projects Estate Investment Partnership sales and income taxes to defray sales and income tax revenue gener- on contaminated sites. The bills n Building Owners and Managers costs of large projects on contami- ated at completed real estate devel- cleared the Senate’s economic n Michigan Realtors development and international Association of Metro Detroit nated property would limit the opments from new residents and n Michigan Economic Developers amount of captured annual tax reve- retail customers. Developers would investment committee in September; n Saginaw Future the full Senate could take them up in Association nue to $50 million, Crain’s has be able to use the capture to help - n Saginaw County Chamber of n , a Flint-based learned. nance what are being called trans- lame-duck session, possibly as soon Skypoint Ventures Commerce real estate development rm e change is one of several being formational brown eld projects, or as Tuesday. n , a o ered by proponents of the so- those on property with environmen- Members include: Shaheen Development n Macomb County Chamber of Saginaw-based real estate called transformational brown eld tal contaminants or are considered Commerce n Rock Ventures LLC, the holding development rm incentive as the Senate considers blighted or obsolete. company for Detroit businessman n Jackson County Chamber of n voting on a ve-bill package when Another change to the bills would Dan Gilbert’s family of companies Southwest Michigan First Commerce the lame-duck session resumes next include historic buildings if the stra- n Lansing Economic Area n HRS Communities LLC, a n City of Jackson week, possibly as soon as Tuesday. tegic fund “determines the redevel- , a Lansing-based Farmington Hills-based real estate Partnership Inc. e tax revenue cap did not exist opment is not economically feasible economic development agency n City of Sterling Heights, including under a version of the bill that absent the transformational brown- development company its economic development adviser n• , a Traverse cleared a Senate committee in Sep- eld plan,” according to information n TraverseConnect Detroit Regional Chamber n City of Southeld tember, raising early concerns that from the coalition. City-based umbrella organization n Invest Detroit developers would bene t from limit- Developers would have to meet housing the Traverse City Area Sources: MI Thrive, Van Dyke Horn Public Relations less tax captures at the expense of minimum private investment n Downtown Detroit Partnership Chamber of Commerce and governments and schools. It was thresholds; in Detroit, that would added later in an e ort to shore up require at least $500 million in pri- given year could be fewer than ve al tax revenue, Austin said, as well as ect’s costs are recovered. the legislation as scally responsi- vate funding, and $15 million to depending on how much captured consult with the state treasurer be- Other amendments would add ble, said Dan Austin, a senior ac- $100 million in smaller communi- revenue they would require. fore approving an incentive. Sup- incentive clawbacks in the event to- count executive with Detroit-based ties, depending on the population. e revised legislation also would porters have said developments tal private investment di ers from VanDyke-Horn Public Relations, who e Michigan Strategic Fund, a di- require the strategic fund board to chosen for the incentive would need what was proposed or does not meet represents a coalition of developers vision of the Michigan Economic De- select a third-party rm to conduct to have a net nancial gain for the minimum requirements. and economic development agen- velopment Corp., could approve only an independent scal analysis of state. A brown eld TIF could last for Under the incentive, a maximum cies across the state backing the pro- ve projects per year. Austin said the proposed projects that would cap- up to 30 years, though the intent is of 25 percent of residential income posal. number of approved projects in a ture more than $1.5 million in annu- for the capture to end once the proj- taxes paid by residents of the new developments generally would be captured. Detroit businessman Dan Gilbert oated the concept for the legisla- tion in conjunction with economic development agencies across the state. In the city, Gilbert is planning to redevelop the J.L. Hudson’s de- partment store site on Woodward Avenue and is working on a plan for a $1 billion Major League Soccer sta- dium and mixed-use project on the site of the Wayne County Consolidat- ed Jail building on Gratiot Avenue, despite Wayne County’s recent deci- sion to move forward with the jail project. Both could be potential candidates for such an incentive. “It is well established that smart forms of assistance are needed to make challenging redevelopment projects possible in Michigan’s cit- ies. Given the gap between con- struction and rehabilitation costs and market rents, particularly in our urban cores, many projects are sim- ply not viable without assistance to close this gap,” the coalition, known as MI Thrive, wrote in a letter to Gov. Rick Snyder and legislative leaders. “While current programs are helpful for small and mid-sized projects, they do not solve for the large-scale projects that will have the greatest impact in accelerating the growth and revitalization of Michigan’s cities,” the letter stated. Snyder spokeswoman Anna Hea- ton said the governor has noted The Leader in concerns about the bills as they were introduced, but will wait to de- cide whether he would sign them Shareholder Rights until after the bills nish moving through the legislative process. Lindsay VanHulle: 517-657-2204 Twitter: @LindsayVanHulle CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 13 KeyBank names Willett president of Michigan, northwest Ohio markets By Tom Henderson gan market president. He had held the accounting from Michigan State Uni- [email protected] title on an interim basis since March, versity and his MBA in nance from Cleveland-based KeyCorp (PNYSE: when Kirk Albert left KeyBank to join the University of Michigan. KEY) has named Ted Willett as Michi- the Ann Arbor-based Michigan Busi- Willett lives in Bloom eld Hills gan market president for KeyBank. He ness Alliance, a lending organization and belongs to the Detroit Athletic has also been named commercial serving area credit unions. Club, Oakland Hills Country Club, and banking sales leader for the Michigan Willett has nearly 30 years’ experi- Detroit chapter of the Association for and northwest ence in the nancial services indus- Corporate Growth. Ohio markets. try, mostly in commercial and corpo- KeyCorp had assets of about $136 HELPING COMPANIES NAVIGATE THROUGH Willett will rate banking. Before starting his billion in 15 states as of Sept. 30. also be responsi- banking career, he was in public ac- According to the Federal Deposit In- DIFFICULT BUSINESS SITUATIONS ble for broaden- counting in the Detroit o ce of surance Corp., as of June 30, KeyBank ing KeyBank’s KPMG. was 17th in deposit share among • Turnaround, Workouts & Restructuring community in- He began his banking career as a Michigan banks, with 23 branches, • Performance Improvement • Litigation Support volvement. commercial banker for NBD Bank and deposits of more than $1.3 billion and • Fraud Investigations & Forensic Accounting “Ted’s proven then worked for Wells Fargo in a vari- a market share of 0.67 percent. • Executive Coaching leadership and ety of commercial and corporate Chase Bank was No. 1, with 246 collaboration banking roles before joining Key in branches, deposits of $42 billion and
Ted Willett: skills, market 2015 as a commercial banking sales market share of 20.96 percent. Excited to lead this knowledge, com- leader for the northwest Ohio and Tom Henderson: (313) 446-0337 market. munity involve- Michigan markets. Twitter: @TomHenderson2 calderonelight.com ment, and strong “I’m thrilled and excited to be business acumen make him the ideal named to this position and to lead leader for these markets,” said Jim this market during the growth we are Ho man, president of the northwest seeing,” Willett told Crain’s. “I’ve Ohio market, in a press release. “We been in commercial banking here for are excited to welcome him to this 28 years, and I’ve never been so excit- new position.” ed about this market.” Willett replaces Ho man as Michi- Willett got his bachelor’s degree in
A er making key hire, Honigman to open 7th o ce in Grand Rapids By Chad Halcom acquisition of the performance and [email protected] lifestyle group from Kansas-based Detroit-based Honigman Miller Collective Brands Inc. in 2012, and an Schwartz and Cohn LLP is opening a adviser to Canadian auto supplier WHO WILL seventh law o ce, in Grand Rapids, ABC Group Inc., acquired by Cerberus after hiring away the managing part- Capital Management LP earlier this ner of another top national law year for undisclosed terms. MAKE rm’s o ce in that city last week. A 1984 graduate of the Indiana Tracy Larsen, founder and for- University School of Law, Larsen was BUSINESS mer partner of the Michigan o ce previously an attorney at Warner of Barnes & Thornburg LLP in Grand Norcross & Judd LLP, Grand Rapids’ Rapids' PNC Bank Building, joined largest law rm, before joining HAPPEN? Honigman as co-chair of the rm’s Barnes, and he enjoyed a good busi- mergers and acquisitions practice ness relationship with Honigman SPARTANS group and as managing partner of long before joining the Detroit rm. the new Honigman o ce. He has “I am delighted to be associated WILL. been working from the rm’s cur- with the Honigman team,” he said. rent Kalamazoo o ce while locat- “It has been considered the domi- ing a permanent o ce space, likely nant Michigan law rm for about to open in Grand Rapids’ downtown all of my time in practice since business district by early 2017. 1984. We’ve known about each oth- “ e overall strategy of growth for er a long time, and I used the rm Honigman has always been one of as a referral source, and we’ve al- talent acquisition, more than a focus ways had a good relationship when JON CURTIS, MBA ‘16 SENIOR FINANCIAL ANALYST on the acquisition of geographic this (move) just happened to devel- GENERAL MOTORS space,” he said. “ ere is no doubt o p.” that our new local o ce will have a Honigman Chairman and CEO focus on mergers and acquisitions, David Foltyn also hailed the addi- but any other skills we may attempt tion of Larsen to the rm and his ex- to build out are yet to be seen or de- perience in complex business trans- MMichihigaann State University’s Broad Coolllleleegge off BusBusineess helheellps wwoorrkking prrofessionals reeach thheir gooalsa . cided. We haven’t sat down yet for a actions. Whethet r youu wwant to analyze bib g data too drd ivvee dedeccisiions,s leeead glooobbal teams, or shhaape the future of yoouur speci c discussion on a Grand Rap- “His arrival is the latest step in bbusiness, our Executive MBABAA prrepapaares yyou to take on tomormorrow’ss cchallengegees.s ids strategy.” our talent acquisition strategy as we Still, Larsen has experience grow- both expand our footprint in Michi- Wiith classes held every other weekend foro 20 monthss, an MBBAA from the top-rankked ing local o ces. He was the rst gan and welcome one of the most business college at Michigan Statte University is closses r than you think. Michigan attorney in 2003 for India- respected and active M&A lawyers napolis-based Barnes & ornburg, in the Midwest,” Foltyn said in a which now houses about 25 of its statement. Learn more at: more than 550 attorneys in Grand Robert Sikkel, administrator of BROAD.MSU.EDU/EMBA Rapids. the Grand Rapids labor and employ- During his tenure at the o ce, he ment law department, is now man- has handled hundreds of transac- aging partner of Barnes’ Michigan tions, including as an adviser for o ce. Rockford-based Wolverine World- Chad Halcom: (313) 446-6796 wide (NYSE: WWW) on a $1.2 billion Twitter: @chadhalcom 14 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016
NEW PRODUCTS Leon Speakers, Ann Arbor, manufacturer of custom DEALS & audio and video designs, announced Tonecase, cus- tomizable solutions to enhance Sonos speakers. Web- CALENDAR site: leonspeakers.com. TUESDAY chief executives — in retailing, manu- DETAILS NOV. 29 facturing, nance, high technology, STARTUPS Sheri Michael Bouchard — Leading in publishing, advertising, automobiles ACQUISITIONS & MERGERS One Earth Writing, Huntington Woods, a nonpro t Times of Chaos. and pharmaceuticals. Great Lakes Habitat for Humanity of Oakland County, Pontiac, public charity focusing on writing workshops, has 7:30-9 a.m. Leader- Culinary Center, South eld. $35 mem- a home improvement nonpro t, has acquired two opened at 25121 Scotia Road. Telephone: (248) 376- ship Oakland. e bers; $50 nonmembers. Website: ReStore locations in Farmington Hills and Pontiac. 0406. Website: oneearthwriting.org. Oakland County inforummichigan.org. Website: habitatoakland.org. sheri shares what Deals & Details guidelines. Email it’s like to lead in The Big Four. 11:30 a.m.-1:30 p.m. Jan. EXPANSIONS [email protected]. Use any Deals & Details turbulent times in 17. Detroit Economic Club. Detroit Art Van Furniture, Warren, has opened PureSleep item as a model for your release, and look for the law enforcement. Mayor Mike Duggan, Wayne County Ex- mattress showrooms at 41512 Ann Arbor Road, Plym- appropriate category. Without complete information, Troy Community ecutive Warren Evans, Oakland County outh, and 1664 E. Sternberg Road, Muskegon. Web- your item will not run. Photos are welcome, but we Center, Troy. $32 Executive L. Brooks Patterson and Ma- site: artvan.com. cannot guarantee they will be used. Mike Bouchard: members; $36 non- comb County Executive Mark Hackel Oakland County members. Website: will discuss regional successes, issues sheri . leadershipoakland. and their plans to drive the Southeast com. Michigan region forward. e meeting ADVERTISEMENT SECTION will take place during the 2017 North WEDNESDAY American International Auto Show and NOV. 30 will also include the unveiling of the HEALTH CARE Michigan’s Private Higher Ed: A Power- 2017 Detroit News Readers Choice ful Workforce Generator. 11:30 a.m.-1:30 Award winners. Cobo Center. $45 p.m. Detroit Economic Club. A lack of members; $55 guests; $75 nonmem- public funding and the resulting eco- bers. Website: econclub.org. nomic reality are forcing private higher education institutions to be responsive 60 Minutes to Success: Connecting to student demands and employer Business to the Education Pipeline. 3:30- needs. Speakers include Stephanie 4:30 p.m. Jan. 17. Automation Alley. Bergeron, president and CEO, Walsh Col- Learn about the business bene ts of MI lege; Virinder Moudgil, president and Bright Future, a program created by the ADVERTISING & CEO, Lawrence Technological University; Workforce Intelligence Network that con- MARKETING and Keith Pretty, president and CEO, nects regional employers with local stu- Northwood University. MotorCity Casi- dents. Speakers include Sarah Sebaly, no Hotel, Detroit. $45 members; $55 senior program manager, and Lisa Gor- Je rey H. DeClaire, MD guests; $75 nonmembers. Website: don, program coordinator, MI Bright Medical Director, Department of econclub.org. Future. Automation Alley, Troy. Free. Contact: rivarde@automationalley. Surgery, director of the Orthopedic UPCOMING EVENTS com. Adult Reconstruction and Joint Re- MichAuto’s Annual Meeting: The Con- placement Program at Crittenton vergence of Auto and Tech in Michigan. 4 Ten Key Questions for Leaders: Moving Hospital Medical Center p.m. Dec. 8. Detroit Regional Chamber. From the Urgent to the Important. Discussion on how culture is a critical 8-10:30 a.m. Jan. 20. Marketing and DeClaire LaMacchia success factor for Michigan and its au- Sales Executives of Detroit. Priscilla Orthopaedic Institute. tomotive industry to evolve, grow and Archangel, president of Archangel & As- Moira DiJulio Je rey H. DeClaire, M.D., has been compete. Automotive Hall of Fame, sociates LLC, talks about the key im- Senior VP, Customer- appointed to the position of medical Dearborn. Free for members; $50 non- portant questions that, if properly ad- members. Contact: Sarah Nagel, dressed at individual, team and Centric Strategies director, Department of Surgery, and director of the Orthopedic Adult phone: (313) 596-0384; e-mail: snagel@ organizational levels, will strengthen Phoenix Innovate Reconstruction and Joint Replacement detroitchamber.com. your company’s e ectiveness. Manage- Phoenix Innovate, Troy, MI has added Moira Program at Crittenton Hospital Medical ment Education Center, Troy. $45 DiJulio, Senior VP, Customer-Centric Center. This new role will be key in the inGAGE Role Model and Investor Series members; $60 nonmembers. Website: Strategies to its Marketing Services team. strategic development and operational With Gwen Jimmere. 7:30-9 a.m. Dec. 8. www.msedetroit.org. DiJulio joins Phoenix Innovate from improvement of the service line. Dr. Inforum. Jimmere, founder and CEO of agencies in Baltimore, MD with a successful DeClaire’s responsibilities will include Naturalicious and co-founder of Pitch 2017 Technology Industry Outlook. track record launching new brands and onboarding of new surgeons, increasing Proof, shares her entrepreneurial jour- 8-11 a.m. Feb. 13. Automation Alley. e leading the strategic planning, research and e ciencies, process improvement, ney as the rst African-American wom- 2017 Technology Industry Report will data-driven marketing e orts for national ensuring high-reliability outcomes for an to hold a U.S. patent for a natural be unveiled as Automation Alley sur- brands. She has solved complex marketing patients. hair care product. Comerica Bank, Li- veyed technology and manufacturing problems for clients such as: Blue Cross/ vonia. Free. Website: inforummichigan. executives from Southeast Michigan Blue Shield, Career Education Corporation, org. and across the country to determine Harrah’s Casinos, and Spirit Airlines. their knowledge of Industry 4.0, or the Hyper-Partisanship and the Changing fourth industrial revolution, and NON-PROFIT Nature of News. 11:30 a.m.-1:30 p.m. whether they are ready for coming ENGINEERING Dec. 12. Detroit Economic Club. Mark changes in the manufacturing industry. Thompson, president and CEO of e Detroit Institute of Arts, Detroit. $25 & CONSULTING New York Times, will discuss the corro- members; $45 nonmembers. Email: Mark Roberts sion of language and debate, which he [email protected]; phone: Senior Director of identi es as a particular challenge for (800) 427-5100. Jennifer L. Chehab Resource Development news publishers. MotorCity Casino Ho- Senior Project Manager Detroit Regional tel, Detroit. $45 members; $55 guests; Fleis & VandenBrink Chamber $75 nonmembers. Website: econclub. org. Jennifer Chehab, PE has As senior director of Calendar guidelines. Visit joined our Farmington Hills resource development, Roberts will advise crainsdetroit.com and click “Events” o ce. She is a strong client leadership on all matters related to Earning It: A Conversation With Pulit- near the top of the home page. Then, . 7:30-9:30 advocate having led municipal infrastructure philanthropy and membership growth. zer Prize Winner Joann Lublin click “Submit Your Events” from the a.m. . Inforum. Lublin, author of projects for over 20 years throughout metro Roberts is a fundraising professional with 20 Dec. 13 drop-down menu that will appear. Fill Earning It: Hard-Won Lessons From Detroit and surrounding areas [including the years of experience at hospitals and out the submission form, then click Trailblazing Women at the Top of the cities of Warren, Clawson, Troy, Utica, Royal universities. Most recently, he served as the “Submit event” at the bottom of the Business World, will share insights from Oak, Sterling Heights, the Village of Bingham senior director of development at Wayne page. trailblazing executive women who Farms]. Her primary focus will be in design State University’s College of Engineering broke the corporate glass ceiling and More Calendar items can be found at and management of municipal utilities, where he was responsible for the strategic reached the highest rungs of the corpo- crainsdetroit.com/events. infrastructures, road projects and site planning and execution of a $40 million rate ladder — most of whom became designs. campaign. CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 15 November 28, 2016 CRAIN’S DETROIT BUSINESS Page 15
“We think the river, community … you’ll see. GILBERT anything along By the end of the year? JOB MARKET FROM PAGE 3 Woodward, starting to On Hudson’s or the whole thing? GM tech people from Austin? Hudson’s. No. go west into Corktown, What we’d like to do is be sure we FRONT PLACE Microso ? Capitol Park. I’m not have this gap lled. We are not going I don’t know. Could be. ere sure oce stu would to make a killing — at least not the POSITIONS AVAILABLE INDUSTRIAL SERVICES could be another one, too. Has that be over there, but more near, short-term, the rst ve or 10 C.W. JENNINGS been reported? (Aside, to public rela- residential or smaller- years, on any of these buildings. And INDUSTRIAL EXCHANGE tions sta ) Have you guys seen that you don’t have to be, and I think peo- type uses, more Global Industrial Consulting in the clips anywhere? It might not be boutique oces, stu ple know that. We don’t sit there with them. spreadsheets saying we need X re- Senior Associate Director/ Construction • Acquisitions like that.” Dan Gilbert Exporting • Financing The Microso thing? It’s kind of turn. What we just don’t want to have Business Development (855) 707-1944 been rumored for several years. They is a bleed with negative cash ow and University Communications. The Associate are in Southeld now, in the Town Cen- has to — they (lawmakers) have to have that depress the whole market. Director position leads the business development team within University ter. know that he’s going to be there and So we look to just get a few percent Communications, spearheading the growth So your question is, why is the not veto something. above par, at least at the beginning. of and maximizing outcomes from CMU’s REAL marketplace … There are really only a handful, may- You can run numbers all day. First of partnerships with business, industry, and non-profit and governmental organizations Yeah. be two or three, really prime pieces to all, we only occupy 37 percent of our and agencies. The Associate Director is Because there was such a glut of build downtown anymore, two of which buildings. irty-seven percent. responsible for developing, planning and ESTATE o ce space, plus the price of the you control. What about the riverfront? at’s it. Even with our growth and implementing a comprehensive outreach plan to leverage the university’s assets AUCTIONS buildings and the price per square As far as new building, is that some- everything, we have to have others, and offerings, strengthening existing foot went to such a low … and the thing you’re interested in? and they are not going to pay above business relationships and forging new ones in order to generate enrollments. GOVERNMENT AUCTION construction costs kept going like We are, and others are as well, as what they will pay. Leadership skills, a collaborative, this (up), I would argue the same you know. ... We think the river, any- So is it going to be 60 stories? Hud- goal-oriented mindset and an thing if I didn’t know all the stu and thing along Woodward, starting to go son’s? entrepreneurial spirit are a must. Required: Bachelor’s Degree and three years of experience. Because how does that west into Corktown, Capitol Park. I’m I don’t know the exact number. I relevant work experience related to the make sense? Because less supply, not sure o ce stu would be over really don’t. duties and responsibilities of this position, rates go higher, but there is a gap be- there, but more residential or small- preferably in business outreach and Close to that? development, sales, marketing or cause it’s not that easy to take people er-type uses, more boutique o ces, I don’t know. I’m trying to think. communications. Prior budgeting and 36.35 - ACRE who are used to paying $19 … espe- stu like that. But we at-out need. … Look, if you’re going to build there … supervisory experience, with proven cially when there is space in the sub- Let me give you an example. We have what do you call that in business experience in leading a team to FORMER MILITARY SITE quantifiable outcomes. Excellent NEWPORT & TELEGRAPH RD. urbs, too. We wouldn’t go there for net — not just Quicken, but the fami- school? communication, relationship management NEWPORT, MICHIGAN competitive reasons; we would go ly of companies — we have net gain, I don’t know — I didn’t go there. and customer service skills, including the ability to rally others around opportunities there because we just don’t have year-to-date in 2016 of 2,000 new Economies of scale. U.S. GENERAL SERVICES to build new partnerships required. For a ADMINISTRATION (available space) and we want to put people; 250 square feet, on average My degrees are in poetry, I don’t complete list of requirements and to apply everything in Detroit. e average (per employee). We use less than the know these things. online please visit www.jobs.cmich.edu CMU is an AA/EO institution, providing person could still take empty space average. We put more people in. Jim- You’d be a great businessperson equal opportunity to all persons, including RICH BALSANO there. … In other words, they could my (Ketai) tries to squeeze as many then. minorities, females, veterans, and 312-353-0302 say, “I could pay $25 or $27 (per people. It’s probably between 200 individuals with disabilities What’s your sense on the report (on (see www.cmich.edu/ocrie) realestatesales.gov square foot) in Detroit, but I’m not and 220 (square feet per person) the jail site) that just came out? going to pay $40, even though it’s when you take into account corri- Everything is happening the way it new.” ere is a period of time I think, dors, lobby, conference rooms. at’s was supposed to happen. When we MISCELLANEOUS to move the market, when you need 400,000 to 500,000 (square feet). We, went in originally, we proposed that COMMERCIAL some incentive thing that only helps ourselves, just one business, not even the consultant that they end up us- SURVEY the state on a net basis. If I’m the in one year, we occupy 400,000 to ing, that we would both use it togeth- LAND AUCTION state, I’m not approving it either, by 500,000 more feet of space in Detroit. er, that that would be the best, unbi- ANALYZE the way; you have to have a tangible at’s what I am talking about. We ased way of doing it so we wouldn’t net gain. Have you seen it? would like to do that next year. Rock sit there and have to have ours say Thurs., Dec. 8th at 4pm MATCH Yeah, I’ve seen it. (The legislation al- Connections (a Gilbert-owned strate- this, and theirs say this, and then ev- 0 Grand River Ave - Brighton, MI lows the capture of state sales and in- gic marketing company specializing erybody would argue who’s right and Prime land for development in Brighton! come taxes to help pay for major rede- in call center services). You know who’s wrong on a line-item basis. So 2.3± acres zoned Commercial/Local Business! With 350+/- feet of frontage, velopment projects.) It starts at $500 Rock Connections? we said, how about this? We’ll pay LW·VWKHSHUIHFWORFDWLRQIRUDQ\PHGLFDO million in the city proper, if I remember They are going in the old PwC build- half and you pay half and get one un- professional or business. Located across the street from Encore Village, right, but in other areas it’s a lower ing. biased, third-party consultant and let a planned 150 Acre/555 unit residential threshold. ey are absolutely booming, get- them go in and analyze the cost; not CrainsDetroit.com/JobConnect | FRPPXQLW\RIIHULQJDVVLVWHGOLYLQJ Based on population. It’s called ting business from everywhere. And only the cost on what it would take to DSDUWPHQWVDQGVLQJOHIDPLO\GZHOOLQJV Available curb cuts on Grand River and “transformational,” (projects) and this is the greatest job ever for Detroi- complete the jail, but also the cost to Call Us For Personalized 5LFKDUGVIRUHDV\DFFHVV$SKDVH there is a formula they use. And then ters who don’t have college degrees move onto the alternative sites and DQGVXUYH\DUHDYDLODEOHXSRQUHTXHVW Service: (313) 446-6068 Located just off I-96 and East of US-23 there is a limit on a statewide basis or maybe don’t have high school de- then what the decit is and all that on Grand River. how many projects a year, and there’s grees. I’ve been saying this about call stu . ey (commissioners) said FAX: (313) 446-034 7 Auction Held Off-Site at a limit on each city, I think, too. centers for years now. Hire some- you’ve got to have your own consul- E-MAIL: cdbclassified @crain.com Alexanders Land & Sea Grill: 10180 There are some that are $25 million, body, if they can talk, show up on tant. So after they had already or- INTERNET: Grand River Ave, Brighton, MI which would be transformational for time, wear a tie, come in to work, get dered … we were like three weeks www.crainsdetroit.com/section/classifieds SOLDBYBETHROSE.COM them, versus $500 million for Detroit, $12 an hour plus full, great benets, behind them, and we did hire one, an 419.469.1819 See Can’t Attend Our Auction? | Bid On Our App! say. the good ones move up and can do outside third party that’s going Crainsdetroit.com/Section/Classifieds We need to have stakeholders. Quicken Loans-type banking jobs, through, and we’ll be there in a few ere is no way we are going to get and even if they don’t, it’s not a bad weeks. Now we are going to compare for more classified advertisements this through the Legislature without start, compared to … I always look at theirs to ours. Ours is determining really having a statewide coalition like two, three industries. What’s go- exactly how much it would cost to based on the state Legislature. We ing to help the Detroiters where it’s build what they want to build some- were sort of surprised to talk to Sagi- not happening, they are not going to where else, as well as the other build- The Crain’s reader: naw and Flint and even Marquette. college, or they dropped out of high ings they would move, and then see if ere are people that are sort of in school and they do want to work. A there is a decit, which there will be, 29.2% are with companies the same situation on a smaller scale call center is a great place. ey got and how much of that can be eaten who really think this is really going to like 700 people. ey just moved in up by the cost of buying the land and contemplating moving/ kickstart their cities. there, and they are out of space like any other creative ways to make this What’s your read on the appetite or six months ago, and they are out of happen. expanding. Help them the ability of the Legislature to really space. Before January, is that going to hap- approve that this year? Why not make Hudson’s all oce pen? fi nd you by advertising in It’s a long, complicated process and move all your employees in there? I do believe, in this case. Look, you right now — a lot of moving parts to I think what you’re saying is right, never know in politics and with holi- Crain’s Real Estate section. it. We had it come out of the Senate but there is Hudson’s, and then days, but my gut is that one way or committee, so the next step is to get there’s the other ones. We have about the other, this thing will probably to the Senate oor, then the House ve or six of them ready to go here. come to a head by New Year’s Day. 313.446.6086 • FAX: 313.446.034 7 committee and then the House oor. We have plans for residential, o ce, Kirk Pinho: (313) 446-0412 E-Mail: cdbclassif [email protected] en the governor, too. e governor some stu that’s very, very needed — Twitter: @kirkpinhoCDB 16 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 30 percent of Medicare fee-for-service troit. in the second year of the program in nursing homes or rehabilitation cen- MEDICARE payments to providers will have some At DMC, surgeons in 2015 per- terms of provided services, Harkaway ters, and home health services. FROM PAGE 3 risk attached, and by 2018, more than formed 342 total hip and knee re- said, St. Joseph’s has only received “My belief is that this model is the whether St. Joe’s and DMC will actu- half. e program would put about placements. So far this year, DMC data up to the fourth quarter of 2015. right way to proceed because it forces ally pro t — through shared saving $1.2 billion in Medicare spending in has been able to reduce hospital re- “We might be doing very well now. all pieces of the health care to coordi- arrangements — and improve quali- the new bundles in 2016, and that g- admission rates for those proce- We just don’t know because we don’t nate care, but there are many chal- ty for patients in the program, it is ure would grow to $2.9 billion in epi- dures to 8.8 percent from 10.6 per- have current data,” Harkaway said. lenges,” Ucar said. clear that patients will be better sode spending in 2020. CMS projects cent in 2015. Since early 2015, St. Joseph’s ve For example, of the 90 days that served as the hospitals now have - to save the Medicare program $343 By coordinating care more e ec- hospitals have completed 2,981 epi- hospitals are responsible for care for a nancial incentives to lower costs and million over ve years. tively, recovery at skilled nursing sodes of care. St. Joseph Livonia has hip replacement, 70 to 80 days could monitor patient care outcomes and For example, a 90-day episode of home average days dropped to 14 been the busiest, with 1,023 proce- be care in the home, rehabilitation events for 30- to 90-day episodes, de- care for total joint replacement — hip from 21 days; and home health visits dures completed, including 270 heart center or nursing home. pending on the procedure. or knee — could include the hospital also dropped to seven per episode failure and 210 major lower joint re- “Managing and stabilizing that pa- As of July 1, the U.S. Centers for stay, physician services, outpatient from 14. placement. tient in their home with a patient’s pri- Medicare and Medicaid Services an- care, home health, post-acute facility “We are on a hot streak,” said Res- St. Joseph Livonia’s 12 bundled care mary care physician or home health nounced that more than 560 hospi- services and readmissions. e goal is tum, using a baseball metaphor. projects underway include heart at- nurse will avoid a very costly rehospi- tals and physician group practices, to create nancial incentives that en- tack, cellulitis, heart failure, diabetes, talization or emergency visit,” Ucar along with 650 skilled nursing courage providers to coordinate care, Mixed results joint replacement, other respiratory, said. homes, 97 home health agencies reduce unnecessary services and ex- other vascular surgery, red blood cell But Ucar said the critical period and nine rehab facilities were partic- pand initiatives that help patients re- At St. Joseph Mercy, Paul Harkaway, disorders and transient ischemia, also starts with the hospital discharge plan ipating in the second phase of the cover quickly. M.D., chief accountable care organiza- known as a mini-stroke. and the rst ve days either in rehab, BPCI program. “We have seen substantial cost tion development o cer, said each of Harkaway said the focus is to make nursing home or home care. Starting with an acute-care hospital savings, far below the cost thresh- the ve hospitals in the system has sure post-acute care services are used “We are the group that works with stay, the “model two” bundled pay- old,” said Bill Restum, CEO of DMC rolled out di erent bundles and uses on time and with an e ort to reduce them at home to stabilize that patient,” ment program now covers 48 di erent Rehabilitation Institute of Michigan di erent approaches. hospital readmissions and ER visits. Ucar said. “We work closely with the clinical episodes of care. ey include and system executive for post-acute Overall, the results are mixed, he “In cases where you own the nurs- primary care physician to schedule to heart failure, joint replacement, stroke, care. said. Some bundles have too few pa- ing home and the hospital, you see appointment as quickly as possible.” cardiac bypass surgery and pacemak- Restum said DMC has been able tients enrolled, and other bundles are savings at the hospital but lose reve- Other critical providers to work er replacements that all essentially will to coordinate care and lower costs by a ected by di culties in post-acute nue at the nursing home,” he said. “We with include the home health agency, be paid in a single, or bundled, pay- 20 percent for the hip and knee re- care coordination, Harkaway said. have decided if it means losing vol- for nursing, therapy and personal care ment. ey account for about 70 per- placement cost per bundle based on “It is too early to make any conclu- umes in nursing homes, bring it on. needs; pharmacy, to make sure medi- cent of Medicare spending. Medicare’s target price. sions,” he said, noting that some bun- We want to provide better care.” cations are being properly adminis- e “model three” program also e average Medicare payment dled payment episodes are going well tered; and durable medical equip- starts with a hospital stay, but begins at for surgery, hospitalization and re- and others might be scaled back due Outside care ment, including walkers or oxygen. a nursing home, rehabilitation facility, covery ranges from $16,500 to to lack of patient volume. “All of that is overseen by a nurse long-term care hospital or home $33,000 for hip or knee joint replace- “Financial performance has been Ali Ucar, CFO of Care Solutions care manager who is in touch with the health agency. ere is a “model four” ment, CMS said. Detroit’s average mixed at best, probably not as been Group LLC in Royal Oak, said there are patient at all times,” Ucar said. “What for select episodes that covers care 30 cost for a total knee was $36,000, hoped,” Harkaway said. “We hoped for many challenges with Medicare’s happens in the home is where all the days after discharge, but only 10 hos- while Grand Rapids was $30,000 in quicker results.” bundled payment program, but the action is.” pitals remain in that model. 2015; a total hip averaged $28,000 in One of the problems with the pro- key for hospitals is to work closely with Jay Greene: (313) 446-0325 By 2017, Medicare estimates, about Grand Rapids and $35,000 in De- gram is the lack of timely data. While post-acute care providers, including Twitter: @jaybgreene
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*Based on distribution and potential readership CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 17 spirit in business practices. RIZZO “We already have service in Wind- FROM PAGE 3 sor, Ontario and Sault Ste. Marie, On- a previous award to the trash hauler, tario, right across from Sault Ste. Ma- which Toronto-based GFL (which rie, Michigan — so it was a logical stands for Green for Life) acquired place to start in the U.S. market and an Sept. 30 in a deal valued around $300 opportunity presented itself when Kin- million. derhook (Industries, a New York pri- Dearborn Heights and Richmond vate equity rm) decided they wanted Township also penned new deals to sell,” he said. “It just made sense for with GFL in recent weeks, as did the us, and culturally we saw a lot of simi- Southeastern Oakland County Re- larity between the business we bought source Recovery Authority on behalf and the business we own.” of Hazel Park, a SOCRRA member. Kinderhook, managed by metro Dearborn has an upcoming study Detroit expatriates Robert and Chris- committee hearing and will consider tian Michalik along with others, man- a possible GFL contract as well. ages more than $2 billion of commit- Still, a house-cleaning is under- ted capital and more than 140 way — even though Dovigi is doubt- investments. e private equity rm ful it will uncover a systemic or com- had acquired a stake in Rizzo in 2012. panywide problem. GFL has retained Dovigi said he was actually Kinder- an out-of-town law rm and initiat- hook’s rst call, to shop the Michigan ed a forensic audit of the new U.S. business in which it was the largest subsidiary, and a comprehensive shareholder. A review of Rizzo’s books targeted screening of all company suggested then, and still does, that it employee emails, to reassure inves- lands contracts largely by being reli- tors and customers it’s addressing able and competitive on price. the scandal. en came the news, two weeks Departing Chester eld Township after the deal closed, that Rizzo was Supervisor Michael Lovelock was ar- “Company A” in an ongoing investi- rested this month and taken to fed- gation of what the FBI calls public eral court, becoming the third public corruption in “multiple municipali- o cial to face criminal charges for ties in Southeast Michigan, primarily taking alleged bribes from a Rizzo Macomb County.” employee. Lovelock, 57, is accused Dovigi said the management has of accepting more than $30,000 be- had multiple conversations with tween 2010 and earlier this year. Kinderhook since then, but he was While the audit is still underway, “not sure they shed any new light” Dovigi said he is con dent in the for- about when the corruption investi- mer Rizzo workforce — including gation began. He says his company former COO Je Rizzo, who remains still enjoys a good relationship with as regional vice president of GFL’s Kinderhook. U.S. subsidiary, and in father Chuck He also said he is still not certain Rizzo Sr., who continues to consult Rizzo Jr. is “Cooperating Human and oversee some training at the Source 1,” the contractor employee company. who helped gather evidence for the FBI against Lovelock and two other New in town public o cials in Clinton and Ma- comb townships. But there are no But Dovigi, 37, who grew up in plans to ask other Rizzo employees Sault Ste. Marie, Ontario, and to leave, unless the audit or employ- Presented by: stepped in to manage the U.S. sub- ee email screens reveal something sidiary after former Rizzo CEO new. FREE Webinar Chuck Rizzo Jr. resigned in late Octo- “With Chuck (Jr.), there was just ber, said there is still much to do. too much noise around it. ... And e company said its doors are that’s why the decision was made” open to cooperate further with law en- for him to resign in late October, forcement, and Dovigi has been fur- Dovigi said. nishing references from the parent Getting Your Foot company’s government customers New beginnings? across Canada to reassure Michigan o cials about how it does business. But GFL isn’t done expanding in the Door: He also expects to continue in into the U.S. market, and it has its eye Michigan well into next year, and on new acquisitions and new mu- there are no immediate plans to nicipal and commercial contracts. Practical Advice search for Rizzo Jr.’s successor. e U.S. subsidiary could enter four All this problem-solving and crisis states of the Upper Midwest within from Two management is a far cry from Dovi- ve years, Dovigi said, adding new gi’s days in minor league hockey, services as it goes. Purchasing and as an NHL draft pick in 1997 by e company also expects to bid the Edmonton Oilers — or even his on a new contract with Huron Town- stint in corporate nance, through ship, which had voted Oct. 12 to Executives which he came to acquire a small switch haulers from Waste Manage- transfer station and four waste trucks ment to Rizzo but rescinded that de- in Vaughan, Ontario, in 2004. cision after the FBI case became Speakers: He founded GFL Environmental public. And the email sweep contin- Jason Hardy - EVP, Supply Chain Inc. in early 2007 and remains its ues, Dovigi said, to see if any em- president and CEO. e company ployees might have been aware of Management, Paslin has grown in large part through 57 bribes, kickbacks or other illicit deals Scott Mors - Head of Procurement acquisitions, boosted in part by an with local o cials. and Supply Management, Wednesday, Dec. 7 infusion of private equity capital in “We won’t be satis ed until we’ve ThyssenKrupp System Engineering 2010. done an exhaustive search,” he said. 12-1 p.m. “But if you talk to the workforce here The long haul and the communities we serve, it doesn’t sound to me like it’s going to e most recent of the acquisi- be a widespread thing.” Register at crainsdetroit.com/webinars tions is Rizzo, in which Dovigi Chad Halcom: (313) 446-6796 Powered by: thought he saw a kind of kindred Twitter: @chadhalcom 18 CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016
available for business, residents and GORES entrepreneurs in Flint a ected by FROM PAGE 1 the crisis. “I think the relationship that he As part of the Pistons deal, the www.crainsdetroit.com has established with the Ilitch fami- team will build and rehabilitate 60 Editor-in-Chief Keith E. Crain ly, with (Ilitch Holdings Inc. President basketball courts throughout the city Group Publisher Mary Kramer, (313) 446-0399 or [email protected] and CEO Christopher Ilitch) in par- at a cost of $2.5 million over six years, Associate Publisher Ron Fournier, (313) 446-1674 or ticular, and also with Dan, I don’t plus donate $100,000 to the Detroit [email protected] know there is going to be a lot of Workforce Solutions Corp., a city Editor Jennette Smith, (313) 446-1622 or [email protected] competing with him in the middle,” workforce development initiative. It Director, Digital Strategy, Audience Development Bing continued. will also host free youth basketball Nancy Hanus, (313) 446-1621 or [email protected] “I think Tom is looking to make camps and give away 20,000 free Pis- Managing Editor Michael Lee, (313) 446-1630 sure that he is on the good side of tons tickets each year to Detroit resi- or [email protected] Managing Editor/Custom and Special Projects Daniel both those guys, and they’ll be look- dents. Duggan, (313) 446-0414 or [email protected] ing at doing things together. In some Bing, an NBA legend who played Assistant Managing Editor Kristin Bull, cases, he may be with the Ilitch fam- for the Pistons in the 1960s and (313) 446-1608 or [email protected] Digital Editor Carlos Portocarrero (313) 446-6056 or ily on certain projects; on other proj- LARRY PEPLIN 1970s, said Gores “seems to be genu- From le§: Detroit Mayor Mike Duggan, Ilitch Holdings Inc. President and CEO [email protected] ects, he may well be on the other inely concerned about what’s hap- News Editor Beth Reeber Valone, (313) 446-5875 Chris Ilitch and Pistons owner Tom Gores at last week’s announcement at Cass side. But I don’t think he wants to get pening in Detroit and ... I think it or [email protected] Technical High School. Senior Editor Gary Piatek, (313) 446-0357 in the middle and create any friction goes way beyond just owning the or [email protected] at all.” Pistons, which is a good thing.” Research and Data Editor Sonya Hill, (313) 446-0402 at thought was shared by Rob- e bond re nancing takes bonds companies he bought on the cheap “I promised you I would try to be or [email protected] Newsroom (313) 446-0329, FAX (313) 446-1687, ert Forsythe, dean of the Wayne State issued in 2014 in support of the are- and then sold for a healthy pro t, impactful, and I’m doing the best I TIP LINE (313) 446-6766 University Mike Ilitch School of Busi- na construction and issues new and you’ll get a picture of a civ- can to be impactful,” Gores said at REPORTERS ness that is getting a new building bonds at a higher amount, with a ic-minded businessman who is re- the Tuesday press event. Marti Benedetti General assignment (313) 446-0416 or across from the arena. lower interest rate and longer term. ceptive to feedback and shies away He paid $325 million for the Pis- [email protected] “I think they are all looking after, A DDA spokesman said neither from micromanaging. tons and PS&E in 2011, adding to his Jay Greene, senior reporter Covers health care, insurance, energy, utilities and the environment. from talking to both (the Ilitch and the city nor the state would be re- He also hires strong, capable dep- business interests that, according to (313) 446-0325 or [email protected] Gilbert) organizations, they really sponsible for repaying the bonds, uties, such as Tellem, who are “some Forbes, today include more than 25 Chad Halcom Covers litigation, the defense industry, have a lot of respect for one another, even if Olympia or Palace Sports of the most intelligent and sophisti- companies with about $6 billion in education, Macomb and Oakland counties. (313) 446-6796 or [email protected] and I don’t see there is going to be a failed to pay their obligations. cated” minds in their elds, said Eric assets through his Los Ange- Tom Henderson Covers banking, nance, technology lot of con ict there” for Gores, a e DDA has touted that the move Larson, CEO of the Downtown Detroit les-based private equity rm Plati- and biotechnology. (313) 446-0337 or Michigan State University graduate. will bring hundreds of millions of Partnership. num Equity, which he started in [email protected] Kirk Pinho Covers real estate, city of Detroit. (313) Tellem said there is a “common dollars in economic bene ts, mak- Gores, who was not available for 1995. 446-0412 or [email protected] spirit” among the billionaires: “It’s ing the costs of the public bonds, an interview, has described himself Current portfolio companies in- Bill Shea, enterprise editor Covers media, advertising not about egos; it’s about what which are paid out of taxes captured as well-grounded. clude South eld-based Chassix and marketing, the business of sports, and transportation. (313) 446-1626 or [email protected] makes business sense and what is in the DDA district, a cheap price to “I understand if I’m the CEO I’ll Holdings Inc., a maker of a wide range Lindsay VanHulle, Lansing reporter. (517) 657-2204 right for the city.” pay. do my job, but I’ll never confuse that of auto parts; Chicago-based Ryer- or [email protected] But the deal has already drawn with humanity,” he told C-Suite son, which makes and distributes Dustin Walsh, senior reporter Covers the business of law, auto suppliers, manufacturing and economics. It’s about the bonds re for why any public nancing is Quarterly in 2011. “If I’m in a confer- metal sheet, coil and plate products (313) 446-6042 or [email protected] needed with so many billionaires in- ence room and I need to lead a through service centers in North Sherri Welch, senior reporter Covers nonprots, On Tuesday, Gores, Ilitch, Detroit volved. And public nancing for pro meeting, I’ll do it. In the meantime, if America and China; Litch eld, Ill.- services, food and hospitality. (313) 446-1694 or [email protected] Mayor Mike Duggan and NBA Com- sports teams has long been criticized I’m in the regular world, I’m a regu- based Schutt Sports, which makes missioner Adam Silver sat on a stage by many economists and others who lar guy.” football, baseball and softball equip- ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 in Cass Tech, the under-construction question its actual economic payo . Cli Roesler, a partner in the Bir- ment; and Je erson, Ind.-based Advertising Director Matthew Langan arena in view from the sixth oor as “Governments often do more mingham-based investment bank- American Commercial Lines, which Senior Account Manager Katie Sullivan the men praised each others’ work to harm than good by providing subsi- ing rm Angle Advisors-Investment transports dry and liquid cargo by Advertising Sales Christine Galasso, Gerry Golinske, Diane Owen, Sarah Stachowicz broker the deal to bring back to De- dies of any sort to private enterpris- Banking LLC, praised Gores for his barge on the U.S. inland waterways Classied Sales Manager Angela Schutte, troit the franchise, which Forbes most es. Nothing about the Pistons’ move skill at doing corporate carve-outs, and provides shipbuilding and re- (313) 446-6051 recently valued earlier this year at to Detroit should be subsidized by which are deals that can be dicult pair services. Classied Sales Lynn Calcaterra, (313) 446-6086 Marketing/Events Director Kim Winkler $850 million. taxpayers,” said Michael LaFaive, di- to bring to fruition because they fre- Beauregard, of Huron Capital Events Manager Kacey Anderson ey also lauded the economic rector of the Morey Fiscal Policy Ini- quently involve underperforming Partners, said Gores’ move re ects a Senior Art Director Sylvia Kolaski impact they expect the move will tiative at the Mackinac Center for Pub- business units that buyers may be shifting tide in the city. Marketing Manager Marilyn Banes bring to Detroit, saying it will be lic Policy, a conservative think tank. reluctant to invest in. “Having the Pistons downtown is Special Projects Coordinator Keenan Covington Sales Support Suzanne Janik hundreds of millions of dollars and “His real start was in corporate another link in what has become a Production Manager Wendy Kobylarz bring jobs (based on a PS&E-com- Being impactful carve-out transactions. He was a pio- fantastic chain,” said Beauregard. “I Production Supervisor Andrew Spanos missioned study by the University of neer and was among the rst in that was speaking at a panel in Houston CUSTOMER SERVICE Michigan) to a city that desperately e turning point in negotiations segment of the PE market,” Roesler two months ago, and after the panel Main Number: Call (877) 824-9374 or [email protected] needs and wants them. to bring the Pistons to Little Caesars said. “ rough Platinum he has people asked me where Huron was Subscriptions $59 one year, $98 two years. Out of state, e agreement, which was tenta- Arena came this spring, when Gores demonstrated time and again that or- based. I’d say Detroit and they’d say, $79 one year, $138 for two years. Outside U.S.A., add $48 tively approved by the Downtown De- met with Ilitch and his parents, Mike phaned assets can be turned around. ‘ at's the cool city now.’ ” per year to out-of-state rate for surface mail. Call (313) 446-0450 or (877) 824-9374. velopment Authority board and still and Marian, in the District Detroit e result of this specialty is often Kirk Pinho: (313) 446-0412 Single Copies (877) 824-9374 requires nancing and other ap- Preview Center in Comerica Park. jobs being saved and value being cre- Twitter: @kirkpinhoCDB Reprints (212) 210-0750; or Krista Bora at provals from the Michigan Strategic “ ey all came away feeling posi- ated from a deep hole. It's not easy Tom Henderson: (313) 446-0337 [email protected] To nd a date a story was published (313) 446-0406 Fund, DDA and Detroit City Council, is tive, and it really gave the negotia- and takes con dence, stick-with-it- Twitter: @tomhenderson2 or e-mail [email protected] made possible in part by $34.5 mil- tions a lot of momentum going for- ness and a terri c amount of energy. Crain’s Detroit Business is published by lion in public nancing from re - ward. Tom and Chris, this deal “Gores also knows that change Crain Communications Inc. nancing DDA bonds and up to $55 doesn’t get done without them forg- can be a motivating event. If you Chairman Keith E. Crain BANKRUPTCIES President Rance Crain million more in DDA-backed bonds ing a strong personal relationship,” look at his playbook, he uses change Treasurer Mary Kay Crain to be repaid by Palace Sports & En- Tellem said. to stimulate new thinking and e ec- e following businesses led for Senior Executive Vice President William A. Morrow tertainment. Gores made his billions xing tively change the storyline. It doesn’t protection in U.S. Bankruptcy Court Executive Vice President/Director of Strategic Operations Chris Crain work for everyone, but it seems to in Detroit Nov. 18-22. Under Chapter Executive Vice President/Director of Corporate work repeatedly for him.” 11, a company les for reorganiza- Operations KC Crain In addition, his charitable giving tion. Chapter 7 involves total liqui- Vice President/Production & Manufacturing Dave Kamis INDEX TO COMPANIES isn't for show, Larson said. dation. Chief Financial Ocer Bob Recchia These companies have signicant mention in this week’s Crain’s Detroit Business: “When Gores arrived back in Dynamic Control International Inc., Chief Information Ocer Anthony DiPonio Michigan, it was clear he was invest- 50490 Kayla Drive, New Baltimore, G.D. Crain Jr. Founder (1885-1973) Ascension Health Michigan 4 GFL Environmental USA 3 ing in the community without any voluntary Chapter 7. Assets and lia- Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Oces Avomeen Analytical Services LLC 7 Honigman Miller Schwartz and Cohn LLP 13 arm-twisting or pleading,” Larson bilities not available. 1155 Gratiot Ave., Detroit MI 48207-2732; Care Solutions Group LLC 16 KeyBank 13 said. Applied Computer Engineering, (313) 446-6000 His FlintNOW initiative, created 50490 Kayla Drive, New Baltimore, Cable address: TWX 248-221-5122 AUTNEW DET Colliers International 9, 10 Olympia Development of Michigan 1 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly earlier this year in the wake of the voluntary Chapter 7. Assets and lia- by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI Crittenton Hospital Medical Center 4 Ottawa Tower II LLC 9 48207-2732. Periodicals postage paid at Detroit, MI and additional water crisis in his hometown, bilities not available. mailing o¥ces. POSTMASTER: Send address changes to CRAIN’S Detroit Medical Center 3 Palace Sports & Entertainment 1 pledged to raise at least $10 million OM Shanti Med Spa, PLC by Ageless DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Detroit Pistons 1 Rizzo Environmental Services 3 for short-term and long-term recov- LLC, 29175 Ryan Road, Warren, vol- Contents copyright 2016 by Crain Communications Inc. All rights ery e orts. He also collaborated with untary Chapter 11. Assets and liabil- reserved. Reproduction or use of editorial content in any manner Forbes Frankel Troy Ventures LLC 8 St. Joseph Mercy Health System 3 without permission is prohibited. Huntington Bank to make $25 million ities not available. CRAIN’S DETROIT BUSINESS // NOVEMBER 28, 2016 19 THE WEEK ON THE WEB RUMBLINGS NOVEMBER 19-23 C-suite clowns: Detroit Digits with Zeeland-based furniture maker Trump picks Herman Miller and environmental rm Green Standards on a two-year e ort Parade pranksters A numbers-focused look at last to divert materials from land lls. Betsy DeVos as week’s headlines: J Detroit-based DTE Energy Co. com- education chief pleted installation of the largest solar $100,000 array in Ypsilanti. DTE said the hold loy day jobs The amount of the top awards resident-elect Donald Trump 2,520-panel array at Clark Road and postscript to America’s Visitors Bureau, announced the selection of won by two Detroit-based River Street will provide enough clean anksgiving Day Parade: 16 years. businesses, A Betsy DeVos, a prominent Detroit Training energy to power about 150 homes. Who was clowning around might J Matt Cullen, Pcharter school advocate from Michi- Center and Louisiana Creole surprise you. principal of gan, as his secretary of education. De- Gumbo, in the New Economy OTHER NEWS A who’s-who of local CEOs, non- Detroit-based ’s NEIdeas: Rewarding Vos leads the advocacy group Ameri- Initative J Developers broke ground for the pro t executives and philanthro- Rock Ventures Ideas for Business Growth can Federation for Children; her American Center for Mobility testing pists annually gather in downtown LLC, CEO of challenge. Thirty other small husband, Dick DeVos, is an heir to the facility for driverless vehicles at the Detroit at the Boll Family YMCA at Jack Entertain- businesses each won $10,000. Amway fortune and a former presi- site of the former General Motors Wil- 5:30 a.m. on anksgiving morning ment LLC and a dent of the Grand Rapids-area com- low Run plant in Ypsilanti Township, to don costumes and makeup as director of The Matt Cullen: 19 pany. $40.8 million AP reported. e $80 million center part of the Distinguished Clown Parade Co., 19 years on the march The estimated cost of a is to open next year. e Michigan Corps. years. in holiday parade. COMPANY NEWS redevelopment project at Joker Economic Development Corp. ap- e tradition began 33 years ago J Eric Larson, J Auburn Hills-based glass manu- Marchant Stadium, the spring proved a 15-year Renaissance Zone when then-CEO of Campbell CEO of Bloom- facturer Guardian Industries Corp. training home of the Detroit designation for the site. Ewald Tom Adams, and Walter Mc- eld Hills-based Larson Realty said its shareholders approved the Tigers in Lakeland, Fla. The J A plan for a $32 million extend- Carthy Jr., then chairman and CEO Group LLC, CEO of the Downtown sale of the company to KGIC Merger playing eld will be named Publix ed-stay hotel in downtown Detroit, of Detroit Edison Co., spurred the Detroit Partnership and immediate Corp., a subsidiary of Wichita, Kan.- Field, and a $20 million building the 110-room The Element Detroit, launch of the Distinguished Clown past chairman of e Parade Co. based Koch Industries Inc. Terms will house a new clubhouse, gained approval of a $6.5 million Corps as a way to personally in- board, 16 years. were not disclosed. Guardian, which administrative oces and more. performance-based loan from the volve the region’s leadership in the It’s a little-known fact that pa- employs about 17,000, was headed Michigan Economic Development parade. rade watchers can gure out how by Detroit Pistons owner Bill Davidson $52 million Corp.’s Michigan Strategic Fund. Met- Since then, more than 2,000 dis- long a clown has been marching by until his death in 2009. The agreed-upon payment by ropolitan Hotel Partners LLC, a joint tinguished clowns have marched the costume he or she wears, Cul- J Athletic apparel retailer Under Ar- Detroit-based Ally Financial Inc. venture of Detroit-based The Means in the parade. len said. mour Inc. announced it will open a to resolve all investigations and Group Inc. and Roxbury Group LLC, For the opportunity, the clowns e one-piece, stereotypical downtown Detroit store next spring. claims by the U.S. Department plans to redevelop the 91-year-old, make an annual donation, current- clown out t is sort of like the be- e new 17,000-square-foot Under of Justice related to residential long-vacant Metropolitan Building ly $1,000 for each person walking. ginner garb, and after ve years, Armour Brand House will be at 1201 mortgage-backed securities near Grand Circus Park. at’s added up to $5 million over clowns get a two-piece suit “which Woodward Ave. Baltimore-based issued by Ally’s former mortgage J Meadowbrook Country Club in the years. has obvious logistical advantages,” UA’s largest competitor, Ore- subsidiary, Residential Capital Northville has completed an exten- Some of the group’s lon- Cullen said. It’s half silver. gon-based Nike Inc., opened a Com- LLC, and its subsidiaries. sive $5.3 million renovation of its gest-serving corps members in- Members with 10 years in the munity Store on Woodward in May. golf course and plans to reopen it clude: Distinguished Clown Corps have J Sterling Heights-based Key Safety next May, club o cials said. e J Austin Kanter, owner, Kanter As- a costume that is half gold, Cul- Systems Inc. and Auburn Hills-based warming center. project has kept the 100-year-old sociates, and this year’s grand jest- len said, and after 15 years, “you automotive safety supplier rival Au- J St. Joseph Mercy Ann Arbor became course closed since October 2015. er of the Distinguished Clown get a cape that’s great in cold toliv Inc. are the nal two bidders for the ninth level-one trauma center in J e Michigan Department of Trans- Corps, by virtue of being the lon- weather.” troubled Japanese airbag maker Michigan as it received veri cation portation said it will close south- gest standing clown at 30 years. At 20 years, a milestone Cullen Takata Corp., a source familiar with from the American College of Sur- bound I-75 between Detroit and the J Maggie Allesee, philanthropist, will hit next year, clowns get a blue the deal told Crain’s. Takata and its geons to treat the most severely in- Downriver area early next year for 28 years. cape — and perhaps some other customers chose the two suitors over jured patients through multidisci- two years ofreconstruction. e $165 J Larry Alexander, president and secret advantages yet to be discov- competing bids from Flex-N-Gate plinary trauma care. million project includes repairs to CEO, Detroit Metro Convention & ered, he said. Corp. and Daicel Corp., which were J General Motors Co. said thousands the Rouge River Bridge. bidding with Bain Capital LP. of pieces of o ce equipment and J e Beach Boys are set to be in De- J e Michigan Economic Develop- furniture being discarded because of troit Jan. 13 to headline the charity ment Corp. is backing auto seat mak- renovations by the Detroit automak- preview of the 2017 North American er Adient Ltd. in its bid to move its er will be donated to institutions and International Auto Show. Tickets to Lear CEO to win Above & Beyond corporate headquarters to Detroit, organizations across Michigan, the Detroit Auto Dealers Associa- awarding the company a $2 million among them Detroit’s Cody High tion-organized event are $400 and Award from public safety group grant in exchange for 115 new jobs. School, AP reported. GM is working are available at charitypreview.com. Adient plans to spend $97.9 million Lear Corp. President restructure the city’s - to move its headquarters into the and CEO Matthew Si- nancial positions. It also city after being spun o from Mil- moncini is to be among supported renovation of waukee-based Johnson Controls Inc. those honored by the De- several city parks, recre- J Auto aftermarket accessories rm troit Public Safety Foun- ation programs, a Detroit Drake Automotive Group, a platform dation during the Fourth Public Schools program company of Detroit-based Huron Annual Above & Beyond that has brought paid tu- Capital Partners LLC, acquired Tyler, Awards Wednesday night tors from East English Vil- Texas-based Fender Gripper Inc., a at Cobo Center. lage High School to Clark El- maker of protective auto fender cov- e main aim of the Matthew ementary, and more than a ers. Terms were not disclosed. Above & Beyond Awards Simoncini: dozen local nonpro ts J New York-based Figure Skating in is to honor police, Among honorees and their work, including Harlem, a nonpro t that combines a re and EMS o cers this week. the Detroit Public Safety focus on education with the disci- who have demonstrated Foundation, and it recently pline of gure skating, announced a bravery, put their lives in opened a new innovation teaming with the Michigan Women’s danger, or those who are wounded center in Detroit. Foundation to bring its program for or killed in the line of duty. More e Detroit Police Department underserved girls to Detroit. than 50 o cers will be honored. will also be honored for Project J UAW-Ford donated $250,000 to ARCELORMITTAL TAILORED BLANKS Simoncini will receive the City Green Light, a public safety pro- help a Detroit nonpro t, the Pope ArcelorMittal Tailored Blanks, a subsidiary of Luxembourg steel producer Change Maker Award for leading gram that began in January and Francis Center, launch a food pro- ArcelorMittal, intends to spend $83 million to set up a manufacturing plant in the company in making a signi - uses a central camera system, gram for the homeless, AP reported. Detroit and create at least 120 jobs, the Michigan Economic Development Corp. cant, positive di erence in De- high-resolution cameras and e center is expected to serve up to said in approving a $2 million Michigan Strategic Fund grant. The company troit. bright lighting to capture clear im- 20,000 meals yearly. 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