Crain's Detroit Business, January 08, 2024 by Crain's Detroit Business

CRAINSDETROIT.COM I JANUARY 8, 2024

Ford Motor Co. plans to cut output of its electric F-150 Lightning pickup by half this year because of “changing market demand.” | FORD

EV speedbumps imperil projects Less than anticipated demand for electric vehicles saps Michigan’s battery manufacturing plans | By Kurt Nagl Michigan has committed around $5 billion worth of incentives over the past few years to electric vehicle and EV battery plants whose fates are now uncertain. The onshoring of EV battery manufacturing, driven by federal policy and the industry’s desire to tighten supply chains, sparked a bidding war across North America

MORE ON 2024 OUTLOOK Residential real estate outlook brightens. Page 8 More small, mid-market M&A expected this year. Page 10 Michigan Central among developments to finish in 2024. Page 11 The cannabis industry could clear its biggest hurdle yet in 2024. Page 12 The biggest issues facing banks in 2024. Page 13 to land what officials have called transformational economic devel-

opment projects. However, many of those projects have been scaled

down and delayed due to less than anticipated demand for EVs. It’s a reality check for Michigan, which has consistently been the highest bidder for EV-related projects. Several of its highly touted wins of the past year have lost some of their luster as the automotive industry’s shaky transition to clean energy leads to vehicle launch delays, reduced plant foot-

prints and layoffs across the state. To be sure, soft demand is not a death knell for EV adoption, said Mark Barrott, head of Southfield-based Plante Moran’s automotive practice. One of the primary challenges is that EVs still cost significantly more than their gas-powered counterparts. See EV on Page 16

Public events, pop-ups on tap for Joe Louis Greenway 29.5-mile pathway to see music, art, shopping along the route in 2024 By Sherri Welch

As construction of the 29.5mile Joe Louis Greenway moves forward this year, efforts to create a year-round calendar of attractions and local economic impact are also underway. The Joe Louis Greenway Partnership is developing a plan for activating the recreational pathway in consultation with neigh-

borhoods and entrepreneurs in them, Executive Director Leona Medley said. The plan for programs will include a combination of music, art and shopping, with local entrepreneur pop-ups along the route. It’s about “how do we use this amazing project to really mobilize that hustle that Detroit has always been known for?” Medley said.

“For 2024, look for increased activations on the greenway, opportunities to come out and connect with communities. . . .It will be new and unique.” The partnership activated the greenway for the first time for Halloween, inviting church groups to hand out candy, something that worked out well, Medley said. See GREENWAY on Page 17

The Warren Gateway trailhead on the border of Detroit and Dearborn, which opened in November, is among the first legs of the 29.5-mile Joe Louis Greenway to see new programs featuring local entrepreneurs. | CITY OF DETROIT FLICKR

WARM UP Ski resorts grapple with balmy start to season.

CONVERSATION Rebel Nell’s Amy Peterson on changing with the times.

REAL ESTATE RenCen towers’ new owner has a knack with troubled assets.

PAGE 3

PAGE 18

PAGE 4

Michigan vacation home market poised for another hot year are the co-owners of Michigan Homes and Cottages/Coldwell Banker Woodland Schmidt in Park Township, primarily serving the areas of Grand Haven, Spring Lake, Holland, Saugatuck and South Haven, though they’ve closed deals as far north as Manistee. They said lower interest rates, combined with a positive outlook for the stock market in 2024, led to “a great month” for them in December, with three vacation home sales that were expected to close by the month’s end.

By Rachel Watson

Realtors in some of West Michigan’s vacation hot spots say they expect sales activity to pick up in 2024 amid lower interest rates, flat or declining home prices, and improving financial markets. According to a Dec. 5 Redfin report, 2024 will be the year U.S. homebuyers finally catch a break, with new listings ticking up, home prices projected to drop 1% and home sales expected to increase 5% year over year. Realtor.com forecasts mortgage rates will be at 6.5% by year’s end, down from a high of almost 7.8% in 2023. Meanwhile, Lake Homes Realty’s winter 2023-24 lakefront real estate report forecasts that the number of lakeshore properties sold in the U.S. will jump 10% to 15% year over year in 2024, largely thanks to an increase in inventory.

Inventory optimism Several residential brokers who represent clients along Michigan’s west coast told Crain’s Grand Rapids Business that they are optimistic more properties will hit the market this year. Kyle Geenen, of The Geenen Group of Coldwell Banker Woodland Schmidt in Holland, rep-

This nearly 5,000-square-foot four-bedroom, four-bathroom house on Lake Macatawa in Park Township in West Michigan — known locally as the “Wedding Cake House” — is for sale for $2.4 million. | MICHIGAN HOMES AND COTTAGES

resents vacation home buyers and sellers primarily from South Haven and north to Grand Haven. He said that as is typical, December was a slow month for listings, but he’s seeing signs that will change in the new year. “Quite a few people have reached out and said, ‘In January, February, March we want to get our house on the market,’ and I would say it’s been quite an uptick from what we had the year prior,” he said. Donna Wilkens represents clients through Beacon Sotheby’s International Realty in Saugatuck and Jameson Sotheby’s in Chicago, closing deals from coastal

southwest Michigan up to Manistee. She echoed Geenen’s observation about inventory. “I think people are waiting, as is normal, to list their properties probably in mid-February, so my optimism is that we’re going to have some more inventory,” she said. “And you know, sometimes interest rates don’t affect the higher end (of the market), but I think having the interest rates under 7% will certainly be helpful.” Geenen said he’s having one of the busiest winters he’s ever had when it comes to buyer activity, and he projects a “very competitive market come spring.” Lauri Sisson and Kersh Ruhl

Multiple offers As interest rates taper down, Geenen said he believes sellers can look forward to the return of multiple offers per listing as was common early during the COVID-19 pandemic, when interest rates were in the 2%-4% range, and remote work drove a spike in demand from wealthy out-ofmarket buyers. “We just had a buyer submit an offer on a house that had eight offers on it, and then . . . I just sold a condo on Lake (Macatawa) and it’s listed at $685,000 and we had three offers on that, all cash,” he said. Wilkens said even though inventory and multiple offers may pick back up, Sotheby’s is giving

its Realtors guidance to be cautious with pricing. “This is not the time to overprice,” she said. “It’s the time to be practical with pricing and not think that you’re getting prices like during COVID, and not to start high — to be on task with what the comps actually are.”

Out-of-state buyers Brokers expect the pandemic-fueled trend of second-home buyers coming from outside the Midwest to continue into 2024. Geenen said he has noticed more East Coast and West Coast buyers in the past few years. Sisson and Ruhl said that prior to 2020, most of their vacation home buyers came from Chicago and northern Indiana. During the pandemic, they began to see buyers from Texas, California and Florida, and that trend hasn’t slowed. “You have to remember, in West Michigan, we have low property taxes, our natural resources are a blessing, and people are looking at quality of life, traffic and (cost of living),” Sisson said. Ruhl added: “The ‘climate haven’ thing has resonated with people, and they understand that access to fresh water is a real (concern).”

CRAIN’S PARTNER

PROMOTE AND PUBLICIZE YOUR INDUSTRY EVENT NEWS INCREASE ATTENDANCE AT YOUR EVENTS

Networking & Educational Events / Seminars & Conferences Fundraisers & Galas / Events of Interest to the Business Community

SUBMIT AN EVENT Deb Stein | dstein@crain.com

2 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

OVER 6 IN 10 READERS BELIEVE CRAIN’S GIVES THEM A COMPETITIVE EDGE

Michigan ski resorts grapple with balmy start to the season Warmer temperatures mean less snowfall, later start making snow | By Rachel Watson co-owner of Crystal Mountain, said his ski resort’s sales were “definitely softer” as of Dec. 4 than at the same time a year ago, with “one of the stronger” El Nino events of the past several years ongoing and expected to last through midwinter. “(Weather) always has been a variable,” he said. This year, the warmer temperatures have meant less natural snowfall and a later start making snow, he said. See SKI RESORTS on Page 16

BOYNE MOUNTAIN

Northern Michigan ski operators are expecting a slightly more challenging winter tourism season this season after back-to-back banner years for ski visitation across the U.S. and Michigan. Executives at Crystal Mountain in Benzie County’s Thompsonville and Boyne Mountain Resort in Charlevoix County’s Boyne Falls said they are experiencing slightly lower ski resort sales so far this winter compared to the same period last year. Jim MacInnes, chair and

Detroit Athletic Club to undergo renovations Main kitchen redo part of $11 million project By Kurt Nagl

The Detroit Athletic Club is undertaking $11 million of renovations at the storied property in downtown Detroit, including refreshing overnight rooms and overhauling its main kitchen. Work on the 29 overnight rooms at the private club was scheduled to begin in early January, Charles Johnson, executive manager and CEO of the DAC, confirmed to Crain’s. Last renovated in 2011, the room upgrades will include new furniture, fixtures and HVAC systems. The rooms are expected to be complete by mid-year. The cost of this portion of the project is $3.5 million, according to a construction permit issued by the city of Detroit. The $7.5 million kitchen project calls for a new layout and design, new equipment, updated utilities and improved waterproofing of the floor. It will also include the new Chef’s Table, envisioned as a private dining

space for DAC members within the kitchen, according to the club. These renovations are scheduled to start in midFebruary and be done by September. “The main kitchen renovation is a major project. It has been several decades since the main kitchen was renovated to the extent it will be in 2024,” Johnson told Crain’s in a statement. “The main kitchen is on the second floor of the building and is the production center for most events at the club.” Johnson said there will be little to no disruption of service for member dining as each restaurant in the DAC has its own kitchen. “Both projects were identified in long-range capital planning and were approved by the Board of Directors in December 2022,” he said. “As with all capital investments and renovations at the DAC, members will not be assessed for the cost of these projects.” Detroit-based firms Jonna Construction and Kraemer Design Group will oversee work on the overnight rooms, while

Metro Airport to see new flights, upgrades Drone security, new airlines set for 2024 By Anna Fifelski A new round of renovations was to begin in early January at the Detroit Athletic Club. | DETROIT ATHLETIC CLUB

Birmingham-based McIntosh Poris Associates and Rochester-based Frank Rewold & Sons will handle the new main kitchen. The planned upgrades follow the remodeling of the DAC’s Bowling Abbey, an area in the basement made up of an eightlane bowling alley and a 70seat restaurant. Completed last year, the remodeling cost an estimated $7 million, according to a Detroit building document. Elsewhere around town, other private clubs have plowed big money into renovations. The Detroit Golf Club wrapped up a $9 million upgrade earlier this year, Pine Lake Country Club in West Bloomfield Township is undergoing a $20.4 million project and Forest Lake Country Club in Bloomfield Township is set to finish a $10 million overhaul in 2024. Of course, nothing tops the swankiness — or price tag — of the clubhouse rebuild project at Oakland Hills Country Club.

In November, the Wall Street Journal ranked Detroit Metro Airport as the fifth-best large airport in the country. And in September, a J.D. Power survey had travelers pick it as its favorite airport in North America. The same month, Turkish Airlines made DTW its 13th U.S. gateway and introduced flights to Istanbul. The airport also expanded its Destination Pass Program last year, allowing more guests of passengers to accompany their loved ones to the gates. More than 93 years after its founding, metro Detroit’s airport is still evolving. In the new

year, those traveling through the airport can expect new airlines, drone security and more. “In 2024, we are planning upgrades to our infrastructure,” said Matt Morawski, spokesman for Wayne County Airport Authority, which manages the airport. “For example, WCAA will begin a project that will enhance the customer experience in the Evans Terminal. We will also continue our improvements to the McNamara Terminal which are funded by Bipartisan Infrastructure Law (BIL) grants, awarded through the FAA’s Airport Terminal Program. Those projects include bathroom upgrades, jet bridge replacements and baggage carousel enhancements.” See AIRPORT on Page 17

Passengers head to their gates inside the McNamara terminal of Detroit Metro Airport in Romulus. | CRAIN’S DETROIT BUSINESS JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 3

REAL ESTATE INSIDER

RenCen towers’ new owner has a knack with troubled assets

ate last year, a multiyear effort to sell off two Renaissance Center towers was finalized in one of the most noteworthy Detroit office deals of the COVID-19 pandemic. It’s not been a secret in commercial real estate circles that the previous owner of Tower and Tower Kirk Pinho 500 600, an entity tied to Newark, N.J.based utility company Public Service Enterprise Group Inc., has been shopping the buildings totaling more than 600,000 square feet around for at least the last two years. There have been various prospective buyers, but in the end, it was Farmington Hills-based Friedman Real Estate that emerged as the winner, but not before groups like Grosse Pointebased Foster Financial Inc. and Chicago-based Glenstar took swings at the 21-story buildings, sources have said.

The purchase price was not known as of Jan 2. With Friedman Real Estate, run by David Friedman, Tower 500 and Tower 600 get an owner that has shown over the years a knack for finding assets that have seen better days and repositioning them in difficult times. Case in point: Snapping up and then turning around down-ontheir-luck properties including the 1.2 million-square-foot North Troy Corporate Park and the nearly 430,000-square-foot part of the Arboretum Office Park it owns in Farmington Hills prior to the pandemic. Ditto the 261,000-squarefoot Onyx Building in Southfield and the nearly 350,000-squarefoot Laurel Office Park in Livonia. And the two Friedman-owned Renaissance Center towers — which are a different animal than the interconnected five-building behemoth owned by General Motors Co. next door — seem to be right in Friedman’s sweet spot. “We look at assets that people don’t want, for whatever reason — they’re out of favor, they’re risky,”

A F e e - O n l y We a l t h M a n a g e m e n t G r o u p

Michigan’s #1 Financial Advisor by both Barron’s* and Forbes** Charles C. Zhang CFP®, MBA, MSFS, ChFC, CLU Founder and President

Charles is the highest ranked Fee-Only Advisor on Forbes’ list of America’s Top Wealth Advisors**

www.zhangfinancial.com 101 West Big Beaver Road, 14th Floor Troy, MI 48084 (248) 687-1258 Minimum Investment Requirement: $1,000,000 in Michigan $2,000,000 outside of Michigan. Assets under custody of LPL Financial and Charles Schwab. *As reported in Barron’s March 11, 2023. Rankings based on assets under management, revenue generated for the advisors’ firms, quality of practices, and other factors. **As reported in Forbes April 4, 2023. The rankings, developed by Shook Research, are based on in-person and telephone due diligence meetings and a ranking algorithm for advisors who have a minimum of seven years of experience. Other factors include client retention, industry experience, compliance records, firm nominations, assets under management, revenue generated for their firms, and other factors. See zhangfinancial.com/disclosure for full ranking criteria.

4 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

The Renaissance Center’s 500 and 600 office towers changed hands recently. | COSTAR GROUP

Jared Friedman, executive managing director of acquisitions and business development for Friedman Real Estate, told me Dec. 26. He is the son of David Friedman. “We look at these assets and create value for investors. That’s what we do and it’s our primary goal, but we also bring life to these buildings. We change the feel of these buildings.” Friedman has its hands in a lot of facets of commercial real estate, including brokerage, ownership, finance, property management, construction and design services. And it’s not just office buildings Friedman works to reposition; the company also pursues similar opportunities in multifamily and other asset classes. I emailed a spokesperson for PSE&G (NYSE: PSEG) seeking comment Dec. 26. The office market has been battered during the pandemic as companies continue to embrace a hybrid work schedule that allows employees to split their time between their homes and their office cubicles. That’s been true not only in the suburbs, where Friedman is a prominent office landlord, but also in the office-centric Detroit central business district. In Towers 500 and 600, Blue Cross Blue Shield of Michigan signed a long-term lease extension for the former to remain its only tenant. And with a little real estate musical chairs, Tower 600 could also

be made entirely available to a single user, although how that precisely shakes out with its roster of smaller tenants such as the Detroit Riverfront Conservancy and Invest Detroit remains to be seen. That building is only about 10% occupied, Jared Friedman said, noting that the two towers are in good condition and don’t require much in the way of initial upgrades or capital expenditures. Friedman emerging as the buyer also brings another local owner to the downtown office market, leaving few out-of-state landlords of key office properties in the city’s central business district, which is dominated by Dan Gilbert and the Ilitch family. Among others that have exited in recent years: Minskoff Grant Realty & Management Corp. out of New York, principals of which owned the 211 West Fort office tower; Johns Creek, Ga.-based Piedmont Office Realty Trust, which sold the 150 West Jefferson high-rise in 2016; and New York City-based iStar Financial Inc., which unloaded its majority ownership of what is now Ally Detroit Center, to name just a few. (Among the out-of-state owners still kicking around downtown: The Church of Scientology and the Apostolopoulos family out of Toronto, which owns the Penobscot Building.) Jared Friedman said with his family’s company coming into the mix, that gives the buildings local

ownership with deep knowledge of the market. “It’s a lot different when you have local ownership invested in the property,” Friedman said Dec. 26. “We can work with the tenants and local brokers. We work a lot with the cities and communities we operate in. We try to improve the value of these assets and make them better for the tenants and communities.” Friedman Real Estate has been active in downtown for years and recently was one of two brokerage firms tapped to market some of Gilbert’s office space downtown to new tenants. Those buildings included Ally Detroit Center, the First National Building, One Woodward, One Campus Martius, 1001 Woodward, the 201 West Fort Street building and 300 River Place on the Detroit riverfront. The RenCen towers sale comes as GM continues to grapple with, among other things, how to handle its five-skyscraper portion of the RenCen office and hotel complex it owns through an affiliate on the Detroit riverfront. In November, GM announced it had hired David Massaron, the former Wayne State University CFO and chief business officer, as its chief economic development and real estate officer. AJ Weiner, managing director in the Royal Oak office of JLL, last month called Friedman’s purchase of the RenCen towers “a notable endorsement of the future prospects for the CBD market.”

RPT Realty to lay off nearly 100 By Kirk Pinho

Layoffs are coming to New York City-based real estate investment trust RPT Realty, the company that was formerly Farmington Hills-based Ramco-Gershenson Properties Trust, in advance of a $2 billion merger. A Worker Adjustment and Retraining Notification Act notice filed with the state on Oct. 27 says 99 RPT employees are expected to be laid off, with 51 of those coming from the company’s Southfield office. The remaining 48 are in offic-

es in other states. It’s not known whether that represents all of RPT’s employees, or the entirety of its Southfield office. An email was sent the morning of Jan. 1 to representatives from RPT and Jericho, N.Y.-based REIT Kimco Realty, which is buying RPT in an all-stock deal, seeking additional details. The notice says some of the layoffs were to begin starting Jan. 2, or within two weeks of that date. Some will continue working during a 30-, 60- or 90-day transition period, with those employees

to be laid off within 14 days of Feb. 1, March 2 or April 1. RPT’s Southfield office is in the Oakland Commons complex on Civic Center Drive east of the M-10/John C. Lodge Freeway and south of I-696. According to CoStar Group Inc., a Washington, D.C.-based real estate information service, RPT takes about 8,000 square feet in the 168,500-squarefoot building. In late August, Kimco said the deal, which has closed, would bring its enterprise value to $22 billion.

Bhargava-backed TravelHost relaunches By Nick Manes

Metro Detroit businessman and 5-hour Energy founder Manoj Bhargava has another project heading into 2024. Bhargava, the Farmington Hillsbased founder of 5-hour Energy and numerous other companies, in September 2022 acquired TravelHost. The six-decade-old news and information publication for travelers is in the process of ramping up and refreshing the brand, according to a news release. Bridge Media Networks LLC, the Farmington Hills-based media company owned by Bhargava, has tapped publishing industry veteran Orestes Baez as CEO of the revitalized brand. Plans call for a new social media presence for TravelHost, increased advertising and rolling out the brand in dozens of new markets over the coming years. A Bridge Media spokesperson declined to share an acquisition price or a projected investment figure for the TravelHost initiative. Revenue for the company will be generated by advertising from businesses in TravelHost markets, as well as an increased focus on digital ads. “We have a long-term investment in the travel segment as a complement to our other business initiatives with broadcast and digital,” Baez said in a statement.

The re-launched TravelHost. | BRIDGE MEDIA

“Our support of the brand includes a complete relaunch of the website and a new social media strategy where we look to support our growth plans. We have branded our weekly travel segment on the (Bhargava-owned) NEWSnet broadcast with the TravelHost name and are always looking for ways to partner and grow when and how it makes sense.” The markets where the brand is operating include Nashville and Pigeon Forge, Tenn.; Austin, Texas; Phoenix, and San Diego and Orange County in Southern California. TravelHost’s new website has “intuitive navigation, robust reviewstyle articles, available e-Editions of the printed magazines and an integration with Expedia for hassle-free reservations,” according to the news release.

Manoj Bhargava, owner of Bridge Media Networks, acquired TravelHost travel publication in September 2022. | NICK MANES

Late last year, Bharvaga became interim CEO of the parent company of Sports Illustrated and awaits regulatory approval to complete a deal making him the controlling

investor of New York City-based SI publisher Arena Group Holdings Inc. (NYSE: AREN). Bhargava began ramping up other media operations in recent

Hatch Detroit now accepting business plans for 2024 By Jay Davis

Business plans are now being accepted for a shot at the $100,000 grand prize in the 2024 Comerica Hatch Detroit Contest. Hatch Detroit, in partnership with TechTown Detroit, is accepting applications through the Hatch Detroit website through noon Feb. 16. The contest, established in 2012, allows entrepreneurs with a retail concept and goal of establishing a brick-andmortar location in Detroit, Hamtramck or Highland Park to submit business plans for consideration. The contest, which runs four months, includes two rounds of public voting for a top 10 and top four submissions. In addition to the $100,000 top prize from Comerica Bank, the winner earns a package of accounting, legal, IT and public relations support from Hatch Detroit and its partners, which include Bedrock Detroit, Fidelity Investments and Penske Automotive. The contest ends May 9 with the annual Hatch Off, during which the top four selected entrepreneurs pitch their ideas to a panel of judges and an audience.

Universal Logistics to invest $50M in Virginia

Key dates

By Kurt Nagl

Jan. 3: Submissions begin Jan. 18: Informational session Feb. 16: Submission period ends April 11: Top 10 announced April 12-18: Top 10 public voting period April 22: Top 4 announced May 1-9: Top 4 public voting period and media tour May 9: Winner announced at Hatch Off The Hatch Detroit contest has helped launch some notable Detroit businesses, including Little Liberia (2022 winner), 27th Letter Books (2019), Baobab Fare (2017), Meta Physica Massage (2016), Sister Pie (2014) and La Feria (2012). The winner of the 2023 competition was Cathryn Coleman, founder and owner of Detroit-based Bouncing Around the Motor City. Coleman’s business offers balloons, decor, event planning and party rentals. Hatch Detroit alumni have opened 50 businesses, employ more than 500 people and have invested more than $13 million in their businesses, the program said in a news release. With this year’s investment, Comerica Bank and the Comerica

years, becoming the majority owner of NEWSnet, a 24-hour news channel available through traditional broadcasting networks and on streaming services.

Bouncing Around The Motor City events business owner Cathryn Coleman (center) celebrates her $100,000 Hatch Detroit win with her family on April 26, 2023. The application window is now open for this year's contest. The 2024 winner will be crowned on May 9. | JAY DAVIS

Charitable Foundation have committed more than $1.1 million to Hatch Detroit in direct funding since Comerica’s partnership, along with the additional support. Hatch Detroit supports existing and new retail initiatives in Detroit, Highland Park and Hamtramck. It was founded in 2011 to give residents and aspiring entrepreneurs an opportunity to have a voice in neighborhood retail de-

velopment and joined TechTown in 2022. TechTown is a nonprofit business service organization that provides programs, education and resources for early- to growth-stage small businesses and tech entrepreneurs. Since 2007, TechTown has supported 6,090 companies, which created 2,277 jobs and raised more than $406 million in startup and growth capital.

Warren-based Universal Logistics Holdings Inc. plans to invest $50 million into a 254,000-squarefoot warehouse in Virginia to support new Class 8 truck assembly business. The transportation giant, part of the Moroun family’s logistics portfolio, will create 45 jobs at the plant, which will offer third-party assembly, sequencing and “other valueadded services,” according to a Jan. 2 news release. It is expected to open in 2025 after build-out and upgrades to an adjacent highway. The company did not name its customer. “Our expansion in the Roanoke region represents an exciting phase for Universal’s heavy truck division as we fortify our commitment to delivering top-tier services within the logistics and transportation sectors,” Universal CEO Tim Phillips said in the release. Universal’s annual revenue exceeds $2 billion, and it employs 2,650 people in Southeast Michigan, according to Crain’s data. Universal affiliate Logistics Insight Corp. was tapped to operate a warehouse on the site of the former AMC headquarters in Detroit. JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 5

EDITORIAL

Pandering in Whitmer proposal goes too far

ll politicians pander, to one degree or another. Gov. Gretchen Whitmer is no exception. However, a proposal she unveiled last month was so blatant in its intent that she stretched the governor’s office far beyond the realm of public policy and into cynical, partisan stunts. Some may laugh and say the two-term governor has been doing this for a long time. But her latest proposal to offer rebates for purchases of electric or hybrid vehicles, must be called out for what it is. To recap, in December, Whitmer said she planned to ask lawmakers during her upcoming State of the State address to approve a $25 million program to boost sales of electric or hybrid vehicles. Now, it is worth remembering that she outlined a different EV rebate proposal in her 2022 address and a sales tax break on EV purchases in her 2023 budget proposal. Neither of those efforts became law. Her latest proposal, which she is expected to push in her State of the State address set for Jan. 24, calls for a $2,500 rebate on a battery electric or hybrid vehicle manufactured in a unionized factory. However, if the vehicle is made in a nonunion facility, the rebate would be only $2,000. Why the $500 difference? We all know why — this proposal is a blatant sop to Whitmer’s Democratic base. It comes on the heels of the UAW’s damaging strike this past fall against the Detroit 3 automakers and Whitmer, along

Gov. Gretchen Whitmer is proposing state rebates to lower the cost of new vehicles, especially electric cars and trucks made by unionized workers. | BLOOMBERG

with her fellow Democrats, including President Joe Biden, want to stay in the union’s good graces going into a pivotal election year. But here’s the thing: It is wholly inappropriate for the government to be determining winners and losers in this way. The

state government has no business getting in between management and its workers, putting its thumb on the scale and granting its blessings toward union shops. If workers choose to unionize, that’s up to them. But the governor and the legislature should have no say whatsoever in

those employer-employee relations. Now, we’re only talking a $500 difference. But it’s the principle of the matter that counts. Whitmer wants to score a talking point about how she stood up and fought for unions. She’s welcome to support unions, just as they are welcome to endorse her. But injecting government policy, not to mention taxpayer money, into the equation is entirely out of bounds. Here’s the other rub, and the reason we know this is just political pandering: $25 million will do nothing to move the needle here. That amount of money, if the proposal were enacted, would be swallowed up in a week’s time, hardly causing a blip on the radar of auto sales, let alone carbon emissions. It’s also important to point out that the proposal also offers (smaller) rebates on sales of gasoline-powered cars, which would help speed along the exhaustion of the paltry fund. And even the few auto buyers who’d manage to get into such a program might not benefit much. The price of a vehicle is, shall we say, pretty flexible, and it seems just as likely that dealers would inflate sticker prices when they see such a program coming. Sadly, too often we’ve come to expect pandering gimmick proposals from politicians in Washington. But we expect more, and better, from the governor of our great state.

COMMENTARY

At the Rose Bowl, a reminder of who we can be

toward common ground. saw the young man’s shirt as It’s a feeling I’d like to hold on soon as the hotel elevator to in 2024 which, as we all know, door opened. It was a dark is an election year, and will inevired, with an instantly recogniztably bring its challenging moable slogan: Alabama. ments. It seems the potential for Here I was, in Southern Calidivision exists throughout society fornia, the morning of New Year’s these days, but, as I experienced Day, face to face with the enemy during my time in Pasadena, as I sported my opposing unithere are opportunities to bring form — a blue T-shirt with a Mickey us together, especially if we seek maize block M on the chest. Ciokajlo is Then, to my surprise, the young executive editor them out. Alabama and Michigan fans man uttered something quietly of Crain’s co-mingled before the game outthat I found both disarming and, Detroit side the stadium to get their picwell, respectful. Business and tures in front of the iconic Rose “Go Blue,” he said, then walked Crain’s Grand Bowl sign. Multiple Alabama fans away. Rapids offered to take pictures of me and “Roll Tide,” I responded with- Business. my teenage son and I, in turn, out hesitation. gladly offered to return the favor. It was the morning before the Rose Bowl, which would turn out to be an It wasn’t lost on me that these folks in their epic contest between two of college foot- crimson (“dark red”) shirts from a dark ball’s most formidable programs. It was red, politically speaking, Southern state, also literally the dawn of a new year, al- were enjoying the moment just as much as ways a time that offers hope for renewal their counterparts in maize and blue gear from the purple swing state Up North. and opportunity to resolve to do better. Of course there were differences. But It was a fleeting moment, but one I appreciated. He could have said nothing, or whether it was standing in line at a food something dismissive or confrontational. truck for chicken sandwiches and cheese Instead, he chose to demonstrate an un- fries, or watching parents and their kids derstanding, and perhaps appreciation, throw a football at the “fan fest” gathering for his opponent, as well as make an offer prior to the game, there were also plenty of

Fans of the University of Michigan and the University of Alabama mingle at the Rose Bowl in Padadena, Calif., on New Year’s Day. | MICKEY CIOKAJLO

moments that brought people together. It was great to see generations of families, on both sides, gather to support their team while appreciating and respecting their opponent. It demonstrated for my teenage son, whose grandfather has had season tickets at the Big House since the 1970s, that Wolverine fans aren’t the only ones with such deep passions for their program. In fact, after the game he expressed admiration for the Alabama fans and their traditions,

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 6 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

including their hearty shout of “Roll Tide” every time their offense made a first down. I suppose it was a bit easier to feel magnanimous after a win (a thrilling 27-20 overtime victory for Michigan), but I’ll take it. I’m resolved to remain hopeful in 2024 — and to keep striving to understand and appreciate situations from other points of view — be it a football game, politics, family life, or at work. Happy New Year — and Roll Tide.

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

Ann Arbor drugmaker settles suit against European distributor By Dustin Walsh

Ann Arbor-based drugmaker Esperion Therapeutics Inc. and pharmaceutical giant Daiichi Sankyo resolved a 10-month legal dispute over milestone payments for Esperion’s cholesterol-lowering drugs. Under a settlement agreement, Daiichi Sankyo Europe GmbH, the European arm of the Japanese company, agreed to pay Esperion (NASDAQ: ESPR) $100 million in mid-January for the anticipated approval of its Nilemdo and Nustendi cholesterol-lowering tablets by European drug agencies. Daiichi will pay out another $25 million immediately following those approvals, the companies said in a news release Jan. 3. The new payouts, however, are much lower than what Esperion claimed Daiichi owed in March. Esperion and Daiichi disagreed with the company’s assumption that positive test results would trigger milestone payments in the companies’ licensing agreement. Esperion believed it was entitled to $300 million in milestone payments after a study showed its drug Nexletol reduced certain major adverse cardiovascular events by as much as 15% and the risk of heart attack by 23%. Without the additional milestone payments, Esperion’s ability to raise future capital would be impacted, the company said in the filing. Later that month, Esperion filed a lawsuit against Daiichi in U.S. District Court in New York. Under the new agreement, that lawsuit is dismissed. “We are pleased that this settlement creates value for Esperion today through cash payments and includes additional terms that will continue creating value for both companies going forward. Importantly, today’s settlement allows Esperion and (Daiichi) to focus on the business at hand — delivering life-saving drug therapies to millions with high cholesterol,” Sheldon Koenig, Esperion’s president and CEO, said in the release. “Together, we are committed to making bempedoic acid a blockbuster franchise worldwide, based on the differentiating profiles of our products.” Esperion and Daiichi Sankyo Europe entered into the commercialization and licensing agreement in January 2019 in a deal that included $300 million in upfront payments with the potential of another $900 million in payments contingent on drug approvals and other milestones, a common structure in the world of pharmaceuticals. The deal gave exclusive rights for Daiichi Sankyo to distribute Esperion’s cholesterol-lowering drugs in the European Economic Area and Switzerland provided they pass European regulatory scrutiny. Esperion was founded by entrepreneur Roger Newton, who

worked for Pfizer Inc. on the development of the blockbuster cholesterol drug Lipitor. Its drugs’ path to approval took 20 years and two incarnations of the company. Newton retired from Esperion in 2019. The current incarnation of Esperion went public in a $73 million initial public offering in 2013. It raised hundreds of millions of dollars in subsequent stock sales as it worked to bring its drugs to market. Due to not receiving the Daiichi

funds last year, Esperion commenced a stock sale of $56.7 million to raise cash, selling roughly 33.2 million shares. The company has yet to get its drugs to a profitable scale of commercialization. The company reported a loss of $41.3 million in its third quarter last year, compared to a loss of $55 million during the same period a year earlier. That was on revenue of $34 million, compared to $19 million in the same quarter of 2022.

Esperion has sponsored NASCAR racer Brad Keselowski's #6 Ford car, which displays the names of the Ann Arbor company’s U.S. drugs. | ESPERION

From top talent to top employers, Crain’s Career Center is the next step in your hiring process or job search.

Connecting Talent with Opportunity.

Get started today CrainsDetroit.com/CareerCenter

JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 7

2024 OUTLOOK

Redfin Senior Economist Elijah de la Campa sees better times ahead for the residential real estate industry. “The good news is that affordability is already improving heading into the new year,” he said. | BLOOMBERG

Residential real estate outlook brightens for 2024 By Nick Manes

From sky-high interest rates to rising home values despite weak demand, 2023 helped prove the adage that the nation’s housing economy fails to behave like a normal market. All told, 2023 made for “the least affordable year to buy a home” in the records kept by online home brokerage giant Redfin. An American making the median U.S. income of $78,642 spent more than 41% of their income on monthly housing costs last year if they bought the median-priced home of nearly $409,000, according to Redfin. Michigan’s median home price of about $245,000 makes it a relatively affordable market compared to many, but the same general trends were present in the state throughout the year. However, there appears to be some good news on the horizon 8 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

caused 2023 to go down as the least affordable year for housing in recent history,” stated Redfin Senior Economist Elijah de la Campa. “The good news is that affordability is already improving heading into the new year. Mortgage rates are coming down, more people are listing homes for sale, and there are still plenty of sidelined buyers ready to take a bite of the fresh inventory. We expect these conditions to continue to improve in 2024.”

Mortgage rates dropping “2023 was kind of a nightmare with depleted and picked-over inventory — combined with the higher interest rates,” said Andrea Carollo, an agent in the Birmingham office of Max Broock Realtors. “So I’m crossing my fingers and toes that 2024 will have better days ahead.” | NIC ANTAYA

for weary would-be buyers, as well as existing homeowners, real estate agents and mortgage companies — of which two of the largest are headquartered in Southeast

Michigan and employ thousands of people. “A perfect storm of inflation, high prices, soaring mortgage rates and low housing supply

2023 has primarily been marked as the year with the highest mortgage rates in a generation. The rate on a 30-year fixed-rate mortgage loan peaked in late October at nearly 7.8%, the highest level in about 23 years, according to mortgage buyer Freddie Mac. In recent weeks, however, that rate has been on the decline — the 30-

year fixed rate fell to a six-month low on Dec. 21 — and experts predict that to continue. Lawrence Yun, chief economist of the National Association of Realtors, in November forecast that rates will likely drop to the range of 6%-7% by the middle part of this year, likely leading to a 15% yearover-year increase in home sales in 2024. “Twenty-year-high mortgage rates have held off home buyers,” Yun said in a news release. “There’s also a lack of housing inventory to sell, which means fewer opportunities for sales in the marketplace.”

Uptick in home sales Amid the projected decrease in mortgage rates, the NAR is also forecasting a year-over-year double-digit increase in home sales this year. See REAL ESTATE on Page 12

If your business accepted Visa and/or Mastercard between 2004 - 2019, you’re now eligible to claim your share of a $5.5 billion Settlement. Claim your share now.

Merchants (business owners) who accepted Visa and/or Mastercard at any time from January 1, 2004, to January 25, 2019, are eligible to claim their share of a $5.5 billion Settlement. Visa and Mastercard and their issuing banks (the “Defendants”) are alleged to have violated the law because they wrongfully inflated Interchange Fees. Defendants say they have done nothing wrong. They claim their business practices are legal. After years of appeals, the Settlement is now final, and Claim Forms are now being accepted. If you do not file a claim, you will not receive a Settlement Payment. Claim Forms are now being mailed to more than 15 million merchants. Even if you do not receive a Claim Form in the mail, you may still be eligible, and you should visit www.PaymentCardSettlement.com to get more information about the Settlement. The deadline to file a claim is May 31, 2024. You can file your claim online at the website. Or, if you prefer, you can get a paper Claim Form at the website or by calling 1-800-625-6440. Assistance with preparing your claim is available at no cost to you from the Class Administrator and Class Counsel. Submitting your claim online can take less than five minutes. STEP ONE: Scan the QR code to go to www.PaymentCardSettlement.com.

To get a Claim Form in Spanish Japanese , Chinese

, Russian , or Thai

Do you need additional help or information?

STEP TWO: Provide the information requested about your business.

STEP THREE: Submit your claim! Your claim process is now complete.

, Korean , Vietnamese , , please visit www.PaymentCardSettlement.com.

Visit Online: www.PaymentCardSettlement.com Email: info@PaymentCardSettlement.com Call: 1-800-625-6440

Interchange - Crains Detroit (Full Page with Bleed) V2.indd 1

12/21/2023 10:16:40 AM

2024 OUTLOOK

More small, mid-market M&A expected in 2024 By Mark Sanchez

High interest rates and a tighter lending environment will continue to drive M&A deals downstream in 2024 and toward the middle and smaller ends of the market. That’s one of the main expectations for the next year, based on results of an annual M&A outlook survey by law firm Dykema Gossett PLLC. More respondents expect M&A activity to increase at the middle and lower markets than for mega deals valued at $1 billion or more. Because of the higher costs to finance deals amid elevated interest rates, buyers such as private equity firms have been pulling back on mega deals. The migration downstream that began last year will likely carry into 2024, said Joe DeHondt, co-chair of Dykema’s M&A practice group who works at the firm’s Bloomfield Hills office. “For mid (sized) and small businesses, the M&A market is going to be solid in 2024,” DeHondt said. “When you look at the statistics from 2023 being a down year,

when you really dig in, it looks like a down year because the last two (prior) years there’s been soaring M&A deal volume. But when you look at what types of transactions were actually down in 2023, it’s the large deals. You don’t see that same amount of decline in deal volume when you look at the smaller deals.” The move toward smaller deals occurs among financial and strategic buyers, he said. Strategic buyers are doing more smaller add-on acquisitions or deals to build out existing business platforms, while financial buyers pursue transactions to deploy their capital and “sometimes you can do smaller deals without necessarily needing financing if you’re a strategic with a lot of cash,” DeHondt said. Results in the Dykema outlook survey, which was distributed in August, showed that expectations for deal volume over the next 12 months were highest for middle and small market transactions. Of the more than 260 corporate executives and advisers responding to last year’s Dykema survey, 52% said they expect an increase

Jo tow als

By K

Health care, which includes digital health technologies, ranks third among sectors most likely to experience M&A activity in 2024, according to a new M&A outlook survey by Dykema Gossett PLLC. | UNSPLASH

in deals valued at $100 million or less and 36% expect no change. In the middle market for deals of $100 million to $1 billion, 43% percent of respondents expect greater deal flow this year and 41% expect no change. By comparison, a low 37% of respondents believe that mega-deal activity will increase and 40% expect no change. The steady rise in interest rates and inflation has driven the greater use of alternative methods to finance deals. Seller notes, earnouts, third-party equity investors and rollover equity have been used more frequently in putting deals together, according to Dykema survey results.

The community lender large enough to provide big options for your business and small enough to know you by name. You know your business, the area, its challenges, and its advantages. So do we. Partner with the community lender with a history of crafting custom lending solutions and expertise in commercial real estate, working capital, and equipment financing.

Michigan | Illinois | Wisconsin adviacu.org/commercialloans

Real Advantages for Business Advia is an Equal Opportunity Lender. Federally Insured by NCUA.

$610,000 Refinanced

Owner-occupied office building located in Southfield, MI

10 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

One-third of respondents said they “sometimes” used seller financing in the last year to finance deals and 35% used it “often.” Another 8% “always” used seller financing. “Alternative financing methods have become more prominent over the past year and, in many cases, have been critical to getting deals done,” DeHondt said. “Given the tight bank lending environment, buyers’ ability to find and use alternative funding methods, I think that really helped drive the market in 2023 and we expect that will continue in 2024.” Energy, financial services, health care, technology and telecom, and industrial and manufacturing were the top sectors for expected M&A activity in 2024, according to the Dykema survey. The automotive sector, which ranked third a year ago for expected activity, declined to 10th in the 2023 survey. DeHondt attributes that “considerable” change partly to a lot of uncertainty about looming strikes against automakers at the time Dykema conducted the survey. Cannabis also dropped out of the top five sectors for expected M&A activity in the coming 12 months.

‘Cautiously optimistic’ Overall, results from the 2023 Dykema outlook survey suggest the M&A market should improve in the next year after leveling off last year. Business leaders now anticipate “a steady deal market in the year ahead” after a 2023 when “soaring deal volume of 2022 has wound down by almost a third,” according to Dykema. In 2023, “survey respondents have settled into a slightly quieter market, in which M&A players are pursuing fewer deals and less frequently rushing to capture hot targets,” according to a summary of the survey results. Across all deal-size categories, 57% of survey respondents anticipate a stronger market this year and one-quarter expect no significant change. The other 18% expect M&A activity to weaken over the next 12 months.

DeHondt describes dealmakers as “cautiously optimistic” about the 2024 M&A market. “What we and what our survey indicates, the next year will continue to be much like 2023, maybe somewhat stronger than 2023, but that is just going to remain to be seen on what happens to inflation, what happens with interest rates, what happens with general economic conditions,” he said. Inflation, high interest rates, the economy, and the availability of quality acquisition targets and capital were identified as the top obstacles to deals in both the past year and for the next 12 months. The Federal Open Market Committee in December decided for the third straight meeting to maintain the benchmark federal funds rate at its present level. The decision followed a rapid rise in interest rates since 2022 to ward off high inflation. In an economic briefing following the Nov. 1 decision, Comerica Bank economists wrote that they expect the FOMC to maintain the federal funds rate at the present 5.25% to 5.50% at their next few meetings, then start reducing rates by mid-2024. “It is becoming more likely that the Fed’s next policy move will be a rate cut. Comerica’s November interest rate forecasts will show the federal funds rate steady through May of (2024), and the Fed cutting interest rates by a quarter percentage point at the June, September, and December 2024 rate decisions,” Comerica economists wrote. PNC Bank economists also expect the Fed to keep interest rates unchanged when it meets again in December, given data showing slower economic growth and softer inflation. A majority of respondents to an October survey by the National Association of Business Economists for a quarterly outlook expect interest rate cuts to begin in the first half of 2024. Half of survey respondents in the Dykema M&A survey reported that they feel “positive” about the U.S. economy over the next 12 months and one-third were neutral. The remaining 17% were negative.

C east site is a this In hav ing mas pain love jew hav plex stru east glob sure Th that tion dev Hud dow tern Wil oth be f F one

Mic

F amb Con Mic seen of th —i sive hicl A on fam For con It’s spri in 2 form boo A also has

For

A Det war Co. Th hea side may voc with war G buil staff Insi vers par ing It

kers out

vey onybe but o be ion, tes, eco-

the y of and top past s. omfor ainnds eciteroff

owrica hey the sent few ates

that l be mber how ady the y a the mber rica

exates n in wing oft-

o an onal noexn in

the that U.S. nths e re-

Michigan Central among developments to finish in 2024 Joe Louis apartment tower, former AMC HQ also near completion By Kirk Pinho

Construction on a few of Southeast Michigan’s most prominent sites — particularly in Detroit — is anticipated to be completed this year. In many cases, the projects have been Herculean efforts going back years. Some involved massive demolitions. One is a painstaking restoration of a beloved but long-vacant Detroit jewel. All, to varying degrees, have dealt with the intrinsic complexities and fickle nature of construction in Detroit and Southeast Michigan — not to mention a global pandemic for good measure. There are some large projects that are getting closer to completion each day — the Dan Gilbert development on the former J.L. Hudson’s department store site downtown, the Gordie Howe International Bridge, the Ralph C. Wilson Jr. Centennial Park and others — but aren’t scheduled to be fully complete in 2024. Following are a few important ones that are:

The redevelopment of Michigan Central Station is expected to be complete in 2024. | NIC ANTAYA

Michigan Central Station Few projects have been more ambitious in recent memory: Converting Detroit’s long-vacant Michigan Central Station — long seen as a physical manifestation of the city’s decades-long decline — into the centerpiece of a massive autonomous and electric vehicle campus in Corktown. After buying the iconic depot on 15th Street from the Moroun family for $90 million in 2018, Ford Motor Co. has been pretty consistently at work restoring it. It’s expected to open in the spring, following the completion in 2023 of a large renovation of a former Detroit Public Schools book depository. A nearby parking garage has also opened and Roosevelt Park has been completely overhauled.

Former AMC headquarters A former blighted property in Detroit is turning into a new parts warehouse for General Motors Co. electric vehicles. The old American Motors Corp. headquarters on the city’s west side was torn down — to the dismay of historic preservation advocates — and is being replaced with nearly 800,000 square feet of warehouse space. GM is expected to control the building, although it would be staffed and operated by Logistics Insight Corp., an affiliate of Universal Logistics Holdings Inc., part of the Moroun family’s trucking empire. It’s expected to open in the sec-

The former American Motors Corp. headquarters building at 14250 Plymouth Road on Detroit’s west side (left), the Residences at Water Square on the former site of Joe Louis Arena (center), which will bring nearly 500 high-end apartment units to the west riverfront in Detroit, and (right) the Eastland Commerce Center. | COSTAR GROUP, NICK MANES AND NORTHPOINT

ond quarter, Crain’s reported last year. NorthPoint is also the developer on this project.

The Residences at Water Square A new 25-story apartment tower has risen on the Detroit riverfront — commanding sky-high rents to match when it opens in the first quarter. Pre-leasing has already begun at The Residences at Water Square, the first building to be constructed on the site of the former Joe Louis Arena, which was vacated when the Detroit Red Wings moved to Little Caesars Arena in 2017. Coincidentally, the vision for the second building on the site was more fully fleshed out just before year’s end when the city scheduled Community Benefits Ordinance meetings for the proposed 25-story convention-style hotel with about 600 rooms.

Construction on that tower, also being developed by Detroit-based The Sterling Group, is expected to begin in the second quarter.

Former Eastland Center site The former Harper Woods mall on Vernier has been razed after years of decline. In its place, a trio of industrial warehouse buildings by Riverside, Mo.-based NorthPoint Development LLC are coming to fruition, with one of the three already fully leased by automotive supplier Thai Summit Corp. to the tune of about 297,000 square feet. All three are expected to be completed, if not leased, in 2024. Likewise, a trio of new industrial warehouse buildings by NorthPoint on previously vacant land in Romulus is expected to be finished, each with about 350,000 square feet.

Congratulations, Matt O’Bryan, for 40 years at KLA Laboratories, Inc.! Matt started his career at KLA in 1984 in the shipping and receiving department, working his way up to President and CEO in 2016. Our team is thankful for Matt’s leadership and focus on KLA’s culture and growth, ensuring continued success for the company. Thank you for 40 years of service, Matt. We look forward to the next 40! KLA Laboratories, Inc. www.klalabs.com 313-846-3800 Dearborn, MI I Irvine, CA I Las Vegas, NV

Integrating Advanced Technology for Almost a Century.

JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 11

2024 OUTLOOK

The cannabis industry could clear its biggest hurdle yet in 2024

By Dustin Walsh

timately change the state’s industry.

By A

Michigan became the nation’s dominant marijuana market in 2023. While sales slowed in more mature markets like California and Colorado, Michigan sales continued to bloom. Total sales in 2023 through November reached $2.8 billion, half a billion dollars more than the total of sales in 2022. The state should easily eclipse $3 billion in total sales for 2023. But those sales haven’t come easy for the industry, which is reaching the tail end of an epic price collapse — the average cost of an ounce of marijuana in the state fell to just $80.16 in January from more than $500 in 2020. In an industry built on non-traditional financing and unsteady business models, 2023 saw the state’s first major player collapse in the court-ordered receivership of Skymint. Once the largest grower of marijuana in the state, the company is closing its last remaining grow operation early this year and only operating dispensaries. The company is being acquired out of receivership by its largest creditor. The industry also matured, even painfully, last year. Despite the lowest taxes in the country, marijuana excise taxes collected during the state’s fiscal year surpassed taxes taken from beer, wine and alcohol sales combined. The year was also marred by corruption that led to charges and jail sentences for lobbyists and former Speaker of the House Rick Johnson. In 2024, the industry could see major, paradigm-shifting changes in federal regulations that would ul-

Schedule 1

D wou ban ban buy tere bus loan A sion dict mea and ploy B yet— arti abo bor pre “I poli liev rece into soft “No into dec Fed ful i B whe “A sum any hold said that glob the to p S for for cial

REAL ESTATE

Michigan, available inventory for buyers to choose from has been around two months, whereas six months is considered a “balanced” market. The potential for stable, or falling, interest rates this year could lead to more existing homeowners willing to put their houses on the market, leading to more options for eager buyers. “2023 was kind of a nightmare with depleted and picked-over inventory — combined with the higher interest rates,” said Andrea Carollo, an agent in the Birmingham office of Max Broock Realtors. “So I’m crossing my fingers and toes that 2024 will have better days ahead.” Home prices in metro Detroit through November were up by more than one-third since March 2020 and about 6.2% year-todate, according to the Zillow Home Value Index, and presented in a recent post on ResiClub, a residential real estate newsletter.

From Page 8

All told, the influential trade group for the residential real estate industry predicts 4.71 million existing-home sales in 2024, an increase of 13.5% from 2023. Median home prices around the country are likely to remain largely unchanged, increasing just 0.9% from last year, according to Yun. States such as Michigan, with prices below the national average, could see among the highest uptick in prices, Yun said in a news release. Metro Detroit Realtors are, of course, hopeful for an increase in activity in the new year. For some, it comes down to an old adage: It’s hard to sell when there’s nothing to sell. Inventory of homes in 2023, locally and nationally, has been dramatically low. In Southeast 12 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

The U.S. Department of Health and Human Services recommended earlier last year that the Drug Enforcement Agency reschedule marijuana away from the same federal classification as heroin, LSD and peyote. The move would have immediate effects on Michigan’s marijuana industry. The rescheduling would clear up federal rules that ban banks from banking cannabis operations and end the financial discrimination against those who work in the industry and are unable to access traditional mortgages and loans. The move would also end a cursory tax regime under 280E, which prevents marijuana businesses from writing off business expenses involved in the sales of the classified narcotic, translating to tax rates of 70% or higher. Rescheduling would effectively create instant cash flow for most marijuana businesses.

Peaking market Michigan’s market, though, is likely nearing the sales peak. The state was expected to surpass $3 billion in sales last year and at least one expert predicts the total size of Michigan’s market is about $3.2 billion. And despite a massive growth in overall sales, they have been slowing month-to-month. Sales peaked in July at $276.7 million and have been sliding, down to $260.5 million in November. Some of those peaks and valleys are seasonal, but there is a fi-

Lo loa am

Cannabis plants grow outside at Grasshopper Farms in Paw Paw. | NIC ANTAYA

nite number of marijuana consumers in a state that isn’t achieving population growth. Industry operators will have to learn to manage expenses and achieve efficiencies to continue growth if the market stagnates in 2024.

Medical no more While medical marijuana ushered in legal weed in the state, its role in the overall market continues to diminish. Through November, medical marijuana sales accounted for a paltry 2.8% of total marijuana sales in the state. In January, medical sales totaled $11.3 million. In November, the total dropped to $3.8 million, compared to nearly $257 million in adult-use recreational sales. The reality is there’s little economic sense to buy medical marijuana, and the state’s strict rules on how dispensaries operate between medical and adult-use means fewer and fewer operators will even maintain their medical licenses. It’s unlikely the medical

side will disappear — there are plenty of medical advocates left — but that sector will continue to wither in 2024.

are markets elsewhere in the state that are ripe for growth.

Covered market

The state has been battling marijuana testing lab operator Viridis in court for two years and those cases aren’t close to a resolution. At issue is whether Viridis was inflating THC, the psychoactive ingredient in marijuana, for clients to ensure they claim a higher value on the market. Consumers are more apt to pay top dollar for higher-THC marijuana. Most legal states are kneedeep in controversy about whether labs writ large are inflating THC content and/or passing samples with banned substances to maintain business in the competitive environment. State regulators acknowledged the problem by planning to construct their own testing lab, which is supported by $4 million from the state budget. If the lab gets off the ground in 2024, expect a big hammer to be swung at cheating players in the market.

Michigan’s marijuana industry has largely been hinged on its ability to get product in front of customers. A major part of that effort is getting more and more municipalities on board to allow for dispensaries in their respective towns. It hasn’t been smooth, as dozens of lawsuits have cropped up over the competitive local licensure process. But more and more came online — that is until recently. In November, voters in Rochester, Birmingham, Grosse Pointe Park and Keego Harbor rejected marijuana businesses in their communities. Operators in metro Detroit may be out of real estate to expand in the state’s most competitive market. This could create some stagnancy in sales as well. The question is whether there

Science gets a reality check

“Metro markets in southern states will likely outperform others due to faster job increases, while markets in the Midwest will experience gains from being in the most affordable region,” according to Yun, the NAR chief economist. Large Texas metro areas such as Austin, Dallas and Houston, as well as Dayton, Ohio, and Philadelphia are among the regions that the NAR identifies having the most pent-up housing demand, and which are most likely to “outperform” other regions.

Buyers tap equity? There’s also a potential bright spot for existing owners: They’re sitting on piles of wealth. A report in early December by mortgage data company Black Knight Inc. found that U.S. homeowners have more than $10.6 trillion of untapped equity.

Michigan’s median home price of about $245,000 makes it a relatively affordable market compared to the national price of nearly $409,000. | BLOOMBERG

In the third quarter of last year, just 0.41% of equity available at the beginning of the quarter was withdrawn, some 55% below the average withdrawal rate seen from 2010 to 2021, according to

Black Knight. The elevated interest rate environment, however, serves as a deterrent for homeowners who might wish to tap into that wealth.

“I equ bee the Wal pris par tal E “Th —$ —i mig the H tap has with the with Jero sibi new tap

Bet com

tate

maridis ose ion. ininents val-

pay arineeethTHC ples aintive

ged onhich rom s off big ting

ket

nvis a who hat

The biggest issues facing banks in 2024 Lower demand for loans, rising expenses among challenges

in certain areas, such as mortgage banking, but could rebound in others, such as investment banking. Trading revenues may remain relatively robust,” according to a 2024 banking outlook by capital marketing company S&P Global.

By Anna Fifelski

Despite predictions that 2023 would bring a plethora of new bank deals after a slow 2022, the banking crisis in March 2023 put buyers on edge, and this worry filtered through small and mid-size businesses looking to secure loans. After narrowly avoiding a recession last year, analysts are predicting a soft landing in 2024, meaning higher interest rates and, hopefully, no spike in unemployment. But banks aren’t in the clear yet—with the rise of generative artificial intelligence, concerns about inflation and a drop in loan borrowing, banks will still feel pressure in the new year. “I think many economists and policymakers and bankers believe that we may have averted the recession and we may be getting into what they’ve been calling a soft landing,” Val Srinivas said. “Now the economy doesn’t tip into a recession, and it doesn’t decrease unemployment and the Federal Reserve may be successful in achieving that goal.” But nothing is ever clear-cut when it comes to banking. “As far as what banks and consumers can do, it’s not based on any individual entity or household or company or a bank,” he said. “There could be many things that could go on to happen in the global economy that may change the dynamics and it’s really hard to predict.” Srinivas is the research leader for banking and capital markets for the Deloitte Center for Financial Services and one of the au“Indeed, in recent quarters, equity withdrawal rates have been running at less than half their long-run averages,” Andy Walden, vice president of enterprise research at Black Knight parent company Intercontinental Exchange, said in a statement. “That’s equivalent to $54 billion — $250B over the last 18 months — in ‘missing’ withdrawals that might have otherwise stimulated the broader economy.” Homeowners’ reluctance to tap into that money, of course, has been a key goal of officials with the U.S. Federal Reserve in their quest to cool inflation. But with Federal Reserve Chairman Jerome Powell signaling the possibility of three rate cuts in the new year, owners might move to tap some of that accrued wealth.

Better year for mortgage companies Much of the above — from in-

Rising expenses

With the rise of generative artificial intelligence, concerns about inflation and a drop in loan borrowing, banks will still feel pressure in the new year. | QUINN BANKS

thors of Deloitte’s 2024 banking and capital markets outlook. His prediction of a soft landing in 2024 is shared with other analysts and is a key takeaway from the University of Michigan’s Economic Outlook for 2023-2025. UM’s outlook discussed the implications of the UAW strike, which cost the economy billions of dollars throughout its six-week duration. “The state has mounted a vigorous comeback from the pandemic recession in the face of severe supply chain shortages, high inflation, rising interest rates, and now a major strike in its marquee industry,” noted the outlook report by UM researchers Jacob Burton, Gabriel Ehlrich and Michael McWilliams. “The strike’s resolution comes as Michigan’s economy is nearing a complete recovery from the pandemic recession.”

Lower demand for loans

creased sales to lower rates to the potential for homeowners tapping equity — could lead to sunnier days for mortgage lenders including Rocket Mortgage and United Wholesale Mortgage, both headquartered in metro Detroit. That’s despite a projected chilly winter for the industry. The Mortgage Bankers Association trade group projects far sunnier days ahead for the industry. The group’s latest Mortgage Finance Forecast released in mid-December projects total loan originations to grow about 22% this year to $2 trillion, and further accelerate through 2026 to more than $2.4 trillion. The MBA also projects refinancing activity to account for roughly one-quarter of all originations in 2024, compared to about 19% last year, indicating that existing homeowners are likely to jump at lower interest rates.

Lenders, servicers exit the market

In 2024, banks will also see lower demand for loans because borrowers have been dipping into their savings to account for rising interest rates and other household pressures, Srinivas predicts. In August, Americans’ credit card debt surpassed $1 trillion — higher than it has ever been, even before the pandemic. “Customers—retail, institutional, even small businesses, big companies—they want more for their money,” Srinivas said. “They want more for their deposits and deposit rates have been going up as a result. So the cost of deposits and costs of funding is going to be a pressing concern.” As far as bank revenues and expenses, 2024 should bring more of the same. “With a slow-growing economy, fee income may remain tepid

As nonbank mortgage lenders like Rocket and UWM step into 2024 they’re also entering an altered marketplace. The tough year of 2023 caused many so-called warehouse lenders — the larger financial institutions that provide capital to nonbank mortgage companies — to exit the market amid shrinking volumes and lesser profitability. Case in point, Dallas-based Comerica Inc. — which has a large Michigan presence — said over the summer that it would exit the mortgage banker finance business by year’s end. Doing so will “smooth seasonality in its loan portfolio, enhance liquidity and improve the lender’s loan-to-deposit ratio,” according to a June 13 Bloomberg report. Wells Fargo also exited the industry during 2023. The impact of such moves re-

risk factors that generative AI can bring to the trade. Generative AI, which emerged late in 2022 in the form of San Francisco-based company OpenAI’s language processing tool ChatGPT, is an artificial intelligence program capable of generating text, images, or other media. “We have seen this explosion in the growth of artificial intelligence, especially generative AI,” Srinivas said. “And banks are being forced to examine where AI can be most beneficial to them. . . .There’s both opportunities as well as risks and banks should be preparing for both. You can’t ignore the risks thinking that might it’s something in the future. No, it’s already happening.” Srinivas said a concern about using generative AI in the banking industry is that the technology could be misused to enable fraudsters. To combat these pressures, there won’t be a one-size-fits-all approach, Srinivas said, but he suggests that banks should pay attention to the data and have a focus area for the company’s achievements for 2024. “Put a great emphasis on scenario analysis,” Srinivas said. “More positive to not-so-positive

Expenses will also continue to climb, the S&P global report said. “Banks will keep focusing on expenses, consolidating branches and digitizing,” it said. “However, inflation and investments in technology will raise expenses further.” Michigan has been hit hard by these challenges: It had the fourth-most bank branch closures in the country between 2020 and 2023, losing 15% of its total branches, according to an analysis by online lender LendingTree. The closings from June 2020 to June 2023 reduced the number of bank branches in the state from 2,289 to 1,944 offices, a reduction of 15.1%, which was more than twice the national rate, per the LendingTree report. The branch closings furthered a trend that’s been occurring for two decades and reflect the evolving state of banking where customers today, especially younger generations, are increasingly banking digitally, said Ken Tumin, a se- — Val Srinivas, Deloitte Center for Financial Services nior banking industry and negative scenarios. Don’t get analyst for LendingTree. caught up in the latest sort of popular tool, say, generative AI, but Technology challenges think holistically about what Like other industries, banking problems are they trying to solve will also be impacted by the expo- and what can they do to improve nential development of genera- their business efficiencies or tive artificial intelligence, De- make the jobs better for their emloitte’s Srinivas said, and may feel ployees or serve their customers more pressure in 2024 due to the better.”

“Banks are being forced to examine where AI can be most beneficial to them.”

mains to be seen, according to Mat Ishbia, the CEO of Pontiac-based UWM. Speaking in a monthly video message in early December, Ishbia said the exits of larger banks from the sector could move more people into the brokerage world, where UWM operates; or it could move some of the mortgage bankers from those companies toward larger institutions. “So this is something to be watching in the industry,” Ishbia said. “How will it impact people as a lot of the warehouse banks are not seeing the benefit of staying in the business.”

New tax credit for ‘missing middle’ housing Newly proposed federal legislation could lead to the creation of a new tax credit similar to the popular Low Income Housing Tax Credit or LIHTC but for so-called “workforce housing.” Such housing is usually geared

toward people who make too much to qualify for the rental housing built using LIHTC, but often struggle to afford market-rate housing in many areas. Bipartisan legislation introduced in December in the U.S. House and Senate the Workforce Housing Tax Credit Act. Should the proposed legislation become law, the credit would act similarly to LIHTC in which developers can sell the credits to raise equity for projects and would have to set aside 60% of units for households earning 100% or less of Area Median Income and must be kept affordable for up to 30 years, according to a fact sheet by the National Multifamily Housing Council, a trade group for apartment developers which supports the legislation. In Michigan, bills passed in late 2022 to grant more flexibility to local governments to build more workforce housing have started to bear fruit. JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 13

ENGINEERING / DESIGN

INSURANCE

Superior Electric Great Lakes Company

Sharrow Marine

Kapnick Insurance

Greg Sharrow, inventor of the Sharrow™ Propeller and CEO and Founder of Sharrow Engineering and Sharrow Marine, the industry leader in high-performance propeller design, has been appointed to the Board of Directors of the National Marine Propeller Association. This appointment reflects Greg’s exceptional leadership and commitment to advancing innovation and sustainability in marine propeller technology, solidifies the company’s dedication to contributing to the industry’s development and growth, and sets in motion future collaboration between Sharrow and other NMPA members. The company holds over 125 patents and has received numerous accolades, including TIME naming the Sharrow MX™ Propeller as one of the Best Inventions of 2023.

Kapnick Insurance enthusiastically announces the addition of Geoff Finger and Sean Carriveau to their Finger team. Geoff Finger, with vast benefits industry experience, will serve a diverse client base from Troy, delivering innovative employee benefit solutions. Sean Carriveau, a seasoned business professional, will operate from Ann Arbor, focusing on tailored commercial risk solutions. These strategic appointments Carriveau underscore Kapnick’s commitment to exceptional service, reinforcing their position as leaders in providing a holistic, one firm approach to risk management and benefits services.

Superior Electric has proudly named Jeff Smiley as its new Chief Operating Officer. He will lead operations and drive strategy to advance the company’s growth and market opportunities. Jeff began his career in the electrical field in 1996 and worked his way to become a Master Electrician. Over the past two decades with Superior Electric, he has demonstrated exceptional commitment and leadership in positions as Supervisor, Project Manager, Estimator, Director, and Vice President.

CONSULTING

INSURANCE / BROKERAGE

Ducker Carlisle Kevin Sarb joins Ducker Carlisle, a global consulting and M&A firm, as Managing Director leading the Industrials Practice. He has nearly 20 years of management consulting experience and has led a multitude of engagements focused on profitable revenue growth across several industrial sectors. Kevin holds a B.S. in Medical Science and History from the University of Notre Dame, an M.A. in Applied Economics from the University of Michigan, and an MBA from the University of Chicago Booth School.

HEALTHCARE

MSU Health Care Kristine Allen, RN, MSN, MHA, previously the chief nursing officer, assumed the title of chief operating officer of MSU Health Care. As chief nursing officer, Allen has led the operational goals for the entire enterprise and continued optimization of the MSU Health Care Electronic Health Record platform. Allen has begun to lead the seamless transfer of clinics to the new medical office buildings at 4660 and 4700 S. Hagadorn Rd. as an integral part of the senior leadership team.

Gallagher Benefit Services Gallagher elevates Nancy Snell to Market Leader, National Accts. for GBS MI & OH. In her new role, the focus hasn’t changed – client relationships & developing high-performance teams are a top priority. Nancy will lead a team of diverse National Acct. Consultants who help their clients compete for talent, manage risk, and grow their business. Nancy specializes in using data and technology to develop innovative solutions that align with an organization’s human capitals goals and budgets. INSURANCE / FINANCIAL

NFP CONSULTING

INSURANCE

Ducker Carlisle

LifeSecure Insurance Company

Ashim Talukder joins Ducker Carlisle, a global consulting and M&A firm as Principal where he will focus on helping companies drive value in transactions and transformations through manufacturing and supply chain excellence, product development execution, and strategic sourcing. He has more than 20 years of industry and consulting experience across industrial manufacturing, consumer products & chemicals industries with a focus on developing and executing operational innovations.

LifeSecure Insurance Company has named Jeffrey Young as its new Vice President of Sales. He will drive the development and execution of sales strategies that advance the company’s overall growth objectives, capture new market opportunities, and strengthen relationships with new and existing business partners. Jeffrey has more than 20 years of insurance experience and has held multiple sales leadership roles with large national health carriers.

14 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

Alma Ko is a marketing director for NFP, based in the Royal Oak office. She drives strategies to engage clients and convey expertise and solutions across NFP’s Central region. Alma joined NFP in 2018 when the company acquired Cambridge Consulting Group, expanding her role from local to regional oversight. Her contributions to NFP’s business growth and award-winning culture are increasingly impactful. Alma is also a member of NFP’s DEIB Advisory Board and Chairs the Asian Business Resource Group.

Ogletree Deakins

United Way For Southeastern Michigan

Ogletree Deakins is proud to welcome Patricia “Pat” Leonard as Of Counsel in its Metro Detroit office. A highly skilled labor lawyer with extensive experience in the healthcare industry, Pat was previously the Systems Director of Labor Relations for Beaumont Health (now Corewell Health). Prior to that, she served in several labor relations roles at Detroit Medical Center/Tenet Health, including as the Director of Employee & Labor Relations.

United Way for Southeastern Michigan is delighted to announce that Brandon Lee has been promoted to Chief Operating Officer and Executive Vice President. Brandon now oversees impact, strategy, and operations for the non-profit. At United Way, he has served in several strategic roles and most recently led the organization’s merger with the United Way of Washtenaw County. Brandon is an exceptional leader and innovator committed to improving lives across Southeastern Michigan.

NONPROFIT

Matrix Human Services Matrix Human Services has appointed Starr Allen-Pettway as its new Chief Operating Officer. She holds a master’s in social work with a concentration in mental health from Howard University & a bachelor’s in psychology from Bennet College. Chosen for her experience, expertise, & track record of success in managing multiple programs, facilities, and processes to create a functional work environment for staff, Allen-Pettway will be pivotal in steering Matrix toward new heights within Detroit.

NONPROFIT

United Way For Southeastern Michigan United Way for Southeastern Michigan announced the promotion of Lara Keathley to Vice President, People, Culture & Governance. Lara is a 20-year Human Resources professional with expertise in talent management, employee engagement, and organizational development. At United Way, she has successfully implemented initiatives and strategies to foster a culture of excellence, promote job satisfaction, attract talent, and embrace diversity, and inclusion.

NONPROFIT NONPROFIT

NPower

United Way For Southeastern Michigan

Stephen Ragan joins NPower, a national tech training nonprofit, as Chief External Relations Officer. As CERO, he will lead fundraising and donor engagement, as well as NPower’s growing partnerships with local, state, and federal agencies. Ragan was previously SVP for External Relations at College Possible. He received his bachelor’s degree from the University of Michigan and is a graduate of Harvard University’s Institute for Management and Leadership. Ragan will be based in Detroit.

United Way for Southeastern Michigan has announced Jeff Miles’ promotion to Vice President, Community Impact. A seasoned leader in program development, grant management, and strategic planning, Jeff spearheads United Way’s impact initiatives promoting Stable Households, Thriving Children, and Equitable Communities. His leadership fosters a collaborative and impactful culture among staff, volunteers, and the community, driving positive change in the region.

NEW GIG?

Preserve your career change for years to come. • Plaques • Crystal keepsakes • Frames • Other Promotional Items

C O N TAC T

CONSTRUCTION

NONPROFIT

PRODUCTS

PEOPLE ON THE MOVE

To place your listing, contact Debora Stein at 917.226.5470 / dstein@crain.com

LEGAL

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

Matt Cullen buys Ralph Wilson estate Grosse Pointe Shores property is on Lake St. Clair By Nick Manes

utive did say he will relocate from an existing home in the Grosse Detroit-area businessman Matt Pointe area. The main house, a mid-century Cullen has purchased a lakefront property in Grosse Pointe Shores modern structure built in the that was long owned by the family 1970s, is nearly 5,500 square feet and offers three bedof the late billionaire rooms and five bathphilanthropist Ralph C. rooms. The adjacent lots Wilson Jr. offer a guest cottage and Public records show a farmhouse, and the that an entity tied to Culcombined property oflen — a longtime execufers around 450 feet of tive with several compashoreline on Lake St. nies tied to Detroit Clair, according to a billionaire Dan Gilbert blog post by the Grosse and the current chair of Matt Cullen Pointe Farms-based Higthe Detroit Riverfront Conservancy — just after Thanks- bie Maxon Agney, which listed the giving purchased three properties property. Cullen appears to have acquired along Lake St. Clair in Grosse the properties at a discount. Pointe Shores. Originally listed in January 2020 Cullen — whose day job is chair of Jack Entertainment, the Cleve- at $9.5 million, the home saw an land-based gaming company for- asking price decrease of more merly owned by Gilbert — con- than $3 million in late 2022, as firmed the purchase of the house Crain’s reported at the time. The in a brief call with Crain’s recently. reason for the decrease was that The purchase price for the total of the property with the house was three properties was just more being offered separately from the than $4.6 million, according to two adjacent lots, but all three public records and the transaction were still available with an asking price of $7.5 million, listing agent closed just after Thanksgiving. Beyond expressing excitement Kay Agney said at the time. “It’s a great piece of property at purchasing the three properties totaling about 4.5 acres, Cullen de- and a very special house,” Agney clined further comment on the told Crain’s of the transaction, but transaction at this time. The exec- she declined further comment.

The Grosse Pointe Shores home of the late philanthropist and Buffalo Bills owner Ralph C. Wilson Jr. on Lake Shore Road was first listed for $9.5 million in January 2020. The combined property offers around 450 feet of shoreline on Lake St. Clair. The home features a great room with a wood-paneled cathedral ceiling and views of Lake St. Clair. | PHOTOS BY HIGBIE MAXON AGNEY

Corned beef giant Grobbel acquires processing plant By Jay Davis

A locally owned, fifth-generation food producer is set to breathe new life into a large-scale facility recently vacated by another local brand. Detroit-based E.W. Grobbel Sons Inc. — best known for its corned beef — on Jan. 2 announced plans to expand its operations to include a 90,000-square-foot facility at 20643 Stephens St. in St. Clair Shores. The facility is slated to open in mid-2024 following some modifications, according to a news release. The new facility will initially create 30-40 jobs, according to company President Jason Grobbel. Jobs are available in production, management and administration, he said, and more staff will be added over time. Grobbel’s currently has about 400 employees. Grobbel acquired the St. Clair Shores facility from the Perdue Premium Meat Co., which had been operating an Alexander & Hornung meat processing plant there before its closure in Octo-

ber, which led to the layoff of 132 employees. The financial terms of the acquisition were not disclosed. Taking over the space allows Grobbel to expand production, Jason Grobbel told Crain’s. Grobbel in a statement said the expansion epitomizes the company’s commitment to responsible and purposeful growth. “It opens doors for us to explore new products and markets, ensuring that we evolve while upholding our 140 year commitment to quality and excellence,” Grobbel said. “As we embark on this new chapter, we extend our gratitude to our entire team who have been instrumental in supporting us on this remarkable journey of expansion. “This not only signifies progress but also highlights our dedication to serving this community and enhancing the culinary landscape.” Grobbel on Jan. 2 told Crain’s that the focus in the new facility will be on pre-cooked meats, though raw and deli meats will also be a part of the production process.

Plunkett Cooney law firm names new CEO By Kurt Nagl

E.W. Grobbel Sons Inc. later this year will open a new processing plant inside this 90,000-square-foot St. Clair Shores facility. | COSTAR GROUP

Grobbel brands include Grobbel’s Gourmet, Sy Ginsberg’s Meat & Deli, Topor’s pickle company, Corridor Sausage Co. and Ba-Tampte pickles and condiments. The acquisition of the St. Clair Shores facility marks Grobbel’s second expansion beyond its Eastern Market hub. Grobbel in 2018 added a Taylor facility for manufacturing and distribution. In 2017, Grobbel acquired fellow Detroit corned beef company United Meat and Deli Inc., founded by Sy Ginsberg, for an undisclosed amount. The merger created a company that at the time had $110 million in annual revenue with more than 200 employees during its peak St. Patrick’s Day

season. The expansion into St. Clair Shores comes as Grobbel still plans to add a grocery store and deli in Eastern Market. The project, announced in early 2022, has run into some structural issues with the building but the company plans to see the project through, Jason Grobbel said. That venture calls for the opening of Grobbel’s Gourmet Fresh Neighborhood Market and a Sy Ginsberg-branded Jewish-style deli to open at 2456 Market St. — the former home of Eastern Market Seafood Co. Grobbel this spring also plans to open a graband-go food truck near its Eastern Market hub at Adelaide and Orleans streets.

Plunkett Cooney has selected appellate ace Jeffrey Gerish as the next leader of the Bloomfield Hills-based law firm. Gerish, who joined the firm in 1994 after receiving his license to practice law, took the reins Jan. 1 after shareholders elected him to a three-year term as president and CEO, the firm announced. He replaces Thomas Vincent, who ascended to the role in 2017 and has returned to full-time practice at the firm. “I started my career here at Plunkett Cooney, which I consider to be one of the finest law firms in the nation,” Gerish said in a news release. “I look forward to growing our practice and to continuing our more than 110 years of exceptional service to clients throughout the Midwest.” Gerish will oversee the firm’s 140 attorneys and 300 employees across offices in Bloomfield Hills and Detroit, as well as Chicago, Indianapolis and Columbus. Gerish’s practice focuses on appellate law, with expertise in insurance coverage, commercial liability, employment liability and medical malpractice. JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 15

From Page 1

Electric snow bikes at Boyne Mountain Resort. | BOYNE MOUNTAIN

SKI RESORTS From Page 3

“We’ve actually made quite a bit of snow already, but we haven’t had enough time to get everything open,” he said, noting only about nine of the resort’s 59 slopes were open as of the first weekend of December. “Last year, I think we had a little better startup.”’ MacInnes said Crystal Mountain has benefited over the past few years from warmer Lake Michigan temperatures, because as cold air moves over a warmer lake, the result is more lake effect snow. He said the resort added five snow guns last year, bringing its total number of snowmaking machines up to 177 in an effort to help keep the ski runs freshly powdered. But for the snow machines to work, the resort needs to see temperatures of 28 degrees or colder with less than 80% humidity. MacInnes said he isn’t confident about seeing that cool-down come to pass, as the 2023-24 winter weather outlook from the National Oceanic and Atmospheric Administration is predicting a 40% to 50% chance of above-normal temperatures through the end of February. Jason Perl, general manager of Boyne Mountain Resort, said while he is “optimistic” about this season, sales are trailing slightly behind where they were at this time last year, thanks to the weather. Only about eight of the resort’s 65 ski runs were usable on opening weekend. “In the wintertime, snow really helps drive the business and volume,” he said. As part of a strategy to diversify its offerings beyond snow, the resort in 2022 added the new SkyBridge attraction, a 1,200foot-long, 118-foot-high pedestrian bridge positioned between two peaks overlooking Boyne Valley. In the fall, it drew leaf-peeping crowds. Starting at Thanksgiving, it was decked out with a holiday light display that will last through March. “We’ve got folks driving up from Texas just to visit the SkyBridge, and Illinois, Indiana and kind of 16 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

Top photo: At Crystal Mountain. Bottom: The SkyBridge at Boyne Mountain Resort. | CRYSTAL MOUNTAIN AND BOYNE MOUNTAIN

that whole portion of the middle of the country, which is awesome,” he said. “And the SkyBridge is definitely attracting a new demographic for the resort and the region. When we debuted the SkyBridge (in 2022), some local businesses, like salons and whatnot, were just saying how impressed they were with the (sales) volume that they were doing when they would normally be slow.” Boyne Mountain offers other non-skiing attractions, too, like a zipline adventure, an indoor water park and electric snow bikes called MoonBikes. Still, Perl said he expects inflation and the economy will cause many households to cut back on “bigger trips” this winter. Since about half of Boyne Mountain’s core customer base is outside Michigan, its bottom line could take a hit. The projected dip in spending at ski resorts this season comes after two record-breaking years for

snow sports tourism in the U.S. The National Ski Areas Association reported in August that U.S. ski areas experienced record visitation with an estimated 64.7 million skiers and lift riders during the 2022-23 season, a 6.6% increase over the previous recordbreaking season of 60.7 million skier visits in 2021-22. The Michigan Economic Development Corp. also reported on Nov. 27 that the state’s outdoor recreation economy grew 11.% from 2021 to 2022, the most recent year for which data are available. This contributed $12.36 billion to Michigan’s economy. The top outdoor recreation category by growth percentage from 2019 to 2022 was snow sports. Michigan ranked 11th-fastest growing for that category among all states, with an 88% growth rate. “The industry is healthy … and I think that’s going to be an important story for Michigan’s future going forward,” MacInnes said.

centives for projects … we recognize that it’s also critically important to be strong fiduciaries for the taxpayers of the state.” Novi-based Our Next Energy has had a reality check of its own. The battery startup, which was awarded a $237 million incentives package for a planned $1.6 billion factory in Van Buren Township with 2,100 jobs, laid off a quarter of its staff in November. Shortly after, it demoted its founder and CEO amid fundraising woes and the industry’s EV setbacks. The fate of its big expansion plans now faces serious questions. Chinese manufacturer Gotion Inc., which won $715 million of incentives for a $2.4 billion battery plant and 2,350 jobs near Big Rapids, has yet to begin construction. The project, subject to ongoing controversy, has seen a series of delays. Despite opposition to the project, which led to a recall of a local township’s entire board, company officials say the project is still a go. “Gotion Inc. is working through state and federal requirements to prepare for groundbreaking planned for summer 2024,” spokesman John Whetstone told Crain’s in an email. “In the immediate future, Gotion expects to finalize its timber partner this year and start selectively cutting trees on-site in early January, if not sooner.” Elsewhere on the west side of the state, industry uncertainty has led to job loss. LG Energy Solution, whose large-scale expansions are backed by tens of millions of dollars in incentives, said in November it would lay off 170 employees due to the EV slowdown. The company announced in October a $3 billion expansion to supply Toyota with lithium-ion battery modules, in addition to the $1.7 billion expansion project announced in 2022. Barrott, the automotive consultant, said slower than anticipated adoption is not necessarily alarming. By the end of last year, EVs were expected to ac-

Until that changes, the mass market won’t budge. “What you have is a Catch-22 of sorts,” Barrott told Crain’s. “You can’t have price reduction until you get to scale. With a very high price, the OEMs are struggling to get to scale and struggling to recoup their investments because it’s spread across such a small volume.” Despite industry turbulence, Michigan is moving forward aggressively to win more projects in the EV/mobility space and beyond, said Josh Hundt, executive vice president and chief projects officer for the Michigan Economic Development Corp. “While we know that the adoption of EVs is growing at a slower than originally anticipated pace, the market is still demonstrating a steady annual growth trend,” Hundt told Crain’s. “What we’ve recognized is that we need to be nimble, and we need to be focused on building a sustainable future.” Since 2021, Michigan has committed nearly $5 billion of incentives to land major EVrelated projects totaling $14.7 billion in corporate investment in the state, according to data from the Center for Automotive Research. Georgia, the winningest state for EV plants, spent about $1 billion less to land $20 billion in corporate investment. Skeptics have long questioned the return on investment on incentives for these so-called mega projects. The uncertainty clouding projects in Michigan raises even more questions about whether Michigan will get its money’s worth. In response to losing Ford Motor Co.’s $11 billion investments in Kentucky and Tennessee in 2021, Michigan rolled out the Strategic Outreach and Attraction Reserve package — a $1.5 billion “toolkit” to land EV projects. The SOAR funding was a major chunk of the state’s $1.7 billion incentives package — the largest subsidy approved by any state last year — for the Ford-CATL battery plant in Marshall. Ford announced in November that the plant, initially a $3.5 billion investment with 2,500 jobs, would be reduced to — Mark Barrott, Plante Moran roughly $2.2 billion and 1,700 count for 7.3% of all new vehijobs. The MEDC is in the process of cles sold in North America, redrafting an incentives package about 1 percentage point lower agreement to reflect the down- than projected. Sales in 2024 are sized plant, Hundt said. It will also expected to be lower than require Michigan Strategic Fund anticipated. Automakers are scheduled to board approval, though the timroll out less costly electric moding of that vote is uncertain. Hundt said the state does not els next year that are much closer disburse incentive cash until in price to gas platforms. Conmilestones are met, and consumer response will determine tracts include clawback provi- whether the EV sales slowdown today is because of price or flatsions. “All of our incentive packages out consumer rejection, Barrott are performance-based, which said. If the latter, Michigan’s big means the companies must meet EV projects — and the industry’s certain investment and job- clean energy revolution writ creation milestones before any large — are in trouble. “My theory is it’s much more disbursement is made,” he said. “While we want to ensure we are price-focused right now,” Barrott providing a competitive set of in- said.

“You can’t have price reduction until you get to scale.”

AIRPORT

and safety while introducing unique recreational activities, such as drone parks.” Romulus is a participant in the Detroit Region Aerotropolis, a four-community, two-county public-private economic development partnership with the Wayne County Airport Authority. The Detroit Region Aerotropolis is “a collaborative effort to transform the region into a manufacturing, logistics and aviation hub,” according to the release. Drones won’t be the only objects taking to the skies in the new year. In September, the airport announced three airlines will add new flights to and from DTW.

From Page 3

In September, DTW shared on X that a new Starbucks opened in the McNamara Terminal near the Gate Central Link area. The addition is the sixth for the Seattleheadquartered coffee company in the Detroit airport. The others are in the Evans Terminal at Gates D26 and D10, Concourse A at Gates 20 and 61 and Concourse B Gate B8, according to the Starbucks website. Morawski said the airport anticipates “a modest growth in operations” in 2024. In 2022, 28 million passengers flew through the airport. Numbers were not yet available for 2023. On Dec. 8, the Federal Railroad Administration granted the Ohio Rail Development Commission up to $500,000 to begin planning for a proposed Cleveland–Toledo– Detroit/Pontiac Amtrak corridor. The “vision” includes a connection from Detroit to the airport, but whether the rail link will come to fruition will be determined as part of the planning process.

. . . and to new flights

Travelers walk past the baggage claim carousels at Detroit Metro Airport. | BLOOMBERG

Taking to new heights . . . The city of Romulus announced the expansion of drone-accessible airspace near DTW on Dec. 4. The Federal Aviation Administration implemented the proposed changes to the Low Altitude Authorization and Notification Capability grid ceilings near Metro Airport. The changes modified 22% of the flight grids from zero to a minimum of 50-foot ceilings and improved accessibility across 13.92 square miles of the city. Romulus received funding from its Tax Increment Finance Authority to support the expansion of

A new Starbucks shop opened in September near the Gate Central Link area in the McNamara Terminal at Detroit Metro Airport. | LAURÉN ABDEL-RAZZAQ

GREENWAY From Page 1

And in December, it hosted a holiday gathering with Santa, coloring for kids and warm drinks provided by local small business Detroit Cocoa Bar at the newly opened Warren Gateway trailhead along the Detroit-Dearborn border. All Things Detroit helped connect JLGP to the local business and engaged The Coloring Museum, which operates from the Grand River WorkPlace, to provide activities for children at the event last month, Medley said. “One of the things I’m trying to figure out is how do we activate into the cold weather. I’m really concerned about social isolation,” she said. “We have markets in Cadillac Square and downtown. What does that look like on the greenway?” The goal is about creating a destination “and doing it in such a way that really enhances the local economy and really begins to provide some things people in neighborhoods want to see, (like) a place to go to get a doughnut and a cup of coffee.” The strategy of providing space for local entrepreneurs and community organizations to showcase their products and talents is some-

drone-accessible airspace and partnered with Airspace Link Inc., a drone integration company based in Detroit. According to the news release, this expanded drone-accessible airspace will enable local businesses and individuals to explore various unmanned aircraft systems technologies. “The applications are diverse, encompassing everything from medical and package delivery to infrastructure inspection and public safety use cases,” the release said. “This change is anticipated to fuel economic expansion, stimulate job growth, forge new educational avenues in science, technology, engineering and mathematics, and is likely to bring improvements in public health

Aeromexico will offer direct flights to Queretaro, Mexico, in January and Guadalajara, Mexico, in March. The flights Aeromexico currently offers to Queretaro and Guadalajara include layovers in cities in the U.S. or Mexico. Mexico Citybased Aeromexico already offers flights from Detroit to cities throughout Latin America and Europe. WestJet, which is headquartered in Calgary, Canada, began operations at DTW in May and introduced nonstop flights from Calgary to Detroit. In April, WestJet will continue to expand and offer a new daily nonstop flight to Vancouver. Delta Air Lines, the airline giant headquartered in Atlanta, will resume flights between Detroit and Anchorage, Alaska, and Sacramento, Calif., in the summer. The flights will be daily, nonstop and begin June 7 and July 8, respectively, according to the Delta website. Both flights were previously halted indefinitely due to a lack of resources, a Delta spokesperson told Crain’s in an email.

former Conrail rail corridor from Conservancy are teaming up West Warren to Joy, 8.2 miles of through the Unified Greenway the Joe Louis Greenway have been Partnership to raise $350 million to completed, the city said. An addi- complete the Ralph C. Wilson Jr. tional 2.3 miles of the 6.6 miles un- Centennial Park on the west riverder construction are expected to front, finish construction of the be completed this year and an ad- greenway and fund a joint $100 million endowment to provide perditional 3.1 miles next year. “The pace of the Joe Louis Gre- petual maintenance and programenway construction is going excep- ming of the riverfront, Dequindre tionally well and when it’s done, it Cut and Joe Louis Greenway. As of January 2023, the effort had may be the most transformational neighborhood-level project the secured $140 million in public city has ever seen. Residents living commitments and planned to puralong the sections of the greenway that have been completed or are under construction between Warren and I-96 are thrilled with the change they have seen. And we are doing demolition and debris removal along more than five miles of the path be- — Brad Dick, COO, city of Detroit tween Davison and McNichols right now,” Brad Dick, COO for sue about $60 million in additional the city of Detroit, said in an public funding and $150 million in philanthropic commitments. emailed statement. The JLGP and Detroit Riverfront “On just the sections we started or completed, crews have re- Conservancy did not immediately moved more than 30,000 illegally comment on the amount raised dumped tires and hundreds of over the past year. “Since the Unified Greenway thousands of tons of other debris. Instead of having to look at that Campaign announcement in every day, residents will be seeing spring 2023, our momentum and and have access to a world-class engagement with supporters has recreational trail right in their continued, and we look forward to sharing an update on our camneighborhood.” The JLGP and Detroit Riverfront paign soon,” Pasco said.

“When it’s done, it may be the most transformational neighborhood-level project the city has ever seen.”

Santa visited with young people at a December event along the Joe Louis Greenway in Detroit. | JOE LOUIS GREENWAY PARTNERSHIP

thing the Detroit Riverfront Conservancy has been doing along the east RiverWalk and Dequindre Cut, said Marc Pasco, director of communications for the conservancy.

With the previously completed Dequindre Cut, east Detroit RiverWalk, Southwest Greenway, Joseph Campau bike lanes, West Grand Boulevard bike lanes and

JANUARY 8, 2024 | CRAIN’S DETROIT BUSINESS | 17

THE CONVERSATION

Rebel Nell’s Amy Peterson on changing her jewelry business with the times Rebel Nell owner Amy Peterson is changing her Detroit-based graffiti jewelry business to fit the times. Peterson, celebrating 10 years in business, recently added “experiences” to Rebel Nell’s list of offerings, including making murals and design-your-own jewelry. The new options come as a lack of foot traffic continues in parts of the city. In a conversation with Crain’s, Peterson, who also coowns Detroit cafe The Congregation, dished on her business model, the state of retail and future plans for Rebel Nell. | By Jay Davis You made some changes to your business (in 2023): build-your-own jewelry, mural making. Why’d you add those offerings? People are changing their shopping habits and leaning into experiential retail, and events are growing in popularity and demand. Locally, coming out of the pandemic, I love that people want to be together and experience Rebel Nell firsthand, so we created several special ways to interact with our brand. We launched Design Your Own Jewelry at our downtown store in Parker’s Alley where you can create your own piece of jewelry from repurposed graffiti. It’s great to treat yourself or do it with a group. I think we offer the perfect Detroit souvenir because you literally own a piece of the city. We also offer experiences that create conversation and connection through muralmaking and empowering exercises. We can host up to 35 people at our Holden manufacturing event space or bring the mural-making to you. It’s perfect for team building, gettogethers, board retreats, birthday parties. We’ve created murals at several keystone events ... like the Ally Women’s Basketball TipOff in Charlotte, JP Morgan Chase Women On The Move event. We can even repurpose the remnants of the mural into keepsake gifts. We have a Young Rebels program geared toward empowering young kids between 8-18 with uplifting and selfawareness activities and lessons in entrepreneurship. We can do permanent jewelry, too, where bracelets are welded onto your wrist. These are all very special bonding experiences that allow us to amplify our message. Ten years into owning and operating Rebel Nell, have things gone about the way you thought they would? We’ve had our fair share of challenges but I’m proud of where we are. Rebel Nell started as a business helping women in Detroit and now is a nationally recognized symbol of what we’re all capable of, and the power within all people to create change. We’ve grown beyond our mainstay of incorporating fallen graffiti into our products and added more iconic landmark collections that mean something to people like the Thanksgiving parade, Riverfront Conservancy, Michigan Central. We’ve also

Executive editor Mickey Ciokajlo, (313) 446-0319 or mickey.ciokajlo@crain.com Managing editor Michael Lee, (313) 446-1630 or malee@crain.com Director of audience and engagement Elizabeth Couch, (313) 446-0419 or elizabeth.couch@crain.com Creative director Thomas J. Linden, tlinden@crain.com Audience engagement editor Matthew Pollock Assistant managing editor Beth Reeber Valone Assistant managing editor-special projects Leslie Green Projects editor Stacy Sominski Associate creative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Senior digital news designer Stephanie Swearngin Design and copy editor Beth Jachman Research and data editor Sonya Hill Notables coordinator Ashley Maahs Newsroom (313) 446-0329 REPORTERS Jay Davis, restaurants, retail and small businesses, (313) 446-1612 or jason.davis@crain.com David Eggert, politics, policy and energy, (313) 446-1654 or david.eggert@crain.com Anna Fifelski, banking, investment and innovation anna.fifelski@crain.com Jack Grieve, audience engagement, jack.grieve@crain.com Nick Manes, residential real estate and mortgage industry, (313) 446-1626 or nmanes@crain.com Kurt Nagl, manufacturing, law and courts, (313) 446-0337 or knagl@crain.com Kirk Pinho, real estate, (313) 446-0412 or kpinho@crain.com Dustin Walsh, health care and cannabis, (313) 446-6042 or dwalsh@crain.com Sherri Welch, nonprofits, philanthropy and higher education, (313) 446-1694 or swelch@crain.com

Rebel Nell founder Amy Peterson hires women facing barriers to make a lasting impact on the community. | REBEL NELL

“We’ve had our fair share of challenges but I’m proud of where we are.” stayed fresh by diversifying our designs. We have added the different experiences to grow our message of support and uplifting each other to a wider audience. And our International Women’s Day event in March continues to grow and be a voice for empowering women. Some of your more recent pieces, what Detroit landmarks are they made from? We’ve had some fun collaborations in the last year. We’ve put out limited edition collections with the Grand Hotel on Mackinac Island, the Belle Isle Conservancy using the glass from the Conservatory, the Detroit Lions using historic jackets. We’ve also worked with nationally known artists like (Detroit-based) Ouizi and (graffiti artist) Lady Pink. That’s the fun part. We get to look at the world from a different lens. We see the beauty and memories in things that would otherwise be discarded. In the 10 years you’ve been

Read all the conversations at CrainsDetroit.com/TheConversation 18 | CRAIN’S DETROIT BUSINESS | JANUARY 8, 2024

CrainsDetroit.com President and CEO KC Crain Group publisher Jim Kirk, (312) 397-5503 or jkirk@crain.com

open, you’ve helped bring 40 women out of homelessness. How does that make you feel? I started Rebel Nell from an idea I had when I was on a run. I thought about combining the beautiful fallen graffiti from murals with my desire to help the women who lived next to me at a shelter. We get so caught up in all the things we haven’t done but it’s important to pause for a second and look back over the last decade and celebrate all we’ve achieved. We have lifted 43 women out of shelter living with our efforts and made a real difference for them, and impacted the lives of more than 280 people. Not a single woman we have employed has returned to shelter living. We have provided more than 36,000 skills development hours, 135,000plus workforce development hours and donated more than $100,000 to different community organizations. In 2016, we launched TEA (Teach. Empower. Achieve) as a workforce development nonprofit to help ensure women who need it have the opportunities and support to live independently and positively. How many of those women are still with the company? Our creative designers continually join us, get settled

with their lives and move on to bigger and better careers about 18 months after they start working with us. We’re a transitional employer, meaning we offer an understanding workplace that not only provides employment but also works alongside the participants to address barriers that have held them back in the past from securing traditional employment. We get them on the pathway to self-sufficiency. Some graduate into upper-level jobs within Rebel Nell, but others go on to pursue jobs more in line with their personal career goals. We want to be the launch pad for their success. What do you see for Rebel Nell in the next 10 years? I am ready to scale Rebel Nell and help more women. I feel the last few years have derailed our growth plans but now we’ve regained our footing and are looking to grow in a big way. I want to expand our footprint with more retail stores with the Design Your Own Jewelry experience and expansion into other cities. I’d also like to add more sales team members who can focus on our growth plans. We’ve dabbled in special projects for women in Atlanta and Chicago. If we could help lots more women, we will have succeeded.

ADVERTISING Senior vice president of sales Susan Jacobs, (312) 649-5492 or susan.jacobs@crain.com Sales director Bernie Barnes Munk, (206) 310-0313 or bernice.munk@crain.com Michigan events director Samantha Flowers, samantha.flowers@crain.com Events planner Isabella Kulchycki, isabella.kulchycki@crain.com Senior account executives Maria Marcantonio, Sharon Mulroy Account executives Ainsley Burgess, Tawni Sharp People on the Move manager Debora Stein, (917) 226-5470 or dstein@crain.com Classified sales Suzanne Janik, (313) 446-0455 or sjanik@crain.com Sales assistant Rachel Smith CRAIN’S CONTENT STUDIO Senior director of Crain’s Content Studio Kristin Bull, (313) 446-1608 or kbull@crain.com Crain’s Content Studio manager Clare Pfeiffer Content marketing specialist Allie Jacobs PRODUCTION Vice president, product Kevin Skaggs Product manager Tim Simpson Media services manager Nicole Spell CUSTOMER SERVICE (877) 824-9374, customerservice@crainsdetroit.com Reprints Laura Picariello, (732) 723-0569, lpicariello@crain.com

Crain’s Detroit Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice chairman Mary Kay Crain President and CEO KC Crain Senior executive VP Chris Crain Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Volume 40, Number 1 Crain’s Detroit Business (ISSN 0882-1992) is published weekly, except no issues on 1/1/24, 7/8/24, 9/2/24, 12/2/24 nor 12/30/24, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. © Entire contents copyright 2024 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited. Subscriptions: Classic Print+Digital $189/yr. | All access + Data $499/yr. www.crainsdetroit.com/membership or (877) 824-9374 Group and Corporate Membership Sales Deb Harper, (313) 446-1623 or dharper@crain.com. GST # 136760444. Postmaster: Send address changes to Crain’s Detroit Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2732.

SHOWCASE INDUSTRY LEADERS AND THEIR CAREERS RECOGNIZE TOP ACHIEVERS IN DETROIT’S PREMIER PUBLICATION

New Hires / Promotions / Board Appointments Retirements / Special Acknowledgements

MAKE AN ANNOUNCEMENT Debora Stein / dstein@crain.com CrainsDetroit.com/POTM

ability kes an

NOTABLE LEADERS IN SUSTAINABILITY Nominate a leader who leads sustainability initiatives at an organization and makes an environmental impact.

NOMINATE BY FEB. 9 CrainsDetroit.com/ NotableNoms