Crain's Detroit Business, Jan. 31 2022 issue by Crain's Detroit Business

NEW SPROUTS: Dispensary grows as medical pot sales fade. PAGE 3

THE CONVERSATION Sue Harvey: Industrial isn’t just auto anymore. PAGE 22

JOBS FOR THE FUTURE FORUM KNOWLEDGE ECONOMY

Michigan’s biggest companies have made some big bets in the state: ` Ford with its revamp of the Michigan Central Station to plot out the future of mobility. ` GM with its announcement of billions in EV manufacturing investments. ` What kinds of jobs should Michigan target going forward? PAGE 10

NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

CRAINSDETROIT.COM I JANUARY 31, 2022

A real estate veteran finds her way back after immense loss After death of husband, son, father, ‘I decided I have too much left to do’ BY KIRK PINHO

Barbara Eaton has had to rewrite her story before. A career change after she had her children, a dissolved marriage, finding new love with an athletic man with a buttery Tennessee drawl and blending their broods: Two sets of twins and two other kids. A Brady Bunch-style clan.

But when members of three generations of that large, close-knit family died within a four-month window, the immensity of Eaton’s loss, its rapid-fire succession, could have been enough to cripple her. Or anyone. Instead — after burying her husband, Gary Eaton, 74; and then her son, Jarrod Champine, 37; and then her father, Joseph Gares, a 97-year-

NEWSPAPER

old World War II veteran, as a global pandemic began and subsequently raged in 2020 — the 65-year-old commercial real estate brokerage mainstay has taken a new job as executive vice president in the Southfield office of Colliers International Inc., where she spent five years earlier in her career. See EATON on Page 17

Colliers International Detroit Executive Vice President Barbara Eaton lost her husband, son and father in rapid succession. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

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NEED TO KNOW

VENTURE CAPITAL

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT ` HENRY FORD, MSU TO BREAK GROUND ON DETROIT INSTITUTE

WHY IT MATTERS: Henry Ford Health System wants to be a national player in the same conversation with the likes of Mayo Clinic, Johns Hopkins, Massachusetts General and Michigan Medicine.

` BARRA, REUSS TAKE 1ST SOLO DRIVE IN AUTONOMOUS VEHICLE THE NEWS: General Motors Co. CEO Mary Barra said her first ride in a completely driverless car was “nothing short of incredible.” For GM President Mark Reuss, the experience was “mind-blowing.” A video posted Thursday by Cruise, the self-driving vehicle company that’s majority-owned by GM, showed the executives trying out autonomous technol-

ogy for the first time with no one in the front seat. WHY IT MATTERS: Convincing drivers that an autonomous vehicle can be safe is seen as an ongoing challenge for the nascent industry. Cruise has been testing vehicles at nighttime in San Francisco without safety drivers since the middle of last year.

` RESTAURANTS TAKE ANOTHER HIT FROM OMICRON THE NEWS: The first round of Restaurant Revitalization Fund funding saved more than 35,000 jobs in Michigan and helped 94 percent of recipients of a grant stay in business amid the COVID-19 pandemic, according to a new survey conducted by a trade group. But the $28.6 billion federal effort to rescue struggling businesses as part of the American Rescue Fund didn’t reach everyone. Four out of five businesses nationwide that did not receive grants said they were in danger of permanently closing in 2022, Bloomberg reported.

` Southeast Michigan cybersecurity companies continue to be the object of investor affection, to the tune of nearly $40 million last week. Two companies — the Ann Arbor-founded Censys Inc. and AaDya Security Inc. in Detroit — have connections to one of the original cybersecurity businesses in the region, and both announced substantial rounds of growth capital this week. Censys, a University of Michigan spinout focused on monitoring clients’ various internet-connected devices for potential vulnerabilities, on Thursday morning announced a $35 million Series B fundraising round led by the venture capital round of Intel Corp., as well as other investors. Meanwhile, AaDya, which is focused on catering its software to smalland-medium-size businesses as opposed to larger enterprise organizations, has closed on a $3.1 million seed round. Neither company disclosed a valuation at which their rounds were raised.

` MSU GETS $25M FROM MOTT FOUNDATION IN FLINT THE NEWS: Michigan State University will expand its public health campus in Flint thanks to a $25 million grant from the Charles Stewart Mott Foundation. The grant, which was announced in a press conference Wednesday, will support 18 new tenure-tracked positions in Flint and the expansion of public health programming. There will be 70 faculty overall in the city at the university’s college of human medicine.

GETTY IMAGES/ISTOCKPHOTO

THE NEWS: Henry Ford Health System plans to break ground on its joint research institute with Michigan State University in the next 18 months. The new 300,000- to 400,000-square-foot building will be located south of the health system’s Detroit campus on West Grand Boulevard and will house researchers and physicians on translational research — specifically looking at cancer, neuroscience, women’s health, imaging and public health. The building will require an investment of $100 million to $150 million.

Cybersecurity firms net investments

WHY IT MATTERS: The restaurant industry, already hit hard by the nearly 2-year-old coronavirus crisis, has been hurt again by the latest surge of the highly contagious omicron variant.

WHY IT MATTERS: The grant, the largest in the MSU medical school’s history, is aimed at improving public health in a city still dealing with the aftereffects of a lead-tainted water crisis.

` WAYNE COUNTY MAKES MOVE TO STEM FORECLOSURES THE NEWS: The Wayne County Treasurer’s Office will now automatically enroll people who got help paying property taxes in a statewide payment program that eliminates delinquent property tax penalties. If a Detroit homeowner receives a

Homeowner’s Property Exemption, they will automatically start the Pay as You Stay process created in a bill Gov. Gretchen Whitmer signed in 2020 that had been pushed by Detroit and Wayne County in an effort to

stem the tide of the foreclosure crisis. WHY IT MATTERS: It’s a complicated process and homeowners at risk of foreclosure previously had to enroll in both of these programs.

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2 | CRAIN’S DETROIT BUSINESS | JANUARY 31, 2022

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CANNABIS

HOUSING

The Reef grows even as medical marijuana sales fade BY ANNALISE FRANK

With cities on the edges of Detroit amassing recreational cannabis stores while the city lags behind in litigation, sales aren’t great at The Reef. But the Eight Mile Road dispensary business is still moving up. Cannabis businesses in Detroit are limited to medical sales for now, meaning it can be easier for customers to head north to Hazel Park or southwest to River Rouge for their flower. It’s been an undeniable strain on places like The Reef, which has been on Eight Mile in Detroit since 2016, long before voters approved recreational marijuana in 2018. Rush Hasan, the company’s chief operating officer, said that by 2018 the store was seeing gangbuster sales, with people waiting in line up to 45 minutes to enter. The Reef has since expanded to Muskegon Heights on the west side of the state and is becoming vertically integrated. Widespread legal use brought the promise of a booming pot industry for Detroit, but its ordinance governing how recreational cannabis would be sold to the masses, and who would be able to do that selling, has been held up in litigation since last year over the legality of its rigorous equity program. It’s unclear when an updated ordinance may be introduced to Detroit City Council, let alone when one may take effect. Sales at The Reef, in a building painted navy blue and with a mural of a deep sea diver, have dipped around 66 percent since 2018, Hasan said. He’s an owner in the Muskegon Heights location but not the Detroit one, which is owned by CEO Tony Czuchra. See THE REEF on Page 19

Geraldine Smith-Bey joins a demonstration on Woodward Avenue in October organized by Charlevoix Village Association and other neighborhood groups to demand affordable housing for Detroiters, reparations for overtaxation and grants for home repairs. | AMY SENESE

KEEPING HOUSING AFFORDABLE

Detroit lauds plan to prevent residents’ displacement, but critics say it’s insufficient BY ARIELLE KASS AND ANNALISE FRANK

Julie Schneider

As property values in Detroit continue to rise, fueling concerns about gentrification, Mayor Mike Duggan’s office said this month that he has a solution that’s the envy of other cities’ leaders: a plan to prevent displacement. That 2018 document lays out goals that city officials say they are on track to reach: Keep 10,000 existing affordable units, including by improving conditions in some units that might otherwise be sold

and renovated into market-rate apartments, and build 2,000 more. It was a stretch goal when it was created, said Julie Schneider, the director of Detroit’s Housing and Revitalization Department. But by the end of 2023, when the five-year plan ends, she “absolutely” thinks the city will have succeeded. Some activists laud the effort the city is making, saying the need is so vast that it can sometimes feel insurmountable. But for many others, the city’s boasting is premature. Detroit has a plan to prevent displacement? Not one that’s working, they say.

A Jan. 12 tweet from Duggan’s account following a $10 million commitment to the Detroit Housing for the Future Fund highlighted the divide. “When I talk to other big city mayors, the one thing I have heard consistently is that they wish they had developed a plan to prevent gentrification and displacement of lower income resident as their cities revitalized,” the tweet reads. “That’s a mistake we are not making in Detroit.” See HOUSING on Page 18

NONPROFITS

Detroit2Nepal bringing model to improve health care to Detroit BY SHERRI WELCH

A foundation that spurred greater health care access for villagers in eastern Nepal is now planning to bring that same model to Detroiters. Detroit2Nepal’s goal is to improve health care access and uptake in the city, something that’s lacking for a variety of reasons — from transportation barriers to past discrimination, mistrust and lack of awareness about available care, said founder Richard Keidan, a surgical oncologist at Beaumont Health. To help remove barriers, Detroit2Nepal is teaming up with fellow nonprofit Brilliant Detroit to identify a trusted, woman volunteer in target Detroit neighborhoods and train her to provide health education and referrals to available resources.

Detroit2Nepal Foundation Founder and Director Richard Keidan(left) and Brilliant Detroit CEO Cindy Eggleton at Brilliant Detroit’s Fitzgerald house in Detroit. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

It’s tapping graduate students at Wayne State University to help develop training for the women in each neighborhood and the Michigan Healthcare Professionals physicians group, which has formal agreements to mentor WSU medical students in community health work. The neighborhood health workers will be the first line for medical education and referrals, just like the women volunteers in Nepal, Keidan said. In the remote Himalayan villages in the country, women volunteers have helped culturally integrate western medicine with the traditional medicine of shamans, prayers and herbs in a culturally sensitive way, he said. “The key is they’re trusted members of the community.”

Finding a model Keidan founded Detroit2Nepal in 2010 after seeing a need for it firsthand while on a hiking and climbing trip in the country the year before. Among other support functions, it has built a dozen or more schools, medical clinics and birthing centers in the South Asian nation. A “mom and pop organization” where Keidan does fundraising and grant writing and his wife handles administrative needs, Detroit2Nepal operates on a budget of between $200,000 and $250,000 each year with a skeleton crew in Nepal and plenty of volunteers. A decade ago, Keidan, a Crain’s Health Care Hero in 2019, and his See NEPAL on Page 19 JANUARY 31, 2022 | CRAIN’S DETROIT BUSINESS | 3

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REAL ESTATE INSIDER

This building in Midtown has been listed for sale for $7.5 million, a year after its ownership group said it was courting a grocery store to move into it. | COSTAR GROUP INC.

Owner of former Union Street space tests market with listing An owner of a Midtown building that was envisioning converting it into a grocery store has put it up for sale. Mario Kiezi is asking $7.5 milKirk lion for the former PINHO home of the Union Street Detroit restaurant, which permanently closed over the summer, and the Midtown Liquor & Deli store whose owner Kiezi says is retiring. It is being listed by O’Connor Real Estate based in Detroit. Kiezi said that he has been receiving unsolicited offers for the building and decided to hire a broker rather than do an off-market transaction.

“THE VIABILITY AND POSSIBILITY OF A GROCERY STORE STILL TAKING THE ENTIRE PREMISE IS VERY MUCH A POSSIBILITY.” — Mario Kiezi, building owner

“Developers of all sizes are active and we’ve had countless people that have reached out to us,” Kiezi said. He also said that just because he is listing the building doesn’t mean that it’s “no, siree” to grocery at that spot because in the last few weeks he has toured it with two unnamed regional grocers. “The viability and possibility of a grocery store still taking the entire premise is very much a possibility,” Kiezi said.

A year ago, Kiezi said the two-story building would be renovated for a “future grocer” and submitted plans to the city to do that. Kiezi said “general cleanup” has taken place in the building in the time since but not a substantial renovation. The property, owned by KP Detroit Holdings LLC, sits at Woodward Avenue at Willis Street across from the Majestic Theatre complex. Grace Harper Florist Inc. had been a tenant in the building but moved out in 2018. While the first floor has had various commercial uses over the years, the top floor has been empty since the late 1960s, when eight residences were last used, according to Historic District Commission documentation from architecture firm Quinn Evans.

The building is in the Willis-Selden Local Historic District, which has “one of the city of Detroit’s largest concentrations of architecturally significant, late 19th century and early to mid-20th century buildings of mixed use,” according to a 2010 report on the district. One of the buildings that’s part of the overall structure was built as the Watkins & Ratcliffe hardware store around 1908.

New multifamily brokerage forms with industry veteran Global Real Estate Advisors, a new multifamily brokerage firm, launched earlier this month with a local industry veteran at the helm of its Detroit

and Chicago offices. Cary Belovicz’s brokerage was previously Bel Real Estate Advisors based in West Bloomfield Township. “We are a team of like-minded brokerages who came together with a shared vision of creating more value for our clients by offering a national platform to market and purchase assets while maintaining superior service at the local level,” Belovicz said in a press release. There are nine other offices, with locations in Atlanta, Austin, Dallas, Hilton Head, Houston, Miami, New York, Philadelphia and Portland. In 2021, the brokerages had combined asset sales of $4.5 billion, the release says. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

REAL ESTATE

One-time Birmingham Google office sells for $46.75 million THE BUILDING HAD BEEN OWNED BY BOSTON-BASED INTERCONTINENTAL REAL ESTATE CORP. SINCE 2007, WHEN IT PAID $38.2 MILLION FOR IT, ACCORDING TO COSTAR GROUP INC.

BY KIRK PINHO

The downtown Birmingham office building that once housed Google Inc.’s local sales force has sold. The sale of the 126,000-square-foot office and retail building at 325 N. Old Woodward Ave. closed earlier this month for $46.75 million, said Simon Jonna of The Jonna Group, a division of Colliers International Inc. which worked on the deal. City of Birmingham staff said the sale to 325 Owner LLC was dated Jan. 10, and they confirmed the purchase price. That entity is registered to Gregory Erne, principal of Royal Oak-based developer and landlord Versa Real Estate. An email was sent to Erne seeking comment. The building had been owned by Boston-based Intercontinental Real Estate Corp. since 2007, when it paid $38.2 million for it, according to CoStar Group Inc., a Washington, D.C.-

based real estate information service. It’s currently occupied by a local office of Swiss bank UBS Financial Services Inc., St. Petersburg, Fla.based Raymond James Financial Inc. and other office tenants, plus has the Fleming’s Prime Steakhouse & Wine Bar restaurant on the first floor, CoStar says. The property, built in 1980, is managed by the Southfield office of Transwestern. This building, formerly home of the Google Inc. local sales office, has been sold for just shy of $47 million. | THE JONNA GROUP

Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

4 | CRAIN’S DETROIT BUSINESS | JANUARY 31, 2022

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HEALTH CARE

Henry Ford, MSU look to break ground on research institute New 300,000- to 400,000-square-foot building to house researchers, physicians BY DUSTIN WALSH

Henry Ford Health System plans to break ground on its joint research institute with Michigan State University in the next 18 months. The new 300,000to 400,000-square-foot building will be located south of the health system’s Detroit campus on West Grand Boulevard and will house researchers and physicians on translational research — specifically looking at cancer, neuroscience, women’s health, imaging and public health. The original agreement letter Kalkanis of intent with MSU included a 200,000-square-foot research institute, but MSU decided it wanted more space, said Steven Kalkanis, president of the Henry Ford Health and MSU Health Sciences joint venture. The building will require an investment of $100 million to $150 million. Funds will come from the partners — both MSU and HFHS contributed $30 million into the ongoing joint venture — as well as from corporate partners, donors and tax breaks from the city and state, said Kalkanis, who

Henry Ford Health System and MSU also plan to launch a four-year medical school in Detroit. | HENRY FORD HEALTH SYSTEM VIA FACEBOOK

is also CEO of Henry Ford Medical Group and senior vice president and chief academic officer at HFHS. Final architectural plans are being drafted and the system expects a completion date in 2025. Simultaneously, the health system will launch a four-year medical school in Detroit. HFHS physicians and nurses will act as faculty in the program that will house upward of 25 students in human medicine and another 50 in osteopathic medicine,

FINANCE

Kalkanis said. “We see the next frontier of research in bringing health to the people,” said Norman Beauchamp, executive vice president of MSU Health Sciences. “Henry Ford brings to us the scale and scope on the delivery side. They have a well-established history of being a health system that also embraces discovery. Bringing those together, we can direct health discoveries and continue to train the next generation of clinicians and re-

ally these pathways programs for young people in Detroit.” The research institute and medical school will mimic MSU’s venture with Spectrum in Grand Rapids. The pair built a $250 million innovation park more than a decade ago that has attracted significant investment in the region. Last year, pharmaceutical manufacturer Perrigo Co. broke ground on a new 125,000-squarefoot headquarters at the innovation park. “I see the same thing happening in Detroit,” Beauchamp said. “We can create opportunities like this in Detroit and propel the health care sector in Michigan forward and lead to social demographic and economic change.” Henry Ford Health System wants to be a national player in the same conversation with the likes of Mayo Clinic, Johns Hopkins, Massachusetts General and Michigan Medicine. Kalkanis believes this partnership can push the health system into that upper echelon of providers in the country. “There is no major city without a world-class medical center,” Kalkanis said. “We are, 100 percent, aspiring to be a national destination. Not every one of the top institutions has an equal commitment to the community like we do, and we think we can work both sides of that spectrum to

become a new national standard.” The venture has the ability to create a grant-receiving powerhouse that builds on itself. Prior to the deal last year, MSU was the 60th largest receiver of National Institute of Health grants in the country and HFHS was 70th, Kalkanis said. NIH has since allowed the venture to be calculated as a combined entity, propelling the institution in the top 30 of NIH grant recipients. “This gave us significant movement on how we can attract grant dollars and talent,” Kalkanis said. “Seemingly overnight, we’re in an exponentially better position. Some people will focus on the bragging rights, but what it means is if there is a clinical trial being launched, we now have the bandwidth and recognition to participate. This allows us to elevate our game and attract more talent. There is huge competition to land the best and brightest in the country. Do you want to go to a place that is 70th in the country or one that has the resources of being in the top 30?” The next steps involve building out the executive ranks of the venture, Kalkanis said, including a head of research, dean of the campus branch and leader of the new institute. Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

REAL ESTATE

Eastland Center demolition, redevelopment takes next step BY KIRK PINHO

The Troy headquarters of Flagstar Bank. | FLAGSTAR HQ

Flagstar acquisition delayed, execs hopeful minority lending initiative moves needle BY NICK MANES

The CEO of the banking institution seeking to acquire Troy-based Flagstar Bancorp said he’s “cautiously optimistic” that a new community-focused lending initiative will get the deal across the finish line. The proposed $2.6 billion bank merger, announced in April, has been delayed for what bank executives say is added federal regulatory scrutiny since at least October. Tom Cangemi, chairman, president and CEO of buyer New York Community Bancorp Inc., said he and Sandro DiNello, the top executive at Flagstar, are hopeful that a recently announced $28 billion lending initiative to communities and people of color, low- and moderate-income families and communities as well as small businesses will move the needle with regulators. “This is a significant and far-reaching agreement that both (DiNello) and

I believe will provide greater economic opportunities for those communities, and erase the racial wealth gap across the broader footprint of our pending company,” Cangemi said Wednesday morning during a quarterly earnings call. “We are cautiously optimistic that this integral agreement will assist in paving the way to us receiving the remaining regulatory approvals necessary, causing the merger as early as practical in 2022.” Cangemi pushed back as analysts pushed for a timeline on the deal. “The timing is in the hands of the regulators,” Cangemi said. Should the deal come to fruition, the combined bank would have $85 billion in assets and nearly 400 branches. A spokesperson for the Federal Reserve, which approves bank mergers, declined to comment. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

The anticipated $94 million redevelopment of the Eastland Center shopping mall in Harper Woods has received $4.7 million in state brownfield financing. The Michigan Strategic Fund’s approval on Tuesday of the tax-increment financing reimbursement clears another hurdle for NorthPoint Development LLC, based in Riverside, Mo., to raze the struggling mall and turn it into more than 1 million square feet of industrial and warehouse space across three new buildings. In addition to the state funding, the project also has $12.7 million in local brownfield tax captures plus a Commercial Redevelopment Act property tax abatement valued at $12.2 million, according to an MSF memo. The capture would begin next year and last for 21 years, reimbursing NorthPoint for the anticipated $6.3 million in demolition costs, $2 million in lead and asbestos abatement, $1.6 million in infrastructure improvements and a little under $5.2 million in site preparation, among other things, according to the memo. A spokesperson for the Michigan Strategic Fund said some demolition began late last year and that the mall is currently vacant. An email was also sent to a local vice president for NorthPoint, which has been amassing a development pipeline of millions of square feet of new buildings

An undated aerial photo of the Eastland Center shopping mall, which is expected to be demolished to clear the way for more than 1 million square feet of new development. | COSTAR GROUP INC.

in Shelby Township, Detroit, Warren, Romulus. Under the plans, a 535,000-squarefoot building, a 295,000-square-foot building and a 207,000-square-foot building would replace the mall, which is at 18000 Vernier near I-94. A redevelopment would capitalize on the state of the industrial/warehouse market, which has been a bright spot the last several years in the region as tens of millions of new square feet have been built, including much of it speculatively, as older building stock has aged into obsolescence, tenant needs have changed and the region’s economy has improved over the last 5-10 years. As of the fourth quarter, according to a report from the local office of New York City-based brokerage house Newmark, there was 6.37 mil-

lion square feet of new industrial space under construction, with 5.78 million square feet of that being warehouse/distribution. The redevelopment would be the latest and last chapter in the mall’s history, which dates back to its development and opening in 1957 by J.L. Hudson. It was sold to Great Neck, N.Y.based Kohan Retail Investment Group and 4th Dimension Properties LLC, which paid just $3.125 million for 640,000 square feet of the mall in 2018 after it went into foreclosure in 2016. An affiliate of NorthPoint paid $10.5 million for the property, including an old Target Corp. store. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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NONPROFITS

REAL ESTATE

Survey of Michigan’s nonprofit leadership to assess diversity, needs BY SHERRI WELCH

“This is the kind of map that we want,” Detroit Mayor Mike Duggan said Tuesday of rising home values. “From one end of the city to another, we have seen property values grow.” | CITY OF DETROIT FLICKR

After big jump, Detroit home values back to levels not seen for a decade

City residential values rose 31 percent in 2021 to $4.83 billion

BY ARIELLE KASS

work today,” said Bernadette Atuahene, a professor at the Chicago-Kent Property values in Detroit were up College of Law at the Illinois Institute 31 percent on average, rising in all but of Technology. “The people of Detroit five neighborhoods, as they have deserve more.” If property values are truly higher, nearly returned to levels not seen in a she said, that’s “great news.” But Atuadecade. Residential values rose to an ex- hene said previous years’ data does pected $4.83 billion in 2021, nearly as not back the mayor’s claims. Duggan called accusations that high as their 2012 value of $4.85 billion. In announcing the jump in val- people continue to be overtaxed ues, Detroit Mayor Mike Duggan said “nonsense,” saying the gap between most people would only see a 3 per- what homes are now worth and what people are paying strongly favors cent increase in their property taxes. “It’s basically all good news,” he homeowners. Duggan touted the success, saying said, saying the increases were at a he ran for office on the promise that level Detroit had never seen before. This year marks the fifth straight every one of Detroit’s 208 neighboryear of value increases, Deputy Chief hoods had a future. “This is the kind of map that we Financial Officer and Assessor Alvin Horhn said Tuesday. He said resi- want,” he said. “From one end of the dents who were able to stay in Detroit city to another, we have seen property over the past decade, after the reces- values grow.” Still, he said, he never thought he’d sion battered them and values slowly be able to tell residents how much rose, had finally seen the recovery. “It is generational wealth being ac- they had soared. “This is the kind of city we’ve been quired by Detroiters,” Horhn said. Advocates continue to question trying to build,” Duggan said. In a statement, Duggan said resiwhether residents are being overdential values were in a tailTHOSE INCREASES INCLUDE 21 when he NEIGHBORHOODS THAT SAW VALUES RISE spin first took office in 2014, MORE THAN 50 PERCENT; 91 THAT HAD an estiINCREASES BETWEEN 30 AND 49 PERCENT; losing mated $3 bilAND 85 WITH INCREASES BETWEEN 10 AND lion in value since 2010. 29 PERCENT. The city cut residential astaxed on the values of their homes. In sessments in response to the drop in a virtual press conference following values. Since 2018, he said, residential valthe announcement, members of the Coalition for Property Tax Justice said ues have risen more than 60 percent. Those increases include 21 neighwhile they had not yet parsed the most recent numbers, they were con- borhoods that saw values rise more cerned that the highest-valued prop- than 50 percent; 91 that had inerties continued to be under-as- creases between 30 and 49 percent; sessed, while the lowest-valued and 85 with increases between 10 properties were over-assessed. A pre- and 29 percent. Six neighborhoods vious across-the-board cut in assess- had increases of less than 10 perments Duggan touted only served to cent. Of the five neighborhoods that lost value, none lost more than 6 exacerbate the issue, they said. “It’s just a whole lot of fancy foot- percent, according to city data.

Some of the large increases were seen in Morningside, where values were up 25 percent; Pulaski, where they were up 26 percent; Warrendale, where they rose 27 percent; Russell Woods, where they increased 36 percent; Grandmont, where they jumped 47 percent; and East English Village, where they rose 63 percent. The city sent out 399,087 assessment notices to property owners; the notices aren’t bills and residents will have the opportunity to appeal until Feb. 22 if they believe their values are incorrect. State law caps tax increases at the rate of inflation for existing homeowners, so only new homeowners should expect to see tax rates higher than 3 percent. “No one is being overtaxed,” Horhn said. Those who claim they are, Duggan said, are people with a political agenda who are spreading misinformation. Still, the city is continuing to consider ways to compensate residents who were overtaxed previously; many lost their homes to foreclosure after failing to pay their property taxes. Duggan said the city has an exemption program to help seniors and low-income residents avoid property taxes that they can’t afford. Melvin Chuney, president of the Russell Woods Sullivan Area Association, said at a press conference announcing the values that he was thankful for the turnaround. Chuney, who said he bought his home in 2013, said his own values had skyrocketed, though his taxes remain relatively steady. He called the return to previous levels a process, but said the city’s process is working. In 2020, the city saw an 8 percent increase in residential property growth; the year before that, it was 20 percent. Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

The Michigan Nonprofit Association is leading an effort to collect the demographics of nonprofit leaders in the state and information on the challenges they face. The effort, funded by a $350,000 grant from the C.S. Mott Foundation, will map Michigan nonprofits led by Black, Indigenous or people of color and the communities they serve, while also working to assess their needs. MNA is working to collect the information with Data Driven Detroit and the Dorothy A. Johnson Center for Philanthropy at Grand Valley State University, which said the effort is focusing on areas of the state with high densities of nonprofits. Results from the snonprofit leader census are to be released this summer, MNA President Kelley Kuhn said. The statewide data will build on The Detroit Nonprofit Leadership Census survey released in mid-December by MNA, in collaboration with Data Driven Detroit, Johnson Center and nonprofit support center Co.act Detroit. The Detroit survey, conducted in February, sought to identify the percentage of BIPOC leaders at nonprofits in the city and examine disparities among the city’s nonprofits. It was funded by a $50,000 grant from the John S. and James L. Knight Foundation and includes responses from more than 209 of Detroit’s roughly 2,000 nonprofits. “Detroit is a city that is predominately Black and it’s important to affirm where BIPOC leaders are having an impact in their communities,” Nel-

Wallace

Kuhn

lie Tsai, social innovation officer at MNA, said in a news release. “This survey allowed us to collect and analyze data in our fight to confront and dismantle systemic racism and build more equitable workplaces in Detroit.” Among other things, the survey found: `62.6 percent of BIPOC executive directors are the first leaders of color in their organizations. `4.9 percent of white-led organizations do not have BIPOC board members, and 1.6 percent of them have a 100 percent BIPOC board. `19.6 percent of surveyed white-led organizations did not have any BIPOC staff members. `141 out of 209, or 67.5 percent, of executive directors or the top executive in nonprofits are male. `BIPOC-led organizations generally have a higher percentage of BIPOC board and staff members. `White-led organizations tend to have a higher percentage of BIPOC members on their staff than on their boards. To participate in the new survey, go to bit.ly/MINonprofitLeadership. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

FINANCE

Renaissance VC plans UnDemo Day with diversity as focus BY NICK MANES

A Southeast Michigan venture capital fund plans an event in the spring focused on connecting out-of-state investment dollars to diverse founders in Michigan and the broader Midwest region. Executives at Ann Arbor-based Renaissance Venture Capital say they’re hosting an April 27 virtual event that they hope will put more than 300 national venture capitalists in contact with around 50 companies — all led by women, people of color and other diverse backgrounds — headquartered in Michigan and the broader Midwest. The proposed event is an offshoot of Renaissance Venture Capital’s annual UnDemo Day, aimed at connecting early-stage investment capital with startups seeking growth dollars. This event will be the first focused solely on promoting diverse companies, according to Chris Rizik, CEO and managing partner of Renaissance, which operates as a “fund of funds,” meaning it primarily invests in other VC funds as opposed to directly into companies. “We’ve done a number of things over the years, but this is our most ambitious,” said Rizik. “We’re taking the

(UnDemo Day) model and translating it over to a focus on women and people of color as founders or CEOs of companies throughout the Midwest. So it’s taking that temRizik plate we built and applying it differently here with a different goal, although analogous.” During the annual UnDemo Day events, typically upward of a dozen companies score investment from the attending VCs, according to Rizik. The opportunity to just get on the radar and network with the investors — even if there’s not an immediate capital injection — is also invaluable, he said. In addition to the opportunity of one-on-one meetings, which Rizik called the “secret sauce” of UnDemo Day, Renaissance Venture Capital and partner organization Invest Detroit Ventures will offer “coaching sessions” aimed at helping startups prepare their pitches to would-be investors. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes JANUARY 31, 2022 | CRAIN’S DETROIT BUSINESS | 7

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COMMENTARY

No-fault reforms pave way to savings, choice, accountability

Michigan Senate Republicans advanced a plan to cut income taxes, both personal and corporate, to 3.9 percent from 4.5 percent for individuals and 6 percent for corporations.

COMMENTARY

Piles of cash have tax-cut fever spreading in Lansing

ax-cut fever is once again sweeping across Lansing — and even the Democratic governor has a mild case of the

bug. Senate Republicans advanced a plan Wednesday to reduce taxes by nearly $2.4 billion by slashing the 6 percent corporate income tax and the 4.25 percent individual income tax to 3.9 percent, while giving families a $500 per child tax credit. Hours later, Gov. Gretchen Whitmer proposed eliminating the individual income tax on retirement income altogether and tripling the earned income tax credit for low-income working families — tax relief totaling $730 million when fully implemented. From exempting whole-house generators from property taxes to making sure furniture stores don’t apply the sales tax to delivery charges, there’s no shortage of other proALL OF THESE floating ELECTION-YEAR posals around the capital city to reduce the tax TAX-CUTTING in this period PROPOSALS ARE burden of rising inflation. One Republican PREDICATED ON lawmaker even wants A MULTIBILLION- to exempt diapers from the 6 percent DOLLAR TAX sales tax. SURPLUS PILING All of these electax-cutting UP OVER AT THE tion-year proposals are prediTREASURY cated on a multibillion-dollar tax surplus DEPARTMENT. piling up over at the Treasury Department. “This is the first opportunity where we have billions upon billions (of dollars) that the administration admits we have that we can (cut taxes) across all sectors and not targeted sectors,” said Sen. Jim Runestad, a White Lake Township Republican and chairman of the Senate Finance Committee,

Chad

LIVENGOOD

which sent the $2.4 billion tax cut plan to the Senate floor on Wednesday. It is true the state is flush with $5.3 billion in federal stimulus funds and a $2.9 billion surplus in the general fund. But the federal funds can’t be used to pay for a tax cut. And the discretionary state surplus is not the result of rampant growth in year-over-year state tax revenues. The “surplus” is far more nuanced than the politicians are advertising. For the next fiscal year, that $2.9 billion surplus is projected to grow to $3.6 billion, according to the nonpartisan Senate Fiscal Agency. But that’s assuming there’s no change in spending or reductions in revenue through tax cuts. Revenue growth for the state’s General Fund is projected to be modest, rising from $12.5 billion this fiscal year to $12.9 billion in fiscal 2023, according to the Senate Fiscal Agency. In other words, there’s a projected $442 million in additional tax revenue for the next fiscal year that’s not already accounted for in the budget.

eforms to Michigan’s broken and outdated auto insurance system are saving money for families. And the road to a more accountable, transparent and affordable auto insurance system is only Erin McDonough just beginning. In less than two years is the executive after implementation, director of the these reforms have saved Insurance Michiganders $1 billion Alliance of in Michigan Catastrophic Michigan. Claims Association reduced fees in 2020 and 2021, and this spring, Michigan families will get a $400-per-vehicle refund, amounting to another $3 billion in additional savings. Yet efforts to curtail these savings are already being peddled in Lansing. These savings come at a crucial time for Michigan families and businesses. Inflation is at the highest rate since 1982 and here in the Midwest, consumer prices rose 7.5 percent in the past year, more than the national rate. Michigan families and businesses deserve relief, and auto insurance reforms are delivering. At the same time, these reforms are encouraging more drivers to buy auto insurance, many for the first time. Since reforms took effect in July 2020, more than 155,000 motorists have bought auto insurance and 66,000 of them didn’t have any insurance for three years or more. Michigan’s auto insurance reforms are doing what they were supposed to do: Drive down prices and give consumers more choices for the kind of coverage that works best for them. Because of high demand from consumers, more companies have entered Michigan’s

See LIVENGOOD on Page 17

MORE ON WJR ` Crain’s Executive Editor Kelley Root and Managing Editor Michael Lee talk about the week’s stories every Monday morning at 6:15 a.m. Mondays on WJR 760 AM’s Paul W. Smith Show.

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.

auto insurance market: 37 new companies either recently began providing coverage for Michigan motorists or plan to do so soon. More competition among more companies will further drive down auto insurance costs. On top of refunds, Michigan consumers can also add to their savings by choosing different levels of medical coverage, or Personal Injury Protection. Even motorists who choose to keep unlimited, lifetime medical benefits are saving money on their auto insurance premiums, according to the Michigan Department of Insurance and Financial Services. Where auto insurance reforms put consumers first, they also hold medical providers accountable. For decades, medical providers significantly overcharged consumers for medical procedures to treat an individual involved in an auto accident. These unscrupulous providers charged as much as five times more for traffic-related injuries than they normally would for other comparable medical procedures. The opaque, bloated system became a feeding trough that only a few special interests had access to and, for decades, feasted from. Auto insurance reforms have put the brakes on this shady practice, ensuring that savings are passed on to consumers. The results are promising: Since Michigan’s reforms went into effect, premiums in the state have gone down, according to the past two State of Auto Insurance reports from The Zebra. Where Michigan once had the dubious distinction of being the most expensive state for auto insurance, that honor now belongs to Louisiana, The Zebra report shows. Michigan’s bipartisan reforms are saving money for consumers and holding special interests that benefited from the old system more accountable. Leaders and policymakers must resist efforts to turn back the clock and undo the advances we are making. We must allow these reforms to continue driving costs down, giving consumers more choices and keeping Michigan’s outdated auto no-fault law in our rear-view mirror.

DANIEL SAAD FOR CRAIN’S DETROIT BUSINESS

DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

BY ERIN MCDONOUGH

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.

8 | CRAIN’S DETROIT BUSINESS | JANUARY 31, 2022

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OTHER VOICES

GM gets its big bucks for EV plants. How much is enough? BY MICHAEL LAFAIVE

The Michigan Strategic Fund board approved a taxpayer-funded subsidy package to General Motors Tuesday worth as much as $824 million. EviMichael LaFaive dence shows that prois senior director subsidy grams are inefof fiscal policy for the Midland- fective job cretools. based Mackinac ation Center for Public Despite this, Lansing politicians Policy. continue to take money from all taxpayers and give it to a favored few. In this case the very profitable General Motors, a company that has been on many a government dole over the years. As 2021 drew to a close, lawmakers quickly passed a new corporate handout program and appropriated $1 billion to subsidize just a few large corporations. The program is known by the acronym “SOAR,” for Strategic Opportunity and Attraction Reserve” fund, and it appears GM will collect the bulk of the first appropriation. That should make everyone sore, and for several reasons. Corporate subsidy programs are expensive and ineffective — especially so when targeted to large firms, the apparent focus of this program. Michigan has hurled multiples of billions at large, for-profit firms over the years. In some cases the state has given multiple subsidies to the same companies, with little to show for it. It should be reasonable then to ask, “How much is enough?” The SOAR has been sold as a way to land “transformational” corporate projects, which suggests it will need to target large, multi-national conglomerates. The program was created in the wake of Michigan’s losing a large Ford Motor Co. project to Tennessee. The problem is, recent research by academics finds “starkly negative” employment impacts from subsidizing large firms. The authors of the

2019 Upjohn Institute study “Striking a Balance” acquired information on 2,400 incentive deals across 35 states (180 from Michigan) then compared it to jobs data in a commercially available database — known as the National Establishment Time Series — that tracks employment at establishments over time. They found that employment at subsidized establishments grew 3.7 percent slower than at similar companies that did not get subsidized. Small establishments performed much better, according to the authors. The Mackinac Center for Public Policy adopted this same approach

for its 2020 incentive study and examined 2,300 deals going back to 1983. We found either zero impact or net negative ones, such as from the Michigan Economic Growth Authority program. That program offered up to $125,000 per job per year in refundable tax credits, hardly a cost-effective figure. One of the corporations that received multiple MEGA deals was GM. General Motors received 10 such MEGA tax credit deals during the program’s life. In addition, the company received other state incentives including infrastructure support, job training subsidies, a state education tax abatement, a “renaissance zone,”

and local incentives, such as property tax abatements, mandated as part of state law. GM may still be able to collect on $2 billion in refundable tax credits from past deals alone. Local units have offered GM incentives independent of the state too. Indeed, GM’s Orion plant in Oakland County was just offered a local property tax abatement this month. General Motors has made nearly $60 billion in net income (profits) since it emerged from bankruptcy in 2009, and the state will soon finalize $800 million more to underwrite GM’s already big bottom line. The GM figures mentioned above are just a portion of past handouts

and to just one corporate titan. There are others. Indeed, the state is expected to pay out more than $500 million in targeted, refundable tax credits from legacy deals in 2022 alone. We don’t blame corporations for taking what is offered, but lawmakers shouldn’t be offering it in the first place. Instead of pumping more taxpayer cash to the largest companies in the state, lawmakers should focus on fixing the policy fundamentals. Provide tax cuts to all instead of a favored few, repair roads faster than they fall apart, address the state’s high utility costs and even just save for the next rainy day.

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Nominations closing soon for Notables in Corporate Counsel, EVs Crain’s Detroit Business is seeking outstanding business leaders for upcoming recognition in our Notables in Michigan series. The nomination deadline for Notables in Corporate Counsel is Friday, Feb. 4. We are looking for remarkable lawyers making a measurable impact on in-house and corporate counsel teams. Winners will be recognized in a special section in Crain’s on April 18. We are also seeking nominations for executive-level business leaders currently working in or supporting the EV industry. The deadline to nominate is Friday, Feb. 25. Winners will be featured in our May 16 issue. Visit crainsdetroit.com/nominate for more information, to submit a nomination and for a complete list of this year’s awards programs. Questions may be directed to special projects editor Amy Bragg: abragg@ crain.com.

REGISTER today at crainsdetroit.com/newsmakers-event High-profile sponsorships for this popular networking event are still available. To sponsor this event or learn more, contact Crain’s Events Director Samantha Flowers at samantha.flowers@crain.com.

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INNOVATION DISTRICTS: Bedrock CEO Kofi Bonner on how Detroit can build on its areas of success. PAGE 15 HIGH-TECH KNOWHOW: Randy Thelen on tech talent as the key to bringing in new jobs. PAGE 15

KNOWLEDGE ECONOMY

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‘LOSING THE WRONG WAR’ Why Ford’s Corktown project is more important than the next battery plant

Ford Motor Co. says its $740 million rehabilitation of Michigan Central Station in Detroit will be complete by June 2023. Ford plans to house 2,500 of its tech workers in the Corktown campus. | NIC ANTAYA, SPECIAL TO CRAIN’S

Ford Motor Co.’s recent bets on the future of the automotive industry it helped define say a lot about where Michigan policymakers should be placing their next economic bets. The automaker credited with putting the world on wheels is investing nearly $1 billion to transform Detroit’s oldest neighborhood into an auto tech hub for 5,000 highly paid workers aimed at attracting not just startups in the development of new mobility technologies, but other automakers. Lost in all of the hand-wringing by the state’s political class in recent months over Ford’s decision to invest $11 billion in EV and battery plants in Kentucky and Tennessee is the fact that Michigan got Corktown. And Corktown could be pivotal to the future of the Blue Oval. The train station-centered campus, slated to start opening this summer, is where Ford hopes to attract the best minds that can solve the

auto industry’s biggest conundrums — defeating range anxiety, modernizing an electric grid to charge millions of vehicles and programming cars to drive on their own. “If the train station doesn’t work, it doesn’t matter where Ford puts battery plants, because Ford’s toast,” said Lou Glazer, president and co-founder of Michigan Future Inc., an Ann Arbor think tank. “Somehow a light bulb has to go off that that stuff mat-

ters more than whether you get the next battery plant.” Glazer and others in the economic think tank arena have argued for years Chad Michigan LIVENGOOD that needs public policies focused on boosting college degree attainment rates as knowledge-based jobs crowd out production jobs rooted in a 20th century labor model. Despite the enormous potential Ford’s train station project has for both Detroit and Michigan, policymakers here are still chasing jobs assembling batteries instead of jobs inventing new technologies to make See FORD on Page 12

Knowledge-based job wages versus production jobs The average hourly wage of a knowledge-based job in Michigan pays more than double what the average production-based job pays. The average new production job at General Motors Co.’s expanded Orion Assembly Plant will pay nearly 30 percent below the median household income in Oakland County. All jobs in Michigan $25.67 Knowledge-based jobs in Michigan $47.63 Production jobs in Michigan $20.42 Median household income in Oakland County $38.31 New production jobs at General Motors’ Orion Assembly plant $27.00 SOURCES: U.S. BUREAU OF LABOR STATISTICS; MICHIGAN FUTURE INC.; U.S. CENSUS BUREAU; MICHIGAN ECONOMIC DEVELOPMENT CORP. | CRAIN’S DETROIT BUSINESS GRAPHIC

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COMMENTARY

Support innovation districts in Detroit L

ike many other states and cities, Michigan and Detroit have faced significant challenges in recent decades. The development of innovation districts is one investment that has helped cities such as Pittsburgh, St. Louis and Atlanta weather these challenges. Detroit is growing a network of innovation districts that offers the potential to supercharge a recovery that creates good-paying jobs for city residents and maximizes federal investments. Innovation districts concentrate universities and medical institutions, mature firms, startup companies and entrepreneurial support organizations in urban settings to amplify their economic and social impact. One Michigan example is the Grand Rapids Medical Mile anchored by Michigan State University, the Van Andel Institute, Spectrum Health, Grand Valley State University and Grand Rapids Community College. Innovation districts often aim to increase incomes and wealth for a broad swath of residents through supplier diversity, workforce and talent development and affordable homeownership. Like Grand Rapids, Detroit is well-positioned to harness its regional assets and attributes, which include: `A concentration of auto companies (and their R&D units and supplier networks). `A strong network of corporations and philanthropic organizations committed to the city’s success. `Proximity to schools in the University Research Corridor (an alliance of Michigan State, the

and received four federal University of Michigan and grants in 2021 to further Wayne State), one of the inclusive programming. A nation’s top academic new partnership between research clusters. the Henry Ford Health `Talent production of System and Michigan State Southeast Michigan’s University and the planned regional colleges and univerrenovation of the University sities with more than 57,000 of Michigan Rackham graduates with four-year and building adds additional advanced degrees, of which Britany Affolter-Caine is executive opportunities for connectivi43 percent are in science, director of Michigan’s University technology, engineering and Research Corridor and serves as a ty and growth. math (STEM) fields, `Corktown: Ford Motor Co. director on the Michigan Strategic including 9,283 in engineeris building an inclusive, Fund Board. Bruce Katz is the walkable 30-acre mobility ing and computer science. founding director of the Nowak Metro innovation district embed`Proximity to Canada and Finance Lab at Drexel University and the strong interdependence serves as an adviser to Bedrock Detroit. ded between two historic neighborhoods: Corktown of the economies of and Southwest Detroit. metropolitan Detroit and the Anchored by the iconic Michigan Central Toronto-Waterloo Corridor, the largest tech Station, informed by community members and cluster in North America outside of Silicon Valley. supported by a commitment of more than $750 Building on these assets, innovation districts million, Ford is creating an open platform where have emerged or are in development in Detroit, leaders and regional partners can collaborate to each unique in focus yet when interconnected develop people-focused solutions that address are potentially more impactful: `Midtown: Anchored by Wayne State University, local residents’ mobility challenges and can be scaled to impact the world. the Henry Ford Health System, Detroit Medical `Downtown: Dan Gilbert and Bedrock Detroit Center and the College for Creative Studies, this have spent years building Detroit’s downtown existing innovation district features WSU’s into an innovation district with a unique vibe Industry Innovation Center, Integrative Bioscigrounded in major financial institutions (Rocket ences Center and TechTown Detroit, one of 21 Michigan Smart Zones that has served more than Mortgage and Ally Financial), technology companies (Microsoft and LinkedIn), and 7,500 Detroit businesses since 2007, supported emerging startups. The startup scene is supporthundreds of Black-owned companies each year

ed by Detroit Venture Partners, a Gilbert-backed firm. Bedrock Detroit is extending the innovation hub to the former Wayne County jail site and beyond. Partnerships have been created with entities such as Bosch and Ford at the Detroit Smart Parking Lab; the World Economic Forum, which has made Detroit the global headquarters of its Centre for Urban Transformation; and the Apple Developer Academy, a partnership between MSU and Apple to provide coding, design, entrepreneurship and essential professional skills opportunities for adults. More partnerships with advanced and applied institutions, domestic and international, are in the mix. `The District Detroit: The Detroit Center for Innovation is a future world-class research, innovation and education center anchored by the University of Michigan that is planned for the District Detroit between Midtown and Downtown. The site also will feature a technology incubator and student and faculty housing. Partners in the center include the city of Detroit, Related Companies and Olympia Development of Michigan. Seeded by a $100 million donation by UM alumnus Stephen M. Ross, the center will provide Michigan businesses and communities with talented graduates and build on Detroit’s growing reputation for innovation. With federal investment dollars and a network of innovation centers listed above, Detroit is on its way to becoming a high-tech center supplying good-paying jobs to Detroiters of every background.

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Why increasing labor force participation is essential for Michigan’s economy We are facing massive challenges as a state and country, but the lack of jobs is not the main problem. Our population is aging, the labor force participation rate is low and has been trending downward for decades, and our education system has had a difficult time keeping up with the increasing demands of our global economy. Our biggest economic problem is that we do not have enough people to meet the demands of our economy, let alone maximize its potential. Regardless of party affiliation, most people running for office feature some sort of jobs agenda. More jobs; higher paying jobs; tech jobs. Our current and previous presidents both called out a need to bring back manufacturing jobs. But a more urgent matter is to encourage higher labor force participation rates while seeking to increase the population over the long-term. Some jobs attract people, but a capable, large workforce will always attract jobs. In the U.S. today, there are over 10 million open jobs. Employers everywhere are struggling to fill positions of all kinds, and Michigan is no exception. However, a desire for growth is a sign that there is room for more economic prosperity. Having more jobs

Brian Calley, President and CEO of Small Business Association of Michigan is good, but that growth won’t happen without more people to fill those jobs. While it is tempting to try to decide which jobs the government should try to attract, the economy is vast and demands change often. Programs developed in silos around specific, current needs are not likely to move as fast as the economy. We need a versatile and resilient workforce and we need to be thinking on scale. The bipartisan win on Reconnect (tuition-free community college for adults wishing to obtain an associate’s degree) is a prime example of how we need to be thinking.

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F ta R In the short-term, an increase in H2B visas available to meet needs in Michigan would go a long way in our tourism and hospitality sectors, along with a more direct pathway for international students educated in Michigan universities to stay. Immigration reform at the national level has been wrought with controversy, but the political system, as dysfunctional as it is, ought to be able to rally around these modest and impactful measures. Increasing Michigan’s labor force participation rates should be at the top of the agenda. States with the strongest economies have much higher labor force participation than Michigan, though the nation has seen a downward trend over the last 20 years. This will be challenging because the solutions are multifaceted based on many different segments of people sidelined today. It will require progress made on issues such as child

care, transportation, higher education, criminal justice reform, mental health, addiction, disabilities, and kids aging out of foster care to name a few. Success will come from sustained efforts on many fronts over the long term. Rather than focusing on attracting jobs and chasing people, our state would be well served with an all-hands-on-deck approach to reducing the number of people currently sidelined. There’s so much that divides our nation today; helping our economy to grow through increasing the number of people able to participate in the economy should be something we can all agree on.

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How Detroit can be a hub for talent attraction O capital necessary to fuel sustainable ver a year ago I moved from growth. Southeast Michigan broadly the Bay Area to take the helm has deep, competitive advantages in at Bedrock. Like many city next generation technologies that builders, I had long admired the undergird mobility, defense, clean work of Dan Gilbert and his efforts to energy, cybersecurity, fin tech, drive the regeneration and economic agricultural science and life science growth of downtown Detroit. sectors. After decades on the West Coast, I Metro Detroit now sits at the particularly liked the compelling vanguard of the fourth industrial pitch to home-grown and in-coming Kofi Bonner is revolution, designing and deploying entrepreneurs alike: “make an CEO of Bedrock such technologies as robotics, impact on a city while building your LLC, the artificial intelligence, advanced matecompany.” Detroit-based My time here has convinced me real estate rials, big data analytics and beyond, that Bedrock has a unique opportumanagement often as part of supply chains that firm of Rocket leverage our trading partnership with nity to grow an inclusive, globally Companies Canada. significant innovation district in the founder Dan The metropolitan area and region core of the city, in close partnership Gilbert’s family have formidable institutions, with other innovation nodes around of companies. exemplified by the network of the city and an incomparable advanced companies, health care network of public leaders, private institutions (like Henry Ford Health System) corporations, universities and philanthropies. and the University Research Corridor, the In the past decade, innovation districts have formal alliance of Michigan’s three largest emerged as the leading form of 21st century higher education institutions: Michigan State economy-shaping, a stark contrast to the University, the University of Michigan and isolated research parks of the 1970s and 1980s. Wayne State University. The concentration and co-location of The distinct research strengths of universiuniversities and medical institutions, mature firms, startup companies and entrepreneurial ties and corporations are amplified by Detroit’s support organizations in urban cores has demographic diversity, its relative affordability already driven the growth of quality jobs and and the strong loyalty of current and former innovative companies in dozens of cities residents. around the world. These advantages, historically stretched Needless to say, I am bullish on Detroit’s across the city, suburbs, Ann Arbor and East special abilities to continue to take advantage Lansing, are slowly becoming re-centered of this trend for several reasons: inside the city of Detroit, given recent deciFirst, Detroit has an abundance of assets sions by Ford Motor Co. in Corktown and the that are being revalued and fundamentally University of Michigan’s newly announced altered in the aftermath of the pandemic. Detroit campus. The region has the land, the talent, and the Second, for the past decade, Bedrock has

catalyzed an innovation district in the heart of Detroit’s historic downtown, anchored by Rocket Companies, other finance and technology companies, and hundreds of new and growing enterprises, all distributed throughout the Bedrock portfolio and linked by the extraordinary commitment to quality place-making. This has served as the first phase of a broader “business-led” downtown innovation district now under way, with this first phase driven more by corporate commitments and venture investments than by the traditional research to commercialization route in cities like Cambridge, Philadelphia, Pittsburgh and St. Louis. Indeed, this first innovation district phase has set a solid innovation platform that is already attracting new global and technology partnerships with enterprises like Bosch, Apple, the World Economic Forum, and others. Today Bedrock is extending our downtown innovation district to adjacent parcels beyond the former Wayne County jail site. This next phase of growth will place enhanced emphasis on attracting special units of higher education, advanced global research institutions and technology labs, and contain programming designed to build close relationships between cutting edge scientists, mature companies, startups and scale-ups. In addition, and using our community development expertise, our next phase will also be centered around inclusive workforce development initiatives and community building and regeneration. The next stage of Bedrock’s growth will focus on four simple outcomes: we want people who are born here to stay here, we want people who are educated here to live here, we want

businesses that are seeking to grow to grow here, and we want businesses looking for talent to locate here. I strongly believe that Detroit has the ability to attract innovative institutions and firms from around the world and spark an unprecedented collaboration — and bridging — across countries, sectors, cultures and communities. Our work to date and going forward share a common focus: the necessity to re-center — in the city of Detroit — an historically decentralized region, smartly locate advanced research institutions and industries and build a world-class innovation district that knits together several innovation nodes that, together, can grow jobs at scale and help repopulate the city. Elected officials, business, regional bodies and philanthropy must come together to forge partnerships and policies that enable land assemblage, tools and public financing mechanisms that advance and accelerate translational research and business growth. The unprecedented funding opportunities for bold, inclusive economic growth presented by the Federal government cannot be wasted. It is clear to me that a strong Detroit means a stronger Michigan. Together, we have the potential to drive an inclusive recovery that grows incomes and wealth for residents of the city using purposeful strategies around innovation, entrepreneurship, founder and supplier diversity, inclusive workforce development and affordable homeownership. The post-pandemic moment is an opportunity to dream big and, as importantly, execute with focus, discipline and equity. That is the aspiration and promise in the next phase of downtown Detroit’s revival.

For real future, tech talent is where it’s at R

is at another crossroads. We’re facing ecently, Michigan made the inflationary pressures, global supply bold move to secure the state’s chain disruptions, talent shortages, advanced manufacturing and the transformation of our state’s future with a new $1 billion incentive economic powerhouse: the automopool. At a time of unprecedented change, this move was necessary to tive industry. It is time to write our assure Michigan maintains and grows next chapter. its position as a global mobility leader Will we retain our young people by now and well into the future. At the creating the job opportunities they same time, this moment of change seek? Or will they continue flocking Randy Thelen is forces us to recognize the need for to the more prosperous, tech-centric president and further economic diversification. regions across the country such as CEO of The Now is the time to write our next Austin, Denver, Nashville and Salt Right Place, a chapter: creating a tech-focused Lake City to name a few. Grand Rapidsknowledge economy. There are lessons to be learned based economic In the early 1980s a group of Grand development from their success as we decide the Rapids business and civic leaders future of our economy. Prosperous organization. gathered to explore how best to turn communities are investing in around a struggling economy. placemaking projects geared toward Unemployment was hitting record highs. the interests of young people; businesses and Downtown had empty storefronts. Businesses educators (K-16) align around current and across the region were struggling. The future workforce needs; and by providing a community was at a crossroads, and during high quality of life with a robust pipeline of this moment of uncertainty and change, they talent, companies big and small flock to these decided to act. markets with less need for incentives. These leaders set forth on a path to re-enerCreating a strong tech sector in our state is an opportunity we cannot let pass us by. The gize the region. They worked to write the next benefit is that it’s both vertical and horizoneconomic chapter of the region by intentionaltal, standing on its own as an employment ly diversifying the manufacturing base and cluster while also serving every other economy at large, building upon the strengths economic sector by making those companies of the automotive supply and office furniture more innovative. And its future is bright. A sectors. It worked. There is now a thriving recent report from the U.S. Bureau of Labor health sciences corridor in the heart of Statistics indicated that technology sector downtown, and the region was recently tagged workers make up 7.7 percent of the overall in The Economist as “the most successful U.S. workforce. At $1.9 trillion, the tech intensive manufacturing city in America.” sector accounts for roughly 10 percent of the Today, our region, and Michigan as a whole,

Greater Grand Rapids is aiming to double its tech workforce from 5 percent to 10 percent of its economy in the next 10 years. | GETTY IMAGES

total U.S. economy, making it the third largest and fastest growing sector in the economy. Recently, The Right Place Inc., conducted a survey of area businesses to assess their technology-related needs and potential for future growth. The 100-plus companies participating in the survey expected to hire 3,500 new tech hires over the next 5 years, which collectively would be the largest economic development project in our region’s history. In pursuit of this opportunity, we have developed a comprehensive, collaborative approach to building a tech-focused economy. Much like we did in the mid-’80s, we assembled business, academic and community leaders to craft a strategy that will position Greater Grand Rapids as a leading technology

center in the Midwest. The metrics are clear: double our tech workforce from 5 percent to 10 percent of the total economy in the next 10 years. To do so requires a focused regional strategy supported by statewide policy and investment. Thankfully, we are not pursuing this alone. Across Michigan there are green shoots taking root, including Traverse City becoming one of the hot spots for remote tech worker relocations; Detroit attracting thousands of tech workers to the core of the city; Ann Arbor and Lansing leveraging their university muscle; as is the Upper Peninsula, particularly Houghton-Hancock and Marquette. We all stand to gain in creating a tech-focused knowledge economy. Let’s work together to write this next chapter in our state’s history. JANUARY 31, 2022 | CRAIN’S DETROIT BUSINESS | 15

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PEOPLE ON THE MOVE

Advertising Section To place your listing, visit crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

BUSINESS DEVELOPMENT

INSURANCE SERVICES

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Business Leaders for Michigan

Lockton Companies

Business Leaders for Michigan welcomes Lindsay Case Palsrok as Vice President of Public Policy. Case Palstrok brings a depth of experience in public policy development and advocacy, particularly regarding Michigan’s K-12 system. Prior to joining Business Leaders, she served as executive director of Launch Michigan and as senior director of government relations at Detroit Regional Chamber, advocating on behalf of southeast Michigan businesses.

Lockton Companies, the world’s largest privately held, independent insurance brokerage firm, has hired Agron Shkreli as Strategic Consultant in Birmingham. Shkreli will partner with clients to create comprehensive property and casualty plans. He brings more than 15 years of experience in sales management and business development, most recently as District Manager with ADP. Shkreli attended the College of Mount Saint Vincent in Bronx, NY. Outside of work, he spends time with his family.

Presbyterian Villages of Michigan

Paul Bridgewater’s leadership in aging services spans decades. As President/ CEO for Detroit Area Agency on Aging, he provided leadership to empower and assist older adults, people with disabilities and family caregivers in metro Detroit. His tenure of 38 years elevated the organization as a national leader on public policy and services. He holds a bachelor’s degree from Saginaw Valley State University and a master’s degree in public administration from Oakland University.

Kenneth L. Hollowell is being re-elected to a consecutive term on the PVM Board and is a board member for The Village of Bethany Manor. He is President/ General Manager/CEO for WGPR 107.5fmRadio. Previous positions include The City of Detroit and Teamsters Local Union #247. He also serves as Supreme President/CEO for F&AM Masons. He is a graduate of Detroit Public Schools and holds an associate degree in General Business Administration from Wayne Community College District.

Dr. Lynda Jeffries, a former PVM Board Chair, is a returning board member. She also serves on several other PVM Village Boards, including Brush Park Manor Paradise Valley, Woodbridge Manor and Thome Rivertown Neighborhood. Dr. Jeffries holds a PhD from Capella University in Education-Training & Performance Improvement and an MBA in Management from The University of Detroit Mercy. She is Senior Consultant with the Leadership Group, LLC. Ms. Jeffries held executive positions in telecommunications.

LAW

CND Law Group, PLLC

FINANCIAL SERVICES

CND Law Group, PLLC is pleased to announce that Marc C. Swoish, Esq. has joined the firm as a partner. Mr. Swoish brings 30 years of legal expertise to CND Law and will lead the firm’s corporate and real estate practices. Mr. Swoish has a B.A. from Michigan State University and a J.D. from Wayne State University Law School. He specializes in corporate law, mergers & acquisitions, retail leasing, and real estate development. CND Law is a full-service law firm with offices in Michigan and Arizona.

Stout Stout has appointed Kevin Kernen Leader of the Detroit office. He is a Managing Director and co-lead for the Real Estate practice within the Valuation Advisory group. His concentration is in commercial real estate valuation and advisory services. Kevin serves on the board of directors for Girl Scouts of Southeastern Michigan (GSSEM) and Forgotten Harvest. Kevin is also a leadership advisor for Stout’s Diversity, Equity, and Inclusion initiative.

NONPROFIT

Presbyterian Villages of Michigan Dr. Graddy-Dansby has served for Henry Ford Health System, since 1987 and recently for PACE Southeast Michigan as a physician and Chief Medical Officer. She has received numerous awards and is listed among The Best Physicians in America (Midwest). She holds degrees from the University of Michigan, Wayne State University, and Michigan State University. Recently retired, she has provided expertise for National PACE Assoc., the American Geriatric Assoc. and the Alzheimer’s Assoc.

LAW

Foley & Lardner LLP

Action Benefits Action Benefits has named Ruth Chaness, CPA, formerly Vice President, Finance and Administration, as Executive Vice President. Ruth’s promotion recognizes the broader organizational role she is taking on, as the company expands its operations. Action Benefits has a 34 year history of industry leading service in the small group, individuals under 65 and Medicare markets. As the largest small group health coverage producer in Michigan, Action Benefits works with over 2,000 agents across the state. 16 | CRAIN’S DETROIT BUSINESS | JANUARY 31, 2022

Daljit S. Doogal has been elected as the next Chairman and CEO of Foley & Lardner LLP. His term will begin later this spring. Doogal, a business lawyer in the firm’s Detroit office, is a member of Foley’s Management Committee and has previously held numerous leadership positions at the firm, including managing partner of the Detroit office and chair of the firm’s Business Law Department. He joined Foley in 2001, was elevated to partner in 2006, and is a member of the firm’s Manufacturing Sector.

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To place your listing, visit www.detroitbusiness.com/companymoves or contact Debora Stein at 917.226.5470 / dstein@crain.com HONORS & AWARDS

ASE 2021 HR Executives of the Year Troy, MI 248-353-4500 www.aseonline.org ASE is pleased to announce the honorees for its Michigan HR Executives of the Year for 2021: For-profit Organization/ Large Employer: Jenifer Zbiegien, Vice President Human Resources and Marketing, Aludyne, Inc.; For-profit Organization/Small Employer: Deanna Cain, Head of Human Resources, RPT Realty; Non-Profit Organization/Large Employer: Justin Walworth, Chief Human Resources Officer, Peckham, Inc.; Non-Profit Organization/ Small Employer: Chantale Stevenson, Director of Human Resources, Archdiocese of Detroit. Through a nomination process overseen by ASE, candidates are selected in four categories and recognized for their admirable work in HR. Tribute videos are viewable at https:// www.aseonline.org/Events/HRExecutive-of-the-Year.

MERGERS & ACQUISITIONS

Motivation Excellence Traverse City, MI 231-947-0882 www.motivationexcellence.com David Jobes, owner & CEO of Schaumburg, IL-based Motivation Excellence is excited to announce the purchase of Traverse City, MI-based VIKTOR Meetings & Incentives as of January 1, 2022. VIKTOR’s previous owner & President, Mark Bondy, will stay involved in the short term to collaborate on the merging of the two industry-leading companies. Motivation Excellence will rebrand the Traverse City location and keep the staff intact. Both teams are eager to work together to continue to Inspire Extraordinary Performance with their clients, employees and communities. Both companies have a long history of providing exceptional incentive travel, meetings, events, and reward & recognition programs to companies in a wide variety of business sectors.

LIVENGOOD

From Page 8

The current surplus in state coffers is mostly a result of lawmakers sitting on larger-than-expected revenue collections from 2020 and 2021 that economists have attributed to a robust economic recovery following the 2020 pandemic lockdowns and the federal government’s pandemic stimulus spending spree (think: multiple stimulus checks, enhanced unemployment benefits, increased child tax credits, forgiven PPP loans, etc...). For the state’s School Aid Fund for public education, the revenue growth outlook is less cheery. Two weeks ago, budget writers from both the administration and Republican-controlled Legislature projected School Aid Fund growth from $16.08 billion to $16.25 billion in the fiscal year beginning Oct. 1. The School Aid Fund has a $2.9 billion fund surplus as well. But doing anything that tinkers with tax revenue for K-12 education is seen as politically perilous. In her State of the State address Wednesday night, Whitmer vowed to propose a “bold investment” in mental health through the School Aid Fund and an overall education budget “that will mark the biggest state education funding increase in more than 20 years

EATON

From Page 1

That wasn’t necessarily the plan, thinking she was going to retire following nearly a decade at her previous job, after her unimaginable year of loss amid our collective unimaginable years of loss. “I decided I have too much left to do,” Eaton said.

The road to real estate Eaton immediately impressed Steve Morris three decades ago. Morris, a longtime tenant broker and University of Michigan lecturer, showed Eaton the ropes in commercial real estate, luring her away from her career selling PBX telephone systems after she worked in human resources. Brokerage seemed like a precise fit for Eaton, who Morris, now principal of Farmington Hills-based Axis Advisors LLC, described as having the right personality and skill set to succeed in the industry. “I tried to hire her and eventually I did,” said Morris, who at the time was one of the heads of the Morris and Berke Real Estate Group. “She was always one that didn’t sit back and wait for the phone to ring. Barb was always finding opportunities, and everybody found her to be very pleasant and very helpful in how she approached the business.” She was also a good student. “Steve drove up and down Big Beaver Road and taught me all the office buildings, taught me who owned them,” Eaton said, reflecting on the days when information like that wasn’t available in the palm of your hand. “He taught me how to read a lease, he taught me how to put a purchase and sale agreement together,” said Eaton, who prior to rejoining Colliers spent nearly a decade working on the office portfolio of Southfield-based developer and landlord Redico LLC. Yet the clients she began developing were more industrial than office and it was clear to her that the indus-

In her State of the State address Wednesday night, Gov. Gretchen Whitmer vowed to propose a “bold investment” in mental health through the School Aid Fund and an overall education budget “that will mark the biggest state education funding increase in more than 20 years — without raising taxes.”

— without raising taxes.” Michigan’s School Aid Fund is shielded from revenue losses through reductions in tax rates for individuals, corporations and pass-through businesses — limited liability corporations, S-corps and sole proprietorships — that use the individual income tax code. So for the purposes of this current debate over taxation, all eyes in Lansing are on the general fund surplus. Business groups such as the National Federation of Independent Busi-

ness, the Michigan Chamber of Commerce and the Small Business Association of Michigan are already lining up in favor of the Senate GOP’s across-the-board tax cut plan. These groups largely remained mum last month when the Whitmer administration convinced GOP lawmakers to cough up $1 billion in federal stimulus cash to fund a new economic development initiative aimed at luring big industrial projects to the state. The first big fish was secured last

try “wasn’t necessarily friendly to female industrial brokers,” Eaton said. “But I decided that a box was a box,” she said. “What you put in the box, whether it’s office space or a production facility, it’s the same and should be the same process.”

“We never made that trip,” she said. Eaton had planned the funeral for March 14 but switched it to March 13 to accommodate a close friend’s baby shower. The baby shower didn’t happen due to COVID.

‘A rogue business’

A son

According to CREW, shorthand for Commercial Real Estate Women, an organization that promotes women in the industry, approximately 35 percent of commercial real estate employees are women. Although the industry has improved slightly over the years, it remains overwhelmingly dominated by white men, whether in brokerage, development, architecture or finance. Women, people of color — wildly under-represented in the ranks, as they are in many industries. But Eaton was determined to make her career shift succeed. “It was kind of a rogue business back in the day,” Eaton said, noting that on-the-ground, first-hand intelligence was a key to success in her early years. “It was every man for himself.”

The hole is big. Eaton breaks during a conversation. “Jarrod made the best and deepest friends. People just,” she pauses, tears up. “Always grow attached to him.” Speaking in the present tense, as if he is still here, still around his partner, Maria, and the kids they loved. Jarrod was the quiet one. Soft-spoken. Introspective and reserved. J.P., Jarrod’s twin, is assertive. More aggressive. The two boys played off each other, J.P. said. They communicated a few times a day. “The biggest challenge has been... as a twin brother and best friend, coping with his loss and being there for my mother,” said J.P. Champine, who is also in commercial real estate as managing director in the Southfield office of brokerage firm Newmark. “He had the biggest heart of all of our children,” Eaton said of Jarrod, who died unexpectedly July 18, 2020.

A husband It was mid-February 2020. It wasn’t long before Michigan and the country were flipped upside down by the COVID-19 pandemic and Eaton’s husband, Gary, wasn’t feeling well. The pair had been set to travel to Sarasota to look at Florida retirement properties. Gary, a retired marketing executive who was an avid tennis player, reality TV buff and skilled dancer, wanted her to fly south without him, saying he would meet up with her when his ailment passed. “‘Something’s not right,’” she recalled her husband saying. “‘I need to go to the emergency room. Just go ahead and go and I’ll get there.’” She stayed. He died March 2, succumbing to septic shock following a kidney stone procedure.

A father Just about a week and a half later, on July 29, Eaton lost her father, Joseph Gares, a World War II veteran who was in the U.S. Marines in the Pacific theater. “A very loving man who cared more about his family than he cared about anything,” Eaton said. Gares, who whittled wooden toys for his grandchildren, served in Tarawa and Saipan before working in advertising and encouraging his daughters to go after whatever they wanted in life. His death was lonely, like so many others, as COVID-19 raged. “The sadness was that we couldn’t be around him when he passed

week when the Whitmer administration awarded General Motors Co. a $666.1 million cash grant from the new incentives fund for $6.5 billion in investment in electric vehicle and battery assembly plants in Oakland and Eaton counties. Business groups and Republican senators argue if there’s enough cash lying around in Lansing for one company, there ought to be enough to spread to the rest of them. “If we can afford to target this much on individual projects, going to 3.9 percent on the income tax rate is not that big of an ask,” SBAM CEO Brian Calley said. SBAM supports Whitmer’s proposal to restore the earned income tax credit (EITC) to 20 percent from 6 percent as a means of getting more people back in the workforce, Calley said. The EITC was reduced in 2011 when Calley was then-Gov. Rick Snyder’s lieutenant governor. “Our biggest problem at that time was not enough jobs,” Calley said. “Today, there’s not enough workers and the labor force participation rate is low.” The current budget surpluses, Calley said, “gives the state the breathing room to reset the table in the way that it competes.” “The idea of creating an environment for every citizen that is a little better than before is something that could

pay dividends in the future,” he said. But absent cuts in general fund programs — i.e. corrections, economic development, higher education, Medicaid, the Legislature’s own operating budget — the revenue projections that both Republican lawmakers and the Democratic governor have agreed to don’t show year-over-year surpluses topping the $2 billion-plus price tag of the Senate GOP tax cut plan. That gives some business interests pause as they’ve spent years lobbying lawmakers to invest more tax dollars in infrastructure, college degree attainment, job-training and other economic areas seen as key to getting Michigan into the oh-so-coveted “Top Ten State” stratosphere. “We would not automatically say that any tax relief is automatically a good thing. We want to do the analysis to say, ‘OK, what are we not investing in?’” said Sandy Baruah, CEO of the Detroit Regional Chamber. “We’re hearing from businesses every day that taxes aren’t necessarily the issue here in Michigan. But labor force participation is, training is, education is.” Tax cut-feverish lawmakers and the governor may be headed for another showdown over the state’s near- and long-term priorities with business groups stuck in the middle.

away,” Eaton said. “We knew that he was going to die without us. That was hard to face.”

said, reflecting on her decision to return to brokerage. When the weather warmed this past summer, she found herself in a golf league again, opening the backyard pool for the grandkids. But the weather cools down. Outdoor activities slow. The sky grays. “I need to think and I need to keep working,” Eaton said. “It’s healthy. For me, it’s also part of our process of staying strong.” Her work is important. Her faith is important. Her family is important. All these things help her get through immense loss. “Grieving is a process,” Eaton said. “Everyone does it a little bit differently. Everyone draws on their personal strength for what they need. My strength is knowing my kids are OK. If my kids are OK, I’m OK.”

Life after loss There is more work to do. Clients with leases to work on. A new job to succeed at. Paul Choukourian, executive managing director and market leader in the Southfield office of Colliers, said Eaton’s wealth of experience on both sides of the bargaining table make her an asset for his firm. “She is already working with some big companies and looking at corporate services and tenant advisory work,” he said. “Any good listings that come up, she has that experience — working with larger companies, working on national portfolios.” It’s a chance for Eaton to continue writing her story. “I still wanted to do deals,” she

Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

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to acquire blighted property for rehabilitation and sale working as a public agent for communities in Wayne County. We are negotiating for these services. Contact Director Will Miller at 313-971-8707 for information.

JANUARY 31, 2022 | CRAIN’S DETROIT BUSINESS | 17

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HOUSING

From Page 3

The blowback was swift. “He talks about ‘We’ve got a great plan to stop gentrification,’ and I don’t think anybody would say that,” said Peter Hammer, director of Wayne State University’s Damon J. Keith Center for Civil Rights. “And obviously, without greater details about what that great plan is ... it’s not a very persuasive statement.”

Preservation partnership What, exactly, is displacement? For Schneider and the city, it’s the permanent relocation of residents who are forced out of their homes. For some, it might be because the low-income unit they were living in aged out of requirements to provide affordable housing. For others, it could mean they don’t have money to repair their roof and their house becomes uninhabitable. The city’s preservation plan is focused largely on the former, with Schneider saying no affordable units in the city have been converted to market-rate since the plan’s implementation. So far, that’s 5,700 apartments that have been maintained as affordable housing. The city also has programs to help fund home repair and is planning to spend pandemic relief dollars to do so, as well as to offer down-payment assistance. The 2018 plan also called for the creation of a public-private Preservation Partnership Team, which seeks to identify units that are at risk of ceasing to be affordable so the city can intervene to keep them. The program, launched in 2020, so far includes 1,600 units over 28 properties. The team works with owners to help with financing options that could help pay for needed improvements or utilities assessments that might show where savings are possible, said Stacy Esbrook, the affordable housing program director at Enterprise Community Partners, which leads the Preservation Partnership Team. “It feels like we’re making a pretty sizable dent there,” said Rebecca Labov, director of strategic initiatives for Detroit’s Housing and Revitalization Department. “It’s always going to be an ongoing process.” The preservation plan calls for a pilot program to help preserve single-family rental housing and mentoring of property managers to help keep distressed units from being sold for market-rate rehabilitation. But advocates say the focus on preservation is too narrow to count as a plan that avoids displacement.

Bigger than housing “It’s just a slap in the face,” Nakia Wallace, co-founder of activist organization Detroit Will Breathe, said of the city’s efforts. “It’s extremely difficult to find housing in this city for under $1,000 (a month). It’s not affordable for anybody who needs it.” More than a third of Detroit’s residents are below the poverty line, according to recent Census data. The city’s poverty rate has improved by 9 percent since 2014, but it’s still nearly triple the state’s, which was 13 percent as of 2019. The city’s median annual household income is just less than $31,000 and the city became majority-renter around 2015. Census data show the median rent in the city is $824 a month, which includes the cost of utilities. Wallace and others said the focus

The Parker Durand development at the northern edge of Detroit’s east-side West Village neighborhood is being constructed with 92 apartments, 46 of which are designated as affordable based on federal rules. | CITY OF DETROIT VIA FLICKR

Watts

Detroit’s population has fallen over the last six decades, with displacement and exodus leaving behind tens of thousands of vacant homes. | CITY OF DETROIT FLICKR

on preserving rental units doesn’t take into account all the other ways that people can be forced out of their homes. As values continue to rise, property tax bills are capped at 3 percent increases for homeowners, but renters don’t have the same protection. They can see rents rise to make up for those increases or landlords’ other costs. They can have unaffordable water bills. They can be driven out by disproportionate policing in areas where wealthier residents are moving in or lose homes to foreclosure. Many of these difficulties disproportionately impact Black Detroiters, who also haven’t benefited as much from the city’s growing fortunes. Their incomes grew 8 percent on average from 2010 to 2019 compared with 60 percent for white residents, according to a recent Detroit Future City report on racial equity issues. Gentrification and displacement are much bigger than housing, said Brian Silverstein, an organizer with Detroit Will Breathe. He and Wallace questioned the city’s assertion that the existing plan is enough. They said government decisions to close schools or focus job investment in certain communities where there is limited public transportation and most residents don’t have cars are intentional choices that force people to leave. “It’s planned; neighborhoods are targeted; measures are put in place to

make sure displacement happens,” Wallace said.

Fixing the easiest problem Toyia Watts, an activist and president of the Charlevoix Village Association on Detroit’s lower east side, said she’s watched displacement sweep through over more than two decades and hasn’t seen a plan to fix it. As it is, she said, she hasn’t heard enough from city officials about her community’s needs. “We don’t have that dialogue with them, and they work for us. That’s what pisses me off. Do you hear us?” she said. For people who have been able to stay in their homes, the money isn’t always there to maintain them. A recent University of Michigan study found 38,000 Detroit residents have broken furnaces, no running water, exposed wires or other severe problems that keep their homes from being livable. The city earmarked $30 million in American Rescue Plan Act dollars for home repair. But with a wait list for assistance “as long as Seven Mile (Road),” the need is far greater than what the administration has allocated, said Allison Laskey, a volunteer with the Charlevoix neighborhood association and a researcher at Wayne State University. The extra funds will allow the city to pay for repairs at up to 750 homes a year, up

Hammer

from a maximum of 250 in previous years. In addition to issues with the extent of the need, there are persistent questions about what is legally affordable and what poor Detroiters can actually afford. Even units that are available for half of the area median income assume earnings that are nearly $10,000 more than the actual median household income in the city, which is $33,970. The area median income used to calculate affordablity in the region, though, is nearly twice that. Plenty of affordable units are made available at 60 percent or 80 percent of the region’s affordability standard, still out of reach for many Detroiters. “They don’t speak to affordability needs Detroiters have,” said Paul Jones III, a graduate student in the University of Michigan’s urban and regional planning program. “I don’t think the mayor is addressing displacement at all in a very real sense.” Instead, Jones said, he sees the administration fixing the easiest problem — keeping existing affordable units affordable. It’s in no way bad for the administration to work to preserve affordable housing, Wayne State’s Hammer said. “But if you look at the scale of what those do in comparison either to the need or these other forces (creating displacement), it’s woefully inadequate,” he said. For Hammer, two of the top contributors to displacement have been past water shutoffs and overtaxation. In January 2020, The Detroit News reported that city residents had been overtaxed by $600 million between 2010 and 2016 — an issue that was a huge contributor to the city’s foreclosure crisis.

‘Making some progress’ Schneider, Detroit’s housing director, said her department this year will

update the existing plans with more knowledge about what the city is able to do. The 2018 effort was a first goal, she said, and building on those successes in updating the existing plan will be a priority of the department. At the same time, she pushed back about criticism of the affordability requirements. The units are designed for people who earn up to a certain amount, she said, and many low-income residents have vouchers that can help cover the costs of housing. She also said a focus on keeping the housing the city already had was an appropriate first step. “It’s a really important thing for us,” Schneider said. “We haven’t done this before.” In addition to the preservation plan, Detroit has employed a host of programs outside its housing department that aim to tackle broader economic contributors to displacement. They range from the Detroit at Work employment search site that morphed into a larger job candidate matching service to the $50 million People Plan and the Community Health Corps. The corps identifies a small number of families in need and connects them directly with food, utility assistance, health and behavioral health help and other resources. At the nonprofit housing organization U SNAP BAC, Executive Director Linda Smith said all the preservation, rehabilitation and attention to new construction have made a difference. “Every day, I’m hearing about new units that are coming online,” she said. “I think they’re on their way.” To blame Duggan’s administration for a problem that’s been there “forever” isn’t fair to the mayor’s real efforts, Smith said. No, there’s not enough affordable housing in Detroit, she said. There’s a huge homeless population in the city. She’d like to see more updates on the city’s efforts. But on the whole? “They’re making some progress,” she said. “Is it enough? No. But it didn’t get this way overnight. We still have a long way to go.” Contact: afrank@crain.com; (313) 446-0416; @annalise_frank Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

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THE REEF

From Page 3

“We want to stay open as much as possible, but also with the increase in competition and especially, the real sad part about it is, Detroit is surrounded by all recreational cities ... it’s literally wrapping all of Detroit with recreational cities and it’s taking away all these users from Detroit ... because patients, they don’t necessarily need to renew their cards anymore if they have access to a recreational shop right where they live,” Hasan said. The Reef does have “loyal patients,” and it has ramped up deals and brought in more vendors to showcase products. But the Reef team isn’t sitting around waiting for change, either. It opened a second location in September in Muskegon Heights, where it’s able to sell recreational products. Sales have been growing steadily there, around 10 percent per month. The Reef is also morphing its business model from solely retail to vertical integration, which means it will grow, process and sell its own product. “... So we’re not reliant a lot on what’s going on out in the market, that we can supply our own stores if things happen where there’s inventory shortages,” Hasan said. “We just want to put ourselves in a place where we can supply our own stores.” The company started operating its new 27,000-square-foot cultivation facility Thursday in Warren in an effort that Hasan said cost “north of $2.5 million.” The Reef plans to grow its own unique strains for its product line, which won’t be out for months because it has to grow the flower first.

The Reef, a medical cannabis retailer in Detroit at 6640 E. Eight Mile Road, has seen declining sales as cities around Detroit open for recreational cannabis sales while Michigan’s biggest city has not. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

Hasan said the company hopes to sell 50 percent of its own products and 50 percent others’ in three to five years. The business has other stores it’s planning to open, but for the most part Hasan wouldn’t talk about them yet. One thing he did discuss was a change of direction for The Reef’s

Detroit expansion plans — though they’re on hold until recreational sales are legal in the city. In 2018, The Reef was in the process of getting a dispensary off the ground in a historic building in southwest Detroit. Plans, as detailed by The Detroit News at the time, showed a classy joint with book shelves, a winding staircase and a pi-

ano in a corner. The city denied the Reef’s zoning appeal and that plan was nixed, Hasan said. The new target is a spot by the planned Ralph C. Wilson Jr. Centennial Park on the city’s west riverfront that’s expected to break ground this year. “We are waiting to open that up,”

NEPAL

From Page 3

wife Betsy created a local arm of the charity and teamed up with the SAY Detroit Family Health Clinic to set up free gynecology, podiatry and other specialty clinics for homeless women, among other supports. But people aren’t accessing the health services available at the SAY Detroit clinic and other health clinics in the city, Keidan said. The majority of Detroit residents have health insurance. Only 8.7 percent lack insurance, but many still face barriers to accessing health care, according to a 2018 survey conducted by the University of Michigan’s Detroit Metro Area Communities Study. Among other findings, the survey of more than 1,200 Detroiters noted that while most are able to access the type of medical care sought, unmet demand for dental care is high. And the city’s African American residents and residents of a lower socio-economic status report lower levels of health than other residents and are significantly more likely to use emergency rooms as primary care. If you’re a single mom in Detroit, holding down two jobs and have a sick grandmother and kids at home, preventative care is not high on your list, Keidan said. “You’re just trying to get through day-to-day.” A local, trusted woman in each community, trained to provide health education and referrals to available health resources, will help convince more people in Detroit neighborhoods to seek medical treatment, mental health services and

Brilliant Detroit’s Fitzgerald house in Detroit. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

preventative care, he believes. He’s lined up a list of collaborators to help with the project. Brilliant Detroit was invited into the neighborhoods and already has residents’ trust, Keidan said. It will host listening sessions with local residents, Keidan, an interdisciplinary team of graduate students from Wayne State University and the Michigan Healthcare Professionals physicians group. The university has agreed to put the project on the 2022 curriculum for its medical, public health and social work graduate students, he said.

The WSU School of Medicine confirmed it will provide graduate students for the interdisciplinary team, but the WSU School of Social Work said it is still in talks with Detroit2Nepal. MHP has formal arrangements with WSU to mentor its medical students, and working with Detroit2Nepal and Brilliant Detroit to improve access to health care will be one of their activities, said Keidan, who is chief of surgery of the group, assistant professor at WSU Medical School and associate professor of surgery at the Oakland University

William Beaumont School of Medicine. The Detroit2Nepal model of having somebody within the community who is well-respected and has the ear and trust of residents was very effective in Nepal and could be in Detroit, Pontiac and other areas where it’s hard for people to access health care and think of preventative care, said MHP CFO Lynda Glasser. MHP is working with Keidan and WSU to create a curriculum for community health in the neighborhoods, she said. “If Richard needs mentors in this area, we have 450

Hasan said. “Just with the decline in sales in medical, you know, we don’t believe that we will be in a position to do enough sales to cover our overhead, and we do strongly believe that recreational will make that a hot destination spot.” Contact: afrank@crain.com; (313) 446-0416; @annalise_frank providers we can...approach with that. It’s a great thing we are getting involved in.” The interdisciplinary team will seek community feedback on needs and issues and use it to create a guidebook and training for the female neighborhood health workers to deliver health education and help residents access the available resources they need. “We want to go in and listen to the local community. If they can identify their priorities, then they will be apt to address (them),” Keidan said. Brilliant Detroit already has a foothold in 12 Detroit neighborhoods. The two nonprofits share a common approach, said Brilliant Detroit Co-founder and CEO Cindy Eggleton. Brilliant Detroit is focused on education, health and family support to help mitigate poverty in the neighborhoods. As part of that, it’s provided exercise and nutrition education and helped to connect residents to preventative resources. The two had been watching each other’s work for the past few years and recognized they could do more together, Eggleton said. “The best solutions come from those (who) are needing the solutions, not from somebody else,” she said. “We can do that at scale and in a way that fits our model. Trust is very central to the relationship.” The listening sessions will likely be in Cody-Rouge and two other neighborhoods under consideration, Eggleton said. “But we have to talk to the neighborhoods first.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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REAL ESTATE

Rochester schools accepting bids for historic building, land BY CRAIN'S DETROIT BUSINESS

Rochester Community Schools is looking for a buyer for a 4.43-acre parcel of land that includes a historical building dating back 133 years. A request for proposal was announced Jan. 18 for the property at 501 W. University Drive in Rochester and zoned residential. Farmington Hills-based Collins & Blaha PC is representing the district on the sale. The property includes an existing three-story structure, known as the RCS Administration Building, which contains a total of 89,716 square feet of gross building area. All proposals to purchase the site must be submitted in writing by 5 p.m. March 28 to be considered, according to the district. “We invite all qualified purchasers to consider submitting a proposal,” Superintendent Robert Shaner said in a statement. “We are particularly interested in learning about creative or unique proposals for alternative use or redevelopment that respect the heritage of the property.”

Rochester Community Schools is looking for a buyer for a 4.43-acre parcel of land that includes the RCS Administration Building. | ROCHESTER COMMUNITY SCHOOLS

The original building was erected in 1889 and updated and altered throughout the years to accommodate the needs of the growing community. Originally called Avon School District #5 Schoolhouse (or Rochester School), it was renamed the William S. Harrison School. Rochester High

School was built on the same site in 1916, according to the district. An addition in 1928 connected the Harrison School building to the high school. The expanded complex housed classrooms until approximately 1973. The building was then repurposed to accommodate administration offices.

RETAIL

The building was last renovated in 1988. In December 2018, the district was given a $25 million estimate for necessary updates to mechanical, electrical, architectural and plumbing systems. Last year, the decision was made to purchase an existing building for $7 million at 52585 Dequindre Road and move

the administration headquarters there in the summer. At 93,660 square feet, the Dequindre Road building built in 1995 will “accommodate district administrative offices and provide a permanent, secure location for the data center, headend room and technology operations,” according to the release. The district formed a community committee in May to study options for the future of the building and the artifacts within the structure. “When forming the committee, we were mindful of the need to have members represent a sample population of the greater Rochester community,” Lori Grein, executive director of strategic communications and community relations, said in the statement. “The committee is comprised of family members, business and city representatives, community members, local historical planners, alumni, and employees.” In addition to determining the process that a prospective buyer will have to go through to bid on the property, the committee is also focused on identifying artifacts for preservation.

NONPROFITS

DTE foundation to shift grants from COVID to education, workforce BY SHERRI WELCH

The Gucci store at Somerset Collection in Troy. | CRAIN’S DETROIT BUSINESS

Somerset expanding Gucci store for women, adding men’s store BY KIRK PINHO

Gucci is expanding its footprint in the Somerset Collection shopping mall in Troy. A spokesperson for the luxury retailer confirmed Monday that it is opening a new men’s store and its current store that, according to its website, sells things like handbags, jewelry, shoes and beauty products is expanding into women’s clothing. The expansion is taking place in mid summer through fall this year, the spokesperson said. “Thirty years ago, we welcomed Gucci to Somerset Collection, and the thriving demand for the brand lead to their desire to expand their footprint and merchandise offering,” Nathan Forbes, managing partner of Southfield-based Forbes Co., which owns Somerset Collection,

said in a statement. “Our significant portfolio of luxury retailers, and their success, serves as a testament to the strength of exceptional retail at Somerset Collection.” According to a Forbes Co. spokesperson, Louis Vuitton tripled its footprint in the mall last year and Hermès’ first Michigan store opened there last year, as well. Burberry Ltd. opened a second location in the mall for children’s clothing, Tiffany & Co. redesigned its store, Aritzia Inc. opened in a new location in the mall and Ralph Lauren returned before the holiday season. CoStar Group Inc., a Washington, D.C.-based real estate information service, says the existing Gucci location is 2,750 square feet. Details on the size of the expansion and contractors involved were not released.

The retailer also confirmed on Friday that it is opening a location in downtown Detroit this summer. Although the spokesperson did not identify the Detroit location or provide additional details, Detroit public records say the store is opening in the Dan Gilbert-owned building at 1274 Library St. across the street from the under-construction development on the former site of the J.L. Hudson’s department store. That site is also just a block south of a rotating Somerset Collection retail installation in the Element Detroit hotel in the Metropolitan Building at 33 John R. Gucci is headquartered in Italy and owned by fashion conglomerate Kering Group. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

After nearly two years of supporting COVID relief, DTE Energy Foundation is shifting its focus to recovery this year. The foundation, which makes roughly $20 million in grants annually to hundreds of nonprofits around the state, more than doubled that in 2020, adding another $23 million. The unprecedented jump in its grantmaking was needed to support seniors, students and small businesses during the pandemic, so DTE joined other funders in stepping up, said Lynette Dowler, president and chair of the DTE Energy Foundation and vice president of public affairs, DTE Energy Co. Its grantmaking dropped back to $18.9 million last year, but it continued to support recovery and stabilization in the community, she said. The first-quarter grants it awards in March will signal a shift. “With the hope the pandemic will start to move to the rear-view mirror, our focus (in 2022) is going to be on how do we help our students recover from the slide from an educational perspective...help employees to get back into jobs and help small businesses stabilize with our grants,” Dowler said. The foundation, which reported $141.5 million in total assets in 2020, will continue to also support arts and culture, fellowships for racially diverse populations in the environmental engineer field and environmental initiatives to groups like the Department of Natural Resources, the Nature Conservancy and the Community Foundation for Southeast Michigan for the developing Great Lakes Way system of greenways and waterways stretching from Port Huron south to Toledo.

Dowler

“Over the last two years, we’ve just had a huge loss in both education and employees,” Dowler said. “What can we do as a foundation to help in that space? Those are the kinds of grants

we’ll be looking for.” On the educational front, DTE will look to reverse the slide many students have experienced during the pandemic through support for afterschool programs and tutoring in reading and math to help kids catch back up to where they need to be, Dowler said. As part of that, DTE Energy Co. will look to step up its employee volunteerism to tutor K-12 students at all grade levels. “It’s more of what we’ve done in the past and a bigger commitment,” she said. To help get people back into jobs, the foundation is turning its support to workforce development nonprofits like Goodwill Industries and Focus: Hope and on the state’s west side, United Way Lakeshore, Dowler said. “We’ve always been a heavy player in workforce development, education and economic development,” she said. But the foundation’s grants will shift within those areas to a focus on reengaging students and people who’ve dropped out of the workforce. Those are areas other funders are also looking to support, Dowler said. “I think you could definitely keep your ears open for funders looking at workforce re-entry and students recovering from the slide.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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ENTREPRENEURSHIP

Motor City Match awards first grants since start of pandemic A total of $500,000 in cash grants awarded in Round 18 of program to help small businesses BY JAY DAVIS

Expansion is the name of the game for Round 18 of Motor City Match, and several of the 13 cash awardees plan to open their first brick-and-mortar location or move to a larger location. The winners, announced Wednesday during an event hosted by Detroit Mayor Mike Duggan and the Detroit Economic Growth Corp., received cash grants ranging from $25,000 to $60,000, for a total of $500,000. They were the first Motor City Match awardees recognized since February 2020, just ahead of the start of the coronavirus pandemic. “The first thing that comes to mind is how difficult it is to become an entrepreneur,” Detroit City Council President Mary Sheffield said during the event. “There’s a lot that comes with it. Everyone here should be commended for making it through. It’s not corporations that drive our economy. Small businesses do that. That’s important to me and the City Council. We do all we can do make sure the city supports you.” The Round 18 cash award winners are: ` Joyola Mei Hair, a salon with a focus on eco-luxury that will expand with a new location at 1432 Michigan Ave.: $25,000 ` Fork in Nigeria, a food truck, catering company and restaurant offering Nigerian cuisine at 4219 Woodward Ave.: $30,000 ` Mature, a premium menswear clothier at 3011 W. Grand Blvd.: $30,000 ` Detroit Dance Center, offering

Detroit Mayor Mike Duggan talks with Motor City Match award winners Wednesday. | CITY OF DETROIT FLICKR

ballet, tap, jazz and hip-hop dance training for ages 2 and up at 831 Selden St.: $35,000 ` Supreme Cafe, featuring all-natural, organic, gourmet food at 1811 Wyoming Ave.: $35,000 ` RAMP Detroit, a sports performance center at 4849 Canyon St.: $35,000 ` The Sandwich Lobby, a family-owned company offering a variety of soups, sandwiches and baked potatoes at 10630 Morang Ave.: $35,000 ` Dulce Café and Bakery, offering gourmet sandwiches, custom salads, cakes and pastries at 17233 Mack Ave.: $40,000 ` Welcome Home Yoga & Wellness,

a yoga, meditation and community gathering space at 6375 W. Seven Mile Road: $40,000 ` Hooked on Books Child Care, a group in-home care service for children from 6 weeks to 8 years old at 24532 W. McNichols Road: $40,000 ` Lily’s & Elise, a tea cafe specializing in small bites, pastries and craft cocktails at 19037 Livernois Ave.: $45,000 ` Breadless, a sandwich shop for people who don’t eat bread at 2761 E. Jefferson Ave.: $50,000 ` Detroit Soul, a restaurant and catering service offering a healthier approach to soul food at 14300 E. Jefferson Ave.: $60,000

NONPROFITS

Launched in 2015, Motor City Match has awarded cash grants totaling $8.6 million. The program has helped facilitate the opening of 130 businesses, with 87 percent of those being minority-owned, 79 percent owned by women and 81 percent owned by Detroit residents. Prej Iroegbu, the owner of the Fork in Nigeria food trucks who plans to establish his first brickand-mortar restaurant in Midtown, was emotional after getting the call that he’d received a $30,000 Motor City Match grant. “I don’t know if I should cry, smile or laugh. I’ve never won anything in my life,” said Iroegbu, who owns three food trucks, including a

Michigan Medicine has received a $10 million gift from the Weil Family Foundation to support research and innovation in critical care. In recognition of the gift, Michigan Medicine said it will rename its critical care institute the Max Harry Weil Institute for Critical Care Research and Innovation at the University of Michigan. Formerly known as the Michigan Center for Integrative Critical Care Research, the institute was founded in 2013 as a central hub for research and technology development across basic, clinical, information and engineering sciences. The late Dr. Max Harry Weil was regarded by many as the father of critical care medicine. He spent most of his professional career at the University of Southern California, in Los Angeles, where he was on the faculty from 1958 to 1981, according to a Washington Post story reporting his death in 2011 at the age of 84. Weil was the first physician to

Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981

MERGERS & ACQUISITIONS

Weil foundation makes $10 million gift to Michigan Medicine BY SHERRI WELCH

truck that operates in Columbus, Ohio. “We started Fork in Nigeria right in the middle of the pandemic. We took a leap of faith and moved (the truck) to The Avenue of Fashion. I remember delivering food to people’s cars. It’s a dream come true to bring some authentic Nigerian, African food to the Midtown area. I’m excited for people to experience the culture.” Other Round 18 Motor City Match awardees received technical support with design, development or planning. In total, 63 small business owners received awards, including the 13 cash winners. Round 19 applications are open through Jan. 31. Applications are available quarterly. Duggan plans to seek approval from the Detroit City Council to use American Rescue Plan Act funds to increase grant funding available in each round of the Motor City Match program, according to a news release. If approved, the additional funds will be awarded through the program’s next round, based on existing interest and number of eligible applications, Duggan said. “No program in the country has the impact that Motor City Match does in creating a new generation of entrepreneurs, and the demand is only growing,” the mayor said in a statement. “During the nearly 70 community meetings we had on how to spend our share of ARPA funds, supporting small businesses in Detroit was something we heard from a lot of people, and so we included it in our plan.”

suggest grouping critically ill patients in a focused area for 24-hour observation, an approach that evolved into the intensive care units at hospiWeil tals today. He also invented the first bedside shock cart, an early version of the modern crash cart and had 20 patented inventions during his career. He was a founding member and the first president of the Society of Critical Care Medicine. There is nothing more fitting than bringing Weil’s love for for medicine and helping people back to his alma mater and a center that combines basic research and innovative ideas, Susan Weil, his elder daughter and a board member of the Weil Family Foundation, said in the Michigan Medicine release. “Michigan has proven to us they can have an impact on science and products that will save lives right away, especially during this pan-

demic,” she said. The gift provides the operational funding needed to develop new programming, enhance existing ventures and identify new partnerships that will create and sustain additional technological and entrepreneurial adventures, Kevin Ward, executive director of the Weil Institute and professor of emergency medicine and biomedical engineering at Michigan Medicine, said in the release. “In addition to supporting all of our endeavors, this gift will allow us to educate the next generation of clinicians and scientists in critical care science, as we get projects over the finish line to the patient bedside,” he said. Additionally, the reputation of the Weil name will help Michigan Medicine to forge national and international collaborations with experts in the field and other like-minded donors with an interest in supporting critical care research, Ward said. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

UHY is headquartered in Farmington Hills. | COSTAR GROUP INC.

CPA firm UHY expands to Maryland, Iowa BY NICK MANES

Accounting firms continue using acquisitions as a means to grow and expand to new markets. The Farmington Hills-based UHY LLP certified public accounting firm earlier this week announced it had acquired two organizations, LWBJ in Des Moines and Ames, Iowa, and TGM Group LLC in Columbia, Md., according to a news release. Taken together, the acquisitions — terms of which were not disclosed — add about 100 people to UHY’s headcount, including 15 new partners, according to the news release. The firm has a total of 25 offices and in 2020 reported about $189.2 million in revenue and just more than 1,000 employees, according to Crain’s data. “UHY’s strategic plan includes con-

tinued expansion within our existing markets as well as targeted new markets throughout the country,” Steve McCarty, CEO of UHY U.S., said in the release. “UHY’s people first culture is well received by firms similarly focused on providing a better experience for their colleagues. Another important benefit of joining UHY is the ability to partner with like-minded professionals focused on providing deeper services that dynamic middle market businesses need in these demanding times.” Earlier this month, Troy firm Doeren Mayhew & Co. PC expanded to the West Michigan market with the acquisition of Beene Garter LLP in Grand Rapids, as Crain’s reported. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

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THE CONVERSATION

Susan Harvey on why automakers no longer dominate industrial spaces Susan Harvey, senior vice president of Ashley Capital, isn’t quite ready to retire. Despite the challenges the pandemic has created for the industrial developer, Harvey said tenants are leasing space as soon as the company can deliver it. She expects business to be that good for the next two years, at least. And the challenges of the job still make it fun for her. Here, Harvey talks about how ecommerce has affected development, how she works with neighbors and what the future of industrial development might hold. | BY ARIELLE KASS ` How has the COVID-19 pandemic affected the pace of development, and how has the increased use of ecommerce affected business? COVID-19 has affected all of us. In my own office, it’s almost like having rolling blackouts — we’ll be fully staffed and then we’re back to remote work. … Our contractors are finding that they are very much impacted in COVID for the same reasons — they have worker shortages due to everything from the Great Resignation, just fewer people in the workforce, and then those that are in the workforce have been intermittently impacted by COVID. … Your second question was how ecommerce is impacting the industry; it certainly is in a big way. Amazon is the behemoth we all know about, but it’s not just Amazon. In the Detroit market and in our own portfolio, we’re seeing a movement away from the overwhelming dominance of just direct auto-related tenants. So I would say maybe 10 years ago, our portfolio … was probably solidly 80 percent direct automotive tenants, related tenants. Now, with Amazon and FedEx and a number of other more ecommerce related tenants taking up space, we’re probably now down to the automotive direct representation in the portfolio being closer to 65 or 70 percent of the portfolio, which is a big shift. ` What sort of users are we looking at these days in addition to Amazon? Who’s coming in to the market? Amazon is impacting the bulk warehouse market in the obvious way, which is they’re driving a lot of development and taking up a lot of space, creating a lot of jobs. But another way they’re impacting development for everybody pretty much throughout the country is, our general contractor told me that they have slotted or purchased something like 30 percent of the available steel capacity for the

food to the doorsteps of the people that are subscribers to these companies. TJ Maxx is in the market, Wayfair, Ashley Furniture.

if we don’t have happy communities, it’s going to be a problem for us for a long time. … Some communities say no and just won’t allow these kinds of buildings. Not everybody does. If a rezoning is required to do it, these kinds of facilities are being turned down very often, it’s not uncommon. Where they are allowed, you might have to have greater setbacks from the road. There’s a lot of consideration given to traffic patterns and exits. How do you get into and out of the site? Making sure these delivery vehicles don’t go through the neighborhoods. To be honest, we had a situation in Hazel Park, they were very welcoming to our facility, but pretty much right after Amazon took occupancy in part of one of the buildings, we discovered we had a problem because the fastest way to get to the closest gas station was to drive right through a residential neighborhood. And the homeowners there were rightfully really upset about it, and it was a tough problem to fix. But we got Amazon involved, they were good about it. The city got involved, we asked for the police to help. And the problem has been solved. But it really took a lot of effort to make it work and to keep everybody happy and safe in that situation.

` Neighbors aren’t always excited about having warehouse and industrial space close by, even though they want their meals to come quickly and their furniture to come quickly. How do you deal with that pushback? Fortunately, most of that is addressed up front in the zoning process and in the site plan approval process. And the communities where we are developing and have developed, we care a great deal about having happy neighbors. We are a developer that doesn’t really sell much; so we buy and build and hang on to it for a long time, which means

` You’ve told Crain’s previously that problem solving and the ability to improve people’s lives are what led you to stay in real estate. Is that still what’s keeping you there? Do you have the opportunity to improve people’s lives through your work? I do. I get asked at my age now, when are you going to retire, are you even thinking about retiring? Of course I think about it. But I still really enjoy the day-to-day work that I have with my coworkers, working on new projects, working in communities. It’s been a great career and I really think it continues to be for me.

Susan Harvey is senior vice president at Ashley Capital

United States steel industry, which is driving up costs considerably. … But back to your other question… It kind of goes to what I said earlier, which is we are seeing ecommerce and not automotive users fill up buildings, which is great. It starts to look like we actually do have a more diversified economy, which we’ve all talked about for years, but it’s starting to feel like we’re moving in that direction. So FedEx is a big user, we just did a very large lease with them for ecommerce, obviously; DHL has leased space; we have a new tenant — all of these food companies that send you a little kit with all your food and you can prepare your dinner with everything you need, that’s become such a big business. We have an ecommerce transportation company that leased from us just to get all that

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CLASSIC $169/yr. (Can/Mex: $210, International: $340), ENHANCED $399/yr. (Can/Mex: $499, International: $799), PREMIER $1,299/yr. (Can/Mex/International: $1,299). To become a member visit www.crainsdetroit.com/ membership or call (877) 824-9374 Group and Corporate Membership Sales Deb Harper, (313) 446-1623 or dharper@crain.com ADVERTISING/MARKETING

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RUMBLINGS

JoJo’s Shake Bar to bring specialty ice cream drinks to Detroit A CHICAGO-BASED RESTAURANT business is looking to shake things up in Detroit. JoJo’s Shake Bar will expand to Michigan in a space in The District Detroit, according to Construction Journal, a website that tracks construction project bidding and progress. The 4,600-square-foot restaurant and bar is planned for 88 W. Columbia St., in the same block as the Fox Theatre and near other food and entertainment businesses. It would have room for 150 guests. Plans for permits and construction were submitted to the city on Dec. 22. Chicago-based D+K will handle architectural work, according to the Construction Journal documents. Plans call for a main bar and pastry bar. A graphic wall would feature the

JoJo’s Shake Bar is planned for a spot on Columbia Street within The District Detroit boundaries. | D+K

city’s skyline while booths would include drawings of Detroit legends such as Barry Sanders. Requests for comment from JoJo’s Shake Bar and the Ilitch family’s Olympia Development of Michigan,

an affiliate of which owns the Detroit Life Building where JoJo’s would be located, were not returned. JoJo’s Shake Bar specializes in elaborate milk shakes and cocktails. Some are holiday themed, like the

Love Shake, made up of a red velvet raspberry shake, sugar cookie, cheesecake, raspberry drizzle, chocolate strawberry and chocolate pretzel. The $14 Rocky IV comprises a banana Reese’s Pieces shake, toffee marshmallow, a white chocolate boxing glove and a peanut butter cookie. Basic shakes, hot chocolate and floats are available as well. The rest of the menu includes snacks like chicken wings and JoJo’s fries — a concoction featuring shredded mozzarella, provolone and cheddar cheese, bacon, chives and sour cream. Sandwiches include a loaded grilled cheese, smash burger and honey fried chicken sandwiches. Vegan options include a Nada Burger made with a Beyond patty.

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Chairman Keith E. Crain Vice Chairman Mary Kay Crain CEO KC Crain Senior Executive Vice President 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 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except no issues on 1/3/22, 7/4/22, 11/21/22 nor 12/26/22, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2022 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

22 | CRAIN’S DETROIT BUSINESS | JANUARY 31, 2022

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THE INSIDE STORY

FROM THE DEALMAKERS THEMSELVES

MARCH 3 | 1-2PM FREE WEBCAST Join us as we dive into the biggest deals of 2021 with those who made them happen, forecast the deal-making outlook for 2022 and much more. This virtual event is a follow-up to the annual Biggest Deals report in the Feb. 21 issue.

SPEAKERS ANNOUNCED SOON!

REGISTER at crainsdetroit.com/biggest-deals today! INTERESTED IN SPONSORING THIS EVENT? A speaking opportunity and branding on event and promotional materials are available, depending on investment level. To learn more about sponsorship opportunities, contact Crain’s Events Director Samantha Flowers at samantha.flowers@crain.com.

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