Crain's Detroit Business, April 22, 2024

Suppliers push back on Stellantis, cause shutdowns

By Kurt Nagl

Stellantis NV has faced plant shutdowns and delayed vehicle deliveries in recent weeks due to suppliers refusing to ship parts in protest over costs — and more shutdowns could be coming.

e maker of Jeep, Chrysler, Dodge and Ram brands has taken a hard line toward parts makers seeking in ationary cost relief, rolling out a “no more claims” policy earlier this year, Crain’s has learned. But some suppliers are biting back.

At least three large tier-one suppliers stopped shipping parts to the automaker in the past few weeks because of pricing disputes, according to lawsuits in Oakland County Circuit Court led by FCA, the former name of Stellantis, whose North American headquarters is in Auburn Hills.

Stellantis said in a court ling that a supplier’s refusal to ship parts could cause shutdowns at its plants

In one case, a judge ordered a supplier of fasteners to resume shipment in late February after its refusal forced the shutdown of Toledo Assembly Complex, where the Jeep Gladiator, Wrangler and Wrangler 4xe are built.

Belle Isle Conservancy names new CEO

can Rescue Plan Act funds.

e Belle Isle Conservancy has named city of Detroit executive Meagan Elliott as its new president and CEO.

Elliott, deputy chiefnancial o cer for the city, will join the conservancy on July 1.

She will succeed Maud Lyon, who was named interim executive director in October when founding President and CEO Michele Hodges left to lead Habitat for Humanity of Oakland County.

Elliott has held key roles with the city for more than a decade. In her current role since 2021, she oversees development/fundraising for the city, including private grants and public dollars. Prior to that, she was chief parks planner for Detroit.

Among other e orts, she has led the Joe Louis Greenway Framework Plan, served as the city lead on the $350 million Uni ed Greenway campaign for the Joe Louis Greenway and the Detroit Riverfront Conservancy and has overseen the disbursement of Ameri-

“ rough academic study and on-the-ground experience, Meagan Elliott deeply understands the vital importance of Belle Isle as a park for Detroit families,” Belle Isle Conservancy Chair Nancy Vella said. “Meagan also appreciates the role of Belle Isle on a national and international stage, as one of the nation’s premier parks along our border with Canada. We could not be more pleased to bring her on board as the Belle Isle Conservancy’s next leader.”

Elliott, 38, has a doctorate in sociology, a master’s degree in urban and regional planning from the University of Michigan and a bachelor’s in sociology and Latin American Studies from Southwestern University in Texas.

Operating on an annual budget of about $2 million, the Belle Isle Conservancy helps attract volunteers and raise funds to preserve, restore and enhance the natural environment and historic structures on the island. It also runs the Belle Isle Aquarium.

Hatch semi nalists: A vegan baker, a roller rink and more

Jay Davis

A vegan dessert maker, a roller rink and a barbershop are among the 10 semi nalists for the 2024 Comerica Hatch Detroit pitch contest.

e winner gets $100,000 in startup funds from Comerica Bank, along with a package of accounting, legal, IT and public relations assistance from Hatch Detroit and its partners. e winner also will open a brick-and-mortar location in Detroit, Hamtramck or Highland Park.

Public voting to trim the field to four opened online at noon April 12 and ran through noon April 18. Votes could be made once a day at the Hatch Detroit website. The finalists of the 2024 Comerica Hatch Detroit Contest will be announced on April 22. e nal round of public voting begins at noon May 1 and runs through the completion of the Hatch O pitch competition, set for 6 p.m. May 9 at the Wayne State University Industry Innovation Center at 461 Burroughs St. e nalists will pitch their business ideas to a panel of judges and an audience.

e winner will be chosen from a combination of the public vote and judges’ determination.

Below is a look at all the seminalists.

w Amarra Products: a certi ed woman- and minority-owned Detroitbased business specializing in natural, organic body scrubs.

w Estella’s Vegan Dessert Boutique: vegan Detroit bakery o ering a made-from-scratch menu that includes cookies, pies, and cobblers.

w Harry Rich Clothier: creates custom garments for customers using fashion as a tool to inspire, liberate and educate people to think beyond the status quo.

w Khana: a Pakistani-inspired food pop-up based in Detroit.

w Nada Dry Bar: a woman-founded community bar o ering nonalcoholic beverages and light fare.

w Natural Living by Design II: a certi ed minority, female and family-owned business dedicated to delivering holistic solutions for the cultivation of optimal health and wellness.

w Pique Earth: a woman-owned food manufacturing company with a mission to develop chemical-free, 100% organic, locally grown products for the well-being of Earth, ecosystems and humanity.

w Roller Skate Detroit: Adults-only roller rink aiming to provide the metro Detroit area with an enter-

tainment facility focused on healthy fun.

w e Gentleman’s Oasis: a sanctuary devoted to the physical and mental wellness of men.

w Unity Community Barbershop: an inclusive barbershop that cultivates a sense of safety and belonging for members of the transgender and LGBTQIA+ communities.

TechTown Detroit Chief Program O cer Christianne Malone in a statement said the competition shows that community support is the cornerstone of success for budding entrepreneurs. TechTown Detroit is a sponsor of the program.

“Part of what makes Detroit’s small business landscape so incredibly special is the community’s shared vision for vibrant neighborhoods and unwavering dedication to see local businesses

thrive,” said Malone, who also works as assistant vice president for economic development at Wayne State University. “ rough initiatives like the Comerica Hatch Detroit Contest by TechTown, we witness the power of public engagement in shaping the city’s small business ecosystem.”

e contest has played a role in the launch of many noteworthy Detroit businesses, including La Feria restaurant in Midtown (2012), Sister Pie bakery in West Village (2014), Meta Physica Massage in Corktown (2016), Baobab Fare in New Center (2017) and 27th Letter Books in downtown Detroit (2019). Event business Bouncing Around the Motor City took home the grand prize last year.

With this year’s investment, Comerica Bank and the Comerica

Charitable Foundation will have committed more than $1.1 million to Hatch Detroit since the partnership began in 2012. is is the fourth Hatch contest with the $100,000 cash grand prize, up from $50,000 the rst seven years of the competition.

Comerica Bank Michigan Director of Small Business Meghan Storey in a statement said the bank takes pride in aiding an initiative that helps push forward the dreams of local entrepreneurs.

“We believe in the power of entrepreneurship to drive positive change, fuel economic growth, and create opportunity,” Storey said.

Hatch Detroit supports existing and new retail initiatives in Detroit, Highland Park and Hamtramck. Hatch Detroit was founded in 2011 to give residents and aspiring entrepreneurs an opportunity to have a voice in neighborhood retail development and joined TechTown in 2022.

Hatch Detroit provides funding, exposure and mentoring in support of its alumni entrepreneurs. With support from Hatch Detroit, 50 alumni have opened businesses. ey employ more than 500 employees and have invested over $10 million in economic development.

TechTown is a nonpro t business service organization that provides programs, education and resources for early- to growthstage small businesses and tech entrepreneurs. Since 2007, TechTown has supported 6,000 companies, which created 2,340 jobs and raised more than $408 million in startup and growth capital.

Sherri Welch Belle Isle Conservancy’s 2023 Polish the Jewel event was a strolling dinner at the Belle Isle Aquarium. | BELLE ISLE CONSERVANCY

Meagan Elliott

Adults-only, Ferndale-based roller rink Roller Skate Detroit has been named one of 10 semi nalists in the 2024 Comerica Hatch Detroit pitch contest. ROLLER SKATE DETROIT

Estella’s Vegan Dessert Boutique, a minority- and woman-owned vegan bakery, was also one of the semi nalists named in this year’s contest. | ESTELLA’S

VEGAN DESSERT BOUTIQUE

Contenders emerge for new Detroit Lions practice facility

Let the Detroit Lions practice facility sweepstakes begin. e team has not de nitively said whether it will move out of its training center in Allen Park, but there are already at least two concepts for a new facility oating around — one in the team’s namesake city, another about 30-ish miles to the southwest.

Lions President Rod Wood recently told reporters that the team is years away from moving from its Allen Park facility — if it ultimately decides to — and it is looking at locations in Detroit as well as

around Ann Arbor.  e two that are known are entirely conceptual at this point. One is on the old Herman Kiefer hospital site at the John C. Lodge Freeway and Clairmount in Detroit across about 40 acres, while the other is in Canton Township on a hodgepodge of privately owned parcels with multiple owners at I-275 and Ford Road.

A Detroit architect, Jerry Attia, pieced together a detailed site plan for the Herman

PGA helping in $16M course renovation

By Kurt Nagl

e planned $16 million renovation at Detroit Golf Club is essential not only for hosting Michigan’s sole PGA Tour tournament, but for the long-term future of the historic club, said President Michael Pricer.

e overhaul of the private club’s North Course — the largest capital project in the club’s 120-year history — was “a long time coming” and will replace 97-year-old drainage and a 30-year-old irrigation system that groundskeepers have been patchworking for years. Club ofcials formed a committee about three years ago to devise a new course master plan.

“We really realized that the course was essentially failing,” Pricer told Crain’s. “While we did

all the things we needed to do to maintain it and ensure it works year after year, we reached a point where we recognized that was not going to work much more.”

e rst phase of the project, approved through a member vote last month, targets the footprint of the annual Rocket Mortgage Classic, played primarily on the North Course. e course will close following the tournament in 2025 and reopen ideally by the following June, according to the club. e goal is to also renovate the South Course starting in 2027 or 2028, but that plan is still being worked out and would require another member approval.

Restoring the property to its original Donald Ross design is the primary objective, Pricer

Kiefer site owned by New York City developer Ron Castellano, who said last month he hasn’t had any conversations with the Ford family-owned team about the property. Attia, a former Rossetti Associates Inc. and AECOM architect who co-founded Detroit-based architecture rm Framework E LLC with fellow cofounder and Rossetti/ AECOM veteran Pierre Roberson last summer, said he has not been commissioned for his work.

Canton Township is also attempting to lure the Lions.

Its pitch, put together in a three-page PDF the township provided to Crain’s, is for a wooded site with north of what could be more than 100 acres across multiple parcels of varying sizes immediately east of the freeway, south of Ford Road. Ofcials called this site a “hypothetical” and a way of showing the team that, if it is to ultimately relocate its practice and training facilities, “there are potential locations.”

Could state get rid of the gas tax?

LANSING — Michigan is inching toward possibly addressing a major problem in how road and bridge repairs are paid for: the fact that a lot of funding comes from per-gallon gasoline taxes while vehicles are using less fuel.

Improved fuel e ciency, combined with the transition to electric cars and trucks — no matter how quickly it occurs — are reasons why the state should explore alternatives, according to experts. Now, there appears to some traction for diving into the details.

As part of a requirement in its current budget, the Michigan Department of Transportation is expected to soon apply for a competitive federal grant to create a pilot program to study the feasibility of replacing gas and diesel taxes with road usage charges. RUCs, also known as mileage-based user fees or vehicle miles traveled fees, are fairer

“Michigan needs a new and sustainable way to fund road improvements. ... Our vehicles have changed dramatically over the last 100 years.”

Lisa Hendren, executive director of The Eastern Transportation Coalition

than taxes levied at the pump and represent a return to what was envisioned when fuel consumption was more equitable among vehicles, advocates say.

“We have got to start having this conversation in Michigan. We are lagging behind,” said Denise Donohue, CEO of the County Road Association of Michigan, which invited a national expert to speak about the issue recently at the group’s conference in Lansing.

said. at means removing dozens of overgrown trees and lling in ponds, most notably that which sits greenside of the 14th hole for the RMC tournament. Ditches will be dug out, with the dirt used to ll in the pond, improving drainage and restoring a signature Donald Ross feature.

“ at to us means a lot because of Donald Ross’ legacy as one of the greatest golf architects in the world,” Pricer said.

Tyler Rae, a Philadelphia-based

architect, was tapped for the renovation. e layout of the course will remain largely the same with some tweaks in collaboration with the PGA, which o ered guidance on the project.

“

ey actually helped considerably around just the bidding process,” Pricer said. “We were able to leverage resources in collaboration with the PGA in ways to optimize the process.”

Mileage-based user fees, she said, are “fuel agnostic. If you end up buying a hydrogen car or a fully battery-powered car or a high-mileage vehicles, everybody pays based on our use of the road system. What’s happening right now with the fuel eciency is that the gas tax has become very regressive and is putting a bigger and bigger burden on people with older cars that aren’t as fuel-e cient, people in rural areas that are maybe

David Eggert

Kirk Pinho and Jay Davis

Lions President Rod Wood said the team is looking at moving the practice facility to a Detroit site or near Ann Arbor.

Detroit Lions safety Glover Quin (27) makes a one-handed catch during practice at the Detroit Lions practice facility in 2017 in Allen Park. The facility opened in 2002. AP

What GM’s move could cost

We don’t know what General Motors Co. is paying to be the anchor o ce tenant by moving its global headquarters from the Renaissance Center to the Hudson’s Detroit development downtown.

But we have a starting point.

Dan Gilbert’s Bedrock LLC has been asking what amounts roughly to about $59 per square foot per year to lease some of the 404,000 square feet of Class A o ce space in the 1.5 millionsquare-foot, $1.4 billion project.

So let’s say, purely for example, that GM is taking 150,000 square feet on what we know is a 15-year lease. at would be $8.85 million per year, or $737,500 per month, not including electricity costs.

But that’s just based on that rough per-square-foot gure. Brokers and attorneys and landlords can come up with all sorts of creative ways to structure deals that complicate things.

I’ve asked GM and Bedrock for comment and details on the lease terms and structure. An April 15 news release says the Detroitbased automaker would not release nancial terms. It says only that GM is leasing the top oors of the Hudson’s Detroit o ce building, but doesn’t say how many oors. e oorplates are about 43,600-49,200 square feet, marketing materials for the space have said in the past.   e Hudson’s project consists of two buildings: e shorter one — where GM will be located — has 404,000 square feet of space for o ces and other uses. It is separated by an activated alley from a 680-foot-plus skyscraper with a planned Edition hotel, forsale residences and other uses. A host of other factors and costs could be built into the deal, brokers said.

First: actually moving GM out of the RenCen, which is expected to take place next year. On the low end, that could cost $5 to $7 per square foot and, at the high end,

$12.50 to $15 per square foot, brokers said.

Second: Build-out of the Hudson’s site o ce space will also be expensive — costs that have only increased the last several years as labor and materials costs have skyrocketed. Landlords typically contribute a certain amount to o set those costs to the tenant, and we don’t know how much Bedrock is coughing up.

A few years ago, a law rm, for example, could build out a new o ce for $70 per square foot, but today, they are looking at something like $130 to $150 per square foot, said Steve Morris, a longtime tenant representative who is managing principal of Farmington Hills-based Axis Advisors LLC.

“ e di erence is that lawyers like private o ces and conference rooms, and GM is probably going to have a lot of open space, except for executives,” Morris said.

Angela omas and Erica Dunlap, brokers who co-founded the AERES Real Estate rm, anticipated a build-out of $150 to $200 per square foot.

And while that may be expensive, the smaller footprint GM is expected to take in Hudson’s Detroit compared to its footprint in the Renaissance Center is likely to make that more palatable, in spite of increased labor and materials costs.

Sam Munaco, another longtime tenant representative who is president of Advocate Commercial Real Estate Advisors LLC in South eld, said tenant improvement allowances are used solely for construction, not for o ce furnishings such as furniture, audio/

visual or IT equipment.

“ ere are expenses that are beyond the four corners of the lease,” Munaco said.

Brokers anticipate some amount of free rent as part of the deal, although how much is not known. at’s a common component of o ce deals, sometimes with landlords o ering a month free for every year of the lease, or at the front end with a free rst year.

Parking costs would also likely be a GM expense.

omas and Dunlap said recently they were told parking spaces at a Bedrock-owned garage would be $270 per month, a cost that could be absorbed by the employer or passed along to the employee, depending on deal structure.

But just to stress, we don’t know deal terms. It could, in theory, be sweeter than anyone expects.

“One big caveat: Depending on how much space they are taking, they may be getting a deal of all deals,” Munaco said.

In the end, even if it is a sweetheart deal to GM, what Bedrock gives up on the front end to the automaker could be made up later with increased business from GM employees at ground-level tenants in Bedrock buildings. Some of those leases are likely structured where the real estate company collects a percentage of a retailer’s sales, for example.

“We keep thinking about the ripple e ect of bringing those employees to (the Hudson’s Detroit project) vs. having them on the island of the Renaissance Center,” omas said. “What that’s going to do for all those businesses is immeasurable.”

A rendering of the Hudson’s Detroit of ce building with General Motors’ logo at street level. GM plans to move into the new of ce building in 2025. | PHOTOS BY GENERAL MOTORS

A rendering of the Hudson’s Detroit of ce building with General Motors’ logo atop it.

Kirk Pinho

Moroun calls bridge collapse ‘a wake-up call’

By Kirk Pinho

e owner of the Ambassador Bridge called the collapse of the Francis Scott Key Bridge in Baltimore “a wake-up call.”

“It’s very important,” Matthew Moroun said in response to an audience member’s question about bridge security at the Michigan Chronicle’s Pancakes & Politics breakfast on April 12. “I’m not going to say everything’s ne and we don’t need to look at it. e

Key Bridge is a wake-up call.

It’s important to re-evaluate everything from scratch.”

e collapse is believed to have claimed the lives of six people who were part of a construction crew repairing potholes on the bridge after a ship, called the Dali, lost power and collided with it in the early morning hours of March 26. Two others who plunged into the Patapsco River were rescued.

Moroun, chairman of the Detroit International Bridge Co. that owns the Ambassador Bridge across the Detroit River, also said the company is “working with” various U.S. and Canadian border and security agencies on “developing new plans.” He did not elab-

orate in his remarks.

“

ere are water threats to bridges and there are also land threats to bridges,” Moroun, the son of the late Manuel “Matty” Moroun who died in July 2020, said. “Just to be honest, we are going through a top to bottom reevaluation of things. We had a blockade at the bridge just a few years ago, the rst time ever, in Windsor. e entire bridge was shut down for the better part of a

week. ere are new threats and we need to respond and take precautions in new ways.”

Moroun’s rare public remarks came on stage at One Campus Martius during a panel discussion moderated by Dennis Archer Jr., the chairman and CEO of Detroit-based sixteen14ventures, which is the parent company of Archer Corporate Services, Ignition Media Group and Central Kitchen + Bar. Other panelists

Michigan physicians earn less than Midwest average

By Dustin Walsh

Michigan physicians got a modest pay bump in 2023, according to new data from medical news site Medscape, but well below the national average.

Last year, the average total compensation for all Michigan physicians was $360,000, up 1.1% from $356,000 in 2022. Nationally, wages and salaries for all professions increased on average 4.7% in 2023, according to the U.S. Bureau of Labor Statistics. e big increases, however, came among lower wage positions that had seen smaller bumps prior the pandemic.

Total compensation includes base salary, performance bonuses and other sources of job-related income.

Michigan doctors, though, continue to earn less than their peers. Across the Midwest, the average physician compensation was $404,000, according to the Medscape data.

A reason for the lower compensation could be Michigan’s hypercompetitive health care market.

For instance, Michigan has more than 65 community health and hospital systems, compared to just 60 in Illinois, despite having more than 3 million more residents.

is leads to Michigan being one of the most a ordable states for health care.

Michigan ranks as the eighth most a ordable state for medical costs, according to a study released last year by prescription service provider Universal Drugstore. Patients in Michigan pay on average $1,273 per emergency room visit and $12,065 for the average hospital stay.

Texas is the highest cost state, averaging $2,318 per ER visit and $13,154 per hospital stay, according to the study.

Michigan also ranks as the most affordable state for health insurance premiums, with an annual premium through an employer-sponsored plan at $4,703 per year and has the fifth lowest average family health coverage deductible at $3,350.33, according to polling by the Kaiser Family Foundation.

e increase in overall compensation for doctors in the state was completely driven by gains primary care physicians, which saw compensation rise last year by more than 8.8%.

While specialty physicians outearn primary care doctors on the whole, medical specialists in the state saw a nearly 2% decline in compensation in 2023 compared to 2022.

It’s unclear from the report why wages declined, but the rise in compensation for primary care physicians was likely driven by a shortage in family physicians in the state due to fewer medical students opting to study primary care.

is year, only 37% of graduates from the Michigan State University College of Human Medicine chose a residency in primary care, down from 48% the year prior.

e reason is pretty clear: Medical specialists earned an average of $392,000 in 2023, compared to $284,000 for primary care doctors, according to the Medscape study.

Nationally, the incentives to focus on specialty is nancial. Orthopedics doctors earn, on average nationally, $558,000. Plastic surgeons earn $536,000 and cardiologists earn $525,000 on average.

And the pay disparities don’t stop at specialization. According to the Medscape report, woman and minorities are paid far less than their white male peers, nationally.

Male physicians on average earned 29% more than their female peers. And while Black physicians saw their compensation grow roughly 7% last year, they still earn $37,000 less annually than white physicians.

20, 25 years of past di erences,” Moroun said. “Obviously the bridge, No. 1 border crossing on the northern border, and we’ve had to expand many times over the years and acknowledged some of that expansion didn’t go so well with the community, right? ey bore some of the brunt of that, so we had a lot of hatchets to bury.”  e agreement reached late last year between DIBC, the city and the Hubbard Richard Residents Association  allows for the expansion of the bridge’s plaza in the southwest Detroit neighborhood and also generally restricts further Moroun family property purchases in the area generally bounded by Fort to the south, the existing plaza to the west, Bagley Street to the north and 16th Street to the east. ere are several others provisions to the pact.

were Joi Harris, president and COO of Detroit-based DTE Energy Co., and Ryan Maibach, president and CEO of South eld-based general contractor Barton Malow Co.

When asked about biggest projects they were working on, Moroun pointed to a recent agreement with residents living around the Ambassador Bridge.

“ is agreement that we made with Hubbard Richard settled 10,

ere has long been concern about Moroun property purchases in the area around the bridge displacing residents as well as negative health impacts.

“Most importantly, we started a new relationship where, at least, my company. ... I love my dad’s legacy, I love him very dearly, but things have to change over time,” Moroun told Pancakes & Politics attendees. “We’ve got a better relationship now, and it’s the agreement that I’m most proud of and how things are changing for our future.”

The Dali container vessel after striking the Francis Scott Key Bridge that collapsed into the Patapsco River in Baltimore on April 9. BLOOMBERG

Matthew Moroun

GM’s move creates opportunity for RenCen

The news last week of General Motors moving out of the Renaissance Center and into Dan Gilbert’s new Hudson’s Detroit development seemed to have come out of nowhere. But it quickly became apparent that the deal, and Gilbert’s idea to make the pitch to GM CEO Mary Barra, has been in the works for quite a while.

e move is a smart one for GM. e company gets out from the hulking Renaissance Center and into a smaller footprint, which when nished will be Detroit’s signature property. e location will surely be more attractive to workers at a time when too many remain less than enthusiastic about coming back into the o ce.

We hope this move turns out to be a good one for Detroit, too. Much remains unknown about what will become of the Renaissance Center. GM is retaining ownership, at least for now, and has pledged to spend the next year working with Gilbert’s Bedrock real-estate company to study potential future uses.

If anyone knows how to breathe life into an old Detroit building, it’s Dan Gilbert. e fact that he and his team are fully committed to this project gives us condence that the outcome will make sense and be good for Detroit.

is moment o ers the community an opportunity to reimagine the Renaissance Center and its relationship to the city and the riverfront. e fact that Matt Cullen, the chairman of the Detroit Riverfront

Conservancy who has worked for both GM and Gilbert, played a key role in this deal is a good sign. Cullen is a visionary who has led the way on the transformation of the city’s riverfront that has redened how Detroit interacts with the waterway, making it attractive and accessible to pedestrians, bikers and sightseers.

e Renaissance Center is a fortress on the riverfront, despite hundreds of millions of dollars spent over the years to make it less forbidding. And let’s face it:

Detroit’s relationship with the Renaissance Center is a complicated one. It was conceived in the early 1970s by Henry Ford II to show the city’s rebirth following the 1967 riots. It opened it 1977, a massive complex largely walled o from the city.

No one really loves the Renaissance Center, and yet its 727-foot central tower, the tallest building in the state of Michigan, is the most recognizable characteristic of Detroit’s skyline.

e RenCen complex is a total of seven

buildings, two of which — the 500 and 600 buildings — are owned by Friedman Real Estate of Farmington Hills. GM owns the other ve — the central tower that holds the Marriott hotel, and the four buildings that surround it in each direction. GM has used the o ce buildings as its headquarters since 1996.

Over the next year, Barra said GM will work with Bedrock, the city of Detroit and Wayne County government to determine the future use of the Renaissance Center.

e focus is on redevelopment, although a GM spokesman told Crain’s senior reporter Kirk Pinho that demolition is not o the table to free up prime riverfront property.

We hope the parties also consider attempting to lure another corporate tenant to the city. While GM’s move may be a smart one for the company, it amounts to moving around the real-estate deck chairs from a city and downtown standpoint — when Detroit would really bene t from growing the base.

Another potential option could be residential conversion, at least at some level. e site o ers spectacular views of the riverfront and, while o ce-to-residential conversions are costly, clearly this is a moment for thinking big and creatively.

While there is much yet to be learned about this project and what’s next, we are con dent the right players are involved to redevelop the Renaissance Center property so that it bene ts the city and its future.

Here’s a wake-up call to change the K-12 system

Our K-12 public education system is not doing right by our kids. e crux of this crisis is unfolding in our own backyards.

A new analysis comparing Michigan public school district performance against peer districts in top-performing states shows that nearly every district isn’t keeping up with the competition. From the Upper Peninsula to the southern corners of the state, and from suburbs to rural communities, Michigan students are trailing their peers.

problem: 88% of Michigan districts underperform in math, 70% of Michigan districts underperform in reading, and 71% of Michigan districts underperform in graduation rates.

Without a strong educational foundation, Michigan will continue to struggle to grow, and our children will lose out on what we all want most for them — opportunity.

e rst-of-its-kind District Comparison Dashboard, released by Launch Michigan, sheds light on the severity of the

e crisis within Michigan’s K-12 system has been brewing for decades. Local debates de ect attention from the core issue: Michigan school districts are underperforming their peers in critical areas. Without a clear understanding of the problem or its severity, previous attempts to improve the K-12 public education system in Michigan lacked the urgency or fortitude needed to truly stick. One of the reasons previous reform efforts have stalled is a lack of accountable leadership. e state superintendent functions independently from the governor and legislature, disconnected from crucial aspects like policy and funding. Michigan

lacks the all-hands-on-deck approach necessary for genuine transformation and often abandons reforms before results can take hold.

Today, Michigan is unable to guarantee that a high school diploma represents 21st century skills, competencies, or preparation for career success. Moreover, students in poverty, those with special needs, and English language learners haven’t been given the resources to reach their full potential. Ultimately, we’re endangering the future prosperity of our state, hurting our ability to grow family incomes and close equity gaps, and depriving our children in the process.

While this situation is daunting, there is a solution.

Launch Michigan, a nonpro t organization bringing together top state business, education, labor and philanthropic leaders, has a comprehensive framework that reimagines the K-12 public education system. It’s a three-pronged approach that includes setting high performance standards, overhauling governance and optimizing resources that ensure equitable funding in the classroom. ese intercon-

nected strategies pave the way for transformative change.

While some improvements can be made within the current structure, the most signi cant impact on genuine K-12 reform lies in the hands of voters. is is done through the people they elect and the issues they support.

It’s time to stop giving lip service to education transformation. It is a disservice to our children and to our state’s future. Making systemic improvements will take a bipartisan, collaborative — and yes, Herculean — e ort, and we must focus on all three prongs of the solution for it to be e ective.

It’s time to stop giving lip service to education transformation. It is a disservice to our children.

ere’s a common saying that knowledge is power. We sincerely hope that parents and guardians, policymakers and educators will see the power of this dashboard and use it as a tool to demand real change.

Ron Hall, (left) president and CEO of Bridgewater Interiors, is an executive committee member on the Business Leaders for Michigan board and is on the Launch Michigan Board of Directors. Mike Jandernoa, founder of 42 North Partners, is an executive committee member on the Business Leaders for Michigan board.

The Renaissance Center’s future is being studied as General Motors plans to leave the complex. GETTY IMAGES

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Sharing the family business can free up cash and motivate employees

By Rachelle Damico

After nearly 80 years in business, Haviland Enterprises Inc. transitioned its family-owned company to a 100-percent employee-owned business using an employee stock ownership plan.

Divvying up a family company through an ESOP, restricted stock units, stock options or another method has a variety of bene ts.

“ e Haviland Family chose to implement an ESOP to provide liquidity to the family while maintaining the company’s culture, legacy and operations and to reward the employees whose hard work contributed to the company’s success,” said Haviland President and CEO Meg Post by email.

e Grand Rapids-based chemical manufacturing, packaging and distribution company, founded in 1934, has 275 employees. Over the past ve years, sales have grown by 75% to more than $200 million.

Effectively dividing the family business requires a team of professionals — including attorneys, financial advisers and CPAs specializing in stock options — to help guide owners throughout

“Typically, a business owner who is interested in implementing an ESOP plan truly believes that their employees are an essential contributor to the value of the company.

Charles Nemes, CEO of Nemes Rush Family Wealth Management

the process.

“ ese discussions take years for people to nalize,” said Danelle Harrington, a partner and attorney at Grand Rapids-based law rm Warner Norcross + Judd. “So, start the plan earlier rather than later.”

Getting started

An important early step when o ering stock or equity options to employees is conducting a feasibility study that identi es the potential tax implications and upfront and annual costs of sharing the company.

Charles Nemes, CEO of Novibased Nemes Rush Family Wealth Management, said a CPA can determine what’s realistic by providing cost projections, anticipated cash ow and the risk factors facing the business owner.

“It’s a process, and the owner has to be onboard and understand what they’re getting into upfront,” he said.

Appraising the company

Having a certi ed business appraiser valuate the company is imperative before reallocating ownership, said Harrington, who counsels on succession planning and business formation from the Midland o ce.

“Valuations are essential for helping family-owned businesses with succession planning, estate planning purposes, valuing a gift of stock to family or employees, determining if the owners have estate tax concerns, or if they are considering a sale of the business,” she said.

Valuation methods depend on

the business and may include:

w Analyzing assets

w Evaluating past, current and future earnings

w Examining cash ow

w Making market comparisons or using other methods

For example, the U.S. Chamber of Commerce reports that assetbased approaches may work well for corporations but not as well for sole proprietorships.

“Sometimes people cut corners and don’t want to pay for a full valuation by having their CPA do an informal valuation,” Harrington said. But such methods don’t hold as much weight with the IRS if the valuation is needed for estate and tax purposes, she said.

Common frameworks

Employee Stock Ownership Plans: ESOPs give workers ownership interest in the company in the form of stock shares and can help business owners who need to free up cash in the company.

Employees participating in an ESOP receive a manual describing how the plan works, including costs, vesting schedules and tax implications.

“Typically, a business owner who is interested in implementing an ESOP plan truly believes that their employees are an essential contributor to the value of the company,” Nemes said. “ ey want to make sure their employees bene t from their long-term loyalty and the future growth of the company.”    Haviland Enterprises implemented its rst ESOP in 1997, selling 46% of the company to employees and leaving 54% ownership with the family.

Post said the minority ESOP successfully met the family’s liquidity goals and desire to continue their legacy. In 2013, the family sold their remaining stake in the company to Haviland’s ESOP trust using an independent team of attorneys, advisers and trustees.

“Employees appreciate the longterm view and are excited to work for an organization where their hard work is rewarded through ownership and sharing in the company’s success,” Post said.

Nemes said providing stock — or equity in a partnership or limited liability company — can incentivize, motivate and retain family and nonfamily employees.

“It does encourage employees

Employees at Haviland Enterprises HAVILAND ENTERPRISES

to pay more attention to the bottom line because they themselves are truly shareholders,” Nemes said. “When it comes time for enhancing revenue or perhaps other sales opportunities for the business, they’re more apt to do that because they have more skin in the game.”

Restricted Stock Units: RSUs are conditional forms of equity and vested over time. For instance, employees may receive a certain number of RSUs when they reach a productivity goal or work their way up to a management position, Nemes said.

“It encourages people to move up the ladder within an organization,” Nemes said.

Stock Options: Some owners allow employees to purchase shares in the company’s stock at a predetermined price over a certain period of time. In this case, employers typically disclose eligibility requirements, vesting schedules and plan details in the employees bene t handbook, Nemes said.

“Stock options can be a very powerful way to reward key employees of a company,” Nemes said. “Since a strike price (the price at which an employee can buy the shares) is determined in

previous years, growth of the company can be transferred to the employee by exercising their option to buy the stock.”

Shared ownership

While Haviland eventually sold all of its stock to employees, some business owners prefer to share ownership. Knowing whether this is the best option means answering several questions, including:

w Who will have control over the company?

w Will the purchase price for family and nonfamily employees be the same?

w Will family and nonfamily have to follow the same rules or restrictions?

“Fair and equal are not always the same thing,” said Harrington.

She said one option is to transfer to nonfamily employees a small amount of stock and allowing the company or employee to purchase additional shares in the future.

“ is would be an approach for someone looking to retain a good employee and ensure they will eventually have a path to owning the business, if that is desired, without necessarily needing to transfer too much value or con-

trol away from the current owners now,” she said.

An alternative is gifting stock to a family member with a buy-sell agreement that restricts the value of the stock in case they leave the company.

In this instance, if the family member decided to leave the company within the rst ve years employment, they might receive only 50% of the fair market value. Yet, if they stay for ve years or longer, they could receive the full value of their shares upon their departure.

“It’s less risky for the company if the family member being gifted stock would turn around and leave the company and then the remaining owners and the company would need to buy back their gifted shares,” Harrington said.

Executing the chosen plan

Once the business owner and advisory team agree on terms and conditions, Nemes said an attorney specializing in stock options should draft the legal agreement.

Once the plan has been established, it’s di cult to pull back. So, a business owner should consider all the implications of each option.

Ready to retire? Consider your options

By Rachelle Damico

Companies such as Gardner White, Carhartt and Meijer have been family-owned and -operated for generations. Yet, passing a company down to the next generation isn’t always a given nor always the best option for many reasons.

RL Polk & Co. was owned by its fourth-generation founder until 2013, when IHS Inc. acquired the 143-year-old consulting company for $1.4 billion.

“Every situation is unique,” said Kelly Burnell, an attorney at Bodman PLC who advises on estate planning, trust administration, wealth transfer tax strategies, business succession planning and more.

When planning the next phase of their lives, whether that includes new ventures or retirement, family business owners should carefully consider their options — whether to transfer ownership to family members, have family members buy the company or sell to outsiders.

Dawn Jinsky, leader of Plante Moran Wealth Management’s

“What’s important to a family business owner is (asking themselves if) they want their business to continue to succeed in the future.”

Kelly Burnell, attorney, Bodman PLC

family legacy practice in Southeld, said family business owners should carefully consider their ability to be nancially independent after exiting their company.

“ ere is no one-size- ts-all approach.”

For over a century, Yeo & Yeo has been helping family businesses navigate their unique dynamics. From financial management, tax planning and risk management to ownership transition, valuation, succession planning, and beyond, we are with you — right here in Michigan.

MICHIGAN FAMILY-OWNED BUSINESSES CRAIN’S LIST

Ranked by 2023 revenue

4 WALBRIDGE Detroit48226 313-963-8000;walbridge.com

6 SERRA AUTOMOTIVEINC. Fenton48430 810-936-2730;serrausa.com

$5,953.9

$3,603.6

1916

John Rakolta Sr. 3

Aaron Van Andel, senior account manager, grandson of Jay Van Andel; Monreau (DeVos) Stewart, brand marketing associate III, granddaughter of Rich DeVos; Olivia DeVos, associate talent development specialist II, granddaughter of Rich DeVos

Maibach, president, CEO, grandson; Ben Maibach III, vice chairman, chief community of cer, son

John Rakolta III, president,

73% General contracting, construction management

ResearchedbySonyaD.Hill:shill@crain.com|Thislistoffamily-ownedbusinessesisanapproximatecompilationofthelargestsuchbusinessesinMichigan.Crain'sde nes"family-owned"asany companymajority-ownedbymembersofthesamefamilythathasreachedasecondgenerationofmanagement.Itisnotacompletelistingbutthemostcomprehensiveavailable.Crain'sestimatesare basedonindustryanalysesandbenchmarks,newsreportsandawiderangeofothersources.Unlessotherwisenoted,informationwasprovidedbythecompanies.Forsomecompanies,thefounders werelaterboughtoutbyanotherfamily. e. Crain'sestimate. 1. FromForbes.com. 2. Foundedin1924asC.O.BartonCo.byCarlOsbornBarton.TheMaibachfamilyacquiredmajoritycontrolin1961. 3. George B. Walbridge and Albert H. Aldinger founded the company in 1916. John Rakolta Sr. bought the company in 1963 with business partner Robert Robillard. 4. Automotive News.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data

Tushman

Earl Tushman, president/CEO, grandson; Larry Tushman, VP/secretary, grandson; Reed Tushman, VP/director of operations, great-grandson; Marc Tushman, VP/director

GAS TAX

driving more pickups and SUVs and larger vehicles, and less of the burden is being carried by the newer cars that presumably might be folks that just aren’t carrying their fair share."

A 2023 study, for instance, found that EV owners pay around 70% to 80% of what owners of traditional vehicles pay toward Michigan roads and bridges even though they likely put more wear and tear on pavement because of their weight and the torque their motors can produce.

Lisa Hendren, executive director of e Eastern Transportation Coalition, a partnership of transportation agencies spanning 18 states and Washington, D.C., told attendees that funding generated from fuel taxes is "teetering on the edge."

"Michigan needs a new and more sustainable way to fund road improvements, and MBUF could be part of that solution," she said. "Our vehicles have changed dramatically over the last 100 years and our funding mechanisms need to change as well."

Twenty years ago, more than 4.95 billion gallons of gas were sold in the state. e gure was

Gretchen Whitmer's population council say is a $3.9 billion road-funding gap.

e state’s 30-cent tax per gallon accounts for $1.5 billion, or more than a quarter, of the $5.5 billion that goes toward road and bridge programs. e 18.4-cents-a-gallon federal gas tax funds projects, too. In 2019, U.S. motorists were paying 81 cents a mile in federal gas tax compared with 94 cents in 1994, Hendren said.

“I think it’s extremely important that we stop kicking the can down the road on this conversation.”

Rep. Ranjeev Puri, a Canton Township Democrat

4.25 billion-plus last year, a 14% drop, according to the nonpartisan House Fiscal Agency. Diesel sales were up over that period, rising 19% to 895.3 million gallons from 750.9 million gallons in 2003.

Fuel tax increases have helped to o set decreased consumption, but the long-term trend is alarming at a time Michigan is facing what the industry and Gov.

OPTIONS

From Page 9

“ at’ll start to narrow some of (their) options,” she said.

“Do they need something additional from the company in order to live the lifestyle that they envision moving forward?”

But family-owned businesses don’t need to narrow those options alone. Burnell said consultants, such as attorneys, CPAs and nancial advisers, can guide them through the process.

“I can’t stress enough the importance of talking to your trusted advisers so you can be strategic on the approach,” Burnell said. “We can share what we’ve seen be successful and where we’ve seen the failures.”

Crain’s talked to advisers about what family business owners should consider before exiting their companies and the essential steps to take.

Keeping the business in the family

Business owners considering

Four states — Utah, Oregon, Virginia and Hawaii — have implemented permanent MBUF programs that are voluntary for drivers. At least 37 states have some research under way, singly or in multi-state coalitions. Implementing an MBUF can take eight to 10 years, Donohue said.

In a typical pilot, voluntary participants are o ered options to report their mileage — such as manually or with plug-in devices, in-vehicle telematics or phone apps —and may get reports on how fees compare to what they would have paid in fuel taxes.

transferring ownership to one or more family members rst need to identify who is willing and capable of upholding the vision and values of the family company and who has the skills needed to keep the company nancially stable.  ere are three options in this case: selling the company to the family member, gifting it or combining the two, Jinsky said.

w Selling: Some business owners need cash or assets to help fund their retirement, Jinsky said. In this case, a sale would be an appropriate option.

w Gifting: ose who are nancially independent, however, can gift the business to a family member. However, they should consult an adviser about current state or federal gift tax laws. Gifting shares can help family business owners reduce future estate tax exposure. is year’s federal lifetime exemption — which sunsets on Dec. 31, 2025 — allows owners to gift up to $13.61 million of assets estate taxfree.

w Selling and gifting: Jinsky added that family company owners may choose to combine the meth-

ere are a host of issues to work out, including how out-of-state driving is accounted for, how often fees are assessed and how to keep collection costs low.

If Michigan is awarded a federal grant, the pilot could take years to start and complete, according to a timeline laid out earlier this year at a legislative hearing. Patrick McCarthy, director of MDOT's Bureau of Finance and Administration, said it would depend on how quickly the federal government announces and issues grants and the speed at which the state sets up, conducts and evaluates the pilot.

Under his estimates, the earliest it would be completed is the second half of 2026. e process potentially could last until 2030, though.

e U.S. Department of Transportation, which will weigh applications and provide up to an 80% funding match, says the focus should be on "broad-based alternative revenue mechanisms that could ultimately be scaled to a national level to help maintain the long-term solvency of the Highway Trust Fund, as opposed to localized solutions that are not scalable."

Due to uncertainty about the

ods when they want to receive some funds but not the full proceeds from the sale or if the business value exceeds the allowable gift sum.

e three critical steps to selling and gifting the company to a family member include having the company appraised, identifying what assets will be included in the sale and putting together the agreement.

Selling part of the company to outsiders

Sometimes, it’s best for familyowned businesses looking to alleviate company debt or improve liquidity and nancial security among family members looking to exit to sell a portion of their companies to an outside buyer.

Burnell often recommends vetting strategic buyers — with the help of a business broker — so they align with the company’s goals.

ere’s another partial sales option, Burnell said.

Family-owned businesses with excellent management teams may consider selling a portion of the

be available. I think it's a good use of state dollars quite honestly to move into a di erent way to collect user fees as revenues decline," said Lance Binoniemi, vice president of government a airs for the Michigan Infrastructure and Transportation Association, a construction trade group. "We don't have a study out there that suggests that we need less money. Every study suggests we need more money. And if you’ve got a declining revenue source, you've got to gure out a way to at least stabilize it."

grant process, MDOT is asking legislators this spring to allot $5 million in the next state budget for a pilot as a backstop, spokesperson Je Cranson said.

Separately, the department recently used a federal grant to conduct a survey to get residents' attitudes on road usage charges and will next gauge how those could shape some respondents’ future transportation choices. A nal report on the study is scheduled to be released in 2025.

is past winter, Whitmer's population commission called for the state to examine alternative dedicated funding sources to maintain roads, including VMT fees, tolling and a better utilization of public-private partnerships.  e developments are being welcomed by advocates for more road funding, who — pointing to projections of worsening pavement conditions and a "cli " when Whitmer’s ve-year bond program ends — still face an uphill climb persuading lawmakers to raise the gas tax or hike vehicle registration fees in the short term while mileage user fees are explored.

"I think there are some federal grants that are out there that might

company to their employees through an employee bene t plan, such as an Employee Stock Ownership Plan or ESOP.

“What’s important to a family business owner is (asking themselves if) they want their business to continue to succeed in the future,” Burnell said.

Steps to selling to family members and outsiders include determining the company’s value and:

Selling to outsiders

Family-owned businesses may consider selling their company to an outsider if there are no family members that are interested or capable of running the business, if the company received a favorable o er, or if there’s a lack of harmony or disputes among family members, Burnell said.

“If you don’t want to have strings attached to the business, you can just walk away from it,” she said.

After 17 years in business, Garden Fresh Gourmet founder and CEO Jack Aronson sold the Ferndale business to Campbell Soup Co. for $231 million in 2015 be-

e nonpartisan Citizens Research Council of Michigan has said it is unclear what the state could learn that has not been addressed through previous and ongoing pilots in other states. e 2021 federal Bipartisan Infrastructure Law, it noted in a 2023 report, created a national vehicle permile user fee pilot and any Michigan-based program would risk being rendered redundant or obsolete by future federal activity. "If a RUC pilot cannot be designed to answer outstanding questions, it may not be worth pursuing," the CRC said.

Rep. Ranjeev Puri, a Canton Township Democrat who chairs the House transportation budget subcommittee, said he has heard di ering opinions over whether to go for federal pilot dollars or not and whether to even do a pilot or simply enact a voluntary program like a few states have.

"I'm very much in the camp that if this was going to be the path forward and solution that we thought it was going to be, then I think this is going to be enough of a transformational change that we probably would need a pilot and kind of pick up those learnings and hopefully roll it out full-scale," he said.

Puri supported the budget provision directing MDOT to go after the federal funds.

“I think it's extremely important that we stop kicking the can down the road on this conversation," he said.

cause of the overwhelming demand for Garden Fresh products and high debt.

“When I assess the market, I think market forces are starting to work against us. Some of the biggest food companies in the world bought some of our competitors. I think we need the resources that a Fortune 500 company like Campbell can bring to the table,” Dave Zilko told Crain’s in 2015. Zilko was Garden Fresh’s vice chairman at the time.

Business owners should know the tax implications

No matter the chosen method of transfer or sale, companies should work with advisers to develop strategies that lower their tax exposure.

“Family business owners should be mindful of where they’re going to get hit harder with the tax to determine what the best course of action is for transferring ownership,” Burnell said. “Getting the outside advisers and professionals to guide you through that is paramount.”

NFL DRAFT GUIDE WHERE TO EAT, DRINK AND PLAY

With more than 300,000 people expected to descend upon Detroit for the 2024 NFL Draft April 25-27, bars and restaurants mostly within walking distance of the massive event are primed for a solid week of business. Eating and drinking options downtown and beyond include new and longtime establishments, from classic Detroit coneys to highend steakhouses and rooftop cocktail lounges with sweeping views of the city. And there are places to go that offer recreation and history, too. Following are some options for out-of-town visitors as well as those from the area who rarely wander downtown but want to experience the energy of the three-day event. Most of the businesses listed below are within walking distance of Campus Martius Park, where the Draft will be based. But we also included some options in a couple of other popular neighborhoods that are a short QLine or taxi ride away. Note: This list is not meant to be comprehensive; there are plenty more places to explore. By | Jay Davis, Nick Manes and Beth Reeber Valone

SPORTS-THEMED HANGOUTS

BOOKIES BAR AND GRILLE

2208 Cass Ave.

Multi- oor spot behind the Fox Theatre offers a variety of beers and American fare. The rooftop bar offers great views of the city.

DETROITER BAR

655 Beaubien St.

Dive-y sports bar near Greektown. Lots of TVs with cheap (for downtown) drinks and standard bar food, as well as Greek favorites such as saganaki.

THE ELWOOD BAR AND GRILL

300 E. Adams Ave.

Popular hangout situated at the doorstep of Ford Field and Comerica Park. The outdoor area features live music when the weather allows.

HARRY’S

2482 Clifford St.

GILLY’S

1550 Woodward Ave.

This upscale sports bar from Dan Gilbert’s family opened in time for the Draft. Gilly’s is named in honor of Gilbert’s son Nick, who died in May 2023 at 26.

This bar and restaurant is a popular spot for pre- and post-gaming sports events and it boasts good food.

HOCKEYTOWN CAFE

2301 Woodward Ave.    Multi-story sports bar in the heart of downtown.

The draft beer list varies by oor.

Hockeytown has more than 30 TVs to catch the Draft, playoff basketball and hockey and early-season baseball.

THE SPORTSBOOK AT HOLLYWOOD

CASINO AT GREEKTOWN

1200 St. Antoine St.

Hollywood Casino recently announced a partnership with ESPN

Hockeytown Cafe is located in the busy entertainment district of Detroit that includes the Fox Theatre and Little Caesars Arena.

Bet, which will be complete prior to the NFL Draft. The Hollywood Casino Sportsbook features 40 betting kiosks, 25 HDTVs and a 30-foot video wall for watching games. Types of bets available include straight bets, parlays and prop bets.

SWEETWATER TAVERN

400 E. Congress St.    Corner bar near Greektown known for marinated wings, as well as ribs and standard bar food offerings. Offers bar and table seating.

HOCKEYTOWN CAFE VIA FACEBOOK

Gilly’s GILLY’S CLUBHOUSE

BUDDY’S PIZZA

1565 Broadway St.

Buddy’s lays claim to being the creator of “Detroit-style” pizza, that of thick crust and crispy corners. Draft visitors can check out the downtown location or trek out to the original restaurant at 17125 Conant St. at McNichols Road on the east side.

CLIFF BELL’S

2030 Park Ave.

The legendary downtown jazz club has been around since 1935 and regularly draws big-name acts and fans for dinner, drinks and music.

FISHBONES

GREEKTOWN

DOWNTOWN CLASSICS FINE DINING

400 Monroe

This longtime Detroit restaurant in the heart of Greektown offers seating for 500 with an extensive menu including steaks, seafood and sushi.

LAFAYETTE CONEY

ISLAND AND AMERICAN CONEY ISLAND

118 W. Lafayette Blvd.,

114 W. Lafayette Blvd.

Detroiters are faithful to their favorite Coney Island restaurants, which are longtime neighbors and rivals. Try them both to see which you like best.

LONDON CHOP HOUSE

155 W. Congress

This iconic restaurant, which originally opened in 1939, serves steaks, seafood, wines and cocktails. It also includes the LCH Cigar Lounge and Billiards Room located above the restaurant.

HIGHLANDS AND HIGH BAR

400 Renaissance Center, oors 71 and 72

The iconic destination restaurant at the top of the Renaissance Center overlooking the Detroit River describes itself as “an unexpected riff on a classic steakhouse with an epic collection of wine.” Make a reservation.

LUMEN

1903 Grand River Ave.

This restaurant and bar — a stunner for its location at Beacon Park — offers upscale modern American cuisine and drinks.

MAD NICE

4120 Second Ave.

The bright and airy Italian restaurant in Midtown offers wood- red pizza, some vegetarian options and great atmosphere.

This high-end downtown restaurant features wood- red steaks and an expansive list of wines.

SEXY STEAK

1942 Grand River Ave.

This recently opened steak house offers a variety of cuts and has a Himalayan salt-lined room that houses a variety of cuts of steak.

SHEWOLF

PASTIFICIO & BAR

438 Selden St.

This Midtown restaurant’s focus is on contemporary Italian cuisine inspired by old Rome.

TABLE NO. 2

1045 Brush St.

This Greektown restaurant features llet mignon and a full sushi bar. Fresh sh, such as red snapper and sea bass, is offered, too. Staff prepare some dishes, like a Caesar salad, foie gras and white truf e popcorn, tableside.

Enjoy food, drinks and amazing views from Highlands and its High Bar at the top of the Renaissance Center in downtown Detroit. | HIGHLANDS VIA FACEBOOK

Buddy’s Pizza | BUDDY’S PIZZA

Cliff Bell’s | CLIFF BELL’S

Fishbones Greektown | FISHBONES

FLOOD’S BAR AND GRILLE

731 St. Antoine

Flood’s features soul food with R&B and hip-hop playing in the background and DJs every weekend.

HONEST JOHN’S

488 Selden St.

This longtime bar opens early for breakfast and the kitchen stays open until the bar closes at 2 a.m. every day.

MONARCH CLUB

33 John R St., penthouse High-end bar with small plates on the top oor of the Metropolitan Building. Outdoor seating areas offer views of the city.

QUEEN’S BAR

35 E. Grand River Ave. Straight-forward bar with nightclub vibes past dark, located around the corner from the Shinola Hotel. No TVs here and the kitchen offers simple sandwiches.

Hail a taxi/Lyft/Uber, rent a Mo Go bike or hop on a scooter for a short trip to Detroit’s historic Corktown neighborhood, which boasts a bustling dining and drinking scene.

On Michigan Avenue: Ottava Via, Bobcat Bonnie’s, Slows Bar BQ, Takoi, Mercury Burger & Bar, Grandma Bob’s, Cork & Gabel, Two James Spirits, McShane’s, Nemo’s, The Yard at Corktown and Lager House.

Elsewhere: Batch Brewing Co., Mudgie’s and Alpino.

Take a free ride on the city’s QLine or jump on a DDOT bus to reach some great dining and drinking spots in Midtown that offer everything from casual fare to ner dining. Selden Standard, Vigilante Kitchen + Bar, Mario’s, Detroit Shipping Co., Grey Ghost, Pho Lucky, The Whitney, HopCat, Jolly Pumpkin and Motor City Brewing Works.

DIME STORE

719 Griswold St., inside the Chrysler House building

Dime Store serves scratch-made breakfast, lunch and brunch food all day.

HUDSON CAFE

1241 Woodward Ave.

Right in the heart of the action, this newly renovated restaurant excels at breakfast, brunch and lunch fare.

IGGY’S EGGIES

34 W. Grand River Ave.

This walk-up window serves breakfast sandwiches and burritos.

Perfect spot for an inexpensive, lling breakfast on the move.

WOODWARD CONEY RESTAURANT

616 Woodward Ave.

Diner-style eatery serving a variety of coney staples, from large omelets to coney dogs and salads.

‘DRAFT DAY IN THE D’ WATCH PARTIES

The Downtown Detroit Partnership will host “Draft Day in the D,” a three-day party across ve locations outside the of cial NFL Draft Theater in Campus Martius.

From April 25-27, there will be a live video feed of the draft projected on 10 walls that are 20 feet wide in:

w Capitol Park

w Beacon Park

w Paradise Valley Beatrice Buck Park (Harmonie Park)

w Grand Circus Park

w and a closed-off portion of Woodward Avenue between State and Witherell streets.

The parks will feature food trucks, local vendors and live music.

THINGS TO DO IN TOWN

CHARLES H. WRIGHT

MUSEUM OF AFRICAN AMERICAN HISTORY

315 E. Warren Ave.

The nearly 60-year-old museum includes 35,000 artifacts dedicated to educating visitors on the history of African Americans in the U.S.

DETROIT INSTITUTE OF ARTS

5200 Woodward Ave.

The DIA has one of the largest collections of art in the country, including the famous Diego Rivera “Detroit Industry Murals.” Workshops, lectures and exhibits are offered each weekend.

DETROIT RIVERWALK

1340 Atwater St.

This paved riverfront walking and biking path spans more than 3 miles from Rosa Parks Boulevard to the west to the Belle Isle bridge to the east. Along the way, enjoy family activities, nature areas and views of Canada across the river.

EASTERN MARKET

2934 Russell St. Eastern Market is the largest historic public market district in the United States and largest open-air owerbed market in the country. More than 150 food and specialty businesses operate within the market district selling all types of goods including produce, meat, spices, jams, owers, and poultry. Saturday is the main market day.

THE HENRY FORD

20900 Oakwood Blvd., Dearborn

Check out the Museum of American Innovation, Green eld Village and/or the Ford Rouge Factory Tour.

MOTOWN MUSEUM

2648 W. Grand Blvd.

The historic Motown Museum is inside the house that served as the music label’s rst headquarters. Artifacts including Michael Jackson’s bedazzled white glove are available to view. A recording studio is also on-site.

The Detroit Institute of Arts has one of the best art collections in the U.S., featuring more than 65,000 artworks from the earliest civilizations to the present. | DETROIT NSTITUTE OF ARTS

NFL DRAFT GUIDE: PARKING, EVENTS AND MORE

By Kirk Pinho

e best bet for parking downtown for the NFL Draft may be to not park downtown at all.

Detroit and the city and region’s transit providers are touting a eet of transportation and parking options to accommodate the anticipated 300,000-plus attendees docking in the city April 25-27 to watch 32 teams select 256 new players across seven rounds.

e Detroit Tigers also host the Kansas City Royals April 26-27, just for good measure.

Not only is the city expecting an in ux of people, major streets downtown are closed for the event — including Je erson Avenue from Washington Boulevard to Brush, and Woodward Avenue from Larned to State, including intersections at Congress, Fort and Michigan.

O cials are hoping that the more people use things like SMART and DDOT bus service, ride share services like Uber and Lyft, fan shuttles from Midtown, Corktown and the riverfront, and other modes of transportation other than their own personal vehicles, the less strain on the road network, parking lots and decks downtown.

In addition to reducing that stress, said Sam Krassenstein, the city’s director of infrastructure, another objective is to get people to use public transportation in general — perhaps for the rst time, period.

e city hopes with that initial bus ride or People Mover trip, users “have a good experience and choose to do that again when they come downtown for an event or just coming down,” Krassenstein said.

Choices for getting around downtown include modes with zero, two, four or more wheels, and they’ll connect you to a bevy of designated parking areas not just in

VENUES READY TO PARTY GETTING AROUND

By Nick Manes

e NFL Draft coming to Detroit later this week comes at a perfect time for the Kerr Russell & Weber Plc law rm.

e Detroit-based corporate law rm, which also has an o ce in Troy, will be celebrating its 150th anniversary at the time of the draft and unveiling a newly renovated o ce on the 25th oor of the Ally Detroit Center building o ering views of Hart Plaza and Campus Martius, each main venues for the draft festivities.

Given the con uence of events, it makes for an ideal time for a party for assorted clients and friends of the rm, with “heavy appetizers,” drinks and music.

“We’re in the center of it all,” said Kathleen Westfall, an attorney at the rm. “ ere’s so much

and around downtown, but also around the city and region. And of course, they’ll connect you to other parts of downtown as you’re taking in the Draft experience along with other NFL die-hards.

It’s a highly choreographed effort that will put the region’s transportation and parking apparatus to the test on a national stage.

“Any time you’re having a ton of people downtown — in this case, we’re looking at a couple hundred thousand people across the three days — I would look at it as a stress test on a transportation side and infrastructure side,” Krassenstein said.

Eric Bettis, a Wayne State University assistant professor in the Urban Studies and Planning Department, said he would be “very surprised” if many of the draft attendees rely on the city’s network of public transportation options, particularly the suburban and city bus system, although he anticipates large spikes in QLine and People Mover usage.

“I think that most people probably wouldn’t be adventurous enough — not because it’s dangerous, by any means, but just because navigating a city you’re not familiar with on a non- xed transit route is a lot for some people,” Bettis said. “Most people would much rather rely on a rental car and Google Maps to get where they’re going.”

Bettis also said he has seen improvement in the public transit network the last several years, although there is still a long ways to go.

“I don’t think the fragmentation of our transit system is going to create major problems with people getting around,” Bettis said. “DDOT and SMART service are getting better integrated, in terms of at least co-locating stops and, to some degree, integrating a little better with the People Mover.”

Arrive early for a parking spot

O cials encouraged attendees to arrive by 10 a.m. ursday and Friday if they want to get downtown parking in advance of the noon start time.

“It will be crowded this week in Detroit, but that is the privilege of being a city that does big things and have global impact,” Claude Molinari, president and CEO of Visit

Detroit, said recently at a news conference.

Mayor Mike Duggan described the draft in that news conference as “the biggest event this city has seen in many, many years.”

As a result, parking is expected to be limited — and pricey.

On ParkWhiz, a mobile parking app, there are still spots available to reserve in the Greektown area for $91 a day starting April 25. Across

from the Westin Book Cadillac, a reserved spot is $100 a day. Some parking options at Shelby Street near Larned are $60 a day, per a ParkWhiz search last week. A deck at Mack and Woodward is going for $45 a day.  at’s not unexpected, as not only are parking prices for the draft high, but so are other things like hotels and Airbnbs.

Simple economics, owners said. “Add 300,000 people to downtown and what would one expect,” said Richard Karp, a Detroit developer who owns the parking lot across from the Book Cadillac and has redeveloped several buildings in the Capitol Park neighborhood.

excitement over the draft coming to Detroit and giving Detroit that much-needed stage.”

e Kerr Russell law rm is hardly alone in seeking out spaces for corporate parties and VIP events during the NFL Draft, which o cially kicks o the evening of April 25.

e event — which according to one analysis could draw an estimated 255,000 visitors and generate net economic activity of $161 million over the span of less than one week — is shaping up to be a busy one for two of Detroit’s largest downtown landlords and their properties within and near the draft footprint.

Rock Events, the newly spunout company for managing event spaces and services within the Rock portfolio of companies controlled by Detroit billionaire busi-

nessman Dan Gilbert, is slated to have around 20 events at its assorted venues around downtown, according to CEO Andrea Gengler. at includes the 16th- oor event space of the One Campus Martius building now called Elevate and at the State Savings Bank on Fort Street just blocks west of the draft’s central footprint.

Organizations using the spaces include ESPN and the NFL Network and a wide variety of others, according to Gengler, who declined to share expected revenue gures for the various events during that week.

Gengler said Rock Events uses Detroit-based vendors for food and beverage options at its spaces, something that will be important as tens of thousands of visitors ock to the city for the draft and its adjacent events.

“Because when people come in from out of town, they don’t know who to use and they don’t just want to do something generic,” Gengler said. “ ey want to do something that feels local.”

Spaces owned by the Ilitch fam-

ily and its various companies are also playing prominently in draft activities.

e Fox eatre, for instance, will play host to projected rst round NFL Draft prospects and their families on ursday eve-

Above: The Detroit People Mover runs on an elevated track, while the QLine runs on Woodward Avenue in downtown Detroit. Left: Detroit city of cials released a map of the Detroit People Mover route around the 2024 NFL Draft Theater and Experience. There are three entrances to the NFL Draft event in Detroit. | KURT NAGL AND SCREENSHOT

“ is is basic supply and demand. e bars and restaurants will be wheel-barrowing money to the bank. is is great for the downtown economy,” Karp said in an email.

Park and ride options

Detroit’s two trains — the People Mover and the QLine — are free to ride, and will be o ering expanded hours and increased frequency to get people around the core downtown closest to the NFL Draft.

“ e way to move around downtown is not going to be to drive. It’s going to be to locate your People Mover site,” Duggan said recently.

e People Mover runs a oneway circular route around downtown Detroit. e city is promising 24-hour train service during the draft event, with a train every ve minutes. From its Grand Circus Park station, the People Mover offers a way to circumvent a 15minute walk to the closest entry

ning prior to the start of the draft “for a red carpet, VIP reception,” Allison Gabrys, vice president of corporate communications and marketing for Olympia Development of Michigan, wrote in an email to Crain’s.

Co. River East parking garage at 1000 Franklin near the Renaissance Center are $15 prepaid. ose costs include both the shuttle, as well as your parking spot for the day.

“Others I’m sure are charging ridiculous amounts, because they can,” chuckled Jim Ketai, who coowns the Bagley Mobility Hub, which has over 1,250 spaces and was built just a few years ago on Bagley near Michigan Central Station.

Ketai said LAZ Parking, the deck’s manager, joined the Corktown Business Association and conversations about using the deck for the draft shuttles emerged from there perhaps a month or so ago. Although only about 100 of the deck’s spots had been pre-leased as of April 16, the ownership anticipated that it would lease up fully at the end of last week or early into this week.

point to the NFL Draft experience. Its Financial District and Millender Center stops are the closest to two of the three entry points to the NFL Draft experience downtown.

QLine trains will be running up and down Woodward Avenue. ere are four parking areas on and along the Woodward corridor north of I-94. at option is $5. If you take that option, the QLine will drop you o at Sproat Street in front of Little Caesar’s Arena. From there, you’ll have to walk nearly half an hour to one of three entrance points to the NFL Draft experience. Or, consider walking 10 minutes to the People Mover’s Grand Circus Park station.

Other park and ride options include a $10 fan shuttle bus from a Wayne State University parking garage at 450 Palmer, which is operating on a rst-come, rst-serve basis.

Shuttle buses from the Bagley Mobility Hub at 1501 Wabash in Corktown and the General Motors

Rock Events, which manages event spaces within Dan Gilbert’s portfolio of companies, expects to host around 20 events at its venues downtown, including at Elevate (left), the 16th- oor event space of One Campus Martius, and the rooftop of the Madison Building (above). |

e Ilitches’ Little Caesars Pizza, meanwhile, is the NFL’s ocial pizza sponsor and “will have a signi cant presence at the Draft, with on-site, interactive fan engagement activities in Hart Plaza that will be free to the public.”

From those traveling from further out in metro Detroit, there are park-and-ride operations from SMART — the Suburban Mobility Authority on Regional Transportation —  from Great Lakes Crossing in Auburn Hills; Mt. Clemens Parks and Recreation; Lakeside Mall in Sterling Heights; the Troy Civic Center Parks and Recreation Department; Oakland Community College’s Orchard Ridge campus in Farmington Hills; the South eld Bus Station; the Westland Police Department; Fairlane Town Center in Dearborn; the Lincoln Park Community Center; and the Southgate Meijer store.

Buses depart the locations one each hour between 9 a.m. and 3 p.m. It’s $2 each way.

From the Regional Transit Authority of Southeast Michigan, there are Detroit Air Xpress, or DAX, coach options from Detroit Metropolitan Airport for $6. Service is 3:30 a.m. to 11 p.m. each day, and there are 16 non-stop trips each day, the city says. ere is also the D2A2 coach service for $6 each way, connecting downtown Detroit and downtown Ann Arbor.

at will include appearances by Detroit Lions players including Frank Ragnow and Sam LaPorta on ursday afternoon and Jahmyr Gibbs and Amon-Ra St. Brown on Friday afternoon.

Gabrys also noted that there will be two Ilitch-owned Detroit Tigers home games during the draft period, on Friday and Saturday at Comerica Park in downtown Detroit.

While events such as those put on by Ilitch-associated brands and companies are more largescale than perhaps a law rm hosting clients, it all boils down to one “key takeaway,” according to Westfall, the Kerr Russell member: “ ere’s a lot to celebrate.”

e attorney added that the rm’s party begins in the evening on the rst night of the draft and she expects many attendees to stick around until at least the Lions make their rst-round pick many hours later.

DETROITERS ON THE FRONT LINE

By Jay Davis

Detroiters are most certainly in the mix when it comes to preparations leading up to this week’s NFL Draft.

NFL Director of Event Operations Steve Farago on April 16 told Crain’s that more than 80% of the 1,000 NFL “Teammates” working the draft are from Detroit and the metro area. e Teammates program o ers temporary paid positions for work leading up to and during the 2024 NFL Draft, which runs April 25-27 in downtown Detroit.

“We’re putting Detroiters to work,” Farago said. “A lot of what you see being built here is being built by local labor and sta . at’s a big goal of ours is to make sure we’re giving that work to local folks. We have our NFL sta from all over the country, along with some of our vendors, but when it comes down to a lot of the sta either building the event or even working the event, a lot of our Teammates, I think over 80% of them are local Detroiters. So we really want to make sure that we have the local folks that are also participating in helping us execute the draft.”

Organizers previously told Crain’s that small businesses would be a major part of the draft, including dozens of food vendors.

Farago could not provide details on how much those businesses will bring in for working the draft, but said the businesses will greatly bene t from the exposure. More than 300,000 people are expected to come into the city for the three days of events.

“With the draft going from city to city every year, we want to make sure we’re giving back and that there’s that inclusion with the people and businesses in the city,” Farago said. “We work to make sure local residents feel included, whether they’re helping

to put the event on or attending the event. at’s something we take great pride in when we move from city to city, with the draft speci cally, and something we work closely with our local partners on in making these events come to life.”

e draft infrastructure is coming to life at a rapid rate.

e stage of the NFL Draft eater is now covered, in the area just east of Campus Martius. Temporary seating is set up south of Campus Martius.

e draft footprint runs from Campus Martius to Hart Plaza on the riverfront. Road closures continue and signs welcoming fans from the other 31 NFL markets can be seen throughout downtown.

Farago said he expects the city to look great for the millions watching the draft on TV. He said organizers and the league expect visitors to become fans of the region.

“I think the pride and excitement of Detroiters is coming through and shining on multiple fronts,” he said. “Our local partners have been so supportive in the planning and execution, and really just making sure we have a great show for the residents of Detroit and also the visitors who come in for the draft. ere are a lot of diehard fans in regions in close proximity to Detroit. We’re really looking forward to bringing those folks in and showing them what Detroit has to o er.”

NFL Draft. JAY DAVIS

ROCK EVENTS

SUSTAINABILITY

Spearheading sustainable hospitality for a better tomorrow

Bold initiatives are rede ning luxury hospitality through environmental stewardship

MATT BUCKLEY

President & COO

Midwest Group

MGM Resorts International

Matt oversees operations of MGM North eld Park and MGM Grand Detroit. He has held the role of President & COO since November of 2022. Matt joined MGM Resorts in 2008 as the VP of Marketing in Detroit.

As part of MGM Resorts International’s ambitious sustainability agenda, MGM Grand Detroit stands at the forefront of implementing best practices for environmentally responsible hospitality. Every day, our team lives up to our steadfast commitment to reduce our environmental impact, and as we continue to build on our 25-year record of fostering economic growth in the region, our team’s ongoing success exempli es how luxury and sustainability can coexist harmoniously.

MGM Grand Detroit has boldly implemented a range of forwardfacing initiatives to realize signi cant reductions in our carbon footprint. rough investment in state-of-theart energy-e cient LED lighting and HVAC systems, we have achieved a remarkable 25% reduction in energy consumption per square foot, posting real results in our broader e orts to combat climate change and saving in operating costs as well. First reducing demand and then pursuing renewable electricity is our strategic approach to energy management and the reduction of our carbon footprint.

Water conservation is another area where MGM Grand Detroit leads by example. To meet our goal of reducing water consumption per square foot by 33%, we have implemented innovative measures including water-e cient xtures and landscaping practices. Guests are encouraged to reuse their towels, helping the hotel become more sustainable by cutting down on hundreds of gallons of laundry water usage on a day-to-day basis.

Furthermore, our commitment to waste reduction has resulted in a consistent reduction of materials disposed working toward our 2025 goal of reducing waste to land ll on a per square foot basis by 60%. rough comprehensive recycling programs and waste-diversion strategies - in 2023 alone, MGM Grand Detroit recycled nearly 200,000 pounds of cardboard and more than 5,000 pounds of glass - we have signi cantly reduced the amount of waste sent to land lls in a few short years.

MGM Grand Detroit recently introduced a strategy of providing bulk amenities for all of our hotel rooms.

Rather than placing small, individual shampoo, conditioner and body wash bottles in every guest room daily, large re llable bottles are mounted on the walls of every shower. By implementing this simple approach portfoliowide, we have eliminated the annual consumption of nearly 27 million bottles of single-use plastic, resulting in a decrease of nearly 70% of total plastic used for hotel guest amenities.

At MGM Grand Detroit, sustainability doesn’t only mean reducing our environmental impact — it’s also a corporate philosophy dedicated to creating meaningful change that bene ts both our local and global community for future generations. Our e orts extend far beyond our property, encompassing initiatives such as rethinking sustainable meeting and convention practices and stewarding meaningful partnerships with local organizations that share our vision for a better future.

As we continue to pursue our sustainability goals, we also remain committed to transparency and accountability. Recognized as a leader in sustainability by global organizations

such as CDP (formerly the Carbon Disclosure Project), MGM Resorts International is dedicated to driving positive change across the hospitality industry. In 2024, we were included on the prestigious CDP A List for climate change for the second year in a rowone of just 347 companies out of 23,000 scored. rough our collective e orts, we are not only rede ning luxury hospitality for our guests today but also shaping the way our entire industry does business for the future.

MGM Grand Detroit’s actions which support our commitment to sustainability serve as an exemplar in hospitality, proving that luxury, economic growth and environmental responsibility can go hand in hand. By setting ambitious goals, implementing innovative initiatives, and fostering meaningful partnerships, we are paving the way for a brighter, more sustainable tomorrow — one where luxury and sustainability are synonymous.

How a sustainability strategy can help your business grow

MATTHEW B. ELLIOTT

President Bank of America Michigan; Sustainability Executive, Business Banking and Global Commercial Banking

As Sustainability Executive, Elliott partners with our enterprise sustainable nance teams to drive strategy and enable our bankers to support our client needs on sustainability topics. As President, he works with company leaders to deliver global nancial services to clients and communities throughout Michigan.

When you think of all the risks and opportunities facing your business today, sustainability may not be top of mind – yet. For some, it may seem like a passing trend or something that only big companies need to think about.

Yet the adoption of corporate sustainability, including the transition to a low-carbon economy, is already underway and it’s going to a ect most companies. How you respond could in uence your ability to maintain and strengthen existing and new key business relationships within your supply chain and beyond, attract the best employees and customers, stay ahead of evolving regulations, and more.

While some of your competitors may be slow to embrace the change that’s underway, there are several ‘noregret’ steps your company can take so that sustainability pays o for your business in the years ahead.

Protect your place in the supply chain and gain market share. Already,

nearly 90% of global emissions are now covered under a national sustainability target, and more companies every day are setting these targets. Importantly, these companies are assessing not just their operations, but companies across their supply chains. If they haven’t already, chances are that companies you depend on for your business will soon be requiring you to meet similar targets and sustainability standards.

Be proactive. Ask the companies you work with about their sustainability goals and where you t in. Use that information to help guide your sustainability journey. As slow-torespond competitors struggle to catch up, you could stand to gain market share.

Stay ahead of regulations. While businesses are no strangers to regulation, mandates for rms of all sizes to disclose detailed information on emissions and business practices are increasing, as evidenced by California’s new regulations that impact rms all over the U.S. Get a

head start by establishing processes for assessing and reporting your emissions and use of water and other resources. Rather than viewing this as a distraction from your business, consider it an integral part of your operations, yielding valuable and actionable insights to drive value.

Invest in cleaner energy to lower your costs. Equipment, utilities and o ce supplies are among the top costs for most businesses. Incremental investments in e cient lighting, heating and cooling can have quick paybacks and are just the start.

Make sustainability an integral part of your brand. e intangible bene ts of working toward sustainability may be as valuable as the tangible ones. Consider that 58% of consumers say they buy from or advocate for brands they believe in, 60% say their beliefs and values in uence where they choose to work, and 75% worry about climate change, according to the 2022 Edelman Trust Barometer. Above all else, telling an authentic story about your e orts toward sustainable

operations could strengthen your brand and help you attract and keep valued employees.

Gain near-term bene ts without knowing all the answers. Committing to sustainability may seem daunting, especially at rst. But the fact is, nobody has all the answers. While the business community is establishing standards for cleaner business practices and ways to measure progress, knowledge of how to get there will continue to evolve.

Get the conversation going within your company and with others in your industry, even as you hone and perfect your strategy moving forward.

RENCEN

at work is expected to take about a year and could involve outside consulting rms, principals involved with the project said following a late afternoon news conference announcing the deal on the ground oor of the Hudson’s Detroit development.

“We work with a bevy of architects, planners, general contractors and the like, and we’ll bring them in collectively or individually,” David Massaron, chief economic development and real estate o cer for GM, told Crain’s. e two players involved, GM and Gilbert’s Bedrock, can be patient in seeking the right mix of uses — although they plan to work quickly.

“Our plan is to stick to that date and our plan is to work as quickly and expeditiously as we can,” Massaron said.

e ultimate nal mix could involve converting some of the buildings to residential space — a costly proposition to begin with, but one that has become more popular during the COVID-19 pandemic — or commercial space, or some other mix of uses.

e RenCen towers could also remain o ce space if the right user or users are attracted. Demolition could be a possibility, freeing up prime Detroit riverfront land, although Massaron said “the focus is on planning for redevelopment.”

“ at’s what we are geared toward, and that’s what our orientation is,” he said. Precisely how much space GM is taking in Hudson’s Detroit is not known. Massaron said the deal was nalized April 15, although the arrangement allows for exibility in the footprint.

“We are thrilled to have GM moving to Hudson’s,” said David Di Rita, principal of Detroit-based

major positive impact on the continuing growth of the district.”

Depending on the outcome of the RenCen discussions, public dollars could be involved.

Massaron said it’s too early to discuss what, if any, would be sought. But a redevelopment project of that scale could revolve around millions in incentives, ranging from tax abatements to transformational brown eld funding.

Eric Larson, president and CEO of the Downtown Detroit Partnership, called the April 15 news “a very exciting development” for the city and one that’s good for Detroit, GM and Bedrock.

e Roxbury Group, a major development company in the city that has several properties near the Hudson’s site. “ ey have been a key player in the revitalization of downtown for nearly 30 years now and their relocation to the Lower Woodward corridor will have a

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INSURANCE / BROKERAGE AssuredPartners

Matt Cullen, a former GM and Bedrock executive who has been involved in the discussions, said conversations about GM about taking space in Hudson’s Detroit go back years, although the most recent incarnation goes back about a year.”

Cullen is also head of Jack En-

tertainment and board chair for the Detroit Riverfront Conservancy. “It’s a big day,” Cullen said following the announcement.

GM CEO Mary Barra, in response to reporters’ questions about potentially selling the RenCen, said the automaker is “working to decide what the right outcome is for the building.”

“We are embarking on taking the next year to work together with the mayor, Wayne County and Bedrock to imagine what it can be,” Barra said.

ere have previously been conversations between Gilbert and GM about purchasing the riverfront complex, although those zzled prior to the start of the pandemic in spring 2020.

Mayor Mike Duggan told reporters following the event that he is “totally open minded” about the Renaissance Center’s future.

He pointed to what he described as an “enormous demand for housing” but also noted that a

redevelopment into that kind of space would be expensive. He also pointed to other potential uses that could be in the mix.

He also noted Gilbert’s history of nding new uses for old, iconic properties around downtown.

“Nobody has repurposed buildings more than Dan Gilbert,” Duggan said.

e seven-building RenCen complex opened in 1977 and includes four o ce towers surrounding a Marriott hotel tower, as well as two smaller o ce towers. GM has used the o ce towers surrounding the Marriott tower as its headquarters since 1996, when it bought that part of the complex for $73 million. Since then, GM has invested more than $1 billion in the building and surrounding Detroit RiverWalk.

e two smaller o ce towers  — the 500 and 600 buildings — on the east end of the property were sold late last year to Farmington Hills-based Friedman Real Estate.

CrossCountry Consulting

Grigg Graphic Services, a boutique communications resource offering web development, digital marketing, print production, and mailing services in house, is pleased to announce that Tom Wilkinson has joined the team. Tom will be utilizing the revitalized Chroma facility in Detroit’s evolving North End to extend Grigg’s reach both in Detroit and throughout Metro Detroit, to develop new relationships as well as continue the reach to past clients.

AssuredPartners is pleased to welcome

Cody Salinas as a Commercial Sales Executive. A graduate of Louisiana State University, Cody initially served as a licensed Nursing Home Administrator focused on pro tability enhancement. Cody also received two awards during his tenure as a Producer for Federated Insurance. Now at AssuredPartners, Cody is eager to leverage his industry expertise in health care, contracting and transportation to service clients in an ever-evolving insurance industry.

General Counsel and Chief Risk Of

Previously serving as Rehmann’s primary outside legal counsel, Klippert boasts nearly 30 years in private practice and business and corporate services including mergers and acquisitions, commercial transactions, and estate and succession planning.

In his new role, Klippert will lead the rm’s expanding in-house legal and risk management teams.

CrossCountry Consulting is pleased to announce that Brent Borio has been appointed Partner supporting the rm’s Accounting Advisory practice. With over 20 years of experience, Brent has deep knowledge of transaction and M&A support across a range of industries with a focus on diversi ed industrials, and brings vast experience across the transaction lifecycle including sell-side and buy-side work for corporate clients, private equity rms, and private equity portfolio companies.

The Renaissance Center in downtown Detroit consists of seven connected high-rise buildings. It opend in 1977 and was purchased by GM in 1996 for its corporate headquarters.| DEAN STORM/CRAIN COMMUNICATIONS

David Massaron, chief economic development and real estate of cer for General Motors Co., speaks during a news conference during which GM announced it would be moving its headquarters from the Renaissance Center to the Hudson’s Detroit site next year. | QUINN BANKS

LIONS

For its part, the Lions said this month that there is no proposal in front of it for the Herman Kiefer site, and the team declined comment April 10 in a follow-up inquiry on the Canton Township property.

A spokesperson for Mayor Mike Duggan said, “ ere are no conversations going on at all between the Lions and the city on any potential practice site in the city of Detroit.”

“At no point have the Lions expressed any interest to the city in the Herman Kiefer site,” John Roach, Duggan’s director of media relations, said this month.

e top administrator in its current base, Allen Park, has not responded to messages from Crain’s.

But the team has talked publicly in recent weeks about a potential relocation of those facilities, which sit on about 22 acres.

“We’re still evaluating it,” Wood told reporters late last month, according to the Detroit Free Press. “I know there’s a lot of rumors out there and every time I talk about it, it leads to more people reaching out to me with ideas on where we should be. I would say it’s in the early stage of evaluating it. We’re focused on potentially that. Obviously, downtown with the 375 project and the impact that’s going to have on the stadium and tra c ow, so we have a real estate consultant who’s working on all those things, but very, very early stages of any announcement on the practice facility.”

The team’s Allen Park practice facility cost $34 million to build and opened in 2002 with an indoor field, two outdoor fields, offices and other features, according to MLive.com. That’s the same year the team moved to Ford Field downtown from the now-demolished Pontiac Silverdome. Reports have described the Allen Park facility as difficult for much of metro Detroit to access, geographically, and once they do, difficult to park at.

Architect pitches plan for Detroit site

e Herman Kiefer site concept would include not only practice elds — four outdoor and one in-

door — but also a team museum and retail shop; sports medicine facility; 25,000-seat-plus exhibition stadium; grand stand; a park; space for soccer, basketball and other sports; a community pavilion; parking deck; and other uses.

In an interview, Attia said the

Lions were a former client of his at Rossetti and he worked on various projects for the team, although they are no longer working together. He said he has put forward his vision to the city, the Detroit Economic Growth Corp. as well as the team.

“At this point, it’s kind of a wait and see situation,” Attia said. “You can take a horse to water, but you can’t force them to drink. We put together a strong, positive plan that meets all the requirements of an NFL training facility.”

He estimated the project cost at $250 million or more, with $100 million for infrastructure improvements, demolition and blight removal and other work footed by the city; and $150 million-plus to build the project itself.

Under that vision, about onequarter of the historic Herman Kiefer hospital property, closed for more than a decade, would be demolished. Attia said the western wing of the hospital, built a quarter-century after Albert Kahn’s original 1928 building, would be removed. e remainder of the former hospital would be converted into things like luxury suites and other types of viewing areas.

In addition, almost all of the other buildings within the proposal’s footprint would be torn down, including the Crosman Alternative High School, designed by Malcomson & Higginbotham in 1911, and the Hutchins School, also designed by Malcomson & Higginbotham 11 years later in 1922. Notable former Hutchins students included Casey Kasem, Lily Tomlin, Smokey Robinson, Martha Reeves, Diana Ross and Aretha Franklin, according to HistoricDetroit.org.

Tomlin was also a Crosman student, according to HistoricDetroit.org.

A slew of smaller buildings designed by George D. Mason and Kahn between 1909 and 1919 would be torn down, as well, Attia’s proposal shows.

Attia said the vision would be to bring new uses to the neighbor-

hood around the old hospital without gentrifying it.

“ is would require a pretty signi cant community bene ts agreement,” Attia said of his proposal. “If you want the Lions to come, you should lean into this.”

Township vies for Lions’ attention

Outside of the city, others have caught wind of the team’s potential practice facility move.

Gavin Beckford, economic development and Downtown Development Authority manager for Canton Township, said the community heard “through the grapevine” that the Lions were exploring a potential practice facility relocation.

It’s too soon to tell whether public incentives would be part of any package trying to lure the facility.

e Ford Road/I-275 site highlighted, Beckford said, sits across from a large planned development announced earlier this year that would include things like new restaurants like a Chick- l-A and a Portillo’s, plus a Topgolf location and a new hotel.

A Lions practice facility across from that would be in a community that has attracted new commer-

“At no point have the Lions expressed any interest to the city in the Herman Kiefer site.”

John Roach, director of media relations for Detroit Mayor Mike Duggan

cial development and residential projects for years.

“We thought that we at least should let people know that we are here,” Beckford said. “If there is interest in this, if they see the opportunity we see, then we can take this to the next level. is is all very preliminary, but we want to at least think about the possibility of locating here.”

Beyond the pond, trees and ditches, other minor changes to the course are planned to improve the presentation and production of the PGA tournament.

“ inking about stands going up around certain holes, we just need to make sure there’s enough space for the accommodations of the event,” Pricer said. “ ose are some of the nal tweaks in the process.”

e course renovations will follow upgrades made inside the clubhouse. e club completed the second leg of $9 million in improvements last year that included upgraded dining areas, locker rooms and a new pro shop.

Detroit Golf Club just hired a new director of golf, Carl Hays, who comes from John’s Island Club in Vero Beach, Fla., the club announced this month. Hays replaces Josh Upson, who left in February.

Work on the course is being funded through an assessment on current and incoming members of $5,760 for full Class A members and a monthly dues increase of $170. Senior members pay half those gures. e initiation fee remains $36,500.

Pricer said the club has seen “some minor turnover,” as is typical for clubs asking members to shoulder capital projects, but the club is still at 785 members, near the highest level it has been in decades. e club has the PGA and Rocket to thank for that, too. e RMC tournament elevated the pro le of the club right at the time when the popularity of private clubs in general saw a resurgence.

Business at the northwest Detroit club has boomed since it became the site of the PGA tournament in 2019, which has led to a revenue boost from course rental fees and, more signi cantly, from new members.

e Rocket Mortgage-backed PGA Tour stop this year is sched-

uled for June 27-30. Detroit Golf Club is under contract to host the event through 2027.

“We really bene tted by a strategic decision by the club and Rocket to bring the RMC to the club,” Pricer said.

Metro Detroit has seen a boom in investment at private clubs in recent years. e rebuild of the clubhouse at Oakland Hills Country Club after a re in 2022 is the highest-pro le project, but there are plenty others.

Pine Lake Country Club is investing $20.4 million in renovations to its clubhouse and golf course in West Bloom eld Township. Orchard Lake Country Club in Orchard Lake Village wrapped up a $7.1 million renovation in 2019, and Forest Lake Country Club in Bloom eld Township underwent a $10 million overhaul.  Birmingham Country Club recently poured millions of dollars into its course and banquet space as did Meadowbrook Country Club in Northville Township and Red Run Golf Club in Royal Oak.

Architect Jerry Attia independently developed a conceptual site plan for a Detroit Lions practice facility on the old Herman Kiefer hospital site at the John C. Lodge Freeway and Clairmount Avenue in the city across about 40 acres. The pitch includes four outdoor and one indoor practice eld, a team museum and retail shop; a sports medicine facility; a 25,000-seat-plus exhibition stadium; a grandstand; a park; space for soccer, basketball and other sports; a community pavilion; a parking deck; and other uses. | SCREENSHOT OF PROPOSAL

Canton Township of cials created a three-page PDF pitching the idea of locating the practice facility in the municipality. This screenshot shows the 100-acre area across multiple privately owned parcels in the southeast corner of the Ford Road and I-275 interchange that of cials are suggesting as an option. | SCREENSHOT OF PROPOSAL

STELLANTIS

In a separate case, a di erent judge on April 11 denied the automaker’s motion to force a manufacturer of gears and pinions to keep shipping. Cutting o the ow of those parts could cause a shutdown of Stellantis plants in Kokomo, Ind., that build transmissions for the Ram 1500, Wrangler, Grand Cherokee, Charger, Durango, Paci ca and a dozen other platforms, according to the lawsuit.

ose plants were already shut down at the end of March due to the dispute, which resulted in millions of dollars in losses. After the judge’s denial last week, the automaker paid the parts supplier $100,000 under dispute to keep parts owing until the judge decided whether to grant a court order forcing the supplier to ship. at order is expected within days.

“If not quickly remedied, thenancial impact on FCA will be catastrophic and will cause tens, if not hundreds, of millions of dollars in shutdown damages, in addition to the incalculable losses from being shut out of future supply work with its suppliers and losing various employees due to forced layo s,” lawyers for the automaker said in a motion for the temporary restraining order that was denied.

Lawyers on the supplier side call the lawsuits a “faux” emergency born from Stellantis’ monthslong refusal to grant cost relief. e automaker’s stance is that suppliers cannot exit long-held contracts, no matter how unfavorable the economics may have become in the past few years.

“It is extremely disappointing that we must use the court system as a last resort to resolve some of these supplier issues that shut down our plants, idle our and other suppliers’ workforces, and delay vehicle deliveries to our customers,” a Stellantis spokesperson said in an email to Crain’s. “We will continue to take the necessary steps to protect our company, employees, suppliers, dealers, communities and customers.”

e disputes lay bare the fragile interconnectedness of the automotive supply chain and o er a rare look inside the fraught relationship between Stellantis and its suppliers.

at relationship has been increasingly strained since the merger between Fiat Chrysler Automobiles and Peugeot S.A. was announced in 2020 and nalized the following year, supplier executives and industry experts have told Crain’s.

In 2022, the carmaker tried to implement a new set of terms and conditions for suppliers, forcing them to pass along all cost savings and remain locked in unfavorable contracts. Stellantis rescinded the terms ve months later after major blowback from parts makers.

But the situation took a dramatic turn for the worse earlier this year.

At an industry town hall in Novi in February, Stellantis’ North American supply chain lead Marlo Vitous told hundreds of supplier executives and industry insiders in attendance that the company would no longer accept claims for cost increases, two people who were present at the event told Crain’s.

e policy was handed down by top brass at the transatlantic automaker, people familiar with the matter said. Stellantis CEO Carlos Tavares had hinted at plans to take a harder line with suppliers last summer when he told reporters that reducing production costs was a key priority.

e automaker’s new policy has drawn ire from parts makers, with one executive calling it “abominable.” Other supplier executives have told Crain’s that the relationship with Stellantis has become toxic to the extent that they have considered scrapping business with the automaker or no longer quoting new programs.

Stellantis told Crain’s that over the last few years, the company addressed in ationary pressures on suppliers by o ering relief “contingent upon their commitment to improving operations and reducing costs.” e company said it will continue to “rigorously evaluate and re ne our operations across all facets of the company” in pursuit of long-term sustainability and price competitiveness.

e same can also be said for other carmakers. Locked into costly new labor contracts with the UAW and an electric vehicle arms race with Tesla and foreign automakers, the Detroit 3 automakers are looking to squeeze out costs in other parts of the business, including their supply chains.

At the same time, many suppliers are still looking to be made whole by automakers after three years of production and supply chain volatility ate away pro t margins that haven’t fully recovered. While automakers brought in record pro ts, parts makers bore the brunt of the nancial impact from the supply chain crisis.

At Stellantis, the conversation has turned from cost relief to cost savings as “the automotive industry continues to face challenges that put its long-term sustainability at risk.”

“Many of our supplier partners understand that to overcome the challenges of vehicle a ordability, they must operate with the same level of commitment to reduce their costs,” Stellantis told Crain’s. “However, some suppliers are threatening to disrupt our manufacturing operations by continuing to demand substantial price increases. Such actions undermine the collaborative spirit required to nd opportunities to reduce and absorb costs in order to maintain a ordability for our customers.”

Lawsuits

Stellantis sued Kamax, a German tier-one supplier whose North American base is in Lapeer, in late February, a week after the fastener manufacturer stopped shipping parts, according to the lawsuit. It was the culmination of months of disagreement, resulting in the temporary shutdown of Toledo Assembly.

e supplier’s refusal to ship parts impacts nearly all of the automakers’ North American assembly and powertrain operations with the potential of hundreds of millions of dollars in losses, according to the motion for a preliminary injunction submitted by Birmingham-based attorney Stephen King on FCA’s behalf.

“… (It) will have disastrous e ects on FCA’s ability to produce its vehicles … require FCA to shut down the supply of hundreds of other suppliers and will likely cause FCA and such other suppliers to layo or idle thousands of employees,” the motion said.

Stellantis also claimed Kamax is “one of many suppliers” threatening to stop shipping if not granted a price increase, and not granting an injunction could cause a “domino e ect” of suppliers withholding parts.

Judge Victoria Valentine granted the motion March 2, forcing Kamax to continue shipping parts.

Birmingham-based attorney Jason Killips, representing Kamax, led a motion to dissolve the preliminary injunction April 5, arguing that Stellantis does not have the contractual right to Kamax’s parts.

“ ere is no factual dispute about what the contracts say, that Kamax was not willing to deliver the parts to FCA except for higher prices, that FCA has taken possession of the parts against Kamax’s will, and that FCA has used those parts for its own purpose — building vehicles,” Killips said in the motion. “ e only relevant legal question is whether FCA has a contractual right to Kamax’s parts. As explained above, it does not, and the dominos fall from there.”

A separate lawsuit led April 9 by Stellantis against Illinois-based MacLean-Fogg Component Solutions LLC has taken a di erent track.

e tier-one supplier, which has major operations in Michigan, makes pinions and gears for transmissions on Jeep, Ram 1500 and other vehicles.

On March 5, the company told Stellantis it would stop shipping parts unless it received a 26% price increase, amounting to an additional $100,000 per week, retroactive to January. Two weeks later, it stopped supplying parts, forcing the transmission plants in Kokomo to shut down, which resulted in $3.7 million in damages, the lawsuit said.

“Defendants refused to end the shutdown of the Kokomo plant until FCA rst agreed to pay a lump sum payment of $1.4 million to defendants, over-and-above the contract prices …” according to the complaint submitted by Ann Arborbased attorney Doron Yitzchaki.

On April 4, the automaker issued the supplier a purchase order under protest in exchange for shipments through April 12, keeping the Kokomo plants open.

However, Stellantis never paid, according to the supplier’s Birmingham-based attorney Jonathan Jorissen. Instead, the automaker

CEO of Livonia-based AlphaUSA, thought he had a deal.

e small tier-one supplier of metal fastener assemblies and stampings had been eating material in ation costs to the tune of hundreds of thousands of dollars. After months of negotiation, Dardas said the supplier and Stellantis came to an agreement near the end of 2022 to tie the contract to an index, protecting AlphaUSA from the wild price uctuations.

Nothing changed, though, and the longtime supplier executive’s inquiries have been met with silence, he said.

led suit against MacLean-Fogg, seeking a temporary court order to keep parts owing.

“… It appears FCA has changed its mind again, intentionally delaying its payment (or worse, reneging its agreement to pay) under protest for parts, and claiming sudden ‘emergency’ that is entirely of its own making,” Jorissen said in response to the motion seeking the restraining order.

Stellantis’ lawyer said it would take 18-24 months to source production of the components from another supplier, adding that “the economic consequences of a cascading automotive industry disruption of this magnitude is massive and immeasurable.”

Still, Judge Michael Warren on April 11 denied the emergency motion for a temporary restraining order that would have forced the supplier to keep shipping parts. at prompted Stellantis to submit to MacLean-Fogg’s payment demands “under hostage threat” of shutting down the automaker’s plants, its lawyer said.

e third lawsuit has the same theme but with a cyberattack twist.

A data breach against automotive supplier Yanfeng late last year cost Stellantis more than $26 million in damages and shut down production of Ram and Jeep vehicles at three assembly plants in metro Detroit and one in Mexico, according to the automaker’s lawsuit led against the supplier in January.

After the automaker charged the damage to Yanfeng’s account, the Chinese-based supplier of instrument panels, door panels and center consoles protested and stopped shipments before a court order forced it to resume. All told, the automaker lost more than $300 million in revenue because it was unable to manufacture 6,000 vehicles without parts from Yanfeng, its lawyers said.

“…Data breaches are one of many inherent risks of doing business,” and responsibility falls on the supplier, Stellantis argued.

Yanfeng countersued, seeking damages of its own and dismissal of claims for damages to Stellantis.

Yanfeng asked the judge for “damages arising from FCA’s practice of systemically ordering components and e ectively canceling its orders last minute including labor, storage, scrap and raw material costs unnecessarily incurred by Yanfeng.”

A date for pretrial was in that case is set for Aug. 15, if the sides fail to settle their dispute by then.

‘Constant con ict’

Chuck Dardas, president and

“It’s abominable. We felt that we had agreed to something, and that’s not being honored,” Dardas said.

“It’s very frustrating because we still deliver on time to them every day, and then when it comes time to honor commitments that we feel have been made to us, it’s not there.”

Disagreements between automakers and suppliers are a story as old as the automotive industry, but they proliferated during the pandemic-induced supply chain crisis when automakers were bringing in big pro ts while suppliers absorbed in ationary costs.

Parts makers have recovered some of those costs from customers with varying degrees of success. While it is atypical for OEMs to grant pricing relief without some pushback, it is unusual for a dispute to spill into litigation.

In Dan Sharkey’s nearly three decades of representing auto suppliers in disputes with OEMs, he said he has never seen an automaker act as aggressively toward parts makers as Stellantis has the past few months.

Sharkey declined to comment directly on the cases against Kamax and MacLean-Fogg because his rm Brooks Wilkins Sharkey & Turco PLLC is representing the suppliers. But he did say that the rm has never been busier, just recently adding another lawyer to keep up with the Stellantis disputes.

“ ey’re not negotiating and they’re really being brutal,” Sharkey told Crain’s. “ ey’ve taken this really hard-line policy, and everybody in Auburn Hills, the entire purchasing team, has no authority anymore. It’s just all driven by Paris,” where Stellantis is headquartered.

Dardas, who started in the industry in 1978, said he remembers the days when he could take the trip up I-75 to meet buyers in person at the Chrysler headquarters in Auburn Hills. at’s back when the business was based on relationships and not just bottom lines, he said.

“Suppliers used to be able to have a face-to-face meeting,” he said. “ at’s all gone now. We’re not dealing with people here in the United States.”

To be fair, the sourcing of supply chain management to other countries has also happened at Ford Motor Co. and General Motors Co., he said, and negotiations with those companies are no picnic.

Stellantis has consistently ranked at the bottom when it comes to supplier relations, according to the annual North American Automotive OEM-Supplier Working Relations Index Study conducted by Plante Moran. e company did, however, improve slightly in the 2023 study but still ranked last among the six largest North American automakers.

Chuck Dardas, president and CEO of tier-one supplier AlphaUSA. NIC ANTAYA

Pierre Roberson recruits students to Detroit to fall in love with architecture

Pierre Roberson got into architecture in middle school when his older brother, a Cass Tech student, would bring home some of his drawings from engineering classes. The University of Michigan and Lawrence Technological University graduate ultimately entered the eld and worked for major architecture rms like Rossetti Associates Inc. and AECOM before branching out on his own, starting Detroit-based Framework E LLC with fellow co-founder Jerry Attia last year. Roberson spoke with Crain’s about his career, projects he’s been working on and bringing more Black architects into the eld, among other topics.  By |

What have you been working on with Framework E? One project we are doing right now is the Brennan rec center, a 30,000-squarefoot recreation center on the west side of Detroit in my old neighborhood that did not have a recreation center within three or four square miles. We have a project with the Straight Gate International Church, a workforce development hub of about 90,000 square feet providing services and workforce development training for folks in the city. We have a project with the Institute for AfroUrbanism. Lauren Hood, who was the chairperson for the city Planning Commission, started an institute about Black riving across the globe. e Institute for AfroUrbanism will be the center point for the campaign she is running for Black riving. MCHS (the Methodist Children’s Home Society) is a 25,000-squarefoot renovation for one of the schools on the west side of Detroit. at’s for youth aging out of foster care. We have a great project with Detroit PAL, which owns a recreation center in southwest Detroit. ey need to get that recreation center fully online. ere is need for renovation to the mechanical system and general upgrades.

What have you learned in starting and running a business? What has been surprising?

What I have learned in doing this is that with dedication and actual focus, you can really grow. You have to be fearless with this. You can grow a practice, be successful, win great clients and great projects, but all of that really requires you to be fearless in your approach. If you’re not afraid of growing at the pace you need to grow or of taking on challenging work and tasks, you’ll be able to grow a lot faster than you think you might be able to.

What’s been your most meaningful project you’ve worked on?

If I had to pick one, it would be the Detroit PAL work we are doing. Two years ago, I started a program when I was at AECOM called the HBCU Summer Fellowship. With sheer will, myself and Jerry (Attia, Framework E co-founder) started this program that’s

actually still running at AECOM this year. We would recruit students from HBCUs across the nation, bring them to Detroit, expose them to Detroit, give them housing and give them a project they could do in the city that would be meaningful to them and also meaningful to the people of the city. e rst year of the program, we were able to partner with Detroit PAL on the recreation center we are currently doing work for them on now. We initiated that relationship through the HBCU program, having four students doing design work for Detroit PAL. at work the students did for Detroit PAL resulted in PAL being able to get funding to actually start the renovation work on the project. Although we started that two years ago, it has borne fruit in terms of giving us work at the rm we are at currently, and given PAL money to do renovation work they needed to do.

We were able to start with an idea, give four HBCU students real experience working for a client, expose those students to the city of Detroit and then PAL was able to use the funding they gained to do the work.

The latest data I’ve seen shows that something like just 2% of the more than 121,000 licensed architects in the U.S. are Black. What needs to be done to increase rep resentation in the industry?  ere needs to be active recruitment. ere is a lot of work that needs to be done in these cities. ere is a ton of work.

If you have a very intentional recruiting process, like what I created at AECOM and what I’m about to do at my smaller rm ... a lot of smaller rms think they can’t do this. If you have a very intentional recruiting process, you can.

You take a stroll through the neighborhood; nd out where these urban implementations

need to happen. en these students would be happy to come work for your rm, get the training they need, fall in love with architecture and provide something for a community

Kirk Pinho

very active way and we’ve clearly seen some success.

What are your thoughts on the future of the Renaissance Center, and what is happening with the General Motors headquarters move to the Hudson’s Detroit project? e RenCen is de nitely a relic of times past in terms of architecture and planning. I think it’s an amazing element to the skyline and an amazing de ner of the skyline, so I think it’ll be here for a long time. From a planning perspective, the interior of that building needs a complete overhaul. It’s very di cult to navigate. As an architect, as a planner now, I get a chance to look at it from a di erent perspective and I understand why it wasn’t as successful in the revitalization of Detroit as it was meant to be. With an overhaul, the interior planning could be salvageable. But it needs good architects to take a look at it. On to the Hudson’s building, I think that’s a beautiful addition to the city skyline. e way that building was designed and planned, I think it was a great choice for General Motors to move into that building as a beacon of the future of Detroit. at building really ts in with the overall context, both in the skyscraper element and the low-rise portion of it. I think it’s a great feature for the city.

When you’re not running a business and doing a lot of projects, what keeps you busy outside of the of ce? Outside of work, I’m a family man. I have two boys, one is 16 and autistic, and a 2 1/2 year old. I waited to have my second child because I wanted to wait until my oldest was mature enough to have a younger sibling. He was also diagnosed with autism. ese two boys are my reason for everything I do, and my wife. Outside of work, any time I can spend with my family, whether it’s taking my son to a basketball game or movies, whatever he wants to do that puts a smile on his face puts a smile on my face. at, and work around the

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JERON DOTSON & JUSTIN BUSH - Founders Poke Bowl, Flint, MI

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