SMALL BUSINESS SPOTLIGHT Outsourcing helps companies fill skills gap.
REAL ESTATE: Fisher Building for sale as majority owner HFZ’s fissures grow. PAGE 4
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GETTY IMAGES/ISTOCK PHOTO
CRAINSDETROIT.COM I AUGUST 30, 2021
Employers fight back on burnout BY ALLISON NICOLE SMITH
More than a year and a half into the coronavirus pandemic, another health crisis is having a moment: burnout. Burnout has been defined as an occupational hazard since the World
Health Organization officially added it to its International Classification of Diseases in 2019. The agency defines burnout as an “occupational phenomenon” that results “from chronic workplace stress that has not been successfully managed,” and it produces three effects: exhaustion, cyn-
icism about one’s job and reduced “professional efficacy.” The psychic weight of COVID-19 has caused many employees to experience a variety of factors that can lead to burnout: heavier workloads, a lack of support and resources and insecurity about one’s job performance.
A poll found 95 percent of employees surveyed said they were thinking about leaving their jobs, with most citing burnout as the reason. A separate poll from Gallup found that workers’ life evaluations have plummeted See BURNOUT on Page 19
THE PSYCHIC WEIGHT OF COVID-19 HAS CAUSED MANY EMPLOYEES TO EXPERIENCE A VARIETY OF FACTORS THAT CAN LEAD TO BURNOUT.
Rising price cuts signal home market edging toward normal BY ARIELLE KASS
It had been almost a month, and no one had put an offer on a Grosse Pointe house Rob Scalici had listed for $289,000. At the rate homes have been selling in metro Detroit — 18 days from listing to having accepted an offer — that was a sign that something was wrong, said Scalici, the owner of RE/MAX Metropolitan. The number of showings, too, had
been low — only eight in the whole time the house had been on the market. So Scalici dropped the price by more than $14,000. And the house sold almost immediately. “We did a price adjustment and we got an offer,” he said. “When we aren’t getting the activity, the last thing we’re in control of is adjusting the price.” See HOUSING on Page 18
NEWSPAPER
VOL. 37, NO. 32 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
HELPING STUDENTS SUCCEED
As students enter college lacking basic skills, new thinking emerges on how to best help them flourish. Page 12
NEED TO KNOW
PEOPLE
THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT HOMES OF DETROIT COUNCIL MEMBERS SEARCHED THE NEWS: Federal agents searched the homes of two Detroit City Council members and city offices Wednesday, just a few weeks after another councilman was charged in an alleged bribery scheme. Agents and state police were seen at the homes of Janeé Ayers and Scott Benson. FBI spokeswoman Mara Schneider acknowledged that searches were being conducted at the properties. Agents were also seen bringing boxes of documents out of City Hall Wednesday. The full scope of the investigation was unclear, but FBI agents were focused on municipal towing operations and accusations that city officials received bribes, sources told The Detroit News. WHY IT MATTERS: The searches indicate that investigators are not done with Detroit’s City Council, which has seen two other members, Gabe Leland and Andre Spivey, charged in the past year in corruption investigations. No charges have been tied to the most recent searches.
SUPREME COURT LIFTS BAN ON EVICTIONS THE NEWS: A divided U.S. Supreme Court lifted the Biden administration’s moratorium on evictions, ending protections for millions of people
WHY IT MATTERS: It’s yet another delay in the return to normal for the automaker, which joins many other employers in tapping the brakes on returns to the workplace.
DELTA TO CHARGE WORKERS WHO DON’T GET SHOTS who have fallen behind on rent payments during the COVID-19 pandemic. Siding with landlords who said they were being subjected to unwarranted hardships, the court said the moratorium exceeded the authority of the U.S. Centers for Disease Control and Prevention. WHY IT MATTERS: Evictions have been banned on a nearly continual basis since the beginning of the pandemic, leaving landlords with little recourse when rental tenants fail to pay what they owe.
FORD PUTS OFF PLANS FOR RETURN TO OFFICE THE NEWS: Ford Motor Co. told employees that it will delay return-to-office plans until early next year amid the continued rise of the coronavirus delta variant. The Dearborn-based automaker said non-site-dependent workers in most global markets can remain home until January. It had previously said those workers could return in October.
THE NEWS: Delta Air Lines Inc. will impose a $200 monthly surcharge on employees who aren’t vaccinated against COVID-19 by Nov. 1, becoming the first major U.S. company to levy a penalty to encourage workers to get protected. WHY IT MATTERS: Increasing cases of coronavirus linked to a “very aggressive” variant are driving the push for all employees to get the shots, CEO Ed Bastian said. He said about 75 percent of the company’s employees are now vaccinated.
ROCKET LOOKS TO CONNECT CUSTOMERS WITH CARS THE NEWS: Detroit-based mortgage lender Rocket Companies Inc. has officially launched its online auto retail platform that the company announced in May, called Rocket Auto. The new site contained more than 35,000 used vehicles from more than 300 dealers, the company said. WHY IT MATTERS: The push to grab auto shoppers represents another
AG Nessel opts out of Mackinac Policy Conference Attorney General Dana Nessel has decided to not attend the Detroit Regional Chamber’s Mackinac Policy Conference, citing a “dramatic” increase in new cases of COVID-19 in Michigan, her spokeswoman said. “With the dramatic increase of COVID cases, she simply decided it wasn’t worth the risk,” Nessel spokeswoman Kelly Rossman-McKinney told Crain’s last Thursday. Detroit Chamber officials said last Thursday that there is no plan to cancel its Sept. 20-23 confab at Mackinac Island’s Grand Hotel. For social distanc- Michigan Attorney General Dana ing inside the Grand Hotel, the Nessel | CONTRIBUTED PHOTO chamber has capped attendance at 1,300, down from the 1,600-plus attendees at past conferences. Nessel is not the only prominent leader to publicly opt out of the annual gathering of the state’s business, political, education and philanthropic leaders. Senate Majority Leader Mike Shirkey, R-Clarklake, has said he won’t attend the conference in an apparent protest of the chamber’s requirement that each participant prove they’ve received a COVID vaccine.
step in the diversification of the company beyond the mortgage business. CEO Victor You said the
company seeks to be among the top 10 used-vehicle sites by the end of the year.
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2 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
PEOPLE
TRANSPORTATION
Attorney working to evacuate Afghans
TEST DRIVE
Honigman’s Talerico aids those fleeing Taliban BY CHAD LIVENGOOD
Organizers of next month’s Motor Bella at M1 Concourse in Pontiac hosted a media preview of the new event in June. | DETROIT AUTO DEALERS ASSOCIATION
Motor Bella organizers plan ‘Cedar Point’-like car show in Pontiac BY KURT NAGL
“SHOWS WERE CHANGING BEFORE THE PANDEMIC. THAT ACCELERATED ADDITIONAL CHANGE.” — Rod Alberts, executive director, Detroit Auto Dealers Association
Expect Motor Bella to be more like an amusement park for cars than the stuffy showroom format that’s defined Detroit’s primary auto show for decades. The new event in Pontiac, scheduled for Sept. 21-26, is not a replacement of the North American International Auto Show, organizers are quick to point out. But it is very much a pilot for auto show 2.0 – experiential, outdoors and more than just static car displays. Test riding opportunities will be center stage during the event, spread across 87 acres at the M1 Concourse, said Rod Alberts, executive director
of the Detroit Auto Dealers Association, which produces the NAIAS and is also putting on Motor Bella. Around 450 different cars will be spread across the show’s 300,000-square-foot main footprint, half of which will be reserved for offroad vehicle test rides for attendees. The track itself will be used to whip people around in performance cars that go 0-60 mph in 3 seconds. There will also be more laid-back street rides like a car buyer would expect at a dealership. There will also be plenty of traditional tire kicking, too, with hundreds of displays, including a few dozen yet-to-be announced new launch vehicles.
Major automakers such as Ford Motor Co., General Motors Co., Toyota Motor Corp. and Stellantis NV are signed on to participate with 39 brands on display, including Jeep, Dodge, Lincoln and Audi. The final list of vendors and exhibitors has not been made public. The event is targeted at consumers, car enthusiasts and media but also being marketed as a family festival. Around 25 local food trucks are expected to be on site, and Alberts said he is working with Detroit-based The Parade Co. to develop a kids zone and other entertainment areas.
NONPROFITS
Metro Detroit nonprofits tapped to help get people vaccinated against COVID-19 BY SHERRI WELCH
Detroit nonprofits are drawing millions in government funding to do COVID-19 education, outreach and vaccinations in their communities. A total of $4.3 million in federal grants has been awarded to engage nonprofits in the efforts to get more people vaccinated. The state of Michigan has granted an additional $2.5 million to the Michigan Association of United Ways for pass through to its local affiliates around the state and ultimately, to nonprofits that have boots on the ground in communities. Funded strategies could include stipends for neighborhood canvassers, development and printing of fliers, door hangers and local radio ads, incentives to draw people to local vaccine clinics and creating community
“WE’RE STILL SEEING POCKETS IN SOUTHEAST MICHIGAN WHERE WE HAVE HIGH PERCENTAGES OF PEOPLE NOT VACCINATED, YET.” — Esperanza Cantu, director of health initiatives, Michigan Association of United Ways
events that include on-site vaccine education and clinics, MAUW President and CEO Mike Larson said. The grant will also support management and development of educational materials in multiple languages. The United Way-led effort of mobilizing nonprofits in communities is modeled on the approach the Michigan Nonprofit Association took to encourage census engagement and a similar engagement effort early this year to give underrepresented com-
munities a voice in redistricting. “Nonprofits have trusted relationships throughout communities,” Larson said. “With the level of hesitation related to the COVID vaccine, it’s important that people are getting information from people they know and trust. Empowering the organizations that are already embedded in community to provide education and access is key to the success of this model.”
See MOTOR BELLA on Page 20
A corporate law attorney at Honigman LLP in Detroit is leading an effort to help evacuate Afghans connected to a medical center in Kabul that his aunt and uncle co-founded. A GoFundMe fundraiser organized by the family of Honigman partner Mario Talerico has raised nearly $500,000 to pay for flights and resettlement costs for refugees fleeing the Tali- Talerico ban’s rule following President Joe Biden’s decision to end two decades of U.S. military presence in Afghanistan. Talerico said Wednesday that the first 100 refugees were evacuated from the country late Tuesday night on a flight out of the airport in Kabul, which remains under control of the U.S. military until the Biden administration’s Aug. 31 deadline for airlifting Americans and Afghan allies out of the country. Talerico said the refugees are Afghans who were either worked for the American Medical Center in Kabul, worked for the U.S. Department of Defense or are friends of his aunt, Anna Talerico, and uncle, James Tomecsek, who co-founded the medical clinic for American nationals in 2012. Anna Talerico, an Italian immigrant who grew up in the Detroit area, and Tomecsek sold their interest in the medical clinic a few years ago, according to her nephew. See EVACUATE on Page 20
COVID CONFUSION CONTINUES. WE’RE HERE TO HELP. COVID-19 is confusing. The fluid information about vaccine mandates, mask wearing, the delta variant and return-to-work plans are enough to make your head spin. We at Crain’s Detroit Business are here for you. Starting next month, we’re going to publish a living document that answers all your questions. We’ll chase down the utmost local experts on COVID-19 and business and relay them back you, our readers. We’ll examine the viewpoints and data and offer up as simple and straightforward of an answer as we can. The document will be updated as new information emerges. But first, we need you to submit those queries. Please send your questions to our health care reporter Dustin Walsh at dwalsh@crain.com. Thanks for reading, and we hope you’ll find what he digs up to be useful.
See VACCINATED on Page 21 AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 3
REAL ESTATE INSIDER
Fisher Building for sale as majority owner HFZ’s fissures grow Listing for iconic high-rise includes parking decks, surface lots owned by joint venture The iconic Fisher Building in Detroit is hitting the market for sale, as the downward spiral of its majority owner, HFZ Capital Group, plays out in dramatic Kirk fashion in New PINHO York City. Although in an interview, Peter Cummings, executive chairman and CEO of The Platform LLC, a minority owner of the New Center building, did not point to majority owner HFZ’s downfall as an impetus for the listing. Whatever proceeds HFZ gets from a sale certainly wouldn’t hurt the cash-strapped company, which is run by Ziel Feldman. A sale would also get more cash to The Platform for its myriad Detroit developments and redevelopments as it refocuses its efforts on neighborhoods where it has had the most success. For years, the Fisher’s ownership structure has been described as a joint venture of The Platform, HFZ and New York City-based Rheal Capital Management, which is headed by Detroit native John Rhea. For a spell, Southfield-based Redico LLC, run by Dale Watchowski, was also part of the ownership but sold off its interest, although it remains property manager. However, the precise ownership structure of the historic high-rise was not made public — until now that the building is about to hit the market, with the Chicago headquarters of brokerage house JLL contracted with the listing. It turns out HFZ owns 65 percent of the building, plus a pair of parking decks and surface parking totaling close to 2,000 spaces, which are included as part of the sale effort, according to Cummings. His company has about two-thirds of the remaining 35 percent, while Rheal Capital Management has onethird of that, he said, adding that all three companies agreed to sell the office and parking portfolio. The HFZ/Platform/Rhea/Redico joint venture bought the Fisher Building, the nearby Albert Kahn Building and the parking assets in an online auction in July 2015 for $12.2 million, a very small amount of money for the real estate it got. (The Albert Kahn Building later sold to a joint venture between Adam Lutz and Matthew Sosin for $9.5 million and the building has been converted into apartments and commercial space.) “We’ve spent close to $30 million upgrading the (Fisher) building, and now it’s not a deep value-add opportunity, but it remains a value-add opportunity,” Cummings told me in an interview last week. “There is really something for the next purchaser, the next steward of this building, to do in terms of improvements and leasing, and would enable whoever follows us to add their own tier of value. So that’s really why now. I think we’ve brought it to a point where we’ve created value, but we’re also leaving value creation on the table for the next purchaser.” Cummings said the listing is the culmination of “an evaluation of all options that played out for the last six months.” “There wasn’t dissension among 4 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
The Fisher Building is at 3011 West Grand Blvd. in Detroit’s New Center area. After more than six years, its ownership group is listing it as well as parking assets for sale. | COSTAR GROUP INC.
Cos. — which, in a Wow, Small World“THERE IS REALLY SOMETHING FOR THE connection, did a development NEXT PURCHASER, THE NEXT STEWARD OF type with HFZ several years back — on a new affordable housing effort in the THIS BUILDING, TO DO IN TERMS OF Ilitch family’s District Detroit area, as IMPROVEMENTS AND LEASING, AND well. WOULD ENABLE WHOEVER FOLLOWS US TO Meanwhile, in New York ADD THEIR OWN TIER OF VALUE. ” — Peter Cummings, executive chairman and CEO, The Platform LLC
the partners about the decision,” he said, adding that the building is close to 70 percent leased, up from less than 40 percent, and rents are $22-$23 per square foot per year, more than $5 per square foot more than when it was purchased. HFZ emailed the following statement when asked about the sale: “We are proud of the success the partnership has had in repositioning the Fisher Building. The partnership has determined that now is an opportune time to realize our investment and all the value we have created.” Cummings told me last week that his company’s revenue from the sale would be put into its other projects, largely in the New Center area and Milwaukee Junction neighborhood. Those include Chroma, the office building at 7300 Woodward Ave. and the building at 411 Piquette. “We have a lot of Detroit projects on our plate and certainly some of them need more capital, and this is a potential source, from our standpoint,” Cummings said.
Bumps in the road Cummings’ company has had its ups and downs since the Fisher Building acquisition in 2015. The Platform targeted development and redevelopment in areas outside of the downtown core, namely New Center and Milwaukee Junction to the
east, but also in northwest Detroit, the Islandview neighborhood and the area around the University of Detroit Mercy. For example, it removed structural steel from a development site in Milwaukee Junction as it re-evaluates its plan at Baltimore and John R. In the Islandview neighborhood across from Belle Isle, it torpedoed its plan to develop the corner of East Jefferson and East Grand Boulevard, and Cummings told me Monday that the site of a Big Boy restaurant that it tore down will likely also hit the market in the near future. “We think it’s a really good piece of property, but we don’t think it’s time has really yet arrived,” Cummings said. In addition, The Platform’s project in the Fitzgerald neighborhood with Detroit-based Century Partners has also faced challenges and delays. But it completed The Boulevard apartment project west of the Fisher Building, has renovated a former Wayne State University building on Cass Avenue and finished a redevelopment in northwest Detroit. Other projects include a new apartment building in Midtown with fellow Detroit-based developer Queen Lillian II LLC that’s under construction with completion slated for next year, Cummings said. Most recently, The Platform has teamed with Stephen Ross’ Related
But those ups and downs are nothing compared to the HFZ saga the last year or so. The company is facing a world of hurt in New York: liens, lawsuits from lenders and contractors and building residents, foreclosures and potential bankruptcy, layoffs, some serious mud-slinging like a lawsuit calling former managing partner Nir Meir a “faithless servant.” Then there is the debacle regarding unpaid storage unit bills that threatened the HFZ tenants’ belongings, and the foreclosure on mezzanine debt that snared a church into the whole ordeal. And The Real Deal, a New York City commercial real estate publication, noted last week that Ziel Feldman referred to Meir in a lawsuit as a “sociopath” 17 times, compared him to Bernie Madoff and other fraudsters and blamed him for the failure of HFZ’s $2 billion condo project called The XI. But if you want another sense of the chaos that’s going on in HFZ World, consider this: A Crain’s New York Business reporter was repeatedly told by Meir and representatives in July 2020 that a $100 million lien against HFZ by its contractor on The XI had been dismissed. They told the reporter they would put them in touch with a head of the contractor, Omnibuild. The reporter then received a call from a restricted number from someone claiming to be Omnibuild’s managing principal, who said the lien was discharged. Yet when
the reporter contacted Omnibuild’s president, Paul Foschi, he told the reporter that the managing partner, John Mingione, never called the reporter. The real Mingione also confirmed that, and earlier this month conducted a lengthy interview with my colleagues at CNYB, saying that HFZ had “champagne taste and beer pockets.” It was Adam Feldman, a University of Michigan alumni and Ziel Feldman’s son, and former student of longtime tenant rep broker Steve Morris, who got HFZ’s eyes trained on the Fisher Building in the first place. How it fares on the open market is anyone’s guess. Marc Nassif, senior managing director at the appraisal firm BBG, said that while there is “an appetite” for office high-rises like the Fisher Building and mixed-use developments in the city, there are several challenges to a sale. “It’s a very large asset, so a lot of local buyers would be priced out of that from a price point and complexity and the ability to own it,” he said. “You have the pandemic challenges, not knowing where the office market will rebound at. I think people were expecting a return to occupancy this fall, but that’s being pushed back. You also have the issue that New Center doesn’t command the same rents as the CBD (central business district). “But it’s a landmark building and there has been a lot of capital injected into it. It has received good ownership and would benefit from that, but you would have to have a very strong, established buyer with a comprehensive, long-term plan to maintain something that complex in a market that has some challenges to it.” Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
SPONSORED CONTENT
CARING FOR KIDS
Host Larry Burns, President and CEO, The Children’s Foundation
Advocating for homeless youth, health equity, inclusivity
Advocating for the health & wellness of children and families
About this report: On this monthly radio program, The Children’s Foundation President and CEO Larry Burns talks to community, government and business leaders about issues related to children’s health and wellness. This hour-long show typically airs at 7 p.m. the fourth Tuesday of each month on WJR 760AM. Here’s a summary of the show that aired Aug. 24; listen to the entire episode, and archived episodes, at yourchildrensfoundation.org/caring-for-kids.
Ida Benson, Director, Development & Communications, Covenant House Larry Burns: Give us an overview of Covenant House Michigan. Ida Benson: Covenant House provides youths facing homelessness and survivors of trafficking with shelter, education and vocational programs. Our doors are open 24/7, and our programs are designed to empower young people to rise and to overcome their adversity, today and in the future. The last 18 months have been extremely hard on youth who are unsheltered. It’s not just a bed, meals and clothing; it completely changes how they think about themselves. Homelessness interrupts their progress toward adulthood and a future of self-sufficiency. Burns: What are some of the causes of youth homelessness? Benson: Most of the young people on the streets do not choose to be homeless. They’re kicked out because they come out (to their families) as LGBTQ or because they’re having a mental health crisis. Mental health issues usually arise between the ages of 18 to 24. If the parent doesn’t know how to handle it, the kid is out on the streets. Burns: What are some of the things that you are seeing related to young people struggling with mental health? Benson: Approximately 60 percent of our young people who enter Covenant House Michigan are suffering from untreated mental illness. In addition, they have a co-occurring disorder, which means they’re not only having mental health issues, but substance abuse issues too. If you’re unmedicated and you’re having anxiety or you’re hearing voices, the cheapest and easiest thing to do is anything on the streets that will help you feel better. Many young people coming in need to get sober. To address this co-occurring disorder, we started a program called House of Hope. The Children’s Foundation recently gave us a grant to help continue this program. Burns: Tell us more about House of Hope. Benson: During the intake process, our residents are assessed for their physical and mental wellbeing, as well as substance abuse. If their needs are beyond our scope here, we refer them to our outside partners — Central City Integrated Health and the Salvation Army. Our staffs work together to develop a treatment plan. We identify which life skill classes are most beneficial to them, like how to manage a budget, anger management or traumainformed care. Life skills form a cornerstone of this program because they need these tools for self-sufficient, healthy living. We also offer occupational therapy to teach our young people basic living skills that they may have not had growing up--like housekeeping, cooking and how to drive a car. Burns: What’s on the horizon? Benson: We’re looking forward to having our Sleep Out: Executive Edition on Nov. 18. Participants come to our campus and experience the programs that we offer, get a chance to talk to our young people and sleep outside on our basketball court to raise funds for the organization. To find out more, visit covenanthousemi.org or sleepout.org. Lorem ipsum
Thomas Rich, MPH, Cancer Control Strategic Partnerships Manager, American Cancer Society
Mark Ralko, Founder, Executive Director, Inclusively Fit
Larry Burns: Give us an overview of your current priorities.
Mark Ralko: I’ve had this idea since high school when I started working with people with special needs. Right then and there, I knew I wanted to be in the special needs community. I went to Eastern Michigan University and got my degree in special education/cognitive impaired and adaptive physical education. My first year of teaching, a lot of my students wanted to be a part of the school sports teams. Every day after school, I would assist these kids on a one-on-one basis. So many parents wanted me to help their kids after school that I had an idea. I left teaching six years ago and opened Inclusively Fit. Inclusion is our mission; regardless of your age or abilities, everyone is welcome. Everyone deserves a chance to be fit and to be a part of the community.
Tom Rich: Our overall priority is to reduce the cancer burden, but COVID has certainly put a rush on some of those priorities. During COVID there was a big decrease in cancer screenings; clinics were experiencing other priorities and staff shortages. Right now we are focused on a return to screening. The National Cancer Institute anticipates that we’re going to have 10,000 additional deaths by 2030 because of this delay in screening. The later a cancer is diagnosed, the worse the treatment outcomes. Another priority is the Human Papillomavirus (HPV) vaccine. We’ve now connected seven different cancers with HPV. We know tobacco has a link to about 40 percent of cancers so another priority is to educate people on the use of tobacco to focus on legislation that limits where you can smoke, who can smoke, and the proliferation of vaping products, especially aimed at children. Health equity is always a big concern. We know that your ZIP code is more important than your genetic code when it comes to two diseases. We do what we can do for those social determinants of health to make sure that everybody receives the same treatment. Burns: Tell us about the Michigan Cancer Consortium. Rich: It started in 1997 with a grant from the CDC given to states and tribes to come up with a cancer plan. There are 93 organizations that make up the consortium. The Michigan Cancer Consortium has five main goals in our cancer plan for 2021: promote health equity, prevent cancer, detect cancer at its earliest stages, diagnose and treat all patients using the most effective methods and optimize quality of life for every person affected by cancer. Burns: What do you see with equity and inclusion? Rich: Physicians don’t always treat people the same, and that’s a big part of it. There is a lack of access for many, whether due to location or lack of reliable transportation. Even with the Affordable Care Act, approximately 8 percent of Michiganders have no health insurance. We know that health insurance gives people access to treatment and those insured have better treatment outcomes. Burns: What are you doing to promote early detection? Rich: People come up with all kinds of excuses. One of the things that the American Cancer Society has done, in association with other organizations, is put together focus groups to find out what messages resonate to better motivate people to get that cancer screening. Burns: Tell us about the Gold Together campaign. Rich: It’s an effort to raise money to exclusively address childhood cancers. Nobody really knows what causes them, so research, education, advocacy and program services are so important. Since 2014, we’ve raised $2.5 million. In September, we are making a big fundraising effort and we have a wonderful volunteer base. You can find out more at cancer. org/goldtogether.
Larry Burns: Tell us about Inclusively Fit.
Burns: Unfortunately, some of your clients probably wouldn’t feel comfortable at a health club. Ralko: At Inclusively Fit, our primary program is our one-onone training. Burns: What’s a typical session like? Ralko: It’s case-by-case. When a new client comes into the gym, we do a formal assessment. I take them through several exercises to see where they are physically, but also, we get to know them personally because all of our clients have different cognitive abilities. We ask the parents how they best learn so we know how to appropriately instruct and teach our clients. We have a lot of parents that stay and are included in the workouts or they can go off on their own, walk on the treadmill, do some weights, or stay in the lobby. We always give that flexibility to parents, because parents with special needs go through a lot. We want to help the entire family, including parents, siblings and even grandparents. Burns: What else are you doing? Ralko: We have a buddy workout system with two clients and one trainer to promote socialization. Hopefully they become friends. It boosts their self-esteem and self-confidence. We also do a lot of field trips. Burns: Where are you located and how many clients do you have? Ralko: We are in Sterling Heights. We just celebrated our 5-year anniversary in July. We have over 100 clients. Burns: Once you became a nonprofit, the Children’s Foundation could help you. Tell us about the grant we just made. Ralko: During the pandemic, we saw issues with depression and weight increase. We are going to use the grant to do a couple things. No. 1, we’re going to start at-home training because a lot of families are still nervous about getting out into the community, and a lot of our clients don’t have the best immune systems. We will also be able to assist in purchasing at-home equipment for them. Burns: How can people get involved?
Ralko: Call the facility at (586) 850-5004 or visit our website at www.inclusivelyfit.org.
AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 5
COMMENTARY
Swift action is needed to decarbonize our utilities
COMMENTARY
Bury the power lines? California may hold lessons
M
ichigan’s Summer of Infrastructure Woe has continued into the dog days of August. A wave of storms knocked out power Aug. 10 for about 1 million electric customers, roughly Michael one out of every 10 in the LEE state. Some waited nearly a week for restoration. And then the weather made a return engagement just last week, cutting power again for many. Michigan’s utility regulators last Wednesday said they would examine the response of DTE Energy Co. and Consumers Energy Co. to the outages. Buried in their announcement was a request for something that is perennial and predictable after big storms: a detailed study of the costs and benefits of burying the overhead power lines that tend to get taken down when the wind makes tree limbs fly. The topic is well-trod, and the answers have always been that burying the power lines won’t eliminate outages, will make it harder to restore power when it does fail, and — biggest of all — will cost a fortune, with ratepayers picking up the tab. (DTE has pegged the cost at $30 billion.) But interestingly, there are signs that power line burial, which the industry likes to call “undergrounding,” is having a moment. And a well-known name in the Michigan energy industry is taking a key role. The California utility PG&E Corp., now headed by former Consumers Energy CEO Patti Poppe, says it is strongly considering burying 10,000 miles of its lines at a cost of $15 billion to $30 billion. The reasons are different than they would be in Michigan, as PG&E has chewed through CEOs and gone through a bankruptcy because its lines have been tied to some of the massive wildfires that have plagued California, including the recent Dixie fire, the larg-
est in the state’s history. In response to the latest fires, Poppe said earlier this month that the utility would consider the “moonshot” to bury the lines in areas where they’re most likely to cause fires. It’s an ambitious project and it’s hard to find anything comparable that’s been tried on such scale. Poppe showed when she was CEO of Consumers that she was willing to look beyond conventional wisdom, putting Consumers on the leading edge of eliminating dirty coal for producing electricity. She appears to be doing that again. And maybe there are other lessons in California. As Poppe told Wall Street analysts: “The team doing our Butte County rebuild showed me on my very first day on the job that they had cracked the code on lower cost, safer and more efficient undergrounding.” It’s not yet clear whether PG&E’s project will run into insurmountable hurdles of costs and difficulty. And it will take time — Poppe said more specifics on the plan would be coming by February. But innovative projects sometimes have a way of teaching new lessons and suggesting new paths. Maybe that will happen here and it will offer evidence on situations where undergrounding is worth the expense, or maybe it will put the discussion of it to rest once and for all. Michigan’s Infrastructure Summer and California’s fire problem obviously aren’t the same, but they both tie back to climate change and how we should respond to it. We knew our electric, sewer and water systems needed modernization, but the steady stream of problems that have plagued the state and metro Detroit raise the question of whether we’re even operating with a current playbook. Projects like PG&E’s might be a rewrite of the playbook waiting to happen.
M
ichiganders can’t afford a long, drawn-out energy transition. At a recent meeting with Wayne State University students, I suggested that a sustainability program we are designing align itself with Gov. Matthew Roling Gretchen Whitmer’s is the founding pledge to make Michigan executive carbon-neutral by 2050. director of Student Senate PresiWayne State’s Office of dent Sailor Mayes Business stopped my suggestion Innovation and dead in its tracks. a graduate “I don’t think students student at the would be interested in Harvard working on a project Kennedy School based on a promise a polof Government. itician is making about something that might happen decades after she leaves office. We want to work on ideas that protect our environment today,” she said. After recent power outages across Michigan, I could not argue with her logic. Now that wind and solar are generally cheaper than fossil fuels, the only argument utilities have left to make is that renewable energy doesn’t provide service at useful times, which may lead to disruptions. The extreme weather-driven power outages punch a hole in that argument and prove now is the time for Lansing and utilities to accelerate Michigan’s energy transition. The climate crisis is the most sinister problem humanity has ever faced — it can be difficult to comprehend that we are responsible for changing the ecology of the planet. On top of that, the impacts of climate change are hard to see. Unless of course there’s raw sewage in your basement from a flood or your backyard is being ravaged by a wildfire. Now may be a good time to mention that both Consumers Energy (net zero by 2040) and DTE Energy (80 percent reduction by 2040) have made similar net-neutral pledges to the governor, and both utilities have been working to bring renewable energy sources online. Unfortunately, it’s difficult to tell how much of each provider’s current power generation comes from renewables. The good news is that across the globe, and yes, even across America, creative market-based solutions are being implemented
Michael Lee is managing editor of Crain’s Detroit Business.
Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 6 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
to help put a price on carbon. The bad news is that there are currently zero bills in the Michigan Legislature attempting to do the same. For any lawmakers seeking inspiration, I offer one modest and one creative proposal: Modest Proposal: Michigan joins the Regional Greenhouse Gas Initiative. Established in 2009, RGGI is a cooperative among 10 Northeastern and Mid-Atlantic states. Together, these states cap the carbon emissions large power plants can emit and create tradeable credits that the plants can buy and sell among each other in ways that reward faster reductions in emissions. RGGI states have seen a 45 percent drop in power generation emissions without any drop in economic growth. Pennsylvania is pending admission to RGGI in 2022, and North Carolina is currently considering it. Creative proposal: Michigan becomes the first U.S. state to enact a carbon dividend. The current estimated societal cost of emitting one ton of carbon is $50. In 2018, Michigan released 163 million tons of energy-related CO2. If the utilities were taxed at $50 per ton, we could all split $8.2 billion among ourselves and receive an annual check of about $1,100 per Michigan adult resident. If promises are kept, the tax and dividend cost would go away entirely for Consumers Energy by 2040. Taxes are usually used for collecting revenue; however, they can also be used to create economic disincentives to limit production or consumption of products that cause negative externalities (economic speak for societal ills) — like tobacco or gambling. Greenhouse gases are the mother of all negative externalities. In either scenario, your utility bill will likely go up, which would be an incentive for all Michigan parents to watch the thermostat even more vigilantly. Older readers may remember that before Newt Gingrich and Al Gore picked sides, the environment was an issue that united us — not divided us. None other than Ronald Reagan, a victim of skin cancer, pushed hard for the United States to play a key role in the 1987 Montreal Protocol. The protocol was an international treaty that taxed and regulated chlorofluorocarbons out of existence, thereby allowing the hole in our ozone layer to heal. Which begs the question: Which Lansing leader or utility company executive will have to go without power or clean up sewage in their basement in order for Sailor Mayes see a carbon-neutral Michigan prior to receiving her AARP card?
BLOOMBERG
DANIEL SAAD FOR CRAIN’S DETROIT BUSINESS
BY MATTHEW ROLING
Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.
OTHER VOICES
Stand with health care in support of COVID vaccinations BY ROSALIE TOCCO-BRADLEY
As chief clinical officer of Trinity Health Michigan’s eight hospitals, every day I’m confronted with the frustrating reality that this pandemic is not over. Dr. Rosalie My colleagues Tocco-Bradley is are exhausted chief clinical and worried, and officer of Trinity I am, too. We’re Health worried about Michigan. the patients we care for day after day. We’re worried for our children returning to school and our immunocompromised friends and family members. We see that worry magnified in our communities — parents unsure of how to best protect their children, adults navigating returning to in-person work, pregnant women wanting to do what’s best for their babies. Many are questioning what to do to put an end to the worry. For those of us in the medical community, the answer is clear: Get the vaccine. The COVID-19 vaccines continue to have mounting evidence of safety and efficacy — particularly for our most vulnerable community members. We are confident that while the Pfizer vaccine’s recent approval from the U.S. Food and Drug Administration came expeditiously, it does not come without the highest standards focused on health and safety for all. More than 163 million Americans have safely received the vaccine already. As more data has been collected, the vaccine is now firmly recom-
mended for pregnant and such as Tdap, MMR, shingles and more. breastfeeding women. Boosters are often used as protecThe delta variant is up to 60 percent more transmissible than previ- tion wanes over time, but even more so as viruses ous variants and change or muis filling our hosTHE COVID-19 VACCINES tate, which is the pitals, which is case with the delwhy medical ex- CONTINUE TO HAVE ta variant of the perts are recomSARS-CoV-2 vimending a third MOUNTING EVIDENCE OF rus (COVID-19). vaccine dose to SAFETY AND EFFICACY. Less than 1 provide additional protection and to stay ahead of percent of Michigan cases since Jan. 1 are in fully vaccinated individuals aggressive COVID-19 variants. Additional doses, or boosters, are a — evidence that these vaccines are very common and routine immuni- working incredibly well to prevent zation practice. Many safe and effec- infection. Vaccines are not a silver bullet for tive vaccines have booster doses,
stopping any disease — no vaccine is 100 percent effective. But they are the best tool in our toolbox for slowing the spread, lessening the severity of the illness if you do get sick, and protecting those in our communities who can’t be vaccinated or did not develop immunity. The medical community has been working tirelessly for more than 18 months to stop this deadly, global pandemic. And with the arrival of the COVID-19 vaccine, the responsibility to end this has shifted from medical experts alone to the population at large. I urge every business owner, education leader and Michigan resident
to stand with the medical community in support of the vaccine. Asking our workforce and students 12 years and older to get vaccinated ahead of returning to in-person programming, at a time when more than 98 percent of current cases are unvaccinated, is taking a stand in support of ending this pandemic. To not do so is to shirk our collective responsibility and is disheartening to medical professionals who, like me, know that the science behind vaccines is not a matter of opinion but an indisputable fact. Stand with us. Stand in support of the vaccine.
WHERE LEADERS CONNECT AND LEARN
CRAIN’S AWARDS
Best-Managed Nonprofit entries due Sept. 1 The deadline is near for metro Detroit nonprofits to apply for Crain’s Best-Managed Nonprofit awards. The program this year focuses on what nonprofits are doing to address diversity, equity and inclusion in their organizations. Applications are due Wednesday, Sept. 1. Finalists must appear for in-person interviews (or virtual interviews if health conditions require it) with judges the morning of Monday, Oct. 25. Applicants will be considered with similar-sized organizations. The winners will be profiled in the Dec. 6 issue, receive a “best-managed” logo from Crain’s for use in promotional material and will be recognized at Crain’s Newsmaker of the Year luncheon early next year. Applicants for the award must be a 501(c)(3) with headquarters in Wayne, Washtenaw, Oakland, Macomb or Livingston counties and meet other eligibility criteria. For information about the contest, email Sherri Welch at swelch@ crain.com. For technical questions on submitting your application, contact nominations@crain.com.
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AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 7
AN OUTSIDE JOB Jay
DAVIS
When Dr. Eran Bashan founded Hygieia Inc., named after the Greek goddess of good health, in 2008, he knew his small business was going to need some help beyond what his staff could provide. The Livonia-based business, which develops diabetes management medical devices in addition to running a medical clinic, has outsourced a variety of areas “from day one,” Bashan said. There are a lot of moving parts and specialists in several areas are needed at different frequencies. “When you talk about an attorney or an accountant, they come in when you need them,” Bashan said. “In our case, we need people with a specific set of skills to, say, input a quality management system, which is the framework that allows you to develop medical devices. To get something like that done probably takes three months. Maintaining (the device) is easier than creating it, so it doesn’t make sense to hire someone full time.”
For small businesses, outsourcing certain positions or tasks can be critical to their success. Contracting out jobs such as payroll or marketing, for example, allows the owners and managers to focus on more critical aspects of the business, while other needs are left to skilled, trained professionals without adding to permanent staff. Hygieia, which currently employs 30 people, outsources in multiple areas, including software development, quality systems, finance and marketing. Once some projects are complete, such as the development of Hygieia’s mobile app, the contracted worker may not be needed again for a few years, Bashan said. Those contract workers don’t seem to have trouble finding work, though. According to a report published in April by industry market research company IBIS World, the U.S. busi-
BRING ON THE TALENT
ness process outsourcing service market in 2020 was valued at $54.8 billion and it’s expected to increase 0.4 percent this year.
Tips for small businesses considering outsourcing jobs:
Turn to the experts Branding is important to Rizzarr founder Ashley Williams. The Detroit-based company, which has close to 6,000 freelancers who produce content that clients use on their social media platforms, websites and marketing materials to attract millennial consumers, has built quite the name for itself since it started in 2015, and Williams uses branding to help foster sustained growth. To do that, Williams, a former journalist, outsources graphic designers to produce items such as brochures that show potential clients what the company is all about. See OUTSOURCE on Page 9
Be intentional: Examine the areas within your business where you’re strong and focus your resources on those. If you don’t have time or expertise for certain projects, consider outsourcing.
“IN OUR CASE, WE NEED PEOPLE WITH A SPECIFIC SET OF SKILLS TO, SAY, INPUT A QUALITY MANAGEMENT SYSTEM...” — Dr. Eran Bashan, founder, Hygieia Inc.
READ ALL OF CRAIN’S SBS PROFILES AT CRAINSDETROIT.COM/SMALLBUSINESSSPOTLIGHT 8 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
Define the scope and schedule of your project: Outsourced vendors need accurate, complete information to present you with realistic proposals and quote a reasonable fee. Expertise costs more: Paying more for certain skills is the
tradeoff that comes with having talented people in place to handle various projects if you want the job done right. Vet candidates: Contracting with someone who knows what you don’t should be a priority. Be sure to review candidates’ previous work to make sure it meets your expectations. Consider part-time help: Weigh the costs of a contractor vs. a part-time employee because outsourced talent tends to cost more, depending on the need. SOURCE: SCOTT TROSSEN, MICHIGAN HR GROUP
LISTEN ONLINE Podcast: Michigan HR Group’s Scott Trossen on the fine points of outsourcing at crainsdetroit.com/small-business-spotlight
GETTY IMAGES/ISTOCKPHOTO
SMALL BUSINESS SPOTLIGHT
Outsourcing helps companies fill skills gap and offers flexibility
FOCUS | SMALL BUSINESS SPOTLIGHT
OUTSOURCE
From Page 8
“Since no one on our team had an extensive background in graphic design, we wanted to bring in someone with some expertise to help us,” said Williams, whose client list includes JPMorgan Chase & Co., Glassdoor, DTE Energy Co., First Independence Bank and Warby Parker. The contractors are brought in for projects that require a quick turnaround, said Williams, whose company has eight full- and part-time staffers in IT, operations, sales and editorial. Williams would not disclose Rizzarr’s revenues, simply saying the company had a “good year.”
“SINCE NO ONE ON OUR TEAM HAD AN EXTENSIVE BACKGROUND IN GRAPHIC DESIGN, WE WANTED TO BRING IN SOMEONE WITH SOME EXPERTISE TO HELP US.” — Ashley Williams, founder, Rizzarr
Not all about the money Bashan, 50, pays a contractor more than he would if they were a full-time staffer, but that prime rate is for a high level of expertise in a specific area for a short period of time, saving the business in benefits and other costs. The Hygieia founder would not fully disclose the company’s 2020 revenue, but said it’s “in the low single millions.” Michigan HR Group founder and consultant Scott Trossen said that in some cases it may be less costly for a small business to add a part-time employee for specific short-term projects, but it can be difficult. “If you’re a company and you need someone, it’s going to be hard to find someone to work part time,” he said. “There aren’t a lot of people willing to work part time for a job that pays $20-$25 an hour, especially when they may only be needed for 10 hours a week. A lot of times, the outsourced worker is going to cost more because you’re paying for a certain level of expertise. That’s why contract, outsourced employees are always in demand.”
Skills are paramount Small businesses decide to outsource for much different reasons than a large company does, according to Trossen. For example, a boutique retailer may contract out marketing to help it expand. A large business could sign a three-month deal with a social media specialist to help boost brand awareness. Many restaurants turned to delivery services as carryout orders soared during the pandemic. Trossen, who started Michigan HR Group in 2007 after more than 20 years in human resources, said small businesses need to outsource some things because they can’t replicate what that skilled contractor can do. “In consulting, we teach businesses how to perform particular tasks,” said Trossen, whose business has five professionals on staff and 30 active clients.”With outsourcing, we do it for you. You outsource because you don’t have the capacity to complete particular projects or tasks, or your staff is so small that you don’t have anyone with the knowledge to complete a task.”
Continuity can suffer Availability is also vital for companies looking to outsource jobs. Flexibility is just as important, according to the Hygieia CEO. “When you outsource, you have more flexibility,” Bashan said. “You
Rizzarr founder Ashley Williams runs a company with a staff of eight full- and part-time employees. Rizzarr, which produces content that companies use on their social media platforms, websites and marketing materials, has close to 6,000 freelancers who are outsourced to various businesses. | ASHLEY WILLIAMS
can delay projects. You don’t have that employer/employee relation and expectations, though. But you have better flexibility. Many businesses, not just Trossen small businesses, keep 10 percent of their workforce on flexible stop/start schedules based on finances.” When it comes to hiring full-time employees or contracting out work, long-term viability of the position is a major factor. “A year ago when COVID hit, we had three clinics in metro Detroit. Like every other visit-based business, we were locked down from midMarch to about mid-May. That makes it a lot harder to bring in revenue. Our expenses are fixed with people costs. The only solution is to let people go,” said Bashan, whose business laid off about 15 percent of its staff during the pandemic. Williamssaid outsourcing in certain areas gives Rizzarr the opportunity to focus on other areas. “Bringing on the outsourced staffers, it allows us to produce a greater variety in our creative work and branding so we can concentrate on creating purpose-driven content,” she said. Neither Williams nor Bashan would disclose how much their respective companies spend on outsourcing annually. Outsourcing is not without its pitfalls. Each time new contract workers come on board, they must be trained, which can take four to six weeks, according to Bashan. Areas that seem pretty straightforward can have hiccups, he said. “In some accountants we’ve worked with, we bring in competent, good people, but one contractor didn’t get the basics of the business and we ran into some issues. Fortunately they were resolved,” Bashan said.
A shortage of software engineers is hurting Hygieia and other Midwest companies as the increase in working remotely has opened more opportunity to work at places previously off-limits. “A lot of the software companies are on the West Coast. Previously, if you lived in Michigan and you wanted to work for Microsoft or Apple, it was hard. The pandemic has essentially gotten rid of those
geographic restrictions,” Bashan said. “If you’re in Michigan, you can now work for a West Coast company and earn a West Coast salary. It’s hard to hire for certain positions.” Trossen said his company hasn’t been hurt by the pandemic, though it has done less staffing and more compliance work. He declined to disclose Michigan HR Group’s rates but said 90 percent of the
firm’s work is billed hourly. “Some businesses may have changed during the pandemic,” Trossen said. “They may no longer need a full-time payroll or IT person. “Things haven’t really changed. If you have certain skills, you will always be marketable.” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
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AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 9
RETAIL
Novi-based specialty food maker mixes up recipe for growth
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Franzese USA lands deal with Dillard’s department store chain BY JAY DAVIS
After a co-branding deal with KitchenAid in 2016 helped Franzese USA Inc. get its gelato mixes into some major retailers, the Novi-based brand is striking out on its own. Franzese, launched in 2011 by Paolo and Christina Franzese, in July signed a deal with Arkansas-based Dillard’s department store chain. Dillard’s will serve as Franzese’s direct customer, as it relaunches its gelato mixes exclusively under its name without the KitchenAid brand tied to it, according to Paolo Franzese. Franzese, which produces package mixes of gelato, hot chocolate and spiced chai tea, contacted Dillard’s directly to gauge interest in a deal. The Franzese gelato mixes draw from Italian-inspired recipes and use raw ingredients produced in Italy. The mixes come in strawberry, chocolate, vanilla, pumpkin spice, salted caramel and lemon. They will be available in 50 Dillard’s locations across 15 states, according to Dillard’s corporate buyer Joseph Hunt. There are no Dillard’s stores in Michigan. A hot chocolate will be available during the fall and winter months,
Paolo Franzese
Christina Franzese
Franzese said. Its hot chocolate is already available in every Nordstrom store in the United States and Canada. Franzese USA and Nordstrom have partnered for nine years. “Having partnerships with very select corporate enterprises that are strong brands furthers our mission that ‘if Franzese makes it, it has to taste amazing,” said Franzese, whose products are also available at Nordstrom Rack, Bed, Bath and Beyond, Kroger.com, Amazon and the Franzese website. “The Dillard’s deal is something we’re really proud of.” Hunt sees the deal as a long-lasting one. “(Dillard’s) only enters into business relationships it expects to last long term,” Hunt said. “The quality of the Franzese products is reflected in the retail partners they choose. The
uniqueness of the product, the distribution, and the ease of doing business were all factors in deciding to launch the brand.” Neither Franzese nor Hunt would share the financial details of the deal. Dillard’s in 2020 reported $4.3 billion in global net sales. Privately owned Franzese would not disclose revenue. Meanwhile, the company is preparing for growth. Franzese plans to add its products to more online platforms through five other major retailers by the end of the year. And it recently moved into a 15,000-square-foot warehouse in Dallas after outgrowing a 7,500-squarefoot leased facility in Taylor. . Inventory currently takes up about 5,000 square feet of the Dallas warehouse, but Franzese expects it to be full in 1218 months. Two staffers and one supervisor currently make up the staff at the Dallas warehouse. The new larger space and some new technology will allow the company to expand its brand directly to consumers, he said. “We needed to find a platform where we could assist our high-volume wholesale accounts and also service an entire e-commerce-based di-
Novi-based Franzese USA will have its line of gelato mixes placed in 50 U.S. Dillard’s department stores. | FRANZESE USA
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REAL ESTATE rect-to-consumer business as well,” Franzese said. “We have integrated our internal network with the latest platform to make doing business, and expanding with other e-commerce platforms, much easier. The integration of our new warehouse software gives us the ability to send out orders within 24 hours of receiving them.” Franzese said the company has been fortunate to have the assistance of an informal advisory board, which has helped with short-term strategic direction and long-term planning by yielding a solid and sustainable food brand. There’s minimal inventory in Michigan for samples and product testing, Franzese said, but it’s keeping it’s headquarters here and not downsizing its Michigan operations. Sales, marketing and accounting is done out of the Novi office and Franzese is looking to add two to three employees to its four-person Michigan team over the next six to 12 months. Logistically, establishing a presence in Dallas helps the company cut shipping times to the furthest points of the country and offers better shipping options for low-volume orders. “Since we service clients in every state, we now have three- to four-day shipping time to the East Coast and West Coast, cutting down from seven days previously,” Franzese said. The company earlier this year also established a Toronto office and is working to staff that location. T:21.75"
Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
Cooper-Standard’s new HQ sells for $42 million BY KIRK PINHO
Cooper-Standard Automotive Inc.’s new Northville headquarters building has sold for $42 million to a New York City-based buyer. Northville Township public records list REIS-Northville LLC, registered to David Schostak of Livonia-based developer and landlord Schostak Bros. & Co., as the seller of the building at 40300 Traditions last month and Hamilton Northville LLC, which has a mailing address matching the Hamilton Equity Partners address on the 46th floor of 1633 Broadway in New York, as the buyer. With 110,000 square feet, the price comes in at $381.82 per square foot. CoStar Group Inc., a Washington, D.C.-based real estate information service, lists no other 50,000-squarefoot or larger office buildings that have sold for more than $380 per square foot during the COVID-19 pandemic since Jan. 1, 2020. Joseph Borenstein, portfolio manager for Hamilton Equity, a family office, said Wednesday afternoon that this is their first purchase in Southeast Michigan and that, since the building is new, there are no capital improvements planned. “It’s a gorgeous building, and we like the suburban Detroit market,” he said, adding that Hamilton Equi-
The new Cooper-Standard Automotive Inc. headquarters in Northville Township has sold for $42 million, or more than $380 per square foot. | COOPER-STANDARD AUTOMOTIVE INC.
ty has about 2 million square feet of office space under ownership, primarily in North Carolina, South Carolina and Syracuse, N.Y. Los Angeles-based brokerage house CBRE Inc. worked on the sale, Borenstein said. Chris Andrews, director of global communications for Cooper-Standard, said 570 employees are assigned to the headquarters, although most are working from home due to the COVID-19 pandemic. “This model has proven to be very successful and as a result, the company decided to transition to a hy-
brid model of remote working and shared office space,” Andrews said in an email. “While much of our workforce continues to work from home, some teams are visiting the office as needed for collaboration.” Andrews said employees moved into the new headquarters on March 16, 2020 — less than a week after the first confirmed COVID-19 cases were announced in Michigan. The materials science and manufacturing company also has its 137,000-square-foot global technology center in Livonia. Its products include rubber and plastic
sealing, fuel and brake lines, fluid transfer hoses and anti-vibration systems. It’s the second known new automotive headquarters building sale in the last several months, following the $58 million ($322.22 per square foot) sale of Magna International Inc.’s new 180,000-square-foot seating division headquarters in Novi to Norfolk, Va.-based Harbor Group International LLC by Irvine, Calif.-based IRA Capital LLC. Cooper-Standard announced its plan to build its new headquarters near Seven Mile and Haggerty roads in December 2018. It vacated its old headquarters, located at 39550 Orchard Hill Place in Novi near Eight Mile and Haggerty roads. That building is owned by an affiliate of Farmington Hills-based Friedman Real Estate. A text message seeking comment was sent to a Schostak Bros. representative last week. Crain’s reported at the time the headquarters was announced that the Michigan Strategic Fund approved a $1.3 million grant to offset the expansion costs on the project, which was anticipated to cost up to $15.3 million. The building was to house 400 employees.
Just like you, we’re here for your employees. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
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AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 11 7/9/21 12:09 PM
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DEVELOPMENTAL REFORM Why Michigan colleges should move the goalposts for remedial education. PAGE 13
COLLEGE READINESS
GRADUATION RATES Remedial reform will produce more college graduates instead of dropouts. PAGE 15
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NEW APPROACH What’s working at Michigan colleges in remedial education. PAGE 16
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Oakland University biochemistry sophomore Judah Lindsey started college early in a summer program aimed at college readiness.
ANOTHER PANDEMIC
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As students enter college lacking basic skills, new thinking emerges on helping them succeed BY LAUREN SLAGTER
Judah Lindsey’s college career started four weeks early and from his bedroom in his parents’ house in Pontiac, rather than on the manicured Rochester Hills campus of Oakland University like he’d envisioned. Lindsey, 19, was one of about 60 incoming freshmen enrolled in the Collectively Oakland Retains Everyone or CORE program in 2020, which starts with a summer bridge program where students brush up on math and writing and continues with at least four semesters’ worth of comprehensive academic support. While Lindsey prepared for his first semester of college, Oakland University was preparing for the unprecedented year ahead and trying to answer a larger question: Would the high school Class of 2020, whose senior year was cut short by the pandemic, be ready for college?
“WE'RE CONTINUING TO WORK TOWARD BEING READY FOR STUDENTS, RATHER THAN STUDENTS BEING READY FOR COLLEGE.” — Beverly Stanbrough, dean of college readiness at Oakland Community College
The summer bridge program, with its pre- and post-tests, is part of how Oakland University has tried to answer that question for previous incoming freshmen. Many colleges use placement tests in math and English to determine if students need remedial courses, which traditionally do not count for college credit but come with the same tuition price tag as credit-bearing classes. “We’re really looking to build a
12 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
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strong academic rigor for students who maybe didn’t do as well in high school and are going to need that extra support in college,” said Omar BrownEl, senior director of Oakland University’s Center for Multicultural Initiatives and head of the CORE program. The year before the pandemic, 23 percent of Michigan’s high school Class of 2019 took at least one remedial course when they enrolled in a fouryear university or community college. It’s too early to know the statewide remedial enrollment rate for the pandemic Classes of 2020 and 2021, but some colleges in Southeast Michigan reported lower remedial enrollment during the pandemic. Macomb Community College’s remedial enrollment rate fell from 32 percent in fall 2019 to 18 percent in fall 2020. Oakland Community College also had a smaller share of incoming See COLLEGES on Page 14
One-in-four first-year college students from the graduating class of 2019 were required to take a remedial course without credit because they were unprepared for college-level courses in at least one subject, state data show.
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Why colleges should move goalposts for remedial education
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lege-level English and math courses ypically, when we talk about preferably in their first term and that “moving the goalposts,” the imcolleges should use information garplication is bad — that we’re nered from placement measures, changing the criteria we’ve historically most readily high school GPA, to deused to make a decision, perhaps untermine what types and the amount of fairly. support the student will receive in In the case of developmental eduthose courses. cation reform, the “college readiness” The working group recommended goalposts have been moving for the that students with a high school GPA last decade to better match the evi- Nikki at or above 2.5 who are 10 or fewer dence emerging from rigorous studies. Edgecombe is years out of high school directly enroll That evidence shows that students senior research in gateway English and math without who enter college with some academ- scholar and extra support. ic challenges fare significantly better research Students with GPAs below the 2.5 when they are given immediate access professor at the benchmark should engage in what’s to college-level English and math Community courses. College Research called guided or directed self-placement to determine what supports are This reality is reflected in the June Center at required to improve their likelihood of 2021 developmental education reform Columbia success in the gateway course. recommendations of the working University and Researchers studying developmengroup established by the Michigan Re- principal tal education have witnessed for connect Grant Act, which offers free investigator for some time the shifting of the goalcommunity college tuition for adults the Center for posts as more colleges and systems age 25 and older. the Analysis of tried new approaches to developThe recommendations are pre- Postsecondary mental education and allowed remised on the idea that “placing stu- Readiness. searchers like me to study those efdents directly into gateway courses forts. with enhanced and integrated supBy 2009, studies visualized in stark terms how port” is a more sound approach than typical traditional developmental education course seremedial courses. quences were impeding many students’ acaThey also lay out important guidance for demic progress. practitioners and policymakers, namely, that all We learned in 2012 that placement systems students should be enrolled in introductory col-
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relying on a single placement test score were not the objective measure of college readiness many assumed they were. From these studies it became clear that many college readiness determinations were unnecessarily placing students capable of success in college classes into remediation. Though directed self-placement is a potential solution to unnecessary remediation, we need to do a lot more research on it. It’s repeatedly mentioned in the working group recommendations and is viewed as a new and more student-centered approach to placement. But we lack rigorous evidence on its impact and are only beginning to understand the full scope of implementation considerations. The working group has recommended another deliberative body be formed to provide more explicit guidance on directed self-placement. Meanwhile, the research community is beginning to assemble data on how colleges are using it and on student outcomes upon which the next working group can draw. Specifically, the Center for the Analysis of Postsecondary Readiness, a federally funded research center on developmental education, is conducting a national scan of directed self-placement policy and practices as well as interviews with practitioners, policymakers, researchers, and other higher education stakeholders. For our purposes, we define directed self-placement as the placement practices that
NIC ANTAYA/SPECIAL TO CRAIN’S DETROIT BUSINESS
There are no quick fixes Michigan has fallen behind our peers across the country and the world in preparing students for life after high school. Whether in the workplace or in higher education, even our best students rank behind the best students of other states and nations. This is a problem for both our families and our economy. And it’s not new.
Rob Fowler is CEO of Small Business Association of Michigan
Study after study has documented this problem over the past several decades. Governors and Lawmakers have recognized and offered plans and workgroups to address it. Many stakeholder groups have drawn up plans to change course. Why has nothing worked to stop the decline? Most of the efforts made to improve K-12 education since the mid 1990s have lacked both a long-term vision and comprehensiveness. There have been many attempts at silver bullets, but not the kind of transformational change that is needed – or that other states have accomplished. A comprehensive, systemic change must involve three often-competing systems: • Performance. How well does the education process prepare students for the world of work? Other states have supported researchdriven strategies for delivering consistently high-quality education to all students. • Financing. Given what we know about the cost of educating students to high standards, are there adequate resources for the task,
combine student choice with guidance from the college and its representatives (e.g., advisers and/or faculty) and have identified a few important considerations. Pathway/course clarity and communication In order for directed self-placement to be successful, college faculty and staff must reach agreement on curriculum, course, and program goals and requirements and produce materials that accurately and effectively convey this information to students. Costs Costs can be substantial and, in some cases, prohibitive. In addition to startup costs, colleges should expect ongoing costs associated with maintaining and updating directed self-placement tools and communication materials and increased staff time for faculty and advisers who engage with students during the directed self-placement process. Equity implications Implicit biases in the guidance provided to students can contribute to inequitable outcomes. Efforts should be made to ensure that the information shared with students and the language used to convey it does not reinforce stereotypes and simply recreate an unfair system for sorting students. Michigan’s community college students deserve a better, evidence-based path to college coursework and success. The recommendations of the Michigan Reconnect Grant Act working group pave the way.
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and do we allocate those resources in a way that recognizes some children are more expensive to educate than others (such as students learning English as a second language, for example)? • Accountability. This requires a fair and comprehensive system that expects everyone who influences education to be accountable to students, parents and taxpayers. This has manifest into three overly simplistic schools of thought about education policy. There are those who say, “We can’t produce the outcomes you want with the resources we have” and take the position that unless and until more dollars are appropriated nothing can improve. There are others who ask, “Why would we add another penny into a system that is producing these results?” and expect to see the system change before supporting the allocation of any more resources. And there are still others who say, “Let’s just put our education system on a public grading scale and hold everyone accountable for their part, and if they can’t perform, we should replace them.” I must admit, I understand all three perspectives. What Michigan needs is a serious conversation about how performance, resources and accountability all come together to improve achievement for all students. What we need is a near total transformation of our systems to
improve educational outcomes and compete with the best in the world at aligning skills and talents for the coming workplace. We need to recognize that this will not be accomplished in one legislative session or by one Governor or Superintendent of Public Instruction. We need a long-term and comprehensive plan. Fortunately, there is a group of stakeholder organizations from education, business, philanthropy and community that have convened a conversation about improving the systems mentioned. It is called Launch Michigan (find out more at launchmichigan.org). I have been fortunate to have been a part of this group since it was created over three years ago. I am optimistic that we can get beyond our traditional disagreements and devise a plan to make Michigan a leader in educational outcomes. We must. And we will need to count on policymakers now and in the future to have the courage to see it through.
ed AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 13
Starting college behind
COLLEGES
This chart shows percentages of incoming students who needed remedial courses by school type, the metro Detroit region and individual schools contacted by Crain’s for this report.
From Page 12
students in remedial courses, 16.7 percent in fall 2019 compared to 14.2 percent in fall 2020. Oakland University enrolled 26 percent of its incoming freshmen in a remedial math course in the fall of 2020, which is up from the fall of 2019 and in line with the university’s remedial enrollment rate from previous years. The enrollment rate for Wayne State University’s remedial math course dropped slightly from 7.7 percent of first-time students in the fall of 2019 to 7.2 percent in 2020. However, the change in remedial enrollment may tell us less about the college readiness of the Class of 2020 and more about the reinvention of remedial education that’s currently underway at Michigan colleges. The results of this experiment hold implications for the wave of nontraditional college students — pandemic frontline workers and adults age 25 and older — who will take advantage of Michigan’s new free community college tuition programs. “We’re looking to be ready for any type of student as a community college,” said Beverly Stanbrough, dean of college readiness at Oakland Community College. “We’re continuing to work toward being ready for students, rather than students being ready for college.”
The pitfalls of remedial courses Remedial courses aim to help students master the skills they need to succeed in college-level courses — skills they should have learned in high school. But a growing body of research raises questions about the effectiveness of traditional remedial education and the reliability of placement tests. Studies suggest remedial education can discourage students from completing their degrees, especially students who are close to the threshold for placement in college-level courses. Requiring students to take remedial courses as prerequisites to college-level courses adds time and expense to their degrees. Placing students in remedial courses because they score below a certain cutoff on a standardized placement test contributes to over-enrollment in the lower-level courses, and there’s evidence a substantial number of students in remedial courses could have passed college-level courses with a B or better. “I think the biggest takeaway that one can derive from the research is that it is more helpful to try to support students who do need additional academic and non-academic support at the college level, as opposed to placing them into core prerequisite courses,” said Nikki Edgecombe, senior research scholar at Columbia University’s Community College Research Center. This issue is more prevalent at community colleges (where 17.5 percent of incoming students in the Class of 2019 took at least one remedial course) than four-year colleges and universities (where 5.6 percent of incoming students in the Class of 2019 enrolled in a remedial course), according to statewide data from the Center for Educational Performance and Information.
Fall 2018
Fall 2019
Fall 2020
Statewide total (all universities and community colleges combined) 24% 23.1% Fall 2020 data not available Statewide community colleges only 17.6% 17.5% Fall 2020 data not available Statewide 4-year colleges and universities only 6.4% 5.6% Fall 2020 data not available Wayne State University public health junior Maryam Shah took part in Wayne State’s APEX program that aims to support promising students who don’t meet the university’s traditional admission requirements. | NIC ANTAYA/SPECIAL TO CRAIN’S DETROIT BUSINESS
Innovation spurred by the pandemic Prior to the pandemic, community colleges and universities in Southeast Michigan were exploring alternative approaches to remedial education, like using multiple measures to predict whether a student is ready for college-level courses instead of a single test score and offering “module” math programs that allow students to practice a specific skill, rather than take a semester-long remedial course that covers some skills they have already mastered. In addition to its remedial math course, Wayne State University offers an introductory English course, which still counts for college credit; after changing its English placement process going into the 2020-21 academic year, the enrollment rate for introductory English dropped from 19.1 percent in 2019 to 11.9 percent, according to the university. Since 2012, WSU has offered an alternative admissions program called Academic Pathways to Excellence or APEX for students who show academic promise but do not meet the university’s standard admissions requirements. Similar to Oakland University’s CORE program, APEX at WSU offers a summer bridge program for around 130 students each year, plus at least three semesters of comprehensive academic support. “It’s easy to think that we have two groups of students: those who need bridge programs and summer supports, and those who don’t need that at all,” said Monica Brockmeyer, senior associate provost for student success at Wayne State. “And I think we’re seeing the impact (of the pandemic) to be so pervasive that pretty much every student might benefit from a more intensive level of support or more granular supports that are specific to their academic needs.” Innovations in developmental education unfolded quickly during the pandemic, and the state’s new Michigan Reconnect Grant that offers free community college tuition to adults age 25 and older will help ensure some of the changes stick by mandating that students spend less time in remedial courses. The Reconnect program has been backed by business groups such as the Detroit Regional Chamber and
14 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
Small Business Association of Michigan as a way to get workers retrained for in-demand career fields. Alternative approaches to developmental education often are more labor-intensive for colleges, which is why some institutions have been slower to adapt. More comprehensive academic support services require additional staff, and faculty may need different credentials to teach corequisite courses, where students simultaneously take a remedial course and an introductory, credit-bearing course. “The pandemic really kind of pushed the agenda into this more progressive approach to developmental education,” said Donald Ritzenhein, provost and vice president for the Learning Unit at Macomb Community College. “We’re just now emerging from that experience, and we’ll spend the fall trying to determine how well we did. … We don’t know how the students did here at Macomb, but what we do know is, based on nationwide studies and other research, they should do very well.”
‘You’re in this because you failed’ For some students, “enhanced” courses with mandatory tutoring, selfpaced modules to develop math skills and summer bridge programs don’t feel very different from traditional remedial courses; the students know they need to build up their academic skills in order to be successful in college. “I’d never heard of something like (APEX) before, and I didn’t know if it was like, ‘OK, you’re in this because you failed,’” said Damon Creighton Jr., who enrolled at Wayne State through its alternative admissions program. “But once I got in and they kind of explained what this all meant and what it all involved, the excitement came right back.” Creighton was diagnosed with epilepsy while attending Wyandotte’s Roosevelt High School, and his grades slipped due to his physical and mental health challenges. He always assumed he would go to college, like generations of his family members had, and Wayne State’s APEX program ended up being his only option. Now entering his fifth year at Wayne State, Creighton, 22, credits APEX for
giving him the skills to pass his classes and the confidence to complete his degree in social work this spring. He recommended other universities create a math pathway like Wayne State’s, which gives students the option to take math workshops in addition to the lectures where they can work closely with instructors and other support staff. “I did that all the way up to pre-calculus (from remedial beginning algebra). I wasn’t super strong in math in high school, and now I tutor for the APEX program and I’ve been a peer mentor for the summer program since the year after I joined,” Creighton said. For Lindsey, Oakland University’s summer bridge program was an invaluable preview of college classes, from the material covered to the workload, expectations, and even the virtual environment due to the pandemic that would continue through his “first freshman year” of college. After earning mostly As and Bs in his courses last year, which included two remedial math classes, Lindsey is looking forward to his “second freshman year” this fall, when he’ll take his first on-campus classes. “I (was) not accustomed to having to be able to work at a fast pace. … I didn’t know college was going to be like that,” said Lindsey, who graduated from Pontiac Academy of Excellence after being homeschooled for 10th and 11th grade while his family lived in Africa. “It’s so much, but the CORE program is going to prepare you for all that.” Maryam Shah, who enrolled at Wayne State through APEX, said she appreciates the alternative admissions pathway and the opportunity to develop her math skills through a module and work on fundamental writing skills during the summer bridge program. Shah, 19, said she was “just trying to have fun” her first few years at Harrison High School in Farmington Hills, but then she realized she needed to improve her grades if she wanted to go to college. Her parents, who moved to the U.S. from Pakistan, dreamed of her attending college because they hadn’t had the opportunity, and Shah said she realized it was her dream too. Now Shah is entering her third year at WSU majoring in public health with plans to become a physician assistant, and she is a peer mentor and tutor with APEX. She urged the pan-
Detroit Metro Area total (any college) 25.8% 25.1% Fall 2020 data not available Oakland University (remedial math for fall semester) 26% 22% 26% Oakland Community College (at least one remedial course in fall semester) Fall 2018 data not available 16.7% 14.2% Macomb Community College (at least one remedial course in first/fall semester) 25% 32% 18% Wayne State University (remedial math) Fall 2018 data not available 7.7% 7.2% NOTE: State data on remedial education rates among students in the high school graduating class of 2020 is not yet available. SOURCES: Center for Educational Performance and Information; Oakland University, Oakland Community College; Macomb Community College and Wayne State University. Crain’s Detroit Business graphic
demic high school graduates to believe in themselves and fight through online burnout. “I know now everything is online, and it’s so tiring to get all these emails and text messages. I know they don’t want to look at their phones and always respond,” she said. “But it is important to just check in and keep up to date, because if you don’t, you’re more likely to end up not understanding the material and not understanding what’s going on.” Brockmeyer, the associate provost at Wayne State, said there is still a lot to learn about how the pandemic has impacted recent high school graduates and current college students. “This was such a big setback in what students were actually learning, and assessing what students are learning in high school or in college is much more difficult during the crisis,” she said. “As students move into their subsequent courses or we see other things emerge during their pathway through college, there’ll be a lot more to learn about what they learned.”
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COMMENTARY
Remedial education reform will produce more graduates
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was laudable — to ensure that students or years, community colleges in had the basic skills to succeed in Michigan prided ourselves on post-secondary education. attracting large numbers of peoHowever, the process was not workple to our programs. These included ing and often was counterproductive. students fresh out of high school but In many of our institutions, there were also significant numbers of adults remultiple levels of developmental eduturning to college. cation that trapped students into a We touted our job-relevant proseemingly never-ending set of courses grams, our faculty focused on teaching, before they ever earned a credit hour. and our accessible learning, with pro- Jim Jacobs is Frustrated, they often dropped out. grams and courses provided at all times president This was not just a Michigan issue: of the day, weekends, or online. The emeritus of As our work at the Community College 2008 Great Recession marked a high Macomb Research Center has indicated, reform point in our enrollments as many Mich- Community of developmental education is an imigan residents sought postsecondary College and a education as a means of finding work. research affiliate portant problem facing all community colleges that are emphasizing student However, a little over 15 years ago, we at the success. began to shift our emphasis from access Community In Michigan, with the aid of the to success. Far too many of our students College Research Michigan Center for Student Success, were not completing programs, and Center at many of us experimented with changes many were dropping out without col- Teachers to developmental education, often College, lege credit. through institutional workarounds, but We began to focus not on how many Columbia there was no statewide attention to repeople we attracted to our institutions, University. forming developmental education. but whether they completed their proThat has now been rectified with the grams and successfully continued on to recent passage, with bipartisan support, of Micha career or an additional degree at a four-year inigan Reconnect. In this statewide initiative, Michstitution. igan adults are given free tuition for programs in Examining our internal processes, we realized high-demand occupations at community colthat many of our students, particularly adults, leges. were forced to take developmental education or It also has created an opportunity to restrucpre-college classes before attending the proture our efforts around preparing adults for grams they wanted to attend. post-secondary education. The goal of these developmental programs
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Michigan community colleges will not only inMichigan Reconnect created a committee of crease opportunities for many adults who are livcommunity college presidents, employers, busiing near the poverty level but also provide Michiness organizations, researchers, and policy exgan employers with the skilled people they will perts to develop a new approach to developmenneed for the Michigan economy to advance. tal education. They recommended pairing Finally, looking to the future, there may be an college-level courses with remedial courses in important hidden benefit in the corequisite apsomething known as a “corequisite” model. proach advocated by Michigan community colIn other words, students who need to improve lege leaders. their post-secondary English and math skills take It is increasingly clear that many of the specific a college-level class and a remedial class simultaskills workers need can only be learned on the neously. job. No educational institution can teach the Instead of preventing students from attending business strategies of an individual company, the classes because they are “not ready,” corequisite specific way a technology will be utilized on the remediation challenges them to apply what they job, or how a firm organizes its work. learn in the developmental course to succeed in The purpose of education is to prepare stutheir college-level course. Several community dents for opportunities at the workplace and put colleges in other states have used this practice them into a position to be effective learners on with impressive results. the job. The skills necessary for effective on-theThe adoption of a corequisite model is particujob learning are communications, reading, worklarly relevant to the workforce issues we face in Michigan. Almost 40 percent of Michigan residents fall below the ALICE (Asset IT IS INCREASINGLY CLEAR THAT MANY OF Limited Income Constrained Em- THE SPECIFIC SKILLS WORKERS NEED CAN ployed) standard — which is the income needed by a family to sustain ONLY BE LEARNED ON THE JOB. their basic needs. Many of these indiing in teams, and collaboration with individuals viduals lack any postsecondary experience. from diverse backgrounds — the very essence of However, Michigan employers are forecasting what are called “soft skills.” the addition of 500,000 skilled jobs over the next These will be reinforced in the developmental five years that require some post-secondary edueducation strategies now being introduced — so cation. in a sense, Michigan Reconnect will double down By both making community college tuion its impact upon Michigan’s economic future. tion-free and introducing corequisite education,
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What’s working at colleges in remedial education New methods help teach soft skills too BY LAUREN SLAGTER
The pandemic has forced community colleges and universities to rethink their approach to remedial education, as they’re unable to rely on the usual in-person placement tests and students’ needs have changed in the new virtual learning environment. There are three general stages to students’ progression to complete their degrees: screening to determine incoming students’ academic proficiency, ability to successfully pass individual courses, and ability to successfully fulfill degree requirements. Here’s a look at how higher education institutions in Southeast Michigan are innovating in their approach to developmental education at each stage and what the research tells us should work.
Screening In the past, colleges used standardized placement tests from ACT Inc. or The College Board to gauge incoming students’ academic proficiency. Students who scored below a certain cutoff had to take a remedial course before they could enroll in the college-level course. The cut score approach is straightforward, efficient — and not an especially accurate way to predict students’ ability to pass a college-level course. “Testing companies have done a phenomenal job marketing themselves as valuable tools in the achievement and placement process,” said Nikki Edgecombe, senior research scholar and research professor at Columbia University’s Community College Research Center. “We had done research dating back to 2011 that indicated that high school GPA is actually a quite effective means to place students.” High school GPA can be one of multiple measures colleges use to assess students’ ability to pass a college-level course, which research shows is more reliable than cut scores. Other measures can include ACT or SAT score, student interviews, and pre- and post-tests at a summer bridge program. Macomb Community College switched from placement tests for math and English to multiple-measure assessments and saw its remedial enrollment rate nearly cut in half, from 32 percent in fall 2019 to 18 percent in fall 2020. “Self-reported grade point average has been demonstrated to be a very accurate predictor of how well students will do. But of course you have to decide what those grade point average (cutoffs) are going to be,” said Donald Ritzenhein, provost and vice president of the Learning Unit at MCC. “If for some reason this student didn’t have (their GPA), we might look at an SAT score. And the third (measure) is to talk to students and just have them reflect. We tell them what these courses are like and have them work with a counselor to determine where they think they should start.” The concept of talking students
Wayne State University experimented with “self-guided selection” for English courses during the pandemic. | PHOTOS BY NIC ANTAYA/SPECIAL TO CRAIN’S DETROIT BUSINESS
learning … and students really wanted to speak to someone,” said Stanbrough. OCC has required counseling for new students and offered online tutoring for at least four years. Summer bridge programs also help ensure students are prepared to pass their first college courses. Wayne State and Oakland University offer such programs that give incoming freshmen an early introduction to campus life and the rigors of college, while helping them brush up on core academic skills.
Degree completion
Oakland University’s summer program to help students students prepare for their first semester of college is part of a program called Collectively Oakland Retains Everyone.
through the demands of a course and letting them decide if they’re ready is also called self-guided selection. Oakland Community College and Wayne State University experimented with self-guided selection for English courses during the pandemic. That approach required extra work from faculty to define the demands of their courses, said Beverly Stanbrough, dean of college readiness at OCC. As Wayne State transitioned to self-guided course selection, the enrollment rate for its introductory English course — which is not considered remedial because it counts for college credit — dropped from 19.1% in 2019 to 11.9% in 2020 for students enrolling in college for the first time. Another way to intervene in determining where students begin their
16 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
college careers is through an alternative admissions pathway for students who show academic promise but do not meet the university’s standard admissions criteria, like Wayne State’s Academic Pathways to Excellence or APEX program.
Course completion Colleges have long offered myriad academic supports like advising, tutoring, mentoring, career guidance, and workshops to help students develop skills like time management, study habits, and financial aid planning. During the pandemic, that all had to happen virtually. “Last year’s students really wanted that personalized touch. A lot of students didn’t do well in their online
erated remedial courses can present challenges for colleges in finding faculty with the right credentials to teach the hybrid courses, said Edgecombe, the researcher at Columbia University. Modules — especially in math, through the ALEKS adaptive learning program — also are gaining popularity. Modules allow students to re-learn and practice specific skills at their own pace. All of these approaches have a common goal: to reduce the amount of time it takes students to complete their degrees. The new Michigan Reconnect Grant requires community colleges to adopt at least some of these measures by January 2022.
Beyond passing individual courses, students need to successfully fulfill degree requirements to graduate. Remedial courses can delay that process if “LAST YEAR’S STUDENTS REALLY students are required to spend a semester or WANTED THAT PERSONALIZED TOUCH. two taking develop- A LOT OF STUDENTS DIDN’T DO WELL mental courses that do not count for col- IN THEIR ONLINE LEARNING … AND lege credit but have a STUDENTS REALLY WANTED TO SPEAK cost in money and TO SOMEONE.” time. A corequisite mod- — Beverly Stanbrough, dean of el allows students to college readiness at OCC simultaneously enroll “A lot of reforms try to accelerate in a remedial course and an introductory, credit-bearing course in the students’ progress and streamline,” same subject. Accelerated versions of Edgecombe said. “In places like Michremedial courses let students com- igan and other states and systems, plete the remedial material and the (the reforms are) really around, ‘How credit-bearing course in the same se- do you provide supports at the college level most effectively?’ That sort of mester. OCC is launching corequisite class- changes the placement discussion es in the coming academic year, and from, ‘Are you college ready?’ to ‘What MCC will offer accelerated remedial supports do you need at the college math courses. Corequisites and accel- level to help you be successful?’ ”
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More and more, sellers who had been riding a wave of rising prices are being pulled back to reality as the market cools. They’re bringing listing prices down with them. Though sales prices are still high, the unbounded ability to name one’s price — and get it — has dissipated. The number of homes on the market with price cuts is increasing. In Detroit, nearly a quarter of all homes on the market in July had a price reduction, according to data from Redfin, a Seattle-based real estate brokerage with agents in Detroit. That’s up from 15.4 percent in May and 19.1 percent in June. Nationally, the rate of price cuts is also rising, though more slowly. July saw 12 percent of homes nationally experience a price reduction, up from 7.5 percent in May. And homes are sitting on the market for less time, too, before their prices are cut. This July, the median number of days before a price reduction was 26 in Detroit as well as in the rest of the country. That compares to 2019, when it took 34 days in Detroit
whatever you list it for,” she and 46 days nationally. said. “It’s a good thing to “The reason we’re seeing have a little bit more stabiliprice drops is the market is ty.” reaching equilibrium,” said Loehr recommended Daryl Fairweather, Redfin’s one client list her Royal Oak chief economist. “Sellers condo for $350,000, but the are always behind the owner insisted on a curve.” $360,000 asking price. After Fairweather said homenine days without an offer, owners look to comparable Fairweather the price was reduced by sales in recent months to price their houses when they put $15,000. Then, Loehr said, there were them on the market. As sales prices a handful of showings and an offer have risen, sellers assumed that they came through. Part of the reason the reduction could keep asking for more. Eventually, though, buyers aren’t willing or worked, she said, is that bringing the aren’t able to purchase at increasing- price below $350,000 made the condo more visible to buyers whose ly higher prices. “It’s a really promising sign for the search parameters didn’t include the health of the housing market,” Fair- higher value. Increased visibility is weather said. “If home values go up one reason to recommend a reductoo long, people treat them like a tion, she said. Scalici, with RE/MAX Metropolispeculative asset. That’s when bubtan, said other reasons for price rebles form.” Anne Loehr, a senior listing spe- ductions have included flooding iscialist with Redfin, said the shift in sues that have plagued some the market happened quickly. For communities and buyers’ issues getmuch of the year, she said, many ting financing as prices have skyrockhomes “sold much higher than they eted. He also reduced the price on a Marysville house that had been sitprobably should have.” “All you heard last year is kind of, ting for close to a month, and the name your price, you’re going to get $10,000 reduction, to $249,9000, was
what the property needed to sell. “People went a little aggressive in pricing,” said Jeanette Schneider, president of RE/MAX of Southeastern Michigan. “Sellers are having to adjust.” Often, it’s the real estate agent who has to talk a seller into taking a hit to their expectations. But in Realtor Mahmoud Gasama’s case, it was the seller who insisted her Waterford house be advertised for nearly
moved out of the house. She just wanted out. Reluctantly, he agreed. But she wanted to reduce the price in $5,000 increments. Gasama said it would be more beneficial if the drop looked “dramatic.” “$10,000 will get someone’s attention,” he said. While Gasama may have been right that the home would eventually sell again regardless of whether the price had dropped or not, Fairweather said more and “IT’S A REALLY PROMISING SIGN people are getting FOR THE HEALTH OF THE HOUSING more, anxious as time passes because of how quickly housMARKET.” es are leaving the market. — Daryl Fairweather, Redfin’s chief economist Homes are still selling for 101.3 percent of asking $10,000 less than it was originally list- price in Detroit, as compared to 97 percent of asking price before the ed it for. The seller had multiple offers pandemic. But Fairweather said once when the house was first listed for al- a home’s sales price is reduced, it most $230,000, Gasama said, but rarely goes for above asking. “People would rather do a price chose an offer that included a contingency — the buyer’s home had to sell drop than have a home sit on the in order for the purchase to close. market,” she said. “People want their When that sale fell through, Gasama, homes to sell quickly.” with Realty Executives, suggested the seller start over. But she had already Contact: arielle.kass@crain.com; held an estate sale, he said, and (313) 446-6774; @ArielleKassCDB
PEOPLE
PEOPLE ON THE MOVE
Advertising Section
To place your listing, visit www.crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com ACCOUNTING
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RSM US
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RSM US
Jerry Dolak has joined RSM US LLP as a Principal in the Consulting Practice. Aligned with the Detroit office, Jerry manages the ServiceNow line of business for the United States. RSM’s ServiceNow practice supports clients across all industries, delivering the full ServiceNow platform solution. Jerry has extensive experience with management consulting, business development, product development, client engagement, pursuit evaluation, project execution/delivery.
We are pleased to announce Louis Hill Jr. has been promoted to Assurance Manager. Louis works in the industrial products services practice, serving both public and private companies. He has approx. 4.5 years of experience in public accounting and 1 year of government audit. Louis has led several engagements and ensures all reports issued exhibit excellent audit quality. His approach to solving complex accounting issues, client interactions, and responsiveness make him a trusted point of contact.
RSM is pleased to announce Rob Kaschalk’s promotion to Business Tax Manager. He has over 6 years providing tax and consulting services to a variety of public and private sector entities. HIs primary focus centers around real estate and manufacturing sectors. In addition to consulting on client matters, Rob serves as a key contributor in expanding the firm’s expertise in blockchain and the implementation of new technologies which allow him to focus on new and existing client growth in middle market.
ACCOUNTING
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We are pleased to announce that Jason Miller has been promoted to Tax Senior Manager. He has approximately eight years of experience in public accounting providing professional services and business advice to a diversified base of clientele. Jason specializes in consumer and industrial products and is aligned with the tax practice in Detroit. Clients include primarily private equity owned portfolio companies with a focus on manufacturing.
RSM is pleased to announce Michael Pruitt has been promoted to the position of Transfer Pricing Manager. His experience includes six years with the firm, focusing on providing transfer pricing and international tax consulting services to both publicly and privately held businesses. Michael specializes in providing these services to clients in the global automotive, industrial products, and consumer products industries across the Great Lakes region.
RSM is pleased to announce Sharif Tai has been promoted to Director on the Transaction Advisory Services team. He has eighteen years of professional experience and has led more than 200 diligence transactions for private equity and corporate clients. Sharif specializes in business and consumer software products, healthcare, and financial services, as well as custom application assessments with an emphasis on scalability, maintainability, and development process gaps.
18 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
Duggan hires state House Republicans' attorney as adviser and counsel Hassan Beydoun, 34, will start Sept. 20 in the second-term Democrat’s administration BY ANNALISE FRANK
doun was "instrumental" in that ultimately successful fight to reDetroit Mayor Mike Duggan form auto insurance, Duggan's has brought on a new adviser office said in Tuesday's news refrom the legal counsel team for lease. While with the House, Beydoun the Republican-led state House of worked on issues related to DeRepresentatives. Hassan Beydoun, 34, will start troit's bankruptcy, including legSept. 20 in the second-term Demo- islation creating the commission crat's administration as senior ad- that oversaw Detroit's finances viser and counsel for the mayor, until 2018. “First and foremost, I want to according to a news release from help ensure that the significant Duggan's office. Beydoun replaces Eli Savit, who progress that the City has made in November was elected Washt- under Mayor Duggan continues, enaw County prosecutor and be- and that starts with an accurate gan that post in January. Beydoun census count," Beydoun said in will be advocating in Lansing for the release. "I'd also like to address policy obstacles like car the city of Detroit, as well insurance costs and as guiding the mayor — criminal records to help who is seeking a third more Detroiters improve term — on various issues. their financial situation. His annual salary will be As the son of an immi$140,000. In the Michigan House grant that called Detroit of Representatives, Beyhome, I know many of these obstacles firstdoun, a native of Dehand ..." troit's Warrendale neighThe city plans to chalborhood, is being Beydoun replaced by Senior Depulenge its 2020 Census ty Legal Counsel Aaron Van Lan- count, which shows a 10.5 percent gevelde. population decline, and that could Beydoun's position was nonpar- include litigation. tisan, but he reported to RepubliBeydoun is a member of the can House speakers throughout Michigan Human Trafficking his tenure for the last eight years. Commission. He has a bachelor's He became top attorney for the degree in philosophy from Wayne House Republicans in 2016. State University and attended the Duggan, the mayor of an over- University of Iowa College of Law. whelmingly Democrat-voting city, Prior to working for the state has long garnered support from House of Representatives, Beywealthy business owners and Re- doun was an attorney with Wayne publicans, including in West Mich- County Prosecutor Kym Worthy. igan. He recently got GOP support for his battle against the state's no- Contact: afrank@crain.com; fault car insurance system. Bey- (313) 446-0416; @annalise_frank
BURNOUT
From Page 1
during the pandemic, with 61 percent of women and 52 percent of men reporting they felt more stressed than before. For most employers, preventing and coping with burnout is just good business sense, as neglecting to do so can lead to lower productivity, higher turnover and other factors that can hurt a company’s profitability. “You can’t put a price tag on that,” said Michelle Gilbert, vice president of public relations at Philadelphia-based Comcast Cable, which has around 4,000 employees in Michigan. “Well, actually, you can, and it’s very expensive to lose employees.” But if burnout is a workplace-centric problem, some employers are realizing the onus is on them to provide solutions. From companywide holidays and increased paid time off to child care and mental health services, employers in and around Detroit are addressing burnout in a systemic way by making changes to the work environment.
Employers like Rocket Companies, pictured here, are taking steps to ease worker burnout. | ROCKET COMPANIES
from one-on-one interviews between employees to cooking demonstrations. “We try to support every scenario Wellness initiatives holistically with a slew of different Many employers have expanded programs because not one solution is mental health and wellness services going to be for everyone,” said Beattie. since the pandemic hit. Honest communication between Detroit-based Rocket Mortgage rolled out a virtual program that edu- higher-ups and employees is also imcates employees on how to identify portant, said multiple companies and respond to signs of mental ill- surveyed by Crain’s for its annual ness, including burnout, through in- Cool Places to Work report, such as teractive Q&A sessions, role-playing team member assistance programs, and training modules. Rocket also which virtually connect employees and their dependents to pivoted from onsite medithird-party mental health tation to virtual sessions, and counseling experts — using the wellness app all confidential and on the Journey, while increasing company’s dime. the number of sessions and According to the Cool types of meditation in the Places to work survey, some process. firms ramped up their When it comes to manwell-being initiatives and aging stress at AccumTech, found creative ways to supa technology company in port for workers juggling Ann Arbor, Andrew Ma- Madonna virtual schooling or new donna, vice president, and caregiving responsibilities Jennifer Beattie, the emduring the pandemic. ployee engagement manSeveral companies, inager, have emphasized fitcluding AccumTech and ness and engaging Environmental Consulting employees in fun activities. and Technology or ECT, an In addition to buying its environmental solutions roughly 35 employees Fitfirm headquartered in bits last year, AccumTech Gainesville, Fla., that has partnered with Wellable, an offices in Detroit and Ann app that crafts various well- Beattie Arbor, conduct regular ness challenges on everycheck-ins and anonymous thing from nutrition to fisurveys where workers can nancial health. This means feel comfortable to voice workers are being paid to their concerns without fear prioritize their health and of backlash. well-being in the work“One significant thing for place. us is starting with ground“I didn’t want to just foup feedback and data,” said cus on steps,” said Beattie. Keleigh Williams, ECT’s “We needed to focus on chief corporate officer. those different aspects of McNeil “When an employee knows wellness that are not just that the leadership has conexercise, that really take sidered their thoughts, into account mental health, looked at the trend lines as well.” and built a plan with them To help employees stay in mind — boy, does it go a engaged, AccumTech delong way.” vised “Quarantine OlymAne McNeil, chief hupics,” which split employman resource officer and ees into teams to compete senior vice president of Liin different wellness-relatvonia-based nonprofit ed games — an event both Livingston Trinity Health Michigan Madonna and Beattie said the company plans to continue in the and Trinity’s southeast regions, points out that the pandemic did not post-pandemic future. AccumTech’s creativity doesn’t create burnout, but exacerbated it. stop there. To combat the doom- This is especially true in certain inand-gloom news cycle, the staff dustries where the stakes are already broadcasts their own “positive” high, such as health care. “In my 16 years of working in newscasts every Wednesday, featuring video segments with everything health care, there’s always been an
element of burnout amongst frontline workers,” said McNeil. “In the past, a health care worker may have had a really high element of fatigue, but now, with the pandemic, there’s just this constant burning the candle at every end.” To support its workforce of more than 22,500, Trinity Health Michigan put together a group of “resiliency rounders,” colleagues who provide “real-time human connection” to other employees, either virtually or in person, especially those who work in particularly demanding areas of
are taking time off en masse. Marschall Runge, CEO of Michigan Medicine and executive vice president for medical affairs at the University of Michigan and dean of the UM Medical School, said the hospital is short-staffed, but not just from a shortage of workers. Much of the hospital staff worked countless hours and skipped time off to help the health system manage the COVID-19 surges last year. Now, in 2021, many of those nurses, doctors and clinical staff are taking much needed paid time off they
“AS A WOMAN WHO’S ALSO A MOTHER AND AN EXECUTIVE, I FEEL THAT WOMEN IN THIS TIMEFRAME HAVE CARRIED THE BURDEN OF THE EXTREME CONTACT SPORT THAT WORK-LIFE BALANCE HAS BECOME DURING COVID” — Keleigh Williams, ECT’s chief corporate officer
the hospital. Rounders may also connect employees with other resources available through Trinity Health Michigan, such as its counseling services or lifestyle medicine program. Many companies have adjusted their time-off policies, such as increased PTO or companywide holidays. On top of the “generous” paid time off Rocket Mortgage already offers, the company also added two personal days a year an employee can use at their discretion, said Jim Livingston, the chief people officer for Rocket Companies. Last year, the company also gave every team member an extra day off — they called it an “R&R day.” Encouraging employees to set aside time for themselves only goes so far if employees feel too swamped to actually take advantage of increased vacation time. That’s why at Livonia-based OHM Advisors, an architecture, engineering and planning firm, lets employees roll over vacation days from the previous year. Company leaders have also tried to model healthy work-life balance behavior by taking time off themselves, said Jon Kramer, the president at OHM Advisors. Similarly, AccumTech did away with a traditional PTO bank and started offering workers unlimited time off, which Beattie noted helps “alleviate that pressure of having to plan out the whole year.” After working at high capacity during the peak of the pandemic, some employers have found workers
bypassed in 2020. “It’s not absenteeism, but PTO,” Runge said. “They earned that longer vacation, but it is creating some holes in our staffing right now. I expect that to continue through the fall.” Financial insecurity can exacerbate burnout, so some employers are providing extra financial support. “Last year, we paid a work-fromhome stipend — $1,000 to each employee,” said ECT’s Williams. The additional incentive has also been useful for attracting new talent. “We’re still extending $250 for each
new hire to help set themselves up, and we don’t really care what they spend it on.” Trinity Health Michigan rolled out a Colleague Assistance Program for employees struggling financially during the pandemic. So far, the program has raised more than $2 million, using funds donated from colleagues and community members, to help employees pay for necessities such as food, medical bills, rent and more. Last year, Rocket launched its educational program, Rock Academy, which fully covers tuition for certain in-network programs and reimburses up to $5,250 for any out-of-network program. Burnout has not been felt evenly across the American workforce, with women in particular having borne the brunt of juggling multiple roles, from mother and worker to partner and homeschool teacher, employers noted. Nearly 3 million women have exited the labor force since the start of the pandemic. “As a woman who’s also a mother and an executive, I feel that women in this timeframe have carried the burden of the extreme contact sport that work-life balance has become during COVID,” said Williams. When Comcast’s employees struggled to find child care because of the pandemic, the company offered back-up care for children and elder family members. “It has definitely helped mitigate employee burnout, as it’s taken a great deal of pressure off them as they seek to juggle personal and professional responsibilities,” said Gilbert. Trinity Health Michigan also set up a study club inside a day care facility next to St. Joseph Mercy Oakland that supervises children as they attend remote schooling and conducts tutoring while parents are at work. But will these new perks and policies outlast the pandemic? The tentative answer seems to be yes. Several companies surveyed by Crain’s reported higher productivity and said turnover was lower or about the same as pre-pandemic levels. Even as big-name tech companies like Google try to poach employees amid the labor shortage, Madonna said workers at AccumTech choose to stay because of the work culture. “There’s no playbook for this,” said Madonna. “I think that’s what we’re all learning.” — Crain’s senior reporter Dustin Walsh contributed to this story
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CLASSIFIEDS To place your listing, contact Suzanne Janik at 313-446-0455 / sjanik@crain.com or, for more information, visit our website at:
www.crainsdetroit.com/classifieds
PLACE YOUR AD TODAY AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 19
MOTOR BELLA
From Page 3
“The activations are kind of like going to Cedar Point, but you’re in cars and vehicles,” he said. “So you’re going to have all these exhilarating things that people can do and be a part of.” Tickets for the Sept. 23-26 public days are $15 weekdays and $20 on the weekend for adults and went on sale in July. Organizers expect around 150,000 people to attend the event over the course of its four public days. Alberts said he anticipates 8001,000 media personnel from 12 different countries to visit the show during its initial two days reserved for media and industry members. That’s a fraction of the 750,000 people and 4,500 media members who attended the 16-day Detroit auto show in 2019, but the comparison is “apples to oranges,” Alberts said. Motor Bella was never meant to replace NAIAS, but rather serve as an experimental template for what Detroit’s new show could be and needs to be to stay relevant. The NAIAS had been sputtering long before scheduling changes and COVID-19 idled it for the past nearly three years. The event traces its origins back a century and for a long time was the granddaddy of auto shows. But increased competition from the likes of the New York International Auto Show and Frankfurt Auto Show, as well as the advent of digital launches, cooled the popularity of the winter show in Detroit. “Shows were changing before the pandemic. That accelerated additional change,” Alberts said. “What I’m looking at after doing this for 30 years is adjusting to the current consumer. I would say this is the beginning of what probably millennials and other people want to see.” Others are also adjusting to the rapid changes of the industry and format of live events as the threat of COVID-19 lingers. The Frankfurt Auto Show, considered the world’s largest auto show, relaunches next month as the IAA Mobility show with a broader focus on all forms of transportation. Earlier this month, the New York show canceled because of latest surge of coronavirus. Similarly,
Map shows the planned layout of Motor Bella.
the Paris Motor Show was postponed until next year, while the biennial Tokyo Motor Show won’t return until 2023. When the Detroit Auto Dealers As-
sociation canceled the NAIAS this year, the decision was met with some surprise and disappointment, though it turned out to be a smart move.
“We have a business here, too,” Alberts said. ‘We didn’t want to take the risk of having something occur like has happened, you know, and we’re going to make it safe for peo-
EVACUATE
From Page 3
But the couple have many friends and colleagues who have been trying to get out of the country since the Taliban swept from city to city earlier this month reclaiming control of the country following two years of U.S. occupation, Mario Talerico said. The Afghan staff at the American Medical Center lack U.S. visas through the Special Immigrant Visas program and “it’s not practical that they’ll get out safely through the normal chain of evacuations,” Talerico said. Many of those Afghans who were closely aligned with Americans have spent the past two weeks in hiding as they frantically attempted to flee their homeland, Mario Talerico said. Talerico said he got involved helping his aunt and uncle — both U.S. military veterans — start up the fundraising drive and coordinate logistics to help Afghan refugees get to the Kabul airport and board flights out of the country. They are attempting to relocate the refugees in either the U.S. or European countries, Talerico said.
Afghan families walk to a bus that will take them to a refugee processing center at Dulles International Airport on Aug. 24. in Virginia. | JOSHUA ROBERTS/GETY IMAGES
The Talerico family launched the evacuation effort after armed men believed to be Taliban fighters took control of the medical clinic on Aug. 15, Mario Talerico said.
20 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
“We got messages from (Afghans) basically saying ‘They’re going to kill us, they’re going to kill us, they’re threatening us,’” Talerico said. Talerico said he’s had the “incred-
ible support” of his Detroit-based law firm to work on helping friends of his aunt and uncle get out of the country. “We would not be where we are to-
ple to go outdoors.” Alberts confirmed that the association is targeting September 2022 to return to Detroit for the NAIAS with an indoor-outdoor format at TCF Center and other areas throughout downtown. The outcome of Motor Bella will influence how that takes shape, just as the Motor City Car Crawl in Detroit earlier this month tested the waters for a hybrid show next summer. “It was just the excitement of people getting out and socializing again,” Alberts said of the four-day event, which drew more than 40,000 people to the six public parks downtown. “It was a good test run for the future of downtown events.” Alberts declined to offer financial information regarding Motor Bella. In terms of size and investment, the show will be significantly larger than the Motor City Car Crawl, but smaller than the NAIAS. Delta Air Lines is the largest of the show’s 21 general sponsors. Michelin, PNC Bank and KeyBank are also major sponsors, along with the Michigan Economic Development Corp. The MEDC will host AutoMobili-D, the technology side of the event, which will feature 80 startups and tech companies showing off the latest in mobility technology, including drones and autonomous cars. Motor Bella will also have a charity event, likely outdoors in downtown Pontiac, but details are still being finalized and a fundraising target has not yet been set. The Motor City Car Crawl’s charity event, headlined by singer Sheryl Crow, drew around 1,600 people and raised $200,000, Alberts said. The 2019 NAIAS, including the black-tie Charity Preview, raised nearly $4 million for charity. Alberts said the fate of the Motor Bella after its launch is up in the air, but the Pontiac event is not necessarily a one-off. “There’s no reason we can’t put on more than one event,” he said. “Whatever we do downtown next year will have its own identity, which I think is important because we want to do things in Detroit, but we want to do things outside, too, to show off mobility.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl day without the support the firm’s giving me and my team,” said Talerico, whose practice is in corporate law, commercial transactions, finance and mergers and acquisitions. “A lot of support (from the law firm) has been through connecting me with people who can make things happen.” For security purposes, Talerico said he couldn’t disclose how exactly the Afghans were evacuated from Kabul on Tuesday night. “It was a private partnership to get them to the airport and with the assistance of the U.S. military we were able to get them on,” he said. Talerico said his family hopes to help more Afghans get out of the country before the Aug. 31 deadline for the U.S. military to pull out of Afghanistan. “Given the issues on the ground, we’re treading very lightly given that the Taliban are likely targeting our staff members,” Talerico said. “They’re in hiding. We’re trying not to move them until we’re confident we can get them out of the country safely. It’s a very fluid situation.” Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood
VACCINATED
From Page 3
In late July, four community nonprofits got a total of $3.7 million in funding from the Health Resources and Services administration of the U.S. Department of Health and Human Services. They included: C-Assist in Dearborn, $681,006 Community Health Awareness Group, Detroit, $1 million Michigan Voices, Detroit, $999,998 Wayne Metropolitan Community Action Agency, Detroit, $1 million The grants were part of $121 million in grants awarded by the federal agency to support “trusted voices in local communities” in sharing information about vaccines, building vaccine confidence, and addressing barriers to vaccination for individuals in underserved communities. Community Health Awareness Group will leverage its relationships with influencers among people with a history of using drugs and in the LGBTQ+ community, implementing a social networking approach to reducing vaccine concerns, said Barbara Locke, director of finance and prevention programs. “The intent is to work with people who have been vaccinated and can serve as influencers in their community to help their populations to overcome vaccine hesitancy concerns and encourage them to get vaccinated,” she said. The approach has proven successful in encouraging people in those communities to get tested for HIV and other communicable diseases, she said. CHAG will train those people in evidence-based interventions. It also will bring a medical mobile unit with clinical staff to provide on-site vaccinations for those opting in, Locke said. “Once our individuals decide they want to get vaccinated, they’re less likely to go to a health care institution. We want to be right there so they can do it,” Locke said. CHAG will also connect those people to community health workers who keep them engaged to make sure they come back for the second shot, she said. The focus of this work will be primarily in Detroit but could also serve others from outlying communities who come to CHAG for assistance. A June round of $125 million in federal funds went to groups including two for grassroots outreach in Michigan: the National Alliance of Hispanic Health and United Way of
The city of Detroit’s census campaign hired community groups to go door to door to encourage participation in the decennial population count. A census canvasser is pictured July 1 near Griggs Street and Fenkell Avenue last summer. Groups will also try to work in the community to encourage COVID-19 vaccinations. | CITY OF DETROIT VIA FLICKR
Larson
Davis
New York City. The grants are supporting community-based efforts to mobilize community outreach and health workers, patient navigators, social support specialists and others working to increase vaccinations. United Way for Southeastern Michigan is distributing $600,000 of the federal grant to its New York affiliate to Detroit churches to fund direct outreach such as phone calls, texting and door-to-door canvassing to build awareness of upcoming vaccination events, along with online education
through church websites, social media and email blasts, said Eric Davis, vice president, basic needs, health and outreach. United Way will provide any technical assistance needed for the churches to do that education and outreach, he said. The Detroit-based agency and its affiliates across the state are using a similar model to pass through another $600,000 in grant funding from the Michigan Association of United Ways to community groups in Wayne, Oak-
land and Macomb counties for education and outreach in their communities, said Esperanza Cantu, director of health initiatives. It plans to issue a request for proposals the first week of September. “It will be a quick timeline,” Cantu said. “The need to get the community vaccinated is really great. We’re still seeing pockets in Southeast Michigan where we have high percentages of people not vaccinated, yet. We’re looking to support our community partners who have boots on the ground in their neighborhoods.” The long-lasting trust the groups have built in communities is an asset and a strength we need to build upon, especially during a time of so much mistrust ... there’s a lot of misinformation about the safety of the vaccines. We believe our nonprofits can help to address that mistrust.”
Penske Automotive Group Inc., Bloomfield Hills, a transportation services company, acquired Mercedes-Benz of South Charlotte, Charlotte, N.C. The acquisition is expected to add $150 million in annualized revenues. It is Penske Automotive Group’s 26th Mercedes-Benz dealership. Website: penskeautomotive. com
Lake, a cabinet store, from second-generation owners Steven, Eddie and Mickey Shapiro. ASA Cabinet Corp will become a new KSI Kitchen & Bath location. The Shapiro family will retain ownership of ASA Builders Supply, supplier of mouldings, doors and stair parts. Website: ksikitchens. com
an installer of insulation, fireplaces, garage doors, gutters and specialty building products in Georgia, Ohio and South Carolina, acquired Accurate Insulation, Milford, an insulation installer of insulation. The combined company will do business as Accurate Insulation. Website: accurate-insulation.com
Ford UAW employees at Ford Van Dyke Transmission Plant in Sterling Heights sign boxes containing medical-grade face masks Ford donated to communities with limited access to personal protective equipment. The donation dovetailed with the automaker’s #VaxWithFacts campaign. | CHARLOTTE SMITH/FORD MOTOR COMPANY
In connection with the nonprofit-led vaccine outreach efforts, United Way is developing a marketing campaign that will include pro bono radio spots and social media posts, Davis said. The direct funding to nonprofits follows a public service announcement Ford Motor Co. Fund produced in April with 11 nonprofits to encourage multicultural communities to help combat the spread of misinformation about the vaccine among multicultural populations. The #VaxWithFacts PSA was published across the digital and social media platforms of the organizations that took part in it and shared with their stakeholders. While the Ford fund doesn’t plan another concentrated effort to reshare the PSA, nonprofits are welcome to share it, said Stefanie Dunham, digital communications coordinator for the fund. “The PSA was created to be a tool that each organization could use to support their communities, and they are welcome to continue using the PSA in any new vaccine efforts they may be planning or have underway,” she said. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch
DEALS&DETAILS CONTRACTS Lineage Logistics LLC, Novi, a cold storage specialist, is sponsoring professional golfer Virginia Elena Carta. As part of the sponsorship, Carta will wear Lineage’s logo during official tournaments and associated public events. Website: lineagelogistics.com
MERGERS & ACQUISITIONS Farbman Group, Southfield, a commercial real estate company, sold four office buildings totaling over 480,000 square feet. The sale included Oak Hollow Gateway and Centrum Office Center in Southfield, Laurel Office Park in Livonia, and Drake Pointe Office Building in Farmington Hills. Website: farbman. com
Grede, Southfield, producer of cast and machined iron components, acquired Neenah Enterprises Inc. Advanced Cast Products business, Meadville, Pa., select industrial business and the commercial vehicle business of Neenah Foundry. Website: grede.com KSI Kitchen & Bath, Brighton, a kitchen and bath design firm, acquired ASA Cabinet Corp., Walled
LaFontaine Automotive Group, Highland Township, a car dealer group, acquired Signature Lincoln in Owosso. This is the group’s first Lincoln franchise. It will be temporarily relocated to LaFontaine Ford of Flushing while construction is underway for a standalone Lincoln dealership that will be located off Hill Road and US-23. Website: familydeal.com SRI Holdings LLC, Columbus, Ohio,
MOVES Resgreen Group International, Clinton Township, a mobile robot company, moved its manufacturing and production headquarters to Shelby Township. Website: resgreenint.com
NAME CHANGES Landgrid by Loveland Technologies, Detroit, a property data and lo-
cation intelligence company, has rebranded to Regrid. Website: regrid. com Herman Miller, Zeeland, a furniture company, acquired Knoll Inc., East Greenville, Pa., a furniture manufacturer, and has been renamed MillerKnoll. Website: hermanmiller.com
NEW SERVICES Lawrence Technological University, Southfield, a private university, has two new degree programs — Bachelor of Science and Master of Science degrees in business data analytics, both available through the LTU College of Business and Information Technology. Classes are offered in-person, online, or in a hybrid format. Website: ltu.edu
AUGUST 30, 2021 | CRAIN’S DETROIT BUSINESS | 21
THE CONVERSATION
School health centers prepared for another unprecedented year School-Community Health Alliance of Michigan: Debra Brinson, executive director of the nonprofit, has spent 30 years expanding health care in educational settings. She oversees 130 school-based health care offices and another 50 mental health offices inside Michigan’s schools. She’s also the CEO of Honor Community Health, which provides primary and behavioral health centers, school-based centers and a dental center in Oakland County to families regardless of the ability to pay. But she’s never seen a school year like last year’s. 2021 is supposed to be different. Schools have had a year of practice to keep kids in school and parents at work. Binson is more optimistic as nurses, medical assistants and practitioners are more prepared for this year’s pandemic-laden semesters. | BY DUSTIN WALSH How did practitioners and the staff on site at schools handle last school year? Every community handled it differently. School-based health centers are operated by a health department, a federal health center or a hospital or another nonprofit. So the reactions to the pandemic depended on what was happening in the schools. We converted a lot of our centers to be able to conduct telehealth visits with kids and families. Some of the centers started going out and doing (COVID19) screening and administering vaccines out in the field. But most of the centers opened up where schools were opened up during the pandemic. All communities were very unique. That’s what makes school-based health centers so great. They all pivoted and did something different to ensure they were seeing kids and families and getting them the health care they needed. What were the most common issues last year, given how unique of a year it was? The predominant issue with the children was the sense of isolation and sense of social disconnect. They didn’t have their peers when they were remote. They didn’t know how to have those normal relationships and part of that led to the sense of depression and anxiety. A lot of that was bundled together with the worry they weren’t doing well in school. A lot of our kids were really struggling with the school piece of last year. How do they try to stay engaged and the stress of all that. Parents didn’t know how to keep
“WE KNOW MASKS ARE AN IMPORTANT PRACTICE TO KEEPING KIDS PHYSICALLY HEALTHY. AND EMOTIONALLY HEALTHY. KIDS SEEM TO LIKE THE MASKS. THEY ALLOW THEM SOME SENSE OF NORMALCY NOWADAYS. “ — Debra Brinson, executive director, School-Community Health Alliance of Michigan
their kids engaged. Especially if those parents were working at the same time. What is the centers’ job this year? To hopefully bring a sense of normalcy all the way around. Help getting the kids back into the routine and remind parents that it’s time for physicals or routine immunizations. We want to see a significant push to not only
vaccinate kids for COVID-19 and/ or mask wearing, but to make sure kids’ immunizations are up to date. Don’t want secondary outbreaks of the flu as we’re also trying to contain COVID-19. We know we need to get kids immunized. Remind kids and families of health practices, about keeping distance. Remind parents and children of best practices of staying calm and keeping one day at a time. All of those issues will start to emerge early in the school year. We know masks are an important practice to keeping kids physically healthy. And emotionally healthy. Kids seem to like the masks. They allow them some sense of normalcy nowadays. We also know there will be kids that may be devastated without masks. Honestly, they’ve normalized it. Right now, though, we’re going into unchartered territories, so it’s important to know what local health departments are recommending. It’s basic but extra important. Like not sending kids to school when they are sick and making sure they are immunized. Kids are starting new routines and that’s good. They do best with routines. But it’s also a new routine for mom, dad and grandparents and siblings. We need to show them what a good routine looks like. Many district aren’t mandating masks. How do the centers handle those situations’? It’s no different than any time before. All of our centers’ staff have been trained and gone though this now. They will follow the local health department and best practices
(staff will wear masks inside school buildings). The best practice is for people to be masked. That’s the same for kids. We’ll also continue to promote vaccines. There are unique situations about masking and such, but that’s a community decision. All we can do is to encourage what we know is the best practice at all of our centers. What a health care provider may tell you is likely very different than what a school board is going to. Our centers will have the ability to share with the students and the parents why this practice is a very good one and support the parents and students to be as healthy as they can be. What expectations do you have for this school year? That’s hard. Every community is so different. We had schools that remained open last year with a virtual and in-person option. We don’t have the state mandating a public health emergency this year, which leaves many things up in the air. It’s all going to be dependent on what the COVID rates are in each individual school and then making decisions based on what recommendations we get from the health department. We’re used to the idea that a community needs to do is what a community needs to do. One size does not fit all. Our centers have the structures in place with great clinician care, great support services and great mental health services. If a school shuts down or remains open, our centers will adjust and make those changes. They are fluid and have to remain fluid to be able to support students, families and the schools.
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RUMBLINGS
Former Punch Bowl Social space aims to be Lions pregame hub THE SPACE LEFT BEHIND BY Punch Bowl Social in downtown Detroit will be converted into a “high end, luxurious” pregame destination for Detroit Lions home games this season. Indianapolis-based Bullseye Event Group is taking over the lease at the 24,000-square-foot, Bedrock-owned building on Broadway Street, said Kyle Kinnett, CEO of the events company. Its new tailgating setup will help Bedrock fill a popular entertainment space vacated by Punch Bowl at the start of the pandemic and also help fill a void after Eastern Market canceled tailgating this season due to staffing shortages. Kinnett said Bedrock allowed him to take over the lease through January, until a permanent tenant takes over. “I think that there will be increased demand,” Kinnett said.
The first Detroit Lions tailgating event hosted by Indianapolis-based Bullseye Event Group will take place Sept. 12 inside the former space of Punch Bowl Social on Broadway Street in Detroit. | BULLSEYE EVENT GROUP
“The reason that we’re going from a partial season to a full season is because the popularity of it in Detroit has taken off.” The first of eight pregame parties is scheduled for the Lions regular season opener Sept. 12 against the San Francisco 49ers at Ford Field. Through a sponsor deal as the official Lions tailgate
22 | CRAIN’S DETROIT BUSINESS | AUGUST 30, 2021
host, the company held events previously in the Comerica Park lot, but only a few times per season and not since COVID-19 halted large gatherings. The pandemic also hurt bars and restaurants, some of which never rebounded. Punch Bowl closed its 19 locations around the country in March 2020 and laid off
most employees. The company has either reopened or has plans to reopen most locations, according to its website, but Detroit is not one of them. The Detroit location opened in 2014 with a bar and restaurant, bowling lanes, pingpong tables, karaoke and arcade games, and it grew into a staple of a reviving entertainment district downtown. The kitchen will be led by Food Network celebrity chef Aaron May and local chef Kate Williams, a James Beard Award nominee who closed her Corktown restaurant Lady of the House earlier this year. Events, which begin three hours before kickoff, will also include music from local DJ Don Mecca, an open bar, Xbox gaming, visits from Lions cheerleaders and a live auction. The cost is $85 per person. Parking in the attached garage is $50.
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