Auto suppliers prepare for layoffs if UAW strike continues
Work stoppage halts production of several high-demand vehicles
By Kurt Nagl
Automotive suppliers at every tier are playing the waiting game as the United Auto Workers strike unfolds, preparing for potential layo s should it be a prolonged work stoppage.
e union’s walkout at midnight Friday has an impact beyond the three targeted plants —
Ford's Michigan Assembly in Wayne, Stellantis NV’s Toledo Assembly Complex just across the Ohio border and General Motors Co.’s Wentzville Assembly plant near St. Louis.
e strike will halt production of popular, high-demand vehicles including the Ford Bronco and Ranger; the Jeep Gladiator and Wrangler; and the GMC Can-
yon and Colorado. Major suppliers to these plants include Lear Corp., Dana Corp., Superior Industries, Cooper Standard, Tenneco and Martinrea, to name a few.
Crain’s reached out to more than a dozen tier-one suppliers for comment on strike impact.
Meet
VOL. 39, NO. XX l COPYRIGHT 2023 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED Michigan Central Station was lit up for Detroit Homecoming in 2017. A year later it was sold, and now its redevelopment is nearing completion. | AARON ECKLES 35 l COPYRIGHT 2023 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED CRAINSDETROIT.COM I SEPTEMBER 18, 2023 SEASONAL ALE
to extend Bell’s presence. PAGE 3 PREVIEW
out our fall arts & culture guide. PAGE 37 CONVERSATION
Cold-weather Oberon
Check
the adoptee leading one of the state’s largest foster care nonpro ts. PAGE 46
10 OUTCOMES
10
Detroit Homecoming hosts its 10th edition this week. Here’s how Detroit expats have gone to work for their hometown. Starts on Page 8 See STRIKE on Page 45
A
truck delivering parts is stopped by protesters Friday during the UAW strike of the Ford Michigan Assembly Plant in Wayne. | PAIGE HODDER/AUTOMOTIVE NEWS
FOR
YEARS
SMART expands in Oakland County, but disconnect remains
By Dustin Walsh
Oakland County residents went from NIMBYs to YIMBYs in November by approving a millage to open up access to Suburban Mobility Authority for Regional Transportation or SMART bus routes across the county.
SMART extended several routes this month opening up access to critical employers, including Ascension Providence Novi and Twelve Oaks Mall. e regional system even added new stops, including one at Woodward Avenue and Long Lake Road in Bloom eld Hills where there hadn't been any stops before.
While outside experts applaud the new connections, they say the extensions and additions remain a Band-Aid on the region’s broken public transportation system.
Voters OK'd a 10-year, 0.95-mill property tax in November to fund the SMART expansion. e mill-
age costs the owner of a home with a market value of $300,000 about $140 a year.
It was a do-or-die gamble the Oakland County Board of Commissioners made in August when it voted to end the opt-out provision that has provided for a patchwork of SMART service across the county. Prior to the vote, some communities participated in SMART services and others did not, leaving roughly 1.27 million residents without a major bus service for at least a decade.
Now, SMART’s expansion is connecting those far- ung regions, at least to the city of Detroit.
Harmony Lloyd, vice president of planning and innovation for SMART, said the route extensions re ect where the transit system had the most demand.
“We repeatedly heard about those currently using those routes having to walk to get to Twelve Oaks Mall and other retailers after getting o at the Farmington Hills border (with Novi),” Lloyd said. “Anecdotally we knew it was a big issue. at line is heavy with retail, restaurants and hospitals. ere’s so
much opportunity for people who make that $10 to $25 an hour wage who are grateful to have a bus to get to work.”
Mike Badali, regional COO for Ascension Michigan’s metro Detroit West region, said bus service to Ascension Providence increases health care access.
“A new bus stop near Ascension Providence Hospital in Novi will facilitate easier access to our health care facilities, especially for patients who need medical care and services,” Badali said. “ is will also provide associates with another mode of transportation to and from work.”
Lloyd said the Grand River Avenue route, which now extends from the Old Redford Meijer at Grand River and McNichols Road to the Fifth ird Bank on Grand River Avenue and 12 Mile Road in Wixom, has roughly 6,000 monthly riders. e now extended 12 Mile route, which goes from 13 Mile and Flora Road in Roseville to the Fifth ird in Wixom, serves 14,000 riders per month.
Robert Pfa , a public transit researcher, visiting assistant professor at Cleveland State University and native metro Detroiter, said
the regional transportation system’s structure isn't conducive to e cient transportation.
“Imagine if you live Downriver and you want to get to Twelve Oaks; there’s no direct route,” Pfa said. “If you take the bus, you’ve got to go into the city and then back out to where you want to go.
ere are no external regional connectors. Job ow is not just in and out of the city (of Detroit).”
Joanna Ganning, associate dean of faculty research, development and administration in Cleveland State’s public a airs department, told Crain’s there are no legitimate studies documenting labor force participation and bus access. She said many bus route extensions appear to be driven by labor demand for business owners that don’t fully consider the reliability
of cash-strapped transit systems.
“We don’t know if these are the destinations riders would prefer,” Ganning said. “Really, adding a bunch of new stops doesn’t take into account whether traveling those routes are even e cient for the riders. Does it enhance their quality of life?”
SMART is also facing an ongoing bus driver shortage, which has stalled its further expansion across Oakland County, said Lloyd.
“We’re looking at ways we could expand, but we have to be able to deliver the services within our current capacity,” Lloyd said. “We chose these routes because they were already in existence, we were able to expand them and make them a little bit longer without having to add additional drivers and equipment.”
2 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 CREATING THE LEADERS AND BEST IN BUSINESS Students in University of Michigan-Dearborn’s College of Business have the edge to compete. Our finance lab allows students to earn their Bloomberg certification and manage an investment fund with real money. It’s experience that students like Angelo Policicchio have taken all the way to Wall Street. umdearborn.edu/cob SEE ANGELO’S STORY AND LEARN MORE
A SMART bus drives along Michigan Avenue in Detroit on Aug. 31, 2021. | NIC ANTAYA
Voters OK’d a 10-year, 0.95mill property tax in November to fund the SMART expansion.
Cold-weather Oberon to extend Bell’s presence
New Eclipse seasonal ale billed as fall, winter offering and marks rst nationally distributed launch for brand I
One of Bell’s Brewery’s most popular brews is adding a new member to the family.
Bell’s on Wednesday announced the release of its newest seasonal ale, Oberon Eclipse. Eclipse is billed as a fall and winter o ering, standing alone from its namesake, which is seen as a warm-weather beer. e release of Oberon Eclipse marks the rst nationally distributed launch for Bell’s, according to a news release.
Oberon Eclipse has the avor of a citrus wheat ale with hints of orange and coriander. e new Bell’s beer, at 6.3% ABV, will be available October through March and can be purchased in six- and 12-pack 12-oz. cans and bottles, four-pack 16-oz. cans, 19.2-oz. cans and on draft at participating locations.
e original Oberon is available from March to September.
Is climate an issue in home sales?
By Nick Manes
Long touted as a climate haven, metro Detroit and the larger Upper Midwest are still far from immune from the threats brought about by climate change.
But as people from around the country potentially look to the region as an escape from far more severe heat, wild res, hurricanes and other climate-related threats, the question becomes: where might they live in Michigan?
It’s a question increasingly being asked by would-be homebuyers in a challenging market in Southeast Michigan and around the country, according to a new report, which says that more than three-quarters of buyers are now factoring in the potential for climate threats to their large purchase.
And while Michigan might fare better than many other states when it comes to the threats from climate change, some risks are particularly evident in one Detroit neighborhood.
Still, real estate executives say buyers are cognizant of the potential for climate threats — which in metro Detroit, largely
By Jay Davis
Bell’s to o er retailers and distributors demand-driving products all year.
Oberon Eclipse will also be available as part of a Bell’s seasonal variety pack with the popular Two Hearted IPA, Big Hearted and Best Brown.
Scott Powell, Bell’s Brewery director of marketing, said in a statement the release of Oberon Eclipse allows drinkers to embrace the longer nights and colder temperatures.
Bell’s Brewery executive vice president Carrie Yunker in a statement said that as the company closes in on national distribution this year, it’s important for
“Fans have been demanding year-round Oberon for years now, so we love when we get a chance to give our fans, and business partners, something they’ve been asking for,” Yunker said.
“A lot of people think the time change signals an end to their days of summer fun. …we instead want to encourage fans that it’s all about perspective. With Oberon Eclipse, we’re excited to be able to o er fans an Oberon that now ts perfectly with the season.”
Bell’s earlier this year expanded the Two Hearted brand. e brand additions come nearly two years after Bell’s was acquired by Australia-based Lion Little World Beverages.
Flurry of housing bills rattles landlords
Reforms considered as housing issues grow
As the state Legislature returned last week for its fall session, Michigan landlords are nervous as a slew of housing legislation and rental reforms appear to be top of mind for many majority lawmakers, as well as activist constituents.
vous,” I. Matthew Miller, a real estate attorney at the Law O ces of Aaron D. Cox in South eld, told Crain’s of the current environment given some of the pending policy proposals.
amounts to concerns about ooding — but such considerations are still relatively minor when compared with other factors.
“I think everyone is aware” about the threats of climate change and where they opt to live, said Brad Ward, vice president of public policy and legal a airs at Michigan Realtors, a Lansing-based trade group for the residential real estate industry.
Rather, factors such as taxes and temperature are really what drives people’s homebuying decisions, Ward said.
“Climate is something that people are increasingly knowledgeable about, but it’s not moving the needle,” according to Ward.
Data tends to bear that out.
A report earlier this year by Ward’s national trade group, the National Association of Realtors, and based on the most recent U.S. Census numbers, showed that Florida and Texas had the most inbound migration last year, growing 1.9% and 1.6%, respectively.
Both states tend to experience
high summer temperatures and have experienced signi cant hurricane damage in recent years.
Top of mind?
A new report released this month by online brokerage Zillow says that “more than 4 out of 5 prospective home buyers consider climate risks as they shop, with ooding being the major concern, followed by wild res, extreme temperatures, hurricanes and drought.
“Climate risks impact where most prospective buyers shop for a home,” Manny Garcia, Zillow senior population scientist, said in a statement. “While all generations juggle trade-o s like budget, oor plans and commute times, younger home shoppers are more likely to face another consideration: ey want to know if their home will be safe from rising waters, extreme temperatures and wild res.”
From the potential overturning of a law outlawing rent control to bills limiting what requirements landlords can use in selecting tenants, the apprehension felt by those who rent out housing units is real, and comes at a time when limited inventory is leading to a rallying cry around the need to increase housing stock around the state.
However, as those calls are happening, data shows that rent increases by landlords have largely ground to a halt and a bevy of new apartment supply is expected to hit the market in coming months and years.
Additionally, many of the policy proposals on o er make for a double-edged sword, with some geared more toward making building easier and therefore bringing more supply to the market, while others are more geared toward taking steps that would be perceived as punitive to landlords as property managers.
“We’ve never been more ner-
Miller is also chair of the Legislative Committee of the Property Management Association of Michigan, a statewide apartment industry organization.
“As property managers and landlords, our concern is that a lot of the things that people are trying to pursue will actually either not help the people that the legislators want to help, or will actually be detrimental to them,” Miller said.
e anxiety comes as housing activists have being rallying at the state Capitol in Lansing calling for a host of reforms, and lawmakers inside the building — led by Democrats for the rst time in decades — ponder myriad potential policy changes.
In a recent “what’s next” speech, however, Gov. Gretchen Whitmer made only a few references to housing, and what references she did make were largely around expanding supply. Whitmer’s administration has made a goal of adding or rehabbing 75,000 housing units around the state over the next ve years.
SEPTEMBER 18, 2023 | CRAIN’S DETROIT BUSINESS | 3
By Nick Manes
“Fans have been demanding yearround Oberon for years now...”
See LANDLORDS on Page 42
Carrie Yunker, executive VP, Bell’s Matthew Miller
Flooding biggest risk so far in Detroit area
Homes along Fox Creek in the Jefferson Chalmers neighborhood in Detroit | NICK MANES
See CLIMATE on Page 44
Cornerstone latest Shinola Hotel block closure
Yet another tenant has departed the Shinola Hotel block downtown.
e Cornerstone Barrel House restaurant and bar closed its location in a Dan Gilbert-owned building in recent months and its former space at a prime central business district corner sits with window clings advertising it as available for lease.
Barrel House Kitchen + Cocktails opened in April in the old Dino’s Lounge space at 22740 Woodward Ave. in downtown Ferndale, according to a post on the restaurant’s Instagram page.
A spokesperson for Dan Gilbert’s Bedrock LLC real estate company has not responded to email inquiries about it. e restaurant owner has likewise also not responded to emails.
Cornerstone had been the oldest tenant on the block, which is on the east side of Woodward Avenue between Grand River and
John R. It opened in 2015.
e restaurant closure is the latest shakeup on that stretch of Woodward just north of the mixed-use development with a skyscraper being built on the site of the former J.L. Hudson’s department store.
Le Labo, a fragrance maker, shuttered its space at 1434 Woodward Ave. in the summer 2022 and later reopened at 1232 Library St.; Détroit is the New Black closed in February 2022 at 1430 Woodward Ave.; and Madewell at 1426 Woodward Ave. shuttered in March 2022.
Also on that block, the lingerie brand Savage X Fenty by singer and business mogul Rihanna is opening a brick-and-mortar location. Sources have also said that Bedrock is attempting to lure an Apple store to ll some of the space that’s been vacated.
It also follows the closure of the Under Armour Brand House in January 2022. e John Varvatos Enterprises Inc. store closed during the pandemic and never reopened as it went through Chapter 11 bankruptcy. It was replaced by golf clothing retailer Greyson Clothiers.
City council OKs affordable-housing rules
owned property at below-market rates;
w Direct support from the city of at least $500,000;
w e use of federal Community Development Block Grant funds;
OU extends president’s contract for 8 years
Elected o cials in Detroit have moved to mandate a ordability requirements for residential developments in the city receiving property tax abatement.
Whereas before, developers could voluntarily set aside apartment units priced at below-market rates, they will now be required to do so if they receive gap funding through any of six incentive mechanisms.
e Detroit City Council on Tuesday voted unanimously to adopt the ordinance, which had long been pushed by City Council President Mary She eld, now a possible candidate for mayor.
e main goal with the Tuesday vote was to codify into city law that the use of property tax abatements — which sources said makes for the largest gap funding mechanism used by developers — would immediately trigger the a ordability requirement. E ectively, the updated ordinance now mandates what many developers were already doing.
Additionally, the ordinance approved Tuesday moves enforce-
ment of the new requirements from the city’s Civil Rights, Inclusion and Opportunity Department to the Housing and Revitalization Department.
In 2017, She eld sponsored the Inclusionary Housing Ordinance, mandating that developers seeking taxpayer-funded assistance on their multifamily projects must set aside a percentage of the units as a ordable.
“What was rare in 2017, has now become the standard for residential development in Detroit in 2023,” She eld said in a statement. “ ese amendments will future strengthen the ordinance by codifying the use of tax abatements as an enforcement trigger
and appointing the Housing and Revitalization Department (HRD) as the department responsible for oversight. While these amendments will ensure the continued impact of the Inclusionary Housing Ordinance, the work will go on as we continue to look at new ways we can improve housing policies in Detroit.”
e updated ordinance in Detroit comes amid a statewide push for better housing a ordability, and a urry of legislation at the state Capitol in Lansing is possible in the coming weeks. Under the previous ordinance, Detroit rental housing developers would be required to set aside a percentage of units at below market rates if they used any of ve programs: w e sale or transfer of city-
w e use of federal HOME Investment Partnership Program funds;
w Other potential federal or state programs.
Developers previously tended to set aside some units as “a ordable” when using property tax abatements, but the new ordinance codi es that and lays out the metrics by which they must do so.
e ordinance passed Tuesday mandates that developers using the above-mentioned funding mechanisms and building at least 20 units must set aside 20% of the units at 80% of the area median income or AMI for the term of the tax abatement.
In Wayne County, that means units would be priced at below-market rates for a single person earning below $53,040 and for two people earning below $60,640, according to gures from the Michigan State Housing Development Authority.
“We believe the proposed amendments will increase clarity for housing developers seeking tax abatements by codifying what has been to this point voluntary inclusions of a ordable housing, adds key clari cations to more thoroughly de ne terms, and prevent displacement,” Julie Schneider, director of the city’s Housing and Revitalization Department, wrote in a memo last week to City Council members.
e Oakland University Board of Trustees has extended President Ora Hirsch Pescovitz’s contract through June 2031.
e early contract extension applies to her contract that ran through 2025 and takes e ect immediately.
e extension will enable Pescovitz to remain in place while development and implementation of a new strategic plan takes place, the university said.
“Since arriving in 2017, President Pescovitz has led Oakland University through a rapidly evolving higher education landscape,” said Bobby Schostak, chair of OU’s Board of Trustees, in a release.
“ is contract extension not only re ects our con dence in her outstanding leadership the past six years, but also rea rms our expectation that she is the right leader to guide OU through future challenges and opportunities.”
Under the terms of the new contract, Pescovitz will receive a $517,673 salary to begin and receive pay raises similar to OU’s administrative team. is year, those raises were 4%, said Brian Bierley, director of media relations, university communications and marketing for OU.
In past years, the university’s president was evaluated and received raises at the discretion of the board.
— Sherri Welch
4 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
REAL ESTATE INSIDER
Kirk Pinho
The Cornerstone Barrel House restaurant and bar downtown ended an eight-year run at the corner of Woodward and John R earlier this year, making it the latest tenant to depart the Shinola Hotel block. KIRK PINHO
Developers would be required to set aside below-market units
“These amendments will future strengthen the ordinance.”
Mary Shef eld, president, Detroit City Council
By Nick Manes
Detroit City Council member Mary Shef eld sponsored the ordinance adding new affordable-housing requirements. AP
To Dan, Jennifer and the Gilbert Family Foundation:
With courage, vision and exceptional generosity, you have helped us advance our goal of building a world-class academic medical campus in the heart of Detroit, changed the course of rehabilitation in the region and catapulted the world toward a future cure for neurofibromatosis.
Your transformational gift will impact families around the world and is a tribute to your ongoing effort to improve the lives of Detroiters. By partnering together, we believe our communities will realize quicker recoveries and improved quality of life. Additionally, you’ve removed financial barriers to rehabilitation care for those in need, who might otherwise lack access.
Further advancing the spirit of innovation and discovery this city is known for, you’ve also established the Nick Gilbert Neurofibromatosis Research Institute. Together, we will build a one-of-a-kind research and treatment facility in Detroit that will one day cure the incurable.
On behalf of our Board of Trustees, Executive Team, 33,000 team members and those we serve, thank you for partnering with us toward a healthier tomorrow. Your compassion and grit inspire us all.
henryford.com
Taking stock as Homecoming marks 10 years
Ten years can go by quickly. But at the same time, that decade can also produce stunning changes.
In this issue, we look back at some of the changes that have ties to one of Crain’s signature annual events.
Detroit Homecoming, which Crain’s produces, has a simple concept: Find successful metro Detroit natives who have transplanted elsewhere. en bring them back to their hometown and immerse them in the whir of activity and change that is Detroit. e hope was they’d choose to get involved in the city again in some way.
At rst, the pitch to the “expats” was almost like a 9-1-1 call for help. e city had just led for bankruptcy and the national media narrative about Detroit was bleak: Streetlights that didn’t work, a government that didn’t function, a city in a death spiral. at was far from the complete picture, and Detroit Homecoming set out to show the expats the positive energy in Detroit — the emerging downtown rebound led by Dan Gilbert, a urry of entrepreneurship in the city, and creative and exciting ways that Motown was nding new life.
e expats have responded. And the Detroit narrative has changed drastically, as
has Homecoming’s sales pitch. With a gleaming downtown lled with activity, expats now see a city totally on the move, with historic buildings being reno-
vated, a skyscraper going up, new life in many of the city’s neighborhoods — something they de nitely don’t want to miss out on.
is week, we examine 10 big “outcomes” and what they have meant for the city. Some are investments by big-name expats, some are connections made that led to partnerships destined for great things, some are directly philanthropic.
We don’t claim Detroit Homecoming was the only factor in these outcomes, but the ties to the event are clear in each case.
Crain’s is proud to have had the opportunity to help nurture and grow this annual event. Credit goes especially to Jim Hayes, the former Fortune magazine publisher whose idea Homecoming was; and former Crain’s Group Publisher and current Homecoming Director Mary Kramer and Homecoming Producer Colleen Robar, a Crain Communications alum and founder of Robar PR. ey have worked tirelessly for 10 years to make the event the success it has been. Detroit Homecoming would not exist without them.
NIC ANTAYA
A host of local funders have contributed greatly to the cause and you’ll see their names throughout this issue as well.
We’re proud of this event and thought that after 10 years, it was good time to take stock and o er a summation of key stories tied to Detroit Homecoming.
A paradigm shift for businesses and artists
As an artist and an independent art curator, I am acutely aware of the challenges my peers face in their pursuit of recognition and sales within the con nes of contemporary art galleries and fairs. To truly make an impact within the art world, artists are actively seeking ways to break free from these constraints and explore new avenues. One such avenue, often underestimated but immensely promising, is the integration of art into the business sphere.
Displaying art within businesses o ers more than just aesthetic appeal; it is a game-changer for artists. It provides them with exposure, sales opportunities, elevates their practice, and enhances their reputation in the art world. Furthermore, it breathes life into businesses, enriching their atmosphere and fostering community engagement and support for local artists.
For artists, venturing beyond gallery walls can be transformative, introducing their work to a diverse audience and opening doors to networking and collaborations. Displaying art in businesses becomes a creative milestone, waiting to unfold.
For businesses, purchasing art from local artists is not merely about aesthetics; it is a statement of commitment to the community and an investment in its vibrancy. Supporting local artists sets businesses
apart, creating a unique brand identity and fostering goodwill. Artwork plays a pivotal role in conveying a company’s essence, encapsulating its values, history, and future aspirations. It serves as a visual emblem that resonates with both customers and stakeholders, creating a lasting impression that transcends words. Whether through sculpture, wall art, or photography, art communicates the heart and soul of a business, forging a connection that surpasses products and services. It is a powerful tool for shaping and strengthening a company’s identity, ensuring it stands out in a crowded marketplace and leaves an indelible mark in the minds of its audience.
Local art is not a one-size- ts-all a air; it is a tapestry of diverse styles and perspectives, catering to various tastes and adding character to business spaces. It transforms workplaces into hubs of creativity and inspiration, boosting morale and job satisfaction among employees.
Displaying art within business spaces serves as a catalyst, sparking conversations, fostering constructive criticism, and providing a secure space for individuals to express their opinions. It creates a unique bonding experience, bringing people together through shared appreciation and dialogue.
e presence of art within a business environment has a profound impact on
employees, igniting inspiration, sparking creativity and innovation, acting as a soothing balm to reduce stress, and enhancing well-being, ultimately leading to increased productivity. Moreover, art fosters collaboration, serving as a catalyst for discussions and idea-sharing.
However, it is not just about businesses; it is also about the artists. is support empowers artists, providing the nancial backing they need to pursue their passion, encouraging talent development within the community, and diversifying the artistic styles available to businesses.
Corporate art collections re ect a company’s goals and aspirations and come in various forms, each serving a unique purpose. Specialized collections convey speci c messages or commitments, while site-speci c collections incorporate surroundings, history, and architecture, aligning with the company’s ethos. Loan collections o er a dynamic way to showcase art, driving sales and recognition.
Foundation collections extend beyond art; they support nonpro t organizations and charitable causes, with art acquisitions through local art events hosted by these organizations o ering a win-win opportunity.
Additionally, student-founded collections nurture budding artists during their academic journey.
Starting a corporate art collection is a meticulous endeavor requiring careful
planning and a clear sense of purpose. Many businesses seek the assistance of curators for guidance in this undertaking. Curators play a pivotal role in locating, procuring, and cataloging artworks purchased for the collection. ey ensure that each piece is impeccably displayed, aligns with artistic goals, and adheres to budget constraints. eir extensive research and established relationships with artists can be instrumental in identifying artworks and artists that resonate with a company’s vision. Additionally, exploring diverse art forms and types of collections is advisable to nd what best suits a company’s character and objectives. With thoughtful planning and a genuine commitment to the world of art, a corporate art collection can be established to enrich the workplace and communicate a profound message about a company’s values and culture.
Art transcends; it is a living, breathing force that can transform businesses and communities alike. Artists use this avenue to broaden their horizons, while businesses consider the manifold bene ts of integrating art into their spaces. Together, we can amplify the power of art, creating a richer, more vibrant community for all.
6 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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. EDITORIAL 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.
COMMENTARY
Amanda Koss is an artist and independent art curator.
Supporting local artists sets businesses apart, creating a unique brand identity and fostering goodwill.
Stalled project The Mid given second extension
By David Eggert and Kirk Pinho
LANSING — Lawmakers on Tuesday extended another lifeline to a long-stalled development in Detroit, giving e Mid’s developers until the end of 2026 to complete roughly half of the 15-story building to qualify for nearly $9 million in state brown eld credits.
e Senate approved legislation 29-9, less than a week after it was passed by the House 74-33.
New pilot program targets food safety
By Jay Davis
Detroit City Council member
Scott Benson’s crusade for a change in the city’s food safety ordinance policy will continue with a new pilot program aimed at making diners directly aware of a restaurant’s standing.
Benson in conjunction with the Dining With Condence Coalition, is looking for Detroit restaurant owners to voluntarily participate in a pilot program focusing on inspection placards that would be placed at or near the entrance of participating restaurants.
e pilot, which is slated to run from October 2023 to March 2024, will help determine how a potential restaurant inspection placard system would work in Detroit, according to a news release. Benson has pushed for the establishment of the placard system for some time. Detroit City Council in November 2022 voted down an ordinance proposal centered on the placards.
Benson’s latest e ort is independent of city council and is not a legislative action.
Restaurants that volunteer for the project will receive a routine inspection from the Detroit Health Department. Participating restaurants that pass the inspection with no serious violations would earn a green placard to display their compliance status. ey can also earn that status by correcting any violations during that routine inspection or a follow-up inspection.
No restaurant will receive a placard until it is compliant, according to the release.
“Customers should be able to walk into a restaurant and know that it has passed an inspection and is adhering to food safety standards,” Benson said in a statement.
e coalition recently renewed a push for a food safety initiative in Detroit that includes transparency regarding a dining establishment’s compliance with state food safety guidelines.
Coalition member and Detroit restaurateur Phil Jones of Farmacy Foods in a statement said diners in the city should be able to quickly see if the restaurant they visit is compliant or not.
“...and operators need to be applauded for caring about the health and safety of visitors and residents of the city,” Jones said.
Benson’s push for a new ordinance was halted with last fall’s 6-3 council vote against the proposal. Initially, Benson had hoped for colored placards indicating a restaurant’s compliance level to be placed near the entrance of all of Detroit’s more than 1,700 restaurants. He shifted to a QR code late in the process. at project was expected to cost about $200,000 a year with funds coming out of the city’s general fund, according to Benson. e $200,000 would cover salaries and bene ts for 2.5 employees, along with administrative and operating expenses, according to Barb Roethler, director of marketing for the city Health Department. Detroit Chief Public Health O cer Denise Fair Razo previously told Crain’s the health department is budgeted for 17 health inspectors.
Benson in an email to Crain’s last week said his sta is working with the city health department on the program. He’s not seeking a new ordinance.
“ is is the activation of restaurants who want to show o their ability to prepare and handle food safely in our neighborhoods,” Benson said.
All Detroit restaurants are inspected at least once each year. Restaurants, bars and other food service businesses are to be inspected twice a year for higher-risk establishments, and once a year for lower-risk establishments. e risk level is based on complexity of food preparation.
Benson originally called for the system to be implemented in 2019 following a three-year hepatitis outbreak in some metro Detroit restaurants.
e Mid, north of the Whole Foods store at Woodward and Mack avenues, was due to lose the subsidy if seven stories were not nished by ursday. Democratic Gov. Gretchen Whitmer was expected to sign the measure giving the developers three-plus years to meet the progress benchmark, House Bill 4829.
ose backing the $377 million project have said the credits are needed or else it dies. It is the second time legislators have lengthened the deadline. ey also did so in 2021. No construction has taken place.
Emery Matthews, a development adviser on the project, told a House committee in June that the COVID-19 pandemic had caused the most substantial delays, particularly on nancing. e bill sponsor, Democratic Rep. Abraham Aiyash of Hamtramck, has said he will never again ask for an additional extension.
Mohammad Qazi, the president and CEO of South eld-based Ciena Healthcare, paid $15 million for the land in 2018 and is working with Matthews on the development. e Mid’s seven oors of a 15-story hotel were to total $50 million in investment on a $164 million rst phase of the project.
e project, which has also been approved for $58 million in brown eld tax-increment nancing, has been one of the more ambitious formally proposed in the city in the last several years, along with proposals and other projects under construction by Dan Gilbert, the billionaire mortgage and real estate mogul. ere also are large-scale plans by Related Cos. and Olympia Development of Michigan. When it was rst unveiled in 2019, e Mid’s plan included a
25-story hotel and condominium tower and a 30-story residential tower, plus other buildings with more residential and retail space, parking and green space. ey would be among the tallest buildings built north of Mack Avenue since the 1920s. e project has gone through several incarnations, with varying mixtures of hotel, residential, co-living, retail, commercial, parking and green space.
However, like other ground-up developments in Detroit, including some of Gilbert’s projects and other, smaller plans throughout the city, e Mid has faced challenges ranging from nancing to a shifting condo market to labor and materials costs to the impact of the pandemic, all of which have contributed to the lack of progress. e precise scope of the project now is not known.
SEPTEMBER 18, 2023 | CRAIN’S DETROIT BUSINESS | 7
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Legislation passed by the Legislature would give developers three more years to qualify for tax credits for The Mid development in Detroit. KIRK PINHO
OUTCOMES FOR 10 YEARS
DETROIT HOMECOMING
A sampling of expat investments
Some areas that have seen investment or other actions from expats who have attended Detroit Homecoming, based on 107 respondents to a survey of attendees conducted by JFM Consulting Group.
9
As expat gathering returns, outcomes total more than $1 billion — and counting
In 10 years, Detroit Homecoming has brought many metro Detroit expats back to their roots. And that’s helped make things happen in Detroit.
Homecoming is an annual event produced by Crain’s Detroit Business. Returning this week Wednesday-Friday, the gathering aims to bring successful Detroit natives back to their city with the aim of re-engaging them with their hometown. Over its 10 years of existence, Crain’s has told many of the stories of the more than 950 expats who have attended.
In the honor of the anniversary, this section looks back at 10 outcomes that arose from these gatherings. Some are huge and involve big names, including real estate developer Stephen Ross and former Microsoft Corp. CEO Steven Ballmer — both metro Detroit expats. Some are smaller. All were linked in some way to connections
Detroit Homecoming highlights
Detroit Homecoming X runs Wednesday-Friday. You can follow coverage of the invitation-only event on crainsdetroit.com and read a wrap-up in next week’s issue.
Highlights of this year’s program include:
w A reside chat with Rocket Companies Inc. Chairman Dan Gilbert.
w A reside chat between Detroit Mayor Mike Duggan and JPMorgan Chase
Vice Chair Peter Scher.
w A talk by Detroit Pistons great Isiah Thomas.
w A discussion of innovation and entrepreneurship with University of Michigan President Santa Ono and Duo Security co-founder Dug Song.
w A look forward to the 2024 NFL Draft in Detroit, a discussion with out-oftown chefs who came and made Detroit their home, and more.
and experiences tied to Homecoming.
Putting a dollar gure on investments inspired by Homecoming is tricky, because every large investment has many inspirations and partners. But just the completed investments and donations identied in this section as having strong
Homecoming ties top $1 billion. Planned projects by partners who linked up at Homecoming and countless smaller actions would bring the total to more than $4 billion.
e impact of those actions spans the city, based on a sample of Homecoming attendees sur-
5
veyed.
A study commissioned by Detroit Homecoming and conducted by JFM Consulting Group quantied some of the impact.
More than 90% of the 107 survey respondents reported taking some action on behalf of their hometown after attending the event, with more than half reporting taking multiple actions.
Among those actions: Nearly half of respondents reported making charitable contributions, 25% reported expanding their businesses to Detroit and 23% reported making a commercial investment in the city.
Asked where their actions were directed, expat respondents identi ed neighborhoods spanning the city, with a few in the suburbs, from downtown to Brightmoor to Je erson Chalmers to the University District (see complete list at right).
8 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
Downtown
Corktown
6
Northwest 4 Liv 6 Midtown Southwest 3 Brush Park East English Village Indian Village North End
Brightmoor Eastern Market Grosse Pointe Islandview Jefferson Chalmers New Center 1 Arden Park Barton McFarlane/ Aviation Subdivision Canton Cultural Center Downtown East Village LaSalle Gardens Martin Park Mid City Midwest University District/Marygrove Royal Oak Villages Waterford Woodward WSU
2
ECKLES
AARON
Here’s to a great city, and the people who make it greater. General Motors is proud to support Detroit Homecoming as we come together to celebrate the Motor City’s legacy and collaborate for its vibrant future. gm.com ©2023 General Motors. All Rights Reserved.
From a dinner to a deal to a vision: Michigan Central gathering opened doors
On Sept. 13, 2017, Detroit Homecoming held its kicko dinner in perhaps the most recognized symbol of the city’s decades-long decline: e dilapidated Michigan Central Station.
Exactly a month later, Oct. 13, Matthew Moroun, the third-generation leader of the family that owned the train station, had the rst meeting that would result in a big deal and a bigger renovation.
Fast forward nine months and Ford Motor Co. had become the new owner, having paid the Moroun family $90 million as it started embarking on what would ultimately become what is now the Dearborn-based automaker’s nearly $1 billion autonomous and electric vehicle campus.
Matthew Moroun in his statement announcing the sale thanked Keith Crain for holding the Detroit Homecoming dinner at the station.
e now ve-year e ort to restore the Beaux-Arts depot, vacant since 1988 when Amtrak stopped service there, is now nearing fruition.
Ford also bought a former Detroit Public Schools Community District book depository building, which reopened this spring after a years-long renovation, plus, in later years, other properties around the area.
Moroun declined to be interviewed.
Work continues on the depot, which opened in 1913 and has about 500,000 square feet across 18 oors. It is expected to nish construction in late spring or early summer, a Ford spokesperson said.
Ultimately, the depot will house a mixture of Ford employees as well as others and have an as-of-yet undetermined hotel brand taking the top couple oors. e train station is to be the centerpiece of the campus.
In the old Albert Kahn-designed book depository — which was once a U.S. Post O ce building — Newlab has built its new Detroit headquarters and its Mobility Studio, where tech and mobility companies can set up shop. Some 1,100 to 1,400 people are expected to work out of the building.
Ford has also purchased other properties in the area recently, including a portfolio that includes 1.1 acres and three buildings totaling nearly 29,000 square feet, as well as the Assemble Sound portfolio that consists of a historic church dating back a century and a half plus two other properties at 17th Street and Rose Street.
e automaker’s arrival to Corktown has been one of the catalysts to a slew of new development in the area.
Developers have built new restaurants, a brewery, hotels and multifamily housing like apartments, townhomes and condos, and the city received a large grant from the U.S. Department of Housing and Urban Development to help fuel the development of more than 800 units of new rental housing — primarily a ordable housing — in the neighborhood and to the north.
10 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
Kirk Pinho
Renovations by Ford Motor Co. since its 2018 purchase of Michigan Central Station have cleaned up its surroundings and given its exterior a clean, fresh look. | NIC ANTAYA
The train station and its decrepitude became symbolic of Detroit’s decline since its closing in 1988. At center, Matthew Moroun announces its sale. | GETTY IMAGES AND CRAIN’S FILE PHOTO
Guests dine in the pre-renovation Michigan Central Station at Detroit Homecoming in 2017. | AARON ECKLES
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Ballmers put grant focus on metro Detroit
Sherri Welch
Less than a year after attending Detroit Homecoming III in 2016, retired Microsoft Corp. CEO Steve Ballmer and his wife, Connie, opened a philanthropic o ce in Detroit to focus on economic mobility for children and families in the region.
eir donor-advised fund, the Ballmer Group, has awarded more than $101.8 million in Southeast Michigan since then.
e couple’s experience in the city during Detroit Homecoming III was pivotal in drawing their philanthropic eye to the region, Steve Ballmer said during a Q&A with Dan Gilbert, chairman of what is now Rocket Cos., that year.
“I really got red up today,” Ballmer told the crowd at Detroit Homecoming that year. “I’m a believer. I’m charged up. I think the things that people are talking about can happen. It will take tremendous energy and intelligence to make it happen, but I’m excited.”
Earlier that day, the Ballmers had spent four hours with Mayor Mike Duggan and city leaders, touring downtown and the Livernois and McNichols area. And in an interview that followed, Ball-
mer told Crain’s Detroit Business that Detroit would very likely bene t as the couple sought to ght intergenerational poverty through their philanthropy.
“After this, we will keep our eyes a little more focused on Detroit. I live in Seattle, but this is my home,” said Steve Ballmer, who was born in Detroit and graduated from Detroit Country Day School in Beverly Hills.
e Bellevue, Washington-based Ballmer Group hired Kylee Mitchell Wells as founding executive director of its Detroit o ce by fall
2017 and made its rst round of grants a year later.
e grants, made to 99 nonprofits through mid-August, are aimed at increasing economic mobility for children and families, providing support for e orts with demonstrated ability to reshape opportunity and reduce systemic inequities in early childhood, K-12 and post-secondary education, housing and other areas, mirroring the approach taken by the two other Ballmer Group teams in Washington state and Los Angeles County, where Ballmer’s NBA franchise, the Los Angeles Clippers, play.
“We have the ear of the grassroots but then also have the grass tops. I think that’s what makes Ballmer Group unique as a philanthropy here in Southeast Michigan, for sure,” said Wells, former Detroit market senior director for the Columbia, Md.-based nonpro t Enterprise Community Partners, which helps low- and moderate-income people nd a ordable housing and supports poverty alleviation e orts.
When it comes to economic mobility, “we believe that our small piece in this bigger ecosystem, we’re lifting up those grant-
ees...(and their) success stories ... to the voices and entities that matter so that they can make informed decisions,” Wells said.
e Ballmer Group’s early grants in the region focused on improving the quality of life for children and families, strengthening neighborhoods and working with local government and on public policy issues.
From there it has expanded its support to K-12 and post-secondary education initiatives through grants to school districts in the region, including a $5.9 million grant to Detroit Public Schools Community District for a new student data portal and other funding to support the launch of behavioral, physical and dental health hubs inside 12 schools to help keep students healthy and in class.
It is working with Oakland, Wayne and Macomb county governments to leverage direct public support and resources to school districts within their locales, Wells said, and coming alongside them to support issues in the schools with grants like $2.5 million to Communities in Schools of Michigan to expand its work to help students overcome barriers to at least 5,000 more per year in current
partner school districts and expand it into new Oakland County school districts.
At the same time, Ballmer Group is supporting e orts to spur people on to college and into career tracks through grants to initiatives like the Detroit Drives Degrees Community College Collaborative, in partnership with the Ralph C. Wilson Jr. Foundation, local community colleges and the program’s administrator, the Detroit Regional Chamber.
Collaboration has gured prominently in the donor-advised fund’s approach. It has a seat at the table for many groups, including the Pontiac Funders Collaborative, a group of corporate and private funders, to support development of community-driven goals and build the capacity of local leaders and public and private groups working in small business growth, economic mobility, public spaces and education in Pontiac.
“Impact to me is when you can get authentic collaboration” from the public and private sectors not just meeting but coming together to think about strategy, hear from the boots on the ground about the acute needs and then put money behind them, Wells said.
12 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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freedom of expression and in the values expressed in the First Amendment to the Constitution of the United States.
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engaged, equitable and inclusive communities.
DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
AARON ECKLES
Retired Microsoft CEO Steve Ballmer spoke at the third Detroit Homecoming in 2016. |
An industrial, innovative and intellectual powerhouse we call home.
At the very start of Urban Science, we saw Detroit overflowing with automotive industry data to be mapped, networks to be planned and the opportunity to help bring the city that drove the world into a new future. 46 years and 10 Homecomings later, we’ve never been prouder of taking that opportunity. Weaving technology into Detroit’s story has been our honor. And as the city enters its newest chapter, we see it at the forefront. We’re committed to Detroit and are continually invested in expanding education and opportunities for those who are brave enough to see the vision, do the work and lead the way.
The histories — and futures — of our company and this city are intertwined. We wouldn’t have it any other way.
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DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
The friendship ‘spark’ that led to Henry Ford, Pistons partnership
Dustin Walsh
In the fall of 2015, the city of Detroit had emerged from bankruptcy 11 months earlier, construction on a new Detroit Red Wings arena had begun and two new-to-town heavy-hitters that would change the course of Detroit’s future would meet for the rst time.
is blossoming friendship would result in nearly $3 billion of promised investment in the city in less than a decade.
Wright Lassiter III, the newly hired CEO of Henry Ford Health
and star college basketball player at Le Moyne College in New York (under future University of Michigan coach John Beilein), was invited to moderate a panel on sports’ impact on racial issues at Crain’s second annual Homecoming event in late September.
Another new face was invited to be on the panel — Arn Tellem, vice chairman of the Detroit Pistons who had moved to Detroit in August. Tellem, of course, was a natural t after a 34-year career representing some of the country’s largest
Our business is caring for yours.
professional blue-chip athletes, including Kobe Bryant, Reggie Miller, Tracy McGrady, Russell Westbrook, Ben Wallace and dozens more.
“It was literally the second week after I had moved to town,” Tellem said. “Wright had only been there for a few months and we’d met backstage the day of the event. I immediately took a liking to him. We shared that common experience of moving to Detroit and trying to make ourselves a part of this community. Homecoming was the spark that brought us together.”
At that time, the city and its residents were leaning on the Pistons’ new owner Tom Gores to move the team back to downtown from Auburn Hills — the storied NBA franchise left its downtown home at Cobo Arena following the 1977-78 season. Lassiter broached the subject with Tellem immediately.
“He promised me he wasn’t going to ask me (on stage) about the elephant in the room, whether we’d move downtown,” Tellem said.
But wheels were in motion. A year later, Gores announced the Pistons would move to Little Caesars Arena for the 2017-18 season.
ree months after that announcement, the Pistons struck a deal with Henry Ford Health — thanks to the friendship between Tellem and Lassiter — choosing the Detroit health system as the team’s o cial health care provider and agreeing to jointly construct a $90 million 100,000-square-foot practice facility and the team’s corporate headquarters in New Center, across Amsterdam Avenue from its own headquarters. e Henry Ford Detroit Pistons Performance Center opened in 2018 and also serves as the home for the health system’s sports medicine division.
“A year after we rst met at Homecoming, we had a pivotal breakfast at the Townsend (Hotel) in Birmingham,” Tellem said. “As I was exploring the move downtown and talking to partners, Wright really laid out his ideas of development, growing Henry Ford to be nationally competitive and a destination for health care. at really aligned with our goals. We didn’t just want to play our games at Little Caesars Arena. Our vision was to make an impact and be a partner in the community. at meeting and our partnership with Henry Ford was instrumental for our move.”
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But the pair were not done scheming.
Lassiter wanted to raise HFH’s image from regional system to national player on the same line as Mayo Clinic, Johns Hopkins and Cleveland Clinic. Tellem wanted to continue the Pistons’ commitment to the city.
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14 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association.
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Ross turns focus to development in Detroit
By Kirk Pinho
Detroit Homecoming played a part in getting Stephen Ross to develop in his hometown.
e billionaire who runs New York City-based Related Cos. as its founder and chairman said last year that the annual event for expats has drawn him back to Detroit, where he was encouraged by some to start developing.
At rst, that came in the form of a plan now called the University of Michigan Center for Innovation, which is to o er academic programming in things like robotics, computer science, technology and arti cial intelligence, among others.
“I could see how Detroit was developing and it got to a point, I was speaking with Mayor (Mike) Duggan, and I suggested this idea (for the UMCI) because I was on the board of Cornell Tech, which is a similar type school,” Ross told an audience at the Mackinac Policy Conference in the spring 2022. “I thought this would be a great economic development tool for Detroit. He thought this is just the perfect time, it would be great. I approached the University of Mich-
igan, (then-President Mark Schlissel), with the idea and he loved it. We all got together and got behind it.”
Ross was not available for an interview prior to press time.
What is now the UMCI — when it was rst announced in 2019, it was referred to as the Detroit Center for Innovation — has not yet started construction, although when state lawmakers agreed to subsidize it with a $100 million earmark last year, they included a provision requiring it to start this year in order to get the money. Ross has also personally committed to giving $100 million toward the $250 million cost.
e project has also gone through changes, in particular the location.
It was rst proposed to go on the Dan Gilbert-owned site on Gratiot Avenue that used to house the halfbuilt Wayne County Consolidated Jail, which has since been razed.
However, Gilbert’s team and Ross’ team ran into development disagreements. Where Ross and Gilbert split at the jail site were fundamental development issues like building orientation, sight lines, site entrances, interconnectivity and accessibility and other issues —
and how all of those impacted the remaining Gilbert land, according to a source familiar with the discussions at the time.
By the summer 2021, it was reported that Ross and the Ilitches were in negotiations to relocate the development to the District Detroit area on property west of the Fox eatre owned by the Ilitch family.
In December 2021, Related and the Ilitch family’s Olympia Development of Michigan, plus state and local o cials, announced that the building would be moved to a nearly four-acre site that also includes the Loyal Order of the Moose Lodge building.
Last year, Ross and Ilitch revealed an expanded vision for the area around the UMCI, which included a host of new and redeveloped buildings — including many which had long been on Olympia’s drawing boards in the District Detroit but which hadn’t come to fruition.
In all, Olympia and Related are proposing $1.53 billion in new construction across 10 new or redeveloped buildings, bringing 1.2 million square feet of o ce space, 695 residential units (nearly 140 of which would be considered a ordable), more than 146,000 square feet of retail and 467 hotel rooms to the District Detroit area.
Over the course of this year, some $800 million in public money has been awarded to the projects, including $616 million in state transformational brown eld funding. Other public funding includes $37 million in Neighborhood Enterprise Zone tax breaks for four properties and $96 million in Commercial Rehabilitation Act tax breaks for four other properties. In addition, there has been $48.75 million in Downtown Development Authority funding that has already been approved for more a ordable housing at deeper Area Median Income
thresholds ($23.75 million) and up to $25 million for road improvements, utilities, security and public space upgrades for the area. If the developments don’t come to fruition, the public money does not go to the developers.
e rst new building — a large o ce tower in front of Comerica Park — is planned to start construction this year, but a previously announced window to start has come and gone as nal land acquisition has yet to be completed. Construction also has not yet started on the UMCI.
16 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 are bringing their
the city of See how on our TikTok @kidsmatterhere
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Stephen Ross
DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
A rendering of the proposed University of Michigan Center for Innovation. PROVIDED
Huntington Bank: Supporting the Revitalization of Detroit
Driving the city’s renewal through affordable housing, small business lending, community development
Huntington is a proud sponsor of Detroit Homecoming and a proud supporter of Detroit’s economic and social revitalization. Our commitment to Detroit is rooted in the fact that this city has enormous potential, and hundreds of thousands of citizens working together to help it achieve that potential.
Our support for this revitalization closely aligns with our $40 billion Strategic Community Plan, which is focused on strengthening small businesses and fostering economic equality in under-resourced communities. Our commitment focuses on three areas, and we’re working hard in Detroit to address each of these needs.
Affordable mortgages
First, we know that for far too many people, the dream of homeownership has been out of reach, and we have committed to providing $24 billion in affordable mortgage lending. Earlier this year in Detroit, we launched Huntington Home for Good, a new offering designed to meet the needs of mortgage applicants
from historically under-resourced communities. Home for Good offers a number of a number of enhancements, including lower down payment requirements, loosened debt-to-income requirements and closing cost assistance.
Small business support
Second, we’ve seen communities, especially in and around Detroit, struggle because the small businesses they rely on have failed. That’s why we’ve expanded our small business lending programs and committed to lending $10 billion in this area, including $2 billion to business owners from diverse backgrounds. Here in Detroit, our Lift Local Business program is supporting minority-, woman-, and veteran-owned small businesses through loans, business planning support, free nancial education courses and other services to help small business owners achieve their goals.
Neighborhood investment
Finally, our commitment is focused on lending and investments in community development. As part of this pledge, we
have dedicated $5 million to the Strategic Neighborhood Fund, a city-led initiative funded by multiple corporations to improve parks, streetscapes, commercial corridors and availability of single-family housing.
These are just a few of the many ways Huntington is supporting communities in and around Detroit. For more information, please visit huntington.com/Community.
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The Huntington National Bank is an Equal Housing Lender and Member FDIC. ⬢ ®, Huntington® and ⬢ Huntington® are federally registered service marks of Huntington Bancshares Incorporated. © 2023 Huntington Bancshares Incorporated.
17 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 SPONSORED CONTENT
REBUILDING DETROIT - DETROIT HOMECOMING X
Tech entrepreneur sees opportunity in Detroit real estate
Couple brings marketing rm to state
By David Eggert
After attending the rst Detroit Homecoming in 2014, tech entrepreneur Brian Razzaque was so inspired that he immediately bought a house near Indian Village for $25,000.
For $5,000 more, he got a vacant lot next door.
He did not want to “miss out.” He had had some experience renovating and ipping houses in Baltimore, where he founded SocialToaster, which helps businesses and other clients boost the sharing of their content on social media. But his initial endeavor in Detroit was bumpy — termite damage meant it would cost tens of thousands of dollars to replace a support beam.
“I’m like, ‘Well, maybe I’m in over my head on this one,’” he said. “So I said, ‘Let me sell, let’s regroup, maybe come in with a bit more cohesive plan on this.’ But in the seven or eight months where I had owned it, where we’d started this work, the property had doubled in value. ... at really was what sort of convinced me that there’s something going on here
and I need to stay involved.”
Razzaque, 45, purchased some duplexes in the city and rented them to tenants with the help of a property manager. At the next Homecoming, he told others what he was doing. ey wanted to get involved.
Investors contributed about $1 million to buy 10 duplexes through a real estate company he formed to facilitate the partnership, Detroit Residential Properties. When emerging from the “very, very, very challenging” pandemic, he said, the group decided to start downsizing its portfolio. e properties doubled in value, if not more.
“ at, combined with some of the challenges through COVID and cash ow issues related to the lack of rents, etc., made it compelling for us to take advantage of the gains that we’ve seen,” Razzaque said.
Ten of the entity’s 14 houses — he also contributed the ones he purchased to the partnership — have been sold. Once the remaining four are sold, he and his partners may explore buying and rehabbing apartment buildings or
commercial properties.
Razzaque, who grew up in Dearborn, moved back to Michigan in 2018-2019 to be closer to family. He, his wife Sarah — also a native of metro Detroit — and their two children live on Lake Angelus.
He ies to Baltimore once a month to do work related to SocialToaster. She runs BrandTrellis, a former web development business that the Razzaques bought in 2018 (they had previously owned
it) and restructured and rebranded as a lead generation company primarily for tech companies. It is based out of Michigan and employs eight people.
He has attended every Homecoming.
“It’s one thing to just sort of show and tell and talk about how great some place is, and show there’s fun things happening, there are cool people here,” he said. “But it’s a very di erent thing to translate ‘this is a nice place to
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In February this year, the ultimate vision of the two was announced. A sprawling $2.5 billion development that would result in the construction of a new $1.8 billion HFH hospital on West Grand Boulevard, a redevelopment by the Pistons of HFH’s 610,000-square-foot headquarters into a residential complex, a new mixed-use residential and retail building and a $150 million research institute shared by HFH and Michigan State University.
“We knew the Performance Center was just phase one,” Tellem said. “We had said if that partnership was successful, we’d do more.”
However, that announcement and celebration happened without Lassiter. In July last year, Lassiter left HFH to become the CEO of the $33 billion Chicago-based health system CommonSpirit.
Robert Riney, new CEO and longtime executive at Henry Ford, has taken over carrying out the vision.
“It’s a shame he moved, he was the Jack Nicholson of the Pistons games, sitting center court on the oor near the bench,” Tellem said.
“He was one of our biggest fans.”
Nevertheless, the project is
visit’ vs. ‘we actually want to do something here.’
“ e key word to me is opportunity. Detroit did a good job, and Detroit Homecoming did a good job, of demonstrating that there were really compelling opportunities and furthermore that potentially the window for those opportunities, to take advantage of them, was short. You either got in now but if you slept on it you might miss it. at largely turned out to be true.”
moving forward. e Pistons are expected to begin construction in late 2024 or early 2025. e total project, including the new HFH hospital, is expected to be completed in 2029.
On Sept. 6 this year, the Gilbert Family Foundation and Dan and Jennifer Gilbert announced they would contribute $375 million toward the creation of an outpost of the Chicago-based Shirley Ryan AbilityLab at the new hospital, as well as a research center dedicated to the genetic condition neuro bromatosis. e full Henry Ford campus project will be the largest, in terms of dollars, in Detroit’s history.
“Homecoming, having been to hundreds of conferences, was the most productive conference and most productive meeting that’s come out of a conference in my career,” Tellem said.
18 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 @the.michiganlife @themichiganlife @themichiganlife @themichiganlife T:6"
T:6"
Arn Tellem Wright Lassiter III
“We knew the Performance Center was just phase one.”
DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
Arn Tellem, vice chairman, Detroit Pistons
Brian Razzaque at one of his properties in Detroit. | NIC ANTAYA/CRAIN’S DETROIT BUSINESS
to
10 Years of Homecoming to Move Forward into Detroit’s Future
Supporting Detroit’s Talent and Technology for an Equitable Future
At the W.K. Kellogg Foundation, we’re proud to have invested $222 million over the past 10 years in nonprofits working toward lifting up children and families in our Detroit community. Our employment equity investments, in particular, have helped our grantees and partners expand support for businesses owned by women and people of color and empower talented people to access quality jobs that can help them build career pathways and wealth.
Some exciting impacts:
The Entrepreneurs of Color Fund, managed by Detroit Development Fund, has now made more than $18 million in low interest loans to support small business owners in Detroit, helping to create and retain nearly 2,200 jobs and occupying 260,000 square feet of previously vacant commercial space.
$18 MILLION PEOPLE OF
Since its launch seven years ago, Building Community Value has hosted 376 participants in 13 cohorts of their Better Buildings, Better Blocks course, a nine-month property development training program that educates entrepreneurial Detroiters on the small-scale real estate development process.
TRAINING
7,235
wkkf.org @KelloggFoundation kelloggfoundation Twitter: @WK_Kellogg_Fdn Detroit Office Fisher Building 3011 West Grand Blvd. Suite 321 48202
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Looking Back at 10 Years of Homecoming
Move Forward into Detroit’s Future
Connections help stitch together a fashion foothold
Sherri Welch
Detroit Homecoming has helped spur the growing fashion industry in Detroit.
Two metro Detroit natives who made their name in fashion design moved back to the region after attending Homecoming.
And early conversations about creating a fashion hub in the city helped to open up networks for the e ort now operating as the Industrial Sewing and Innovation Center, the only institute for the sewn trades in the U.S.
Je ry Aronsson, a native Detroiter and former president and CEO of Donna Karan International Inc., developed the idea to create a fashion hub in Detroit after attending Detroit Homecoming in 2016. He spent a year working on the initiative and presented on it, with other design leaders, during the 2017 Detroit Homecoming.
He was tapped by Detroit Mayor Mike Duggan to lead e orts aimed at scaling growth in the city’s edgling fashion industry and attracting bigger-name designers to the city. Aronsson had a grand idea to create a fashion and manufacturing hub “from dirt to shirt,” with everything, including growing the cotton, here, said Jennifer Guari-
no, then vice president of manufacturing at Shinola/Detroit LLC.
She was leading a parallel e ort, the push for a national institute for the sewn goods that would provide training and apparel production.
ey and other fashion industry stakeholders met to discuss their visions and the idea of Detroit as a fashion hub during a meeting at the Detroit mayor’s mansion that fall.
“We got together, looked at our e orts and introduced him to a ton of people here,” Guarino said.
While his vision didn’t carry forward, the national institute did. Launched in spring 2020 to produce medical gowns during the height of COVID, ISAIC is now piloting manufacturing innovations in sustainable, low-waste apparel manufacturing.
Aronsson “created a really signi cant conversation and brought attention to this issue and really started making us explore and think about fashion and design in a di erent way than had always been imagined,” said Lisa Katz, senior program o cer, economic vitality and entrepreneurship at the William Davidson Foundation, one of ISAIC’s rst funders.
Guarino picked up where Aronsson left o , she said. Aronsson
had been tied into a group of fashion and design companies in the region like Detroit Denim, Katz said. Guarino “kept them together, brought them together and ISAIC has been the result.”
“Because of (Aronsson) and De-
troit Homecoming, we were able to reach out to our networks to bring the industry to Detroit (and) to make the case that this was the place to innovate,” Guarino said.
Design inspiration
Detroit natives who’ve made a name in fashion design have also returned to the city after attending Homecoming.
Detroit native and fashion designer Tracy Reese, whose designs have been carried by Nordstrom, Bloomingdale’s and Neiman Marcus, established her rst clothing line in 1998 in New York before moving her design studio to Detroit in 2018.
With the move back to Michigan, she launched Hope for Flowers by Tracy Reese, a women’s clothing and shoe line produced with sustainable fabrics. Last month, she signed a 10-year lease and moved the company to a new location in Detroit’s Midtown neighborhood.
e site includes a design and photo studio, showroom for wholesale buyers, a classroom for art enrichment classes and community workshops and an inhouse factory that will host sewing apprenticeships.
Detroit could be the next fashion hub, Reese said during a “Today Show“ interview in late March.
“Detroit is my hometown, and there’s so much possibility in Detroit. It’s a place where you can grow a business, you can make a di erence in the community. And that’s why I launched my business there, because I felt like I had an opportunity to a ect the community and to be additive to the community,” she told the “Today Show” hosts. “We also have art enrichment classes for young people because I had art all the way through K through 12, an abundance of art. ere isn’t quite as much available in public schools, so we wanted to make sure that we were o ering something for young people to do on Saturdays, where they could express themselves and nd themselves and also learn about sustainability which is something that I’m passionate about.”
Christina Liedtke, a Grosse Pointe native and Michigan State University alumna, rst attended Homecoming in 2016 while serving as director of sales at L’Oreal in New York.
After more than 15 years in sales and marketing for Fortune 500 rms including Johnson & Johnson and PepsiCo, Liedtke found her passion in fashion, launching the Christiana J. Paul ready-to-wear line of luxury women’s clothing.
She moved home during the pandemic and based her Astouri fashion brand — multi-functional designs made with travel friendly fabrics featuring licensed cityscape photography — in Detroit.
Homecoming was a huge factor in making the decision to come back to the region, she said.
You can see the landscape, architectural changes and beautication of Detroit from afar, but you can’t see the innovation happening in the local business community, Liedtke said. “When I attended Homecoming, it drove so much awareness and exposure of all the wonderful things that are happening here, because they aren’t visible to everybody.”
“What in uenced me the most about bringing my company here was seeing what other companies are doing and how much of an impact they are making ... creating jobs, making the city a better place, driving growth (and) innovating.”
Liedtke said her company is exploring opportunities to bring apparel production back into Michigan, after an earlier manufacturing relationship in Flint ended.
Having Guarino and Reese on panels at Detroit Homecoming and hearing about the work they’ve done in Detroit has been in uential on the manufacturing and design sides, Liedtke said.
Detroit is on a path to becoming a fashion center, she said. “It’s happening. It’s still going to take some time, but having in uential companies like Gucci with Gucci Changemakers (a scholarship and impact fund for grassroots organizations and young, diverse creatives) and having other big brands come here and do fashion shows and invest in the city drives the awareness.”
20 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
Jennifer Guarino, president and CEO of the Industrial Sewing and Innovation Center, or ISAIC, in Detroit | CRAIN’S DETROIT BUSINESS
Fashion designer Tracy Reese.
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After a close look, developers make big investments
Expats’ development rms take on $250M in Detroit projects
By Nick Manes
As Detroit Homecoming marks 10 years, its impact has registered with at least two developers with longtime connections to the region.
e annual event, aimed at bringing back those who grew up in the metro Detroit area but moved away for various reasons, has had a tangible impact on at least two developers with longtime connections to the region.
Principals with Method Development and Greatwater Opportunity Capital — both based in Detroit — each say the event has helped provide a necessary forum for those with deep roots in the area and ultimately helped bring people and capital back to Detroit.
“It puts you in a forum (with) other ambitious and talented people who had both emotional and physical connection to the city,”
Amelia Patt-Zamir, co-founder and principal of Method Development, said of the Homecoming events.
“Any time you can get a large group of people talking about a vision and common goal, it’s great.”
For Matt Temkin, co-founder of Greatwater Opportunity Capital — which like Method Development, has invested primarily in Detroit’s neighborhoods with myriad residential projects — the Homecoming event actually led to bringing on a new partner for the rm, Jon Opdyke, who he met at Homecoming and who eventually
joined Greatwater.
“I think there are a lot of people who are from (metro Detroit) who live elsewhere who are very interested in what’s going on in Detroit,” Temkin said. “But there wasn’t really a forum for them to connect with what was happening here. And I think Homecoming was a great forum for that.”
Patt-Zamir said her rm’s investment in Detroit equates to about $50 million over about 20 projects,
Working with JPMorgan Chase, Detroit Voltage founder Deana Neely scaled her electrical small business and won a major contract for the city of Detroit.
many in the city’s neighborhoods, but now adding to its portfolio through investments in the central business district.
Speci cally, Patt-Zamir said the development rm is getting ready to commence work on a new hotel in the Merchants Building at the corner of East Grand River Avenue and Broadway Street, as Crain’s has previously reported.
Greatwater Opportunity Capital, meanwhile, has done about $200
million in real estate projects and all of it is in Detroit neighborhoods, largely residential projects, although some have had a retail component, Temkin told Crain’s. Many of the developments have been smaller scale apartments in neighborhoods such as the North End, New Center and on the east side.
Trained as both an architect and a real estate nancier, Patt-Zamir said she was drawn back to Detroit after living in New York City and elsewhere and largely sought to build upon some of the momentum begun by large-scale developers in the downtown area such as Bedrock and the Ilitch family.
“So our investment thesis was, ‘where can we invest right outside that to have a bigger impact,’” said Patt-Zamir, noting that the rm’s largest concentration of real estate holdings today is located in the Milwaukee Junction neighborhood east of New Center.
To that end, the developer told Crain’s that the area is also known as the “Detroit Design District,” bounded by East Grand Boulevard and Milwaukee between St. Antoine and Oakland Avenue.
“Our vision is really coming to fruition,” said Patt-Zamir. “So it’s very exciting.”
22 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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Happen Participants compensated ©2023 JPMorgan Chase & Co. All rights reserved. DETROIT HOMECOMING:
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10 OUTCOMES FOR 10 YEARS
One of Greatwater Opportunity Capital’s major projects is a $27 million plan to redevelop part of the Cadillac Assembly Plant in Detroit into apartments. | CRAIN’S DETROIT BUSINESS
Amelia Patt-Zamir Matt Temkin
“There are lot of people from elsewhere who are very interested in what’s going on in Detroit.”
Matt Temkin, Greatwater Opportunity Capital
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Renowned gymnast pushes for youth center in Detroit
By Jay Davis
Detroit native and USA Gymnastics Hall of Famer Wendy Hilliard thinks now is the perfect time to rmly establish a gymnastics program in the city of Detroit.
“I think having a program would inspire a lot of girls. I work with boys, too, but they have a lot more options,” said Hilliard, a Detroit Cass Tech and Wayne State University grad. “We’re at a time when we’re watching the GOAT (Simone Biles) compete. It’s like when people watched Muhammad Ali. People shouldn’t take her greatness lightly. No one is ever going to be as good as Simone Biles, but I’d like to work with some girls to show them where gymnastics can take them.”
Hilliard, who has lived in Harlem since 2000, has run a gymnastics program out of the Kemeny Recreation Center in southwest Detroit since 2019. Hilliard in 2016 established an earlier program at Joe Dumars eldhouse that no longer operates. e low-cost/free options for some programs are offered to youth and adults. Scholarships are also available.
In Harlem, Hilliard has run a gymnastics program in partnership with the Harlem Children’s
Zone since 2011. e programs are o ered through the Wendy Hilliard Gymnastics Foundation, which since 1996 has worked to introduce gymnastics to youths in underserved communities. Between the Detroit and Harlem programs, Hilliard has worked with more than 25,000 kids, including more than 2,000 in Detroit.
“My foundation operates as the HBCU of gymnastics,” Hilliard said. “ e sport isn’t very diverse. We all know that. It’s expensive, and you have to drive the kids to practice three or four times a week because that’s what’s needed to really grasp it. Having it in urban
centers like Harlem and Detroit is important to me because it’s a great time to be exposed to the sport. Gymnastics is a fundamental sport. It helps you in other sports with exibility and other things.”
e southwest space is temporary. Hilliard would like to open a gymnastics-speci c gym in the city in a partnership with Detroit’s recreation department. A minimum 15,000 square feet is needed for the space, according to Hilliard. e project would cost between $15 million and $20 million.
“I think it’s reasonable to develop gymnastics programs in De-
troit because that’s where I did mine,” said Hilliard, a member of three World Championships-competing teams from 1979 to 1983. “We had four coaches from the Ukraine and all of a sudden we had these rock star teams.”
Hilliard has attended Detroit Homecoming every year since its inaugural event in 2014.
“You have so many people from Detroit who’ve gone on to do such great things and they come back and share all this wisdom that could help someone else,” Hilliard said. “Going to that event did a lot for me. It gave me some added inspiration to serve the kids in the city.”
Hilliard is committed to nding partners for the venture. She said gymnastics is an activity anyone can participate in for the majority of their life.
“I want people to be invested in it. at’s important,” Hilliard said. “I think the city should manage it. I’m not talking about putting the costs back on the kids. e city needs to invest in this and do it for their youth.
ere’s big costs associated with it. e goal is to get public or pri-
vate support.”
City of Detroit assistant director of recreation Ricardo Marble in an email to Crain’s called Hilliard a wonderful partner to Detroit Parks and Recreation. Marble declined to respond to a question on the city’s commitment to working with Hilliard to establish a permanent gym.
“Wendy Hilliard has been bringing the sport of gymnastics to children across Detroit for several years now,” Marble said. “We’re excited to hear she’s working on creating her own space speci cally geared toward (gymnastics) so she can expand and grow her foundation to serve many more Detroit children.”
No matter where the support comes from, Hilliard said she will continue her mission to bring gymnastics to the youth of Detroit.
“I’ve been all over the city. is has great potential,” Hilliard said. “We’ve had some great gymnasts come through the city. It’s time for us to rock again.”
26 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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Wendy Hilliard is a Detroit native and USA Gymnastics Hall of Famer. | CRAIN’S DETROIT BUSINESS
“We’ve had some great gymnasts come through the city. It’s time for us to rock again.”
Wendy Hilliard
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Developing the leaders of tomorrow
How 2 Detroit expats made good on investments back home
By Kurt Nagl
For two metro Detroit-raised businessmen, returning to roots is paying o nancially and inspiring con dence in future investments in their hometown.
Michigan State University is invested in the future of Detroit. Student-scholars gain experience designing electric vehicles for the auto industry. Henry Ford Health + MSU students learn to tackle health disparities while researchers seek methods for earlier cancer detection and treatment. Apple Developer Academy graduates prepare for careers in the app economy. The leaders of tomorrow’s Detroit have bright futures — and many get their start at MSU.
Rick French, who founded Raleigh, N.C.-based French/West/Vaughan in 1997 and grew it into one of the nation’s largest independent PR rms, sees big growth opportunities in Southeast Michigan.
Since acquiring Bloom eld Hills-based Millerschin Group Inc. at the beginning of the year, French said the rm has achieved 20 percent growth and expects that trend to continue. He is scouting a new headquarters for the o ce, which will either be downtown Detroit or potentially on the campus of Oakland University — if a unique partnership between the rm and his alma mater’s PR/communications department pans out.
French said attending Detroit Homecoming over the past 10 years led to his desire to invest in the region.
“Coming back and seeing what some of my friends and peers have done in the city and how pleased they’ve been with their decision to reinvest in Detroit and Southeast Michigan led me to continue to look for the right opportunity myself,” he said.
While in town for this year’s event, scheduled for Sept. 20-22, French plans to tour o ce spaces where he hopes to expand the Millerschin sta of eight. He will also be sizing up potential future investments. “It won’t be the last investment from my perspective in Southeast Michigan.”
Ranvir Gujral, founder of San Francisco-based private equity rm Sleeping Bear Capital, will also be sni ng out possible opportunities at this year’s event, especially considering the suc-
cess of the largest investment his rm has made in his home state.
In 2019, the company made a multi-million-dollar investment to acquire Ann Arbor-based Adaptive Energy LLC, a manufacturer of propane-powered fuel cells for defense and railroad industries. Last year, it sold the majority of its shares to aerospace company Edge Autonomy. Gujral declined to providenancial details of the deal other than to say it “generated multiples of our original investments.”
“It actually was a tremendous success as far as an investment goes,” he said. “Certainly the trajectory of that business helped inspire the con dence and desire to do more in the area.”
Gujral left the state soon after graduating from University of Michigan and eventually landed on the West Coast, though as the name of his rm implies, staying connected to home is a priority. Detroit Homecoming helped make that happen, he said.
“It helped me see the details of the reinvigoration of downtown. at, in turn, led to excitement as well as the motivation to be involved,” he said. “It’s not like sitting in California I was never visiting home and wasn’t aware of what was happening in Detroit, but it really helped crystallize it.”
In addition to Adaptive, Gujral also has several investments in multi-family units in the city of Detroit, as well as in digital marketing. In 2021, a portfolio company of Gujral’s rm, Los Angeles-based Phenomenon, merged with Detroit-based digital marketing startup Marketing Supply Co., since rebranded as Posthuman.
Both Gujral and French said their goal is to nd the next winning deal back home. “We’re pleased with the investment and the doors that it has opened in Southeast Michigan,” French said.
28 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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Longtime music executive invests in tunes — and food
By Jay Davis
Westland native Mike Jbara has an a ection for Detroit that extends all the way to the people who do business in the city.
Jbara, a two-decade veteran of the music industry, has put about $400,000 into businesses owned by restaurateur Ping Ho and music executive Garret Koehler. Ho owns and operates Marrow, e Royce, and e Mink — all of which have opened since 2016. Koehler is the proprietor of Corktown-based record label Assemble Sound, which opened in 2014.
Jbara and Ho have a relationship that goes back to their time with Warner Music Group, where Jbara served as executive vice president of technology & business process in 2015 and 2016 and Ho worked as vice president from 2013 to 2015. Jbara was introduced to Koehler by mutual friends who had talked up Koehler to Jbara in 2015. Jbara for three years met and advised Koehler before putting more than $133,000 into the music company. e investments were more about the people than the products, Jbara said.
“My relationships with (Ho and Koehler) were well-developed before they sought any nancial support,” Jbara said. “I just wanted to support their goals. ere’s a line that says, ‘no one invests in restaurants to make money’. And it takes a long time to build a catalog of assets in the music business. Neither of those investments were inspired by the expectation of any (short-term) nancial gain.”
Jbara as an investor in Ho and Koehler’s businesses o ers support to both.
With Assemble Sound, Jbara o ers his perspective as a longtime music executive and every once in a while Jbara taps into his network to “help make things happen” for the company.
For Ho’s businesses, which operate under her Backbone Hospi-
Ho, who has known Jbara since 2005, said she was unaware of Jbara’s Detroit connections until she announced her move to Detroit almost a decade later. Ho in an email to Crain’s said Jbara remains a con dant.
“Not only have we kept in touch, (Jbara) has been an invaluable supporter, investing in all of my businesses, starting with Marrow in 2018,” Ho said. “He is someone I turn to for guidance and advice, as opportunities and challenges come around.”
Jbara credits his attendance at a past Crain’s event for his re-engagement with Detroit. He attended Crain’s Idea Conference in 2012 at the request of a family member who worked for Crain’s at the time. Jbara said that event is a milestone for him to commit to making an impact in Detroit. Jbara also participated in the 2014 Detroit Homecoming event. e investments in Ho and Koehler came shortly after.
“Crain’s has been an impact organization,” Jbara said. “ at organization’s commitment to the city of Detroit is unlike anything I’ve experienced in any other place I’ve lived. Detroit’s always excited me. My dad grew up in Detroit. My mom grew up in Ferndale. My mom went to (Farmington Hills Mercy) and my dad went to ( e University of Detroit Jesuit). ey met at a UDJ dance.
tality company, Jbara helps in a variety of ways like reviewing vendor contracts or helping to negotiate licensing agreements.
“Most of the time, I try to just listen,” Jbara said. “For talented leaders like (Ho and Koehler), sometimes it is useful to let them exercise ideas. ey’re both so good that I think they help me more than I help them.”
“Detroit has never lost that magic for me. I’ve lived many other places and traveled all over and no community of people makes me happier than Detroiters. Homecoming has been the bridge, for me, to connect my adult life to my roots while committing to make an impact.”
Jbara currently lives in New York while he works as CEO of England-based music technology company MQA Ltd. Home is always on his mind, though.
“ ... I can say with con dence that few things would make me happier than to nd a next role that allows me to be based in Detroit,” Jbara said.
30 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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“Detroit has never lost that magic for me.”
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EXPATS
From Page 32
Stephen Axelrod, M.D., of Denver, is a Wayne State University School of Medicine graduate who invested $150,000 in the DuCharme Place apartment project in Lafayette Park after attending Detroit Homecoming I, helping to nance 180 residential units. A handful of Homecoming alumni also invested in that project.
“I had an amazing experience and was enthusiastic about contributing in some concrete way,” Axelrod says of Detroit Homecoming I. “I knew I wanted to participate in Detroit’s renaissance...“I’ve always thought that this was a beautiful ‘pocket’ area just blocks from downtown and easily accessible from the medical center. I made my decision the minute I
Laurence (“Larry”) Fisher II has attended six of the 10 Detroit Homecoming experiences.
He’s a member of the large “Body by Fisher” extended family and the son of the late Charles “Chick” Fisher, who led NBD Bank in Detroit for many years. at bank was founded by Larry Fisher’s grandfather, Charles Fisher Jr., one of the brothers who founded and operated Fisher Body and built the Art Deco masterpiece, the Fisher Building in New Center. He is a member of the Automotive Hall of Fame Board of Directors, where he chairs the governance committee.
Today, Fisher is senior managing director and president of family wealth services at Chevy Chase
Ka’ramuu Kush attended Detroit Homecoming in 2017 and 2018, the latter with Lauren Beck, who has become the executive producer of Kush’s coming-ofage lm, “Swimmobile.” e lm is in fundraising mode. A number of Detroiters, including “boomerang” Kerry Duggan and entrepreneurs and philanthropists, have invested in it with hopes that it will start production in 2024.
Longtime radio executive Brian Maloney attended Detroit Homecoming in 2015 at the urging of his mentor, the late Dick Kernen of the Specs Howard School of Media Arts. at visit was the spark and initial catalyst that would, years later, bring him to launch a new business, e Sonic Coast — an Americana music-focused streaming app-based radio station.
But his journey began as a deejay after attending Specs Howard, bouncing around to deejay jobs in multiple states. Maloney says he soon determined: “I had to make money. So I went to the sales and management side,” eventually managing and running radio stations across the country, ending in the Raleigh-Durham region in North Carolina.
“I always thought that when I wrap up my radio career, I am going to give back to Detroit. Detroit Homecoming really inspired me. I hope you keep it going forever.”
took the Lafayette entrance ramp to the Dequindre Cut. e project was constructed beautifully facing the park. Occupancy has been maintained in the high 90 percent range and is turning out to be a very good investment.”
A self-described serial entrepreneur, real estate is his preferred investment vehicle while he concentrates on patient-focused health care services as “my preferred professional domain.” He reports that he attempted to start a senior-focused pharmacy catering to the Detroit inner-city population with home delivery. “Unfortunately, after numerous meetings, I couldn’t get any payers to recognize the opportunity for ‘value-based care.’”
Axelrod also made a $10,000 donation in Wayne State University after meeting then-President M. Roy Wilson at the rst Detroit Homecoming.
Trust in Maryland
During his Homecoming years, he has invested in multiple development projects led by Broder Sachse.
“To have attended and been involved with an organization like Detroit Homecoming for more than half of the 10 years since Mary Kramer and Jim Hayes founded it has provided a reconnection to the city where I was born (in a car — in Detroit),” Fisher says. “It has given so many of us a chance to reinvest in the city that has given so much to the world — and continues to provide innovation and technology for so many industries, but especially those businesses focused on the automotive and mobility sectors.”
Ka’ramuu Kush
Maloney’s project is an online-based station, SonicDetroit. It’s a subset of his rst audio brand, Sonic Coast. You can download the app and listen online. “Everything has gravitated to digital,” says Maloney, who is selling sponsorships versus 30- and 60-second spots on the site he plans to launch in September.
Online radio is the “next big thing,” he says, with a nod to predictions that automakers will soon abandon equipping vehicles with radios as standard equipment. e music, he says, will include styles not being served — Americana, roots rock, and artists with ties to Michigan, such as War and Treaty (Albion); Greta Van Fleet (Frankenmuth) and e Gasoline Gypsies (Detroit).
e most important thing about this is giving Michigan bands exposure on a professional platform.”
See EXPATS on Page 36
34 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 Promote Your Industry Event News MAKE AN ANNOUNCEMENT! Debora Stein | dstein@crain.com PRODUCING REAL RESULTS AND CAREER-LONG EARNINGS Did you know that 95% of our graduates receive career opportunities or gain entrance into graduate programs upon graduation from Detroit Mercy? And in recent years, a study by Georgetown University ranked Detroit Mercy among the top 13% of universities in the U.S. for careerlong earnings. For more, call 313-993-1245 or visit udmercy.edu/admission TITANS ARE BOUNDLESS udmercy.edu admissions@udmercy.edu 4001 W. McNichols Road, Detroit, MI 48221-3038 DM Crain Detroit Business Ad 2023_updated.indd 1 8/15/23 9:51 AM
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ED SIAJE Managing Director & Market Executive, Bank of America
Strong Leadership Leads to Transformative Growth & Positive Change
Mark Stiers, president & COO of DTE Vantage & DTE Energy Trading, helped guide United Way for Southeastern Michigan through the pandemic and set the stage for a historic merger with United Way of Washtenaw County. With Mark’s strategic insights and unwavering commitment to the community, United Way was able to navigate a time of unprecedented change — raising more than $35 million for COVID-19 crisis response and over 43,000 volunteer hours to help local families in need. Mark’s term as board chair culminates this September when Ed Siaje, managing director and market executive at Bank of America takes the helm. A longtime board member and friend of United Way, Ed played a pivotal role leading several key committees, including spearheading meaningful changes that led to our board becoming more representative of our diverse community. His leadership and advocacy will serve our organization and community well as we work to create a brighter future for our region.
T M & E
MARK STIERS
President & COO, DTE Vantage & DTE Energy Trading
EXPATS
From Page 34
Benjamin Navi is president and founder of Jimena Cos. in New York. He began attending Detroit Homecoming in 2018 and has attended each year since.
Jimena follows a triple-bottom line philosophy, a focus he says is one of the rst in the industry
Amy Nederlander graduated from Groves High School in Birmingham and the University of Michigan before earning an MBA from Columbia University and beginning her career in New York City. She worked in investment banking as well as her extended family’s theater empire in New York.
In 2016, the same year she rst attended Detroit Homecoming, she and her business partner Michaela Murphy, brought a pilot for a summer youth program to Detroit: Leadership! Fueled by Entrepreneurs, or L!fe Leaders. e intent was to build entrepreneurial skills and con dence to build lifetime learning and success.
e program started as an LLC, but shifted to a nonpro t platform in 2018 when it held a successful fundraiser in connection with the Fisher eater run of “Hamilton,” whose o -Broadway
to take. He created e Akin Group, focused on retail and entertainment, and is “committed to the transformation of retail spaces in select cities, starting with Detroit.”
All of his investments have been in Eastern Market, with the largest a $20 million project, he said. Two others involve $8 million initially “with future development plans with a bigger investment.”
and Broadway debut was produced by Detroit expat Je rey Seller, a friend of Nederlander’s.
e nonpro t summer youth program and annual summit has grown to have a budget of nearly $300,000, with a full-time executive director, Maria Franklin. is summer, 35 students participated in the program as part of Grow Detroit’s Young Talent program.
L!fe Leaders also recently was awarded a $500,000 state grant and hopes to build a “youth chamber of commerce” to connect nonpro ts focused on teens and young adults together.
As Nederlander has stepped back from day-to-day operations and remained a board member, she’s a partner in a for-pro t merchandising company, JL76 — named in honor of Joe Louis’ 76inch wingspan. e merchandise, she says, will be youth-centric and inspired by Detroit.
Ebbie Parsons III founded Atlanta-based Yardstick Management in 2012. An alum of both Cranbrook and Country Day, he has attended Detroit Homecoming since its inception through 2022. Along the way, he has invested in residential real estate with fellow expat Brian Razzaque, and has begun working with Detroit-area companies — from Rocket Companies to furniture maker Floyd, “We’ve hired three sta mem-
Larry Taylor, chairman of Guided Compass Technologies, has an AI-generated method of helping students explore college and career readiness. e company has worked with the Detroit public schools to scale its work to create a work-based learning program and help students secure an internship.
“Students can now use Genera-
bers in Detroit,” Parsonsnotes.
e company garnered national attention when Inc. magazine reported on its engagement with client Net ix, that included a talent assessment of diverse leadership pools and helped to shape Net ix’s $100 million investment in blackowned banks across the country after the murder of George Floyd. e deposits allowed those banks to create more commercial loans to customers in cities throughout the U.S.
tive AI to learn about the day in the life of employers, explore careers, nancially plan their future, complete mock interviews, and even complete mock internships while adhering to (privacy regulations).”
Taylor said the work now is primarily pro bono — but the contract value “should be hundreds of thousands of dollars.”
Michael Scherer, a California-based business consultant and graduate of University of Detroit Mercy, launched a fund this year to nance the purchase and rehabilitation of homes to create a ordable rental properties in Detroit. e goal is $2.5 million; the minimum investment is $50,000.
After attending Homecoming in 2016 and providing hundreds of hours in consulting to small businesses and nonprofits in Detroit, Schererand his wife started investing on their own. ey now own six rental properties in Detroit and ring suburbs; a two-family home near his alma mater’s campus in the Liv/6 neighborhood currently rents its 3-bedroom ats to members of UDM’s women’s basketball team.
e couple also invested in expat-founded Greatwater Opportunity Capital LLC.
Together with the six privately purchased properties and the Greatwater investment, Scherer says the total invested is $400,000.
In his nonpro t volunteer work, Scherer also helped the Detroit chapter of Minds Matter nd classroom space at UDM. Minds Matter supplies academic and mentoring support for high school students that later enables them to succeed in college.
36 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
26-27 SEP REGISTER NOW! Join us for the largest Women’s Business Conference and Matchmaker event in Southeast Michigan. greatlakeswbc.org/conference Excellence in Supplier DiversityAwards 1:1 Matchmaker | WE Match WE Pitch Competition | Workshops LEARN MORE 23RD DETROIT HOMECOMING: 10 OUTCOMES FOR 10 YEARS
Margaret Kennedy (left), hall of fame gymnast Wendy Hilliard, and Yardstick Learning CEO Ebbie Parsons III speak at Detroit Homecoming. | AARON ECKLES
Fall arts and culture guide
From ‘Funny Girl’ and Dance Theatre of Harlem to ‘The Nutcracker’ and Holiday Pops, check out our preview of upcoming events.
Through Sept. 24
“Sonya Clark: We Are Each Other” exhibition at the Cranbrook Art Museum
Artist Sonya Clark’s community-centered and interactive projects highlight issues of history, race and reconciliation. One of her projects on display includes “Finding Freedom,” which presents a large-scale canopy quilted together from cyanotype fabric to mimic the night sky. Visitors are invited to use a blacklight ashlight to imagine how starlight guided slaves along the Underground Railroad. The ber-artist received her MFA in Fiber from Cranbrook Academy of Art in 1995 and has since received acclaim for her work.
By Rachelle Damico
Sept. 24-Nov. 26
“Dining with the Spirits”
The Whitney hosts a paranormal dinner tour. Paranormal hosts guide you through the history and legends of the Whitney family and estate. Enjoy a four-course dinner with selected spirits, followed by a paranormal expedition through the mansion, gardens and carriage house. Dinners are 5 p.m. on select Sundays.
Sept. 26-Oct.8
“Funny Girl”
Broadway in Detroit presents “Funny Girl” at the Fisher Theater. The Broadway revival tells the story of Fanny Brice, a determined girl from New York City’s Lower East Side who dreams of a life in show business , despite everyone telling her she’ll never make it. The comedy-drama features hit songs such as “Don’t Rain On My Parade,” “I’m the Greatest Star,” and “People.”
Sept. 30
geisha’s expectations are shattered as she discovers all is not what it seems. An all-Japanese and Japanese-American creative team re-envision the story. Performed in Italian with English translations projected on screen.
Oct. 13
“Toyota Lecture on Design — Michal Makarewicz”
6-7:30 p.m. at the College for Creative Studies. Award-winning Pixar veteran Michal Makarewicz explores the process of bringing characters to life in feature animation in this lecture at CCS. Makarewicz is known for his work on “Soul,” “Ratatouille,” “Incredibles 2” and more.
Through Sept. 30
The 13th annual Detroit Month of Design Festival
Presented by Design Core Detroit, is a monthlong, citywide celebration that gathers designers and the greater community of Detroit to highlight Detroit’s role as a UNESCO City of Design. Programming ranges from exhibitions, installations, product launches, lectures, panel discussions, tours, workshops and more.
Sept. 21
“The Wright Conversations with Alexander Smalls”
5 p.m. James Beard-Award winning chef, author, and raconteur Alexander Smalls leads a discussion at the Charles H. Wright Museum of African American History. Smalls is known for his renowned restaurants, The Cecil and Minton’s in New York City’s Harlem neighborhood. The Cecil, NYC’s rst Afro-Asian American restaurant, was named “Best New Restaurant in America” by Esquire in 2014. Smalls won an James Beard Award in 2019 for his cookbook, “Between Harlem and Heaven.”
“Opening Gala with Yo-Yo Ma” 5 p.m. For the rst time in 20 years, the Detroit Symphony Orchestra revives its season-opening event to kick off its season of performances and programming. The Opening Night Gala features a concert by the Detroit Symphony Orchestra and acclaimed cellist Yo-Yo Ma, along with music conducted by Jader Bignamini. The event begins with a red carpet and photos in the DSO’s William Davidson Atrium for a pre-concert reception. Gala supporters are invited to a formal dinner and afterparty following the concert.
Oct. 4-Oct. 29
“Ken Ludwig’s Moriarty: a New Sherlock Holmes Adventure” at Meadow Brook Theater. Beloved characters Sherlock Holmes and Dr. Watson embark on an investigation into the Bohemian king’s stolen letters. Holmes and Watson team up with American actress Irene Adler to take down criminal mastermind Professor Moriarty in this international mystery play.
Oct. 7-15
“Madame Butter y”
The Detroit Opera kicks off its opera season with Giacomo Puccini’s tragedy Madame Butter y. Re-imagined to a virtual reality setting, the story follows a young Japanese girl, Cio-Cio-San, who falls in love with American naval of cer Pinkerton. Cultures collide and the trusting young
SEPTEMBER 18, 2023 | CRAIN’S DETROIT BUSINESS | 37 Oct. 6 - Dec. 23, 2023 PurpleRoseTheatre.org
“Funny Girl” | EVAN ZIMMERMAN FOR MURPHYMADE
|
“Sonya Clark: We Are Each Other” | PROVIDED
“Madame Butter y” | PROVIDED
FALL ARTS AND CULTURE GUIDE
Oct. 20
“Comedy & Cocktails”
5:30 p.m. at the Macomb Center for Performing Arts. A benefit supporting Macomb Community College’s arts and culture programming features cocktails, appetizers and dinner, as well as a raf e and silent auction. Following the event, nine-year “Saturday Night Live” comedian Kevin Nealon performs stand-up comedy at 8 p.m. Known for his dry wit and unique sense of humor, Nealon has received critical acclaim for his role in the Showtime series “Weeds.” Tickets to Nealon’s performance can also be purchased separately.
Oct. 21-22
Dance Theatre of Harlem
The renowned troupe opens the dance season at the Detroit Opera House with performances choreographed by George Balanchine, William Forsythe, and Dance Theatre of Harlem’s artistic director Robert Garland. The program includes Balanchine’s classical ballet “Allegro Brillante,” (set to Tchaikovsky’s Piano Concerto No. 3.) and Forsythe’s “Blake Works IV,” which celebrates dancers and technique (set to electronic soul music by James Blake). The Detroit premiere of Garland’s “Return” features contemporary ballets (set to music by James Brown and Aretha Franklin). The dance studio is founded by Arthur Mitchell, the rst African American principal dancer of New York City Ballet.
Oct. 21-Jan. 15, 2024
“Mandela: The Of cial Exhibition”
The Henry Ford Museum hosts an interactive journey through the life of former South African President Nelson Mandela. The exhibition features unseen footage, photos and displays of more than 150 historical and personal artifacts loaned from the Mandela family, museums and archives worldwide. Items on display include Mandela’s presidential desk and chair, his famous beige trench coat, a suit worn for the opening of the South African parliament in 1996, and more.
SPONSORED CONTENT
Sea Life Michigan Aquarium: Tricks & Treats
4316 Baldwin Road, Auburn Hills, MI 48326 | 248-409-6001
VisitSeaLife.com/Michigan
Enjoy kid-friendly Halloween fun during Tricks & Treats at Michigan’s largest aquarium! You’ll meet creepy creatures like bat sh, wolf eels, moon jellies and more, then nd out if you’re brave enough to touch sticky sea anemones and slimy sea stars at the Interactive Touchpool exhibit! Halloween Event included with General Admission. Tickets must be purchased online.
SPONSORED CONTENT
Detroit Public eatre
3960 ird Ave., Detroit, MI 48201 | 313-974-7918
DetroitPublic eatre.org/season-nine
“Eight Nights” by Jennifer Maisel
(September 17, 2023November 5, 2023),
DPT’s “Holiday Cabaret”
(November 29, 2023December 17, 2023), “
Blues For An Alabama
Sky” by Pearl Cleage
(January 24, 2024March 3, 2024), “Clyde’s” by Lynn Nottage (April 24, 2024 - June 2, 2024)Detroit Public eatre produces nationally recognized plays and programs with world-class writers, directors, actors, and designers in the heart of Midtown Detroit’s thriving cultural district. We create bold, relevant work that illuminates the thrills, joys, and challenges of our shared human experience. Season 9 tickets are now available for purchase.
SPONSORED CONTENT
e Whitney
4421 Woodward Ave., Detroit, MI 48201 | 313-832-5700 | eWhitney.com
e Whitney is the perfect destination for an elegant dinner before or a night cap a er the show. For larger groups, consider e Whitney for your next business meeting or holiday party!
e Whitney o ers 14 private dining rooms for a comfortable, elegant gathering. Impeccable service and incredible cuisine meet stunning architecture that will surprise and delight your guests. Complete lunch menus from $39 and dinners from $59 per person. Visit the famous Ghostbar for a cocktail.
SPONSORED
Fox eatre Premium Suites
2211 Woodward Ave., Detroit, MI 48201 | 313-471-7313 | 313Presents.com/Premium
Experience your own private box at great shows like Jerry Seinfeld, “Dr. Seuss’ How e Grinch
Stole Christmas! e Musical,” “A Magical
Ford House
SPONSORED CONTENT
1100 Lake Shore Road, Grosse Pointe Shores, MI 48236 | 313-884-4222
FordHouse.org
Harvest Day, Saturday, October 7: Fall farmer’s market, family fun, petting zoo, and photo opportunities. Little Goblins, Saturday, October 28: Bring your little goblins to Ford House for this day of Halloween entertainment lled with spooky yet kid-friendly fun. ere will be trick-or-treating, photo ops, and a haunt-free wagon ride. Costumes are welcome and encouraged!
SPONSORED
Women Rock Science
Cranbrook Institute of Science, 39221 Woodward Ave, Bloom eld Hills, MI 48304 | 248-645-3220 | Science.Cranbrook.edu/Women-Rock-Science is 6th annual women-led fundraising event aims to inspire all children to pursue STEAM careers, with an emphasis on young women. Proceeds have helped to provide STEAM educational opportunities to Pre-K-12 students in Michigan’s underserved communities. is year, with your support, 35,000+ students will receive outreach programming, 3,000+ students will experience eld trips to the Institute, and more. General admission tickets can be purchased for $125 or $250. Sponsorship packages are available and range in price from $1,000 - $50,000.
Purple Rose eatre
137 Park St, Chelsea, MI 48118 | 734-433-7673 | PurpleRose eatre.org
“Diva Royale” by Je Daniels, Oct. 6 - Dec. 23, 2023: e Purple Rose eatre Company (PRTC) is the home of world-class, original American theatre. e PRTC is a professional theatre company with roots in the Midwest that takes a handcra ed, artisanal approach to producing new and classic American plays that are nothing less than one-of-a-kind experiences. e PRTC is a 501(c)(3) not-for-pro t professional theatre.
umbCoast eaters
109 S. ird St., St. Clair, MI 48079 | 810-278-1749 | umbCoast eaters.com
umbCoast eaters, three distinct venues located on the St. Clair River about an hour from anywhere in Metro Detroit, o er professional, live performing arts in a vacation-like setting.
“ e Odd Couple,” now onstage at Riverbank, marks the 76th production in 10 years. And, don’t miss “Elf the Musical” this Christmas at the brand new Boardwalk eatre.
38 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
The Of cial Exhibition | PROVIDED
Mandela:
SPONSORED CONTENT
CONTENT
SPONSORED
CONTENT
Cirque Christmas,” Chris Tucker, Taylor Tomlinson, Al Green, and more! Enjoy complimentary dinner, suite members only entrance, wait service and suite parking! CONTENT
SEAN CARTER PHOTOGRAPHY
Nov. 4
“The Hustle: Entrepreneur Resource Summit”
10 a.m.-4 p.m. The Detroit Historical Museum hosts a daylong summit designed to bring Detroit’s entrepreneurial community together, along with resource providers who plan to work with and support them. Registrants will participate in lectures, panels, one-on-one discussions and more. The summit is part of Detroit Historical Society’s initiative “The Hustle,” which honors Detroit’s Black entrepreneurs with a series of exhibits, public programs and educational offerings. A brand-new exhibit at the Detroit Historical Museum devoted to “The Hustle” will open during the summit. Entertainment and food trucks will be on site.
Nov. 11
The 2023 DIA Gala
6 p.m. The Detroit Institute of Arts will host an evening of dining, ne wine, entertainment and music. This year’s event celebrates 50 years of the DIA’s historic Detroit Film Theater, which presents a wide variety of cinema year-round. Sponsors and ticket purchasers will also receive an invitation to an exclusive Patron Party on Sept. 20, where gala-goers can mingle with fellow DIA supporters.
Nov. 14
Latin Grammy nominee
Mariachi Herencia de México presents “Herederos”
7:30 p.m. at the University Musical Society in Ann Arbor. The night of
Mexican music and culture blends genres like bolero, cumbia, tango, swing, and more. Musical performances honor the past, present and future of mariachi music. Singer La Marisoul, the lead singer of La Santa Cecilia, fronts the ensemble.
Nov. 18
“The Life and Loves of a Broadway Baby: An Evening with Melissa Errico”
Cabaret 313 presents Broadway star Melissa Errico, performing at The Cube at the Max M. and Marjorie S. Fisher Music Center. The actress, singer and author sets her own life to Broadway songs and shares stories along the way. Errico is known for her performances as Eliza Doolittle in “My Fair Lady” and was nominated for a
Tony Award for Best Actress for her performance in “Amour.”
Nov. 29
“The Nutcracker”
7:30 p.m. at the Music Hall Center for the Performing Arts. The State Ballet Theatre of Ukraine presents the classic tale of a girl who befriends a nutcracker that comes to life on Christmas Eve and wages a battle against the evil Mouse King.
Dec. 2
Noel Night
5-10 p.m. M ore than 30,000 families and individuals visited the M idtown district last year to take part in this annual holiday event. Patrons will
enjoy holiday shopping from small businesses and pop-up marketplaces, food and drinks, musical performances, artist exhibitions and more. Last year, more than 80 cultural and educational institutions, small businesses, historic churches, galleries and restaurants participated.
Dec. 9
“Apollo’s Fire plays Wassail! An Irish-Appalachian Christmas”
8 p.m. at Seligman Performing Arts Center. Chamber Music Detroit presents Grammy-winning chamber orchestra Apollo’s Fire. Transport to Christmas night in Old Ireland for singing and storytelling in celebration of the American immigrant experience. Irish singer Fiona Gillespie performs alongside ddlers, medieval harp, hammered dulcimer and bagpipes.
Dec. 16
“Holiday Pops 2023”
7 p.m. at the Ann Arbor Symphony Orchestra. Experience an evening of holiday cheer as guest conductor Stilian Kirov leads the Ann Arbor Symphony Orchestra to seasonal favorites. The evening will feature classic holidays hits, new orchestral arrangements, special guest appearances and more.
SEPTEMBER 18, 2023 | CRAIN’S DETROIT BUSINESS | 39
Mariachi Herencia de Mexico | PROVIDED
Apollo’s Fire | PROVIDED
DETROIT'S LARGEST EMPLOYERS CRAIN'S LIST |
Ranked by full-time employees July 2023
25
FORVIA NORTH AMERICA (FORMERLY FAURECIA NORTH AMERICA) 12
2800 High Meadow Circle, Auburn Hills48326 248-724-5100;forvia.com
ResearchedbySonyaD.Hill:shill@crain.com
|ThislistofDetroitemployersencompassesthecitiesofDetroit,HamtramckandHighlandPark.EmployerswithheadquartersinWayne,Oakland,Macomb,WashtenaworLivingstoncounties arelistedwiththeirheadquarters'addressandtopexecutive.CompanieswithheadquarterselsewherearelistedwiththeaddressandtopexecutiveoftheirmainDetroit-areao ce.Numberoffull-timeemployeesmayincludefull-timeequivalents.It isnotacompletelistingbutthemostcomprehensiveavailable.Crain'sestimatesarebasedonindustryanalysesandbenchmarks,newsreportsandawiderangeofothersources.Unlessotherwisenoted,informationwasprovidedbythecompanies. Actual guresmayvary.AllyFinancialInc.whichwasNo.17andMagnaInternationalwhichwasNo.19onlastyear'slistbothdeclinedtoparticipate.NA=notavailableNOTES:
e. Crain'sestimate.
1. BecameapubliclytradedcompanyonAug.5,2020, andtradingunderthetickersymbolRKT.
3. AsofDecember2022.
2. SucceededBillEmerson,interimCEO,e ectiveSept.5.
4. AsofJuly2021.
5. FiguresareFTEcountsfromtheCenterforEducationalPerformanceandInformation.
6. AsofJanuary 7 FromFrom10-KendinginDec.31,2022. 8. SucceededM.RoyWilsonaspresidentinAugust.
9. SeverallargeteamsfromDowntownDetroit'sRenaissanceCenterweremovedtotheWarrenTechCenter.
10. EstimatebasedonnumbersfromMWPVL International Inc.
11. Estimate from MWPVL International Inc.
12. After Faurecia's acquisition of a controlling stake in Hella, the combined company is now known as Forvia. Faurecia's acquisition of Hella was completed in February 2022. Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data
40 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023 COMPANY ADDRESS PHONE; WEBSITE TOP LOCAL EXECUTIVE(S) FULL-TIME EMPLOYEES IN CITY OF DETROIT JULY 2023/ 2022 FULL-TIME EMPLOYEES IN MICHIGAN JULY 2023 WORLDWIDE EMPLOYEES JULY 2023TYPE OF BUSINESS 1 STELLANTIS (FORMERLY FCA US LLC) 1000 Chrysler Drive, Auburn Hills48326-2766 248-576-5741;stellantis.com MarkStewart COO, North America 10,947 10,861 40,71682,944Automobile manufacturer 2 ROCKET COMPANIES INC. 1 1050 Woodward Ave., Detroit48226 313-373-7990;rocketcompanies.com VarunKrishna 2 chief executive o cer DanGilbert chairman and founder 10,735 14,109 10,73516,200Fintech platform company consisting of personal nance and consumer technology brands 3 CITY OF DETROIT 2 Woodward Ave., Coleman A. Young Municipal Center, Detroit48226 313-224-3400;detroitmi.gov MikeDuggan mayor 9,520 8,942 9,5209,520City government 4 HENRY FORD HEALTH 1 Ford Place, Detroit48202 800-436-7936;henryford.com RobertRiney president and CEO 7,718 7,718 19,68032,609Health care system 5 U.S. GOVERNMENT 477 Michigan Ave., Detroit48226 313-226-4910;usa.gov NA 6,813 3 6,673 4 20,538 3 2,086,672 3 Federal government 6 DETROIT PUBLIC SCHOOLS COMMUNITY DISTRICT 3011 W. Grand Blvd., Fisher Building, Detroit48202 313-240-4377;detroitk12.org NikolaiVitti superintendent 6,649 5 6,665 5 6,649 5 6,649 5 Public school system 7 BLUE CROSS BLUE SHIELD OF MICHIGAN/BLUE CARE NETWORK 600 E. Lafayette Blvd., Detroit48226 313-225-9000;bcbsm.com DanielLoepp president and CEO 6,003 5,469 9,85412,196Nonpro t mutual insurance company and subsidiary companies 8 DETROIT MEDICAL CENTER 3990 John R, Detroit48201 313-745-5146;dmc.org BrittanyLavis CEO 5,882 6,415 6 6,714 6 6,714Health care system 9 ILITCH HOLDINGSINC. 2211 Woodward Ave., Detroit48201 313-471-6600;ilitchcompanies.com ChristopherIlitch president and CEO 5,152 e 5,034 e 8,094 e NA Food, sports, entertainment and real estate development industries 10 DTE ENERGY CO. One Energy Plaza, Detroit48226-1279 313-235-4000;dteenergy.com GerardoNorcia chairman, president and CEO 4,874 e 4,794 e 10,250 7 NA Energy company 11 WAYNE STATE UNIVERSITY 42 W. Warren, Detroit48202 313-577-2424;wayne.edu KimberlyAndrews Espy 8 president 4,172 4,073 4,1927,469Public university 12 STATE OF MICHIGAN 3042 W. Grand Blvd., Cadillac Place, Suite 4-400, Detroit48202 313-456-4400;michigan.gov GretchenWhitmer governor 3,542 3,556 46,500NA State government 13 U.S. POSTAL SERVICE 1401 W. Fort St., Detroit48233-9998 313-226-8678;usps.com RichardMoreton district manager 3,252 e 3,300 e4 16,000 6 NA Postal service 14 GENERAL MOTORS CO. 300 Renaissance Center, Detroit48265-3000 313-667-1500;gm.com MaryBarra chairman and CEO 2,798 3,278 9 50,457 167,000 6 Automobile manufacturer 15 ASCENSION MICHIGAN 28000 Dequindre Road, Warren48092 866-501-3627;ascension.org/michigan CarolSchmidt,senior VP, Ascension, and ministry market executive, Ascension Michigan 2,721 2,906 17,82617,826Health care system 16 MGM GRAND DETROITLLC 1777 Third St., Detroit48226 877-888-2121;mgmgranddetroit.com MattBuckley president 2,248 1,912 2,2482,248Hotel resort and casino 17 WAYNE COUNTY 500 Griswold St., Detroit48226 313-224-5901;waynecounty.com WarrenEvans county executive 1,841 1,774 2,2922,292County government 18 DELOITTE 1001 Woodward, Suite 700, Detroit48243-1895 313-396-3000;deloitte.com/us/en.html DavidParent Michigan managing principal 1,506 1,520 1,731NA In the U.S., the subsidiaries of Deloitte LLP provide audit, tax, advisory and consulting services 19 DETROIT MANUFACTURING SYSTEMSLLC 12701 South eld Road, Building A, Detroit48223 313-243-0700;dmsna.com BruceSmith chairman and CEO 1,394 1,394 1,5001,500Full module assemblies, mechanical and robotic subassemblies, ultrasonic and vibration welding, plastic injection molding and sequencing services 20 MCLAREN HEALTH CARE One McLaren Parkway, Grand Blanc48439 810-342-1100;mclaren.org PhilipIncarnati president and CEO 1,212 1,148 18,79118,791Health care system 21 AMAZON.COMINC. 150 West Je erson, Detroit amazon.com AndyJassy,CEO; Je Bezos executive chair and founder 1,200 10 1,340 10 15,235 11 NA Ecommerce, tech and telecom 22 COMERICA BANK 411 W. Lafayette, Detroit48226 248-371-5000;comerica.com SteveDavis,Michigan Market president;MeganCrespi,senior executive VP, chief operating o cer 862 825 4,5297,675Financial institution 23 PRICEWATERHOUSECOOPERSLLP 500 Woodward Ave.,
313-394-6000;pwc.com AmySolek o ce managing partner 832 e 770 e 1,007 e NA Professional services rm 24 ERNST & YOUNGLLP 777 Woodward
Detroit48226 313-628-7100;ey.com AngieKelly,Detroit o ce managing partner;JayPreston,Grand Rapids o ce managing partner 795 812 935NA Professional services rm
Detroit48226
Ave., Suite 1000,
NikEndrud executive vice president Americas 524 470 3,378157,000Automotive supplier
in tech.
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From Page 3
It’s unclear which speci c bills or policies may come up for a vote, or pass, in the nal months of the year. State Rep. Jason Hoskins, a Democratic lawmaker from Southeld who chairs the House Economic Development and Small Business Committee, through which many housing reform proposals must pass, declined to discuss speci c bills or policy proposals.
But in an interview with Crain’s, Hoskins said he aims to work with all a ected parties of any piece of legislation.
“I know my process, and I like to have stakeholders on board as much as possible,” Hoskins said. “I de nitely want to make sure that we’re engaging and trying to make people on all sides comfortable.”
Legislation a’plenty
Still, Hoskins and other lawmakers will have no shortage of bills and policy prescriptions to consider in
the coming weeks and months. Shortly before lawmakers left Lansing for their summer break, myriad legislation was introduced that would, among other things, prohibit landlords from using credit scores as a determining factor in selecting tenants, as well as a bill that would outlaw using criminal records as a factor, with certain ex-
PEOPLE ON THE MOVE
ARCHITECTURE
JPRA Architects
JPRA Architects announces executive leadership promotions.
Carrie Chapman has been promoted to Principal. She has been with JPRA since 2013 and leads the Interiors Studio, visioning, directing and mentoring the rm’s designers, and is known for her creativity and diverse design and architecture experience.
Jeremy Gascho has been promoted to Principal. A trailblazer in architectural imaging and design, Jeremy joined JPRA in 2012 and demonstrates an extraordinary work ethic and creativity as he leads large-scale projects from conceptual design through construction administration.
“This exceptional team has demonstrated their commitment to our long-term success. The future of our rm is in good hands,” says Brian Gregorich, AIA, President.
HEALTHCARE
Barbara Ann Karmanos Cancer Institute
The Barbara Ann Karmanos Cancer Institute, McLaren Health Care and Wayne State University welcome Boris C. Pasche, M.D., Ph.D., FACP, as president and CEO of Karmanos, and chair of the Department of Oncology at WSU School of Medicine. Pasche leads the strategic vision for future growth and development at Karmanos, the largest cancer provider and researcher in Michigan and northern Ohio. With a 30 plus year career, his progressive success will continue to place Karmanos as a leader in the eld.
ARCHITECTURE
JPRA Architects
Michael Moeller has been promoted to Principal. Mike is known as an exceptional project architect/manager on large-scale retail and mixed-use projects. Since joining JPRA in 2012, he has taken a client- rst approach to deliver projects that exceed expectations.
Scott Poloney has been promoted to Principal. A gifted designer, a master of his craft, he has worked at JPRA for 20 years. Using leading-edge imaging and illustration technology, he brings his expertise to high-pro le retail projects. JPRA Architects is a full-service rm specializing in national and international luxury retail. Notable local projects: Somerset Collection, Detroit Opera House, M-1 Concourse planning, and the Five & Main development coming soon to Commerce Twp.
FINANCIAL SERVICES
Ancora
We are happy to announce that Samantha Siewert has joined Ancora as a Vice President of Client Operations and an Executive Administrator based out of the rm’s Bloom eld Hills of ce. Samantha will be responsible for providing operational and administrative support to the local team while assisting Ancora’s clients. Prior to joining Ancora, Samantha spent seven years as a sales and operations manager with Millennium Digital Technologies. She has also earned a certi cate from Dorsey College.
ceptions.
e bills were introduced by state Reps. Abraham Aiyash of Hamtramck and Brenda Carter of Pontiac, respectively.
Each bill has multiple Democratic co-sponsors, including Rep. Kristian Grant of Grand Rapids, who recently spoke with Crain’s Grand Rapids around some of her
housing policy priorities.
“I want to really help create policy that helps to remove some of the barriers and make it more a ordable at the state level. We can’t be the gap funding for all housing,” Grant said. “We don’t have enough dollars. My focus is on how we remove the red tape. Of course we need codes and procedures, of course we want building standards, but there’s some red tape that isn’t related to that. It’s process and it costs a lot of money and it costs a lot of time, which is also money when you’re talking about building. So I want to nd out how we streamline processes and make construction more a ordable in Michigan.”
SERVICES
Phoenix Franchise Brands
Heather Bir has been appointed to Vice President of Operations for Fetch!PetCare, a Phoenix Franchise Brands Company. Bir comes to Fetch!PetCare with not only a military background, but a self-employment one as well. In addition to her duties at FPC, she is nishing her doctorate and volunteers at the local veterans crisis hospital. Bir enjoys working with Franchise owners to help them reach their self-employment goals, while driving the business to pro tability.
SERVICES
Phoenix Franchise Brands
Meanwhile, Bridge Michigan last week reported that at a rally on Tuesday in front of the state Capitol, activists from a group called “ e Rent Is Too Damn High” pushed for lifting the state’s ban on municipalities imposing rent control, essentially limiting how much landlords can raise the cost of rent.
Democratic-sponsored legislation was introduced Sept. 7 in the state’s House of Representatives to do just that.
As Crain’s has previously reported, such a policy is vehemently opposed by developers and landlords.
David Di Rita, principal of Detroit-based developer e Roxbury Group, said in January that a rent control proposal in Detroit would be akin to “taking a New York solution to a Detroit problem without realizing it didn’t solve New York’s problem.”
State of the market
To be sure, rent has increased dramatically in recent years, in Michigan and elsewhere. at was particularly true at the height of the pandemic and in the months that ensued.
LAW
Honigman LLP
Honigman LLP has welcomed Rana Sadek Roumayah to its Detroit Of ce as a Partner. Based in the rm’s Labor and Employment Department, Rana joins Honigman after working for the National Labor Relations Board for 23 years. At the National Labor Relations Board, she developed an expertise in traditional labor law and other aspects of employment law. Specializing in case analysis, strategic planning, negotiations and compliance, Roumayah has litigated, negotiated, and tried hundreds of cases.
MEDIA / ENTERTAINMENT
Phoenix Theatres
Hohman
From October 2021 through August 2022, and average rents peaked at $2,053 per month, increasing an average of 14.65% during that time, according to Rent.com.
Cork
Phoenix Theatres has con rmed that Jordan G. Hohman has been named Vice President of Project Development, and Joe Cork has been promoted to the role of Vice President of Marketing / Systems Integration Specialist. In the past 18 months Hohman coordinated two major theatre renovation projects in both Michigan and Ohio that added 23 screens and two new theatres to the circuit. His project in Grand Rapids earned Phoenix Theatres the International Cinema Technology Association’s coveted award for ‘Best Theatrical Renovation Project of 2022 in North America.’
In the past 24 months Cork brought his expertise to the development and implementation of the company’s new web site and mobile applications, with mobile ticketing and reserved seating.
Adam Grondin has been appointed to Vice President of Operations of FurryLand, a Phoenix Franchise Brands company. Grondin has been in and around franchising for twenty years, working with multiple brands spanning several different industries. In addition, being self-employed himself since 2008, Adam has a great passion for helping people become and stay successfully self-employed.
In June, the median monthly rental price in the country was $1,745, while in metro Detroit it was $1,354, according to Realtor. com.
A recent multifamily report from real estate rm Marcus & Millichap found that rent increases in metro Detroit are expected to be around 0.2% this year, compared with an 8.4% rise last year. Vacancies are also on the rise for apartments and expected to be at 5.6% this year, the highest rate since 2014.
Vacancies are rising as unit completions are expected to reach a multi-decade high, according to the Marcus & Millichap report.
“Over 6,000 units are underway in the metro with delivery dates extending into 2025,” reads the report. “Downtown-Midtown-Rivertown and South eld are slated to receive roughly half of the incoming units.”
Such dynamics are in line with the preferred policy solutions of Miller, the South eld attorney for landlords.
“Rents have peaked and are starting to come down,” Miller told Crain’s. “Incentives are coming back and there’s more vacancy. It’s supply and demand.”
42 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
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Manager
“I know my process, and I like to have stakeholders on board as much as possible.”
State Rep. Jason Hoskins, D-South eld
As outlined elsewhere in this issue, some Detroit Homecoming attendees invest in their old hometown. But some boomerang back. A selection of their stories:
my shingle when I got kicked out of the White House,” recalls Kerry Duggan, a tongue-in-cheek reference to the end of the Obama presidency and the close of her tenure as a climate adviser to then-Vice President Joe Biden and deputy director of the Detroit Task Force under President Barack Obama that brought federal assistance to Detroit in the aftermath of its bankruptcy.
Duggan returned to Detroit to the Eastern Market loft she had purchased after attending Detroit Homecoming; she and her husband eventually bought a home in Detroit’s Indian Village neighborhood.
Her consulting company, SustainabiliD, began as a solo consulting gig. Today, she has 15 fulland part-time consultants working on sustainability, climate technology and economic development for C-suite executives in established companies and “the most disruptive” climate tech companies. “For me, the magic is getting the well-established to connect with the disruptive in ways that help the smaller companies scale faster,” Duggan says.
One of her goals is to help secure as much In ation Reduction Act federal money for Detroit as possible. A second goal is to attract and expand climate technology companies to Michigan.
Some projects include working with the University of Michigan to secure funding for a sustainability clinic in Detroit, supported by a Kresge Foundation grant.
Another engagement is working with the city of Detroit on the ambitious solar project announced by Mayor Mike Duggan earlier this year: solar farms built across the city in vacant lots that would in turn power city buildings.
Kerry Duggan has also worked with other “boomerangs” to create a network and encourage others to return home to join the “Arsenal of Climate Resilience.”
She helped to create a networking group, DCxDetroit, now dubbed DC+Detroit.
e group has an email invitation list of 150 people and has met monthly in locations around the city.
Today, Woessner’s FutureOf rm, created with partners, invests equity and expertise in early-stage companies in energy transition, advanced manufacturing and new mobility. He describes the approach as “private equity approach to venture capital.” Sometimes, partners take operational roles as well.
With six companies in their portfolio, only a couple are Detroit-based, Woessner says, but “several” are working on a Detroit presence.
Two companies created demonstrations this summer of the potential for so much more.
Biliti Electric powered a mobile fresh produce grocery pilot in Corktown’s Clement Kern Gardens housing development. FutureOf is an investor and advisor to the electric three-wheeler company.
Oneof Detroit’s brightest restaurant spaces opened in 2023 — Alpino, at the corner of Trumbull and Bagley in Corktown. e food and inspiration is northern Italian, the Alpine region.
“I wanted to not only open a unique concept but play a role in retaining local talent and hopefully see fewer leave our great city to be mentored elsewhere,” says owner David Richter, who has been in the food business since his owning and operating a pizzeria in Fraser. At age 23, he sold the business and moved to New York.
e year was 1999.
His plan was to work in the city for two years and return to Detroit to open a new restaurant. en, after the 9/11 terrorist attack in New York, his plans paused. For the next 20 years, David worked with industry icons in New York, including a stint as vice president of operations at City Winery, a music venue, winery and event space operating in multiple cities, including New York, Atlanta, Chicago, Nashville, Philadelphia and Boston.
“I traveled often, and in 2019, I was ready to come o the road, start a family and put any fears behind me about taking the entrepreneur leap.”
Richter began learning more about the emerging restaurant scene in Detroit, he decided “it was time to come home and nally open a restaurant and be part of it all.” rough research, Richter came up with the Alpino concept — Italian food and wine but from the regions near the Italian Alps.
Expats
David Woessner and Tudo Pham met at Detroit Homecoming, married and came home as “boomerangs” with their newborn, Jonas. Detroit, Woessner says, o ers a low cost of living and gave them the ability to buy a landmark home (the couple will host University of Michigan alumni at a Homecoming dinearound on Sept. 21 this year.) “ is is one of the most a ordable places to live in a single-family home in the city,” he notes.
Another portfolio company, Aqua Superpower Ltd., is creating a freshwater electric boat charging network and held an event in Elk Rapids. e company recently won a $111,000 grant under Michigan’s Fresh Coast Maritime Challenge to install fast chargers and conduct demonstrations at marinas around the state.
“Electric vehicles on the ground is too crowded and in the air is too hard,” Woessner says. “So we went into marine. Michigan is the No. 4 state in the country for leisure boating.”
“Having a menu using ingredients from fresh water, farmed and game meats, and local ingredients matched the philosophy of what I had loved about the Italian food and wine culture.”
With his landlord, Charlie Dabrowski, Richter brought in three investment groups who helped purchase the building and renovate it. Richter created Rust Belt Hospitality to manage day-to-day operations.
e buildout cost about $700,000. David hopes to invest an additional $50,000 in the cellar dining space for private functions.
SEPTEMBER 18, 2023 | CRAIN’S DETROIT BUSINESS | 43
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Fraser native David Richter returns to open northern Italian restaurant Alpino in Detroit.
These entrepreneurs ‘boomeranged’ back to Detroit
Kerry Duggan | JACOB LEWKOW
While the risks from climate change are present around the country, with 83% of homebuyers saying such factors could impact their decision, such factors are slightly less present in the Midwest, with 77% saying they considered at least one climate risk, according to the Zillow report.
One neighborhood sees the effects
To be sure, Michigan remains largely safe from climate threats such as wild res and hurricanes, but ooding has become an increasingly common and unpleasant fact of life in the region.
e Je erson Chalmers neighborhood on Detroit’s Lower East Side stands as perhaps the most visible example of the unfortunate trend. e issue became particularly evident in the summer of 2021 when torrential rain resulted in the Detroit Water and Sewerage Department receiving 29,636 claims, totaling $180.8 million, according to gures from the Federal Emergency Management Agency.
e federal agency has labeled large swaths of the neighborhood — which it describes as sitting within “a topographic bowl at the base of a watershed where Conner Creek and Fox Creek drain into the Detroit River” — as being within a oodplain. at means residents and building owners are required to have ood insurance on federally insured mortgages.
Adam Soroka, a Realtor with the Detroit o ce of @Properties Christie’s International Real Estate, currently has multiple listings in the Je erson Chalmers neighborhood. Disclosing the neighborhood’s status as lying within a ood-prone area stands as a key element of the job, he told Crain’s, noting that the mandated insur-
ance typically runs homeowners between $50 and $100 per month.
Similar to Ward, Soroka said most would-be buyers don’t let
the neighborhood’s propensity for ooding deter them from buying in an otherwise desirable neighborhood blocks from the water,
with many houses situated on canals.
“ e neighborhood itself is kind of a destination for buyers, just due to the a ordability,” Soroka said. “It’s still in the city but it’s by nature. You’re literally on the water and there’s a lot of community gardens, tree-lined streets and also a lot of parks. So I think (the ooding) is something that does a ect some buyers, but some buyers can also look past it.”
A Crain’s analysis of roughly ve dozen home sales in the neighborhood in the last year showed prices ranging from under $10,000 to approaching $400,000.
Over the last several years, city o cials have been working on a long-term plan for the neighborhood.
“ e Je erson-Chalmers Water Project is structured around three goals: to keep sewage out of basements and canals, stormwater out
of the sewer system, and the Great Lakes out of the neighborhood, reads a July memo to the Detroit City Council.
To one of those ends, FEMA last month awarded a grant of more than $11 million for the neighborhood, with a plan to install new sewer mains to protect 620 properties from ooding.
“ is project will replace approximately 18,800 feet of combined sewer mains in the neighborhood, increasing the level of service to meet a 10-year, onehour storm event,” according to FEMA. “ e project will also upsize existing sewer mains or install new relief sewers to convey an equivalent ow and reduce the risk of ooding. Modeling shows that the project will protect 620 properties from ooding in a 10year storm.”
Josh Elling, CEO of neighborhood organization Je erson East Inc., said the ultimate long-term goal needs to be removing the oodplain designation from the area, Doing so, however, requires a multi-pronged approach from myriad stakeholders.
Ultimately, neighborhood residents will have to allow for some form of management of the area’s canal openings into the Detroit River — which Elling said has been controversial for residents who seek to preserve the unique attributes of the area — while also addressing the neighborhood infrastructure such as sewers and larger regional infrastructure, much of which winds up owing to the Je erson Chalmers area, Elling said.
Addressing all three issues makes for a tall order, Elling acknowledged. But he said he’s starting to see some progress.
“ e good news is a lot of people in the city government and in the neighborhood are working towards this,” he said. “But we have to row together to get the boats oating in the right direction.”
Blue Cross CEO announces plan to retire at end of 2024
By Dustin Walsh
Longtime Blue Cross Blue Shield of Michigan CEO Dan Loepp is retiring.
Loepp, 66, informed the Detroit-based health insurer’s board ursday he plans to retire at the end of 2024, the company said in a press release.
His more than 23-year career at BCBSM — nearly 18 years as its top executive — has been marked by contention and exponential growth.
Under his leadership, BCBSM’s revenue more than doubled to $32.8 billion last year. e company, following Dan Gilbert’s example with Quicken (now Rocket), moved 3,000 of its employees to downtown Detroit in 2010 to help revitalize the city.
BCBSM also made several acquisitions, including becoming the minority owner of AmeriHealth Caritas and creating a joint venture with the national Medicaid managed care servicer in 2011 and the acquisition of workers’ compensa-
tion insurer AmeriTrust Group in 2022.
He oversaw BCBSM’s controversial transition from a traditional nonpro t to a nonpro t mutual trust company in 2013. BCBSM was originally the state’s guaranteed issuer of record and had tax exempt status, but Michigan legislature passed a law allowing the insurer to become a mutual, shedding its tax-exempt status but giving it the ability to expand services and operations.
“Transformational is the one word that best describes Dan Loepp’s legacy over more than 20 years,” Gregory Sudderth, chairman of the BCBSM board, said in a press release. “His vision and leadership diversi ed our business model, revolutionized the delivery of patient care, modernized the experience of our members, helped revitalize our cities’ downtowns and strengthened our social mission commitments to communities. In every way, Dan
Loepp has prepared Blue Cross Blue Shield of Michigan to compete and succeed in a 21st Century where health care continues to evolve, and where our nonpro t company’s longstanding social mission remains as critical as ever.”
However, Loepp’s strategy was often lambasted by media and members, due to the Michigan insurer’s out-of-state activity and Loepp’s large compensation.
AmeriTrust is a national company with much of its work outside the state. Many of BCBSM’s subsidiaries also have operations nationally. Operating as a nonpro t mutual, BCBSM is charged by the government to operate to the bene t of its members, who all pay for insurance in Michigan.
BCBSM and Loepp have stood by those moves, saying the subsidiaries produce revenue and allow the insurer to maintain lower insurance premiums. Providing health insurance has been a loss
leader for e Blues in recent years. In 2021, its $374 million loss on the health insurance side of the business was buoyed by a strong investment portfolio that returned $907 million to the insurer.
at portfolio last year, however, su ered under poor corporate performance throughout the public sector, resulting in a $74 million loss and it raised premiums 5.3% in 2023.
Loepp’s compensation has been a target as well, as he’s topped Crain’s list of most compensated nonpro t leaders for most of his career, usually earning millions of dollars more per year than any other nonpro t leader in the state.
Last year, Loepp earned a base salary of $1.6 million with a total compensation package worth $15.7 million.
Last week, roughly 1,100 BCBSM workers represented by the UAW went on strike against BCBSM, arguing for better wages and a stop to rapid outsourcing under Loepp. e union claims e Blues have outsourced about
4,000 jobs in the past dozen years.
e union also noted Loepp’s growing compensation against the slow-wage growth of its workers.
Earlier in his career, Loepp served as chief of sta for Michigan Speaker of the House Curtis Hertel and director of communication for Michigan Attorney General Frank Kelley.
He is a Detroit native and Wayne State University graduate. He joined BCBSM in 2000 as vice president of governmental a airs.
“As you can imagine, it’s not an easy decision to step away from the best job I’ve had, leading a company of such signi cant importance to the lives of millions of people, and one that is only beginning to realize its potential for diversifying into an enterprise of national scale,” Loepp said in an email to employees announcing his retirement. “But it’s the right decision and this is the right time to make it.”
e BCBSM board plans to lead a national search to replace Loepp in December.
44 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 18, 2023
CLIMATE From Page 3
The Coriander Kitchen in the Jefferson Chalmers neighborhood in Detroit | PHOTOS BY NICK MANES
Homes and boats along a canal in the Jefferson Chalmers neighborhood in Detroit
Dan Loepp
Sources at several companies said they are preparing for layo s if the strike drags out, but they declined to provide details on the record, saying the situation is uid and employees haven’t been noti ed of disruption contingency plans.
Seating supplier Bridgewater Interiors was not immediately impacted by the work stoppage Friday, but president and CEO Ron Hall said the company is on alert.
“We’ve done some preliminary planning around responding to any strike actions,” Hall said in an email. “We hope to avoid layo s and furloughs, but they are possible if strikes impact us.”
Livonia-based AlphaUSA, on the other hand, will feel the fallout soon, said president and CEO Chuck Dardas. e company employs 190 in two metro Detroit plants that supply metal fastener assemblies and stampings to each of the factories targeted by the UAW.
“ e impact on us depends on how they continue to deploy their strategies,” Dardas said. “If they all go down, it’s not gonna be pretty for anyone.”
Dardas said he will have a better idea of the impact Sunday when the supplier receives its releases, or request for parts, from its customers. e bulk of Alpha’s business is supplying directly to the
automakers. Business has been booming the past couple months, Dardas said, as automakers built up inventory in anticipation of the labor contract deadline.
“We’ve been working furiously to keep up with demand knowing it was kind of a preamble to what’s happening right now,” Dardas said, adding that parts releases in August were up 35-40% from where they would typically be.
e executive said no layo s are being planned in the immediate term. “We don’t know the duration of this. We’re not going to do anything precipitous or knee-jerk.
It’s really important to us that we take care of families here.”
John Walsh, president and CEO of the Michigan Manufacturers Association, said OEMs and their supply chain have been building up inventory to hedge against a strike for a few months. Supplier giants such as Lear, BorgWarner Inc. and Adient plc have been bracing for the disruption for at least a month as UAW President Shawn Fain ratcheted up the tension.
If each of the Detroit 3 went down completely, it would cost Lear about $140 million of revenue a week, according to executive comments made in its most recent earnings call. In that same scenario, it would cost Adient $80
million to $100 million a week, while BorgWarner said its North American exposure to the Detroit 3 amounts to a little less than $250 million per month.
Lear declined to comment Friday. Neither Adient nor BorgWarner responded to requests for comment.
Executives at Canadian supplier Magna International, which has a large presence in metro Detroit, are closely monitoring the strike, said spokeswoman Tracy Fuerst.
“We have focused considerable attention on contingency planning to proactively address any temporary business disruptions to our operations,” Fuerst said in an
WE ARE
email. “If that time comes, we are prepared in terms of temporarily scaling back production on a ected programs as e ciently as possible, while being equally prepared to ramp up quickly when ready.”
She declined to detail speci c impacts on the company’s operations but said it “remain(s) hopeful that the parties will be able to reach amicable agreements and the disruption and potential impact will be minimal.”
Walsh said the strike will have ripple e ects on Michigan’s economy, which is steeped in automotive.
“Shutting down any one part reverberates through the smallest and largest manufacturers, rather quickly,” Walsh said in an email.
“We are aware that the OEMs and their supply chain have been building up some inventory in anticipation of a strike for a few months. We are not aware of layo plans with any degree of speci city, but certainly expect that layo s throughout the supply chain are absolutely likely if a strike, rather limited or broad, continues.”
Dardas said he hopes the disruption passes quickly because smaller suppliers are not guaranteed to weather the storm.
“We’re still su ering from material economics, wage in ation, transportation costs — all that stu that started after COVID,” he said. “It’s still been pretty relentless with us.”
SEPTEMBER 18, 2023 | CRAIN’S DETROIT BUSINESS | 45
STRIKE From Page 1
AlphaUSA President and CEO Chuck Dardas poses for a photo at his plant in Livonia in 2021. NIC ANTAYA
Meet the adoptee leading one of the largest foster care nonpro ts in the state
The adopted son of a former Jesuit priest and a nun, Kevin Roach, CEO of Redford Township-based Methodist Children’s Home Society dba MCHS Family of Services, was born in South Korea and orphaned before coming to the U.S. when he was 6 years old. He had a troubled youth as he sought to nd his place in the world, but with the help of his parents, he eventually made his way to college and started out on a business path before he was drawn into social work. Roach, 41, has come full circle to work at residential foster care facilities in other states before following the woman he would marry to Michigan. He’s now leading an $18 million nonpro t that opened in 1917 as an orphanage during the last global pandemic before evolving into residential foster care and — under his direction — preventative services for children and families. His remarks have been edited for length and clarity.
By | Sherri Welch
You have had an interesting personal journey. Tell me about that.
Yeah, I’m a transplant to Michigan. I’ve been here for about 16 years. I was born in South Korea. I spent the rst several years of my life in an orphanage and was fortunate to be adopted by two of the most patient people in St. Louis. My parents actually met in a singles Catholic group in their 40s. And they were told at the time that they couldn’t have children. My dad was formerly a Jesuit priest and my mom was actually formerly in the convent. I had a very strong Catholic upbringing that I didn’t fully appreciate until I had my own children and I could fully appreciate the value of what the Catholic faith can bring. I spent my childhood all the way through my undergraduate years in St. Louis before moving up to the East Coast to continue pursuing my studies but also for work, before I eventually made my way back to the Midwest. I came to Michigan when I was 26.
You met your wife while nishing college in Philadelphia and commuting to New York City?
Yeah, it’s funny, when she rst told me she was from Detroit, I didn’t have the most positive response. at was in 2005.
ings in Detroit (and) Michigan had already been hit hard. I thought I would be on the East Coast for the rest of my life. And when she told me that she was from Detroit, I just said, “Well, I am not moving there.” Six months later, she’s like well, “I’m from Detroit, and that’s where I’ll be. Still would love to date you, I’m just saying.” at’s how I eventually made my way. But I was so stubborn that I didn’t actually move to Detroit. I moved to Indianapolis, four and a half hours or ve hours away. I was thinking I’m still not going to Detroit. Obviously, I made my way and eventually got to Detroit. I needed to because I wanted to keep this good thing going.
How and when did you get to Methodist Children’s Home?
It was 2015 and I saw a real golden opportunity. I was leading another agency in Flint. My wife was working down at Children’s Hospital. I wanted to be in the Detroit area and really saw a
unique challenge with Methodist Children’s Home Society. e work in residential care was certainly attractive, and I saw kind of Detroit coming back. Being in the Detroit area and being part of that is really what led me to Methodist Children’s Home Society. We’re in the heart of the community. It was that opportunity that I seized, and I haven’t looked back since.
You have taken MCHS in a new direction over the past eight years, right?
Yeah, while our core (and) 80% of our revenue was in residential treatment, eight years later, less than 20% is now in residential treatment. When I came on board in 2015, there were a few challenges that we needed to immediately address. is idea of institutionalizing children wasn’t a best practice. We felt that we had a larger role in building a more robust continuum (of services). It was that sense of urgency that said we really have to expand our foster care services and our adoption programs, take a look at independent living services (and) at other programs and services that (impact) why youth go into foster care or why they languished in the foster care system. We had to take a look at the housing piece, the education piece, the mental health piece. We have really expanded and grown and accelerated our focus (to) family and community services. We have multiple programs and services to serve that entire family unit, not just that individual child. e services that comprise MCHS are child welfare, transitional housing, education (K-8 charter school for children who have struggled in mainstream classroom settings) and mental health.
What would you say is the biggest issue facing child welfare agencies today??
e biggest challenge facing our agencies today is probably a combination of the workforce challenges but also the need to expand programs and services on that continuum. We certainly need to work with the state to fund a larger array of programs and services that our children and families need beyond just if you’re in foster care, this is what you get, or if you need
residential treatment, this is what you need. So, when we think about prevention services, we think about other services on that continuum before they even enter the system or are removed from the home or are placed in a residential facility like ours. It’s really the need to be able to nd other programs and services before that family reaches that point. But without adequate funding those are pretty big challenges.
MCHS is getting ready to launch two new pilot programs this fall, right?
Yeah, we’re excited that one of the newest housing programs is taking a look at youth homelessness for those age 18 to 24. We were excited to be selected by the Continuum of Care to pilot this new transitional housing and rapid rehousing program for these young adults in Wayne County. A second program related to that is called crisis mental health. It’s taking a look at understanding that mental health is one of those driving factors as it relates to housing instability. We learned that it’s the rst program in the country that HUD has funded to focus primarily on crisis mental health (rather than housing or emergency shelter).
I’ve also heard rumblings that MCHS is in some sort of talks focused on formal collaboration with one or more other nonpro ts. I think this is a great opportunity, right now for nonpro ts to really be exploring collaborations and partnerships. And we are always excited, even when they’ve been in nontraditional paths or maybe outside of our stream, knowing the type of work that is needed to raise healthy thriving families and individuals. We do
have a couple of partnerships with other nonpro ts where we’re going to be able to expand that impact in education as well as in housing. It would be collaborating certainly on an organizational level. It’s de nitely some growth opportunities that would help us serve even more children and families. Maybe the pandemic helped create that sense of urgency as it relates to sustainability and thinking outside of the box in terms of how we truly collaborate beyond just a referral collaboration. It’s been really exciting to be in a number of di erent conversations where gure out how
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