Crain's Detroit Business Sept. 20, 2021, issue by Crain's Detroit Business

SPECIAL MACKINAC POLICY CONFERENCE ISSUE

CRAINSDETROIT.COM I SEPTEMBER 20, 2021

HARD STOPS HOW METRO DETROIT’S FRACTURED TRANSIT SYSTEMS MAKE INEQUITIES WIDER. FORUM SECTION BEGINS ON PAGE 26

ILLUSTRATION BY ANDREA UCINI

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ALSO IN THIS ISSUE: DETROIT HOMECOMING PREVIEW, PAGE 3 50 NAMES TO KNOW IN GOVERNMENT, PAGE 10

NEED TO KNOW

Crime and courts

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT average of $18 an hour and offering signing bonuses in a tight job market as more people shop online.

`BEAUMONT: NONEMERGENCY PATIENTS SHOULD GO ELSEWHERE THE NEWS: Beaumont Health last week encouraged non-emergency patients to visit their physicians’ offices or urgent care locations instead of coming to the health system’s emergency rooms. The Southfield-based system said Wednesday that all of its 10 emergency departments were nearly full as it battles the latest COVID-19 surge and staffing troubles. WHY IT MATTERS: Depending on the time of day, all of the beds available at Beaumont’s hospitals are occupied, said David Donaldson, physician and chief of the emergency center at Troy Beaumont. Patients are being seen in the hallways, he said.

` AMAZON LOOKS TO HIRE 5,000 LOCALLY, HIKES PAY TO $18 THE NEWS: Amazon.com Inc. is seeking about 5,000 new workers in Michigan as part of a nationwide effort to hire 125,000 delivery and warehouse workers across the United States. The e-commerce behemoth also announced Tuesday that it is paying new hires an

WHY IT MATTERS: Like most employers, Amazon is contending with a shortage of applicants for open jobs. Executives at the Seattle-based company say they are also actively growing Amazon’s corporate presence in Detroit, and hiring 100 people, mostly in software development to expand its 400-person tech office in the city’s central business district.

` CRAIG CAMPAIGN GETS OFF TO A BUMPY START THE NEWS: The long-awaited kickoff of former Detroit Police Chief James Craig’s campaign for governor was disrupted Tuesday morning when protesters took over his news conference on Belle Isle’s Sunset Point. The protesters, who carried a banner for the Detroit Will Breathe activist group and chanted “Black lives matter,” marched into the park before Craig walked up to the podium surrounded by bodyguards. He later completed his announcement at the more secure Icon building, formerly the GM-UAW Center for Human Resources. WHY IT MATTERS: Craig is the best-known challenger to enter the race for the Republican Party nomination to challenge Democratic Gov. Gretchen Whitmer in the 2022 election.

` GM MAKES $50 MILLION COMMITMENT TO DETROIT THE NEWS: General Motors Co. has made a $50 million commitment to expand access to education and employment opportunities for Detroiters and strengthen the city’s neighborhoods. The Detroit-based carmaker is inviting nonprofits focused on providing access to pre-K-12 and adult education and employment opportunities for Detroiters and strengthening the city’s neighborhoods to apply for grant funding on its website. WHY IT MATTERS: The five-year philanthropic commitment is the single largest the carmaker has made in the century it’s operated in and supported the city, it said.

` BUILDING DEMOLISHED AFTER NEARBY ROAD BULGES THE NEWS: A commercial building in southwest Detroit was demolished after being damaged in a mysterious underground swelling event. The Saturday evening incident caused a portion of Dearborn Street between Fort and Miller streets to heave some 10 feet high, affecting the nearby natural gas line and causing major structural damage to 10015 W. Fort St., which houses the Stash Detroit medical marijuana provisioning center. Employees of Stash watched from outside the building as the ground rose over the course

Pizzeria owner sentenced to prison for PPP fraud ` A Macomb County pizzeria owner has been sentenced to nearly three years in prison after attempting to fraudulently claim close to $1 million in pandemic relief funds. Michael Bischoff, owner of businesses including Passport Pizza and Little Dino’s Pizza Express, pleaded guilty to one count of bank fraud in November. On Tuesday, he was sentenced to 32 months in prison. Prosecutors sought a minimum of 41 months in prison for Bischoff, noting Michael Bischoff, owner of Passport numerous previous convictions for conspiracy to commit wire fraud and bank fraud. Pizza and Little According to court documents, Bischoff over a Dino’s Pizza two-month period in 2020 attempted to illegally Express. obtain $931,772 in Payroll Protection Program funds. Those funds were earmarked to cover payroll and other expenses during the COVID-19 pandemic. Prosecutors said Bischoff, a 61-year-old Macomb Township resident, submitted nine PPP loan applications containing false information including the number of employees and payroll costs. The funds for five of those loan applications, totaling $593,590, were disbursed to Bischoff.

of about a half hour, Detroit COO Hakim Berry said.

Correction

WHY IT MATTERS: The cause of the eruption was still unknown late last week, and it will remain so until DTE Energy Co. can fix an underground gas main leak, the city said. It underscores problems with underground infrastructure that have plagued Michigan.

` A story on a Mackinac County economic development plan misstated the amount of a grant award for an engineering and feasibility study on electrifying the diesel-powered ferry fleet from St. Ignace to Mackinac Island. The award was $100,000.

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REAL ESTATE

Hantz quietly sells off $2.8M in properties as interest grows in neighborhood BY KIRK PINHO

John Hantz has been quietly selling off more than 100 properties in his Hantz Farms area on Detroit’s lower east side, although the deals amount to a fraction of what the serial entrepreneur owns in the area. Following a controversial city land sale criticized in some circles as a land grab executed in the throes of Detroit’s municipal bank-

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ruptcy, Hantz’s team says the more recent transactions are reflective of their efforts to improve the neighborhood sparking developer and business interest in the square mile where his holdings were assembled close to a decade ago. A review of Wayne County land records shows 147 properties have been sold for an estimated $2.8 million since May 2019, starting with 37 of those sold to the Detroit

Brownfield Redevelopment Authority as part of a land swap for the city’s deal for the $2.5 billion FCA US LLC, now Stellantis, Jeep assembly plant project. But the 100-plus other parcels have gone to people like Anthony Curis, who runs the Library Street Gallery in downtown Detroit; an entity tied to real estate broker Bill See HANTZ on Page 36

A tree farm lot near the corner of Pryor and McClellan | KURT NAGL/CRAIN’S DETROIT BUSINESS

DETROIT HOMECOMING 2021

Unhealthy numbers Hospitals shut down beds as staffing woes reach critical mass

Whitman

HOMECOMING HIGHLIGHTS Detroit Homecoming is returning for its eighth year, and the annual “expat” event is returning to a multiday in-person format for the first time since 2019.

BY DUSTIN WALSH

Beds sit idle at Henry Ford Health System’s five hospitals — most of those empty 120 beds are at its flagship hospital in Detroit and in Jackson. The patient monitors are off, void of beeps and electrocardiography line art. Its hospitals aren’t less busy — patients occupy 95 percent of the system’s 2,000 beds. Patients are backing up in emergency rooms waiting for open beds, sometimes as long as six hours. Melissa Reitz, principal of certificate of need lobbying firm RWC Advocacy, said 80 percent occupancy represents a busy hospital. Above 90 percent is a hospital overwhelmed. The issue is the health system hasn’t enough staff to man those beds. The entire health care sector is facing a longstanding labor shortage that predates COVID-19 but is exacerbated by the latest delta variant surge in the state. Michigan Medicine temporarily closed 13 beds last week. Currently about 180 beds at Beaumont Health are closed due to labor shortages, the hospital said in a statement to Crain’s. Beaumont announced Wednesday that its 10 emergency departments are “experiencing extreme numbers of patients” and are nearly full. Michigan Medicine did not make an executive available to talk about staffing and Henry Ford declined to further discuss the staffing shortages outside of a media call with reporters last week. See NUMBERS on Page 36

Farley

The annual event, produced by Crain’s Detroit Business, seeks to engage native metro Detroiters who found success in other cities — “expats,” if you will — with their hometown. The aim? To encourage them to invest in Detroit’s revitalization.

A book on Detroit native Delane Parnell’s life is set to be released in January 2022. Film and television production companies are bidding for the rights to the book, Parnell said, with the idea of putting his story on the screen. | SEAN YALDA

BRINGING IT HOME

Esports entrepreneur Parnell preps to unveil new ventures as his company grows BY JAY DAVIS

Detroit native Delane Parnell, whose Los Angeles-based esports company has netted more than $100 million in venture capital, will be spending more time at home. The founder of PlayVS, a growing competitor in the field of esports — that is, competitive video games — has a new business venture that aims to help Black-owned companies grow and create wealth that is taking aim at Detroit brands. Oh, and he's also built a house here. Parnell will be among featured speakers at Detroit Homecoming,

THE CONVERSATION: New MEDC leader wants other states to ‘fear’ Michigan in competition for business. PAGE 38

an annual event produced by Crain's Detroit Business that brings Detroit "expats" who have found success in other cities back to their hometown to re-engage and potentially invest in the city (see box at right). “I’m super excited,” said Parnell, making a name for himself in the tech world after growing up in a home with no Internet access.

Expanding his reach The 29-year-old Parnell, a native of the west side of Detroit and graduate of Southfield High who moved to Los Angeles in 2018, has raised $107 million in

investment for his 4-year-old e-sports company. PlayVS is now sanctioned by high school athletic associations in 24 states, allowing schools to form esports teams and compete for state championships in games such as "Super Smash Bros." and "Madden NFL 21." At the collegiate level, PlayVS operates free, official, national leagues for partnered video-game publishers at schools across the U.S. and Canada. PlayVS investors include the San Francisco 49ers, Sean “Diddy” See PARNELL on Page 35

Detroit Homecoming has sparked an estimated $600 million in completed or commited investments in the city from expats and other attendees of the event. Among the key speakers at this year’s Homecoming are PlayVS founder Delane Parnell, Detroit Lions principal owner Sheila Ford Hamp, Ford Motor Co. President and CEO Jim Farley, and former eBay and Hewlett-Packard CEO Meg Whitman, who once helmed Farmington Hills-based FTD Florists. Speakers at the invitation-only event will be live streamed on crainsdetroit.com; programming runs 9 a.m.-noon Friday and Saturday. You can check out the full agenda at detroithomecoming.com.

SOME HIGHLIGHTS: ` FRIDAY, SEPT. 24 9 a.m., The $1.6 billion questions: Gene Sperling, White House COVID rescue czar, in conversation with Kresge Foundation CEO Rip Rapson; Detroit economic chief Nicole Sherard-Freeman; and Detroit schools superintendent Nikolai Vitti. on what to do with rescue funds headed to Detroit. See HOMECOMING on Page 35

50 NAMES TO KNOW IN GOVERNMENT: If ever there was a time when relationships with people in government mattered, the COVID-19 pandemic was it. 50 Names to Know in Government highlights the officials who make things happen. PAGE 10 SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 3

NONPROFITS

Michigan foundations want to help shape stimulus investments Philanthropy working with state, counties, cities to encourage equity-centered initiatives BY SHERRI WELCH

Michigan’s foundations are working with state and local governments to shape the allocation of $11 billion in stimulus funding toward equity-centered approaches. At the same time, they are in conversations with communities to ensure they have the municipal and nonprofit capacity needed to receive, oversee and deploy stimulus dollars in an impactful way and are looking for opportunities to provide resources to help coordinate state, county, municipal and school funding. The unprecedented influx of federal funding is spurring Michigan foundations to think strategically about their role as the funds are deployed, said Kyle Caldwell, president of the Council of Michigan Foundations. “We are trying to think about and learn from this to help shape what are likely to be even larger influxes to the infrastructure by the federal government.” In the past, philanthropy’s role has been to match, leverage and invest funding where there are gaps, he said. But with the stimulus funding, there is an opportunity for philanthropy to be a part of strategically shaping technical and other support, bringing in expertise and in some

Caldwell

Egner

cases, stacking and braiding philanthropic funding to cover planning, evaluation and data infrastructure needs not covered by stimulus to make the best use of federal resources being invested in Michigan. Foundations are well-positioned to support municipal efforts, given that they can provide more flexible support that doesn’t have the restrictions of public funding, can deploy it more quickly and be part of a longterm strategy because of the power of endowments, Caldwell said. “This is an opportunity for philanthropy to be a strategic partner, and shame on us if we don’t take advantage if it,” he said. “This is what our communities need right now.” A group of CMF member foundations from around the state has been meeting for the past month and half and working through the associa-

tion’s office of the foundation liaison in Gov. Gretchen Whitmer’s office to inform and support her budget office as it shapes criteria for the use of the stimulus funds, Caldwell said. More recently, community foundations and other CMF members have engaged in conversations with members of the Michigan Association of Counties during regional summits in Grand Rapids, Escanaba, Frankenmuth and Gaylord to encourage counties to understand community needs, capacity to take on large chunks of stimulus funds and interest/capacity in a new pilot foundations have launched. “When we were working with members in the initial part of the pandemic, all were concerned about disparities. Access to education, health care and economic prosperity were three that came up,” Caldwell said. CMF members have been trying to figure out how they could help the populations experiencing the greatest disparities and most harmed by the pandemic, he said. “As local units of government are thinking about utilization of these dollars, we’re hoping we can target and shape those public investments to those most impacted. That’s related to poverty and certainly, we see barriers for persons of color.”

A $2 million pilot launched by CMF and its members will support regional efforts focused on targeting the stimulus dollars toward equity and equitable outcomes. The Statewide Equity Fund Strategic Support Pilot will provide five regions with funding for technical expertise, convening power and some experimental dollars to support development of equity plans for stimulus funding. Melanca Clark of the Hudson-Webber Foundation and Diana Sieger of the Grand Rapids Community Foundation are co-chairing the group of more than two dozen foundations and third-party organizations working on the pilot. Other members of the work group include: Ballmer Group, Community Foundation of Greater Flint, Community Foundation for Southeast Michigan, Frey Foundation, Herbert H. and Grace A. Dow Foundation, Kresge Foundation, Ralph C. Wilson Jr. Foundation, William Davidson Foundation and W.K. Kellogg Foundation. CMF and its members are also working with the Michigan Municipal League, Michigan Association of Regions and others to identify the five regions. “How do we provide local municipalities, nonprofits, and our mem-

bers the tools they need to do planning and smart investments with this once-in-a-lifetime infusion of federal resources and target those towards more equitable outcomes, towards those who’ve been most affected by the pandemic?” Caldwell said. “When you solve challenges for those most affected, you create solutions and systems that benefit everyone up and down the income scale.” The sector’s efforts tied to the American Rescue Plan Act funding will be the topic of discussion during a Mackinac Policy Conference session on Wednesday. David Egner, president and CEO of the Ralph C. Wilson Jr. Foundation will moderate a panel that includes Caldwell; Stephan Currie, executive director of the Michigan Association of Counties; and Alize Asberry Payne, racial equity officer, Washtenaw County. “The real question is how philanthropy can help fill gaps in what the federal dollars won’t cover,” Egner said. Foundations can provide resources to help coordinate the various streams of public funding to the state, counties, municipalities and schools, which aren’t required to coordinate, he said. See FOUNDATIONS on Page 34

NONPROFITS

William Davidson Foundation plans new HQ, Detroit office, pavilion Acquires Bloomfield Hills site to build facility, park sports house to be named for philanthropist BY SHERRI WELCH

In the 16 years since it began operating, the William Davidson Foundation has kept a low profile, despite being one of the largest Michigan-based foundations. Now the foundation is increasing its profile with plans to build a new headquarters building in Bloomfield Hills and open a satellite office in downtown Detroit. In addition, the Detroit Riverfront Conservancy announced Monday that it’s naming the open-air pavilion in development at the Ralph C. Wilson Jr. Centennial Park on the west riverfront after the foundation’s namesake to recognize grants totaling $11 million toward the riverfront development. The Davidson Foundation has grown into one of the largest foundations in the state since it was founded in 2005, with assets totaling approximately $1.4 billion at the end of 2020. It recently acquired property on Woodward Avenue north of Quarton Road on the former site of the Birmingham Masonic Lodge for an undisclosed price. It plans to build its new headquarters facility on the site in the coming years. At the same time, the foundation said it plans to open a small satellite office in the Henry Ford Detroit Pistons Performance Center in Detroit’s New Center neighborhood as a place to bring together grantees, philanthropic partners and other stakeholders. It will join other foundations with either headquarters or satellite offices in Detroit, including Children’s Foundation, Community Foundation of

An open-air pavilion in the Ralph C. Wilson Jr. Centennial Park on Detroit’s west riverfront will be known as the William Davidson Sports House in recognition of $11 million in grants made by the William Davidson Foundation. |DETROIT RIVERFRONT CONSERVANCY

McKeever

Wallace

Southeast Michigan, Hudson-Webber Foundation, Kresge Foundation, McGregor Fund, Ralph C. Wilson Jr. Foundation, Skillman Foundation and W.K. Kellogg Foundation. “With these moves, our goal is to create great places for our people to work and gather with others, spaces that also help represent and reflect

4 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

our commitment to the Southeast Michigan region and the Woodward corridor from the Detroit Riverfront to Pontiac, in particular,” said Darin McKeever, president and CEO of the William Davidson Foundation Over the past decade, the foundation has made $150 million in grants to support economic quality of life and economic growth in Southeast Michigan. Another $350 million in grants has gone to support the Jewish community and state of Israel. “The last year and a half have brought so much of our region’s most critical and under-appreciated assets into sharper focus: our resilient small business owners and entrepreneurs, our inspiring arts and cultural institutions, and the public parks and other

gathering places where we have found comfort and connection,” McKeever said. “These are areas the William Davidson Foundation knows well, and we look forward to continuing our work with our grantees and other partners to ensure the success of the people and places Southeast Michigan needs for a successful future.” Davidson, who was president and CEO of Guardian Industries Corp. and a philanthropist, was also the owner of the Detroit Pistons and Detroit Shock basketball teams and the Tampa Bay Lightning hockey team. Davidson believed sports was a way to bring people together, McKeever said. The new William Davidson Sport House at the riverfront park “will be a space for kids, parents and other residents to really have a great time down on the riverfront,” he said. In a fitting tribute, the Sport House will feature two basketball courts and a permanent raised canopy with skylights to provide flexible space for year-round use. It will be designed to accommodate activities like rollerskating, soccer and kickball games and host other structures during the winter for programs, said Mark Wallace, president and CEO of the Detroit Riverfront Conservancy. It will be the first significant U.S. park fixture designed by award-winning Ghanaian-British architect Sir David Adjaye, who designed the National Museum of African American History and Culture in Washington, D.C., Wallace said. “It’s going to be an iconic element of the park,” Wallace said of the new

pavilion slated for completion in 2023, and the first thing one’s eyes pick up when traveling down Rosa Parks Boulevard or West Jefferson Avenue. “There will be two things that inspire people to run into the park: one will be the sports house and (the other) the brown bear in the Delta Dental Play Garden,” Wallace said. The naming of the Sport House was to be celebrated at the Conservancy’s “Shimmer on the River” fundraising event Friday night and the West Riverfront Block Party on Saturday. The Detroit Riverfront Conservancy is developing the Ralph C. Wilson Jr. Centennial Park at a cost of $50 million-$60 million as an extension of the 5.5-mile riverwalk it’s constructing in the city. “No project truly connects the region and plays a more central role in Detroit’s resurgence than the revitalization of more than five miles of the Detroit Riverfront from the Ambassador Bridge to Belle Isle,” McKeever said. The two largest gifts made by the William Davidson Foundation over the past two to three years are supporting work at the park on the west riverfront and the conservancy’s work with the city of Detroit on the east riverfront. That framework includes development of the former Uniroyal site, which is underway, and Robert C. Valade Park, along with the Dennis Archer Greenway and new bike lanes on Jefferson Avenue, Wallace said. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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REAL ESTATE INSIDER

Emagine Entertainment Inc. hopes to build its Detroit movie theater on a site that is being partially used for construction of an I-94 bridge that will ultimately be moved to another location. | KIRK PINHO/CRAIN’S DETROIT BUSINESS

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Here’s where Emagine and Big Sean want to put a Detroit movie theater Emagine Entertainment Inc. wants to build its new Detroit movie theater with rapper Sean “Big Sean” Anderson on an oblong Wayne State UniKirk versity-owned PINHO property off I-94 sandwiched between a pair of parking structures near the law school. The vision for what the university calls Lot 22, however, has been slow to proceed and Paul Glantz, cofounder and chairman of Emagine, said that while he hopes to reach an agreement with WSU, his alma mater, he is beginning to explore other unspecified areas in the city as a backup plan. Wayne State publicly acknowledged in late June that Emagine was a finalist for university property but that announcement flew under the radar. Wayne State declined to comment for this piece. “We aspire to reach an agreement with Wayne State and we would be delighted to locate on their property,” Glantz told me. This marks the first time a specific site has been publicly confirmed for the planned $25 million theater, which was announced in February 2018 as the Big Sean Theatre Powered by Emagine. But things have been largely quiet, disrupted in no small part by a global pandemic that crippled the movie theater industry. Sources told me several months after that announcement that there were negotiations to put the theater at Michigan Central Station, which Ford Motor Co. had just paid $90 million for, but nothing materialized. Plans call for a 10- to 12-screen multiplex that would seat between 1,000 and 1,300 people. It would include a music venue that could also host events such as lectures, seminars and comedy shows. Detroit has few movie theaters. There is Cinema Detroit on Third Avenue, Bel Air 10 on Eight Mile Road on the city’s northeast side and the

The former UAW-GM Center for Human Resources has been rebranded as The Icon. The new ownership group has also hired Signature Associates Inc. to market the property. | COURTESY OF SIGNATURE ASSOCIATES INC.

“WE ASPIRE TO REACH AN AGREEMENT WITH WAYNE STATE AND WE WOULD BE DELIGHTED TO LOCATE ON THEIR PROPERTY.” — Paul Glantz, cofounder and chairman, Emagine

Redford Theatre on the northwest side. The Ren Cen 4 theater closed in 2015 after almost three decades in operation. It was on the second floor of the Renaissance Center’s Tower 200 and was 18,000 square feet. A plan to build a nine-screen Alamo Drafthouse Cinemas LLC location on a roughly 1-acre property on Stimson Street off Martin Luther King Jr. Boulevard west of Woodward Avenue was torpedoed in December 2019 after an arrangement for 300 parking spaces to accommodate moviegoers could not be reached.

Signature nabs UAW building listing, renames it Get a load of the new branding for the UAW-GM Center for Human Resources on the Detroit riverfront. The new ownership of the

420,000-square-foot building is now calling it “The Icon.” Real estate developers Dominic Moceri and Christos Moisides picked up the property, which sits on 18 acres at 200 Walker St., for $34 million. “My partner Dominic Moceri came up with it to honor his father Dominic Moceri Sr., as well as my father-in-law Ted Gatzaros,” Moisides said Tuesday morning in a text. “They were iconic images of the American Dream and icons of this region.” They now have hired Southfield-based Signature Associates Inc. to market the property for lease. “Signature Associates is thrilled to be awarded the exclusive sale and leasing of The ICON,” said John Boyd, executive vice president of Signature Associates, said in a press release. “The location is one of a kind with amazing views of Detroit and Canada. We are very much looking forward to the future of this campus.” The union has been the only user since the complex was built in the early 2000s. The sale was part of an agreement between the union and automaker reached in 2019 as part of a UAW strike settlement. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

REAL ESTATE

THE TRANSFORMATION BEGINS HERE

The Edward Hotel and Convention Center in Dearborn, which opened as the Hyatt Regency in 1976, is under contract. | THE EDWARD HOTEL AND CONVENTION CENTER

Buyer emerges for former Hyatt Regency Dearborn Unnamed firm to close on deal within 60 days BY SHERRI WELCH

The U.S. Marshals Service is under contract for the sale of Michigan’s second largest hotel property. An attorney for the buyer, Amir Makled, shareholder at Hall Makled P.C., declined to name his client but said the New York-based company plans to convert the 772room Edward Hotel & Convention Center in Dearborn into a mixed-family, market-rate apartment complex with 375 units. It’s not yet clear what the plan is for the restaurant and convention/ event spaces that drew people to the property, which operated for decades as the Hyatt Regency Dearborn before losing the flag when needed updates were not completed and switching to a series of private brands under various owners.

tually be working with the purchaser of the property to address all of their needs for the future of the site,” the city said in an emailed statement. “We are hopeful that this longstanding property will be utilized in a way that supports the growth and expansion of Dearborn.” Patrick Ong, assistant project manager for Bloomfield Hillsbased Acquest Realty Advisors Inc., said last week that his company, plus the city of Dearborn and Ford Land Development Corp., had worked together prior to the onset of the COVID-19 pandemic “to see if we could do anything with it (the property).” However, he said since the global health crisis, the effort “went silent.” The hotel and convention center closed in 2018 after being frozen as part of a Canadian legal case

“WE THINK THE CITY OF DEARBORN WILL GREATLY BENEFIT FROM THE PURCHASE. THE REGION WILL HAVE A NEW, VERY WELL-MAINTAINED PROPERTY THAT CAN BRING SOME ECONOMIC LIFE TO THE AREA.”

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— Amir Makled, shareholder at Hall Makled P.C, attorney for buyer

Makled declined to disclose the sales price but said the hope is to close on the deal within 60 days. Jonna Group, part of the Southfield office of Colliers International Inc., served as the local broker for the U.S. Marshals Service, which is charged with selling forfeited properties for the U.S. government and took control of the Dearborn hotel. The company set to buy the former hotel and conference center manages 15,000 apartments across 17 states, Makled said. “We have a well-capitalized buyer, and they have the experience and knowledge to transform this property to the glamor it once held.” “We think the city of Dearborn will greatly benefit from the purchase. The region will have a new, very well-maintained property that can bring some economic life to the area,” he said. “The city of Dearborn will even-

against its former owner, Xiao Hua “Edward” Gong, who was charged with fraud and money laundering, in connection with the sale of worthless stock certificates from 2012 to 2017, charges he denied. Early this year, an attorney for Gong told Crain’s that Gong had resolved the charges with the Canadian authorities and, as part of his agreement with that government, had agreed to forfeit the Dearborn hotel, which has been vacant since 2018. Through an agreement with the U.S. courts, the U.S. Marshals Service stepped in to sell the property. The U.S. Marshals Service did not immediately respond to a request for comment last week. Crain’s senior reporter Kirk Pinho contributed to this story. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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EDITORIAL

COMMENTARY

Why has so much power been granted to so few? BY DOUG DEVOS

FRANK/CRAIN’S DETROIT BUSINESS

‘Eruption’ a warning of underground decay

etween Mother Nature and man-made mayhem, it’s been a summer of infrastructure misery in Michigan. That’s especially true in Detroit’s most vulnerable neighborhoods and business corridors, where fallout from damage tends to hit harder and last longer — as evidenced by a mysterious road buckling incident on the city’s southwest side last week. It’s past time to prioritize fixes. Along with repairs, Michigan needs an aggressive, proactive assessment of the condition of the entire underground network that keeps our homes and offices habitable. The latest blow for residents of Detroit’s southwest side was a street eruption so unusual that nobody could define it. In our Crain’s Detroit Business report, we settled on “mysterious underground swelling event,” which is just as concerning as it sounds. If you saw it in a movie, you’d know it wouldn’t end well. But this isn’t the Saturday afternoon “Creature Feature.” The incident on the evening of Sept. 11 ALONG WITH caused a portion of REPAIRS, Dearborn Street beMICHIGAN NEEDS tween Fort and Miller to heave some AN AGGRESSIVE, streets 10 feet high, affecting the nearby natural PROACTIVE gas line and causing ASSESSMENT OF major structural THE CONDITION damage to 10015 W. Fort St., which OF THE ENTIRE housed the Stash Demedical mariUNDERGROUND troit juana provisioning NETWORK center. The building had to be demolished so crews could excavate the site and investigate. Combined with the benzene leak in Flat Rock’s sewer system that drove hundreds of residents from their homes — not to mention general flooding, power outages and sewer backups throughout the region — it’s clear we’re at a crisis point.

Ford Motor Co. took responsibility for the Flat Rock leak, but there’s less known about the southwest Detroit incident. The eruption of an entire street is indicative of all we don’t know about what’s lurking underground. Was it a faulty water main, natural gas line, something else? An alphabet soup of agencies is working together to investigate: The Detroit Department of Public Works is working with DTE and Great Lakes Water Authority, as well as the Detroit Fire Department, Department of Homeland Security and Emergency Management, Building Safety, Engineering and Environmental Department, U.S. Environmental Protection Agency and the Michigan Department of Environment, Great Lakes and Energy. We’re glad to have all hands on deck, but the dearth of information after the eruption shows the need for a more centralized, coordinated response to such emergencies. Someone needs to be the end of the line on passing the buck. None of this is new. In 2018, the American Society of Civil Engineers’ 2018 report card ranked the state’s infrastructure a D+ on an A-to-F scale, while the energy grid was given a C- grade. Gov. Gretchen Whitmer this week outlined priorities for the $1.4 billion in COVID relief funds coming Michigan’s way that rightly emphasize health care needs, from new buildings to upgraded technology. If she’s waiting on the long-delayed federal infrastructure bill to fix the streets and sewer lines that are literally crumbling around us, however, we may be in trouble. “Infrastructure Week” has become something of a recurring punchline in Washington. Unless we get serious as a state about funding it, no one’s going to be laughing.

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

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 8 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

See DEVOS on Page 9

DANIEL SAAD FOR CRAIN’S DETROIT BUSINESS

A bulge in the street in southwest Detroit whose cause was still undetermined late last week. | ANNALISE

onstitution Day is an overlooked holiday. Yet this Sept. 17 should not go unnoticed. The foundational principle of our governing charter is at risk of being forgotten. Recalling it is essential to our national future. Doug DeVos is With the distance of co-chairman of 234 years, it’s easy to forAmway and get the revolutionary nachairman of the ture of the Constitution. National Like every country, Constitution America’s founders Center. asked themselves a simple question: Where does power come from? Yet unlike other countries, they gave a radical answer. It is the Constitution’s first three words: “We the people.” This principle turned history on its head. It recognized the truth that you and I and all our fellow citizens are the ultimate authority. From the moment those words were written, it was obvious: America fell short. Our country has allowed terrible wrongs to exist, most notably slavery. Such injustices made “we the people” more hope than fact. They concentrated power in the hands of a few, despite the moral mandate to empower the many. Previous generations strove to uphold that promise. The abolitionists helped end slavery after the Civil War, the suffragettes won the right to vote for women, the civil rights movement moved us closer to equal protection under the law. With each barrier that was broken, the country moved closer to “we the people.” But somewhere along the way, that progress

stalled, and even reversed. Not in every respect. The quest to empower all our fellow citizens is alive and well in movements for equality under the law, criminal justice reform, a better education system, and economic opportunity for all, among others. Yet in other ways, the recent trend has been to disempower people. Power is being taken from the many and given to a select few. This trend takes many forms, and it defies a simplistic left-versus-right framework. To start, our elected officials have asserted control over ever more of daily life. Across both parties, there is a growing sense that nothing is beyond the government’s purview — that all can be resolved by federal legislation and executive orders. Yet a government capable of doing everything will leave the people with the freedom to do nothing. Elected officials have also delegated their power to the judicial branch. Rather than take hard votes on tough issues, they’ve asked the Supreme Court to decide some of the most divisive and consequential issues. Yet the American people gave lawmakers the power to legislate, and by giving that power away to unelected judges, we the people are less able to hold our leaders accountable and shift the policies that govern our lives. Finally, our officials have created a government insulated from the people’s control. It’s called the “administrative state,” and it’s so large, even Washington, D.C., doesn’t know how many departments, agencies, and commissions it has created. This vast bureaucracy has authority to control the economy and even create federal crimes — 300,000 and counting. Yet no American ever voted for it, and none of us can vote against it. Do we really want power to reside with the unelected and unaccountable?

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.

LETTER TO THE EDITOR

Historic moment offers chance to rework Michigan’s economic strategy TO THE EDITOR: The last year and a half caused many of us to pause and reflect on our future, and our state should do the same. Our economy, workplaces and the industries that drive much of Michigan’s success are changing rapidly. The question now is: “Can Michigan emerge from these changes stronger and more prosperous?” We emphatically believe the answer is yes, but it will take a sustained, unified commitment from leaders at all levels — from our businesses, our communities, and our state. The good news is Michiganders know the meaning of hard work and never shrinking from a challenge. In the coming years we’ll need to swiftly develop, attract and retain talent in a labor market upended by COVID-19. We also need to aggressively diversify the economy, which includes responding to the needs of a rapidly changing automobile industry as it transitions to electric vehicles. We know Michigan has the capability to do so, and it will require that our economic development strategy and systems are best-inclass and bridge the gap between political parties, regions and industries. Michigan’s economic development agencies, including the Michigan Economic Development Corp., have been essential in supporting job creation, making our state more competitive, and improving the quality of life for all residents. They will need to continue to have the right structure and resources to quickly adapt and meet the challenges of the coming decade. We also need to leverage and build upon a strong foundation of assets — dynamic regions, a committed business community, strong research institutions, universities, colleges, and a talented workforce. Creating, innovating, and building — it’s what we do in Michigan. Simply put, to help Michigan emerge from the pandemic and become a top state for growth we need: ` To craft a bold economic development strategy that sets a course for Michigan’s economic resurgence for decades to come, transcending political cycles and terms of office. ` A specific plan to keep Michigan No. 1 in advanced mobility and electric vehicle research and development and manufacturing. ` A state economic development system that evolves and is best-inclass, with the tools needed to grow jobs and attract new companies. ` Significant investments in people, education systems and talent development. ` Strengthened regions that retain and attract people and businesses. ` To provide opportunity for all residents by removing barriers to work and narrowing equity gaps. ` To ensure that Michigan’s business ecosystem, including its infrastructure, supports economic growth. ` To grow our innovation culture that supports early-state, high-potential firms of all types. Michigan’s success depends on our commitment to a long-term and consistent strategy, which in the past we have found difficult to

maintain, regardless of who is elected to office. In a politically and geographically divided state, it can feel almost impossible to achieve, but it is critical to overcoming future obstacles. We have some near-term opportunities to show it’s possible. With the use of one-time American Rescue Plan funding and budget surpluses, we can invest deeply in the transformational investments mentioned above at both the state and regional level. With a new leader at the Michigan Economic Development Corp., the time is right to evolve our economic development strategy — and systems too. Let’s not miss this once-in-a-gen-

eration opportunity to plan and invest in Michigan’s future economic prosperity and secure our place in driving ingenuity and productivity. Modernizing Michigan’s approach to job and wealth creation is an investment in our population that will pay dividends for decades to come. Business Leaders for Michigan, Jeff Donofrio, president and CEO Economic Development Leaders for Michigan: Paul Krutko, president and CEO, Ann Arbor Spark Rob Cleveland, president and CEO, Cornerstone Alliance Kevin Johnson, president and CEO, Detroit Economic Growth Corp. Maureen Donohue Krauss,

president and CEO, Detroit Regional Partnership Marty Fittante, CEO, InvestUP; Amy Clickner, CEO, Lake Superior Community Partnership Jennifer Owens, president, Lakeshore Advantage Bob Trezise, president and CEO, Lansing Economic Area Partnership James McBryde, president and CEO, Middle Michigan Economic Corp. JoAnn Crary, president, Saginaw Future Ron Kitchens, senior partner and CEO, Southwest Michigan First Randy Thelen, president and CEO, The Right Place Inc.

WE NEED TO LEVERAGE AND BUILD UPON A STRONG FOUNDATION OF ASSETS — DYNAMIC REGIONS, A COMMITTED BUSINESS COMMUNITY, STRONG RESEARCH INSTITUTIONS, UNIVERSITIES, COLLEGES, AND A TALENTED WORKFORCE. CREATING, INNOVATING, AND BUILDING.

LEARN LIKE A WARRIOR AND CALL DETROIT HOME There is a lot that’s exciting about Wayne State University, and living here lets you experience it all. Our anything-but-ordinary housing options boast modern amenities, as well as unique areas to study, rest and connect. All this in the heart of Detroit, the centerpiece of so many opportunities. Now that we’ve welcomed students, faculty and staff back to campus to live, learn, work and play, we’re reminded of what makes our community great: its people. So, schedule a tour, which includes our incredible apartments and residence halls. You’ll see how just one visit to our campus can turn anyone into a Warrior for life.

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SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 9

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f there was ever a time when relationships with people in government mattered, this pandemic is it. From March 10, 2020, when the first cases of COVID-19 were detected in Michigan, until present, the lines of communication between the public and private sectors have been critical to doing business in Michigan. This second edition of 50 Names to Know in Government from Crain’s Detroit Business features government officials in both prominent public-facing and behind-thescenes roles in the governor’s office, state departments, county government and Detroit City Hall. These professionals run government agencies whose missions intersect with the interests of businesses large and small and not-for-profit organizations. They are subject-matter experts in their individual areas of public affairs and policy. The in-person return of the Detroit Regional Chamber’s annual Mackinac Policy Conference is a good opportunity to get to know some of the government leaders featured in this year’s guide. If you recognize them from this booklet on the Grand Hotel’s big porch or on the Shepler’s Ferry ride back to the mainland, strike up a conversation. Because as the pandemic has shown us over and over again, relationships and networks matter in times of turbulence. STORIES BY CHAD LIVENGOOD

10 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

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PAUL AJEGBA

STEPHANIE BECKHORN

Director

Director of the Office of Employment and Training

Michigan Department of Transportation

Why he should be on your speed dial: Paul Ajegba is a 30-year veteran of the Michigan Department of Transportation, which plays a major role in economic and real estate development deals along stateowned roadways and highways. An engineer by trade, Paul leads a 2,600-employee state agency with a $5 billion annual budget that’s reHOW TO REACH HIM: sponsible for the Email: Ajegbap@ construction, mainmichigan.gov tenance and operaLinkedIn: linkedin. tion of nearly 10,000 com/in/paul-ajegbamiles of state higha4419876/ ways and trunkline roads. Paul is currently overseeing MDOT’s deployment of Gov. Gretchen Whitmer’s $3.5 billion Rebuilding Michigan bond program that includes the reconstruction of several stretches of freeways in metro Detroit. Whitmer appointed Paul director of MDOT when she took office in January 2019. In that position, Paul also is a member of the State Administrative Board — the clearinghouse committee for large procurement contracts for state agencies — and the Michigan Strategic Fund board, which approves tax incentives for businesses through the Michigan Economic Development Corp.

Michigan Department of Labor and Economic Opportunity

GENELLE ALLEN Chief Operating Officer | Wayne County Executive Warren Evans

Why she should be on your speed dial: Genelle is a veteran of the public sector, having spent more than 15 years in legal counsel and executive roles with the Wayne County Airport Authority, which oversees operations of Detroit Metropolitan Airport and the Willow Run Airport. As chief operating officer in Wayne County Executive Warren Evans’ administration, Genelle oversees several operating and administrative departHOW TO REACH HER: ments, including the personnel/ Email: gallen@waynecounty.com human resources, information techLinkedIn: linkedin.com/in/genelle-m-allen-93a20614/ nology and health departments. Through the COVID-19 pandemic, Genelle has led the county’s daily response, including overseeing mass testing and vaccination initiatives. Genelle is the county’s conduit with philanthropic foundations and nonprofit organizations focused on addressing social determinants of health that cause significant disparities in health outcomes for children and families. Genelle joined the Evans administration in 2015 as an assistant county executive and served two stints as interim CEO of the airport authority in 2010 and 2018. Before working for the airport authority, Genelle was a supervisory attorney in the city of Detroit’s law department.

Why she should be on your speed dial: Stephanie Beckhorn is a deputy director in LEO who runs the department’s programs focused on workforce development, as well as vocational rehabilitation to support individuals with disabilities who need help HOW TO REACH HER: gaining and retainEmail: BeckhornS@ ing employment michigan.gov through Michigan Twitter: @SLBeckhorn Rehabilitation Services. Her office LinkedIn: linkedin. also oversees the com/in/stephaniestate Bureau of Serbeckhorn-5201b22a vices for Blind Persons. With two decades of experience in workforce and economic development, Stephanie is a veteran of the state’s labor department, which has been renamed and reorganized multiple times over the years. She was previously acting director of the department before Gov. Gretchen Whitmer reorganized it in 2019. In 2013, she became the director of workforce policy and strategic planning for the Michigan Workforce Development Agency under the Snyder administration.

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HAKIM BERRY Chief Operating Officer Detroit Mayor Mike Duggan

HOW TO REACH HIM:

COMING TO

BIRMING

HAM

MapleBates

Email: berryh@ detroitmi.gov LinkedIn: linkedin. com/in/hakim-w-berry

Why he should be on your speed dial: Hakim Berry is one of the go-to senior members of the Duggan administration, overseeing daily operations of municipal government in Michigan’s largest city. During the COVID-19 pandemic, Hakim led the city’s partnership with health care professionals to stand up the region’s largest COVID-testing site at the former Michigan State Fairgrounds, followed by operating the region’s largest mass vaccinations site at TCF Center. Duggan tapped Hakim to be COO in December 2018 after Hakim was previously the city’s chief labor union negotiator. Hakim is among a legion of former Detroit Medical Center managers who previously worked for Duggan when the mayor was CEO of the DMC. Berry also previously worked in labor relations for DTE Energy Co. and DaimlerChrysler, one of the predecessor companies of the automaker now known as Stellantis.

MELANIE BROWN Deputy Chief of Staff Gov. Gretchen Whitmer

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Why she should be on your speed dial: Melanie, who goes by Mel, oversees three teams within the governor’s office: appointments, community affairs and constituent services. Her teams are the front-line points of contact for constituents, business owners and organizations with an issue or problem that involves a state agency or the governor. Mel joined Whitmer’s office in January 2019 as the new governor’s community affairs director, serving as a conduit at the local level for navigating state government. In October 2020, Whitmer promoted Mel to one of the three deputy chief of staff positions within her inner circle. Mel has worked in state government for nearly 15 years. She previously worked in the state departments of licensing and regulatory affairs, environmental quality and civil rights under both the Granholm and Snyder administrations.

ANTOINE BRYANT

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Director of Planning and Development Detroit Mayor Mike Duggan

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Why he should be on your speed dial: In recent years, there has been perhaps no more influential government agency shaping Detroit’s revitalization than the city’s Planning and Development Department. This city agency is the gatekeeper for residential, commercial and industrial redevelopment in Detroit. In July, Antoine took over as the Duggan administration’s planning and development director following a nationwide search to replace Maurice Cox, who left Detroit in the fall of 2019 to become Chicago’s top planner. Antoine has spent 25 years in city planning and architecture, mostly in Texas. Antoine came to Detroit from the Houston office of Ohio-based Moody Nolan, where he was a business development director. In Houston, Antoine also was a member of the planning commission for Texas’ largest city.

SEAN CARLSON Deputy County Executive Oakland County Executive Dave Coulter

Why he should be on your speed dial: Sean directs the economic development work of Michigan’s second-largest county. Sean came to the Coulter administration from the Michigan Economic Development Corp., where he HOW TO REACH HIM: was vice Email: Carlsons@ president of oakgov.com international trade and executive director of the Michigan Defense Center, where he focused on efforts to grow Michigan’s aerospace and defense contracting industries and help small businesses break into that sector. A U.S. Air Force veteran and retired lieutenant colonel, Sean was a senior deputy director of the Michigan Department of Management & Budget during the Granholm administration. In that role he was recognized by the National Association of Government Accountants for overhauling the state’s procurement and contracting operations. In Oakland County government, Sean also is responsible for managing departments that handle the county’s operating budget, accounting, community affairs, equalization, information technology, payroll and purchasing.

At D e t r o i t P u b l i c S c h o o l s C o m m u n i t y D i s t r i c t , o u r s t u d e n t s c o m e to u s s e e k i n g k n o w l e d g e , s k i l l s , a n d c o n ﬁ d e n c e n e c e s s a r y to t h r i v e i n o u r c i t y, o u r n a t i o n , a n d our world. They reflect the legacy and pride of those who came before them and b r i n g t h e i r o w n u n i q u e s w a g g e r - t h e i r b e s t s e l v e s to i n s p i r e u s e v e r y d a y. To k e e p t h a t s p i r i t h i g h , e v e r y o n e m u s t c o m e to g e t h e r a n d d o t h e i r p a r t to e n s u r e our students rise. I T ’ S T R U E , A C E RTA I N M AG I C H A P P E N S I N O U R C L A S S R O O M S , A N D W E C A N ’ T WA I T TO E D U C AT E A N D E M P OW E R D E T R O I T ’ S N E X T L E G E N D S A N D L E A D E R S .

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HILARIE CHAMBERS

MARY ANN CLEARY

GEORGE W. COOK III

SUSAN CORBIN

Chief Deputy County Executive

Director

Director of Legislative Affairs

Director

Oakland County Executive Dave Coulter

House Fiscal Agency

Gov. Gretchen Whitmer

Why she should be on your speed dial: In Oakland County government, Hilarie is the person to see as Coulter’s top deputy and strategist. She is charged with managing the daily operations of county government, playing a key role in policy development and decision-making across multiple departments that touch business and HOW TO REACH HER: commerce. Hilarie is a veteran of MichEmail: Chambershi@ igan and Demooakgov.com cratic politics, havTwitter: @HilarieChing previously ambers served as chief of LinkedIn: linkedin.com/ staff to Secretary of in/hilariechambers State Jocelyn Benson and the longtime top aide to now-retired U.S. Rep. Sander Levin. Coulter tapped Chambers to be his No. 2 in August 2019 after the Oakland County Commission appointed the former Ferndale mayor to be county executive following the death of longtime County Executive L. Brooks Patterson. Hilarie is the first woman to serve as chief deputy executive of Oakland County. In her 26 years on Levin’s staff, Hilarie was the congressman’s chief of staff for the last 21 years of his 36 years in office, including Levin’s stint as chairman of the powerful tax code-writing House Ways and Means Committee.

Why she should be on your speed dial: The institutions of the term-limited Michigan House and Senate would likely flounder without the institutional knowledge of each chamber’s respective nonpartisan fiscal agencies. Mary Ann Cleary is herself an institution, a 31-year veteran of the House Fiscal Agency who has been the agenHOW TO REACH HER: cy’s director since 2011. The nonpartiEmail: mcleary@ san House Fiscal house.mi.gov Agency provides analysis of all legislation — good, bad and always indifferent. HFA’s analysts do the number-crunching for the House Appropriations Committee and its 12 subcommittees. Because of the near-constant turnover of legislators due to constitutional term limits, Mary Ann has served countless appropriations committee chairs from both political parties and is regarded in the Capitol as one of the consummate professionals who doesn’t play favorites and sticks to the facts in her professional approach to analyzing the impact of public policy proposals. Also, if you just need to know the history of a particular public policy implemented some 20plus years ago, you call Mary Ann Cleary.

Why he should be on your speed dial: George is Whitmer’s chief lobbyist inside the Capitol, overseeing a legislative affairs team that’s focused on getting the Democratic governor’s spending and policy priorities passed in a Republican-controlled Legislature. He’s a go-to point of contact for any matters related to pending legislation and HOW TO REACH HIM: getting policy proposals from conEmail: CookG4@ cepts to a bill sitting michigan.gov on the governor’s Twitter: @GeorgeWdesk for her signaCookIII ture. George joined LinkedIn: linkedin.com/ the governor’s team in/george-w-cook-iii-m- in October 2020 afp-a-m-m-3309592a ter previously working as senior manager of general affairs at Toyota North America in Saline and director of state government affairs for the Alliance of Automobile Manufacturers.

Michigan Department of Labor & Economic Opportunity

Why she should be on your speed dial: Susan Corbin is a veteran of state government whose department runs the Unemployment Insurance Agency, the Michigan Occupational Safety and Health Administration, the Wage & Hour Division and other functions of state government that intersect with HOW TO REACH HER: employment and workforce developEmail: CorbinS@ ment. During the michigan.gov pandemic, the powTwitter: @SusanCorbin er of MIOSHA to LinkedIn: linkedin.com/ regulate workplace in/susan-corbin-95948a6 safety and set rules aimed at mitigating the spread of COVID-19 played a major role in how businesses interacted with state government. Gov. Gretchen Whitmer appointed Susan acting director of the labor department in October 2020 and made her the permanent director in August. Susan previously was the department’s chief deputy director and a senior adviser to Whitmer. Susan’s career in state government has included stints in the Michigan Department of Education and the former commerce department, where she worked on cultural, educational and trade relations with China.

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“One way I like to see us change the trajectory is doing more studies using geospatial determinants of health — diabetes in this ZIP code, flooding in that ZIP code — to really target problems and their solutions,” Hilliker said. “GDOH is an approach that is not widely used in the sector but can be an extremely helpful resource in prioritizing areas for public health investment. We want

SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 23

TRISHA STEIN

BROM STIBITZ

MARK TOTTEN

KIM TRENT

Chief of Staff

Director and Chief Information Officer

Chief Legal Counsel

Deputy Director for Prosperity

Detroit Mayor Mike Duggan

Michigan Department of Technology, Management & Budget

Gov. Gretchen Whitmer

Michigan Department of Labor and Economic Opportunity

Why she should be on your speed dial: Trisha is a veteran government manager with 25 years of experience in the public sector and political campaigns. As chief of staff to the mayor, Trisha oversees Duggan’s top policy initiatives and coordinates interdepartmental activities. Trisha became Duggan’s top aide in December 2020 after five years as director of administrative operaHOW TO REACH HER: tions at the Detroit Police Department. Email: steint@ Trisha also did a detroitmi.gov stint as the city’s inTwitter: @Trisha_Stein terim planning director in 2014-2015. Her work in government also includes serving as administrator in the Wayne County Prosecutor’s Office when Duggan was the county prosecutor. Trisha also has a background in political organizing. In 1996, she managed the successful millage campaign for the Suburban Mobility Authority for Regional Transportation. In 1998, Trisha managed former Gov. Jennifer Granholm’s successful campaign for attorney general. In 2000, she managed Duggan’s winning campaign for county prosecutor. She was a Crain’s 40 Under 40 honoree in 2006.

Why he should be on your speed dial: Brom is a nuts-and-bolts career public servant who knows the inner workings of state government from 16 years in the executive and legislative branches. He leads a 3,000-employee state agency that is charged with managing the budgeting, procurement, information technology and real esHOW TO REACH HIM: tate for the state’s 47,000-employee Email: StibitzB@ workforce. Brom michigan.gov served in the SnyLinkedIn: linkedin. der administration com/in/brom-stibitzin senior roles at the 45337458 Treasury Department and DTMB, where he became chief deputy director in 2015. In the Whitmer administration, Brom remained the chief deputy director and later added the title of CIO, managing cybersecurity and IT for the state. In October 2020, Whitmer tapped Brom to be director of DTMB. Brom is currently president of the National Association of State Chief Administrators.

Why he should be on your speed dial: The governor’s top attorney touches myriad issues concerning the governance of Michigan. Mark manages a team of attorneys and provides legal review and counsel for all legislation, policy initiatives, appointments, emergency management, litigation, and executive orders and directives. During the height of the coronavirus pandemic, HOW TO REACH HIM: Mark’s team played a key role in drafting Email: TottenM1@ executive orders michigan.gov and public health Twitter: @MarkTotten- dictates that affectMI ed daily commerce and life in the state. LinkedIn: linkedin. Mark has been part com/in/marktottenmi of Whitmer’s inner circle since the Democratic governor took office in January 2019. He previously spent a decade teaching state constitutional, criminal and national security law as a professor at Michigan State University’s College of Law. He did a stint in 2016-2017 as a special assistant prosecuting attorney investigating the Flint water crisis and spent about two years as a volunteer prosecutor in the U.S. Attorney’s office in Grand Rapids. In 2014, he was the Democratic Party’s unsuccessful candidate for attorney general.

Why she should be on your speed dial: Kim is charged with carrying out the Whitmer administration’s economic prosperity initiatives and serving as the labor department’s equity and inclusion officer. She is the lead government staffer for the state’s poverty task force, which entails 14 state departments and a coalition of HOW TO REACH HER: philanthropic and nonprofit organizaEmail: TrentK1@ tions, academic inmichigan.gov stitutions and corTwitter: @KimTrentDe- porations. Kim’s troit public sector career has included six LinkedIn: linkedin. years on the Wayne com/in/kim-trentState University 53a23911 Board of Governors and leadership roles on the staffs of U.S. Sen. Debbie Stabenow, former U.S. Rep. Carolyn Cheeks Kilpatrick and former Gov. Jennifer Granholm. She also has worked on public policy issues in the private sector for the Ann Arbor-based think tank Michigan Future Inc. and the Detroit public affairs and communications firm Compass Strategies.

KATY TRUDEAU

HEIDI WASHINGTON

Deputy Planning & Development Director

Director

Detroit Mayor Mike Duggan

Michigan Department of Corrections

Why she should be on your speed dial: Katy has over 15 years of experience working in the fields of urban planning, affordable housing and community development. She manages a team of planners, urban designers, architects and permitting professionals who play an integral role in every real estate development project in Detroit. Katy HOW TO REACH HER: spent the first half of 2021 as the departEmail: trudeauk@ ment’s interim didetroitmi.gov rector until Duggan LinkedIn: linkedin. hired Houstoncom/in/katy-trudeaubased planner An6a0a823 toine Bryant (see Page 12) to lead the city’s Planning & Development Department. As deputy director, Katy oversees implementation of the city’s Strategic Neighborhood Fund, a partnership with seven corporate donors to invest $35 million in commercial and residential redevelopment in targeted Detroit neighborhoods. Prior to coming to Detroit in 2016, Katy spent eight years in Boston working both in the nonprofit housing sector for a statewide affordable housing organization and in the private sector as a consultant for an architecture and urban design and planning firm.

Why she should be on your speed dial: The Michigan Department of Corrections is not a state agency most people in business would ordinarily think matters to them. But in recent years, the state’s prison system has become a new source of something many businesses are lacking: talent. Heidi has led the state corrections department since 2015. She is HOW TO REACH HER: credited with standEmail: WashingtonM6@ ing up three Vocational Villages withmichigan.gov in state prisons in Twitter: @HeidiWashJackson and Ionia ington and the state’s lone prison for women in LinkedIn: linkedin. com/in/heidi-washing- Ypsilanti that train inmates eligible for ton-355a2210a parole in skilled trades such as construction, masonry, plumbing, welding and truck driving so they are career-ready upon their release back into society. DTE Energy Co. and the International Brotherhood of Electrical Workers have partnered with the MDOC on a tree-trimmer training program the Vocational Village at the Parnall Correctional Facility near Jackson. Heidi is the only remaining member of former Gov. Rick Snyder’s cabinet running a state agency in Gov. Gretchen Whitmer’s administration. A 21-year veteran of the MDOC, Heidi has previously served as warden of Charles E. Egeler Reception and Guidance Center and Duane L. Waters Health Center near Jackson and the former Robert Scott Correctional Facility in Northville Township.

24 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

ASSAD TURFE Chief of Staff | Wayne County Executive Warren Evans

Why he should be on your speed dial: Assad is the gatekeeper to Wayne County Executive Warren Evans and is known as someone who works behind the scenes solving problems and mediating disputes. He’s often HOW TO REACH HIM: the go-to person in county government for other government officials when they’re navigatEmail: Aturfe@waynecounty.com ing an issue. Like his boss, Assad comes from a LinkedIn: linkedin.com/in/assad-i-turfe career in law enforcement. Assad spent 15 years in the Wayne County Sheriff’s Office, rising through the ranks from a deputy to become one of the youngest lieutenants in the history of the sheriff’s office. Assad joined Evans’ team in 2015 as chief assistant to Evans after the former county sheriff was elected county executive in 2014 and trying to keep Wayne County out of bankruptcy court. Evans promoted Assad to chief of staff in June 2018.

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INSIDE: Detroiters at their wits’ end with bus service that has become spottier in the pandemic. PAGE 28 ONLINE: Warriors on Wheels CEO Lisa Franklin says paratransit needs to be fixed ‘yesterday.’ CRAINSDETROIT. COM/CRAINSFORUM

TRANSIT EQUITY

Robert Ward of Westland rides SMART’s Route 250 bus every day down Ford Road to his job as a machine operator at the Kenwal Steel Corp. plant in Dearborn. | PHOTOS BY NIC ANTAYA, SPECIAL TO CRAIN’S DETROIT BUSINESS

HARD STOPS

Metro Detroit’s disjointed transit system makes access to jobs inequitable | BY CHAD LIVENGOOD

obert Ward boards a bus every weekday afternoon at a Meijer Inc. store parking lot in Westland to get to his job as a second-shift machine operator at the Kenwal Steel Corp. plant 15 miles away along the Dearborn-Detroit border. By car, the trek takes a half-hour down Ford Road. By bus, the 56-year-old Westland man who lacks a driver’s license needs two hours to walk from his home to the bus stop, wait for the bus, ride it down Ford Road and then walk the final stretch to the steel plant. That’s if — and this is a big if — the SMART bus shows up on time. If not, Ward is scrambling for more expensive forms of transportation, which he relies on to get home because buses in his corner of Wayne County don’t operate when the steel plant’s second shift ends at midnight. “On Friday, (the bus) broke down,”

“IF THEY DON’T HAVE A DRIVER FOR THAT AFTERNOON SHIFT, THIS BUS IS NOT COMING. AND THAT’S THE PROBLEM — THEY DON’T HAVE ENOUGH DRIVERS.” — Robert Ward

Ward said on a recent Tuesday in late August as SMART’s Route 250 bus rolled east along Ford Road. “If they don’t have a driver for that afternoon shift, this bus is not coming. And that’s the problem — they don’t have enough drivers.” Ward’s alternative is to call an Uber or Lyft car. But even those ride-sharing services have been hampered by driver shortages throughout the pan-

26 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

demic, causing prices to surge. “It used to be about $12, $15, $20 at the most to come out here (to Westland),” Ward said. “Sometimes it’s $60 — and I’m just late to work.” This is what commuting to work in metro Detroit on public transit looks like: You’re either spending an inordinate amount of time waiting for and hopping on multiple buses, or you’re paying a larger share of your day’s wages on transportation than your car-driving counterparts in the workforce. As the state’s political, business, education and philanthropic leaders convene this week for the first Mackinac Policy Conference held during a global pandemic, one of the pillars of the four-day confab at the Grand Hotel on Mackinac Island is equity. While that may be a wide-open topic of discussion, there may be no more pressing equity issue for the

A SMART bus drives along Michigan Avenue in Detroit on Aug. 31, 2021.

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economic mobility of residents in Wayne, Oakland, Macomb and Washtenaw counties than knitting together a better transit system. A public transit system that’s reliable, that has the financial resources to make strategic long-term capital investments. A transit system that takes people to and from jobs that need to be filled for employers large, small, white collar and blue collar. One that creates access to upward economic mobility. The kind of public transit system the leaders of this region have been talking about for a half-century but have failed so many times to achieve because of political squabbles over who gets the tax bill for the billions of dollars of investment needed to make transit work for the people who need it to get to work. How residents in this region get to work is vastly different if you have the means to pay for a vehicle — and afford some of the nation’s highest auto insurance rates. Blacks spend nearly twice as much of their income using transit as whites do, Detroit Future City found in its May report, “The State of Economic Inequity in Detroit.” For every dollar they earn, Black Detroiters spend 23 cents on commuting, while whites spend 12 percent, according to the report. “Though the lower incomes of Detroiters is one factor here, it is not the only factor,” the report said. “For those who commute using public transportation, the cost of time is significant.” Detroiters as a whole spend 24 percent of their incomes getting to work on public transit. The majority of those jobs are in the suburbs, undercutting arguments from suburban property owners that they wouldn’t benefit from expanded transit systems. For those not fortunate enough to own a car or have a driver’s license, getting to work to punch a clock has almost never been harder than during the COVID-19 pandemic. As a matter of daily survival, bus riders like Robert Ward have become numb to the region’s disjointed transit system being plagued with problems that are beyond their control. Bus driver shortages in recent months have been hampering the operations of the region’s two biggest bus agencies, the Detroit Department of Transportation and the Suburban Mobility Authority for Regional Transportation. In pockets of the suburbs like Westland, access to transit is inequitable, in part, because Westland’s neighbor to the west, Canton Township, has never been a community that contributes to the cost of operating SMART. Canton Township, Michigan’s 10th-largest municipality with a population approaching 100,000 residents, has no public transit. Ann Arbor’s bus system has discontinued its express service taking Canton residents to the University of Michigan and downtown Ann Arbor work each day. For all intents and purposes, Canton Township is a transit dead zone, an island that’s off limits for anyone who doesn’t own a vehicle or can’t get a ride to work. The same designation applies to Plymouth, Livonia, Northville and Novi — the entire I-275 corridor has almost no public transit that takes people to work. These suburbs are known in the metro Detroit transit world as “optout” communities and their absence from the SMART system impacts the frequency of bus service in Westland, Wayne and Farmington Hills. But just because they’re not part of

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Gaps in the system Canton Township, Livonia, Northville, Novi, Plymouth and Rochester Hills are among several suburbs in Wayne and Oakland counties that do not contribute financially to the operation of the SMART bus system, leaving gaps in public transit service along major corridors such as Ford Road, Grand River Avenue, Rochester Road and Hall Road. SMART service areas Opt-out communities

NOTE: MACOMB COUNTY HAS A COUNTYWIDE MILLAGE THAT SUPPORTS SMART BUS SERVICE, WHILE WAYNE AND OAKLAND COUNTIES HAVE COMMUNITIES THAT VOTED TO OPT INTO SMART BUS SERVICE. DETROIT IS NOT PART OF SMART BECAUSE IT HAS ITS OWN BUS SYSTEM.

Detroit DDOT service SOURCE: SMART

SMART’s Ford Road route ends in Westland more than two miles short of Canton.

Alex Houssney, 37, of Dearborn rides SMART and DDOT buses for work, shopping and getting to medical appointments due to a disability.

SMART doesn’t mean they don’t have public transit needs — a fact no suburban politician can dispute with a straight face. Canton’s Ford Road corridor is jampacked with a slew of service-sector employers: Swedish furniture big box IKEA, Michigan-based supermarket retailers Meijer and Gordon Food Service, Kroger, Aldi, Fresh Thyme Market, Target, Walmart, Office Max, Home Depot, Emagine Entertainment Inc.’s Canton mega-theater and multiple fast-food joints. Also along the Canton-Westland border, just beyond the last SMART bus stop in Westland, there are several manufacturers within the vicinity: Plastipak Packaging Inc., Alto Manufacturing Inc., Magnum Manufacturing and US Farathane. There are literally thousands of jobs on a four-mile stretch of Ford Road that has zero bus service. For a road named after a man who helped revolutionize economic mobility, Ford Road is inaccessible to those who don’t have an employer like Henry Ford who pays them a high enough wage to be able to afford the metal they’re bending. When employers bemoan extra unemployment benefits as the source of their labor shortages, they discount the real challenge of actually getting to work in this region. “If you’re working at McDonald’s, you’re not going to own an expensive car,” said Alex Houssney, 37, of Dearborn, who rides SMART and DDOT buses everywhere because he can’t drive due to a health condition.

Employers on transit-less corridors like Canton’s Ford Road have no idea how many potential employees they’re not getting because the lack of bus service automatically discourages someone who lives in Detroit, Ypsilanti or Inkster from venturing to their suburb for work. The manager of an assisted living center south of Ford Road told me she currently has a labor shortage and reliable transportation is always a challenge. Sometimes, when an employee’s car won’t start, she desperately sends them an Uber to get to work. Shelby Langenstein, chief people officer at Emagine, said the Royal Oak-based movie theater chain’s theater at 12 Oaks Mall in Novi is “historically one of our harder locations to staff.” But Langenstein is not sure if the chronic staff shortage in Novi is related to the fact that there’s no bus service to the mall. “It could be, but I also think there’s a lot of competition in Novi,” she said. There certainly are more jobs to choose from at 12 Oaks Mall. But getting there on public transit takes dedication for a $12-an-hour job. SMART buses stop at the Farmington Hills-Novi border on 12 Mile Road at Haggerty Road. From there, mall workers must walk or bicycle the last 1.6-mile stretch of busy road, using a patchwork of sidewalks and worn paths in the grass and snow in the wintertime. In this super tight labor market, employees are empowered to work in communities they can access. “I think that’s something people don’t really realize," said Robert Cramer, deputy general manager of SMART. "They say, ‘Well, you know if they really wanted (the job) they’d find a way to get there.' But put yourself in their shoes. Would you really walk in the winter a couple of miles at the end of a bus line to get to work?” In interviews with hiring managers who haven’t ever used public transit to get to work themselves, you sense a disconnect: Most of these employers ask applicants if they have a reliable form of transportation. If they don’t, their application is tossed in the wastebasket. Employers in Canton, Livonia, Novi and the other SMART opt-out communities of Wayne and Oakland counties should stop asking applicants about their ability to get to work. Just like the “ban the box” movement to get rid of the question on job applications about prior criminal convictions, axing the reliable transportation question might actually generate more applicants who aren’t systematically turned away. It also might tell job-providers something they didn’t know: Access to public transit is essential to satisfying their labor needs. In 2019, Detroit’s labor force participation rate — the percentage of adults ages 18-64 who are either employed or unemployed and looking for work — was 67 percent, ranking dead last among the top 100 U.S. cities by population. The regional and national average is 75 percent, according to the Detroit Future City report. There are Detroiters who can and will work. There’s just not an efficient way for many of them to get to the front doors of employers in some of the biggest suburbs. Equity in this region starts with creating access to job opportunities through better public transit. Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 27

'I wanted to cry': Service has Detroiters at wits’ end DDOT problems grow in pandemic BY ANNALISE FRANK

Detroiters are waiting too long for the bus. This is an undeniable fact. The question, though, is how to fix it. And that is a contentious debate in a city where major disparities persist along the lines of race, and where as many as a third of residents lack cars. It's a question riders, activists and officials can't agree on in a pivotal time for the Detroit Department of Transportation bus system. Armed with more than $100 million in federal COVID-19 response funding, helmed by a new leader and lurching forward in a time where racial inequity is an undeniable part of the conversation, DDOT faces an unclear road ahead. In the near term, the bus system is contending with a driver shortage, coupled with lower ridership, a need for more mechanics and other long-standing issues. The system logged ridership of 703,205 in June, a 65 percent drop from the same month in 2019, when more than 2 million people rode. Buses are on time just under three-quarters of the time. The percentage of buses that pull

out to go on their route has also dropped during the pandemic to numbers longtime public transit activist Patty Fedewa calls "crisis levels." As of June, the most recent data available, the afternoon pull-out rate was just over half, at 57 percent. Morning was at 77 percent. Back in June 2019, pull-out rates were in the mid- to high 90s. In a bid to create a schedule where buses show up on time, DDOT plans to lower the frequency of some scheduled routes starting Nov. 15 in a process it calls right-sizing, the system announced in a Sept. 1 public hearing. As proposed, buses would come every 20 to 60 minutes depending on the route. This would lower the 4 Woodward route from its current schedule of every 10-12 minutes to every 20 minutes, for example, and 19 Fort would go from every 40 minutes to 60. There are three routes where services would be entirely suspended for now. "We want people to look and see what time the bus is coming and it actually arrives," said Detroit public transportation executive director Mikel Oglesby, who Mayor Mike Duggan hired in May 2020 from

The share of Detroit buses that pull out on time for their routes has fallen to 57 percent in the afternoons, from the 90s two years ago | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

transit programs in south Florida and Boston. "People are taking the level of what we’re trying to do out of context," he added, responding to criticism of the changes. "We're not trying to generally get rid of service ...

It’s going to be there and you can schedule your life around it, and that’s the goal of what we are doing." Frequent rider DeMario Thompkins of Highland Park said he is skeptical and still sees these changes as limiting bus service.

"There's going to be more people waiting for the bus, which means you're going to eventually not be following COVID protocols (as well)," he told Crain's, referencing bus crowding during the pandemic. The changes to DDOT's schedule are temporary while leaders look to recruit 50 mechanics and around 90 bus drivers, Oglesby said as of early September. He told Crain's there's an expansive marketing and outreach strategy being developed to this end, including things like advertising on YouTube, major radio channels, at block clubs and public school events. It's in the "creative stage," but parts have already begun and it's happening "very fast and furious," he said. It has included hiring a temporary recruiter. DDOT was not able to provide a cost estimate for the effort. Before the pandemic, Detroit had 489 bus drivers. As of Sept. 2, that figure stood around 400. DDOT had 32 resignations and 20 people voluntarily quit, Oglesby told Crain's. But in the last couple of weeks hiring has improved, with 11 more drivers hired and 80 applications working through the system. "We are planning to start restoring service levels in early 2022 as a first step in a complete reimagining

Mike

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28 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

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of public transit in Detroit," the system's Sept. 1 presentation reads.

A shortage of drivers At the virtual hearing, members of the public including Fedewa asked why Detroit doesn't raise salaries, reinstate hazard pay, use bonuses or take other measures to attract drivers. Difficulty hiring has been a problem historically, not just now, she said. Detroit bus operators make a base wage of $15 an hour once out of training. That pay is the result of a union wage hike this year, the first time it has risen since mid-2018, Duggan and the union announced in a news conference back in March. Before that base pay was $12.99 an hour. The maximum they can make is now $21, up from $18.56, and wages will be increased 10 percent over the next four years. "We have had times where DDOT has trained really good drivers who have left us to go to SMART or other organizations because of the pay," Duggan said at the press event. Policies were also altered to combat what the mayor called "high absenteeism rates." "There has been a mass exodus of drivers, whether it be through retirement, people quitting because, quite frankly, while we did get a raise, we're still at the bottom of the totem pole for transit workers in this region," said Glenn Tolbert, vice president of bus driver union ATU Local 26. Regional bus operator SMART says in a recent job listing it's paying $17.22 per hour to start for coach operators after training. And someone looking to become a school bus driver in Troy can begin at $19 per hour with a $1,000 or $2,000 signing bonus through Sept. 30, operator First Student Inc. says in a listing. That bonus is not surprising — the

bus driver shortage is bad. Some Michigan school districts have been rushing to hire or suspending bus service because they can't find enough drivers, even with bonuses and more pay, media outlets including the Detroit Free Press have reported in recent weeks. Unlike mostly part-time school jobs, though, a city transit system can offer full-time work. But Tolbert said there's still safety concerns to consider. "The risks are just too great for what the reward is," he said, between catching COVID-19 or getting involved in violent altercations on the bus. "So we’re losing people, they’re leaving for that reason." Detroit improved sanitation, safety equipment and transit police presence since a bus driver strike in 2020. But concerns remain, according to Tolbert. Local 26's membership has fallen from 550 pre-COVID-19 to around 335 now, he said. As for enticing new DDOT hires with bonuses, Tolbert nor Oglesby see that as feasible. "We worked for a long period of time with the ATU to come to a conclusion on the union negotiations," Oglesby said. "If I bring in an employee today at a large signing bonus, the existing employees will not take that favorably. So these are the things that are running through our mind as we try to get creative. And we are working very hard to be creative, but be fair." Tolbert also said it wouldn't make existing drivers happy to see new employees getting extra cash while they are already "trying to keep this system afloat." "We hire seven, we lose eight, so we’re right back in the same boat we’re in," he said. "... You need to take care of the people that's been here for you." Fedewa argues if paying new hires is tough politically, they could give

bonuses across the board. Some have also argued to bring back hazard pay for bus drivers. Essential Detroit employees had been getting up to $800 extra a month in hazard pay April through June 2020. Regional system SMART is still doling out hazard pay: $7.50 an hour for drivers. But DDOT isn't set up independently like SMART is, Oglesby said. The city of Detroit gave hazard pay to bus drivers, police officers and firefighters until funds ran out, he said, adding that he doesn't have the flexibility to do it on his own.

'It's a necessity' Many have long considered metro Detroit transit to be vastly underfunded and lacking regional coordination. Improvements have been made in recent years, like DDOT working more with regional provider Suburban Mobility Authority for Regional Transportation (SMART) and the launch of express FAST routes in 2017. But disparities persist. Commutes for Detroiters on public transit cost an average of 21 percent of workers' salaries in out-of-pocket costs and travel time, a May report on the state of economic equity by nonprofit Detroit Future City found, with the extra time and costs affecting their potential for employment and upward mobility. Thompkins, 28, walks more than two miles to his job as an assistant and inventory and processing worker at Detroit's COVID-19 testing center at the Joseph Walker Williams Community Center in Virginia Park. He said his bus ride for that distance is around 35 minutes, but that depends on the wait, and he only does it around two times per week because of the lack of reliability. "It's just a slow, cantankerous system," he said. Thompkins estimates that 20 per-

| CITY OF DETROIT VIA FLICKR

As DDOT looks forward, it has help from Washington coming down the line. The bus system's federal stimulus money is coming through the Regional Transit Authority and is separate from the $826 million the Detroit government got from the federal American Rescue Plan Act. DDOT is expecting around $51.5 million, to be used to "make strategic investments in our region’s transit systems that support its economic recovery," according an Aug. 12 ARPA memo from the RTA. The RTA is recommending systems including DDOT use their money to replace financial losses due to low ridership, improve customers' experiences, invest in new capital projects like scheduling software or rider facilities, and support equity in regional transit like "advancing major corridor plans." It says DDOT and others need to ask the public their opinions on how to spend it. They then need to present their final plans to the RTA by February. DDOT is hiring staff to help with public engagement on how to use the federal aid, Oglesby said in a statement. Uses could include Americans with Disabilities Act improvements, corridor expansion, technology and bus shelter replacement. The bus system previously got $84.7 million through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and a supplemental aid package to support pandemic-related efforts like buying PPE, cleaning equipment and vehicle improvements such as germ barriers. That's a lot of money, considering DDOT was approved for a budget of around $135 million for fiscal 2022, which ends July. Oglesby said right now DDOT is aiming to fix its base so people can get where they need to go. That's the

cent of the time he chooses public transit, he catches both buses he needs. Thirty percent of the time he'll catch one and walk the rest of the distance, and 50 percent of the time he won't be able to catch a bus at all. One coach he takes is 4 Woodward, which is among those getting its frequency reduced. Fedewa said she has been waiting for Duggan's administration to transform the city's transit system like it has other parts of the government. But it hasn't happened yet, and these service frequency reductions aren't solving the problem — just making it harder to get places efficiently, she argues. "We need more service. It is very difficult to get around in the city just because the frequencies are so limited," she “WE’VE SEEN SERVICE DECIMATED. WE said. "We’ve seen service decimated. We HAVEN’T SEEN POSITIVE CHANGES. ... haven’t seen positive WE’VE BEEN GIVEN NO REASON WHY changes ... We've been given no reason DDOT ALWAYS SEEMS TO BE LAST ON why DDOT always THE PRIORITY LIST.” seems to be last on — PATTY FEDEWA, TRANSIT ADVOCATE the priority list." Deniqua Robinson of Springwells Village, a rider ad- priority, before an eventual comprevocate for Motor City Freedom Riders hensive look at what is needed to and voter education counselor for take bus service to a new level and 482Forward, described a time in late make it a "premiere system." July when she waited for a northbound Thompkins said he's heartened to Woodward bus downtown for two see the city's new transit head has exhours. She took DDOT's 1 Vernor bus perience in Boston, and says he's to the Rosa Parks Transit Center and hoping Oglesby can replicate any walked to a stop near Avalon Café and success there here. Bakery, where she estimates she wait"This is the perfect time, I feel like, to ed with around 20 people. A man in a try some new things at DDOT," he said. wheelchair nearby fell asleep waiting. But Thompkins compares the "I’m sitting there, 30 minutes goes DDOT system to a person who's beby. I’m like, 'Whoa, O.K., the Wood- ing held down and can't get a breath ward bus is known to be really reli- of fresh air. able,'" Robinson said. "45 minutes, "It's like somebody's sitting on an hour went by. It's getting hot ... I you," he said. "You're trying to get up, wanted to cry." but you're still being crushed." Robinson is a longtime transit user who had her route with her chil- Contact: afrank@crain.com; dren featured in a 2016 New York (313) 446-0416; @annalise_frank SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 29

COMMENTARY

Service cuts sending economic mobility ‘in the wrong direction’ D

er at completed streetsetroit’s Departcapes on roads like Grand ment of TransporRiver, Livernois, Kercheval tation is a very visiand West McNichols, foot ble but easily overlooked traffic is greatest near imaspect of life in the city of portant bus connection Detroit. points, where adults and In the Motor City, the school children alike are public bus has the ability to changing routes and waitreliably connect Detroiters ing to complete their trip. to employment opportuniWhile waiting for their ties, ensure reliable access to educational facilities, Medvis Jackson has bus, riders will often run inside of a store for a snack provide transportation to worked on the or a beverage, quickly health care services, and Crain’s Detroit populate Detroit’s side- Homecoming project enough so that they do not miss the next bus. walks with more pedestri- for the past four Unlike motorists, these ans and potential shop- years and is a former pedestrians and bus riders pers. Challenge Detroit are a captive audience for In a period of economic fellow. A regular the retail businesses in uncertainty and disruption DDOT bus rider, for many of Detroit’s inde- Jackson is a member front of them. While motorists race pendently owned retail of the Motor City past retail spaces with an businesses, an improve- Freedom Riders, a intended destination in ment in our public transit local transit mind, transit riders, cyclists infrastructure and service advocacy group. and pedestrians have the must be part of all future ability to visually explore economic development their surroundings and imstrategies. In the last four years, public streets- mediately make use of the products cape projects in the city of Detroit have and services being marketed in front of done an excellent job of making side- them. More frequent and faster bus trips walks wider and roadways more accommodating of pedestrians, cyclists will allow new and existing bus riders to spend more time walking Detroit’s and those with a walking disability. However, when one looks even clos- various corridors and spend money.

The importance of public transit to economic activity is backed by national data. According to American Public Transportation Association, for every dollar spent on public transit, total economic output gains $2.90 and $1.80 in GDP. In addition to the commercial activity that pedestrians, bus riders and cyclists provide to neighborhood brick and mortar retailers, they also serve as a public safety tool. Increasing sidewalk and roadside activity provides a natural deterrent for individuals seeking to cause property damage or bodily harm. Assuming that most criminal activity is committed by a relatively small percentage of people and with the intention of not being seen, an increase in bus ridership would help Detroiters, by riders’ physical presence on sidewalks, to make criminal activity less attractive. There is strength in numbers. Simultaneously, as Detroit streets and sidewalks become less welcoming of dangerous and criminal behavior, they become more welcoming for positive and productive communal activity. According to 2019 American Community Survey data, 22 percent of recorded Detroit households have no vehicle available. Hence, while 68.4 percent of Detroi-

ters drive alone to work, nearly 30 percent of Detroiters carpool, walk, bike, taxi or ride public transit. About 7.5 percent of Detroiters rely on public mass transit in order to get to work. Imagine the economic and public safety benefits of that percentage growing to 20 percent. To provide some perspective on transit usage, Portland and Las Vegas are two cities between 600,000 and 700,000 residents and 100-200 square miles in land, like Detroit. Las Vegas has just 2.46 percent of residents using public transit to get to work, while Portland has 13.4 percent. Detroit has almost twice the number of employed residents without a vehicle than Las Vegas. However, the reluctance of many Detroiters to ride the bus is justified. In

the last year, the rate of evening DDOT buses that showed up for their route (pullout rate), on-time or delayed, fell from 96.9 percent to 57 percent. For individuals to leave work and show up on time to their bus stop, only for the bus to never appear, is beyond unacceptable. DDOT began the month of September with an announcement of service cuts that will create longer gaps in between bus arrivals on many routes while suspending service to others. Reduced frequency will not encourage more Detroiters to utilize the bus for their transportation needs; they will instead drive, with or without car insurance or a valid license. Others will be less likely to venture outside of their neighborhood for important economic or health opportu-

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1950s. Americans needed an affordable way to get around, and they were able to take advantage of the services offered by our nation's best transit agencies. Detroiters deserve the same, and a failure to offer convenient, reliable, and affordable transportation is certainly going to reinforce the economic stratification of our city for years to come. For once, funding is not the primary issue facing the DDOT in its capacity to provide service. Millions of dollars have been provided to the agency in three rounds of stimulus from the

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COMMENTARY

Bus service cuts threaten Detroit's equitable recovery F ers, but today there are only or Detroit to have an Idrees Mutahr of around 335. This has createquitable economic Detroit is a board ed a crisis in their ability to recovery, the Detroit member of Motor Department of Transpor- City Freedom Riders, operate buses, and they recently announced service tation needs to deliver a transit riders cuts so that schedules remore reliable transit ser- advocacy flect the service they are organization. vice, not service cuts. able to offer. We lauded essential What do these service workers last year, many of whom depend on transit, but it has cuts mean? In some cases, they are been little acknowledged that bus rid- eliminating routes with low ridership ers have been dealing with seriously that were already under consideration unreliable service for over a year. In for redesign or elimination. But in most cases, they are reducing my work with the bus rider organization Motor City Freedom Riders, we service on important routes and cutconstantly hear from riders who have ting night time service. Plainly, this been waiting hours for the bus, are means that riders will have to wait lonconsistently late to night shifts, or are ger for the bus. Research shows that commute time missing opportunities to get to better paying work because of limited transit is the most important factor in predicting someone’s chances of escaping options. The primary problem is a chronic poverty. The last thing we should do is shortage of drivers at DDOT, made make commuting more difficult for worse by the pandemic. Many drivers Detroiters who are trying to get back left the agency or retired as they con- on their feet after an incredibly diffisidered the risks of driving with the cult year. Cutting service is likely to reinforce spread of Covid-19. In 2020, DDOT had about 500 driv- a “K-shaped recovery” where middle

30 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

class Americans enjoy a full economic recovery, but low-income Americans continue to struggle. While infrequent and unreliable transit service is bad on it’s own accord, a number of compounding factors are making car ownership a significantly costlier burden. Gas prices are the highest they have been since 2014, and used cars recently reached their highest prices ever. In addition to a chip shortage interfering with vehicle production, there are fewer used cars on the market as many Americans spent their stimulus dollars paying down delinquent auto loan debt, meaning significantly fewer cars are being repossessed than in recent years. Although Americans overall are paying down auto loan debt, delinquency rates for subprime borrowers continue to grow. In another sign of an unequal recovery, 10.9 percent of subprime borrowers are more than 60 days delinquent on their car bill, a rising figure and the highest rate since 2005.

Idrees Mutahr

In April, NBC News reported that Detroiter Monique Williams lost her job during the pandemic, but remains saddled with the cost of her expensive subprime auto loan. If these growing costs were not enough, Michigan’s insurance reform went into effect last July offering lower prices to people with qualifying health insurance. Anyone who lost their employer-based insurance in the last year is going to see a significant increase in their car insurance. Following the Great Recession, transit ridership reached the highest levels we’ve seen in America since the

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CITY OF DETROIT VIA FLICKR

To fix transit, adopt a local sales tax T

nities. This is a trend in the wrong direction. As Detroit fights to retain existing residents while also attracting new ones, providing world-class public services will be critical to its social, economic and political well-being. In addition to attractive public schools, parks and recreation centers, and library branches, excellent public transportation will make Detroit a more vibrant city in which to work, play and live. The provision of frequent, fast, reliable and equitable public mass transit is an efficient component to our city’s economic rebound. Let’s get more Detroiters and their city’s economy back on the move with an improved public bus service.

federal government, but it is unclear how the agency is using these dollars to address the driver shortage. Transit advocates and the bus driver union agree that DDOT wages need to be increased, at least to achieve parity with the suburban bus agency SMART. We also need the city to react quickly and thoughtfully to come up with a plan to restore, and eventually expand, transit service as quickly as possible. An equitable recovery for all Detroiters depends on it.

tably accessible. he COVID-19 panThis is particularly true demic emphasized for non-white housethe importance of holds, which make up 79 access to health care and percent of transit riders. employment for the funcAdditionally, households tion of our society. without cars face an exSMART and DDOT have treme disadvantage in acplayed an integral role over cessing jobs. the past year and a half by We have excellent providing this access, furleaders in government ther emphasizing the need Eric Morris is a for a regional system that senior vice president and transportation agensupports our basic needs. and Michigan office cies across the region. Each is a strong propoAs local and state lead- leader for HNTB nent of regional transit ers gather in person for the Corp. He is also a and cooperation, fiercely first Mackinac Policy Con- licensed loyal to their constituents. ference since 2019, a re- professional The past two years have newed focus on a holistic engineer and a shifted their focus to the regional transportation lifelong global pandemic, affordnetwork in Southeast Michigander. ing limited discussion on Michigan needs to be top change in this area. of mind. The reality is until our region emA robust transportation network is more than just logistically connecting braces and deploys a robust regional people with places. It represents an public transportation system, it will opportunity to provide better equity continue to fall behind the rest of the in our region — access to opportuni- modern world. However, our failure is not for lack ties to learn, earn a living wage, and of trying. The problem is that our reremain healthy. According to the RTA’s recent Brief- gion lacks the right tools. Aside from the politics and historic ing Book, 58 percent of jobs cannot be reached by public transit, meaning distrust between the urban core and that these opportunities are not equi- suburban ring, the region does not

have the proven, effective mechanisms to pivot to a regional approach, which could include: 1. Regional or local sales taxes, which have been a successful tool to fund transit systems elsewhere, provide a more equitable tool to raise revenues. No major metro area in the country funds significant transportation systems with a property tax. Property value has little to do with the need or benefit from a public transit system. 2. The ability to define our transit region as a subset of the participating counties, which is currently prohibited in the current RTA legislation. Furthermore, the ability to charge different rates across the region based on benefits or opportunities for use would create more flexibility. Additionally, we must maintain the “all-in” and 20-year commitment provisions in the current RTA legislation. SMART is a fantastic service provider but has been hampered for years by “holes” in the region due to opt-outs, causing additional operating and maintenance costs. The requirement to renew funding every four years prevents SMART from deploying major capital invest-

ments, as its debt must be paid back within the four-year renewal period. I give kudos to providers across the region who, regardless of this, have made improvements and collaborated with meager resources to launch the FAST service, the DART card and mobile payment options. Addressing these issues in a meaningful way will not be easy. We need to rise to the occasion. A local sales tax will require a constitutional amendment, and with transportation agencies focused on the issues mentioned, they cannot adequately prepare for the future of bus technology. As the state looks at an equitable, autonomous, and electrified, and zero-emission future, let’s not forget about public transportation as part of this equation. Taking the time to put the right tools in our “regional toolbox” will ultimately help us reach our goal of effective regional transit in the end. After all, the RTA was established in 2012, and here we are nine years later with nary a whisper about regional transit on the ballot in 2022. As leaders gather on Mackinac Island, I urge you to discuss building upon our regional toolbox.

COMMENTARY

Metro Detroit can learn from other regions

NIC ANTAYA/SPECIAL TO CRAIN’S DETROIT BUSINESS

DOT oute , fell

COMMENTARY

a transit system viable t has been 50 years are raised through a losince a report was decal option sales tax rangveloped by TALUS ing from 0.5 percent in (Detroit Regional Transthe Minneapolis/St. Paul portation and Land Use area to 1.25 percent in Study) calling for a comCook County (Chicago). prehensive mass transit Portland uses a payroll system for Southeast tax. Michigan. Some areas combine No action was taken, local sales taxes, license and since then there has plate fees and other been a push about every Dan Dirks was methods to fund transit. ten years to try again to director of DDOT In contrast the only develop a quality region- from 2014 to 2019 option for local transit in al transit system. and general Michigan is the property Nothing has worked. manager of SMART tax, unpopular with the Does Southeast Michi- from 1997 to 2007. general citizenry and the gan not want to invest in He spent 31 years of most difficult to secure transit? Is it because the his career at SMART. successful voter approvDetroit and SMART bus al. systems are viewed as inMichigan ranks alone in depenefficient, and there is not the demand for transit? Does the Detroit dency on this tax to fund public area not receive the support it needs transportation. In fact, of all transit systems nafrom the auto companies and businesses in the region like other areas tionally only 1 percent use the propdo? There is no one simple cause and erty tax method with most of those systems operating in the State of no one simple answer. Think back to 2016, Maybe to start, it is necessary to Michigan. compare how other regions have had would voters have been more likely to support the Regional Transit Auluck while we have not. Even before developing any transit thority (RTA) initiative if the option options for voters in Detroit, Ma- were a 0.5 percent sales tax over a 1.2 comb, Oakland and Wayne Counties mill property tax? Many critics have pointed to the to approve, our region has a big disfailure of the Detroit Department of advantage in raising funds. Michigan’s constitution limits the Transportation and the SMART bus taxing ability of local governments systems in merging as a key factor in and regional transit authorities like voters unwillingness to invest in most other areas in the country have transit. Few metro areas like Southeast available. For an example, in the Chicago Michigan operating transit over a area, Hennepin County (Twin Cities) large multi county area operate with and Cleveland (Cuyahoga County) one transportation provider. Chicago has three (CTA, Pace and local transit funds necessary to keep

Metra) covering the city and ring suburban counties. Atlanta has seven transit agencies. Washington DC has fourteen transit providers. DDOT and SMART are fundamentally different with one providing service in a more densely populated area and the other in a suburban and rural setting. Look no further that the most recent merger/coordination analysis conducted by KPMG back in 2000 when it was concluded that the two systems were actually cooperating well. The analysis suggested that a merged system would likely cost more and not necessarily make the systems operate more efficiently. The study outlines common sense projects like coordinating transfers and fares as suggested projects that the two systems have implemented. Other improvements need to be considered. It makes sense to have one joint customer service department possibly under the jurisdiction of the RTA where customers can make one quick check on the internet or one phone call to determine how to navigate between the two systems. Coordination among the providers of specialized services for older adults and people with disabilities needs to be enhanced, and joint procurement of certain products and services makes sense. A false assumption that some in the region subscribe is that the state of transit today is a direct result of the lack of interest of the automobile companies and regional businesses in the Motor City. That just is not true. I started in transit in the

early 1970s, and my experience is the opposite. SMART’s first milage campaign in 1995 would never have been successful without the financial and active support of the Detroit Regional Chamber of Commerce, Chrysler, Ford and General Motors. There has been a 50-year history of mutual support between transit operators in Metro Detroit and the car companies and local businesses. Back in the 1970s, the first park and ride services operated in the region brought bus riders to the Ford Dearborn campus, Chrysler in Highland Park (and later Auburn Hills) and the General Motors Tech Center in Warren. When Ford and then GM moved to downtown Detroit, changes in SMART service were made to accommodate workers. The hallmark of both DDOT and SMART’s commitment has been and continues to be to get people to work. There have been poor decisions along the way made by all involved, and it has been a struggle for transit to develop a constituency other than their customers most of whom are poor, senior citizens and people with disabilities. For many the bus is their only alternative. If Southeast Michigan wants transit to be an asset and play a greater role in the future development of the region, leaders should look to Portland, Seattle, Charlotte, Dallas and other areas to determine how they were successful when we were not. It can be a realistic blueprint of how to get things done.

SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 31

FINANCE

AI company DeepHow lands $9 million venture capital haul Advertising Section

CLASSIFIEDS Company makes software for training manufacturing workers, looks to move down market To place your listing, contact Suzanne Janik at BY NICK MANES

ket toward the to the hundreds of millions of manuscores of smaller facturing workers around the world ma nu f a c tu re r s and said DeepHow sees an “enorA Detroit-based AI company foseeking a solu- mous opportunity to equip manufaccused on training videos for manufaction to help with turers globally with advanced and turing workers seeks to further scale Advertisingtraining Section their proven technology to help them upits presence around the globe thanks skill and re-skill these workers.” workforce. to a $9 million venture capital haul. The company’s AI technology, “Previously we DeepHow Corp., founded in 2018 had to focus on called “Stephanie,” analyzes video of by former executives from Siemens large customers, skilled workers performing various and with offices in Detroit and Royal Zheng Tothe place your listing, contact Suzanne Janik at 313-446-0455 / sjanik@crain.com tasks, then identifies the because they’re a complex Oak, has closed on Series A round validation of our and steps and creates which brings the company’s total good or, for more information, visit our website at:product, www.crainsdetroit.com/classifi edsa step-by-step also they have deeper pockets and training video for the client to use. fundraising to $13 million. Tom Kelly, executive director and Sam Zheng, co-founder and CEO they can write a bigger check,” Zheng of DeepHow, said the added capital said during an interview last week. CEO of Troy-based manufacturing helps the company shift away from “But now — with more investment — trade group Automation Alley, said the technology is very much in deproviding AI tools purely to larger en- we can serve a bigger market.” In a news release, Zheng pointed mand as much of the workforce ages terprise clients and move down mar-

CLASSIFIEDS

PEOPLE ON THE MOVE

Advertising Section

CONSTRUCTION

NONPROFIT

TECHNOLOGY

Clayco

The Community House

GroupeSTAHL

Clayco welcomes Mark Smith as VP in the Industrial Business Unit. In this role, Mark will help implement Clayco’s design-build delivery method in the automotive and advanced manufacturing industries, specifically for electric vehicle, semiconductors and battery plants. With over 35 years of experience managing large-scale design and construction projects for global clients like Tesla, Intel and Lucid Motors, Mark will also help mentor Clayco’s next generation of design and construction leaders.

The Community House announces the appointment of Ryan Friedrich as Executive Chef. In his new role, Friedrich oversees operations of The Community House Kitchen, including food preparation, menu planning and supervision of cooking and kitchen personnel. Friedrich brings extensive experience to his new role, previously serving as Executive Chef at Market North End and Streetside Seafood in Birmingham. He began his career as a personal chef to LeBron James and his family, preparing daily meals.

Brent Plawecki has been promoted to chief operating officer of GroupeSTAHL. Since joining the team nearly a decade ago, Plawecki has worked to Plawecki develop the company’s business planning disciplines and evaluate strategic business opportunities. In his new role, Plawecki will continue to focus on driving growth and profitability as the company enters its 90th year in business. Ascher Erin Ascher has joined GroupeSTAHL as vice president of human resources. In this role, Ascher will implement innovative practices to provide GroupeSTAHL a competitive advantage through culture, technology and talent. Ascher brings with her 25 years of experience in the industry along with a depth of knowledge in domestic and international human resources policies.

ACRE Project Management Michigan CFO Assosicates Tom Carbone has been promoted from Senior Financial Analyst to Consulting CFO! Tom began with Michigan CFO Associates as an Analyst 9 years ago. Tom is a Certified Public Accountant (CPA) & Certified Management Accountant (CMA) and holds a Bachelor of Science Degree with a double major in Accounting and Management Information Systems from Oakland University. He is best known for simplifying financial reports and making them understandable and actionable for business owners. Congratulations Tom!

ACRE Project Management is pleased to welcome Danny Asante-Appiah as the Director of Project Management for ACRE’s Southfield office. Danny’s responsibilities will be to provide overall program and project management leadership, while maintaining focus on client build-out needs throughout the country. Danny has over 30 years of experience in delivering tenant improvement, project management, and construction advisory professional services.

NEW GIG?

Advertising Section

CLASSIFIEDS

JOB FRONT POSITION AVAILABLE

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PricewaterhouseCoopers LLP, Detroit, MI. Help pvt. companies with a range of bus advisory needs to help improve their operational efficiency. Req. Bach’s deg or foreign equiv in Acct, Bus Admin or rel. + 3 yrs rel work exp.; OR a Master’s deg or foreign equiv in Acct, Bus Admin or rel. + 1 yr rel. work exp. Travel up to 20% req. Apply by mail, referencing Job Code MI3097, Attn: HR SSC/Talent Management, 4040 W. Boy Scout Blvd, Tampa, FL 33607. POSITION AVAILABLE

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FINANCE

toward retirement. tor Foothill Ventures also participat“The average age of313-446-0455 a skilled trades/ sjanik@crain.com ed in the fundraising round. worker in manufacturing is 59 years A valuation for the company was old,” said Kelly. “If you extrapolate not disclosed, but executives said out six years, half the workforce is go- DeepHow has over $1 million in aning to be retiring, so they need a lot of nual recurring revenue and that training to get younger people into number is expected to triple in the these roles. The way you’re going to coming months. do it is through engaging platforms “Sam and his experienced team at FOR SALE that digital natives are comfortable DeepHow have developed breakworking with.” through technology that is already This latest round, which the com- delivering a clear ROI in enterprise pany said was oversubscribed, was manufacturing settings,” Ben Yu, led by Silicon Valley venture firm Si- managing partner at Sierra Ventures, erra Ventures, and had participation said in the release. from Osage Venture Partners out of Philadelphia and San Diego-based Contact: nmanes@crain.com; Qualcomm Ventures. Existing inves- (313) 446-1626; @nickrmanes

       

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32 | CRAIN’S DETROIT BUSINESS | SEPTEMBER 20, 2021

Crains Detroit Business Monday, September 20

MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 17

CRAIN'S LIST | INTELLECTUAL PROPERTY LAW FIRMS Ranked by number of IP lawyers

COMPANY ADDRESS PHONE; WEBSITE

TOP LOCAL EXECUTIVE(S)

LOCAL INTELLECTUAL PROPERTY LAWYERS JUNE 2021/ 2020

TOTAL LOCAL LAWYERS JUNE 2021/ 2020

TOTAL WORLDWIDE LAWYERS JUNE 2021/ 2020

PRACTICE AREAS

BROOKS KUSHMAN PC

Sangeeta Shah, CEO; Frank Angileri, president

56 62

59 70

Patent prosecution, trademarks, intellectual property litigation, post-grant proceedings, open source compliance, cybersecurity, IP due diligence, trade secrets, licensing, copyrights, compliance and technical design consulting

HARNESS, DICKEY & PIERCE PLC

Executive committee

46 50

92 97

Patents, trademarks, copyrights, litigation, transactions/due diligence, anticounterfeiting, foreign rights, appellate litigation

DICKINSON WRIGHT PLLC

Michael Hammer CEO

170 175

482 486

Intellectual property, business technology, copyrights, patents, trademarks and trade secrets litigation

HONIGMAN LLP

David Foltyn chairman and CEO

224 240

320 330

Trademark and copyright, patent and intellectual property litigation practice groups

HOWARD & HOWARD ATTORNEYS PLLC

Mark Davis president and CEO

70 79

152 166

IP litigation, patents, trademarks, copyrights, licensing of IP rights, EDI, technology acquisition or sale, technology law audit, advertising, gaming

YOUNG BASILE HANLON & MACFARLANE PC

Andrew Basile Jr. president

NA 26 1

NA NA

Patent and trademark litigation, prosecution and counseling; technologyrelated transactions, including licensing, acquisitions and divestitures; representation of emerging growth companies; and commercial, employment litigation, and data privacy and security

CARLSON, GASKEY & OLDS PC

Theodore Olds III president and CEO

23 22

Patents, trademarks, copyrights and trade secrets worldwide; intellectual property and commercial litigation

QUINN IP LAW (QUINN LAW GROUP PLLC)

Christopher Quinn president and CEO

20 21

Patent, trademark, copyright, and trade secret procurement and enforcement; IP monetization; brand protection and anti-counterfeiting; domain name arbitration proceedings; licensing, IP due diligence; technology-related agreements and transactions; IP asset and portfolio management; strategic consulting

MILLER, CANFIELD, PADDOCK AND STONE PLC

Megan Norris 2 CEO

128 135

208 212

Patents, trademark, copyright and trade secret prosecution, counseling and litigation

REISING ETHINGTON PC

Jim Stevens president

18 20

Patents, trademarks, copyrights, trade secrets, counseling, opinions, portfolio management, litigation

FISHMAN STEWART PLLC

Michael Stewart Michael Fishman founding partners

18 17

Trademark, copyright, patent, patent prosecution, trade secrets, social media, due diligence, litigation and dispute resolution, IP consulting, transactional and e-commerce services

DARROW MUSTAFA PC

Christopher Darrow president

17 16

Procurement and litigation of intellectual property rights; mediator

BODMAN PLC

Carrie Leahy chair

125 122

139 134

Technology transfer, IP litigation, digital publishing, trademark selection, registration and licensing, economic espionage, entertainment, IP brand protection, patent procurement, enforcement and licensing

WARNER NORCROSS + JUDD LLP

Matthew Casey Linda Paullin-Hebden executive partners

44 44

214 218

Copyright law, intellectual property, IP enforcement and litigation, patent prosecution and portfolio management, technology and IP licensing, purchase and sale, trademark portfolio and brand management

THE DOBRUSIN LAW FIRM PC

Eric Dobrusin president and shareholder

12 10

13 NA

Patent practice, trademark practice, IP strategy and counseling, patent opinions, IP due diligence, technology transfer, government contracts, customs enforcement

BEJIN BIENEMAN PLC

Thomas Bejin, Christopher Francis, Charles Bieneman members

12 10

Patent prosecution, IP litigation, trademarks, licensing, due diligence

DINSMORE & SHOHL LLP

Mark Schneider office managing partner

15 14

663 652

Patent, trademark and copyrights

SECREST, WARDLE, LYNCH, HAMPTON, TRUEX AND MORLEY PC

Bruce Truex, Nathan Edmonds senior partners and comanaging partners

54 46

NA NA

BUTZEL LONG PC

Justin Klimko president and CEO

134 129

144 147

RMCK LAW GROUP PLC

Lukas Baldridge, Brian Hollis, Michael Schaldenbrand, Thomas Jurecko, Jason Benedict, members

5 5

Patent application preparation and prosecution (United States and abroad), trademark application preparation and prosecution, legal opinions, IP due diligence, IP licensing

JAFFE RAITT HEUER & WEISS PC

Jeffrey Weiss CEO

109 109

IP rights, trademark and copyright registration, IP licensing, transactions involving technology and e-commerce, IP litigation, arbitration and appeals, employment and executive contracts, technology transfers

GARAN LUCOW MILLER PC

Timothy Jordan Executive committee chairman

65 67

72 71

Insurance defense and coverage analysis, appellate law, commercial banking and real estate, commercial transportation and logistics, municipal law, ERISA and employee benefits law, intellectual property, no-fault and auto negligence and workers' compensation

CARRIER, BLACKMAN & ASSOCIATES PC

Joseph Carrier president

5 5

NA NA

Patents for mechanical, chemical, electrical, and computer; trademark; copyright; trade secret

WARN PARTNERS PC

Philip Warn president

4 4

Patents, trademarks and copyrights

DIERKER & KAVANAUGH PC

Julia Dierker president

4 3

Patents, trademarks and copyrights

CANTOR COLBURN LLP

Karl Barr, managing partner, Detroit office

4 4

95 100

Practicing in all areas of IP, including patents, trademarks, litigation, opinions, post grant, due diligence, trade secrets, anti-counterfeiting, etc.

1000 Town Center, 22nd Floor 222, Southfield 48075 248-358-4400; BrooksKushman.com 5445 Corporate Drive, Suite 200, Troy 48098 248-641-1600; hdp.com 500 Woodward Ave., Suite 4000, Detroit 48226 313-223-3500; dickinsonwright.com 2290 First National Building, 660 Woodward Ave., Detroit 48226-3506 313-465-7000; honigman.com 450 W. Fourth St., Royal Oak 48067 248-645-1483; howardandhoward.com

3001 W. Big Beaver Road, Suite 624, Troy 48084 248-649-3333; youngbasile.com

400 W. Maple Road, Suite 350, Birmingham 48009 248-988-8360; cgolaw.com 21500 Haggerty Road, Suite 300, Northville 48167 248-380-9300; quinniplaw.com

150 W. Jefferson, Suite 2500, Detroit 48226 313-963-6420; millercanfield.com

755 W. Big Beaver Road, Suite 1850, Troy 48084 248-689-3500; reising.com 800 Tower Drive, Suite 610, Troy 48098 248-594-0600; fishstewip.com 41860 Six Mile Road, Northville 48168 248-864-5959; darrowmustafa.com Sixth Floor at Ford Field, 1901 St. Antoine St., Detroit 48226 313-259-7777; bodmanlaw.com 2715 Woodward Ave. Suite 300, Detroit 48201-3030 313-546-6000; wnj.com 29 W. Lawrence St., Pontiac 48342-2813 248-292-2920; patentco.com 2000 Town Center, Suite 800, Southfield 48075 313-528-4882; b2iplaw.com 900 Wilshire Drive, Suite 300, Troy 48084 248-647-6000; dinsmore.com 2600 Troy Center Drive, P.O. Box 5025, Troy 48007-5025 248-851-9500; secrestwardle.com 150 W. Jefferson Ave., Suite 100, Detroit 48226 313-225-7000; butzel.com 4141 North Atlantic Blvd., Suite 2, Auburn Hills 48326 248-270-2885; rmcklaw.com

27777 Franklin Road, Suite 2500, Southfield 48034-8214 248-351-3000; jaffelaw.com 1155 Brewery Park Blvd., Suite 200, Detroit 48207 313-446-1530; garanlucow.com

43440 W. 10 Mile Road, Novi 48375 248-344-4422; carrier-blackman.com

691 N. Squirrel Road, Suite 140, Auburn Hills 48326 248-364-4300; warnpartners.com 3331 W. Big Beaver Road, Suite 109, Troy 48084 248-649-9900; troypatent.com 201 W. Big Beaver Road, Suite 1101, Troy 48084 248-524-2300; cantorcolburn.com

23 1

Researched by Sonya D. Hill: shill@crain.com | This list is an approximate compilation of intellectual property firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive

available. Unless otherwise noted, information was provided by the firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. NOTES: 1. Crain's estimate. 2. Succeeds Michael McGee as CEO, effective Feb. 26.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data SEPTEMBER 20, 2021 | CRAIN’S DETROIT BUSINESS | 33

FOUNDATIONS

From Page 4

And in the more rural parts of the state where there is a lack of infrastructure, community foundations can take on a convening role and fiduciary oversight for the funds. “We are certainly seeing a role in supporting capacity in nonprofit partners for technical assistance, making sure the right human resources are on the ground and the deployment of resources are in compliance with federal resources,” bringing philanthropic investments alongside federal funds to ensure a holistic approach rather than “one and done investments,” Egner said. “There could be a moment of leverage with philanthropy, particularly around areas philanthropy has been working for years, (like) early childhood.”

Direct links Some foundations are already working directly with municipalities including Grand Rapids, Kent County and Detroit, Caldwell said. Detroit is expected to get $826.7 million in federal stimulus dollars. The Detroit City Council in late June approved the framework proposed by Detroit Mayor Mike Duggan for how those dollars should be spent. The areas that are part of Detroit’s framework all center around an equity approach, said Kresge President and CEO Rip Rapson. They invest in things foundations have supported in Detroit for more than a decade,

Rapson

Nelson

including workforce development, commercial corridor revitalization, housing foreclosure prevention, block clubs and arts and culture. “We have been in conversation with the county, state and mayor’s office about how we can be most helpful to ensure that these priorities actually are realized,” Rapson said. If you’re going to build out the Joe Louis Greenway, for example, you need nonprofits and foundations to make it happen, he said: Investments in arts and culture require an ecology of nonprofits in those areas to make investments stick. The city doesn’t have a universal pre-K program, so it will rely on the Hope Starts Here participants and funders. And foreclosure prevention efforts might need additional capacity to represent people in the courtroom or knock on neighborhood doors. “We are investing in capacity to ensure communities and nonprofits can absorb these dollars and get them out to the community,” Rapson said. The mayor has done his job, Rapson said. “Now we need to do ours.” “That means continuing the kinds

of investments we’ve been making,” he said, while helping fill gaps for technical, operating and program support that’s needed but not covered by stimSherard-Freeman ulus dollars. During this week’s Detroit Homecoming, the annual gathering designed to re-engage Detroit-area “expats” in Detroit’s revitalization, Gene Sperling, coordinator of the American Rescue Plan, will join Rapson and Nicole Sherard-Freeman, group executive for jobs, economy and Detroit at Work for the city of Detroit, on a panel talking about the stimulus funds and city’s plans for them. Sperling will talk about how the dollars aren’t expected to cover fulltime, permanent jobs, Rapson said. “That makes it hard for city hall. They’ve got to make sure they can figure out what they can do to ensure that (stimulus funding) isn’t bloating their workforce and they have to lay them off in a year or two,” he said. “How do you distribute some of those responsibilities across the community, and how can philanthropy help?” “In some ways, this is the trial run for how the communities as a whole work together to divvy up responsibility and authorities and identify who does what the best,” as other types of federal stimulus come to the state, Rapson said.

City connections The W. K. Kellogg Foundation has joined Kresge and other funders in discussions with the mayor’s office regarding disbursement of the ARPA dollars and made recommendations based on the foundation’s priorities, said Faye Alexander Nelson, Kellogg’s director of Michigan programs. Kellogg is funding a project with The BUILD Initiative that takes a coordinated approach statewide — including in Detroit — to provide support and technical assistance to partners and communities to rebuild healthier and more equitable communities post-COVID, Nelson said. “We have gained the greatest traction to date in the early childhood space with the establishment of weekly meetings of key grantee partners who are working together to lift up the needs and desires of their communities to ensure equitable access to resources and to inform decisions that impact the future of the early childhood sector in Michigan,” she said. There will be gaps in what the stimulus dollars can fund, Sherard-Freeman said. “The more we learn about ARPA funding, compliance is at the top of the list.” COVID has helped the city of Detroit uncover cracks in the system and gaps in services that the city delivers to residents in ways that help us build a whole different set of solutions, she said. “We are constantly bumping against what is allowed.”

“OUR PLANS ARE FULLY INTENDED TO CHANGE THE TRAJECTORY OF THE CITY POSITIVELY OVER THE NEXT 10, 20 OR 30 YEARS. WE WANT IT TO BE A WATERSHED MOMENT FOR THE CITY.” — Nicole Sherard-Freeman, group executive for jobs, economy and Detroit at Work for the city of Detroit

As it identifies things ARPA funding won’t fund, “that’s where in the short term, we will need our partners in philanthropy to come alongside us,” she said. Stimulus funding will have to be spent or allocated by 2024, or it goes back to the government, according to the most recent guidelines, Sherard-Freeman said. “But our plans are fully intended to change the trajectory of the city positively over the next 10, 20 or 30 years,” she said. “We want it to be a watershed moment for the city.” Because the city’s horizon for the plan extends well beyond the stimulus funding, “we would fully expect (foundations would) continue to be thought partners with us long after the ARPA funding has ended ... and they may continue to support some of the things under the framework,” Sherard-Freeman said. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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