Loophole leaves illicit marijuana unchecked
Black
market cannabis operators have an edge after landmark ruling
Nearly a year after a landmark Michigan Court of Appeals ruling, Michigan’s illicit marijuana dealers have an economic edge.
In a 3-0 opinion, the court ruled in October 2023 that Shaaln Kejbou, who was growing more than 1,100 marijuana plants without a commercial license — and protecting those plants with a 12-gauge shotgun and dogs — could not face felony charges due to voters passing the 2018 Michigan Regulation and Taxation of Marihuana Act.
Instead, black market dealers like Kejbou could only face a 90day misdemeanor charge.
e ruling, which the court admitted was “unjust” to the state’s legal market, has created a blending of the legal and ille-
“The dirty product that is in ltrating the licensed market is being sold to unwitting consumers.”
gal weed markets in the state with nearly no repercussions for unlicensed large-scale growers to operate.
For law enforcement, the ruling cut the legs o of criminal prosecution and is leading to a boom of illegal growers ooding the market with bad intentions and bad weed that could impact the health and safety of Michiganders.
“ e dirty product that is in ltrating the licensed market is being sold to unwitting consumers,” said First Lieutenant Tom
Kish, commander of the Michigan State Police Marijuana & Tobacco Investigation Section. “I have real concerns about organized crime coming in Michigan more than it already has and the violent crime that will follow. We’re talking multimillion-dollar operations. Once we’re talking about dollar amounts like that, people are going to get shot. It’s an unfortunate consequence of the way our laws are written.”
Dope dealers and weak pricing
e Michigan market is lucrative already. e state is on track to sell more than $3.3 billion in
See MARIJUANA on Page 16
Detroit City FC to break ground on new soccer stadium this spring
By Kirk Pinho
e Detroit City FC soccer club plans to break ground on its new stadium project this spring.
Sean Mann, co-owner and co-founder of the popular men’s and women’s teams that currently play in Hamtramck, made the remarks Sept. 19 in front of Detroit Homecoming attendees at the Detroit City Fieldhouse on East Lafayette in the Islandview neighborhood.
“ is is staying put,” Mann said, referring to the eldhouse. “We have bought 17 acres of land just adjacent to Michigan Central Station. We
are working with the city and looking to break ground next spring and be in there by 2027. Hamtramck’s been great to us. We love Keyworth (Stadium). But it is not to the level where we are right now. We have 7,000 people coming and 180 parking spots and we put a lot of strain on our neighbors. We are trying to solidify our place as Detroit’s soccer team and it’s an amazing opportunity to build a new venue.”
Over the last six months or so, the team has spent more than $15 million assembling
Developer purchases more of the Detroit riverfront
e Torgows have expanded their footprint next to the Joe Louis Arena site.
Last month, an a liate of the family’s Detroit-based Sterling Group development company paid an estimated $5.5 million for more than three acres of west Detroit riverfront land from Detroit developer Peter Cummings, according to Wayne County land re-
cords. GRR Associates LLC, the buyer, is registered to Eli Halpern, Sterling Group’s general counsel.
e site, located at 701 W. Je erson Ave. and 811 W. Jefferson Ave., is sandwiched between the site the Torgows are developing with high-end residential and hotel space and the Riverfront Towers apartment and condominium complex.
Grand executive re ects on casino’s 25 years
Kirk Pinho
Dustin Walsh
A legal loophole cemented in place through a recent Michigan court decision has allowed the state’s black market cannabis operators to go relatively unchecked. | NIC
An af liate of Detroit-based Sterling Group bought this chunk of land next to its new luxury residential, hotel developments on the Detroit riverfront. | COSTAR GROUP INC.
GM, Piston plot hydrogen fuel cell factory in Detroit
The contract manufacturer owned by former Detroit Pistons guard Vinnie Johnson has leased the building and will run the plant
By Kurt Nagl
General Motors Co. and its supplier Piston Automotive are planning a hydrogen fuel cell manufacturing plant at the old State Fairgrounds site in Detroit.
e project, in its beginning stages, would be GM's rst standalone facility for the production of fuel cells — a technology it has embraced as a potential new revenue stream in a variety of applications.
Piston, a contract manufacturer owned by former Detroit Pistons guard Vinnie Johnson, is leasing the entire 292,550-square-foot building developed along Eight Mile Road by Sterling Group and Hillwood.
e automaker and Redford-based supplier nalized an agreement last week, said David Massaron, chief economic development and real estate o cer for GM.
“It’s great to have a new technology in the city we’re from,” Massaron told Crain’s in an interview. “To us it’s a really exciting investment not only to the future of our company but also an investment in the city, and we’re really proud of it.”
Piston will be making the investment and operating the plant. Financial details and terms of the agreement were not disclosed.
Piston declined to comment.
GM said the plant is expected to have around 50 assembly jobs to start, plus a variety of other supporting positions. Plans are still being ironed out for the factory, which is a “few years” away from production, Massaron said, adding: “It takes a while to build these things. It’s got to all come together.”
Operators are seeking a special land use permit from the city to establish the use of “high/medium-impact” auto accessory manufacturing in a “general business” zoning district, according to the city’s Buildings, Safety Engineering, and Environmental Department.
e factory could have up to 300 workers at peak production, Greg Scovitch, vice president of development for Hillwood, said during a meeting last week with the build-
ing department to discuss the project.
During the public comment period, a resident who said she neighbors the facility voiced concerns about noise and potential pollutants.
Danny Samson, chief development o cer for Sterling Group, said he was unaware of any fumes or emissions that would come from the plant, which would house high-tech manufacturing with ovens and light welding.
e building department is awaiting a recommendation from the planning department before making a decision about the special land use permit, which could come in the next month or so, according to Jayda Philson, manager of the building department's zoning division.
GM declined to say where ex-
actly the fuel cells Piston would make would go after assembly and for what speci c uses, but it is likely they would be used in non-automotive applications before going into trucks.
Rather than do the fuel cell manufacturing under its own roof, “the low volume of the project at this stage a orded us the opportunity to use Piston,” GM spokesman Kevin Kelly said.
e Detroit-based automaker has various investments tied to hydrogen, including in Michigan. A GM-Honda joint venture launched production of fuel cell systems earlier this year at a 70,000-squarefoot plant in Brownstown Township, about 20 miles south of Detroit. Unlike the planned Piston plant, the one in Brownstown produces components in addition to fuel cells.
German auto supplier gets $3.5M state grant for Detroit headquarters
By Kurt Nagl
Michigan has awarded German automotive supplier Laepple Automotive U.S. Inc. a $3.5 million grant to help it establish a headquarters and factory in Detroit.
The grant was approved by the Michigan Strategic Fund on Sept. 24 as well as a five-year State Essential Services Assessment (SESA) tax exemption worth $653,760 for a planned $78.9 million eligible investment in the former Stellantis NV Mount El -
liott Tool and Die plant on the city’s east side.
Laepple could invest up to $93.4 million in the project and create up to 173 jobs, according to a Michigan Economic Development Corp. briefing memo.
The company would produce stamped automotive parts at the plant, including hoods, fenders, trunk lids and doors. Its customers in the United States include Stellantis NV, Mercedes-Benz and Tesla Inc.
Laepple can customize parts for OEMs and is seeking addi -
tional customers, according to the MEDC.
Stellantis, formerly named Fiat Chrysler Automobiles, or FCA, sold the Mount Elliott Tool and Die building for $13.5 million in April to METD Detroit Inc., according to property records. That entity is tied to E & E McLaughlin Ltd., an Ontario-based warehouse and leasing firm.
Stellantis wound down operations at the tool and die plant in 2018.
Laepple plans to lease 270,000 square feet of the 428,000-square-
Another big win
e project in Detroit is another major GM business victory for Piston, which is one of the largest Black-owned auto suppliers in the world. Piston Group in August won a long-running lawsuit over its minority certi cation status.
“We’re excited to be using a minority business enterprise for this particular application in the city of Detroit,” Massaron said.
e fuel cell plan also marks another Piston-GM factory on a high-pro le piece of property in Southeast Michigan. e supplier was contracted by GM to operate a “value-added assembly” plant on the former Palace of Auburn Hills site, where it plans to invest $278 million and create 960 jobs.
In that arrangement, GM is leasing the building from Schostak
Brothers & Co., while Piston will operate it and feed parts to nearby Orion Assembly. Massaron said the structure of such deals is “case by case based on the larger business arrangement.”
e new fuel cell factory at the old fairgrounds site would be neighbors with a 3.8 millionsquare-foot Amazon ful llment center that opened last summer, as well as a Target “sortation” warehouse that opened in August. Massaron said the location was attractive from a logistics and economic impact standpoint.
“It’s an important site to the city from a local economy (perspective),” he said. “It’s a great site for us from an egress perspective and ability for Piston to function in terms of bringing trucks in and out in a way that’s not disruptive.”
foot building for its headquarters and manufacturing plant.
“The building itself will be significantly rehabilitated, with improvements and modifications to the structure itself, as well as installation of new, state-of-theart automotive manufacturing equipment within,” the MEDC memo said.
The 292,550-square-foot building pegged for a hydrogen fuel cell plant was part of a large redevelopment of the former State Fairgrounds at Eight Mile Road and Woodward Avenue in Detroit. KURT NAGL/CRAIN’S DETROIT BUSINESS
The former Stellantis NV Mount Elliott Tool and Die plant on Detroit’s east side. | KURT NAGL/ CRAIN’S DETROIT BUSINESS
Tigers’ playoff push adding to already strong year for Detroit
Investments in fan experience, introduction of new gear as well as drive for postseason pay off
Jay Davis
e Detroit Tigers’ recent push for the playo s has ampli ed what was already strong fan interest in the team.
Ilitch Sports and Entertainment President and CEO Ryan Gustafson on Sept. 20 told Crain’s an investment in the fan experi-
ence and the introduction of some new gear have paid o , helping to lead to the Tigers becoming one of the more popular teams for their market.
It doesn’t hurt that the team has been playing well over the last few weeks, too.
As of press time, the Tigers needed a combination of just
Michigan Medicine names its next leader
Dustin Walsh
Michigan Medicine has named its next leader.
Dr. David Miller, urologist and president of University of Michigan Health hospital system, will ascend to the role of CEO of the Ann Arbor-based health system, Michigan Medicine, next year.
Miller, 51, will replace the retiring Dr. Marschall Runge in the role, e ective July 1. Miller will also assume the role of executive vice president for medical a airs at the university.
UM President Santa Ono announced Miller’s promotion at the university’s board of regents meeting Sept. 19.
Miller has been president of the
health system’s clinical enterprise since 2020, having served in various roles at the university and health system since 2008. Before his current position, he was the chief clinical o cer for UM’s University Hospital and the Frankel Cardiovascular Center.
Miller is credited with leading the integration of Lansing-based Sparrow Health, which Michigan Medicine acquired earlier this year, its expansion in Grand Rapids at UM Health-West and ambulatory care expansion with the Ypsilanti Health Center that is expected to open in 2025.
“Dr. Miller is an extraordinary leader, a brilliant researcher and the kind of doctor we all hope for when we need exemplary care,”
three wins of their own or losses by the Minnesota Twins to clinch a playo spot, but regardless of the outcome, the stretch run meant big business for the team.
“ e excitement is palpable,” Gustafson said. “Obviously, the push for the postseason plays a role in that, with where the team was in early August relative to
now. It’s an incredible run the team’s been on and you can feel it in the fanbase.”
e MLB team through Sept. 18 reported a 13% increase in ticket sales year over year, which puts the Tigers in the top four among MLB clubs. Gustafson, who has been
See TIGERS on Page 17
Ono said in a news release. “His robust clinical background, his collaborative and empathic approach, his understanding of the intricacies of patient care, and his strong strategic vision make him the clear choice for this important leadership role. I am con dent he will continue to drive innovation and improvements to ensure Michigan Medicine continues to
RTA to take over QLine operations
By Anna Fifelski
e QLine will be under new management by Sept. 30.
e Regional Transit Authority, which operates the Detroit Air Express downtown airport shuttle, D2A2 bus service between Detroit and Ann Arbor and more, voted Sept. 19 to take over the 3.3-mile streetcar’s operations and management.
e RTA’s assumption of the QLine’s management and operations means that 10 years after its founding, the Woodward Avenue streetcar system will nally get all the perks of public transit.
M-1 Rail, the nonpro t that operates the QLine, rst proposed integrating the QLine in the RTA operations in December 2023. e transition will be nalized by Sept. 30, according to a news release.
“After months of due diligence and negotiations, I am excited to begin the transition of the QLINE to RTA operation,” Dave Massaron, chairman of the RTA board of directors, said in the release. “I commend M-1 Rail for their e orts and thank the project funders for their generous support in launching the QLine, which has become a vital asset for Southeast Michigan, serving millions of riders since its inception in 2017. I look forward to building on their achievements and welcoming even more people aboard the QLine in the future.”
e QLine was founded in 2014 and originally envisioned as a privately funded $100 million project. e cost to build the QLine grew to more than $187.3 million to cover construction, administrative and early operating costs.
M-1 Rail received approximately $150 million in philanthropic contributions led by the Kresge Foundation, Penske Corp. and Rock Family of Companies.
be a beacon of research, teaching, learning and healing far into the future.”
Miller is a native of Midland and earned his medical degree in 1999 from Washington University School of Medicine. He completed residency training in urology at the UM in 2005 and served as
It also received a $10 million loan from the Michigan Strategic Fund board to construct the QLine. But as a nonpro t, M-1 Rail was not eligible for the traditional federal and state transit funding that public transport systems receive and was required to repay the loan in cash. M-1 Rail led a request with the Michigan Strategic Fund board in November to change the repayment terms of the loan.
In March, the MSF approved a proposal for the QLine to generate revenue through advertising opportunities to repay the loan. In March, unnamed third-party organizations estim-
Michigan Medicine is based in Ann Arbor. | UM
Detroit Tigers players celebrate during a game earlier this summer. The Tigers are in line for their rst playoff berth since 2014. DETROITTIGERS
Mortgage fraud cases could trigger tighter rules
TTyler Ross, the former co-CEO of Roco Real Estate, was sentenced
to a year in prison this month for doctoring nancial statements tied to apartment buildings the company was trying to re nance or sell. And a pair of out of state investors who owned the Troy Technology Park have been federally charged with an elaborate scheme related to their 2020 purchase of that property.
ose allegations of fraud — not to mention others around the country — brought by the U.S. Department of Justice have led Fannie Mae and Freddie Mac to start imposing more stringent standards for lenders and brokers, the Wall Street Journal reported last month, citing anonymous sources.
In perhaps the most prominent instance and perhaps the tipping point for the two agencies, some brokers from Meridian Capital Group, a large commercial mortgage rm out of New York City, were allegedly caught falsifying information on things like rent rolls, property operating statements and other documents as a way to secure larger mortgages for commercial borrowers.
e bad behavior by some lenders and borrowers — plus a commercial real estate slowdown — has prompted the two agencies to start rolling out tighter requirements.
e changes are having ripple e ects for commercial borrowers in metro Detroit, said Dennis Bernard, founder of South eld-based Bernard Financial Group.
In addition to Meridian e ectively being blacklisted by those two agencies, that has also made it more di cult for others seeking Fannie and Freddie loans on commercial properties, Bernard said. For instance, what once was perhaps a 45- to 60-day process to get a loan quote, now takes 90 days —
not an insubstantial delay.
“ is made it more di cult for other people coming to the agencies,” Bernard said. “ is kind of scrutinization will last for a couple years, and then if the system seems to be healthy, it will slowly mitigate itself.”
Brian Connolly, a land use attorney who is now an assistant professor of business law in the Stephen M. Ross School of Business at the University of Michigan, also said the changes are likely to cause loans to take more time to complete. Any additional costs the added due diligence causes may in “some kind of really long, downstream way” get passed on to residential, o ce and commercial tenants, but those are likely to be “de minimis,” Connolly said.
and are under the oversight of the Federal Housing Finance Agency — own or guarantee about 40% of that, or nearly $900 billion, according to the WSJ. “ e reason Fannie and Freddie are concerned about this is they are the ones that, once a lender loans on a project, they are the ones that are probably buying and securitizing that debt,” Connolly said. “Fannie and Freddie, who are government backed, are on the hook when a lender loans on a project where the borrower has falsi ed records.”
e judge in Ross’ case, Jonathan J.C. Grey, recommended on Sept. 20 that he serve his sentence at FCI Lompoc, about 300 miles south of Ross’ current residence in San Francisco. He is scheduled to report for his sentence Jan. 28.
Emails were sent to Fannie and Freddie seeking comment on Sept. 23.
e Journal reported that among the changes Fannie and Freddie are making include requiring lenders on multifamily properties like apartment complexes “independently verifynancial information related to borrowers,” including having sufcient funds and the source of those, plus completing their own due diligence on properties.
e WSJ reported that lenders can currently “take a more handso approach” on things like that. at in turn allows less bureaucracy in the loan process and allows them to shirk things like audits, which can be costly, per the Journal.
ere is about $2.2 trillion in multifamily mortgage debt in the country, and Fannie and Freddie — which buy and securitize loans
In a statement, Roco Real Estate said this month that Ross’ “conduct, more than four years ago, does not re ect our company’s core values and commitment to operating with integrity.”
“He no longer has any responsibilities at Roco and his ownership interest in the company is being divested,” the statement said. “Mr. Ross never had responsibility for investor marketing or reporting. Accordingly, all nancial statements to Roco’s investors have been true and accurate.” e company also said it has never missed a loan payment.
And separately, the former owners of the Troy Technology Park, Boruch “Barry” Drillman and Aron Puretz have pleaded guilty to fraud involving the purchase of that 426,000-square-foot, ve-building complex east of I-75 and north of 14 Mile Road. Neither man has yet been sentenced.
Kirk Pinho
Stellantis puts ad agencies under review as sales slump
By E.J. Schultz, Ad Age
Stellantis is conducting creative agency reviews for its Dodge, Ram, Chrysler, Alfa Romeo and Fiat brands in the U.S., according to people familiar with the matter.
e reviews, which are said to be driven by the automaker’s procurement department, come as Stellantis implements steep cost-cutting programs while dealing with slumping sales and market share losses.
e incumbent agencies on the brands are Omnicom’s GSD&M (which mainly handles Dodge), based in Austin, Texas, and Stagwell’s Doner, based in South eld. Jeep, whose creative is led by Highdive, is not involved, according to people familiar with the matter.
“As a matter of standard procedure, we put our agencies through reviews when timing dictates,” Stellantis U.S. Chief Marketing O cer Raj Register said in a statement to Ad Age. “As a general rule, we also are not beholden to the ‘one agency ts all’ model, instead choosing to give interested agencies the opportunity to bid on creative opportunities across our U.S. brands.”
Doner declined to comment, and GSD&M could not immediately be reached for comment.
Register joined Stellantis in early June. She had served as CMO at Sysco Corp. and before that had a long career at Ford. Register replaced Marissa Hunter, who has left the company. Register arrived as Stellantis restructured its marketing department to combine marketing, social and digital media, website, analytics and paid media operations, “allowing for centralized decision-making in support of a results-driven culture,” according to a June 3 statement.
Ad spending for the ve brands in
review pales in comparison to Jeep, which got $170 million in U.S. measured media support for the year’s rst two quarters and $271 million for all of 2023, according to Vivvix, including paid social data from Pathmatics. Ram is the next-closest, getting $124 million in the rst half of 2024, followed by Dodge ($32 million), Chrysler ($6 million), Alfa Romeo ($3 million) and Fiat ($2 million).
South eld marketing rm to be acquired by holding company Publicis Groupe
By Brian Bonilla, Ad Age
Publicis Groupe is set to acquire Mars United Commerce, the world’s largest independent commerce marketing company, the holding company announced. Publicis declined to share the terms of the deal.
Mars United Commerce’s clients include Mars Wrigley, Samsung and Walmart, whose U.S. media is handled by Publicis. Formerly known as e Mars Agency, Mars United Commerce rebranded in May to help promote its global reach and capabilities. e agency was founded in 1973 and has grown to more than 1,000 employees in 15 global o ces.
e Mars United Commerce brand will remain unchanged, a Publicis spokeswoman con rmed.
e move marks Publicis’ second major acquisition this year. It agreed to acquire In uential, then
the world’s largest in uencer agency by revenue, for an undisclosed amount in July.
Acquiring Mars United will allow Publicis to integrate Mars’ commerce data and o erings with its media and performance capabilities, as well as its Epsilon data, to help clients better understand a consumer’s full path to purchase.
Publicis believes both acquisitions will allow it to better serve its clients with “the new media channels that work hardest for their business: connected TV, commerce and creators,” Publicis CEO Arthur Sadoun said in a statement.
Building out commerce and retail media capabilities has become critical for holding companies. Last year, Omnicom struck its largest deal ever when it agreed to acquire digital commerce giant Flywheel Digital for $835 million. Publicis has also been building its expertise in this area over the years with acquisi-
Stellantis has experienced steep sales declines across most of its brands, with total U.S. sales plummeting 21% in the second quarter and 16% in the rst half of the year. e slump comes amid a wave of high-ranking executive departures. e company has also faced strong criticism from United Auto Workers leadership upset over job cuts, as well as from dealers that are complaining that short-term deci-
sion-making in 2023 was “reckless” and has put them in a bad spot this year, Automotive News recently reported.
Stellantis has long been known for shifting assignments to various agencies on its roster, an approach favored by Stellantis Global Chief Marketing O cer Olivier Francois. Doner has over the years bene ted from a range of assignments. It was among the shops that picked up
more work for Ram after Stellantis in January cut ties with TRG, formerly known as e Richards Group, which had been with the automaker for 15 years.
GSD&M’S Dodge work has recently included a campaign that debuted earlier this year for the plugin hybrid Dodge Hornet R/T.
E.J. Schultz writes for Crain’s sister publication Ad Age.
tions of CitrusAd and Pro tero.
“Joining Publicis Groupe will help Mars realize our vision of being the preeminent global commerce company faster and more completely,” Mars United Commerce Global CEO Rob Rivenburgh said in a statement. Rivenburgh will remain in his role.
It’s no surprise holding companies are pushing to better understand the consumer purchase journey, given that global e-commerce sales are projected to reach $6.86 trillion in 2025, according to a recent Shopify report.
Retail media networks, or ad platforms owned by retailers, are also
popping up more as data becomes more important to advertisers. However, the increase in these networks has also increased the level of scrutiny around the role they play in large media agency reviews.
Brian Bonilla writes for Crain’s sister publication Ad Age.
GSD&M was behind a recent campaign for the Dodge Hornet. DODGE
Sixteen-year-old Charisma Holly of Detroit helped kick o Detroit Homecoming with a performance of the following poem. e theme of this year’s Homecoming was “Detroit 2050,” and we thought the poem painted such a vivid picture of Detroit’s history and where it is — or could be — heading, we wanted to share it with a wider audience here. Holly is a spoken-word artist and a senior at the Detroit Edison Public School Academy, where she participates in InsideOut Literary Arts Citywide Poets after-school program. — Crain’s Detroit Business
If I Wake Up In Detroit 25 Years In e Future,
ere better still be Better Made chips stacked on shelves o cially making them 120 years old, sold next to two liter bottles of Faygo; liquid gold in the summer months.
e radio plays Marvin Gaye Motown Sound alongside J Dilla Beats as I tell my future kids, “Y’all don’t know nothing about these.”
I imagine taking them to see the Riverwalk I write poems about, and Belle Isle and Urban Soul; spend the day in the classic Cass Corridor dubbed Midtown as I tell nostalgic stories for the city we are in right now.
Right now, I am sixteen and whenever someone asks me what being a Detroiter means, I spell out Detroit backwards From T to D with the last T in Detroit being for technology;
Where Michigan Central Newlab expands and Black Tech Saturdays puts laptops in the hands of tomorrow’s innovators.
I for investment in the future of our city. In my head, we plant owers in front of the King homes where my cousins play tag in the grass, and there are no longer shards of glass stuck in shoes after a game of football;
where there are desks in every classroom of every building labeled public school, bringing books to each library, and buying back the property to repurpose previous vacancies.
e O in Detroit is for ongoing growth where wishes for economic prosperity have the opportunity to become reality.
R is for revitalization, real estate and real education; the key to bringing the city up to its potential.
Imagine those empty eyes of boarded up abandoned houses bought and given new life new lights, porches, roofs; roots planted right here where generational wealth is built up year by year.
T stands for transformation; the manifestations of all our wildest dreams.
Creations that seem hypothetical, but can be achieved.
What if we had electric car charging streets all around the city to reduce the gray clouds of pollution by promoting the expansion of electric cars? What if we planted gardens in every community to feed those in need and clean the smog like cigarette smoke from factories so the kids with asthma in my classes have higher quality air to breathe?
What if we had creative spaces, murals, and open mics on the east side, west side, anyplace where art and culture can collide?
I can see a Detroit where my aunt parks at Walmart and her car does not get broken into, the Lions really do win the Super Bowl, and we nally x roads.
As impossible as it all sounds, I know if we can hope, then we are capable of anything.
e E means elevated enterprise; small owned businesses growing right in front of your eyes;
neon signs, downtown stores, City Bird, AutoBike; highschoolers already sizing up supply chains,
crochet, bake, making a custom pillow case
because the side hustlers of today are the entrepreneurs of the future as long as we continue to believe.
Believe in the progress we see and the visions that we will someday make into reality because in the Detroit city,
e D has always been for dreams.
Report looks at making Detroit a middle-class city
A new report calls for a broad coalition of stakeholders — government, business, schools and residents — to work toward making Detroit a middle-class city again.
The report, titled “Making The Middle Class: Leveraging Detroit’s Neighborhoods to Build a Middle-Class City,” was released Sept. 25 by nonprofit think tank Detroit Future City. The report looks at the numerous facets — population change, income and education, housing and neighborhood quality — that go into increasing the city’s share of middle-income residents.
Doing so will require considerable work, DFC executives acknowledge. At present, more than 70% of Detroit’s population falls below the threshold of earning a middle-class wage, de ned by DFC as $62,000-$155,000 annually.
Increasing the number of middle-income earners, however, is critical for the future of the city and region, according to Detroit Future City CEO Anika Goss.
“It’s time to really get serious about this,” Goss told Crain’s. “Are we going to continue to be a city that perpetuates poverty in our neighborhoods, or are we a city where people can enter the middle class from wherever you are, whether you’re moving here or you’re currently living here?”
The report calls for a multipronged approach that involves business and civic leaders as well as those in the education community to “fully commit” to making Detroit a middle-class city by investing in neighborhoods as well as a variety of ame -
nities and infrastructure.
Given the work needed, Goss said an all-hands-on-deck approach is needed to meet the challenge, and local business leaders play a critical role.
Detroit, she said, has long been a center for lower-wage jobs and workers. Now, the city is seeing an increase in jobs requiring college education.
“And so for private industry to really think about how Detroiters participate in those middle-wage job opportunities, that could really be one of the key drivers,” Goss said.
How to do it
e DFC report highlights the myriad challenges and opportunities should civic leaders heed the calls outlined. Perhaps foremost
are ongoing e orts around increasing Detroit’s population.
Earlier this year, the city announced the rst rise in population since 1950, reporting 0.3% population growth in 2023, bringing the city’s o cial population count to 633,218 residents.
While acknowledging the benets of even small population growth, there are caveats to that, noted Edward Lynch, the report’s author and DFC’s director of research. Speci cally, Black population in Detroit — a roughly three-quarters Black city — has been on the decline for years, while the number of white and Hispanic residents have been on the rise.
“So while we’ve had this positive story that’s starting to emerge around population within the city, we’re still 100,000 residents
fewer than we were 10 years ago,” Lynch said.
Meanwhile, much of the city’s Black population has migrated to other parts of the metro area. As of 2020, the Black population living in the city versus living in surrounding suburbs was nearly equal, according to the report, citing U.S. Census data. Inner-ring suburbs such as South eld, Eastpointe and Harper Woods are now majority Black.
While the report from Detroit Future City looks at Detroit, the state of Michigan as a whole is also dealing with a stagnant population.
e report also looks at numerous other factors that need addressing should o cials strive to make Detroit a middle-class city again. Income, education and housing are chief among those,
according to the DFC report.
Income and housing
Education and income are “intrinsically linked, and core contributors to nancial stability and security for Detroiters,” the report notes. Incomes in the city have been stagnant for Black and Latino populations, while the city’s white populations have seen gains, “possibly re ective of the white population moving into the city and the growing share of white residents with a bachelor’s degree or higher,” according to a news release associated with the report.
“On average, incomes are higher in the suburbs compared to Detroit across all ethnic groups,” the release states, noting that U.S. Census data shows that the average household income in the metro region, excluding Detroit, is more than double the city’s average income of about $52,000.
“Household income is an important component of people’s ability to enter the middle class and in the creation of middle-class neighborhoods,” the report says.
“Having su cient income to enter the middle class provides people with a level of nancial stability and the opportunity to build wealth through the purchase of a home or saving for retirement.”
Detroit neighborhoods seeing increases in income include Midtown, Downtown, Woodbridge and Je erson Chalmers on the far lower east side, according to the report. Meanwhile, several other neighborhoods on the east and west sides of the city are seeing increasing average household
Nick Manes
The Woodbridge neighborhood is near Midtown and Wayne State University. | NICK MANES
The Jefferson Chalmers area on Detroit’s far lower east side is among neighborhoods seeing increases in residents’ income. | NICK MANES
Driver convicted in crash that killed Vivian Carmody, injured Dan Carmody
By Kirk Pinho
A Romulus man has been found guilty of causing an August 2023 crash in Detroit that killed Vivian Carmody, a longtime local economic development and communications consultant, and injured her husband, Dan Carmody, CEO of the Eastern Market Partnership.
Jacob Mraulak was convicted by a jury in Wayne County Circuit Court on Sept. 23 of operating a vehicle under the in uence causing death, reckless driving causing death, operating under the in uence causing serious injury, and reckless driving causing serious impairment of a body function, according to online court records.
e rst two felonies carry a maximum penalty of 15 years in prison, while the latter two carry a maximum penalty of ve.
Mraulak is scheduled to appear back in court for sentencing 10:30 a.m. Oct. 18.
A message was left Sept. 24 with Mraulak’s attorney, Craig Tank. A
spokesperson for Wayne County Prosecutor Kym Worthy, whose assistant prosecuting attorney Jonathon Hitz prosecuted the case, said Worthy’s o ce was pleased with the jury’s verdict. Carmody declined comment.
Crain’s reported last year that the driver later identi ed as Mraulak struck the Carmodys on Aug. 18, 2023, as they were walking to dinner near East Lafayette and St. Aubin near the Dequindre Cut. Vivian Carmody died the following day, Aug. 19, while Dan Carmody required surgery to repair his injuries.
Police Chief James White said at the time that the driver was under in uence of drugs and alcohol and potentially overdosed while driving a white van that hit the pair. e driver reportedly crossed a median and hit the Carmodys as they were on the sidewalk, and then hit a tree.
Vivian Carmody, 68, spent more than 20 years serving in various downtown and economic development roles.
‘All
In’ initiative lawsuit against UWM and Ishbia is dismissed
By Nick Manes
A federal judge in Florida has dismissed a lawsuit alleging Pontiac-based United Wholesale Mortgage holds a monopoly power within the wholesale mortgage lending space.
U.S. District Judge Wendy Berger with the U.S. District Court in Jacksonville, Fla., this month agreed with a previous judge that the case brought against UWM and its CEO, Mat Ishbia, by St. Augustine, Fla.based mortgage brokerage e O’Kavage Group should be dismissed.
e case is related to the so-called “All In” ultimatum issued by Ishbia in March 2021 that required brokers to commit to cease doing business with Detroit-based Rocket Mortgage if they wished to continue sending loans to UWM.
In the ling ordering the case dismissed, Berger wrote that the court was “unpersuaded that (O’Kavage Group) has plausibly alleged anything more than knowledge by UWM brokers that other brokers intended to assent to the ultimatum and parallel conduct without any
Plastics manufacturer moving headquarters from NYC to metro Detroit
By Kurt Nagl
Plastics manufacturer Asahi Kasei America Inc. plans to close its New York City o ce and consolidate its headquarters to its Novi location.
e company, which supplies automotive, health care and other industries, will move all headquarters administrative operations to its 14,400-square-foot o ce o Grand River Avenue effective Nov. 1, according to a Sept. 25 news release.
e move will allow it to “streamline processes” and underscores its “commitment to op-
‘plus’ factor, such as abnormal inter rm communications or actions against self-interest.”
An attorney for O’Kavage Group did not respond to a message seeking comment Sept. 24, or whether the company planned to appeal the dismissal.
For their part, o cials at UWM celebrated the dismissal.
“UWM’s victory in this frivolous lawsuit rea rms that the claims against us were baseless from the start,” company spokesperson Nicole Roberts wrote in an email to Crain’s. “As we’ve stated from the beginning, the All In initiative benets both the broker channel and consumers, which is evident in the increase in broker market share over the last few years. e accusations suggesting that All In was harmful have always been false, and this court ruling further underscores that reality.”
e order by Berger to have the case dismissed comes more than seven months after another federal judge issued a nearly 50-page opinion stating that the allegations brought by e O’Kavage Group should be dismissed.
erational excellence in North America.”
Asahi Kasei was founded in New York in 1959 and opened its Novi o ce 60 years later, undergoing an expansion last year.
“Transitioning our headquarters to Novi represents more than an address change,” Takuma Miura, president of Asahi Kasei America, said in the release. “ is move will empower us for future growth, as we’ll be better situated in the center of the country to reach our growing client base in the Material, Homes, and Health Care sectors nationwide.”
It is not clear if the headquarters
move comes with job creation in Novi. Crain’s inquired with the company for more information.
Asahi Kasei, a subsidiary of an eponymous Japanese conglomerate, has more than 49,000 employees globally. In addition to its Novi o ce, the company operates Fowlerville-based Asahi Kasei Plastics North America, which ranks as one of North America’s largest plastic compounders.
“Our headquarters in Novi will be a place for creativity, a launchpad for groundbreaking ideas, and a single home where we will continue to focus on delivering for our partners,” Miura said.
Asahi Kasei opened its Novi of ce in 2019. | ASAHI KASEI
UWM Chairman and CEO Mat Ishbia speaks at a company rally in Pontiac in 2023. | UWM VIA TWITTER
Huntington Place wanted a convention hotel so badly that it invested in one
e Detroit Regional Convention Facility Authority earlier this year took a large equity position in convention-style hotel being built on the former Joe Louis Arena site along the Detroit River.
e $150 million investment, good for a 49% ownership stake coupled with Detroit-based developer Sterling Group’s 51% through an a liate, was approved at the authority board’s Feb. 15 meeting but has not previously been reported.
e authority expects to recoup that investment four years after the hotel opens — slated for April 2027 by the time the city plays host to the 2027 NCAA Men’s Final Four basketball tournament — and subsequently generate some $6 million to $10 million each year after.
at revenue stream would help o set any Huntington Place convention center operating de cits, which can uctuate from year to year, said Claude Molinari, chair of the authority board and president and CEO of the Detroit Metro Convention and Visitors Bureau. Currently the anticipated de cit is about $8 million for the scal year that ends Sept. 30, Molinari said. In scal 2025, the authority anticipates a small pro t. “What I’d like to do is, when we get our $150 million back from this venture that we invested in, potentially with another developer or with the Sterling Group again, to build another hotel,” Molinari said. “We pushed for the equity position with the Sterling Group, but moving forward we think that’s a good framework to entice
other developers.” is summer, the authority issued federally taxable bonds totaling $155.72 million to re nance a JPMorgan Chase & Co. lien note that was used to fund the equity investment, according to New York City-based Fitch Ratings Inc. It was part of three tranches of bonds totaling about $408.7 million. Another bond issuance, which is tax-exempt and totaling $142.975 million, is being used to pay o another JPMorgan Chase loan that was used “to nance a portion of the cost of road access and parking improvements on Second Street adjacent to the convention facility,” Fitch says. is comes after state lawmakers in late 2022 during a lame duck session fast-tracked legislation allowing the authority to enter into public-private partnerships, lift a spending cap, authorize new borrowing and expand Huntington Place’s de nition to include nearby roads — a precursor to the extension of Second Street that’s currently underway, expected to be completed in the summer 2026.
“We were honored that the DRCFA sought to partner on this impactful project that will serve as a powerful catalyst to attract more and larger conventions and events to the city of Detroit,” said Danny Samson, chief development ocer for Sterling Group, in a statement. “We look forward to the grand opening in 2027.”
e Detroit Regional Convention Facility Authority oversees the operations of Huntington Place, the 16th largest convention facility in the country clocking in at about 723,000 square feet of exhibition space and
51,500 square feet of ballroom space. e authority is overseen by a ve-member board, with one member each appointed by the governor; mayor of Detroit; and executives of Wayne, Oakland and Macomb counties. In addition to revenue from events and other functions, the authority receives funding from the state’s Convention Facility Development Fund. e fund distributes revenue to the authority as well as counties from things like taxes on hotel rooms and liquor.
Ann Arbor software company secures
$37M
as it sells majority stake to California rm
Anna Fifelski
A Californiaprivate equity rm has purchased a controlling stake in Ann Arbor-based software company Camp re Interactive Inc., the company announced Sept. 24. In exchange, Camp re received a $37 million investment.
Camp re was founded in Ann Arbor in 2000 by Pradeep Seneviratne and Sarvajit Sinha with a focus on product lifecycle management, but has since grown into a software as a service (SaaS) provider of core business applications for the manufacturing industry.
e San Mateo, Calif.-based Invictus Growth Partners made a $37 million majority investment in
Camp re, marking the rm’s rst investment in a Michigan-based company. Invictus declined to comment on the percentage of its ownership stake in Camp re. Existing investors will retain a minority stake in the company alongside the company’s founders.
“ is investment marks a pivotal moment for Camp re, enabling us to better serve our base of automotive suppliers with expanded product and support capabilities while growing our business within supply chains of other manufacturing sectors,” said Dan Meyer, CEO of Camp re, in the release.
“We are excited to partner with Invictus, whose expertise in scaling enterprise software businesses and machine learning, makes
them the ideal partner for us.”
e investment will back the current Camp re team’s vision, including supporting the software company’s continued growth, accelerate product innovation, and expand its market reach, William Nettles, co-founder and managing partner of Invictus, told Crain’s.
e investment will allow Camp re to leverage Invictus’ expertise in machine-learning, articial intelligence and analytics, driving e ciency and further enhancing product o erings, according to a news release.
Invictus sources investment deals through DIANE, its machine learning platform that allows it to nd companies across cybersecu-
Sterling Group is run by businessman Gary Torgow’s children, and is also behind the new JW Marriott’s companion tower at the Joe Louis Arena site, a 25-story market-rate apartment building called Residences at Water Square which opened to residents early this year. In August, an a liate of Sterling Group recently purchased three acres additional riverfront property for $5.5 million.
As part of the equity agreement with Sterling Group, the Detroit convention authority agreed to re-
serve some 1,000 or so parking spaces in the 3,000-space Joe Louis Arena garage for the company for a 10-year period free of charge for hotel guests and residents at the Residences at Water Square, Molinari said. After those 10 years, Sterling Group begins paying an undisclosed market rate for those spots, Molinari said.
e hotel development is being nanced by Union Labor Life Insurance Co. e Washington,
See HUNTINGTON on Page 14
rity, ntech and enterprise cloud software, Nettles said.
“We use our machine learning platform, which helps us nd companies across our three verticals, and after we make the investments in the companies, we help our portfolio companies implement their own machine learning
use cases with their own data to make them more e cient,” Nettles said.
Over $200 million in revenue is managed through Camp re, across over 10,000 active users. e company’s clients are U.S.-based, large enterprises in the automotive and manufacturing space.
Camp re Interactive Inc.’s headquarters at 2211 Old Earhart Road in Ann Arbor COSTAR
An elevator shaft rises out of the ground as part of the JW Marriott hotel high-rise construction on the former Joe Louis Arena site. KIRK PINHO
Kirk Pinho
Detroit startup's tech to make 150 D.C.-area buildings 'smart'
By Anna Fifelski
KODE Labs, a Detroit-based autonomous smart building startup, has been awarded a $14.35 million contract by the U.S. General Services Administration, the company announced on Sept. 26.
e contract, in collaboration with London-headquartered business management consultant Ernst & Young, involves deploying KODE Labs’ advanced centralized data platform, KODE OS, across 150 GSA-managed buildings in the National Capital Region. e National Capital Region includes the District of Columbia, and the counties of Montgomery and Prince George's in Maryland; and Arlington, Fairfax, Loudoun and Prince William counties in Virginia.
" is is more than just a project or a job for us," KODE Labs co-founder Etrit Demaj told Crain's. " ere's a lot of pride in working with the GSA ... We're also really looking forward to working really hard to make sure that the GSA becomes and continues to stay a smart building leader globally."
Deployment of the software will begin within the next month, Etrit Demaj said.
KODE Labs was founded in 2017 by brothers Edi and Etrit Demaj, along with Gentrit Gojani. Etrit Demaj was a Crain’s 20 in their 20s winner in 2016, and Edi Demaj was a Crain’s 40 Under 40 honoree in 2018.
Edi Demaj said in a statement: “We're excited to bring our cutting-edge technology to the U.S. General Services Administration. is is a testament to the work our team has been doing since the founding of KODE. It's our opportunity to deliver for a country that continues to have a profound impact on our lives."
KODE's cloud-based software as a service solution, KODE OS, leverages machine learning and arti cial intelligence to automate operations and provide analytics, real-time monitoring and more.
e SaaS platform also enables property owners and managers to synchronize data across all building systems and software within a real estate portfolio to optimize operations and reduce energy consumption.
e contract is part of the $3.4 billion that the In ation Reduction Act allocated for GSA to promote developing and manufacturing low-embodied carbon construction materials and make federal facilities more sustainable and cost-e cient in order to achieve net-zero emissions in the federal building portfolio by 2045.
"We've been working hard to really become pioneers in shaping the future of smart buildings," Etrit Demaj said. "And we believe that we're really becoming the leader in the space, and we're going to keep cutting forward."
Bedrock was the rst client of KODE Labs and all of Bedrock’s Detroit properties utilize the startup’s services, including the Hud-
son’s site project, Hudson’s Detroit.
Other clients include Ford Motor Co., Michigan Medicine, Vancouver-based QuadReal Property Group and more.
KODE Labs was also part of the largest venture capital deal in Detroit in Q2 of this year, according to data from Pitchbook, Crain’s previously reported. On April 15, the startup received $30 million in investments from Jay Farner, founder of Ronin Capital Partners; Toronto-based Maverix Private
Equity; Vancouver-based TELUS Ventures and existing investor Florida-based I Squared Capital. It has received a total of $38 million in its two rounds of funding and serves thousands of clients globally.
In October 2023, Bedrock unveiled the Urban Tech Xchange in its Lane Bryant building at 1520 Woodward Ave., a new technology hub in downtown Detroit that utilizes KODE Labs’ smart building platform with data from the more
Center neighborhood in the fu-
ture, though a date has not yet been set. In April, KODE Labs told Crain's it planned to move to New Center early next year. e company has o ces in De-
crease its international team size to 200 total employees within the
"We started in Detroit, and we're really proud of the fact that we can
continue to keep scaling in Detroit and we hope that as we continue to grow, Detroit can become more and more that tech hub for for smart buildings," Etrit Demaj said.
The Modern Law Firm.
Edi Demaj (left) and Etrit Demaj are co-founders of KODE Labs, a real estate tech company used by Bedrock in all of its Detroit properties, including Hudson’s Detroit. KODE LABS
1Huntington
Place
1 Washington Blvd., Detroit
Total meeting space (sq. ft.):
723,000
Largest meeting space (sq. ft.):
623,000
Largest indoor exhibit space:
623,000
Michigan’s largest convention center offers the largest exhibit oor, over 100 digital signs, 2,500 on-site parking spots, a concierge and business center, on-site catering, and contractors on-site to provide services to meetings and events.
2. The Henry Ford
METRO DETROIT'S largest meeting and event venues
Events can take many shapes, from trade shows to conferences to employee pep rallies.
This list of the largest such venues in metro Detroit relies on square footage, but capacity can vary a lot by venue based on seating arrangements and other factors. Here are the venues that can handle the biggest of the big.
Largest meeting space (sq. ft.):
61,000
Meeting rooms: 20
Capacity (theater style/ banquet style/cocktail style):
4,000 / 2,000 / 5,000
MCC offers both the Sports & Expo Center and John Lewis Conference Center for events. They include free parking and internet, complete in-house audiovisual and catering services.
11. Detroit Marriott Renaissance Center
Lovett Hall.
3. Suburban Collection Showplace 46100
Meeting rooms: 41
Capacity (theater style/ banquet style/cocktail style): 12,000 / 6,000 / 6,000
Michigan's largest privately owned exposition, convention and banquet center plays host to exhibitors weekly and hosts the Michigan State Fair in the fall. It has an attached 126-room Hyatt Place Hotel, 25,000 square feet of pre-function space, 18-foot ceilings, wireless internet access and more than 5,700 parking spaces.
4. Ford Field
2000 Brush St., Detroit
Total meeting space (sq. ft.):
375,000
Largest meeting space (sq. ft.): 100,000
Meeting rooms: 24
Capacity (theater style/ banquet style/cocktail style):
65,000 / 1,200 / 5,000
The home of the Detroit Lions offers an in-house caterer, stadium tours,
on- eld activities, and attached parking structure. The capacity for cocktail/strolling supper-style includes the eld.
5. UWM Sports Complex
867 South Blvd., Pontiac
Total meeting space (sq. ft.): 370,000
The Pontiac complex purchased by mortgage giant UWM in 2020 is primarily a soccer complex but has ample space for other events. It has multiple soccer elds, eight basketball courts and an indoor track.
6. The Masonic
Meeting rooms: 35
Capacity (theater style/ banquet style/cocktail style): 4,404 / 1,144 / 1,144
Space for corporate functions with two theaters, ample break-out rooms, two ballrooms, full-service catering, audiovisual capabilities and valet or self-parking options.
7. George Gervin GameAbove Center
799 N. Hewitt Road, Ypsilanti
Total meeting space (sq. ft.): 200,000
Largest meeting space (sq. ft.): 20,000
Meeting rooms: 75
Capacity (theater style/ banquet style/cocktail style): 9,500 / 1,000 / 1,500
Formerly known as the Eastern Michigan University Convocation Center, the Gervin Center hosts EMU athletics but also is available for event rental, including conferences, trade shows and concerts.
8. Little Caesars Arena
2645 Woodward Ave., Detroit
Total meeting space (sq. ft.):
147,501
Largest meeting space (sq. ft.):
58,177
Meeting rooms: 11
Event spaces at the home of the Detroit Pistons and Red Wings include Heritage Hall, the outdoor Chevrolet Plaza and the Budweiser Biergarten. The spaces can accommodate up to 3,500 strolling.
9. Fox Theatre
2211 Woodward Ave., Detroit
Total meeting space (sq. ft.)
125,000
Largest meeting space (sq. ft.): 20,305
Meeting rooms: 3
Capacity (theater style/ banquet style/cocktail style):
4,000 / 800 / 1,500
Known for its ornate architecture and design, the Fox offers several event spaces for corporate receptions, galas, meetings and award ceremonies. The historic theater can accommodate an intimate reception for 50 to a full presentation for 5,000.
10. Macomb Community College, South Campus
14500 E. 12 Mile Road, Warren
Total meeting space (sq. ft.):
100,000
400 Renaissance Drive, Detroit
Total meeting space (sq. ft.): 96,104
Largest meeting space (sq. ft.): 25,801
Meeting rooms: 38
Capacity (theater style/ banquet style/cocktail style): 2,100 / 1,800 / 2,200
The hotel at the center of Detroit Renaissance Center offers hotel amenities at the city’s largest hotel, proximity to the Detroit River and its RiverWalk.
12. Michigan Science Center 5020 John R St., Detroit Total meeting space (sq. ft.): 85,000
Largest
The science center offers its own event management team, special exhibits, nine hands-on activity galleries, four theaters including two dome theaters, 4-D theater and meeting space, and a large science stage.
13. Emagine Canton
39535 Ford Road, Canton Township
Total meeting space (sq. ft.): 80,000
Meeting rooms: 18
Capacity (theater style/ banquet style/cocktail style): 183 / 250 / 600
14. Emagine Novi
44425 W. 12 Mile Road, Novi
Total meeting space (sq. ft.): 80,000
Meeting rooms: 18
Capacity, (theater style/ banquet style/cocktail style): 318 / 250 / 600
Movie theaters that have 10-18 screens with seating for 100-318, including the Super Emax screen. The lobbies can host strolling dinners and cocktail parties.
15. Heinz C. Prechter Educational and Performing Arts Center
21000 Northline Road, Taylor
Total meeting space (sq. ft.): 78,000
Largest meeting space (sq. ft.): 6,000
Meeting rooms: 14
Capacity (theater style/ banquet style/cocktail style): 800 / N/A / 200
The arts center of the Wayne County Community College District offers free parking, wireless internet, large theater, exhibit gallery and enclosable rehearsal space.
16. Macomb Community College, Center Campus
44575 Gar eld Road, Clinton Township
Total meeting space (sq. ft.): 76,600
Largest meeting space (sq. ft.): 32,600
Meeting rooms: 21
Capacity (theater style/ banquet style/cocktail style: 1,271 / 250 / 800
Multiple event spaces at MCC’s center campus include the Macomb Center for the Performing Arts, University Center/Professional Development Center and the Lorenzo Cultural Center.
17. Emagine Royal Oak
200 N. Main St., Royal Oak
Total meeting space (sq. ft.): 71,000
Meeting rooms: 14
Capacity (theater style/ banquet style/cocktail style): 175 / 100 / 200
The Royal Oak theater also includes restaurant space hosting up to 200 guests for strolling or seated reception.
18. MotorCity
Casino Hotel
2901 Grand River Ave., Detroit
Total meeting space (sq. ft.): 67,500
Largest meeting space (sq. ft.): 19,604
Meeting rooms: 16
Capacity (theater style/banquet style/ cocktail style):
2,200 / 1,500 / 2,200
The casino offers ballrooms and boardrooms, as well as the SoundBoard concert and stage venue.
19. Packard Proving Grounds
49965 Van Dyke Ave., Shelby Township
Total meeting space (sq. ft.): 65,600
Meeting rooms: 2
Capacity (theater style/banquet style/ cocktail style):
800 / 296 / 500
The Packard Proving Grounds is a 17-acre site rich in Detroit's automotive history and includes several impressive buildings designed by renowned architect Albert Kahn.
20. Music Hall Center for the Performing Arts
350 Madison Ave., Detroit
Total meeting space (sq. ft.): 60,000
Meeting rooms: 4
Capacity (theater style/banquet style/ cocktail style):
1,701 / 300 / 500
The performing arts venue built in 1928 offers its primary theater space, as well as a rooftop terrace and Aretha’s Jazz Cafe.
ALL-HANDS
incomes, but are still falling behind the rest of the region.
Overall, however, poverty is on the decline across the city, having fallen 8% over 10 years, from 42% in 2012 to 34% in 2022, according to the report.
“Even with the improvement, poverty remains a serious issue, with the poverty rate in the city being vastly higher than the national average of 13%, and Detroit having the highest poverty rate among the top 50 most populated U.S. cities,” according to the report.
e report highlights LaSalle Gardens west of New Center and Elmwood Park east of downtown as neighborhoods that have seen declines in poverty or “fallen out of concentrated poverty.”
e income trends in Detroit also point to the disconnect with regard to housing in the area, according to Lynch with DFC.
As of 2022, American Community Survey data shows the city as evenly split between renter-occupied housing and owner-occupied housing. And while Detroit stands as one of the more a ordable major cities in the country, the realities around income create challenges.
e report and its authors note that nding housing at the lower end of the income spectrum is becoming particularly di cult.
“ e biggest driver of housing affordability challenges is income,” said Ashley Williams Clark, vice president at Detroit Future City. “At the same time, what’s of concern is that we are also starting to see a decrease in the number of units available at less than $1,000 a month. Although our housing is still relatively cheap compared to other markets, the fact that we're seeing this loss at the lower end of our rental units is pretty concerning.”
Mortgage lending in the city also continues to increase but remains limited to certain neighborhoods. e increase, driven largely by Black homebuyers, has been gradual — from 220 loans in 2012 to 3,211 in 2022.
Education
Addressing the lagging education system is also greatly needed to meet the challenge of making Detroit a middle-class city again, per the report.
ere has been improvement, as the DFC report points out.
“Over the past 10 years, the educational attainment of Detroit residents has improved,” the report states. “A higher share of Detroiters now hold a bachelor’s degree or higher, and more Detroiters have completed high school.”
But a broader, systemic approach is also needed, Goss said.
“Schools are de nitely part of the problem, and also part of the solution,” Goss said. “As long as we continue to isolate one sector of the economy — in this case, Detroit public schools — we will never come to any resolution. If Detroit Public Schools (Community District) saw themselves as part of the economic future of Detroit, that’s a very di erent solution, that’s a very di erent path to the future.”
Livonia-based software rm in talks for deal with ADP
By David Carnevali, Ryan Gould and Crystal Tse, Bloomberg
Automatic Data Processing Inc., the human resources software provider, is in talks to buy WorkForce Software for about $1.2 billion, people familiar with the matter said.
ADP could announce a deal to acquire the Livonia-based company from its backers including Elliott Investment Management and Insight Partners in the coming weeks, according to the people. While talks are advanced, they could still be delayed or falter, the people said, asking to not be identi ed because the discussions aren’t public.
Representatives for ADP and Insight declined to comment. Representatives for WorkForce
HUNTINGTON
From Page 10
D.C.-based company issued a $252 million loan to a Sterling Group-connected entity for the $396.5 million project in April, according to Wayne County records. It also provided a nearly $112.3 million loan for the 500unit Residences at Water Square, land records show.
e convention hotel has been a top priority of the region’s tourism industry as it looks to bring more large meetings, conventions and events to Detroit.
Marriott describes its JW hotel ag as one “inspired by principles of mindfulness” featuring “programs and o erings that foster togetherness, allowing guests of all generations to reconnect with each other and experience their most meaningful moments together.” ere are more than 100 JW Marriott hotels in 35 countries, including one in downtown Grand Rapids, the brand’s website says.
Other Marriott brands in the city include the Element Detroit at the Metropolitan; the AC Hotel on Woodward south of Mack; the Hotel David Whitney, Autograph Collection; the Detroit Marriott at the Renaissance Center; the Westin Book Cadillac; and the Courtyard by Marriott on Je erson.
e new hotel would have ve podium oors with restaurants, a lobby bar, a pair of ballrooms and 50,000 square feet of meeting rooms. A pedestrian bridge would connect it to Huntington Place, the city’s convention center.
e project received a 30-year, $130.6 million Renaissance Zone tax break and an $11.6 million Public Act 210 Commercial Rehabilitation Act property tax break over 10 years.
Although the total Renaissance Zone package is $130.6 million, there is a state reimbursement of $48.5 million for local school and library taxes, bringing the net value of the tax break to $82.1 mil-
Software and Elliott didn’t immediately respond to requests for comment.
Founded in 1949, ADP handles paychecks for one out of every six workers in the U.S., according to its most recent annual report. e company has been extending its reach to provide a broad range of so-called human-capital management amid intense competition from payroll providers like Paycor and Paylocity.
WorkForce Software helps companies manage bespoke payroll needs, such as helping workers swap paid time o to colleagues, or paying people time-and-a-half when they sleep in after a long shift, according to its website.
Elliott’s private equity a liate announced a “signi cant equity investment” in WorkForce Soft-
ware in 2019, becoming an “equal partner” in the company alongside Insight, its owner since 2014, according to a statement at the time.
ADP fell 0.5% to close at $275.25 in New York trading last week, giving the Roseland, N.J.-based company a market value of about $112 billion.
lion, a Detroit Economic Growth Corp. executive said earlier this year. e total package between the Renaissance Zone and the PA 210 abatement is valued at $93.7 million.
Renaissance Zones allow for waivers of Detroit’s income and utility users tax, city and county property taxes plus state income tax.
e DEGC said earlier this year during the Community Bene ts Ordinance process for the project that the economic bene ts outweigh the value of the incentive package. Economic bene ts are anticipated to be close to $2.6 billion — the vast majority of which would come from spending by Detroit visitors attending conventions and events. e organiza-
tion also says that without the incentives, the project could not be built. If it is not built, the incentives are not awarded.
Neumann/Smith Architecture is the project architect for both the hotel and apartment towers. Macomb Township-based Colasanti Construction Services Inc. is the general contractor on both, as well.
A rendering of the under-construction JW Marriott Detroit Water Square convention hotel on the Detroit riverfront NEUMANN/SMITH ARCHITECTURE
WorkForce Software’s global headquarters are located at 38705 Seven Mile Road, Suite 300, in Livonia. | COSTAR GROUP INC.
Metro home prices, sales outpacing much of U.S.
New reports put spotlight on region’s home values is up
Metro Detroit home prices continue their upward trajectory, a far cry from much of the rest of the country. And those homes are being sold faster than most other major U.S. metro areas.
Two reports from digital real estate brokerage Red n and the latest data from the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index put a spotlight on the region’s increasing home values. e reports also show that Southeast Michigan remains among the most a ordable major metros.
e Red n data, part of which was released Sept. 24, explores how homebuying has gotten more affordable recently as mortgage rates have steadily declined.
e Red n data shows that the income in the U.S. needed to a ord a median-priced home dropped 1.4% last month to $115,454, with the median home price being about
$433,000. But in the tri-county region around metro Detroit, income needed to a ord the median-priced home is on the upswing.
Red n splits the region into two, with the Detroit metro area consisting of the city and the Wayne County suburbs, while the Warren region consists of the Macomb and Oakland county suburbs.
In the Detroit metro area, the $55,460 income needed to a ord the $200,000 median home was up 0.4% from a year ago. Meanwhile, in the Oakland and Macomb suburbs, the $89,561 income needed to afford a $322,500 home was an increase of 1.3% year over year.
Several metros that boomed during the pandemic with large inward migration — think large Sunbelt areas — saw declines in the income needed to buy a home.
A separate Red n report shows that the Detroit and Warren areas rank in the top 10 for regions with the fastest home sales in August.
In Detroit and Wayne County, the median number of days to sell a home was 20, while in the Macomb and Oakland suburbs, it was 17. Both areas are seeing slightly faster sales than a year earlier. Meanwhile, the monthly Case-Shiller report shows metro Detroit home values continued a slow and steady climb. e report released Sept. 24 shows home prices in the area were up 6.65% from a year earlier and about 0.4% from June.
Michigan Medicine hit with another data breach
By Dustin Walsh
Michigan Medicine has su ered another cyberattack that potentially exposed sensitive patient information.
e latest attack occurred on July 30, where an employee accepted an unsolicited multifactor authentication prompt for their email, giving cybercriminals access to the account and its contents.
e July attack is the latest for Michigan Medicine, which has noti ed patients of potentially compromised information at least four times in the last two years.
e Ann Arbor health system is currently notifying 57,891 patients that their health information may have been compromised in the attack. However, the system has yet to nd evidence that the attack was aimed at obtaining patient info.
But the emails and attachments in the account did contain communication for treatments and coordination for patients, forcing the system to notify patients as protocol.
Upon discovering the breach, the cyberattacker’s IP address was blocked and passwords were changed, the system said in a press release Sept. 26.
“We are constantly working to minimize the threat of patient data being exposed, and when incidents like this occur, we immediately take steps to investigate,” Jeanne Strickland, Michigan Medicine’s chief compliance o cer, said in a statement.
e hospital system noti ed 56,953 patients that their health information, including medical records, address, dates of birth, treatment information and insur-
ance data, may have been compromised during a cyberattack that occurred from May 23 to May 29.
Michigan Medicine was hacked twice in 2022, impacting more than 36,000 patients. e state’s health care sector has been under constant assault in recent years.
An August attack on Grand Blanc-based McLaren Health Care put its 13 hospitals into “downtime procedures,” rendering its electronic records system useless. Clinicians were keeping handwritten records and severe patients were being diverted away from its emergency rooms before the systems were restored nearly three weeks later.
In May, a hack of St. Louis-based Ascension Health also took its electronic medical record system o ine and, in turn, caused the 140-hospital system to divert patients from its emergency rooms and cancel elective procedures, including several hospitals in Michigan.
Valuable information is the primary target for threat actors. ose are generally broken down into two categories: personal identi able information and per-
sonal health information.
Personal identi able information, or PII, includes Social Security numbers and addresses. Personal health info, or PHI, involves things such as insurance plan identi ers, health conditions and more.
All of this information can be sold on the dark web to other criminals who can use it to create e ective phishing pro les to later extort unsuspecting people. A single health record can fetch more than $250 on the dark web, while a credit card number goes for less than $5.
But for the biggest groups, that information is simply a means to an end. e big sh is the organization that holds the data, like a health system. e criminals will take the data, often encrypting it on the system’s servers to render it useless, under the threat of releasing that data or decrypting the servers unless a ransom is paid. is can be very lucrative. For example, UnitedHealth reportedly paid a $22 million ransom after hackers shutdown its Change Healthcare software system, causing pharmacy and provider payment issues across the country.
Overall, home price gains in the U.S. slowed in July as high mortgage rates kept would-be buyers on the sidelines while inventory piled up.
e national report shows prices rose 5% from a year earlier, smaller than the 5.5% annual increase in June. After seasonal adjustment, prices in July rose 0.2% from the previous month, reaching a record for the 14th consecutive time.
Bloomberg contributed to this report.
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Metro Detroit homes have continued a slow and steady climb in value. | NICK MANES/CRAIN’S DETROITBUSINESS
Nick Manes
Michigan Medicine in Ann Arbor. E BRONSON/UM PHOTOGRAPHY
MARIJUANA
marijuana in the legal market this year — with consumers averaging a monthly weed expenditure of nearly $110, well above California’s at $37 per person monthly.
Michigan’s established and expansive network of marijuana processors and retailers make clandestine operations like Kejbou’s and others’ valuable, especially if there are no potential criminal charges.
In the Kejbou case, a Tuscola County judge ruled — and the appeals court concurred — that the state’s marijuana laws simply make severe prison sentences not an option. e state’s legal marijuana laws were designed to reduce felonies for marijuana possession and growing. e punishments, often viewed as draconian and severe, from the state’s Act 368 of 1978 that included up to 15 years in prison for possessing more than 99 pounds or 200 marijuana plants, no longer applied thanks to the voter-passed MRTMA.
“After the appeals court decision, there’s been reduced interest from prosecutors involving marijuana cases,” Kish said. “ ey simply do not feel there is a mechanism in place to follow through with criminal prosecution. e court ruling e ectively puts up a sign at the border, ‘Grow your dirty weed here.’”
e state’s basement-low marijuana prices are likely impacted by the in ux of illegal and untracked marijuana in the legal system.
e average price for an ounce of marijuana ower in August was $80.14, up from the lowest price on record $79.70 in July, according to data from the Michigan Cannabis Regulatory Agency.
Prices have fallen since legalization in 2019. e average price for an ounce of ower was $116.84 in August 2022 and more than $400 in August 2020.
ose price declines are driven by oversupply. e market is already saturated with the number of active plants being grown by
legal growers in the state up 47% year over year in August to 3.83 million plants.
With illegally grown plants entering the legal market, price compression is even higher and is shoving some legal market operators out. Dozens of legal marijuana businesses have buckled under the cost pressure.
David Morrow, CEO of the state’s largest marijuana grower Lume Cannabis Co., said the inability to stymie illegal grows is a disincentive for many growers to operate above board.
“ ey are sending a clear message that following the rules and being compliant is optional,” Morrow told Crain’s. “ e last time I checked, paying our licensing fees and excise taxes are not optional. Very few cannabis operators follow the all the rules.”
Messages to prosecutors in Calhoun County and Oakland County seeking comment were not returned.
Green without the threat of orange jumpsuits
e Kejbou conundrum has left law enforcement up in arms.
A 2023 raid in Calhoun County around the time of the Kejbou ruling involving a group of Chinese nationals importing and exporting thousands of pounds of marijuana from a warehouse in Albion, resulted in no criminal charges. e weed in question was being grown and stored in “deplorable conditions,” including mold and dog feces, according to Michigan State Police records obtained by Crain’s through the Freedom of Information Act. at marijuana held a street value of more than $28 million.
“We thought this was a great case, felony possession with intent to deliver along with the safety concerns. e conditions were deplorable,” Kish said. “ is case is a disappointment for us. We’ve lost a lot of traction. ere’s no disincentive to do this and if you’re caught, do it again.” It started in Illinois.
A state trooper pulled over a rented Chrysler Paci ca in Sangamon County near the state cap-
itol of Spring eld. e driver, a Chinese national, appeared nervous, according to police records. e driver informed the o cer he had own from New York to Oklahoma and was driving to Michigan. He didn’t know who he was meeting; he only had a cell phone number and an address, police said. Inside the vehicle, o cers discovered black bags containing 193.8 pounds of marijuana packaged in 170 vacuum-sealed bags.
Coordinating with the Michigan State Police, Illinois State Police allowed the delivery to continue and the van made its way to a nondescript building northwest of downtown Albion.
MSP cased the area and raided the property days later. O cers had to air out the building before entering as the smell of decaying plants and mold spilled out. A dog chained inside had defecated on the oor, according to investigative reports accessed by Crain’s under the Freedom of Information Act.
e building, o cially licensed by the state to grow 6,000 marijuana plants for medicinal use, held 9,298 plants and 236 pounds of packaged marijuana. e relative street value of the cannabis at the time would have been in excess of $28.3 million.
Yet the operator — Hongrui Enterprises, operated by Kevin Sea, a Chinese national and accountant in New York — had never made a legal market marijuana sale, had yet to pass a safety inspection and its weed never passed quality testing, according to the CRA.
It’s suspected that the operation attempted and failed to grow quality, mold-free marijuana for the legal market, instead turning to the illicit market, including importing and exporting black-market marijuana to and from Michigan.
e Kejbou ruling came down in the middle of the criminal investigation and railroaded the MSP’s attempt to criminalize the operations.
Sea and the group of Chinese nationals, many unwittingly participating in the crimes, faced no prosecution after the court ruling
STADIUM
property at Michigan Avenue and 20th Street in southwest Detroit, kicking its buying spree o with the $6.5 million purchase of the former Southwest Detroit Hospital in March. at property is 250,000 square feet and is expected to be razed, creating a nearly 5.57-acre vacant site.
en earlier this summer, entities connected to the team paid $6 million for a total of about 8.25 additional acres of primarily vacant land in multiple transactions. And last month, the team paid $2.55 million for the vacant 45,000-square-foot former Cornbelt Beef Corp. warehouse sitting on about an acre and a non-contiguous roughly 0.4-acre parcel of land on 20th just south of Michigan.
and the Calhoun County district attorney dismissed any and all charges. Attempts to reach Sea via email and cell phone were unsuccessful.
e CRA, which led a complaint against Hongrui last month in a likely attempt to revoke the operator’s medical grower license, declined to comment on the case or the issues posed by the Kejbou ruling.
Doug Mains, partner at Detroit law rm Honigman LLP and co-author of the MRTMA rules, said the appeals court interpreted the law correctly, but said eliminating the felony consequences for large-scale illegal operations, like Hongrui in Albion, was never the intent.
“ … I also think that case illustrates that the penalty provisions of MRTMA likely need to be amended,” Mains told Crain’s.
“ e overall intent of the initiative was to allow adults to cultivate and possess marijuana for personal use and to bring commercial cannabis activity into a regulated system, not to allow anyone to grow, possess or sell large amounts of cannabis with near impunity. Certainly, the intent was never to create a loophole that would allow individuals to receive slap-on-thewrist punishments for blatantly and egregiously violating the act by operating large-scale, clearly commercial, enterprises without having to get a license. To the extent such a loophole was created, I think it should be legislatively addressed.”
A change to MRMTA requires a three-quarters vote in the Michigan Legislature and, as of now, there doesn’t appear to be a groundswell to x the problem in Lansing.
Kish said that even though Hongrui’s weed stash was con scated, there’s no guarantee they didn’t acquire a new building and continue their e orts.
“We’ve seen it a few times since our section was created; we shut them down and they move to a di erent location and start up again,” Kish said. “If we don’t address this legislatively, and that’s the only way to x this, it’s going to get a lot worse. It’s already bad.”
e project is expected to be more than just what sources have said is an approximately 14,000seat stadium. e team has brought on Detroit-based Method Development LLC to work on other components, including what could be hundreds of housing units and other uses on the DCFC-owned property.
DEVELOPER
From Page 1
Plans for it are not known. e listing also included marina rights. Attempts to reach the Sterling Group were not successful. Cummings, through the same spokesperson, declined comment.
Earlier this year, Sterling Group, which is run by Gary Torgow’s children, completed the Residences at Water Square, a nearly 500-unit apartment tower with some eye-popping rents on the former Joe Louis Arena property. And within months, they started construction on a companion tower there, also 25 stories, that is slated to host a convention-style hotel with some 600 rooms under the JW Marriott ag. Detroit-based O’Connor Real Estate had the listing, which was part of a series of properties Cummings’ Detroit-based e Platform LLC listed for sale in November.
e others were the 4.34-acre former Joe Muer restaurant site between Gratiot Avenue and St. Aubin Street next to the Dequindre Cut; a nearly 1-acre site at East Baltimore and John R Road in the Milwaukee Junction neighborhood; and the 1.1-acre site of a former Big Boy restaurant at East Je erson Avenue and East Grand Boulevard in the Islandview neighborhood.
e East Je erson site sold to an unknown buyer for $537,500 last month.
Bags of marijuana ower sit on a shelf in a licensed grow facility. | NIC ANTAYA
The former Southwest Detroit Hospital site is expected to become home to a new Detroit City FC soccer stadium by 2027. KIRK PINHO
with the Tigers since 2022, said team owner Chris Ilitch’s investments have played a role in the excitement surrounding the team.
“It’s not just the large video board,” Gustafson said. “It’s new food items and other amenities around the park. Win or lose, showing people a good time has started to resonate.”
Merchandise sales are always strong, with the Old English “D” being one of the more popular logos in sports. e newly introduced City Connect line has performed well, and is among the highest in sales among MLB teams, according to the Tigers.
Also adding to that special fan experience will be the introduction of the Home Plate Club at
Comerica Park next season. e new 350-seat luxury club is part of millions of dollars in upgrades being made at the ballpark. e Tigers will also replace close to 500 seats behind home plate in time for Opening Day, set for April 4.
“ ere’s signi cant renewed interest in the club. It was already at a high demand, but the interest level has increased,” Gustafson said. “From the very beginning, the fanbase and the business community responded well to it, but the last month or so interest has picked up.
“You’d be hard-pressed to nd a metric in our business where we haven’t grown over the last year.”
e growth shows on the eld, too.
— e Associated Press contributed to this report.
mated the opportunities are valued at approximately $4.8 million over the original term of the loan, according to the proposal. At the time, the remaining balance of the loan was $3.53 million.
Under RTA operations, the QLine is eligible for sustainable funding, including state transit operating assistance through the Comprehensive Transportation Fund, MDOT capital match funding and the QLine’s share of federal funding the system gen-
erates for the region. e new avenues of funding, along with the state allocation of Convention Facility funds, will help to balance the QLine’s budget at no additional cost to the region’s taxpayers, according to the release.
“Today’s vote marks the nal step in bringing the QLINE under the management of the RTA,” Ben Stupka, executive director of the RTA, said in the release.
Ridership for the QLine is up more than 25% over 2023 levels and is on pace to reach record numbers in 2024, according to the release.
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chief resident from 2004-05, and he obtained a master’s degree in public health from the UM School of Public Health in 2005.“I am humbled by this immense opportunity,” Miller said in the release. “I owe a debt of gratitude to Dr. Runge for his leadership, mentorship and tireless work on behalf of our doctors, nurses, sta , students and, most especially, our
patients. I am also deeply grateful for the opportunity to continue working with our extraordinary team members...
“Moving forward, I am committed to working intentionally and collaboratively with colleagues from across the health system, medical school and the broader university to ensure that the University of Michigan retains its position as the place where patients want to receive care, colleagues want to work, discover and educate, and students want to learn.”
The RTA’s assumption of the QLine’s management and operations means that 10 years after its founding, the Woodward Avenue streetcar system will nally get all the perks of public transit. | QLINE VIA FACEBOOK
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MGM Grand executive re ects on casino’s 25 years in Detroit
Matt Buckley became the president and COO of MGM Resorts Midwest Group— overseeing MGM Grand Detroit and MGM North eld Park in Ohio — in 2022. His career in hospitality began two decades before as a front desk attendant on a graveyard shift for Logan Airport Hilton in Boston. Originally from Massachusetts, Buckley’s hospitality career took him across the country to Reno and Las Vegas where he worked for Hilton Hotels and Caesars Entertainment. In 2008, Buckley left the Las Vegas scene to become the vice president of marketing at MGM Grand Detroit, carving the way for his tenure with the company. “I thought that I would only be in Detroit for maybe three years, four tops and then head back to Vegas,” Buckley said. “(My family) actually loved living in Michigan, and I had no desire to go back to Vegas.” In his second year as president and COO, Buckley, 55, is leading MGM Grand Detroit casino and hotel as the business celebrates its 25th anniversary.
After working in various entertainment and casino markets, what makes Detroit different?
Las Vegas is what is referred to as the destination market. It’s a lot of one-time-a-year visits. When you get into a regional property, you have a large number of people who we refer to as “ultra frequent customers and guests” who come here, you know, ve days a week. I think the big di erence is you get to know these customers on a personal level. Your team members and yourself, you build relationships with customers and the team is a lot of the reasons why those customers come back here. Vegas is a special occasion type deal. Your local, regional casino is where you go to visit your friends.
What has been accomplished and changed since you’ve been a leader with the casino? What have you’ve been doing over the past couple of years?
I don’t think that the city gets to a place without a company like MGM investing in it, building in it, getting through the rough times as a stable source of revenue for the city … We contribute to the city ... (MGM has paid $3.5 billion since opening in 1999 to the state of Michigan and city of Detroit through gaming, municipal and state taxes.) ... But that’s only a small piece.
We’ve made some promises to the community that we were going to use local businesses. We were going to use minority-owned businesses and we were going to use women-owned businesses based in Detroit. We have 30%, I believe and probably a little higher, of our businesses that go to local, minority-owned and women-owned businesses. We made a promise with our employees and our team members that 50% of our team was going to come from Detroit, and we’ve lived up to that promise the entire 25 years that we’ve been here. And it’s not just we gave people jobs, we’ve given people careers.
What has changed in the 25 years since MGM Grand Detroit opened?
I think in any business that’s been around for 25 years, and you
By | Elizabeth Schanz
can see changes in two major areas. One it’s your customer base and two is your employee base, and what technology does.
When I got here in 2008 we were very much a slot-dominant property, where 85% of our revenues came from slots. We had basically manual processes for almost everything that we do. We had some long lines, and we had some people waiting in line, whether it was to get a new loyalty card or MGM Rewards card or to perform a transaction at a cage. We needed to have a lot more team members here on the property and then technology came in: kiosks to reprint cards, kiosks to redeem promotions, kiosks to cash checks. at technology made it faster and easier for our customers to perform a transaction.
MGM Grand Detroit being here now for 25 years. It was in 1999 when we opened, Detroit was a much di erent place, but our company had a vision that we could be the start of something big in a great city in the Midwest. at included creating jobs and careers for residents of the city of Detroit.
We had our 25th anniversary on July 29 of this year. Prior to that date, we had a special celebration for nearly 300 employees who were day-one employees … We couldn’t be where we are today without the help of our employees, of our partners, and really the entire Detroit community.
How do you see MGM Grand Detroit changing in the future?
We want to invest in our properties. We want to keep them as nice as they can be — luxurious is the word I would use. I think for next year we’re going to see some new carpet. If you really want to see something special, come down on a night when we’re changing the carpet out, when you have to lift up every machine and put carpet down.
How did the COVID-19 pandemic change the operations of MGM Grand Detroit? Were any of the changes permanent?
So prior to COVID, we had 93% of our slot oor and table-games oor was smoking and 7% was nonsmoking. And then when COVID hit, the Michigan Gaming Control Board asked that we stop smoking in the casino, and we did. And then when we reopened, we ipped that, and so we opened 93% of our oor as nonsmoking and 7% as smoking, and that was just really all slots and we wanted to add a piece with that had table games to allow some of our table games players that enjoy having a cigar or smoke at the table a place to play.
We’re constructing a new gaming zone. It’s going to feature tables and slots, and it’s going to allow smoking. at’ll open up in December and it’s going to be a
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pretty special place.
How has the legalization of sports betting — on-site and via apps — changed things for MGM Grand Detroit?
It hasn’t changed much for us as far as strategy and overall marketing. We have not changed how we market to customers, other than we now partner with BetMGM to bring in new customers to the property.
I know there was a 47-day strike by employees last year. How did that impact the bottom line for the casino? How did it impact staf ng?
We sta ed and we opened what I would call skeleton bare-bones operation. It (the strike) had a tremendous impact on revenue, on service … (the impact) was signi cant, signi cant enough that I don’t want to go through another one, I can tell you that.
When you look back at what was going on in Michigan, and really in Detroit, the Big ree were out. Blue Cross was out. I think the atmosphere was ripe for it, and the UAW being out was probably a key driver for our team’s and Motor City’s and Greektown’s teams to do the same.
I think the biggest piece from that strike is over with and our revenues are back, our volumes are back. Us engaging and embracing the team members is the key piece.
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Introducing 40 Young Professionals Defining Detroit’s Future. Come Meet Them.
Our 33rd annual celebration of 40 leaders younger than 40 honors exceptional professionals making waves across the state. From leading businesses to spearheading impactful community initiatives,these stars are shaping Southeast Michigan’s future.This year’s honorees join a prestigious alumni network including Mayor Mike Duggan,Judge Kyra Harris Bolden, and business leaders like Dan Gilbert,Dug Song, and Hiram Jackson.The celebratory dinner provides a unique opportunity to connect with these accomplished individuals and fellow attendees from diverse industries.
