Crain's Detroit Business Nov. 1, 2021, issue by Crain's Detroit Business

HOLIDAY PARTIES: Some companies bring them back, but it’s hardly partying like 1999. PAGE 3

Target-ing Detroit: Retailer finally makes its move PAGE 3

CRAINSDETROIT.COM I NOVEMBER 1, 2021

Detroit revamps its blight efforts City tries to turn around program beset by controversy

UNDER

FORTY

BY ANNALISE FRANK

DETROIT BUSINESS 2021

The city of Detroit is a half year and more than 600 tear-downs into the blight removal campaign it started in March in hopes of turning around a program marred for years by controversy. Pushed toward new equity and transparency goals by Detroit City Council, the city is spending $250 million to demolish 8,000 blighted homes and securing another 6,000 under the voter-approved Proposal N plan.

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Officials say the timeline is on track, that they’ve met benchmarks for hiring Detroit-based companies and that the city is looking to be held accountable so history doesn’t repeat itself. At the same time, however, the process hasn’t been without pitfalls: A wrong house was demolished on one occasion and some contractors have been reprimanded or placed on periods of leave. Plus, the long-running federal criminal investigation isn’t over. The past is a cloud and skepticism remains, driving community members to continue to question the government and take matters into their own hands. See BLIGHT on Page 26

What business wants out of next 4 years Duggan faces Adams in Tuesday election BY ANNALISE FRANK AND CHAD LIVENGOOD

Better housing stock for Detroiters. More and greener public spaces. Better public transit. A seat at the table for Blackowned construction contractors. A continued focus on rebuilding Detroit’s manufacturing base. And a more equitable recovery from a catastrophic public health crisis that has wreaked havoc on work and daily life in Michigan’s

Duggan

Adams

largest city. That’s just a sampling of the todo list Detroit business and civic leaders have for the mayor and City Council over the next four years. Detroit Mayor Mike Duggan is See MAYOR on Page 27

NEWSPAPER

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AT THE REINS

BASBLUE

Rakolta on ambassador job and return to Detroit. PAGE 30

New club offers women an alternative of their own PAGE 6

10/29/2021 3:18:44 PM

NEED TO KNOW

CHANGING HANDS

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT ` FLAGSTAR BANKCORP MERGER DELAYED THE NEWS: Amid mounting regulatory scrutiny of bank mergers, the proposed acquisition of Troy-based Flagstar Bancorp Inc. by a New York lender has been delayed until at least early next year. New York Community Bancorp Inc., headquartered on Long Island outside New York City, announced in an earnings report Wednesday that despite shareholder approval of the $2.6 billion acquisition over the summer, the merger is delayed pending regulatory approval. WHY IT MATTERS: The deal, which the banks had hoped to close in the fourth quarter, will wait until next year, it said. It’s emblematic of a tougher regulatory climate for mergers and increased antitrust scrutiny from the Biden administration.

` CO-OP GROCERY IN DETROIT GETS BOOST FROM STATE THE NEWS: A plan to build a new $18.4 million grocery co-op and other uses in the North End neighborhood of Detroit has received approval for a state grant and tax capture. The Detroit Food Commons project, which would bring a new 34,000-squarefoot, two-story building to the corner of Woodward Avenue and Euclid Street after demolition of a vacant house, has been described in city documents as “the only Black-led,

community-owned grocery store in the Midwest.” The building would be jointly developed and owned by Detroit-based Develop Detroit, which is run by Sonya Mays, and Detroit Black Community Food Security Network, which is run by Executive Director Malik Yakini and has been an advocate for access to healthy food for the Black community for 15 years.

Road and John Rakolta III, president of Walbridge Group, said Lyon Distribution Center II is currently under construction with 150,000 square feet of speculative building space to be complete in 12 months. WHY IT MATTERS: High rents and low supply of available space have developers increasingly looking at building industrial space on spec — without a tenant lined up.

` STELLANTIS PLANT DRAWS 2ND AIR QUALITY VIOLATION

WHY IT MATTERS: The co-op has been in the works for years and has 1,300 members who have already paid $200 ahead of its construction. It would bring an alternative for fresh food to a neighborhood that lacks them.

` WALBRIDGE FILLS ONE SPEC SPACE, STARTS ANOTHER THE NEWS: With a German auto supplier up and running in Detroit-based Walbridge Group’s new warehouse building in Lyon Township, the construction giant has started putting up another on spec. Webasto Roof Systems Inc. has leased the 280,000-square-foot Lyon Distribution Center I building off I-96 at Grand River Avenue and South Hill

THE NEWS: State environmental regulators have issued a second air quality violation notice for Stellantis’ yearold Jeep assembly plant on Detroit’s east side — this time for violating its emissions permit. On Oct. 20, the Michigan Department of Environment, Great Lakes and Energy cited the plant for not properly ducting emissions through a system that destroys volatile organic compounds, according to the violation. In a statement, a Stellantis spokeswoman said the violation was related to ducting requirements within the plant’s paint shop and said the automaker would work to address the issue promptly. WHY IT MATTERS: The plant’s effect on the surrounding neighborhood is drawing increased attention from activists. It’s the first new assembly plant to open in the city in more than 30 years.

New owner has big plans for ex-Hyatt Regency hotel ` After standing vacant for years, the former Hyatt Regency hotel in Dearborn has sold to a new owner with big plans. Rhodium Capital Advisors, a New York City-based investment company that owns and operates 17,000 apartments across the U.S., on Wednesday closed on the purchase of the long-vacant hotel and conference center for an undisclosed price from the U.S. Marshals Service. Rhodium is "a well-capitalized firm and excited to invest in a well-needed housing development in our region," said Amir Makled, partner at Hall Makled PC, who represented the property's new owner in the deal. Rhodium plans to convert the 772-room hotel, most recently called the Edward Hotel & Convention Center, into a multifamily, market-rate apartment complex with 375 units. In a subsequent phase, the new owner also plans to renovate restaurant and banquet space, Makled said. All told, Makled said Rhodium's investment in the project is expected to be $50 million.

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2 | CRAIN’S DETROIT BUSINESS | NOVEMBER 1, 2021

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REAL ESTATE

INFRASTRUCTURE

Why Target finally made its move in Detroit

POWER STRUGGLE

Retail giant eyed city for more than 5 years BY KIRK PINHO

After a nearly two-decade absence from its borders, Detroit is expected to get a new Target Corp. store straddling the Midtown and Brush Park neighborhoods. The Minneapolis-based retail giant had been eyeing the city for north of a half-decade, with its eyes keenly affixed on the seven-acre site owned by the Nyman family at the southeast corner of Woodward and Mack avenues. A potent retail cocktail that is based on bodies, wallets, cars and eyeballs all mixed together, resulting in what is expected to be a small-format Target outpost clocking in at about 32,000 square feet, about a quarter the size of the company’s typical stores. If all goes to plan, Target’s arrival in the future — the developer has not said when construction would start or be completed — would be a step forward in slowing what city consultants in 2018 deemed was about $2.6 billion in so-called “retail bleed:” Money Detroit residents spend in suburbs on goods and services not available in their neighborhoods. Discussions between the Nymans, Target and brokers over the years hinged on economic considerations as well as the possibility of putting the small-format store elsewhere when other suitors came forward. Ultimately, however, with a signed lease now in hand, Target is expected to serve as retail anchor of a $74.2 million mixed-use development led by Farmington Hills-based City Club Apartments LLC, which is run by longtime developer Jonathan Holtzman.

Lansing Board of Water & Light’s East Lansing Community Solar Park was financed, in part, by 150 residential and commercial customers who invested $399 in each solar panel to get a $26 monthly credit on their BWL electricity bills through a 25-year lease agreement. | CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

Fight brews over small-scale solar parks BY CHAD LIVENGOOD

On the eastern edge of East Lansing, an array of 1,000 solar panels line a field that was once a city trash dump decades ago for the hometown of Michigan State University. Because the one-time landfill is capped, its reuse was limited to remaining an open field. In early 2019, the one acre of solar panels with the capability of powering 60 homes began capturing sunlight for electricity for Lansing Board of Water & Light, the public utility company for Lansing and East Lansing. About 150 BWL

residential and commercial customers invested $399 for each solar panel and get an annual $26 credit on their bill for their investment. The solar park project in East Lansing is seen as a demonstration that the economics of small-scale solar works and can be replicated on vacant swaths of land in Detroit, polluted brownfields in Flint, under-utilized lots in small towns across mid-Michigan and the landscape above long-abandoned mines in the Upper Peninsula. “Many of these sites could work for community solar,” said John Kinch, executive director of Michigan Energy Options, an East Lan-

sing-based nonprofit that spearheaded the Burcham Park project. “But we still have a legislative framework here that makes it challenging for community solar to grow.” A push to allow entrepreneurs to build such small-scale solar arrays is the subject of fierce debate in Lansing. On one side, companies that want to build the arrays. On the other side are Michigan’s two large utilities, who argue that forcing them to connect such projects is inefficient and shifts costs onto their entire customer base.

IN 2019, SOLAR POWER ACCOUNTED FOR 1 PERCENT OF MICHIGAN’S RENEWABLE ENERGY CREDITS, A MEASUREMENT THAT TAKES INTO ACCOUNT ELECTRICITY FROM RENEWABLE SOURCES AND ENERGY WASTE REDUCTION.

See SOLAR on Page 25

See TARGET on Page 28

WORKFORCE

Companies, mostly, not ready to party like it's 1999, or 2019 BY ARIELLE KASS

For as difficult as 2020 was, this much was easy: No, there was no company holiday party, potluck lunch or other gathering to celebrate hard work in a hard year. In 2021, the calculus is more challenging. With vaccinations available and many employees gathering with friends and family — and returning to work in offices, let alone at manufacturing facilities and in hospitals — some are reinstating the celebrations of yore. But COVID-19 continues to infect thousands each day, killing more than 22,000 Michiganders. Is a party really the best way to celebrate? For some employers, the answer is still no. The United Way of Southeast Michigan is skipping its holiday party this year. Southfield-based Lear Corp. is not planning to have one.

Pontiac wholesale mortgage lender UWM is known for its holiday extravagant bashes. | COURTESY OF UWM

Neither is Realcomp, the multiple listing service. CEO Karen Kage said the company usually has a potluck lunch. But all the staff isn’t in the office at the same time, and so no celebration is planned. Others are going forward whole hog. Pontiac wholesale mortgage lender UWM is known for its extravagant bashes — 2019’s featured musical act The Chainsmokers and a giveaway for employees of 13 Cadillacs and 30 cruise trips, according to a report at the time by WXYZ Detroit. The details of this year’s soirée haven’t been made public, according to a company spokesperson. But the event will be held Dec. 4 at the TCF Center in downtown Detroit, the convention center that hosts the annual auto show and where UWM has held previous celebrations. The company’s 9,000 employees are all invited.

On a smaller scale, Detroit-based potato chip maker Better Made Snack Foods Inc. will treat 60-65 corporate employees to a party at The Brewery in Clinton Township and host a chicken dinner at its Detroit digs for about 150 factory workers, according to a company spokesman. Jackson-based Rair Systems, a cannabis grower and retailer, has also decided in the affirmative: Its executives plan to host a party, though they’re not yet sure where or exactly when. Rair was one of the rare businesses to convene employees in 2020 for a celebration, a “small gathering,” chief operating office Patrick Frakes said, limited due to the pandemic, but something executives thought was necessary for the company founded in early 2019. See PARTIES on Page 29

NOVEMBER 1, 2021 | CRAIN’S DETROIT BUSINESS | 3

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Financial woes for another ‘Book’ building threaten ownership Here’s your chance to own a Book building in Detroit. No, none of those Book buildings — the Book Tower, Book Building or Kirk Westin Book CaPINHO dillac Hotel (although I suppose if you had the scratch, you had your opportunity to own that earlier this year). I’m talking about the stately James Burgess Book Jr. mansion on east Jefferson Avenue, which has been taken back by a foreclosing lender and is expected to hit the market for sale in relatively short order. Built in 1911 and designed by renowned architect Louis Kamper, the 12,000-square-foot building had been owned by Historic Book House LLC, which is registered to Deirdre Golden. Birmingham-based Soaring Pine Capital Real Estate and Debt Fund II is the lender, according to a deed of the sheriff ’s sale recorded Sept. 23. The roughly $1.245 million mortgage is from December 2016 and a sheriff ’s auction was held July 29 with Soaring Pine being the highest bidder at $937,006. Historic Book House has until Jan. 29 to redeem the property by paying the $937,006, plus interest at a rate of $372.07 per day since the day of the foreclosure sale. Not likely to happen, a rep from Soaring Pine told me. “They have made a decision to sell and move on,” said Mike Evans, senior managing partner of Simon Group Holdings, the Birmingham-based parent company of Soaring Pine. “They have a lot of money in the house and have done a beautiful job (renovating it). ... (They are) wonderful people who we have tried to help as much as we can.” The occupants had expected to hold orchestral concerts for the Ars Poetica Chamber Orchestra and give

music lessons as a way of generating revenue to pay the loan back, Evans said, but the COVID-19 pandemic put a rest to that plan: “Other than a couple grants that were paid, we haven’t been paid anything by the owners,” he said. “We have a fund that funded this property, and that fund is closed and returning funds to individual investors inside the fund,” Evans said. “There are probably about 100 people (invested in the fund). You hate to do it, but at some point in time you have to get your money back to your people. You never like to do it, it’s never fun.” Two emails seeking comment were sent to Golden with no response, and a phone number listed for her was not working. Work had begun on the property as it was being converted from a multi-tenant office into a single-fam-

the tax credits to be realized. James Burgess Book was one of the Book brothers who, along with Frank and Herbert, developed what is now known as the Westin Book Cadillac hotel as well as the Book Tower and Book Building, all on Washington Boulevard. They had grand visions of turning the boulevard into an opulent thoroughfare unrivaled in the world, full of dazzling skyscrapers, architecture and shops. A second Book Tower had been planned but was never built. Much of their wealth and entrance into real estate came from their grandfather, Francis Palms, a Belgian immigrant who made his fortune in industries like land, timber, copper, coal, banking and insurance. In addition to the Westin Book Cadillac, Book Tower and Book Building, Kamper was also the architect who designed the Hotel Eddystone, Broderick Tower, Park Avenue Hotel, Water Board Building and many others.

“THEY HAVE A LOT OF MONEY IN THE HOUSE AND Construction moving HAVE DONE A BEAUTIFUL along at Lafayette West JOB (RENOVATING IT). ... You’ll imagine my surprise when, (THEY ARE) WONDERFUL after several years of being dormant, PEOPLE WHO WE HAVE there were multiple construction veon the site of the proposed LaTRIED TO HELP AS MUCH AS hicles fayette West residential project just WE CAN.” outside of downtown last week. — Mike Evans, senior managing partner of Simon Group Holdings, parent company of Soaring Pine

ily home, Curbed Detroit reported in November 2012. The property is on the National Register of Historic Places. A $400,000 “mini-brownfield” Michigan Business Tax credit was awarded on a rehabilitation project on anticipated eligible investment of $2 million. A spokesperson for the Michigan Economic Development Corp., which staffs the Michigan Strategic Fund that awarded the credit, said a certificate of completion for the project was issued last year, which allows

It’s easily the most activity I’ve seen at the property that formerly housed Wayne State University’s Shapero Hall pharmacy school since the building came down at the hands of demolition crews at the end of 2018. “We are moving expeditiously on our construction schedule and will soon be announcing the pre-sale date for condominiums, the Residences at Lafayette West,” Mark Bennett, the lead developer, said in a statement over text Wednesday afternoon. The vision is to bring 230 apartments and 88 condos to the 5.2 acre site in the $133.1 million project. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

10/29/2021 12:16:22 PM

LAW

Howard & Howard names 1st new CEO in nearly 20 years Jon Kreucher to take over for Mark Davis Jan .1 BY NICK MANES

As attorney Jon Kreucher gets ready to take the helm at Royal Oak-based business law firm Howard & Howard Attorneys PLLC, “steady as she goes” makes for the mantra. Kreucher, a veteran Howard & Howard attorney, was elected CEO of the firm in late December, and takes over Jan. 1 from Mark Davis, who is retiring after leading the firm for nearly 20 years. Kreucher, 59, acknowledged that more than a dozen attorneys have departed Howard & Howard in recent months, which he chalked up to normal churn in the legal industry. He pointed to the firm’s client-driven focus and “competitive compensation” for attorneys as top attributes that will help the firm continue in the years ahead. “I’m a big believer that if it ain’t broke, don’t fix it,” Kreucher told Crain’s in an interview last week. “Howard & Howard doesn’t need any fixing. Mark Davis has done a phenomenal job over 17 years. We have very talented lawyers here at the firm. We have great clients.” Initiatives Kreucher said he plans to focus on include greater use of technology for areas such as research and e-discovery, and “improving the diversity of the firm’s teams and fostering an environment which embraces a range of perspectives on work-life balance.” Kreucher, an attorney at Howard & Howard for nearly 20 years, has worked across the firm’s business and corporate practice, in areas including litigation, energy, labor and immigration practice groups. As part of taking on full-time CEO duties at the firm, which also has offices

in Chicago, Las Vegas, Los Angeles and Peoria, Ill., Kreucher said he would be giving up his law practice. Over the last several months, several attorneys Kreucher — who declined to comment to Crain’s on their decision — opted to leave the Howard & Howard firm in favor of other law firms. In late July, for example, five merger and acquisition attorneys from Howard & Howard — led by Joe DeVito, who chaired the firm’s corporate, finance and real estate practice — joined Troybased Dinsmore & Strohl LLP. Not long after, Tom Walter — who was DeVito’s commercial litigation counterpart at Howard & Howard — also joined Dinsmore. Likewise, in early August the Detroit-based Honigman LLP law firm announced the hiring of Brandon Booth, Megan Parpart and Tim Lee away from Howard & Howard. Kreucher said the departures are mostly just a cost of doing business. “It’s not unusual,” he said, acknowledging that upward of a dozen attorneys had departed in recent months. “It happens all the time, every day. We lost some attorneys, we’ve added others. It’s part of big law firm life.” To that end, Kreucher said the firm maintains the needed levels of staffing within its core areas. Howard & Howard has about 65 attorneys in the Detroit area and 140-160 total.

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Members of the Michigan State University women’s basketball team with Michigan State University Federal Credit Union board member Liz Lawrence (left) and CEO April Clobes (right). | MICHIGAN STATE UNIVERSITY FEDERAL CREDIT UNION

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Credit union offers contracts to MSU women’s basketball players BY NICK MANES

An East Lansing-based credit union will pay members of the Michigan State University women’s basketball team as part of new rules allowing student-athletes to receive compensation. MSU Federal Credit Union announced Thursday evening that it will offer compensation of around $500 per month to MSU women’s basketball team players for the 2021-22 season as part of name, image or likeness or NIL contracts. The announcement follows a recent similar deal struck with male athletes at the university from Pontiac-based mortgage lender United Wholesale Mortgage Corp. All of the 12 eligible players had

signed contracts, according to a spokesperson for the credit union, which has about $6.5 billion in assets. As part of the contracts, the student-athletes will make in-person appearances at events and participate in the credit union’s marketing, promotions and social media posts, and may be featured in print ads, billboards, videos, television commercials and on other platforms, according to an email from an MSUFCU spokesperson. UWM announced in September that the company had struck deals with all members of the MSU men’s basketball and football teams for their 2021-22 seasons. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

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COMMENTARY

In Midtown, a community brings women together

ntil this week, the stately 1887 Queen Anne mansion at 110 E. Ferry St. was just a house — a very large house, to be

Kelley

sure. Now, Nancy Tellem and Natacha HildebExecutive Editor rand hope to make it a community. BasBlue, a new nonprofit gathering place for women and nonbinary individuals, made its official debut Tuesday in Detroit’s Midtown ship matching, mental health programming, neighborhood with Tellem and Hildebrand as meditation classes, book clubs, panel discussions, film screenings and, eventually, conferco-founders. The newly renovated historic building offers ences and corporate retreats, said Miah Davis, a café, lounge areas, workspaces, conference a Detroit native who serves as BasBlue’s prorooms, and spaces for events and health and gramming and community manager. Programming will be simple to start — it bewellness programming. Services are provided by female-owned businesses with the goal of gins this week — but will grow with membercreating a space to recharge, network and con- ship, which currently stands at about 125, Danect with other women, from seasoned execu- vis said. The first floor and café will be open to the public, and guests don’t have to be women. tives to those just starting their careers. “Ideally, our goal isn’t to hold our members’ I got an early peek at the renovations during a Detroit Homecoming event in September. hand,” she said. “We want to hear from them The transformation of the three-story, and what their ideas are.” Annual memberships are $600 for those un8,000-square-foot building — formerly the Heritage House, a children’s art center — has der 35 and $1,200 for 35 and over. Quarterly been extensive. The rooms are bright and wel- billing is offered and scholarships are available. BasBlue’s board includes a who’s who of Decoming, from the first-floor kitchen and bar to cozy upper-floor alcoves with spots to retreat troit businesswomen and community leaders, including Melanca Clark, CEO of Hudor read. On Tuesday night, Gov. Gretchen Whitmer son-Webber Foundation; Gretchen Gonzales and Detroit Mayor Mike Duggan helped cut Davidson, musician and community advocate; the ribbon during a celebratory open house Holly Gores of the Gores Family Foundation; Jennifer Gilbert, CEO that included tours, of design firm Popchampagne and House; Bridget Mcsamplings from local Cormack, Michigan restaurants. Chief Supreme Court For Tellem, a longjustice; Carla Walker time entertainment Miller, CEO, Walkindustry executive er-Miller Energy Serand entrepreneur, vices; Deena Bahri, BasBlue is the culmichief marketing offination of a vision that cer of StockX; Ping started shortly after Ho, entrepreneur and her husband, Arn owner of Marrow, The Tellem, moved here Royce and Mink; and from Los Angeles to Cindy Pasky, CEO of join the Detroit PisStrategic Staffing tons as vice chair- BasBlue co-founders Natacha Hildebrand, left, and Solutions. man in 2015. She Nancy Tellem during the open house at BasBlue in Tellem envisions shared her goals in an Detroit. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS growing programinterview with Crain’s ming via corporate partners and donations: Mary Kramer back in 2019. “It really was a spark of an idea then, and the “Because we are a nonprofit, we can offer lower fact that we’ve brought it to fruition is just so fees. … We have been very successful in raising gratifying,” Nancy Tellem told me shortly be- donor support, and that’s going to continue. fore the opening event. “Frankly, this is just the Membership fees go right back into the organization.” beginning of the journey.” In the meantime, the focus is on raising Tellem bought the building from Midtown Detroit Inc. in 2018 and partnered with Hildeb- awareness of the organization and growing rand, a Los Angeles-based entrepreneur who membership. Though the name takes its cue has founded similar spaces in LA, New York from “bluestocking” — the 18th century term and London, to help make the idea a reality. for women with intellectual or literary interests They stress inclusivity, with a goal of bringing — BasBlue is a decidedly egalitarian place, its together women of all ages, backgrounds and founders say. “There isn’t judging,” Tellem said. “Our apwork experience. Hildebrand said she found Detroit’s re- proach is to be as welcoming and inclusive as sponse to the concept to be refreshingly dif- we can. And frankly, the more diversity we have here, it’s really aligned to our mission.” ferent. The mission — creating a sense of place — “Detroit women don’t just invite you, they pull up a chair and say, ‘Let’s chat.’ It’s very is an important one. In a world where the old unique to this city,” she said. “It’s incredible ... boys’ club is still very much a thing, there’s plenty of room for an actual women’s club, to know that’s the base you’re starting from.” BasBlue membership will include mentor- too.

DANIEL SAAD FOR CRAIN’S DETROIT BUSINESS

ROOT

COMMENTARY

Promoting tourism helps drive economic recovery BY CLAUDE MOLINARI

ravel is a key driver of economic growth. Across the country, more than one worker in 10 is employed in the tourism industry. In metro Detroit, tourism accounts for $6 billion in spending annually, conClaude Molinari tributing millions in tax revenue every year, and is president and putting nearly 450,000 CEO of the people to work. Detroit Metro But the travel and Convention & Visitors Bureau. tourism sector was the hardest hit by the pandemic. When travel slowed and businesses shut down to protect public health in our community, these shutdowns disproportionately affected the tourism industry. One in three people who lost their jobs during the pandemic worked in the hospitality and leisure sector. Visit Detroit is tasked with promoting Southeast Michigan. We work every day to tell the world what makes this place so special. Our mandate is to attract leisure travelers who eat in our restaurants and shop in our stores, and groups who fill our hotels and have meetings and events here. We know that effective destination promotion is crucial to bringing back the travel and tourism industry. When we attract visitors to metro Detroit, we attract new spending in our community and, more importantly, we bring hospitality and service sector employees back to work. And the benefits of destination promotion are not limited to the tourism industry. Des-

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

tination marketing raises the profile of Southeast Michigan, creating a positive brand that encourages businesses to locate here, attracts new residents, leads to real estate investments, contributes to our arts and cultural industries, and makes Detroit a better place to live. Destination promotion is for the benefit and well-being of every person in the community. It is an essential investment to develop opportunities and build quality of life to benefit the people here. Now is the time to invest in destination promotion. Research WE WORK EVERY shows that intent to DAY TO TELL THE travel is higher now than it has been since WORLD WHAT the start of the pan- MAKES THIS demic. Metrics like visits to our website PLACE SO and group sales in- SPECIAL. quiries tell us that more travelers than ever are considering visiting metro Detroit. This means that our work is more crucial now than ever to ensure that Detroit can compete with other destinations for our share of visitors. We know that metro Detroit counts on us to promote the community. We take that responsibility seriously because we know that what we do is helping to drive our economic recovery.

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

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

6 | CRAIN’S DETROIT BUSINESS | NOVEMBER 1, 2021

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involved in leasing construction

OTHER VOICES

Education inequities start at the schoolhouse door BY JAMETTA LILLY, MONIQUE MARKS AND ALICE THOMPSON

Over the past year, our nation rightfully confronted a moment of racial reckoning amid protests and calls for justice that followed tragic police violence. At the same time, Jametta Lilly is Americans were CEO, Detroit Parent Network. challenged to confront our nation’s long history of racial injustices. Across the U.S., from classrooms to boardrooms, Americans have engaged in tough conversations about our racial challenges. People from all walks of Monique Marks life were forced to is CEO, Franklin-Wright look deep inside themselves to Settlements Inc. consider how systemic racism has resulted in profound inequities, especially for Black communities. And indeed, many commitments for reform were made by CEOs, legislators and our neighAlice Thompson bors. is chair of the Yet, we cannot Education continue to ignore Committee, the place where so NAACP-Detroit many inequities Branch. regularly begin — and too often grow: the schoolhouse door.

school students come from low-income backgrounds. That means public school funding inequities are worse for many of our Black children. On top of that, Michigan’s Black students have less access to post-secondary options, experienced and effective teachers, rigorous courses and high-quality preschool programs. For instance, less than a third of Black 3and 4-year-olds have access to high-quality state preschool programs, and Black students are drastically underrepresented in rigorous courses, like AP courses. Fewer opportunities mean fewer opportunities to excel in school for stu-

dents who are Black, poor or both. And that’s not just harming our youth — it’s harming the prospects for our state to realize full success for our future talent base. Indeed, too often, our public education system serves as an engine of inequality rather than the ladder of opportunity that it should be. Consider that Michigan ranks in the bottom 10 for Black students in early literacy on the NAEP. Our state also ranks in the bottom 10 for Black students in eighth-grade math. When you consider that it simply costs more to educate students from low-income backgrounds, many of whom start school academically behind wealthier peers — and that we’ve

inequitable public school funding system to a fair system of opportunity for all students that supports low-income students funding based Morewith likely additional to be on their needs — and ensures MichiEngine of opportunity professionals, gan’s students of color have equal acincluding engineers, to resourcesand and opportunities. We To confront these injustices, we must cessarchitects also better hold our schools accommit to supporting our students shouldphysicians with greater needs with additional countable for their spending to yield funding and resources to achieve. That results. More likely to involved If Michigan is serious about addressmeans following the best practices of in its long-standing economic and raleading education states such health as Mas-careing and cial injustices that leave far too many sachusetts, which has committed to in- decisions insurance More to as much money for Black and many other students behind, vesting up tolikely twice at their company have high net in its poorest we must tackle the inequities that start low-income students worth, income school districts thanand students with no at the schoolhouse door — and make home value our public education system a true enadditional needs. We should start by transforming our gine of opportunity.

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Engines of inequality The challenges are significant, causing many parents to worry that Michigan’s schools are not doing enough to provide a great education for their children. They have good reason to be concerned: Michigan was one of 18 states actually declining since 2003 in early literacy on the National Assessment of Educational Progress. Nearly one in every four Michigan high school students are required to take at least one remedial course upon enrolling in one of our two- and fouryear college or university programs. There’s little doubt that Michigan is not committing the resources necessary to support its 1.4 million public school students, especially considering Michigan had the lowest education revenue growth of all 50 states between 1995 and 2015. Yet the problem is far worse for communities serving higher percentages of Black and low-income students, and that is a critical civil rights issue that we can no longer ignore. Indeed, it is the civil rights issue of our time. Tragically, Michigan is in the bottom for the funding gap between high-poverty and low-poverty districts, resulting in fewer resources for schools serving students who already have less. And while Michigan’s Black families enroll their children in a diverse range of secular and nonsecular private and public schools across our state from Birmingham to Benton Harbor, about 80 percent of Michigan’s Black public

already been short-changing our Black students for far too long — it becomes increasingly apparent what we must do.

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SOURCES: The Media Audit, ”Detroit MI Greater Metropolitan Area,” 2021; 2019 Signet Readership study.

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FINANCE

Flush with investment, Benzinga is pumped for its chapter 2 Deal with Canadian private equity firm Beringer Capital values the company at $300 million BY NICK MANES

The top executives at Benzinga say a recent infusion of private equity capital equips the Detroit-based financial media company to be at the forefront of wholesale changes to the investment landscape. The deal with Canadian private equity firm Beringer Capital — which will take an undisclosed majority stake in the more than 10-year-old Benzinga — values the company at $300 million, although no terms of the investment were disclosed. The deal aims to allow Benzinga to expand content coverage of financial markets, expand into new forms of media and grow its B2B partnerships. Executives portray Benzinga as the anti-Bloomberg, Raznick selling recurring subscriptions that can run up to $350 per month, providing up-to-the minute financial and stock data to primarily retail investors, as well as brokerage houses and their client bases. The demand for such a service has been growing for years, said Luke Jacobi, Benzinga’s senior vice president of revenue. That demand only became more acute earlier this year as the surge of GameStop and other so-called “meme stocks” briefly shined a light on the power of the everyday investor over powerful Wall Street investment funds. “The opportunity cost of not do-

Benzinga operates out of the One Campus Martius office building in Detroit’s central business district. |NICK MANES/CRAIN’S DETROIT BUSINESS

ing this deal (with Beringer) was too great,” Jacobi told Crain’s in an interview last week. “And what I mean by that is there is serious systemic change that has happened in the investing world over the past handful of years, where the number of individuals who are now able and empowered to have the tools to actively participate in financial markets has skyrocketed. And it’s not a trend that’s going to change.” While the changes have been ongoing for years, Jacobi noted that the surge of GameStop — in which retail investors earlier this year

drove up the share price of the video game retailer, putting a squeeze on professional investment funds with a short position — only highlighted that. “There’s no account minimums anymore,” he added. “Anybody with a cell phone has access to financial markets and information.” In addition to its subscriptions to everyday investors, Benzinga also makes its data and other services available to brokerages to put to use for their clients, while also holding conferences and other events for the investing community.

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Starting chapter 2 The deal with Beringer allows Benzinga to effectively turn the page, according to co-founder and CEO Jason Raznick, who has built the business, in recent years operating out of the One Campus Martius office building in Detroit’s central business district. “We’re calling this chapter two of the business,” Raznick said of the Beringer deal. “So chapter one was setting the infrastructure, putting these tools in place. Chapter two is taking this stuff that we’ve done, improving it, building the product extensions.” Raznick noted that he maintains an undisclosed equity stake in Benzinga going forward, and will “be very active in the business.” Detroit billionaire Dan Gilbert, the founder of Rocket Mortgage, is an investor in the company, and remains so post-Beringer investment, Raznick said. It’s unclear how much Gilbert has invested. “Benzinga epitomizes the spirit of Detroit,” Gilbert said of the company in an emailed statement to Crain’s. “With hustle, grit, and Midwest ingenuity, Benzinga has become one of the greatest voices in finance for everyday people.”

‘Harmonious business model’ Investors began approaching Raznick about a deal some years back, the CEO told Crain’s, but he felt the company was not yet ready. Then, about six months ago, Benzinga hired investment bankers to begin exploring deal options, and Beringer rose to the top for a variety of reasons, he said. Among them were past deals Beringer had done in the Detroit area, including with marketing company Budco in Highland Park. Observers of the deal say it comes as no surprise that institutional investors would express interest in the company, given the multiple revenue streams from individuals and financial institutions. “Those are all elements that are going to drive that value, because that recurring revenue stream is going to be compelling,” said Rajesh Kothari,

managing director at Cascade Partners LLC, a Southfield-based investment banking firm that was not involved in the Benzinga investment. “So (you’ve) got both value coming from consumers, and value coming from institutional partners through the data feeds. That’s a nice combination because one drives the other, so it’s a very harmonious business model.” Perry Miele, the chair and managing partner of Beringer Capital, also touted the Benzinga business model during an interview with Crain’s last week. “Their business model is around finding out what readers want,” Miele said. “If you have a subscriber, the way they stay as a long-term subscriber is by constantly improving your content. Investing in editorial, investing in bringing new categories of information that they find useful.” Benzinga, Miele noted, has a track record of covering a broad swath of financial matters, from cryptocurrency to financial technology to the powerful figures at the heart of the financial sector. Benzinga also brings in revenue by hosting events like the Benzinga Crypto Festival and Benzinga Cannabis Capital Conference. No revenue figure was disclosed for Benzinga, but Raznick said it has grown by triple digits in recent years, and the company disclosed it has more than 25 million monthly readers — a 400 percent increase from five years ago. The company also has 75 full-time employees, plus 50-75 contributors and more than 1 million email subscribers, according to Raznick. Beringer Capital has a track record of investing in media outlets. Earlier this year, the firm acquired real estate industry news outlet Inman News, and had previously acquired advertising industry publication Adweek. Despite long-running challenges in the business of journalism, the growing, primarily digital, media properties have become a hot commodity in recent years. In August, German publisher Axel Springer completed its acquisition of political insider news outlet Politico, which the New York Times reported was for more $1 billion. Miele said valuations for such companies, including Benzinga, reflect the type of growth that buyers expect going forward. “The valuations are growing because the companies we’re investing in are growing at a very high double-digit rate,” Miele said. Looking forward, Raznick said the goal for the company is “to reduce noise” for users who are just seeking reliable information for financial matters. To do so, the emphasis will be on improving technology and software. Asked whether he envisions Benzinga as a public company, Raznick said such an option remains possible. “If we execute, money I think follows. And we have to execute,” he said. “(Going) public could be one of the potential exits five years down the road. I want to do what’s best for the company at that time.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

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DETROIT BUSINESS 2021 Join us in saluting our annual class of 40 Under 40. The evening event will honor the upand-coming leaders in metro Detroit who have succeeded in business and civic endeavors under the age of 40. The event will take place 5-8 p.m. Nov. 4 at the Detroit Opera House. Tickets are $75 and include dinner. Register at crainsdetroit.com/events. COVID-19 vaccine verification through CLEAR pass or negative COVID test within 72 hours of the event will be required, and masking will be mandatory when not eating and drinking.

ince 1991, Crain’s has recognized the young leaders taking our region to new heights. This cohort of luminaries — now numbering about 1200 people — has a pretty stellar track record, if we say so ourselves, with governors, mayors, titans of industry, newsmakers, changemakers, lawmakers and at least two of Michigan’s richest people on the honor rolls. We expect members of our 30th annual 40 Under 40 class to make headlines for years to come — if they haven’t already. They have all risen to the continued challenges of the COVID-19 pandemic, but their accomplishments would be worth celebrating even in more normal times. From real estate, law and banking to mobility, electrification and data privacy to diversity, equity and inclusion, these young leaders are making bold moves in the world of Detroit business — and beyond. PHOTOS BY JACOB LEWKOW, PHOTO ASSISTANT: JASON BUSH, STYLIST: MADALYN KNEBEL

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Pierre Batton Executive Vice President, Small Business Services | Detroit Economic Growth Corp. Executive Director | Detroit Means Business Age: 34 Career trajectory: Batton leads small-business development and growth efforts at the DEGC, as well as the associated public-private Detroit Means Business coalition. He has been with the DEGC since 2018, starting out as senior small business programs manager. Before that he was a programmatic underwriter with Detroit’s Housing and Revitalization Department and a micro-lending administrator with ProsperUS Detroit. He has a bachelor’s degree in Africana Studies from California State University Long Beach and Master of Urban Planning from the University of Michi-

gan. Proudest achievement: Batton said one of the best times in his current job was responding when the COVID-19 pandemic hit. “We quickly mobilized to stand up, at that time, a $4 million grant fund. I mean, we literally did this within two weeks of everything being shut down and closed,” he said. It’s been exciting to get feedback showing the team has made an impact helping business owners, he added. What’s next: He and the DEGC want to make Detroit a national model for “inclusive and equitable small-business development,” he said. Detroit’s small-business own-

ers have seen a lot of highs and lows. “We’ve been back, moving toward our ascent, so we are diligently working to make that the case for our small businesses here in Detroit.” Words of wisdom: Batton says he regularly thinks about an old quote about how those who don’t learn from history are doomed to repeat it — attributed to philosopher George Santayana. Detroit’s history has “incredible lessons,” both good and bad, in its past, and as economic development officials look to build toward the future, “we should look to the past” and what’s worked and what hasn’t. — Annalise Frank

Meagan Belfinger Chief Audit Officer | Flagstar Bank Age: 34 Career Trajectory: Belfinger has been with Flagstar Bank for around seven years, first as director of regulatory affairs starting in December 2014. She moved up to the C-suite title of chief audit officer in late 2019. Before that she was in the public sector, starting in 2008 in the U.S. Department of the Treasury’s Office of Thrift Supervision responsible for supervising banks with a thrift charter. Then those powers were shifted to the Office of the Comptroller of the Currency and she became a national bank examiner there. Belfinger has her bachelor’s degree in finance and Master of Business Administration from Michigan State University. Proudest achievement: Being promoted to chief auditor. “I never envisioned myself being a chief anything, I definitely never envisioned myself actually reporting to the CEO of a company so the fact that

they trusted me after five years ... to take the helm of the entire audit program, to be the most independent person at the bank, to have the confidence ... in me that I could be the voice of independence for the whole company and identify any risks that we were taking ... that was probably the most proud moment for me.” What’s next: Moving forward, Belfinger says, she wants to keep growing Flagstar’s audit team, its performance and “best-in-class assurance.” Words of wisdom: “Don’t be afraid to ask the question. I think we find that, especially younger females if they’re in a room of older men, they’re going to be intimidated to ask the question because they think it’s stupid ... Have the confidence to ask the question, knowing there is probably someone else with the same one, and even if there isn’t, your question is important enough that it should be answered.” — Annalise Frank

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Michelle Busuito Assistant General Counsel | Blue Cross Blue Shield of Michigan Age: 39 Career trajectory: Passion has led Busuito on her path. “My dad always said when we were little, ‘You work too much to not enjoy what you do.’ That’s one thing that’s always been consistent.” The Kalamazoo College and University of Detroit Mercy School of Law graduate clerked for Michigan Supreme Court Justice Diane Hathaway before joining the Suburban Mobility Authority for Regional Transportation as assistant general counsel in 2013. Later, as counsel at Schiff Harden, she worked with Ford Motor Co. on mobility initiatives and emerging issues around data usage. Since joining BCBS in 2019, Busuito has honed in on data, a groundbreaking area of the law with new regulations taking shape. “You’ve already seen this in Europe, you’re starting to see it in the States,” Busuito said about data use regulations. “But I think it’s most regulated in health care, and we’re only going to see more regulation around data privacy. It’s fascinating to be in it now, and to be part of this change.” Proudest achievement: Her companywide work at BCBS implementing the CMS Interoperability rule — “a significant rule in the data privacy space,” Busuito said, which aims to empower consumers by allowing them to access and own their data. She’s also proud of her volunteer and pro bono work, most notably as an organizer of the Enough SAID initiative to process and prosecute over 10,000 untested rape kits in Wayne County. That work is still underway. What’s next: “My goal is to be a data privacy expert. You can’t really do it yet, because the landscape isn’t fully formed yet.” Words of wisdom: Be open to opportunity, Busuito said. Also: “If you’re passionate about something, I think that is where you succeed. If you don’t have that passion in what you're doing, it’s probably not the right thing.” — Amy Elliott Bragg

David Berman

Wadette Bradford

Managing Partner | Lorient Capital

Dealer Network Diversity and Investments Manager | Stellantis N.V.

Age: 34 Career trajectory: With a background in investment banking, Berman helped start Birmingham-based private equity firm Lorient Capital LLC back in 2015. The fund launched as a family office and spun out into a separate fund three years ago, mostly focused on health care, said Berman. “We’re really oriented around patient quality and outcomes and doing the right thing,” Berman said. “And we believe that (if ) we can do the right thing for patients, employees and the overall system, you’re going to be an overall winner in terms of your business.” Lorient closed on its second fund late last month, which it said was oversubscribed at $225 million. Proudest achievement: Building Lorient. “We’ve been really successful, not only our investment strategy, but also just forming great partnerships with these entrepreneurs. A lot of them have continued

to partner with and invest with us. Pretty much 100 percent of them are still kind of engaged with us in some capacity. It’s really just a testament to our process and how we’re really relationship-oriented. Same thing on our team. We’ve built a team that’s 16 or 18 people now. I try to empower them to take on a lot of responsibilities with culture.” Words of wisdom: “Try to find an environment where you can be empowered and accountable to make decisions, and learn from your mistakes. You don’t learn a lot when things go well, you learn when things don’t go well. So it’s kind of putting yourself in that situation where you can actually take ownership and get involved at that level. (That makes the) difference in how quickly you progress in your career.” Personal life: Berman has 3-month-old twin boys, Pierce and Parker. — Nick Manes

Age: 39 Career trajectory: After earning a bachelor’s degree from Alabama A&M University, where she had a full-ride scholarship, and a master’s degree from University of Alabama Huntsville, Bradford spent 15 years managing several different car dealerships and went on to graduate from the National Automobile Dealers Association Academy. In 2018, she was recruited by Stellantis to lead its Dealer Market Investment Program and all financial independence and economic equality initiatives for the minority dealer network. Proudest achievement: “My proudest career achievement is sourcing and developing a relationship with Live Oak Bank, the nation’s largest SBA lender, to support our minority dealer initiatives. The relationship was the foundation to ensuring all our dealers had real-time access to government funding during the

pandemic. Additionally, first-time minority entrepreneurs are able to become dealers, leveraging access to funds that grew from a relationship with Stellantis into an industry-leader for minority dealers across the automotive industry.” What’s next: “I live vicariously through every aspiring entrepreneur we help to become a dealer,” Bradford said. “My current business pursuit is to expand the Stellantis Dealer Network Diversity scope, in keeping with industry benchmarks. Meanwhile, I see myself advancing into senior-level management to achieve a seat at the table as a cognitive diversity thought leader, providing necessary input into the decision-making process. As for the company, I see us growing as a global leader ensuring all needs of minority dealers are met and the tools essential to sustain their business are readily available.” — Kurt Nagl

Anthony Chambers North America Brand Director for Diversity and Inclusion | Nike Inc. Age: 32 Career trajectory: Detroit native Chambers earned his bachelor’s degree from Tennessee State University in three years. While working toward an MBA from Oakland University, he worked in HR at Sodexo, filling jobs at Detroit Public Schools for janitors, electricians and other contractors. “I got really creative at making spaces and opportunities for people to find work,” Chambers said. His partnership-building efforts eventually led to a regional role at Sodexo — and caught the attention of a soon-to-be mentor who helped him land a job at Toyota. Chambers has since worked in DEI leadership roles at Toyota, Keurig/Dr. Pepper, Salesforce and Google, where he introduced a certification program to help people without four-year degrees connect to tech jobs at the company. The program is currently in place in Chicago and Detroit.

He started at Nike last month. Chambers has been Detroit-based since 2019. Current business goal: In his new role at Nike, Chambers wants to help the company get more rooted in Black and brown communities and recognize that “our purchasers are a cross-section of the community,” he said. That could mean getting more connected to Police Athletic Leagues or expanding the definition of athletics to include dancers and choreographers from the ballroom scene — “showcasing what talent really is and where it really comes from.” Side hustle: Chambers opened The Ivy salon in Ferndale in September, aiming to create “a space that is welcoming and comfortable for people of all creeds.” Words of wisdom: “Reach as you climb. Always make sure you’re supporting others, especially people that have been in positions you were in before.” — Amy Elliott Bragg

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Melanie D'Evelyn

Wafa Dinaro

Senior Director, Detroit Drives Degrees | Detroit Regional Chamber Foundation

Executive Director | Wayne County Economic Development Corp. Age: 38 Career trajectory: Dinaro, a Dearborn native, came out of the University of Michigan’s political science program in 2004 and went to work for the U.S. Department of Defense as a globe-trotting intelligence officer, working on the ground in multiple foreign countries for most of her 20s. She and her husband came back to Michigan in 2011 to start a family and her career veered from foreign affairs into communications and marketing at Blue Cross Blue Shield of Michigan and project management at Fiat Chrysler Automobiles. In 2018, Dinaro reinvented herself again, joining Wayne County’s economic development team for a job focused on selling the county’s excess real estate holdings. Among the big deals she brokered included selling the 511 Woodward Ave. building adjacent to the county’s Guardian Building headquarters and offloading the former Pinnacle race track in Huron Township in a deal that led to the construction of a new Amazon package fulfillment center. Proudest achievement: Dinaro led the county’s efforts to distribute $80 million in grants and loans to small businesses in Wayne County during the height of the COVID-19 public health crisis in 2020. The grants and loan programs aided 5,000 mostly

minority-owned businesses and more than 2,000 woman-owned businesses. What’s next: Deploying tens of millions of dollars in federal funding from the American Rescue Plan to make transformational changes for Wayne County’s long-term economic future. Lesson learned: When economic development projects largely ground to a halt during the height of the coronavirus pandemic, Dinaro started a weekly Friday phone call with mayors, township supervisors, municipal economic and planning directors and other elected officials

seeking to share information and access to resources, including how to help small businesses apply for PPP loans and grant programs administered by the county and state. Some 19 months later, the call has become a weekly routine for nearly 100 officials from Wayne County’s 43 communities. “Once you have those personal connections, it becomes much easier to just call them and say, ‘Hey, what do you have going on? How can we help?’” Dinaro said. “And it’s worked out much better when everybody is moving in the same direction.” — Chad Livengood

Age: 39 Career trajectory: D’Evelyn came to Detroit in 2015 from working in government affairs in Washington, D.C., when her husband entered a doctoral program at the University of Michigan. She initially started consulting on education policy for Excellent Schools Detroit and the Detroit Regional Chamber. That work morphed into the Detroit Drives Degrees program, an initiative D’Evelyn leads that seeks to boost the city and region’s percentage of adults with post-secondary credentials. Detroit Drives Degrees focuses on strategies to eliminate barriers to completing degrees. In 2019, D’Evelyn brokered agreements with Oakland University, Wayne State University and Henry Ford College to end a long-standing practice in higher education of holding a student’s previously earned college credits “hostage” for unpaid debts before they can be transferred for degree completion. “We’re the first place in the country to have a multi-institutional approach to combating that issue,” she said. Proudest achievement: In October 2020, D’Evelyn pulled together a 35-member coalition of business, government and philanthropic leaders who signed onto the first-ever Detroit Drives Degrees Talent Compact, making a 10-year commitment to a strategy for getting workers trained for jobs of the future. Philanthropic foundations

“RELATIONSHIPS AND TAKING TIME TO CULTIVATE THEM ARE ESSENTIAL.” have already pledged $18 million toward implementation of the compact’s initiatives. What’s next: Achieving the Detroit chamber and Gov. Gretchen Whitmer’s goal of getting 60 percent of adults over age 25 to have a college degree or credential by 2030 — or sooner. Words of wisdom: “Relationships and taking time to cultivate them are essential.” — Chad Livengood

CEO

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Edi Demaj Co-founder | Kode Labs

Congratulations

Venus Phillips and fellow honorees for being inducted into Crain’s 40 Under 40 Class of 2021

Age: 36 Career trajectory: Demaj and his family moved to the U.S. from Kosovo when he was 14 in 1999. He has spent much of his career in commercial real estate, working from 2008 to 2011 in asset and property management for Farmington Hillsbased Grand/Sakwa Properties and then Dan Gilbert’s Detroit-based Bedrock LLC from 2011 to 2014, doing things like property management, leasing and development. He is also a co-founder of Rocket Fiber, the high-speed internet service, as well as Kode Labs, a building operating system company that now employs around 65 people and does business in the U.S., Canada, Australia and, soon, Europe. Demaj has also invested in commercial real estate, developing 64 Watson in Detroit’s Brush Park neighborhood and a property in the city’s North End neighborhood for Kode Lab’s new headquarters. He also has an ownership stake in the downtown Detroit restaurant Besa. Proudest achievement: Being a co-founder of both Rocket Fiber and Kode Labs. “Having the impact we had with Rocket Fiber and Kode Labs, to change the whole industry — those are the big professional accomplishments, and being able to do both while growing a family with my wife and now son,” who turns 4 this month.

What’s next: Growing Kode Labs. “You can’t have smart cities without smart buildings, and we have built a platform that enables that,” Demaj said. Words of wisdom: Keep it simple. “Don’t overcomplicate what you’re trying to solve for,” Demaj said. “People try to solve for something and it becomes more convoluted or complicated. The second you can’t communicate it in a simple way, you have kind of lost it.” — Kirk Pinho

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Delta Dental of Michigan www.deltadentalmi.com | www.vibrantcommunities.com

Danny Ellis CEO | SkySpecs Age: 33 Career trajectory: Ellis’ role leading drone software startup SkySpecs makes for the “only real job” he’s ever held. The Ann Arbor company’s roots go back to a research project Ellis did at the University of Michigan, and he launched the firm as a startup in 2012. “I’ve got two degrees in aerospace engineering, and I don’t use any of it anymore,” said Ellis. “Everything I do is in business: fundraising, partnerships, sales, team building, all that kind of stuff.” That shift from engineering to running a company has proven a blessing, he added. “I would say that it helped me find

actually what I’m best at, (which is) understanding engineering concepts well enough to communicate them and get everybody on board,” Ellis said. “Whether that is hiring people, or getting customers or investors, I can connect all those threads between the actual underlying engineering concepts up to the commercialization of it, and why it matters.” Proudest achievement: “The thing I’m most proud of is honestly the group of people that we have built around us, and that is the team. Because we have an incredibly strong group of people. I’m very proud of everything they’ve accomplished. I can’t be sitting in my seat without

them.” What’s next: Ellis’ company provides software for drones to help inspect wind farms for the owners and operators. Given the push for renewable energy, Ellis says the company is well positioned. “We want to manage the risks so that the whole world can adopt it and confidently move forward with renewable energy as a core platform for all of our energy generation,” said Ellis. Interesting fact: When not working, Ellis plays lots of “strategic board games,” like Eclipse. Also, his ancestors came to America on The Mayflower. — Nick Manes

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Director of Pharmacy | Henry Ford Health System

“PEOPLE TRY TO SOLVE FOR SOMETHING AND IT BECOMES MORE CONVOLUTED OR COMPLICATED. THE SECOND YOU CAN’T COMMUNICATE IT IN A SIMPLE WAY, YOU HAVE KIND OF LOST IT.”

nho

Age: 39 Career trajectory: Gatia started his pharmacy career when he was a teenager, working as a pharmacy technician at a Walgreens in Troy. After graduating from Wayne State University with a doctorate in pharmacy, Gatia worked as a contingent pharmacist and consultant pharmacist at several health care organizations and spent 10 years at St. Joseph Mercy Oakland hospital in Pontiac before joining Henry Ford Health System as a pharmacy manager in 2016. From there, Gatia climbed the ladder to director, overseeing all of HFHS’ pharmacy services, in 2020. He also continues to consult for Employee Health Insurance Management Inc. in Southfield and teaches drug information and pharmacy administration in the HFHS residency program. Proudest achievement: “Despite the challenges brought on by the COVID-19 pandemic, I was still able to design and propel pharmacy innovation by developing our health system’s pharmacy shared services center, which will yield a projected conservative savings of

over $30 million in the next five years. ... This new practice transforms pharmacy into a strategic asset and care partner for the system by implementing solutions that address all dimensions of pharmaceutical utilization and expense, while supporting high quality, efficacious and safe medicine.” What’s next: “My ultimate career goal is truly to make a difference and to achieve a gratifying and lifelong career that allows for endless opportunities to learn and be challenged. With that in mind, my next goal is to be in a senior leadership position in a health care organization; this would allow me to make a larger positive impact through leading change across the health care continuum, as well as inspiring others to do so as well.” Surprising fact: Gatia completed a teaching fellowship program in undergrad through Wayne State University and the National Science Foundation, and taught middle school science twice a week for a year in Detroit Public Schools. “Such a rewarding experience. Kudos to our DPS teachers.” — Dustin Walsh

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Jennifer Gibson Levy

Jessica Hayes-Stallings

Vice President of Education and Academic Services | Henry Ford Health System

Founder and CEO | Skinphorea Facial Bar & Acne Clinic

Vice

Age: 38 Career trajectory: After graduating from Haverford College with a degree in anthropology and economics, Gibson Levy traded oil and gas futures in Chicago. She later transitioned into the health care industry by leading audits of Medicaid claims. Then, she founded an online medical records firm in Texas, where she worked as a vice president for five years. In 2014, Gibson Levy earned a master’s in public policy at Harvard University. She then became a senior associate in health care strategy for consulting firm Booz & Co. in New York before landing at Henry Ford Health in Detroit as the director of business development. In 2020, Gibson Levy entered her current role leading the health system’s $300 million education and research strategy for more than 2,000 trainees. Proudest achievement: Early in 2021, Henry Ford Health System finalized a deal with Michigan State University which will ultimately create a new medical school in Detroit in the future. The deal came after seven months of negotiating and defining the relationship, a process in which Gibson Levy played an integral role. “I felt that all of my experience contributed ... and the serendipity of the team that was assembled allowed us to develop a long-term agreement that will truly transform the landscape of health care in Michigan and beyond. I am so privileged to be a part of this team that is

Age: 39 Career trajectory: Hayes-Stallings has taken a winding road to get to where she is today, but she always expected success. Hayes-Stallings is the founder and CEO of Skinphorea Facial Bar & Acne Clinic, with locations in Royal Oak and Corktown in Detroit. The business, now five years old, has annual revenues of $1.2 million and a staff of 22 employees. The Detroit location, opened this summer as the company’s flagship location, includes an educational component. “There was never a doubt in my mind that Skinphorea would be successful,” said Hayes-Stallings, who previously worked as a housing counselor, assistant spa and fitness manager at MotorCity Casino Hotel and manager at a Farmington Hills Massage Green. “I just expected to accomplish more, much sooner. I’m now realizing that it’s not the destination, but actually the journey that I need to embrace and enjoy.” Giving back: Hayes-Stallings since 2016 has worked with the state of Michigan to develop an apprenticeship program that offers aspiring estheticians a chance to earn their esthetician’s license at Skinphorea before offering the apprentices a full-time position with the company. More than 50 metro Detroit residents have gone through the program, which is based at the Detroit location. Proudest achievement: Noticing a gap in the skin care market for the on-the-go client who has limited time for professional skin care services, Hayes-Stallings, with a bachelor’s degree in communications

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executing the definitive agreement and ensuring that our partnership will enable the vision desired by our organizational leaders and impressive historical experience.” What’s next? “First, I want to finish the execution of the definitive agreement with MSU. Second, I want to assist in the transformation of our education and clinical research enterprise to build our future and champion the greatness that Henry Ford already possesses. Lastly, I hope to create a

system and organization that survives long after I am gone.” Surprising fact: “I have been to nearly every museum in London,” said Gibson Levy, who was an exchange student at the London School of Economics. “When COVID is over, we would love to throw a kicker of a dinner party. I have made almost every possible theme and cuisine. There is really nothing I cannot cook.” — Dustin Walsh

from Eastern Michigan University, created an express service offering women a faster facial spa experience. Skinphorea offers medical-grade skin treatments while creating an elevated and personalized, yet convenient relaxation experience. Currently, Skinphorea serves more than 8,000 clients and 200 monthly VIPs. Plans for further expansion are on the table, too, Hayes-Stallings said. “Right now our team is strengthening its processes in Corktown to allow for more scaling,” she said. — Jay Davis

Congratulations

Pro

Michelle Busuito

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40 Under 40

Blue Cross Blue Shield of Michigan and Blue Care Network are proud to congratulate our very own assistant general counsel, Michelle Busuito, on being selected as a 2021 Crain’s Detroit Business 40 Under Forty honoree.

“DO AF REA CH

Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association.

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Josh Hovey, Andie Poole, Angela Minicuci Vice Presidents | Martin Waymire Career trajectories: In January, three accredited public relations professionals will become partners at Martin Waymire, a Lansing public relations firm. All Michigan State graduates, they took different paths to the firm. For Hovey, 38, it was a stop at the mayor’s office in Lansing, followed by a stint at the PR firm Truscott Rossman, where he was the spokesperson for the campaign to legalize marijuana in 2018. Minicuci, 33, worked at the Michigan Association of Counties, then as spokesperson for what was then the Michigan Department of Community Health before going on to lead the communications office at the state Department of Health and Human Services. And Poole, 37, worked in alumni relations at Michigan State while she got her master’s degree in public relations, then spent time as a legislative liaison for the Michigan State Senate and a product marketing manager at TechSmith before coming to Martin Waymire in 2014. Hovey and Minicuci joined the firm more recently. Planning for the next generation of leadership began five years ago, and Poole said they were strategic about bringing on people they liked and respected. “I wasn’t really sure I wanted to be an owner until the two of them came on board,” Poole said. “Owning a business is scary, and we’re all in our 30s. ... I really know that between our team, and especially the two people sitting next to me, we can overcome any challenge.” Proudest achievement: For Poole, it’s the I Vaccinate campaign, which predates the coronavirus pandemic and strove to answer questions to

urge parents to get more children vaccinated. It won a 2020 Silver Anvil award, the nation’s top PR prize. Minicuci said her work on the Healthy Michigan Plan, which expanded Medicaid through the Affordable Care Act, helped get more people access to health care. “It’s really cool to be a part of something that’s actually changing lives,” she said of the program, which sought to get 300,000 people signed up and now has nearly than 1 million participants. And for Hovey, it was his work on marijuana legalization, which led to the creation of a new industry in the state and has social justice implications, as well. What’s next: The team is still figuring out what a workplace looks like in a pandemic and navigating their own new roles as leaders. They expect to help other companies navigate a new future, too, while seeking impactful work. “We’ve really got our sights set on how we can be part of those big-picture issues,” Minicuci said. “We don’t want to just do PR. We ultimately want to do work that ultimately makes our state and our communities better. ... We have a lot of opportunity here to shape our future.” Words of wisdom: “Get a degree in English,” Poole said. “Writing is still one of the most important skills that you can invest in.” Hovey said he encourages people to raise their hand to volunteer. “If you want to find a path or a job or pursue an opportunity, you have to ask.” And Minicuci said she encourages people to be active in and curious about their communities. “Be open to new things,” she said. — Arielle Kass

Lauren King Project Engineer | The Means Group Inc. Age: 31 Career trajectory: After graduating with an engineering degree in 2012 and then going on to get her MBA in supply chain management two years later in 2014, both from Howard University, she spent four years in purchasing at General Motors Co. before shifting gears and joining Means Group in 2019. During that time, she has worked on redevelopment in the city’s Eastern Market food district as well as some of the planning and engineering for a new $50 million hotel downtown, the Cambria Hotel, and initial planning and development for a new industrial/warehouse building planned for Highland Park. Proudest achievement: Completing buildout of an Eastern Market building at 1532 Adelaide St. into commercial kitchen space across 15,000 square feet in a $3 million project. “I pretty much wore all the

hats — project manager, superintendent, project engineer, everything,” King said. What’s next: Eventually branching out into mixed-use and commercial development in Detroit on her own. “Detroit is still growing, so I’d like to be a part of that story and I’d like to be a part of stabilizing some of the neighborhoods.” Words of wisdom: Career shifts taught King, who went from purchasing at GM into the commercial real estate world, not to “shy away from a challenge.” In addition, especially as a woman in a male-dominated industry like commercial real estate, it's important to be confident and assertive, she said. “Don’t pass on the challenges,” she said. “Especially being a female in this industry, construction and real estate, it goes back to not backing off a challenge.” — Kirk Pinho

“DON’T PASS ON THE CHALLENGES. ESPECIALLY BEING A FEMALE IN THIS INDUSTRY, CONSTRUCTION AND REAL ESTATE, IT GOES BACK TO NOT BACKING OFF A CHALLENGE.”

Armen Hratchian Executive Director | Teach for America - Detroit Age: 39 Career trajectory: Hratchian’s parents were both teachers, so it’s no surprise he’s spent most of his career working to support teachers and education leaders. After earning a bachelor’s degree in English from Saginaw Valley State University and a master’s of public administration from Syracuse University in New York in 2006, he spent a year at New York University as an administrator in its public policy school before joining S&P Global Ratings as a municipal bond ratings analyst. While there, he sat in on committee hearings that moved Detroit to junk bond status. Wanting to be a part of solving problems here in Detroit, he moved back in 2009. He spent a year with Public Sector Consultants before he was recruited by the W.K. Kellogg Foundation and United Way to join Excellent Schools Detroit where he developed a scorecard for all 220 schools in the city, helped raise money to support education leaders and served as an adviser to the Coalition for the Future of Detroit School Chil-

dren, advocating for increased state investment in and restructuring of Detroit Public Schools. He left in 2016 and spent the next two years as COO of HighScope Educational Research Foundation, while earning an executive MBA from the University of Michigan. He was on his way back to the private sector when he got the call from Teach for America asking him to come and rebuild its Detroit affiliate in 2018. He couldn’t say no. Under his direction, the Detroit affiliate is recruiting middle-career, high-performing teachers and education leaders rather than first-year teachers and organizing educators and its alumni to advocate for more equitable funding and accountability evaluation systems. Proudest achievement: “Getting to see the courageous leaders I’ve

worked alongside grow and thrive and deliver for kids.” Current business goal: To make Detroit and Michigan the best place to be a teacher in the country. Words of wisdom: “How many can I give? One: Respect the work that came before you and build upon it. Two: Act with curiosity and humility. Three: Care about the people you get to serve and work alongside.” Surprising fact about him: “I walked onto Saginaw Valley’s football team as a senior in college, and it was the first time I’d ever played football in my life. I was invited to stay on the roster, though in a bench-warming role. It was such an ass-kicking. I needed one. It was deeply humbling.” — Sherri Welch

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Melanie Markowicz Executive Director | Greektown Neighborhood Partnership Age: 40 Career trajectory: “It’s certainly a wild ride,” Markowicz said of a career that’s taken her to Hong Kong, Germany and around Detroit. For much of the past decade, she’s worked for governments and nonprofits, including the Michigan Historic Preservation Network, Preservation Detroit, as the city planner for Hamtramck and in economic development in Wayne County. Markowicz has an undergraduate degree from Michigan State University and a Master of Fine Arts in Historic Preservation from the Savannah College of Art and Design. Before getting her MFA, she worked in marketing for real estate and finance companies. Proudest achievement: “Every time I’m able to touch a human life through my work, I’m so proud.” Markowicz said she likes to go into communities and talk to people about their cultural identities and the places that helped them make memories. She’s focused a lot on Black cultural heritage, highlighting underrepresented voices and stories. Notably, she spearheaded the preservation of the Negro League’s Hamtramck Stadium, turning it into a park that’s now a center of activity. “It’s been kind of

a passion for making meaningful connections between people and place,” she said. What’s next: Markowicz has a laundry list of projects that include rehabilitating the Second Baptist Church of Detroit, the oldest African American church in Michigan, with a $425,959 grant the Greektown Neighborhood Partnership received from the National Park Service; the construction of a 16-story residential tower in Greektown called The Exchange that’s already broken ground — the GNP worked on community engagement, design and other aspects of the project with the developer to make sure the project respected the historic neighborhood; the implementation of a vision for the neighborhood that involves improved streetscapes, new parks and greater density; and efforts to get the Orsel and Minnie McGhee house, which was instrumental in a U.S. Supreme Court case outlawing racially restrictive deeds, on the National Register of Historic Places. “So, I’m busy.” Words of wisdom: “You’re going to need help along the way. Accept that help.” — Arielle Kass

“EVERY TIME I’M ABLE TO TOUCH A HUMAN LIFE THROUGH MY WORK, I’M SO PROUD.”

Jason Krug

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Managing Director | Berkadia

CONGRATULATIONS 40 UNDER 40 HONOREE

PIERRE BATTON Detroit Economic Growth Corporation, Executive Vice President, Small Business Services & Detroit Means Business, Executive Director

Pierre Batton and his team are creating transformational opportunities for entrepreneurs and business owners, turning Detroit into the place for inclusive small business success.

www.detroitmeansbusiness.org • www.degc.org

Age: 35 Career trajectory: A graduate of Walsh College with both bachelor’s and master’s degrees, Krug joined Berkadia when he was just 21. While there he has represented institutional and private equity investors in multifamily real estate and, this year alone, helped lead a team that expects to sell more than $1.2 billion in properties this year. Proudest achievement: In the last 12 months, Krug has been involved in three multifamily deals in Michigan totaling more than $400 million: One for more than $180 million in Ann Arbor, plus one north of $130 million in Macomb County and another valued at more than $110 million in west Michigan. He also says the overall deals he has worked on brought more than $1.5 billion in out-ofstate equity into Michigan in the last two years. What’s next: Krug’s next goal is to mentor others looking to join the industry. “Helping as far as mentorship, coaching and paving a path for others,” paying forward what others have done for him, he said. Words of wisdom: Find a mentor. “Find people who have done what you want to do and been successful in the field you want to be in, and do what you can to gain

knowledge and understanding from them,” Krug says. Surprising fact: Krug does teambased endurance events ranging from six hours in length to 60 hours and spends time on the water with his family in Fenton. — Kirk Pinho

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William Lane CFO | Wayne Metropolitan Community Action Agency Age: 39 Career trajectory: After earning a bachelor’s in accounting from Eastern Michigan University in 2006, Lane landed a staff accountant position at Plante Moran. When the recession hit three years later, he moved to Randy Lane and Associates in Detroit as a staff accountant for a year and a half. Less than five years out of college, he was recruited by the director of accounting at Wayne Metro in 2011. Little did he know, he was being trained to replace the director and did, just eight months later. He was named director of accounting in

2013, chief accounting officer in 2016 and CFO two years ago. During his decade with the nonprofit its budget has risen from $22 million to $172 million in fiscal 2021, including $74 million in federal rental assistance contracts. Proudest achievement? Graduating from college. The Cass Tech alum is a first-generation college graduate in his family. What’s next: Honing his craft and tackling a new challenge: oversight of Wayne Metro’s human resource department. Words of wisdom: “If you are han-

dling funds for a nonprofit, you want to treat that money like it’s yours ... protect it, make sure you’re following all the rules, make sure that it’s getting to where it needs to go. You (also) have to spend your money. You want to show the government the need is there.” Surprising fact about you? “I love combat sports, mixed martial arts, boxing. I watch it religiously. It had a real big stigma the first 20 years of its existence. People think of a guy in a bar, drinking a beer and watching it, not an accounting professional.” What he does for fun: Video games.

“Right now I’m playing Marvel Contest of Champions, a cell phone game. I’ve met a lot of people across the world. I’ve gotten stock tips. Some guys have gotten married. We’ve all had our kids around the same time, shared general advice about moving, about buying a car. One guy works in the entertainment business in California; one guy is a firefighter. Another guy works in the oil business. We all say the same thing: we all want to quit. But we keep playing because of each other.” — Sherri Welch

prove the survivability of an armored vehicle. “The first time we delivered on that production contract, the Marine Corps brought in a light armored vehicle. I brought my kids — they got to see where our product goes on the vehicle, how it improves the survivability for the Marine, and it also really helped bring home that … we do things that save people’s lives.” What's next: For Lopez, the pandemic has underscored the importance of education: “How can we change manufacturing so it’s a welcoming environment, so your employees have plenty of opportunity to learn and grow themselves?” That work is starting at her business, but

she plans to spread the message more widely through her nonprofit board service, too. “We’re investigating all of these different ways to incorporate education, training, entrepreneurship, (and) expand it through all of these different ecosystems,” she said. Words of wisdom: “My best advice is never to blindly follow someone's advice,” she said. “Every person you'll meet has good advice to give — but it may not be what gets you to the next step on your path. Always check in with yourself. Make sure it fits what you want. Don’t sacrifice your values.” — Amy Elliott Bragg

Patricia Lopez President | Rose-A-Lee Technologies Age: 40 Career trajectory: As a girl, Patricia Lopez thought she wanted to be a music teacher, but her math and science skills were stronger than her musical abilities. Plus, she had grown up getting her hands dirty at the family business, Sterling Heights-based sheet metal stamping company Elmhirst Industries, which her father founded in 1994. “I did everything at that shop,” she said, from running presses to spot welding to programming and operating laser cutters and inspection equipment. So she pursued engineering at Lawrence Technological University, where she earned her bachelor’s and master’s

degrees, then went to work as a production supervisor at FCA Sterling Stamping Plant. She took a buyout in 2008 and, unsure what to do next, went back to Elmhirst Industries. “We were trying to diversify into the defense industry, but small businesses really struggle to enter that market,” she said. They realized it would be easier to start an entirely new business to bid on government contracts, so Lopez and her sister spun off Rose-A-Lee Technologies in 2013. The companies together employ around 50 people. Proudest accomplishment: Rose-ALee produces an upgrade kit for the U.S. Marine Corps designed to im-

Gus Malliaras

Tyrel Kirkham

Founder and President | Detroit Wing Co.

Vice President of Brand and Marketing Strategy | Detroit Pistons

Age: 37 Career trajectory: Malliaras has been in the restaurant business in some form for a long time. From 2004 to 2010, he was a project manager for Eastpointe-based Renaissance Construction Group, managing small-to-medium sized restaurant projects and government contracts. Then, from 2010 to 2014, he owned and operated Zack’s Hotdogs in Warren, shuttering the business to pursue his latest venture — Detroit Wing Co. Proudest achievement: Malliaras believes the team around him has helped the business thrive. “I’m a operations guy. As our business has grown, it’s turned into a corporation. There are so many sides to the business, sides I wasn’t familiar with,” said Malliaras, who is planning a new 50,000-squarefoot corporate office in Eastpointe. “I couldn’t be a one-man show handling legal, accounting, franchise sales and operations. I surrounded myself with people who are really, really talented. The faster

Age: 38 Career trajectory: Kirkham has covered the corners of the country in his various roles. Before joining the Pistons in August 2020, he served as vice president and general manager of merchandise for the Los Angeles Rams NFL franchise. Before that, Kirkham spent close to 14 years in New York in roles with venue operator BSE Global, and with the Brooklyn Nets and the New York Mets in marketing and branding roles. Kirkham, with a bachelor’s degree in sport and fitness administration from the State University of New York College at Cortland, served as an intern with the Mets before his seven-year professional tenure with the team as a merchandise coordinator, and manager and director of venue services. Proudest achievement: Kirkham has been the central figure behind the reimagining of the Pistons brand — an endeavor that includes partnerships with rapper and west side native Big Sean and Martin Lawrence, the launch of a Detroit-centric lifestyle team logo, a reinvented merchandise line website and, overarchingly, a larger organizational focus on building the Pistons as a lifestyle brand. Kirkham has also led the organization’s recent investment and dedication to the small businesses of Detroit. “I’ve worked with some incredi-

we grow, the more people who are attracted to work for us. It’s a snowball effect. We just hired the former director of operations for Tim Horton’s, who ran 500 restaurants for them. That’s huge for us.” Competitive fire: The wing game is filled with players, but the competition did not deter Malliaras. The original Detroit Wing Co., located at 17535 E. Nine Mile Road, is located one mile from a Buffalo Wild Wings in one direction and a Wingstop in the other. “When I was starting off, I weighed a couple different options,” said Malliaras, whose 26-location, 152-employee business will bring in $21.5 million in 2021. “I considered burgers, wraps. I didn’t pick wings because of a lack of competition. I think competition makes us better. I know what we do. I know what sets us apart. More competition drives us to keep improving.” Malliaras plans to open 30 more restaurants in 2022, including locations in Ohio and Florida. — Jay Davis

ble local artists, entrepreneurs and small businesses during my time here, and I’ve learned what Detroit truly represents,” Kirkham said. “I’m most proud, though, of being a 17-year industry veteran with an abundance of memories, relationships, and most importantly friendships that I’ll cherish forever.” Passion project: Kirkham has spent his entire career in sports, a dream for a lot of fans. But he said that fan-

dom isn’t reason enough to embark on a career in the field. “There has to be a deeper passion and desire to be a part of the inner workings that make the magic happen behind the scenes,” Kirkham said. “It’s important to note that where you ultimately want to be isn’t necessarily where you’ll start, but determination coupled with purpose will guide you to your desired outcome.” — Jay Davis

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Paul Mersino Vice President, Director and Shareholder | Butzel Long Age: 38 Career trajectory: Mersino earned his bachelor’s degree from Northwood University and his juris doctor degree from Ave Maria School of Law. While in law school, he interned at Detroit-based Butzel Long, where he has been the past 14 years. Mersino handles a range of issues, including multimillion dollar trade secret cases, automotive supplier disputes and other complex commercial litigation. He has been on the firm’s board of directors the past two years. Proudest achievement: “As far as litigation matters go, probably my biggest quote unquote win was a couple years ago. I won a verdict after trial for $1.25 million for our (automotive) client. It definitely was not a slam dunk case. More broadly, the proudest moments of my career have just been being here at the same firm for my entire career so far, being fortunate and lucky enough to make it to the board of directors, where I get to help continue the legacy of a really great institution.” Current goal: “I’m trying to learn as much as I can about the business side of the firm and actually running a business. I do enjoy that part of the practice. It takes a different part of the brain and different efforts than trying litigation matters, but I enjoy it, so my hope is to continue to help grow Butzel Long. We’re in growth mode now. Butzel Long is not only one of the oldest law firms in the city of Detroit, but we’re one of the top 10 oldest companies in the city. My goal is just to continue to build on the legacy that we’ve had for over 150 years now.” — Kurt Nagl

“MY GOAL IS JUST TO CONTINUE TO BUILD ON THE LEGACY THAT WE’VE HAD FOR OVER 150 YEARS NOW.”

Dustin McClellan

John Morgan

Founder and CEO | Pontiac Community Foundation

Chief Financial Officer | Midway Dental Supply

Age: 31 Career trajectory: After earning a Bachelor of Arts in Intercultural Studies from Global University in 2012, Dustin McClellan joined the Power Company Kids Club as its Pontiac director. He was familiar with the provider of after-school and weekend programs for kids, given that he’d attended its programs from the time he was 7 years old up until high school. After eight years there, McClellan founded the Pontiac Community Foundation in May 2018 after seeing the systemic needs children and families living in the city were facing and wanting to change them. The organization is engaging philanthropy, business and community leaders to tackle Pontiac’s most pressing issues. Among other work, the $1 million foundation is awarding scholarships and small business grants and early this year teamed up with Kirk in the Hills, a Presbyterian Church congregation in Bloomfield Hills, to purchase and forgive $5.5 million in medical debt for Oakland County residents. Proudest achievement: Starting the foundation. “As a part of that,

Age: 39 Career trajectory: Morgan has worked his way through the finance departments of many of Michigan’s biggest companies. He started his career at Plante & Moran before stints at General Motors and Stellantis (formerly FCA), Trico Group and Delphi Technologies. But Midway, a startup, gave Morgan the opportunity to jump out of middle management and become the financial leader for a growing company and apply all he’s learned at his previous multinational employers. Proudest achievement: Morgan’s first day at Midway Dental was March 16, 2020. Two days later, all of the state’s dental offices — Midway’s clients — would close due to the coronavirus outbreak. Morgan repositioned and used the downtime to learn where the business had cracks and built up the company’s back office infrastructure, secured $2 million in supply chain financing and grew revenue by nearly $50 million over the year before in a unprecedented environ-

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the work we did at the height of the pandemic ... to really meet the basic needs in the city and to bring a collaborative of organizations together to meet those needs.” What’s next: Continuing to grow the foundation, and raising its profile so it is seen as a place for meaningful philanthropy for people in the region and as an organization that makes a long-lasting impact on the community. Words of wisdom: “Don’t be afraid to collaborate.” Surprising fact about him: “I had a pretty serious speech impediment as a child, both stuttering and a really bad lisp. It was just really hard to communicate as a child. But speech therapy (and) practicing helped (me) gain confidence over the years.” What you do for fun? “I serve as a pastor in my spare time. I speak to people and encourage them, and I get up in front of crowds and talk to them about their faith and their journey. That’s exciting to me and a good example of how far I’ve come.” — Sherri Welch

ment. What’s next: Working on sustainability as the young company continues explosive growth, and looking for more financing and leveraging opportunities to ensure cash flow remains secure. “We grew before but we didn’t get the operating leverage. To make sure we grow, our profitability continues to grow. In order to grow, we need cash. My job is to keep my eye on cash.” Words of wisdom: “Become a strategic partner to the CEO and other leaders. Learn the business and (earn) their trust because it allows you to integrate into the business and understand what’s happening in real-time. It’s a lot easier to navigate the icebergs when you know what they are.” Fun fact: Morgan bleeds ... cyan? The CFO earned a bachelor’s degree from Michigan State University and an MBA from University of Michigan. His allegiance is to MSU’s basketball team and UM’s football team. — Dustin Walsh

Austin Niemiec Executive Vice President | Rocket Pro TPO Age: 35 Career trajectory: Following graduation from Hillsdale College, Niemiec took a job as a loan officer at what is now known as Rocket Mortgage, and has spent his entire “grownup career” at the Detroit-based financial services company. Niemiec now runs Rocket’s entire wholesale channel, working directly with mortgage brokers around the country. That experience over the past five years, he said, has been a different experience than how he started in the company, working di-

rectly with consumers. “Moving on to the B2B side, five years ago, it was a whole different atmosphere. Working with small business owners, which is really the heartbeat of America, and understanding that every broker is different. Some are small, some are large, some have been around for decades, others are just starting. To really understand each of their unique situations and how we can help them grow is much different than helping a consumer, but just as rewarding for sure.” Proudest achievement: Keeping up

with the breakneck pace of the mortgage sector in 2020 and the work that Rocket had to do amid the pandemic in supporting the broker community. “All while doing it virtually,” said Niemiec. “Having our team go from working in our beautiful buildings in downtown Detroit and quickly pivoting and getting technology set up in their homes.” Current business goal: Finding ways to leverage the name recognition Rocket Mortgage has developed over the past several years in an effort to further offer support to

mortgage brokers around the country. “We have the largest … consumer-facing mortgage brand in the country,” Niemiec said. “And we're raising the bar to help find different ways for brokers to lean on that brand to grow their business.” Fun fact: Niemiec says he was part of the first wave of Rocket Mortgage employees — then Quicken Loans — to migrate from the company’s former Livonia headquarters to new space in downtown Detroit over a decade ago. — Nick Manes

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Venus Phillips Managing Director | The Kresge Foundation Age: 38 Career trajectory: Phillips wanted to go to school in Washington, D.C., and received a full ride to Howard University. She got even more out of the experience than she expected, including a finance professor who encouraged her to take the CFA exam and helped her land a job at JPMorgan as a wealth adviser in its private bank. She soon moved on to the investment strategy team, but left to get her MBA at the University of Chicago. Phillips worked at NextGen Capital Partners, the University of Chicago’s office of investments and as a portfolio manager at Morningstar before moving to Fiat Chrysler,

where she became the head of public markets for the asset management group. She came to The Kresge Foundation in 2019. “I felt the pull to do something more mission oriented,” she said. “I’ve loved being in a place that’s aligned with my values.” Now, she’s working on affordable housing, something she said is personal to her after moving frequently due to her mother’s Air Force career and seeing the effect of instability on others. Proudest achievement: “Becoming a managing director at a major foundation is an incredible achievement for a woman of color.” What’s next: Phillips said she as-

pires to be a chief investment officer. In the near term, she’s focused on improving the pipeline and retention practices for minorities in the field, including through mentorship. Phillips said it’s important for people to see others like them in a role they want, so they can see a way to get there. Words of wisdom: “Don’t underestimate the power of authentic mentorship. There may be people you reach out to to get advice. But with an authentic mentor, it’s more of a feedback loop. They have honest and sometimes tough conversations with you.” — Arielle Kass

Danielle North Owner | Kidz Kingdom Executive Director | Degree Forward Age: 39 Career trajectory: North is an entrepreneur in childcare and women’s empowerment who started up an indoor playground called Kidz Kingdom and a camp for youth entrepreneurship. She also founded and manages the Detroit Women’s Leadership Network with 10,000 members on Facebook. Her career as an education consultant since 2015 recently evolved into becoming executive director of Degree Forward, a nonprofit initiative with state funding that’s focused on helping those who left college complete their degrees. She has a bachelor’s in sociology from Central Michigan University. Proudest achievement: “Charting out my own path, becoming an entrepreneur and the subsequent initiatives that I launched in that space including ... (the women’s network),” she said, as well as having “the courage to believe in myself and my capabilities without a boss or employer setting out what the

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guidelines were.” What’s next: North bought a 10,000-square-foot building in Detroit in August and recently closed on construction financing. “This space will culminate all my passions and my vision for making an impact on the city, on children, women, and having equitable solutions for childcare and motherhood,” she said. She plans to house Kidz Kingdom, space for parents, space for entrepreneurs and a restaurant there. Lessons learned: “It's in the face of adversity and defeat that I have ... risen to my greatest accomplishments,” North said. “For those who are struggling right now with their purpose, dreams and ideas and fighting through job security while also trying to materialize these visions that seem lofty, just go. Don’t look back.” Don’t listen to the negative voices around you, she added. If she’d done that, she wouldn’t have been able to accomplish what she has. — Annalise Frank

Justin Orenduff President and Founder | DVS Baseball Director of Baseball Operations | United Shore Professional Baseball League Age: 38 Career trajectory: Orenduff was selected 33rd overall in the 2004 Major League Baseball Draft and pitched as high as the AAA level for the Los Angeles Dodgers. His playing days were cut short due to a shoulder injury that ended one career and launched another. Surgeons told him the injury was a result of the way he threw the ball. So, he left MLB and used some bonus money to find an answer to the question, “Why do some pitchers get hurt faster than others?” After starting DVS (Delivery Value System) to help players throw the ball with a safer technique, he was recruited by Andy Appleby to work for United Shore Professional Baseball League. Proudest achievement: Orenduff cited Randy Dobnak, the first UPSBL veteran to play in the majors when he was called up by the Minnesota Twins in 2019, as “an example of what the league was set out to do.” “That was a true group effort. I say that because Randy was a college pitcher that had success but was overlooked. He was in our league for seven weeks, but we were able to get him built up enough in

that seven week period to where he was more marketable to, in this case, the Twins organization. He was the best pitcher at the time. I just remember sitting up in the press box before a game, and we found out he was going to be starting in a couple nights, and it was just such a sense of accomplishment not just for myself but everyone who made that possible. That kind of gave us validation as a whole.” Dobnak still pitches for the Twins. What’s next: “We’ve been able to prove that we can truly take a player from A to B. We can change the inputs of a player to affect the outputs from a performance side. We did that at the USPBL. We helped a lot with the Taylor kids that won the Little League World Series. We’re finding that Little Leagues are reaching out to us. They want to understand how it works. From the (USPBL) standpoint, we want to continue to grow our reach and help more players. We’d like to get another stadium. We’d like to grow that brand. Someday we want to be recognized by Major League Baseball as being a true development league.” — Kurt Nagl NOVEMBER 1, 2021 | CRAIN’S DETROIT BUSINESS | 19

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Shannon Smith Vice President | Siebert, Williams, Shank Capital Management, dba Clear Vision Impact Fund Age: 31 Career trajectory: Before Smith became vice president of a fund aimed at helping minority-owned businesses grow, based in New York and Detroit, he was a middle market banking associate for JPMorgan Chase & Co. from early 2019 until this summer, and before that a global philanthropy associate for the JPMorgan Chase & Co. Foundation. He previously served in the public sector as a Detroit City Council legislative assistant and community advocate and was a Detroit Public Schools Community District school board candidate in 2018. He has a bachelor’s in political science

and economics from the University of Michigan. Proudest achievement: Smith said he’s proud when he can show his mom he’s working to create change he wants to see in the world. “I think that’s something that’s really a proud moment for me, every time I’m able to show my mom that,” he said. What’s next: In Smith’s job, the fund is raising capital and looking across the country to identify companies owned by people of color to help scale and address lack of access to capital. More broadly, he said, “continuing to find ways through the cap-

ital markets, or even through policy, to continue to forge ahead on what my definition of equity is, and continuing to help my peers and our country understand that.” Words of wisdom: “I think I understood the power of just having a mentor, honestly,” he said. “That’s been very key as I’ve really figured out how to navigate my career ... There are people I look up to, I reach out to, I get feedback from that I’m very grateful for. I always seek to have that, it keeps me going and always reminds me that there’s more work to be done.” — Annalise Frank

Julie Schneider

Chanell Scott Contreras

Director, Housing and Revitalization Department | City of Detroit Age: 39 Career trajectory: Julie Schneider worked in fundraising for the Detroit Symphony Orchestra — “A skill that’s been useful in my time at the city of Detroit in ways I didn’t imagine in my mid-20s” — before her experience interacting with girls on the softball team she coached at Cass Tech High School led her to consider urban planning and public policy work as a way to help people improve their living situations following the foreclosure crisis. Schneider got two master’s degrees from the University of Michigan, took fellowships at the city and the U.S. Department of Housing and Urban Development, then came back to the city as a policy director in the department she now leads. She rose through the ranks on the strength of her work toward a multifamily affordable housing strategy, then successfully helped the city win a $30 million federal grant. She was named department director this year.

Executive Director | ProsperUs Detroit

Proudest achievement: The grant, from HUD’s Choice Neighborhoods Initiative, will lead to more than $1 billion in new investment in North Corktown, including hundreds of new affordable housing units. The project should include the addition of early childhood education and a community empowerment center. What’s next: Schneider has millions of dollars of federal stimulus money to leverage. “We’re trying to make sure we’re using these resources for the long-term benefit and stability

of our neighborhoods,” she said. “These are once-in-a-generation opportunities. It needs to last more than the current year, the current moment.” Words of wisdom: As a public servant, “It’s important to hear a multitude of voices and continue to move things forward,” she said. “It’s really important that you look at longterm success and don’t get stuck in short-term challenges, because there will be many.” — Arielle Kass

Eric Schwartz

Co-founder | Blue Conduit Associate Professor of Marketing | Stephen M. Ross School of Business, University of Michigan Age: 35 Career trajectory: After receiving his undergraduate degree in mathematics and Ph.D. in marketing from the University of Pennsylvania in 2008 and 2013, respectively, Schwartz packed his bags and moved west to Ann Arbor, where he was assistant professor of marketing from 2013 to 2020 and then became a tenured associate professor last year. After working in Flint with U-M students on lead issues in the water system, Blue Conduit — an AI startup that helps identify lead pipes — was officially founded in 2019. It has done work in Flint, Detroit, Benton Harbor and Toledo. Proudest achievement: Developing Blue Conduit, which has received grant funding from Google. org, the California-based Internet giant’s charitable arm; Troy-based The Kresge Foundation; and the

Age: 38 Career trajectory: After earning a Bachelor of Arts in Communications Studies and Sociology at the University of Michigan, Scott Contreras joined Mosaic Youth Theatre as a program administrator in 2005. She left after two years to launch Gussly.com, an online marketplace for fair-trade goods. The business hadn’t quite broken even by 2010 when it closed. Contreras went on to earn a Master of Public Administration from the City University of New York Baruch College through the National Urban Fellows program and moved into a fellowship at the Cleveland Foundation. There she worked on micro-financing initiatives for small business and served as a consultant with Evergreen Cooperatives, a network of worker-owned cooperatives launched by anchor institutions in Cleveland. She continued in that role through 2017, focusing on economic equity initiatives, including the Build Institute, which brought her back to Detroit. She joined ProsperUs, a subsidiary of Southwest Economic Solutions that supported entrepreneurs and small business. In March 2020, she was promoted to executive director from director of entrepreneurial initiatives. She oversaw the pro-

gram’s spinoff to an independent nonprofit last fall. Proudest achievement: Leading ProsperUs to secure certification as a community development financial institution, positioning it to secure more resources to support Detroit entrepreneurs. Current goal: To create more access to capital for small businesses through the creation of new loan products that help businesses build credit. Lesson learned: “Problems that arise in our work are often opportunities for us to grow. I’ve learned to embrace the challenging moments and use that as a tool for building my skills.” Words of wisdom: “If you are passionate about an issue or have a mission, get in there and do the work. Don’t be afraid of the challenging moments.” Surprising fact: Scott Contreras and her husband are frequent hikers — and foragers. “We’re really into identifying a lot of types of mushrooms, morels in particular. We haven’t really been successful. But it’s this persisting goal to find morel mushrooms and be able to harvest them and cook them.” What she does for fun: “When I can’t be out in nature, I am becoming an avid plant parent.” — Sherri Welch

New York City-based Rockefeller Foundation. Schwartz said Blue Conduit is expanding to “dozens of other cities” beyond Flint. The company has grown from no revenue and one employee in 2019 to just shy of $1 million in revenue this year and more than a dozen full-time employees, Schwartz said. What’s next: Getting Blue Conduit “in the hands of as many communities as possible,” Schwartz said. A second goal is developing a second line of business applying AI to other public health issues, such as tracking legionella bacteria in water, for example. Words of wisdom: “When you get that burning gut feeling that you should be doing something that you're not doing yet, you probably should do it,” Schwartz said. — Kirk Pinho

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SPONSORED CONTENT

CARING FOR KIDS Advocating for the health and wellbeing of children and their families

Advocating for the health & wellness of children and families

About this report: On this monthly radio program, The Children’s Foundation President and CEO Larry Burns talks to community, government and business leaders about issues related to children’s health and wellness. This hour-long show typically airs at 7 p.m. the fourth Tuesday of each month on WJR 760AM. Here’s a summary of the show that aired Oct. 26; listen to the entire episode, and archived episodes, at yourchildrensfoundation.org/caring-for-kids.

Praveen Thadani, President, Priority Health Larry Burns: What excites you about your role at Priority Health? Praveen Thadani: It’s a company I’ve had my eye on for a long time because of its reputation for innovation. Our teams are doing some fascinating work around transparency, personalization, digitization, but most importantly, on bringing value to our communities. In many cases, we’re deploying some of the latest technology, including predictive analytics, as an example. I think healthcare is so far removed from consumerism. It’s always fascinating to me that people enroll in their health plans, but then they take it for granted and they don’t really engage in their own health and well-being. The notion of getting our consumers actively engaged in healthcare and helping us — partnering with us — to make them healthier is I think what really excites me about Priority Health. Another thing that was attractive to me was the company’s commitment to the community. Priority Health is local, and healthcare absolutely should be local. Burns: What do you see in the foreseeable future for Priority Health? Thadani: We’re the fastest growing health plan in the state. I think our members are drawn to our dedication to innovation, the member experience, commitment to affordability, value, and transparency. One of the biggest areas that excites me is our movement towards value-based care which is aligning the mutual interests of both parties — the care delivered and the financier of healthcare. It puts the consumer at the center of everything that we do, and that pays off rich dividends in the form of a healthier community and making healthcare more affordable. This is a key component in allowing us to adopt more innovative care models. Priority Health was the first insurer in Michigan to deliver value-based care models beginning in 1997. Burns: Tell us about the philanthropic initiatives that Total Health Care Foundation — owned by Priority Health — is trying to achieve? Thadani: The intent is to distribute grants to organizations primarily in Southeast Michigan that are committed to social determinants of health and improving the health and well-being of the individuals that they serve. We’re grateful for the partnership of The Children’s Foundation to help us identify areas of need and work with organizations to ensure the funds are having the greatest impact in the marketplace. The operational support from The Children’s Foundation team also allows our foundation to operate more effectively and efficiently to invest more in the community. We’ve already issued more than $2 million in grants and we’re accepting applications for additional grant rounds. Some of these organizations include Alternatives for Girls, which helps homeless and high-risk young women avoid violence, teen pregnancy and exploitation and Brilliant Detroit, which operates as a neighborhood hub serving families with young children. We also support CATCH, which is dedicated to improving the quality of life for pediatric patients and their families, Cass Community Social Services, which provides initiatives for low-income Detroit residents, and Hope Clinic, which offers healthcare services for those without insurance. Lorem ipsum

Robert Kolt, President and CEO, Kolt Communications and Chair, the Michigan Community Services Commission Larry Burns: Tell us about the Michigan Community Services Commission.

Host Larry Burns, President and CEO, The Children’s Foundation

Diane Banks, Director, Advancing Macomb Larry Burns: Tell us about the current initiatives you’re working on now.

There are so many heroes out there, and if people go to www.miheroesproject.org, they can nominate a hero. Volunteer service should be recognized and celebrated. Let me tell you the woman that I’d nominate —she’s an 81-year-old nurse who kept her license. She volunteers at the local school to give vaccinations three days a week. She says, “I have the time, I have the skills, why wouldn’t I do it?” We want to celebrate those stories.

Diane Banks: Advancing Macomb is Macomb County’s conduit for collaborative community solutions. Our initiatives focus on addressing challenges in our communities by providing the philanthropic model and leadership to cement partnerships between nonprofit, public and private sectors; identify and attract resources and funds for projects and programs; and bring increased visibility to Macomb County. We’ve used this strategy for many community initiatives over the last couple of years, particularly in Mount Clemens, our county seat. We’ve formed a coalition of nonprofit grassroots leaders, along with local government leaders and businesses to identify projects that can have highimpact quality of life improvements in the city. We’ve worked on projects like public art murals in the downtown area. We’ve also helped bring increased access to youth sports through a regional coalition called SportPort to provide equipment to youth and increase access to youth sports. We fundraised for a new play fountain at an underutilized park in Mount Clemens. We help cities identify those projects, and then attract those resources and convene the right people together to make it happen.

Burns: Are these heroes all over the state?

Burns: What are some of the long-term goals?

Kolt: All over the state of Michigan, in every corner, people are contributing their service. There are heroes who volunteer their time and service in Detroit, Grand Rapids, Lansing, Alpena…

Banks: We’re just getting started. We have business leaders that are dedicated to our mission and want to give back to Macomb County. We’re continuing to build those relationships in the community and identifying where the greatest needs are. We’re working in that way and continuing to be a backbone for a collaboration.

Robert Kolt: The Community Service Commission is the state’s lead agency on volunteer service. We consist of all the “corps” organizations such as AmeriCorps, Senior Corps, Climate Corps and other programs that are funded federally through the Michigan Community Service Commission. Many of those projects and programs involve kids. We’re trying to create a culture and future for kids that teaches the value of volunteer service. One of the things that we do is disaster relief, like helping people in Detroit whose basements have flooded.

Burns: How have The Children’s Foundation and the Michigan Community Services Commission partnered together? Kolt: We have worked together in the past in different ways. Recently we formalized a partnership in having The Foundation hold the many funds that we gather, and people donate to the Community Service Commission — it’s a commission fund. Burns: How has COVID affected your organization? Kolt: We’ve worked things out with COVID and other complications and created some responsive strategies that have been very successful. Many of our AmeriCorps members have come in and have had an assignment — literacy or community service. They flip the script and they find out the best way to work things out. Burns: Tell us about Kolt Communications. Kolt: The area we are concerned about is good communication. Sometimes so many good things are going on and we don’t have a communication strategy for it. At my company, we help a lot of municipalities, school districts, airports, our own Chamber of Commerce in Lansing and others statewide. I also teach at Michigan State University. I’ve been there 29 years. Public relations is one class I teach, and I teach about 300 students each term. It is so satisfying to be in touch with kids who took your class. I had one student who took my class when she was pregnant and later, her son became a student. So, he sat through the class twice!

Burns: What communities in Macomb County do you want to be involved in? Banks: There’s such a difference between communities when you look throughout the county. We’re focused on communities that have goals for improving quality of life, but they just don’t have access to the resources — to the donors or to philanthropic funds. These include communities like Mount Clemens, Roseville, Eastpointe and Clinton Township. We encourage them to think about Advancing Macomb as a partner, especially on these types of placemaking projects, quality of life and connecting with nonprofit organizations. Burns: What are some of the ways people can get involved? Banks: I would encourage any nonprofits, business leaders or individuals who want to give back to Macomb County to reach out to us directly. You can call our office line at (586) 651-0055 or email Diane@advancingmacomb.com. You can check out our website, www.advancingmacomb.com and sign up for our newsletter or follow us on social media. We’re happy to find ways to help you get involved with any of these projects, initiatives, or nonprofit organizations that we help. Burns: What else do you want us to know about your organization or Macomb County? Banks: Our organization is continuing to grow and reach more partners, not just in Macomb County, but across the region and the state, so that we can advance not only Macomb County, but Michigan as well.

NOVEMBER 1, 2021 | CRAIN’S DETROIT BUSINESS | 21

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Jeff Ponders Principal, Portfolio Success | Invest Detroit Ventures Age: 38 Career trajectory: A native Detroiter hailing from a family of entrepreneurs, and a jazz saxophonist to boot, Ponders works every day with startups to increase their odds of success. Ponders joined early-stage investment fund Invest Detroit Ventures earlier this year to work on the success of the fund’s portfolio companies, after three years as an entrepreneur-in-residence at TechTown in Wayne State. “My career has really been about, ‘How can I help people make their dreams come true?’” said Ponders. “Especially if I’m making their dreams come true when it comes to economic empowerment and entrepreneurship.” Ponders is also a co-founder of the Commune Angels angel investing group in Detroit. Proudest achievement: “I think my proudest achievement has been taking ownership of my path, and … being open to opportunity, but more importantly, being intentional and seeking opportunities

that allow me to live my purpose and my passion. And bridging really distinct interests to make it my career, not just some career. Like, the idea of retirement doesn’t make sense to me because I’ve literally built a life where I do the things that I love and that I believe I was designed to do.” Music career: Ponders said he began playing the jazz saxophone in elementary school, and he now plays regularly at venues around the region, including Baker’s Keyboard Lounge, Cliff Bell’s, and the Dirty Dog Jazz Cafe in Grosse Pointe Farms. There’s a direct connection between Ponders’ day job as an entrepreneur and business coach and being a jazz musician, he said. “As a professional, and critically, as an entrepreneur, nothing ever goes the way you expect it to,” said Ponders. “Jazz is the exact same thing. You start playing and whether something goes bad or it goes incredibly well, you’re partially met with the unexpected opportunities.” — Nick Manes

Marc Swanson

Principal and Bankruptcy and Insolvency Group Leader | Miller Canfield

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Age: 39 Career trajectory: Swanson joined Miller Canfield in 2007 just after graduating from the University of Minnesota’s law school. More than 14 years later, Swanson now leads the Detroit-based law firm’s seven-attorney bankruptcy team. His largest clients include auto suppliers that need out-of-court debt restructuring and big banks like Comerica Inc. and Flagstar Bancorp Inc. that need representation as creditors in Chapter 11 business bankruptcies. For the past seven years, Swanson has represented the city of Detroit in the post-confirmation stage of its historic bankruptcy, working to settle hundreds of claims from unsecured creditors that weren’t hashed out during the 2013-2014 bankruptcy. Earlier this year, Miller Canfield’s partners tapped Swanson to lead the firm’s bankruptcy and corporate restructuring practice. Proudest achievement: Swanson successfully defended the city of Detroit’s bankruptcy debt-cutting plan before the 6th Circuit Court of

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Appeals and U.S. Supreme Court. Swanson also defended the Detroit Water and Sewerage Department in the 6th Circuit in a bankruptcy-era lawsuit over residential water shutoffs for unpaid bills. What’s next: Until being promoted to bankruptcy group leader, Swanson had been focused on his own metrics — billable hours, revenue and originating new clients. Now he’s focused on boosting those met-

rics for each member of his team at Miller Canfield. Lesson learned as an attorney: “Most of the time, you’re given a problem and it doesn’t look great on the surface. But if you really dig into it, most of the time — not all of the time — but most of the time you’re able to come up with a solution and help a client out. I think it’s one thing I’ve learned over time.” — Chad Livengood

Gennie Snow

Group Chief Strategy Officer | Detroit Medical Center Chief Strategy Officer | DMC Harper University Hospital, DMC Hutzel Women’s Hospital, DMC Detroit Receiving Hospital

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Age: 39 Career trajectory: Jacqueline (Gennie) Snow graduated with a master’s in health policy and management from Harvard University and quickly shot up the ranks at Chicago health care advisory firm The Chartis Group, eventually advising health care executives on strategy and implementation as an engagement manager. In 2018, she was hired by Detroit Medical Center as its chief strategy officer and promoted in 2020 to its group chief strategy officer, leading the system’s implementation of initiatives. Proudest achievement: In the early days of the pandemic, “when we were trying to learn how to fly the plane in the air, when the clinicians and oper-

ators were on the front lines, I served in the command center to develop processes and protocols to treat that surge while simultaneously trying to minimize impact to care for nonCOVID patients.” Snow worked with DMC’s CEO and corporate leadership to roll out protocols for non-COVID care that balanced the needs of hospital staff. “During the second wave, as the economic fallout remained acute, I led the development of the DMC’s annual strategic plan to set priorities for the year ahead. I worked through the uncertainty and formulated a plan that prioritized key service lines and adopted tactics to facilitate the DMC’s swift return to pre-2020 patient volumes.”

What’s next: “My current plan is accelerate the momentum DMC has right now,” Snow said. “We have prioritized a lot of high acuity service lines for all of the primary services of our hospital. I am assessing ... how we are engaging the community and encouraging patients to come back for treatment. Frankly, a lot of patients are still not returning for the care they need and my goal is to help our team reach them.” Surprising fact: “If I weren’t in health care, I would have gone to culinary school to be a chef. ... Instead I am an enthusiastic home cook and often cook to destress. My best meal is my lamb stew. Ask my colleagues.” — Dustin Walsh

“AS A PROFESSIONAL, AND CRITICALLY, AS AN ENTREPRENEUR, NOTHING EVER GOES THE WAY YOU EXPECT IT TO. JAZZ IS THE EXACT SAME THING. YOU START PLAYING AND WHETHER SOMETHING GOES BAD OR IT GOES INCREDIBLY WELL, YOU’RE PARTIALLY MET WITH THE UNEXPECTED OPPORTUNITIES.” 22 | CRAIN’S DETROIT BUSINESS | NOVEMBER 1, 2021

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Alex Purdy

Michael Tomey

Director of Business Operations, Enterprise Connectivity | Ford Motor Co.

Founder and Owner | Tomey Group LLC

Age: 36 Career trajectory: Purdy grew up on a farm near Calgary, where he learned how machines could improve productivity and quality of life. He started his career in investment banking in oil and gas before a short stint in government advising Canada’s minister of environment. From there he took a job with John Deere as head of John Deere Labs, focused on AI in farm equipment, and director of precision agriculture strategy and business development. In May 2020, he joined Ford in a new role born out of a company reorganization led by then COO Jim Farley, who became CEO in October 2020. Purdy is tasked with developing and implementing a suite of connectivity solutions for vehicles as the automaker vies for a piece of the industry’s high-tech, EV future. Proudest achievement: “My proudest personal achievement is having two kids and a family. We’ve just had our second child. As for my career, there are several. First, standing up a whole new business and skill team at Ford remotely during COVID and

Age: 32 Career trajectory: Michael Tomey does a little bit of everything. Tomey founded Tomey Group LLC in 2003 with his family when they purchased their first Jimmy John’s franchise. The business has grown to include 50 Jimmy John’s locations. In the last few years he has added to his portfolio credit card processing company Bravo Payment Systems, 4 Detroiters Liquor LLC (8 Mile Vodka), apparel line Born in Detroit and Highland Road Plaza in White Lake. “I don’t like having all my eggs in one basket,” said Tomey, whose Jimmy John’s franchises this year will bring in $27.8 million. “I want to have my hand in a bit of everything because I know not everything I can do can be a smashing success, so my goal is to continue to grow and diversify my job portfolio.” Tomey has a bachelor’s degree in business administration from Eastern Michigan University. Quick thinker: The pandemic has left Tomey’s Jimmy John’s stores with a hole in an important area: delivery drivers. Tomey contracted with an undisclosed valet company that was looking to get its staff some work, as restaurants and hotels did not use valet services for stretches in 2020. “We found a way to pay the valet company to pay their drivers to deliver sandwiches,” Tomey said. “We’re still doing it now, even though things have gotten a little better with us offering signing bonuses and referral bonuses.”

building a culture around connected services. In my first year at Ford, I met six people in person. Second, the customer feedback we are hearing about our connected offerings: Mustang Mach E’s (user interface) and its ability to be updated over the air, (and) telematics and prognostics for our commercial customers. Finally, launching important partnerships like Alexa, Google — and more — to improve customer value.”

What’s next: “My focus right now is transitioning the company to fully software-defined vehicles and helping our customers get more out of their businesses and their lives through new, truly differentiated products and services.” Words of wisdom: “Surround yourself with driven, curious people and work together to solve big problems you find interesting.” — Kurt Nagl

Gretchen Valade Director of Sustainability | Carhartt Age: 32 Career trajectory: Gretchen Valade has worked for the family business since before she could drive — “all holidays and summers,” she said — but she never imagined herself working there forever. She was planning to pursue a fashion career and worked in retail in Chicago and New York before moving to Hong Kong to work at the global supply-chain company Li & Fung. There, she studied supply chains in India and China and got to know different apparel manufacturing processes. She eventually moved back to New York, where she planned to stay, but in 2014, she came to town to see family and “fell in love with Detroit,” she said. “I super spontaneously moved home.” She has since worked at Carhartt

in various roles from consumer insights to e-commerce and merchandising to community engagement before taking on her current role leading sustainability in 2020. “I realized that I just like functional apparel better. It was less trendy, it was a slower market. You could really hone in and understand a style. Fashion has like 20 seasons. Carhartt has two to four.” Proudest achievement: Opening the Carhartt Workshop in April 2020, which activated the second-floor space above Carhartt’s retail location in Detroit as a community workshop space and tool library. She also opened her own boutique last year, Eugenie, selling ethically produced clothing, accessories, fine jewelry and home goods. What’s next: Valade sees opportu-

nity to continue to build out sustainability efforts at Carhartt and in fashion more broadly. “There’s a lot to do there, at every brand,” she said. “It really is industry-led because there really aren’t many rules and regulations.” Words of wisdom: Valade, who is on the board of the Detroit-based Industrial Sewing and Innovation Center and the Nature Conservancy’s Michigan board of trustees, said joining boards helped her get connected when she moved back to Detroit. “Say yes to everything,” she said. “I’m very introverted and very shy, but I joined boards where I knew no one at all. It’s intimidating, but everyone is there to meet people with similar interests and support the community.” — Amy Elliott Bragg

Words of wisdom: Tomey, with 530 employees under his watch, said risk taking is a major part of being a successful entrepreneur. “With Jimmy John’s, we doubled our stake in that company overnight,” Tomey said. “We purchased 27 stores from what was the largest franchisee in the company. It was a scary thought of how we’d manage it all. We took a risk and it’s paying off. When I purchased the vodka and apparel brands in 2020, I knew those would be things that take a lot of work. You can’t be afraid to take risks. You have to take those leaps, I think, if you want to be successful.” — Jay Davis

Diana (Mager) Walsh Chief Client Development & Marketing Officer | Honigman LLP Age: 39 Career trajectory: Walsh graduated from Michigan State University’s College of Law in 2008 as major law firms were laying off attorneys en masse during the Great Recession. After a couple of years of scrounging for hourly client work in Chicago, Walsh moved into the business side of a law firm — and thrived. She became a business development manager at Brinks Gilson and Lione in 2010 before taking on a bigger role in global business development a year later at Baker & McKenzie LLP in Chicago. In 2013, Walsh moved to New York City to become a global client relationship manager for White & Case LLP, where she was assigned to work with the firm’s biggest financial sector clients. In late 2017, Walsh came home to Michigan to work for Honigman LLP as the Detroit-based firm’s director of client development. In

January of this year, Honigman’s partners promoted her to chief client development and marketing officer, overseeing a team of 10 employees that is expected to grow. Proudest achievement: Working her way up into upper management of a law firm by focusing on the “bigger picture” of winning new business, while also formulating strategies for partners in the firm to better market themselves while retaining existing clients. What’s next: Continue to advance the firm’s growth strategies through new client services, client-management initiatives, lateral hires and growth in national markets. Words of advice: “The best business development at a law firm is the clients you already have. I’m probably in the position I’m in because I think through the lens of everything is a business.” — Chad Livengood

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PEOPLE ON THE MOVE

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MANUFACTURING

To place your listing, visit www.crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com ADVERTISING / MARKETING

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MVP Collaborative

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Phoenix Innovate

MVP Collaborative, a global Top 100 Event Agency, is pleased to announce Steve Honingford’s promotion to VP Business Development. An industry veteran, Steve has held nearly every role associated with the design, development and execution of large, complex business meetings and events across the US and Puerto Rico. From pharma to manufacturing to high-tech, Steve has led and produced programs for various industries in his 25-year career across multiple markets, platforms, and languages.

Monica Martinez has joined Michigan Legislative Consultants (MLC), bringing with her 20 years of experience in state government and consulting. Her executive and legislative branch roles included Michigan Public Service Commissioner from 2005-2011, where she helped craft and implement the state’s first renewable energy standard. She joins MLC from Ruben Strategy Group, a firm she started where she advised clients in the energy, technology, and non-profit sectors.

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SOFTWARE / SERVICES

DeepHow Corp. AUTOMOTIVE

Sagola division of Elcometer The Sagola division of Elcometer Inc, a leading manufacturer of high-quality inspection, spray, and blast equipment, has appointed Ed McCormack as North American Automotive Paint & Body Shop Segment Commercial Manager. Ed joins Sagola with over 28 years’ experience in the automotive industry, having spent a considerable part of his career working for DuPont and Axalta with positions held in their Manufacturing, OEM and Refinishing divisions. Elcometer acquired Sagola in 2020.

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EDUCATION

Teach For America Detroit Teach For America Detroit’s new Senior Managing Director of External Affairs, Michael Griffie, brings a wealth of experience across education, legal, and government affairs to this role. His experience also includes serving as a liaison to connect organizations to all levels of government. Prior to TFA Detroit, Griffie served as an attorney at Butzel Long and then as a lobbyist at Michigan Legislative Consultants, after spending a decade in education as a charter school principal. TFA Detroit recruits and develops high-performing educators who commit to supporting the academic and personal growth of students in under-resourced communities, shaping the trajectory of their lives and careers. Visit tfadetroit.org/ fellowships to learn more.

DeepHow has appointed Steven Correnti as SVP of Sales across all global channels. Correnti will operate out of DeepHow’s Boston office, reporting to DeepHow CEO Sam Zheng. Designed for the manufacturing, field service, construction, and equipment maintenance sectors, DeepHow streamlines the capture and transfer of technical skills and know-how; compressing project time ten-fold, boosting worker performance by 25 percent, and dramatically reducing overall training and development costs.

Livonia-based Masco is adjusting prices across its business in response to increased costs for raw materials and shipping. | MASCO.COM

Masco: Paint prices to rise due to soaring costs Supply chain, raw materials issues hurt profits BY KURT NAGL

Masco Corp. is benefiting from continued strong demand for its paint and plumbing products, but supply chain kinks and rising raw material costs are hurting profitability. Part of the solution, according to executives of the Livonia-based manufacturer, is passing on costs to customers. That means do-it-yourselfers should probably expect to pay more for Behr paint at Home Depot, for example. The strategy was laid out last week by CEO Keith Allman and CFO John Sznewajs during the company’s third quarter earnings presentation. The company reported third-quarter revenue of $2.2 billion, up 11 percent from last year, while its operating profit of $385 million fell from the $425 million it took in the same time last year. “Demand for our products and home renovation remains strong and at a much higher level than experienced in 2019,” Allman said on the call with investors. The company’s fifth straight quarter of double-digit sales growth was fueled by a strong performance from its Behr Pro paint segment, which saw sales increase 45 percent year over year. Executives said the rollout of a new product, Behr Dynasty, also helped. The pandemic proved to be a revenue boon for the company as home

renovations and DIY projects became wildly popular. The company’s revenue was 28 percent higher than in the third quarter of 2019, and its operating profit was 29 percent higher. Paint is the primary part of Masco’s decorative architectural products division, which had a 4 percent revenue increase to $875 million. Its other main division, plumbing products, saw revenue increase 16 percent to $1.33 billion. Profits were dragged down by high commodity and logistics costs — two of the largest issues companies have grappled with in the wake of the pandemic. Shipping container prices have soared to unprecedented levels in the past year. That’s had a big impact on the bottom line at Masco, which imported about $600 million in products from China in 2019, Crain’s reported last year. “Like everyone else that’s reported so far this earnings season, we’ve faced supply chain challenges, you know, coming across the Pacific,” Sznewajs said. “The good news is even though we’ve experienced some of that, we have also as a result passed through some of the price increase, not only because of the raw material inflation but because of some of the logistics inflation that we’ve experienced.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

DEALS&DETAILS ` CONTRACTS TECHNOLOGY

Cepton Technologies, Inc. Cepton Technologies, Inc., an innovative provider of automotive lidar solutions, has welcomed Brunno Moretti as Vice President of Product Marketing. Based in Cepton’s Detroit office, Moretti will oversee the company’s ongoing product development to drive business growth across automotive and smart infrastructure markets.

`Amsted Automotive, Southfield, an automotive supplier, has formed a joint venture with Anhui HOFO Mechanical and Electrical Co. Ltd., Bengbu, Anhui Province, China, an automotive A/C clutch manufacturer. The new venture is called BN-HOFO Material Technology Ltd., or BN-HOFO. BN-HOFO joins resources of Amsted Automotive’s Burgess-Norton business unit, Geneva, Ill., with HOFO’s in-country manufacturing and technology base. Website: amsted.com `BIN: Black Information Network, New York, N.Y., a radio network owned by iHeartMedia, San Antonio, Texas, and Real Times Media, Detroit, a holding company focused on media, marketing, and content for urban audiences, has a partnership. Under the deal, iHeartMedia will source and distribute news stories from RTM publications

across BIN radio stations and sites, and RTM will source and distribute BIN news, entertainment and sports stories and place BIN’s audio widget, a source of 24/7 audio coverage, on its digital properties. Websites: BINNews.com, realtimesmedia.com

`EXPANSIONS `Keystone Insurers Group, Northumberland, Pa., an insurance group, has signed Conner Insurance Group, Walled Lake, an insurance agency, to its Michigan agencies. Websites: keystoneinsgrp.com, connerinsgrp.com `Infrastructure Engineering of Michigan LLC, an engineering firm, has opened at 3031 West Grand Blvd. Suite 530, Detroit. With this new location, Chicago-based IEI will focus on delivering civil and structural design and construction engineering services. Website: infra-eng.com

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CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

SOLAR

From Page 3

DTE Energy Co. (NYSE: DTE) and Consumers Energy Co. (NYSE: CMS) have launched a full-scale public education and lobbying campaign in Lansing to stop out-of-state solar developers from breaking into Michigan’s energy supply market. “Consumers and DTE want to educate you that they agree with the concept of community solar as long as they own it,” said Jim Murray, a former AT&T Michigan president who is now Midwest policy director for the Coalition for Community Solar Access, a trade group for small-scale solar energy developers. Murray is lobbying for legislation that would let electricity customers invest in community-level solar parks that produce fewer than five megawatts of electricity and receive a credit on their monthly utility bill. The House Energy Committee held a hearing last week on House Bills 4715 and 4716. Solar developers told lawmakers they’re seeking a small sliver of what’s expected to be a growth industry in energy production to meet a 2025 goal of 35 percent of energy coming from a combination of renewables and energy waste reduction. “We’re not putting them out of business,” Murray said. “Any break in the monopoly is something they don’t like.” But executives at DTE and Consumers argue new players in the solar power business would not have to play by the same rules that they do, causing the cost of capital construction of small solar parks to get backed into the bills of their entire electric customer base. “While this legislation looks to provide options for solar access, it does not prioritize affordability and reliability,” said Sarah Nielsen, executive director of renewables, transportation and storage at Consumers Energy. Currently, both utility companies run voluntary programs that allow residential customers and large-scale industrial consumers such as Gener-

al Motors Co. to pay a premium for electricity sourced from renewables. Those voluntary surcharges, such as DTE’s MiGreen Energy program, are used to fiMurray nance new solar and wind energy projects as governed by the Michigan Public Service Commission. Electricity from solar in Michigan still makes up a tiny portion of the state’s renewable energy sources. In 2019, solar power accounted for 1 percent of Michigan’s renewable energy credits, a measurement that takes into account electricity from renewable sources and energy waste reduction, according to the Michigan Public Service Commission’s annual report on renewable energy. Michigan’s 2016 energy law requires regulated utility companies to source 15 percent of their electricity from renewable sources or by reducing energy waste by the end of this year. About 5 percent of Detroit-based DTE Energy’s renewable energy comes from solar, accounting for 65 megawatts. By year’s end, DTE’s new 79-megawatt Assembly Solar park in Shiawassee County will begin drawing power from the sun, company spokeswoman Cindy Hecht said. Consumers Energy is already in the small-scale community solar business. The Jackson-based utility has 3-megawatt and 1-megawatt solar “gardens” on the campuses of Grand Valley State University and Western Michigan University, respectively, and an even smaller solar array in Cadillac that produces 500 kilowatt-hours of electricity. Pending full regulatory approval, Consumers Energy plans to add 1,100 megawatts of solar-generated electric capacity between 2022 and 2024 through the construction of a series of larger-scale solar farms across the state, company spokeswoman Katie Carey said. The community solar legislation would make an end-run around DTE

and Consumers’ renewable energy programs, letting a customer invest directly in solar power and get a credit on their monthly bill from the two utility companies. DTE and Consumers would likely have to pay more to buy the energy from community solar developers. A recent Michigan State University study found small-scale community solar costs $1.73 per watt to install. DTE says its solar parks are costing $1.10 per watt of electricity to construct. Chuck Conlen, vice president of renewable energy for DTE, said the proposed community solar credits, as written in the bills, would “subvert” Michigan’s existing energy laws that require the cost of producing energy to be spread evenly among customers. “Unregulated entities want a regulated credit to offer unregulated products that don’t have any longterm reliability obligations, consumer protections or regulatory oversight to ensure customers get what they paid for,” Nielsen told members of the House Energy Committee. Contrary to Nielsen’s testimony, the legislation does require the MPSC to set rules for the financing and construction of community solar facilities connected to the electric grid and to ensure customers get monthly bill credits for that energy production. House Bill 4716 also calls for utility regulators to create a mechanism for low-income households and low-income service organizations to buy solar energy produced by small-scale community solar parks.

Democratizing the grid At last week’s hearing, lawmakers heard testimony in favor of the bills from a longtime Capitol lobbyist who helps the big utility companies garner public support for renewable energy projects, particularly wind farms that have been resisted in some rural parts of the state. Ed Rivet, executive director of the Michigan Conservative Energy Forum, said large-scale wind and solar farms in rural farm fields in Michigan

may be cheaper to build, but it doesn’t account for higher transmission costs to populous areas that need the power during peak hours of the day. Rivet, a former longtime lobbyist for Right to Life of Michigan, said the community solar model “democratizes the grid” to let customers buy into cleaner forms of energy, while getting a return on their investment. Under Consumers and DTE’s existing voluntary programs, “you sign up to pay extra on your bill for green energy, then they take that money for capital investment in solar, which the corporation and its shareholders receive a guaranteed investment,” Rivet said. “But that investment is not re-

turned to the customer,” Rivet said. “... So if we’re going to talk about where costs get shifted, let’s talk about all of them.” Rivet, who helps wind and solar developers gain municipal approvals for new projects, acknowledged it’s more cost effective to just let DTE and Consumers continue building large-scale solar farms in rural areas like Lapeer and Shiawassee counties without any additional competition in the energy market. “Yes, those will be cheaper,” he said. “But they won’t come in the places that this legislation is designed to put them.” Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

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CLASSIFIEDS To place your listing, contact Suzanne Janik at 313-446-0455 / sjanik@crain.com

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BLIGHT

and big and different,” Williams said, when in reality it doesn’t seem so different and back to “business as usual,” securing money for demolitions. She said she hasn’t seen funding assistance available to small organizations like hers. But she also said the demolition department has been present in communities and “diligent” about warning neighbors when homes are to come down.

From Page 1

From the city’s perspective, the goal with Proposal N was to change how the demolition program is run and earn back trust. The city created a new department to house its demolition activities, headed by LaJuan Counts, and brought the contracting process fully in-house. Those who previously handled a good chunk of the demo program, the Detroit Land Bank Authority and Detroit Building Authority, had faced investigation and scrutiny. “I think in the beginning (the challenge) was making the distinction that we were a new department,” Counts said. “We’re completely separate from the land bank. Our processes are intended to do things the right way and we listened to what was being said, we listened to all the concerns that came out of the community as well as City Council ... we built our department around trying to fix all of those issues.” Counts told Crain’s that she can see why there’s been a lot of mistrust in the city’s demolition program, but the process is different now. “I understood why people felt the way that they felt, and I felt it was necessary for us to make sure that we did exactly what we said we were going to do,” she said, adding that the department has worked to make itself available to residents who call out mistakes or have concerns. Counts said the Proposal N plan is “moving as we had scheduled” and more demolitions are starting as a two-month abatement period end. The program has a $164.6 million budget for the current fiscal year, which ends July 1. The demolition department had contracted out 2,962 homes for demolition as of October, according to its most recent monthly newsletter. The first tear-downs started in late March. Some 692 houses have been torn down as of Thursday. Another 212 have been stabilized — or cleared out with clear polycarbonate installed to cover windows and doors — to go to auction for sale through the land bank, which is a customer of the city. More than $53 million in demolition and stabilization work has been contracted out so far. The land bank, which already sells properties through an auction, rehab program and direct sales, also does the work of identifying the list of homes to be demolished or secured under Proposal N. So far the demolition department has turned over 180 homes to the land bank for sale, said Jamie Furst, assistant director of inventory for the DLBA. As of Oct. 19, the land bank had 73 properties scheduled to go up for auction through the beginning of November. Some 50 properties have gone up for auction and 41 have sold, according to the land bank, at an average price of $9,300. The land bank has been listing around one Proposal N home per day, but aims to ramp up to four per day. In the past, demolition program contractors have been penalized over contaminated and mishandled dirt, and the city and land bank over air quality violations. Plus the federal investigation brought guilty pleas for bid-rigging. One contractor, Adamo Group, was suspended for tearing down the wrong houses. There has been some disciplinary action under Proposal N, though Counts said it hasn’t “imposed any noticeable delays” and that any issues are thoroughly documented to help catch potential bad actors. In one instance, on Sept. 9, Detroit-based Inner City Contracting LLC demolished the wrong home. Both

Taking matters into their own hands

A crew from Detroit government contractor Inner City Contracting LLC demolishes a home at 13144 Maiden St. under the city’s bond-funded, $250 million Proposal N initiative. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

LaJuan Counts to lead the new demolition department the city created to oversee its updated tear-down program created to carry out Proposal N. | CITY OF DETROIT FLICKR

Alan Stirling (left) and Desmond White plan to either renovate or dismantle a vacant home at 12040 Rossiter St. in Detroit’s Moross-Morang neighborhood. Stirling is buying the house off the city’s demolition list. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

properties were in the demolition pipeline and owned by the land bank. Inner City couldn’t tell which house was the one to be razed so a Detroit inspector placed a red placard, but it was put between two properties and “understandably” the contractor tore down the one next door, a spokeswoman said. The city found Inner City wasn’t at fault, so the company wasn’t reprimanded. Another contractor, Juniors Jrs. Construction LLC, has been suspended for 183 days for missing service milestones and getting five letters of discipline. Juniors also got a stop work order because it had 13 holes at demolition sites that needed to be filled. It has done that and will be allowed to finish its existing contracted work, according to Counts. DMC Consultants also got a stop work order for using unapproved soil to fill two properties, and Detroit Next and Rickman Enterprise Group have also missed performance milestones. Proposal N contractor Moss Co. was also told to halt demolition work while it was going through an ownership dispute but has since been allowed to continue.

Version 2.0 The mostly bond-funded, five-year Proposal N strategy extends Mayor

Mike Duggan’s mission of ridding the city of vacant properties. It’s been a huge plank for Duggan, who’s vying for a third term in Tuesday’s election. Proposal N is still early in its run, but it will likely be used to measure the mayor’s performance. Duggan’s administration tore down more than 20,000 abandoned homes starting in 2014, in the years leading up to Proposal N’s passage, but $265 million in federal funding ran out so Proposal N was created to continue the effort. It’s an updated iteration of Duggan’s original 2019 bond proposal, amended in an attempt to address City Council concerns about equity, a focus on demolition over saving buildings and transparency. The administration also agreed to a City Council resolution listing an array of commitments across city departments, including to hire small Detroit-based contractors, conduct more neighborhood planning efforts to solve the vacant land problem once demolitions occur and work with community groups. Some goals have been met, exceeded or are on track so far: 30 of 39 demolition contracts and all 23 contracts for cleaning out salvageable houses have gone to small or micro businesses; 36 and 23, respectively, are Detroit-based and around half are Black-owned. Detroit is also in the “pre-planning

stages” of a framework plan for a new sector of the city’s Strategic Neighborhood Fund areas, said Katy Trudeau, deputy director of Detroit’s Planning and Development Department. The city chose a sector around the Midwest neighborhood specifically to address vacant land there because it’s a major Proposal N demolition target, Trudeau said. Other commitments meant to address concerns about a lack of housing market support for the financing needed to privately renovate the secured homes haven’t been met. City Council wanted the city to, for example, “evaluate and recommend” discount programs but new ones haven’t been officially considered. In its quarterly Proposal N report, the city points to existing land bank discounts for Detroit educators and city employees. Another commitment, implementing a “Rehab Academy,” hasn’t been started due to lack of funding. The city did develop a home rehabilitation pilot program to be implemented with community development organizations, but the CDOs involved “pursued alternative funding sources,” according to the report. Lisa Williams, a director of New Beginnings CDC in the Moross-Morang neighborhood on the city’s east side, said she’s been attending community meetings, asking questions and hearing about the process. But the past can’t be erased. She said she’s been disappointed that the land bank, which she said has been “dysfunctional,” has continued to be so involved in the decision-making process. “Proposal N came along and it was proposed to be something glamorous

New Beginnings is among community groups that have been contending with blight for years and are wondering what to do in relation to the city’s demolition and preservation work as it benefits, or fails to benefit, their neighborhoods. A 700-square-foot bungalow just off Moross Road, a block from Carleton Elementary School, has sat vacant for the last decade or so. The home at 12040 Rossiter St. with white siding and a small concrete stoop sits between two occupied houses on the street where Alan Stirling lives in a house his parents bought when he was 2. He’s 78 now. Originally, Williams wanted New Beginnings to pay for the land bankowned house, saving it from its fate on the city’s demolition list and doing its part to stop the spread of vacant, unused land. She was frustrated with the city’s processes and decided not to sink money into it. The city was going to pay to tear down the structure, and if that happened, New Beginnings could get the vacant lot for $100. But buying the house before demolition would have cost $1,000. Over the last month, teardowns cost an average of just more than $20,000 per property, according to city records. “It just doesn’t make sense to me ... if you have the money, why you wouldn’t use those same dollars to support organizations who want to not tear down the houses?” Williams said. In Stirling’s case, however, his frustration drew him to the house like a magnet. “He is really adamant, he’s like, ‘They’re taking too long, they’re going to take two years with the process they’re doing, and I want it either fixed or down,’” Williams said. Stirling is paying New Beginnings $1,000 to acquire the home for him through the land bank’s community partner program. The deal is expected to close before year’s end. Stirling has long had concerns about transparency in the demo program, as well as its progress after watching while it took a year and a half each for a dilapidated house and another burned-out house on his street to come down. Now he’s looking to do it himself. The structural ironworker by trade plans to either renovate the house or dismantle it and salvage the lumber. He’s hiring a company called RAGS LLC started by 19-year-old Desmond White and some friends. Stirling and White plan to use the project as a training ground for RAGS, which hasn’t completed a full house renovation before. Stirling then wants to either sell the finished product for $40,000 or rent it out for around $500 per month. “What they’ve done is they’ve left blighted properties scattered through this area for 15 years,” he said. “Meanwhile, it drives all our other properties’ (values) down ... If we can buy it, own it, clear the problem, apologize later, so be it.” Contact: afrank@crain.com; (313) 446-0416; @annalise_frank

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MAYOR

From Page 1

heavily favored to win a third term Tuesday against challenger and former deputy mayor Anthony Adams. Duggan won 72 percent of the vote in the primary to Adams’ 10 percent, and has done no public campaign appearances while refusing to debate Adams. “This hasn’t been much of a campaign; the mayor hasn’t broken a sweat,” political adviser and consultant Adolph Mongo said. City Council will see substantial turnover this year with a widening federal investigation over Detroit’s towing industry, as two of the nine of-

fice-holders resigned while pleading guilty to criminal charges and two others decided not to run again. Going into the election that’s likely to see turnout of less than a quarter of Detroit’s voters, business and civic leaders see a crossroads for the city that has suffered through 19 months of a deadly pandemic. COVID-19 has claimed the lives of more than 2,400 Detroiters so far and the city’s unemployment rate, which saw astounding highs estimated at 45 percent around the pandemic’s height, is recovering. Crain’s surveyed a selection of these leaders about what should be the mayor and City Council’s priorities in 2022, regardless of the election’s outcome.

Chris Rizik, CEO and fund manager of Renaissance Venture Capital Rizik, who works closely with startups in Detroit and Ann Arbor, sees opportunity for the city to further champion tech innovation. More public dollars could be put to use helping early-stage companies be prepared “for rapid growth,” he said. Other cities around the state have been able to help form tech ecosystems with readily available seasoned entrepreneurs around to offer advice. But that’s proven more elusive in Detroit. “The city needs to increase the resources aimed at identifying, mentoring and providing seed capital to promising entrepreneurs, particularly entrepreneurs of color,” said Rizik, who declined to put a specific dollar amount to such an effort. “To create an intentional infrastructure to prime them for growth — something that Ann Arbor and, to a certain extent, Grand Rapids, have done organically.”

MoGo Executive Director Adriel Thornton Thornton believes more of an emphasis should be placed on the greening of Detroit. The Detroiter, who has been with the nonprofit on-demand bike system for nearly five years, said “greening” the city could happen in a variety of ways, including more bike lanes and developing more transportation for residents and visitors to get around without a car. “It could be expanding the literal greenness of Detroit, with trees and green space, or maybe it could be accelerating the nonmotorized transportation plan,” said Thornton, who declined to disclose who he’s supporting. “I think the administration has to realize how this is an economic driver. There are studies that show that, especially for small businesses, that people on bikes and pedestrians tend to spend at a 3 to 1 rate at local businesses vs. people in cars. On a bike, or walking, you’re able to see the businesses and you’re able to easily access them.”

Michigan Minority Contractors Association Executive Director Jason Cole Whoever wins the election, the Detroit-based nonprofit representing and advocating for minority-owned companies wants to see change. Cole, who endorsed Duggan in 2013, has pivoted to endorse Adams this time around. He says he hasn’t seen the administration take significant action to help Black-owned businesses that work with or want to work with the city. He and his membership want to see three things: An economic disparity study that shows who does and doesn’t get a “seat at the table” on government contracts that can do wonders to help a business grow; a prompt payment ordinance to ensure contractors and subcontractors don’t wait for their money; and not charging Black-owned companies to get certified as a minority business with the government. “I thought we were going to get some headway in 2018, 2019, pre-COVID, and that just did not happen, for whatever reason,” Cole said. “Anthony Adams speaks more to my community’s needs and concerns so that’s why he got our endorsement.” Contracting is especially important in the coming years, Cole said, regardless of who wins, with Detroit how to spend historic federal aid. Supporting minority contractors is important for wealth-building and employment, key issues in a city that’s continued to see population decline, Cole added. Detroit’s population dropped 10.5 percent in the 2020 Census, though Duggan has pledged to challenge it. “One of the things Mike (Duggan) stood on was, ‘I should be getting elected if we have population gain,’” Cole said. “He does not purport that anymore.”

Frederick Paul II | SYLVIA JARRUS/SPECIAL TO CRAIN’S DETROIT BUSINESS

Fahrenheit 313 owner Frederick Paul II Paul owns sneaker boutique Fahrenheit 313 on Livernois on the city’s Avenue of Fashion since March 2020. He said district business liaisons establishing and maintaining rapport with owners is vital as are the vitality of programs such as Motor City Match and TechTown Detroit. “There are a ton of resources available for small business owners, whether you’re just getting started or looking to expand,” said Paul, who received $25,000 from Motor City Match and a $5,000 TechTown Retail Bootcamp Pitch Showcase award. “I think those programs and organizations should be prioritized because they need funding to remain sustainable, too. Those programs are huge for the small business economy in the city.”

Mark Wallace, president and CEO of Detroit Riverfront Conservancy One way to continue building community is developing more shared outdoor spaces throughout the city, Wallace said. “The city has tremendous momentum in this direction,” he said. Wallace said the nearly complete riverwalk, the development of Ralph C.Wilson Jr. Centennial Park and the build-out of the 26-mile Joe Louis Greenway bicycle and pedestrian path connecting neighborhoods with the riverfront are evidence of that momentum. Detroit’s next mayor and City Council need to make development of inclusive and equitable public spaces a continued priority, Wallace said. “Primarily because it’s important for people to have a sense of community and being in shared physical space is the best way to support and build that community,” said Wallace, a Detroiter who donated to Duggan’s re-election campaign.

Dave Meador, vice chairman and chief administrative officer of DTE Energy Co. Meador is a close Duggan ally in Detroit’s corporate community, serving as co-chair of the mayor’s workforce development board. If Duggan is elected to a third term, Meador wants to see the mayor wield his influence outside of Detroit to move the needle on some of the state’s more vexing public policy issues. Meador points to the Democratic mayor’s success in getting the Republican-controlled Legislature to pass sweeping changes to no-fault auto insurance in 2019 that were aimed at making it more affordable

for Detroiters. “I don’t want to give him an assignment list, but it’d be great if we could take on regional transit and move that forward,” Meador said. “And there might even be statewide things that he can help us with that really needs his leadership and his tenacity.” In 2015, after the city emerged from bankruptcy, Duggan’s revived Detroit Workforce Development Board set a goal of creating 100,000 new jobs in the city. Prior to the COVID-19 pandemic first hitting Michigan in March 2020, Detroit

had created 20,000 of those jobs, most of which were wiped away in the early days of the health crisis. “We’re almost back to where we were pre-COVID,” Meador said. “We really need to work hard here in terms of economic development, jobs and focusing on technical training to qualify people for the jobs, because many of the jobs are shifting from college degrees to high school-plus certifications.” Before the pandemic, Duggan had scored two big wins with automakers. Stellantis, formerly Fiat Chrysler Automobiles, invested $1.6 billion into a new Jeep assembly plant on

the city’s east side. More than 4,000 Detroiters so far have accepted conditional job offers through a program that let city residents apply first. Duggan also helped convince General Motors Co. to retool its Detroit-Hamtramck plant into an all-electric vehicle assembly plant. In a third term, Meador wants to see Duggan continue focusing on rebuilding the city’s manufacturing base to create jobs that Detroiters without college degrees can get into. “Take what we were doing (before the pandemic), but we’re going to have to do it on steroids,” he said.

Lisa Johanon, housing director, Central Detroit Christian Community Development Corp. Johanon said she wants the next mayor to prioritize affordable housing for low-income families. “That’s our main battle,” she said. “We’re not there yet, and there’s such a great need.” Also on her list: more streamlined city services. Johanon said it feels like everything takes twice as long as it needs to.

Eastside Community Network president and CEO Donna Givens Davidson “I think we have got to center the needs of average Detroit residents in the governance of the city,” Givens Davidson said. “I know that right now living in the city is really difficult for people who are lowto moderate-income. They can’t find affordable, quality housing in the city.” She cited a University of Michigan study that reported nearly 38,000 households are living in homes that are inadequate. Duggan debuted a federally funded program called Renew Detroit to repair 500 homes per year, but she said it’s not enough. “The one thing I can say about the mayor is when the mayor has said he wants something done, he functions with a single-minded focus ... but there has not been a single-minded focus on adequate housing for low-income people,” she said. — Jay Davis, Nick Manes and Arielle Kass contributed to this report. NOVEMBER 1, 2021 | CRAIN’S DETROIT BUSINESS | 27

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BKV GROUP

Target’s new small-format store in Detroit is expected to take 32,000 square feet in the development generally referred to as South of Mack Avenue.

TARGET

From Page 3

Property tax abatements totaling $6.39 million over more than a decade through a Neighborhood Enterprise Zone are requested but not yet approved, and a brownfield incentive request is also expected for what city documents say is $6.53 million. He proposes a 350-unit project on about 2.4 acres of the Nyman site, with a 15-story apartment tower with about 270 apartments, a six-story building with about 80 units, and the retail space, totaling about 40,000 square feet, when adding in a bank branch and restaurant/cafe space to the planned Target store. But the Target — known for affordable home goods, general merchandise and grocery options — would shake up the retail scene in Midtown, where there are plenty of small, independent shops offering a variety of products, perhaps in some unexpected ways. “They will exert a lot of pressure,” said Kees Janeway, a Detroit retail expert who is managing partner of Detroit-based Iconic Real Estate. “If people are shopping in Midtown for home goods, nobody is gonna beat

more small shop retail.” Jim Bieri, a longtime Detroit retail broker who is principal of Stokas Bieri Real Estate, says the neighborhood can support a mix of national and international tenants, as well as small, local shops. “There are plenty of businesses you can have that don’t compete against those guys,” Bieri said.

The attraction The tens of thousands of Wayne State University students and staff and employees and visitors to the Detroit Medical Center are among the core shoppers expected at the Target, although it’s likely to be a magnet for others. Think College for Creative Studies students. Henry Ford Health System. “This particular store location, I think they wanted association with Wayne State, with students, and this particular location, they can also take advantage of the medical centers,” Bieri said. “It’s far enough away from downtown and the stadiums to allow the center to be shopped at all times.” But also think longtime residents of nearby neighborhoods, and even some farther away. The list goes on.

“I THINK THE CHALLENGE IS BEING ABLE TO COUNT THE INCOMES. THEY’RE COUNTING ROOFTOPS AND THEY’RE SAYING, ‘WHAT ARE THE DEMOGRAPHICS OF THE AREA?’ BRUSH PARK IS ONE OF THE STRONGER ONES IN TERMS OF CONCENTRATED INCOME LEVELS.” — Clifford Brown, Detroit developer

their prices. But the big, mass-market retailers — they all look at each other’s sales and they all talk behind closed doors. If Whole Foods and Target are all far exceeding pro formas, maybe you can get West Elm or bigger brands to come into the city. That, after it’s all occurred, might pave the way for

“Their target has always been on Woodward between MLK (Martin Luther King Jr. Boulevard/Mack Avenue) and Warren (Avenue),” said Ben Rosenzweig, a retail broker who works extensively in Detroit as vice president in the local office of Colliers International Inc. “The reason for that is

because their customer is not a downtown office user. Their customer is somebody who lives in an apartment and needs to grab paper towels or a toilet brush. So they want to be around families, as well as the college students at Wayne State and CCS.” Sue Mosey, executive director of Midtown Detroit Inc., one of the project’s supporters, said during a Detroit City Council Planning and Economic Development standing committee meeting Thursday that she anticipates people from other neighborhoods to be key patrons. “It will help bring a lot of other basic services to the entire area surrounding the whole greater downtown,” she told committee members during public comment. “I would hope a lot of neighborhood folks would come and use this Target as well. It just fills in a really important, key corner that has long just sat vacant. It’s a major bus route there. It’s a transit route. It’s a really important site to density. We promised the Brush Park neighborhood residents when we worked on that parking deck over there that we would not just leave a parking deck with not a lot of density built around it, and this is a project that really delivers that for everyone in that zone.”

Rooftops and spending According to data from CoStar Group Inc., a Washington, D.C.based real estate information service, there are 9,383 households within a one-mile radius of the proposed store, 24,906 within two miles and 41,432 within three miles. Total consumer spending within those distances are $154.6 million, $449.2 million and $756.5 million, CoStar says. That includes spending on clothing; entertainment, hobbies and pets; food and alcohol; household supplies; transportation and maintenance; health care; and education and child care. That’s substantially higher than, say, the demographics immediately surrounding the Novi Target at 27100

Mosey

Bieri

Wixom Road, according to CoStar data. Within a mile of that store, total spending is $50.5 million, while within two miles it’s $147 million and within three miles it’s $455.5 million. Excluding transportation and maintenance, health care and education and child care, households within one mile spent $103.2 million, households within two miles spent $301 million and within three miles they spent $510.1 million. And excluding those costs in Novi, it’s $32.4 million within one mile, $92.1 million within two miles and $287.3 million within three miles. By 2026, consumer spending excluding transportation and maintenance, health care and education and child care is expected to total $548.8 million within three miles of the Detroit store. For Novi? Comparatively, just $311.3 million. In addition, according to CoStar data, daytime workforce population within one mile of the Detroit store is 39,881, within two miles it’s 124,823 and within three miles it’s 140,668.

Shrinking footprints The small-format Target is the second large retailer recently compressing its typical footprint to put an outpost in the greater downtown area. In early October, Walker, Mich.based Meijer Inc.’s Rivertown Market store at 1475 E. Jefferson Ave. between Rivard and Riopelle streets opened in about 42,000 square feet, a fraction of the 180,000-square-footplus footprints that the retailer typi-

cally occupies with its supercenters in Detroit as well as the suburbs. Meijer has two such stores in the city: One at Eight Mile Road and Woodward Avenue next to the former Michigan State Fairgrounds site that has a new 3.8 million-square-foot Amazon.com Inc. distribution facility rising on it, and another at Grand River Avenue and McNichols on the city’s northwest side. Target had a full-size store at 8500 E. Eight Mile Road at Van Dyke Avenue that opened in October 1987 and closed in August 2003. It has not had a presence in the city since. Full-sized Target stores, which run around 130,000 square feet, are typically in so-called “power centers:” In general, a 250,000-square-foot to 600,000-square-foot open-air retail development anchored by up to three major retailers, like Target or others. According to the International Council on Shopping Centers, power centers average about 439,000 square feet and typically sit on 25 to 80 acres. Although the city has a lot of vacant land, assembling that much land along a heavily traveled road and situated in population centers needed to sustain a shopping center like that is much more difficult. “The challenge in terms of Detroit is not about getting the spending,” said Clifford Brown, a Detroit developer who has co-developed The Scott at Brush Park apartment complex on Woodward and is also a member of the Brush Park Community Development Corp. board. “I think the challenge is being able to count the incomes. They’re counting rooftops and they’re saying, ‘What are the demographics of the area?’ Brush Park is one of the stronger ones in terms of concentrated income levels. They’re not going to go to a different place that doesn’t have the same amount of income.” Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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PARTIES

From Page 3

Before the pandemic, 25 staff members celebrated the successes of the year with bowling. Now that there are more than 100 employees and four retail locations, the scale will be somewhat bigger. “We are big believers in the idea of holiday parties to continue that positive energy and motivation for the team and rewarding them for their hard work,” Frakes said. “It’s a huge part of our business model.” One thing is sure: Though Rair’s business is cannabis, it won’t be incorporating the product into its party. Allowing open consumption at a commercial site requires state licensing. Frakes also said the company doesn’t want to promote driving while under the influence. Kristen Johnson, the owner of Fresh Chef Detroit, said she thinks people are starting to relax as it relates to the pandemic. The Royal Oak caterer said she still hasn’t decided what jobs to take, but is getting between five and 10 requests each week to cook for holiday events — a huge increase from the norm. “More people are getting vaccinated,” she said. “I think last year people were mostly trying to do things outside.” That was the case for the literacy nonprofit Beyond Basics, which held a drive-through event in 2020 for the Durfee Family Literacy Center. Pam Good, co-founder and CEO of Beyond Basics, said the annual party is an opportunity to share experienc-

UWM’s 2019 holiday party featured musical act The Chainsmokers and a giveaway for employees of 13 Cadillacs and 30 cruise trips The details of this year’s soirée haven’t been made public. | COURTESY OF UWM

es and successes each year. She plans two events — one for employees and one for the community. Both will be in person, but Good said she plans to stay flexible and adapt plans as necessary to navigate the continued effects of COVID-19. Flexibility is still the name of the game in a lot of ways. Auburn Hillsbased BorgWarner Inc. doesn’t yet have plans for this year. But last year, the company held an employee-organized virtual event with a raffle supporting the United Way of Southeastern Michigan, spokeswoman Michelle Collins said in an email. “This virtual raffle was so successful last year that I’m sure if there is a decision to host a virtual event this year, we will most certainly be doing

that again,” she said. Other companies are still waffling, even though venues typically would already be booked. Beaumont Health head of communications Mark Geary said the company is “still evaluating our options and have not made any decisions at this time.” Continental AG, whose North America HQ is in Auburn Hills, said it is still considering plans. And the Detroit Institute of Arts said it typically holds a party in January to celebrate its employees. It hasn’t yet made a decision on whether it will hold one in January 2022, executive director of marketing and communications Christine Kloostra said. With all the hesitancy among corporate leaders, Jon Coutts, managing

director for a pair of Detroit-based developer The Roxbury Group’s hotels, said business gatherings remain down since 2019. “We’re seeing very little demand,” said Coutts, who runs the Aloft Detroit at The David Whitney Building and the Element Detroit at the Metropolitan Building hotels, both downtown. As such, Coutts said there’s still time to book small meetings and other events before the holidays. In 2019, there were five “decent events” booked at the Element as well as “many smaller events,” Coutts said. Holiday event business is down some 80 percent from that time, he said, although overall event business has been picking up.

“We had some things on the books that were tentative that didn’t come through,” he said. “They said they were still very concerned about specific COVID protocol and social distancing, just having concerns about a large gathering.” George Hill, chairman and CEO of Detroit-based Diversified Chemical Technologies Inc., understands those concerns. He said leadership for the specialty chemical and adhesives manufacturer has scheduled a holiday party, but hasn’t yet decided if it will happen — and so hasn’t announced it yet to employees. Hill said he may put out a survey to employees to gauge their interest in such an event. “We are in what I would call the twilight zone,” Hill said. “It’s really trying to gauge the appetite for what people really want to do with their spare time, on a social basis.” The company has 100 employees and none are working in the office on a full-time basis, Hill said. There just wasn’t the appetite for it. Past parties have taken place at Lumen by Beacon Park, Traffic Jam and Snug in Midtown and the nowclosed Signature Grill along the riverfront. They have featured food, a DJ and dancing. “It’s a party. I mean we’ve always made it a very festive occasion,” he said, adding that he’d love to host it this year to give a morale boost, but “we’re still on the fence.” Staff writers Annalise Frank, Dustin P. Walsh, Jay Davis, Kirk Pinho, Kurt Nagl, Nick Manes and Sherri Welch contributed to this story.

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THE CONVERSATION

John Rakolta Jr. on Mideast peace, Walbridge and Michigan’s future WALBRIDGE: John Rakolta Jr., chairman of the Detroit-based construction giant Walbridge, has long been a vocal leader in Michigan’s business community, taking public stands on policy issues, particularly on education and workforce development. But for much of the past four years, Rakolta was largely out of the metro Detroit limelight while awaiting confirmation as and then serving as U.S. ambassador to the United Arab Emirates. But since President Donald Trump left office and Rakolta was recalled back to the states, he has resumed his role as chairman of Walbridge, while his son, John “JR” Rakolta III, assumes the role of president and his longtime right-hand man, Mike Haller, remains CEO. Rakolta’s daughter, Lauren, is president and CEO of DFM Solutions, a facilities management subsidiary. Crain’s Senior Editor Chad Livengood recently spoke with Rakolta about his experience as an ambassador and what’s new in his business world. This partial transcript has been edited for length and clarity. | BY CHAD LIVENGOOD `You were absent from the U.S. for a while as ambassador to the UAE. Talk first about that and your experience being an employee of the State Department under the Trump administration. It was, quite frankly, a phenomenal experience and one that I wish more Americans really understood — the role of an ambassador. The legal authority and responsibility that you have is unsurpassed. You are actually the in-country representative for the president of the United States and, in many respects, have the same authority that he might. The UAE was right in the middle of a very, very volatile region and happens to be a very, very good ally of the United States. There were numerous issues and problems that I got the opportunity to sit right there, ring side, participate in and made some great progress in terms of peace in the Middle East.

DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

` As you lived out this experience as an ambassador, what’s something you learned about our country that you just didn’t know from your — I’m not sure how old you are — but 60-some years on earth? I really saw two things. No. 1, America, despite all of the negative aspects you hear back in the United States about how we’re perceived on the world stage, we’re admired, revered and everybody wants to be like America. That was a surprise. I had gone out there somewhat thinking that I would receive a lot of criticism. The second thing that I saw was the talent in the State Department, especially in my embassy. The people, the workers, are just phenomenal — their vision, their hard work, their commitment to our country. I didn’t see the deep swamp anywhere in my embassy. In fact, I was so impressed with my direct reports, I would say I would hire any one of them if they ever left the State Department, that’s how talented they were. The problem we have has to

John Rakolta Jr., chairman, Walbridge

do within the State Department. It was designed in the ’50s during a period when communications were much slower. You had months, if not years, to make decisions on things. The world doesn’t operate that way today. And all of these wonderful U.S. employees are unable to use their innovation, their ideas, to take a little bit of risk because the system is designed to be slow — and we need to change that. ` You’re back as chairman of Walbridge. Talk a little bit about your business and the state of construction right now, particularly in heavy industry. We are very, very fortunate to be participating in the second Industrial Revolution today. The electrification of the auto industry is full bore. We have more work than probably we can

handle, but we love it. There also are other industries that are expanding greatly that we are big players in — data storage for companies like Microsoft and Amazon Web Services, smart intelligent warehousing. All of these areas are capturing enormous amounts of capital, and we’re the beneficiary of building all of these new facilities. We’re also going through a transition from a second generation to a third generation. Lauren and JR are doing a fantastic job of relieving me of my day-to-day responsibilities, although I do keep a firm hand on the overall guidance of the company. ` In terms of electrification, what are some the areas that you see that the auto industry hasn’t quite caught up with yet? There are two fundamental big issues

that need resolution. One is charging on a national basis. Are we going to have a network capable of charging cars? There’s something like 180,000 (gas) filing stations around the country. There’s only a couple thousand charging stations, and that prevents people from going long distances. That charging network is a very, very big issue that needs to be solved. The other is battery capacity. What’s going to be the limit that we can ultimately reach and how fast can we get to it? Those are the two things that need to catch up. There are a lot of bets being placed right now that those solutions are on the horizon and that we’re going to be able, as a country, to commit the capital we need in order to develop that infrastructure. `Any thoughts about what we do, from a public policy standpoint, on labor and trying to get more people back into the workforce? Our education policy here in the state of Michigan is nearing a crisis mode. ... We’re going to be 200,000-300,000 new jobs short in the next four or five years. ...The bottom line is that the whole state needs to get reformed right now. ... I wonder what will it take to galvanize the public. Right now we’re 39th in eighth-grade reading, 33rd in fourth-grade math ... we’re in the bottom quartile. Without those kind of skills, businesses aren’t going to come here. They’re going to go to the states where they can hire and put to work the kind skilled labor that they need. This is what worries me a lot that we just don’t have that crisis. I’ve been racking my brain, how do you create that crisis to galvanize liberals, conservatives, suburbanites, urbanites, rural? How do we pull them all together that we can make Michigan a Top 10 state? We are a long, long ways from there. ... Walbridge today has three electric car company customers: Rivian, Lucid and Nikola. Not one of them ever gave a thought of building their plant here in Michigan.

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RUMBLINGS

Vinnie Johnson shutters office furniture company Airea DETROIT PISTONS GREAT Vinnie Johnson is winding down his Southfield-based office furniture business. The decision was made earlier this month to shutter Airea Inc., which is one of the companies in Johnson’s Piston Group LLC holding company. Johnson confirmed Airea’s pending closure in a statement Tuesday morning to Crain’s. “We made the strategic decision to cease operations for Airea,” the statement reads. “The decision was announced on October 6, 2021, and we expect operations to be wound

down by the end of the year. This decision is a result of an increased focus on our core competency in manufacturing and our level of commitment to inJohnson crease business opportunities within the automotive industry and other market sectors.” The company declined to answer follow-up questions about the decision and its implication for employ-

ees, among others. It reported in 2019 that it had 27 employees in metro Detroit. Airea, which has its office in the Southfield Town Center high-rise complex off the Lodge Freeway, ranked seventh on Crain’s List of largest Michigan office furniture dealers in 2018, the most recent ranking available. In 2019, it reported $18 million in revenue, down from $23 million in 2018. Melissa Price took over as the company’s president effective July 1, 2020, replacing Dave Kiwior, Crain’s reported at the time.

Piston Group, the largest Blackowned automotive supplier in the U.S., has been involved in a legal battle since 2020 with the Detroit-based Michigan Minority Supplier Development Council, which in February stripped Johnson’s nearly $3 billion company of its minority-business enterprise, or MBE, status. Johnson sued the development council in May to regain the MBE status. Earlier this month, the MMSDC countersued Johnson, alleging breach of contract and defamation.

Chairman Keith E. Crain Vice Chairman Mary Kay Crain CEO KC Crain Senior Executive Vice President Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except no issues on 1/4/21, 7/5/21 nor 12/27/21, combined issues on 5/24/21 and 5/31/21, 11/15/21 and 11/22/21, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2021 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

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