Crain's Detroit Business, December 4, 2023 by Crain's Detroit Business

CRAINSDETROIT.COM I DECEMBER 4, 2023

Celebrity cannabis market blooming From Willie Nelson to Mike Tyson, big names draw weed buyers By Dustin Walsh

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in average lease square footage. “The pandemic has changed the way we work,” said Brendan George, a senior vice president focused on tenant representation in the Southfield office of Dallas-based commercial real estate giant CBRE Inc.

What’s in a name? An aging hippie from Texas hill country and mainstay in the “Outlaw Country” music synonymous with weed culture is, perhaps to no surprise, a growing cannabis brand name in Michigan. Willie’s Reserve, a marijuana licensing company started by singer and songwriter Willie Nelson in 2015, is among the latest celebrity brands to grace Michigan dispensaries — when they can keep it on the shelves. Green Stem, a dispensary in Niles in Southwest Michigan, sold out of its first shipment in October of Willie’s Reserve — nearly 32 ounces of flower and 160 joints — in less than 36 hours. “People have started to have it with celebrity brands,” said Katie Lindgren, brand director at Green Stem. “If the product isn’t good or doesn’t stand up in the culture … weed people, all weed people — soccer moms, teachers, just about anybody that consumes cannabis regularly — can tell who is a poser. If they aren’t picking up the vibe, that brand doesn’t last.” Celebrity brands come and go in the cannabis space just like in

THE INCREDIBLE

SHRINKING LEASE

As hybrid work becomes the standard, tenants find they need less office space | By Kirk Pinho

The average office lease size has plunged over the course of the COVID-19 pandemic that began in early 2020 — another sign of a real estate sector struggling to recalibrate as hybrid work continues to persist. According to data from CoStar Group Inc., a Washington, D.C.-based real estate informa-

tion service, through Nov. 20 the average signed lease size was just 3,360 square feet this year, the lowest since 2012 and nearly 31% off the high during that period of 4,852 square feet in 2015. That means that the leases being signed are producing less rent for landlords and smaller commissions for office brokers,

who typically take a cut that is based on the total value of the lease over the course of its term. Rents have increased a tad over the course of the pandemic to $21.67 per square foot per year, up from $21.23 per square foot per year in the first quarter of 2020, but that slight bump likely doesn’t offset the decrease

BEST-MANAGED NONPROFITS

Crain’s annual program honors the best in leadership and financial stewardship in Southeast Michigan’s nonprofit community. I PAGE 8

QUITE A FIND Rare Chinese statue found in Macomb County garage sells for nearly $1 million at auction. PAGE 3

REAL ESTATE A judge signs off on new ownership for the Detroit Office Plaza complex. PAGE 4

Biz sometimes must come first for family biz execs By Jay Davis

When it comes to running a family-owned business, family can’t always come first. Belle Tire president Don Barnes III says everyone in and around a family business must have a shared goal for the business to sustain success. “If we keep our North Star as doing what’s best for Belle Tire, we’ll do fine,” said Barnes, a 2022 Crain’s 40 Under 40 honoree. “As soon as you make the business about the family first, everybody else suffers. We’re just stewards in the business. Just being in this position is humbling. The decisions you make affect a lot of people, and making the right decision is hard. You have to do what’s best for Belle Tire before you do what’s best for the family.” Family businesses have unique circumstances and face challenges that other kinds of companies don’t. Often, that means that explaining tough decisions — to family members, customers and employees — can be difficult. A panel of businesspeople shared their perspectives on the topic Nov. 16 at Crain’s 2023 Family Business Summit at the Daxton Hotel in Birmingham. Gino Roncelli, president and CEO of Sterling Heights-based Roncelli Inc. construction, said that balancing building a legacy with getting

Crain’s Detroit Business Executive Editor Mickey Ciokajlo, left, talks with Belle Tire President Don Barnes III, Roncelli Inc. construction President and CEO Gino Roncelli and Tomey Group LLC CEO and owner Anthony Tomey during the 2023 Crain’s Family Business Summit at the Daxton Hotel in Birmingham. | BRETT MOUNTAIN

business done is never easy. “The bigger a business gets, the more changes. At a certain point, it’s easy to think doing what’s best for the family is most important because that business can be your legacy,” said Roncelli, who was named CEO of his family’s business in June. “Explaining to your mother, brother or shareholders that everything has to be about the business can be hard. It gets very hard to do right by both the business and your family.” Having an outside influence can ease those pains. Jodie Kaufman Davis, executive vice president of global insurance

firm H.W. Kaufman Group, in a talk with Crain Communications President and CEO KC Crain, said having outside voices to facilitate family conversations helps keep a level of balance within the 54-year-old company. Kaufman Davis is a part of a third generation, along with her brother Daniel, helping to run the company with their father, Chairman and CEO Alan Jay Kaufman. Their grandfather, Herbert Kaufman, started the company in 1969. Barnes, whose 101-year-old tireshop chain has nearly 200 locations, said having an unbiased opinion

can help ease family tensions and help some family members see different perspectives. “There was a point where we needed someone from the outside to come in,” Barnes said. “Usually that person has a wealth of experience and has seen a lot of different things. That external non-family member is most definitely going to put the business first, no matter what their relationship with the family is. That’s necessary at times.” What’s also necessary is establishing boundaries. Anthony Tomey, CEO and owner of Tomey Group LLC, said he sometimes questions whether he takes on too much of a load. Tomey runs the company with his sister, brother and uncle. Tomey Group owns and operates more than 50 Jimmy John’s locations. Their portfolio also includes a Chicken Guy! restaurant, the Born in Detroit apparel brand and 8 Mile Vodka. “I’m 24/7. Sometimes you have to ask yourself if you’re doing too much,” Tomey said. “But I want to be that guy. My sister has three kids, so she’s at home more. But there can be challenges on who’s carrying the weight. But at the same time, who better to do this with than your family? Whatever business you’re in with your family is your blood, sweat, and tears. There’s no one else I’d want to do this with.”

For Roncelli, changes had to be made after it became apparent too many people had a say in the construction firm’s direction. “We made the decision on who had voting rights within the company,” Roncelli said. “We made the decision to consolidate voting rights to one person. It was tough, but it was necessary.” All three executives agree it’s necessary to work up to executive-level positions — that ground-up knowledge of how the jobs in the company get done is critical. Barnes, Roncelli, and Tomey all started from the bottom with their respective firms. Each has worked in several capacities and learned the ins and outs of their family businesses, and said that has helped them develop into strong leaders. “This has been drilled into me since I was a kid,” Roncelli said. “I’m finally at a place with some respect. I’ve done a lot with the company. Being in the trenches helps you develop as a leader and it helps you prove that you can do it.” “Nothing prepares you for the role you’re in,” Barnes said. “I’ve done everything from sales to changing truck tires on I-94 in the winter. The biggest thing for me has been learning how the company runs and how everything’s connected. That helps you make better business decisions.”

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2 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

Troy mixed-use portfolio up for sale — again Developer also listed part of project in 2019 By Kirk Pinho

The bronze statue is thought to have been made in the 13th century. | DUMOUCHELLE ART GALLERIES

Rare Chinese statue sells for nearly $1M Gilded bronze sculpture had been in Macomb County garage for years By Sherri Welch

It’s not uncommon for people to bring items to Detroit auction house DuMouchelle Art Galleries Co. to be appraised. But it isn’t every day that someone brings in a rare early Chinese, gilded bronze Luohan statue of a Buddhist Arhat from the 13th century, said Bob DuMouchelle, general manager and auctioneer. That’s what happened in October when a Macomb County resident brought in the statue that had been sit-

ting in his garage for years. That statue brought nearly $930,000 at auction Oct. 20, setting a new auction record for bronzes of its subject and size this year, DuMouchelle said. It almost went in the dumpster, DuMouchelle said. But after some conversation, the owner kept it for a few years before bringing it recently to the auction house to get appraised, along with a moose head. “Unfortunately, we were unable to take in the moose head,” DuMouchelle said.

But the bronze statue was another matter altogether. DuMouchelle President Joe Walker was there when the pickup pulled in with the moose head and bronze sculpture. “When this rare bronze was brought in, we knew it was special. The craftsmanship of the hands and face, its heft, and the fine patina acquired over hundreds of years all pointed to it being a significant early piece,” he said in a news release. See STATUE on Page 15

A large mixed-use building portfolio in Troy has again hit the market for sale — well, kind of. This isn’t the first time Orlando-based Unicorp National Developments Inc. has tried to sell off components of its City Center project at West Big Beaver and Crooks roads. This time around, Unicorp is looking to unload the following for an undisclosed price: ◗ The 298,000-square-foot City Center office building at 888 W. Big Beaver Road at Crooks Road. The building’s key office tenants are Trion Solutions and SevenCo, while the building also includes the Red Effect and Melting Pot restaurants, according to The Jonna Group listings. ◗ The City Center Retail Collection, which is 62,400 square feet with 15 tenants. Tenants include Shake Shack, Kura Sushi, Fidelity Investments and others. ◗ The City Center Zen Apartments, which has 286 units that are 94 percent occupied. This is not the first time the City Center project has gone on the market. In January 2019, Unicorp listed the office building and retail space, plus rights to use a new 1,468-space parking deck for the office building, for a combined $107.5 million. The apartments were under construction at the time and not included in the listing, and this most recent listing does not make mention of the parking deck. The City Center office building had been in flux when Unicorp, run by Chuck Whittall, won an

Orlando-based Unicorp National Developments Inc. built the City Center Zen Apartments in Troy on what was formerly an office building’s surface parking lot. | COSTAR GROUP

online auction for it in 2016 with a high bid of $20 million. The building was auctioned off by Miami Beach, Fla.-based special servicer LNR Property Inc., which foreclosed on it about two years prior. It was about 41% occupied at the time. Whittall then proceeded to tear down an approximately 300-space parking garage on the site, which was originally built as the North American headquarters for Volk-

Unicorp won an online auction for the City Center office building in 2016. swagen, and build the new garage, apartments and retail on the 13-acre site. He estimated at the time that the project would cost about $130 million, although the actual final cost is not known. Emails were sent to both the brokerage firm, The Jonna Group in Birmingham, a division of the Royal Oak office of Toronto-based Colliers International Inc., and Whittall seeking additional details.

A bank-turned-boutique hotel draws a luxe clientele By Tom Henderson

When Jennifer and Jonathan Julien let it be known that they wanted to take a long-vacant, way-past-its-prime old bank building in downtown Houghton and turn it into the kind of upscale hotel people would be willing, even eager, to pay hundreds of dollars a night to stay in, most of the locals thought they were delusional. In downtown Houghton? What did the Juliens think this was? The East Bay in Traverse City? Or Mackinac Island? But they went ahead and bought it and did an expensive makeover. “When we opened in

2019, people were ‘They’re crazy. There’s no market for that in Houghton,’” said Jennifer. Now? Those naysayers have a hard time getting one of the 17 rooms there in the summer tourist season or the winter skiing and snowmobiling season because there aren’t usually any rooms available. The place is generally sold out. “There were a lot of naysayers. Everyone thought this would fail. Who’d have thought you could get $249 or $329 a night in Houghton,” said Eric Waara, Houghton’s city manager. Everyone, that is, but him. “Knowing what Jon and Jen had done over the years, you

knew what it could be. Honestly, you could see the potential,” he said. “They did their homework. They knew what they needed to do to make it special. It’s not lucky, it’s intentional. “They’ve helped elevate Houghton. You see a Bentley parked in downtown Houghton and know they’re staying at the Vault,” he said. This past summer, room rates ranged from $249 to $379 a night, the latter for a two-bedroom, two-bathroom suite. Jennifer said the hotel employed 16, most of them students at nearby Michigan Technological University. See HOTEL on Page 16

The Vault co-owner Jennifer Julien in a hotel room that incorporates the original bank building’s vault. | TOM HENDERSON DECEMBER 4, 2023 | CRAIN’S DETROIT BUSINESS | 3

REAL ESTATE INSIDER

Judge signs off on new ownership for office towers A Wayne County Circuit Court judge has approved the sale of the Detroit Office Plaza complex straddling the central business district and the Corktown neighborhood. A Nov. 2 order by Judge Annette Berry sets in motion an entity called PMN HoldKirk Pinho Partners ings Co. LLC to purchase the complex out of receivership from 1200 Sixth Street LLC, an entity tied to Samir and Mary Danou out of Bloomfield Hills. According to a source familiar with the matter, the working vision for the buildings includes converting at least part of one of them into a hotel with a national flag, and making the rest into residential and retail space. The precise scope of the plan — including things like the number of envisioned hotel rooms or apartments, for example — is not known. PMN Partners Holdings does not appear to be registered yet in Michigan, but court documents

say it is connected to Paul Stann, a Denver developer who declined comment. The proposed purchase price is $16.5 million, the documents say, and the buyer has deposited $50,000 toward the purchase price. According to the filings, Farbman Group, the Southfield-based receiver for the property, marketed it for sale and received 11 potential buyers, with five offers to purchase. Alfredo Casab, member for Bloomfield Hills-based Dawda, Mann, Mulcahy & Sadler PLC who is representing the Danous, said in an email: “On behalf of my client, I can say that while we are not privy to the buyer’s plans, we believe the future development of this property will bring positive things to the city of Detroit.” The Royal Oak office of Chicago-based JLL represented PMN Partners, the purchase agreement says. A spokesperson for Farbman Group said the property is under contract and undergoing due diligence but otherwise declined comment. Farbman Group was hired to

A Wayne County Circuit Court judge has signed off on the sale of the Detroit Office Plaza complex to a new ownership group. | COSTAR GROUP

oversee the office complex after 1200 Sixth Street defaulted on a $10.3 million loan from Orange County, Calif.-based lender M360 Advisors, according to Wayne County Circuit Court records. The circuit court complaint, filed in February, said that with interest and other fees, the total now owed on the 2017 loan was about $17.96 million. That includes principal of $14.93 million, which includes additional advances to the owners beyond the $10.3 million

loan, interest of $2.7 million, late fees of $170,200 and a forbearance fee of $150,000, the lawsuit said. The Danous bought the complex in May 2005 for just $6.3 million, or less than $10 per square foot. M360 and the Danous agreed to three forbearances on the loan, the complaint says. However, they missed a Jan. 31 loan repayment deadline and, a few days later, the complaint was filed. It also says the property is worth

less than what is owed and that it has not been maintained, with nonworking elevators, mechanical systems failures and water running in a stairwell. The complex has 613,000 square feet across an 11-story south tower and 21-story north tower sitting on about 2 acres plus three consecutive blocks of parking that can be built upon totaling about 8 acres once Abbott Street is vacated, a broker said last year. There is also a 13-story center core.

Ski resort takes upgrade plea to Consumers Energy public By David Eggert

A Northern Michigan ski resort is pleading with Consumers Energy Co. to upgrade old power lines, saying three outages over a fiveday span have hampered the operation’s ability to make snow needed to open. Caberfae Peaks, which is in South Branch Township west of Cadillac, is among the largest resorts in the state and one of the oldest in the country. It lost electricity twice within 12 hours Nov. 28 for non-weather reasons, prompting leaders to accuse the Jackson-based utility of not prioritizing a rural area and urge the resort’s 47,000 Facebook followers to file complaints with the Michigan Public Service Commission, which regulates utilities. Power has since been restored to Caberfae. The problem has been ongoing for 15 years and stems from “very old” lines that run four miles through the Manistee National Forest between a substation and the resort, Caberfae General Manager Pete Meyer said. Consumers, the state’s second-biggest electric utility behind DTE Energy Co., completed two phases of a five-stage upgrade plan — targeting the worst sections — but “stalled out on the other phases,” Meyer told Crain’s. 4 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

Caberfae Peaks is asking Consumers Energy to upgrade old power lines that are being blamed for outages affecting the resort’s ability to make snow. | CABERFAE PEAKS

“Those areas continue to deteriorate. The line is way undersized. Basically, we pull too much energy and put too much of a load on it, and it basically burns the lines in half.” A spokesperson for the Jackson-based utility apologized. “We apologize for the electric reliability issues Caberfae Peaks Ski Resort has experienced when conducting snow making operations early in the season,” Katie Carey said in a statement. “The circuit feeding Caberfae Peaks is in a

multi-year project to increase capacity and improve reliability. There have been two other sections of the upgrade that have been completed with more identified for future repairs.” The current issue, Carey said, requires “several long-term repairs needed to serve the resort and our team has identified those fixes, with work starting (Nov. 29). In the meantime, we will explore short-term actions that can improve reliability until this section of line can be replaced. We will

continue to remain in close con- for our employees,” said Meyer, tact with the resort throughout whose family has owned the resort since the early 1980s. “It’s hard for this issue.” Snowmaking, Meyer said, is the area. These homeowners are weather-dependent and crucial mad at us. They’re asking, ‘What is for Caberfae to be able to capital- the problem? What are you guys ize during low temperatures. The doing? Why are you causing these resort operated its pumps and outages?’ So the relationship with snow guns at reduced capacity the neighborhood is strained a litdue to fears over power reliability, tle bit as a result of this.” Caberfae is a big tourism draw he said. “If you look at the weather fore- for the Cadillac area. “It’s just a happy place for a lot cast up here now, all the next week is warm. Luckily we still were able of people,” he said. “People want to make enough snow I think to to be able to come here and recreget open,” he said. “But we’re go- ate, and we want to be able to proing to have not as much coverage vide that for them.” He credited the utility’s “great” as we would normally have, not being able to open as many lifts, lineworkers and “responsive” not as many runs. And our base is business account representatives not as thick. So if we go through a and engineers. “Their hands are tied. They arwarmup, we might lose what we have, whereas our competition is not dealing with these issues.” Outages harm pumps, motors and compressors — Caberfae General Manager Pete Meyer used to make snow, said Meyer, who declined to en’t the ones deciding where Consay how much the damage has sumers does their upgrades,” Meycost over the years. The issue is not er said, saying the Facebook post just about Caberfae, he said, but asking Consumers to “please lisalso nearby residents who are los- ten to us” was an attempt to reach ing electricity and experiencing others at the company “to let them know how much of a problem this damage to wells. “It’s a big deal for our business truly is and how bad these lines to stay in business. It’s a big deal truly are.”

“People want to be able to come here and recreate, and we want to be able to provide that for them.”

We hear you. And we’re here to help. All through 2023, we listened — to our clients, teammates and the many communities we serve. And truly hearing what they would like the power to do helped us strengthen our partnerships — and welcome new ones along the way. From couples just starting out to entrepreneurs looking to launch a business, together we accomplished a lot. We can’t wait to see what 2024 has in store. Matt Elliott President, Bank of America Detroit

Learn more at bankofamerica.com/detroit

What would you like the power to do?®

EDITORIAL

Kathy Wilbur’s life of service offers us lessons

DRE PHOTOGRAPHY

n outpouring of remembrance and grief stretching across the state of Michigan greeted word of the death of Kathy Wilbur at 70 years old on Nov. 26. Wilbur’s career in public service spanned state government and higher education, touching seemingly every part of public life in our state. And the tributes to her life, cut short by a recurrence of cancer, ran the gamut as well, cutting across parties and age groups. They praised her deep knowledge of the Lansing levers of power, her ability to connect people across the spectrum, her mentorship, especially to women leaders, and her personal touch across five decades in public service. Wilbur started in government life as a staffer in the office of state Sen. Bill Sederburg in the 1970s. From there, she held key jobs across public service. She was elected to the Michigan State University board of trustees for eight

Kathy Wilbur and her granddaughter Mary.

years, headed three state departments under Gov. John Engler, and spent 16 years as an executive at Central Michigan University, including a period as interim president. She was inducted into the Michigan Women’s Hall of Fame in 2007, but that was far from a capstone on her career. Wilbur had far more to offer. In 2018, Engler again tapped her as a key lieutenant after he assumed the interim president role at Michigan State as the school worked through fallout from the Larry Nassar sex abuse case. Wilbur stayed on as an important adviser through several more presidents at the university, announcing her retirement only in October amid her final bout with cancer. Former Gov. Jim Blanchard noted to Gongwer News Service: “Given all the dysfunctional issues there, she was a real rock of Gibraltar for MSU. I don’t know anyone who did more in recent years to hold the place together than Kathy Wilbur.”

She also was praised by some of Michigan’s most prominent advocates for effective government. “It’s hard to find anyone anywhere, especially in the world of people who care about good public policy, who did not think the world of Kathy,” said Eric Lupher, president of the Citizens Research Council of Michigan, whose board Wilbur chaired. In many ways, Wilbur set the example for how we want our politicians and public servants to treat each other and work together. Universally, tributes to her highlight how she was a person who could get things done by working with people from a variety of backgrounds and political stripes. In a time of partisan deadlock and pointless sniping, it’s a potent lesson plenty of people in political life ought to take to heart. But Wilbur’s life of service and connection is something to which we can all aspire.

COMMENTARY

A way to help parents — and boost the workforce

NIC ANTAYA

households are shut out nactment of the of benefits they are eligihistoric Working ble for by a confusing, Families Tax Credbureaucratic system of it was a triumph of bisafety net programs. partisanship, and it Our detailed analysis demonstrated the powof the benefit cliff found er to win big change of that households with cross-sector, cross-idechildren realized very litology coalitions. tle income gain as declinThis new tax credit — Lou Glazer (left) is the president ing benefits and increaswith support from Gov. of Michigan Future Inc. Paul ing taxes steeply offset Gretchen Whitmer, Hillegonds is a former Speaker increased earnings. This huge majorities of both of the Michigan House of Democrats and Repub- Representatives and a member of is particularly true for licans, and a coalition of the Michigan Future Inc. board of households with children with income between more than 200 organi- directors. $20,000 and $40,000, zations representing both the business community and the eq- where households net as little as 14 cents uity community — will provide 625,000 from each additional dollar earned. The best antidote for this high tax rate working Michigan households with an average tax cut of $645 annually. This will cliff is a flat per-child tax credit that does pump nearly $400 million into local econ- not decline as you earn more money. Our Working Parent Tax Credit is designed so omies every year. Now is the time to build on that biparti- that recipients will be able to keep a subsanship and the unity that exists between stantial proportion of increases in work the business and equity communities by earnings. Focusing on households raising young taking the next step in supporting hard working Michiganders in low-wage jobs children is also an essential component of by enacting a Working Parents Tax Credit. the proposal. The Michigan Association of This would provide Working Families Tax United Ways estimates the cost of paying Credit recipient households with earnings for basic necessities for a two-adult houseof at least $10,000 from work with a re- hold with no children is $38,508; for a fundable tax credit of $5,000 per child un- household of two adults and two schoolder the age of three and a refundable tax age children it is $62,928; and for a housecredit of $2,500 per child over the age of hold of two adults with two preschool-age children it is $72,792. The high cost of three and under the age of six. A per-child tax credit is the best way to child care is the main driver of the inconfront three seemingly intractable chal- creased cost of raising preschool children. For households raising young children, lenges that have bedeviled policymakers for decades: the benefit cliff, the difficulty the Working Parents Tax Credit encouragof low-wage workers to pay for child care, es work and provides a significant boost in and the fact that far too many working income, which can help families defray

the cost of raising children. Unfortunately, the challenge that has long faced too many Michigan families is not bad decision making, rather, it’s the lack of sufficient income that can open doors of opportunity. The Working Parents Tax Credit will empower parents to spend the money however best meets the needs of their family. Even more, the Working Parents Tax Credit will be easy to qualify and apply for. Expanded state tax credits should be the cornerstone of a transformation in how we support working families. It’s time to move away from a program-based support system to a cashbased safety net that benefits far more working families than any program can while providing working families with increased income to pay the bills and save for emergencies, retirement and their kids’ education.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 6 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

The Working Parents Tax Credit is a win for Michigan families raising young children, employers, and the overall Michigan economy. It meets all the criteria of good tax policy. It is fair (targeting relief to those most in need), efficient (tied directly as an incentive to work), and simple (no new bureaucracy). Now is the time for Gov. Whitmer, legis-

Expanded state tax credits should be the cornerstone of a transformation in how we support working families. lative Democrats and Republicans and a cross-sector, cross-ideology coalition to work together once again to enact transformative change that benefits Michigan families raising nearly 250,000 children and Michigan employers by incentivizing work.

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.

New Dutch Girl Donuts owner ‘grateful’ for role in rebirth By Jay Davis

The new owner of Dutch Girl Donuts does not plan to change anything that made the 76-yearold Detroit business so revered, other than giving the building some TLC. Paddy Lynch on Nov. 29 told Crain’s that plans call for Dutch Girl to reopen in February or March. Jon Timmer, grandson of Dutch Girl founders John and Cecilia Timmer, will stay on to make the doughnuts using his family’s recipes. Jon Timmer has worked in the family business for more than 20 years. The 39-year-old Lynch, a Detroit resident who has been a fan of Dutch Girl Donuts since his childhood, said the ownership change is good for all parties involved. “With the death of his parents, I don’t think (Jon Timmer) wanted to take everything on himself,” Lynch said. “He didn’t want to have to own the building, run the business. But he definitely wanted to carry on his parents’ legacy. It’s a nice match. I don’t know how to make doughnuts, but I have a lot of ways to support (Timmer) so he doesn’t have to be distracted with a lot of the other stuff, and he can do what he does best. I think both parties are pleased with the expectations.”

Dutch Girl Donuts on Woodward Avenue at Seven Mile Road closed in 2021. | JAY DAVIS

Lynch said the building needs some repairs and updating. Some equipment may be replaced, along with cleaning, painting and window replacements. “I’m not looking to add on or do anything extraordinary,” Lynch said. “The goal is to just get up and running by early 2024. There won’t be any type of complete overhaul. We just want the place to get back to where it was five to 10 years ago.” Lynch on Nov. 29 revealed he’s the buyer mentioned by Dutch Girl in a June social media post. He said he didn’t want to make his name known until a deal had been signed, although the parties agreed on the sale over the summer. Lynch paid $150,000 for the 1,200-square-foot building at

19000 Woodward Ave. He did not disclose the purchase price for the business. The Lynch and Timmer families have known each other for decades and that relationship contributed to the decision to select Lynch as the next owner of the doughnut shop. Paddy Lynch said a cousin of his, Tim Lynch Jr., who manages Lynch & Sons in Walled Lake, grew up with the Timmers and performed funeral services for the Dutch Girl family. “It sounds like (the Timmers) had conversations with other people well before me,” Lynch said. “I didn’t want to piecemeal it. I wasn’t interested in buying the building and not having (Jon Timmer) in-

around a lot, but I won’t be the general manager. I think between some former employees who want to come back, some of the management team from The Schvitz, and Jon, that it’ll be a team effort. I’m intimately connected in any project I take on, so I’ll have daily communications with operations staff.” That staff will likely consist of eight to 10 full- and part-time employees. The operations part of the business still needs to be figured out, Lynch said. Some changes will come initially, he added. “Dutch Girl was a 24-hour operation for years. We won’t start out with that,” Lynch said. “We’ll probably have a more abbreviated schedule like they had toward the end. Once we finalize that, we’ll determine how much staff we need. The place has to function around the clock, though.” Lynch said the project brings back a lot of good memories. His father, Pat, began frequenting Dutch Girl in the 1970s while dating his mom, Mary. “To be a part of (Dutch Girl’s) comeback — I’m grateful for that,” Lynch said. “Hopefully it outlives all of us. Doughnuts are a simple thing, but they’re a beautiful thing. They’re universal. They’re not crazy expensive. I’m really excited about this. I’m happy the Timmer family and I were able to figure this out.”

volved making doughnuts. They were excited, I think, for me to tell them I wanted the business and the building, and to retain Jon.” Lynch’s winning bid for the properties came out of a group of more than 30 interested parties. JoHanna Timmer Parrow, the Timmers’ daughter, told the Detroit Free Press that the family connection played a role in the decision to sell to Lynch. “We couldn’t have chosen a better person to hand this baton to,” Timmer Parrow told the Free Press. “I feel amazing about Paddy and the Lynch Family.” Jon Timmer and JoHanna Timmer Parrow did not immediately respond to a Crain’s request for comment. Dutch Girls Donuts opened in 1947 in Detroit and closed in September 2021 following the death of second-generation owner Gene Timmer. Lynch said he’ll likely not be involved in the day-to-day operations at Dutch Girl. He also owns Detroit bathhouse The Schvitz and is a third-generation, full-time funeral director with Lynch & Sons funeral home in Clawson. “I don’t expect to be there every day,” Lynch said. “I’m a part of the Detroit community. I live in Arden Park and work up Woodward, so I’ll pass Dutch Girl twice a day. I’ll be

GIVE

CONGRATULATIONS TO THE 2023 MICHIGAN ORBIE® AWARD WINNERS

JANE SYDLOWSKI LEADERSHIP AWARD

Presented by MichiganCIO

Presented by Cloudflare

Presented by Year Up

Presented by PwC

Presented by Tata Consultancy Services

Presented by Accenture

JOSHUA WILDA LARGE CORPORATE

DARLENE TAYLOR ENTERPRISE ORBIE

ASH GOEL LARGE ENTERPRISE ORBIE

SOMA VENKAT GLOBAL ORBIE

DANI BROWN SUPER GLOBAL ORBIE

LAURA CLARK NONPROFIT/PUBLIC SECTOR ORBIE

ESHWAR PASTAPUR CORPORATE ORBIE

Presented by Forum Systems

Presented by Year Up

DECEMBER 4, 2023 | CRAIN’S DETROIT BUSINESS | 7

Crain’s Best-Managed Nonprofit program honors the best in leadership and financial stewardship in Southeast Michigan’s nonprofit community. Winners undergo a financial review by the nonprofit practice group at Plante Moran PLLC and are selected after initial scoring and in-person interviews by a panel of nonprofit experts. This year’s contest asks nonprofits to share how they seek feedback from the people they serve and how they use that information to improve programs and services. This might include shifting to help clients overcome barriers, filling gaps in services and adjusting how and when services are offered. This program cannot happen without the generous efforts of our volunteer judges and Plante Moran, who undertake a monthslong vetting process that starts with a financial review to make sure candidates are fiscally sound and following best practices financially, before moving on to a multistep evaluation process that includes in-person interviews of the finalists. This year’s judges: ◗ John Bebes, CPA and partner at Plante Moran. ◗ Gary Dembs, founder of the Non-Profit Personnel Network, a headhunting agency focused on nonprofit job placement. ◗ Kelley Kuhn, president and CEO of the Michigan Nonprofit Association ◗ Richard Martin, principal at Caleb LLC, a nonprofit and philanthropy consultancy firm. ◗ Shamyle Dobbs, chief executive officer at Michigan Community Resources, which supports nonprofit and grassroots organizations with capacity-building services, tailored cohort experiences and legal guidance. ◗ Louis D. Piszker, chief executive officer at Wayne Metropolitan Community Action Agency, a 2022 Crain’s Best-Managed Nonprofit winner. — By Sherri Welch

Event Feb. 15 Crain’s has been honoring Best-Managed Nonprofits in Southeast Michigan since 1991. This year’s theme: Meeting clients where they are. Filling gaps in services and improving client accessibility are among the biggest challenges all nonprofits face. Join us at Saint John’s Resort in Plymouth on Feb. 15, 2024, to find out how Best-Managed Nonprofit winner Turning Point and our four finalists use best practices. 8 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

WINNER

Back row (from left): Keisha Hairston, administrative director; Averett Robey, senior strategy and education director; and Eric Heim, human resources director. Front row (from left): Denise Figurski, development director; Sharman Davenport, president and CEO; and Chris Huntington, executive assistant. Not pictured: Sara Dobbyn, deputy director, and Christina Boyland, administrator of clinical forensic nursing services. | LAURÉN ABDEL-RAZZAQ

Turning Point Macomb By Sherri Welch

It was no secret that domestic violence worsened during the pandemic, as victims and aggressors locked down in confined spaces together. But at least in Macomb County, levels of abuse have not gone down since then, said Sharman Davenport, president and CEO of Turning Point, an emergency shelter for survivors of domestic and sexual violence and human trafficking. “We are still seeing an increase.” With the severity and frequency of abuse increasing, more people reached out to Turning Point, an emergency shelter, during COVID. But people were afraid to leave their home and go to a shelter out of fear they would contract the virus, Davenport said. Housing was a huge barrier for survivors at that point and even before the pandemic, she said. “If you don’t have anywhere to go, it makes it hard to leave.” And if you have only a shelter to

turn to and can only stay so long, “a lot of people are going to go back home because they don’t have a safe place to go or to raise their kids,” Davenport said. Turning Point set out to do something about it. For the short term, the nonprofit began “hoteling” people, putting them up in area hotels to give them a place to escape their attacker and keep them from getting sick. But recognizing that need would long outlast the pandemic, it launched housing programs to give survivors a safe place to call home. “We recognized that not only during the pandemic but from (before it)... one of the main barriers for people to leave a domestic violence situation and kind of permanently make that change was having somewhere to go,” Davenport said. “We realized the need for us to create housing that was safe and affordable for survivors.” In 2020, Turning Point launched a transitional housing program and a more permanent housing

program. Davenport put out a round of grant applications, securing $800,000 in county, state and federal support to help line up housing for women and men, and their children, fleeing their abusers. She and her team also began approaching landlords in Macomb County to build relationships. Some were open to the idea of providing apartments and single-family homes paid for initially by Turning Point. Others weren’t interested in third-party leases, Davenport said. The nonprofit persisted and was able to secure 15-25 units of housing before the end of 2020. It began offering survivors ready to leave the shelter free, transitional housing for up to two years while they were provided with other services including counseling, case management, financial literacy and career counseling. “We’d find (an apartment or rental house), put our name on it and provide all of the furniture,” Davenport said, noting furnish-

ings as well as earned revenue to support its larger operations come in through its Second Hand Rose thrift shop in Clinton Township. Similarly, once survivors are ready to move into a home of their own, Turning Point finds an apartment or home, helps them put it in their name and pays a portion of the rent for one year. Today, the nonprofit has about 75 housing units in Macomb County, Davenport said, something it’s maintaining with continued grants, donations and earned revenue. Turning Point’s annual budget has doubled over the past five years to $7 million to support the new housing programs, emergency shelter, forensic nursing exams and case management for counseling and job training and placement it provides. In response to need in the county, it began providing the same services for human trafficking survivors. See TURNING POINT on Page 10

Thank you for joining us at Samaritas' Annual Ripples “A World of Difference” Gala on November 3rd. It was truly an incredible evening!

Left: Moderator Margaret Trimer, Delta Dental, hosts Fireside Mission Moment Chat with Keith Rogers-Hempsted and Sijana Dzinic, Ph.D., Karmanos

We are thrilled to share that the event was a tremendous success, raising a significant amount of funding to help the most vulnerable individuals in Southeast Michigan by providing affordable housing and a wide array of programs for children and families, refugees and those who need mental health and addiction services. Throughout the night, we had the opportunity to explore and appreciate the diverse cultures from the regions where we welcome refugees. From vibrant African dances and music to mesmerizing henna tattoos, energetic salsa, graceful belly dancing, and captivating Ukrainian performances - there was something for everyone to enjoy. We presented awards to Amy Hovey, MDSHA, Poppy SiasHernandez, Office of Global Michigan, Demetrius Starling, MDHHS. as well as John Laing Company and Kensington Church.

Below: Nanou Djiapo’s African Drum and Dance showcasing a traditional African dance.

Above: Kelli Dobner, Samaritas, and Lt. Governor Garlin Gilchrist II present A World of Difference Award to Amy Hovey, MDSHA, Poppy Sias-Hernandez, Office of Global Michigan, Demetrius Starling, MDHHS.

2023 Event Chair Sarah Pobocik Market LeaderCommercial Banking PNC Bank

2024 Event Chair Anida Sabanovic Vice President, Senior Bank Manager Comerica Bank

Special Guest Lt. Governor Garlin Gilchrist II

THANK YOU TO OUR SPONSORS!

Bridgewater Interiors • Cinnaire • Comcast • Comerica • Corporate Fleet Services • Corewell Health • Kelli and Keith Dobner • Fifth Third Bank • Gordon Food Service • Lightning Digital • Magna • McMahon Airborne Logistics • Molina Healthcare • Dave and Linda Morin • NFP • NYX Inc. • Ooma, Inc. • Synod of the Covenant • United Wholesale Mortgage • USI Insurance Services, LLC. • David and Marilyn Lochner • MSHDA • T-Mobile • Dave and Debbie Wohleen

BEST-MANAGED NONPROFITS | FINALISTS

City Year Detroit

L R

By Sherri Welch

By S

When City Year Detroit did its year-end survey of staff and AmeriCorps members working in 10 Detroit schools, a resounding concern was their well-being. Staff and corps members facing trauma like school lockdowns and gang fights as part of their workdays were struggling with mental health and burnout. In response, City Year added new mental health first aid training for corps members and staff to help identify and triage mental health issues and needs, whether among students or staff. “The well-being factor on the corps survey was one we needed to address,” Sherisse Butler, senior vice president and executive director, said. “We were seeing an increase in mental health issues that was impacting corps members’ ability to complete their one-year service commitment.” Corps members are young adults, aged 18-26, serving as near-peer coaches and mentors to students to help improve academic outcomes and support better attendance and behavior. City Year secured a $3 million earmark from the state as part of its fiscal 2024 budget to expand mental health and academic training with corps members and staff.

W the ry-M tral con cen bor fires It in scho in hoo afte nity pres non the only who ed n offe labe whi oniz tent W turn drid Rem

The City Year Detroit staff. | PROVIDED

The training is helping them build resilience and coping skills, Butler said. The Detroit nonprofit had 98 corps members as of October, nearly twice as many as it had at this point last year. Of those, 80 percent are still in place, up about 15 percent from the same point in the 2022-23 academic school year. And based on a Detroit Public

Schools Community District survey, students benefiting from one-on-one support from AmeriCorps members or with those members in their schools said they felt more cared for and more prepared for learning, Butler said. Operating on a budget of $7.2 million, City Year surveys staff and corps members at the beginning of each year to gauge their

YOUR DONATION SUPPORTS WORKING FAMILIES IN NEED.

UNITEDWAYSEM.ORG/DONATE

10 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

now working with the district to develop a student and parent survey, Butler said. Based on feedback from Americorps members, it’s going to be vital to get feedback on City Year’s supports in schools and needs, directly from students and parents, she said. “You’ve got to get their authentic voice as well.”

Turning Point’s signature event, the 2023 Tara’s Walk. | KAPTURED THAT LLC

survivors can sustain their housing when we are no lonTURNING POINT whether ger paying,” Davenport said. From Page 8

“

Like my family, nearly 40% of families in our region will struggle to put food on the table and keep the lights on this winter. You can help by donating today. Angie A.

“

TEXT DONATE TO 50503

level of preparation and training, as well as at the end of each school year. The City Year Detroit team at each school elects a single representative to participate in monthly roundtables to provide ongoing feedback on improving service delivery and training. It also surveys teachers and administrators in schools, and it’s

Last year, with a staff of 70, it served about 8,000 survivors, children and family members, providing emergency shelter and rehousing and assistance with personal protection orders from an office at the Macomb County Court House. Just less than two-thirds of its budget is comprised of federal and state grants, Davenport said. The remainder is split between earned revenue and fundraising. Turning Point has placed more than 150 survivors into safe homes over the past four years, Davenport said. The immediate impact is clear, but how are they doing long term? “Really what we look at is one,

Clients can continue to receive follow-up support from Turning Point for two years. “Even though it’s only...going on four years...we have about a 97% success rate of people being able to maintain when we are no longer there after two years of exiting Turning Point’s housing programs,” she said. Turning Point is adding social and other supportive events for those who’ve come through the shelter and moved into new housing. Events like an annual holiday party and programs like adopt-a-family during the holidays and car repair assistance are giving the nonprofit a way to stay connected to see how the survivors are doing, Davenport said.

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Life Remodeled By Sherri Welch

When Life Remodeled acquired the former Durfee Elementary-Middle School building in central Detroit for $1 with a plan for converting it into a community center for the surrounding neighborhood, it wasn’t ready for the firestorm that came its way. Its earlier, $15 million investment in cleanup, beautification and school building renovation efforts in three other Detroit neighborhoods were welcomed in each. But after it bought Durfee, the community showed up in numbers to express anger and outrage that the nonprofit had been allowed to buy the 143,000-square-foot building for only $1 when residents — many who had lost their homes or operated nonprofits themselves — weren’t offered the same opportunity. They labeled Life Remodeled and its white CEO Chris Lambert as a “colonizer and gentrifier” that was intent on displacing Black residents. With help from former executive turned board member Dwan Dandridge, a Black nonprofit leader, Life Remodeled changed its approach,

Life Remodeled staff: (front row, from left) Chris Lambert, CEO; Tyrie Goodner, youth engagement coordinator; Faith Davis, Next Level nonprofit marketing fellow; (Back row, from left) Rhonda Evans, marketing director; Amanda Travis, advancement coordinator; Kennedi Roberts, hospitality and events coordinator; Brooke Adams, philanthropy director; Brandi Haggins, VP of opportunity hubs; Stepha’N Quicksey, director of youth and community engagement; Diallo Smith, COO; Omari Taylor, chief advancement officer; Kelsey Kneebone, Six Day project manager. | PROVIDED

committing to a “community first mindset” that incorporates transparent conversations with the leaders of communities it is working in. It worked with residents to create an advisory council seated with 10 residents who are advising on the needs of the community as it relates to programs at the Durfee Innovation Society center and to

name eight local students to a youth group advising on youth programming and engagement. As it expands its work into new neighborhoods, Life Remodeled is reaching out to the local community to share its plans and to ensure that residents are heard and that their feedback is incorporated in projects that directly impact where

they work, live, learn and play. Its community-first approach extends to its board where half of its 12 directors identify as Black or African American, helping to ensure the perspective of Detroit’s majority-Black communities is taken into consideration at the highest levels of the nonprofit and its work. Life Remodeled, which is operat-

ing on a $2.9 million budget, is also regularly surveying members of the community and tenants providing services at Durfee to ensure it’s staying in touch with needs. After hearing the No. 1 reason students were missing school was because they didn’t have clean clothes, it installed a free laundromat with machines and detergent for community use.

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cial for the ousday like oliare stay rvi. DECEMBER 4, 2023 | CRAIN’S DETROIT BUSINESS | 11

BEST-MANAGED NONPROFITS | FINALISTS

SER-Metro-Detroit By Sherri Welch

SER-Metro-Detroit, Jobs for Progress Inc., in 2019 launched a “no-wrong-door” workforce development program to simplify the path to a job in the construction trades. The widely reported talent shortages in the construction field weren’t jibing with the full classes of participants in SER-Metro-Detroit’s prior construction training classes, said Ann Leen, assistant vice president of youth programs. “We were looking at classes of people and thought ‘something is wrong there.’ We had program participants, but what they were walking out with was not adequately preparing them.” SER-Metro went back to employers to ask what they needed and rebuilt the program to offer everything from soft skills like showing up to work on time to a specific certification that was needed. Open to older adults and returning citizens as well as younger adults, the program offers education and job training to meet participants where they are, providing whatever level of education and vocational training is needed.

The cohort program enables participants to obtain the appropriate education and credentials needed to apply for a job through programs running from four weeks to one year, depending on the needs, Leen said. SER-Metro also sought feedback from the people it was serving and heard about barriers like transportation and child care issues. It has secured more than $4 million in grants since the program’s inception to provide support for things like child care, housing, transportation, steel-toed boots, Carhartt jackets and stipends to enable participants to pay their bills and feed their families while

The program offers education and job training to meet participants where they are. in the program. All of those things have helped incentive retention and completion in the program, Leen said. Of the hundreds of people who have come through the program this year alone, 75-80% have graduated, and 75% of those who have gone into a construction job have kept it for at least one year.

The SER-Metro-Detroit leadership (from left): Manuela Zarate, Eva Garza Dewaelsche, Dr. David Cunningham, Ann Leen, Jason Fitz and Veronica Sanchez Peavey. | PROVIDED

A F e e - O n l y We a l t h M a n a g e m e n t G r o u p

Michigan’s #1 Financial Advisor by both Barron’s* and Forbes** Charles C. Zhang CFP®, MBA, MSFS, ChFC, CLU Founder and President

Charles is the highest ranked Fee-Only Advisor on Forbes’ list of America’s Top Wealth Advisors**

www.zhangfinancial.com 101 West Big Beaver Road, 14th Floor Troy, MI 48084 (248) 687-1258 Minimum Investment Requirement: $1,000,000 in Michigan $2,000,000 outside of Michigan. Assets under custody of LPL Financial and Charles Schwab. *As reported in Barron’s March 11, 2023. Rankings based on assets under management, revenue generated for the advisors’ firms, quality of practices, and other factors. **As reported in Forbes April 4, 2023. The rankings, developed by Shook Research, are based on in-person and telephone due diligence meetings and a ranking algorithm for advisors who have a minimum of seven years of experience. Other factors include client retention, industry experience, compliance records, firm nominations, assets under management, revenue generated for their firms, and other factors. See zhangfinancial.com/disclosure for full ranking criteria.

12 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

Chief Development Officer Mary Vogt (from left), Chief Operating Officer Meredith Reese, Chief Executive Officer Megan Zambiasi and Chief Financial Officer Kathy Regan of Vista Maria. | PROVIDED

Vista Maria By Sherri Welch

It’s been a longstanding issue in the child welfare system that families are not always at the forefront of the process, Vista Maria CEO Megan Zambiasi said. “We decided we wanted to change that, especially since the focus is getting kids back with their families,” she said. Whether biological or foster, parents want to be more involved without feeling like things are just happening to them, she said. Dearborn Heights-based Vista Maria provides therapy to youth and families, residential care for girls who are survivors of abuse and neglect and in the child welfare system, on-campus schooling for them, services for human trafficking survivors and foster care services in the community.

Last year, the 140-year-old nonprofit formed an advisory council of parents who have engaged with the child welfare system in some way in the past. The group is providing basic advice on what would be helpful for kids and families in Vista Maria’s residential program. The nonprofit, which is operating on a $32 million budget, also hired two “parent ambassadors” who’ve been through the process with their own children. Those new staff members answer questions and provide other peer support The nonprofit plans to hire two additional parent ambassadors by 2025 to extend the program to the families of children in foster care in the community, as well. In the past, the system has been top-down. “We are trying to take feedback and … improve it at a grassroots level,” Zambiasi said.

The family-driven model is already helping to improve family connections, Vista Maria said, noting it helped bring about reunifications for 34 families in its residential and foster care programs last year. The approach is the latest in Vista Maria’s bid to be responsive to the needs of the people it serves. In 2020, it launched a wraparound program to support youth and families dealing with behavioral health issues, financial pressures and other family stressors that put them at a high risk for abuse, neglect and intervention from Child Protective Services. The program provided academic support, employment assistance, behavioral counseling, resource referrals, and mentorship to 12 families in its pilot year and is serving more than 45 families this year.

CRAIN'S LIST | LEADING SMALL BUSINESS LENDERS 7(a) Guaranty-loan activity by lender, fiscal year 2023; ranked by number of SBA loans in Michigan NUMBER OF APPROVALS LENDING INSTITUTION CITY

1 THE HUNTINGTON NATIONAL BANK 2 THE STATE BANK 3 COMERICA BANK 4 BAYFIRST NATIONAL BANK 5 FIFTH THIRD BANK 6 JPMORGAN CHASE BANK, NATIONAL ASSOCIATION 7 NEWTEK SMALL BUSINESS FINANCE INC. 8 NEWTEK BANK, NATIONAL ASSOCIATION 8 PNC BANK, NATIONAL ASSOCIATION 10 KEYBANK NATIONAL ASSOCIATION 10 OXFORD BANK 12 OLD NATIONAL BANK 12 FIRST INTERNET BANK OF INDIANA 14 LIVE OAK BANKING COMPANY 15 BYLINE BANK 16 HORIZON BANK 17 UNITED MIDWEST SAVINGS BANK, NATIONAL ASSOCIATION 17 READYCAP LENDING LLC 19 FIRST MERCHANTS BANK 19 CELTIC BANK CORP. 21 4FRONT CREDIT UNION 21 NORTHEAST BANK 23 CDC SMALL BUSINESS FINANCE CORP. 24 1ST STATE BANK 24 WEST SHORE BANK 24 BANK OF AMERICA, NATIONAL ASSOCIATION 24 1ST SOURCE BANK 24 COMMUNITY CHOICE CREDIT UNION 29 CITIZENS BANK, NATIONAL ASSOCIATION 30 THE FIRST NATIONAL BANK & TRUST CO OF IRON MOUNTAIN 30 MICHIGAN SCHOOLS & GOVERNMENT CREDIT UNION 30 KELLOGG COMMUNITY CREDIT UNION 30 THE DART BANK Columbus Fenton Dallas

St. Petersburg Cincinnati New York

Lake Success Miami

Pittsburgh Cleveland Oxford

Evansville, Indiana Indianapolis Wilmington Chicago

Michigan City De Graff

Berkeley Heights Ft. Wayne

Salt Lake City Traverse City Lewiston

San Diego Saginaw

Muskegon Charlotte

South Bend

Farmington Hills Providence

Iron Mountain

Clinton Township Battle Creek Mason

PREFERRED LENDER PROGRAM

SBA EXPRESS

OTHER

1,399

375

1,023

TOTAL NUMBER OF LOANS/ TOTAL LOANED AMOUNT $201,839,000 $36,121,700 $25,924,500 $8,181,800 $36,189,900 $13,409,600 $23,184,000 $10,297,400 $6,808,500 $8,210,500 $12,576,100 $33,047,800 $47,901,000 $34,805,000 $21,052,300 $8,656,900 $2,545,000 $12,087,400 $800,000 $8,369,400 $6,071,000 $586,600 $1,945,200 $2,173,000 $3,597,800 $3,767,200 $1,155,800 $761,900 $2,790,000 $1,218,900 $2,934,700 $2,592,800 $3,782,200

Researched by Michigan District Office SBA | This list was compiled from information provided by the Michigan district office of the SBA for fiscal year 2016: Oct. 1, 2022-Sept. 30, 2023. The Preferred Lender Program allows selected lenders

to make certain SBA loans without prior approval from the SBA. SBA Express allows PLP lenders to use many of their own forms, analyses and procedures to process, service and liquidate SBA loans of up to $500,000. Other includes Regular 7(a), Community Advantage, Veterans Advantage and other specialized 7(a) loans.

Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data

DECEMBER 4, 2023 | CRAIN’S DETROIT BUSINESS | 13

PEOPLE ON THE MOVE

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

ADVERTISING / PR / MARKETING

AUTOMOTIVE

NONPROFIT

Siren

Ziebart World Headquarters Ziebart International Corporation is proud to announce the promotions of Larisa Walega to Senior Vice President and Chief Walega Growth Officer and Jason Case to Vice President and Treasurer. Larisa has been in the marketing and advertising industry for over 20 years with her last 14 years at Ziebart. Larisa’s primary role will be growth strategies related to Ziebart’s marketing and franchise development Case activities. Jason has been with the company for over 13 years in many roles of increasing responsibility. Jason’s responsibilities include all aspects of corporate financial functions, cash management, liaison to several independent audit firms, banks and insurance institutions and warehouse functions.

Girl Scouts of Southeastern Michigan

Michigan Saves

Kristen Bujold was promoted to Managing Director of Communication Strategy for Siren, a strategic communications firm. In her expanded role, she guides and advises the Siren team on the varied communication initiatives for their many community development, philanthropic, higher education and municipal clients across Michigan. Kristen leads with her signatures strengths of perseverance, project management and team leadership. She lives in Farmington Hills with her husband and two daughters.

Girl Scouts of Southeastern Michigan As Girl Scouts of Southeastern Michigan’s first Chief Program Officer, U of M alumna Damiana Sorrell brings a strong Sorrell background in K-12 and higher education programming. Damiana is committed to developing impactful programming for the whole child to help young women reach their full potential beyond the classroom while promoting career readiness across all fields. Shanita Canady Canady joins Girls Scouts of Southeastern Michigan as Deputy Chief of Council Programs with 19 years of experience in K-12 education. She’s determined to provide underrepresented youth with opportunities to learn, grow, and excel in their education and personal choices. She is a native Detroiter and holds multiple degrees from Wayne State and Oakland University.

Girl Scouts of Southeastern Michigan welcomes Kevin Fite as Vice President of STEAM, Financial Literacy and Entrepreneurship. His Fite involvement with youth spans 20 years including founding the Detroit City Chess Club, one of the largest scholastic chess clubs in the United States. He looks forward to coordinating rewarding opportunities for Girl Benson Scouts. Chasity Benson is the Director of the Girl Empowerment Program for GSSEM. With a bachelor’s degree in Developmental Psychology from University of Detroit Mercy, she joined Girl Scouts of Southeastern Michigan to mentor girls of courage, confidence, and character. Chasity is excited to ensure the Girl Empowerment Program continues to encourage the leadership advancement of all girls.

NONPROFIT

Girl Scouts of Southeastern Michigan

Dana Hoskins Dew is the Director of Life Skills for the Girl Scouts of Southeastern Michigan. With a master’s degree in social work, Dana is an Dew advocate for health, wellness and criminal justice reform. She is passionate about making a positive impact by creating programs to help dynamic girl leaders of today progress into the future they see for tomorrow. As Vice President of Partnerships & College and Career Readiness Ward-Gilkey at GSSEM, Toria Ward-Gilkey develops alliances and innovative programs to help girls grow in Life Skills, Skilled Trades, Financial Literacy, Entrepreneurship, STEAM and Camp & Outdoor Education. Toria is a proud alumna of Cass Technical High School, Davenport University, Wayne State University, and Oakland University.

Claire Sabourin is the new Deputy Chief of Research and Evaluation at Girl Scouts of Southeastern Michigan. She leads the Council’s research and evaluation work benefiting program development and strategic project activities. Claire has more than ten years’ experience working with young people directly. A former Girl Scout and current Detroit resident, Claire is excited to support the development of girls and young women as they become future leaders and innovators in their communities.

Siren Luke Londo joined Siren, a strategic communications firm, as a Senior Account Executive. He will serve Siren’s many community development, philanthropic, higher education and municipal clients across Michigan. Luke previously led communications for Dan and Jennifer Gilbert’s philanthropic organizations, the Gilbert Family Foundation and Rocket Community Fund. He’s a graduate of Northern Michigan University and serves as a Hazel Park City Councilmember and a Michigan Civil Rights Commissioner.

AUTOMOTIVE

Henniges Automotive Henniges Automotive has officially appointed Linda Hellebuyck to chief financial officer (CFO) of the company, a position she held in an interim capacity since November 2022. In this role, she will oversee treasury, accounting, financial planning and analysis, risk management, taxation, information technology, legal affairs and capital funding for Henniges. Hellebuyck has more than 30 years of experience in the finance and accounting space and more than 25 years in the automotive industry.

FINANCE

Cornerstone Community Financial Cornerstone Community Financial Credit Union named Robert Stier its new CFO, and Gabrielle Champine Vice President of Brand & Stier Growth. As CFO, Stier is responsible for oversight of all CCF budgets, financials and accounting functions, policies and procedures. He brings to the role nearly a decade of experience in banking, financial analysis and management, Champine including most recently as V.P. of Finance at Parda Credit Union. Gabrielle Champine, V.P. of Brand & Growth, is responsible for leading CCF’s brand, marketing and advertising strategies and processes, strengthening CCF’s connection to the communities it serves. Prior to CCF, she spent more than five years leading client teams as an agency account director at KORTX and Brogan & Partners.

NEW GIG?

Preserve your career change for years to come.

14 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

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Michigan Saves announces its new president and CEO, Chanell Scott Contreras, who joins from ProsperUs where she served as executive director and Michigan’s first Black woman leader of a community development financial institution. Her passion for climate resilience and experience collaborating to strengthen communities positions her to lead Michigan Saves in expanding equitable access to energy efficiency and clean improvements needed for the health, safety, and comfort of all Michiganders.

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Strobl PLLC Evan Kaploe joined Strobl PLLC and brings an extensive tax knowledge to counsel businesses across a multitude of industries, as well as individuals. He specializes in tax controversy and planning, corporate, estate planning, and bankruptcy. Prior to joining Strobl, Evan worked as a Senior Attorney in Tax Litigation with the Office of Counsel for the Internal Revenue Service. Evan has a proven track record of minimizing tax burdens and representing clients before governmental agencies.

SOFTWARE

WorkForce Software WorkForce Software names Jeff Moses CEO. A 25-year veteran of B2B Cloud SaaS, his expertise in go-to-market strategy & revenue generation positions him to lead WorkForce Software’s global operations, focusing on customer success & expanding the partner ecosystem. During Moses’ tenure as Chief Revenue Officer, the company posted its highest-ever revenue growth & closed the largest commercial agreements in the company’s history. Previous roles include positions at Blackbaud, Informatica and SAP.

Recovery Park plans to sell properties, farm structures By Sherri Welch

Detroit nonprofit Recovery Park is in negotiations to sell its east Detroit building and, separately, the high tunnels that launched its foray into urban farming. It’s also in much earlier-stage conversations with an undisclosed buyer looking to purchase more than 60 of the 347 parcels it owns in the Chene-Ferry neighborhood. The sales, if concluded, would generate cash for paying down $500,000 in debt tied to property acquisition and moving forward on other ventures that will create new jobs for returning citizens and recovering addicts, including a long-envisioned plan for a commercial greenhouse, Recovery Park’s leaders said. “Last year and this year have been real challenging for us. We’ve invested some of our COVID dollars into ventures that didn’t work out the way that we wanted them to. And so we’ve decided to take lessons learned and pivot on a few things,” President and CEO Gary Wozniak said. The organization’s mission is to create jobs for returning citizens. Wozniak, a returning citizen himself, and Recovery Park’s board have come up with a number of business ventures to do so. Chief among them is a plan for a glass greenhouse that will create jobs and revenue to support them through year-round, hydroponic growing. High-profile, former investors in the plan walked away and later launched a separate hydroponics company. And last year, Recovery Park was ordered by an Ingham County Circuit Court judge to repay the state $750,000 in Michigan Strategic Fund loans for the stalled project. That loan and $500,000 in debt tied to property acquisition is still outstanding, Wozniak said. The sales will enable the nonprofit to pay down debt and produce operating cash to hire some

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Recovery Park’s greenhouse off East Grand Boulevard. | SHERRI WELCH

“We’ve invested some of our COVID dollars into ventures that didn’t work out the way that we wanted them to.” — Recovery Park President and CEO Gary Wozniak employees back to help maintain the property Recovery Park owns and to continue planning for other job-creating businesses, including a glass greenhouse with hydroponic crops and another venture or two, leaders said. Recovery Park has been approached by two different real estate agents representing buyers interested in purchasing its

building at 5470 Chene St. near Ferry Street, Wozniak said. It’s asking $600,000 for the two-story, 7,000-square-foot building and expects to complete a sale in January. As part of any deal reached, Recovery Park will maintain office space in that building, said Recovery Park Chairman Pat Crosson, owner of Wolverine Flexographic Manufacturing Co. in Farmington. Recovery Park provides job training and support for returning citizens and recovering addicts. The nonprofit launched in 2010 and in 2012 established the for-profit Recovery Park Farms to create businesses and jobs around the food and agricultural industry for those people. With 15 employees at the height of the high-tunnel farming, the nonprofit sold baby lettuce, mixed

REAL ESTATE

JOB FRONT

a couple of other operations that will also produce cash flow or jobs for returning citizens, Crossman said. Among other things, they include the possible sale of more than 60 parcels of the 347 it owns in the Chene Ferry Neighborhood to an undisclosed buyer and the opening of three Ori’Zaba’s Scratch Mexican Grill franchises in the region. Wozniak said Recovery Park is negotiating a lease for a site in Clinton Township and expects to take possession and start the build-out for the first Ori’Zaba’s site by March 1, 2024. In 2021, the year of its most recent publicly available 990 form, Recovery Park reported $230,211 in total revenue, an operating loss of just less than $75,000 and -$3.55 million in net assets/fund balances.

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From Page 3 HEALTH BENEFITS

After checking the art registry for stolen objects at the International Foundation for Art Research, the auction house reached out to the Penn Museum in Philadelphia, which has had a similar Luohan statue in its collection since 1914. Through conversations with that museum and the Tsz Shan Monastery Museum in Hong Kong, it was determined the piece in Michigan may have once been part of a collection that inCOMMERCIAL PROPERTY cluded the statues in Philadelphia and Hong Kong. How the more than 700-yearold Chinese statue got to Michigan isn’t known, Bob DuMouchelle said. The auction of the statue drew bidders from as far away as China and Taiwan, he said. After drawing “Oohs” and “Aahs” as the bids

tomatoes and other vegetables grown through a distribution agreement with Del Bene Produce up until COVID shut things down. With five employees returning after COVID, it had begun experimenting with new crops including mustard greens, collards and watermelons over the past two years but didn’t produce enough to sell, Wozniak said. Recovery Park is now reaching out to local urban farmers to get the word out that it’s looking to either lease the eight high tunnels — plastic-covered structures that lengthen the growing season for crops — on the current, oneacre site they sit on or sell them and other farming equipment, he said. At the same time, Wozniak — Recovery Park’s lone, unpaid employee — is developing plans for

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

JOB FRONT A rare bronze statue representing a Luohan was sold at auction Oct. 20 at Dumouchelle auction house in Detroit. | DUMOUCHELLES

increased, it fetched a final bid of $930,000. The winning bidder for the Luohan was an Asian art gallery that sent specialists to preview the piece and bid in person. The woman bidding jumped up excitedly when she won, DuMouchelle said. And the seller cried.

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You never know what you have in your basement, attic or garage, he said, noting the Detroit auction house does free, walk-in appraisals for a few hours on Wednesdays and Saturdays. “It’s better to check ... to ask if it’s of value before you throw it away,” DuMouchelle said. DECEMBER 4, 2023 | CRAIN’S DETROIT BUSINESS | 15

HOTEL

job lasting 16 months and costing $2 million. There was a deed restriction that prohibited them from opening another bank, but that was the last thing they had in mind. They wanted to create an eye-popping place to stay. Over the years, much original craftsmanship had been covered up by drywall and dropped ceilings. “We found things behind walls, in the basement. Everything we found, we put back into the building,” she said. That included a carved wooden fireplace. They also exposed, and left exposed, a lot of the original brickwork. They actually incorporated a real vault on the ground floor into a feature of one of the hotel rooms. The hotel opened in September 2019. Hopes were high for the 2020 summer, and then COVID hit in March 2020, shutting everything

down. Everyone feared the worst. An economic catastrophe seemed to be looming. But on June 1, Gov. Gretchen Whitmer lifted some restrictions that essentially reopened the U.P. for business, and by all accounts the region had its best summer ever, by far. Visitors who couldn’t vacation in Europe or Hawaii or elsewhere by plane because of COVID restrictions got in their cars and decided to take the UP off their bucket list. Prices for overnight or weekly stays at area motels and cabins jumped substantially. Jennifer said The Vault was sold out all summer. Buoyed by early prepandemic success with the Vault, in January 2020, the Juliens bought a rundown hotel just east of The Vault on Shelden Street called the Magnuson Franklin Square Inn, a wellpast-its-prime hotel that hadn’t had much attention paid to it in decades. In December 2021, the Juliens held the grand opening of a totally rehabbed 111-room Hampton Inn & Suites, a Hilton franchise they own. “They had the vision to take a building that was at the bottom of mediocre and turn it into that,” said Waara. Now the Juliens are looking to take their recipe for success to another U.P. city. In November 2022, the Michigan Department of Environment, Great Lakes and Energy approved a $495,000 brownfield development grant and a loan of $1 million for the Juliens to transform the State Savings Bank in downtown Marquette into The Vault Marquette. In addition to a high-end 90room hotel, the project over an entire city block on the corner of Washington and Front streets will include new commercial space, 25 residential apartments and a 212-vehicle public parking structure. In July 2021, the Marquette City Commission approved $9.2 million in city brownfield development money for the project.

brokers negotiated 1,741 leases, an average of 4.77 per day. In 2017, there were 2,452 — 6.72 each day. Since the start of the pandemic, only during one quarter has more than 2 million square feet been leased — the third quarter of 2022, with about 2.5 million square feet leased — and there have been three quarters in which less than 1 million square feet of office leasing activity was recorded, CoStar data shows. Between 2013 and the end of 2019, there were 14 quarters with more than 2 million square feet leased. With fewer deals and smaller deals, on a macro level, that has led to layoffs at brokerage firms around the country, ranging from CBRE to Cushman & Wakefield, from JLL to Colliers International Inc. However, that doesn’t mean that companies aren’t hedging their bets, George said. While businesses generally have opted for smaller spaces, they are negotiating with the future in mind. “I would almost say they are hyper-focused on getting expansion rights,” George said.

Vacancy rates in various submarkets (with one exception) have been at their highest levels going back to 2000, Crain’s reported in June. Overall, the vacancy rate in the region has jumped from 9.1% at the start of the pandemic to 12.2% last quarter, CoStar data shows. The future of the office market remains up in the air. In general, brokers, landlords and developers have pointed to what they call a “flight to quality,” meaning that Class A office properties with more and better amenities for tenants will tend to fare better than the Class B and Class C buildings, which offer fewer bells and whistles. That has led some to propose leveling outdated and/or under-utilized buildings to make way for new development, such as in Livonia with a former Comerica building and Dearborn with a former Ford Motor Co. building, or converting them into apartment buildings to address the housing crisis or even self storage, in some instances.

From Page 3

“For me, it filled a need. We didn’t have anything addressing that price point. There was clearly a demand for that product, but it wasn’t being offered. The Juliens proved the naysayers wrong,” said Brad Barnett, executive director of the Keweenaw Convention & Visitors Bureau. “My favorite part of the building is the Speakeasy in the basement,” he said, referring to a bar in what used to be the money-counting room. “Everything they’ve done is intentional. Every detail was finely executed. Look at the antique furniture. It’s a level of ambience that tourists really appreciate. “And their investment in the Vault has spurred other investment nearby. A marketing firm has moved in. There’s a new retail boutique and coffee shops. Other buildings have had facelifts.” In June, the northern Michigan tourist web site MyNorth.com named The Vault as the second-best hotel in the Upper Peninsula, ranking behind Mission Point Resort and ahead of the Hotel Iroquois, both on Mackinac Island. The Houghton National Bank Building was built in 1887 as a symbol of the new Houghton. The powers that be had decided it was time to make a statement and to build a bank that would proclaim a sense of permanence. It was made of sandstone and was the first masonry, nontimber building downtown. Until then, the boom-and-bust cycle of the copper-mining industry, with big swings in the local population, had lent itself to impermanence. By 2016, it had become a Wells Fargo bank. With another Wells Fargo branch a little to the east, by the Michigan Tech campus, the company decided to shut down the downtown bank and put it on the market. The Juliens, a pair of Michigan Tech grads who own a construction company, LJJ Construction LLC; a

LEASE From Page 1

“A hybrid work environment is really the standard at this point.” Steve Morris, a tenant rep specialist who is managing principal of the Farmington Hills-based brokerage firm Axis Advisors LLC, said the hybrid office/home work phenomenon hasn’t been limited in its scope as more traditional office users like law firms and accounting companies have adopted such practices. “Workers want the ability or flexibility to work where, when and how they choose,” Morris said. “They want to have more control of their schedules and routines, as well as their workspaces.” As hybrid work has become the norm, so have smaller office footprints. Although there have been exceptions, many companies and organizations locally have downsized and/or consolidated. Those include Plante Moran, Deloitte LLP, Comerica Inc. and the Detroit 16 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

The Vault hotel was built in what was once the Houghton National Bank. | TOM HENDERSON

A rendering of the planned Vault Marquette development. | BRAVEWORKS INC.

property-management firm, Julien Properties LLC; and a real-estate development company, Braveworks Inc., put in an offer of $200,000. The Juliens also own a beauty salon downtown called the Citrus Salon.

“Wells Fargo’s broker in Chicago laughed at us,” said Jennifer. “Two years later, the broker called us back and asked us if we would still entertain an offer,” she said. They would. The same offer, and this time it was accepted. That was followed by a total gut

Falling office lease sizes The square footage of the average office lease has dropped since the COVID-19 pandemic began in early 2020.

4,000 3,360 3,000 2,000 1,000 0

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Source: CoStar Group Inc.

Regional Chamber, just to name a few. Meridian Health’s parent company, St. Louis-based Centene Corp., put over 300,000 square feet of prime downtown office space up for sublease last year. From 2012 through the start of the pandemic in early 2020, the average office lease size each year

was more than 4,000 square feet, although 2022 was the only year since it has eclipsed that average (4,128 square feet), CoStar data shows. Not only that, but sheer deal volume is down, per CoStar data. So far in 2023, there have been 1,216 office leases, for an average of 3.73 signed per day. Last year,

CELEBRITY From Page 1

regular retail goods, but the industry is beginning to find success under certain names as consumers are faced with an overwhelming number of choices at the store and operators look for a way to stand out. “At the end of the day, the name gets your foot in the (consumer) door once,” said Hilary Dulany, chief marketing officer for Aardvark Industries, which as the exclusive licensing contract for Willie’s Reserve. “It’s the experience that keeps them coming back. You have to have some of the best cannabis behind the name, or you’re done.”

Roll me up Dulany and her family are no strangers to licensing. The family owned Tony Sacco’s Coal Oven Pizza franchises in 13 states before entering the cannabis market, including a location in Eastwood Towne Center in Lansing. They’ve since sold the restaurants. Dulany said Aardvark Industries was established in Michigan in 2019 — it previously operated in Oregon before exiting that market for Michigan — and began selling its own weed under a licensing deal with Cheech’s Stash in the fall last year. The brand is owned by famed Cheech and Chong actor and comedian Cheech Marin. The brand was an instant success for Aardvark, but immediately limited its ability to diversify. “Within three months of selling Cheech, we were selling out,” Dulany said. “We were selling all of the product even before our testing came back. It was a problem.” The company operates a 500-plant grow operation in Dewitt in mid-Michigan. The Cheech brand was accounting for everything the cultivator could produce. “In our industry, every segment of the vertical can pivot except a single source grow,” Dulany said. “They are like freightliners; they take six months to correct. We needed a solution. Few growers our size have a marketing budget, so we needed something that could market itself and operate on exclusivity.” So while the company grows 100% of Cheech’s Stash, it turned to other growers to supplement volumes for other brands. Today, Aardvark manages smaller output for Willie’s Reserve, planning to

Willie Nelson’s cannabis brand Willie’s Reserve is now sold in Michigan. | AARDVARK INDUSTRIES

Mike Bites are Mike Tyson-branded cannabis gummies in the shape of a chewed ear. | TYSON 2.0

owners who consume. We pride ourselves on being standup drug dealers.”

Punch up, punch out Actor Cheech Marin at an Aardvark Industries event last fall to launch his cannabis brand in Michigan. | AARDVARK INDUSTRIES

only sell around 70 pounds of product under the brand in November and 100 pounds in December. Aardvark only grows 25% of Willie’s Reserve. “We don’t ever want this to be a mainstream brand,” Dulany said. “We want it to be found in a really good retail. We take those relationships seriously. We find a retailer and give them Willie’s exclusively in their region and don’t sell to other retailers around them.” Green Stem sells many celebrity-branded cannabis options, including Blues Brothers from Belushi Farms and Garcia Hand Picked, the brand owned by the family of late Grateful Dead singer Jerry Garcia. “We sell quite a few celebrity

brands because they play well in our area,” Lindgren said. “Mostly because of the over-the-border clientele.” Lindgren said many of Green Stem’s customers hail from Indiana, where marijuana remains illegal, and Illinois, which is hamstrung by high taxes and limited availability. Those consumers may not be immediately familiar with Michigan’s marijuana brands, but instantly recognize celebrity names. The retailer sells 75 pounds to 125 pounds of marijuana products to an average of 4,800 people a week. “We are able to communicate very well with our clientele about what brands are coming out and what celebrity brands are worth buying,” Lindgren said. “We are

While Aardvark is focusing on exclusivity of the Willie name, one of the state’s largest vertically integrated operators is building on volume and name recognition. Marshall-based Common Citizen recently launched Mike Tyson’s marijuana brand at its own retailers, including Liv Cannabis, and others not owned by the operator. The company currently grows, processes and sells Mike Bites, which are gummies shaped like an ear with a bite taken out — an ode to Tyson’s fight against Evander Holyfield for the heavyweight championship where Tyson bit a one-inch chunk out of Holyfield’s ear, a move he did late in the match that resulted in his disqualification. Coincidentally, Tyson and Holyfield now jointly license a gummy product around Christmas called Holy’s Ear.

Mike Elias, CEO of Common Citizen, said he long fought against licensing a celebrity brand, but as retail shelves become overstuffed with different product, having Tyson on board gives a new way to differentiate. “Look, this idea of licensing brands is an old age idea that manufacturing and retail has been doing since the beginning of time,” Elias said. “There is a sea of noise in the market. Walk into any retail store. It’s overwhelming from the options that exist. No one has really ever been able to stand out. When you walk in there isn’t always a brand that sticks out. There is differentiation and distinction. Mike Tyson’s name on the package is distinct.” Elias said the Tyson label generates a 15% to 20% price tag lift for the same product under a different brand. “Economically it makes a lot of sense for us,” he said. “Look at the gummies, Mike’s Bites. It’s Holyfield’s ear. It’s novel. People gravitate toward novel items. And it happens to taste amazing as well. It’s a great discussion point.” The company is looking to expand Tyson’s product offerings to vapes and other products soon. But Common Citizen isn’t rushing to license more celebrity brands. “When you’re tying up product in your facility and dedicating it to a license brand and not your own, there’s a risk,” Elias said. “For us, all the noise means we want to wait to see how some of these brands stabilize in other states before we make any decisions. Doesn’t matter whether it’s a celebrity brand or a well-known brand like Wana or Kiva.” Common Citizen produces and sells both popular out-of-statecreated brands Wana and Kiva in Michigan. Aardvark is going the other way. The company is in negotiations with an actor on an edible brand that Dulany believes will “be as big of news as Willie in our state.” The company plans to build a stable of celebrity brands across Michigan. “If too many show up and they are not represented correctly in the marketplace, it can get muddy,” Dulany said. “That’s why boots on the ground is so important. There aren’t a lot of celebrity brands that are going to work in the market, but it’s not about the brands, but who is marketing their brand. We know what people are looking for beyond just a name.”

Oakland Hills members OK new $104M clubhouse rebuild plan By Kurt Nagl

Members of Oakland Hills Country Club have approved a plan to finance $22 million of cost overruns to rebuild the clubhouse it lost in a fire nearly two years ago. The new $103.7 million financing plan for the project passed with 69% of members voting in favor, a club member confirmed to Crain’s. When the rebuild cost swelled, officials asked members to help cover the increases. The newly ap-

proved plan calls for a $7 million debt increase from the conceptual plan, a $15.6 million full-equity member assessment and an increase in monthly “master plan capital dues.” The clubhouse burned to the ground in February 2022. The club received $48.1 million in insurance proceeds — less than half the price tag of the rebuild. A major cause of the cost increase was additional site work, including moving dirt, sewers and utilities, which ac-

counted for $8.6 million, or 40% of the extra costs, club officials told members. The club has declined to comment on the project. The newly approved assessment will cost each member $18,500, with half due Jan. 31 and the remainder due Jan. 31, 2025. Unlike other assessments, this one is full equity and paid back to a member when they leave the club. In addition, “master plan capital dues” to service the higher debt

will cost each member $230 per month, a $65 increase from the previous funding model. The club also recently raised its one-time initiation fee from $75,000 to $95,000, according to a member. The club had 783 members as of last December. Two members told Crain’s ahead of the recent vote that they were frustrated with the increased budget for the project. The club has hit other bumps on the road to rebuilding, including

parting ways with Christine Pooler, a celebrated hire who stayed in the general manager role just a year and a half and left a few months after the fire. With approvals from members and the township, the next step is to begin construction. The rebuild was originally anticipated to be complete by summer 2025. A month after losing its clubhouse, Oakland Hills was awarded the 2034 and 2051 U.S. Open Championships. DECEMBER 4, 2023 | CRAIN’S DETROIT BUSINESS | 17

THE CONVERSATION

For Sandy Pierce, what comes after banking? Rest and reinvention When Sandy Pierce applied for the National Bank of Detroit management training program, she was told she'd never make it in management because she was too nice. Now, after a career in banking spanning over 40 years, Pierce is ready to take her next steps. She's been the senior executive vice president of Huntington National Bank’s Michigan operations since 2016. Under her leadership, Huntington Bank acquired TCF Bank in 2021. Early this year, Pierce was appointed to Michigan State University’s board of trustees. What’s next for one of the most powerful women in banking? A few months of rest, she said, though she plans to pivot her career in a different direction when she’s done with her break. This Conversation has been edited for clarity and style. | By Anna Fifelski Can you tell me about what led you to the position you’re in today? What are some accomplishments you’re most proud of? My proudest moment was at the age of 21 as a college graduate not allowing a recruiter to stop me from pursuing a career in banking. She opined I was too nice to make it in management. This really could have stopped me, but I refused to allow her comment to hold me back. I used that recruiter’s response as fuel to fervently pursue my aspirations. I also committed to going after my career goals, no matter what people told me or what barriers I would face. What are your plans for the future? Are you retiring? I am retiring after 45 years from banking; however, I plan to do something different. For now, I am focused on transitioning my direct reports, revenue segments and all of the regions I lead to those taking on these responsibilities. So, I am really busy until the end of the year. I want to add that even though I am leaving banking, I remain committed to Huntington Bank, to the city of Detroit and the great state of Michigan. I am not going anywhere, but I am going to take a breather for a couple of months. More to come. Do you anticipate staying in the banking industry? Absolutely not. I plan to decide what I want to do next, but it will be something different than banking. I am going to stay on my public boards — Penske Automotive Group, American

that something you could see yourself doing? Right now, I am totally focused on getting through this current term and working hard to reach our goals for the university. It is a challenge, and it will take some work, but I am honored and committed to my appointed position as a trustee at Michigan State University. I love all of our universities, but Michigan State holds a special place in my heart. My husband, children and my two sons-in-law graduated from there, and I would even put a lot of money on all six grandchildren going there. But I would also be happy if they went to Wayne State because that’s my alma mater. Just know that I’m always going to continue giving back to our schools and communities.

Sandy Pierce, senior executive vice president of Huntington National Bank’s Michigan operations

Axle and ITC, which I chair. I also chair the Henry Ford Health System Foundation and the Detroit Economic Club. I had the honor of being appointed to the Michigan State board of trustees in January of this year, so I am excited about my work with this board. With all this, I guess I am going to stay pretty busy. From a career standpoint though, I just want a few months to decide what that looks like. Do you have an idea now of what you want to do? I am excited about doing something different outside of banking. I will share details in 2024. Your MSU board of trustees term runs until 2029. . . .Can

you speak to anything you’d like to accomplish during that time? Over the past few years, Michigan State University has experienced a number of terrible crisis situations, but the school has persevered, nonetheless. As a board member, I would like to help create some stability for the MSU community. 2029 is a long way off. I am focusing on the now. What we do as a board to make sure the university is positioned as one of the leading institutions of higher learning is critical. I look forward to working with our board leadership to make this happen. I know it is incredibly early already in your term, but have you begun thinking about running for an additional term? Is

What’s something you like to do in your spare time? I enjoy spending time with my family and friends. Being with them brings me a lot of joy and happiness. I also love traveling to different places. But not just for the sake of traveling. I want to really understand other cultures, meet different people, try new things and then introduce others to what I experience. My favorite place to visit thus far is Croatia. This past August, my husband and I spent three weeks there with our kids and grandkids. When all the kids left, some customers who have become good friends over the years joined us. We just enjoyed quality time swimming, walking, relaxing, talking and listening to each other — sort of like having fireside chats. It was so great. We’re going to do this a lot more.

Read all the conversations at CrainsDetroit.com/TheConversation

Bloomfield Hills investment firm expands By Anna Fifelski

O2 Investment Partners, a Bloomfield Hills-based private equity firm, is seeing its portfolio expand with new acquisitions in Minnesota. Wisconsin-based Straightaway Tire & Auto, an automotive repair and service platform that is part of the O2 Investment portfolio, announced Nov. 29 that it had acquired Accurate Auto & Tire Service and Wayne’s Automotive. O2 Investment Partners manages 21 portfolio companies 18 | CRAIN’S DETROIT BUSINESS | DECEMBER 4, 2023

throughout the United States, including Vessco Water, which has a corporate office in Michigan, Alpha Precision Group, headquartered in Wyandotte, and more. Straightaway Tire & Auto and O2 Investment Partners did not disclose the terms of the deal in a press release. “The addition of Accurate Auto and Wayne’s will further strengthen Straightaway’s already robust presence in Minnesota,” Joe Vallee, a partner at O2 said in the press release. “Furthermore, the transactions high-

light our commitment to support Straightaway’s continued expansion by leveraging platform-wide resources to drive localized growth.” Straightaway Tire & Auto is a full-service aftermarket automotive repair and service platform with over 40 locations across Colorado, Florida, Maine, Minnesota, New Hampshire, and Wisconsin. The acquisitions of Accurate Auto & Tire Service and Wayne’s Automotive bring Straightaway Tire & Auto’s partners to a total of seven automotive service companies across the U.S.

“We’re very excited to welcome the teams at Accurate Auto and Wayne’s to the Straightaway family,” Jeff Matt, the division president of Straightaway, said in the press release. “They have each earned loyal customer bases over their decades in operation, and we look forward to working together to uphold their reputations for great customer experience.” O2 Investment Partners focuses on investing in lower-middle market B2B services, technology, and select industrial companies with high-growth potential.

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