Crain's Detroit Business, Dec. 13, 2021 issue

NEW CHALLENGE: Robert Lee aims for startup sensibility at Continental. PAGE 34

MONEY MATTERS: Meet Crain’s Notable Women in Banking.

PAGE 11

CRAINSDETROIT.COM I DECEMBER 13, 2021

New directions in Flint for a business pioneer

FORUM GOVERNMENT REFORM

Hagerman sells incubator building to tenant

BY TOM HENDERSON

Phil Hagerman lost a tenant — but sold him a building.

The historic and iconic Ferris Wheel Building on Saginaw Street in downtown Flint is a seven-story, 50,000-square-foot art deco building with a long history. Today, it houses the Ferris Wheel Innovation Center, a shared workspace and business incubator that is also home to 100K Ideas, a program that encourages would-be entrepreneurs to bring their ideas to life, offering help with mentoring, business plans, marketing and social-media outreach. It also hosts

PAGE 24

business-plan competitions, boot camps and demo days for startups.

The building reopened in 2017 after a $7.5 million buildout, including $1.5 million from the Michigan StraMore inside tegic Fund. For the previous Crain’s Michigan Business looks at 30 years, the only tenants of what’s new in the building Flint. Page18 had been pigeons. Built in 1930, the building originally housed the Gainey Furniture Co.; the Ferris Brothers Fur Co. moved in a few years later.

See FERRIS WHEEL on Page 31

FIND THE COMPLETE SERIES ONLINE: CrainsDetroit.com/crains-forum

VOL. 37, NO. 46 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

NEWSPAPER

CRYSTAL BALL

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Housing market, home prices likely to keep rising, but market shifts toward normalcy. PAGE 3

DALE G. YOUNG/SPECIAL TO CRAIN’S DETROIT BUSINESS

The Ferris Wheel building in Flint. | KURT NAGL/CRAIN’S DETROIT BUSINESS

DMC shutters kidney transplant program Patients left to seek alternative care

BY DUSTIN WALSH

Detroit Medical Center quietly ended its kidney transplant program last month, leaving at least 146 patients on its transplant wait list to seek care at other health systems.

The Detroit hospital system ended its program on Nov. 12, according to two sources who agreed to speak to Crain's on the condition of anonymity, after it discovered the primary nephrologist it had running the program was not properly certified with the nonprofit that manages the U.S.

transplant system, United Network for Organ Sharing.

Mohammad Alsawah is a nephrologist for Detroit-based Nephro-Care Md PLC, and through a contract with that provider, he was brought on to run the DMC program after its primary nephrologist leading the kidney transplant operations left the system. The timing of the hire — and why DMC did not confirm the physician’s certifications with UNOS before contracting him — are unclear.

See KIDNEY on Page 31

12/10/2021 11:54:47 AM

NEED TO KNOW

REAL ESTATE

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT ` 1ST OMICRON COVID-19 CASE CONFIRMED IN MICHIGAN THE NEWS: Michigan has joined the growing list of states to identify the omicron variant. The Michigan Department of Health and Human Services and the Kent County Health Department were notified Thursday of the state’s first case of the new variant of the virus that causes COVID-19. The initial detection of the omicron variant in Kent County was reported to the Michigan Disease Surveillance System on Dec. 3.

WHY IT MATTERS: The virus, first detected by scientists in South Africa before Thanksgiving, has now been identified in at least 21 states. The new variant appears to be as or more contagious than the current delta variant causing a massive rise in cases in Michigan in recent weeks.

` FORMER AMC HQ TO SEE REDEVELOPMENT THE NEWS: A developer growing its industrial presence in Detroit plans to demolish the former American Motors Corp. headquarters site for a new development, likely for an auto supplier, officials said. Kansas City, Mo.-based NorthPoint Development LLC will raze the AMC buildings and construct a 728,000-square-foot industrial facility, pending City Council and other approvals in a $66 million redevelopment.

ships from Elder Automotive Group of Troy and the Elder family. The nation’s second-largest new-vehicle retailer said Tuesday that it bought Elder Ford of Tampa to aid its growth in Florida, while it purchased Elder Ford of Troy and Elder Ford of Romeo.

WHY IT MATTERS: The headquarters building at 14250 Plymouth Road has been closed since 2010.

` TCF CENTER TO TAKE HUNTINGTON NAME THE NEWS: Detroit’s convention center has a new name for the second time in just more than two years. The 723,000-square-foot facility on Washington Boulevard has been renamed Huntington Place, the Detroit Regional Convention Facility Authority said.

WHY IT MATTERS: Long known as Cobo Center, the facility that hosts the North American International Auto Show and other large conferences and events was renamed TCF Center in August 2019 after then Detroit-based TCF Bank acquired the naming rights for $33 million over 22 years.

` THREE ELDER AUTOMOTIVE LOCATIONS SOLD THE NEWS: Lithia Motors Inc. has expanded its presence in Michigan and Florida, buying three Ford dealer-

WHY IT MATTERS: The deals adds further scale in Michigan for Lithia after the dealership chain bought Suburban Collection in April as part of a trend of family-owned auto retailers selling to big, publicly held chains.

` WINTER BLAST EYES MOVE TO ROYAL OAK THE NEWS: The popular annual Winter Blast event in downtown Detroit looks to be on the move. After Detroit officials last week canceled the 2022 event for lack of funding, organizer Jon Witz presented plans to Royal Oak officials on Monday. The city commission voted 7-0 Monday to support the move, the Daily Tribune reported.

WHY IT MATTERS: Winter Blast has taken place at Campus Martius in downtown Detroit since 2005. The 2021 event was canceled due to the coronavirus pandemic and it was announced on Dec. 1 that the 2022 edition would also be canceled due to funding challenges.

Eminem’s former mansion hits market again ` This opportunity comes once in a lifetime — at least until rapper Eminem’s former abode goes on the market again.

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The house, which was also owned by former Kmart CEO Charles Conaway, was built in 1988 and remodeled in 1993, according to property records.

It features six bedrooms and seven full and three half-baths, the listing says. There’s also a pool with a waterfall, a hot tub, a cabana, tennis and basketball courts, walking trails and a 2,000-square-foot guest house.

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696 2 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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PEOPLE

REAL ESTATE

Rich Studley on heading to ‘the sidelines’

NEARING A PEAK?

Wraps up 40 years at Michigan Chamber

BY CHAD LIVENGOOD

See ASSEMBLE on Page 32

See STUDLEY on Page 32

GETTY IMAGES/ISTOCKPHOTO

in 2020 signed to 300 Entertainment, for which Atlantic serves as a distributor. Detroit Rapper Tee Grizzley and Megan Thee Stallion are also signed to 300.

Koehler declined to disclose the financial terms of the deal. The deal includes a funded record label jointly operated by Assemble and Atlantic.

The move will allow Assemble, currently with two artists signed to its label, to bring more artists aboard.

“Historically, we’ve upstreamed artists,” Koehler said. “We’ve always been able to get the artists to a certain point, but we’ve had to hand them off because we don’t have the resources to get them to the global stage ourselves. We’re about to start signing a bunch (of artists). This is about to be a part of a broader infrastructure in the city that helps artists on their road to a global career.”

When Rich Studley joined the Michigan Chamber of Commerce staff 40 years ago, there was a popular bumper sticker in that time of auto plant closures, double-digit unemployment and high inflation.

“Will the last person leaving Michigan turn out the lights?

Since then, Studley said he has used that phrase as a guidepost in pursuing laws and public policies that govern doing business in Michigan.

“Our business Studley climate was so bad then, even Illinois was eating our lunch — and Indiana and Ohio were good competitors,” Studley said. “It was a challenging time.”

Today, challenges to Michigan’s economy persist, but there are “much better fundamentals” for the business community, Studley said.

After 13 years as president and CEO and four decades at the Michigan Chamber, Studley is retiring at year’s end and turning over the chamber’s corner office to a successor he groomed, Jim Holcomb, who has been a vice president and top attorney for chamber since 2008.

During his tenure, Studley has been a key player in virtually every major change in state law or regulations involving business and commerce.

In the 1980s, when he started as the chamber’s manager of tax policy and labor relations, Studley was in the trenches of the Michigan Chamber’s yearslong campaign to change the unemployment insurance system and rein in a workers’ compensation system believed to be rife with fraud.

In the ’80s and early 1990s, Studley worked under his predecessor, longtime Michigan Chamber CEO Jim Barrett, to shape property tax reform that culminated in the passage of Proposal A in 1994, capping property taxes and changing the way schools are funded.

That sea change in tax policy eventually led to the repeal of the much-despised Single Business Tax — which Studley often refers to as a “European-style” value-added tax — and eventually the elimination of personal property taxes on machinery and equipment and the adoption of a flat 6 percent corporate income tax in 2011.

“We’ve learned to be very patient and persistent,” Studley said. “...

Some of these battles evolve and take two or three skirmishes to sort things out — and then you get to the end of that process and you see the next challenge, the next opportunity.”

In his final two years as CEO, Studley has led the chamber through an economic upheaval from the coronavirus pandemic.

In 2022, housing prices still going up, but rocket ride may be over

BY ARIELLE KASS

“I WOULDN’T BE SURPRISED IF SPRING IS A LITTLE CRAZY AGAIN.” — Jeanette Schneider, president, RE/MAX of Southeastern Michigan

What will 2022 bring? After the frenzied housing markets of the past two years, experts say it’s something approaching normalcy.

While home prices will likely continue to rise, experts say, the pace of the increase will be lower than both 2020 and 2021. Still, there remain more buyers than sellers, and the supply of homes remains low.

“That dynamic isn’t going to change much in 2022,” said Jeanette Schneider, president of RE/ MAX of Southeastern Michigan. “I wouldn’t be surprised if spring is a little crazy again. The underlying conditions aren’t going to change.”

Millennials will continue to get into the market, Schneider predicted, and some older homeowners will decide to cash out and rent for a year or two, hoping that the market calms down before they’re ready to buy again.

From January through November, Schneider said, home values rose 12 percent — less than the 14 percent increase over the same period in 2020, but still high. She expects the 2022 increase to be in the 8 to 10 percent range.

Others agree that prices will continue to rise, though not as quickly as they have been. Alexandra Lee, an economist for Zillow Economic Research, said models suggest that in October 2022, prices will be 12.8

percent higher than the year before. The 2021 peak, she said, was in August, when prices were 18 percent higher year over year. With smaller increases in subsequent months, she said, metro Detroit had already “turned the corner” as far as price acceleration.

“Expect a slowdown,” Lee said.

“The foot is still on the gas pedal, but it’s easing up a little bit.”

Still, she said sellers will continue to keep the upper hand as inventory remains low.

That’s particularly the case for lower-end, entry-level housing, said Randy Repicky, market research manager for Real Estate One. See HOUSING on Page 32

ENTERTAINMENT

Assemble Sound partners with Atlantic Records

BY JAY DAVIS

A Detroit-based record label still in its infancy has reached a deal on a partnership with a major player in the music game.

Assemble Sound and Atlantic Records on Tuesday announced a new artist development partnership and joint venture. The deal gives Atlantic, once the home of Aretha Franklin, a presence in one of the world’s most influential and historic music cities, according to a release. Assemble, established in 2015, will serve as an external partner with an established team and facilities to discover and develop artists from the earliest stages of their careers, the release said.

“This is something that’s seven years in the making,” Assemble General Manager Garret Koehler said.

“We started having conversations with (Atlantic) a few years ago, and things really kicked into high gear

“IT’S GOING TO BE A MAGICAL COMBO, AND WE’RE GOING TO DO SOME AWESOME THINGS WITH ATLANTIC.” — Garret Koehler, general manager, Assemble Sound

over this past summer. I think it’s a big deal for Assemble, a big deal for the artists we work with in every capacity, and we hope it’s a big deal for Detroit.”

Assemble, with a staff of 11 employees, works with artists in the early stages of their career. The company has four revenue streams: sync licensing, brand partnerships, a record label and a management company. Sync licensing, or pitching music for television shows, films and advertisement, has been Assemble’s strongest source of revenue, according to Koehler, and it has clients ranging from Hulu and ESPN to Apple and HBO. The record label and management company have served as a jumping off point for artists, Koehler said.

Singer-songwriter and Michigan resident Sam Austins signed to Atlantic earlier this year. Brooklyn-born, Detroit-raised rapper whiterosemoxie

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REAL ESTATE INSIDER

Detroit’s first high-rise apartment building for sale — again More than a century ago when it opened, the Pasadena Apartments on East Jefferson Avenue was the tallest residential building in Detroit.

Kirk While these PINHO days it’s nowhere close to holding that title, someone else could be holding the title to the building soon.

Last month, the 11-story building and its 170 apartments at 2170 E. Jefferson Ave. hit the market for an undisclosed price.

Although that number isn’t being made public, we can take an educated guess at the building value by doing a little reverse engineering. That can be accomplished by dividing two figures that are disclosed in an offering memorandum by Detroit-based listing broker O’Connor Real Estate — the net operating income and the capitalization, or cap, rate. With an NOI of approximately $1.14 million and a cap rate of 6 percent, that puts the value at about $19 million, or roughly $111,900 per unit.

This marks at least the second time in the last few years the building has gone up for sale; in 2016, it was listed for $11.9 million but never sold.

The building, constructed in the early 1900s, has 55 studio apartments averaging 500 square feet and renting for $800; 101 one-bedroom

The 11-story Pasadena Apartments building at 2170 E. Jefferson Ave. was built in 1902. | CRAIN’S DETROIT BUSINESS

units renting for $1,000 a month, or $1.42 per square foot for 700 square feet, on average; and 14 two-bedroom units renting for $1,200 per

month, or about $1.33 per square foot in the 900-square-foot units, per the most recent OM. I’ve asked about the discrepancy

between the sizes reported five years ago when it hit the market, but haven’t gotten a detailed answer.

Back then, the ownership said the

one-bedroom apartments ranged from 550 to 650 square feet and the two-bedrooms were 650 to 750 square feet. Rents have gone up considerably in that time period, as well.

James Tumey, the broker on the listing — both in 2016 as well as now — says ownership has renovated the building since it took over more than a decade ago but there is still more “meat on the bones,” meaning a buyer could put more money into the building and then raise the rents.

The Renaissance-style building — owned by an entity called Pasadena Investments LLC, which is registered to Scot Turnbull of Cynex Enterprises Inc. in Southfield — was designed by Mortimer L. Smith & Sons and added to the National Register of Historic Places in 1985. Today we know Mortimer L. Smith & Sons as SmithGroup.

Cynex bought it in 2009 for $2 million, according to CoStar Group Inc., a Washington, D.C.-based real estate information service.

Tumey said in 2016 that although the building was nearly fully occupied when Turnbull bought it, only 30 percent of the tenants were actually paying rent because the rest were living there without leases.

Tumey also noted the building’s proximity to the new small-format Meijer Inc. grocery store called Rivertown Market as well as where Dan Gilbert has spent no less than $28.5 million buying up office and parking space, plus developable land.

Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

ENERGY

U.S.-China tensions, supply chain backlog could delay DTE solar plan

BY CHAD LIVENGOOD

DTE Energy Co.’s construction next year of two new solar power arrays in Michigan could be delayed into 2023 due to the ongoing U.S.-China dispute over China’s human rights abuses, a DTE executive told Crain’s.

Silicon components used in the manufacturing of solar panels sold in the U.S. are produced in the western Chinese region of Xinjiang, where the U.S. State Department is challenging what it calls China’s “cruel and inhumane” forced labor practices.

The Biden administration’s crackdown on China’s mass detention of religious minorities has effectively halted the flow of solar panels and other renewable energy components into the U.S. “We’re having problems getting panels in due to the international disputes between the U.S. and China,” said Trevor Lauer, president and chief operating officer of DTE Electric.

Solar panels are “caught up in the whole shipping mess also,” Lauer added. “But more than anything, we have panels that are sitting outside of the country waiting to come into the country right now — and we cannot get those into the country.”

Completion of the two arrays — a 120-megawatt solar park in Washtenaw County and a 200-megawatt solar array Montcalm County — could be

Silicon components used in the manufacturing of solar panels sold in the U.S. are produced in China. | BLOOMBERG

pushed into 2023 as a result of the international commerce dispute, Lauer said.

The reliance on Chinese-made solar panels is one potential hiccup in DTE Energy’s continued expansion into solar power, which the Detroit-based utility is shifting to for future investments as the cost of electric generation from wind turbines has increased.

DTE announced Tuesday that its renewable energy production increased 40 percent this year compared to 2020.

The 535-megawatt increase came from three new wind farms coming online in the spring and a solar array starting to produce electricity before the end of the year, Lauer said.

In 2022, DTE’s Meridian wind farm

straddling the borders of Saginaw and Midland counties is expected to come online, generating 225 megawatts from 77 wind turbines.

“After we build the Meridian wind farm, I think essentially we’ll be done building wind in the state of Michigan,” Lauer told Crain’s. “... What we’re seeing is the overall cost of solar is lower than the overall cost of wind.”

However, DTE may increase the electric generation capacity of existing wind farms by replacing 1.5-megawatt turbines with 3-megawatt turbines. These upgrades are known in the industry as “repowering” wind farms.

But, Lauer cautioned, less costly solar power generation “will depend on what happens with China to con-

tinue to be able to flood the U.S. with solar.”

Since the U.S. government intervened over China’s force labor practices, the cost of solar panels from China has risen 15 percent, Lauer said.

“So I think it’s a matter of where does solar and wind shake out relative to the ability of China to continue to be the manufacturer and supplier of solar components for the world,” Lauer said. “A lot of it will hinge on that.”

DTE’s growth in renewable energy has been fueled by its MIGreenPower program, a voluntary premium electric customers can pay to have their power sourced from renewable energy sources.

More than 43,000 residential customers and 450 commercial and industrial customers have enrolled in the MIGreenPower program. Business customers include all General Motors Co. offices and manufacturing facilities within DTE’s Southeast Michigan electric service area, Lauer said.

A “very large hospital system” is expected to officially join the MIGreenPower program next week, Lauer said.

Because the utility company is enrolling 500 customers a week in the MIGreenPower program, DTE plans to issue a request for proposals in early 2022 for additional solar energy projects.

“We’ll also look to see if we can

partner with third parties, but the need is going to continue,” Lauer said. “Everything we’ve built, we’ve already sold out through MIGreenPower. So we need new assets to support new customers coming onto the program.”

The Michigan Public Service Commission has approved DTE for adding 431 megawatts to the 1.8 million megawatt hours tied to the clean energy program.

DTE Energy’s plans to build more solar arrays comes as the company and Jackson-based Consumers Energy Co. are trying to beat back legislation in Lansing that would open up the solar energy production market to smaller operators that want to build arrays producing less than two megawatt hours of electricity.

“Size and scale really matters once you start to build these things,” Lauer said. “If I can get them to this 150 megawatt size, I can bring the cost down significantly, relative to building smaller ones.”

Lauer said the “driving force” for DTE residential customers signing up for the MIGreenPower program is they can buy into harnessing energy from the sun without the do-it-yourself investment.

“You don’t need to put holes in your roof, you don’t need to sign a 20-year contract pledging your home to anything,” Lauer said.

Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

4 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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One of the exhibits inside the Holocaust Memorial Center is a WWII-era boxcar used by the Nazis at the time to transport Jews and other “undesirables” to concentration camps. | HOLOCAUST MEMORIAL CENTER

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A $15 million gift to the Holocaust Memorial Center from the family of its board treasurer, Alan Zekelman, and its company, Zekelman Industries, will help ensure the center can continue its efforts to prevent another Holocaust well into the future.

The donation is the single largest ever made to the center and the lead gift in a $100 million comprehensive campaign launched this year. It will support the center’s goal to raise a $65 million board-designated endowment.

The rest of the campaign will fund the center’s operation over the next five years, update its core exhibit to include personal stories from Holocaust survivors and expand virtual education opportunities.

Alan Zekelman, a Bloomfield Hills resident and past board president of the Holocaust Memorial Center, said the institution is significant to his family.

“We have a Holocaust history. My late father’s parents, brothers and sisters were all killed in the Holocaust,” he said. “That’s a big motivator for our involvement.”

Zekelman Industries, based in Chicago, is a steel pipe and tube manufacturer with factories in Plymouth, several other states and Canada. Alan Zekelman serves as its director.

Other members of the family — including CEO Barry Zekelman and Director Clayton Zekelman, who is also president of MNSi Telecom — are longtime supporters of the Holocaust Memorial Center, both individually and through their company.

The most recent donation follows a $10 million commitment made by the family in 2006-07 to help pay down debt tied to the initial construction of the center and led the organization to rename its Farmington Hills site as the Holocaust Memorial Center Zekelman Family Campus.

The center’s purpose is not just to memorialize, Zekelman said. It’s also

The Holocaust Memorial Center’s Zekelman Family Campus. | HOLOCAUST MEMORIAL CENTER

Alan Zekelman

Eli Mayerfeld

to educate through school tours and visits from the general public about the most studied genocide in human history.

“By having students exposed to it ... they can become much better at seeing injustice in the world,” Zekelman said.

“Hate is one of the flaws for human beings because we’re prone to it,” but we need to be able to control it, he said.

“One way (to do that) is to be aware of what other humans have done.”

The family is also hoping the gift will inspire others to give, he said.

Beyond the board-designated endowment, the campaign will provide $19 million in operating funds for the next five years for the center, which is operating on an annual budget of about $4 million, Rabbi Eli Mayerfeld, CEO of the center, said.

The campaign will also support an expansion of virtual learning opportunities, special exhibits at the center and

traveling exhibits that will go around the state, along with updates to the center’s core exhibit in 2023.

As part of the updates to the core exhibit, the center will incorporate personal stories from Holocaust survivors, Mayerfeld said.

When the museum was designed 20 years ago, there were many Holocaust survivors living in Michigan, he said.

“Unfortunately, there are fewer and fewer. We need the exhibit to lift up their voices in a permanent way.”

The Holocaust Memorial Center has collected nearly 1,000 interviews from local Michigan survivors, very few of whom are still alive, Mayerfeld said.

In a recent survey of Millennial and Gen Z residents in each state conducted by the Claims Conference — a group negotiating for compensation and restitution for victims of Nazi persecution and their heirs — 62 percent of 200 people surveyed in Michigan said they “totally agreed” something like the Holocaust could happen again today. Holocaust and genocide education, now required in Michigan, are vital in enabling people to make personal connections that define their roles and responsibilities in preventing future atrocities, Mayerfeld said.

“Our mission is to engage, educate and empower — that’s what we’re being asked to do with this gift.”

6 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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NONPROFITS

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Pope Francis Center Bridge Housing Facility resident entry. | FUSCO, SHAFFER & PAPPAS INC.

Pope Francis Center secures land, $6M gift to support homeless housing

BY SHERRI WELCH

The Pope Francis Center has finalized its purchase of just over 5 acres of vacant property on Detroit’s west side and plans to break ground on its new bridge housing facility for the chronically homeless in early 2022.

The Julia Burke Foundation is funding a $6 million grant — which builds on a $7 million grant from the California-based organization in the spring — which will help cover the increased costs of construction materials and labor, said the Rev. Tim McCabe, executive director of the center.

Jerry and Marilyn Burke, who established the foundation in memory of their daughter, “are people who understand the vision in what we’re doing as a real solution to a real problem,” McCabe said. “They would like to see this approach templated across the country.”

Pope Francis Center has been developing plans for the facility since 2019, following McCabe’s visits to 22 other shelters around the country to benchmark best practices for helping get the chronically homeless off the streets and ready to go into housing.

The project marks a departure from the permanent supportive housing the U.S. Department of Housing and Urban Development funds as what it believes is the best path to ending homelessness.

HUD provides tens of millions of dollars to the Detroit Continuum of Care each year to be allocated to housing supports for the homeless.

The Pope Francis Center project will likely not qualify for the government funding, given its focus on transitional housing, said McCabe. It’s working to raise the money for the project itself.

With this latest grant, it’s raised $24 million toward the now $30 million cost to construct the new outdoor shelter and transitional housing facility, McCabe said. The project has also garnered $1 million gifts from Ford Motor Co., Magna Corp., the Piston Group, Pulte Charitable foundation, Midwest Province of Jesuits and the Bartush Family Foundation.

Pope Francis Center finalized the purchase of the property near Warren and I-96 from the city for $250,000 in November, McCabe said. It expects its request for a zoning change to go before the Detroit City Council early next year and to begin remediation on the site, which used to be home to an engine plant, later in the winter. If all goes as planned, the site will open in mid-2023.

The block-long development of connected buildings will include 40 studio apartments to provide “bridge” housing for 90-120 days, along with a host of psychological, McCabe addiction, social and job-readiness services to help the chronically homeless prepare to move into housing. It will also include a heated, outdoor shelter space for those who aren’t yet ready to go inside, along with a cafeteria, gymnasium, library, classrooms, and a health clinic. Once the campus is operational, residents of the surrounding Core City neighborhood will have access to the health clinic, recreational facilities including an art studio, as well as lifeskills and job readiness courses and computer lab, McCabe said.

Fusco, Shaffer & Pappas Inc. in Ferndale is serving as architect on the project, and Plymouth-based JS Vig Construction Co. is general contractor.

Pope Francis Center was the second shelter project to make major announcements, following Neighborhood Service Organization’s Dec. 1 groundbreaking on an $11 million emergency shelter and health care clinic for the homeless and surrounding community on the city’s east side at Mack and Gratiot avenues. The city of Detroit is providing $4.7 million in grants toward the costs of the NSO shelter and health center, which are expected to open within 18 months.

Pope Francis Center had initially targeted a location roughly a half mile from the NSO site for its bridge housing facility but shelved the project after community pushback, McCabe told Crain’s in April.

“My hat’s off to NSO to what they are trying to accomplish on the east side,” McCabe said. “But we serve a different population.”

Pope Francis Center’s new site will serve chronically homeless people who’ve been on the street for a year or more.

“We’re really looking to help the people who are hardest to house by this comprehensive approach to making sure they have the support system they need to make this move into housing,” McCabe said.

Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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All State Fastener would like to extend a big thanks to our supply chain and our GM counterparts for the teamwork that made this possible.

THE NEWS YOU NEED MOST, DELIVERED RIGHT TO YOUR INBOX. Sign up at crainsdetroit.com/newsletters and stay in the know!

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PROUD TO BE A PART OF MCLAREN

DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 7

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COMMENTARY

Congress, Michigan small businesses need your help

BY SHANIECE BENNETT

FOR CRAIN’S DETROIT BUSINESS

EDITORIAL

Panic sets bad precedent in lawmaker NDA deals

U

rgency may be warranted as Michigan lawmakers scramble to approve publicly funded incentives to lure some looming development projects to the state.

Secrecy is not.

But that’s what’s happening as the Michigan Economic Development Corp. asks state legislators to sign nondisclosure agreements to discuss potential projects linked to job-creation incentives. And it’s a bad precedent for elected officials to set.

The NDAs signed by some lawmakers emerged this week as the House moved quickly to approve a package of bills that would create three new incentive funds for the MEDC to market to companies looking to relocate or expand in Michigan.

Presumably, that includes General Motors, which is seeking to build a new battery plant that state lawmakers are loathe to lose after Ford took its enormous $11 billion electric vehicle investment down South.

The anxiety is understandable. Business leaders, lawmakers and economic development officials have been under scrutiny for months over why Ford didn’t invest here. It’s a complex issue with no single answer.

The NDAs “are just more of a protection WHAT’S the MEDC,” Sen. DIFFERENT THIS for Ken Horn, R-FrankenTIME IS ASKING muth, told Crain’s.

Credit Horn, chairPUBLIC man of the Senate Economic and Small OFFICIALS TO Business DevelopLITERALLY SIGN ment Committee, for at least acknowledgAWAY THEIR ing that he signed an RIGHT TO SHARE NDA. House speaker Jason Wentworth, HOW PUBLIC R-Farwell, refused to MONEY IS BEING even address the matter.

SPENT. “I won’t get into exactly what I signed or didn’t sign,” Wentworth told reporters Wednesday.

As we pointed out in a recent editorial, Ford’s bombshell announcement is an opportunity to rethink Michigan’s economic development strategy in a holistic way. Money still

talks, of course, but so do more practical matters: Do we have the labor pool to support more manufacturing? Will workers want to move here? Are our schools, roads, infrastructure up to par?

Instead, we get Groundhog Day: A project is proposed, details are vague, panic ensues, tax breaks pour in.

Four House bills approved this week would create and set rules for the MEDC to establish the Strategic Outreach and Attraction Reserve or SOAR fund and two funds that would funnel down from it: one for making development sites shovel-ready and another specifically targeted toward critical industries.

The bills do not contain appropriations, though lawmakers are expected to dip into $8 billion in unspent federal stimulus funds or the state’s $2.4 billion tax surplus to fill the funds with cash for potential job-creation deals.

NDAs can be a necessary and effective tool in sensitive negotiations. Representatives of the MEDC and the Michigan Manufacturers Association told Crain’s they were important to lay out for lawmakers the gravity of the need for incentives to compete.

“There’s a lot at stake,” said John Walsh, CEO of the MMA, who acknowledged that such deals with elected officials are unusual.

“The MEDC may have wanted to share more information so that members could get more comfortable with the nature of the transaction.”

Fair enough. What’s different this time, though, is asking public officials to literally sign away their right to share how public money is being spent. The state Legislature is the last place we want to see NDAs become commonplace.

By forcing lawmakers into a contract of secrecy, the MEDC — a quasi-public body whose governing board is appointed by the governor — is asking for a blank check and a whole lot of trust.

The entire process needs an overhaul.

Deals should not be wagging the dog. Lawmakers need long-term, bipartisan agreement — difficult in these term-limited times, but not impossible — on an economic development strategy not propelled by panic.

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.

GETTY IMAGES

Michigan’s Legislature swiftly passed a package of economic development bills this week. | DALE G. YOUNG

If your neighborhood is anything like mine, folks started planning Thanksgiving menus and stringing up holiday lights the morning after Halloween — a sure sign of our shared eagerness to celebrate, feast, and gift after a rough and ofShaniece ten heartbreaking couple Bennett is of years. founder and Local and state econoPrincipal of Accutrak mies are again largely Consulting and open for business and a Accounting good swath of U.S. workServices in St. ers, here in Michigan and Clair Shores. across the country, are seeing steady paychecks.

But for many small business owners like me, the twinkling lights and holiday enthusiasm can’t mask the feeling that a winter storm is gathering and that small businesses across the country will need a hand — not a handout — to survive it.

So, why are we getting the pre-holiday jitters? It’s pretty simple: challenges we small business owners always face when competing with big companies for products, employees, and customers are being compounded by the ongoing pandemic, rising prices, supply chain disruptions, worker shortages, and higher labor costs.

Most big companies have the cushion and wherewithal to roll with price hikes, product scarcity and hiring obstacles. Most small businesses like mine don’t.

The accounting, financial management and payroll tax services small business I founded 12 years ago was thriving before the pandemic struck. We were winning significant government contracts, working with our loyal clients in the construction industry, and helping the mom-and-pop businesses that make up a small but important part of our clientele.

I rely on a team of professionals with specialized skills and certifications to keep my business running, and, frankly, during the pandemic I didn’t know if or how I could keep them on the payroll. Losing them would devastate the business I’d worked so many years to build. There were days when I

felt like I was in a deep hole with no way out.

Thankfully, I had access to a lifeline — a pandemic emergency disaster loan from the Small Business Administration. The COVID-19 Economic Injury Disaster Loan or COVID EIDL program is specifically designed to support small businesses as we recover from the pandemic’s disastrous impact and ongoing challenges. These low interest, long-term loans of up to $2 million can be used to help pay our operating expenses, including payroll and rent or mortgages, and other ordinary business expenses and debt.

My COVID EIDL loan of $290,000 allowed me to keep my essential employees on the payroll, giving me the ability to continue competing for government contracts and serve my clients with the professionalism they expect and rely on.

I’m so thankful for this support and the tremendous difference it is making for me and countless other small businesses that form the economic backbone of communities like St. Clair Shores, where my businesses is located, and so many others across Michigan and the nation.

But this crucial support is coming to an end. The COVID EIDL program, which is the last major pandemic emergency capital program for small businesses, is set to end on Dec. 31, 2021. Without action, this essential program could expire with billions of dollars left unused at a time when small businesses are confronting mounting obstacles. As a member of the Goldman Sachs 10,000 Small Businesses Voices community, I’m calling on Congress to extend the COVID EIDL deadline into 2022 and increase access to capital for small businesses more broadly so small business owners can access this much-needed capital and continue supporting their employees, customers, and communities.

Two years into the pandemic, progress has been made on some fronts, but small business owners seem to be facing new challenges at every turn. We haven’t fought this hard and come this far only to falter as we are finally seeing light at the end of the tunnel.

But, without a helping hand from our government, that’s exactly what could happen.

This holiday season, we ask customers and Congress to support small businesses here in Michigan and across the U.S.

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.

8 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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OTHER VOICES

Michigan, it’s your choice on COVID vaccination Michigan, you have a choice: to vaccinate, or not.

Michigan recently reached a milestone less than one year after the introduction of a COVID vaccine in our Dr. Natasha fight against this Bagdasarian is pandemic. The chief medical vast majority — executive with more than 70 perthe Michigan cent — of MichiDepartment of ganders 16 and Health and Human Services. older have received at least their first dose of the COVID-19 vaccine. We’ve also successfully vaccinated more than 133,000 children ages 5-11, or almost 16 percent, a remarkable feat just a few short weeks after the authorization of the childhood vaccine.

Michigan, you hold the choice to get vaccinated. To those who have chosen to do so: Thank you. Thank you for taking this step to protect our communities and each other. To those who haven’t, that’s your right.

My only plea for you is to keep in mind that every choice has its own consequences.

The data from vaccinating more than 198 million Americans has shown that the side effects of getting vaccinated are minimal. The side effects from COVID-19 vaccination may feel like flu and might even affect your ability to do daily activities, but they should go away in a few days. These are signs that your immune system is doing exactly what it is supposed to — produce an immune response so you have protection against this disease. Severe side effects are extremely unlikely.

The consequences of choosing not to be vaccinated, however, can be severe or life threatening. Michigan has surpassed 500 cases per million, a milestone we are absolutely not celebrating. And on average, every day 13 people die in Michigan from COVID-19. Vaccinated people are 10 times less likely to be admitted to the hospital and five times less likely to be infected than unvaccinated people, and unvaccinated Americans have died at 11 times the rate of those fully vaccinated.

If you do get sick with COVID-19 and are unvaccinated, you the run the very real risk of developing unpleasant and, in some cases, long-lasting symptoms. You may lose your sense of smell and taste for weeks. You may have difficulty breathing. You may experience extreme fatigue or difficulty doing everyday tasks like simply walking upstairs or even thinking clearly. You may face a side effect known as “long COVID” which can be so debilitating that you need to apply for disability medical coverage. It’s possible to be hospitalized for months and face a mountain of medical costs upon discharge. And, even more devastatingly, even with a mild case of COVID, you may pass the illness on to a loved one who runs the risk of developing complications or even dying.

Beyond the immediate risk of hospitalization and death, there are also the societal consequences of choosing not to vaccinate. You are passing the risk associated with your decision on to others: those who be unable to

get vaccinated, young children, and of states nationwide. Variants such as the immunocompromised. You are omicron are ripe for emergence and contributing to an environment in circulation in communities with low which the virus that causes COVID-19 vaccination rates. Details about omicontinues to mutate and develop

BY VACCINATING YOURSELF AND YOUR more deadly variants. You are CHILDREN, AND BY GETTING YOUR contributing to c o m m u n i t i e s BOOSTER, YOU ARE MAKING THE CHOICE that can’t move TO FIGHT TO END THIS PANDEMIC, on from the grip of this pandemic. INSTEAD OF PROLONGING IT. We are now facing the omicron variant, which has cron are still emerging, and while it been detected in several countries appears to be more transmissible, we around the world, including across are still learning about the severity of the border in Canada and in one-third disease it causes and whether thera-

peutics like monoclonal antibodies will be as effective.

Omicron will not be the last variant we are faced with. Our best defense against the development of worse variants is ensuring that as many of us as possible are vaccinated. By vaccinating yourself and your children, and by getting your booster, you are making the choice to fight to end this pandemic, instead of prolonging it.

Yes, Michigan, you have a choice whether or not to get vaccinated. But every action has a reaction. And with the weight of this pandemic, which is stretching the resources of our health care system once again, you may not like the consequences.

BLOOMBERG

BY DR. NATASHA BAGDASARIAN

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PRIORITY SCHOLARSHIP DEADLINE DEC. 15, 2021 Use code WSU2022 to waive the 2022 application fee. wayne.edu/admissions To experience campus life, scan here or visit wayne.edu/campus

WARRIOR STRONG

DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 9

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Heather Brolick

Mishelle Comstock

Patti Judson

Stefanie Kimball

ChoiceOne Bank

Bank of Ann Arbor

Jeanne Richter Farmers State Bank of Munith

Shelby State Bank

Independent Bank

Helda Saad

First Independence Bank

Beth Correa Flagstar Bank

Jenny Meier

Anita Fox

Michigan Department of Insurance & Financial Services

Joanne Rau

Mi BANK

Chelsea State Bank

Kelly Walters

Elizabeth Zuchelkowski

First State Bank

First Independence Bank

Congratulations to these exceptionally talented women who have been recognized by Crain’s as Notable Women in Banking.

These outstanding women are great leaders in their organizations and their communities. They each deserve recognition for the positive impact they create with everything they do. The banking industry is fortunate to have so many talented women leading the way in banks across the state. The Community Bankers of Michigan salutes these exceptional women on behalf all the banks in Michigan!!!

cbofm.org 517-336-4430

The women featured in this special report oversee billions of dollars in assets at banks across Michigan. They lead mortgage relief programs, lending programs for minority-owned businesses and payroll protection program loan programs. At their banks, they’ve spearheaded DEI efforts, digital initiatives, community affairs and ESG (environmental, social and governance) rollouts. Through it all, they’ve mentored the next generation of women in banking and given back to the communities where they live and work.

METHODOLOGY: The leaders featured in this report were selected from nominations by a team of Crain’s Detroit Business editors based on their career accomplishments, track record of success in the field and effectiveness of their efforts, as outlined in a detailed application form. The honorees did not pay to be included on the list. Notable Women in Banking was managed and written by Leslie D. Green. For questions about this report, contact Special Projects Editor Amy Bragg: abragg@crain.com.

SPONSORED BY

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HEATHER BROLICK

JULIE BURZYNSKI

MISHELLE COMSTOCK

BETH CORREA

KEONA COWAN

ME

Senior Vice President

President, UIF Corp.

President and CEO

Director of Corporate Responsibility

Executive Vice President of Lending

ChoiceOne Bank, Sparta

Senior Vice President, University Bank, Ann Arbor

Shelby State Bank, Shelby

Flagstar Bank, Birmingham

Invest Detroit, Detroit

Exec Ente Ope

Mishelle Comstock joined Shelby State Bank as an auditor in 1993.

Since then, she has worked in just about every area of the bank. Promoted to president and CEO in 2015, she is responsible for $380 million in assets and 112 employees at 10 offices in six West Michigan counties.

Under Comstock’s leadership, Shelby has added three locations, an insurance agency, an investment arm and a title agency. Her bank also closed nearly $30 million in Paycheck Protection Program loans and temporarily waived bank fees.

“She has shown strong leadership and sincere dedication to the community that she works and lives in,” said Ryan Briegel, chair of Shelby Financial Corp. and Shelby State Bank.

Comstock is chair of the Community Bankers of Michigan board, a member and past president of the Shelby Rotary Club and founder of Women Who Care, which raises funds to benefit post-secondary education.

When leaders at Flagstar Bank are looking to embark on new paths, they often seek out Beth Correa.

She led the bank’s new Community Affairs & Quality Department in 2015 and established the Flagstar Foundation in 2017. Correa was also integral to developing the bank’s diversity, equity and inclusion initiative.

“She owns the Flagstar Foundation. She did the heavy lifting to bring it to fruition. She understands how to take something from concept to completion, how to build networks to get things done, how to lead with strength and humility,” said Flagstar Bank CEO Sandro DiNello.

Under her leadership, her team established an employee assistance fund for those financially impacted

by COVID. Staff contributed $45,000 to the fund that has so far helped more than 250 employees. They also allocated $2 million to support minority business owners and to help close the technology gap in underserved communities. She was also part of the internal PPP team helping the bank to provide more than $380 million in loans.

“Keona is an indispensable asset to our small business community and works tirelessly as a champion for their equitable access to the capital it takes to operate and grow a successful business,” said Michael Shaw, program director for the Hudson-Webber Foundation.

Keona Cowan is responsible for Invest Detroit’s commercial, industrial, small business and real estate lending for an annual loan portfolio of $80 million to $100 million. Under her direction, the mission-driven organization exceeded its deployment goals by 10 percent in 2020 to mitigate the impact of COVID-19 on small businesses and landlords. Previously, Cowan was a senior portfolio management officer at Bank of America.

Named a Woman of Excellence by the Michigan Chronicle, Cowan coaches and provides mentorship to Black youth in the community and serves on the boards of the Detroit Housing Commission and Central Detroit Christian Community Development Corp.

Julie Burzynski looks for creative ways to find religiously acceptable banking instruments and products for the bank’s Muslim clientele. She manages $35 million to $40 million in annual revenue and is responsible for 100 employees.

One of Burzynski’s recent career wins was gaining regulatory and investor approval on Declining Balance Partnership, a financing model that allows the organization to partner with customers on real estate transactions in order to stay within Islamic asset financing rules.

“She has helped educate and assure third parties, such as mortgage insurance companies and title companies, which are so necessary to having a robust marketplace, understand and participate in the faith-based programs UIF offers,” said Tami Janowicz, executive vice president and chief administrative officer of University Bank. “Most importantly, Julie has built a respectful and diverse team of individuals who come together to serve an underserved market.”

© 2021 JPMorgan Chase & Co.

Prior to her current role, Heather Brolick was president, CEO and director of Community Shores Bank, a publicly traded institution located just north of Grand Rapids with $197 million in assets.

Brolick was integral to that bank’s acquisition by ChoiceOne in April.

“She kept our teams united and working together, allowing both organizations to better serve our customers today in Muskegon and Ottawa counties,” said ChoiceOne CEO Kelly Potes. “With Heather’s continued leadership on our senior management team, our combined organization will allow us to expand our collective expertise into the communities we serve …”

Brolick now manages payroll and benefits in excess of $26 million for ChoiceOne, which has $2.1 billion in assets.

In addition to her work at the bank, she is past chair and a current member of the Harbor Hospice board, a member of the Mercy Health Physician Partners-West Michigan board and chair of the Michigan Bankers Workers Compensation Fund.

Investing in Women’s Success At JPMorgan Chase we strive to help women across the country realize their full potential and develop a solid foundation for professional and economic growth. We’re committed to the empowerment and advancement of women, both inside and outside of our firm.

Congratulations all of the 2021 Notable Women in Banking honorees on their well-deserved recognition.

jpmorganchase.com/wotm

12 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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Senior Vice President & Senior Wealth Strategist

President and CEO

Executive Vice President and COO

State of Michigan, Lansing

Huntington National Bank, Birmingham

Legacy Trust, Grand Rapids

Bank of Ann Arbor, Ann Arbor

“Director Fox has great insight with keeping our banks safe, and she does so in a manner where it feels like we have a partnership instead of an oversight.

She truly understands the importance community banks have in their respective communities and the important role they play in supporting the members of their communities,” said Michael Burke, President, ChoiceOne Bank Lapeer.

Anita Fox is responsible for a $67 million budget and 365 employees.

At the start of the COVID-19 pandemic, her team at DIFS developed and implemented the MiMortgage Relief Partnership with 230 financial institutions to help keep state residents in their homes.

They not only extended the program into 2021 but worked through the partnership to help Michiganders affected by flooding.

When protests for racial justice increased in 2020, Fox established workgroups to address diversity and inclusion within the department and the industries DIFS regulates.

Under Jill Garvey’s direction this year, sales teams generated new relationships and investment management fee revenue that significantly bolstered assets under management.

Garvey’s experience has made her a sought-after commentator on the stock market, economic trends, tax strategies, financial and estate planning and other topics for CNBC, Bloomberg TV and other media. She also co-leads teams in the development of white papers and other content for existing and potential clients.

“There are very few people who blend an ability to connect to clients on a personal level with the technical expertise necessary to help solve the most complex planning issues. Jill Garvey is widely recognized as one of those people both inside the Huntington family and beyond,” said Dan Griffith, national practice lead and director of Wealth Strategy for Huntington National Bank.

Prior to joining Huntington, Garvey was regional director of wealth planning at Comerica and a vice president at Merrill Lynch.

Since becoming Legacy Trust CEO in 2017, Tracey Hornbeck has led the bank to grow assets under management by 82 percent.

Hornbeck now manages about $1 billion.

“A seasoned banking executive, she has come into this position with the background and expertise that has grown this organization to new heights. In doing so, she has earned the trust and respect of her staff, the board of directors and Legacy Trust clients,” said Legacy Trust Chair Steve Heacock, president and CEO of Grand Rapids Whitewater.

Previously, Hornbeck was senior vice president and regional chief financial officer at Fifth Third Bank.

Hornbeck is also active in the community. She serves as chair of the John Ball Zoo, secretary of the West Michigan Center for Arts and Technology board, treasurer of the Grand Rapids Symphony board and a member of the Economic Club of Grand Rapids and Michigan Bankers Association.

In 1996, Patti Judson started her career at the then-new Bank of Ann Arbor as a branch manager. Judson has since worked in a variety of roles and been integral to growing the bank’s assets to $2.5 billion.

Judson, who is also responsible for 102 employees and mortgage production that exceeds $100 million, was crucial to the success of Bank of Ann Arbor’s acquisition of First National Bank in Howell.

“Patti Judson epitomizes our all-important helping spirit. She’s an excellent and highly motivated manager and leader, but an even better person,” said Tim Marshall, president and CEO of Bank of Ann Arbor.

In addition to her work at the bank, Judson is active in the community. She serves on the Alpha House board and as audit chair of the Washtenaw Community College Foundation and vice chair of the Michigan Bankers Association Service Corp. board.

Comerica Bank, Detroit

Soon after Comerica hired Megan Crespi, the pandemic began shutting down businesses and negatively affecting customers and staff. Crespi’s team of 1,800 people successfully transitioned a little over a third of Comerica’s 7,700 employees to working from home, which meant distributing new equipment and enhancing security of systems and protocols.

“She quickly implemented and executed several programs across all of our operations and provided digital resources for customers to continue efficient servicing. Among these include work from home, return to office, Paycheck Protection Program, the enterprise rollout of new video and collaboration tools, facilities-related enhancements for our essential workers, and digital capabilities for deposit account opening and consumer loans,” said Curt Farmer, chair, president and CEO of Comerica Inc. and Comerica Bank.

Knowledgeable.

Invaluable.

And now, Notable.

Congratulations to Crain’s 2021 Notable Women in Banking, especially Patti Judson, Bank of Ann Arbor’s Executive VP and COO. We’re honored to have her on our team of the World’s Best Bankers.

Member FDIC

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DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 13

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KIMBERLY KERSTEN

STEFANIE KIMBALL

CYNTHIA KOLE

JENNY MEIER

LINDA NOSEGBE

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Senior Vice President and Director of Business Banking Michigan

Executive Vice President and Chief Risk Officer

Executive Vice President and COO

President

Comerica, Detroit

Independent Bank, Troy

First National Bank of Michigan, Kalamazoo

Mi Bank, Bloomfield Hills

Man Reg Bank

Kimberly Kersten has held increasingly greater leadership positions since joining Comerica 31 years ago.

In her previous role as group manager, her team ranked in the Top 5 in the country for loan production.

Now Kersten is responsible for an estimated $3.4 billion in loan commitments and deposits and manages nearly 50 group managers, relationship managers and lending assistance.

She also participates as a mentor for young women at Comerica and initiated its business banking efficiency committee.

“Kim’s greatest attribute is her incredible desire and ability to support and cultivate the success of her colleagues. Her connection to people, expertise in business banking and her overall knowledge built on over three decades of work in the financial industry offer valuable assets to clients and the numerous decisions and challenges they face,” said Mike Ritchie, Comerica Bank Michigan Market president.

As head of the enterprise risk management team, Stefanie Kimball is responsible for $4.5 billion in assets, the estimated $3.2 billion in residential mortgages Independent Bank manages for investors and its activities through the Community Reinvestment Act. She also recently led the development and publication of the bank’s initial environmental, social and governance report.

“Stefanie is highly respected within and outside our company, including an excellent reputation with our banking regulators,” said William Kessel, president and CEO of Independent Bank.

In 2020, she was asked to serve a three-year term on the Community Depository Institutions Advisory Council of the Federal Reserve Bank of Chicago.

Kimball supports the community as a board member of Junior Achievement of Southeast Michigan board and the Board of Visitors for Oakland University’s School of Business Administration.

Vice President, External Affairs Market Manager Southeast and National Community Impact, Investments & Lending

Cynthia Kole, who manages $860 million in bank assets, led efforts to keep staff and customers safe during the time of COVID. She also created and initiated First National’s private banking program.

“Cindy’s management style and can-do attitude are second to none.

While managing a large group of employees and functions, her results consistently exceed expectations,” said First National President and CEO Daniel Bitzer.

“She is a leader within the bank and the community. Her mentorship of others has resulted in promising careers for many individuals.”

One of Kole’s mentees was named one of Independent Community Banker Association’s 40 under 40.

Kole serves on several corporate committees, including as chair of First Nationals marketing group, as well as in the community. She is past president and development committee chair for Gilmore Keyboard, board member and chair of the area YMCA and a member of the Kalamazoo Symphony and Bells Brewery boards.

Jenny Meier was chief revenue officer at Bank of Birmingham and responsible for $300 million in assets prior to joining Mi Bank in 2019 as its first president.

Shortly after Mi Bank opened, she and her team found themselves accelerating its digital transformation to keep clients and employees safe in the midst of a pandemic. Meier was also integral to achieving profitability projections of $150 million in assets earlier than expected.

Meier was recently appointed to the board of the Michigan Bankers Association Service Corp. And as a member of Impact100 Oakland County, she helps evaluate nonprofits for grant funding.

“Jenny’s commitment to her co-workers, clients and the community make her the ideal person to help Mi Bank to become a significant contributor toward the effort to make Southeast Michigan a great place to live and work,” said Mi Bank Chair and CEO Rob Farr.

Comerica Bank, Detroit

“Linda’s expertise and ability to establish and build powerful relationships with community partners, schools, business units and colleagues has not only become crucial in our execution of strategic community outreach initiatives, but they quickly became important assets during the pandemic,” said Irvin Ashford Jr., chief community officer for Comerica Bank.

Under Linda Nosegbe’s leadership, Comerica executed 189 financial projects in 2021, up from 135 projects in 2020, serving 11,655 people in low- and moderate-income communities. In 2020, the bank provided $1.6 million in donations and grants to philanthropic organizations in the area.

She also manages $25 million in community development financial institution and minority depository institution program funding. In 2021, her team directed $12 million toward small and micro businesses in low- and moderate-income communities.

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When you spend your days making a difference, people notice. Huntington congratulates Jill Garvey for being recognized as one of Crain's Notable Women in Banking. Thank you for inspiring us to look out for each other, our customers, and our communities, every day.

Member FDIC. ®, Huntington® and Huntington. Welcome.® are federally registered service marks of Huntington Bancshares Incorporated. ©2021 Huntington Bancshares Incorporated.

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TERRAH OPFERMAN

LISA PATTERSON

Managing Director and Michigan Region Manager for Middle Market Banking

Chief Originations Officer

JPMorgan Chase Commercial Banking, Bloomfield Hills

Terrah Opferman started at JPMorgan Chase 17 years ago as an analyst and now leads one of the bank’s largest commercial banking regions. She is also a leader of its Michigan Market Leadership Team and a local executive sponsor for its Women on the Move group.

“Despite the last year and a half, Terrah never stopped delivering first-rate service to her clients and valuable guidance to team members, while also making an impact in her local community. It’s a pleasure to work alongside Terrah and see her succeed,” said Tony Maggiore, managing director and segment head for Midwest and Canada, Middle Market Banking at JPMorgan Chase Commercial Banking.

In addition to her work with JPMorgan Chase, Opferman serves on the boards of Business Leaders for Michigan, Goodwill Industries of Greater Detroit and the Downtown Detroit Partnership.

CONGRATULATIONS HEATHER

Home Point Financial Corp., Ann Arbor

Under Lisa Patterson’s leadership, six-year-old Home Point has seen 189 percent growth in loan originations from 2019 to 2020. At the same time, its quarterly revenue quadrupled. In the first six months of 2021, the finance company funded more than $55 billion in loans, and account executives averaged $70.5 million a month in loan volume.

In 2020, Housing Wire named Patterson one of its 2020 Women of Influence.

“Lisa leads with a 360 vision, engaging in a wholistic view of leadership that makes sure that partners from all aspects of the organization are engaged and aligned. Her style is not a singular focus, making her highly respected and effective both externally and internally,” said Home Point Chief Credit Officer Kathy Herig.

on being named a

2021 Crain’s Detroit Business Notable Women in Banking AWARD HONOREE!

HEATHER BROLICK

Senior Vice President, HR

Your #1 choice.

BACK 2 BACK HONOR

2021 & 2022

JOANNE RAU

JEANNE RICHTER

President and CEO

President and CFO

Chelsea State Bank, Chelsea

Farmers State Bank of Munith, Munith

Joanne Rau is “a phenomenal leader, thinker, manager and teammate,” said Chelsea State Bank Chair John Mann.

Before joining the bank in 2019, Rau was senior vice president of business banking for Fifth Third Bank, where she worked for more than 15 years. Rau is not only Chelsea State Bank’s first female president, but she is also the first leader who isn’t a member of the founding family. She was promoted to CEO in January 2021.

She is responsible for $415 million in assets and 57 employees, for whom she has an open-door policy.

In 2020, Rau led the bank’s threeyear strategic plan, which included adding new positions, developing a succession plan and implementing a digital transformation plan.

In addition, she serves on the boards of Girls on the Run Southeastern Michigan, 5 Health Towns and Community Bankers of Michigan.

The Michigan Bankers Association named Jeanne Richter its 2021 Banker of the Year. Richter, who manages $100 million in bank assets, served as chair of the association in 2020.

“Jeanne Richter has been so very instrumental in the success of this bank and so dedicated to, involved with and passionate about the banking industry throughout her career. She is respected by and influential with her peers in the state of Michigan and throughout the U.S.,” Craig Goodlock, chair of Farmers State Bank.

Farmers State Bank was acquired

by Fenton-based Fentura Financial Inc. in a deal completed Dec. 1.

Richter assumed the role of Chief Risk Officer following the merger.

Richter is a member of the American Bankers Association advisory committee.

“In a small community bank, an individual must wear many hats and the scope of work is much greater than that of a larger financial institution. The 2021 Banker of the Year designation is one that is given by her peers who have witnessed her dedication and commitment to the industry,” said Eric Eishen, president and CEO of Sturgis Bank & Trust Company and Sturgis Bancorp Inc.

CRAIN’S

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Congratulations to Stefanie Kimball!

On being named one of Crain’s Notable Women in Banking.

DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 15

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HELDA SAAD

MARY TOWNLEY

KELLY WALTERS

MELINDA WILNER

Assistant Vice President, Executive Project Manager and Director of Mortgage Lending Operations

Director of Homeownership

Chief Risk Officer and General Counsel

Executive Vice President, COO

ELIZABETH ZUCHELKOWSKI

Michigan State Housing and

First State Bank, St. Clair Shores

United Wholesale Mortgage, Pontiac

CFO

Development Authority, Lansing

Kelly Walters is responsible, in part, for most of First State Bank’s operations, including legal and regulatory compliance, credit and market risk, vendor management, information technology, insurance and collections.

More specifically, she helps the bank avoid financial losses, minimize legal expenses, review and guide the development of legal instruments and assist human resources with employment-related matters.

Since COVID, she has been involved in helping residential and commercial clients who have been negatively impacted by the pandemic remain current on their loans through deferrals, PPP loans and other relief.

“The broad scope of her responsibilities requires an ability to communicate and work effectively with a diverse and complex set of individuals and issues. Kelly excels in this environment,” said First State CEO and President Gene Lovell.

In the past 18 months or so, Melinda Wilner has been responsible for more than $290 billion in mortgages. Wilner, who leads more than 7,000 employees in operations, underwriting, and information technology, was integral to UWM going public in January 2021.

She has garnered numerous awards over the years including being named a 2016 HousingWire Woman of Influence, a 2017 HousingWire Vanguard and one of National Mortgage Professional’s 2018 Most Powerful Women.

“Melinda is my go-to person for almost all major decisions at UWM,” said President and CEO Mat Ishbia. “Melinda lives in the weeds of the business and will challenge her teams to think through every step of a process. She is dynamic when it comes to helping UWM accomplish goals, while delivering top-notch products and services to our clients.”

First Independence Bank, Detroit

First Independence Bank, Detroit

Prior to 2020, First Independence Bank was lagging behind in technology, even using a typewriter to cut checks for vendors. Once the pandemic struck, Helda Saad worked with the bank’s CTO to pivot to a completely digital system. She also led a plan to lower overhead expenses in the mortgage division.

Saad worked with the First Independence chairman and CEO and relationships she built with five Minnesota-based banks in the aftermath of George Floyd’s killing to open a branch in Minneapolis-St. Paul — the bank’s first branch outside of Detroit.

“On top of her drive, the qualities that impress me the most about Helda are her zest for giving back to the community, her educating students on financial literacy and her eagerness to find ways to use her gifts and passions to help underrepresented demographics fulfill their dreams and financial goals,” said Rizzarr Founder and CEO Ashley Williams.

Mary Townley is responsible for the state’s single family loan programs, mortgage credit certificates, property improvements and all federally funded counseling awards and foreclosure prevention efforts. In 2020, those funds totaled more than $1.25 billion.

Under her direction, the authority has in the last year expanded its down payment assistance program for underserved communities. Her team also designed its Michigan Homeowner Assistance Fund.

“Mary Townley is one of those rare individuals that seems to have an endless capacity for more work and projects,” said MSHDA CFO Jeff Sykes. “Mary manages the authority’s homeownership programs, which is in a constant state of tweaks and improvements.

Yet when she hears about a homeownership need or shortfall, she’s off to design a new program.”

“Beth Zuchelkowski is one of the rare individuals who will do whatever it takes within and beyond the defined scope of her responsibilities to get the job done. As a CFO in community banking, Beth is an example for all, and I have confidence in her leadership and stewardship,” said Kenneth Kelly, chairman and CEO of First Independence Bank.

Zuchelkowski, who is responsible for $350 million in assets, was integral to successfully converting First Independence’s core banking platform. As one of the project managers, she helped coordinate mapping, training and implementation.

Previously, she helped open and grow Paramount Bank and worked as CFO of wireless provider SpeedConnect.

CONGRATULATIONS JENNY MEIER ON BEING CHOSEN AS ONE OF CRAIN’S NOTABLE WOMEN IN BANKING!

www.mi.bank Member FDIC

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12/3/21 2:23 PM

12/9/2021 6:30:02 AM

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The Detroit Symphony Orchestra has named Eric Rönmark as its next president and CEO. | DETROIT SYMPHONY ORCHESTRA

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Rönmark chosen from more than 180 candidates

BY SHERRI WELCH

The Detroit Symphony Orchestra has chosen for its next president and CEO an executive who has led many of the orchestra’s most prominent projects.

Erik Rönmark, vice president and general manager of the orchestra, will succeed Anne Parsons as president and CEO of the DSO effective March 7.

He was chosen from a pool of more than 180 candidates from around the country by a committee of board, orchestra and staff members and led by DSO Chairman Mark Davidoff, who is president and CEO of the Fisher Group, and director emeritus Chacona Baugh.

Davidoff said that when Rönmark joined American saxophonist Branford Marsalis on the Orchestra Hall stage with a saxophone of his own during a recent fundraiser, it was clear he was the right person to serve as the orchestra’s next leader.

“How cool is that, to be standing on stage in front of your audience, playing with a world-class musician without a bead of sweat on your forehead?” Davidoff said, noting Rönmark had earlier worked with Marsalis, who started as a jazz musician, on the classical repertoire.

“After knowing Erik for 10-plus years and a yearlong search process, I really knew we had the right guy,” Davidoff said.

Rönmark, 44, stood out for his role in guiding the current trajectory of the DSO, his familiarity with the Detroit community, commitment to the progressive growth of the orchestral music field and dynamic relationship with Music Director Jader Bignamini, the DSO said.

“We’re so excited. You couldn’t have orchestrated a better outcome,” Davidoff said.

Rönmark led the music director search that culminated in bringing Bignamini to Detroit and was part of the executive team that stepped in when Parsons took leave as she went through a particularly aggressive cancer treatment.

The DSO board has named Parsons president emeritus. She announced her retirement in April after 17 years and returned from medical leave in September. The

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Davidoff

Parsons

permanent title recognizes the transformational impact she has had on both the DSO as an institution and on the community served by the DSO. She will remain with the organization through November 2022 to ensure a seamless transition.

“As we round the corner on Anne Parsons’ legacy, we needed to identify a leader who can take what Anne has built and propel it to the next level,” Davidoff said.

“In Erik, what we have is ... a leader who has dedicated his entire career to the DSO, who is internationally recognized for all he brings to the orchestra segment,” with knowledge of everything from orchestra management to the repertoire to education, Davidoff said.

Rönmark had a lead role in devising and implementing the DSO’s digital presence, Davidoff said.

He has been a central player in some of the DSO’s biggest innovations of the past decade, including serving on the task force that led to the DSO’s free “Live from Orchestra Hall” webcasts, overseeing the development and expansion of the DSO’s live-streaming capabilities that enabled it amid the pandemic to keep the music playing in a largely virtual 2020-2021 season.

Rönmark’s programming has also yielded a diverse repertoire mix on stage, the DSO said. Offstage, he has helped lead the development of the DSO’s comprehensive diversity, equity, and inclusion strategy.

During the course of more than 16 years with the DSO, Rönmark has brought innovation in programming, technology and presentation, DSO’s chairman said. Rönmark was named among the 2016 class of Crain’s Detroit Business 40 Under 40.

Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 17

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CRAIN’S MICHIGAN BUSINESS: FLINT

BACK TO NATURE

ALS

Looking for eczema treatment, entrepreneur formulates success

` So pass Flint

` Lo club

PAGE 23

‘T

Lo 10 clu

MOUNTAINS TO MEALS

TOM HENDERSON/CRAIN’S DETROIT BUSINESS

BY T

Tony Vu outside his MaMang food stall at the Flint Farmer’s Market.

Son of Vietnamese immigrants uses passion for cooking to scale business in Flint `BY TOM HENDERSON Eight years ago, Tony Vu had a

tough choice. He wrestled with it for months. The son of immigrants from Vietnam fleeing from war, should he return to his home town of Flint and cook food for a living, or should he remain in Peru and keep mountain climbing?

He was passionate about mountain climbing, and quite good at it. He had close friends there who were passionate about it and good, too.

But he was also passionate about Flint and passionate about cooking Vietnamese food.

Flint won.

“I was at a crossroads in Peru. Should I come back or climb mountains? It was a once-in-a-lifetime opportunity to be part of the rebirth here,” he said, sitting at a table at the Flint Farmers’ Market, a few feet from his popular Vietnamese food stall, MaMang.

“We have a strong community here. Everyone looks out for each other. It’s an incredible place to have a dream.”

Vu is dreaming big, now. He is negotiating with the Uptown Reinvestment Corp., a nonprofit economic-development organization affiliated with the Flint & Genesee Chamber of Commerce, to get land next to a proposed new state park, where he wants to build a food hall of about 4,000 square feet for the Flint Social Club. It would serve as an incubator for would-be food entrepreneurs and a venue for them to sell their food as they grow their businesses.

The plan is for three 40-foot shipping containers to be retrofitted to serve as commercial kitchens, substantially reducing the cost of building kitchens in the adjacent brick and mortar food

“WE HAVE A STRONG COMMUNITY HERE. EVERYONE LOOKS OUT FOR EACH OTHER. IT’S AN INCREDIBLE PLACE TO HAVE A DREAM.” — Tony Vu, entrepreneur

hall. A fourth container will be used to offer bar service.

The retrofitting and construction of the food hall will be done

by Flint-based Siwek Construction. Bryce Moe, Siwek’s president, is a member of the social club’s board and is its secretary/ treasurer.

In October, the federal government approved 501(c)3 nonprofit status for the club.

Vu said a focus of the incubator will be to help women and people of color carve out niches in a sector currently dominated by white business owners in a city with a large Black population. He hopes to break ground in the spring and be open in the summer.

“Just over 10 percent of dine-in restaurants in downtown Flint are represented by minority ownership, and zero percent are owned

by Blacks, who make up 54 percent of the (city’s) population,” he said. “I want to remove barriers of access to food entrepreneurs.”

Vu founded the social club five years ago to mentor new and would-be chefs. Over the years it has held pop-ups for new food entrepreneurs at various locations and events around town.

See COOKING on Page 22

18 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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ALSO IN THIS PACKAGE ` Son of Vietnamese immigrants uses passion for cooking to scale business in Flint. PAGE 18

` Construction of new $22 million children’s health center underway in Flint. PAGE 20

` Lottie Reid keeps 100-year-old jazz club humming. THIS PAGE

` Brothers launch accounting, financial services and logistics firm. PAGE 22

‘THE HEART AND SOUL OF FLINT’ Lottie Reid keeps 100-year-old jazz club humming

TOM HENDERSON/CRAIN’S DETROIT BUSINESS

BY TOM HENDERSON

There may be no better example of a hardscrabble survivor in the hardscrabble city of Flint than the Golden Leaf Jazz Club, which celebrated its 100th birthday on Oct. 3. Tucked just south of downtown on Harrison Street, unseen by the traffic flowing just a block away on the main thoroughfare of Saginaw Street, the Golden Leaf is the last icon of the once thriving Floral Park neighborhood, a small but vibrant Black community that included barber shops, grocery stores, pharmacies and a theater — and the Golden Leaf, which bills itself as a jazz club but has eagerly provided a showcase for soul music, funk, hip-hop and rhythm and blues, too.

Mirroring what all too frequently happened to Black communities in New York, Detroit and elsewhere, urban development — in this case the building of I-475 freeway, a business loop allowing I-75 drivers to bypass downtown — tore up the neighborhood. The section that went through Floral Park opened in 1973, running north from I-75 to the eastwest freeway of I-69 that ran just south of downtown.

I-475 wiped some of Floral Park out completely and separated the rest from downtown. Businesses closed and buildings were torn down, leaving litter-filled lots sprouting weeds. In 2014, one of the last remnants of the neighborhood, Clark Elementary School, built in 1913, was demolished, leaving the Golden Leaf as the sole survivor of Floral Park.

Opened in 1921 by Magnus Clark as the Maple Leaf, the Golden Leaf is a members-owned club, with a yearly cost of $85. Most of those members are Black, but white members are welcome, and many events are open to the public, including an open-mic night on Wednesdays and outdoor concerts in the side yard that became popular during the pandemic.

The club survived urban renewal and is surviving COVID restrictions.

The joint even survived Prohibition, the music replaced by a billiard hall and barber shop until the booze started flowing again.

Ironically, decades of racism helped the club thrive. In 1929, the Industrial Mutual Association, which provided health benefits to employees at Flint’s auto manufacturers, built the Industrial Mutual Association auditorium in downtown Flint. It was the center of the city’s athletic and entertainment events until holding its last show in 1979.

For many years, whites attended

Lottie Reid, manager of the Golden Leaf Jazz club. The club celebrates its 100th anniversary this year and is the last remnant of Flint’s historic Floral Park neighborhood. | TOM HENDERSON/CRAIN’S DETROIT BUSINESS

A newly painted outdoor mural at Golden Leaf Jazz Club honors jazz history. | TOM HENDERSON/CRAIN’S DETROIT BUSINESS

events in the evening, with Black patrons only allowed to attend a second show after midnight.

Just a mile or so away, the Golden Leaf packed in a Black audience during normal evening hours, and it became a regular stop for such star entertainers over the years as Dinah Washington, Diana Ross, Stevie Wonder, Dizzy Gillespie and Sammy Davis Jr. Another notable attendee was Malcolm X, the Black activist and a leader of the Nation of Islam, a national Muslim movement for African Americans that gained notoriety

in the 1960s.

In 1992, Lottie Reid became the club’s fifth manager, a move that was hardly the extension of a logical career path. She was a telephone operator who spent three decades with Michigan Bell, AT&T and Ameritech and was a longtime member of the club. One night she was sitting at the end of the bar, having a drink or two, or perhaps even three, she said, when the man next to her happened to mention that the current manager wanted to retire.

In what she says was a moment of

inspiration, Reid immediately approached the manager and told him she wanted the job. She got it and for the next two years ran the club and held down her full-time operator’s job before retiring.

The Flint Public Arts Project, a 501(c) 3 nonprofit that has funded the creation of about 150 murals throughout Flint in recent years, is based in the Dryden Building in downtown Flint. The building’s owner, Phil Hagerman, frequents the Golden Leaf Jazz Club and pitched the nonprofit earlier this year about getting a mural painted on the club’s new wooden fence, which lines the yard where the club hosts outdoor shows in good weather.

The Arts Project hired a local artist, Fenton-based Kevin Burdick, to paint the mural, which includes large images of Ella Fitzgerald, Louis (Satchmo) Armstrong and Miles Davis.

“Kevin asked me what I wanted painted on it and I said, ‘nothing psychedelic,’” joked Reid.

She said there are about 300 members of the club. It did have to shut down indoor performances and bar service for months after COVID hit, but when warmer weather arrived, she began arranging outdoor shows.

The club is open indoors, now.

When there’s no one performing, folks can usually be found watching sports on TV. Every Wednesday night is open-mic night, with local entertainers singing or playing along with the house band, Eclipse.

Hagerman said he has been going regularly to the club for two years.

“The music is good and Lottie is charming. A good friend introduced me to her,” said Hagerman. “What Lottie brings to the table is the table is the heart and soul of Flint. She brings the melting pot. Black, white, old, young. From straight-laced to bikers. You see 80-year-olds out there dancing with 20-year-olds.”

Hagerman says the club is one indication of how, since the water crisis, “Flint has become a much kinder town, the kindness of longtime residents who care for each other.”

Reid is on a fundraising campaign to repair the pock-marked blacktop driveway and parking lot, holding raffles, selling hot dogs and Polish sausages and, says Reid, “We’re accepting any and all donations.”

Contact: thenderson@crain.com (231) 499-2817; @TomHenderson2

DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 19

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SPONSORED CONTENT

Vaughn Arrington, president of Human Fliers, with Jackie Grant, former president of MorningSide Community Organization at Ronald Brown Academy during a Delta Dental-sponsored parade through Detroit’s MorningSide community.

Impacting Detroit’s most at-risk communities

COURTESY OF DELTA DENTAL

Margaret Trimer ABOUT GRIT “Grit” is a monthly forum for stories about people who possess uncommon work ethic, drive and passion. The content is produced

by Crain’s Content Studio, the marketingstorytelling arm of Crain’s Detroit Business, and sponsored by Delta Dental of Michigan. Subscribe to the “Grit” podcast on Apple Podcasts and Spotify.

Vaughn Arrington, the president of Human Fliers, is committed to equity and access to healthcare Vaughn Arrington is an entrepreneur, a mentor, a social worker and a community organizer who’s passionate about equity in oral healthcare. Yet, his pathway to success was far from easy — Arrington is a returned citizen after serving a 10-year prison sentence for a robbery at age 16.

After completing his sentence, Arrington studied social work at Marygrove College. He built relationships with Detroit City Council and politicians including Mayor Mike Duggan and the late former Wayne County Sherriff, Benny Napoleon, who offered him opportunities and acceptance.

Today, he is the president of the Detroit-based grassroots company, Human Fliers, a door-to-door canvassing service that raises awareness for a variety of issues, including oral healthcare, on behalf of Delta Dental for high-risk communities. Arrington recently

shared his inspiring story with Margaret Trimer, vice president of strategic partnerships for Delta Dental of Michigan, Ohio and Indiana, on the seventh episode of Delta Dental’s podcast, “Grit.”

“Most of our staff [at Human Fliers] are from the communities we work with,” Arrington said. “That’s where the juice comes from — we are talking to the people in the community from the voices of those who are from that community. That’s the tool that gets the job done.”

• Connecting with local health departments and FQHCs (outpatient clinics that qualify for reimbursement under Medicare and Medicaid).

• Developing campaigns that cater to a range of languages and cultures.

• Marketing intiatives and outreach through block parties, outreach in schools and delivering door-todoor messaging.

Through Arrington’s partnership with Delta Dental, he visits schools and neighborhoods to educate families about the importance of oral healthcare and the Healthy Kids Dental Medicaid program. His work includes:

Recently, Human Fliers led a “trunk-or-treat” with Matrix Human Services on Halloween to provide much more than candy. Arrington says they reached 500 families living in the 48205 ZIP code and provided toothbrushes, toothpaste and warm coats. Arrington’s goal for next year’s event is to reach 5,000 Detroiters.

• Implementing health fairs, events and discussions to better address and understand community needs.

“[48205] has had the lowest performing schools, highest level of poverty for a ZIP code and the

highest murder rate per capita in the city of Detroit,” Arrington said.

The Human Fliers team is gearing up for more partnerships in 2022 with organizations like Brilliant Detroit, a family support network for high-need neighborhoods. They are eager to support the Brilliant Detroit programming centers with ongoing dental supplies, reading materials and dental workshops for kids.

“That’s the beauty of working with Delta Dental — it’s not this competitive force — it’s more about everyone working together and making sure that dental health is received,” Arrington said. “It’s not about the dollar, it’s about health as a community, and that’s something that Detroit really, really suffers from not having.”

Vaughn Arrington is one of the guests featured on “Grit,” produced by Delta Dental in partnership with Crain’s Content Studio.

DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 21

CRAIN’S MICHIGAN BUSINESS | FLINT

A FAMILY AFFAIR

Three brothers, with help from a ‘village’, launch accounting, financial services and logistics firm

BY TOM HENDERSON

MBA. He was a business manager for the Genesee Intermediate School It takes a village to raise a child, District from 2006-2016, then was a goes the cliché. The John L Group manager at a General Motors plant in Inc., a startup accounting, financial Flint, overseeing more than 420 manservices and logistics firm owned by ufacturing employees and 13 superthree brothers, is the metaphorical visors. He resigned in January to join child. The village is the city of Flint, the John L Group.

Before helping launch the compawhere a wide array of entrepreneurial support services has helped the ny, Jay, who has a bachelor’s degree company get started and quickly in organizational communications from the University of Michiprosper.

“We got a lot of free services the gan-Flint, was a manager at Royal first six months,” said Antonio Brown, Oak-based RPM Freight Systems LLC. the CEO. “It really does take “My blood brothers? I a village.” can’t think of better people Founded in June 2019, to work with,” said A.C. the company is approach“To be in this position is ing revenue this year of $1.5 the best possible situation million and moved into I’ve ever found myself,” said headquarters in a promiJay. nent building on Saginaw The company was named Street, downtown Flint’s in honor of their late matermain street. The building, nal grandfather, John L. best known for housing the Melissa Brown Smedley.

Legal Services of Eastern The Browns say they wanted to Michigan, is directly across the street from the Flint and Genesee Chamber create a company that valued his of Commerce, which helped the hard work, integrity and duty to family. company find space to lease.

Their parents divorced in 1989 “A.C. said we needed to do something as a family,” said Jay Brown, re- when they were young. Their mother, ferring to Antonio, who is better who got custody, often worked two known by his initials. A CPA, A.C. and three low-paying jobs to keep founded an accounting firm in 2013, food on the table.

When she got divorced, Smedley CPA & Associates PLLC, which he merged into the new company. It was had just retired after 30 years as a mathe only black-owned CPA firm in chinist at General Motors. “Here he was looking forward to enjoying reGenesee County.

Jay is chief sales officer and Luther tirement and, whoops, here were Brown Jr. is chief operating officer. these kids to look after. He was literLuther’s wife, Melissa Brown, rounds ally our caretaker,” said A.C. He watched the boys every week, out the family theme as chief marketing officer. She is also the interim Monday through Friday, and somecommunications director for the city times on Saturdays when their mothof Flint, writing all communications er picked up extra hours. “He’d alby Mayor Sheldon Neeley, and creat- ways be doing things to let you know ed the city’s water-progress-report he loved you,” said Luther.

That lasted for four years, until he website.

The group’s logistics business was disabled by a stroke.

The brothers say they inherited owns no trucks of its own but matches customers who need things hauled some of their taste for business from with trucking firms with excess ca- great-grandfather Ivory Stocker, who was a well-known entrepreneur on pacity.

Luther, a former Marine, has an Flint’s North side, owning a hotel, a

COOKING

From Page 18

On the first Thursday of each month in good weather, new food entrepreneurs sell their food at the pavilion outside the farmers’ market.

The last one this year was Oct. 7.

Because Vu has a food license there, he is able to rent the outside space and kitchens for club members.

In July, Gov. Gretchen Whitmer appeared in Flint to announce that the state plans to create a new state park there, using money from the American Recovery Plan. It would be the first state park in Genesee County, the only county in Michigan without land managed by the state’s Department of Natural Resources.

When completed — no timetable has yet been discussed — it will become Michigan’s 104th state park.

The park will be on the north side of downtown along the Flint River, on

a former industrial site known as Chevy Commons, and will connect to local neighborhoods, businesses, and institutions, such as the University of Michigan-Flint, Kettering University and the farmers’ market.

The $26.2 million investment in the park would come from $250 million in funding proposed by Whitmer to address a backlog of needs in state parks and trails across Michigan.

In September, Michigan Senate Minority Leader Jim Ananich (D-Flint) announced more than $2 million from the state budget for fiscal year 2022 for community-based programs in Genesee County, including $375,000 for the Flint Social Club to provide comprehensive training and mentoring for food entrepreneurs.

Vu hopes to raise a total of $750,000 to fund the buildout and launch and has had extensive ongoing discussions with area nonprofits to help hit that goal. He said he will build the food hall one way or another, one

A.C. Brown (left), Luther Brown and Jay Brown of John L Group. | JOHN L GROUP

roller rink, a gas station and 12 or so rental properties.

About that village Members of the village that helped raise the John L Group from an idea to a fast-growing revenue generator include: ` The Small Business Development Center at Kettering University. Harry Blecker, the SBDC’s senior business consultant, said Luther Brown reached out to him in September 2019. Luther and A.C. had full-time jobs and wanted advice on business-plan development and market research for their startup. “They were very good clients who had the discipline and perseverance to meet their goals,” said Blecker, who said the brothers participated with him for 20 hours over 35 sessions. “They did their homework.” ` Marcus Rankin is vice president of the asset-development group at Metro Community Development, a CDFI nonprofit in Flint, which focuses on economic development, place or another, but prefers it to be adjacent to the new park.

“We’re hopeful the project will come together. We are very supportive of the Flint Social Club,” said Tim Herman, the president of the URC. “It’s really a cool project.”

Successful negotiations for Vu to get control of the land, which is owned by the URC, will involve getting grant funding from a nonprofit Herman declined to name. He expects the nonprofit to decide on whether or not to approve a grant early in the new year.

Tenants in the Flint Social Club will pay rent on a commission basis, eliminating the need for up-front rents.

The plan is for the food hall and kitchens to be neighbors with the new headquarters of the Flint Watershed Council and the new headquarters for Kayak Flint, which rents kayaks and conducts river tours, shining a much better light on Flint water than it has seen in recent years. Food

job creation and increasing the availability of affordable housing. “We make loans to small businesses that don’t quite fit the traditional credit box,” he said. He was introduced to the John L Group early in 2020 when it was working with the SBDC on refining its business model. In March that year, the company was ready to formally launch and Rankin approved a loan of $25,000. It was hardly an auspicious time for a startup.

“They obviously had no idea a pandemic was coming. To their credit, they managed it pretty well. They’ve done amazing considering,” he said.

“They’ve been relentless in their process to be successful. And it was nice to see their name go up on a building downtown. They showcase the ecosystem we’re developing in Flint, making sure we’re leveraging all the services to make sure these startups thrive. It does take a village in Flint with all the challenges we’ve faced.” ` Brianna Mosier is director of organizational development for the Flint and Genesee Chamber of Commerce. Among other things, she

oversees executive-training programs for budding entrepreneurs, including one branded as the Lead Now leadership program. Luther joined the program in January 2020.

“I’ve had my proud-mom moment,” she said. “My office window faces the building they moved into. It’s a team of truly go-getters. From our perspective, they are a model business.

It would have been easy for them to get frustrated with the first year they had, but the brothers pushed ahead.” ` The Browns also got help from the 100K Ideas program that is part of the Ferris Wheel Innovation Center in downtown Flint. It provides would-be entrepreneurs and startups with a variety of services, including access to mentors and advisers at Kettering University and the University of Michigan-Flint.

The John L Group was a pilot project for 100K Ideas. Normally it helps companies much earlier in development than the Browns were, at a charge of $40 an hour. Could it develop a program to offer a smaller set of services at a cheaper price?

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trucks will also be welcome to come park at the site and sell their wares.

“Tony Vu and MaMang have been a wonderful addition to the Flint Farmers’ Market. Tony’s enthusiasm for Flint and making it a better place for all is contagious, and we are lucky to have him as a part of our market family,” said Karianne Martus, the market’s manager. “I know he has big plans with the Flint Social Club...

With his vision and determination it will no doubt be a huge success.”

rant and the Good on Wheels food truck, both in downtown Traverse City. The Good Bowl serves a more upscale version of the fare offered at MaMang.

The Good Bowl donates $1 for each entree to charity, and in three years has donated $100,000 to charities voted on by customers.

“Both of us are refugees from war.

We are so blessed to be able to be here,” said Vu. “This is our thank you to America.”

Before going to Peru in 2012, Vu was a drummer for 15 years in an indie rock band called Kinetic Stereokids, which toured throughout the U.S. and Canada.

Between gigs, Vu supported himself as an IT professional.

“I got burned out on music and IT and headed to Peru,” he said.

“Tony really embraces the model of sharing resources,” said Heather Kale, the manager of the Ferris Wheel Building in downtown Flint, which has sponsored some of his events.

Jasz Farm

A return to Flint, an expansion to Traverse City When Vu returned to Flint eight years ago, he started selling Vietnamese food out of what he calls “a dinosaur beater,” a 1956 Ford stepvan with more than 300,000 miles on it he rechristened “Wrapped & Rolls.”

For six years, he has run MaMang.

Since 2018, he has co-owned with a Vietnamese refugee, Soon Hagerty, the Good Bowl Vietnamese restau-

22 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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In 2019, La’Asia Johnsonwas suffering from job burnout and case overload as a social worker specializing in childhood autism for the Genesee Health System. She had begun to think that maybe, just maybe, there might be another career path for her.

Johnson had long suffered from eczema, on the palms of her hands, on her scalp and on the bottoms of her feet.

“I went to a dermatologist, I had prescriptions, I bought creams. Nothing worked for it,” she said.

For years she had posted in Facebook groups and searched Google for more information about the ingredients in the prescriptions, ointments and creams she had bought over the years. Some of the ingredients made no sense to her. She thought there were better combinations of ingredients she could come up with. And so she did.

She bought a variety of ingredients, primarily shea butter, coconut oil and grapeseed oil, and began blending them in various combinations. “There were things that worked for me,” she said. Her eczema calmed down and began to disappear. “I started to share products with my family and friends. And they spread the word by word of mouth to their friends and family. This is a word-ofmouth business.”

She called her word-of-mouth business Elle Jae Essentials, based on the first letters of her first and last names, and began selling poducts from her apartment.

In September 2019, after quitting her job, she opened a kiosk at the Great Lakes Crossing. On Feb. 19, 2020, Johnson won $5,000 as runner-up at a pitch event hosted by 100K Ideas, an entrepreneurial support organization based in the Ferris Wheel Building in downtown Flint.

Johnson was sure she was on her way. But the world was about to come to a screeching COVID-19 halt, and in weeks, Great Lakes Crossing shut its doors.

Johnson, who was born and raised in Flint, was undeterred. She contin-

Jaszmane Sisco, owner of bakery Little Suga’s, also teaches baking classes at the Flint Farmers’ Market. She said Tony Vu has been a mentor to her. | JASZMANE SISCO

“Where we were four years ago in Flint isn’t where we are now. It’s been really inspiring to see these entrepreneurs come up with these ideas that require cooperation. We’re all working together.”

Siwek Construction’s Moe said he has known Vu for 10 years. “When he started laying out the vision for the Flint Social Club, I and the Siwek family wanted to get involved,” he said. “We’re in a community where we can have an impact, help out where we can. We get involved in passion projects.”

He said that includes regularly sending employees out to clean up empty lots in and around the city.

One of those Vu has helped is Luis Hernandez, who in July launched his food truck, Gordo and Flacos Tacos.

“He helped me do most of the paperwork and go through the health department process,” said Hernandez, who works the third shift at GM Truck and Bus in Flint.

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The answer was yes. “They had tion of our business,” said Luther. very specific needs,” said Brandee And then, counterintuitively, Cooke-Brown, the program’s exec- COVID actually got them some utive director. The program helped business, for three reasons. One, the Browns on trademark law, some companies couldn’t handle structuring the business and up- their trucking needs internally bedating and refining the company cause they didn’t have enough website, and now offers a stripped workers still on the job to handle down set of services to other more the demand. Two, there were advanced companies for $100 a small trucking companies that month. “It’s been so incredible to suddenly found their trucks sitsee a group of brothers come to- ting because regular customers gether and create this,” she said. had shut their doors and were “That they did it in Flint means so happy to let the Browns find them much. I’m so proud to have been some loads. And three, the boom able to help. They were a perfect fit in online shopping created more for us to work out how best to roll demand.

“Companies needed to move out the program to everyone.” ` The company also got assistance product out of their warehouses from a program that is a collabora- so they could make room for new tion between the Michigan Eco- products, and we found trucks nomic Development Corp. and the that were available,” said A.C. Edward Lowe Foundation called “Not large trucking companies. the System for Integrated Growth, Small, mom-and-pop carriers. which helps second-stage growth People with fleets of five trucks.”

By Septemcompanies manage evolvber, they were rolling, figuraing challenges. “COMPANIES NEEDED TO tively and ` Last, but not MOVE PRODUCT OUT OF down the highleast, the Flint way. office of the THEIR WAREHOUSES SO Leo Caushi Small Business THEY COULD MAKE ROOM is founder and Administration president of helped the FOR NEW PRODUCTS, AND Wayne-based company get WE FOUND TRUCKS THAT CT Carriers, a designated as a trucking firm HUBZone Cer- WERE AVAILABLE.” that hauls tified Compa- — A.C. Brown, CEO, John L Group freight for, ny, a designation that helps small businesses in among other customers, General distressed areas gain preferential Motors, Ford Motor Co. and UPS. The John L Group is one of his access to federal contracts. The company is also a member of Na- brokers. Caushi uses the Browns tional Minority Supplier Develop- to find trucking firms to haul carment Council. go when needed to augment his own fleet.

“They were referred to me by anA first customer other trucking company, L&D In January 2020, the John L Transport in Detroit. Trucking is a Group landed its first customer, small community; everybody Flint-based Accu-Shape Die Cut- knows everybody. They said, ting Inc., which makes moldings ‘Check out this broker. They work for car doors and needed parts hard and they are honest,’” said Caushi. “They’ve been great. Absoshipped from North Carolina.

“Then, boom, COVID hit,” said lutely. Very professional, very honA.C. “We’d gotten a couple of est, sincere.”

The four members of the family loads to ship, and we thought we had created some movement. On are the only employees so far, but March 16, the state shut down. the company does have a few conThe problem we really faced was tractors helping in the office. A.C. we were so new, no one knew who said he is interviewing prospective we were. Companies were like hires, now, and will be adding a ‘We’re not onboarding any new few more employees next year. carriers, now.’ But it allowed us to Contact: thenderson@crain.com hone in on our business model.”

“We nailed down the founda- (231) 499-2817; @TomHenderson2

CRAIN’S MICHIGAN BUSINESS | FLINT

A Flint entrepreneur looking for a better eczema treatment formulated a business success

BY TOM HENDERSON

La’Asia Johnson, founder of Elle Jae Essentials, at her Flint storefront. |TOM HENDERSON/ CRAIN’S DETROIT BUSINESS

ued to grow her business by word of mouth, adding a sales portal through a website, ellejaeessentials.com. This September, she opened a small retail outlet on Flushing Road on Flint’s north side.

She offers about 50 different products, including whipped body butter, bath and body oil, lip butter, body wash, hand sanitizer, beard butter and hair butter. They are available at her store and at Summerset Salon & Day Spa in Flint and Handmade Toledo in Toledo.

She also recently added her fourth and fifth employees and expects sales to be more than $160,000 this year.

“When I decided to leave my job, it was like, ‘I know I can do this.’ I was determined to make it work, 100 percent.

There was no plan B. No other options,” said Johnson.

“I’ve absolutely been impressed with her,” said Brandee Cooke-Brown, executive director of the 100K Ideas program. “We love it when people use their pitch money the way it’s intended. She used the money to grow her business, moving from her apartment to a storefront. She’s got such great energy.”

Jessica Crossfield is the founder of Handmade Toledo, a retail outlet that

offers products made by more than 200 artisans, including jewelry, original art work, stationery, clothing and bath and body products.

Crossfield said she has been selling Elle Jae products for more than a year, after Johnson submitted an application online.

“Her products are great. I love the idea behind it,” said Crossfield. “Her sales are strong ... She sells quite a bit.”

Cherrell Carter is one of the friends and family who became a regular customer. She went to college with Johnson at Oakland University and has remained friends since. Her young son, Kareem, had recurring breakouts of rash on his skin. Carter began using a body butter formulated by Johnson on him more than a year ago and saw immediate improvement. She since has started using some other products herself.

“My satisfaction is 100 out of 100. I love her products, I really do,” she said.

Carter is a manicurist and said she also uses the products on her customers’ hands, too. “That reminds me. I'm running low. I need to order some more,” she said.

wouldn’t have got up and running without him. He heard from a friend of mine what I was trying to do and reached out to me. I tried to get a taco truck going before and couldn’t. I don’t know anyone helping out us newcomers like him.”

Hernandez moved his truck around during the week, hit a lot of weekend events in the area and if nothing special was going on, generally could be found on weekends in the nearby city of Burton. “Business was pretty good. I’m very happy,” he said.

He said he has shut things down for the winter, but will have the truck back in business this spring and hopes to have a presence in Vu’s brick and mortar food hall.

Others to benefit from Vu’s mentoring are a father, Therman Sisco, and daughter, Jaszmane Sisco. Last year, Therman launched a catering company, Sisco Catering LLC, which focuses on such comfort food as barbecue pork, gumbo, red beans and rice

and collard greens.

Jaszmane started Little Suga’s, which makes a variety of baked goods and custom-ordered cakes, including wedding cakes. Some specialties? A banana-pudding cheesecake and a cornbread muffin stuffed with mac and cheese.

She also teaches baking classes for both kids and adults at the Flint Farmers’ Market and operates a popup space there on the Thursday night events on the pavilion. She also does pop-up sales at various Flint events.

“Tony has been a mentor to me.

He’s been a great help,” she said. “I appreciate having something like the Flint Social Club. It’s been just amazing. It’s brought my business a big following.”

Like Hernandez, Jaszmane says she will be in Vu’s food hall when it is up and running. “I’ll definitely be using a stall there. We’ll have a home.”

Contact: thenderson@crain.com (231) 499-2817; @TomHenderson2

Contact: thenderson@crain.com (231) 499-2817; @TomHenderson2

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GOVERNMENT REFORM

GUEST OPINIONS: Why Michigan needs a constitutional convention. PAGE 28 Redistricting commission is working. PAGE 28 Petition drives work when politicians won’t. PAGE 29 Abolish partisan election certifications. PAGE 29

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DALE G. YOUNG/SPECIAL TO CRAIN’S DETROIT BUSINESS

`BY CHAD LIVENGOOD

UST MOMENTS AFTER THE BUSINESS day ended on a Wednesday in mid-September, Republicans who control the Michigan Legislature issued a news release announcing that they had reached a deal on the state’s 2022 fiscal year budget with Democratic Gov. Gretchen Whitmer’s administration.

The joint statement from the state budget director and chairmen of the Senate and House appropriations committees contained no details, not even a total dollar figure for how much taxpayer money they intended to spend over the next 12 months.

Six days went by before most legislators and anyone in the public got their eyes on what was actually in the 387 pages of budget bills. The next day, lawmakers voted to send Whitmer a record-setting $53 billion budget funding state agencies and programs that was chock full of legislative dictates and spending increases.

This is what passes for government transparency in Michigan these days: The most public of public documents — the state operating budget — largely gets hashed out behind closed doors by three individuals who wield tremendous power over the process.

These negotiations between the appropriations committee chairs and the budget director have long been referred to in Lansingspeak as the “target” meetings — where they established spending targets for the appropriations subcommittee chairs to meet for various state agencies.

In tough times, the targets take on a different meaning — targeted cuts.

Now, with state coffers flush in federal stimulus and higher-than-expected tax revenues, an increasingly smaller group of leaders authors whole sections of the budget, with almost no sunlight on the process.

This is not how your state government used to operate before term limits sent the budget experts — those subcommittee chairs who knew the operations of state agencies inside and out — into a constitutionally mandated retirement.

Not even close.

It’s just one aspect of how state government operates that is ripe for reform.

As 2022 approaches, Michigan voters are about to see the government reform byproduct of their own making: New boundaries for Michigan’s 13 congressional seats and 148 state legislative districts drawn by an independent citizens commission.

The redistricting commission, established through a constitutional amendment that voters passed by a two-to-one margin in 2018, is one of the most sweeping reforms to how state government operates since voters cemented term limits in the constitution in 1992.

From its infancy, redistricting reform was aimed at ending the practice of politicians drawing their own district maps after every decennial census — and gerrymandering out blocs of voters to ensure an easier chance at keeping their political party in power.

The movement behind putting the redistricting pen in the hands of voters was rooted in fixing a perceived problem with the way Lansing works.

But changing how district lines are drawn probably won’t change the way Lansing actually operates once a new crop of legislators arrives after the November 2022 election.

There will still be just a small cadre of state officials who decide how to spend billions of dollars of your money.

For Crain’s Forum this month, we explore 10 ways to change how state government operates in Michigan, breaking down the pros and cons of each issue:

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1. TERM-LIMITS REFORM

4. REIN IN INITIATIVE PETITIONS

The issue: In 1992, Michigan voters approved a constitutional amendment that limits individuals to serving a maximum of three two-year terms in the Michigan House of Representatives and a maximum of two four-year terms in the Senate. The governor, lieutenant governor, attorney general and secretary of state are limited to serving two, four-year terms.

The issue: The constitution allows citizens to gather a certain number of signatures to place a proposed law before the Legislature, which can either adopt the proposal or let voters decide on the next statewide ballot. The governor cannot veto a voter-initiated law.

What’s the problem: Term limits have drained the Capitol of institutional memory.

In 2011, the Michigan Legislature cut business taxes by $1.8 billion annually, making sweeping changes to the state’s tax code. Today, there are fewer than 20 senators who were in the House at the time and have any knowledge behind that decisionmaking. In the House, the speaker and the chair of the House Appropriations Committee positions turn over ever two years, causing disruption in the leadership continuity of state government. The Legislature is charged with overseeing a multibillion dollar enterprise and promotes a legislator after four years on the job to the CEO’s seat every two years.

What’s the problem: The initiative petition process has been used by special interest groups to bypass the governor’s veto pen, making an end run around the executive branch of government.

The process empowers a minority number of voters — less than 400,000 — to write and repeal laws without the checks-and-balance of the governor.

Why do it: Either repeal term limits altogether or change term limits to let legislators serve more terms in either chamber. There have been past proposals to expand term limits to 16 years in either chamber, keeping in place the current lifetime limit for combined service in the House and Senate.

Why not: Term limits are a voter check on the Legislature that prevent career politicians from becoming entrenched in state government.

2. FISCAL YEAR REALIGNMENT The issue: Michigan’s state government fiscal year begins Oct. 1, while school districts and many cities, counties and other public sector entities start their fiscal years on July 1.

What’s the problem: This leads to uneven deliberations over the state budget each year where lawmakers will attempt to broker a deal on school funding in May and June before the July 1 start of the fiscal year for schools. They then often punt the rest of the budget negotiations to late summer or early September, leaving little time on the clock to avert a state government shutdown if a budget isn’t passed by Sept. 30 (which happened in 2006 and 2007).

Because they don’t have to pass a budget until Sept. 30, lawmakers can leave school administrators and boards in a lurch over the summer while schools are trying to finalize budgets.

Why do it: Amending the Constitution to require lawmakers to pass budgets for schools and state agencies in tandem in the spring or early summer would force them to get it done before vacating the Capitol in the summer to campaign during election years.

Why not: Leaving the split fiscal years in place can give legislators and the governor leverage in negotiations. For lawmakers at odds with a governor, controlling the clock is everything.

3. KILL THE LAME-DUCK SESSION The issue: After each November election and the annual deer hunting/Thanksgiving recess, Michigan’s Legislature has three weeks in November and December to pass any remaining legislation for that two-year term. Any bills that don’t make it to the governor’s desk before adjournment have to be reintroduced in January, after the new Legislature gavels into session.

What’s the problem: The lame-duck session has been used by term-limited legislative leaders to jam controversial legislation through, sometimes in the dead of the night. The normal legislative process of committees vetting bills and issues often gets tossed out.

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Why do it: Eliminating the lame-duck session or limiting what the Legislature can do during the period between the election and New Year’s Eve would force lawmakers to debate and vote on controversial bills before they face voters.

Why not: Term-limited legislators are, in theory, free from the pressures of an election and can vote their conscience in lame duck on issues that otherwise wouldn’t pass during the rest of the session.

Why do it: Ballot proposal campaigns are increasingly shaped around getting the Legislature to approve a voter-initiated law instead of going to the ballot,

DALE G. YOUNG/SPECIAL TO CRAIN’S DETROIT BUSINESS

8

which can cost millions of dollars. The successful Unlock Michigan campaign that led to the Legislature repealing the 1945 law Whitmer used to issue executive orders at the start of the coronavirus pandemic is an example.

Why not: The initiative petition process is, by itself, a check on the governor and his or her power to block legislation that has the support of a majority of legislators. It’s Michigan’s form of direct democracy.

5. PROHIBIT REFERENDUM-PROOFING OF LAWS The issue: The Legislature can make a new law immune to voter referendum by simply attaching an appropriation of any dollar amount to the bill. The Michigan Supreme Court has ruled that appropriation bills cannot be overturned by voters at the ballot box. Lawmakers have made it a habit to referendum-proof any bill that might spark backlash from voters.

What’s the problem: Michigan voters in 2012 repealed a controversial emergency manager law in a statewide referendum, a rebuke of then-Gov. Rick Snyder and the GOP-controlled Legislature’s public policy ap-

proach to cities and school districts in financial crises such as Detroit, Flint and Benton Harbor. The next month, the Legislature passed a replacement EM law and attached an appropriation to the new law that made it immune to another voter referendum.

Why do it: Amending the constitution to prohibit this practice would empower voters to have the final say over new laws.

Why not: Like voter-initiated laws, referendums can be funded by a special interest group that didn’t get its way with the duly elected 148-member Legislature.

That was the case with the 2012 repeal of Snyder’s emergency manager law, which was backed by the municipal workers union, American Federation of State, County and Municipal Employees Council 25.

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YourChildrensFoundation.org/caring-for-kids DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 25

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6. CAMPAIGN FINANCE REFORM The issue: Michigan’s campaign finance laws contain loopholes that let special interest groups influence the process, lawmakers and voters without ever disclosing who is paying for the influence-peddling.

DALE G. YOUNG/SPECIAL TO CRAIN’S DETROIT BUSINESS

What’s the problem: Politically focused organizations and other 501(c)4s are not required to disclose donors or spending as long as they don’t expressly advocate for the election or defeat of a candidate. But the groups can toe all the way up to the edge of electioneering, often using ads featuring a state representative or senator that tells constituents to call that lawmaker and tell them how to vote on a particular issue. These groups are not subject to the same laws as a political action committee. The money these groups do spend on broadcast television stations is sometimes disclosed in FCC reports, but there’s no accounting of where the money came from.

Why do it: Lifting the veil on dark money in Michigan politics would end a legalized form of money laundering that allows corporations, unions and wealthy individuals to conceal the original source of money used to advocate for changes in state law. Sometimes those law changes benefit anonymous donors to the dark money-funded group that’s trying to influence the Legislature or public opinion.

Why not: The U.S. Supreme Court has ruled that spending money in politics is a form of political speech. Adding reporting requirements for issue advocacy groups could discourage some from participating in the debate.

8. FOIA FOR GOVERNOR, LEGISLATURE

7. ADMINISTRATIVE ACCOUNT TRANSPARENCY The issue: Lawmakers set up nonprofit organizations known as administrative accounts to raise private donations that they can use at their discretion, outside of their normal re-election committees and political leadership committees, which are subject to public disclosure.

The issue: The only halls of power in Michigan not subject to the Freedom of Information Act are the ones occupied by the elected officials with the power to change the law.

office, individual legislators and the administrative offices of the House and Senate to abide by FOIA would lift the veil on their internal management decisions for the public to see. It would be no different than the scrutiny the Legislature subjects state departments, county commissioners and a local fire department to.

What's the problem : Michigan is one of two states in the union that doesn’t make its Legislature and governor subject to FOIA.

Why not: Legislators want to exempt their communication with constituents from public disclosure, citing their right to privacy. But the definition of a constituent could be a lobbyist or individual seeking to influence the outcome of public policy.

Why do it: Requiring the governor’s

What’s the problem: Donors who wish to remain anonymous can donate unlimited sums of cash to these administrative accounts, which have limited disclosure requirements to the IRS. In 2019, the Michigan Campaign Finance Network found a majority of the 148 lawmakers have connections to one of these accounts. MFFN’s investigation revealed lawmakers have held fundraisers where donors were directed to donate to a secretive administrative account instead of their campaign account.

These accounts are effectively legalized slush funds and seemingly ripe for corruption.

Why do it: Requiring public disclosure of all transactions for administrative accounts tied to lawmakers would shine new light on how extensively these funds are used to conceal the identities of donors and what the money is spent on.

Why not: Some lawmakers claim they use the money to support charities or pay for incidental office expenses.

That may be true. But the public has no way of knowing without disclosure.

9. CROSS-PARTY VOTING IN PRIMARIES The issue: The majority of seats in the Michigan Legislature are for districts dominated by one party or the other. In Detroit, the winner of a six-person Democratic primary is effectively the winner of the general election. Same goes for a four-person Republican primary for a House seat in Lapeer County.

What's the problem: Some members of the Legislature get elected to office by as little as 33 percent of the vote in a closed primary.

This leads to uncompetitive general election races and candidates from these districts who often pander to the extreme wings of their political parties.

Why do it: Some cities and states elsewhere in the country have adopted a system of rank choice voting that allows voters to say who their second, third, fourth or fifth choice would be for a particular office. They open up primaries so that voters can vote Republican in a state Senate primary and Democrat in a House primary.

Rank choice voting forces runoff elections in the general election that can be more competitive than, for example, a heavily favored Democrat in a Detroit district facing a Republican who doesn’t stand a snowball’s chance in hell of winning. It also might get more voters to participate in primary elections if they’re no longer restricted to a single party.

Why not: Partisans in the Republican and Democratic parties are resistant to letting voters from the other party participate in their traditionally closed primaries.

DALE G. YOUNG/SPECIAL TO CRAIN’S DETROIT BUSINESS

10. HOLD A CONSTITUTIONAL CONVENTION The issue: Michigan’s state constitution was last re-written in 1961-1962 and ratified by voters in 1963.

The 58-year-old constitution requires voters to vote every 16 years on whether to hold a convention. The next election this issue will be on the ballot is November 2026.

What's the problem: The Michigan of 1963 is a lot different in 2021, with an evolving economy, environment, culture and longstanding social inequities. Michigan’s 1963 constitution and a series of amendments set in place a structure of government that conformed to the times — when Michigan was still a growing state, largely because of the widespread availability of jobs in the automotive sector.

Why do it: A lot of the aforementioned changes could be made in one fell swoop at a constitutional convention. The six decades since the last constitutional convention is the longest stretch in state history between conventions where elected delegates draft the state’s foundational governing document.

Why not: Either political party or another group could work to elect delegates who do their bidding at the constitutional convention. Critics worry that this could lead to a coalition of delegates forcing changes that may not be popular with the general electorate. A more conservative approach, they say, is to make individual constitutional amendments over time instead of shelving the existing constitution and starting from scratch.

Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

26 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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COMMENTARY

Time for a constitutional convention

I

since Michigan last apf governmental reform is proved a call for a Constithe goal, attempting to tutional Convention in accomplish it piecemeal 1960. That is the longest one constitutional amendperiod in Michigan history ment or statutory initiative that the state has operated at a time is not the way to go. under one constitution.

It is time for a bolder apMichigan’s current conproach. I suggest it is time to stitution provides that look ahead, in less than five each House and Senate years’ time and begin plan- Bob LaBrant district elect a Convention ning for the question that was senior vice delegate in partisan elecwill automatically be placed president for tions. That means 148 delon the ballot on Nov. 3, 2026. political affairs egates would be elected The question will be wheth- and general from districts that will be er to convene a constitutional counsel for the in effect in 2022. convention of elected dele- Michigan If the last constitution gates empowered to draft a Chamber of convention serves as a general revision of Michigan’s Commerce until his retirement in guide, primary elections 1963 Constitution. would be held in the Michigan has had over its 2012. He later spring of 2027 and general history four Constitutions: spent five years 1835, 1850, 1908 and 1963. as senior counsel elections in the summer of 2027 with the convention Michigan Constitutions since for Sterling convening in October and 1850 require that the question Corp., a remaining in session until of whether to convene a new Lansing-based the fall of 2028. convention be placed on the political A statewide ratification consulting firm. ballot every 16 years. vote would occur in the That question was last on the ballot in 2010. If rejected in 2026, spring of 2029. Delegates in 1961-62 it will automatically be on the ballot received the same pay as state legisagain in 2042. lators.

In 2026 it will have been 66 years The Constitutional Convention in

George Romney (second from right), then-president of American Motors Corp., is pictured with the other Republican contenders for president of Michigan’s constitutional convention when it convened in 1961: (from left), Michigan State University President John Hannah, University of Michigan political scientist James Pollock and former state Sen. Edward Hutchinson of Fennville.

1961-62 was not held at the state Capitol but at the Lansing Civic Center.

What issues would be reviewed by a constitutional convention?

Certainly, the new independent citizens redistricting commission would be fine-tuned. Commissioner selection, defining communities of interest and political fairness, and the rank order of each line drawing criteria would all be subjects of delegate focus.

Term limits, school finance and tax limitation would likely be revisited.

Should the governor be shut out of the statutory initiative process completely and have no veto power over an initiative passed by the Legislature? Should the Legislature be able to attach any size appropriation to keep a law from

being subject to referendum?

What governmental structural changes would be reviewed by a constitutional convention?

Should the State Board of Education and the university governing boards at the University of Michigan, Michigan State University and Wayne State University continue to be elected statewide on the partisan ballot in November after candidates are nominated at political party conventions? Or should these board members be appointed by the governor with advice and consent of the Senate?

Should the Michigan Supreme Court be elected from districts like the Michigan Court of Appeals? Should Supreme Court justices be nominated

at state political party conventions or chosen in nonpartisan primaries?

Should judges continue to be ineligible to be elected or appointed after reaching the age of 70?

Does Michigan need to elect a lieutenant governor, secretary of state and attorney general, or should these offices be appointed by the governor with the advice and consent of the Senate?

Should gubernatorial appointments to fill judicial vacancies be subject to the advice and consent of the Senate? Currently, they are not.

What jurisdiction should the Michigan Court of Claims have?

What judges should be assigned to the Court of Claims?

Should the Michigan Constitution

COMMENTARY

House, Senate and Cons the Michigan Indegress. pendent Citizens ReThat’s still the system districting Commisacross most of the nation. sion moves toward In Illinois and Maryland, completion of its work, those Democrats are drawing of us at Voters Not Politicians districts that will virtually are pleased with its operaguarantee them control for tions — particularly in comthe next decade. parison to how redistricting In Texas and Indiana, of congressional and legisla- Nancy Wang it’s Republicans who are tive districts previously was is executive conducted in our state and is director of Voters using sophisticated computer systems to carve up still done in most states Not Politicians, the state for their benefit. around the nation. the citizens Their gerrymandering will As we have seen in Michi- group that rig elections in these states gan in the past, having poli- authored and for the next 10 years. ticians draw the districts is a campaigned for Against that backdrop, prescription for devastating the successful the work of the 13 memdamage to democracy. passage of a bers of the Michigan IndeIn Michigan in 2011, the constitutional pendent Citizens RedisRepublican legislative lead- amendment in ership crafted districts be- 2018 creating an tricting Commission is a paragon of democracy. hind closed doors with no independent The Voters Not Politiinput from citizens. The dis- citizens cians constitutional amendtricts drawn undermined de- redistricting ment, approved by 61 permocracy by giving Republi- commission. cent of the state’s voters in cans a majority of seats, even in years when most voters cast ballots 2018, is working.

Not perfectly. At Voters Not Politifor Democratic candidates in the

cians we strongly disagree with the commission’s decision to go behind closed doors at one meeting, apparently to discuss legal memos regarding how the federal Voting Rights Act might be interpreted.

We wrote the amendment to prohibit this kind of closed-door discussion. We expect this matter will be litigated. But it has only happened once, on one issue, and that’s far superior to past practices.

Our amendment, developed in public drafting sessions around the state and taking into account best practices from other states along with unique Michigan features, focused on keeping politicians out, transparency high, partisanship low and collaboration a standard. ` Voters, not politicians: The random selection of members from a group of interested citizens who self-identified as being supporters of one of the two major parties or unaffiliated with either of those parties, while allowing top leaders from both parties to eliminate some, has worked well.

GETTY IMAGES

Citizens redistricting commission is working A

Our commissioners are citizens from across the state. They are far more representative of Michigan than the tiny cadre of consultants, Republican party leaders and lawmakers who made the decisions in 2011. ` Open and transparent: We called for all meetings and discussions to be held openly and mandated public hearings before and after maps were drawn to allow maximum input from the public.

With the one transgression discussed above, this has been a major success. Hundreds of people testified, and commissioners reacted to what they heard. Pulling back the curtain has given the commission credibility.

` Partisan fairness: A key part of the amendment required districts be drawn without favoring any candidate or party. The commission has carefully considered measures of partisan fairness to inform its mapping decisions. It has balanced its other charges, including keeping an eye on communities of interest, the Voting Rights Act, communities’ boundaries and population variances. We are confident that these districts will finally let Michigan voters pick their politicians, based on the qualities and issues of the candidates, rather than having foregone outcomes based on politicians packing and cracking voter blocs. ` Collaborative: In major matters the amendment required that at least

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COMMENTARY

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keep the size of the House of Representatives and Senate at their current size? In other states, House and Senate districts are interlocked, three House districts make up one Senate district.

In 1978, 1994 and 2010, I led the no vote coalition opposing convening a new constitutional convention. In those elections I believed then a no vote was warranted.

However, the 2026 con-con vote is the best opportunity to give Michigan a 21st century Constitution that is thought through and subject to compromise in the give and take of constitutional debate, not the product of one interest group’s wish list.

some members of all three “buckets” of commissioners — Republican, Democratic and non-affiliated — be approving of final decisions. No one group, or even two groups, have been able to jam through decisions without the votes of the other. We expect that will continue as the final map selections are made.

The process has worked well, far better than our critics expected. Have some meetings been chaotic? Yes, and so is democracy.

Will the partisan fairness measures used let elections be a marketplace of ideas? We believe the results will be far superior to having politicians draw districts.

Could the process be even more transparent? We would hope that future commissions will learn from the stern and appropriate bipartisan public outcry that followed the one time the commission closed its doors.

This process formed by citizens, approved by the electorate, and supported against court challenges by judges in state and federal courts has stood up to its major test.

We await the maps, more convinced than ever that having voters, not politicians, draw election district lines has been one of the state’s most important and positive political reforms since our current state constitution was approved in 1963.

this activity — on both his won’t come as a the left and the right — if shock, but somethe state Legislature and times the politicians this governor were better at the State Capitol can’t at solving problems. But get along. this is not particularly Often there are legitinew. And there’s nothing mate differences of opinwrong with citizens using ion based on values, idetheir constitution to make ology, or partisan change happen. affiliation that prevents a Michigan would not be governor and a Legisla- Ron Armstrong better off if we did away ture from coming to an is co-chairman with this mechanism deagreement on an issue. of Unlock signed to break deadlocks Sometimes the differ- Michigan and between the governor ences are institutional, owner of and the Legislature. And with a governor protecting Armstrong this would not be a better executive power and law- Display state if citizens were unmakers asserting their Concepts Inc. in able to band together and Newaygo. dominance. force issues onto the And sometimes when the politicians do agree, we’re all agenda.

To those who says it’s too easy to dissatisfied with the outcome. All too often politicians just agree to legislate from the cheap seats, I ignore an issue, kick the can down challenge them to take matters into the road, or hope a problem will go their own hands and try it.

I helped lead the petition drive to away on its own.

Michigan has a provision in its repeal the Emergency Powers of the state constitution allowing voters to Governor Act, which Whitmer used to govern by decree for what we step in and break these deadlocks.

Citizens can initiate legislation considered to be an excessive by petition. If the Legislature enacts amount of time.

We collected over 500,000 signaa citizens’ initiative, it becomes law without needing the consent of a tures in just 80 days — during a pandemic and quarantine. But it governor.

If the Legislature refuses to enact took a monumental effort by more the proposal, or even refuses to than 40,000 citizens and millions of vote, voters can pass the proposal dollars raised during a crushing into law on the general election bal- economic shutdown. I can assure lot without the help of any politi- you none of us thought it was easy.

To restrict or repeal the process cians.

Proposals large and small, from of the citizens’ initiative would rethe left and right, have become law quire a constitutional amendment, through this mechanism. Marijua- which could require a petition drive na was legalized — first for medici- of its own. nal purposes then later for recreational PROPOSALS LARGE AND SMALL, use — by citizens’ initiative.

Casino FROM THE LEFT AND RIGHT, HAVE gaming in Detroit BECOME LAW THROUGH THIS was legalized the MECHANISM. same way.

Several proposals It would be deeply ironic, if not restricting abortion were enacted over the vetoes of Govs. Jim absurd, for a citizens group to cirBlanchard and Jennifer Granholm. culate petitions to restrict citizens An increase in the minimum wage from circulating petitions.

Or two-thirds of the Legislature and guaranteed paid time off for workers were enacted by sidestep- could put a constitutional amendping Gov. Rick Snyder’s expected ment on the ballot, but voters would be very likely to swat down veto.

Most recently the emergency an attempt by the politicians to take powers of the governor were sharp- away the power voters have over ly restricted over the furious objec- politicians.

The obvious antidote to any pertions of Gov. Gretchen Whitmer.

And petitions are currently being ceived excess in citizen legislating circulated to further restrict public would be for the Legislature and health emergency powers, require the governor to do their jobs better.

We elect and pay these people to photo identification to vote, allocate presidential electors by the na- solve problems; voters only step in tional popular vote, drastically re- when the politicians fail — or restrict payday lending, and provide fuse — to perform their jobs.

In the meantime, we will continscholarships to students to enhance their educational opportuni- ue legislating from home, because Michigan still has too many probties.

Unsurprisingly, many politicians lems unsolved.

You won’t be able to miss us; are losing their minds over this outwe’ll be coming toward you with a break of citizen legislating.

Perhaps there would be less of clipboard in hand.

GETTY IMAGES

Petition drives work when politicians won’t COMMENTARY

Certify elections without partisanship

“W

ing weaponized by partie drank our bitsans to “correct” these ters while the contrived problems. How empire fell” — our votes are counted, lyrics from ‘Leave My Monkey who counts them and how Alone’ by Warren Zevon those votes are verified is Who wins our elections now under direct attack. should not depend on the This should be changed. identity or partisanship of County and township who counts our votes. The candidates who get more Jeff Timmer was election clerks are elected votes should win. In Michi- executive director as partisans. City election clerks are appointed. gan, that has been the case. of the Michigan They’ve historically acted This seems the most Ameri- Republican with integrity, transparencan of notions. A no-brainer.

Party. He is now cy and attention to accuraVote. Count. Certify. It’s a senior adviser cy and detail. We’ve not arithmetic. It’s perfunctory. to the Lincoln doubted their fairness.

Until it isn’t.

Project. He has We’ve certainly never seen Participation in our No- served as both a vember elections has never county canvasser them targeted and pressured to act as naked partibeen higher. The security of and on the sans or bullied and intimiour registered voter lists, the Michigan Board dated to force them from absentee voting process and of State office so they can be revoting at precincts on Elec- Canvassers, the tion Day has never been state panel of two placed by less scrupulous greater. The accuracy of our Republicans and partisan actors.

County and state election results has never two Democrats boards of canvassers that certifies been more superior. should be abolished. By Why, then, has the public statewide design, these boards connever been more skeptical election results. sist of equal numbers of about the integrity of our sysRepublicans and Demotem?

The simple answer: Propaganda crats. At least three votes are required for affirmation or certification of any works.

We nearly witnessed the implo- decision before them, necessitating sion of this system in November 2020 bi-partisan agreement, and supposas the national and world spotlight edly removing occasion for one party fell upon the Michigan Board of State or the other to cry foul.

That works, so long as the people in Canvassers, would they deadlock or certify, would the Republican-con- the positions follow the law and postrolled Legislature intervene, and sess a basic semblance of character. might competing slates of electors be But Michigan Republicans are now purposefully replacing those who fulsent to Congress to sort out.

All due to a deliberate one-sided filled their legal duties last year with strategy of undermining the election people who promise to throw results by employing lies and qua- wrenches into the gears of the 2022 si-legal tactics intended solely to and 2024 elections, simply to achieve raw partisan victories regardless of overturn the actual results.

The empire nearly fell. It didn’t. who captures the most votes.

Judges will likely intervene, but the That time. What about the next?

The chaos and intrigue we wit- divisions, distrust and damage may nessed last year served as a stress test be irreparable by the time they do. during which the systemic boundar- Our collective faith in the integrity of ies were probed for weakness yet the results will have already been held. The very partisan extremists compromised.

Pro-democracy Americans should who assaulted the process in 2020 be alarmed at where we stand. We were emboldened not deterred.

They’ve spent the past 13 months should be demanding that we autopainting the fictional narrative of sys- mate the certification of elections the temic flaws and irregularities in our way we’ve mechanized counting votes. voting that need fixing. They’ve effec- We should also be demanding that we tively lit imaginary fires and are remove election administrators from clamoring that they now be put out the pressures of satisfying partisan votby changing actual laws and altering ers and having to stand for election.

And we should defend those in elecreal personnel.

The results: Voting rights are being tion administration positions by estabthreatened and neutral administra- lishing tough laws to protect them from tive positions and functions are be- and pressures or intimidation.

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Advertising Section

PEOPLE ON THE MOVE To place your listing, visit www.crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com BUSINESS DEVELOPMENT

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Jaffe Raitt Heuer & Weiss, P.C. welcomes Diane Slinger as partner with the firm’s estate & wealth planning practice group. For over three decades, Slinger has built a successful legal career in estate planning, real estate, corporate law, contract law, business and tax planning and other areas. She will support the firm’s efforts to develop and refine long-term wealth planning strategies for Jaffe’s portfolio of clients.

Business Leaders for Michigan named Randi Berris, an awardwinning corporate commu-nications leader, as Vice President of Marketing and Communications.

With over 20 years of media and corporate communications experience across multiple sectors, Berris will oversee strategic communication initiatives for the organization.

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EDUCATION

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His goal is to build partnerships with community stakeholders that enhance the learning environment for all students to increase their academic success.

First Tee – Greater Detroit, an initiative of The Children’s Foundation, announced that Matt Kjorstad has been appointed Chief Executive Officer, effective October 25, 2021. Kjorstad will lead the organization and oversee its efforts to impact the lives of the young people of Detroit by providing educational programs that build character, instill life-enhancing values, and promote healthy choices through the game of golf.

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Sigred Solutions LLC Sigred Solutions management recruiting and leadership advisory is pleased to announce that Erin Fitzpatrick has joined the firm as a Senior Client Advisor. Erin brings nearly a decade of recruiting and organizational training experience to the firm. Prior to joining Sigred Solutions, Erin led the implementation of the Learning Management System for a national pet supply company. Erin’s focus is on developing online training programs to help people and companies reach their full potential.

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30 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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PROFESSIONAL SERVICES

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BDO USA, LLP has named Brendan Sullivan a Partner in the firm’s Tax practice.

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BDO USA, LLP has named Mike Whiting a Partner in the firm’s Assurance practice.

Whiting is a leader in the Central region’s Accounting & Reporting Advisory Services practice.

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Some Detroit Medical Center staff were laid off as part of the closure, sources said.

KIDNEY

From Page 1

Health system kidney transplant programs are required to have at least one UNOS-certified nephrologist to lead the operation.

Alsawah, who is also currently awaiting trial on an alleged misdemeanor criminal sexual assault charge in Southfield against a nurse employed at DMC Sinai-Grace, declined to comment when contacted

by Crain’s.

DMC said in a statement to Crain’s that the lack of proper certification for Alsawah did not influence its decision to shutter the transplant program. The health system did not comment on the criminal charge.

“Following UNOS review, the physician in question was not approved to be the primary nephrologist for the program and as a result was removed from the position at the DMC,” Jason Barczy, group manager of operation communications told Crain’s in an emailed statement.

“His departure was not related to the decision to close the program.”

UNOS currently lists 146 transplant candidates in the DMC program. Those patients are being placed in programs at other systems, including Henry Ford Hospital and Ascension St. John Hospital,

A view of the Ferris Wheel building from Saginaw Street in downtown Flint. | CARRYN WHITE

FERRIS WHEEL

From Page 1

It was bought by Dave Forystek, the CEO of Premier Security Solutions, a fast-growing security firm that itself is a graduate of the 100K Ideas program. Premier had been headquartered on the third floor of Hagerman’s Dryden Building, next door to the Ferris Wheel, but had outgrown its space.

“It wasn’t planned. The building wasn’t for sale,” said Hagerman. But he knew Forystek was looking to buy a building in Flint. “I told him, ‘The Ferris Wheel Building will be a spectacular spot for you.’ It’s just great for the city to keep him downtown.”

“I told Phil I was going to move and he said it would do so much for downtown if I stayed there,” said Forystek.

Hagerman and Forystek declined to disclose the sales price. “Phil made me an offer I couldn’t refuse,” said Forystek.

Forystek said he will take over the seventh and top floor of the Ferris Wheel for his company, but the main event will continue to be the co-working space and business incubator and it will continue to be home of 100K Ideas.

He began the seventh-floor buildout in mid-November and expects it to be done Feb. 1.

He said he also plans to expand what is currently a small gym for tenants into a for-profit health club open to the general public.

Forystek, the son of a Flint cop, was a police officer in Flint from 1991-2011 and then was chief of police for two years in the village of Mayville in the Thumb. In 2013, Forystek was asked if he would be interested in providing security on a part-time basis at Flint Powers Catholic High School. He thought it would be a fine way to supplement his retirement.

It remained a small operation until 2018, when Hagerman recommended Forystek go through 100K Ideas. Since then, growth has been dramatic. A main focus of the company has been providing security at

both in Detroit, a source close to the program said.

Henry Ford has 416 kidney transplant candidates in its program and Ascension St. John has 134 candidates, according to data from UNOS. University of Michigan Medical Center in Ann Arbor is the largest kidney transplant program in the state with 753 candidates, according to UNOS data.

There is no indication that the closure of the DMC program will impact patient wait times for transplants. The UNOS website says that if a patient wants to transfer to another hospital, “your primary waiting time can be transferred as long as you coordinate with both programs.”

The sources said some DMC staff were laid off as part of the program’s closure, but DMC did not confirm the number impacted.

“The DMC has decided to close the kidney transplant program,” Barczy said in a statement to Crain’s.

“We are working closely with patients currently on our wait list or receiving post-transplant care in the program to support them through their transition into another program in the area. Staff members impacted by the closure are being considered for other open positions available across the health system.”

Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

Advertising Section The 100K Ideas space on the first floor of the Ferris Wheel in Flint includes a common seating area that is available to the public. | PAUL ZEHNDER

storage yards for carmakers.

Premier’s revenue in 2019, when it employed 250, was $5.1 million, and was expected to double in 2020 before COVID hit and slowed things down.

But Forystek said it has taken off again, this year. He now employs 900 and expects 2021 revenue to be more than $20 million. “It’s been near vertical rise when you look at the chart,” he said.

He said the shortage of computer chips has been one reason for the growth. The shortage caused makers to stockpile partially completed cars that are awaiting chips, meaning more lots and cars to monitor.

Forystek has also been aggressively expanding his geographic reach.

What began as a small Flint operation and then expanded into Southeast Michigan now operates in Ohio, Indiana and Tennessee. It has just been licensed in Virginia and is seeking licenses in Pennsylvania, Kentucky, Georgia and Florida.

“Dave is one of those cases where the student exceeds the teacher,” said Hagerman.

Hagerman said the timing of the sale was good for him, allowing him to focus on the main portfolio company of his Skypoint Ventures investment firm.

Hagerman is the co-founder and former CEO of Flint-based Diplomat Pharmacy Inc., which was sold in 2019 for $300 million. That year, he founded Forum Health Enterprises to acquire medical practices nationally that focus on integrative medicine, an approach to health care that combines traditional medicine with what is often called alternative medicine, including acupuncture, aromatherapy, chiropractic manipulation, relaxation techniques, dietary and herbal approaches and life coaches.

Hagerman said he has grown Forum to 22 practices, including ones in Clarkston and Rochester Hills, and in Florida, South Carolina, North Carolina, Tennessee, Ohio, Indiana, Illinois, Wisconsin, Texas, Utah and California.

He said he has six more under contract that are expected to close by year’s end.

Hagerman said revenue was $12 million last year and will be about $25 million this year. “We should be at a run rate of $35 million by the end of the year and a run rate of $100 million by the end of next year,” he said.

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

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Real Estate Development Associate needed in the Canton, Michigan

office of Ashley Capital, LLC. Ashley Capital is the largest industrial real estate development firm in Michigan with a portfolio of over 20 million square feet. The Development Associate position is an ideal opportunity for a candidate with at least three years’ experience in the real estate field. The role would span across the construction and development teams including responsibilities such as land acquisition, pre-development activities (zoning, entitlements, environmental, brownfield TIF, wetlands, design, budgeting), and project management. Excellent written and verbal communication skills required. Competitive salary and benefits package. Please send resumes to Ashley Capital, 2575 S. Haggerty Rd., Suite 500, Canton, MI 48188, or email them to jgibbs@ashleycapital.com.

Contact: thenderson@crain.com (231) 499-2817; @TomHenderson2 DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 31

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COVID-19

Experts: Employers should prepare for chance rules pass muster Legal disputes over federal COVID-19 mandate policies likely to continue into 2022 With all three federal COVID-19 vaccination mandate rules held up in court, employers are left in limbo.

Prior to the court injunctions, health systems, federal contractors and employers with 100 or more employees were obligated to have in place a mandate in place for their employees by Jan. 4. The Occupational Safety and Health Administration rule allowed employers to also install a weekly testing regimen for unvaccinated employees. The other two federal rules prohibit the testing portion.

But the finality of those rules has changed with judges in several states halting the implementation of those rules until they are sorted in a legal venue. A U.S. District Court judge in Missouri granted a preliminary injunction against the Centers for Medicare and Medicaid Services’ emergency mandate rule on Nov. 29. “(The) CMS mandate raises substantial questions of law and fact that must be determined,” the judge wrote. “Because it is evident CMS significantly understates the burden that its mandate would impose on the ability of health care facilities to provide proper care, and thus, save lives, the public has an interest in maintaining the ‘status quo’ while the merits of the case are determined.”

Judges provided similar rulings for the emergency rules for federal contractors and companies with 100 or more employees.

But Southeast Michigan experts urge businesses to be prepared for implementation for if, or when, the

BLOOMBERG

BY DUSTIN WALSH

rules pass Constitutional muster.

“These legal disputes will likely continue into 2022,” said Courtney Nichols, partner and co-leader of the labor and employment practice at law firm Plunkett Cooney PC in Bloomfield Hills. “But we are still advising clients to make sure they continue to collect data and information regarding the demographics of their workforce. They need to know how many employees are vaccinated or not vaccinated and identify the departments where there are higher rates of unvaccinated individuals. It’s very important to have a framework in mind for what obligations they might have if these mandates survive scrutiny.”

The CMS, federal contractor and OSHA rules require companies to log and maintain the vaccination status of employees so they may be reviewed by federal agencies if need be. For the OSHA rule, in which testing is permitted, companies are allowed to pass the cost of testing to employees.

Nichols said it’s unclear when the courts will resolve the issue, but decisions could be made next month with implementation delayed from Jan. 4 to dates in February or March.

Many companies are likely celebrating the legal intervention on the mandate rules. According to survey data generated in November and provided to Crain’s from advisory

firm Willis Towers Watson, 87 percent of Michigan respondents, who collectively employ 229,000 in the state, were not planning to mandate the vaccine for employees.

Of those respondents, 92 percent were either very concerned or somewhat concerned a vaccine mandate would lead to employees fleeing their organization — although it remains unclear where the employees would go given the federal rules cover a large portion of employers.

Of the 3 percent of respondents that did plan to mandate the vaccine regardless of federal rules, more than half felt the opposite, that a vaccine mandate would improve recruitment and retention.

However, 90 percent of respondents to the Willis Tower Watson survey in Michigan said they plan to adopt a testing strategy for unvaccinated employees moving forward.

Matthew Disbrow, partner and cochair of the wage and hour practice at Honigman LLP in Detroit, said the legal hurdles and the rollout of the vaccination rules have once again left employers confused as how to proceed.

“As has been the case throughout the course of the pandemic, employers have been left scrambling on what they are supposed to be doing relative to employee protections.

This is more of the same,” Disbrow said.

However, many companies are pushing toward determining the vaccination status of their employees and whether those employees may be exempt from any of the mandates should they go into effect.

As Crain’s reported last month,

many companies are likely accepting reasonable religious exemptions to sidestep the rule.

Under federal law, employers are required to provide reasonable accommodations for employees who are exempt from mandatory immunization based on the Americans with Disabilities Act, Title VII of the Civil Rights Act and other federal laws that bar a mandate for medical or religious reasons.

Employers may be tempted to simply accept any and all religious exemption requests — some sects of the Dutch Reformed Church maintain an anti-vaccine stance — or medical exemption requests, such as severe but very rare allergies to vaccine ingredients.

Organizations are required under the rules to maintain records of why an exemption was granted for potential investigation. But federal regulators simply don’t have the resources to investigate most employers for exemption violations. Still, Nichols warns the exemptions need to stand up to scrutiny if the mandates push through the legal process.

“Companies have to ask themselves how these exemptions will look if they are scrutinized three or six months from now,” Nichols said.

“Are they able to plausibly assert these exemptions are compliant with the spirit and intent of the rules?”

In the meantime, Disbrow urges employers to “be prepared” and “continue planning” for the potential mandates.

Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

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From Assemble Sound, located at 2300 17th St. near the Michigan Central Depot, has an artist development deal in place with Atlantic Records. | ASSEMBLE SOUND

ASSEMBLE

From Page 3

Assemble, headquartered in a 13,000-square-foot church building at 2300 17th St. near the Michigan Central Depot, uses a studio model that sees artists from different genres convene in the same space with the intention of creating content, sharing resources and progressing together.

The company is temporarily working out of a 10,000-square-foot space on the city’s east side while renovations are performed on its Corktown space.

Assemble, founded by head of music Seth Anderson, head of sync & supervision Nicole Churchill, head of marketing Nicole Shackelford and

Koehler, works with aspiring artists through its label and management company, along with in its annual Studio Residency program, where artists receive free, daily access to the space without handing over any rights to their work. Each year, up to 20 new resident artists join the program.

“No record label would do that,” Koehler said. “Every executive who’s come through here has wondered about (the program). I think, fundamentally, the music business is about developing great artists and helping them to build their audience. We think giving artists free access to a creative space is the most effective way to develop great artists.”

In a joint statement, Atlantic Chair

A concert takes place outside Assemble Sound in Corktown, near the Michigan Central Depot. | COURTESY OF ANDREW MILLER

and CEO Craig Kallman, and Chair and COO Julie Greenwald said the Assemble staff has created a unique, extraordinarily fertile environment for emerging talent. By combining free studio space, the statement reads, and artist development resources with the residency program, Assemble has created a place where collaboration is natural and inspiring.

“The proof is in their amazing track

record in nurturing brilliant artists who have landed major label deals,” the statement reads. “We’re incredibly excited to be partnering with Assemble to launch a next generation of talent coming out of one of the world’s great music cities.”

Koehler sees great things coming from the partnership.

“We’re the closest building to (Michigan Central),” Koehler said.

“It’s crazy to think about a global music campus emerging next to Ford’s center of innovation. It’s going to be a magical combo, and we’re going to do some awesome things with Atlantic. We’ve never had a major label backing us. This is going to push us to the next level.”

Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981

32 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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STUDLEY

From Page 3

The 4,000-member chamber is down nearly 1,000 members since the government-mandated business shutdowns of March 2020, he said.

Studley and Holcomb sat down with Crain’s last week to talk about Studley’s career, a renewed debate in Lansing over business tax incentives, how voter-imposed term limits has changed the advocacy business in Lansing and what Studley thinks Gov. Gretchen Whitmer did wrong at the outset of the coronavirus pandemic.

The following is a partial transcript of the interview that’s been edited for clarity. ` Crain’s: In context we’re having right now at the Capitol, the way it’s been portrayed is we have disarmed on business attraction, that we don’t have all of the tools and really we don’t have much different than 2012 (when the 6 percent corporate income tax went into effect).

Holcomb: The tools we have are probably less effective. And what I think you see it’s an evolution — you try all of these things before and they build up to where you are now. And hopefully what we’re seeing now is an administration working cooperatively with the Legislature to make sure that both branches of government are involved. And I think that’s a good thing that, once again, we have oversight and there’s transparency, because that’s what we were lacking with some of the previous tools. And I think having the appropriations process in there, whether you’re a Republican governor or Democratic governor, whoever controls the Legislature, it’s a better process and the taxpayers are better protected. ` Crain’s: As the advocate and one who’s considered pretty powerful in this town, do you think the lobby corps has gotten more powerful from legislative term limits?

Studley: No, not necessarily. ` Crain’s: Why not?

Studley: Good lobbyists and good staff members have always been impactful to the senator or representative they work for, be a force multiplier. There are lobbyists who know their craft and understand their clients or members who’ve always been good. I think it’s very much a matter of who are you, do you know your members, do you know the process, are you a person of integrity.

Good lobbyists have always been impactful. There are other people who

Rich Studley (left) is retiring at the end of the year as president and CEO of the Michigan Chamber of Commerce after 40 years at the chamber, the last 13 of which as the business advocacy organization’s chief executive. Jim Holcomb (right), the chamber’s senior executive vice president and general counsel, will succeed Studley in the CEO’s office. | MICHIGAN CHAMBER OF COMMERCE

claim to be lobbyists who seldom talk to people who vote. ... Our members are less concerned about style points than were we able to pass a good bill? Yes or no? Were we able to stop a bad bill? Yes or no.

Holcomb: Before term limits, you had lobbyists who were friendly or had good relationships with legislators who were there longer. ... Now, lobbyists have to hustle and work harder because it’s a constant re-education process for the members. My big concern with term limits is the huge number of (legislators) that we turn over at once. Before term limits ... I think the average number of years in office was well less than 10 years ... but it was all staggered, you had a constant flow of people. Now you’re losing 20, 30, 40, 50 percent of your body in one fell swoop. ` Crain’s: As you look back at the tumultuous last 20 months, what do you think are the mistakes that Gov. Gretchen Whitmer made in the management of the pandemic and

the management of the economy?

Studley: One of the things that’s fun about this job is you get to know local chamber executives and state chamber executives. I’ve been on the board with the U.S. Chamber, I’ve served on the board of the Council of State Chambers. And so as we went through that, I was often on calls with local chambers and business groups here in Michigan but also comparing notes with Ohio Chamber of Commerce CEO Andy Doehrel, Indiana Chamber of Commerce CEO Kevin Brinegar, my counterparts in other states. I think no one could have anticipated a worldwide pandemic. To be fair to the governor, we were hit very, very hard. ... She did have to act quickly, I think with good intentions and no comparables. One serious mistake she made — which was not made by her counterparts in Indiana and Ohio — (was) shutting down manufacturing. The governors in Indiana and Ohio never shut down manufacturing entirely. I think the people advising the governor were

HOUSING

From Page 3

Repicky said most of the market’s sales are on the higher end, and bidding wars have pushed even more properties into higher strata. As those prices rise, he said, it will be even harder for first-time buyers to get into the market next year.

Builders haven’t been building at lower price points either, he said, compounding the issue. Even the city of Detroit, long known for its affordability, is becoming more expensive, Repicky said.

But there’s plenty of activity on the higher end, where Repicky said homes valued at $750,000 and above haven’t had the same inventory crunch that the rest of the market has, while still seeing brisk demand.

Showings on higher-priced properties have continued to rise, and Repicky said that were up 40 percent for

The high end of the housing market has seen brisk sales with less of the inventory crunch of other parts of the market. | LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

the past four weeks as compared with November and December of 2020, and 79 percent over the same period in 2019.

Year to date, the number of sales over $500,000 is up 48 percent over last year and 82 percent over 2019, and Repicky said as prices are pushed up,

knowledgeable about public health and government. One of the things that’s a little different in this administration is the number of people who are close advisers to the governor who have not owned and operated a business, seem to have not a lot of background or experience. I think when you see that train wreck coming at you, the instinct is to slam on the brakes. But the governors in Ohio and Indiana kept manufacturing open because it’s not like retail, it’s not like the hospitality industry. Most factories have a fence around them — you control ingress and egress. She also shut down the construction industry, when so much construction work is outdoors. Our friends in the building construction trades have been engaged in social distancing for years. Those were mistakes. They were serious mistakes, but they were honest mistakes. The challenge, I think, was so much pressure on governors to do everything possible.

Are you going to live out your days in Grand Ledge?

` Crain’s: You just turned 70 years old. What are you retirement plans?

Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

more sales will fall into that category.

“Bidding wars artificially pushed prices up higher,” he said. “We’ll still see appreciation next year.”

The Midwest as a whole is becoming more desirable, said Realtor.com manager of economic research George Ratiu. Ratiu said Indianapolis and Columbus are among the top five cities for sales and price increases next year, and he expects other cities like Detroit, Cleveland and Pittsburgh to draw people as well.

Of those looking at listings in metro Detroit, Ratiu said, 15 percent are from out of state, with Chicago; New York; Atlanta; and Washington, D.C., among the most likely to be searching. He said for people who can work remotely long term, the region’s bigcity amenities and it’s relative affordability might attract more buyers.

“It’s a real success story,” Ratiu said of Detroit. “We see Detroit continuing to perform well.”

Building permits in 2021 are 30

percent higher than in 2020, Ratiu said, and the bulk of those permits are single-family homes — something he said bodes well for the coming year, when buyers will have more options.

Lee, with Zillow, said unlike in other parts of the country, people continue to move closer to the city center in Detroit. That could benefit home owners even outside of downtown: areas within a 10-minute drive of downtown Detroit saw values grow 81 percent year over year this summer. Outlying areas with a 50-minute commute had values rise a relatively low 18 percent.

She also said the construction shortfall that’s hitting much of the rest of the country isn’t the case in this region.

“Detroit bucked national trends,” Lee said.

Studley: (chuckles) In January, I’m going to try my hand at teaching.

The U.S. Chamber of Commerce has a training program for chamber professionals. Jim and I and a lot of our leadership team are graduates of the Institute for Organizational Management. ... I’m going to spend a lot more time riding my motorcycle and fishing. And, as you know, I’m still on the board of Central Michigan University (he’s chairman of the board of trustees). That’s a lot of fun, but it’s a pretty substantial commitment of time. I’ve got one year left. We have a great university, but we have challenges ahead. I hope to do a little more teaching, maybe at CMU after I’m done with the board or with our friends at Davenport University. ... And I’ll cheer for Jim and the chamber from the sidelines.

Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

DECEMBER 13, 2021 | CRAIN’S DETROIT BUSINESS | 33

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12/10/2021 1:54:25 PM

THE CONVERSATION

Entrepreneur-turned-auto-exec looks to reinvent Continental Long before entering the automotive industry, Robert Lee, president and soon-to-be CEO of Automotive Technologies for Continental North America, was an entrepreneur in Silicon Valley. Lee, 55, founded a photo hosting portal for stock art and images, and then in 2000 he became president of startup Paltalk, a New York-based video chat service — ahead of its time, to be sure. Lee again was out ahead of a technology revolution at SK Continental, an EV battery joint venture that launched in 2013 and ended a year later. Now, Continental is looking to Lee’s entrepreneurial instinct and forward thinking to guide the 130-year-old automotive supplier through a period of reinvention, unprecedented headwinds and enormous industry change. The following conversation has been lightly edited and condensed for clarity. | BY KURT NAGL ` Your path to the C-suite of a major automotive supplier is a bit unconventional. What led you there?

Earlier in my career, I started off as a management consultant. I worked at AT Kearney and Boston Consulting Group, and then I left to be an entrepreneur. I started a company in Silicon Valley, and I ran a company in New York and was doing a lot of startup activities. Part of that, I was involved in running a new business for a large Korean conglomerate.

So, it was kind of a startup within a large conglomerate making lithium-ion batteries for automotive applications. At that point, Continental actually formed a joint venture with this Korean company that I was working at. The company was called SK Innovation. And so we formed a joint venture called SK Continental. We were responsible for developing battery packs for (plug-in hybrid electric vehicles).

I was an entrepreneur, and for me, batteries were part of that startup new business activity, and that’s what led me into the automotive space. `When you were heading up the battery joint venture, did you think electrification was going to be as big of a priority for automakers as it is now?

Well, at that time, I was very much focused on electrification, and so I knew that that was going to come.

It was just a matter of when. So, you know, this was 10 years ago, but even then, we knew that a lot of OEMs were focused on electrification. Tesla was just on the horizon, but it was clear that electrification was going to be a big part of the industry. I would say, in addition to electrification, people talk about CASE — the connected, automated, shared and electric — so all four of those I would consider as being very large mega trends in the industry. And, of course, they’re moving at slightly different speeds. `How would you say your experience as an entrepreneur influences your style as a CEO? There are a lot of changes happening in

our industry. So, we have to work fast.

We have to create new technologies and sometimes we have to do things in a much more iterative and faster way than what you’re normally used to doing in the automotive space. At the same time, there are some requirements on the automotive side which I have learned.

You have some safety requirements and robustness requirements, which is a little different from internet software.

But I think it’s the speed and the iteration that is really necessary now in order to develop things faster and test things a little bit more quickly. The OEMs, they’re trying to build vehicles now in 24 months as opposed to 40 months or 36 months, which was really common in the past. So, as a supplier, in order to keep up with that we also have to learn to develop faster and take risks and figure out how to be innovative. And that’s exactly what I try to bring, what I hope to bring.

business areas now. So, one of those is called architecture and networking.

They’re focused on the connected part of CASE. They work on telematics, as well as the electronics architecture and vehicles that are impacted by all of the connectivity requirements. Second part, we have a business area called autonomous mobility. So, in the automotive autonomous mobility, we’re focused on sensors like radars, cameras, LiDAR that go into autonomous vehicles, but also the entire system, on how to drive a vehicle without a person. The third part, we created a business area called smart mobility, which is focused on services, shared

vehicles and sort of alternative business models in our market space. So basically, we ’ve aligned our business now along these mega trends. On top of the three that I mentioned, we also have user experience because we feel that user experience is still a very big part of a vehicle going forward, even though those components in the vehicle are going to change. And then the last business area is called safety and motion. This is where our traditional braking business is.

Robert Lee, president and soon-to-be CEO Automotive Technologies Continental North America

`What sort of new technologies is the company working on?

So, one is what we call a transparent vehicle. We use cameras outside the vehicle to give you a visual image in the car of what the car would look like if the body was not there. So, when you’re doing parking along the curb, you cannot see how the wheel is touching the road now because the car is in the way, right? But with our technology, you’ll see exactly where the wheel is relative to the curb because it kind of wipes out the car in this view so that you know exactly where the curb is … We’re using cameras and modeling in order to give the customer a much better experience when it comes to close maneuvering.

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`How is electrification impacting Continental’s business?

I would say we’re impacted by all of those mega trends. And one of the things we did, we introduced our new organization structure just several weeks ago. We now realigned our business areas along these mega trends. We have basically five major

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RUMBLINGS

Shinola parent company names Awenate Cobbina CEO FORMER DETROIT PISTONS EXECUTIVE Awenate Cobbina will take the helm of Shinola’s parent company, Texas-based Bedrock Manufacturing Co., as CEO, effective Jan. 1.

Cobbina, 41, joined Bedrock Manufacturing in April as CEO of Bedrock Group LP, the Dallas-based investment arm of Tom Kartsotis, who owns Detroit-based Shinola and Seattle-based outdoor brand C.C. Filson.

Cobbina is taking over the CEO responsibilities to give Kartsotis more time to devote to his vision of

growing the Bedrock Manufacturing footprint, said Trish O’Callaghan, vice president, communications for Bedrock Manufacturing.

Caption Cobbina will remain based in Detroit, O’Callaghan said. He also serves as executive committee chair of the Michigan Economic Development Corp.

As CEO of Bedrock Manufacturing, he will work closely with Kartsotis, who will continue to play an active role with the company as founder, Bedrock said in a release.

“Awenate has become an active member of the BMC, Shinola and Filson leadership teams during the course of this year,” Kartsotis said. His “capabilities are exactly what we need to make the most of the investments that have been made over time.”

Before joining Bedrock, Cobbina led operations as a member of the executive leadership team for the

Biden-Harris transition.

Before that, he served as vice president of public and business affairs for Pistons Sports & Entertainment and the Detroit Pistons and as executive director of the Detroit Pistons Foundation.

In 2018, Cobbina served as deputy director of the Gov. Gretchen Whitmer-Garlin Gilchrist II transition. Previous to that, he served in the Obama administration.

Crain’s Detroit Business named Cobbina among its 40 under 40 in 2017.

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34 | CRAIN’S DETROIT BUSINESS | DECEMBER 13, 2021

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