Crain's Detroit Business, Jan. 21, 2019 by Crain's Detroit Business

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JANUARY 21 - 27, 2019 | crainsdetroit.com

EDUCATION

Challenges face MSU’s new president

Board of trustees plans to hire permanent leader for university by June

Need to know 

By Chad Livengood

 Board plans to hire permanent president by June

As interim president of crisis-struck Michigan State University, former Gov. John Engler’s sweeping administrative changes to personnel and policies were overshadowed at times by his adversarial relationship with the survivors of former MSU sports medi-

Engler’s tenure overshadowed by poor relationship with survivors of Nassar’s sexual abuse

clivengood@crain.com

Satish Upda: plans a different approach to crisis

cine doctor Larry Nassar’s sexual abuse. Engler’s finger-pointing was one of the reasons the MSU Board of Trustees forced him to resign last week, just shy of a full year as interim president following longtime President Lou Anna Simon’s resignation in the fallout from the Nassar scandal. Satish Udpa, the university’s exec-

utive vice president for administrative services for the past six years, was elevated by the board to interim president and plans to take a different approach to managing the university through its darkest crisis. “I don’t want to look back and point fingers because all we’ll end up doing is point fingers at each other,” Udpa said.

Udpa’s challenge is to not leave the kind of wake Engler did as he made questionable comments about Nassar’s survivors that board members deemed insensitive and demeaning. “His job is to be unmemorable,” said Matt Friedman, founding partner of Tanner Friedman, a Farmington Hills public relations firm. SEE MSU, PAGE 22

MEDIA

Bid for Gannett could portend more cuts at News, Freep

NORTH AMERICAN INTERNATIONAL AUTO SHOW

SPARKLE — AND WORRY

By Bill Shea bshea@crain.com

Job cuts have been a way of life at Detroit’s two daily newspapers for years, and they could get much worse if a hedge fund notorious for gutting journalist jobs has its way. That’s the view of some of the newspaper industry’s top observers analyz-

Need to know  Alden Global Capital seeks to buy control of Gannett Co. Inc.  Experts: Deeper newsroom job cuts likely if a takeover occurs

tives and analysts seemed to shuffle the show floor with eyes on their spitshined shoes instead of the Brough & Howarth-waxed cars and trucks. The number of journalists this year was down from the more than 5,000 who attended in 2018.

ing New York City-based Alden Global Capital’s hostile takeover bid for McLean, Va.-based Gannett Co. Inc. Alden, a distressed properties hedge fund that’s developed a bruising reputation for cutting newspaper staffing to the bone to maximize profits, has owned The Detroit News since 2010. Gannett, long the nation’s largest newspaper publisher and one with its own miserly reputation, has owned the Detroit Free Press since 2005. Alden on Jan. 14 announced it intends, through an entity called MNG Enterprises, to use its 7.5 percent ownership stake in Gannett (NYSE: GCI) as a springboard for an unsolicited takeover bid, offering $12 a share, or about $1.36 billion, to acquire Gannett’s 100 newspapers and assets.

SEE AUTO SHOW, PAGE 19

SEE GANNETT, PAGE 20

TIMOTHY A. CLARY/AFP/GETTY IMAGES

The NAIAS Car of the Year press conference is seen during day one of the 2019 The North American International Auto Show January 14, 2019, at the Cobo Center in Detroit.

Economy keeps growing, but ‘dark clouds’ hang over show, supply chain By Dustin Walsh dwalsh@crain.com

The economy is humming. The U.S. industrial production index, which measures manufacturing output, is expected to have closed out 2017 at a record high. U.S. employers added 312,000 jobs in December, sending the crainsdetroit.com

stock market up. The national unemployment rate was 3.9 percent in December and wages grew 3 percent for the year. The University of Michigan’s consumer sentiment index last year reached its highest marks since 2000. Nearly every economic indicator is good, and because they are so good, Vol. 35 No. 3

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the auto industry sold 17 million vehicles in the U.S. last year — the fourth straight year of 17 million units or more. Yet at the North American International Auto Show inside Detroit’s Cobo Center last week, attendees were downright morose. The 4,600 journalists and countless auto industry execu-

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Through her business, Lisa Bugg gives Rachelle Damico

Special to Crain’s Detroit Business

back to the Philippine commun

Uniforce Insurance Agency Founder Lisa Bugg addresses the monthly board meeting of the Council of Asian Pacific Americans, where she is executive director, at the Philippine American Cultural Center of Michigan in Southfield. BRANDY BAKER FOR CRAIN’S

if I Hills and Sterling Heights areas. ing to buy it or not, but I figured as I’ll be restructuring my company could get my foot in the door and ce Bugg Agency and moving my offi develop those relationships, most did this While marketing for CarTemps, I met my to Rochester. The reason I likely they’re going to buy. I grew was to allow my company to grow. James Jackson, who owned an Allcustomers from there. Horace Mann has assets of over $10 state agency in Southfield. He asked I did, and still do, a lot of outsourcall over educators serves and billion me to work for him, and that was the call I ing. I contract with different first Filipibeginning of my insurance career. insur- the USA. I’ll be the I centers in the Philippines (for na-owned agency ever to get this saw how successful he was, and ance quotes). Outsourcing cuts opportunity with Horace Mann. wanted to do the same. I never knew costs and has saved me more than I was going to stay in the field this 50 percent of my expenses. It’s also What other activities are you long, but I ended up loving the insurmy way of giving back to the Philipinvolved with? ance business. pines. I was announced as the year, This also has eld fi Being in the insurance own executive director for the Council Why did you decide to start your allowed me for years to spend more in company? my of Asian Pacific Americans time with my family and raise Northville, and I’m also the secreAfter working for Allstate, I wanted I children while they were growing tary of the Philippine Chamber of to become an independent agent. up. I believe every woman should a Commerce of Michigan. I’m also saw the luxuries many agents had, same. How- have that opportunity. ent coordinator

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PEOPLE

Al Glancy gave time, talent, treasures for decades

ENTREPRENEURSHIP

ENERGY

Race is on by Michigan utilities to end coal use

By Sherri Welch swelch@crain.com

When people talk about “philanthropists,” they’re talking about those who give their time, talent and treasure. Alfred Glancy III is remembered by his peers as someone who gave all three, decade after decade, to benefit causes he cared about and Southeast Michigan as a whole. Glancy and his wife, Ruth Roby Glancy, stepped up with significant gifts to not only save the Detroit Symphony OrchesAlfred Glancy III: tra, but also help Gave his time and the Detroit Institute of Arts and money to causes. the Detroit Zoo after the state Need cut funding to to know arts and cultural  Philanthropist, groups in half in energy executive the early 1990s. Alfred Glancy III The couple supdied Jan. 10 ported those  He challenged and other organizations for viewpoints to years. make sure all were Just as imexplored in coming portant to Glanto consensus cy, who died  Brought a social Jan. 10 at age 80 conscience to his after struggling corporate role long with Alzheibefore that came mer’s, though, in vogue was the need to give of his time, his daughter Jody Glancy said last week. “My father had a caveat that you put your heart in addition to your money with organizations,” she said. “You don’t just give money; (you) also give your time.” Glancy, the longtime CEO of MCN Energy Group, served up to four decades on the boards of prominent nonprofits in the region, remaining on many long after his 2001 retirement following MCN’s sale to DTE Energy Co. the year before. He brought a contrarian point of view, in a positive way, to each of the roles he held, aimed at ensuring all sides of an issue were explored. While that didn’t always win him friends, his challenging questions were highly valued, according to local leaders who knew him. Glancy spoke his mind, whether or not it was the consensus in the room at that time, said Eugene Gargaro, chairman of the Detroit Institute of Arts, which counted Glancy among its board members for 15 or more years. “That’s an important legacy,” Gargaro said. “It’s very, very important to have people with points of view that aren’t necessarily your own all the time expressing those so the decision that’s ultimately made can be the product of a lot of good exchange.” SEE GLANCY, PAGE 22

By Jay Greene jgreene@crain.com

fourth floor is occupied by Accenture. A handful of WeWork’s Detroit tenants agreed that they and their fellow businesses appreciate the ability to work separately together and to expand office space as needed. Today’s co-working spaces such as WeWork are brimming with millennials who want and expect plenty of creature comforts with their workday. Per WeWork’s 2018 Economic Impact report, nearly half of its U.S. members are between the ages of 25 and 34. The company’s two Detroit locations offer “members” comfy phone booths for private conversations — or a nap; Fruit Water on each of the floors (think pineapple and lemon); couches with pillows and blankets; and nooks for relaxing chats. What looks like a mini-convenience store along one wall is called the Honesty Market.

Renewable energy had a major moment last year when Michigan’s major utilities announced they would end the use of coal as an electricity generator by 2040. For 2019, the race will be on in earnest by large public utilities like DTE Energy Co. and Consumers Energy Co. to begin Need replacing retirto know ing coal plants  DTE Energy Co. with renewable and Consumers energy sources, Energy Co. have including solar pledged to end use and wind power, of coal by 2040 along with and increase ramped-up effigeneration of ciency programs renewable energy to help residential and business  Consumers’ customers regoal is for 43 percent renewable duce electricity use. by 2040; DTE has But what 25 percent by Michigan’s two 2030, but is biggest utilities expected to up planning that amount when are over the next it issues report to several decades Michigan Public flies in the face Service Commisof what the Donsion in late March ald Trump ad Trump ministration anadministration nounced in continues to push December. The generation of U.S. Environelectricity from mental Proteccoal, a move reject- tion Agency said ed by the state’s it will reverse the two largest utilities Barack Obama as inefficient administration’s coal emissions rule to ease restrictions on the nation’s coal industry, a move condemned by environmentalists and renewable energy advocates. In a statement, EPA Acting Administrator Andrew Wheeler announced the rule change would lift restrictions on coal emissions that he contends have limited construction of new coal plants. Obama-era emission rules require coal plants to add expensive carbon capture and sequestration technology that most scientists say works to reduce greenhouse gas emissions that contributes to global warming and climate change. It also improves air and water quality that leads to a reduction in chronic diseases like asthma and heart disease. “We are rescinding unfair burdens on America’s energy providers and leveling the playing field so that new energy technologies can be part of America’s future,” Wheeler, a former coal industry lobbyist, said in a statement. However, top executives of DTE and Consumers have told Crain’s in previous interviews that their companies plan to move forward in replacing more than two dozen aging and inefficient coal-fired plants regardless of what the federal government does or doesn’t do.

SEE CO-WORKING, PAGE 18

SEE COAL, PAGE 21

ROOM TO GROW Justin Mast of Bloomscape at WeWork in Detroit.

LARRY PEPLIN FOR CRAIN’S

Co-working spaces spawn successful companies By Marti Benedetti

Special to Crain’s Detroit Business

As Detroit’s office-sharing, co-working businesses such as WeWork grow, so are the businesses occupying their office space. Take Bloomscape Inc., an online plant company started last March in WeWork’s first downtown Detroit co-working space. Bloomscape CEO Justin Mast founded the company with one employee in a small WeWork office and now has 11 employees in considerably larger quarters. WeWork measures its success by how full its office space is but does not disclose the occupancy rates of its properties, said a WeWork spokesperson who asked not to be named. Bloomscape is in WeWork’s first downtown Detroit location in the Merchants Row building on Woodward Avenue and Clifford Street. WeWork opened that office in 2017,

Need to know

 Co-working businesses such as WeWork grow 

WeWork opened two offices in 2017

 Co-working spaces are brimming with millennials

“The flexibility and amenities here make it an easy place to be. I can focus on growing the business.” Justin Mast

and it includes seven floors. The second location, which opened later in 2017, consists of four floors in the 1001 Woodward office tower overlooking Campus Martius. The entire

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

MICHIGAN BRIEFS

INSIDE

From staff and wire reports. Find the full stories at crainsdetroit.com

CALENDAR

Senate GOP’s top priority is car insurance

Senate Republicans signaled last week their intent to make lowering high auto insurance premiums a top priority in the two-year session, proposing legislation that would make it optional for Michigan drivers to buy what is now mandatory unlimited medical coverage, the Associated Press reported. The bill is the first to be introduced by GOP senators who control the chamber, an indication that it is important for the majority. The measure lacks many specifics, which Republicans said is meant to show they are open to examining every area of the no-fault law that is driving up rates. “I think as we heard last year loud and clear from citizens throughout Michigan, we need to lower the cost of auto insurance. We need to make sure that we make rates more affordable for the driving public,” said the sponsor, Republican Sen. Aric Nesbitt of Lawton. For years, efforts to curtail Michigan's high auto insurance premiums have resulted in legislative stalemates, with some of the state's biggest political spenders and lobbyists — hospitals, insurers, business groups, plaintiffs’ attorneys, health providers and insurance agents —

Michigan’s highest-in-the-nation auto insurance rates have prompted years of debate.

lining up on various sides. In the last session, the GOP-led Senate passed a bill that would have made changes such as letting older drivers avoid paying most of a mandatory fee that covers unlimited medical benefits. The Republican-controlled House, meanwhile, defeated separate legislation — with Democrats and a number of GOP lawmakers voting no. Michigan, the only state to require unlimited lifetime coverage for medical expenses resulting from auto crashes, allows health providers to bill car insurers much more for care than health insurers pay. A $192 annual per-vehicle fee also is assessed to reimburse car insurers for expenses surpassing $555,000 for the catastrophically injured.

The new legislation says in-state drivers pay car insurance rates that are on average 83 percent higher than the national average. It states Republicans’ intent to let motorists age 63 and older with Medicare or other lifetime health care benefits not pay personal injury protection fees. Younger drivers could choose a lower amount of personal injury protection coverage, and health providers could be restricted from billing auto insurers more for medical services.

State allows 70 medical pot shops to reopen

Michigan is letting about 70 medical marijuana businesses reopen temporarily through March 31 with-

out it being a risk to their licensure. The state’s medical marijuana licensing board last week agreed with the recommendation and others proposed by regulators. The move is geared toward ensuring patients can still access marijuana at a time when a new regulatory system gets off the ground and there are supply shortages. The temporarily operating facilities had been told to close as of Dec. 31. The board also agreed to continue to not discipline licensed dispensaries that source their marijuana product through caregivers, under certain conditions. The reprieve also helps licensed growers or processors that buy marijuana from caregivers or temporarily operating facilities. The board approved five more operating licenses Wednesday, bringing the total to 104.

Services being restored at national parks

Basic public services are being restored at River Raisin National Battlefield Park in Monroe and Sleeping Bear Dunes National Lakeshore near Empire, the Associated Press reported. The National Park Service said it will use recreational fee revenue to pay for crews to performs tasks such as plowing snowy parking lots and trailheads, cleaning grounds and re-

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OPINION

PEOPLE

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strooms and removing trash. The move comes as the partial federal government shutdown enters a fifth week. Some volunteers came forward to help with maintenance after the parks shut down last month. At Sleeping Bear Dunes, outdoor areas of the lakeshore will remain accessible, although the visitor center in Empire and all other facilities will remain closed. Superintendent Scott J. Bentley says outdoor areas of the River Raisin battlefield will remain accessible in coming days, but the visitor center in Monroe is closed, like visitor centers at other parks around the nation.

CORRECTION A Deals & Details item in the Jan. 14 issue erroneously identified the headquarters location for Global Technology Associates LLC, which was acquired by Kelly Services Inc. Global Technology Associates is based in Reston, Va.

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Lear technology chief sets innovation strategy By Dustin Walsh

dropped 4.4 percent in December and imports plunged 7.6 percent. Absmeier said he recognized his division’s vulnerability and asked Scott directly during his interview if his vision would be axed at the first sign of economic trouble. “I joined because of Ray (Scott),” Absmeier said. “He has committed to this and told me they were going

dwalsh@crain.com

Seven months ago, newly anointed Lear Corp. CEO Ray Scott hired longtime automotive technology veteran John Absmeier to the newly created role of chief technology officer. Scott tasked Absmeier with turning the legacy automotive seating supplier into a 21st century tech company. So far, it’s working. Capitalizing on several past acquisitions, such as Israel-based GPS technology firm EXO Technologies and Troy-based connectivity supplier Arada Systems Inc., Lear last week founded a separate division to invest in startups and grow startup culture at the 102-year old company with Absmeier at the helm. Absmeier said John Absmeier: the division, Bringing culture Lear Innovation shift to Lear Ventures Possibilities, positions Lear for three objectives: develop a corporate strategy around mergers and acquisitions; establish a culture and mechanism to jump-start new ideas; and provide an independent research and development arm of the company. “Ray (Scott) has a big vision for the company, but he needs help getting there,” Absmeier told Crain’s Monday at the North American International Auto Show. “That’s why I’m here, to help identify the right business models and right places to invest.” The Lear Innovation Ventures Possibilities division is designed to position Lear in front of competitors that may not be looking to startups and new tech companies for inspiration, he said. Monday, Lear announced it had partnered with Techstars Detroit by offering them space at its downtown office as well as serving as a corporate sponsor and on its board. Absmeier said the partnership will allow Lear to vet new startups entering the Techstars Detroit startup accelerator program, which could open them up to investment or acquisition. Lear is seeking to grow its $5.5 billion electronics business because there’s slower growth in its larger, traditional $15 billion automotive seating business. Commodities and competition have limited margins in the seating business. But electronics systems are growing more quickly thanks to electrification, autonomous systems and overall more

dwalsh@crain.com

Chinese injection molding supplier Wellmei Holding Co. Ltd. plans to invest $1.9 million and create 71 jobs by establishing its first North American manufacturing operation in Troy. The subsidiary, Wellmei U.S. Inc., plans to lease 20,000 square feet to 40,000 square feet of space to accommodate mold production as it builds plastic injection-molding lines to

Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

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Lear has partnered with Techstars Detroit by offering them space at its downtown Innovation Center office as well as serving as a corporate sponsor and on its board.

Need to know

JJNew division aims to invest in startups, grow culture JJ$8B sales goal for E-systems division by 2025 JJLear to look at acquisitions and internally for innovation

electronics in vehicles. Lear forecasts growing its e-systems business to $8 billion by 2025, a 45 percent increase. “E-systems is absolutely our highgrowth segment,” Absmeier said. However, Lear might not get there via acquisition, as it’s slow-rolling its M&A strategy because valuations are too high, Absmeier said. In the mobility space, companies like dockless e-scooter firm Bird has a current valuation of $2 billion even though it’s not close to turning a profit. Ford Motor Co. paid an estimated $100 million for San Francisco-based e-scooter company Spin in November. Lear also turned to its own employees to boost its innovation. The

Southfield-based supplier is in the process of launching an internal investment device to fund the good ideas of its employees, Absmeier said. Lear is currently taking submissions from employees via its intranet portal. “We really want to cultivate the process and culture of innovation, so we needed a systematic approach to doing that,” Absmeier said. “Establishing that process is really helping present good ideas up (the hierarchy).” But Detroit auto executives have been sold the “culture of innovation” by California residents like Absmeier in the past and often those ideas get abandoned during the cyclical downturns of the industry. The economy is still humming in North America in early 2019, but signs of trouble are emerging. The National Automobile Dealers Association forecast U.S. car sales of 16.8 million in 2019, a drop off from the expected 17 million sold in 2018 and 17.25 million in 2017. The global picture looks worse. The world’s largest automotive market, China, reported exports

China’s Wellmei to open plant in Troy By Dustin Walsh

to keep innovation sacred. Because Lear has been so financially strong and conservative, I believe there will be more opportunities when times get tough. Ray knows that and knows this is part of a culture shift and that I’m trying to move that needle.”

serve the automotive and medical industries, according to a Michigan Economic Development Corp. memo. The state did not immediately identify the location of the Wellmei plant. The city of Troy will not offer a property tax abatement as part of the project, but the state is supporting the effort with a $355,000 performance-based grant through the Michigan Strategic Fund. The expansion is required due to

growing sales in North America and to circumvent tariffs the U.S. has placed in the import of Chinese products. Under President Donald Trump, the U.S. has installed tariffs on $250 billion worth of Chinese goods and Beijing responded with its own levies on $110 billion worth of U.S. goods. However, late last year, the countries agreed to a temporary ceasefire on new escalations if they can broker a trade deal by March.

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Top Royal Oak Beaumont hospital executive departs Need to know

By Jay Greene jgreene@crain.com

Rosanna Morris, R.N., is resigning as president of Beaumont Hospital in Royal Oak after two years to accept a position at M.D. Anderson Cancer Center in Houston, shaking up a shake-up in the executive ranks at eight-hospital Beaumont Health. Morris will be replaced by Nancy Susick, R.N., president of Beaumont Hospital in Troy. James Lynch, M.D., who is the Troy hospital’s senior vice president and chief medical officer, will become interim president of the Troy and Grosse Pointe hospitals. The announcement was shared with Beaumont managers Wednesday, according to several knowledgeable sources. But top executives knew for several weeks of the upcoming management changes. In a statement Thursday morning, Beaumont announced it will complete its management restructuring and key leadership position changes by Feb. 1. “Patients are gradually choosing more outpatient-based services, rather than inpatient hospital settings. We must create more access for our patients through a network of acute care campuses, outpatient and retail sites, and joint ventures and partnerships,” Beaumont Health CEO John Fox said in the statement. “This restructuring helps ensure our future success in the ever-changing world of health care.” Carolyn Wilson, R.N., Beaumont’s COO and executive vice president, told Crain’s the restructuring plans dated back to earlier in 2018 when the health system began crafting a new three-year strategic plan that would begin in 2019. She said it heavily focuses on expanding outpatient care services as patients are

JJBeaumont Royal Oak president resigns for new position in Texas JJMove prompts shift in other personnel JJChanges come amid broader management restructuring to address shift to more outpatient-based services

The president of Beaumont Hospital in Royal Oak resigned after two years to accept a position in Houston.

seeking more convenient care settings and payers are directing reimbursement incentives toward more lower cost facilities. The management restructuring plan was completed in December, but then Morris informed Wilson on Jan. 2 that she would be leaving for a job at M.D. Anderson. “We had to rethink how to fit that into the rest of the restructuring plan,” she said. It then led to the Susick and Lynch promotions, she said. Since Beaumont became a larger system in 2014 with the addition of four-hospital Oakwood Healthcare and Botsford Hospital, Wilson said the system has greatly increased revenue and market share in both inpatient and outpatient service lines. She said inpatient and outpatient care revenue has grown equally over the past few years. “I firmly believe the time to pivot is when you are in position of

strength,” she said. “The feedback from patients is for more outpatient care. We got feedback from nurses and employees. ... More doctors want ambulatory surgery services.” Last August, Beaumont announced plans to partner with Atlanta-based WellStreet Urgent Care to build 30 additional urgent care centers by the end of 2019, which is part of the plan to expand outpatient services, she said. “We will be adding more outpatient facilities and are working on that as well as a part of the restructuring,” Wilson said. Other management changes include: J David Claeys will become president for the Dearborn and Farmington Hills hospital campuses. J Christine Stesney-Ridenour will become president over the Taylor, Trenton and Wayne hospital campuses.

J Connie O’Malley, R.N., will become president of outpatient services, which is a new position. J Lee Ann Odom will become president of shared services, which is a new position. She will also remain the leader for Beaumont’s mental health expansion plans. Besides Morris, two other Beaumont executives are departing. They are Rick Swaine, president of Beaumont Hospital in Grosse Pointe, to pursue other opportunities. He has been with Beaumont for 30 years. And Eric Widner, president of Beaumont Hospital in Wayne, also will leave Beaumont to pursue other opportunities. He has been with Beaumont the past 10 years. Earlier this month, Paul LaCasse, D.O., Beaumont’s co-founding executive and vice president of postacute care and diversified business operations, announced he will retire March 31.

Rosanna Morris: Leaving for Houston.

Nancy Susick: To replace Morris in Royal Oak.

“We celebrate the successes and contributions of our departing leaders and wish them the best in their future endeavors,” Beaumont Health COO Carolyn Wilson, R.N., said in a statement. “We are also excited about our leaders who will take on more responsibility and help our health system become the national leader for patient and family-centered care.” Beaumont Health operates eight hospitals in Southeast Michigan with 3,429 beds, 187 outpatient sites and has nearly 5,000 physicians on its medical staffs. Its total net revenue last year was $4.5 billion and employed 38,000 workers. Earlier this month, Beaumont completed the sale of its home health and hospice company to Alternate Solutions Health Network of Toledo, Ohio. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

DMC downtown hospital chief Steiner to leave Feb. 8 By Jay Greene

Need to know

jgreene@crain.com

Scott Steiner, who has been CEO of the adult downtown hospitals of Detroit Medical Center the past two years, will leave DMC Feb. 8 for a job at an Albany, Ga., hospital system, Crain’s has confirmed. Steiner, who is CEO of DMC Detroit Receiving, DMC Harper University and DMC Hutzel Women’s hospitals, has been with DMC’s owner, Dallas-based Tenet Healthcare Corp., since 2012. He had been with Vanguard Health Systems, which Tenet acquired Scott Steiner: in 2012, since With Tenet 2007. Healthcare since Steiner will 2012. become president and CEO of Albany, Ga.-based nonprofit Phoebe Putney Health System effective March 1. In statement, Tony Tedeschi, M.D., DMC’s CEO, said Steiner has agreed to stay on for the next three weeks to help transition to an interim CEO, who is expected to be named soon. Typically, Tenet promotes hospital executives from within its system. “Scott Steiner has been a strong

JJScott Steiner, chief of Receiving, Harper and Children’s hospitals, to leave JJTakes job at Georgia health system JJDeparture comes after controversy over firings of cardiologists from leadership positions

Scott Steiner is CEO of DMC Detroit Receiving, DMC Harper University and DMC Hutzel Women’s hospitals.

advocate for the DMC, its patients and employees,” Tedeschi said in a statement provided to Crain’s. “He has been an impactful leader, a team player and an invaluable partner to me. As Scott takes the next step in his career, we want to thank him for the outstanding work he has done. ... His talents and personable de-

meanor will be missed.” Steiner was unavailable for comment. His departure comes after a controversial period during which he fired several top cardiologists for alleged code-of-conduct violations. Last October, Steiner explained in an email to employees why he was terminating several top cardiolo-

gists from their administrative duties at DMC. The chief of cardiology, Ted Schreiber, M.D., also resigned in protest over alleged quality-of-care issues within DMC. The cardiologists countered they were subjected to retaliation because they had complained about quality-of-care issues and problems

within the cardiology program. The three cardiologists relieved of their residency program duties were Mahir Elder, Amir Kaki and Tamam Mohamad. Two people familiar with the matter said DMC has suffered a more than 50 percent reduction in cardiology procedures since last fall, leading to a drop in revenue. Tedeschi credited Steiner with starting the expansion of DMC’s behavioral health services and his involvement in helping to sign a fiveyear agreement with Wayne State University Physicians Group. Tedeschi noted that Steiner oversaw Harper University Hospital achieving an “A” grade from the Leapfrog Group for patient safety. Harper also was recognized as a “best hospital” for 2017-2018 by U.S. News and World Report in four categories, including diabetes, neurology, gastroenterology and nephrology. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

OPINION EDITORIAL

TALK ON THE WEB

Re: Shake-up at Beaumont Health

“Patients are gradually choosing more outpatient-based services, rather than inpatient hospital settings. We must create more access for our patients through a network of acute care campuses, outpatient and retail sites, and joint ventures and partnerships,” Beaumont Health CEO John Fox said in the statement. Really? I’ve had both in-patient and out-patient surgery at Beaumont and I never made such a choice, I was simply told, “this is done in an out-patient facility” or “you will be admitted to the hospital.” Good to know that this is really all about patient choice and not just making money. In the future, should the circumstance arise, I will be sure to state my choice. west sider

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

Now-former MSU interim President John Engler speaks at an MSU board of trustees meeting last June.

Lessons from Engler’s year at MSU

n interim CEO can take two paths. Path one: Don’t rock the boat, keep the trains running on time until a permanent executive is named. Path two: Make waves, do the heavy lifting required to allow a permanent successor a smoother path. John Engler chose the second path in taking the job of interim president at Michigan State University. Unfortunately, he seemed ill-prepared for handling the emotional and political nuances from the Larry Nassar debacle at MSU. Even Engler fans have been stunned by his word choices and missteps during his oneyear tenure, which ended with his resignation letter last week. Despite gains in health and scientific research, enrollment and fundraising, MSU continues to suffer from the Nassar scandal. Engler is an accomplished executive with a reputation for being politically savvy. But his tenure as Michigan’s governor,

1991-2003, began when hardly anyone knew what the internet was, and ended before the rise of Facebook. He either didn’t understand or underestimated the power of social media to “own” a narrative that supported the Nassar victims’ story that MSU cared more about its reputation than the victims. They wanted empathy at the top — and never felt they got it from either Engler or the president he replaced, Lou Anna Simon. But the culture change the victims also demanded is under way. Engler made substantive changes in processes and policies at the university but didn’t get credit because of his own gaffes and because the Nassar narrative is owned more by social media rather than facts. Victims have faulted Engler for caring more about reputational risk than for victims. As interim CEO, his job was to balance both. He absolutely had an obligation to the institution and to the victims. The university is a $1.4 billion-a-year institution with about

50,000 students. Resolving the legal claims quickly and fairly was indeed part of his job and the first big step — a $500 million settlement with more than 300 victims — was announced in May. This was a huge step — not only in aiding victims but also in helping to attract the next president to MSU so he or she could begin a healing process. By contrast, Penn State University is still handling claims from the Jerry Sandusky debacle — eight years after allegations of Sandusky’s sexual abuse of young boys on campus became public. At last count in 2018, the cost to the university to settle claims for as many as a reported 26 victims was $109 million. Engler’s public legacy, rather than as an effective albeit sometimes polarizing tenure as Michigan’s last three-term governor, may now forever be shaped by this one-year term at MSU. It’s a case study for anyone seeking an elected or appointed public leadership position.

Re: MSU names Satish Udpa Let’s remember, no one really wanted to clean up the mess from (Lou Anna) Simon and (John) Engler did it. Like him or not, he did step in to help and donated the pay to MSU. Let’s hope they didn’t put a “puppet” in to push around until a successor is found. Dennis Prayers for this man that he can be a catalyst for positive change at this great university. ADA3

Re: Engler’s approach was his downfall Don’t know what they were thinking from day one. Knew he was the wrong choice for the job. Knew he would have inappropriate comments. He is and always will be a member of the old boys club. Sandra Hunt

MORE ON WJR Listen to Crain’s Group Publisher Mary Kramer and Managing Editor Michael Lee talk about the week’s stories every Monday morning at 6:15 a.m. Mondays on WJR 760 AM’s Paul W. Smith Show.

Detroiters ill-served by inconsistent school choices

he start of a new year is a good opportunity to take stock, and I think Detroit can feel pretty good about the progress made in 2018. In 2019, infrastructure and roads are a massive pain point for the region (and the state.) But it sounds like our new governor will pay close attention to her famous campaign promise. So to me, the issue that demands everyone’s attention is education. Not many people realize Detroit’s unique position: Almost half of the children in Detroit go to a school in the Detroit Public School Community District; almost half go to a publicly financed charter school. The rest

KC CRAIN Publisher

— about 30,000 — go to private schools or a school outside of city boundaries. State law requires a charter to be “authorized” by a recognized authority, usually a state university. Charter

schools are then operated day-to-day by a mix of for-profit and nonprofit management companies which technically report to that school’s own board. Charter school performance is all over the map. Some are better than traditional public schools nearby; many are worse or about the same. Some authorizers tolerate lower-performing schools than others. There’s no consistency across charter schools in Detroit. You can imagine how frustrating it is for our new superintendent when he has control of less than half the possible school population of K-12 kids in Detroit. And that he has to watch those 30,000 kids leave Detroit

every day for a school outside the city’s borders. Like the auto industry has experienced, we have over-capacity, too many schools — about 200 buildings — for 100,000 kids. As populations have shrunk across the city, the buildings for the most part haven’t moved. That has created large deserts with no schools in some places and other parts that have far too many competing for the same kids. How can a parent find the best school? It’s hard to navigate. We need a universal grading system that holds each school — traditional public, charter or private — to the same standards. That’s the only way to help

parents to make informed decisions. Don’t get me wrong; there are many bright spots across the city. I’ve learned a lot about the issues as chair of the board for the Detroit Children’s Fund, which supports quality schools in Detroit. It’s just time for everyone to start paying attention. We can build new buildings, restaurants and stores, but until we fix our schools, longtime Detroiters will continue to be ill-served and Detroit will lose young professionals when they start families. KC Crain is publisher of Crain's Detroit Business and president of Crain Communications Inc.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

Gilbert gets Detroit riverfront land with bankruptcy creditor By Kirk Pinho kpinho@crain.com

Dan Gilbert is on tap to develop 2.75 acres of east Detroit riverfront land after a quiet $5 million sale involving one of the city’s most vociferous bankruptcy creditors, Bermuda-based Syncora Guarantee Inc. The sale of eight parcels on Franklin, Atwater and Guoin streets to Atwater Owner LLC for $1.82 million per acre was recorded with the city in November. The Economic Development Corp. was the seller. Those parcels — 1303 East Atwater; 1325 East Atwater; 1365 East Atwater; 1399 East Atwater; 1310 Franklin; 1340 Franklin; 1364 Franklin; and 1370 Guoin — are identified in an offering memorandum obtained by Crain’s in March 2017 as being about one-quarter of the 11.65 acres of east riverfront land a subsidiary of Syncora, Pike Pointe Holdings LLC, received development rights to as part of its 2014 bankruptcy settlement with the city. A spokeswoman for Gilbert’s Detroit-based Bedrock LLC real estate development, management, ownership and leasing company confirmed that Atwater Owner is a subsidiary. “We are excited to work with Pike Pointe to design and develop this site that sits in an area primed to see a lot of activity in the coming years as downtown’s momentum begins to spread east along Jefferson Avenue and the riverfront,” Jim Ketai, chairman of Bedrock, said in a Wednesday statement to Crain’s. “The Atwater site has good potential for future development with close proximity to the Detroit River, where we are seeing strong interest and activity.” Details of how the deal is structured were not released last week, nor were specific plans for the property, which immediately to the west abuts a 3.1-acre property slated for a $136 million development with 360 apartments and a 120-room hotel by Detroit-based City Growth Partners LLC. The company is paying $5.61 million for the site, or $1.81 million per acre. Development rights for the Syncora property expired last month, according to the offering memorandum obtained by Crain’s. Development rights for another 8.9-acre site to the east expire in December 2021, the OM says. The Atwater property can accommodate 400,000 square feet of mixed-use development, while the larger property referred to as the Chene site can accommodate 1.8 million square feet for a total of 2.2 million square feet. The Detroit Economic Growth Corp., which staffs the Economic Development Corp., declined comment. An email was sent to a local Syncora representative on Wednesday. This isn’t the first deal Bedrock and Syncora have teamed up on. The two companies are working together on a redevelopment of the former Detroit Police Department headquarters building at 1300 Beaubien St. near Greektown in a deal that was announced in February 2018. Recent plans have included a 200-room boutique hotel. Gilbert is the founder and chairman of Quicken Loans Inc. and Rock Ventures LLC with a net worth of $6.5 billion, according to Forbes. As the most influential business

KIRK PINHO/CRAIN’S DETROIT BUSINESS

Dan Gilbert is teaming up with one of Detroit’s most vocal creditors from its bankruptcy case to develop a 2.75-acre property on the east Detroit riverfront.

magnate in Detroit, he owns more than 90 properties in the city — buildings and parking decks, mostly — and his company says he has invested billions in real estate redevelopment and has billions more on tap in new construction, primarily in the downtown core where his companies are headquartered and he employs north of 17,000 people. Crain’s asked him Dec. 13 if there was progress on his long-in-discussions projects on the east riverfront, and he said “no real news on that.” Those projects include the Syncora property, property owned by a General Motors Co. affiliate east of the Renaissance Center, and the 43-

acre Uniroyal Tire Co. site near Belle Isle. Syncora settled a $333 million bankruptcy claim for $44.8 million in new debt, development rights to the east riverfront land, a lease to operate the Detroit-Windsor Tunnel, a long-term lease of a Grand Circus Park parking garage and development rights to the former police headquarters building at 1300 Beaubien. An entity called Pike Pointe Atwater LLC was registered with the state in November. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

Crain’s Newsmakers of the Year dominated headlines in 2018 and are fixtures in the business community and beyond. Join us along with 400 other leaders from the region as we recognize them at our annual luncheon.

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Learn how they made news and kickoff your New Year by networking with an affluent audience. You’ll also hear from Bill Ford Jr., executive chairman of Ford Motor Co. and 2018 Newsmaker of the Year, as he has a fireside conversation with KC Crain, publisher of Crain’s Detroit Business and president of Crain Communications.

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FOCUS

WOMEN IN LEADERSHIP

A HERITAGE OF SERVICE

Through her business, Lisa Bugg gives back to the Philippine community Rachelle Damico

How did you get involved in the insurance business?

Special to Crain’s Detroit Business

Lisa Bugg is the founder of Uniforce Insurance Agency, an independent broker agency based in Sterling Heights that offers automotive, life, home and business insurance. Bugg and her family immigrated to the United States from the Philippines when she was 9 years old. When Bugg was about 18 years old, she waited tables and worked as a telemarketer for Visa and Mastercard. After that, she worked as a marketing specialist for CarTemps Rental Agency, a car rental agency based in Ohio, from 1989-1992. Her insurance career began at James Jackson Allstate Insurance agency in Southfield, where she sold property and casualty insurance from 1992-1994. She founded Uniforce in 1994. What was your experience emigrating from the Philippines to the United States?

I grew up in Tondo in Manila. We had a maid and a chauffeur growing up, but we were surrounded by poverty. It’s difficult to thrive in the Philippines. Most people need a Ph.D. or a master’s degree to really climb the ladder. My dad was a successful businessman in the Philippines, but he gave that lifestyle up because he believed the U.S. would provide better

While marketing for CarTemps, I met James Jackson, who owned an Allstate agency in Southfield. He asked me to work for him, and that was the beginning of my insurance career. I saw how successful he was, and I wanted to do the same. I never knew I was going to stay in the field this long, but I ended up loving the insurance business. Why did you decide to start your own company?

Lisa Bugg at age 3 in the Philippines.

opportunities for his children. When we moved here, my dad worked as a stock boy at a grocery store. We were on food stamps back then and wore secondhand clothes, but I didn’t realize how poor we were until my 20s. That’s because my parents instilled a positive mental attitude in me. They always saw the bright side of things. My parents were very involved with the Philippine community. There’s a large population here. When we were around them, it felt like we never left home.

After working for Allstate, I wanted to become an independent agent. I saw the luxuries many agents had, and I felt I could do the same. However, I kept getting turned down by several companies, and it was very frustrating. That’s when I decided to do it on my own. The first five years were the hardest. I developed my first customers by calling different companies, such as medical and dental businesses. Back then, I went to the library and found lists of different names and contacts. I got my foot in the door by doing educational presentations regarding ways to cut costs on insurance, and would buy pizza for them for lunch. People were willing to listen to me while they ate. I was taking a chance on whether they were go-

ing to buy it or not, but I figured if I could get my foot in the door and develop those relationships, most likely they’re going to buy. I grew my customers from there. I did, and still do, a lot of outsourcing. I contract with different call centers in the Philippines (for insurance quotes). Outsourcing cuts costs and has saved me more than 50 percent of my expenses. It’s also my way of giving back to the Philippines. Being in the insurance field has also allowed me for years to spend more time with my family and raise my children while they were growing up. I believe every woman should have that opportunity. What are your plans for the company now?

This February I’m transitioning the company to be a captive agency (an agency that only works with one insurance company) for a multi-line financial insurance company called Horace Mann (an insurance company based in Springfield, Ill., that primarily services teachers and school employees). We’ll be offering different lines of insurance products, including auto, home, renters, savings and retirement insurance. I’ll be taking over accounts that need servicing for the Rochester, Rochester

Hills and Sterling Heights areas. I’ll be restructuring my company as Bugg Agency and moving my office to Rochester. The reason I did this was to allow my company to grow. Horace Mann has assets of over $10 billion and serves educators all over the USA. I’ll be the first Filipina-owned agency ever to get this opportunity with Horace Mann. What other activities are you involved with?

This year, I was announced as the executive director for the Council of Asian Pacific Americans in Northville, and I’m also the secretary of the Philippine Chamber of Commerce of Michigan. I’m also a local exchange student coordinator for the Council on International Educational Exchange (a nonprofit organization that promotes study abroad programs) and a mentor and trainer with the John Maxwell Company (a leadership development organization that offers corporate leadership training and coaching programs). I’m also the founder of Purpose for You Ministry, a nonprofit organization, where I’ve been doing outreach ministry every year for the last five years. Last year, we went to the Philippines. It’s important for me to give back to my community.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

FADI NASSAR/AMSON NASSAR DEVELOPMENT

The former Met Hotel is being demolished for redevelopment of the 17.43-acre site it sits on in Troy at Crooks Road and I-75.

Demolition of former Met Hotel makes way for redevelopment By Annalise Frank afrank@crain.com

The vacant Met Hotel in Troy is being demolished to free up some of the city’s most prime real estate for redevelopment. A 17.43-acre property at Crooks Road and the I-75 freeway described by a Troy official as “borderline blight” has sat since the Met Hotel and Lakes restaurant on the site closed in 2016 around a transfer of ownership. Now progress on the site is widely visible, with major structural demolition work starting in December 2018 and expected to finish this spring. An entity registered to Mohammad Qazi, CEO of Southfield-based Ciena Healthcare, bought the site at 5498 Crooks Road in early 2016 for $10 million, according to a First American Financial Corp. property report and CoStar Group Inc. The shape of the incoming development hasn’t yet been determined, representatives of property owner Prime Land Holdings LLC told Crain’s. The entity is registered to Qazi with the state and not a project of Ciena Healthcare. “It’s one of the most important sites for redevelopment in the city,” Troy City Manager Mark Miller said. “It’s a great site and it’s borderline blight. We get most of our revenue from property tax, so we want redevelopment.” Glenn Lapin, economic development specialist for the city of Troy, added that the city looks forward to the building coming down and freeing up property for new use. Discussions have occurred with some potential end users and decisions are expected this year, according to the two Prime Land Holdings representatives: real estate firm Colliers International’s senior vice president Gregory Bockart and executive vice president John Fricke. They’ve had conversations or seen interest in the realms of health

Need to know

The Met Hotel and Lakes restaurant, which both closed in 2016, are being demolished J

J Entity led by Ciena Healthcare's CEO owns the 17.5-acre site on Crooks Road by I-75 J It's being marketed for new uses including health care, mixed-use

“It’s one of the most important sites for redevelopment in the city. It’s a great site and it’s borderline blight. We get most of our revenue from property tax, so we want redevelopment.” Mark Miller, Troy city manager

care, and mixed-use including hotels or high-end residential, Fricke said. They expect decisions on tenants to be made this year. “For north Troy ... there’s nothing, really, with that kind of exposure and easy access for I-75,” Bockart said. On the gap between the purchase and the commencement of major demolition work, he said: “My client bought it with the intention of personally developing the site and was more focused on some of his other projects ...” Bockart said major, visible demolition began in December, but work on the process started around six to seven months ago. The cost of demo is to be determined. Birmingham-based Amson Nassar Development is overseeing demolition through several subcontractors, according to CEO and pres-

ident Fadi Nassar. “They’re taking it down back to front and piece by piece,” Lapin of the city of Troy said. “The whole lot is fenced in and secured.” Qazi is not the first to plan a redevelopment of the site. The parcel and hotel’s previous owner, Laguna Beach, Calif.-based New California Hotel Corp. and associated entities, announced plans in 2013 to create a new retail and entertainment development there. Those plans were never realized. Qazi recently made news in Detroit for purchasing a prominent, 3.78-acre piece of Midtown real estate by Whole Foods Market for $15 million. The C-shaped, nearly 200,000-square-foot Met Hotel — which Bockart called “functionally obsolete” and small for the nearly 17.5-acre site — is coming down. So is a connected restaurant building that housed Lakes restaurant in the former home of Charley’s Crab. Lakes, previously called Northern Lakes Seafood Restaurant, moved to the Met Hotel in 2013. Before that, it was in the Radisson Kingsley Inn in Bloomfield Hills. Detroit-based The Epicurean Group operated Northern Lakes Seafood. The group’s president, Eric Djordjevic, confirmed to Crain’s that Lakes closed sometime around the transfer of property ownership. The Epicurean Group had spent about $500,000 converting the tri-level restaurant from Charley’s Crab to Northern Lakes Seafood. The space was known for its nautical-themed tchotchkes, stainedglass window and carved woods. The restaurant group is also known for its now-closed Coach Insignia atop the Renaissance Center in Detroit; it operates several restaurants including Novi Chophouse and the Nomad Grill in Southfield. Annalise Frank: (313) 446-0416 Twitter: @annalise_frank

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Rate settlement halts Consumers Energy donations of corporate money to political groups By Chad Livengood

Need to know

clivengood@crain.com

State utility regulators are taking aim at the tens of millions of dollars Michigan energy companies have donated to not-for-profit organizations that influence state political campaigns. Consumers Energy Co. has agreed to a ban on donating corporate cash to “issue advocacy” organizations — often called “dark money groups.” Consumers has given more than $40 million to one such organization. The agreement, buried in a Michigan Public Service Commission electric rate-setting settlement issued last week, prohibits Consumers from donating money to 501c(4) nonprofits and 527 political organizations that engage in issue advocacy campaign advertising that stops short of outright supporting or opposing candidates. “Consumers Energy agrees that it will not contribute any of its corporate treasury monies to an Internal Revenue Code 501c(4) entity or an Internal Revenue Code 527 entity during the period of time in which the rates established in this settlement agreement are in effect,” the MPSC decision said. The prohibition is effective for the rest of 2019, expiring on Jan. 1, 2020. But the ban could remain in place through the November 2020 election because the state’s utility regulators have 10 months to decide a future

JJPublic Service Commission curtails

Consumers Energy’s “issue advocacy” in elections JJPSC prohibits donations to nonprofit political organizations JJConsumers has donated $43.5 million since 2014 to politically active nonprofit group run by ex-lobbyist

LANE MONTGOMERY VIA WIKIMEDIA COMMONS

Jackson-based Consumers Energy Co. has been ordered by the Michigan Public Service Commission to stop donating corporate profits to not-for-profit organizations engaged in “issue advocacy” that influences elections in the state Legislature.

electricity rate-setting case. Between 2014 and 2017, Consumers Energy poured $43.5 million into the coffers of Citizens for Energizing Michigan’s Economy, a 501(c)(4) social welfare organization run by current and former company executives,

according to the company’s financial disclosures with the MPSC. In 2016 alone, the company contributed $20 million to CEME, which played an active role in several state Legislature primaries last summer. Sally Talberg, chairwoman of the Public Service Commission, said the three-person commission was concerned by the “amount and use of these funds” by Consumers Energy in political campaigns. Consumers Energy has long said the money it contributes to CEME comes from shareholders and not ratepayers. “The political contributions of Consumers Energy were not funded from customer rates, rather from our shareholders — people that own the company — and not customers’ bills,” Consumers spokeswoman Katie Carey said in a statement. “We at Consumers Energy stand for the people of Michigan and are engaged in the political process to support pragmatic policies that focus on safe, reliable, and affordable energy for our customers in Michigan.” But the MPSC decision involved ratepayer money, raising questions about why the prohibition would be included in a rate-setting case before the state commission that regulates Consumers Energy. “I can’t imagine why the PSC would be trying to regulate a corporation’s charitable giving unless they believed they were using ratepayer money to fund these dark money front groups,” said former state Rep. Gary Glenn, a Midland County Republican and fierce critic of Consumers Energy. Glenn and his wife, state Rep. Annette Glenn, were top targets of CEME in last year’s elections as the group deployed a barrage of advertising against the couple. Gary Glenn sought a Senate seat, while Annette Glenn ran for his old House seat. Only Annette Glenn prevailed. Talberg said Consumers Energy, a subsidiary of Jackson-based CMS Energy Corp. (NYSE: CMS), was using funds the company “earned in the form of a profit from its business operations” and that the money did not

“The settlement agreement reached in Consumers’ recent electric rate case addresses this issue on a goingforward basis by prohibiting Consumers from funding political activities of this nature.” Sally Talberg, chairwoman of the Public Service Commission

come from ratepayers. The PSC regulates how Consumers Energy and DTE Energy Co. spend ratepayer dollars because of the near-monopoly the two utility giants have over the state’s electric and natural gas energy market. “While the utility was not prohibited from using its profit in this manner, the commission shares the concerns of other stakeholders about the amount and use of these funds by the regulated utility,” Talberg said in a statement. “The settlement agreement reached in Consumers’ recent electric rate case addresses this issue on a going-forward basis by prohibiting Consumers from funding political activities of this nature.” It’s unclear what “stakeholders” raised concerns about Consumers Energy’s political funding practices. Negotiations over rate case settlements with the PSC are confidential, commission spokesman Nick Assendelft said. DTE Energy also has donated to a similar 501(c)4 group engaged in issue advocacy in elections called the Alliance for Michigan Power. Both the Consumers- and DTE-affiliated groups list the same Okemos law firm as their addresses in state incorporation records. So far, the PSC has not subjected DTE Energy to the same prohibition on funding issue advocacy in political campaigns with money from company bank accounts. “DTE has not had any similar agreements or language in our past or current rate cases or other MPSC filings,” DTE spokesman Peter Ternes said in an email. DTE currently has a rate case before the commission, Ternes said. CEME has operated as Consumers Energy’s issue advocacy group for a half-decade, running television and radio ads about candidates and sending mail advertising to voters. “Our primary focus is to educate legislators and the general public on issues facing Michigan that focus on energy and the economy,” said Howard Edelson, president of CEME and a former Consumers Energy lobbyist.

To remain operating outside of the campaign finance law governing political action committees, issue advocacy advertising can tell voters about the candidate with either negative or positive information. But the ads cannot directly advocate for the election or defeat of candidates. “We don’t get involved in any express advocacy,” said Edelson, a Democratic strategist from Ann Arbor. But CEME’s ads caught the ire of several legislators last year, particularly because the group tried to influence primary elections involving critics of Michigan’s energy law that greatly limits competition. Glenn and Barrett have been advocates of loosening DTE Energy and Consumers Energy’s control over the electricity and natural gas market for businesses and residential customers and allowing more utility companies into the marketplace. In mid-Michigan, the group spent heavily trying to defeat state Rep. Tom Barrett, R-Potterville, in both his Republican primary and general election for a state Senate seat. Barrett won the primary by 41 percentage points and prevailed in the general election by 10 percentage points. “They spent hundreds of thousands of dollars against me, and they couldn’t beat me in the primary and general,” Barrett said. “They couldn’t even scratch.” Because CEME is not subject to the state’s campaign finance laws and regulations, it doesn’t have to disclose its spending or any other sources of funds. The lack of public disclosure is why CEME and other 501(c)4 groups get referred to as operating with “dark money” because the donations can’t be easily traced to the original source — and the spending is limitless. The Michigan Campaign Finance Network, a Lansing watchdog group, was able to trace $770,000 of the group’s 2018 spending through TV and radio advertising that broadcasters have to disclose with the Federal Communications Commission. Craig Mauger, executive director of the Michigan Campaign Finance Network, said that given that there’s no public record of CEME’s spending and finances, it’s possible the PSC’s ban might not have much immediate effect on the group’s ability to spend, as it may have plenty left in the bank. “This group could have money sitting there so they won’t need additional money,” Mauger said. “This doesn’t necessarily mean the organization is done spending.” Edelson wouldn’t comment on the current status of CEME’s bank account or whether it has other donors to sustain its operations in the absence of Consumers Energy’s donations. “We don’t disclose our contributors,” he said. But Edelson said the organization isn’t going out of business. “It’s been around since 2013 with the purpose of educating legislators and the general public on energy policy and the economy,” Edelson told Crain’s. “We’ll continue to do that as issues come up in front of the Legislature as we move forward.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

Cannabis group to advocate for businesses By Anisa Jibrell a b e @c a n com

A new assoc a on a ms o represen he n eres s o censed and budd ng mar uana bus nesses across M ch gan w h an eye oward ron ng ou cens ng cha enges and deve op ng a r regu a ons surround ng he use o recrea ona and med ca mar uana The M ch gan Cannab s ndus ry Assoc a on was aunched as week o crea e a un fied vo ce and deve op equ ab e ru es or consumers and bus nesses accord ng o osh Hovey commun ca ons d rec or a he newy ormed 501(c)(3) nonprofi organ za on MC A p ans o hos con erences and sem nars prov de pro ess ona deve opmen oppor un es and he p mar uana bus nesses nav ga e oggy ru es and regu a ons n November vo ers approved Proposa 18-1 mak ng M ch gan he firs s a e n he M dwes o ega ze use o recrea ona mar uana or adu s 21 and o der The s a e s now work ng o orm a cens ng sys em or mar uana bus nesses such as growers and d spensar es bu mun c pa es can s b ock bus nesses rom opera ng n he r commun es “The mos mmed a e pr or y s address he produc shor ages ha med ca pa en s are ac ng r gh now The mos recen shu down has rea y pu med ca pa en s n a b nd n erms o access o he r med c ne” Hovey sa d re err ng o he end o an

Hear Bill Ford Jr. at Crain's Newsmakers luncheon

ho he dr v ng orce beh nd as a s success u Proposa 1 ba o dr ve Depend ng on he s ze o he bus ness and he eve n eres n suppor ng he ndus ry membersh p pr ces can range rom $100 o $4 200 per mon h Hovey sa d Perks nc ude s ngs n a MC A member d rec ory B Ford r w share h s v ewpo n comp men ary cke s o MC A on Ford Mo or Co s dec s on o buy even s exc us ve access o MC A and renova e De ro s ong-emp y con erence ca s and s ra egy ses- M ch gan Cen ra S a on a Cra ns s ons group nsurance d scoun s and Newsmaker o he more L censed mar uana compaYear uncheon n es bus nesses ha serve he mar Feb 25 uana ndus ry and hose seek ng o The even w s ar a mar uana bus ness can reg sa so sa u e he res er Hovey sa d o Cra ns op So ar he assoc a on has 30 memnewsmakers or bers and opera ng unds w come 2018 nc ud ng rom membersh p dues accord ng o DTE Energy Co Hovey s execu ve board w have Cha rman and 13 members who have ye o be an- B Ford Jr CEO Gerry Announced The nonprofi a ms o serve Newmake o the derson ConsumBLOOMBERG as a resource o po cy makers es y yea ers Energy Co M ch gan s the fi st state n the M dwest to ega ze use o ec eat ona ma uana n he Leg 1 s9 , a2 0 1ure and prov de bes ROWITZ CEO Pa Poppe o adu ts 2 and o de T N 8 A K CH // M A R S P E RAIN NESS ’S D cesCOand Cresearch Wayne Coun y U S Iprac IAL R rom o Cher late ETR ROIT B e out of her OIT ’S DET RPOR EPOR B U S companies that cam CRAIN , E IN rm S A E ViaDeve T S Sch. t assistand o hers med ca mar uana d spensar es s a es ha are ega zed Hovey sa d Execu Warren Evans O E ACH R T devices tha conE Need to know nd’s resear // M ps : H sba elo A hu H R dev and E IEVE C Horders dical E HBeat Me ent of diseases, dis 1 9rce , s for MEN H CAR“M chM 0 1im sou 2 8 a ways pu s treatm rom c os ng due o new cens ng gan oppor unT y o ALTH The uncheon ch powerwh ALT olhas h the CwitditA rt, such as rm creates skin acHE  G oup a ms to ep esent nte ests o ly an of the hea ionsR M mps. ViaDe infection of tubes E PORT: od puH E e gan s mos the a R nted blo fac uce E pla sur L red c ru es become a na ona eader n deve opsome o Sou heas M ch ous ROporE s that Dona cess device n by using a micro censed and budd ng ma uana SPECIA Seleratel ski tion to acc Molly traversing tes cell multiplica l . of a natura severa MacDon d IAN pr or y s work ng w .D “Our firs h ng a success u respons b e canald’sand prom nen no IC formationand shakers stimula movers l year t S the tha M Y te lif H , e s P nosed i promo bus nesses with br before she changed healing and Michigan w onuy l. uartered at cancer as diagbroke east , a he w nners headq biologic seaw ies area mouth he s a elu olqu ckey S address he shor - nab s tobariankgendus ry and he M ch gan one so sa e Plyu p Fo o rtunate room compan rupt in up, leaving . Her marCenter in Economic treatThe er, tion eth ova ly tog he 2000, marrie Inn , by th gan raise. with fiv r nearly To They work health issue, Sciences en sh h the Michi  mmed ate p o ty s p oduct she ca in 2002 to ToLife e child ema volunteers. he ed throug blic cens hanag Befos d re ages and ensure ha Cannab oppllsd ToCra ns Bes lence ng renAssoc a on w re she ndus ry ce as a pu ility - rp. -Managed Nonprofi s fac Pe ttit, went m Terr m his su of her began ing violen ients injured by vio their ho Co How it w ifiDe br te c, vel beopm m orks help pat nature ort to her tion sh east cancer lling the st jectory of and hi cause of ory . Tolu- to change the tra or y e fe and th n, sho tages ac ng med ca pat ents cia lt ysi s process s mproved so ha h s br ng a aspec s o he s a e s new y con es th fo st W e fru po But th unding at atinsitgivhi ergency ph n too many and e fo omen and removed the The Pi led her in 20 straervention As an em ance, pr see marke e couple ha Mak vides lives. r bene in 196so 7 em nk Fu 06 team’s int , M.D., has sh bbing d into itzfits, whichm en d itwh spite the still sees too many vented ovided food nsultin just starte Dr. Kacrntr to wom ort-term fin nd, which pr to lope Sonuyi with gunshot or sta Siedow pla itobab arente cehe for fam and im rs, m ply end a doesn n temDeptshe ure” emerg ng cannab sor ndus ry oge her noincoticmesetinbewgascoThe uncheon w be 11 aoctrtaplym Febhomel25 y us C n happen pa be, Sonuyi u ers id , he sinWh ect es cadea very lo g bu ily or pr dire onal violen treatm en who are ancial supp ointo DM young me fill rt tiond an essofana brain Membe sh p p ces ange om $ 00 to oudef lthea t a leng w. “For ent, th in activ eto ha One of the sness. brought of interp from the ER rt d why wit dfata a t hea h hea ga su ors n viv pp n bo ma th Pr su e ec wounds e canc hu arriv ly y ap x while ess re a oo former lo mpr is ce sur sustreof a babich into charged dpli- whppened seve rprising th Hospital. er cluper che ftof live ye in the we wer ing orC Detun defor y, and he s of violen n routinely dis onltre to car an a difficu porteras s a le ings th added roit o speak ed vo ce” Rob n y Cas no Ho n De ro doc nai-Grace r, tor at ym m e jugg m tteien o .pa on victim communit d insu Mo the pat lties as wanted a the itte a t, th en MacDon ral years at r frobec e ai l- firslot tw ile bs e en to expl Free y stu am Wh cam lin m . ra ne One study and recidivism, wr ns back into the U.S ag a al g $4 200 pe month IVE th e nc ss ion ighbor o single After he d met ai utilitylant in thebecaus the ope wife of anrat e are d pr cia expand DL number one ERs mothe n her s and e paymentstransp , Erin D was t doc- his ooftsoftha Ja e rs, r of m sp th hou “E f es tre lit lan treated in by emergency physi uyi looking to e “O in r. .” Thei and a halur do veryth friends s are enton, at$950 nsp co is the rtrayale oDenton, m me a po ent. Hovey widents h Schne tine tra ve d rec or a “ThstisressisT or ab Sonv ceAspres r th each 0s a sen or ing was from execu es mcke her hu nors rou helped for six$85 homicide den of kn perate my kidsder ount erard in the 198 d Hospital, where 1, reDetroit res ether want sb e isthe tow , buton House Mike Delfin own for no t ead into pu liquidated. I and, death for a nigh ed. miles mak wive o in “D co enteiresulab ga ud,” vedtohis hered tog M di at Henry Forhis residency in 201 who cause of tmare,” ay.ng that fraitz oved esle tod acDon eng Sonuyi gat individuals. ers te acDonald ha s.” inere possibw ow peoplemoM sh cing as lieve wPeop someth of those s 15-34, ed Kantr completed 44 percent Rossman ns,al he Trusco pub a- MCMcoacsmnAfreeticels)ansa dblaicwedritnerucatanaiodmn,wr en s a emen cotiomnuldannod tbabe10 Cra ns Membersh d sa d help im ith all e saide sur . In beid, pr r, Meghan, ge ps aults age “I 1970, Dr. like-mind c re esng ogeo DMC t h 25 wh ed Erin don’ “gwit m ck et w t y ith ob t gr un it. Bu th alo ported tha lence had repeat ass end- a group of grant funding from eld ed qu ound ’s lem rough e ho hain Donal t only ab (s alify itz Mar y oklyn ppDe a-m Bro t tal y.”tro ed I wou uc the fin sisfro Kay,” old James s of breast ntrow ouspi tions ganiza meless.” Th ered vio ai Ho ss Blue Shi a20 percen t 7 pegra Times d. He garner ld be an nt,t the Ka said tions rece ereve e commillio rses toarSin Blue Cro ous years and n rcen - nu were to ons suff and po cy firm , orcanc , whose m cancer treat cial n unc on approved by Cour o d scoun Found y were a ice and ation, prev ar of pe pl an al nd dev ou $3 ap a et rc Bu llm ist within five ot Fou h ug no ot nd m er, ass plica- rt her tM wit he en h. t e fu vened to help or- In 1972,en androf nged n, the Ski n. ng. c hea money volunteere r had died t. dzia, prd ar idea, ba acDonald nded tricula M or jobs, includ She took se th oni ed up dyi tistics haven’t cha en- Foundatio Kresge Foundatio such the left d e 95 t imsaid sa sh . ve ate og for The of ts Ca Co. ing on erg ram d pat, ien mnacre e sta spokesman perienc sed on herTidcke nen nsde e had s tea riting DLIVE Pink Fu to help raise e at Fo r- 446 0495 “Thas vig now an em un- tion and anager orthe ruihe - Anfoder alotsa C a ms udge S ephen Borre o n served (313) are ab ewith aroahperlynpachrosfoumatiePicra er prog wbre at ted forCoa ich ha or.allowe m n- theDenton workro ns, whava nd. ce d Sonuyi, pital witan ram an for the top rd I am su e. “If I can’t rd-knocks anLVAD,On nded rio Sonuyi rec ders as Calvin Eva to much,” sai at DMC Sinai-Gra a co veethe hos owitzesdcoleath 10 ex- failure toce get he d pposed ntgy. Fu rs In Pink in ed with Ford n r Emerntr applKa th lp motio mpany that later worki 0 munity lea and Ray Winans 20 e , nd to olo ’s So the m 12 ica cy physicia by Medical Cente com hn Pi 3, W gi aybe on to prod tio ns er ve help ar198Fund develo sa ng bre Innk rry ke A spe - T-shirt, fu for the @an LVA is DapTec yn fail on oderRegu a e Mar coSep ember ha preven ed near y 100 Tw com/newsmakereven ependent uana pla we uc lle BeL thnt. agemen Oct. 1, the pan er. .” ention g ind contract pe e e che pr ar co llerv com pin D a 20 le d Mi an in ov int pa m et Pi hel ngth ice 06, with prog the sh m roit Pe nk ge ads t from ittee ans of ed, vi of violence Services, h Wayne the proe me medical dev 10

GE FROM PA

By Ja

jgreene y Green @crain.c e om

eene By Jay Gr.com rain jgreene@c

Jo By Ja

jgreene y @c

Jody known have in th care as fi sis oped m t 15 year ult hand. s o So in Ricks an 199 people d oth sonal As co-fo nonpro sistan fit that patient -d also co irecte m to care petitiv givers. “Findi Averag Pink Fu bene ople M appr of Ja irt an deo. som Tom, sh enco She ha ng and gency serve as oiya Richarson is ned liated wit e paisio ovor. sonal yments fits, 30 to 90 oves dona Funds raise d a four-m mes group affi opi-ened ur- pay“He env as eclin It no wing of nd. ogn 2005 w d just ac as coordinat lists. LaT izewd is academic in ted to days. ce s erec said. “O sistants Si-ed The brid cap is $3,000 are $1,500 wath m re cia m’s administrative teers ranging mo rsity. hous The Pi d are 100 pe ute Bloom 2,alhe Sp she ha ith another pted a job Molly M forldthe Lo an r fie In 201 State Unive Sinai-Grace sees tim ding the rcent volun s gra d her compa acDona issues n the oth in i- in a pe ge to work,” per month d the re oking to th nk Fund. DeDyea H res m ers r of y ill m mb are also 10 dents to me ing vic m which s che ec an an ny enc al . offi ld re e bb nd M So Because tea “It ke ize erg d nu fu sta ac Th The m w in ce were fa em r cal tu s is a al mam Don hen g Associrked r,spi foun of fu profes i, M.D ing Thtal und and ate stu nuy e Pinko has d sis has that a breast re, MacDon wo gerge bipe m ndous nai-Grmace sionals no nd pa on the dona ald said. De ore Ho opSo rie.s fo ogramdischa mes averag er from gradu nity. . gunshot wo— som Tolulo is a treme sy cam a suspicio emget als Fund ha ates metim al thm. paid an He tand r the , apis sho m oth mu here atio e backs said. “W us W mm $2.5 mFou One is multiple im cancer diag d month ys out 8ab tion flow, eives such 2,00 s pan,id co r catha pro t has ou “How the com Th art, thws than any 0 gra in its ER ncer son illiond as canc mkas pacts ou wkie out th in PA MC execut omRo nately, mpetitive “fi, nanc W nan Wi ” dency sitos. A “Th do” yo d DM ,cap ided of ai-Gra per day — n ebu m m, enbin neGE four acity, on peopnoOMbe six ce bac Sinen em ing toFR Bu e er to lan tio eioday Jac , mosthe fits with t $50,000 pe ercuts. t roo u st at m Alk ou th ia w On ot the t n com ienve d Sonuyi sai llet, Sinai-Grace pre C patha ne h ee w l th tial at s. nearly two chigan, Sonuyi dec ar tre wa nee ee ini and wit a ar to e ks tly na re t a job them le. atm nutro br ks st rd xici ly in Mich it and mains 58 rc for hair bilit . At the l, M in M eaeth IVE mbe M Mi M dapes tog en’st. Fr heof ho De d Ma st er Au ed DL (afam when ily rato M D., DM canceat at-Fi innd igan we get rem ent go Mogillating mental and ty,” or the “We m hous higa esre g. s camepein ) ily hospital in . as Conra the eschi, M. dia- Cease receiv rs of women icen er ,di ingom inIf the 2005 s u weighgust uyi y can - bu the Sephysic it n. ing and financi os Slowin for careg cesyo two , ,add his treat agno ion Tony Ted rtive of his idea tlyfrie s group ril en ing tem l deal wh pro su she dis yeaAp said Hoffa to see m m. wh in re t th Son rd the al pp m e. r “O sis the to al ce s ly d ut ro us en ugh ot lag en . to take act with the grassroot 2016 dent, and or th sa see po ted sai ive rea de sid Vil ug dn An , an he abo bro s po t? t er id man the com nec m bubar r thi ’t wor h or ” Mac do, wed tre e effec induce s r ph emaiwa rary ivid t thber omen grh the t late Wer talk We in liswit e been sup Detroit Receivjob.akfast.sw : She the thaw fin ual ls s con y ent. e re’s ga one) the y canDon d by ts at W rking Wo nge inOft Wenidea “W men I ed. r, Sonuyi CEO, hav o any.kg. en ciaal knew k atis al zatio ow l. t k hir whe, going munity have gillacoffi tionce(o th Theindnotraan cancer and are bre overy. Wh l be no m enMo W ateverdidn’t take ald cha r’s Keepe hospiDLIVE int first is tim stat hace. nds,” savire fft.wilTh to they gea bac d long to vionlen IVE ey plt of DLha h velwa k hal us um s spre es th treatrec r theily and “W hisefrie the details stead, mes M Brothe IVE, the first My to expand ro ofIn m ngsta com pre s and con have ad then mo gh t thei owed er munity serve the pe advio t np ence ro levhels of ut so wnfit- said. silvill DL fam ” acDon e thr po aas ic theycep , thou ion pro- ing Hospital. If all additional staff wouThe goo mM inroabo r todo such eivesouthe rs eashigh ug mon en d o have bee talsth p them. my,rhis all 50 ld bas wer Th “O founded s ver intervent soJim ugh hav t yprog grant this ye tsdwh al Ho wadc ey. He tre abilitie care needs of bbin e spirr se to C. me hel the 65 patien rd the ancial sai hadhav eed to pa loive tre thei DM t, he said violence d. milar my nds for g, and cr r in a“Iqu metim MotnorrecfinSon in PinkDLFo ifi ” Pi .” rams th ar to do a sim Jim s and IVE rMjobs”adotepte atper ieate p ed d uyi son ed t tweoagr sp t m nd lus Of vo lov tal-based chigan. DLIVE sta th worked ou and trained som y yin cen en on su exc ” and “I Co zia al t, , ice se ey bi D per Ce d. e and be includt an?d fin r- so g happ nior cit ohn H 90 , ‘Than lgen “I an at talk ab o hav cia- lgilly sai Donal issues ctseofantha rp.’s ion M y, very loy Warspe , ab effe Pindzia Mo D ver esllsalsor be hired “Nobody Mac oy un of DLIVE, del i lo k te m Everyday. y, l t on D am citi m m. rio yo le le, se m mo ar gram in Mi d ent wil ver ci ou par on d al 30 at stre gra a s. u, sa al erv uab rs pu ion Sn le wh dic ” t ald sa ervent their idrac and issues,” said son Th ns len blic po ce int ap-on.is for the bene o no . Po a. The e Is Val more sourceTheiovio terdc of the pro d who has been com ltim any ’ meple ho the m , Ba usin M as ficiarie per e cri l bas m the ide pre- this year. “Th Detroit Lif to be part frotica hospital intid. in St. Louisho s: one- the anffa have He help licy with Th w in hiswcha g, lin to nego m th d ed e gave me s Did saicr e ts will help acn re-injure adding tals re ai,”lsMo expresHo y em mai st beabout re e, even e tmmu gill givtia itors capacity “No one cas of seeing a lot of tha providethird eansh peofrogill Mo te paym far has bee m, d Sonuyi, ing hospi m nner. Did ce days be ed the organi e A , ho n ” hebe ts ic drelatio ch ipfrom occ n’ts tellthyoukful ma weighs on D.C. uyi ists tw uld gram ” sai ents w er now g th ur, itaokza sm “Ourtosuqu come a ing ab ivinwo mulation seeing that with the N itsp ls and e m -rean W shingt m California, Son tions.therapeutan coer accum Need ou sponseness told him in our pro m jority are eith ith and Wa ganiza rpthings to on-ons to 501(c) ti ickey an m the fund le to isti munity c quon deaths, sleep tion. e do mm ? “I ment or rvey (of 587 review bills d fin . uti 3 tax ized in the that the vast ma for all oth orsat ice iginally fro dical degree fro sol ool bil Or ged adv ventable traum al sta at na sch in the com and al for . pe su s ly a in are ni re k dic m rvivor ople in ts “The m the lieve me ght. Or him.” cent m ms, key nity to for- tre or bac mated M dical Me Ho anffa the com ed his me The gem an estim (of d. After patien d DLIVE begins xiety ho at I saw mployed ubiquity of have an opportu s in em women s) shows that treatmagni IRS at the tim alle tim M chigan on inner said. “Th lie within ts receiv y of Mi said that ryab ouet pah,” w skrec enable ment; ho we fying gl ippe ing Mogill 41 pere wa with br w eve resource t ER, W rsit t Sonuyi eligible participan Winans sai of visiting them and us orn issues Bu ive yin it bb are foc d d I thought cas Un to re stu sa d as tre he g th d ve s pai Th The s ea lped em to “They d thei atmen ide on no because tially partici proces connec mething. e at Henry mu r job, e t (at on st cancer) pay fo ool and dec me threyfir do som was a dis done,” sensitive ut their options to a 48- 175 poten assessed by DLIVEsuffi m nity.” change us avoid IRS npro m dical car troit. r car e time) ffi- Sch coul but there ysaun g t be id de d sc insurg mergency DM bethe city, talking abo program. su t getting m Durin ts will could no program still lacks uate city em rr erfro . “We need dn’t aff rectorsh from a co-o rutin MC in De .” in ord it wasn’ later at deq perativ nt. Know he ser ien Learning ip toved addres it,” she t connector because pate in the examp cause the Ford and m le, pat re was ina The go ,” she said. wherele e is eiv ALLIE LIVE is tha ector, Sonuyi ed s this up al of PP stay, for five tim staff or the the patient before recpowe es. the Army, rope, dg ur nt m dir he Sonuyi. “D me ho ing cie al to dic join h be A, r.” e the m Eu D PRBefor she said provid four to ciplinary m et wit spital in in 1942 at As DLIVE a mu et them in in tim in te me to me Ho ,c m lti-dis work- be visited es we me ni g m Sta A ld in ty Fie -hom CTIT ree from Wayne p year at the -bas m es the 8th m tim room or s, social “Some coordinat so peop ed personal e and c recovery al degIONhis internshi ctors, nurse s, vioassis le with his medic ma bay, the team of do health specialist and traum completed ER disabilit tant s age 25 and morial Hospital. y. I was a Jewies and m ntal cialists with other spe ng ers, me rki ion Me wo Arm to b is ervent o the W thout old Blain s Wi nter, Tau Kid lence int but to go to get int By Ja on the and Ce “I fought no choice gill said. . Leu H y ketive mia (ALL) Re- researchers fish Initiajgr can. I had ,” Mo eene@ Gre ene SEARC tic leukem (AM bra cer in L). ish-Ameri f a good American any in om mphoblas mon cancrain.c mia M lym Cancer Ze mm kem and Germ sel OGY RE for m st com Fo prove my m eloid leu eloped new test- mi rs in France came to realize mng ournti a is the mo ore than ONCOL yea acc acute my m his ns, dev g t ally zz e tee tha y —cer the hav Durin gradu and Congrs at ths. protocols ee can searchers atm e CEsO 20 years, Na 4 and 1945, Mogill were subject to at m children m out of thrtiona ulations jah Ba tre ment patients with metime by Kid of Za 194 l, an ded dical tea ts, som the Jews most one ing and alm Inup ating to Jam ld. I kster-b man the is beingthfun Intern atrocities rmans. When his me centration at he with patien y are afochi gro m de tre ive and safe. r be lpst wo aes Fahn nprofi The work tionships Ge ing. nam have ma no n anased nohan men when the old visited con emen ncer, a th dsfitof the e bee er, MD ed one selv m re effect Down have a Wi hav ing them who was 6 years wn mo d child npro thout Ca loaded any and the ugly truth of the es see Do ldr W rm of h chi , ou Ge d, ne sp t wit sd th t of Sp per ee ren pu air — ren’s Ho ien ev erell e 2018 s whose mecrrie ma himself trum H the nuns a dona erything in “Children position (10-20 By Jay Gr has be d poverty anent have a pat Health an R.N., of parent at Child rain.com he saw for to the camps with te to me en he mitte Care He d predis mes in to ealth Helen p leukegl cam jgreene@c w inspira- Now he is age 20, o still com for cancerstrug mm deps, it to th d refrigerato a truck, foun s incom g to lp went . They told M.D., dre roes. greater her risk) to develo stood treated e group is pr Taub, DeVos aginha ra b, M d wh bout locaust. “I e of the survivors g off. chiseatkids ing famHo g pares ear ilies Childre under Jeffrey Tau own childhood t hig s a baby an his mo whelm e family. “Thr and deliver al. Th m " saidoud toathave m, dy re ha , cen pit ilin the som m bo ta nt d tra d No ke wo s rs ate ben’ al ce fun L. ed his someo to s Hospi or sim rkforcey me careand M m dic cology m with onth that docto of tre said Mogill, his voi returned to Detroit “We sta with grat ey were ov ed 6,000 to a and AM ne like of to rsit to fin tion from when he decided see me pl ta m mi ing $35 ive ef y l add Un chi jo itu e ent s,” d, e er d n Ba rted it you who gill m in th health stoerie y,” he sai yne State nu ck in 1996 hope out that de,” she sa . r, Maj. Mo idency. But despit rect treatm the Wa with cancer iatric oncologist. the divisio ce 2011. an wh Su W wa cor is d ch the de sor w the to ogy er id. rse spec rs ho, pe ell-bei dicated Bazzy, Aft W nd take gery res ing sol ildren’s sin Mric oncol gme a ped nadian from Wi now Za was the begi way.” ng of ki ualize it to com cheializin are need to school. te his sur t the jobs of return m- Ch eople) say pediat ich, ig an and lym nn es,ear man In ds from dsures g in tra a registered and individ . des to comple wa tec away his ful challen Taub, a Ca d for Hodgkin “(P ternatio ing of what Taub sai womm “We gi approach wotici across n spes - yond. mo rkin -nscultural federal rules to pro in Memorial gave mbe om sing, stress inga spe tal in treate is tor in be effective if comod Hos at th isWe ca ve people th nal. piitch who was Children’s Hospi resi- is so depres see what we can acc proder Bla patient to principal investiga Chil- find out D sw ta e a xan s l ol ll an lea Ale ei flip d a his we Oakslot. ma at edical as a gen k diers, zzy, wh it ‘one-stop r dignity ba n, no miadinMchi gers that rbor Taub was o also is kem ough the phom mpleting spent ing. But leu up com ar Center in surgery residency gave him privileges e pracck. Beau o Thsin study thr that enrolled trig gene, cau cle d Taub, wh and endowed ereg wa shw hav em travelin is CEO, chie hope,’” said ond c m lti-site 1977, ended ildren’s and has hos- plish,” sai s up a mu spital o privat rafis an alrese BaThe cifi Becau ant Dearborn. earch adzeb pediatric Ch Grace Ho er, so he went int cology Gro 7 to 2011. “Th y lo colIra mqinfam um and m g minister fo f fundraiser create the eer at the dency at fessor of cancer res dren’s On ily dren. tw and edic r pr spinastl on d wh ins in e of be practition , who later helped e. 30-year car t of Detroit pediatric iversity School en from 200 high,” he said. ose thbre thethe eir tw o had eral ns wh yspcan ctic his entire From al education. eventive care chair in gill 204 childr w par y ski Un pra ho Ad Mo no te ver n, et ily d is the re Sta m o m see r sai 19 Ten and fam At we ich beinistra miaita baby 96 to 20 l’s es on tice, nt of W yne m st com mo od canrm worth it. You it office nea fam pital, wh nter and owned by with Wa cure rates atm rs andgen ne departme 04, Ba atal n leutokem or ment, the ced by pa- blo thetehu . “It is all m d his Detro ation be- rent ily worked in// zzy an ed hospital’s beat. doe1ct9col hit CgRtre A I N ’ sSexp Deri E en T R O I T B U Swit IN S Sma M RC , 2 0 1IC 8U. M dicine and be up14 -wH th A off h Ebe M dical Ce Corp. in Dallas. Me gill opene out Durin t loc ed ou d he n- of Me condia.tw ors had de saveyd turne se urred re effect In 1946, Mo tel, in a storefron ets. ool in Ca d. The furnitu t trucks, pi of their ho r our clinic.” ic we try an in ul kem Healthca m n side infections that occ nts studieve mo Ho pdleuwa e stre me, cked re, ho ntyila m dical sch rn Ontario) clin a lot of laughing at laughing is me see d not nt dev cou re ed aclot didco torelo the Seville oro and Charlott we to “I went to y of We s,ed an the hear die hing an using item up donated W ste tients we white blood cell he receiv whenfathe d stu w erb for ce, d m fe e ry ith ver Pet an . offi used ily du rsit ina son ne en dr ng I d ice ir s, food ingWe lim object d deliv aw twe One rea suare ia. “In pre ada (Unive residency here. ldren die opened the e him some adv families ertain you it or when the pporeredkem chi er he ent an leu . he e Ba no ed To p t t. for el,” zz w ks. elo Bu gav m you Be vis . it to ne d ith inCO-WINNER, devy becam w and my int The fish to this lev and did my m gic tric ma ions. were low er their The caller mocratic you are. If $12,000 in theca co get l. cat no aft ed t e te lls n’t m pli cal d uld de ts th m e . pu tha do e sai wo tici I ien In m com on eirtici ,” be. etro D less th y m s dedes er pat how De one pesa subseq whites youOrigin metime thought I facto adat to cardiac pioneering study Najah ph etro m ant to an ge, I know e to black and else- old ment, Taub som scarves” or a s just me ing,test otheruepes b, M.D. rafish ingheisarwe Ba eor nt m r wh vo “G ra, wh ally founde it. zz rey Tau y ans edwe Another g e wa said. “It wa rets I didn’t go CO-WINNER, ADMINISTRATION AND VASCULAR RESEARCH treatm h uses zeb en- est ical etcan way fo sh ic r practic d abto ver-endinheHEART ).” reg three Jeff m r e arebatrysing le we hics research Taub is involved wit d environm open you and lig h is Arabic fo as Bayt Al Za le to pe sho ndws have any residency training be- out the “ne where he nego I ho Tau ventb.ila“Wthekem variety of an ... ev by a c ht “I g r hes ia. os eti tia m , ldho to siz Ba lym wa ctin b k gen ter ch chi te us go hom zzy ch s shoc mia, Zaman r and a su condu gerstoleu rehe where (af cer sur vivor, Tau der- string tric ings of all different onild to identify that ma y lead to wh anged e of hope trigen nsis cer, leukem ke e m ch e .o in fe can w d. r.” rg d po ed ith we un 20 sh o str can oo th I had verty in ing tu 04 non-go a Ba went to arate nam m int m . ma As a factors childh children ByitJaye Greene shfind theeans no be th vernm when ties sep mbine the ther, on ma and retinoblasto gest single tal can help mia. becam e to sciences te e was shocke the home s. But co zzy, who grew e commun t seen 501(c) leukem and anxie o- only to com n back into a “fa lar lieves he phom for a vi 3 tax-ex ental orjgreene@crain.com ity,” sa d at wh red. me ar egrative Bio l- hood up led the challenges nizatio e an and the empt or gaChris cer diagn W U’s Int “We m s for chi Taub has At WS n and CEO of stand the tcome be stuck at 50 percent. We started at she enco sit daught ea of East in the lower id By.” Jay Greene - string and baby string with a can “The ho ilnizatio Allen, uner of a insurvival ou mand couldn’t ke ga m , acute m y have them and partici ment at Ch me wa atm they ma m ther mo vetera study on Down Syndrome treating patientson inlyaca systematic way, isn.one of few heal U.S. Ar Dearborn, trejgreene@crain.com epHealth, and ne the viats of s up tre t sur n. th ba rp m al h said. w eded ecutives witbeen sav“It is par d. on theand re. There sis as he hospital’s annu we didn “We didn’t y Korean W e 13 of dren has monitored the use m the et device” Southeast Mic William O’Neill, M.D., to expa ithinde fam floor wa ha ar patients, ’t ,” he sai nd,” sh to In 2016 pates in them. began quicklybrou improving mgh ily msurvival has worked ing ing lives since the 1980s. But after deembers , where all th s was diffe know it at ve much bu r dren’s Taub isn’t see e improve h ou , m Za on t gra 40,500 rent.” the tim e t man m for underserved slept W en Wh people vors pro basket the baby to rates. populatio cades treating patients for m major heart sq e. This 60 to 70 for a cr me in . They m Bazzy went m relaTrowbr uare-foot bu oved to a ne We have elop long-term “W a laun ib,”Detroit After O’Neill presented the ainhospital administrator a attacks, he grew tired of survival rates other home idge St w ild sa dev id dr to g m Ba W y fu . The anity m We 2609 team. initiative at the annual American Col- zzy. last at two decades working m stuck at 50 percent. So he did somerniture gather up and told he 1 all of times Center bu Hope For , pots r spare H ild health issues. m lege of Cardiology Scientific Sessions By Jay Greene thing about it. to brin and pans th the extra cations ore space as ing has ei ug to th ey coul in March 2017, Henry Ford was bom- jgreene@crain.com 13t years at Author m and his Using a tiny heart pump . its prevIn hisgh e fam d ioushas Supp ily. Th lo-spearheaded a barded with inquiries about how to Allen m powers of persuasion, O’Neill got comJames Fahner, M.D., was the first ey 240 co orted by do no use the method. that have add peting cardiologists at five of the largest pediatric hematologist-oncologist tions mmunity pa rs, mprojects ore th and 1, anhealth problem Now the program has been ex ex- to be recruited at the new Helen m in Southeast Michigan M health systems ner-city 500 vo rtner or ganiza luntee from panded to the National Cardiogenic DeVos Children’s Hospital in Grand meth m to develop and test a life-saving methprenatal rs, Za improving man the primary care Shock Initiative. More than 40 hospi- Rapids 28 years ago. As division hancing odology. It is now known as “the Detals have signed up, he said. pipeline and expanding chief, he created what is now an troit protocol.” be- 80-member pediatric hematology/ By this summer, O’Neill said he be health services. In July 2016, O’Neill and more than a lieves more than 200 patients will be oncology department, which inBut his latest passion is dozen fellow cardiologists formed the treated in a clinical study at hospitals cludes 15 specialty physicians. how to become a “popula Detroit Cardiogenic Shock Initiative to in2Chicago, executive,” said Allen, a U test the model protocol that is begin“Our program has grown and James Fahner, M.D. 0 1 8 Los Angeles, Atlanta, New H 1 9 , York, Massachusetts, Florida and grown. We assembled a multidisciMichigan graduate of h ning to be used across the nation. PAGE 8 MARC OM // FR S ES Washington state. studies and administrato The initial results? Survival rates sky skyplinary team, and it required me to volved in Make-A-Wish Michigan BUSIN her late T R O I T William O’Neill, M.D. O’Neill also wants to expand the take a leadership role with adminis- the past 20 years, first tha Osteopathic Hospital, Hu rocketed to 76 percent from serving a of S D50Epercent t cameasout R A I N ’treated over a panies comand initiative to smaller hospitals in Mich- trative oversight,” said Fahner. “It is boardDemember for the 41Cpatients later chairman. assisttal and Detroit Medical C Via rm, earch.the national ices that 10-month period. These patients had tured by Abiomed, a Danvers, Mass.- igan. “Sixty percent of the shock not something doctors are trained Hehurecently 1976 to 1995. orjoined ps devor sband’s res con elo dev and al chairmandis dicfirst Meits heart attacks so strong that their heart based company, which funded a comes into small hospitals,” he said. for.” ganization oford a ers for im- “There are many defi es, eat as eas HB dis s of 16 rce O’Neill received his medical degree muscles went into a state of shock, national review of 15,000 heart papopulation health. The Still, Fahner, 60, a University of national physician treatmentadvisory power sou s skin ach asboard. with the rt, suc heafive in 1977 at Wayne State University Michigan medical school graduate vastly diminishing their chances of tients treated using the heart pump. first coined in 1979,” he sa Over past years, nearly rm create s of the De es Via tub ditionthe s. of od pump infection survival because they lacked sufficient “I talked with my friends at all the School of Medicine and has been a in 1983, took charge of the fledgling 550 pla more academic then. Now treateligible children whouce were e thetreat nted blo red ous surfacmore on what we know is ices that were blood flow. health systems. We are all like-mind- physician leader at Beaumont Hospital DeVos department because there ed atces DeVos referred e a micropor accelerat s devChildren’s ng usi n by tion to Cardiologists at Henry Ford Health ed doctors, all competitive for elective in Royal Oak and at the University of was great interest in Grand Rapids to Make-A-Wish in lour city.” Michigan. Last lica ersing ski cel ltip ura trav mu nat l a N IA ulates System, Detroit Medical Center, St. procedures, but not for (cardiogenic) Michigan Hospitals in Ann Arbor. He from doctors and community lead- year,tha And Allen clearly is pe mation of thet hospital had a te record num numIC for stim S the Y mo148 children PH John Providence Health System, Beau- shock,” said O’Neill, 66, who is also was dean of research at the University ers to develop a world-class chil- ber of what’s happening in Detr with ling and pro heareferrals Michigan seal.hospital hea “Detroit only has two s mont Health and St. Joseph Mercy medical director of the Henry Ford of Miami Health System before coming dren’s hospital for western Michi- treated re-tered at at icthe being re dquar biolog mouth, a ies arewish grant nter in Ply nom to Henry Ford in 2012. atMedicare (Hospital Comp Center for Structural Heart Disease. Health System dropped their competigrantgan. The last six years, DeVos ferred and compantheir ic Thehaving er, tre ovation Ce Eco togethto workagreed O’Neill also performed the first tran- Children’s has been recognized as a ed. Life Sciences Inn ough the Michigan “(Those patients) go directly to hostive natures use ae,new ty) ranking (for medic They and issu rs. lth tee hea un thr c vol protocol using ce anbli Impella heart pital” when they have a massive heart scatheter aortic valve replacement top hospital by U.S. News and World hospitals). Why?” he ask Eachfacday 50 nag to ed 60 children are lenpump ce as a pu ility ma vio len by vio rp. d Co chemotheraing on patients injure signsofofthe ir cardioattack, O’Neill said. “Everybody knew (TAVR) through a catheter in the U.S. in Report. is a study on Michigan’s h treatedDe atvel DeVos with chemothera opment eene ientsshowing Gr pat y y p Ja tor hel jec By traImpella u- to genic nge rain.com theThe is manufac- if we didn’t do something we would 2005. 83 counties. Wayne is at t Fahner also has been heavily in- py and infusion services for a varivari jgreene@c cha shock. ysician, Tol history atthe list. Fifty-six perc ety of conditions ergency ph n too many and d the Making in the outpatient 7 removeof ervention As an em see lives. team’s int ny residents in the city live unit. Another 18 to 24 children re-196 re , M.D., has o in bbing Despite the still sees too ma ce ntrowitz nted it int lope Sonuyi with gunshot or sta SiDr. Ka and impla ceive inpatient each dday. served en care uyi len yThe C n Wh Son vio bab me he be- areas compared w , DM , al ng pts o ect on dea int you tem ers numbershea arert growing year, hel heart def n cent of of a brain-each rt the hospital beds.” brought of interp from the ER fata a hea h ds ors wit un viv y ma wo hu bab said. also believes hospi he is lence sur tinely discharged d Hospital. chest of a perform a t only He vio live to and ace the of y, tor s -Gr nit nai t doc we do forthe patien a morea effective job in re firswork on victim commu itten rou “I am proud of the came the . While became One study and recidivism, wr ns back into the IVE. t in the U.S rs, the these children. the operation tsadmissions within 30 da cia expand DL number one ERs transplanTheyhalreceive that are f hou treated in by emergency physi uyi looking to a nsplan charge. e is the nts best care possible,” “(Hospitals) disch Son 0s routine tra for six andhe said. As homicid for Detroit reside er in the 198 d Hospital, where 1, reard the tone tow In 2012,miFahner faced a cancer of irethem eth lab back to neig death For les tog 201 of nry in ed se He her ncy at his ent ay. made him todthat his reside of those who cau s 15-34, Sonuyi gat individuals. scare of hispos own, where they have problem sibleone ers itz moved ted ine ow ple ntr eng t ed Ka com ns, 0, Dr.to be awitpaaults age like-mind DMC pa 25 surgeo on you,” he said. rethink whatInit 197 means t 44 percen along h in Detroit. ported tha lence had repeat ass end- a group of grant funding from eld t Toow better tient. He was a brain itz assess the ba ed m Brooklynwith spital frodiagnosed ntr ss Blue Shi asuffered vio rs and 20 percen He garner s to Sinai Ho llion grant, the Ka Blue Cro nda yea or of Detroit, All of residents tumor. and nurse ndation, llman Fou ist device, within five h a $3 mi nged Fou 1972, wit rt doctors in train sure With support his wife, Gail, tricular ass made n, the Ski n. ng. In from ven left ed up dyi tistics haven’t cha en- Foundatio Kresge Foundatio such chronic hea the atedtypical crethe erg ients with ma emo he went through emothority Health’s six prima mall imthe t pat em IVE tea d nen an and DL we “The sta n w for tio no a per idency programs ted which allo ce und Sonuyi, tions a person diagnosed conduc the pital with LVAD,newly ed uyi recrui s as Calvin Evans, hos nd Son fou the much,” sai at DMC Sinai-Gra leavethrough. der to n owitzes co- veys with possiblefail cancer on the “health to ure to goes r Emerntr gy. Ka munity lea and Ray Winans olo the cy physicia by Medical Cente com hn 3, In 198 - treat. ndent ct After surgery remove they LVAD Tec patients they Berry ion spe plant. to pan g the fail der contra vices, an indepe yne Michelle intervent helpin“When ice com devfound proWa growth, the tumor was to be they see pati violence e means of medical som gency Ser up affiliated with serve as oiya Richarson is the or. ned i igro dents ask four or five “He envisio coordinat lists. LaT ized as clinbenign. academic inistrative ging Si “I did have a pretty remarkable Siwas recogn more cia rsity. about what impacts thei In 2012, he the year for the iState Unive Sinai-Grace sees tims gram’s adm o 10 volunteers ran ers i mb als bump a few years ago,” do they have transporta r of ency resspeed bbing vic Because There are ate students to me cal teache tal emerg worke i, M.D d und and sta raging Fahner said. “I am so very blessed lems, lack of access to go mendous nai-Grace Hospi gradu rge. pe Sonuy tre has m ulo cha a o gunshot wo— sometimes ave fro Tol is dis als re y. h er outatio byn, comparison to so many others good housing,” Allen sai gram. He “We get shows the nd has communit C executives suc n any oth d. pro is t Fou sai the tha cy “Th tha s in its ER of — son 8 den GE bin si sid DM ” Winan ided , k to lan I usually FR ai-Grace per day OM PA don’t make much developing population he ebuthat e day capacity,” with the Jackie Ro Alk Sonuyi sai llet, Sinai-Grace pre C patient room, er and come bac m need at Sin tial the nearly two chigan, Sonuyi dec ini rcuts. On the and Mi DLIVE’s comment about it at this point.” that allows us to m in for hai boards pes to get the re Detroit ily togeth e ho nrad Ma M.D., DM ed -Fi we fam , Co cam hi, he igh ase s hospital in . as eat the Mogill. At we esc Ce ing can friend scareHoffa to seeligent it Fahner said hiscancer ion Tony Ted rtive of his idea Se- on wher s group decisions andthe l whenBut m. If they about the process said Sonuyi, add s year when two Village. t the dea l ugh to take act with the grassroot 2016 dent, and see po ted to the rea bro sup the r thi v vuals his perspective was connecour next wellness center.” ividchanged the barberof ’scancer uyi in ast. We talk ver they can do, we change that late have been into Detroit Recei deal with ce ind e Working O, akf Son offi “W en r, CE bre ed. Oft gill are l be hir not Whate r’s Keepe s,” hospiumahow he approaches DLIVE lway. violence. ndAuthority patients. Allen said He traand time, Mo re staff wil cept of DLIVE is his frie the details My Brothe IVE, the first to expand a back hal of recovery. comes to previous d con been mo DL family and e throutoghunder ion pro- ing Hospital. If all additional staff Fahner said hevill began underoffering ay goo two-year certi in about have high levels of eives the down p them.” The basic who have eed founded intervent Jimmy, his was a ver C. Hospitals ated dreadn rec ilar t, he said etime hel the 65 patients violence d. more clearly “just my. Hepopulation nds for “I trehow health. “Whe dread t have agr lusive to DM e adopted a sim - and DLIVE the that,” Sonuyi saistand Of tal-based chigan. DLIVE sta worked ou and trained som “I loved Jim very loyal person.” “I l l, 90 percen hav y so exc ay. ? our practice y, comes into fulcia high-dose steroids teraresai tod.thever ter , includ Mogill effects of ervention spe ver ues del y, l be hired t of DLIVE program. “Nobod n 30 cities also iss am mo gram in Mi Is Valuable Everyd wil par al stre a ore ce int the out of body bee e ervention son and one of the any medic code triggers questions rifying, experience per racter the idea. The- this year. “The violen critical basis for d who has ing hospital int in St. Louis, Baltim Detroit Lif to be part ffa have gill said in his cha give e gave me Hoon pre st be n re-injure add e the said. “These are social de has when it is your Did name that Mo spitals capacity “No one cas of seeing a lot of far has bee m,” said Sonuyi, ists provid relationship that mu tell you,” manner. Did Mogill okw ing ho shington D.C. h the tweighs tion gra ur,” he Sonuyi ic of health, and tu showing a massive brain spo tusm we are fi wouldn’t either no accumula ths, seeing that wit nity Need ou in our pro and Wa therapeut other things to occMRIs to California, -re nse “I told him to quit jority are mu dea on all ally from al degree from ? what barriers our patien mor. It was humbling and istic quick al uti ized in the that the vast ma in school. for ice igin sol bil Or ged adv ventable trauma in the com sta and for s dic ts are the medic s, key back ated dical nity to comffa me health.” life-changing, and IHo hope enhanced him.” goodd. “The gem ployed or After patien d DLIVE begins eived his t an estim hin the gan Me ubiquity of have an opportu s in alle time I saw and em t Sonuyi said tha participants rec rsity of Michi us on inner said. orn issues lie wit s sai we rce ing every d cash,” Mogill rec One of the problems the quality of my communication iting them Bu ive bb are resou nect ER, Winan foc I thought ible be- Un ey pai paticicess of vis nry stu y.” ing. There decided to tially elig “Thyoung health care delivery syst with my very courageous do someth t there was a discon ne,” sensitive pro their options to par 48- 175 poten assessed by DLIVE - School and y medical care at He munit der fire for patients bu troit. tients.” ery uncompetition ergenc not be ting do lacks suffi De ing about gram. During a rg ld l em get in the city, stil talk su cou t C city m sn’ ng will pro .” progra it wa dequate Ford and later at DM vedofincoordi Learni results he in ser lack Two years ago, Fahner was apt connector uyi pate in the example, patients because cause the re was ina wherehealth systems LIVE is tha Son pointed the inaugural chair of the stay, for five times. staff or the the patient before received and the Army,tween ur nt Sonuyi. “D medical director, ho ing cie e, join h rop he ary the wit r to Before or-Hospital in Eu 1942 at unm national Make-A-Wish America providers inaddress As DLIVE a multi-disciplin rk- be visited fou we meet them in in time to meet Stateto Field es the 8th r at metimes from Wayne room or ganization’s 20-member medical Allen wants tothe change social wo ry s, yea “So ree p coordinat rse ove deg shi nu rec al intern ctors, , the s, vio his medic advisory council. pleted his the Detroit Regional Hea team of do health specialist and trauma bay tal. l 25 and com s other l Hospiorative. humbled andage honored to Representatives s a Jewng wit“Ih am ers, menta ention specialist Memoria o the Army. I wa go to ut some of the b is worki work Blainchilerv oldbest with ous public to private h tand get int nter, Tau Kids Witho lence int bu Ce to the ice ght cho keand “I fou and I had nonizations rs on d. . Leu H dren’s hospitals in the country to ia (ALL) gill saiagreed tiative . researche Mohave ARC 841-2200 leukem 950 University Drive / Suite 300 / Rochester / Michigan / 48307 can,”community Re- www.miller.law SEWest in -American brafish Ini some lastic (248) cancer of in the absoluteish experts inf a good Ameri joint rmanyhealth ia (AML). lymphob Cancer Ze sel common OGY RE nce and Ge lizeof t ng for Fahner said. eloid leukem ped new testprove my in Fra the most s, acctheir sessments. The rea goal ountifields,” ONCOL acute my lly came to en develo g his years t mia is

MOGILL

IT’S TIME TO RECOGNIZE MICHIGAN’S LEADING HEALTH PROFESSIONALS

Najah Ba

zzy

.D. Taub, M y e r ff e J

Hea th care touches near y every facet of our ves and the mportant work of profess ona s n the ndustry can often go unnot ced He p us change that – nom nate someone you know for Hea th Care Heroes W nners and runners-up w be chosen n s x categor es: Corporate Ach evement n Hea th Care • Adm n strator or Execut ve • Phys c an • A ed Hea th • Board Member • nnovat on n Onco ogy Heart or other Hea th Care Serv ces or Research

SPECIAL REPORT: HEALTH CARE HEROES

trum Heal

William O’Neill, M.D.

Chris A

James Fahner, M.D.

WITZ KANTRO

SPECIA

L REPO

ALTH RT: HE

E CARE H

RO ES

.D.

onuyi, M

eS Tolulop

MOGILL

DEADLINE TO NOMINATE: TUESDAY, MARCH 5. Visit crainsdetroit.com/nominate for additional information.

Leaders in Complex Business Lawsuits and Class Action Litigation

.D.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

Comerica Park in Detroit.

Fox Sports rolls out new Tigers broadcaster lineup By Bill Shea bshea@crain.com

Fox Sports Detroit executives said they had more than a hundred candidates from around the country vying to be the next play-by-play announcer for Detroit Tigers games on local TV, but in the end they chose the inside favorite. News leaked Monday night that longtime FSD broadcaster Matt Shepard would be tabbed to replace Mario Impemba in the key broadcast booth role, and the network confirmed the hire in a statement and conference call Tuesday morning. Additionally, the Southfield-based regional sports network confirmed that former Tigers Kirk Gibson and Jack Morris, both of whom have worked Tigers games on FSD, will replace Rod Allen in the booth as game analysts alongside Shepard. Impemba and Allen were pulled from the air last season in the wake of a physical confrontation between the men after a Sept. 4 Matt Shepard: To game in Chicago, which set the replace Mario stage for a reImpemba. vamped on-air talent lineup. The network on Tuesday confirmed that former Tiger Craig Monroe has been retained as the analyst on the pre- and post-game shows, but will be joined by new hire Dan Petry, another former Tigers player who the network said it expects to lend his experiences as a pitcher to the broadcast team’s commentary repertoire. Shepard is the critical hire as he functionally is the maestro who conducts live game broadcasts for all the on-air talent, and talks to fans for three hours — or more — every game. Terms of his contract were not disclosed. Shepard, a 53-year-old Farmington Hills native, has worked for the network since 1999 and has filled in for Impemba in the past. Being local played a role in his hire, FSD said. “Matt’s roots here in Michigan had a large influence on our decision,” said Fox Sports Detroit Senior Vice President and General Manager Greg Hammaren. “The fact that he not only knows the fan base, but is the fan base, represented a lot of what we were looking for in a play-by-play man.” The Tigers signed off on the broadcast hires, which is common practice

Need to know

JJMatt Shepard formally named new

Tigers TV play-by-play announcer

JJEx-Tigers Kirk Gibson, Jack Morris will be in-game analysts JJRevamped on-air talent stems from Mario Impemba-Rod Allen confrontation last season

in the sports broadcasting industry. The network pays the team $50 million annually for its broadcast rights under a 10-year deal expected to conclude with the 2021 season. Hammaren said the process to find a new booth team began after the season and relied on corporate parent Fox Sports’ database of broadcast talent along with the candidates who submitted digital resumes of their work. FSD executives didn’t disclose any names but said they conducted interviews of prospective broadcasters in Detroit and elsewhere. “Matt has earned this opportunity,” said Hammaren, who ultimately hired Shepard with the Tigers’ signoff. “We took some time to figure out what we wanted, and had a number of conversations with the Tigers about their needs.” Shepard has also done high school, college, Pistons, Lions and other sports work for the network and local radio in his career, which has included awards such as Michigan Sportscaster of the Year Award and Detroit Sports Media Ty Tyson Award for Excellence in Sports Broadcasting. As he takes on his new full-time role, he continues to deal with his wife and son being injured in a Jan. 4 car crash in Auburn Hills. The network typically broadcasts about 150 or more of the team’s 162 games every season. The network plans to publicize its broadcast assignments for the on-air talent within a week or two, and promised there would be some surprises. It’s not yet clear if Shepard will work with Gibson and Morris as a three-man booth, or if there will be a rotation that could pair them and other talent. The new lineup’s on-air debut comes March 14 for a spring training game in Florida against the Boston Red Sox. Three of the FSD broadcasters won a World Series with the 1984 Tigers and will bring their story-telling and analytical skills to accompany Shepard’s play-by-play work. Morris, 63, pitched for the Tigers from 1977-90 and was enshrined in baseball’s hall of fame last year. His post-playing career includes radio and TV work for the Tigers, Blue Jays

and Twins. “For me to return to Detroit, it’s special. I understand the significance of this, and I look for to the challenge,” he said. “I understand Detroit. I still cherish the relationships that I had and understand the fan base of Michigan, and hope to add my part to what they’re expecting out of our broadcast.” Gibson, 61, was an outfielder for the Tigers 1979-87 and again 199395. His other major league stints included time with the Dodgers, Royals and Pirates. He was Detroit’s bench coach 2003-05 and managed the Diamondbacks 2007-10. Fox Sports Detroit hired Gibson as an analyst from 1998–2002, before Impemba and Allen became booth partners in 2003. “(Shepard is) as crazy as I am about what we do,” Gibson said, calling the new play-by-play man a “relentless preparer.” “He loves the game, he has passion, and he cares about the people and the fans,” Gibson said. “We want to give people a reason to watch, what can we point out that they would find interesting.” Petry, 60, pitched for the Tigers from 1979–87 and again from 199091. Other major league stops included the Angels, Braves and Red Sox. He’s done Tigers radio work in the past. Monroe, 41, is entering his eighth season as FSD’s studio analyst. He played for the Tigers from 2002-07 in the outfield, and also for the Rangers, Cubs, Twins and Pirates. Shepard said getting his new gig has been “really emotional” and added that he’s shed some tears when telling those close to him about his new role. He provided a little insight into what he’ll bring to game broadcasts in 2019. “You’re going to have a lot of laughs, you’re going to learn a lot. There’s going to be a lot of storytelling,” he said. “This is the greatest honor of my broadcast career.” Laughs may be needed to keep fans watching because the Tigers remain mired in a rebuilding process that has seen them shed most of their elite talent over the past two seasons, both of which ended with 98 losses. Not much is expected from the team in 2019 as it continues to develop prospects and build out an advanced analytics and scouting operation to aid the rebuild. Chris Granger, group president of sports and entertainment at Ilitch Holdings Inc. that oversees the Tigers on behalf of team owner Chris Ilitch, issued a statement through FSD

about the hires. “All of us with the Tigers are greatly anticipating the upcoming 2019 season, and Fox Sports Detroit’s announcement regarding the new Tigers broadcasters is a sure sign that baseball is on the horizon,” he said. “It’s truly a standout roster our partners at Fox Sports Detroit have assembled with Matt Shepard, Hall of Famer Jack Morris, Gibby, Dan Petry and Craig Monroe. Their wealth of experience and perspective on Tigers baseball will resonate with our diverse and knowledgeable fan base. These gentlemen are undoubtedly the best for the job, and we’re all excited for what’s to come in 2019 and beyond.” Hammaren said the network worked with Ilitch and Granger along with Tigers General Manager and Executive Vice President of Baseball Operations Al Avila and Executive Vice President of Business Operations Duane McLean in the broadcast team hiring process. Tigers games dominate local TV ratings and have been among the best across baseball for years. They’ve seen some decline as the team has struggled the past few seasons, but the network said it has steady growth with its streaming audience. The newly revamped FSD broadcast booth stems from an unprecedented situation last season: Impemba had called games since 2002 until being pulled off the air along with longtime color commentary partner Allen after they got into a physical scrap on Sept 4. Both men and the network have parted ways, but no details have been disclosed. They tweeted farewell statements in December. Shepard was the primary play-byplay announcer after that incident, meaning he had a live audition for the gig over the final month of the season. Hammaren briefly addressed the Allen-Impemba situation during Tuesday’s call: “It was a quick lesson in crisis management. Now that we’re on the other side of it, I’m really happy to be in the place we find ourselves.” Also looming over the Fox Sports Detroit situation is the network’s future ownership. Shepard and his fellow broadcasters soon will be working for someone else because FSD remains for sale alongside its 21 sister regional sports network stations as part of a federally mandated order for The Walt Disney Co. to shed them as part of its $71.3 billion acquisition of 21st Century Fox’s entertainment assets.

Fox Corp. has been mentioned among the potential buyers for its former RSNs. But instead of bringing the local sports channels back into the Fox fold, the company on Friday filed a Securities and Exchange Commission 8-K form that disclosed that it isn’t interested in re-acquiring the RSNs. It’s unknown who may buy the networks. Among entities reportedly interested are Sinclair Broadcast Group, private equity firms such Apollo Global Management and Blackstone Group, and even rap star Ice Cube. A sale must be completed within 90 days of the Disney-Fox deal’s close, which is expected in the first quarter. A second round of RSN bids is due this month. The Ilitch family that owns both the Tigers and Red Wings, which account for a vast swath of FSD’s content, have said they’re exploring the launch of their own regional sports network and have gone as far as to register domain names for potential network names. It’s unclear if the Ilitches have discussed a deal with Disney. A message was left with an Ilitch corporate spokesman. Disney reportedly wants $20 billion for the RSNs. They could be sold as a whole, in clusters, or singularly. The Justice Department said Disney, which already owns ESPN, also owning the Fox RSNs would unfairly lead to higher consumer prices for cable sports. Hence, Disney agreed to part with the lucrative regional sports networks of live baseball, basketball and hockey games to meet antitrust regulations. The Disney-Fox sale is expected to be complete in the first quarter, and the RSN sale must be complete within 90 days of that. Fox Sports Detroit has aired Tigers games since 1998, when it won the broadcast rights from the now-defunct Pro-Am Sports System, owned at the time by the Washington Post Co.’s Post-Newsweek Stations Inc. FSD has about 3.6 million subscribers in Michigan. Fewer than 2,000 Michigan households don’t have access to the network, the network has said. Data from Kagan, a media research group within S&P Global Market Intelligence based in New York City, predicted before the 2018 baseball season that FSD would generate $240 million in overall revenue against $190 million in operating expenses, with the majority from Tigers games. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

COSTAR GROUP INC.

After spending $20 million on a key Troy property in 2016 and more than $35 million on building improvements and construction, Orlando-based Unicorp National Developments Inc. built retail and parking and is now looking to cash out for $107.5 million.

Florida developer seeks $107.5M payday for City Center property By Kirk Pinho

Need to know

The Orlando-based developer of the Troy City Center project is trying to sell the property for $107.5 million. Unicorp National Developments Inc. is marketing the recently renovated 1979 office property plus its new parking deck and retail space at West Big Beaver and Crooks roads through Southfield-based The Jonna Group, a division of Marcus & Millichap Real Estate Investment Services Inc. The offering is for a 62,120-squarefoot City Center Shoppes retail center built in 2018 for $51.8 million and a 297,530-square-foot, 13-story office tower for $55.8 million. Rights to use a new 1,468-space parking deck for the office building are also included. A message left last week for Chuck Whittall, president of Unicorp National Developments, was not returned. Outlot tenants include the Seasons 52 Fresh Grill restaurant and Yard House on 30-year leases and a Shake Shack on a 15-year lease, according to The Jonna Group. Fidelity Invest-

Building listed for $107.5 million

kpinho@crain.com

JJCity Center Shoppes, City Center

JJUnicorp National Developments paid $20 million for office building in 2016, spent $35 million-plus on renovations, construction JJBuilt new retail space; apartments under development not included in listing

ments is also an outlot tenant. Other retailers include Red Effect Infrared Fitness, Massage Green spa, Sweetwaters Coffee & Tea, Troy Luxury Cigar Bar, City BBQ and The Great Greek restaurant. Morton’s Steakhouse and The Melting Pot restaurants are in the office space. Key office tenants are Trion Solutions Inc., Babylon Restaurant Group Inc., Somerset Pain Clinic PC, the Real Integrated advertising agency and others, according to The Jonna Group. The Jonna Group says the retail space is 100 percent leased while the office space is 95 percent leased. According to CoStar Group Inc., a Washington, D.C.-based real estate information service, the office space leases for $21 per square foot while

the retail space leases for $45 per square foot. Not included in the listing is a 286-unit luxury apartment development by Unicorp under construction on the property, The Jonna Group said, or ownership of the parking deck. Unicorp paid $20 million for the property three years ago in an online auction when the office tower was just 41 percent occupied, Crain’s reported at the time. Whittall told Crain’s in 2016 that he planned a $130 million development with about 200 apartments. By 2017, that had grown to $150 million, according to a February 2018 story in the Troy Times. The Jonna Group says Unicorp spent more than $35 million on office parking upgrades, tenant improvements, lobby renovations and other building improvements. That doesn’t include apartment construction. The Southfield office of Los Angeles-based CBRE Inc. manages the office and retail property.

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Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB We travel your roads and live on your streets so

Grosse Pointe investor buys Southfield office complex for $5M, plans renovations By Kurt Nagl knagl@crain.com

Grosse Pointe-based real estate investor Foster Financial Co. Inc. has purchased a Southfield office complex for $5 million with plans to spend another $2.5 million on renovations. The investment company, in equal partnership with Northville-based holding company Navigant Oak, purchased the Lahser Center — a pair of buildings totaling 175,000 square feet at 26200/26400 Lahser Road — in a deal that closed Tuesday, said Bradley Foster, owner of Foster Financial. Its previous owner was California-based investment firm Interwest Capital Group LLC. The deal was brokered by Chicago-based JLL, which has offices in Detroit. The property has a four-floor 100,000-square-foot building and a three-floor 75,000-square-foot building. The complex is about half occu-

FOSTER FINANCIAL

Foster Financial purchased an office complex in Southfield.

pied with main tenants including U.S. Bank, Spring Arbor University and Presbyterian Villages. Foster said the exterior and interior of the buildings have fallen into disrepair, and three out of four elevators are out of operation, driving tenants away. He said work began on the elevators as soon as the property was acquired. Additional repairs include new awnings and refreshed lobbies.

The investment company handles construction and architecture inhouse and also has a property management arm. Foster said he is targeting the end of the year to complete repairs and is hoping to stabilize vacancy by then to 85 percent, the current market rate. In 2017, Foster bought Central Park Plaza in Southfield for $5.1 million. At the time, vacancy at the 130,000-square-foot office building was 65 percent. Foster said after completing repairs it is now 93 percent occupied. The latest Southfield acquisition marks the company’s 14th property in metro Detroit — mostly in Southfield and Grosse Pointe. Foster said he is on the hunt for more “value-add office deals.” Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

we know well what is important to your community. Local knowledge and personal understanding – it’s all connected.

FISHBECK , THOMPSON, CARR & HUBER engineers | scientists | architects | constructors

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DEALS & DETAILS MERGERS & ACQUISITIONS BorgWarner Inc., Auburn Hills, an automotive parts supplier, has agreed to sell its thermostat business to Arlington Industries Group Ltd., Wythenshawe, England, an automotive supplier. The sale includes manufacturing facilities in Oberboihingen, Germany and Piracicaba, Brazil. J

SPOTLIGHT

Websites: borgwarner.com, arlingtonindustriesgroup.com J Enertron LLC, Clinton Township, a software company, acquired Jabtech, Utica, a computer consultant. Websites: enertronllc.com, jabtech.net

CONTRACTS J Your People LLC, Huntington Woods, a public relations and busi-

ness messaging development firm, has been named the agency of record for David Pezzola and Icarus Investment Group, Chicago; Detroit Waldorf School, Detroit, and Progressive Mechanical, Ferndale. Website: www. yourppl.com J Fourmidable, Bingham Farms, a real estate management and brokerage company, was awarded the management contract for Van Dyke Apart-

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PEOPLE ON THE MOVE

To place your listing, visit www.crainsdetroit.com/people-on-the-move or for more information, please call Debora Stein at (917) 226-5470 or email dstein@crain.com. FINANCIAL SERVICES - BANKING

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Flagstar Bank

Foley & Lardner LLP

The Community House

David L. Mayer Jr. has joined Flagstar Bank as senior vice president and director of Investment & Insurance Services. He brings 34 years of experience in financial services, recently serving as director of investments at Chemical Bank in Midland, Mich. At Flagstar, he is responsible for overseeing all aspects of the investment and insurance program, including development of a holistic approach to financial planning for customers.

Foley & Lardner LLP has announced Gjina Lucaj has been elected to the partnership, effective February 1, 2019. Gina is a member of the firm’s Business Law practice.

The Community House has named Matthew McCormick to its Board of Directors. McCormick, a graduate of Cranbrook Kingswood School and the University of Notre Dame’s Mendoza College of Business, is director of business development at Metalbuilt LLC. He formerly served on the community service committee of The Community House’s President’s Advisory Council. McCormick will serve a three-year term with the Birmingham non-profit, ensuring it meets its community resource mission.

LAW

Foley & Lardner LLP Foley & Lardner LLP has announced Robert Nederhood has been elected to the partnership, effective February 1, 2019. Robert is a member of the firm’s Business Law practice.

ments, Van Dyke Avenue, between Utica Road and M-59, Sterling Heights. Van Dyke Apartments is being developed through the Chaldean Community Foundation with construction scheduled to begin in spring of 2019 and G. Fisher Construction, Farmington Hills, is the general contractor. Websites: fourmidable.com J DeMaria Building Co. Inc., Novi, a construction company, was awarded the BASF Corp. Wyandotte research and development library renovation project, consisting of demolition and renovation of the second floor library and the third floor office/conference room areas. Website: demariabuild. com J Stoneridge Inc., Novi, a truck parts supplier, invested in a fund managed by Autotech Ventures, Menlo Park, Calif., a venture capital firm focused on ground transportation technology. The $10 million total investment will be contributed over the expected 10year life of the fund. Websites: stoneridge.com, autotechvc.com J The U.S. Army has awarded BAE Systems Inc., Sterling Heights, an aerospace company, a contract worth up to $376 million for the engineering, manufacturing and development phase of the mobile protected firepower program. Under the contract, BAE Systems will produce 12 prototype vehicles at company facilities in Aiken, S.C.; San Jose, Calif.; York, Pa. and Sterling Heights. Website: baesystems.com J Openlogix Corp., Bloomfield Hills, a technology services provider, has a partnership with LMNTRIX, Orange, Calif., a cybersecurity platform, to be an authorized reseller of the LMNTRIX Adaptive Threat Response platform and will be working with the LMNTRIX team to expand offerings in the cybersecurity space. Websites: open-logix.com, lmntrix.com

EXPANSIONS NONPROFITS

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TELECOMMUNICATIONS

The Community House

Comcast

The Community House named Dr. Whitney Weiner to its Board of Directors. Weiner, an awardwinning periodontist with Whole Dental Wellness in the St. Clair Shores/ Roseville area, is a graduate of The Colorado College and University of Iowa College of Dentistry. Dr. Weiner trained in the post-grad periodontics program at the University of Illinois at Chicago, where she received a Master’s Degree in Craniofacial Genetics. She will serve a three-year term with the Birmingham non-profit, ensuring it meets its community resource mission.

The Community House named Sarah Ford to its Board of Directors. Ford, a graduate of Princeton University, is an ardent community advocate and non-profit supporter. As a former employee, and lifelong patient/survivor of St. Jude Children’s Research Hospital, Ford continues to serve the organization as a national spokesperson. Ford also is a longtime supporter of Operation Smile. She will serve a three-year term with the Birmingham non-profit, ensuring it meets its community resource mission.

Comcast has promoted Parvathy Hariharan to vice president of sales and marketing for the company’s Heartland region which includes Michigan, Indiana and Kentucky. Hariharan has spent the past three years as the Heartland Region Vice President of Customer Service Strategy and Operations where she led efforts to improve the customer experience. Hariharan holds a Bachelor of Computer Science degree from the University of Madras, India and an MBA from Michigan State University.

KNOW SOMEONE ON THE MOVE? For more information or questions regarding advertising in this section, please call Debora Stein at (917) 226-5470 or email: dstein@crain.com

J Colliers International Group Inc., Toronto, Canada, a real estate services and investment management company, has added a Southfield-based security advisory division to its project management division in an effort to protect clients’ interests, reduce costs and ensure product and installation quality. Website: colliers.com J Zeiss Group, Oberkochen, Germany, manufacturer of optical systems and industrial measurement and medical devices, represented in the U.S. by Carl Zeiss Industrial Metrology LLC, has started construction on an industrial quality and research facility in Lyon Township and will consolidate four existing Michigan facilities into one location and provide room for growth. It will contain a customer demonstration area with new technologies and systems, offer training, support and metrology services, and house fixture system production and assembly. Website: zeiss.com J Little Caesars Enterprises Inc., Detroit, a pizza chain, is opening its first restaurants in the Republic of Singapore and the Philippines, this month. The franchisee, Palmtree ph Foods Corp., is owned by James Kodrowski, who also manages a group of companies that operate in the region. Website: littlecaesarsinternational.com

Submit Deals & Details items to cdbdepartments@crain.com

Auto supplier Chassix hires new CEO

Southfield-based auto supplier Chassix Inc. has hired a strategy and operations ace as its next president and CEO. Andreas Weller, 49, comes to the company a few months after its previous leader, Weller Douglas DelGrosso, left for the top executive role at Plymouth Township-based Adient plc. Weller was most recently president of the Asia Pacific region for German driveline and chassis parts maker ZF Group. Weller, who starts the job Jan. 28, will oversee Chassix’s global expansion and boosted efforts in electrification, emissions reduction and improved fuel economy, according to a news release. Having lived and worked in North America, Europe and China, he brings to the role a strong understanding of international auto industries. Prior to ZF Group, Weller worked in leadership positions at TRW Automotive and Dana Corp.

Detroit Mobility Lab names institute leader

Detroit Mobility Lab co-founder Jessica Robinson has been named the first full-time executive director of Michigan Mobility Institute. The first initiative of Detroit Mobility Lab, the institute will be a brick-and-mortar Robinson educational facility offering academic, professional, executive, retraining and skilledtrades programs to develop talent in fields such as artificial intelligence, robotics and cybersecurity to help ensure Detroit’s relevance as a global center for future mobility, according to a news release. Starting in 2021, it will also offer a new Master of Mobility degree to be developed with university partners.

Kurtis Wilder returns to Butzel Long

Former Michigan Supreme Court Justice Kurtis Wilder is returning to his old s t o m p i n g grounds, Butzel Long, as of counsel in the law firm’s Detroit office, where he worked early in his career. Wilder After spending nearly 20 years on the Michigan Court of Appeals, the Republican-backed justice was appointed to the state Supreme Court by former Gov. Rick Snyder in May 2017, three weeks after Robert Young Jr. resigned. Wilder lost his Supreme Court seat to private attorney Megan Cavanagh in November. Wilder, 59, joined Butzel in 1989 as a litigation attorney, according to spokeswoman Maribeth Farkas, and left in 1992.

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

CALENDAR TUESDAY, JAN. 22 A Conversation with the Mayor. 11:30 a.m.-1:30 p.m. Jan. 22. Detroit Economic Club. Detroit Mayor Mike Duggan will discuss his 2019 plans for Detroit. The meeting will begin with the unveiling of the 2019 Detroit News NAIAS Readers Choice Awards. Cobo Center. $45 members, $55 guests of members. Website: econclub.org

FRIDAY, JAN. 25 Troy Chamber CEO Series: Dan Carmody. 8-9:30 a.m. Jan. 25. Troy Chamber. Speaker: Dan Carmody, CEO of Eastern Market. Hilton Garden Inn Detroit, Troy. $24 members; $30 nonmembers. Email: theteam@ t r o y c h a m b e r. Carmody com. Website: troychamber.com/events/ceo-series-dan-carmody-eastern-market

UPCOMING EVENTS Five Steps to Networking Mastery. 9-11:30 a.m. Jan. 31. Oakland County. Topics will include: why networking works, how to be ready to network, which online sites are worth the time, how to identify referral partners and how to grow your business. Speaker: Terry Bean, founder, Networked Inc. and Motor City Connect. Oakland County Executive Office Building Conference Center, Waterford Township. $40. Contact: phone: (248) 8580783; email: smallbusiness@oakgov. com Patriotism vs. Nationalism — The New American Challenge. 11:30 a.m.-1:30 p.m. Feb. 7. Detroit Economic Club. Marc Morial, president and CEO, National Urban League, will discuss the distinction between the America of yesterday, and the promise of tomorrow’s America. The Masonic. $45 members, $55 guests of members. Website: econclub.org Power of the Future: 2019 Economic Forecast. 8-9:30 a.m. Feb. 12. Troy Chamber. Panel includes: Jennifer Llewellyn, manager and workforce development director, Oakland County Michigan Works! Agency; Dan Gilmartin, executive director and CEO, Michigan Gilmartin Municipal League; and Sandy Baruah, president and CEO, Detroit Regional Chamber. MSU Management Education Center, Troy. $28 members; $34 nonmembers. Email: theteam@troychamber.com; website: troychamber.com/events/troy-chamber-annual-meeting The Divided City: Poverty and Prosperity in Urban America. 11:30 a.m.1:30 p.m. Feb. 12. Detroit Economic Club. Alan Mallach, author of The Divided City, and Maurice Cox, Detroit’s Planning and Development director, will share their thoughts on what’s

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happening in America’s cities and on Detroit’s urban revival. The Masonic. $45 members, $55 guests of members. Website: econclub.org The Role of Business: Creating Value in Society. 11:30 a.m.-1:30 p.m. Feb. 26. Detroit Economic Club. Jim Hannan, executive vice president and CEO, Koch Enterprises, will discuss Koch Industries’ perspective on the role of business — to create value in society. Westin Book Cadillac. $45 members, $55 guests of members. Website: econclub.org Detroit 2030: A Vision for the Future. 7:30 a.m.-4 p.m. Feb. 28. Detroit Regional Chamber. The 2019 Detroit Policy Conference will discuss a vision for Detroit’s next generation. Leaders from business, government and civic organizations will offer their vision for Detroit 2030 and discuss removing barriers to economic prosperity. Author Jay Pitter is the keynote speaker, and Dennis Archer Jr. will chair the event. MotorCity Casino Hotel Sound Board. $159 members; $235 nonmembers. Contact: Jordan Yagiela, phone: (313) 596-0384; email: jyagiela@detroitchamber.com 16th Annual APACC East West Business Connection. 9:30 a.m.3:30 p.m. March 6. Asian Pacific American Chamber of Commerce. Networking, exhibits and buyer showcase. Laurel Manor, Livonia. $80 member; $105 nonmember. Registration closing date Feb. 20. Contact: Leonie Teichman, email: leonie@ apacc.net Economics of a Health Crisis: How Business Must Lead In the Battle Against Opioids. 11:30 a.m.-1:30 p.m. March 7. Detroit Economic Club. Chris Swift, chairman and CEO, The Hartford, will discuss actions that companies of all sizes can take to help reduce the impact of opioids in the workplace and steps that policymakers can take to support employers in fighting the epidemic. Cobo Center. $45 members, $55 guests of members. Website: econclub.org International Women’s Day Lunch. 11 a.m.-1:30 p.m. March 11. Detroit Regional Chamber. A panel of women executives will speak to business leaders on how they can engage in inclusive practices to foster diversity of thought and encourage all employees to have a voice. Speakers include: Ana Almeida, vice president, customer business unit, Faurecia Automotive Seating; Najah Bazzy, executive director and founder, Zaman International; Adrienne Bennett, president and CEO, Benkari Mechanical LLC; Leigh Ann Hello, vice president, The Cabinet Studio; and Moderator Christy McDonald, anchor, Detroit Public Television. Detroit Golf Club. $45 members; $65 nonmembers. Contact: Andrea Rayburn, phone: (313) 5960340; email: arayburn@detroitchamber.com To submit calendar items visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events.

To place your listing, contact Kate Rozek at 313-446-0485 or email krozek@crain.com www.crainsdetroit.com/classifieds REQUEST FOR PROPOSALS

WATERFRONT PROPERTY

REQUEST FOR PROPOSAL (RFP) FOR GENERAL CONTRACTOR

BEST... VALUE ON LAKE MICHIGAN

The Detroit-Wayne Joint Building Authority (DWJBA) owner/operator of the Coleman A. Young Municipal Center (Center) is seeking Request for Proposals (RFP) from qualified firms who desire to provide general contracting services. The Center is a 745,000-square foot office building located in the heart of downtown Detroit. The DWJBA anticipates the following Scope of Work will be accomplished under the general contractor: 1. Demolition and removal of approximately 13,500 square feet of sidewalk pavers and 6,500 square feet of concrete; to be replaced with approximately 20,000 square feet of concrete 2. Perimeter security fence and integrated vehicular rolling gates at entrances/exits of surface parking lot 3. Pedestrian benches and bike racks Contract terms, plans and specs meeting and site tour to be held prompt in the Erma Henderson (please allow for extra time to checkpoint).

will be available at the mandatory pre-bid on Monday, January 28, 2019 at 10:00 AM Auditorium on the 13th floor of the Center be processed through the lobby security

The deadline for questions related to this RFP is Friday, February 8, 2019 by 5:00 PM (EST) Proposals are due no later than 12:00 PM, February 15, 2019 Public Opening to Follow Interested firms must submit (4) four sealed bid copies no later than: To: Detroit -Wayne Joint Building Authority Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 1316 Detroit, MI. 48226 Attention: Michael Kennedy, Property Manager

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Derek Rafferty is founder of E3 Detroit. The entertainment and events company has a tiny but stylish, glass-enclosed WeWork office in Detroit.

CO-WORKING FROM PAGE 3

Here members can choose from a variety of healthy chips and Kind bars or less healthy Starbursts or Snickers. Members have their form of payment connected to their WeWork mobile app. Displayed in the company’s elevators are the week’s daily beer offerings (local craft, of course) and activities, such as decorating a pumpkin while enjoying cider and doughnuts (during the Halloween season). Tenants have their choice of posh-looking glass offices in every configuration to accommodate one person or more than a dozen. If they only need a short stint at the Detroit office or any of WeWork’s offices across the globe, they can rent a “hot desk” — basically a chair at a table — for $280 a month. WeWork was founded in 2010 in New York City by Adam Neumann and Miguel McKelvey. Its growth trajectory has been rocket-like. Less than a decade later, the company has 400,000 members in more than 400 locations in 26 countries in 99 cities. Its members are entrepreneurs, freelancers and small businesses, but they also serve mid-sized and Fortune 500 companies. The company made news last week with the announcement that it plans to reorganize into three units — one each focused on co-working space, residential space and educational businesses — and rebranding the parent company as the We Co. We Co. has spent lavishly to fi-

nance its fast growth — to the tune of losing $1.2 billion in the first three quarters of 2018.

Detroit presence In the Bedrock Detroit-owned, restored buildings, a few of the Wework offices house automotive suppliers, and even Ford Motor Co. has a tiny office occupied by the only grayhaired worker spotted in the building. “A characteristic of Detroit’s WeWork community is a higher concentration of auto businesses,” said Kyle Steiner, WeWork Detroit community director. “And while the Detroit offices are dog friendly, our members hardly ever bring in dogs. Denver, on the other hand, has a strong dog culture, so its WeWork offices are full of dogs.” Another difference: Beer is a crowd-pleaser in Detroit. “The Denver lifestyle, for example, prefers Kombucha over beer,” Steiner said. His job “makes sure the offices have the pulse of the city and through the engagement of the team we can grow in Detroit,” he said. The offices’ activities also help bring fellow entrepreneurs together either for networking or friendship.

Blooming growth “The flexibility and amenities here make it an easy place to be. I can focus on growing the business,” said Bloomscape’s Mast. “Bloomscape is indicative of what can happen in these offices,” Steiner added.

Bloomscape has its greenhouse in Grand Rapids, where Mast grew up and several generations of his family were commercial growers. But when it came to locating the company office, Mast wanted to be in “downtown Detroit with all the energy that is there. We also felt that being here would give us access to resources outside of the city.”

“Our growth could get us to four employees. So, there is no reason to leave the WeWork space based on how our business is structured. And I love the vibe that is going on in Detroit.” Derek Rafferty

Mast makes no bones about enjoying the WeWork amenities — “the micro-brewed coffee, the phone booths, the windows,” he said. Ryan Landau, Re:purpose founder, started his hiring platform for technology companies a couple of years ago. He was among the first companies to launch in the Detroit WeWork space. He has eight employees: Half are in Michigan and the other half are in other parts of the United States. All work at WeWork “hot desks.” “It’s not distracting to work in the open. If you need privacy, you re-

serve a conference room or a telephone booth,” Landau said. Re:purpose also benefits by networking with other companies in the WeWork office. He has helped some companies find vetted employees and has found positions for those seeking new employment. Landau said the WeWork Detroit location nicely showcases the city to job candidates. Thirty percent come from cities outside Michigan and 70 percent hail from cities in the state. “It’s an exciting time when we pull people (to Detroit) from cities like San Francisco.”

Out of the industrial park E3 Detroit, an entertainment and events company founded by Derek Rafferty, has a tiny but stylish, glass-enclosed WeWork office. He has an assistant down the hall. He moved into his WeWork office because he wanted out of an industrial park in Canton Township. “There was no interaction with our industry and the venues our bands play in,” he said. E3 Detroit books bands for weddings and other events. “Our growth could get us to four employees,” Rafferty said. “So, there is no reason to leave the WeWork space based on how our business is structured. And I love the vibe that is going on in Detroit.” He said networking and talking with other WeWork members about their businesses is useful. “And I’ve made some new friends.” Devon O’Reilly, manager of entrepreneurship at the Detroit Regional Chamber, is the face for people work-

LARRY PEPLIN FOR CRAIN’S

ing in the Planet M Landing Zone, which occupies WeWork’s fourth floor and is specifically designed for mobility startups. It moved into WeWork in October 2017. “We engage members on other floors and connect through the meet and greets. It’s very collaborative,” O’Reilly said.

Finding distinctiveness WeWork came later to the co-working genre in Detroit than some of its competitors. Five years ago, Bamboo Detroit was the first co-working space to open downtown, and almost two years ago, it moved into the Julian C. Madison Building on Washington Boulevard. There, it has been able to add amenities to match competitors such as WeWork, said Bamboo Detroit co-founder and CEO Amanda Lewan. “We’ve tried to evolve our own brand,” she said, adding that tenants are privy to coffee, tea, snacks, highspeed internet, printing, unlimited access to conference rooms, and other perks. Overall, it keeps its prices lower to be an affordable model for nonprofits and “to do a good job of being a diverse community. Sixty-five percent of the companies here are women-owned,” Lewan said. Steiner added that WeWork keeps in touch with other co-working companies such as Bamboo Detroit. “Co-working is a bigger concept than it used to be. Every one (of these businesses) is doing well and believes this industry is growing.”

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

AUTO SHOW FROM PAGE 1

To quote American singer-songwriter Sheryl Crow, who performed at the auto show’s Charity Preview in 2014, “If it makes you happy, then why the hell are you so sad?” The attendees seemingly are victims of a show and industry in transition. Like kids in the waning days of summer break, the possibility of dark days looming ate a hole in their collective happiness. Changing business models, political uncertainty and, maybe, social media have created a glum environment inside and outside Cobo Center. “We’re living in great times; unemployment is near record lows, wages are rising and we just celebrated the fourth-straight year with U.S. (vehicle) sales at 17 million or above,” said Gary Silberg, partner and head of the American automotive practice for advisory firm KPMG. “The industry should be celebrating, but it’s not.” A cut below the auspicious indicators reveals cracks in the auto industry’s economic foundation. Union workers, alongside newly sworn-in U.S. Rep. Rashida Tlaib and other organizations, planned to protest outside Cobo Center Friday as tuxedo-clad and gowned people filled the show floor for the NAIAS’ annual Charity Preview event, which raises millions for children’s groups across the region. The organizations were protesting General Motors’ plan to idle five factories in North America, impacting roughly 6,300 blue-collar jobs in the U.S. and Canada.

Contract talks loom The contention between GM and the labor unions will hang over this summer’s contract negotiations between the UAW and the automaker, raising the chances of a labor strike. Down the supply chain, Van Buren Township-based Visteon Corp. recently cut its 2019 revenue guidance by $100 million. Southfield-based Lear Corp. is expecting flat earnings this year. “It feels like a recession without there being a recession,” Brandon Mason, U.S. mobility sector leader for advisory firm PwC, told Crain’s from atop the Cadillac display at Cobo Center last week. The reason is simple: The industry is no longer reacting to the market. Automakers and suppliers have collectively agreed on taking the path toward an autonomous and electric future of transportation. And that path is lined with bodies. “They are making proactive cuts,” Mason said. “The return on investment is much further out for these investments, so everyone is trying to figure out how to adapt. We’ve never done this before, so they are really making sure they are not going to be caught off guard.” For instance, Lear is forecasting net income down as much as 6 percent lower in 2019 than in 2018, but created an investment arm anyway. The Lear Innovation Ventures Possibilities division is designed to position Lear in front of competitors by investing in nascent future technologies. Last week, Lear announced it had partnered with startup accelera-

tor Techstars Detroit by offering them space at its downtown office as well as serving as a corporate sponsor and on its board. The Southfield-based supplier knows its seating business growth is limited thanks to commodities pricing, limited margins from competition and the likelihood of selling fewer cars in the future. But its electronics systems businesses are growing quickly thanks to electrification, autonomous systems and overall more electronics in vehicles. GM CEO Mary Barra said when it announced its wave of layoffs in November that the automaker will continue to invest in the trucks and sport utility vehicles and crossovers that dominate the U.S. market but it has “the opportunity to take down our capital expenditures while investing more in future technologies like autonomous and electric vehicles.” Electric and autonomous vehicles require fewer workers — electric cars have fewer than 100 moving parts compared to more than 1,000 in internal combustion engine vehicles. So more job cuts are coming. “The companies have got to spend a lot more capital to be autonomous and electric,” Silberg said. “These are massive trillion dollar markets. But there’s a sense of ‘How do we do it? Are we going to be a winner or not?’ And that’s scary.” Complicating already complicated matters is the potential for missteps out of Washington, D.C. With Democrats now in control of the U.S. House of Representatives and a relationship strained by a prolonged government shutdown, ratifi-

cation of the new regional trade pact between the U.S., Canada and Mexico could be in jeopardy. Last week, J.P. Morgan Chase analysts forecast a weaker Canadian dollar in 2019 as pessimism grows for a quick passage of the U.S.-Mexico-Canada Agreement that was finalized last year. President Donald Trump has also taken a hard line against perceived negative impacts to the U.S. from automotive imports. The Department of Commerce wraps an investigation next month into whether the import of vehicles and car parts pose a national security threat to the U.S. Trump has threatened to slap a 25 percent tariff on vehicle and parts imports as soon as the investigation allows — a move that the Center for Automotive Research in Ann Arbor predicts would result in the loss of more than 2 million new cars being sold in the U.S. this year. “I feel like the little black cloud in a dress (reference to a song by English songwriter Billy Bragg), but I’m worried about all of this because the potential is there for a lot of bad things to happen,” said Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research. “Like a Michigan road, there’s a lot of potholes that could steer the industry off course and the players are trying to future-proof their companies when the future is anything but known.”

Buyer impact unclear So far, the industry’s malaise hasn’t hit the consumer market but it could,

Dziczek said. “The industry keeps talking about tightening their belts and pulling back capacity so they’re not caught flatfooted. Well, all of those things are storm clouds to consumers too,” she said. “If consumers are looking at what’s happening with their stock portfolio and their 401(k)s and they see what the auto industry is talking about, they are not going to be making any car purchases.” Silberg said social media is spreading uncertainty in an economy that appears anything but uncertain. “There’s a amplification impact to social media that none of us understand,” Silberg said. “People are very myopic and there’s confirmation bias. Couple that with social media and you can just see this hive mind that is very negative. I mean, we have 3 percent unemployment, wages are up, we’ve reduced taxes and regulation and we have almost no wars in the world. How much better could things be for business? I’m befuddled.” The result is a pared-down show at Cobo — NAIAS Lite as it’s been called on social media. Showgoers spent more time looking beyond the dark clouds, in a dress or not, to the 2020 auto show, an indoor-outdoor hybrid festival of a show in 2020, one with autonomous cars all over the streets of Detroit and no recession in sight. “The good news for companies at risk due to radical changes is there is still time to adapt as the pace of that change is up for debate,” Mason said. “No one is as sure about the auto show.”

NOMINATIONS OPEN

Crain’s Detroit Business will name the 2019 Notable Women in HR in a special report on March 18.

In that report, we’ll profile women who are the glue holding their organizations together, are employee advocates, have an eagle’s eye for talent, consult on best practices, and are considered leaders in their workplaces and in the community.

The form and accompanying materials must be submitted by MONDAY, JAN. 28. Go to crainsdetroit.com/nominate to nominate a woman you know.

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GANNETT FROM PAGE 1

If Alden successfully acquires Gannett, it’s likely to seek to cut expenses in Detroit by shuttering one of the newspapers and cutting jobs, said Alan Mutter, a longtime newspaper industry analyst and consultant in San Francisco who is a newly retired member of the faculty of the Graduate School of Journalism at the University of California at Berkeley. “If Alden gains control of Gannett, the logical step from a business standpoint would be to eliminate one of the two metro titles and publish a single paper in the market,” he said. “This would make it possible to eliminate duplicative activities, starting with — sadly, you guessed it — creating a single newsroom where there previously had been two. Other cost savings can be achieved by establishing a single digital presence, as well as eliminating duplicate administrative, marketing, production and distribution activities.” Mutter termed such a consolidation a “tragedy” for those losing their jobs, and for readers. The newspapers combined have about 200 unionized newsroom staffers, a print audience of a few hundred thousand subscribers, and digital reach that’s in the millions. Experts widely bemoan an atrophied newspaper industry’s ability to monitor government and the powerful on behalf of the public. “The loss of a separate editorial voice also would be a great loss for Detroit,” Mutter said. Those sentiments were echoed by Rick Edmonds, a media business analyst with nonprofit Poynter Institute in St. Petersburg, Fla. “Alden would want to put the two together. I think they would try to maximize profits, probably mainly through cost-cutting. Certainly if they came into the Free Press, I’m sure would be much deeper (job cuts),” he said. It’s far too soon to predict newsroom jobs cuts — which are underway now at both newspapers anyway as part of annual belt-tightening that’s commonplace in the newspaper industry and has cost Detroit’s dailies hundreds of jobs over the years from buyouts, early retirements and layoffs. Alden’s business strategy, however, suggests draconian measures could be likely if it acquired Gannett (the likelihood of which remains unclear at this point). Alden eliminates jobs to siphon as much profit as possible out of a publication. For example, Alden last year ordered 40 job cuts at The Denver Post out of a newsroom of 100 journalists. It then planned a reported 10-15 cuts out of 150 newsroom staffers at The Boston Herald. It eliminated 21 newsroom jobs at its San Francisco Bay Area newspapers via buyouts. The strategy has worked for Alden’s owners and investors. According to newspaper industry analyst Ken Doctor at Harvard University’s Nieman Journalism Lab, Alden’s newspaper unit, Digital First Media, reported a 17 percent profit margin in 2017 and nearly $160 million in profit. Those profits are not being reinvested in the newsrooms and instead are being rerouted into other Alden investments, such as Greek sovereign bonds, according to a report from The Nation. The Washington Post last year described Alden as largely “investment funds domiciled in the tax-le-

CRAIN’S DETROIT BUSINESS

The Detroit News and the Detroit Free Press have joint business functions, while maintaining separate newsrooms, under terms of a joint operating agreement. Newspaper industry analyst Alan Mutter says that could change should the Alden takeover of Gannett happen.

nient Cayman Islands and a clientele that is mostly foreign.” Details about Alden’s financial practices and data emerged in a lawsuit filed last year by another hedge fund, Solus Alternative Asset Management, which owns a minority stake in Digital First Media, The Post said. Alden defended its MNG Enterprises’ newspaper practices via a statement issued to Crain’s by Molly Curry, an outside spokesperson at New York City-based strategic communications advisory firm Reevemark LLC, “MNG is a long-term investor in the newspaper business. We have extensive operational experience and a successful track record in the newspaper industry, enabling us to run newspapers profitably and sustainably so that they can continue to serve their local communities,” she wrote via email. Edmonds noted that while Alden cuts newsrooms deeply, most of its newspapers remain open. “They continue to operate these papers. They have some good journalists doing the best they can with smaller resources,” he said. Could Alden opt to sell one of the Detroit newspapers if it buys Gannett? “They could sell the Detroit News, but I don’t think it’s worth anything. I don’t know who would want it,” Edmonds said. “The precedent is the New York Daily News. It was sold to Tribune Co. for $1, and they may have overpaid because they got into losses.” It’s unclear if the Detroit newspapers are in the red or black because they’re not traditional businesses. They operate separate newsrooms but have joint business functions — advertising sales, printing, delivery, etc. — under a federally approved joint-operating agreement. They have a single profit pool, and Alden

could opt to retain that if it feels maintaining two newspapers will generate more money, or it could cut or combine. Newspaper JOAs are intended to preserve different editorial voices in a market in an industry gutted by advertising and circulation declines, which have ramped up dramatically since the 1990s because of the rise of digital. Online ad sales remain less lucrative than print. Federal antitrust regulators would examine any change to Detroit’s newspaper situation, Mutter said, but he doesn’t expect that to mean

“If Alden gains control of Gannett, the logical step from a business standpoint would be to eliminate one of the two metro titles and publish a single paper in the market.” — Alan Mutter, newspaper industry analyst

much. “Alden would have to jump through a few regulatory hoops to gain approval for the transaction,” he said. “Given the declining revenues and profitability generally suffered by newspapers in the U.S., it should not be hard to make that case. It seems highly likely that Justice, under the current administration, would permit the consolidation.” There were once nearly 30 newspaper JOAs since the federal law permitting them was signed by President Richard Nixon in 1970. Now, there are just five. No one was available from the Justice Department to comment be-

cause of the government shutdown. The current Detroit JOA supplanted a 100-year JOA formed by Gannett and now-defunct Knight Ridder Inc., the former Freep owner, that took effect in 1989. This agreement was born of a convoluted newspaper ownership history in Detroit: Gannett bought The Detroit News and other newspapers and several television stations for $717 million in 1986 from the Detroit-based Evening News Association. In 2005, Gannett bought the Detroit Free Press for $262 million from Knight Ridder and sold The Detroit News for $25 million in stock to Denver-based MediaNews Group Inc., which in 2013 became Digital First Media. So-called vulture investor Randall Smith founded Alden in 2007 and in March 2010 it acquired a large, non-controlling stake in MediaNews Group as its parent, Affiliated Media Inc., also based in Denver, emerged from bankruptcy. The MediaNews Group and former Journal Register Co. newspapers were merged under the Digital First Media name. Gannett owns 95 percent of the JOA partnership and pays millions of dollars annually to The News, per the contract’s terms. The JOA partnership also pays the owner of The News an annual sum beyond any profits. That amount will total about $45 million. When the JOA was modified in 2009 because the newspapers reduced the number of home delivery days, the payment amounts were modified, reducing them about $6 million in total. However, partnership executives over the years have said advertisers prefer two newspapers. The News traditionally caters to conservatives on its opinion pages, while the Free Press leans left. They also generate more ad revenue than a single newspaper would. Regardless of profits, the JOA ex-

pires in December 2025. At that time, either newspaper can end the partnership. If neither partner wants to end it then, it automatically renews through 2030. If Alden assumes ownership of the Freep, the JOA could end much sooner. Detroit News Editor and Publisher Jon Wolman and Free Press Editor and Vice President Peter Bhatia each declined to comment on the Alden-Gannett situation. Both editors have been overseeing a round of newsroom job cuts in recent weeks unrelated to the takeover bid. Both newspaper companies have significant local and national footprints. Alden, through its Digital First Media arm, also owns The Oakland Press in Troy Macomb Daily in Mt. Clemens, The Daily Tribune covering southern Oakland County; and The Morning Sun in Mt. Pleasant, along with a batch of non-daily publications in Michigan. Elsewhere, its notable titles include The Denver Post, The San Jose Mercury News, The Orange County Register and The Boston Herald. In Michigan, Gannett also publishes Port Huron’s Times Herald, Lansing State Journal and the Battle Creek Enquirer. Its portfolio includes prominent newspapers such as USA Today, The Indianapolis Star, The Cincinnati Enquirer and The Arizona Republic. Gannett in 2015 spun off its more profitable broadcast and digital arms into a new company called Tegna, leaving the newspapers under the standalone Gannett name. Alden explicitly laid out its case of the Gannett takeover in a Jan. 14 letter, citing share value and what it characterized as mismanagement. “Gannett has lost 41 percent of its value since its debut as a public company two and a half years ago, significantly underperforming its peer group and indices,” MNG wrote in the letter to Gannett’s board of directors. “Frankly, the team leading Gannett has not demonstrated that it’s capable of effectively running this enterprise as a public company. Gannett shareholders cannot sit by and watch further value erode while the Board casts about for a strategy and a leader, especially when there is an opportunity to maximize value right now. We believe Gannett shareholders deserve better.” That same day, Gannett issued a statement saying that it would examine the offer. “Consistent with its fiduciary duties and in consultation with its financial and legal advisors, the Gannett board of directors will carefully review the proposal received to determine the course of action that it believes is in the best interest of the company and Gannett shareholders,” the company said. Gannett shares were trading at more than $11 on Friday morning. They peaked at $17.48 in December 2015 and cratered to $7.85 in October 2016. Hedge funds have increasingly taken stakes in the newspaper industry since the 2008 recession. Private-equity firm Fortress’ New Media Investment Group owns nearly 150 small-town newspapers via its GateHouse Media unit, and Chatham Asset Management LLC is one of the largest shareholders and bondholders in publisher McClatchy Co., according to Bloomberg. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

crainsdetroit.com Editor-in-Chief Keith E. Crain Publisher KC Crain Group Publisher Mary Kramer, (313) 446-0399 or mkramer@crain.com Associate Publisher Lisa Rudy, (313) 446-6032 or lrudy@crain.com Managing Editor Michael Lee, (313) 446-1630 or malee@crain.com Product Director Kim Waatti, (313) 446-6764 or kwaatti@crain.com Digital Product Manager Carlos Portocarrero, (313) 446-6056 or cportocarrero@crain.com Creative Director David Kordalski, (216) 771-5169 or dkordalski@crain.com Assistant Managing Editor Dawn Riffenburg, (313) 446-5800 or driffenburg@crain.com News Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or abragg@crain.com Design and Copy Editor Beth Jachman, (313) 446-0356 or bjachman@crain.com Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766

ASSOCIATED PRESS

DTE Energy’s coal-fired plant in Monroe is scheduled to close in 2040.

COAL

FROM PAGE 3

Consumers Energy has said it plans to retire its five remaining coalfired plants from 2021 to 2040 and replace them with renewable energy, primarily wind and solar, along with supercharged programs to improve efficiency, demand response, advanced energy saving technology and regional market purchases. Other utilities around the country are taking similar tacks to replace fossil fuels with renewable energy, he said. DTE Energy has announced plans to retire three coal plants — River Rouge, St. Clair and Trenton — which will all be closed between 2020 and 2023. Two other plants in Belle River and Monroe will close in 2030 and 2040, respectively. Interim plans call for DTE replacing much of the generation by building at least one and possibly two natural gas-fired plants, quadrupling renewable energy generation, increasing electricity efficiency programs and by using other technology to boost clean power. “For a long time a debate was going on how to increase use of renewables for generation. There were political fights (in the state Legislature) for (mandated or voluntary renewable) energy standards,” said Doug Jester, a principal with 5 Lakes Energy LLC in Lansing. “We are now at a point where wind and solar are both cheaper in generating electricity than new fossil fuel plants, and we are close to (matching the costs of ) operating existing fossil fuel plants,” said Jester, who has worked on utility regulation for more than 25 years. So far, DTE has pledged to up its renewables to 25 percent from 10 percent, which is less than Consumers’ previously submitted integrated resource plan pledge to increase renewables to 43 percent from 10 percent. Both companies say the massive reduction in renewable energy capital costs led to their change of heart when it comes to wind power and especially solar. In March, DTE will submit its integrated resource energy plan to the Michigan Public Service Commission to explain how the company will proceed to fully replace coal-fired generation, which now amounts to about 65 percent of its electric gener-

“We are now at a point where wind and solar are both cheaper in generating electricity than new fossil fuel plants, and we are close to (matching the costs of) operating existing fossil fuel plants.” Doug Jester

ation. Some experts are predicting DTE could increase renewable energy production to as much as 40 percent of generation, as it has suggested in energy meetings with the MPSC and other groups. In 2018, DTE told Crain’s that it will add an additional 1,000 megawatts of renewable, mostly wind, by 2023 and another 3,000 megawatts more of renewables by 2040. DTE currently has 1,004 megawatts of renewable power, including 909 MW of wind, 71 MW of solar and 23 MW of landfill gas and biomass. Those numbers are steadily growing. What is unclear is if DTE’s IRP will include a proposal to construct a second gas-fired plant, a possibility it has floated in previous statements to the MPSC. DTE officials have said they are still studying options for the plan. “It will be interesting to see if DTE takes this more modern approach and move on from traditional business model of developing fossil fuel plants and supply fuel to them” to what other utilities are doing and replace with renewables and alternative sources, Jester said. “We should be retiring old fossil fuel plants before they wear out. It is cheaper to replace them (than) to operate them,” he said. In a statement Thursday from DTE, Irene Dimitry, vice president of business planning and development, said DTE is still developing its IRP, which will look out over 20 years to identify energy needs for its 2.3 million electricity customers. It plans to submit the IRP at the end of March and every five years afterward.

Major decisions for DTE involve how to replace its Monroe and Belle River coal-fired plants when they close. “With the demand for electricity declining due to increased energy efficiency, and given existing and planned investments in cleaner natural gas and renewables, DTE does not foresee a significant capacity need until 2030 after its Belle River power plant retires,” Dimitry said. Other key decisions involve whether to increase renewable energy generation beyond DTE’s already announced 25 percent goal by 2030. “Assumptions about the future costs, viability, and reliability of increasing levels of renewables and energy efficiency are critical to determining the optimal resource portfolio to serve our customers — and these assumptions can change significantly over the course of just a few years,” Dimitry said. Since DTE’s last IRP was developed in 2017, Dimitry said, assumptions about electricity demand and capacity needs in 2030 have changed and only half the amount that was forecast is needed because of reduced demand and other factors. “DTE has not made a decision yet and does not expect to make a specific recommendation in its March 2019 IRP filing on how to meet the expected capacity need in 2030 after DTE’s Belle River power plant retires,” Dimitry said. Belle River provides about 8 percent of DTE’s electricity generation. The Monroe plant, which is scheduled to close in 2040, provides 30 percent. She said DTE’s IRP could include needs for increased renewables past 2030, expanded programs to reduce energy waste and reduce peak demand, new technologies including storage and cleaner natural gas. But any final decision is still being developed by DTE executives, she said. Over the next five years, Jester said the picture will sharpen on how the utilities will move from coal to gas and then to renewable energy sources. “I think they (DTE) will have to choose more renewables and efficiencies. It is the least expensive option. The challenge for DTE is that it is not comfortable on how to assure reliability using renewables,” he said. There is some pressure from cor-

porate customers to increase availability of renewable energy. More than 78 major corporations, including General Motors, McDonald’s, Walmart and Microsoft, have committed with the RE100 pledge to use 100 percent renewable energy for power sources by 2050. “Many companies want to take advantage of the utilities’ offer to make 100 percent renewable. Those programs are in development and will be available in the coming year,” Jester said. “They will still buy electricity but want 100 percent coming from renewables.”

Electric vehicle charging Another trend to watch in 2019 that could impact electricity generation and costs is how the auto industry moves forward with electric vehicles. Consumers and DTE have rate cases before the MPSC that seek approvals for pilot projects to develop EV charging infrastructure, working with property owners where the charging stations will be located. Jester said moving to EVs also will help electric customers with rising rates. Because EVs charge during offhours, the increase in electricity used can offset the large fixed costs of the utilities, which can lower overall rates, he said. “EVs are becoming more feasible with the cost of batteries coming down. It is important to Michigan that our auto industry makes that conversion (to electric and away from gasoline). It will take a few years, but we need to do what we can to help them with that transition. “The utilities will supply electricity for (the charging stations). The (pilot) programs are modest in scale. If approved they will give a basic network of fast charges along the highways. You can take a trip and charge along the way. (Now) EVs are limited to short range, charging at home. These chargers will be installed in 2019 and 2020. “If all road transportation were electric, electricity sales would increase by 30 percent, but electricity system costs would only increase by 12-15 percent. That difference could be spread over the existing electricity sales, which can lower rates.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

REPORTERS Annalise Frank, breaking news. (313) 446-0416 or afrank@crain.com Jay Greene, senior reporter, health care. (313) 446-0325 or jgreene@crain.com Anisa Jibrell, breaking news. (313) 446-1612 or ajibrell@crain.com Chad Livengood, senior reporter, Detroit rising. (313) 446-1654 or clivengood@crain.com Kurt Nagl, breaking news. (313) 446-0337 or knagl@crain.com Kirk Pinho, real estate. (313) 446-0412 or kpinho@crain.com Bill Shea, enterprise editor, the business of sports. (313) 446-1626 or bshea@crain.com Dustin Walsh, senior reporter, economic issues. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter, nonprofits and philanthropy. (313) 446-1694 or swelch@crain.com

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Glancy support for nonprofits expected to continue By Sherri Welch

The support Alfred Glancy III and his wife, Ruth Roby Glancy, provided over decades for arts and culture and other area causes will continue, their daughter said last week. The family’s goal is to continue to grow the foundation and to operate it for generations to come, supporting organizations Al Glancy and Ruth Roby Glancy felt strongly about, said

GLANCY FROM PAGE 3

Time and talent Glancy was named to Crain’s inaugural “Most Powerful People” list in 2006 and was still on the list in 2010, nearly a decade after he’d retired, for the many connections he’d made. In Detroit in the 1970s and ’80s, not much happened without Glancy’s participation or blessing, his longtime friend Kurt Luedtke, who was executive editor of the Detroit Free Press between 1973 and 1978, said in Glancy’s obituary. “... Effortlessly and without an ounce of striving, he belonged to everything and knew everybody who was deemed to be anybody,” Luedtke said. The list of nonprofit, business and civic boards Glancy graced is long. He chaired several, including: Detroit Renaissance Inc., Detroit Medical Center, Detroit Symphony Orchestra, New Detroit Inc., Detroit Economic Growth Corporation, Georgia-based MLX Corp., Seattle-based Unico Properties and the Wayne County Airport Authority Board. He also served as a director/trustee on many other boards, including: Business Leaders for Michigan (formerly Detroit Renaissance), Citizens Research Council of Michigan, Community Foundation for Southeast Michigan, Detroit Institute of Arts, Hudson-Webber Foundation and the University of Michigan Visiting Com-

Jody Glancy, chair of the Glancy Foundation, which was started by her great-grandfather and is administered by a law firm in Atlanta, Ga., where much of the Glancy family still lives.

Al Glancy and Ruth Mary Roby, who suffers from Alzheimer’s, made a number of large gifts through the foundation over the years, their daughter said. “We’ve cut the giving back in the last few years just to have the overall value of the foundation increase. But we keep on supporting those organizations that were most important to our parents,” she said. Among the local organizations receiving grants of $1,300-$5,000 from

the foundation last year were the Detroit Symphony Orchestra, Michigan Theater and Pewabic Pottery. “There’s nothing written that we’ll give to the DSO (or other organizations) in perpetuity,” she said. “But core to my brothers’ beliefs and mine is we’ll continue to support those organizations and won’t invade the principal. “We want the foundation to continue to grow and give.”

mittee for the Michigan Center for 30-plus years ago; he was a commit- for broader good in the community ted guy.” Theoretical Physics. — things like neighborhood revitalGlancy was involved in so many ization and education — to widen its At the Hudson-Webber Foundation, Glancy served as a director for things, she said. Under his direction, donor base as millions of dollars in 21 years — 15 as treasurer — before MCN was involved in charitable ser- state funding dwindled, said Peter retiring from the board in 2010 and vice to the community. Cummings, executive chairman of But even after Glancy stepped Detroit-based real estate developer then serving on a finance committee for another four years. During his down from corporate boards, he con- The Platform LLC, a past chairman tenure, he helped fellow board tinued to serve on many nonprofit of the DSO and the person who members learn about the city’s is- boards “because as an individual, he brought the idea of the development sues and needs, drawn from the also cared, beyond the corporate life to the DSO. many organizations he was involved he always had,” Noland said. Glancy “was a wonderful backer of with, said Chairwoman Jennifer the project and a wonderful supportHudson Parke. er of the DSO, and he could have said Four decades of service “Al was not shy. Because of all the it was too risky or we didn’t have the different hats he wore in town reGlancy’s longest board tenure was assets to back this up,” Cummings gionally and in Seattle and other with the DSO, where he served as a said. “But he was a believer who beplaces, he had many different out- director for 40 years before stepping lieved in the future of Detroit.” looks than others Cummings said Ormight,” she said. “Al brought a great wit and a chestra Place was one “He was not at all generous spirit to our meetings of the key catalysts for hesitant to share his the Midtown boom, opinions and banter and friendships. He will be missed.” which today includes about, in a friendly way, — Jennifer Hudson Parke, chairwoman of the Whole Foods near with others about the Hudson-Webber Foundation Woodward and Mack those.” and a slew of other Glancy helped spark healthy con- down in 2014. large developments. versation about any issue, and that He recalled Glancy addressing the He is widely credited with helping drew others to speak their minds, as to save the organization in 1990 when musicians at the end of a DSO Eurowell, Hudson Parke said. then-governor John Engler signed an pean tour in the late 1990s. Toward “Al brought a great wit and a gener- executive order eliminating the the end of his comments, he was in ous spirit to our meetings and friend- DSO’s line item from the state bud- tears, Cummings said, out of his apships. He will be missed,” she said. preciation for the musicians and get, costing it over $3.5 million. Glancy was a founding board memGlancy also led the orchestra’s what they did for the symphony and ber of the Community Foundation for board during its launch of the $80 the city. Southeast Michigan, joining its board million Orchestra Place develop“He had this kind of gruff exterior, in 1984 and serving for 33 years, Presi- ment in 1996, a project that led to re- but he had a heart of gold. Once you dent Mariam Noland said. vitalization of the area around Or- got to know Al, his heart was always The longevity of his board service chestra Hall. in the right place,” Cummings said. is not commonplace, she said. “It Glancy wasn’t “a table pounder” The logic at the time was that the speaks to leadership that was in place DSO had to present itself as a force and he didn’t make big, public

speeches, but he was an influencer, said John Rakolta Jr., chairman and CEO of Walbridge, who served for years on New Detroit’s board with Glancy. “He and I had a lot of discussions back in the ’80s. Much of what he said really influenced me as a businessman ... to take a look at what role my company had in society.” As CEO of MCN Energy, Glancy was focused on making sure the company thought about its impact on all stakeholders, not just shareholders, long before that perspective was in vogue, Rakolta said. Glancy believed MCN was responsible to not just shareholders, but also its employees, customers, suppliers and the community, whether it was the symphony, United Way, the Boy Scouts, Junior Achievement, local hospitals or the environment, Rakolta said. “He was model 21st century businessman back in the 20th century ... he had a social conscience.” That’s something that can serve as a model for today’s 30- and 40-yearold entrepreneurs, providing an example of how they should take a more important role in shaping tomorrow, Rakolta said. “We need a hundred more Al Glancys ... a thousand more,” he said.

fore becoming dean of MSU’s College of Engineering. In 2013, Simon elevated Udpa to EVP for administrative services. Last January, as MSU was getting international attention for Nassar’s abuse of athletes in a campus clinic and failures by university employees to stop him, Udpa penned a letter to the MSU community expressing his “shock” and “great sadness caused by the actions of individuals whose values were completely antithetical to those of ours and the institution we hold dear.” At that time, Udpa warned students, faculty and staff of “a long and difficult road ahead” as the university responded to investigations, lawsuits and administrative upheaval. “We cannot change the past, but we can and will devote time and resources to fostering healing and creating a culture that provides a safe environment for all members of our community,” Udpa wrote in the email. MSU board members expressed optimism that Udpa could lay the groundwork for a new president. “I think he is a natural healer,” said new Trustee Nancy Schlichting, a former CEO of Henry Ford Health System. “I think he will bring stability, calm, good, thoughtful decisions

to the university.” Schlichting, who is credited with turning around the Henry Ford Health System in Detroit, said a culture change and turnaround at MSU won’t be easy for Udpa. “These are not easy transitions,” Schlichting said. “I would ask the entire academic community, students, faculty, all of the leaders, alumni to really support Satish in this role over the next several months.” Udpa said he would not apply for the permanent job. “I recognize it’s a challenge, but at the end of the day this is a job that needs to get done,” Udpa said. “We can’t continue to operate the way we have for the past two years.” The board’s challenge over the next five months will be to recruit and vet a new chief executive who can run the university while navigating the long-term healing, said Peter Van Dyke, CEO of Van Dyke Horn, a Detroit-based public relations firm. “In that person, they have to really consider both optics and expertise,” Van Dyke said. “I think that’s where they were lost in the last appointment. The optics (with Engler) were terrible.”

swelch@crain.com

Jody Glancy: Wants foundation to grow, give.

Her brothers, Alfred R. Glancy IV “Rob” and Andrew Roby Glancy, serve as trustees of the foundation. Jody Glancy, controller at BNE Services in Livonia, declined to discuss whether her father had left provisions in an estate plan to further fund the foundation. The fair market value of the foundation’s assets at the end of 2017 was just over $5.4 million. It made a total of $43,800 in grants last year.

MSU

FROM PAGE 1

“If he can handle the fundamentals of showing respect for survivors and placing them as a priority, then his time as interim will be a bridge to a president who can really move the university forward.” Udpa’s tenure is likely to be even shorter than Engler’s, but it comes at a crucial time for a university trying to heal. The board of trustees has set a goal of hiring a permanent president by June so that the university is under new management by the start of the 2019-2020 school year next fall. Engler’s abrupt departure from MSU’s top job came on the heels of a series of eyebrow-raising comments he made about the victims of Nassar’s abuse and the culture on campus that critics contend allowed Nassar to stay employed after initial complaints about his behavior. The survivors, who included MSU student athletes and young female gymnasts from around the country, have been in the public spotlight of the #metoo movement since they lined up for days last winter to speak in open courtrooms about his abuse and manipulation during Nassar’s

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

Former Michigan governor John Engler resigned last week as interim president of Michigan State University.

sentencing hearings. Nassar is now in prison for the rest of his life. Engler told The Detroit News the week before his ouster that Nassar’s survivors were “enjoying” the spotlight getting “awards and recognition” for forcing MSU to make institutional changes and pay out a $500 million settlement. Udpa comes from a completely

different pedigree than Engler, a three-term governor who started a second career lobbying in Washington, D.C., for big businesses after leaving office in 2003. Michigan State hired Udpa in 2001 as an engineering professor after he taught at Iowa State University. He later chaired the Department of Electrical and Computer Engineering be-

Sherri Welch: 313 (446-1694) Twitter: @SherriWelch Crain’s Reporter Kirk Pinho contributed to this report.

Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

C R A I N ’ S D E T R O I T B U S I N E S S // J A N U A R Y 2 1 , 2 0 1 9

THE WEEK ON THE WEB

RUMBLINGS

Concepts for reimagined Milliken Park in Detroit revealed

Ford: Partnership or no, family won’t cede control

JANUARY 11-17 | For more, visit crainsdetroit.com

ichigan officials are moving to make over a key state-owned property along the Detroit River to link to a larger-scale revamp of the riverfront long plotted by the city and nonprofits. New concepts for William G. Milliken State Park and Harbor include a marina promenade, peninsula playfields, and a dry dock ship, plaza and pool. The plans were displayed in a public meeting last week at Orleans Landing, an apartment complex adjacent to the park, which is just east of downtown along Atwater Street. The three concepts vary in scope, but all seek to leverage the area's natural beauty, history and proximity to the riverwalk and Aretha Franklin Park. Construction on the reimagined 31-acre space could start as soon as this fall. “Things have changed since the park came into existence,” Ron Olson, chief of parks and recreation for the DNR, told Crain's. “Other dynamics on the riverfront have changed. This is a recapitulation of what we've been planning that links up with the RiverFront Conservancy’s plans and those of the city of Detroit.” Opened in 2004, the park features a 52-slip harbor, 63-foot light tower and covered picnic areas, according to the Detroit Riverfront Conservancy Inc.’s website. A wetlands area was introduced in 2009 and, in 2014, the 41,000-square-foot, state-owned Outdoor Adventure Center opened across the street on the edge of the Dequindre Cut Greenway. This development and other capital improvements totaled $54 million in 2014, Vicki McGhee, chief of planning and infrastructure for the DNR, told Crain’s. Detroit-based SmithGroup was hired to design the new concepts. The firm, which has worked extensively on the 5 1/2 mile riverfront redevelopment from the Ambassador Bridge to the MacArthur Bridge at Belle Isle, will have help from Michael Van Valkenburgh & Associates, the New York City-based architect tapped by the Detroit RiverFront Conservancy to lead a $50 million transformation of the West Riverfront Park. The three concepts being considered are: J “Epicenter”: A plan anchored by the Outdoor Adventure Center that establishes stronger connections between Jefferson Avenue, Atwater and the riverwalk. It would also repurpose the berm at the park into an "adventure play" area. J “Rollin’”: A plan that involves “stronger internal connections between large open spaces for play and learning,” according to planning documents. It includes a pier, marina building, rolling lawn and “more intimate experiences with the river.” J “Rooted”: A plan calling for expanded family areas, learning experiences and open visibility from Atwater, with stronger connections to Jefferson. It includes a dry dock pool and peninsula playfields. Each concept contains several of the same components, such as inter-

SMITHGROUP

One concept for Milliken State Park and Harbor on the Detroit River reimagines the riverfront space with “stronger internal connections between large open spaces for play and learning,” according to planning documents.

Detroit digits A numbers-focused look at last week’s headlines:

$107.5M

Asking price for the recently renovated Troy City Center office property

800

Number of new employees mortgage lender United Shore aims to hire in Pontiac this year

$1.114M

Asking price for rocker Jack White’s former home in Detroit’s Indian Village

job search and resource website. J Bedrock LLC added to its significant holdings in downtown Detroit’s Capitol Park district with the purchase of a six-story building at 1211 Griswold St. Dan Gilbert’s real estate company bought the Herman and Ben Marks Furs building Nov. 13 for $3.85 million. Existing condominium and single-family home sales trends from 2018 continued into December: falling inventory and creeping sales prices. Metro Detroit’s median home sales price was $175,000 last month, a 3 percent uptick from $170,000 in December 2017, according to December market data from Farmington Hills-based Realcomp Ltd. II. Sellers listed 12,347 homes last month, an 8.4 percent drop yearover-year.

ith all of the buzz at the North American International Auto Show about Ford Motor Co.’s new partnership with Volkswagen Group to build trucks and vans together, Executive Chairman Bill Ford Jr. wanted to make one thing clear: The Ford family won’t be ceding any control of the 115-year-old business. In negotiations with the Germany automaker, cross-company ownership between Ford and VW “never came up,” Bill Ford Jr. said. “I suppose you never say never, but I sure don’t ever see a day where the Ford family gives its voting control of Ford Motor Company,” Ford told Detroit News columnist Daniel Howes during an on-stage interview at the conclusion of the auto show's industry and media preview days. The descendants of auto pioneer Henry Ford hold a special class of stock that gives them 40 percent of the voting power among the compa-

ny’s shareholders. Under the partnership announced last week, Ford Motor will develop midsize pickup trucks and commercial vans for both automakers by 2022 for just the South American, African and European markets, while VW will build a city van for European markets, Automotive News reported. The two global automakers also are exploring working together on development of autonomous and electric vehicles, a potential partnership Bill Ford Jr. called “really complicated.” It’s not yet known whether that might mean a presence for Volkswagen in Corktown, where Ford is renovating the long-empty Michigan Central Station to house its EV and autonomous vehicle development. Ford will speak at Crain’s Newsmaker of the Year luncheon on Feb. 25 at MotorCity Casino Hotel. Tickets are available at crainsdetroit.com/ newsmakerevent.

OTHER NEWS connectivity to nearby streets and assets, and repurposing natural features, such as the park’s berm. Ujijji Davis, landscape architect for SmithGroup, said concepts are not set in stone the way they were presented. “We’re going to take all those concepts and then try to funnel them into one design,” Davis said. “The concepts do not stand alone. They are not fixed.” One of the park’s most notable features, the berm, was created by dredging along the river and originally considered an eyesore. McGhee said it is one of the highest points along the river and offers a picturesque view. “Rather than just a lump of grass, we want to make it a feature,” she said.

BUSINESS NEWS J The Michigan Economic Development Corp. has awarded $4.7 million in grants to transportation agencies and mobility companies to develop new transit options for seniors, veterans and residents with disabilities in metro Detroit, Grand Rapids and rural areas of the state. J United Shore Financial Services Inc. said it is aiming to hire more than 800 workers at its Pontiac headquarters this year. The mortgage wholesaler plans to add employees — full-time positions mostly in underwriting, operations and IT — to “sustain its rapid growth,” according to a news release. The average underwriter at the company makes $40,000 per year, according to Glassdoor, a

J HopCat has gone way out to find a new name for its Crack Fries. The Grand Rapids-based bar and restaurant chain is changing the name of its popular snack to “Cosmik Fries” to distance itself from a word associated with the drug epidemic, the Associated Press reported. J Wayne State University plans to start using Microsoft Corp.’s professional curriculum in courses to make students more competitive in the job market. New Microsoft-built tools, software and coursework ideas are coming to Wayne State through a partnership with the Redmond, Wash.-based tech giant. The public university based in Midtown Detroit is among 10-12 institutions Microsoft expects to participate in a pilot program. Wayne State is among the first to officially join. J Mort Crim Communications Inc. has made a half-dozen new hires heading into the new year after adding clients and predicting record annual revenue. Its revenue for 2018 was $5.1 million and is expected to hit $6 million this year J Chinese injection molding supplier Wellmei Holding Co. Ltd. plans to invest $1.9 million and create 71 jobs by establishing its first North American manufacturing operation in Troy. The subsidiary, Wellmei U.S. Inc., plans to lease 20,000 square feet to 40,000 square feet of space to accommodate mold production as it builds plastic injection-molding lines to serve the automotive and medical industries, according to a Michigan Economic Development Corp. memo.

Roger Penske has no plans to step down from Bloomfield Hills-based Penske Automotive Group, a company he’s led since 1999, but a succession plan is in place that would call on a Penske family member to help steer the nation’s No. 2 dealership group.

Roger Penske not retiring, but has succession plan W

hile Roger Penske has no plans to step down from Bloomfield Hills-based Penske Automotive Group, a company he’s led since 1999, a succession plan is in place that would call on a Penske family member to help steer the nation’s No. 2 dealership group. The plan involves naming one of Penske’s sons, either Roger Penske Jr. or Greg Penske, as Penske Automotive’s nonexecutive chairman, should anything happen, the elder Penske said at the Automotive News World Congress last week, in a discussion that also touched on electrification and the company’s used-vehicle strategy. “We have good succession,” said Penske, the chairman and CEO, who turns 82 next month. “I think because my two sons — Roger Jr., my oldest son, and Greg — were in the business, I’ve taken each one of those, and one of them is on the board of the public company, Penske Auto Group, and the other is on the board

of our truck-leasing business. And I switch them every three years.” Greg Penske serves on the Penske Truck Leasing Advisory Committee, while Roger Penske Jr. is on the Penske Automotive board. The next CEO of the company would be determined by the board of directors, a Penske Automotive spokesman said. Penske told Crain’s sister publication Automotive News last week that he has no plans to retire. “I love the business,” he said. “I’ve been able to afford my family and their families a great outcome based on the automobile business and also our truck-leasing company. “My plan is to, as long as I can be active and productive, as a majority shareholder, [I] want to stay involved,” he added. “And I think the business requires intense thinking in many cases and problems you’ve got to deal with, and I think that keeps you young and focused.”

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