Crain's Detroit Business, Feb. 18, 2019 issue by Crain's Detroit Business

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A PIPELINE OUT OF BALANCE

Demographics put the squeeze on colleges and universities

By Dustin Walsh dwalsh@crain.com

Michigan’s colleges and universities are facing a demographic reckoning. The number of teenagers graduating from high school across Michigan is on a decade-long decline, compounded by a tight labor market causing high school grads to seek work instead of education. The dip in graduates has placed continued enrollment and budget pressures on the state’s higher education institutions, some of which are filling gaps with younger high-school students, older students and former dropouts. The number of high school graduates in Michigan has dropped nearly 8 percent in the last decade — from 112,736 graduates in 2009 to 104,070 graduates in 2018. The state’s largest universities have been skimming a higher percentage of Michigan’s recent

high school graduates over that time. For instance, 5.6 percent of the smaller graduating class from Michigan high schools in 2018 enrolled at Michigan State University, up from just 3.9 percent of the larger graduating class in 2009. Same goes for Grand Valley State University, which enrolled 3.1 percent of recent high school graduates in 2018, from 2.4 percent in 2009 and Oakland University, which enrolled 2.2 percent of those grads in 2018, up from 1.6 percent in 2009. That’s translated to a sharp decrease in recent in-state high school graduate enrollment for other universities, including Central Michigan University and Western Michigan

University, which faced a more than 18 percent and 11 percent decrease in those students enrolling over the past decade, according to data from the Michigan Department of Education. “Our budget is very much tuition driven, so of course you have budget challenges,” said Robert Davies, who became CMU’s president in September. “We’ve made budget decisions, such as reductions in certain areas.” SEE COLLEGE, PAGE 22

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Velodrome cycles first year, plans for sustainability Page 3 STARTUPS

New angel investor group launches

Woodward Angels to hold first meeting, fills gap in region By Tom Henderson thenderson@crain.com

A new angel-investor group in Southeastern Michigan, the Woodward Angels, has been quietly planning a launch and will convene its first meeting this week at the Shinola Hotel in Detroit. The group will be a legal affiliate of Grand Angels Holding Co. LLC, the holding company for the Grand Rapids-based Grand Angels, considered the most active angel investor group in Michigan and one of the most active in the Midwest. Tim Parker, the president of the Grand Angels, said he expects about 100 high-net-worth individuals at the inaugural informational meeting, which is closed to the public and aimed at getting attendees to join the new group. The creation of the new group would help fill a gap in the angel-investing community since the Great Lakes Angels, another group, stopped holding monthly pitch meetings early last year. He said the Woodward Angels is part of an ongoing effort to roll out affiliated investor groups around the state. In August 2017, the Grand Angels helped launch the Ka-Zoo Angels as a legal affiliate. “That was our prototype to see how it worked, and it’s worked out well,” he said. As of early January, the Ka-Zoo Angels had 15 members and had invested $435,000 in eight companies. Parker said those affiliate investor groups will be part of the holding company DBA called the Michigan Capital Network. SEE ANGELS, PAGE 22

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Whitmer warns of infrastructure ‘catastrophe’

Gov. Gretchen Whitmer issued a dire warning last Tuesday about the state of Michigan’s roads and K-12 education system, saying both components of the state’s economic infrastructure are in a state of “crisis.” Whitmer used her first State of the State address as governor to try to gin up public support for a still-undefined funding solution to fixing Michigan’s crumbling roads and underground infrastructure. “We need to act now before a catastrophe happens or the situation becomes truly unrecoverable,” Whitmer told the Republican-controlled Legislature. Whitmer, a Democrat, will detail her road funding plan on March 5 in her first budget address to the Legislature. But she used Tuesday’s speech to criticize a past GOP Legislature’s 2015 plan, which gradually increases annual road spending by $1.2 billion by the 2021 fiscal year. That plan is partly funded by a 7-cent gas tax and 20 percent vehicle registration fee that went into effect in 2017. “We’re paying a road tax that doesn’t even fix the damn roads,” said Whitmer, repeating her campaign slogan. During the televised address, the state’s new chief executive said poor

road conditions have resulted in emergency closures of I-75 in Oakland County to patch “dangerous potholes,” chunks of concrete falling from bridges onto vehicles and “bridges with hundreds of temporary supports holding them up.” “While it’s hard to imagine things getting worse, that is precisely what will happen if we don’t act boldly and swiftly,” Whitmer said. “Because over the next decade, the share of Michigan highways and trunk lines in poor condition will more than double — worsening the severity of the danger and costing drivers across our state even more.” On the state of education, Whitmer said Michigan has a crisis in public school classrooms that’s less visible than jarring potholes in the roads. “The second crisis is harder to see, but we all know it exists: It’s the crisis in education and skills,” the governor said, noting Michigan has experienced the worst decline in childhood literacy of any state since 2014.

Officials delay alcohol ban on rivers

Federal officials are delaying a ban on alcoholic beverages along sections of three rivers in the Huron-Manistee National Forests in northern Michigan, the Associated Press reported. The prohibition will be put off for at least a year, Huron-Manistee National Forests Supervisor Leslie Auriemmo

CALENDAR

HURON-MANISTEE NATIONAL FORESTS

A river alcohol ban by the Huron-Manistee National Forests that’s now been delayed would have included a section of the Pine River.

said Tuesday. A group representing small businesses, local governments and private citizens will develop a plan for restoring public safety on the rivers, Auriemmo said. The alcohol ban may be imposed in 2020 if conditions don’t improve. Officials announced the ban Feb. 6, saying it would protect natural resources and public safety on sections of the Au Sable, Manistee and Pine rivers. “The closure order is intended to address persistent public safety issues and protect natural resources on rivers of outstanding recreational value,” Auriemmo said then in a news release. “Our goal is to create a safer, more sustainable, and more enjoyable experience for the thousands of visitors who recreate on our National Wild and Scenic Rivers each year.”

Violations would be punishable by fines of up to $5,000 and imprisonment of up to six months.

Snyder pardoned MICPA exec as term neared end

In his final days in office, Gov. Rick Snyder wiped out the felony drunken-driving conviction of a man who pleaded for a pardon so he could seek a lucrative promotion as the next president of the Michigan Association of Certified Public Accountants, the Associated Press reported. Jim Jagger’s application for a pardon sailed swiftly: He filed in late October, got a hearing in December and won Snyder’s blessing before Christmas, despite opposition from the Oakland County prosecutor, who vigorously claimed it was “special treatment” for a

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“career drunk driver,” according to records obtained by the Associated Press. “The average Joe out there is not going to get a pardon” for the same crime, prosecutor Jessica Cooper told the AP. “Nor should they.” During Snyder’s eight years as governor, people filed more than 4,000 applications for a pardon or commutation, which shortens a prison sentence. He granted fewer than 100. It’s not publicly known why the governor or his aides were so interested in helping Jagger, who makes $144,000 a year as a vice president at the CPA group. But with Snyder’s term nearing an end, his staff put the case “at the top of the stack and said, ‘Process this one,’” said Chris Gautz, a spokesman at the Corrections Department, where pardon files are screened. Jagger, 54, of Royal Oak, had four drunken-driving convictions from 1989 to 2007. It’s typically a misdemeanor, but he faced a felony charge after the last arrest because of his repeat offenses. No one was injured in the incidents. Judge Michael Warren sentenced him to 135 days in jail, calling Jagger a “danger to the public.”

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GETTING ON TRACK Lexus Velodrome in Detroit seeks sustainability By Kurt Nagl knagl@crain.com

When the Lexus Velodrome in Detroit opened a year ago, it grabbed headlines for being just the second indoor cycle-racing track in the country. Now, it’s forging a path forward with more than just bikes. In its inaugural year, it has staged top-level races and attracted talent and attention from around the world. Dale Hughes — keeper of the huge white dome at the corner of I-75 and Mack Avenue — is bullish about establishing the venue as both the headquarters of world-class cycle racing and the coolest community center in the area, just as he envisioned it when he dreamt it up. The velodrome designer-turned

“You have hopes and dreams, then you have what you consider the reality. We’ve done more than what we actually thought was gonna be our first year.” Dale Hughes

businessman has learned the difference between chasing dreams and paying bills. Operating a $4.5 million, 64,000-square-foot venue solely with the support of niche bicycle racing fans isn’t financially viable. “You have hopes and dreams, then you have what you consider the reality,” said Hughes, 69, of Rochester

Hills, who is executive director of the Detroit Fitness Foundation, the nonprofit operator of the velodrome. “We’ve done more than what we actually thought was gonna be our first year.” The reality is that from a financial standpoint, the velodrome fell short of expectations. The goal was $1 mil-

HEALTH CARE

jgreene@crain.com

Doctors and dentists don’t have a grand tradition of working closely together. But soon, medical and dental students in metro Detroit will be studying together — learning how to coordinate care and collaborate to prevent chronic diseases in the body and mouth — as a partnership begins in March between Oakland University William Beaumont School of Medicine and Detroit Mercy School of Dentistry. Such programs offer a step forward in a world where payments will increasingly depend on outcomes — and doctors and dentists can help each other create better ones. Led by deans Robert Folberg, M.D., of OU and Mert Aksu, D.D.S.,

The Lexus Velodrome in Detroit features several races each month where cyclists compete on a track one-tenth of a mile long. LEXUS VELODROME

ers from around the world, Hughes said. “I think I can get a lot of worldwide exposure for Detroit,” Hughes said, adding that 60 percent of those viewing races online are from outside the U.S. Hughes has aggressive plans to double revenue and attendance in 2019, add sponsors, host larger events and ultimately make the velodrome sustainable. That means marketing it as a venue not just for cycling, but also for corporate events, private parties and practically any other sport or activity. As a cycle-racing venue, the Detroit velodrome has little competition. The outdoor velodrome at Bloomer Park, built in Rochester Hills in 2002, is the only other functioning velodrome in the state. SEE VELODROME, PAGE 24

HEALTH CARE

OU, Detroit Mercy work to get doctors, dentists on same page By Jay Greene

lion in revenue. It achieved around $900,000, with operating costs totaling $950,000. So, it fell about $50,000 in the red — not ideal, but not unusual for a new business, especially as unique as a velodrome. By other important measures — including attendance, community support and international interest — the enterprise has shown big potential. An estimated 35,000 people went through the door last year. Athletes traveled from as far away as Germany and New Zealand to compete at the Detroit venue. Anywhere from 500-600 spectators showed up to monthly championship races at the 980-capacity venue, nearly a dozen races were aired on Detroit Public Television, and perhaps most impressively, each livestream of those races averaged 10,000-15,000 view-

of UDM, the program will bring together about 144 second-year medical and dental students in an all-day course where both will share case studies in a classroom setting. In 2020, the then third-year students are expected to collaborate at Detroit Mercy clinics and federally qualified health centers. Historically, medical and dental schools have had separate training programs, and there are few examples of teaching the benefits of working together to improve care. However, Affordable Care Act provisions have encouraged collaborations between health sciences to aspire to health care’s “triple aim” of improving patient satisfaction, outcomes and quality. “I’ve been at two universities that had dental programs that never inte-

Consumer complaints pile up for LightRx medical spa By Jay Greene jgreene@crain.com

Bob Folberg: Two programs should communicate.

Mert Aksu: Wanted a partnership.

Need to know Medical and dental students from Oakland University-William Beaumont medical school and Detroit Mercy dental school to collaborate on interprofessional courses 

Unusual joint classes designed to expose the two health disciplines to the benefits of working together for patient health 

grated (with medical),” said Folberg, adding that one was the University of Iowa that has a medical and dental school across the street from one another. “They didn’t know they co-existed.” SEE PARTNERS, PAGE 25

LightRx Face and Body, a Farmington Hills-based medical spa that offers laser fat treatments and other nonsurgical procedures, is closing locations and racking up consumer complaints to the Michigan Attorney General Dana Nessel’s office and at the Eastern Michigan Better Business Bureau. LightRx — headed by Richard Morgan, the former president of American Laser Centers and American Laser Skincare, which filed for bankruptcy in 2011 and 2014, respectively — also is closing offices in Michigan and some of the other 21 states where it does business. “This (AG) office is concerned about LightRx and its responsiveness to consumer complaints,” Kelly Rossman-McKinney, a spokesperson for the attorney general’s office, said in an email to Crain’s. “We are in the process of interviewing consumers that

Need to know

 LightRx closing body and face care clinic offices in Michigan  Michigan AG’s office has received 10 complaints from consumers and launched investigation  Owner and President Richard Morgan also was involved in American Laser Centers and American Laser Skincare, which went bankrupt

file complaints with this office, and encourage anyone who believes they have not been treated lawfully to file a consumer complaint on our website.” Neither Morgan nor his representatives responded to interview requests. In a Dec. 10 letter to Morgan, the Michigan AG’s office under former Attorney General Bill Schuette asked him to respond to complaints filed against his company and share documents with the AG to aid its investigation. SEE LIGHTRX, PAGE 26

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Plymouth Township-based Rivian lands $700 million investment By Michael Wayland mwayland@crain.com

and Dustin Walsh dwalsh@crain.com

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A $700 million investment led by Amazon Inc. is likely to bring growth to Plymouth Township’s Rivian Automotive LLC. The electric vehicle startup Rivian Automotive LLC secured the investment Friday following reports of the companies as well as Detroit-based General Motors Co. being in talks earlier in the week. A Rivian spokesman said Amazon is one of two investors in the round, which does not include GM. The other is the company’s long-term investment partner ALJ. “This investment is an important milestone for Rivian and the shift to sustainable mobility,” Rivian CEO RJ Scaringe said in a news release. “Beyond simply eliminating compromises that exist around performance, capability and efficiency, we are working to drive innovation across the entire customer experience.” Just because GM is not a part of this round does not mean the automaker is not in talks to invest in Rivian. Earlier in the week, Reuters first reported that Amazon and GM were in talks to make investments in the company that could value the company at between $1 billion and $2 billion. Rivian declined to comment on the breakdown of the $700 million investment, nor would it comment the company’s valuation. The startup employs 350 at 13250 Haggerty Road southwest of the I-96, I-275, M-14 corridor in Plymouth Township.

Glenn Stevens, executive director of Detroit-based MichAuto, an advocacy group for the state’s auto industry, said the investment is validation that automotive technology startups are successful in Michigan. “The message is very clear that the Detroit region not only has the experience and know-how to engineer and manufacture vehicles, but it also demonstrates that next-generation sustainable mobility is being conceptualized and designed here,” Stevens told Crain’s via email. “As the auto and tech industries continue to converge, Detroit is playing a leadership role.” Scaringe, speaking last month at the Automotive News World Congress in Detroit, discussed partnering with other brands and potentially licensing technologies to other companies in 2019. Rivian plans to produce vehicles at the former Mitsubishi Motors Corp. plant in Normal, Ill., it acquired in 2017. Deliveries of the R1T pickup are expected to begin late 2020, followed by the SUV and four additional products through 2025. Scaringe previously said all the planned products share the same battery and flat “skateboard” architecture. GM executives, including CEO Mary Barra, have teased the idea of an all-electric pickup for the automaker. However, the company has never put a time frame on such a project. GM, following reports of the talks, said it admired Rivian’s “contribution to a future of zero emissions and an all-electric future.” An all-electric future is part of Barra’s “Triple Zero” vision: zero crashes, zero emissions and zero congestion.

Morgan Stanley analyst Adam Jonas wrote in a note this week that the next and potentially imminent major product frontier for EVs will be the highly lucrative and U.S.-dominated pickup market. “A culmination of battery cost reduction, architecture, duty cycle, and price point — e-pickups are an important area of investor focus,” he said.

Amazon’s interest

The benefit for a company such as Amazon, Jonas said, includes using the technology to shape electric delivery vehicles to support its own logistics efforts and tap into the $900 billion logistics industry. Jeff Wilke, who runs Amazon’s worldwide consumer division, said the tech giant is “thrilled” to invest in Rivian. “We’re inspired by Rivian’s vision for the future of electric transportation,” he said in the release. “RJ has built an impressive organization, with a product portfolio and technology to match.” The reported discussions between Rivian and GM follow Jim Farley, Ford Motor Co.’s president of global markets, reconfirming that the company would eventually be “electrifying the F series, both battery-electric and hybrid.” He declined to provide a time frame or specify whether Ford would offer an electric F-150, Super Duty or both. Ford Executive Chairman Bill Ford Jr. confirmed last year that Ford planned an F-series EV, at a celebration marking 100 years of the Rouge complex, where the F-150 is assembled. Michael Wayland is a reporter for Automotive News.

Tenneco’s post-split move to Northville Township gives region new HQ By Dustin Walsh dwalsh@crain.com

Following a planned split into two companies in the second half of this year, powertrain supplier Tenneco Inc. will move its headquarters to Northville Township, giving metro Detroit a new locally based publicly traded company with annual revenue of more than $10 billion. The spinoff, scheduled for the second half of 2019, will complete a strategy unveiled in April when Tenneco said it would purchase Southfield-based Federal-Mogul in a $5.4 billion deal. The combined company is pairing matching divisions from the legacy companies, then separating along those lines. Driv Inc. (pronounced “Drive”) will make aftermarket parts, shock absorbers, suspension systems and brake parts and will remain in Tenneco’s current location in Lake Forest, Ill. Tenneco will move to a previously announced sales center it is building in Northville Township. The $23 million, 100,000-square-foot location opened late last year at 15701 Technology Drive near Five Mile and Beck roads. The build was supported by a $750,000 performance-based grant from the Michigan Strategic Fund on the anticipation that it would create 100 jobs over three to five years. Tenneco will also continue to operate locations in Southfield, Plymouth

TENNECO

Tenneco is building a customer center in Northville Township, shown here in a rendering.

Township, Ann Arbor, Lansing, Grass Lake, Marshall, Litchfield, Greenville and Sparta, Bill Dawson, Tenneco’s executive director of communications, confirmed to Crain’s via email. Driv will operate locations in Southfield, Plymouth Township and Monroe. Tenneco has two chief executives in preparation for the breakup. Co-CEO Brian Kesseler will head Driv and coCEO Roger Wood will lead the new Tenneco. Driv will operate as a catalog of wellknown aftermarket brand names in markets around the world. Five of the brands are more than a century old. The product lines include Monroe, Champion, Öhlins, Moog, Walker, FelPro, Wagner, Ferodo, Thrush, National,

Sealed Power and Axios. The combined stable of brands and business lines represents annual sales of about $6.4 billion, Kesseler told Automotive News. He said the volume is 56 percent aftermarket business and 44 percent original equipment sales to automakers. Tenneco will manufacture chiefly powertrain and emissions products with revenue of approximately $10.7 billion. That would have ranked it as the eighth-largest company in Southeast Michigan by revenue on Crain’s most recent list of the largest publicly traded companies. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

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Capital for minority, women entrepreneurs increases but still a struggle to access By Sherri Welch

Need to know

The amount of capital available to aspiring entrepreneurs in Detroit, Hamtramck and Highland Park has risen in recent years, but according to a new report commissioned by the New Economy Initiative, there are still barriers to accessing it. Jointly funded by JPMorgan Chase & Co and NEI and completed by the Milwaukee-based Eckblad Group LLC, the “Capital Access” report examines the landscape to support underserved small business owners in the three cities. There is capital available for new and existing entrepreneurs with better access in metro Detroit than in Hamtramck or Highland Park, based on interviews with capital providers and business support organizations, according to the report. But underserved entrepreneurs of color, immigrants and women in the three cities still face barriers. The report identified several: J Lack of a holistic, collaborative system that helps educate underserved entrepreneurs on lending requirements, lending and business support options, helping to eliminate confusion and competition among lenders and providers J The need for more mentors and coaching to help entrepreneurs build financial and small business management skills, navigate lending requirements and options and build trust in systems not originally built for them J Institutional bias in the lending system that needs to be identified and rooted out The report isn’t a tactical map, said Don Jones, associate director of the New Economy Initiative. But by providing a picture of the current landscape, it presents opportunities to address barriers. NEI plans to take the report to banks to discuss the barriers identified and how to make loans and grants more accessible to underserved entrepreneurs.

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By the numbers The Capital Access report doesn’t quantify the amount of capital that’s been made available for loans and grants to underserved entrepreneurs in Detroit and the other two cities. But it’s clearly increased, Jones said, with support from groups including NEI, W.K. Kellogg Foundation, the Detroit Development Fund, JPMorgan Chase, Michigan Women Forward, ProsperUs and others. Loans from banks to small businesses in Detroit reported under the Community Reinvestment Act dropped 60 percent between 2008 and 2010, according to the report. Lending returned to pre-recession levels in 2015, but accessible capital remains elusive, particularly at the microloan level of loans of $50,000 or less. Two organizations — ProsperUS and Michigan Women Forward — are the primary microloan providers for entrepreneurs in the Detroit area, but the current capacity and reach of these organizations is limited, ac-

JJLoan capital for underserved entrepre-

JJBut new report shines light on continued barriers to accessing it JJNew Economy Initiative to use report to spur conversations about system-level change

cording to the report. Michigan Women Forward, which offers microloans between $2,500 and $50,000, disbursed 17 loans in Detroit in 2017. ProsperUS offers microloans of $5,000-$15,000 for startups and $25,000 for existing businesses. It also disbursed 17 loans to Detroit-area entrepreneurs in 2017. Two other groups — Opportunity Resource Fund, a statewide, community development financial institution that provides affordable loans to underserved people and communities, and CEED Lending, a Livonia-based, U.S. Small Business Association microlender — also offer microloans but have been less active in this area, the report’s authors said. Combined, all of those lenders are making $2.5 million-$3 million in microloans in Detroit, Hamtramck and Highland Park each year, Jones said.

Strategies Still, there’s a need to help small businesses learn how to access and secure those loans, Jones said. Right now, much of the onus is on the borrower to navigate the various lenders in the community, Jones said, but “understanding where to go and for what isn’t clear.” That’s something that could be addressed, Jones said, “by creating a more rational tool in the market … and being able to connect them to the appropriate loan fund that addresses their particular capital need.” That may mean development of an online portal or another system that builds on the Capital Readiness Checklist, developed by a group of neighborhood business advocates led by NEI, he said. Released last year, the checklist educates small businesses in the “five Cs of creditworthiness” and helps them determine their readiness to take on debt. With its focus on underserved populations, philanthropy could play a role in developing such a system, as could lenders like JP Morgan Chase, which is investing $150 million in Detroit, and other banks that have that have philanthropic dollars to invest, too, Jones said. For the banks, there’s a built-in incentive: They’d be creating future customers. It’s really about addressing how capital providers and business support organizations work together to support entrepreneurs, said Barbara Eckblad, principal of the report’s author, The Eckblad Group. “We would maximize borrowers’ ability to access more capital if lenders cooperate more and compete less.” There is an underlying competition among lenders and business support organizations that form relationships with entrepreneurs and may feel possessive of them, she said.

“The best way to actualize all the resources that Detroit has for underserved entrepreneurs is to minimize duplication of effort by business support organizations and lenders so that you don’t have more than one business support organization focusing on, for example, startup food entrepreneurs,” Eckblad said. “If organizations could all work together to figure out who is good at which pieces of ... entrepreneurial training or lending ... and then stick to their knitting,” it will be less confusing for entrepreneurs, she said. At the same time, any system developed to help small businesses navigate the lending environment has to be connected to a coach or mentor, Jones said. “Underserved entrepreneurs need support building financial and small business management skills, navigating the capital ecosystem and building trust in systems that were not originally built for them,” Eckblad Group said in the report. With that sort of assistance, Detroit entrepreneurs such as Sonja McCoy, owner of Glass Block Express in Detroit, have had success in securing microloan funding and positioning their company for growth. McCoy heard about Detroit-based ProsperUs from entrepreneurs she knew who’d been through its training program. So she followed their lead to secure a microloan to fund inventory for residential and commercial glass block window construction and the purchase of a building to house the 1-year-old business. She learned how to write a business plan and pitch to lenders and how to determine how much money the company needed and could pay back, she said. ProsperUs “made the process really smooth,” McCoy said, and helped more firmly establish Glass Block Express by spurring her to research competitors to understand market demand and pricing to make sure it was on point. Without ProsperUs, “I think it would have taken a much longer journey ... (and) a lot more research,” McCoy said. “I know it would have been far more challenging.” Last week, McCoy and Glass Block Express secured a $20,000 microloan from ProsperUs after pitching to several lenders. With the loan, the fledgling company plans to buy a building on Linwood near the Davison freeway. By June it expects to hire its first two employees, McCoy, 47, said. “We didn’t know the ropes until we took the (ProsperUs) class. That gave us the information we needed to navigate the microlending process.” Banks can benefit from better understanding the needs and barriers underserved small businesses and entrepreneurs have and how they’ve built financial credibility, Jones said, as they consider underserved entrepreneurs for bigger loans. “It’s helping to build that continuum of capital from small up to larger loan dollars,” Jones said. Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

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SPECIAL REPORT: WOMEN IN LEADERSHIP

Changing the conversation

Detroit Land Bank Authority Executive Director Saskia Thompson on leading through controversy By Rachelle Damico

Special to Crain's Detroit Business

Saskia Thompson leads an organization everyone has an opinion about. She’s the executive director of the Detroit Land Bank Authority, which owns about 27,000 Detroit structures — mostly residential properties. The public agency sells properties at auction and on the traditional real estate market and has demolished more than 10,000 structures since Mayor Mike Duggan took office in 2014. Thompson came to the DLBA in 2017, amid a federal investigation into the agency that had begun a year earlier into its demolition program, which is funded in part by federal dollars. The agency has faced scrutiny for its evaluation of demolition bids, its billing of federal dollars and how its contractors have handled hazardous materials abatement and fill dirt. The investigation is ongoing. Thompson has brought nearly 20 years of experience in municipal government to bear in righting the ship. She worked for Mayor Dennis Archer’s administration as an assistant for public policy projects from 20002001. After that, Thompson worked for the city of Charlotte, N.C. for about nine years before moving to Philadelphia, Pa. for a position as the city’s deputy finance director and executive director of the office of prop-

erty data. She left Philadelphia to join the DLBA, where she leads the agency’s staff of 150. This interview has been edited and condensed. How did your upbringing influence your career?

My mother is a lawyer and spent her career working in downtown Detroit fighting for pension, Social Security and workers’ compensation issues. She later focused on employment discrimination. My father is a professor and was a union organizer for a long time. It wouldn’t fly if I told them that I was going to work for corporate America helping other people make money. The overarching mantra in my family growing up was, whatever you do, you have to give back in some way. Detroit shaped me as much as my family did. I went to Detroit Public Schools (Thompson graduated from Cass Technical High School) and took Detroit transportation. When people say there’s two Detroits and people are left out of this new generation, I don’t debunk that. Downtown today doesn’t look like how it did when I previously worked here. However, we can still make this a city that everyone can participate in. We as Detroiters get to pick what we are going to be going forward and I think because I’m from here, I understand that.

Saskia Thompson, director of the Detroit Land Bank Authority, at one of their Rehabbed & Ready homes in Detroit’s Grandmont/Rosedale neighborhood. ERIN KIRKLAND FOR CRAIN’S

Why did you move back to Detroit? How have you seen the city change?

When I worked for Dennis Archer there were a lot of exciting things going on in Detroit in the late ‘90s and early 2000s. We were building Campus Martius, General Motors was moving into the Renaissance Center and the Super Bowl was going to be held in Detroit. You had hope and felt like a lot of positive things were going on. When I moved away from Detroit in 2002, Detroit was struggling with a shrinking economy. My frame of reference at the time was so specific to Detroit that it was hard to see how other cities were struggling with problems. I remember doing police ride-alongs when I was working in Charlotte and wondering where all the bad neighborhoods were. I don’t feel like I actively decided to move back to Detroit. I wasn’t really ready to leave Philadelphia, because my daughter was about to be a senior in high school and I was not looking to uproot her. However, the more I looked at this job, I decided it was the right move for me. I came to the conclusion that being at the land bank at this point in time was a unique opportunity and that I was uniquely qualified to be the person who took over. I am a Detroiter and I understand the factors of how we got here and what that actually means to people. What do you feel are some common misconceptions about the land bank?

The misconception that frustrates me the most is that we’re mismanaging demolition. With all the negative press the land bank received about demolition, there was no focus on all

“When we demolish a house we are eliminating a noticeable blight on the neighborhood, as vacant houses attract all sorts of crime.” Saskia Thompson

the other positive work the land bank was and still is doing. Even when I was doing my due diligence about coming here, people would say, “You don’t want to take over the land bank. Everybody there is terrible and you’ve got to clean house.” When I got here I learned that’s clearly not true. This organization is full of smart, talented, dedicated people who are committed to making positive changes. Most people think that demolition is most of our business, but it’s not. Community members have every right to be frustrated, but they’re not worried about our demolition programs. They’re worried about the vacant houses on their block. If anything, they want us to be doing demolitions faster. There’ve been calls from people telling us that we shouldn’t be doing any demolition at all, but I guarantee that the people living in the neighborhoods where we made a real impact by tearing down some of these vacant homes feel differently about that. When we demolish a house we are eliminating a noticeable blight on the neighborhood, as vacant houses attract all sorts of crime.

How did you work to change that narrative?

When I first got here, I felt strongly that we needed to be in the community more than we were. I changed the name of the public affairs department to the community affairs department. That may seem like a small thing, but I wanted us to be in the neighborhoods talking to people and making our programs accessible to them, not requiring people to come downtown to talk to us. Our community affairs staff now holds office hours in every district in the city. I felt that we couldn’t change the negative perception in the media until we are actually talking to the people who are living, breathing and benefiting from our programs every day, and the positive stories will follow. Almost 18 months later, I think that was the right decision. We still get a ton of phone calls every month, but not every call is negative. People are asking, “How can I buy this home? How can I tap into this program?” What do you wish people focused on?

I am most proud of the fact that every time we sell a house, the buyer is required to fix the condition of their home. It’s a condition of the sale. You can’t buy a house from the land bank and sit on it with no investment. We are always working towards moving through our inventory as quickly as we can. Every time we successfully sell a house and somebody renovates it, that’s another individual or family of people who are living here, shopping here, working here and bringing back that sense of community that we’ve lost in a lot of places because so many homes were abandoned for so long.

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OPINION COMMENTARY

LETTERS

A new higher-ed goal — and a clearer message

Improve access to youth behavioral health care

“If Michigan’s residents, education systems and governments can work together to increase the share of the state's population with credentials of value, Michigan will be a vanguard state for economic vitality and quality of life.” That was one conclusion from a 143page report authored by the commission that then-Gov. Jennifer Granholm empaneled in 2004 to lay out a strategy for Michigan to double the percentage of adults with post-secondary credentials within a decade. The commission chaired by former Lt. Gov. John Cherry called for a sweeping new approach to developing the Michigan’s talent pool — from improving degree completion rates to breaking down the silos between the hundreds of K-12 school districts, 28 community colleges, 15 public universities and 25 private colleges. For the most part, the Cherry commission’s primary strategies were never fully realized — for a whole bunch of economic and political reasons. After the report was released, a multimillion-dollar gubernatorial election ensued, Michigan’s decade-long single-state recession ballooned into a near-depression, the national economy collapsed, two of the three automakers went bankrupt, people with bachelor’s degrees left the state by the moving van load, higher-education funding got repeatedly slashed — and we have spent the past decade crawling out of the hole. Here we are nearly 15 years later, with a new Democratic governor who is, once again, calling for a focused approach to boosting the number of adults with college degrees or high-quality certificates. Gov. Gretchen Whitmer’s goal of having a 60 percent higher-education attainment rate by 2030 is actually below the 64 percent rate Granholm challenged leaders in education, philanthropy, business and government to achieve by 2014. As of 2017, 45 percent of Michigan’s adult population had a college degree or high-quality credential, ranking the Great Lakes State at 32nd in the nation,

CHAD LIVENGOOD clivengood@crain.com

according to the Lumina Foundation. “Had Michigan been able to implement some of the 2004 Cherry commission goals we would have a better-educated, more competitive and a more prosperous workforce today,” said Richard Rassel, chairman of the Butzel Long PC law firm and co-chair of the Detroit Regional Chamber’s Detroit Drives Degrees initiative. To reach the 60 percent goal by the end of the next decade, Whitmer proposes establishing a new state scholarship that would make two years of community college free and allow the scholarship to be applied to the first two years of a four-year education at not-for-profit universities. She also wants to reconnect adults over age 25 with educational opportunities to earn technical certificates or associate’s degrees that also would be paid for by taxpayers. “If you’re willing to put in the work, you will have a path to succeed,” Whitmer said Feb. 12 in her first State of the State address. Whitmer’s proposed Michigan Reconnect program targets an entire generation of under-educated adults in their 30s, 40s and even their early 50s who have some college credentials, but never completed a degree or certificate program. In the seven counties of Southeast Michigan, this subset of the potential workforce amounts to 691,000 adults, or nearly 7 percent of the state’s population, said Greg Handel, vice president of education and talent programs for the Detroit Regional Chamber. Southeast Michigan is 570,000 degrees or credentials short of meeting

the Detroit chamber’s own goal of having 60 percent of adults in the region with a post-secondary credential by 2030. “Southeast Michigan has a large pool of people with some post-secondary education, but no credential,” Handel said. Statewide, an outsized portion of Michigan’s adult population lacks a higher-education credential of any sort. Michigan ranks fifth in the nation in the percentage of adults — 20 percent — with just a high school diploma, said John Austin, director of the Michigan Economic Center and past adviser to the Cherry commission. Whitmer’s Michigan Reconnect program offers a chance to “upskill” these adults who have 10 to 30 more working years ahead of them, Austin said. “If we’re serious about reaching the (60 percent) goal, with declining school-age populations, the best way we’re going to reach the goal is to help the adults who are already out there get a job,” said Austin, a former president of the State Board of Education. Like any major shift in public policy, there are a lot of details to flesh out and challenges to making this goal a reality. The first one, of course, is cost and how to pay for it. During the campaign, Whitmer’s camp estimated both programs would cost a combined $100 million. That won’t be easy to come up with in a state budget under increasing strain after nearly two decades of stagnant growth. Whitmer will detail the costs of these two programs in her budget presentation to lawmakers on March 5. “That’s where the rubber hits the road,” said Daniel Hurley, CEO of the Michigan Association of State Universities. The Cherry commission placed an emphasis on state taxpayer investment in scholarships that drove the desired outcome of having a better-skilled and educated workforce. “Existing scholarship programs, including Merit scholarships, must continue to give access to higher education

but also should be revised to create powerful student incentives for successful completion of a degree if Michigan is to maximize the economic benefit it reaps from its investment in higher education,” the Cherry commission wrote. Whitmer’s challenge is not just getting the Legislature to agree to a new program during an economic boom time, but getting them to maintain it when the next recession hits, Cherry said. The Michigan Merit Award scholarship was later replaced by the Michigan Promise scholarship, which got axed by lawmakers in the budget cuts during the recession. “That was, unfortunately, Democrats (in the House) that unfunded it,” Cherry said. The second challenge to meeting Whitmer’s new higher-ed attainment goal is public messaging. “There’s a lot of messengers, but she is the most important messenger in the state,” Hurley said. Granholm’s goal of doubling the percentage of adults with a degree or credential was undermined by “a messaging problem” that the goal was solely about doubling the number of bachelor’s degrees, Austin said. “It’s not college vs. career technical and skilled trades,” Austin said. “It’s we need more of all.” Cherry said Whitmer has better articulated how skilled trades and technical certificates should be part of the pool of post-secondary credentials to help Michigan achieve this new goal. “She talked about that in clearer terms than we did and said that was legitimate and that it needed support,” Cherry said. Handel said a “multi-dimensional” approach is needed to not only get high school graduates and adults enrolled in college or certificate programs, but also guide them to completion. “There’s no simple solutions here," he said.

University of Michigan, after all). The list of successful people with ties to metro Detroit is truly amazing. Thankfully, this region has also retained a lot of talent, folks who never left. We’re better off because of them. Last week, we said goodbye to John Dingell. The Dearborn church was beautiful, creating a dramatic backdrop for the thousands of fans, friends and supporters who came to pay their respects. The funeral drew not only local VIPs but high-ranking politicians in Washington, including former Vice President Joe Biden. Congressman Dingell served our country — and Southeast Michigan — for more than five decades. He was able to accomplish things that took great political and diplomatic skills, working across the

aisle. He had a strong work ethic, too. Last week was also the second anniversary of the passing of Mike Ilitch, another Detroit icon who worked hard and built a business empire and sports dynasty. His moving memorial service brought out thousands of fans and mourners and included warm remarks from President George W. Bush. Last year, we lost yet another icon who long graced metro Detroit: Aretha Franklin. She will be remembered as one of the greatest singers of all time and selected by President Barack Obama to sing at his 2009 inauguration. She earned the title “Queen of Soul.” Whether people stay or leave, there’s something about Detroit that people carry with them in their hearts. The whole community benefits.

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

It all starts in Detroit T

his fall, we will host the sixth iteration of The Detroit Homecoming, produced by Crain’s Detroit Business. As in past years, I suspect we’ll have at least 200 “expats” come “home” to Detroit for a couple of days to see firsthand how the city is evolving. The event has been tremendously successful in bringing attention and investment back to Detroit. The investment number — planned or executed projects — is well north of $500 million. It’s amazing to consider the number of successful people who have ties to Detroit but went off to realize their business and career success somewhere else. We’ve had some very successful expats speak at Homecoming over the years, a list that includes philanthropist Steve Ballmer, develop-

KC CRAIN Publisher

er and sports titan Stephen Ross, “Hamilton” producer Jeffrey Seller, NBA alum Jalen Rose and actress Lily Tomlin. And there are still people on our invite list we’d love to persuade to attend, like Madonna, Keegan-Michael Key and Google’s Larry Page (he went to

To the Editor: Growing up is hard enough. Add the burden of mental health needs into the mix, and it can feel impossible. Far too many children and adolescents in Michigan lack access to behavioral health services, despite soaring demand. Our current system is failing to meet the needs of children with mental health disorders. Although one in every five children suffers from a diagnosable behavioral health disorder, only 20 percent of affected children receive the treatment needed. Half of all chronic mental illness begins by age 14; three-quarters by age 24. Despite effective treatments being available, there are often long delays — sometimes decades — between the first appearance of symptoms and when patients get help. Behavioral illnesses are like any other disease; the earlier they are identified and treated, the better the outcomes. Across the United States, there are serious shortages of pediatric behavioral health providers. This shortage leads to decreased utilization of needed treatment, long wait times and long distances traveled to care. Mental health is a critical part of a daily healthy lifestyle, and it is equally as important as one’s physical health. Children and families that are underinsured continue to struggle with great barriers to accessing care. In particular, toxic stress is a health crisis for children in our community and dramatically impacts their future health, education and lifespan. Toxic stress is the normal response of the body and brain to adverse childhood experiences. Youth exposed to trauma experience more learning and academic difficulties as well as behavioral problems. Children are failing in the classroom as a result, and schools are ill-prepared to deal with it. Addressing access to care for children and adolescents with mental health illnesses remains a challenge. To help make Michigan a leader in this area, we are helping to launch the “Michigan Advocates for Youth Behavioral Health,” a coalition of organizations and advocates determined to end stigma, change attitudes toward mental illness and break down barriers to quality behavioral health care. We know that when Michigan becomes better educated about these health needs, attitudes change. With quality care and support, children and teens with behavioral health challenges can lead hopeful and fulfilling lives. Our first project will be to convene the 2019 Child & Adolescent Behavioral Health Summit in May to help educate parents, educators and providers about these issues. We will update the community on the progress we begin there. Lawrence J. Burns President and CEO Children's Hospital of Michigan Foundation

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

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Grand Rapids this year will become the second city in Michigan to get an autonomous shuttle fleet from May Mobility Inc.

May Mobility secures $22M investment amid expansion By Dustin Walsh dwalsh@crain.com

Ann Arbor autonomous shuttle service May Mobility Inc. secured an additional $22 million in funding led by New York investment firms. New York’s Millennium New Horizons and Cyprus Capital Partners LP led the Series A funding round and were joined by LG Technology Ventures, Thayer Ventures and its previous investors BMW i Ventures, General Motors’ Maven Ventures, Toyota AI Ventures and Y Combinator. BMW, GM, Toyota and others provided May Mobility with $11.5 million in seed capital in 2018. May Mobility, which launched self-driving city shuttles in Detroit and Columbus, Ohio, plans to use the new funding to expand its engineering and operations groups as it prepares to offer services in new cit-

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JJFunding led by N.Y. investment firms JJProceeds to be used to expand employment JJPlans to launch services in Grand Rapids and Providence, R.I., this year

ies, the company said in a press release. The company currently employs approximately 50 people. It plans to launch services in Grand Rapids and Providence, R.I., in 2019. May Mobility will deploy four of its shuttles in Grand Rapids, Crain’s reported in September. The shuttles will run a three-mile loop, connecting riders to downtown jobs and businesses. In Detroit, May Mobility teamed with Bedrock LLC in Detroit to be-

come the first company to launch self-driving vehicles on public roads in the city last summer. The fleet carries Bedrock employees to and from offices and parking garages. “Simply put, we believe that the future of urban transportation is shared, electric and autonomous,” Benjamin Birnbaum, co-founder of Repower Group, a Cyrus Capital affiliate, said in a press release. “May Mobility has a uniquely talented team, a scalable operating model and is already solving mission critical challenges for its customer base that meet this vision. We believe that May Mobility’s impact on accessibility, quality and cost of urban transportation will be transformative for the way that people move around cities.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

Beringea LLC leads $7 million investment in Cleveland firm By Tom Henderson thenderson@crain.com

Farmington Hills-based Beringea LLC announced Wednesday that it has led a $7 million Series B investment in Cleveland-based Complion, which provides electronic regulatory compliance solutions for clinical research sites. Rick Arlow, Complion’s founder and CEO, said the funding will help the company expand the tools available for customers and help it maintain its status as the market leader in e-regulatory compliance. “We are passionate about ensuring the highest quality compliance for leading clinical research sites facing increasingly burdensome regulations,” said Arlow in a press release.

“The whole team here at Complion is appreciative of the continued support and confidence of our investors as we seek to transform regulatory operations in clinical research sites.” Complion’s platform manages a research sites’ clinical-trial documentation and makes sure everyone in an organization follows standard procedures while providing administrators visibility into compliance. The platform allows for a site to be audit-ready at any moment. In addition to compliance and document management for clinical research sites, Complion offers document management for health systems, academic medical centers and cancer centers. It was founded in 2013.

“We believe that Complion’s leading e-regulatory solution provides the efficient centralized monitoring that high performing research sites and their sponsors need,” said William Blake, a vice president at Beringea. “We are confident that Complion’s experience as the first mover in the industry and impressive management team will continue to propel the company forward.” Beringea was not a previous investor in Complion. Both Beringea LLC and the UKbased Beringea LLP provide equity and/or mezzanine debt to companies in a range of sectors, including health care, technology, software as a service, media, clean technology and consumer products.

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CRAIN’S 2019

NOTABLE WOMEN IN REAL ESTATE

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

Crain’s Notable Women in Real Estate have brokered some of the region’s biggest deals, financed major projects, grown portfolios and changed the face of neighborhoods and communities across metro Detroit. They are designers, architects, construction managers, teachers and unquestionably leaders in what has historically been a male-dominated field. For more about how we selected this year’s notable women, see Page 18.

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

CRAIN’S 2019 NOTABLE WOMEN IN REAL ESTATE ABIR ALI

REBECCA BINNO SAVAGE

TERESA BRUCE

 Director of Design and Culture, The Platform, Detroit

 Historic Preservation Lead, Kraemer Design Group, Detroit

 Construction Manager, General Development Co. LLC, Southfield

 Pre

 Education: Master of Architecture, University of Toronto

 Education: Master of Science in Historic Preservation, Columbia

 Education: Bachelor of Science in Architecture, University of Michigan

 Ed

Teresa Bruce’s greatest strength is balance: balancing the office, field, municipalities, clients and trades. She started as an intern at General Development in 2011. Two years later, Bruce was promoted to construction manager. Bruce, 30, has the business acumen to manage costs and resolve issues with grace. “She has a wide array of knowledge and experience on every aspect of construction ranging from site plan approval facilitation to working through complex building challenges in the field. We have found that Teresa is effective as a leader because she is detail-oriented and genuinely has the best interests of the City of Auburn Hills, as well as her company and her clients in mind,” said Mayor Kevin McDaniel, City of Auburn Hills. “In the male-dominated world of construction, it is great to see such a talented woman excel at such a high level.” Bruce led the company’s first LEED silver certified project for Auburn Hills-based Henniges Automotive and has since earned her LEED AP BD+C certification. Over the past two years, she has managed the construction of more than 1 million square feet of new developments and is now overseeing the construction of a 460,000-square-foot facility for Fanuc America. “I feel very fortunate to have such a highly skilled, organized professional leading the construction of the Fanuc America major expansion in Auburn Hills,” said Joe Cvengros, general manager of Operations at Fanuc.

E tion Sh men

Abir Ali has a unique position at The Platform, which has more than $550 million in Detroit residential, retail and office development projects in the pipeline. A past Marshall Memorial Fellow for the German Marshall Fund and a member of the inaugural Detroit Revitalization Fellows cohort, Ali is currently an Arts Leaders as Cultural Innovators Fellow. She leads strategic design, public art and special programming across The Platform’s entire development portfolio. Since joining the company two years ago, she has focused on the quality and accessibility of projects, forging relationships with, among others, Design Core Detroit, Detroit’s Planning Department, The Riverfront Conservancy, Detroit Public Schools and Henry Ford Academy: School for Creative Studies. “Abir brings so much to the table — vision, creativity, expert skill at design, compassion and a love for the city and her fellow Detroiters. She gets that being a developer is about more than just putting a building somewhere. It’s about helping make a community stronger, not trying to redefine it. … The Platform is a better developer because of her hard work and dedication,” said Peter Cummings, executive chairman of The Platform. Ali, who is a member of numerous boards, advocates for people when thinking about development. “Her thoughtful leadership and liaison role to bridge new developments in communities to create an inclusive experience is critical,” said Ja’Net Defell, lead developer for IFF, which created IFF Learning Spaces to help improve quality early care in Detroit.

University

Rebecca Binno Savage, a 2018 Michigan Historic Preservation Network Citizen Award winner, is a valuable advocate for preservation in Michigan and in Toledo, Ohio. “Rebecca is well known in Hamtramck and the metropolitan Detroit area for her wide-ranging involvement in preservation projects,” said Greg Kowalski, chairman of Friends of Historical Hamtramck. “She was instrumental in the effort to retain and restore the baseball stadium at Hamtramck’s Veterans Memorial Park, which is one of the few remaining stadiums in the country where the old Negro baseball league used to play.” She also authored the national historic designation for the Jos. Campau Avenue shopping district in Hamtramck. Binno Savage serves on numerous boards and committees, including for the Detroit Sound Conservancy, Wayne State University’s Freer House, Detroit Area Art Deco Society and Downtown Detroit Partnership. Her knowledge of the Federal Historic Tax Credit program has helped Kraemer Design Group secure millions in financial incentives for historical properties. She has worked on the Women’s City Club, the former Detroit News building and the Park Avenue Building in Detroit. Another accomplishment was acquiring a National Register of Historic Places Historic District nomination for the Nelson Court and West Chicago Boulevard apartments that held special significance following the 1967 riots. Subsequently, the apartments were rehabilitated and preserved. “Rebecca’s … incredible attention to detail and care for this work is ensuring the lasting legacy for the heritage and unique character of Detroit,” said Robert Kraemer, principal and co-founder of Kraemer Design Group.

CONGRATULATIONS TO OUR VERY OWN TERRI FITZPATRICK

LEADER. ADVOCATE. EXPERT. DETROITER.

CONGRATULATIONS Kenyetta Hairston-Bridges, vice president, Real Estate and Financial Services, Detroit Economic Growth Corporation, for being named among Crain’s Most Notable Women in Real Estate for 2019. Through her relentless pursuit of inclusive development across the city, Kenyetta represents the very best of the DEGC.

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MELISSA DITTMER

 President and COO, Beztak Properties, Farmington Hills

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igan

 Education: Bachelor of Arts, Western Michigan University

 Education: Bachelor of Science in Business Marketing, Eastern

 Education: Master of Architecture and Urban Design, Columbia

Cindy Ciura’s CC Consulting, which offers business attraction, marketing and public relations services to real estate companies, has worked on significant projects across the region, including Somerset Collection, Campus Martius, The District Detroit and Robert B. Aikens & Associates LLC’s Asian Village and Five & Main projects in Novi and Commerce Township, respectively. The firm’s business attraction efforts represent more than 200 acres of property and more than $50 million in transactions. “Cindy Ciura of CC Consulting has introduced me to the Southeastern Michigan real estate market, and I am both excited and enthusiastic about my upcoming investments in this strong market,” said Mike Hoque, CEO of Dallas-based Hoque Global. Last summer, Oakland County selected Ciura’s company to bring new developers and retail to its downtowns and historic corridors at a time when some retailers are struggling to pay increasing rents and closings of big box retailers are requiring landlords to rethink their leasing strategies. “Real estate is a relationship business, and Oakland County has certainly benefited from Cindy’s contacts in this ever-changing business,” said Oakland County Executive L. Brooks Patterson. Ciura sits on the Michigan State Committee for the International Council of Shopping Centers. She is on the board of directors for the Strand Theatre and the marketing committee for the Michigan Humane Society. In 2016, she earned national recognition from Retail Forum as one of its Top Women in Retail/Commercial Real Estate.

In September, Bedrock Detroit promoted Melissa Dittmer from vice president of architecture to her current role. As chief design officer, she is responsible for coordinating short- and long-term design strategies for Bedrock’s entire real estate portfolio, which includes more than 18 million square feet of existing properties along with new construction and developments. The architect also is responsible for the marketing team and takes time to recruit architecture and design talent. Dittmer strives to demonstrate the importance of using architecture and design as urban regeneration strategies and has co-authored all of Bedrock’s master planned projects, including the 8.4-acre City Modern in Brush Park. She also collaborated with civic leaders on Detroit’s 242-page proposal to Amazon for its HQ2 headquarters. A multiple award winner and member of numerous industry organizations, Dittmer led the design of the Detroit Blight Removal Task Force Plan and founded Detroit Design 139. Detroit Design 139 seeks to positively influence future development projects within the city’s 139 square miles. Dittmer co-led its 17-day architecture exhibit, which included 16 public events. “I've worked with Melissa for the past 10 years on initiatives to revitalize Detroit,” said Olga Stella, executive director of Design Core Detroit. “She is thoughtful and innovative, principled and dedicated. In her role at Bedrock, Melissa is using the tools of design to dramatically reshape the downtown landscape. Melissa's progressive vision will create a more vibrant, walkable and beautiful city.”

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Elizabeth Carlson McCririe knows how to differentiate motion and results. She is responsible for Beztak Properties’ entire management division, including residential and commercial properties, and all related overhead support departments. And since she joined Beztak nine years ago, the company has expanded to managing more than 20,000 units and employing more than 1,000 associates from managing 5,600 units and 200 associates. In the past two years, Carlson McCririe has helped Beztak close on six Class A and three luxury senior living projects and added 23 new fee-managed clients to its portfolio. Last year, the company added COO to her title. She also is guiding her company around the labor shortage plaguing many industries. In the past two years, Carlson McCririe and her team have added tuition reimbursement, a training program with 300 classes, an executive leadership program that identifies and provides mentoring to potential leaders and a manager-in-training program that recruits individuals with excellent service skills. “As an industry associate of 30 years, I have witnessed her impact on the multifamily industry. Her vision to provide innovative technologies and first-class customer satisfaction deliver results and impact their residents and their owners. Beztak Properties, a national company, under Elizabeth’s leadership enjoys distinction and respected reputation,” said Sheri Bretz, senior account representative at CORT, a Berkshire Hathaway company.

Michigan University

University

CONGRATULATIONS!

KIRSTEN ELLIOTT CRAIN’S DETROIT 2019

NOTABLE WOMEN IN

You handle the business, we’ll handle the banking. Since 1917, we’ve helped businesses thrive with abundant financing options and a full range of business banking products. The right business connections can help you be more successful. That’s why it is important to work with the right people who will listen to what you need, and realize how important your business is to you and the community. Learn more at ChemicalBank.com.

REAL ESTATE

VICE PRESIDENT OF DEVELOPMENT

Congratulations to Sadie Erikson on being one of Crain’s 2019 Notable Women in Commercial Real Estate! Sadie Erikson VP Business Development

A DIVISION OF CHEMICAL BANK

Jefferson Oaks, Oak Park

Member FDIC

www.communityhousingnetwork.org

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

CRAIN’S 2019 NOTABLE WOMEN IN REAL ESTATE BARBARA EATON

KIRSTEN ELLIOTT

SADIE ERICKSON

n Vice President and Director of Leasing and Business Development,

n Vice President of Development, Community Housing Network, Troy

n Vice President, Business Development Manager, InSite Capital (a

n CO Birm

n Education: Master of Business Administration, Grand Valley State

n Ed

Community and industry professionals esteem Sadie Erickson as much more than a banker for InSite Capital, which invests tax credit equity into community development projects on behalf of parent company Chemical Bank. “Her concern for the many blighted neighborhoods and their residents is translated into advocacy at the State legislature to reinstate rehabilitation tax credits as well as funding for redevelopment of Detroit’s neighborhoods,” said Nancy Finegood, executive director of the Michigan Historic Preservation Network. One example is in her role as finance committee member for the nonprofit Dwelling Place of Grand Rapids, which develops affordable housing in West Michigan. For her part at InSite, Erickson is credited with being instrumental in growing the portfolio to over 40 tax credit investments totaling $139 million in Michigan, Indiana and Ohio from 15 investments totaling $33 million in just three years. When tax reform shook the Historic Tax Credit industry in 2017 with changes, she adapted quickly and worked alongside industry professionals to interpret the provisions and keep projects moving forward. For one project, Erickson partnered with New York-based development team ASH NYC to develop a financing structure to rehabilitate the shuttered Wurlitzer building in Downtown Detroit. Last year, the Siren Hotel opened in the rehabbed space. “Her deep knowledge of the tax incentives, financing difficult construction and skills in collaborating with owners, developers, municipal and state government and the professional organizations that support these developments has distinguished Sadie in the industry,” said Thomas Shafer, president and CEO of Chemical Bank.

T fore

Redico, Southfield

n Education: Bachelor of Fine Arts in Ceramics/Printmaking, Wayne

State University

n Education: Wayne State University

With nearly 30 years of commercial real estate experience, Barbara Eaton is a key component of Southfield-based Redico LLC’s leasing apparatus. The Wayne State University graduate is involved in the leasing of the company’s trophy office properties like downtown Detroit’s One Kennedy Square and 150 West Jefferson buildings, Southfield’s American Center and One Towne Square and Two Towne Square and downtown Birmingham’s 480 Pierce St. building. “Barbara has been a tremendous asset to the Redico team over the last seven years. Her experience in leasing has consistently allowed us to achieve or exceed our occupancy goals year-overyear,” said Dale Watchowski, CEO, COO and president of Redico. One of Crain’s 50 Names to Know in Real Estate, Eaton has a talent for building strong relationships. As a result, she has leased nearly 2 million square feet of property, valued at $247 million, in the past three years alone. She also works with Redico’s investment team to help with new acquisitions. “I have had the opportunity to know and work with Barbara over our respective long careers, and subsequently, have enjoyed watching her excel in all facets of real estate — global corporate real estate consulting, development, investment and management, to name a few. She is a remarkable talent and truly elite in our industry,” said John Latessa, president of CBRE Inc.’s Midwest Division.

In her 17 years with Community Housing Network, Kirsten Elliott has grown the nonprofit’s development department into one of Michigan’s leading developers of affordable housing. In her role, Elliott manages all aspects of real estate development, analyzes proposed legislation and ensures the voices of people in need are heard by advocating for funding increases at the local, state and federal levels. “Kirsten always promotes building inclusive communities and she is a champion for those that might not have a strong voice. No matter how many opportunities are met with challenges or funding that is not approved, she continues to seek out ways to promote new affordable developments,” said Carrie Mendoza, vice president and CFO at CHN. In recent years, Elliott has closed over $22 million in transactions, including the $18 million adaptive reuse of the former Jefferson School in Oak Park into 60 units of affordable housing. Elliott also led an effort to revive vacant, blighted lots in a Pontiac neighborhood through lease-to-purchase housing. She also leads the Community Economic Development Association of Michigan’s annual Real Estate Boot Camp, where she trains future leaders in affordable real estate development. With the help of a community engagement coordinator, integrated a public health strategy called ACEs Too High that tackles the way childhood traumas affect physical and mental health. The strategy addresses a potential resident’s ability to engage, participate, heal and develop resiliency plans.

Congratulations, 2019 Notable Women in Real Estate Honoree

Jeanette Schneider

Vice President, RE/MAX of SE Michigan Whether you are a buyer, seller, current homeowner or simply enjoy the topic of real estate, join Jeanette every Thursday at 7 pm on 760 WJR where she talks about all things real estate. Jeanette, along with RE/MAX agents and industry insiders share the tips, techniques and trends that help you buy, sell or maintain your home.

Expert Agents, Expert Advice

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

TERRI L. FITZPATRICK

ANNE GALBRAITH KOHN

KENYETTA HAIRSTON-BRIDGES

 COO and Vice President of Development, Boji Group, Lansing /

 Senior Vice President, Capital Market, CBRE Inc., Southfield

 Vice President of Real Estate and Financial Services, Detroit

Birmingham

 Education: Master of Business Administration, University of Michigan

 Education: Michigan Political Leadership Program,

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Terri Fitzpatrick had a wealth of real estate experience before joining Boji Group five years ago. She served as real estate director and strategic development director for the State of Michigan, Department of Technology, Management and Budget; real estate director and vice president of Development for the Sault Ste. Marie Tribe of Chippewa Indians; vice president of development for Greektown Casino; and vice president of tribal business development for the Michigan Economic Development Corp. Her management and relationship-building skills and her understanding of public-private partnerships help bring Boji projects to fruition. There, Fitzpatrick leads a team of 25 in managing leases and 2.8 million square feet of new and existing developments in Michigan. For example, she was instrumental in successfully winning a Michigan State Senate RFP bid for securing new office space. She also helped Boji successfully win a City of Birmingham bid for development of multiple, multi-use properties and launch a $94.2 million development of the Royal Oak City Center project. “Terri is a consummate professional. She manages to accomplish this while also ensuring that our most valuable asset, our people, are well managed and in roles they can excel at,” said Boji Group President Ron Boji. Fitzpatrick also dedicates time to her community. As a proud member of the Sault Ste. Marie Tribe of Chippewa Indians, she has served on various tribal commissions, including the Economic Development, Housing and Utility authorities.

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In the past two years, Anne Galbraith Kohn closed on the sale of more than 40 properties of more than 3.4 million square feet, valued at $582 million. Properties include a $55 million parking deck at the Renaissance Center. Prior to that, the Michigan State University and University of Michigan graduate worked on a $102 million, 22-building sale of a company’s entire Ann Arbor portfolio in 2015, among other significant transactions during her nearly 30 years in the commercial real estate industry. In addition to tirelessly dedicating herself to clients’ goals and objectives, “Anne also has gone to great efforts to mentor others and share her success. Equally, Anne is a staunch supporter of our diversity and inclusion efforts and has gone to great lengths to engage diverse companies and/or individuals to provide opportunities in our industry,” said John Latessa Jr., president of the Midwest Division of CBRE. Galbraith Kohn participates in the agency’s women’s network and mentor programs. She is also a member of CBRE’s Investment Properties Advisory Board and of the International Council of Shopping Centers.

Economic Growth Corp., Detroit

 Education: Master of Business Administration, Central Michigan

University

Kenyetta Hairston-Bridges has a talent for developing forward-thinking solutions to complex challenges. At Detroit Economic Growth Corp., she supports Detroit’s development community by easing land assembly deals, resulting in investments that attract businesses and create jobs and dense neighborhoods. “Kenyetta is truly a visionary in her field. Not only does her expertise and dedication to the city shine through in her unmatched ability to close major deals to the benefit of Detroit, but she also inspires those around her to strive for the exceptional,” said DEGC President and CEO Kevin Johnson. Hairston-Bridges has facilitated development projects such as Michigan Central Train Station, the Hudson’s site, Flex-n-Gate, ArcelorMittal and Sakthi Automotive Group. She is overseeing the development of I-94 Industrial Park. These projects have generated $1.6 billion in investment in Detroit, including over 5,000 jobs. “She’s a strong and credible strategist and negotiator, treating everyone with the same standard of integrity and support,” said Camille Walker Banks, executive director of Goldman Sachs 10,000 Small Businesses Program. Hairston-Bridges also has worked with city government to design and implement guidelines and underwriting standards of Detroit tax abatements that mitigate risk. She also helped develop policy guidelines and processes for the city’s tax incentive program. In addition to participating in several industry organizations, Hairston-Bridges supports the community as a mentor and athletic coordinator for the girls who participate in Detroit PAL.

FARBMAN GROUP CONGRATULATES

KRISTIN SMOLINSKI FOR BEING RECOGNIZED BY CRAIN’S AS

NOTABLE WOMEN IN COMMERCIAL REAL ESTATE Farbman Group is one of the largest and most respected full-service commercial real estate organizations in the Midwest.

A Leader By Example Business and Building Owner; Commission Chair; Arts, Culture and Education Champion; Community Advocate; Speaker - We could go on! The Detroit-Wayne Joint Building Authority fellow Commissioners and staff congratulate our chairperson Sharon Madison on being recognized as a Crain’s 2019 Most Notable Woman In Real Estate. Her leadership, passion, and dedication in many areas is a testament to what she has achieved and the many contributions she continues to make.

Kristin Smolinski Director of Property Management

Coleman A. Young Municipal Center Two Woodward Avenue 13th Floor Detroit, MI 48226 (313) 309-2300 www.caymc.com

28400 Northwestern Hwy Fourth Floor Southfield, MI 48034

248 353 0500 farbmangroup.com www.naifarbman.com

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

CRAIN’S 2019 NOTABLE WOMEN IN REAL ESTATE SUSAN HARVEY

DEBRA HOMIC HOGE

KAREN KAGE

n Senior Vice President, Ashley Capital LLC, Canton

n Global Director of Real Estate, General Motors Co., Detroit

n CEO, Realcomp II Ltd., Farmington Hills

n Me

n Education: Juris Doctor, Wayne State University

n Education: Master of Business Administration, University of

More than half of the employees in Ashley Capital’s Detroit office have been there for 15 years or more — no small feat in an industry that was rocked by the recession. It’s just one example of Susan Harvey’s leadership. Another example: nearly 20 million square feet of the approximately 25 million square feet of Ashley Capital’s property portfolio is in Michigan. “Susan is equally talented in her dealings with government officials and with corporate senior executives in sensitive confidential matters,” said Paul Rubacha, principal of Ashley Capital. “She has assembled a cohesive team that has excellent skills” in construction, leasing, property management and financial management, Rubacha said. “But merely hiring the people is not enough. Susan’s leadership talents bring this group of professionals together, allowing the group to successfully conquer challenges which they would not, working as individuals.” “For many years, Susan Harvey has probably done more than anyone else to improve the commercial landscape of Livonia, bringing redevelopment and jobs to our community,” said Mark Taormina, director of Planning and Economic Development for the City of Livonia. Harvey earned the 2018 Community Enhancement Award from the Livonia Chamber of Commerce for her part in redeveloping a General Motors property into the Livonia West Commerce Center. A member of numerous industry groups, Harvey established and implements an Adopt-A-Family program at Ashley that served more than 400 people in Southeast Michigan last year.

Detroit-Mercy

Debra Homic Hoge is responsible for providing strategies and services for the acquisition, disposition and redevelopment of real estate for General Motors. Her 30-person team manages 2,100 agreements and a more than 280-million-square-foot portfolio in 33 countries. Under Homic Hoge’s leadership, GM recently completed the World Project at its Renaissance Center headquarters. The World Project is a five-story, artificial intelligence-operated, interactive content engine projected on a wall comprised of 17 large-scale LED screens. The team also is on track to complete renovation of the RenCen’s podium-level restaurants and is adding a 23,000-square-foot restaurant, called Highlands. “Debra has skillfully guided General Motors through some of the harshest economic times and has a proven record of business and civic accomplishments. She has always been an outspoken voice for leadership, professionalism and diversity in our industry and community offering a tremendous example for professionals across the globe and here in her home town of Detroit,” said Eric Larson, president and CEO of Larson Realty Group and CEO of the Downtown Detroit Partnership. Homic Hoge, who was named in Crain’s 50 People to Know in Real Estate, serves on the executive board of the Downtown Detroit Partnership, a nonprofit that works to advance the city through engagement, development and programs.

Under Karen Kage’s leadership, Realcomp, the largest multiple real estate listing service in Michigan, has grown to nearly 16,000 subscribers from 8,500 in 1995. In 2018, its subscribers facilitated more than $18 billion in transactions, posting nearly 130,000 new listings and closing sales on more than 76,000 homes and condos. Known for her aversion to complacency, Kage introduced five new programs in the fourth quarter of 2018 alone. They include new CRM and billing systems, a national home search portal, creating a relationship with a new data provider for public record data and rolling out a new electronic lockbox system for subscribers. She negotiated an agreement with Zillow that allows her broker clients to provide listing information to consumers. Kage also is working with other MLS groups to develop a data and/or resource sharing system to provide greater value, lower costs and lessen time. In the community, Kage is a member of the Council of MLS and serves on the board of trustees at Lifepoint Christian Church and the Well of Waterford. “Her understanding of finance, reporting, budgeting and proper documentation has ensured that we have everything we need to earn the confidence of our congregation regarding fiscal responsibility and overall outreach,” said Lifepoint Senior Pastor Richard Bosnack.

Congratulations

Barbara Eaton 2019 Crain’s Detroit Business

“Notable Women in Real Estate” We Celebrate You!

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MONICA LABE

DENISE LEWIS

SHARON MADISON

n Member, Dickinson Wright PLLC, Troy

n Partner-Urban Redevelopment Practice Group, Honigman LLP,

n Owner, Madison Madison International; Chair, Detroit-Wayne Joint

n Education: Juris Doctorate, University of Michigan Law School

n Education: Master of Urban Planning, University of Michigan

A talented attorney known for being the go-to person for urban redevelopment matters in Detroit, Denise Lewis closed on 15 real estate deals totaling nearly $580 million in 2017 and 2018 alone. “She is omnipresent in Detroit real estate circles, and her body of work at Honigman demonstrates why she is clearly amongst the notable women in real estate in our region,” said Matt Cullen, CEO of JACK Entertainment and principal of Rock Ventures. Projects for which Lewis represented a party in the past two years include developments in Detroit’s Paradise Valley district, the sale of the St. Regis Hotel, granting a Renaissance Zone tax abatement to a defense contractor for the City of Pontiac, restructuring bond financing for Detroit Renewable Energy and Wayne State University Research and Technology Park. She is currently working on closing a mixed-income, multi-family, 300-unit development in Brush Park, among other transactions in Detroit and nationally. Lewis, who founded Honigman’s Urban Redevelopment Practice Group, is devoted to recruiting and coaching women attorneys and attorneys of color to take on leadership roles with real estate clients. Lewis serves on several community and industry boards, including the Commercial Real Estate Women, Invest Detroit and the McGregor Fund. “Denise is a fierce advocate for Detroit’s minority developers and, as a longtime member of Invest Detroit’s Oversight and Investment Committees, has helped to bolster our commitment to inclusivity and equitable opportunity,” said Dave Blaszkiewicz, president and CEO of Invest Detroit.

Sharon Madison is the third generation in her family to lead architecture, engineering, construction management and real estate development in 21 states, Africa and in the West Indies. The conglomerate has managed more than $5 billion in design and construction projects, including 20,000 units of residential housing. With Madison in charge, her companies have redeveloped Downtown Detroit’s over-100-year-old Julian Madison Building, named after her father, and leased a home for shared workspace company Bamboo. “Sharon is a … trailblazer for women and minorities in the field. She is well known and highly regarded for providing strategic real estate development and creative design solutions,” said Gregory McDuffee, executive director of the Detroit-Wayne Joint Building Authority. Detroit City Council appointed Madison chair of the Detroit-Wayne Joint Building Authority and as a representative on the Board of Commissioners. Under her direction, the Building Authority operates the 745,000-square-foot Coleman A. Young Municipal Center under budget. Last year, the center commenced a $10 million capital spending plan focused on technologically focused security and energy savings initiatives. Also in 2018, the Environmental Protection Agency honored the Building Authority with an Energy Star designation for reducing energy consumption. In addition to the Building Authority, Madison serves multiple industry organizations, including the Urban Land Institute, Real Estate Executive Council and Building Managers and Owners Association International.

n Education: Juris Doctor, Northwestern University

Monica Labe has worked her way up the ranks of Dickinson Wright and by the end of 2018 had become the highest-ranking woman in the firm. For the past eight years she has served as a member of Dickinson Wright’s Management Group, acting as one of the firm’s deputy CEOs. During her term as a deputy CEO, she led Dickinson Wright’s 10 practice departments along with the Marketing/Business Development department and the Finance and Accounting departments. Her responsibilities include serving as national lead real estate counsel for Fiat Chrysler, among other clients. In the past two years, Labe has been the lead attorney in hundreds of transactions totaling about $400 million in the U.S. “Monica Labe is an outstanding real estate attorney who is adept at negotiating, documenting and consummating a wide array of real estate transactions, while remaining mindful of business objectives. Monica leads a deep bench of real estate lawyers who, together with Monica, provide prompt, efficient and cost-effective legal service to our company,” said Sara von Engle Bernthal, senior counsel of Real Estate for Fiat Chrysler (FCA US LLC). Labe is a fellow of the American College of Real Estate Lawyers and in 2018 was elected the Midwest Real Estate News’ Commercial Real Estate Hall of Fame. In the past five years, Labe has represented the Detroit Land Bank Authority, the Detroit Opera House, and one of the largest thoroughbred race track owners in the U.S. She represented a $6 billion REIT in the leasing, acquisition, development and sale of its 4 million-square-foot office and industrial portfolio and has served as lead counsel on real estate projects in Arizona, Hawaii, North Carolina and Louisiana. She serves in the community as a board member of Winning Futures and has been active with the Jewish Federation of Metro Detroit, recently participating in the Grosfeld Mission.

Detroit

Building Authority, Detroit

CONGRATULATIONS

ELIZABETH CARLSON MCCRIRIE FOR BEING NAMED AMONG CRAIN’S 2019 NOTABLE WOMEN IN REAL ESTATE WITH APPRECIATION, BEZTAK ELIZABETH IS A DRIVING FORCE OF GROWTH AND OPPORTUNITY WITHIN OUR COMPANY. EXCITING CAREER OPPORTUNITIES MANAGEMENT MARKETING & LEASING

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 1 8 , 2 0 1 9

CRAIN’S 2019 NOTABLE WOMEN IN REAL ESTATE SUSAN MOSEY

LYNETTE REYNOLDS-SMITH

BONNIE RICHTER

n Executive Director, Midtown Detroit Inc., Detroit

n Vice President of Escrow Accounting, Amrock Inc., Detroit

n Vice President of Brokerage Services, Real Estate One, Inc.; Director,

n Vic

Prior to beginning her real estate career in 1977, Bonnie Richter was a pediatric nurse and then a regional vice president for a pharmaceutical company. Richter consistently looks for opportunities that move the dial. For instance, rather than lose hope during the Great Recession, she looked for ways to help residents avoid foreclosure. Her solution was creating training platforms for service providers, governmental agencies and consumers to help keep residents in their homes and to facilitate sales agent career paths. Consequently, Real Estate One has an innovative system of attracting new talent through its Real Estate One Academy. More than 1,700 new and experienced sales agents annually attend the academy for licensure and other relevant coursework. Richter authored the curriculum, assembled a faculty of industry experts, developed the Institute 2.0 Apprentice Advance and provided access to career coaching. She also seeks creative cost efficiencies while meeting the demands of evolving trends. Under her direction, deposits, document delivery and signatures are now electronic. In addition, sales associates can now participate in online learning. Richter participates in several community and industry organizations, including Meals on Wheels and the Realty Alliance. “Bonnie has been a leader in many capacities within the Realty Alliance,” said Craig Cheatham, president and CEO of The Realty Alliance. “She has been a mentor and resource for our recruiting and professional development leaders.”

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n Education: Master of Urban Planning, Wayne State University

Sue Mosey has put her more than 20 years in development and real estate to good use for Detroit’s businesses and residents. Under her leadership, Midtown Detroit Inc., which was formed by a merger between the University Cultural Center Association and New Center Council in 2011, partners with developers, business leaders, local institutions, the city, foundations and others to encourage development of mixed-income neighborhoods. “Sue is a visionary who sees possibilities where others see none. She has worked tirelessly over 30 years to curate projects in Midtown that have transformed the area into a vital hub for residents, students and visitors. Without Sue’s tenacity and leadership, progress would be far short of what it is today,” said Marcia Ventura, senior vice president of lending for Invest Detroit. Mosey has brought lighting and other infrastructure improvements to the area, such as green alleys, landscaping pathways and streetscape amenities. Her team is also responsible for projects such as the Inn on Ferry Street, the $28 million restoration of the historic Strathmore Apartments and the redevelopment of over 80,000 square feet of new mixed use development along Woodward in the New Center district. Currently, MDI is creating a number of new mixed-use developments along the Selden corridor, including new housing, commercial, net zero energy homes, a new public courtyard and the repositioning of the vacant Jefferson School, along with its longtime partner Invest Detroit.

Lynette Reynolds-Smith’s talent for strategic thinking and her drive to always find a better way has helped her create new efficiencies at Amrock, a national provider of title insurance, property valuations and settlement services. “She is a model of competence and character with a clear understanding of our business. Lynette operates with a high standard of excellence and stays composed and focused under pressure. She is also a selfless individual who creates an empowering atmosphere focused on developing others within our organization,” said Amrock General Counsel Tim Donovan. Reynolds-Smith is responsible for all of the money coming into Amrock through real estate transactions and the hundreds of team members who are involved with those transactions. That includes dozens of bank accounts across five national banks and thousands of wires daily. Her tenure with the company gives her insight into the needs of staff and clients. Accordingly, she has been working with Amrock’s technology team to find better ways to handle electronic payments and automation. This includes challenging the assumption that title agents can’t process transactions via ACH (Automated Clearing House) and working closely with attorneys and the American Land Title Association to pave the way for electronic fund transfers that streamline the payment procedure.

Real Leadership in Residential Real Estate

Real Estate One Academy, Southfield

JEANETTE SCHNEIDER n Vice President of Management Services, Re/Max of Southeastern Michigan, Troy n Education: Bachelor of Business Administration, Central Michigan University

Jeanette Schneider is the first female and nonowner to become a vice president for the Detroit region of Re/Max of Southeastern Michigan, leading 60 offices and nearly 1,000 sales associates in Wayne, Oakland, Macomb and Monroe counties. She launched “Re/Max Real Estate Insights” on WJR-AM where she hosts, books guests, scripts content and manages social media. “Her enthusiasm and ability to build relationships has aided us greatly as we’ve grown the Re/Max brand throughout southeast Michigan. (Jeanette) is an integral part of our success and a valued member of the executive team,” said Joe Sabatini, vice president and regional director of Re/Max of Southeastern Michigan. Moreover, Schneider developed a comprehensive leadership and coaching program that helps Re/Max franchises understand the importance of setting and sharing a mission and better manage business by using a framework that keeps them focused on measuring efforts and results with recruiting, retaining, marketing, finance and technology. Schneider is active at Good Shepherd Lutheran Church, where she works with Sunday School children, directs the adult choir and is the organist. “She has a unique ability to manage a variety of personalities and has created an environment where everyone is heard, but she maintains control and keeps things on track. When things go well, the praise goes to others and should there be a hiccup her response will quickly be ‘that’s on me,’” said the Rev. Thomas Schroeder, pastor of Good Shepherd Evangelical Lutheran Church.

HOW WE SELECTED THE NOTABLE WOMEN IN REAL ESTATE For more than 40 years, Karen Kage has distinguished herself in the industry through her vision, integrity, and dedication to her customers and Multiple Listing Service subscribers. The Realcomp Board of Governors congratulates Karen on her tremendous contributions and this prestigious honor. Your Success is Our Success! Phone: 866.553.3003 Realcomp.MoveInMichigan.com | www.MoveInMichigan.com www.facebook.com/realcompiimls | twitter.com/realcompmls

The women featured in this Notable Women in Real Estate report were selected by a team of Crain’s Detroit Business editors based on their career accomplishments, their track record of success in real estate, their contributions to their community and mentorship of others in the field, as outlined in a detailed nomination form.

Notable Women in Real Estate was managed and written by Leslie D. Green. For questions about this special report, contact Amy Elliott Bragg at (313) 446-1646 or abragg@crain.com or Michael Lee at (313) 446-1630 or malee@crain.com. For more in our Notable Women series or to nominate a Notable Woman for an upcoming section, visit crainsdetroit.com/notablewomen.

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MARCIA VENTURA

KATHERYNE ZELENOCK

 Vice President and Director of Property Management, Farbman

 Senior Vice President, Invest Detroit, Detroit

 Chair, Real Estate Finance Practice Group, Dickinson Wright PLLC, Troy

 Education: Master of Business Administration, Finance, University

 Education: Juris doctor, University of Notre Dame

Marcia Ventura joined Invest Detroit, a community development financial organization, as a real estate lender but has taken the lead of strategy and implementation of its new market tax credits and commercial/industrial projects. “Marcia exemplifies the kind of creativity and perseverance that is required to succeed in real estate finance today, especially in emerging markets like Detroit,” said James Van Dyke, executive vice president of the Roxbury Group. A well-respected leader, she has installed more than $30 million in loan, grant and market tax credits that have leveraged more than $300 million over the past two years. Moreover, she was instrumental in implementing the Strategic Neighborhood Fund, a partnership of Invest Detroit, the City of Detroit, J.P. Morgan Chase, foundations and others to revitalize neighborhoods. Since launching in 2016, the fund has committed more than $130 million to the redevelopment of 10 neighborhoods. She has worked closely with Midtown Detroit and others on the Fourth Street Ecohomes, with residences that will feature rooftop solar panels, solar thermal hot water heating and rain barrels. “Marcia Ventura …has been critical to a number of key catalytic projects in the Woodward Corridor. We are lucky to have her as a partner,” said Sue Mosey, executive director of Midtown Detroit Inc. Ventura, who played an essential role in West Village residential project The Coe, was also a vital partner in the 2014 formation and strategy of the Detroit Innovation District, an effort to support real estate and tenant improvements for innovative companies that locate in specific “microdistricts” downtown.

Katheryne Zelenock has been the principal closing attorney for more than 350 commercial mortgage transactions, valued at more than $1.5 billion, in the past two years. As chair of Dickinson Wright’s Real Estate Finance Practice Group, she leads an estimated 20 attorneys and legal assistants and provides leadership to about 100 additional professionals in the firm’s general real estate and finance practices. Under her leadership, Dickinson Wright is the only Michigan-based law firm approved to close Freddie Mac Small Balance Loans. She is also experienced in dealing with troubled properties and owners along with the restructuring, related litigation and due diligence. “We like to get her involved as early as possible in our deals because she is passionate about finding a solution, while protecting our interests as lender. … She has an ability to make complicated situations more straightforward, and helps all of the parties to a transaction get on the same page,” said Clint Darby, managing director of Greystone Servicing Corporation Inc. In recent years, Zelenock, a fellow of the American College of Mortgage Attorneys, led the development of transaction and document-automated software, StreamLoaner and Lexicon, as well as a regulatory compliance database for lenders and lawyers. She is chair of Dickinson Wright’s Women’s Network and was recently appointed co-chair of the firm’s Diversty and Inclusion Committee. She won the firm’s “Champion of Diversity” award in 2017. She also serves on the board of directors for Eversight, a nonprofit that works to restore sight and prevent blindness, and is an advisory board member and volunteer for the Detroit Urban Debate League, which promotes interscholastic debate for students in underserved schools.

Group LLC, Southfield

It’s a good problem to have, but Detroit’s commercial real estate boom has made it challenging for firms to keep up. At Farbman, Kristin Smolinski's problem-solving skills and tech savvy have helped Farbman manage the rush. Kaitlyn Carr, an associate at Kitch Drutchas Wagner Valitutti & Sherbrook, recently joined the Building Owners and Managers Association, where Kristin Smolinski has been a longtime member. “I am excited to learn from Kristin,” Carr said. “Only a few women have risen through the heavily male-dominated ranks of Detroit’s commercial real estate industry, and Kristin is one of them. She brings invaluable experience to the table and is an exceptional mentor.” Farbman Group has promoted Smolinski several times in the past 12 years, including last year for her hard work, professionalism and innovative problem-solving skills. Smolinski manages eight to 10 property managers and between 14 million and 16 million square footage of commercial, industrial and retail assets. She also helped Farbman adapt to increasing levels of development and real estate in Metro Detroit by implementing more efficient software, such as such as Yardi systems applications, Commercial Cafe, Mobile Maintenance and Advance Budgeting. Further, she matched the needs of the company’s property management team to other suitable and effective technologies that make administrative procedures simpler and more accurate for construction, accounting and operations managers and tenants.

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DEALS & DETAILS MERGERS & ACQUISITIONS JJValassis

Communications Inc., Livonia, a media company, has acquired Get1free Inc., San Diego, Calif., a direct mail company. Websites: valassis.com, get1free.com JJBelanger Inc., Northville, a car wash equipment manufacturer, was acquired by Dover Corp., Downers Grove, Ill., manufacturer of industrial products. Websites: belangerinc.com, dovercorporation.com JJParagon Metals LLC, Hillsdale, a components manufacturer, was acquired by affiliates of Stellex Capital Management, New York, N.Y., a private equity firm. Websites: paragonmetals.com, stellexcapital.com JJMetroNet Fiber Inc., Evansville, Ind., fiber-optic internet, TV and phone service provider, acquired LightSpeed Fiber Communications LLC, East Lansing, a fiber-optic internet company that serves Lansing, Grand Rapids, Southfield, Huntington Woods and Ypsilanti. Websites: MetroNetinc.com, golightspeed.com JJSigma International, Livonia, an automotive decorative trim supplier, has acquired CINOS, Gyeonggi-do, South Korea, an LED lighting supplier. Websites: sigmaintl.com, cinosusa.com JJHour Media Group LLC, Troy, a publisher, acquired the Palm Beach Relocation Guide, Palm Beach, Fla., a guide for newcomers to the Palm Beach area. Websites: hourmediallc.com, palmbeachrelocationguide.com JJThe boards of directors of the Printing Industries Of Michigan Inc., Northville, a nonprofit trade association, and the Printing Industries of Ohio and Northern Kentucky, Westerville, Ohio, a trade as-

sociation, have agreed in concept to merge into one association, serving Michigan, Ohio and three counties in northern Kentucky. Websites: print.org, pianko.org

CONTRACTS JJMMS Holdings Inc., Canton Township, a research foundation, has partnered with Massachusetts Institute of Technology and the University of Maryland in an effort to speed up the drug approval process by comparing effectiveness claims for similar drugs in development, examining evidence from existing data, assessing treatments, identifying treatment gaps and evaluating patient risks. Website: mmsholdings.com JJBMG Media Co., Birmingham, a web design firm, has been named the agency of record for Troy-based software company E7 Solutions’ new website. Website: bmgmediaco.com, e7solutions.com JJAcuitas, Lansing, a government relations and advocacy group, has a partnership with River Strategies, Detroit and Chicago, a marketing and public relations firm, for marketing, branding, digital strategy, public relations and public affairs. Websites: acuitasllc.com, riverstrategies.com

EXPANSIONS JJCentria

Healthcare, Farmington Hills, a home health care service, has expanded its autism services into the MetroWest area of Boston through its affiliate, Applied Behavioral Associates LLC, which offers home-based services for children with autism. Centria Healthcare acquired Applied Behavioral Associates, Marlborough, Mass., last

SPOTLIGHT month. Websites: centriahealthcare.com, appliedbehavioralassociates.com JJPie Insurance, Washington, D.C., an insurance company, has begun selling workers’ compensation insurance to small businesses in Michigan. Website: pieinsurance. com JJClark Hill PLC, Detroit, a law firm, has merged with O’Gradys Solicitors, Dublin, Ireland, expanding its presence in Ireland. The merger with O’Gradys builds on the growth of its Dublin office in 2018 and brings the number of solicitors to 19. Websites: clarkhill.com

NAME CHANGE JJThe Big Green Gym, Auburn Hills, has changed its name to Yougopia, online community linking yoga studios and teachers to yoga users. Website: Yougopia.com

NEW SERVICES JJJudson Center, Royal Oak, a social services organization, has launched a new website, at judsoncenter.org. The website was developed by MCCI, Detroit, and was made funded with a grant from The Jewish Fund, Bloomfield Hills, a nonprofit grantmaking organization.

STARTUPS JJ9to5

Inc., Southfield, a software company, is offering Origami A.I. software for small and medium sized print companies. Website: 9to5partners.com. Submit Deals & Details items to cdbdepartments@crain.com

Ilitches hire Amway comms director

The Ilitch family hired Amway’s communications chief as vice president of corporate communications at Ilitch Holdings Inc. Shawn Platt was named the organization’s top spokesman last Monday, according to an Ilitch news release. He Platt replaces Doug Kuiper, who had held the post since 2014 and left in July for a job with the Michigan Economic Development Corp. Platt served for eight years as global director of corporate communication and brand for Grand Rapids-based multilevel marketing company Amway. Before that, he worked for various banks in corporate communications roles. He has a bachelor’s degree and master’s degree in communication from Purdue University. “With all of our growth, this is an exciting time for the Ilitch companies,” Christopher Ilitch said in the release. “Shawn is a highly experienced executive who has successfully managed communications and marketing across a variety of diverse businesses. ”

Whitmer hires charter school leader

Democratic Gov. Gretchen Whitmer hired Detroit charter school leader Doug Ross to be a senior adviser focused on boosting the state’s post-secondary education attainment rates and “fashion a coherent economic development policy,” according to Ross.

“Those are two areas the governor has asked me to focus my energy on,” Ross told Crain’s. Whitmer announced the appointment of Ross as “senior adviser for Michigan prosperity” last week on Ross the eve of her first State of the State address to the Legislature. “If we’re going to ensure Michigan's success, we have to take a proactive approach to building talent and fostering an attractive environment for businesses to create jobs,” Whitmer said in a statement. “I’m excited to work with Doug to build a state where more businesses move to for opportunity.”

Report: Impemba to join Red Sox radio team

Fired Detroit Tigers broadcaster Mario Impemba reportedly has landed a new job with the Boston Red Sox as a play-byplay radio announcer on the team’s flagship station WEEI-FM. According to the Boston Globe, Impemba will take the spot vacated Impemba when Tim Neverett chose not to renew his contract in December. Impemba will be part of a rotation that will team with lead broadcaster Joe Castiglione, who has been with the Red Sox since 1983. Others in the rotation will be Pawtucket Red Sox announcer Will Flemming, WEEI’s Rob Bradford and Lou Merloni, and Boston Sports Journal’s Sean McAdam, the newspaper reported.

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Todd Grzech has 30 years of experience in industrial settings, with over 18 in power generation (renewables, gas, coal, and nuclear). He will be responsible for compliance and the financial performance of the DRE portfolio of assets. Prior to joining DRE, Grzech was President/CEO of PIC Group, Inc., and was previously with the US Department of Energy’s Savannah River Site where he led and managed strict operational standards. He holds a Bachelor of Engineering and an MBA from Purdue University.

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CALENDAR FRIDAY, FEB. 22 Real Estate Forecast Breakfast. 8-9:30 a.m. Annual Real Estate Forecast breakfast featuring John North, CEO of Coldwell Banker Weir Manuel, and Robert Pliska, owner/managing director for SVN. The The event will be moderated by Paul Magy of Clark Hill. Bloomfield Bloomfield Open Hunt Club. $30 member; $40 nonmember. Contact: Kelly Bennett, email: kellyb@ bbcc.com; phone: (248) 430-7688.

UPCOMING EVENTS Breakfast of Champions: Leadership Oakland Hosts a Multi-generational Discussion. 7:30-9 a.m. Feb. 26. An interactive session with Leadership Oakland alumni for leaders of all ages. Panelists: Napoleon Harrington, owner/therapist, Ambassador Counseling & Resource Group; Kayla Roney Smith, executive director, Hazel Park Promise Zone and College Access Network, and Gary Wolf, director of Branch Integration, Flagstar Bank. MSU Management Education Center, Troy. $32 members; $36 nonmembers. Contact: Susan Hollady, email: shollady@leadershipoakland.com; phone: (248) 495-4781; website: leadershipoakland.com/breakfast-of-champions 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 Hannan 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 The 2019 Detroit Regional Chamber. The Policy Conference will discuss a vision for Detroit’s next generation. Leaders from business, government offer 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) 5960384; email: jyagiela@detroitchamber.com 16th Annual APACC East West Business Connection. 9:30 a.m.Pacific 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 The Hartford, will discuss acCEO, The

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tions 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 fighting the epidemic. employers in fighting 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 Bazzy 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 The Cabinet Studio; and president, The Moderator Christy McDonald, anchor, Detroit Public Television. Detroit Golf Club. $45 members; $65 nonmembers. Contact: Andrea Rayburn, phone: (313) 596-0340; email: arayburn@detroitchamber.com Mergers & Acquisitions. 12:30-2:30 p.m. March 11. Speaker John Schembari discusses how to approach embenefits issues in mergers and ployee benefits acquisitions for a successful transition. Presentation will discuss embenefits risks in a merger, ployee benefits stock or asset sale, with attention to challenges and potential issues related to transaction type and employee benefit plans offered. offered. Management benefit Education Center, Troy. $50 members; $75 nonmembers. Contact: Patty Dickerson, email: PDickerson@ PPSMI.com; phone: (810) 579-0089.

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FROM PAGE 1

But the declines in “traditional-age students” faced by Michigan’s fouryear universities pales to what’s happened at the state’s community colleges. Since 2009, Macomb Community College has seen a more than 46 percent decline in enrollment of recent high school grads, Oakland Community College a more than 65 percent decline and Henry Ford College a more than 33 percent decline. At Macomb Community College, that means a reduction in course offerings and reduction in adjunct faculty. “You need fewer classes when you have fewer students,” James Sawyer IV, the college’s president, told Crain’s. “That does really impact our faculty. I wouldn’t say it’s a financial crisis for us, but we are sensitive to the decline.”

Skimming more from the top “Clearly the fact that there has been a smaller and shrinking pool of those coming out of high school is affecting everyone,” said Michael Hansen, president of the Michigan Community College Association. “Universities have a way through the admissions spigot to control how many people they admit. We can’t.” For instance, MSU admitted its largest incoming freshman class in the fall of 2018 with more than 8,400 students, up more than 2 percent from 2017. The majority of that increase was from more in-state students, representing 76 percent of the total, up from 70 percent in-state the year before. For each of the last seven years, GVSU has welcomed its largest incoming freshman class in its history, last fall with more than 4,000 students. Hansen said Michigan’s public institutions are cannibalizing each other and the larger classes at MSU, GVSU and others have a domino effect. “Maybe there were students who didn’t think they were getting in to MSU and now they are,” Hansen said. “That leaves an opening at that student’s second choice, Oakland University, so they take a different student that maybe didn’t think they were getting in there. They take that kid that maybe was going to go to a community college.” In an interview with Crain’s prior to his unceremonious departure ear-

ANGELS FROM PAGE 1

“In another few months, we’ll have another rollout in another community I can’t name, yet, and we’re talking to a couple of other existing angel groups about joining our group. We will be using our back office to manage deal flow, due diligence, deal negotiation and portfolio management. It is the same model with the Ka-Zoo Angels,” Parker said. “The best thing about it is we’re building bridges across the state. There aren’t any barriers to doing deals.” The second Wednesday of each month, the Grand Angels hold a pitch event for two or three entrepreneurs seeking equity capital in the morning, then they drive to Kalamazoo for an afternoon pitch. “Now, they’ll pitch in Detroit, too, though it won’t be the same day,” Parker said.

Fewer Michigan high school seniors

For CMU, that means expanding its recruiting efforts outside of the typical scope of a regional university. Davies said the Mt. Pleasant university is doubling its recruiting efforts in Illinois, Ohio and Wisconsin and expanding to places it hasn’t in the past, like Kentucky. It’s also being more audacious in

its use of scholarship packages and communicating that more clearly with potential enrollees. “I want to be clear that we’re not giving up on traditional-age students even though it’s a smaller pool,” Davies said. “We plan to recapture the market share of the students we’ve lost.” But Davies and the university’s board recognize to reach its goal of 25,000 students — its current class of undergraduate and graduate students is 21,705 — it must attract more nontraditional students as well. CMU operates six satellite campuses in Southeast Michigan alone and plans to expand the use of those locations by offering more continuing education programs for working professionals and expanded offerings for traditional-age students locally, Davies said. That includes expansion of hybrid programs, some classes online and in-person at the satellite locations, including more work experience toward college credits and eight-week programs instead of the traditional 16-week track. Major opportunity exists in adults who have some college, but no degree for universities struggling to attract traditional-age students. In Michigan, nearly 1.6 million people over 25 years old have some college credits but no degree — more than half of which reside in Southeast Michigan, Davies said. Getting those students, however, requires resources. University personnel have to identify those college dropouts, assess the needs of those potential students, then convince them to re-enroll in college. Davies said the university is shifting funds to accomplish that goal. Macomb Community College, and

others, want greater flexibility in reverse credit transfers, where students who took credits at four-year universities can transfer those credits back to community colleges. “There’s no reason those university classes couldn’t transfer back to Macomb,” said Sawyer. “The more we can recognize the effort that’s taken place, the more successful those students, and our education systems, can be.” While most universities and some community colleges are looking for older students, community colleges made major shifts toward younger students. Community colleges have pushed into high school for enrollment with more and more signing on to early college programs and dual-enrollment programs. Dual enrollment, where junior or senior high school students gain college credit by taking one or more classes at a local college while attending high school, is up 44 percent since 2013, according to Michigan DOE data. The number of students dual enrolled in high school and college was 28,711 during the 2017-2018 school year, up from 19,838 students during the 2012-2013 school year. “There is no such thing as a traditional college student anymore,” said Michael Nealon, vice president of academic affairs at Henry Ford College. “It’s very likely you’d find in one of our classes a student that is a dual-enrolled 17-year-old sitting next to a 42-year-old worker that’s looking to improve their skills.” Dual enrollment is up 12 percent year-over-year at Henry Ford College. The Dearborn community college has 3,000 dual-enrolled high school students, Nealon said. Those students can complete up to 45 credits through the program at classes online, at their high school or on Henry Ford’s campus. Nealon said keeping students enrolled at the college longer is part of its long-term financial strategy. “We have shifted our attention to retaining the students we do have than worrying about attracting new students,” Nealon said. “The average student leaves community college with 21 credits completed and transfers to a four-year university. If we can keep them long enough to fulfill the Michigan Transfer Agreement, which is 30 credits, we’ve essentially doubled our retention rate while better preparing the student for university at one-sixth the cost. Without increasing enrollment, we can increase the amount of work we’re doing. It

helps us, it helps those students and the indebtedness of the region. That’s a great strategy.” The Michigan Transfer Agreement allows up to 30 credits of general education courses from any community college in the state to transfer to any public four-year institution in the state. Macomb Community College has 750 dual-enrolled students, up from just 50 in 2010. It has 600 students in its early college program, which allows students to graduate with a high school diploma and an associate degree after the 13th year of schooling. But it’s the economics, or the economy, that’s impacting community colleges the most. Enrollment, particularly for older, working students, is counter-cyclical. When the unemployment rate is low — the unemployment rate in Michigan was 4 percent in December — community college enrollment lags. “Tell me what the unemployment rate is and I can tell you where enrollment is,” Hansen said. “Workers that get laid off typically recognize they need more skills and look to our community colleges for that education. That’s just not happening right now.” Community colleges are also struggling to enroll people in continuing education programs thanks to stagnating wages in certain sectors, Hansen said. “We’ve got people graduating those programs, then they realize there’s a manufacturing job that’s just over minimum wage hiring for third shift, 40 miles away,” Hansen said. “Or they can go to the McDonald’s around the corner and make nearly $15 an hour and set their own schedule. All this feeds into an already complicated demographics issue.” But Gov. Gretchen Whitmer’s call for a statewide goal of 60 percent of Michigan adults having a postsecondary education credential by 2030 during last week’s State of the State address soothed some of the worries for community colleges and universities. “These bigger efforts, statewide or nationwide, are hopefully going to really help,” Sawyer said. “I don’t think we’ll see significant growth, but there’s a recognition afoot that people do need some additional post-secondary education and that it’s becoming a lifelong learning environment. As we continue to build on that pipeline, we may see some mitigating to that decline in enrollment.”

Dan Gilbert’s roles both as a venture-capital investor with Detroit Venture Partners and with the Shinola Hotel — the hotel, which opened Jan. 2 at 1400 Woodward Ave., is a joint venture of Gilbert's Bedrock LLC and Shinola/Detroit LLC — raise the question of whether he would be involved with the Woodward Angels. Parker told Crain’s that there is a very prominent Detroit-area businessperson who is key to the launch of the Woodward Angels but said he didn’t have permission to name names. A Gilbert spokesperson did not respond to emails. The Woodward Angels fill a void in the angel-investment sector in Metro Detroit. The Great Lakes Angels were founded by David Weaver in 2002 but stopped holding monthly pitch meetings in the Detroit area with prospective entrepreneurs early in 2018. Crain’s reported last June that Weaver had joined Farmington Hills-based City

Side Ventures LLC as chief investment officer of a new limited-partner fund of $18 million it was hoping to raise, the Great Lakes Venture Fund LP. He said a fund allows investors to invest in portfolio companies without having to do the personal due diligence typically required by angel investors after they attend pitch events. “We do the heavy lifting for them and can deploy more funds over a greater number of deals than they can do on their own,” he said. Weaver said he hopes to announce a close on the fund in coming weeks. In recent years, early stage companies have had to rely more on angel investing because venture capitalists have grown more conservative, typically looking for companies already generating revenue instead of investing in startups. “This is news to me,” Weaver said when asked if he had heard of the Woodward Angels. “I will ask Tim to

share more about this and see if we can help. We are glad to see more angels get in this asset class, no matter with whom. Maybe Tim’s group can find folks that can be active. I hope so. There is room for us all,” said Weaver. The Grand Angels are fond of the limited-partner-fund model, too. Previously, they raised funds of $2 million and $7 million, which are fully invested, and are raising a third fund of between $15 million and $20 million. Angel investors can choose to do due diligence on their own investments or put money into a fund and let it do the due diligence and portfolio management, or, as is often the case, they can do both. The fund model has been spreading among angel investors. The Ann Arbor-based Michigan Angels have raised three $2 million funds, which co-invest with individual members in portfolio companies, and the Midland-based BlueWater Angels have

been raising a fund of $3 million to $5 million. In July, Grosse Pointe Farms-based Belle Michigan, a group of women angel investors, announced it was raising a $20 million fund, the Belle Michigan Impact Fund, to invest in early stage companies owned by women. The Grand Angels were founded in 2004 by prominent western Michigan banker Charles Stoddard and grew to prominence statewide under the leadership of Jody Venderwel. An attorney at Herman Miller Inc., the Zeeland-based furniture maker, she was recruited in 2005 to serve as president of the Grand Angels. In 2016, she was named by Crain’s as one of the 100 most influential women in Michigan. Later that year she stepped down as president and was replaced by Parker.

The number of high school seniors has been in steady decline for the last decade, dropping 16.43 percent since 2008.

12th-grade students statewide

COLLEGE

150,000

145,097 121,253

120,000 90,000 60,000 30,000 0

’08

’09

’10

’11

’13

’14

’15

’16

’17

SOURCE: MICHIGAN DEPARTMENT OF EDUCATION

lier this year, former MSU President John Engler said the rising share of in-state students is largely tied to a decrease in the availability of international students, partially related to anti-immigrant rhetoric from the White House and because education systems in places like China are modernizing. But Davies said institutions with declining enrollment, such as CMU, are also to blame for their troubles. “Part of our brand is a personalized approach to education, but

“Part of our brand is a personalized approach to education, but we’ve lost that in our recruiting efforts over the last 10 years. We’re bringing that back.” — Robert Davies, CMU president

we’ve lost that in our recruiting efforts over the last 10 years,” Davies said. “We’re bringing that back. We need to be more aggressive than we have been.”

Responding to the squeeze

Dustin Walsh: (313) 446-6042 dwalsh@crain.com

Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

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Lions intrigue season-ticket holders at annual summit By Bill Shea bshea@crain.com

The Detroit Lions lost 10 of their 16 games last season. That’s known among cynical fans as SOL, or “Same Old Lions.” Last Tuesday, the team’s key leadership troika — President Rod Wood, General Manager Bob Quinn and Coach Matt Patricia — promised more than 3,200 season-ticket holders invited to Ford Field that hard work will bring better times — a seemingly annual pledge for a franchise still on a quest for its first championship since 1957. The three leaders took questions from some of those season-ticket holders during the team’s annual summit for fans who buy tickets for all 10 home games. Some said they’d had season tickets for 40 years, and others were brand new. The questions ranged from the draft and free-agency to roster moves, coaching changes, game strategies and ticket programs. The panelists offered answers that ranged from deeply specific to long diversions. Some they could not answer because league rules prohibit talk about players under contract with other teams. The general tone was stick-with-us optimism little more than a month after a season that featured an exciting win over the eventual Super Bowl champion New England Patriots, but plenty of low points such as a blowout loss to the New York Jets on national TV. “I think there are reasons to be optimistic as we go into the offseason,” Wood said, noting that the Lions defense improved as the 2018 season wore on, and that the team has nine picks for the April 25-27 college player selection draft. It was an early question about the draft that produced possibly the most interesting comment of the night. Quinn was asked about the possibility of drafting a quarterback. The Lions have had Matthew Stafford under center for a decade, and he owns nearly every team passing record and is the highest paid player in team history — $178.2 million so far with $84 million still owed — but he has yet to win a playoff game. “We’ll consider any position in the draft at any point in time. The whole board is wide open to us. We’re not going to eliminate any prospects. If there’s a quarterback out there we deem could help us this year or in the future, we’ll never close the door on that,” he said. That doesn’t mean the Lions are going to draft a quarterback, and general managers are political in their answers so they don’t tip their hands, but it certainly sparked plenty of parsing of his comment. Quinn indicated that the Lions will look hard at drafting a tight end to replace Eric Ebron, who left in free agency before last season and left a noticeable gap in the offense. Why does management willingly assemble fans to take such questions? Apart from basic customer service perks, it’s because season-ticket holders are a critical revenue source for the franchise, and since Wood assumed his role in 2015, adding off-field value has been a primary business strategy. NFL teams cull most of their revenue from the league’s national TV broadcast rights contracts with the net-

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DETROIT LIONS

Fox 2 sportscaster and Detroit Lions play-by-play radio announcer Dan Miller (left) moderates a panel with (left to right) team General Manager Bob Quinn, coach Matt Patricia, and team President Rod Wood on Tuesday during the annual season ticket holder summit on the turf at Ford Field.

works. Those billions are apportioned equally among the 32 franchises. Revenue from the shared licensing deals also generates considerable money. Fan-generated revenue is important because teams have some control over that. Fielding a winning team falls to the GM and coach, to acquire talent and properly deploy it. The off-field money, however, is where Wood comes in. His tenure has included a $100 million renovation of Ford Field that replaced all of the suites and club seats, added more club and concession spaces, bolstered Wi-Fi, and installed new sound and video systems. And the overhaul was entirely privately financed. The team has said it has more than 40,000 season-ticket holders in a stadium that seats 64,500. Those fans recently received their 2019 season ticket renewal information. Of the 63,223 seats available for season-ticket sales — the rest are suite seats — the team said 57,124 will see no price change or actually be cheaper in 2019. There will be 5,099 seats, all in high-demand areas along the lower bowl, that have increased in prices. Of those, 1,579 have increased by $5 or more per game for next season. More specifically, one tier of seats is now priced at $1,519 for the season (two preseason and eight regular-season games), an increase of $170 over last year’s $1,349 price. The other increase is $50 for the season on seats now priced at $1,299 for the 10 games. The Lions didn’t provide a breakdown of how many of each seat are getting the two price increases, but if all 5,099 seats were priced at just the $50 increase, it would mean $250,000 in new revenue for the team. However, four tiers of seating have declined by $20 or $30 for the season, so some of the revenue goose is likely offset by those discounts. Any increase in season-ticket revenue is marginal for a team estimated by Forbes to have collected $361 million in revenue for the 2017 season, the most recent estimate available from Forbes. Last year, each NFL team collected about $255 million from the league’s shared revenue, based on financial disclosures made by the publicly owned Green Bay Packers. So while fan-based revenue isn’t that large, teams still tend to exercise caution in raising ticket prices after a losing season, for fear of backlash. The most expensive Lions seat for the 10 home games in 2019 remains

unchanged year-over-year at $1,949, and the cheapest remains $439. That works out to $194.90 per game for the priciest season ticket to $43.90 for the cheapest. For years, the Lions have ranked in the bottom half of the 32team NFL for ticket prices. Season tickets have a baked-in discount compared with face value of single-game tickets. The discount is an enticement to get fans to buy season tickets — revenue that the team gets up front. NFL teams are heavily cash-in, cash-out businesses and teams are constantly working on keeping revenue flowing to cover salaries and operations. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

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Operators of the Lexus Velodrome, at I-75 and Mack Avenue, view it as the fourth largest sports venue in metro Detroit and seek to establish it as the most dynamic community center in the area. LEXUS VELODROME

VELODROME As a place for unique experiences, the Lexus Velodrome could be considered one-of-a-kind, and it enters a market ripe with consumers who crave something different. It joins “concept” establishments such as the Fowling Warehouse in Hamtramck, TopGolf in Auburn Hills and ax-throwing joints, which give patrons an immersive experience not found at your average bar or bowling alley.

cost $79 for a month of unlimited access and $379 for a year. To use the facility for noncycling activities, there is a one-time $5 fee and then $20 for five visits or $30 for 10 visits. Three big events last year — Detroit Homecoming, produced by Crain’s Detroit Business; the Accelerate Michigan Innovation Competition; and the Detroit Historical Society gala — also provided a significant portion of revenue. Hughes said the venue generally charges $10,000 for a full, one-day rental, depending on the intended use of the facility.

Peddling new activities

Cycling in events

FROM PAGE 3

The Detroit velodrome hosts a weekly disc golf session with portable baskets and mid- to short-range shot competitions. There are also roller derby, speedskating and bike polo. That’s in addition to the standard fitness offerings of running, walking, yoga, pilates, dance fusion and cardio kickboxing. “When I designed the interior of the space, I designed it with the ability to do different activities,” Hughes said. In October, the velodrome opened a bar to goose revenue and provide an amenity for patrons. Aptly named, the SpokeEasy Lounge is open 5-10 p.m. Tuesday-Saturday, serving $3-$6 beers, $7-$8 cocktails and $5 glasses of wine in the center of the velodrome. Food trucks are on hand during event days. The bar is run by the nonprofit and has grossed around $50,000 since opening, with most sales made during race days. Hughes said the bar is a nice boon to business but is not the main focus of the community center. “We absolutely needed the lounge for a revenue generator,” Hughes said. “We don’t ever expect to be a HopCat.” About half of the velodrome’s revenue comes from user fees, tickets, special events and the bar. Tickets for races start at $10, and there are 22 suites (10-person) available on a per-race basis for $200. Public cycling passes

When the Detroit Historical Society hosted its 20th annual black-tie event at the velodrome in December, it was the first time it was hosted in a building that was not historic, said Rebecca Witt, chief development and communications officer for the nonprofit. The evening event took two days to set up and involved removing part of the cycle track to bring in a stage and seating, Witt said. There were concerns about acoustics and creating a formal atmosphere, but the party went on without a hitch, Witt said. The nonprofit contracted Clinton Township-based event planner Elysium Experience to handle sound and stage production. As part of the rental, riders put on a racing exhibition for the 400 guests at the center of the track. “They got into it. We had all these folks in formal dress, standing up and cheering the cyclists,” Witt said. “What you look for is, did your guests have fun, was it a memorable evening. I think in terms of the venue, it made for a memorable evening.” Other revenue for the venue came from sponsorships by the Detroit Medical Center, Diversified Members Credit Union and Lexus, which is the naming rights sponsor. The naming rights deal is $300,000 per year for four years. The other two deals are for

$150,000 annually for three years. Lexus is pleased with its sponsorship investment — its largest and most prominent in the market, said Curt McAllister, Midwest public relations manager for Lexus. Its return on investment has been twofold, McAllister said. First, having its name painted to the side of the dome facing I-75 has increased exposure, which boosts brand recognition and has a residual impact on sales. Secondly, support for a community center builds its image as a good corporate citizen. “What we’re seeing first of all is visibility, and the crowds speak for themselves,” McAllister said. “One of our mantras is being part of the community fabric. We are in fact doing that now.” Hughes’ goal of adding three more sponsors and boosting the events business this year is critical if he wants to realize his broad vision for the business. He said he is in talks with potential sponsors and aims to host a dozen big events this year.

Focus on youth

Myrna Capela said the Lexus Velodrome has done more than benefit the community in a general sense; it’s directly improved the lives of the kids who use it. Capela, a 45-year-old attendance agent at Mary McLeod Bethune Elementary-Middle School in Detroit, started bringing her 14- and 16-year-old boys to the track, along with 30 or so others she rounded up from Bethune. “It makes me wanna cry when I think about the impact it’s had,” Capela said. “I started bringing my kids there and thought, this would be a great way to incentivize good behavior.” Many of the students with whom Capela works have troubled lives outside of school, she said, and the velodrome has offered a rare source of stability. For one student in particular, cycle racing led to a turnaround in his

home and school life. “He went from getting marked up and in trouble to almost a model student,” she said. “Still, that’s a struggle, but now he’s closer to wanting to do well academically. He’s more connected, and he’s tuned in. It’s made such a difference in his whole household.” Capela takes as many students as she can to the velodrome on Mondays, Wednesdays and Fridays from 3-5 p.m., when the track is reserved for open riding for those 17 and under. The nonprofit provides equipment, rental bikes and track time for no cost to the kids. Overall access to the velodrome, including races and noncycling activities, is free for youth as well. Hughes has even helped fund trips to out-of-state competitions, such as the National Junior Championship in Pennsylvania. Hughes plans to grow the summer camp programs, which are available to kids age 3-17 and teach everything from how to ride a bike to how to race in a velodrome. Those interested can find more information on the venue’s website.

Big vision

Track cycling has been around since the late 1800s, but despite the general popularity of cycling around the world, it remains a niche sport in the U.S. Hughes sees it a different way. “Pro sports don’t tend to get a lot of access out of the U.S.,” he said. “Cycling is a worldwide sport.” The velodrome is the one of the largest sports venues in metro Detroit, Hughes said. He pointed out that it’s the only one where a $10 ticket puts you literally in the center of action with reasonably priced drink and food options. In other words, he’s making a play for weary Red Wings, Pistons, Tigers and Lions fans — and why not, given the teams’ chronic and worsening inability to captivate? “I think we are getting more eyeballs watching our activity than maybe even

some of the pro sports teams,” he said. Around 35-40 riders regularly compete at the velodrome, which hosts several races each month. Participants are comprised of amateur local riders as well as some of the best in the country. National champions such as Justin Butsavage of Pennsylvania and Zachary Kovalcik of Oregon frequent the velodrome. Popular types of races include sprints, which usually are 8-10 laps on the one-10th mile track, and more lapheavy endurance races. With cyclists hitting speeds up to 40 mph, events are high-energy and high-stakes, with broken collarbones and wrists as common as wrecks on a race car track. Championship race winners take home $5,000 in prize money. “There’s an aspect of NASCAR here,” Hughes said. “Here on our track, we don’t mind having some close calls ’cuz it gets the ‘oohs and ahs.’ It’s when they actually fall that we worry.” Track cycling is part of the summer Olympics, and there are multiple world championship events each year. Despite ongoing efforts by various organizations to start a full-fledged professional league, track cycling just hasn’t had the traction to support a model like other popular sports. At the Lexus Velodrome, Hughes is convinced he’s onto something that could change this. “We think this model can be duplicated,” he said. “We want five other locations — Boston, Denver, New York — that we’re going after now.” The vision is to build a professional league in Detroit by bringing on more riders with the support of new sponsors, and then exporting the model, community center and all, across the country. The first expansion could happen as soon as 2021, Hughes said. “Our outreach is going to be interesting,” he added. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

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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

REPORTERS

OAKLAND UNIVERSITY WILLIAM BEAUMONT SCHOOL OF MEDICINE

Melanie Mayberry, D.D.S. (left), Arati Kelekar, M.D., and Nelia Afonso, M.D., work together at the Clinical Skills Center on the interprofessional curriculum for OUWB and Detroit Mercy.

PARTNERS FROM PAGE 3

Aksu said he has wanted a partnership with a medical school the past eight years to complement clinic-based training for third and fourth-year students at UDM’s two main clinics in Corktown and at University Health Center on the campus at Detroit Medical Center. It also has community-based dental education partnerships with several federally qualified health centers in Southeast Michigan, including Hamilton Community Health Network in Flint and Covenant Community Care Network in Detroit. It also has a partnership with Cherry Health in Grand Rapids. “We can improve patient outcomes if dentistry is involved at the get-go. When we see patients early we create an integrated oral health plan and can predict symptoms with oral diseases,” Aksu said. “It wasn’t easy with our two calendars, getting our (class) schedules aligned. “With medical students, they graduate and go into residency,” Aksu said. “We prepare dental students for graduation and they then go to licensure and out to practice.” And as payers move toward value-based payment programs that reward providers for improving health, doctors and dentists will more often in the future be paid based on patient outcomes. “Patients can improve with integrated care and practicing doctors and dentists will see the value in working together,” Aksu said. Folberg said there are many reasons doctors and dentists should communicate better. One is there is no excuse for more than 1,000 children in Michigan going to sleep with a toothache. He said more collaboration in practice could address this

“They will learn each other’s roles, what they bring to the table. There is a disconnect of the link to diabetes from poor oral health, how poor oral health affects pregnancy and implants of hip and knee joints.” Melanie Mayberry, D.D.S.

problem. “It took a long time to (collaborate) with Detroit Mercy, but we have a pathway now,” said Folberg. “Dentists can be a gateway to primary care. Originally, in the early 20th Century, dental was a part of medicine until it separated. In a way it is still separated. We need to change that, and our partnership is one step forward.”

Joint teaching plan Second-year Detroit Mercy dental students will learn communication skills and patient encounters side by side with second-year medical students at the OU-William Beaumont clinical skills center at Beaumont Hospital in Troy, Aksu said. Melanie Mayberry, D.D.S., chairperson of the department of oral health and integrated care at Detroit Mercy, said the interprofessional education courses will be held for the first group of students on March 13. A second group will meet in June. The students will interact with trained standardized patients who will learn how to communicate with each other

and recognize when a condition requires contact with another care provider. “They will learn each other’s roles, what they bring to the table,” Mayberry said. “There is a disconnect of the link to diabetes from poor oral health, how poor oral health affects pregnancy and implants of hip and knee joints.” Mayberry said the students will be taught when to reach out to a different care provider for consultation. “We are teaching dental students now to ask medical questions” of their patients, Mayberry said. “Dentists routinely take blood pressures and do medical consultations with medical providers on smoking, diabetes, high blood pressure. ... They don’t diagnose. ... For patients with no provider, they offer suggestions (for) where they can go” to receive primary care. Mayberry said the two schools decided to partner to not only to break down training barriers but also to improve patient care. “It is awesome to bring the skill sets of students together for training and education with the sole purpose of improving patient care, outcomes and experience,” Mayberry said. “It is not a common occurrence (for medical and dental schools to work together.) You would think there would be more synergy and partnership, but there isn’t.” Over the past several months, Mayberry also has been working closely with medical school counterparts Arati Kelekar, M.D., and Nelia Afonso, M.D., to develop the curriculum. Alonso, an OU-Beaumont medical school professor and assistant dean of community integration and outreach, said patients seen by the medical school have complex health needs that typically require more than one discipline to address their health status.

“Interprofessional education also helps break down stereotypes about another profession’s identity and improve teamwork in clinical practice,” said Alonso. “We expect these foundational learning experiences will create a culture of collaboration and forge further joint clinical collaborations to provide students with a better understanding of the link between a patient’s oral health and systemic health.” Aksu said the coursework will also include difficult communication issues such as delivering bad news, pain-management communication and intimate-partner violence. “Most physicians don’t understand the importance of oral health. They receive little training in medical school,” Aksu said. “We believe this program will improve the understanding in the medical world of regular dental visits and the impact good oral health can help outcomes.” Folberg agreed. He said dentists can help medical students and practicing obstetricians understand the value that good oral health has on prenatal care. “We need to build trust in the very beginning, but we all understand the value is to improve overall health” of patients, he said. Mayberry said she has high hopes that 15 to 20 years down the road the training experiences learned by dental and medical students will pay dividends with improved patient outcomes. “As doctors and dentists leave school and enter practice they tend to accept practice behaviors they are taught in training,” Aksu said. “This will open themselves up to a new way to practice and promote a much more integrated system.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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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LIGHTRX FROM PAGE 3

Since 2016, the AG has received 10 consumer complaints against LightRx with only two responses from the company. However, the Eastern Michigan Better Business Bureau has received more than 219 complaints in the past two years about LightRx from customers in Michigan and other states. “We are troubled that LightRx Face and Body has failed to respond to numerous consumer complaints that have been forwarded from this office,” according to the letter from Darrirr Fowler and Ashlee Lynn, assistant attorneys general in the AG’s corporate oversight division. “Our concern, and attention, are growing due to information we recently obtained from the Better Business Bureau about financial problems your company is experiencing.” The AG noted that Morgan, as president of American Laser Centers, also received many consumer complaints before it closed. “Many of these complaints involved the collection of money shortly before American Laser Centers closed its doors,” Fowler and Lynn said in the email to Morgan. “A repeat of this type of situation will be intolerable and may expose LightRx’s officers to personal liability should the company be unable to meet its commitments and financial obligations.” Brandi Ford, advertising review and investigation manager with the Eastern Michigan Better Business Bureau, said most of the 219 complaints about LightRx, which dropped out as a member in 2018 and currently holds an “F” grade from the bureau, are about paying for services, not receiving them and having a difficult time with refunds. In 2017, Ford said there were 37 complaints filed against the company that included Michigan customers and its nationwide operations. But in 2018, the complaints increased, with 175 filed. Of those, 30 were resolved, 90 answered, 43 unresolved and seven no responses, she said. “For their industry, we only have one business to compare with (Midwest Laser Institute, New Baltimore) in our service area, but they (LightRx) account for 80 percent of complaints,” Ford said. The bulk of complaints, which are filed with the Eastern Michigan BBB but also originate in other states, revolve around problems receiving refunds. Some complaints involve poor service and unfulfilled promises of weight loss, she said. “Consumers pay for services, be it laser or hair removal, fat (cellulite) reduction and once they pay for so many sessions the locations (where they were to have appointments) closes,” Ford said. “They pay for services they never received. They try to get their money back and it is hard to get it refunded. There are very few refunds.” LightRx does not list prices for its many services, including medical weight loss, body contouring, laser lip, cellulite reduction, skin tightening and resurfacing and laser hair removal. One example is a “total transformation without surgery” package for $999 “per area.” On its website, LightRx offers various discounts, including $250 off any package of services and 70 percent off certain packages. It also offers financing options through The HELPcard, a Draper, Utah-based credit card company through the Bank of

LIGHTRX LIVONIA VIA YELP

One of LightRx’s shuttered clinics in Livonia.

“Consumers pay for services, be in laser or hair removal, fat (cellulite) reduction and once they pay for so many sessions the locations (where they were to have appointments) closes. They pay for services they never received. They try to get their money back and it is hard to get it refunded. There are very few refunds.” Brandi Ford

Missouri. The card has a $59 annual fee and 29.9 percent annual percentage rate. Ford said she talked with Morgan and his team on Nov. 19 and they acknowledged closing stores and having financial issues. “We strongly caution LightRx against collecting money from Michigan consumers for goods and services it may not be able to deliver,” Fowler and Lynn said. “When a company cannot deliver goods or services for which it has accepted money, refunds are legally required.” The AG’s office is responsible for enforcing the Michigan Consumer Protection Act that prohibits a range of unscrupulous business practices, including deceiving, misleading or overcharging customers and failing to refund clients based on terms of an agreement. Ford informed the AG that LightRx has closed more than one-third of its 100 locations nationwide in 22 states and is in the process of closing a half-dozen more, the AG’s office told

Crain’s. The company operates eight locations in Michigan, including six in Southeast Michigan, according to its website. Since last summer, however, Crain’s has learned that LightRx has closed offices in Shelby Township, Livonia, Brighton, West Bloomfield Township, Ann Arbor and Grand Rapids.

“Movie star” beauty fad Health experts have always recommended people use diet and exercise as tried-and-true methods to lose weight, trim up and feel better. However, over the past several years, fat-dissolving and skin-tightening procedures for body contouring have been marketed in magazines and touted by movie stars. The nonsurgical procedures seem less invasive and appealing when weighed against surgery. But plastic surgery also has evolved over the years with medical doctors further specializing in face, hands and body reconstruction. Bill Stefani, M.D., a private practice plastic surgeon and president of three-physician Spa Renaissance & Renaissance Plastic Surgery in Troy, said his practice has interviewed a half-dozen former workers from LightRx, mostly from the company’s nearby Troy office. “Most of the procedures they do are pretty benign and safe. Laser hair removal, skin smoothing and cellulite reduction,” Stafani said. “They try not to be too aggressive so they don’t run into problems. Most treatments are not very aggressive.” But Stefani said nonsurgical approaches to fat or cellulite removal don’t significantly achieve the results most people expect. “They are not going to bring the results they advertise and bring you back to the non-injured state you were in before,” he said. Stefani said every week former LightRx clients walk into his spa and plastic surgery center asking for help.

“They were treated and didn’t get the results they wanted or they received changes they didn’t anticipate and now we have to do corrective therapy,” he said.

History of bankruptcy, consumer complaints Crain’s reported in 2011 that American Laser Centers closed 50 offices and filed for bankruptcy and in 2014 American Laser Skincare, a successor company, also filed for bankruptcy. Founded in 2002, American Laser Centers was at one time one of the nation’s largest hair-removal and body sculpting chains. The company also provided skin rejuvenation and cellulite-reduction therapy. Morgan, a former grocery store manager, was involved in both enterprises. Based on LARA corporate records, dozens of corporations are listed with LightRx as their names, based in Farmington Hills with Morgan listed as resident agent. Morgan was described for a 2007 story as an entrepreneur who searched for “an industry or market in which he could make money and, more importantly, not have a boss.” He tried marketing and technology before watching TV shows like “Extreme Makeover” and “The Swan” and discovering many people would pay big money to change their looks without the work of diet and exercise. ALC emerged from bankruptcy in 2012 as the Philadelphia-based private equity firm Versa Capital Management acquired the company for an undisclosed amount and reformed as American Laser Skincare, also of Farmington Hills. But in November 2014, American Laser Skincare closed 100 clinics, including 11 in Southeast Michigan, after investors decided to pull out. It filed for bankruptcy the next month. At the time, the company employed about 1,000 workers nationally. In December, 2015 BCA Acquisi-

tions LLC filed articles of incorporation with Michigan Licensing and Regulatory Affairs with Richard Morgan as the registered agent under the various assumed names, including LightRx and Body Contour Ventures LLC.

What does LightRx do? LightRx bills itself as a medical spa that offers non-surgical procedures, including body contouring, cellulite reduction, skin care and laser hair removal services. According to the company’s marketing materials: “Whether you want to drop a dress size, melt fat, target cellulite, tighten skin or turn back the hands of time, or say goodbye to unwanted hair, our team will customize a plan using the latest medical devices to help achieve your goals.” LightRx offers laser liposuction by using “laser lipolysis technology to break down fat cells without surgery, pain or downtime.” It also discloses that radio-frequency therapy for excess fat removal has not yet been approved by the FDA, but is regularly used for body contouring in dermatology. Stefani said because non-surgical medical spas like LightRx have very high capital needs to acquire the latest equipment, they use a very aggressive sales pitch to generate revenue. “People read about the newest laser in a magazine and a star says how great the results are, but people never get the results that are advertised,” Stefani said. LightRx sells people a package of six or eight treatments for $1,000 and people aren’t satisfied with the results, Stefani said. “They are told, ‘Your skin is different, and you need to buy more.’ So they put another $1,000 into it. It is snowballing out of control,” he said. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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THE WEEK ON THE WEB

RUMBLINGS

Garden Fresh founder bids to buy company back from Campbell Soup Co.

Suh buys Birmingham condo for $1.9 million

FEBRUARY 8-14 | For more, visit crainsdetroit.com

ack Aronson, the founder of Garden Fresh Gourmet, is attempting to buy back the Ferndale-based business four years after selling it to Campbell Soup Co. for $231 million. It’s not about the money for Aronson. His motivation is to keep the company in Ferndale and to preserve jobs for the roughly 450 people who work there, he said. “While I decided a few years ago to sell Garden Fresh so that I’d be in a position to invest more into our community, the company has always remained my baby, and I worry about it,” he said. “I worry that Garden Fresh could end up in the wrong hands, that it could be moved out of town. ... or that it could end up in the hands of a suitor ... with no salsa experience (who) will run it into the ground.” Aronson said he’s heard that among the companies bidding on the salsa, hummus and tortilla chips business is an out-of-country interest that could move production out of Michigan and out of the country. “I can’t let that happen,” he said. Aronson and two other investors have formed TriPower Capital LLC: Dave Zilko, former vice chairman of Garden Fresh, who grew its sales to $110 million and had a minority stake in the company before the sale to Campbell; and Metro Detroit native Robert Sharpe II, who has more than 20 years experience in top executive roles at global food and consumer goods companies including Smithfield Foods, Campofrio Food Group and CSM Bakery Solutions. TriPower is among the final three under consideration to buy Garden Fresh, Aronson said. If successful in their bid to buy back Garden Fresh, “we’ll bring the luster back to Garden Fresh ... we’ll keep existing Garden Fresh jobs and we’ll create even more,” he said. Campbell declined comment.

BUSINESS NEWS J The long-vacant Lee Plaza tower on West Grand Boulevard in Detroit is expected to be sold for redevelopment. It’s been empty more than 20 years, stripped by scrappers and exposed to the elements. But the Roxbury Group, which plans to buy Lee Plaza from the city for $350,000 under a joint venture with Ethos Development Partners, is still trying to temper any immediate jubilation. “I like to kind of measure people’s expectations, frankly ... this is the start of a long process,” said David Di Rita, a founder and principal of the Roxbury Group. The sale must still be approved by City Council. The two Detroit-based development groups plan 180 residential units in the former swanky apartment-hotel that originally opened in 1928. At least half would be affordable for those earning 80 percent or less of the area median income, the city said in a news release Thursday morning. It could cost $50 million or more to restore the building, Di Rita said. J General Motors Co. and Amazon. com Inc. are in talks about investing in

The long-vacant Lee Plaza tower on West Grand Boulevard in Detroit is expected to be sold for redevelopment.

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

$2.7B-plus Amount it would take to fix Michigan’s roads

$224M

Price tag for the second phase of the I-75 Modernization Project, which will close lanes on the freeway in Oakland County starting next month

60%

Gov. Gretchen Whitmer’s goal for Michigan adults to have a postsecondary education credential by 2030

electric vehicle maker Rivian Automotive LLC in a deal valuing the Plymouth-based startup at $1 billion-$2 billion, people familiar with the matter said. The startup is working on an electric pickup and sport utility vehicle and debuted concept versions at the Los Angeles Auto Show in November. J Detroit restaurateur Dave Kwiatkowski, known for Sugar House bar in Corktown and Wright & Co. downtown, bought a two-story building at 4639 Michigan Ave. in southwest Detroit that he plans to turn into a Korean watering hole and chef’s-choice sushi counter. J Detroit Mayor Mike Duggan said Wednesday that he believes his federal lawsuit challenging the constitutionality of no-fault auto insurance is the “winning play” even as he continues to wage a reform battle in the Michigan Legislature. He made the comments to reporters after testifying before the Senate Insurance and Banking Committee on medical costs driving up the cost of insurance. J Automotive engine and powertrain components supplier BorgWarner Inc. is growing its pipeline of new business thanks to hybrid-vehicle growth in expansion into China. The Auburn Hills-based company reported a new business growth of $430 million to $580 million in 2019, $750 million to $875 million in 2020 and $800 million to $950 million in 2021. J Kelly Services Inc. reported a net loss of $23.9 million in the fourth

quarter, dragged down by a decline in the stock price for Japanese temporary staff company Persol Holdings. Earnings from operations for the fourth quarter rose 17 percent to $33.1 million. J Adastra Corp., a global data management and analytics company based in Markham, Ontario, plans to open its first U.S. office in Detroit in a third-quarter move that will create 20 jobs. The company wants a permanent office located in downtown Detroit, but for now, it is using shared space at WeWork on Woodward Avenue. J Royal Oak City Commissioners voted 4-3 last week to allow the city to bump up the amount it’s paying construction manager Colasanti Construction Services for a 581-space parking deck expected to open in June as part of the controversial downtown Royal Oak Civic Center project. J Construction on I-75 in Oakland County is set to ramp up again next month with an 8.5-mile overhaul that includes the state’s first carpool lane and two more interchange projects. Segment two of the nearly $2 billion I-75 Modernization Project will include redoing the freeway from Coolidge Highway to 13 Mile Road. The Michigan Department of Transportation is aiming to start in midMarch, but work will be dependent on the weather.

SPORTS NEWS J Larry Murphy, a Stanley Cup-winning ex-Red Wings defenseman and familiar face in the broadcast booth, returned to Fox Sports Detroit as a game and studio analyst for the team five years after being fired from the network. His first game back was Thursday, when the Wings played the Ottawa Senators at Little Caesars Arena. J Detroit City FC will play its first game in the National Professional Soccer League’s Founders Cup this summer, marking its official transition to the professional level. The semi-pro soccer club, based in Hamtramck, takes on Miami FC on Aug. 10. J Last week, the Lions’ key leadership troika — President Rod Wood, General Manager Bob Quinn, and Coach Matt Patricia — promised more than 3,200 season ticket holders invited to Ford Field that hard work will bring better times. The team revealed that it would be limiting season ticket cost increases and reducing other seat costs.

he swank Brookside Residences condominium project in downtown Birmingham has a pretty high-profile buyer. Former Detroit Lion Ndamukong Suh paid $1.9 million for a unit in the 26-unit under-construction development late last month, according to Oakland County land records reviewed by Crain's. The purchase shouldn't surprise anyone. Although he has had some lessthan-glowing comments for his former teammates, he has long expressed admiration for the region and its residents. “I’ll refrain from my comments about the (Lions),” Suh said in a November Detroit Free Press article. “Like I said, the city is an amazing city, great people there. I look forward to seeing a bunch of people. I’m glad we’re going in on a Friday so I have some time to catch up with folks, but refrain from the organization to say the least.” He also continues to maintain business interests in the area after his career with the Honolulu Blue, Crain’s reported in November. He regularly stays down the street from his new pad in The Townsend hotel. In addition, Suh is active in real estate investment and has money in developments here, Bloomberg reported in March 2016. Suh, 32, now plays for the Los Angeles Rams. The deed to the condo was

recorded with Oakland County about a week and a half before his Los Angeles Rams’ 13-3 Super Bowl LIII loss to the New England Patriots Feb. 3. The second pick in the 2010 NFL Draft played with the Lions until 2014, when he signed with the Miami Dolphins. The Stephen Ross-owned team released him a year ago, and he subsequently signed with the Rams in a oneyear, $14 million deal. Brookside Residences on Old Woodward Avenue is being developed by Birmingham-based Alden Development Group LLC. The company’s owner and founder, Matt Shiffman, said in a statement to Crain’s: “Regarding any public record or rumblings, ADG’s policy respects the privacy and anonymity of our clients at Brookside and other developments, therefore we don’t provide any comment on these matters.” An email was sent to Ngum Suh, the player’s older sister and business manager, seeking comment. Prices for the condos start at $1.7 million and they range from 2,200 to 4,000 square feet, according to the development’s website. Suh’s previous home in Birmingham, where quarterback Matthew Stafford also lives, sold in 2015 to Suburban Collection Chairman and CEO David Fischer, who is President Donald Trump’s nominee to be U.S. ambassador in Morocco.

LARRY PEPLIN FOR CRAIN’S

The Corner Ballpark is Detroit PAL’s $19.5 million redeveloped project that added a 2,500-seat stadium, baseball diamond with dugouts and locker rooms, and the nonprofit organization’s headquarters at the corner of Michigan and Trumbull

DCFC to host MSU at old Tiger Stadium site

etroit City FC will play a preseason friendly against the Michigan State University men’s soccer at the The Corner Ballpark — the site of former Tiger Stadium — at 5 p.m. April 20. The semi-pro soccer club, which plays home matches at Hamtramck’s Keyworth Stadium and will turn pro later this year, said it will sell the MSU match tickets for $5. The match isn’t included in season ticket packages, the team said. The Corner Ballpark is Detroit PAL’s $19.5 million redeveloped project that added a 2,500-seat stadium, baseball diamond with dugouts and locker rooms, and the nonprofit organization’s headquarters at the cor-

ner of Michigan and Trumbull. Also going up at the site is a $30 million mixed-use development that includes four stories of 111 apartments, ground-floor commercial. The Tigers played at the corner from 1912 to 1999, during which time the ballpark also was called Navin Field and Brigg’s Stadium. The Lions played there from 1938 to 1974. The stadium was torn down in 2008-09. Tiger Stadium was home to the Detroit Cougars pro soccer club in 1967-68, a team made up of players from Glentoran F.C. in Belfast, Northern Ireland. DCFC beat Glentoran 1-0 in a friendly two years ago in Hamtramck to mark the 50th anniversary of the Cougars.

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