Crain's Detroit Business, Sept. 23, 2019 issue by Crain's Detroit Business

Q&A with Wendy Cox, president and director of Greenleaf Trust Page 10

SEPTEMBER 23 - 29, 2019 | crainsdetroit.com RETAIL

Vape sellers: Flavor ban will put us out of business

Flex-space research park project slated for Ann Arbor Page 3

DETROIT HOMECOMING VI

Stores draw support from SBAM in fighting ban’s process By Dustin Walsh dwalsh@crain.com

Michigan e-cigarette retailers have circled Oct. 2 on their calendars. That’s the day a 14-day clock stops ticking for them to stop selling flavored nicotine e-cigarette products under emergency rules issued last Wednesday by the Michigan Department of Health and Human Services. Gov. Gretchen Whitmer ordered the move in the wake of a nationwide outbreak of lung illnesses that has caused more than 500 hospitalizations and seven confirmed deaths as of Thursday. Use of the devices and the candy and fruit flavor they feature has also become an epidemic among teenagers. Retailers that have opened hundreds of dedicated “vape” stores across the state say the ban amounts to putting them out of business. Users of e-cigarettes inhale vapor from a heated liquid, often containing nicotine, instead of smoke. That liquid comes in a huge variety of flavors, from cotton candy to a traditional “tobacco” flavor. Many believe they are safer than combustible tobacco, but they haven’t existed long enough to put that to the ultimate test. The Centers for Disease Control and Prevention has estimates that 27 percent of teenagers have used e-cigarettes, double the share who have tried regular cigarettes. Under the rules, selling a flavored vape product, aside from tobacco flavor, could result in a misdemeanor charge, punishable by a $200 fine and up to six months in jail. The ban is effective for 180 days, which can be extended another six months. SEE VAPING, PAGE 35

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DETROIT’S 40-SQUARE-MILE QUESTION — AND OPPORTUNITY Vacant land is a big asset to a city — it’s a matter of assembling it

“W

hat are you going to do with that 40 square miles?” Asked no city planner ever. But Ken Buckfire wants to know. The Detroit native-turned-New York investment banker who played a pivotal role in Detroit’s bankruptcy says answering the question about how to leverage vacant land in the city should be Detroit’s primary public policy focus to prevent a second trip to bankruptcy court.

CHAD LIVENGOOD

The blocks and blocks that are now vacant are often thought of as a problem. Buckfire sees it as an opportunity no other city has. “I think that’s the greatest strategic asset of Detroit,” the president and managing director of investment banking firm Miller Buckfire & Co. said Thursday in a panel discussion at Detroit Homecoming VI. “It actually is a way for Detroit to leapfrog over every other city in the country competing for

jobs, including Chicago, if it finds a way to use that land intelligently to attract residents and industry.” Buckfire is raising the question of what is Detroit’s multi-decade land-use strategy five years removed from bankruptcy at a time when Mayor Mike Duggan is focused on a plan to wipe out residential blight by 2024 through a taxpayer-funded $250 million bond he wants to put before voters in March. SEE LIVENGOOD, PAGE 36

HOMECOMING ROUNDUP

he sixth Detroit Homecoming, T which took place last week, explored entrepreneurship, education

LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

AOL co-founder and Revolution Capital CEO Steve Case talks with Renaissance Venture Capital CEO Chris Rizik at Detroit Homecoming. Vol. 35 No. 38 $5 a copy. $169 a year.

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Vacant land is one of Detroit’s great challenges — and one of its great assets.

and other pressing topics in Detroit. The event invites former metro Detroiters back to their hometown to re-engage and potentially invest in the city. Here is a sampling of the news that broke last week during the event, which is produced by Crain’s Detroit Business. Next week’s issue of Crain’s will feature a special section examining the issues raised at Homecoming.

Steve Case’s Midwest-focused VC fund raises another $215M Steve Case, AOL co-founder and former CEO, is tripling down on middle America. His Washington, D.C.-based venture capital fund focused on investments outside of the entrepreneur safe havens of California, New York and Massachusetts has raised another $215 million to finance startups. Case announced the closing of the Revolution III fund onstage at Detroit Homecoming in an on-stage conversation with Ann Arbor-based Renaissance Venture Capital CEO Chris Rizik. SEE ROUNDUP, PAGE 36

INSIDE

Forum: Can transit push move into higher gear? << New leadership in Oakland County could help push to carve out ‘coalition of the willing.’ Page 23 Pros, cons and community voices. Pages 24-26

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MICHIGAN BRIEFS

INSIDE

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

U.P. bank to acquire Bingham Farms-based Main Street Bank Keweenaw Financial Corp., the parent company of U.P. bank Superior National Bank and Trust, has agreed to acquire a metro Detroit bank with six locations. Hancock-based Superior National, with nine retail branches in the western U.P., will absorb Bingham Farmsbased Main Street Bank and its parent company, North Star Financial Holdings Inc., in a $42 million deal, according to a Wednesday news release. Pending closing conditions and regulatory approvals, the banks expect the acquisition to close in the first quarter of 2020. Both their boards of directors have approved the deal, the release said. The combined entity would have $847.4 million in assets and total deposits of $724.3 million, according to Federal Deposit Insurance Corp. data from June 30. “The combined bank will become Superior National Bank and Trust Co., however, we will run (Main Street) as a separate bank for a time until the integration is complete,” Dave Vlahos, president and CEO of Superior National, told Crain’s.

With the acquisition, Superior National can increase its lending capacity and can expand Main Street’s residential mortgage division to serve U.P. customers. The northern Michigan bank said in the release it doesn’t expect to change Main Street’s locations or services any time soon. But its headquarters will remain in Hancock. Main Street, founded in 2005, has retail branches in Troy and Bingham Farms; home loan centers in Rochester, Northville and Clinton Township; and a commercial loan center in Troy.

48,000 state workers notified of potential layoffs

Michigan’s 48,000 state government workers have been notified of potential temporary layoffs in case the next budget is not enacted before Oct. 1. Budget director Chris Kolb and other members of Gov. Gretchen Whitmer’s Cabinet emailed the employees. “With just two weeks remaining to get a budget completed, time is growing short, and we have a responsibility to be prepared for every possible scenario, including a state government shutdown,” Kolb wrote. “It would be irresponsible to both you and to taxpayers if we don’t continue to prepare for the possibility of

Hancock-based Superior National, with nine retail branches in the western U.P., will absorb Bingham Farms-based Main Street Bank and its parent company, North Star Financial Holdings Inc.

a shutdown.” The Republican-led Legislature has started approving spending bills, though there is no deal with the Democratic governor. About 30,000, or 62 percent, of state workers would be temporarily laid off. The rest would be deemed as essential to protecting the health and safety of residents and continue working. They include prison guards, state troopers, child protective services caseworkers and others. Functions that would cease in the event of a partial shutdown include

all state road construction projects, welcome centers and rest areas, state parks, secretary of state branches, most licensing, inspection and permitting programs and lottery games. The Liquor Control Commission would stop accepting orders from retailers for hard liquor. The state would also halt funding for K-12 school districts and local governments.

Boy Scouts’ campsite near Port Huron sold to mining company

The Michigan Crossroads Coun-

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cil of Boy Scouts sold a campground near Port Huron to a gravel mining company for $1.8 million, officials said. Christopher Hopkins, the council’s chief information officer, said the sale of the nearly 270-acre Silver Trails Scout Reservation in Jeddo to Mid Michigan Materials was finalized last Monday. “We are grateful for the partnership we have maintained with Mid Michigan Materials for more than two decades. Their commitment to our community has been unwavering,” Hopkins said in a joint news release from the organizations. “The Michigan Crossroads Council of Boy Scouts will continue to build future leaders of this country through educational activities and lifelong values across Michigan.” Robert W. Wilson, Mid Michigan’s vice president, noted the company will evaluate its next steps, including discussions with local townships and conservancies, the Times Herald reported.

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HEALTH CARE

Wellopp works with hospitals to keep people out of them

REAL ESTATE

Banking on flex space

By Jay Greene jgreene@crain.com

A Troy-based company is at the forefront of a trend that seeks to identify patients who might have problems after they get out of the hospital and marshal resources to help them. The company, Wellopp, makes an app-based system that aims to help people solve Need problems that to know contribute to rehospitalizations JJWellopp has and high health software that care costs — and identifies patients it has found that who have sometimes peoproblems ple will tell an complying with app things they treatment won’t tell a docJJHospital, tor. physician clients Many patients, use information to studies have direct resources to found, do poorly patients for after hospitalizaimproved health tion or other care medical care because they lack access to transportation, healthy foods, medication, housing or they face other social and environmental barriers to recovery. They often wind up back in the hospital, potentially worsening their conditions and running up costs. Experts call these barriers to healing the “social determinants of health.” Research has shown they play a major role in such chronic diseases as obesity, heart disease, diabetes and depression. They also can interfere with healing and recovery. Hospitals, physician offices and health insurers are grappling with ways to reduce the impact from social determinants of health. As payment for health care moves to models that reward quality and lower utilization, a holistic view of patients is increasingly seen by the health care industry as a way to reduce costs and drive value. SEE WELLOPP, PAGE 37

HOBBS + BLACK

The first phase of the project near I-94 and State Street in Ann Arbor is expected to cost $20 million, while the overall project is $60 million to $70 million with an anticipated 250,000 square feet of speculative space.

Ann Arbor developers plan large speculative development By Kirk Pinho kpinho@crain.com

Cameron McCausland and Joe Vig have formed a new real estate development company planning a 230,000-square-foot speculative project in Ann Arbor costing $60 million to $70 million. The two longtime real estate professionals — McCausland had been a broker with Plante Moran CRESA and Colliers International Inc. for nearly three decades and Vig has his own construction company, J.S. Vig Construction Co. — met at Colliers early in their careers and were doing acquisition and development deals on the side for years before teaming up to form Portage Capital Partners LLC. “It was just somewhat in the

shadows of my day-to-day job that we were accumulating a pretty sizable portfolio in Ann Arbor, primarily in the life sciences and tech business,” said McCausland, who registered the company in Plymouth in May. The first property the pair plans to tackle is a “kidney-shaped” site that’s part of the Ann Arbor Research Park near I-94 and State Street, where about 79,300 square feet of flex space would be speculatively built in the first phase followed by another roughly 150,000 square feet in a second phase across three buildings comprising what they are calling The Tech Loop @ Ann Arbor Research Park. Speculative building is generally considered riskier because a

tenant isn’t already secured, compared to build-to-suit, in which a user or users is already signed on. McCausland said they bought the first 5.6-acre property from Southfield-based Federal-Mogul for $965,000 with plans to tear down the 28,000-square-foot industrial building on the site to make way for the new speculative building. A second chunk of land totaling 10.8 acres is under contract with Qubit Group for an undisclosed price, McCausland said. The pair, who already have about two dozen buildings totaling about 400,000 square feet in the Ann Arbor area, say their portfolio is practically full and their tenants and others are in need of new, modern space. SEE FLEX SPACE, PAGE 33

“If you have somebody that needs a 50,000 or 100,000-squarefoot life sciences campus or tech campus in Ann Arbor, that product, that assembled land doesn’t exist, per se, and it’s a bit of a challenge.” Joe Vig

LOGISTICS

Uber of car hauling? United Road rolls out mobile platform By Kurt Nagl knagl@crain.com

United Road Services Inc. is rolling out what executives see as the Uber of car hauling and an answer to capacity constraints that will keep the company growing as uncertainty looms over the auto industry. The Romulus-based company, which trucks finished vehicles from railheads, ports and plants to car dealerships, launched its new digital platform Haully earlier this month, CEO Mark Anderson said. The mobile-friendly website is designed to lure third-party carriers — an important driver of growth for the company as it targets $800 million in revenue this year and projects $900 million in 2020. The streaky car hauling industry requires big companies to do a lot of sub-

contracting. Winning loyalty from the dwindling number of third-party drivers demands that the subcontracted work be convenient and easy to pick up, Anderson said. The solution Anderson was to invest in technology. “Capacity is hard to come by. Professional car haulers are a precious commodity,” he said. “Anything we can do to make them dedicated to us, that’s what we want to do.” Picture a third-party truck driver as an Uber or Lyft driver, only instead of people, their haul is new or used cars.

Need to know

JJRomulus-based car hauling company launches digital platform Haully JJUnited Road aims to grow to $900 million in revenue next year JJIt is focusing on third-party contracting to add capacity

They log onto Haully, type in their preferences — maybe a route from Detroit to Chicago — and see what inventory United Road has available that matches the criteria. Corporate prices out the hauls per mile depending on distance, urgency and size of haul. The work is available to all types of haulers, from self-employed drivers with flatbed pickups to small companies running 10-car rigs. SEE PLATFORM, PAGE 34

KURT NAGL/CRAIN’S DETROIT BUSINESS

Romulus-based United Road launched last week its new platform Haully for car haulers.

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COSTAR GROUP INC.

The former Kmart Corp. headquarters property at 3100 W. Big Beaver Road has sat unused for more than a decade.

Demolition of Kmart HQ remains possibility for new development Some concepts for any redevelopment of the former Kmart Corp. headquarters in Troy still involve tearing it down. H o w e v e r, KIRK nothing is firmed PINHO up and any redevelopment of the existing 1.1 million-square-foot, long-vacant behemoth or new development on the 40 acres on which it sits are easily years out. In general, it’s been a high-octane recovery from an economic disaster in 2007-08 (and the years leading up to it in Michigan) and there hasn’t been anything tangible put into play for the site during that time. “Concepts go through our mind, they come and go, and there’s not something that we have a definitive plan on at this point,” Nate Forbes, managing partner of Southfield-based Forbes Co., said during the last few minutes of a Tuesday afternoon interview about a new retail concept in downtown Detroit. He owns both the vacant, gnarly Kmart property at 3100 W. Big Beaver Road at Coolidge Highway and its polar opposite — the posh, bustling Somerset Collection shopping center across the street that’s widely acknowledged as a paragon of mall success in an era in which they have been dying and, in some cases, demolished. It’s been nearly a decade since Forbes Frankel Troy Ventures LLC paid a reported $17.5 million for the Kmart property in December 2009 in a defensive real estate move. Beyond occasional whispers, there hasn’t been much movement on repurposing it, although Forbes said three years ago that a master-planning process was underway. He said Tuesday that whatever takes the place of the Kmart property has to be “representative of what the gateway to that whole (Big Beaver) corridor is all about.” “Today that gateway is Somerset. So the old Kmart headquarters has to be something that is representative

“Concepts go through our mind, they come and go, and there’s not something that we have a definitive plan on at this point.” Nate Forbes

of what the corridor is today and what it needs to be in the future.” After Kmart vacated the office complex in the mid-2000s and moved to Illinois as a subsidiary of Sears Holding Corp., continuing its well-documented implosion across state lines, the plan was for a $320 million redevelopment called the Pavilions of Troy. Reston, Va.-based Richardson Development Group Inc. was to be developer; New York Citybased equity fund BlackRock Inc. owned the property at the time. BlackRock paid $40 million for the Kmart property in December 2005, according to CoStar Group Inc., a Washington, D.C.-based real estate information service. That project would have had 440,000 square feet of commercial and retail space, 132 residential units, a public ice rink, a 3,000-seat theater, restaurants and a grocery store. But under the weight of the economic recession, those plans collapsed. Sidney Forbes, founder of Forbes Co., told Crain’s in 2012 that the purchase of the Kmart property “was a defensive move” after Farmington Hills-based Grand/Sakwa Development began courting Somerset Collection tenants for a retail development. “So when we had the opportunity to buy that land, we took it,” Sidney Forbes said seven years ago. Grand/Sakwa’s plans stalled at the Troy City Council, and there has been little action on it since. At its peak, the Kmart property accommodated 5,000 employees. When it was sold in 2005, it had fewer than 1,900, many of whom were transferred to Illinois.

Kmart has been closing stores in Michigan and elsewhere for years.

Wigle project to start construction in spring The developer behind a long-in-theworks project on the site of a former city-owned rec center is seeking $8.28 million in brownfield financing. The $55 million-plus first phase of Midtown West is expected to begin next year and bring a unique 175-unit building to the former Wigle Recreation Center site in Detroit bounded by Selden Street to the north, the Lodge Freeway northbound service drive to the west, an alley west of Third Street to the east and Brainard Street to the south. It is to have eight studio apartments, 125 one-bedroom units, 38 two-bedroom units and four three-bedroom apartments, according to the brownfield plan submitted to the Detroit Brownfield Redevelopment Authority. About 7,000 square feet of first-floor retail is anticipated as well. The document says 20 percent of the units will be affordable to those making 50 percent or less than the area median income. The project was first revealed in April 2017 and was to be 335 residential units, with a mix of for-rent and forsale residences. Construction was to begin last fall and was later bumped to this spring. Studio Libeskind, based in New York City, and VolumeOne Design Studio LLC, based in Detroit, are working on the project. I last wrote about it about 18 months ago when Studio Libeskind was hired.

Yet another Detroit hotel project revealed In the Detroit Free Press on Monday, developer Joe Barbat revealed plans to turn the Gabriel Richard Building at 305 Michigan Ave. into an extended-stay hotel. That backtracks on an original plan to convert the building into apartments. He bought the building more than 4 1/2 years ago for $3.2 million. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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American Axle to sell iron castings business in $245M deal By Dustin Walsh dwalsh@crain.com

American Axle & Manufacturing Holdings Inc. last week announced a definitive agreement to sell its iron castings business to a New York private equity firm for $245 million. Under the deal, funds managed by Gamut Capital Management will pay $185 million in cash and $60 million in deferred payment obligations for Grede, which consists of 10 Dauch plants, the Detroit-based auto supplier said Sept. 18 in a news release. American Axle will also retain its iron castings plant in El Carmen, Mexico. The deal is expected to close in the fourth quarter, pending regulatory approvals. The proceeds will be used to pay down debt, the company said. “The sale of Grede will enable us to streamline our business, acceler-

By Kirk Pinho

A former business partner of a missing Detroit commercial real estate executive has been dismissed from a civil complaint alleging a “multi-million dollar Ponzi-type scheme.” Gregory Vitto on Sept. 13 was removed from civil proceedings in Oakland County Circuit Court. An attorney representing the plaintiffs confirmed Vitto was dismissed. Vitto said that Viktor Gjonaj, the 42-year-old president of Troy-based Imperium Group who hasn’t been heard from in weeks, forged his signature on various documents. He also said Gjonaj scammed him. “I was used just like the rest of the people,” Vitto said last week. “He owes me a ton of money also.” Gjonaj’s disappearance has shocked the Detroit commercial real estate community. Friends, co-

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“The sale of Grede will enable us to streamline our business, accelerate our debt reduction initiatives and enhance our margin profile.” David Dauch

ate our debt reduction initiatives and enhance our margin profile,” David Dauch, chairman and CEO, said in the release. American Axle’s Grede division manufactures, assembles and supplies iron castings and machined components for automotive, commercial vehicle and industrial markets. In 2018, Grede generated revenue of $781 million, American Axle

said in the release, and cuts out a large chunk of its metal forming division. That division generated approximately $2 billion in revenue in 2018, making it the largest automotive metal forger in the world, or about 25 percent of American Axle’s total revenue of $7.8 billion. Wall Street hasn’t responded favorably to the deal with American Axle (NYSE: AXL). Year-to-date, shares of American Axle are down nearly 30 percent as the automotive industry stammers toward a cyclical downturn. American Axle acquired the Grede operations in 2017 as part of its $3.3 billion acquisition of Metaldyne Performance Group. Metaldyne was acquired by private equity firm American Securities LLC in 2012 and merged with thenSouthfield-based Grede Holdings LLC and Royal Oak-based HHI Group Holdings LLC, both majority-owned by American Securities, to form MPG in 2014. The merger created about a $3 billion automotive and industrial parts supplier. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

Former business partner dismissed from Ponzi scheme complaint kpinho@crain.com

Bertram L. Marks, Esq.

Need to know

“I was used just like the rest of the people. He owes me a ton of money also.” Gregory Vitto

workers and executives have expressed surprise at the allegations of wrongdoing. He has not responded to emails and text messages from Crain’s in the last week. The Michigan Attorney General’s office said Tuesday afternoon that it could neither “confirm or deny” that an investigation into Gjonaj was taking place. The U.S. Department of Justice last week said it “wasn’t able to find any cases, either civil or criminal, that our office was involved in relating to Mr. Gjonaj.” The lawsuit alleges Gjonaj doctored purchase agreements to make

it appear to investors as if they were buying ownership interests in properties around Southeast Michigan, when in fact they were already owned by the plaintiffs, Kris Krstovski and Jerome “Jerry” Masakowski. There are other lawsuits alleging that Gjonaj owes money or defrauded investors. The small team of commercial real estate professionals Gjonaj assembled for Imperium disbanded after not hearing from him for weeks and not getting paid; and the company building his new $2.25 million mansion began seeking nearly $200,000 for unpaid work after he abruptly went dark. That lien is separate from three Oakland County lawsuits alleging that he stole millions of dollars. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

Crain’s 2019 Health Care Summit to feature author, former Aetna CEO Our health care system is beset by gaps — gaps among patients, providers and payers. There are gaps in information: understanding on all sides about health coverage, communication among providers, gaps among people in the social determinants of health. Crain’s 2019 Health Care Leadership Summit will focus on bridging these gaps in the effort to create a system that works for all. The keynote speaker for the event will be someone who knows that well: Henry Ford Health emergency room physician Rana Awdish, M.D.

Awdish

Bertolini

Her book “In Shock” recounts the story of her own experience as a patient with a life-threatening condition who then returned to medicine. Another featured speaker at the

summit helped put together a multibillion-dollar deal that promises to disrupt some of the gaps in our multilevel health care system: former Aetna Inc. CEO Mark Bertolini, who oversaw the insurer’s sale to pharmacy company CVS Health Corp. The summit will also feature presentation of Crain’s Health Care Heroes awards along with breakout sessions on specialty topics. The summit runs 8:30 a.m.-1:30 p.m. Oct. 28 at The Henry hotel in Dearborn. Tickets are $185 or $2,000 for a table of 10 and are available at CrainsDetroit.com; click on the “Events” tab.

CONGRATULATIONS TO THE DETROIT METRO CONVENTION & the VISITORS BUREAU FOR HONORING 25 YEARS OF SERVICE EXCELLENCE IN HOSPITALITY

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Jen Mishory and Peter Granville

Moreover, adult learners receive too little financial support if they want to go back to school. Wages have declined for those without a college degree since the 1970s, and several of Michigan’s largest growing industries (professional services, education, and health care) are likely to require postsecondary education (including certificates and associate’s degrees). For working adults who want to find a pathway to a longer-term wage bump, earning a degree is their best bet. Yet, in 2010, legislators eliminated the Adult Part-Time Grant, and since then virtually all adults 28 and older have had no access to state aid. It is clear, then, that legislators have not prioritized higher education — in fact, only 4.1 percent of the state budget goes to higher education, compared to a 50-state average of 10.1 percent. Michigan lawmakers can take tangible steps to reverse some of these trends, and higher education investment is a key part of ongoing budget negotiations in Lansing. But it will also take a long-term approach to dedicate dollars and structure investments to eliminate inequities in college access and outcomes. Such forward thinking would also provide a good return for the state: Thanks to the higher wages that a degree affords, it is less expensive for the state to open doors for more Michiganders to attend college than it is to let the status quo persist. Peter Granville and Jen Mishory are researchers at The Century Foundation, a leading New York-based think tank. They are co-authors of a new study, Michigan’s College Affordability Crisis.

LETTERS

Crain’s fails to tell whole story on cannabis denials To the Editor: Crain’s recent story about Mazin Samona’s denial for his proposed Oasis medical marijuana business licenses failed to dive into the real story around these denials. The Marijuana Regulatory Agency used issues dredged up from more than 30 years ago as grounds for de-

nying Oasis’ licenses. The incidents mentioned referenced in Crain’s story were either inaccurately reported or were charges that don’t accurately reflect what really happened at that time. Mr. Samona was charged with only one count of disorderly person and there were no charges involving prostitution. Another incident referenced in the story involved catcalling when he was north of Eight Mile which then got turned into overblown charges by heavy-handed police. We appreciate Crain’s making corrections to the

sue that requires more investigative reporting is why the staff at the MRA would disregard an administrative law judge’s objective determination that Oasis is the exact type of applicant to receive a license. It is my sincere hope that Mr. Samona is successful in his appeal against this unfair denial and that his name can be cleared once and for all. Martin Manna President Chaldean American Chamber of Commerce

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When did venture capitalists become the bad guys?

n preparation for my new role as the National Venture Capital Association chair, I’ve been reflecting on the VC industry and where it fits in today’s world. VC is an extraordinary space filled with risk-takers making outsized positive impacts in their fields. Unfortunately, public perception of the industry has shifted in recent years. How can we best address the weaknesses and continue to foster the entrepreneurial success stories that form the bedrock of our unique ecosystem? Before addressing that question, I’d like to start by sharing my own startup story. I grew up in San Francisco and graduated from UC Berkeley as a biomedical engineer. After working for Procter & Gamble in manufacturing and getting my MBA at Wharton, I entered the entrepreneurial world and spent 12 great years working for two medical device startups in the Bay Area, both of which were acquired by Eli Lilly and ultimately became the foundation of Guidant Corp. My career was thriving in the Bay Area, but when my husband found his next position in Ann Arbor, Michigan, I became a reluctant trailing spouse. After having three daughters in 18 months, I started a consulting business to support early stage health care companies in Michigan, along with Guidant’s venture arm. Eight years of consulting later, I decided I wanted to work in VC but was unable to find a job in Ann Arbor, so I went to IRS.gov, filed for a tax ID number and started my own firm. Arboretum Ventures was founded 17 years ago based on the fundamental belief that through innovation we should be able to drive cost out of the health care system while still providing great care. Our founding mission remains even more critical today with health care costs representing 18 percent of the U.S. GDP. We have invested in 50 companies, helped over 7 million patients and created over 4,000 jobs, the majority of which are in under-ventured regions. It has truly been a privilege to be a part of this industry working with fantastic inventors, entrepreneurs and investors, so it pains me to see venture capital come under fire in recent years. When did venture capitalists become the bad guys? I believe a few key trends have contributed to the changing perception: J VC is closely associated with Silicon Valley’s insularity and wealth, carrying a negative connotation especially in an age of rising populism on both sides of the political aisle. Focus tends to fall on VCs’ and startup founders’ personal success and wealth, instead of the benefits technology startups provide to people across the world and the returns created for the pensions, foundations and endowments that comprise the VC limited-partner community. J The technologies in which we invest pose a threat to incumbent industries. Consider robotics and AI startups poised to reduce employment in manufacturing while increasing productivity for the manufacturer. While history tells us that in the long run, technology is a net creator of jobs, near-term changes can carry unintended consequences. J Our industry lacks diversity in gender, race, socioeconomic status and geography, both at the firm and portfolio company level. Progress has

OTHER VOICES Jan Garfinkle

As an industry, it’s essential we focus on being a catalyst for positive change.

been made, but there is significant room for further improvement. The venture capital community needs to tackle these challenges head-on and strive for a higher standard. As an industry, it’s essential we focus on being a catalyst for positive change. We have an opportunity to lead others toward more conscious investing. My call to action? Three steps every VC can incorporate: J Take every opportunity to tell your own story and educate others on VC’s impact. No explanation of VC should be complete without mention of how our industry catalyzes entrepreneurship and innovation, and

how the primary beneficiaries of our success are limited partners that use our returns to fund pensions and invest in communities. J Focus on solving big problems with your investments — back good people and good ideas. Think about how to mitigate unintended consequences when you invest in disruptive technology, including proactive outreach to displaced workers and training programs to move workers up the skills ladder. J Prioritize diversity in your firm and investments. Make it a topic of discussion for every investment and new hire. Diversity in teams has been shown to improve fund performance

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NOT YOUR TYPICAL LEADER.

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and investing in communities outside of your local geography is powerful — there are great entrepreneurs everywhere in the U.S., and startups in under-ventured regions can often succeed with less capital, providing better returns to your fund and LPs. I am honored and excited to be the chair of NVCA. I ask the venture ecosystem to help me be successful on behalf of the entrepreneurial community by incorporating these calls to action at their firms. Jan Garfinkle is CEO of Arboretum Ventures and the new chair of the National Venture Capital Association.

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FOCUS

WOMEN IN LEADERSHIP

Wendy Cox is the president and director of Greenleaf Trust. ALI LAPETINA FOR CRAIN’S

Wendy Cox wants women to know where their money is By Rachelle Damico | Special to Crain’s Detroit Business

endy Cox needed a change. She had been working in law for more than 15 years, climbing the ladder to a partnership at a law firm.

“The constant battle wore me out after a while,” Cox said. “With estate litigation, there’s a lot of fighting over china. I wanted to be in a position to prevent that kind of family strife.”

Now, Cox is the president and director of Greenleaf Trust, a Kalamazoo-based, privately held wealth management firm that manages $8 billion in assets annually. Cox leads the trust relationship officer team at Greenleaf’s Birmingham office. In her role, she advises clients on trust and estate-related matters and oversees day-to-day account and fiduciary requirements. Cox helps business owners and wealth individuals plan for themselves and their families by helping families eliminate conflict and providing an orderly transition of business and family assets. “Wealth brings with it complications and responsibilities,” Cox said. “(Having a professional trustee) allows families to be families instead of

warring factions.” Cox is also passionate about empowering Michigan women to be smarter about their finances and provides strategic counsel to women across the state by helping them set up for long-term financial success and independence. What drew you to study law?

Growing up, I knew my strengths lie in English and the social sciences. When I was in college, I went back and forth between (deciding) to get a Ph.D. in English or go to law school. I ultimately decided to go to law school, because I wanted to be in a position to help people and affect change. My father, Paul Zimmer, was also a lawyer. He worked for Michigan attorney general Frank Kelly in

the education division and always talked about it as a way to help others. For the most part, I knew I was headed down that path. My first experience working in law was for judge Susan D. Borman in the Wayne County circuit court. That was a tremendous experience because she was a strong woman. She was really smart and knew the courtroom roles and procedures. I learned a lot from that experience because you were dealing with all different kinds of lawyers and clients and how to communicate effectively with different people. Is it challenging to lead a group of lawyers?

I had a leadership role at Dykema where a co-worker and I were tasked with leading our client team and the client service as a whole. Leading lawyers is like herding cats because they tend to have very strong personalities. I was younger than most of the people I was trying to lead, but I learned to talk to people one-on-one and get buy-in before I went into a big meeting. That way, you had people who were going in the same direction. Of course, I was still open and listening to other ideas. As a leader, you have to be able to adapt to other people’s communication styles

— recognize that one person can be really analytical and need to work through something step by step, whereas somebody else may need just the big picture and they can run with it. It’s really understanding your team, building trust with them and being able to communicate how they need you to communicate. You’ve had a long career in law. At one point, you were even a partner at a law firm. Why did you move away from that?

The constant battle wore me out after a while. It was terribly painful to watch other people’s families destroyed over just stuff and see arguments about who was the good child and who was the black sheep. Family issues spring to the floor when a second parent dies. Now I’m in a position to get in front of that and change that for people. Being a trust officer also fit with the things that I was doing, including practicing law, working with families, managing wealth and transitioning wealth from generation to generation. I left for a trust role within the bank because it’s sort of the opposite side of the coin from practicing law in that area. I later joined Greenleaf because it’s a trust-only bank and a Michigan company. SEE COX, PAGE 11

The Cox File Education: Bachelor of arts degree in English and a juris doctor from the University of Michigan. Career ladder: Began her career working as a law clerk for Judge Susan Borman at the 3rd Circuit Court in Wayne County from 1992-1993. After that, Cox worked as a senior associate specializing in probate litigation and estate administration for Troy-based law firm Giarmarco, Mullins & Horton P.C. from 1994-2000. She joined law firm Dykema Gossett PLLC as a partner at the firm’s Bloomfield Hills office in 2001. In her role, she specialized in estate planning and business succession planning. She left Dykema in 2008 to join Fifth Third Bank in Southfield as vice president and director of private bank sales, where she was responsible for the management of private bank wealth management advisers. She left Fifth Third Bank in 2012 to join Greenleaf Trust in Birmingham as a trust relationship officer. Current Role: vice president and director of personal trust at Greenleaf Trust. A career mentor: Marsha Woods, attorney at Giarmarco, Mullins & Horton. “She took me under her wing as a young attorney and was instrumental in helping me navigate practicing law,” Cox said.

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Skidmore Studio exits Madison Building for Capitol Park in Detroit By Anisa Jibrell

COX

FROM PAGE 10

The trust departments at the larger banks are always competing for attention with other areas, but we only do trusts and don’t try and be all things to all people. We have no conflicts of interest, and we’re on the client side of the desk. That’s really freeing from what happens in a lot of corporate America. What does your role entail now?

Most people have heard the term trust officer but don’t really know what it is exactly. Wealth management advisers make the investments, track the investments and make sure we stay in line with the investments. The trust officer does everything else. We pay bills and help with issues that don’t necessarily have anything to do with the investment, like helping someone decide if they should take out a loan to buy a new house or borrow from the trust. Then sometimes it ends up being something completely off the wall. Once, we had an inspection of our client’s house be-

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After operating out of the Dan Gilbert-owned Madison Building for nearly nine years, Detroit advertising and design firm Skidmore Studio is shifting gears as it prepares to move its 16 full-time employees into its new home in the city’s Capitol Park district. The 60-year-old company will move Nov. 1 to the sixth floor of 1265 Griswold St., above the Detroit Institute of Music Education space, according to owner and President Drew Patrick. The company’s lease on its Patrick 9,000-squarefoot space in the Madison Building expired at the end of August. The new 6,000-square-foot space in the Gilbert-owned Bamlet Building is the right size for the team and future growth, Patrick said. The Madison Building location offered more space than the company needed, said Patrick, who also noted that the real estate market in Detroit has “changed drastically.” “Rental rates have more than doubled since [we] moved downtown,” he said. Skidmore, which helps companies grow through brand strategy and design, signed a five-year lease for the Capitol Park space, which can accommodate 25-30 employees, according to Patrick. Patrick said Capitol Park is a great fit and “an exciting neighborhood to be a part of ” with a multitude of food options. The new headquarters also presents an opportunity to design a new space from scratch with movable furniture and partitions to produce a flexible space and collaborative environment as opposed to the former space, which had plywood

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Skidmore Studio is preparing to move its 16 full-time employees into its new home in the Bamlet Building in the city’s Capitol Park district.

Need to know

JJSkidmore to move 16 employees to new

space

JJNew location is about 3,000 square feet smaller JJStudio recently hired Peter Fezzey to head business development

work stations that were set in place, he said. Patrick could not immediately provide investment details for the company’s new headquarters. As Skidmore transitions from one location to the other, team members are working remotely with workspace available in Ferndale at video production company Zara Creative. “They’ve been incredibly kind to offer up some desks and use of their conference rooms for team and client meetings, as needed,” Patrick said in an email. “It’s been incredibly helpful.” In 2011, owner Tim Smith moved Skidmore from Royal Oak to the Madison Building at 1555 Broadway St. In early 2018, the creative studio’s longtime leader died, leav-

“You need to know that you have the financial wherewithal to take care of yourself and your family. I want women to be empowered to understand that and to care for themselves.” Wendy Cox

cause the trust owned the house. We discovered that the windows were painted shut. It was unsafe for our clients and any occupants. As we worked with the window installer and others to bring the home up to code, we rolled up our sleeves, went to Home Depot and even put up new blinds. Being a trust officer isn’t just a desk job. It’s fun because it’s different every day. You’re passionate about helping women with financial planning. Why

ing ownership of the company to his wife, Colleen Smith. It was a “challenging situation to get through,” Patrick said. The company later underwent a transition of leadership and ownership last fall when Patrick purchased the company. Over the course of last year, Skidmore’s revenue rose about 20 percent and Patrick expects the company to continue with that pace into next year. Patrick declined to provide revenue figures. The advertising studio recorded $3 million in revenue in 2017, Crain’s reported. The company typically works with 15 clients at a time and is actively pursuing new business accounts. Peter Fezzey, who joined Skidmore as head of business development in April, is leading those efforts, Patrick said. The company recently landed new clients St. Louis, Mo.-based Anheuser-Busch, parent company of Budweiser, and Baltimore, Md.-based Under Armour. Anisa Jibrell: (313) 446-0495 Twitter: @anisajibrell is that important to you?

We still have a societal norm that one person in a relationship takes care of the money. In heterosexual relationships, it tends to be the man. A lot of women unfortunately just don’t know what’s going on. I’ve seen situations where the spouse of a woman dies and the life insurance money went to their husband’s first wife because the husband never got around to changing the beneficiary delegation. I’ve also had to tell women who lost their spouse that they have to sell their house because they don’t have enough to live at the level that they’re accustomed to. The last thing you should be worrying about when your spouse dies is how you’re going to pay your bills. You need to have a basic understanding of what you have, where it’s located and if you’re going to have enough money to last for the rest of your life. You never want to be surprised that you don’t have what you think you do. You need to know that you have the financial wherewithal to take care of yourself and your family. I want women to be empowered to understand that and to care for themselves.

SOUTHFIELD, MICHIGAN

Possible is everything.

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NOTABLE WOMEN IN EDUCATION LEADERSHIP

CRAIN’S 2019

Meet Crain’s Notable Women in Education: 35 women leaders who are changing how Michigan learns.

PRESENTED BY:

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CRAIN’S 2019 NOTABLE WOMEN IN EDUCATION LEADERSHIP BETH BAKER

ROSE BELLANCA

ELIZABETH BIRR MOJE

Co-CEO and Co-Founder, Centric Learning Systems, Belleville

President, Washtenaw Community College, Ann Arbor

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Most recent degree earned: Master of Science in Alternative Education in Nontraditional Settings, Wayne State University

Most recent degree earned: Doctor of Education in Administration and Organizational Studies, Wayne State University

Dean, School of Education; George Herbert Mead Collegiate Professor of Education; and Arthur F. Thurnau Professor, University of Michigan, Ann Arbor

Beth Baker taps into the knowledge of great teachers by using proven, evidence-based best practices and data to advance learning for children. Before co-creating Centric Learning Systems, Baker established Widening Advancements for Youth, a nonprofit that manages public school academies for local school districts. She also provided leadership and technical assistance for 34 school districts and 350,000 students as a consultant for the Wayne County Regional Education Service Agency (RESA). “I have known Beth in her role with Wayne RESA ... and in her role of creating a private education organization that now spans three continents. Her passion for doing right by children and helping to create pathways to success have remained the common denominator in all she does,” said Tom Watkins, former Michigan state superintendent of schools. When developing Centric, she and her partners researched ways they might narrow the education gap. They came up with a project-based learning curriculum based on inquiry or research into solving problems, understanding issues and exploring new topics with core subjects such as math and language skills being tools they learned along the way.

Under the leadership of Rose Bellanca, Washtenaw Community College has maintained steady enrollment during a period of national enrollment declines. She has implemented numerous innovations in teaching and student services to stay ahead of the disruptive forces in higher education. “Since Dr. Bellanca was hired in 2011, I have been most impressed with her forward-thinking approach to her presidency and to the direction of the institution. Under her leadership, the college engaged in a comprehensive effort to develop its first strategic plan in over a decade. This plan has provided a road map that keeps the college moving forward — not just for our current students, but for those who will follow in their footsteps,” said Diana McKnight-Morton, member of the WCC Board of Trustees. Highlights of Bellanca’s tenure include implementing 30 online certificate and associate degree programs, successfully raising millions of dollars in private fundraising, leading seven public millage campaigns and initiating partnerships with trade unions to help narrow the gap in the number of skilled trades workers. She also developed the Center of Excellence for Nursing Education and Advanced Transportation Center. The latter, with financial support from Michigan’s Capital Outlay Committee, grants and donations, trains students in connected vehicle technology. As an advocate for education policy changes, Bellanca has also served as chair of the five-county Region 9 Talent Council for the Michigan Regional Prosperity Initiative, which resulted in the development of a consortium of leaders in education, business and nonprofits.

MONICA BROCKMEYER

REBECCA CAMPBELL

ROBIN CARTER

Senior Associate Provost for Student Success, Wayne State University, Detroit

Professor of Psychology, Michigan State University

Director of Instructional Equity and 504 Compliance, Rochester Community Schools, Rochester

Most recent degree earned: Doctor of Philosophy in Computer Science and Engineering, University of Michigan

As co-chair of the university’s General Education Reform Committee until 2017, Monica Brockmeyer helped the school adopt a new general education curriculum, Wayne State University’s first curriculum overhaul in 30 years. It was that kind of strategic leadership along with improving the graduation rate and retaining students that led to her promotion last year. Under Brockmeyer’s guidance, WSU hired more than 45 academic advisers over four years, improving the student-to-adviser ratio. To support those advisers, she launched the Academic Advising Summit and the Academic Advisor Training Academy, which provides professional development opportunities. “Monica has taught me what it really means to be passionate about student success. She has educated me on the scholarship and the practical knowledge we need to make students thrive at a great institution,” said Keith Whitfield, WSU provost and senior vice president for Academic Affairs. Brockmeyer, who oversees campus parent and family orientations, helped transform WSU’s educational culture into one that emphasizes students’ strengths, supports their sense of belonging and cultivates their resilience and academic determination when they encounter stressors. She also launched the Warrior Vision and Impact Program, a coalition of more than 50 individuals and campus programs designed to help incoming first-year students successfully transition into college, excel and graduate on time. Moreover, Brockmeyer oversees the university’s Office of Federal TRIO, which serves students who are low-income and the first in their families to attend college. The initiative includes programs for high schoolers as they prepare for college and prospective college-age students.

Most recent degree earned: Doctor of Philosophy in Community Psychology, Michigan State University

Since joining the faculty of Michigan State University, Rebecca Campbell has won more than a dozen awards, including a 2015 Outstanding Educator Award from the Society for Community Research & Action arm of the American Psychological Association. Campbell, who is a distinguished fellow in the Michigan Chapter of the International Association of Forensic Nurses, teaches MSU courses in research methods, program evaluation and gender-based violence and trains law enforcement and individuals in civilian, military and campus community settings on the neurobiology of trauma. Early in her career, Campbell earned a scientific achievement award for her contribution to the science of forensic nursing. More recently, she became the first recipient of the U.S. Department of Justice’s Crime Victims Research Award (2015) and the W.K. Kellogg Foundation Community Engagement Scholarship Award (2017) for her Detroit Sexual Assault Kit Action Research Project. The National Institute of Justice funded her SAK project, a four-year study of Detroit’s untested rape kits. Her research primarily examines community and campus responses to sexual assault on college campuses and the experiences that sexual assault survivors have dealing with the legal and medical systems.

Most recent degree earned: Doctor of Philosophy in Literacy and Language, Purdue University

In 2016, the University of Michigan promoted Elizabeth Birr Moje because of her groundbreaking educational research, her role in launching the Center for Education Design, Evaluation and Research and her ability to develop significant partnerships. “Her community engagement and her research are focused on connecting individuals, schools and communities so that all are strengthened and better able to support young learners. … Elizabeth is contributing to the redefinition of public education for the 21st century,” said Martin Philbert, provost and executive vice president for Academic Affairs at UM. Birr Moje established UM’s Education for Empowerment undergraduate minor that advances the aims of justice and democracy in society. She also launched Teach Blue, which recruits, assists and retains teachers. Furthermore, she was instrumental in establishing a research collaboration between UM, Michigan State University, the Michigan Department of Education and the Center for Educational Performance and Information, called the Michigan Education Research Institute. Its goal is to facilitate research projects in education, make data accessible and improve education. Birr Moje also forged a collaboration with Detroit Public Schools Community District, the Kresge Foundation, Starfish Family Services, the Marygrove Conservancy, Detroit Collaborative Design Center and IFF to launch a “cradle-to-career” project on the grounds of the former Marygrove College that will provide project- and place-based curricula, support services and a model for teacher preparation.

Most recent degree earned: Master of Science, Central Michigan University

When Rochester Community Schools, which employs 1,800 people and serves 15,000 students at 21 schools, sought to enhance its efforts in providing equity, access and opportunity, leadership created a new director position. They hired Robin Carter, who skillfully unites people with diverse backgrounds and experiences so everyone in the school community is safe, valued and respected. The school system’s strategic plan includes investigating, developing, and implementing programs that ensure students and staff have a high degree of cultural awareness, which includes diversity and inclusion. Carter brings the vision to fruition by researching institutionalized racism, racial identity development, cultural proficiency, culturally responsive teaching and stereotyping threats. Carter approaches cultural proficiency in all facets of decision making — from hiring, curriculum and discipline to access, opportunities, policies and initiatives. She led training sessions across the district and leads efforts to guarantee students with disabilities have the same opportunities as the rest of the student populations. In addition, she leads conversations that educate and engage the community, build awareness, evaluate current systems and make changes to policies and practices. For instance, earlier this year, Carter implemented a new format for the district’s Martin Luther King Jr. celebration, which included guest speakers and a panel of experts at two large events. She has also been a presenter at the 2019 National Conference on Racial and Social Justice and is scheduled to present at the Michigan Association of School Administrators this fall.

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WANDA COOK-ROBINSON

KAREN DALEY

CATHERINE DAVY

Superintendent, Oakland Schools, Waterford

Dean of the College of Health Professions, Davenport University, Grand Rapids

Provost and Vice Chancellor for Academic Affairs, University of Michigan-Dearborn, Dearborn

Most recent degree earned: Doctor of Philosophy in Nursing, Rutgers University

Most recent degree earned: Doctor of Philosophy in Drama and Performance Studies, New York University

Karen Daley noticed that Davenport University students became less engaged with traditional teaching methods as technology became more prevalent; so, the college developed simulation labs that not only engage but also prepare students for real-world scenarios. Under Daley’s direction, the college created online-only health programs and brought telemedicine to the school to prepare students. Her team initiated partnerships with health care affiliates, such Mercy Health Saint Mary’s, to address the nursing talent shortage by providing clinical opportunities in the operating room. Always looking for ways to enhance education, Daley developed a primary care initiative for registered nurses in the bachelor of science in nursing pre-licensure program. She also developed a veteran BSN program that paves the way to for military veterans to receive school credit for their experience. The VBSN program increased retention of military medical nursing students and increased graduation rates. In the community, Daley is a committee member and the Davenport representative for the Grand Rapids African American Health Institute/Kellogg Foundation’s “Pathways to Healthcare Careers.” “Dr. Daley infuses our institution with wisdom, accountability and intentionality. Because of her commitment, GRAAHI can increase access, matriculation and academic progression for students of color. Her efforts as an educational leader reach well beyond Davenport University and directly impact the lives of high school students, college students, colleagues and organizations across the state of Michigan,” said GRAAHI Executive Director Micah Foster.

Catherine Davy gets things done. Davy, who is responsible for more than 80 percent of the University of Michigan-Dearborn workforce, pulls together the right people to create and implement initiatives that advance the university. “As provost of the University of Michigan-Dearborn, Catherine Davy has devoted her career to helping the people of our region achieve success in life and work. She has brought incredible innovation to talent development, using her academic background in the performing arts to foster creativity and key competencies through the university’s Talent Gateway. Provost Davy’s efforts to ensure that students can take control of their futures and careers have contributed to UM-Dearborn’s national recognition as a leader in community engagement,” said University of Michigan President Mark Schlissel. Davy’s initiatives include creating a campus-wide advising office for first-year students, revamping general education, establishing a new College of Education, Health, and Human Services and adding scholarship options. She also launched Talent Gateway, which encourages students to practice the autonomy needed in the workforce and teaches time management and how to have an innovative mindset. In addition, under her leadership, UM-Dearborn launched an Innovation, Design, Entrepreneurship and Artistry Laboratory in which students and faculty from multiple disciplinary backgrounds collaborate to address emerging challenges and develop valuable solutions for individuals, industries, businesses, nonprofits and communities.

Most recent degree earned: Doctor of Philosophy in Instructional Technology, Wayne State University

Wanda Cook-Robinson doggedly and creatively oversees 28 school districts serving more than 200,000 students. “The difference between poor performance and extraordinary success is typically traced back to a leader or to leaders who inspire (or don’t inspire) that performance. These great leaders also have the presence of mind to model the very behavior they are seeking to elicit from those who follow. And then, when success is finally realized, the great leader turns and gives everyone else the credit for making it happen. The attributes I have described are those of Dr. Wanda Cook-Robinson,” said Fred Bateman, executive director of Urban Superintendents Association of America. Because Cook-Robinson felt the method of funding to Michigan’s schools needed reexamination so all students could achieve and succeed, she sought to create change and created a steering committee, called the School Finance Research Collaborative, comprised of business leaders, educators, legislators and industry experts helped guide a plan to reform school finance. The collaborative raised $800,000 and delivered a report — which uniquely included preschool and charter schools — that provided the foundation for a new school funding formula. Cook-Robinson’s team also developed a STEM Summer Camp for middle school students and a School to Work Summer Program for high schoolers to allow students to explore opportunities and create a pipeline of talent for the shrinking labor force. The 10-week School to Work Summer Program provides equal parts classroom and on-the-job training.

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CRAIN’S 2019 NOTABLE WOMEN IN EDUCATION LEADERSHIP JUDY DIDION

DEBORAH DUNN

KYLE HALL

Dean and Professor for School of Nursing, Oakland University, Rochester

Dean of the Graduate School, Director of the Center for Research, Madonna University, Livonia

Principal, Seaholm High School, Birmingham Public Schools, Birmingham

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Most recent degree earned: Doctor of Philosophy in Nursing, Duquesne University

Most recent degree earned: Doctor of Education in Higher Education Administration, Eastern Michigan University

Most recent degree earned: Master of Fine Arts in Literature, Wayne State University

Oakland University’s School of Nursing has grown and prospered since Judy Didion’s appointment as dean in 2016. She has made considerable changes to the curriculum and tuition structure to ensure the program meets accreditation standards and workforce needs, removes barriers to registered nurses completing their bachelor’s degrees and provides access to continuing education. In addition to making the program available online, Didion also launched new curricula, including the Forensic Nursing program and the Acute Care Nurse Practitioner program. She converted the Nurse Anesthetists program to a doctoral level program, which should help fill the faculty shortage for schools of nursing. Didion strives to design a supportive work environment for staff and faculty. She has done this, in part, by adding technology to support student admission processes, simulation lab expansion and innovative teaching technology. She added NursingCAS, an application system designed to promote access, equity and integrity to the college admission process. As a result, interest in the graduate nursing programs increased. Further, Didion collaborates with other health care organizations and corporations. “Dean Judy Didion is a tremendous partner for nursing at Ascension Providence Rochester. Her creativity and passion for nursing excellence is inspiring. In collaboration with Dean Didion we have expanded our scholarship programs and selected a new endowed chair. Her vision and dedication to the profession will impact nurses and our community for years to come,” said Deb King, vice president of Nursing for Ascension Providence Rochester.

Deborah Dunn operates with a quality-improvement mindset in whatever role she holds. As dean of the Graduate School and temporary dean of the Business School, Dunn added master-level and doctoral programs at Madonna University to meet workforce needs for leaders in nursing and education, expanded opportunities for faster degree completion, launched an online delivery model and grew graduate certificate programming. “Her strong vision for developing top-notch business graduates and penchant for continuous improvement also led to the addition of several successful graduate programs, such as accountancy and business leadership, to meet the demands of employers in all sectors. Most importantly, Dr. Dunn advanced the student-centered mission of Madonna University in several ways for our business students, including the creation of forums that bring prominent business leaders and companies to Madonna for several career development opportunities, which boosted the percentage of our students being hired before and after graduation,” said Jim O’Neill, provost and vice president for Academic Administration at Madonna University. As director of Madonna’s Center for Research, Dunn organized and implemented an annual symposium that included free continuing education workshops and a Research Integrity Training program. Dunn, who is president-elect of the Gerontological Advanced Practice Nurses Association, received the GAPNA Excellence in Leadership Award in 2018 and was instrumental in the development of its Statement of Proficiencies for an Advanced Practice Registered Nurse gerontological specialization. “Her experience and insight have significantly influenced the GAPNA’s strategic dissemination of geriatric-focused resources so that we, as a professional organization, can have the biggest impact on those we serve,” said GAPNA President Valerie Sabol.

Kyle Hall belongs to several Birmingham Public Schools District committees focused on diversity, equity and school leadership initiatives. She brings her involvement to bear through a multitude of programs that earned Seaholm High School a 2018 National Blue Ribbon Award and top 10 ranking in U.S. News & World Report. Hall strives to foster an inclusive atmosphere that is reflected in Seaholm’s mission statement: “Think with reflection. Act with compassion. Perform with honor.” Most notably, her students’ total well-being, including mental and physical health, is of paramount importance to Hall, because she recognizes that without those, no true academic learning can occur. She provides suicide prevention and awareness programming to staff, students and members of the surrounding community. She also was integral to the conception and facilitation of UMatter week, a time when the school emphasizes mental wellness and life balance. The initiative includes safeTALK training for staff and students along with TED-style talks about mental health struggles. “Kyle exhibits a true passion for instructional leadership and ensures that her administrative team focuses on components of this every week. She leverages her letters to parents, announcements to students and even day-to-day emails to cultivate ongoing partnerships and establish new ones. Her kind, authentic nature shines through in each of these communications,” said Rachel Guinn, deputy superintendent for School Administration, Birmingham Public Schools.

LUCIE HOWELL

LISA HOWZE

KIMBERLY HURNS

Chief Learning Officer, The Henry Ford, Dearborn

Vice President, Detroit Campuses and Strategic Partnerships, Davenport University, Detroit

Vice President of Instruction, Washtenaw Community College, Ann Arbor

Most recent degree earned: Master of Science in Finance, Walsh College

Most recent degree earned: Doctorate of Management and Executive Leadership, Walsh College

As a former politician, Lisa Howze understands the importance of working with legislators to support the growing challenges of higher education. She regularly connects with policymakers to discuss ongoing financial support for Davenport through the Michigan Tuition Grant. “Lisa Howze is very passionate about her work and she intends to make a difference in Detroit and in education. She is confident, creative and effective. Lisa comes to education with a very different background than most. She is an accountant and former government official. Her perspective is unique, making her ideas for growth creative. Her attention to detail is superlative, boosting her leadership and her ability to see opportunities,” said Kelly Wandel, partner manager for Davenport University College of Health. Since joining the university two years ago, Howze established key performance indicators that align her team around improving employee engagement, graduation rates, student satisfaction and overall university growth. Furthermore, Howze opened Davenport’s Detroit Campus, staffed it, marketed it and even ran Institute for Professional Excellence courses for City of Detroit managers and supervisors. She developed partnership agreements with DTE Energy and TEAM Schostak Family Restaurants to execute the university’s first Corporate Education Scholarship, developed new scholarship funding for Davenport’s east Michigan students and created an application process to help eligible students apply. Howze is also a lifetime member of the National Association of Black Accountants where she mentors students and young professionals.

Kimberly Hurns provides inventive and inclusive avenues for decision-making at Washtenaw Community College while promoting opportunities for women to grow in their fields through her leadership as chair of MI-ACE (American Council on Education). She sought global opportunities for the college, which, under her leadership, participated in the China Delegation program, the Aspen Institute initiative and the expansion of the Autonomous Vehicles project. Hurns also empowered the college to become the first academic institution in the state of Michigan, as well as one of the few community colleges in the nation, to be designated a Center of Nursing Excellence by the National League of Nursing. She also supported a collaborative program between WCC and a local university that aids in reaching the Institute of Medicine’s goal of having 80 percent of registered nurses earn their bachelor of science in nursing degrees by 2020. In addition, Hurns promoted implementation of open education resources, which saved students millions of dollars and established the New Faculty Orientation program and the Entrepreneurship Center. “Dr. Kimberly Hurns demonstrates, through her words and work, what it means to be a progressive, visionary leader in higher education. Her commitment to students is unmatched and her ability to guide progress is evident in her work. She has provided both empowerment and mentorship to me and others, allowing us to help the organization grow and mature,” said Joyce Hommel, WCC executive director of Library and Learning Resources.

Most recent degree earned: Master of Science in Organizational Psychology, University of London

Lucie Howell, who leads The Henry Ford’s learning strategy, education programs and initiatives, advocates for the inclusion of innovation in the curricula at Michigan’s public schools and looks for ways to enhance museum programming. “Lucie has played a critical role in creating and developing the many learning resources THF makes available to its daily visitors, more than 220,000 school children who visit on school field trips, and the professional educators who teach our youth,” said Patricia Mooradian, president and CEO of The Henry Ford. Howell brought the Invention Convention to Michigan educators and students and led The Henry Ford’s Initiative for Entrepreneurship, which coaches current entrepreneurs and then works with them to cultivate, mentor and coach innovators, inventors and entrepreneurs of the future. For middle schoolers, she developed INNOVATE, an online curriculum that pairs stories of technical innovation and social change with hands-on project-based learning that encourages students to solve real-world problems. “Lucie Howell’s expertise in science education has helped Henry Ford Academy move forward in developing as a STEM-focused school. She has opened doors for multiple students to be engaged in design-thinking activities from Invention Convention to Black Girls Code to providing special guests and speakers for our school. Mrs. Howell pushes us as an organization to keep innovation front and center and reminds us to keep thinking about doing education differently, so that all of our students can reach their full potential,” said Henry Ford Academy Principal Cora Christmas.

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JEANNE JEUP

CHRISTINE JOHNS

MARSHA KELLIHER

Co-Founder, Institute for Multi-Sensory Education, Southfield

Superintendent of Schools, Utica Community Schools, Sterling Heights

President and CEO, Walsh College, Troy

Most recent degree earned: Bachelor of Science in Elementary Education, Cleveland State University

Jeanne Jeup co-founded the Institute for Multi-Sensory Education more than 20 years ago to empower elementary school teachers with a curriculum effective enough to help struggling readers. Since then, IMSE has worked with school districts across the country to train more than 85,000 teachers. Jeup leads a staff of full-time workers and contractors on the curriculum side of the business and travels to observe teachers and coach them on increasing effectiveness in their classrooms. The curriculum engages students’ auditory, kinesthetic and visual senses to help students learn in the way that best suits them. In addition to in-person trainings, Jeup and her team developed a line of digital and physical classroom materials to support teachers. For example, Jeup worked with Atlanta Public Schools administrators to integrate IMSE programming and then created a suite of online support services, such as refresher videos, lesson planning tools and a progress-tracking app, to complement the IMSE training that more than 600 teachers received. “After talking to Jeanne briefly about our school’s needs, without hesitation she became a major advocate for our building,” said Lindsay Schindler, a learning specialist at Norup Elementary in Berkley. “Jeanne provided us with multiple levels of support: coaching, reflection meetings, child studies, observations, assessments and genuine feedback to help us be better teachers and help our students succeed. Through Orton-Gillingham (reading programs), our students were motivated and found success through multisensory routines. And they were able to apply and transfer their knowledge of letter/sound relationships into everyday reading and writing.”

Most recent degree earned: Doctor of Education in Educational Administration, Planning and Social Policy, Harvard University

Christine Johns, who was named one of Crain’s 100 Most Influential Women in Michigan in 2016, presents at state and national conferences on the effective use of technology, access and equity for students and instructional leadership. She has also represented her district as an original member of the League of Innovative Schools, an initiative of the bipartisan, U.S. Congressionally authorized Digital Promise. In recent years, Johns developed numerous initiatives, including the Seal of Global Language given to students who demonstrate a high level of proficiency in at least one world language; a partnership with Code.org to expand opportunities in computer science for K-12 students; and Stevenson MADE, a four-year program that combines academic content with instruction in welding, machining, automation and design engineering. Moreover, Johns received two U.S. Department of Education grants, totaling more than $13 million, to launch two new programs. The Utica Center for Science and Industry is a halfday program that allows 10th-graders to choose career and technical education pathways in multimedia production, mechatronics or engineering technology. And the Utica Academy for International Studies is the only International Baccalaureate Programme in Michigan’s public schools that stands alone and is not part of a consortium. “I am a professor of physics at the University of Detroit Mercy. I see first-hand how UCS students are competitive and truly prepared for success in their post-secondary education, thanks to the leadership of Dr. John,” said Robert Ross, president of Utica Community Schools Board of Education.

Most recent degree earned: Master of Laws in Labor and Employment Law, University of San Diego

Marsha Kelliher led Walsh College’s new strategic planning process by holding student roundtables, alumni meetings, community and business sessions and working with staff, faculty and administrators. So far, the plan resulted in the launch of new academic programs, including a concentration in Automotive Cybersecurity, a Master of Arts in Business, a Bachelor of Science in Applied Management and a Master of Science in Organizational Leadership. Kelliher also created a committee dedicated to looking at how to use technology to enhance learning and improve outcomes. In addition, she creatively conceived of and oversaw the successful development of year-round registration so students could plan their academic years in advance. “Higher education institutions today are facing new and significant challenges. If institutions are to be relevant and survive in the future, they need to help shape the environment and prepare for significant change. Marsha Kelliher is not only aware of the challenges, she also sees the opportunities that change can bring for the institution and its students. Marsha has the energy and experience needed to lead during these critical times,” said Tom Bordenkircher, vice president for Accreditation Relations at the Higher Learning Commission. Because Kelliher is a member of the executive committee of Michigan Independent Colleges and Universities, Walsh participates in MICU Advocacy Day, which seeks to ensure local legislators remain informed of the benefits of independent, nonprofit higher education.

CONGRATULATIONS

congratulates

Katherine Snyder, dean of the College of Engineering & Science and Pamela Zarkowski, Provost and vice president for Academic Affairs, for their selection as notable women in education leadership!

Catherine (Kate) Davy Provost and Vice Chancellor for Academic Affairs University of Michigan-Dearborn

The entire University of Michigan-Dearborn community congratulates Provost Kate Davy on her selection as a Crain’s Notable Woman in Education Leadership!

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Katherine Snyder, dean of the College of Engineering & Science

Pamela Zarkowski, Provost and vice president for Academic Affairs

Thank you for your relentless commitment in helping to build the boundless future of our students!

Throughout her tenure, Provost Davy’s energetic, authentic and visionary leadership has led to the development of numerous creative student-centered initiatives that have prepared UM-Dearborn students to be difference makers throughout southeast Michigan and beyond.

C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 2 3 , 2 0 1 9

CRAIN’S 2019 NOTABLE WOMEN IN EDUCATION LEADERSHIP C. SUZANNE KLEIN

CHERYL KREGER

JEANNINE KUNZ

Associate Professor of the Department of Educational Leadership/ Organizational Leadership and Director of the Galileo Institute for Teacher Leadership, Oakland University, Rochester

President, Mercy High School, Farmington Hills

Vice President of Tooling U-SME, SME, Southfield

Most recent degree earned: Doctor of Education in Administration and Supervision, Wayne State University

Most recent degree earned: Bachelor of Arts in Business and Marketing, Eastern Michigan University

Vice Bloo

A Mercy High School alumna, Cheryl Kreger invests time and resources into all the private school’s stakeholders. “Dr. Kreger … possesses the strategic vision to move the organization into the future and the empathy to recognize the complexity of change. Her style and acumen are powerful assets, appreciated by faculty, students, parents and the Mercy board,” said Margaret Dimond, president and CEO of McLaren Oakland Hospital and a member of the Mercy Board of Trustees. Kreger, who is a member of the Mercy Education System of the Americas, visits other Mercy-sponsored schools and researches best practices in high schools nationwide. Her research resulted in the creation of a new strategic and operational plan to ensure the high school’s long-term sustainability. She accomplishes goals by inspiring enthusiasm, encouraging employees to be life-long learners and creating opportunities for staff and students. She takes a hands-on approach to leadership: She writes grants, initiated a plan for endowed funds to support faculty members’ ability to teach and directly fundraises. In recent years, Kreger brought Mercy to a stable financial position, hired talented key administrators, increased focus on fundraising, strengthened local governance and transitioned the school into a new external governance structure. Moreover, Kreger is a trusted adviser. She was appointed to the board of an all-male Catholic school in the region because of her knowledge of curriculum and administrative expertise.

Jeannine Kunz oversees the strategic development and direction of Tooling U-SME, a provider of on-the-job training, classroom and online coursework and apprenticeships for more than half of the Fortune 500 manufacturers and for hundreds of high schools, community colleges and universities around the country. As an authority on workforce challenges and solutions, Kunz helps stakeholders understand the intricacies involved in creating educational programs to combat the talent shortage in manufacturing. To do this, she works, in part, with the Coalition for Career Development, which strives to make career readiness the priority in American education. Kunz, a founding member of the organization, was part of the development and launch of CCD’s “Career Readiness for All” white paper, which was briefed before Congress earlier this year. Furthermore, Kunz and her team are leading the implementation of a training initiative for the Department of Defense’s Manufacturing Engineering Education Program. The initiative should better position the current and future manufacturing workforce to produce military systems and components that assure technological superiority. “Jeannine is not only an excellent leader who works diligently to move Tooling U-SME’s workforce and education initiatives forward, she is always ready, willing and able to effectively collaborate with a vast network of organizations and people to accomplish the greater good for the future,” said Craig McAtee, executive director of the National Coalition of the Advanced Technology Centers.

DIANA LAWSON

JENNIFER LEWIS

RHONDA LONGWORTH

Dean, Seidman College of Business, Grand Valley State University, Allendale

Executive Director, Educator Excellence, Detroit Public Schools Community District, Detroit

Provost and Executive Vice President, Academic and Student Affairs, Eastern Michigan University, Ypsilanti

Most recent degree earned: Doctor of Philosophy in Marketing with a minor in International Business, Kent State University

Most recent degree earned: Juris Doctor, University of Detroit Mercy School of Law

Most recent degree earned: Bachelor of Arts in Political Science and History, University of Iowa

Leading change is one of Diana Lawson’s greatest strengths. Since Lawson began leading Grand Valley State University’s college of business, the number of students increased more than 25 percent, from 3,500 to 4,400 students, and the college revised the curriculum multiple times. Before embarking on revisions, Lawson invited about 50 business leaders from a variety of industries to a conversation about the talent challenges they may face in the next 10 years. From there, Lawson’s team developed a Learn-Practice-Grow curriculum centered around teaching soft and technical skills using hands-on project-based learning and professional development. Revisions include launching two cohort-based EMBA programs, with a strong focus on leadership. In addition to investing in students, Lawson is investing in faculty and staff. She implemented hybrid and online delivery of courses and programs, provided professional development for faculty to gain new skills in applied learning and strengthened relationships with businesses to increase experiential learning opportunities, such as internships. In addition to her work at GVSU, Lawson provides an academic perspective as a member of the Board of the World Affairs Council of Western Michigan.

Jennifer Lewis, an associate professor of Mathematics Education at Wayne State University, has devoted her research and career to building high-quality schools for Detroit children. In doing so, she is a champion of teachers and concentrates mostly on ensuring they have the right skills, knowledge and disposition to work with children of color living in poverty. In 2015, Lewis helped launch WSU’s TeachDETROIT residency program, which provides hands-on training and experience for future teachers preparing to work in Detroit schools. Now, as executive director of Educator Excellence for Detroit Public Schools Community District, Lawson strengthens what teachers already know and helps them become cutting-edge teachers who are responsive to the needs of their students. Lewis has received multiple grants from the Michigan Department of Education to design professional development programming to ensure educational equity for children of immigrant families, LGBTQ youth and boys of color, especially in math. In January 2019, she led the district’s first National Day of Racial Healing for students, where 500 middle school students from a variety of backgrounds and cultures and their teachers came together for conversation, performances and team building. “Dr. Lewis keeps all teachers grounded in valuing every single student for the beauty they bring into our classrooms, even on the roughest days. She uniquely empathizes with teachers’ struggles while pushing us to expect the absolute best from ourselves to meet the needs of our students, our district and most importantly our communities. Her tireless advocacy for our students and our classrooms inspires teachers from every corner of Detroit to work together, across lines of difference, experience, and a diversity of educational backgrounds,” said Patrick Mullan-Koufopoulos, a teacher at Denby High School in Detroit.

Rhonda Longworth strives to create signature learning opportunities — including applied learning, internships, research opportunities and more — that link the knowledge students gain in the classroom to their real-world experiences. “Rhonda Longworth’s commitment to student success, innovation in program delivery, and institutional accountability are not only evident at EMU but also through her tireless involvement in statewide initiatives that positively affect all of the state’s higher education institutions and the students and communities they serve,” said Daniel Hurley, CEO of the Michigan Association of State Universities. Longworth employs data-driven and relationship-focused strategies to improve graduation completion and student retention rates. Her plan addresses educational challenges faced by students from various backgrounds and circumstances through living-learning communities, Brotherhood and Sisterhood programs, a drop-in child care center, mentoring programs, financial aid programming and an early alert system making educators aware a student may be facing challenges. The university has increased community engagement efforts through programming that includes partnerships with community colleges, K-12 involvement and a family empowerment initiative. Under Longworth’s direction, EMU received increased recognition, including being ranked in the top 10 nationwide for Clinical Research Administration. She also led efforts, such as granting sabbaticals, to support faculty research. As a result, the Carnegie Classification of Institutions of Higher Education listed EMU in its top 6 percent of universities in research activity.

Most recent degree earned: Doctor of Philosophy in Psychology and Education, University of Michigan

C. Suzanne Klein, who earned Oakland University’s Teaching Excellence Award in 2017 and 2018, is known for her deep-seated passion for integrity and for bringing out the best in others. As director, Klein has helped grow the school’s Galileo Institute for Teacher Leadership to more than 40 school districts in Michigan. The institute supports the advancement of teacher leadership to ensure there are high-quality teachers in public schools. “Rather than settle for the high levels of achievement demonstrated by students, Suzanne developed systems designed to ensure that no student was left behind,” said Robert Maxfield, faculty emerita, Oakland University. Klein actively works toward effective educational policy changes: She expanded the scope of the Galileo Trusted Voices 3.0 conferences to include political and educational influencers of educational policy to engage in dialogue and to include podcasts on the impact of educational leadership. Klein, who is president of the Michigan Association of Professors of Educational Administration, led discussion with the Higher Education Parliamentary Committee of the Iraqi House of Representatives and BMU French-Lebanese University Officials on the merits of strong educational leadership training. She also collaborated on statewide projects designed to extend College Board Advanced Placement programs to all districts regardless of their demographic characteristics.

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M. CATHEY MAZE

CYNTHIA MCCURREN

ANGELA ROGENSUES

Vice Chancellor for Academic Affairs, Oakland Community College, Bloomfield Hills

Dean and Professor, Kirkhof College of Nursing, Grand Valley State University, Allendale

Executive Director, Playworks Michigan, Detroit

Most recent degree earned: Doctor of Philosophy in Anthropology, Ohio State University

Most recent degree earned: Doctor of Philosophy in Nursing, University of Kentucky

M. Cathey Maze uses insight from her extensive classroom, administrative and peer mentor experience to help Oakland Community College faculty be outstanding educators. In addition to providing comprehensive training to help faculty teach online classes, Maze also led the expansion of online coursework. And by creating a virtual campus, she ensures students taking online classes have access to all student services. Understanding that we live in an increasingly global world, she led the launch of OCC’s Global Literacy Endorsement initiative, which offers students global learning experiences and recognizes their efforts with an endorsement on their official transcript. Moreover, Maze lobbied legislators to make state wage data for Southeast Michigan available to the state’s colleges and universities so they could understand the types of programs that would help students prepare for in-demand careers. The information also helps OCC ensure that students who need a bachelor’s degree to obtain specific available jobs can earn credits at OCC that are transferable to a four-year Michigan institution. Maze, who is a member of the Board of Directors of Global Ties-Detroit, also shares information on Oakland Community College’s best practices, innovative initiatives and extensive resources. “Dr. Maze’s commitment to educational excellence is evident when she meets with numerous U.S. Department of State-sponsored international delegations and shares her expertise and insights with these emerging leaders from around the world,” said Marian Reich, executive director of Global Ties-Detroit.

Cynthia McCurren works with the health community to identify, create and execute educational programs that contribute to nurse-led models of care delivery and address the need for more nursing expertise in Michigan. In recent years, McCurren implemented an expanded nurse-managed health care delivery model to deploy teams to the Grand Valley State University’s KCON Family Health Center. There, nurse-led teams of faculty and students provide primary care to 120 older adult residents in low-income housing. She also developed a clinic in partnership with GVSU/ KCON, Muskegon Community College and Mercy Health Muskegon to build a co-designed nurse practitioner-led clinic that serves faculty, staff, students and residents of the community. And McCurren partnered with Seeds of Promise in Grand Rapids to empower residents through Impact Teams where she helped inform a grassroots vision for health. McCurren, a past president of the Michigan Association of College of Nursing, serves on the leadership team for the Revision of the American Association of Colleges of Nursing Essentials Documents. “Cynthia McCurren’s leadership impact has advanced innovations in academic nursing at every level,” said Juliann Sebastian, dean and professor of the College of Nursing at the University of Nebraska Medical Center. “In my ten years of work with the Board of Directors at AACN, culminating as chair of the Board (2016-18), I saw firsthand how effective she was in leading and promoting teamwork for transformative outcomes.”

Most recent degree earned: Master of Arts in Educating Adults, DePaul University

Angela Rogensues began at Playworks Michigan as a program director in 2012. The nonprofit leverages the power of play to transform children’s social and emotional health. It wasn’t long before Rogensues’ ability to develop relationships with school partners and funders, tenacity and institutional knowledge revealed she would be a valuable executive director. In the past four years, Rogensues has spearheaded two multi-year, multi-region grants, totaling $5.6 million, from the Ralph C. Wilson Jr. Foundation, more than doubled the number of children reached, exponentially expanded the number of school partners to 72 from 29 and increased fundraising revenue 172 percent to $962,000 from $350,050. Knowing that providing direct services to every school is cost prohibitive, Rogensues created a financial sustainability model that includes Playworks training adults in schools to take on Playworks’ best practices, methodologies and strategies for facilitating recess and play. In addition, Rogensues, a 2017 Crain’s 40 Under 40 honoree, has a heart for the community. She serves on the boards of the Founders Junior Council of the Detroit Institute of Arts, the animal charity 4Paws1Heart and other organizations. “Angela is a founding board member of Women in Sports and Events Detroit and has been crucial to the growth of our chapter, serving many key roles aimed at raising awareness for our mission and making a difference in community. She has taken on multiple hats for our startup organization, serving as a strategic adviser, public relations representative and diligent recruiter,” said Chloe Siamof, former president of WISE Detroit.

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CONGRATULATIONS, REBECCA CAMPBELL! Thank you for your commitment to change and activism in the fight to end violence against women and children. Michigan State University is honored to call you a Spartan.

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CRAIN’S 2019 NOTABLE WOMEN IN EDUCATION LEADERSHIP KERRI SCHUILING

ANDREA SCOBIE

SARENA SHIVERS

Provost and Vice President for Academic Affairs, Northern Michigan University, Marquette

Director of Education, Michigan Opera Theatre, Detroit

Superintendent, Redford Union School District, Redford

Most recent degree earned: Bachelor of Arts in Theatre Performance, Oakland University

Most recent degree earned: Doctor of Philosophy in Educational Leadership and Policy Studies, Indiana University-Bloomington

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Andrea Scobie employs her deep knowledge of literature and the arts to advocate for innovative and interactive programming that will educate and inspire young people, particularly those from marginalized communities. Promoted to her current role at Michigan Opera Theatre in 2018, Scobie works with schools, arts organizations, public libraries and community groups throughout the region to create tailor-made youth educational programming related to opera, dance, theater and culture. Scobie, who is a member of MOT’s Diversity, Equity and Inclusion Task Force, led MOT’s “Take Me Out to the Opera” initiative in partnership with 36 organizations. The initiative focused on the intersection of arts and sports and stories of groundbreaking African Americans who paved the way for integration in their careers. “Andrea understands that culturally relative, creative engagement is vital if we are to inspire and educate our youngest generation. She always looks at a project through the eyes of a student or group and lets that perspective guide her choices for artistic and curricular content. She is among the ranks of those special educators who have always understood that diversity, equity, and inclusion is not a choice, but rather a universal mandate,” said Richard Leech, director of Resident Artist Programs at Michigan Opera Theatre. Moreover, she organized residencies in area schools where students create their own operas and leads Operetta and Create & Perform summer theater camps that train students, ages 8 to 18, in various aspects of theater, including singing, acting, dancing and audition skills.

Sarena Shivers didn’t let the grass grow under her feet when she was appointed superintendent of Redford Union School District four years ago. She created a five-year strategic plan that includes equity, funding, improved attendance, revised curriculums, professional development and school safety. “After reviewing district data on attendance Dr. Shivers called an emergency meeting with her administrators in May 2017. She stated that ‘all the time and money we spend on programs and materials will not raise students’ achievement if the students aren’t coming to school.’ Dr. Shivers immediately embarked upon an intensive campaign to improve attendance in the community ... Attendance challenge cards were sent home with students; home visits were made to families who were not getting their children to school regularly; and a public relations effort was implemented to spread the message about the importance of regular school attendance,” said MacGowan Elementary School Principal Kathy Robbins. Further, Shivers improved high school graduation rates 12 percent in three years through a variety of initiatives. She developed and employed an online intervention system for elementary school students, implemented a Second Chance program for middle school students facing long-term suspension or expulsion, and opened a virtual learning center for students at risk of dropping out of high school. She also created an early college and careers program for students who might not have opportunities to attend college. Early college, which provides support and counseling, is in partnership with Wayne County Community College, Schoolcraft College and Michigan State University and allows students to begin their college career while still in high school.

Most recent degree earned: Doctor of Philosophy in Nursing/ Women’s Health, University of Michigan

Kerri Schuiling is a bold, student-centered and innovative leader who says “go” when others hesitate. Schuiling, who has received more than $3 million in funding for programs and research, is also adept at taking new programs from idea stage to implementation. “A large part of the success Northern is enjoying today is because of Dr. Schuiling’s ability to recognize opportunity, assess potential and jump in with both feet to help get a good idea off the ground,” said NMU President Fritz Erickson. Most recently, Schuiling led Northern Michigan University’s implementation of two cutting-edge programs. NMU’s Forensic Anthropology program is only the seventh outdoor laboratory for the study of human decomposition and the only one located in a cold-weather climate. The university is the first in the world to offer a bachelor’s degree in Medicinal Plant Chemistry. The program is in response to the need for lab analysts working in the emerging cannabis and alternative health markets. In addition, Schuiling also played a crucial role in the partnership between NMU and Shimadzu Scientific Instruments Inc. The collaboration resulted in a donation of $850,000 in instrumentation for a new medicinal plant chemistry laboratory. And she helped launch the university’s Program Investment Funding program, an internal university grant program for innovation projects like Women in Construction Day and the Behavioral Education Assessment and Research Center.

Thank you for engineering a strong community through education!

Congratulations Dr. Christine M. Johns Superintendent, Utica Community Schools 2019 Notable Women in Education Leadership

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KATHERINE SNYDER

TONI SOMERS

JACQUI SPICER

Dean, College of Engineering & Science, University of Detroit Mercy, Detroit

Associate Dean, Professor, Mike Ilitch School of Business, Wayne State University, Detroit

COO, Baker College, Flint

Most recent degree earned: Doctor of Philosophy in Mathematics and Computer Education, Wayne State University

Most recent degree earned: Master of Business Administration in Marketing, Bowling Green State University

Katherine Snyder, the University of Detroit Mercy’s first female dean, is one of only two engineering deans in Michigan. “She has forged important relationships with community partners, industry and government agencies that have strategically advanced the standing of the college and developed important opportunities for students and faculty at the school and in their future endeavors,” said Noreen Rossi, a professor and vice chair of Internal Medicine in the Division of Nephrology at John D. Dingell VA Medical Center. Since Snyder’s appointment in 2018, Snyder instituted new outreach programs, including launching high school teacher-training opportunities and the Student Ambassador Program that employs current Detroit Mercy students to visit high schools and promote STEM fields and related careers. She also expanded dual-enrollment offerings between the college and local high schools. Most of the senior class at Cristo Rey High School is bused to campus for part of the day to take engineering and science classes from college faculty. Snyder also directed the ReBUILDetroit program, a $21.2 million National Institutes of Health-funded undergraduate program created to increase the number of underrepresented students studying to become scientific researchers. She followed up by obtaining a second five-year program grant of more than $19 million. Moreover, Snyder launched a college Enhancing Faculty Diversity Taskforce and worked with the university president to secure a $500,000 donation for Detroit Mercy’s Center for Innovation and Collaboration.

Toni Somers is a servant leader and trailblazer. The first woman in the Mike Ilitch School of Business to achieve the rank of full professor, she is responsible for Wayne State University’s academic business departments, career planning and placement and student advising. As co-director of WSU’s Institute for Leadership and Diversity, which provides community and executive leadership education and development opportunities, Somers nurtures collaborative relationships with corporate, government and nongovernmental organizations concerned with advancing leadership and inclusion agendas. In addition, she leads and directs other outreach initiatives, such as the MISB Detroit Police Department Leadership Academy, which provides an opportunity for police officers and administrators to return to higher education and learn leadership skills that help them be more effective in the field. Somers also plans and leads Commercial Real Estate Women events to expose high school and college women to the field and works with interns of Grow Detroit’s Young Talent to provide a tech camp exposing them to Microsoft tools and certificates. “I have had the pleasure of working with Toni in developing ‘The D and the Leader in Me,’ a program for Detroit youth that provides face-to-face interaction with business, government and civic leaders who are fueling the city’s revitalization. Toni has been instrumental in linking the Mike Ilitch School with the greater Detroit community,” said Lashinda Stair, first assistant chief of police for the Detroit Police Department.

Thank you for helping students get where the world is going.

Lisa Howze Vice president, Detroit Campuses & Strategic Partnerships

Karen Daley, PhD Dean, College of Health

Business | Technology | Health | Urban Education

Most recent degree earned: Master of Science in Management Information Systems, Arizona State University

“Jacqui Spicer has played a critical role is preparing Baker College to be a leader in Michigan higher education, now and in the future. Higher education is facing many challenges and requires innovative thinking that focuses on student success and sustainability. Ms. Spicer’s passion for education, keen business intellect and creative thinking make her an outstanding leader,” said Baker College CEO Bart Daig. Spicer provides significant insight and leadership in her many roles, including as chair of the Marketing and IT councils and member of the Strategy Council, President’s Cabinet and Tuition/Finance and Investment committees. Previously Baker College’s Chief Information Officer, Spicer led initiatives to redesign and replace the school’s major technology systems, including moving the learning management system to Canvas from Blackboard and updating the data information system to enhance transparency of information and provide data-driven decision making. Moreover, as part of the Strategy Council, she works to ensure that students have access to a post-secondary education by working with the Diversity and Inclusion Council to design programs and processes that support students who might otherwise struggle to earn a degree. She also directed the effort to launch a first-alert program that allows for quicker intervention and support when students experience significant challenges or difficulty in their courses.

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CRAIN’S 2019 NOTABLE WOMEN IN EDUCATION LEADERSHIP FILZA WALTERS

PAMELA ZARKOWSKI

Founding Director and Professor of Architectural Engineering, Lawrence Technological University, Southfield

Provost and Vice President for Academic Affairs, University of Detroit Mercy, Detroit

Most recent degree earned: Master of Business Administration in Global Business, Lawrence Technological University

Most recent degree earned: Juris Doctor, Wayne State University School of Law

Efforts by public, private and not-for-profit institutions to encourage more women to study STEM subjects have not always been successful, but Filza Walters designed, engineered, recruited and increased enrollment of young women and men for the Lawrence Technological University College of Engineering. “I have known Professor Filza Walters ever since she started her whirlwind service to Lawrence Technological University and the Engineering Society of Detroit. Terms that actually understate her activities include: 1. Ball of Fire; 2. Ultimate Live Wire; and 3. Tireless Advocate of Major Programs,” said Richard Marburger, president emeritus of Lawrence Technological University and past president of the Engineering Society of Detroit. Walters, who brings more than 18 years of industry experience as an architectural designer, consulting engineer and project manager, is the founding director of LTU’s combined, five-year, bachelor’s and master’s degree program in architectural engineering. The program is the first of its kind in Michigan and the second integrated degree accredited program in the world. The program boasts a balanced ratio of women and men, which is uncommon for engineering disciplines, and graduates have enjoyed a 100 percent placement rate within three months of graduation. In addition, Walters, who oversees course development and deployment, worked with the office of admissions to build strategic partnerships that facilitate dual enrollment for high school students. She also encourages high school visits.

The University of Detroit Mercy has established 46 new degrees, certificates, majors and minors, instituted online course offerings available to students throughout the country, and achieved regional and national rankings by U.S. News & World Report — under Pamela Zarkowski’s leadership. She also is working to realign academic programs with the needs of employers. In doing so, she implemented a new core curriculum that ensures undergraduate students acquire communication skills, mathematical and scientific knowledge, religious and philosophical knowledge, exposure to the humanities and a sense of ethics and social responsibility, while integrating themes such as cultural diversity and critical thinking. A nationally recognized speaker and author on law and ethics, Zarkowski’s work led to the state of Michigan engaging her to help with the prevention of sexual harassment. In addition to her duties at Detroit Mercy, Zarkowski is immediate past president of the American Society for Dental Ethics and serves in the Leadership Institute of the American Dental Education Association. “She is respected as a leader in the teaching of ethics in dental education and practice, developing curricula that are being utilized by academic dental institutions throughout the country,” said former ADEA President and CEO Richard Valachovic.

ABOUT THIS PROGRAM The women featured in this Notable Women in Education Leadership report were selected by a team of Crain’s Detroit Business editors based on their career accomplishments, track record of success in the field, contributions to their community and mentorship of others, as outlined in a detailed nomination form. Notable Women in Education Leadership 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. You can read more in our Notable Women series or nominate a Notable Woman for an upcoming section at crainsdetroit.com/nominate.

“Terms that actually understate her activities include: 1. Ball of Fire; 2. Ultimate Live Wire; and 3. Tireless Advocate of Major Programs.” – Richard Marburgher, President Emeritus, Lawrence Technological University

“Jacqui Spicer has played a critical role is preparing Baker College to be a leader in Michigan higher education, now and in the future.” – Bart Daig, CEO, Baker College

IT TAKES STRONG LEADERSHIP TO GET TO THIS MOMENT Wayne State University congratulates our Notable Women in Education Leadership Monica Brockmeyer, Ph.D., Senior Associate Provost for Student Success Toni Somers, Ph.D., Associate Dean, Mike Ilitch School of Business Jennifer Lewis, Ph.D., Professor of Mathematics Education, currently serving as Executive Director, Educator Excellence, Detroit Public Schools Community District Thank you for your commitment to our students, our school and our city. Your impact shines in the futures you helped create.

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Drolet:

Traditional mass transit is dying Page 24

SEPTEMBER 2019

TRANSIT

A HIGHER GEAR

A renewed effort to get a transit millage on the ballot next year comes as two new leaders have emerged to potentially play a role in brokering such a deal PHOTO ILLUSTRATION BY LARRY PEPLIN FOR CRAIN’S

Could a ‘coalition of the willing’ knit together metro Detroit transit?

By Chad Livengood | clivengood@crain.com

etro Detroit political leaders who have long pushed for a four-county solution on regional transit are exploring the creation of a “coalition of the willing” that would carve out Macomb County in a bid to secure voter approval on the ballot in 2020. Wayne County Executive Warren Evans’ administration and the chairman of the Regional Transit Authority are exploring using the state’s Municipal Partnership Act to create a shrunken regional transit district in order to bypass opposition from Macomb County Executive Mark Hackel. The plan could involve placing separate countywide millages on the November 2020 ballots in Wayne, Oakland and Washtenaw counties, although officials are not yet sure whether such a plan would hold up in court. It’s possible they may have to go to individual municipalities, potentially further complicating the creation of a coalition of communities opting to fund improved mass transit, Evans said. “We gotta get it done,” Evans told Crain’s. “So if (Macomb is) not going to be a part of RTA, we’re trying to figure out what modifications need to be made to try to go forward with less jurisdictions but more impetus toward transit.” ANDREW JOWETT FOR CRAIN’S DETROIT BUSINESS

“If we could get things done without a Lansing fight, that would always be best.” — Wayne County Executive Warren Evans

Transit advocates are trying to avoid going back to the Legislature to change the 2012 law that created the four-county Regional Transit Authority, an entity that has never been able to get into gear because it lacks any direct funding mechanism. “If we could get things done without a Lansing fight, that would always be best,” Evans said. One idea floated since the 2016 regional transit plan was narrowly defeated by voters has been to shrink the size of the taxing district to include just the urban and populous suburban areas, carving out rural areas north of M-59 such as Ray Township in northern Macomb and Rose Township in Oakland County or the village of Manchester, 60 miles west of Detroit in rural southwest Washtenaw County. SEE TRANSIT, PAGE 27

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TRANSIT | A SKEPTICAL VIEW

Transit is fading as transportation options shift

raditional mass transit has been declining nationally since 2014, and Detroit would be foolish to waste resources on a dying transit model. Fewer people are riding buses, streetcars and rail, and it doesn’t seem to matter how much money is spent trying to reverse the trend.

promised 8,000 According to American Public Traditional Transit Association data, traditional mass transit riders per day and averages mass transit ridership declined nais dying and less than half tionally by 2 percent in 2018, includhigher that. ing a drop in Detroit ridership. Since taxes, new Many metro 2014, ridership has fallen 8 percent trolleys, Detroit leaders nationally despite U.S. population more buses are ignoring the growth. Even high-density cities are and ghost evidence and not immune, as more citizens abandances will advocating tax don mass transit in New York; Wash- LEON not reverse hikes to expand ington, D.C.; Chicago; San Francisco DROLET this reality. mass transit. and Los Angeles. More transit spending hasn’t reversed the They claim mass transit can solve regional trend. Los Angeles increased a local sales tax in economic and social ills despite all evidence 2008 and again in 2016 to fund billions in ex- to the contrary. For example, they cite old data panded mass transit. After the 2016 tax hike, from 2014 to assert mass transit attracts young Los Angeles Mayor Eric Garcetti promised, people to a region. More recent studies indi“The car capital of the world will soon be home cate younger adults embraced mass transit to a transit system that is the envy of the world.” due to income loss during the Great RecesThe result? L.A. mass transit ridership dropped sion, and abandoned it for cars as soon as the 25 percent between 2012 and 2018, while pri- economy recovered or adopted newer options vate car ownership exploded from 1.7 to 2.4 such as Uber and Lyft. Claims that mass transit generates economic cars per household. Mayor Garcetti isn’t alone in promising as- growth are frequently based on flawed studies tronomical benefits from mass transit while de- that only count gains from transit spending livering dismal results. Projections for mass while ignoring economic losses due to higher transit ridership consistently fall almost comi- mass transit taxes. These studies are almost alcally short. The QLine streetcar in Detroit ways funded by the mass transit industry.

Research by market-based organizations reveals different results. According to Randal O’Toole of the Cato Institute, “Data from more than 300 urban areas show that the regions that grew fastest in the 2000s were ones that had spent the least on transit in the 1990s, while the regions that spent the most on transit in the 1990s were among those that grew the slowest in the 2000s.” It’s time metro Detroit leaders embraced reality: Traditional mass transit is dying and higher taxes, new trolleys, more buses and ghost dances will not reverse this reality. As mass transit fades away, what will happen to people who can’t drive due to age, disability or financial challenges? Even if Lansing’s recent bipartisan auto insurance reforms succeed in lowering access to cars for many, there will still be those who cannot drive or afford a vehicle. A growing number of local governments are partnering with private ride-hailing companies like Uber and Lyft to supplement existing mass transit. But only a few have completely replaced traditional mass transit with ride-hailing. The Toronto suburb of Innisfil went all in on ride-hailing transit in 2017 by subsidizing Uber rides for the town’s 37,000 residents instead of providing bus service. The program was too successful as more residents embraced the service than expected, stressing the municipalities’ finances. Why should taxpayers be forced to subsidize

private Uber rides? Well, they shouldn’t — at least for those who can afford to pay themselves. But if subsidies for ride-hailing were provided only to those with financial need, it would save taxpayers’ money compared to our existing bus system. Detroit’s bus systems require an 85 percent subsidy per rider, among the highest subsidies in the nation, because riders contribute such a small percentage of the cost. A transit program that provides subsidized ride-hailing travel cards to people who qualify for food assistance or some other existing measure of economic need could improve lives and cost less. Riders would be required to pay for part of their ride, but would no longer freeze at bus stops or walk in rain for blocks to their destination after being dropped off by a bus. Ride-hailing companies would pick them up at their front door and deliver them directly at their destination, saving them a significant amount of time. The future of transit isn’t streetcars and buses, trains and trolleys. We should leapfrog past legacy mass transit and develop cost-effective, nimble transit policies that embrace rapidly evolving trends such as ride-hailing. The beneficiaries of such forward thinking would be citizens who need transit assistance, taxpayers and our economy. Leon Drolet is a Macomb County commissioner and chairman of the Michigan Taxpayers Alliance.

TRANSIT | KEY TO COMPETITIVENESS

Best regional transit plan focuses on community impact T he most important parts of a regional transit plan aren’t the specific routes or technologies. Most important is the impact it will have on lives, businesses and communities.

The regional transit system that Dozens of different transit plans helps metro Detroit compete with any have been and will be considered for city in the world would allow a comSoutheast Michigan. We should evalpany to invest anywhere in the Detroit uate transit proposals on two essenregion without worry whether they’ll tial principles: have access to a reliable workforce, re1) Everyone must be able to get gardless of whether they build in the where they need to go. city or in Novi, Ypsilanti or Sterling 2) Metro Detroit must be able to Heights. They would be confident that compete with any city in world. even if an employee’s car stops workWhat would a regional transit sys- MEGAN OWENS ing that employee can keep working. tem that fits these principles mean? That is enabled by transit service that It means if you like driving, great! Keep driving. An improved regional The regional is eminently reliable, goes everywhere people need to go and with hours that transit system would even clear some transit other cars out of your way. system that can fit any schedule. For our region to successfully comIt also means if you don’t drive — helps metro whether you’re physically unable to Detroit pete with any other global city, we drive, you’d rather not pay exorbitant compete would also offer the wide variety of insurance prices, or your car hap- would allow housing and travel options that modern cities provide. Today, if you want to pens to break down — you would still a company live in a single-family home and drive, have viable choices for how to get to invest around. You would have convenient, anywhere in you’re in luck — Southeast Michigan provides tons of choices. Our region reliable bus service that gets you the Detroit must also provide just as many options where you need to go and doesn’t region for people who want to live in a vibrant, take forever. You would also have without walkable 24-hour neighborhood where other mobility options — be that an worry you can access stores, work and fun, all easy-to-access carpool, safe bike whether without a car. That would be enabled by lane, affordable shared Lyft line, or they’ll have our regional transit system providing something else. access to a high-frequency rapid transit linking The regional transit system that reliable our denser communities and enabling ensures this universal access would workforce. more density along certain corridors. extend transit service into all areas with significant populations and employment Those would be supported by multitude of mobilcenters, with enough frequency and speed to ity options — safe walking, convenient biking, truly be convenient. It would also facilitate and e-scooter rental, ride-hailing, short-term car rentsupport other mobility options that add afford- als, and more — all well-coordinated and easy for able, sustainable choices throughout the re- anyone to access. Lastly, while some of us will regularly ride this gion, keeping the Motor City at the forefront of mobility as technologies and services continue enhanced regional transit system, all of us need it. Even if you drive most the time, you rely on peoto change.

LARRY PEPLIN FOR CRAIN’S

ple who rely on transit — whether that’s your kids’ teacher, the hospital nurse or the chef at your favorite restaurant. Like the fire department or your neighborhood park, whether you personally use it or not, public transit keeps our communities operating and attractive and is an essential component of any successful modern city. Our region has important transit decisions to make in the coming weeks and months — including how much of the region should be part of a transit plan, the types of services to prioritize

and the funding method needed to make the system successful. As long as we keep in mind those two key principles — universal access and global competitiveness — we’ll develop a regional transit system that will truly sustain and enhance our region for decades to come. Megan Owens is executive director of Transportation Riders United (TRU), a nonprofit that advocates for improving metro Detroit’s public transportation systems.

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TRANSIT | RESTRUCTURE PLANS

RTA should stop ‘spurious’ sell job to far-flung suburbs

’m not the typical transit user in Southeast Michigan. I live and work from my home in Milford and travel to my corporate office in New York. While I support transit, and use it extensively, I’ve struggled to support plans floated by the Regional Transit Authority in this region.

To move transit forward in Southeast Michigan, I would integrate new ideas across four areas of focus. Funding: Michigan’s property tax funding mechanism creates numerous issues. This schema ties tax contributed to home value. What makes this complex with transit is areas paying most would, for the most part, see lower levels of investment through RTA proposals. Compounding the issue is the argument that transit boosts property values. If transit boosts property values, owners who benefit are protected from paying tax on the benefit by Michigan’s property tax schema. The idea behind a millage is the services funded support property valuation. If we stay true to that belief, at least, the idea of trimming the RTA to include only areas receiving service warrants implementation.

MICHAEL BEDARD

The key to making bus the linchpin of Oakland/ Macomb would be to employ full bus rapid transit.

Ideally, we provide a funding mechanism not tied to home valuation the way the current schema dictates. Vehicles: The RTA has largely based plans on using buses, and there’s validity to that method. The impetus for buses in Macomb/Oakland feels, largely, like it is in place to facilitate more expensive rail projects connecting Detroit and Ann Arbor. Complicating the matter is bus services are notoriously easy to reduce costs through degradation in service. The key to making bus the linchpin of Oakland/Macomb would be to employ full bus rapid transit. That requires separate lanes, actual stations, all door boarding, pre-pay only and limited stops. Once components are removed, the value BRT provides becomes minimal. If rail is a must-have for

Wayne/Washtenaw, there must be the expectation that Macomb/Oakland receive the same or comparable through BRT with no ability for the RTA to adjust service downwards. Counties that wish to have a higher level of service should fund that service. Stay regional: RTA plans have included an emphasis on local bus service provided by AATA, SMART and DDOT. Local bus service is critical to many areas of the region, and services should remain explicitly local. The RTA should focus on corridors that impact the entire region. These routes are the linkages hundreds of thousands of residents use today. Allowing local providers to align with a stable, predictable, accountable provider focused on regional routes allows them to focus on communities that fund their operations. By trying to fix everything, the RTA aims to serve every contingency throughout an incredibly diverse footprint. It cannot do that effectively by design. Reform the sell job: We’re told transit provides $4 for every $1 invested. Having asked for the math behind this repeatedly, I’ve never actually seen evidence a bus route provides a 4:1 ROI. Digging into the research, we find there’s a reasonable expectation of return with rail lines, subway or commuter. Bus lines, the vehicle of

choice for counties paying the most into the RTA, provide no valuation gain to the property owners expected to fund the system. When we look at the incremental valuation benefits of transit, we find low levels of benefit, highly tied to rail, and limited benefit to home owners. I would ask the RTA to cease with spurious expectations. Be honest about what homeowners can expect, and give mechanisms to impose accountability if the RTA fails to deliver on promised outcomes. I support transit. I don’t support a low-value status quo, and I don’t support an expansion that puts homeowners on the hook with questionable benefits. My hope is the RTA restructures its plans in a way that treats each county with some degree of equality. For my community I’d like to see us included in a plan that provides a high level of service. The more likely positive outcome is my community’s state legislators carve us out from the RTA fiscally similarly to the RTA cutting us off from services. That’s an unfortunate approach, but it’s driven by the RTA’s failure to provide service for the entire region, not out of disregard for the importance of transit. Michael Bedard of Milford is the head of marketing intelligence for New York-based Converge Marketing.

TRANSIT | GET THE BASICS RIGHT

Detroit bus service needs to hit minimum standards T he Detroit People’s Platform organizes on behalf of essential bus riders, who solely rely on bus service to access employment opportunities, education, work, medical appointments, social and government services and general access to the city of Detroit.

The day a job applicant can confiWe organize with essential bus rid- LARRY dently list the bus as their method of ers, bringing their voice to deci- D. VERSE transportation without jeopardizing sion-makers. Many of the recent im- SERENA their opportunity for employment, provements such as Wi-Fi, new paint COLE then we can begin embellishing our jobs, new route numbers for 10 bus KIM system with perks, such as the new routes and a new fare payment app SMITH DART fare payment app. all have done little to improve reliThe Detroit Department of Transable, on-time bus service. portation does not really need a comThe Detroit city charter declares Adding new that “people have a right to expect regional bus plete overhaul to do what is necessary to make the system function properly. city government to provide for its res- lines will idents … reliable, convenient, and not improve While there have been marginal imbus service provements to our public transportacomfortable transportation.” tion system, that’s only the case beIn order to improve bus service in within cause of the severe cuts to the the city of Detroit, the following sug- Detroit department under a previous admingestions are rooted in the reality that proper, and bus riders in the city of Detroit still the benefits istration. However, most of the ideas have experience once-an-hour bus lines, are marginal come from bus riders and concerned wait times over 30 minutes, severe to someone residents during monthly community lack of bus shelters and seating at bus who can’t meetings. It would be most beneficial stops, lack of safety doors for drivers get on-time to have community meetings more to prevent assaults and even “no- access to than once a month instead of a recent show” buses. All would be consid- their proposal by DDOT leadership to have ered intolerable in other major cities destination within the quarterly meetings, unless they inacross the country. tend to silence the voices of passenThe May 1, 2019, fare increase city. gers who rely on this service. raised the regional 31-day base price Bus riders with disabilities face challenges from nearly $50 to $70 with no marked imthat able-bodied individuals tend to overlook provement in day-to-day reliability. We know the number of people riding the — for instance, the lack of an enforced policy buses would increase significantly if we had that ensures seating is available for passengers more buses running on schedule. But we don’t with a disability, by color-coding the seats to have enough drivers and buses to adequately indicate that the front of the bus should be reserved for such individuals. serve the entire city. To further explain, bus riders who use wheelAdding new regional bus lines will not improve bus service within Detroit proper, and chairs, scooters or walkers take up a significant the benefits are marginal to someone who can’t amount of space could be assigned to seats get on-time access to their destination within with a specific color, while other accessible the city. We don’t need to reinvent the wheel or seating for other passengers with disabilities add anything new until the minimum expecta- could be assigned a different color. It is very imtions of a public transportation department are portant to note that the city of Detroit is a multilingual community. DDOT needs to follow met.

LARRY PEPLIN FOR CRAIN’S

Serena Cole and Larry D. Verse are Detroit city residents and members of the Detroit People’s Platform community activism group’s Transit Justice Team.

Federal Transportation Administration regulations and rules to ensure that all services, literature, infrastructure and signs are multilingual, specifically in Arabic, Bengali and Spanish. Most importantly, the Detroit People’s Platform–Transit Justice Teams strongly supports the passage of a low-income fare program to fund or subsidize reduced fares for homeless, unemployed, low-income, returning citizens and veterans. We believe this is one of many solutions to ensure equity for the majority of residents and bus riders with a majority black ridership, in addition to increasing overall ridership, which could generate more revenue for the department to use for capital improvements. Ensuring that the most vulnerable populations in our city can access the bus system at a reduced rate will benefit essential riders who

are buckling under the weight of increasing expenses like rent, water bills, and most recently, transit fares. So when we consider the necessary improvements for DDOT, we should consider that the department has yet to meet the standards for basic reliable transit service. Regional transportation is needed but is futile if our backbone, the DDOT bus system, continues to be under-funded, under-resourced and poorly managed. We offer those ideas as a path forward for DDOT to reach parity with every other transportation department in the United States. Larry D. Verse, Serena Cole and Kim Smith are Detroit city residents and members of the Detroit People’s Platform community activism group’s Transit Justice Team.

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TRANSIT | A PERSONAL VIEW

Transit rider: How ditching my car saved my life

n January 2016 I realized that driving down I-75 every day to work in Detroit was going to kill me someday. Either slowly through the stress of having to be in traffic every single day or quickly through a traumatic accident caused by some reckless driver. Everyone who commutes has had a similar realization. Most don’t change anything about it. I decided that I needed to get off the road to save myself. In that decision, I discovered what our current public transit system TED could do for me. I learned that I had two TANSLEY options coming from Oakland Township, a community in Oakland County that opts out of the SMART bus sys-

tem. I could drive into Pontiac or drive into Troy and hop on the SMART bus to my job in downtown Detroit. Did it take me more time to commute? Sure, but I needed to drive for only 30 minutes, and I could use the rest of my commute time to take a nap, read a book or text my friends, all while avoiding traffic. The best part about this? I was able to save a

When business leaders think about public transit, they should really be thinking about how it directly impacts them.

boatload of money doing it. Instead of paying $40 a week or so in gas, paying $100 or more in parking and then dealing with pothole season repairs, I was able to pocket most of it with my $60 monthly bus pass. I saved enough money to nearly pay off my student loans in a single year. Seriously. I was easily saving upwards of $200 a month by taking the bus. By saving that money, I had expendable income for the first time in my life. One of the greatest things for me, besides saving money, was that I was able to familiarize myself with the communities and businesses that were on my route. I would have never known I could visit some of my friends by taking the bus. I would have never known about or visited places like Redcoat Tavern in Royal Oak or Vinsetta Garage in Berkley or any of the other businesses that lined my route.

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Even if I was to personally drive it, driving requires much more focus than riding transit, and you miss a lot of the businesses that are right around you when you drive. I’ve since moved to Detroit to be closer to my job in the city. When business leaders think about public transit, they should really be thinking about how it directly impacts them. Most importantly, how it helps them and their business. With improved access to transportation, not only does it grant them a larger talent pool to tap into for employee recruitment, but it also opens the door to more customers. Customers like myself who would have never stopped in if it weren’t for public transportation. Ted Tansley is a new Detroit resident and SEO Analyst for CDK Global.

TRANSIT | CHANGING LANDSCAPE

If you want regional transit, you need a plan that will sell H igh-speed train to the future, or 20th-century boondoggle? It’s 2019, and where do we go with regional transit in Southeast Michigan? It’s an old question, but much is changing. Oakland County’s leadership guard has changed, and downtown Detroit has risen from the dead to form a vibrant and expanding district, for starters.

portation IS the regional transit proWhere to go from here? vider. Without SMART, the buses that The Regional Transit Authority, or roll between Macomb, Oakland, DeRTA, created by statute to bring sepatroit, and crosswise, stop. Which alrate transit providers into one seammost happened in the recent SMART less system, has been trying to get a millage renewal vote in Macomb, millage passed to get an income which initially passed by 39 votes. And stream to be more than a committee failure doesn’t just mean that Maperched atop the real providers, comb drops out; without this part of SMART and DDOT, plus the Washtenthe integral system, the whole of aw County system and the People CHUCK SMART goes down. So, anything RTA Mover. MOSS does should be careful not to hurt a Seems like not much has hapkey component in any ongoing repened. What’s going on? So, the gional system, SMART. First: The basic fundamental stat- future of What about the Macomb-Oakland ute creating the RTA stipulated a lot of regional Cross County Connector? There were things, but importantly, an “85 Per- transit has four corridors specified in the 2012 cent Rule.” That means that 85 percent some legislation: Woodward, Gratiot, Michiof any revenue raised in a county or serious gan Avenue and a Macomb-to-Oakcity collected from millages or vehicle structural land crosstown route. Ridership figregistration tax must be spent in that potholes as ures show back-and-forth passengers county or city. That means any transit big as the commuting between counties at about plan must, repeat MUST, deliver 85 worst ones 66 percent of the up-and-down — into percent of such revenue into services on Detroit. This is a key traffic challenge, for the source county/city. And a fair Telegraph and can’t be forgotten. reading of the statute also implies the Road. Detroit’s People Mover is part of the same for federal and state funds leverRTA system; QLine is not. When the private aged from original county dollars. The basic questions for Oakland County are: backers proposed the M1 Connector, it was speWhat do Oakland taxpayers get in return for cifically guaranteed that they would not only their millage payments? When do they get it? build it, but run it for 10 years before seeking How will this be guaranteed? Note that gauzy public assistance. Without that commitment, sentimental happy-talk visions like “we all bene- many legislators, including me, wouldn’t have fit from transit” or “major cities have transit, we supported it. DDOT and People Mover are Detroit providshould too” or “millennials want transit” don’t ers. Both have large capital needs going formake it. The reason is simple. Any millage proposal that gets approved by ward. Especially worrisome are two factors. the RTA has to pass a popular vote held in No- One is the ongoing subsidy from the city genervember of an even election year (no sneaky al fund to DDOT, between $60 million to $100 by-elections held in July.) So, any proposed plan million, depending on the year. How long can and millage has to appeal to and be ratified by Detroit continue to fiscally prop up DDOT, and the voters of the entire region. The last millage will Detroit be tempted to use regional dollars vote, in 2016, failed in Oakland, largely because to supplant costly subsidies? The second, and it didn’t deliver anything to about 52 percent of long-term scarier factor is future pension conOakland County. And I’m afraid you can’t sell tributions required for DDOT. Source for this is “we all succeed when Detroit succeeds.” Without “The Challenge of Meeting Detroit’s Pension benefit to all the county, the people won’t vote Promises” by the Pew Charitable Trust. After the bankruptcy, pension contributions for it. Look over at Macomb. Another key issue is the status of SMART. The were waived until 2023. At that point, the city Suburban Mobility Authority for Regional Trans- will face a huge bill. The city says don’t worry

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A rider waits for the bus along Gratiot near 12 Mile Road in Roseville last week.

— they’re going to be OK; maybe so. But the potential fragility of Detroit’s future finances is a worry for would-be millage partners concerned about the city’s future levels of transit support. De facto bailouts are not big election winners. So, the future of regional transit has some serious structural potholes as big as the worst ones on Telegraph Road. Lots of emotion, advocacy, TV commercials and rah-rah won’t paper over the fundamental challenges, and while Brooks Patterson may be dead, the situation he

LARRY PEPLIN FOR CRAIN’S

faced hasn’t changed. Plus Macomb is emphatically uninterested in paying good money for regional transit. You can lead a horse to a ballot proposal, but you can’t guarantee he’ll swallow it. Former state Rep. Chuck Moss, R-Birmingham, is one of Oakland County’s two members of the Regional Transit Authority of Southeast Michigan’s board and a 2020 candidate for Oakland County commissioner.

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TRANSIT

er property values generate less tax revenue from a 1.5-mill levy. Fixed-route bus service on main roads is impractical in far-flung suburbs with winding subdivisions, Rochester Hills Mayor Bryan Barnett said. “Frankly, it doesn’t really make sense for our community,” Barnett said. Barnett, the current president of the U.S. Conference of Mayors, considers himself a transit advocate of sorts, having traveled the country and seen transit systems elsewhere “that I’m envious of.” Next month, Barnett is hosting 60 U.S. mayors in Rochester Hills for a fall meeting, and his colleagues have inquired about the transit options to get from Detroit Metro Airport in Romulus to the Oakland County community of 74,000 residents. “You don’t jump on the blue line and then the green line and then you’re here,” Barnett said, referencing the transit systems of other major metropolitan areas. “It’s an Uber or private transportation.” SMART surveys Rochester Hills residents every few years and support for adding its service hovers around an “extremely lukewarm” 35 percent, Barnett said. Residents in the suburb interested in transit options are usually looking for an easier ride to Detroit Metro Airport or to downtown Detroit to attend a sports game or entertainment venue, Barnett said. “We could talk folks into something like that if they understood it was a little more flexible,” he said.

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But Hackel’s opposition to the RTA operating in any part of Macomb County could scuttle any legislative changes. “I think it will be difficult to get amendments to our act unless all of the regional leaders are supportive,” said RTA Chairman Paul Hillegonds, a former Republican House speaker. The Municipal Partnership Act that could be the vehicle for an alternative route to the ballot is usually used among municipalities that share or consolidate police and fire services, Hillegonds said. “I do not believe it’s been used anywhere in the state to do transit,” he said. For his part, Hackel is OK with Wayne, Oakland and Washtenaw counties forging ahead on better-coordinated mass transit without him. “Whatever they want to do to force their communities to be part of the regional transit system, I’m OK with that,” Hackel told Crain’s. “I don’t feel like they’re leaving us out. ... We don’t see the need to pay 1.5 mills (of more property tax) to connect these communities. Some of these communities don’t want to be connected.” Like past attempts to forge a partnership on this divisive issue, there’s not a unified strategy on transit. Detroit Mayor Mike Duggan doesn’t want to abandon the Regional Transit Authority that the county leaders and past Detroit mayors spent decades advocating for, said Dave Massaron, the city’s chief financial officer and Duggan’s point man on transit. “We’re going to continue to push for a four-county plan,” Massaron said.

‘We’ll support that’

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The renewed effort to get a transit millage on the ballot next year comes as two new leaders have emerged to potentially play a role in brokering such a deal: New Oakland County Executive Dave Coulter from transit-friendly Ferndale and Lt. Gov. Garlin Gilchrist II, a bus-riding Detroiter. But even getting Coulter’s support for a new regional transit plan may not be the slam dunk transit advocates thought it would be following the death of longtime Oakland County Executive L. Brooks Patterson. While Coulter is more supportive of making the RTA the regional coordinating agency for the transportation agencies that serve Detroit, its suburbs and Washtenaw County, he’s not inclined to rubber-stamp past plans that have faced opposition in some Oakland County enclaves that opted out of the Suburban Mobility Authority for Regional Transportation in the 1990s. “I’m not the mayor of Ferndale anymore, so my constituency is larger, and I’m sensitive to that,” said Coulter, who hasn’t ruled out seeking the Democratic nomination for county executive next year. “So it has to be a plan that makes sense for Oakland County and all of the residents here.” Gilchrist, who resides in Detroit’s Corktown neighborhood, counts himself among the few elected officials in Michigan who has been a daily bus rider. While working for the city of Detroit, Gilchrist and his family lived car-free for three years in Detroit until his wife got a job with Detroit Public Schools Community District that required her to work in multiple city schools. Before joining Democratic Gov. Gretchen Whitmer’s ticket last year, Gilchrist commuted to a job at the University of Michigan three days a week using Greyhound buses on east-west routes because there’s no daily bus service between Michigan’s largest city and Ann Arbor. (UM has since added its own daily route.) “That was a disaster,” Gilchrist told Crain’s. “The bus was always late — both directions — because it’s not a commuter setup.” Gilchrist would like to use his own experiences to help craft a new regional transit plan

A FAST bus stops along Gratiot near 12 Mile Road in Roseville last week. LARRY PEPLIN FOR CRAIN’S

that reflects the daily needs of residents trying to get to work, school or a doctor’s appointment. “One of there reasons we have policymakers

“If I had a 1.5-mill ask for Macomb county residents, it would be for public safety for the jail and for the roads.” — Macomb County Executive Mark Hackel

making policy that doesn’t work for people is they’re governing over experiences they’ve never had,” Gilchrist said. “If you’ve never been reliant on public transit, you don’t understand the difference between waiting eight minutes for a bus and waiting 30 minutes,” the lieutenant governor added. “You don’t understand what it means to have a baby stroller that you have to collapse to get on the bus. You don’t understand how hard it is.”

Envy vs. practicality Last year, Evans’ bid to get a $5.4 billion, 20year transit millage on the ballot that was heavily focused on expanding service in all four counties fizzled at the hands of Hackel and Patterson’s appointees on the RTA board. Each county has two appointed members on the board, while Detroit has one representative. The 2012 law creating the RTA stipulates that at least one voting member from Wayne, Oakland, Macomb and Detroit has to vote in favor of placing a tax proposal on the ballot. Hillegonds is a nonvoting chairman; Whitmer reappointed him to the post in March for a term expiring on March 31, 2022. While Coulter will have the opportunity to appoint one of Oakland County’s members next spring, Macomb County’s members could still block a millage from going to the ballot in November 2020. The northern suburban opposition to Evans’ 2018 four-county 1.5-mill property tax hike was driven, in part, by the idea often voiced by Patterson that Oakland County residents with high property values would be subsidizing bus service for Wayne County and Detroit, where low-

In Macomb County, Hackel’s opposition centered on Macomb County’s voters clamoring for fixes to the county’s crumbling roads before adding more buses to its busy thoroughfares. Macomb County’s Board of Commissioners also are currently mulling whether to ask voters for a 0.98-mill tax for the next 21 years to pay for a new $375 million, 1,518-bed county jail and sheriff’s office. Past RTA proposals have entailed a 1.5-mill property tax hike on top of the 1-mill levy all Macomb County property taxpayers currently pay to support the SMART bus system. “If I had a 1.5-mill ask for Macomb county residents, it would be for public safety for the jail and for the roads,” Hackel said. Hackel portrays Macomb County as superior in this regional debate because the county was never carved up into opt-out communities like Oakland and Wayne counties. Oakland’s SMART opt-out communities include Novi, Waterford, Lake Angelus, Rochester, Keego Harbor, Sylvan Lake, Orchard Lake and Bloomfield Hills; Wayne County’s include Livonia, Canton Township and Detroit, which runs its own bus system that connects to SMART buses shuttling Detroiters to jobs in the suburbs and suburban residents to jobs in the city. The Macomb County executive voiced support for Wayne and Oakland counties pursuing separate countywide millages with Washtenaw County to “fix their problem” with opt-out communities not contributing to the existing regional transit system. “I think it’s a great idea,” Hackel said. “We’ll support that.” Coulter said any new transit plan should incorporate the changing needs of communities like Novi, which has opted out of the SMART bus system for the past quarter-century but has since become a magnet for employers. “Maybe Rose Township will never want to be in it,” Coulter said of the northern Oakland County community of 6,400 residents. “But I think the major employer hubs should be in it. To what degree that will happen, I don’t know. But philosophically, it would be helpful if everybody is in.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

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FORD MOTOR CO.

Ford’s 2.2 million square feet of new research and engineering space is expected to include things like shared pathways, restaurants and coffee shops.

Ford outlines major overhaul of Dearborn campus by 2025 By Kirk Pinho kpinho@crain.com

Ford Motor Co. has outlined a large overhaul of its Dearborn campus to create a new product and development center by 2025 as it continues work on Michigan Central Station in Detroit’s Corktown neighborhood. The result is expected to be 2.2 million square feet of new space that replaces buildings on the 700-acre Research and Engineering Center campus, according to a plan released Tuesday. The automaker’s current Product Development Center on the engineering campus is expected to be torn down, starting in 2023. The plans modify a master plan, unveiled in 2016, to account for its subsequent purchase and renovation of Michigan Central Station for a mobility hub. “It’s a dramatic moment in the history of Ford Motor Co. because the last time there was a moment like this was 1953” when the Product Development Center was dedicated, President and CEO Jim Hackett said on a conference call with reporters. The automaker said in a news release that it “will help Ford speed product and technology innovation and attract world-class talent.” Construction is expected to be completed in two phases, with the first being done by the end of 2022 and housing about 2,000 Ford employees. The second phase is to be done by 2025 and the new buildings would ultimately house about 6,000 workers, primarily designers and other vehicle development employees. The design is expected to include features such as shared pathways, coffee shops and other retail space, although the precise scale of those aspects has not yet been determined, said Christina Twelftree, a Ford spokeswoman. Hackett and other Ford executives, including Ford Land Development Co. Chairman and CEO David Dubensky, declined to reveal the development cost for the new space. However, new construction generally costs about $250 to $300 per square foot, so at 2.2 million square feet, the new building could cost $550 million to $660 million. That’s in line with earlier estimates that Ford planned to spend more than $1 billion between Corktown and

FORD MOTOR CO.

Ford’s new research and engineering space, to be complete by 2025, is the result of years of planning and design work that started in 2016.

Dearborn on new space for autonomous and electric vehicle development in Detroit and revamping its campus in the suburbs. Five buildings on the Dearborn campus have been demolished so far. Ford employees in the new space will be surrounded by natural elements, Dubensky said. “In virtually every workspace is a connection to nature. Three-quarters of the campus will be dedicated to nature. We are taking down the buildings that exist along Rotunda and replacing them with walking paths, trees, etc.” Ford also said it will have more flexible workspace and include transportation such as e-bikes, scooters and shuttles and, eventually, autonomous vehicles and other forms of mobility. There will be what Ford calls a “shared transportation loop” that “limits personal vehicle access to the perimeter of the site.” The project has been in the works for years. The new building is the result of a multi-year process that has involved a variety of other consultants, including Snohetta, Gensler and SmithGroupJJR architecture and planning firms. Twelftree said Ford is in the bidding process for other contractors. “We’ve not lost time from 2016 in that master plan,” Dubensky told reporters on the conference call last week. “In that master plan, we put in roads and infrastructure and sewers and parking lots.” The Research and Engineering Center Campus is across the street

from Edsel Ford High School in the triangular area bounded by Rotunda Drive, Village Road and Oakwood Boulevard, and houses about 11,000 workers; the company’s headquarters is north of the site at Michigan Avenue and Southfield Road. The site was developed as a five-building campus in the early 1950s. More buildings were added over the years to meet increasing demand, ultimately growing to 37. The Corktown campus is slated to cost about $740 million between the redevelopment of Michigan Central Station, which is expected by 2022, and construction of new space. Between that and the $550 million to $660 million the new building may cost, the campuses would total at least $1.29 billion, potentially $1.4 billion. The company paid the Moroun family $90 million for the iconic Detroit building at 2001 15th St. last year. When its redevelopment is complete, it is slated to be the focal point of the 1.2 million-square-foot campus that Ford revealed in June 2018 after months of speculation once it was publicly revealed that the automaker was in negotiations to buy and redevelop the depot, work on which began in December. The company received $239 million in local, state and federal incentives for that campus, which is expected to bring 5,000 autonomous and electric vehicle technology workers to the area. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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Beaumont sells equipment business in move away from post-hospitalization services By Jay Greene jgreene@crain.com

Beaumont Health has sold its home medical equipment business company, its third post-acute care business divestiture this year, to Medical Service Co. in Cleveland for an unspecified price. Most of Beaumont’s 100 home medical equipment employees were hired by Medical Service Co. after the transaction was completed in July, officials for Beaumont and Medical Service said. Some employees remained with Beaumont in other jobs. “I don’t know why Beaumont sold. ... Beaumont used a broker to solicit interest in the business. This is a process and after conversations and presentations they chose to work with us and negotiate a fair contract,” said Joel Marx, chairman of Medical Service Co. Beaumont officials said the sale of the assets of Beaumont Home Medical Equipment includes four freestanding offices in Madison Heights, Berkley, Macomb Township and Riverview and two offices at Beaumont hospitals in Royal Oak and Troy. In a statement about the home medical equipment company sale, Beaumont said Medical Service Co. has “extensive experience and is committed to delivering high-quality care. (The company) will be able to provide quality and timely durable medical equipment services for more patients and their families.” The sale represents the third divestiture of a post-acute-care company this year by the Southfield-based health system. In January, Beaumont sold 90 percent of its home health and hospice business to Alternate Solutions and Health Network, a Kettering, Ohiobased company, for an unspecified price. Beaumont formed a joint venture with Alternate that allows the company to use the Beaumont name. In September, Beaumont sold the 50 percent financial interest in four nursing homes and an assisted-living facility it had in a joint venture with Premier Health Care Management in Bloomfield Hills to Optalis Healthcare of Novi, according to Michigan certificate-of-need documents. Financial terms of the deals were unavailable. For more than 25 years, Premier’s joint venture arrangement with Beaumont Nursing Home Services Inc. included using the “Beaumont-affiliated” name in marketing and advertising. Beaumont owned at least 50 percent of the assets of the nursing homes and assisted-living facilities, but leased them to Premier. The four nursing homes — Evergreen, Shelby, Shorepoint and Woodward Hills — and the Shorepoint Village assisted-living facility were managed by Premier. Raj Patel, CEO of Optalis, confirmed that Optalis now owns the five health care buildings. He said the company plans to hire more employees and make building and technology improvements. References to Beaumont have been removed from the homes’ websites. Crain’s requested interviews with Beaumont several times on their

The deal marks the third divesiture of a business line associated with post-hospital care for the Southfield-based health system.

Need to know

JJMedical Service Co. of Cleveland

acquired the assets of Beaumont’s six durable medical home equipment office locations JJBeaumont phasing out ownership of post-acute care services JJDivested home health, hospice, home medical equipment, nursing home joint venture business lines

“As we focus on these outpatient growth areas, we are determining that some specific business units are done better by others who have more expertise, size and scale than Beaumont.” Beaumont statement

strategy for post-acute care but only received three statements. “Health care is always evolving and changing,” the second Beaumont statement said. “The post-acute care businesses we have sold were a small fraction of our overall system. Beaumont continues to grow and expand. Patients want more access to outpatient care.” Two sources who asked for anonymity told Crain’s that Beaumont is withdrawing from direct ownership of some post-acute care business lines because they are under-performing and the system believes it can better use financial resources and staff in other areas. Beaumont’s statement to Crain’s said the health system is spending millions of dollars on other outpatient areas, including creating a network of 30 urgent-care centers in a partnership with Atlanta-based WellPoint Urgent Care. “As we focus on these outpatient growth areas, we are determining that some specific business units are done better by others who have more expertise, size and scale than Beaumont,” the statement said. Marx said Medical Service sees potential in Southeast Michigan beyond continuing to serve Beaumont’s eight hospitals.

“Detroit is an outstanding health care market,” Marx said. “You have multiple systems in the market. I think we can expand significantly beyond the Beaumont footprint.” In October, Medical Service plans to open a seventh location in Southeast Michigan, in Riverview, Marx said. An additional 10 to 30 employees will be hired over the next year, he said. They include respiratory therapists, customer service representatives, billing and documentation specialists. Over the past several years, reimbursements for home health, hospice and equipment have been flat or declining and costs have been rising. Specialized expertise in post-acute care business lines also is necessary as regulations become more complex and competition heats up. Barry Cargill, president of Michigan Home Care and Hospice Association, said payment cuts have forced HME providers to become more efficient and seek larger size through consolidation for economies of scale. “Hospitals are re-examining postacute care services. In some cases they have divested interests. In others, they have established collaborations. Beaumont chose to sell,” Cargill said. Cargill said home health, hospice and home medical equipment have experienced significant reimbursement cuts since 2013, when Medicare instituted competitive bidding for home medical equipment services. “When that happened, payers followed suit, and we have seen a lot of doors shut (companies gone out of business, sold assets or merged with larger players),” said Cargill, who estimated that the number of durable medical equipment providers in Michigan has fallen by more than a third the past six years. Marx said many hospitals are selling their home medical equipment business because they don’t have the expertise to run the operations. He said the company has grown most recently by acquiring hospitals’ home medical equipment businesses. “Hospitals have found when they work with companies that only do this, it is done more effectively and efficiently,” he said. Founded in 1950 by Merle and Jean Marx as a pharmacy and durable home medical equipment sup-

plier, Medical Service Co. now operates in six states and specializes in chronic-respiratory disease management. Besides Ohio and Michigan, the company also operates in New York, Pennsylvania, Indiana and Kentucky. The company provides oxygen therapy, sleep therapy, ventilation therapy, pharmacy, hospice care and a range of home medical equipment. Marx said Medical Service Co. has acquired other hospitals’ equipment business lines or partnered with them because of declining reimbursements and regulatory concerns. “Competitive bidding (under Medicare) makes it impossible to be in this part of the industry without some size,” he said. Cargill predicted tremendous growth potential for the home health, hospice and HME market as baby boomers age and care moves more to outpatient, post-acute care settings. More than 10,000 baby boomers turn 65 every day.

“The market growth is tremendous. One day we hope to resolve the reimbursement issues,” he said. But Cargill also is concerned that hospitals that divest from HME business also could lose a key tool in their arsenal to reduce inpatient readmissions. “Post-acute services are essential for reducing hospital readmissions,” Cargill said. “If you don’t have ownership, you need other collaborations in place.” Medical Service has experience in rapidly providing equipment to patients before they leave the hospital and having it ready when they arrive home, he said. “Besides having our employees located in (Beaumont) facilities, the whole idea is to improve the quality and speed of discharge,” he said. “(We don’t want patients to) sit on the edge of a bed for six hours waiting for a walker or oxygen. We get it done in an hour.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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The Greektown Neighborhood Partnership spearheaded a report supported by various stakeholders in the largely commercial district that advocated for more residential and office space and more walkability. A rendering of a remade Monroe Street is shown. SKIDMORE OWINGS & MERRILL AND OFFICE OF JAMES BURNETT

Plan for Greektown steers district toward reinvention By Annalise Frank afrank@crain.com

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Greektown, the entertainment-heavy downtown Detroit district with no residents and plenty of parking or vacant lots, is steering toward a reinvention. The Greektown Neighborhood Partnership last week revealed its 256-page, privately funded answer to the strategic neighborhood framework plans the city of Detroit is concocting for neighborhoods outside downtown. The Greektown stakeholder organization (rebranding from Greektown Preservation Society) wants to take hold of the opportunity it sees as greater downtown Detroit’s economic conditions improve. The vision it lays out would see Greektown become a prominent player that attracts new vitality while holding onto its past, possibly reversing what the report terms a “deterioration of the neighborhood identity” and declining business. The partnership consulted with the city of Detroit, Downtown Detroit Partnership and private stakeholders while building the vision for public space, culture, mobility, mixed-use development, safety and walkability. Crain’s reported last October that such a plan was in development. Crain’s requested information on costs of the study and its implementation. The ambitious plan lays out strategies that would most likely take years to implement. It advocates for adding more office and residential space to drive more people into the district during the day and weeknights; add-

Need to know

 Greektown Neighborhood Partnership unveils framework vision  District wants more daytime liveliness, walkability, safety, and office and residential development  Neighborhood has lost some of its Greek flavor and vitality, report says

ing public open spaces; and making the streets more attractive with more green space, installations and art. It also highlights “perceived and real safety concerns within Greektown,” and the need to address them. “Most people think of Greektown as an only-commercial district,” said John Warner, the partnership’s director of neighborhood development. “We also want Greektown to be a place where people can live and work. There will be (real estate) developments on the horizon in the not-too-distant future that will introduce those elements to Greektown. Individual developers will be working on the actual parcels.” Neither the report nor Warner gave details on specific developments. The first likely visible outcome of the partnership’s efforts will be a public-private build-out of the Randolph Street plaza near Buffalo Wild Wings at the Gratiot Avenue intersection — a “gateway” to Greektown, Warner said. It is sparsely used, but plans have been in the works since 2017 to activate it. He deferred comment on the costs to the city of Detroit. Warner said groundbreaking is expected before the weather turns

this year, or around spring. Crain’s requested comment from a city representative. Contractors who created the Greektown plan are Skidmore, Owings & Merrill LLP, HR&A, Office of James Burnett, Sam Schwartz Engineering, Mcintosh Poris Associates and Kraemer Design Group. Its funders include the Quicken Loans Community Fund; Detroit-based Bedrock LLC; Jack Entertainment; the Papas family, owners of the Atheneum hotel and Pegasus Taverna; the Teftsis family of Astoria Pastry Shop and Red Smoke Barbecue; the Gatzaros family, owners of Fishbones; the Dionisopoulos family of Golden Fleece and the Exodos club; Old Shillelagh; Firebird Tavern, and Grosse Pointe Woods-based parking lot operator Park Rite. Asked about accountability for pushing the project forward, Warner pointed to leadership from the Greektown partnership, which recently hired a new executive director, Melanie Markowicz, and plans to pursue philanthropic, private and public funding. He also noted mounting “pressure” from surrounding projects including Bedrock’s Monroe Blocks and redevelopment of the former jail site on Gratiot Avenue.

Making of Greektown The entertainment and commercial district is clustered around a three- to four-block stretch of Monroe Street at the eastern edge of Detroit’s central business district. A stroll reveals a smattering of Greek restau-

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&KLHI )LQDQFLDO 2IƓFHU The Children’s Foundation

LARRY BURNS

3UHVLGHQW DQG &(2 The Children’s Foundation

For more information and to listen to past shows visit:

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SKIDMORE OWINGS & MERRILL AND OFFICE OF JAMES BURNETT

A Randolph Street plaza and infill development are shown at a “gateway” to Detroit’s Greektown entertainment district near Monroe and Randolph streets as part of the Greektown Neighborhood Framework Vision.

rants, chain eateries, Greektown Casino-Hotel and a single block with three rooftop clubs. About half of the neighborhood’s approximately 50 acres are filled with surface parking or vacant lots, according to the report, and it said the district doesn’t have any full-time residents. Several Greek families still own prominent Greektown businesses and properties, but the district’s number of Greek offerings has fallen. “... The identity of the neighborhood and changes in the makeup and preferences of patrons have ushered in a new generation of venues, including a casino, national fast-casual brands, a liquor store, nightclubs and traditional American pubs,” the report said. And it is increasingly fending off competition from Woodward Avenue restaurants and downtown food trucks. Greektown was originally settled by Germans in the 1830s, but they were replaced by Greeks starting in the early 1900s, according to the Detroit Historical Society and Greektown Neighborhood Partnership. Though Greek immigrants began moving out in the 1920s, according to DHS, their Greek restaurants and shops stayed. Com-

mercialization evolved the Monroe stretch starting in the 1960s, with some buildings demolished for more parking and municipal structures. Greek leaders jump-started a yearly Greek Festival in 1965, aiming to preserve community. But over the decades, the neighborhood morphed from a cultural center to one structured around entertainment and nightlife. Yanni Dionisopoulos of the Golden Fleece restaurant on Monroe told Crain’s last week that his family planned to open a new Greek bakery, grocery and cafe next door in an effort to keep the heritage alive because “a lot of people just aren’t doing anything Greek anymore” in the community, he said. “Greektown has the opportunity to emphasize connected, contextual and inclusive development,” Markowicz said in an email. “We see the creation and forthcoming implementation of this plan, along with the expanded focus of our organization as a catalyst of thoughtful transformation in the neighborhood — one which has been defined by the community itself.” Annalise Frank: (313) 446-0416 Twitter: @annalise_frank

LARRY,

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Congratulate You ON YOUR RECOGNITION AT THE ARAB AMERICAN & CHALDEAN COUNCIL’S 40TH ANNUAL HUMANITARIAN AWARDS.

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Lawrence J. Burns President & CEO The Children’s Foundation

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Advertising Section

PEOPLE ON THE MOVE

To place your listing, visit www.crainsdetroit.com/people-onthe-move or for more information, please call Debora Stein at (917) 226-5470 or email dstein@crain.com. ADVERTISING / PR / MARKETING

FINANCE

Airfoil Group

Key Equipment Finance

Airfoil has promoted Angela Leon to vice president, strategy & media relations of its communications team from her previous role of director. Leon is a communications specialist with more than 15 years’ experience. Her expertise lies in national consumer and business media Leon strategy, product launches, crisis communications and thought leadership for technology, automotive, healthcare, and consumer brands. Additionally, Airfoil is pleased to welcome Whitney McGoram to the role of vice president, strategy & client service for its communications team. In her role, she will lead the strategic program planning and McGoram management to meet the business needs of Airfoil’s clients. Previously, Whitney served as an associate vice president at Finn Partners.

Kevin Nash has been named leasing manager for the Michigan and Northwest Ohio markets. In this role, Nash will identify, develop and close end-userbased equipment finance and leasing transactions. Nash joins Key Equipment Finance after spending the last three years managing the Southeast Michigan, Mid-Michigan, Toledo and Northern Indiana territories for PNC Equipment Finance, LLC.

CONSTRUCTION

Templeton Building Company Ashley Gibaud has been named Vice President of Templeton Building Company. Ashley has been with the company for 15 years. Her responsibilities include client relations, project organization, and employee management. She holds a degree in small business management. Templeton Building Company is a Birmingham based construction company specializing in remodeling, additions, restoration, and commercial construction.

NONPROFITS

NPower The national tech training nonprofit, NPower, has announced Camille Walker Banks will join as the Executive Director leading their expansion into Detroit. Banks is a Detroit-native and thought NEW HIRE? leader in economic and PROMOTION? community development, capital BOARD APPOINTMENT? entrepreneurship, social impact investing, and business growth. She brings more than 20 years of experience helping small businesses across Michigan increase their revenues and create new job opportunities that exceeded the national average.

Crain’s People on the Move showcases industry achievers and their companies to the Detroit business community. Contact: Debora Stein at dstein@crain.com

C O N TA C T

Preserve your career change for years to come. PRODUCTS

MERGERS & ACQUISITIONS J AppSmart, San Francisco, a business software company, acquired Telegration Inc., Clawson, a telecommunications services supplier. Websites: appsmart.com, telegration. com J Huron Capital Partners LLC, Detroit, a private equity firm, has invested in Northwest Pallet Holdings LLC, Schaumburg, Ill., a pallet company. Huron is combining Northwest Pallet and Prime Woodcraft Inc., Brunswick, Ohio, a pallet management service provider. The combined company will be headquartered in Schaumburg. Financial terms of the transaction were not disclosed. Websites: huroncapital.com, northwestpallet.com, primewoodcraft.com

CONTRACTS J Rochester Hills-based Oakland University’s Pawley Lean Institute and its Industrial and Systems Engineering Department are collaborating with the Lean Enterprise Institute Inc., Boston, a nonprofit research, education and publishing institute, to create new and update existing educational opportunities in Lean thinking and practice. Websites: oakland.edu/lean, lean.org J Automation Alley, Troy, a non-

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

profit manufacturing and technology business association, and Automate Canada, Windsor, Ontario, an association representing companies involved in the industrial automation industry, signed a memorandum of understanding designating Automate Canada as a strategic partner of Automation Alley for economic development initiatives and as a marketing and promotional partner. Websites: automationalley.com, automatecanada.ca

EXPANSIONS J Smoothie King Franchises Inc., Dallas, Texas, a smoothie brand, opened a new location at 3169 Fairlane Drive, Allen Park. The new store is owned and operated by Christopher Klebba of Northern Diamond Management LLC, Brighton, an equity management firm. Website: smoothieking.com

NEW SERVICES J Conway MacKenzie Inc, Birmingham, a management consulting and financial advisory firm, launched a consumer products practice to help clients capitalize on growth opportunities and navigate challenges of ecommerce, demographics changes and regulatory uncertainties. Website: ConwayMacKenzie.com

CALENDAR TUESDAY, SEPT. 24 Automotive Dealers, Construction Industry & Controllership Conference. 8:30 a.m.-5 p.m. Michigan Association of CPAS. Crain’s Detroit Business senior editor Chad Livengood, Royal Oak Mayor Michael Fournier and the Michigan Association of CPAs will discuss what’s driving the state’s economy forward. Information will include what factors, on a state and national level, continue to help Michigan industry thrive as sectors come together to see the big financial picture. Other topics include: Michigan’s automotive industry condition and updates on the latest financial and legal concerns; the secrets of commercial lending for construction projects including the range of interest rates, fees and down payments that borrowers should expect to see; the organizational benefits of adopting a servant leadership philosophy, insights and attributes of impactful servant leaders. Laurel Manor, Livonia. $229 members; $379 nonmembers. Contact: Jessica Bills, email: jbills@micpa.org; phone: (248) 267-3749.

THURSDAY, SEPT. 26

NEW GIG? • Plaques • Crystal keepsakes • Frames • Other Promotional Items

DEALS & DETAILS

Top of Troy: Women of Influence. 8-9:30 a.m. Troy Chamber of Commerce. Four female business leaders discuss the challenges they faced on their paths to success, the key tools they have used to remain focused along the way, the hard decisions they are faced with on a daily basis and how being a woman has affected the choices they made. Panel includes: Lara Dixon, principal, Troy Athens High School; Lenora Hardy-Foster, president and CEO, Judson Center; Angelique Strong Marks, director,

general counsel, corporate secretary and compliance officer, Mahle Industries Inc. and Cheryl Yuran, group vice president and chief human resources officer, Plex Systems. Moceri Learning Center, Beaumont Hospital Troy. $15 members, $25 nonmembers. Website: troychamber.com/events

UPCOMING EVENTS Great Lakes Digital Transformation Summit. 8 a.m.-5 p.m. Oct. 10. WIT. The speakers will include representatives from Greenpath Financial, Secure-24 and Stant and keynote speaker Joe Chung of Amazon Web Services. Also a panel of tri-county CIOs comprised of Phil Bertolini from Oakland County, Jako Van Blerk from Macomb County and Carlos Perez from Wayne County will discuss the topic of “Digital Innovation: Connecting Citizens to the County.” Troy Marriott. $129. Contact: Erin Adair-Guy, email: eguy@witinc.com; phone: (800) 257-1490. 2019 Entrepreneur & Small Business Conference: Power Up Your Business. 8:30 a.m.-3 p.m. Oct. 11. The National Entrepreneurs Association. The program will focus on ways to leverage relationships, finances and marketing to accelerate growth through tech. The event will include: keynote speakers, breakout sessions, Google training, entrepreneur awards exhibitors, breakfast and lunch. Speakers include: Tommey Walker, owner and creator of Detroit Vs. Everybody and Paul Glantz, founder and chairman of Emagine Entertainment. Mike Ilitch School of Business. $125. Contact: ZaLonya Allen, email: supportstaff@nationalentrepreneurs.org; phone: (248) 491-3146.

SPOTLIGHT

Carlson

Hobbs

New Oakland County executives hired

A month after being sworn into office, Oakland County Executive Dave Coulter has tapped two more deputy county executives to round out his leadership roster. Sean Carlson, 50, executive director of the Michigan Defense Center, an operation of the Michigan Economic Development Corp., will take the lead on economic development and fiscal challenges, according to a news release. His first day is Monday. The retired Air Force officer is tasked with “maintaining the highest integrity in all county IT and procurement practices,” the release said. To zero in on public policy development, Coulter has chosen lobbyist and former state representative Rudy Hobbs, 44, who will be Oakland County’s first black deputy county executive. His role is effective Oct. 7. Hobbs, who will advocate for the county at local, state and federal levels, joins the team from Lansing-based lobbying firm Michigan Legislative Consultants, where he has worked since 2017, the release said.

Zomedica fills president role

Zomedica Pharmaceuticals Corp., a veterinary diagnostic and pharmaceutical company based in Ann Arbor, has promoted from within for its new president. Stephanie Morley expands a previous role as chief operations officer and vice president of product development, effective immediately, according to a news release. She will keep the COO title and continue to oversee product development. Gerald Solensky Jr., who previously held president and CEO titles, stays on as CEO and chairman, spokeswoman Meredith Newman said in an email.

Jewish Community Relations Council names new leader

Bloomfield Hills-based Jewish Community Relations Council named Rabbi Asher Lopatin as its new executive director. Lopatin started last Tuesday, according to a news release. He replaces David Kurzmann, who left the nonprofit Lopatin in July for a position as senior director of community and donor relations for the Jewish Federation of Metropolitan Detroit, based in the same building off Telegraph Road. Lopatin, 55, comes from a position as founding director of the nonprofit Detroit Center for Civil Discourse, which promotes diverse dialogue, the release said.

C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 2 3 , 2 0 1 9

Advertising Section

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

REAL ESTATE

JOB FRONT POSITIONS AVAILABLE

LUXURY PROPERTY

Harman Connected Services: Principal Engineer - Software Development

A rendering of Ann Arbor Research Park.

FLEX SPACE FROM PAGE 3

“If you have somebody that needs a 50,000 or 100,000-square-foot life sciences campus or tech campus in Ann Arbor, that product, that assembled land doesn’t exist, per se, and it’s a bit of a challenge,” Vig said. “We’re trying to kind of address that challenge. Because the alternative, if you can’t accommodate that growth, is they just consolidate into a campus somewhere else.” Neal Warling, an Ann Arbor real estate expert who is managing director for the JLL brokerage firm’s local office there, said the life sciences/R&D market challenge is finding companies, often startups, with good credit that are able to afford costly lease rates that come with highly specialized and technical space.

“This is another sort of node, to be able to have additional product for companies that are expanding instead of having to look over our market.” Phil Santer

“That very seldom meshes,” he said. “In my opinion, there is room for new build, absolutely, but I don’t know how deep the market is at that point. You have the TI (tenant improvement) part of the equation and then the risk of a startup that might not be there in a year.” But Vig and McCausland say the demand is there,. “We just had a sublease come up,” McCausland said. “The tenant hasn’t even moved, and we have two prospects for that subleased space. That, to me, is wind at your back.” Phil Santer, senior vice president and chief of staff for Ann Arbor Spark, said developers have been successful filling speculative buildings recently. There was Promanus, which built Park Place Five at 2373 Oak Valley Drive for $11.25 million, and others. He said filling in the Ann Arbor Research Park area is key to the city for business attraction. “This is another sort of node, to be able to have additional product for companies that are expanding instead of having to look over our market,” Santer said.

HOBBS + BLACK

Bart Wise, agent/broker for Swisher Commercial, said it’s likely that McCausland and Vig will be able to fill the new space. “That said, I would often remind people that Ann Arbor is a small market, so it will often take time to find the right tenants to match a vacant or planned space,” Wise said. “A building or suite that is designed to meet the demand of this market and is priced right will eventually be successful.” Data from the real estate brokerage Swisher Commercial in Ann Arbor says that at the end of 2018, the city’s southern submarket where the project would be located has 49 flex buildings totaling 2.34 million square feet, and 5.3 percent of that space is vacant. That’s up 1.1 percentage points from 4.2 percent at the end of 2017. The vacancy rate was 5.6 percent at the end of 2016 and 13.1 percent at the end of 2015. If all goes well with planning approvals, construction on the first phase could begin by the early summer next year. Southfield-based Signature Associates Inc. is marketing the property for lease. Vig’s construction company is the contractor and Hobbs + Black is the architecture firm. Ann Arbor Spark, the economic development nonprofit, was awarded a $100,000 site readiness grant from the Michigan Economic Development Corp. last month for the Ann Arbor Research Park project, primarily for demolition of the existing building on the site. Paul Krutko, president and CEO of Ann Arbor Spark, said in a statement at the time the grant was announced that “the proposed tech park along the south State Street corridor fills a significant need and will help realize the long unmet potential of this area in the city of Ann Arbor: Companies that want to expand currently struggle to find space in our extremely tight market for office space.” Vig said Spark and the University of Michigan view the area as a growth opportunity. “It has a lot of political importance, because in their mind, I-94 and State Street, this would be the gateway to the university,” he said. “And it’s kind of a broken park right now.” Opportunity Zone funding is also part of the capital stack, although McCausland and Vig declined to say how much and from whom it is coming. Brownfield financing is also anticipated. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

01 Position: Work Location: Novi, MI, Job Code PESD-HCS-M-01: Comp SW Lifecycle mgmt (Req, Dev, Integra & Test). analyze & u’stand module spec Cust req (CRS) & change request & for defining/docum the result features in TRSSW. Link the module specific CRS entries to TRS-SW to ensure 100% CRS coverage. Implement & integr the planned features according to Embedded sys arch & dsgn. Tests SW dsgn & code at the unit & sys level to ensure req’s are met & highest SW qlty is achieved. Partic in inter & cust driven dsgn rev throughout program sup by local SMEs. Work with off-shore dev & valida team to sup SW dev activity. Comm & I’face directly to OEM cust’s supp by regional SME. I’fies prod req or perfor issue. Req’s: Bachelor’s deg (or foreign Equival) in ComSci, Eng, Electrical/Electronic Eng /equal/related & 7+ yrs relevant work exp. Alt: Master’s deg (or foreign Equivalent) in Bachelor’s deg (or foreign Equival) in ComSci, Eng, Electrical/Electronic Eng /equal/related & 5+ yrs of relevant work exp. Other req: 7+ yrs’ exp in C/C++ or other structured lang (7+ yrs in case of Bach’s deg & 5+ yrs in case of Masters deg) Embed operating sys (schedulers, memory mgmt, driver models, RTOS concep) oscilloscope for troubleshooting, Processors: Mulit-core Sys-on-Chip processors, ARM CortexA15, TI Jacinto 6 automotive SoC. SW dev tools – TI Code Composer Studio, Eclipse IDE. Tech: Audio processing, audio amplifiers, Ethernet, microcontrollers, audio codecs, microprocessors, vehicle networking. Atlassian JIRA, Confluence, Bitbucket. Apply: Send resumes - Harman Connected Services Attn: Mahesh G M/Job Code PESD-HCS-M-01, to 2002 156th Avenue NE #200, Bellevue, WA 98007. POSITIONS AVAILABLE

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PLATFORM FROM PAGE 3

The digital platform replaces AutoLoads, a clunkier load board launched around eight years ago with limited accessibility and a lack of user-friendliness. Haully uses the same software, OVISS, which was developed by the company 15 years ago. Anderson said the company has spent about $2 million on the new platform. With 2,000 employees, United Road operates 1,200 company trucks and 90 terminals across the U.S. and Canada for all major automakers, but 65 percent of its revenue comes from third-party drivers and independent contractors. Eventually, 80 percent of business will come from those streams, Anderson said. The reasoning is simple: Through Haully, United Road can deliver on its contracts with OEMs more quickly and efficiently, allowing it to take on more business. “Our goal around it is to move more vehicles with other peoples’ assets,” Anderson said. Third-party drivers are happy because they can haul cars, often for supplementary income, on their own schedule, Anderson said. He declined to say what the profit margins are for its subcontracting business. Rigs operating full time can earn $130,000-$600,000 per year taking work through the platform. Another important feature on the new mobile platform is linking drivers to nearby backhauls so they don’t have to return home without a haul. “The only way you make money in this business is when you have cars on your back,” Anderson said. Of the 17.3 million new cars sold last year in the U.S., about 3.3 million were moved by United Road. It is the largest new-car hauler, with 20 percent of market share. In the fragmented used-car segment, which saw around 40 million units sold each year, the company moves just more than 1 million per year. Anderson hopes Haully will help increase revenue in the used-car space, and he is also looking closely at new-car sales trends. North American vehicle sales are expected to drop to 16.8 million this year and decline to 16.5 million in 2020, according to Cox Automotive. That means more competition for shrinking inventory among large haulers, such as Kansas City-based Jack Cooper Transport Co., Illinois-based Cassens Transport Co. and Texas-based U.S. AutoLogistics. “We’re agnostic when it comes to new and used — we just want to grow,” Anderson said. United Road was founded in 1997 and bought in 2017 by Washington, D.C.-based private equity giant The Carlyle Group. It acquired Colorado-based Fleet Car Carriers last year. The company has grown revenue an average of 11 percent to 12 percent each year for the past five years and expects the trend to continue for the next three to five years, despite a forecast decline in car sales, Anderson said. Its network of third-party carriers has grown from 1,500 five years ago to around 4,500. Haully is open to drivers with proper insurance and adequate safety records. Onboarding with United Road takes about an hour, Anderson said.

HAULLY

Haully, a new platform developed by United Road, pairs truck drivers with freight based on drivers’ preferences.

Anderson said the company plans to consolidate 250-300 administrative employees from Romulus and its other location in Livonia to the Burroughs building in Plymouth by November. With its third-party focus, the company does not expect employee count to grow in stride with revenue. The goal is to continue diversifying business and to let Haully do some of the heavy lifting. “We want to be a leader in tech innovation,” Anderson said. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

Eastern Market Brewing to buy Axle Brewing, take over Ferndale taproom By Annalise Frank afrank@crain.com

Fast-growing Eastern Market Brewing Co. will buy Axle Brewing Co., the brewery and taproom in Ferndale that closed in June after two years. The elephant-themed microbrewery plans to open a second operation outside Detroit, even as it plans to expand its home operations in the Eastern Market food district just northeast of downtown, according to a news release. In the agreed-upon deal, Eastern Market would take over and rebrand Axle’s 10,000-square-foot Ferndale base that housed a restaurant, taproom, beer garden and production equipment at 567 Livernois St. in southwest Ferndale. It expects to open “as soon as all licensing is approved,” the release said. The two sides did not disclose terms. The move would triple the Detroit

brewer’s production, grow its canned selection and allow it to experiment with barrel-aged beers, it said in the release. It would also move packaging operations there. The incoming taproom and eatery — dubbed the Ferndale Project, for now — would focus on the “hop-forward IPAs and fruit-forward sours that have driven much of our success to date,” the brewer said in a Facebook post. Also, in its second location, Eastern Market Brewing gets a full kitchen. In Eastern Market, it serves food out of a food truck. The president of Axle, Dan Riley, and co-founder Carolyn Bellinson will retain ownership of the building. Riley declined to comment to Crain’s. Messages were left seeking comment with Eastern Market Brewing representatives. “We’ve followed Axle closely since early 2017 when they shifted focus from distribution to their taproom

and admired all that Dan and his team did for the Ferndale community,” Dayne Bartscht, managing partner of Eastern Market Brewing, said in the release. “When Axle announced they would be closing, I reached out to Dan to offer my support. What started as a hug has ended in a handshake. We’re grateful for the opportunity.” Axle Brewing said in June it decided to close because it didn’t see a “clear path to profitability” and struggled with lean distribution margins. The brewer had said it was looking at potential acquisitions or partnerships. Meanwhile, Eastern Market Brewing was pacing to hit $1 million in revenue for the first time since it opened in 2017 at 2515 Riopelle St., Crain’s reported in July. It is still planning to expand its home base, alongside expanding outside the city to Ferndale, the Detroit Free Press reported.

C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 2 3 , 2 0 1 9

VAPING FROM PAGE 1

Industry view Retailers such as Troy-based Wild Bill’s Tobacco, which operates more than 100 stores that sell flavored vape products, said the move by the governor “hijacked the legislative process” by not allowing businesses a voice. Paul Weisberger, vice president and legal counsel for the retailer, said more than 800 retail shops statewide are dedicated to selling vape products, including 10 standalone Mr. Vapor shops owned by Wild Bill’s. There are an additional 100 vape liquid manufacturers across the state, Weisberger told Crain’s in an interview. Weisberger said hundreds of retail outlets would close because of the ban, and thousands of jobs would be lost. He estimates more than 5,000 employees are supported by the flavored-nicotine vape industry in the state. Wild Bill’s employs more than 600 and generates 20 percent to 25 percent of its $150 million in annual revenue from vape products, President Mike Samona told Crain’s. Mark Slis, owner of Houghton-based 906 Vapor, testified to the House Committee on Oversight on Sept. 12 that the ban will end his business. “If the governor’s order stands and flavors are banned, I will immediately go out of business and file for bankruptcy,” Slis testified. “No question.” A coalition of small businesses and business associations is still deciding whether to file a legal injunction against Whitmer’s emergency ban on flavored-nicotine vaping products. The group, called Defend MI Rights Coalition, is joined by the Small Business Association of Michigan. Spokeswoman Andrea Bitely declined to comment on the group’s plans to fight the ban. “Our big concern is about the precedent that’s being set,” Bitely said. “Today it’s vaping, but what comes tomorrow? Is Coke for adults, but (Faygo) Red Pop a brand for kids? Are we going to be able to have Rice Krispies, but not Rice Krispie Treats cereal? Maybe people are in favor of a flavored-vape ban, but what if the next governor decides they don’t like guns or abortion?” Brian Calley, former lieutenant governor of Michigan and president of SBAM, said the group joined the Defend MI Rights Coalition not in support of vaping but because they believe Whitmer is breaking the rules of governance. “Vaping is just the issue that came up,” Calley said. “The policy position could apply regardless of the subject matter. Either the regular administrative rules should be followed or the legislative process should be utilized to put a set of rules or laws that go through the regular process. It’s one thing if an issue doesn’t go your way in the end, but at least you were heard.” Samona and Weisberger said Wild Bill’s supports increased regulation of the vaping industry, but believes a slower process will allow the industry to adapt to any new rules. “If you’re vaping, you’re not going to die while we work through a legislative process,” Weisberger said. “If that’s the case, then where are the bans on cheeseburgers and Bloomin’ Onions or alcohol and cigarettes?” The rules that Wild Bill’s supports include: limiting vape sales to adults-only stores or a requirement to keep vape products behind the counter out of sight at other stores like gas stations; bans on advertising; mandatory point-

of-sale verification systems; and increased funding for education on the dangers of vaping. Many of these rules would benefit stores like Wild Bill’s and Mr. Vapor because children under 18 years old are not allowed inside. “Education and enforcement would soften the blow,” Weisberger said. “We agree that teen vaping is a problem, so let’s work to get it down. ... Educate teachers and administrators on the issues with using cigarettes and e-cigarettes.”

Growing concerns Whitmer said the health concern is too important to wait. “For too long, companies have gotten our kids hooked on nicotine by marketing candy-flavored vaping products as safe,” Whitmer said in a

statement Wednesday. “That ends today. This bold action will protect our kids and our overall public health.” The cause of the outbreak of lung illnesses still hasn’t been conclusively identified. The CDC says many of the cases involved people who used black-market marijuana-based vape products, but no single product has been linked to the outbreak. Some patients have reported using only nicotine products, the CDC says. As of Thursday, 530 hospitalizations and seven deaths — none in Michigan — have been identified by health officials. On cases for which sufficient data is known, two-thirds of the cases were in people 18-34 years old. Sixteen percent were in people under 18. The CDC has advised that e-cigarette users should not buy vaping products off the street and has advised

young people and people who don’t use tobacco products not to start using them.

Changing business Vaping, which began cropping up in the U.S. about a decade ago, has changed the tobacco business as fewer people smoke cigarettes because of health concerns and social stigma. Wild Bill’s executives believe vaping is safer than traditional combustible cigarettes and has worked to transition roughly 100,000 smokers from smoking to vaping, Samona said. Vape products also produce a higher margin for Wild Bill’s. Samona said many of those customers would return to smoking cigarettes, not transition to tobacco-flavored vape products. “About 97 percent of our vape cus-

YOU KNOW WHAT IT TAKES TO RUN A BUSINESS.

tomers buy flavored vapes, not tobacco flavoring,” Samona said. “Not even 1 percent of those people would start buying tobacco flavor. Flavors are critical to keeping adults off cigarettes.” The other worry, he said, is that Michigan’s flavored-vape ban will simply push users to the black market from either do-it-yourself manufacturers or out-of-state retailers. “Half the kids are buying online today,” Samona said. “Banning them will force them to the black market from a basement manufacturer, and that solves nothing.” President Donald Trump has proposed a federal ban on flavored e-cigarettes, and New York officials approved that state’s ban Tuesday. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

And we’re here to help make it happen. Whether you’re a company of one or a large scale operation, running a business is no small task. It takes passion, drive and dedication. As your business evolves, we’re here to offer experienced guidance and dedicated support to help you. 53.com/CommercialBank

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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 // S E P T E M B E R 2 3 , 2 0 1 9

ROUNDUP

Esports is now recognized as an official high school sport in 15 states — not yet including Michigan, but Parnell said it’s “in the works.”

FROM PAGE 1

Renaissance Venture Capital invested $5 million into the new Revolution fund, Rizik told Crain’s. Case’s Revolution has invested in nine Michigan startups, including four in Detroit. Earlier this year, it led a $7.5 million Series A funding round for direct-to-consumer plant shipping company Bloomscape, and was an investor in StockX and Shinola/ Detroit.

Panel calls for renewed push for film industry

Expat Delane Parnell nets another $50 million Detroit native Delane Parnell netted another $50 million for his esports startup PlayVS during a Series C round of funding, bringing total capital raised to $96 million. Parnell, 27, highlighted the investment Wednesday while being interviewed by Duo Security CEO Dug Song at Detroit Homecoming. Parnell talked about his journey of growing up on the west side of De-

LIVENGOOD FROM PAGE 1

At the same time, Fiat Chrysler Automobiles’ $2.5 billion investment in its Mack Avenue and Jefferson North plants coupled with suppliers seeking to be close to renewed automotive manufacturing on Detroit’s east side have Duggan’s administration scrambling to capitalize on the moment. Duggan said last week the city has to clear more industrial land to assemble the 30-acre contiguous parcels manufacturers need to build modern, single-level factories. It’s the kind of open land Detroit lacked after the end of World War II when the automakers started venturing out into the cornfields of Macomb County, Downriver Wayne County and far-flung exurbs like Orion Township and Romeo to build automotive assembly and parts plants. But the mayor’s office is treading lightly on the sensitive subject of land clearing because it invokes raw memories in this town of Coleman Young razing the Poletown neighborhood to help General Motors open a new assembly plant straddling the Hamtramck border in 1985. Today’s Detroit mayor lacks the power of eminent domain to seize private property for economic development as the 1980s Detroit mayor possessed, complicating the city’s ability to assemble land short of buying out the remaining few residents on whole city blocks decimated by decades of abandonment. “It is a delicate balance to make sure that you’re doing things in the best interest of all of the residents,” said Damon Jordan, managing director of real estate and development at Real Estate Services LLC in Detroit, who previously worked at the Detroit Economic Growth Corp. “Some of the original zoning actually happens to be industrial and actually happens to lend itself to being the first starting point of where you plan out a strategy to transition that sparse residential (area).” In Delray in southwest Detroit, the city has been actively buying out and relocating residents who live on the east and west sides of the 167-acre site destined to become the U.S. port of entry and customs plaza for the new Gordie Howe International Bridge. This is a case where there’s a strategy in place for the long-term

KURT NAGL/CRAIN’S DETROIT BUSINESS

Detroit expats and locals mingle at a reception for Detroit Homecoming VI at the State Savings Bank in Detroit, which is being renovated by Dan Gilbert’s Bedrock.

troit to achieving rapid success as an entrepreneur. Parnell launched PlayVS last year as a platform for high school students to compete in video games such as “League of Legends” and “Rocket

League.” Shortly after, the company entered into a partnership with the National Federation of State High School Associations — essentially the NCAA of high school — to make esports an official sport.

Property values How Detroit compares with other cities in Michigan and a selection of major cities nationwide in property values.

City

Total property value

Property value per square mile (millions)

Square miles

Taxes abated

Flint

$1.5 billion

$44

N/A

Grand Rapids

$4.8 billion

45.3

$106

5.8%

Kansas City

$7.9 billion

319

$25

7.7%

Detroit

$9.1 billion

139

$65

19.6%

Newark, NJ

$14.3 billion

$550

N/A

Memphis

$12.6 billion

315

$40

3.8%

Portland

$65.7 billion

145

$453

1.9%

Chicago

$86.3 billion

227

$380

N/A

Charlotte, NC

$98.8 billion

308

$321

N/A

Source: Detroit City Council; Crain’s Detroit Business research

A key proponent of Michigan’s now-defunct movie incentives program intends to call Gov. Gretchen Whitmer Monday morning to discuss renewing the state’s pursuit of the film industry, potentially including incentives. Former Senate Majority Leader Randy Richardville moderated a Detroit Homecoming panel Friday morning on building digital and media arts locally. The panel comprised MGM Studios’ Nancy Tellem, who moved to Detroit recently and has advocated for state public policy to attract film and digital media business; Mitch Albom, an author, Detroit Free Press columnist and screenwriter; and Tim Flattery of the College for Creative Studies. Richardville said after the panel that he plans to start Monday building a strategy to bring film, TV and video sembled at Ford Motor Co.’s Michigan Assembly Plant in Wayne. And the Duggan administration has been laying the groundwork for two years for potentially portioning off a piece of the underutilized 264acre Coleman A. Young International Airport for industrial redevelopment. To secure FCA’s new Jeep assembly plant, the mayor’s office closed a section of St. Jean Street, bulldozed a berm and swapped land all across the city to assemble more than 200 acres of land around the two plants — and then gave it all to the global automaker as part of an incentives package. Duggan’s other main selling point to the Auburn Hills automaker is that the city has the under-employed population base to fill FCA’s need for

“It actually is a way for Detroit to leapfrog over every other city in the country competing for jobs, including Chicago, if it finds a way to use that land intelligently to attract residents and industry.” — Ken Buckfire, president and managing director of Miller Buckfire & Co. LARRY PEPLIN FOR CRAIN’S

planning of this once-vibrant neighborhood. But at this point, the Duggan administration is not prescribing a future for other hollowed-out neighborhoods where 19,000 blighted and abandoned homes will be torn down in the next five years under his bond proposal. City officials will wait to get input from the remaining residents on a neighborhood-by-neighborhood level, said Arthur Jemison, the mayor’s group executive for housing, planning and development. “In those areas that there is vast vacancy, we’ve got to get neighborhood input about what should be there,” Jemison said in an interview. “That’s just the way we’re doing demolition here.” While the mayor’s office doesn’t

want to publicly designate certain residential sections of the city as destined to be the future site of another auto parts supplier plant, it’s not unreasonable to assume that they’re at least thinking about it. Two generations ago, the I-94 Industrial Park northeast of the I-75 and I-94 interchange was a residential neighborhood. Some of the original residential streets were still visible as recently as five years ago. Now it’s a mostly built-out park of industrial facilities such as Linc Logistics’ warehousing operation for General Motors Co., ArcelorMittal Tailored Blanks’ plant where highstrength, laser-welded steel blanks are produced for automakers and Flex-N-Gate’s new plant, which is pumping out dozens of parts going into the new Ford Ranger being as-

5,000 new workers. Finding those workers in some exurb could have been problematic, he said. “We know that if we can deliver quickly, cut through the bureaucracy, get the permits done quickly that we’ve got the workforce here that wants to work hard and be trained — and we think that’s the formula,” Duggan said at the opening night of Detroit Homecoming in the former State Savings Bank building on Fort Street. “And now I just have to assemble some more land.” As business and industry have turned back to cities for talent and workers, Detroit has what most developed cities could only dream of: Miles and miles of vacant land, the remnants of a city that was built for 2 million and has been reduced to nearly one-third of its population in 1950.

game dollars to Michigan. He said it would be “great” if the Legislature and/ or Whitmer jumped on board for some sort of public financing, but he wants to advocate for the industry regardless. Any government program shouldn’t be structured the same as before, he said. Michigan started its film incentives program in 2008 and it ended in 2015. It used public financing to entice productions such as the “Transformers” series to the state. Critics have said spending millions of dollars on moviemaking was unjustified and few fulltime industry jobs had been created. More movies and shows are being made now because of streaming, but producers are looking closely at costs, Tellem said. “Every production right now is about, ‘Where can we go to save money?’ ” Tellem said. “And it’s so frustrating. We’re actually, at MGM, producing the Aretha (Franklin) movie, and we’re going to Atlanta, (not Detroit), and it’s one of those things that’s absolutely absurd … We’re only looking at places that offer tax credits, because there’s more demand for content (and) he cost of production is going up.” But there are multitudes of political and private interests to navigate in forging a cogent land-use strategy for the future. By Buckfire’s count, there are 17 governmental entities or not-forprofit housing organizations that own or control swaths of vacant land in Detroit. Cobbling together a strategy across multiple levels of government for reusing the land is “really a state problem” akin to the financial emergency that landed Detroit in bankruptcy, Buckfire said. Buckfire, by the way, is not an urban planner. His day job isn’t in public finance, either. But Buckfire knows how to leverage assets. He and his firm orchestrated the creation of the Great Lakes Water Authority, spinning off the Detroit Water and Sewerage Department’s suburban assets to the authority — and extracting a $50 million-a-year lease payment from the suburbs that’s helping Duggan finance a $500 million, five-year replacement of neglected water and system pipelines. And Buckfire has been tracking the city’s progress closely. “Detroit now after five years has done a great job of restoring services — people have new police cars, the buses run, the lights work,” he said. “The basic requirements of living in a city have now been restored.” But the universal measuring stick for the city’s progress is the wealth of its citizens and the value of their property. The median household income in Detroit remains $28,000 — and four in 10 Detroiters live in poverty. Detroit’s total property values total around $9 billion — $65 million for every square mile. By comparison, property values in Grand Rapids are $106 million per square mile. Doubling the value of Detroit’s vast tracts of unused land should be its No.1 public policy objective, Buckfire said. “If you can crack this problem, that 40 square miles will be the trigger for massive economic expansion in Detroit that will go on for decades,” Buckfire said. “If they don’t solve this problem, despite all of the heroic work people have done in downtown and everywhere else, the city will fail to achieve its potential.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 2 3 , 2 0 1 9

WELLOPP

admitted within 30 days of discharge for six conditions, including heart attack, COPD, heart failure and pneumonia. Hospitals can be penalized up to 3 percent of annual Medicare feefor-service revenue, which can amount to hundreds of thousands of dollars. Gould said McLaren Port Huron tried a variety of approaches to reduce readmissions, including partnering with home health agencies and nursing homes, increasing discharge instructions and working more closely with primary care doctors. “We were looking for something different because nothing was working” as effectively as administrators wanted, she said. Port Huron was penalized about $160,000 in 2017. In March 2018, Port Huron hired Wellopp to initially focus on patients with the highest risk of readmissions: patients with congestive heart failure and COPD, Gould said. In the U.S., based on Medicare statistics, one out of every six discharged patients is readmitted within 30 days. One-third of those are readmitted within seven days of discharge. But most readmissions are caused by issues outside the direct control of hospitals or a patient’s immediate health condition, studies have shown. As much as 60 percent of factors are behavioral, social and environmental, according to the Yale Global Health Leadership Institute.

FROM PAGE 3

Wellopp CEO Tom Lauzon, the former chief information officer and executive vice president of Meridian Health Plan in Detroit, said providers want to improve patient outcomes, but also help reduce inpatient readmissions — which can benefit their bottom lines. “It is all about reducing health care costs and being a good community partner, helping our most vulnerable population,” Lauzon said. “Once we identify their needs, we can connect them Lauzon with local social service organizations, food banks, transportation services, or other community resources that can help them.” Founded in 2014, Wellopp’s software helps providers discover their patients’ social determinants of health, said Lauzon, who joined Wellopp as its CEO in early 2016. Lauzon is one of Wellopp’s investors, along with ProMedica, a 13-hospital integrated health system based in Toledo, and Arsenal Capital Management, a St. Louis-based venture-capital investment group. The company expects revenue of $450,000-$500,000 this year and projects $1.8 million in 2020 as it rolls out to more customers. Besides hospital clients such as McLaren Port Huron and St. Joseph Mercy Oakland in Pontiac, and ProMedica’s 900-physician group, Lauzon said Wellopp is on the verge of a growth spurt because providers and payers are aiming to more fully account for social determinants of health. Lauzon said Wellopp is talking with a large national pharmacy chain about a deal for it to use its online patient-screening tool and support modules. He declined to name the pharmacy because talks are ongoing. Other organizations that Lauzon said can benefit by identifying social determinants of health include Medicaid health plans, commercial insurers and accountable-care organizations that contract with Medicare to manage senior care. An increasing number of health insurers have factored social determinants into benefits and assigned outreach workers to assist members. Meridian was a pioneer in using information technology and other services to help members make appointments and overcome social barriers to health. Payers are thinking beyond the doctor’s office when it comes to what they will help pay for. In April, the Centers for Medicare and Medicaid Services announced that in 2020 chronically ill Medicare Advantage patients may access a broader range of benefits “that are not necessarily health-related … (and) can address social determinants of health for beneficiaries with chronic disease.” For example, a Medicare Advantage member with asthma may be able to get coverage for home air purifiers or carpet cleaning services. Or a diabetes or heart failure patient could access food plans or dietitian services.

How Wellopp works Using a tablet device, patients during hospital discharge or at a physician office visit answer a series of computer-generated questions: Do

WELLOPP

Wellopp’s patient discharge screening tool summary screen shot that shows risk factors for a discharged patient.

“The tablet format allows patients to use all three senses: auditory, visual and touch. It seems to engage the patient to answer the patients more truthfully.” Tom Lauzon

you see your doctor, how much do you drink, do you smoke, do you exercise, do you have access to healthy food and is transportation available to you? The tablet tends to get honest answers, Lauzon said. “The tablet format allows patients to use all three senses: auditory, visual and touch. It seems to engage the patient to answer the patients more truthfully,” Lauzon said. Wellopp’s survey tool supplements the hospital or physician office’s own patient questionnaire and also diagnostics, medication use and other medical indicators. While not all patients agree to use the tool, those who participate receive text messages with medication reminders, wellness tips and more for up to 30 days after discharge with Wellopp’s Messenger system, Lauzon said. Overall, 70 percent who have agreed to participate in the screening tool for chronic obstructive pulmonary disease (COPD) or heart failure sign up for the text message program. Of those, 50 percent respond to one message and 20 percent use the messaging system regularly. Only 15 percent of those asked to supplement their discharge questionnaire with Wellopp decline to participate. “We found in the beginning that only 20 percent of emails were

opened, but when we went to text messages, the number went up to 80 percent,” he said. To boost those numbers, Wellopp began a reward system where the client agrees to give patients a $10 gift card for food when they enroll. If they complete the form, the reward increases to a $25 gift card. On the provider end, once Wellopp signs up a hospital or doctor group, they work with the provider to come up with a list of community resources to put into the database. Called Wellopp Connect, the service reaches out for local resources in the community for which each patient has a need. They essentially act as referrals. Patients are given contact information, but also the community resources are contacted to coordinate service delivery. If connections can’t be made, Wellopp and providers are alerted that the patient may be at greater risk. “When we refer someone to a food bank, the message also goes to the food bank for follow-up” with the patient, Lauzon said. “Then we ask the patient if they are satisfied. The reward system is the final piece. We brought the reward system from Meridian. We found that very successful.”

Hospital clients At McLaren Port Huron Hospital, Holly Gould, clinical outcomes coordinator, said the 186-bed hospital’s Medicare readmission penalty rate was 2.34 percent in 2018. But after the hospital implemented Wellopp’s screening, local resource and messaging modules, the penalty dropped to 1.85 percent through April. “Or overall all-payer readmission rate is trending down as well,” Gould said. “We’re definitely heading in the right direction.” Under the Affordable Care Act, hospitals are penalized if patients are re-

ProMedica One of Wellopp’s investors, ProMedica, which declined to comment for this article, began using the Wellopp tool because it was interested in having its employed primary care doctors work more closely with the health system’s 13 hospitals to reduce readmissions and improve care, Lauzon said. But the screening tool can identify other potential problems. Tim Busche, CEO of Envision Health Solutions Marketing and Public Relations in Bloomfield Hills, said the Wellopp tool was used at a ProMedica physician office on a father who had recently lost his son. Envision is supporting marketing and consulting efforts for Wellopp. “He was sad, depressed. He didn’t tell anyone and was planning suicide,” Busche said. “He took the Wellopp survey screening at a doctor’s office. He never shared it in talks. There was an intervention, and he credits Wellopp for saving his life.” Busche also told the story of a woman who did not share her abusive relationship with doctors or nurses or family members. “In fact, the very first time she reported it was on the screening tool. As a result, she was provided with appropriate counseling and removed herself from the situation,” Busche said. Another Wellopp client is St. Joseph Mercy Oakland Hospital in Pontiac, which uses the screening tool in their outcomes-management department for discharged patients and community-outreach department for outpatient cases. Fabian Fregoli, M.D., St. Joseph Mercy Oakland’s chief medical officer, said the 443-bed Catholic hospital began using Wellopp several months ago. “We want to engage patients in total wellness and go beyond the acute visit,” Fregoli said. “Patients trust us with their care, and we want to make sure whatever barriers they may have, we want to identify them.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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 Portfolio Manager Tim Simpson, 313-446-6788 or tsimpson@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 Senior editor, Chad Livengood, (313) 446-1654 or clivengood@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

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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 // S E P T E M B E R 2 3 , 2 0 1 9

THE WEEK ON THE WEB

RUMBLINGS

Amazon to take over Pontiac Silverdome site

Walbridge names next CEO as Rakolta to leave

SEPTEMBER 13-19 | For more, visit crainsdetroit.com

mazon was revealed last week to be the tenant of a $250 million new development on the site of the demolished Pontiac Silverdome. Dubbed “Project Cougar” in Pontiac Planning Division documents related to the former home of the Detroit Lions, Atlanta-based Seefried Industrial Properties is proposing a 3.7 million-square-foot, two-building distribution campus for the Seattle-based e-commerce giant housing at least 1,500 full- and part-time workers. The Planning Commission approved a permit for the 127-acre site last Wednesday night to be used as a warehouse and distribution center. The project is expected to be complete by the third quarter of 2021. In all, Seefried Industrial Properties envisions a roughly 3.5 millionsquare-foot, five-story fulfillment center, along with a one-story, 200,000-square-foot delivery station, the 30-page document says. It also says that there would be 1,800 parking spaces for the larger building and 350 spaces for the smaller building, totaling 2,150. Crain’s reported last month on the developer, which has previously used similar cryptic nomenclature for Amazon.com Inc. developments. In Gaines Township near Grand Rapids, the project was initially dubbed “Project Rapids” before the Seattle-based behemoth was confirmed as the user of an 855,000-square-foot property there. The fulfillment center employees’ wages would start at $15 per hour, the document says. A final site plan review could come Oct. 2, according to the document. The Seefried Industrial website says the company was founded in 1984 and has at least 23 million square feet of property owned and managed. The company has developed distribution centers for Amazon totaling at least 7 million square feet in Birmingham, Ala.; Tucson, Ariz.; and Salt Lake City, according to its website. It is also developed a large facility for the internet retail giant that opened earlier this year in Romulus. In addition, it has developed properties for Mercedes-Benz USA and Best Buy, the company’s website says. The city and Triple Properties reached a court agreement in March 2017 to hire a demolition contractor and raze the 80,000-plus seat stadium, which was home to the Lions until 2002, when the team moved to Ford Field in downtown Detroit. In February 2017, the city sued Triple Properties, which purchased the Silverdome at auction from the city in 2009 for $583,000, just 1.05 percent of the total 1975 construction cost of $55.7 million. The city alleged violations of building and safety codes, as well as illegal storage of vehicles. Demolishing the property in December 2017 was the next major step to finding a new use for the property, which became run down and was photographed strewn with debris. It was generally considered an eyesore in the city of 60,000 people.

ADAMO GROUP

The 127-acre former site of the Silverdome is to be used as an Amazon warehouse and distribution center.

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

1,500+

Number of jobs Amazon is expected to bring to Pontiac Silverdome site

$127M

Total cost of the 239,000-squarefoot Henry Ford Detroit Pistons Performance Center

Square footage in downtown Detroit that is being developed or was recently completed

short in its bid to win $1 million when it placed second Wednesday night in the finale of season 14 of the reality TV talent competition “America’s Got Talent.” J The pressure on Rivian to nail the engineering, manufacturing and quality of its electric vehicles just got amped up — way up — with the news Thursday morning that Amazon has placed an order for 100,000 delivery vehicles from the Plymouth-based startup. The first Amazon delivery vehicles are expected to be on the road in 2021, Rivian spokeswoman Amy Mast said. J Credit ratings agency Moody's Investment Services has bumped up Wayne County's credit rating by one notch, noting a stable financial outlook.

etroit-based construction giant Walbridge Aldinger Co. has named its next CEO as John Rakolta Jr. prepares to step down to become U.S. ambassador to the United Arab Emirates. Walbridge President Michael Haller, who started with the company as an intern in 1973, is being promoted to the job. Rakolta, 72, had said he would resign from the company if his nomination cleared the U.S. Senate. The Senate confirmed him Tuesday with a 63-30 vote. A news release did not say when Rakolta would leave the company he has been with for 48 years. Crain's requested additional comment from a representative. “Mike (Haller) and I have worked shoulder-to-shoulder for several decades, working through the challenges of the construction industry to meet the needs of our customers,” Rakolta said in the release. Haller has been directly involved in management of more than 200 major projects in the United States, Canada, Mexico and Brazil, the company says. In 2012-15, Haller helped lead construction of FCA US LLC’s largest manufacturing complex at the time

Rakolta

Haller

in Goiana, Brazil, with a 3.5 millionsquare-foot main plant and a 2.7 million-square-foot supplier park next to it Haller said in the release that Walbridge management has been preparing for a leadership change since Trump nominated Rakolta, a major Republican Party fundraiser, for the diplomatic position to the oil-rich Persian Gulf state in March 2018. Rakolta has been chairman and CEO of Walbridge since 1993, succeeding his father, John Rakolta Sr. The company, more than a century old, is headquartered in downtown Detroit. It builds manufacturing plants, hospitals and government facilities, and reported $1.34 billion in revenue in 2018, putting it 17th on Crain’s Private 200 ranking of the largest privately held companies in the region.

HEALTH CARE NEWS BUSINESS NEWS J Detroit Mayor Mike Duggan wants voters to approve a $250 million bond proposal that could trim the city’s residential blight removal timeline by eight years. He said he submitted a plan to Detroit City Council for approval that would put the bond issue on the March 2020 presidential primary ballot. J Detroit Red Wings fans will soon be able to sport a piece of the iconic Joe Louis Arena in downtown Detroit, which is being demolished. Jewelry maker Rebel Nell, which repurposes fallen graffiti paint, is teaming with the Red Wings Foundation to create a limited-edition collection of jewelry that incorporates chips of the arena's signature red paint collected from outside of the building. The Joe Collection will go live Sept. 27. J Troy-based Entertainment Publications LLC — best known for its iconic coupon book sold mostly through fundraisers — has been acquired by Newport Beach, Calif.-based Afin Technologies in a deal of around $25 million that comes with new jobs and a new headquarters for the West Coast firm. The coupon book will survive the takeover — at least for another year — and 30-50 new sales, marketing and tech jobs will be added in Troy. J The Downtown Detroit Partnership says there is nearly 5 million square feet of space being developed or recently completed in the city’s central business district. J The Detroit Youth Choir came up

J A new $920 million, 264-bed hospital for the University of Michigan is expected to open in the fall of 2024 after the university's board of regents approved the project last week. Michigan Medicine officials said the new 12-story adult hospital will "transform inpatient and surgical care," create 370 construction jobs, employ 1,900 full-time medical workers and alleviate overcrowding on the main medical campus in Ann Arbor.

REAL ESTATE NEWS J The William Clay Ford Center for Athletic Medicine will be complete next month in Detroit’s New Center with a team of 50 doctors, nurses, trainers and rehab specialists serving athletes at every level. The three-story, 54,000-square-foot sports medicine complex is part of the Henry Ford Detroit Pistons Performance Center. The entire 239,000-square-foot, $127 million development on Amsterdam Street will also house the Pistons headquarters. J Tenants at the Somerset Collection in Troy will be able to use temporary, rotating space in the Element Detroit hotel in the Metropolitan Building in downtown Detroit. Nate Forbes, managing partner of the Southfield-based Forbes Co., which owns Somerset Collection, said that a five-year lease will allow the swank mall’s 180 or so retailers to take space in 1,400 square feet that’s being built out with anticipation of opening before Christmas.

AARON ECKELS FOR CRAINS

Singer and songwriter Allee Willis is among the Mumford High School graduates to be honored at its Hall of Fame gala Oct. 5.

Mumford alumni Willis, Vann, others to be honored T

he alumni association for Detroit’s Mumford High School will honor singer and songwriter Allee Willis, the Bishop Edgar Vann and broadcaster Al Allen at its Hall of Fame gala on Oct. 5. The gala will take place at 6 p.m. at the Greater Grace Church at 23500 W. Seven Mile Road in Detroit. Beth Griffith-Manley, who was featured on the NBC show “The Voice” earlier this year, is scheduled to perform. Other honorees for the Hall of Fame include Bishop Charles Ellis III and basketball coaches Larry Moore and Sam Taub. Tickets are $50 and available at

mumfordhsalumni.org. VIP admission to the black-tie gala is $100 and includes a strolling buffet, premium seating and a meet and greet after the show. Willis, known for writing Earth, Wind and Fire’s hit “September,” has performed multiple times at Detroit Homecoming, produced by Crain’s Detroit Business. The school on Detroit’s near-northwest side has an array of notable alumni, including New York real estate titan and major University of Michigan donor Stephen Ross, Atlantic journalist Jemele Hill and film producer Jerry Bruckheimer.

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ALSO, meet our 2019 Health Care Heroes and take part in tracks focusing on health care literacy, innovation and policy.

FEATURED SPEAKERS: Rana Awdish, M.D.

critical care medicine physician, director, pulmonary hypertension program, Henry Ford Hospital

Mark T. Bertolini

Former Chairman and CEO, Aetna Inc.

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