Crain's Detroit Business, Oct. 28, 2019 by Crain's Detroit Business

Ex-Kelly CEO’s next act focuses on independent workers Page 3 iPSE-U.S. Founder and President Carl Camden

Q&A: Brooke Miller is making space for moms Page 10

OCTOBER 28 - NOVEMBER 3, 2019 | crainsdetroit.com

ECONOMY

HUNTING FOR REVENUE Fewer hunters means fewer dollars for Michigan’s conservation programs By Dustin Walsh | dwalsh@crain.com

or the past 20 years, more and more Michigan hunters have laid down their weapons and the state’s youth haven’t picked them up. Since 2013, nearly 125,000 fewer hunting licenses have been sold in the state, according to data from the Michigan Department of Natural Resources. The decline is part of national trend. Only about 5 percent of Americans hunt. In the late 1960s, that figure was more than 10 percent, according to the U.S. Fish and Wildlife Service. The decline has big consequences for many parts of Michigan’s outdoor economy.

GETTY IMAGES

SEE DNR, PAGE 29

NONPROFITS

DIA expands donor pool in push to meet $400M goal By Sherri Welch swelch@crain.com

While hosting a private tour of the Detroit Institute of Arts for a group of leaders from the local Indian community a few years back, Director Salvador Salort-Pons got an unexpected question: Did he know how to make paella? He sure did. Would he make it for them? Of course, he said, suggesting that the person who asked gather a group of his friends and Salort-Pons and his wife would come and cook. crainsdetroit.com

Little did he know, more than 100 people from the Indian community would show up that night to eat paella at the Bloomfield Hills home of Dr. Raj Patil. It was a fun and different way for the group to get to know him and vice versa, Salort-Pons said. “It was (also) an opportunity to hear what they hoped the museum could do for their community … how (the DIA’s) Indian gallery would actually be part of their lives,” he said. SEE DIA, PAGE 28

Vol. 35 No. 43 $5 a copy. $169 a year.

NEWSPAPER

CANNABIS

Helping those hurt by pot laws Social-equity programs aim to give businesses a leg up By Kurt Nagl knagl@crain.com

In 2008, Cory Roberts was finishing a nearly five-year prison sentence for marijuana possession. He had been caught with half a joint, arrested and put on probation. He had been smoking pot for years, mostly to help him fall asleep and deal with post-traumatic stress disorder from his father’s death. After repeatedly violating probation by using pot, a judge sent him to prison. When he got caught with a joint there, the prosecutor threw the book at him, painting him as a public threat even though his only crimes were marijuana possession. While imprisoned, Roberts spent many sleepless nights studying and earned a certification in horticulture. A decade later, Roberts, 41, is a rising cannabis entrepreneur in Muskegon Heights. The source of his woes is now at the center of a business he dreams of growing once the state begins accept-

“It almost brings tears to my eyes thinking about how it is a way of saying sorry.” — Cory Roberts

CONTRIBUTED PHOTO

Cory Roberts (right) and Nigel Douglas, co-owners of Michigan Cannabis Chefs LLC, are making their mark with the cannabis fine-dining popup.

ing recreational marijuana business licenses Nov. 1. He’s also at the front of the line for a state social equity program designed to help those most hurt by past marijuana crackdowns. “It almost brings tears to my eyes thinking about how it is a way of saying sorry,” Roberts said. The state program was rolled out earlier this year by the state’s Marijuana Regulatory Agency, a branch of the Department of Licensing and Regulatory Affairs. It has held dozens of informational meetings throughout the 41 communities that have been identified as being adversely affected by marijuana enforcement. The agency’s goal is for 50 percent of licensees in targeted areas to have also been beneficiaries of the program. Roberts, whose prison sentence was corroborated by records from the Michigan Department of Corrections, is one of about 150 people who have applied to the program so far. Many have similar stories. SEE MARIJUANA, PAGE 25

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

MICHIGAN BRIEFS

INSIDE

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

Whitmer seeks to expand overtime pay threshold to 200,000 Michigan workers Gov. Gretchen Whitmer wants to expand overtime eligibility to thousands more Michigan workers, suggesting she would set the threshold for automatic eligibility much higher than the U.S. Department of Labor’s own overtime pay expansion set to begin Jan. 1. Under the new federal rules issued in September, approximately 1.3 million salaried workers earning less than $35,568 will be presumed eligible for overtime, up from the previous standard of $23,660 set in 2004 by the George W. Bush administration. But Whitmer said the new threshold isn’t enough. Under Obama administration rules, workers earning up to $51,000 per year would be eligible. Whitmer did not say exactly what she would like Michigan to enact but hinted that it could be higher than the Obama rules. “For a family of four, they need to make over $61,000 a year (to cover basic needs),” Whitmer said Thursday at a news conference, referring to a 2019 United Way study. “So I would anticipate that it’s in that ballpark,

CALENDAR

but I’m not going to pre-judge it. This is the beginning of the rule-making process.”

Gov. Gretchen Whitmer ended pilot programs to test whether health plans should manage the state’s nearly $3 billion Medicaid mental health system, the Michigan health department announced last week. Part of the reason for the pilots’ end was Whitmer’s veto of funding that encompassed the controversial program, which faced skepticism and opposition from many mental health providers, administrative organizations and families of the 300,000 patients in the Medicaid behavioral health system in Michigan. Managed-care health plans have argued that they can successfully integrate management of behavioral health services with Medicaid physical health coverage, which they already administer. Most sides agree that the way Michigan finances and delivers behavioral health services for the poor and disabled is broken. But they disagree about whether a solution is to fix the current publicly administered system or find a way to switch to a more privately managed system. Three pilot programs in Genesee, Saginaw, Muskegon, Lake, Mason and Oceana counties that were supposed

CLASSIFIEDS

DEALS & DETAILS

MARY KRAMER

OPINION

OTHER VOICES

State ends mental health pilot programs

KURT NAGL/CRAIN’S DETROIT BUSINESS

Gov. Gretchen Whitmer announces her plan to expand overtime pay eligibility to Michigan workers Thursday in the Peacock Room boutique, owned by Rachel Lutz (left), in the Fisher Building in Detroit.

to test the ability to integrate physical health and mental health under Medicaid were instead terminated. After two delays on the pilots going back to 2018, the health plans and mental health providers had not been able to reach agreement on how to do it.

Legislation pushed to lift private renewable energy project caps

A bipartisan package of bills intended to change how residential users and businesses are credited by utilities for producing renewable energy and ensure continued growth in the industry was introduced last week

in the Michigan Legislature. The three-bill package would remove the current 1 percent cap on renewable energy each utility is allowed to purchase from private entities based on generation capacity, return to the method of crediting customers for generating electricity based on monthly net averages and create a new value-based system of pricing solar that recognizes its contributions to the electric grid and helps avoid higher-priced and dirtier alternatives. Sponsors include three Republicans and two Democrats: Rep. Gregory Markkanen, R-Hancock; Sen. Ed McBroom, R-Vulcan; Sen. Tom Bar-

8, 9

PEOPLE

RUMBLINGS

WEEK ON THE WEB

rett, R-Charlotte; Rep. Yousef Rabhi, D-Ann Arbor; and Sen. Jeff Irwin, D-Ann Arbor. “It is a jobs package. Right now the solar industry is growing 2.5 times faster than any industry in Michigan,” said Laura Sherman, president of the Michigan Energy Innovation Business Council, which supports the bills. “It is booming, but (the industry) will hit the legislative cap for distributed solar in one to two years. We will run out of space in that program. When that happens, everything will shut down, costing 400 jobs.” DTE Energy did not comment directly on the legislation but touted its efforts in renewable energy and said large-scale projects are more efficient. “To date we’ve reduced carbon by 25 percent, and will reduce it another 10 percent by 2022,” the company said in a statement. “Small power sources may have benefits for certain customers, or under certain conditions, but they continue to be expensive and have smaller scale benefits when you consider the broader issues.”

A FORCE FOR GOOD. Building brighter futures...every day. Delta Dental of Michigan is committed to building healthy, smart, vibrant communities. We help businesses in southeast Michigan succeed by supporting initiatives that attract and retain talent, grow business, and make our cities and neighborhoods better places to live. www.deltadentalmi.com

www.buildingbrighterfutures.com

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

TECHNOLOGY

WORKFORCE

Rocket Fiber expanding to Pointes in deal with schools

THE GIG IS UP

By Chad Livengood clivengood@crain.com

Rocket Fiber is expanding its reach from downtown into Detroit’s affluent suburbs, inking a deal with Grosse Pointe schools to build a $2 million fiber network that will allow the internet service provider to start offering residential and commercial service in Wayne County’s wealthiest communities. Grosse Pointe’s school board approved a contract last month for the Dan Gilbert-owned Rocket Fiber to string 14 miles of dark fiberoptic cable along existing utility poles throughout the Grosse Pointe communities to connect 12 school buildings.

Need to know

ALBERTO BERNASCONI/BLOOMBERG

iPSE-U.S. founder Carl Camden said he has seen how independent workers without a traditional employer face more risks in the U.S. than in other countries because employer-sponsored benefits are a bigger part of the safety net in the U.S.

Ex-Kelly CEO’s next act focuses on independent workers By Annalise Frank afrank@crain.com

Carl Camden, the former longtime CEO of Kelly Services Inc., wants to make independent work — freelancing, gigs, self-employment — less like jumping off a ledge without a parachute. Camden, who was with the Troy-based global staffing company for 22 years and then lost a bid to become Oakland University’s president, is now focused on growing the U.S. affiliate of a British association for contractors and independent professionals. He launched the Detroit-based not-forprofit affiliate in summer 2018 as an advocacy and lobbying group, teaming up with a separate, Northville-based for-profit company that offers benefits packages to independent workers who lack easy access to the safety net that employer-sponsored benefits provide. The efforts are expanding through a partnership to be announced Monday with Moon-

IPSE-U.S. VIA YOUTUBE

iPSE-U.S. Founder and President Carl Camden

lighting, an online platform for freelance and remote job connections. iPSE-U.S. has garnered local traction, from bringing on former U.S. Rep. Mike Bishop as a co-president to keeping Camden’s relationship with Kelly Services and drawing on the services of Peter Karmanos Jr.’s Birmingham-based Mad Dog Technology to build out a digital platform. Camden, an advocate for freelancers’ rights for years, said that while with Kelly he saw how workers without a traditional employer faced more risks in the U.S. than in other countries. “As I was finishing up my time at Kelly, I had begun moving the company further into the talent supply chain, where we were supplying major global companies with all the non-employee talent they needed,” Camden said. “We were working increasingly with not just temporaries, but a much larger (array of independent workers). “ SEE CAMDEN, PAGE 27

 Rocket Fiber building $2 million fiber network for Grosse Pointe schools  Grosse Pointe schools will get free internet service for 15 years, free maintenance for 20 years  Deal allows Rocket Fiber to build excess capacity to woo residential, commercial customers in the Pointes

Rocket Fiber has agreed to provide the Grosse Pointe Public School District with free internet access for 15 years and free maintenance on the network for 20 years in exchange for building excess capacity that the company can use to get a foothold into internet service business in Grosse Pointe, Grosse Pointe Farms, the Park, the Woods and the Shores. “It helps Rocket Fiber grow,” Rocket Fiber CEO and co-founder Marc Hudson said in an interview with Crain’s. Rocket Fiber was the low bidder to build and service a 10-gigabit fiber network that the school district will own, Grosse Pointe schools Superintendent Gary Niehaus said. SEE ROCKET, PAGE 26

REAL ESTATE

Proposed millage in Macomb County sparks controversy Former state legislator who was expelled from Senate among opposition By Kirk Pinho kpinho@crain.com

A Nov. 5 ballot proposal to raise Washington Township property taxes to pay for a new community center and possibly land a large corporate development has divided the Macomb County community of 27,000. The campaign has faced wide-ranging accusations, from overpaying for property and private-sector bailouts to ulterior motives and a deliberate misinformation campaign. The 0.25-mill, 20-year tax increase would raise about $1.45 million in the first year to purchase and redevelop the Total Sports Park at 65665

Need to know

 Ballot proposal would raise Washington Township property taxes to buy 80 acres of land, fund new community center  Opposition group led by former state Sen. Dave Jaye says proposed purchase is “bad deal”  Township supervisor alleges ulterior motive to torpedo possible economic development project

Powell Road near 30 Mile Road east of M-53 (Van Dyke Expressway). Taxpayers currently pay about 0.75 mills for a parks and recreation levy that also is paid by Bruce Township and

the village of Romeo, the northern portion of which is within Bruce and the southern portion of which is in Washington, split by 32 Mile Road. If approved, the township would spend $11.5 million for the Total Sports Park’s 80 acres ($4 million) and the main 118,000-square-foot building ($7.5 million) that sits on the site as well as some ancillary structures like a house and storage buildings. From there, about $6 million would be spent to add tennis courts, baseball diamonds and a splash pad and playscape, among other things, according to the township. SEE MILLAGE, PAGE 26

ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

A 0.25-mill, 20-year tax increase would raise about $1.45 million in the first year to purchase and redevelop the Total Sports Park.

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

PROVEN DISRUPTIVE PROPRIETARY

REAL ESTATE INSIDER

SANITATION PRODUCTS

JOINT VENTURE OPPORTUNITY

Issued and Pending Patents – Good Sales

Add your assets, capital, experience and concepts to jump start the current opportunity www.PortaJohnJointVenture.com EARL 800-521-6310 • INFO@TOILETS.COM

Redico LLC and the Avis family plan to develop 156 acres of Pittsfield Township land near Ann Arbor.

Seasoned

Connected

Ve r s a t i l e

CALL OUR TEAM FOR A FREE P R O P E R T Y VA LUAT I O N Kevin Jappaya, CCIM President

Investment Sales Seller/Landlord Representation B u y e r / Te n a n t R e p r e s e n t a t i o n

kjcre.com 248.851.8900

30201 Orchard Lake Road, Suite 100

Farmington Hills, MI 48334

CANNABIS REPORT Coverage of an emerging industry in Michigan

The state’s legalization in 2018 of recreational cannabis use marks its entry into the marketplace. Follow our coverage as activity in this emerging field heats up and as key players look for roles in the cannabis industry.

Visit crainsdetroit.com/cannabis

COURTESY OF REDICO LLC

Redico, Avis team to develop 156 acres near Ann Arbor Redico LLC and a member of the Avis family are teaming to develop 156 acres of land in Pittsfield Township near Ann Arbor. KIRK A joint venture PINHO between the S o u t h field-based developer and landlord and Asset Property Management Inc., run by Wayne Avis, owns the property and would develop and own the life sciences, tech, research & development, light industrial and office buildings envisioned for the site, said Dale Watchowski, president and CEO of Redico. The property consisting of nine parcels ranging from 2.5 acres to 17.5 acres is at the southeast corner of Textile Road and State Street. “The Avis family owned land, and they were looking for us to contribute development expertise,” Watchowski said. “We were also, at the same time, looking to continue to develop in the corridor that extends between Detroit and Ann Arbor, really looking at continuing the initiative that we started at (Five Mile and Beck roads in Northville), with our more recent development, Hoover and Greene (in Ann Arbor), the idea that we wanted to continue growing in that market largely to take advantage of opportunities that come as a result.” Watchowski said the site could accommodate more than 1 million square feet. There are “several companies with whom we are in active discussion” for the site, he said in a statement. The Ann Arbor office of Colliers International Inc. has been retained as the brokerage firm marketing the property. In another recent Ann Arbor flex/ office space move, a new company called Portage Capital Partners LLC announced its plan to do a $60 million to $70 million, 230,000-square-

ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

The Albert Kahn-designed former Detroit Police Department headquarters at 1300 Beaubien St. downtown opened in 1923.

foot speculative project in the Ann Arbor Research Park near I-94 and State Street. Data from the real estate brokerage firm Swisher Commercial in Ann Arbor shows 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. Redico’s activity in the western suburbs includes a series of build-to-suit projects in the Northville Technology Park at the northeast corner of Five Mile and Beck roads, and the former Detroit House of Corrections property to the west down Five Mile Road. It is also working on a 167-unit apartment building in Ann Arbor proper north of Michigan Stadium set to be complete over about two years after a July groundbreaking ceremony.

$120M for 1300 Beaubien Dan Gilbert’s team is seeking a Commercial Rehabilitation District for the former Detroit Police Department headquarters at 1300 Beaubien St. downtown for an up to 10-year property tax abatement. In its documentation to City Council, the Detroit-based real estate company says the redevelopment of the property into a boutique hotel is expected to cost about $120 million. That’s based on square footage, not specific plans. Council briefing documents say construction is expected to take about 30 months once it begins after the establishment of the district. Bedrock LLC got the 1923 building in a deal with a Detroit bankruptcy creditor, Bermuda-based Syncora Guarantee Inc., in February 2018. I reported in March that it was expected to be about 200 rooms. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

A cable outage ouldn't be the end of your work day. AT&T Internet for Business has 99.9% reliability, unlike second-rate cable internet. It operates on AT&T’s integrated network and features Internet Backup. So even if you lose power, you won’t lose internet.

S:13.5"

Act now

to enjoy a $100 AT&T Visa® Reward Card* with fast, 1GB service. Go to att.com/BizInternet2, call 855-366-6255 or visit a local store to take advantage of this oﬀer today.

Read the Terms of Service at: www.att.com/internet-terms. Acceptance of Terms of Service is required. Geographic and service restrictions apply to AT&T Internet services. Go to https://www.att.com/smallbusiness/explore/internet.html to check qualification. Internet speed claim(s) represent maximum downstream and/or upstream speed capabilities. Actual speeds may vary and are not guaranteed. Many factors can affect actual speeds, including site traffic, content provider server capacity, internal network management factors, device capabilities and use of other services. Prices and offers subject to change without notice. Term commitments, Early Termination Fees, credit restrictions and other terms, conditions, and limitations may apply. Advertised services not available in all areas. Offer, terms, and restrictions subject to change and may be modified or terminated at any time without notice. AT&T Internet Promotion - $100 AT&T Visa® Reward Card* offer available through 12/31/2019. Offer available to new AT&T Internet for Business and AT&T Business Fiber subscribers or customers migrating from FastAccess® Business DSL or AT&T High Speed Internet Business Edition to AT&T Internet for Business or AT&T Business Fiber. Offer not eligible for renewals or speed upgrades. Offer is not available to local, state, or federal government entities, e-rate eligible entities or Rural Health Care (RHC) entities. Customer must have active service in good standing for a minimum of 60 consecutive calendar days and must remain active at time of redemption to qualify for $100 AT&T Visa® Reward Card* (“Reward Card”). A maximum of one Reward Card may be issued per account (i.e. phone number to which AT&T Internet line(s) is/are billed). Qualified subscribers must complete the online redemption process at the AT&T Business Reward Center at https://rewardcenter.att.com/Smallbusiness/default.aspx by the date provided in the redemption letter to obtain Reward Card. *Reward Card: Will be sent letter with redemption requirements. Redemption required w/in 60 days from reward notification mail date. Reward Card delivered within 3-4 weeks after redemption to customers who maintain qualifying service(s) from installation date and through reward fulfillment. Card expires at month-end 6 months after issuance. For Cardholder Agreement, go to rewardcenter.att.com. The AT&T Visa Reward Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. and can be used everywhere Visa debit cards are accepted in the United States, US Virgin Islands, and Puerto Rico. Not available for withdrawal of cash. The Bancorp Bank; Member FDIC. Visa U.S.A. Inc. is not affiliated with AT&T or this offer. AT&T is not responsible for lost, late, mutilated, misdirected or postage-due mail. Void where prohibited, taxed or restricted. May not be combined with other offers, discounts or promotions. Offer, terms, and restrictions subject to change, and may be modified or terminated at any time without notice. Credit restrictions and other conditions and limitations apply.

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

University Physician Group, now out of bankruptcy, plans for ‘new day’ in new digs By Jay Greene jgreene@crain.com

College of Nursing

CONGRATULATIONS

WSU nursing graduate Danielle Bastien (DNP ‘18), who was named a 2019 Crain’s Detroit Business Health Care Hero!

After more than three years of financial struggles, University Physician Group, a 301-physician academic medical group affiliated with Wayne State University School of Medicine, has turned the corner since filing for bankruptcy nearly one year ago, posting a surplus of $3 million in the second and third quarters of this fiscal year after losing more than $8 million in 2018. Earlier this month, UPG’s 48-member administrative staff took another step into the future by moving into new headquarters at 400 W. Mack Ave., the former home of Hospice of Michigan, located near the Detroit Medical Center’s downtown campus. An additional 22 people employed by Caduceus, a revenue-cycle staffing firm under UPG contract, will move into the building this week. “It is a new day” for the university faculty practice plan, said Charles Shanley, M.D., UPG’s CEO. “We have come a long way in a short Shanley time and the best is yet to come. I am excited about what the future will bring.” After paying off its unsecured creditors last week by writing 272 checks for under $8 million, which was less than the $10.7 million maximum that Wayne State University offered to loan UPG to help close the bankruptcy, long-term debt has been reduced by over 80 percent, annualized expenses cut by 22 percent and overhead expenses by 27 percent. Total claims on UPG were about $111 million. “I am pleased to report that WSUPG successfully completed the final milestone on our Chapter 11 journey on October 11,” Shanley said in an e-mail to physicians. “We (paid) our creditors ... completing all of the requirements for emergence in just under a year, and only four months after confirmation of our reorganization plan. This is truly a remarkable achievement.” Shanley thanked Wayne State University President M. Roy Wilson, M.D., WSU medical school Dean Jack Sobel, M.D., New York-based consulting firm AlixPartners and bankruptcy attorney Mark Shapiro, a partner with Southfield-based Steinberg Shapiro and Clark, for helping to move along the reorganization so quickly. In June, Judge Mark Randon of U.S. Bankruptcy Court in Detroit approved UPG’s Chapter 11 reorganization plan that allowed UPG to exit bankruptcy protection. “I knew when I took the job (in February 2018) that I would be moving a lot of things. I know the doctors in the trenches haven’t seen all the (improvements) yet,” said Shanley, a WSU graduate and vascular surgeon, in an interview with Crain’s last week. “These things will gain traction over the next year, and some of that apathy will turn into enthusiasm. ... I don’t see anything to suggest we won’t continue this tra-

Need to know

 University Physician Group moves into new headquarters  Posts profitable quarters with break-even or small surplus projected for year  Paid final unsecured creditors with 272 checks worth $8 million, last step in bankruptcy exit

jectory.” During the first quarter of fiscal 2019, which ended Dec. 31, UPG posted a loss of $4.8 million, primarily as it was absorbing bankruptcy costs and just beginning its reorganization. But in the next two quarters, UPG posted gains of $1.4 million and $1.6 million, Shanley said, adding that he projects UPG to break even this year or run a small surplus. But because UPG closed several clinics and focused more business on the DMC campus, UPG’s revenue dropped to $124 million in fiscal 2019 ended Sept. 30 from $153 million in 2018. As a result, DMC-related revenue increased to 47 percent of total revenue, UPG said.

New headquarters After a process that featured controversy among the Wayne State board of governors, UPG has moved into its new headquarters at 400 W. Mack. Its longterm lease includes sharing space with Wayne Pediatrics, Wayne State medical school’s new pediatric clinical practice. Four of eight WSU governors unsuccessfully sued to halt the Wayne Pediatrics lease, alleging it wasn’t a good deal for the university. But Shanley said the lease is solid and the partnership between Wayne Peds and UPG will benefit greatly the population of Detroit. The two groups are working to finalize business and clinical programming plans to improve patient access downtown. “There is a huge need in the city for all specialties, but especially primary care: general obstetrics, pediatrics, psychiatry, both adult and pediatric,” Shanley said. Herman Gray, M.D., chairman of WSU’s pediatrics department, said Wayne Pediatrics’ administrative staff expects to move into the new UPG building in early 2020. The amount of office space depends on how many faculty members join the university’s new group, but he expects to sign up at least 30 during the next few months. In early April, Wayne State announced a plan to create Wayne Pediatrics as part of a larger plan to partner on community pediatric health with the Henry Ford Medical Group, a 1,200-physician employed group. Gray said WSU was forced to create Wayne Peds after 220-member University Pediatrics left Wayne State for Central Michigan University. UP is the primary practice at DMC Children’s Hospital of Michigan. But the pediatrics partnership with Henry Ford hasn’t fully materialized yet, as a larger affiliation between Henry Ford and Wayne State fell through over a split on the unfolding arrange-

University Physician Group is moving into its new office space at 400 W. Mack, the former Hospice of Michigan building. COSTAR GROUP INC.

ment by a faction opposing the deal on the university board of governors. Gray has previously described Wayne Pediatrics as an effort to unify the medical school’s academic, clinical and research missions “and enable us to better serve our patients, our students” and pediatric faculty members. “We are finalizing floor plans for peds space and will get physician input on it,” said Gray. To repurpose 400 W. Mack as UPG’s headquarters, renovation and moving costs totaled a little under $400,000 for the 10,000-square-foot administrative area, Shanley said. That included new lighting, ceiling tiles, paint, wallpaper removal, carpet, plumbing repairs and phone systems. Furniture and office furnishings were moved from the former Troy headquarters building, he said. Shanley said the plan is to develop the east side of the two-story building as a multi-disciplinary examination area. He said each floor could hold 1825 exam rooms with more than a dozen primary care doctors, including eight to 10 family medicine doctors initially. Overall, “we have dramatically consolidated our footprint” and reduced leased space by 46 percent from 230,000 square feet to 139,000 square feet and occupancy costs by more than 45 percent by leasing only about five main offices, Shanley said. Besides the Midtown 400 W. Mack building and office space at the Harper Professional Building on the DMC campus, UPG has clinics in Southfield, Troy and Dearborn. Shanley said UPG is still completing its physician staffing feasibility study, but said he believes there is a need for an additional 183 primary care doctors in downtown Detroit. “We think there is a huge opportunity to meet a community need. DMC is fully supportive of it and working with us,” he said.

UPG name change? Shanley said the practice is going through a rebranding process that could lead to a name change. The Wayne State-based group has hired Tilt, a Birmingham-based marketing company that has worked with Meridian, Penn Medicine and Oracle, to create a new vision, website and signage. “Rebranding is a process. ... It is more than changing the name. It is creating a new vision,” Shanley said. Since summer 2018, even before UPG filed for bankruptcy, Shanley said the medical group was able to slow the number of physician defections as it stabilized its operations. Before bankruptcy, UPG had 309 physi-

cian recr clud gists geon urol St mor sion mism billin awa of th drop ban W hosp gan, DM

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

Collections, information system improvements

gan

al on

bed unify nical e us stuers. for nput

PG’s ving 0 for ative new aper and ffice for, he

elop ding tion d 18dozding tors

conuced rom uare han five s the d ofonal UPG and

ting udy, d for tors here omrtive

cians practicing. Now it has 301 and is recruiting multiple specialties, including obstetricians and gynecologists, internists, neurologists, surgeons, behavioral specialists and urologists. Still, at its height, UPG employed more than 500 doctors. The slow erosion of doctors, many upset with the mismanagement and poor record on billing collections, and others recruited away by competitors taking advantage of the uncertainty, led to a 22 percent drop in revenue the past four years, bankruptcy court documents show. While UPG contracts with multiple hospital systems in Southeast Michigan, it is keenly tied to the fate of DMC, a seven-hospital system owned

by for-profit Tenet Healthcare Corp. of Dallas. Last October, UPG signed a fiveyear clinical, call coverage and administrative contract with DMC that accounted for about 40 percent of its 2018 annual revenue of $153 million. Working closely with DMC CEO Tony Tedeschi, M.D., through a 13-member joint operating committee, Shanley said the committee regularly meets to discuss hiring and clinical strategies for adult patients. But all the planning and coordinating and bill paying to reorganize UPG won’t make the medical group sustainable if it can’t collect on its patient and insurance company bills and manage patient care and scheduling.

For years, collecting bills was a major problem for UPG. Some experts estimated that UPG collected only 65 percent to 70 percent of bills doctors generated, which lowered production, reduced bonus payments and created distrust and poor morale among some physicians. “Our revenue cycle processes are more modern and efficient” now, Shanley declared in the e-mail to doctors. “Our partnership with Athena/ Caduceus, and work of the management and revenue cycle teams (has) resulted in a $1.7 million increase in collections in (the third quarter) 2019. We expect that to grow with full implementation of the Athena platform and with the patient access improvements we have put in place.” Athenahealth, a Watertown, Massbased revenue cycle firm, helps with billing and collections for hundreds of practices and more than 160,000 doctors in the U.S., Shanley said. “(Athena clients) will see improvements of 5 to 25 percent in collections. We project, conservatively, 3 to 5 percent. This will be total transparency for physicians. The work will be captured and coded properly.” Shanley said UPG doctors will soon have access to billing and accounts receivable through an online dashboard of data using Athena. “We couldn’t do that before, individual-level reporting. They won’t have that discomfort” about not knowing whether their bills have been submitted and paid, he said.

“Doctors are seeing better performance on revenue cycle,” Shanley said. “There is still some skepticism and apathy, but once we move forward with the plan the financial situation will improve and doctors will see it.” UPG also is in the midst of installing a new information-technology system to boost business operations. A $1 million cloud-based Workday ERP software platform, which includes $375,000 for the technology and $600,000 to install, will integrate finance, budgeting and human resources with revenue-cycle functions, Shanley said. Another piece to the puzzle is improving its aging and broken call center and physician scheduling system for initial appointments and referrals by incorporating the Athenahealth system. Shanley said sometime in 2020 it will be fully operational. “We know there is demand out there, but we didn’t have a high-functioning call center,” Shanley said. “Patients called and couldn’t get it and went someplace else.”

Physician compensation system will be a test Another major change is creating a fairer physician compensation system that rewards clinical production, quality, research and education, Shanley said. Besides poor scheduling, and billing and collections, UPG’s compensation system was widely acknowledged to be broken. “We are working toward a more consistent and competitive physician compensation plan,” Shanley told doc-

tors in his e-mail. “We have conducted extensive physician compensation research. Guiding principles and an implementation plan are under development.” Shanley said UPG is in the middle of developing a new compensation plan with administrators, medical school department chairs and San Diego-based ECG Management Consultants. He hopes to have guiding principles developed by January with full implementation by fall 2020. “We bill for consults, but also compensate for nonclinical activities at the School of Medicine (that includes) medical student course directors, resident education, medical education and research,” he said. “Compensation does not just reward productivity, which is important — you work hard and you should get paid. We also want to build in a patient-centered quality focus.” Because the compensation system was skewed for some doctors, Shanley acknowledges that some doctors will see their compensation go down while others will see pay rise. “We are going to run (the new compensation system) parallel with the current system so people are not (immediately) adversely affected,” he said. “We will keep the compensation the same for the next year so people can see what will happen. If some folks want to get paid at a really high rate, they will need to increase productivity in clinical care. Some will see a substantial upside. Everyone will see compensation rise with better revenue collection.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

Health insurers creating a better Michigan Our mission is straightforward: To provide leadership for the promotion and advocacy PG IJHI RVBMJUZ BƊPSEBCMF BDDFTTJCMF IFBMUI care for the citizens of Michigan.

oing that The ired ting rid, to sig-

It is It is d. fore nley e to fecBehysi-

mahp.org

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

OPINION COMMENTARY

Governor needs to flex muscle on WSU mess

mpeachment is in the air these days. It can look like a circus sometimes — witness current events in Washington, D.C. — but deciding to remove an elected official from office is serious stuff. In Michigan, it has happened rarely. Often, an elected official will resign as the cards are stacking up against them. (More on that later.) More often, we’ve seen governors ask — or push — an appointee to leave. (Witness the firing of Augustin Arbulu by the state Civil Rights Commission after Gov. Gretchen Whitmer banned him from Cabinet meetings.) But it’s time — past time, really — for Gov. Whitmer to use the power given her by the state constitution to resolve the mess at Wayne State University. The 4-4 stalemate on the elected Board of Governors has been painful to watch. Crain’s Jay Greene has reported in detail about the squabble’s effects on one of the crown jewels of the university — its medical school. Each faction fervently believes they are fighting the just fight. One faction, which would like to fire President M. Roy Wilson, has derailed an affiliation between WSU’s medical school and Henry Ford Health System. The other faction, which includes Board Chair Kim Trent, supports Wilson and the Henry Ford matchup they believe is critical to the School of Medicine’s future. Normally, such a governance split wouldn’t rise to the level of gubernatorial intervention. But earlier this year, the controversy spilled into new territory when complaints about WSU landed at the Higher Learning Commission, WSU’s accrediting body. Accreditation is standard in the academic world. Without accreditation, degrees earned by students mean less. Loss of accreditation could risk partnerships and research dollars. And speaking of dollars, the

WAYNE STATE UNIVERSITY

It’s in Detroit’s best interests and the state’s own that WSU’s contentious split on its governing board be resolved.

MARY KRAMER Group Publisher

state of Michigan sends WSU more than $200 million a year and a rough guess is that an additional $2 billion to $3 billion of state dollars have been invested in facilities over the years. The state has a stake in this escalating squabble. The HLC says it received complaints; one of them has been acknowledged to be filed by a former university executive who the anti-Wilson faction on the board demanded be fired. Prompted by the HLC, Wayne State hired an out-of-state and independent attorney to investigate claims that some members of the

elected board had violated HLC norms. The attorney’s report zeroed in on an unnamed board member, acknowledged publicly to be former Chair Sandra Hughes-O’Brien. In the report, she’s described as repeatedly trying to run various operations at the university and threatening to have WSU employees fired — including a provost — when she didn’t get her way. HLC told Wayne State that the actions described in the report violate its accreditation criteria governing ethics and governance, specifically leaving day-to-day university operations to the administration. It asked for a March 2020 status report on how well WSU had followed the independent attorney’s recommended remedial actions, including adoption of a code of conduct for the board. That code was recently rejected in — you guessed it — a 4-4 vote. HLC’s implicit threat to the university’s accreditation should have gotten everyone’s attention. The governor of Michigan could put an end to this nonsense. Under

the constitution, the governor can remove an elected leader for, among other reasons, evidence of “misfeasance or malfeasance.” Malfeasance is the kind of conduct that led thenGov. Jennifer Granholm to begin a removal hearing for Detroit Mayor Kwame Kilpatrick. (At the time, he was facing felony charges and he resigned from office before being convicted.) Misfeasance is a lower bar. In Wayne State’s case, Whitmer could determine O’Brien’s behavior meets the definition of misfeasance — failure to carry out the official duties of a public officer in a proper manner. There is a precedent for removing an elected board member: In 2002, Gov. John Engler began proceedings to remove a trustee (the late John Kelly) from the WSU board because his day job as legal counsel of the Detroit Medical Center represented a conflict of interest. The contentious relations between the DMC and WSU’s School of Medicine over contracts relating to its clinical faculty and teaching roles were beginning to

grow at the time. As the removal went into litigation, Kelly resigned and was subsequently appointed by Engler to the state’s film commission. (If Whitmer wanted to look solely for conflicts on the WSU board, she could review potential conflicts posed by trustee Dana Thompson, a past employee of Wayne State who now works as a clinical professor of law at the University of Michigan’s law school. UM has made major investments in recent years on WSU’s “home turf” in Detroit. Is it a conflict for a UM professor to help set policy for a potential competitor? And it works both ways: UM Regent Katherine White is on faculty of Wayne State Law School. The political parties need to vet their bottom-of-the-ballot candidates to prevent such conflicts. Whitmer could also look at trustee Michael Busuito’s history within the WSU faculty medical practice and see if it influenced his position on the Henry Ford affiliation and desire to fire Wilson as president.) So why should Whitmer wade in now? It’s in Detroit’s best interests and the state’s own that WSU’s contentious split on its governing board be resolved. Besides the obvious danger to the university’s accreditation and the future of its medical school, this mess hampers WSU’s ability to recruit talent — deans and other key executives. It’s dysfunctional and harming the institution that should be one of the pillars of Detroit’s recovery. The governor can — and should — act now.

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

Let’s continue to invest in economic development efforts

n recent years, we have seen Michigan’s economic momentum build, creating more and better-paying jobs for Michigan workers, more vibrant communities for residents across the state and establishing Michigan as a world-class business location and travel destination. That is why the $26 million reduction to the programs that are directly responsible for driving this momentum in the fiscal 2020 budget sent to Gov. Gretchen Whitmer is so concerning. Setting a historic low for investment in critical economic development activities threatens to reverse this momentum and sends the wrong signal to companies and industries looking to invest and grow here in the state. Earlier this year, we collectively celebrated the news that FCA would invest $4.5 billion in Michigan — in-

OTHER VOICES

Mark Hackel and Ron Kitchens

cluding the largest investment in an automotive assembly plant in the U.S. in over a decade — bringing more than 6,400 new jobs to Detroit and Macomb County. This is not just a win for Southeast Michigan. As a state, we stand to benefit immensely. Michigan is home to so many of FCA’s automotive suppliers from tier one on down impacted by the in-

vestment. The state will also see $800 million in cumulative net new tax revenue into the state by 2029 as a result of the jobs being created. Consider the impact Pfizer’s recent investment of $465 million for a new production facility in Portage will have on the Kalamazoo area. The company is creating more than 450 jobs with salaries of $70,100$93,300 — exactly the sort of high wages that will help ensure a more resilient economy and attract new talent here to the state. Pfizer could have chosen from one of 13 global manufacturing locations, but it chose Michigan. These well-paying jobs will have ripple effects throughout the community and will positively impact the entire West Michigan region — and beyond. These are the investments — in

jobs and in our communities — that we will be leaving on the table if we continue down a road of disinvestment in economic development as a state. Speaking of communities, the $26 million cut in funding doesn’t just impact our ability to attract new businesses. It will significantly constrain efforts to support and grow vibrant communities in the state that attract businesses and the workers they need. The Michigan Economic Development Corp. has already had to pause plans to fund the award-winning Façade Restoration Initiative in fiscal 2020 due to uncertainty this budget has caused. Efforts like these provide communities with essential support to strengthen our Main Streets, revitalize downtowns and provide the amenities that will retain and attract

the talent so critical to Michigan’s future success. We cannot take for granted the influx of good-paying jobs, the investment in attractive places in both rural and urban areas and our state’s rising national profile. We must continue to invest in the programs that build the foundation for this success. We urge the Legislature to support a FY20 supplemental budget bill to fund economic development efforts of the Michigan Economic Development Corp. at a level that will ensure that together, we continue making Michigan an even more vibrant state to live, work and play. Mark Hackel is Macomb County executive, and Ron Kitchens is senior partner and CEO of Southwest Michigan First.

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

Missed Opportunity Zone investments — minority-owned banks Minority depository institutions and community development financial institutions play an important role in driving economic development and job creation in distressed communities — and many suggest they can play an even bigger role. Advocates of MDIs and CDFI banks argue that by allowing these community-focused institutions to qualify for tax benefits available to other businesses under the Federal Tax Cuts and Jobs Act of 2017, everybody would win. We couldn’t agree more. MDIs and CDFI banks are excluded from current designations of Qualified Opportunity Zone investments. Under existing regulations, investment vehicles created to channel funding for business development in Opportunity Zones cannot include investments in MDIs or CDFI banks, despite the critical role these banks play in contributing to underserved community development. This is an oversight that can and should be remedied. A little background: Opportunity Zones were created to spur economic development and job creation in underserved, predominantly minority communities by providing investors with tax incentives, including deferring the recognition of capital gains that are reinvested in Opportunity Zones through Qualified Opportunity Funds. These funds are formed for the explicit purpose of investing in businesses and properties located in Opportunity Zones and must hold at least 90 percent of their assets in such entities. MDIs are defined by Section 308 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 as any depository institution where “Black Americans, Asian Americans, Hispanic Americans, or Native Americans … who are U.S. citizens or permanent legal U.S. residents own 51 percent or more of the voting stock.” In addition to institutions that meet the ownership test, institutions are considered minority depository institutions if a majority of the board of directors is minority and the community that the institution serves is predominantly minority. CDFI banks share similar characteristics and missions focused on serving economically disadvantaged communities. There are 70 MDI and CDFI banks headquartered in Opportunity Zones across the country, making them an important source of potential financing to help fuel economic growth in low-income communities. According to the FDIC, these banks can play a prominent role: “MDIs, in particular, have an expertise in making loans to small business borrowers located in low- and moderate-income census tracts … MDIs make a greater share of their SBA 7(a) loans to small business borrowers located in [these] tracts than non-MDI banks.” It stands to reason, then, that MDIs and CDFI banks are in a unique position to provide additional hands-on expertise and focused financial assistance to better achieve the aim of Opportunity Zones — making it essential to include them as qualified investments. The question could be asked — why have MDI and CDFI banks been overlooked in Opportunity Zone legislation? Perhaps in the case of MDIs it is because for years the prevailing assessment was that MDIs underperform non-MDIs in terms of profit-

OTHER VOICES

James Barth and Kenneth Kelly

ability and risk. This position was challenged in a recent research paper titled “Minority Depository Institutions: Why So Few — After 150 Years?” (Barth and Xu, August 2019). Findings of this

study indicate that earlier research into the profitability and risk of MDIs vs. non-MDIs no longer provides an accurate comparative assessment. Instead, their results indicate that, on average, “MDIs represent equally viable opportunities vs. non-MDIs for private investors seeking to invest in banks.” For more of these institutions to be established and succeed, it is essential to increase their access to capital at competitive costs. One way to increase access to capital for MDI and CDFI banks would be to enable them to receive Opportunity Zone investment, which would in turn translate into additional support for under-

served minority communities. Banks are often the cornerstone of economic revival, and the exclusion of these community-focused institutions needlessly impedes the ultimate success of Opportunity Zone initiatives. Major market participants seem ready to preserve MDIs under section 308 of FIRREA, which supports the crafting of such a revision. These participants include the FDIC’s MDI Roundtable attendees, the Treasury Mentor Protégé program and industry organizations such the American Bankers Association working with the National Bankers Association. We call upon all stakeholders in

the banking industry, legislators and regulators to join us in the effort to revise Opportunity Zone legislation by including MDIs and CDFI banks as qualified investments. James Barth is the Lowder Eminent Scholar in Finance at the Harbert College of Business at Auburn University, a senior fellow at the Milken Institute, and a fellow at the Wharton Financial Institution Center. Kenneth Kelly is the chairman and CEO of the First Independence Bank, a minority-owned depository institution headquartered in Detroit. He is also chairman of the National Bankers Association.

This is what 99% client retention looks like.

When a wealth management firm has 99% client retention—as Greenleaf Trust does—you have the time to earn your clients’ trust. And to learn their needs and desires, and what they want their wealth to ultimately enable. Greenleaf Trust integrates ROI strategically with tax planning, risk mitigation, cash flow, retirement, estate planning, trusts, and charitable giving, all the while putting our clients’ best interests at the center of every decision. It’s the reason we have a 20+ year history of fiduciary excellence and have grown to $14 billion in assets under advisement—and why clients stay with us. Call us with your questions; you’ll like our answers. Client relationships begin at $2 million.

34977 Woodward Avenue, Birmingham, MI 48009 248.530.6200 greenleaftrust.com

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

FOCUS

WOMEN IN LEADERSHIP

Brooke Miller is clinical director and founder of Honey Space for Moms and Honey Consulting. ALI LAPETINA FOR CRAIN’S

Making space for working moms to expect more B By Rachelle Damico | Special to Crain's Detroit Business

The Miller File

rooke Miller has experienced many challenges in her life. When she was 13 years old, she was diagnosed with a rare brain tumor, leading her to two brain surgeries. She watched a fire destroy her childhood home. She’s struggled with periods of depression and anxiety. None of these experiences compared to the challenges of motherhood.

Education: Bachelor’s degree in communication from the University of Southern California and a master’s degree in counseling psychology from Pacifica Graduate Institute in California.

“Motherhood is the first thing in my life that brought me to a place of true and constant surrender,” Miller said. “It’s the most incredible role I’ve ever played, but it also brings me to my knees.” As a licensed psychotherapist, Miller recognized that other mothers were experiencing similar emotions. She opened Honey in the back of a Royal Oak-based chiropractic office in 2015. Since then, Honey has moved to Ferndale and recently expanded its now3,700-square-foot space. SEE MOMS, PAGE 11

Career Ladder: Miller started her career in 2002 working as a research marketer for Creative Artists Agency, a talent agency in Los Angeles, California. In her role, Miller worked in a specialized department that studied and collected data about the behavior and needs of young adults aged 18-32, which was used for movies, television and music in the entertainment industry. She left the field to attend graduate school, during which she worked as a nanny and a high school therapist, from 2004-2007. She opened her own private practice in 2007 and closed it in

2014 when she and her family relocated to Michigan. Miller has had an advice column in the San Francisco Chronicle and made several on-air appearances as a therapist on the Ricki Lake Show, a former daytime talk show hosted by actress Ricki Lake. Current Role: Clinical Director and Founder of Honey Space for Moms and Honey Consulting. A mentor: Frank Samson, Miller’s father and founder of Senior Care Authority, an assisted living placement support service based in California. “He has taught me by example that there is a fine line between making sure your heart is present in your business and not taking things personally. Knowing that line has been key to my growth as a leader,” Miller said.

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

SPECIAL REPORT: WOMEN IN LEADERSHIP

MOMS

PROGRESS AT WORK

FROM PAGE 10

The business has grown to serve thousands of women, offering individual and couples counseling, yoga with baby and prenatal yoga classes, a co-working space and private offices with onsite childcare, breastfeeding and bottle feeding support, prenatal education and parent coaching, and a variety of motherhood groups that discuss various topics each week. Honey also offers consulting services and workshops, some of which are focused on helping mothers return and succeed in the workplace after having a child. And Honey offers corporate consulting to help companies meet those needs. “Honey was created to radically change the paradigm for how moms and moms-to-be treat themselves and one another,” Miller said. “At our core, we are here to provide space — physical, emotional, maternal — for moms to be exactly who they are.” Honey has eight employees and 10 contracted team members. Miller said the business is on track to double revenue by next year. Miller has two daughters, a 7-yearold and a 5-year-old, with her husband of 12 years, Jason. Why did you want to study psychotherapy in college?

When I was in my 20s and living in Los Angeles, I was having a really hard time with what I think are pretty common issues for 20-somethings — anxiety, depression, body image issues and just being confused about who I was in my place in the world. I went to therapy, and I really appreciated the process. It was a light-bulb moment for me. I realized that’s what I wanted to do. I applied for graduate school within that same year and it was a great fit. Did your own experiences as a new mother motivate you to start Honey?

When I became a mom, I was experiencing emotions that I just wasn’t expecting. I was floored that as a psychology major I had never been required to take a class on perinatal health (emotional health before, during and after birth). I know the discomfort, fear and isolation that goes into becoming a mom. It pained me to know there were others that were in that. When I moved to Michigan I was pregnant with my second daughter, and I was looking for support here. I found some things, like prenatal yoga, but I didn’t find the caliber and level of support I was really looking for. That’s why I started Honey. How did you start the business?

I went to a chiropractor in Royal Oak when I was pregnant and saw that she was renting the back room of her office. I rented the space and started small by offering yoga classes and support groups for moms. The chiropractor saw a lot of families who saw my sign on the door and they were curious about Honey. I also reached out to people on social media and told every single person that I came into contact with about Honey. I was all over social media trying to make sure people knew that this existed. We expanded into our Ferndale space after about 10 months. Due to a change in ownership in the chiropractic office, the space was no lon-

HENRY FORD BRINGS CUTTING EDGE TECHNOLOGY TO ROYAL OAK

ALI LAPETINA FOR CRAIN’S

Honey has grown to serve thousands of women, offering individual and couples counseling, yoga with baby and prenatal yoga classes, a co-working space and private offices with onsite childcare, breastfeeding and bottle feeding support, prenatal education and parent coaching, and a variety of motherhood groups that discuss various topics each week.

ger for rent. That felt like the universe pushing me to grow. I received funding from Hebrew Free Loan, which (provides) business startup support through the Jewish Federation. It was a shoestring budget to get things going, but it helped fund our space and I added the co-working element for moms with onsite child care. The moms who come to Honey also knew I was raising money for a possible and hopeful expansion, and I ended up being able to raise more than half the money from them. That was extremely rewarding to me because they believe in it and wanted to be involved on a greater level. I didn’t ever think about us growing out of the chiropractor space. I thought I’d eventually re-open my private practice, but Honey continued to grow and it has become something that I can’t imagine my life without. How did you hire your first employees?

Early on, my team was friends and friends of friends. I’m a therapist, so it was all new to me. I hired some of the wrong people who told me what I wanted to hear and sometimes it didn’t work out. I think I was also afraid of telling people they weren’t the right fit. I hired an HR consultant, Lyndsey Wolfe, who taught me so much about human resources. I learned how to cultivate a team that is aligned with my brand, mission, values and style. I also graduated from the Goldman Sachs 10,000 Small Businesses program about a

“I would offer perinatal mental health training for every single executive and manager in the country. Every time I do a training for higher level executives, they’re blown away and just didn’t realize how simple it is to support and retain talented parents who work in their organization.” Brooke Miller

year ago. With HR consulting and the program, I was able to get better at choosing and training a team, placing expectations on people, and saying no to people who aren’t the right fit. Now I’ve built an incredible team that I am so proud of today. Many of them are moms who came to Honey, experienced the program here, and have been shifted and changed as human beings. What are some of the most common issues that are affecting the mothers you see?

There are many issues, including birth trauma, miscarriages, challenges with breastfeeding, body image and sense of self. Challenges with going back to work is a big one. A lot of people have to go back to work when their baby is very little, and they’re having a hard time with that. It’s emotional and scary. That’s where our corporate consulting came from, which offers parental programming onsite to offices and organizations. We’re supporting mothers to have a voice, speak their needs, get their needs met and take care of themselves and one another. I think that we’re inviting mothers to expect more. One of the spaces that they’re expecting more is from the workplace. We’re also trying to support the workplace in being able to meet those expectations so that they can retain these incredible women in their workforce. If you could make one change to help women in the workplace, what would that be?

I would offer perinatal mental health training for every single executive and manager in the country. Every time I do a training for higher level executives, they’re blown away and just didn’t realize how simple it is to support and retain talented parents who work in their organization. Our culture has somehow made it so complicated. I want to educate our leaders to create space, understanding and wisdom around supporting the human beings that are literally making the human beings in this world. Do you have any advice for new mothers?

Be mindful of anyone who tries to tell you the right way to mother. The only way to mother is the way that feels best in your heart. Surround yourself with people who support you in that.

SPRING 2020 SPECIALIZING IN PRIVATE-PUBLIC PARTNERSHIPS

REAL ESTATE DEVELOPERS | PROPERTY MANAGERS | CONSTRUCTION MANAGERS

FOR MORE INFORMATION VISIT BOJIGROUP.COM

HOW TO TAKE YOUR SMALL BUSINESS

GLOBAL

Michigan has resources and funding to help your small business export its products — whether you are new to exporting or are already exporting and looking to enter new markets. Learn from program administrators and local business leaders about how to navigate international trade.

WHAT •How to connect with global market opportunities. YOU’LL •Financial assistance for marketing your LEARN: product globally. •How international trade can grow your business. •Upcoming 2020 Trade Events

FREE WEBINAR

NOON – 1PM • Wednesday, NOV. 20 Featuring live Q&A with panelists Register today at crainsdetroit.com/globalwebinar FEATURING*

Alyssa Tracey

Director, International Trade, MEDC *additional panelists to be announced soon SPONSORED BY

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

United Road takes on Class 8 truck hauling niche with Drive-Away deal By Kurt Nagl knagl@crain.com

United Road is expanding its vehicle-hauling services with the acquisition of a Kansas-based company that could help increase its market share in a fragmented industry. The Romulus-based new and used car hauler bought Team Drive-Away and its affiliates Driveaway USA and Fr8 Management in a deal finalized at the end of summer, United Road CEO Mark Anderson said. He said the company is working to finish integrating its latest addition. Terms of the deal were not disclosed. United Road is targeting $800 million in revenue this year and projects $900 million in Anderson 2020. Anderson said there are no other acquisitions on the immediate horizon. The deal brings United Road into the niche segment of hauling Class 8 vehicles, or those weighing 33,000 pounds or more, such as semi-trucks, buses and large delivery vehicles. The acquired company will retain its name and headquarters in Olathe, Kan., and its 45 mostly administrative employees and dispatchers will remain, Anderson said. “It all boiled down to diversification, so with this acquisition, not only does it diversify our revenue stream, it diversifies us into a completely different industry,” he said. Team Drive-Away is a nonasset-based provider of logistics services that has a network of more than 500 independent contractors that

UNITED ROAD

United Road’s acquisition of Kansas-based Team Drive-Away gives it the ability to haul heavier trucks.

Need to know

JJUnited Road acquired Kansas-based

Team Drive-Away

JJDeal gives Romulus-based company ability to haul 33,000-pound trucks JJCompany aims to diversify in fragmented industry

haul Class 8 vehicles for the company. Major clients include Walmart, Hub Group, Penske and UPS. Anderson declined to disclose the revenue of Team Drive-Away. Its clients are primarily large transportation companies that prefer using their own drivers to produce revenue and benefit from outsourcing delivery of new trucks from manufacturers. “They’re not going to use their scarce resource of drivers to get their

vehicle from point A to point B in a nonrevenue-producing fashion,” Anderson said. The hauling of heavy trucks is a $3 billion-per-year industry, whereas new and used car hauling amounts to $9 billion, Anderson said. Hauling companies are competing for third-party truck drivers to help capture that revenue amid a shortage of contractors in the industry. United Road rolled out an Uber-esque car hauling platform designed to make it easier for truck drivers to work for the company. Called Haully, the platform went live last month. With the addition of Team DriveAway, the company will move 4 million new, used and Class 8 vehicles in 2019, according to a news release. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

LLamasoft adds AI capability, revenue base with largest acquisition to date By Kurt Nagl knagl@crain.com

LLamasoft Inc. has acquired Chicago-based Opex Analytics LLC in the Ann Arbor company’s largest deal to date, which will bolster its artificial intelligence capabilities and significantly expand its revenue base. The supply chain software supplier finalized the deal Oct. 18, CEO Razat Gaurav said. Terms were not disclosed. The deal increases LLamasoft’s revenue by 20 percent, Gaurav though the company would not give a specific dollar figure. About 150 Opex employees, mostly data scientists in Chicago, Atlanta, Palo Alto, Calif., and India, will be retained. Opex will also keep its name. The acquisition marks the beginning of LLamasoft’s evolution from a supply chain analytics provider to a decision-making platform, Gaurav said. “As we put together our strategy for the future, we took a step back

Need to know

Ann Arbor-based company acquires Chicago-based Opex Analytics J

J Deal will allow LLamasoft to focus on decision-making software J Opex brings 150 employees, expands revenue base by 20 percent

and thought, where do we want to end up in the next three to five years?” he said. “The next phase is enabling an enterprise decisioning platform.” LLamasoft is a subscription-based business whose clients include Ford Motor Co., General Motors Co. and home goods retailer IKEA. The company designs tools to help manufacturers and logistics service companies model and simulate their operations. Opex provides enterprise AI applications that help companies predict business performance and make more profitable decisions. Its clients are mainly Fortune 500 companies that overlap with LLamasoft’s customers. Gaurav said the combined company, which will stay based in Ann Arbor, will build software capable of making large-scale decisions such as

where a company should be sourcing its products or how it should be flowing them through its plants. After the acquisition, LLamasoft has 750 employees around the world, 270 in Ann Arbor. LLamasoft’s last acquisition was four years ago when it bought UKbased Barloworld. Its growth since has been organic. Gaurav said the company’s revenue has grown 30 percent-35 percent year-over-year for the past five years and will see an increase well above that in 2019 because of the acquisition. There are no immediate plans for future takeovers. Gaurav declined to disclose revenue figures. He said last year, when he was named CEO, that the company’s 2017 revenue was around $71.5 million. Don Hicks and Toby Brzoznowski founded LLamasoft in 2004, and it won a record-breaking venture capital investment of $50 million in 2015. The company is now owned by New York City-based Goldman, Sachs & Co., San Francisco-based TPG Capital and Chicago-based MK Capital. The investment firms financed the purchase of Opex. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

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

Inspire BILL BOWEN

Justin Phillips, a farm associate at RecoveryPark, harvests greens from the Detroit nonprofit’s pilot hydroponics growing operation.

Michigan Strategic Fund forgives $750,000 loan to RecoveryPark By Sherri Welch swelch@crain.com

The Michigan Strategic Fund voted last week to forgive a $750,000 loan made to RecoveryPark and the for-profit subsidiary it created to grow produce in Detroit. The loan forgiveness will enable RecoveryPark JV LLC to close $9.25 million in federally backed loans. Once those close, it can move forward on the city’s first commercial-scale hydroponics project . RecoveryPark had gone into deWozniak fault on what was originally a $1 million loan, the state said, as it worked to cover costs of its pilot operations and round up financing to begin larger-scale farming. It had tapped only $750,000 of that loan, CEO Gary Wozniak said.

The loan was set to be forgiven when the farming operation had created 50 jobs, he said. Currently, it employs seven, but plans call for hiring 12-15 people coming out prison or drug recovery programs next summer in preparation for its first hydroponics planting. It will now be forgiven upon closing of the federal loans, Wozniak said. Forgiveness of the loan was a condition of closing a 28-year loan backed by the U.S. Department of Agriculture and U.S. Small Business Administration and a 10-year loan backed by the U.S. Small Business Administration. “It’s a debt ratio issue, how much we are borrowing vs. how much we have to pay out,” Wozniak said. “ ... The state has been working with us and (didn’t) want it to go into default.” If the government-backed loans close in time, RecoveryPark plans to begin erecting the hydroponics greenhouse before year’s end.

aetna.com

Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

Detroit auto show mobility challenge participants named By Dustin Walsh dwalsh@crain.com

Michigan Gov. Gretchen Whitmer announced Tuesday the five corporate mobility challenge participants that will offer autonomous vehicle rides for attendees of the 2020 North American International Auto Show in Detroit in June. The vehicles will travel between TCF Center and destinations around town, including transportation hubs, hotels and restaurants, June 6-21 during the preview and public show weeks. The selected companies are: J Auburn Hills-based Continental Automotive, partnering with EasyMile, Nexteer Automotive, 3M, CNXMotion and Oakland University, will offer a fixed-route shuttle with three automated 15-passenger vans. J France-based Navya, with offices in Saline, is partnering with Wayne State University to provide a fixed-route shuttle with a 15-passenger van focused on accessibility options, including an automated ramp and restraints for paratransit riders. J Russian internet company Yandex and its partner Hyundai Mobis are

YANDEX

Yandex will work with Hyundai Mobis and Lawrence Technological University in Southfield to deploy a fleet of automated robo-taxis.

working with Lawrence Technological University to deploy 10 four-passenger sedans. J Phoenix-based Local Motors is partnering with Ann Arbor-based Robotic Research LLC to deploy two of its self-driving Olli shuttles on a fixed route downtown. J Canada’s AutoGuardian and United Kingdom-based Aurrigo will deploy two 12-passenger electric shuttle buses for the event. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

At McLaren, we’re committed to providing high-quality, effective care. By developing best practices based on clinical outcomes and the latest research on health care quality and safety, we are not only improving outcomes but also lowering costs for patients and hospitals. That’s what it means to be doing what’s best. Learn more at mclaren.org

SPONSORED BY:

CRAIN’S 2019

NOTABLE WOMEN IN LAW

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

Meet Crain’s Notable Women in Law: You want these women on your side. They’ve set legal precedents, relentlessly pursued justice and won big cases for their clients — all while mentoring the next wave of women in law and finding ways to give back.

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

CRAIN’S 2019 NOTABLE WOMEN IN LAW DEBORAH BROUWER

CATHERINE DOBROWITSKY

CHARLENE GLOVER-HOGAN

Partner, Nemeth Law P.C., Detroit

Founder and President, Rivenoak Law Group, P.C., Troy

Attorney, Law Offices of Charlene Glover-Hogan, P.C., Southfield

Part

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

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

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

Mos sity S

Deborah Brouwer joined Nemeth Law in 2004 after more than 20 years as attorney and then General Counsel of the UAW Legal Services Plan. “From day one, Deborah has been a leader in our firm. Attorneys respect her legal and practical perspectives, as well as her calm demeanor. She provides guidance through her excellent legal writing skills, her ability to see an issue from all sides and her words of wisdom and emotional support — all of which help keep our firm colleagues, as well as clients, grounded,” said firm president and founder Patricia Nemeth. Brouwer, who represents employers against allegations of bias, harassment, retaliation and other employee legal disputes, has enjoyed several wins for her clients in recent years. She negotiated a settlement in an emotionally-charged breach of contract lawsuit brought by former CEO against a nonprofit. She also defended a major city in a reverse race discrimination brought by the city’s corporation counsel, who was fired for using a racially derogatory term. Brouwer obtained a summary judgment in that case, then defended that result in the Court of Appeals and U.S. Supreme Court. As chair of the board of directors for Assured Family Services, she led the search for a new CEO. Brouwer also serves as vice chair of the board of trustees and treasurer of the board of directors for the Hannan Foundation.

Catherine Dobrowitsky began her career as a law clerk to the late U.S. District Judge John Feikens and went on to launch a boutique firm that draws renowned corporate and individual clients. She pursues a “Jerry McGuire”-like strategy of providing personalized service in her practice, which focuses on trademark and brand protection, intellectual property licensing and agreement work and litigation. Dobrowitsky counts among her clients singer Gwen Stefani, the family of actor Will Smith, Sprint Corp., Glastender Inc., Detroit City FC and the Detroit Jazz Festival. Dobrowitsky’s notable cases include handling trade secret misappropriation allegations between a tier one auto supplier and a machine builder and managing the licensing and enforcement of 86 brands in more than 30 countries for a medical device manufacturer. She also handled trademark enforcement for Gordie Howe’s estate and foundation, including guiding brand expansion and monitoring the internet for unauthorized use of likeness and marks. “Our companies have been working with Katy since 2011. She did our trademark work in the U.S., Canada, Europe and China, protecting our interests while watching out for our pocketbook. We find her strategic, aggressive (but cautiously so) and prompt with concise answers to our answers and situations,” said Murray Wilson, CEO of Black Stone Sports Inc. In service to her community and industry, Dobrowitsky is a mentor through the Oakland County Bar Association and Michigan Intellectual Property Inn of Court and chairs the board of directors for the Pewabic Society Inc.

Charlene Glover-Hogan was appointed an Oakland County public administrator in 2016 to assist the state public administrator. Glover-Hogan, who is the only African American public administrator in the county, specializes in the estates of persons who did not leave wills and have no known heirs. With her greatest strength being her compassion when dealing with complicated guardianship and conservatorship cases, she takes great care of her elderly and vulnerable clients. “Charlene is a nightmare when it comes to representing her clients. I mean this in the best possible way,” said attorney Drew Carnwath. In recent years, Glover-Hogan successfully handled an $8 million award for a trust case and procured a more than $550,000 award for a client who possessed 90,000 comic books and several original pieces of art. Glover-Hogan also helps youth reach their dreams of becoming attorneys as a mentor for middle and high school students at nonprofit Pretty Brown Girl.

N ing opin

LISA GRETCHKO

STEPHANIE JONES

LINDA KENNEDY

Partner, Howard & Howard Attorneys PLLC, Royal Oak

Lead Counsel – Intellectual Property, General Motors, Detroit

Partner, Intellectual Property, Panagos Kennedy PLLC, Troy

Part

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

Most recent degree earned: Juris Doctor, Syracuse University College of Law

Most recent degree earned: Juris Doctor, University of Minnesota

Mos Law

In 2014, the American Bankruptcy Institute named Lisa Gretchko Committee Member of the Year for her work on ABI’s Unsecured Trade Creditors Committee. In 2018, ABI promoted her to vice president of Publications, chair of its Publications Committee and member of its Executive Committee. “Her leadership and expertise are critical in creating a product that ABI is proud to publish every month. This is no easy task for a volunteer, especially for someone who has a significant and busy practice of her own to manage,” said Amy Alcoke Quackenboss, ABI deputy executive director and general counsel. As a partner with Howard & Howard, Gretchko leads a team handling corporate restructurings, bankruptcies and related litigation. As lead bankruptcy counsel for a linen vendor, she successfully stopped goods in ocean transit from China to a customer that had just filed bankruptcy in Nebraska. The client received payment in full for the goods stopped three days after the lawsuits were filed. Gretchko has also successfully represented a gaming machines manufacturer and a licensor of related intellectual property in casino bankruptcy cases throughout the country. With Chief U.S. Bankruptcy Judge Phillip Shefferly, Gretchko successfully launched an effort to create a regional, bankruptcy moot court competition in Detroit that led up to the Duberstein National Moot Court competition in New York. In February 2019, eight moot court teams representing five law schools participated in the inaugural Detroit Shapero Cup Regional Moot Court Competition, named for retired bankruptcy Judge Walter Shapero, at the U.S. Bankruptcy Court in Detroit.

Stephanie Jones is responsible for intellectual property-related matters regarding General Motor’s autonomous vehicles, connectivity/infotainment, propulsion, research and development and data loss prevention. She negotiates strategic highstakes IP agreements, such as a more than $2 billion investment in GM’s autonomous entity in 2018 and the more than $2 billion divestiture of Opel to France’s PSA Group in 2017. Both deals were monthslong projects that required team members to work long hours. Yet Jones also worked to make them feel supported and engaged. “As an attorney, she is a creative problem solver but also very practical. She keenly understands how to get the best outcomes from various individuals, whether it is during negotiations or from people on her team,” said Jennifer Woodside Wojtala, principal and patent attorney for Harness, Dickey & Pierce PLC. In 2017, Jones, who is on the board of the Women Lawyers Association of Michigan Foundation, developed and piloted GM Women in Action, a yearlong program for female attorneys that provided personal and professional development. Now Jones is leading the development of mentoring programs for all of GM’s worldwide legal staff. At the same time, she serves with the Renaissance (MI) chapter of the Links Inc. Currently, she is supporting a project to install plumbing in a school in Ghana. Jones also dedicates time to the Big Brothers and Big Sisters program.

A registered patent attorney, Linda Kennedy spent much of her career as in-house counsel for Fortune 50 companies, including Dow Chemical and the Pratt & Whitney division of United Technology Corp. She advised the latter on intellectual property-related risk management and government contracts related to auxiliary power units and single-use jet engines. Kennedy knows IP (via patents) can help create exclusivity in the market for new and important technologies while mitigating competitive risks. As a recent partner at Panagos Kennedy, she helped a medical device company deal with adversarial issues related to business contracts and intellectual property. “Linda’s depth in IP, especially in data rights assertions for government contractors, is rare in this region and can truly help companies in the Michigan Defense Corridor protect their future,” said Partner Bill Panagos. As someone who understands the benefits and importance of science, technology, engineering and math literacy for economic independence, Kennedy is working to develop a culture of philanthropy in the legal community. In one pro bono case, for example, she represented an inmate who alleged prison officials violated his First Amendment rights when they gave him extra time in administrative segregation for talking to a reporter from Esquire magazine. Kennedy also serves as chair of the Academic Affairs Committee for Michigan Technological University’s Board of Trustees, a state-appointed position. There, she helps review student success programs in hopes of increasing STEM literacy and the accessibility of STEM careers to women.

star tion dron men men inte K curr fend the K Asso spo Th Boa Klug prop men that

In valu clien

A Gro of th bus K ven Mic her ven zian “S com cou ofte F en’s atto lega

unty min-

Afator eseave With ommplitorher

en it ts. I arn-

n $8 han mic

bestu-

ota

ch of , inn of ctument d to -use

ents) the echpetiPad a with ness

s for ruly otect

ance ecocul-

n inendative ne. omd of view era-

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

ERIN KLUG

LAURIE KOESTER

DEANNA KOSSARAS

Partner, Intellectual Property, Varnum LLP, Novi

Associate General Counsel, Great Lakes Water Authority, Detroit

Most recent education: Juris Doctor, Case Western Reserve University School of Law

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

Intellectual Property Counsel, Harman International Industries Inc., Novi

Nearly four years ago, Varnum tasked Erin Klug with building its intellectual property practice group, in terms of developing clients and building operations. She developed the firm’s IP procedures manual and trained its support staff. “Erin’s knowledge and experience in the IP practice area has provided the firm’s clients with an invaluable resource in their IP needs,” said Varnum Partner Kristen Veresh. Klug’s experience includes handling global patent and trademark matters for medical device companies, tier one auto suppliers and consumer product companies. She helps startup companies protect new developments and innovations in the areas of object detection, biometrics recognition, drone technology and more. She prepares license agreements, clearance opinions, novelty opinions and infringement opinions and assists clients with copyright matters and intellectual property litigation. Klug also manages a large trademark portfolio for a cryptocurrency and entertainment company and has recently defended and settled multiple trademark oppositions before the Trademark Trial and Appeal Board. Katherine Pacynski, president-elect for the Women’s Bar Association, said Klug “is quick to take on any necessary responsibility, and no detail is overlooked.” This is evident in her role as a member of the Executive Board of the Women Lawyers Association of Michigan, where Klug helped develop the Coalition for Impartial Justice, which proposed an amendment to a judicial canon. The amendment mandates that judges not be members of organizations that invidiously discriminate.

Formerly assistant corporation counsel for the city of Detroit, Laurie Koester is responsible for drafting contracts for the Great Lakes Water Authority’s construction, engineering, information technology and professional services and handling negotiations for its 87 wholesale water contracts and 18 wastewater contracts. GLWA provides water and wastewater services to 127 Southeastern Michigan communities. In recent years, Koester and her team negotiated the emergency services that reestablished GLWA as the service provider for drinking water in Flint. She successfully represented the negotiation and facilitation of the highly complex agreement involving the state of Michigan, Detroit, Flint, the Karegnondi Water Authority and the Genesee County Drain Commissioner. The deal provides residents with financial assistance, plumbing repairs and an approximate $1.8 million in annual savings. “Contract negotiations can, at times, be an adversarial process. But Laurie can see things from both sides of the table and develop equitable solutions that work for both GLWA and its member partners,” said Jeff McKeen, General Manager, Southeastern Oakland County Water Authority. In addition, she serves as co-chair of GLWA’s One Water Partnership, a collaborative initiative to build working relationships, resolve issues facing the business and proactively plan for future regional services. In this role, Koester has helped outline the ways in which the partnership works with members.

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

Deanna Kossaras helps Harman International Industries maintain a competitive advantage. She manages more than 1,400 patent assets in 14 technology areas for the company, which designs and engineers connected products for automakers, consumers and other businesses around the world. In doing so, she guides and instructs attorneys at more than 15 outside law firms on the principles of patent prosecutions, technology and product road-mapping, and corporate and global maintenance strategy. She also leads three of Harman’s five Division IP Review Boards, conducts invention harvesting sessions for business clients and supports M&A transactions regarding IP due diligence. “Deanna … likes to push herself to deliver results that meet her personal expectations and the expectations of our internal clients as well as push and challenge our outside counsel partners and third-party vendors to do the same,” said Fred Owens, patent portfolio counsel and senior director of Global Invention and Technology for Harman. Moreover, Kossaras is passionate about advancing minorities in legal and technology fields. As co-lead of the region’s Harman Women’s Network, she helped develop and implement a framework and foundational tools to develop members’ professional and leadership skills. She also sits on the executive board of the Women’s Bar Association, is a state board representative for the Oakland Region of the Women Lawyers Association of Michigan and volunteers with the mock interview program the University of Detroit Mercy School of Law holds for IP candidates.

SARA KRUSE

MARY JO LARSON

Partner, Jaffe Raitt Heuer & Weiss, P.C., Southfield

Partner, Warner Norcross + Judd LLP, Southfield

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

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

In the past five years, Sara Kruse has closed transactions valued at more than $1 billion for Jaffe Raitt Heuer & Weiss clients. Kruse, a mentor for Techstars Detroit participants, has experience in all areas of formation, corporate governance, finance, capital raising, partnerships and collaborations and mergers and acquisitions. Notably, she represented Michigan ridesharing startup SPLT in its 2018 sale to Germany’s Robert Bosch GmbH and defense contractor Quantum Signal in its July acquisition by Ford Motor Company. As chair of Jaffe’s Emerging & Growth Business Practice Group, Kruse works with entrepreneurs at the earliest stages of their ideas and helps them turn those ideas into successful businesses. Kruse advances Michigan’s vibrant entrepreneurial and venture capital community through her leadership on the Michigan Venture Capital Association board of directors and her work assisting entrepreneurs, startup companies and venture investors, said MVCA Executive Director Ara Topouzian. “Sara is a true champion of Michigan’s entrepreneurial community. The entrepreneurial investment community can count on her ability to bring creative solutions to complex, often technical relationships,” Topouzian said. Further, Kruse serves as a member and leader of the Women’s Caucus Group, a collaborative team of more than 55 Jaffe attorneys and paralegals working toward advancing women legal professionals.

Before Mary Jo Larson joined Warner Norcross + Judd, the firm did not have a regional employee benefits practice. Larson, who built the practice, manages pension, 401(k), executive compensation and related governance and fiduciary guidance for numerous corporations, including hospitality and tier one auto companies in general and, specifically, Auto-Owners Insurance, the Dow Chemical Company and PulteGroup. She has led several clients, including a Fortune 500 company, through pension lump sum windows, allowing participants to gain control of their retirement assets and the companies to take participants off their Pension Benefit Guaranty Corporation premiums while simplifying administration. More recently, Larson began overseeing the fiduciary standards for one company that is working on an annuity buy-out that would allow participants to take a lump sum or an annuity from an insurance company. She is helping another company as it changes the unitized stock fund in its 401(k) plan to real-time trading. Moreover, Larson takes time to mentor employee benefit attorneys. “Mary Jo is both selfless and thorough in her development of younger attorneys in the practice, requiring all to be masters of their profession and dedicated to the service of clients. In addition, Mary Jo developed a unique fee structure for clients needing the firm’s EB services which has resulted in a significant increase in both the number of EB clients and in their satisfaction,” said William Jansen, Warner partner and executive partner of the Southfield office.

“Charlene is a nightmare when it comes to representing her clients. I mean this in the best possible way.” — Drew Carnathy, Attorney

“Karen is respected and recognized as a true advocate with a genuine desire and record of raising up and inspiring other women leaders.” — Lea Kapral, General Manager of Central Claims, Acuity

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

CRAIN’S 2019 NOTABLE WOMEN IN LAW CARRIE LEAHY

BILLEE LIGHTVOET WARD

KAREN LUDDEN

Member and Chair Elect, Bodman PLC, Ann Arbor

Of Counsel, Health Care, Dickinson Wright PLLC, Grand Rapids

Shareholder, Insurance Group Chair, Dean & Fulkerson PC, Troy

Most recent degree earned: Juris Doctor, Chicago-Kent College of Law, Illinois Institute of Technology

Most recent degree earned: Juris Doctor, DePaul University College of Law

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

Princ Canfi

Carrie Leahy has taken on considerable new responsibilities in recent years. Her 2017 promotion to managing partner of Bodman’s Ann Arbor office put her in charge of about 35 attorneys and staff. That same year, leadership elected her to Bodman’s Office of the Executive, a group of partners who help the chair guide business strategy and handle policy issues. In January, she will become Bodman chair, leading about 295 attorneys and staff members. Known as a problem solver, Leahy has been a leader in the evolution of merger and acquisition structure that includes using representations and warranties insurance. The insurance provides coverage of breaches of representation or warranty in a purchase agreement and helps accelerate the closure of M&A deals. “Always keeping client goals front and center, and with tremendous strategic skills, precision thinking and creativity, Carrie will drive complex transactions while never letting up on preparation for her next Ironman competition,” said Susan Kornfield, member of Bodman and chair of the firm’s Intellectual Property Practice Group. Leahy is involved in mergers and acquisitions ranging in size from $250,000 to more than $1 billion. Her more recent significant transactions include representing Plymouth Packing, Inc. in its $200 million-plus sale to WestRock Company. She also represented the late Art Van Elslander in the $550 million sale of Art Van Inc. and its affiliates to Thomas Lee Partners LP. Moreover, she negotiated and closed dozens of corporate finance transactions for Sparton Corp. totaling more than $1 billion.

Billee Lightvoet Ward, co-chair of Dickinson Wright’s Academic Institutions and Life Sciences sub-group, is actively involved in the State Bar of Michigan — Health Care Law Section and the Michigan Health and Hospital Association. An expert in the field, she advocates for improving client service and availability in the life science space, specifically in relation to counseling clients through their Food and Drug Administration strategy, compliance and submissions. Lightvoet Ward also lectures and writes about numerous health care related topics, including clinical research, physician peer reviews, HIPAA, e-Discovery, compliance and regulation. She has been lead counsel to a physician practice in its sale of assets to a national health system, counsel to a rural hospital acquired by a large health system and clinical research and regulatory counsel to a cardiac device company. She has also counseled numerous startup medical device makers in FDA product classification, pre-market strategy and post market compliance. Outside of her legal duties, Lightvoet Ward serves the health care community as a member of the institutional review board for Covenant Medical Center and as a member of the board of directors for Community Healing Centers board, where she participates in fundraising events. “Her passion focuses on the sorrow of children who have been broken by childhood sexual abuse. At times, we have turned to Billee with complicated legal questions. She has been able to utilize pro bono information promptly,” said Community Healing Centers CEO Sally Reames.

Since joining Dean & Fulkerson two years ago, Karen Ludden established the firm’s Insurance Coverage and Defense Practice Group and now represents insurance companies in coverage matters and defends corporations in trucking, premises, products and general liabilities, including serious injury cases. She is the immediate past president of the Michigan Chapter of the Federalist Society. “Karen is a tenacious advocate and ferocious negotiator who works tirelessly to obtain the best results for her clients,” said Sarah Brutman, a shareholder and member of Dean & Fulkerson’s Insurance Coverage and Defense Group. Earlier this year, Ludden obtained the first successful declaratory judgment in the nation on behalf of an insurer in the National Prescription Opiate Multi-District Litigation. The judgment ruled that Acuity Insurance, an insurer of opiate distributor Masters Pharmaceutical, was not liable for damages sought against its client. About $25 million was at stake for Acuity. Ludden is also a supporter of women at her firm, funding their participation in legal organizations, mentoring and providing speaking and educational opportunities for them. “Karen is respected and recognized as a true advocate with a genuine desire and record of raising up and inspiring other women leaders. She has championed women throughout her career, impacting the insurance industry and legal community by providing opportunity and challenges which inspire growth, development and exposure. She is a partner and mentor to me as well and has assisted me in growing my own confidence and career over the years,” said Lea Kapral, general manager of Central Claims for Acuity.

Mos

S cal Cha

pos Det In ney who rear case arre ue w arra In mor Clai billi $20 M Can mitt tee, men

Ludense s in rporodding imchiiety. cate orks s for n, a n& and

sful er in ion. opifor as at

ding pro-

with ther her unipire and own ner-

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

SONAL HOPE MITHANI

VALERIE NEWMAN

MIROSLAVA ORDUÑO RINCÓN

Principal, Resident Director and Deputy General Counsel, Miller Canfield, Ann Arbor

Director, Conviction Integrity Unit, Wayne County Prosecutor’s Office, Detroit

Member, Immigration and Nationality Law, Kerr Russell, Detroit

Most recent degree earned: Juris Doctor, Harvard Law School

Most recent degree earned: Juris Doctor, Wayne State University

Soni Mithani, known as an attorney with impeccable ethical standards, is a member of the State Bar of Michigan’s Character and Fitness Committee, where she helps ensure integrity, civility, candor and authenticity among new members of the bar. “Sonal is a brilliant attorney who effortlessly works with Detroit Water and Sewerage Department engineers, financial experts and in-house counsel to develop successful legal strategies. She has a commanding, yet humble presence, municipalities around the state seek out her legal acumen, and she is respected by opposing counsel,” said Debra Pospiech, general counsel for the Detroit Water and Sewerage Department. In recent years, Mithani and a team of Miller Canfield attorneys worked the high-profile case suit brought by customers who received shutoff notices from the DWSD for being in arrears. With just five days’ notice, they successfully made the case in bankruptcy court that DWSD could not stop collecting arrearages, thereby ensuring the city of Detroit could continue with its bankruptcy and residents could make payment arrangements for their water bill obligations. In addition, Mithani successfully defended a client sued for more than $10 million by a “whistleblower” under the False Claims Act. She also served as lead trial counsel defending a billion-dollar construction management company against a $20 million construction claim. Mithani, the first female minority equity partner at Miller Canfield, serves on the firm’s recruiting and diversity committees. When she served on its Women’s Initiative Committee, she led the charge in making compensation and advancement fairer.

Prior to her current role, Valerie Newman was lead for the Juvenile Lifer Unit, where she and her team concentrated on helping clients who received life sentences for first-degree murder convictions before they turned 18 get new, fair sentences. In 2016, Newman’s efforts resulted in client Davontae Sanford’s exoneration and release from prison. Sanford was 14 years old when he falsely confessed to murders that a hit man confessed to just weeks later. Police and original prosecutors ignored the hitman’s confession, and Sanford went to prison. In 2018, her work led to the exoneration of Richard Phillips, who served 47 years in prison for a murder and robbery he did not commit. In the past two years, Newman created the Conviction Integrity Unity from the ground up, writing policies, establishing best practices and developing alliances in the criminal justice community. Now she is helping the director of the Attorney General’s Office CIU set up her group. “She’s one of those lawyers you know can get the ‘rabbit out of a hat’ result and goes out of her way to cut bureaucracies and barriers for her clients. We’re lucky to have this caliber of lawyer in Michigan fighting for integrity in our criminal justice system,” said Heidi Naasko, pro bono and Diversity counsel at Dykema Gossett PLLC. The Supreme Court recently appointed Valerie Newman to the State Bar Board of Commissioners, which made her cochair of the Access to Justice Committee.

Lisa S. Gretchko Howard & Howar ard d is pro roud to congratulate Lisa S. Gretchko on her selection to Crain’s 2019 Not otab able le Wom o en in Law. A seasoned bankrup uptc tcy y an and cr c editors’ rights attorney, Lisa has represented nearly eve very ry con onstituency in bankruptcy courts locally and around the country. Sh She e is als lso o ac acti t vely involved in the community y through the Michigan Aut utis ism m Pa Part rtners r hip’ p s PLAY Y Pro roje ject c and nd sup uppo port rtss Affirmations, which serves De Detr troi oit’ t’ss L. L.G. G.B. B.T. T.Q.+ + co comm mmun unit ity. y.

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

Miroslava Orduño Rincón equally prizes corporate clients and those in need of pro bono legal services. She volunteers with the Michigan Immigrant Rights Center and is a member of the American Bar Association and Hispanic Bar Association of Michigan. For Kerr Russell, Orduño Rincón assists employers with immigration issues, including the international movement of personnel, family immigration, outbound business visitors and the immigration of physicians educated in the U.S. She also educates employers, community groups and students regarding immigration law and related compliance issues. Orduño Rincón manages the immigration-related considerations for foreign nationals employed by automotive OEMs and aerospace clients. She provided extensive immigration-related assistance to a client that was acquiring a company’s operations for $1.6 billion and another client involved in a $6.5 billion spin-off. “Miroslava is a dedicated professional that considers every angle and addresses multiple viewpoints for every immigration puzzle I bring to her,” said Emily Rosenzweig, human resources manager for Global Mobility (Americas) at Joyson Safety Systems.

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

CRAIN’S 2019 NOTABLE WOMEN IN LAW WENDY POTTS

KAREN SEDER

JANA SIMMONS

Arbitrator and Mediator, Retired Judge, JAMS, Detroit

Partner, Liss, Seder & Andrews P.C., Bloomfield Hills

Of Counsel, Wilson Elser Moskowitz Edelman & Dicker LLP, Livonia

Mem

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

Most recent degree earned: Master of Jurisprudence in Federal Indian Law, University of Tulsa College of Law

Mos Law

Wendy Potts served as a trial judge for Oakland County Probate Court and magistrate in the 48th District Court before becoming an arbitrator and mediator for JAMS (formerly Judicial Arbitration and Mediation Services). “During her tenure, Judge Potts served three terms as chief judge. Realizing there was a crisis in pretrial jail populations, Judge Potts formed a coalition that developed and helped pass legislation reducing overcrowding. The Michigan Supreme Court recognized her talents by appointing her as one of the first two judges to serve on the Oakland County Business Court in 2013,” said Oakland County Circuit Court Judge James Alexander. She also was instrumental in creating the Judge On-Line program which allows litigants to be heard before a judge by telephone. In the last few years, Potts presided over a family dispute over a $100 million-dollar art collection and handled a significant class action dispute between employees of the city of Livonia and Chemical Bank. Potts also is founder of the RESTORE Foundation, a nonprofit dedicated to privately funding Oakland County’s Drug Treatment Courts. The foundation’s mission is to help nonviolent program participants overcome substance abuse issues and restore their lives by alleviating the court program’s dependence on state and federal grants.

Listed this year as one of U.S. News & World Report’s Best Lawyers, Karen Seder is responsible for the multimillion-dollar daily operations at Liss, Seder & Andrews in addition to handling a caseload that includes catastrophic injury claims. “Karen is a crutch that most of her clients lean upon,” said firm founder, Arthur Liss. “She is the support that enables them to continue to fight when their energy is depleted. She is the inspiration that provides hope for the future. She is steadfast in her resolve to provide our clients with the best services and friendship that we can provide.” Seder is a member of the Michigan Association for Justice and the Brain Injury Association of Michigan. She is known as a tireless client advocate who consults medical professionals to ensure they have access to the best resources for their care. In 2018, Seder was responsible for successfully resolving nine cases of more than $1 million each, representing a recovery of more than $18 million. Most were first-party no-fault cases that involved securing fair and reasonable benefits for attendant care for auto accident survivors. That same year, she was integral to the firm filing a motion that intervened in Detroit Mayor Mike Duggan’s no-fault insurance lawsuit. In June, legislators signed sweeping changes to Michigan’s No-Fault Act. Now, Seder is helping with the firm’s clients understand how the changes will impact them.

Jana Simmons joined Wilson Elser Moskowitz Edelman & Dicker in 2016 to build its Native Nations practice group where she helps tribal governments and businesses navigate governmental and commercial dealings to reduce liability, limit risk and bolster long-term inter-tribal and off-reservation business relationships. She also handles complex civil litigation defending individuals and businesses involved in personal injury, premises, construction and environmental lawsuits. In recent years, she helped one tribal council review issues surrounding a personnel complaint within a development company and helped another tribe revise laws that would streamline and enhance its election process. “She was instrumental in warmly welcoming tribal judges — including me — to Defense Trial Counsel’s Meet the Judges event, which hosts attorneys and federal, state and tribal judges across the state,” said Allie Greenleaf Maldonado, chief judge for Little Traverse Bay Bands of Odawa Indians. “Since she spearheaded this effort, more legal organizations in Michigan are now including tribal judges in similar events.” Further, Simmons is chair of the Disciplinary Subcommittee for the State Board of Counseling, a member of the Federal Indian Law advisory board for Law360, advisory board member of the Native American Cannabis Association and founder of the Native Nations Law Task Force at DRI, a membership organization for defense attorneys and in-house counsel.

A inte ilies

Congratulations, Erin Klug!

Mary Jo Larson

(PSOR\HH %HQHƮWV $WWRUQH\ DQG 3DUWQHU

Congratulations on your

Contact Erin Klug at emklug@varnumlaw.com

Recognized by Crain’s Detroit as one of the ‘Notable Women Lawyers’

Domestic and international intellectual property strategy development Patent, trademark and copyright procurement for companies and entrepreneurs Mechanical and electrical arts focus with experience in automotive, medical devices, consumer goods, mobile applications and sensor technology 2019

Metropolitan Ranking Intellectual Property

well-deserved recognition as a 2019 Notable Women Lawyers in Michigan. Learn more about Mary

Jo Larson’s practice as an

H[FHSWLRQDO HPSOR\HH EHQHƮWV attorney at wnj.com.

Dep E-1/ proc F and fairs to th ing i “S skill and the trus Bord In stra clien bus repr prec

n& oup gate ealand and ioncivil and njunvi-

one suraint e repro-

dges dges ibal hief nce s in s.” mitderoard and emouse

SUZANNE SUKKAR

DEBORAH (BEA) SWEDLOW

Member, Immigration, Dickinson Wright PLLC, Ann Arbor

Partner; Member Board of Directors; Co-Leader, Intellectual Property Litigation, Honigman LLP, Ann Arbor

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

As an immigration attorney, Suzanne Sukkar operates at the intersection of the personal — the lives of individuals and families that depend on the successful resolution of immigration decisions — and the professional — the talent resources of companies. A skilled troubleshooter, Sukkar’s practice focuses on global workforce mobility, employment-based sponsorship and visa matters, and immigration audit and compliance for corporate and individual clients that she represents before the Department of Homeland Security, United States Citizenship and Immigration Services, Department of State and Department of Labor. She also developed a niche expertise in E-1/E-2 (treaty trader/investor) visa applications, consular processing and startup ventures. Former Gov. Rick Snyder appointed Sukkar commissioner and secretary of Michigan’s Commission on Middle Eastern Affairs, which monitors, evaluates and provides recommendations to the governor and Michigan Department of Civil Rights regarding issues facing the Middle-Eastern American Community. “Suzanne … provides our clients with premier technical skills, elite service, an understanding of our clients’ business and how to achieve their objectives. She immediately fosters the most important element of any client relationship — trust,” said Daniel Ujczo, chair of Dickinson Wright’s Cross Border Practice Group. In the past two years, Sukkar formulated a workaround strategy for work visas and successfully helped an agricultural client, who had invested more than $100 million to set up a business, overcome false criminal allegations. Sukkar also represented a multi-million-dollar gaming enterprise in a precedent-setting immigration matter.

ABOUT THIS PROGRAM The women featured in this Notable Women in Law 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.

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

Bea Swedlow, a master for the Michigan IP Inn of Court, oversees more than 40 attorneys and employees as co-managing partner of Honigman’s Ann Arbor office and 26 attorneys as co-leader of the firm’s IP litigation practice group. “Bea Swedlow is a talented attorney who has made a significant impact on our growing intellectual property litigation practice,” said Jonathan O’Brien, chair of Honigman’s Intellectual Property Department, who hired Swedlow in 2010. Recent highlights of Swedlow’s career include her success representing a client before the U.S. Trademark Trial and Appeal Board; obtaining a favorable outcome for a national fraternity in a trademark asserted against an international apparel company; and securing a dismissal of a patent case against a major consumer goods product company. Swedlow is a mentor, advocate and teacher who works with junior attorneys and other colleagues to help them reach their full potential, personally and professionally. She has also helped raise the profile of several women in the firm and helped them obtain key projects and assignments to build their careers. As such, her firm named her one its 2018 Mentors of the Year. In addition, she serves on the Board of Directors of the American Intellectual Property Law Association’s. “Bea has led our Women in IP Committee to new heights and has helped many with their careers through our programming and leadership,” said AIPLA Executive Director Lisa Jorgenson.

Notable Women in Law 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.

“She’s one of those lawyers you know can get the ‘rabbit out of a hat’ result and goes out of her way to cut bureaucracies and barriers for her clients.” — Heidi Naasko, Pro Bono and Diversity Council, Dykema Gossett PLC

“(Sonal) has a commanding, yet humble presence, municipalities around the state seek out her legal acumen, and she is respected by opposing counsel.” — Debra Pospiech, General Counsel, Detroit Water and Sewerage Department

20s TITLE SPONSOR

40s TITLE SPONSOR

A celebratory evening for young professionals who are making lasting marks on communities and organizations across the region.

NOV.21 | 6–9:30 PM

MAJOR SPONSORS

LOCATION SPONSOR

PRINT SPONSOR

f ic

to our partner

Sara Kruse SOUTHFIELD • DETROIT • ANN ARBOR • NAPLES w w w.jaf felaw.com

on being honored as a Crain’s Notable Women in the Law 2019. We applaud your leadership and your commitment to your clients, our firm and the community.

PROMOTIONAL PARTNERS

ia l

pr in

Cr a in ’s De t r o it b u s in e s t er o f

sE ve

n ts

Congratulations

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

34 w.g 3.0 reko printing.com • 734.45

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

Partnership to recruit companies in industry and talent clusters By Sherri Welch swelch@crain.com

Norman A. Yatooma ATTORNEY AT LAW

• • •

NYA won MI’s largest judgment in 2018. NYA won MI’s largest legal malpractice judgment of all time. NYA won the largest franchise settlement in MI’s history.

For Help Minding Your Own Business, Contact Us for a Free Consultation. (248) 481-2000 | normanyatooma.com Sources: Thompson Reuters Westlaw Edge Case Evaluator Report for Largest Legal Awards and Lexis Nexis Settlement and Verdict Analyzer

From dedication to innovation in the practice of law... Celebrating 50 years and looking forward to 50 more!

5 1969 2019

Kitch Attorneys & Counselors www.kitch.com

The Detroit Regional Partnership has firmed up the types of industries it will target as it moves full force into marketing and recruitment efforts in the coming year. They’re based on the region’s existing strengths, rather than on aspirations. Not surprisingly, several focus on key strengths developed to serve the automotive industry. But one highlights a lesser-known strength that touches on the automotive industry but extends well beyond: research, engineering and design. Southeast Michigan is home to the greatest concentration of engineering talent in the U.S. and ranks third in the country behind New York and Los Angeles for design talent and fourth for R&D talent, according to studies commissioned by DRP. Only a small percentage of the design is tied to automotive, said Barry Matherly, CEO of the regional economic Matherly development group. But having that type of presence, combined with the region’s strength in engineering and manufacturing, becomes a huge selling point for the region, he said. A lot of companies differentiate based on design, he said. “If you can do the research ... engineering ... (and) design and make it in the same area ... it becomes an even stronger value proposition” for the region.

Cluster strategy DRP’s strategy of targeting specific industries that can benefit from existing strengths and company presence is aimed at being proactive “on who we want here and who we think would be the best fit and who we should be able to legitimately get here,” Matherly said. “We have limited resources (and) a need to quickly get people jobs. We’ve got to go after the highest hit that’s most likely to ramp up this economy.” DRP developed its cluster strategy based on existing company presence and talent strength in the region, identifying the types of companies that could build on that presence or use the skills and expertise developed in them. At the same time, in line with its credo of “jobs for all,” it looked for opportunities not only for college graduates but for “pathway jobs” that don’t require a degree but provide opportunities to move into positions with higher pay and benefits. It worked with consultants including McKinsey & Co. and the Washington, D.C.-based Brookings Metropolitan Policy Program in developing the industry clusters it will recruit. Each has shown growth in the past five years and has a talent pipeline, with thousands of new graduates across the fields coming out of area colleges and universities each year. Laid out on DRP’s website, the first

GETTY IMAGES/ISTOCKPHOTO

Financial services or credit and insurance, fintech and banking is one of the clusters of companies with significant presence in the region.

Need to know

JJAbout half are tied to strengths

developed in automotive industry

cent,” he said, and projections continue to show Southeast Michigan outpacing Chicago in that growth.

JJLesser-known strength in research, engineering and design beyond auto is selling point for region

Research, engineering, design

JJManufacturing areas build on strengths, provide jobs with opportunities for people without degrees

While those six product- and service-based clusters are based on the types of companies we currently have in the region, the seventh cluster, research, engineering and design, is based on the level of talent the area has in those areas and isn’t associated with specific types of companies, Matherly said. Southeast Michigan is home to 97,111 people working in research, engineering and design, according to DRP, and the region confers just under 10,000 degrees in those fields each year. Detroit — home to the College for Creative Studies, which cultivates up-and-coming talent to design everything from cars to boats to purses — is also the only UNESCO city of design in the U.S. “If you are a design company, did you know Detroit is where the talent is?” Matherly said. “You’re probably already saying (you) need to be in New York ... and L.A. But did you know you needed to be in Detroit?” Some might think those designers are all designing cars, he said, but just 4 percent are in the auto industry. Over time, the industry has diversified into other areas like nonautomotive product design, graphic design and home and commercial interior design. At the same time, the region also has an impressive presence in R&D and is home to the University of Michigan, one of the top research universities in the country, Matherly said. “We want to capture that pipeline of workers,” Matherly said, rather than have them leave for places like Silicon Valley. “People want to go where they have an opportunity for advancement ... (where) they have opportunities and ... could start their own company some day, (because) there’s an ecosystem for that,” he said. For their part, companies now realize that the more businesses and talent a region attracts, the more the industry and region grows, Matherly said.

three clusters are tied to auto and industrial production. They include: mobility and automotive (mobility technology and automotive manufacturing); logistics (transportation, warehousing and wholesale); and smart manufacturing, which applies technologies developed for automotive uses and applies them to other industries like robotics, food and beverage production and defense and custom product manufacturing to diversify suppliers’ customer base. Three other clusters of companies with significant presence in the region are more office-related, Matherly said. They are: J Digital technology, which includes software development and programming, data processing and storage and systems design. J Financial services or credit and insurance, fintech and banking. J Corporate and professional services, including: back-office support like accounting, sales, marketing, legal and nonfinancial services, and call centers As a cluster, corporate and professional services employs 216,593 people, surpassing 172,060 in mobility and automotive, according to DRP. Headquarters operations for the automotive companies and others like Masco Corp. and Quicken Loans, along with the back-office or middle-office operations for accounting or customer service here for out-ofstate companies like Ally Financial, PricewaterhouseCoopers LLP and UHY LLP are fueling those numbers, Matherly said. Most of the time, people think of Chicago as the midwestern leader in corporate and professional services, he said. But there are lower rents in metro Detroit, and the growth rate of local companies in that cluster over the past five years has been nearly four times Chicago’s. The five-year growth of the cluster in Chicago was 3 percent, Matherly said. “In this region, it’s grown 11 per-

Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

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

DEALS & DETAILS

SPOTLIGHT

EXPANSIONS

Kar’s Nuts hires candy, snack industry veteran as new CEO

JJInteva Products LLC, Troy, an automotive supplier of engineered components and systems, has an agreement with Suzhou Greentech Material Co. Ltd., Taicang City, China, an automotive interiors research and development and production firm, through which Greentech will produce Inteva’s Inteather, an automotive interior material, for the China automotive market. Websites: intevaproducts. com, rgecosz.com JJAmerican Axle & Manufacturing Inc., Detroit, manufacturer of automotive driveline systems and components, opened a new manufacturing facility in the industrial area of Viladecans, Spain, just outside Barcelona. The new facility will supply vibration control and damper products for new and current European customers including Renault, BMW, Daimler, Porsche, Audi and Ford. Website: aam.com

MERGERS & ACQUISITIONS JJTestek LLC, Wixom, and Avtron Aerospace, Independence, Ohio, aerospace test equipment companies, will now conduct business under one name and one brand as Testek Solutions. The two joined in December 2016 and have shared operations but have maintained both brands. Website: testek.com JJDetroit-based private equity firm Huron Capital Partners LLC’s fire detection and integrated solutions ExecFactor platform, Sciens Building Solutions LLC, has acquired SmartWatch Security & Sound LLC, Mount

Dora, Fla., a fire, security and sound firm. Websites: huroncapital.com, sciensbuildingsolutions.com, smartwatchcentral.com

NEW PRODUCTS JJMeritor Inc., Troy, supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets, launched ProTec series 3000 front and rear all-wheel drive beam axles for Class 5 vehicle applications, such as tactical, fire, rescue and utility vehicles. Website: meritor.com

NEW SERVICES JJArborMetrix Inc., Ann Arbor, a health care data analytics software company, has been selected by the American Academy of Physical Medicine and Rehabilitation, Rosemont, Ill., a medical specialty society, as its partner for a physiatry clinical data registry to collect clinician and patient data across independent physician practices and larger institutions to inform best practices, guide pioneering research and improve care provided to patients. Websites: arbormetrix.com, aapmr.org JJThe University of Michigan, Ann Arbor, has partnered with Data Skrive, Seattle, a technology platform, to provide Wolverines’ fans with game recaps for many of the university’s athletic teams, including men’s basketball, women’s basketball, baseball, softball, women’s volleyball, and track and field. Websites: umich.edu, dataskrive.com

Submit Deals & Details items to cdbdepartments@crain.com

CALENDAR WEDNESDAY, OCT. 30 The Business of Cannabis: Impact and Opportunities. 8-11 a.m. Oct. 30. Detroit Regional Chamber. Program will discuss how cannabis legalization can affect a business, the new business opportunities in the industry and how to be at the forefront of changes that may impact the bottom line. Detroit Golf Club. $75. Contact: Maggie Greaney, email: mgreaney@detroitchamber. com; phone: (313) 596-0482.

UPCOMING EVENTS Integr8 — The Industry 4.0 conference. 7:30 a.m.-6 p.m. Nov. 6. Automation Alley. Integr8 is a conference focused on the eight core smart technologies of the Fourth Industrial Revolution: Internet of Things, Big Data, Robotics, Artificial Intelligence, The Cloud, Cybersecurity, Additive Manufacturing and Advanced Materials and Modeling, Simulation, Visualization and Immersion. Event will include Industry 4.0 roundtables in addition to breakout sessions; national and international keynote speakers and panelists offering insights on how to capitalize on the rapid transformation of global manufacturing while ensuring the workforce is prepared for the changing job landscape. The Smart Technology Expo will high-

light the technology options available to facilitate the digital transformation. TCF Center, Detroit. $449 members; $599 nonmembers. Contact: Cathy Steiner, email: info@automationalley.com; phone: (248) 457-3200. Professional Edge Workshop. 8-9:30 a.m. Nov. 7. Birmingham Bloomfield Chamber. The Professional Edge Workshop will focus on “Communicating Your Business in a 2020 World.” Session will provide an overview on traditional and new communications tools and guidance on how to share an organization’s story effectively to help advance business objectives. Birmingham Public Schools, 31301 Evergreen Road, Beverly Hills. Free. Contact: Kelly Bennett, email: kellyb@bbcc.com; phone: (248) 4307688. The Importance of Diversity in the Growth of Your Business. 11:30 a.m.-1:30 p.m. Nov. 7. Washtenaw Economic Club. Marlin Williams, assistant vice president, Economic Development at Wayne State University, will talk about how diversity programs are creating environments that foster competitive advantage, innovation and economic advancement. Morris Lawrence Building, Ann Arbor. $77.50. Website: wec.wccnet.edu

Kar Nut Products Co. is bringing in a new CEO who comes from 17 years with Mars Wrigley Confectionery, maker of everything from Snickers candy bars to Orbit gum. Victor Mehren, 48, joins the Madison Heightsbased trail mix manufacturer as Nick Nicolay, 64, president and CEO since 1995, transitions to the less labor-intensive role of chairman. Mehren started Oct. 21. Mehren The 86-year-old Kar’s Nuts brings on a new leader amid an eventful couple years: It sold a majority stake to private-equity fund Palladium Equity Partners LLC

in 2017 and then bought local chocolate and caramel icon Sanders late last year. Mehren anticipates speeding up product innovation at Kar’s. In his new role, he presides over Kar’s and Sanders and reports to the board of directors, of which Nicolay is now chairman. The Sanders brand has its own president, Bill Elam, who reports to Mehren. Elam replaced Sanders’ leader, Brian Jefferson, who said around time of the sale that he planned to eventually retire. The son of longtime Kar’s leader Bud Nicolay is stepping back, though he said he sees the process more as “transitioning” than “retiring.” He said he hasn’t decided what’s next for him, and that he and Palladium made the decision together. “It was just time for the next generation of leadership for the organization,” Nicolay said. “It’s grown, gotten

EMPOWERING, E P PASSIONATE, I INNOVATIVE L LEADER. Karmanos Cancer Institute congratulates Elisabeth I. Heath, M.D., FACP, for being recognized among Crain’s 2019 Health Care Heroes. We’re honored to have Dr. Heath among our exceptional team of cancer experts. A compassionate physician, a driven researcher and a trailblazer who engages survivors to help direct the future of cancer research. To us, you’ll always be a hero.

PROUD TO BE A PART OF MCLAREN

much larger. It’s time to bring someone in who has a stronger consumer packaged-goods background. (Mehren’s) background with Mars and Wrigley is tremendous for our organization at this time. “I’ve been here for 35 years, and I think every organization is in need of new learnings, a fresh set of eyes and legs, and I think we’re at a phase now that we need to take (on) some larger, organizational skill sets that (Mehren) brings.” Mehren was most recently Mars Wrigley Confectionery U.S.’s chief operating officer and led integration of the newly merged Mars and Wrigley business units, according to a news release. Before that he was general manager of Wrigley, general manager of Mars Ice Cream & Substantial Snacks and general manager of Mars Chocolate Canada. Before that he worked for Wrigley and PowerBar.

SPONSORED BY:

elements that would essentially wipe out an industry of some 15,000 individuals in postacute rehabilitation and drastically affect some 18,000 people currently in the no-fault system. We’re working with the legislature and the governor to correct some of these issues. You might say, “Why are you focused on such a small group?” That’s not a small group. Imagine telling a nearcapacity crowd at Little Caesars Arena that their benefits have been cut off. Burns: The Children’s Foundation recently made a grant to the Brain Injury Association of Michigan. Tell us what’s going to happen. Constand: The sad fact is 80 percent of head injuries related to bicycling could be prevented simply by wearing a helmet. Juxtapose that with the fact that less than 50 percent of kids and adults actually wear the helmet that they purchased. Think Ahead is an incentive program that addresses the need for kids to wear their helmet for individual recreational activities like skiing, snowboarding, skateboarding and bicycling. We’re launching this in December for ski season, working with the ski resorts across the state to reward and incentivize kids for wearing their helmet on the slopes. Burns: Where do you see the organization going? Constand: Our vision for the next three to five years is to gather a community and create a new landscape for coverage and for access to treatment for those with brain injuries.

Sherry McRill, President and CEO, Northeast Guidance Center and Wayne Bradley, Sr., President and CEO, Detroit Community Health Connection

Larry Burns: Sherry, you were recently appointed as the cochair of the Michigan Behavioral Health and Wellness Collaboration. Sherry McRill: This collaboration is made up of the 16 largest community mental health public organizations in Wayne County. We do advocacy on behalf of our public mental health system, to promote anti-stigma views and to provide education. We work together to try to make sure that children get the best integrated healthcare available. Burns: Wayne, what are your organization’s priorities? Wayne Bradley, Sr.: Detroit Community Health Connection is a federally qualified health center and that means that we have to provide internal medicine, pediatrics and OB/GYN services. To be a federally qualified health center you have to submit and have approved a grant which is funded by the Health Resources & Services Administration Bureau of Primary Care. The mission of the Bureau of Primary Care is to provide services to people who may not have all the means necessary to get primary care. We also have services like social workers who will help us guide

people. We try to have positive relationships with substance abuse organizations and to partner with all of the organizations that serve the population we are responsible for. Our mission has been directed toward the Medicaid population. We try not to turn anybody away. Burns: How are the two of you working together? McRill: We’re looking at the integrated care model. It is a one-stop shopping operation, so patients can come and get both their behavioral healthcare and their physical healthcare including school physicals, well checks or a flu shot. The Regional Federally Qualified Health Center offers a dental program which is a great need for our population. The main educational message is that we’re coordinating care. Burns: Tell us about your work with the Detroit Police Department. McRill: We do training with the Detroit Police Department on mental health wellness and issues so that they can help people on the street. We have a grant through our funding source and we do ride-alongs with the police. We can do interventions and connect people to the services they need.

Dennis Liegghio, Founder, KnowResolve

Larry Burns: Tell us your story. Dennis Liegghio: I was 14 when I lost my dad to suicide and our last words were said in anger. We got into a fight and I said, “I hate you. I never want to see you again.” Over the next couple of months he tried to make amends but I was standing my ground. We never talked again—that was the last thing that I ever said to him. I felt like my childhood was gone overnight. I became very angry, and I blamed myself for many, many years for his death because of what I said and never got the chance to make amends. Burns: You used music to channel your pain and that led you to the creation of KnowResolve. Liegghio: Music was my way out; I credit it in a very real way for saving my life. I started KnowResolve in 2007 in memory of my dad. The idea was to raise awareness in our Macomb County community. We organized an event called Breaking the Silence and had 500 people come out the first year. I started getting calls from local counselors and schools asking me to talk to kids. I was not a mental health professional and I told

them that. The counselor at the first school said, “Just tell your story, speak from the heart—the kids will love it.” Within two years I was getting so many speaking requests that we became a 501(c)(3) organization and started doing our own fundraising and hosting our own events. I was talking to 12,000 kids every year. Burns: Tell us about The SHED. Liegghio: The SHED is our after-school activity center for teens. I got a group of kids together who had been through mental health challenges and we started brainstorming. We started raising money and three years later we signed a lease on a building. Now we’re open. Burns: What stands out when you talk to kids? Liegghio: The level of pressure they feel by ninth grade to have their life figured out. Additionally, the level of anxiety that they’re living with because we’re connected to electronic devices 24/7. I think it’s desensitizing because there’s so much bad news. On the flip side of that coin, they are longing to connect with us and with each other. Burns: Tell us about the November 16 event. Liegghio: Our 13th Annual Breaking the Silence Benefit for Suicide Prevention and Awareness is at The Mirage banquet hall in Clinton Township, with dinner, drinks, dancing and live music. For more information or to purchase tickets, visit knowresolve.org.

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

Cory Roberts, Steve Johnson, Shae Palentaro, Kristin Stewart, Lynette Roberts, Charles Ross and Nigel Douglas pose for a photo earlier this year at Michigan Cannabis Chefs’ first event.

MARIJUANA FROM PAGE 1

While marijuana is legal, the rules for the business of pot are still taking shape. More than half of Michigan’s communities have opted out of allowing recreational marijuana businesses. For some officials in Detroit who are considering a temporary opt-out, the trepidation comes from a concern over equality. City Council is expected to vote Tuesday whether to opt out until it has its own rules in place. Councilman James Tate is leading an effort to draft the city’s version of a social equity program that would benefit residents looking to open recreational marijuana businesses. “The main thing is ensuring that Detroiters have the opportunity to have a significant representation in this new industry,” Tate said. “What you see is the (medical marijuana) industry in the city of Detroit overwhelmingly being run by those who don’t live in the city of Detroit.”

Program origins Unlike the legalization of medical marijuana, the passage of legal recreational weed mandated the state to create a social equity program and allowed cities to do the same. The state was required to develop a “plan to promote and encourage participation in the marijuana industry by people from communities that have been disproportionately impacted by marijuana prohibition and enforcement and to positively impact those communities,” according to the legislation. Exactly what that looked like was up to regulators. The Marijuana Regulatory Agency formed its program after months of community outreach and consulting with other states such as California and Colorado that have charted similar territory, LARA spokesman David Harns said. “We feel like we’ve put together a plan that won’t just fulfill a mandate at a minimum but will hopefully fulfill the spirit of the mandate as well,” he said. There are six recreational marijua-

na licenses available to Michigan residents that do not also require a medical marijuana license. They are: J Grower Class A: Allows holders to grow up to 100 plants; initial fee $4,000. J Microbusiness: Allows holder to grow up to 150 plants and sell or transfer marijuana to individuals 21 years and older or to a marijuana safety compliance facility; initial fee $8,000. J Safety Compliance Facility: Allows holder to test marijuana for potency and contaminants; initial fee $25,000. J Marijuana Event Organizer: A license allowing a person to apply to host a temporary marijuana event; initial fee $1,000. J Temporary Marijuana Event: Allows a marijuana event organizer to host an event with onsite sale or consumption of marijuana; license fee is $500 per day plus $500 per licensee authorized to sell at the event. J Designated Consumption Establishment: Allows holder to operate a commercial space permitting individuals 21 years and older to consume marijuana on premises; initial fee of $1,000. Additionally, five recreational licenses also require applicants to have medical marijuana licenses. Those licenses are: Processor ($40,000 fee), Retailer ($25,000 fee), Secure Transporter ($25,000 fee), Class B Grower (up to 500 plants; $8,000 fee) and Class C Grower (up to 2,000 plants; $40,000 fee). Harns said those already with medical marijuana licenses will be issued recreational licenses first because those applicants have already been vetted by the state. Medical and recreational marijuana will be separately regulated and sold. In total, the state’s yearly budget for regulating both categories is around $22 million. The state’s social equity program offers three types of discounts for recreational marijuana business licenses, including those that require medical marijuana licenses. Those eligible for all three could receive up to 60 percent off fees for each license they apply for. The discounts are: J 25 percent for those who have lived in an impacted community for the past five years. Designated communi-

“The main thing is ensuring that Detroiters have the opportunity to have a significant representation in this new industry.” — Detroit Councilman James Tate

ties, listed on the Michigan Regulatory Agency’s website, are located throughout the state from Detroit and Flint to Kalamazoo and Muskegon. J 25 percent for business owners with marijuana-related convictions. J 10 percent for those who have been registered primary caregivers for medical marijuana for at least two years between 2008 and 2017. The only factor that automatically disqualifies a person from applying for the social equity program is a conviction for distributing a controlled substance to a minor. Being eligible does not necessarily mean an applicant will be approved for a license, Harns said. “We walk them through the process, and then they’re treated like any other applicant,” he said. Applications are reviewed by a team of 15 people from the Marijuana Regulatory Agency. It considers applicants based on their “integrity, moral character and reputation; personal and business probity; financial ability and experience,” according to its website. The applicant’s criminal history is also a factor, with approval or denial on a case-by-case basis, Harns said.

Upcoming social equity info sessions J Nov. 2 at 11 a.m.; Inkster — Booker T. Dozier Recreation Complex, 2025 Middlebelt Road J Nov. 4 at 11 a.m.; Detroit — Conley Library, 4600 Martin St. J Nov. 12 at 1 p.m.; Ypsilanti Automotive Heritage Museum, 100 East Cross St. J Nov. 13 at 10 a.m.; Pontiac — Ruth Peterson Community Center, 990 Joslyn Road J Nov. 18 at 10 a.m.; Flint — Berston Field House, 3300 N. Saginaw St.

Question of inclusion Roberts’ business Michigan Cannabis Chefs LLC is making a name for itself on the west side of the state with a cannabis fine-dining popup launched earlier this year when recreational legalization took effect. The man behind the weed-infused recipes for triple cheddar truffle mac and cheese and crab cakes is chef and co-owner Nigel Douglas, 38. He also qualifies for multiple discounts under the social equity program because of where he lives and because he was charged with marijuana possession in the late 1990s. Douglas, who has helped open restaurants from Chicago to the Virgin Islands, has cerebral palsy and said he has self-medicated with marijuana since he was a teenager. His possession charge was dropped to a paraphernalia charge and he avoided jail. That he’s eligible for the same benefits as his business partner makes him question the fairness of the program. “My conviction wasn’t as serious,” Douglas said. “It was petty. It didn’t really affect my life. Then you look at other people who spent years in prison. There should be incentives for people affected worse than others.” In the past five years, there have been nearly 2,000 felony convictions for marijuana possession in Michigan, according to the Department of Corrections. In 2018, around 3,100 people in jail, prison or on probation for felony marijuana convictions. Chris Gautz, spokesman for the department of corrections, said nobody in Michigan is imprisoned solely for possession of marijuana on the streets. He said a handful of people are serving prison sentences for possession while in prison or possession in addition to other charges. “I think there’s a misconception that if someone got caught with a joint, they were sent to prison for 10 years,” he said. “That’s just not what happens.” Douglas said he also feels there should be a program specifically for minorities, who were disproportionately arrested for marijuana. In 2010, black people were more than three times as likely to be arrested for marijuana in Michigan as white people,

RYAN MILLER, MILLERTYME DESIGN

according to a 2013 report from the American Civil Liberties Union. Councilman Tate said that for a majority-black city with high poverty such as Detroit, opening a marijuana business is out of reach for many. Capital costs, real estate ownership and lack of experience navigating the bureaucracy are all major barriers. He declined to offer details of the proposed city ordinance because it’s still being drafted. “We’re finalizing details now to ensure that what’s being proposed is legal and will actually help provide us the outcome we are looking for,” he said.

Looking forward Roberts said what happened to him isn’t fair, but he’s thankful the state appears to be making amends. “I can’t hold a grudge,” he said. “I can never give my son back those four years and eight months that was taken from him. I know he holds a grudge, but I can’t let that eat me up.” These days, his fine-dining venture, along with his hemp growing business Michigan Cannabis Farms, keeps his head forward. He runs them with his wife, Lynette, and Douglas. Their goal is to be a “seedto-sale” grower and seller of marijuana with retail locations around the Muskegon area and eventually Ann Arbor and Detroit. Roberts said the state has helped guide him through the social equity program by answering questions and providing consistent support as he looks to scale up. That, of course, depends on obtaining the proper licenses, which he thinks won’t be an issue. Getting Muskegon Heights to stay on board remains a hurdle. The city is opted in as of now, but that could change. For the past few months, Roberts and Douglas have been making the case to city officials that allowing recreational marijuana businesses makes good economic sense. “There’s a little bit of a stigma left,” Roberts said. “I think it will go away as education increases among the masses. It feels like those stereotypes are going away.” Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

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

ROCKET FROM PAGE 3

The free internet service will relieve the district of its $212,000 annual Comcast bill, which has reached $268,000 some years and would have grown with the district’s increasing bandwidth demands, Niehaus said. “They proposed a very creative contract,” Niehaus said of Rocket Fiber. Grosse Pointe schools currently use about 2.5 gigabits of internet bandwidth. But the district is in the midst of $18.5 million in technology improvements in its buildings that include adding more devices requiring internet access, Niehaus said. “If we’re going to invest $18.5 million in infrastructure in our school buildings, we want to make sure we have the bandwidth to be able to carry on,” he said. Rocket Fiber plans to install more than double the amount of fiber optic cable the Grosse Pointe school district needs. The company will string sheaths of fiber optic cable with 144 strands of fiber; the district is buying 60 of the strands, according to a contract approved by the Grosse Pointe Board of Education last month. The $2.09 million total construction cost includes $412,564 for a connection to Macomb Community College and $355,261 for a connection to Wayne State University to light the fiber, according to school district records. Grosse Pointe school leaders had no qualms with Rocket Fiber’s stipulation that the company be allowed to piggy-back on the new fiber network to break into the broadband market in the Grosse Pointes.

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

The Grosse Pointe Public School District has signed a $2 million contract with Detroit-based Rocket Fiber LLC to build a high-speed internet fiberoptic network among the district’s dozen school buildings, including Grosse Pointe North High School on Vernier Road in Grosse Pointe Woods.

“I think most people prefer, or would like to have, competition,” Niehaus said.

Competing with Comcast Rocket Fiber LLC, which is part of Gilbert’s family of companies, has caused disruption in the downtown Detroit and Midtown internet service market since the company launched in 2014, sparking fierce competition with Comcast Business. Gilbert and his Rock Ventures internally financed the $30 million cost of Rocket Fiber’s first phase of installing 5.5 miles of underground fiberoptic cable throughout Detroit’s central business district. The company started with providing high-speed internet to Gilbert’s technology-based online mortgage com-

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.

NEW HIRE? PROMOTION? BOARD APPOINTMENT?

ANNOUNCE YOUR

BIG NEWS IN CRAIN’S!

Crain’s People on the Move showcases industry achievers and their companies to the business community. For more information, contact Debora Stein at dstein@crain.com • or submit directly to CrainsDetroit.com/people-on-the-move Ask about our new 6x and 13x bulk commitments. Advertising Section

PEOPLE ON THE MOVE

pany, Quicken Loans, and then Gilbert’s tenants in Bedrock LLC-managed downtown office buildings, including Ally Bank and Meridian. Since then, Rocket Fiber has quickly snatched up internet service and wi-fi contracts with big businesses such as Henry Ford Health System and the new Detroit Pistons training center and headquarters in New Center and Lear Corp.’s downtown innovation center in Capitol Park. Hudson said the company won’t reveal how many customers it has, but that they now service companies in Southfield and Troy and consider themselves the dominant provider in downtown Detroit. “We count most of the major logos and brands in Detroit as Rocket Fiber customers at this point,” Hudson told Crain’s. “There are very few remaining

MILLAGE FROM PAGE 3

The township owns another 120 acres next to the property that it purchased in 2013. Total Sports Park is owned by Chris McInally, Brian Tinnion and Kevin Kelly. McInally did not return a message seeking comment. Opponents argue the proposal is a sweetheart deal for a struggling business that owes the township $1 million for health and safety improvements, claims Township Supervisor Daniel O’Leary says are false. A vocal opposition campaign has crescendoed, prominently being trumpeted by former state Sen. Dave Jaye, a longtime township resident with a checkered past in Macomb County and state politics. Jaye — who in 2001 was expelled from the upper chamber after three drunken-driving arrests, charges of domestic violence and having sexually explicit images on his stateowned computer — said township officials are attempting to levy a tax to “overpay” for the soccer complex that was valued at $5.4 million by the township’s own board of review. It cost $8.5 million to build. “It’s absolutely wrong and abusive to have the township board try to buy it for over double,” said Jaye, chairman and treasurer of an anti-tax group called USA Taxfighters, formed in September. “It’s a bad deal.” O’Leary says there are no comparable properties and that the purchase price of $64 per square foot for the 118,000-square-foot building is a fraction of what it would cost to build new. He also says that

anchors down here that we don’t serve.” One Comcast executive told Crain’s in 2017 that Rocket Fiber was going after “the cream of the crop,” almost predicting its upstart competitor would set its eyes on the Pointes. “We don’t build out only to wealthy areas,” Comcast Senior Executive Vice President David Cohen told Crain’s. Comcast did not formally bid on the Grosse Pointe project because the telecommunications giant wouldn’t sell the dark fiber infrastructure to the school district, Niehaus said. Following “numerous” meetings with Niehaus, Comcast submitted lease and internet connection “scenarios” to Grosse Pointe for schools using its existing 100-gig fiber network in Grosse Pointe, Comcast spokeswoman Michelle Gilbert told Crain’s. Comcast’s proposal, though not a formal bid, would have provided “the same speed and control as the accepted proposal, with periodic and no-cost technology refreshes, and without the school district having to spend millions of dollars,” Gilbert said. “Our proposal required no construction or destruction and repair of property and could have been turned up within months,” she added.

Other opportunities Rocket Fiber will have Grosse Pointe schools’ fiber high speed internet up and running by summer of 2020, Hudson said. Using Jefferson and Mack avenues and other corridors that connect Detroit and the Pointes, Rocket Fiber will be able to use the project to build up capacity for future commercial and residential service on Detroit’s the land is being purchased for far less than surrounding properties have sold for, and recent purchase offers are far north of what ballot proposal opponents say the property is worth. Auburn Hills-based Moceri Cos. offered $4.125 million for 55 acres of land on the site, a purchase price of $75,000 per acre, Dominic Moceri, partner of the development company, confirmed. It would be for a multifamily or senior complex, he said, but no other details were revealed. (Eighty acres would be $6 million at that rate.) Jaye also said the township should not get into the business of owning a sports complex. He’s worried the cost of an unfinished sewer connection will be foisted on ratepayers in the Macomb County suburb. “There is a hall of shame of failed government run facilities — the Silverdome, Joe Louis Arena,” Jaye said. (While the Silverdome was run by the Pontiac Stadium Building Authority, the Joe Louis Arena was run by the Ilitch family’s Olympia Development of Michigan.) O’Leary said some of the proposal’s organized opposition is disingenuous and has ulterior motives to see it go down in defeat. He says a company wants to build a $100 million new office building for 1,000 employees on part of the 80 acres, but declined to reveal the name of the firm. He said other communities are in the running. A source said it is ZF Friedrichshafen AG-owned automotive supplier TRW Automotive Holdings Corp., which has space in a 125,000-square-foot building at 4505 26 Mile Road, about seven

east side, Hudson said. The company’s existing fiber network currently extends to the Detroit Academy of Arts and Sciences on Jefferson Avenue in the Rivertown warehouse district, west of the Island View, West Village and Gold Coast neighborhoods. Rocket Fiber company officials see the project with the Grosse Pointe schools as a way to build out its network in other suburbs by starting with the local public school buildings. “We’d be open to talking to any school district about this kind of arrangement,” said Hudson, a Crain’s 20 Under 20 honoree in 2015. Twenty-six of the 32 school districts in Wayne County already own their own fiber optic cable networks; Grosse Pointe is one of six school districts in the county that don’t, according to Niehaus. The other public school systems that don’t own their fiber networks are the Detroit, River Rouge, Taylor, Van Buren and Westwood districts, said Randy Liepa, superintendent of the Wayne County Regional Educational Service Agency. In the Grosse Pointes, the school district had tried to organize a consortium of public sector institutions to get hooked into Rocket Fiber’s service together. The Grosse Pointe Public Library’s board of directors voted to join the consortium, but only if the five Grosse Pointe municipalities did so as well. That effort failed, so for now the school district is moving forward alone, said Jessica Keyser, director of the Grosse Pointe Public Library. Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood miles southwest of the Total Sports property, according to CoStar Group Inc., a Washington, D.C.-based real estate information service. It sits on 13 acres. “ZF is proud to be a longtime member of the Washington Township community,” said Tony Sapienza, head of North American communications for ZF. “While there have been many public discussions about our facility, it’s important to note that we’ve made no announcements and it is too early to share any potential news as nothing has been decided. We will continue to evaluate our business needs to determine if a new site is required and, if we come to that conclusion, will review all of our options. If and when we have real news to share we’ll do so at that time.” O’Leary suggested people looking to bring the possible development outside of Washington Township may be financially backing efforts to torpedo it. “The other developers in the two other towns (Shelby and Bruce townships) have a vested interest in my millage failing,” he said. “I’m not going to slander anyone, but there is a shit ton of money for a local 0.25mill fight. Based on the fliers and billboards, videos, signage, they have already spent $20,000.” “I have people here who have a vested financial interest in killing this project, spreading misinformation trying to scare the voters, and then the usual political competition.” Senior Editor Chad Livengood contributed to this report. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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

CAMDEN FROM PAGE 3

Income for freelancers is less predictable than for traditional workers, and they face barriers to health care and financial planning, according to iPSE-U.S. and Kelly Services.

‘An opportunity’ A more-popular-than-expected Kelly Services policy conference in Washington, D.C., in 2016, while Camden was still there, helped set the wheels in motion for iPSE-U.S. But Kelly has aimed to support temporary and independent workers going back more than 50 years, according to John Healy, vice president and managing director in Kelly Services’ Office of the Future of Work. When Camden approached Kelly about its interest in iPSEU.S.’s efforts after he stepped down in 2017, Kelly evaluated and decided to back it, Healy said. “To have an organization like iPSE representing the voice of the (independent) worker, to us, offers a significant opportunity to ensure whatever policies are enacted are more representative of not only what governments and corporations need, but also what workers want and need in the marketplace,” said Healy, who is also on iPSE-U.S.’s board of directors.

“As I was finishing up my time at Kelly, I had begun moving the company further into the talent supply chain, where we were supplying major global companies with all the nonemployee talent they needed. We were working increasingly with not just temporaries, but a much larger (array of independent workers).” Carl Camden

According to iPSE-U.S., Kelly is a top sponsor and granted the effort initial support of $1 million. Kelly declined to confirm the figure, but said its sponsorship came through both cash and in-kind services. Bishop, also a former Michigan Senate majority leader and an attorney, signed on to the effort, too. His public-sector expertise is paired with a background that includes private practice work and entrepreneurship. “I’m a gig worker,” Bishop said. “It helps me be a better advocate for the cause, because I’m living the creed.” Ramping up since its launch, iPSE-U.S. lobbies for federal and state governments to protect the rights of independent workers — anyone from a self-employed contractor for an auto supplier to a freelance videographer or ride-

CRAIN’S DETROIT BUSINESS

October 28, 2019 share driver. It seeks to reform labor policy to expand access to benefits structures, glean more government recognition and peel away what it calls unfair tax treatment. The association created a plan of action with Washington, D.C., lobbying firm Mehlman Castagnetti Rosen & Thomas and established National Independent Worker Day on Aug. 16. And for those who decide to work for themselves, iPSE-U.S. wants them to know: They’re trying to build a safety net. iPSE-U.S.’s “several hundred” members (Camden declined to specify) get benefits including Accidental Death & Dismemberment and accident insurance for their $99-per-year membership. They also get access to group-rated dental and vision plans, and individual health care exchange access. Those benefits come from a separate company, iWorker Innovations, which contracts with iPSE-U.S. and is led by Hollie Heikkinen, a longtime entrepreneur and independent worker advocate. In the U.S., an association like iPSE can’t directly collect money for benefits products, though the U.K. association can. “I don’t see us adopting a European-style benefits structure ... so I think it’s a long-term solution to have these types of private benefits embedded in the work they do,” Camden said. “Health care (is an important benefit) tied to employment ... I think in the longer run that health care is going to continue to be the tough nut that has to be cracked.” Two tech-centric partnerships are helping iPSE-U.S. form a support base. With Moonlighting — an online platform where one can find more than 725,000 freelancers — iPSE can promote its membership and handle advocacy for these workers, while the platform handles the job-opportunity side, Camden said. Compuware Corp. co-founder Karmanos’ Mad Dog is building a digital platform that gives an independent worker a one-stopshop for benefits enrollment like a full-time employee would have.

A slice of the pie Nontraditional income earners aren’t a small slice of the workforce. More than 40 million adults in the U.S. work independently either on the side or full-time, the 2019 MBO Partners State of Independence report found. They generated $1.28 trillion in revenue in 2018 and have an average income of $68,300. By 2024, more than half of the workforce will have done gig work at some point, MBO predicts. Cities such as New York and Los Angeles may be seen as leading the movement, but Southeast Michigan has its share of independent workers — especially in automotive, engineering, IT and coding, Camden said. “Michigan is one of the good states for independent work, there’s not that many oppositional laws and a heavy base of high-compensation, high-level talent who are choosing to work that way,” he said. Annalise Frank: (313) 446-0416 Twitter: @annalise_frank

Advertising Section

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

POSITIONS AVAILABLE

Now Hiring: Estimator

Looking for a responsible candidate for developing cost estimates & determining scopes of work using bid drawings & project specifications. Be able to communicate comfortably and confidently with fellow colleagues through the bidding process. Full Time Salary Position. Please email resumes to: lmakins@mbmfab.com

REAL ESTATE RESIDENTIAL PROPERTY

2,280 ACRES FOR SALE DOUBLE EAGLE RANCH North Central Michigan TheDoubleEagleRanch.com Call Kyle: 248-444-6262

CRAIN’S READERS HAVE AN AVERAGE NET WORTH OF $1.6 MILLION *

Contact Suzanne Janik at sjanik@crain.com or 313-446-0455 for details.

NOW HIRING : INVESTMENT REAL ESTATE BROKERS

Local, established investment real estate brokerage firm is now hiring new agents. Previous sales experience required. On average our agents earn well into the six figures. Existing brokers may qualify for a substantial signing bonus. We offer some of the most competitive split structures in the industry. To discuss further contact us: fnl@fortisnetlease.com POSITIONS AVAILABLE Molex, LLC seeks Product Managers for Rochester Hills, MI dev & implement the strategic direction for technical products. Master’s in ME or related Eng field+2yrs exp or Bachelor’s in ME or related Eng field+5yrs exp req’d. Req’d Skills: design exp w/ products incl engine control module connectors, sealed connectors (powertrain, engine, transmission, body electronics) for the automotive industry, electro-mech devices & coordinating design of these products (incl connectors) w/ international offices (incl Asia) for eng, technical & sales support for OEM international automotive solutions standards; implementation of Global OEM connector design & validation specifications; design/documentation/ specifications of multiple product configurations for ECU and TCU; liaising between design engs & end-users. Send resume to: MLXjobs@kochind.com, Ref: SKR POSITIONS AVAILABLE

Detroit - Wayne Joint Building Authority

Request-for-Proposal (RFP) Professional Services – ADA Assessment Services The Detroit-Wayne Joint Building Authority (Authority) is interested in securing the services of a professional service firm to provide an assessment within the common elements at the Coleman A. Young Municipal Center. Interested parties should request a copy of the RFP by emailing a request to Commissioners@dwjba.com. Submission Requirements: RFP responses are due no later than Monday November 11, 2019 at 12:00 Noon. All submission requirements are included in the RFP. POSITIONS AVAILABLE

Lead Test Engineer; 01 Position: Novi, MI

Perform Multimedia, BT/Wi-Fi & connec (Car play/Android Auto) test. Feature spec tests, Integration tests, Partial/Full Regression, Automated tests. In-vehicle Bench te sting/troubleshooting, Carplay & Android Auto Testing, Reproduce Defects, verify fix ed/resolved issues, support Developers. Identify Test scenarios on funct & busn req, create & maintain test cases. Supp cust test drive. Create test rep of errors with support trace, log file & excel descrip. Ensur test result are documented & communicated & defects been entered in defect mgmt tool. I’face with cust as needed to reproduce issue found in vehicle or system. Qualification & Exp: Bachelor’s deg (Or Foreign Equal) in ComSci, Eng, InfoTech, Electro/Electri Eng/ rel & 5 Yrs exp in IT industry of which 3-5 yrs exp into Automotive Infotainment or Connectivity Testing is accepted. Alternate: Master’s deg (Or Foreign Equal) ComSci, Eng, InfoTech, Electro/ Electri Eng/ rel & 3 Yrs exp in IT industry & exp in Automotive Infotainment or Connectivity Testing is accepted. Exp: Work k’ledge of func & non-func SW test, SW test life cycle & vari test design methodologies (function, performance, stress, acceptance, smoke etc.). Creation test plans, test case dev Req analysis, Exp with automated test tools & Framework, test automation exp with defect mgmt tools. exp with log tools, MS Office, QNX, Android, Wi-Fi, BT. Apply: Send resumes - Harman Connected Services Attn: Mahesh G M/Job Code LTE-HCS-M-01, to 2002 156th Ave NE #200, Bellevue, WA 98007. May have other long term assignments in Farmington Hills, MI. POSITIONS AVAILABLE

Principal Software Engineer, 01 position, Novi, MI,

*Signet Readership Study

Visit our WEBSITE: www.crainsdetroit.com/classifieds for more classifieds advertisements, contact Suzanne Janik at 313-446-0455

Job Code: PSE-HCS-M-09: Responsible from inception to completion of leading the SW des, dev, integ & deliv into new/exist vehicle infotainment sys with comp capabilities incl cloud interface, SW OTA update, instrumentation for telematics, CAN app to capture CAN data. SW req with cust. Lead SW dev for Auto infotainment system incl Middleware layers such as vehicle Networking, Connectivity, Media, Systems, Telematics, Voice Recognition, Navigation etc. Assign work for dev team each sprint & track their progress. Work with Stakeholders, u’stand & support the implementation of nec middle-ware program interface. Des & Dev of CAN App module using J1939 protocol to supp the data capture for Telematics apps. SW integ activities for Harman Ignite solution (Analytics Solution) for Telematics into Infotainment Sys. Lead sys integ, unit & regression test, SW integ activ for Harman OTA solution to exis Infotainment Sys. dev & integration of embedded SW in Linux Sys. SW update desi & archit both over USB & OTA. Requirements: Bachelor’s deg (or foreign Equivalent) in CompSci, Eng, CompApps, Electri/Electro Eng or equal /rel & 6+ yrs of exp in IT. Alt: Master’s deg(or foreign Equivalent) in CompSci, Eng, CompApps, Electri/Electro Eng or equal/rel & 4 yrs of exp in IT. Other req: Exp in Sw dev for Automotive. Embedded SW Dev (Embedded C C++ Programming). Micro Controller programming. CAN Protocol k’ledge. Diagnostics over CAN using UDS and KWP2000. Vector Tools & Code generation using CANoe. Diagnostics & Fault Mgmt Strategy exp. 3 years of exp in Black box (system integration testing) & white box (unit testing & static analysis), regression test, Automation testing. Apply: Send resumes - Harman Connected Services Attn: Mahesh GM/Job Code PSE-HCS-M-09, to 2002 156th Ave NE #200, Bellevue, WA 98007. May have other long term assignments in Farmington Hills, MI.

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

DIA

FROM PAGE 1

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

REPORTERS Annalise Frank, breaking news. (313) 446-0416 or afrank@crain.com Jay Greene, senior reporter, health care. (313) 446-0325 or jgreene@crain.com Kurt Nagl, breaking news. (313) 446-0337 or knagl@crain.com Kirk Pinho, real estate. (313) 446-0412 or kpinho@crain.com Dustin Walsh, senior reporter, economic issues. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter, nonprofits and philanthropy. (313) 446-1694 or swelch@crain.com

MEMBERSHIPS CLASSIC $169/yr. (Can/Mex: $210, International: $340), ENHANCED $399/yr. (Can/Mex: $499, International: $799), PREMIER $1,299/yr. (Can/Mex/ International: $1,299). To become a member visit www.crainsdetroit.com/ membership or call (877) 824-9374

ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Director, Program Content Kristin Bull, (313) 446-1608 or kbull@crain.com Senior Account Executive John Petty Senior Account Manager/Political Specialist Maria Marcantonio Advertising Sales Lindsey Apostol, Mark Polcyn, Sharon Mulroy People on the Move Manager Debora Stein, (917) 226-5470, dstein@crain.com Events Director Kacey Anderson Director of Marketing Christina Fabugais-Dimovska Senior Art Director Sylvia Kolaski Director of Media Services Joseph (Sam) Tanooki, (313) 446-0400 or sabdallah@crain.com Integrated Marketing Specialist Keenan Covington Classified Sales and Sales Support Suzanne Janik

CUSTOMER SERVICE Single copy purchases, publication information, or membership inquiries: Call (877) 824-9374 or customerservice@crainsdetroit.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com Crain’s Detroit Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice Chairman Mary Kay Crain President KC Crain Senior Executive Vice President Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except the last issue in December, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2019 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

Building those types of relationships and with diverse communities on everything from exhibition planning to gallery re-installations and acquisitions is helping the museum become more relevant to more people, Salort-Pons said. That’s important, given that minority populations in the region are projected to become the majority by 2040, he said. “The museum needs to be prepared to serve everyone.” As the DIA becomes more meaningful to those communities, new support is following, Salort-Pons said. Padma Vattikuti, who joined the DIA’s board in 2017, and her husband Raj Vattikuti, founder of Southfield software developer Altimetrik Corp., recently made a $3 million gift to the DIA’s endowment campaign. To recognize the gift, the DIA has named the Indian gallery for the couple. Those gifts are supporting the second phase of the endowment campaign the DIA launched in 2012 after it secured a tri-county operating millage for the museum. Salort-Pons said he’s confident support from diverse communities, coupled with those from longtime supporters like DIA Chairman Eugene Gargaro and his wife, Mary Anne, who recently made a $1 million endowment gift, and interest on the current $232 million endowment will help the DIA hit its $400 million endowment target by the time its operating millage expires in three years. That level of endowment would provide roughly $20 million in revenue each year to help fund the museum’s operations. (The millage provided just shy of $26 million to the DIA in fiscal 2019.) But given that the DIA’s operating budget has risen to $38 million for fiscal 2020 from $25 million in 2012, it could find itself back where it was seven years ago: having to raise millions of dollars each year to meet operating costs even after it hits its initial endowment target. Many of the added operating costs have been tied to the millage for things like free bus transportation for students and seniors and community partnerships that are part of the agreements with the art authorities in Wayne, Oakland and Macomb counties where the millage is levied, the DIA said. The millage support has transformed the DIA into a museum that is much more focused on the community and local schools, Salort-Pons said, noting that more than 2.2 million people have visited the DIA since 2012, as a result of the tri-county service agreement benefits, including free admission and free field trips. “Our hope is to be able to continue providing these important benefits to the residents of Macomb, Oakland and Wayne counties,” Salort-Pons said. “Whether we are able to fill the funding gap via fundraising or public support is a decision that our board of directors and the people we proudly serve every day have to decide.”

Post-millage hurdles The operating millage passed by voters in 2012 was meant to take some of the pressure off the DIA’s annual, operational fundraising for at least a decade, enabling it to focus on raising endowment. But then came the Detroit bankruptcy. To protect the museum’s col-

DETROIT INSTITUTE OF ARTS PHOTOGRAPHS

The 2019 Ofrenda display by local artists, celebrating El Dia de Muertos at the Detroit Institute of Arts. Anita Rajpal stands next to Detroit Institute of Arts Director Salvador Salort-Pons at a paella dinner he cooked for leaders in the local Indian community.

lection from creditors eyeing it to help pay down debt, the DIA had to raise $100 million for its part of the “Grand Bargain” to shore up pension funds and spin the DIA off from the city to ensure there would be no future threats to the artwork. Many longtime donors who supported the museum’s portion of the deal are still paying on those commitments. But the museum raised $65 million toward its endowment between 2012 and July 2018 when it launched the second phase of the endowment campaign. Raising what adds up to about twice as much as it’s raised to date for endowment in half the time is an ambitious goal, he agreed, but one he believes the DIA will achieve. Typically, it takes years for nonprofits to cultivate large gifts, and it took the museum three years to secure the $3 million gift from the Vattikutis. But the DIA was able to secure commitments for $100 million in under a year to help save the museum from the city of Detroit’s creditors in 2013-2014, during the city’s bankruptcy. (And some donors are still paying on that commitment, according to the museum.) Over a decade earlier, three of the museum’s biggest supporters — the late Josephine Ford, Richard Manoogian and the late A. Alfred Taubman — made a joint $50 million gift to the DIA in 2001 to help it launch the campaign to renovate the historic museum and reinstall its collection. Over the past year, the DIA has raised $11.2 million toward the endowment, and Salort-Pons said he expects to announce several other new endowment gifts before year’s end.

Engaging diverse cultures After the paella dinner, the DIA started to see an uptick in membership from Indian community and groups of community members coming to events at the DIA. Through introductions made by

Dr. Swarn Rajpal and his wife, Anita, and later, the Vattikutis, the museum began to meet more people from the Indian community. It began hosting specific events for the community and invited community feedback on the objects it should present and the stories it should tell as it worked on the installation of the galleries in the Asian wing, Salort-Pons said. “By doing that, we co-created with the communit(ies) … all these galleries so that when they would come to the museum and see the re-installation of the Asian galleries, they would see themselves represented,” he said. Following the opening of the Japanese gallery two years ago, the DIA opened the other galleries in the Asian wing last fall. It celebrated India and the country’s art at its annual gala held last fall. Over 500 people attended, and Salort-Pons said he knew only half of them. ”That was, for us, a great sign of success,” he said. The museum has purchased works by Indian artists to expand its collection and ensure art that is meaningful to the community is included. The museum is doing the same sorts of engagement with the African American, Japanese and the Hispanic/Latino communities, Salort-Pons said. For example, it hosted the Ruben and Isabel Toledo Labor of Love Cuban fashion exhibition and invited members of Detroit’s Latino community to create ofrendas — elaborate displays of objects important to lost loved ones — at the museum as part of the “Ofrendas: Celebrating el Dia de Muertos” exhibit which runs through Nov. 10. The DIA is taking art installations into Detroit neighborhoods and featuring works by local artists at the museum to better connect with people from the African American community. From November-March, the museum will feature “Detroit Collects: Selections of African American Art from Private Collections.”

Longtime supporters The museum also is reaching out to its longtime supporters, said Nina Holden, senior vice president and chief development officer. “Part of this fundraising strategy is really to connect different parts of our community with different priorities of our mission,” she said. The museum has established several pillars donors can support with endowment gifts, including: education and outreach, the collection, talent, and spaces and galleries. Gargaro, who has chaired the DIA’s board for 17 years, said that as chair of the board committee that’s leading the “DIA Now” endowment campaign, he and his wife must give to lead and set the pace. But the reason they made the gift went well beyond that. “We feel very motivated that our volunteer efforts benefit not only the current generation, but also our children and grandchildren,” Gargaro said. He’s confident the DIA will exceed its endowment goal, he said, “because many current and new donors realize that their investment will secure a strong future for the DIA as the cultural centerpiece for our state and our region.” Padma Vattikuti, an art lover from an early age, was among those attending the paella dinner Salort-Pons and his wife cooked for the group of Indian leaders three years ago. In a bid to support the region that helped them become successful and a premier art institution, she and her husband provided a five-figure gift to the DIA in 2008 to support an exhibition in the Mughal style of Indian miniatures paintings at the DIA in 2008. But they hadn’t engaged again since. At the paella dinner, Padma Vattikuti said she was taken by Salort-Pons’ plans to bring diverse communities together by including an Indian gallery along with Japanese, Chinese, Korean and southeast Asian galleries in the museum’s Robert and Katherine Jacobs Asian Wing. She had been to the DIA many times but had never dreamed it would feature an Indian gallery, she said. “I was excited because we chose to make our lives here. Our children, grandchildren will all be here,” Vattikuti said. “It’s something for them, to bring a little of India here.” Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

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

DNR

FROM PAGE 1

Meanwhile other outdoor activities, such as birdwatching, hiking and kayaking, are rapidly growing, upending a model for conservation funding that relies on fees paid by hunters and anglers. The decline is a crisis for wildlife and conservation agencies, including the Michigan DNR, whose reliance on licensing fees and a federal excise tax on guns and ammunition is drying up. No more blaze orange in the fields, no more green cash in the coffers. The DNR has had to cancel five wildlife conservation programs slated to begin this year and freeze all hiring as its largest source of revenue continues to dry up. The result is conservation efforts being displaced to the private and nonprofit sectors as the agency weighs new funding models. “We’re trying to work differently as our staff continues to restrict,” said Shannon Hanna, deputy director of the DNR. “We had almost 300 people in our wildlife division 20-some years ago. We’re down to 180 now. So we’re doing less and less. Less habitat work is getting done. We’re doing the core functions required by statute, like maintaining regulations and bag limits, but it’s becoming increasingly more difficult to truly perform conservation as it needs to be.” The Game and Fish Protection Fund, which is primarily funded by hunting and fishing licenses and fees, is the DNR’s largest source of revenue at about $83 million of the agency’s budget.

The sale of deer hunting licenses dropped nearly 16 percent between 2013 and 2018, falling about 2 percent annually since the turn of the millennium, according to DNR data. Hunting licenses in total, including small game and other specialty licenses, also dropped 16 percent over the same time. Hanna said the DNR expects those numbers to continue to decline for the next decade. A 2013 Michigan Technological Study estimates the number of registered hunters in the state to fall below 400,000 by 2035, down from nearly 800,000 in the mid-1990s. The state’s conservation agencies were also hard hit by a sharp drop in revenue from the federal government under the Pittman-Robertson Wildlife Restoration Act. The feds distribute tax revenue collected from the sale of firearms and bullets via an 11 percent excise tax on rifles and ammo, a 10 percent tax on revolvers and pistols and an 11 percent tax on archery equipment. Those funds are distributed to states for conservation efforts and gun-safety training. States saw a boon under President Barack Obama as gun owners rushed out to buy guns and ammo over fears of more restrictive laws under the Democrat. Those fears never materialized into legislation, but gun sales peaked at $29 billion during Obama’s two terms, up more than $6 billion during George W. Bush’s two terms as president. Michigan received nearly $22.2 million in Pittman-Robertson funding apportioned for wildlife conservation in 2015. This year, that total dropped to just over $16 million. “We’ve seen a big decline because

the Obama bump is gone,” Hanna said. “Now we’re just trying to rightsize our budgets. We’re looking at all of our programs and seeing where we can cut next.” The problem isn’t limited to Michigan as other states have been forced to make cuts amid hunting decline. Wisconsin’s Department of Natural Resources has cut back on habitat management and not filled open positions. Colorado’s wildlife agency has cut tens of millions of dollars in programs that deal with invasive species. But while resource agencies are trying to do more with less as hunters decline, outdoor recreation in different forms continues to rise. Roughly 63 percent of Michigan residents still participate in outdoor recreation, according to a 2018 report Outdoor Industry Association. Activities such as hiking, kayaking and even picnicking are on the rise, according to a survey by the DNR. Of those surveyed, 32 percent participate in canoeing, kayaking, stand-up paddle boarding or wind surfing and 34.1 percent hike or backpack, only 6 percent behind fishing. The Association of Fish and Wildlife Services warned in a panel to review funding sustainability that, “Without a change in the way we finance fish and wildlife conservation, we can expect the list of federally threatened and endangered species to grow from nearly 1,600 species today to perhaps thousands more in the future.” And, according to those wildlife experts, this impacts more than just animals. “In addition to the tragedy of placing our country’s natural heritage at

risk, such increases will impact business by raising costs for regulatory compliance, delaying deployment of capital and creating less regulatory certainty,” the group said. Opportunities to make up the declining revenue from hunting are limited, Hanna said. The DNR most recently raised hunting license fees in 2013, but Hanna said that’s merely a “BandAid.” She said the DNR will have to wait for many current legislators to leave office before the agency asks to raise fees again. Other states have introduced or raised hiking fees, camping fees and other fees associated with the growing popularity of other outdoor activities. Hanna said the DNR has toyed with the model of a “conservation stamp” for those using the state’s resources for outdoor activities. “It is something we’ve looked heavily at because there are a ton of users that don’t pay into the system at all. If you’re going to hike, kayak or mushroom pick, you’re also utilizing a natural resource,” Hanna said. “It’s probably fair to make it a more broad pay-to-play model. All the resources we currently have, that was bought with hunter money. It’s on the backs of hunters.” But Hanna worries asking more users to pay will create more battles over how land is used. “You can get into a lot of grabbing” Hanna said. “A fat tire bike guide will want more bike trails. A horse rider will want more horse trails. We tend to tread a little bit lightly because those folks already knock down our door. But we can keep them at bay because they don’t pay. That changes

if the funding model changes.” In the meantime, the DNR is relying more heavily on the nonprofit sector and volunteers to provide labor to the state’s conservation efforts. Last week, the Michigan United Conservation Clubs, a nonprofit membership group with more than 41,000 hunters, anglers, trappers and conservationists, was planting honeysuckle and dogwood trees near Traverse City — a job the DNR used to do. “Volunteers have stepped up and done a lot of the ground work,” Hanna said. “With less and less funding, we’ve had to, for lack of a better term, contract out a lot more work.” Amy Trotter, executive director of the MUCC, called conservation a “team sport,” and using volunteers may not be ideal for the DNR, it’s the only way the state will succeed in protecting natural resources. “The revenue streams are not keeping up with the cost of doing business,” Trotter said. “If that’s the state we’re going to stay in then we need to think about the business differently. We need to think about how (non-governmental organizations) can fill those gaps.” And that means more than just hunters. “Hunters and anglers put their Saturdays where their mouth is,” Trotter said. “The perception they just take is wrong. They aren’t just taking away from our resources; they are giving back. We want to ensure other users of our resources continue that whether there is cash or not.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

WE’RE UNVEILING A NEW LOOK AND NEW FEATURES STARTING NOV. 11 WHATS NEW: A refreshed print design featuring sleek new fonts and an updated layout A revamped weekly briefing column, called Need to Know, that gives readers a quick, digestible analysis of the most important news The Conversation Q-and-A column that features an array of people and helps readers get to know them and their organizations

RETURNING FEATURES: Real Estate Insider offering weekly inside detail, tips and other notes on what’s going on in real estate

Crain’s Forum a monthly look at public policy issues affecting Detroit and Michigan’s economic future …and more!

Interested in aligning your brand with these features? Email Lisa Rudy at lrudy@crain.com

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

THE WEEK ON THE WEB

RUMBLINGS

Wayne State to offer free tuition to Detroiters

PR veterans Caponigro, Robar net Hall of Fame nod

OCTOBER 18-24 | For more, visit crainsdetroit.com

ayne State University pledged to provide free tuition to any Detroit high school graduate for costs not covered by other forms of financial aid. The gap scholarship would apply to any graduate of a public, charter or private high school or homeschooled Detroit resident enrolling at Wayne State starting for the fall 2020 semester, including those who attended high school outside of the city but have a Detroit mailing address. “It’s not only a game changer, it’s a life changer,” Wayne State University Provost Keith Whitfield said last week. Wayne State University President M. Roy Wilson and Whitfield announced the tuition pledge last week alongside Mayor Mike Duggan and Gov. Gretchen Whitmer and others during an all-school assembly at Detroit’s Communications and Media Arts High School on the city’s northwest side. Detroit students enrolled in the program will have their remaining tuition and fees covered after funding from the federal Pell Grant, privately funded scholarships and the Detroit Promise scholarship kicks in, Wilson said. “We’re going to roll it out in the fall of 2020 and we expect to continue to do it as long as we can,” Wilson told reporters. Wayne State’s base tuition and fees for a freshman enrolled full time and taking a 30-credit hour load over two semesters costs about $12,234. That cost does not include books or room and board. Wilson said it’s unclear how much the tuition pledge will cost the university. “I don’t have an exact amount, but we’ve done all of the calculations and we’ve made sure we can afford to do this,” Wilson said. “And we can do it.” Whitmer said Wayne State’s “incredible gift” to Detroiters will help the state achieve her goal of having 60 percent of Michigan adults with a postsecondary degree or certificate by 2030. “This is a real path, a real path for everyone,” she said. The scholarship is available to first-time, full-time freshmen who are admitted to the university and fill out the Free Application for Federal Student Aid (FAFSA). Whitmer, who has high school-age children, called completing the FAFSA form “a pain in the rear-end.” Wilson emphasized the tuition pledge is extended to any future high school graduate who lives in Detroit. “But certainly if you go to DPS, you’re extra special,” the Wayne State president said at the high school that’s part of the Detroit Public Schools Community District.

BUSINESS NEWS J JPMorgan Chase & Co. is expanding its policy to hire more people with criminal records and spending $7 million in Detroit and other cities to develop career opportunities. In addition to Detroit, the New Yorkbased bank (NYSE: JPM) said the

WAYNE STATE UNIVERSITY

Wayne State University President M. Roy Wilson (left) announces the school’s new free tuition plan Wednesday at the Communications and Media Arts High School on Detroit’s northwest side. Also present are (from left) Detroit Public Schools Assistant Superintendent Chrystal Wilson, Wayne State Board of Governors Chair Kim Trent and Provost Keith Whitfield.

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

200,000

Estimate of workers who would be covered by new overtime pay threshold under Gov. Gretchen Whitmer’s proposal

156

Number of acres Redico LLC and a member of the Avis family plan to develop in Pittsfield Township

$750,000

The loan made to RecoveryPark that the Michigan Strategic Fund voted to forgive last week

funding will support programs in Chicago, Seattle, New York, Nashville and Delaware that work with people with criminal backgrounds to develop career skills. J Flint-based Diplomat Pharmacy Inc. has sold a chunk of one of its subsidiaries and plans to use the proceeds to pay down its debt. The struggling provider of specialty pharmaceutical services sold “certain assets” of Envoy Health Management LLC to Pennsylvania-based Diligent Health Solutions LLC. J Visitors without plane tickets are now allowed to pass security to greet and say goodbye to traveling family and friends at Detroit Metropolitan Airport, as well as visit restaurants and shops normally off limits. As of Oct. 22, the airport allows those without tickets to pass Transportation Security Administration security at the McNamara and North terminals, according to a news release from the Wayne County Airport Authority. J Workers at one of the largest General Motors Co. factories have voted to ratify a new contract with the company, an indication that a fiveweek strike could be coming to an end. United Auto Workers Local 598 at a pickup truck plant in Flint ap-

proved the contract last week. Johnson & Johnson has moved its U.S. self-care business creative accounts — including Tylenol, Listerine and Zyrtec — to MDC Partners’ Doner from WPP’s Wunderman Thompson. It is the first major pickup for MDC since Mark Penn took charge as CEO and a major blow to Wunderman. It is believed to be the biggest nonautomotive win for a metro Detroit-based agency in years. J Last week, Founders Brewing Co. pulled out of the Detroit Fall Beer Festival, one of the state’s biggest all-local-beer tasting events, amid backlash surrounding a racial discrimination lawsuit. J

he Detroit chapter of the Public Relations Society of America’s hall of fame will induct two new members at a ceremony next month. Public relations professionals Jeff Caponigro, founder and CEO of Caponigro Public Relations, and Colleen Robar, founder and president of Robar PR, will be honored at The Community House in Birmingham on Nov. 19, according to a news release. In addition, Megan Bonelli, a senior account executive with Franco, will receive The Nancy Skidmore Award for Distinguished Chapter Service. Caponigro, a 40-year veteran of the industry, also serves as executive vice president of corporate communications and chief marketing officer at human resource consulting firm Trion Solutions Inc. in Troy. He is the author of “The Crisis Counselor: A Step-by-Step Guide to Managing a Business Crisis,” and was awarded PRSA’s highest national award, the Silver Anvil, for a campaign to encourage passage of seatbelt laws in 48 states. Robar, who established Robar PR

Caponigro

Robar

in 2005, has held an array of positions with General Motors International, Crain Communications Inc., Mullen, Ardesta LLC and the Ritz-Carlton. Robar’s career in public relations spans 30 years. She is the producer of Detroit Homecoming, which brings together hundreds of Detroit expats and local thought leaders for discussions. The annual event has resulted in investments and commitments totaling nearly $400 million since 2014 and was honored as one of eight international “place-making” initiatives at the International Place Marketing Forum in France. The cost to attend the induction ceremony is $65 per person. Tickets are available at http://prsadetroit.org.

REAL ESTATE NEWS J The development group planning a $56 million conversion of the United Artists Building into apartments is closer to receiving tax abatements for the long-delayed project that also includes demolition of a decaying theater attached to the tower. It’s the first forward momentum in the effort to turn the 18-story building at 150 Bagley St. into 148 apartments since it was announced about 2 1/2 years ago as part of the Ilitch family’s District Detroit area’s residential plans. J The former Embassy Suites by Hilton Hotel in Southfield, which lost its branding and then later closed without warning, has reopened under new ownership amid a more than $2 million renovation. The Ramada Plaza by Wyndham Southfield opened earlier this month after local real estate professionals Aaron Morris and Shannon Steel bought it April 11 from Hotel Capital LLC under the entity Management Solution Holdings LLC. J Stacy’s Golf Center in Warren closed earlier this year to make way for a large new industrial or warehouse/distribution building. The property that housed the driving range and golf retailer, which had been open for more than 60 years at 24400 Dequindre Road, sold in August for $3.54 million to an entity called Warren SG USICIV LLC, which is registered in Texas at the Dallas address for developer Hillwood Enterprises LP.

OFFICIAL WHITE HOUSE PHOTO BY SHEALAH CRAIGHEAD

President Donald J. Trump shakes hands with Penske Automotive chairman Roger Penske after awarding him the Presidential Medal of Freedom Thursday.

Trump awards Roger Penske Medal of Freedom P

resident Donald Trump on Thursday awarded the Presidential Medal of Freedom, the country’s highest civilian award, to metro Detroit businessman and auto racing legend Roger Penske. In a ceremony at the White House, Trump repeatedly praised Penske’s racing team’s 18 Indianapolis 500 victories and called Penske “a giant of American industry.” “Guided by his father’s favorite phrase, ‘effort equals results,’ Mr. Penske built his one car dealership into Penske Corporation, a leader in global transportation services. On the track, Mr. Penske built and led Team Penske into the most successful motorsports team in history. Mr. Penske’s passion and unrelenting drive have established him as a business and motorsports icon,” the White House said in a statement. “No matter what you do it turns to gold,” Trump said, according to a White House pool report. Penske described receiving the medal as perhaps his most signifi-

cant achievement. “To me it means more than any business success or motorsports trophy,” Penske said. The Medal of Freedom is awarded by the president to citizens who make an “especially meritorious contribution to the security or national interests of the United States, or world peace, or cultural or other significant public or private endeavors.” Trump has previously given the award to Tiger Woods, Elvis Presley, former Utah Republican Sen. Orrin Hatch, Babe Ruth and economist Arthur Laffer, among others. Penske, 82, is the chairman of Bloomfield Hills-based Penske Corp., which operates the country’s second largest auto dealership group, and the owner of motorsports racing organization Team Penske. Penske’s companies employ some 64,000 workers around the world, and he has spent considerable hours and dollars working to revitalize Detroit. He helped bring the 2006 Super Bowl to the city and IndyCar racing back to Detroit’s Belle Isle.

T:10.875” S:10.25”

“ With a broken

mixer on one of our busiest days, closing shop wasn’t an option.“ Chase for Business Customer Kamal Grant Owner, Sublime Doughnuts

Learn more at chase.com/BusinessCredit

Products and services described as well as associated fees, charges, interest rates and balance requirements may diﬀer among diﬀerent geographic locations. Chase business checking account required. Subject to approval. Additional terms, conditions and restrictions apply. Participants compensated. JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender.

T:14.5”

S:14”

Whatever happens, get access to cash with a Business Line of Credit from Chase.