Crain's Detroit Business, Oct. 19, 2020 issue by Crain's Detroit Business

THE CONVERSATION

Innovation: UM grads use invasive plant to create healthier hair extensions. PAGE 6

Deloitte’s Tina Wheeler navigates health care industry in COVID age. PAGE 22 CRAINSDETROIT.COM I OCTOBER 19, 2020

REAL ESTATE

Cemeteries plot their future

As cremations become the norm, the industry looks for new lease on life Mt. Elliott Cemetery in Detroit was consecrated in 1841 — just four years after Michigan became the 26th state.

KIRK PINHO/CRAIN’S DETROIT BUSINESS

BY KIRK PINHO | If you die in the next 20 years, the chances are good that you’re

going to be cremated. Data from the National Funeral Home Association says that by 2040 in Michigan, 83.6 percent of the people who die will be cremated, compared to 47.3 percent in 2010. And according to the NFHA, the median cost for a cremation funeral with an urn is $6,645, compared to $9,135 for a funeral with a burial, including the cost of the casket and the burial vault.

That’s causing cemeteries and funeral homes to search for new revenue streams. “It does affect cash flow,” said Bert Edquist of Mission Hills Memorial Gardens in Niles in southwest Michigan. “But also it gives you the opportunity to make more burials because you’re using smaller spaces for the

cremation burials. Your land is producing more income, but you’re not getting that income as quickly as you did before. Basically it’s going to make the cemeteries last longer.” Much of the equation comes down to simple real estate. See CEMETERIES on Page 20

HEALTH CARE

Once a COVID-19 vaccine is ready for prime time, how will people get it? BY JAY GREENE

Even if vaccines become available to the public in the coming months to address the COVID-19 pandemic, how will the hundreds of millions of doses get to people in an evenly distributed way? Experts tell Crain’s there is a general distribution plan, but it is highly variable depending on which of the half-dozen coronavirus vaccines and the amount of doses are available. The federal government still hasn’t made a final decision on which populations will be first to receive the vaccines. Health care workers, first responders and those elderly or at high risk for infection will likely be the first to be inoculated in the opening weeks as

A health worker injects a person during clinical trials for a COVID-19 vaccine at Research Centers of America; several different vaccines are now in late-stage testing. | BLOOMBERG

NEWSPAPER

REAL ESTATE Big deal: Friedman sells Troy Technology Park in one of 2020’s priciest sales. PAGE 4

Ryan Hertz, CEO, Lighthouse Michigan

COVID-19 vaccine shipments roll down the highways to their designated distribution centers. Through the Advisory Committee on Immunization Practices, the U.S. Centers for Disease Control and Prevention will decide this fall which groups of people could receive an initial shipment of 100 million doses once the Food and Drug Administration grants approval, said CDC Director Robert Redfield in a statement last month. Once those decisions are made, Irving, Texbased McKesson Corp. will work with the CDC and the Department of Defense to ship COVID-19 vaccines to states and other pointof-care distribution sites. See VACCINE on Page 21

FOCUS | NONPROFITS  Merge? Close? Or something else? As nonprofits face down tough times, now is time for hard conversations. PAGE 10

NEED TO KNOW

THE GREAT REOPENING

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT  LEGISLATURE PASSES BUSINESS LIABILITY BILLS THE NEWS: The Michigan Senate passed an amended package of bills that will provide coronavirus liability protections to businesses. Legislation allowing public bodies to meet remotely, implementing task force recommendations on housing COVID-19 patients in centers run by nursing homes and extending unemployment benefits also were decided. WHY IT MATTERS: House and Senate action became necessary to extend various measures Whitmer took through executive orders that were rendered moot following a state Supreme Court decision earlier this month that declared unconstitutional a 75-year-old law that had underpinned Whitmer’s restrictions.

 REAL ESTATE MARKET REBOUND INTENSIFIES THE NEWS: The single-family housing market in metro Detroit continues its turnaround after seeing record recent lows during the COVID-19 pandemic. Closed home and condominium sales jumped 19.1 percent while pending sales rose 21.7 percent in the multiple-listing service yearover-year, according to data released Thursday by Farmington Hills-based Realcomp Ltd. II. Completed sales rose from 7,883 in September 2019 to

to his father-in-law, retired real estate investor Alan May, for an exhibition at the museum, something that could increase the artwork’s value and benefit his family. An expanded complaint filed in July also named board Chairman Eugene Gargaro. LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

9,382 last month, while pending sales jumped from 7,541 to 9,176, Realcomp says. WHY IT MATTERS: Sellers are reaping the benefits of an improving market so far, with median prices rising 13.4 percent from $185,200 in September 2019 to $210,000 last month.

 DIA SAYS INVESTIGATION FINDS NO WRONGDOING THE NEWS: A third-party investigation into alleged ethical violations by leaders of the Detroit Institute of Arts has turned up no wrongdoing, the Detroit museum said Wednesday. But the Washington, D.C.-based nonprofit Whistleblower Aid, which filed the complaints on behalf of past and current DIA employees, placed no faith in the report, which the DIA said won’t be made public. WHY IT MATTERS: Whistleblower Aid had alleged questionable practices by DIA Director Salvador Salort-Pons over the DIA borrowing art belonging

 STATE DEVELOPS COVID-19 CONTACT TRACING APP THE NEWS: Michigan State University and the Michigan Department of Health and Human Services have partnered on the development of a smartphone app that sends alerts to residents who may have been near someone who tested positive for COVID-19. The MI COVID Alert app sends notifications based on contact-tracing data collected by state and local health officials about the previous movements and contacts a person had before testing positive for COVID-19, MDHHS Director Robert Gordon said.

Detroit Casino revenue bounces back, partly  Revenues at Detroit’s three casinos appear to be on the rebound after reopening during the COVID-19 pandemic. MotorCity Casino Hotel, Greektown Casino-Hotel and MGM Grand Detroit reported $87.9 million in total revenue last month while operating at 15 percent capacity due to the pandemic, according to a Wednesday news release from the Michigan Gaming Control Board. September revenue was down 21.7 percent from the same time last year, when the casinos took in $112.3 million. However, revenue increased nearly 27 percent from August. After more than four months of being closed, the casinos reopened the first week in August, taking in $69.3 million that month. Revenue is down 58 percent year to date. Even so, numbers are headed in the right direction, signaling that casinos are in good position to recover from pandemic losses, said Marvin Beatty, chief community officer for Greektown. The three Detroit casinos reported increases in September. | MGM GRAND

WHY IT MATTERS: Public health officials have struggled at times to make contact with COVID-positive individuals who don’t answer or return phone calls.

 LCA TO HOST NCAA MEN’S BASKETBALL REGIONAL THE NEWS: Little Caesars Arena will host for the first time an NCAA men’s basketball regional tournament in 2024, the association announced Wednes-

DETROIT

day. Horizon League members University of Detroit Mercy and Oakland University will serve as host institutions. The bid was submitted by the Detroit Sports Commission, which aims to attract sporting events to the city.

WHY IT MATTERS: There are four sites for the regional tournament, which is the last stage before the Final Four — the flagship event of NCAA basketball. Ford Field hosted the Final Four in 2009.

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2 | CRAIN’S DETROIT BUSINESS | OCTOBER 19, 2020

FINANCE

PEOPLE

Investor lawsuit adds to issues for Credit Acceptance BY NICK MANES

Jeff Donofrio, director of the Michigan Department of Labor and Economic Opportunity, has been named the new president and CEO of Business Leaders for Michigan. He is expected to leave Gov. Gretchen Whitmer’s administration by Dec. 1. | MICHIGAN GOVERNOR’S OFFICE

Jeff Donofrio named new CEO of Business Leaders for Michigan State labor department director to succeed Doug Rothwell BY CHAD LIVENGOOD

Business Leaders for Michigan’s board of directors has named state labor department director Jeff Donofrio as the corporate roundtable group’s new president and CEO to succeed its longtime leader, Doug Rothwell. BLM’s board voted Friday morning to hire Donofrio and start Nov. 30 to allow for a one-month transition as Rothwell gets ready to retire at year’s end after 15 years as CEO of the organization, said DTE Energy Co. Executive Chairman Gerry Anderson, who chairs BLM’s board.

Donofrio, 40, has been Gov. Gretchen Whitmer’s director of the Michigan Department of Labor and Economic Opportunity since August 2019 after four years of leading workforce development efforts in Detroit under Mayor Mike Duggan. Whitmer on Friday named LEO Senior Deputy Director Susan Corbin — a 20-year veteran of state government — to become acting director of the department, effective immediately. Donofrio will continue to serve in an advisory capacity “for a short period to facilitate a smooth transition,” the gover-

nor’s office said in a news release. BLM’s search committee used Los Angeles-based management consulting firm Korn Ferry to conduct a nationwide search for a new CEO after Rothwell announced in late April his plans to retire by year’s end. Rothwell and his wife, Sharon, plan to retire in Chapel Hill, N.C. The CEO search committee viewed Donofrio as a problem-solver who has a track record of tackling big public policy issues affecting Michigan’s workforce and business climate, Anderson said. See DONOFRIO on Page 18

“(THE NATIONAL SEARCH) LANDED UNANIMOUSLY ON JEFF. STYLE IS VERY IMPORTANT FOR US, AND WE THINK HIS STYLE IS AN EXCELLENT FIT FOR THE ORGANIZATION.” — Gerry Anderson, chairman of Business Leaders for Michigan’s board of directors

The screws appear to be tightening on Credit Acceptance Corp. as lawsuits mount over allegations of improper consumer lending practices and potential defrauding of investors. The Southfield-based subprime auto lender (NASDAQ: CACC), which boasts of “changing lives since 1972,” has long been criticized by consumer advocates and now finds itself the target of multiple lawsuits, including from investors and the attorney general of Massachusetts. The company is under attack by state regulators and consumer rights groups for its business practices, and from investors who allege securities fraud. The lawsuits and interviews with consumer-rights advocates paint a picture of a lender that made high profits not by collecting on loans that it doles out, but rather by increasingly squeezing those holding the loans through a process that frequently results in default and repossession of the vehicle. Investors have knocked the company’s stock price down 37 percent from its 52-week peak of $539. The stock was trading for around $338 on Friday. At present there are multiple borrowers of Credit Acceptance who have cases in U.S. bankruptcy courts around the country and allege that the company improperly garnished wages from those who could not make their payments. Similar to many mortgage companies, Credit Acceptance bundles together the loans it makes and sells them to investors. In doing so, the company must document the underwriting of each loan it is selling. An Oct. 2 class action lawsuit piggy-backs on several allegations in the Massachusetts lawsuit and says the company “deliberately and intentionally” tried to pass off to investors loans “that had credit characteristics that were materially worse than the characteristics of the loans” the company outlined in offering documents. See CREDIT on Page 18

REDEVELOPMENT

Amazon fairgrounds project escapes community benefits requirements BY ANNALISE FRANK AND KIRK PINHO

A government slide show on a plan to lure Amazon.com Inc. to the cityowned former Michigan State Fairgrounds site proclaimed last week in yellow, all-caps font: “NO PUBLIC INCENTIVES and NO SUBSIDIES.” Detroit Mayor Mike Duggan and officials have touted that element of the proposed deal: No public handouts, just a redevelopment of a long-vacant swath of land and at least 1,200 jobs. But the State Fairgrounds Development Coalition, which has opposed elements of the Amazon deal, cries foul. The nearly decade-old organiza-

“WE’RE CONCERNED THAT THIS PARTICULAR FIGURE OR INTERPRETATION OF VALUE WAS ARRIVED AT AS A WAY OF NOT TRIGGERING THE COMMUNITY BENEFITS ORDINANCE. “ — Tonya Myers Phillips, a coalition steering committee member and attorney with the Sugar Law Center in Detroit

tion founded to rally for a community-accessible future at the site says the city of Detroit is actually selling its land at a discount, constituting a form of public assistance. There’s no question the developers, Detroit-based Sterling Group and Dallas-based Hillwood Enterprises

LP, aren’t taking city tax incentives to build the $400 million Amazon distribution center. That’s codified in the proposed purchase agreement, which is expected to be considered for Detroit City Council approval Tuesday. But the crux of the coalition’s argument is that while the developers have

committed not to take tax breaks, they are at the same time taking nearly $3.6 million in what the coalition has called in its talking points “backdoor subsidies.” The city is deducting the costs of environmental remediation and site demolition from the price for which it’s selling the land — in essence paying for them. City officials disagree, saying this is typical of an asis purchase and does not constitute a subsidy. “The proposed purchase agreement ... cannot go forward without a major modification of the sale terms — unless the city of Detroit acknowledges that the sale price is clearly less than the appraised value and triggers

Detroit’s Community Benefits Ordinance,” two members of the coalition’s steering committee wrote in a Sept. 7 memo to the wider coalition and City Council members. This disagreement would have some ramifications: If a big development project gets financial assistance from the city — either in the form of tax breaks or land discounted below market value — it must go through the Community Benefits Ordinance process created to mitigate negative impacts on surrounding neighborhoods. The city does not consider this project as triggering it. See AMAZON on Page 17 OCTOBER 19, 2020 | CRAIN’S DETROIT BUSINESS | 3

REAL ESTATE INSIDER

This 83,800-square-foot building at 1960 Technology Drive in Troy was part of a $70 million portfolio sale by Farmington Hills-based Friedman Real Estate. | COSTAR GROUP INC.

Friedman sells Troy Technology Park in one of 2020’s priciest sales

Kirk

PINHO

Former Michigan Attorney General

A fighter for Michigan, and now a fighter for you! Commercial & Business Litigation Administrative Law Employment Litigation

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Friedman Real Estate sold the Troy Technology Park for $70 million two weeks ago to a New Jersey-based buyer, representing one of the largest known deals of its kind this year as we enter the

fourth quarter. Public records don’t shed much light on Mich Troy Technology LLC, which was set up in August to purchase the 426,000-square-foot five-building flex/office portfolio east of I-75 and north of 14 Mile Road. That entity is registered with the state in such a way that makes it more difficult to determine who actually bought the buildings. But CoStar Group Inc., a Washing-

The proposed $36.5 million redevelopment of the R. Thornton Brodhead Naval Armory on the east Detroit riverfront is being met with organized opposition from a group that wants to turn the property into a resource center for veterans. | KIRK PINHO/CRAIN’S DETROIT BUSINESS

From the over 8,000 Detroit Youth who had work experiences this summer.

ton, D.C.-based real estate information service, lists Apex Equity Group as the buyer. Apex Equity Group’s Eli Puretz said his company and Barry Drillman’s Mich Capital Inc., both based in New York, paid $70 million ($164.40 per square foot) for the property. Farmington Hills-based Friedman, which is run by David Friedman, seems to have made out pretty well in the deal: The company paid just $16.5 million ($38.75 per square foot) for the buildings five years ago, according to CoStar. Rich Deptula, national director of brokerage services for Friedman Real Estate, brokered the deal. Puretz said the portfolio is a little over 90 percent occupied and about $3.5 million in basic capital expenditures are planned. “The property is in cruise control,” Puretz said, adding that his company is in the process of shifting its focus from multifamily to office and industrial. “We are going to be buying more in the Michigan market, hunting the Troy market and the smaller suburban markets.” According to CoStar, the buildings in the portfolio are as follows: 1919-1975 Technology Drive, 126,100 square feet, 62 percent leased 1870-1932 Technology Drive, 97,400 square feet, 100 percent leased 1960 Technology Drive, 83,800 square feet, 91.4 percent leased 1835-1891 Technology Drive, 74,700 square feet, 100 percent leased 1960 Ring Drive, 43,700 square feet, unknown occupancy It’s one of the heftier deals this year, one marked by the COVID-19 pandemic sending shockwaves throughout the economy.

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Group pushes back on Brodhead redevelopment

the city-owned R. Thornton Brodhead Naval Armory along the east Detroit riverfront. The property at 7600 E. Jefferson Ave. is the target of a $36.5 million redevelopment by The Parade Co., which would tear down much of the building for its new headquarters, but the Brodhead Association wants the property to be turned into a resource center for active duty, reserve, National Guard and retired veterans and their families. Brodhead Association signage went up last week in front of the property, which the city has targeted for redevelopment for years, but to no avail. It closed in 2003 after being built in 192930. It has fallen prey to scrappers, the elements and vandalism. The armory, which sits on 4.5 acres, was named in 1947 after Capt. R. Thornton Brodhead, who as lieutenant commander of the Michigan naval force lobbied the city and state for construction of the armory. Franklin D. Roosevelt stumped in his first presidential campaign in 1932 there and Joe Louis fought his first amateur bout there that same year (it was a two-round loss to British boxer Johnny Miller). The city issued redevelopment requests in 2003, 2010 and 2014 that produced no results. Jim Semerad, a retired U.S. Navy commander, said in the news release: “The proposed destruction of American military history, and African-American history, would be unforgivable. We owe it to our future generations to restore and preserve this important piece of Detroit, so that it can properly honor our city, and serve as a visible and living reminder of the tremendous sacrifice made by all who have served our nation.” The Parade Co. says it hopes to have fundraising for the project completed and ground broken on the project next year, Crain’s reported earlier this year.

Organized opposition has formed for the proposed redevelopment of

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

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with Lisa Daniels-Goldman, Co-Founder, Jamie Daniels Foundation

Supporting recovery, improving access to effective care Jamie Daniels Foundation was established in memory of your late son—tell us why you decided to start the foundation? Once we became aware of Jamie’s substance use disorder and we needed help, we found it difficult to find reliable resources for evaluating and guiding his treatment. It wasn’t until after Jamie’s death that we learned of the predatory practice that exists in the billion-dollar substance use recovery business. We decided, then, how important it was to share Jamie’s story. By starting the foundation, our hope is to help save lives by providing resources, guidance and support to those struggling with substance use or who know someone who is. What are some projects the Jamie Daniels Foundation has launched since joining forces with The Children’s Foundation in 2018? One of our main focuses has been to support substance use prevention and recovery programs. Through fundraising and generous donations, we have awarded more than $110,000 to various grant partners. For example, Jamie Daniels Foundation funding to Michigan State University’s Collegiate Recovery Program enables students in recovery to have a real college experience in what could otherwise be an unstable environment. Additionally, Leaders Advancing and Helping Communities, a non-profit organization, established a substance use prevention program for ninth and tenth grade students at Edsel Ford High School in

Dearborn, an area struggling with escalating substance use. In the spring we established the COVID-19 Relief Emergency Fund, which has granted more than $30,000 to community organizations that are using funds to provide essential resources and support to individuals struggling with sobriety during these uncertain and isolating times. Emergency grant funding has helped organizations transition to teletherapy and provided subsidies for those living in recovery housing who have lost employment and are unable to pay rent. Earlier this month, we hosted our Second Annual Celebrity Roast with Scotty Bowman as our special guest of honor. The televised and virtual event raised funds and awareness for those battling substance use disorder and served as an opportunity to share information about the disease so we can work to end the associated stigma. In addition to promoting our important message, it was a night full of laughs and entertainment with appearances from Wayne Gretzky, Jack Nicklaus, JK Simmons and former Red Wings players who were coached by Scotty. What other new developments can you share with us? We recently added two new Board of Trustees members, including Margaret Trimer, vice president of strategic partnerships at Delta Dental of Michigan. She really knows how to get a job done and has been incredibly supportive to Jamie Daniels Foundation for the past couple of years—we are very excited to have Margaret join us. We also added our

daughter and Jamie’s sister, Arlyn, to the Board. This was an obvious decision and important to us to include her voice in critical conversations and decision making. What is next for Jamie Daniels Foundation? Our vision is to build long-term, safe, affordable housing for those in recovery as part of a collaboration with the state of Michigan. Such a residence will improve access to trustworthy substance use disorder treatment and recovery services in metro Detroit. Plans are currently in the works and we hope to announce more details soon. What do you think Jamie would think about the work you are doing? I think Jamie would be happy to know that we are making great efforts to help dispel the stigma of substance use disorder. Jamie had a huge heart and always gave of himself to others. I think he would be proud of the work we are doing to make sure those in similar circumstances have access to effective care. The Jamie Daniels Foundation, a Children’s Foundation initiative, provides resources, guidance, and support for those suffering from substance abuse disorder. To learn more about Jamie’s story and Jamie Daniels Foundation, visit JamieDanielsFoundation.org.

ENTREPRENEURSHIP

HAIR WITHOUT HARM

2 UM graduates use invasive plant species to create healthier extensions for Black women BY JENA BROOKER | SPECIAL TO CRAIN’S DETROIT BUSINESS

Two recent University of Michigan graduate students are aiming to reinvent synthetic hair extensions without plastic, in a way that puts an invasive species to productive use. Jannice Newson and Nana Britwum have just created their first prototype of a synthetic hair made specifically for Black women that is plant-based and biodegradable. Their company, Lillian Augusta, is about “hair without harm” — to the environment and to the wearer. “Our hair is going to have the characteristics people desire from synthetic braiding hair,” Newson said, “without the harm, the discomfort, and the plastic pollution.” Instead of using the standard plastic to make synthetic hair, Lillian Augusta is making it out of phragmites, an invasive plant species found in wetlands that disrupts ecosystems. “It’s also causing harm to the economy,” said Newson. They chose the material because of its fibrous composition. It’s local, too. They harvest the phragmites themselves from wetlands owned by the University of Michigan. Traditional synthetic hair can be worn for one to three months. Brit-

Nana Britwum and Jannice Newson of Lillian Augusta | LILLIAN AUGUSTA

“OUR HAIR IS GOING TO HAVE THE CHARACTERISTICS PEOPLE DESIRE FROM SYNTHETIC BRAIDING HAIR, WITHOUT THE HARM, THE DISCOMFORT, AND THE PLASTIC POLLUTION.” — Jannice Newson

wum says, “When you’re done with those braids you toss them, and they end up in a landfill or our oceans.” In addition to creating environmental waste, synthetic hair causes health effects for the customer, because the plastics they are made from are low-quality and carcinogenic, like PVC and acrylonitrile. “You have Black women using this product that have no idea that they’re incorporating this into their scalp,” said Britwum. Michael Godwin, managing director of venture capital firm Resonant Venture Partners, judged Lillian Augusta in the 2020 Michigan Business Challenge “impact” track that they won. He is also one of their mentors through the University of Michigan Desai Accelerator. “There seems to be this really massive market out there that isn’t being addressed effectively,” he said. While first-time company founders are hard to invest in, he said, there’s a precedent in this market — Oakland, Calif.-based Mayvenn specializes in weaves and wigs made of unprocessed human hair. “They’ve already raised $36 million, including a $23 million series B from Essence Ventures,” Godwin said. Because the options are limited in the market, many Black women suf-

fer the negative side effects for a product they still aren’t satisfied with, Britwum said. The alkaline coating on plastic synthetic hair commonly causes allergic reactions, so many women neutralize it before wearing it by soaking it in apple cider vinegar. “It’s ridiculous,” Britwum said. “Why are you buying a product and manipulating it?” Their solution? “We’re just going to bypass that whole step and not include any extra coatings,” said Britwum. Any chemicals that are used in the product are nontoxic. Demand for synthetic hair and wigs is growing. Current projections show the industry will reach $10 billion in revenue by 2023. And with the demand growing so much, human hair, while an environmentally friendly option, can’t meet the demand. It usually comes at a much higher price as well. “There’s a really great market segment where they’re going into where there hasn’t been a lot of innovation in a long time, specifically around how the materials are made,” said William Schleizer, CEO of Delta Institute. Lillian Augusta won Delta Institute’s crowd-judged BOOST competition in 2019. See HAIR on Page 17

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LETTER TO THE EDITOR

Foxconn shows tax credits, subsidies are costly error

GETTY IMAGES | ISTOCKPHOTO

TO THE EDITOR:

COMMENTARY

For women in workforce, a crisis employers must address Kelley

ROOT

Executive Editor mains above 10 percent. These aren’t just numbers on a sheet. Workplaces suffer without women’s voices — and even temporary detours off a career path can shut down opportunities for leadership roles later. For those with non-office jobs, flexible hours or work duties are especially hard to find. I’m fortunate that my own child is in college during this crisis. Many women with school-age children or elderly parents, however, are hitting the COVID caregiving wall head-on. The stress is magnified for attorney Michelle Stephenson, whose 18-year-old son, a senior at Troy High School, has cerebral palsy and visual deficits. Stephenson worked part time before the pandemic but has had to reduce her hours even further to help him with his online schooling. “In order to meet his needs, I’ve had to wait until after school gets out to do my work,” she said. “Some days it’s stressful… I try to maintain what I’ve always had — a 24hour turnaround period (with clients) — but it’s hard to be as timely.” See WOMEN on Page 9

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.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 8 | CRAIN’S DETROIT BUSINESS | OCTOBER 19, 2020

DANIEL SAAD

Numbers are now confirming what many working women, especially mothers, already know: COVID-19 can be a career killer. For the first time, the recession is hitting women harder than men, wiping out decades of workforce progress that are not likely to be recovered — unless companies start thinking about ways to help now. That means recognizing, and accommodating, the pandemic’s unique stresses on female employees. Women have led the recovery in past economic downturns, but COVID has taken a double-barreled toll, as Crain’s Dustin Walsh has reported. Women dominate the industries hit hardest by layoffs — retail, hospitality, education — and they do most of the NOT ONLY ARE domestic caregiving WOMEN AT when schools and day cares are closed. HIGHER RISK Not only are womFOR LOSING en at higher risk for losing their jobs, THEIR JOBS, they’re also leaving THEY’RE ALSO the workforce altogether at an alarming LEAVING THE rate — a decision not WORKFORCE reflected in unemstatistics. ALTOGETHER AT ployment In September, AN ALARMING 865,000 women left the labor force, comRATE. pared with 216,000 men, according to the U.S. Bureau of Labor Statistics. That’s the steepest drop in the past three months and more than the total number of jobs — 661,000 — that the country added for the month. National unemployment for women is at 8 percent; for men, it’s 7.7 percent, the most recent statistics show. The pain is particularly acute for women of color: the unemployment rate for Black and Hispanic women re-

On Sunday, Crain’s ran an Other Voices column from Economic Development Leaders for Michigan calling for more tax credits and other economic development subsidies in Michigan. The very next day, we were all reminded of how catastrophically bad these sorts of “economic development leaders” can be at running economies as news broke that Wisconsin’s $4.5 billion subsidy deal with Taiwanese tech firm Foxconn had fallen apart in missed deadlines and broken promises. Had our economic development leaders had their way back in 2017, it would have been Michigan trying to unwind a deal with Foxconn today after the company rolled back plans, slashed hiring targets by as much as 90 percent and reneged on promises such as a $100 million donation to the University of Wisconsin. Had our state’s leaders prevailed, it would have been Michigan’s communities holding the bag for costly investments in land and infrastructure, having driven families out of their homes and off their land for no good reason. Unfortunately, Michigan didn’t make it out of the Foxconn saga completely unscathed. Part of our leaders’ attempt to lure Foxconn, as well as Amazon’s bait-andswitch “HQ2” project, was the creation of the “Good Jobs for Michigan” tax credit program. While the giant tech companies thankfully spared us the multi-billion-dollar cost of their affections, other companies took advantage of the new tax credits and ran up a bill that reached an estimated $42,000 per subsidized job before a rare display of bipartisan cooperation in Michigan’s legislature thankfully allowed the incentives to sunset last year.

This is the same tax credit program that our economic development leaders called to bring back in their column. Doubling down on bad ideas, they also argued in favor of expanding Tax Increment Financing districts, which are best known in Detroit for such boondoggles as subsidizing the anemic “District Detroit” around Little Caesar’s Arena. It’s unsurprising that people and organizations that are employed to hand out economic development incentives would argue in favor of more economic development incentives. But that’s not leadership. We can see what actual economic development leadership looks like by consid- HAD OUR STATE’S ering Chicago, where new Mayor LEADERS Lori Lightfoot is PREVAILED, IT making TIF reform a priority and taking WOULD HAVE power back from BEEN the same kinds of su b s i d y - a d d i c t e d MICHIGAN’S economic develop- COMMUNITIES ment special interests we have run- HOLDING THE ning things here in BAG FOR COSTLY Michigan. Michigan is fortu- INVESTMENTS. nate to have dodged the Foxconn disaster despite the best efforts of our state’s economic development agencies and the big-business interests they subsidize. Our taxpayers and our communities shouldn’t have to bear the cost of that kind of “leadership” any longer. John C. Mozena President The Center for Economic Accountability Grosse Pointe Woods

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

WOMEN

From Page 8

She told me her law firm, Stevenson & Bullock, has been accommodating, and her years of experience allow her the flexibility to take on cases as her time allows. But she notes the pandemic could be particularly hard on younger women without that foundation — and who are literally and figuratively out of sight in the virtual workplace. “When your bosses don’t see you, how does that impact your ability to move forward in the corporate world?” she asks. “I would see that as a barrier in advancing.” So what can companies do to help? Making workplace flexibility the norm — not the exception — is key, according to an annual study on women in corporate America released last month by McKinsey & Co. and LeanIn.Org. The study, involving more than 40,000 employees at 317 companies, found one in four women are considering downshifting their careers or leaving the workforce during the pandemic — a number “many would have considered unthinkable less than a year ago.” Among the reasons: Working mothers are three times more likely than working fathers to be responsible for household labor and caregiving, the study notes, a disparity that’s even higher for women of color. The imbalance isn’t new. But COVID is making what was once merely difficult now untenable. The most obvious solution — investing in quality, affordable child care — remains a distant dream in the United States, where caregiving is still viewed as a private, individual responsibility unrelated to work. The COVID crisis eventually may force a new appreciation for those challenges, but the damage is being done now. In the meantime, the McKinsey/ LeanIn study recommends steps companies can take, including: ` Making work more “sustainable” by finding creative ways to give employees extra time off; reevaluating productivity goals set prior to COVID-19. ` Recognizing and rooting out gender bias in the workplace, particularly judgment toward mothers, whose family demands are “sometimes literally visible to co-workers over videoconferencing,” the study notes. ` Providing mental health counseling and other support, such as parenting resources. ` Addressing the distinct challenges faced by Black women, who report “a markedly worse experience at work” due to systemic barriers to advancement, according to the study. “This crisis … represents an opportunity,” the study notes. “If companies make significant investments in building a more flexible and empathetic workplace … they can retain the employees most impacted by today’s crises and create more opportunities for women to succeed in the long term.” No single response is a panacea for such an entrenched problem. And reevaluating workplace culture may seem like a luxury when many companies are fighting for their own financial survival. But surviving, and thriving, also depends on retaining a diverse and sustainable pool of employee talent — before it’s too late.

LETTER TO THE EDITOR

Support fresh ideas to keep communities safe TO THE EDITOR: In business and in life, crisis reveals opportunity, and forces us to find new possibilities. One day early in the pandemic, a chance meeting and casual conversation between Detroit business leader David Provost and a young Detroit restaurateur turned to the topic of “food deserts” in the city. COVID-related business closures underscored both the importance of nutrition and the scarcity of grocery options for many Detroit residents. It is not a new problem, in Detroit as well as cities around the

country, but the pandemic brought it into a new light. Together, the two developed a pilot program to test a new model to address food insecurity. With a donation from Provost, the restaurateur, who prefers to remain anonymous, oversaw the preparation of 10,000 nutritious meals delivered over 10 weeks to pandemic shut-in seniors living in the Presbyterian Villages of Michigan communities throughout the Detroit area. The meals, made from fresh produce and staples gathered at Eastern Market and prepared with the help, skill and generosity of Detroit

restaurants, provided delicious nutrition and comfort in a time of need, at minimal cost per meal. The success of this pilot program is important because the COVID pandemic is far from over, and we approach winter this year with tremendous concern for vulnerable populations. But it also is important because food insecurity among Detroit’s vulnerable populations is a problem, and although there are many prominent organizations working to address the issue, there is much to be done. Hard times inevitably remind us that the lifeblood of communities is

relationships. This project was a result of chance meeting between two people who discovered they share a common goal of lifting Detroit up, and a long-standing friendship and partnership that enabled us to come together to fulfill PVM’s mission of supporting seniors. We encourage Detroit’s philanthropic community to continue supporting fresh ideas for keeping our communities safe and healthy as we persevere through these challenging times. Roger Myers President and CEO Presbyterian Villages of Michigan

Hail to the Chief Financial Officer. Steve McKiddy listened attentively as the president of Greenleaf Trust conveyed the wealth management firm’s core values. Steve’s phone pressed closely to his ear, yet what he heard spoke directly to his heart. Being honest and honorable; putting clients’ interests first; doing the right thing always, and setting things right if we err; prizing continuous improvement; and so on. These were the very principals Steve had long strived to uphold. His fast track executive experience with large corporations had been enormously valuable, but he wrestled with the fact that an inviolable rule of publicly traded companies—shareholder interests precede all others—was sometimes out of step with the true north of client needs, commitment to long-term strategy, and his own sensibilities. In the process of leaving one large company for a better position with another, Steve paused when a friend told him about Greenleaf Trust, and how our values were not merely written but purposefully lived. Introductions were made, conversations ensued, interest was expressed, assessments were conducted, and a shared realization set in that the fit was good. In Steve’s heart, he had accepted our offer even before we’d made it. Today, just a few months into his role as Chief Financial Officer, Steve is already managing our growth, assessing new markets, and exploring ways in which we can ever better meet the needs of our esteemed clients. Hail, and welcome, to Steve McKiddy.

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

OCTOBER 19, 2020 | CRAIN’S DETROIT BUSINESS | 9

NONPROFITS

A TIME TO MERGE, A TIME TO CLOSE?

RETROROCKET VIA ISTOCK

As nonprofits face down tough times, hard conversations should happen now, experts say

`BY SHERRI WELCH | Lighthouse of Oakland County had been operating in the red for several years when the idea to team up with South Oakland

Shelter first arose. Though it was on a downward financial trend, its net assets remained firmly in the black. It still had cash, an endowment, its office locations and housing, said Ryan Hertz, CEO of the merged nonprofit now operating as Lighthouse Michigan. In the interests of protecting charitable assets, the Lighthouse of Oakland County board decided to look at other options sooner rather than later. And that made all the difference in the success of the merger and continuation of its efforts to serve the county’s homeless.

10 | CRAIN’S DETROIT BUSINESS | OCTOBER 19, 2020

of operational shifts in the wake of COVID-19, Hertz said. “As soon as an organization realizes it might be a necessary outcome to either dissolve or merge, the conversation about alternatives needs to start on some level,” he said, to preserve as many charitable assets as possible before a nonprofit decimates all of its strength. A downward financial trajectory doesn’t necessarily imply mismanagement, he said. Funding and macroeconomic trends are beyond the control of nonprofit leaders. For nonprofits now facing challenges, “what is in their control is

“AS SOON AS AN ORGANIZATION REALIZES IT MIGHT BE A NECESSARY OUTCOME TO EITHER DISSOLVE OR MERGE, THE CONVERSATION ABOUT ALTERNATIVES NEEDS TO START ON SOME LEVEL.” — Ryan Hertz, CEO, Lighthouse Michigan NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS

The joint nonprofit has been able to build upon its collective programs for the homeless and assets for serving them, Hertz said, following the merger just over a year ago. “Together, we have been able to leverage these assets to raise more funds, expand our range of collective services, and generate additional mission impact for our community by serving more people across a broader geography,” he said. Lighthouse wasn’t facing a pandemic and subsequent revenue hits as nonprofits are now. But there is a takeaway for nonprofits facing financial difficulties and the prospect

how they respond, how quickly they come to terms with what happened and look for viable future arrangements that will allow them to continue to deliver on their mission,” Hertz said. Although there’s often a stigma attached to conversations around strategic alliance, merger or dissolution, there shouldn’t be, he said. Initiating those conversations is not “some kind of failure,” Hertz said. “It’s a sign of courageous leadership.” See NONPROFITS on Page 11

FOCUS | NONPROFITS

NONPROFITS

From Page 10

Closures looming One in every six nonprofits closed between 2009 and 2013, following the Great Recession, said Jeff Williams, director of the community data and research lab at Grand Valley State University’s Dorothy A. Johnson Center for Philanthropy. Leaders expect the pandemic recession to have similar impact. Pressure to consolidate and the threat of closure are on the horizon for nonprofits with short cash reserves and revenue models that are dependent on earned revenue, trends unearthed by a Johnson Center analysis of 990 filings from 2017. The Michigan Nonprofit Association has launched an effort to collect more current data from about 1,000 nonprofits in the state to get a sense of how close they are to running out of money. The Johnson Center is also talking with community foundations and other funders about doing similar surveys of the nonprofits in their local communities and expanding its earlier research of data collected by the government or other parties, Williams said. People’s generosity led to spikes in giving in the spring in response to the crisis, and that has helped some nonprofits meet demands, Kyle Caldwell, president and CEO of the Council of Michigan Foundations, said. “But for others that depend on in-person events and activities, this infusion of temporary support delayed tough issues.” “At some point, that giving curve is going to bend a little, and that’s when we’ll see nonprofits struggling to stay open,” he said. “We know that there’s going to be this cliff for nonprofits as we continue to recover. So the questions on whether nonprofits can survive, should change, merge, go out of business will be before many trustees, staff, funders and donors concerned about nonprofit missions.” The first round of federal stimulus funding also provided a lifeline for nonprofits. But with no guarantee of a second stimulus package coming, operating funds are expected to begin running out for some nonprofits. “No second stimulus means nonprofits — which, on the whole made it through summer with mild to moderate draws on cash and savings accounts — will start drawing on cash more aggressively as we enter the fall,” Williams said. Nonprofits that rely on revenue from things like concerts and museum admission “now know enough to see that the winter will be very long with little to no likelihood of returning to full service (and) full revenue,” he said.

Caldwell

Murray-Brown

The Michigan Nonprofit Association is starting to get calls from nonprofits wanting to talk through options, including dissolution, President and CEO Donna Murray-Brown said. Scenario planning is key to helping nonprofits figure out what their future will look like, she said. “Imagine if this pandemic went on another year and a half or 18 months:

What does that mean for your organization?” Murray-Brown said. That means planning for what could happen not only with finances but also assets and programs, she said. Lighthouse wasn’t yet in dire straits when it initiated talks with South Oakland Shelter, Hertz said. “They were recognizing that without some kind of event to turn around their trajectory, they would eventually have to have that conversation,” he said. “When we’re really passionate about our work, it can take some time to recognize that a merger might present a better future than continuing to retain a sense of ownership and trying to turn things around.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

Requirements for nonprofits that are dissolving Nonprofits that have decided to dissolve should seek legal and accounting consultation to ensure they are meeting all requirements. Requirements include: dissolution questionnaire to the Michigan attorney general.

` Aligning with board or membership voting requirements around dissolution in the nonprofit’s by-laws

` Filing for dissolution through the Michigan Department of Licensing and Regulatory Affairs.

` Giving board members 10 days’ notice of meetings to discuss dissolution. ` Developing a dissolution plan that lists charitable assets and the 501(c)3 organization(s) they will be distributed to, along with all liabilities and plans for paying them. ` Completing and submitting a

` Ensuring federal payroll taxes are paid ` Filing final employment tax returns at state and federal levels. ` Filing final form 990 or 990-EZ. SOURCE: MICHIGAN NONPROFIT ASSOCIATION

New solutions that bring the flexibility employees need.

Scenario planning Conversations about a nonprofit’s outlook should start with organizational assessment, said Caldwell. A number of nonprofit support organizations are collaborating to help develop assessments and other supports like board training, accounting and legal expertise that nonprofits need as they navigate tough times. Those organizations include: the Michigan Nonprofit Association, Co. act in Detroit, Michigan Community Resources, Community Development Advocates of Detroit and Nonprofit Enterprise at Work. “Those are the kinds of tools they’re giving organizations to help them come to these decisions,” Caldwell said

Conﬁ dence comes with every card.®

We’re here for your business with great solutions at a great value. Our improved plans give flexibility to employees and affordability to you where it’s needed most. Blue Cross Blue Shield of Michigan and Blue Care Network have the award-winning member satisfaction* you want with the innovative options you need. Learn about how our improved plans can benefit your business today at bcbsm.com/employers.

*Ranked #1 in Member Satisfaction among Commercial Health Plans in Michigan. For J.D. Power 2020 award information, visit jdpower.com/awards. Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association.

143700_MSG_Campaign_Crains_9-7_F1.indd 1

OCTOBER 19, 2020 | CRAIN’S DETROIT BUSINESS | 11 8/25/20 5:17 PM

REAL ESTATE

Original developer sells 211 West Fort tower downtown 28-story building, rebranded 211 Tower, purchased by joint venture for undisclosed price BY KIRK PINHO

The high-rise at 211 West Fort Street downtown has been sold for the first time in its more than 50-year history. The 28-story tower, which is being rebranded the 211 Tower, in the city’s Financial District was purchased for an undisclosed price on Tuesday by a joint venture between Grosse Pointebased Foster Financial Co. and Tribus, a Grosse Pointe family office, the former said in a news release. More than $10 million in renovations are planned to the building, which was first listed for sale in 2018 for what sources said at the time was about $125 per square foot, or roughly $55 million. A press release says the renovations include improvements to elevator cabs with COVID-19 safety measures, lobby and lighting upgrades, a media wall and three food and beverage options — a cocktail bar, a restaurant and a cafe operated by CoffeeHaus. The sale marks the first major office tower sale downtown in nearly two years, when in December 2018, Birmingham-based real estate investor Zaid Elia paid $24 million for the largely vacant 40-story Cadillac Tower downtown. Foster Financial said in its press re-

The high-rise at 211 West Fort St. in downtown Detroit’s Financial District has been sold for the first time in its nearly six-decade history to a joint venture out of Grosse Pointe. | COSTAR GROUP INC.

lease Wednesday morning that although the property is primarily known around town as a government office building, it has the potential to attract private-sector tenants as well. Co-buyewr Tribus is registered to Ilja Vreeken. It is the family office of the Vreeken family, Foster confirmed. The family purchased New Baltimore-based engineering, develop-

ment and manufacturing company TransNav — at the time part of the FedNav Shipping Group out of Montreal — in the early 1980s and sold it to Groupe Plastivoloire of France in 2018, according to the company’s website. The building’s biggest tenants are the U.S. Attorney’s Office (108,419 square feet); U.S. Bankruptcy Court (67,387 square feet); U.S. Customs &

Border Protection (32,179 square feet); U.S. Department of Labor (22,337 square feet); the U.S. Passport Office (19,400 square feet); and seven other federal tenants (34,692 square feet), according to a 2018 marketing brochure. “While there are secure, government agencies in place that will instill an added level of safety in our building, Fortune 500 companies will also be ex-

cited to call 211 their home,” Doug Noble, partner for Foster Financial, said in the release. And Bradley Foster, a Crain’s 2013 Twenty in their 20s honoree, said this is his company’s “first significant building” in Detroit although it has about 1.5 million square feet of space around Metro Detroit. Steve Morris, principal of brokerage firm Axis Advisors LLC, said he has clients in other Foster Financial buildings in Southfield on Lahser Road. “They fixed them up nice, they managed them professionally and treated their tenants very well,” Morris said. The previous ownership group included principals from Minskoff Grant Realty & Management Corp. out of New York, which built the property in the early 1960s, owning it ever since. Foster said there is a nondisclosure agreement preventing him from revealing the purchase price on the 75-percent occupied building. The Chicago office of Cushman & Wakefield brokered the sale. The Southfield office of CBRE Inc. will be responsible for leasing. Detroit-based District Capital headed up the financing. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

ENTREPRENEURSHIP

PBS show ‘Start Up’ turns spotlight on Michigan entrepreneurs Program centers on how small-business owners adapted during coronavirus pandemic BY JASON DAVIS

Because of the COVID-19 outbreak, taking the show on the road is not an option for PBS’ “Start Up” program, so the creator of the entrepreneurial-focused show will put the spotlight on his home state. “Start Up,” in its eighth season, gives viewers a look inside the world of the American entrepreneur. This season will feature 13 entrepreneurs — 12 of them based in Michigan. The season, according to show creator Gary Bredow, centers on how small-business owners and entrepreneurs have adapted to and navigated their way through what has been a turbulent 2020. The show will air on more than 350 PBS stations nationwide. WTVS-Channel 56 is carrying the show at 1:30 p.m. Sundays, starting Oct. 18. A Michigan-based business is featured on the show each season, Bredow said, but special circumstances have led he and producer Jenny Feterovich to put more of an emphasis on Michigan businesses. “Obviously, we love Michigan, so it was a privilege to film most of the season here,” said Bredow, 44. “But it would have been tough to get the season done if we traveled as much as we usually do for the show with all the restrictions in place and 14-day quarantines in a lot of places. We’re able to show everyone how great our state is.” Bredow and Feterovich, whose production company, Arcadius Production, is based in Ferndale, have roots in Michigan. Bredow is a native of Carleton, and Feterovich, a native of Rus-

“Start Up” creator and host Gary Bredow (right) talks with Quiana Broden, owner of Detroit-based vegan restaurant and cooking school The Kitchen. Broden’s story will be featured on the new season of the PBS series. | ARCADIUS PRODUCTIONS

sia, has lived in the state for 30 years. Feterovich, 45, said she and Bredow make it a point to keep their ears to the streets in search of businesses and entrepreneurs to feature. Viewers will be captivated by the stories told this season, Feterovich said, and representation is a key aspect of the show, too. “We try to keep the show very diverse,” Feterovich said. “You begin to believe you can do a lot of things when you see people on TV who look like you. We want the show to inform, educate and inspire people.” Feterovich said she believes the story of 20-something Yelitsa Jean-Charles will do all of those things. Jean-Charles is the mind behind Healthy Roots Dolls — a company that creates dolls and storybooks that empower young girls, and represent the beauty of diversity. The dolls come in different skin tones, facial features and hair textures to

12 | CRAIN’S DETROIT BUSINESS | OCTOBER 19, 2020

show the beauty of all Black girls. “I never had a doll that looked like me and it wasn’t until my junior year of college that I learned to love my natural hair,” said Jean-Charles, who began working on the product in 2015 and shipped her first doll in 2017. “We’re always open to the opportunity to share our story and mission. A producer for the show reached out looking to learn more about our work empowering girls through beautiful dolls.” Feterovich called Jean-Charles a star. That star has shone bright, as JeanCharles in a few short years has raised nearly $500,000 for her efforts, including taking home first place and the people’s choice award at the 2019 Quicken Loans Detroit Demo Day. Jean-Charles, based in Detroit, is unlike many of the entrepreneurs who will be featured in the new season of “Start Up.” She said her sales increased

from February to June this year. At the other end of the spectrum is Clawson-based Willpower Fitness Group owner William McCray. McCray, 35, was forced to close his doors in March once COVID-19 hit. The gym, McCray said, remained closed for about six months. In that time, though, he shifted toward online instruction and outdoor classes. McCray normally would charge $65 an hour for one-on-one instruction. He charges about half that for the online courses, he said. The longtime fitness enthusiast also offers group classes of 15-20 people for $20 an hour. McCray said, though, that he lost about 75 percent of his business due to the pandemic. In a typical month, McCray said he brings in about $4,000 in membership fees and another $8,000-$9,000 for personal training packages.

“The online courses work and they’re good, but they’re not for everyone,” McCray said. “A lot of people like that in-person interaction. Losing all that business was tough. I wasn’t able to charge any of those membership fees. The bills kept coming up. I still had (utilities) and rent to pay. It was a pretty rough period. It didn’t make up for the money lost by closing, but making the switch to online classes was a lifesaver.” McCray continues to work his way back. His membership is growing, but, he said, some people remain apprehensive about returning to a gym. He’s hopeful the appearance on “Start Up” can give his business a boost. “It’ll definitely help me grow my business and my brand,” McCray said. “Shooting for the show was fun. It allowed me to showcase my passion. I’ve worked for this my whole life.” That passion is what Bredow likes to feature. The creator of “Start Up”, which premiered in 2013, said adapting like McCray did is the key to survival for a lot of small businesses. Feterovich knows that the COVID-19 pandemic has negatively affected a great number of people. She said, though, that great things can come out of tough times. “A lot of big businesses and corporations came out of the 2008 recession,” Feterovich said. “When things like (the pandemic) happen, people start to think out of the box. They re-evaluate things like, ‘Am I supposed to be in this cubicle or should I be doing something else?’” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981

CRAIN'S LIST | NONPROFITS Ranked by 2019 revenue ORGANIZATION, FISCAL-YEAR END ADDRESS PHONE; WEBSITE

TOP EXECUTIVE(S)

TOTAL REVENUE ($000,000) 2019/ 2018

GROSS RECEIPTS ($000,000) 2019

TOTAL EXPENSES ($000,000) 2019

FUNDRAISING EXPENSES ($000,000) 2019

$136.1

$136.5

$0.0

To support people with developmental disabilities to experience a full life with dignity, health and opportunity for growth

$124.6 1

$130.7

$106.6

$0.0

Develops standards, provides product certification and education for public health and safety in the areas of food, water, consumer products and the environment

PURPOSE OF NONPROFIT

COMMUNITY LIVING SERVICES INC. (9/2019)

Annette Downey president and CEO

NSF INTERNATIONAL (12/2019)

Kevan Lawlor president and CEO

JEWISH FEDERATION OF METROPOLITAN DETROIT/ UNITED JEWISH FOUNDATION (5/2019)

Steve Ingber COO

$124.2

$262.4

$100.6

$2.7

To take care of the needs of the Jewish people and build a strong and vibrant Jewish future in Detroit, in Israel and around the world

SAMARITAS (12/2019) 8131 E. Jefferson Ave., Detroit 48214 313-823-7700; www.samaritas.org

Sam Beals CEO

$102.0

$111.7

$99.8

$1.2

To connect people with families and communities, empower them to live their fullest life possible, and create a ripple effect of transformation

FORGOTTEN HARVEST INC. (6/2020)

Kirk Mayes CEO

$94.7

$94.8

$84.0

$2.4

To relieve hunger in the Detroit metropolitan community by rescuing surplus, prepared and perishable food and donating it to emergency food providers

MACOMB-OAKLAND REGIONAL CENTER INC. (9/2019)

Dennis Bott CEO

$90.8

$140.4

$205.3

$0.0

To maximize human potential.

THE HENRY FORD (THE EDISON INSTITUTE INC.) (12/2019)

Patricia Mooradian president and CEO

$82.4

To provide unique educational experiences. To inspire people to learn from America's traditions

GLEANERS COMMUNITY FOOD BANK INC. (09/2019)

Gerald Brisson President & CEO

$76.9

$77.8

$74.7

$3.5

To provide households with access to sufficient, nutritious food, and related resources

DETROIT INSTITUTE OF ARTS (6/2020)

Salvador Salort-Pons director, president and CEO

$76.1

$147.7

$56.0

$3.4

To serve the public through the collection, conservation, exhibition and interpretation of art of a broad range of cultures

UNITED WAY FOR SOUTHEASTERN MICHIGAN (6/2019)

Darienne Hudson CEO

$61.1

$63.0

$63.8

$4.6

To mobilize the caring power of Detroit and Southeastern Michigan to improve communities and individual lives in measurable and lasting ways

DETROIT EMPLOYMENT SOLUTIONS CORP. (6/2019)

Terri Weems president

$61.0

$61.4

$0.0

Delivers workforce services and programs to Detroit businesses and residents

AREA AGENCY ON AGING 1-B (9/2019)

Michael Karson president and CEO

$58.2

$57.6

$0.2

To preserve the independence, dignity and quality of life of older adults, family caregivers and adults with disabilities by supporting a comprehensive service-delivery system and providing access to community-based care

MATRIX HUMAN SERVICES (11/2019)

Brad Coulter president and CEO

$55.2

Committed to helping children, teens, adults and seniors reach selfsufficiency through offering positive hand-up life experiences

ALTARUM INSTITUTE (12/2019)

Lincoln Smith president, CEO and trustee

$50.0

$52.3

$50.8

$1.8

A nonprofit research and consulting organization that creates and implements solutions to advance health among vulnerable and publicly insured populations

GREENPATH FINANCIAL WELLNESS

Kristen Holt president and CEO

$49.4

Provides financial education, housing, student loan and bankruptcy counseling and a debt management program for repaying debt

DETROIT ZOOLOGICAL SOCIETY (12/2019)

Ron Kagan executive director and CEO

$46.9

$59.3

$45.0

$1.4

Celebrating and saving wildlife

STARFISH FAMILY SERVICES (09/2019)

Ann Kalass CEO

$44.6

$45.2

$44.1

$1.1

Provide programs and support services that focus on early childhood education and development, behavioral health wellness and empowered parents

HENRY FORD VILLAGE INC. (12/2019)

Bruce Blalock executive director

$41.0

$40.2

$0.0

Promotion of health for the elderly by providing a continuing care residential community in Dearborn

DETROIT SYMPHONY ORCHESTRA (8/2019)

Anne Parsons president and CEO

$41.0

$90.1

$35.6

$3.0

Musical experiences

THE GUIDANCE CENTER (9/2019)

Kari Walker president and CEO

$40.9

$39.8

$0.4

Offers services to more than 23,000 children and adults every year in Wayne County in these key areas: early childhood, children & youth, adult services, intellectual & developmental disabilities and the KidsTALK Children's Advocacy Center. The organization's mission is: nurture development, foster resilience, cultivate well-being

EASTERSEALS MICHIGAN (9/19)

Brent Wirth president and CEO

$37.4

$38.6

$36.7

$0.5

Easterseals Michigan works to change the way the world defines and views disabilities

YMCA OF METROPOLITAN DETROIT (12/2019)

Helene Weir president and CEO

$37.1

$28.2

$36.1

$1.3

To put Judeo-Christian principles into practice through programs that build healthy spirit, mind and body for all. YMCA is committed to providing experiences that enhance: family and community, child and youth development and health and wellness

SOUTHWEST SOLUTIONS INC. (9/2019) 5716 Michigan Ave., Suite 3000, Detroit 48210 313-481-3103; www.swsol.org

Joseph Tasse interim president and CEO

$34.4

$39.5

$34.8

$0.6

To enhance the quality of life, success and self-sufficiency of individuals and families in Detroit

FOCUS: HOPE (09/2019)

Portia Roberson CEO

$27.4

$27.9

$0.0

To overcome racism, poverty and injustice and to build a community where all people may live in freedom, harmony, trust and affection

CHILDRENS CENTER OF WAYNE COUNTY INC. (9/2019)

Debora Matthews president and CEO

$26.6

$26.2

$26.8

$1.4

Improving the lives of Greater Detroit children and families. Provide therapeutic mental health, behavioral health and child welfare services to more than 7,500 children and families annually

8 9 10

35425 Michigan Ave. W., Wayne 48184 734-467-7600; www.comlivserv.com

789 N. Dixboro Road, Ann Arbor 48105 734-769-8010; www.nsf.org

6735 Telegraph Road, Bloomfield Hills 48301 248-642-4260; jewishdetroit.org

21800 Greenfield Road, Oak Park 48237 248-967-1500; www.forgottenharvest.org

15600 19 Mile Road, Clinton Township 48038 586-263-8700; www.morcinc.org

20900 Oakwood Blvd., Dearborn 48124 313-982-6001; www.thehenryford.org

2131 Beaufait, Detroit 48207 313-923-3535; www.gcfb.org

5200 Woodward Ave., Detroit 48202 313-833-7900; www.dia.org

3011 W. Grand Blvd,, Suite 500, Detroit 48202 313-226-9200; https://unitedwaysem.org 115 Erskine, 2nd Floor, Detroit 48201 313-876-0674; www.DESCmiworks.com

29100 Northwestern Highway., Suite 400, Southfield 48034 800-852-7795; www.aaa1b.org

1400 Woodbridge, Detroit 48207 313-962-5255; www.matrixhumanservices.org 3520 Green Court, Suite 300, Ann Arbor 48105 734-302-4600; www.altarum.org

36500 Corporate Drive, Farmington Hills 48331 248-553-5400; www.greenpath.org 8450 W. 10 Mile Road, Royal Oak 48067 248-541-5717; www.detroitzoo.org

30000 Hiveley Road, Inkster 48141 734-728-3400; www.starfishfamilyservices.org 15101 Ford Road, Dearborn 48126 313-584-1000; www.henryfordvillage.com

3711 Woodward Ave., Detroit 48201 313-576-5100; www.dso.org

13101 Allen Road, Southgate 48195 734-785-7700; www.guidance-center.org

2399 E. Walton Blvd., Auburn Hills 48326 248-475-6400; www.eastersealsmichigan.com

1401 Broadway, Suite 3A, Detroit 48226 313-267-5300; www.ymcadetroit.org

1400 Oakman Blvd., Detroit 48238 313-494-5500; www.focushope.edu

79 W. Alexandrine St., Detroit 48201 313-831-5535; www.thechildrenscenter.com

$155.6

$124.6

$93.6

$99.4

$82.9 1

$168.9

$88.5

$73.3

$64.3

$60.6

$56.3

$54.9

$47.4

$50.7

$47.0

$44.8 2

$39.1

$33.5

$37.6

$43.3

$33.5

$41.3

$26.9

$24.3

Researched by Sonya D. Hill: shill@crain.com | This list of 501(c)(3) status nonprofit organizations is an approximate compilation of the largest such organizations in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Schools, hospitals, churches and associations are not included. It is not a complete listing but the most comprehensive available. Information was provided by the companies or from state or federal filings. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual figures may vary. NA = not available. NOTES: 1. Nonprofit estimate. 2. Nonprofit estimate. Fiscal year ending in September 2019.

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CRAIN'S LIST | FOUNDATIONS Ranked by 2019 assets FOUNDATION ADDRESS; PHONE

TOP EXECUTIVE

ASSETS ($000,000) 2019/2018

TYPE OF FOUNDATION

PURPOSE OF FOUNDATION

THE KRESGE FOUNDATION

Rip Rapson president and CEO

$3,838.9

Private independent foundation

The organization's mission is to promote human progress. Kresge fulfills that mission by dismantling structural and systemic barriers to equality and justice and strengthening pathways to opportunity for low-income people in America’s cities using grant, loan and other investment tools

WILLIAM DAVIDSON FOUNDATION

Darin McKeever president and CEO

$1,313.8

Private independent foundation

To advance for future generations the economic, cultural and civic vitality of Southeast Michigan, Israel and the Jewish community

RALPH C. WILSON JR. FOUNDATION

David Egner president and CEO

$1,267.5 $1,137.9

Private independent foundation

To fund programs aimed at active lifestyles, preparing for success, caregivers and entrepreneurship and economic development in Southeast Michigan and Western New York

COMMUNITY FOUNDATION FOR SOUTHEAST MICHIGAN

Mariam Noland president

$1,008.7

Community foundation

Creates permanent, positive change in southeast Michigan through philanthropy

JEWISH FEDERATION OF METROPOLITAN DETROIT/ UNITED JEWISH FOUNDATION

Steve Ingber COO

$667.3

Community foundation

The foundation owns, manages and invests Jewish communal assets; it allocates funds for community needs and ensures that assets are available to promote the continuity of the Jewish people

THE FRED A. & BARBARA M. ERB FAMILY FOUNDATION

John Erb chairman

$300.0

Private independent foundation

Advancing an environmentally healthy and culturally vibrant metropolitan Detroit and a flourishing Great Lakes ecosystem

MAX M. & MARJORIE S. FISHER FOUNDATION

Douglas Bitonti Stewart executive director

$285.5

Private independent foundation

Enrich humanity by strengthening and empowering children and families in need

MICHIGAN HEALTH ENDOWMENT FUND

Paul Hillegonds CEO

$242.2

Private independent foundation

Seeks to improve the health of Michigan residents and reduce the cost of health care, with special emphasis on children and older adults

HUDSON-WEBBER FOUNDATION

Melanca Clark president and CEO

$178.8

Private corporate foundation

To improve the vitality and quality of life of the metropolitan Detroit community

MCGREGOR FUND

Kate Levin Markel president

$174.2

Private independent foundation

The geography of principal interest is the city of Detroit and Macomb, Oakland and Wayne counties, and its grantmaking prioritizes basic needs, recovery and restoration, and transformational skill building opportunities for teens and adults in poverty

VERA AND JOSEPH DRESNER FOUNDATION

Virginia Romano CEO

$149.8 $141.7

Private independent foundation

To transform lives through grants focused on health, youth and family and animal welfare

ANN ARBOR AREA COMMUNITY FOUNDATION

Neel Hajra CEO

$147.5

Community foundation

To enrich the quality of life in our region through knowledgeable leadership, engaged grantmaking and creative partnerships with donors to make philanthropic investments and build endowment

THE CARLS FOUNDATION

Elizabeth Stieg CEO, executive director

$130.3

Private independent foundation

Supports children's medical, including health care facilities and programs with emphasis on hearing impairment, human services for children, and preservation of natural areas through conservancies

THE CHILDREN'S FOUNDATION 2

Lawrence J. Burns president and CEO

$129.6

Private independent foundation

Focused on the health and well-being of the children of Michigan and their families by working in collaboration with other organizations in the community. Current areas of focus for the foundation include mental health, nutritional wellness, abuse and neglect, oncology and cardiology research and injury prevention

FORD MOTOR CO. FUND

Mary Culler chairman and president

$82.3

Private corporate foundation

To support initiatives and institutions that enhance or improve opportunities for those who live in communities where Ford Motor Co. operates

EASTERN MICHIGAN UNIVERSITY FOUNDATION

Bill Shepard VP for advancement and executive director

$81.3

Private independent foundation

To increase sources and amounts of private funds for the benefit of EMU and support student scholarships, programs, facility enhancement and faculty research and development

ETHEL AND JAMES FLINN FOUNDATION

Andrea Cole executive director and CEO

$66.0

Private independent foundation

To improve mental health services for children, adolescents and adults, with a primary focus on Wayne, Oakland, Macomb and Washtenaw counties

THE LLOYD AND MABEL JOHNSON FOUNDATION

Dan Miller executive director Gordon Kummer president

$60.9 $61.6

Private independent foundation

To reduce human suffering and enrich quality of life through health and education services and Christian ministries in Michigan

BLUE CROSS BLUE SHIELD OF MICHIGAN FOUNDATION

Audrey Harvey executive director and CEO

$59.9

Community foundation

To support health care research and innovative programs designed to improve the health of all Michigan residents

THE JEWISH FUND

Margo Pernick executive director

$59.3

Public foundation

To support the overall health care and social welfare needs of the Jewish and general communities in the greater Detroit metropolitan area

DEROY TESTAMENTARY FOUNDATION

Julie Rodecker president

$58.8

To provide funding support for youth and adult welfare, community enrichment, education, health care, and arts & culture, to improve the quality of life and promote the well-being of individuals in the community

THE HOPE FOUNDATION (THE HOPE FOUNDATION FOR CANCER RESEARCH)

Johanna Horn president

$58.2

A public charity with the mission of raising and contributing funds for the treatment and prevention of cancer. The Hope Foundation supports the work of SWOG, one of the largest Cancer Clinical Trials Cooperative Groups, funded in part by the National Cancer Institute

2 3

3215 W. Big Beaver Road, Troy 48084 248-643-9630

P.O. Box 1688, Birmingham 48012 248-788-6500

3101 E Grand Blvd., Suite 200, Detroit 48202 313-885-1895

333 W. Fort St., Suite 2010, Detroit 48226-3134 313-961-6675

6735 Telegraph Road, Bloomfield Hills 48301 248-642-4260 215 S. Center St., Suite 100, Royal Oak 48067 248-498-2503

2 Towne Square, Suite 920, Southfield 48076 248-415-1444

7927 Nemco Way, #270, Brighton 48116 517-374-0031

333 W. Fort St., Suite 1310, Detroit 48226 313-963-7777

333 W. Fort St., Suite 2090, Detroit 48226 313-963-3495

6960 Orchard Lake Road Suite 149, West Bloomfield Twp. 48332 248-785-0299

301 N. Main St., Suite 300, Ann Arbor 48104 734-663-0401

6001 N. Adams Road, Bloomfield Hills 48304 248-385-5517

3011 West Grand Blvd., Suite 218, Detroit 48202 313-964-6994

1 American Road, Dearborn 48126 888-313-0102

112 Welch Hall, 850 W. Cross St., Ypsilanti 48197 734-484-1322

333 W. Fort St., Suite 1950, Detroit 48226-3134 313-309-3436

10315 Grand River, Suite 301, Brighton 48116 810-229-6380

600 E. Lafayette Blvd., Detroit 48226

6735 Telegraph Road, Bloomfield Hills 48301 248-203-1487

26999 Central Park Blvd., Suite 160, Southfield 48076 248-827-0920

24 Frank Lloyd Wright Drive, Suite 3600A, Ann Arbor 48105 734-998-6888

$3,724.6

$1,136.0

$872.6 1

$681.2

$299.2

$269.1

$189.0

$161.8

$173.6

$127.4

$127.6

$113.2

$125.0

$85.9

$60.4

$55.0

$61.6

$53.8

$53.7

Researched by Sonya D. Hill: shill@crain.com | This list of largest grant-making foundations is an approximate compilation of the largest such organizations in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a

complete listing but the most comprehensive available. Information was provided by the foundations or from state or federal filings. P = private foundation, CS = company-sponsored foundation, CO = community foundation. No. 6 on last year's list, with 2017 assets of $477.6 million was The Skillman Foundation, however their latest Form 990 was not available before publication. NOTES: 1. From foundation's audited report. 2. Formerly Children's Hospital of Michigan Foundation

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CRAIN'S LIST | COMPREHENSIVE MULTIYEAR CAMPAIGNS Ranked by campaign goal ORGANIZATION NAME CAMPAIGN NAME

CAMPAIGN GOAL ($000,000)

AMOUNT RAISED AS OF SEPT. 2020 ($000,000)

Jewish Federation of Metropolitan Detroit/United Jewish Foundation Centennial Campaign

$250.0

$247.0

Jan. 1, 2012

Jan. 1, 2021

To endow the next century of the Jewish community

Detroit RiverFront Conservancy Comprehensive Campaign

$150.0 1

In the quiet stage of a $100 million-$150 million campaign that will include the money to redevelop 5.5 miles of the riverfront from Gabriel Richard Park to the Ambassador Bridge, beginning with West Riverfront Park, which will feature a variety of new attractions designed to bring people down to the riverfront

Oakland University ASPIRE.ADVANCE.ACHIEVE. The Campaign for Oakland University

$150.0

$77.4

July 1, 2016

June 30, 2024

The campaign has five focus areas: Student success; teaching research and discovery; campus expansion; community collaboration; and innovative programs

The Henry Ford (The Edison Institute Inc.) The Innovation Project

$150.0

Oct. 10, 2018

June 1, 2023

Will help The Henry Ford build digital and experiential learning tools, programs and initiatives to advance innovation, invention and entrepreneurship and launch the workforce of tomorrow

Detroit Institute of Arts DIA NOW, The Campaign for the Detroit Institute of Arts Endowment

$125.0

$31.0

July 1, 2018

Dec. 31, 2022

Unrestricted operating endowment; Phase II of long-term, endowment campaign 2

Detroit Symphony Orchestra DSO Endowment Campaign

$125.0

$55.3

Jan. 1, 2014

Jan. 1, 2023

The goals are to raise at least four times the operating budget and maintain no lingering capital debt.

University of Detroit Mercy The Campaign for University of Detroit Mercy

$100.0

Jan. 1, 2012

Dec. 31, 2020

The fundraising campaign for academic programming, faculty support, student scholarships, facility renovations and expansions, athletics and special projects

Motown Museum Motown Museum Expansion Campaign

$50.0

$30.0

Oct. 17, 2016

To fund an expansion adding 40,000 square feet. Planned improvements include new interactive exhibits, a theater, recording studios and an enlarged museum store to the current 10,000-squarefoot attraction

Hospice of Michigan Inc. Life Matters

$34.0

Jan. 1, 2016 3

Dec. 31, 2020 3

Campaign support palliative care, expansion of our hospice services, pediatric hospice and education and community outreach

Fisher House Michigan Fisher House Ann Arbor & Fisher House Detroit

$20.0

$7.6

A "home away from home" for the families of military service members and veterans, while the veteran is in medical treatment at the VA Ann Arbor and VA Detroit Medical Centers

McLaren Macomb Foundation for the Future

$20.0

$10.0

Jan. 1, 2017

May 31, 2020

Trauma and critical care five-story building and in-patient rehabilitation unit

Presbyterian Villages of Michigan/Presbyterian Villages of Michigan Foundation PVM Foundation Strategic Plan

$15.0

$7.3

Jan. 1, 2018

Dec. 31, 2022

Expanding alternatives to keep older adults independent, starting with three senior living villages in Southeast Michigan. Resident enabling technology to increase independence; fall reduction

Ascension Providence Hospital 4 Intensive Care Unit (ICU) Capital Campaign

$10.0

$3.5

Jan. 1, 2019

Dec. 31, 2021

To renovate and expand the existing ICU. Priorities include enhanced physical space, investments to elevate and sustain a program of excellence, and the acquisition of the latest technology and equipment to provide unparalleled care for patients within the Ascension Providence community and southeast Michigan region. Included in the ICU fundraising campaign is the renovation of our Neonatal Intensive Care Unit (NICU)

The Empowerment Plan Capital Campaign 5

$8.0

To produce sleeping bag coats and create jobs for the homeless with its employment and education program.

Hospice of Michigan Inc. Give a Quarter Back 6

$5.0

Sept. 14, 2018

Dec. 31, 2020

Public fundraising to support a range of specialized programs and services

Boys & Girls Club of Troy Capital Campaign

$4.0 7

$0.2

Jan. 1, 2019

To fund construction of a dedicated teen center

Easterseals Michigan The Miracle League of North Oakland Concessions Stand

$0.4

Sept. 1, 2017

Sept. 30, 2021

Raising funds to construct a new fully accessible concessions stand for our newest Miracle League Field. This field called The Miracle League of North Oakland is located in Friendship Park in Lake Orion. Partners in the project include Independence Township and Orion Township. This league will remove the barriers that keep children with disabilities off the baseball field and let them experience the joys of American's favorite pastime

CAMPAIGN START DATE

TARGETED ENDING DATE

WHAT THE CAMPAIGN IS PAYING FOR

Researched by Sonya D. Hill: shill@crain.com | This list is an approximate compilation of the largest comprehensive multiyear campaigns in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the organizations. NA = not available. NOTES: 1. As reported by Crain's. 2. The DIA Open Forever was Phase I of an unrestricted operating endowment campaign and ended June 30, 2018. It raised $65 million as of September 2018. 3. Crain's estimate. 4. Now part of Ascension Michigan. Providence Hospital and Providence Park Hospital combined in 2016 and now operate as Providence-Providence Park Hospital. 5. In the process of launching a larger comprehensive campaign. 6. Give a Quarter Back is the theme of the public portion of the Life Matters campaign. 7. As reported by Crain's. Currently in the quiet phase.

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CRAIN'S LIST | PHILANTHROPIC GIFTS Ranked by gift amount COMPANY ADDRESS PHONE; WEBSITE

GIFT AMOUNT ($000,000)

GIVER

GIFT PURPOSE

University of Michigan Detroit Center for Innovation Detroit detroitcenterforinnovation.com/

$100.0

STEPHEN ROSS

The $100 million philanthropic gift is to launch the fundraising campaign to begin construction of the Detroit Center for Innovation. The center will be located on the former Wayne County Jail site. The first phase of the 14-acre Detroit Center for Innovation is expected to break ground in 2021.

University of Michigan Ann Arbor umich.edu

$30.0

RONALD AND EILEEN LAPPIN WEISER 1

A pledge from Ron and Eileen Weiser for diabetes research and to establish the Elizabeth Weiser Caswell Diabetes Institute, named for their daughter who has two sons and a husband with Type 1 diabetes. Ron Weiser is the founder of McKinley Associates, an Ann Arbor real estate investment firm. He is an alumnus and member of the university's Board of Regents.

Henry Ford Health System 1 Ford Place, Detroit 48202 800-436-7936; www.henryford.com

$25.0

CHRIS AND LISA JEFFRIES

Henry Ford Health System plans to expand its life-extending precision medicine program in Detroit after the Jeffries family pledged $25 million to create a specialized center. This is the largest single gift from an individual in the health system's 105-year history.

Beaumont Health 2 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$21.0

STUART H. BLANCK

Stuart H. Blanck Emergency Center at Beaumont Hospital, Royal Oak

University of Michigan Ann Arbor 48109

$20.0

STUART AND MAXINE FRANKEL 1

The university received $20 million from Maxine and Stuart Frankel through the Maxine and Stuart Frankel Foundation to support the Maxine and Stuart Frankel Innovation Initiative, which will support the research and development of new therapies at Michigan Medicine in collaboration with other institutions. Stuart Frankel leads the Stuart Frankel Development Company, a real-estate development firm in Troy, Mich. The couple both graduated from the university.

Michigan State University 426 Auditorium Road, East Lansing 48824 517-355-1855; www.msu.edu

$19.5

DOUG MEIJER 1

The university has received $19.5 million from Doug Miejer through the Meijer Foundation to establish a theranostics clinic in the College of Human Medicine. The building that houses the clinic will be named for Meijer, who is a former co-chairman of the Meijer supermarket chain.

University of Michigan Ann Arbor umich.edu

$10.0

RONALD WEISER 1

The gift is to create a real-estate center at the Stephen M. Ross School of Business and will focus on practical courses in finance, law, investing, asset and property management and sustainable development. Weiser is the founder of the Ann Arbor real estate investment firm, McKinley Associates and also a regent and alumnus of the university.

Beaumont Hospital Grosse Pointe 468 Cadieux Road, Grosse Pointe 48230 313-473-1000

$5.0

JAMES AND PATRICIA ANDERSON

To launch a $19 million project to expand the surgical center that will be named for Urban Science CEO James Anderson and his wife Patricia. The $5 million gift is the largest ever made to the hospital.

Beaumont Health 2 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$2.1

ROBERT SKANDALARIS

Center for Children with Cancer and Blood Disorders, Beaumont Hospital, Royal Oak

Beaumont Hospital, Troy 44201 Dequindre Road, Troy 48085 248-964-5000

$1.3

MR. AND MRS. ANTHONY V. BATTAGLIA

Neonatal Intensive Care Unit Expansion, Beaumont Hospital, Troy

Beaumont Breast Care Center 4491 Venoy Road, Wayne 48184 __-beaumont.org

$1.3

DRS. HARRIS, BIRKHILL, WANG, SONGE & ASSOCIATES, P.C.

Beaumont Breast Care Center, Wayne

Beaumont Health 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$1.1

DR. DIANNE MCBRIEN, MARCIA MCBRIEN, DR. MELISSA MCBRIEN, AND VICTORIA MCBRIEN

The Florence & Richard McBrien Pediatric Neuroscience Center

Beaumont Health 2 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$1.0

DR. AND MRS. EDWARD E. HAGENLOCKER

Sylvia & Edward Hagenlocker Cancer Genetics Program Support, Beaumont Hospital, Royal Oak

Beaumont Health 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$1.0

MICKEY SHAPIRO

Sara and Asa Shapiro Heart and Vascular Intensive Care Unit

Beaumont Health 2 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$1.0

MR. AND MRS. MARKUS ERNST

Max & Debra Ernst Heart Center, Beaumont Hospital, Royal Oak

Beaumont Health 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$1.0

THE DOMINIC AND FRANCES MOCERI FAMILY

Frances and Dominic Moceri Learning Center Endowment

Beaumont Health 26901 Beaumont Blvd., Southfield 48033 248-898-5000; www.beaumont.org

$1.0

MR. AND MRS. STEPHEN R. POLK

Beaumont Center for Human Development

Researched by Sonya D. Hill: shill@crain.com | This list is an approximate compilation of the largest philanthropic gifts made in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Anonymous gifts are not included because the

purpose of the list is to highlight specific givers and philanthropists and not just the gift amounts. It is not a complete listing but the most comprehensive available. NOTES: 1. From The Chronicle of Philanthropy. 2. Now known as Beaumont-Royal Oak. Became part of Beaumont Health in September 2014.

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HAIR

From Page 6

Amazon.com Inc. is expected, pending city approvals, to occupy a 3.8 million-square-foot warehouse center on 78 acres of the former Michigan state fairgrounds site in Detroit at Woodward Avenue and Eight Mile Road. | LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

AMAZON

October 19, 2020

From Page 3

The coalition’s assertion, if true, would also call into question the city’s rhetoric surrounding the deal and its lack of public buy-in.

What is market value? Pending City Council approval, Sterling Group and Hillwood would buy 138 acres of the former state fairgrounds near Woodward Avenue and Eight Mile Road. Then they would start late this fall to redevelop 78 of those acres for what would be tenant Amazon’s largest metro Detroit location, creating 1,200 jobs. “This city has never had a new building built for $400 million without tax breaks or incentives,” Duggan said during the proposal’s Aug. 11 announcement. “This is groundbreaking territory for the city of Detroit.” But the story is a bit more complicated than that. State Fair Partners LLC, an entity the developers registered, would wire the city of Detroit $16 million when the deal closes. That includes $9 million for the property “as-is,” plus $7 million to fund building a new transit center to replace one that will need to be demolished. The coalition argues that $9 million property price isn’t market value. An appraisal of the property in March by Integra Realty Resources valued it at $11.07 million. That figure comes after subtracting $1.51 million in environmental remediation costs. From that base value, the city of Detroit also deducted $2.64 million for the cost to demolish the former fairgrounds’ buildings and just less than $600,000 for land being retained by the city for roads, which the developer’s tenants would use but the city would maintain, per the coalition memo. That brings the land value down to $7.84 million. The city and developers then agreed to $9 million. The coalition interprets the appraised value as the original $12.58 million — $3.58 million over the final proposed price. “We’re concerned that this particular figure or interpretation of value was arrived at as a way of not triggering the community benefits ordinance. The CBO would be applicable if the land was sold below market value rate,” said Tonya Myers Phillips, a coalition steering committee member

“THE CITY IS SELLING THE PROPERTY AS-IS. SO, CALCULATING AN AS-IS PRICE USING DEDUCTIONS — JUST AS THE STATE DID WHEN IT SOLD THE PROPERTY TO THE CITY LAST YEAR — IS NOT SUBSIDY.” —Nick Khouri, Detroit’s group executive for jobs and economy

and attorney with the Sugar Law Center in Detroit. “We believe that the discount ... is a form of subsidy.” Asked to consider whether State Fair Partners should undergo the community benefits process, Detroit’s law department said no, that the final price of $16 million “supports only one conclusion,” that the property is not being “priced below market rates,” according to a memo from Bruce Goldman, chief assistant corporation counsel for Detroit, to the city Planning Commission. Nick Khouri, Detroit’s group executive for jobs and the economy, said in an emailed statement that the appraisal is in line with a previous one, in 2018, when the city originally bought the property for $7 million. “The City is selling the property asis,” Khouri said in the statement. “So, calculating an as-is price using deductions — just as the State did when it sold the property to the City last year — is not subsidy.”

Deal details Also, the city of Detroit’s proposed land purchase agreement with Amazon’s developers does not actually assure that public buy-in remains at zero. The text of the deal says: “Purchaser agrees not to request from seller any economic incentives applicable to the property.” It’s an agreement between the purchaser and the seller — the developers and the city, as the Detroit City Council Legislative Policy Division noted in its Sept. 17 review of the deal. It doesn’t appear to prohibit Hillwood and Sterling from seeking public funding at the state or federal level. But neither the developers nor Amazon are asking for tax incentives for the project as of late last week, Arthur Jemison, Detroit’s group executive for housing, planning and development, said during a presentation to a City Council committee. A representative of the Michigan Economic Development Corp., which offers state-level economic assistance, also told Crain’s

in late September that there were no conversations underway about potential incentives for the distribution center. Amazon, the world’s largest publicly traded retailer according to Forbes, has sought and received at least $21 million in state incentives through the MEDC. That includes a $4.5 million grant in September 2017 from the Michigan Strategic Fund for its $40 million Shelby Township distribution center, a $5 million Michigan Business Development Program grant for its $140 million distribution center in Romulus and a $7.5 million grant from the program for its $90 million center in Livonia. The fairgrounds property wouldn’t be the corporation’s first project to proceed without direct local tax incentives. In Pontiac, a 3.5 millionsquare-foot facility is rising on the former site of the Pontiac Silverdome. “Their scrutiny of Pontiac was to determine our capability of handling the kind of project they wanted to bring and the speed at which they wanted to bring it,” Mayor Deirdre Waterman said. “The only ask of us was to be able to move speedily, to have the departmental capacity and efficiency to move the project along at the rapid pace they required to develop this project, but there were no financial incentives that were asked for.” Richard Hosey, a former senior vice president for Bank of America NA who now owns Detroit-based Hosey Development LLC, said public pots of money for development “have become very thin” and that for a company the size of Amazon, seeking public subsidy may not be worth it from a public relations standpoint. “They may qualify (for some incentives) but they might pass it up because there would be too much negative potential PR,” he said. Contact: afrank@crain.com; (313) 446-0416; @annalise_frank Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

With their extensive market analysis, including over 100 customer interviews, Schleizer says they have “real growth potential.” Schleizer said Lillian Augusta won the crowd over because their product was unique from multiple perspectives: the makeup of the product, impact on the industry, and the environmental benefit. “You have these three things that aligned really well,” he said. To make the product they were using space in a University of Michigan art studio, but had to adjust when COVID-19 hit. So, they created a makeshift lab in their basement, and used wooden tools made by an artisanal woodworker. Their prototype wasn’t exactly what they imagined, without access to machinery and equipment. But, they were determined to stay on track to producing their first prototype this year. Newson and Britwum got the CRAIN ’S Dproject ETROIT B USINESS idea for the when they met at a conference in Seattle. They were complaining about synthetic braids: the itchiness factor, how they cause acne breakouts, their environmental impact and other complications. When they found out they both attended the University of Michigan, they decided to team up and do something about it. Neither of them had any prior product development or business experience, but found help along the way through business competitions and fellowships, like Delta’s BOOST competition, and the Carbon 180 Entrepreneur in Residence Fellowship. “They found a novel way to take something that is normally burned, and turned it into a product that can now be used,” said Peter Minor, fellowship manager

of the Carbon 180 Entrepreneur in Residence fellowship. With this fellowship they were awarded $125,000 and mentorship. One challenge they’ll face, like many businesses do, Minor says, is aligning their supply chain. Additionally, he said, “This has never been done before this way.” For this reason they will encounter unforeseen problems along the way, that he said, “are going to come from this kind of novel development.” Since graduating in May, when Newson received her master’s in Conservation Ecology, and Britwum received her master’s in Molecular, Cellular and Developmental Biology, the two are both working full time on Lillian Augusta to continue to develop their technology and experimenting with different fibers before their goal release date in early 2021. Before their product launch, they plan to expand their team with the hire of a chief financial officer and a chief marketing officer, and to secure the provisional patent they filed for in 2020. Their goal isn’t just to offer more options today, but to create awareness around the issue, and create more options for Black communities for future generations. Britwum said if she hadn’t learned about this, she would’ve used the same products on her future kids, as her parents did with her. She says, “It has to stop somewhere.” Godwin says the hair is just the beginning, and their business could expand to producing many other products. “Once you have these fibers in production, they can really be used for all kinds of stuff,” he said. “I think they’re going to build a brand that really touches a lot of people who are really in an underserved market right now,” said Godwin. “That’s something that’s not easy to do.”

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MVP Collaborative, a full-service marketing communications agency, is pleased to welcome Sharon Ricketts as Vice President of Strategy and Business Development. In this role, Sharon will serve on MVP’s core leadership team, provide strategy and planning services to its existing clients, and attract new brands to the agency. Sharon was previously the Director of Strategy and Planning at George P. Johnson in Auburn Hills.

HealthBridge is pleased to announce the appointment of Dean Ferris as Chief Growth Officer. In this role, Dean will be responsible for sales, distribution and partnership development. HealthBridge, a first-of-its-kind employee financial security benefit solution, provides a financial resource to help bridge the gap between the high cost of healthcare and an employee’s financial wellbeing. HOSPITALITY / TOURISM

ARCHITECTURE

Hotel Investment Services, Inc

Building Conservation Associates, Inc.

Hotel Investment Services, Inc. (HIS) is pleased to announce that Sam Barnwell has been recently promoted to Area Director for the Mackinac Island properties of which HIS is the hotel management company. Sam will be responsible for operational oversite of both Harbour View Inn and the Inn at Stonecliffe. In addition, he will continue his duties as the General Manager at Hotel Iroquois. Sam’s leadership skills and passion for hospitality confirm that he is the perfect choice to lead this team.

Building Conservation Associates, Inc. is pleased to announce Erica Morasset has been named Regional Director of its new office in Detroit, Michigan. Erica brings a broad range of conservation and preservation expertise having worked under the direction of Raymond Pepi, BCA’s founder and President, in New York City for the past 12 years. The move marks Erica’s return to the Metro Detroit area. The Detroit office is BCA’s third branch and we are proud to offer a local presence in the Midwest. CONSULTING

M3Linked Mary Jane “MJ” Nowak will lead the M3Linked Detroit Community as Executive Director. MJ will meet and facilitate impactful connections and collaborations with and between high-level entrepreneurs who are inventors, investors, CEOs, and startup founders. She is responsible for all planning, coordinating, and conducting weekly and special Community events.

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September 2, 2019 | crainsdetroit.com

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Dandridge Floyd, 37

UNDER

Assistant Superintendent of Human Relations and Labor Relations, Oakland Schools

October 30, 2017 | crainsdetroit.com PHOTOGRAPH BY JACOB LEWKOW FOR CRAIN’S

UBS to open downtown Detroit office By Annalise Frank

October 30, 2017 | crainsdetroit.com

• UBS plans to open wealth management office in Detroit in mid-2018 • Office to include 6,000-squarefoot space30,nonprofits and civic October 2017 | crainsdetroit.com

UBS to open downtown Detroit office By Annalise Frank

groups • UBS plans to open wealthcan use free of charge • Bedrock-owned buildings office in Detroit “I’m impacting lives now. management I know undergoing renovations in mid-2018 6,000-squarethe effect food insecurity• Office had onto includeUBS plans to open an office in downfoot space nonprofits and civic Detroit in mid-2018, the company Annalise Frank growing groups meByand my peers up, andcan usetown free of charge announced Monday. • Bedrock-ownedUBS buildings Group AG’s U.S. and Canadian UBSan plans to open wealth this•was opportunity toundergoing make a renovations wealth management business, New Jermanagement office in Detroit sey-based Wealth Management change I wish an adult UBScould plans to open an office UBS in downin that mid-2018 Americas, to lease 13,000 square UBS will lease 13,000 feet from Bedrock LLC starting around mid-2018 in two buildings: the Grintown Detroit in mid-2018, theplans company • Office to include 6,000-squarefeet on the connected sixth floors of nell Building (center left) at 1515 Woodward Ave. and the Sanders Building (center right) at 1529 have made for me.” announced Monday. foot space nonprofits and civic buildings at 1515 Wood- Woodward Ave. Group AG’sneighboring U.S. and Canadian groups can use free UBS of charge ward Ave. and Fourteen metro Detroit employees don’t really have adequate resources wealth management business, New 1529 Jer- Woodward Ave. • Bedrock-owned buildings The twoManagement buildings built around 1900 are will move to the downtown office to or adequate office space to host dosey-based UBS Wealth undergoing renovations by Detroit-based will lease LLC 13,000 feet from Bedrock LLC starting around mid-2018 buildings: Grin- meetings or things nor events the or board start, but the office has the capacity toin two Americas, plans toowned lease 13,000 square UBSBedrock nell Building (center at 1515 Woodward andnew the Sanders Buildingalong (centerthose right) at 1529 Bush said. and are undergoing said left) lines,” hold another six toAve. eight staff memon inthe connected sixth floors of renovations, Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All RightsUBS reserved. plans to open anfeet office downAve. for bers, Bush said. It will act as an extension John Bush, 60, WoodMichiganWoodward market head UBS’s investment in the new ofneighboring buildings at 1515 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD1134 town Detroit in mid-2018, the company UBS Wealth ManagementFourteen Americas.metro of fice will resources be “significant,” he said, as its the other wealth management offices. don’t really have adequate Detroit employees announced Monday. ward Ave. and 1529 Woodward Ave. “The real impetus open atonew The twoCanadian buildings built around 1900 arefor us “uniqueness Bush is based Birmingham office space to hostcomes do- at a price.” He said willto move the downtown office out to ofortheadequate UBS Group AG’s U.S. and office inBedrock Detroit is to support what’s owned by Detroit-based LLC he could or not yet provide an estimate but travels to to the will meetings norothers eventsand or board things start, but the goofficeoffice, has the capacity wealth management business, New Jering renovations, on in the city, ” saidhold Bush, a Detroit and are undergoing said on the be spending in thealong Detroit branch. those lines,” Bush said.cost of the build-out, as some another six to eight new stafftime memsey-based UBS Wealth Management nativemarket who grew City. “We John Bush, 60, Michigan headup forin Garden have yet The location have a less UBS’s investment in the new of- to be finalized. said. will act asDetroit an extension fromBush Bedrock LLCItstarting around mid-2018 in twowill buildings: the Grin- contracts Americas, plans to lease 13,000 square UBS will lease 13,000 feetbers, UBS Wealth Management Americas. really felt like we wantedofto have a physfice will be “significant,” hecompany said, as its the other wealth management offices. The plans to start its buildtraditional, more “urban” feelright) than 1515 Woodward Ave. and the Sanders Building (center atthe 1529 feet on the connected sixth floors of nell Building (center left) at “The real impetus for us to open adowntown new ical presence to reinforce “uniqueness comes at saidnext year, depending Bush is based outothers, of the he Birmingham outa price.” processHe early said. New York-based architecneighboring buildings at 1515 Wood- Woodward Ave. office in Detroit is our to support go-particular vision what’s for this areatravels and toture he will could not yet an estimate office, but the firm others and will Cale on when renovations on the buildings Verderame design the provide ward Ave. and 1529 ing Woodward don’t really have adequate resources Fourteen metro Detroit employees on in theAve. city,”tosaid Bush, a Detroit reinforce our on Barton the cost of the build-out, as some be spending time inspace; the Detroit branch. are complete. Southfield-based Malow The two buildings builtnative around 1900 areup in adequate office space to have host dowill moveCity. to tothe officelocation to or will who grew Garden “Wedowntown commitment contracts finalized. The Detroit have aon less based in Switzerland, employs Co. has signed as general contractor.yet to beUBS, owned by Detroit-based Bedrock nor events or board or things start, thea physoffice has the capacity really felt likeLLC we wanted tobut The company plans to startacross its buildtraditional, moreto“urban” than the outmeetings the city. ” have 60,000 54 countries. About 34 UBS feel plans to rent about half of the and are undergoing renovations, along those lines,” Bush said. early next year, depending hold six to eight new he staff memical presencesaid downtown toWealth reinforce others, said. New office York-based architecUBS another — 6,000 square out feetprocess — at no cost percent of them work in the AmeriJohn Bush, 60, Michiganour market head UBS’s investment the renovations new of- on the buildings bers, said. It will act an extension vision for for thisMparticular oninorganizations, when tureasfirm VerderametoCale will design theother a n aBush g e marea e n tand cas, according to a news release. UBS nonprofits and UBS Wealth Management will beMalow “significant,” he said, as its of the other also wealth management offices. ficeBarton to Americas. reinforce our Americas are be complete. space; Southfield-based Bush said. The space will called UBS Wealth Management Americas em“The real impetus for commitment us to open a new “uniqueness comes at a price.” He said is based thehas Birmingham to has Bush based signed on as Woodward general contractor. metro De- out ofCo. ploys 280employs in Michigan, 225 of whom Gallery. Its UBS, design and in artSwitzerland, office in Detroit is to support what’s go- office, but travels to theUBS an estimate heabout couldhalf not others and the city. ” 60,000 across 54 countries. 34 Detroit. plans towill rent will out of yet the provide troit offices in are basedAbout in metro aim to showcase Detroit’s history ing on in the city,” said Bush, on the cost the build-out, asthem somework in the Amerispending Detroit branch. UBS a Detroit Wealth B be percent office — 6,000 square at noofcost irm i n g h a time m , in the The wealth management business andfeet a— hub-and-spoke layout ofwill renative who grew up in Garden contracts have yet tocas, be finalized. M a n a gCity. e m“We e n t Troy, The Detroit locationtowill have a and less other according to a news release. UBS nonprofits organizations, Farmington recorded operating income of $2.13 flect the city’s road system. really felt like we wanted to have a physAmericas also Hills, The plans to startManagement its buildtraditional, more “urban” Wealth Americas em- quarter of 2017 — a Bushfeel said.than The the space will becompany called Plymouth in the third “Some of theUBS organizations that op- billion ical presence downtown reinforce has tometro De- others, he said. New York-based outdesign process early year,280 depending architecploys in Michigan, 225 of whom Woodward Gallery. Its and art next John Bush erate and Dearborn. and provide services in the city 7 percent increase over last year. our vision for this particular area and troit offices in ture firm Verderame Cale when renovations the buildings the onDetroit’s in metro Detroit. willwill aimdesign to showcase history areonbased to reinforce our B i r m i n g h a m , space; Southfield-based are complete. Barton Malow The wealth management business and a hub-and-spoke layout will reReprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All Rights reserved. commitment to Troy, Farmington Co. has signed on as general UBS, basedis prohibited. in Switzerland, employs income recorded operating contractor. flectFurther the city’s road without system. duplication permission Visit www.crainsdetroit.com. #CD936of $2.13 Hills, Plymouth the city.” billion in About the third “Somehalf of the organizations that op60,000 across 54 countries. 34quarter of 2017 — a UBS plans to rent out about of the John Bush and Dearborn. UBS Wealth 7 percent and provide city work percentinofthe them in theincrease Ameri-over last year. office — 6,000 squareerate feet — at no cost services Management to nonprofits and other organizations, cas, according to a news release. UBS Reprinted with permission from Crain’s Crain Communications Inc. All Rights reserved. Americas also Wealth Management Americas emBush said. The space will be Detroit calledBusiness. UBS © 2019 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD936 has metro DeWoodward Gallery. Its design and art ploys 280 in Michigan, 225 of whom troit offices in will aim to showcase Detroit’s history are based in metro Detroit. Birmingham, The wealth management business and a hub-and-spoke layout will reCRAINSDETROIT.COM I MARCH 9, 2020 I Troy, Farmington recorded operating income of $2.13 flect the city’s road system. Hills, Plymouth THE CONVERSATION “Some of the organizations that op- billion in the third quarter of 2017 — a John Bush erate and provide services in the city 7 percent increase over last year. and Dearborn.

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Bedrock LLC

UBS to open downtown Detroit office

Bedrock LLC

hroughout Dandridge Floyd’s careers — whether as a social worker, attorney or assistant superintendent of Oakland Schools — making change has always been a center point. When United Way pitched a framework to Oakland Schools for a countywide breakfast program to address poor nutrition as a way to improve academic achievement, Floyd — who experienced food insecurity growing up — knew firsthand the powerful impact it could have. To secure the needed funds, Floyd led a team that earned support from all 28 local districts to finance the program — despite the fact that a majority of them would see no benefit. “The local districts were phenomenal,” Floyd said. “The biggest surprise was how quickly it happened. Education is a democratic system and democracy can be very slow, but this happened in six to seven months. That showed how committed people were to making sure the students of Oakland County have everything they need to be successful.” In a county where over 7,000 children suffer from hunger, and only two in five eligible students access a school breakfast, Floyd said a common misperception is that “Oakland County is rich.” “That makes this program all the more important, because if that is the bias or the thought process people have about Oakland County, then these kids would have never gotten help.” In a groundbreaking public/nonprofit partnership between the Oakland County Board of Commissioners, Oakland Schools and United Way, Oakland County is Better with Breakfast was born. “I’m impacting lives now,” Floyd said. “I know the effect food insecurity had on me and my peers growing up, and this was an opportunity to make a change that I wish an adult could have made for me.” — Laura Cassar

Albert Berriz talks workforce housing, Ann Arbor and Cuba

18 | CRAIN’S DETROIT BUSINESS44 00 | OCTOBER 19, 2020 Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All Rights reserved. | BY KIRK PINHO Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD936

`You were talking a little bit earlier about how McKinley got out of retail and office. What led to that decision and how has that reflected or shaped your business strategy? It was a risk profile that we were just not comfortable with. We are a generational business and so we look at our assets in

a way that we never expect to sell them. We expect to invest in them so they last for long term, and we just couldn’t see that on retail. We saw a significant degradation of our rent rolls. We had buildings that were, let’s say, 70 percent to 80 percent investment-grade credit tenant composition and then we saw that we saw that quickly degrade. We just didn’t see a place where we could really have an asset class retail that would last for the long run. And then office in many ways, the same way. The way people are shopping and the way people are occupying offices today, the risk profile is very different than it was, let’s say, when we were making those investments 20 and 30 years ago, so for us, it was the right move. It’s paid off because, had we held many of the assets today, they would be significantly compromised. I think they would be worth a lot less. We started those sales about six years ago, and we sold a lot of that early on, so we sold them still at a time they were being valued significantly more than they would be worth today, in our opinion. And we sold some big buildings. I mean, these weren’t small buildings. We sold a 1 millionsquare-foot shopping center, for example, in Norfolk, Va., which is one of the largest power centers in the state of Virginia. So these weren’t small assets. So they were important for us to move them out at the right time, and for people that thought that was there was a good upside for them, so we actually sold them at good prices, and certainly we couldn’t have sold them at those prices today.

trajectory was to where you are today in terms of the head of McKinley. I left (Cuba) compliments of Fidel Castro in early 1959 because of the Cuban Revolution. We had to flee. It was survival to leave the country at the time and my parents relocated to Miami. We were fortunate for that. We’re fortunate to have left alive, fortunate to have resettled in what is without question the greatest country on the planet. I was not born here. I was born in Havana and I emigrated as a Cuban refugee just before I was 4 years old with my parents.

`What consumes your day outside of the office? My wife and I walk. We like to boat, so those are the two things. In our summers we live at Saugatuck, and it’s a great place to live. We’d live there year-round, but it’s a little too cold in the winter.

`Can you give thumbnail sketch of coming here and what your

Albert Berriz, CEO and managing member, McKinley Inc.

UNDER

Assistant Superintendent of Human Relations and Labor Relations, Oakland Schools

October 30, 2017 | crainsdetroit.com

UBS to open downtown Detroit office By Annalise Frank

October 30, 2017 | crainsdetroit.com

• UBS plans to open wealth management office in Detroit in mid-2018 • Office to include 6,000-squarefoot space30,nonprofits and civic October 2017 | crainsdetroit.com

UBS to open downtown Detroit office By Annalise Frank

groups • UBS plans to open wealthcan use free of charge • Bedrock-owned buildings

office in Detroit “I’m impacting lives now. management I know undergoing renovations in mid-2018 6,000-squarethe effect food insecurity• Office had onto includeUBS plans to open an office in down-

UBS to open downtown Detroit office foot space nonprofits and civic

town Detroit in mid-2018, the company Annalise Frank growing groups meByand my peers up, andcan useannounced free of charge Monday. • Bedrock-ownedUBS buildings Group AG’s U.S. and Canadian UBSan plans to open wealth this•was opportunity toundergoing make a renovations wealth management business, New Jer-

management office in Detroit

sey-based Wealth Management change I wish an adult UBScould plans to open an office UBS in downin that mid-2018 Americas, to lease 13,000 square town Detroit in mid-2018, theplans company • Office to include 6,000-squarefeet on the connected sixth floors of have made for me.” announced Monday. foot space nonprofits and civic

UBS will lease 13,000 feet from Bedrock LLC starting around mid-2018 in two buildings: the Grinnell Building (center left) at 1515 Woodward Ave. and the Sanders Building (center right) at 1529

buildings at 1515 Wood- Woodward Ave. Group AG’sneighboring U.S. and Canadian groups can use free UBS of charge ward Ave. and Fourteen metro Detroit employees don’t really have adequate resources wealth management business, New 1529 Jer- Woodward Ave. • Bedrock-owned buildings The twoManagement buildings built around 1900 are will move to the downtown office to or adequate office space to host dosey-based UBS Wealth undergoing renovations by Detroit-based will lease LLC 13,000 feet from Bedrock LLC starting around mid-2018 buildings: Grin- meetings or things nor events the or board start, but the office has the capacity toin two Americas, plans toowned lease 13,000 square UBSBedrock nell Building (center at 1515 Woodward andnew the Sanders Buildingalong (centerthose right) at 1529 Bush said. and are undergoing said left) lines,” hold another six toAve. eight staff memon inthe connected sixth floors of renovations, Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All RightsUBS reserved. plans to open anfeet office downAve. for bers, Bush said. It will act as an extension John Bush, 60, WoodMichiganWoodward market head UBS’s investment in the new ofneighboring buildings at 1515 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD1134 town Detroit in mid-2018, the company UBS Wealth ManagementFourteen Americas.metro of fice will resources be “significant,” he said, as its the other wealth management offices. don’t really have adequate Detroit employees announced Monday. ward Ave. and 1529 Woodward Ave. “The real impetus open atonew The twoCanadian buildings built around 1900 arefor us “uniqueness Bush is based Birmingham office space to hostcomes do- at a price.” He said willto move the downtown office out to ofortheadequate UBS Group AG’s U.S. and office inBedrock Detroit is to support what’s owned by Detroit-based LLC he could or not yet provide an estimate but travels to to the will meetings norothers eventsand or board things start, but the goofficeoffice, has the capacity wealth management business, New Jering renovations, on in the city, ” saidhold Bush, a Detroit and are undergoing said on the be spending in thealong Detroit branch. those lines,” Bush said.cost of the build-out, as some another six to eight new stafftime memsey-based UBS Wealth Management nativemarket who grew City. “We John Bush, 60, Michigan headup forin Garden have yet The location have a less UBS’s investment in the new of- to be finalized. said. will act asDetroit an extension fromBush Bedrock LLCItstarting around mid-2018 in twowill buildings: the Grin- contracts Americas, plans to lease 13,000 square UBS will lease 13,000 feetbers, UBS Wealth Management Americas. really felt like we wantedofto have a physfice will be “significant,” hecompany said, as its the other wealth management offices. The plans to start its buildtraditional, more “urban” feelright) than 1515 Woodward Ave. and the Sanders Building (center atthe 1529 feet on the connected sixth floors of nell Building (center left) at “The real impetus for us to open new ical presence to reinforce “uniqueness comes at saidnext year, depending Bush is based outothers, of the he Birmingham outa price.” processHeearly said. New York-based architecAve. adowntown neighboring buildings office at 1515 Wood- toWoodward in Detroit is our support go-particular vision what’s for this areatravels and toture he will could not yet an estimate office, but the firm others and will Cale on when renovations on the buildings Verderame design the provide ward Ave. and 1529 ing Woodward don’t really have adequate resources Fourteen metro Detroit employees on in theAve. city,”tosaid Bush, a Detroit reinforce our on Barton the cost of the build-out, as some be spending time inspace; the Detroit branch. are complete. Southfield-based Malow The two buildings builtnative around 1900 areup in adequate office space to have host dowill moveCity. to tothe officelocation to or will who grew Garden “Wedowntown commitment contracts finalized. The Detroit have aon less based in Switzerland, employs Co. has signed as general contractor.yet to beUBS, owned by Detroit-based Bedrock nor events or board or things start, thea physoffice has the capacity really felt likeLLC we wanted tobut The company plans to startacross its buildtraditional, moreto“urban” than the outmeetings the city. ” have 60,000 54 countries. About 34 UBS feel plans to rent about half of the and are undergoing renovations, along those lines,” Bush said. early next year, depending hold six to eight new he staff memical presencesaid downtown toWealth reinforce others, said. New office York-based architecUBS another — 6,000 square out feetprocess — at no cost percent of them work in the AmeriJohn Bush, 60, Michiganour market head UBS’s investment the renovations new of- on the buildings bers, said. It will act an extension vision for for thisMparticular oninorganizations, when tureasfirm VerderametoCale will design theother a n aBush g e marea e n tand cas, according to a news release. UBS nonprofits and UBS Wealth Management will beMalow “significant,” he said, as its of the other also wealth management offices. ficeBarton to Americas. reinforce our Americas are be complete. space; Southfield-based Bush said. The space will called UBS Wealth Management Americas em“The real impetus for commitment us to open a new “uniqueness comes at a price.” He said is based thehas Birmingham to has Bush based signed on as Woodward general contractor. metro De- out ofCo. ploys 280employs in Michigan, 225 of whom Gallery. Its UBS, design and in artSwitzerland, office in Detroit is to support what’s go- office, but travels to theUBS heabout couldhalf not an estimate others and the city. ” 60,000 across 54 countries. 34 Detroit. plans towill rent will out of yet the provide troit offices in are basedAbout in metro aim to showcase Detroit’s history ing on in the city,” said Bush, on the cost the build-out, asthem somework in the Amerispending Detroit branch. UBS a Detroit Wealth B be percent office — 6,000 square at noofcost irm i n g h a time m , in the The wealth management business andfeet a— hub-and-spoke layout ofwill renative who grew up in Garden contracts have yet tocas, be finalized. M a n a gCity. e m“We e n t Troy, The Detroit locationtowill have a and less other according to a news release. UBS nonprofits organizations, Farmington recorded operating income of $2.13 flect the city’s road system. really felt like we wanted to have a physAmericas also Hills, The plans to startManagement its buildtraditional, more “urban” Wealth Americas em- quarter of 2017 — a Bushfeel said.than The the space will becompany called Plymouth in the third “Some of theUBS organizations that op- billion ical presence downtown reinforce has tometro De- others, he said. New York-based outdesign process early year,280 depending architecploys in Michigan, 225 of whom Woodward Gallery. Its and art next John Bush erate and Dearborn. and provide services in the city 7 percent increase over last year. our vision for this particular area and troit offices in ture firm Verderame Cale when renovations the buildings the onDetroit’s in metro Detroit. will will aimdesign to showcase history areonbased to reinforce our B i r m i n g h a m , space; Southfield-based complete. Malow arelayout The wealth management business andBarton a hub-and-spoke will reReprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All Rights reserved. commitment to Troy, Farmington Co. has signed on as general UBS, basedis prohibited. in Switzerland, employs income recorded operating contractor. flectFurther the city’s road without system. duplication permission Visit www.crainsdetroit.com. #CD936of $2.13 Hills, Plymouth the city.” billion in About the third “Somehalf of the organizations that op60,000 across 54 countries. 34quarter of 2017 — a UBS plans to rent out about of the John Bush and Dearborn. UBS Wealth 7 percent and provide city work percentinofthe them in theincrease Ameri-over last year. office — 6,000 squareerate feet — at no cost services Management to nonprofits and other organizations, cas, according to a news release. UBS Reprinted with permission from Crain’s Crain Communications Inc. All Rights reserved. Americas also Wealth Management Americas emBush said. The space will be Detroit calledBusiness. UBS © 2019 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD936 has metro DeWoodward Gallery. Its design and art ploys 280 in Michigan, 225 of whom troit offices in will aim to showcase Detroit’s history are based in metro Detroit. Birmingham, The wealth management business and a hub-and-spoke layout will reCRAINSDETROIT.COM I MARCH 9, 2020 I Troy, Farmington recorded operating income of $2.13 flect the city’s road system. THE CONVERSATION Hills, Plymouth “Some of the organizations that op- billion in the third quarter of 2017 — a John Bush erate and provide services in the city 7 percent increase over last year. and Dearborn. Bedrock LLC

September 2, 2019 | crainsdetroit.com

Dandridge Floyd, 37

Bedrock LLC

`I don’t think it’s overblown to use the word “crisis” for Ann Arbor’s affordable housing situation. Give us your perspective on how the city should go about addressing it. I think it’s a supply issue. The reality is that Ann Arbor has not really welcomed solutions from the private sector and has only sought solutions from the public housing side or the community nonprofit side. And both of those groups, while I think they’re very well intentioned, don’t have the capital and the expertise to resolve the problem at the scale it’s needed. To put it in perspective, you know, the Washtenaw County study that came out had a need of about 3,000 units. And if you look at the cost per unit today, and let’s say $250,000 or $300,000 per unit to build a brand new unit today, you know, it’s an $800 million to a $1 billion problem, so I don’t think that’s a problem that gets resolved on the public side or on the community nonprofit side. You know, they have to go to places to seek capital and there just isn’t enough capital, nor do they have enough resources or expertise to resolve the problems. So the city I think, by and large, has attempted to do this in those ways because they really haven’t welcomed the private side. And there is a lot of expertise and there’s a lot of capital that could do this, from the private side perspective. It just hasn’t been the way that Ann Arbor operates, so you see what has happened in Ann Arbor year over year, decade over decade is there’s a lot of conversations about affordable housing, but there’s no solutions.

Bedrock LLC

` Explain workforce housing versus affordable housing. We’re not in luxury housing. Our residents are working. They’re going to wake up tomorrow morning and go to work. Our average rents are, for example, in Washtenaw County, about $1,100 to $1,200 or in Orange County, or Seminole County, Florida, $1,400 or $1,500. So these are affordable rents. And the difference between us and affordable housing is our buildings are not subsidized. They’re all market rate, and they’re all privately owned. The owners are not receiving any form of subsidy, nor are the residents. However, if you wanted to sort of assess residents and low-income housing tax credit deals compared to ours, they’re probably not too dissimilar, the median incomes. The McKinley residents in, let’s say, Washtenaw County, when you look at the numbers are probably not going to be too much different than what you would see in a traditional LIHTC deal. But again, our buildings, the primary differences, our buildings are market rate and they’re not subsidized any way.

PHOTOGRAPH BY JACOB LEWKOW FOR CRAIN’S

`Crain’s Detroit Business: Can you talk a little bit about how the McKinley portfolio began and where it’s at today? Berriz: McKinley started in 1968 in Ann Arbor, and it was founded by (former U.S.) Ambassador Ron Weiser. It started in the student housing business and eventually transitioned into more traditional multifamily housing, and in addition to that, office and retail, as well. Today, we’re primarily a workforce housing multifamily operator. We have essentially disposed of our retail and office assets in an effort to really focus on multifamily and also focus on an asset class that I think is more in line with our current goal, which is to have a generational multifamily real estate enterprise and a pool of assets that really are long term in nature.

Laura Picariello

Reprints Sales Manager Phone: (732) 723-0569 Fax (888) 299-2205

Albert Berriz talks workforce housing, Ann Arbor and Cuba

Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All Rights reserved. | BY KIRK PINHO Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD936

MCKINLEY INC.: Ann Arbor-based real estate company McKinley Inc. saw the writing on the wall for its retail portfolio a few years ago and cut bait, turning its focus primarily to its large crop of tens of thousands of workforce housing units across the country. One of the people at the helm of that decision was Albert Berriz, CEO and managing member, who came to America as a young boy fleeing Cuba and now steers a large company with a portfolio valued at more than $4 billion. `Crain’s Detroit Business: Can you talk a little bit about how the McKinley portfolio began and where it’s at today? Berriz: McKinley started in 1968 in Ann Arbor, and it was founded by (former U.S.) Ambassador Ron Weiser. It started in the student housing business and eventually transitioned into more traditional multifamily housing, and in addition to that, office and retail, as well. Today, we’re primarily a workforce housing multifamily operator. We have essentially disposed of our retail and office assets in an effort to

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CREDIT

From Page 3

The October class action lawsuit by shareholders was brought by Palm Tran Inc. Amalgamated Transit Union Local 1577 and marks the first known case brought by investors of the company. Several other law firms, however, have announced investigations in the wake of the Massachusetts case and seek potential plaintiffs, including Hagens Berman Sobol Shapiro LLP. Reed Kathrein, a Hagens Berman partner in Berkeley, Calif., said the firm began paying attention to the company after the Massachusetts lawsuit. Like others, Kathrein’s complaint is multipronged and goes beyond consumer practices. The “nail in the coffin” for his firm to begin further investigations into the company stemmed from the fraud allegations in the lawsuit and memories of a time many would prefer to forget. “We’re going back to 2008 and the crisis that was precipitated then by all the bad loan practices and the repackaging of mortgage-backed securities with low-grade loans that weren’t disclosed,” Kathrein said. “It’s a repeat of 2006 to 2008.” The allegations and comparisons to the 2008 mortgage collapse were common among sources contacted for this report. However, any widespread fallout from Credit Acceptance’s alleged actions would be relatively minor compared with the catastrophic collapse of the housing market in the mid-2000s, because auto loans simply make up a smaller part of the economy. “Homes are a way people build wealth. Cars are not,” said Lisa Stifler, director of state policy for the North Carolina-based advocacy group Center for Responsible Lending. To be sure, the current rampant unemployment and increasing poverty is causing problems for those trying make car payments. That has been reflected in Credit Acceptance’s own earnings reports. Officials at Credit Acceptance did not respond to requests for comment for this report. The company has disclosed to shareholders that it is cooperating in a wide variety of inquiries being led by states and that it intends to defend itself in the cases where lawsuits have been filed.

‘Expensive to be poor’ The average CAC customer might be able to buy an $8,000 Chevy with the loan they receive, but the true cost of

DONOFRIO

From Page 3

“(The national search) landed unanimously on Jeff,” Anderson told Crain’s. “Style is very important for us, and we think his style is an excellent fit for the organization.” In Detroit, Donofrio’s work on workforce development included the revitalization of skilled-trades high schools and leading an effort to convince the Legislature to forgive more than 350,000 motorists for $637 million in driver responsibility fee debt that were seen as a hindrance to getting a job because people lost their driver’s licenses. “He’s strategic, he’s data-driven and he digs into the details of public policy to make sure he gets them right,” Anderson said. “That was a defining reason why we picked Jeff.” Donofrio has worked closely for years with Anderson’s team, reporting to DTE Energy’s vice chairman, Dave Meador, who co-chairs the mayor’s workforce development

Credit Acceptance Corp. in Southfield. | COSTAR GROUP INC.

Stifler

Roling

the vehicle is likely to be roughly double that. That is if the customer is even able to make the payments; the company winds up repossessing more than a third of the vehicles it finances, as has been reported by Jalopnik and acknowledged by Credit Acceptance executives. Michigan law allows for a maximum interest rate of 25 percent on a vehicle purchase, but using the 20.99 percent maximum interest rate charged to most consumers in Massachusetts on a 60-month amortization schedule, the costs add up quickly. The Massachusetts lawsuit says most borrowers there were charged the state’s maximum legal interest rate. The schedule, calculated for Crain’s by Matthew Roling, an adjunct professor of finance at Wayne State University’s Mike Illitch School of Business, shows that a customer taking an $8,000 loan from Credit Acceptance would pay just under $5,000 in interest over the life of the loan. Throw in another estimated $2,500 in various fees that the Massachusetts lawsuit calls “hidden,” and a Credit Acceptance customer is paying about the value of the vehicle in fees and interest. The “hidden” finance charges have been charged to many borrowers who “were required to purchase vehicle service contracts as a condition of obtaining CAC loans,” the Massachusetts lawsuit says. board with Cindy Pasky, CEO of Strategic Staffing Solutions. During his four years as Detroit’s workforce development director, Donofrio was on loan to the city from Ford Motor Co., where he worked in government relations for the automaker in Washington, D.C. Donofrio got his start in government on the staff of the late U.S. Rep. John Dingell and did a stint as a transportation policy adviser for former Gov. Jennifer Granholm. “We liked his wide-ranging experience as well,” Anderson said. “That combination of style and experiences led to him getting real concrete results, which is something we want out of Business Leaders for Michigan. “We want to dig into things, but create positive change,” he added. Whitmer named Donofrio her labor director last year when she reorganized the agency, changing its Snyder-era name from the Talent and Economic Development department to the Labor and Economic Opportunity department.

“In addition, CAC dealers added an extra markup to the prices of vehicles they sold to high-risk borrowers with poor credit or low scores; the extra markup was a hidden finance charge that was never disclosed to borrowers,” according to the lawsuit. Roling acknowledges there is a need for lending to those with weak credit, but his praise of the company stops there. “I just find their business model really problematic,” he said. “This is why people say it’s expensive to be poor.”

‘Unheard of’ profit margins In general, the company makes high profits on loans that are often never fully repaid, according to court documents. Those profits come from a variety of methods, including fees that are often undisclosed to borrowers at time of purchase, aggressive collection practices and high rates of vehicle repossession that generally results in the cars being resold. In 2019, Credit Acceptance saw profit of $656 million on about $1.5 billion in revenue, a profit margin of about 60 percent. “That’s unheard of,” Roling said of that margin. “That is one of the single most profitable business models in the United States. That money is essentially being extracted from the least educated and the least affluent of our neighbors.” Ian Lyngklip, a senior attorney at Lyngklip & Associates Consumer Law Center PLC in Royal Oak, particularly takes issue with the company’s proprietary Credit Approval Processing System, a computer portal used by CAC and its “dealer-partners,” according to the Massachusetts lawsuit. That system, Lyngklip told Crain’s, has been set up to ensure that buyers get the worst deal possible. “Jeff ’s short tenure in Detroit provided more measurable and meaningful workforce solutions than any effort I’ve seen in my 22 years working in this discipline,” Dave Egner, CEO of the Ralph C. Wilson Jr. Foundation, said in a statement about Donofrio when he joined Whitmer’s cabinet. In Lansing, Donofrio has led the Whitmer administration’s response to the economic fallout from the coronavirus pandemic and businesses being forced by orders from the governor to close to mitigate spread of the virus. Michigan’s Unemployment Insurance Agency was at the center of the fallout in the spring, seeing a surge of unemployment claims after mass layoffs in the manufacturing, hospitality and service sectors. The agency was beset by crisis after being overwhelmed by the sheer volume of unemployment claims that caused months of backups and widespread attempts to defraud the social safety net. Donofrio is credited with implementing a large-scale expansion of

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“Make no mistake, this system is effectively assisting the dealers to maximize that profit to the disadvantage of a consumer from day one,” Lyngklip said. The various lawsuits and investigations come during a time when the COVID-19 pandemic has caused economic tumult, especially for people with lower incomes who represent the core of Credit Acceptance borrowers. An Oct. 15 report from the Center on Poverty and Social Policy at Columbia University found that the U.S. poverty rate rose from 15 percent to 16.7 percent between February and September of this year. The federal CARES Act stimulus package offset much of that in the spring months, but the stimulus payments and extra unemployment assistance have now expired. In an early August earnings call ahead of the lawsuits, Credit Acceptance CEO Brett Roberts told analysts that the company was working closely with borrowers who were having trouble with car payments due to the economic situation. “So we — like we always do, work with customers that are having difficulty making their payments,” Roberts said. “The objective is to keep the customer in the vehicle. It’s good for the customer, it’s good for us.” But it’s also clear that borrowers’ inability to make payments is causing trouble for Credit Acceptance. Crain’s New York Business reported in July that the company’s earnings for the first half of the year plummeted 96 percent to $12 million.

Keeping Detroit court busy While multiple law firms around the country now have Credit Acceptance on their radar following the initial lawsuit in Massachusetts, one place the company has long been known is Detroit’s 36th District Court. With more than 36 percent of Detroiters living in poverty, the city makes for a natural location for a subprime auto lender to do business. And when those clients are unable to make car payments, they often find themselves as defendants in cases at Michigan’s largest district court. In the 2019 calendar year, 36th District Court saw a total of 43,835 civil cases filed. Of those, 4,586, or a little more than 10 percent, were cases in which Credit Acceptance was the plaintiff, according to court records supplied to Crain’s. Officials with the court declined to comment to Crain’s on the impact on court operations and revenue given the the federally funded “work share” program that allowed employers to bring workers back part time while allowing them to continue collecting partial unemployment benefits. Nearly 100,000 Michigan workers returned to some 2,500 different workplaces through the program this summer, which the labor department estimated in August saved the state’s unemployment trust fund $212 million. “Jeff has been a true champion for Michigan businesses and working families during one of the toughest periods in our state’s history,” Whitmer said in a statement. “As we’ve been fighting COVID-19, Jeff’s team has expanded benefits for hundreds of thousands of working people who’ve lost a job, provided critical support to our small businesses, and ensured our workers stay safe on the job.” The state of Michigan itself utilized the work-share program to furlough 28,000 state workers one day per week this summer and put them on partial unemployment. “Even if you take out that 28,000

large amount of Credit Acceptance cases that flow through the court. The court charges fees of between $35 and $160 for general civil claims depending on the size of the claim, according to a fee schedule from January 2018 available on the 36th District Court website.

DIVERSITY

Profits off loans that aren’t repaid The 33-page lawsuit filed in late August by the office of Massachusetts Attorney General Maura Healey also came as the company came under fire from a notorious short-seller and saw a large sell-off of its stock, as Crain’s previously reported. The lawsuit goes in depth on the company’s general business model, and shines a bright light on the notion that unlike traditional lenders, Credit Acceptance does not expect to make money from its loans. The company expected to collect on just 66 percent of the loans it made last year, down from 75 percent in 2013, per the Massachusetts lawsuit. The company expects to collect about 70 cents in payments on each dollar loaned, the lawsuit alleges. “Unlike a traditional lender, CAC’s business model is based on making loans to borrowers — including highrisk borrowers with low ... scores — who are not likely to repay their loans, and CAC’s profit model involves making money on loans that are not repaid,” the lawsuit reads. “By reducing its payment to dealers commensurate with the expected likelihood of loan repayment, CAC ensures that its return, on average, remains the same, no matter how much — or how little — of the loans it expects to collect.” The investor class action, filed by investors on Oct. 2 in the U.S. District Court for the Eastern District of Michigan, demands a jury trial and names both Credit Acceptance CEO Roberts and CFO Kenneth Booth as defendants. While any specific outcome for the company or for borrowers remains unclear, Stifler with the Center for Responsible Lending notes that the widespread actions from a variety of parties means that Credit Acceptance has an uphill battle for the foreseeable future. “The coupling of the consumer side, the enforcement from the states for consumer protections and the investor perspective, it seems like ... those are significant challenges for the company,” Stifler said. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes from the 97,000 we had, we’d still be No. 1 in the nation of workshare participants,” Donofrio told Crain’s in mid-August. Donofrio’s department has been working to implement two college tuition assistance programs called Futures for Frontliners and Michigan Reconnect to help meet the governor’s goal of having 60 percent of adults with post-high school credentials by 2030. “Even as we’ve battled the worst public health crisis in a century, I’m incredibly proud of the work we’ve accomplished together to expand career and skills training opportunities for adults in our state through Futures for Frontliners and Michigan Reconnect,” Donofrio said Friday in a statement. “I look forward to continuing to partner with Governor Whitmer’s administration in the future.” Donofrio was a Crain’s 40 Under 40 honoree in 2018. Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

Seth Bernard, Title Track founder and co-executive director, developed the Craft Libations for Collective Liberation program. | TITLE TRACK

Breweries serve up racial justice conversations to their customers BY JEFF BURTKA | SPECIAL TO CRAIN’S DETROIT BUSINESS

With the national discourse about race growing louder, Michigan’s craft brewing industry is facing its own racial reckoning, due to racial demographics of its workforce and customer base and backlash from a high-profile racial discrimination lawsuit involving Founders Brewing Co. last year. According to data from the Brewers Association, 88.4 percent of craft brewery owners nationally are white, one percent are Black, and 2.4 percent are Hispanic. This disparity carries over to customers: 78.4 percent of craft beer drinkers are white, 4 percent are Black, and 10.2 percent are Hispanic. Many brewers are providing diversity, equity and inclusion training to their staff to address these disparities, but one organization is planning to go a step further and bring discussions about racial justice and diversity to brewery customers throughout Michigan. Title Track is a nonprofit based in Williamsburg that offers various environmental and social justice programs, including racial justice training. Seth Bernard, Title Track founder and co-executive director, applied his vast experience in environmental advocacy, social justice, and community-building to develop the Craft Libations for Collective Liberation program (CL4CL). Once it reaches its $25,000 fundraising goal, the program plans to bring a series of discussions about racial justice, allyship, and anti-oppression to five Michigan breweries and their customers. The discussions will be tailored to each brewery and the community it serves. Joe Short, founder and CEO of Short’s Brewing Company, is on Title Track’s board. When faced with the news of George Floyd’s death and the growing Black Lives Matter movement this summer, Short thought about the actions he could take to address racism and benefit communities. He realized he could use his position with Title Track and connections in the brewing industry to bring diversity and racial justice awareness to Michigan residents who might be less aware of these issues. Short reached out to Bernard, and they decided that it was the perfect time to bring Title

Track’s work to Michigan’s breweries. “We are having a national discussion about race,” Bernard said. “I’m so grateful to our friends at Short’s for their ideas and efforts to help build awareness and engage their community in this work for justice.” “A lot of breweries are establishments that are looked upon as pillars of their community and leaders in the community, and I think they are a helpful bridge or a gateway to connect to more people,” Short says. “The great thing about the craft beer industry is that there’s a brewery in almost

“IN MY EXPERIENCE, A LOT OF BREWERIES ARE CREATED BY FOLKS WHO ARE VERY PASSIONATE ABOUT WHAT THEY DO, ARE CREATIVE AND IMAGINATIVE AND GENERALLY OPEN-MINDED ABOUT THE WORLD.” — Seth Bernard, Title Track founder and co-executive director

every community, and every region around the state has a different audience.” “Historically, the public house was a special place in the community where folks could connect, exchange ideas, and have open public discourse,” Bernard said. “In my experience, a lot of breweries are created by folks who are very passionate about what they do, are creative and imaginative and generally open-minded about the world.” CL4CL has received donations from Short’s, Eastern Market Brewing Company, Black Rocks Brewery, and Beards Brewery. Scott Graham, executive director of Michigan Brewers Guild, says his organization supports the program, and he hopes it might help him discover barriers to people feeling welcome at Michigan breweries. “There’s the real, obvious, practical, economic reality of: Why would you want to exclude any customer?” Graham said, but he also sees the humanitarian need for inclusivity. “Within our community, there’s a real resounding belief that we care about each other, we care about others, we care about the environment. I think it

fits with our community naturally.” Michigan breweries are making efforts to foster diversity, inclusion, and racial justice. Many have conducted staff training and developed diversity and inclusion policies. Thirty-three Michigan breweries took part in the Black is Beautiful Beer project this summer, in which they brewed a limited-edition beer and donated 100 percent of the proceeds to “local foundations that support police brutality reform and legal defenses for those who have been wronged.” But there is more work to be done. Graci Harkema, diversity and inclusion consultant and owner of Graci LLC, says brewers need to support and collaborate with diverse and underrepresented groups to increase diversity, and they must ensure that their marketing is inclusive and shows a wider range of faces and backgrounds. Last year, Harkema stepped down from her diversity and inclusion director position at Founders Brewing Co. and spoke out publicly about the brewery’s handling of the racial discrimination lawsuit. “Breweries have a responsibility to expand who they’re targeting. Breweries have done such a great job traditionally targeting white, young, and middle-aged males with beards,” she said. “People are going to be drawn to what they see.” CL4CL is more than a one-off discussion and will give participants take-home materials. CL4CL will also offer staff trainings that include meaningful steps to continue advocating for racial justice. “It’s important for the customers and those being trained to know that the work of diversity, equity, and inclusion never stops,” Harkema said. “There needs to be follow-up, accountability, policies, and practices in place to ensure that equitable standards are being implemented and inclusivity continues to increase.” Short acknowledges that having these discussions in some predominantly white communities, including his own in Northern Michigan, will be an uphill battle. But he wants to host a community conversation with his customers. “This is where we chose to live,” Short said. “And we chose this specifically because we did want our business to make an impact in our community in a positive way.”

OCTOBER 19, 2020 | CRAIN’S DETROIT BUSINESS | 19

CEMETERIES

cemeteries in Detroit as well as Resurrection Cemetery in Clinton Township, All Saints Cemetery and The From Page 1 Preserve at All Saints in Waterford Township and Guardian Angel CemAccording to Lawrence Sloane, etery in Rochester. who is director of Elmwood CemeThat includes things like crematery in Detroit and runs Albany, N.Y.tion gardens, cremation niches, small based L. F. Sloane Consulting Group buildings for up to 20 sets of crematInc., the average plot for an urn buried remains, cremation benches and al is 4 to 6 square feet, whereas a plot other such memorials. All those help for a casket is 24 to 40 square feet. make up for lost burial plot revenue. And in general, the smaller the plot, “There are a lot of difthe lower the cost. In addition, an accept- “CAN THAT (CREMATION TREND) CHANGE? SURE. ferent ways you can accommodate a cremation ed industry standard is FOREVER AND EVER, IT WAS ALWAYS STRICTLY space,” Chilcote said. that only about 25 per“Really the cremation cent of cremated remains BURIALS AND THEN ALL OF A SUDDEN trend has opened up a lot end up in cemeteries at CREMATION CAME IN AND MAYBE IT CAN of innovation — the only all, with the rest kept on thing is getting informamantles or scattered at fa- CHANGE GOING FORWARD. IT IS ESPECIALLY tion to the public about vorite and sentimental CHALLENGING FOR CEMETERY OWNERS.” what their options are.” spots as just some exam— Leonard Turowski, a fourth-generation funeral home owner Not only is that reveples, Sloane said. Translation: Even less revenue for in and maybe it can change going nue helpful in the short term, but it forward. It is especially challenging also provides a lasting benefit. cemeteries. David Harns, interim communica“Cemeteries have to work to pres- for cemetery owners.” To make up the revenue lost from tions director for the Michigan Deent themselves as relevant places to remember your loved ones,” Sloane the more expensive casket burials partment of Licensing and Regulatosaid of the impending cremation and selling larger plots of land for ry Affairs, said there are just over 200 surge, which has been caused by a them, cemeteries have had to get cre- cemeteries — 105 greater than 10 ative, said Michael Chilcote, general acres and 96 under 10 acres — that host of factors. Among them: environmental con- manager and COO of the nonprofit are required to have so-called percerns with things like embalming Mt. Elliott Cemeteries, which over- petual care funds, which are trusts and other factors; more geographi- sees the Mt. Elliott and Mt. Olivet that ensure the upkeep of the cemecally diverse families; greater religious acceptance of the practice, as well as a general shift away from organized religion overall; and economics. “Can that (cremation trend) change? Sure,” said Leonard Turowski, a fourth-generation funeral home owner with operations in Livonia and Canton Township. “Forever and ever, it was always strictly burials and then all of a sudden cremation came

Elmwood Cemetery is the oldest continuously operating, nondenominational cemetery in Detroit. KIRK PINHO/CRAIN’S DETROIT BUSINESS

Hospitals prep for COVID-19 vaccines as early as November

Uncertainty over which vaccine and how many doses will ship, storage needs pose challenges BY JAY GREENE

Hospitals in Michigan are scrambling to prepare to receive potentially life-saving coronavirus vaccines as early as November for distribution to health care workers and other vulnerable populations. “The (U.S. Centers for Disease Control and Prevention) has asked us to try to be prepared to receive a vaccine as early as November. That’s our plan now. We’re going to be ready to take this vaccine in November and get it out,” said Bob Swanson, director of immunization with the Michigan Department of Health and Human Services. But Swanson said there is no way of actually knowing when Michigan will begin to receive coronavirus vaccine shipments because of the uncertainty of the clinical trials and federal safety approvals. “The priority group that is on top of the CDC list is health care providers, and that means we will get the vaccine to our health systems and hospitals,” Swanson said. “They would vaccinate their own staff ... (and) all that are affiliated with that health system.” Michael McKenna, M.D., chief medical officer with 15-hospital McLaren Health Care in Grand Blanc, said hospitals began receiving surveys from the CDC last week to help estimate potential COVID-19 vaccine supply needs. “(They want to know) how many patients we treat in the marketplace, how many providers do vaccinations; more importantly, they’re asking what freezer facilities do you have and how much can you store within your freezers of the vials?” said McKenna. “We want to respond in a timely manner so we can get our allocation, but we don’t even know how large the vaccine containers will be.” Daniel Kaul, M.D., professor of internal medicine at Michigan Medicine in Ann Arbor and a principal COVID-19 researcher, said the University of Michigan is beginning to discuss how it will store the vaccine and administer it to health care

A health care worker prepares a free flu shot vaccination in Los Angeles, Calif. The annual U.S. flu vaccine campaign has been cast into disarray by COVID-19. | PATRICK T. FALLON/BLOOMBERG

workers and those most needing inoculations. “We started talking about doing something like vaccination days, where you bring a whole bunch of doses to a facility in the community and give them out,” Kaul said. “You have to figure out a way to bring people in, especially those with health disparities who might live in underserved settings and might not have great transportation access.” Swanson’s letter advises smaller health care facilities to consider offering joint vaccination clinics with larger medical clinics or hospitals, especially if the Pfizer vaccine is the first approved and shipped because it has large lot sizes and requires ultra cold storage temperatures. The Pfizer vaccine will come out with likely a minimum order size of 975 vials, compared with the Moderna vaccine, which likely will come out in boxes of 100 vials. The Pfizer vaccine also will require ultra-cold

20 | CRAIN’S DETROIT BUSINESS | OCTOBER 19, 2020

storage of -70 degree Celsius freezers, limiting the types of facilities that can accept shipments. “The size (and storage) makes a huge difference in how we’re going to manage the vaccines,” Swanson said. “The Pfizer vaccine is a limited supply and will be distributed quickly to a limited number of providers.” Another issue is how will the COVID-19 vaccines be paid for or reimbursed. Swanson said the costs will be paid by the federal government and the actual administration of the doses will most likely be paid by Medicare, Medicaid and private health insurers. “The CDC document says that you cannot turn away anybody who can’t pay, which is what you want to do, but there’s just all these details coming out and they just coming out fast and furious. We haven’t had a chance yet to really put together an effective plan,” McKenna said. Ed Hisscock, senior vice president

of supply chain management for Livonia-based Trinity Health, which operates eight hospitals in Michigan and 92 nationally, said the Catholic system has been preparing to accept large shipments of the COVID-19 vaccine and related supplies. “We have gone out and identified sources for needles and syringes. We need alcohol prep pads, Band-Aids, everything you need to administer a vaccine. We have not placed those orders yet,” said Hisscock. “(The federal) HHS has also confirmed that they have purchased a large amount of needles and syringes and expect to distribute them with the vaccine,” Hisscock said. “I’ve learned through the pandemic that you don’t know what you will receive until you get it. So there’s some uncertainty with the HHS allocation.” If the Pfizer vaccine is distributed first, Hisscock said Trinity may have to purchase more -70 degree freezers. “We’ve taken an inventory of our

minus 70 freezers, and we’re going to need capacity and those if that’s the drug that comes out,” he said. “But again, we don’t know how HHS might allocate that. Do we even have to store it? Or does it arrive just in time in some fashion? So there’s just so many of those questions. We’re preparing as best we can.” Swanson said the CDC is advising hospitals not to purchase ultra-cold freezers at this time. “The vaccines will be shipped (in containers) with dry ice that can be maintained for 10 days,” he said. “Manufacturers are working on vaccines at warmer temps.” Melanie Fisher, supply chain manager with Southfield-based Beaumont Health, said Beaumont’s eight hospitals are devising a system to track the vaccine’s double doses, ordering ancillary products, stocking inoculation areas and ensuring facilities have sufficient cold storage. “We are doing this as we prepare for flu season, which will come at that same time as coronavirus surge ... this notion of a twindemic people are talking about,” Fisher said. “We are preparing and we don’t even know what vaccine is ultimately going to be the one that’s approved. There actually may be two or three.” Polls have shown a steady 16 point decline in the willingness of people to be vaccinated against the coronavirus. Only 50 percent of those surveyed said they would get the vaccine. “I think that right out of the box people are going to be so tired of COVID that, especially if you’re vulnerable, you’re going to want to get it,” said McKenna, adding he would be first in line if the data shows safety and effectiveness. “I’m more concerned about what’s the efficacy, because you may have one vaccine at 50 percent effective and another one that’s 90 percent effective. So then the question is to get the one at 50 or wait for the one that is 90 percent,” he said. Contact: jgreene@crain.com; (313) 446-0325; @jaybgreene

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VACCINE

From Page 1

It is possible the nation’s other two major distributors, Owens & Minor and Cardinal Health, will eventually play a role in transporting the vaccines to health care facilities. At least six and as many as a dozen COVID-19 vaccines are expected to be on the market by the end of 2021. Redfield has said it is possible that at least one coronavirus vaccine will be ready for shipment by January, but most experts Crain’s interviewed said the date is unclear because drug manufacturers haven’t released enough scientific data on the trials to judge effectiveness. Moreover, experts say most vaccines take years to develop because of the safety steps and multiple populations that need to be tested. Predicting a workable vaccine in less than a year is a highly risky proposition. But because of dire circumstances with the pandemic in which more than 1.1 million people have died worldwide, including 222,000 people in the U.S. and nearly 7,000 in Michigan, the federal government launched Operation Warp Speed, a $10 billion vaccine development partnership between government and industry. Operation Warp Speed’s goal is to deliver 300 million doses of a safe and effective vaccine by early next year and has contracted with at least seven COVID-19 vaccine makers. Bob Swanson, director of immunization with the Michigan Department of Health and Human Services, said he is in close contact with the CDC to coordinate and direct McKesson to the chosen vaccine distribution sites in Michigan. McKesson is the largest seasonal flu vaccine distributor in the U.S. and annually ships up to 150 million doses of all vaccines to public health clinics, hospitals, physician offices, nursing homes, pharmacies and other care facilities. In late September, Michigan became one of 65 states, territories, tribal and local jurisdictions to receive funding from the CDC’s $200 million coronavirus vaccine preparedness program. Michigan’s share, based on population, was $5.9 million to help the state plan for and implement COVID-19 vaccination services.

One wild card in the distribution planning is which vaccine will first be distributed. The messenger RNAbased (mRNA) Pfizer vaccine, for example, requires ultra-cold temperatures for storage. The other vaccines have more normal cold-chain storage requirements, Swanson said. Most mRNA-based vaccines, such as the Pfizer and Moderna types, must be stored at lower temperatures to keep them stable, said Daniel Kaul, M.D., professor of internal medicine at Michigan Medicine in Ann Arbor and a principal COVID-19 researcher.

tery property after the last burial plots are sold. Under Public Act 251 of 1968, 15 percent of burial, entombment and columbarium rights sold are deposited into the cemetery’s perpetual care fund; only interest and dividends from those funds can be used and they are set up for the long-term care of the property. But Sloane says the funds overall are not well-funded enough. “That was not adequate and there are very few cemeteries in Michigan that are properly funded,” he said. “Seven hundred have already been

given back to municipalities. Very few were actually built by cities; they just went bankrupt and the cities took them over.” Larry Michael, vice president of Midwest operations for Houston-based Park Lawn Corp., which owns and manages 28 cemeteries in Michigan, said the cremation increase has been felt in those funds. “States have these because at some point, when there is no more revenue coming in because there is nothing left to sell, there is this fund,” Michael said. “With cremation rates growing, that has impacted it. But every in-

the U.S. and a fifth is expected to be announced this month by Novavax. Two coronavirus vaccines are under development by Pfizer at the Michigan Center for Medical Research in Rochester and by Moderna at Henry Ford Health System in Detroit. Johnson & Johnson/Janssen and AstraZeneca clinical trials, which had been underway at the University of Michigan, have been paused in the U.S. over safety concerns. The AstraZeneca trial has been paused for more than a month after two people became sick. The J&J trial was paused

standard vaccine refrigerator. The Maryland-based drugmaker is taking a more traditional approach to vaccine development. It is using viral proteins rather than an mRNA genetic code approach to train the body against the coronavirus infection. Merck and Sanofi, two veteran vaccine makers that got into the vaccine race this summer, are said to be close to beginning Phase 3 trials. Once one or more vaccines are approved by the FDA, likely through an emergency use authorization, the companies will begin mass production. Chaz Calitri, Pfizer’s vice president of operations for sterile injections, said the drug company has been packaging the filled vaccine doses in Kalamazoo for its Phase 3 trial since earlier this year. More than 300 workers have been hired for the coronavirus vaccine effort, he said. “If the vaccine is successful and we launch it, we expect to hire up to 700 people” in Kalamazoo, Calitri said. The plant has about 3,000 employees now. Pfizer’s COVID-19 clinical trials have been expanded to more than 44,000 people, including adding more minorities and those as young as age 12, officials said. “What we will do is have the vials (of vaccine) packed in small pizza-shaped boxes and placed in a container packed in dry ice. It will be like a container in a container that will have a tracker,” or a sensor that will monitor location and temperatures, Calitri said. Pfizer said it was working on a plan to store its vaccines for up to 24 hours at standard refrigeration. Another question is whether the vaccines will be a one-dose shot, like the proposed Johnson & Johnson/ Janssen or Merck vaccines, or twodose shots like the Pfizer, Moderna and others. Two doses will require careful tracking of people and appointment callbacks, similar to the vaccine for shingles.

“IT’S NOT LIKE THE VACCINES THAT YOU KNOW, THE SEASONAL FLU VACCINE THAT YOU MIGHT GET AT A TARGET OR CVS, OR YOUR DOCTOR’S OFFICE.” — Julie Swann, professor of industrial and systems engineering and department chair at North Carolina State University

“The Moderna and Pfizer vaccines have to be frozen because they degraded at less frozen temperatures,” Kaul said. “We have many of those freezers in large medical centers because we do a lot of research and need those ultra-cold temperatures, but even community hospitals might struggle with that.” Kaul said the drug companies are trying to develop vaccines that can be stored at normal refrigeration temperatures so retail pharmacies and physician offices can store them. The ultra-cold requirement “is a huge concern, especially in less developed countries with less access to cold freezers,” Kaul said. “You don’t want the vaccine to go bad. That would be a disaster if someone got a bad dose.”

Will vaccines be ready in January? Four COVID-19 vaccines have begun Phase 3 human clinical trials in

last week when one person came down with an unexplained illness. Still, the CEOs of Pfizer and Moderna say their vaccines could be mass produced on a limited scale by the end of the year. The other drug makers say their vaccines are showing promise, but some experts believe mass production is more than six months away. Pfizer’s mRNA-based vaccine now requires ultra cold storage of -70 degree Celsius, rendering administration by doctor’s offices, clinics and retail pharmacies virtually impossible. Moderna’s vaccine, also using the newer mRNA-based technology, currently requires -20 Celsius temperature, allowing for greater storage flexibility. The company also said its vaccine can be kept in normal vaccine refrigerators for up to seven days. Novavax has said its vaccine can be stored at 2 to 8-degree Celsius temperatures in an unfrozen, liquid formulation that can be kept in a

“THE MODERNA AND PFIZER VACCINES HAVE TO BE FROZEN BECAUSE THEY DEGRADED AT LESS FROZEN TEMPERATURES. WE HAVE MANY OF THOSE FREEZERS IN LARGE MEDICAL CENTERS BECAUSE WE DO A LOT OF RESEARCH AND NEED THOSE ULTRA-COLD TEMPERATURES, BUT EVEN COMMUNITY HOSPITALS MIGHT STRUGGLE WITH THAT.” — Daniel Kaul, M.D., professor of internal medicine at Michigan Medicine

ternment right has a percentage, a cremation has a percentage that goes into a perpetual care fund. So some cemeteries, the funds may have actually increased, depending on the product they’ve been selling.” According to the Michigan Department of Community Health, preCOVID-19, the state averaged 8,201 deaths per month between January 2019 and February 2020, although that figure during the pandemic has increased to an average of 8,924 per month, with a high of 13,049 deaths in April and 5,399 reported in September. And Chilcote said it’s unlikely that new, sprawling cemeteries — akin to the 300-acre Resurrection Cemetery in Clinton Township — will be developed regularly in the future given the cremation trend. Some of the newer ones are Glen Eden East, developed in 2004 along 26 Mile Road in Macomb Township; the federal Great Lakes National Cemetery in Holly, established in 2005; and Guardian Angel Cemetery in Rochester, developed in 2003 by Mt. Elliott Cemetery Association. “Those days of 300-acre cemeteries are done,” he said. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB Experts also are concerned that the hundreds of millions of vaccine doses will also require ramping up production of syringes and pharmaceutical-grade glass vials needed to transport and administer the vaccines. Operation Warp Speed has awarded major contracts to companies to build up inventories. Julie Swann, a professor of industrial and systems engineering and department chair at North Carolina State University in Raleigh, said there are a number of logistical challenges in transporting and distributing COVID-19 vaccines, especially the Pfizer vaccine that appears the furthest along toward approval. “It’s not like the vaccines that you know, the seasonal flu vaccine that you might get at a Target or CVS, or your doctor’s office. It’s different than that,” said Swann, who is a vaccine supply chain expert. “It has it has much greater perishability and needs to be kept at a much colder temperature. There’s also going to need to be supplies of dry ice through the supply chain.” The Pfizer vaccine, for example, needs to be shipped in containers with dry ice that hold 975 doses. “So you’re going to send this specialized box of 1,000 doses to a hospital and you’re only allowed to open it once a day because it will be frozen and you have to take out enough for those people,” Swann said. Vaccines with smaller doses per box, such as Moderna’s, which is planned to be released with orders of 100 doses, can be shipped to physician offices, clinics and retail pharmacies, Swanson said. “If it happens to be the Pfizer vaccine, with the ultra-cold requirements, it is likely to be shipped directly from the drug company to the hospital or large clinic,” Swanson said. CVS Health spokesman Mike DeAngelis said its Minute Clinic sites are well-positioned to administer COVID-19 vaccines. “We look forward to playing a significant role in the vaccine distribution process, and our experience of providing millions of flu vaccinations each year is helping inform our plans,” DeAngelis said in an email. Contact: jgreene@crain.com; (313) 446-0325; @jaybgreene

OCTOBER 19, 2020 | CRAIN’S DETROIT BUSINESS | 21

THE CONVERSATION

Deloitte’s Tina Wheeler navigates health care industry in COVID age DELOITTE: As newly appointed national sector leader for its health care practice in the U.S., Michigan native Tina Wheeler manages Deloitte’s accounting, auditing and consulting services to large multisystem health care payer and provider clients. Her expertise is audit services, but she oversees 350 partners that deal with mergers and acquisitions, strategic planning, divestitures and SEC regulatory reporting. | BY JAY GREENE ` You’ve been with Deloitte for 30 years and now promoted to national health care leader responsible for 8,000 employees, 350 partners in dozens of offices in the U.S. What is your day like? I’m an audit partner by day. I still provide audit services to clients in the provider and payer industries. Two and a half years ago I took over as the West Michigan managing partner. I lead our Grand Rapids office. My third hat, the last seven years I’ve become the U.S. and global health care audit leader. I help our partners and managing directors navigate new accounting and auditing issues as they arise. We are working so hard, 10-12 hour days. It’s a different work. We’ve really been trying to focus on the health and well-being of our people and helping them navigate (the impact of the virus). ` You were in the Deloitte office at the Renaissance Center for years. Do you live in Grand Rapids now? Let’s just put it this way. I’m in Michigan. When I was asked to take over the managing partner role, I still had significant clients in Detroit to serve. I have a home in Novi. I still have an apartment in Grand Rapids, but with COVID, our offices are closed right now. I grew up in a small town, Marshall, in a lake house. I grew up on a lake. I’m all about if you can get a paddleboard or a water ski, I’m there. ` How has COVID-19 affected your job and client work? We’re such a large global firm. The example I’d like to give is whether you were at our Chicago office, or New York office, we’re on high floors and in big skyscrapers and have to navigate elevators. With the social distancing, we don’t want to put our employees at risk. We’ve been really careful. I started working remotely in mid-March. I was thinking summer, after the Fourth of July holiday, we’d be back. Then I said after Labor Day. Now, Jan. 4 is the

date we’re targeting. We don’t know. If there’s a second wave everyone’s going to make different choices. I took the test and I didn’t have antibodies, but knock on wood, I haven’t had it. I’ve been cautious. I use hand sanitizer. I wear a mask. I do feel like maybe, inevitably, we’re all going to get it in some fashion.

Tina Wheeler, national sector leader, Deloitte

` Is Deloitte still hiring? Has it slowed because the work has changed? We just started our first-year hires at the end of September. We have another round coming in early December for audit. The whole onboarding process has changed. It’s all Zoom meetings. We’ve given subsidies for some of our younger employees to go out and get better office chairs because many, the ones we employ right out of college, do not have the best place to work at home.

them an instant message and say, “How are you doing?” Everybody’s just trying to learn this new virtual world and how to manage it. ` What are the key health care issues your clients are facing this year? The providers are all recovering from big financial losses because of the drop in patient volumes and fewer procedures. We’re just focused on COVID. Detroit was a hot spot and there were specific health systems that were hit pretty hard. The payers all had claims volume that went down significantly. They’re trying to navigate when and how things will ramp up. With pharma and the life sciences companies, on the other end, they’re trying to develop vaccines and work on therapeutics. ` How will the health care industry change because of the COVID-19 pandemic? There’s a huge focus on the COVID19 pandemic and the responses are different depending on the specific segment of the health care industry. It’s been interesting to see how the pandemic has been a catalyst for telehealth and virtual health and how that became an imperative during this pandemic. We are now where we would be five years from now. The technological disruptors have been fascinating. You are going to see more mergers and acquisitions and consolidation in the industry. Health systems will continue to get bigger and managing all that data for their businesses will be important. Next year, Jan. 1, the pricing transparency rule comes that requires hospitals to publish their rates and price information. That’s pretty controversial and a big thing I have to navigate. Health systems need to continue to understand patients and their buying patterns so they can quickly adjust. There will be continued disruption and health care organizations need to be nimble and flexible to use change for your benefit.

` The accounting and consulting field has always been a traveling road show, meeting clients and looking at the books. How do you do your job virtually? First and foremost, whenever you take on a new role, it’s important that you get to know people. I’ve got a lot of people to meet. I know many of the partners and managing directors in health care, but reintroducing myself and making those connections is so important so we can have a great relationship, and I can help them grow our business, our clients. It’s a unique challenge taking on a role like this in a virtual world. In the old days, pre-COVID, I would have been traveling across the country, meeting with our teams, our people in person, and doing the same with our clients. We do a lot of Zoom and to stay in touch, I’ll send

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RUMBLINGS

Khaldun talks of rising cases, personal experience at health summit Joneigh Khaldun, M.D., the state of Michigan’s chief medical executive told a virtual audience at Crain’s Health Care Leadership Summit that “It’s not a surprise” that COVID-19 cases are rising — mostly related to social gatherings that “quite frankly, they aren’t supposed to.” She spoke on the steadily increasing number of cases in Michigan, the prospects for how a vaccine will roll out, and what COVID-19 has taught us about the intersection of the health care system and public health in a wide-ranging interview with Crain’s Executive Editor Kelley Root. Michigan’s COVID-19 cases have risen sharply since mid-September. Positive cases set a one-day record

View the summit online

Crain’s Executive Editor Kelley Root (left) and Joneigh Khaldun, M.D.

last Thursday, topping 2,000 in a single day for the first time. Hospitalizations and deaths have also risen, though far less drastically, and those levels remain well below the peaks seen in April. The seven-day average of daily deaths

22 | CRAIN’S DETROIT BUSINESS | OCTOBER 19, 2020

statewide stood at 15 late last week, the highest level seen since June. That figure peaked at over 140 in April. Khaldun also talked on a personal level of her experience as an emergency room physician — and as a

To see the interview and all the discussions from Crain’s Health Care Leadership Summit, go to crainsdetroit.com and click on “Webcast Archive” under the “Events” tab. Other panels included discussions of COVID-19 research, social determinants of health and mergers and acquisitions in health care.

patient after a life-threatening brain bleed she suffered after giving birth — and how that led her into her current public health role. “It made me really motivated to ... do what my life’s work was and to find a new path,” Khaldun said.

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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 week 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 2020 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

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