SMALL BUSINESS The health of small firms is top of mind for Brian Calley.
WORKFORCE: Employee health and wellness during COVID and beyond. PAGE 8
PAGE 18 CRAINSDETROIT.COM I NOVEMBER 23, 2020
COPING WITH COVID-19
DESPERATE TIMES Cutter’s owner Chuck Nolen said he is down $500,000 in revenue from last year. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS
Also in this package
Small business owners in Michigan worry that ‘pause’ could be death knell
Commercial landlords should brace for a rough ride. Page 16
BY KURT NAGL, JASON DAVIS AND ANNALISE FRANK
All Paul Glantz wants for Christmas is his business back. That’s at the top of the wish list for owners of movie theaters, bowling alleys, entertainment venues and dinein restaurants in Michigan forced to
close again right at the start of the busy holiday season. Worries abound that the “threeweek pause,” imposed by the state to beat back a surge of COVID-19 cases, could extend through the holidays and sound the death knell for many struggling small businesses. Glantz, chairman of Troy-based
Emagine Entertainment Inc., said revenue loss for his chain of 21 movie theaters has topped $40 million since the pandemic started in March. Theaters were closed for more than half a year before being allowed to reopen Oct. 9, while the ban on dining in lifted June 8. “To put us out of business again, I believe, is unjust and wrongful,” Glantz
COVID-19 safety compliance complaints surge, overwhelming state oversight. Page 17
said business suffered from a lack of new product from Hollywood and a hesitation among guests to return. See DESPERATE on Page 16
HEALTH CARE
ENERGY
Poppe faces big challenges in new role BY JAY GREENE
CMS Energy CEO Patti Poppe is taking on a big new job heading up a bigger company that has had some of the biggest problems in the utility industry. Poppe was named last week as the next CEO of the mammoth Pacific
Gas & Electric Co. The challenge is huge: PG&E has faced years of criticism for lack of infrastructure maintenance that led to a guilty plea to 84 counts of manslaughter earlier this year for deaths in a fire caused by its equipment. Poppe, 51, who has served as president and CEO of CMS Energy (NYSE:
VOL. 36, NO. 47 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED
CMS) and Consumers Energy since 2016 after joining the company in 2011, will step down effective Dec. 1. An industrial engineer by training, she Poppe worked at General Motors Co. for 15 years before joining DTE Energy Co. in 2005 for five years. See POPPE on Page 17
NEWSPAPER
said. “I question whether our governor ever has studied actual science or data.” It is not the shutdown orders alone that crushed “dinner and a movie” and other conventional entertainment options — the general fear of the coronavirus has led to more reclusive lifestyles. Even in the short time open, Emagine was still losing money. Glantz
Hospitals gear up for long winter surge as beds, ICUs fill BY JAY GREENE
Hospitals are gearing up for a catastrophic surge of COVID-19 patients over the next three months that could result in another 200,000 deaths nationwide and stretch the limits of staff, bed and intensive care capacity, and the availability of personal protective equipment. Many critical care doctors, nurs-
WHAT ARE MICHIGAN’S TOP 3 PRIORITIES FOR STATE HEALTH REFORM? READ THE REPORT AT crainsdetroit.com/MAHP
es and other health care workers expect to work 12- to 16-hour shifts to take care of the numbers of increasingly ill patients — not just from the coronavirus, but from a combination of influenza and the normal winter uptick in medical activity with heart attacks and strokes that typically happen at the end of the year, experts say. See HOSPITALS on Page 16
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COVID IMPACT
THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT PFIZER: VACCINE SHOWING AS 95 PERCENT EFFECTIVE THE NEWS: Pfizer says that more interim results from its ongoing coronavirus vaccine study suggest the shots are 95 percent effective and that the vaccine protects older people most at risk of dying from COVID-19. The announcement, just a week after Pfizer first revealed promising preliminary results, came as the company is preparing within days to formally ask U.S. regulators to allow emergency use of the vaccine. WHY IT MATTERS: The results add to a similar 95 percent effectiveness rate for another vaccine being developed by the Massachusetts-based drugmaker Moderna, raising hopes for a return to “normal” sometime next year. New York-based Pfizer’s Kalamazoo complex is expected to be a key manufacturing hub for its vaccine.
UAW’S ASHTON GETS PRISON TERM THE NEWS: A former United Auto Workers vice president who took a $250,000 kickback on a watch contract was sentenced Tuesday to 2 1/2 years in prison, the latest punishment in what the government calls “systemic” corruption at the highest ranks of the union. Joe Ashton, 72, of Ocean View, N.J., had hoped for house arrest, noting his wife has multiple sclerosis and needs constant care.
WHY IT MATTERS: Ashton led the union’s General Motors department until July 2014 and also had a seat on the automaker’s board. He awarded a $3.9 million contract from the UAWGM training center for thousands of watches that were produced but never given to union members. In exchange, he got a $250,000 kickback from the vendor, a chiropractor.
DELTA TO EXTEND OPEN MIDDLE-SEAT POLICY THE NEWS: Delta Air Lines Inc. will keep blocking middle seats through the first quarter of 2021, outlasting other U.S. carriers, because it wants to reassure customers about the safety of aircraft cabins. WHY IT MATTERS: While the dominant carrier at Detroit Metropolitan Airport considers it “safe to sit in the middle seat” despite the coronavirus pandemic, the company wants to assuage any potential passenger anxiety, CEO Ed Bastian said. Delta will hold middle seats open through March 30 instead of Jan. 6.
FORD UNVEILS PLAN FOR BOOK DEPOSITORY
GM BACK IN INSURANCE BUSINESS
THE NEWS: Ford Motor Co. revealed plans Tuesday to transform a long-vacant book warehouse into a hub for automobile innovation in Detroit’s Corktown neighborhood, the site of the automaker’s planned $740 million project to create a place where new transportation and mobility ideas are nurtured and developed.
THE NEWS: General Motors said it is venturing back into the insurance business after a 12-year hiatus, using its OnStar telematics service to help determine a customer’s rates and assess damages after a crash.
WHY IT MATTERS: The former Detroit schools Book Depository was designed by famed architect Albert Kahn. It has been vacant following a 1987 fire. Construction will start early next year. Move-in is expected in early 2022.
LANDMARK OFFICE CENTER
Little Caesars Arena loses out on March Madness action Detroit will miss out on March Madness action next year after the NCAA announced last week that the popular men’s college basketball tournament will likely be played entirely in Indianapolis. The 68-team tournament, typically spread across a dozen host sites throughout the country, was scheduled to play at Little Caesars Arena for first- and second-round games March 18 and 20. “In recent weeks, the Division I Men’s Basketball Committee has engaged in a thorough contingency planning process to determine the most effective way to conduct a safe and healthy March Madness for all participants for the 2021 championship … The committee has decided the championship should be held in a single geographic area to enhance the safety and well-being of the event,” the NCAA said in a statement. Tournament officials said they are in preliminary talks to host all the games in Indianapolis, which had already been selected to host the Final Four. Little Caesars Arena in Detroit. | LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS
WHY IT MATTERS: It’s a key component to the “zero crashes” part of GM’s zero crashes, zero emissions and zero congestion mission, said Andrew Rose, president of OnStar Insurance Services. Customers can opt into sharing driving data for a usage-based insurance premium, or they can stick with traditional factors for rates.
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2 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
GOVERNMENT
COMMERCE
Whitmer makes most of executive powers COVID, Enbridge actions anger critics BY NICK MANES
GROWING WITH THE GLUTEN-FREE MARKET Ethel’s Baking Co. in October moved its headquarters from St. Clair Shores to a 20,000-square-foot space in Shelby Township. | ETHEL’S BAKING CO
Ethel’s Baking sweetens major expansion with new product rollout BY JASON DAVIS
Business is booming for Ethel’s Baking Co. — so much so that the company, established in 2011, has moved into a new space that will allow it to better serve its customers and add a new line of products. After more than eight years in St. Clair Shores, Ethel’s in October moved its headquarters to Shelby Township. The company, specializing in gluten-free baked goods, is now in a 20,000-square-foot space — a big move up from 2,700 square feet in its former St. Clair Shores home, according to founder Jill Bommarito. Bommarito, a graduate of Michigan State University who started her career in banking before moving into real estate, then food production, said she loved the St. Clair Shores location. But the area had its
limitations, she said, and Ethel’s Baking needed to be in a standalone space in order to produce gluten-free products. “We tried to find a facility for a year,” Bommarito said. “We looked in Detroit, in the suburbs. We were fortunate to find a building without a tenant that suits our needs. (The move) is the right decision for us.” Bommarito, 54, is leasing the new site at 15000 Commercial Drive for five years with two additional fiveyear options. She declined to disclose financial terms of the lease. Bommarito said she invested $2 million in the new site, which went toward building and HVAC upgrades. The HVAC upgrades are necessary, she said, because her products are not mass produced on a conveyor belt. Temperature, timing and humidity make a big difference in Ethel’s baked goods.
“(The system) allows us to make everything exactly the way we want to every time,” Bommarito said. “That’s the key: Never compromise.” Ethel’s expansion comes amid a growing gluten-free market, which was estimated at $21.61 billion in 2019, according to Food Business News. Gluten-free sections of grocery stores are taking up more shelf space as consumers seek more options. Ethel’s Baking expects to see close to $10 million in retail sales in 2021, Bommarito said. Bommarito, who has a gluten allergy, said what’s helped the market explode is the number of people who have made a gluten-free lifestyle choices for other reasons. Consumers purchasing gluten-free products for family and friends is big, too, she said. See ETHEL’S on Page 15
“(THE SYSTEM) ALLOWS US TO MAKE EVERYTHING EXACTLY THE WAY WE WANT TO EVERY TIME. ” — Jill Bommarito, founder, Ethel’s Baking Co.
CRAIN’S NEWS
KC Crain named CEO of Crain Communications BY CRAIN'S DETROIT BUSINESS
KC Crain is the new CEO of Detroit-based Crain Communications Inc., parent company of Crain’s Detroit Business, Automotive News and nearly 20 other trade and business titles. Crain, the 40-year-old former president and COO, succeeds Keith Crain, his 79-year-old father, as CEO; the elder Crain remains chairman of the company’s board, which approved the change Nov. 18. It is effective immediately. In a news release, the company said there has been a 50 percent increase in new paid subscribers this
year as a result of an effort that started prior to the global pandemic. “KC has done a terrific job of steering our company in recent years, inKC Crain cluding strategic acquisitions. This year in particular has been challenging for many media companies, and KC and his entire team have led us to a successful year,” Keith Crain said in the release. Crain Communications was founded in 1916. Besides its Detroit
publications, its portfolio includes Advertising Age, Modern Healthcare and business titles in Chicago, Cleveland and New York. The company also hosts hundreds of digital events and conferences each year. As president, KC Crain oversaw the acquisition in 2019 of GenomeWeb, a New York-based digital news source focused on advanced tools in molecular biology research and molecular diagnostics. “Leading the company my grandfather started 104 years ago is a true honor,” KC Crain said. “Our audiences have never been stronger and the growth prospect of this business is really exciting. Our platforms con-
tinue to evolve in amazing ways to serve our readers.” In addition to leading Crain Communications, the younger Crain is involved in commercial real estate and has a 50 percent ownership of the Vinsetta Garage restaurant in Royal Oak. A graduate of Denison University in Ohio, KC Crain is board chair for the Detroit Children’s Fund and a board member for the Young Presidents Organization and the College for Creative Studies. He started at Automotive News as a reporter in 2002 and has held a variety of roles since, including group publisher, executive vice president and director of corporate operations.
Gov. Gretchen Whitmer flatly rejects any narrative thrown around by critics that she’s “going it alone” and not including the Republican-controlled state Legislature in her pandemic-related orders and other actions that affect business and state residents. But there’s little dispute that the first-term Democratic governor is making the most of the Whitmer executive powers made available to her. From her response to the once-ina-century COVID-19 crisis to a recent decision to withdraw the easement of the Enbridge Line 5 pipeline to shifting dollars in a state budget, Whitmer has used executive powers in a way that makes some political observers wonder what future state chief executives may do. “I think this really does usher in a new era of exit of executive authority,” said Brian Calley, a former lieutenant governor under Republican Rick Snyder, and the current president of the Small Business Association of Michigan in Lansing. “Because it’s hard for me to imagine future governors — including Republicans — not doing the same thing.” Calley, a Republican who said that despite policy disagreements he still considers the governor a friend, acknowledged that all governors have found new ways to use the powers of their office. Indeed, Snyder while in office starting in 2010 beefed up the state’s existing emergency manager law, allowing the state to take over control of cities deemed to be in fiscal trouble. The law was repealed by voters in a referendum in 2012, but Snyder signed a new law that year. “It’s not a new thing,” Samuel Bagenstos said of Michigan governors seeking out new ways to flex the muscles of their office. Bagenstos, the Frank G. Millard Professor of Law at the University of Michigan with a focus on constitutional and civil rights litigation, is a Whitmer appointee, chairing her Michigan Employment Relations Commission. He was also a Democratic candidate for the Michigan Supreme Court in 2018. “I think this is in some ways what governors do. They look for their powers,” Bagenstos said. “And there are some things that they they can’t do by themselves. No matter what, the Legislature has the power of the purse for the most part. So, you know, they’re always going to have to negotiate with the Legislature.” See WHITMER on Page 15 NOVEMBER 23, 2020 | CRAIN’S DETROIT BUSINESS | 3
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4 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
Bloomfield Hills-based Contour Companies LLC wants to redevelop the Northland Center site in Southfield into what would become the state’s largest apartment complex. | CITY OF SOUTHFIELD
A step forward for Northland Center redevelopment in Southfield The Southfield City Council has approved creating a commercial rehabilitation district for the Northland Center site that’s the target of an ambitious deKirk velopment plan PINHO by a Bloomfield Hills-based multifamily company. Rochelle Freeman, the city’s business and economic development director, said Tuesday morning that the council unanimously approved establishing the district. That allows Contour Companies, or another developer, to seek a property-tax freeze for a period of up to 10 years, although council documents say that Contour would only seek a four-year freeze. “We are hopeful that things will work out with Contour,” Freeman said. Crain’s reported on Nov. 15 that Contour, which is headed up by David Dedvukaj, envisions turning 97 acres of the 120-acre property into what would become the state’s largest apartment development, carved out into three separate residential components and another large commercial component: Fourteen new five-story buildings with 1,339 apartments would be constructed, and six of those new buildings would have first-floor retail space totaling 95,000 square feet. Another 254 lofts like live-work spaces and artist lofts would be built out in the existing mall’s vacant retail bays. In addition, the former J.L. Hudson’s department store would be turned into something called the Hudson City Market, which would have food, home furnishings and entertainment uses totaling 337,000 square feet. In a second phase, another 1,292 units, including some townhomes, would be built. In all, that would create 2,885 units and 432,000 square feet of commer-
The Fisher Body Plant No. 21 on Hastings Street is owned by the city of Detroit. | KIRK PINHO/CRAIN’S DETROIT BUSINESS
cial space. The first phase of the project is expected to come in at $285 million, although the cost for the second phase is not known. The city is selling Contour the 97 acres for $11.1 million, or $114,433 per acre.
“WE ARE HOPEFUL THAT THINGS WILL WORK OUT WITH CONTOUR.” — Rochelle Freeman, Southfield business and economic development director
Detroit in talks with possible Fisher 21 developer A Detroit News piece last week reminded me that the city of Detroit is the owner of the Fisher Body Plant No. 21 at 6051 Hastings St. off the I-75 and I-94 interchange. The city has no current plans to issue a request for proposals or request for qualifications for the rundown industrial building, which has sat unused for years. However, there “has been some interest,” a city spokesperson said, adding that they are engaged in due diligence but there is currently no letter of intent. I asked for the name of the developer investigating the property but have not yet heard back yet.
According to CoStar Group Inc., it is 630,500 square feet and was designed by Albert Kahn a century ago. Curbed Detroit noted in 2014 that there are likely environmental challenges with any redevelopment.
G-Star Raw closes after bankruptcy filing Netherlands-based G-Star Raw C.V. shuttered all of its locations, including its downtown Detroit spot at 1419 Woodward Ave., in September after filing for Chapter 11 bankruptcy protection. A report in Retail Dive at the time says that the high-end denim retailer sought but was unable to secure rent concessions from landlords during the COVID-19 pandemic, and that it has been concerned about its brickand-mortar profitability for some time. Court documents also say “a number of its stores was also adversely affected by the recent civil unrest and a significant amount of inventory in the affected stores was looted.” Last week, Dan Gilbert’s Detroit-based Bedrock LLC said it filled the G-Star space temporarily with DOSE Collective, which has highend retail products including gifts, accessories and clothing from 20 small businesses. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
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EDITORIAL
COMMENTARY
Time to act on relief for businesses, employees
I
f there’s any common ground to be found amid COVID-19, it’s the agreement that financially struggling businesses — and their laid-off employees — need help. Officials on both sides of the aisle agree more should be done. But the will to actually get there seems to be missing. Michigan officials are urging Congress and President Donald Trump to act; Congress is at a stalemate over a second stimulus package, and negotiations have yet to restart. All of which adds to a perfect storm as the state again restricts business activity to stem a second wave of coronavirus bearing down on Michigan. This time, there are no more $1,200 stimulus checks, no paycheck-protection loans, and no more expanded unemployment benefits. The state’s most recent public health order targeting restaurants, theaters and casinos will mean “catastrophic failure” for many small businesses, according to Brian Calley, president of the Small Business Association of Michigan. “They’re just in no condition to weather these types of conditions, given the fact that some of them were required to be closed for five or six months earlier this year,” Calley told Crain’s earlier this week, urging Congress and the president to act. Gov. Gretchen Whitmer has acknowledged the blow to business and also urged federal officials to enact a relief law. But there are ways both the federal and state government could help. Congress should: ` Resume negotiating an extension of the CARES Act, the massive COVID relief bill passed by Congress in March. The act, which expires Dec. 31, extended unemployment benefits to 39 weeks instead of the typical 26 weeks established by the states. Also expiring is a critical provision allowing independent contractors and self-employed “gig” employees to receive weekly help similar to other unemployed workers. ` Offer another round of PPP (Paycheck Protection Program) loans and provide more streamlined guidance to banks and businesses on how to get existing loans forgiven. The program itself was a success — more than $16 billion in PPP funds were provided
in Michigan to 128,159 businesses, according to SBA data through Aug. 8. But confusion over how to get the loans forgiven remains a major pain point. State lawmakers should: `Make permanent a law Whitmer signed in October extending unemployment benefits for jobless Michigan workers from 20 to 26 weeks. The bill, sent to the Democratic governor by the GOP-controlled Legislature, was a temporary extension that expires at year’s end. Making the extension permanent, Whitmer has argued, is necessary for state benefits to be coupled with federally funded extensions for the long-term unemployed. `In the absence of any additional aid, even small measures of relief deserve consideration. As Crain’s senior editor Chad Livengood reported last week, some businesses owners want lawmakers to lighten their property tax bills to at least partially compensate for their losses. Sen. Peter MacGregor, R-Rockford, proposed extending tax relief on penalties and interests for businesses that never reopened, such as professional sports stadiums and music venues. “A lot of these places just need more time” to pay tax bills, MacGregor said. It’s not an idea likely to get much traction in the lame-duck Legislature, however. In July, Whitmer vetoed legislation that would have let businesses delay paying sales, use and income taxes. She contended such a measure would “push many local budgets over the precipice into fiscal crisis.” But the governor is ignoring a growing reality: Small businesses shuttered by her administration’s orders to protect public health are now on the edge of collapse. That will cause defaults on real estate leases, lead to empty storefronts and depressed property values that will ultimately hurt the financial bottom line of municipalities and schools. And it will lead to job losses, resulting in lost income tax for the state and more strain on an already strained welfare system. The spring shutdown hurt the economy, but the CARES Act helped see businesses and individuals through and led to a surprisingly strong rebound through the summer. Without similar aid now to bridge the country to widespread vaccination, it’s going to be a very long winter.
We, the undersigned, representing a diverse group of women business leaders in Michigan, urge all our citizens, including our elected officials, to commit to following scientific guidance as we face a surge of COVID-19 cases in our state. In addition, we urge civility in public debate — without personal attacks — as we continue to navigate the pandemic and steer toward an economic recovery. Throughout this unprecedented and challenging year, women CEOs and business leaders across Michigan have taken decisive actions that transformed our companies’ business apparatuses, quickly transitioned our workforces to new environments, and interrupted our business operations with two priorities in mind — to slow the pandemic and to keep our economy going. The coronavirus pandemic is a global health emergency that has forced quick and decisive action by executive leaders at businesses of all sizes. It is clear the decisive actions by the state of Michigan’s chief executive in managing this emergency are saving lives. The governor works closely with businesses like ours to ensure we have the support and resources we need to protect our employees, customers, and their families. This is exactly the kind of strong leadership we need as our state continues to fight COVID-19 at this critical time. Sadly, as the pandemic continues, acri-
This op-ed was signed by the following leaders: `Tonya Allen, president and CEO, Skillman Foundation
`Andi Owen, president and CEO, Herman Miller Inc.
`Lizabeth Ardisana, president and CEO, ASG Renaissance
`Dr. Ora Hirsch Pescovitz, president, Oakland University
`Beth Chappell, retired president and CEO, Detroit Economic Club
`Vivian Pickard, president and CEO, The Pickard Group, LLC
`Lisa Corless, president and CEO, AF Group
`Patti Poppe, president and CEO, Consumers Energy
` Audrey Gregory, CEO, Detroit Medical Center
`Lynda Rossi, executive vice president, Blue Cross Blue Shield of Michigan
` Darienne Hudson, president and CEO, United Way for Southeastern Michigan
`Andra Rush, president and CEO, Rush Group `Nancy Schlichting, retired CEO, Henry Ford Health System
`Denise Ilitch, president, Ilitch Enterprises LLC `Sabrina Keeley, chief operating officer, Business Leaders for Michigan `Judy Kelly, vice president-client sales, IBM Corp. `Kathryn Levine, CEO, Blue Care Network `Florine Mark, president and CEO, Weight Watchers `Linda Orlans, founder & executive chair, Orlans PC
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. 6 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
monious public discourse has escalated. Last month, law enforcement officers announced that the governor had become the target of a multistate domestic terrorist plot to kidnap and possibly kill her. We were shocked and dismayed to learn of the planned attacks on our governor due to her efforts to keep our citizens safe and our economy open. No public official should be subject to any form of threat to the safety of their persons or families. When we disrespect and distort the views of others, we undermine our democracy by ultimately excluding and silencing divergent voices. Civility — the ability to operate with respect, consideration, and decency — is critical. The consequences of breaking the rules of civil society is that disorder, brutality, and chaos reign. Michigan cannot afford such turmoil, especially as we must band together, united against the pandemic’s resurgence. This country was built on civility, and the ability to operate with decency, consideration and respect for one another. We cannot afford to lose touch with those values. And despite the deep divisions in our country, we must remember that at the end of the day, we are all Michiganders and Americans. It is time for all of us to lock arms and stand firmly against the pandemic — instead of against each other — and we must do it now. The future of our state is counting on us all.
`Suzanne Shank, president and CEO, Siebert Williams Shank & Co. LLC `Barb Tronstein, chief operating officer, Gardner White Furniture `Rachel Tronstein, president, Gardner White Furniture ` Carla Walker-Miller, founder and CEO, Walker-Miller Energy Services
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Unite against the pandemic — and not against each other
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.
NONPROFITS
Forgotten Harvest to shift to new model with larger $12M HQ BY SHERRI WELCH
Forgotten Harvest has begun construction of a new site that will shift its operating model to provide a more nutritional mix of food for the region’s hungry. The nonprofit food rescue, which picks up food from restaurants, convention halls and grocery stores that would otherwise go to waste and delivers it to food pantries and food pickup sites, has launched work on a new, 77,000-square-foot headquarters not far from its current home in Oak Park. Located on Eight Mile Road between Coolidge Highway and Greenfield Road, on the site of the long-demolished Lightguard Armory, the new $12 million building will give Forgotten Harvest the space it needs to consolidate its staff from three Mayes locations and to shift from just-in-time distribution of much of the food it rescues to bringing all of it back to its warehouse to be mixed before sending it back out in more balanced fashion. Forgotten Harvest purchased the 10-acre property from Livonia-based Schostak Bros. & Co earlier this year for $1.2 million, CEO Kirk Mayes said. After delays due to the pandemic, ground clearing on the site began earlier this month. Construction is expected to be completed by spring/ summer 2022. Forgotten Harvest launched the quiet phase of a now $17 million campaign in 2018 to fund capital costs, furnishings and equipment and $1 million fund to help cover facility operation and maintenance costs for the first several years, Mayes said. So far, it’s raised $9.5 million. “The outcome of this project is not just a building,” Mayes said. “The outcome is a smarter Forgotten Harvest that’s making decisions based off of information we’re getting from our community and processing that into a way we can figure out better ways we can serve the community. “With help of experts to help us think through this, what we discovered is in order to maximize this opportunity, we need a larger space.” The nonprofit’s current site on Greenfield Road just south of Nine Mile, purchased late in 2006, is too small to meet social distancing needs for volunteers and to repack and store food, Mayes said. It doesn’t have adequate storage, and with just two loading docks, it can’t accommodate inbound and outbound truck deliveries and pickups. “We have had to turn away donations; sometimes we just don’t have the space,” Mayes said. During the early months of the pandemic, Forgotten Harvest temporarily moved into a 100,000-square-foot Royal Oak facility loaned by the owners of Oak Park-based 1-800-Self-Storage.com. It signed a two-year lease for the space over the summer, Mayes said. The site temporarily gives it needed space to accommodate distribution of 1.2 million-1.5 million pounds of food each week (most of it government-funded), up from about 600,000 pounds of food per week before the pandemic. With the new site, it will be able to
bring its 80 full-time employees, parttime staff and volunteers from the Oak Park and Royal Oak sites and a third administrative site in Southfield together. It will also give needed space as it shifts its business model to provide a better mix of food. With the shift, it will bring rescued food back to its facility, sorting and repackaging it with other food rather than moving bulk loads of one type of food or another directly to its partner agencies, Mayes said. The new building will include warehouse, cold storage and administrative space, 15 loading docks and a truck yard. Farmington-based GAV & Associ-
ates Inc. is the architect on the project, and G and D Investments is the general contractor. Forgotten Harvest has secured a line of credit with Huntington Bank that will allow it to finance the construction of the project, while it continues to fundraise, Mayes said. The goal is to pay off the credit free and clear when the campaign is completed, he said. Forgotten Harvest is operating on an $11.4 million cash budget for fiscal 2021. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch
Forgotten Harvest has launched work on its new, 77,000-square-foot headquarters not far from its current home in Oak Park. | FORGOTTEN HARVEST
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NOVEMBER 23, 2020 | CRAIN’S DETROIT BUSINESS | 7
TAKING TIME OFF Employers offer flexibility as employees deal with demands of COVID-19
WORKFORCE TRENDS
PAGE 9
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HOPE THIS FINDS YOU WELL
How companies are adapting employee health, wellness strategies for COVID-19 and beyond BY ALLISON TORRES BURTKA | SPECIAL TO CRAIN’S DETROIT BUSINESS
Since employers first began figuring out how to respond to COVID-19 in the spring, employees’ health and safety have been paramount. Every organization has made bespoke decisions on shutdowns, remote work, health screenings and plans in case anyone tests positive for COVID. “There is no script on how to react to a pandemic,” said Jodi Ruffini, director of global total rewards and safety at Carhartt. Like many employers, Carhartt has been aligning its policies closely with guidelines from the Centers for Disease Control and Prevention, Department of Health and Human Services and Occupational Safety and Health Administration to keep employees safe and healthy. As work has evolved and the pandemic has persisted in the last several months, many employers have found ways to help their employees maintain their health and well-being, beyond COVID tests and cleaning procedures. “Our associates’ health and safety have been a top priority throughout this pandemic, and we’ve made sure our associates have the appropriate resources and support to cope with stresses brought on by the pandemic,” Ruffini said.
8 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
This support has included adjusting how the work itself gets done, revising or creating policies for remote work and flexible schedules, offering more options for time off, expanding access to telehealth, providing support for mental health and promoting overall well-being. “Employees need us to be as flexible as possible in the most uncertain time that we’ve dealt with in our lifetime,” said Dandridge Floyd, assistant superintendent of human resources at Oakland Schools. “There can be a lot of different things that come up, but they all come down to: How can we be flexible to meet the needs of our employees?”
Remote possibilities Some companies moved immediately to remote work. “Because of the kind of work we do, it was easier for Altarum than a lot of other employers to transition to remote work with virtually 100 percent of our employees,” said Altarum Chief Human Resources Officer Lesa Litteral. “I think a lot of employers were concerned about productivity with remote work, but we have been able to
ance for home furniture to better equip your personal work space as an effective home office,” McLellan said.
Flexible schedules Floyd
Litteral
maintain a high level of productivity throughout the pandemic.” Scott McLellan, principal at Plante Moran Group Benefit Advisors, agreed. “Employers have been forced to allow their employees to work from home, and as we’ve adapted, I think a lot of the feedback I’ve heard from clients is that they’ve been pleasantly surprised at their employees’ ability to work effectively from home,” he said. And he expects that employers’ flexibility on remote work might continue beyond COVID. Along with meeting people’s logistical needs, employers can help maintain remote workers’ health and well-being — and reduce their stress — through some small measures, such as “providing an allow-
Many employers have expanded or adopted alternative work scheduling for the first time in response to COVID, McLellan said. They’re less concerned about whether people are at their desk from 8 to 5 and “more concerned about getting the job done.” Altarum expanded its flexible part-time work options, so that employees can work at a reduced schedule, and they can also change their schedule from month to month if they need to. Some of this flexibility was already available, but when COVID hit, Altarum made sure employees understood their options, Litteral said. “We have been encouraging managers, particularly at this time, to be as flexible as possible,” and to be open-minded about working through issues that come up, she said. See WELLNESS on Page 9
FOCUS | WORKFORCE TRENDS
WELLNESS
From Page 8
Altarum already had a kid-friendly culture, Litteral said. “When a team member’s child comes in during a conference call, sitting on somebody’s lap or waving ‘hi’ to us during our team meeting, nobody blinks an eye. It’s just part of our culture.” So extending that flexibility to new family responsibilities because of COVID was not difficult, she said.
Expanding health benefits “Employers are doing everything they can to continue to maintain the high-quality health care benefit plans for their employees,” McLellan said, and some employers have found ways to keep employees on their plans even when they don’t meet the eligibility requirements because of COVID-related furloughs, layoffs or changed schedules. “Most insurance carriers demonstrated a willingness to accommodate the desire of these employers, by allowing the employees that would not otherwise meet eligibility requirements to remain on the plan(s), as long as the employer continued to pay premiums,” he added. Before COVID, typical benefit plans did not cover telehealth visits to the doctor, but now many do, and many employers have made telemedicine a covered benefit, McLellan said. Altarum had offered some telehealth benefits before but has expanded them to include behavioral health and dermatology. Employees have been using them, so the company is making them a permanent part of its medical plan, Litteral said. “Plante Moran believes that the focus on mental health benefits has increased, driven by COVID, because of stressors like potential loss of healthcare, income, job security and personal health,” McLellan said. “As a result, there appears to be renewed and heightened interest in EAPs (employee assistance plans).” Some employers have put new EAP services in place, and others have expanded existing ones. “We know mental health issues are on this rise across the country,” Ruffini said. “Stresses are surrounding us all, and the company has been promoting our employee assistance program and educating associates on our mental health benefits.”
Prioritizing wellness Before the pandemic, wellness might have been a lower priority to some people, but that has shifted, Litteral said. Now, people are recognizing “how important wellness is, and taking care of ourselves emotionally and physically as we go through this pandemic,” she said. Altarum has offered some online wellness programming, including boot camp exercise and yoga classes. “We have a virtual yogi come in to coach employees in mindfulness, breathing and other techniques to help reduce anxiety,” Litteral said. These classes have been popular with employees. Before the pandemic, Oakland Schools’ well-being activities were mostly group-oriented. So it had to restructure them, such as converting a team walking challenge into a virtual challenge, and encouraging participation through offering prizes. And it worked, Floyd said. “It’s been really refreshing to see, because we can watch it on our leaderboard, how individuals
are coming together, even though they could be miles and miles apart,” she said. O a k l a n d Schools also found ways to make activities communal, even McLellan though they’re remote — such as by saying, “At 10 o’clock every day, we’re taking a break, and we’re going to do X activity, and post it and show it,” Floyd explained. Carhartt’s total well-being approach includes five wellness pillars: physical, financial, social/emotional, career and community. In COVID’s early stages, the company began “Wellness Wednesdays” — a weekly email that provides guidance and resources on topics such as how to travel safely and financial well-being during the holidays, Ruffini said.
Other forms of support “We all know that the pandemic is impacting us all financially, in some way, shape, or form,” Ruffini said. So Carhartt implemented an income advance program, which allows associates to apply for a loan up to $2,000 without having to go through a credit check. “It’s a no-questions-asked type of program and paid back through payroll deductions,” she said. Carhartt pays for associates’ membership to care.com to help them find care for children, parents and even pets, as well as housekeeping services. Carhartt also provides two hours of tutoring services per month, through tutor.com. Ruffini added, “Next year, we are introducing life planning accounts, which would allow associates to choose from offerings, such as pet insurance, identity theft protection, mental health apps and emergency savings accounts.” Many employers have also found ways to keep employees’ health care costs down, such as avoiding health care premium increases. “This year, I think there were a lot of employers that really bent over backwards to try to keep things as status quo as possible,” McLellan said. Some companies have been working with Plante Moran to reduce costs through alternative benefit strategies, such as third-generation telemedicine, which provides more expansive care and more advanced technology, for example text-based primary care, McLellan said. Other alternatives have included specialized vendors that can import prescription drugs at lower costs and that bundle care (such as bundling together the typically separate charges for a hospital room, a physician’s services, an anesthesiologist’s services, and other components of a hospital visit). Companies began exploring these strategies independent of COVID, but they may be a higher priority now as a way to keep their and their employees’ costs manageable, McLellan said.
Lines of communication “The most important thing we can continue doing is listen to our employees,” Litteral said. Altarum has surveyed employees about their well-being and heard that “people kind of miss being around their colleagues, they are feeling the strain from caregiving responsibilities while also working from home — there’s a desire to return to
normal,” she said. The company has since talked about some of these issues in biweekly all-hands meetings “and asked about ways that we can better respond.” Floyd agreed that listening to employees is key. “Most of the programs that we did institute were employee driven,” after gathering data from surveys and focus groups, she said. Oakland Schools has helped local school districts communicate COVID information to parents and other community members. This has involved “getting the data out in a readily accessible format so the community understands, and they know how decisions are made,” Floyd said. Oakland Schools also launched an education campaign for employees to help them better understand the nuances of COVID as it related to the workplace, using short videos and graphics to highlight common questions and concerns about COVID and how Oakland Schools was keeping employees safe. Altarum established a COVID-19 committee for employees to provide feedback. “Through listening to what their needs and preferences are, and having honest and open dialogue about what is feasible and practical as a business, working together really helped us craft a very successful response to the pandemic,” Litteral said. Organizations can help their employees deal with COVID even in small ways, such as helping people connect by making time for intentional non-business-related conversations, like a 15-minute coffee chat before work, Litteral said. Helping maintain employees’ health and well-being can fortify the employer as well. “We are our people,” Floyd said. “And we know that if our people don’t do well, we don’t do well.”
Taking extra time off for COVID-19 Employers offer flexibility for absences Employers have become more flexible with employees taking time off, including leaves of absence. “We really have tried to be as flexible as possible, because people have to be able to manage all the personal challenges that they have right now,” said Lesa Litteral, chief human resources officer at Altarum. In response to COVID, Altarum began letting employees “go negative” with their PTO — they can borrow up to 80 hours from their future PTO. “That’s been very helpful to allow employees to have that extra time in case they needed it because of the challenges of caregiving during COVID,” Litteral said. Although many companies have not made formal changes to their leave, PTO and vacation policies, they have been more flexible about applying their rules, said Scott McLellan, principal at Plante Moran Group Benefit Advisors. For example, an organization might give employees the same number of days off but allow them to take the time in one-hour increments, rather than the eight-hour increments they once required. This gives staff “flexibility to deal with personal and family needs,” he said. McLellan added that the Families First Coronavirus Response
“WE REALLY HAVE TRIED TO BE AS FLEXIBLE AS POSSIBLE, BECAUSE PEOPLE HAVE TO BE ABLE TO MANAGE ALL THE PERSONAL CHALLENGES THAT THEY HAVE RIGHT NOW.” — Lesa Litteral, chief human resources officer, Altarum
Act (FFCRA) required certain employers to provide employees with paid sick leave if the employee was quarantined due to COVID or needed to care for someone who was quarantined due to COVID. “So many employers didn’t need to change their leave policies, as they were subject to the FFCRA,” he said. Altarum provides leave under FFCRA but also lets employees take that leave in two-hour increments. “It allows people, in particular those that have to balance these multigenerational caregiving duties, to do that in a way that’s flexible,” Litteral said. This has also been helpful for parents who have children doing two-hour blocks of online learning at home, she said.
GET A HEALTHIER OUTLOOK ON CHILDHOOD Tune in to WJR 760 AM for Caring for Kids, a monthly radio program highlighting issues and efforts locally, regionally and nationally, that impact the health and wellness of children.
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yourchildrensfoundation.org/caring-for-kids NOVEMBER 23, 2020 | CRAIN’S DETROIT BUSINESS | 9
HEALTH CARE
Top Beaumont cardiologist pushes for management’s ouster Dr. Robert Safian, 7 others ask board to fire CEO; donors submit letter asking for change BY JAY GREENE
The senior cardiologist at eight-hospital Beaumont Health has joined hundreds of other top doctors, nurses, donors and community leaders in calling for the ouster of CEO John Fox, COO Carolyn Wilson and Chief Medical Officer Dr. David Wood. In a letter last week to the Beaumont board and its Chairman John Lewis, Dr. Robert Safian, who has practiced medicine for more than 40 years, including 29 years at Beaumont, told board members that “leadership has crossed the line of fiduciary irresponsibility.” Safian, who along with an eight-member group of leading employed and private specialists at Beaumont have met with board members previously to present their case, said Fox has “created a culture of fear and intimidation.” He said many Beaumont workers, including physicians, “have been forced out after disagreeing with corporate decisions. This toxic culture has been progressively worsening over the last few years.” Safian was a leader among Beaumont’s doctors in the debate over the merger deal with Advocate Aurora Health, joining other doctors to meet with top management and the board to discuss their concerns about the planned deal, which was called off last month. Over the past year, a growing number of Beaumont doctors, nurses, donors, employees and trustees have spoken out against corporate decisions as Beaumont managers have sought to cut costs, outsource physician and nursing services, sell nursing homes and an ambulance company, and propose mergers with out-of-state health systems. The proposed merger between Beaumont and Advocate Aurora, a 28-hospital health system based in Illinois and Wisconsin, was the final straw for many of Beaumont’s supporters. The two health systems announced in mid-August that further merger talks would be postponed until the COVID-19 pandemic is over. On Oct. 2, the system boards said they had mutually terminated the merger but left the door open next year to reassess the situation. Some doctors and donors still fear Fox and Lewis plan to resurrect negotiations with Advocate next year to complete the merger. This is a primary reason, they say, Fox and the current management team need to be terminated and a new management team installed. In a Nov. 16 statement to donors and trustees, which Beaumont spokesman Mark Geary said Fox wrote, he discussed relationships with donors, trustees and physicians. Fox also reiterated that the merger with Advocate Aurora has been called off. Over the summer, several physician groups and nurses presented the board with petitions expressing overwhelming “no confidence” in Beaumont’s management team. In September, a 25-family donor group first asked the board to address concerns by providers. Safian and the doctor group he
Beaumont Health is facing calls for changes to its management team | BEAUMONT HEALTH
Excerpt from Safian’s letter From the text of the letter sent by Dr. Robert Safian to the board of directors of Beaumont Health last week. (Read the full letter at crainsdetroit.com)
Safian
Fox
represents said in the letter to the board that there are multiple reasons why top management should go. At the top is Beaumont cost-cutting, which he said has been done primarily in an effort to keep profit margins above 4 percent in order for top executives to receive additional financial bonuses at the end of the year. In the Beaumont statement, Fox said “the only reason we need a reasonable margin is so that we can fund our capital and clinical programs to make them technologically current with up to date medical equipment.” He said Beaumont’s 4.17 percent margin compares with Spectrum Health’s 4.57 percent and Trinity Health Michigan’s 4.71 percent. Safian’s letter also decried the outsourcing of anesthesiology physician and nursing services “to the lowest bidder” and “mandating use of equipment against the will of physicians.” Beaumont has contracted with Texas-based NorthStar Anesthesia to serve seven of its eight hospitals. Nearly half of Beaumont’s anesthesiologists refused to sign contracts; and facing a deadline where Beaumont’s certified registered nurse anesthetists were told they would lose $30,000 signing bonuses, 90 percent of Beaumont’s CRNAs at its three northern hospitals signed contracts. Fox said it is false Beaumont is bringing in lower-quality anesthesiologists and CRNAs to replace those who decline to contract with NorthStar. “Our percentage of fellowship trained anesthesiologists will actually be greater going forward than it has ever been in the past. Areas of fellowship subspecialty training that are important for us to maintain and frankly grow include cardiac, pediatrics and critical care.” Safian said those decisions have
10 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
Beaumont Hospital: Setting the Record Straight from a Doctor’s Perspective Yes, I am one of those: I am a Beaumont doctor. And I am asking your indulgence to read what I have to write. I came to Beaumont in 1991; well, actually I was recruited from Harvard to join the Cardiology faculty by Bill O’Neill, a visionary leader who was the architect of one of the greatest cardiovascular programs in the world. Our system has dozens of great leaders like Bill. Bill left Beaumont many years ago to become the dean of the medical school at the University of Miami, but like all great leaders, he left a legacy of accomplishment that was perpetuated by others who remained at Beaumont, and carried on our traditions of excellence in patient care, clinical research, and education. Together with many others, I am one of those who remained, and I’ve had many roles over the last 30 years, including training about 70 percent of the cardiologists who practice at Royal Oak. These former fellows are now my friends, confidants, colleagues, and partners, and together we are the doctors who take care of you, your parents, your children, and your grandchildren. As your doctors, we feel an enormous responsibility to advocate for you, but what does that mean? It means that we will do everything in our power to ensure that you have the best medical care that we can provide, and if we cannot provide it because it is outside our specialty, then we will find it for you. Thankfully, Beaumont has a very broad reach, and whether your problem requires expertise in orthopedic surgery, oncology, urology, pediatrics, ophthalmology, or whatever … there are trusted, expert Beaumont doctors who are here to serve you. So, if the things I’ve written are true, why are we hearing about so much turmoil at Beaumont? Why are community leaders demanding removal of the corporate leadership team? Please read on… For the last five to seven years corporate leadership has created a culture of fear and intimidation, and many Beaumont workers, including physicians, have been “forced out” after disagreeing with corporate decisions.
resulted in more than 100 physicians and nurses leaving or taking their business to competing hospitals. “In the coming days, you will learn a lot more … about our doctors, about our corporate leaders, about the board, and about yourselves. The action-item is clear: corporate leadership must go. All of them. We need your help.” While Fox’s statement didn’t respond directly to Safian’s letter to the board, he said Beaumont highly values physicians. “Some have postured that Beaumont believes physicians are easily replaced and somehow not valued,” Fox said. “That is absolutely false and frankly makes no sense. Experienced clinicians are extremely valuable and are very difficult to replace for some very obvious reasons.”
Fox said Beaumont is fortunate to have many experienced physicians in many departments. “To the extent that we have ‘lost’ valuable physicians, as indicated in the press, there were unique circumstances associated with each one of those physicians,” Fox said. “There has been no large scale ‘exodus’ of physicians as intimated in some media stories.”
Recent developments About two weeks ago, a group of major donors, including at least 30 families who have given to all eight of Beaumont’s hospitals, sent a second letter to the Beaumont board asking it immediately fire Fox and other top leaders and start a process to appoint a new management team.
The donors also threatened to withhold future charitable donations if the board chooses to continue to support Fox. Two donors told Crain’s last week they cannot stand by and see Beaumont’s reputation tarnished and potential quality reduced as top doctors and nurses leave for competing hospitals because of cost-cutting. “We appreciate the support our donors provide and we do value them,” Fox said in a statement. “Net philanthropy funds between 5 percent to 6 percent on average of our capital budget for the last three years. Our capital budget has averaged $260 million a year for the last three years.” On Nov. 15, Safian penned an email with a headline “Beaumont in Crisis” to 119 Beaumont trustees, doctors, donors, community leaders and other supporters, asking them to write letters to the Beaumont board and Lewis. Safian suggested to the trustees that their letters could include concerns that doctors and nurses have lost confidence in corporate leaders and that for the benefit of the community the board should immediately replace Fox and other top corporate leaders with new leaders. He said to make sure trustees write directly to each board member. “I’ve been led to believe by board members who are sympathetic to our patients and medical staff, that letters sent to John Lewis directly are generally not shared with other members of the board, but are routinely shared with John Fox, to develop a strategy to defeat the issues that are raised,” Safian wrote. Beaumont said in a statement that Lewis shares all letters he receives with the entire board of directors. Another point Safian made is that Beaumont recently filed its 2019 IRS Form 990, which details the financial year for nonprofits like Beaumont and also provides compensation and bonuses paid out to Fox, Wilson, Wood and other corporate leaders. In 2019, Fox earned total compensation of $6.75 million, including base salary of $1.89 million and bonus payments of $2.6 million. Wood earned $1.53 million, including $727,137 in base salary and $411,478 in bonus payments, according to the Form 990 for Beaumont Health. Wilson, who was listed on the William Beaumont Hospital Form 990, $2.03 million, including base of $996,642 and bonus of $554,666. In each of the 2017 and 2018 years, Fox was paid a total of nearly $6 million in compensation. Wilson received about $2 million in total compensation. Last week, Fox sent an email to the system’s 38,000 employees informing them they’d receive a special $1,000 cash bonus and other benefits in recognition of their work and dedication. Several nurses and doctors told Crain’s they were outraged by the token offering. They say management receives much higher bonuses and has understaffed them as COVID-19 is spiking again and they are overwhelmed with patients. Contact: jgreene@crain.com; (313) 446-0325; @jaybgreene
WOMEN IN LEADERSHIP
‘CREATE YOUR OWN GAME’ Tanya Saldivar-Ali on building success in male-dominated fields BY RACHELLE DAMICO | SPECIAL TO CRAIN'S DETROIT BUSINESS
When Tanya Saldivar-Ali’s husband was getting ready to be deployed to Afghanistan in 2009 for active military duty, she committed herself to growing their business. “I had to go back to school and figure things out,” Saldivar-Ali said. “What would I do if anything had ever happened to him? I had three small children.” Saldivar-Ali and her husband, Luis Ali, started purchasing real estate in Southwest Detroit in 2005 and founded AGI Investments (now AGI Construction) in 2008. When the recession hit in 2009, the couple shifted their business model into property services, and then into residential and commercial construction. “Challenges can become opportunities,” Saldivar-Ali said. “Being resilient and adaptable has prepared us to be able to sustain ourselves.” Today, the Detroit-based company is a full-service general contracting project management company that provides design-build, interior remodeling, retrofitting and building services to community development projects. AGI has four full-time employees and hires about 20 subcontractors annually. Last year, the company generated just under $1 million in revenue. As AGI’s Business Development Manager, Saldivar-Ali manages all client relationships and contracts, and creates strategies and opportunities for growth. Both Saldivar-Ali and Luis Ali grew up in Southwest Detroit. The company, which is service-disabled veteran-, Native American- and minority-owned, focuses on advancing the community with sustainable building and equitable neighborhood engagement. By the end of this year, AGI plans to launch its own community development project, AGI Design Build Green Hub. The hub is housed in a converted historic home in Southwest Detroit and plans to be an incubator space that will focus on strengthening Detroit’s design-build ecosystem by mentoring Detroit contractors, hosting community design-build workshops and engaging and educating public stakeholders. “In order to build sustainable cities that are inclusive for everybody, it is so important to have private, public, and local stakeholders, all working towards a goal,” SaldivarAli said. “If we can align for the greater good of building a stronger city that’s inclusive, that’s key.” `How did growing up in Southwest Detroit influence your career? When I grew up in the ‘90s, it was a really, really bad time in the neighborhoods, especially Southwest Detroit. At the time, we had a lot of violence and gangs. There weren’t a lot of pathways to college or higher career goals. I’m a first-generation American in my family. Both my parents are immigrants; my dad, Manuel, is from Mexico and my mom, Giovanna, is from
Italy. My mom was a business owner for 42 years. She owned one of the only female-owned bars, Giovanna’s Lounge, in Detroit’s Mexicantown. I started helping with inventory and accounting as a young teenager and later managed the restaurant in the evenings. I wasn’t even thinking about wanting to be an entrepreneur at that time. It just happened organically. Angela Reyes, executive director and founder of the Detroit Hispanic Development Corporation, started a program for at-risk young adults. It was a workforce program that partnered with the Hispanic Manufacturing Center. I joined the program and went on to do very well in manufacturing. I worked for Carmen Muñoz (late founder of Muñoz Machine Products, a Detroitbased automotive supplier that was acquired by Livonia-based RamaTech L.L.C in 1998). I did that for a while, but my heart had always been here in the neighborhood and in Detroit. I talked to Angela and ended up working for the program by soliciting opportunities for program participants, and later managed corporate relationships to bring funds into the program. That’s what I did until I left, got married and had kids. Then, my husband served in the military, and we traveled for a little bit. When he did his first active duty in Afghanistan in 2009, I realized I had to do something. `What did you do next? I started working towards a program through Madonna that was specifically for women called SWEEP (Southwest Detroit Women’s Educational Empowerment Project). When the program finished, I had most of my undergraduate work done for my associate’s degree, and I had an opportunity to transfer to the University of Michigan-Dearborn. They told me most of my credits would transfer to urban planning. I had no clue what urban planning was. Once I started the program, I absolutely fell in love. I didn’t realize the whole impact of planning out cities and the way cities are developed until after I started expanding my schooling and aligning it with my career. Developers are taking advantage of real estate opportunities, tax credits and making critical decisions that impact the everyday lives of longtime Detroit residents. It is crucial to understand how these developments have a long-term impact on the designbuild ecosystem.
Tanya Saldivar-Ali
The Saldivar-Ali File Education: Associate degree in urban and regional studies from the University of Michigan-Dearborn’s College of Arts, Sciences, and Letters. Community leadership certificate from Madonna University in Livonia and a building high-performance business certificate from The Tuck School of Business at Dartmouth in New Hampshire. Career Ladder: After graduating from Western International High School in Detroit, Tanya Saldivar-Ali provided personal administrative support for Carmen Muñoz, the late founder of Muñoz Machine Products, a Detroit-based automotive supplier that was acquired by Livonia-based RamaTech LLC in 1998. She left Muñoz Machine Products in 1995 and worked within the automotive corporate sector for a few years until she joined the Detroit Hispanic Development Corp., a Detroit-based nonprofit that focuses on creating opportunities for youth and their families. Saldivar-Ali started working for the nonprofit in 1997, where she started as the job development coordina-
` Why did you start a construction company? My husband is an electrician by trade. When he got out of the military, he went through a military apprenticeship program, but he just couldn't get hired. He waited for a long time to find union work and never got called either. He started working for a nonunion company in 2007, but they started laying people off, including him. We always talked about starting a business. We started buying investment properties in 2005, because I understood clearly that real estate was tied into longterm wealth. We purchased our first investment property in Detroit, which
tor for a program that placed at-risk young adults into workforce roles. In 1998, Saldivar-Ali became the nonprofit’s fund development director, where her responsibilities included managing corporate relationships and bringing funds into Detroit Hispanic Development Corp. programs. She left the nonprofit in 2005 to focus on raising her children and investing in Detroit properties. In 2008, Saldivar-Ali co-founded AGI Construction with her husband, Luis Ali. Current role: Co-founder and Business Development Manager, AGI Construction. A mentor: Tola Wood, a retired minority contractor with more than 40 years of experience in Detroit’s construction industry. “He has mentored and taught me the ins and outs of the construction industry,” Saldivar-Ali said. “He always encourages me to expand my capabilities — regardless of being a female in a male-dominated field — to pursue bigger opportunities that still lie ahead.”
“CHALLENGES CAN BECOME OPPORTUNITIES. BEING RESILIENT AND ADAPTABLE HAS PREPARED US TO BE ABLE TO SUSTAIN OURSELVES.” — Tanya Saldivar-Ali
was a blighted two-family flat. I was seven months pregnant laying tiles on the floor. Ironically, we brought in a crew of drywallers and they wanted to purchase the house before we were finished. They couldn’t afford
to buy the house flat-out and we owned the house cash. So, we did a land contract. The business grew from there. When the economy fell out, we started maintaining properties for foreclosures that banks and other investors owned. We got our builders license and started to do residential (construction) and later started prioritizing commercial work. Everything started unfolding from there. I absolutely fell in love with understanding construction through the lens of urban planning and placemaking. That’s where the business crossed between two visions. See CREATING on Page 12
NOVEMBER 23, 2020 | CRAIN’S DETROIT BUSINESS | 11
CREATING
From Page 11
My husband had a construction background and I had a passion for community development and urban planning. Detroit Development Fund (a provider of loans and technical assistance) has been a major partner for us in our growth and has backed some of our larger projects. We sublease space out of the Detroit Hispanic Development Corporation and we still have a very close relationship with them. ` What was your first large project that helped get the company off the ground? Our first large project was in 2016. We did a lower-level renovation for a cafe and community space at Cristo Rey High School in Detroit. The project was over a half a million dollars. It was a direct opportunity from one of our mentors, Ideal Contracting, (a Detroitbased general contractor) who’s the largest minority contractor in the city. We completed everything from demolition, to (finding and hiring) trades, to waterproofing, to finding kitchen equipment, to mechanical, electrical and plumbing. It was crazy. That project was the first time we understood how important it was for us to pivot our business model. We were able to bring in our own crew, which meant we had the freedom to give other people (job) opportunities. We are most proud of using over 90 percent of Detroit-based contractors. That project shifted our mission and vision. We understood that construction was about the impact that the building or project has on the people. Prior to that project, those kids were eating lunch in their gym and didn’t have a cafeteria. No kid should have to go without a lunch room. We’re no longer just chasing the big project. We’re interested in working for a big construction firm for downtown (and) Midtown projects, but we’re also working with schools, churches, nonprofits and small business owners that have more of a rippling effect in terms of the people in the neighborhoods of Detroit. ` What was an early challenge for you? Being a female within the whole construction industry. Construction is predominantly a white, male-dominated
AGI plans to launch its own community development project, AGI Design Build Green Hub.
industry. In the past, Luis and I have been in meetings and we’ve had people just completely speak to him and kind of ignore me being in the room. Luis will shift their attention and say, ‘Well, that would be Tanya’s (responsibility), you need to talk to her.’ Having his support in terms of where (my roles lie) has been key. So has finding the confidence to be assertive in my position. ` Which project are you most proud of? One of the projects I’m most proud of is First Latin American Baptist Church (formerly in Detroit’s Delray neighborhood), an 80-year congregation that has been rooted in the community for three generations. The church was demolished (in 2018) for the Gordie Howe International Bridge (to Canada). We helped the church negotiate with the Michigan Department of Transportation for (project) estimates and helped them relocate to their new location (in Mexicantown). We’re in the middle of a $600,000 expansion that includes expanding their current building and project managing the erection of a prefabricated building to help make them whole from what they lost. ` You recently experienced a racist incident at that job site. What happened?
We had some out-of-state directors come in from Texas that specialize in the design of the prefabricated steel building. They were on-site working, and then left for lunch. When Luis and the field supervisor came back, they realized somebody stole the key from the forklift and dumped a bucket of water on the equipment almost as if to intentionally damage it. They busted out a window in a truck. They left a nasty note saying, ‘Rats, you’re not welcome here. Back to Texas for you amigo.’ My initial thought was that this is extremely discriminatory. There’s a predominantly Hispanic crew on-site right now. I also realized that it was an attack, because we’re a nonunion company. It was definitely a two-way message. It’s my understanding that rats is a derogatory term towards people that are nonunion. Obviously, somebody was extremely upset about that and didn’t feel we should be doing that project without union representation. It’s upsetting because it’s a church in the center of a Hispanic community. It’s not this competitive, downtown project where public money is being used. This a church that’s using private funds. It’s just mind blowing. Meanwhile, people are just trying to put food on their table and the church is trying to make themselves whole from being displaced. ` What’s your take-away from that
| AGI
experience? It’s important to say that Detroit contractors and residents deserve a seat at the table. It’s also important for Detroiters to understand their worth in this process of the new revitalization. We need to include all local stakeholders in the process when it comes to development, and how that development impacts their daily lives. It’s extremely frustrating, and most contractors give up in the process. There’s literally too much work and not enough laborers. There’s definitely work for everybody. Change is here, whether you like it or not, and we have to adapt so that we don’t get left behind. But how do we find ways to be included in the process? ` How has COVID-19 affected your business? It’s been challenging. Things are definitely taking longer to get done. We can’t schedule trades on top of each other anymore for safety reasons in order to keep workers from different companies apart. Our materials are starting to be impacted by the logistics and the shortage of millwork. Lead times are longer to get materials. At the First Latin American Baptist Church, we had to put in an HVAC mechanical system order in over 30 days ago and it may be two months before we actually have the equipment. We’re also doing a project
at the Michigan Welcome Center, where we’re building a cafe, gallery space and bathroom addition. We had to swap out all the wood doors we planned on ordering for hollow metal doors, because nobody could get them. (It’s a challenge) even working through (the city of Detroit) to get permits with a department that’s partially closed. Being transparent and having good communication and relationships with our clients, suppliers and the city has been key. Relationships are your future currency. ` Do you have any advice for women who are hoping to break into the construction industry? Women are natural builders and project managers. Women have been building communities for centuries. Oftentimes, we’re not talking to young people about how to be project managers, business owners, engineers, inspectors, or architects. It’s such a broad field in terms of all the things that impact urban planners. Why aren’t young people talking and thinking about who’s designing their city? You don't realize that you’re impacted. There’s plenty of opportunities for women to be part of the whole design-build system. If the “good ol’ boys” don’t want to let you play, then create your own game.
REAL ESTATE
Signature Associates, UHY to take space in Paradise Valley building BY KIRK PINHO
Signature Associates Inc. and UHY Detroit are taking the top floor in a vacant downtown Detroit office building. The commercial real estate firm and the accounting company are collectively leasing 7,500 square feet and moving people from their existing downtown locations into the Firm Real Estate-owned building at 230 E. Grand River Ave., the companies announced last week. Steve Gordon, founder of Southfield-based Signature Associates, said last week that the company’s employees in the 333 W. Fort St. building downtown will move in the next few months to the top floor of 230 E. Grand River Ave. The UHY Detroit office is in the Dan Gilbert-owned Chrysler House highrise. “We enjoy a long-term relationship with UHY,” Gordon told
Signature Associates Inc. and UHY Detroit are jointly leasing the top floor of this Detroit office building at 230 E. Grand River Ave. | SIGNATURE ASSOCIATES INC.AND UHY DETROIT
12 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
Crain’s. “They are our accountant, we do business with them, we represent a lot of their clients and we thought it was time to formalize our relationship.” That will involve the two companies referring clients to each other. A news release says the Signature Associates/UHY partnership will “give all clients access to a complete range of real estate advisory services, including tax reviews and appeals, leasing and renewal advice, and sale transaction consulting.” Neither Gordon nor Bill Kingsley, office managing partner for UHY, would say how much is being spent on the office build-out. Novi-based DeMaria Construction is the contractor on the project. “We welcome UHY to the Paradise Valley neighborhood and look forward to working with them to expand their business opportunities and commitment to diversity,” Be-
atty, who is also a board member of the Paradise Valley Conservancy, said in the release. “UHY recognizes this is a very special area of the city and taking part in celebrating it and helping restore its glory.” Firm Real Estate, founded by Sanford Nelson and other investors, bought the building for $13.248 million in September 2018. The other investors include Don Foss, the billionaire founder of Credit Acceptance Corp., considered the first company to offer subprime auto loans; Marvin Beatty, a Detroit developer who is also chief community officer for Greektown Casino-Hotel; and Larry Mongo, the owner of Cafe d’Mongo’s Speakeasy on Griswold Street downtown. Firm Real Estate primarily focuses its investments in the Eastern Market area. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
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SMALL BUSINESS RESILIENCE STORIES BEST PRACTICES FROM PIVOT TO E-COMMERCE When their brick-and-mortar shops closed during the pandemic, many of Michigan’s small business owners boosted their online presence and looked at other strategies to keep connecting with customers and sustain sales. As we enter the holiday shopping season, hear best practices from shop owners who relied more than ever on e-commerce in 2020.
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PEOPLE
Alexis Wiley leaves role as Mayor Duggan’s chief of staff Plans to run mayor’s re-election campaign next year, start public relations business BY ANNALISE FRANK
Alexis Wiley, Detroit Mayor Mike Duggan’s chief of staff, is leaving her post to run his re-election campaign and start a public relations business. The Detroit resident and Los Angeles native has been with the city seven years. She said that since she’s become a new mother, she decided she wants work with more flexibility. Wiley, 37, has been on parental leave from her chief of staff job and is starting work now on Duggan’s bid for a third term. The election is Nov. 2, 2021. “The mayor will announce Alexis’ replacement in the near future,” city spokesman John Roach said in a message. Wiley said Duggan’s bid for a third
term next year will be “demanding,” but with a finite timeframe. Chief of staff is a 24/7 job, she said. She plans to start building the foundation of a new DeWiley troit-based public relations and community engagement business while she runs Duggan’s campaign. She expects clients would include nonprofits and companies. As for Duggan’s potential re-election, Wiley said parts of the campaign remain an unknown — like the competitor landscape. “I hope it’s going to be a campaign
based on the issues and an opportunity to talk about what’s been done in Detroit, but most importantly, what lies ahead,” she said. Wiley became Duggan’s press secretary in February 2014, shortly after he took office. She moved to chief of staff that May. Before that she had been a Fox 2 Detroit reporter and anchor, having graduated from Northwestern University’s journalism school. Under Duggan she helped launch Grow Detroit’s Young Talent, the city’s summer jobs program. Wiley also worked on establishing Riverside Park along the Detroit River near the Ambassador Bridge in southwest Detroit. She said her job generally was to guide key policies and priorities to the finish line and help facili-
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PEOPLE ON THE MOVE To place your listing, visit www.crainsdetroit.com/people-on-the-move or, for more information contact Debora Stein at 917.226.5470 / dstein@crain.com ACCOUNTING
FINANCE
LAW
UHY LLP
Chief Financial Credit Union
Hawkins Parnell & Young
UHY welcomes Vin Nguyen as its newest partner in the Great Lakes region. Nguyen has over 25 years of experience working with family-owned, venture capital, private equity and public companies. His experience includes; clients in manufacturing, real estate, health care, and life sciences. Previously working for BDO, he has extensive experience planning, executing and managing audits for both public and private companies in accordance with US GAAP, PCAOB standards and SEC regulations.
Cheryl Boodram has been named Executive Vice President of Sales & Chief Marketing Officer of Chief Financial Credit Union. Boodram began her career at Chief Financial as a part-time teller in 2010 and, before establishing the Marketing Department, re-developed and led the Indirect Lending Department to more than double portfolio revenue. Since creating the Marketing Team, Boodram has developed and advanced marketing strategies to achieve product adoption, profitability and budgetary objectives.
Detroit litigator Rick Braun has joined Hawkins Parnell & Young, a national defense litigation firm. Manufacturers of a wide range of products engage Rick for counsel, guidance, and advocacy in product liability, toxic tort, and asbestos litigation. He works closely with executives, general counsel, and other stakeholders to develop litigation strategy and manage litigation nationwide. As a registered lobbyist, Rick has also advocated for corporate clients at the Michigan Legislature.
ADVERTISING / MARKETING
INSURANCE AGENCY / BROKERAGE
SOFTWARE / SERVICES
TGI Direct
Kapnick Insurance Group
BeneSys, Inc.
TGI Direct, a communications and distribution company serving highly regulated industries, is pleased to welcome Harry Vijayakumar as Vice President of Technology. In this role, Harry will serve on TGI’s leadership team and will direct the company’s strategic technology plan. He will also lead development, security, architecture, and network strategies within the organization. Harry was previously the VP of Information Technology at Samaritas.
Kapnick Insurance Group congratulates Rubin Torrez, now one of only 400 individuals in the US with the designation of Certified Pharmacy Benefit Specialist (CPBS). At Kapnick, Torrez utilizes holistic data to determine which benefit programs are right for organizations. With this new expertise in prescription drug distribution, cost, and value, Torrez is well-prepared to communicate complex pharmacy benefit contracts and potentially find savings for employers as prescription costs escalate.
BeneSys, Inc. is pleased to announce that Jeff Spires joined the company as Chief Information Officer. Jeff brings a strong and varied background with significant experience in both IT infrastructure and software development. With 25 years of experience, Jeff specializes in overcoming complex business challenges ranging from customer relationships to risk management. With technology at the heart of the services we provide to clients, BeneSys is thrilled to have Jeff in this critical position.
14 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
“I HOPE IT’S GOING TO BE A CAMPAIGN BASED ON THE ISSUES AND AN OPPORTUNITY TO TALK ABOUT WHAT’S BEEN DONE IN DETROIT...” — Alexis Wiley
tate other executives’ initiatives. During her time in the mayor’s administration, Wiley was also a subject of a stinging Office of Inspector General report after a Detroit Free Press investigation into the city’s and Duggan’s controversial involvement with Wayne State University prenatal care
program Make Your Date. Wiley declined in an interview with Crain’s on Thursday to comment on the OIG report and its fallout, other than saying that her duties did not change after it. In the report, Inspector General Ellen Ha found that Wiley ordered employees to delete emails related their fundraising work for Make Your Date, calling that deletion “abuse of authority.” Duggan, Wiley and other officials disputed the OIG’s findings. The Free Press later reported that while Duggan said the deleting of emails was a “mistake in judgment,” Wiley and others involved would not be punished. Wiley did have to take public records training, according to the Free Press.
COVID-19
MIOSHA, NSF to help educate businesses on COVID compliance BY CRAIN'S DETROIT BUSINESS
A new partnership aims to help Michigan businesses reach compliance with COVID-19 pandemic regulations. Businesses can schedule free COVID-19 safety consultations as a part of the new Ambassador program partnership with Ann Arbor-based NSF International and the Michigan Occupational Safety and Health Administration, according to a news release. “Ambassadors” visit businesses to offer education toolkits and support to implement regulations on workplace safety, but will not propose citations or issue penalties. The partnership with NSF International, a not-for-profit that helps develop public health and safety standards and certification programs, is enabling MIOSHA to drastically expand access to the program immediately. Officials aim to have up to 20 NSF-employed ambassadors visiting businesses. Earlier in the pandemic, NSF collaborated with cultural organizations in Detroit’s Midtown area to adapt their operations to the age of COVID-19. How much the state is spending on the program was not immediately available. In addition to tier-one education, which provides a brief consultation, businesses can visit the COVID-19 workplace safety website to schedule tier-two consultations and in-depth assessment of workplace safety requirements with NSF International. Tier-two visits, which will run twothree hours, are targeted to at-risk industries such as retail stores, restaurants and gyms where the risk of community transmission is heightened. Businesses that successfully complete tier-two visits will receive official signage to acknowledge COVID-19 workplace safety commitments and efforts to keep customers
The MIOSHA Ambassador Program aims to help Michigan businesses operate safely during the COVID-19 pandemic. | MIOSHA
and employees safe. Some 2,300 tier-one visits are planned through the end of the year and 7,000 more during the first half of next year, a MIOSHA spokeswoman said. An undetermined number of tier-two visits are also planned. Educational materials in the Ambassador toolkit can be found at Michigan.gov/COVIDWorkplaceSafety, including a sample COVID-19 preparedness and response plan, reopening checklist, posters, MIOSHA guidelines and factsheets for employers and employees. “We’ve worked with hundreds of businesses and institutions around the world to minimize COVID-19 risks for employees and customers. This program will help Michigan businesses understand regulations and best practices so they can keep their doors open,” Paul Medeiros, managing director of NSF International’s Consulting and Technical Services group, said in the release. Employers and employees with specific questions regarding workplace safety and health can contact MIOSHA at 855-SAFEC19 (855-7233219). Businesses can sign up to participate at Michigan.gov/COVIDWorkplaceSafety.
WHITMER
From Page 3
While Whitmer often finds herself at odds with elected Republicans, statewide she continues to garner high marks for her actions. As of late October, some 54 percent of Michigan voters viewed the governor favorably, and 59 percent approved of the job she’s doing, according to a Detroit NewsWDIV poll. Still, the vitriol aimed at Whitmer and her use of executive action runs deep. In an Instagram post last week, Kelly Stafford, wife of Detroit Lions quarterback Matthew Stafford, slammed the governor over another round of business shutdowns as COVID-19 cases surge. “I’m going to be very blunt: I’m so over it,” Kelly Stafford said, while acknowledging the severity of the disease. “I’m over living in a dictatorship that we call Michigan.” Stafford later apologized, saying she “got caught up in the heat of the moment.”
‘It’s frustrating’ Whether Whitmer’s use of powers truly are any more hard-fisted than her predecessors is largely up to debate. But what is clear is that Whitmer’s use of her powers has angered her political
opponents to no end, and has gone as far as a foiled alleged kidnapping plot by extremist militia members. An early era of bipartisanship with the GOP Legislature in the first half of Whitmer’s first year in office has now given way to frustration, and the two sides are at political loggerheads on nearly every big-ticket issue. Most recently, on the afternoon of Nov. 13, Whitmer’s administration informed Canadian oil company Enbridge Inc. that it planned to revoke the company’s nearly 70-year-old easement to operate the Line 5 pipeline running underneath the Straits of Mackinac. Citing safety concerns, the administration says the oil must stop flowing within 180 days. The move by Whitmer brings into question whether a 2-year-old plan — agreed to by Enbridge and Snyder — to build a tunnel under the straits that would house the pipeline will move forward. The abrupt action by Whitmer has exasperated state Sen. Wayne Schmidt, R-Traverse City, whose district includes much of the northern Lower Peninsula and eastern part of the Upper Peninsula. “It’s frustrating” Schmidt said specifically of Whitmer’s plan to shut down the pipeline, saying he supports holding Enbridge accountable for its less-than-stellar environmental record, but believes the planned tunnel
project will bring the necessary relief. Whitmer’s move, Schmidt said, amounts to a political show. “We’re going to get the tunnel. Let’s hold Enbridge’s feet to the fire, make sure they continue to operate the pipeline safely as they are now and get that tunnel done,” he said. “But this is just more delays. Quite frankly, it’s political gamesmanship and a distraction, post-election.” To that end, neither Enbridge nor Operating Engineers 324, a trade union set to help build the tunnel, expects that Whitmer’s move to withdraw the easement will actually curtail the tunnel construction. “The truth is, (Whitmer) has not stopped the tunnel from being built,” said Dan McKernan, communications director for OE 324. “We’ve continued to move forward because we know how important it is.”
‘It takes two to tango’ But without question, the COVID-19 pandemic has resulted in the highest tensions between Whitmer and her critics, both elected and nonelected. Just days after Whitmer’s health department ordered new shutdown measures, a handful of Republican state lawmakers last week unveiled a resolution to move for impeachment proceedings against the governor. GOP legislative leaders, however, quickly
April releasing emails between her office and GOP leaders as doing little to improve negotiations. Now, he said, Republican lawmakers simply see little in terms of good-faith negotiation with the state’s chief executive. “It takes two to tango and I’m not going to say my side of the aisle has been perfect. Don’t get me wrong, and I’ll take the hits for those,” Schmidt said with a laugh. “But it takes two to tango, and if you’re the governor, you lead that dance.” Whitmer has said that she believes the state’s public health code grants her the necessary power to act as the pandemic continues raging. As of Thursday afternoon, Michigan’s seven-day rolling average for new cases had climbed to almost 7,000 and the average daily deaths stood at 61. But there’s also a good political reason for such authority, notes Bagenstos, the UM law professor. “I think there is a justification for saying that when a governor has legal authority to do stuff, and is willing to take the political heat for doing it, you know, that that’s something we should encourage, because that creates accountable government,” he said. “She’s the one person who the people of the state will hold accountable for success or failure here.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes
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ETHEL’S
CLASSIFIEDS
From Page 3
“When people go somewhere, they want to take something everyone can enjoy,” said Bommarito, whose family history with celiac disease dates back 40 years. Those with the immune disease can suffer small intestine damage from ingesting gluten, a protein found in wheat, rye and barley. Bommarito grew up in the Flint area. She remembers making the drive to Henry Ford Hospital in Detroit with family members for treatments and diagnosis. “I watched how terrible it is to live in a world where you can’t experience amazing food,” she said. “I was the recipe director for my family. I could figure out how to make real foods that are gluten free. It’s so much more acceptable today. I didn’t start (the business) because it’s a fad. I started it because it’s what (my family) lived. ... I wasn’t driven to do this by a bottom line. If you have to eat gluten free every day, you deserve to have something that tastes amazing.” Bommarito in 2011 began wholesaling her products in a church space. She tested the items in her own kitchen, then at the April 2011 Gluten Free Food Fair in Farmington Hills. The first items tested were the Pecan Dandy and Blondie. Bommarito delivered the company’s first order to Plum Market on Aug. 23, 2011. “That’s where the journey started,” she said. Ethel’s snacks, named in honor of Bommarito’s grandmother, Ethel St. John, are sold in 1,500 stores in 44 states and Canada. The baked goods are now the No. 1-selling handcrafted food item in the country, Bommarito said. That has led to several companies inquiring about doing business with the family-owned business. Along with the new bigger space comes new products. Ethel’s will make single-serve baked goods to be sold in a variety of grocery and convenience stores, including Whole Foods, Meijer, Fresh Thyme and Kroger as well as national chain Giant Eagle, with stores in Pennsylvania, Ohio, West Virginia, In-
said they have no plans to undertake such proceedings. Whitmer orchestrated the state’s stay-at-home orders from mid-March through early June with a pair of decades-old executive authority laws that allowed her to unilaterally shut down wide swaths of the state’s economy, and keep in place a state of emergency. But the state Supreme Court narrowly and along party lines ruled such powers unconstitutional following a lawsuit by Republican lawmakers who have griped since April that they’ve been left out of the process. The newest shutdown orders came through the state’s health department, and have already been challenged in court. For her part, Whitmer says there’s little negotiation to be done with those lawmakers, as they been unwilling to pass significant legislation tied to the COVID-19 crisis in recent months. Most notably, Whitmer has called for the health department’s mask mandate to be codified into law, which has not happened. Schmidt, the Grand Traverse County Republican lawmaker, said the issue as he sees it is a lack of trust of the governor and key members of her staff dating back to at least the 2019 budget process that resulted in Whitmer unilaterally using her executive power to transfer $600 million that had been budgeted by the Legislature. Schmidt also cited Whitmer’s staff in
To place your listing, contact Suzanne Janik at 313-446-0455 or email sjanik@crian.com www.crainsdetroit.com/classifieds
Creative Design Specialist The Creative Design Specialist will report to the Director, Events & Marketing and will play a pivotal role in the production of videos for marketing initiatives across the organization. In addition, this creative specialist will be skilled in design work in print and digital media. Responsible for working in collaboration with other members of the marketing and events team across six publications to conceptualize and execute design projects to support marketing and the promotional process of products and events.
Ethel’s Baking Co. products | KAT STEVENSON
diana and Maryland. The treats are also sold locally at Westborn Market and Randazzo Fresh Market locations. Ethel’s snacks have come in packs of three that are sold for $8-$10. The individual items will be priced at about $3, Bommarito said. She estimates the company will sell close to 3 million units this year. “In this new world with COVID, people want to buy items that nobody else has touched. Our single-serve baked goods will be just as fresh as everything else we offer,” said Bommarito, a resident of Grosse Pointe Woods. “We’ve remained committed to the handmade process from the start. I believe in our customers and those people who care about food. They’ll pay for the real deal. We invest in the time to make things like your grandmother would.” To accommodate the growth, Ethel’s will go on a hiring blitz that will see the company grow from 16 employees currently to 65 by 2023. Most of the roles will be filled by production and packaging team leaders, along with a plant director, national director of sales, quality assurance manager, food service sales and controller. The new Shelby Township location allows the company to gain efficiency on the packaging side, Bommarito said. A new machine will allow Ethel’s
staffers to package 82 bars per minute, as opposed to 55 previously. Even in the midst of the pandemic, Ethel’s Baking is expecting a 10 percent bump in revenue over last year, Bommarito said. There have been no layoffs to this point in the pandemic, she said. “We delivered every purchase order on time. I’m really proud of our team,” she said. “We all work very hard. We’ve had our ups and downs (during the pandemic). We signed our long-term lease one month before COVID hit. We never flinched. We believed we’d find a way to do this and that we’d be OK.” Bommarito believes the company will be more than OK going forward. “Our goal from the beginning was to become the Pepperidge Farms of the gluten-free world,” she said. “We want people to remember and know us 75 years from now. We want to have gluten-free food in places where everyone shops. “There’s so much happening. I hate talking about numbers, but we’re going to do close to $10 million in retail business. There’s a fascinating journey ahead. I expect that we’ll make a long-lasting impact on the baking industry.” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
Visit crain.com/careers/ for more information and available positions.
Digital Specialist Crain’s Global Polymer Group is seeking a Digital Specialist who will own digital campaigns, webpage development, coordinating and producing virtual events, and provide metrics and analytics to the team. Reporting to the Director, Events & Marketing, and working closely on a with the Sales Directors, in support of the sales, marketing and events teams for the Group’s six brands: Plastics News, Rubber & Plastics News, Tire Business, European Rubber Journal, Urethanes Technology, Sustainable Plastics. This position will be in the Detroit office, although the organization is currently working remotely. Visit crain.com/careers/ for more information and available positions.
VISIT OUR WEBSITE: www.crainsdetroit.com/classifieds NOVEMBER 23, 2020 | CRAIN’S DETROIT BUSINESS | 15
Commercial landlords DESPERATE should brace for rough ride From Page 1
BY KIRK PINHO
Some commercial landlords should brace for another possible disruption to their revenue streams. New guidelines from the state that went into effect at 12:01 a.m. Wednesday halt things like dine-in restaurant service and close movie theaters and entertainment venues as COVID-19 cases have spiked dramatically in recent weeks, including 9,779 new cases Friday. Experts believe restaurants, which historically operate on razor-thin margins as it is, will be hardest hit and their landlords should prepare for tough discussions ahead. “It is certainly not good,” said Paul Choukourian, executive managing director in the Southfield office of Colliers International Inc. “Whatever restaurants were holding on, this could be a death blow to them.” It’s the latest body blow for the commercial real estate industry, which like virtually every other industry has been battered by the COVID-19 pandemic since March. Hotels experienced record-low occupancies in the spring as travel was constricted and some of the region’s best-known are now months behind on their mortgages. Malls were shuttered. Major retailers filed for bankruptcy protection, with the pandemic being the fatal blow. In Michigan, most commercial construction halted for weeks. Even more than they already were, shoppers were driven online, leaving brick-and-mortar shops without the needed web infrastructure suffering. Unemployment has crimped discretionary income, and many office tenants in the region remain in WFH mode, leaving buildings empty and landlords wondering how space will be reconfigured in the future, post-COVID-19. All that was even before the latest crush of cases. There are now 12 million known cases in the U.S. and more than 250,000 deaths, 10 times the number of people killed in car crashes each year, according to CNN. “We have restaurants in every one of our shopping centers and they are all closed now,” said Christopher Brochert, owner of Bloomfield Hills-based Lormax-Stern Development Co., which owns shopping centers and malls in Met-
HOSPITALS
From Page 1
Nationally, COVID-19 deaths have exceeded 251,892 with 11.7 million cases, according to Johns Hopkins University. Global deaths have topped 1.36 million with 56.7 million cases and coronavirus is not slowing for countries that don’t take the virus seriously. In Michigan, more than 17 hospitals are already above 90 percent bed occupancy, including several Ascension Health hospitals in East Tawas (100 percent), Standish (100 percent), and Grand Blanc (94 percent). In metro Detroit, DMC Receiving Hospital is at 98 percent capacity, McLaren Flint at 97 percent, DMC Harper University at 96 percent, Ascension Providence Novi and Ascension Macomb Oakland Warren, both
ro Detroit and elsewhere. He is also a co-owner with Dennis Archer Jr. of Central Kitchen in Detroit. “I said to a friend of mine, ‘Let’s meet for coffee.’ But we can’t go anywhere. It goes back to national leadership and lack of it.” And Steven Silverman, senior vice president for investment advisory and brokerage services for Farmington Hills-based Friedman Real Estate, said there is going to be “an exponential rise in restaurant closures later this year and into early next year, especially if the new restrictions are extended” and if the state or federal government doesn’t provide additional support. “The same goes for mom and pop and local retailers,” he said. “Large corporate retailers like Amazon, Costco, Target, Walmart and Home Depot will continue to see in-store and e-commerce figures soar as people do their holiday shopping online. Unfortunately, it’s going to be difficult for local retailers to keep up due to inclement weather, lack of e-commerce and distribution abilities. This will have a trickle-down effect for local landlords as well.” The outlook for retail landlords wasn’t rosy even before the state’s new orders, which last until Dec. 8 and effect other things like casinos and schools, for example. Moody’s Analytics data shows that in the Detroit retail market, effective rents are expected to plunge more than $2 a square foot in the span of a year: $15.94 per square foot in the first quarter, mostly before the first COVID-19 cases were reported in Michigan, to $13.87 per square foot next year. A Q3 market report from the Colliers office in Southfield says the region has 233.1 million square feet of retail space across 25,655 buildings, and a vacancy rate of 5.5 percent. “In a nutshell, it is awful for business, but does that mean it’s wrong?” Kyle Darcy, founder and lead broker for Detroit-based Uncommon Space, wondered. Her company, started last year, focuses on retail in Detroit after she spent several years with Dan Gilbert’s Bedrock LLC. “I believe in doing what we can to keep each other safe.” Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB at 93 percent, and Henry Ford Macomb at 91 percent, said the state Department of Health and Human Services on Nov. 19. “It’s probably more challenging in many, many regards than it was in the spring because we’re dealing with a tremendous amount of COVID” in all parts of the state,” said Dr. Nick Gilpin, medical director of infection prevention and epidemiology with eight-hospital Beaumont Health. “Our most precious resource that we have right now is staff. Once upon a time, I was worried about PPE, I was worried about testing, and I was worried about all those different material things.” Gilpin said “staff doesn’t grow on trees” and frontline workers are growing fatigued and some are getting sick from coronavirus, as are many other Michiganders. He said Beaumont has sufficient staff now,
16 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
But at least it was still doing some business, he said, and now its back to pure cash bleed. Glantz’s frustrations are shared by others who question the acGlantz tions of Gov. Gretchen Whitmer’s administration. An order allowing malls to stay open but not bowling alleys, for example, feels arbitrary to those it hurts. Glantz, who said there is no evidence of COVID-19 spread in movie theaters, sued Whitmer unsuccessfully over the summer. He said he is contemplating filing another lawsuit in response to the new order, as the Michigan Restaurant and Lodging Association did last week. “Realistically, the reason that movie theaters were the last to open is because we were the last to withdraw our lawsuit,” Glantz said. “Our governor is by nature vindictive, so it doesn’t surprise me that she’s taking out retribution on my industry again for our temerity.” Whitmer’s press secretary Tiffany Brown told Crain’s in a text message that the governor continues urging the federal government for more assistance to help small businesses and unemployed workers. Emagine’s employee count has gone from around 1,200 to 200. The company received $1.7 million in federal PPP loan assistance, and Glantz said he hopes 60 percent of it will be forgiven. He said as business stands now, he has the cash reserves to make it through the first quarter of next year. That’s not the case for others.
ties and payroll. “We’re gonna have to stop the bleeding,” she said. “If we go past the busy season and into the spring, we’re gonna have to liquidate, we’re gonna have to close our doors and we’re gonna have to move on, and probably out of the state of Michigan. I can’t live in a state where there’s a war on business.” The same financial pain is felt at Imperial Lanes in Clinton Township. Co-owner Joe Biondo said he is “very frustrated” with the new order and that based on the March shutdown order, he believes Whitmer will extend the current order past the stated threeweek timeline. “That’s what we’re worried about,” Biondo said. “Are COVID cases going to go down dramatically enough? Probably not. If people don’t bowl, they don’t pay.” Biondo estimates his 80-lane alley will lose about $150,000 over the course of the new three-week shutdown. Its 45 employees will be out of work. Biondo received a PPP loan of $150,000-$300,000 in April, according to Small Business Association data. He said he used the funds to pay five or six full-time employees, along with rent, utility bills and insurance. With 80 lanes, Imperial is one of the larger bowling alleys in the area. Upon reopening in September, Biondo noted about 40 percent of league bowlers did not return. Money from the leagues make up about a third of the bowling alley’s revenue, Biondo said. “Not only are we losing bowlers, we’re losing potential revenue from food and the bar,” Biondo said. “If this only lasts the three weeks, everybody will come back. If it stretches longer than that, I don’t know.”
Theater closes
Waterford Lanes is likely to go under if it stays closed this winter, said Michele Craft, who owns the bowling alley with her husband D.C. The couple spent their life savings reviving their business after the original location burned down in 2012, investing around $500,000 into the alley since. Just in the past few months, the Crafts said they have spent thousands of dollars on plexiglass barriers, hand sanitizer stations, disinfectant fogging machines and food and beverage to restock the bar. Sales are down by 50 percent from the same time last year. The couple received a PPP loan of an undisclosed amount and used it for utili-
Entertainment venues have been hit especially hard during the pandemic. The Ringwald Theatre in Ferndale has become a popular entertainment venue since opening in 2006, but pandemic and its fallout has led to the theater and its players opting to leave their home on Woodward Avenue. The Ringwald’s lease expires at the end of this month. Its landlord presented the group, led by art director Joe Bailey, with a new one-year lease option that included a $100 per month rent increase. The increase, which would put the payment at $3,300 a month, was noted in paperwork signed in 2019, but Bailey hoped the landlord would consider the current climate and eliminate the increase. Instead, theater leaders voted to close that location and seek a new home. Bailey estimates the theater group has lost $150,000 since shutting down
supplemented by “a recruiting binge” and use of agency nurses, but Gilpin also worries what the situation might be like in March if trends of positive cases, hospitalizations and deaths continue upward. “You can manufacture beds, you can stand up field hospitals, you can put people out on the lawn, but you need staff to care for those patients,” said Gilpin. “That’s something that we are struggling with in every health care system that I’m aware of.” At 15-hospital Spectrum Health in Grand Rapids, Dr. Darryl Elmouchi, president of Spectrum Health West, said late last week the system had 345 admitted COVID-19 patients, a number that has doubled in the past three weeks. Elmouchi said a large percentage of patients are in intensive care beds, which have been increased by 30 percent the past two weeks by con-
verting medical and surgical units. But Elmouchi said Spectrum’s modeling shows that by Dec. 2 the numbers of patients requiring admission could double again to more than 600. Spectrum is battling rising numbers on two fronts. Early last month, Spectrum Health reported 62 employees had confirmed cases of COVID-19. Now, Elmouchi said those infected health care workers have increased to about 700, or 2.3 percent of its 31,000 employees. “About 60 percent knows where they (became) positive in the community. Twenty percent aren’t sure and 20 percent thought at work. Most exposures were from other staff, not patients,” Elmouchi said. “Hospitals are not meant to be socially distant.” The week of Nov. 12-19, , Michigan recorded 57,000 new confirmed cases — a number it took Michigan more
Break point
Joe Biondo of Imperial Lanes. | JASON DAVIS/ CRAIN’S DETROIT BUSINESS
in March,but has paid its rent and utility bills on time. It has had two virtual productions that were well attended, Bailey said, and a third is set to begin Dec. 4. The Ringwald does not have a paid staff; performers are paid on a per-project basis. Pay often depends on the success of a particular show, Bailey said. “When we initially closed back in March, we thought it’d be a couple of weeks or a month. Eight months later, there’s no sign when we’ll be able to get back at it at the capacity that’s needed for us to survive,” Bailey said of the 70seat venue that has been home to the theater group for 14 years. “Once we sat down and started to really talk about the ramifications of it, it sort of made sense to not continue in this space.”.
‘Trying to figure things out’ Officials in one metro Detroit downtown are looking for ways to help affected businesses. Greater Royal Oak Chamber of Commerce Executive Director Shelly Kemp said she’s talked with Oakland County officials about the prospect of installing outdoor, semi-permanent than two months to reach at the start of the pandemic through mid-May, the state said. As of Nov. 19, 285,398 Michiganders have contracted the virus and 8,324 have died. Under the state’s current COVID-19 mitigation strategy, data modeling shows by March 15 another 1.5 million people will become infected with coronavirus with another 23,576 deaths, according to the COVID-19 Simulator from MGH Institute for Technology Assessment and Harvard University in Boston, which Michigan and most states use for projections. “We are going to be pushing our limits over the next few weeks,” Gilpin said. “It’s going to get a lot worse before it gets better.” Contact: jgreene@crain.com; (313) 446-0325; @jaybgreeneRum
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business was solid despite the limitations on capacity. He said running the business, at 2921 E. Grand Blvd. in Detroit’s Milwaukee Junction area, has not come without its issues. Some employees have missed work either due to contracting COVID-19 or facing symptoms. Gadbaw said he understands the need for the order, but he’s still disappointed. “As far as numbers go, restaurants are responsible for less than 5 percent of positive cases,” said Gadbaw. “Sometimes it feels like restaurants are used as the scapegoats. As a restaurant owner, chef and employer, to have to lay everybody off during the holiday season is tough.” If the order lasts only the three weeks, Gadbaw stands to lose between $120,000 and $160,000. He’s hopeful that’s the extent of the order, if for no other reason than to put his employees back to work. “... To provide income for the people who depend on me. (The weekly unemployment payments) don’t go far when you have kids to feed and bills to pay. I understand (the order) might go longer than three weeks, in which case, I don’t have any answers. This is my entire life’s work.” Two Detroit restaurants, Cutter’s Bar
& Grill in Eastern Market and Ivy Kitchen and Cocktails on East Jefferson Avenue, were finding momentum and just about to expand their hours when word of the second dine-in lockdown came. Owner Chuck Nolen kept Cutter’s closed through the first approximately six months of the pandemic, opening for dine-in service three days a week on Sept. 11. With half-capacity restrictions and a dearth of staff generally available for restaurant work, many have shortened their serving hours during the outbreak. “We were going to expand and add a couple days, but this just set us back again,” Nolen said. He’s heading into his busiest time of the year for gatherings and holiday parties. Also, in a normal year, bars would be prepping for the evening before Thanksgiving, often dubbed the biggest bar night of the year. So now, instead he’s pivoting to carryout and planning to start selling cocktails to-go out of specially designated pouches and mason jars. Nolen had a staff of 21 before the pandemic, then went down to eight to 10 this fall and expects to run carryout with three or four employees. He estimates he was doing 30 percent-35 percent of normal sales under restaurant capacity restrictions. Nolen said he’s worried about sales, but “we’ll get through.” He also worries about the lack of a second federal stimulus package. He said he is down a ballpark $500,000 in revenue from last year. He was approved for a PPP loan, as well as various other funding like from the Wayne County/TCF loan program. Nya Marshall, owner of Ivy Kitchen and Cocktails, was also planning to add to her limited dine-in service before the state’s new order came down. With revenue down 54 percent and lack of staff limiting her open hours, she said she was finally building the momentum and the cohesive team to add Sunday dinner to the roster starting this weekend. Ivy was previously open Thursday-Saturday and just for brunch on Sunday, with 22 employees. She’ll need to furlough most of them. Marshall added that she resolutely supports the state health department’s decision and the need to stem the spread of COVID-19. But she’s also stuck with thousands of dollars in food inventory after raising $15,000 in a crowdfunding campaign, 90 percent of which was spent on inventory to sell. “(The order) shocked me, quite honestly … because Wayne County numbers aren’t seriously high,” Marshall said. “I was shocked to learn that day spas and the mall and retail were able to remain open.”
hired him amid promises that better days were ahead for the nation’s largest utility. PG&E still faces the daunting task of trying to upgrade its elecRochow trical equipment at an estimated cost of $40 billion while also trying to avoid causing more wildfires during hot and windy weather conditions by deliberately turning off the power for extended stretches in parts of a service territory that includes Silicon Valley, San Francisco, Northern California wine territory and Yosemite. Poppe said she is aware of the challenges at PG&E and looks forward to helping the company achieve its goals of moving toward a clean en-
ergy future that will help the nation combat the dangers of climate change. She said she took the job for two reasons. “One, CMS and Consumers Energy is in such great shape. We have really wonderful things going on and a deep leadership bench,” Poppe said. “Garrick Rochow has been my partner for the last decade. We’ve worked hand in hand, side by side. He runs all of our operations today and he’s going to be a great CEO. “At PG&E, they are facing some real challenges that have an effect on the pace of the clean energy transition and on the safety and wellbeing of both the employees at PG&E as well as the state more broadly. I felt truly I was called to serve. I felt like I could help.” Former DTE CEO and PG&E CEO Tony Earley, who served as CEO of PG&E from 2011 to 2017, said Poppe
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structures in the area for dining and socializing, similar to a program implemented in downtown Northville. “We’re all trying to work together right now,” Kemp said.“We’re all trying to figure things out. I know the retail order was maybe not totally clear, but we’re trying to keep everybody safe. Of course the restaurants are worried. Hopefully (the order) isn’t in place too long.” The city’s downtown is dotted with empty storefronts, some related to the pandemic, some for other reasons. The current vacancy rate was not available. “Our numbers are better than others. It’s not the perfect atmosphere, but it could be worse,” Kemp said. Town Tavern, part of the Roberts Restaurant Group, closed in May, citing COVID-19 issues. A new casual American fare bar and restaurant called The Side Bar was recently approved to open there.
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From Page 1
Garrick Rochow, executive vice president of operations, will succeed Poppe as CMS Energy and Consumers Energy president and CEO and on CMS Energy’s board of directors. On Jan. 4, Poppe will take over from PG&E’s interim CEO William “Bill” Smith. She will be a member of the boards of directors at PG&E and Pacific Gas and Electric Co. She is taking the reins of a company that has had a revolving door in the CEO role while trying to deal with maintenance problems that have linked the company’s grid to deadly wildfires. She will replace interim CEO Bill Smith, who filled the void after the previous CEO, Bill Johnson, stepped down just 14 months after PG&E
COVID-19 compliance complaints surge, overwhelming oversight BY DUSTIN WALSH
COVID-19 infections continue to reach new heights across Michigan. Health authorities continue to play whack-a-mole in shutting down potential sites viewed by the Department of Health and Human Services as high-risk spread sites. Meanwhile, the Michigan Occupational Safety and Health Administration is receiving record complaints from employees throughout the state. The state’s industry safety hotline and online complaint portal received 8,690 complaints between March 2020 and early this month — more than the department received in 2017, 2018 and 2019 combined. The department estimates 95 percent or more of the complaints are COVID-19 related, where an employee believes their employer is not taking the proper precautions to protect employees from exposure. The MIOSHA and health department data reveals a more mixed picture of where COVID-19 is potentially spreading than the state’s shutdown orders. Of the nearly 9,000 complaints fielded by MIOSHA, 21 percent of them came from employees in the manufacturing sector, compared to 15 percent from the accommodation and food sector. The same disparity exists in the number of COVID-19 outbreaks — defined as two or more patients with COVID-19 linked by a common location via contact tracing — in the sectors as well. As of Nov. 5, the state identified 48 outbreaks at restaurants and bars, compared to 66 at manufacturing and construction sites. The state lumps manufacturing and construction under the same category in the reporting. Lynn Sutfin, spokesperson for the MDHHS, said it’s more difficult to track outbreaks at restaurants disseminating from patrons who come and go without identifying themselves to the staff and, therefore, the outbreak data isn’t the complete picture. The state attempted to make it a requirement that restaurants take names and numbers from diners earlier this month, but it walked back the order is up to the task. “She is one of the outstanding CEOs in the industry. And she’s taking a job at one of the most complex, most important companies in the industry. So I think it’s a win-win,” Earley said from his winter home in Arizona. With 23,000 employees, PG&E has more than three times the employees Consumers does, at 7,500. PG&E serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. Poppe will become the sixth fulltime CEO PG&E has had since it ended an earlier stint in bankruptcy that lasted from 2001 to 2004 after the company got caught in a financial bind caused by the manipulation of California’s power market. PG&E’s most recent bankruptcy, though, was brought on by years of neglect as the company cut corners on maintenance and upgrades in an
MIOSHA’s COVID-19 hotline by the numbers Complaints received by month: ` January - 210 ` February - 222 ` March - 938 ` April - 1,038 ` May - 757 ` June - 766 ` July - 1,495 ` August - 1,170 ` September - 920 ` October - 1,211 ` Nov. 1-5 - 395
to a recommendation a day later after outcry from restaurants. “Outbreaks are easier to identify in settings where people live, work, or study,” Sutfin told Crain’s. MIOSHA is also now going to more closely engage public-facing employers it isn’t normally in close contact with, such as restaurants and bars. Last week, the state announced a free program for those employers to provide COVID-19 mitigation education and consulting on measures provided by Ann Arbor-based certification and testing nonprofit NSF International. The consultations are made available to “at-risk” businesses that include retail stores, restaurants and gyms. Since March, MIOSHA has received 1,566 complaints from retail outlets, our about 18 percent of compliance complaints. “Ambassadors” will visit businesses to offer education toolkits and support to implement regulations on workplace safety, but will not propose citations or issue penalties. Businesses that complete the consulting and implement the recommended protocols will receive signage signifying they have completed the program. Some 2,300 tier-one visits are planned through the end of the year and 7,000 more during the first half of next year. Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh effort to boost its profits and stock price. More than 120 people died in wildfires linked to PG&E’s outdated equipment during 2017 and 2018. The company emerged from the Chapter 11 bankruptcy in July. Poppe’s efforts to shift Consumers Energy from fossil fuels to renewable energy will serve her well at PG&E, Earley said. “PG&E is at the forefront of the battle against the impacts of climate change,” he said. “We’ve all read about the wildfires in California and the devastating impacts that climate change has had on the California forest. She’s gonna have to try and figure out a strategy to deal with that ... figure out a way to continue that leadership position in battling climate change.” Bloomberg News contributed. Contact: jgreene@crain.com; (313) 446-0325; @jaybgreene
NOVEMBER 23, 2020 | CRAIN’S DETROIT BUSINESS | 17
THE CONVERSATION
Pandemic, health of small business top of mind for SBAM’s Calley SMALL BUSINESS ASSOCIATION OF MICHIGAN: After serving as Michigan’s lieutenant governor under Gov. Rick Snyder from 2011 to 2019, Detroit native Brian Calley joined the Small Business Association of Michigan as president because of the organization’s reputation and a mission that inspires him every day. Calley, 43, began his career as a banker and says his professional life and career have always intertwined with small businesses. The small business landscape has been hit hard by the pandemic. | BY JASON DAVIS ` Prior to joining SBAM, you served as Michigan’s lieutenant governor. How did you come to join SBAM? (Small business) is in my blood. After leaving office there are a number of directions I considered going. SBAM gives me the opportunity to be very engaged in the public policy arena, without the political environment dominating every waking moment of my life. It is a 51-year-old organization with an A-plus team behind it. ` What exactly does SBAM do for small businesses? SBAM provides extensive services to small businesses of all types. We have over 28,000 members and continue to grow. Our core services include best practice and compliance education, group purchasing, state and federal advocacy, political candidate vetting and endorsements, energy efficiency services, association management and lobbying, and COBRA administration and insurance. Our services to our members evolve with the needs and demands of our members. ` How, if it has, has SBAM’s role changed since the pandemic hit? Everything about how we operate and serve our members has been impacted by the pandemic. Our workforce has been, and remains, mostly remote. The emphasis on small business advocacy and compliance education has become more prevalent than ever before. Our team of 27 is hardworking, smart, experienced and nimble. Our goal is to help small businesses anticipate and prepare for a dynamic and constantly changing environment. Our members have never needed us more, and the SBAM team has been up for the challenge. ` With the election now behind us, what does the result mean for small businesses going forward? Anytime that leadership in political offices changes, there is a period of uncertainty. But SBAM is a strategically bipartisan organization. We see the value and necessity of maintaining strong working relationships across the political aisle for the benefit of our
members. I am confident that we will continue to have a voice at the table at the highest levels of government. `The $100 million in CARES Act funding is close to exhausted. How important is it for a new federal stimulus plan for small businesses in Michigan? Is there anything else that can be done? Is there anything else in the works? The economy is stronger right now than most people would have guessed it would be six months ago. But extraordinary challenges and risks remain. For the hardest hit industries, we believe an additional round of Paycheck Protection Program-style support from the federal government will be necessary — especially for those businesses still operating under operational capacity restrictions. Additionally, it is important that the next federal stimulus package reverse the IRS decision to not allow deductibility of expenses paid for by PPP proceeds. ` Gov. Whitmer put in a new, modified stay-at-home order that took effect Nov. 18. How will this round of closures affect small businesses and why do you think some businesses were able to remain open after having to close in March? The financial health of businesses is highly tied to what industry they operate in. Manufacturing, construction and large retailers are doing pretty well. But most restaurants, hospitality businesses, entertainment venues, sports-focused enterprises and certain service sectors are all facing catastrophic failure through no fault of their own. The main difference between now and March is that there are no federal funds and many of these businesses are already severely weakened from long-term closures and restrictions imposed over the spring and through the summer. `Based on what you’ve heard, are business owners worried about having to close for good due to a slowdown in traffic? The experience of small businesses during the pandemic is highly correlated with industry. There are many types of professional services that are operating
at levels similar to, or even exceeding, pre-pandemic levels. Most sectors within manufacturing seem to have recovered nicely. But many, perhaps most is a better description, businesses in the hospitality and entertainment industries are in critical condition. Additionally, there are several sectors that face extraordinary challenges in the future because of the changes that could endure beyond the widespread distribution of an effective vaccine. Commercial real estate, brick and mortar retail, dry cleaners, restaurants that rely on office worker foot traffic. Some things won’t go back (to normal) because of the new operating models that are being developed today. This era will reshuffle the deck in many ways. There will be big winners who are well positioned to adapt to, or even drive the change, but there will also be many who lose everything.
ing the Christmas holiday? For retailers and restaurants near major retailers, the holiday season makes or breaks the year. As purchasing habits change, even a strong overall holiday season for retail could be catastrophic for local businesses if consumers are not intentional about keeping their business local. ` How long do you plan to stay with SBAM? You should expect to be able to reach me at SBAM for a long time.
REPORTERS
Brian Calley is president of the Small Business Association of Michigan.
`What worries business leaders most about the current surge in COVID-19 cases? The surge in cases adds so much more uncertainty to the picture. Will we be able to remain open? What actions will government take? How will employees respond? Will employees have access to child care? When you ask a struggling small business owner if they believe they will be able to survive through this pandemic, the answer is often “tell me how long it will last and I’ll tell you if I can survive."
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` How much help will sales during the holiday season provide small business owners in terms of cash flow to help them through what is traditionally a slow time follow-
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18 | CRAIN’S DETROIT BUSINESS | NOVEMBER 23, 2020
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Crain’s Detroit Business 20 in their 20s and 40 Under 40 honorees gathered virtually on Monday evening for a celebration of their achievements. Winners accepted their awards by video, reflecting on their journeys, thanking their mentors, families and colleagues and sharing hard-won wisdom and words of advice. The event also featured surprise congratulations video messages from awardees’ family, friends and co-workers.
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Ashley Williams, founder and CEO of Detroit-based Rizzarr, emceed the event, which also featured a performance from special musical guest Curtis Roach, the 21-year-old Detroit artist behind the viral TikTok song “Bored in the House.” Watch the online program (or rewatch it) at crainsdetroit.com/webcast-archive. Nominations are now open for Crain’s 2021 20 in their 20s — get started at crainsdetroit.com/nominate.
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.
CONGRATULATIONS TO THE 2020 GRADUATES OF
Kyle Johnson
Lisa Riccobono-Coates
Devin Adams
Emma Laut
Kierra Riser
Aaron Appel
Marqueta Marsh
Mike Rowe
Reggie Brown
Mary Mbiya
Nick Vettraino
Clarence Gayles
Maria Menard
Director of Strategic Engagement, Thomas Group Consulting
Group ManagerIndustrial Engineering, Ghafari Associates
Maria Willett
Mark Geary
Fred Nazarko
Osmara Zarate
Vice President & Director of Personnel, GTJ Consulting
Retail Area Manager, Huntington Bank
Crain’s Leadership Academy is a nomination-based program focused on deepening and building leadership skills with a mix of guided conversations, group interactions
City Controller, City of Westland
Sr. Operations Manager, Brilliant Detroit
Director of Implementation Strategy, Walker-Miller Energy Services
and breakout sessions. We asked one participant to summarize his key takeaways; this is what he had to say: Growth & Development Manager, Brilliant Detroit
Leadership is the process of becoming the best version of you. It is exactly that simple and exactly that difficult.”
Marketing Insights AnalystOutreach Director, Crain’s Detroit Business
Director of External Communications & Media Relations, Beaumont Health
Senior Human Resources Business Partner, Lineage Logistics
VP, Diversity & Inclusion Director, Flagstar Bank
SVP; Business Banking Market Manager,
Thanks to this year’s LEADERSHIP ACADEMY GUEST SPEAKERS:
KC Crain
President and COO, Crain Communications
Laura Grannemann
Vice President, Quicken Loans Community Fund
Tony Saunders CEO, Fathead
Linzie Venegas Vice President, The Ideal Group
Principal Technical ManagerElectronics, Autoliv
Director of Operations, KLA Laboratories, Inc.
Chief Assistant to the Mayor, The City of Rochester Hills
Executive Administrator & Community Outreach Coordinator, Ideal Group
Jesse Venegas Vice President, The Ideal Group
NOMINATIONS OPEN SOON for next year’s Crain’s Leadership Academy; get more information at crainsdetroit.com/LeadershipAcademy
Addressing the need for healthcare & healthy food Here in Detroit, people of color are being disproportionately impacted by this health and humanitarian crisis, requiring improved access to healthcare services and food assistance. At Bank of America, our commitment is unwavering. Building on work we’ve had underway for many years, we’re investing $1 billion over the next four years to advance racial equality and economic opportunity, and the well-being of our neighbors — including right here in Detroit. We’re partnering with local healthcare systems and nonprofits that are increasing medical testing and treatment capacity and are providing enhanced access to nutritious food. Together, my teammates and I are working for healthy, sustainable change here in Detroit. We’re committed to doing more, and doing more now.
Matt Elliott Detroit Market President
Healthier together Here in Detroit, we’re working with local organizations that are providing vital access to healthcare and nutritious food. They include: Salvation Army Gleaners Community Food Bank Lighthouse of Michigan
To learn more, please visit bankofamerica.com/community
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