Crain's Detroit Business Feb. 15, 2021, issue by Crain's Detroit Business

The pandemic and the pawn shop: Sales are up, but loans are down. PAGE 3

THE CONVERSATION The WellBridge Group’s Mike Perry talks of his long road as nursing home CEO in the age of COVID-19. PAGE 22

CRAINSDETROIT.COM I FEBRUARY 15, 2021

FINANCE

DeVos, Penske back new ‘patient’ PE fund New pool of capital targets middle-market, small businesses BY NICK MANES

A host of Michigan business titans see opportunity to strengthen the state’s small and middle-market businesses with an influx of patient capital. Doug DeVos, as well as Roger Penske and other unidentified business leaders from around the state, have decided to pool resources into the Michigan Opportunity Fund, a private equity venture being run by Grand Rapids-based Auxo Investment Partners, which aims to provide a new option to the state’s small and middle-market business owners looking to transition their companies. At issue for business leaders like DeVos, a billionaire heir to the Adabased multilevel marketing giant Amway Corp., is the traditional PE model that champions holding acquired companies for a relatively short period of time. That period is often just three to five years before the PE fund makes its exit that ideally delivers hefty returns for investors, often large pension funds and other institutional groups. The Michigan Opportunity Fund, DeVos said, aims to be more handson in the operations of companies that ultimately end up in its portfolio, and would be open to holding businesses in perpetuity. The fund hopes to fill the gap of “time and attention and staying close,” DeVos told Crain’s in an interview. See FUND on Page 18

PIECING TOGETHER A PIVOT Gowns, caps and masks stitched by workers at Pontiac-based Detroit Sewn stand apart from most other PPE: They’re reusable.

| PHOTOGRAPHS BY VALAURIAN WALLER FOR CRAIN’S DETROIT BUSINESS

Seven business owners share lessons learned, what will stick in a post-pandemic world “Pivot” might have been the word of 2020. Now some time has passed, and the pandemic pivots that businesses made to stay afloat have had some time to play out. This week, we catch up with an array of businesses to see how those pivots turned out — and which might be permanent.

Product manager Keith Honda handles new drink creations for Dessert Oasis. This year the coffee shop expanded into bottling.

FOCUS | ENTREPRENEURSHIP IN THE AGE OF COVID-19 | PAGES 10-13  A shift to producing personal protective equipment gives Detroit Sewn a new purpose. PAGE 10

 Startup founders Sassa Akervall, Fares Ksebati and Yashar Niknafs report on their pandemic pivots. PAGE 12

 At Dessert Oasis coffee shops, a shift to e-commerce boosts the bottom line. PAGE 12

 Curbside pickup and other pandemic-era shopping trends are here to stay at Lafayette Foods. PAGE 12

 Switching to sanitizer production was a lifeline to breweries like Griffin Claw. PAGE 13

NONPROFITS

Art Van founder’s foundation takes form, with a deadline NEWSPAPER

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BY SHERRI WELCH

A second charitable foundation that doesn’t aim to live forever is now operating in Southeast Michigan: the A.A. VanElslander Foundation. As it works to fulfill a $20 million commitment its namesake, the late Art Van Furniture founder Art VanElslander, made to the Solanus Casey Center before his death, the foundation is beginning to look at what it

will fund next. The roughly $45 million foundation is inviting proposals from nonprofits that fit into its search for innovative, entrepreneurial leadership. “In terms of the spend-down model, Dad believed the people who really knew him and knew what was going on in his head and heart would be the best ones to make the decisions,” said Kenneth VanElslander, one of his 10 children and a trustee of the foundation. Three of VanElslander’s other nine

children — Gary, David and Debra — and Diane Wells, COO of VEC LLC and executive director of the foundation, also serve as trustees. VanElslander offered a hint spenddown was a possibility the year before his 2018 death, when during an interview with Crain’s he spoke of his admiration for his former Grosse Pointe neighbor, the late Ralph Wilson Jr. See FOUNDATION on Page 20

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NEED TO KNOW

ECONOMIC DEVELOPMENT

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT  HEALTH SYSTEMS JOIN NATIONAL DATA VENTURE

a propulsion plant and a casting facility to boost full-size pickup transmission capacity, including $93 million at its Romulus propulsion plant to increase machining capability.

THE NEWS: Local health systems have joined a national effort to create a startup that aims to make better use of hospital data. Detroit-based Henry Ford Health System and Livonia-based Trinity Health are both partners in the joint venture, known as Truveta, which aims to make use of the mountains of data generated by hospitals and use it to improve care. Tenet Health, parent company of the Detroit Medical Center, is also one of the 14 health systems nationally involved in the effort. WHY IT MATTERS: Truveta, the for-profit startup venture, will be based in Seattle and jointly owned by the partners. It will sell access to the pool of data, which it says will be anonymized. The partners said the data set will also help new insights and treatments be found and shared more quickly.

 UWM MOVES TO DISMISS BROKERS’ LAWSUIT THE NEWS: Mortgage lender United Wholesale Mortgage Corp. has moved to dismiss a lawsuit filed late last year by independent brokers who claim their contracts were breached when the Pontiac-based company changed commission structures.

WHY IT MATTERS: The investments will back additional production of GM’s 10-speed automatic transmission used in the Chevrolet Silverado and GMC Sierra light-duty pickups. Pickup trucks have been one of the most profitable business lines across the automotive industry.

 LEGACY DMC WINDS DOWN, RETURNS FUNDS WHY IT MATTERS: UWM (NYSE: UWMC) alleges that the brokers were among a small few who had been “churning” borrowers, or urging them to refinance loans in short intervals so they could earn additional commissions. The mortgage wholesaler has built a fast-growing empire by catering to independent brokers and helping them compete against banks and retail mortgage lenders. It says there are fewer than 100 brokers out of roughly 11,000 it does business with that would be part of the class affected.

 GM TO INVEST $93 MILLION IN ROMULUS PLANT THE NEWS: General Motors Co. plans to invest a combined $100 million in

THE NEWS: With its decade-long oversight of the Detroit Medical Center’s compliance of certain community commitments winding down, Legacy DMC has returned $2 million in oversight funds to both the DMC Foundation and The Children’s Foundation. Legacy DMC said it expects the remainder of the funds, approximately $500,000 to each, will be returned to the foundations later this year. WHY IT MATTERS: The foundations each contributed $2.5 million upon the formation of Legacy DMC at the beginning of 2010, when the Detroit Medical Center was sold and converted into a for-profit organization. Legacy DMC held those funds in the event of unexpected expenses as part of its oversight role.

Ex-House Speaker Chatfield to lead Kalamazoo agency  Former Michigan House Speaker Lee Chatfield has been named the CEO of Kalamazoo-based economic development organization Southwest Michigan First. The former Republican lawmaker from Emmet County in northern Michigan was term-limited out of office after six years in the state House late last year, and until Thursday had not announced any further professional plans. A native of rural northern Michigan, Chatfield, 32, will move to the Kalamazoo area, he confirmed to Crain’s in a text message. Chatfield assumes leadership of the more than 30-year-old economic development group following the resignation late last year of longtime CEO Ron Kitchens, who took a similar position at an organization in Birmingham, Ala. Southwest Michigan First administers a wide array of economic development efforts around the Kalamazoo region, an area with a heavy concentration of manufacturing companies, as well as health care and medical device, transportation and logistics, and design.

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2 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

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GOVERNMENT

What’s in Whitmer’s proposed budget for businesses BY CHAD LIVENGOOD

The big winner among businesses in Gov. Gretchen Whitmer’s 2022 state budget proposal may be day cares and service sector companies with lower-paid workers who need daytime child care in order to show up to work each day. The Democratic governor’s day care plan calls for a three-year expansion of income eligibility for taxpayer-subsidized child care to 200 percent of the federal poverty level — or $52,400 annual income for a family of four — from 150 percent of the federal poverty line or $39,300 annually. Whitmer’s plan also calls for a 10

Learning Tree Child Care Center in South Lyon remained open in 2020 but with far fewer children. | LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

percent boost to provider rates to day cares that receive state subsidies. And the plan would pay day cares based on the number of students enrolled in their programs, not by attendance, which has fluctuated over the past year because of forced shutdowns and declining enrollment during the COVID-19 pandemic. Because of budgetary constraints on the horizon in the 2023 fiscal year, the child care eligibility expansion would be temporary through Sept. 22, 2022. The income threshold would then permanently revert to 160 percent of the federal poverty level, state Budget Director Dave Massaron said. But for the rest of 2021 and the first

nine months of 2022, the governor’s plan would expand access to lowcost child care for 150,000 children from working-class families, Massaron said. “How many children take advantage of it, obviously, will depend on the course of the pandemic,” Massaron said. All told, Whitmer’s plan calls for a $370 million, multiyear investment in child care programs and the industry itself, including $55 million in direct grants to child care businesses to help them remain open while enrollment remains low during the pandemic. See BUDGET on Page 18

FINANCE

RETAIL

Detroit bond sale aims at socially conscious investors Proposal N targets blight removal BY ANNALISE FRANK

American Jewelry and Loan co-owners Les Gold (left) and son Seth Gold are opening two new Downriver locations. | TANNER FRIEDMAN

PAWN SHOPS SHINE

American Jewelry and Loan to expand as business up during pandemic BY JASON DAVIS

American Jewelry and Loan, the Detroit-based business of reality show “Hardcore Pawn” fame, is expanding as business across the pawnbroker industry remains strong during the pandemic. American Jewelry and Loan, with locations in Detroit, Hazel Park and Pontiac, is set to open two new shops this week, one in Southgate and the other in Lincoln Park. The company, in business since 1978, saw its last expansion in 2016, with the opening of a new store in Hazel Park and a relocated store in Pontiac. The spaces have been purchased. Gold declined to give de-

tails on the purchases. The Southgate location will be housed in a renovated 4,000-squarefoot space at 14336 Eureka Road. The Lincoln Park store will be in 9,000 square feet at 1456 Fort St. Fifteen jobs will be created with the establishment of the new locations, bringing the company’s total employees to more than 50 across five locations, according to co-owner Seth Gold, who runs the business with his father, Les. The Golds had been discussing expanding for some time and saw an opportunity in the Downriver market. “In our Detroit location, we see a lot of people from Downriver,” Les Gold said. “We decided to take our logo to them.”

The Lincoln Park location will serve as a full-service pawn shop, with items such as electronics, tools, video games and jewelry. The Southgate location will offer the same type of items, but on a smaller scale. Both stores will also have new and pre-owned items for sale, Seth Gold said. American Jewelry and Loan, which garnered fame with the popular television series that was produced 2010-14 for TruTV, was deemed an essential business — pawn shops are generally classified as financial institutions, which were exempt from closure — and so was able to continue operating during the pandemic. See PAWN on Page 17

“IN OUR DETROIT LOCATION, WE SEE A LOT OF PEOPLE FROM DOWNRIVER. WE DECIDED TO TAKE OUR LOGO TO THEM.” — Les Gold, American Jewelry and Loan

The city of Detroit is targeting a crowd of investors that’s rising in popularity during the pandemic to buy the bonds it’s issuing to pay for blight removal efforts. Under Proposal N, approved by voters in November, Detroit is taking on debt to fuel the $250 million project and expected to officially issue the first chunk of bonds, $175 million, last Thursday. The city’s financial minds designated the new debt as “social bonds,” which means the city is using its proceeds — the money it gets on loan through the bond sale — in a way that meets certain socially conscious goals: affordable housing, affordable infrastructure and economic empowerment of disadvantaged people, for example. Investors are increasingly turning to these bonds as the pandemic and social unrest have fueled interest in combating various forms of inequity and racism, according to credit rating agency S&P Global Ratings. S&P says issuance of all forms of “sustainable debt,” including social bonds and green bonds, rose 60 percent last year. “Detroit’s trying to attract those social investors. By doing that for the blight removal, that’s obviously kind of a new niche market in this area that I think will probably attract some attention,” said Eric Scorsone, professor and director of the Center for Local Government Finance and Policy at Michigan State University. “That, I think, is notable because maybe others could take advantage of that in the future, if this works well. We’ve seen this expansion of people who want to invest in things that provide that public good ... So you do have a significant, it’s probably the minority of money, but a pretty significant investor class.” See BONDS on Page 20 FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 3

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REAL ESTATE INSIDER

Welcome to all.

The 1 million-square-foot Penobscot Building has lost tenants and has some serious maintenance issues. | LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

Everything has a price tag. Guess how many zeroes are in the Penobscot’s.

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4 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

It’ll take a lot to get the Penobscot Building owner to sell. To be clear, whether a building owner is marketing it or not, everything is alKirk ways for sale — for PINHO the right price, that is. Everyone has a number. It just so happens that the skyscraper’s owner’s number is nine digits. Toronto-based Triple Properties Inc., which paid around $5 million cash for the 47-story skyscraper at 645 Griswold St. in 2012, turned down a $70 million offer in 2019 and made clear that they would not take less than $100 million, or about $100 a square foot, I’m told. “We don’t comment on rumors and speculation in the marketplace,” Steve Apostolopoulos, managing member of Triple Properties, told me. He stressed that the building is not on the market. Regardless, that’s a big ROI for the iconic 1 million-square-foot building that is in desperate need of repairs, not to mention tenants. JC Reindl at the Detroit Free Press reported on some of them last week, and I reported on the Penobscot’s woes most recently in August. According to Jessica Parker, the Buildings, Safety Engineering and Environmental Department chief enforcement officer, an inspector went to the building last week and found that there is no water supply on floors 26 through 44, inoperable water pump controls on floors 26 through 44 and inoperable condensation pumps that flooded the basement. She said heat and power have been brought back to the building and water to the upper floors was expected to be resolved last week. “BSEED will be issuing an emergency correction order with a compliance date for Wednesday, 2/10/21,” Parker said in an email. “BSEED and Law has already discussed pursuing a NAP (nuisance abatement program lawsuit) at this point due to the lack of urgency to make the necessary repairs to correct the ongoing violations. BSEED/ Law would also note that during litigation in the Department of Administrative Hearings the owner (respondent) continues to request the dismissal of noncompliance tickets but yet the issues have not been resolved.” Lawrence Garcia, the city’s corporation counsel, said in a statement Tues-

The new Bamboo coworking space in downtown Royal Oak is now open. | BAMBOO

day that Triple Properties accrued 177 blight violations last year. He also said that “the Law Department is in the process of preparing a nuisance abatement lawsuit to address the persistent public nuisance issues at the Penobscot.” In addition to those serious maintenance issues, the building is only about half full. CoStar Group Inc., a Washington, D.C.-based real estate information service, says only about 53.5 percent of the building is leased, leaving hundreds of thousands of vacant office space on the market. The asking rent is $21 per square foot per year. At that rate, the leased space would bring in $11.18 million per year, or $931,782 per month. That does not account for fluctuations in rental rates over the years, and property taxes, insurance, maintenance, management and leasing eat into the ultimate profit the Apostolopoulos family pulls in each year from the building. But with no known debt on the property, Triple Properties can sit on the building for as long as it wants, put in virtually no effort to renovate it, and eventually cash out in a city that’s wildly different than it was nine years ago. It lost key tenant Strategic Staffing Solutions as a tenant last year and was sued over building upkeep. “Strategic Staffing Solutions resolved its litigation with the landlord of the Penobscot Building late last year,” Jennifer Belveal, partner in the Detroit office of Foley & Lardner LLP, said in an email. “Strategic Staffing Solutions is satisfied with the outcome of its lawsuit and S3 is happy to be conducting its business from the historic Fisher Building in Detroit.” The Penobscot’s neighbors to the north and south have all sold in recent

years. To the north, Dan Gilbert — who tried to buy the Penobscot about a decade ago — bought the former Dime Building (now Chrysler House) at 719 Griswold St. for $15.4 million in 2011, according to city land records. To the south, Zaid Elia paid $16.35 million for the Ford Building at 615 Griswold St. and Gilbert paid $38.5 million for the Buhl Building (535 Griswold St.) and its parking garage (525 Griswold St.) in 2017. The Ford Building and Buhl Building sales were in 2017.

Bamboo opens new Royal Oak location Coworking space company Bamboo has opened its downtown Royal Oak location at 220 S. Main St. in the former Bright Ideas Furniture building. The company, which was cofounded by CEO Amanda Lewan, brought more than 20,000 square feet to the market in the building, which it purchased for $3.7 million. The new location, Bamboo’s first outside of Detroit, was announced in February 2020. The building was redeveloped by Detroit-based developer Ferlito Group and designed by Synecdoche Design Studio. “Talent lives everywhere in metro Detroit, and it is our mission to support that talent by serving as a connector to promote regionalism across the state,” Lewan said in a press release. “Having a centralized suburban location not only allows us to create a fantastic, state-of-the-art facility to better serve the state’s growing startup and business community, but allows us to act as a catalyst for continuing to attract talent to metro-Detroit.” Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

TECHNOLOGY

NONPROFITS

Entrepreneur’s venture rides wave of COVID change

Southwest Solutions names CEO

Ann Marie Sastry’s Amesite focuses on education technology market BY NICK MANES

Veteran Michigan entrepreneur Ann Marie Sastry sees opportunity to tap into the rapidly changing world of education technology that’s sure to be retained post-pandemic. Sastry made news in 2015 when she sold her lithium-ion battery company Sakti3 Inc. to Dyson Ltd. as part of a $90 million deal, at which she continued working at for a time before leaving the major corporation in 2017. Sastry’s involvement in Sakti3, which she largely declined to discuss on the record, earned her a spot as one of Crain’s 2015 Newsmakers of the Year. Sastry’s newest venture, Amesite Inc. (NASDAQ: AMST), formally launched in November 2017 with a focus on “looking at how the world learns,” Sastry told Crain’s late last year. In a September initial public offering, the Detroit-based company netted $15 million in new capital. In its latest initiative, the company is partnering with Wayne State University to provide artificial intelligence learning for alumni of the Detroit university seeking to secure further education in the electric vehicle sector. The six-week training program will grant certifications in the area of autonomous vehicle technologies, data science, electric vehicle technologies, mobility as a service and autonomous

“IT’S BEEN OBVIOUS FOR SOME TIME THAT ONLINE LEARNING IS A WAY TO GET LEARNING EXPERIENCES TO PEOPLE.” — Ann Marie Sastry

systems programming. “We chose to partner with Amesite because they offer the most advanced online learning platform in the market today,” Farshad Fotouhi, Wayne State’s dean of the College of Engineering, said in a news release announcing the partnership. “The feedback from our students and instructors has been overwhelmingly positive.” Wayne State pays Amesite an undisclosed fee to license the platform and provide content.

Sastry, in an interview with Crain’s in November, identified such programs as a key emphasis for the company, given the reality of the current education landscape. “It’s been obvious for some time that online learning is a way to get learning experiences to people,” Sastry said. “And it’s also been obvious that people are not going to do four-year degree after four-year degree. “They’re going to upscale and people are going to be lifelong learners.” Like most things, the COVID-19 pandemic has upended many parts of everyday life and created an opening for companies like Amesite. Once the pandemic hit last spring, many industries were able to rely on technology investments and continue operating largely undisturbed. The nation’s education system did not have such ease, Sastry said. “Education was thrown for a loop. And the type of the lack of a digital backbone, the lack of resiliency, the last lack of mass customized solutions of the kind that are offered through AI, became painfully painfully obvious,” Sastry told Crain’s in an interview late last year. “And learning markets, in some sense, seized up as they as they tried to use tools that really were never meant to support fully online learning.” A July 2020 report from Grand View Research pegged the global market for

education technology at $76.4 billion and forecast to grow 18.1 percent on a compound annual growth rate between 2020 and 2027. “EdTech is expected to play a crucial and significant role in creating jobs for future generations,” the report says. “Education across the globe is shifting towards student-centric and more inclusive learning. A key component of making an inclusive learning environment is implementing assistive technologies in an attempt to better cater to students with special needs.” Approaching 3 1/2 years old, Amesite is very much still in the growing phase. For the period that ended Sept. 30 the company reported net revenue of $110,000 and marked down a $5 million loss. Sastry said that in this business the revenues will be recognized later, and the changes to the education sector brought by the pandemic should go a long way toward fueling that growth. “We are quite optimistic about fast growth,” Sastry said. “One of the things that has happened in EdTech is that because online hasn’t been a priority (and) a lot of institutions rely on free tools. Well, those free tools are worth what you pay for.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

BY SHERRI WELCH

Southwest Solutions has named Wellspring Lutheran Services executive Sean de Four as its new president and CEO. His appointment comes almost three years after the nonprofit’s longtime CEO John Van Camp retired and turnaround efforts helped the nonprofit break even last year. De Four, 44, will leave his position as senior vice president and COO at Wellspring Lutherde Four an Services to join Southwest effective March 15. Flint-based Wellspring provides an array of services from foster care and parenting support to behavioral health services, senior living and hospice care. De Four succeeds Joseph Tasse, who was named interim CEO in October 2018 charged with carrying out strategies developed over the six months prior by turnaround consultant Fred Leeb. SPONSORED CONTENT

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have access to Lockton’s DEI and Talent & Culture practices to help them create a more diverse and inclusive workplace. This practice is made up of HR advisors who provide clients with the benefit of an all-in-one strategic advisor, advocate and overall experience manager to help meet all their talent and culture needs. Brian Roberts is Chief Diversity Officer and Director of Operations for Lockton Companies.

You might be surprised to see an insurance broker as a leading advocate for diversity, equity and inclusion (DEI), considering the lack of diversity in the industry as a whole, but Birwood is different. CEO Kenneth Hurtt is positioning Birwood to play a pivotal role in changing the make-up of the insurance industry and its clients’ businesses. Hurtt and the Birwood team see an opportunity to leverage the nation’s free-market system of commerce to begin addressing racial and economic disparity. Here are three ways Birwood hopes to make progress in partnership with its clients.

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FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 5

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NONPROFITS

Michigan Good Food Fund to forge long-term relationships Effort is to expand support to Black- and Brown-owned companies, product offerings BY SHERRI WELCH

Last year, when COVID-19 forced people into isolation, Quiana Broden’s Detroit restaurant and kitchen classroom, The Kitchen by Cooking With Que, had to shut down like all the rest. But even with the loss of cash from dine-in customers and in-person classes, she was able to sustain takeout at the restaurant and meet surging demand for her company’s mealprep or prepared healthy meals delivery and purchase food up front, thanks to a $30,000 loan from the Fair Food Foundation and ongoing technical assistance from the Ann Arbor-based nonprofit and other partners in the Michigan Good Food Fund. The fund’s partners knew Broden and her ambitious business model (which also includes a catering business and fresh produce food boxes) and had built a relationship with her starting in 2018 when she attended an accelerator event. They often spoke weekly to help ensure finances were in order, to set pricing for the prepared healthy meals service she added in late 2019 and to provide secondary financing to ensure her business could stay afloat and meet rising demand in the midst of the pandemic. Year over year, Cooking With Que’s business is up 43 percent right now, with increased demand for prepared meal boxes, virtual classes and takeout at the restaurant, Broden said. She ended 2020 with revenue of just under $600,000, about double the amount she brought in the year before. Now, as she makes plans to gain much-needed additional space by renovating the basement in her leased Woodward Avenue space on the border of Detroit’s Midtown and New Center areas, the Michigan Good Food Fund partners are there again, working with her to identify funding for the renovation and helping market the prepared meals line after working with her to set new pricing — $180 per box for a week’s worth of healthy prepared meals — that took effect Feb. 1. “When the pandemic started, I had my (13) employees still working, and it was draining our operations because we couldn’t have customers in,” Broden said.

support to over 300 Michigan food businesses that have created or retained more than 1,000 jobs, according to a new report. Of those, 53 percent were owned by people of color, and 52 percent were led by women. Going forward, it will seek to expand its relationships with the companies it supports, Watson said. As it takes on administration of the fund this month from Capital Impact Partners, the Fair Food Network will coordinate resources the Good Food Fund partners can provide to better support healthy food entrepreneurs. “That’s a shift; it’s more about growing and cultivating business than just focusing on the near-term transaction,” Watson said. With that approach, the fund will be able to offer companies additional support as they grow, increasing the chances they will succeed over time, he said. “I think we all realize it does take an ecosystem to support any entrepreneur,” but the approach will be particularly helpful to Black- and Brown-owned companies that traditionally struggle to get follow-on capital, Watson said.

Quiana Broden, owner, Cooking with Que. | COOKING WITH QUE

“WE NEED TO INCREASE THE CHANCES OF BUSINESSES BEING AROUND IN FIVE YEARS, ESPECIALLY FOR BLACK- AND BROWN- (OWNED) BUSINESSES.” — Mark Watson, managing director of the Fair Food Fund

The fund’s partners walked Broden through how she could pursue bigger government contracts with the Detroit Health Department and Detroit firefighters to keep revenue coming in. And they stepped up with the loan to help her cover upfront costs until payment came in. “That was a big deal for us. We needed that,” said Broden, 42. “If they didn’t support me in that way, I would not have been able to keep my doors open.” That’s the type of relationship the Michigan Good Food Fund will look to expand as it heads into its next five years, said Mark Watson, managing director of the Fair Food Fund, which took on the role of administrator of the larger fund in January. “There’s a lot of activity around incubating and catalyzing them, but a lot of (minority-owed) businesses

fail,” he said. “We need to increase the chances of businesses being around in five years, especially for Black- and Brown- (owned) businesses.” Even before the pandemic, minority-owned small businesses in Michigan were under pressure. In 2018, there were 169,363 minority-owned businesses in the state, according to the U.S. Small Business Administration. By the first quarter of last year, that number had dropped by 100,000 to 69,149. “It’s a shocking statistic,” Watson said. As it heads into its next five years, the Michigan Good Food Fund is shifting to a relationship-driven model with small businesses rather than a transactional one to help ensure small businesses have the support they need to grow.

The fund’s partners also plan to introduce new products and expand the offering of others. And they will put as much as half of their resources behind Black- and Brown-owned businesses, Watson said. “While we’ve done some transactions and we’ve provided a lot of (technical assistance), we will do more as a portion of the work we do over the next five years.”

Focus on relationships The Michigan Good Food Fund, a $30 million public-private loan fund, launched in 2015 to provide financing and business assistance to entrepreneurs engaged in food production, distribution, processing, marketing and retail projects in underserved communities across the state. It began with four partners: Capital Impact Partners, Fair Food Network, Michigan State University Center for Regional Food Systems and W.K. Kellogg Foundation, with initial funding from the Kresge Foundation, Max M. & Marjorie S. Fisher Foundation, Northern Trust Corp. and the federal Healthy Food Financing Initiative. Over the past five years, the fund has invested $17 million, providing

New and expanded products At the same time, the Michigan Good Food Fund will expand its support for healthy food businesses in underserved areas by expanding what it can offer companies, Watson said. It will continue making grants and expand microloans and lines of credit, while adding loan guarantees, convertible securities/debt and mission-related private equity (from investors interested in supporting efforts such as those tied to social determinants of health, the environment and social justice) to its offerings. “We all know we need to lean in this direction, but this is the design year of what do we do differently,” Watson said. The fund plans to put in place systems to measure the outcomes of the relationship-driven strategy, he said. “It won’t just be how many loans or grants we gave. It will be what happened to the business over five years.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

SPORTS BUSINESS

Is Mat Ishbia shopping around for an NBA team? BY KURT NAGL AND NICK MANES

Mat Ishbia may be looking to purchase a professional sports franchise sooner than he’s let on. The billionaire president and CEO of United Wholesale Mortgage Corp. told Crain’s in early February that he one day hopes to own a professional sports team, but that there had been “no talks, no conversations,” even internally, about buying one. However, there apparently have been conversations in his inner circle. In an interview with Crain’s last week, former Detroit Pistons “Bad Boy” and UWM board member Isiah Thomas

Ishbia

Thomas

said he and Ishbia have looked at possibilities of owning an NBA team. “We have looked at several opportunities,” said Thomas, who referred to Ishbia as a close friend and confidant. “I think Mat would be an exceptional

owner of a team, and I believe when the right one comes into play, I think he’ll be ready to take the reins.” Thomas declined to elaborate on what those opportunities are or in what way he is involved in them. “He and I are very close, and also he’s one who advised me in the business space, and I’ve called on him quite frequently in the past to help me navigate some of our growing pains and likewise, so we have shared advice with each other,” Thomas said. “We’ve become very good friends.” UWM spokeswoman Nicole Roberts told Crain’s that Ishbia was unavailable for an interview on the topic.

“… I can tell you with confidence that Mat purchasing a NBA team, or any sports team, is not imminent,” she said. UWM (NYSE: UWMC) went public last month via reverse merger with a “blank check” company sponsored by billionaire private equity executive Alec Gores, the older brother of Detroit Pistons owner Tom Gores. That's fueled speculation that Ishbia wants to buy the Pistons. The Pistons have repeatedly denied that the team is for sale. Pro sports franchises don't regularly hang up "for sale" signs, but the pandemic's disruption to the industry has

led some owners to consider exiting. The Minnesota Timberwolves are reportedly being marketed for sale for $1.2 billion. The Utah Jazz sold for $1.66 billion last fall. Tom Gores bought the Pistons in 2011 for $325 million. Ishbia has a net worth of about $10.7 billion, according to Bloomberg, which puts him among a very small group of people wealthy enough to afford a professional sports franchise. He often talks about the major influence basketball has had on his life and business. Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

6 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

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COMMENTARY

Want political civility? Show Mike Shirkey the door.

enate Majority Leader Mike Shirkey’s unchecked use of misogynist and xenophobic language and peddling of debunkable conspiracy theories are quickly becoming a black eye for the Chad Michigan business comLIVENGOOD munity’s long-stated goal of making our politics more civil. Shirkey privately bragged last week about metaphorically spanking Gov. Gretchen Whitmer and that he has pondered punching her. While being secretly recorded Feb. 3 at a restaurant in Jonesville, the Legislature’s senior Republican leader told a group of Hillsdale County Republican Party officials that he has even contemplated challenging Whitmer to a fistfight on the Capitol lawn — “once or twice.” Shirkey also fed these men the red meat they wanted to hear: Falsehoods that the Jan. 6 pro-Trump mob’s attempted insurrection at the U.S. Capitol was a “hoax” and a “staged” riot. “That wasn’t Trump people,” Shirkey said. And two weeks ago, Shirkey seemed fixated on Whitmer’s appearance delivering her State of the State address — not the content of her speech — by saying she “looked delightful” not wearing a mask. The week before that, Shirkey boasted that the “Chinese flu army sent in one of their best soldiers” when he contracted the coronavirus in December. “His name was Rona,” Shirkey said on “The Bart Hawley Show” on JTV. “I’m not as young as I used to be, so he and I wrestled for nine days, but I finally pinned him.”

Michigan Senate Majority Leader Mike Shirkey at the Mackinac Policy Conference in 2019. | DALE G. YOUNG FOR CRAIN’S DETROIT BUSINESS

In any corporate workplace, Shirkey’s behavior would generate considerable pressure to resign his leadership post. In the workplace that sets standards and rules for the rest of us, Shirkey doesn’t answer to anybody, except maybe his own. The Michigan business community is best positioned to place considerable pressure on Shirkey — a Jackson businessman — and the Senate Republican caucus to push him out of the Senate Majority Leader’s office. This would require some put-your-money-

where-mouth-is commitment by the business lobby in this state. Stop writing checks to the Senate GOP campaign fund. Make rank-and-file senators understand that Shirkey’s behavior is abhorrent. If Michigan’s business leaders are really committed to promoting civility in politics, it’s hard to fathom how they can support Mike Shirkey remaining in control of one house of the Legislature. The reason is simple: Shirkey is now a lia-

bility to the global Michigan brand. During the Gov. Rick Snyder years, there was a lot of emphasis placed on changing the tattered image of Michigan as a state where all the political leaders do is fight. The number of panel discussions about civility, cohesion and can’t-we-all-just-getalong at the Mackinac Policy Conference and Business Leaders for Michigan summits cannot be counted on two hands. The nation’s image of Michigan last week is Shirkey featured in a front-page New York Times report about how he met with unnamed militia members last fall to advise them on their public messaging and establishing codes of conduct. Some self-styled militia members took part in the assault on the U.S. Capitol last month, according to the FBI, and others were part of a plot to kidnap and likely murder Whitmer. The Times article underscored how Republican leaders like Shirkey legitimized and emboldened these groups before they marched on the Capitol last month. Now Shirkey is denying — at least privately — that there was a mob that stormed the U.S. Capitol chanting “Hang Mike Pence” as the vice president fled the house of democracy. Having a legislative leader who openly denies Trump supporters trashed the Capitol and assaulted dozens of police officers in a murderous hunt for congressional leaders is ignominious for Michigan’s image to the outside world. It looks like we’re a political backwater where one of the top policymakers takes his cues from “patriots” who run around in the woods pretending they’re preparing to go to war against King George III. See SHIRKEY on Page 17

CRAIN’S VOICES

Action today can honor Black History Month all year FAYE ALEXANDER NELSON

lack History Month speaks volumes about longstanding inequities in this country. Personally, I’m always torn between wanting to celebrate the contributions of African Americans and wondering if there should be a Alexander Nelson separate month for us. The fact is, African American history is American history. Without the toil and talent of Africans who arrived as enslaved people and the generations that followed, the America of today would not exist. But we know that symbols and narratives are powerful markers in a culture – especially for children and young people. They tell the story of today and can inspire tomorrow. Lifting up contributions by Black people in our collective history not only helps to restore images erased or buried in earlier eras but sharpens our lens on the future. The

About Crain’s Voices Crain’s Voices is a series of occasional essays from a panel of contributors selected by Crain’s Detroit Business to offer thoughtful, informed commentary that spans the political and industry spectrums. Today’s contributor, Faye Alexander Nelson, is director of Michigan programs for the W.K. Kellogg Foundation..

W.K. Kellogg Foundation’s commitment to racial equity is rooted in that understanding. The truth of the past opens the way to positive action now. That’s our opportunity during this Black History Month. And it could not be more timely. In Detroit, my hometown, COVID-19 has sickened and killed people of color at an alarmingly disproportionate rate. The virus has revealed to some the precarious

economic and health conditions many Black people live with in our communities. Access to employment opportunities, health and safety are not equal in our systems. Compounding these inequities, we have witnessed the brutality of structural racism in the deaths of George Floyd, Breonna Taylor and countless others. In response, many in the corporate sector are voicing support for racial equity. If your organization is one of those, I can recommend two resources to accelerate action in that direction. One Journey offers insight into the Kellogg Foundation’s racial equity journey as an organization. We use the word “journey” intentionally, since we measure our progress in that direction continually. If you are looking for how to turn good intention into practice, download this resource from our website. If you are looking for impetus, have a look at the Business Case for Racial Equity — especially the Michigan data. It lays out a strategy for fostering economic growth, giving businesses a competitive advantage

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.

LIFTING UP CONTRIBUTIONS BY BLACK PEOPLE IN OUR COLLECTIVE HISTORY NOT ONLY HELPS TO RESTORE IMAGES ERASED OR BURIED IN EARLIER ERAS BUT SHARPENS OUR LENS ON THE FUTURE. and widening equitable opportunity. These and other resources are easy to access on wkkf.org — along with live examples of people across the country taking these ideas to scale. When I think about Black History Month, I think about how we can honor the contributions of past thinkers, inventors, artists and teachers by celebrating these individuals not only in February but every day throughout the year. Their actions in the past, and the actions of people in our communities today, can inspire us to make America a better place for all.

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.

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CRAIN’S VOICES

Listening and talking should not be controversial. But they are. BY JOHN RAKOLTA JR.

When did compromise and negotiation become politically incorrect? This troubling news headline recently caught my eye: “White House defends Rakolta Biden’s meeting with GOP senators on COVID relief package.” The article explained that Democrats were upset by President Joe Biden’s willingness to meet faceto-face with 10 Republican senators regarding the massive economic relief package under consideration in Congress. Democrats considered just listening to ideas from the other side of the aisle to be an act of betrayal. Such an untrusting environment does not bode well for our nation. It has been my life experience that few problems can be solved, differences reconciled, or progress achieved without a sincere effort to pursue dialogue, compromise, and negotiation. Here in Detroit, I have participated in successful initiatives addressing race relations and equity in Detroit Public Schools, as well as promoting statewide economic competitiveness. These efforts have taught me that when people have common interests, they can come together and solve even the most difficult challenges, despite deep political, racial, and economic differences. In January I returned to Detroit from my post in Abu Dhabi as U.S. Ambassador to the United Arab Emirates. My service in the UAE, the greatest honor of my life, gave me the

CRAIN’S AWARDS

Is your business a great place to work? Tell us about it Whether your people are fully remote, back in the office, or essential workers on the front lines, a great experience at work — one that makes people feel engaged, motivated and valued — may be more important than ever. Every year Crain’s recognizes these workplaces in our Cool Places to Work awards, a data-based list of the 100 best places to work in Michigan. Here’s how it works: Participating companies provide detailed information on their benefits and policies, and their employees complete a comprehensive, confidential survey about workplace culture, company leadership and other aspects of their experience at work. Results are analyzed and ranked to determine our list of winners. All companies, whether they make the list or not, receive results of the survey to help inform and improve the employee experience. Any company with 15 or more Michigan-based employees is eligible to participate. The deadline to register is March 5. This year’s Cool Places to Work will be featured in the Aug. 23 edition of Crain’s. For more information or to register, go to coolplacestoworkmi.com.

About Crain’s Voices Crain’s Voices is a series of occasional essays from a panel of contributors selected by Crain’s Detroit Business to offer thoughtful, informed commentary that spans the political and industry spectrums. Today’s contributor, John Rakolta Jr., is former U.S. ambassador to the United Arab Emirates and former CEO of Walbridge.

opportunity to be a part of the historic Abraham Accords, the first peace agreements in decades between Israel and the Arab nations of the Middle East. My experiences in Detroit — bridging differences and mistrust through respect, active listening and understanding — served me well as I helped shape the strategic dialogue between the UAE and U.S. that ultimately led to the historic breakthrough in peace negotiations. Central to our progress was the recognition that most people across the globe share common values and goals for their families. It’s a simple but profound notion. Above all, they want peace and safety so that their

children can grow, learn and thrive without fear. When both sides of any negotiation embrace the same end goal a mutually beneficial path can be achieved through negotiation, compromise, and transparency. That’s why I found the headline about President Biden’s meeting so troubling. How could a listening session be controversial? Without dialogue there will be no progress, without progress there will be no solution, without a solution we face increasing hatred and divisiveness. The relationship between Republicans and Democrats is becoming more dangerous and tone-deaf every day. The most radical voices on both

COOL PLACE TO WORK?

BRAG ABOUT IT.

sides of the aisle are the ones that get the media coverage. This dynamic needs to be broken and civility returned. A country divided is not in the best interest of the U.S. and the world. Regardless of the outcome of President Biden’s White House meeting, compromise and negotiation are elements of every important agreement ever reached in Detroit, Abu Dhabi, or Washington. For those on both sides of the aisle, finding common ground, determining our shared destination, is the first order of business. Bring your best ideas and arguments and let us engage. We all need to be in an active listening mode these days.

COOL

Is your company a great place to work? We want to know! The Cool Places to Work in Michigan awards program recognizes and honors the state’s top employers who show a dedication to their employees’ growth and quality of life. In addition to being a prestigious honor to be picked for the list, all participating companies will also receive the results of the employee survey, identifying the strengths and weaknesses of their workplace according to what their employees had to say. Don’t miss out – this is your opportunity to join the ranks of Michigan’s most outstanding companies! Winning companies will be highlighted in a special section in Crain’s Detroit Business on August 23.

DEADLINE: MARCH 5 | REGISTER TODAY: CrainsDetroit.com/Nominate PROUDLY PRESENTED BY:

FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 9

ENTREPRENEURSHIP IN THE AGE OF COVID-19

HOW’D THAT PIVOT PAN OUT? When COVID-19 turned the world upside-down, businesses of every size and stripe had to adapt, and fast. Some changed their product offerings to respond to an urgent need: for face masks, hand sanitizer or low-contact grocery shopping. Others, affected by stay-at-home orders and instant shifts in consumer demand, had to come up with a totally new way of doing business: With restaurants, gyms and coffee shops closed, business owners got creative with curbside pickup, e-commerce and virtual workouts. Almost a year later, the pandemic is still with us. And while everyone is thinking about what a “return to normal” might look like, some entrepreneurs have also found surprising success with their new products and strategies. We talked to seven business owners in metro Detroit about how their pivots are going, what they’ve learned and what they’ll keep doing in a post-pandemic world.

10 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

Pandemic gives Detroit Sewn a new purpose BY DARLENE A. WHITE | SPECIAL TO CRAIN'S DETROIT BUSINESS

Before the pandemic, Pontiac-based sewing operation Detroit Sewn was making fashion for people across metro Detroit. Now, it makes personal protective equipment, a pivot many businesses made in the early days of COVID-19. But something sets their gowns, caps and masks apart: They’re not designed to be tossed at the end of the day. “The pandemic has shifted our purpose,” said Karen Buscemi, president and CEO of Detroit Sewn. “We started prototyping sustainable PPE

back in March 2020, and we haven’t stopped since. We understand the incredible need for washable, reusable PPE. From the cost-effective factor, to eliminating millions of disposable products from landfills, this is the way of the future.” Detroit Sewn started off as a small-batch manufacturer. When the pandemic started last March, Trinity Health reached out to Detroit Sewn with a request for 50,000 much-needed medical masks for hospitals and senior communities in Michigan and other states. “Our largest order had been 5,000 pieces,” Buscemi said. “Suddenly we were getting orders for 50,000 units,

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75,000 units, 100,000 units.” Those large orders kept Detroit Sewn thriving during the economic crunch of the past year. “We never had to lay anyone off, hired through the entire process, and never applied for a PPP loan,” she said. “Also, we have seen increased numbers in our sales.” Buscemi declined to comment further on Detroit Sewn’s financials. She said the sewing company did face challenges along the way. “Our greatest challenge was the supply chain,” she said. “When we received our first order for reusable masks, getting the materials was as easy as any other day of sourcing. But by the second order, it was like the Wild West of sourcing. Our little factory was competing against gigantic manufacturers with cash flow that allowed them to purchase thousands upon thousands of yards of materials, leaving little else for the

rest of us. It was stressful, to say the least.” Detroit Sewn employees coped with that stress by incorporating fitness into their workday routine. “Manufacturing PPE with critically fast turnarounds, that still had to be high quality, is intense,” she said, “We started taking a break every day to stretch and do some yoga poses as a team, and we continue to do it today.” Buscemi said that a year later, there is still high demand for PPE gear. “Companies that understand sustainable PPE, from hospitals to universities, are keeping us busy,” she said. Buscemi said she is happy that her business is able to help during a pandemic. “I cannot begin to express the sense of pride we felt in contributing sustainable products during the PPE shortage,” she said. “It gave us a wonderful sense of unity and purpose.”

s n o i t a l u t a r g n Co INNOVATE. IMPACT. INSPIRE. ilitchbusiness.wayne.edu FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 11

FOCUS | ENTREPRENEURSHIP IN THE AGE OF COVID-19 Q&A

Startup founders report on their pandemic pivots

Akervall

Ksebati

BY NICK MANES

“Pivot” was perhaps the most overused business buzzword in 2020. But back in March, April and into May as shutdown orders and the broader pandemic drastically changed life as we knew it, the word was also the necessary reality for a vast number of entrepreneurs. Crain’s spent a great deal of time in those months tracking the pivots of metro Detroit companies looking for any business model that would help get them through the pandemic. Now, as some light shines at the end of the tunnel, we decided to go back and check in with a handful of companies we had previously spoken with:  Sassa Akervall, CEO of Akervall Technologies, last spring transitioned her Saline-based dental protection company to making personal protection equipment such as face masks and shields.  As pools closed last year, MySwimPro Inc. had to pivot from workouts done in the pool to a more holistic exercise mobile application, according to CEO Fares Ksebati.  LynxDX Inc., a University of Michigan spin-out company, built itself to be a prostate examination company. But as people halted normal medical checkups last year, the company transitioned to providing a COVID-19 testing kit. Yashar Niknafs is co-founder and CEO. Crain’s asked these entrepreneurs for a sense of where each company stands as glimmers of normal business life return. What follows are emailed replies from each of the business owners that have been lightly edited for length and clarity.  To what extent has your company’s pivot been temporary or permanent? Akervall: We have gone back to our core business which is dental protection for sports, dentistry, and certain surgical procedures, although we still have a substantial inventory of face shields left. We actually added on several models for medical and dental use, as well as some models for kids that include vinyls or stickers, making it more of a fun project for parents and children. Ksebati: We continue to focus on the holistic coaching experience for our members. Prior to the pandemic we focused almost exclusively on swim training in the mobile app and our educational content on social media. Today we continue to deliver to our members dryland training in the mobile app and through our growing social media audience. Niknafs: LynxDx has pivoted back to working on prostate cancer. Although most of our team members are working on combating the COVID-19 pandemic, we have a core team of scientists, doctors and support staff working on the prostate cancer business ... We utilize University of Michigan’s “MLabs” facility to run our

Niknafs

prostate cancer assay — allowing our main lab to focus on COVID-19.  To what extent would you say the pivot paid off? Akervall: It absolutely paid off. We wouldn’t have been the same company without the face shields. Fifty percent of 2020 revenue came from there. It is hard to think about how things would have been today if we wouldn’t have had the face shields as our primary source of income. In addition, I’d like to point out that we created over 100 jobs during the peak period of the summer. I’m extremely proud that we were able to pivot to help the company, as well as the community. It was amazing to see how it all came together. The staff did a fantastic job of setting up the production, hiring people and keeping track of everything. And the workers made close to one million face shields. Ksebati: In the long run the pandemic is a bump in the road. We continue to focus on our long-term vision of creating the top fitness brand in the world for swimmers. Niknafs: Our prostate cancer is a small fraction of our overall book of business. This is due primarily to the fact that we became such an extremely large provider of COVID-19 diagnostic testing. Presently, we are the second largest provider of COVID-19 testing in Michigan and we are still growing rapidly in this book of business.  Are there elements of the forced pivot that will remain with the company long term? Akervall: Yes, there are. We have learned a lot along the way, for instance look to your current vendors to see if they can pivot as well so you create a win-win. We did and it worked out beautifully. Looking ahead, we have some ideas of new products that came out of the face shield production but are not necessarily related to that product category at all. Ksebati: The pivot during the pandemic has forced us to accelerate our vision of bringing a holistic coaching experience to our members. Niknafs: The forced pivot has had many long-term impacts. First, it has proven that our management team is much more capable than we would have imagined. We learned quickly to operate as “one team.” Our management team members have complementary skills and we have achieved our successes by working tirelessly towards achieving a common goal: reducing the impact of COVID-19 within our great state. Another longterm impact is that we developed very robust processes — from operations, to hiring staff, to acquiring and securing scarce resources (testing supplies). These processes will serve us well as we commercialize our prostate cancer and other diagnostic assays. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

12 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

“WE’VE HAD A LOT OF ENGAGEMENT ON SOCIAL MEDIA. IT’S BEEN BIG FOR US FOR QUITE A WHILE. I DON’T THINK WE HAVE THE MOST (FOLLOWERS), BUT I FEEL LIKE WE HAVE A REALLY STRONG FOLLOWING.”

Nat sea

— Nathan Hamood, owner, Dessert Oasis Coffee Roasters

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At Dessert Oasis coffee shops, shift to e-commerce boosts bottom line BY JASON DAVIS

Dessert Oasis Coffee Roasters, a specialty coffee shop with locations in Royal Oak, Rochester and Detroit, has used social media as a way to remain viable for the better part of the last year. Owner Nathan Hamood, 25, said platforms such as Facebook and Instagram have allowed him to connect with customers, particularly early on when he didn’t have the funds to advertise elsewhere. As the business grew, Hamood, 13 years old when the family business was established in 2009, used paid Facebook ads to triple the business’ online sales. Social media, Hamood

said, made it possible for Dessert Oasis to compete with larger coffee shops. “We’ve had a lot of engagement on social media,” Hamood said. “It’s been big for us for quite a while. I don’t think we have the most (followers), but I feel like we have a really strong following.” At one point during the pandemic, Dessert Oasis sales dropped 80 percent. Hamood and his staff of 48, which has remained intact over the past year, moved quickly. The business implemented curbside pickup and to-go orders while also tightening spending. Creativity has allowed Dessert Oasis to thrive. The company, with in-

door dining capacity limits in place, has entered into online sales, and ships its coffee and brew-at-home tools nationwide. “We hadn’t really capitalized on the e-commerce side before the pandemic,” Hamood said, adding that Dessert Oasis ended 2020 within 20 percent of its 2019 sales figures thanks in part to online sales. “That has really helped to supplement in-store sales.” The three shops reopened for in-person service on Feb. 1. Hamood said he’ll limit seating times, while also following state guidelines. At 25 percent capacity, the threshold set by the state health department, Dessert Oasis locations, at about 3,000 square feet each, would be able to al-

Curbside pickup here to stay at Lafayette Foods BY DARLENE A. WHITE | SPECIAL TO CRAIN'S DETROIT BUSINESS

From hand sanitizing stations at every store entry and exit to plexiglass partitions and 6-feet markers on the floors, pandemic-era grocery shopping will continue to look different for some time to come — even after the pandemic ends. Since last March, independent grocery stores in Detroit including Lafayette Foods have become more important than ever for some residents, who already had limited optinos for major grocery chains in the city.

Like their larger competitors, Lafayette Foods, located in Detroit’s historic Lafayette Park neighborhood, has made permanent changes to keep customers and employees safe, including installing acrylic plastic sneeze guards between cashiers and customers. Social distancing practices also remain in place, and employees wear masks and gloves. In the earlier days of COVID-19, employees of Lafayette Foods delivered groceries to customers in and around downtown Detroit, but that came to an end as the pandemic worsened.

Lafayette Foods, located in Detroit’s historic Lafayette Park neighborhood, has made permanent changes to keep customers and employees safe. ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

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FOCUS | ENTREPRENEURSHIP IN THE AGE OF COVID-19

Will breweries keep making hand sanitizer? BY DARLENE A. WHITE | SPECIAL TO CRAIN'S DETROIT BUSINESS

Nathan Hamood sanitizes the indoor seating at a Dessert Oasis cafe. | VALAURIAN WALLER FOR CRAIN’S DETROIT BUSINESS

low 20 customers inside at a time. Hamood, who last year implemented employer-contributed health insurance for employees, said there has been some worry among employees about reopening. The Dessert Oasis owner said he would not reopen if he couldn’t do it safely. The shift to nationwide online sales has helped immensely, he said. Hamood isn’t sure opening at limited capacity will add much to his and other businesses’ bottom lines. “Post-holiday season, it’s certainly a more gruesome time for sales,” Hamood said. “A lot of businesses were good with their holiday sales, but things have dropped off. I think (opening at 25 percent capacity) will still be worth it. Picturing a full cafe now sounds great, but it’s not responsible.” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981

For the past 11 months, Birmingham-based Griffin Claw Brewing Co. has made and bottled its own brand of hand sanitizer. “Our goal was just to help in any way we could,” said Chris Lasher, marketing director for the craft brewer. Last March, Griffin Claw, known for its popular beers such as Norm’s Raggedy-Ass IPA and El Rojo red ale, switched gears and began making hand sanitizer as a way to help the community during the pandemic. (They weren’t alone: Over 30 Michigan distillers produced hand sanitizer in 2020, according to the Distilled Spirits Council.) Initially, the sanitizer was sold only to hospitals and first responders, but now it’s available to the general public. The brewing company also includes a free 2-ounce bottle of sanitizer with every carryout order at their taprooms. “Once we were able to fill some of the demand at hospitals, we opened up sales to other essential businesses and finally to customers in general to purchase more,” Lasher said. Griffin Claw distills old beer to make a 160-proof to 180-proof grain neutral alcohol. It’s then diluted with distilled water, becoming 70 percent alcohol hand sanitizer. It can take the company up to a week and a half to make a 300-gallon batch of hand sanitizer from scratch. It sells the hand sanitizer for $5 for a 4-ounce spray bottle and $35 for a gallon. The entire bar and service staff for Griffin Claw’s taprooms was out of work for months during both of the state’s indoor dining pauses in the spring and the fall, and at times found it difficult to continue operating the brewery. “For us it has been challenging to keep up with all the changing precautions and mandates, but our team is extremely resilient and quick to adapt,” Lasher said. “We’ve thus far been able to adapt to everything thrown our way and actually thrive in some of these areas.” As of Feb. 1, Michigan bars and restaurants can once again allow patrons to dine in (at 25 percent capacity), months after the state halted in-person dining due to a resurgence of COVID-19 cases.

“FOR US IT HAS BEEN CHALLENGING TO KEEP UP WITH ALL THE CHANGING PRECAUTIONS AND MANDATES, BUT OUR TEAM IS EXTREMELY RESILIENT AND QUICK TO ADAPT.” — Chris Lasher, marketing director, Griffin Claw

Griffin Claw brewmaster Dan Rogers. VALAURIAN WALLER FOR CRAIN’S DETROIT BUSINESS

Lasher said the sanitizer hasn’t been incredibly profitable, but it was a lifeline for them to keep their employees working and take the place of lost taproom revenue. “While not as profitable as our normal alcohol products, it definitely helped us work through the pandemic, keep everyone employed, and keep everyone safe and sanitized,” Lahser said. Griffin Claw will continue selling

hand sanitizer as the pandemic eases up. “We don’t have a huge need to produce sanitizer right now due to a healthy supply of current inventory and decrease in demand, but it is definitely not out of the picture to make more sanitizer, if the time comes,” he said. The brewery has made other changes that will stay in place after the pandemic eases.

“Before COVID we really did not do much carryout business,” Lasher said. “Now it makes up almost half of our taproom sales and our efficient model is here to stay. We also added online ordering, since lots of people drink at home now. Plus, our canned product sales went up 100 percent and sales of packaged beer to distribution helped cover the loss in sales of draft beer. I think package will be more relied on moving forward.”

“Originally we offered home delivery for our customers, but with this COVID situation, it’s too dangerous for our employees to travel to apartments and homes,” said Steve Atisha, store manager of Lafayette Foods. “We are trying to protect our employees. They are the reason that this place is still open. Without them we aren’t able to run this business, so we put an end to delivery during the pandemic.” But the family-owned grocery store still offers curbside pickup as a way to give customers a safe shopping experience and to limit in-store traffic — a convenience it will continue to offer post-pandemic. Lafayette Food customers can order their groceries online at LafayetteFoods.com. The grocery store charges a curbside fee of $6.95 and groceries are available for same-day pickup. Atisha said many of the

“OUR CUSTOMERS NO LONGER HAVE TO WALK AROUND THE STORE FOR HOURS EVER AGAIN. ALL THEY NEED TO DO IS PLACE THEIR ORDER ONLINE AND PULL UP TO THE FRONT DOOR AND WE WILL LOAD THEIR GROCERIES IN THE TRUNKS FOR THEM.”

“Curbside pickup is new for us, but we are going to make it a permanent feature for our shoppers,” he said. “Our goal is to provide our community the best shopping experience. Our customers no longer have to walk around the store for hours ever again. All they need to do is place their order online and pull up to the front door and we will load their groceries in the trunks for them.” Since bars and restaurants have been closed during the pandemic and people are spending more time at home, Atisha said he has seen an increase in sales, though he declined to provide numbers. “We have a lot more customers these days buying things (like) milk, eggs, cheese, tissues and even alcohol,” he said. “We are making permanent changes to our store, but it’s for the better, and that’s to save lives,” said Atisha.

— Steve Atisha, store manager of Lafayette Foods

store’s customers are over age 60 — a segment of the population that is more vulnerable to the coronavirus. He wants to make shopping safe and convenient for them.

FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 13

FINANCE

Detroit works to boost PPP loan participation for small businesses Business owners can request help in applying for round 2 funds through March 31 BY NICK MANES AND JASON DAVIS

Demand for Paycheck Protection Program loans in this second iteration continues to lag behind where things stood last spring as the forgivable loan program for small businesses came into being, including in Detroit. The most recent iteration of the COVID-19 relief program for small businesses rolled out widely in late January with a pot of $284 billion. Through Feb. 7, the U.S. Small Business Administration reports that nearly 1.3 million loans have been approved totaling $100.9 billion. The initial tranche of money in April was $349 billion, which was depleted within two weeks. Much of the money in the initial tranche went to larger chain-type businesses, prompting criticism. As Crain’s has previously reported, there are myriad reasons for diminished demand for PPP loans this time around. Among them are now much narrower shutdowns than last spring, leading to increased economic stability for many small businesses. Also, legislative mandates in the newest round of loans require businesses to document at least a 25 percent decline in revenue from one quarter to another last year. The most recent data from the SBA shows that as of last week a total of 36,671 Michigan businesses had

GETTY IMAGES/STOCKPHOTO

been approved for nearly $3.7 billion in PPP loans so far this year. Just $7.5 billion in this latest round has so far gone to borrowers seeking their first PPP loan, according to SBA data.

Push to boost PPP numbers in Detroit The relatively sluggish demand for loans this time around also appears

to be true for small businesses in Detroit, according to Kai Bowman, vice president of Detroit Means Business, a city-run group that provides small businesses with tools and support to navigate their way through the pandemic. While specific numbers for Detroit for this latest round of dollars were not immediately available, Bowman said Tuesday that the numbers are trending lower than the roughly $647

million in PPP loans given to 5,412 Detroit businesses in the first round of payouts, with the average loan being about $120,000. Pierre Batton, Detroit Economic Growth Corp. vice president, small business services, on Wednesday said the numbers add up to fewer than one in 10 of all Detroit businesses that received round one PPP loan funds. Batton at this point doesn’t believe as many Detroit businesses are seeking the funds the second time around. “Based on the feedback we’re hearing from businesses in the community today, we’re not on track to achieve even those numbers,” Batton said. “With an emphasis on womenand minority-owned businesses in low-income neighborhoods, we should be hearing that everyone is preparing an application. “Since we’re not, we’re doing what we can to facilitate participation by Detroit businesses and help (business owners) understand how (the second round of loans) has been simplified and made more flexible in using loan dollars, and demystify the PPP process and engage in conversations with business owners about the true benefits of this program.” Business owners can apply for help in applying for round 2 funds through March 31 at detroitmeansbusiness.org. Loans of up to $2 million are available at 1 percent interest

Bowman

Batton

over 30 years. The loans can be forgiven if at least 60 percent of the funds are used to cover payroll expenses. “Whether you were successful the first time around or you opted out, we want to make sure you’re taking advantage this time around,” Bowman said. “We’re looking to get $1 billion for the city, but we have to get people to apply.” In an effort to meet that goal, Detroit Means Business has trained MBA students who are available for consultations and one-on-one financial documentation preparation assistance, along with a legal clinic to help determine loan forgiveness eligibility. “There’s concern about taking on more debt,” Bowman said, “but if the loans are spent on the necessary things, they will be forgiven.” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981 Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

ENERGY

DTE offers gas customers program to save forests, reduce carbon footprint BY JAY GREENE

FIRST-CLASS BANKING is CLOSER THAN EVER Waterford Bank, N.A. Troy Office

When our area businesses felt the negative impact from COVID-19 in 2020, our bankers stepped up to help fund over $197 million loans to our communities throughout Northwest Ohio and Southeast Michigan through the Small Business Administration’s Paycheck Protection Program. Now with the launch of PPP 2021, we’re proud to once again lend our financial expertise to help communities survive these challenging times, with a dedication and agility that is unmatched in the marketplaces we serve. TROY OFFICE: 5600 New King Dr., Suite 150 Troy, MI 48098 Member FDIC. Equal Housing Lender. All loans subject to credit approval. NMLS# 520256

WATERFORDBANKNA .COM PHONE: 248-886-0086 | TOLL-FREE: 866-707-2871

14 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

DTE Energy Co. has launched a new program that allows residential and small business gas customers in Michigan to purchase renewable biogas from landfill emissions and save forests by offsetting greenhouse gas emissions. CleanVision Natural Gas Balance, the DTE program that the company says is first in the nation, offers customers a way to offset 25 percent to 100 percent of greenhouse gas emissions from an average home’s natural gas use. The program is part of DTE Energy’s 2050 net zero commitment and a way customers can reduce their carbon footprint by protecting Michigan forests that naturally absorb greenhouse gases that contribute to global warming and climate change. “When we announced our 2050 net zero emissions commitment last year, we promised our customers that they could join us on this journey,” said Matthew Paul, president and chief operating officer of DTE Gas, in a statement. “Natural Gas Balance is the fulfillment of that promise and empowers both residential and small business customers to work with us to make Michigan a cleaner, healthier place to live.” It works like this: DTE gas customers pay slightly higher rates — from $4 a month to $16 per month — to participate in one of four levels of the program. DTE, in turn, uses the additional revenue to purchase the more expensive

renewable natural gas, which can cost four to 10 times that of traditional natural gas. The renewable gas is purchased from operators that collect landfill emissions and wasteBrudzynski water treatment plant gas byproducts. DTE then injects and delivers the renewable gas to customers in pipes along with traditional natural gas. Along with other DTE energy efficiency programs, DTE said it can reduce annual greenhouse gas emissions by more than 6 million metric tons by 2050 — the equivalent of offsetting natural gas emissions of 1 million homes or taking 1.3 million cars off the road annually. Grand Rapids-based Madcap Coffee, a specialty roaster with locations in Detroit and Grand Rapids, has joined the program as the first Natural Gas Balance customer. It is offering the first 200 customers in the program a $10 Madcap gift card at dteenergy.com/ naturalgasbalance. Trevor Corlett, founder and co-owner of Madcap Coffee, has been looking for ways to lessen his company’s carbon footprint. Recent industry data has shown that coffeehouses have the highest level of carbon emissions in the production chain from seed to cup. “As a company, we believe that Mad-

cap Coffee has a responsibility to fight poverty and climate change,” said Corlett in a statement. “Joining Natural Gas Balance allows us to offset our emissions so our customers can feel even better that the coffee they’re enjoying is reflective of our shared commitment to a more sustainable Michigan and coffee industry.”

Forest preservation Trees are a vital resource in helping to remove harmful greenhouse gases from air and in creating oxygen. DTE uses some of the program revenue to purchase forest carbon offsets through a project called Greenleaf Improved Forestry Management Project. Greenleaf is managed by Blue Source LLC, an environmental technology company. Greenleaf’s forests, most of which are commercially owned, are spread across 14 counties in the Upper Peninsula covering 24,000 acres. Landowners generate revenue from various environmental projects that commits them to saving trees. Dan Brudzynski, DTE’s vice president of gas sales and supply, said once the program reaches its 10-year enrollment goal, participants could be protecting more than 25,000 acres of Michigan forests and will have reduced greenhouse gas emissions by 1 million metric tons of carbon emissions. Contact: jgreene@crain.com; (313) 446-0325; @jaybgreene

3:30 p.m. | March 10 Join us as we dive into the nuances of the state’s largest mergers and acquisitions in a year like no other. Hear from Mina Sooch, the veteran biotech entrepreneur who led a reverse merger for her Ocuphire Pharma last year. The deal was one of several involving reverse mergers or SPACs during 2020. Learn from Lineage Logistics CEO Greg Lehmkuhl, who led his company through an aggressive growth strategy that included more than 50 acquisitions over the past five years. Also: M&A advisors Raj Kothari, Managing Director of Cascade Partners LLC and Laura Marcero, Managing Director of Huron Consulting Group, offer an outlook of the activity forecast for this coming year. FEATURING A LIVE Q&A WITH PANELISTS

Dustin Walsh

Senior reporter Crain’s Detroit Business

Greg Lehmkuhl CEO Lineage Logistics

Rajesh U. Kothari, CFA Managing Director Cascade Partners LLC

Laura Marcero

Managing Director, Huron Consulting Group

Mina Sooch

CEO and Founder, Ocuphire Pharma Founder and General Partner, Apjohn Ventures Fund

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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 ADVERTISING / PR / MARKETING

HEALTH CARE

LAW

NONPROFIT

Siren

Oakland Nursing Center

Altior Law P.C.

The strategic communication firm Siren in Royal Oak announces that Emmy Award winning journalist Jorge Avellan has joined their team as Media and Business Development Specialist. With over 15 years of experience as a former TV and radio news reporter in metro Detroit, Jorge is using his journalism expertise to help clients share their stories on media outlets. He plays an important role in bringing new clients to Siren. Jorge also provides services in Spanish. Email jorge@sirenstrategy.co.

Oakland Nursing Center is pleased to announce the promotion of Jennifer Cordell to our new Nursing Home Administrator. Jennifer started working for our organization in 2015 as Surgeons Choice Medical Center’s Quality & Infection Control Manager and has been an invaluable member of our team. She has demonstrated her leadership skills and wide range of healthcare knowledge over the course of the last 6 years which will continue into her new management role.

Matthew Smith has joined the shareholder group of commercial litigation firm Altior Law. Matt is a SuperLawyers Rising Star with over a decade of commercial and securities litigation. He has represented clients in all stages of litigation through trial and appeal across a variety of matters in state and federal court. His practice includes contract, fraud, securities litigation/arbitration, and business litigation, including intra-company disputes between owners, officers, and directors.

The McKinney Foundation, Inc.

INSURANCE / FINANCIAL SERVICES

LAW

Schechter

Sue Ellen Eisenberg & Associates, P.C.

HEALTH CARE

Schechter, an independent investment advisory, private capital, and advanced design life insurance firm, has announced the addition of Gregg A. Michael as Managing Director, Institutional Partnerships. Michael, a seasoned life insurance executive with over 30 years of experience & regarded as an industry leader, brings a proven track record of market expansion working for life insurance companies, including Symetra, Principal Financial Group, Lincoln Financial Group, and Aetna Life & Annuity.

Comcas Corp s offer ng $1 m on n gran s or B ack- nd genous- and peop e o co or-owned sma bus nesses n De ro Ham ramck and H ghand Park The bus nesses can app y or $10 000 each To be e g b e he bus nesses mus have been open or a eas hree years and have a sma emp oyee base be ween 1 and 25 App ca ons w be open March 1-14 a Comcas R SE com and awards w be awarded n May De ro s among five c es where he Ph ade ph a-based e ecommun caons company p ans o g ve ou a o a o $5 m on o 100 bus nesses per c y The o hers are A an a Ch cago Houson and Ph ade ph a accord ng o a news re ease

THE BUSINESSES CAN APPLY FOR $10,000 EACH. Axiom Advisory Group TO BE ELIGIBLE, THE After graduating from BUSINESSES MUST HAVE the University of Michigan and BEEN OPEN FOR AT LEAST completing the Real Why not? THREE YEARS AND HAVE A Estate Development Graduate Certificate SMALL EMPLOYEE BASE: from theCe Taubman College of Success ebrate your BETWEEN 1 AND 25. Architecture and Urban

REAL ESTATE

PROMOTE.

Prominent attorney Kerry Cahill became a partner at Bloomfield Hills-based employment law firm Sue Ellen Eisenberg & Associates, P.C., effective January 1, 2021. Cahill joined Sue Ellen Eisenberg & Associates, P.C. in 2013 and specializes in wrongful termination, discrimination and harassment, civil rights disputes, as well as the negotiation of executive contracts and separation agreements. Cahill also distinguishes herself with a commitment to managementside clients.

w th Repr nts & Recogn t on

Planning, Ben Lamantia joins The money comes rom he Comcas Products! Axiom Advisory Group as R SE nves men Fund par o a proa Commercial Real Estate gram Comcas s ar ed n Oc ober ha Advisor. His areas of expertise arge s non-wh e-owned bus nesses s rugg ng dur ng he COV D-19 paninclude Transaction dem c Comcas a so gave $2 m on Management, Financial Analysis, across he five c es o oca groups ha and Process Optimization. 40 can reach ou o hese bus nesses and 40 prov de o her ass s ance ke ra n ng T he re ease sa d The De ro organ zaons are En repreneur academy Bu d ns u e Sma bus ness and ech hub TechTown De ro En repreneur ecosys em bu der Venure Ca a ys s Sma bus ness deve opmen nonprofi Grand nnova on Comcas R SE (Represen a on nves men S reng h and EmpowerCelebrate your Success men ) s par o a arger $100 m on with Reprints & Recognition d vers y equ y and nc us on n a ve ha Comcas aunched as summer Products! Comcas wh ch has more han 1 Ce ebrate your Success m on res den a and commerc a w th Repr nts & Recogn t on cus omers n Sou heas M ch gan a so Products! announced a e as mon h ha s ex40 pand ng s program ha es ab shed 20 Dandridge Floyd, 37 40 W -F ho spo s a nonprofi commun y T cen ers n De ro o s o her serv ce areas n M ch gan The “L Zones” prov de on-s e 40 ass s ance o s uden s a end ng 40 schoo v r ua y wh e ncreas ng d gT Laura Picariello a access or am es and adu s Repr n s Sa es Manager seek ng obs hea h care n orma on and pub c ass s ance Phone (732) 723-0569 Those es ab shed n De ro over Fax (888) 299-2205 he pas ew mon hs have exceeded Ema p car e o@cra n com he number Comcas announced when aunched he program n he a

Schechter Schechter Investment Advisors, an independent registered investment advisor and private capital firm, has announced the addition of Alan Slaughter as Director of Investment Services. Slaughter, with over 14 years of experience in family office service and asset management, has held multiple strategic and operational roles with investment advisory firms in the Boston area, including Via Global Advisors LLC, Merrill Lynch, Lake Street Advisors LLC, and Athena Capital Advisors.

PROMOTE.

Why not?

September 2, 2019 | crainsdetroit.com

UNDER

Assistant Superintendent of Human Relations and Labor Relations, Oakland Schools

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

October 30, 2017 | crainsdetroit.com

UBS to open downtown Detroit office

By Annalise Frank

October 30, 2017 | crainsdetroit.com

• UBS plans to open wealth management office in Detroit in mid-2018 • Office to include 6,000-squareBy Annalise Frank foot space30,nonprofits and civic October 2017 | crainsdetroit.com groups • UBS plans to open wealthcan use free of charge • Bedrock-owned buildings office in Detroit “I’m impacting lives now. management I know undergoing renovations in mid-2018

UBS to open downtown Detroit office

6,000-squarethe effect food insecurity• Office had onto includeUBS plans to open an office in downfoot space nonprofits and civic town Detroit in mid-2018, the company Annalise Frank growing groups meByand my peers up, andcan useannounced free of charge Monday. • Bedrock-owned buildings

Bedrock LLC

INSURANCE / FINANCIAL SERVICES

UBS Group AG’s U.S. and Canadian UBSan plans to open wealth this•was opportunity toundergoing make a renovations wealth management business, New Jer-

management office in Detroit

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

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

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

Surgeons Choice Medical Center is pleased to announce the promotion of Stephanie Prechowski from Director of Nursing and Surgical Services to our new Chief Operating Officer. Stephanie started working for our organization in 2017 and has been a trailblazer member of our team. She has demonstrated her extensive knowledge in healthcare over the course of the last 4 years. Stephanie will work to support our organization’s vision, strategy and continue to cultivate our positive culture here at SCMC.

BY ANNAL SE FRANK

PROMOTE.

HEALTH CARE

Surgeons Choice Medical Center

Comcast to give grants to 100 Detroit BIPOC-owned businesses

Bedrock LLC

Surgeons Choice Medical Center is pleased to announce the promotion of Gordon Meyer from Director of Human Resources to our new Chief Administrative Officer. Gordon started working for our organization in 2005 and has been a vital member of our team. Gordon has demonstrated his pioneering skills over the course of the last 16 years with admirable employee relations and implementation of both clinical and operational programs which will continue into his new management role.

PHOTOGRAPH BY JACOB LEWKOW FOR CRAIN’S

Surgeons Choice Medical Center

Tiah E. McKinney, Ph.D. has been appointed to the Detroit Health Department’s Public Health Advisory Commission (PHAC). The 11-member commission advises the Health Department on policy matters addressing health concerns. In April, Dr. McKinney presents her current health intervention policy research at the 2021 American Educational Research Association’s Annual Conference. McKinney is founder and executive director of Detroit-based nonprofit, The McKinney Foundation, established in 2010.

FINANCE

Albert Berriz talks workforce housing, Ann Arbor and Cuba

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

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

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

II don’ don’t think it’s overblown to use the afford word “crisis” for Ann Arbor’s afford-

able housing situation. Give us your perspective on how the city should go about addressing it. I think it’s a supply issue. The reality is that Ann Arbor has not really welcomed solutions from the private sector and has only sought solutions from the public housing side or the community nonprofit side. And both of those groups, while I think they’re very well intentioned, don’t have the capital and the expertise to resolve the problem at the scale it’s needed. To put it in perspective, you know, the Washtenaw County study that came out had a need of about 3,000 units. And if you look at the cost per unit today, and let’s say $250,000 or $300,000 per unit to build a brand new unit today, you know, it’s an $800 million to a $1 billion problem, so I don’t think that’s a problem that gets resolved on the public side or on the community nonprofit side. You know, they have to go to places to seek capital and there just isn’t enough capital, nor do they have enough resources or expertise to resolve the problems. So the city I think, by and large, has attempted to do this in those ways because they really haven’t welcomed the private side. And there is a lot of expertise and there’s a lot of capital that could do this, from the private side perspective. It just hasn’t been the way that Ann Arbor operates, so you see what has happened in Ann Arbor year over year, decade over decade is there’s a lot of conversations about affordable housing, but there’s no solutions. You were talking a little bit earlier about how McKinley got out of retail and office. What led to that decision and how has that reflected or shaped your business strategy? It was a risk profile that we were just not comfortable with. We are a generational business and so we look at our assets in

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

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

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

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

Albert Berriz, CEO and managing member, McKinley Inc.

Con ac a rank@cra n com (313) 446 0416 @anna se_ rank 16 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

Laura Picariello

Reprints Sales Manager Phone: (732) 723-0569

February 15, 2021

PAWN

CLASSIFIEDS

From Page 3

American Jewelry and Loan saw a 5 percent increase in revenue last year, Seth Gold said. Business during the last year has been interesting, he said, with fewer items being pawned but an increase in retail sales as customers who got federal stimulus funds were ready to spend it during the pandemic. The redemption rate nationally is at between 80 percent and 90 percent, Seth Gold said. Those numbers hold true in the Detroit market, too.

To place your listing, contact Suzanne Janik at 313-446-0455 / sjanik@crain.com or, for more information, visit our website at: www.crainsdetroit.com/classifieds

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Sales up, loans down That trend is being seen throughout the industry. A report published by the National Pawnbrokers Association found that pawnbroker sales have increased during the pandemic, while the number of loan transactions has fallen. The pawnbroker industry, annually a $3 billion business, remains a thriving one. There are about 10,000 pawn shops in the United States that employ about 35,000 people. Mark Aubrey, owner of Motor City Pawn Brokers, which has a handful of locations in metro Detroit, called 2020 an “unorthodox” year for the pawn business. Aubrey, who said Motor City Pawn Brokers saw a 20 percent increase in revenue last year, said the pandemic — which brought stimulus funds and increased unemployment benefits — messed with the business’ cycle. “Normally throughout the year, up until Christmas, we see mediocre sales on the retail side, so we concentrate on lending most of the year,” Aubrey said. “Usually, during tax season, we see high retail sales volume. But with everything that happened last year, it kind of flipped. We didn’t

SHIRKEY

From Page 8

The context of Shirkey’s Feb. 3 meeting with three Hillsdale County GOP activists is they met him at a diner to tell Shirkey why they planned to censure him the next day. His offense? Shirkey supported the Michigan State Capitol Commission’s ban on open-carrying weapons in the state Capitol. These constituents also think Shirkey didn’t stand up to Whitmer enough on coronavirus shutdowns, despite pursuing lawsuits and a ballot campaign to strip her of executive powers. “Carry your long gun in now and test it,” Shirkey told one of the Hillsdale County men, encouraging him to show up to the Capitol armed as a means of challenging the legality of the commission’s ban. Shirkey repeatedly sounded indignant throughout the meeting — which any politician with common sense would not have taken — as he tried to placate three constituents to whom he owes nothing politically (he’s term-limited in two years). “We spanked her hard on the budget. Spanked her hard on appointments,” Shirkey said of how his caucus stood up to the female governor. “We did everything we could constitutionally do.” Shirkey’s “spanking” of Whitmer on political appointments includes blocking the appointment of a director for the state’s Office of Children’s Ombudsman, who is charged with investigating when a child dies while under state care. That’s what he’s bragging about.

CRAIN’S DETROIT BUSINESS

Advertising Section

Test Engineer: 1 Pos; Novi, MI;

In addition to pawnbroker service, American Jewelry and Loan also has a retail component. The retail side of business outperformed the pawn side in 2020. | TANNER FRIEDMAN

have a lot of people getting loans. It was mostly people redeeming items and buying retail items.” In 2019, American Jewelry and Loan launched an online portal that allows customers to track their loans and payment. Use of that service grew by 40 percent in 2020, according to Seth Gold. Online sales are up 30 percent from 2019, he said. Because most customers have taken their items out of pawn, inventory is down, Les Gold said, particularly electronics. Electronics inventory is being replenished through purchases at closeout sales, Seth Gold said. Aubrey said Motor City Pawn Brokers’ shelves were bare for a short time in 2020 because its items are available only in the store. Utica-based Five Star Pawn Brokers reached out to other pawn shops and brokers to remedy its low inventory, manager Evan VanFleteren said.

Revenues remained consistent with previous years, he said, while gun sales gave his shop a boost. At one point last year, he said, the number of background checks for firearms was quadruple what it had been in previous years. The most common items brought into the pawn businesses are jewelry and electronics, Seth Gold said. The most sought-after items include televisions, video game systems and computer tablets, mostly because most people have been home for the past year. Expanding during a pandemic doesn’t worry Les Gold. “Business is going to get better,” he said. “Business will be back again strong in the next couple of years. We want to make sure we’re prepared for the economic turn.”

“I SAID SOME THINGS IN A VIDEOED CONVERSATION THAT ARE NOT FITTING FOR A ROLE I AM PRIVILEGED TO SERVE.”

“It’s disappointing and strange,” Whitmer told me. “But I’m not going to let it consume any more of my energy than that.” When asked if she could still have a meaningful working relationship with Shirkey, Whitmer sighed and then chuckled. “I think it’s challenging,” she said. “But you know what, I’m going to continue to try to extend an olive branch, find common ground around the fundamentals and stay focused on what really matters.” Shirkey has had two years to show some semblance of class and respect for the state’s second female governor. He’s shown no ability to work with a female CEO, leaving the state Capitol mired in the kind of governing dysfunction that business leaders shunned after the “Lost Decade.” His past admissions that he’s not very good at politics are no excuse for making sexist remarks about Whitmer instead of trying to compete with her on ideas and leadership. Shirkey’s become an embarrassment to the institution of the Michigan Legislature — the place that produced the likes of Paul Hillegonds, Dianne Byrum and Joe Schwarz and the late Shirley Johnson, Morris Hood Jr., Curtis Hertel Sr. and Alma Stallworth. Those people — Republicans and Democrats alike — were true leaders, dedicated public servants who left this state in a better place than they found it. All Mike Shirkey is leaving this state as Senate majority leader is a path of destructive politics.

— Senate Majority Leader Mike Shirkey

Shirkey’s office issued a statement Tuesday evening attributed to the Senate leader, claiming that he’s sorry for his “insensitive comments.” “I said some things in a videoed conversation that are not fitting for the role I am privileged to serve,” the statement said. “I own that. I have many flaws. Being passionate coupled with an occasional lapse in restraint of tongue are at least two of them. I regret the words I chose and I apologize for my insensitive comments.” This isn’t the first time Shirkey has said what he really thinks of Whitmer in private — or in Hillsdale County — and then quickly apologized. While speaking to a group of Hillsdale College students in November 2019, Shirkey said Whitmer and her fellow Democrats are “on the batshit crazy spectrum.” He later acknowledged his “offensive” comment “was disrespectful and unnecessary.” Whitmer, who doesn’t seem fazed by Shirkey’s obvious lack of respect for her, sent him a bat cake for his birthday a few weeks later. In an interview Tuesday evening with Crain’s, the governor seemed at a loss about Shirkey’s public and private comments about her lately.

Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981

Analyz req & test case on specs. trace of req test cases. Dev automation FW, perform test on Infotainment P’forms & write test scri to test inter & cust specs both unit & sys level info feature. validate/qualifying SW mult infotainment prod for var car manuf. Perf sys valid on infot modules both vehicle & bench setups Vehicle interface, M’media, BT-WiFi & connect feat. Phone Proj like Carplay & Android Auto. test setup func test & automation test Infot mod. Create simulation using CAN tools replicate vehicle envi. infotainment safety feat test critical chimes, collision & emergency call using simulation/tools. Cre simulation mod & test ADAS feat like Collision warn, Lane sens, Auto-park assist, traffic alert. defects, verify fixed/resolved issues. Iden test scen based on func & busn req, cre & maintain test case. Req: Bachelor’s deg (or foreign Equal) in CompSci, Eng, IT, Electro/Telecom / rel & 3 Yrs of exp in IT. Alt: Master’s deg (or foreign Equal) CompSci, Eng, IT, Electro/Telecom / rel & 1 Yr of exp in IT. Exp in func & nonfunct SW test, SW life cyc, test meth. CAN prot, CAN anal tool & CAPL script. Android P’form, Android Apps test. Analy prod req from cust. automation with CAN, infot test automation, script lang. Program with Python & C#. Unittest of APIs. Test case dev, test exec, test mgmt, test status repor, defect mgmt tools, log tools. MS Office, Android test, Wi-Fi, BT, CAN, Neo VI, Vehicle Spy, CANoe. Apply: send CV’s to Harman Connected Services, C/O Mahesh G M; (Job Code - TE-HCS-M-16); to 2002 156th Ave NE Suite 200 Bellevue, WA 98007. POSITIONS AVAILABLE

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Molex, LLC, in Grand Blanc, MI, seeks a Resident Engineer to plan and design electro-mechanical equipment and automation systems. Up to 80% domestic travel to client sites within normal commuting distance req’d. Send resume to: mlxjobs@ kochind.com.

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No of Position: 1, Novi, MI; U’stand cust concepts, req & design Specs, key I’face inter/exter cust & global tech team. Specify architecture for complex embedded audio sys & dev incl Risk/Issue anal & mitigation/reso plan. guide tech & proj issue & continuous integ & monthly sw rel. Linux & Android Arch, Android FW layer & Internals of OS & App dev using C / C++ & Java. Embed sys, Intel, IM6, IMX8 processor, CAN/Vehicle diag & Audio proces in Automotive Amplifier. dev of arch design for auto audio module mult HW interface as head unit, amplifier, ARM. Dev of comp audio modules core dev & control path b/w amplifier & Head unit. Req: Bach’s deg (or Foreign Equal) in Comp, Electro, Electri /rel with 6 Yrs exp in IT Or Master deg (or Foreign Equal) in Comp, Electro, Electri /rel with 4 Yrs exp in IT Exp: embed C,C++,QNX,Linux,Android,CAN,Vehicle diagnostics,UDS using ISO 14229-1, SW download using CAN. debug & anal using CS+, Oscilloscope, eclipse, GDB tools & logic anal & Audio tools like Audacity, Audio Mulch. audio amp dev & audio proces incl commu from head-unit. Android Architecture, Android F’work layer & Internals of OS & App dev in Android. SW dev proc ASPICE compliance Apply: Send CV’s to Harman Connected Services, C/O Mahesh GM, (job IDPSE-HCS-M-11) 2002 156th Ave NE suite 200 Bellevue WA 98007. POSITIONS AVAILABLE

Harman Connected Services: Software Engineer; Job ID SE-HSC-M-20: 01 Position; Location: Novi, MI:

Dev SW component C++ & Java of high standard & fine qual. Analyze prod & customer req doc specs & write SW code to implement lowest defects. Test SW code at unit & system level ensure req met & expected result achieved. Analyze exis SW code add new features, modifications, fix defects & integrate multiple operating sys like Android, QNX, Linux etc. ownership of design modules, mentor juniors. Analyze & debug using standard scoping tools. Req: Bachelor’s deg (or Foreign Equival) in CompSci, InfoTech, Electro/Electri Eng or rel with 3 yrs of exp in IT Industry. Exp: 3 yrs exp in SW dev in C, C++ & Java; 2 yrs SW design exp using object-oriented prin. 2 yrs Automotive Info SW dev exp in Android/ Linux/QNX. Exp adding audio/multimedia feat to embedded p’form. peripheral commu protocols I2C,SPI,UART,GPIO. Automotive CAN Protocol, Git, Android Debug Bridge, GDB, Android Studio, Visual Studio, analyz use cases, defects with HW scope, signal generator, oscilloscope. Android FW & Android HAL dev. Automotive Radio Tech AM/FM/DAB/SXM. Apply: send CV’s to Harman Connected Services, C/O Mahesh GM; (Job Code SE-HSC-M-20); to 2002 156th Ave NE Ste 200, Bellevue, WA 98007.

@CRAINSDETROIT

Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 17

P017_CD_20210215.indd 17

2/12/21 5:10 PM

BUDGET

From Page 3

The governor called the proposed investments a “game changer” for Michigan’s workforce, which has seen a disproportionate number of women leave during the pandemic to care for children at home. “We know the impact that COVID has had on women and working moms,” Whitmer said Thursday during a video conference call with reporters. “They’ve borne the brunt of this economic pain during this pandemic. ... It’s been called a she-cession for good reason.” To fund this significant expansion of day care, Whitmer proposes spreading the cost over three fiscal years, starting with this current fiscal year that ends Sept. 30. The three-year cost is estimated at $157.4 million, according to the State Budget Office. Family copays would be waived, adding $6.5 million annually to the cost of the program, according to the State Budget Office. But some families would still have to pay for the difference between the state’s set provider rates and the weekly rates a day care center normally charges, Massaron said. “It’s not free (day care),” he said. Whitmer’s proposal relies upon $292.1 million in federal funds from the COVID aid bill Congress passed in December that were designated to aid the struggling child care industry. Boosting provider payments by 10 percent and ensuring they get paid in the event of future coronavirus outbreaks will cost $123.6 million over three years. The changes would stabilize the day care industry amid rapid turn-

“WE KNOW THE IMPACT THAT COVID HAS HAD ON WOMEN AND WORKING MOMS. THEY’VE BORNE THE BRUNT OF THIS ECONOMIC PAIN DURING THIS PANDEMIC. ... IT’S BEEN CALLED A SHECESSION FOR GOOD REASON.” — Michigan Gov. Gretchen Whitmer.

over, said Erica Willard, executive director of the Michigan Association for the Education of Young Children, a Lansing advocacy organization whose members include day care providers. “Anything we can do to stabilize

FUND

From Page 1

“And seeing a business as more than just a financial transaction,” DeVos said. “Seeing it for the customers, the employees, the communities that are part of every business.” Penske, the billionaire chairman and CEO of Bloomfield Hills-based Penske Automotive Group Inc., said in a statement that the nascent fund helps further bridge gaps between Southeast Michigan and the rest of the state, while creating new opportunities for business owners. “The Michigan Opportunity Fund presents the unique opportunity for local investors to invest directly in the future of our great state, supporting its family-owned businesses and the communities in which they operate — and at a particularly pivotal moment,” Penske said. “It is an honor to partner with the DeVos family and other Michigan investors in this endeavor, and I look forward to the economic vitality the fund will usher in across the state, from Detroit to Grand Rapids and all points in between.”

Coming together Investments for the group will be run by the family office of DeVos, Continuum Ventures, as well as private equity group Auxo Investment Partners. The Michigan Opportunity Fund will be Auxo’s second fund, and the Grand Rapids PE firm has just more than $110 million in assets under management, according to Jeff Helminski, co-founder and managing partner of Auxo. The fund’s backers declined to disclose a projected dollar amount for

DeVos

Penske

the initial rollout of the Michigan-focused fund, with DeVos saying the goal at this time stands around ensuring the fund has a broad array of investors representing different areas of the state. Helminski said he expects somewhere between 12 and 20 investments over a three- to fouryear investment period with initial closings possibly occurring in the coming months. Key metrics for investment will be founder-led and family-owned Michigan-based companies with revenue of between $10 million and $200 million, and cash flow of $2 million to $20 million. The fund also aims to offer a diverse range of capital to businesses with which it engages, including majority control equity, minority equity, mezzanine capital, as well as distressed and subordinated debt. “We’ve created flexibility in our documents to play across the capital stack,” said Mike Cazer, the CEO of Continuum Ventures, the DeVos family office backing the fund. “We want to meet the Michigan market where it is.”

Something new The model being offered by the Michigan Opportunity Fund is rare when compared to more traditional private equity investment because of

the industry is good for the field, it’s good for programs, which ultimately is good for families in terms of the consistency of the care their kids are able to receive while they’re working,” Willard said. Sen. Rosemary Bayer, D-Beverly Hills, said the governor’s proposal strikes a balance between increasing child care enrollment and helping the businesses recover. “The providers have businesses as well,” Bayer said. “We have to take care of both sides.”

What else Whitmer’s budget plan contained a variety of business-specific proposals. Here are some of the highlights: ` The governor’s budget calls for making a $2-an-hour hazard pay premium for direct care workers permanent. Home health care companies have advocated for an increase in the demand by institutional investors for quick returns, according to Sam Valenti, a veteran Michigan investor and adviser to Helminski’s Auxo fund. “It’s never been done because it doesn’t seem to have a terminus,” Valenti said of the patient capital model that’s baked in the Michigan Opportunity Fund. “The first place you would call from this fund is not the state of Michigan pension plan.” Valenti and others point out that family investment offices, such as DeVos’ Continuum Ventures, which is leading the investing charge for the Michigan Opportunity Fund, are well-equipped for such models. “I just think family offices have been at the forefront — and this is going back five or six years — they’re also the ones that are willing to experiment the most with structures and how things get funded,” said

Medicaid-funded direct care provider rates to help retain workers in a field that normally pays about $12 an hour. The current pandemic hazard pay for direct care workers is set to expire Feb. 28. To extend it for this fiscal year, Whitmer is proposing spending $43 million in general fund tax dollars ($110 million overall with federal match funding) and $121.4 million from the general fund in fiscal year 2022 ($360 million overall with federal funds). ` Road construction and engineering firms in the bridge-building business could see more work coming from the Michigan Department of Transportation if Whitmer’s budget plan is approved. She’s proposing a onetime $300 million program to replace or repair 120 bridges deemed structurally unsafe across the state. MDOT officials plan to bundle bridge design-build projects together for bidding purposes. “If additional federal stimulus or infrastructure funds become available, MDOT is prepared to quickly scale the program to include additional bridges,” according to a briefing memo for lawmakers. ` In the Department of Labor and Economic Opportunity’s budget, there’s $25 million to fund the state’s Mobility Futures initiative, a collaboration of public and private entities focused on challenges surrounding the deployment of autonomous and connected vehicles. ` The labor department budget proposal also calls for $3 million for skilled trades pre-apprenticeship and apprenticeship programs and a $15 million one-time increase in the Going Pro Talent Fund program, which provides grants to employers that help employees earn industry-recognized certificates and cre-

dentials and boost retention. ` The governor’s budget calls for pumping $180 million in one-time surplus tax funds into free college tuition programs in order to boost enrollment and worker retraining efforts to help the state emerge from the coronavirus-related economic downturn. Whitmer wants to add $120 million for the newly launched Michigan Reconnect program for adults 25 years or older to get a tuition-free associate degree or industry certificate. She also wants to add $60 million to a $24 million fund for her Futures for Frontliners program that covers gaps in financial aid for pandemic essential workers who want to gain new job skills. Both worker retraining programs have been backed by the Detroit Regional Chamber, the Small Business Association of Michigan and other business lobby groups. ` Whitmer’s funding proposal for cities braces for what’s expected to be an influx of nonresident workers in Detroit, Grand Rapids, Pontiac and other cities with an income tax claiming taxable income exemptions in 2020 and seeking refunds for spending months working at home during the coronavirus pandemic. The governor is proposing a one-time payment of $70 million to 24 cities with a municipal tax on individual and business income. The largest single-city grant of $25 million would go to Detroit, followed by $17 million for Grand Rapids, $6 million for Lansing, $2.8 million for Battle Creek, $2.5 million for Flint and $2.3 million for Pontiac, according to the State Budget Office.

port from PE trade group American Investment Council, shows that with the exception of a slight drop-off from 2014 to 2015, private equity deal value has grown every year for the past decade, hitting $768 billion in 2019. It does appear deal value will take a substantial hit in 2020. The Pitchbook data shows that through the third quarter of last year, total deal value stood at about $360 billion, with a significant drop-off occurring from the first quarter to the second quarter as the coronavirus pandemic took hold.

nesses are sure to be among the fund’s portfolio. Available data varies, but multiple studies have found that a large number of family-owned businesses — nearly 80 percent, according to a 2014 report from the Family Owned Business Institute at Grand Valley State University — have not begun planning for succession. The owners of those types of companies are looking for more localized options than strategic buyers they don’t know or out-of-state PE buyers, according to Helminski with Auxo. “They would prefer an option in state that has a different level of familiarity and comfort and shared value systems, and usually one to two degrees of separation between people that they know,” Helminski said. “That would be more appealing to them, but it just doesn’t really exist today.” The fund’s backers say they’re largely industry-agnostic, but the state’s key sectors — manufacturing, transportation and logistics, agriculture and health care — are sure to be chief among the areas targeted for investment. While the fund still remains in its infant stages, DeVos said he can look two years down the road and see the concept having begun to take hold and have a positive impact on the state’s business community. “So you hope in two years you’re looking back saying, ‘Hey, we stayed on track, we stayed true to our values,’” DeVos said, adding that by that time the group will have “made the operational adjustments we needed to make, because nothing is ever static or simple as it seems.”

Keeping it in the family Beyond some of the aforementioned issues the Michigan Opportunity Fund principals take with the broader state of the private equity

“WE’VE CREATED FLEXIBILITY IN OUR DOCUMENTS TO PLAY ACROSS THE CAPITAL STACK. WE WANT TO MEET THE MICHIGAN MARKET WHERE IT IS.” — Mike Cazer, CEO of Continuum Ventures, the DeVos family office backing the fund

Chris Keogh, Midwest region head for Goldman Sachs’ private wealth management practice. “And they’re also far and away the most adept at being able to measure and prove efficacy.” Despite some of the criticism of the broader private equity industry, the sector has been on a tear in recent years. Data from industry publication Pitchbook, presented in a recent re-

industry, the emerging group also seeks to be a solution for another issue facing much of the state’s businesses: the lack of a clear succession plan. While being a family-owned a business is not a requirement the fund plans to put in place, DeVos and others said that just given the makeup of the state’s business landscape and types of industries in which they’ll be active, family-owned busi-

Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood

Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

18 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

P018_CD_20210215.indd 18

2/12/21 5:10 PM

NOMINATIONS NOW OPEN

COVID-19 LIABILITY: Lawmakers still debating how to give businesses lawsuit protections. PAGE 3

CRAINSDETROIT.COM I SEPTEMBER 7, 2020

NOMINATION DEADLINE: March 3 We are looking for executives who have championed, developed and/or implemented diversity, equity, and inclusion strategies and initiatives within their organization.

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UNDER

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CRAIN’S DETROIT BUSINESS SAVE THE DATE: Celebrate with the winners — as well as our 2020 Class of 20 in their 20s — during a virtual event the week of Nov. 15; visit CrainsDetroit.com/ Celebrate for details.

COPING WITH COVID-19

NOMINATION DEADLINE: March 5 Is your company a top-notch place to work? Tell us about what makes you stand out! For the ninth year, Crain's will recognize the Cool Places to Work — companies that, according to their employees, go above and beyond in putting a focus on workplace culture. Winners will be featured in a special section of the August 23 issue of Crain’s Detroit Business.

WINNER

, LIFETIME

BY CHAD LIVENGOOD AND DUSTIN WALSH

ACHIEV

EMENT

David Co llon, M.D Physician and Form .

BY JAY GRE

er Presiden t, Michiga n Orthopa edic Surge ons

ENE

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to maintai n oxygen importthe bod y, levels in M.D., asso but until Patrick ogy and ciate professor of Hines, ped phy cine at Way iatric critical care sioltroit, crea ne State Univers mediity testing platted a special labo in Deto assess form, nobody had ratory how hea lthy a pati a way blood cell ent’s red s are. “This is som portant bec ething that’s real ly iminvestment ause there’s bee n cells), but in therapy (of reda lot of ther blood tic tests that e weren’t any diagnoscan tell a physicia a drug dev n about the or researchers eloper, any cells,” said health of one’s red thing blood atric criti Hines, who also is cal dren’s Hos care doctor at DM a pedipita C ChilHines’ idea l of Michigan. was to platform that cou create a testing health of ld measure red bloo the d ing prop erties such cells by evaluatmembran e stability as stickiness or patients . By iden at malities, risk for blood flow tifying doc abnormation to tors could use the infortion for indichoose the best medicavidual pati “We first ents. looking at started using the test developed the drugs that hav and patients. to treat sickle cell e been It’s a big deal in metdisease troit bec ause we highest sick have one ro Dein the U.S. le cell patient pop of the ,” Hines said ulation .

10 | CRAI N’S

DETR OIT

BUSINESS

| JUNE 1,

NOMINATION DEADLINE: May 9 We are looking for executives who have those who are making an impact through professional, civic and philanthropic achievements.

“WE AR OUR ST HAVE M TABLE, P HEALTH HOSPITA PURCHAS EVERYBOD AT THE TAB

— Steven

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teven Gra nt, M.D., the Gre Council, ater Detroit has witn change ove esse internist r 40 years as and al physicia administra n organiza tion Grant co-f cians, one ounded Un of the organiza largest tions in Sou gan with LGBTQ inc trau2,000 doc the liative car presiden tors, a e, sickle cell lusion in have not t from health car gone awa 2000-2010 anealso the y because e among first Many of the Detroit executive d of corona them — these win virus. COVID-19 cian Hos Medical Cent ners are pital Org , adminis also first 2010-2013 anizatio teri part of the responder of the IPA and is current p ir day-to-da ng front-line car Asso e in hospita s to y But we “It was not ciation of Am ls as also want responsibilities. ing medicin always easy” health car to recogn e worker ize that cian orga e and heading up this year, is a hero. serve as nizations, sees pati represent every said Gra We hope ents n ativ these hon life on the es for eve ham Farm at his practice “We’ve bee orees in “WE’VE BE ryo line to sav that a lot. s. “People would safe during work in help n able to do e lives and ne who has put EN I a a lot of their ing determi the pandem jobs betw always had two keep our DO A LOT OF ABLE TO tient gets ful ne wha een my priv communiti wha ic. GDAHC, This is goin t drug at the righ t paes DMC or ate pract HELPING DE WORK IN g t to time Win wer allo UP. . e long. Fort w much bett plication ners were The h of unately, nominated my kids, WHAT PAT TERMINE medications (three new sick er apfor me tions were as by peers le cell) IEN for these in late 199 things started to judged and and patien After two patients.” ram 0s, they WHAT DRUG T GETS selected years of ts. Nomin school.” were into ` Lenora founded by a panel ah Functional research, Hines Hardy-Fo that includ Son Ada 2014 with RIGHT TIM AT THE Fluidics ste ter ; 2019 ed: inson Wri m, an attorney with E.” Health Car r, president and research permission to lice LLC in ght in Det — Patrick Di CE as nse e a O, He star his his Judson Cen ro roit Hines tup com father for Wayne Stat ` Michae pany from the Crain’s , nomina e’s board l Lee, Ma Hero awa Located Hea of rd. naging Edi lth Ca gove on the ` Amy Elli When he fifth floo rnors. tor, Crain’s WSU-affi hea r of the liated incu ott ded De ganizations up troit Busine Detroit troit Busine Bragg, Special , Grant led physician o in Midtow bator TechTown ss plement Projects ss now has efforts n, the com mod Editor, Cra 12 Crain’s Sen health reco ular and full elec to im ing labs. employees and thre pany in’s Dee testsician offic rds in independen troni ecutive Edi ior Health Care Initially, t phy Reporter tor Kelley Functional outspoken es. He also has signed a Jay Gre sion-maki been an Root also advoca rese Fluidics dent phy ng proces contribute ene and ExDiego-based arch contract sicians alonte for indepenwith s. d San improve to our dec It has sinc Mast Therape the health g with efforts to utic iwell-being and eco We also hig pharmaceu e contracted with s Inc. hlight eve munities of individuals andnomic ing Novartistical companies, other cor in ona ryd met com incl ay viru , ro Detroit herois s in our we Grant was Therapeutic Pfizer and Global udinstrumenta. ekly COVID m in response Blood s. ing GDA Earlier this to the l in help HC -19 Heroe year, Fun online mul launch in 2007 s series. ics began ctional HEALTH the first test mance repotipayer provider CARE HER largest sick ing blood at six FluidOES WIN le cell cen of Michigan. rt (MyCareCompaperfortion. NERS ters in the the re) in Lifetime nainsights The report gives The com Ach into pati iev ents qua ement lity of physicia raising $1.5pany now is focu ` David Coll n organiza and outcomes Innovatio sed million on, M.D., “We earl tions. labs, hiri to expand on Page 10 n ng more ` Steven lic reportiny on felt we needed will help technicians the Grant, M.D ` Patrick pubincr Hines, M.D ., Page 11 who report out g of quality met all over the ease testing at ., Page 10 rics Corporat hospitals cou ` Randall tion leve at the physician orga . We e Achievem Benson, M.D Hines and ntry, Hines said l, niza. his team ., Page 14 but people not individual ent Ad ` Gina Bucc ing with are doctors, coll can Wayne Stat ministra aboratalo, M.D., go pare phy cian Phil Page 12 tor/Exec sician orgaonline and comlip Levy on e and ER physiPh said niza ysi ` Gerold the health . tions,” Gra a study to cian Bepler, M.D nt assess of red GDAHC ., Page 14 measure `Latonya ` Kimberl antibodies blood cells and Riddle-Jo signed to has other initiativ y Hurst, P.A., COVID-1 in patients nes, M.D., es de9. Page 14 Page 12 with viders in inform patients ` Andrew Allied He and prosuch area King, M.D ., Page 12 vention, s as diab alth etes ` Nadia Trem ` Tiffany paramed expanding com preonti, M.D Morelli, R.N. icine, add munity ., Page 13 , Page 15 and the ` Jan Stok opioid cris ressing obesity osa, Page use and health care is, reducing ER 15 costs. “We are is we hav a convener. Our stre e many at the table, ngth physi-

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DISPLA Y HEAD

For more information, visit

See WORKERS on Page 28

Associate Pro Wayne Sta fessor of Physiolo te Universi gy BY JAY GRE ty School and Pediatric Critic ENE of Medicine al Care Me dicine, ealthy red Hant blood cells are

NOMINATION DEADLINE: March 17 This program recognizes metro Detroit’s outstanding human resources executives and teams. Often operating behind the scenes, sometimes boxed into stereotypes about pizza parties and paperwork, HR professionals are actually the nerve centers of their businesses – taking care of its people, controlling costs, keeping the business in compliance and helping achieve its strategic goals.

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Tandem Ciders, Gerber baby food and Materne’s GoGo Squeez apple sauce in a pouch. But with the height of the apple-harvesting season just weeks away, Magana has only been able to find 13 workers this year. And there’s no guarantee all of them will show up.

NOMINATION DEADLINE: March 10 We’re looking for your stories about Health Care Heroes who are working hard to make a difference — whether they're in hospitals or business offices — people who have stepped up in unimaginable circumstances to save lives. We're looking for unexpected stories, unsung heroes, and unlikely triumphs in the face of steep odds.

of the family-owned farm that dates back to the 1870s, has been trying to recruit 28 migrants for fourth-generation farmer David Smeltzer and other nearby fruit farms. The Mexico-born immigrant uses a variety of contacts to get the laborers Smeltzer needs to hand-pick 100,000 bushels of apples that end up in fresh fruit markets, hard cider from

BEAR LAKE — At West Wind Orchards, longtime farm laborer Leo Magana serves as the de facto recruiter of seasonal migrant farm workers to pick apples each fall in orchards along the bucolic M-22 highway in Manistee County. Magana, a year-round employee

NEWSPAPER

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MEET THE CLASS OF 2020 | PAGES 8-27

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BONDS

From Page 3

Indeed, Detroit officials said in a news release that they’ve seen high demand for the Proposal N bonds — $3.4 billion in orders for the $175 million sale. Social bond is a buzzword that’s creating a swirl of demand. But the term is also self-designated, and there’s no obligation to meet specific goals or benchmarks when using the term to sell debt. As of late December, social bonds raised $163 billion for the year, dwarfing the $13 billion of 2019, according to a report by law firm Linklaters citing Refinitiv financial market data. They still trail green bonds, which finance environmentally friendly projects and raised more than $227.6 billion in 2020, but are gaining steam. Detroit’s use of the social bond designation is a boon for the city that has greatly improved its financial standing since the 2013-14 bankruptcy but whose bonds remain “junk,” or below investment-grade, status. Under the Proposal N plan, Mayor Mike Duggan’s administration plans to demolish 8,000 blighted houses and secure another 6,000 from deterioration in an effort to deal with mass vacant housing stock. The Proposal N bonds meet several social bond standards set forth by the International Capital Market Association, including “affordable housing, employment generation and socioeconomic advancement and improvement,” Jay Rising, Detroit’s acting chief financial officer, writes in a letter describing the city’s new bond issue filed with the Municipal Securities Rulemaking Board. But social bonds don’t require a project to meet any benchmarks or criteria as it moves forward. “No party, including the city or the underwriters, assumes any obligation to ensure that the (Neighborhood Improvement Program) complies with any legal or other standards or principles that may be related to

The city of Detroit plans to sell the first $175 million in Proposal N bonds on Thursday. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

‘social projects’ or that the bonds comply with any legal or other standards or principles that may be related to ‘social bonds,’” the city’s filing says. However, the city does plan yearly reports on the progress of its Proposal N work, though it is not required to do so. Proposal N intends to create 6,000 newly available homes out of old ones that need fixing up, and is investing $12,000 per house to stop them from falling further into disrepair. But they would still need to be renovated, and it’s not assured that

FOUNDATION

From Page 1

Wilson, the former owner of the Buffalo Bills and Grosse Pointe Parkbased investment firm Ralph Wilson Equity Fund LLC, left a $1.2 billion bequest to fund the Ralph C. Wilson Jr. Foundation in January 2015. Like Wilson, VanElslander left directions that the $40 million in assets he’d transferred to the foundation in 2017 be spent down over 20 years. Once the remaining commitment to the Solanus Casey Center is paid, Wells projects the foundation will have roughly $30 million in assets. But the eventual amount could be more or less depending on the return on investment the assets produce. The Wilson Foundation in the fall 2019 projected the actual amount it gives out will be nearly double the original gift or closer to $2 billion, even with two recessions figured in. The VanElslander Foundation’s assets had grown to $45.8 million by the end of 2019, even after it made nearly $3 million in grants in 2018 and 2019. For the most part, the VanElslander Foundation has been focused on ensuring the completion of the Solanus Casey Center project over the past three years, said Kenneth VanElslander, 67. “From what I’m learning, we are

Wells

VanElslander

more involved than most foundations when it comes to this project.” Jaime Rae Turnbull, a consultant to the foundation, helped assemble land for the project and continues to lead the foundation’s involvement. The center and its expansion hold special meaning to the family given the tradition of visiting it to pray handed down from their grandfather to their father to them and their own children, VanElslander said. It’s also continued to make grants to nonprofits that Art VanElslander supported in the areas of health and wellness and children and families, while it develops plans for the future. The foundation made $1.1 million in grants in 2019, with the bulk of it going to the Providence of St. Joseph of Capuchin Order for the Solanus Casey Center project and the Ascension St. John and Providence foundations, following $1.8 million in grants made largely to those organizations and smaller grants to nonprofits including Detroit Public

the process will be “affordable” as the social bond designation stipulates. Experts are concerned there’s not enough of a market for affordable renovation in some areas of Detroit without major subsidies. The city’s new bonds are being sold in two separate series: $135 million in tax-exempt bonds for demolition activities (Series 2021A) and $40 million in taxable bonds (Series 2021B) for work securing houses, according to the city’s bond filing. The bonds will be paid off through property taxes. Detroit will pay on the resulting

debt through 2050. With interest, that totals $274.2 million for 2021A and $46.4 million for 2021B. Including Detroit’s other unlimited tax general obligation bond debt, issued in previous years, that brings its total owed on these bonds in the next 30 years to nearly $1 billion ($994.5 million). The latest bonds’ interest rates are mostly 5 percent — some 4 percent — for its series 2021A bonds and lower — 1.8 percent to 3.3 percent — for its 2021B bonds. The general obligation bond debt, it should be known, does not include

Television and St. Paul Church on the Lake in Grosse Pointe. The foundation is now looking for new causes that exemplify the leadership traits that were important to his dad, VanElslander said. “We look for (organizations) that are running lean and are entrepreneurial-minded, because that’s what Dad would have been interested in.” His father was also impressed with passionate nonprofit leaders, so the foundation will seek passionate, entrepreneurial-minded folks in the nonprofit space, he said. And within its larger focus areas, it’s considering and funding causes in substance use disorders, developmental and cognitive disabilities and eyesight issues, which were very personal to his father because he dealt with them, said VanElslander, a licensed, practicing counselor in Milford, specializing in substance use disorders, depression and grief. Newer organizations and causes attracting support from the foundation include Benjamin’s Hope, a Holland farmstead community designed to connect adults with developmental and intellectual differences to the larger West Michigan community; and Sanctum House, a Royal Oak nonprofit that supports adult female survivors of human trafficking — an organization that had impressed their father, he said. In December, it granted $200,000-

$250,000 to provide hundreds of meals from Andiamo’s and Trattoria Serventi to employees at Ascension St. John Health’s Detroit, Novi and Southfield campuses and Detroit Police Department officers at precincts on the city’s east side. It’s also provided support for SAY Detroit, an initiative dedicated to actions to protect and support vulnerable populations — seniors, first responders, children

“WE LOOK FOR (ORGANIZATIONS) THAT ARE RUNNING LEAN AND ARE ENTREPRENEURIALMINDED, BECAUSE THAT’S WHAT DAD WOULD HAVE BEEN INTERESTED IN.” — Kenneth VanElslander

and the homeless. “Here are two instances where we know where that food is going and that money is going,” VanElslander said. “Mitch (Albom) runs a lean organization. Those are the types of places we’re looking for to help.” Racquet Up Detroit, a nonprofit that teaches the game of squash to youth while also providing mentoring, academic support and other life skills, has also attracted a $500,000 grant from the foundation to support a new, $6.5 million building it’s con-

Detroit’s large, looming obligation: legacy pension payments that start in fiscal 2024. That obligation is a major part of why Chicago-based nonprofit Truth in Accounting gave Detroit a “D” grade for its fiscal health in its 2021 Financial State of the Cities report. Scorsone points out, though, that the interest rates Detroit got for these bonds are “not too bad” considering the city’s credit rating and where it has come from financially. Detroit recently, starting in 2018, has been able to sell bonds backed with its own credit. Before that it would need the state of Michigan or to use costly insurance layered atop of the debt. Interest rates are low across the board right now in the municipal bond market, which the city has said makes it a good time to sell. “It’s not the lowest rates out there. (But) for somebody looking for some yield and meeting that social criteria this is probably not a bad investment, potentially,” he said. “The fact that Detroit is issuing debt like this only five, six, seven years after bankruptcy is pretty remarkable because I think a lot of people, there’s the idea that once you go into bankruptcy, there’s going to be this huge penalty for a long time,” Scorsone added. Detroit’s debt may be considered comparatively risky because it’s below investment grade, but municipal bonds aren’t considered a very risky investment in general because those selling them don’t often default. Detroit has a Ba3 credit rating with a positive outlook from Moody’s Investors Service Inc. and BB- with a stable outlook from S&P. The city’s bond counsel for the sale is Miller, Canfield, Paddock and Stone PLC and its municipal adviser is Public Resources Advisory Group Inc. It cost the city a total of $1.4 million to issue these bonds, between fees for printing documents, costs for the rating agency, counsel, transfer agent, dissemination agent, auditor fees and other payments. Contact: afrank@crain.com; (313) 446-0416; @annalise_frank structing in northwest Detroit, he said. It will include a room within the A. A. VanElslander College and Career Center in recognition of the gift. During his lifetime, VanElslander was St. John Providence Health System’s (now Ascension Michigan) largest donor, with donations well in excess of $20 million. He was also credited with saving Detroit’s Thanksgiving Day parade with a $200,000 donation when it was set to shut down for lack of funding in 1990. In total, he donated millions to The Parade Co. in support of the parade between personal contributions and sponsorship support made through Art Van Furniture. The VanElslander Foundation has had conversations with The Parade Co. about future support, possibly for the new headquarters it’s planning in Detroit, Ken VanElslander said, but there’s been no commitment made yet. “We’re very open to it, and we know what it’s meant for the city of Detroit … what it meant to Dad. But we need to hear more.” Still, the trustees don’t have any preconceived ideas of specific organizations the spend-down foundation will support in the coming years, he said. “Dad imprinted on all of us to always be willing to listen.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

20 | CRAIN’S DETROIT BUSINESS | FEBRUARY 15, 2021

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REDEVELOPMENT

Packard Plant owner said he would pay late taxes by end of 2020. He hasn’t. Palazuelo blames the pandemic for challenges BY KIRK PINHO

Packard Plant owner Fernando Palazuelo hasn’t made good on a claim he made in October that he would pay at least $200,000 in backdue property taxes by the end of 2020. In fact, he actually owes more today than he did at that time as the historic but dilapidated 40-acre property with 3.2 million square feet of Albert Kahn-designed space teeters toward foreclosure. A little over four months ago, the developer now living in Peru owed $774,723 in back taxes and unpaid Detroit Water and Sewerage Department bills and Palazuelo said he would pay a substantial portion of that by year’s end. Today, he owes $821,426, according to data Crain’s compiled Wednesday using the Wayne County Treasurer’s Office website. That $47,702 increase is likely attributed to interest and late penalties. “The economic hardships resulting from the ongoing global pandemic have created significant challenges for our companies and made it very difficult to effectively manage cash flows,” Palazuelo said in a Friday morning email. “As you are well aware, our efforts at the Packard Plant are funded entirely from our operations in Lima and other areas of the world where the commercial operations of the tenants in our buildings have been on government-imposed shutdown for the past year. However, we are fully aware of the amount needed to pay

The Packard Plant on Feb. 12, 2021. | KIRK PINHO/CRAIN’S DETROIT BUSINESS

Packard Plant owner Fernando Palazuelo. | LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS

past due taxes and the extreme drainage fee assessments for our Detroit properties prior to the end of March and are making arrangements to ensure that those amounts are paid well

in advance of the deadline.” Wayne County Treasurer’s Office records show that Palazuelo owes $336,728 for the 2017 tax year and $254,006 for the 2018 tax year, al-

though how much of that delinquency is due to back property taxes and how much is due to DWSD unpaid bills is unknown. Those dozens of properties, small and large alike, are subject to foreclosure at the end of March if the taxes are not paid. They would then be sold at a Wayne County tax-foreclosure auction, the same auction at which in 2013 he bought them for just $405,000, or less than half of what he today owes in taxes and DWSD bills on the site around East Grand Boulevard and I-94 on Detroit’s east side. “He knows this is an impediment with the city,” Larry Emmons, who is working on marketing the property for sale or lease as senior managing director in the Farmington Hills office of Newmark (formerly Newmark Knight Frank), said of Palazuelo. He said he hasn’t been involved in the tax delinquency discussions but said there have been “serious looks” at the property and that “we’ve been fairly successful in ginning up interest.” Palazuelo’s tenure as the dilapidated former plant’s owner has been marked

with repeated property tax delinquencies and other unpaid bills; a lawsuit over unpaid office rent; the collapse of the iconic Packard Plant bridge over East Grand Boulevard; grandiose visions that never materialized and an unfinished redevelopment of the former administration building that’s 3 1/2 years in the making. A photo shoot involving wild animals drew international attention in 2015. In late October, he hired Newmark to market the property for sale or lease for a large scale industrial or warehouse user, along the lines of what experts for years said should have been the vision instead of the bohemian mixed-use plan Palazuelo originally floated including apartments, shops, restaurants and other uses. Much of the complex, which totals more than 3 million square feet of space across 40 some-odd acres on both sides of Grand Boulevard, would be demolished if this new vision goes according to plan. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

REAL ESTATE

Two obstetrics practices rolled up by private equity firm Eastside Gynecology Obstetrics and Comprehensive Woman’s Care acquired in the deal BY DUSTIN WALSH

A Chicago private equity firm acquired two metro Detroit obstetrics practices in a roll-up growth strategy. The platform investment by Shore Capital Partners LLC puts together Eastside Gynecology Obstetrics and Comprehensive Woman’s Care as a new company, Birmingham-based Together Women’s Health LLC. Shore Capital says it’s the largest private obstetrics practice in Michigan with 125 employees at seven locations. Terms of the deal were not disclosed but Together Women’s Health will operate as a managed service organization and the physicians retain ownership in the overall company and individual practices. The combined entity operates locations in Clinton Township, Chesterfield Township, Detroit, Macomb Township, Rochester, Grosse Pointe and Roseville. Under the roll-up, the existing partner physicians will continue employment under the new

company and continue serving the community. Together Women’s Health is led by CEO Anthony Ahee, who serves as managing partner of health care inAhee vestment firm Honor Equity. Honor was a minority investor in the deal. Paul Nehra, head of the Eastside practice, also now serves as chief medical officer of the combined company, Shore said in a press release. “With health care ever-evolving and the inherent challenges of private practice, we felt it was time to collaborate with a strong business partner,” Nehra said in the release. “Shore uniquely filled that role to shepherd us as the platform partner in Together Women’s Health. They have a fantastic record of enabling transformational growth, and our

According to research published last year by researchers at Oregon Health & Science University, Wharton School of the University of Pennsylvania and Johns Hopkins University, 1,426 physical locations and 5,714 physicians were rolled up in deals with private equity firms between 2013 and 2016. Together Women’s Health plans to roll up more practices in the future, Ahee told Crain’s in an email. “We are certainly looking to affiliate with additional practices with strong clinical reputations throughout Michigan and the Midwest,” Ahee said. “We encourage ob-gyn practices who may be interested in learning more about the value that we can bring to their practices to visit our website at togetherwomenshealth. com and to contact us to learn more about our culture, mission and values. ”

The Macomb office of what is now Together Women’s Health.

practice felt that this relationship would position us to be a future leader in women’s health.”

Private equity’s interest in rolling up physician practices has been growing for years.

Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

FEBRUARY 15, 2021 | CRAIN’S DETROIT BUSINESS | 21

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THE CONVERSATION

Growth, then COVID: Mike Perry’s long road as nursing home CEO THE WELLBRIDGE GROUP: Nursing homes, their residents and staff have been hit hard by COVID-19, but through it all CEO Mike Perry believes having a strong management staff and front-line workers, along with high-quality facilities, have helped the company weather the coronavirus storm. In early April, when COVID-19 started to hit residents and staff of his highly rated 2,000-bed nursing home chain, Perry and team pivoted from acquisition plans to lockdowns and infection control to protect seniors and health care workers. Among other measures, WellBridge spent nearly $1 million improving HVAC systems throughout its 26 homes in Southeast Michigan, including installing ultraviolet light systems to inactivate the coronavirus. | BY JAY GREENE `You were born in Lansing and grew up in Michigan. Tell me how you became interested in health care and nursing homes. I was 16 years old and in high school and wanted a job. I put my application into a dietary department at a Chelsea retirement community. They hired me in February of ’87. I just absolutely loved my job. I love working with the senior population. I waited tables in their dining rooms, washed dishes and did other jobs through high school until I got a bachelor’s degree in public administration from Eastern Michigan University. I went on to get a master’s in business administration from the University of Phoenix in Southfield. I was interested in going into politics. But I ultimately decided I wanted to chase my passion and work with seniors. I got my nursing home administrators license. Over the years I’ve worked at several long-term care companies in different states. But my heart and family were in Michigan, so I came back in 2012 and with some partners we started the WellBridge Group. `Tell me about WellBridge. We opened our first WellBridge home in the spring of 2012, an 88-bed facility in Brighton. We have opened seven more new state-of-the-art nursing homes. In 2014, we had an opportunity to merge with NextCare Health Systems and their 17 facilities. The next year we were a company of 25 homes in Wayne, Oakland and Macomb counties. We added another to make 26 in 2019. It’s been a great journey. We have a great team of people. Our dream was to create a new model of senior care where we predominately have private rooms. Many older facilities have semi-private and some still have three or four bed wards. All our WellBridge facilities have bathrooms and showers. We have integrated spa salons, massage rooms, which unfortunately haven’t been used lately. We were on a steady growth path until last year when COVID hit.

`WellBridge is highly rated by Medicare’s Nursing Home Compare website. Six of eight homes sport 5-star quality ratings, the seventh is 4 stars and the eighth is too new to be rated. Tell me about it. New facilities have much better designs and infrastructure. It creates efficiencies for staff and you see higher levels of customer satisfaction when people are able to have their own rooms and other amenities the older facilities don’t have. We integrated some of our best concepts from the new homes into some of the more aged facilities. Our 18 NextCare homes have improved from an average rating of 3.6 in 2014 to 4.2. I’m very proud of our star ratings. Our average throughout the 26 facilities at the end of 2020 was 4.5 stars out of five. (Note: The overall average for Michigan’s 455 nursing homes is 3.0, with only 36 facilities with 5-star ratings, according to Caregiverlist.) `How did COVID-19 change your business? Dramatic changes. First, our occupancy levels tanked. Before, we were close to 90 percent occupancy, well above state average. Now we’re down to 68 percent occupancy, and our revenues are significantly off. The stimulus money is helpful. But we can’t continue to operate with our fixed costs and labor costs going up. We’ve had people exit the industry and that has been challenging. A national poll of homes showed 40 percent of operators are going to have trouble with cash. I haven’t heard anybody in Michigan thinking about closing, but it is tough sledding now. `How has the pandemic affected residents and staff? We locked down visitation in March. Our residents have been essentially confined to their rooms. We loosened up a little during the summer for communal dining. However, when you get positive cases, you have to shut it down. I’m so extremely proud of our

team. We pulled together. The guidance from CDC (Centers for Disease Control) was changing day by day, moment by moment, and we kept everybody tuned to that. We jumped in and procured $1 million of PPE in our warehouse for strategic reserves. But the worst day toward the end of April, we hit 500 positive cases with residents and staff. We have 2,000 beds and roughly 2,500 employees. The numbers leveled off over the summer, then started to peak up late October. We had days during the summer when we had maybe 10 positive cases, mostly staff. By the end of November we were up to 217 cases between residents and staff. Now we are about 100. Sadly, we lost about 100 of our residents and two staff members. At the end of the year we had a virtual meeting with all our staff. We had a moment of silence for all we lost, certainly in our state and our nation, and frankly, the world.

We’re hoping they won’t forget everything we and our residents have faced and help us prepare for the next one. `Any final thoughts? I just want to thank all of the caregivers in all the facilities in our company and in the state. Nurses, housekeepers and other front-line workers did the best job they could. I’ve seen firsthand what they’re doing behind the scenes. I’d also like to thank the public. I know families, residents and everyone, they are frustrated. It’s been difficult for all. We are hoping for a better fall and by 2022 getting back to normal.

Mike Perry, CEO, The WellBridge Group

`Everyone went through a lot. Do you blame anyone? I’ve never been a big fan of the blame game. Politically, there’s too much of that going on. There should be more dialogue. My feeling is let’s work together. Of course there are things I wish we all had done differently. The world wasn’t prepared for this. Maybe more warning, more communication, more coordination. The policymakers, I wish they would do more for our industry. We take care of seniors, our moms and dads. They are us. We’ve always had the lowest rates, and we are asked to do a lot with very little reimbursement.

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RUMBLINGS

MSU professor backed to fill vacancy on Fed board A MICHIGAN STATE UNIVERSITY professor is being named as a candidate for the most powerful financial board in the country. Economist and Michigan State University professor Lisa Cook has the backing of several key White House officials and allies outside the administration as a possible choice for President Joe Biden in filling a vacancy on the Federal Reserve Board of Governors, according to a report from Bloomberg News. Cook is also on the steering committee of the Washington Center for

Cook

Equitable Growth, a think tank co-founded by White House adviser Heather Boushey. Treasury Sec-

retary Janet Yellen was previously on the steering committee. Biden has not weighed in on choices for filling the one current vacancy on the Fed board and the White House has not contacted Cook for the job specifically, people familiar with the matter told Bloomberg on the condition of anonymity. No announcement is imminent, they added. A White House spokeswoman declined to comment, and Cook did not immediately respond to an inquiry. Cook works in the Department of

Economics in the Broad College of Business and in International Relations at MSU’s James Madison College. She is not teaching classes in either college this spring semester, an MSU spokeswoman said. She received a Ph.D. in economics from the University of California at Berkeley, and bachelor’s degrees from Spelman College in Atlanta and Oxford. Biden may need to fill four vacancies at the Fed over the coming year, depending on whether he opts to keep former President Donald Trump’s appointees in place.

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