THE CONVERSATION Lynnette Boyle on striking out on your own. PAGE 46
SMALL BUSINESS SPOTLIGHT Gig industries present special challenges. PAGE 30
CRAINSDETROIT.COM I MAY 24, 2021
Cranking back up Downtown preps for return of office workers BY NICK MANES
The downtown Detroit corporate world has been dormant for 15 months, with legal cases argued from spare bedrooms and tens of billions in mortgages sold from workers’ basements during the COVID-19 pandemic. That’s slowly starting to change, much to the delight of the small business owners and others around
the city’s central business district. Eric Larson, CEO of the Downtown Detroit Partnership, an economic development organization for the city’s central business district, said public recreation areas like Campus Martius and Beacon Park have been vital for many people during the pandemic, but a return of everyday office workers is greatly needed. “Throughout this pandemic —
the last 15 months — the public spaces have seen an increase not only in demand, but the role (they’ve played) as they’ve supported safe activities outdoors,” Larson said. “But there’s nothing like the workforce returning to the city to help really spur some needed economic infusion.” To Larson’s point, city officials See RETURN on Page 44
Downtown workers have been an engine of rebirth for Detroit.
| NICK MANES
Rodney W. Parnell is a retired chief of the Detroit Fire Department’s Community Relations Division and relies on his city pension.
PENSIONS
CLIMBING
THE CLIFF NIC ANTAYA/SPECIAL TO CRAIN’S DETROIT BUSINESS
The Grand Bargain gave Detroit a 10-year break from payments for city workers’ pensions. Is the city ready? FORUM SECTION BEGINS ON PAGE 33
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CRAIN’S LIST PRIVATE 200 What are the largest privately held businesses in metro Detroit? Take a peek. PAGE 23
NEED TO KNOW
GOING TO COURT
THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT COVID RESTRICTIONS TO END ON JULY 1
ty rules that could have taken effect in the fall.
DOMINO’S WILL BE LOOKING FOR A NEW CFO
THE NEWS: Michigan will increase indoor capacity limits for all facilities and businesses to 50 percent and outdoor venue capacities will be entirely lifted on June 1, before all capacity limits are eliminated July 1, Gov. Gretchen Whitmer said Thursday. Also starting June 1, capacity limits for outdoor stadiums and venues will be lifted after the CDC said the threat of COVID spreading among vaccinated and unvaccinated people is minimal in outdoor settings, Whitmer said.
WHY IT MATTERS: The deal may finally ease longstanding tensions in the Capitol that existed even before the Democratic governor issued sweeping orders to control the coronavirus more than a year ago.
THE NEWS: Domino’s Pizza is on the hunt for new chief financial officer after current Executive Vice President and CFO Stuart Levy resigned. The Ann Arbor-based pizza chain, with nearly 18,000 locations in 90 markets, on Wednesday announced Levy is leaving his posts, effectively immediately, but will stay on with Domino’s through Aug. 31 in an advisory capacity as the company works to find his successor.
WHY IT MATTERS: The announcement replaces a plan tied to vaccination rates in light of new recommendations from the Centers for Disease Control and Prevention.
BUDGET DEAL SCRAPS PERMANENT MIOSHA RULES THE NEWS: Gov. Gretchen Whitmer and Republican legislative leaders on Thursday announced the framework of an agreement to open budget negotiations, give lawmakers input into future pandemic restrictions and drop potential permanent COVID-19 workplace regulations. GOP lawmakers will include Whitmer’s budget director in talks about the next state spending plan and how to spend an influx of billions of federal relief aid. The governor’s administration will withdraw permanent pandemic workplace safe-
UM AIMS TO ELIMINATE ALL CARBON EMISSIONS THE NEWS: The University of Michigan presented Thursday a series of steps it will take to eliminate carbon emissions across its footprint in the next 20 years. During a regular board of regents meeting, UM President Mark Schlissel laid out the plan, which includes three main goals that apply to UM campuses in Ann Arbor, Flint and Dearborn, as well as Michigan Medicine and the university’s presence in Detroit. WHY IT MATTERS: The announcement follows the university’s high-profile pledge in March to overhaul its investment strategy and achieve a net zero carbon footprint in its $14 billion portfolio by 2050.
WHY IT MATTERS: Domino’s has been on a hot streak of increasing sales that has lasted for years. Levy is leaving “to pursue other opportunities” and his departure did not result from any disagreement regarding the company’s financial reporting or accounting policies, procedures, estimates, or judgments, Domino’s said in a news release.
Piston Group sues over minority certification loss Vinnie Johnson’s Piston Group made good on its promise to file a lawsuit against the Michigan Minority Supplier Development Council over its decision to decertify the auto supplier as a minority-run business. The lawsuit, filed Tuesday in Wayne County Circuit Court, alleges the council and its president, Michelle Sourie Robinson, were “vindictive, willful, wanton or malicious” in their actions to decertify Piston Group as a minority business enterprise in February, the company said in a news release. The organization decertified Piston Group on the grounds that the day-to-day operations of Johnson’s company were largely run by white men, in violation of the organization’s rules. It said in a statement that the decertification followed its own rules that all members agree to. The loss of its minority business enterprise status could be quite costly for Piston Group. Automakers spend billions of dollars working with minority-business enterprises and tout those purchasing totals. Former Detroit Pistons guard Vinnie Johnson is majority owner and chairman of Piston Group.
RED WINGS EXTEND BLASHILL’S CONTRACT THE NEWS: The Detroit Red Wings are sticking with coach Jeff Blashill for their rebuild. General manager Steve Yzerman made the announcement Tuesday, giving Blashill a contract extension despite a five-year postseason drought and a career record of 172-221-62.
| PISTON GROUP
WHY IT MATTERS: Blashill has come under fire as the Red Wings suffer through their longest drought in postseason appearances since 1979-1983.
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RecoveryPark supporters voice concerns over venture
caused by the growth of Amazon.com Inc. and online shopping overall. Partridge Creek’s current owner, the real estate giant Starwood Capital Group — which bought the mall in 2014 as part of a $1.4 billion deal with what was then Taubman Centers Inc. (now Taubman Co. LLC) for it and six other malls — declined comment through a spokesperson. See MALLS on Page 42
See RECOVERYPARK on Page 41
LARRY PEPLIN FOR CRAIN’S DETROIT BUSINESS
At top, The Village of Rochester Hills is at Adams Road and Walton Boulevard. It was developed in 2002. Below, the Mall at Partridge Creek in Clinton Township.
Partridge Creek is in trouble, Village of Rochester Hills isn’t. What’s the difference? A pair of open-air shopping centers not so far apart are facing different fates. The Mall at Partridge Creek in Clinton Township is looking down the barrel of receivership after its Miami Beach, Fla.-based owners defaulted on a $725 million mortgage, buckling under the weight of massive debt, the COVID-19 pandemic and e-commerce.
Tenants, in particular its anchor department stores that took up some 41 percent of the square footage, have fled. About 16 miles away, the Village of Rochester Hills is about 95 percent occupied and regularly adds new businesses to its roster that includes a Von Maur luxury department store to open next year and the Whole Foods Market Inc. store that serves as a daily and weekly draw. It also recently it lassoed Robert Redford’s
Sundance Catalog, Busted Bra Shop and Beautiphi Aesthetics and Wellness. The difference between the two malls? Experts say they lie in design and planning — and also in borrowing. The centers’ futures will be determined in the months and years ahead as the fallout from a global public health catastrophe continues to become clearer and as the retail landscape continues its mass reorganization
BY SHERRI WELCH
Supporters of Detroit-based RecoveryPark are speaking out against the involvement of two high-profile investors and former employees in a hydroponic venture planned by the nonprofit launching a similar, for-profit effort in the suburbs. As Crain’s reported last week, Third Coast Produce LLC, dba Lakeland Fresh Farms, is setting up a hydroponic growing operation at an 80,000-square-foot warehouse in Chesterfield Township to grow greens and sell them directly to local grocers and restaurants. Joe Corace, former head of Inalfa Hollandia Inc., is leading the new company as president and CEO. He’s joined on the board by James M. Nicholson, chair of PVS Chemicals Inc., and Stephen Polk, CEO of Birmingham private investment firm Highgate LLC., who founded the company last September, according to state filings. Nicholson, Polk and a third investor, Walter Tripp Howell, retired international director of Jones Lang LaSalle in Washington, D.C., and an ex-pat of the Detroit area, made a roughly $4 million commitment in 2019 to provide bridge operational funding for RecoveryPark and fund construction and startup costs for a climate-controlled greenhouse operation the nonprofit was developing for Detroit’s east side under the for-profit entity RecoveryPark Farms Inc. It’s unclear how much of the intended investment they made or why they pulled out. “It’s been more than a decade since the idea for RecoveryPark was
A TALE OF TWO MALLS
BY KIRK PINHO
Investors back new hydroponic operation
DETROIT WATERFRONT
Business, environmental interests at odds over riverfront rules BY ANNALISE FRANK
The Detroit Regional Chamber and others are pushing back against parts of a proposed ordinance that’s aimed at preventing contaminant spills into the city’s waterways. Detroit City Council member Raquel Castañeda-López and environmental advocates initially announced what’s now called the Waterbody Protection Ordinance in February 2020. They were acting to fill legislative gaps exposed by a now-infamous dock collapse that sent materials from a contaminated site into the Detroit River. But some business stakeholders are concerned the legislation goes too far and will be “onerous” for property owners, as put by Bernard Parker III, director of local government relations for the chamber of commerce. It’s nothing new for environmental and business interests to clash in the regulatory arena.
Castañeda-López
Parker
Parker and an executive for Novibased Ginosko Development Co. were among those who spoke against parts of the proposal during public comment at a May 17 City Council committee meeting. City Council members will next discuss the ordinance in committee Monday, and Castañeda-López is hoping if things go well the legislation could be approved before the end of June. “This legislation is focused on protecting the Detroit River and protect-
ing Detroiters’ ability to drink clean water and so I think, what number can you put on that to quantify the cost of contaminating our river and people’s ability to drink clean water?” said Castañeda-López, who has been working with the Sierra Club, Great Lakes Environmental Law Center and others. “It’s unfortunate because from the research we’ve done it shows that this is a loophole in the legislation and so I would hope that businesses want to be good partners and make sure they’re being good neighbors...” The ordinance would change Chapter 8 of the Detroit City Code on building construction and property maintenance. It would impose requirements to maintain seawalls along waterbodies in Detroit — not just the Detroit River, but also the River Rouge and others. See WATERFRONT on Page 44
Waterfront apartment buildings for seniors, like 8330 On the River at 8330 E. Jefferson Ave., are not currently exempt from seawall registration and inspection regulations proposed in an ordinance that’s going through Detroit City Council. But the legislation may still be adjusted to take the burden off providers of senior and affordable housing along the river, according to council member Raquel Castañeda-López. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 3
REAL ESTATE INSIDER
Troy Marriott’s ownership on the line as loan workout sought The Detroit Marriott Troy is the latest key regional hotel to face foreclosure amid plummeting revenue during the COVID-19 panKirk demic, a chalPINHO lenge that has spanned the industry during the public health crisis. But there are signs that a workout
agreement could give the ownership group a lifeline to keep its hands on the 350-room hotel at 200 W. Big Beaver Road. The ownership group, which includes Hadidi Capital, has been late on a $48 million commercial mortgage-backed securities loan from Barclays since October and has a remaining balance of approximately $44.8 million, according to loan data posted to CoStar Group Inc., a Washington, D.C.-based real estate information service. Loan commentary said the loan
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was transferred to special servicing on Dec. 18 “due to imminent payment and maturity default,” and the loan on the 13-story, 31-year-old hotel matured Feb. 6. But although a foreclosure has been filed and a receiver has been
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requested, commentary updated last week says that Hadidi Capital and Barclays, through its special servicer, Midland Loan Services, are “working ... on proposed (maturity) extension through 4/30/2023 with (the) loan brought current and a 5 percent principal curtailment.” That “curtailment” could mean a number of different things, including a 5 percent reduction of the $44.8 million owed or bringing additional equity to the table to reduce it, or some combination thereof. “It has been a difficult year for everyone in the hospitality industry, ourselves included,” Gehad Hadidi, a member of the ownership group, said in an email last week to Crain’s. “However, the ownership group of the Troy Marriott are committed to Metro Detroit and to our assets in the market, including the Troy Marriott. We entered into good faith negotiations with the lender and are confident that a settlement is within reach that will result in our continued ownership of the property.” Hadidi declined further comment. The company, which has offices in Rochester Hills and New York, paid $68 million for the property in January 2016, according to CoStar. It also owns the Hotel Indigo in Traverse City, as well as properties in New York City, according to the company’s website. The last appraisal from February gives the hotel a value of $57.5 million. Gross income plunged a little over 69 percent from about $18.4 million to just $5.7 million last year as the occupancy rate fell from 57 percent to 27 percent. COVID wasn’t the only thing that shook things up at the hotel. Food and beverage revenue dropped precipitously from $6.15 million in 2018 to just $1.6 million in 2019, a 74-percent decline. Some
“WE ENTERED INTO GOOD FAITH NEGOTIATIONS WITH THE LENDER AND ARE CONFIDENT THAT A SETTLEMENT IS WITHIN REACH THAT WILL RESULT IN OUR CONTINUED OWNERSHIP OF THE PROPERTY.” — Gehad Hadidi, member, ownership group
of that decline in 2019 was made up in room revenue, which bounced from $13.8 million in 2018 to $16.7 million in 2019, an increase of about 20.7 percent. In March, the owner of the Westin Book Cadillac in downtown Detroit told Crain’s he was bracing for foreclosure on his iconic 453-room hotel as well, having fallen behind on $77 million in CMBS debt.
Tongue twister: Axis joins Exis Longtime tenant rep broker Steve Morris’ Farmington Hills-based Axis Advisors LLC has teamed up with Exis Global Tenant Representation. As part of the agreement, Axis Advisors gains access to Exis’ marketing and technology while Exis gets a boots-on-the-ground presence in the Detroit and suburban markets. “This partnership allows us to better offer quality tenant rep services to a number of Detroit companies who have global office locations,” Morris, managing principal of Axis Advisors, said in a press release. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
PEOPLE
Calley to succeed Fowler as CEO of SBAM as of Dec. 31 BY CHAD LIVENGOOD
Rob Fowler is preparing to hand over the reins of the Small Business Association of Michigan to a handpicked successor after 21 years with the Lansing-based advocacy organization, the last 19 of which he served as CEO. SBAM’s board on Friday formally accepted Fowler’s plans to retire Dec. 31 and voted to promote the association’s president, Brian Calley, to the CEO job after Fowler departs. It wasn’t an unexpected succession plan. Calley, a former lieutenant governor who lost a Republican primary bid for governor in 2018, joined SBAM in January 2019 immediately after leaving office and took the title of president, while Fowler retained the CEO title on his business cards. “I don’t think this is a terribly wellkept secret that this was the succession plan from the day Brian joined us,” Fowler told Crain’s. “It has played out exactly — and I mean exactly — as I hoped it would. I cannot literally think of a single person who’s more qualified to take over this organization than Brian Calley.” Since arriving at SBAM in 2000, Fowler is credited with transforming the organization from a 5,000-member trade group with a small voice at the Capitol to a 28,000-member organization that has an increasingly influential role in shaping policy that affects business and education. “I said the other day and I may say it again to some of our volunteers: I think maybe my greatest contribution to the organization is to get it to a place where we could actually attract the talent that is Brian Calley,” Fowler said. Fowler said SBAM has waded into issues he couldn’t have fathomed two decades ago and during a period of time when the organization “lobbied by press release.” “That doesn’t really work all that well,” Fowler said with a chuckle. SBAM has approached small-business advocacy through a “blocking and tackling” strategy that engaged the organization in multiple policy issues to help establish and maintain long-lasting relationships in state government, Fowler said. “If you would have told me at the beginning that I would have been involved in issues of child care or transportation or education policy or even health care policy in the ways that I have been, I don’t know if I would have seen that coming,” he said. “But circumstances draw you into those things.” Fowler’s year-end retirement caps a 35-year career in small business advocacy. He came to Michigan from the Cleveland Chamber of Commerce and prior to that he worked at Indiana’s state chamber of commerce. He ran the small business advocacy division of each of those groups. The past 15 months of the coronavirus pandemic have been some of the most engaging, Fowler said. During the pandemic, Fowler and Calley have become almost television anchors of sorts, hosting a twice-weekly video Zoom call with SBAM members on Facebook Live known as the Small Business Briefing. During the briefing, which started out as a daily video chat, SBAM’s two leaders would update viewers on the ever-changing executive orders from Gov. Gretchen Whitmer, public health orders from state and local agencies
Calley
Fowler
and workplace rules from the Michigan Occupational Safety and Health Administration. They would invite business owners on to talk about how they were adjusting and share tips, best practices and
the occasional complaint about the government’s handling of the crisis. “We still have a pretty substantial audience, so that tells me there continues to be a need for it,” Fowler said. “But that was all trying to be responsive and supportive to small businesses.” In the early days, weeks and months of the pandemic last year, all employees at SBAM shifted their work to answering questions and trouble-shooting problems member businesses were having that ranged from the vague definitions of an essential business in Whitmer’s initial stay-at-home order to understanding how to work within indoor capacity limits.
“People really did turn to their association — whatever, trade associations and others — for answers,” Fowler said. “It’s not quite so apparent during the good times. But bad times really make it apparent.” In Lansing’s policymaking circles, SBAM under Fowler’s leadership has always been seen as more bipartisan than some of the other business groups, such as the Michigan Chamber of Commerce, which leans decisively conservative in its policy advocacy and Republican in its politics. Democratic Gov. Whitmer has had Calley appear at a handful of press conferences and news events with her
since taking office. Calley has forged a relationship with his successor, Lt. Gov. Garlin Gilchrist II. Calley, 44, who previously served two terms in the House of Representatives, said SBAM’s approach to being “strategically and intentionally bipartisan” is what drew him to make the career move into the Lansing lobby and trade association corps. Fowler, 61, said he has no post-retirement plans at this point. “I’m going to end strong and then figure it out,” he said. Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood
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MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 5
NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS
COMMENTARY
CRAIN’S VOICES
Higher ed plan would pick winners and losers
T
he higher education funding plan floated by House Republicans would do more damage to the bottom line of Michigan’s flagship research institutions like the University of Michigan and Wayne State University than advertised. In the first year, UM-Ann Arbor and Wayne State would take haircuts of 12.2 percent and 4 percent, respectively. By the third year of the plan, the targeted disinvestment in those universities would dramatically compound as taxpayer support is redirected to schools with a higher percentage of in-state students. If enacted, taxpayer support of UM would fall by 38 percent from its current levels, according to an analysis by the nonpartisan House Fiscal Agency. The House Republicans’ cut amounts to $122 million fewer tax dollars flowing annually from Lansing to Ann Arbor by the 2024 fiscal year, according to the House Fiscal Agency. Wayne State’s bloodbath would be less severe, at least on paper. The three-year budget plan cuts the Detroit-based university’s taxpayer support by nearly 14 percent by 2024, a $28 million annual reduction in state funding. Based on its non-resident student enrollment, Michigan State University would see a slight increase less than normal inflation. Western Michigan University, where about 20 percent of students are not Michigan residents, also would see a stagnant increase of 2 percent in funding over three years. The cuts to UM are so dramatic that, by the third year, MSU would leap over its Big Ten rival in annual state funding. Grand Valley State University, Oakland University, Central MichiIT’S BEEN A LONG gan University would be among the clear AND WINDING winners with threeyear increases of 33 ROAD OF to 35 percent. DISINVESTMENT percent Leaders of GVSU and OU, two schools IN PUBLIC that have grown conUNIVERSITIES. siderably over the past two decades, have argued there should be a minimum per-student amount of funding for universities. House Republicans have responded with a policy prescription that has state tax dollars follow the resident student, while glossing over each institution’s actual needs and contributions to the state’s economy. “The overwhelming majority of universities are doing quite well — they’re getting good increases,” said Thomas Albert, chairman of the House Appropriations Committee. “And I think that’s a reflection that they’ve been underfunded for decades now.” That’s one way to spin it. But the House GOP-authored plan doesn’t meaningfully increase taxpayer investment in Michigan’s 15 public universities — and just eight schools would arguably be doing better. After three years, the $1.46 billion higher education budget would grow by just $12.4 million, less than 1 percent. Since 2002, taxpayer support of higher education has fallen by $352 million annually from
Chad
LIVENGOOD
$1.81 billion at the end of the Engler administration. It’s been a long and winding road of disinvestment in public universities since, resulting in tuition hikes that doubled the cost of college. Albert, R-Lowell, said the spending plan aims to get rid of special deals for certain universities that have been baked into their state funding without any formulaic approach. But the formula Albert’s subcommittee came up with had to be tinkered with in order to not maim three Upper Peninsula schools: Northern Michigan University, Lake Superior State University and Michigan Tech. The House Appropriations Committee’s revised formula held those three schools with sizeable populations of out-of-state students harmless from cuts. “Those are unique institutions, and I don’t know if they could have really handled a cut, especially to the magnitude that they were going to have,” Albert said. Last week, a group of four prominent business leaders pushed back against the House GOP’s funding formula. Recently retired Ford Motor Co. CEO Jim Hackett joined Dow Inc. president and CFO Howard Ungerleider, Emagine co-founder and chairman Paul Glantz and Mike Jandernoa, 42 North Partners founder and chairman and former Perrigo CEO, in denouncing deep cuts for UM and Wayne State during a video conference hosted by the University Research Corridor, which represents UM, MSU and WSU. Hackett, a former Steelcase CEO who did a stint in Ann Arbor as UM’s interim athletic director, challenged the premise of House Republicans that Michigan taxpayers are subsidizing the costs for out-of-state students. “It’s the opposite,” Hackett said. “The higher inflated out-of-state tuition actually helps us keep the cost of the in-state tuition down.” This isn’t the first time lawmakers, particular less-experienced policymakers in the House, have sought to create a one-size-fits all approach to university funding. There’s no sign that the House GOP plan for radically changing the way public universities are funded is going to gain legs this term. The Senate is always an obstacle and the upper chamber’s higher ed budget is more in line with Gov. Gretchen Whitmer’s proposal of a modest 2 percent across-the-board increase for all universities. But in this era of term limits, House members like Albert tend to make their way to the Senate, where policies like this funding plan have a higher chance of eventually taking root. Remember: As Albert himself said, he’s committed to making these changes deliberately, and over time. Contact: clivengood@crain.com; (313) 446-1654; @ChadLivengood
Let’s not make it harder to vote in Michigan BY BARBARA MCQUADE
For weeks I’ve been following talk in Lansing about a package of bills to prevent fraud in our elections, but this proposed legislation seems like a solution in search of a problem. These 39 bills would enact voting restrictions that sponsors McQuade say will make “it harder to cheat” in elections, despite the absence of any evidence of fraud in the 2020 election. Unfounded claims of fraud are being used as a pretext for changes to election laws that would actually make it harder to vote. As a former prosecutor, I base decisions on facts. Let’s look at what happened in 2020. First, during a pandemic when people were encouraged to stay home and keep their distance, millions of voters cast ballots safely. In Michigan, we saw record voter turnout. More than 5 million registered voters cast ballots, including more than 3 million who voted by absentee ballot. Second, let’s look at how election officials did their jobs. Local clerks stepped up to meet new challenges. Recall that this was the first presidential election after voters in 2018 passed Proposal Three, which amended the state constitution to guarantee every voter the right to cast an absentee ballot. In light of the challenges posed by the pandemic, the timing could not have been better, and clerks rose to the occasion to enable voters to use the absentee voting option. Seniors have long enjoyed the convenience of absentee voting, and I was glad that the rest of my family and I could do the same this time around. We placed our own absentee ballots in a drop box after hours not far from our home, and we were relieved to avoid voting in person and exposing ourselves to risk of COVID-19 infection. Third, let’s evaluate evidence of election fraud. Courts in Michigan rejected allegations of fraud in the 2020 election for lack of any evidence. More than 250 election audits were conducted and every one affirmed the integrity of the election. In short, nothing went wrong in the 2020 election in Michigan. And yet, there are efforts afoot to make it harder to vote. Voting is a right. Voting is not a privilege. That’s why we have a responsibility to enable citizens to exercise their right to vote. It has taken us awhile to get there and, as a nation, we’re still working on it. Until 1920, women were denied their right to vote. Until the Voting Rights Act of 1965, people of color were routinely denied their right to vote. Now, a nationwide movement is seeking to pass legisla-
Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 6 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
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, Barbara McQuade, served as U.S. Attorney for the Eastern District of Michigan from 2010 to 2017. She is currently a professor of law at the University of Michigan and a legal analyst for NBC News and MSNBC.
tion to make it harder for some people to vote. Our goal should be to move forward, not backward. The package of bills being debated in Lansing would take us in the wrong direction. These bills would create obstacles that would make it more difficult for certain voters to cast ballots. For example, the proposed bills would forbid the Secretary of State from mailing absentee ballot applications to all voters or posting the application on its website. The bills would also require voters to include with their absentee ballot application a copy of their ID, a step that could pose a roadblock for voters without access to a photocopier, and a requirement that increases a voter’s risk of identity theft. The bills would curtail the use of drop boxes, forcing voters to drive extra miles to a clerk’s office or rely on the U.S. Postal Service, which has experienced delays in delivering ballots. The bills would also prohibit clerks from processing absentee ballots before Election Day, despite the recommendation of the Michigan Association of Municipal Clerks to permit this practice to avoid delays in election results. Other states allow early processing and were able to provide election results in 2020 before Michigan. Cynics suggest that this whole effort to combat election fraud is just a smokescreen to make it more difficult to vote and discourage the kind of turnout we saw in 2020 to favor the political fortunes of those who are advocating for change. Regardless of motive, the changes being proposed in Lansing make no sense. Rather than eliminating steps that enabled high voter turnout, we should be codifying them into law so everyone’s voice is safely heard on Election Day. And, we should be listening to the men and women on the front lines who conduct our elections. It’s time for Michigan lawmakers to stop pretending to fix problems that don’t exist and honor the right to vote.
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.
COMMENTARY
For Crain’s, a retirement and a changing of the guard
T
he retirement of a respected veteran reporter this week is ushering in a changing of the guard of sorts at Crain’s Detroit Business. Kelley Senior reportROOT er Jay Greene, who covers health care, energy and the environment, is heading for warmer climes in Florida after 24 years with Crain Communications, including the last 13 years with Crain’s Detroit. Prior to that, he spent 11 years covering nonprofit hospitals at Crain’s Modern Healthcare. We’ll miss his deep sourcing and insight that set a standard for health coverage in metro Detroit. His dispatches during the COVID-19 pandemic helped make sense of chaotic times for Michigan hospitals as they struggled to cope with a frightening new virus. Jay’s willingness to write about his own experiences — from his first eye-watering COVID test to the hopeful sting of a Pfizer vaccine — struck a personal note with readers. Just this month, he donned protective gear to tour a COVID unit at Beaumont Hospital to describe firsthand the impact of the coronavirus’ deadly resurgence. His shoes will be hard to fill after a total of 40 years covering health care. But I’m confident his successor — Crain’s senior reporter Dustin Walsh — is fully up to the task. Dustin, a 12-year Crain’s veteran who currently covers manufacturing and the economy, is stepping into the beat at a critical time. A newly vaccinated nation is emerging from the pandemic facing much uncertainty about the future of health care. From patients to providers to insurers, the industry has been upended. How will metro Detroit hospital systems adapt to new financial and operational challenges? Who’s investing in scientific research, and why? What’s being done to address health care inequities laid bare by COVID? All are important topics for Crain’s and for Dustin, who brings a keen eye for economic analysis to every assignment. Finally, moving into the key manufacturing and suppliers beat will be Kurt Nagl, a talented reporter who has covered a wide variety of topics since joining Crain’s in 2017, most recently higher education and the business of sports. He’ll have his hands full covering an industry that’s also undergoing pandemic-related change, including critical supply chain interruptions and a disrupted workforce that’s making some jobs tough to fill. I look forward to what Dustin and Kurt will bring to their new roles. And Jay’s byline won’t disappear entirely from Crain’s pages, as he will contribute occasional freelance pieces to supplement our coverage. As always, we invite your feedback and invite you to contact us with story ideas and tips — you can find all staff contacts at crainsdetroit.com/staff. Thank you for reading!
Julie Dunn-Simmonds helps Jay Greene with his PPE fit test during a tour at Beaumont Hospital in Royal Oak. | CYDNI ELLEDGE FOR CRAIN’S DETROIT BUSINESS
Jay Greene (from left), Dustin Walsh and Kurt Nagl
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5/12/21BUSINESS 9:44 AM | 7 MAY 24, 2021 | CRAIN’S DETROIT
BUSINESS EDUCATION
‘OUR LIVES HAVE CHANGED’
With online learning now king, Michigan business schools focus on flexibility, diversity
BY KURT NAGL If Michigan business schools want en-
rollment to rebound this fall, they will have to apply lessons from the last year and a half on the importance of flexibility. Many Master of Business Administration programs suffered declines during the pandemic. Students deferred degrees for a variety of reasons including economic uncertainty, employers pausing financial assistance and the general strain of work and family life. Higher education has traditionally been slow moving when it comes to big infrastructural changes. Not so any longer, at least for those hoping to stay competitive. Online MBA programs compared to traditional classes were growing in popularity in recent years, but digital delivery has become the default — and it could stay that way long after the COVID-19 pandemic.
8 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
“OUR STUDENTS ARE SEEKING MORE ONLINE OPTIONS BECAUSE THEIR LIVES HAVE CHANGED. THEIR KIDS ARE AT HOME. THEIR JOBS ARE REMOTE NOW.” — Kiantee Jones, assistant dean of graduate programs at Wayne State University’s Mike Ilitch School of Business
“Our lives have changed,” said Kiantee Jones, assistant dean of graduate programs at Wayne State University’s Mike Ilitch School of Business. “Our students are seeking more online options because their lives have changed. Their kids are at home. Their jobs are remote now.” If not for online classes, Keely Crimando, 30, would not be pursuing an MBA. As a local mortgage banker and mother of a 2-year-old, going to in-person classes regularly was not feasible. She started taking graduate classes at Wayne State in 2016 and has been chipping away at the degree since. She has two classes left and hopes the MBA will give her a leg up in the hunt for a new job in her field. “I’ve done everything online,” Crimando said. “Having this mode
helps women a lot. We can study when the kids are in bed. We can study in between driving to soccer practice. Because mothers are expected to do so much, it can be very difficult.” More than 80 percent of MBA programs nationwide saw an increase in applications last year, according to the Graduate Management Admission Council, but the deferment rate increased from 2 percent to 6 percent. There is typically a lull in applications heading into summer before a rush in the fall, but the pandemic stunted enrollment last September. Business schools are banking on students like Crimando, whose situations remain in flux, to pick back up on their education. While still early in the cycle, applications are up 37 percent at
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Crimando
Wayne State, where graduate enrollment last fall dropped 4 percent to 1,356 students. Only around 20 percent of MBA classes are expected to be in person, Jones said, but that could change in the next few months. “I don’t think it’s going to be back to business as usual,” Jones said. “Flexibility. Right now, that’s really the word of the day.” Even schools that carved out a niche for online learning starting in the late 1990s had to adapt quickly. Troy-based Walsh College, which caters to working professionals, invested $300,000 for 14 “connected” classrooms during the pandemic. Students wanted more synchronous online options, so the college installed high quality microphones and cameras that track teachers around the classroom to make les-
sons more immersive. Teachers can look out at their students via display monitors. “We’ve had a strong online component previously, but I think that’ll be here to stay,” said Jenny Tatsak, chair of business communication, management and marketing at Walsh. “We are seeing the need for different types of connection.”
Online bubble The boom in online learning hasn’t necessarily meant a boom in enrollment for schools that specialize in it. Student headcount at Walsh’s graduate business programs fell 6 percent to 567 last fall. Grand Rapids-based Davenport University, which enrolls around 600 graduate students, saw a dou-
Tatsak
ble-digit percentage decline due to the pandemic. Owosso-based Baker College, which has around 450 graduate students, has seen overall enrollment reduced by half since 2017. The reason: Fewer customers and more competition. The number of people pursuing a traditional higher education path continues to shrink amid the proliferation of trade schools, certificates and other specialty programs that promote career advancement at a discount. Once a novelty, online learning is now a major growth area for smaller independent schools and large universities alike. “A number of schools have gotten in just recently,” said David Lawrence, Davenport’s vice president of admissions and strategic partnerships. “If you’ve had 20 years of refinement of the (online) classes, that’s still a significant advantage.” At Baker, MBA programs were fully online even before the pandemic, said Na Li, dean of the college of business. Its model centered on students juggling work and family by offering MBA degrees as quickly as one year or as incrementally as desired. Students no longer have to venture far from home for a similar offering. “We used to attract students from across the nation and even from abroad, but now the higher ed industry trend is that students go to college within 50 miles of their home,” Li said. Many top-ranked schools were among the last to embrace the online learning revolution. The University of Michigan’s Ross School of Business launched its online MBA program in 2019 and quickly saw big growth, jumping from 72 students to 134 last fall, while enrollment for its traditional MBA program fell sharply from 421 to 358 students. Michigan Ross has also expanded its portfolio of one-year master’s programs, rolling out a master of business analytics program earlier this month. “This is one of a few areas of growth,” said David Wooten, associate dean for one-year master’s programs. “Primarily, we’re looking at what the market has to say. ... It’s gotten pretty common in the industry to have these programs for people who want to spend a year tooling up.” Nivedita Mukherji, associate dean in charge of the MBA pro-
Lawrence
Li
“WHAT WE’VE BEEN NOTICING IS THAT STUDENTS MAY SAY, ‘WE LIKE IN-PERSON PROGRAMS,’ BUT IN TERMS OF THEIR ENROLLMENT, WE SEE THAT ONLINE COURSES ARE ALWAYS MORE POPULAR.” — Nivedita Mukherji, associate dean in charge of the MBA program at Oakland University
gram at Oakland University in Rochester Hills, said the school offered a fully online MBA for the first time last fall. In the works before the pandemic, the program’s launch proved to be good timing. “What we’ve been noticing is that students may say, ‘We like in-person programs,’ but in terms of their enrollment, we see that online courses are always more popular,” she said. OU saw an increase of eight MBA students in the fall for a total of 272. Again, flexible offerings are what will keep students coming through the door, Mukherji said. “We think, talking to other business school leaders, talking to corporations and our board of visitors, who are leaders in companies around the area — everyone seems to suggest that education is going to be consumed by students in smaller chunks,” she said. “Students are busy. They are interested in targeted skill development.”
Corporate influence As the medium of learning changes to fulfill student needs, the curriculum also is being adapted to meet corporate demands. Diversity, equity and inclusion initiatives were brought to the forefront last summer during protests over police brutality and the police killing of George Floyd in Minneapolis. Corporations faced increased scrutiny of their hiring practices and were challenged to create more equitable work environments, and many vowed to make improvements. Walsh took feedback from some of the largest companies that employ its students — including General Motors Co., Stellantis, Ford Motor Co., Comerica Bank and Blue Cross Blue Shield of Michigan — and revamped its curriculum with an emphasis on leader-
Wooten
Mukherji
ship and communication skills, and a new diversity, equity and inclusion course launching this fall as a mandatory part of the MBA program. “We are preparing our students to be able to lead those conversations,” Tatsak said. OU has had a diversity, equity and inclusion elective for years but has recently added faculty to teach more sections of the course and introduced it for the first time last year in the executive MBA, a 21-month program geared toward high-performing professionals. “Students seem to be really interested in that, so I foresee us doing more there,” Mukherji said. Wayne State has tried to widen its recruitment of students and tap into a more diverse pool of candidates, both to boost enrollment and address the needs of companies, Jones said. “What I’m seeing is a lot more companies want to market to diverse applicants because they see the need to have that in their companies to be successful,” she said. Corporations and business schools have long had a symbiotic relationship that helps schools stay relevant and corporations develop a more reliable pipeline of well-prepared employees. Many MBA students in Michigan are sponsored by employers, although companies including Ford and Stellantis temporarily halted financial support at the start of the pandemic. “When the pandemic first hit, everything was just taken and cut,” Jones said. “Now we’re seeing companies are coming back around.” At Michigan State University’s Broad College of Business, where the number of full-time MBA students last fall slipped to 140 from 149 last year mainly because of a drop in international students, there is uncertainty and optimism. “We have heard that some potential students and their employers are financially hesitant as they continue to navigate the impact of COVID, but many others are already fully committed to start this fall,” Cheri DeClercq, assistant dean of graduate and MBA programs at MSU, said in an email. “As the situation in Michigan continues to improve, I believe many who are undecided will choose to move forward this year rather than delay.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl
MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 9
TECHNOLOGY
Data company ProQuest to be acquired in $5.3 billion deal Firm has about 550 employees in Ann Arbor area; roots of company go back to microfilm BY NICK MANES
An Ann Arbor data company whose roots go back to microfilm has been sold in a multibillion-dollar deal. Ann Arbor software and information company ProQuest LLC is set to be acquired by British technology firm Clarivate PLC in a $5.3 billion deal, according to a Monday morning news release. Clarivate (NYSE: CLVT) said it will acquire ProQuest from private investment firm Cambridge Information Group in a deal that, pending regulatory approvals, would close in the third quarter of this year, according to the release. The deal, which includes $4 billion in cash and $1.3 billion in equity, would add more than $875 million in revenue to Clarivate’s balance sheet, the company said in the release. ProQuest’s roots go back to the 1930s as University Microfilms, which provided microfilm archives, primarily for libraries, a company founded by entrepreneur Eugene Power. University Microfilms was later sold to Bell & Howell and rebranded in 2001 as ProQuest. Its primary products now include software, data and analytics for academic, research and national institutions. The company says its content collections total 6 billion pages of material. ProQuest was acquired by Cam-
ProQuest is headquarterd in Ann Arbor. | COSTAR GROUP INC.
bridge Information Group for $222 million in 2007. ProQuest has 2,700 employees globally, with about 550 in Ann Arbor, according to Lisa Hulme, a spokesperson for Clarivate. Once the deal closes, all will become employees of Clarivate, Hulme wrote in an email to Crain’s. “But until we close, we will operate
separately and independently,” Hulme wrote. “Only then will we begin to integrate both organizations, identifying both opportunities for growth and career development as well as possible role overlaps. In the event of any role eliminations, both Clarivate and ProQuest will ensure that all colleagues are treated fairly and with dignity and
respect, as aligned to both companies’ core values.” Once the transaction closes, ProQuest Chairman Andy Snyder, who also serves as CEO of Cambridge Information Group, will become vice chairman of the Clarivate board of directors. Additionally, Michael Angelakis, chairman and CEO of Cambridge Informa-
tion partner firm Atairos, will join the Clarivate board. No other leadership changes were announced. “I have seen ProQuest evolve to meet our customers’ ever-changing needs over the last several decades and fully understand that the challenges and opportunities they face have never been greater,” Snyder said in the release. “I am confident that the company will continue to have the resources required to maintain the impressive track record of innovation that our customers count on — to create a world leading organization in research and innovation.” “Clarivate and ProQuest are highly complementary businesses, each with a rich and storied heritage,” Jerre Stead, executive chairman and CEO of Clarivate, said in the release. “We share the goal to accelerate innovation through research and knowledge sharing and together we will enable our customers to solve the world’s most complex challenges with content dating back centuries, and technologies that address the needs of 21st century customers.” Clarivate, which has a total market capitalization of about $17.8 billion, saw its stock trading up more than 2 percent Monday morning, with a share trading at more than $29. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes SPONSORED CONTENT
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s higher education emerges from the COVID-19 pandemic and returns to “normal,” one point is abundantly clear: In order to better serve students and employers, higher education needs to deliver competencies beyond academic knowledge and skills. A transformational education is certainly the largest part of our mission, but being “book smart” isn’t enough anymore. Instead, we must be more proactive in ensuring student success as a part of the college learning experience, which leads to success for business, industries and our communities. One advantage that community colleges have is regular dialogue with area business and industry leaders to update and modify our curriculum and add programs to meet their demands. While the technical abilities, hands-on skills and overall knowledge of our graduates are impressive, many of those leaders have expressed a desire for something more. Their desire can be summarized as follows: “We need new employees to be able to interact well with customers and co-workers right from the start to help our business thrive. Today, we need ‘professional smarts,’ as well as ‘book smarts,’ more than ever.” In short, they need entry-level employees
10 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
who possess the critical skills to work effectively in a fast-paced, high-pressure global business environment.
Dr. Glenn R. Cerny, MBA, Ed.D., is President of Schoolcraft College. With more than 30 years of experience in higher education, he has focused on serving community colleges and supporting the mission of these institutions to help students of all backgrounds access high-quality education as a means of advancement and a bridge to professional success.
To answer that call, we’ve applied the same rigor to develop an academic curriculum to create Reality Ready,® an initiative that helps Schoolcraft College students excel in the workforce. Reality Ready® boosts proficiency in four key areas: Emotional Intelligence; Conflict Resolution; Professional and Personal Communication; and
Networking and Professionalism. Through an intensive, interactive all-day program, students learn intellectual and behavioral skills that result in the well-rounded individuals employers are seeking. The areas presented in Reality Ready® mirror and build upon the eight Core Abilities established by Schoolcraft College. The Core Abilities are broad outcomes or skills that every graduate is expected to achieve. From a practical standpoint, these universal skills are transferable from one job to the next. Education and serving the community define the mission of higher learning. During the last year-plus, we’ve all had to adapt quickly to create solutions to ensure success for our students. It’s truly been a post-graduate-level course for all of us, and we’ll all carry forward the lessons learned. The world has become more challenging. We need to make sure that when our students depart our halls, they have the complete academic and practical abilities needed to truly succeed.
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CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
1 2 3
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
PENSKE CORP., Bloomfield Hills 48302-0954 248-648-2000; penske.com
Roger Penske Sr. chairman
$30,000.0
-6.3%
NA NA
Retail automotive, truck leasing and logistics, motorsports racing
ILITCH HOLDINGS INC., Detroit 48201 313-471-6600; ilitchcompanies.com
Christopher Ilitch president and CEO
$4,100.0 1
5.1%
NA 24,000 1
Food, sports and entertainment and real estate development industries
PLASTIPAK HOLDINGS INC., Plymouth 48170
William Young president and CEO Michael Plotzke CFO, treasurer and senior vice president of finance
$2,900.0
-6.7%
650 5,900
Manufacturer of rigid plastic containers and recycled plastic material for the consumer products industry.
4 5 6
PISTON GROUP ,2 Southfield 48075 (313) 541-8674; pistongroup.com
Vinnie Johnson founder, chairman and CEO
$2,876.3
-0.1%
865 12,631
Automotive supplier
MOROUN FAMILY HOLDINGS ,3 Warren 48089
NA
$2,746.1 1
-4.2%
NA NA
Ambassador Bridge and various trucking and logistics companies
H.W. KAUFMAN GROUP INC./BURNS & WILCOX LTD., Farmington
Alan Kaufman chairman, president and CEO Daniel Kaufman EVP, COO
$2,450.0
2.1%
257 1,826
Insurance services including distribution, brokerage, underwriting, reinsurance, real estate, financing, inspections, audits, risk management and third-party claims administration
7 8
THE SUBURBAN COLLECTION, Troy 48084
David T. Fischer Jr. president
$2,421.1
-11.3%
2,537 2,958
Automobile dealerships and related businesses
BARTON MALOW HOLDINGS LLC, Southfield 48034
Ryan Maibach president and CEO
$2,336.5
23.0%
1,052 2,200
General contracting, construction management, design/build, engineer-procure-construct, integrated project delivery, selfperform services: civil, concrete, rigging and interiors
SERRA AUTOMOTIVE INC., Fenton 48430
Joseph Serra president and CEO
$2,195.1
7.6%
389 2,118
Automobile dealership
VICTORY AUTOMOTIVE GROUP INC., Canton Township 48188
Jeffrey Cappo president
$2,094.5 4
-1.3%
NA NA
Automotive dealership
WALBRIDGE, Detroit 48226
Michael Haller CEO John Rakolta III president
$1,912.3
5.7%
500 1,500
Construction: general contracting, design-build, construction management, engineer/procure/construct, virtual design, selfperform
BELFOR HOLDINGS INC. ,5 Birmingham 48009
Sheldon Yellen CEO
$1,778.9
-1.8%
1,312 7,733
Property restoration
SOAVE ENTERPRISES LLC, Detroit 48207 313-567-7000; soave.com
Anthony Soave CEO
$1,688.3
0.9%
642 2,128
Diversified management holding company
BRIDGEWATER INTERIORS LLC, Detroit 48209 313-842-3300; bridgewater-interiors.com
Ronald Hall Jr. president and CEO
$1,567.6
-23.6%
1,294 2,203
Automotive seating/interiors
LINEAGE LOGISTICS LLC , Novi 48377
Greg Lehmkuhl president and CEO
$1,440.0 6
0.0%
NA NA
Cold-storage warehousing and logistics
248-399-7500; mc-mc.com
MCNAUGHTON-MCKAY ELECTRIC CO., Madison Heights 48071
Donald Slominski Jr. CEO John Kuczmanski executive VP and CFO
$1,335.0
-11.9%
290 1,245
Electrical distribution
17 18
TRUCK HERO INC., Ann Arbor 48108 877-875-4376; truck-hero.com
Bill Reminder president and CEO
$1,305.0
7.9%
736 4,822
Automotive supplier
248-486-1900; feldmanauto.com
FELDMAN AUTOMOTIVE INC., New Hudson 48165
Jay Feldman chairman and CEO Dave Katarski COO/executive VP
$1,292.3
23.8%
1,078 1,078
Auto dealer
19 20 21 22
WOLVERINE PACKING CO., Detroit 48207 313-259-7500; wolverinepacking.com
Jim Bonahoom president
$1,291.3
-2.5%
750 NA
Wholesale meat packer and processor; wholesale meat, poultry and seafood distributor
THE DIEZ GROUP, Dearborn 48126
Gerald Diez chairman/CEO
$1,265.0 1
0.0%
NA NA
Aluminum and steel sales, processing, warehouse and logistics companies
LAFONTAINE AUTOMOTIVE GROUP, Highland Township 48357
Michael LaFontaine chairman and owner
$1,241.0
7.3%
1,332 1,549
Automobile dealerships - sales, service, parts and body shop.
GENERAL RV CENTER INC., Wixom 48393
Robert Baidas CEO Loren Baidas president
$1,222.0
18.3%
672 1,717
Recreational vehicle dealership
23 24 25 26 27 28 29 30
SYNCREON GLOBAL HOLDINGS LTD., Auburn Hills 48326
Brian Enright CEO
$1,203.0 6
11.4%
NA NA
Logistics services
CARHARTT INC., Dearborn 48126
Mark Valade chairman and CEO
$1,148.3
9.8%
616 NA
Apparel manufacturer
INTERNATIONAL AUTOMOTIVE COMPONENTS, Southfield 48034
Manfred Gingl CEO
$1,045.7 7
-4.9%
NA NA
Supplier of interior automotive components and systems including cockpits and overhead systems
LIPARI FOODS, Warren 48089 586-447-3500; liparifoods.com
Thom Lipari CEO
$1,032.9 1
-4.8%
NA NA
Wholesale food distribution
INTEVA PRODUCTS LLC, Troy 48084 248-655-8886; intevaproducts.com
Gerard Roose 8 president & CEO
$950.0
-64.8%
256 7,732
Automotive supplier of closure systems, interior systems, and motors and electronics.
U.S. FARATHANE, Auburn Hills 48326 248-754-7000; usfarathane.com
Andrew Greenlee president and CEO
$900.0
2.3%
1,932 5,420
Plastic injection molder, extruder, thermal compression molder
PROQUEST LLC ,9 Ann Arbor 48106 734-761-4700; proquest.com
Matti Shem-Tov CEO
$876.0
6.2%
NA NA
Educational technology
ATLAS OIL CO. , Taylor 48180 800-878-2000; atlasoil.com
Sam Simon founder and chairman
$843.0
-35.9%
136 389
Petroleum distribution, innovative fueling solutions
9 10 11 12 13 14 15 16
734-455-3600; plastipak.com
586-939-7000
Hills 48334 248-932-9000; hwkaufman.com
877-471-7100; suburbancollection.com
248-436-5000; bartonmalow.com
810-936-2730; serrausa.com
734-495-3500; victoryautomotivegroup.com
313-963-8000; walbridge.com
248-594-1144; belfor.com
800-678-7271; lineagelogistics.com
(313) 491-1200; thediezgroup.com 248-887-4747; thefamilydeal.com
248-349-0900; generalrv.com
248-377-4700; syncreon.com
313-271-8460; carhartt.com
248-455-7000; iacgroup.com
$32,000.0 1 $3,900.0
$3,109.1
$2,880.0
$2,867.5 1
$2,400.0
$2,730.8 $1,900.0
$2,039.9
$2,122.1 4
$1,810.0
$1,812.4 $1,672.8 $2,051.9
$1,440.0 6
$1,515.0
$1,210.0 $1,043.8
$1,324.0
$1,265.0 1
$1,156.6 $1,033.0
$1,080.0 6
$1,045.5
$1,100.0 7 $1,085.0
$2,700.0 1 $880.0
$825.0 1 $1,314.7
Researched by Sonya D. Hill: shill@crain.com | This list of privately held companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Livingston and Washtenaw counties that do not have stock traded on
a public exchange. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available. NOTES: 1. Crain's estimate. 2. Holding company for Piston Automotive, Irvin Automotive, Detroit Thermal Systems and Airea. 3. Chairman, Manuel "Matty" Moroun died July 12 at the age of 93. 4. Automotive News. 5. Sold to New York private equity firm, American Securities LLC in June. 6. Estimate from Transport Topics Top 50 Logistics Companies. 7. Crain's estimate. North American revenue. 8. Assumed the role of president in November. Will succeeded Lon Offenbacher in 2021. 9. Clarivate plc announced a definitive agreement on May 17 to acquire ProQuest LLC.
Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 23
CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
31 32 33 34 35 36 37 37 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
NEAPCO HOLDINGS LLC, Farmington Hills 48331
Kenneth Hopkins president and CEO
$779.0
-8.6%
784 2,977
Designs, manufactures and distributes driveline systems and service parts
AMERISURE MUTUAL INSURANCE CO., Farmington Hills 48331
Gregory J. Crabb president and CEO
$754.9
-10.1%
304 671
Property and casualty insurance company
PLANTE MORAN PLLC, Southfield 48075
James Proppe managing partner
$747.7
8.8%
1,332 3,461
Accounting and management consulting firm
248-855-5556; orleansintl.com
ORLEANS INTERNATIONAL INC., Farmington Hills 48334
Earl Tushman president/CEO Larry Tushman VP/secretary
$729.0
28.8%
28 33
Meat importing and trading
KENWAL STEEL CORP., Dearborn 48126
Stephen Eisenberg 3 chairman and CEO
$620.0
-33.3%
194 296
Steel service center
UNITED ROAD SERVICES INC., Plymouth 48170
Mark Anderson 4 president and CEO
$576.8 1
-19.1%
NA NA
Vehicle transportation and logistics
NYX INC., Livonia 48150 734-462-2385; nyxinc.com
Jatinder-Bir Sandhu CEO
$530.0
-4.5%
NA NA
Automotive supplier specializing in plastic interiors and sub-system components
PVS CHEMICALS INC., Detroit 48213 313-921-1200; pvschemicals.com
David Nicholson president and CEO
$530.0
-12.4%
250 1,125
Manufacturer, marketer and distributor of industrial chemicals
FISHER DYNAMICS, St. Clair Shores 48082
Alfred Fisher III CEO
$510.5
$510.5 1
0.0%
NA NA
Automotive seating systems and mechanisms
MSX INTERNATIONAL INC., Detroit 48226
Frederick Minturn president and CEO
$526.0 1
$501.8 1
-4.6%
NA NA
Business process outsourcing service provider for global automotive retail segments and human capital managed service provider
CAMACO LLC, Farmington Hills 48331
Flavia De Veny president and CEO
$508.0 1
$484.6 1
-4.6%
NA NA
Automotive seat structure assemblies
ROUSH ENTERPRISES, Livonia 48150
Evan Lyall CEO
$465.0
-15.5%
3,200 3,200
Engineering, product development, and integration specialists; development and manufacturing of performance vehicles, aftermarket components and alternative fuel systems for fleet applications
DAKKOTA INTEGRATED SYSTEMS LLC, Brighton 48116
Andra Rush president and CEO
$455.0
-19.5%
1,200 2,300
Automotive assembler and sequencer
GOLLING AUTOMOTIVE GROUP, Bloomfield Hills 48302 248-334-3600; golling.com
Bill Golling president
$449.6 5
10.6%
NA NA
Automobile dealerships
ACRO SERVICE CORP., Livonia 48152 734-591-1100; acrocorp.com
Ron Shahani president and CEO
$446.5
14.3%
228 2,274
Staffing and human-resources services
HUNGRY HOWIE'S PIZZA & SUBS INC., Madison Heights 48071
Steven Jackson president and CEO
$442.0
11.3%
23 28
Pizza franchisor
SOUTHFIELD CHRYSLER DODGE JEEP RAM, Southfield 48034
Chris Snyder general manager
$441.0 1
$425.3 1
-3.6%
NA NA
Automobile dealerships
DETROIT LIONS INC., Allen Park 48101
Sheila Ford Hamp 6 owner and chair
$385.0 7
$411.0 7
6.8%
NA NA
National Football League franchise
BELLE TIRE DISTRIBUTORS INC., Allen Park 48101
Jack Lawless III CEO
$403.0
0.8%
1,550 2,400
Retailer of tires and automotive services
EATON STEEL BAR CO., Oak Park 48237 248-398-3434; eatonsteel.com
Mark Goodman Gary Goodman co-CEOs
$400.0
0.0%
325 325
Sales and support services company for hot-rolled and cold finished special bar quality steel products
ARISTEO CONSTRUCTION, Livonia 48150
Michelle Barton president
$392.5
-16.1%
316 401
General contractor with self-perform earthwork, concrete, steel fabrication & steel erection services
COMMERCIAL CONTRACTING CORP. , Auburn Hills 48326
Steve Fragnoli president and CEO
$390.8
39.5%
185 297
General contractor, construction manager, machinery installer, concrete, steel, carpentry & interiors
REDICO, Southfield 48076 248-827-1700; redico.com
Dale Watchowski CEO, COO and president Paul Stodulski CFO
$386.8
1,650 3,000
Commercial and residential real estate and senior housing
JIM RIEHL'S FRIENDLY AUTOMOTIVE GROUP INC., Warren 48093
James Riehl Jr. president and CEO
$376.6
5.2%
349 0
Automobile dealership
STRATEGIC STAFFING SOLUTIONS INC., Detroit 48226
Cindy Pasky founder, president and CEO
$347.6 8
-8.7%
NA NA
Consulting and staff augmentation services, vendor management programs, customized solution, call center technology and a domestic IT development center
MOTOR CITY ELECTRIC CO., Detroit 48213
Dale Wieczorek chairman, president and CEO
$341.4
5.0%
887 1,012
Electrical contractor
THE CHRISTMAN CO., Detroit 48202-3030 313-908-6060; christmanco.com
Joseph Luther, VP and general manager, Southeast Michigan operations; Mary LeFevre, regional VP of Business Development
$338.3
5.1%
92 NA
Construction management, general contracting, design/build, facilities planning and analysis, program management, real estate development, self-perform skilled construction trades
BARRICK ENTERPRISES INC., Royal Oak 48073
Robert Barrick president
$319.7
-36.9%
16 16
Petroleum wholesaler and retailer
ELDER AUTOMOTIVE GROUP, Troy 48083
Tony Elder president
$319.2 1
-3.6%
NA NA
Automotive dealerships
CLARK HILL PLC, Detroit 48226 313-965-8300; clarkhill.com
John Hensien CEO
$308.9
3.6%
232 1,073
Law firm
PRESTIGE AUTOMOTIVE, St. Clair Shores 48080 586-773-1550; prestigeautomotive.com
Gregory Jackson chairman and CEO
$308.6
-0.3%
150 NA
Automobile dealerships, real estate and insurance
GREAT EXPRESSIONS DENTAL CENTERS PC, Southfield 48034
Dan Hirschfeld CEO
$305.5 1
-10.4%
NA NA
Dental care, including general and preventive care, cosmetic, orthodontic and specialty dental services
248-669-6500; neapco.com
248-615-9000; amerisure.com
248-352-2500; plantemoran.com
313-739-1000; kenwal.com
734-947-7900; unitedroad.com
586-746-2000; fisherco.com
248-829-6042; msxi.com
248-442-6800; camacollc.com
734-779-7000; roush.com
517-993-7700; dakkota.com
248-414-3300; hungryhowies.com
248-354-2950; southfieldchrysler.com 313-216-4000; detroitlions.com
313-271-9400; belletire.com
734-427-9111; aristeo.com
248-209-0500; cccnetwork.com
586-979-8700; jimriehl.com
313-596-6900; strategicstaff.com
313-921-5300; mceco.com
248-549-3737; barrickent.com
248-585-4000; elderautogroup.com
248-203-1100; greatexpressions.com
$852.0
$840.0 1 $687.4 2 $566.0
$930.0 $713.0
$555.0 $605.0
$550.0
$565.0
$406.5 5 $390.6
$397.0 1
$400.0
$400.0 1
$467.8 $280.2
$358.1 $380.7
$325.3 $321.8
$507.1
$331.0 1 $298.2 $309.4
$341.0 1
NOTES: 1. Crain's estimate. 2. Fiscal year end June 30, 2019. 3. Succeeded Kenneth Eisenberg, effective Nov. 12. 4. Succeeded Kathleen McCann as CEO in January. 5. Automotive News. 6. Succeeded Martha Ford as owner and chair in June. 7. From Forbes. Net of stadium revenue used for debt payments. 8. Crain's estimate. 24 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
63 64 65
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
STEWART MANAGEMENT GROUP INC., Harper Woods 48225
Gordon Stewart president
$290.4 1
-3.5%
NA NA
Automobile dealerships
ABC APPLIANCE INC., Pontiac 48343
Gordon Hartunian chairman
$282.4 1
-4.0%
NA NA
Appliances, electronics and car audio, bedding and furniture
GEORGE W. AUCH CO. (DBA AUCH CONSTRUCTION), Pontiac 48342
Jeff Hamilton president Vince DeLeonardis CEO
$279.6
30.8%
120 120
General contractor and construction manager
66
THE MACOMB GROUP INC., Sterling Heights 48312
William McGivern Jr. CEO Keith Schatko EVP
$270.0
1.9%
140 402
Distributor of pipe, valves, fittings, heating and cooling, control and instrumentation, boilers, pumps repair, steam products, sanitary piping products, fire protection.
67
SMITHGROUP, Detroit 48226 313-983-3600; smithgroup.com
Jeffrey Hausman Detroit office director Mike Medici president and managing partner
$267.2
-8.0%
230 1,188
Architecture, engineering and planning
68 69
DICKINSON WRIGHT PLLC, Detroit 48226 313-223-3500; dickinsonwright.com
Michael Hammer CEO
$255.3
2.9%
346 898
Law firms
CHASE PLASTIC SERVICES INC., Clarkston 48346
Kevin Chase president Carole Chase vice president
$255.0
-12.7%
75 131
Specialty engineering thermoplastics distributor
SNETHKAMP AUTOMOTIVE FAMILY, Highland Park 48203
Mark Snethkamp president
$254.6 1
-3.6%
NA NA
Automobile dealerships
RONCELLI INC., Sterling Heights 48312
Gary Roncelli chairman and CEO Tom Wickersham president Gino Roncelli vice president
$245.0
-18.9%
198 215
Construction services, program management, construction management, design and build
ROYAL OAK FORD/BRIARWOOD FORD, Royal Oak 48067 248-548-4100; royaloakford.com
Eddie Hall Jr. president and CEO
$241.9
-10.6%
253 253
Automobile dealership
THE IDEAL GROUP INC., Detroit 48209 313-849-0000; weareideal.com
Frank Venegas Jr. chairman and CEO
$237.5
-12.0%
364 539
General contracting, specialized miscellaneous steel manufacturing and distribution of protective barrier products, global supply chain management, other
REVERE PLASTICS SYSTEMS LLC, Novi 48375
Glen Fish CEO
$230.0 3
-9.8%
NA NA
Engineered plastic injection molded assemblies and systems
GLOBAL AUTOMOTIVE ALLIANCE LLC, Detroit 48210
Sylvester Hester chairman William Pickard executive chairman
$229.1
-20.6%
171 1,209
Warehousing, contract assembly, freight forwarding, contract logistics, procurement, quality control and inventory management
76 77
DETROIT PISTONS, Auburn Hills 48326
Tom Gores Owner
$227.0 4
-11.0%
NA NA
National Basketball Association franchise
PAT MILLIKEN FORD INC., Redford 48239-1492
Brian Godfrey president Bruce Godfrey chairman
$215.0
-6.5%
135 NA
Automobile dealership
78 79 80 81
JOHN E. GREEN COMPANY, Highland Park 48203
Michael Green president and CEO
$205.0
-6.8%
500 NA
Mechanical and fire protection contractor
DYKEMA GOSSETT PLLC, Detroit 48243
Leonard Wolfe chairman and CEO
$200.7
-6.4%
261 704
Law firm
FORI AUTOMATION INC., Shelby Township 48315
Mike Beck, president; Paul Meloche, VP of sales
$190.7 1
-4.9%
NA NA
Automated material handling, assembly, testing and welding systems for the automotive and non-automotive industries
248-355-1040; uhy-us.com
UHY ADVISORS INC., Farmington Hills 48334
Steven McCarty, CEO; Thomas Callan, Great Lakes regional managing director
$189.2
12.1%
435 1,021
Licensed CPA firm
HATCH STAMPING CO., Chelsea 48118 734-475-8628; hatchstamping.com
Daniel Craig COO and president
$186.7 1
-15.9%
NA NA
Manufacturing
SECOND NATURE BRANDS ,6 Madison Heights 48071
Victor Mehren 7 CEO Dan Bailey vice president of operations
$185.0 1
0.0%
379 400
Snack food manufacturing and distribution; premium chocolate, premium confection
734-288-4400; dmwcc.com
DEARBORN MID-WEST CO., Taylor 48180
Jeff Homenik president, Michigan group
$185.0 1
-2.1%
NA NA
Material handling systems, construction, tooling/equipment installation, plant maintenance services, life-cycle improvement
ATWELL LLC, Southfield 48076 248-447-2000; atwell-group.com
Brian Wenzel president and CEO
$183.0
22.8%
143 700
Civil engineering, land surveying, land solutions, land planning, environmental consulting, natural resource management, program management and construction management
NATIONAL FOOD GROUP INC., Novi 48377-2454 800-886-6866; nationalfoodgroup.com
Sean Zecman, president and CEO Jim Moore, senior VP
$180.6
34.1%
95 119
Wholesale and retail food manufacturing/distribution with the focus on large volume accounts.
DEVON INDUSTRIAL GROUP, Detroit 48226
David Burnley president and CEO Stephanie Burnley co-CEO/business development manager
$168.0
18.3%
70 NA
Construction management, general contracting, program management, design build, pre-construction and decommissioning services
SYSTEMS TECHNOLOGY GROUP (STG), Troy 48084
Anup Popat chairman and CEO
$168.0
12.8%
750 NA
Digital transformation, cloud software integration (AWS, Azure, Google), mobility solutions, artificial intelligence, machine learning, big data analytics, IOT consulting and software integration services
THE COLASANTI COS., Macomb Township 48042
Carey Colasanti, CEO; Pat Wysocki, president
$167.0
22.8%
335 NA
General contracting and construction management and design/ build; self-perform concrete services
70 71 72 73 74 75
82 83 84 85 86 87 87 89
313-432-6200; gordonchevrolet.com 248-335-4222; abcwarehouse.com
248-334-2000; auchconstruction.com
586-274-4100; macombgroup.com
248-620-2120; chaseplastics.com
313-868-3300; snethkampauto.com 586-264-2060; roncelli-inc.com
833-300-4043; revereplasticssystems.com 313-849-3222; gaasolutions.com
248-377-0100; nba.com/pistons
313-255-3100; patmillikenford.com
313-868-2400; johnegreen.com
313-568-6800; dykema.com 586-47-2336; foriauto.com
248-588-1903; karsnuts.com
313-221-1600; devonindustrial.com
248-6439010; stgit.com
586-598-9700; colasantigroup.com
$301.1 2 $294.0 1 $213.8
$265.0
$290.3
$248.1 $292.0
$264.0 1 $302.0
$270.5 $270.0
$255.0 1 $288.7
$255.0 5 $230.0
$220.0 $214.4 $200.6 $168.7
$222.0 1 $185.0 1
$189.0 1 $149.0
$134.7
$142.0 1
$149.0
$136.0
NOTES: 1. Crain's estimate. 2. Automotive News. 3. Plastics News estimate. North American injection molding sales. 4. From Forbes. For 2019-20 season. 5. From Forbes. For 2018-19 season. 6. Second Nature Brands is the holding company name for the brands Kar's Nuts, Sanders and Second Nature Snacks. 7. Succeeded Nick Nicolay as CEO on Oct. 21.
MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 25
CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
90
VESCO OIL CORP., Southfield 48076 248-557-1600; vescooil.com
Lillian Stotland 1 president and CEO Marjory Epstein chairman of the board
$164.0
-15.9%
112 231
Distributor of auto and industrial lubricants and chemicals, auto aftermarket products
91 92 93
RPM, Royal Oak 48067 855-585-1910; rpmmoves.com
Sergio Gutierrez CEO
$163.1
-3.9%
138 45
Transportation logistics provider/3PL
BOWMAN AUTO GROUP (BOWMAN CHEVROLET), Clarkston 48346 248-795-1841; bowmanchevy.com
Katie Bowman Coleman president and owner
$162.6
-5.7%
118 118
Auto dealer
HUMANETICS GROUP, Farmington Hills 48335 734-451-7878; humaneticsgroup.com
Christopher O'Connor president and CEO
$160.7
-23.1%
178 831
Designs and manufactures safety equipment, including crash test dummies, simulated testing software, crash avoidance test equipment, custom electronic and fiber sensors and related test solutions.
94
OLIVER/HATCHER CONSTRUCTION AND DEVELOPMENT INC., Novi 48377
Paul Oliver principal Paul Hatcher president
$159.0
12.8%
42 NA
Construction manager, general contractor and design/build
95 96
CHEMICO LLC, Southfield 48033 248-723-3263; thechemicogroup.com
Leon Richardson CEO, chairman, president
$158.0
-3.7%
89 370
Chemical manufacturing, chemical management
TECHNOSOFT CORP., Southfield 48076
Radhakrishnan Gurusamy president and CEO
$150.7 2
-8.7%
NA NA
Information technology and IT-enabled consulting services and business process outsourcing. IT services and technology enabled health care solutions.
97
CRAIN COMMUNICATIONS INC., Detroit 48207
Keith Crain chairman KC Crain CEO
$150.0
-16.7%
220 620
Publisher of business, trade and consumer publications and related websites
RAY LAETHEM INC. , Detroit 48224 313-886-1700; raylaethem.com
Jeff Laethem president
$144.7 3
-3.6%
NA NA
Automobile dealership
EHIM INC., Southfield 48033-2154 248-948-9900; ehimrx.com
Mindi Fynke president and CEO
$142.7
-3.0%
135 NA
Pharmacy benefit manager
ALTIMETRIK CORP., Southfield 48075
Raj Vattikuti executive chairman
$142.5
27.2%
128 2,947
Digital business enablement
MILOSCH'S PALACE CHRYSLER-JEEP-DODGE INC., Lake Orion 48359
Donald Milosch president
$141.8 3
-3.6%
NA NA
Automobile dealership
734-475-1361; jiffymix.com
CHELSEA MILLING CO., Chelsea 48118
Howdy Holmes chairman, president and CEO
$140.0
2.2%
315 325
Dry baking mix manufacturer
MIDWEST STEEL INC., Detroit 48211 313-873-2220; midweststeel.com
Thomas Broad president
$135.0
-20.6%
110 200
Structural-steel contractor
EPITEC INC., Southfield 48033 248-353-6800; epitec.com
Jerome Sheppard CEO Josie Sheppard president
$131.6
5.3%
880 1,605
IT, engineering and professional staffing
TRIBAR MANUFACTURING LLC, Howell 48855
Robert Bretz president
$129.3 3
-4.9%
NA NA
Automotive supplier
GRANGER CONSTRUCTION CO., Novi 48377
Tim VanAntwerp vice president
$127.6
-24.0%
97 NA
Construction management, design build, general contractor
JEFFREY TAMAROFF AUTOMOTIVE FAMILY, Southfield 48034-1928
Jeffrey Tamaroff chairman and CEO Marvin Tamaroff chairman emeritus Jason Tamaroff and Eric Frehsee, VPs
$125.7
-18.9%
177 NA
Automobile dealerships
KIRCO MANIX , Troy 48084
Douglas Manix president
$125.0
40.4%
40 NA
Design and build, construction management
GORNO AUTOMOTIVE GROUP, Woodhaven 48183
Ed Jolliffe president
$123.6
-2.9%
113 113
Automobile dealership
SACHSE CONSTRUCTION AND DEVELOPMENT CO. LLC, Detroit 48201
Todd Sachse CEO and founder Steve Berlage president and COO
$121.5
-41.6%
150 NA
General contracting, construction management, design/build and tenant coordination
KASCO INC., Royal Oak 48067
Michael Engle vice president
$121.2 3
-2.1%
NA NA
Construction management, design/build, construction program administration
VILLAGE FORD INC., Dearborn 48124
James Seavitt president and CEO
$120.6 3
-3.6%
NA NA
Automotive dealership
DESHLER GROUP INC., Livonia 48150
Robert Gruschow president and CEO
$119.5
-16.4%
221 485
Industrial manufacturing group, incorporating fabrication, design, assembly, logistics, transport and information technology
LOAD ONE TRANSPORTATION & LOGISTICS, Taylor 48180
John Elliott CEO
$118.0
3.5%
586 634
Transportation and logistics. Services including ground expedite, air charter, air freight, logistics management, truckload, and specialized curtain-side flatbeds
115
MULTI-BANK SECURITIES INC., Southfield 48075
Jeff Maccagnone president David Maccagnone chairman and CEO
$117.6
54.6%
60 NA
Institutional broker-dealer that specializes in the sales, trading and underwriting of fixed-income securities.
116
JAMES GROUP , Detroit 48209
John James president Lorron James CEO John A. James chairman
$117.0
-4.1%
174 NA
Supply chain and logistics solutions company specializing in warehousing, transportation and value added services
117
AVIS FORD INC., Southfield 48034
Mark Douglas president Walter Douglas Sr. chairman
$112.9
-14.5%
119 NA
Automobile dealership
98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114
248-374-1100; oliverhatcher.com
248-603-2600; technosoftcorp.com
313-446-6000; crain.com
248-281-2500; altimetrik.com
248-393-2222; palacecjd.com
(517) 545-4200; tribarmfg.com
248-724-2950; grangerconstruction.com 248-353-1300; tamaroff.com
248-354-5100; kircomanix.com
734-676-2200; gornoford.com
313-481-8200; sachseconstruction.com
248-547-1210; kascoinc.com
313-565-3900; villageford.com
734-525-9100; deshlergroup.com
734-947-9440; load1.com
800-967-9045; mbssecurities.com
313-841-0070; jamesgroupintl.com
248-355-7500; avisford.com
NOTES: 1. Succeeded Donald Epstein as CEO in November. 2. Crain's estimate. 3. Crain's estimate.
26 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
$195.0
$169.8 $172.4 $209.0
$141.0
$164.0
$165.0 2
$180.0
$150.0 3
$147.1 $112.0
$147.0 3
$137.0 $170.0 $125.0
$136.0 3
$167.9 $154.9
$89.0
$127.3 $208.0
$123.8
$125.0 3
$143.0 $114.0
$76.1
$122.0
$132.1
CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
118
WORKFORCE SOFTWARE LLC, Livonia 48152 877-493-6723; workforcesoftware.com
Mike Morini CEO Bob Feller CFO
$110.7
6.0%
275 641
Workforce management
119 120
GHAFARI INC., Dearborn 48126 313-441-3000; ghafari.com
Yousif Ghafari chairman
$110.6
-15.7%
442 668
Engineering, architecture, process design, consulting, construction services and professional staffing
ADVANTAGE LIVING CENTERS, Southfield 48075
Kelsey Hastings Reginald Hartsfield owners
$109.1
-5.9%
815 879
Skilled-nursing homes, assisted living
121 122 123 124
INTERNATIONAL EXTRUSIONS INC., Garden City 48135
Nicholas Noecker president and CEO
$108.0
9.1%
250 240
Manufacturer of aluminum extruded profiles, powder-coat painting and fabrication facilities
FRANK REWOLD & SONS INC., Rochester 48307
Frank Rewold president and CEO
$106.4
8.6%
60 60
Construction manager
O'BRIEN CONSTRUCTION INC., Troy 48083
Timothy O'Brien president
$106.1
22.3%
54 NA
General contractor, construction manager
NATIONAL BUSINESS SUPPLY INC. (DBA NBS COMMERCIAL
Heather Lanier COO and principal Richard Schwabauer president
$103.0
-25.4%
139 NA
Commercial furnishings, audiovisual distributor, architectural products
ROGER ZATKOFF CO. (ZATKOFF SEALS & PACKINGS), Farmington
Gary Zatkoff president and CEO
$102.8
-12.8%
66 178
Distributor and manufacturer of seals and sealing products
126 127 128
MPS GROUP INC., Farmington Hills 48331
Charlie Williams chairman
$102.0
-15.0%
162 773
Waste management, paint shop cleaning and management and industrial cleaning
DEMARIA, Detroit 48202-3008
Joseph DeMaria Jr., CEO; Anthony DeMaria, president
$99.6 1
-2.1%
NA NA
General contracting, design-build, construction management, program management, pre-construction services
BULLSEYE TELECOM INC., Southfield 48033
Thomas Tisko 2 president and CEO
$98.8 1
-0.2%
NA NA
Secured communications, communications networks and advanced technologies. Security, VoIP, SD-WAN, Internet, Managed WiFI, IoT, and traditional phone service for business customers across the US.
129 130 131
BIG BOY RESTAURANT GROUP LLC, Warren 48091
Tamer Afr CEO, co-owner, chair
$98.0
-15.5%
NA NA
Restaurants and food manufacturer
BILL PERKINS AUTOMOTIVE GROUP, Taylor 48180
Bill Perkins president
$97.7
-17.7%
69 69
Automobile dealerships
734-662-1600; bankofannarbor.com
ARBOR BANCORP (BANK OF ANN ARBOR), Ann Arbor 48104
Tim Marshall President and Chief Executive Officer
$97.4 3
3.8%
NA NA
Financial services provider
132
586-779-8787; propergroupintl.com
PROPER GROUP INTERNATIONAL INC., Warren 48089
Geoffrey O'Brien CEO
$96.5 1
-16.8%
NA NA
Complex plastic injection molds, premium injection molded parts and assemblies, consumer products, polyurethane and skin form tooling, microcellular foam tooling, conformal cooling technologies, vacuum metalizing, rapid prototyping and web-based management of tooling and process data
THE MARS AGENCY, Southfield 48033-7496
Ken Barnett global CEO and chairman
$95.0 5
-8.8%
NA NA
Marketing
734-453-0800; linkeng.com
LINK ENGINEERING CO., Plymouth 48170
Roy Link chairman and CEO
$94.8 1
-15.9%
NA NA
Manufacturer of testing systems and provider of commercial testing services
ESCALENT (FORMERLY MARKET STRATEGIES INTERNATIONALMORPACE) ,6 Livonia 48152
Melissa Sauter CEO
$94.5 1
-9.0%
NA NA
Human behavior and data analytics firm
MJC COMPANIES, Macomb 48044 586-263-1203; mjccompanies.com
Michael Chirco founder and president
$94.1
-5.4%
62 63
Residential, apartment, commercial construction, builder and developer
MILLER, CANFIELD, PADDOCK AND STONE PLC, Detroit 48226
Megan Norris 7 CEO
$93.0
-13.1%
307 445
Law firm
HARLEY ELLIS DEVEREAUX CORP., Southfield 48033
Michael Cooper president and managing principal
$91.0
-12.5%
94 355
Design firm, including architecture, engineering, planning, interior design, landscape architecture and construction administration.
MARSH CONSTRUCTION (T.H. MARSH), Bloomfield Hills 48304
Ryan Marsh CEO
$90.0 1
-2.1%
NA NA
General contracting, construction management and advisory services
AUBURN PHARMACEUTICAL CO., Troy 48083
Jeffrey Farber chairman, president and CEO
$89.7
0.6%
101 116
Distributor of generic pharmaceuticals
APPLIED IMAGING, Southfield 48075 800-521-0983; appliedimaging.com
Casey Lowery VP of Operations John Lowery CEO
$89.2
137 433
Office technology solutions provider
142 143
EXHIBIT WORKS INC. (DBA EWI WORLDWIDE), Dearborn 48124
Dominic Silvio founder, chairman and CEO
$87.0
-27.5%
52 107
Marketing
MADISON ELECTRIC CO., Warren 48093-1047
Benjamin Rosenthal CFO Brett Schneider president
$85.5 1
-7.6%
NA NA
Electrical, electronic and automation distributor
144
C.E. GLEESON CONSTRUCTORS INC., Troy 48083 248-647-5500; gleesonconstructors.com
Charles E. Gleeson II, president and CEO; Brad Baker, VP of construction operations
$85.0
-22.7%
30 45
General contractor/construction manager
145 146
WADE TRIM, Detroit 48226 313-961-3650; wadetrim.com
Andrew McCune president and CEO
$84.5
7.5%
168 449
Consulting engineering
DIVERSIFIED COMPUTER SUPPLIES INC., Ann Arbor 48108
Joseph Hollenshead chairman, and CEO Brian Leek president
$82.1
-10.5%
49 99
Imaging/printer supplies, IT strategies, clients and supports backend connectivity with XML feeds, EDI integration and an ecommerce platform
E.W. GROBBEL SONS INC. , Detroit 48207
Jason Grobbel president
$80.7 1
-2.8%
NA NA
Corned beef
125
133 134 135 136 137 138 139 140 141
147
248-569-8400; AdvantageLiving.net
734-427-8700; extrusion.net
248-651-7242; frankrewold.com
248-334-2470; obriencc.com
INTERIORS), Troy 48083 248-823-5400; yourNBS.com
Hills 48335 248-478-2400; zatkoff.com
313-841-7588; mpsgrp.com
313-870-2800; demariabuild.com
248-784-2500; bullseyetelecom.com
586-759-6000; bigboy.com
734-287-2600; taylorchevy.com
248-936-2200; themarsagency.com
734-542-7600; escalent.co
313-963-6420; millercanfield.com 248-262-1500; hed.design
248-586-4130; thmarsh.com
248-526-3700; auburngenerics.com
734-525-9010; ewiworldwide.com
586-825-0200; madisonelectric.com
800-766-5400; dcsbiz.com
313-567-8000; grobbel.com
$104.4
$131.2 $116.0
$99.0 $97.9 $86.8
$138.0
$117.9
$120.0
$101.8 $99.0
$116.0 1 $118.7
$93.9 4
$116.0 1
$104.2 $112.8 $103.9
$99.5
$107.0 $104.0
$92.0 1
$89.1
$120.0 1 $92.5
$110.0
$78.6 $91.7
$83.0 1
NOTES: 1. Crain's estimate. 2. Succeeded William Oberlin as CEO effective Jan. 1. 3. From 2020 annual report. 4. From 2019 annual report. 5. Crain's estimate. 6. Market Strategies International and Morpace Inc. combined after California private equity firm, STG Partners LLC acquired them on June 22. 7. Succeeds Michael McGee as CEO , effective Feb. 26.
MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 27
CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
148 149 150 151 152 153 154 155 156 157 158 159
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
GLASSMAN AUTOMOTIVE GROUP INC., Southfield 48034
George Glassman president
$79.8
-12.3%
95 NA
Automobile dealerships
313-925-4774; bettermade.com
BETTER MADE SNACK FOODS INC., Detroit 48213
Catherine Gusmano, CEO; David Jones, president
$78.6 1
2.1%
NA NA
Snack food manufacturer/distributor
SHAW ELECTRIC CO., Southfield 48033 248-228-2000; shawelectric.com
Robert Minielly president and CEO
$78.4
4.8%
276 375
Electrical, fire alarm, security and teledata audio/ visual contractor
MICHAEL BATES CHEVROLET , Woodhaven 48183 734-676-9600; michaelbateschevy.com
Michael Bates owner, dealer principal
$78.0 1
-10.4%
NA NA
Automobile dealership
WOLVERINE TRUCK SALES INC., Dearborn 48120 313-849-0800; wolverinetruckgroup.com
Lynn Terry president
$76.7
-22.9%
162 NA
Truck sales, parts and service
SKYWAY PRECISION INC., Plymouth 48170
William Bonnell president
$72.3
-22.4%
191 266
CNC production machining
TRILLAMED LLC, Bingham Farms 48025
Frank Campanaro, CEO; Martin Sudz, CFO
$68.4 1
-8.8%
NA NA
Distribution of high tech medical equipment, MRO supplies and security/IT components
EDUCATIONAL DATA SYSTEMS INC. (EDSI), Dearborn 48120
Kevin Schnieders CEO
$68.0
11.5%
69 850
Workforce development and consulting
BLUEWATER TECHNOLOGIES GROUP INC., Southfield 48075
Suzanne Schoeneberger president
$66.9 1
-10.8%
NA NA
Events and installations.
CANIFF ELECTRIC SUPPLY, Hamtramck 48212
Douglas Bemis president
$66.5 1
-7.6%
NA NA
Wholesale distributor of electrical products
BUSCEMI ENTERPRISES INC., Roseville 48066
Anthony Buscemi president and CEO
$65.5
2.3%
550 NA
Franchisor of pizza and sub party stores
RAPID GLOBAL BUSINESS SOLUTIONS INC. (RGBSI), Troy 48083
Nanua Singh chairman and CEO
$65.3
-29.2%
NA NA
Software development, quality lifecycle management (QLM) software, IT services, staffing, engineering, cloud, supply chain management
MOTOR CITY STAMPING INC., Chesterfield Township 48051
Judith Kucway CEO and CFO
$64.3 1
0.0%
NA NA
Stamping plant, automotive welding, assembly, dies and prototypes
ARC SUPPLY CHAIN SOLUTIONS INC., Taylor 48180
Greta Elliott president
$64.0
4.9%
41 43
Transportation management systems, dynamic reporting, modal optimization, financial services and warehouse operations
BOB JEANNOTTE BUICK GMC INC., Plymouth 48170
Robert Jeannotte CEO
$61.4
-15.1%
55 NA
Automobile dealership
MARXMODA, Detroit 48226
Whitney Marx Joe Marx principals
$61.0
-15.3%
70 NA
Office furnishings, culture, technology integration
RELIABLE SOFTWARE RESOURCES INC., Northville 48167
Ravi Vallem, CEO; Venkat Gone, president; Sridhar Kodati, CFO
$60.3 2
-8.7%
NA NA
Data and application services including big data, advanced analytics, business intelligence
165 166 167
DOMESTIC LINEN SUPPLY AND LAUNDRY CO., Farmington Hills 48334
Bruce Colton president
$59.5
-3.3%
120 475
Facility management and textile rental
ANSARA RESTAURANT GROUP INC., Farmington Hills 48335
Victor Ansara president and CEO
$59.4
-29.2%
800 1,400
Restaurant
ARROW STRATEGIES LLC, Southfield 48034
Jeffrey Styers president and CEO
$59.0
88.6%
993 1,120
Staffing firm specializing in placement of professionals in the information technology, engineering, professional and health care services industries
168 169 170 171
ROBERTSON BROTHERS CO., Bloomfield Hills 48301
James Clarke president, CEO
$57.0
-19.3%
42 42
Builder and developer of single-family, condominiums and midrise condominiums
OHM ADVISORS (ORCHARD, HILTZ & MCCLIMENT INC.), Livonia 48150
John Hiltz president
$55.0 1
-20.3%
NA NA
Architects, engineers and planners
SYSTRAND MANUFACTURING CORP., Brownstown Township 48183
Sharon Cannarsa president and CEO
$54.1
-26.7%
187 228
Precision machining and assembly
SME (SOIL AND MATERIALS ENGINEERS INC.), Plymouth 48170
Mark Kramer president and CEO
$51.8
-9.9%
163 305
Geotechnical, environmental, pavement, civil/survey, building and construction materials, building enclosures, and metals and coatings consulting and design services.
172
PMA CONSULTANTS LLC, Detroit 48226 313-963-8863; pmaconsultants.com
Robert Sanders executive director Gui Ponce de Leon CEO
$48.6
2.9%
40 235
Program, project and construction management consulting; expert witness services
173 174 175 176 177
CLOVERDALE EQUIPMENT CO., Oak Park 48237 800-822-7999; cloverdaleequipment.com
Todd Moilanen president, CEO, chairman
$48.4
-3.8%
60 120
Construction equipment rental & distribution
248-358-1002; w3r.com
W3R CONSULTING, Southfield 48075
Eric Hardy president and CEO
$47.9
-1.0%
NA NA
IT staffing and consulting, including application development, business intelligence and data analytics
AIMS CONSTRUCTION INC., Livonia 48152 248-476-1310; aimconstruction.com
Tim Belanger CEO
$42.5
-33.1%
31 NA
Construction manager/general contractor/design builder
ICR SERVICES, Warren 48092 586-582-1500; icrservices.com
Paul Gutierrez president and founder
$40.2 2
-8.7%
NA NA
Industrial repair, service and automation provider
JOE VICARI RESTAURANT GROUP/ANDIAMO & JOE MUER SEAFOOD, Sterling Heights 48310
Joe Vicari CEO and president
$40.0
-41.2%
750 NA
Restaurants
178 179 180
KYYBA INC., Farmington Hills 48334 248-813-9665; kyyba.com
Thiru Ganesan president and CEO
$40.0
-24.3%
NA NA
Engineering and IT staffing services, application software, off-shore development and automotive electronics solutions
PRIZELOGIC LLC, Southfield 48033 248-663-8600; prizelogic.com
Ryan LaMirand Chief Executive Officer
$39.2 1
0.5%
NA NA
Incentivized engagement for brands
ENGLISH GARDENS, Dearborn Heights 48127 313-278-5244; EnglishGardens.com
John Darin president
$38.4
13.1%
244 244
Retail stores with nursery, garden center, florist (4 of the 6 locations), landscaping: full-service and assistance for do-it-yourselfers
160 161 162 163 164
248-354-3300; glassmanautogroup.com
734-454-3550; skywayprecision.com 248-433-0582; trillamed.com
313-271-2660; edsisolutions.com
248-356-4399; bluewatertech.com 313-365-8144; caniff.com
586-296-5560; originalbuscemis.com 248-589-1135; rgbsi.com
586-949-8420; mcstamp.com 877-272-3523; arc-scs.com
(734) 453-2500; jeannotte.com
855-242-9292; marxmoda.com
248-504-6869; rsrit.com
248-737-2000; domesticuniform.com
248-848-9099; ansararestaurantgroup.com 248-502-2500; arrowstrategies.com
248-644-3460; robertson-brothers.com
888-522-6711; ohm-advisors.com 734-479-8100; systrand.com
734-819-3370; sme-usa.com
586-981-0888; vicarirestaurants.com
NOTES: 1. Crain's estimate. 2. Crain's estimate.
28 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
$90.9
$77.0
$74.8
$87.0 1
$99.4 $93.2
$75.0
$61.0
$75.0
$72.0 1
$64.0 1 $92.3
$64.3
$61.0 $72.3 $72.0
$66.0 2
$61.5 $84.0
$31.3 2
$70.7
$69.0
$73.8 $57.5
$47.3
$50.3 $48.4 $63.5
$44.0 2
$68.0
$52.9
$39.0 1
$33.9
CRAIN'S LIST | PRIVATE 200 Ranked by 2020 revenue
COMPANY PHONE; WEBSITE
TOP EXECUTIVE
REVENUE ($000,000) 2020/2019
PERCENT CHANGE 20.0%
DETROIT AREA EMPLOYEES/ WORLDWIDE EMPLOYEES JAN. 2021
TYPE OF BUSINESS
65 250
Private equity firm focused on fitness clubs, commercial real estate and lending.
NA NA
Financial services - broker/dealer, investment advisor, insurance agency
181
CAMBRIDGE INVESTORS LLC, Troy 48084
Thomas Purther CEO
$37.5
182
CONCORDE HOLDINGS, Livonia 48152 248-824-6710; concordeis.com
Drew Jackson president Jason Kavanaugh board member
$36.7
183
LOWRY SOLUTIONS, Brighton 48116 810-229-7200; lowrysolutions.com
Michael Lowry president and CEO
$36.5
-15.1%
57 87
IoT, RFID, barcode systems integrator
184
248-674-3126; advancepac.com
ADVANCE PACKAGING TECHNOLOGIES, Waterford Township 48329
Rob Cohen president Tom Risi vice president, Sales
$36.3
-12.5%
16 22
Design and distribution of automotive adhesive films and industrial packaging
185
734-459-1670; aql-inc.com
AUTOMOTIVE QUALITY & LOGISTICS INC., Plymouth 48170
Sangeeta Ahluwalia CEO
$35.5
4.1%
162 1,521
Staffing, warehousing, third party containment - sorting and inspection, manufacturing service support, kitting and repacking services
186
STAFFWORKS GROUP, Auburn Hills 48326
L. William Brann III CEO Jason Brann president and COO
$35.0
0.0%
NA NA
Staffing and recruiting agency specializing in commercial, health care, professional and engineering
187
ZAUSMER PC, Farmington Hills 48334
Mark Zausmer managing shareholder
$34.7
-9.0%
163 163
Law firm
188
SEKO WORLDWIDE DETROIT, Romulus 48174 734-641-2100; sekologistics.com/detroit
Michael Bartelo Tanya Bartelo owner, managing directors
$34.2
-30.0%
30 7,079
Logistics services, including domestic and global air, ocean and ground transportation, freight forwarding, customs brokerage, warehousing and distribution and export crating. White glove services, MED-Tech, Omni channel logistics
189
CONTRACT DIRECT LLC, Southfield 48075 248-361-0427; contractdirect.net
Elizabeth Hammond president
$33.8
-3.2%
26 95
Facility service provider
190
248-720-2500; malacehr.com
MALACE & ASSOCIATES INC., Troy 48098
Larry Malace II CEO
$33.7
13.6%
560 1,020
Staffing company
191
A&S RV CENTER, Auburn Hills 48326
Larry Andree, owner, president; Kristen Manninen and Michael Andree, general managers
$33.3
22.0%
31 46
RV dealership
192
RONNISCH CONSTRUCTION GROUP, Royal Oak 48073 248-840-7910; ronnisch.com
Bernd Ronnisch president
$33.0
-41.1%
25 NA
Construction management, general contractor
193
AMERICAN PLASTIC TOYS INC., Walled Lake 48390 248-624-4881; americanplastictoys.com
John Gessert president and CEO
$30.0
-22.1%
180 290
Manufactures and distributes injection-molded plastic toys
194
A.Z. SHMINA INC., Brighton 48116 810-227-5100; azshmina.com
Andrew Shmina president
$30.0
7.1%
35 NA
Building contractor
195
AZTEC MANUFACTURING CORP., Romulus 48174
Greg Lopez president and CEO Mark Kroll executive vice president
$29.3
-21.1%
65 65
Auto parts manufacturer
248 822-5100; cambridgeinvestors.com
248-416-1090; staffworksgroup.com
248-851-4111; zausmer.com
(248) 373-5811; asrvcenter.com
734-942-7433; aztecmfgcorp.com
$31.2
$43.0
$41.5
$34.1
$35.0
$38.1
$48.8
$34.9
$29.6
$27.3
$56.0
$38.5
$28.0
$37.2
196
734-429-5411; bookprinters.com
MCNAUGHTON & GUNN INC., Saline 48176-0010
Julie McFarland president
$27.9
0.7%
155 155
Book manufacturing
197
FORTECH PRODUCTS INC., Brighton 48116 248-446-9500; fortechproducts.com
Creighton Forester president, CEO
$26.5
-1.9%
50 58
Manufacturer of specialty coatings, engineered lubricants and cleaners.
198
313-964-3155; migconstruction.com
MIG EAST LLC DBA/ MIG CONSTRUCTION, Detroit 48226
Paul Jenkins Sr. CEO Brian Deming president
$26.2
7.0%
26 26
General contractor, construction manager
NETLINK SOFTWARE GROUP AMERICA INC, Madison Heights 48071
Anurag Shrivastava co-founder and CEO
$25.8
12.0%
29 975
Managed IT and cloud-enabled business solutions
199
248-204-8800; netlink.com
$27.7
$27.0
$24.5
$23.0
200
(248) 250-9410; goimperium.com
IMPERIUM LOGISTICS LLC, Troy 48083
A. Rocky Raczkowski president and founder
$24.3
-20.3%
NA NA
Logistics and supply chain corporation.
201
BLUE CHIP TALENT, Bloomfield Hills 48302 248-858-7701; bctalent.com
Nicole Pawczuk CEO
$24.3
-7.5%
200 200
Staffing, talent acquisition
$30.5
$26.3
Researched by Sonya D. Hill: shill@crain.com | This list of privately held companies is an approximate compilation of the largest companies in Wayne, Oakland, Macomb, Livingston and Washtenaw counties that do not have stock traded on
a public exchange. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available.
Want the full Excel version of this list — and every list? Become a Data Member: CrainsDetroit.com/data
MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 29
SMALL BUSINESS SPOTLIGHT
Independent workers hustle up ways to survive, thrive on their own
THE GIG IS UP
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Mallory Mae Atkinson of Romeo takes photos of Brooke Brewer of Romeo (left) and Joe Bacci of Almont during an engagement photo shoot at River Bends Park in Shelby Township. |NIC ANTAYA FOR CRAIN’S DETROIT BUSINESS
BY JAY DAVIS Dearborn resident Craig Cotter needed some steady income after the coronavirus pandemic put his two jobs on hold.
Cotter, 60, works as an assistant baseball coach at the University of Michigan-Dearborn and serves as a mentor to students at Clarenceville Middle School in Livonia. Once the pandemic hit in March 2020, the baseball season was canceled and schools went virtual for an extended period of time. Cotter didn’t want to sit around the house. “There were bills to be paid,” he said. Cotter, who normally brings in about $40,000 annually from his coaching and mentoring jobs, wanted to work full time, but he also wanted some flexibility. He began working with Instacart in late March 2020 and is still with the grocery delivery service even though the 2021 college baseball season began and schools are back in session. “I thought (Instacart) was a great platform,” Cotter said. “I work when I want to work. The (Instacart app) lays everything out for you, tells you which aisle everything is in, and is set up for each store they service, which is really good.” Cotter is among a growing number of gig workers: independent contractors, online platform workers, on-call and temporary workers and freelancers. Some gig workers enter into formal agreements with on-demand companies to provide services, others are self-employed. Some work their side hustle around their regular day job. For others, it’s the only work they can get. Gig work has become more common. As many as 55 million people in the United States were gig workers — or 34 percent of the workforce — in 2017, according to the International Labor Organization, and the total was projected to rise to 43 percent in 2020. The gig econ-
omy generated $1.7 trillion in revenue in 2020, according to a study from daVinci Payments. Overall, online food delivery in the U.S. last year generated $26.5 billion in revenue. Cotter keeps busy shopping for Instacart customers at Kroger, Costco and Sam’s Club stores. Costco and Sam’s Club offer big-money orders and tips. Instacart shoppers, all of whom work as independent contractors, can make between 75 cents and $1.25 per item. Cotter said he looks to make $20-$30 a trip from Instacart and with a solid tip he can make about $50 an order. Instacart also pays shoppers 57 cents per mile. Since the start of the pandemic, Instacart shoppers have earned $4.2 billion, according to Erica Kolari, the company’s manager of shopper engagement and communications. See GIG on Page 31
READ ALL OF CRAIN’S SBS PROFILES AT CRAINSDETROIT.COM/SMALLBUSINESSSPOTLIGHT 30 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
“I THOUGHT (INSTACART) WAS A GREAT PLATFORM. I WORK WHEN I WANT TO WORK. THE (INSTACART APP) LAYS EVERYTHING OUT FOR YOU, TELLS YOU WHICH AISLE EVERYTHING IS IN, AND IS SET UP FOR EACH STORE THEY SERVICE, WHICH IS REALLY GOOD.” — Craig Cotter
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GIG STRATEGIES Whether a photographer, personal shopper or landscaper, there are ways to thrive as a gig worker:
`MASTER YOUR MONEY: Workers in the gig economy don’t have access to a company retirement plan like a 401(k), but they can save with an IRA, a Solo 401(k), SEP IRA, SIMPLE IRA or a defined benefit plan. `TAX TIME: Because taxes are not withheld for the self-employed, most are responsible for making quarterly tax payments based on their estimated annual income. `HONE YOUR BRAND: Develop a solid personal brand. Post regular updates on social networking platforms that highlight your personal strengths and successes. Post a portfolio of your work online to showcase your skills and versatility. `MANAGE YOUR TIME WELL: Having a routine will increase your sense of control, enhance your focus and ensure you’re maintaining a healthy work-life balance. Create a distraction-free workspace at home or consider a co-working space. For a monthly fee, you’ll get access to a desk, printer, Wi-Fi network and other amenities you’d find around a typical office. SOURCES: MONEYWISE, GIGONOMY, IRS, NERDWALLET
GIG
From Page 30
Additionally, average shopper earnings have increased by as much as 40 percent year-over-year, Kolari said, as more than 300,000 shoppers joined the platform since March 2020, bringing the company’s total to more than 500,000 active shoppers. In six months working 8-10 hours a day, six days a week, Cotter estimates he made about $26,000, which would put him on track to surpass his 2019 earnings. For a 50 cent fee, Instacart shoppers can cash out earnings the same day. “The flexibility is phenomenal,” said Cotter, who as an independent contractor receives no benefits or 401(k) plan and is responsible for filing and paying his own taxes. “My wife works a split shift. Since we’re homebodies now with all the kids gone, if she’s working a Friday night, I might as well work. I love (working with Instacart) for the convenience. When I would work in the summer at (baseball) camps in Ohio and Indiana, if there was a huge gap in between games, I’d work.”
Companies look to cut University of Michigan Ross School of Business Professor Susan Ashcroft in 2018 published a study detailing how gig workers could thrive. The study, published in Administrative Science Quarterly, focused on high-level positions in the science field but applies to others. Ashcroft, who began her research in 2003, said companies and organizations have been looking for ways to shed costs since the 1990s, and hiring contract employees has been a big part of that. Employee benefit costs are a major reason for the shift, Ashford said. “If I can shed the cost of benefits by hiring a contractor, that’s good for me as an employer,” she said. “Kelly Services has been connecting temp workers with companies for years. A threat to their business is there are platforms now that do the same thing without the middleman.”
Mallory Mae Atkinson of Romeo at River Bends Park in Shelby Township. “I honestly love sharing laughs and memories with my clients,” Atkinson said. | NIC ANTAYA FOR CRAIN’S DETROIT BUSINESSS
Some of those platforms include Kolabtree, an online talent marketplace for science professionals and Upwork, an American freelancing platform where Ashford enterprises and individuals connect in order to conduct business. Both were established in 2015. Craigslist, started in 1996, also offers a slew of job listings for gig workers, such as for lawn care, catering, home remodeling, pet sitters and more. “Instead of hiring scientists, they can be contracted through those platforms,” Ashford said. “We see it at the low-end too with Doordash and Uber. It’s all connected by technology.”
Pursuing a passion Mallory Atkinson was set to pursue a degree in a technological field, but her heart wasn’t in it. Atkinson, who had done photography all through high school, enrolled at Oakland University in Rochester Hills as a graphic design major. “I thought I needed to go into a field that would give me a chance to make a living,” said Atkinson, a 25-year-old Romeo resident. Atkinson stuck with the program for two years before dropping out to pursue a career in photography. She enrolled in a photographic technology program at Macomb Community College and set out to become a full-time photographer when she was a few classes short of earning her certification. Getting started right away was important, as Atkinson had two student loans to pay off. She’s been debt-free for two years now. “I had been doing photo shoots for a long time. It’s really what I love to do,” Atkinson said. Atkinson, who does couples shoots along with weddings and newborn baby photos, found she made the right decision to work for herself. In 2019, her first year working full time as owner of Mallory Mae Photography LLC,
Atkinson earned $70,000. The average base salary for a graphic designer in metro Detroit is about $44,000, according to Glassdoor. “I was always pretty confident I could make enough money to survive,” Atkinson said. “I worked to show people I had a passion for (photography). It boomed into what I was always hoping it would be. I guess I got lucky.” Atkinson is part of a demographic that believes gig work fits their lifestyle, according to UM’s Ashford. Gig work is particularly appealing to younger people. Adults just out of college and those without families say they like the flexibility. Ashford also recognizes prior generations didn’t have access to the technology available now that is needed for a lot of gig work today. “People didn’t have much of a choice. There wasn’t another way to do things,” she said. “With technological mediation, and the growth of the internet, there are a lot of choices now that didn’t exist previously.” Think app-based delivery services, Lyft and Uber ride-hailing services and on-call yard maintenance like Lawn Guru or errand runners like TaskRabbit.
‘The biggest downfall’ Atkinson and other gig workers are on their own for health benefits. Individual health insurance is available from companies such as United Health Care and Humana and freelancers can enroll in Affordable Care Act plans. But those options are more costly than what full-time workers would pay in an employer-offered plan. “They’re probably underinsured relative to where they would be if they worked with a particular company,” Ashford said of gig workers. “The question then becomes, ‘how do I work enough to meet my needs?’” Atkinson pays about $150 a month for insurance through Blue Care Network. The photographer said she has the most basic plan, which has lower monthly payments but higher out-ofpocket costs. With employer-sponsored health plans, the employer and staffer share
Small business podcast Hear a Small Business Spotlight interview between Crain’s reporter Jay Davis and photographer Mallory Atkinson at crainsdetroit.com/topic/audio
premium costs. Employer-paid plans, unlike individual plans, can be paid on a pre-tax basis. “I think (health benefits) are the biggest downfall of being self-employed,” Atkinson said. “I recently went into my doctor’s office and my plan doesn’t cover a lot of procedures.” Ashford said if there is ever a way for gig workers to get more affordable insurance, the field would reach new heights. “This is a big deal. If this nut were cracked, you’d see the gig economy explode even more,” she said. “There are some people, neoliberalists, which I’m not, who believe health benefits and other things should be available on the free market. They want to be able to put money in their retirement on their own without an employer. Those things can be done, but it’s very difficult. The gig career path can be challenging. You’re working alone a lot, and that can be challenging. When you’re younger, you can do gigs, but what’s your life like as you get older?” Last month, U.S. Secretary of Labor Marty Walsh suggested a shift in policy, saying many gig workers should be classified as employees and given benefits, Reuters reported. That would increase costs for companies such as Instacart, Doordash and Uber. Walsh also spoke about the risks from gig companies not paying unemployment insurance for such workers — a scenario that has played out during the pandemic, leaving the U.S. government to foot the bill, the Reuters report stated. “If the federal government didn’t cover the gig economy workers, those workers would not only have lost their job, but they wouldn’t have had any unemployment benefits to keep their family moving forward. We’d have a lot more difficult situation all across the country,” he said. Atkinson as an independent contractor has not been able to collect
unemployment at any point during the pandemic even though her business was not deemed essential. The state said she owed too much in taxes to receive unemployment, sending her a letter almost daily as a reminder. She then applied for the benefits as one employee of Mallory Mae Photography. The state saw that as Atkinson looking to obtain funds as a corporation. She adjusted, though, and offered “porch shoots” at clients’ homes, following social distancing guidelines, performing the sessions for donations. Although the porch shoots helped Atkinson’s business stay afloat, as clients recommended her to others and shared her work across social media, she did take a loss of about $20,000 last year.
Wave of the future Ashford believes the gig economy will continue to grow, but is unsure about its long-term viability. “If I work from home as a university professor, I have a job. I don’t have to worry about where my next check is going to come from or my brand,” Ashford said. Atkinson, whose business is ramping back up, is not concerned. “The opportunities I missed out on last year are coming back to me,” she said. “I can see myself doing this until I’m old and gray and my grandkids are sick of me taking their photo.” Cotter is thankful for the opportunity. He plans to continue to work with Instacart about 30 hours a week — 40 when the school year ends. “I have an entrepreneurial spirit. I don’t think I’ll ever stop doing this,” Cotter said. “I’d have golf dates in the summer, and if we didn’t tee off until noon, I’d do Instacart that morning and pay for my round and lunch, or if my wife wants to go to lunch or dinner, I’ll work a couple of hours and use the money to go eat. Once I retire, I’ll have the opportunity to work when I want, then I can use the money to pay bills and spoil my grandkids.” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981 MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 31
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INSIDE: City, retirees at odds over how to spread out Detroit pension payments. PAGE 35
PENSIONS
COMMENTARY: Perspectives on how to fix underfunded pensions across government . PAGES 36-38
Rodney W. Parnell, 74, poses for a portrait inside of his home in Canton Township on May 18, 2021. Parnell is a retired chief of the Detroit Fire Department’s Community Relations Division. and relies on his city pension. “The fire department is a calling. It isn’t just a job. It’s more than a punch in the clock,” Parnell said. | NIC ANTAYA, SPECIAL TO CRAIN’S DETROIT
ON THE CLIFF’S EDGE
Detroit's decade-long break from pension payments is coming to a close. Will it be ready? BY ANNALISE FRANK
Rod Parnell’s hair fell into the sink when he lifted off his helmet to wash his face on the day he almost died. The stench of singed hair doesn’t fade quickly, and neither has the Detroit Fire Department retiree’s memory of a night in April 1970 when he had to be forcibly pulled from the second floor of a burning building at Woodrow Wilson and Leslie streets. “I was inches away from death and didn’t know it,” said Parnell, now 74 years old. He spent nearly 26 years in the fire department and nearly died twice. Now, long into his retirement, he drives for ride-hailing service Lyft 15 hours a week to pay for health care costs. The Canton Township resident is among city of Detroit retirees who saw benefits they’d been promised for years or decades slashed as the city renegotiated debts during its historic 2013-14 bankruptcy. Now Parnell, who retired in 1995, and other pensioners are looking on with intrigue and concern as the city faces a potentially hazardous precipice in less than three years. Detroit’s so-called “pension cliff” is coming up quickly. In July 2023, the start of the city’s fiscal year 2024, Detroit will need to start making pension debt payments totaling at least $202 million or nearly 20 percent of the city’s budget. See PENSION on Page 34
IN JULY 2023, DETROIT WILL NEED TO START MAKING PENSION DEBT PAYMENTS TOTALING AT LEAST $202 MILLION ANNUALLY — OR NEARLY 20 PERCENT OF THE CITY’S ANNUAL BUDGET.
Detroit’s declining pension values The funding levels for Detroit’s pension funds have declined since the city’s 2013-2014 bankrupty, in part, because the Chapter 9 reorganization gave the City of Detroit a ten-year reprieve from making regular contributions to legacy pensions that are no longer offered to newly-hired city workers, police officers and firefighters. The rising unfunded liabilities for both pension funds is due to more money being paid out annually in benefits and expenses than the funds are receiving in investment gains. Police & Fire Retirement System
General Retirement System
100% 80 58.8%
60 40 20 0
2013
2014
2015
2016
2017
2018
2019
NA 2020
SOURCE: POLICE & FIRE AND GENERAL RETIREMENT SYSTEMS OR THE CITY OF DETROIT
MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 33
PENSIONS”
PENSION
From Page 33
It’s an estimated cost that just keeps growing as Detroit gets further removed from its bankruptcy: As recently as 2018, the city was predicting its annual pension payments would amount to $143 million, up from original estimates of $110 million. “Those numbers, I mean that’s a train wreck waiting to happen,” said Scott Benson, a Detroit City Council member and General Retirement System trustee. “But we’re planning for it, we’re disciplined, and I believe we’re going to have it under control.” As the deadline nears, a feud between Mayor Mike Duggan’s administration and retirees is taking shape over what funding strategy to use to meet these legacy pension obligations — a disagreement that could have major impacts on the city’s bottom line. Duggan’s team and the city’s two retirement systems are at odds over how fast legacy pensions should be paid off — the municipal finance equivalent of deciding between a 30-year mortgage or a 20-year payment that takes a bigger bite out of the city’s coffers initially. “We’re not trying to kill them,” said Joe Bogdahn, chair of the investment committee of the Police and Fire Retirement System, which has favored a 20-year payment plan. “But at the same time, if that means they don’t get to build a park or do something else, that’s not our issue, because we don’t deal with the politics of it.”
Plan of Adjustment Detroit’s 2014 court-approved debt-cutting plan shed $7 billion off its balance sheets. Pensions became the biggest chunk of obligations in the bankruptcy, after pension and retiree health care costs ballooned compared with the city’s population decline. Former Mayor Kwame Kilpatrick inherited that massive pension problem and sought to resolve it with an ill-conceived $1.4 billion debt deal that was undone by U.S. Bankruptcy Judge Steven Rhodes’ gavel.
The city’s bankruptcy Plan of Adjustment gave Detroit a decade-long reprieve from making regular pension fund payments, while cutting retirees’ pension and health care benefits and transferring current workers to a less generous retirement plan. Pensions likely would have been decimated as part of the Chapter 9 reorganization if not for the $820 million Grand Bargain, a fund established by philanthropic foundations to aid the city’s pension funds and save city-owned art at the Detroit Institute of Arts from being auctioned off to satisfy creditors. But retirees like Parnell didn’t come out unscathed — far from it. Otherwise, he likely wouldn’t have nearly 4,000 Lyft rides under his belt. The Plan of Adjustment cut costof-living adjustments for police and fire retirees by 55 percent and eliminated them for general retirees. The latter also saw base benefits cut by around 4.5 percent. Both had health care benefits sliced. Those still working for the city had their retirement plans frozen — those older plans are the “legacy” ones on which the city owes — and started on plans with decreased health care, higher costs for employees depending on the plans’ returns and other limits. Pensioners lost a federal appeal over the cuts in 2016. While the bankruptcy gave the city a decade to reinvest in services and neighborhoods, the court didn’t let Detroit taxpayers off the hook forever. As of the 2019 fiscal year, the most recent data available in Detroit’s annual financial report, the difference between the assets set aside to pay Detroit’s two legacy plan benefits and the amount that’s actually owed, or unfunded liabilities, totaled $1.9 billion.
‘Off the cliff’ Recently, Detroit has been meeting its budgetary goals during a different time of extreme volatility: the COVID-19 pandemic-induced recession. Credit ratings agency Moody’s Investors Service has maintained throughout the downturn that Duggan’s administration has re-
The city’s obligation to resume pension payments for city workershas been termed a “pension cliff.” | NIC ANTAYA, SPECIAL TO CRAIN’S DETROIT BUSINESS
Benson
Duggan
sponded well, taking action early to cut spending amid a $410 million shortfall over just more than a year. Moody’s has maintained a Ba3 credit rating on Detroit’s debt despite the pandemic. S&P Global Ratings, however, wasn’t as optimistic and dropped its outlook a notch but then brought it back up. “That (budget shortfall) really just brought into clear view how
critical it is to having a funding policy in place and a manageable number with which to fund every year,” Benson said. “Even though we are very focused, very disciplined, when it comes to our budgeting, our expenditures, something like COVID, which is unexpected, could just send all the great plans off the cliff...” Detroit has managed those deficits, but that’s no reason to celebrate. The unfunded pension liability is an obstacle to the post-pandemic recovery of the city, its residents and business environment, sucking up public dollars that could otherwise be spent improving services or infrastructure, according to Moody’s. “The city’s significant service and
capital needs have not gone away,” Moody’s analysts wrote in a Jan. 20 credit opinion. “Even in a scenario of steady recovery, further action will be needed to close out-year budget gaps and to accommodate growth in pension costs in the budget.” But the city is not running toward the pension cliff empty-handed. Since 2016, Detroit has been socking away cash in anticipation of reaching the cliff’s edge. The dedicated trust is called the Retiree Protection Fund. Officials originally planned to deposit up to $245 million in the trust fund. For next fiscal year, which begins July 1, the city plans to add its scheduled $55 million to the fund, plus a $30 million supple-
Detroit’s saving up to cushion the blow from pension payments The city of Detroit will owe an estimated $202 million a year starting in fiscal 2024 for legacy pension payments under the Plan of Adjustment created as part of the city’s 2013-14 bankruptcy. Detroit deferred most of its pension debt for a decade while it sought to invest in the city and improve floundering city services. It’s got a cushion it’s been building up in a specialized fund, the Retiree Protection Fund. But that won’t be enough to quash its debt. General Fund legacy pension contributions, in millions* Pension contribution (general fund) Pension contribution (RPF)
Retiree Protection Fund, in millions Balance FY22 original deposit FY22 supplemental deposit
$250 million
$350 million
RPF Deposit (recurring)
RPF Deposit (one-time)
Grand Bargain contributions end in 2035 $221 $221
$30.0
300
$55.0
$202 $202 $202 $202 $202 $202 $202
200
$123 $113 $103 $61
250 $234.7
200
150 $365 million in RPF deposits
100 $129.5 $103.3
FY18
50
FY19
$30
$50
50 0
$141
$184.7
150 100
$234.7
FY20
FY21
FY22
0
$20 $12 $10 $20
$10 $20
$15 $20
$20
$45 $50
$55
$79
$89
$99
$60
$20
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36
*Projections of annual legacy pension contributions assume a 30-year dollar amoritization. Excludes “grand bargain” contributions from State of Michigan, Foundation for Detroit’s Future and Detroit Institute of Arts. DWSD and Library liabilites and contributions are separate. SOURCE: DETROIT OFFICE OF BUDGET DATA FROM MAYOR MIKE DUGGAN’S MARCH 5 PROPOSED FISCAL 2021-22 BUDGET PRESENTATION
34 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
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PENSIONS
Detroit, retirees at odds over spreading out costs BY ANNALISE FRANK
Funding levels for police and fire department pensions have decreasd since 2013-14. They don’t receive Social Security. | CRAIN’S DETROIT BUSINESS
mental deposit for good measure, growing the total to nearly $320 million. Per the Retiree Protection Fund schedule the city set up, it will need to add at least $60 million next year, giving it at least $380 million to work with by fiscal 2024. That first year of payments, the city expects to pay $79 million itself and $123 million from the fund, then $89 million from the city the next year and so on until it’s used up. The trust fund is not a cure-all, though. By summer 2027, Detroit will need to start paying in full — unless some more monetary assistance is found, that is, the city’s budget office said in a March 31 long-term financial forecast. Plus, when Grand Bargain contributions end the payment will rise to $221 million a year in fiscal 2035. It’s not clear where Detroit would look for potential new funding sources, and the Duggan administration did not provide an official to comment for this Crain’s Forum report. “I think the biggest question that I would have if I was a retiree dependent (on the legacy system) is, ‘Are they going to make the 2024 payment?’” said David Draine, a principal public sector retirement system investigator for The Pew Charitable Trusts who has studied Detroit’s pension funds. “Which, everything that they’ve said that I’ve seen says that they’re planning to. When that happens, if I was a retiree, I would feel more confident in my benefit.”
Revenue gains? The city is working to prepare for fiscal 2024, and the Retiree
Protection Fund isn’t the only way it’s doing so, according to Councilman Benson. Detroit is looking to grow revenues by attracting business investment, he said. Regardless of intentions, Detroit is facing an uphill battle as its population has continued to decrease, the pandemic hurt economic gains and expenditures are set to outpace revenues starting around fiscal 2025. The city is also going to have some money freed up as bond debts get paid and money allocated for those goes down slightly in coming years, Benson said. Even with all this planning, Detroit’s budget is highly exposed to risk. For one, there are fluctuations in how pension assets perform — and they’ve made less than expected, per Moody’s. Public pensions across the U.S. have faced a crisis of underfunding in recent years. But experts, including Draine, say that in general the funds have performed better in the pandemic than expected. However, that doesn’t mean they’re out of the woods. Pension plans in general have assumptions on investment returns that are way too optimistic, like around 7 percent, and they don’t meet those expectations, said Donald Boyd, a government fiscal expert at the Rockefeller College of Public Affairs and Policy at the University at Albany in New York. In Detroit, its General Retirement System had returns of -0.96 percent in fiscal 2020, and the Police and Fire Retirement System saw 1.6 percent returns, according to documents from the city’s office of budget. That means they were performing way under the assumed 6.75 percent rate of return negotiated during the bankruptcy — and would help drive the increasingly expensive payment estimates. “The low interest return environment remains and that is a huge problem for pension funds that they have not come to grips with,” Boyd said. “In order to think you can earn 7 percent or even 6 percent, you’ve got to take a lot of risk.” However, the Police and Fire fund is on track for a big return of up to 18 percent this fiscal year, said Jeffrey Pegg, a city firefighter who serves on the PFRS board and its investment committee.
‘Stab in the back’ Regardless of the amortization schedules chosen or how well the stock market performs, the city’s budget will be feeling the pain when the pension payments come due again. Pensioners, meanwhile, never stopped feeling it. When Detroit was going through bankruptcy and eliminating what was supposed to be lifetime health care coverage, retired firefighter Parnell’s wife was dying of cancer. “I cannot tell you what a terrible disappointment, a deep hurt that was for me,” Parnell said. “It was a terrible letdown to expose myself to all the gases and poison ... just any innumerable things that firefighters, not just myself, were exposed to as part of the job.” Parnell, who spoke to Crain’s from his hospital bed at DMC Sinai-Grace Hospital in Detroit after a procedure for his own cancer, recalled the sacrifices he made for a job he’d wanted since he was a child. Death was often near: Not just when he almost burned to death in a two-family building nine months into the job or when he fell off a rig while it was in motion, but also when colleagues died in the line of duty. “So my take is, thank me for using me and then throwing me away like yesterday’s old rusted-out hulk,” he said. “At 74, I’m not fond of getting up three, four days a week just to try to pay my almost $600 in health care. That is a terrible, terrible disappointment.” Parnell likened watching the development of downtown over the last few years under Duggan while retirees struggle to make ends meet to experiencing “a stab in the back.” Parnell, whose last job with DFD was heading up its community relations division, said he’s heard rumors retirees may get another “haircut” in 2024. While experts give no indication that’s likely or really even possible, it shows fear brewing. “How do I feel (about the pension cliff )? It’s kind of like I’m in the dark,” Parnell said. “You know there’s a table, but you’re not invited to the table.” Contact: afrank@crain.com; (313) 446-0416; @annalise_frank
years previous, according to PFRS. The General Retirement System legacy plan was 58.8 percent funded in 2020, though it’s fluctuated over the years from 70 percent in 2013 to 62.5 percent in 2014, the year Detroit emerged from bankruptcy. In a June 2020 report, actuaries at Gabriel Roeder Smith & Co. warned a 30year level dollar amortization would cause the General Retirement System’s funding level to drop dramatically to just 12 percent by 2045 as benefits paid to retirees outpace deposits from the city and investment gains. That’s not good, because if asset levels get low enough in later years, to the point of insolvency, benefits get paid out of the already stressed city budget yearto-year, said David Draine, a principal public sector retirement system investigator for The Pew Charitable Trusts. The Gabriel Roeder Smith report actually recommends an even shorter funding period: 15 years or fewer. “Managing liquidity, particularly in that period between 2024, 2025 and 2050, is something the city’s going to have to pay attention to,” said Draine, co-author of a 2018 Pew report titled “The challenge of meeting Detroit’s pension promises.” “But what happens if investments fall short? ... do you get close to or reach insolvency and then what happens when you do? How do you kind of manage that in a way to ensure that ... the workers and retirees are getting the benefits that they’re expecting?” Bogdahn said the longest funding strategy the panel has been considering is 25 years. There’s a balance needed between creating a policy that’s best for the fund’s health, while making sure it doesn’t ruin the city financially — that’s not in the fund’s interest, either, Bogdahn said. But there’s friction there. The city has advocated for longer amortization strategies that are more affordable. Pegg estimates that with a 20-year amortization, the police and fire fund could stay at or above about 60 percent through 2040. But he fears what happens if a 30-year amortization is chosen and there are several bad years for investment returns. Retirees also want to see their cost-ofliving adjustments that were cut during the bankruptcy restored, but Bogdahn said that wouldn’t be “prudent” at this
Detroit’s historic 2013-2014 bankruptcy was defined by the city making good on its promises to retirees. That battle is far from over. Nearly seven years after emerging from bankruptcy court, Detroit faces a new looming financial challenge over how aggressively to pay off pension debt when the city resumes making contributions to employee retirement benefits in just over two years. The assumed annual cost of pension payments starting in July 2023 could dictate what types of services the city provides to businesses and residents in the future, officials say. Mayor Mike Duggan’s administration has been planning for the return of full pension payments in fiscal year 2024 assuming a 30-year amortization or payment schedule. But despite what city officials think is the best payment strategy or what they put into their own calculations, ultimately, the decision is not up to them. The schedule gets determined by the boards and investment committees of Detroit’s Police & Fire and General retirement systems — and they do not answer to Duggan. The Police & Fire pension board has already moved toward adopting a 20year payment schedule. Much like shaving 10 years off a 30-year mortgage, this plan will drastically increase the city’s costs on the front end. The city’s financial officials estimate its first pension payment, for fiscal year 2024, would total $202 million annually for a 30-year amortization period, $217 million for a 25-year period and $241 million annually if the payments are accelerated over 20 years, according to a City Council resolution summarizing Detroit’s four-year financial plan. A 20-year amortization would lead to pensions consuming 24 percent of the city’s budget and be 20 percent more costly than the 30-year option, according to the City Council analysis. In March, the Police & Fire fund’s board voted narrowly, 8-6, to approve the 20-year plan over objections from city-aligned members including council President Brenda Jones, city finance director John Naglick and budget director Steven Watson. However, the board’s recommendation must still go to the plan’s investment committee for approval, as well. The “WE’RE FIDUCIARIES TO THE FUND; WE’RE funds have until fiscal year 2024 to finalize NOT FIDICUARIES TO THE CITY their strategies, per — Joe Bogdahn, chair, investment committee, Jeffrey Pegg, a police Police and Fire Retirement System and fire pension board trustee and investment commit- point, with the fund’s current cash situtee member as well as a firefighter. ation. The city did not provide a representaBogdahn, founder of the suburban tive to give comment for this story. Orlando-based financial investment Pension fund officials and financial firm AndCo Consulting, was recruited experts contend extending out the pay- to serve on the investment committee ment schedule a full three decades in an unpaid role. could endanger the solvency of the While Bogdahn said he can “see the pension funds — and the benefits of friction” between the city and the penthousands of retired civil servants. sion fund, “I don’t have to feel it.” A rolling 30-year amortization is like “The numbers are what the numbers “having a huge credit card bill and mak- are and we are going to make the suging the minimum payment every gestion that we think is best for the fund, month,” said Joe Bogdahn, chair of the what’s best for the city isn’t what we alinvestment committee for the Police locate,” he said. “We’re fiduciaries to the and Fire Retirement System or PFRS. fund; we’re not fiduciaries to the city.” As of 2019, the police and fire retirees’ plan was about 69.5 percent funded, al- Contact: afrank@crain.com; ready down from nearly 82 percent five (313) 446-0416; @annalise_frank MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 35
PENSIONS COMMENTARY
Speed city’s pension payments over 20 years to avoid shortfall BY MICHAEL BERENT
The board of trustees of the Police and Fire Retirement System of the city of Detroit recently voted to adopt a funding policy calling for the system’s unfunded liabilities to be paid down over a 20-year time frame versus 30 years. Much like a home mortgage, the shorter payback time frame, the more money Detroit is required to pay into the system annually and vice versa, the longer payback period, the less money is required annually from the city. As currently adopted, the funding policy increases the city’s estimated obligation to contribute approximately $127 million a year to keep the plan solvent effective in 2024. Several city representatives who serve as trustees on the board advocated that the 20-year policy could severely impact funding of essential city services by requiring a larger share of the budget be committed to retirement funding. While we understand that perspective, the fiduciary role of the trustees is to require funding of the retirement system at levels to ensure benefits are available for the 8,300 retired first responders and their families who earned their retirements. Further it is our job as trustees to ensure the system’s funds are properly invested and managed to provide for future funding of these benefits. The funding policy repayment term is an important board decision.
fund value as more is Trustees have heard paid out by the PFRS in from our expert actuaribenefits than is coming al and other financial in as result of investment advisers that have run returns. numerous “what-if” sceThis results in the unnarios based on multiderfunding of the sysple payback funding tem, which the funding models including 30policy is designed to adyear, 20-year and others. dress. The 30-year model, Michael Berent, a Why is the pension which may be better for Detroit Fire system funding level so city budgets in terms of Department critical? reducing the required sergeant, is What may be lost on a annual contribution, chairman of the lot of people is the fact still forecasts substantial board of trustees that Detroit Police and underfunding of the sys- for the Police and Fire members do not retem in 2034. Fire Retirement ceive Social Security For context, the De- System of the city benefits. troit bankruptcy in 2014 of Detroit. The bottom line is for froze legacy pensions many retired members and allowed the city a 10-year reprieve on pension contri- of PFRS, the retirement benefits butions to the legacy plan effective from the system are all the income they may have to live on during July 1, 2014. That means Detroit was not re- their retirements. The continued quired to make any payments to solvency of the system is critical to fund the pension system since 2014 our retired first responders and and does not have to make further their families. The city has been setting money contributions to the PFRS until aside in a special Retiree Protection 2024. Under the terms of the bankrupt- Fund specifically established for cy, the city has saved tens of mil- supplementing its required paylions of dollars by not having to ments to the system when its paymake these otherwise required ment obligation resumes on July 1, 2023. pension contributions. To date, the city has $235 million What this means for the board and retirees is benefits are being in the fund — a substantial amount paid from the current fund assets at but well below the $1.3 billion proa rate of about $30 million per jected shortfall (as of June 2020) to month with the main source of rev- fund the system until the last beneenue to offset these payments being fit earned is paid. The city has allocated another returns on fund investments. Regardless of how well we are in- $85 million to the fund for fiscal vesting, the lack of contributions year 2022 and proposes another $60 from the city causes a diminishing million in 2023, giving the fund a
projected $380 million plus additional investment income by 2024. There has been generally a good spirit of cooperation between the PFRS and the Duggan administration and its Office of the Chief Financial Officer. We may not always agree on the details, but the city is working to balance its budget and fund pensions. We hope the windfall funding from the recent federal stimulus package — some $800 million — will provide funds to pay for essential services also so important to the functioning and rebirth of our great city. However, what is clear is that the more money contributed into the system sooner the better the longterm health of the system becomes. Also, as a result of the bankruptcy, the city eliminated health care benefits for police and fire retirees. Many retirees find themselves in a “health care gap” retiring after 20plus years on the job but years before they qualify for Medicare at age 65. This leaves many with a gap in health coverage and few can afford private health insurance on fixed incomes. The PFRS is seeking help to allow retirees to obtain Medicare coverage prior to age 65. This issue must be addressed at the federal level and we are asking our congressional representatives to help first responder retirees get the health care they deserve. PFRS has written to all federal representatives of the state to encourage them to approve legislation changing the Medicare age for police officers and firefighters to close the health care gap.
COMMENTARY
BY JOHN KENNEDY
ous position. With baby boomers hitting retirement age and Michigan’s population stalled, too many communities are facing a serious problem. To truly fund current obligations, some cities would need to spend 100 percent of their operating budget every year for 20 years to retire this combined debt — without spending one dollar on a cop, firefighter or public works em-
Decades ago, promises were made to municipal and school employees that they would retire with a pension. Those employees then spent their career working toward retirement — John Kennedy, expecting those pension president & CEO of dollars to be there when Autocam Medical, they retired. Unfortunate- is chairman of the ly, the reality in many cas- West Michigan es is that those dollars ar- Policy Forum. en’t there. Why? Political math. Diverting funds from previously ployee. This is obviously not possible and flush pension funds to other municipal projects, underestimating or would jeopardize public safety. However, unless changes are changing key assumptions to free spending for immediate needs and made now, our options are limited: not planning for the future have left massive tax increases and drastic Michigan communities in a danger- cuts to services or breaking the 36 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
promise of benefits to public employees counting on them. Failing to address these shortfalls now only makes for a bigger crisis in the long term. Michigan’s largest municipalities have been chronically underfunding their pensions for many years. In 2019, the Mackinac Center did a study on Michigan’s 100 largest municipalities, determining that these municipalities have a total unfunded pension liability of $5.572 billion. This number has had significant growth in just a three-year period. In 2016, the unfunded pension liability was $4.6 billion, an increase of $972 million. Detroit’s bankruptcy shows that real people get hurt when funds aren’t saved for promises made to them, but Detroit is not alone. According to the Mackinac Center
GETTY IMAGES
Detroit’s bankruptcy still highlights need to shift away from pensions
study, Kalamazoo Township saw its pension debt expand from around $2 million to over $2.7 million in just three years. A simple change (unrealistic) in the assumption to payroll growth by 0.75 percent in the Michigan Public School Employees’ Retirement Sys-
tem freed up cash in the short term but will mean this fund is shorted in contributions and investments by nearly $2 billion over the next 20 years, endangering teachers and kicking the obligation to the kids they’re teaching. How will Michigan’s communities
find the hurt kids If mak fund mad Th nici like es a P 401( Mic to a pen hea style L well ing tow con trac Th with ing care dilig are met state
PENSIONS COMMENTARY
Stimulus was chance to pull cities away from pensions
GETTY IMAGES
GETTY IMAGES
BY ERIC LUPHER
erm d in by t 20 and kids
ities
find these dollars without passing the buck to the future, and risk hurting workers and crushing our kids? If local elected officials want to make pension promises, they must fund those promises when they’re made. The best solution is to move municipalities to a prefunded system, like a 401(k), to ensure that promises are kept. Private industry began to shift to 401(k)’s in 1980, and new state of Michigan employees were moved to a 401(k) in 1997. Beyond just pensions, state of Michigan retiree health care was moved to a 401(k)style system in 2011. Local municipalities would be well-served by following, and sticking to, the state of Michigan’s move toward a 401(k) system rather than continuing down the dangerous track of pensions. The state made the right move with its shift and has stopped adding to its pension and retiree health care obligations, but still must be diligent in ensuring past promises are funded and all obligations are met in communities across the state.
Detroit’s bankruptcy highlighted the real risk that the state and taxpayers across Michigan might have been held responsible for the obligations of its subdivisions, our counties, cities and townships. Legislators can’t just defer decisions to local leaders, they must hold communities accountable for responsibly funding their obligations. A 401(k) system allows employees to control their finances — keeping their retirement dollars out of the political winds — and allows someone to take their dollars with them as they change jobs or if they decide to leave prior to the 10-year vesting period. Gone are the days of working at the same place for your entire working life. The current working generations are more likely to change jobs than their parents’ and grandparents’ generations, making a portable retirement system more logical for their future. Michigan’s municipalities need to focus on transitioning to systems that work for their communities, keeping promises to their employees and making sure that we make responsible corrections, and fast.
State and local government leaders throughout Michigan are discussing ideas for transformative uses of federal COVID-19 stimulus funding. However, they are forbidden from using this funding for what I believe could be the most transformative investment — assistance to get out from under their legacy debts, pension and retiree health care costs. This would free up precious resources to make our communities safe, attractive places to live and to run a business. The $1.7 trillion American Rescue Plan Act (ARPA) funding is the fourth federal package to help individuals, businesses, the health care sector, and governments survive the pandemic. The purpose of the ARPA funding is to stabilize the economy and stimulate future growth. ARPA included $350 billion for state and local governments, including $6.5 billion to the State of Michigan and $4.4 billion to its local governments — cities, townships, and counties. Our current atmosphere of divisive politics led to the insertion of provisions in the American Rescue Plan Act forbidding state governments from paying for legacy costs. Likewise, the Treasury Department’s guidance restricts local governments from funding their own pension needs. These restrictions are striking. ARPA and previous COVID-relief packages have sent money to individuals to help families get through the pandemic. If Congress had included similar provisions on this funding, it would have allowed use of the funds for the purchase of appliances or electronic equipment and forbidden their use to pay credit card bills or back rent. Local governments need this funding to backfill revenue loss
workers today suggests caused by the pandemic. a competitive wage is Many local governments more important than suffered revenue losses retirement benefits. because of reduced ecoThe ability to attract nomic activity, fewer workers, the balance bepeople parking in lots or tween the cost of current ramps, less use of parks and deferred compenand recreation facilities, sation, and sustainabiliand uncompensated ty would be improved if water and sewer use, Eric Lupher is competitive wages were among other things. president of the offset by transitioning to Local government of- Citizens Research defined contribution reficials are conjuring Council of tirement benefits. ideas for transforma- Michigan. In the private sector, tional change with this many businesses have funding. Helping local governments get out from under transitioned their employees to the debt obligations related to re- these 401(k)-type retiree benefits. tirement costs should be the next Those businesses may have been constrained by employment conhighest, best use of the funding. The Michigan Constitution re- tracts (such as union contracts), but quires local governments to fund if those hurdles can be overcome the their pensions. Some have done a pension benefits can be altered or better job at this than others. A task abrogated. Local governments canforce report at the end of the Snyder not transition to these plans as easily. The state constitution makes administration identified about $7.4 billion of unfunded pension liabili- earned pension benefits an obligation that cannot be undone. This ties. These statewide totals are de- provision constrains local governceiving. Michigan’s larger local ments’ options for managing the figovernments have professional nancial bill for legacy pension debts. The pension plans can be closed staff to provide services. The economics of competing for to new employees, forcing them capable labor has dictated that these into 401K-type plans, but they canlocal governments offer competitive not diminish the benefits or end wages with retiree benefits, usually the plans for retirees or current employees vested in the plans. defined benefit pension plans. Maintaining parallel retirement Indeed, a very large share of the statewide total unfunded pension systems for employees and retirees liabilities is owed by local govern- creates additional costs at a time when the municipal finance sysments in Southeast Michigan. Local governments in most of tem is placing fiscal pressure on the state have little staff. Most these same governments. Local governments are not likely townships, villages, and small cities do not have professional staff to transition to defined contribuand do not provide retiree benefits tion plans until they receive financial assistance to help bridge the to their small or part-time staff. For many years, the average lo- transition costs. The influx of federcal government paid lower salaries al funding could have been an opthan the private sector, but the em- portunity to assist in the transition. Because it is precluded from this ployees knew they would be taken care of in retirement. That has purpose, transition assistance should become a priority of the changed over recent decades. The transitory nature of young state government.
Bernard Harris, a field services technician for the Detroit Water and Sewerage Department, turns on a residential water line in March 2020. Municipal worker pensions have come to weigh heavily on the finances of many large cities. | CITY OF DETROIT FLICKR MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 37
PENSIONS COMMENTARY
BY STEPHAN CURRIE
panel, which produced a series of limited but practical recommendations The citizens now serving in to ease the strain. the Michigan Legislature did All the Legislature mannot create the fiscal crisis that aged to do, unfortunately, now grips our 83 counties and was to require locals to other local governments. generate more reports The crisis is so large, so com(i.e., more work for locals) plex, it took decades to create — decades of poor choices, of- Stephan Currie is for the state to look at. And if you look at those ten made with good, or at least executive director reports, you will see an not malicious, intentions. of the Michigan unsurprising fact: CounNevertheless, time after Association of ties are still squeezed. In time, legislators eased their Counties, which fiscal 2019, for example, own financial challenges by represents county governments had deepening the hole that our 83 Michigan’s at least $3.5 billion in uncounty governments are county trapped in. Revenue-sharing governments and funded liabilities for retiree pensions and health cuts. Unfunded mandates. Re- the 622 elected care coverage. strictions on raising and using county And what has the Legisrevenue. The encroachments commissioners lature been doing in the are many, the effects enor- who lead them. meantime? Not helping. mous. Learn more at In 2013, it enacted an Today, we are urging them to www.micounties. exemption on property take the first step to better fiscal org. taxes to help Michigan health: Stop making it worse. veterans — a laudable Four years ago, state leaders briefly noticed the problem around goal. But they did it without compenthem and convened a task force to sating local governments. That exempstudy the pension and retiree health tion has carved $1.7 billion in taxable care pressures squeezing local gov- value off local accounts. In the last three legislative sesernments. I was proud to sit on that
sions, 2015-2020, legislators filed no fewer than 140 separate bills involving exemptions to the property tax, the central revenue source for Michigan counties. Many of these bills were motivated by noble purposes (job creation) or targeted for worthy groups (disabled veterans, charitable groups), but what they all lacked was any recognition of, or response for, the resulting cuts to local resources and local services. And consider, a recent analysis by the nonpartisan Lincoln Institute of Land Policy found that not only is Michigan “unique in the restrictiveness of the state’s property tax limits,” but “the property tax is particularly important for local governments’ fiscal health in Michigan because they have little access to other types of taxes to raise revenue.” Our crisis only worsened in the aftermath of the Great Recession a decade ago. As the state’s economy and resources bounced back, Michigan’s local governments, trapped underneath two interlocking state restrictions on property taxes (Proposal A and the Headlee Amendment), saw their resources plunge and never really return.
GETTY IMAGES
To fill the pension hole, Legislature should stop digging
It took 11 years for nominal property tax collections to recover to their 2008 level. Worse, adjusting for inflation, counties are now collecting almost $1 billion less than they did in 2008. Then, of course, COVID hits. Across the state, county leaders worked to ensure the continued delivery of public services while doing their best to protect the health of residents and county employees. The strains have been severe, but counties have met the challenge – so far. But we’ve all seen what COVID has done to local economies, with empty storefronts and unutilized office buildings a common sight. Those images will, at some point, translate into lower property values and lower property taxes (used to pay for those local services and cover those local liabilities to public servants).
Despite this, some legislators are backing more ideas that will create more problems. They are pointing to the historic investment to counties in the American Rescue Plan as proof the state can further reduce its commitment — even though the ARP funds cannot, by law, be used to address pension or retiree health care needs. And they continue to file and tout property tax exemptions (10 bills so far in 2021). With each of these special breaks, more of the burden for public services shifts to everyone else, the small businesses and households that constitute the majority of the state’s taxpayers. So, until the Legislature can engage in a good-faith discussion on how to address the local government fiscal crisis, we have one simple request to lawmakers: Stop making it worse.
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38 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
CRAIN'S LIST | GRADUATE BUSINESS DEGREE PROGRAMS Listed alphabetically TYPES OF PROGRAMS
MINIMUM GPA
MINIMUM GMAT/GRE
COST PER CREDIT HOUR AS OF MAY 2021
DEGREES OFFERED
MICHIGAN CAMPUS LOCATIONS
ANDREWS UNIVERSITY
MBA; MSA in Organizational Management
Berrien Springs
On-campus, online, offcampus
2.60
Varies
$1134
AQUINAS COLLEGE
Master of Management with concentrations in organizational leadership, marketing management and sustainable business
Grand Rapids
Part time, full time
3.0, two years work experience
450
$613
BAKER COLLEGE CENTER FOR GRADUATE STUDIES
MBA, doctor of business administration
Auburn Hills, Cadillac, Jackson, Muskegon, Owosso, Royal Oak
Online, full time, and part time
2.5
Optional
$695 for master's, $915 for doctorate
CENTRAL MICHIGAN UNIVERSITY
M.S. in administration, information systems; MBA; master of arts in economics, M.A. in economics; online master of entrepreneurial ventures; doctorate in health administration, educational technology
Clinton Township, Dearborn, Detroit, East Lansing, Grand Rapids, Mount Pleasant, Traverse City, Saginaw, Southfield, Troy
Full-time, part-time, evenings, weekends, in person, hybrid and online
Varies by degree
Varies by degree
Resident: $637 for master's, $726 for doctoral. Nonresident: $850 for master's, $940 for doctoral
CLEARY UNIVERSITY
MBA in analytics, global leadership, health care leadership; M.S. in culture, change and leadership
Howell, Detroit
Online, blended
2.5
NR
$975
CONCORDIA UNIVERSITY - ANN ARBOR
Fully online MBA with over 15 concentrations and Doctorate in Business Administration (DBA) with three concentrations. Both flexible to fit your needs.
Ann Arbor
Full time, part time, evenings and online
Please see web for full requirements
NR
$760
CORNERSTONE UNIVERSITY, PROFESSIONAL AND GRADUATE STUDIES
MBA; MBA concentrations in health care administration, global business, project management, finance; M.S. in management
Grand Rapids Kalamzaoo
Full time, evenings, online
2.7
NR
$550-595
DAVENPORT UNIVERSITY
MBA with concentrations in finance, health care management, human resource management, marketing and strategic management, executive MBA, others
Detroit, Grand Rapids, Lansing, Holland
In-seat and online, fullor part-time, days and evenings.
2.75
N/A
$906
EASTERN MICHIGAN UNIVERSITY Ypsilanti 48197 734-487-4444
MBA; M.S. degrees in accounting, finance, human resources/organizational development; information systems; integrated marketing communications; taxation
Ypsilanti
Full time, part time, evenings, and/or online
2.75 (3.0 for MSA, MSF, MST)
450 (500 for MSA or MST; 550 for MSF). May be waived.
$826
FERRIS STATE UNIVERSITY
Master's in Business Administration
Big Rapids (Majority of courses in this program are offered online)
Online, weekends, campus
3.00
500/upper 50th percentile
$659 (U.S. residents and Canadians); $989 (international)
GRAND VALLEY STATE UNIVERSITY SEIDMAN COLLEGE OF BUSINESS
MBA, executive MBA, M.S. in accounting. MS in Taxation
Grand Rapids
Part time, hybrid, fulltime(for MSA only)
3.0
-- 1
$755
KETTERING UNIVERSITY
MBA with concentrations in global leadership, supply chain and ERP, operations management, health care management. Additional online degrees and certificate programs available
Flint
Online, full-time
3.0
NR
NA
LAWRENCE TECHNOLOGICAL UNIVERSITY
MBA, M.S. in Information Technology, dual degrees: MBA/M.S. in Information Technology, MBA/Master of Engineering Management, MBA/ Master of Architecture
Southfield, Clinton Township, Taylor, Plymouth, Warren
Full time, part time, and online
3.0
Not required unless undergrad GPA is under 3.0
$1237
MADONNA UNIVERSITY
MBA; M.S. in health services administration; online; M.S. in accountancy, online; nursing administration/business administration dual degree (MSN/MBA); M.S. in criminal justice leadership and intelligence; 4 certificate programs
Livonia, Gaylord, Macomb
Part time, evenings, weekends and online
3.0
NR
$910
MICHIGAN STATE UNIVERSITY - ELI BROAD COLLEGE OF BUSINESS
MBAs: Full-time and executive; M.S. degrees in accounting, business data science and analytics, finance, financial planning and wealth management, healthcare management, management strategy and leadership, marketing research, supply chain management. Ph.D.s in accounting, finance, information technology management, logistics, management, marketing, operations and sourcing management.
East Lansing; Troy
Full time, part time, evenings, weekends, and online
Varies
Varies
NA
East Lansing 48824 517-355-8377
MICHIGAN TECHNOLOGICAL UNIVERSITY COLLEGE OF BUSINESS
TechMBA, Engineering Management, Accounting, and Applied Natural Resource Economics
Houghton, Michigan
Campus, full time, part time
3.0
550/NR
$1131
NORTHERN MICHIGAN UNIVERSITY WALKER L. CISLER COLLEGE OF BUSINESS
MBA, master's of public administration
Marquette
Full time, part time, campus, online and evenings
3.0
500/NR
$693
NORTHWOOD UNIVERSITY RICHARD DEVOS GRADUATE SCHOOL OF MANAGEMENT
12-month Accelerated MBA Evening MBA Online MBA Master of Science in Organizational Leadership (MSOL) Master of Science in Finance (MSF) Master of Science in Business Analytics (MSBA) Doctor of Business Administration (DBA)
Full time and part time offerings. We also recently launched a Graduate Certificate in Strategic Financial Leadership.
3.0
A GMAT/GRE score is not required for admission
Tuition varies by program
OAKLAND UNIVERSITY SCHOOL OF BUSINESS ADMINISTRATION
MBA, 100% online MBA, weekend executive MBA, M.S. in IT management, master of accounting; graduate certificates and post-master's certificates offered
Rochester, Clinton Township, Mt. Clemens
100% online, partial online, part time or full time based on student choice, evenings, some Saturdays.
NA
NA 2
NA
OLIVET COLLEGE
MBA with concentrations in Insurance, Enterprise Risk Management, and General Business
Olivet
100% Online with a flexschedule format designed for the working professional.
2.75
NR
$861
SAGINAW VALLEY STATE UNIVERSITY MBA
Saginaw
Online, hybrid, part time, evenings
3.0
450
$623
SIENA HEIGHTS UNIVERSITY
Southfield, Jackson, Monroe, Adrian, Battle Creek, Benton Harbor, Lansing, Dearborn, Kalamazoo
Online
3.0
NR
$735
Berrien Springs 49104 269-471-6321 Grand Rapids 49506 616-632-2924
Flint 48507 800-469-3165
Mount Pleasant (and other locations) 48859 989-774-4000
Howell 48843 517-338-3332
Ann Arbor 48105 734-995-7300
Grand Rapids 49525 616-222-1448 Warren 48092 810-459-0587
Big Rapids 49307 231-591-2000
Grand Rapids 49504 616-331-7400
Flint 48504 800-955-4464
Southfield 48075 248-204-2210 Livonia 48150 734-432-5763
Houghton 49931 906-487-2668
Marquette 49855 906-227-2900
Midland 48640 800-622-9000
Rochester Hills 48309 248-370-3287
Olivet 49076 269-749-7626
Saginaw 48710 989-964-6096
Southfield 48075 248-799-5490
M.A. in leadership in organization, health care and higher education; MBA
Researched by Sonya D. Hill: shill@crain.com | This list is an approximate compilation of colleges with a physical presence in Michigan. Information for this list was provided by the schools through surveys or their websites. It is not a complete listing, but the most comprehensive available. NA = not available. NR = not required. NOTES: 1. Waiver possible based on academic and work experience. 2. For degree programs, scores must be within 5 years or less at time of intended enrollment. Requests for waivers accepted and subject to approval of Graduate Admissions Committee.
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CRAIN'S LIST | GRADUATE BUSINESS DEGREE PROGRAMS Listed alphabetically TYPES OF PROGRAMS
MINIMUM GPA
MINIMUM GMAT/GRE
COST PER CREDIT HOUR AS OF MAY 2021
DEGREES OFFERED
MICHIGAN CAMPUS LOCATIONS
SPRING ARBOR UNIVERSITY GAINEY SCHOOL OF BUSINESS
MBA with concentrations in health care administration, management, organizational consulting and executive leadership. Master of arts in management and organizational leadership; master of arts in communication
Southfield, Temperance, Jackson, Spring Arbor, Lansing, Grand Rapids, Kalamazoo, Flint, Gaylord
Face to face (one night a week) or online, hybrid
3.0
NR
$738
UNIVERSITY OF DETROIT MERCY
MBA; JD/MBA; MBA/MSCIS; MBA/MHSA; MBA for Healthcare Professionals; 5-year BS/MBA.
Detroit: McNichols Campus; Detroit: Riverfront Campus; and online
Part time MBA, full-time MBA, and online MBA; Several certificates available.
3.0
Can be waived with professional experience.
$809
UNIVERSITY OF MICHIGANDEARBORN COLLEGE OF BUSINESS
MBA; Online MBA; MS in Accounting, MS-Business Analytics, MS in Finance, MSInformation Systems Management, MS-Marketing, MS-Supply Chain Management; MBA dual degrees with MS in Finance, MS-Information Systems, MS-Supply Chain Management, MSE in Industrial and Systems Engineering, Master of Health Services Administration; dual MS in Accounting with MS in Finance
Dearborn
Full time, part time, evenings and online
Competitive with applicant pool
Competitive with applicant pool
$1010
UNIVERSITY OF MICHIGAN-FLINT SCHOOL OF MANAGEMENT
MBA with concentrations in accounting, computer information systems, finance, health care management, international business, supply chain and operations management, marketing and innovation management, and organizational leadership; M.S. in accounting; graduate certificate in business; MS in leadership and organizational dynamics
Flint
Part time, full-time, online, evening, hybrid/ Net+
NA
GMAT waiver available 450/ 146V-146Q
$809
UNIVERSITY OF MICHIGAN ROSS SCHOOL OF BUSINESS 1
Full-Time MBA, Weekend MBA, Online MBA, Global MBA, Executive MBA, Master of Management, Master of Accounting, Master of Supply Chain Management, and PhD.
Ann Arbor
Full-time, part-time (weekend and online), and executive education
Varies
NR
NA
UNIVERSITY OF WINDSOR ODETTE SCHOOL OF BUSINESS
MBA; MBA/JD dual; master's in management and manufacturing, logistics, supply chain and HR management
Windsor
Full time
2.75
NA
NA
WALSH COLLEGE
MBA; Cyber MBA; Tech MBA; M.S. degrees in accounting, data analytics, finance, information technology, information technology leadership, management, marketing, taxation; dual MBA/MS in finance, dual MBA/MS in IT leadership, dual MBA/MS in management, dual MBA/MS marketing; graduate certificates in cybersecurity, human resource management and global program and project management
Troy; classes at Macomb University Center, Oakland Community College-Orchard Ridge and St. Clair County Community College
Business and technology, full-time, part-time, evenings, on ground and online/ remote
Varies
NR
$850
WAYNE STATE UNIVERSITY MIKE ILITCH SCHOOL OF BUSINESS
MBA; MBA-J.D. dual; M.S. degrees in accounting, finance, data science & business analytics, Executive MS in Automotive Supply Chain Management
Detroit, Livonia
Full time, part time, evenings, weekends and online
2.75
GMAT 450; GRE 149 Verbal/149 Quantitative; Ph.D. 600 GMAT
$788
WESTERN MICHIGAN UNIVERSITY, HAWORTH COLLEGE OF BUSINESS
MBA, MS in Accountancy, Graduate Certificate and MS in Cybersecurity and MBA/MD
Grand Rapids, Kalamazoo
Evening courses (full or part-time), online
2.5
GMAT 450 or equivalent GRE score
$681
Spring Arbor 49283 517-750-6611 Detroit 48221 313-993-1200
Dearborn 48126 313-593-5460
Flint 48502 810-762-3160
Ann Arbor 48109 734-615-5002
Windsor, Ontario N9B 3P4 519-253-3000 Troy 48083 248-823-1600
Detroit 48201 313-577-4511
Kalamazoo 49008 269-387-5133
NOTES: 1. Also known as Stephen M. Ross School of Business at the University of Michigan
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40 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
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Executive Director Grayling Main Street
Adrian Joseph
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Senior Vice President, Community Development Michigan Economic Development Corp.
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introduced and as the Metro Times recently reported, the farm is in ruins. It was a great idea that never happened,” Lakeland Fresh Farms spokesperson Amy Wilcynski, public relations director at Berline, said in an emailed statement. “While RecoveryPark is a nonprofit, Lakeland Fresh was created using a for-profit business model. While both use hydroponic farming, this is not a new technology and it is not proprietary.” RecoveryPark released many of its employees in February 2020 and several later joined Lakeland Fresh in October 2020, she said. “None of these employees had a noncompete agreement at the time they were hired.” The team assembled at Lakeland Fresh includes four or more former employees of RecoveryPark, including Corace, who served as COO for RecoveryPark briefly last year. The nonprofit’s chief grower, Jeff Gilbert, who left in February 2020, is now vice president and chief scientific officer at Lakeland. And Dan Buckley, who was project manager at RecoveryPark for nearly three years before also leaving in February of last year, now serves as director of projects and facilities at Lakeland. In a report last week, Detroit Metro Times quoted an email from RecoveryPark CEO Gary Wozniak that reportedly said the nonprofit’s staff were terminated in February 2020 after the equity investors decided not to move forward. “The decision has been made by the equity investors not to proceed to a closing,” Wozniak wrote in the email, according to the Detroit Metro Times story. “We have no choice but to start winding down our operations.” In more than half a dozen letters sent to Crain’s Detroit Business last week, supporters of RecoveryPark, including vendors, the Denby Neighborhood Alliance and the head of the nonprofit that launched RecoveryPark before it spun off voiced concerns and called for investigation into Lakeland Fresh and its principals. Concerns center on the prior knowledge the Lakeland Fresh team had of RecoveryPark’s commercial hydroponics plan and their participation in a similar project outside of Detroit that isn’t expected to create jobs for citizens returning from prison, as RecoveryPark aims to do. Dwight Vaughter, CEO of Detroit nonprofit SHAR Inc., which birthed RecoveryPark in 2008, called out the similarity between the Lakeland Fresh and RecoveryPark plans and concerns that its former investors will now benefit from a very similar venture operating from the suburbs rather than Detroit. “The original thought underlying RecoveryPark and our investment was to create employment opportunities for disadvantaged individuals coming out of the various treatment programs as well as those returning home to the Detroit area following periods of incarceration,” he said in the letter. RecoveryPark provided employment opportunities but also created a business venture that could transform and re-purpose vacant land in Detroit through urban agriculture, Vaughter said. “This was a huge undertaking, and RecoveryPark has diligently ate the elephant — a bite at a time, becoming its own 501(c)3, securing funding, working to change land use regulations, and ultimately, hiring people and providing produce to local stores
CRAIN’S DETROIT BUSINESS
May 24, 2021
RecoveryPark released many of its employees in February 2020. | RECOVERYPARK
and restaurants.” “We strongly support the free enterprise system that this country is based on, but equally we must balance this by operating in an ethical manner Wozniak without violating conflicts of interest and other business related principles,” Vaughter said. His executive assistant, Patricia Scott, has served as recording secretary for RecoveryPark since 2008, chronicling meetings of its principals, board members and investors. Meetings on RecoveryPark’s plan for commercial hydroponics began three to four years ago, she said in a letter to Crain’s. “It is interesting to me that now former investors and staff members, who sat in meetings discussing this very same type of venture, are now launching this type of project.” “Those now former investors and staff have been privy to valuable information: business contacts, financials, intellectual property especially, and the like,” Scott said. The idea that the previous investors in the concept developed by Wozniak “would pull out of the investment and take the concept outside of Detroit is unethical to say the least,” said Sandra Turner-Handy of the Denby Neighborhood Alliance. “This is a blatant example of the rich getting richer off the backs of the poor who are left to struggle from life’s challenges of living in a city of high poverty and few jobs, centered on changing lives of returning citizens and those recovering from addiction.”
CONCERNS CENTER ON THE PRIOR KNOWLEDGE THE LAKELAND FRESH TEAM HAD OF RECOVERYPARK’S COMMERCIAL HYDROPONICS PLAN AND THEIR PARTICIPATION IN A SIMILAR PROJECT OUTSIDE OF DETROIT THAT ISN’T EXPECTED TO CREATE JOBS FOR CITIZENS RETURNING FROM PRISON.
In a letter of his own to the editor of Crain’s, Wozniak, took issue with the Detroit Metro Times article published last week and specifically, with comments made by RecoveryPark’s former chief impact officer, Anna Kohn. The Metro Times dove into Wozniak’s past, including the five years he served in a minimum security federal prison for using money entrusted to him as a stockbroker to feed his drug addiction, the hurdles he faced getting a job after he was released, the companies he subsequently launched before he came up with the idea to launch a commercial farm to provide revenue for SHAR and jobs for those coming out of prison, its spinoff, the support garnered for the commercial farming/hydroponics operations and subsequent financial hardships it faced. The story called into question whether RecoveryPark’s plans for the growing operation would recover, after news broke of the investors’ departure and Wozniak spoke about the hardships the nonprofit had faced amid the pandemic. But Wozniak maintains the organization still has some financing in place and plans to move forward. Kohn has been gone from the nonprofit for 15 months and is therefore not in a position to talk about its operations and finances since her departure, Wozniak said in the letter to Crain’s editors. “More perplexing are her comments about me personally and how she views people’s ability to overcome a criminal past and change,” he said pointing to Kohn’s comment that she wanted to believe formerly incarcerated people can change, but has learned they generally can’t. “These are jarring comments that contradict the work that Kohn says is important to her. Coming from the Chair of the State Community Corrections Board and serving as the president of the board for Safe & Just Michigan, Ms. Kohn’s remarks are a reminder of criminal justice in the 1930s,” Wozniak said in his letter. He’s calling on Gov. Gretchen Whitmer to immediately remove Kohn from her roles at the two organizations. “She demonstrates a callousness toward returning citizens that deserve better,” Wozniak said. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch
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Oswald Companies announces the addition of Michael Doran, Sales Executive. In his role, Doran will advise clients on Doran business succession planning, life insurance, disability income insurance, long-term care options, safe investments, and estate planning. Doran draws on an extensive Buehner prior history in personal wealth management which will be an asset to his clients. Lisa Buehner, Senior Private Client Advisor, has joined Oswald’s Michigan team. With nearly 30 years’ experience in the insurance industry, Buehner will serve as the key relationship manager for Oswald’s personal risk management clientele. Her focus will be on preserving the personal assets of executives, business owners, and highly successful individuals and families.
Fraser Trebilcock is pleased to announce the addition of Randy L. Tahvonen to the firm. Mr. Tahvonen served Clinton and Gratiot Counties for 42 years, including 15 years as Chief Judge, before retiring in January, 2021. While judge, he handled the majority of the felony criminal docket, divorce cases not involving children, and the entire civil litigation docket in both counties. He is a graduate of the Detroit College of Law and holds a Bachelor’s Degree from Michigan State University.
PROMOTION? BOARD APPOINTMENT?
Antenna Group has appointed auto industry veteran Katelyn Davis as Director of Mobility. Davis will drive the firm’s rapidly expanding mobility practice, providing strategic counsel and supporting business development and client networking initiatives. The first Antenna member based in Detroit, Davis brings a unique background that incorporates automotive domain expertise combined with public relations and marketing excellence. This year she was recognized in the DBusiness 30 in their Thirties.
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UBS to open downtown Detroit office By Annalise Frank
October 30, 2017 | crainsdetroit.com
• UBS plans to open wealth management office in Detroit in mid-2018 • Office to include 6,000-squarefoot space30,nonprofits and civic October 2017 | crainsdetroit.com
UBS to open downtown Detroit office By Annalise Frank
groups • UBS plans to open wealthcan use free of charge • Bedrock-owned buildings
office in Detroit “I’m impacting lives now. management I know undergoing renovations in mid-2018 • Office 6,000-squarethe effect food insecurity had onto includeUBS plans to open an office in down-
UBS to open downtown Detroit office
foot space nonprofits and civic Detroit in mid-2018, the company Annalise Frank growing groups meByand my peers up, andcan usetown free of charge announced Monday. • Bedrock-ownedUBS buildings Group AG’s U.S. and Canadian UBSan plans to open wealth this•was opportunity toundergoing make a renovations wealth management business, New Jermanagement office in Detroit sey-based Wealth Management change I wish an adult UBScould plans to open an office UBS in downin that mid-2018 Americas, to lease 13,000 square UBS will lease 13,000 feet from Bedrock LLC starting around mid-2018 in two buildings: the Grintown Detroit in mid-2018, theplans company • Office to include 6,000-squarefeet on the connected sixth floors of nell Building (center left) at 1515 Woodward Ave. and the Sanders Building (center right) at 1529 have made for me.” announced Monday. foot space nonprofits and civic buildings at 1515 Wood- Woodward Ave. Group AG’sneighboring U.S. and Canadian groups can use free UBS of charge ward Ave. and Fourteen metro Detroit employees don’t really have adequate resources wealth management business, New 1529 Jer- Woodward Ave. • Bedrock-owned buildings The twoManagement buildings built around 1900 are will move to the downtown office to or adequate office space to host dosey-based UBS Wealth undergoing renovations by Detroit-based will lease LLC 13,000 feet from Bedrock LLC starting around mid-2018 buildings: Grin- meetings or things nor events the or board start, but the office has the capacity toin two Americas, plans toowned lease 13,000 square UBSBedrock nell Building (center at 1515 Woodward andnew the Sanders Buildingalong (centerthose right) at 1529 Bush said. and are undergoing said left) lines,” hold another six toAve. eight staff memon inthe connected sixth floors of renovations, Reprinted with permission from Crain’s Detroit Business. © 2019 Crain Communications Inc. All RightsUBS reserved. plans to open anfeet office downAve. for bers, Bush said. It will act as an extension John Bush, 60, WoodMichiganWoodward market head UBS’s investment in the new ofneighboring buildings at 1515 Further duplication without permission is prohibited. Visit www.crainsdetroit.com. #CD1134 town Detroit in mid-2018, the company UBS Wealth ManagementFourteen Americas.metro of fice will resources be “significant,” he said, as its the other wealth management offices. don’t really have adequate Detroit employees announced Monday. ward Ave. and 1529 Woodward Ave. “The real impetus open atonew The twoCanadian buildings built around 1900 arefor us “uniqueness Bush is based theadequate Birmingham office space to hostcomes do- at a price.” He said willto move the downtown office out to ofor UBS Group AG’s U.S. and office inBedrock Detroit is to support what’s owned by Detroit-based LLC he could or not yet provide an estimate but travels to to the will meetings norothers eventsand or board things start, but the goofficeoffice, has the capacity wealth management business, New Jering renovations, on in the city, ” saidhold Bush, a Detroit and are undergoing said on the be spending in thealong Detroit branch. those lines,” Bush said.cost of the build-out, as some another six to eight new stafftime memsey-based UBS Wealth Management nativemarket who grew City. “We John Bush, 60, Michigan headup forin Garden have yet The location have a 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: theless Grin- contracts Americas, plans to lease 13,000 square UBS will lease 13,000 feetbers, UBS Wealth Management Americas. really felt like we wantedofto have a physfice will be “significant,” hecompany said, as its the other wealth management offices. The plans to start its buildtraditional, more “urban” feelright) than 1515 Woodward Ave. and the Sanders Building (center atthe 1529 feet on the connected sixth floors of nell Building (center left) at “The real impetus for us to open adowntown new ical presence to reinforce “uniqueness comes at saidnext year, depending Bush is based outothers, of the he Birmingham outa price.” processHe early said. New York-based architecneighboring buildings at 1515 Wood- Woodward Ave. office in Detroit is our to support go-particular vision what’s for this areatravels and toture he will could not yet an estimate office, but the firm others and will Cale on when renovations on the buildings Verderame design the provide ward Ave. and 1529 ing Woodward don’t really have adequate resources Fourteen metro Detroit employees on in theAve. city,”tosaid Bush, a Detroit reinforce our on Barton the cost of the build-out, as some be spending time inspace; the Detroit branch. are complete. Southfield-based Malow The two buildings builtnative around 1900 areup in adequate office space to have host dowill moveCity. to tothe officelocation to or will who grew Garden “Wedowntown commitment contracts finalized. The Detroit have aon less based in Switzerland, employs Co. has signed as general contractor.yet to beUBS, owned by Detroit-based Bedrock nor events or board or things start, thea physoffice has the capacity really felt likeLLC we wanted tobut The company plans to startacross its buildtraditional, moreto“urban” than the outmeetings the city. ” have 60,000 54 countries. About 34 UBS feel plans to rent about half of the and are undergoing renovations, along those lines,” Bush said. early next year, depending hold six to eight new he staff memical presencesaid downtown toWealth reinforce others, said. New office York-based architecUBS another — 6,000 square out feetprocess — at no cost percent of them work in the AmeriJohn Bush, 60, Michiganour market head UBS’s investment the renovations new of- on the buildings bers, said. It will act an extension vision for for thisMparticular onin when tureasfirm VerderametoCale will design theother a n aBush g e marea e n tand cas, according to a news release. UBS nonprofits and organizations, 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 out of the Birmingham to has Bush UBS, based in Switzerland, employs Co. has signed on as general contractor. metro DeWoodward Gallery. Its design and art ploys 280 in Michigan, 225 of whom office in Detroit is to support what’s go- office, but travels to theUBS heabout couldhalf not an estimate others and the city. ” 60,000 across 54 countries. 34 Detroit. plans towill rent will out of yet the provide troit offices in are basedAbout in metro aim to showcase Detroit’s history ing on in the city,” said Bush, on the cost the build-out, asthem somework in the Amerispending Detroit branch. UBS a Detroit Wealth B be percent office — 6,000 square at noofcost irm i n g h a time m , in the The wealth management business andfeet a— hub-and-spoke layout ofwill renative who grew up in Garden contracts have yet tocas, be finalized. M a n a gCity. e m“We e n t Troy, The Detroit locationtowill have a and less other according to a news release. UBS nonprofits organizations, Farmington recorded operating income of $2.13 flect the city’s road system. really felt like we wanted to have a physAmericas also Hills, The plans to startManagement its buildtraditional, more “urban” Wealth Americas em- quarter of 2017 — a Bushfeel said.than The the space will becompany called Plymouth in the third “Some of theUBS organizations that op- billion ical presence downtown reinforce has tometro De- others, he said. New York-based out process early next year, depending architec225 of whom Woodward Its design and art ploys 280 in Michigan, John Gallery. 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.
Detroit business community. Contact: Debora Stein at dstein@crain.com
No lid on growth? “A mall without a roof.” Time and time again, that’s a phrase that retail and planning experts use to describe The Mall at Partridge Creek in Clinton Township, on the ever-busy M-59/Hall Road corridor that has some of the densest shopping in Southeast Michigan. Bookended by a pair of department stores, Nordstrom and what at the time was Parisian, the 600,000 square-foot-plus mall has lost both in the retail reckoning, the former in 2019 and the latter in 2018 after it was renamed Carson’s. “The demise of shopping centers ultimately have been the closure of department stores that have led to lower foot traffic for all the in-line retailers,” said Luke Bonner, senior economic development adviser for Sterling Heights and CEO of Ann Arbor-based economic incentive, real estate and economic development consulting company Bonner Advisory Group LLC. “You have dead-ends at the mall,” Bonner said. Those stores, called “in-line” retailers in the business, count on department store shoppers to provide them foot traffic. “They bring 35 to 40 percent of all shoppers,” Gibbs said. When department stores go dark, the symbiotic relationship is interrupted.
New blood in Rochester Hills
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
`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. ` Explain workforce housing versus affordable housing. We’re not in luxury housing. Our residents are working. They’re going to wake up tomorrow morning and go to work. Our average rents are, for example, in Washtenaw County, about $1,100 to $1,200 or in Orange County, or Seminole County, Florida, $1,400 or $1,500. So these are affordable rents. And the difference between us and affordable housing is our buildings are not subsidized. They’re all market rate, and they’re all privately owned. The owners are not receiving any form of subsidy, nor are the residents. However, if you wanted to sort of assess residents and low-income housing tax credit deals compared to ours, they’re probably not too dissimilar, the median incomes. The McKinley residents in, let’s say, Washtenaw County, when you look at the numbers are probably not going to be too much different than what you would see in a traditional LIHTC deal. But again, our buildings, the primary differences, our buildings are market rate and they’re not subsidized any way.
`I don’t think it’s overblown to use the word “crisis” for Ann Arbor’s affordable housing situation. Give us your perspective on how the city should go about addressing it. I think it’s a supply issue. The reality is that Ann Arbor has not really welcomed solutions from the private sector and has only sought solutions from the public housing side or the community nonprofit side. And both of those groups, while I think they’re very well intentioned, don’t have the capital and the expertise to resolve the problem at the scale it’s needed. To put it in perspective, you know, the Washtenaw County study that came out had a need of about 3,000 units. And if you look at the cost per unit today, and let’s say $250,000 or $300,000 per unit to build a brand new unit today, you know, it’s an $800 million to a $1 billion problem, so I don’t think that’s a problem that gets resolved on the public side or on the community nonprofit side. You know, they have to go to places to seek capital and there just isn’t enough capital, nor do they have enough resources or expertise to resolve the problems. So the city I think, by and large, has attempted to do this in those ways because they really haven’t welcomed the private side. And there is a lot of expertise and there’s a lot of capital that could do this, from the private side perspective. It just hasn’t been the way that Ann Arbor operates, so you see what has happened in Ann Arbor year over year, decade over decade is there’s a lot of conversations about affordable housing, but there’s no solutions. `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.
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On paper, Partridge Creek should be outperforming the Village of Rochester Hills, says Robert Gibbs, an urban planner who worked on the latter’s master plan. There are more than 200,000 people within four miles of the Partridge Creek site, compared with 95,000 for the Village of Rochester Hills, located at Adams Road and Walton Boulevard. Vehicular traffic at the former exceeds the latter. Household incomes are comparable, with the average household income around Partridge Creek being $100,000, compared with $120,000 for the Village of Rochester Hills. And although Partridge Creek is densely surrounded by potential shoppers, the Village of Rochester Hills has substantial rural areas to the north, northwest and northeast, said Gibbs, who is principal of Birmingham-based Gibbs Planning Group. In addition, Partridge Creek’s location just two miles from Lakeside Mall should have worked in its favor as open-air lifestyle centers tend to pull shoppers from nearby indoor regional malls, Gibbs said. A stronger nearby office market also should have worked in Partridge Creek’s favor, providing daytime lunch traffic to restaurants.
Albert Berriz talks workforce housing, Ann Arbor and Cuba
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.
Laura Picariello
their companies to the 42 | CRAIN’S and DETROIT BUSINESS | MAY 24, 2021
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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
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Deneweth, Dugan & Parfitt, P.C. is pleased to announce the hiring of Jacob Kahn and Alex Choi as associate attorneys with the Kahn Firm. Mr. Kahn is a 2017 graduate of the University of Detroit Mercy School of Law and has gained valuable experience as counsel with prior law Choi firms in their litigation departments. Mr. Choi is a 2020 graduate of the University of Detroit Mercy School of Law and recently passed the bar exam. The Firm is very pleased and excited to welcome them. Deneweth, Dugan & Parfitt, P.C. is a law firm that specializes in construction law transactions and litigation. NEW HIRE?
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From Page 3
The Village of Rochester Hills, however, has been able to lure new tenants for a host of reasons. First, the Whole Foods Market serves as a regular draw for customers to other businesses in the center, Gibbs said. Unlike department stores, for example, grocers tend to bring in customers with greater frequency. Although the Nino Salvaggio’s market at Partridge Creek draws shoppers, it’s on an outlot and not
The Mall at Partridge Creek lost Nordstrom, which was one of its bookend stores bringing traffic to the rest of the mall | CRAIN’S DETROIT BUSINESS
within the shopping center itself like the Whole Foods is at Village of Rochester. “Partridge Creek is nice, don’t get me wrong,” said Randy Thomas, head of Commerce Township-based Insite Commercial, which is working on the Five & Main open-air shopping center in Commerce, which has been in the works in some fashion for more than two decades. “But they designed it around these big boxes, and what happens when there is no one there to occupy them? Or when the next tenant to occupy them is not a real complement to the center,” Thomas said. In addition, a more convenient parking setup allows customers to drive up to the storefronts, unlike Partridge Creek, where parking is situated along the outside, more like a traditional indoor mall. Bruce Aikens, vice chairman for developer and owner Robert B. Aikens & Associates LLC, said the 375,000-square-foot Village of Rochester Hills is about 95 percent occupied. Aikens is also the developer of Five & Main, which has seen some of the residential development by Farmington Hills-based Hunter Pasteur Homes and Atlanta-based PulteGroup Inc. materialize the last several years. The Village of Rochester Hills was formerly the Meadowbrook Village Mall but was redeveloped and opened in 2002 in a $90 million project. Like Partridge Creek, it also lost its Carson’s store but it was replaced by the Von Maur, which is expected to open next year.
For example, the Fountain Walk development in Novi, which cost $115 million to build on 74 acres with more than 700,000 square feet, went bankrupt just two years after it opened, with many of the retail spaces still in white-box condition. But today, under its new ownership and now named Twelve Mile Crossing at Fountain Walk, the property is more than 90 percent occupied, said Michael Zimmerman, who owns the property with his Green Earth Realty LLC. He inherited it from his late father-in-law. It counts Emagine Entertainment Inc. as a key tenant along with Floor & Decor, Powerhouse Gym and Dick’s Sporting Goods. Lucky’s, a restaurant and billiards club, closed its roughly 60,000 square feet and Zimmerman said he is close to signing The Hub, which has a location in Auburn Hills, to occupy the former Lucky’s space.
Face of uncertainty
Challenges faced
Partridge Creek’s future likely won’t be known until its debt debacle is unraveled and its revenue decline can be reversed. “Discussions with Borr (borrower) have not resulted in an acceptable resolution strategy, therefore SS (special servicer) has entered into discussions with a receiver and plans to move forward with legal proceedings in each jurisdiction to have the receiver appointed at each property,” loan commentary for Partridge Creek reads. “Borrower has been cooperating with the transition.” Between Jan. 1, 2018, and Dec. 31, 2018, the mall brought in $20.38 million. A year later, between Jan. 1, 2019 and Dec. 31, 2019, it brought in $17.68 million. The most recent oneyear period available, Oct. 1, 2019 to Sept. 30, 2020, revenue was $14.63 million. Net operating income for the mall during those three periods fell from $11.13 million to $6.71 million, according to Trepp. But still, the mall will still have broader market forces to deal with, such as the rise of online shopping and the decline of department stores. “The whole retail experience — whether we like it or not — has been forced upon us and will be different,” Thomas said. “Shopping centers in the past, the developer would go in and give anchor stores the land, somewhat subsidize them and they filled in everything in between. You can’t do that today. Retail is thought differently. We’ll see some expand, some contract, new ones will come and others will go away, and I don’t think we’ll know where retail is going to settle for the next year or year and a half.”
Other outdoor shopping centers have faced difficult times in the past.
Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB
Not just the endcaps The department store closures in Partridge Creek don’t tell the entire story. A source familiar with the matter described them as having helped lure popular retailers like Apple to Partridge Creek, a key source of foot traffic. In addition, there were opportunities to quickly retenant the closing Carson’s and Nordstrom’s stores, but the debt load “froze” Starwood Capital Partners, the source said, and deals never materialized. Data from Trepp LLC, a New York City firm that tracks commercial mortgage-backed securities loans like those that Starwood Capital Group took out, shows that the four malls securitized by the $725 million loan were appraised at the end of March 2020 at $366.7 million, a little more than half the original loan balance, which now sits at $681.6 million.
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WATERFRONT
From Page 3
It requires property owners to register their barriers along the water for preventative maintenance. It also establishes inspections by the city every two years and requires owners to pay for geotechnical and seawall stability reports every five years. Registration fees aren’t set in the ordinance itself, and would need to be approved by City Council. Fines would include $250-$1,000 for failing to register. Property owners would also need to pay costs for cleaning up emergency contaminated spills. It would also fill a gap in emergency response regulations laid bare by the Revere Dock spill, requiring owners or operators to tell the city if they have reason to believe their barrier has been breached.
‘Confusing’ legislation? Parker and others argued May 17 that they agree the riverfront must be protected, but want to be involved in the conversation and see if a compromise can be found. Parker told Crain’s that the legislation is “confusing,” its language doesn’t match the state’s and that it entails a large increase in inspections and work for property owners. He said those drafting the ordinance should have involved businesses more. “Our ask, simply, is just to allow us all to sit down, come together and create a great ordinance for everyone,” Parker said. “...We’re not denying that enforcement is needed, we’re just saying your ordinance ... is confusing and maybe we can help kind of strengthen it, maybe take some stuff out.” The Detroit Regional Chamber declined to tell Crain’s the names of any members who have concerns. Parker also argues the city could make improvements by beefing up riverfront blight and safety enforcement already occurring through the Buildings, Safety Engineering and Environmental Department. However, as Crain’s reporting has borne out, no governmental entity was responsible for ongoing maintenance and inspection of seawalls and other waterfront structures in Detroit before the Revere Dock collapse. Nathan Keup, vice president of development for Ginosko, said in the committee meeting that he’s worried the costs embedded in the current language would hurt future and existing affordable housing. Ginosko was awarded low-income housing tax credits by the state in 2019 for a more than $27 million apartment development on vacant east-side riverfront land at 7850 E.
Jefferson Ave. “We are just concerned the ordinance would place economic hardship on affordable housing providers,” Keup said. “We recently had a study done of the seawall we own and maintain on the property, it cost us around $20,000 ... and the thought of doing that every five years would be extremely onerous, especially for people providing low- and moderate-income-targeted housing along the rivers.” As written, the ordinance applies to all property except land zoned for single-family and two-family dwellings: R1 and R2, per Detroit’s zoning rules. But Castañeda-López said more exemptions could be made. “There are some residential areas zoned R6 (for high-density residential) and SD (for special developments), which might be the zones some of the people giving public comment were concerned about,” Castañeda-López said in a text message. “We are looking into the zones and seeing what changes can be made to support the senior and affordable housing units zoned above R2.” Both parties confirmed as of Wednesday that a member of Castañeda-López’s staff was set to meet with the Detroit Regional Chamber on Thursday. The council member said she’s happy to sit down with those who find the ordinance problematic, but wants to hear specific ideas more than “blanket concerns.” Justin Onwenu, a Sierra Club environmental justice organizer in Detroit, called the proposal “pretty common sense” and “consensus-driven” after input from the city administration. Keeping the river healthy is necessary for economic growth, he said.
Revere Dock spill The ordinance comes in the wake of the November 2019 Revere Dock collapse near Historic Fort Wayne in southwest Detroit. Limestone construction aggregate material being stored illegally by Detroit Bulk Storage Inc. was dumped into the river. Detroit Bulk Storage settled with the city in November 2020 and the state ordered $60,000 in fines from site owner Revere Dock LLC. Environmental activists have called out the city and state for a delayed response to the spill. They also caution this isn’t the last time a collapse like this will happen in Detroit. The city itself found concerning seawall conditions in an early 2020 inspection of all 152 properties along the Detroit River, and lakeshore erosion has been on the rise. Contact: afrank@crain.com; (313) 446-0416; @annalise_frank
A 2019 incident in which a riverfront property where Detroit Bulk Storage Inc. was illegally storing limestone collapsed into the river prompted environmental advocates and Detroit City Council member Raquel Castañeda-López to draft an ordinance tightening regulations for property owners along the waterway. | ANNALISE FRANK/CRAIN’S DETROIT BUSINESS
44 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
RETURN
From Page 1
have attributed losses of nearly $135 million in fiscal year 2020 — which ended last June — stemming from suburban residents working from home, as opposed to commuting into the city and paying a 1.2 percent income tax. The city also expects smaller losses to continue through fiscal year 2025 as workplace dynamics shift long term.
Out of the basement While likely to be slow going for the time being, it’s clear that much of the corporate world is ready to make a gradual ramp-up in its return to the office. Doing so is allowed starting Monday under state rules, whereas since March 2020 it was required that any office work that could be done remotely be done so. Still, as of late last week there were unknowns for companies looking to bring workers back, given that the Michigan Occupational Safety and Health Administration had not yet issued specific regulations for employers. But the agency, part of the administration of Gov. Gretchen Whitmer, said it was attempting to be flexible with those looking to get workers back to the office quickly. “MIOSHA is in the process of reviewing the emergency rules and draft permanent rules and will soon post updates that reflect the CDC’s recent guidance,” Sean Egan, the state’s COVID-19 workplace safety director, said in a statement. “Until then, MIOSHA will consider compliance with the recent MDHHS order as good faith to comply when responding to employee complaints or conducting investigations related to COVID-19.” A deal reached late last week between the Democratic governor and Republican legislative leaders to work together on spending billions of dollars in federal stimulus aid was tied to MIOSHA dropping its pursuit of permanent COVID workplace safety rules. “The agency has the flexibility it needs to ensure consistency with public health guidelines and will continue to protect Michigan workers as we work toward ending this pandemic,” Egan said. To that end, many of the region’s financial companies say they’re ready. Rocket Companies Inc., Detroit’s largest employer, plans to bring its 19,000 workers from a host of financial service subsidiaries back to its downtown offices on June 7 using a “hybrid” model that will have workers in offices on different days. Auto lender Ally Financial Inc., meanwhile, plans to have “the majority” of its approximately 1,500 Detroit employees back working in downtown’s Ally Detroit Center by the beginning of July, and “flexibility will be a priority,” according to company spokeswoman Caitlin Palumbo. Since March, the financial company has been having a small number of employees in its offices across the country participate in pilot programs. One such program will begin in Detroit now that office work is allowed, Palumbo wrote in an email to Crain’s. “Our phased re-entry approach will allow us to validate all safety protocols are working effectively and monitor capacity on each floor in order to maintain distancing requirements,” Palumbo said, noting that Ally is “encouraging” all its employees to get vaccinated and offering paid time off to do so.
Workers may soon be returning to downtown Detroit office buildings. | NICK MANES/CRAIN’S DETROIT BUSINESS
While based in suburban Oakland County, executives at United Wholesale Mortgage Corp. say the company’s campus-like headquarters in Pontiac will be full again later this summer. “We’re going to bring everyone back in the right way, over the right time frame,” UWM President and CEO Mat Ishbia told Crain’s earlier this month. “I’ll say by the end of July, we’ll have, by then, over 9,000 team members here.’ Two other large downtown office employers, DTE Energy and Blue Cross Blue Shield of Michigan said they have no firm dates for when employees might be back in person, based on statements from spokespeople for the organizations.
Plotting a return Meanwhile, General Motors Co. is on track to have employees begin returning to its Renaissance Center headquarters by the end of June, GM spokesman David Caldwell said. However, the automaker’s CEO Mary Barra has announced what she’s calling the “work appropriately” model, offering office workers more flexibility than before the pandemic. Downtown Detroit’s corporate law firms are also eyeing their return to the city’s high-rise office buildings. “Starting on June 1, we will work under a 50 percent occupancy cap,” Megan Norris, CEO of Detroit-based Miller Canfield PLC, said in an email. “Other than the essential workers who have been in the office throughout the pandemic, no one will be required to return until we are fully open.” Norris said the law firm will follow the guidance brought by the Whitmer administration, which effectively clears the way for all pandemic-related restrictions to be lifted by July 1. The Bodman PLC law firm, with its Detroit offices housed inside Ford Field, will allow for “anyone who wants to return to the office to do so as of May 24,” according to a statement. “We are working on our remote work policy, and we expect to allow people to continue to work in some remote capacity going forward,” according to its statement. Butzel Long said it will also allow office work beginning May 24, with conference centers open for meetings and depositions. “Time in the office is expected across all levels and departments, but varies based on need,” the firm said in a statement. “A hybrid model with at least 3 days per week in the office for Staff is expected beginning June 7th. Attorneys and Paralegals will have no specific requirement for in-person attendance but are expected to be on site regularly as part of their obligation to the Firm and their colleagues.” The Honigman LLP law firm, Michigan’s largest firm headquartered in
downtown Detroit’s First National Building, said its plan for returning to the office was still being worked out and had no specifics to offer. The region’s governmental bodies could also soon bring some office workers back from remote working. Wayne County had not set a returnto-the-office plan for its 368 employees at the Guardian Building downtown, according to a memo sent to county employees May 17. “The county is evaluating the current Remote Work Policy and will consider multiple factors including the Community and county employee vaccination rates, the availability of child care, and the nature of work along with other factors when determining when employees will be required to resume in-person work,” the memo said. Wayne County employees will still be required to wear masks while at work — regardless of their vaccination status — because of MIOSHA rules requiring them, the memo said. At Cadillac Place in New Center, state of Michigan employees are expected to begin returning to the state office building on July 12, said Caleb Buhs, spokesman for the Michigan Department of Technology, Management and Budget. As of April 2020, there were 1,785 state employees assigned to Cadillac Place, Buhs said. “As we get closer to the July 12 date, there may need to be adjustments made to the safety protocols within the facilities based on the latest recommendations” from the state and federal agencies, Buhs said in an email to Crain’s.
Ramping up Prior to the pandemic, downtown Detroit had about 76,000 employees on any given day, according to U.S. Census data compiled by the Downtown Detroit Partnership. It’s unclear when, or if, the city core will see that level of activity again, but Larson with the Partnership said he expects a gradual ramp-up over the coming months. “My hope is what will transpire is most of those employees will find a reason to be in the city and re-engage, even if it isn’t on a daily basis,” Larson said. “In real numbers, it will probably start out at something like 25 to 30 percent of the employee population and then hopefully grow as ... individuals get more comfortable with operating at full levels.” — Crain’s Senior Editor Chad Livengood and reporters Jay Greene, Dustin Walsh and Annalise Frank contributed to this report. Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes
FOOD AND DRINK
Downtown Detroit restaurants hopeful office workers' return will save them from the pandemic abyss Rocket’s announcement was the news restaurateurs have been waiting for BY JAY DAVIS
Firebird Tavern co-owners Owen Burke and Tony Piraino see the return of thousands of Rocket Companies Inc. employees to its downtown Detroit offices as a barometer for how the 8-year-old establishment moves forward. Rocket on Tuesday announced it would start bringing back its 19,000 employees to the city’s central business district on June 7 — 15 months since the state ordered work that could be done remotely be done so during the COVID pandemic. Other large employers were making similar plans after Gov. Gretchen Whitmer said office work can resume May 24. “We’re fortunate to do a tremendous amount of business with (Rocket employees) coming in day to day, and we also do a tremendous amount of events with them,” Piraino said. “This is going to play a role in how our hours change and if we open more days. Quicken (Loans) is a big catalyst for us. It’s the return of people downtown. With offices being closed, nobody at games, no concerts, there’s nobody downtown.” Firebird Tavern's revenue dipped 85 percent since the start of the coronavirus pandemic, he said.
Changes that stick Firebird Tavern at 419 Monroe St. in the city's Greektown area has operated limited hours since reopening in early February. The business, which opened in 2013, developed an app that launched in September 2020 that allows customers to place pickup orders. Burke said the app was in the works in late 2019, as research found more Quicken Loans staffers opted to eat lunch at their desks. “(The app) slowly caught on,” Burke said. “We think we’ll get more use out of it as people return.”
Firebird Tavern did a huge amount of business with employees of Rocket Companies, and is hopeful they will return. FIREBIRD TAVERN
“I hope more companies start phasing staff back. If you’re a public-facing business, people are important to what you do,” said Southern, whose revenues have taken a 25 percent dip over the last 15 months. “Things are changing day by day. Customer sentiment changes, too. We reopened mid-February and business was great. Then (Gov. Gretchen) Whitmer goes on TV and says not to eat inside at restaurants. It’s certainly better to be open than closed, but things change.” Burke and Pi“WE’RE LOOKING FORWARD TO THE DAY WE raino say they’ll be ready to roll CAN BRING EVERYBODY IN.” when Rocket — Tony Piraino, Firebird Tavern and other companies return downtown. Central Kitchen + Bar on the They’re looking to get a big boost, too, ground floor of the First National as stadiums and entertainment venBuilding in downtown Detroit, has al- ues are able to fill up again starting ways seen a good amount of business June 1. The Firebird Tavern owners hope coming from the Rocket-affiliated buildings, according to co-owner to expand their hours, which are 3-11 Dennis Archer Jr. Its 2020 revenue de- p.m. Thursday through Saturday. cline was “significant,” as Rocket and They’ll need additional staff before other large corporate employers sent any hours are added, as the restaurant has dropped from 32 employees their workers home, he said. While acknowledging that limited pre-pandemic to 11, including the capacity and a reduced staff contin- two co-owners. Burke said they hope ues to create struggles, Archer Jr. said to add 10-15 more staffers, including cooks and servers. he’s anticipating good times ahead. “School will be back in session, “I’m very bullish on the summer, and the balance of the year,” he said. employees can send their kids to day“If you look at the Spanish Flu (in care, work a lunch shift and then pick 1918), coming out of that, we entered them up. That extra $300 a week in into the Roaring 20s. I think (you’ll) unemployment (benefits) will go see that same level of pent-up con- away eventually, too,” Burke said. “We sumer demand, both in hospitality, think there’ll be a lot more normalcy starting this fall.” retail and also travel.” Detroit Vineyards’ Southern said Detroit Vineyards General Manager and winemaker Christopher he’s going to take a wait-and-see apSouthern called the move back to of- proach. His workforce has dwindled from 14 to four over the last year. The fices an important first step.
business introduced virtual tasting events to stay afloat, Southern said, as he and one other staffer delivered packages to customers. At one point, Southern said he was the vineyard’s lone staffer. “I make slow moves these days. We’ll see how it goes,” he said. “We’ll expand if needed. I feel like we did a lot of mid-week business with Quicken Loans pre-pandemic. We’ll see if that comes back. If that’s the case, it makes sense to expand.” Firebird Tavern is expanding in another way. It got approval from the city to add 12-15 seats on Monroe. Firebird Tavern’s indoor capacity is 250 patrons. “That was never even an opportunity before the pandemic,” Burke said. “No way (the city) would allow anybody to go into Monroe. We’ll build some decking and put some planters out. It’ll be highly visible and good for marketing.” Southern is still working at about 30 percent capacity in Detroit Vineyards’ 12,000-square-foot space. On May 16, it hosted a spring bottling pickup party for its wine club members, with 84 attending two socially-distanced events. Piraino believes the current 50 percent capacity limit and 11 p.m. curfew has been a hindrance for his and other businesses. When the move was made to increase from 25 percent to 50 percent, Firebird Tavern gained nine additional seats. “We’re looking forward to the day we can bring everybody in,” Piraino said. — Crain's reporter Nick Manes contributed to this report. Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981
Dennis Archer Jr. co-owner of Central Kitchen + Bar, is bullish on the summer.
Owen Burke says the Firebird Tavern’s app caught on during the pandemic. MAY 24, 2021 | CRAIN’S DETROIT BUSINESS | 45
THE CONVERSATION
Lynnette Boyle on growing in a male-dominated industry BEANSTALK REAL ESTATE SOLUTIONS: Lynnette Boyle was exposed to commercial real estate early in life when her mother, in the 1970s, worked for someone who owned apartment buildings around Wayne State University, where she later went to school. After a career that included time with Kirco, Farbman Group, Sterling Group and Bedrock LLC, she formed Detroit-based Beanstalk Real Estate Solutions in 2016, focusing on property management and brokerage. In a commercial real estate landscape dominated by men, Boyle’s firm has landed management contracts for high-profile downtown office buildings like 211 W. Fort St., the Buhl Building and the Guardian Building. Until COVID-19 hit, her company’s revenue doubled every year. | BY KIRK PINHO ` What led you into commercial real estate? I kind of got introduced to that real estate crowd early on as a kid ... I ended up going to Wayne State and ended up taking a job working for Kirco Management in what is now the Chrysler House as a receptionist. I was going into advertising and marketing. But I loved the office building environment because it touched everything. What I love about commercial real estate, and especially property management, is it’s very interdisciplinary. You deal with architects, engineers, you deal with the sociology of placemaking and what the place feels like. You deal with environmental issues, you deal with designers, you deal with lawyers to do the leases and you deal with accountants to do all the financial aspects of the deal. So for someone who doesn’t know what they want to do with their life, real estate offers a broad spectrum ... I kind of was one of the few women in the business. I was 22 and I loved it and I think I had the capacity to learn and adapt to it. A lot of these guys took me under their wing. Kirco called me back to manage a building and in the early 1990s, there were no women managing property. There were very few women in the business. It was all white men. So I just learned to play the game very early and not be, I don’t know how to say it, but not be too tomboy-ish but not be too girly. It was a fine line to kind of walk to adapt to a man’s world, and I think these guys appreciated that I was willing to let them take me under their wing.
“I KIND OF WAS ONE OF THE FEW WOMEN IN THE BUSINESS. I WAS 22 AND I LOVED IT AND I THINK I HAD THE CAPACITY TO LEARN AND ADAPT TO IT.” — Lynette Boyle, Beanstalk Real Estate Solutions
` Has that changed over the years? It has changed a lot, except that now that I have my own business, it’s come back. Think about it. Most of the developers are men. You see very few women developers. Now that I have my own company, and I’m going after contracts from big developers, I’m competing against Friedman (Real Estate), Farbman (Group), JLL, CBRE, Signature (Associates). If you think about it, who owns those companies? White men. If you go to their websites, there’ll be a few women. ` Let’s talk about your time with Dan Gilbert’s company. It was the most amazing experience I ever had. I worked a million hours a week. We moved mountains to make things happen. That team was so, so cool. You’re tasked with making things happen overnight, and that’s what Dan Gilbert knew had to happen. He said, “You have to have residential, commercial and retail happen all at one time, buy up as much as we can to change the dynamic of downtown
and we are going to work really hard but I’m going to pay you really well, and when you’re done, you’re done.” It has a shelf life. Some people hated the group of Bedrock people and some people loved it. ` And then you started Beanstalk? I thought, “What am I gonna do?” One of my old bosses called me and said, “Start your own company. I’ll help you.” So we started Beanstalk and immediately got the Buhl Building, we got the Guardian Building, we got 211 West Fort Street. Those are three major buildings that put us on the map and helped us have a resume, as a small company, and gave us credibility. We started at the beginning of 2016 and our revenue doubled every year until COVID hit. When COVID hit, 211 (West Fort) sold and we just kind of went stagnant. We didn’t lose revenue, but we didn’t grow, but we had enough book of business to stay afloat and keep our team and have very few layoffs. Lynnette Boyle, Beanstalk Real Estate Solutions
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46 | CRAIN’S DETROIT BUSINESS | MAY 24, 2021
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Going to Mackinac conference? Better get your shot(s) All attendees of the Mackinac Policy Conference must be vaccinated, according to guidance issued Thursday by organizers Detroit Regional Chamber. The conference to be held at the Grand Hotel on Mackinac Island September 20-23 will also be limited to 1,300 attendees, a reduction of one-third from past iterations of the event. The chamber is requiring all attendees to have received two doses of the Moderna or Pfizer vaccine or a single dose of the Johnson & Johnson vaccine at least two weeks prior to attending the conference. The vaccine requirement will also be in effect for all on-site vendors and chamber staff, the organizers said in a press release. The staff of the Grand Hotel is currently all vaccinated, the chamber said. The chamber said it is exploring a
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The Grand Hotel will host the Mackinac Policy Conference again in September and is requiring attendees to be vaccinated against COVID-19. | CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS
third-party technology contractor to assist in verifying attendees’ vaccination status. “The Chamber takes its responsibility hosting Michigan’s top leadership seriously,” Sandy Baruah, president and CEO of the Detroit Regional Chamber, said in a release. “The Mackinac Policy Conference will be among the first large high-profile events to occur as restrictions ease, and the chamber as a business organization has the responsibility to handle the event properly.” The chamber is also urging attendees to bring a mask. Though wearing a mask will not required at the event, it is currently required on the ferry ride to the island. The guidance issued Thursday is subject to change as public health conditions change, the chamber noted in the release.
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Chairman Keith E. Crain Vice Chairman Mary Kay Crain CEO KC Crain Senior Executive Vice President Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except no issues on 1/4/21 nor 12/27/21, combined issues on 5/24/21 and 5/31/21, 8/30/21 and 9/6/21, 11/15/21 and 11/22/21, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A. Contents copyright 2021 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.
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in automation, and the Michigan Economic Development Corporation has the resources and services to help your manufacturing business prepare for the future. Find out how you can make business moves at michiganbusiness.org/Industry4-0
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Manufacturing is moving fast. And your business can keep up.
Industry 4.0 is the next phase
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