Crain's Detroit Business, June 27, 2022, issue by Crain's Detroit Business

CONVERSATION: Chase Cantrell on self-determination in development. PAGE 22

AVALON AT 25 Pioneering bakery mixes up next steps PAGE 16

CRAINSDETROIT.COM I JUNE 27, 2022

State preps for influx of abortion patients

FORUM I CLIMATE MIGRANTS

Supreme Court decision could have major impact in Michigan BY DUSTIN WALSH

PORT IN A

As droughts, floods and wildfires elsewhere force people to relocate, the Great Lakes region could get a wave of migrants. I PAGE 9

CORNELIA LI

STORM?

Michigan health systems and reproductive care clinics are preparing for an influx of patients from neighboring states following the overturning of Roe v. Wade by the U.S. Supreme Court. The case, Dobbs v. Jackson Women’s Health Organization, challenged a 2018 Mississippi law that bans most abortions after 15 weeks into pregnancy. That case was used to challenge the nearly 50-year-old Roe v. Wade decision, which has allowed abortions up to a certain point across the U.S. until Friday’s ruling. For now, abortion care is legal in Michigan after a judge placed an injunction on the state’s long-dormant, near-total abortion ban enacted in 1931. But that’s not the case for Michigan’s neighbors. Abortions are legal in Ohio until 20 weeks of pregnancy but the state’s attorney general is seeking to reinstate a 2019 law banning abortion once a fetal heartbeat is detected, which is about six weeks. See ABORTION on Page 20

Tony the Tiger and Mr. Pringle just have different needs Kellogg split reflects big changes in how we eat BY KURT NAGL

Tony The Tiger and Mr. Pringle are holding each other back. That’s the short explanation of why Battle Creek-based Kellogg Co. decided to spin off its legacy cereal business from its high-growth snack foods division, as explained by CEO

Steve Cahillane on a call with investors Tuesday after the company’s announcement reverberated throughout the industry and the state. “Cereal will be solely dedicated to winning in cereal … and will not have to compete for resources against a high growth snacking business,” Cahillane said. “So, Frosted Flakes does

NEWSPAPER

not have to compete with Pringles for resources. An economist might say, well, you can do that without splitting up the companies, but we don’t live in a textbook.” The move to split Kellogg into three new

companies — and establish a headquarters for the largest one in Chicago — is a play to meet consumer demands and attract talent, said Bob Samples, executive-in-residence at Western Michigan University and faculty member specializing in food and consumer package goods marketing.

“Chicago is historically one of the biggest food cities in the United States, and you still have all of the marketing and experts that are there,” said Samples, who worked in leadership roles at Hormel Foods for three decades. “I think they also have an opportunity to draw employees to Chicago a lot easier than Battle Creek.”

MUSIC HALL

CRAIN’S LIST

Plan in the works that could bring a new music venue to downtown Detroit. PAGE 3

See the largest physician organizations in Southeast Michigan. PAGE 8

See KELLOGG on Page 19

TE CAMPUS

NEED TO KNOW

RETAIL

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT  NEARLY 200 NEW DEEPLY AFFORDABLE APARTMENTS PLANNED FOR DETROIT THE NEWS: Four new housing projects in Detroit will create nearly 200 new units for residents who are at risk of homelessness or otherwise have trouble affording rent, the city announced. All of the 183 units will be affordable to residents earning 60 percent of the area median income — or $42,960 for a family of two — though many are earmarked for residents with even deeper affordability needs. The projects will also include 20 market-rate apartments. The units will be built in the Old Redford, Midtown, Woodbridge and MorningSide neighborhoods. WHY IT MATTERS: The project will also see the launch of a new rental subsidy reserve, which will help cover the cost of rent for residents at seven units who cannot afford to pay the full cost.

 LYON TOWNSHIP GOLF CLUB EYED FOR HOUSES, TOWNHOMES THE NEWS: The Coyote Golf Club in Lyon Township may be turned into new townhomes and single-family residences. The 200-acre property at 28700 Milford Road at the northeast corner of 12 Mile Road is under contract to be sold to Birmingham-based SE Metro Property Ser-

vices LLC, according to documents submitted to the township Planning Commission. It would be converted into 107 townhomes valued at $400,000 and 203 single-family residences valued at $600,000 in a three-phase development starting in the summer 2024.

that seeks to build highways in the sky for unmanned aircraft is on another high-flying path. Airspace Link Inc. announced Wednesday that the company closed on a Series B funding round totaling $23.1 million at a valuation of about $200 million, according to a Crain's estimate.

WHY IT MATTERS: Michigan, long considered a golf mecca, has seen its supply of courses shrink. This redevelopment would be the latest closure.

WHY IT MATTERS: The added money in the bank allows the company to continue growing its head count, which has swelled from 17 one year ago to 45 today, with another doubling expected in the coming months.

 SARTORIUS TO OPEN CENTER OF EXCELLENCE, ADD JOBS IN ANN ARBOR THE NEWS: Sartorius, an international group that develops products for life science research and the biopharmaceutical industry, is breaking ground on a new Center of Excellence in Ann Arbor. The building will be located at 3874 Research Park Drive in the Tech Loop at the Ann Arbor Research Park. WHY IT MATTERS: The space will be used for laboratory research, focusing on providing solutions to customers, and developing drugs.

 DETROIT DRONE COMPANY NETS $23 FROM VC INVESTORS THE NEWS: Just one year after closing a $10 million funding round, a Detroit-based drone software company

 EXTENSIVE DAMAGE TO HOLLY HOTEL, OTHER BUSINESSES AFTER FIRE THE NEWS: Two businesses were destroyed and others were damaged during a large fire that erupted in downtown Holly late Tuesday afternoon. Village Council President Thomas McKenney the Battle Alley Arcade Antiques Mall and Andy's Place bar were destroyed. The Creative Fashions of Holly women's clothing store and the historic Holly Hotel restaurant and venue were damaged. WHY IT MATTERS: This is the fourth recent fire at a significant metro Detroit property in less than four weeks, following blazes at Traffic Jam & Snug in Detroit, The Capital Grille at Troy's Somerset Collection, and the Woodward Bar & Grill in Detroit.

First Allbirds store in Michigan to open at Somerset Allbirds Inc., a sustainable footwear and apparel brand, is poised to open its first store in Michigan. "We are thrilled to open our first store in Michigan at the Somerset Collection this Fall," Talia Loewenstein, global real estate director for Allbirds, said in an emailed statement. "We look forward to building community through events with our Allgood Collective at our store and continuing our pursuit of making better things in a better way." Berkeley, Calif.-based Goring & Straja Architects submitted a permit for the space on behalf of the company on June 6. According to the documents, the store is to be located in 3,456 square feet on the ground floor of the three-story mall on the north side of Big Beaver Road in Troy. Goring & Straja Architects and New York-based HNY Consulting Engineers make up the design team. Allbirds, founded in 2016 by New Zealander Tim Brown, was an exclusively online retailer until opening a physical location in San Francisco in 2017. Since then, Allbirds has opened 39 locations — 27 stores in the U.S. and 12 globally — and has approximately 471 employees in those stores, averaging about 12 employees in each.

Allbirds plans to open a store at Somerset Collection in Troy in the fall. | ALLBIRDS

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Baseball league pushes to grow Purchase of English soccer club also eyed BY KURT NAGL

Felisha Paholsky of Rochester makes a pourover coffee at Chazzano Coffee Roasters in Ferndale. | NIC ANTAYA/ CRAIN’S DETROIT BUSINESS

BREWING CHANGES Cantor-turned-coffee roaster expands his business in Berkley New York-born Frank Lanzkron-Tamarazo used to think he was destined for a life in the synagogue. In fact, he spent two decades serving at various congregations across the Midwest, eventually ending up in Farmington Hills. “I was cantor and I'd come home at 10:30 at night and roast coffee and until one o'clock in the morning grinding, brewing, tasting and taking meticulous notes," he said. "And I did that for about 10 years.” What now pays the bills — and what locals have bought in his Ferndale store and ordered from him for the last 13 years — originated as a hobby in his garage with a small roaster he got as a gift from his mother-in-law. It wasn't until he was serving as a cantor in Wilmette, Illinois that he realized he could make a career out of his obsession. “A friend of mine…came up to me after Rosh Hashanah services and said, ‘Frank, you have a great voice,

| BY ANNA FIFELSKI

you're a great cantor, but I can't imagine you as an old cantor—I can imagine you as an old coffee roaster,” Lanzkron-Tamarazo said. "Life is short. And I've never found coffee that's better than mine.” Lanzkron-Tamarazo has owned and operated Chazzano Coffee Roasters since 2008, offering up a worldwide variety of beans and brews for those who take their cup seriously. Now the business is poised for a major expansion, leaving its leased Nine Mile Road location for a permanent spot in Berkley. The move won't happen for another six-to-nine months and will require a major investment. Lanzkron-Tamarazo bought the building at 12 Mile Road for $325,000 and says he expects to put another $150,000 into it before it will be ready to open. See CHAZZANO on Page 21

“LIFE IS SHORT. AND I’VE NEVER FOUND COFFEE THAT’S BETTER THAN MINE.” — Frank LanzkronTamarazo, on why he went from being a cantor in illinois to owning a coffee roaster in Ferndale

Andy Appleby has drawn up a couple of big plays on the diamond and the pitch. The chairman and CEO of Rochester-based General Sports and Entertainment LLC said the stalled effort to expand the United Shore Professional Baseball League has found renewed momentum — as has the bid to take over Derby County Football Club in England. Both are longtime passions of Appleby Appleby, a former Detroit Pistons executive who took over as chairman of Derby County in 2008, left in 2015 and launched the Utica-based professional baseball league the following year. The past couple of years have been disappointing on several fronts, Appleby said. The COVID-19 pandemic erased ballpark revenue, put expansion plans on ice and left the future of his sports business hanging in the balance. But now there is reason for optimism — on the baseball and soccer side, he said. “We’re experiencing a nice upswing,” Appleby said in an interview Monday. “We probably deserve it because of what we’ve been through with COVID.” Attendance at Jimmy John’s Field has averaged 3,300 since the USPBL season started a month ago. That’s slightly better than attendance See APPLEBY on Page 18

Music Hall plan could bring new concert venue downtown Vision would also expand offerings tied to the business side of music BY SHERRI WELCH

Music Hall Center for the Performing Arts is developing plans for an expansion that could bring a new, contemporary concert venue to downtown Detroit. As envisioned, the new venue would have capacity for 1,900 people and give younger audiences a place to call their own, with rock 'n' roll, techno and comedy acts. The six-floor expansion would double the current space of Music Hall and also include leased recording studios, offices for agents and other music industry professionals, and a music academy operated by the nonprofit, President and Artistic Director Vince Paul said. Music Hall purchased the site

planned for the expansion, the parking lot at 300 Madison next to its building, in March from Madison Randolph Associates LLC for $4.6 million. Paul It had long leased the lot and had an option to purchase it that was set to expire, Paul said. More than a dozen of Music Hall’s trustees stepped up with donations that enabled it to buy the property. The parking lot is very important to the way it currently operates, serving as patron parking, a loading zone for shows and a venue for

summer activities, said Board Chairman Alex Parrish, co-leader of the mergers and acquisitions practice group of Honigman LLP. It was important that Music Hall not lose control of the property. So when it became apparent that the property was going to be sold, trustees stepped up to help the cultural organization get control of it, he said. “We have some great plans, which are just that. They are plans at this point,” Parrish said. “We’ve made enormous progress in the last five years...overcome some incredible hurdles. And we’ve done it without a significant capital reserve," he added. See MUSIC HALL on Page 18

Music Hall Center for the Performing Arts has acquired the parking lot next door and is developing plans for an expansion that would double its size and include a new concert venue. | MUSIC HALL CENTER FOR THE PERFORMING ARTS JUNE 27, 2022 | CRAIN’S DETROIT BUSINESS | 3

REAL ESTATE INSIDER

Midtown site was issued blight tickets as lawmakers rescued it Last summer, state lawmakers threw a lifeline to the team behind a long delayed major Midtown development proposal just days after the city hit it Kirk with tickets for sePINHO rious blight violations. The seven blight tickets issued on June 5, 2021 that came to my attention last week had sat unpaid in collections for months, totaling a little over $4,000 in fines. The Buildings, Safety Engineering and Environmental Department says the tickets were for things like failure to abate unsafe conditions, failure to comply with an emergency or imminent danger order, failure to obtain a certificate of compliance and failure to maintain a vacant building or structure. They were issued at The Mid property in Midtown just a few days before the state Legislature on June 9, 2021 signed off on granting its owner, an affiliate of Ciena Healthcare CEO Mohammad Qazi, a two-year extension on $8.97 million in brownfield tax credits that would have expired had the two chambers not intervened. The expiration of those credits was portrayed as a fatal blow to the development plans, the last projected cost of which was $377 million. "Confirming the blight tickets were

not past due intentionally — apparently the city's notifications/tickets had not actually reached The Mid team. They are now paid in full," the spokesperson said last week. "Also worth noting the team is regularly paying for maintenance crews to clean up the site and recently had a clean-up session last month." A BSEED spokesperson did not return a request for confirmation the tickets have been paid. Of course, the $4,000 owed total was chump change, particularly when considering the $15 million Qazi paid for the site in 2018. Or a city general fund budget of $1 billion-plus. Or the fees paid to architects, brokers, lawyers, accountants, engineers and other professionals since as they came up with the vision to bring a pair of high-rises to the 3.78 acres at 3750 Woodward Ave. immediately north of Midtown's Whole Foods store. To be fair, The Mid is far from the only large-scale development site to be issued blight tickets. For example, Dan Gilbert's Bedrock LLC received one for $100 for graffiti on the National Theater property that's supposed to become part of the eventual Monroe Blocks project — whenever and if ever that happens. That was issued in July 2020 and wasn't paid until last month, according to city records. The Mid project is years behind its original schedule (of course, as is Monroe Blocks), now with a Sept. 14, 2023 deadline to have completed

A spokesperson for The Mid development project says seven blight tickets issued in June 2021 have now been paid. | KIRK PINHO/CRAIN’S DETROIT BUSINESS

THE MID PROJECT IS YEARS BEHIND ITS ORIGINAL SCHEDULE, NOW WITH A SEPT. 14, 2023, DEADLINE TO HAVE COMPLETED SEVEN STORIES OF A 15-STORY TOWER NEAR WOODWARD AND MACK AVENUES. seven stories of a 15-story tower near Woodward and Mack avenues. Barring another intervention by state lawmakers, if it doesn't hit that

milestone, the brownfield credits expire. In December, the spokesperson said the project would start construction by the second quarter, which is rapidly coming to a close, indicating to me that yet another stated timeline for building something at the key site will pass with nothing being done. The spokesperson did not provide an updated construction framework on Tuesday. The Mid's seven floors of a 15-story hotel were to total $50 million in investment on a $164 million first phase of the project, which has also received approvals for $58.3 million in brownfield tax-increment financing.

It has been one of the more ambitious formally proposed in Detroit in the last several years. When it was first unveiled in March 2019, it included plans for a 25-story hotel and condominium tower and a 30-story residential tower, in addition to other buildings including more residential and retail space, plus parking and green space. They would be among the tallest buildings built north of Mack Avenue since the 1920s.

Hit me up Email: kpinho@crain.com Desk: (313) 446-0412 (I still check this voicemail, even when WFH) Twitter: @kirkpinhoCDB

Michigan company buys over 1,600 affordable apartments BY ARIELLE KASS

Nine Michigan rental properties with more than 1,600 affordable apartments were acquired by a pair of developers that plan to modernize and preserve the low-cost units. Ginosko Development, based in Michigan, partnered with New Yorkbased L+M Development Partners to acquire the portfolio. A spokesperson declined comment regarding how much the properties sold for or who they were acquired from. In a statement, the companies said the properties include 1,640 units in 115 buildings in Michigan. More than half the units are for seniors, while seven of the nine properties have contracts with the U.S. Department of Housing and Urban Development for Section 8 housing — including two properties, where units are restricted to residents who make 60 percent or less of the area median income. The companies said they intend to improve the interiors and exteriors of the buildings, while keeping them affordable. Planned improvements include renovating kitchens and bathrooms, modernizing amenity areas, upgrading mechanical systems and improving the landscaping, the companies said. "Preserving our nation's afford4 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

able housing stock has never been more important and as we work to rehabilitate each site, residents will not only receive improved living environments but will also be assured that their homes will remain affordable," Jeffrey Moelis, Managing Director at L+M Development Partners, said in a statement. The properties are:  Art Center at 5351 Chrysler Drive in Detroit, with 40 two-bedroom and 20 three-bedroom units  Greenhouse at 17300 Southfield Freeway in Detroit, with 209 one-bedroom units for seniors  Lexington Village at 1310 Pallister St. in Detroit, with 207 one-bedroom, 124 two-bedroom and 20 three-bedroom units. Of the total, 200 units are for seniors  Charring Square at 6123 Greenwycke Lane in Monroe, with 56 one-bedroom, 86 two-bedroom and 58 three-bedroom units  Lawrence Park at 7000 East 10 Mile Road in Center Line, with 120 one-bedroom, 108 two-bedroom and 24 three-bedrooms units. Of the total, 126 units are for seniors  Lincolnshire at 44908 Trail Court in Canton, with 24 one-bedroom, 103 two-bedroom and 20 three-bedroom units  Phoenix Place at 47251 Woodward

Ave. in Pontiac, with 201 one-bedroom units for seniors  Birch Park at 300 Birch Park Drive in Saginaw, with four one-bedroom, 84 two-bedroom and 32 three-bedroom units  Coventry Woods at 3550 Remembrance Road NW in Walker, with 100 one-bedroom units for seniors Ginosko Development Co., which is a participant in Citi’s Emerging Manager Fund to preserve affordable housing and increase opportunities for diverse developers, used equity through that fund to purchase four of the properties, as well as conventional debt through the Community Preservation Corporation, Freddie Mac, and Merchants Bank. The other five were acquired using bridge financing from those institutions. The company intends to syndicate them using "4% Low Income Housing Tax Credits" through a tax-exempt bond issuance provided by the Michigan State Housing Development Authority. "I truly do believe these deals reflect the heart of economic and collaborative equality," Ginosko Develepment Co. founder, president and CEO Amin Irving said in a statement. Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

Coventry Woods, located at 3550 Remembrance Road NW, in Walker, has 100 one-bedroom units for seniors. | PHOTOS BY CBRE

Lawrence Park in Center Line, includes 120 one-bedroom, 108 two-bedroom and 24 three-bedroom units.

Lexington Village in Detroit, has 207 one-bedrooms, 124 two-bedrooms and 20 three-bedroom units.

¬22 in 2022 We’ve increased our U.S. minimum hourly wage to ¬22 on the way to ¬25 by 2025. Since 2017, Bank of America has raised the minimum rate of pay for all U.S. employees by more than 46%, bringing it to an annual rate of more than $45,000 for full-time employees. It’s part of our commitment to being a great place to work and one way we help employees build a career with us. We’re also encouraging job growth and providing economic security for thousands of individuals who are supporting fellow teammates, our clients and the local communities where we live and work. Offering competitive pay and benefits to support our employees and their families is critical to attracting and retaining the best talent. We’ll keep leading the way and doing more. When you have a strong team, you want to take care of them the best way you can. Raising the minimum rate of pay is just one way for us to show that we care and value everyone’s commitment.

Matt Elliott President, Bank of America Detroit

What would you like the power to do?® Learn more at bankofamerica.com/detroit

COMMENTARY

Time to scrutinize the pharmacy’s middlemen BY MICHAEL CROWE

being of patients. It is vital to shed light on those practices. PBMs came into being as health he Federal Trade Commission care claims processors and still have announced earlier this month this role today. When you pick up a that it will investigate the prescription and hand over your inhealth care industry's hidden midsurance card, the PBM confirms that dlemen, pharmacy benefit managyou are properly insured, tells the ers (PBMs), who have helped create pharmacy what copay you owe, and a system that forces the rest of the health care world to play by their Michael Crowe, alerts your insurance that you picked rules. Pharm.D., MBA, up your prescription. These services are useful. However, what if your inThe FTC will investigate PBMs’ is president of surance doesn’t cover the drug you vertical integration and how it has the Michigan were prescribed? Who decides affected the price of prescription Pharmacists what’s covered? How is this deterdrugs in America. Association mined? Crain’s published an op-ed on PBMs decide what drugs are inJune 4 claiming that PBMs lower the cost of prescription drugs and calling on the cluded on their drug formularies — lists of preFTC to investigate drug manufacturers in- scription drugs that are approved to be prestead. Pharma’s role in cost-setting should be scribed by a particular health insurance policy examined, but we know PBMs are part of the or health care system. They often have the efproblem as well. PBMs have convinced many fect of forcing your doctor or pharmacist to that they lower the cost of drugs, but closer in- find different drugs than what you were initialspection shows that their profiteering hurts ly prescribed that may not work as well for you. While formularies are purportedly develpatients. For instance, many people may view com- oped based on efficacy and safety, the primary panies like CVS as a neighborhood corner reason drugs are included in a formulary is pharmacy. However, CVS is more than that. whether or not they earn the PBM rebates. The They own CVS/Caremark — one of the largest drug manufacturer issues rebates to a PBM PBMs in the country — as well as Aetna insur- when certain brand name drugs are disance. Since the insurance company, PBM, and pharmacy are all JUST A HANDFUL OF PBMS HAVE A owned by the same entity — a classic case of vertical integration MONOPOLY ON THE ENTIRE — one can imagine how the cost of prescription drugs might be in- PRESCRIPTION DRUG MARKET. fluenced by their mutual interests. Moreover, just a handful of PBMs have a mo- pensed, which can help lower the cost of drugs nopoly on the entire prescription drug market in the absence of a generic option. However, in the United States. This allows them to not even when a generic drug enters the market, only rig the rules of the game, but to serve as PBMs don’t automatically add this lower cost umpire and scorekeeper, ensuring they always medication to their formulary. An example is Adderall; a generic version of win. It is important to note that there are some Adderall has been around for a decade. HowPBMs employing novel methods to improve ever, many insurance plans, including the patient care, and there are PBM-employed Michigan Medicaid program, still require the pharmacists and technicians who are doing brand name to be dispensed by pharmacists good things for patients. Nevertheless, the because the rebate is so lucrative. PBMs with the largest market share still place an emphasis on practices that ignore the wellSee PHARMACY on Page 7

The Cereal City tourist center sits next to the Kellogg Co. headquarters building in Battle Creek. | BLOOMBERG

COMMENTARY

The slow abandonment of cereal and city that made it

cCamly Place was bustling in the late 1980s in downtown Battle Creek — particularly on Sundays when the after-church crowd arrived for brunch at the popular Piccadily Grille. In the shadow of the Kellogg Co. world headquarters, the “Place” existed as the epicenter of city life for a country boy like me that grew up in the bucolic rural stretches outside town. Growing up in and around Battle Creek meant your life was intertwined with Kellogg and all things sugary cereal. Your family worked there (my grandma spent most of the 1950s and 1960s cooking corn flakes and my aunt spent most of her career in the company’s payroll department). June meant lugging the family down to the World’s Longest Breakfast Table, where picnic tables stretched to the horizon down the city’s main drag in front of McCamly. The offerings were tiny boxes of Frosted Flakes and Froot Loops alongside pints of 2 percent milk. In July, you prayed to the cereal gods that the Tony the Tiger hot air balloon would land in your backyard during the city’s International Balloon Festival. During the day, the air in Battle Creek smelled sweet and yeasty from the manufacturing of Frosted Flakes. At night, the rival Post factory down the street exhausted the unmistakable scent of Fruity Pebbles. Driving with the windows down was a whole vibe in the Creek. In 1988, the ready-to-eat cereal market ballooned to $5.4 billion, growing at a clip three times faster than average in the grocery sector, and Kellogg alone controlled nearly 50 percent of the market. But tastes started to change in the 1990s and so did the Cereal City. Globalization made offshoring advantageous — Kellogg moved much of its North American production to Mexico — just as consumer tastes were changing. Carlos Gutierrez, CEO of Kellogg in 1999 and the U.S. Secretary of Commerce under President George W. Bush, began Kellogg’s cutting strategy known as “volume to value” that resulted in the company focusing on higher-margin products and directing more

Dustin

WALSH

cash away from plant operations and into marketing. It worked. For a while. U.S. cereal sales declined 30 percent between 2000 and 2020 — with a brief pickup during the early days of the pandemic due to people sheltering in place. Instead, millennials moved on to avocado toast, protein bars and vegetable drinks. Kellogg cut and cut and cut its way to profitability — it launched Project K in the mid2010s designed to trim $425 million to $475 million from the company’s annual costs, largely by terminating positions. Unsurprisingly, a decline of the city followed. Piccadilly Grille was the first to go, closing more than 20 years ago. J.W. Barleycorns, an old Kellogg happy hour favorite, is gone too. And two months ago, bulldozers pushed down the walls of McCamly Place as part of a $59 million hotel renovation project. The renovation is being funded by the city's economic development arm Battle Creek Unlimited, not a private developer, in hopes a bu yer emerges for the property. The days of high school students crossing the stage of graduation, to the factory, to the dealership to put a down payment on a new truck are also over. The city’s per capita income is 23 percent lower than the state average, and 22.7 percent of the city’s residents live in poverty. Kellogg’s announcement this week to split into three separate companies with its largest division, snack foods, to be headquartered in Chicagoland is the latest blow. Kellogg management will tell you nothing is changing from an operations standpoint. See KELLOGG on Page 7

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 | JUNE 27, 2022

ISTOCK

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.

OPINION

KELLOGG

From Page 6

The cereal and plant-based meat division will stay in Battle Creek. The workers won’t move. But the writing's on the wall in powdered sugar and marshmallows and fancy addresses. In 2018, CEO Steven Cahillane paid more than $5.62 million for a five-bedroom mansion in the Lincoln Park neighborhood of Chicago and Chief Growth Officer Monica McGurk bought a house in suburban Winnetka for $2.05 million. The snack food division accounts for 80 percent of Kellogg’s sales and almost all of its quarter-to-quarter growth. It’s clear the smaller, strug-

gling cereal division is being left to flounder in Battle Creek. With no expected growth in the cereal market, what can the company do but either sink in milk or dissolve? Kellogg employs under 2,000 in Battle Creek, most at its global headquarters downtown and its R&D center. Another roughly 385 Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Local 3G workers are employed at its Battle Creek plant, down from 2,150 in 1990 and 3,455 in 1970. Along with their other North American counterparts, the union shutdown the cereal maker for 11 weeks last year to secure future wages. Kellogg is expected to close on the company separation by the end of 2023. The factory in Battle Creek is

now contracted to remain open through 2026. It makes you wonder whether there will be any Kellogg employees left in Battle Creek by 2027. The last places to find the Kellogg name in Battle Creek may be at the foundation that bears its founder’s name and the city’s Oak Hill Cemetery where the Kellogg brothers were laid to rest. A stark contrast from 1988 when school children all over town lined up for their annual tour of the Kellogg factory and spent Saturday mornings emptying cereal boxes to uncover the Private Eye Binoculars prize hidden at the bottom. Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

Kellogg helped create the breakfast cereal industry that has fallen on hard times as people turn to other options. | BLOOMBERG

PHARMACY

From Page 6

Last year alone, the state of Michigan received more than $2 billion in rebates through its Medicaid program drug formulary. While Michigan Medicaid’s financial information is public, it is not so easy to trace the rebate profits of PBMs. Who is picking up the difference when, according to the Food and Drug Administration, generic medicines typically cost 80 to 85 percent less than their brand-name counterparts? The rebate system incentivizes PBMs to keep higher cost drugs on their formulary, forcing patients and insurers to pay more for their health care. As part of their vertically integrated structure, PBMs can force prescribers to use mail-order pharmacies or only pharmacies the PBM owns, leaving patients with fewer choices. Patients trust their pharmacist to answer any questions about their medication, but what happens when they are mailed their prescription instead? PBMs tell them to call and discuss their medications over the phone, but due to long wait times, many patients end up going into their local pharmacy with questions anyway. In the years leading up to the pandemic, small businesses exploded with growth. Unfortunately, independently owned pharmacies did not follow that trend. Independent pharmacies used to flourish in every city and town in Michigan. However, these mom-and-pop pharmacies have been disappearing over the past 20 years, replaced by chain drug stores or nothing at all. Small businesses are the backbone of communities; they sponsor fundraisers, parades and little league. It’s these small community pharmacies that are hurt the most when health care companies and unions buy into the pretense that PBMs are protecting them by forcing them to use mail-order or PBM-owned pharmacies. Since the 1990s, the Michigan Pharmacists Association estimates that more than half of Michigan’s community pharmacies have closed. PBMs claim they are saving you money, but at what cost? PBMs have been operating in the shadows for too long. It’s time these middlemen come out of the dark for everyone to see their schemes and how they profit from them.

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JUNE 27, 2022 | CRAIN’S DETROIT BUSINESS | 7

CRAIN'S LIST | PHYSICIAN ORGANIZATIONS Ranked by number of physicians COMPANY ADDRESS PHONE; WEBSITE

TOP EXECUTIVE(S)

PHYSICIANS JAN. 2022/ 2021

FULL-TIME EMPLOYED PHYSICIANS JAN. 2022/ 2021

PART-TIME EMPLOYED PHYSICIANS JAN. 2022/ 2021

TYPE OF ORGANIZATION

HOSPITAL AFFILIATION

BEAUMONT ACCOUNTABLE CARE ORGANIZATION 1

Walter Lorang executive director and COO

4,237 1

0 0

0 NA

ACO

Beaumont hospitals in Royal Oak, Dearborn, Farmington Hills, Grosse Pointe, Taylor, Trenton, Troy and Wayne

MCLAREN PHYSICIAN PARTNERS

Gary Wentzloff president and CEO

2,668

1,040 1,013

NA NA

CIN

McLaren Health Care Corp., Karmanos Cancer Center

THE PHYSICIAN ALLIANCE LLC

Michael Madden president and CEO Karen Swanson chief medical officer

2,433

853 803

NA NA

IPA

Ascension Southeast Michigan, Children's Hospital of Michigan, Detroit Receiving Hospital, Beaumont Health, Henry Ford Health System, McLaren-Macomb, Harper Hospital, Karmanos Cancer Institute

UNIVERSITY OF MICHIGAN FACULTY GROUP PRACTICE

Timothy Johnson senior associate dean for clinical affairs

2,373

2,373 2,354

NA NA

Group practice

Michigan Medicine (formerly University of Michigan Health System)

HENRY FORD PHYSICIAN NETWORK

Bruce Muma president and CEO

2,256

1,589 1,688

0 NA

CIN

Henry Ford Health System; others. Includes 1,589 employed physicians in the Henry Ford Medical Group and another 667 independent physicians and those who are part of HFPN Physician Networks in Southeast Michigan.

UNITED PHYSICIANS INC.

Diane Slon EVP, COO Michael Williams president and CEO

1,700

0 0

NA NA

IPA

Ascension, Beaumont Health, Children's Hospital of Michigan, and affiliates, Detroit Medical Center hospitals, Garden City Hospital, Henry Ford Health System, Karmanos Cancer Center, McLaren Health Care Corp., Oakland Regional Hospitals, Select Specialty Hospitals, St. Joseph Mercy Health System, St. Mary Mercy Hospital of Livonia, Triumph Hospital of Detroit, UM Hospital, others

UNITED OUTSTANDING PHYSICIANS LLC

Yasser Hammoud CEO and medical director

1,298

0 0

NA NA

ACO

AFFINIA HEALTH NETWORK CIN (TRINITY HEALTH ALLIANCE CIN)

Shaun Raleigh vice president of population health

1,021 e

NA 454

NA NA

CIN

Mercy Health Saint Mary's, Mercy Health Muskegon, Mercy Health Lakeshore

MCAULEY HEALTH PARTNERS ACO LLC

Christina Harsant regional director ACO/CIN Melissa Bolt executive director

990

990 NA

NA NA

ACO

St. Joseph Mercy Ann Arbor, St. Joseph Mercy Chelsea, St. Joseph Mercy Livingston

BEAUMONT MEDICAL GROUP

Daniel Frattarelli president

972

908 825

64 85

Group practice

Beaumont Dearborn, Beaumont Farmington Hills, Beaumont Grosse Pointe, Beaumont Royal Oak, Beaumont Taylor, Beaumont Trenton, Beaumont Troy, Beaumont Wayne

MEDNET ONE HEALTH SOLUTIONS

Ewa Matuszewski CEO

950

0 969

NA NA

IPA

Ascension Providence Rochester, Henry Ford Health System, Beaumont Health, McLaren Health System, ProMedica, Ascension St. John, Detroit Medical Center, Hills and Dale

OAKLAND SOUTHFIELD PHYSICIANS PC

Jerome Frankel senior medical director Rodrigo Tobar Jr. associate medical director

815

0 0

NA NA

IPA

Beaumont Health System, Children's Hospital of Michigan, Henry Ford Health System, Huron Valley-Sinai Hospital, McLaren Oakland, Sinai-Grace Hospital, St. John Providence Health System, St. Joseph Mercy Ann Arbor, St. Joseph Mercy Livingston, St. Joseph Mercy Oakland, St. Mary Mercy Hospital Livonia

GMP NETWORK

Angela Vanker, executive director; Bruce Kelly, senior director of business operations

747

286 423

NA NA

IPA

Henry Ford Macomb Hospital-Clinton Township

CONSORTIUM OF INDEPENDENT PHYSICIAN ASSOCIATIONS (CIPA)

Meghan Sheridan MSO director Paul MacLellan president

700

75 75

0 0

IPA

Statewide hospital affiliations

IHA HEALTH SERVICES CORP.

Cindy Elliott president Jason Harris COO

609

570 510

39 38

Group practice

Saint Joseph Mercy Health System, Michigan Medicine

OAKLAND PHYSICIANS NETWORK SERVICES

James Gibson president Rodger Prong CEO

518

3 3

518 3

IPA

St. Joseph Mercy Hospital Oakland, Huron Valley-Sinai DMC, Beaumont Royal Oak, McLaren, Henry Ford

OLYMPIA MEDICAL LLC

Randall Bickle president and CEO

500

15 15

NA NA

IPA

Beaumont Farmington Hills, Garden City, St. Mary Mercy Livonia, Providence Park, St. Joseph-Ann Arbor

MICHIGAN HEALTHCARE PROFESSIONALS PC

Jeffrey Margolis president

482

482 460

15 17

Group practice

Beaumont Health, Beaumont Hospital Farmington Hills, Crittenton Hospital, Detroit Medical Center hospitals, Garden City Hospital, Henry Ford Hospital West Bloomfield, Huron Valley-Sinai Hospital, McLaren Macomb, McLaren Oakland, McLaren Lapeer, Pontiac General Hospital, Port Huron Hospital, St. John Providence Health System, St. Joseph Mercy Oakland, St. Mary Mercy Hospital

NOVELLO PHYSICIANS ORGANIZATION 2 4290 Copper Ridge Drive, Ste 110, Traverse City 49684 231-421-8505; npoinc.org

Nathan March medical director Marie Hooper executive director

476

0 0

NA NA

CIN

None

RELIANCE ACO

Nazmul Haque, CEO; Gene Farber, president, Reliance Health; Munzer Samad regional medical director

410

1 1

0 0

ACO

Ascension, Henry Ford, Beaumont, Trinity, DMC, McLaren, Garden City

PROFESSIONAL MEDICAL CORP.

Mike Grodus, director, Healthcare Transformation; Asif Ishaque, president

410

32 46

NA NA

IPA

Hurley Medical Center, McLaren Flint, Genesys

3 4 5 6 7

26901 Beaumont Blvd., Southfield 48033 947-522-0037; beaumont-aco.org

2701 Cambridge Court, Suite 200, Auburn Hills 48326 248-484-4928; mclarenpp.org 20952 12 Mile Road, Suite 130, St. Clair Shores 48081 586-498-3555; thephysicianalliance.org

4101 Medical Science Building I, Ann Arbor 48109-0624 800-211-8181; medicine.umich.edu/medschool/patient-care/u-mmedical-group 1 Ford Place, Detroit 48202 313-874-1466; henryford.com/hfpn

30600 Telegraph Road, Suite 4000, Bingham Farms 48025 248-593-0100; updoctors.com

18800 Hubbard Drive, Suite 200, Dearborn 48126 313-240-9867; uopdocs.com

1675 Leahy St., #200B, Muskegon 49442 231-672-3882; affiniahealth.com

24 Frank Lloyd Wright Drive Lobby J, Ann Arbor 48105

26901 Beaumont Blvd., Southfield 48033

4986 N. Adams Road, Suite D, Rochester 48306-1416 248-475-4701; mednetone.com

29200 Northwestern Highway, Suite 325, Southfield 48034 248-357-4048; ospdocs.com

43411 Garfield Road, Suite A, Clinton Township 48038 586-842-0870; gmpnetwork.org

39555 Orchard Hill Place, Suite 445, Novi 48375 800-594-6115; medicaladvantagegroup.com

24 Frank Lloyd Wright Drive, Lobby J2000, Ann Arbor 48105 734-747-6766; ihacares.com

2360 Orchard Lake Road, Sylvan Lake 48320 248-682-0088; opns.org

33300 Five Mile Road, Suite 210, Livonia 48154 313-357-1215; olympiadocs.com 30000 Northwestern Highway, Farmington Hills 48334-3292 248-851-3300; mhpdoctor.com

23900 Orchard Lake Road, Suite 200, Farmington Hills 48336 248-715-5400; relianceaco.org

2425 S. Linden Road, Suite B, Flint 48532 517-336-1400; pmcpo.com

2,040

2,650

2,331

2,376

2,323

1,700

1,206

1,021

1,125 e

910

969

773

862

700

548

518

450

477

510

389

464

Researched by Sonya D. Hill: shill@crain.com | This list of physician organizations encompasses physician hospital organizations and independent practice associations and is an approximate compilation of the largest such groups in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. IPA = Independent practice association. PHO = Physician hospital organization. ACO = Accountable care organization. CIN = Clinically integrated network. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the organizations. NA = not available. NOTES: e. Crain's estimate. 1. Beaumont Care Partners became a part of Beaumont Accountable Care Organization, effective April 1. 2. Formerly Northern Physicians Organization. The name was changed in January 2021.

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8 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

CORNELIA LI

CLIMATE MIGRANTS

A SAFER PLACE: Weathering future storm for present and future residents. PAGES 13 SEEING THE CHANGES: What a stormy night in a tent revealed. PAGE 13 HISTORICAL LOOK: Climate changes have long led people to migrate. PAGES 16

PORT IN A STORM? How the Midwest can be a refuge amid climate change — if we prepare. As droughts, floods and wildfires elsewhere force people to relocate, the Great Lakes region could get a wave of migrants. I BY ERIC FREEDMAN

Andrew and Shauna Parrish moved to Houghton in Michigan’s western Upper Peninsula in late 2021 after enduring a month of 100-degree days last summer in Boise under the constant haze of forest fire smoke choking out the skies of Idaho. Rodney Puttock picked up and left his hometown of Las Vegas in mid-2021 for the literal green pastures of Holly, Mich., where, unlike in Sin City, water is plentiful. And in 2019, Emily Tobin-LaVoy moved from flood-prone New Orleans to Marquette—along Lake Superior—after tiring of the near-constant threat of flood damage to her home and property in Louisiana’s Bayou Country. The early 20th century industrial rise of

northern cities like Detroit, Chicago and Cleveland was fueled by the Great Migration from the South for jobs in factories. In the early 21st century, global climate change is spawning a new kind of migrant to the Upper Midwest: “Climigrants” seeking refuge from the forest fires of Western states, flooding along the saltwater coasts and ever-rising temperatures causing drought in different corners of the continent. The reason for their arrival here is as old as time: Humans reacting to a threatening change in the environment around them and seeking a more habitable place to live. That’s because climate forecasts are grim. A new report from the National Oceano-

graphic and Atmospheric Administration warns that the U.S. coastline will see up to a foot of sea level rise by 2050 due to climate change. Meanwhile, more extreme weather events, such as more powerful tornadoes and hurricanes, loom. Wildfires are more common and more intense. Droughts are spreading further and lasting longer. Now some Great Lakes communities are pondering and planning what to do to accommodate a potential influx of climigrants and to improve their own resiliency to the adverse impacts of a changing climate. “We shouldn’t be afraid of climate migration, but we definitely need to prepare better for it,” said Conan Smith, president and CEO

of the Michigan Environmental Council. Smith notes that Michigan has lost hundreds of thousands of residents since the mid-2000s and has existing infrastructure that can accommodate new arrivals. At the same time, some of that infrastructure needs repair and modernization so people can trust the purity of their drinking water and maximize water efficiency, Smith said. There are other questions for policymakers and business leaders about planning for an economic future with new arrivals, said Mike Foley, director of the sustainability department in Cuyahoga County along the banks of Lake Erie in Ohio. See CLIMATE on Page 10 JUNE 27, 2022 | CRAIN’S DETROIT BUSINESS | 9

CLIMATE MIGRANTS

CLIMATE

Continued from Page 9

ing flooding saltwater coastal areas along the Atlantic and Gulf shorelines. For some, the pull may be family ties or alumni memories. For Rodney Puttock, water—a shortage of it—was the prime motivation to leave Las Vegas where he grew up and relocate to Holly, a village between Detroit and Flint that is still rooted in its agricultural hisEscaping calamities tory. “It’s a big issue in Las Vegas, the Many climigrants to the Great Lakes region would most likely place of my childhood,” said the come from eastern and southern 44-year-old Puttock, who makes coastal areas, from the voiceovers for television and radio commercials and does drought-stricken veteran coordinator work Southwest and West, for the American Legion and from wildfire-vuland Veterans of Foreign nerable parts of CaliforWars. nia and the Pacific The increase in At the time Puttock and Northwest. California acres Some will leave burned in wildfires his wife moved to Michigan in mid-2021, the two ahead of disaster with per square mile reservoirs that supply Las enough resources to rein 2002 to 2018 Vegas were abnormally settle comfortably. compared to low. Lake Mead, the largThat was the case of 1984 to 2001. est reservoir in the U.S., the Parrishes, both of was filled to only 35 % of whom have good-paySOURCE: EPA capacity. It’s since ing jobs in information dropped to a record low technology that can be done anywhere there’s a high-speed 31 percent in March of this year, while Lake Powell is at less than internet connection. Andrew Parrish, who grew up in one-fourth of its capacity. But in Michigan, “there’s water Atlanta, arrived in Boise in 1997 after graduating from Hillsdale Col- everywhere,” Puttock said. Puttock was amazed when he lege in Michigan. He was drawn by Boise’s greenbelt in the bucolic could purchase fresh produce along rural Michigan roadways. foothills of the Rocky Mountains. “You can’t find that where I’m But over time, Boise saw an influx of residents, causing housing prices from,” he said. For other climate migrants, the to soar and streets to become more congested while temperatures start- magnet may be the perceived solidity and serenity of place, or the lowed rising over time. Parrish calls this the “frog in the er cost of living than where they boiling pot of water” for Boise. Last came from or the ability to work resummer, the pot boiled over with 30 motely or the security of being comdays of temperatures over 100 de- paratively better-sheltered from the of unpredictable grees. Parrish is a runner and, start- vicissitudes ing in 2013, regularly checked Boi- weather and climate. Five cities in the Great Lakes rese’s air quality index before gion appear among the 10 most afventuring outside. “You’re willing to forgive some fordable places to live in the counthings, but the final straw for me try on the 2022-23 U.S. News & was that brutal summer,” Parrish World Report roster: Green Bay said. “It became clear to me that ranked second, Fort Wayne fifth, this confluence of factors—the Pittsburgh sixth, Peoria ninth and smoke and the heat and the wild- Youngstown 10th. Grand Rapids, fires—is not going to go anywhere South Bend, Kalamazoo and Cincinnati are among the top 25. anytime soon.” Beth Gibbons, executive director Fearful of water restrictions in drought-stricken Boise, Parrish and of the American Society of Adaptahis wife made access to fresh water tion Professionals, which is based in a top priority in deciding where to Ypsilanti, Mich., near Detroit, said her research shows the Great Lakes migrate to. “Boise is a wonderful place, but are not yet a unique factor in curwe came to determine there might rent migration to the region. “What we know about migration be an even better place,” he said. “What bigger lake is there than Su- is that people move first and foremost based on their kith and kin reperior?” lationships,” she said. “They go to places where they expect to find ‘There’s water community and relationships.” everywhere’ A few communities in the region, Other climigrants may be devas- including Buffalo and Duluth, have tated financially when their homes been pegged as possible climate haor businesses are destroyed and vens but don’t talk that way about they lack flood or other insurance, themselves, Gibbons said. “The cities are not rejecting that raising social justice questions for the communities they might move narrative, but they’re not putting programs and processes in place to to. For some climate migrants, the activate that in terms of recruitment region’s draw will be the opportuni- or receiving people,” Gibbons said. ty to live, work, create and play on the freshwater seas while abandonSee CLIMATE on Page 12 “There’s going to be migration happening,” Foley said. “If people are coming, and I think the theory is right, there will be a gradual and more-than-gradual migration into or back into the Midwest. We want those people to have a job when they come.”

2.46

“WE SHOULDN’T BE AFRAID OF CLIMATE MIGRATION, BUT WE DEFINITELY NEED TO PREPARE BETTER FOR IT.” — Conan Smith, president and CEO of the Michigan Environment Council 10 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

H b

Shauna and Andrew Parrish moved to Michigan’s Upper Peninsula after a summer of temperatures topping 100 degrees in their previous home of Idaho. | VERONICA URBANIAK/SPECIAL TO CRAIN’S DETROIT BUSINESS

AVERAGE ANNUAL BURNED ACREAGE BY STATE, 1984-2018 Wildfires have plagued Western states in recent years. These states not only have had more fires compared to other states, but have seen an increase in the number of fires in recent years. Average acres burned in wildfires per square mile 1

Some Great Lakes communities are preparing for a potential influx of residents moving from areas hit hard by climate change, such as the drought-ridden Southwest. | BLOOMBERG

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Why utili red con seri ens and with Mic we

The stro con ma sma fam help you Source: EPA

nt es

CLIMATE MIGRANTS

CORNELIA LI

Great Lakes residents divided on who should lead on environmental issues crop productivity, and sea-level rise Some Midwestern cities are already and storm surge. a top migration destination for those Research by The Harris Poll has affected by climate change—and that found that 6 in 10 U.S. adults worry pattern could dramatically increase if about the impact of climate change its global effects worsen. on their region. They are divided Regional officials should start (54%) as to whether they would move planning now for dealing with a cliif their area was negatively affected. mate-driven population influx that As vast and varied as the United could unfold over the next several deStates is, scientists predict that clicades. mate change will affect each of the Increases in the average global William Johnson is country’s regions in different ways. temperature threaten to have devas- CEO of The Harris U.S. adults believe that Western (19%) tating effects on the environment, Poll, a global public and Southeastern (14%) states are the world economy and overall societal opinion, market most likely to be negatively affected well-being. Scientists predict that cli- research and by climate change. Far fewer (4%) mate change will spark severe weath- strategy firm. think the Great Lakes region—deer events, worsen air and water qualifined here as Wisconsin, Illinois, Indity, disrupt agricultural seasons, ana, Michigan and Ohio—is the most likely to be destroy coastal areas and upset precipitation patnegatively affected by climate change. terns. Together, these consequences endanger While few believe that the Great Lakes region is human populations and hatch a new type of mias vulnerable as the West and Southeast, the grant, the climate refugee, who is forced to leave Midwest is not immune to a changing climate’s home due to significant environmental disrupharmful effects. According to the U.S. Global tion. Change Research Program, climate change may While the number of potential climate micause extreme heat, heavy rain and flooding in grants remains uncertain, researchers at the the Midwest. World Bank estimate there could become as Despite these threats, the Midwest’s environmany as 216 million internally displaced people ment is expected to be more hospitable than most across the globe due to “slow-onset climate other regions of the country and thus will be a popchange impacts” within the next three decades. ular destination for climate refugees. Its proximity The drivers of climate-induced migration include to huge freshwater sources makes it especially apextreme heat, land erosion, water scarcity, lower

pealing as droughts may worsen in other areas. The majority (77%) of Great Lakes residents are optimistic for their region’s future. Substantial portions consider their job opportunities (38%), access to public outdoor space (37%) and access to housing (26%) to be better than in other areas in the country, making the Great Lakes an attractive destination for new residents. Median home prices place Wisconsin, Illinois, Indiana, Michigan and Ohio in the nation’s top 20 most affordable states. However, those states perform less well when it comes to infrastructure — at least, according to U.S. News & World Report. When asked who should take the lead on issues related to the environment, the majority (69%) of Great Lakes residents cited some form of government. However, there is little consensus as to which level of government should be responsible: federal (26%), state (22%), or local (21%). In comparison, 31% of Great Lakes residents want either individuals or nongovernment entities like businesses to take the lead (21% and 10%, respectively). Local officials in any municipality or statehouse of course want to encourage population growth, and any increase in population cannot solely be attributed to any individual cause. If the effects of climate change worsen, more climate-induced migrants might seek shelter in the Midwest’s temperate environment. Officials in communities already affected by imperfect infrastructure should be planning for population growth regardless of its source.

SPONSORED CONTENT

Plan now for a climate-destabilized future Ed Miller is co-director of The Joyce Foundation’s Environment Program. He has worked on climate and energy policy in Great Lakes states for more than two decades. When I hear people talk about the notion of the Great Lakes region becoming a climate refuge for people fleeing extreme weather events, I think of the wisdom of a distant relative I met in my 20s. He was in his late 70s and still farming land he’d lived on his entire life. I had long hair and was fresh from studying environmental policy in college. When I shook his hand and eagerly said, “Nice to meet you,” he responded, “We’ll see.” While we can’t know for certain whether this region will be a largescale refuge for those fleeing climate disasters, we do know that with our abundant fresh water and insulation from sea-level rise, our region has the potential to provide relative security in a climate destabilized future. The impacts of climate change will increase everywhere in the coming decades, with low-income communities and communities of color bearing the greatest impacts. These communities deserve immediate investment to safeguard their environment and

public health. Here’s what we need to do to protect our climate future for current residents as well as those who may one day call the Great Lakes region home: 1) Commit to maintaining and upgrading our infrastructure, especially water infrastructure. No one would think anyplace is a good refuge if it doesn’t have safe drinking water or if living there meant a trade-off from coastal flooding to rain and sewage flooding their basements. Aging drinking water systems in many Great Lakes communities need repairs and upgrades immediately. This includes replacing lead service lines that deliver water into homes. Successful lead service line replacement efforts in cities like Lansing, Mich., demonstrate how this can be done methodically and in a cost-effective way. We also need to improve our stormwater infrastructure because climate change means more of our rain is falling in heavy downpours. Flooded basements in cities across the Great Lakes show that our current stormwater infrastructure cannot handle most of it. Expanding “green infrastructure” to safely capture

rainwater and upgrading traditional stormwater management systems are essential steps in ensuring Great Lakes climate resilience. In Illinois, The Joyce Foundation is supporting the Metropolitan Planning Council and Center for Neighborhood Technology to demonstrate new ways to fund and deploy green infrastructure that protects residents near Chicago waterways and Lake Michigan. 2) Take full advantage of increased federal infrastructure funds. Billions are now available through the Bipartisan Infrastructure Law, as well as other recent federal programs. Great Lakes states must direct these funds to communities that need them most. In Michigan, Joyce is partnering with the C.S. Mott Foundation in supporting the Michigan Municipal League Foundation’s MI Water Navigator program. That program will help Michigan communities access available water infrastructure resources, including an application cycle this November where local governments can seek financial support for drinking water, wastewater and stormwater upgrades. Joyce is also supporting related technical assistance efforts in other Great Lakes states. The availability of expanded federal infrastructure resources is a once-in-a-generation opportunity. We cannot underestimate its importance—or squander it.

3) Do our part to reduce the severity of climate impacts. Successfully reducing the pollution that is driving climate change requires action worldwide. Great Lakes states can play an important role by adopting effective, forward-looking climate and energy policies. Last fall, Illinois adopted the Climate & Equitable Jobs Act, a bold initiative making the state a national leader toward a 100 percent cleanenergy future. The act will eliminate carbon emissions from the electric power sector, provide equitable access to clean energy jobs, increase utility accountability and provide transition supports for communities historically dependent on fossil fuels. Recently developed climate and clean energy plans in Michigan, Wisconsin and Minnesota also lay out sustainable paths to a clean energy future. These efforts across Great Lakes states will help our region do its share in reducing global warming pollution, make the air cleaner and healthier locally, and create thousands of new jobs. Will the Great Lakes become a climate refuge for multitudes fleeing extreme weather disasters? We’ll see. Either way, we can get ready in ways that also meet the needs of current residents. The time to act is now.

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JUNE 27, 2022 | CRAIN’S DETROIT BUSINESS | 15

SMALL BUSINESS SPOTLIGHT

Culture, community make Avalon more than just a baker

BAKING UP SUCCESS BY JAY DAVIS Visit Avalon International Breads’ flagship location in Midtown Detroit long enough and you get a sense of warmth that has nothing to do

with the ovens pumping out organic baked goods and breads. It’s around 9:45 a.m. in early June. Customers file in and out to grab breakfast sandwiches, muffins and coffee. Patrons are enjoying the late spring sun on the 20-seat patio. The smell of fresh baked goods hits as soon as the doors swing open. It feels like more than a place of business. Owner Jackie Victor, who established Avalon in June 1997 with her then-partner Ann Perrault, mills about, talking with staff. She flashes a smile to every customer with whom she makes eye contact, thanking them for their business. It’s those people — Avalon’s staff and clientèle — who make everything possible, Victor says. As Avalon marks its 25th year in business, it’s those people who will be highlighted — honored in a way. “We’re starting with the employees and doing little profiles, and some of the customers, too,” the 57-year-old Victor said of plans for Avalon's social media and website. “We’re trying to shed light on what, and who, makes Avalon what it is, and that’s really the community and the employees.” The LBGTQ+-owned business has come a long way over those 25 years. Victor started with four staff in a 2,000-square-foot space at 422 W. Willis St. that had no windows and one working light bulb. Today, there are three retail locations, a 50,000-squarefoot bakehouse and 100 employees. Victor is not a baker by trade. She previously worked in the area of social justice. “I’ve always looked at it as a privilege to kind of midwife this place, but

to talk to people and ask them all, ‘why do you come here’? And hear them say they feel like family — that says something about the culture, the people, the customers, the employees,” Victor said, with a crack in her voice.

“I’VE ALWAYS LOOKED AT IT AS A PRIVILEGE TO KIND OF MIDWIFE THIS PLACE …”

Culture is Avalon’s bread and butter Victor estimated that Avalon’s retail locations — two in Detroit and one in Ann Arbor — serve about 1,000 customers a day. On Avalon’s first day in business in 2007, the Willis location — in what was still known as the Cass Corridor — served about 700 customers. “We didn’t sleep for 24 hours that first day. We were up baking and trying to get things ready and we just kept going,” Victor said. “It was a whirlwind.” That first year, Avalon brought in about $125,000 in revenue, according to Victor. Rent was cheap at the time

—Avalon owner Jackie Victor

Jackie Victor operates Avalon International Breads as a “socially conscious business.”

READ ALL OF CRAIN’S SBS PROFILES AT CRAINSDETROIT.COM/SMALLBUSINESSSPOTLIGHT 16 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

PHOTOS BY NIC ANTAYA /CRAIN’S DETROIT BUSINESS

Jana Sheppard (left) and Jessica Moore, both of Detroit, make sandwiches and quiche at Avalon International Breads in Detroit.

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FOCUS | SMALL BUSINESS SPOTLIGHT

PHOTOS BY NIC ANTAYA /CRAIN’S DETROIT BUSINESS

a e n .

— $500 a month for the Willis space. That has since ballooned to $5,000 a month as the neighborhood has been built up and rebranded as Midtown. Revenue has soared to a projected $6.45 million for 2022, up from $5.94 million last year, CFO Franz Narowski said. The bakehouse, at 4732 Bellevue Ave. on the city's east side, opened in 2012 and was part of a $2.2 million Avalon expansion that included the opening of a cafe inside Henry Ford Hospital, which closed in 2018. A popup inside Wayne State University's new Mike Ilitch School of Business was open a few months in 2016. The Ann Arbor cafe opened in 2016 and another in downtown Detroit in 2017. Retail and wholesale account for 60 percent and 40 percent, respectively, of Avalon’s annual revenue. The wholesale operation has 30 regular clients, including four Plum Market locations and four Sweetwaters Coffee & Tea cafes. Three hamburger buns and two vegan cakes are distributed through Sysco and Gordon Food Services. The business' growth and expansion might not have been possible without the generosity of others. Victor and Perrault, who left the business in 2014, started with $2,000 and a dream. They then crowdsourced family and friends until they had $30,000. That gave Victor and Perrault enough collateral to get a $160,000 loan from Comerica Bank. And they bought a used oven from Zingerman's in Ann Arbor at a discount. “We told (Comerica) we had $30,000 and a community that already supports us,” Victor said. “We know there’s a need. So we got the loan and that was pretty awesome.” Avalon operates on a “triple bottom line.” Earth is the first portion, as Avalon has made a commitment to offer organic ingredients, local ingredients and environmentally-friendly practices as often as possible. Community is also a big part of what Avalon does, supporting a different nonprofit organization each year. Avalon’s commitment to its employees calls for fair wages, benefits and an environment that encourages growth. Victor seems most thankful to those employees, some of whom have been with the company for close to two decades. “Employees are volunteers. They really do volunteer to come to work every day. They don’t have to, but they do. And I will never forget that,” Victor said. Victor believes barista Bevon Brooks is the company's longest-tenured employee, joining Avalon in 2003. The Detroit resident has "retired" twice, but found her way back each time. Brooks cites her co-workers as the reason she stays. Avalon Wholesale Sales Manager Jacob Schott started in 2004 as a delivery driver. The 39-year-old has been a part of the company for 15 of the past 18 years, working as lead driver, then wholesale manager at the Willis location. Schott was named wholesale sales manager in 2017 upon returning from a three-year stint with Russell Street Deli. The job is fulfilling, Schott said, but that’s not why he’s stayed for so long. “It’s honestly been the people, and our ethos,” said Schott, whose father, Rick, has worked with Avalon for 12 years, currently as warehouse and logistics manager. “We’ve seen so many ups and downs, and what has kept this ship righted is the investment and belief in our employees and community.”

Avalon International Breads opened on Willis Street in what was then called the Cass Corridor in Detroit in 1997. | NIC ANTAYA/CRAIN’S

DETROIT BUSINESS

Avalon by the numbers

` More than 3 million sea salt chocolate chip cookies

nesses. But they helped: The Willis Street location and bakehouse received two PPP loans totaling $985,286, the Ann Arbor location got two PPP loans totaling more than $472,000 and the Woodward Avenue store got about $466,502. Avalon also received an Economic Injury Disaster Loan of about $500,000 and Employee Retention Tax Credit funds — some of which it is still waiting for. “I’ll say this 10,000 times: Nobody would have gotten through (the COVID-19 pandemic) without the help of the federal government,” Victor said. “We reopened all three locations at the same time. The downtown location was the slowest to come back because you have Bedrock right there and they weren’t back to work (in its offices). Now downtown’s doing great. Ann Arbor’s doing great. It feels like, in the last eight weeks, there’s been a rebirth.”

` More than 250,000 shots of espresso

The next 25 years

Avalon International Breads this month marks 25 years in business. The business started with one location in the Cass Corridor and now has three retail spaces — two in Detroit, one in Ann Arbor — and a 50,000-square-foot baking facility that opened in 2012. Following is a breakdown of what Avalon has done in its first 25 years. Investment ` Three cafes in Detroit and Ann Arbor ` Opened 50,000-square-foot bakehouse in 2012 ` More than 100 employees “I love our Detroit community, and I love working for a company with that sentiment at its heart,” said Avalon Wholesale Manager Jacob Schott, who has been with the company for 15 years. | COURTESY OF JACOB SCHOTT

Reading the room In 1997, the neighborhood was not what it is now. Midtown and the nearby New Center Area are now home to more than 250 businesses, according to Midtown Detroit Inc. Executive Director Sue Mosey. There was not much of an investment being put into the Cass Corridor back then. Victor had the people of Detroit in mind when she and Perrault established the business. “I knew the area was kind of a food desert. Everybody deserves good, healthy food," Victor said. "When we first opened, there were so many people who were thankful to get a fresh loaf of bread for $3. That was more than what some places charged, but they were able to get it close to home. “Coming in, you could see that there was some skepticism that sometimes comes between customers and staff, but we’ve worked to instill that sense of family, sense of belonging into everyone who comes here.” Mosey said Avalon is part of the DNA of Midtown Detroit. "(Avalon) has served so many people for so long," she said. "They were really one of the early believers in the market here for a good, quality bakery. They've always had a great company philosophy of hiring local folks. There's so many things they do well." Victor, a Huntington Woods resi-

dent, is no stranger to Detroit. Her Russian immigrant grandfather, Ben, owned a department store in the Paradise Valley section of the city. Her father grew up in Paradise Valley. As a graduate of the University of Michigan with a degree in political science, Victor considers herself a rabble rouser. She believes she’s in the perfect place for that. “Part of our business plan was to be a socially conscious business," Victor said. "We want people to know we’re not just here to take their money or take up space in their neighborhood. It’s important to us, to me, to try to do all I can to help people.” In the aftermath of the George Floyd police killing in May 2020 in Minneapolis, Victor arranged focus groups with staff to get input on how Avalon could best represent the Black Lives Matter movement in its policies and how the business engages with the people of Detroit — a city that is 77 percent Black. “(Victor) didn’t just want to throw up a billboard and pay lip service. We made some real quality of work-life changes from those meetings, improving morale and making pay more equitable,” Schott said. “I think it was the perfect exercise in living our values, and I know we’ll continue those practices of employee- and community-led action.”

Production ` More than 100,000 loaves of hearth sourdough bread

` More than 2,500 pounds of local sunflower sprouts sold on its GardenWorks vegan sandwich SOURCE: AVALON INTERNATIONAL BREADS

Fighting to stay open The “uprising” after Floyd's death took place as the coronavirus pandemic took off and Victor worked hard to keep her business alive. Avalon shut down for about six to eight weeks early in the pandemic, laying off all but one employee — the CFO. One location, Avalon Cafe + Biscuit Bar in New Center, closed permanently. Businesses being closed and employees working remotely hurt business. And it became difficult to find staff who were comfortable working, she said. Avalon survived through wholesale work and delivering to grocery stores — and loans. Victor wrote an editorial in the New York Times on how the pandemic tore apart her business and how she worried a Paycheck Protection Program loan wouldn't be enough to save her company and many other small busi-

Detroit resident Matt Gessee — a 25-year customer — comes for the food, but stays for the camaraderie. “I come here every morning, meet my friends here,” said Gessee, who lives a short stroll away from the Willis location. “You come here, grab some good food, and just chat. This is a real neighborhood establishment. It’s always been this way. I wish there were more places like this around.” Victor hopes to maintain that reputation for at least another quarter century. She has some (unannounced) things in the works over the next year that include making changes to the Willis space. Distribution and manufacturing will expand, too. “What I’m most excited about is continuing to become more profitable because, then, we can be more sustainable and then employees can stay here longer and they can have better lives,” Victor said, beaming at the prospects she envisions. “Really, we’re trying to recommit to our three bottom lines and I think we’re nailing all three. I love where we’re at, but we have a long way to go before we’re at our North Star.” JUNE 27, 2022 | CRAIN’S DETROIT BUSINESS | 17

MUSIC HALL

rently offering to a projected 22,000 students this year, he said. Those programs include: a music and choir program for students attending

school on the former Marygrove College campus in Detroit, early childhood music programs across five Detroit Public Schools Community

District locations and monthly field trips for students to attend national touring theater productions. Music Hall is operating on an $11 million budget right now, up from $3.5 million just seven years ago. It had built up to a reported $6.27 million in revenue in fiscal 2019 before dropping to just over $3 million in 2020, according to 990s filed with the Internal Revenue Service. Paul is projecting the organization will hit $11 million in revenue this year with two new contracts expanding its calendar to 300 or more events annually. After laying off its employees for the first three months of the pandemic, it secured $2.6 million in shuttered operating venue grants for its main hall and paycheck protection program funding that enabled it to bring its employees back and open an amphitheater in the parking lot it now owns. It held open-air performances there and on its 3Fifty Terrace rooftop venue through the remainder of 2020 and in 2021, as weather permitted, before reopening the main hall this year. The PPP covered 70 percent of employment costs for the rest of 2020 and first three months of 2021, and the shuttered venue grant helped cover operating costs, Paul said. Music Hall also saved money on electricity, heating and cooling with the main hall closed, along with some expense on educational programs as they shifted to virtual offerings, he said. At the same time, earned revenue

sponsors United Wholesale Mortgage LLC and Jimmy John’s. “We’re having a really good year, kind of making up for the last couple of years,” he said. “There is some pent-up demand from companies and families to get out and have fun again.” When Appleby started the USPBL six years ago, he envisioned a travel league across multiple ballparks built and operated by the USPBL and funded through a mix of private and public dollars. He was closing in on an expansion deal before it was quashed by the pandemic. Appleby said he is in talks with two cities on the East Coast and one in

Texas to build a new USPBL stadium where two or more new teams would play, creating a travel league between Jimmy John’s Field and the new stadium. Appleby declined to name the cities. He said he expects to land a deal with one of the cities before the end of the year, launching the expansion team in 2024. “It’s a mild disappointment for me compared to what we thought in 2016, but working with public entities has never been harder,” he said. There are also plans to break ground later this year on a 10,000-square-foot office neighboring Jimmy John’s Field. It would function

as USBPL’s headquarters and possibly years. It plays in League One, the home to another tenant or two. third tier of the English Football Soccer is consuming most of his League, after being relegated last time in the immediate term, though. season due to poor play. Appleby is heading up a group bid to Appleby said he is optimistic about buy the financially distressed Derby his bid and expects to learn the outCounty Rams. The club is “THERE IS SOME PENT-UP DEMAND ... TO headed for liquidation if it GET OUT AND HAVE FUN AGAIN.” does not find a — Andy Appleby, USPBL new owner, according to local newspaper Derby come this week. Telegraph. “It’s down to the final strokes,” he Appleby had previously decided said. against bidding for the club, which has been insolvent and in search of a Contact: knagl@crain.com; new owner for the past couple of (313) 446-0337; @kurt_nagl

From Page 3

“I think you’ll see even more progress over the next couple years. This acquisition is evidence of that.” Paul declined to share more specifics on the project until it is finalized but said he expects to launch a fundraising campaign this fall to help support the project. “Detroit has a preponderance of historic theaters. We haven’t built a new theater of size in decades,” he said. The new concert venue would expand the demographic Music Hall serves, he said, building on its mission of bringing different communities in Detroit together by presenting every conceivable genre, from Bollywood, contemporary ballet, hip hop and Broadway to Johnny Mathis and family theater. “Younger people will inherit this town...we are responding to what the younger generations want from their city,” Paul said. The new expansion would increase the revenue Music Hall earns to support the performances and education programs it offers, through leases for office and recording spaces and the concert venue, Paul said. Nearly three-quarters of its budget already comes from earned revenue, a significant portion for a nonprofit. The music academy planned for the new site would build on the educational programs Music Hall is cur-

APPLEBY

From Page 3

during the same time in 2019, before the pandemic. Appleby said he expects annual revenue to be up 20 percent from last year when there were still state-mandated attendance restrictions. The league has also increased revenue from sponsors with about 20 new companies signing on, including Total Life Changes, Michigan Orthopaedic Surgeons, AAH Fluid Power Inc. and Mirage Banquets. The league is in its seventh year of 10-year deals with naming rights

Updates to the Jazz Cafe are part of $2.5 million in updates completed at Music Hall Center for the Performing Arts since 2019.| MUSIC HALL CENTER FOR THE PERFORMING ARTS

PEOPLE ON THE MOVE

was rising. Music Hall had signed a longterm contract with Broadway in Detroit in 2019 to provide four weeks of Broadway shows. Last year, it inked another deal with Hollywood Casino at Greektown — which doesn’t have a dedicated musical entertainment space — to present 40 contemporary pop concert and comedy events a year at the hall. “Those two collaborations, with our in-house productions, took us from a sleepy playhouse into a bigtime player” in the presenters space, Paul said. A $500,000 bequest from the late Music Hall trustee Julius Combs funded the creation of an archive of performances at Music Hall since 1928 and provided support for educational programs. With the federal grants that helped cover operations, cost savings from the operating shifts during the pandemic, increased earned revenue tied to its new contracts and the bequest, Music Hall was able to retire $1.7 million in debts tied to operations and maintenance of its current, 93-year-old venue last year, Paul said. It is also wrapping up about $2.5 million in infrastructure and renovation projects inside the hall, and has built a $2 million reserve. It’s now completing the last of the renovations, updating its second-floor lounge, Paul said. Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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Franco, a Detroitbased integrated communications agency, has hired Brent Snavely as vice president of media relations. Snavely is a veteran journalist and communications expert with more than two decades of experience. As Franco’s vice president of media relations, Snavely will leverage the skills he acquired working in newsrooms and in the PR industry to provide media relations and crisis communications strategy and counsel to Franco’s automotive and B2B clients.

Paige Wirth has joined Lambert, a PR, IR, and integrated communications agency, as Senior Director to expand client marketing services and maximize current capabilities in market research, digital marketing, and creative design. Most recently serving as Director of Marketing for the Michigan Economic Development Corporation, Paige has over 10 years of experience leading and executing multi-million-dollar national product launches, integrated marketing campaigns, and strategic brand initiatives.

Thomas Gaughan has joined Honigman as chief operating officer and a member of the senior management team. As COO, Gaughan is based in Chicago and oversees the firm’s business, financial and administrative operations. Gaughan has over 30 years of leadership experience in business development, talent management, information technology, practice support, and operations services. Honigman’s attorneys serve and counsel clients at all levels in numerous areas of complex legal practice.

Near Perfect Media, a Bloomfield Hills, Mich.-based public relations agency, has hired Daniel Pierce as senior vice president. Pierce joins Near Perfect Media from Ford Motor Company, where he was most recently a Global Communications Director, leading projects in the autonomous, electric and commercial vehicle areas. During his 22-year career, Pierce has held global leadership roles in both the corporate and agency worlds, including at General Motors, Anheuser-Busch and FleishmanHillard.

Explore Brighton Howell Area (EBHA) welcomes Trisha Patrias as Digital Marketing Manager. Patrias, a Cleary University graduate, has multiple years of direct destination marketing experience. At EBHA, Patrias will leverage the skills she acquired in the marketing, hospitality, and tourism industries to represent Livingston County’s travel marketing brand by focusing on multiple aspects such as social media, website SEO, print marketing, and Pure Michigan and industry stakeholder partnerships.

18 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

KELLOGG

From Page 1

Kellogg’s global snack food business, which includes Cheez-It, Eggo, Pop-Tarts and RXBAR — representing $11.4 billion in revenue, or about 80 percent of the company's sales — will move its base to Chicago while maintaining a significant operation in Battle Creek. It will continue to be overseen by Cahillane, who bought a $5.6 million mansion in Chicago in July 2018. Cahillane said that it was around November 2018, when the company announced its “Deploy for Growth” strategy, when the wheels began turning on a spinoff. “Obviously during the pandemic, you put a lot of things on pause as you’re just making sure that you can keep people safe, keep food going through the system,” he said. “But we never stopped exploring value-creation opportunities, and Cahillane the time is right now because we’ve got lots of strength. We feel like our top line has been reliably restored.” Kellogg has worked through the financial strains of inflation, labor shortages and production disruptions, including from a recent labor strike and the war in Ukraine, to stabilize its top and bottom lines, its earnings reports indicate. The company’s first quarter sales ticked up 2.4 percent year-over-year to $3.67 billion, and its operating profit increased 10 percent to $517 million. The growth is being driven in large part by its snacks segment, which has buoyed slumping cereal sales. Once the company’s core business, the cereal market has been in general decline for years. Sales and capacity were also severely impacted by an 11-week work stoppage last year at its cereal plants, including in Battle Creek. “… We more than offset the sales and cost impact of supply recovery in North America cereal with sustained momentum in snacks growth around the world,” Cahillane told investors last month. Kellogg’s announcement Tuesday elicited near instant reaction, though the long-term impact on workers and the company’s Michigan footprint remains to be seen.

Kellogg’s global headquarters in downtown Battle Creek. | KELLOGG

Kellogg for quite a while in terms of slowly dripping, dripping, leaving the Battle Creek area,” Hall told reporters Tuesday during a House session. “That's why we need to continue to grow and diversify our economy locally." Hall referenced the bipartisan Strategic Outreach and Attraction Reserve fund and his bill to create a research and development tax credit as ways to encourage Michigan-based corporations from taking their investment elsewhere — an issue that became more urgent this year when Ford Motor Co. and Stellantis NV chose to make mega investments in their EV futures in states to the south. On Wednesday, Kellogg officials met with Battle Creek stakeholders to discuss its decision. City Manager Rebecca Fleury said in a news conference after the meeting that Kellogg, which did not inform the city of its decision ahead of its announcement, assured community leaders that jobs in Battle Creek would not be reduced, nor would employees be asked to move elsewhere. Kellogg said its physical “BATTLE CREEK IS SYNONYMOUS WITH footprint in Battle Creek KELLOGG BUT THERE’S SO MUCH MORE will stay the GOING ON HERE THAN KELLOGG.” same while it expands in Chi— Joe Sobieralski, president and CEO, Battle Creek Unlimited cago. The snacks company move to ChiFleury also said Kellogg said it cago will “enhance global connectiv- plans to use its R&D facility — the ity” and is “not a cost saving exer- Kellogg Center for Innovation, which cise,” the company said. opened in 2019 — for all three com“All three companies will remain panies. committed to supporting the Battle The city manager pushed back on Creek community,” the company comments about Kellogg locating its said. "The transactions will not result new snacks company's headquarters in any office moves or closures, and in Chicago to attract talent. "We've the company’s intent is for its cur- learned that people can work anyrent real estate footprint to remain where, but Battle Creek is passionate the same." about having as many employees reRep. Matt Hall, a Marshall Repub- main in Battle Creek as possible," lican whose district includes the Bat- she said. tle Creek area but not the city, said “Battle Creek is synonymous with Kellogg did not give him a heads up Kellogg but there’s much more going about the reorganization. Local on here than Kellogg,” said Joe Sobileaders did not receive much of a eralski, president and CEO for Battle heads up, either, he said. Creek Unlimited, the city's econom"We've seen this happening with ic development arm. “We are going

to honor our history and our legacy here but we’re not going to rest on our laurels ... we’re going to diversify.” On the other side of Lake Michigan, Illinois Gov. J.B. Pritzker celebrated Michigan’s loss as his state’s gain. “Congrats to Kellogg on moving its iconic snacking HQ to Illinois,” he said in a social media post. “We’re happy that you’re making our great state your home.” Cahillane said that while the spinoff creates uncertainty for employees, it also creates opportunity. “As exciting as this is, obviously it creates uncertainty, and we’re well aware of that,” he said. “We’ve got a very strong change management agenda in place to keep our employees informed, motivated and engaged. Splitting the three companies creates exciting career opportunities for our folks.” The company’s core snack business will maintain a campus in Battle Creek, which will also be the base for its North American cereal business, which accounts for $2.4 billion in revenue and includes Frosted Flakes, Froot Loops, Mini-Wheats, Corn Flakes, Kashi, Bear Naked and other brands. Additionally, Battle Creek will be home to its much smaller plantbased products segment, which is anchored by the MorningStar Farms brand and nets about $340 million in yearly revenue. That piece of the company has the potential to grow quickly, according to the company, and is for sale for the right price. “We’re committed to a spinoff but we will also evaluate other strategic alternatives should they present themselves,” Cahillane said in response to a question about the possibility of a sale. “That could happen at any time.”

Foundation impact Battle Creek-based W.K. Kellogg Foundation is legally independent of the food manufacturer and doesn’t plan to pull up its Michigan stakes, its communications officer Samantha Meinke said.

The nonprofit was established as a private foundation more than 92 years ago by Will Keith Kellogg, the founder of Kellogg Co., but with his

own money earned from the company’s operations. It does not operate as a corporate giving arm of the Kellogg Co. Representatives of the foundation do serve on Kellogg’s board, however, as well as the W.K. Kellogg Foundation Trust, created by Will Keith Kellogg to hold the private foundation’s assets. The trust is Kellogg Co.'s largest shareholder, the company said on its website. "We believe this announcement is not about reduction, but about creation and growth," the foundation said in a statement. "Instead, we look forward to seeing how this strategy and the continued stewardship of Mr. Kellogg’s legacy of compassionate leadership will provide employees with new opportunities to build rewarding career paths." Investors reacted favorably to news of the spinoff. Kellogg (NYSE: K) saw its stock value increase about 2 percent to just less than $69 per share as of Tuesday's market close. “We’ve turned the business successfully back to growth,” Cahillane said. “Our portfolio is hitting its stride right now, so this is an opportunity to make it even better. … This was our evaluation, our choice. We’re doing it from a position of strength.” — Crain's Senior Reporters David Eggert and Sherri Welch contributed to this report. Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

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ABORTION

From Page 1

This is leaving Michigan Medicine in Ann Arbor to prepare for more abortion care, even as the state’s own legal framework hangs in the balance. “Things may change quickly in Ohio and potentially Indiana that would impact us here,” said Lisa Harris, an obstetrician and gynecologist at Michigan Medicine in Ann Arbor and associate chair of the obstetrics and gynecology department at the University of Michigan medical school. “We are at capacity at the moment, but we are and have been thinking about ways to determine if we can increase (abortion care) capacity since the injunction. There’s no obvious way to at this moment, but we’re working on it.” Harris and the team are preparing for a 10 percent to 50 percent increase in abortion care inquiries in the coming days and weeks. There were 20,102 legal abortions performed in Ohio in 2020, and it’s likely a portion of those who get pregnant in the state may seek abortion care elsewhere, since most women aren’t even aware they are pregnant at six weeks. Nationally, it’s estimated about one-third to three-quarters of those who would normally seek abortion that live in a state where it’s banned would seeks care in another state, Harris said. That means upwards of 15,000 patients could be seeking abortion care outside of Ohio, with Michigan currently being the closest legal state. Michigan Medicine only regularly performs abortions on patients with life-threatening complications or other potential issues requiring the termination of a pregnancy. But it is weighing whether it can see lesser threatened patients at its outpatient clinics across the state or boost its ability to provide medical abortions to supplement clinics like Planned Parenthood and Northland Family Planning Centers. “Here in Michigan, I’m working with our team of expert doctors, nurses and health care professionals to ensure we can provide care to as many patients as possible,” Sarah Wallett, chief medical officer for Planned Parenthood Michigan, said in a statement. “We are not going anywhere and we won’t stop fighting to protect access.”

Abortion in Michigan Abortions have been declining for generations in Michigan, so there is not excess infrastructure in place to handle the surge. There are fewer than 30 clinics and hospital system locations that provide abortions in the state. In 2020, the most recent data available, 29,669 induced abortions were recorded in Michigan, an 8.5 percent increase over 2019. However, abortions generally have been decreasing over the past 35 years. Induced abortions in Michigan are down nearly 40 percent since the record high year of 1987, according to data from the Michigan Department of Health and Human Services. Women who have already had children remain the majority of those seeking abortions, with 67 percent of abortions in 2020 performed on women who had a previous pregnancy go to term. More than half of all women who got an abortion in Michigan in 2020 had 20 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

Abortion rights and anti-abortion demonstrators outside the U.S. Supreme Court in Washington, D.C., on Friday. A deeply divided Supreme Court overturned the 1973 Roe v. Wade decision and wiped out the constitutional right to abortion, issuing a historic ruling likely to render the procedure largely illegal in half the country. | BLOOMBERG PHOTOS

pregnancy and are approved by the Federal Drug and Food Administration. “We will see an increase in self-managed abortion care, and these medications have been used safely for over 20 years and you can source them online,” Harris said.

Other issues

Abortion rights demonstrators react outside the U.S. Supreme Court in Washington, D.C., on Friday.

“THINGS MAY CHANGE QUICKLY IN OHIO AND POTENTIALLY INDIANA THAT WOULD IMPACT US HERE.” — Lisa Harris, an obstetrician and gynecologist at Michigan Medicine in Ann Arbor

not previously had an abortion. Of the total, 89 percent were performed at 12 weeks of pregnancy or earlier. Henry Ford Health reiterated its commitment to the "health and wellbeing of those we serve." "(We have the) responsibility to approach this issue through the lens of what’s in the best interest medically of our expectant patients and their families. Sometimes those patients are faced with heartbreakingly complex—even

life-threatening—scenarios, and they turn to us as their trusted health advisors to guide them—or, sometimes, save them—through our capabilities in medicine," the Detroit-based hospital system said in a statement. "While we will comply with whatever laws come from the overturning of Roe v. Wade, our steadfast dedication to supporting people along their entire health journeys remains." BHSH System said in a statement it is reviewing the Supreme Court decision. "We are currently determining what it means for our policies and practices and the people we serve to ensure we are following the law," it said.

What comes next? While Michigan Medicine and Planned Parenthood plan for a spike in abortion care due to the ruling,

Michigan’s temporary injunction looms large. Harris and other administrators at the system and the university are planning for the consequences of an abortion ban in the state. The 1931 ban does allow for an abortion to save the life of the mother, but does not define what the acceptable risk of dying is for mothers. “What is defined as acceptable to act in preserving a mother’s life?,” Harris asked. “We need to sort out what the risk of dying would need to be and how imminent that would need to be to provide abortion care in the state.” The system is also exploring whether or not they could provide assistance in getting patients to Illinois or Canada, where abortion is legal and pointing patients to websites that offer medicine for at-home medical abortions. Mifepristone is used together with another medication called misoprostol to end an early

Medical education remains a major hurdle for the university under an abortion ban. UM is ranked as the fourth-best OB-GYN medical program in the nation, according to U.S. News & World Report rankings. Harris said about 40 percent of the program’s graduates remain in Michigan to practice. But that begs the question whether potential students would choose a university in a state where abortion care training is likely banned. However, it’s the degradation of care that Harris fears the most. “There are many instances over my career where I have performed a life saving abortion in a matter of minutes because someone was going to hemorrhage to death,” Harris said. “The reason I can do that is because I have that skillset I’ve developed over a career. It won’t take long if we can’t continue to teach that skillset until it’s lost. That means in emergency situations, there won't be someone with the skills to do a life-saving abortion and instead will have to do hysterectomies instead, because they are trained how to do those. These procedures are much less safe and end the mother’s ability to get pregnant in the future. Harris said the health and safety of women should trump politics. "Most conversations around this are about policy and law and not on the ground about caregiving," she said. "Thinking about what this really means, outside the realm of politics, it gets sad and scary.” Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

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Owner Frank Lanzkron-Tamarazo pours beans for roasting at Chazzano Coffee Roasters. | NIC ANTAYA/ CRAIN’S DETROIT BUSINESS

CHAZZANO

Fortunately for him, good coffee can amount to a hill of beans. "This building has always been a little bit too small for us. But I've always wanted to own my own building,” Lanzkron-Tamarazo said. “'I'll add a second coffee roaster to help with supplying business, and I've never had room here to do that, and I'm going to hire a couple of part time employees because our hours will expand."

had officially established Chazzano Coffee Roasters. “He does a blend for me, The Lunch Café Blend, which is our regular coffee that we serve,” Coon said. “Then we do his espresso blend and decaf coffee…We get all whole bean from him and we grind our own.” Coon said the pandemic didn’t affect The Lunch Café’s relationship with Chazzano because the coffee roastery was able to continue delivering to their vendors. “The prices went up a little bit, but it’s not bad,” Coon said. “It’s not bad with everything the way it is now.”

a vacation then you've made it.” When he returns, work will resume on preparing the Berkley location for the move and the changes that will bring. But one thing that is sure not to change — you still won’t find any milk for customers. “I choose coffee not really by the region, but really by the quality. And I think ‘Is this something that's going to enhance my customers' lives?'" he said. "Are they going to sit in their home in their office and have a smile come over their face because this is a really good cup of coffee? Can they drink this without sugar and cream?"

Adjusting the brew

Building on beans

Contact: anna.fifelski@crain.com (313) 446-0458; @annafifelski

Unlike many cafés and restaurants, Chazzano came through the pandemic stronger than before, Lanzkron-Tamarazo said. "It's all about the coffee beans, it's about whole bean ground coffee, freshly roasted, that's the whole business,” he said. “So what people did during the pandemic, they bought a lot of coffee. They were buying more coffee than they needed and they were working from home.” He also introduced new products over the course of the pandemic, including face masks, lip balm, affogato, a coffee-based dessert, and coffee-flavored ice cream, which contains cholov yisroel, or kosher-supervised, milk. Before the pandemic Chazzano sold eight different kinds of coffee, but that has since espanded to 33 different roasts. There were still plenty of challenges though. Lanzkron-Tamarazo said he adjusted staff hours to prevent worker shortages and raised prices, both instore and for vendors, to counteract the supply chain issues. Wholesale prices of coffee beans have increased 60 to 100 percent. “It used to take one week to get from a port in a foreign country to America and now it could take five to six months,” Lanzkron-Tamarazo said. To counteract that delay, he said he has been ordering a surplus of beans throughout the pandemic to maintain supply to vendors. Those vendors include local Randazzo Fresh Market, Plum Market, Whole Foods, Western Market, The Lunch Café and more. Cinda Coon, owner of The Lunch Café in downtown Berkley, has been purchasing from Lanzkron-Tamarazo for 15 years — two years before he

Lanzkron-Tamarazo has plans to expand hours and services when he moves the shop to the new Berkley building. A second roaster will also mean more part-time employees will need to be hired to cover the extra hours of operation. The location change would have no impact on vendors that the roastery delivers to, he said, but it will make a big impact on customers at the shop. "It's going to be (a) huge (uptick in business) because people are gonna want to see the new building and we're gonna have seating inside,” he said. As for bigger dreams, despite his successes, Lanzkron-Tamarazo says he doesn’t anticipate that Chazzano Coffee Roasters will expand to multiple locations. “I think after all these years, it's unnecessary for me to expand,” Lanzkron-Tamarazo said. “I would entertain a franchise offer, definitely, but I like my life. I like all the other things that I do in my life…. Opening up another location is not something that fits my life.” Lanzkron-Tamarazo takes worklife balance seriously. So much so that Chazzano Coffee Roasters will be closed from July 2 to July 16 so that he and his wife, Lisa, can travel Michigan and neighboring states on a vacation. “It's not, ‘can you?’ but ‘you must’ as a business owner… you must take a vacation,” Lanzkron-Tamarazo said. “If you don't do that as a business owner, then it doesn't matter — you're living a really terrible life. "It's the mark of success of your business, (and it) doesn't matter how much money you're making with your business, but when you can take

From Page 3

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YourChildrensFoundation.org/caring-for-kids JUNE 27, 2022 | CRAIN’S DETROIT BUSINESS | 21

THE CONVERSATION

Chase Cantrell on development’s role in building self-determination BUILDING COMMUNITY VALUE: As executive director of Building Community Value, Chase L. Cantrell has had a hand in teaching hundreds of Detroiters about what it takes to develop property. Over more than five years, his program has helped people gain the skills to develop small residential projects, including many former land bank properties that he said might otherwise have been scooped up by speculators or investors. Some alumni have moved on to commercial development, as well. A trained lawyer, Cantrell said he thinks there are more opportunities to scale the work to take advantage of innovation and connections in the city of Detroit. A self-described "superconnector," Cantrell said it makes him feel like a proud parent to see the networks that form out of BCV's workshops — and the confidence participants gain in their futures, and the city's. | BY ARIELLE KASS  You founded Building Community Value in 2016. Can you tell me a little bit about the vision? The nature of real estate development in Detroit was, and in some respects still is, led by older, resourced white men. … I had worked on new market deals and (Low Income Housing Tax Credit) deals and all the subsidies imaginable that you need to make Midtown or downtown development work. And I know that Black people don't have much access to this information because there aren't that many Black real estate attorneys in the city of Detroit or regionally. So for me, it was just like, all right, I need to create a structure where we can begin to really help people understand what real estate development is, how it impacts neighborhoods, how they themselves can do it. And to begin to think through the barriers that exist for Black and Brown folks to do development, and what I could do in small and hopefully increasingly large ways to fix some of those problems.  What surprises you about the work? What has surprised me over time the most is that this is not a project, simply, in real estate development. The way that participants have framed it to me and the way that I have framed it for myself now is that it really is a practice in Black self-determination. The ownership of land, the ownership of property and the agency to be able to actually transform space is extremely powerful. Black Detroiters still feel a sense of being left out of a system. Even just teaching the skill, even if people don't go out and acquire a property and do a project, just learning the skill has provided people with a sense of agency that is palpable. ... But also

what I never expected to happen, but what has happened organically, is that we've created a network. At this point, we've had over 350 people take the course. And it's like, people begin to know each other and begin to work with one another or begin to work in similar geographies. So you know, I have begun to see how BCV becomes a launching point for people knowing each other and then deepening those connections over time.  Can you talk about the importance of feeling like you do have a say in Detroit's future? The foreclosure crisis was very tangible for most Detroiters. … So the idea of emergency management and the loss of democracy, the idea of things being stripped away, I think is still palpable for most Detroiters who stayed and those who had to leave. … When we talk about the Detroit Renaissance, it has a white face. So I think that again, this has been an innovative place. The idea of being able to preserve neighborhoods in a city with a deficit of resources for decades, that took innovation of residents and neighborhoods. So now that there are more resources, do those actually make it into the hands of Black and Brown residents? For those who are doing innovative things are they recognized as innovators? … The Black middle class has left. And part of it is the feeling of not being able to accomplish much here. … So this idea of self-determination is, if people actually felt that they had agency over their community, would they stay? And what I see in conversation with people who have real access, who are acquiring space, they have a different sense of agency than others who don't.

 You lived in France for a year. What made you come back to Detroit? I drive around the city or walk around my neighborhood and all I see is opportunity, right? A lot of it is based on loss and trauma, and all of these negative attributes. We have lost so much, but that also means that there is a very real chance to rebuild something new. … I think just naturally, my connection to Detroit propels me forward in that way. And I can't see that in other cities. Like, I don't see a space for me, professionally, in a Chicago, or an Atlanta or a D.C. I don't know what I would do. I would not just want to be a lawyer. Every city has problems, but I don't feel that I am the solution for those problems in those places.  You posted a story on Facebook about the gay club The Woodward burning, and said you had complicated thoughts. Can you share them? A lot of Black and gay clubs throughout the nation are owned by white men. …When the club started, it was a straight club. When it transitioned to a gay club, Black people were not welcome. And then over time, it became a very distinct Black cultural space. … Chase L. Cantrell is executive director at Building Community Value

There used to be dozens and dozens of gay clubs in like the '70s and '80s. We lost most of them. There are very few in Detroit, actually. And we don't have a "gayborhood." There's been conversation amongst LGBT leaders of whether we need one in Detroit at all. … Neighborhoods usually happen organically. They're not top-down from the planning department. Some queer person is like, 'I'm gonna open a coffee shop. And I'm gonna open a club.' … Yes, I'm a developer. But is that what I should develop? And I've had gay friends that are like, ‘Chase, you should be developing these kinds of spaces.’ I'm just like, 'I don't know if that's my spot.' … I very much feel like a Black man before I feel that I am samegender loving. There's a hierarchy of identities, and race is much more important for me. … So here's the flip side of the tragedy, is, can a Black person open a Black space? … But there is something again, back to this feeling of agency. There's something that is powerful for other, especia lly young, queer youth to see a Black person owning the Black space.

READ ALL THE CONVERSATIONS AT CRAINSDETROIT.COM/THECONVERSATION

RUMBLINGS

Small distillers that source a minimum amount of their grains from Michigan would see the state markup on their liquor products slashed in half under a bill headed to Gov. Gretchen Whitmer. The House voted 93-10 last Tuesday to give final approval to the legislation, which is designed to grow the craft spirits industry and create a market for in-state products that are distilled such as barley, grains and honey. The measure would apply to qualified distillers that make no more than 60,000 gallons of spirits a year, if at least 40 percent of their base distillate comes from grains grown 22 | CRAIN’S DETROIT BUSINESS | JUNE 27, 2022

and harvested in Michigan. The state Liquor Control Commission's gross profit on each bottle, currently 65 percent, would drop to 32.5 percent starting Jan. 1, 2023. Michigan had more than 130 small distillers as of last year. The sponsor, Republican Rep. Pat Outman of Six Lakes, said he expects the Democratic governor to sign the legislation after "all" of the stakeholders came on board following negotiations. "The idea behind it is to one, spur the growth of the craft distillery industry in the state of Michigan but also to spur the growth of a niche agricultural industry in the state of Michigan," he said, noting that Michigan

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Bill would lower state markup on craft liquor BY DAVID EGGERT

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had previously enacted laws to help expand craft breweries. "That really took off the industry. We're hoping to do the same here with craft distillers." A message seeking comment was left with Whitmer's office. The Liquor Control Commission opposes the bill. The agency told legislative

committees that it and the state Department of Agriculture and Rural Development have no way to verify if a spirits product contains at least 40 percent base distillate distilled from Michigan grain, and said the measure would reduce state revenue by $4.4 million to $8 million annually.

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SPONSORED BY CHILDREN’S FOUNDATION

A message from our CEO

Investing in positive opportunities and unique experiences for youth

• and help them develop social, emotional, cognitive and behavioral competence.

ince its inception, The Children’s Foundation has sought to strengthen children and their families through five focus areas: Mental Health, Nutritional Wellness, Injury Prevention, Abuse & Neglect and Cardiology & Oncology. While recently developing our first strategic plan, we recognized that our mission and reach have evolved and grown while community needs have increased. As a result, we expanded our Cardiology & Oncology focus to all Pediatric Research and added a Youth Development-specific focus area. The Children’s Foundation has been the leading funder of pediatric research in Michigan. We started with the Children’s Hospital of Michigan and now partner with several hospitals, universities and other organizations to fund the countless research projects critical to eliminating and treating childhood illnesses. Youth today are facing challenges that were unthinkable in the past. According to the Substance Abuse and Mental Health Services Administration, more than two-

That’s why 10 percent of our 2021 grant awards went to youth development programs. By investing in youth development programs, we can provide children with positive opportunities and further our strategic effort to address their needs and the needs of their families. Here, through our partnership with Crain’s Content Studio, we detail some of those awards and share the impact the programs are having on area children.

thirds of children report experiencing at least one traumatic event by the time they reach age 16. However, research shows that positive youth development programs • lower risky behaviors among youth, • strengthen young people’s sense of identity and belief in the future, • teach them self-regulation and selfefficacy,

First Tee coaches discuss core life values with the kids before golf lessons. Photo courtesy First Tee

2 | June 27, 2022

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Lawrence J. Burns, President and CEO, The Children’s Foundation

Racquet Up Detroit middle schoolers working on academic enrichment in the new facility. Photo courtesy Racquet Up

Executive INSIGHTS

6/21/22 9:39 AM

INSPIRING YOUTH

SPONSORED BY CHILDREN’S FOUNDATION

articipants in Racquet Up Detroit play squash, but the nonprofit offers far more than a chance for youth to rally on an inner-city court. The education and opportunity hub provides kids as young as fifth grade with squash instruction and competition, academic enrichment, character development, health, wellness, nutrition and fitness activities and education. It also offers them an opportunity to see what’s happening in other parts of the country through out-ofstate competitions, camps and educational partnerships. “We find what inspires a young person, then put the foot on the gas so they can pursue it,” said Racquet Up Executive Director Derek Aguirre. “It’s a holistic program, and our team does a great job of making every kid feel special.” The nonprofit’s mission complements The Children’s Foundation’s expanded goal of addressing the needs of children and families through positive youth development. Such programs help young people learn self-regulation and self-efficacy and promote social, emotional, cognitive and behavioral competence. They enhance the strengths of children and adolescents, empower them to develop positive relationships and leadership skills and provide resources critical for successful futures. In 2021, The Children’s Foundation supported nonprofits providing youth development programs, including Racquet Up, First Tee, Detroit Horse Power and the Boys and Girls Clubs of Southeastern Michigan and of Grand Rapids.

A Racquet Up student watches a peer play squash. The nonprofit pairs the game with academic achievement. Photo courtesy Racquet Up

STRENGTHENING A BELIEF IN THE FUTURE Racquet Up Detroit, located on the city’s westside, aims for each of its more than 100 students to graduate high school and enroll in college. So far, it has been successful. The nonprofit, which started in 2010, leads to post-secondary success because students can “demystify things” with new experiences in other regions of the country. Through Racquet Up, two Detroit students spent a month at the prestigious Phillips Exeter Academy in New Hampshire. As a result, they received full scholarships to high school at University Liggett School in Grosse Pointe Woods. And after competing in a squash game in Philadelphia in April, a Racquet Up student decided to venture out of state and enroll at Chatham University, a private college in Pittsburgh. Racquet Up boasts seven collegiate squash players.

“For many of our kids, our program is why they flew (on an airplane) for the first time or stayed away from home for the first time,” Aguirre said. Recognizing the positive impact the program has on youth, The Children’s Foundation provided $40,000 to support the construction of a café and the addition of a full-time squash and fitness coordinator. The coordinator mentors and teaches students who are suffering from obesity about nutrition. “Health and wellness are why we exist,” Aguirre said. “The grant kicked in during the heart of the pandemic, and The Foundation hung in with us during very trying

In addition to squash, the nonprofit offers yoga, Tai Chi, Safe Space talks and cooking demonstrations. Through the Detroit Food Academy, children have learned the importance of clean cooking and how to make chicken tenders and ranch-style dressing. “When we visited the Racquet Up space originally, we were so very impressed with the students studying and then getting ready to play squash. It was such a positive environment that we had to create a partnership. And now, we’re delighted to be

“For many of our kids, our program is why they flew (on an airplane) for the first time or stayed away from home for the first time.” Derek Aguirre, Executive Director, Racket Up

Executive INSIGHTS

NEW_EXEC INSIGHT_CHILDRENS FOUNDATION_.indd 3

times. They really do act like a partner and collaborator. They are here to help us do what we need to do.”

June 27, 2022 |3

6/20/22 4:14 PM

INSPIRING YOUTH

SPONSORED BY CHILDREN’S FOUNDATION

“Our coaches act as mentors for the kids, emphasize fun, build positive relationships and show consistency.” John Page, Program Director, First Tee – Greater Detroit

“We take a holistic approach. Our coaches act as mentors for the kids, emphasize fun, build positive relationships and show consistency. The golf really comes second,” said John Page, program director of First Tee – Greater Detroit. He said coaches have varying skills on and off the course and use those skills to capture kids’ interests.

Kids learn the very basics of golf to start. Photo courtesy First Tee

supporting their new space and a program helping youngsters with their personal nutrition and wellness,” said Burns.

BUILDING CORE VALUES Like Racquet Up employs squash, First Tee – Greater Detroit uses golf to build character, instill values and enhance the lives of its young participants. In July 2020, First Tee – Greater Detroit, one of the initial First Tee chapters in the country, became an affiliate of The Children’s Foundation. “First Tee has an outstanding history of providing meaningful programs that help empower kids through a lifetime of new challenges and personal growth. It is a great fit,” said Burns, who is also chair of the First Tee – Greater

Detroit board of directors. Independent research of the program found that after three years of participation, 73 percent of youth reported high assurance in the ability to succeed academically, and 82 percent felt confident about their social skills.

“For example, we have some participants that like to play chess, so we’ve connected our chess-playing coaches with those participants to practice chess,” Page said. “They can

also chat about it and make a connection.” He said it’s essential to establish positive relationships because they don’t know what the kids have going on at home or school. Their experience at First Tee may be the only positive experience they have all week.

DEVELOPING CAREERFORWARD SKILLS A multi-dimensional collaboration between the Boys and Girls Clubs of Southeastern Michigan, The

Kids as young as seven years old meet once a week at one of First Tee’s eight Metro Detroit locations. Coaches introduce the lesson by discussing a core concept or value such as respect, courtesy or judgment. They then tie that concept back to the students’ lives by asking open-ended questions, like “How do you show respect at school or home?” Then they learn the fundamentals of golf to spark curiosity about the game. The golf lessons and core concept discussions become more advanced as the kids develop.

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Golf lessons and discussions of core concepts and values become more advanced as First Tee kids develop. Photo courtesy First Tee

Executive INSIGHTS

6/20/22 4:14 PM

INSPIRING YOUTH

SPONSORED BY CHILDREN’S FOUNDATION our ability to do so much more together. This is now a shining example of our youth development focus area.” Wilson expects the Industry Club to employ nearly 200 Detroit youth each year. BGCSM is the first Boys and Girls Club in the United States to use the model. “Gaming, the fun element, is important when serving youth,” Wilson said. “We want them to be not just consumers but creators of the games too. Our youths are getting paid up to $13-an-hour to go deep into elements of the sports industry. They are being trained to be the owners.”

A partnership between The Children’s Foundation, Detroit Red Wings and Boys and Girls Clubs of Southeastern Michigan teaches kids the hockey and sports-related business skills. Photo courtesy Boys and Girls Clubs of Southeastern Michigan

Children’s Foundation and the Detroit Red Wings endows youth with skills that can set them up for successful futures. “The truth is the root causes of so many problems are poverty and the lack of economic opportunities,” said BGCSM President and CEO Shawn Wilson. BGCSM serves 21,000 youth and families in 11 locations. “When you empower youth to climb the economic ladder, you can tackle all those issues simultaneously.” In March 2022, the three partners unveiled their first

Esports Lounge at BGCSM’s Lloyd H. Diehl Club on Detroit’s West Side. The Esports program will use an Industry Club model to pay youth to learn about careers in sports, technology entrepreneurship and eGaming, including esports and video, online and computer games.

The Foundation and Red Wings invested $300,000 to reimagine an underutilized area of the club and build out the space, which includes a replicated Red Wings locker room. The grant money will also give BGCSM youth real-world experiences in building and monetizing brands and designing logos and merchandise. An Industry Club-developed esports league will launch this summer.

The program supports BGCSM’s mission to ensure that by the time kids reach age 18, they are ready to start careers and businesses and own a home. The endeavor also aligns with The Foundation’s efforts to help develop children’s sense of self-efficacy.

INSTILLING A SENSE OF PURPOSE Perseverance is just one of the essential traits Detroit Horse Power cultivates in at-risk youths. The program helps instill empathy, responsible risk-taking, confidence and self-control in a safe and enriching space. While growing up in Westchester County, New York, David Silver began riding horses at age 10. As a teacher at Burns Elementary and Middle School in Detroit, however, he realized most, if not all, of his students would never enjoy the privilege of horseback riding. Silver quit his teaching job in 2015 and founded Detroit Horse Power to help children succeed in school, their

“The Children’s Foundation is all about integrated partnerships,” Burns said. “This new partnership with the Boys and Girls Club of southeastern Michigan and the Detroit Red Wings is a wonderful example of

“When you empower youth to climb the economic ladder, you can tackle those issues (poverty and lack of economic opportunity) simultaneously.” Shawn Wilson, President and CEO, Boys and Girls Clubs of Southeastern Michigan

The Esports Lounge has “lockers” where the kids learn about careers in sports, technology entrepreneurship and eGaming. Photo courtesy BGCSM

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NEW_EXEC INSIGHT_CHILDRENS FOUNDATION_.indd 5

June 27, 2022 |5

6/21/22 9:26 AM

INSPIRING YOUTH careers and life. He does this by partnering each student with a horse to care for and ride and exposing the students to guest speakers from various equinerelated professions. “There is a joy in the saddle. It is confidence building. But all the aspects of taking responsibility for another living creature — cleaning stalls, grooming, caring for equipment — get our kids ready for life. Self-control is about being in tune with our own emotional state, pausing and reflecting before acting. Horses are very in tune with what you’re feeling and will mirror back at you,” Silver said. “The barn is a place of peace and belonging. It’s a place to test yourself and succeed. I have seen our students come out of their shells, become more

SPONSORED BY CHILDREN’S FOUNDATION confident and gregarious with a stronger sense of self and the mastery of a new skill.” Research shows the afterschool program has shown a 36 percent to 53 percent increase in each of its five socialemotional domains, Silver said. Detroit Horse Power’s undertaking fits well with The Children Foundation’s strategic efforts to back positive youth development programming. Silver said The Children’s Foundation fully invested in its two youth programs — the introductory Summer Horse Camp and a year-round afterschool program. “We’re delighted to be part of this wonderful organization. Detroit Horse Power is a unique program helping youngsters learn so many life skills while

Jaiden riding at a horse camp in Ortonville. Photo courtesy Detroit Horse Power

learning about horses and learning from them along the way,” Burns said. “We’re looking forward to the day in the near future when Detroit Horse Power has its own equestrian center in the heart of Detroit.”

Detroit Horse Power also strives to help youth graduate from high school and enter college or begin their careers. The afterschool program increased 80 percent, from 21 to 38 children this year, and Silver expects 100 students, many of

“There is a joy in the saddle. It is confidence building. But all the aspects of taking responsibility for another living creature — cleaning stalls, grooming, caring for equipment — get our kids ready for life.” David Silver, Executive Director, Detroit Horse Power

Brianna, a 12th grader, with her horse at Willowbrooke Farm in Plymouth. Photo courtesy Detroit Horse Power

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The nonprofit currently transports kids out of the city to partner barns for interaction with horses. But Silver has more extensive plans that are closer to home. The nonprofit secured a 14-acre demolished school site at Linwood and Fenkell avenues, where it plans to build an urban equestrian center by 2024.

them new, will participate in summer camp.

COPING WITH BIG EMOTIONS A Johns Hopkins study published in January 2022 reveals that “children facing relational and social risks are more likely to have mental,

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INSPIRING YOUTH

SPONSORED BY CHILDREN’S FOUNDATION

“With all the unfortunate things that occurred during the Covid pandemic, youngsters have suffered in many ways, but none is more concerning than their mental health. Combining youth development initiatives with physical activities is a true win-win situation.” Lawrence Burns

a weighted blanket, noisecanceling headphones, a sound machine, an essential oil diffuser and more.

A member uses sensory tools in the Cool Down Corner. Photo courtesy Boys & Girls Clubs of Grand Rapids

emotional, or behavioral health problems, but the negative impact of these problems on child resilience, self-regulation and school engagement can be offset by protective factors, such as strong caretakerchild connection and family resilience.” The Children’s Foundation actively supports organizations that “offset such negative impacts” through positive youth development. One such organization is the Boys & Girls Clubs of Grand Rapids. “The Children’s Foundation is now statewide, and our partnership with the Boys and Girls Club of Grand Rapids continues to grow,” Burns said. “This partnership allows kids space and time to reflect on issues impacting their mental well-being.” The Foundation provided two grants to help BGC Grand Rapids establish a dedicated

mental health program, train staff and hire a full-time social worker.

Master of Social Work interns from Grand Valley State University run each Clubs’ Cool Down Corner and use one-onone time with the children to help them build coping skills. The interns also connect with families to ensure their basic needs are met and that they can access necessary resources, such as school social workers. Recently, a 10-year-old club member with a history of explosive tantrums was feeling

Klose said success is when kids realize they need the corner without someone prompting them. “With all the unfortunate things that occurred during the Covid pandemic, youngsters have suffered in many ways, but none is more concerning than their mental health,” Burns said. “Combining youth development initiatives with physical activities is a true win-win situation.”

“Our kids are typically lowincome children with adverse childhood experiences that affect mental health,” said Director of Development Angie Stumpo. “We had a huge need for this program, and the grant from The Children’s Foundation got that ball rolling… which made it easier to get other big funding.” Kristin Klose is the recently hired director of social and emotional earning for BGC Grand Rapids. She said everyone has emotional reactions and needs the right tools to process them properly. One tool they use is the Cool Down Corner, where kids can go when they need to get their big emotions under control. It offers sensory and grounding tools, like fidget toys, stress balls, breathing cards, coloring books, paper with journaling prompts,

The Cool Down Corner provides sensory and grounding tools to help children get their big emotions under control. Photo courtesy BGC Grand Rapids

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overwhelmed in a gym setting. Recognizing this, he went to a corner to build with blocks until he was in control of his emotions.

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OU R FOCU S AR E AS

A Foundation on the move.

Pediatric Research

The Children’s Foundation is the largest funder dedicated solely to advancing the health and wellness of children and families in the state of Michigan and beyond. Youth Development

As the leader in health and wellness focused on children and families, our continued expansion into the state of Michigan and beyond allows us to make an even larger impact. The Foundation continues to partner with like-minded organizations to advance their individual efforts with grant support. The grants fund projects in community benefit, research and educational pillars.

Abuse & Neglect

In our second grant cycle for 2022, The Children’s Foundation added 17 new community organizations to its list of grantee partners. This is in addition to maintaining strong relationships with existing partners that have been important to the evolution and growth of The Foundation.

Injury Prevention

The Foundation has granted over $80 million since 2011 and currently has a total of 150 community partners across the state.

ROUND 2 NEW COM 022 M

Mental Health

ITY

Nutritional Wellness

YourChildrensFoundation.org

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