Crain's Detroit Business, Sept. 11, 2017 issue by Crain's Detroit Business

SEPTEMBER 11 - 17, 2017

Detroit Homecoming 2017

Flocking back to the D Now entering its fourth year, Detroit Homecoming has brought hundreds of successful Detroit natives back to the city to re-engage and invest in its rebound. This year, it opens up a new venue that’s a potent symbol of Detroit’s decline — the Michigan Central Depot. And the train station’s owner has a vision for what it might be again. See coverage beginning on Page 1 and 9

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COMMEMORATIVE ISSUE

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Arena special report << Flip this issue over for special coverage of the opening of Little Caesars Arena — how it came to be and what it could mean for a city on the rise. Page L1 Visit crainsdetroit.com/dualcover to order more copies of this issue and other keepsakes.

SEPTEMBER 11-17, 2017

SPECIAL REPORT:

A GOAL AND A REBOUND HOW LITTLE CAESARS ARENA CAME TO BE, WHAT ITS IMPACT WILL BE — AND WHAT IT COULD MEAN TO A CITY ON THE RISE.

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SEPTEMBER 11 - 17, 2017

Nikolai Vitti loves a challenge, and he’s got one Key Safety Systems poised to double in size. Page 3

A Q-and-A as DPS chief starts year. Page 28

Detroit Homecoming 2017 — More coverage starts on Page 9

Moroun’s vision for depot? Trains By Chad Livengood clivengood@crain.com

From mini mall to car museum, Matthew Moroun has heard every idea imaginable for what to do with the expansive concourse of the long-vacant Michigan Central Station train depot. But he’s starting to settle on an ambitious, if not audacious, concept that he calls “the oldest idea for the depot.” Trains. Like the kind that carried passengers to and from the Detroit train station for nearly 75 years before Amtrak ceased service in 1988 and the abandoned depot began a long decline that mirrored the city’s descent.

“It’s crazy, right?” Moroun said in an exclusive interview with Crain’s. “The idea that we’re most focused on now, the one that seems to make sense, is in the name of the building and it’s what it used to be used for.”

The son of billionaire transportation mogul Manuel “Matty” Moroun seems serious about making the depot a mass transit hub again as he embarks on a mission to save an iconic symbol of Detroit’s 20th

century rise and fall. Matthew Moroun is floating the idea to transportation planners and government officials ahead of the Michigan Central Station playing host Wednesday night to former Detroi-

ters at the kickoff dinner for the fourth annual Detroit Homecoming, produced by Crain’s Detroit Business. “If we decide to really push this ... it’s not to start out trying to solicit politicians and governments or whatever for money. It’s to Matthew see if I can get Moroun: Back to folks to embrace the future? it, that future vision,” Moroun told Crain’s. “We need to put the depot back on the map.” SEE STATION, PAGE 18

Amtrak ceased service from Michigan Central Station in 1988. The depot has been vacant since. CHAD LIVENGOOD

Banking

Talmer vets, now steering Chemical Bank, eye growth By Tom Henderson thenderson@crain.com

Two former Talmer Bancorp executives are running the bank that bought theirs a year ago. The announcement on June 21 that David Ramaker, the longtime president and CEO of both Chemical Financial and Chemical Bank, would be replaced by David Provost, former president and CEO of Troy-based Talmer Bancorp, and Thomas Shafer, former president of

Talmer Bank & Trust and COO of its holding company, shocked both the Midland business community and industry watchers and insiders. Was it a board-room coup or a sudden decision to retire? Either way, the leadership change paves the way for Midland-based Chemical Financial Corp., which bought Talmer Bancorp last August in a $1.7 billion deal, to aggressively pursue acquisitions in large urban markets that for-

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A new arena, and what it means for Detroit. Pages L1-L24

“There will be a lot of things on the table for Chemical over the next few years. It’s a big bank, now, and will only get bigger.” Terry McEvoy, an analyst with Stephens Inc.

mer Chemical management tended to avoid, in places like Indiana and Ohio, according to industry experts. Analysts expect acquisitions to happen quickly once federal regulators certify the bank has passed its current mandatory stress test for financial health. That test should be routine and could happen later this year or early next. “They’ll find strategic partners at the right price. They’ll be looking in

big markets and small markets, in left field and right field,” said Terry McEvoy, an analyst with Little Rock, Ark.based Stephens Inc. “There will be a lot of things on the table for Chemical over the next few years. It’s a big bank, now, and will only get bigger.” “... But it won’t be a deal just to get a deal done. These guys are sharp operators,” McEvoy said. “It’ll be a deal that drives value and makes sense.” SEE BANK, PAGE 20

Homecoming focuses on luring jobs Pages 9-20 Visit crainsdetroit.com/dualcover to order more copies of this issue and other keepsakes. Details on Page L1.

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MICHIGAN BRIEFS

INSIDE

From staff and wire reports. Find the full stories at crainsdetroit.com

CALENDAR CLASSIFIEDS

Audit: MEGA transparency limited

State auditors knocked the Michigan Strategic Fund for what it called a lack of consistency in the way it reports annual obligations under a now-defunct tax credit program. Part of the problem, they said, is that state law allows companies to shield the amount of tax credits they receive under the former Michigan Economic Growth Authority, or MEGA, program from public disclosure. That makes it difficult to gain a clear picture of the state’s obligation, they contend. In a report, Michigan Auditor General Doug Ringler questioned whether the state should be allowed to grant a corporation confidentiality from releasing tax credit information asking, notably, whether public knowledge of the amount of tax credits a company received undermines said company’s competitive edge. Lack of transparency is a common complaint about economic development incentives; Michigan is not an exception. The MEGA program has been a thorn in the state’s side for years, since it was expanded under former Gov. Jennifer Granholm’s tenure to include tax credits for job retention, not just job creation.

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DEALS & DETAILS

Michigan’s obligation to companies under MEGA swelled to more than $9 billion in 2015 and busted holes in the state budget, leading to midyear spending cuts in part because more credits were redeemed than expected. Ringler’s audit noted 732 MEGA credits were approved between April 1995 and December 2011, worth a total of $14.2 billion. Some of the largest MEGA deals went to the Detroit 3 automakers in an attempt to save jobs during the recession. In fact, it was a Detroit automaker’s confidentiality deal that raised the question for Ringler. In 2015, the strategic fund and the Michigan Economic Development Corp. renegotiated MEGA agreements with Ford Motor Co., FCA US LLC and General Motors Co. to rein in ballooning liabilities. Dearborn-based Ford agreed to cap its remaining MEGA credit value to $2.3 billion, while FCA agreed to a $1.7 billion cap. Both automakers agreed to invest billions of dollars in the state in return. GM agreed to spend $1 billion in the state by 2029 and cap the value of its outstanding MEGA credits, but unlike its competitors, neither the state nor GM disclosed the value of the cap. The strategic fund granted GM’s confidentiality request because of a provision in state statute that says

credits for all participants because the reporting of estimated credits for the remaining participants would allow the readers of this report to determine the agreed-upon confidential amount.”

Agencies maintain Michigan bond ratings

GENERAL MOTORS

GM agreed to spend $1 billion in the state by 2029 and cap the value of its outstanding MEGA credits, but unlike its competitors, neither the state nor GM disclosed the value of the cap.

financial or proprietary information the company and the strategic fund board agree is confidential will not be subject to state public records laws, Ringler wrote in his audit report. That information is defined as “information that if released might cause the applicant significant competitive harm.” Ringler wrote that the single confidentiality agreement with GM is binding on the auditor’s office and, as such, “limited our ability to fully report information about MEGA tax

Credit ratings agencies Standard & Poor’s, Moody’s Investors Service and Fitch Ratings maintained their rating of Michigan’s debt obligations as the state prepares to sell close to $120 million in bonds to fund environmental programs. The state’s 2017 general obligation bonds will be sold Sept. 12, Michigan Department of Treasury spokesman Ron Leix said last week. The $119.6 million offering includes a tax-exempt series worth $79 million, and a federally taxable series worth $40.6 million. They will be used to pay for programs related to the environment, natural resources and water quality that are managed by the Michigan Department of Environmental Quality, according to the treasury department. Fitch upheld its AA rating while Moody’s affirmed its Aa1 rating; both considered the state’s fiscal outlook to be “stable.” Standard & Poor’s maintained its AA- rating on the forthcoming bond issue, but improved the state’s fiscal

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OPINION PEOPLE

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RUMBLINGS

WEEK ON THE WEB

outlook from “stable” to “positive.” The ratings agency cited growth in the state’s economy, a strong cash position, sound budget practices and adequate reserves as evidence for the improvement. “I am pleased Standard & Poor’s has acknowledged the hard work and effort taken to improve the state’s financial position and economy in recent years,” state Treasurer Nick Khouri said in a statement. Yet the agencies also noted several factors that could affect their future outlook on the state’s fiscal health, including long-term pension and retirement obligations, fiscal stress in local governments and an infrastructure funding gap.

CORRECTION A Deals & Details item about AEL Span in the Sept. 4 issue should have said Cummins Inc. is located in Columbus, Ind.

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Mergers & Acquisitions

TRW name to fade as ZF completes integration By Dustin Walsh dwalsh@crain.com

Signs will come down from their perch atop several buildings across Southeast Michigan, and around the world, this week. Three letters, TRW, with nearly 60 years of recognition in the region will be no more. German supplier ZF Friedrichshafen AG plans to end use of the TRW name after the completing the integration process of its $12.4 billion acquisition of Livonia-based TRW Automotive Inc. in May 2015. ZF maintained the name of the safety systems supplier as ZF TRW as it worked through integration, which is now complete. ZF is expected to make the an-

nouncement at The International Motor Show in Frankfurt, Germany, this week. “When we started this (integration) two years ago, we wanted to make sure we keep the value of the TRW brand, particularly in the U.S. because it was a stronger brand than ZF at the time,” said Franz Kleiner, CEO of ZF’s active and passive safety division, formerly known as ZF TRW. “Now we believe the public, and employees, understand and identify with this organization as a combined company under ZF.” ZF North America Inc.’s headquarters in Livonia, which it moved last year after acquiring TRW, will be the first to remove TRW from its signage.

Its active safety operations in Farmington Hills will follow this week and the rest will be completed in the coming months, said Bryan Johnson, senior manager of corporate communications at ZF North America. The TRW name, however, will live on in the aftermarket, where brand recognition is key, Kleiner said. “We never introduced the double ZF TRW logo in the aftermarket,” Kleiner said. “In the broad consumer area, there is a fear that removing the TRW name would be negative. For the garages and general buyers, they will still be able to find brake pads under the TRW brands and transmissions under ZF.” SEE ZF, PAGE 8

COURTESY OF ZF

German supplier ZF Friedrichshafen AG plans to end use of the TRW name after its $12.4 billion acquisition of Livonia-based TRW Automotive Inc.

Automotive

Commerce

Ford had to wait for Luo to finish his Takata deal By David Sedgwick Crain News Service

BLOOMBERG

Amazon.com Inc. said last week that it is searching for a second North American headquarters, causing cities across the country, including Detroit, to start crafting sales pitches.

Amazon checklist: An uphill battle By Kirk Pinho kpinho@crain.com

Amazon.com Inc.'s bombshell last week that it is searching for a second North American headquarters caused cities across the country, including Detroit and others, to start crafting sales pitches. The online retail behemoth laid out a simple list of requirements to determine where founder and CEO Jeff Bezos and his team decide to place what they say are up to 50,000 employees with an average annual compensation of $100,000 or more. Courting an investment like that to Detroit will be an uphill battle. A handful of national publications, such as Bloomberg and Axios, have cast Detroit as being a contender. Perhaps the biggest obstacle: The area’s history of city vs. suburbs feuds on

MUST READS OF THE WEEK

everything from regional taxes to water and sewers to mass transit. “It can't be this city vs. that city,” said Luke Bonner, CEO of Ann Arbor-based economic incentive, real estate and economic development consulting company Bonner Advisory Group LLC. “This is one of the biggest projects around. They were saying that about Foxconn. There was the Boeing 777X project. This trumps both of them.” Here’s how the region stacks up to Amazon’s key criteria:

Population That’s an easy one. Amazon wants a metropolitan area with more than 1 million people. Detroit and its surrounding counties have more than 4 million.

Talent

This is iffy. The region’s unemployment rate is currently 4.4 percent, according to the Bureau of Labor Statistics, meaning that finding the workers Amazon wants could prove a challenge. But that’s a challenge in most of the country. “Are they going to hire 50,000 people in one year? Probably not,” Bonner said. On education, the Detroit area scores as below average. In addition, 29.5 percent of local residents have a bachelor’s degree or higher, compared with 30.6 percent nationally. The local core of universities could help make up some of that deficit. Research institutions like University SEE AMAZON, PAGE 7

“It can’t be this city vs. that city. This is one of the biggest projects around. They were saying that about Foxconn. There was the Boeing 777X project. This trumps both of them.” Luke Bonner

While Key Safety Systems has lost CEO Jason Luo to Ford Motor Co., Luo has left the Sterling Heightsbased airbag supplier poised to double its size. Key Safety expects to complete the purchase this month of Japan’s Takata Corp. for $1.59 billion — a deal that will transform Key Safety into the world’s No. 2 airJason Luo: Leaves bag maker behind Autoliv Inc. Key Safety On June 26, Key Systems. Safety announced a deal to acquire Takata’s assets. On Aug. 23, Ford announced that Luo will become CEO of Ford China. During an interview late last month, Luo, 51, said most major issues have been resolved in the Takata acquisition, and that Key Safety has the support of Takata’s 15 automotive customers. The company expects to have a purchase agreement soon with the deal closing early next year, he said. “The team resolved remaining issues with customers and Takata.” The purchase agreement will tie up several loose threads at Key Safety as Luo joins Ford China. Luo, who has managed Key Safety for a decade and steered the supplier through the 2008-09 economic crisis, said a Ford recruiter approached him in the summer of 2016. SEE LUO, PAGE 8

Question and answer with Detroit superintendent

The fourth industrial revolution underway

Nikolai Vitti says he loves a challenge; he has one in the Detroit public schools. Page 28

Stacy Brown-Philpot of TaskRabbit says more and more people will take on second jobs in a gig economy . Page 4

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Q&A: STACY BROWN-PHILPOT

Can the gig economy transform Detroit? By Dustin Walsh

TaskRabbit transform to meet consumers’ changing needs?

dwalsh@crain.com

Real-estate developers building a platform to contribute to Detroit’s resurgence. We are committed to: Working throughout the city from core to neighborhoods because we can’t bring up one without the other. Connecting to communities to plan our developments in thoughtful and relevant ways. Developing mixed income and market rate communities that are mindful of existing residents and retailers. Excellence in design and construction from rehab to new construction. Placemaking activities that welcome all residents and visitors. Making smart investments with benefits beyond our bottom-line. Raising the next generation of developers in Detroit.

Detroit is known for its do-it-yourself attitude. But changing tastes and busy schedules have created the rise of the sharing or “gig” economy, where technology connects individuals with work with those needing work. And native Detroiter Stacy Brown-Philpot leads one of the country’s fastest-growing services, TaskRabbit. Economic anxiety and sluggish wage growth has forced more workers to seek flexible alternative second incomes. Roughly 7.6 million in the U.S. held multiple jobs in July, up 2 percent from a year earlier, according to the U.S. Labor Department. Brown-Philpot, who grew up at Six Mile and Southfield roads in Detroit, took over the top spot at the San Francisco company in March this year, after serving as its COO and previously as the head of several Google departments. As CEO, she quickly made changes. She led the launch of a mobile app to increase access to tasks needing taskers and prioritized home services for clients. The results have been astonishing. TaskRabbit says it has quadrupled annual revenue. Brown-Philpot is scheduled to offer a keynote at this week’s Detroit Homecoming IV, presented by Crain’s Detroit Business. Her topic? Jobs for Detroiters. Crain’s senior reporter Dustin Walsh interviewed Brown-Philpot on the future of the gig economy and its role in Detroit. Did growing up in Detroit influence your business acumen?

theplatform.city info@theplatform.city

Growing up in Detroit made me keenly aware to never forget where I came from and that sometimes the people of my city were forgotten by the policymakers and the business executives in other parts of the country. How would you describe TaskRabbit’s status compared to other gig services?

B U I L D I N G N E W H O P E FO R T H E FU T U R E O F CA N C E R CA R E .

I like to refer to TaskRabbit as a mature startup which has served as a pioneer in the sharing economy. We’ve been around for nine years, which is ancient in this industry, and we’ve been very careful about growing in a strategic manner over a period of time, as opposed to just growing for the sake of it. Our revenue has gone up by 100 percent every year for each of the past three years. As for profitability, TaskRabbit is very close to overall profitability, which really distinguishes (us) from others within the sharing economy. Why move from Google to TaskRabbit?

ALL FOR YOU The future is here. Now. At the Henry Ford Cancer Institute we’re leading the way in precision medicine, crafting cancer treatments to the DNA of each patient. And we’re building on our achievements. With the construction of the Brigitte Harris Cancer Pavilion, the world will be turning to Detroit for the next generation of cancer care. See all we’re doing. HenryFord.com/YourCancerExperts

I fell in love with TaskRabbit’s mission to revolutionize everyday work and create everyday work for everyday people like those I grew up with. I joined TaskRabbit first and foremost because the company had a solid foundation based upon strong values. To me, that’s the most important aspect to a company. What is the role of a freelance gig site like TaskRabbit in the future of Detroit?

The sharing economy is going to become more and more common

“I think more and more people will take on jobs in addition to their full-time employment in order to provide supplemental income for themselves and their families.” Stacy Brown-Philpot

throughout the country and take on a greater sense of normalcy, including in Detroit. I think more and more people will take on jobs in addition to their full-time employment in order to provide supplemental income for themselves and their families. That’s going to be as true in Detroit as elsewhere in the country. What draws Detroiters in search of work to your site?

A lot of people don’t know this, but the average tasker in Detroit and Ann Arbor earns roughly $23.50 an hour, which is more than three times the average federal minimum wage per hour. So, I think this is an example of how people will become more and more attracted to being part of the sharing economy. The gig economy has created interest among economists, some saying it’s bad for the economy because the jobs are largely low-paid and short-term. How do you respond to those claims?

There is no doubt that we are in the midst of a fourth industrial revolution. And it is important for everyone, from policymakers to business executives such as myself, to make sure that opportunities are possible for a broader aspect of society. I can’t speak for every company in this industry, but what I can say is that we pay about five times the federal minimum wage and an average hourly rate of $35 an hour nationally. How will the gig economy and

We will see more and more partnerships between TaskRabbit and wellknown companies along the lines of our current one with IKEA, for example. Our platform will become even more integrated into the customer experience for our partners, making the use of our services as seamless as possible. Our business model will continue to focus on the increase of connectivity of devices within one’s home. In the not so distant future, one can imagine the HVAC placing a call to TaskRabbit to replace the filter without the homeowner even needing to think about it. Some might think that as devices get more and more connected with each other in the fourth industrial revolution, that more and more people will end up just keeping their heads down and stare at the phones even more than they do now. But the irony is the opposite could be true: as devices get more and more connected, people will become more connected to each other because you can actually have time for the things that really matter for families. Let’s assume the economy takes off. Is TaskRabbit at risk of losing gig workers to full-time employment?

We think there will always be a marketplace full of those who want to participate in the sharing economy, whether they are young professionals who need to earn supplemental income in order to pay off their student loans or a new father or mother who wants to serve as tasker in order to put away extra money for their new baby or those who have retired and don’t need the money but are quite passionate about providing a valued service for a member of the community. All of these examples, by the way, represent real people who serve as taskers for TaskRabbit. What do you envision for the future of Detroit?

In 10 years, my aspiration is that Detroit will be thriving and living up to its reputation of hardworking people who create and build important things for the world. There are already beginnings where this is true in the downtown area, but there are still plenty of neighborhoods that are desolate. I hope to see the revitalization of communities happen through entrepreneurship and investment. I want Detroit to be a destination where millennials want to and can build a meaningful life for their families. Technological innovation can happen outside of Silicon Valley, and I see no reason why it shouldn’t happen in Detroit.

BANKRUPTCIES The following business filed for protection in U.S. Bankruptcy Court in Detroit last week. Under Chapter 11, a company files for reorganization. J Packard Square LLC, 1900 Telegraph Road, Bloomfield Hills, voluntary Chapter 11. Assets and liabilities not available.

COME

PLAY

For those returning for the Detroit Homecoming, come have some fun at the new Beacon Park. It has an open lawn, daily music, food trucks and more than 600 free events and activities that bring the community together. It’s part of the DTE Energy Foundation’s ongoing efforts to support Detroit’s revitalization. So come play at the corner of Cass and Grand River.

Go to beaconparkdetroit.com for more information.

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OPINION

COMMENTARY

You asked ... and we’re listening W e asked for your help. You gave it. Now we owe you an update. In March, shortly after my start as editor and publisher of Crain’s Detroit Business, we launched our Inner Circle, hoping to enlist a hundred or so of you in a special project. This was my pitch: “We are collecting advice, opinions, and even constructive criticism from a self-selected group of advisers. I’d like you to be one of them. Please join our Inner Circle — an in-person and online community dedicated to making Crain’s the best, most engaging media company in Michigan.” “We’re not changing what makes Crain’s distinctive and important, but with your help, we will make Crain’s essential.” More than 600 of you answered the call. We conducted five online surveys with the full group and invited nearly 50 Inner Circle members to breakfast conversations. We asked about our newsroom. What beats should we cover? What stories should we write? How can we deliver news and information that helps your business succeed? Apart from journalism and journalists, we asked whether Crain’s other expert storytellers could help solve your business problems — working directly for you, not unlike a marketing services consultant. Do you need help with corporate branding? Personal branding? Tailored research? Custom publishing? Native advertising? Speech writing? We listened. In the first Inner Circle breakfast, one of you bemoaned the loss of the “People” column. Two weeks later, somebody else complained that the “People on the Move” replacement was “a pale imitation” of the traditional feature. A month after that, over scrambled eggs and bacon, a reader bluntly told me, “Bring the damn thing back.” You got it. Starting this week, we are accepting submissions for a new “People” column, which will look like the old “People,” and which will begin running in next week’s issue. A little history: For years, Crain’s ran a column called “People,” which featured brief announcements of company hires and promotions, a few dozen each week. You used it to keep track of who’s who at companies across a range of industries. A few years ago, we switched to writing only about C-suite level hires, mostly CEOs, a few per week. In addition, we offered companies the opportunity to advertise their new hires in another, paid column, called “People on the Move.” The combination of our paid listings and too-few stories on high-level appointments didn’t meet your needs. So we’ll return to running a “People” column with many more

RON FOURNIER Publisher and Editor

people in it. (Go to crainsdetroit. com/peoplesubmit to send us your People news.) At the same time, we’ll continue to offer “People on the Move” as a paid vehicle for companies that want to control their message and more fully tout their new hires or promotions. You’ve also asked us to help save you time. We’re doing so by adding a new feature called “Need to Know,” which will summarize each story in a few bullets, PowerPoint-style, so you’ll be able to get an executive summary. They’ll start running online next week and debut in print in next week’s issue. Actually, we first got the “Need to Know” idea from our younger readers who, through Inner Circle surveys and events focused on our influential millennial audience, said they value news and information in short bursts. Turns out, older readers want that, too. There’s more to come from this project including: J An overhaul of our newsletters to inject more insights and analysis from our top reporters. Less aggregation and more news you can use. J Greater access to our reporters and editors. J More opportunities for you to network with one another. J A fundamental change in our business model. More on these later in the year. The bottom-line idea is to make Crain’s less of a transactional experience — you pay for your subscription and we write our news — and more of a relationship. Our reporters won’t flinch from the core mission: They will seek the truth and report it, no fear or favor. They will make you uncomfortable at times, even angry. But, like never before, the whole of Crain’s Detroit Business is going to listen to you. Please join the Inner Circle at crainsdetroit.com/innercircle. It’s free. Your advice is priceless. Ron Fournier is publisher and editor of Crain’s Detroit Business. Catch his take on business at 6:10 a.m. Mondays on the Paul W. Smith show on WJR AM 760.

Welcome home, Detroiters

t doesn’t seem that long ago, only about five years or so, when I had lunch with a long-time friend, Jim Hayes, who, like a lot of folks, had decided to move back to Detroit. Detroit may not have been his actual hometown, but after working here 10 years, he had some roots. Jim had been head of Sports Illustrated in Detroit from 1967-77, and he left Detroit to climb the ranks of Time Inc. to eventually become publisher of Fortune magazine. When he retired from that job, he was not ready to quit working, so he took on running the national Junior Achievement organization for several years. After moving back to Detroit in 2013, he had an an idea, and he wanted Crain’s Detroit Business to run with it: So many folks had been born and raised in Detroit and left town to make their fame and fortune somewhere else. Let’s invite back a couple of hundred Detroit “expatriates” and show them what has become of their hometown. Perhaps they might be interested in investing

KEITH CRAIN Editor-in-chief

in Detroit. I liked the idea, and after lunch I took Jim to meet the group publisher of Crain’s, Mary Kramer. I told Mary what we were going to do, and she was as excited about the project as Jim and I were. That was the beginning of Detroit Homecoming. We are about to have our fourth Detroit Homecoming, and Jim Hayes and Mary Kramer are still partners in this exciting adventure. It is an invitation-only event for a couple of hundred expats who we welcome back to Detroit to discover how

the city has improved and changed and present ideas for investment. Over the past few years we’ve seen the dollars plowed back into our city. It is an exciting few days for expats who might not have seen their city for many years. This year, through the generosity of Matty Moroun, we’ll have our kickoff dinner at the Detroit railroad station, with meetings being held during the week at a newly created national racing shop in Corktown. We hope it will be an exciting few days to this year’s guests, as in the past. We are lucky enough to have the support of corporations and foundations in our city who realize just how important and effective Detroit Homecoming has been for our city. There is no doubt that Detroit is rebounding after a half-century. We at Crain’s Detroit Business and Detroit Homecoming are greatly indebted to Jim Hayes and Mary Kramer. And I am very proud of them both.

LETTERS

Employers should offer to pay fees Thank you for publishing Chad Livengood’s articles and commentary exploring the negative impacts of “driver responsibility fees” and resolution options (Unpaid fines strand drivers, crimp region’s workforce, Aug. 7). I was a Michigan Senate legislative assistant in 2003 when the fees were passed into law and thought they were a bad idea at the time; my opinion hasn’t changed.

However, I don’t think that wholesale fine forgiveness, similar to a parking ticket amnesty period, is the right answer, either. That would encourage people to delay paying off future fines in the hope that a legal revision would eliminate them. Instead, I would involve the potential employers that Chad talks about in his commentary. At a time when many companies (including my own employer) are offering $1,000-2,000 employee referral bonuses, paying the fine for a desirable but unavailable potential employee seems like a justifiable cost of doing business.

Alternatively, an employer could formalize an agreement with a recruit where they pay the employee’s fine and then recover the cost through future payroll deductions. Those options are available today and are not dependent on a slow and fickle Legislature. Steve Williams Brighton Crain’s Detroit Business will consider for publication all signed letters to the editor that do not defame individuals or organizations. Letters may be edited for length and clarity. Email: rfournier@crain.com

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Arn Tellem: MLS expansion team could play by 2020 in Detroit By Bill Shea bshea@crain.com

BLOOMBERG

Several criteria will be used to determine where founder and CEO Jeff Bezos and his team decide to place what they say are up to 50,000 employees with an average annual compensation of $100,000 or more in what would be, over 15-17 years, a complex with about 8 million square feet.

FROM PAGE 3

of Michigan, Michigan State University and Wayne State University, would be fertile ground for Amazon recruiting.

Incentives This is a whole other nut to crack. Amazon, perhaps inspired by the bidding war for Foxconn’s mammoth plant, is looking for incentives to open what it is dubbing its HQ2. And Michigan’s available lures may be lacking. Yes, new legislation like the socalled Good Jobs bill and the transformational brownfield tax incen-

Amazon, perhaps inspired by the bidding war for Foxconn’s mammoth plant, is looking for incentives to open what it is dubbing its HQ2. And Michigan’s available lures may be lacking. tives for new development are helpful, but likely won’t push Michigan across the finish line. Other states will almost certain pass new laws to lure in something the scale of HQ2. “There may have to be a new incentive created or even bonds issued to snag that type of project,” Bonner said. For example, Wisconsin granted $3 billion in incentives earlier this year for a $10 billion, 13,000-worker plant for Taiwan-based Foxconn Technology Group. The national average economic development incentive package is $2,457 per job, according to the Upjohn Institute, Crain’s reported in July. At that rate and Amazon’s projected employment level, that would be $122.85 million. Yet Wisconsin offered a whopping $15,385 per worker. Michigan has no incentives in that ballpark.

Transit The region’s fractured transit system is definitely a strike against it. The QLine streetcar system along Woodward Avenue downtown isn’t robust enough, and the Detroit Department of Transportation and Suburban Mobility Authority on Regional Transportation bus systems are not effective, Bonner said. All that, and the Regional Transit Authority ballot issue last year failed.

International airport Yep, we’ve got one of those with the Detroit Metropolitan Airport. Also a plus: Detroit and Seattle are both Delta Airlines hubs, so there are plenty of direct flight connections.

ROSSETTI ASSOCIATES INC.

The interior bowl of the proposed soccer stadium in downtown Detroit; it is being pitched for the site of the half-built Wayne County Jail on Gratiot Avenue.

site. Gilbert and Gores have made progress in securing their preferred location — the unfinished downtown jail site at Gratiot and I-375 — when Wayne County announced on July 31 that it intends to work with them on a deal instead of finishing the justice facility. “Detroit just got one step closer to having access to the jail site,” Garber said. “That got a lot of energy and attention in Detroit.” Gilbert and Gores unveiled a $1 billion plan in April 2016 to build a 22,000- to 25,000-seat soccer-specific stadium on the jail site, and the project would include towers for residential, retail and office use. MLS has told Crain’s that it has monitored the success of high-profile soccer events in the Detroit market, including the International Champions Cup match that drew

Real estate Where would they find the space? Amazon says the first phase of its project would be 500,000 to 1 million square feet. Contingent upon completion, downtown Detroit real estate and mortgage baron Dan Gilbert, who has assembled an internal team to woo Amazon, has no less than 1.1 million square feet of new office space planned between his projects on the former J.L. Hudson’s department store site and two blocks immediately east of his Quicken Loans Inc. headquarters downtown. That figure does not include planned office components on 10 acres of land immediately east of the Renaissance Center owned by General Motors, as well as a planned office tower on the site of the half-built Wayne County Consolidated Jail. In addition, Amazon says it is willing to consider sites of at least 100 acres that are proximate, but not necessarily contiguous. Sites like that exist in places like Auburn Hills, South Lyon, Pontiac, near Detroit Metropolitan Airport and around Ann Arbor and elsewhere. Assembling land like that in or around downtown would prove difficult. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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If Major League Soccer wants a team in Detroit, the group seeking an expansion club for the city says it will be ready to play downtown by 2020. That’s according to Arn Tellem, who is handling the bid process for Tom Gores and Dan Gilbert, the billionaire pro basketball owners jointly seeking a Detroit MLS team. MLS has said it intends to announce the next two expansion cities after its owners meet in early December. Two more expansion markets will be announced at some point after that. Tellem told Crain's on Friday that the Detroit bid will make its pitch to league officials in October with the intention of being one of the two markets awarded a club that would begin play in 2020. “Our hope is to be prepared so that when MLS makes its decision, we’re one of the finalists,” he said. Tellem said MLS is especially interested in the Detroit market. “My understanding is that we’re one of the cities they’re focusing on,” he said. That echoes what MLS Commissioner Don Garber said in August, when he mentioned Detroit as one of four cities that have advanced their efforts over the summer to secure an expansion team. The others he singled out were Cincinnati, Sacramento and Nashville. A dozen cities submitted expansion bids. The biggest question mark for Detroit’s bid is the proposed stadium

36,000 fans in July at Comerica Park, crowds of more than 100,000 at Michigan Stadium for past ICC matches, and the crowds of 5,000plus for semi-pro Detroit City FC in Hamtramck. The other cities with formal expansion bids, which had to be submitted by Jan. 31, are St. Louis; Tampa Bay/St. Petersburg, Fla.; San Antonio; Raleigh, N.C.; Charlotte, N.C.; Indianapolis; Phoenix, Ariz.; and San Diego. Ultimately, MLS will have 28 teams. Los Angeles FC begins play next year as the 23rd club and the unnamed Miami team launches for the 2019 season. After that, the next two expansion teams are expected to begin play in 2020. It’s unclear when the final two expansion clubs would formally launch. The expansion teams awarded in December will pay $150 million each to join the league. A fee for the final two clubs hasn’t been formally announced. New MLS owners aren’t buying franchises. Instead, MLS is a single-entity business, meaning all teams are owned by the league and all players are its employees rather than employed by the club. MLS pays the players. Team “owners” pay an investment fee to MLS for the right to operate a team in a geographic area. They become league shareholders rather than franchise owners in a league that has publicly acknowledged it remains unprofitable. Teams keep their own books and budgets.

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Luo accepted the offer early this year, but told Ford he wanted to complete the Takata deal before leaving Key Safety. He had expected to announce the Takata acquisition in March, but the Japanese airbag maker’s financial liabilities complicated negotiations. In July, Luo tendered his resignation to Key Safety’s board of directors. The new job allows Luo, a Chinese-born engineer who has lived in the United States for three decades, to return to Shanghai to be near his aging parents. Key Safety has hired an outside firm to help recruit a new CEO. In the meantime, Key Safety Director Yuxin Tang will run the company with help from a transition committee of Key Safety executives. As announced, Key Safety plans to acquire Takata’s seat belt factories, R&D and work force — but not its legal liabilities or the plants that produce the failure-prone inflators that led to the largest automotive recall in history. The company will establish an Asian headquarters in Tokyo and it will keep all manufacturing plants in Japan open. Takata’s plant managers and regional executives will be offered positions, but Takata will not retain its global headquarters.

Loose threads There is some unfinished business for Luo’s successor. Key Safety must name an international production chief — a critical assignment, given Takata’s costly quality lapses. Key Safety’s new chief also must figure out whether to boost production to replace Takata’s defective airbag inflators. Takata’s ammonium nitrate inflators sometimes explode when activated, spewing metal shards into the passenger cabin, resulting in the recall. They have been linked to at least 18 deaths worldwide. Eventually, the recall is expected to cover 125 million inflators.

FROM PAGE 3

ZF and TRW generate roughly $2 billion in aftermarket sales combined, Kleiner said. TRW draws its history to 1901 when it was founded as Cleveland Screw Cap Co. in Ohio. Within a few years, the company would begin manufacturing automotive engine valves. Several decades and acquisitions later, the company entered the aerospace industry as Thompson Products before merging with Ramo-Wooldridge 1958 to form Thompson Ramo Wooldridge Inc., colloquially known as TRW. The company eventually became TRW Inc. in 1965, based in Ohio. By the late 1980s, TRW employed more than 120,000 in 25 countries. Defense contractor Northrop Grumman acquired TRW in 2002 for $7.8 billion, selling TRW’s automotive assets, largely operated in Michigan, to private equity firm Blackstone Group for $4.13 billion later that year. TRW Automotive Inc. went public in February of 2004.

JACOB LEWKOW

CEO Jason Luo and Joseph Perkins, senior vice president and CFO of Key Safety Systems, which spent nearly a year negotiating to buy Takata.

Luo said Key Safety’s acquisition of Takata won’t affect Takata’s timetable for replacing the inflators. In July, Reuters reported that Takata will wind down its airbag business in 2020 after making replacement inflators for the recall. Key Safety does not make replacement inflators for Takata customers, Luo said. Key Safety is moving ahead with plans to double inflator production to 60 million a year, but that output is for its own customers. The next CEO must decide whether to start producing replacements, Luo said. Another loose thread involves Takata’s financial liabilities. In January, the company agreed to pay $975 million compensation to automakers and consumers, but the company still faces numerous liability lawsuits.

Active safety While those lawsuits could complicate life, they don’t represent a financial threat to Key Safety. Takata’s U.S. subsidiary sought Chapter 11 bankruptcy protection in June, and Key Safety will not inherit Takata’s liabilities. That leaves Key Safety free to focus on its two global ZF, in search of new technology, started the acquisition process for TRW in 2014, making it the world’s second-largest component supplier, with 2016 sales of $37.89 billion, behind Robert Bosch AG. ZF incorporated TRW into its active and passive safety technology division, now the springboard for its transformation. Since closing the deal, ZF has been on an acquisition binge to add to its new unit’s capabilities. Epitomizing the new mission is Zukunft Ventures, a ZF subsidiary formed last year to scout new technologies and quickly link ZF to them without burying their developers’ innovative and entrepreneurial energy in corporate bureaucracy. Translated into English, Zukunft means “future.” The latest Zukunft endeavor was ZF’s acquisition in March of a 45 percent stake in Astyx Communication & Sensors GmbH, which develops and produces ultra-high-frequency radar sensors and modules. The Astyx deal expands ZF’s capabilities in environmental and object recognition necessary for autonomous driving. The acquisition follows moves last

rivals: Autoliv Inc. and ZF Friedrichshafen. Once the acquisition is complete, Key Safety will have more than 60,000 global employees plus $7 billion in revenue. Only two airbag makers, Autoliv and ZF, can rival Key Safety’s size. On the other hand, those two companies have invested heavily in active safety — that is, collision avoidance and self-driving vehicles. Key Safety is a newcomer to the fast-growing market. The company has developed 360-degree camera vision for vehicles, and it plans to market Takata’s in-cabin driver monitoring system. But the company won’t try to match its rivals’ portfolios of cameras, radar, lidar, control units and software, Luo said. Instead, it will focus on what it does best: protecting passengers from injury. If a vehicle’s sensors determine that an accident is unavoidable, for example, the vehicle could activate airbags before the impact. That would be especially useful for side-impact collisions that can’t be dampened by a vehicle’s crush zone, Luo said. “For the future, we will focus on anything that is safety-related,” he said. “Once you know an accident is going to happen, you have more time to react. So the [airbags and seat belts] will perform much, much better.” Luo said Key Safety also may get help from its corporate parent, Chinese electronics giant Ningbo Joyson Electronic Corp. Ningbo Joyson also owns a stake in Preh GmbH, a German supplier of sensors and electronic control units. Preh’s German r&d center could prove useful in future development work. Now that the Takata deal is wrapping up, Luo said he hasn’t scheduled any time off to clear his head before joining Ford. He had planned to fly to Shanghai Saturday, Sept. 2, and start work the next week. Said Luo: “I’ll store my luggage and jump in.” This story originally appeared in Crain's sister publication Automotive News. year to snap up 40 percent stakes in Ibeo Automotive Systems GmbH, a lidar and sensor fusion company in Hamburg, Germany, and double-Slash Net-Business GmbH, a Friedrichshafen company involved in software for vehicle networking. Lidar, an acronym for light detection and ranging, uses laser pulses to sense objects in the area. Kleiner said the company’s growth in active safety is likely to translate to roughly 100 to 200 new jobs at its facility in Farmington Hills in the next few years. The rest of ZF’s operations will remain “stable,” with no new consolidation tied to the TRW integration. “There’s no need to consolidate,” Kleiner said. “We took two years to integrate to get those tensions; it wasn’t handled all at once. We didn’t get distracted from customers and were able to keep pace with the market. We kept our people motivated and staged an effective approach, which is why we were able to grow these past two years with a financial performance that was better than expected.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

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SPECIAL REPORT: DETROIT HOMECOMING Tune in to Detroit Homecoming Portions of the Detroit Homecoming IV program will be available to stream online through a partnership with WXYZ-Channel 7. To view, go to Detroithomecoming.com. The live stream will include: n 7 p.m. Wednesday:

An opening night presentation featuring a fireside chat between actress and Detroit native Lily Tomlin and Crain’s Group Publisher and Detroit Homecoming Director Mary Kramer. It will be followed by a Lily Tomlin tribute to Tomlin and all things Detroit by songwriter and performer Allee Willis. n 9 a.m. Thursday: Mayor Mike Duggan. n 9:45 a.m. Thursday: A panel on jobs for

Detroiters featuring Stacy Brown-Philpot, CEO of TaskRabbit. n 8 p.m. Thursday: A

GETTY IMAGES/ISTOCKPHOTO

DETROIT’S JOBS OPPORTUNITY As expats return to the city, its pool of workers hungry for work could offer companies solutions By Dustin Walsh dwalsh@crain.com

Employers across the U.S. have a consistent message: There isn’t enough available talent. Detroit has too many workers who want jobs. Those facts mean that the city’s unemployment problem could be a big opportunity for businesses that need workers. The need for jobs for Detroiters and the opportunities presented by its supply of available workers will come into focus at this week’s Detroit Homecoming IV, presented by Crain’s Detroit Business. Attendees, who are native Detroiter “expats” who have found success elsewhere, are set to learn about ways that they can help beef up Detroit’s jobs picture. Among the ideas they’ll hear are the potential for outsourcing jobs such as call center work to Detroit, or

steering office purchases to Detroitand Michigan-based businesses. As the working-age population across the nation continues to rapidly decline, coupled with a strengthening economy, Detroit’s unemployed and out-of-the-labor force population may provide businesses in need of workers with new hope — particularly as the city gets better at training potential workers to match what employers need. The difference in employment pictures between Detroit and much of the rest of the country is stark. The unemployment rate in the city was 9.4 percent in July, compared with 3.7 percent for the state of Michigan and 4.3 percent for the U.S. as a whole. That rate remains one of the highest in the nation, providing prospective employers a large pool of potential applications. Plus, Detroit leads the nation in ma-

jor cities in working age people out of the labor force. Only 49 percent of Detroit residents aged 16 to 64 were employed in 2015. In Cleveland, it’s 55 percent; in Atlanta, 69 percent. If Detroit’s unemployed are put to work and demand increases, those no longer looking could be pulled back into the labor picture.

Solving the skills gap In 2015, Detroit Mayor Mike Duggan revived the Mayor’s Workforce Development Board, co-chaired by Strategic Staffing Solutions CEO Cindy Pasky and DTE Energy Vice Chairman Dave Meador, with the region’s top executives and workforce development agency heads to restructure its efforts to prepare Detroiters for the future economy, and more importantly, get them back to work. The board’s audacious goal was,

and still is, to put 100,000 of those unemployed Detroiters back to work. In the near-term, it has set a more reasonable, yet still bold, goal of 40,000 new jobs in the next four years. “We’re planning for what we expect to happen; for Detroit’s economy to expand and to recapture our place in the U.S. and, maybe, abroad,” said Nicole Sherard-Freeman, president and CEO of the Detroit Employment Solutions Corp. and former corporate consulting executive. “The way we are approaching job readiness with a large urban population, quite frankly, is aggressive and none of our peers in other cities are keeping pace.” The board is initially focusing on five industries — health care, manufacturing, construction and transportation, information technology and retail, hospitality and entertainment. Its work includes pilot programs SEE JOBS, PAGE 11

Stephen Ross

discussion between philanthropist and University of Michigan donor Stephen Ross and Golden State Warrior Draymond Green of Michigan State University, moderated by Dan Gilbert.

n 9:20 a.m. Friday: Rockefeller Foundation President Rajiv Shah on Workforce and the future of Detroit. n 9:35 a.m. Friday: Columbia University

economist and Earth Institute Director Jeffrey Sachs. n 10 a.m. Friday: A panel on the 50 years since the 1967 Detroit riots, called “Looking Back To Look Forward,” featuring Mary Wilson of the Supremes; TV producer David Salzman; W.K. Kellogg La June Foundation CEO La Montgomery June Montgomery Tabron Tabron; Detroit Planning Director Maurice Cox; school board member Misha Stallworth; and Garlin Gilchrist II, a expat who returned home to run for city clerk. The panel is moderated by Crain’s Editor and Publisher Ron Fournier.

Why Homecoming idea is universal — and spreading

In August 2013, as Detroit was sliding into history as the largest municipality in the United States to file for bankruptcy, Jim Hayes had an idea: What if successful people — people with influence, people with money — who had a tie to Detroit could be persuaded to return, re-engage and reinvest in the city? The retired publisher of Fortune magazine took the concept to Keith Crain, chairman of Crain Communications and editor-in-chief of Crain’s Detroit Business. A year later, in September 2014, we

MARY KRAMER Group Publisher

welcomed 150 “expats” to the inaugural Detroit Homecoming. Now, as Detroit Homecoming IV begins on

Sept. 13 with 230 invited expat guests, we are tracking millions of dollars of commercial and philanthropic investments led by or including expats. Now other cities are borrowing the idea, staging their own “homecomings” to re-engage their own “sons and daughters” of those communities. Flint hosted its inaugural homecoming in August (see story, Page 19). Erie, Pa., has been at it for two years. Our team has been offering counsel and advice to Baltimore, Cleveland and Newark — all three considering SEE KRAMER, PAGE 11

CRAIN’S DETROIT BUSINESS

Tables are set for dinner for more than 200 participants of Detroit Homecoming III last year, at the former Brewster Wheeler Recreation Center in downtown Detroit.

The world is watching. Home is calling.

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SPECIAL REPORT: DETROIT HOMECOMING JOBS

FROM PAGE 9

that have trained 240 Detroiters this year for patient care associate and patient sitter roles at Detroit’s three health systems, more than 100 jobs in four IT training programs, a prison reentry program that’s trained 175 convicts in culinary arts and hi-lo operation and dozens more in basic construction. It’s a small start, but it’s a massive operation to steer new training methods away form traditional workforce development, said Nicole Sherard- Sherard-Freeman. There are nearly Freeman: 400 workforce deApproaching lifelong learning as velopment organizations operating an expectation. in the city, and the work has been uncoordinated. “We always thought that if we built training programs, jobs readiness programs and market it differently, just go out and tell people, they’d be lined up around the building. That’s not true in Detroit or in Baltimore or in Kansas City,” she said. “We thought we knew how to do this, we’d talk to employers and tell them how to train their employees. That’s not how it works. Maybe that’s not how it ever worked.” The board and the DESC began val-

KRAMER FROM PAGE 9

their own versions in 2018. Why has this formula worked? My own armchair theory is that successful people, once they reach a certain stage in life, look back to their roots that helped shape their future success. You can’t deny that there are special relationships people form with the identity of their hometowns, whether it’s Detroit or Cleveland or Baltimore or Flint. In Detroit’s case, its underdog, “Detroit vs. Everybody” image resonates with many expats. Everybody loves an underdog, and it’s hard not to love Detroit. The city has survived the ups and downs of a cyclical and sometimes fickle auto industry. It survived 1967. As Ford Foundation CEO Darren Walker said when he spoke at Detroit Homecoming III in 2016, Detroit is remarkable because it “embodies all that’s amazing and remarkable about America” but also has its share of America’s contradictions when it comes to race, class and inequality. Richard Florida, an urban theorist, once declared that Detroit’s greatest export wasn’t cars, it was talent. The tide may be turning. In an Aug. 31 post on his CityLab blog, Florida took note of one of the greatest expatreturn-to-the-Rust-Belt stories: NBA great LeBron James’ return to Cleveland to play in northeast Ohio and raise his kids in his native Akron. In that blog, Florida examines how another beleaguered city, Youngstown, Ohio, was benefiting from re-engagement of expats. The city has gotten some buzz because of its dynamic mayor, Jay Williams. Like Detroit, Youngstown had a steep population

idating existing programs by creating a demand forecast, securing hiring commitments from employers and working with them to design training, largely for the first time in the city’s workforce development history. Barriers still remain, such as a weak public transportation system, the hangover of unpaid driver responsibility fees that keep people from driving legally and illiteracy from a failed public school district. The board is working to knock some obstacles down. But if the board is successful in reaching its 40,000 jobs goal, the city could serve as a beacon to expanding businesses across the U.S. No other city has the available space — 900 vacant industrial buildings spread throughout the city, according to a June report by Detroit Future City. Mash in a ready workforce, and Detroit is an attractive solution. But don’t mistake the city for a charity case, where an employer can come in and be a savior, said Sherard-Freeman. “This is an element of the stars being aligned. We could have plateaued; we could have stayed in the stinkhole,” she said. “But we’ve come out of bankruptcy, after a couple of decades of being unhappy, and we have an entirely different tone. ... If you want to establish your business and grow your own talent in ways you’ve never thought of, you’re in the right place.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh loss — 30 percent from 1990 to 2010. Florida also cites a study by sociologist Jill Harrison, who did deep interviews with 22 people who had returned to their native Youngstown. All but two of Harrison’s subjects were under 40; the sample was split evenly between men and women. And here’s what was surprising about Harrison’s research. Yes, there were family or economic reasons to return. But more importantly was a decision shaped by what Harrison called “place character” — the character of the city itself. That authenticity is what seems to power a lot of what people love about Detroit (and yes, maybe the sports teams, too, even when they’re not winning). Detroit Homecoming alumni may never move “home.” But they’re making a difference, as you can see on the pages in this section. But don’t count out luring young college grads home to Detroit, either. Last year, Google co-founder Sergei Brin advised attendees at a global entrepreneurship summit that it might be easier to start a company outside of Silicon Valley. It’s cheaper — salaries, real estate and other hard costs — and the battle for talent may not be so intense. But once a company has traction, he suggested, it may be easier to find investors in the Valley. His advice may well have been: “Go east, young man and young woman.” Authenticity, cheap real estate and major universities a stone’s throw away for talent. Those are a pretty good foundation upon which to build an economy. Mary Kramer is group publisher of Crain’s Detroit Business and director of Detroit Homecoming.

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DuCharme Place is an apartment project in Lafayette Park.

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Expats find real estate deals way to add to Detroit Kirk Pinho

kpinho@crain.com

Two years ago, Teresa Sebastian bet on her hometown. The Detroit native who currently splits her time between Florida and Tennessee made her first real estate investment in the city, where she grew up on Atkinson Street. Hers is a tale like those of many others who have attended the Detroit Homecoming event the last three years, and who are attending this year’s event that starts Wednesday: One way to contribute to Detroit is investing their money in real estate development deals. Today, the president and CEO of Teresa Sebassuburban Orlantian: Invested where she grew up. do-based venture capital firm The Dominion Asset Group’s money is in four wildly different projects — and she expects more to follow. For Sebastian, those deals are the DuCharme Place apartment project in Lafayette Park; the Assemble Sound music studio, which repurposed a former Corktown church;

the redevelopment of the former Tiger Stadium site; and a real estate fund by Century Partners, which is redeveloping homes along the street where she was raised. “They were projects that are really being catalysts and anchors for the turnaround of Detroit, so that was very important, and they are projects that spur some economic benefits to the community in terms of jobs and housing, and they were certainly viable because they are attractions for individuals,” said Sebastian, who left Michigan in 2010 and returns this week for the fourth Detroit Homecoming. She declined to reveal how much Tess Mateo: Has she invested. Tess Mateo, who invested in went to Troy Athproperties, land. ens High School and the University of Michigan, said she has invested about $200,000 in over a dozen residential and commercial properties, plus vacant land, in the city since she attended Detroit Homecoming I in 2014. The managing director of CXCatalysts, Mateo said SEE PROJECTS, PAGE 15

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SPECIAL REPORT: DETROIT HOMECOMING Three neighborhoods During the Detroit Homecoming event this week hosted by Crain’s Detroit Business, expats will go on immersion tours of three distinct neighborhoods outside downtown and Midtown where serious revitalization efforts are underway. Here are brief overviews of the three: Neighborhood: Brightmoor. Private investment: $4.1 million. Home renovations: 155. Homes: 5,192. Home sales (2016): 39. City-owned commercial properties: 29. Overview: This northwest Detroit neighborhood is in the vicinity of a new Meijer Inc. store plus other planned projects by Detroit-based The Platform LLC and others. The Brightmoor Alliance and Sidewalk Detroit, for example, received a Kresge Foundation grant allowing them to pair artists and community members and organizations at Eliza Howell Park for six- to 12-week residencies to design and implement participatory performances, workshops, classes and park improvements.

City-owned commercial properties: 26. Overview: Organizations like Life Remodeled and others are working on things like teaching Detroit students software and assembly line robot coding in this central Detroit neighborhood, where the 1967 Detroit riots/rebellion began. Life Remodeled also recruited 12,000 volunteers and hundreds of companies to remove blight from 300 blocks in the area, board up 300 homes and complete home repairs for 50 homeowners. Neighborhood: University District. Private investment: $3.4 million. Home renovations: 276. Homes: 1,252. Home sales (2016): 71. City-owned commercial properties: 1.

Homes: 3,719.

Overview: This area, anchored by the University of Detroit Mercy and Marygrove College, has been a key target in the city's redevelopment efforts outside the greater downtown area. Development interest has been robust, as The Platform LLC, Century Partners and Matt Hessler all have projects afoot in the area. The Live6 Alliance, an effort by UDM, Kresge and the Detroit Economic Growth Corp., launched two years ago to bring economic development to the Livernois-McNichols area, which includes the Fitzgerald neighborhood targeted by The Platform and Century Partners.

Home sales (2016): 23.

Source for data: TheNeighborhoods.org

Neighborhood: Dexter-Linwood. Private investment: $10.7 million. Home renovations: 222.

Thanks to the generosity of the Michigan State University Federal Credit Union, MSU is opening the Science Gallery Lab in Detroit—the first of its kind in the U.S. It’s aimed at igniting a passion for science, art, technology, and innovation in Detroit’s young people.

WHEN ALL ROADS LEAD HOME, WE’LL LEAVE THE LIGHTS ON FOR YOU.

JACOB LEWKOW

Chris Lambert, CEO of Life Remodeled, greets a volunteer at the former Durfee Elementary-Middle School building where a new innovation center will be located, converting the expansive school into a community hub.

PROJECTS FROM PAGE 14

she was speaking with someone from Detroit-based Loveland Technologies Inc. that year when she heard about properties selling for $500 at the Wayne County tax-foreclosure auction. “I’m from New York, so $500 is like a few dinners,” she said with a laugh. Since then, Mateo’s contractors, Detroit-based Building Hugger and Corktown Maintenance, have provided jobs to dozens of unemployed and/or homeless people to renovate the properties, which are not only in the greater downtown area, but also neighborhoods like Warrendale and East English Village. Others, like Detroit native John Rhea, have been more publicly active in downtown real estate. For example, he is planning a nearly 300-acre multi-

family housing development in Brush Park with a mix of incomes and home styles, ranging from apartments to carriage houses and townhomes. He is also a member of the ownership team of the Fisher Building and Albert Kahn buildings in the New Center area, which were purchased in 2015 for $12.2 milJohn Rhea: Active lion. The Fisher in downtown real Building is underestate. going a multimillion-dollar renovation; last month, the ownership group put the Kahn Building up for sale for an undisclosed price through the Royal Oak office of JLL. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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The Factory at Corktown revs up for Homecoming By Annalise Frank afrank@crain.com

Its full renovation won’t be complete for about a month, but The Factory at Corktown officially opened last week, its owners announced new plans for another nearby lot — and it will get a test drive at this week’s Detroit Homecoming IV. The 45,000-square-foot facility will be the first official headquarters for Buhl Sport Detroit and aftermarket automotive parts maker Brothers Tuning Detroit. It is a three-story building and a two-story building joined in the middle by a 9,000-square-foot garage. The Factory at 1907 Michigan Ave. and 1927 Michigan Ave. also has a rooftop terrace and 8,000 square feet of special event space with catering by Troy-based Continental Services. It will also host breakfast and lunch events during the fourth annual Detroit Homecoming, a gathering produced by Crain’s Detroit Business for Detroit natives who return to the city to learn, reconnect and invest. This year’s event takes place at The Factory, in Michigan Central Station and other locations Wednesday through Friday. Brothers Robbie and Tom Buhl founded Buhl Sport Detroit in 2015 as a racing team and motorsports marketing business. The Buhl family and Britt Greene bought the building complex in 2015 under Riverfront Partnership I LLC and have been renovating since, Greene said. Greene is a real estate developer and former president and CEO of the Florida-based St. Joe Co. The owners will also lease out firstfloor retail space and some office space after the renovation is finished. Greene declined to disclose the exact cost of renovation but said it was a “multimillion”-dollar project. The general contractor is Midtown Building Co. “We took it back to its original 100-plus-year-old look,” Greene said. “We took a building that had been

“We took a building that had been vacant ... in the center of Corktown. I think it’s a huge plus for the city. I think it’s Corktown’s turn now.” Britt Greene

vacant ... in the center of Corktown. I think it’s a huge plus for the city. I think it’s Corktown’s turn now.” Duggan echoed Greene’s sentiment after the ribbon cutting: “I’m just glad to see the historic buildings in the city get reused,” he said. The Factory is evidence of development “spreading out across Michigan Avenue” from downtown, he added. The red brick buildings, built in 1907 and later expanded, sit across the street from the old Tiger Stadium site and were home to the former Chicago Hosiery and Detroit-Alaska Knitting Mills factories. Greene and the Buhls have also purchased a 2.5-acre lot across Michigan Avenue from The Factory, running from Rosa Parks Boulevard to the Gaelic League Irish American Club along the Fisher Service Drive. Greene declined to provide details on the purchase, but he did say the open triangular plot would be changing significantly in the future. It was purchased under Corktown Equities LLC. “We’re just high on Corktown,” he said. Until the owners move forward with development plans, Buhl Sport Detroit will use the empty space for its Teen Street Skills driving program. The Factory has already begun hosting events: It held the city’s first Cars in Corktown event Aug. 26 presented by Crain’s sister publication Autoweek, with classic cars on display.

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SPECIAL REPORT: DETROIT HOMECOMING

When Wright Lassiter met Arn Tellem By Jay Greene jgreene@crain.com

It started out as a joke suggested by CEO Wright Lassiter III of Henry Ford Health System at Detroit Homecoming II in 2015. But over time it eventually led to the Detroit Pistons choosing Henry Ford Health System as the team’s official health care provider and a 100,000-square-foot practice and corporate headquarters in Detroit’s New Center neighborhood, Lassiter said. Lassiter was moderating a panel discussion Oct. 2, 2015, with Arn Tellem of the Detroit Pistons and several other celebrities on the impact of sports on racial issues. Both men were new to Detroit and new to their roles. “I met Arn for the very first time on the very day of the panel,” Lassiter said. “We chatted off stage about questions we put together to ask everyone. When it came to Arn, I said jokingly there is a question beyond any standard questions that everyone wants me to ask you: ‘Are the Pistons going to move downtown?’” Lassiter recalled Tellem looked sheepishly at him and said: “Do you want me to answer the question?” Lassiter replied no, he just wanted to make a joke about the widely reported rumor in front of the audience. But that joke turned into something much more over the next 18 months,

CRAIN’S DETROIT BUSINESS

Arn Tellem (far right), vice chairman of Palace Sports & Entertainment, speaks during 2015 Detroit Homecoming panel discussing how sports can be a catalyst for improving race relations. Also on the panel was moderator Wright Lassiter, CEO of Henry Ford Health System (left); Ndidi Massay, CEO of RISE; Dave Bing, former mayor and NBA player; George Gervin, NBA Hall of Fame; Lauryn Williams, four-time Olympian; and Tim Richey, Detroit PAL.

said Lassiter. Last November, team owner Tom Gores announced the Pistons would move to Little Caesars Arena for the 2017-2018 season after 29 years at The Palace in Auburn Hills. In February, the Detroit Pistons struck the deal with Henry Ford for the facility in New Center, where Henry Ford Hospital and its corporate headquarters are also located. The approximately $65 million facility will also bring about 200 to 250 Pistons-related employees to New Center. The facility will be privately financed and will be owned by the Pis-

tons organization. It also will include a sports medicine, treatment and rehabilitation facility managed by Henry Ford. Lassiter said Tellem invited him to breakfast at the Rugby Grille at the Townsend Hotel in Birmingham several months after the Homecoming panel. “He (Tellem) said Tom Gores had asked him to evaluate the potential of moving downtown and getting more involved in” Detroit’s comeback, Lassiter said. “It was the first time I understood (the Pistons) were looking downtown. He talked about Henry

Ford being the medical partner.” In early 2016, the Pistons and Henry Ford put together small management teams to hash out the details about a marketing sponsorship and team medical care, Lassiter said. “We wanted small teams because we didn’t want a lot of public discussion at that point,” he said. Lassiter said he was excited about the possibility. He said, coincidentally, he had asked Henry Ford managers to put together a strategic plan to expand the health system’s professional sports partnerships. “We have longstanding relationships with the Lions and the Ford family, but never with the Pistons,” Lassiter said. “I didn’t know what would happen, but I told (Tellem) whatever you decide (Henry Ford) wants to be part of any endeavor. The city would love for you to be downtown, but we would work with you in any environment.” When the deal was finally announced it February, Lassiter said the trusting relationship he had struck with Tellem back at the Homecoming event produced by Crain’s Detroit Business led to a perfect ending for both organizations. “Arn made it clear that Tom was fiercely interested in broadening Pistons interest and connection with Detroit,” he said. “The Pistons were the only remaining franchise not

Wright Lassiter III: Joked about Pistons move.

Arn Tellem: Looked at Henry Ford as partner.

playing games in an urban center. They had a strong business and emotional attachment to moving downtown.” Now called the Henry Ford-Detroit Pistons Performance Center, Lassiter said the multi-purpose building will further boost Henry Ford’s image in the health care world. It is expected to be completed sometime in 2018. “There is a halo effect for health systems to provide care to pro sports teams. If system X and doctor Y are good enough for a professional team, they are good enough for me,” Lassiter said. “It helps in market perception and enhancement as well as seeing pure business growth.” Lassiter said he expects Henry Ford’s orthopedic and sports medicine programs, already premier clinical programs, will receive a further boost in patient volume and additional revenue. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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SPECIAL REPORT: DETROIT HOMECOMING

O in H By

afran

Visitors tour the first floor concourse of the Michigan Central Station on July 13. The 110,000-square-foot concourse, with its marble walls and columns that soar to a 54-foot-tall ceiling, has limited commercial reuse options.

STATION FROM PAGE 1

Moroun envisions the depot having a straight-shot rail line to Detroit Metro Airport and being a stop for Amtrak’s high-speed train routes to Chicago and a connection to Ontario’s VIA through the adjacent rail tunnel that dips below the Detroit River. One of the biggest obstacles to redeveloping the train station is its location along Michigan Avenue on the outskirts of Corktown, nearly two miles west of Campus Martius in the central business district. To overcome that barrier, Moroun said a second QLine streetcar could be built along Michigan Avenue to connect downtown with the depot (like there used to be in the first half of the 20th century, as evidenced by old rails exposed along Michigan). “All of that is big bucks. I get that,” Moroun said. “But all of those moves are moves that happen over a long period of time because of a mass transit plan.” In pitching the idea, Moroun is essentially seeking public feedback — a noticeable departure from the often reclusive nature of his family’s business dealings in Detroit. Two influential players in Detroit’s transportation planning circles are receptive to the idea of the old train station going back online. “I’m excited that Matthew and his family are putting the energy into it that they are and that they’re evaluating these different ideas and I think it should be on the table,” said Matt Cullen, CEO of M-1 Rail, the private nonprofit that runs the QLine. Moroun has broached the idea of Amtrak trains running through the old train depot with Kirk Steudle, director of the Michigan Department of Transportation. Steudle said he’s receptive to the idea

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

and connecting the old train station to the central business district in the same way the QLine street car connects New Center with downtown. “I’ve had a number of people come up to me and say ‘How do we do something on Michigan Avenue like they did on Woodward?’” Steudle said. “If Matthew (Moroun) can be the person who brings together that group, well ... let’s continue having a conversation.” Moroun is putting forward the idea just as MDOT is starting to consider long-term planning for the Amtrak train station at the corner of Woodward and Baltimore in New Center. The train station, which is easy to miss for passersby, is near the QLine’s Baltimore Street stop. MDOT owns 3 acres on the south side of the railroad crossing over Woodward that is envisioned for a future intermodal station for QLine and Amtrak trains, bus rapid transit and possibly autonomous vehicles when they hit the road. Cullen thinks the intermodal station in New Center “still happens,” whether or not the old train station is resurrected. But having two intermodal stations is not out of the question, Cullen said. “It seems to me that there’s opportunity for both to be used in a transit mode over time,” said Cullen, who also is principal in Dan Gilbert’s Rock Ventures LLC. “I think they can perform different functions.”

Easy lifting, hard lifting As he toys with the idea of trains parked outside the train station again, Matthew Moroun is trying to make the numbers work for filling the rest of the building. Moroun has pegged the cost of renovating the entire train station at north of $100 million. “It would be really cool if some Fortune 500 company made it their head-

quarters in Detroit — and I wouldn’t turn down that opportunity,” Moroun said. But a mixed use of the building is a more likely option, Moroun said. The Moroun family’s real estate business, Crown Enterprises Inc., has concluded the top 13 floors of the train station can be redeveloped into office, hotel and residential space — or a combination of all three. Each floor has 25,000 square feet and the 12th and 13th floors were never developed, said Michael Samhat, president of Crown Enterprises. “We can afford to make a case to develop the tower — with one big caveat — if the train station portion of the building doesn’t wreck it,” Moroun said. “That first floor is the elephant in the living room — you can’t just ignore it.” The 110,000-square-foot first-floor concourse, with its marble walls and columns that soar to a 54-foot-tall ceiling, has limited commercial reuse options that would keep the building bustling, Samhat said. Interest in the building has picked up in recent years after the Morouns spent more than $8 million installing 1,100 new windows, building a freight elevator in the building’s original smokestack and removing debris and toxic asbestos. Crown Enterprises was recently “close” to inking a deal with one potential tenant to occupy 60 percent of the tower, Moroun said. “What kind of did us in was the train station portion,” Moroun said. “Once we started factoring it in, it drove the cost out of reason.”

A neighborhood rising One reason Moroun is mulling a return to trains is to create foot traffic in the burgeoning Corktown neighborhood and Roosevelt Park, which separates the train station from the Michi-

gan Avenue streetfront. Connecting Corktown to the central business district with mass transit could spur development west of downtown, Moroun said. “Now you’ve connected Corktown, this area here, and you’re rolling,” Moroun said during a lunchtime interview at Nemo’s, a popular Corktown bar. The QLine came to fruition thanks to some deep pockets with business interests who were looking to spur redevelopment momentum along the Woodward corridor. Auto racing and truck rental industrialist Roger Penske spent the better part of a decade championing the 6.6mile QLine loop, eventually convincing corporations, universities and hospitals along Woodward to invest $187.3 million in the street car system’s capital costs and initial operations. Troy-based Kresge Foundation donated $50 million — the largest single gift — and the foundation’s president, Rip Rapson, has shown interest in helping finance another street car project. Steudle said the development of mass transit along Michigan Avenue needs an influential voice like Penske and Rapson provided for the Woodward Avenue project. “If you get more people excited about it and you get somebody like Matthew Moroun who has a lot of influence, you never know what will happen,” Steudle said.

The family history In recent years, Matthew Moroun has become the public face of his family’s businesses, which are primarily based in Warren. As vice chairman, he has essentially taken over day-to-day operations of the business empire his father and grandfather spent decades building from a small truck-hauling company in Detroit to a nationwide trucking and logistics firm, CenTra Inc.

The Moroun family is widely known for its ownership of the Ambassador Bridge and a years-long battle for construction of a publicly-owned bridge to preserve its lucrative control of international truck traffic. Last week, the Moroun-owned Detroit International Bridge Co. won conditional approval from the Canadian government to build a new bridge to replace the 88-year-old Ambassador. That win came a week after Moroun companies suffered another loss in court in a bid to block construction of the new Gordie Howe International Bridge. Matty Moroun, who turned 90 in June and remains chairman of his companies, has spent decades acquiring property in Detroit for his bridge, commercial trucking and logistics operations. His most notable asset is the train station, which he bought in 1995. A razor wire fence has encircled the building ever since as the Morouns have contemplated multiple ideas for the train station’s reuse, ranging from a trade and customs center to Detroit’s police headquarters. None of the previous ideas have ever come to fruition, much less gained any traction. And, until late 2015, the building sat windowless for years, making it a frequent stop for gawkers of Detroit’s so-called “ruin porn.” The years of inaction has made Matty Moroun the subject of public scorn, which is not lost on the son. Mindful of the public’s emotional attachment to the hulking train depot, Matthew Moroun said he feels “an immense pressure” to deliver the best redevelopment solution for both the city and his family’s bottom line. “I don’t want it to be an economic disaster for my family,” he said. “So I’ve gotta get it right on both ends.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

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SPECIAL REPORT: DETROIT HOMECOMING

Other communities inspired by Detroit’s Homecoming events By Annalise Frank afrank@crain.com

Inspired by Detroit Homecoming’s focus on luring investment from expats, other communities are getting in on the game. Organizers of recent events in Erie, Pa., and Flint inspired by Detroit Homecoming are left contemplating the expat-centric gathering’s dual purpose as a community-builder and an investment opportunity. Cleveland, Baltimore and Newark, N.J., are also considering their own events and have consulted with Detroit Homecoming officials, Crain’s Group Publisher and Detroit Homecoming Director Mary Kramer said. Flint held its first homecoming Aug. 16-17, with building blocks provided by the three-year-old Detroit Homecoming. Detroit, the original home of the networking event for engaging former residents, will play host for the fourth annual event Sept. 1315 at Michigan Central Station and other spots around the city. On the heels of Flint’s first foray into homecoming, which drew 55-60 expats, Cheryl DeFrain, director of operations and planning for the Flint & Genesee Chamber of Commerce, said they are still waiting for overall investment numbers to come Cheryl DeFrain: in. But the event Still waiting for did receive posioverall numbers. tive feedback from expats and local businesses, she said. “We feel that for our first homecoming, this was more than what we expected and it was wonderful,” DeFrain said. Detroit’s homecoming program, produced by Crain’s Detroit Business, has drawn tens of millions of dollars of investment to the city; 200 expats attended last year, including former Microsoft Corp. CEO Steve Ballmer, who, with his wife Connie, are opening a philanthropy office in the city to make grants focused on reducing intergenerational poverty. Flint first considered the idea of emulating Detroit’s program in 2015. After meeting with Detroit event leaders to see how homecoming worked and if Flint could adapt it to its own audience, the Flint chamber of commerce met with interested local organizations, came up with a viable business plan and decided to go for it. “That was the discussion: ‘Can we do the same thing and have a like response for the Flint area? We’re not Detroit, but is this feasible in our area?’ Because in a way there are a lot of similarities between Flint and Detroit,” DeFrain said. DeFrain and a colleague attended Detroit Homecoming in 2016 to get a more immersive experience. They were particularly impressed by Detroit’s community tours, she said. The event offers a variety of tours of land

and businesses to show expats what the city has to offer and what it’s missing — its “gaps,” she said. She wanted to show Flint expats their own city’s gaps, and also the enormous potential the city had to offer. “There was such an excitement (at Detroit Homecoming),” DeFrain said. “Mayor (Mike) Duggan talked about the communities and what it used to be and what it is now and what it can be, and you could just feel an excitement from the expats.” Flint’s event featured panels, a community tour, pitches from local projects and speakers including Kramer, General Motors Co. executive Mark Reuss and Lt. Gov. Brian Calley. And now, in its wake, Flint’s leaders are “sitting down and evaluating” whether they'll host another next year, DeFrain said. By contrast, Erie, Pa., held its second homecoming Aug. 24 and planning is already underway for a more substantial, investment-focused turn in 2018, said Jake Rouch, vice president of economic development for the Erie Regional Chamber and Growth Partnership. Erie is nearly 300 miles from Detroit. But a business contact between the two cities drew them together and recommended the Jake Rouch: Pennsylvania city Planning to draw dream up an event expats to invest. to “help change the brand of Erie,” Rouch said. “But also get them reconnected to the community so they could share their expertise and play a role in its revitalization,” he said. Erie was inspired by the original, but its homecoming isn’t as similar to Detroit’s as Flint’s is — yet. The past two years, Erie’s chamber of commerce has brought 25-50 expats back to reconnect and speak about their paths to success. For next year, the organizers are hunting for more investors and executives to engage. They’re planning to draw expats back to the city with opportunities to invest in promising startups, the regeneration of the city’s downtown core and possibilities for satellite or branch locations, Rouch said. “Going forward, we’ll evolve into a much closer model to what (Detroit has), targeting the higher net-worth individuals to come back and make a higher investment,” he said. The event’s evolution is based on what Erie has seen out of Detroit, he added. “I think that message of optimism and belief in the future, for us, was very important to hear,” Rouch said. Cleveland is also planning to host a homecoming event inspired by Detroit Sept. 26-28, 2018, but Crain’s Cleveland Business Publisher and Editor Elizabeth McIntyre declined to comment further.

Detroit is reinventing itself. We invite you to be part of the rebirth by investing in our revitalization and bringing your meeting to America’s great comeback city. DISCOVER ALL THERE IS TO SEE AND DO IN THE D.

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BANK FROM PAGE 1

“Chemical Bank has a strong history of both organic growth and growth through acquisitions. We are focused on our Midwest footprint of Michigan, Ohio and Indiana where we believe we have significant opportunity,” Shafer told Crain’s. “We have a record for consistent, strong organic growth and market and competitive trends suggest that strong organic growth will continue. Therefore, when and if we do acquisitions, we will be highly selective and disciplined.”

Was it a coup? Provost replaces Ramaker as president and CEO of Chemical Financial. Shafer replaced Ramaker as president and CEO of Chemical Bank, which became the largest bank headquartered in Michigan after the deal and now has $18.8 billion in assets. Following the acquisition, Provost was named vice chairman of Chemical Financial and Shafer was named the executive vice president and director of regional and community banking at Chemical Bank. Gary Torgow, who had been Talmer Bancorp’s chairman before the acquisition, was named Chemical chairman after the deal closed and remains chairman. Dennis Klaeser, who was Talmer’s CFO, is Chemical Financial’s CFO. The bank will remain based in Midland, the new executives said. The announcement that Ramaker was stepping down characterized it as a retirement, but some in the Midland business community and the Michigan banking community use the word “coup,” which Provost and Shafer dispute vociferously.

David Provost: A true merger of equals.

Thomas Shafer: Focused on Midwest footprint.

Coup or not, the change in leadership was widely praised by industry observers. They said some of Talmer’s large commercial customers had been disgruntled over lingering IT problems connected to merging two bank systems, and that shareholders were disappointed over recent lackluster quarterly earnings reports and a declining share price — $47.87 to open trading June 21, off from a high of $55.55 on Dec. 12. There was also a

“There was no board coup. When you put two teams together, there is going to be some churn...” Frank Wheatlake

perception that Provost and Shafer would be more adept than Ramaker at quickly growing Chemical’s business in large urban markets like Detroit and Cleveland and expanding the bank’s footprint in the Midwest through acquisitions. Ramaker himself had a track record of acquiring community banks, but in small markets. Scott Siefers, an analyst with Sandler O’Neill, wrote the day the retirement was announced that “in the limited time we had spent with them

during their days at Talmer, we found the team very, very impressive. They came across as clear and logical thinkers, and we sensed a resultsand accountability-driven culture.” The six analysts who follow Chemical rate it positively, with two ratings of overweight, one strong-buy rating, one outperform rating and two buy ratings. Three of those ratings were made after the Ramaker announcement. “Both Ramaker and Provost will go down in Michigan banking history as two of the best CEOs ever,” said John Donnelly, a managing director in the Grosse Pointe investment banking firm of Donnelly Penman & Partners. (Donnelly wasn’t involved in the Talmer deal.) “What Talmer accomplished over the years is unprecedented. Ramaker is a great banker, but Tom Shafer is the right guy, the perfect choice, to replace him. I’ve known him for 30 years and he’s absolutely the right guy for the job. His background includes big markets and small, and he can mesh Chemical’s outstate and downstate cultures perfectly.” Provost and Shafer say the change in management proves that the deal was a true merger of equals. Talmer shareholders got $1.61 in cash and 0.4725 shares of Chemical stock for each share of Talmer they owned, becoming 45 percent stakeholders in the combined company. “It wasn’t a coup,” said Shafer. “Dave Ramaker retired after bringing the companies together and a system conversion, and it made all the sense in the world to look internally for succession planning. This is really about Chemical Bank continuing to grow and taking advantage of markets we are in.” Frank Wheatlake has been a member of the board since 2006. “David Ramaker was a tremendous visionary

MADE IN DETROIT In 1817, the “University of Michigania” was founded in Detroit and benefited from land ceded by the Ojibwe, Odawa, and Potawatomi tribes. Today, in 2017, we celebrate 200 years of connection, with the Detroit Festival on September 15 at Grand Circus Park, commemorating U-M’s founding and honoring our deep connections to the city, past, present, and future.

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and the architect who took Chemical from being a $3 billion bank to being an $18 billion bank, and he wanted to retire,” he said. “There was no board coup. When you put two teams together, there is going to be some churn, and I am very positive about Tom Shafer and the management team.” Ramaker, a past president of the Michigan Bankers’ Association, couldn’t be reached for comment.

Some surprised Feeding the coup narrative, though, is the timing of Ramaker’s departure. One source said he had a meeting with Ramaker in early June and that the bank executive talked about long-term plans for growing the bank and didn’t mention retirement. He said he talked to other people who met with Ramaker in the days before the announcement. Ramaker gave no hint of leaving in those meetings, either. Then there is how quickly his retirement took place. The June 21 press release said that Ramaker, who joined Chemical Bank as a vice president in 1989, became president and CEO of the bank in 2001 and president and CEO of the holding company in 2002, would retire by the end of September. But a press release by the bank on July 13 already listed Provost as CEO. According to an SEC filing by the bank, on Aug. 9 Ramaker entered into an agreement with the bank, giving him ongoing payments totaling $4.2 million and immediately vesting his unvested stock options. The filing read in part: “In consideration of the foregoing, Mr. Ramaker has agreed to a general release of all claims against the corporation.” One possibility, said bank observers, is that while there was no coup, per se, it became clear to Ramaker prior to his announcement that Talmer execs had grown more influential with his board than he was. Rather than prolong things or start butting heads, it was easier to step down. After the Talmer deal went through, five of its executives got spots on Chemical’s 12-member board. But several of Chemical’s directors joined Chemical through acquisitions and might have had less institutional loyalty to Ramaker than others on the board, including Larry Stauffer, whose Caledonia Financial Corp. was acquired in 2003; John Pelizzari, whose Northwestern Bancorp was bought in 2014; and Richard Lievense, whose Lake Michigan Financial was acquired in 2015. Said one industry insider, an investment executive in Midland who knows both Ramaker and Shafer well and thinks highly of each: “This was shocking to everyone in Midland. I got a text in the middle of the night saying David was out. It was totally shocking. You had two organizational approaches. Trying to integrate two banks together can take a lot of time or a little time. The Talmer people didn’t like the way things were going. They wanted to make things go faster and got some Chemical board members to flip and join them.” “I was surprised by the announcement of the CEO change,” said McEvoy. “But after putting thought into it, I can see why the board thought David Provost was the individual who could take the bank to the next level and into new markets. I agree with the board that Provost was that person. Ramaker is a very good banker and it couldn’t have been an easy decision by the board. They are two very qualified individuals. But Provost has the

willingness to crank up progress faster than Ramaker.” McEvoy, who upgraded the bank to an outperform on July 10 with a oneyear target price of $56, praised the rest of what has become a Talmer-led management team, particularly Klaeser. “He was the mastermind behind the Chemical acquisition, which created a lot of shareholder value for both companies.” Talmer is seen as the bank that more vigorously pursued the acquisition, convincing a reluctant Ramaker, who until then had assiduously avoided big markets like Detroit and southeast Michigan. Insiders say Ramaker eventually agreed to the deal to help mitigate the extra cost of more regulatory compliance required under Dodd-Frank of banks when they surpass $10 billion in assets. At the time the deal was announced, Chemical had $9.2 billion in assets. By joining together, the combined entity could offset increased compliance costs by closing overlapping branches and merging back-office and other operations. As of June 30, the bank had 249 branches in Michigan, northeast Ohio and northern Indiana and about 3,500 employees.

Banks’ history On March 14, Chemical Bank celebrated its 100th anniversary by having its management team ring the opening bell at the Nasdaq exchange. The bank first opened its doors in downtown Midland as Chemical State Savings Bank. Chemical Bank had made 12 previous acquisitions since 2000, buying Holland-based Lake Michigan Financial Corp. and its $1.2 billion in assets in 2015 and the $873.8 million in assets of Traverse City-based Northwestern Bancorp in 2014. In 2007, Talmer was founded as the single-branch First Michigan Bank in Troy. It quickly grew by buying the assets of distressed Michigan banks as they were shut down by federal regulators during the Great Recession, acquisitions funded in part by raising $200 million in equity capital in April 2010, including almost $50 million from New York financier Wilbur Ross Jr. By the time the Chemical deal was announced, Talmer Bank had grown through eight acquisitions, most of troubled banks being shut down by the Federal Deposit Insurance Corp. It had gone from a one-branch bank with $75 million in assets to 71 branches in three states and assets of about $6.6 billion. As it eyed expansion into Ohio, Illinois and Wisconsin, First Michigan Bank changed its name. Talmer was coined as a combination of the last name of Provost’s grandfather, John Talmage, and Torgow’s grandfather, M. Manuel Merzon. The bank began trading on the Nasdaq exchange in February 2014 after an initial public offering of $250 million. In February 2016, Ross, now the U.S. Secretary of Commerce, told the audience at the annual Crain’s M&A event why he made his investment. “We didn’t think Michigan was going to zero, which was the prevailing wisdom at the time. And we believed in Dave and Gary,” Ross said, referring to Provost and Torgow. “Banking is the most management-intensive business in the world, and we believed in their management.” Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

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SPOTLIGHT

Plunkett Cooney elects president, CEO

Bloomfield Hills-based Plunkett Cooney PC elected Thomas Vincent its new president and CEO. Vincent began his new role Sept. 1. He replaces Dennis Cowan, who will continue to lead the firm’s govafThomas Vincent ernment fairs practice group and practice full time, according to a news release. Vincent is a partner and board member at Plunkett Cooney, where he has worked for more than three decades. Prior to joining the litigation and transaction firm, Vincent was a senior trial attorney for nearly four years in the Oakland County Prosecutor’s Office. During his three-year term, Vincent will remain a trial attorney as he manages the company’s 140 attorneys and 300 employees and nearly a dozen offices across Michigan and in Chicago, Indianapolis and Columbus.

Ford ad agency picks new creative leader

WPP’s dedicated Ford agency has hired an Argentina native with nearly two decades of U.S. auto ad agency experience, as its global chief creative officer, Advertising Age reported. Tito Melega assumes the role as the automaker enters a critical advertising phase amid slowing market conditions. Melega replaces Toby Barlow, with whom GTB parted ways earlier this year. The agency, known as Global Team Blue, or GTB, spans 52 offices across six continents and is headquartered in the shadow of Ford’s corporate campus in Dearborn. Melega, 50, who came to the U.S. at age 20, has 17 years experience working on auto brands. He oversaw Nissan advertising from 2010-14 as creative director for the Americas at Omnicom’s TBWAChiatDay. He previously worked on Mitsubishi as a vice president at BBDO from 2005-08.

On My Own chooses new leader

Troy-based On My Own of Michigan Inc. has named Jennifer Roccanti its new executive director. She replaces Bruce Benson, who now leads community and church engagement at Olive Crest children’s shelter in Tacoma, Wash. Roccanti, 32, brings nearly a decade of experience at Miriam’s Kitchen Washington, D.C., most recently serving as chief performance officer of the $4.5 million nonprofit that combats homelessness. Roccanti has a print journalism degree from Suffolk University in Boston, an executive certificate in nonprofit management and a certificate in strategy performance management from Georgetown University.

New HUD grant application planned for Brewster-Douglass By Kirk Pinho kpinho@crain.com

The city of Detroit and Detroit Housing Commission are again embarking on an effort to secure up to $30 million in U.S. Housing and Urban Development grant funding to redevelop the former site of the Brewster-Douglass housing projects. The Choice Neighborhoods grant would be a key financing piece in the city’s effort to redevelop the 22 acre site, one of the largest residentially-zoned plots of land in an area that has attracted attention from many developers in recent years. Arthur Jemison, Detroit’s director of housing and revitalization, said Friday that the master plan for the site is

CRAIN’S DETROIT BUSINESS

The Brewster-Douglass housing project was demolished in 2014.

being updated and the city and commission are “reviewing team configuration options” with plans to apply for a Choice Neighborhoods implemen-

tation grant by the Nov. 22 deadline. For fiscal year 2017, HUD has $132 million available to be divided up among an expected five recipients. Applicants can request up to $30 million under the program, which is designed to replace low-income housing that has been demolished. In October, the city was informed that it was not one of five finalists selected for the grant, which would have been used to fund a $416.7 million redevelopment of the site of the former housing projects along I-75 south of Mack Avenue, plus two other sites in Eastern Market. Jemison said Tuesday that it’s not yet known whether the Eastern Market sites will be included in this year’s grant

application. The city selected a joint venture between Dan Gilbert’s Detroit-based Bedrock LLC; Novi-based Ginosko Development Co.; Columbia, Md.based Enterprise Community Partners; and KBK Enterprises, which has offices in Columbus, Ohio and Pittsburgh, to develop the project. When asked if “reviewing team configuration options” meant that one or more of those four companies could be replaced as a member of what’s known as an Implementation Entity, Jemison said: “We are reviewing all options to make our proposal as competitive as possible.” He said Tuesday that a new request for proposals does not need to be issued.

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // S E P T E M B E R 1 1 , 2 0 1 7

CRAIN'S LIST: WAYNE COUNTY'S LARGEST EMPLOYERS

Ranked by full-time employees July 2017, excluding Detroit, Hamtramck and Highland Park Rank

Company Address Phone; website

Top local executive(s)

Full-time Full-time employees in employees in Full-time Wayne Wayne employees in Worldwide County County Michigan employees July 2017 July 2016 July 2017 July 2017 Type of business

Ford Motor Co. 1 American Road, Dearborn 48126 (313) 322-3000; www.ford.com

Jim Hackett CEO

42,740

42,105

48,000 B

Beaumont Health 2000 Town Center, Suite 1200, Southfield 48075 (248) 213-3333; www.beaumonthealth.org

John Fox president and CEO

9,436

7,391

28,061

28,071

Health care system

Trinity Health 20555 Victor Parkway, Livonia 48152 (734) 343-1000; www.trinity-health.org

Richard Gilfillan president and CEO

4,636

3,970

22,211

Health care system

Dearborn Public Schools 18700 Audette, Dearborn 48124 (313) 827-3020; www.dearbornschools.org

Glenn Maleyko superintendent

2,181 C

2,028

2,181 C

Public school district

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

Wright Lassiter III president and CEO

2,152

1,958

18,520

Health care system

U.S. government 477 Michigan Ave., Detroit 48226 (313) 226-4910; www.usa.gov

1,877

1,855

29,027

AAA Michigan 1 Auto Club Drive, Dearborn 48126 (313) 336-1234; www.aaa.com

Joseph Richardson president and CEO, The Auto Club Group

1,850

1,826

3,548

7,847

Plymouth-Canton Community Schools 454 S. Harvey St., Plymouth 48170 (734) 416-2700; www.pccsk12.com

Monica Merritt superintendent

1,787 C

1,806 C

General Motors Co. 300 Renaissance Center, Detroit 48265 (313) 556-5000; www.gm.com

Mary Barra chairman and CEO

1,765

1,284

52,427

221,083

U.S. Steel - Great Lakes Works 100 Quality Drive, Ecorse 48229 (313) 749-2100; www.uss.com

Ronald Kostyo general manager, Automotive Operations

1,758

1,865

FCA US LLC 1000 Chrysler Drive, Auburn Hills 48326-2766 (248) 576-5741; www.fcanorthamerica.com

Sergio Marchionne chairman and CEO

1,609

1,476

34,000

86,900

Livonia Public Schools 15125 Farmington Road, Livonia 48154 (734) 744-2500; www.livoniapublicschools.org

Andrea Oquist superintendent

1,591 C

1,604 C

Public school district

Wayne-Westland Community Schools 36745 Marquette St., Westland 48185 (734) 419-2000; wwcsd.net

Michele Harmala superintendent

1,530

1,435

Public school district

U.S. Postal Service 1401 W. Fort St., Detroit 48233-9998 (313) 226-8678; www.usps.com

Lee Thompson district manager

1,495

18,577

508,908

Postal service

Yazaki North America Inc. 6801 Haggerty Road, Canton Township 48187 (734) 983-1000; www.yazaki-na.com

Yutaka Inagaki president and CEO

1,475

1,530

1,677

290,000

Automotive supplier

ZF 12001 Tech Center Drive, Livonia 48150 (734) 855-2600; www.zf.com

Franz Kleiner CEO

1,455

1,293

3,075

65,362

Automotive supplier

Acro Service Corp. 39209 W. Six Mile Road, Suite 250, Livonia 48152 (734) 591-1100; www.acrocorp.com

Ron Shahani president and CEO

1,296

1,287

2,978

6,458

Staff-augmentation, outsourcing and IT and engineering consulting

Rick Snyder governor

1,257

1,028

State of Michigan 3042 W. Grand Blvd., Cadillac Place, Suite 4-400, Detroit 48202 (313) 456-4400; www.michigan.gov

DTE Energy Co. 1 Energy Plaza, Detroit 48226 (800) 235-8000; www.dteenergy.com

Gerard Anderson chairman and CEO

1,232

1,320

9,530

10,014

Energy and energy-technology company

Adient plc D 49200 Halyard Dr., Plymouth 48170 (734) 254-5000; www.adient.com

R. Bruce McDonald chairman and CEO

1,190

8,815

80,569

Automotive seating

Comerica Bank 411 W. Lafayette, Detroit 48226 (248) 371-5000; www.comerica.com

Michael Ritchie Michigan market president

1,120

1,224

4,803

7,989

Financial services provider

Taylor School District 23033 Northline Road, Taylor 48180 (734) 374-1200; www.taylorschools.net

Ben Williams superintendent

941 C

1,007 C

Public school district

General Electric 1 Village Center Drive, Van Buren Twp 48111 (734) 707-4203; www.ge.com

Joy Fewell CIO and site leader

850 B

850

3,062

Information technology, manufacturing

Ilitch companies 2211 Woodward Ave., Detroit 48201 (313) 471-6600; www.ilitchcompanies.com

Christopher Ilitch president and CEO

832

804

9,202

23,534

University of Michigan Ann Arbor 48109 (734) 764-1817; umich.edu

Mark Schlissel president

829

820

33,591

48,000

24 25

Automobile manufacturer

2,086,347 Federal government

Provider of insurance, travel agency services and emergency road services

Public school district

Automobile manufacturer

Steel manufacturer; hot and cold rolled sheet steel for automotive, appliance and construction applications Automobile manufacturer

State government

Food, sports and entertainment industries. Companies include Little Caesars Pizza, Olympia Entertainment, Detroit Red Wings, Detroit Tigers, Blue Line Foodservice Distribution, MotorCity Casino Hotel, Ilitch Holdings Inc., Champion Foods, Olympia Development and Little Caesars Pizza Kit Fundraising Program. Public university and health system

This list of Wayne County's largest employers encompasses companies headquartered in Wayne, Oakland, Macomb, Livingston or Washtenaw counties. It is not a complete listing but the most comprehensive available. The number of full-time employees may include full-time equivalents. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual figures may vary. NA = not available.

B Company estimate. C Figures are FTE counts from the Center for Educational Performance and Information. D Adient spun off from Johnson Controls on Oct. 31, 2016, to become an independent company. LIST RESEARCHED BY SONYA D. HILL

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // S E P T E M B E R 1 1 , 2 0 1 7

CRAIN'S LIST: WASHTENAW COUNTY'S LARGEST EMPLOYERS Ranked by full-time employees July 2017 Company Address Rank Phone; website

Top local executive

Full-time employees Washtenaw July 2017

Full-time employees Washtenaw July 2016

Full-time employees in Michigan July 2017

Worldwide employees July 2017

Type of business

University of Michigan Ann Arbor 48109 (734) 764-1817; umich.edu

Mark Schlissel president

31,920

30,835

33,591

48,000

Trinity Health 20555 Victor Parkway, Livonia 48152 (734) 343-1000; www.trinity-health.org

Richard Gilfillan president and CEO

6,883

7,169

22,211

Health care system

U.S. government 477 Michigan Ave., Detroit 48226 (313) 226-4910; www.usa.gov

3,147

3,172

29,027

2,086,347

Federal government

Ann Arbor Public Schools 2555 S. State St., Ann Arbor 48104 (734) 994-2200; www.aaps.k12.mi.us

Jeanice Swift superintendent

1,929 B

1,907 B

Public school district

Faurecia North America 2800 High Meadow Circle, Auburn Hills 48326 (248) 724-5100; na.faurecia.com

Kevin Lammers U.S. president

1,664

1,850

3,392

100,000

Eastern Michigan University 140 McKenny Hall, Ypsilanti 48197 (734) 487-8198; www.emutix.com

James Smith president

1,634

1,617

1,817

2,916

Public university

State of Michigan 3042 W. Grand Blvd., Cadillac Place, Suite 4-400, Detroit 48202 (313) 456-4400; www.michigan.gov

Rick Snyder governor

1,429

1,377

State government

IHA Health Services Corp. 24 Frank Lloyd Wright Drive, Lobby J2000, Ann Arbor 48105 (734) 747-6766; www.ihacares.com

Mark LePage, M.D. CEO

1,389

1,268

1,747

Washtenaw County 220 N. Main St., Ann Arbor 48107-8645 (734) 222-6850; www.ewashtenaw.org

Gregory Dill county administrator

1,252

1,260

1,252

Thomson Reuters 6300 Interfirst Drive, Ann Arbor 48108 (734) 780-8000; www.thomsonreuters.com

Jon Baron SVP and GM, tax and accounting

1,155

1,100 C

1,290

45,700

Software and information services for professionals.

Domino's Pizza Inc.

Patrick Doyle president and CEO

812

734

810

14,838

Restaurant franchisor

City of Ann Arbor

Howard Lazarus city administrator

729

City government

Ford Motor Co. 1 American Road, Dearborn 48126 (313) 322-3000; www.ford.com

Jim Hackett CEO

700

720

48,000 D

Automobile manufacturer

NSF International

Kevan Lawlor president and CEO

647

578

650

2,732

Washtenaw Community College

Rose Bellanca president

550

565

550

Higher education

ProQuest LLC 789 E. Eisenhower Parkway, P.O. Box 1346, Ann Arbor 48106 (734) 761-4700; www.proquest.com/en-US

Kurt Sanford E CEO

542

539

Information databases and microform products

Ypsilanti Public Schools 1885 Packard Road, Ypsilanti 48197 (734) 714-1210; www.ycschools.us

Benjamin Edmondson superintendent

519 B

527 B

Public school district

FCA US LLC

Sergio Marchionne chairman and CEO

511

486

34,000

86,900

Automobile manufacturer

DTE Energy Co.

Gerard Anderson chairman and CEO

453

472

9,530

10,014

Energy and energy-technology company

U.S. Postal Service

Lee Thompson district manager

440

18,577

508,908

Postal service

Lincoln Consolidated Schools 8970 Whittaker Road, Ypsilanti 48197 (734) 484-7000; lincoln.k12.mi.us

Sean McNatt superintendent

437 B

Public school system

Chelsea School District 500 Washington St., Chelsea 48118 (734) 433-2200; chelsea.k12.mi.us

Julie Helber superintendent

324 B

Public school district

Chelsea Milling Co.

Howdy Holmes chairman, president and CEO

319

318

319

Retail, institutional, food service baking mixes

The Suburban Collection

David Fischer chairman and CEO

257

237

2,027

2,093

Automobile dealerships

Blue Cross Blue Shield of Michigan/Blue Care Network

Daniel Loepp president and CEO

152

167

8,948

10,213

Health care insurer

Frank Lloyd Wright Drive, Ann Arbor 48105 11 30 (734) 930-3030; www.dominos.com Box 8647, Ann Arbor 48107 12 P.O. (734) 794-6000; www.a2gov.org

N. Dixboro Road, Ann Arbor 48105 14 789 (734) 769-8010; www.nsf.org E. Huron River Drive, Ann Arbor 48105-4800 15 4800 (734) 973-3300; www.wccnet.edu

Chrysler Drive, Auburn Hills 48326-2766 18 1000 (248) 576-5741; www.fcanorthamerica.com Energy Plaza, Detroit 48226 19 1(800) 235-8000; www.dteenergy.com W. Fort St., Detroit 48233-9998 20 1401 (313) 226-8678; www.usps.com

W. North St., Chelsea 48118 23 201 (734) 475-1361; www.jiffymix.com Maplelawn Drive, Troy 48084 24 1795 (877) 471-7100; www.SuburbanCollection.com E. Lafayette Blvd., Detroit 48226 25 600 (313) 225-9000; www.bcbsm.com

Public university and health system

Tier-one automotive supplier

Multi-specialty physician group practice

County government

Testing, inspection and certification

This list of Washtenaw County employers encompasses companies headquartered in Washtenaw, Oakland, Wayne, Macomb or Livingston counties. Number of full-time employees may include fulltime equivalents. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available.

B Figures are FTE counts from the Center for Educational Performance and Information. C Crain's estimate. D Company estimate. E To be suceeded by Matti Shem Tov in the third quarter of 2017. LIST RESEARCHED BY SONYA D. HILL

C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 1 1 , 2 0 1 7

THE WEEK ON THE WEB

RUMBLINGS

Moroun company permit sets stage for battle of the bridges

An autonomous test drive for Bedrock

SEPTEMBER 1 - 7 | For more, visit crainsdetroit.com

anada’s transportation agency has given conditional approval to billionaire Manuel “Matty” Moroun’s Detroit International Bridge Co. to build a longsought new Detroit River bridge that would replace the aging Ambassador Bridge. The permit sets the stage for a race between Moroun’s company and the governments of Canada and Michigan to build competing new bridges over the Detroit River following a years-long battle over control of the international border. DIBC announced Wednesday its Canadian subsidiary, Canadian Transit Co., has won approval from Transport Canada to construct a $1 billion six-lane cable-stayed bridge alongside the four-lane Ambassador Bridge, which opened in 1929. Transport Canada said in a statement Wednesday that the Ambassador Bridge would have to be dismantled within five years of a new span opening and that the bridge company would have to make improvements to local infrastructure and public green spaces in Windsor. Matthew Moroun, vice chairman of his family’s company, said DIBC has already spent $500 million in the development of land and roadway infrastructure to build a second span. The Moroun-owned bridge company has sought a twin span to the Ambassador since the early 1990s. “There have been many challenges our company has faced over the years in pursuit of this moment,” Matthew Moroun said Wednesday in a statement. “We are now tasked with the duty to construct a privately funded bridge with the hard work of thousands of engineers, steel workers, construction experts that will be employed to deliver this once in a lifetime project.” Marc Garneau, Canada’s minister of transport, said his country is still moving forward with its plans to build the Gordie Howe International Bridge, connecting an Ontario freeway south of Windsor with southwest Detroit and I-75.

BUSINESS NEWS J Kelly Services has acquired Minneapolis-based Teachers on Call, a substitute teacher staffing service, the Troy-based staffing services company announced Wednesday. Terms of the deal were not disclosed. J Como’s Restaurant in Ferndale has lost its food services license for the second time in less than a year due to food safety violations and a history of noncompliance. The popular Italian-American eatery and bar at the busy intersection of Woodward Avenue and Nine Mile Road remains open during its appeal. Como’s was notified of the action Aug. 22 through a letter from the Oakland County Health Division. Addressed to owner Antoinette Grego, it cited a “lack of active managerial control which has been demonstrated by the facility’s inability to maintain compliance with food safety standards and practices.”

DETROIT INTERNATIONAL BRIDGE CO.

A rendering of the proposed new Ambassador Bridge. The Canadian government gave signoff to it, on condition that the old bridge be demolished.

Detroit digits A numbers-focused look at last week’s headlines:

1,000

Number of wireless access points installed throughout Little Caesars Arena, provided by Comcast Corp.

1,300

Number of video monitors in the arena.

$120 million The value of the naming rights deal, over 20 years, to put the Ilitch-owned Little Caesars name on the arena.

J The 20th annual Arts, Beats & Eats over Labor Day weekend drew 7 percent fewer visitors than last year. The festival announced Wednesday that 385,000 attended over the course of the four-day holiday weekend — a drop from 415,000 in 2016. Arts, Beats & Eats lost out on about 40,000 attendees Monday night due to severe storm warnings, event producer Jonathan Witz said. J The city of Detroit and Detroit Housing Commission are again embarking on an effort to secure up to $30 million in U.S. Housing and Urban Development grant funding to redevelop the former site of the Brewster-Douglass housing projects. The Choice Neighborhoods grant would be a key financing piece in the city’s effort to redevelop the 22 acre site. J Silicon Valley investors have led a funding round of almost $1.5 million in Ann Arbor-based Akadeum Life Sciences Inc., a spinoff from the University of Michigan, to develop its technology for tissue, water and food testing. The lead investor, BioInfleXion Point Partners, specializes in early-stage life-science investments. The round was joined by other Silicon Valley and Michigan investors. J The Michigan Gaming Control Board has released more than $1 million in horse racing purse pool money held in escrow for more than two years to the Michigan Harness Horsemen’s Association and Hazel Park Raceway. The association will receive about $850,000 to cover prize purses for future races at Northville

Downs, while Hazel Park Raceway will receive about $150,000 for track operations and enhancements. J Citizens Bank has launched a new digital platform giving customers a unified look at their accounts on their online banking homepage as well as investment and portfolio guidance. Citizens said it is the first large regional bank to offer a fully integrated digital banking and wealth advisory offering.

utonomous vehicles will be shuttling Bedrock LLC employees in downtown Detroit next month in a pilot program with Ann Arbor-based May Mobility Inc. Owner Dan Gilbert announced the plan to bus staff to and from a parking structure Wednesday during an event at the Technology in Motion conference at Cobo Center. “We’re taking a square block here and testing a couple of vehicles that are ready to go,” Gilbert told the crowd. Bedrock confirmed to Crain’s that the service will run from the First National Building in Cadillac Square to the Bricktown Parking Garage at Beaubien and Fort streets. It will run along Congress Street to Beaubien Street to Monroe Avenue to Farmer and Bates streets back to Congress Street. The test run is set for Oct. 9-13, offering service to staff 7-10 p.m. for a total of 15 hours of testing. The shuttles will be manned during the test run. Financial details of the program

were not disclosed. “We are not going after government grants and things like that to be able to fund [the program],” May Mobility co-founder and COO Alisyn Malek said. The Crain’s 2014 Twenty in their 20s honoree left GM Ventures LLC to join May Mobility in April. “We are working as a business looking to gain strong customers and partners in the community,” she said. The two electric vehicles, manufactured by Medina, Minn.-based Polaris Industries Inc., are equipped with six doors for six seats, May Mobility CEO Edwin Olson told Crain’s. The startup was incorporated in January, but the team of 15 has been building robots and autonomous cars for more than a decade, Olson said. The pilot program with Bedrock marks the team’s sixth major autonomous vehicle project. “This is a huge opportunity for us, and we are really committed to making sure it goes extremely well,” Olson said.

OTHER NEWS J A Michigan legislative leader said any proposal to automatically reduce auto insurance premiums would be “dead” on arrival in the Republican-controlled state Senate. The pronouncement Wednesday from Senate Majority Leader Arlan Meekhof is a reminder of just how difficult it will be for lawmakers to tackle one of their top priorities before year’s end. Meekhof, R-West Olive, called a government-mandated rate rollback “price fixing” and said Republicans should not interfere with private transactions. Crain’s reported Sunday that Detroit Mayor Mike Duggan wants a 25 percent to 30 percent mandatory rollback in auto insurance rates as part of a reform package that would reduce medical costs to insurers for injured drivers. J The U.S. House voted Wednesday to speed the introduction of self-driving cars by giving the federal government authority to exempt automakers from safety standards not applicable to the technology, and to permit deployment of up to 100,000 of the vehicles annually over the next several years. J The city has a message for people who illegally dump trash and debris in Detroit: someone is watching. More than a dozen hidden cameras have been placed at known dumping locations across the city, helping police to make 22 arrests with warrants pending on three others, The Associated Press reported. J Detroit is set to become home to only the second indoor cycling velodrome in the U.S. in December as part of a new multisport complex from the Detroit Fitness Foundation. A bright white air dome sprang up Wednesday at I-75 and Mack Avenue. The complex, first announced in January, will be part of the city’s planned improvements to Tolan Playfield there.

TOM WEGEHAUPT/TANNER FRIEDMAN STRATEGIC COMMUNICATIONS

The Suburban Collection is the 14th business to sponsor a storefront at Junior Achievement of Southeast Michigan’s Finance Park in downtown Detroit.

Suburban opens ‘store’ at JA Finance Park

he Suburban Collection has teamed with Junior Achievement of Southeastern Michigan’s youth finance program to sponsor a high-tech storefront at JA’s downtown Detroit Finance Park. The storefront will offer students a car-buying workshop, which includes lessons about credit scores, budgeting and financing. Students can also gain insight on careers in the automotive industry, including sales and service. The Troy-based dealership group declined to disclose how much it invested into the program. “Transportation is a major part of life,” JASEM President and CEO Margaret Trimer-Harley said in a statement. “Thanks to the generous investment by The Suburban Collection, about 13,000 students will learn how to make the right transportation choices given their budgets and their needs.” The Suburban Collection is the 14th business to sponsor a storefront at the 10,000-square-foot simulated city, which includes storefronts sponsored by Detroit-based Quicken

Loans Inc., Detroit-based Ally Financial Inc. and Oakland University in Rochester Hills. Grand Rapids-based Meijer Inc. has committed to sponsor a storefront in the future, Trimer-Harley told Crain’s. “We remain committed to the communities in which we live and work,” Suburban Collection Chairman and CEO David Fischer said in a statement. “Investing in today’s youth is paramount and something we feel passionate about.” Trimer-Hartley said it costs companies $25,000 to operate a storefront each year. The storefronts allow students to learn personal budgeting through a program that simulates shopping for products and services such as insurance, home loans and electricity. Finance Park is at 577 E. Larned St., where it hosts about 13,000 students in grades 7-12 each year. It is one of five different programs JA hosts, which include entrepreneurship and workforce readiness programs. JA serves about 55,000 students each year, the release said.

A new season is starting in Detroit... Welcome home.

We salute Detroitâ&#x20AC;&#x2122;s returning expats and celebrate all who are promoting and advancing the economic, cultural and civic vitality of our region.

InterCHANGE

| 2016 Annual Report

From The Kresge Foundation 2016 Annual Report

The Next Step: Bringing Recovery to Neighborhoods Wendy Lewis Jackson an Benjamin S. Kennedy Managing Directors, Detroit Program

here is perhaps no other topic that evokes more

hood-based projects across the geography. In 2016, we

passion about Detroit’s long-term potential for revitalization than the future direction of its neighborhoods.

brought our tally of planning and project grants to nearly 40, and collected just shy of 70 new applications for the

So, years from now when we look back, the Kresge Detroit

È _ « ¶ p «_ ²¬ ďčĎĔŊ F mt ² t ² _² ¼tź¬ È«¬²

Program team wants 2016 to be recognized as the year we brought Detroit’s neighborhoods into greater focus by deepening our commitment to their healthy and inclusive recovery. Neighborhoods provide Detroit its character _ p ptÈ ² Ņ k¶² «t ¨ «²_ ² ÀŅ ² tÀ _«t ² t ¨ _mt¬ where generations of Detroiters have placed their bet on the future and made an investment for the long term.

call for applications in 2014, we’ve gained new insight into the supports that neighborhood-based organizations need to bring about transformative changes.

We’re committed to expanding opportunity so Detroit’s t k « p¬ kt tÈ² « ² t t t« À ² _² _¬ ²«_ ¬formed the downtown and Midtown areas. We’ve refreshed our strategies to double down on the building blocks of neighborhood revitalization by strengthening systems that galvanize early childhood development, support arts and culture and empower community development in neighborhoods across the city. We are unwavering in our belief that residents across the city, their block clubs and their community organizations, are the key to shaping what comes next. It is imperative that renewal in city neighborhoods be robust, far-reaching, equitable and inclusive of residents’ visions and aspirations. In this report, you will learn more about our deepened commitment to neighborhoods through the advancement of key initiatives such as Kresge Innovative Projects: Detroit, our three-year, $5 million pilot to invest in the m«t_² ¼t t t« t¬ ¨« È²¬ t _ tp t k «-

Our Kresge Arts in Detroit initiative – through the College for Creative Studies – saw another successful year supporting an arc of artistic careers. We also renewed our three-year commitment to 66 arts and culture-related institutions and organizations. This will also be known as the year we began to ensure that children are not left out of the turnaround. Kresge Early Years for Success: Detroit (KEYS: Detroit) reimagines the city’s neighborhoods by putting building blocks in place to support the development of young children and prepare them for educational success. Most important was the listening that shaped these initiatives. Community meetings arranged by partners across the city gave us new insight ² ² t « ¾ « _ p ¶«¬Ņ É¶t m ² t _²t¬² ²t«_² ¬ of existing initiatives and guiding efforts still coming. We’re passionate about supporting Detroiters and the places they live. Our past experiences have informed us and will inspire us into the future. 2016annualreport.kresge.org. media@kresge.org.

C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 1 1 , 2 0 1 7

Q&A: NIKOLAI VITTI

MARKETING & EVENTS

WITH A PURPOSE 4219 Woodward Ave. | Ste 304 | Detroit | MI 48201 | jrturnbull.com

CHASTITY PRATT DAWSEY/BRIDGE MAGAZINE

“What could be better than being home and the challenge of transforming what is perceived to be one of the lowest-performing districts in the country?,” new Detroit schools Superintendent Nikolai Vitti said.

Nikolai Vitti loves a challenge; he has one at Detroit schools By Chastity Pratt Dawsey Bridge Magazine

PURE BRAINPOWER

Last Tuesday was Nikolai Vitti’s first “first day of school” as superintendent of the Detroit Public Schools Community District. In May, when he left a job leading Duval County schools in Florida, a district nearly three times the size of Detroit’s, questions abounded. There are plenty for the problem-plagued district that has cycled through state oversight and administrators repeatedly in the past 15 years. But most questions revolve around one issue: What specifically will he do to make a real difference for families and students? Vitti, who grew up in Dearborn Heights, has spent months discussing his vision in broad terms. But Detroiters say they want specifics. Will test scores improve? Why is there such a lag in technology? What’s up with a contractor paying for a party for one of Vitti’s top administrators? Bridge Magazine readers posed more than 100 questions to Vitti on Facebook. He sat down with Bridge last week to answer some of them. The conversation was edited for brevity and clarity. Bridge: Detroit has seen two-thirds of its schools close since 2005. Will you close any schools?

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It could happen, but not in 2017-18 or 2018-19. We can’t run a district where 50 percent of the buildings are being utilized. A request for proposals is going out (in September) to do a facility review so we can start making decisions on what schools we can consolidate or close. Hard decisions will have to be made, but what we can’t do any longer is make knee-jerk decisions in isolation. In 2018-19, we’re going to start to engage the community to make some decisions. Bridge: Parents in Detroit want benefits that suburban parents have to help

them to be engaged: an app that allows them to check their students’ grades, a phone call home when Johnny misses class. Simple fixes?

It is immoral and criminal that our parents don’t have this yet. What were 10 years of emergency managers doing? There are faulty systems for everything in the district. You name it, I’ll tell you a list of inadequacies. I have a sense of urgency to build new systems and processes. That’s what I can promise. Those changes will lead to results.

A major problem is our curriculum. This year, we’re going to engage teachers and principals to implement a new curriculum next year in 2018-19. Nikolai Vitti Bridge: Water at 15 schools tested high in lead last year. Students had to drink bottled water as a result. What’s going to happen to those schools?

Our water is (now) safe to drink. But we don’t want to take a risk that something didn’t change since the last test. We’re going to move to using water coolers at those schools. Bridge: Test scores released in August show students are performing worse across Michigan and in Detroit. What are parents and teachers going to see that’s different to address this?

A major problem is our curriculum. This year, we’re going to engage teachers and principals to implement a new curriculum next year in 2018-19. Something with the highest alignment to the standards. We’re going to pick one a majority of the teachers support. SEE VITTI, PAGE 29

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VITTI

FROM PAGE 28

And we’re going to see more training for teachers in Common Core standards this year. This year, there will be more emphasis on phonics in kindergarten, first grade, second grade. In 2017-18, we’re going to use a better diagnostic test to tell what skills we need to focus on. Bridge: An online invitation to an Aug. 29 reception for Iranetta Wright, the new deputy superintendent who came to Detroit from your administration in Jacksonville, shows that a textbook contractor, McGraw-Hill, was sponsoring the event. How is that not a conflict of interest?

I learned it was going to be sponsored by McGraw-Hill, and we discontinued that. Instead, we (used) private dollars from The Skillman Foundation to fund the reception. On the surface, there’s nothing illegal with (McGraw-Hill) sponsoring a reception. Vendors often sponsor events in districts outside of Detroit. Bridge: So why turn away McGrawHill’s sponsorship money?

In the context of Detroit, we don’t need to create the perception that there’s any wrongdoing and we also don’t need to give doubt that we’re moving in a different direction. There was nothing corrupt about it, but that doesn’t mean strategically the sponsorship was the right thing to do as we’re trying to set a new tone and culture. Bridge: Do you agree that you will need some early wins on issues people care about to convince them that your administration signals a new era for the schools?

I think some quick wins have been engagement. I’ve sent five emails directly to teachers. I ask people, “What do we need to do?” I think they found that refreshing. We’ve had more than a dozen meetings about developing a strategic plan, some completely done in Spanish. When has that happened before? Ivy Bailey (president of the teachers’ union) can pick up the phone and call me directly, and not have to go through someone else. I can call her. I think that’s new. I think an early win was this collective bargaining agreement with the teachers. The district a year ago just wanted to do $1,000 bonuses. We got an investment of $8 million (7 percent pay raises over two years). Mov-

ing teachers from central office to classrooms was a win. A short-term win will be filling the teacher vacancies. Just not having problems with paychecks will be a win. Bridge: Vocal grassroots activists such as Helen Moore with Keep the Vote No Takeover who have criticized (and sued) the district for decades wonder if you are listening to them or to politicians.

If not for leaders like Helen, I wouldn’t be here. It’s due to what they did to get rid of the emergency manager and get an elected board (restored in 2016). What I commit to is creating a space to listen or say when I was wrong, but also to stand up and say when I disagree. Hopefully that will lead to trust. Bridge: Detroit is on the low end of per-pupil funding statewide. This year, it will get $7,670 per pupil while funding in Metro Detroit ranges from $7,631 to $12,124 per pupil. Does that funding set up the school district to fail?

I can’t argue that. That is part of the critique, but not one I am going to lead with because our own house needs to be shaped up. I can’t make the argument (for more money) until we have equity in programs across the district, until we have a curriculum that’s aligned to the standards, until my departments have lineitem budgets. We have to fix everything internally first and then tell them “If you want to go further, then you (the state) will have to fix things.” I can’t ask for more money if I can’t pay teachers on time. For politicians who don’t believe in Detroit or public education, it gives them an easy out. Bridge: You moved your four kids from Florida to live close to their grandmother, your mother. You have a five-year contract, longer than any school leader this system has seen in a generation. Do you want this job for the long-term?

Some people have said, “Your next job is U.S. Secretary of Education, because you’re going to do great things in Detroit.” Honestly, what could be better than being home and the challenge of transforming what is perceived to be one of the lowest-performing districts in the country? I’m home connected to family for the first time in 22 years, I’m in a city I love with a board that’s supportive. What else could I want? I’m in it for the long term because in five years, I don’t think I’ll be at a point of satisfaction because there’s so much work to be done here.

LARRY PEPLIN

New Detroit schools Superintendent Nikolai Vitti talks with the press at an event in May.

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CALENDAR WEDNESDAY, SEPT. 13 September Economic Development Forum. 8-9:30 a.m. Troy Chamber of Commerce. Speaker: David Johnson, vice president of Customer Service and Economic Development, DTE Energy, on economic development initiatives. Rehmann, Troy. Free, Troy chamber members; $10 nonmembers. Contact: Jessica Hruska, phone: (248) 641-1606; email: jessica@troychamber.com; website: troychamber.com/ events/september-2017-economic-development-forum/

THURSDAY, SEPT. 14 Dealing with Difficult People. 8-9 a.m. SE Troy Affinity Group. Social media and millennials within the GenX/Y/Z work environments are compounding and complicating an already-delicate, and age-old, yet-unsolved issue: dealing with difficult people. Three techniques are provided which can give a new perspective and help to navigate the circumstances difficult people place in the workplace. Speaker: Ruth Davis. Walsh College Troy Campus. Free. Contact: Brenda Meller, email: bmeller@walshcollege.edu Washtenaw Economic Club Luncheon. 11:30 a.m.-1:30 p.m. Washtenaw Economic Club. What will the world look like in five years? Journalist and innovation speaker Leah Hunter draws on her research and background as a corporate innovation consultant for companies like Apple, Pepsi and Cisco. 4800 E. Huron River Drive, Ann Arbor $77.50 nonmember. Phone: (765) 677-5060; email: washtenaweconclub@ wccnet.edu; website: washtenaweconclub.org

UPCOMING EVENTS

WHEN YOU INVEST IN THE COMMUNITY, THE RETURNS ARE GUARANTEED. At Huntington, we know how important it is to give back to the community. After all, we do more than just work here – we live and raise our families here too. And after everything this community has done for us, we’re just happy to be able to return the favor.

The Huntington National Bank is an Equal Housing Lender and Member FDIC. ® and Huntington® are federally registered service marks of Huntington Bancshares Incorporated. Huntington.® Welcome.TM is a service mark of Huntington Bancshares Incorporated. ©2017 Huntington Bancshares Incorporated.

Ford Motor Company Day. 11:15 a.m.-1 p.m. Sept. 18. Adcraft Detroit. Featuring CNN’s Anderson Cooper. $50 Adcraft members; $75 nonmembers. Ford Conference Anderson Cooper & Event Center, Dearborn. Website: adcraftdetroit.com/events CEO Breakfast: Tony Michaels, President and CEO, The Parade Company. 8-9:30 a.m. Sept. 19. Troy Chamber of Commerce. A behindthe-scenes look at America’s Thanksgiving Parade. HilTony Michaels ton Garden Inn, Troy. $24 Troy chamber members; $34 nonmembers. Website: troychamber.com/events/ceo-breakfast-tony-michaels/ Inside the CEO Mind. 8 a.m. Sept. 19. Detroit Regional Chamber. American Jewelry and Loan’s Leslie “Les” Gold and Seth Gold will share their perspectives as business owners and reality television stars. The Golds will discuss how their company separates itself

Les Gold

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from competitors. American Jewelry and Loan, Detroit. $30 members; $50 nonmembers. Contact: Marianne Alabastro, phone: (313) 596-0479; e-mail: malabast@detroitchamber.com; website: detroitchamber.com/events/ 2017 Entrepreneur and Small Business Conference: Pathways to Success. 8:30 a.m.-4:30 p.m. Sept. 22. South East Michigan Entrepreneurs Association. Speakers include: Ryan Mack, CNN Commentator, Irene Spanos, director of Economic Development and Community Affairs Oakland County, and Edward Foxworth, Foxworth Marketing Group. Event also includes panel discussions, breakout sessions, breakfast, lunch and networking opportunities. University of Phoenix Southfield Campus. $49 until Sept. 8; $59 after Sept. 8 until Sept. 20; $79 late/onsite registration. Email: administrator@semea.info; website: semea.org/ Reinventing...not Retiring. 5:30-7:30 p.m. Sept. 27. Inforum. Many people spend years anticipating retirement. But as that time approaches, this question arises: What now? A panel of retired high-level executives who have charted very different paths includes: Patti Griswold, who retired in March from Comerica Bank, where she held several senior leadership roles; Nancy Hickey, who retired in 2014 as senior vice president and chief administrative officer of Steelcase Inc.; Maria Leonhauser, who was a journalist for several publications, including Time and People and later worked in public relations, retiring as an equity partner and president of Franco in Detroit; Lisa Payne, who retired vice chairman and CFO of Taubman Centers Inc. and now serves as a director of three NYSE companies. Moderator: Julie Green Topping, who had a 38-year career supervising and working with reporters, editors and production staff at the Detroit Free Press. $80. Townsend Hotel, Birmingham. Website: inforummichigan.org Informational Meeting for Women Entrepreneurs. 5:30-7 p.m. Sept. 28. Michigan Association of Female Entrepreneurs. Learn about the nonprofit’s current and future initiatives, entrepreneurship training and leadership development programs, business resources and support services. Free. Orion Township Public Library. Contact: Tonya McNeal-Weary, phone: (844) 490-6233; email: info@ mafedetroit.org; website: mafedetroit. org To submit calendar items visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events.

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NFL players strike 30 years ago an odd footnote for Lions By Bill Shea bshea@crain.com

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As summer wound down in August 1987, Todd Hons found himself selling cars. Fords, specifically, in suburban Phoenix. A little over a month later, he was still working for the Ford family — as quarterback of the Detroit Lions. This season marks the 30th anniversary of the 24-day NFL players strike, a strange odyssey of picketing starters replaced by off-the-street players that’s an important footnote in the league’s history. Hons’ story is also a fascinating counterpoint to an era in which Matthew Stafford just became the highest-paid player in the NFL. Hons was four years removed from quarterbacking Arizona State over Oklahoma in the 1983 Fiesta Bowl, which was followed by winning a Grey Cup a year later as a backup with the Canadian Football League’s Winnipeg Blue Bombers. Then came a phone call in September, from Bob Baker, who had been Hons’ offensive coordinator at Arizona State. Baker in 1987 held that same job with the Detroit Lions under head coach Darryl Rogers. The NFL’s players were about to go on strike, and the Lions needed a replacement quarterback for Chuck Long. Rogers, who had coached Arizona State when Hons was there, wanted his old college quarterback. “They called me and the next day I was on a plane. It was pretty quick. We had maybe a week of practice and getting acclimated,” Hons said. Hons would spend a month with the Lions, starting all three games played by Detroit’s replacement players in October 1987. He quarterbacked a pair of losses in front of tiny crowds at the Pontiac Silverdome that were sandwiched around that Holy Grail of Lions phenomena: A victory over the Green Bay Packers at Lambeau Field. Hons is just one of five Lions quarterbacks — the others are Rusty Hilger (1988), Rodney Peete (1990), Erik Kramer (1991) and Matthew Stafford (2015) — to beat the Packers at Lambeau in the past 30 years. The 1987 players strike saw the league cancel the season’s third week of games and then scramble to assemble a motley collection of ex-college, USFL, and arena league players, some with almost no football experience at all, to fill rosters for three games. Fans stayed away, especially in Detroit, but enough were curious or diehard enough elsewhere that some games saw more than 30,000 attendees. The players struck over several issues including free agency, drug testing, contract minimums and guarantees, artificial turf safety and pension fund contributions by owners. However, a lack of strategy by the union led to fractures in the ranks and eventually more than 15 percent of the 1,585 players crossed the picket line. The strike would prove to be a short-term failure for the player’s union, but the labor woes eventually led to the modern system of free agency and revenue sharing.

Todd Hons spent a month with the Lions, starting all three games played by Detroit’s replacement players in October 1987.

That system, forged over negotiations and court fights until a collective bargaining agreement was reached in 1993, combined with stratospheric growth of the NFL’s TV contracts to create the financial ecosystem that led to current Lions quarterback Stafford’s recent payday. Detroit gave Stafford a five-year, $135 million contract extension that makes him (for now) the NFL’s highest-paid player. Hons, meanwhile, made $9,000 for his month of work as a Lions quarterback in 1987. “It was plenty of money at the time,” he said. Most replacement players earned a few thousand dollars a game. The striking players in 1987 averaged $230,000 in salary for the season. Detroit’s regular starting quarterback that season, second-year player Chuck Long, was to make about $425,000 that year. This season, NFL players will average about $2 million a season in salary. For his part, Hons doesn’t resent the stratospheric difference in salary. He thinks Stafford deserves the money. “All the power to him. (Players) put themselves in harm’s way all during the season and if the Fords think he is worth it, I say ‘congrats, Matthew Stafford,’” he said. Hons knows the physical toll the game takes on players like Stafford. “I was pretty beat up. I had shoulder and knee problems. Those offensive lines couldn’t pick anybody up. It was a free-for-all. I was on the injury report every week,” he said. All the replacement players were stashed in the Kingsley Inn on Woodward Avenue in Bloomfield Hills, Hons said, and the Lions would bus them to and from practice and games — which kept them from having to interact physically with striking players and their allies on the picket line outside the Silverdome. “We had no interaction (with the picketing starters). We’d come in on the bus, and they’d be out there in their Mercedes protesting,” Hons said. “I think out at a bar, some players got into a scuffle one late night downtown. Other than that, it wasn’t much.”

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“It was exciting. I had played major college ball so I was used to the stadiums. I didn’t let that part get to me. Those crowds were smaller than the ones I played for in college.” Todd Hons

Many of the striking players were bitter by the time the strike ended. Gary Danielson, who was a Lions quarterback from 1976-84, crossed the picket line in the strike’s final week for the Cleveland Browns and threw four touchdowns in a 34-0 rout at Cincinnati. He was critical of the players’ union in a story about the strike published Oct. 16, 1987, by the L.A. Times. “The timing was bad and the strategy was bad. The atmosphere in the United States right now is pro-business and anti-union. As a result, we lost. We also lost friendships, team unity and fans,” he was quoted as saying. Thirty years later, Hons reflected on his month with the Lions fondly. “It was exciting. I had played major college ball so I was used to the stadiums. I didn’t let that part get to me. Those crowds were smaller than the ones I played for in college,” he said. “I just looked at it as an opportunity to play.” Hons has especially fond memories of beating the Packers in front of 35,779 fans on the road. “Playing at Lambeau Field was pretty special. It was a nice crisp day. It was great. It was kind of a conservative game, I guess you could call it. We tied it with a fourth-down pass to Darrell Grymes. That was pretty exciting,” he said. That touchdown was followed by an exchange of field goals that led to overtime, where the Lions would win 19-16. “It was a great experience. I think about it now, I wish I would have enjoyed it a little more,” Hons said. Hons would finish the day completing 19 of 39 passes for 224 yards and the one touchdown. He also ran three times for 38 yards. For his three weeks of work, Hons would finish with 43 completions on 92 attempts for 552 yards, five touchdowns, five interceptions and a 61.6 quarterback rating. He was sacked nine times and hit countless others. The Lions had started the 1987 season losing their first two games before the strike, and the replacement Lions got off to an inauspicious start. Hons and his teammates blew a 17-0 lead in the first game, losing 3127 to the Tampa Bay Buccaneers in front of a nearly invisible crowd of 4,919 at the 80,000-seat Silverdome.

Detroit, after all, is the most union of towns — and even moreso then — so the small crowd wasn’t a surprise. Neither was the bad football. “That’ll get you back to selling cars in a hurry,” CBS analyst and former Oakland Raiders quarterback Ken Stabler said during the game broadcast after an errant Hons pass missed an open receiver in the end zone. After the win at Green Bay, the Lions returned to the Silverdome to lose 37-14 to the Seattle Seahawks — a game marked by the picket-line crossing return of future Hall of Fame wide receiver Steve Largent for Seattle. He feasted on the replacement players, catching a team-record 15 passes for 261 yards and three touchdowns at the Silverdome that day, witnessed by just 8,310 fans. When asked why he didn’t double-cover Largent, Lions coach Rogers famously said after the game, “Why embarrass two guys when you can just embarrass one?” When the strikes ended after 24 days, Hons and his replacement teammates were let go. The Lions would finish 4-11 and last in the NFC Central Division. Hons couldn’t find another NFL gig, but did land a backup role in 1988 with the new Detroit Drive of the Arena Football League. He started a couple of games and the Drive went on that season to win the Arena Bowl at Joe Louis Arena — meaning Hons has championship football rings from a college bowl game, the CFL’s Grey Cup, and the AFL. Just no Super Bowl ring, the same as every other Lions player. Hons would bounce around for another few years, playing in Germany and elsewhere, before finally going into the mortgage business. Today, the 55-year-old Hons is a loan officer with a mortgage firm in Peoria, Arizona. Hons doesn’t have much Lions or Detroit Drive paraphernalia left. An ex-wife pawned his Arena Bowl ring, he thinks. He’s still a fan, though. “I follow football in general. I’ll always have an interest to the Lions,” Hons said. “I gave my Lions jersey to my oldest son. He’s a big Lions fan. I hope they get to the Super Bowl someday.” Bill Shea: 313 (446-1626) Twitter: @Bill_Shea19

DEALS & DETAILS

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management technology manufacturer, has an agreement with Loc Performance Products Inc., Plymouth, a manufacturer of large CNC machines components, fabricated structures and assemblies. Exlterra will produce its patented ultra-light drill rig with Loc. Websites: exlterra.com, locperformance.com.

NEW PRODUCTS J Ziebart International Corp., Troy, has introduced Ceramic Z-Gloss paint coating, a protective ceramic, layered coating that includes enhanced gloss characteristics. Website: ziebart.com.

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About 200 people gathered in Clark Park outside of Western International High School in southwest Detroit Tuesday afternoon to protest President Donald Trump’s decision to end Deferred Action for Childhood Arrivals.

Immigration attorneys: End of DACA could be ‘disruptive’ to employers By Lindsay VanHulle

Crain’s Detroit Business/Bridge Magazine

The Donald Trump administration’s decision to rescind protected immigration status for people who entered the U.S. illegally as children could leave companies with the difficult task of having to fire dedicated workers when the program ends, Detroit-area immigration attorneys said Tuesday. That’s because there are few avenues for young undocumented immigrants who obtained federal work permits under the Obama-era Deferred Action for Childhood Arrivals program to get legal status, the attorneys said, and companies are not allowed to employ anyone who is not authorized to work in the United States. The full ramifications of the White House decision to phase out the DACA program within six months aren’t yet known. For now, employers are encouraged to review their employees’ I-9 forms and — if they aren’t already — track the expiration dates of any DACA recipients’ work permits, said Mike Nowlan, an attorney and co-leader of the immigration practice group for Clark Hill PLC in Detroit. Nowlan said he thinks the Trump administration’s decision to wind down the protected status program is “devastating” for the recipients and “will be disruptive for certain employers.” President Barack Obama created the program through a 2012 executive order that shielded undocumented immigrants from deportation if they came to the United States before they turned 16. Opponents of the measure have said Obama overstepped his authority by creating the program without congressional approval and that it takes jobs away

from American-born workers. Immigration advocates say protection from deportation is necessary for people who entered the country not of their own volition, many of whom grew up attending American schools and colleges and now have jobs and pay taxes. Close to 800,000 people are believed to have DACA status nationwide. The program prevents recipients from being considered for deportation for two years, which can be renewed. To qualify, an immigrant may not have felony convictions or significant or multiple misdemeanor convictions. To date, 6,430 initial requests for DACA status have been approved for immigrants living in Michigan, according to data from U.S. Citizenship and Immigration Services. More than 7,400 renewal requests have been approved for the state. The Trump administration has said requests received by Tuesday will be processed, but no new applications for DACA status will be accepted. Current recipients will be allowed to work until their authorization expires. “What many of our employer clients have said is that these kids have been so hardworking, they’ve just been a great benefit to our economy, they’re paying taxes, they’re not committing crimes,” Nowlan said. “What do they do? Do they wait around to get deported? (The federal government) has all their contact information. ... These are people they can go and get. I don’t know if they have the manpower to go collect 800,000 people.” Aimee Guthat, a senior attorney focused on corporate immigration and compliance for Fragomen, Del Rey, Bernsen & Loewy PLLC in Troy, SEE DACA, PAGE 35

“What many of our employer clients have said is that these kids have been so hardworking, they’ve just been a great benefit to our economy, they’re paying taxes, they’re not committing crimes.” Mike Nowlan

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DACA

specific skills in the local job market.

FROM PAGE 34

Other politicians

said she would encourage employers to begin circulating information to all employees about recommended actions — while avoiding running afoul of anti-discrimination laws by singling out employees the employer thinks may be DACA recipients, even if the intent is to help. “It’s probably going to be a much bigger hit than most employers expect,” Guthat said. “Try to disseminate as much credible information as possible. Provide sort of a one-source location that their employees can go to anonymously, if they prefer, to get the most recent updates. We’ll be sending instructional materials to all of our clients as everything unfolds.” Michigan’s economy has benefited from the contributions of immigrants, according to a recent study by the Michigan Economic Center, an Ann Arbor-based think tank. Legal foreign-born residents in Michigan have increased to about 650,000 over the past 15 years, while the state’s native-born population has declined, the report found. And although immigrants make up just 6 percent of Michigan’s population, they are 8 percent of all entrepreneurs, employing 150,000 people at 31,000 companies. And it’s not guaranteed that companies will be able to find American-born workers to fill the jobs of undocumented immigrants once their DACA status expires, Guthat said, if there are no candidates with

Politicians from both parties weighed in on the Trump administration’s decision Tuesday. Gov. Rick Snyder, in a statement, said Michigan is best when it is diverse. Rick Snyder: “Many are Many are working working toward toward success. success under the existing DACA, and for the certainty of their future Congress should act quickly to authorize and clarify their status,” he said. Agustin Arbulu, director of the Michigan Department of Civil Rights, said in a statement that he is concerned the decision to wind down DACA could lead to an increase in incidents of bias and discrimination on the basis of a person’s legal status, race or ethnicity. The department is prepared to investigate any such incident, his statement said. University of Michigan President Mark Schlissel recently told Bridge Magazine that the Ann Arbor-based university does not keep a list of students who have DACA status. “Although we follow court orders, we don’t do work on behalf of law enforcement agencies on campus,” Schlissel told Bridge. “The idea is that all of our students can pursue their educational ambitions without out-

side worries.” Some of Michigan’s representatives in Congress are calling for federal legislative action to protect recipients, including U.S. Reps. Dan Kildee, D-Flint Township; Sander Levin, D-Royal Oak; Debbie Dingell, D-Dearborn; and Fred Upton, R-St. Joseph. “For these young men and women, the United States is their home,” Upton said in a statement. “I’ve met with countless concerned individuals impacted by DACA and heard from local universities, restaurant and small business owners, as well as my farmer friends who all agree we must take care of these folks. This is

best possible outcome, said Nowlan, of Clark Hill. Since DACA was authorized via an executive order outside of the traditional regulatory process, which is slower, it could be more difficult to raise legal challenges, he said. But, he added: “I’ve been amazed at the lawsuits that have been successful in the last year when I wouldn’t have thought they’d have been able to do anything.” About 200 people gathered Tuesday afternoon at Clark Park outside of Detroit’s Western International High School in southwest Detroit to protest the order. State Rep. Stephanie Chang, D-De-

“Rather than executive order, it is the responsibility of Congress to work together on fair, rigorous and bipartisan legislation that addresses the long-term uncertainty facing these young people.” Rep. Fred Upton

why I’ve long-supported using a compassionate but accountable way to legislatively address these undocumented minors brought to our country through no fault of their own. “Rather than executive order, it is the responsibility of Congress to work together on fair, rigorous and bipartisan legislation that addresses the long-term uncertainty facing these young people,” Upton said. Having Congress take action is the

troit, who attended the demonstration, said, “Not only are we concerned about the potential impact to the families and to the youth, but also to our economy. If we are pulling out potentially thousands of young people who are employed right now what does that mean for their employers, what does that mean for the things that they are making and the things that they are doing?” — Crain’s reporter Tyler Clifford contributed to this story.

Flagstar to launch corporate foundation By Sherri Welch swelch@crain.com

Troy-based Flagstar Bancorp Inc. (NYSE: FBC) is launching a new corporate foundation to formalize its giving in Southeast Michigan and other parts of the country where it operates. The bank has named Beth Correa, senior vice president, community affairs and quality for Flagstar, as president of the Flagstar Foundation. The bank plans to contribute an initial $1 million for 2018 to the new foundation which was founded as an independent, 501(c)3 nonprofit, and to make annual contributions based on profitability after that, Correa said in an emailed statement. Grants will be focused in several areas: J Apprenticeship and Workforce Readiness, supporting training that prepares people for jobs. J Arts and Culture, supporting collaborations with community organizations. J Financial Well-Being, supporting financial literacy. J Community Reinvestment Activities, supporting nonprofits providing affordable housing, community service, economic development or rehabilitation, and stabilization for lowto moderate-income individuals, families and communities.

SCIENCE SHOWS YOU WHAT OPPORTUNITIES TO SEIZE AND WHICH ONES YOU SHOULD SKIP. Today’s automotive industry. It’s complex. It’s capital-intensive. It’s fickle. And its future isn’t clear. How do you know which moves are the right ones to make, and which ones are dead-ends that waste resources? We can help. Because at Urban Science, we know that to succeed you need the precision of a scientific approach. We see automotive sales, service and marketing in a way that no one else can. It’s science that lets us solve unsolvable problems and deliver breakthrough solutions for every major automotive manufacturer around the globe. With today’s pressure on sales, our near real-time data solutions give you a chance to read and react to the market before you miss the opportunity. So, when it’s time to make a critical decision, you can follow the conventional path and hope you made the right move. Or, call Urban Science and know that you did.

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C R A I N ’ S D E T R O I T B U S I N E S S // S E P T E M B E R 1 1 , 2 0 1 7 Washington, D.C.-based private equity giant The Carlyle Group has bought Romulus-based new- and used-vehicle transporter United Road Services Inc. UNITED ROAD SERVICES

The Carlyle Group buys Romulus-based United Road Services By Bill Shea

and southwest U.S. Today our fabulous team is on track to move north of Washington, D.C.-based private 3.5 million vehicles in 2017 up from equity giant The Carlyle Group has 1.5 million in 2012,” McCann said in a bought Romulus-based new- and statement. She’s referring specifically to Unitused-vehicle transporter United Road Services Inc. for an undisclosed ed Road’s $225 million acquisition of sum from Boston-based Charles- the auto hauling division of Billings, Mo.-based Waggoners Trucking Inc. bank Capital Partners. United Road’s senior executives, in December 2013. The move was inincluding Chairman and CEO Kath- tended to expand United Road’s opleen McCann and President and eration footprint to the Southeast COO Mark Anderson, will stay in and South Central U.S. and additiontheir roles, the companies said in a al capacity in the West. It already had joint statement. “The balance of the operations in the Northeast, Midwest current management team will re- and West. The deal added 1.2 million more main in place,” the companies said. United Road moves cars for new vehicles to United Road’s annual and used-car dealers, rental fleets, hauling and gave it a fleet of 1,500 auctions, individuals and reposses- tractors operating out of 75 locations, sions. A specialty division, Pilot 25 of which came from Waggoners. Transport, handles test cars, celebri- The fleet is both corporate and indety and entertainment industry vehi- pendent-driver owned. United Road cles, and other high-priced cars and has about 1,700 employees. Over-the-road vehicle hauling saw trucks. It has 10,000-plus clients and moved 3.5 million vehicles last year. a renaissance after the 2008-09 recession. Railroads typically have moved Its chief client is General Motors Co. Carlyle Group (NASDAQ: CG) was 70 percent of vehicles for automakfounded in 1987 and reported $2.2 ers, industry experts have told Crain’s, and that “Our strategic growth hauling is largely long-distance platform was really work. Trucks are used for local turbocharged in late and regional 2012 when we were hauling. acquired by Amid the recession, railCharlesbank.” roads shifted to Kathleen McCann more oil industry and other billion in 2016 revenue. Now one of work, which fueled the growing need the largest investment firms globally, for additional capacity in the Carlyle says it has $170 billion in as- car-hauling segment of the trucking industry. United Road responded to sets under management. United Road ranked 10th in Crain’s the demand not only by expanding 2016 list of fastest-growing companies its footprint, but also by spending $50 by revenue, increasing to $500 million million for 200 new trucks in 2011. “United Road’s growth in recent in 2016 from $275 million in 2013. Tuesday’s sale is the third time years is a testament to its superb United Road has changed hands leadership and quality customer service. To our partnership with Kathsince 2007. Charlesbank bought the hauler in leen and her team, we’ll bring Car2012 for an undisclosed sum from lyle’s deep transportation experience Los Angeles-based private equity and network, which we believe will firm The Gores Group LLC, which contribute meaningfully to United had bought United Road for $110 Road’s continued growth trajectory,” million in November 2007 from Carlyle Managing Director Adam Charterhouse Equity Partners III LP Glucksman said in a statement. While the companies are not disand KPS Special Situations Funds LP. United Road was founded in 1997 closing the sale price or deal strucin Albany, N.Y. A steady series of ac- ture, they did say equity for the purquisitions led the company to base chase comes from the $2.4 billion Carlyle Equity Opportunity Fund II, its operations in metro Detroit. “Our strategic growth platform was which invests in middle-market really turbocharged in late 2012 companies in the U.S. United Road and Charlesbank when we were acquired by Charlesbank. They provided the capital, sup- were represented by Toronto-based port and encouragement to expand RBC Capital Markets and Chicaour reach and capabilities both or- go-based William Blair & Co. Carlyle ganically and through the acquisition was advised by Chicago-based Kirkof a major competitor, which gave us land & Ellis LLP as legal counsel and a deeper presence in the southeast Ernst & Young as financial adviser. bshea@crain.com

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Wayne State University Professor Steve Kahn kicks off a morning Math Corps lesson with a little humor. “There are kids who come to us who need to smile right now, today,” says Kahn about the Detroit middle and high schoolers enrolled in the tuition-free summer mentoring program.

Photo by Brianna Kelly | Detroit map by Sylvia Kolaski

Warriors reach out Wayne State University understands that often the community is the best classroom Stories by Leslie D. Green | Crain Content Studio M. Roy Wilson, who over his career worked as dean, vice president, president and chancellor at four different universities, had what he called a “plum job” at the National Institutes of Health when he contemplated returning to academia as a university president. If he were going to make the move, the school had to meet his requirements. It needed to be a public, urban, research university. It needed a large medical school. And it needed an intimate connection with its community. Wilson found all of that at Wayne State University. Programs like Street Medicine Detroit, TeachDETROIT, Math Corps, the Free Legal Aid Clinic and the Center for Urban Studies serve the city’s neighborhoods while providing hands-on learning opportunities for Wayne State’s more than 27,000 students. “I came because of the programs,” says Wilson, who became president of the nearly 150-year-old school in 2013. “We have a lot of responsibility to improve the city in ways in which we have some level of control and influence. That includes our public safety officers making neighborhoods safer, and every one of our schools being involved in some deep way.” Wilson says most of the school’s neighborhood outreach programs grow organically from the

university’s 13 schools and colleges and 400 student organizations. For instance, TeachDETROIT pairs clinical teacher training with community outreach and mentoring. “There was no meeting saying ‘this is what we should do and here are the resources, let’s go out and do this program,’” Wilson says. “The fact is, the College of Education recognized the shortage of teachers in the city was an issue and there needed to be innovative teaching programs. They designed this program themselves.” It’s all part of what attracts students to Wayne State, he says. Students have an opportunity to not just read about the major challenges in society’s urban cores but to be a part of the solution and address those challenges in a hands-on way. Similarly: ■ A group of medical students learned about the street medicine movement and crafted a model for Detroit that they took to faculty. Today, Street Medicine Detroit is one of 100 WSU medical school outreach programs, working with area nonprofits to provide medical care and housing solutions to homeless individuals. ■ University students don’t just help teach math at Math Corps, created by faculty in the Math Department: They help change lives. The middle and high school mentoring and enrichment program is encouraging kids — and boosting test scores

across the city. ■ Started by Wayne State University Law School students, the Detroit Free Legal Aid Clinic helps put students into the courtroom while working to remove barriers to justice for the area’s low-income and elderly populations. Students draft wills and estate plans; handle custody, consumer protection and landlord/ tenant cases; explain legal rights; and sometimes litigate in court. ■ The Center for Urban Studies develops and models programs that help make Detroit neighborhoods safer. It facilitates regular conversations between local police, the community and volunteers to fight and prevent crime. Other programs include Make Your Date, a partnership with the National Institutes of Health to dramatically reduce infant mortality in the city; the Transnational Environmental Law Clinic, which partners with the University of Windsor to teach students how to successfully affect environmental policy in state and federal government; and Office of Adult Literacy, which teaches adults with low reading skills. “A lot of urban communities are challenged in many ways. There’s a responsibility that a public, urban university has toward its surrounding community,” Wilson says. “Wayne State is very much aware of its relationship with the city of Detroit, and we take a lot of pride in it. “Being part of the community is part of who we are as an institution.” Turn the page to read more about how Wayne State University connects with neighborhoods across Detroit.

DETROIT CONNECTIONS Sponsored by Wayne State University

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“There’s a responsibility that a p has toward its surrounding co Wayne State student Tiffany Ward prepares for the classroom through TeachDETROIT.

Future teachers where they’re most needed: in Detroit classrooms When aspiring teachers enter university this fall, they will read textbooks and write papers about teaching and take exams on the subject. Later, after six to 12 weeks of student teaching, they will attempt to apply what they learned in classrooms with real children — many of whom often come from different backgrounds than them. However, theory alone is not enough to help new teachers get through a lesson plan, diagnose a child’s reading problems or understand how to group children in their classrooms, says Jennifer Lewis, associate professor of mathematics education at Wayne State University. So, in 2015, Lewis started WSU’s TeachDETROIT, a 15-month residency program facilitating teacher development in Detroit using hands-on classroom experience. The university holds classes at six partner Detroit elementary schools, where future teachers serve alongside a cohort of residents and work directly with students’ families. “Enacting all of that theory is challenging, especially when you are all by yourself,” Lewis says. “Our classes are completely clinical. From the first day, you are teaching in a Detroit school. High-quality teachers — more than curriculum, more than a stellar leader — are the most important component to creating great schools.” And every school, she says, needs to be great in order to revitalize the city of Detroit. The school day starts with professors teaching a method and a concept. Immediately after, the students plan a lesson and then teach children while their classroom partner records them. Afterward, their peers and professors review the video and make suggestions. “There’s immediate feedback. I feel like it’s how all teaching programs should be,” says Alexander Sherer, a recent WSU grad with a master’s in elementary education and a specialization in autism spectrum disorder. “It was kind of nerve-wracking being on display. But it helps you get comfortable with the group, and being on display is an essential part of teaching,” says Kaitlyn Stahl, a recent WSU graduate with a master’s in elementary education and specialization in integrated science.

The classroom is only part of the TeachDETROIT program. Learn what happens when the future teachers visit their students’ families at crainsdetroit. com/WSUConnections.

Math Corps goes beyond multiplication, division in connecting with kids The day starts with breakfast, though that’s not what gets the kids going. Enthusiastic hugs, high fives and groan-worthy riddles set the tone as staff celebrate the students and one another during morning assembly. No one needs to tell them when it’s time to sit and listen. They just do. That’s because they know math isn’t the focus of Math Corps, a 25-year-old, tuition-free, six-week summer mentoring and enrichment program for Detroit students. Professor Steve Kahn, director for Wayne State University’s Center for Excellence and Equity in Mathematics, started WSU Math Corps with Leonard Boehm, who also teaches discovery classes in advanced math to fifththrough eighth-grade Detroit students. “This is a program that tries to make a difference for kids in Detroit,” Kahn says. The difference is that the core curriculum involves teaching kids that they matter. “It’s largely a social justice program. We started with the notion that it’s about loving and believing in kids. The kids learn they will get a different vision, one where kindness rules and where you love and support one another. Then we want them to be healthy, and then we want them to have fun,” Kahn says. “A central part of the Math Corps is humor. There are kids who come to us who need to smile right now, today. And then,” Kahn adds, “since we’re mathematicians, we also teach them math.” With a credo of kindness, courage and integrity, Math Corps serves 400 students — 120 seventh- through ninth-graders and 80 high schoolers (10th through 12th

graders) at all math levels. Proof that the program works is in comparing the pre- and post-exams: students average 30 percent in their pre-tests; after the six-week summer program, they average 90 percent. In 2016, the National Science Foundation awarded Math Corps nearly $3 million to replicate its summer program nationwide. “Soon, Math Corps will serve all kids in need,” Kahn says.

What do jazz hands have to do with learning math? Read more about Math Corps at crainsdetroit.com/ WSUConnections.

Street Medicine Detroit bridges gap between medic Jedidiah Bell isn’t a doctor. However, he and other Wayne State University medical students volunteer thousands of hours each year to save lives in Detroit communities. Bell, who’s from Zimbabwe, knows how poverty affects health. He says he joined WSU’s Street Medicine Detroit last year because members serve some of the city’s most vulnerable residents — the homeless. There are more than 16,000 homeless people in Detroit, and Street Medicine — one of 100 outreach programs at the medical school — attempts to reach them at

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Westborn Market CFO Kenneth Lundberg, left, meets with Kevin Szachta, Huntington Commercial Relationship Manager at the company’s Livonia store.

In the market for change

Photo by D. Ashley Photography

It turns out the right bank knows a lot about where to keep your company’s money Story by Marcia Lerner | Crain Content Studio Westborn Market, a specialty food seller with four locations in Southeast Michigan, was started in 1963 by brothers George and Andy Anusbigian. As the next generation took over the business and opened additional locations, it did so while making do with a banking relationship that was decidedly uninspiring. Soon, the family recognized it was time to ‘move into the new millennium.’ Huntington Bank came to meet the Anusbigians after the bank was recommended to the company by a trusted advisor. The bank’s first goal? To help Westborn modernize. “They had treasury services,” said Kevin Szachta, the relationship manager at Huntington who works with Westborn, “but they were antiquated. They had not even had a treasury review for over a year prior to us getting involved. So in addition to a better loan structure, with the ability to grow, they also wanted to streamline their process and work with existing technology, something they weren’t currently doing with their former bank.” Huntington got to work not only on

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providing financing, but also on analyzing Westborn’s systems and processes. In the course of its analysis, Huntington learned that 45 percent of Westborn’s sales were in cash, and the process of counting that cash at night was wasting both time and money. “We learned it was very much a manual process for depositing of checks and for processing their cash,” Szachta said. He turned to Erica Roots, a treasury management sales advisor at Huntington, who recommended that Westborn consider a safe-cash manager, also known as a smart safe. “The safes themselves accept cash—some people think of it as the reverse of an ATM,” Roots said. “The cash is safe and secured. The machines themselves transmit funds, which are then sent electronically into the bank account daily.” For Westborn, which was already pleased with the new banking relationship, the safe-cash manager was a game-changer. “The safe not only works as a security mechanism, it also works as a system that helps check out each individual cashier and balance SPONSORED BY:

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“They’re banking for their customers, which is what I had lost with my previous bank. They actually heard what we were saying.” Mark Anusbigian, President, Westborn Market their drawers,” said Mark Anusbigian, president of Westborn. “It’s saved us literally thousands of dollars annually because it’s cut down the need for a second person to be there for the checkout period. Then it’s also cut down time we take when we clear out the entire day. The process is a lot easier when we balance our books, because it’s all there in the safe.” The new cash management system helped the Westborn-Huntington partnership flourish. Anusbigian thinks the success of their interaction has to do with Huntington’s willingness to understand his business’s needs, and provide it

with a wide offering of solutions, including cash management, banking services and insurance. As for the safes, they’ve been in place for about five years with no maintenance issues. Westborn continues to rely on them, paying a reasonable monthly fee. All in all, the new banking relationship has changed how Westborn works. “They changed banking in our opinion,” Anusbigian says. “They’re banking for their customers, which is what I had lost with my previous bank. They actually heard what we were saying. I’m a big fan.” The admiration is mutual. “At Westborn, they don’t look at us as transactional providers, but as a relationship that goes both ways,” Szachta says. “They are already set up for that next generation of succession. You see about how they were basically raised the right way, they’re all hard workers and a pleasure to work with. We consider them friends of Huntington.” For more information about Huntington Bank, contact Brian Marshall at 248-2443607 or at brian.marshall@huntington.com.

9/7/17 5:19 PM

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // S E P T E M B E R 1 1 , 2 0 1 7

A GOAL AND A REBOUND

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You know. The Motor City has both fueled and felt the power of the Laker Effect. Many of our students not only hail from the Detroit area, but they also return there: as analysts and engineers, biochemists and health professionals, as leaders in business and leaders of communities. Support them. Support us. And see the power of what can be.

The other Ilitch strategy to gain support was to make the project much more than just an arena. Instead, they unveiled a bold pitch that was no less than the creation of of an entire neighborhood. Shortly before the arena bill vote in December 2012, Olympia unveiled its plan for a $650 million project that included not only the arena bowl but also surrounding development of residential, retail, office and green spaces. The Ilitches had begun quietly gathering the land in the early 1990s with the intent of using the plots for an arena. They eventually decided to make it a much broader effort. The strategy of a wider project helped Olympia burnish the playbook employed by arena and stadium developers everywhere: Sell the project with the promise of new jobs and increased economic activity that fills tax coffers and pocketbooks. With the Olympia project, it would be on an even larger scale in a city starved for new development. And they promised jobs and contracts would go to city residents and locally based companies, pledges they say they have stuck to with some exceptions. Job training and internships are part of the construction effort, too. In July 2014, the Ilitches made public their far wider District Detroit plan of 50 city blocks remade with new investment. They paid University of Michigan professor Mark Rosentraub for a report that estimated the mammoth arena project would create 8,300 construction jobs and 1,100 permanent jobs, along with $1.8 billion in economic impact for the city, region and state. Decades of academic study nationally, however, cast doubt on the economic sense of public subsidies for sports stadiums. Such caution didnâ&#x20AC;&#x2122;t affect the political will to give Olympia the money it sought. The promise of developing a blighted section of the city was irresistible. â&#x20AC;&#x153;Over the years (the Ilitches) were able to assemble enough land to think about where significant infill developments could occur,â&#x20AC;? Larson said. â&#x20AC;&#x153;Little Caesars Arena is filling a

OLYMPIA DEVELOPMENT

The total up-front public cost of the arena so far is $324.1 million. Olympia is financing $538.8 million. The project was estimated to create a $1.8 billion impact for the city.

void that was going to take a very long time, tens of years, to infill with traditional development. There was this void and nothing was going to link (downtown and Midtown) as impactfully and quickly as the arena.â&#x20AC;? Stitching together two parts of the central business district with a sprawling mixed-use project helped sell political and civic leaders on the project, Larson said. â&#x20AC;&#x153;The return on investment, I think, ultimately, is much more significant and will be realized much faster than if it were just a standalone sport facility,â&#x20AC;? Larson said. The familyâ&#x20AC;&#x2122;s business reputation also helped their quest for public subsidies. The Ilitches have been long praised for relocating their Little Caesars pizza chain headquarters downtown in 1989 while other businesses were leaving the city. The reality is mixed: They put a lot of money into downtown investments, but also garnered criticism for their stewardship of some blighted properties. Plans for some new developments fell through, too, fueling boos from some. But overall, theyâ&#x20AC;&#x2122;ve been heralded for their accomplishments, which include renovation of the Fox Theatre and construction of Comerica Park and MotorCity Casino and Hotel. Theyâ&#x20AC;&#x2122;re currently building a $150

million new headquarters for Little Caesars next to the Fox. The Ilitches also were able to rely on the Red Wingsâ&#x20AC;&#x2122; history for support. Mike Ilitch bought the club for $8 million in 1982. It would go on to win four Stanley Cups during a playoff streak that lasted 25 years. Winning fuels goodwill. The arena strategy has worked so well for the Ilitches that they successfully got city approval for another $34.5 million worth of DDA bonds to pay for retrofitting the arena to accommodate the Detroit Pistons, who announced in November theyâ&#x20AC;&#x2122;d relocate to Little Caesars Arena to be a tenant alongside the Red Wings. The Ilitches havenâ&#x20AC;&#x2122;t faced the sort of resistance Dan Gilbert is facing in Cleveland, where heâ&#x20AC;&#x2122;s seeking $70 million in local aid for a $140-million upgrade to Quicken Loans Arena, where his Cleveland Cavaliers play home games. Public and political opposition to Gilbertâ&#x20AC;&#x2122;s plan reached the Ohio Supreme Court, which ruled last month that the issue must go to a public referendum. â&#x20AC;&#x153;Community-based push back has been really muted here. It hasnâ&#x20AC;&#x2122;t had the same resonance youâ&#x20AC;&#x2122;d find in other places,â&#x20AC;? Boyle said. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

Timeline: Where they played, continued June 1, 2011: Tom Gores, the California private equity billionaire and Flint native, buys the Pistons and Palace of Auburn Hills for $325 million in 2011 Gores from Davidsonâ&#x20AC;&#x2122;s widow and group of 27 minority owners. The deal includes DTE Energy Music Theatre and the contract to manage Meadow Brook Amphitheatre for Oakland University.

gvsu.edu/SupportLakerEffect

Dec. 4, 2012: Ending years of speculation, the Ilitch family formally announces a plan to build an arena as part of a $650 million mixed-use development that would be both publicly and privately financed. Details such as location arenâ&#x20AC;&#x2122;t yet disclosed.

Dec. 19, 2012: Gov. Rick Snyder signs a bill that authorizes the Detroit Downtown Development Authority to redirect tax captures to pay off $250 million in tax-exempt municipal bonds issued by the DDA to finance arena construction. The remainder of the construction costs are privately financed. June 19, 2013: Detroitâ&#x20AC;&#x2122;s Downtown Development Authority approves a plan in which the DDA owns the arena while Olympia Development of Michigan operates the facility under a 35-year concession agreement with 12 five-year renewal options. Olympia keeps all revenue from the building, from which it will pay about $13 million annually on the arenaâ&#x20AC;&#x2122;s bond debt. March 25, 2014: The Michigan Strategic Fund approves up to $6 million for the demolition of Joe Louis Arena. The $6 million represents a quarter of the

estimated $24 million the state expects any commercial redevelopment of the riverfront site to be worth. The deal requires the Detroit Brownfield Redevelopment Authority to repay the $6 million from taxes it will collect from whatever is eventually built on the site. July 2014: The Ilitches unveil their plan for The District Detroit, a sprawling mixed-used project of apartments, restaurants, office buildings, parks and shops over 45 blocks in five planned neighborhoods. Itâ&#x20AC;&#x2122;s anchored by the 650,000-square-foot, $450 million hockey and events center, with $200 million in ancillary development. The expected investment is currently $2.1 billion for the entire project. The investment for the 12-acre arena site, which includes the bowl, parking garage and nearby buildings, has grown to $863 million. SEE PAGE L8

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A GOAL AND A REBOUND

LITTLE CAESARS ARENA COMMEMORATIVE SECTION

THE GAME HAS CHANGED

Development dollars have doubled since Comerica opened By Kirk Pinho kpinho@crain.com

hen Comerica Park opened in 2000, developers were cooking up about $4 billion in construction projects, including three new casinos and an overhaul of Campus Martius. ¶ It was a surge of construction in a downtown that hadn’t seen much in a long time. ¶ That surge pales in comparison to what’s in the works in greater downtown Detroit today. Crain’s estimates — very conservatively — that at least $8.25 billion in development projects in and around the downtown core have been completed since the new Little Caesars Arena was announced in the summer 2014 or are on their way to completion in the next several years. The calculation sheds new light on the sheer breadth of development interest in the city that just a few years ago was seeing its obituary written during a contentious municipal bankruptcy case. Nearly 100 projects were included in the current tabulation, ranging from Dan Gilbert’s eyebrow-raising high-rise plans for vacant sites down-

town to smaller projects peppering Midtown, Corktown, Eastern Market and the New Center area, to the Ilitch family’s sweeping 45- to 50-block planned mixed-use district surrounding Little Caesars Arena for the Detroit Red Wings and Detroit Pistons. The calculation includes figures from recent reports from the Southfield office of CBRE Inc., Midtown Detroit Inc. and Crain’s internal archives. Projects both large and small were included, and many of them have development costs which have not been revealed, so the figure could pretty easily top $10 billion. SEE PAGE L10

“None of this stuff would be happening were it not for the groundwork that first really started with Comerica Park,” said Eric Larson.

Timeline: Where they played, continued << Sept. 25, 2014: Groundbreaking for the arena. Oct. 27, 2015: The Ilitch family announces plans to donate money and land totaling $40 million for a 120,000-square-foot multistory building of classrooms, offices and other spaces for Wayne State University’s business school at the southwest corner of Woodward Avenue and Temple Street. The Mike Ilitch School of Business is expected to open in 2018.

$120 million over 20 years for the naming rights to the new arena. The deal includes the pizza chain’s logo on the roof and elsewhere around the building.

>> Nov. 22, 2016: Tom Gores announces that the Detroit Pistons will relocate to Little Caesars Arena for the 2017-18 season. After surviving a late legal challenge, the deal eventually gets its final necessary approval, from the NBA’s owners, on Aug. 3.

Nov. 19, 2015: Olympia Entertainment President Tom Wilson announces that all of the arena’s suites have been leased. Crain’s estimates the revenue from the suites, leased under 7 to 10 year deals, at more than $110 million. >> April 28, 2016: The Ilitch family announces that their primary company, the Little Caesars pizza chain, will spend

for the Red Wings from 1946 to 1971 as an ambidextrous right wing whose game was a blend of elegant finesse and ferocity, and is considered one of the greatest ice hockey players of all time. There is a bronze statue of Howe inside Joe Louis Arena.

Feb. 10, 2017: Mike Ilitch dies at age 87.

June 10, 2016: Gordie Howe, possibly the most iconic sports figure in Detroit history, dies at age 88 in Ohio. He played

Feb. 24, 2017: As part of the deal to move downtown, the Pistons announce they and Henry Ford Health System will build a privately financed team headquarters, training and rehab facility for $65 million in the New Center area. The team will get a $20 million

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brownfield tax credit for the project. It’s expected to open in 2018.

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May 24, 2017: Sports venue food service giant Delaware North Sportservice is awarded the food, beverage and retail sales contract for Little Caesars Arena.

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Sept. 12, 2017: Little Caesars Arena opens with the first of six concerts by Kid Rock. Kid Rock Oct. 5, 2017: Red Wings regular-season debut at Little Caesars Arena against the Minnesota Wild. Sources: Detroit Red Wings, Detroit Pistons, Crain’s research

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A GOAL AND A REBOUND

LITTLE CAESARS ARENA COMMEMORATIVE

OLYMPIA DEVELOPMENT

More than $8 billion in projects are planned ahead of the arena’s opening.

It does not include projects planned for areas outside of downtown, including a $4 million redevelopment in the Fitzgerald neighborhood and several new projects around Livernois and Six Mile Road, for example, since those are a bit too far from the new arena to be considered as offshoots of its construction. For all the excitement surrounding the opening of the Detroit Tigers’ new stadium at the turn of the century, developers are even more bullish about the future of the 7.2 square miles of greater downtown. And the money is increasingly getting in the ground. But it all started with Comerica, said Eric Larson, a real estate developer who owns Bloomfield Hills-based Larson Realty Group who is also president and CEO of the nonprofit Downtown Detroit Partnership. “None of this stuff would be happening were it not for the groundwork that first really started with Comerica Park and then obviously the subsequent investments that were made,” he said.

Beyond Ilitches, Gilbert In many ways, greater downtown’s development scene has been molded by two billionaires: Christopher Ilitch, president and CEO of Ilitch Holdings Inc. and son of the late Mike Ilitch, and Dan Gilbert, both operating in two distinct sections of town: the former generally north of Grand Circus Park, the latter generally south, although some diversions exist. The Ilitch family has been buying property in Detroit for more than two decades; Gilbert started in the downtown core in 2010. But in addition to amassing vast portfolios of skyscrap-

ers and vacant land, parking decks and rundown buildings, the two men have been spurring interest from other, smaller developers. The new arena is part of that, said George Jackson, founder of Detroit-based development and real estate advisory firm Ventra LLC and the former longtime head of the Detroit Economic Growth Corp. His company is also working on the District Detroit project, providing advisory services on multifamily projects. “It’s part of part of creating a sense of place, along with an identity and things like streetscapes and other amenities that create viable cities,” Jackson said. “That’s a very important part of the fab-

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“That anchor investment could not be more different than the arenas that came before them,” he said, referring to Comerica Park and Ford Field, the home of the Detroit Lions that was built in 2003. He also added that none of Detroit’s three casinos “used that anchor to their districts so smartly.”” “Right across the street from the arena will be residents, apartments, so from the very beginning of that as a district, it will already have residential addresses,” Cox said. Among the planned developments are the historic renovations of the United Artists Theatre building, the Hotel Eddystone, the Hotel Fort Wayne and the Alhambra Apartments, plus the construction of two new apartment buildings, One Eleven Henry and The Arena Lofts. The projects are expected to cost $160 million and bring 686 units to the market. Office developments are also planned, including a new headquar-

Chris Ilitch: Molding downtown development.

Maurice Cox: LCA revolutionizes arena approach.

ters for Little Caesars currently under construction. A handful of smaller projects have been ramping up around the district, as well.

No more doldrums? To be sure, development is a fickle business. Not all of the $8.25 billion-plus in projects will be completed. Financing falls through or demand dries up or plans change. That’s the nature of the business. In

COSTAR

The Alhambra Apartments.

2000, some of the development plans highlighted by Crain’s fell by the wayside, including some of the new office towers proposed for Campus Martius. Those included new office towers on the Monroe and Hudson’s blocks, which are now expected to become Gilbert developments costing nearly $1.6 billion, and the renovation of the David Whitney Building, which in 2000 was slated for a $37 million redevelopment as a hotel. The project was completed 15 years later for $94 million, by a different developer. Yet Jackson is hopeful about the development industry’s future in the greater downtown core. “I can’t see into the future for how long this goes,” he said. “But we will not ever see the doldrums that we saw in our past again. Whatever is developed will be from a much higher goal that has been set.”

Corporate -- General PG-content a 2014 Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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OLYMPIA DEVELOPMENT

The new Little Caesars World Headquarters is a $150 million development.

ric of the quality of life in the city, and it certainly has a major impact on visitors because most of them salivate on having their sports teams in one area.”

A mix of uses Maurice Cox, the city’s planning director, says Little Caesars Arena revolutionizes how sports arenas in the city will be done in the future because it’s not an isolated development, but instead one with multitudes of other development types surrounding it.

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A GOAL AND A REBOUND

LITTLE CAESARS ARENA COMMEMORATIVE SECTION

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$1B SPENT ON ARENA, DISTRICT DETROIT

90 percent of direct spending lands with Michigan companies By Chad Livengood clivengood@crain.com

Spending on Little Caesars Arena and the surrounding 50-block District Detroit is expected to have topped $1 billion when Kid Rock performs the opening concert Tuesday inside the new home of the Detroit Red Wings and Detroit Pistons. The Ilitch family’s Olympia Development of Michigan had paid out $926 million through July 31 in construction costs for Little Caesars Arena and its pizza chain’s new world headquarters within The District Detroit, according to a consultant’s report. “We can make a safe assumption now that we’re crossing a billion — and then some — by the time Kid

Rock takes stage,” said Mark Rosentraub, director of the Center for Sport & Policy at the University of Michigan. Rosentraub’s center has a contract with Olympia Development to receive the company’s monthly accounts paid ledger over the past three years and track spending on the arena project and District Detroit and its economic impact. About $90 million of the $926 million spent — or 9.7 percent — went to businesses with ZIP codes outside of Michigan, Rosentraub said. Total spending in The District Detroit is expected to top $1.2 billion after the completion of the new $150 million Little Caesars Pizza head-

quarters next to the Fox Theatre and construction of six residential projects that will add 686 units at a cost of $160 million, Rosentraub said. “Clearly it’s on track right now to meet that expectation,” Rosentraub said. “And it’s going to go over.” The long-term economic impact of the $863 million arena, parking garges and adjacent commercial buildings flanking the arena along Woodward Avenue and Henry Street remains a hot topic of debate among sports economists. The biggest skepticism of the project being a catalyst for long-term economic growth centers on the fact that it received $324 million in public financing, including $294.5 million

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Pistons’ return to the city will just redirect entertainment spending in Auburn Hills to Detroit. “More than likely the vast bulk of expenditures are entertainment dollars that are spent at the new arena than elsewhere,” said Zimbalist, an author of several sports finance books. “To the extent that that’s the case, you’re not promoting development — you’re just shifting around funds.” Because of the shift to Detroit, there likely won’t be a post-construction boost to overall economic activity in Southeast Michigan, said Allen Sanderson, a sports economist at the University of Chicago. “All you’re really doing is redistributing spending in a metro area,” Sanderson said. “If my wife and I spend $200 in an arena, that’s $200 we’re not spending in an entertainment venue or a mall.”

But Olympia’s paid economic consultant argues that his colleagues in the sports economics business ignore the context of filling a long-vacant hole in downtown Detroit between burgeoning Midtown development and billionaire businessman Dan Gilbert’s purchase and renovations of dozens of downtown properties. “Downtown Detroit will now be

Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

LARRY PEPLIN

Olympia Development had paid out $926 million through July 31 for the arena and Little Caesar’s new world HQ.

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in taxpayer-supported bonds issued by the Detroit Downtown Development Authority. “I don’t think it’s likely that another business would get one-third of their building cost paid for by the city,” said David Berri, a sports economics professor at Southern Utah University. The bonds are being paid for by growth in property taxes on downtown properties such as DTE Energy Co., General Motors Corp. and Quicken Loans Inc. “You’re far better off building bet-

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Mark Rosentraub: Inside look at District books.

the region’s center of entertainment,” said Rosentraub, a sports management and urban planning professor at U-M. “From Wayne State down to everything Dan Gilbert has done, downtown and Midtown Detroit has been rebuilt. Now, how do we leverage that?” One key to building out the entertainment and commercial-focused 50-block District Detroit around the arena will be creating an atmosphere that gets sports fans and concertgoers to say in Midtown and downtown to eat, drink and shop, Sanderson said. “In theory, if done well, it can if not revitalize at least goose up the area and becomes a net benefit,” Sanderson said. “But it’s tricky and it’s not a slam dunk. It may work and it may not.”

Investments made at the arena are for cutting-edge technology including the world’s largest scoreboard of its type.

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Andrew Zimbalist: Shift in spending.

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ter roads and schools — things that are linked to good economic activity — than building giant, empty buildings,” Berri said of sports arenas in general. “It doesn’t create the economic growth they talk about.” But unlike Ford Field, where the Lions play 10 preseason and regular season games a year and the main arena goes largely unused for most of the year, Little Caesars Arena will have at least 41 Red Wings games and 41 Pistons games between October and April each year. The new arena’s usage could extend well into late spring if either team can make a deep run in their respective league’s playoffs. Olympia Entertainment has started to fill the arena’s schedule with a steady stream of concerts, starting with Kid Rock’s six shows over eight days in mid-September. The Red Wings’ preseason home opener is Sept. 23 against the Boston Bruins. The Pistons begin playing at Little Caesars Arena on Oct. 4, with a preseason opener against the Charlotte Hornets. The Pistons’ owner, Palace Sports & Entertainment, will effectively shift its concert business to Little Caesars Arena after Bob Seger & The Silver Bullet Band play a 17th and final concert on Sept. 23 at the 29-year-old Palace of Auburn Hills. Andrew Zimbalist, a professor of economics at Smith College in Northampton, Mass., said the Detroit

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A GOAL AND A REBOUND

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After the final notes ring out during the Sept. 23 Bob Seger & The Silver Bullet Band concert at the Palace of Auburn Hills, the former home of the Detroit Pistons will become the second in the region to close this year as casualties of the new Little Caesars Arena downtown. The other, the Detroit Red Wings’ Joe Louis Arena, shuttered earlier this year when the last buzzer sounded above home ice. Now the two sites are primed for new life. But what that life will be is less than certain. Nothing has been determined about how the next act for The Palace will proceed, said Kevin Grigg, a

spokesman for Palace Sports & Entertainment, which owns the 100-acre-plus site along I-75 in a commercial corridor known for its tech and automotive base. Yet there is a blueprint for redeveloping the Joe Louis Arena site stretching back to Detroit’s bankruptcy, when holdout creditor Financial Guaranty Insurance Corp. received development rights to the 9-acre property along the Detroit River. Under a settlement agreement approved by Detroit’s bankruptcy court judge, FGIC is to replace the soon-tobe-demolished arena with a hotel with at least 300 rooms and standing no more than 30 stories; and a mix of office, retail, recreation and residential space.

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declaring it a development parcel makes no sense,” Cox said. “It is probably the worst entanglement of highway, walkway, parking ramp, that I have seen in any part of the city. It can be overcome, but it is going to take a significant effort on the part of all the adjacent property owners.” Mark Wallace, president and CEO of the Detroit Riverfront Conservancy, said he didn’t want to weigh in on development plans for the site but that his organization has been providing institutional knowledge on usage patterns on that stretch of the river. “I’m interested in seeing plans as they get developed.”

No Palace decision yet The Auburn Hills City Council this summer rezoned the Palace property for technology and research purposes, although Palace Sports & Entertainment has not made a decision on whether to demolish the arena. Real estate experts generally view

“I’m interested in seeing plans as they get developed.” Mark Wallace, president and CEO of the Detroit Riverfront Conservancy

the site of the 22,000-seat Palace, which was built for $70 million between 198788, as prime for redevelopment for R&D and office space east of I-75. It can accommodate hundreds of thousands of square feet of new space. “Auburn Hills is a sought-after address for many high-tech companies,” Mayor Kevin McDaniel said in a statement last month after PS&E announced that the Palace would close. “We have been very proactive, knowing that Auburn Hills is in high demand for companies involved in research and development.” Ryan Dembs, president and CEO of Farmington Hills-based real estate

development company Dembs Development Inc., which has completed several projects in Auburn Hills, said that if The Palace is demolished, the site could feasibly be filled with new buildings in five years. “It lends itself to some bigger, headquarters-type facilities, perhaps some distribution,” Dembs said. The practice facility and executive offices are expected to remain in use for at least the next year or so while the Pistons build a new facility near TechTown along with Henry Ford Health System. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

CRAIN’S DETROIT BUSINESS

The location of Joe Louis Arena could make it tricky to redevelop, as required when the site went to a Detroit creditor.

But that’s easier said than done — for many of the same reasons that prompted complaints about Joe Louis Arena over the years.

Infrastructure nightmare Maurice Cox, the city’s planning director, called the web of infrastructure — freeways, skywalks and access ramps — surrounding the Joe Louis Arena a daunting facet to navigate. “It has an absolutely wicked entanglement of infrastructure that makes the development site challenging to access,” he said. “Whether a hotel could ever survive on what is effectively the service side of a convention center is a question that will be answered first and foremost by an understanding of what degree of access you can give the site.” That’s part of what his team and others have been studying in recent months, although no decision has been made. Any modification to the plans stipulated in FGIC’s settlement with the city would have to be approved by the bankruptcy court. It is expected to be demolished this year under terms of the settlement agreement, but a specific date has not been set. In the last several months, the planning department, along with key neighboring property owners — representatives of Detroit-based The Platform LLC, Wayne County Community College District, Cobo Center, the Detroit Riverfront Conservancy and the Detroit Economic Growth Corp. — have had discussions on how best to “open up” the west riverfront by improving access, considering the infrastructure nightmare around the Joe, Cox said. “Just taking down the arena and

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What stadiums cost Construction financing for stadiums in Detroit has been public and private money — or both — since the Detroit Tigers built Navin Field (which later became Briggs Stadium and then Tiger Stadium) in 1912 for $300,000. The team sold the stadium to the city for $1 in 1978. Detroit paid $400,000 to raze it in 2009. In 1926, Detroit businessmen privately financed the $2.2 million cost of Detroit Olympia, the original home of

the Red Wings until they moved into Joe Louis Arena in 1979. Olympia was razed in 1986. Below is a look at the financing and other facts about metro Detroit’s sports venues. These are the best numbers available, based on published data and documents from public agencies and limited information from the teams — Bill Shea

Little Caesars Arena

Comerica Park

Ford Field

Joe Louis Arena

Cost: $863 million Team: Detroit Red Wings, Detroit Pistons Seats: 20,000 Opens: September 2017 Owner: Detroit Downtown Development Authority Naming rights: The Little Caesars pizza chain, founded by Red Wings owners Mike and Marian Ilitch in 1959, is paying $120 million over 20 years. How it was funded: $250 million in tax-exempt municipal bonds issued by the DDA, followed by $34.5 million in additional bonds to accommodate changes for the Detroit Pistons moving into the building. The remaining nearly $580 million is privately financed in bonds and lending by Olympia Development of Michigan. How it will operate: Revenue: Olympia keeps all. Maintenance: Reserve fund funded by the state bonds. Lease: 35 years; 12 five-year options. Rent: $11.5 million concession fee paid to DDA, for bond retirement.

Cost: $326 million Team: Detroit Tigers Seats: 41,299 Opened: 2000 Owner: Detroit-Wayne County Stadium Authority Naming rights: Dallas-based Comerica Bank is paying the team $2.2 million a year until 2028 as part of a 30-year, $66 million deal inked in 1998. How it was funded: J Stadium authority bonds, paid off by rental car and hotel room taxes: $86 million J Downtown Development Authority: $40 million J Michigan Strategic Fund: $55 million J Ilitch family financing: $145 million How it operates: Revenue: Tigers keep all Maintenance: Funded by annual deposits of $300,000 from the Tigers and $250,000 from the DDA Lease: 35 years. Six 10-year options. Rent: The Tigers pay $1 a year for the 35-year lease, then $1 million annually for each of the six 10-year lease extension options exercised.

Cost: $500 million Team: Detroit Lions Seats: 64,500 Opened: 2002 Owner: Detroit-Wayne County Stadium Authority Naming rights: Ford Motor Co. paid the team $50 million in three lump sums in 2002 for 25-year rights. The automaker agreed in 2005 to pay another $6.6 million through 2015 to add its name to the stadium roof and elsewhere on the exterior. How it was funded: J DDA: $70 million J City: $15 million J Stadium authority: $20 million J Wayne County: $20 million J Corporate contributions: $50 million J Lions: $325 million How it operates: Revenue: Lions keep all Maintenance: Funded by a $300,000 annual contribution by the Lions Lease: 35 years. Six 10-year options Rent: $250,000 split between the DDA and Wayne County

Cost: $57 million Team: Detroit Red Wings Seats: 20,066 Opened: 1979 Owner: Detroit Building Authority/ Municipal Parking Department Naming rights: None How it was built: Municipal bonds paid off mostly with federal funds How it operated: J Red Wings kept all under lease approved in March 2014. Under previous lease, city collected taxes on tickets, concessions and suites sales that generated $2 million and $3 million annually. Maintenance: Red Wings paid Lease: Retroactive to 2010 through 2015 Rent: Old lease required $25,000 monthly and $252,000 annual use tax. Last deal was $1 million annually from 2010 through 2015, minus credit for property taxes. Five one-year options. Fate: The Michigan Strategic Fund in 2014 approved up to $6 million for its demolition. The $6 million represents a quarter of the estimated $24 million the state expects any commercial redevelop-

LOOK UP! WATCH OUT!

ment of the riverfront site to be worth. The deal requires the Detroit Brownfield Redevelopment Authority to repay the $6 million from taxes it will collect from whatever is eventually built on the site.

Palace of Auburn Hills Cost: $90 million Team: Detroit Pistons Seats: 22,076 Opened: 1988 Owner: Pistons owner Tom Gores Naming rights: None How it was built: Original owner William Davidson and partners privately financed the entire project. How it operates: Revenue: Pistons and Palace Sports & Entertainment keep all Maintenance: Handled internally Lease: None Rent: None. Fate: Events are still scheduled for the facility but will not compete with the new arena. It may be razed for commercial development of the site. Sources: DDA, Detroit-Wayne County Development Authority, Olympia, Crain’s research

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OF OLYMPIA, JOE LOUIS ARENA AND A NEAR-MISS WITH HISTORY

AP PHOTO/HILLERY

Some 15,609 fans packed Detroit’s Olympia Stadium Dec. 17, 1979 for the Red Wings-Quebec Nordiques NHL hockey game. The game ended in a 4-4 tie and marked the last NHL game in the 52-year-old building nicknamed the old Barn.

got off on the wrong foot with Joe Louis Arena. ¶ When construction got behind schedule in the summer of 1979 and its opening was delayed, it cost me a place in history that would have been entirely meaningless in the scheme of things and entirely magical to me. ¶ Olympia Stadium, the grand old building Joe Louis replaced, opened on Oct. 15, 1927. With a seating capacity TOM HENDERSON thenderson@crain.com of 11,563, it was reportedly the third-largest indoor areThe team made the playoffs that na in the world, behind only Madison Square Garden in year, beat Atlanta in the first round New York and another Olympia, in London. and gave heavily favored Montreal a

The first event was the International Stampede and Rodeo, and on Nov. 22, the first NHL game was played, between the hometown Cougars, transplanted from Vancouver, and the Ottawa Senators, who won 2-1. In 1930, the team was renamed the Falcons, and in 1932 renamed again to the Red Wings. I was raised by my grandparents in a neighborhood of Scottish immigrants near Grand River and Joy Road, within sight of Olympia, and my grandfather, who replaced his love of soccer with his love of hockey after he migrated to the U.S. in 1920, and I used to avidly watch the third period of home games, which was all

that was televised in the early and mid-1950s. I couldn’t follow the puck on our small fuzzy black-and-white TV, but Papa could, and I yelled and cheered when he did. In 1975, I inherited the Red Wings beat at the Free Press. The team was horrible. In 1977, Ted Lindsay, a Hall of Famer and legendary member of the Wings’ Production Line with Sid Abel and Gordie Howe, was named general manager. His mantra was “aggressive hockey is back in town,” and for a brief period, it was, ending an era of incompetence that saw the Red Wings drawing as few as 3,000 a game and missing the playoffs every year.

tussle before losing in the next round. One night in Montreal, I went into a bar after the team’s curfew and half of the players were there drinking. Jimmy Rutherford, one of the team’s goalies, came over to ask if I was going to write about them being out. I was committing enough of my own sins on a regular basis to write about theirs, and to prove it, I bought two rounds. (And forgot to get a receipt so I could expense it as relationship-building.) The next year, alas, the team reverted to form, went 23-41-16 and missed the playoffs in the last full season in Olympia, and my last season on the beat before I quit the pa-

per for a life of freelancing. My highlight covering the team had nothing to do with wins or losses, it had to do with a hockey game late every Monday afternoon at Olympia. About 30 of us showed up for a fiercely contested game matching the same teams each week. All of us were either employed by the Wings or connected to them. Al Sobotka, the world’s most famous Zamboni driver and twirler of octopi, played; so did Al Coates, a former minor leaguer who was then the team’s PR guy and would later become general manager of the Calgary Flames; as did Red Wings on the disabled list but looking for a good skate; minor leaguers from the area who happened to be in town for a couple of days; ex-Red Wings; and hockey buffs who had, say, the building’s Budweiser or Coke account. Jim Essian, then a catcher for the Chicago White Sox and later their manager, played each week, too, in violation of his contract barring such baseball-threatening activities. It was all-out skating and fierce slapshots but no checking. Except for Ted. It was his rink and, as he said, aggressive hockey was back in town. He played opposite me by choice. If I

had written something he objected to, there was going to be a price to pay. Slashes across the shins, a ride into the boards, a hip check here and there. I loved it. Growing up almost in the shadow of the building and having watched Ted on Papa’s grainy TV, there was no greater honor than going to work the next day with a bruised cheek or cut lip from Ted, who was always the best player on the ice. Ted used to let me skate with the Wings after the formal end of practice, too, when some of the players would keep at it another half-hour or so. Ted even gave me a black jersey to wear at practice on the road, where the Canadiens, say, wouldn’t permit media to skate. The black jerseys were worn by players who weren’t going to be in the lineup, and Ted was happy to pretend I was one of those. So was I. Inordinately. Anyway, Al Coates told us one Monday in spring that the next Monday would be our last skate. Would, in fact, be the last skate in the history of the building. They were taking down the boards the day after and melting the ice, and the plan was to be in Joe Louis come fall. SEE HENDERSON, PAGE L22

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LOVE WHAT YOU SEE IN THIS ISSUE? For a limited time only, order copies of these special features: • Full Dual Cover Keepsake Edition • Arena Anatomy Map Poster • Homecoming Cover Page Art • Little Caesars Arena Cover Page Art Place your order today by visiting crainsdetroit.com/dualcover or call 1-877-824-9374.

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A GOAL AND A REBOUND

LITTLE CAESARS ARENA COMMEMORATIVE SECTION

Arena Anatomy

Building a project as as Little Caesars Arena isn’tisn’t a one-person — or a thousand-person —— job. Contributions from companies hugehuge and and small went Buildingasascomplex complex a project Little Caesars Arena a one-man — even or even a thousand-man job. Contributions from companies small went into the fi nal product. Here, we chart only a small selection of the vendors and contractors whose handiwork is on display at the arena. into the final product. Here, we chart only a small selection of the vendors and contractors whose handiwork is on display at the arena. General contractor: Barton Malow-Hunt-White A joint venture of Barton Malow Co., Southfield; White Construction Co., Detroit; Hunt Construction Group, Indianapolis

Arena structural steel: Midwest Steel Inc., Detroit

Architect: Kansas City-based HOK Design consultant: Detroit-based civil engineering firm Giffels Webster Traffic engineer: Detroit office of Parsons Brinckerhoff

Sports lighting: MUSCO Sports Lighting LLC, Oskaloosa, Iowa

Landscape design: Detroit-based SmithGroup JJR Urban planning and design: White Plains, N.Y.-based Street-Works Workforce inclusion and business participation consultant: Heritage Development Services LLC, a unit of Detroit-based economic development consultant The Diggs Group Inc. Retail space leasing: CBRE Inc., Southfield Office and retail space advising: Plante Moran Cresa, Southfield

Ice rink system: Cimco Refrigeration Inc., Toronto

Multifamily development advising: Ventra LLC, Detroit Parking garage/walkway: ChristenDetroit Parking garage foundations and concrete: Rohrscheib & Sons Caissons, Inc., New Hudson; Ideal Contracting Inc., Detroit; Midwest Steel Inc., Detroit

Seating (telescopic): Stage Right Corp., Clare

Arena roof system: ChristenDetroit, Detroit

Landscaping and planting: RBV Contracting Inc., Detroit

WO O

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DA VE

Little Caesars Arena

Residential Retail

SP RO AT

ST .

Office

Proposed hotel site

Parking 111 West

CA SS AV E

Arena Lofts

NR Y HE

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Parking

Sources: Olympia Entertainment, The District Detroit Crain’s graphic by Bill Shea and Tim Summers

Detroit Red Wings configuration

RE and

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REPRINT INFORMATION: To purchase additional copies of this keepsake issue or to order the Arena Anatomy map and cover artwork, visit crainsdetroit.com/dualcover.

Arena bowl cladding system: Crown Corr Inc., Flat Rock

Structural roof system: Vector Foiltec LLC, Fairfield, N.J.

Arena tension grid: InterAmerica Stage Inc., Sanford, Fla. Arena metal walls: A.C. Dellovade, Canonsburg, Pa. Arena glazing interior and exterior: Madison Heights Glass Co., Madison Heights Arena exterior concrete: Tooles Contracting Group LLC, Detroit

Scoreboard and LED system: Daktronics Inc., Brookings, S.D.

Electrical equipment: Motor City Electric Co., Detroit Internet network: Comcast, Philadelphia Project-wide integrated controls (HVAC): Johnson Controls Inc., Warren Fire alarms and fire-related protection: SimplexGrinnell, Boca Raton, Fla.; Shambaugh & Sons LP, Fort Wayne, Ind.; William C. Reichenbach Co., Lansing

Seating (fixed): Irwin Seating Co., Grand Rapids

Foodservice equipment: H-Mak Inc., Pittsburgh

Arena flooring: Shock Bros. Floorcovering, Roseville

Elevators and escalators: Kone Inc., Lisle, Ill. Hydrotherapy pools and equipment: HydroWorx International Inc., Middletown, Pa. Arena tile and stone finishes: Artisan Tile Inc., Brighton

Basketball court: Dollar Bay-based Horner Flooring Co. Inc.

Arena handrails: Dixon Inc., Detroit

Arena painting and wall coverings: Eugenio Painting Inc., Grosse Pointe Woods

Hoops: Spalding, a division of Bowling Green, Ky.-based Russell Brands LLC.

Detroit Pistons configuration

Curtains, masking, blackouts: Chicago Flyhouse Inc., Chicago

Demolition: Dore & Associates Contracting Inc., Bay City

Earth retention systems: Hardman Construction Inc., Ludington

Arena Below-grade waterproofing: RAM Construction Services, Livonia

Mass excavation, site utilities and concrete: Blaze-Iafrate Joint Venture LLC, Detroit

Arena structural precast concrete: Midwest Steel Inc., Detroit

Arena foundations: Rohrscheib & Sons Caissons, Inc., New Hudson; Tooles Contracting Group LLC, Detroit

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A GOAL AND A REBOUND

LITTLE CAESARS ARENA COMMEMORATIVE SECTION

HENDERSON FROM PAGE L18

So after our game, the nonsentimental players headed for the dressing room. A bunch of us waited on the ice by the boards, some with cameras in hand, and at the count of three, we all jumped over the boards and off the ice at the same time. We would each of us be the last to ever skate at Olympia. Except, soon after, it became clear the early construction schedule was optimistic, a new opening date was announced, and the Wings started the 1979-80 season at the old building, playing their first game in Joe Louis on Dec. 27. I loved Olympia and especially its view of the game from the upper tier, which was spectacular, as if you were hovering over the ice, though I knew that even with a capacity that had been expanded over the years to 15,000, it was too small to support the growing payroll of a modern hockey team. Originally, the Wings planned to move to Pontiac, to a stadium to be called Olympia II that was going to be built next to the Silverdome. But Detroit Mayor Coleman Young made an offer the team couldn’t refuse. The city would build and own a new arena, charge the Wings much lower

rent than they had planned to pay in Pontiac, and turn over the running of Cobo Hall and a bunch of surface parking lots downtown to Bruce Norris, the Wings’ owner. I haven’t seen an accounting of how it was decided which plot of land Joe Louis would be built on. My guess is there’s a Coleman Young story, there, but bias for the old Olympia notwithstanding, you could not have chosen a worse place to build a sports arena. If they taught arena design at the College for Creative Studies, the course would include a primer on site selection. You would want access from 360 degrees, first and foremost, so folks could come and go with as little impediment as possible. The Joe was built on the Detroit River, immediately reducing access by half. It abutted Cobo, limiting another 90 degrees or so of access. And out front ran the last stretch of the Lodge Freeway before its exit ramp dumped traffic out in the middle of downtown. Which blocked another chunk of access. Joe Louis was, incredibly enough, almost impossible to get to by foot, as I discovered the first game I went to as a civilian early in 1980. I parked by the Anchor Bar, street parking then being free downtown at night, and headed toward the arena. To get there, you either went into

those ugly tubes that connected to the stadium or you hopped barriers and ran across the freeway. I chose the tubes once and never again. You went up a long spiral and then through a tube parallel to the ground, the whole way reeking the gagging reek of urine dried onto concrete from the homeless who slept there; after the game, you didn’t have the reek of urine to worry about, it was the clouds of smoke from hockey fans who lit up the moment they got out of the building. There was a claustrophobic jam of people as fans poured into the tube, then stood in place awhile, jammed shoulder to shoulder until everyone started slowly shuffling forward through a blue haze. From then on, it was running across the freeway. The first time I did that, I came to those impossibly steep steps at Joe Louis, covered in snow and at about the angle of Mayan Temples, with steps too narrow to accommodate my whole foot. How can these meet code? I wondered. Well, the architects at SHG had to do what they had to do, which was fit an arena into a footprint too small, and if that meant ridiculously steep and narrow steps, so be it. My first game at Joe Louis, Al Coates had got me a pass to the press box, which was another shock. Olympia’s had been far from grand, but it

was palatial compared to the new one, which wasn’t a press box, at all, but rather a long table at the top of the arena wedged in behind the last row of seats. During the action, fans would stand and block your view. Marvin Mews was a member of the Red Wings broadcast team, kind of an early coordinator of media outreach. He had grand plans for the new arena, and told me about meetings with Lincoln Cavalieri, who ran Olympia Stadium for 30 years and was a Red Wings vice president, where he recommended different places in the new stadium where TV cameras or photographers could be stationed. He was dismayed none of his suggestions ended up in the final plans, and Marvin told me Cavalieri’s disdain for media was the reason for that and the reason for the fourthrate press box. Norris’ long and dismal tenure as owner of the Wings ended when he sold the team to Mike Ilitch in 1982, and under Ilitch’s ownership, the Wings made fans ignore their mediocre surroundings. The Wings played in six Stanley Cup finals in the arena, winning four of them. In a recent series on the top 20 moments in Joe Louis history, a game I covered as a freelancer for the Free Press made the cut at No. 19, a game on Dec. 29, 1982, between Michigan

State and Michigan Tech at the 18th annual Great Lakes Invitational hockey tournament, where the box office was shut down 90 minutes before the game and 21,347 fans went nuts all game long, then an attendance record for a hockey game in North America. Said the Freep on March 28: “Tom Henderson wrote for Free Press: ‘The news of this night was the crowd — the largest ever to see a hockey game, barring something bigger behind the Iron Curtain; the largest crowd in the young history of Joe Louis; probably the loudest crowd around here since most of Michigan poured downtown to celebrate the Tigers’ World Series win in 1968.’” In 1983, the Wings drafted Steve Yzerman, who became the driving force behind those Stanley Cups. A couple of years later, I got hired to write the Red Wings yearbook, a gig that lasted several years and allowed me access to a young team about to become one of the best in Detroit history. Papa would have been proud. I’ve read stories and seen renderings of the Wings new arena. It looks fabulous. It’ll make fans forget Joe Louis, if not the hockey that was played there. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

ADVERTISING SECTION To place your listing or for more information, please call Lynn Calcaterra at (313) 446-6086 or email lcalcaterra@crain.com

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Page 2

September 11,L23 2017

MARKET PLACE

A GOAL AND A REBOUND

LITTLE CAESARS ARENA COMMEMORATIVE SECTION

CONSTRUCTION

INDUSTRIAL SERVICES

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AN INSIDE LOOK

POSITIONS AVAILABLE

Senior Engineer, Automotive Product Applications

LARRY A. PEPLIN FOR CRAIN’S

Public areas of the new arena feature enormous tributes to the history of two long-standing pro sports teams.

Areas for players, performers would be at home in upscale hotel By Bill Shea

chio have been relocated from Joe Louis to the new arena’s concourse. They’re among 1,000-plus objects, pieces or memorabilia, and other items of historic interest or nostalgia that are displayed at Little Caesars Arena. Both the Red Wings and Pistons, who only decided to relocate downtown last November, are equally represented. It has taken a specialized staff to create the displays. Marcel Parent was hired by Olympia two years ago as director of curation and content activation. He has two full-time assistants and shares a third with the rest of Olympia. With him, their job is handle what’s displayed in the arena and catalog what may be up to 10,000 more items still in storage. “The goal was to have a place that is dripping with history,” Parent said.

bshea@crain.com

Wandering inside new Little Caesars Arena, getting a look at the areas hidden to the public, it’s easy to think one is inside an upscale hotel. A hotel devoted to the history of two of the most iconic teams in the history of pro sports, that is. News media were given tours of the venue last week, led by executives and staff from Olympia Entertainment and Palace Sports & Entertainment, the former competitors that now share the $863 million project site that’s home to the Detroit Red Wings and Pistons. Backstage rooms are devoted to entertainer comfort before and after shows, resplendent in subdued woods and leathers. The arena has five such rooms of varying size, which are served by a full kitchen. They call it the “artist compound.” The hockey and basketball players will get elite comforts, too. Underneath the plaza adjacent to the arena is the Red Wings practice arena, and overlooking that is a sprawling 5,000-square-foot set of rooms for players' families. The area includes a playroom for children, with wooden toys and miniature lockers. The Red Wings player area — locker room, changing area, lounge, kitchen and therapy rooms — is 23,000 square feet. The kitchen would be the envy of many TV celebrity chefs. The player area is more than double what they had at Joe Louis Arena. Oh, and each of the wooden lockers has a vent to help dissipate the strong odors that are unique to hockey locker rooms. That’s next to the underground practice ice rink whose walls are lined with the Red Wings original championship banners. The area for the Pistons wasn’t part of Wednesday’s tour because it’s still under construction. These are the places the public won’t get a chance to see.

Control room goes higher tech

The original Olympia Stadium sign will grace a public area at the arena.

“I truly think this building is a work of art,” said Tom Wilson, president of Olympia Entertainment that runs the building. His resume now includes opening two arenas: Little Caesars this week, and in 1988 he led the $90 million Palace of Auburn Hills project for then-Pistons owner William Davidson.

Honoring history of 2 franchises Red Wings fans will notice the dramatic bronze sculptures of Gordie Howe, Ted Lindsay and Alex Delvec-

A crowded control room filled with monitors and a dizzying array of state-of-the-art equipment is where 25-30 staff members will control what fans see during the game on the massive LED video and ribbon boards, and on the arena’s 1,300 monitors. It’s a major advancement over the operation at Joe Louis Arena, which jammed equipment into spaces designed in 1979, the year ESPN launched. The Palace had more modern control facilities, but not on the scale of Little Caesars Arena. “We went from the Flintstones to the Jetsons here,” said Pete Skorich, who was hired in January as Olympia’s vice president of entertainment services to handle production at the arena. The control room can handle up to 69 cameras for an event. For a game, 16 will be typical. A secondary control room means the venue can produce two events at once. SEE INSIDE, PAGE L24

ArcelorMittal USA LLC has an opportunity for a Senior Engineer, Automotive Product Applications at its Southfield, MI location. This position is responsible for proposing and evaluating lightweight steel design concepts for future vehicles that support ArcelorMittal’s strategic objectives and steel product portfolio. May be assigned to projects on-site at our customers’ facilities in the Detroit metro area. This position requires a Master’s degree or equivalent in Engineering or a related field; or, in the alternate, a Bachelor’s degree or equivalent in Engineering or a related field and two (2) years of related experience. The position also requires demonstrated experience with each of the following: 1) using Computer Aided Engineering (CAE) tools for automotive design and analysis in an employment, academic, or internship setting and utilizing at least one of the following HyperWorks Suite, ANSA, and at least two of the following - LS-Dyna, Abaqus, Nastran, Optistruct; 2) working in an employment, academic, or internship setting on projects focused on designing lightweight automotive structural parts and assemblies; and 3) using knowledge of automotive materials including mechanical properties and applying such knowledge to the design of specific parts. Employer will accept experience gained concurrently. Will accept experience gained before, during or after Master’s program. Will accept experience gained through academic coursework. Apply online at: http://usa.arcelormittal.com/people-and-careers/job-opportunities/search-salaried-positions refer to position Senior Engineer, Automotive Product Applications. ArcelorMittal is an EEO Employer: race, age, color, religion, sex, sexual orientation, gender identity, national origin, disability, veteran status, and other legally protected characteristics.

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L24

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Kapnick Insurance Group has been named one of

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Plaza living, arena style Still under construction outside the arena are a few hundred apartments that will face the Chevrolet Plaza, a public space with a massive video board. The 600- to 800-square-foot apartments are attached to the two parking garages on the arena site. The ground floors of the two residential complexes will be retail space, including three to four restaurants, Wilson said. The plaza is expected to be used on game days as a gathering space with events for fans without tickets, and will be used for other events. Wilson said companies involved with the annual North American International Auto Show at Cobo Center have called to ask about using the space during the January event. One parking garage has an elevated walkway that connects to the arena. Wilson said the players will have their own parking in the garage and enter the building via a special separate underground tunnel.

Little Caesars goes in big Wilson is especially proud of the “Via” concourse that surrounds the arena. Two-thirds of it have a transparent roof to the sky, and it's four times larger than the narrow concourse at Joe Louis, Wilson said. “The days of walking elbow to elbow, shoulder to shoulder are over,” he said. Along the concourse are various restaurants, including the new Kid Rock eatery, and the 9,500-squarefoot retail store that sells Red Wings and Pistons merchandise. Also on the Via are two of four Little Caesars concessions locations. The pizza chain, founded in 1959 by Red Wings owners Mike and Marian Ilitch, in April 2016 signed a 20-year, $120 million naming rights deal for the arena. “We expect over time to get a return on that investment,” said Little Caesars President Dave Scrivano.

Docking bays on steroids Large concerts often require a day each to load in and out, sandwiched around the event itself. Little Caesars Arena officials hope they can reduce that time because it has a massive loading dock area. The Palace had three loading docks for trucks. Joe Louis had one. Little Caesars Arena has seven bays. The loading dock area is so large that a tractor trailer can turn around inside it, Wilson said.

Pistons tease While the Pistons locker room and player area wasn’t available to reporters because it remains under construction, the team did provide a fact sheet. The basics are that it’s 1,250 square feet with 12-foot high ceilings and 18 lockers — all USB capable. A 98-inch interactive media wall will be used for game film breakdown and preparation.

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Don’t tread on me Many NHL locker rooms have the home team’s logo on the floor, as part of the carpet design, and it’s considered bad luck and poor manners to walk on the logo. The Red Wings have eliminated that problem by putting the massive winged wheel logo on the ceiling.