Crain's Detroit Business, May 7, 2018 issue by Crain's Detroit Business

Michigan Israel accelerator hires CEO USPBL considering expansion. Page 3 MANUFACTURING

Ex-Metaldyne CEO makes big bet on U.S. stamping By Dustin Walsh dwalsh@crain.com

The North American car market peaked in 2016 and is expected to remain flat this year. But that didn’t stop former Metaldyne Performance Group Inc. CEO George Thanopoulos and his New York private equity partner KPS Capital Partners from acquiring New Boston-based metal stamper L&W Inc. last week. L&W operates 23 facilities with 3,200 employees — in the U.S. only — with plants in Michigan, Ohio, Tennessee and Texas. Thanopoulos calls the acquisition, whose value remains undisclosed, a win-win because no matter where the market goes, the Greek executive and his private equity partner plan to dominate the metal stamping sector through bolt-on and complementary acquisitions for its newly formed holding company Autokiniton Global Group LP. Autokiniton translates to automotive or automobile in Greek, depending on the context. “On one hand, if there’s a recession, it would impact L&W, but it would give us an upper hand in acquiring distressed companies,” Thanopoulos told Crain’s in a rare interview. “Our thinking was, ‘Let’s get involved and invested and if times are good for longer, that’s great, we’ll be methodical with our growth. But if there’s a mild or deep recession, we’ll be in the saddle to seize the moment.’” It’s a recipe Thanopoulos and KPS know well. The pair created a metal forging conglomerate HHI — Royal Oakbased Hephaestus Holdings Inc., named after the Greek god of fire, forges and metalworking — in 2005 ahead of the Great Recession from the bankrupt assets of Jernberg Forge, Iron Mountain Forge, Impact Forge, Omni Forge and Net Forge. In 2008, through its Kyklos Bearing International subsidiary, HHI acquired Delphi’s wheel bearings business. SEE THANOPOULOS, PAGE 38

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MAY 7 - 13, 2018 | crainsdetroit.com SPECIAL SECTION | PAGES 8-18

TWENTY IN THEIR

A year later, QLine delays still plague streetcar By Chad Livengood clivengood@crain.com

20S Meet young Detroiters who are making a difference by opening doors for themselves — and for their city PAGES 8-9

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Cody Bailey

Laura Grannemann

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Justin Hanna

John Rogers

Victoria Manix

Stella Safari

Meagan Ward

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Paul Gallagher Ezekiel Harris Michael and Matthew Romine Courtney Smith PAGES 12-13 Allison Drutchas Alyson Schramm Naeger

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Stanley Brooks jumped on the QLine last Monday after work downtown to visit the Fisher Building’s new City Bakery cafe at the end of the streetcar line in New Center. Halfway there, the train came to a halt. The driver announced there was an obstruction on the tracks — a common obstacle for Detroit’s first streetcar in six decades. Twenty minutes went by, Brooks

Need to know  Between July and the last week of April, there were 267 interruptions of QLine service  The QLine’s permanent track in Midtown has left it susceptible to being blocked by cars  Service also has been hampered at times by technological hiccups

said. The air conditioning wasn’t keeping up as the sun beamed down on the first day this year above 70 degrees. Finally, the streetcar started rolling along again. For half a block. Brooks hopped off, too frustrated to wait to find out the cause. He walked to the nearest bus stop and boarded the Route 53 bus north. “There’s always a delay,” said Brooks, 53, of Harper Woods. “It’d be a good system if it would move smoothly without interruption." Brooks’ customer experience is a common refrain among paying passengers after one year of the fledgling streetcar ferrying riders up and down Woodward. Between July and the last week of April, there were 267 interruptions of service — almost one per day — longer than five minutes. Half of those delays were due to a vehicle blocking the rail lane, according to QLine data. The QLine’s permanent track in the right lanes of Woodward Avenue in Midtown has left it susceptible to being blocked by cars illegally parked in the roadway, piles of snow and even the rear end of Detroit Department of Transportation buses crossing the white line and blocking the train’s tracks. SEE QLINE, PAGE 38

INSIDE | CRAIN CONTENT STUDIO

Notable women in finance << This special section profiles women who work in finance roles in Michigan companies. Pages S1-S15

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

MICHIGAN BRIEFS

INSIDE

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

Selection of organization for mental health test programs delayed The Michigan Department of Health and Human Services has pushed back a plan to seek a single statewide organization to manage mental health care for about 61,000 unenrolled Medicaid patients in pilot programs to test coordination of physical and mental health care. Crain's reported Monday that MDHHS had decided to issue an RFP in May for a single statewide prepaid inpatient health plan to manage the Medicaid recipients who are unenrolled in a health plan but receive Medicaid mental health benefits in the markets that will be part of the pilot programs. The PIHP would then contract with the pilot programs for care delivery. But opposition from mental health advocates and organizations to the state plan apparently took hold and the department decided to announce Monday it had indefinitely delayed the PIHP RFP. Phil Kurdunowicz, a MDHHS legislative analyst who is coordinating implementation of the behavioral health-physical health Section 298 pilots, confirmed Monday afternoon that the state’s plan had changed. The

department posted a Section 298 pilot update Monday that announced the change. “We are reviewing the comments” from mental health stakeholders “and there is no set date for a new RFP,” said Kurdunowicz, adding: “The reason we hit the pause button is we are working through various policy and regulatory issues to contract with a single PIHP.” Kurdunowicz acknowledged the department had received many concerns from the behavioral health industry in Michigan. “We have not decided to not go with the PIHP. We are where the community is at now,” he said. Many behavioral health experts worry that placing people with Medicaid benefits in a single statewide entity, regardless of whether it is a public entity, could be a first step in giving the management role to a single private managed care firm — the socalled privatization of publicly funded behavioral health services — one of the original goals of Gov. Rick Snyder’s controversial budget language, known as Section 298, proposed in early 2016. Under Snyder’s plan, which has evolved from that proposal, Michigan has begun a process intended to improve care coordination between its $9 billion Medicaid physical health system managed by health plans and its nearly $3 billion Medicaid behavioral health system managed by 10

An aerial shot of the MITRP facility in Ottawa Lake.

regional, quasi-public mental health authorities known as prepaid inpatient health plans.

TRI to open autonomous testing facility in state

The Toyota Research Institute plans to open a closed-course testing facility for autonomous vehicles at the Michigan Technical Resource Park in Ottawa Lake, Automotive News, another publication of Crain Communications Inc., reported. The 60-acre site, to open in October, will be used to reproduce scenarios that are too risky to execute on public roads, TRI said in a statement, and will involve “congested urban environments, slick surfaces and a fourlane divided highway with high-speed entrance and exit ramps.” Ottawa Lake is near the Michigan-Ohio border, 35 miles south of the Toyota Technical Center operations outside Ann Arbor. A TRI spokesman declined to comment on the details of the agreement

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with the resource park, including the cost of the arrangement and the length of the lease. TRI plans to lease the track, and the land in the inner ring, from the Michigan Technical Resource Park, or MITRP. The 50-yearold track had been used for decades by auto supplier Dana Corp., which is based several miles away near Toledo. FCA US currently uses the site for vehicle storage, with thousands of mostly Ram trucks and Jeep SUVs parked along the track. “By constructing a course for ourselves, we can design it around our unique testing needs and rapidly ad-

J A story on Page 20 of the April 30 edition contained incorrect attendance figures and ranking for the Detroit Tigers’ 2017 season. The Tigers averaged 28,662 fans per game, which ranked 16th in Major League Baseball and was 1,361 off the

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vance capabilities, especially with Toyota Guardian automated vehicle mode,” Ryan Eustice, TRI senior vice president of automated driving, said in a statement. “This new site will give us the flexibility to customize driving scenarios that will push the limits of our technology and move us closer to conceiving a human-driven vehicle that is incapable of causing a crash.” The facility will be designed inside the park’s 1.75-mile oval test track, and TRI also will have access to other on-site facilities and services. MITRP will maintain responsibility for the oval itself and everything else outside of the oval infield, Toyota said.

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leaguewide average. An article in the April 30 edition of Crain’s Detroit Business under the headline “Ford begins forging a Corktown campus” should have stated that architecture firm Gensler’s office is in Detroit. J

Media Sponsor Crain’s Detroit Business Bronze Level Sponsors Pamela Applebaum/Arbor Investments Group Penny and Harold Blumenstein Bodman PLC Robyn and Bob Canvasser Chemical Bank Jaﬀe Counsel PLC Olympia Entertainment/ Detroit Red Wings Stephanie and Jared Rosenbaum Bea and Paul Schwarzbaum Elissa and Jeﬀ Tischler Tri-County Beverage Co. Walbridge Wayne Industries Copper Level Sponsors BELFOR USA and TPG Berger Realty Group Inc. Bleznak Real Estate Investment Group Broder & Sachse Real Estate Butzel Long Detroit Jewish News Dickinson Wright PLLC Feldman Automotive Beth Gotthelf and Steven Miesowicz Honigman Miller Schwartz and Cohn LLP Gilda and John Jacobs Leah and Daniel Rosenbaum Cheryl and Steve Schanes Wolverine Packing Co.

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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 // M A Y 7 , 2 0 1 8

SPORTS BUSINESS

USPBL aims to add more cities

Taxpayer-funded expansion on the horizon By Bill Shea bshea@crain.com

Andy Appleby has his proof of concept. Now he wants to export his baseball ideas elsewhere — if someone else will pay for it. The Rochester sports entrepreneur launched the United Shore Professional Baseball League in 2016 — its third season begins Friday at Jimmy John’s Field in Utica — and he said he expects to have a expansion deal with another city in place within three to six months. Andy Appleby: He said his Launched USPBL four-team in 2016. league of young developmental players has been popular and profitable, justifying to him the template of providing an inexpensive, family-friendly atmosphere during the nicest weather of the year in a clean stadium predicated on Disney-level customer service. He and a group of investors paid $16 million to build Jimmy John’s Field and to launch the baseball operations, much of which

Need to know

 Developmental baseball league’s third season begins May 11  Owner says 40 cities interested in USPBL expansion  Deal for new stadium could be announced in 3-6 months

has been offset by an estimated $4 million-plus in annual corporate sponsorship revenue. Where the next stadium and team could play is known only to Appleby. “Forty communities expressed interest,” Appleby said. “We still haven’t found the right situation yet. You have to have the right location that has a lot of people and businesses. It would be hard to make this work in a place anything other than that.” He declined to say what specific cities have expressed interest or are in talks for a stadium, citing confidentiality agreements, but did say that they’re in the Midwest, along with Colorado and Virginia. Appleby said his template for success — what he termed the “sophistication of our brand of baseball, customer service, and marketing” — can work in any market that meets his criteria.

The United Shore Professional Baseball League begins its third season Friday at Jimmy John’s Field in Utica.

SEE USPBL, PAGE 36

CRAIN’S DETROIT BUSINESS

ANALYSIS

For WSU and DMC, who (or what) is to blame?

What issue, person or persons deepsixed the adult services contract between Detroit Medical Center and Wayne State University’s academic medical group? And what is the plan for DMC to serve its patients going forward? And how will WSU afford to pay its faculty doctors without an estimated $14 million a year in payments from DMC? Those are three of the most perplexing questions left mostly unanswered now that DMC and its owner Tenet Healthcare Corp., the 69-hospital Dallas-based investor-owned chain, made the decision last week to halt contract

JAY GREENE

jgreene@crain.com

negotiations and inform WSU that it would work to end a 100-year-old relationship with the medical school and university.

Sources at DMC and WSU tell very different stories about why and how the talks ended. But almost everybody — doctors at Wayne State University Physician Group, DMC employees and the larger Southeast Michigan community — seems to be unhappy about it. The blame and anger appears to be directed at both sides in equal doses. There were some specific disagreements on provisions in the contract, but none appeared to have a lot to do with money. For example, Wayne State said they had agreed to the majority of payments to its physicians based on DMC’s fair market value analysis. There might

have been one or two programs with small dollar differences, but mostly those issues were settled, sources close to the negotiations agree. The final straw appears to have been Tenet DMC’s anger over Wayne State’s confidential talks with Henry Ford Health System. Crain's has reported there have been talks. But maybe Tenet knows some inside information about what the plan is or will be between Henry Ford and Wayne State? Did this information lead Tenet officials to believe they were being played by Wayne State? SEE DMC, PAGE 37

MUST READS OF THE WEEK Urban tech Wayne State, TechTown, NextEnergy team up to form an urban technology innovation consortium. Page 4

Pitching for capital Early-stage companies to pitch at Michigan Growth Capital Symposium. Page 4

VENTURE CAPITAL

NanoBio raises funding round, changes name By Tom Henderson thenderson@crain.com

Ann Arbor-based NanoBio Corp., considered by many as perhaps the most successful fundraiser in the history of state tech startups, has raised another funding round as it makes a pivot in search of a profitable market for its molecular technology. The pivot is drastic enough that it includes renaming itself as a new corporate entity, BlueWillow Biologics Inc. The company, which was founded in 2000 by James Baker, a physician and researcher at the University of Michigan who was then director of the school’s Center for Biologic Nanotechnology, has closed on a funding round of $10 million to focus its technology on administering a wide variety of vac-

Need to know

NanoBio Corp. raises another funding round 

 Makes pivot in search of a profitable market for its molecular technology  Renaming itself as a new corporate entity, BlueWillow Biologics Inc.

cines through administration by nasal spray instead of through shots. NanoBio, which previously had raised more than $150 million in funding, nearly half of that in equity funding from angel investors, venture capitalists and private-equity firms and the rest through large grants from federal and nonprofit institutions, had tried to commercialize antimicrobial ointments for the topical treatment of such

things as coldsores and fungal infections. Leading this investment round was Ann Arbor-based North Coast Technology Investors LP, and it was joined by Dave Peralta: Hoping to improve At l a n t a - b a s e d Line Moon Venvaccines for viral tures LLC and the diseases. University of Michigan MINTS (Michigan Invests in New Technology Startups) fund. The company said the new name is a reference to its long UM ties and to the medicinal power and deep roots of the willow tree.

BlueWillow will continue to develop skin and wound treatments through partnerships and external collaborations under the NanoBio trademark. The intranasal vaccine platform is built upon the company’s patented technology, branded as NanoVax, that uses an oil-in-water emulsion. According to company CEO David Peralta, most infectious pathogens enter the body through mucosal surfaces, but most vaccines are injected, which leads to less immune response. Based on company studies, Peralta said BlueWillow hopes to improve on existing vaccines for respiratory syncytial virus (RSV), pertussis, influenza, anthrax, herpes simplex virus 1 and 2 and chlamydia. SEE NANOBIO, PAGE 35

Chad Livengood: What should go downtown? Detroit Zoo CEO Ron Kagan last week proposed an aquarium for the Detroit Riverfront, but what should go in that space? Page 6

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WSU, TechTown, NextEnergy team up on urban tech By Dustin Walsh dwalsh@crain.com

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Wayne State University invested $6.6 million last month to acquire the NextEnergy Building in Detroit and will use the building in part to create an urban technology innovation consortium. The university, along with its startup incubator TechTown and NextEnergy, will form Detroit Urban Solutions, with the intent of studying and solving urban issues through the use of mobility, energy, digital health and civic technologies, said Ned Staebler, vice president of economic development for Wayne State and president and CEO of TechTown. Staebler said the consortium is designed to act like an air-traffic controller for research and work in these fields done by its members, creating a more unified approach. “We’re taking these existing assets, whether it’s Wayne State or NextEnergy or TechTown or Techstars and more efficiently use them to create solutions,” Staebler said. “Prior, things were disjointed. We’re stronger together.” The consortium will be housed in the 45,000-square-foot building, which has been renamed the Wayne State Industry Innovation Center. Be-

Need to know

 Wayne State bought NextEnergy Building in Midtown for $6.6M  Building will become Wayne State Industry Innovation Center  Center will house a new urban solutions consortium

sides the consortium, it will also house engineering programs specific to cybersecurity, connected and autonomous vehicles and smart city technologies. The center’s primary use will be to partner with industry to collaborate on these issues, Staebler said. The center includes 18,000 square feet of lab spaces, a pavilion for research on “smart charging” for electrical vehicles, electric vehicle infrastructure, biofuels and hydrogen fuel cell demonstration facilities and an Internet of Things smart house. Additional partners in the consortium are the city of Detroit, Design Core Detroit, Detroit Economic Growth Corp., Farmington Hillsbased IT and engineering consulting firm Kyyba Inc., Lear Corp., Michigan Economic Development Corp. and the New Economy Initiative. The city of Detroit views the consortium and the university’s innovation center as a more concrete selling

Ned Staebler: Using assets more efficiently,

Jed Howbert: A lever in development portfolio.

point for economic development. “Whether it’s the next Lear Innovation Center or a startup, I can now show a prospective client a physical asset and cluster that’ll serve as an important lever in our economic development portfolio,” said Jed Howbert, executive director of jobs and economy for Mayor Mike Duggan. The university plans to launch events and programs at the Industry Innovation Center in the fall. The consortium hopes to be funded through a source of private and philanthropic sources, but a budget has not yet been established, Staebler said. The group plans to hire a director to lead the consortium by the fall. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

Early-stage companies to pitch at Michigan Growth Capital Symposium by Tom Henderson thenderson@crain.com

More than 400 investors, researchers, service providers and entrepreneurs are expected at the 37th annual Michigan Growth Capital Symposium on May 15-16 at the Marriott Resort in Ypsilanti. The highlight will be pitches for capital over the two days from 32 companies, most of them early-stage tech companies from around the Midwest with others from California, Colorado and Kansas. Included among the presenters are:  OXX Inc. of Grand Rapids, which designs and makes rugged appliances, including coffee makers, for use in challenging environments on the job site or on weekend adventures and vacations.  Trillium Secure Inc. of Sunnyvale, Calif., an Internet of Things cybersecurity firm aimed at protecting automotive systems and networks from cyberattack.  Collabtic of Detroit, a Detroit-based creator of a collaboration platform and app for the printing and imaging industry.  Novadiol Inc. of Kansas City, Kan., a pharmaceutical company developing patent-protected drugs aimed at conditions associated with chronic kidney disease.  NoMo Diagnostics of Chicago, a real-time concussion diagnostic for athletes and military, powered by a miniaturized EEG and biosensors that monitor brainwaves.  SpinTech Inc. of Detroit, which designs MRI processing software for better identifying and reacting to unseen biomarkers for the diagnosis

MICHIGAN GROWTH CAPITAL SYMPOSIUM

The agenda includes a keynote address by event founder David Brophy of the Center for Venture Capital & Private Equity at the University of Michigan’s Ross School of Business.

Need to know

More than 400 investors, researchers and others expected at Michigan Growth Capital Symposium 

 Pitching companies include cybersecurity, drug developers, other tech startups  Intel Capital President Wendell Brooks to deliver keynote

and treatment of stroke, traumatic brain injury and dementia. Tuesday’s agenda will include a keynote address by Wendell Brooks, the senior vice president of Intel Corp. and president of Intel Capital; a panel discussion on the evolution of tech transfer and the role of venture capital; a panel discussion on how financial innovations are changing the industry and attracting attention from investors; and an evening networking session with a jazz trio.

Wednesday’s agenda includes a keynote address by event founder David Brophy of the Center for Venture Capital & Private Equity at the University of Michigan’s Ross School of Business; a panel on next-generation cybersecurity; a panel on the issues facing venture-backed health care executives; and a panel on how to design the most effective clinical, regulatory and reimbursement strategies for early-stage biotech companies. Online registration is available through Friday, May 11, at www. michigan-gcs.com. There are a range of pricing options, from $195 to $425. On-site registration will be available beginning at 10 a.m. May 15 at the Marriott. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

The Michigan Israel Business Accelerator plans to spur investment between the two nations.

MICHIGAN’S COMMUNITY BANK

JUST GOT CLOSER.

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Michigan Israel accelerator hires CEO By Dustin Walsh dwalsh@crain.com

The Michigan Israel Business Accelerator hired its first CEO to further spur investment between the two nations in manufacturing, mobility, defense and life sciences, among other sectors. The nonprofit hired Sandy Selinger, 48, late last month to lead its renewed effort following a rebranding in December. Formerly the Michigan Israel Business Bridge, the accelerator plans to seek a roughly $1 million operating budget, add staff in Israel and develop new programs to connect Israel’s startups with Michigan’s Sandy Selinger: To lead delegation existing corporate infrastrucin Israel. ture. Funding is expected to come from various sources, including the Michigan Economic Development Corp. Selinger’s first objective is to lead a delegation from the Ypsilanti Township autonomous vehicle test hub American Center for Mobility to Israel later this month. “The business scene, specifically the startup scene, in Israel is very fast-moving and opportunistic,” Selinger said. “In Michigan, we have very strong industries, led by manufacturing, that are interesting for many Israeli companies. These companies look to export first, and choose the U.S. for obvious reasons, so this is our opportunity to introduce those companies to the U.S. through Michigan.” Israel produces an impressive number of successful startups for a country of just 9 million people — roughly the same population as Michigan. It’s often referred to as “Startup Nation,” thanks to a growing list of entrepreneurial activity in its major cities such as Tel Aviv. Israel kickstarted its tech boom with tax cuts in the mid-1980s. A government initiative started in 1993 called Yozma offered tax incentives to foreign venture-capital investments in Israel as well as matching funds from government coffers. The

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J Michigan Israel Business Accelerator hires new CEO J Israeli-born Sandy Selinger has 20 years of leadership experience

Will lead American Center for Mobility mission trip this month J

move exploded VC-backed investments in the country — from $58 million in 1991 to $4.43 billion in 2015. IBM, Google, Apple, Microsoft and Facebook have all opened research and development hubs in the nation. Its mobility and defense sector, with ties to Michigan companies, has also drawn huge price tags. In March, Intel Corp. acquired Jerusalem-based autonomous driving hardware and software supplier Mobileye for $15.3 billion. Several local suppliers and automakers use Mobileye’s products. TowerSec, a cybersecurity startup based in Ann Arbor and Tel Aviv, was acquired in 2016 by Harman International’s automotive division in Novi. In September 2017, Henry Ford Health System started a $75,000 development contest for Israel-based startups to boost patient care by using artificial intelligence. Selinger was born in Israel and served as an operations officer and squad leader in the Israel Defense Forces’ rescue and evacuation unit. Before joining the accelerator, Selinger served as manager of the New York office of cloud-based web development platform Wix.com. He also previously served as the vice president of finance and operations for commercial production company Psyop Inc. “We knew we needed a CEO, but we never imagined we’d find someone with his (Israeli) background and professional experience,” said Mark Davidoff, the Michigan managing partner for Deloitte and chair of the organization’s board. “We call it a double bonus.” Selinger earned a bachelor’s degree from the University of Colorado and a master’s from the London School of Economics. He lives with his wife and children in Grosse Pointe Park.

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BANKRUPTCIES The following businesses filed for bankruptcy protection in U.S. Bankruptcy Court in Detroit April 27-May 4. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. J CB Services Inc., 21036 Maplewood St., Livonia, voluntary Chapter 11. Assets and liabilities are not avail-

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Community Bank President

able. Future Die Cast & Engineering Inc., 50450 Wing Drive, Shelby Township, voluntary Chapter 11. Assets and liabilities are not available. J Advanced Underground Inspection LLC, 38657 Webb St., Westland, voluntary Chapter 11. Assets: $860,087; Liabilities: $2,559,582.49. J

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OPINION COMMENTARY

What should go in this space? An aquarium, or a bigger vision? T

he $150 million attention-grabbing proposal Detroit Zoo CEO Ron Kagan floated last week to build an aquarium on the banks of the Detroit River where the Ford Auditorium once stood may force city leaders to confront a larger strategy for the riverfront. The idea of squeezing a destination attraction like an aquarium on an acre between Hart Plaza and the complex that includes the port authority building and Detroit-Windsor tunnel entrance comes with a host of added obstacles that extend beyond Jefferson Avenue. Matt Cullen, chairman of the Detroit Riverfront Conservancy, called Kagan’s idea “visionary” for the Detroit Zoo and the city, but had a few words of caution. “The rest of us have to figure out how does that all work, physically? How do you park? And how do you move around?” said Cullen, who has spent years thinking about, developing and implementing plans for activating the riverfront. To capture the region’s imagination, Kagan tossed out Chicago’s world-class aquarium on Lake Michigan as an example of what Detroit could have. But Shedd Aquarium is two miles from Chicago’s Magnificent Mile, connected by an integrated mass transit system built out while the Motor City was building its freeways and sprawling suburbs. Shedd had nearly 2 million guests pass through its marble walls last year. Just imagine the congestion created by half as many visitors descending on the foot of Detroit’s riverfront at Woodward and Jefferson avenues each year to marvel at a glass house of exotic sea life along the Detroit River. “We just need to make sure it all works,” said Cullen, principal of Dan Gilbert’s Rock Ventures LLC and member of the zoo board. This kind of cultural destination — and the $150 million price tag Kagan envisions — would have seemed unfathomable just a few years ago. The city of Detroit was circling the fiscal drain, General Motors Co. and Fiat Chrysler Automobiles were emerging from government-ushered bankruptcies and there was no shortage of Detroit-hits-rock-bottom stories in the national media. But these are boom times for Detroit and the best time for someone like Kagan to resurrect this idea as several major long-term decisions about what the new Detroit will look like loom for decision-makers and taxpayers. Seven years after the Ford Auditorium was demolished, “Ron (Kagan) is laser-focused on that site,” Cullen said. The vacant lot where the Ford Auditorium stood for 55 years as a memorial to Henry Ford and his son,

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

Detroit Zoo CEO Ron Kagan floated the idea to build an aquarium on the banks of the Detroit River where the Ford Auditorium once stood.

CHAD LIVENGOOD clivengood@crain.com

Edsel, sits in the shadow of the Renaissance Center and a central business district that’s quickly becoming more dense and congested. Just a short seven months ago, the city-owned Ford Auditorium site was offered to Amazon.com for a 275,000-square-foot office tower overlooking the riverfront and a rebuilt Hart Plaza in an ambitious new vision for Detroit’s skyline. The online retail giant ultimately passed on Detroit for its second headquarters. But that hasn’t changed the minds of some city officials who see that piece of real estate as a prime location to land Detroit’s next big prosperity-generating employer. Cullen says now is the time for Detroit’s political, civic and business leaders to come together on a vision for the Ford site, rebuilding the crumbling Hart Plaza, creating a game plan for the Joe Louis Arena site once it is torn down and deciding how the Lodge Freeway and I-375 will be integrated into the city’s riverfront gateways on the east and west sides of downtown. “That whole area down there needs to be figured out,” Cullen said. “But it will be figured out because it’s the best real estate in the city, where the riverfront and Woodward come together.” These are generational decisions that will impact what Detroit looks like and functions for lifelong residents who stuck out the bad times, visitors and new arrivals planting a stake in the city’s future.

And there’s a need to get buy-in from all parties — because the appearance of the bigwigs calling all of the shots creates simmering tensions and resentment that Detroit’s revitalization is not inclusive. This was on full display last year after Mayor Mike Duggan’s administration shut down the last block of Woodward Avenue between Larned Street and Jefferson to create Spirit Plaza without really even consulting with City Council members or nearby restaurant businesses. Cullen warns against “micro decisions” being made — like that one Wayne County officials made in a vacuum when they started building a new jail on a 15-acre site on downtown Detroit’s eastern edge. That was a costly decision for taxpayers, lacking any real sense of planning for what a center of commerce should look like. It took nearly five years to get a plan to demolish the half-built jail on Gratiot Avenue — which Gilbert says will begin late this summer — and craft a plan to build a new criminal justice complex on the east side of I-375. That was a macro-level decision by Wayne County Executive Warren Evans that could forever change the eastern gateway into Detroit’s downtown, depending on what Gilbert and Cullen are able to bring to bear in a redevelopment of the site. Detroit’s front door along the riverfront is arguably at the same crossroads now as leaders like Kagan start thinking about assets Detroit needs to compete with Chicago for money and minds. “Our problem in Detroit for a long time has been we solved things at a micro-grid level,” Cullen said. “Now we need to understand as to how it all fits together and how they interact together.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

What about the patients?

spent many years on the board of the Detroit Medical Center back when it was a nonprofit and sadly was there when it became obvious the facilities had to be sold to survive. In fact, we hired our mayor, Mike Duggan, as CEO. He did a fine job under some very tough circumstances. The DMC has been resold already once and now is owned by Tenet Healthcare Corp., a for-profit company based in Dallas. But over my time on the board, I got a chance to get to know plenty of doctors who were part of the DMC family. I was always impressed with their knowledge and particularly their dedication to their patients. They were then and are today dedicated doctors who are primarily interested in practicing medicine and helping their patients. So I am completely baffled by this current rhubarb between Wayne State Medical School and Tenet, the current owner of the Detroit Medical Center. I have a feeling that I am looking at one of those famous fights between management and labor. I am still waiting for someone to ask who is representing the patients. After all, that is what that whole institution was created for over a hundred years ago to care for, the patients — not the doctors or the administration or the medical students. The DMC has been serving patients in Southeastern Michigan, and my guess is that the vast number of doctors affiliated with one of these organizations just want to practice medicine and treat their patients. Health care has become such big business that the folks running these

KEITH CRAIN Editor-in-chief

institutions lose sight from time to time about their basic mission. It is easy to get caught up in the claims and counterclaims and accusations being hurled back and forth. No one should lose sight of the basic mission of the thousands of folks involved with the Detroit Medical Center. In a very competitive world, it seems that profit and loss has become more important than patient care. I have no idea, but I think I do, whether or not patients are represented in these talks between the DMC and Wayne State University. After all, they are an important part of any discussion but are usually ignored. Both Wayne State University and the Detroit Medical Center have been serving the people of Southeast Michigan for decades. For a long time, there has been friction between these two groups, even when the DMC was a nonprofit quite a few years ago. Their service to our community is too important to let it dissolve into constant bickering. It could be we need a modern-day Judge Landis to broker a peace. Maybe we can talk Judge Steven Rhodes into filling the role.

LETTERS

Costs show need for no-fault reform

To the editor: An April 22 column that appeared in Crain’s misses the mark entirely on the real problems with Michigan’s broken, outdated auto no-fault system. Supporters of Michigan’s auto nofault law want you to believe that purchasing car insurance is just like buying a mortgage. But there’s a big difference. Michigan’s no-fault law mandates that everyone purchase unlimited, lifetime medical benefits, the most expensive coverage in the country. Unlike buying a house, drivers have no choice in the amount of medical coverage they choose. Michigan is the only state in the nation that forces its drivers to purchase unlimited lifetime medical benefits with their auto insurance policy, even if they’re covered under health insurance, the Affordable Care Act or Medicare. This mandate is one of the biggest reasons Michigan drivers pay the highest auto insurance premiums in the country, and Detroit drivers pay more for auto insurance than any other city. Consider the toll of our broken auto no-fault law: The Zebra’s 2018 State of Auto Insurance Report found Michigan drivers pay $2,610, on average, for

car insurance while motorists in Detroit pay $5,414, on average. The national average auto insurance premium is $1,427, almost half of what drivers in Michigan pay for car insurance. It’s outrageous and needs to change. Unfortunately, big hospitals and trial lawyers will defend their “golden goose” at any cost. Hospitals routinely charge consumers three to four times more for the same procedure than other forms of insurance if someone is injured in a car accident. According to a Citizens Research Council of Michigan report on the medical costs associated with our broken, outdated auto no-fault system, a hospital’s ability to overcharge patients means “providers are not prevented from, and may benefit in, ordering and charging more for services that may provide little, no or even negative health value to the patient.” The CRC also noted that overcharging continues long after someone injured in a car accident is released from the hospital. It’s time for real legislative reform to fix auto no-fault and bring down costs for hard-working Michiganders. Pete Kuhnmuench Executive director Insurance Alliance of Michigan

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Michigan board diversity is imperative for state’s future

t’s not difficult to come up with a short list of things that likely worry any corporate board member: the state of the economy, the potential for an upstart competitor to completely disrupt the marketplace, the war for talent, or the risk of cyberattacks. For far too many corporate directors, add one more worry to this pile: the probability that the best ideas, truly diverse thinking and people with a range of professional experiences are not at the table. Fact is, many companies face this threat without knowing it. Women hold only 15 percent of the board seats of Michigan’s 100 largest companies (by market capitalization), according to a November 2017 Crain’s Detroit Business article. This same article stated that women make up only 8 percent of board seats at a sampling of smaller Michigan firms valued at less than $100 million, a figure that hasn’t budged in a decade. And nearly a third of Michigan’s top 100 companies don’t have a single woman on the board at all. It’s time that this changes — and soon. We’re proud to be part of an effort to help prepare more women for open board positions. We recently brought a powerful Deloitte program to Detroit that is helping a cohort of women executives better understand what’s needed to step into corporate board service. The Board-Ready Women Program, which convened its first Michigan class last December, is providing both educational and networking opportunities for current and retired female executives who have the experience and interest to be considered for the highest levels of leadership. There is no doubt about the interest in board service among women who have already achieved so much. They are ready to take the next step in their careers, and to serve companies that

OTHER VOICES Mark Davidoff

interest them. But it’s vital that those already serving on corporate boards focus on the board composition issue as well, and create more opportunities for capable women who are ready to serve — whether or not they come through

the Board-Ready Program. The business case for diversity could not be clearer. First, there is ample evidence that companies with women on their boards outpace firms with less gender diversity in share price, return on equity and other financial metrics. In addition, companies with boards that more closely reflect the demographics of their communities stand a better shot against challenges such as emerging technologies and global competition. Leaders with a diverse set of experiences and biographies are much more likely to bring a diversity of thinking — and that’s what boards should consider seeking. I think boards should consider

asking whether they’ve done enough to achieve that kind of diversity, and take the actions necessary to close the gap. Here are a few questions for boards to consider: J Do we have a plan in place to identify and recruit female leaders in our region (and perhaps beyond) with the experience and working knowledge of board-level issues who could serve on our board in the next 5 years – and if so, how deep is that list? J What are we doing to be sure that women rising up within the ranks of management have access to board-level discussions, and can build relationships with our board? J Do we consistently have a broad, di-

verse set of views represented in our discussions of critical issues such as value creation, leadership development and regulatory risk? These questions may help prompt board members to think of diversity as a fundamental business imperative, leading to an improvement in the representation of women leaders on boards. With this commitment, a board’s decisions may be better informed through the best ideas, truly diverse thinking, and by people with a range of professional experiences. Detroit-based Mark Davidoff is Michigan managing partner for Deloitte LLP.

TALK ON THE WEB

Re: QLine falls short of ridership goals This is key, that the QLine is about a catalyst for economic development, at least at this initial stage. Projects are popping up all over the line, projects for retail, office and residential which will bring more people to this three-mile stretch so that in time ridership will rise and costs per person will decrease creating a high density corridor. This main idea of connectivity is important... E M Parmelee It only goes 3 miles! Two things might help this city: (1) Stop trying to be like Kansas City and (2) build a streetcar that travels to more places than just up and down Woodward. The Q is a circulator (El does this in the Loop, same as Toronto's streetcar, and even the People Mover)...and circulators can serve a purpose. If Q were expanded (not to Eight Mile) but throughout the central business district, east to Grosse Pointe and west to Southwest Detroit, then maybe you increase the chance for better ridership. ... Parker in Midcity

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TWENTY IN THEIR 20S MEET THE CLASS OF 2018 TWENTY IN THEIR 20S PAGES 8-9

Cody Bailey Zain Ismail John Rogers Stella Safari PAGES 10-11

Paul Gallagher Ezekiel Harris Michael and Matthew Romine Courtney Smith PAGES 12-13

“That’s what’s going to stand us apart.”

Allison Drutchas Alyson Schramm Naeger

John Rogers, 28 Financial Adviser, The Jbara and Rogers Financial Management Group, Morgan Stanley John Rogers had two challenges when he joined the Jbara and Rogers Financial Management Group at Morgan Stanley. His father, Mark Rogers, and his godfather, Gary Jbara, were the group’s founders. So Rogers had to show to his new colleagues when he joined in 2013 that he was there because of his skill set and not because of personal relations. “My dad coached a lot of my teams when I was growing up. It’s not easy being the coach’s son,” he said. “I was held to a higher level.” The second challenge? Show his dad, his godfather, and perhaps most importantly his colleagues the value to clients of what is called impact investing. “That’s an investment style that combines market-rate investment returns with social or environmental value,” he said, an investment concept he learned in a class at Northwestern University, where he got his degree in 2012. “I needed to prove myself, which is why I wanted to bring this investment approach to the firm,” he said. In the past, so-called double-bottom-line investing — good financial

returns combined with feeling good about the social impact of your investments — got a bad name. There wasn’t enough good on the financial end. “It used to be you’d weed out the alcohol, gambling and tobacco stocks, and then your performance would suffer,” he said. “Now, instead of screening out the bad actors, you do your due diligence to find out best-in-class stocks in companies that do good things. People thought it wasn’t possible to do that and still achieve market-rate returns. We’re proving you can.” Rogers serves on what Morgan Stanley calls its Impact Investing Champions board. “I’ve been asked to coach other advisers on how to speak with millennials and institutional clients about aligning their values with their investments,” he said. He also sits on the Council of Michigan Foundations’ impact investing task force, a working group that coordinates impact investing at such foundations as the W.K. Kellogg Foundation, the Kresge Foundation, and the Max and Marjorie Fisher Foundation. — Tom Henderson

PAGES 14-15

Cody Bailey, 27 Founder, CEO and Creative Director, HUSH Entertainment Group When the old Skateland West Family Fun’s back-shop caught fire on March 29, it was disaster with a silver lining for owner Cody Bailey. The actual fire damage was limited, but almost the entire facility reeked of smoke. After buying the facility for $600,000 in 2015, Bailey planned to borrow $1.25 million to transform the roller rink into a modern family entertainment center. Now, when the building reopens at the end of June when repairs and renovations are scheduled to be finished, he estimates he’ll have spent between $3 million and $4 million on the project. The fire accelerated the project, which will halve the size of the skating rink in favor of the addition of boutique bowling lanes, laser tag, a video arcade, a bar, more food options from a full kitchen and a new focus on attracting corporate clients for group outings. It already was offering Zumba classes. The refreshed interior theme of the entire facility will be what Bailey calls “industrial-meets-nature” reminiscent of Disney’s “Avatar” movie. “I think that’s what’s going to stand us apart,” he said, noting that he attends the annual International Association of Amusement Parks and Attractions expo for ideas and insights for his business. A multi-platform marketing plan is in the works to coincide with the re-open-

ing this summer, and will be aimed at both families and corporate clients. Bailey calls the renovated facility a “multi-attraction entertainment center that’s highly themed” with a “Disney-level experience at the local level that’s affordable and attainable for everyone.” He credits a focus on customer service for boosting attendance and revenue. The business was taking in about $300,000 annually when he bought it, and last year skating alone generated $600,000 for the rink, he said. The building now gets about 100,000 customers a year, and Bailey’s goal is to grow that to 250,000. Bailey quit his full-time job as outreach director for the Lansing-based education reform effort Great Lakes Education Project in 2016 because the skating rink needed his full-time attention, and was running a deficit. He said last year put the company in the black and helped pay down debt. His entertainment empire began when he created HUSH Entertainment Group in 2013 after buying a haunted house in Westland. The success of that fueled his purchase of the skating rink, which he’ll rename Xperience Entertainment when it reopens. The haunted attraction was open for 18 days last fall, drawing 15,000 visitors and generated $250,000 — more than enough to be profitable, Bailey said. — Bill Shea

Laura Grannemann Justin Hanna Victoria Manix Meagan Ward PAGES 16-17

David Cowan Ghida Dagher Grace Hsia Marc Ledent Monica Rodriguez PAGE 18

Katie Fahey Detroit photographer Jacob Lewkow posed the 20s in front of architectural details of the Fisher Building, the Penobscot Building, the Kiesling bar, the Caucus Club and outdoors on Gratiot Avenue.

Stella Safari, 26 Detroit Director, gBETA and Owner, Safari Beauty When Stella Safari moved from gone on to raise over $400,000 in capital Congo to the United States, she was 8 and include The Lip Bar, Cellular EMT, years old, and her mother stayed be- Bogobrush and Detroit Ento. In between, Safari runs a natural hind in Africa. So she was raised by hair services company that grew her five older sisters. She saw their challenges and suc- from her decision to skip the chemicesses, and how they pushed past cals and go natural. “It’s a huge pasboundaries, and they became her he- sion and I get to connect with women on a very personal level,” she said. roes and role models. She’s into yoga and meditation — “I found a lot of my identity and my voice in my womanhood,” said Safari, “it’s helped me,” she said. She also who majored in gender studies and coaches a girls cheerleading group math and social sciences at Dartmouth and in the summer, runs a high College. “I lived a feminist life before I school entrepreneurship program even knew what the word feminism “I lived a feminist life before was.” I even knew what the word Today, she believes in the power feminism was.” of women — and of entrepreneurs to solve problems and create opportunities. “I’m fasci- that brings together young people nated by company building,” said Sa- from Detroit and Cranbrook to solve fari. She moved to Detroit as a Ven- entrepreneurial problems. “She was exceptional talent … able ture for America fellow, working for Invest Detroit, an early stage funder to blend in really well with the comof businesses. Her interest in startups munity,” said Martin Dober, senior led her to furniture maker Floyd, vice president with Invest Detroit. where she was director of operations, In the future, Safari hopes to grow and to business center Ponyride, the company and develop a venture where she was executive director. capital fund that may focus on beauty Now she leads the gBETA accelerator, products. Or on women. which provides six weeks of free training “I’m kind of driven by the mission to fast-growing companies to prepare and passions around women and them for venture funding. It’s complet- beauty and technology,” she said. — ed two cohorts. Cohort companies have Vickie Elmer PORTRAITS BY JACOB LEWKOW FOR CRAIN’S

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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 // M A Y 7 , 2 0 1 8

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“Hacking Windsor Detroit is the only cross-border chapter where we have Americans and Canadians working together. Hacking is so successful and really promotes innovation.”

Zain Ismail, 27 Senior Consultant, Strategic Support Services, Henry Ford Health System Zain Ismail, a senior consultant with strategic support services at Henry Ford Health System, always wanted to work in the hospitality industry. But growing up in Windsor as the son of a cross-border nurse and former obstetrics unit director at Henry Ford, he also heard daily stories about medicine. It was nearly 10 years ago, shortly after Henry Ford opened its West Bloomfield hospital, that Ismail met Gerard van Grinsven, president of the hospital and former executive with the Ritz-Carlton hotel company, through Ismail’s mother, Rebecca. Ismail, then 17, asked van Grinsven for advice about a career in the hotel industry. Van Grinsven told him about how health care and hospitality require similar skills — primarily empathy and a commitment to service. Ismail went to hospitality school at the University of Windsor and also took a business course with Ann Snowden, chair of the World Health Innovation Network, who repeated the advice: health care and hospitality are made of the same cloth. It was an aha moment. “I realized I could take everything I have learned with hospitality and innovation and take it to health care,” said Ismail. After graduation, he worked as a research assistant with Snowden at the Ivey International Centre for Health Innovation and then spent four years at Leamington District Memorial Hospital in

Windsor before coming “home” to Henry Ford in December 2016. Ismail works in the system’s enterprise project management office. He has worked on specialty initiatives in the oncology, orthopedics and heart and vascular services lines. For example, he helped to establish a sports medicine walk-in clinic in Novi that is being expanded across the system. But one of the most interesting parts of Ismail’s work is as a volunteer with four organizations that help to bridge resources and build connections between Detroit and Windsor. They are Rise Asset Development; Hacking Health Windsor Detroit; Detroit Windsor MedHealth Innovation Cluster; and Fast Forward Medical Innovation. Ismail is the founder of the Windsor branch of RISE Asset Development, which provides mentorship to disabled people to help them start a small business through low-interest loan programs or connections with business leaders to support their employment efforts. He would like to open a Detroit chapter. “Hacking Windsor Detroit is the only cross-border chapter where we have Americans and Canadians working together,” said Ismail, who is one of the organizers. “Hacking is so successful and really promotes innovation.” The Windsor Detroit chapter is co-sponsored by TechTown Detroit & WEtech Alliance in Windsor. — Jay Greene

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TWENTY IN THEIR 20S

Paul Gallagher, 29 President and CEO, Genesis In-Home Health Care Paul Gallagher was 18 years old and just out of Waterford Mott High School when he decided to become a caregiver to the disabled population. After three weeks on the job, he was exhausted and ready to quit. But several of his family members had disabilities and he felt a connection, so he kept working until the job clicked. “After 30 days, I was so happy to do the work. It helped with my self-esteem and humbled me,” Gallagher said. Five years later, after graduating from Oakland Community College with an associate degree in applied science with a focus on social work, Gallagher still wanted to work in caregiving — but as a business owner. “I remember driving around (after OCC graduation) and thinking about my life and what I wanted to do and

thought, ‘Why not open my own business?’ ” said Gallagher, who only took one semester of business courses. “I did a lot of reading on starting a business, running one. I love math, and that comes easy.” So on May 6, 2012, Genesis InHome Care LLC became a reality and landed its first contract through Macomb-Oakland Regional Center, a behavioral health provider. By the end of 2012, Gallagher had 10 employees with several contracts. The next year he added five more employees and another contract. “We were audited (by MORC) early on and did very well and when they need a direct service provider they sent us a referral,” he said. “We got very complex cases, maybe a person is aggressive or runs away, because we had a reputation for good services.”

Now Genesis employs 140 caregivers at 26 homes or apartments with about 70 clients. That first year, Genesis generated revenue of $418,000. By last year the business exceeded $4.1 million, he said. The company also last year purchased a 6,100-square-foot office building in Waterford. “Our biggest challenge right now is finding good caregivers. It’s about wages and turnover. We offer $9.50 to $10 per hour and when Kroger pays more, the turnover rate is high,” Gallagher said. While the national turnover rate for caregivers is about 50 percent, Genesis is at about 30 percent. Besides MORC, Genesis also contracts with Community Living Services in Oakland and Wayne counties and recently expanded to Kent County with Network 180. — Jay Greene

“I remember driving around (after graduation) and thinking about my life and what I wanted to do and thought, ‘Why not open my own business?’ ”

“O liv ne en st ab so fro be rec wh ar

Michael and Matthew Romine, 29

Courtney Smith, 27

General Manager and Regional Sales Director, Farm Field Table

Executive Director, Detroit Phoenix Cent

“Everyone wins. It helps every person in the system from the slaughterhouse all the way through to the consumer.”

As a teenager and college student, Courtney Smith learned firsthand the challenges homeless youth face on the streets. Her experiences and those of her brother, who was also homeless, led her to open the Phoenix Center: Drop In & Nurturing Center inside of Bethel Community Transformation Center in the city’s North End neighborhood in January 2017. The center gives youth ages 13-24 — a hard-to-reach demographic not typically drawn to the rules and culture of overnight shelters for adults — a place to drop in to get something to eat, shower, wash their clothes, watch television or play a video game. Her brother, seven years younger and homeless himself, was part of the group that advised Detroit Phoenix on what homeless young people needed and what would make them feel welcome. Sadly, he took his own life last year and never saw the center open. That has only spurred Smith to do even more. While running the fledgling nonprofit, Smith, who holds a bachelor of science in sociology from Eastern Michigan University, has served as a de facto case worker assisting the homeless youth who come to the shelter. She has forged partnerships with many local organizations to help them secure identification, get into school if they’re not, and get connected to employment, counseling and other help. On any given day, nine homeless youth drop in. “The most important thing we do at Phoenix Center is create a sense of community for the youth who are coming,” Smith said. “They know they are valued ... and supported.” In January, Smith launched a campaign to raise $12,000 to open an emergency shelter at Bethel. Through a crowdfunding campaign, she and Phoenix raised $7,000 and filled the gap through in-kind donations of dinners and other items. Detroit Phoenix operated the shelter through February and March,

— Matt Romine

“It is significantly more delicious to eat like this.” — Mike Romine

When twin brothers Mike and Matt Romine opened The Mulefoot in Imlay City four years ago, they brought years and continents of restaurant experience with them. They learned that, despite the rural-agricultural setting, locally sourced meat was not readily available. The brothers, with their shared passion of supporting and building the local food system, set out to fill that void. They started with a 200-head hog farm and in 2016 added a USDA-compliant butcher shop. Farm Field Table in Ferndale now delivers meat through wholesale, retail and online channels across Michigan and as far as Florida, Colorado, Washing-

ton, Kansas, Nebraska and Ohio. Its customers include restaurants like Selden Standard, Takoi and Gold Cash Gold. The butcher shop has doubled in size and grown from three employees to 20 with plans to add a second shift in the next year. The shop is easy to staff, according to Matt Romine, with people who want to stay in the food industry but are burned out on restaurant work. Additional plans include satellite butcher shops; the first one is in the works and scheduled to open within six months. The original Imlay City Mulefoot will soon transition to the Romines’ version of a local pub, Hiram’s Tavern, while The Mulefoot will find a new location, most likely

in Ferndale or Hazel Park, within the next 18-24 months. “Our original goal was to make the best food we can make, but that has changed over time,” said Mike Romine. “That goal is still our foundation but our time and efforts are also to build the town, take care of farmers, build the local economy.” Farm Field Table, along with The Mulefoot, is a multiplier of economic power, spending over $1 million at more than 25 local farms in 2018. “Everyone wins,” said Matt. “It helps every person in the system from the slaughterhouse all the way through to the consumer.” “It is significantly more delicious to eat like this,” Mike added. — Laura Cassar

“The most important thing we do at Phoenix Center is create a sense of community for the youth who are coming.”

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“Once you live in the neighborhood enough, you stop thinking about where someone is from and begin to recognize who they are.”

Ezekiel Harris, 25

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housing 19 youths. Among them were friends of Smith’s brother. Ten who stayed for the entire two months are now in stable supportive housing and either back in school or working. Smith plans to bring the program back each winter. Since its launch, Detroit Phoenix Center has engaged with 1,000 youth. The nonprofit recently secured a three-year, $420,000 grant from the Youth Hope Foundation in Oshkosh, Wis. It will enable Smith to take a salary as executive director and to hire a full-time fund development manager and a youth services coordinator/ case manager for the next year. “We would like to become a model that different cities can use to serve youth homelessness.” — Sherri Welch PORTRAITS BY JACOB LEWKOW FOR CRAIN’S

Executive Director, MACC Development A tale of two cities: While growing up the youngest of a single mother of two in Flint, Ezekiel Harris said he resented Detroit. After all, the proverbial Vehicle City and Motor City, about 70 miles apart, share similar stories of high vacancy, poverty and crime rates. “A lot that Detroit is facing, Flint is facing,” the 25-year-old said about the once-booming automotive towns. But “people were still coming to Detroit, but not necessarily to Flint, because of [Detroit’s] history.” After earning a political science degree in three years at University of Michigan, Harris, too, found himself coming to the metropolis south of his hometown in 2014 and served as a fellow with Challenge Detroit for nearly two years. “I did a lot of leadership development through different projects where I was able to consult with different nonprofits across the city,” he said. Following a stint with United Way for Southeastern Michigan, Harris joined Detroit revitalization group MACC Development as executive director in 2016. He’s spent the past two years leading the $1.5 million development of The Commons, a 12,000-square-foot café-cum-laundromat and community center near Mack Avenue and Van Dyke. “We started construction a month after I was hired,” Harris said. “I’m most proud of the people I work with and everything that came together to do it successfully.” The center is now revving up for a grand opening May 12. The café opened for business in March. After about four years in his adopted city, Harris said he has become less influenced by the Detroit he saw from afar in the headlines. Now it’s his home, a place where he can follow his passion for social impact. “I really love it and even bought a house here,” Harris said. “Once you live in the neighborhood enough, you stop thinking about where someone is from and begin to recognize who they are.” — Tyler Clifford

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TWENTY IN THEIR 20S

Allison Drutchas, 29 Counsel, Autonomous Vehicles, General Motors Co.

Congratulations

Ghida Dagher

for your commitment to the community and making Crain’s 20 in their Twenties!

VP Emerging Products, Conde Nast Northwood Class of 2008

WHERE WILL YOUR TRUE NORTH LEAD YOU?

ARLIE’S TRUE NORTH LED HER HERE Northwood University is committed to a policy of nondiscrimination and equal opportunity for all persons regardless of race, gender, color, religion, creed, national origin or ancestry, age, marital status, disability or veteran status. The University also is committed to compliance with all applicable laws regarding nondiscrimination. Northwood University is accredited by the Higher Learning Commission (hlcommission.org), a regional accreditation agency recognized by the U.S. Department of Education.

“Each word in legislation or regulatory text is a gatekeeper for this technology — it can enable or stifle development,” she said. “I make sure it enables. Every law that affects cars, from liability to traffic codes, at every level, federal, state and local, assumes that a human driver is behind the wheel. But the future is driverless. I’m the legal point guard for the push to remove legal barriers and build the framework to facilitate this transformation.” Drutchas says point guard, but she’s more of a fixer. She works directly with GM’s public policy lobbyists to propose changes, suggest legislative language and serve as the automaker’s go-to expert on law and policy. In the past 18 months, she’s worked to change legislation in seven states and drafted GM’s comments in federal regulatory proceedings. Drutchas is also an adjunct professor at the University of Detroit Mercy Law School focused on emerging mobility law. She serves on the board of the Iron Belle Trail, a $200 million project to connect 1,200 miles of trails from Ironwood to Detroit, as well as the Detroit Riverfront Conservancy’s young professionals board. — Dustin Walsh

Alyson Schramm Naeger, 29

Arlie Sisson

New York, NY

Cars are in the blood of those born in metro Detroit. Allison Drutchas is no different. She spent her summers between classes at Yale Law School as a summer associate at Honigman Miller Schwartz and Cohn and Miller Canfield, pondering her future and what it would mean to come home. “As a summer associate, you go to these boring parties where you’re always asked your interests,” she said. “I would say I was interested in autonomous vehicles. Back then, I’d have to explain what that meant because most associates said tax law, labor law or whatever their focus. That wasn’t me.” Drutchas did return home after graduating from Yale in 2015, but as an associate tax attorney for Honigman. Rewarding, but not fulfilling. But she was able to parlay her professional relationships and her interest in the legal gray area of driverless cars into a career at General Motors. Stepping in as counsel for autonomous vehicles at the Detroit automaker in 2016, Drutchas has played a critical role in influencing autonomous vehicle legislation in U.S. states and federal regulations currently under consideration.

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Co-Founder and CEO, Schramm’s Meadery When Alyson Schramm Naeger learned to be patient and pick her graduated from University of Michi- battles. And she’s proud of the family gan in 2010 with a bachelor’s degree atmosphere and quality: “He makes in international studies, jobs were the best mead in the world,” she said scarce. So she worked in restaurants proudly. Family was invaluable when her and felt uncertain about her future daughter was born prematurely at 23 career. Meanwhile, her father Ken weeks. After Madeline came home, Schramm had written and published her father “would walk around The Compleat Meadmaker while she bouncing the baby.” Her office still was in high school, and was helping has the baby gate that allowed her others start meaderies. He decided to two daughters, Madeline, 3, and create a company that created wine “Working with family is made of honey, one of the most difficult and he asked Alyson to join him in things I’ve done in my life.” establishing Schramm’s Meadery in Ferndale in 2013. She oversees accounting, hu- Amelia, 2, to spend time with mom man resources, vendor relations, re- and family. Now they spend their tail sales and front of house while her days with a nanny, but still attend many Schramm’s events. father is the main mead-maker. Sales grew 148 percent in 2016 and “He is very much the dreamer and I’m the realist. I’m the one with the 23 percent in 2017, with Schramm’s budget” who has to say ‘no, that Mead available in Plum Markets, Whole Foods and more than 400 liwon’t work,’ she said. “Working with family is one of the quor stores and markets in Ohio and most difficult things I've done in my Michigan. life,” she said. (Her mother Jean helps As the business has grown, Alyson by picking fruit and with holiday dec- has cut her hours, though she still fits orations; a sister assists with special in some tasks after her girls are in events. Ken and Alyson are co-found- bed. “I still wear many hats here,” she ers and active day-to-day.) She’s said. — Vickie Elmer PORTRAITS BY JACOB LEWKOW FOR CRAIN’S

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TWENTY IN THEIR 20S

Laura Grannemann, 25 Vice President, Strategic Investments, Quicken Loans Inc. Laura Grannemann has approached blight in Detroit like health officials approach an epidemic — by knocking on doors to find the problem. Grannemann uses that analogy to describe the program she has crafted to fight the spread of Detroit’s foreclosure-induced blight, by reaching out to homeowners before they lose their homes over an unpaid tax bill. The East Lansing native’s strategy is starting to yield promising results. Grannemann, vice president of strategic investments for Quicken Loans Inc., organized a canvass last summer of 5,000 homeowners to find out why they were behind on taxes and educate them on how to keep their homes. The hands-on approach helped 2,500 homeowners get on payment plans — and off the county’s foreclosure auction list, Grannemann said. “That told us that direct outreach

works, and we should be doing more of this,” she said. Devising strategies to stabilize and turn around neighborhoods marred by disinvestment, abandonment, foreclosure and poverty is the focus of Grannemann’s work at Quicken Loans. Grannemann has risen rapidly inside Dan Gilbert’s mortgage company in four years since she came to Detroit for an alternative spring break while a student studying international development at Georgetown University. “Laura is the kind of person people not only follow, but the kind of leader who receives loyalty because trustworthiness is in her DNA. She sets the bar high for the team around her — a true natural born leader,” Gilbert wrote in a letter nominating Grannemann for a Crain’s Twenty in their 20s recognition. As co-founder of the Quicken Loans Community Investment Fund,

Grannemann leads the Detroit company’s philanthropic efforts to keep longtime Detroiters in homes and boost home values that are critical to creating comparable sales data for lenders in a city where residential mortgages were virtually nonexistent a few years ago. In November 2017, the Quicken Loans Community Investment Fund spent $500,000 to scale the foreclosure-prevention outreach project by hiring 450 Detroiters through 35 community groups to canvass the city and knock on the doors of 65,000 properties that are chronically behind in property tax payments. They reached the 65,000th home in early April. In a few weeks before the mid-December deadline, the canvassers got 1,000 Detroiters signed up for a property tax exemption for individuals living below the poverty line, she said. — Chad Livengood

“That told us that direct outreach works, and we should be doing more of this.”

Meagan Ward, 27

Victoria Manix, 26

Co-Owner, Femology Detroit; Owner, Creatively Flawless

Vice President, Plante Moran Real Estate Investment Advisors

Meagan Ward settled on potato stir-fry and raspberry smoothies. The entrepreneur rushed home on a Monday night after a full day at Femology, Detroit’s first women’s co-working space. She hurriedly picked a recipe off Pinterest an hour before two younger women entrepreneurs showed up to talk careers and relationships over dinner. “That’s key — mixing personal and professional,” said Ward, 27, who quit her day job in 2015 to start a women-centric branding company called Creatively Flawless. “You know how they say you can’t mix personal and business? It’s not true for women.” Ward founded Femology to connect the sorts of women and clients with whom she chats about scaling, building strategy and visual branding. She and co-founder Ashleigh Brock have had 50 members and aim to grow to 75 by July, their one-year mark. They plan to move within a year from 350 square feet to a 2,000-square-foot space that’s more open and allows them to add features their members want: A computer lab or designated photoshoot room, for example. Femology provides the usual shared workspace amenities. But it’s also an extension of Ward’s longtime mission to pull women in business toward each other, from hosting lunches while at Western Michigan University to creating support organization The Powerful Women and speaking on empowerment in Tbilisi, Georgia, for the U.S. Embassy. Her name now appears on an official list of expert speakers on whom embassies across the globe can call. But there’s still empowering to be done in Detroit. Ward met one of the mentees she hosted for stir-fry, 22-year-old Alexis Wilson, after Wilson sought space at Femology last summer. “Ever since then, (Ward) would randomly send me opportunities” and got her a major new client, Wil-

“It’s a blessing and a curse at the same time. Obviously there are a lot more expectations with having that title, but at the same time, you grow into it.” “You know how they say you can’t mix personal and business? It’s not true for women.”

son said. “I got this huge, amazing company (as a client) because of Meagan ... “I texted her and asked if she would mentor me. Whatever time she had, I was willing to take. She was like, ‘Absolutely. We can totally do this.’” — Annalise Frank

Tori Manix grew up in a successful real estate family. But she’s blazing her own path in the industry. The 26-year-old vice president for Southfield-based Plante Moran Real Estate Investment Advisors is on the front lines of the Ilitch family’s District Detroit efforts and played a key role in PORTRAITS BY JACOB LEWKOW FOR CRAIN’S

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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 // M A Y 7 , 2 0 1 8

Justin Hanna, 29 Attorney, Jaffe Raitt Heuer & Weiss P.C. On June 11, 2017, Justin Hanna’s fiancee, Nora Youkhana, called him with alarming news. “They’re rounding up our people.” ICE agents were showing up at doorsteps across metro Detroit as part of a federal push to step up immigration enforcement. They had detained for deportation over 200 members of the Chaldean- and Iraqi-American communities. That night, Hanna, also Chaldean, did not sleep well. The next day at work as an attorney at Jaffe Raitt Heuer & Weiss, P.C., Hanna was distracted, trying to figure out a way to help. That’s when firm founder Ira Jaffe walked into Hanna’s office to talk about the situation and offer the firm’s support. As a young associate, Hanna was already successful at the practice; he had nearly 20 deals under his belt with an aggregate value of over $400 million. But that was corporate mergers and acquisitions and commercial real estate transactions. This was immigration law. Still, within a few hours Hanna put together an action plan. To start, the firm made a large contribution to CODE Legal Aid to help people get representation. Then Hanna recruited and spearheaded a team of over 20 Jaffe attorneys and paralegals of all ages, ranks, religions and ethnicities. “Our boardroom was turned into a

6 the deal that brought about one of the largest residential development projects planned for the 50-block area north of downtown. She was integral in managing joint venture negotiations on six planned multifamily projects — four historic renovations of long-vacant buildings and two new construction — slated to bring nearly 700 units to the area in the next several years. In addition, she was instrumental in securing $350 million in debt for several new developments that are expected to include office, retail and parking uses. She declined to reveal details about the projects. In her role, Manix, a graduate of the University of Pennsylvania, is responsible for things like financial analysis and capital planning. She also tackles development strategy. That hat includes analyzing whether projects are financially viable, whether they should be built by the Ilitch family’s Olympia Development of Michigan or under a joint-venture structure and other aspects of the process. She has also become the youngest vice president in Plante Moran’s history. “It’s a blessing and a curse at the same time,” Manix, the daughter of Doug Manix, president of Troy-based construction firm Kirco Manix, said with a laugh. “Obviously there are a lot more expectations with having that title, but at the same time, you grow into it. There is a lot more responsibility of managing people now as a supervisor where there wasn’t before.” Manix, who graduated from Lahser High School and then went east and spent four years playing varsity volleyball at Penn, has much more ahead of her. She’s working on a master’s degree in real estate from Georgetown University and eventually plans to branch out on her own to develop her own projects. — Kirk Pinho

“If you have the ability to help, then you have the obligation to help.”

command center,” Hanna said. With the help of the firm’s immigration group, the team identified 16 families needing representation then drafted and filed 32 emergency motions. “I’m a corporate and real estate attorney, so it was like drinking from a fire hose to learn all the immigration law so quickly,” Hanna said. With Hanna and his team’s efforts, at least two affected individuals were re-

turned to freedom, with their green cards fully reinstated. By assisting remaining detainees through bond hearings, at least 30 people have been released and reunited with their families. “If you have the ability to help, then you have the obligation to help,” Hanna said. To date Jaffe has contributed over $180,000 worth of services toward these combined efforts. — Laura Cassar

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TWENTY IN THEIR 20S

David Cowan, 28 Director, Public Spaces, Programming, Downtown Detroit Partnership When David Cowan of Downtown Detroit Partnership received the assignment of planning and launching Beacon Park, he met it with a mix of feelings. In terms of size, scope, visibility and stakeholders, it was the biggest project he had ever taken on. But the opportunity to experiment and create something new overrode any initial apprehensions with excitement. After only three months of planning, DTE Energy-sponsored Beacon Park launched with a highly successful fourday grand opening in July 2017. The space continues to draw crowds, according to Cowan, with unique events like “Impulse” — an installation of light-up seesaws — as well as Detroit’s first Night Market series, outdoor spin classes, a “silent disco” and a large heated tent for screening movies. Beyond that, Cowan said, the park, a 1.5-acre green space at Cass and Grand River avenues, has acted as a catalyst for local development, bringing new life and vibrancy to the area — the new restaurant Lumen, for example, which opened in April and

now employs over 50 people. As a native Detroiter who grew up in the Green Acres and Midtown neighborhoods and on Grosse Ile, making the city more beautiful, fun and active is both a professional and personal goal for Cowan. “Downtown is a place for all to enjoy and access,” said Cowan, who plans over 1,000 events and programs annually, hosting over 2 million people. “Ninety-five percent of our events and programs have been designed to be free and open to all, which has resulted in a vibrant cultural life across the downtown.” In his position, Cowan manages more than 400,000 square feet of downtown public space — including Campus Martius Park, Capitol Park, Cadillac Square, Grand Circus Park, The Woodward Esplanade, and Spirit of Detroit Plaza — and a multi-million dollar budget which combines earned and contributed revenue made up of over 40 local and national corporate sponsors and media partners. — Laura Cassar

Monica Rodriguez, 28 Manager, Detroit Promise Path, Detroit Regional Chamber of Commerce When Monica Rodriguez hires staff for Nippon Sushi Bar, the Bloomfield Hills restaurant she owns and runs, she is reminded of the importance of her other job, encouraging and supporting Detroit students to complete community college degrees. “Almost never is a degree earned” by applicants who list community college classes. “Any of the people at the restaurant could have been one of my kids.” Rodriguez works at the Detroit Regional Chamber of Commerce on the Detroit Promise, a program that cov-

ers tuition and fees for full-time college and university students from Detroit. As the manager of the Detroit Promise Path, her job is to make sure those students attain their degrees. She manages five coaches who help students manage issues, complications and their mindset. The Detroit Promise Path has expanded from an initial cohort of 400 students to more than 1,500 students, and an early impacts analysis by research firm MDRC shows significant increases in enrollment and persistence.

Grace Hsia, 28 Founder, Warmilu After missing revenue targets, Grace Hsia had to be honest with herself and with the direction of her startup venture Warmilu LLC. “I learned that you live or die based on your profitability,” Hsia said. “We had to humble ourselves.” Hsia, 28, founded Warmilu (“warm” and “I love you”) in 2011 as a materials science and engineering student at the University of Michigan. The company designs and manufactures nonelectric infant warming blankets and reusable heating packs. Warmilu’s mission is to manufacture and distribute its products

across the U.S. and abroad — a challenging feat made more complex by strict FDA and health and safety regulations. It has subsisted mostly on grants, as Hsia and her team of four transition the company from a bootstrapping startup to a sustainable operation. After coming up short of the $100,000 sales goal for last year, Hsia was forced to re-strategize. The chief operating officer, president of business development and two medical doctors on staff were cut. Instead of folding under pressure, Hsia was determined to pinpoint the problems and lift the business back

“It’s good work,” she said. “I do believe education is the tipping point — the difference to these students.” The sushi restaurant, she says, is a recent addition, providing a new challenge and it’s “really profitable.” She acquired it from her ex-husband and works there mainly when her two children, Eva, 3, and Marco, 1½, are in bed. “I can’t imagine a world where you raise young kids without a family around,” she said. Her help comes from aunts and uncles, a nanny and a babysitter too.

“Ninety-five percent of our events and programs have been designed to be free and open to all, which has resulted in a vibrant cultural life across the downtown.”

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“How do you identify the problem, how do you identify the metrics and how do you do better? That’s what I had to do better.”

up. She realized there needed to be more of an emphasis on developing a sales strategy and building a pipeline of customers. “How do you identify the problem, how do you identify the metrics and how do you do better? — That’s what PORTRAITS BY JACOB LEWKOW FOR CRAIN’S

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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 // M A Y 7 , 2 0 1 8

“When I came on board here, I was told I had to work six months here and figure it out. My main role is to monitor the project budget and schedule and make sure everyone is on the same page.”

Marc Ledent, 24 Her other side gig fills her “creative buckets.” Rodriguez photographs babies who are just a few hours old and usually still at the hospital. She manages everything by being really organized, prioritizing people and especially her children and her team. “I really regulate my own contributions and my own give and my take,” she said. “Am I meeting my own standards? Is this filling me up in a way that is meaningful?” She attended University of Southern California as a first-generation college student. “I didn’t know what a major is,” she recalled. She earned a master’s degree in education in urban pedagogy from University of Michigan in 2013. “She’s an incredible motivator of young people,” said Jim Jacobs, retired president of Macomb Community College. — Vickie Elmer

I had to do better,” Hsia said. Then came a breakthrough. Late in March, Warmilu received FDA clearance to market and sell its warming packs in the U.S., clearing a critical hurdle it didn’t expect for at least another year. Those credentials make it far easier for the company to distribute in different countries now. The company also won a $50,000 grant from the Atlantic Pediatric Device Consortium. Hsia said the FDA clearance will change the course for Warmilu as it looks toward sustainability. She said she is working with Doctors Without Borders to try the heating device and is in talks with several health care companies. The company is also looking to hire consultants for sales, business development and production. — Kurt Nagl

Construction Project Manager, Wayne State University Marc Ledent came into his position as construction project manager for Wayne State University almost by chance. The 24-year-old, who had planned on being a teacher, took a summer job as a concrete tester during college and got the construction bug. He hasn’t looked back, spending time with HNTB Corp., which is based in Kansas City but has an office in Detroit, and a brief stint in the Oakland County Water Resources Commissioner’s office before joining WSU. Today he’s overseeing construction of the $59 million Mike Ilitch School of Business, where students not much younger than he is will start learning come fall, and expects to soon manage the $65 million Hilberry Gateway Performance Complex project, which is slated to expand the theater with a new lobby, jazz center, learning space and performing arts labs. He had only been on the job a few months when Ledent, who graduated from the University of Michigan-Dearborn, was thrust into a leadership role following his supervisor’s retirement. “It kind of fell to me at that point,” Ledent said. “When I came on board here, I was told I had to work six months here and figure it out. My main role is to monitor the project budget and schedule and make sure everyone is on the same page.” He said he’s had to put in time offhours to get up to speed on subjects he’s not well versed in. But all the hours are worth it, the Lincoln Park native said. “It’s the opportunity to come back and work in Detroit and help bring everything back up and build this city into what it once was,” he said. — Kirk Pinho

Ghida Dagher, 29 Director, Government Partnerships & Community Affairs, United Way for Southeastern Michigan Ghida Dagher is often “the only” in a sulting services that understood the room. The only one of her ethnic group. diverse nature of the community, she Sometimes the only woman. And often co-founded TwoFiveFour Consulting. “Great initiatives were being the only one under the age of 30. As director of government partner- kicked up to legislative, but there was ships and community affairs at the no one there to champion them,” United Way for Southeastern Michi- said Dagher, who moved to the Unitgan and co-founder of consulting ed States from Sierra Leone with her firm TwoFiveFour, Dagher is looking family at age 9, seeking asylum. “It was very frustrating. I wanted to get to change that. One way is through fellowships. those champions elected, people Dagher has started one in every posi“Great initiatives were being tion she has held. “It’s part of leadkicked up to legislative, but ership to make sure there was no one there to there is someone to champion them. I wanted to take your place,” Dagher said. “It’s get those champions elected, important to develpeople that reflect the diversity op leaders and put of Southeastern Michigan.” them on a ladder of mobility.” In an impressive list of achievements at United Way, Dagher lists the that reflect the diversity of Southeastcreation of a Public Policy Fellowship ern Michigan.” Since its launch in 2016, TwoFive— an opportunity for students and recent graduates in Southeast Michi- Four has trained over 200 aspiring gan, particularly women and people candidates from underrepresented of color, to explore careers in public communities to run for office, directpolicy and advocacy work — as her ed political campaigns for five candidates and successfully elected four, favorite. Establishing an advocacy fund to ex- including the only Muslim state legpand the capacity of local organizations islator in Lansing, State Rep. Abdulis another point of pride. The fund has lah Hammoud of the 15th House Disinvested $370,000 in community advo- trict, Dearborn. “This is not a cookie cutter world and cacy work in the last two years. Describing herself as a “doer by na- neither should be the services that supture,” when Dagher saw a need for con- port candidates.” — Laura Cassar

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

TWENTY IN THEIR 20S

Katie Fahey, 28 President, Voters Not Politicians Katie Fahey orchestrated an all-volunteer army of Michigan residents to gather more than 425,000 voter signatures to change the way legislative district boundaries are drawn — and it might not have happened without clipboards. Fahey, the 28-year-old founder and president of Voters Not Politicians, learned quickly last year that gathering signatures for a citizen-led initiative to change the state constitution would take more than boots on the ground. It would take supplies, namely extra-long clipboards, to dispatch volunteers to street corners, fairs and festivals. And at $2 or $3 apiece, the prospect of a bulk purchase of 5,000 clipboards was not financially feasible for a campaign operating on a shoestring. “Clipboards were going to cost more than the cost of printing petitions,” Fahey said. As Fahey built an organization last spring, the group’s volunteers would often problem-solve in real time through social media. On the group’s Facebook page, Andrew Banka of Ann Arbor came forward and said he could mass produce 5,000 clipboards from masonite hardboard at his work shop, Airflow Sciences Corp., in Livonia.

In a matter of weeks last summer, you’re interested in doing this as well, the citizens group solved its clipboard please let me know.” conundrum — at 10 cents apiece. “Quickly, I got a lot of people mes“That is the story of our campaign,” saging me, asking ‘How can I help?’” said Fahey, who designed recycling Over the winter of 2017, Fahey and and environmental sustainability prothe disparate band of Facebook friends grams before she launched an anstarted studying redistricting laws and ti-gerrymandering crusade. She recourt rulings in other states to try to cently quit her job as a program craft a proposal that could pass constimanager for the Michigan Recycling tutional muster in Michigan. Coalition to run the Voters Not PolitiWith an abundance of eager voluncians campaign full time. teers, Fahey designed the campaign to Voters Not Politicians has pulled off have 14 regions with a regional director a feat that’s nothing short of remarkin charge of 300 captains, who then had able in modern Michigan politics. teams of four to 60 people each that Well-financed special interest groups gathered signatures in all 83 counties. typically spend between $1 million Over 110 days between August and Deand $2 million for paid street workers cember last year, the teams collected to gather signatures. 425,000 signatures, providing padding Until Fahey’s campaign came along, above the minimum needed in the the only groups seen as having the stateevent of a legal challenge, she said. wide grassroots networks needed to Fahey insists she’s an independent marshal volunteer signature-gatherers voter who just wanted to change a are the anti-abortion group Right to “Quickly, I got a lot of people messaging me, asking ‘How can I help?’ ” Life of Michigan and the state’s two PORTRAIT BY JACOB LEWKOW FOR CRAIN’S largest labor unions, the United Auto Workers and ing approval for the Nov. 6 ballot from Fahey’s quest to put a proposal be- two-party political system that has left the Michigan Education Association. the Board of State Canvassers). fore voters to establish a citizens com- people dissatisfied. Several people who got involved in “To me, that meant we needed a sysBut Fahey always emphasized, “we mission for redistricting started with a the campaign were skeptical they have people power,” said Rebecca Facebook post two days after the No- temic change,” she said. “This is somecould overcome the signature-gather- Lenk, a financial analyst from Canton vember 2016 election: “I’d like to take thing that should be fair no matter what ing hurdle (the petitions are still pend- who volunteered to collect signatures. on gerrymandering in Michigan, if party you support.”— Chad Livengood

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C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

Notable Women in Finance navigate restructurings, advise on acquisitions and lead mergers. Their super powers are finding cost savings and new sources of revenue for their companies. They collaborate; they mentor. This special report profiles women who work in finance roles in companies in Michigan â&#x20AC;&#x201D; from automotive to health care to nonprofits. The women were nominated by their peers at work and in the community. Crain Content Studio leaned on the expertise of advisors in the business community in developing the criteria for selecting those featured here. Share this report online at crainsdetroit.com/WomenFinance, and watch for more Notable Women reports in 2018.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

MARGARET AMSDEN

JENNIFER BACARELLA

MARY BAKHAUS

Shareholder, Tax, Clayton & McKervey PC, Southfield Funds managing: $6.5 million Education: Master of Science in Taxation, Walsh College Certifications: Certified Public Accountant, certificate in Industrial and Organizational Psychology

Executive; Director of Firm Development, Sigma Financial Corp., Ann Arbor Funds managing: $20 million+ Education: Bachelor of Business Administration in Finance, Siena Heights University Certifications: Accredited Investment Fiduciary (AIF), Certified Wealth Strategist (CWS) and Series 7, 24, 63, 65, and 99 licenses

Senior Financial Life Advisor, Telemus Capital LLC, Ann Arbor Funds managing: $300 million Education: Bachelor’s degree in Art History, Wayne State University

Princi Funds Educa Certi 7, 63

Margaret Amsden leads Clayton & McKervey’s tax practice, writes the company’s tax-related articles and provides internal training and external presentations on tax-related issues. The accounting firm credits Amsden, a member of the Transaction Services team, with contributing nearly $540 million in business activity in the past five years. Through an initiative called Achieving Success Together, she provides leadership to accounting firms that serve clients outside of Clayton & McKervey’s scope. Her positive, can-do attitude makes her an ideal mentor. Amsden actively engages and promotes the careers of women on her team and provides leadership to women’s programming for the Association for Corporate Growth. “What impresses me most about Margaret is how she models the way for our next generation of leaders,” said Rob Dutkiewicz, president of Clayton & McKervey. “Not only is she recognized as one of the most talented tax professionals, I have yet to find a better teacher. She never misses an opportunity to counsel others.” A member of the Walsh College Tax Advisory Board and Five Star Wealth Managers in Detroit, she also serves on the board of the Financial and Estate Planning Council of Metro Detroit and is treasurer for and a member of the Association for Corporate Growth. Amsden also is active with the Boys and Girls Club of Oakland and Macomb counties.

Since joining Sigma Financial more than 20 years ago, Jennifer Bacarella has recruited more than 1,000 company representatives, orchestrated two clearing-firm changes and started a new broker dealer firm. When the partner in the broker dealer firm decided to sell its share 12 years later, she handled the buyout and transition to Parkland Securities.“Jenny is one of those rare individuals who has the knowledge base, experience and insight to lead,” said John McClellan, chief compliance officer at Sigma Financial. Bacarella manages a staff of 115 along with her own three-team department, which includes Licensing, Firm Development and Relations. She also is head of the Team Building Committee and manages her own book of business. In recent years at Sigma, she designed and implemented Discover, Establish, Lead, Inform Verify, Execute and Review (DELIVER), which allows employees who discover an issue to seek answers and deliver results rather than passing issues from representative to representative. She also started the company’s Women’s Forum. Bacarella also is a member of Women in Financial Services (WIFS). “‘If it’s important to you, it’s important to me.’ This is Jenny’s infamous line. She has the ability to put herself in everyone else’s shoes,” said Kristi Delongchamp, a WIFS member.

“Mary is one to do the hard work, roll up her sleeves, dig deeper and peel back more layers to get to the root issue.” — CHARLENE REARDON, ABOUT MARY BAKHAUS

Possessing top-notch analytical and problem-solving skills, Mary Bakhaus developed a fixed-income bond strategy and founded Beacon Investment Co. in 1982. When Telemus Capital acquired Beacon in 2006, Bakhaus stayed. Now she leads the Ann Arbor office and manages direct-client funds and $2.8 billion as part of the Telemus Investment Committee. Bakhaus, who works with high networth individuals and institutional investors on reaching their financial goals, is responsible for managing the firm’s taxable and blended fixed-income strategy. When the pressure is on, colleagues say you want Bakhaus in the room. Last year, she was integral in the acquisition of Chicago-based Barrington Strategic Wealth Management, which added a fourth office and $350 million under Telemus’s management. “Mary is one to do the hard work, roll up her sleeves, dig deeper and peel back more layers to get to the root issue. Helping people make strategic choices for their own financial future to ensure their independence in retirement is not a job for her, it’s something she truly enjoys doing,” said Charlene Reardon, senior financial life advisor at Telemus. An advocate of the advancement of women in the industry, Bakhaus mentors women in her field. She also volunteers on the Investment & Finance Committee for the Ann Arbor Area Community Foundation.

Congratulations Peggy! The Auto Club Group congratulates our very own Margaret Scheske for earning Crain’s Notable Women in Finance Award. Your exemplary leadership and commitment to the AAA mission are inspiring, and we are proud to have you on our team.

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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 // M A Y 7 , 2 0 1 8

ANGELA BARBASH

LAURA BATES

NICOLETTE BATESON

MARLENE BEACH

Principal, Revalue LLC, Ypsilanti Funds managing: $19 million Education: Studied at Eastern Michigan University Certifications: Investment Advisor Representative and Series 7, 63 and 65 licenses

Corporate Vice President, Underwriting, Atain Insurance Companies, an H.W. Kaufman Group company, Farmington Hills Funds managing: $100 million Education: Bachelor of Arts in Economics and History from Open University in London, England Certifications: Associate of the Chartered Insurance Institute (ACII), the British equivalent of Chartered Property Casualty Underwriter (CPCU) certificate, and Associate in Surplus Lines Insurance (ASLI) designations

Chief Financial Officer/Treasurer, Great Lakes Water Authority, Detroit Funds managing: $1.1 billion Education: Master of Public Administration, Eastern Michigan University Certifications and licenses: Certified Public Accountant

Principal, UHY LLP, Farmington Hills Funds managing: $3.2 million Education: Bachelor of Business Administration, Accounting and Business Management at Davenport University Certifications and licenses: Certified Public Accountant, Certified Fraud Examiner, Certified Valuation Analyst, firefighter and instructor, emergency medical technician and instructor, and CPR and first aid instructor

Angela Barbash co-founded Revalue in 2013 without receiving outside investment funds. The company’s goal is to serve value-driven rather than transaction-driven organizations and investors. Under her direction, the company helped found the United Way of Washtenaw County Financial Stability Coalition and the National Coalition for Community Capital. “Angela is a committed visionary in the impact investment space,” said Bill Stoddart, founder and president of NorthFork Financial LLC. In recent years, Barbash was integral to the team that helped pass the Michigan Invests Locally Exemption (MILE) Act in Michigan. The legislation, referred to as crowdfunding for debt and equity, permits a small business to sell securities in its business to Michigan investors and individuals primarily located in Michigan without registering its securities. In addition, Barbash is a judge and mentor for a business plan and entrepreneur competition called Pitch Ypsi, which is supported by Ann Arbor SPARK, Varnum Law and DO:BETTER. She also was a founding member of the National Coalition for Community Capital (NC3) in 2016 and serves as board chair. “Angela Barbash is at the forefront of a movement that has the potential to alter the wealth disparity in this country,” said Danielle Milner, partner at DO:BETTER. “Angela is nationally and locally respected, and there’s no doubt why. She’s a resilient force for good.”

Laura Bates, who is responsible for growth, profitability and management of Atain, handles a book of business of more than $100 million. Since joining the company in 2015, she has helped the company grow through her strength as a team builder and by defining clear strategies for assessing company policies and improving team efficiencies through restructuring and cross-training. As a creative thinker, Bates works with the team to find solutions to write insurance risks. Where other competitors may hastily decline a policy submission, she finds ways to cover the risks and mentors team members in a forward-thinking, profit-focused approach. “Team members are very excited with the improvements she has made in terms of clarity, objectives and building a culture of success,” said Chris Zoidis, corporate senior vice president of the Special Risk Division at H.W. Kaufman Group. In 2016, she was promoted from associate vice president of this division. “The underwriting focus has grown significantly under her process-driven leadership, and her holistic view of insurance has been an essential factor in a systemwide overhaul to Atain’s enterprise system for quoting insurance policies,” said Dan Muldowney, CEO of Atain Insurance Companies.

Nicolette Bateson played a crucial role in transforming the Detroit Water and Sewage Department into the Great Lakes Water Authority, which serves 40 percent of Michigan’s population. She helped navigate the 2014 refinancing of $1.6 billion in bonds, saving the organization more than $250 million. A $1.3 billion inaugural bond sale resulted in cash flow savings of more than $309 million over the life of the refinanced bonds and saved more than $20 million in operating costs. Thanks to Bateson’s strategic leadership, GLWA earned the 2017 Midwest Deal of the Year Award from The Bond Buyer magazine, and three credit agencies upgraded ratings in 2016. A strong believer in collaboration, Bateson manages more than 110 employees and ensures there is a finance, accounting, procurement or transformation team member in every GLWA facility to eliminate working silos. “Nicolette was instrumental in working with the MSU Extension Center for Local Finance and Policy on the issue of local government legacy costs in 2010 and 2011. …This 2011 research was the foundation for the facts and evidence that helped drive the legislative debate in 2017 and led to the passage of Public Act 202 of 2017, which was designed to begin to address the Michigan local government legacy cost problem,” said Eric Scorsone, associate professor and director at Michigan State University.

Marlene Beach not only served as a medical and training officer for West Michigan’s Bridgman Fire and Rescue Department and developed a community-wide CPR training program but she also was treasurer of the town’s school district. “Marlene penned a grant that enabled us to get certain pieces of equipment including a fire prevention trailer,” said Jeff Starbuck, Lieutenant of the Bridgman City Fire Department. Since then, she has earned two promotions at UHY — from manager to senior manager in 2017 and senior manager to principal in 2018 — for her superior leadership, drive and client-service skills. A mentor to other female employees, Beach is a key player in her firm’s government services group. “Marlene exhibits all the qualities a good governmental finance expert could possess. Whether dealing with complex matters on engagements, from the smallest to the largest profile clients, pressure with deadlines or the ability to effectively communicate with her clients and associates, she personifies the term professional,” said Ed Plawecki Jr., general counsel and director of Government Relations at UHY. Beach is a member of the auditing and fraud task forces and an instructor for the Michigan Association of Certified Public Accountants.

Congratulations! the only thing she’s missing is a cape. Congratulations to Courtney Lowman on her nomination for the 2018 Notable Women in Finance in Michigan award! Courtney knows being a finance executive takes more than her impressive expertise. It’s the relentless drive to build a great culture and inspire the next generation of women in finance that is her true superpower — and what makes her such a great leader.

LEARN MORE ABOUT US: ALLY.COM

@ALLYFINANCIAL

aLLY

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

KAREN BELANS

MICHELLE BROWN

RENEE BURKHART

CYNTHIA CLEMENCE

Chief Financial Officer, Detroit Regional Chamber, Detroit Funds managing: $20 million Education: Bachelor of Business Administration in Accounting and Finance, University of Michigan - Dearborn Certifications and licenses: Certified Public Accountant

Chief Financial Officer, Butzel Long PC, Detroit Education: Master of Business Administration, Walsh College

Director of Accounting, PTM Corp., Fair Haven Funds managing: $52 million Education: Bachelor of Accountancy, Walsh College Certifications and licenses: Certified Public Accountant, tax certificate

Senior Vice President, Operations and Chief Financial Officer, Trinity Health, Livonia Funds managing: $18 billion Education: Bachelor of Accounting, Syracuse University Certifications: Certified Public Accountant, Fellow of the Healthcare Financial Management Association

Detro Funds Educa Michi

As head of financial management, budgeting, auditing and tax-planning strategies for the Detroit Regional Chamber, Karen Belans reversed negative-fund balances and maxed-out debt lines and grew cash investments to more than $15 million. Belans manages the organization’s risk management, information technology and building operations. She also participates in strategic-planning initiatives, including the Chamber’s Forward Detroit economic development fundraising strategy. In recent years, she led the $750,000 purchase of Benefit Corp. in San Diego through the Chamber’s National Commerce Group, forming one of the largest chamber affinity programs in the country that provides discounts to the Detroit Chamber’s more than 100,000 members and provides $3.5 million yearly to its affiliates. She also established a formal benchmark for cost sharing across organization entities and established an investment committee. Belans also serves as treasurer for the Executive Board of Crime Stoppers and serves on its finance and audit committee. “Her input and advice regarding not only our financial stability but our mission in general has been invaluable. Although she is extremely busy with her core job at the Chamber, she has always provided us with the time and energy needed whenever called upon,” said Dan DiBardino, president and executive director at Crime Stoppers.

Butzel Long promoted Michelle Brown to CFO from director of Finance in 2016, a position that is well-earned. In the past five years, Brown has served as a key advisor to the finance committee and Board of Directors, handled the financial analysis and integration of three mergers, and boosted the firm’s revenue by 15 percent. She also led cost-saving initiatives, including real estate restructuring, that reduced overhead per firm lawyer by about 20 percent and improved cash flow and reduced baddebt write-offs by reducing receivables. Called a visionary and expert problem solver, she analyzes hourly billable rates, alternative fee structures and comprehensive profitability and monitors regulations regarding corporate taxes and financial reporting. Moreover, Brown mentors finance and accounting staff and directs training and development. “Michelle is a key member of our management team who has continued to grow into the responsibilities of a C-level position,” said Justin G. Klimko, president and managing shareholder. “We value her intelligence, diligence and integrity in this important role.”

Renee Burkhart started at PTM in 1998 as a receptionist and worked her way up to director of Accounting in 2015 because she’s a dedicated team player who looks for ways to improve herself and methods of operation. A passionate and trusted leader, Burkhart has played a crucial role in saving the organization $500,000 in taxes and in driving its record-breaking profits in 2015. She also helped the company save $150,000 over three years when it transitioned to a self-insured workers’ comp program and was team lead in its implementation of a new ERP system. Moreover, when PTM’s founder died in 2016, Burkhart worked diligently to ensure a smooth succession in ownership and navigated the company through the extensive tax transition process. “Renee has great technical as well as practical knowledge of the financial and operational aspects of the business. She is a true professional who approaches all that she does with contagious enthusiasm,” said Jim Goerlich, CPA, CGMA, principal at Rehmann. In addition to influencing numerous women at PTM over the years, Burkhart, a member of the Michigan Association of Certified Public Accountants, most influenced her own daughter, Ami Moeller. Moeller attended “Bring Your Child to Work Day” 20 years ago and now is a PTM program manager.

Cynthia Clemence is “smart, hardworking and dedicated to her work.” She oversees the financial operations of Trinity Health’s 94 hospitals and 109 continuing care facilities, home agencies and outpatient centers. “Cindy’s contributions to Trinity Health over her 27-year career are immeasurable, as the organization has grown from a modest regional system to one of the largest national systems, with over $18 billion in revenue,” said Dr. Rick Gilfillan, CEO of Trinity Health. Over the past five years, Clemence played an integral role in the health system saving $1 billion. In 2013, she helped achieve more than $300 million in “synergy savings” from the merger of Trinity Health and Catholic Health East. More recently, she led restructuring and cost-reduction initiatives that resulted in another $700 million. In addition, she coordinated a more than $340 million bond issuance for the hospital system. Still, Clemence dedicates several hours a month to mentoring. “Cindy rose to an executive position in health care finance during a time when there were very few women in the field. The breadth and depth of her finance knowledge, her gift for leadership and her extensive volunteer contributions make her an inspiration not only to women but to all finance leaders in these challenging times,” said Joseph Fifer, president and CEO of the Healthcare Financial Management Association.

Congratulations to Rita Sola Cook, Recipient of Crain’s Custom Media 2018 Notable Women in Finance in Michigan Our Michigan Bank of America Merrill Lynch family proudly salutes Rita for this recognition. We honor her for her leadership and commitment. Rita exemplifies the qualities that define our culture: integrity, creativity, client advocacy and teamwork. Thank you Rita for your inspiration — and your work in advancing diversity and inclusion in Michigan and beyond!

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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 // M A Y 7 , 2 0 1 8

MELINDA CLEMONS Detroit Market Lead, Capital Impact Partners, Detroit Funds managing: $30 million Education: Master of Business Administration, University of Michigan Hired as a loan officer in 2014, Melinda Clemons’s ability to leverage relationships that drive projects and solve problems resulted in her last two promotions. In 2016, Clemons, who oversees Capital Impact’s lending activities in Detroit, developed and implemented the company’s Equitable Development Initiative. The initiative seeks to ensure that the real estate industry reflects Detroit’s diversity and helps minority developers scale up through training, technical assistance, one-on-one support and financing. Over the past five years, she has worked toward Detroit’s revitalization by originating loans to seven neighborhood projects; working to stabilize the real-estate market in Midtown; and by managing financing for the Shoppes at Woodward, the Coe row houses in West Village, and an 18,000-square-foot commercial space near the Ralph C. Wilson Jr. Foundation. “Melinda truly embodies the city’s unofficial slogan, ‘Detroit Hustles Harder,’” said Ellis Carr, president and CEO of Capital Impact. “Whether closing a transformational loan in an under-invested part of the city, advocating with city officials for a new program, or serving as the voice for those who often go unheard, Melinda is at the forefront of advancing equity, opportunity and inclusion at Capital Impact.” Editor’s note: At press time, Clemons was named senior director with Enterprise Community Partners, which finances and builds affordable housing, in Detroit.

RITA SOLA COOK

Midwest Region Executive of Global Commercial Banking, Bank of America Merrill Lynch Education: Bachelor’s in Accounting, Governors State University Certifications and licenses: Certified Treasury Professional; Series 7, 24, 63 licensed securities professional As head of the Midwest region for Bank of America Merrill Lynch’s Global Commercial Banking division, Rita Sola Cook leads a team of banking professionals in eight Midwest states who service businesses with revenues of $50 million to $2 billion. Cook joined Bank of America’s predecessor LaSalle Bank in 1997 and has moved up through the ranks, having held various management positions in finance, product management and sales. She speaks openly about battling cancer and infertility while climbing the corporate ladder at the bank. Her personal experience motivates her work as chair of the bank’s Diversity & Inclusion Council, which is responsible for driving strategies that reinforce the bank’s commitment to fostering a diverse and inclusive environment both internally and externally. “Here at Bank of America, leadership, teamwork and an unwavering commitment to our clients are just a few things we stand for,” said Matt Elliott, Michigan Market President for Bank of America Merrill Lynch. “Rita Cook is a great example of these principles in action. She is a mentor, an advocate, a leader, a friend.” Cook is also active in military and veterans’ affairs, as well as a part of the bank’s Women’s Leadership Council.

JANETTE DAVIS

JANA DEAN

Chief Financial Officer and Vice President of Contract and Administration, Authority Health, Detroit Funds managing: $15 million Education: Master of Health Care Administration, University of Detroit Mercy

Chief Financial Officer, Michigan Public Health Institute, Okemos Funds managing: $100 million Education: Master of Business Administration, Michigan State University Certifications: Certified Public Accountant and Certified Internal Auditor

Janette Davis is known as a dynamic leader who looks for ways to make Authority Health programs work despite financial challenges. She is responsible for the organization’s overall financial management, including forecasting economic strategies. In 2015, when the federal government reduced reimbursement for the graduate medical education teaching health center, programs across the country closed. However, Davis supervised development of a State of Michigan program that leverages Medicaid match funding to support psychiatry funding. The initiative allowed Authority Health’s program to continue operation. In addition, Davis supervised the launch of Engen, an electronic enrollment system that allowed the organization to process more Medicaid applications, making it a profitable center. “Janette Davis has been an invaluable member of our senior management team since the inception of Authority Health,” said Chris Allen, CEO of Authority Health. “Her counsel and decision-making has enabled our organization to achieve its public mission without a source of dedicated funding from our public sponsors.” Davis also looks for opportunities to mentor and advance the careers of women in finance. She is a member of the Chief Financial Officer Network, Society for Human Resource Management, Financial Executive International, Managing Intellectual Property and Federal Government Contractor Network.

Jana Dean’s chief goal as a leader is to create a flexible environment that empowers the staff and provides work-life balance. Prior to her current role, she was finance and operations internal audit manager at Michigan State University. At Michigan Public Health Institute, Dean’s team is responsible for payroll, benefits, accounts receivable and payable, contracts, grants management, budgeting, taxes and more. “Jana possesses the dual ability to analyze and manage employee benefit costs while providing valuable programs. Along with the financial aspect of benefit decisions, she is concerned about any disruption to the employees of MPHI and works to maintain balance,” said Diane Dignan, vice president of Marsh & McLennan Agency. Dean, a member of the Institute of Internal Auditors and American Institute of Certified Public Accountants, recently began initiating a financial wellness program that helps address employee stress. In recent years, she created a strategic plan that includes moving from paper to electronic processing, centralizing purchasing functions and implementing a tool that saves time managing budgets and limits potential errors. Dean also negotiated a new indirect cost rate with the federal government that better matches operational costs to project costs.

Hat’s Off!

JANETTE DAVIS has taken

the ethic, “doing more with less,” to the extreme in her management of fiscal resources at Authority Health. Her skill in leveraging scarce public and philanthropic funds has enabled Authority Health to achieve remarkable progress in its mission. Her enduring discipline as CFO, together with optimism in the ability of the organization to overcome its obstacles, is a testament to her leadership as a “Notable Woman in Finance.”

Here’s to raising expectations. Notable Women in Finance Congratulations, Christine Moore, executive vice president and general auditor! Your integrity, commitment to excellence, involvement in the community and dedication inspire us. Thank you for your leadership.

RAISE YOUR EXPECTATIONS. MEMBER FDIC. EQUAL OPPORTUNITY LENDER.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

CAITLIN FALENSKI

BRIDGETT FEAGIN

KAREN GERSTENBERGER

Financial Advisor, Oppenheimer & Co. Inc., Birmingham Funds managing: $220 million Education: Bachelor of Business, Michigan State University Certifications: Certified Specialist in Retirement Planning

Chief Financial Officer, DMC Harper-Hutzel and Detroit Receiving Hospitals, Detroit Funds managing: $2.95 billion Education: Master of Business Administration, Information Systems Management, California Coast University

Senio Corp. Funds Educa Unive

Caitlin Falenski, a 2018 Five Star Wealth Manager winner, is a go-to person at Oppenheimer & Co. for her best practices and operational knowledge. Falenski is part of a two-person team that offers investment advice on portfolio allocations, estate planning strategies, college savings recommendations and extensive financial product knowledge for clients. Oppenheimer’s revenue grew 53 percent since the company formed the team in 2014. That success, in part, is due to Falenski’s networking efforts and educational workshops that helped create new client relationships. “With thoughtful attention to detail, she crafts elegantly tailored solutions for diverse client needs,” said Jonathan Uffelman, executive director of Investments and Birmingham branch manager at Oppenheimer & Co. Falenski is vice president of the local chapter of Business Networking International (BNI) and an advocate for women. She created The Financially Fit Female, which provides simple techniques that help women create sustainable saving-and-spending habits. Falenski also consults with high school and college students as well as young professionals to help them start planning their financial futures. “Not only do I trust her implicitly with my finances (and therefore my future), she is extremely communicative, thorough and professional. It is obvious how much she cares about her clients and their well-being,” said Melissa Tremblay, co-member of BNI.

Chief Financial Officer, The Platform LLC, Detroit Funds managing: $500 million Education: Bachelor of Business Administration in Accounting, Central Michigan University Certifications and licenses: Certified Public Accountant, Kyosa nim (certified instructor) in PKSA Karate

Considered her team’s biggest cheerleader, Bridgett Feagin has a “get it done, no matter what” attitude that builds loyalty and respect. Feagin, who is a member of the Healthcare Financial Management Association and the American College of Healthcare Executives, previously served as vice president of finance and planning for the DMC and CFO of the United Way for Southeastern Michigan. Over the past five years, she has led a hospital systemwide initiative that yielded $50 million in savings. She now is part of the restructuring team that is integrating the operating teams at Detroit Receiving, Harper University and Hutzel Women’s hospitals into one team. “I am so pleased to work with Bridgett as we continue to strive to integrate our executive team so we can continue to effectively deliver superior medical care to Southeastern Michigan,” said Scott Steiner, CEO of DMC. “Her impressive experience in driving successful results in finance will help us stay well positioned for the future.” Feagin also serves the community as a lead volunteer for Meals on Wheels and as a board member for the Metro-Detroit Basketball Association and as a member and audit chairperson for the Accounting Aid Society. “Bridgett lends her talents to help direct the mission of United Way’s group Women United, where she and others are committed to improving the quality of early childhood services throughout our region,” said Doug Ferrick, vice president for United Way.

Prior to joining real estate development group The Platform, Karen Gerstenberger managed more than $40 million in depository accounts at 17 banking institutions for The Hayman Co. She joined The Platform in 2016, where she directs all of the private company’s accounting, human resources, IT and risk management. “Her superior technical skills, leadership and ability to work across all disciplines in our real estate development company allowed us to grow The Platform as quickly as we did,” said Dietrich Knoer, president and CEO of The Platform. Gerstenberger assisted in the successful rollout and first closing of Platform Neighborhood Investment Fund 1, which received $7.5 million from developer Stephen Ross and $10 million from the Ford Foundation to bring affordable housing and market-rate apartments to Detroit communities. She’s also a powerhouse outside the office as the instructor at and owner of PKSA Karate in Rochester Hills. “In the past two years alone, we have seen her (PKSA Karate franchise) location increase its annual revenue and grow to become a healthy and sustained business. Not only on a financial level have we witnessed her success, but also on a humanity level; we have seen lives changed by the work she has done,” said John Prosch, general secretary of PKSA Karate.

“We have seen lives changed by the work (Karen) has done.” — JOHN PROSCH, ABOUT KAREN GERSTENBERGER

Congratulations Nicolette! Kudos to Chief Financial Officer / Treasurer Nicolette Bateson for earning the Crain’s Notable Women in Finance Award! Your boundless energy, unparalleled talent and hard work is an inspiration to everyone at GLWA. Your GLWA family is proud of you! One Water One Team

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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 // M A Y 7 , 2 0 1 8

GRETCHEN HOLLOWAY

MARILYN HORN

MARYBETH HOWE

MARY ANNE JONES

Senior Vice President, Chief Financial Officer, ITC Holdings Corp., Novi Funds managing: $9 billion in assets Education: Bachelor’s degree in Finance, Western Michigan University

President and Chief Financial Officer, Van Dyke Horn Public Relations, Detroit Funds managing: about $2 million Education: Associate’s degree, Wayne County Community College

Executive Vice President and Division Manager, Middle Market Banking Great Lakes Division, Wells Fargo Bank, Birmingham Education: Master of Business Administration, The Ohio State University

Berg Muirhead & Associates promoted Marilyn Horn to vice president in 2013. Then, she directed all of the firm’s finance and operations. In January 2016, Horn and Peter Van Dyke purchased Muirhead & Associates from the founders. Horn managed the purchase along with major infrastructure improvements, including moving the office to a new location and hardware, software and management system upgrades, without incurring bank or credit card debt. Since then, the agency’s revenues and staff have more than doubled. It also established the Berg Muirhead Scholarship for Public Relations Student Advancement at Wayne State University. “Marilyn has a tremendous facility to manage finances,” said Bob Berg, co-founder of Berg Muirhead & Associates and counsel to Van Dyke Horn. “She (also) played a key role for Berg Muirhead during the depths of the Great Recession in 2008, 2009 (and) 2010, keeping our finances in order and assuring we stayed in the black.” Horn has built her leadership philosophy on the idea that differing opinions make a stronger product, and life experiences are essential assets for any company to succeed. The scholarship is an extension of Horn’s commitment to mentoring. She serves as a mentor to students at Randolph Technical High School during Operation Hope’s “Banking on Our Future” program, an interactive financial literacy program for kids and adults.

Under Marybeth Howe’s leadership, Wells Fargo’s local Regional Commercial Banking Division achieved double-digit, year-over-year growth for the past seven years. Howe manages a team of 100 banking professionals who provide loan, treasury management, and deposit products to middle-market companies in Michigan and Ohio with revenues greater than $20 million. Honored in 2016 as one of Michigan’s 100 Most Influential Women by Crain’s Detroit Business, she co-founded the bank’s Women in Leadership Council, a group of 100 senior commercial banking executives. “Through her work as a mentor and with Wells Fargo’s Women in Leadership Council, she has been a catalyst for diversity, inclusion and the advancement of women at Wells Fargo, throughout the Great Lakes and beyond,” explained Monica Cole, North Region head of Wells Fargo Middle Market Banking. Howe also is a member of the Commercial Banking Diversity Advisory Board, co-chair of the Commercial Banking Women’s Leadership Council and a member of the board of directors of the Citizens Research Council, the Capuchin Soup Kitchen Advisory Committee and the Mike Ilitch School of Business Board of Visitors. “As a member of the Citizens Research Council of Michigan board of directors, … she has provided keen insights that have helped us navigate difficult economic times,” said Council President Eric Lupher.

Chief Financial Officer and Senior Vice President of Operations, Priority Health, Grand Rapids Funds managing: $4 billion Education: Master’s degree in Accounting and Information Systems, Ferris State University Certifications and licenses: Certified Public Accountant, Certified Management Accountant

Gretchen Holloway’s unique combination of technical finance skills, fierce resolve and empathetic leadership style adds to her credibility, engages colleagues at all levels and helps produce results for ITC Holdings. As a result, the company promoted her in 2014, 2015, 2016 and in 2017 to her current role. “Gretchen exemplifies financial stewardship, business acumen and leadership and is highly regarded by her team and organization,” said Linda Apsey, president and CEO of ITC Holdings. In recent years, she was a key leader of the team that shepherded Fortis Inc.’s $11 billion acquisition of ITC. She also led the treasury team’s efforts to obtain a more than $1.8 billion issuance of ITC Holdings’ debt offering. Holloway also offers her services outside the office as a member of the finance executive audit committee for Edison Electric Institute, which represents all U.S. investor-owned electric companies, and as a member of the Finance & Audit Committee for the Children’s Hospital of Michigan Foundation (CHMF). “She has contributed to our Finance committee through her innovative and analytical thinking and challenging the status quo. She is actively involved and contributes valuable strategic insight to further the Foundation’s objectives,” said Andy Zaleski, trustee and chair of the Finance & Audit Committee at CHMF.

THANK YOU FOR YOUR LEADERSHIP

Karen Leppanen Vice President, Finance and Administration

The Community Foundation for Southeast Michigan salutes the Crain’s 2018 Notable Women in Finance honorees. Congratulations to Karen Leppanen on her recognition for her leadership in the community and at the Community Foundation.

An energetic leader and master of financial planning and reporting, Mary Anne Jones is responsible for all of Priority Health’s finances, strategic planning, investments, medical economics, accounting, and auditor relationships. She has helped the health system realize a $59.6 million year-over-year increase in underwriting gain and reverse losses on individual policies. Also in 2017, Jones, who is a member of multiple industry organizations, helped Priority’s Michigan Medicaid program earn an A in financial strength from A.M. Best. An advocate of community service, Jones serves on a number of boards. As a member of the College of Business Leadership Advisor Board at Ferris State, she serves as a mentor to young women seeking careers in finance. “Mary Anne Jones…leads a team that includes a number of women in leadership roles, and she is always open to meeting with other women from across the organization,” said Amy Miller, director of marketing and corporate communications for Priority Health. She also provides leadership, financial and business counsel as a board member of Samaritas and Spectrum Health United Hospital and as governor-appointed chairperson of the Local Community Stabilization Authority.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

HEIDI KASSAB

SUSAN KOSS

KIM STINE KUBINSKI

President and Chief Executive Officer, Cornerstone Community Financial Credit Union, Auburn Hills Funds managing: $272 million Education: Bachelors in Accounting Certifications and licenses: Certified Public Accountant

Partner and Managing Director, O’Keefe LLC, Bloomfield Hills Education: Bachelor’s in Accounting Certifications and licenses: Certified Public Accountant, Certified Valuation Analyst, Certified in Financial Forensics

Vice President, Michigan Financial Companies, Southfield Funds managing: $17.6 million Education: Bachelor of Science, Business Administration and Management, Oakland University

Vice P Found Funds Educa Michi

“Her strategic thinking is astounding. She is always 10 steps ahead of the situation.”

Under Heidi Kassab’s leadership, assets at Cornerstone Community Financial Credit Union grew 40 percent, to $270 million from $192 million in five years. At the same time, membership increased 36 percent to 27,500 from $20,000. It also earned Crain’s Cool Places to Work honors in 2017 and Raddon Financial Group’s Crystal Award three times in the past five years. Known for leading without micromanaging, Kassab handled the credit union’s merger with Royal Oakbased Northwood Credit Union, adding about $80 million in assets and 2,500 members. Last year, she built a free-standing branch in Perrysburg, Ohio, after a tornado destroyed the original. “Her strategic thinking is astounding. She is always 10 steps ahead of the situation,” said Tonya Dupree, vice president of Retail and Delivery at Cornerstone. Kassab also makes community service a priority. “I attended an event where Heidi spoke to a group of young inner-city middle school girls at Oakland University, and I was amazed at her energy and passion to educate these young girls in the importance of finance, higher education and how to be successful in their own careers,” added Dupree. The credit union also supports the community with college scholarships, charitable donations and more.

— TONYA DUPREE, ABOUT HEIDI KASSAB

“My partner, Sue Koss, has an enviable quality of staying calm and thoughtful in the most distressing conditions,” said Patrick O’Keefe, founder and CEO, O’Keefe. “This calm influence often gives co-workers and clients the confidence that a great solution is just around the corner. If optimism is a force multiplier, a Jedi Knight has nothing on Sue.” Susan Koss’s diverse expertise reveals her ability to prepare complex financial analyses used in business valuations and turnarounds, bank-workout assignments and in litigation. Being lead of O’Keefe’s Litigation Support Group, Koss was integral to the company winning the Best Litigation Consulting Services from Michigan Lawyers Weekly in 2017. She has served as a financial expert witness regarding breach of contract, lost profits, economic damages and fraudulent conveyance. Koss also helps restructure businesses and performs business valuations used in estate tax resolutions, shareholder disputes, divorce, mergers and acquisitions. In recent years, she played a major role in the successful accelerated sale of an assistance logistics company and assisted an owner of a portfolio of restaurants and office buildings restructure their finances, saving them 300 basis points on interest. Koss is a member of several industry organizations, including advisory board member for Oakland University’s Accounting and Finance Program.

Kim Stine Kubinski is second-in-command at Michigan Financial Companies. She supervised the opening of its Texas branch, called Platinum Wealth Solutions of Texas, which grew from two advisors and $193,000 in 2010 revenue to 12 advisors and $1.8 million in revenue in 2017. She also supervised the company’s merger with Great Lakes Financial Partners, now called Platinum Wealth Solutions LLC. “Kim has been in financial services for over 27 years, 13 of those with Michigan Financial Companies, Inc. During the last 13 years, our firm and our financial advisers have enjoyed consistent above average growth,” said Nick Valenti, president and CEO of Michigan Financial. Recently, Stine Kubinski, who places a significant focus on recruiting more women into the financial services industry, began an initiative to help stay-athome mothers return to the workforce through a career in financial advising, which would allow them to have flexible schedules. Stine Kubinski serves on Oakland University’s Certified Financial Planner Advisory Board and the board of directors for Inforum and mentoring nonprofit Winning Futures, where she encourages students in disadvantaged areas to attend college and counsels them on future careers.

One of our

Best & Brightest Assets Hitachi Business Finance is proud to celebrate and congratulate Candi Pavliscak on being named one of the Notable Women in Finance by Crain’s Detroit Business. You continually exceed expectations and your tenacity and focus is an inspiration to all who work with you.

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Congratulations to Tosha Tabron on being named a Crain’s Notable Woman in Finance. Thank you for your leadership of the firm’s commitment to the City of Detroit and tireless efforts on behalf of all its residents. Wishing you continued success.

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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 // M A Y 7 , 2 0 1 8

KAREN LEPPANEN

COURTNEY LOWMAN

ANGELA MADER

LAURIE MARSHALL

Vice President, Finance and Administration, Community Foundation for Southeast Michigan, Detroit Funds managing: $900 million Education: Master of Business Administration, Eastern Michigan University

Executive Director, Chief Financial Officer Business Support, Ally Financial Inc., Detroit Funds managing: $122 million Education: Master of Business Administration, New York Institute of Technology and Michigan State University Certifications and licenses: Certified Investments and Derivatives Auditor

Chief Financial Officer, Schostak Brothers & Co. Inc., Livonia Funds managing: $900 million Education: Master of Business Administration in Finance, University of Missouri–Kansas City; Master of Business Administration in Real Estate Marketing from Arizona State University

Senior Financial Advisor and Principal, LJPR Financial Advisors LLC, Troy Funds managing: $167 million Education: Master of Business Administration, Dartmouth College Certifications and licenses: Certified Financial Planner

Angela Mader’s market knowledge and experience permit her to underwrite opportunities using an efficient mix of capital, maximizing returns for Schostak Brothers & Co. Inc. and its clients. “She manages numerous financial relationships and is effective in providing solutions to complex issues allowing capital providers the opportunity to grow with their organization,” said Gregg Speaks, managing director of Commercial Real Estate at Canadian Imperial Bank of Commerce. After the last recession, getting financing for vacant properties became difficult. However, Mader has been instrumental in helping Schostak line up bank financing for old, vacant industrial warehouses. “Angela Mader is the hardest working CFO I know,” said Cynthia Van Neck Porter, vice president and alternate group manager of Commercial Real Estate at Comerica Bank. “She has an amazing ability to move from big-picture concepts to nitty-gritty details very quickly.” A member of the International Council of Shopping Centers, she handled the refinance of a $125 million portfolio of Walmart shadow-anchored shopping centers in 25 states, helped arrange HUD financing for the Lofts of Merchant Row and arranged credit tenant lease financing for Masco Corp.’s global headquarters in Livonia.

A member and past president of the Bloomfield Hills Optimist Club, Laurie Marshall has infectious enthusiasm. She uses her passion not just to serve as a mentor to other women at LJPR Financial Advisor but to encourage others as well. “Laurie Marshall brings a passionate heart, a deep concern for our community’s children, and a generous business sense to the Bloomfield Hills Optimist Club,” said Adela Piper, co-founder of Siren PR and past president at Bloomfield Hills Optimist Club. Marshall built a women’s networking group to which she invites young women professionals from a variety of vocations and, with the help of LJPR’s attorney, started a financial planning for young professionals program the company delivers to new residents at local medical schools. As principal, she created LJPR Pride, a business outreach initiative to help parents and families enhance their lives. As president of Mount Holyoke College Club of Detroit, Marshall helps provide career networking opportunities for alumni and other students. She also helped the company create a quantbased, global dividend strategy for clients interested in tax efficiency. “Laurie Marshall epitomizes the concept of a fiduciary advisor. She is always curious and diligent, and acts in the best interest of all she meets,” added LJPR CEO Leon LaBrecque.

“The heart and soul of the Community Foundation,” is how colleagues describe Karen Leppanen. She’s responsible for financial reporting, accounting, investments human resources and IT and works with the Foundation’s Investment and Audit committees, consultants and investment managers. Since joining in 1986, Leppanen has helped the nonprofit grow from $2 million to $900 million. “Karen is as close to perfect in her job as is possible. She will make it happen no matter what she is asked to do,” said Community Foundation President Mariam Noland. Under Leppanen’s direction, the nonprofit has become one of the top 30 community foundations in asset value in the nation. In 2017, it made more than 3,900 grants and received $86 million in new gifts. Leppanen championed the hiring of student interns from Detroit schools and looks for opportunities to recruit women and minorities. “Karen is an outstanding professional and individual who has my highest recommendation. She is the last person to seek recognition, but her commitment to her job and community make her a model of what we need in the financial industry,” said Ken Whipple, retired CEO of Consumers Energy and chair of the investment committee at Community Foundation for Southeast Michigan.

Courtney Lowman is a “true culture champion” who not only leads Ally Financial’s Finance and Treasure teams’ operations, governance and routines but also ensures company culture has the right focus. “Her focus on employee development, satisfaction and advancement make her one of the most highly respected leaders in the company,” said Christopher Halmy, former CFO, Ally Financial. Recognized for her strong tactical and strategic abilities, she is responsible for more than 450 associates. She helped oversee the CFO Group’s controllable expense budget, achieving $2 million in savings in 2017. She also has led oversight, management and implementation of regulatory requirements for auto securitization and coordinated and implemented a platform to implement Dodd-Frank, which included cost and vendor negotiations. In addition, Lowman is executive sponsor for the CFO Groups Engagement Team, supporting local charities and ad hoc initiatives. “Courtney’s also done an amazing job in leading Ally finance employees to volunteer numerous hours and raise hundreds of thousands of dollars for our community nonprofits,” added Halmy.

ENERGIZING MICHIGAN’S

Future

Congratulations to Gretchen Holloway, SVP and CFO, ITC Holdings Corp., upon being recognized by Crain’s Detroit Business as one of Michigan’s Notable Women in Finance for 2018. Gretchen’s work is instrumental in helping ITC continue its efforts to energize Michigan’s future by improving electric reliability, increasing electric transmission capacity, and keeping efficient, reliable energy flowing to communities, homes and businesses across the state.

ITCHoldingsCorp

@ITCGrid

ITCHoldings

www.itc-holdings.com

C R A I N â&#x20AC;&#x2122; S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

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PAMELA MAY

CHRISTINE MOORE

CANDI PAVLISCAK

Partner, UHY LLP Funds managing: $2.5 million Education: Master of Science in Taxation, Walsh College Certifications and licenses: Certified Public Accountant

Executive Vice President and General Auditor, Comerica Inc., Detroit Funds managing: $71.6 billion in assets and audit department budget Education: Master of Business Administration, University of Detroit Mercy Certifications and licenses: Certified Public Accountant, Certified Information Systems Auditor, Certified Anti-Money Laundering Specialist and Certified Fiduciary and Investment Risk Specialist

Senior Vice President and Chief Risk Officer, Hitachi Business Finance, Rochester Funds managing: $300 million Education: Bachelor of Business Administration, Oakland University

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Promoted in 2017 from principal, Pamela May is UHY LLPâ&#x20AC;&#x2122;s first Michigan female partner. â&#x20AC;&#x153;Pam is always my go-to person when I have questions regarding sales or transfer of a partnership to a third party,â&#x20AC;? said UHY Partner Dennis Laporte. She has assisted in mergers and acquisitions for the firmâ&#x20AC;&#x2122;s largest clients and is conversant in tax planning and compliance for M&A transactions between $3 million and $825 million. She also is a member of several industry organizations as well as a member of UHYâ&#x20AC;&#x2122;s National Personal, Estate and Fiduciary Planning Group and its Tax Department, where she advises clients on ways to maximize profits and limit taxes and represents them before the IRS and state. In addition, May launched Women Investing in Success and Excellence (WISE), an organizational initiative to identify, retain and grow future leaders. Dedicated to serving the community, May sits on the board of directors for the Macomb County Chamber of Commerce, where she was key to implementing procedures that ensure the integrity of the Chamberâ&#x20AC;&#x2122;s financial operations. â&#x20AC;&#x153;Pamâ&#x20AC;&#x2122;s professionalism, leadership and competence are unparalleled as a board member and part of the chamberâ&#x20AC;&#x2122;s executive team. Furthermore, she has been an immense help to the chamberâ&#x20AC;&#x2122;s finance director to implement new accounting procedures to the Chamber and sub-organizations,â&#x20AC;? said Grace Shore, CEO of Macomb County Chamber of Commerce.

Christine Moore leads a team of 85 auditors and examiners responsible for auditing the financial statements of Comerica Inc., one of the 25 largest financial institutions in the nation. A natural problem solver, she streamlined the organizationâ&#x20AC;&#x2122;s process for certifying the accuracy of financial information and oversaw the implementation of a joint initiative to combat corporate fraud. She also launched and led an initiative that helped increase Comericaâ&#x20AC;&#x2122;s fee income and lower its expenses. Moore, who received a 2018 Career Mastered Womenâ&#x20AC;&#x2122;s History Leadership Award, enjoys developing and supporting people around her as executive sponsor of the Comerica African American Network and a newly inducted member of the Executive Leadership Council. She also serves on numerous industry organizations and on the board of Alternatives for Girls. â&#x20AC;&#x153;Ms. Moore has played a positive and important role in a somewhat challenging process over the past two years as the organization has set long-term goals and created a strategic plan,â&#x20AC;? said Amanda Good, CEO at Alternatives for Girls. â&#x20AC;&#x153;She has listening skills and ability to lead a group through conflict to a positive resolution in a way that builds, rather than erodes.â&#x20AC;?

â&#x20AC;&#x153;(Christine) has listening skills and ability to lead a group through conflict to a positive resolution in a way that builds, rather than erodes.â&#x20AC;? â&#x20AC;&#x201D; AMANDA GOOD, ABOUT CHRISTINE MOORE

Named one of the Top 50 women in commercial finance by the Commercial Finance Association, Candi Pavliscak is an advocate for equality. Her motto is, â&#x20AC;&#x153;Your thoughts are just as valid as anyone elseâ&#x20AC;&#x2122;s, regardless of age or gender.â&#x20AC;? She puts that to work with her staff of all women by encouraging her team to seek further education, training, promotions and new responsibilities and by mentoring younger professionals. While sheâ&#x20AC;&#x2122;s directly responsible for a more than $100 million portfolio, Pavliscakâ&#x20AC;&#x2122;s service team is responsible for $200 million, which has tripled in size in the past 12 months. Her responsibilities have increased because Pavliscak is known for accurately assessing and mitigating risks and delivering results on every project assigned. She is leading division-wide software implementations, audit compliance standards and developing portfolio review procedures for two new products. â&#x20AC;&#x153;I am continuously impressed by her professionalism, tenacity and character as she approaches her responsibilities. Iâ&#x20AC;&#x2122;m lucky to work with her on our team, and Iâ&#x20AC;&#x2122;m even luckier to have had the chance to get to know her,â&#x20AC;? said James Giaimo, chief credit officer of Commercial Credit at Hitachi Capital America.

Âł1HYHU &RQIXVH (Ě&#x2020;RUW ZLWK $FKLHYHPHQWÂŤÂ´ -RKQ :RRGHQ Oâ&#x20AC;&#x2122;Keefe would like to congratulate all recipients of the Crainâ&#x20AC;&#x2122;s Detroit Businessâ&#x20AC;&#x2122; 2018 Notable Women in Finance Award. Particularly, we are proud of

Susan Koss, Partner and Managing Director, for her achievement of this prestigious recognition. Susan Koss is a leader in the litigation support and restructuring industry and #1 in our book for her financial expertise. Congratulations Sue! When hands-on guidance and exceptional performance are a must, take action by turning to the experience of Oâ&#x20AC;&#x2122;Keefe. We craft solutions that produce impressive bottom-line results... even in the most complex situations. We invite you to learn more at www.okeefellc.com.

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STACEY SCHABEL

MARGARET SCHESKE

URSULA SCROGGS

Vice President and Chief Audit Executive, North American Audit Director, Jackson National Life Insurance Co., Prudential Plc North American Group, Lansing Education: Bachelor’s in Accounting and Management Information Systems, Central Michigan University Certifications and licenses: Certified Public Accountant, FINRA Series 6 license

Vice President, Chief Accounting Officer, AAA – The Auto Club Group, Dearborn Funds managing: $3.1 billion Education: Bachelor of Business Administration, University of Michigan Certifications and licenses: Certified Public Accountant, Chartered Property Casualty Underwriter

President, Managing Director, Derderian, Kann, Seyferth & Salucci, PC, Troy Education: Bachelor of Business Administration, Wayne State University Certifications and licenses: Certified Public Accountant, Chartered Global Management Accountant

Stacey Schabel oversees Prudential Plc North American Group’s internal audit team, which evaluates key activities and operations, including Jackson National Life Insurance Co. Schabel, known for having a positive approach in all that she does and for bringing a fresh perspective to the audit realm, advocates for enhanced team structures with greater access to training, resources and opportunities to participate in industry-wide focus groups. Each year, she hosts a Strategy Day with her department to discuss internal audit branding, personal development, communications and relationship management. In 2017, Schabel joined the Global Financial Services Guidance Committee for the Institute of Internal Auditors (IIA). “She has led a project to develop an internal audit practice guide on model risk management and has already volunteered to lead one more project on culture in the financial services industry. She is currently a participant on another practice guide regarding third-party risk management,” said Jeannette York, director of IIA Financial Services Standards & Guidance. Not only a subject-matter expert, Schabel is also an advocate for volunteerism. She participates in outreach days for Many Hands, Adopt A Family and Lansing Roots—a program by the Greater Lansing Food Bank.

Margaret (Peggy) Scheske develops, implements and coordinates policies and processes regarding AAA – The Auto Club Group’s (ACG) accounting, financial reporting and tax matters. ACG includes Michigan, Nebraska, North Dakota, Wisconsin, Minnesota, Iowa, Illinois and Indiana. In recent years, she was integral to ACG’s acquisition of Meemic and Fremont insurance companies and of AAA Auto Club South, which was comprised of three states, Puerto Rico and the U.S. Virgin Islands. She also was responsible for the integration of each organization’s financial operations. Moreover, she adopted the company’s robotic process automation, which reduced costs and inefficiencies and increased accuracy. “Peggy not only has strong technical skills … but she also adds value to our business by leading the use of new technology tools and participating in special projects such as acquisitions,” said Sean Maloney, executive vice president and chief financial officer for Treasurer Finance & Investments at ACG. Scheske is chair of the finance committee and a member of the audit committee of the Michigan Automobile Insurance Placement Facility and treasurer for the Ann Arbor Hockettes Junior Team, a synchronized ice skating team.

“(Ursula) is so deeply rooted in business that there is a rare instance that she hasn’t already experienced.” — JEAN STENGER, ABOUT URSULA SCROGGS

Ursula Scroggs advises family-owned businesses and other clients in operational and financial planning, projections and budgets, mergers and acquisitions. She also strives to have a positive impact on every life she touches. “I’ve watched her in admiration in meetings with peers, staff, clients and community leaders as she advises on business matters related to tax, accounting and financial and business consulting,” said Jean Stenger, senior accounting manager at Derderian, Kann, Seyferth & Salucci (DKSS). Scroggs conceived of a plan for DKSS to provide eight hours of paid time off for each of its 40 team members to perform community services and established the firm-wide use of webinars to enhance leadership development. She is a founding member and treasurer of Impact 100 Macomb County, a women’s organization that awards high-impact grants to nonprofits. In addition, Scroggs serves on the Women’s Initiatives Task Force at the Michigan Association of CPAs and the AGN International’s Women’s Leadership Forum. “She is so deeply rooted in business that there is a rare instance that she hasn’t already experienced,” added Stenger. “She freely shares her knowledge of tax, accounting, and financial consulting, always in the best interest of others.”

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

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TOSHA TABRON

MARY TEMPLETON

JENNIFER VARNEY

Vice President and Relationship Manager for Global Philanthropy, JPMorgan Chase & Co., Detroit Education: Master’s in Urban Planning, Wayne State University

President and CEO, Michigan Saves, Lansing Funds managing: About $12 million Education: Master of Business Administration, Eastern Michigan University

Director of Finance, City of Sterling Heights Funds managing: $500 million Education: Master of Business Administration, Wayne State University Certifications and licenses: Certified Public Treasurer

Chief Inc., D Funds Educa Certi

When JPMorgan Chase & Co. announced its $100 million commitment to Detroit in 2014, it put Tosha Tabron in charge of the task. In her role, Tabron leads the bank’s philanthropy mission across its priority areas: affordable housing, financial capability, economic growth and workforce readiness. “She is the perfect person for the bank’s role in Detroit,” said John Carter, the managing director and market manager for Chase in Michigan, in a 2016 interview about Tabron when she was honored as a Crain’s 40 Under 40. “She has boundless energy and passion for the city. Within the bank, she is a trusted partner to many internal groups as she leads the Detroit activities.” Before joining Chase in 2013, Tabron was vice president of Corporate Social Responsibility for Bank of America and its charitable foundation, spending 14 years at that bank and its predecessor organizations. Tabron serves on the board of directors for the Detroit Economic Growth Corp., Great Lakes Women’s Business Council, Community Development Advocates of Detroit, Bank on Detroit and is also a member of the Detroit Regional Workforce Fund steering committee.

Michigan Saves, which provides financing to stimulate and support investment in energy improvements, is experiencing significant growth under Mary Templeton’s leadership. After becoming president and CEO, Templeton held numerous discussions to learn the market and subsequently worked with lenders to lower interest rates to 4.25 percent from 7 percent. Templeton, who oversees the organization’s $1 million-$2 million budget and $10 million trust fund, directed the reevaluation of the trust fund’s performance and implemented changes to help Michigan Saves generate more than $200 million in private capital for energy improvements. She also helped grow the portfolio of residential and commercial loans to $120.4 million in 2017 from $28.9 million in 2013. “Leading an incredible team, Mary has overseen exponential loan portfolio growth, giving thousands of Michigan residents the tools that they need to make smart energy choices,” said Irene Dimitry, vice president of DTE Energy. Templeton earned the Great Lakes Renewable Energy Association’s Women in Energy and EcoWorks’ Sustainable Community Champion awards in 2016. She also helped found Advancing Women in Energy and serves on the board of directors for Habitat for Humanity of Michigan and the Michigan Women’s Commission, which provides support for veterans and entrepreneurs and fights human trafficking.

Crains Notable Women in Finance

Congratulations Renee Burkhart Director of Accounting

PTMCORPORATION.COM

“(Jennifer) is professional, diligent, financially savvy and she routinely empowers her staff by providing clarity of vision and trusting them to carry out that vision.” — NICK MAKIE, ABOUT JENNFER VARNEY

An innovator continually looking to provide city services more efficiently, Jennifer Varney is involved in every imaginable project that costs the City of Sterling Heights money. She provides oversight to $45 million in recreation amenity improvements, nearly $100 million in road improvements and $40 million in other facility improvements. In addition, she is implementing the City’s Emergency Financial Plan, which includes eliminating fixed pensions and retiree health care, privatizing services and regionalizing police and fire dispatching with Macomb County. Because health care costs rose to more than $100 million from $6 million in 2004, Varney, who manages 31 employees, is helping develop the financial model the city needs to build a wellness center that could lower health care costs and enhance access to services for employees. “She is professional, diligent, financially savvy and she routinely empowers her staff by providing clarity of vision and trusting them to carry out that vision,” said City Controller Nick Makie. Varney serves on the Macomb County Treasurer Association’s Executive Board and is a member of the National Government and Finance Association, among other organizations.

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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 // M A Y 7 , 2 0 1 8

S13

TERRI WEEMS

KIM WEISHAAR

Chief Financial Officer, Detroit Employment Solutions Corp., Inc., Detroit Funds managing: $60 million Education: Master of Science, Accounting, Ohio University Certifications and licenses: Certified Public Accountant

Managing Partner, Southwest Michigan First, Kalamazoo Funds managing: More than $6 million Education: Master of Accountancy, Miami University (Ohio) Certifications and licenses: Certified Public Accountant

Detroit Employment Solutions Corporation (DESC), which handles the finances for the City of Detroit’s job seeker service provision, created the CFO position in fall 2017. Terri Weems, who was senior manager at PricewaterhouseCoopers LLP, already is making an impact. “Terri exemplifies the distinction between leadership and management. Terri’s charisma, caring demeanor and her attitude of constant, sustainable improvement distinguish her from others. She applies these qualities to our business processes — and urges, teaches and leads us to do so with ourselves as human beings,” said DESC Business Systems Analyst Richard LaBelle. As part of her “caring” approach, Weems offers her staff lunch sessions on personal finance budgeting and started a New Year’s Resolution Rewards contest. Weems also initiated a redesign of the organization’s footprint in Detroit, examinations of employee and Human Resource software and processes and streamlining of invoicing, billing and payment processes. A member of the American Institute of CPAs and the National Association of Black Accountants, Weems also provides mentoring to Detroit Public School students and serves as vice president of the Board of Education for Farmington Public Schools. “Terri’s keen mind for numbers and oversight have been a great benefit for the Board of Education,” said Farmington Public Schools Superintendent George Heitsch.

Kim Weishaar’s enthusiasm and work ethic so exceeded expectations that Southwest Michigan First promoted her from partner to managing partner within two months of her hire. “Kim has a rich experience and background in public accounting with Ernst & Young and brought that experience to serve as the chief financial officer of Southwest Michigan First,” said Thomas Webb, chair of the audit and financial committee of Southwest Michigan First and chairman of the Board, EnerBank USA. “Her skill set has allowed her to raise the quality of financial reporting and, importantly, provide better insights and tools for the management team to substantially improve performance on the profit and not-for-profit sides of the business.” She led the financial part of the Board of Director’s Anchor Strategy, which nearly quadrupled revenue at the economic development agency. She also led the financial plan that included tripling of staff, introducing revenue-generating leadership programs and a move to a new facility. In addition, Weishaar, who is a member of the American Institute of Certified Public Accountants, was selected to direct regional implementation for Southwest Michigan First’s new assurance software.

“A leader is someone who demonstrates what is possible.” —MARK YARNELL

Sharon Zhou, Chief Financial Officer

Congratulations Sharon on being named a 2018 Woman in Finance!

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Congratulations Jennifer Bacarella, named one of Crain’s Notable Women in Finance in Michigan for 2018! Jenny is an Executive Manager for the group of affiliated firms consisting of Sigma Financial Corporation, Parkland Securities, LLC, and Sigma Planning Corporation. As a member of the firms’ Executive Committee, Jenny provides leadership and vision in their overall management and operations. Over the er high touch approach has created firms with some of the lowest turnover ratios in the industry. years, her high-touch

Congratulations, Jenny, from all of us at the Sigma/ Parkland back office. We are so proud! 300 Parkland Plaza • Ann Arbor, MI 48103 • 888-744-6264

S14

! Rq̵ ˣˡˢ˩ NOTABLE WOMEN IN FINANCE Congratulations to Marilyn Horn for being recognized as one of Crain’s Detroit Business’ 2018 Notable Women in Finance!

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

LONI WINKLER

COLLEEN WISINSKI

Principal, UHY LLP, Farmington Hills Funds managing: $1.1 million Education: Master of Science in Accounting Information Systems, Eastern Michigan University Certifications and licenses: Certified Public Accountant

Controller, 365 Retail Markets, Troy Funds managing: $40 million Education: Master of Science in Management, Walsh College

Chief Funds Educa Certi Certifi

UHY promoted Loni Winkler, described as dependable and organized, from senior manager to principal in 2017. “She is directly involved in staff development and retention and also manages a large book of business and works with many different organizations,” said UHY Partner and CEO Tom Callan. “Loni employs a can-do attitude and is a true example to staff on being successful while managing a more flexible work-from-home schedule.” In 2015, Winkler helped coordinate the due diligence and tax reporting and implications for the $39 million sale of one of her client’s businesses. She leads by example. As a leader in the Michigan chapter of UHY’s Women Investing in Success and Excellence program, Winkler helps identify, retain and grow future leaders. She also serves as a mentor in the company mentorship program. Moreover, Winkler helped define the firm’s flexible work scheduling after her children were born by balancing her time at home and in the office without letting her work diminish. “It is a pleasure to know Loni as a co-chair of the Michigan Women’s Tax Association (MWTA) Membership Committee, as well as a board member. She offers insight, depth and knowledge as she willingly assists with any project,” said Susan Schmidt, MWTA board member.

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Motivated and detailed, Colleen Wisinski is responsible for finance and accounting for 365 Retail Markets, which provides micro-market technology for vending, food service and hospitality industries. Wisinski has a track record of identifying cost-savings opportunities and reaching ambitious business goals. In 2015, she directed the company’s acquisition of ReadyTouch, which provides self-service, point-of-sale software. She also led the company’s capitalization with McCarthy Capital in 2016 and capital funding from Bank of America in 2018. Over the years, she has directed 365’s implementation of a payroll, human resources management system (HRIS), benefits administration and 401k technology integrated solution. “Colleen is a results-oriented, proven business executive and has definitely taken her company to the next level from a human capital management perspective,” said David Sokol, owner of Wilshire Benefits Group. The 365 staff also appreciate Wisinski for her ability to counsel the staff on important decisions, financial or otherwise. “She leads her team with a desire to not only play to their strengths but to push them outside of their own comfort zones to develop their confidence, increase their value and foster collaborative teamwork,” said 365 Human Resources Director Michelle Zackay. “She is a great peer who has taught me a lot about the company, mentored me and provided sound counsel when we’ve had to partner on projects or business issues.”

CONGRATULATIONS! UHY is proud to recognize three incredible individuals for being named to Crain’s Most Notable Women in Finance!

MARLENE BEACH

DETROIT 313 964 1040

PAMELA MAY

FARMINGTON HILLS 248 355 1040

www.uhy-us.com

An independent member of UHY International

LONI WINKLER

STERLING HEIGHTS 586 254 1040

ANN ARBOR 734 213 1040

W.I.S.E. (Women Invested in Success and Excellence) is a community of women focused on leadership, the advancement of women, and enhancing career opportunities for all.

The next level of service

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SHARON ZHOU

CHRISTINE ZIMMERMAN

DONNA ZUK

Chief Financial Officer, TPS Logistics Inc., Troy Funds managing: $1 billion Education: Master of Accounting, University of Michigan Certifications and licenses: Business Tax Law certificate, Certified Public Accountant

Vice President, Finance and Controlling; Regional Head of Finance and Accounting, Bosch North America, Farmington Hills Funds managing: $250 million budget, reporting $13.7 billion in sales Education: Bachelor of Arts, Michigan State University Certifications and licenses: Certified Public Accountant

Vice President, Financial Operations, Beaumont Health Funds managing: $4.5 billion Education: Bachelor of Business Administration, Accounting and Accounting Information Systems, Eastern Michigan University Certifications and licenses: Six Sigma Green Belt certified Donna Zuk is a skilled motivator who conveys a sense of calm even on deadline. She guided her team as they played a key role — gathering data, evaluating systems, and implementing changes — in the creation of Beaumont Health, which included the merger of Beaumont Health System, Oakwood Healthcare Inc. and Botsford Hospital. She also oversaw the implementation of Beaumont’s People Soft Human Capital Management and Financial Systems software project. In addition, she renegotiated a payroll system contract for an annual $800,000 savings, restructured the accounting and payroll processes for efficiency, implemented a new travel program that limits fraud and misuse and negotiated accounting and financial contracts for a $1 million savings. Zuk’s team also cut the annual audit process by 30 percent. “Her leadership skills and financial acumen were huge contributing factors to the financial aspects of the successful merger of three organizations into Beaumont Health,” said John Kerndl, Beaumont executive vice president and CFO. “Donna’s in-depth knowledge and ability to lead a diverse employee population continues to be key as financial operations have been combined.” Zuk, a member of the Beaumont Health Women’s Leadership Initiative, also belongs to several industry groups, including the Hospital Financial Management Association and Health Care Executive Network.

When Sharon Zhou joined TPS Logistics out of college seven years ago, she had difficulty communicating in English. Four years later, she not only learned the language but her analytical prowess and ability to deliver results helped her rise from human resources to TPS CFO. With a team of 80 employees with operations in three countries, Zhou manages the company’s financials, including forecasting, budgeting and cash flow. Over the past five years, she has saved the company $50,000 through taxation and restructured TPS’ tax exposure in Mexico, boosting growth and profitability. She also resolved 2016 tax refund issues and recovered a 2-million-peso VAT refund from the government. In addition, she helped the company shift from 100 percent manual processing to 70 percent digital processing, allowing clients to receive more accurate and in-depth reports of their freight. “She is the pinnacle of what a remarkable CFO represents,” said TPS CEO Brandon Stallard. “I saw the clear raw talent of Sharon early on in her career, and while it was a gamble at the time, making her CFO of TPS Logistics was one of the best decisions I could have ever made.” Zhou is active in the community. As a member of the Chinese Business Association, she hosts free tax seminars to help young Chinese entrepreneurs excel. She also volunteers with Focus:HOPE and consults with HaloAI, a Chinese startup company working on advanced human-machine interface technologies.

In her dual role at Bosch North America, Christine Zimmerman oversees 300 associates in three countries. Always willing to take on new challenges, she is directing Bosch’s global restructuring of finance and accounting division. The project includes moving all accounting functions at 60 locations in the U.S., Canada and Mexico into a new corporate finance and accounting organization. She also led the payroll restructuring initiative that created automation, migrated processes and developed a center of expertise for U.S. payroll. Known for collaboration, Zimmerman’s accounting restructuring project earned Bosch’s 2017 BeOne Award, given to associates who encourage working together as one team to create impactful change. In the same spirit, she is a founding member of Bosch’s Diversity and Inclusion Council, an executive mentor for its professional development programs and executive sponsor for the resource group Women@ Bosch that started in Farmington Hills and now is a national program. “Christine is very driven. She will not accept anything but perfection. At the same time, she is a great coach and mentor to her associates and to finance associates throughout Bosch in North America. It is a true pleasure to work with her,” said Bosch NA CFO Maximiliane Straub.

CRAIN’S IS THE HOME FOR

NOTABLE WOMEN IN MICHIGAN

At companies across Michigan, notable women navigate company restructurings, argue high-stakes legal cases and find efficiencies in manufacturing processes. These women also mentor, teach and volunteer in their communities. Through this series, Crain Content Studio will profile more than 200 women in business this year.

BE ON THE LOOKOUT FOR THESE UPCOMING FEATURES IN THE NOTABLE WOMEN SERIES: L TA B

WOMEN IN HEALTH CARE NO

JUNE 18

L TA B

WOMEN IN TECH NO

AUG. 13

L TA B

WOMEN IN MARKETING NO

OCT. 8

If you’d like to nominate a woman you know, stay tuned at www.crainsdetroit.com/nominate

DEC. 10

ABOUT THIS REPORT Notable Women in Finance was produced by Crain Content Studio, the marketing storytelling arm of Crain’s Detroit Business. The women featured here were selected based on their career accomplishments, their involvement in nonprofits and community organizations and evidence that they mentor others in their field, as outlined in an extensive nomination form that was written with the help of experts in the business community. The nominators pay a processing fee to nominate the women; those chosen do not pay to be part of the section. Notable Women in Finance was managed by Leslie D. Green for Crain Content Studio. For questions about this report, contact Kristin Bull, Director of Crain Content Studio, at 313-446-1608 or kbull@crain.

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

CALENDAR

DEALS & DETAILS

FRIDAY, MAY 11

UPCOMING EVENTS

The Augmented Workforce: Michigan Designing for the Future. 7:3011:30 a.m. May 11. Robotics and artificial intelligence could reshape multiple parts of society, and profoundly reshape the path to income mobility and growth. Speakers include: Carla Bailo, president and CEO, Center for Automotive Research; Louay Chamra, dean, OU School of Engineering and Computer Science; Jeremy Hendges, deputy director, Michigan Talent and Economic Development; Andy Hove, president and CEO, AM General; Tom Kelly, executive director and CEO, Automation Alley; Jason Lee, executive director, Grow Detroit’s Young Talent; Mary Alice McCarty, director, the Center on Education and Skills at New America; Kristin Sharp, executive director, Shift: The Commission on Work, Workers and Technology; Rashida Thomas, director, Workforce Development and Education, Focus:Hope, and Michele Economou Ursete, executive director, Workforce Intelligence Network. Oakland University School of Engineering and Computer Science. Free. Website: newamerica.org

Keeping Information Safe: What You Need to Know. 11:30 a.m.-1:30 p.m. Washtenaw Economic Club. May 15. Cybersecurity panel Lanse LaVoy, vice president of Information Assurance, Quicken Loans; Fernando Maymi, lead scientist, Soar Technology Inc.; Mike Hanley, vice president of security, Duo Security Inc., and Alon Yaffe, director of product management/data protection, Barracuda Networks, discuss the top cybersecurity threats today and how businesses and individuals can protect themselves against them. Washtenaw Community College. Free members; $77.50 nonmembers. Phone: (734) 677-5060; email: washtenaweconclub@wccnet.edu A Conversation on the U.S. Economy and the Retirement Challenge. 11:30 a.m.-1:30 p.m. May 24. Detroit Economic Club. Tony James, executive vice chairman, Blackstone, discusses trade war fears, employment rates, the deficit and tax cuts. Westin Book Cadillac. $45 members; $55 guests of members; $75 nonmembers. Website: econclub.org

Women in Blue Celebration. 8-9:30 a.m. May 23. Detroit Public Safety Foundation. A celebration of the women within the Detroit Police Department, Detroit Fire and EMS and the programs and initiatives taking place to protect women Aquilina and children in the community. A portion of all individual ticket sales will support the investigation and prosecution of rapists identified by backlogged rape test kits. Judge Rosemarie Aquilina, who presided over the Larry Nassar abuse trial, will be the keynote speaker. A Women in Blue Officer of the Year and Women in Blue Firefighter of the Year will also be recognized at the event. MGM Grand Detroit Grand Ballroom. $125. Contact: Carter Drewry, phone: (313) 628-2169; email: cdrewry@detroitpublicsafety. org; website: detroitpublicsafety.org

PEOPLE EDUCATION Esther Jackson to project manager and instructional designer, Innovative Learning Group Inc., Troy, from project manager and instructional designer, city of Detroit.

Foundation, Troy, from director, Financial Analysis, UAW Retiree Medical Benefits Trust, Detroit. Also, Stephanie Davison to program officer, Human Services program, from project manager II, FHI 360, Washington, D.C.

NONPROFITS

REAL ESTATE

J Nikita Miller to director, Financial Planning and Analysis, The Kresge

J Carie Wagner to assistant vice president, Management Operations,

City Club Apartments, Farmington Hills, from regional manager, Greystar Real Estate Partners LLC, Charleston, S.C. To submit news of your new hires or promotions to People, go to crainsdetroit.com/peoplesubmit and fill out the online form. Please limit submissions to management- or partner-level positions.

ADVERTISING SECTION www.crainsdetroit.com/onthemove To place your listing or for more information, please call Debora Stein at (917) 226-5470 or email: dstein@crain.com

ARCHITECTURE Ann K. Dilcher, AIA, LEED AP Board of Directors

Quinn Evans Architects Ann K. Dilcher, AIA, LEED AP, a principal with Quinn Evans Architects, has been named to the company’s board of directors. A respected leader within the historic preservation community, Dilcher joined Quinn Evans Architects in 1997 and has overseen major preservation, rehabilitation, and adaptive use projects throughout Michigan.

MANUFACTURING Shaquia Warren Production Supervisor

Lucerne International Lucerne International is proud to announce the promotion of Production Supervisor to Shaquia Warren. Shaquia joined the Lucerne International team in 2014. She will be responsible for analytical and problem solving, manufacturing and shipping processes to ensure maximum efficiency, and delegating, managing, planning, scheduling and approving daily production workload. Her expertise in many facets of the production process allows for achievement of organization goals.

KNOW SOMEONE ON THE MOVE? For more information or questions regarding advertising in this section, please call Debora Stein at (917) 226-5470 or email: dstein@crain.com

ACQUISITIONS & MERGERS David Farbman, founder of advertising service Carbon Media Group LLC, Bingham Farms, has acquired sole ownership of streaming content site CarbonTV. Website: carbontv.com

CONTRACTS J Advanced Battery Concepts LLC, Clare, a battery technology company, has been awarded a $689,000 cost-plus fixed-fee contract to provide 4HN and 2HN batteries to the U.S. Army Tank Automotive Research Development and Engineering Center, Warren, the U.S. armed forces’ research and development facility for advanced technology in ground systems. Under the contract, Advanced Battery Concepts will engineer, design and assemble 4HN and 2HN research and production batteries based on its GreenSeal technology. Websites: advancedbatteryconcepts.com, tardec.army.mil J Franco, Detroit, a public relations, marketing and social media firm, has added three clients: American House Senior Living Communities, Bloomfield Hills, provider of housing for seniors in the Midwest and Florida; Rose Pest Solutions, Troy, provider of residential and commercial pest control; and the city of Royal Oak. Websites: franco.com, americanhouse.com, rosepestsolutions.com, romi.gov

EXPANSIONS J Healing Haven LLC, Madison Heights, an Applied Behavior Analysis therapy clinic for children with autism and other developmental needs, has opened a second facility, at 30755 Barrington St., Madison Heights, behind the original clinic, expanding services to include children up to 16 years old. The original clinic serves children ages 2 to 7. Website: thehealinghaven.net

NEW PRODUCTS J Lowry Solutions Inc., Brighton, an Industrial Internet of Things and Industry 4.0 solutions provider, launched a brand of software, Sonaria, a cloud and on-premise platform providing Industry 4.0 capabilities for supply chain traceability, manufacturing executing, work in process tracking, packaging automation, inventory management and asset tracking. Websites: lowrysolutions.com, Sonaria.com J OptiShot Golf, Northville, maker of golf simulators, has introduced BallFlight, a “trio-tracking” simulator that offers data on ball spin, ball and club speed and launch angle. Website: optishotgolf.com

NEW SERVICES J Sold by Eric Team, Keller Williams Realty Inc., Chesterfield Township, a real estate agent, launched a website dedicated to the Community Shield program, which provides community citizens such as police officers, firefighters, EMT, veterans, teachers and medical professionals discounted savings when purchasing a home. Website: soldbyericteam.com, communityshieldmi.org

Submit Deals & Details items to cdbdepartments@crain.com

SPOTLIGHT Interim U.S. attorney in Detroit to remain

The top federal prosecutor in Detroit will be staying in that position unless President Donald Trump chooses a replacement. The U.S. District Court ann o u n c e d Wednesday that its federal judges had votSchneider ed to appoint Matthew Schneider as the U.S. attorney for the Eastern District of Michigan. Schneider was named interim U.S. attorney by the Justice Department in January, but his temporary appointment was set to expire Friday. Schneider fills the post vacated when Barbara McQuade resigned more than a year ago. Prior to Schneider, Daniel Lemisch served as interim U.S. Attorney after McQuade left in March 2017. Court officials say Schneider will lead the federal prosecutor’s office until the Senate confirms a presidential nominee.

Laura Bell to step down as brewery CEO

Laura Bell will step down after more than a year as CEO of Bell’s Brewery Inc. next month. In a letter to d i s t r i b u t o r s, the second-generation co-owner of the Kalamazoo-based brewer said she will “exBell plore other passions and interests,” Brewbound reported. Bell will reportedly keep her board seat and stake in the company when she vacates the position May 18. Her father and founder, Larry Bell, will oversee operations as president of the company.

Van Dyke-Horn PR firm expands

Van Dyke-Horn Public Relations, based in Detroit, is opening an office in Lansing to establish a closer touchpoint for clients near the capital. The new office will be led by communications veteran McNulty Saxton M a u r e e n McNulty Saxton at 111 E. Michigan Ave., a block from the Michigan State Capitol building. CEO Peter Van Dyke said the expansion makes sense for its work with outstate clients, including Lansing-based nonprofit Michigan Historic Preservation Work, Diocese of Lansing and Mission Point Resort on Mackinac Island. It will also serve as a more suitable launchpad for growing its work with legislation coalitions. Saxton started in her new role April 1.

Page 2

NANOBIO FROM PAGE 3

Peralta said BlueWillow will be participating in two Phase I U.S. Food and Drug Administration trials. The first, which will begin late this year or early next year, is as a partner on an anthrax vaccine with Public Health England, which was awarded a $24 million grant by the National Institutes of Health. The second, funded in part by a $10 million NIH grant, will be for a trial expected to start next year on a pandemic flu vaccine. “Over the past several years, our research has increasingly demonstrated that our intranasal platform can play a pivotal role in the vaccines of tomorrow,” Peralta said in a press release. “Much of our data points to increased protection against some of the world’s most severe respiratory and sexually transmitted infections.” Hugo Braun, a partner and co-founder of North Coast Technology Investors LP, joined NanoBio’s board in 2015. He said that while NanoBio’s core technology has fascinated investors for years, the problem has been finding an application where it clearly stands out. Of the long focus of using the antimicrobial properties of its emulsions to treat fungus and cold sores, Braun said there was such promise that it lured partners such as GlaxoSmithKline plc, Merck & Co. and the Washington-based private equity firm of Perseus LLC. “Perseus alone put in $40 million and others put in tens of millions,” said Braun. “It worked, but ultimately, it wasn’t very effective from a clinical point of view. I love the new plan.” “The NanoBio team, led by Dave Peralta, have done a good job pivoting the company. The new investment round and the multiple programs they have under development have been making steady progress and are promising.” said Jim Adox, managing director of the Ann Arbor office of Madison, Wis.-based Venture Investors LLC, a previous investor in NanoBio who did not join this round. Peralta said Jim Adox: Good there were job pivoting the enough positive company. results from human trials for topical treatments to believe that other trials structured differently would have led to better results, but that there was no appetite from previous investors to raise the large sums needed for those trials. But he has hopes that some of the topical applications can move forward through partnerships or licensing, and that BlueWillow will use the NanoBio brand for those efforts. What was the secret sauce behind what made NanoBio so intriguing to investors over the years? A sauce made up of extremely tiny droplets, and a sauce that acted in a completely unforeseen manner. In 1999, company founder Baker and his fellow researchers at the Center for Biologic Nanotechnology were looking for a medium to deliver genetic material into bacteria, and came up with an emulsion of tiny droplets, each about 1/400th the width of the average human hair, made up of soybean oil and solvent and coated with a lubricant. But instead of delivering the genetic material into the targeted bacteria, the emulsion exploded it on contact. “It was salad dressing that kills,” Baker said.

RAIN DETROIT BUSINESS C R A I N ’ S D E T RCO I T’S B USIN E S S // M A Y 7 , 2 0 1 8

The droplets were so slippery they wouldn’t bind with each other, but they would bind with the bacteria, causing it to burst open to form a larger droplet. Tests showed similar results with a wide range of viruses, including HIV and influenza. The nanoemulsion and what it did with viruses and bacteria were very cool science, and cool applications seemed a certainty. Peralta and BlueWillow investors hope there are still commercial applications, just of a different sort. “If things go well, we could explore an initial public offering in three years,” he said. NanoBio previously has made 101 appearances in Crain’s since its founding, the first major story in November 2001 under the headline “Bio-terror defenses take shape in local laboratories,” a post-9/11 piece on NanoBio getting funding for an emulsion that could protect against anthrax and other threats. News of various federal grants were reported over the years, including one in 2004 on the company getting a $3.2 million contract from the U.S. Department of Defense to development of antimicrobial emulsions to treat soldiers with fungal, viral and bacterial infections. The biggest news in company history broke in 2006, with Washington-based Perseus LLC announced it was making a $30 million investment in the company. “We see this as a billion-dollar company,” Norm Selby, a partner in the firm, told Crain’s about why it was breaking its own rules by investing in a small company with no sales and no product ready for market. The investment was the second-largest in a state biotech company in 10 years, just behind the $31 million invested in Ann Arbor-based QuatRx Pharmaceuticals Co. in December 2004. In 2009 more big headlines followed the news of another funding round of $22 million led by Perseus, this for the development of a topical treatment of acne and research into a possible treatment for cystic fibrosis. Also in 2009, NanoBio announced it had signed an exclusive licensing agreement with GlaxoSmithKline plc for the over-the-counter sale of a topical treatment for cold sores. The deal gave NanoBio an upfront fee of $14.5 million, with milestone payments of up to $40 million plus royalties on future sales. But eventual Phase 3 trials for the U.S. Food and Drug Administration didn’t show enough efficacy to bring the product to market. In 2012, the company announced it had closed on an $11 million round of venture capital from previous investors. In 2014, NanoBio announced it had signed a licensing agreement with a subsidiary of Merck & Co., the New Jersey-based pharmaceutical giant, to help develop two potential vaccines, Merck receiving the exclusive rights to an intranasal vaccine to fight respiratory syncytial virus and nonexclusive rights for an intranasal flu vaccine. Alas, soon after Merck scaled back its vaccine program, with all rights reverting to NanoBio, those rights now at the heart of BlueWillow’s business model. “We almost died in 2015. It was a very trying time,” Peralta said. He was able to get some debt converted to equity, allowing the company to keep more of its limited cash while it assessed the appetite for funding for the latest pivot. “It’s been a rough road. For those of us who have been here, it’s been very aging,” said Peralta. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

May 7, 2018 35

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In the minors, ballpark projects get both public and private dollars

By Bill Shea bshea@crain.com

In baseball’s minor leagues, stadium financing deals range from entirely privately financed at the lower levels, to entirely taxpayer funded. The Detroit Tigers got $40.8 million two years ago from Florida taxpayers to renovate and expand 8,500-seat Joker Marchant Stadium in Lakeland, Fla., which has been the site of the team’s spring training games since 1966 and is home to two of their minor league clubs.

Independent leagues like the United Shore Baseball League in Utica, which is seeking a city for taxpayer-funded expansion, are the lowest rung of professional baseball where common to find both publicly and privately funded stadiums. J In Michigan, 4,660-seat Wuerfel Park, home of the independent Frontier League’s Traverse City Beach Bums, was built with $6 million from the team’s owners, the Wuerfel family, in 2006. J Last year, a city in Texas opened the 1,740-seat Depot at Cleburne

Station, home to an independent baseball team, at a cost of $25 million. It was funded by a voter approval of a half-cent sales tax. J Fifth Third Ballpark, the suburban Grand Rapids home of the Detroit Tigers’ West Michigan Whitecaps Single-A affiliate and originally named Old Kent Park when it opened in 1994, was privately financed by the team owners at a cost of $6.5 million. It seats 8,942. J In Midland, the Single-A Great Lakes Loons, affiliated with the L.A. Dodgers, play at $33 million, 5,500-

USPBL FROM PAGE 3

“When you have that model, you have to have everything working for you,” Appleby said. “We’ve created a scalable model. Whatever town we go to, we’re gonna have all games in the best weather, on weekends.” But he’s not paying for another stadium up front. “Now that we’ve proven this concept, we want to go the conventional route where communities pay for the ballpark and we pay rent for 20 or 30 years,” he said. “The reason that it took me so long to build the ballpark in Southeast Michigan is that 90 percent of ballparks are publicly financed. Here, I’ve had to bite the bullet and privately fund it or I never would have got it built.” Another USPBL stadium and team would cost about $18 million, he said, with his company back-stopping the public risk. “We’re asking for a public subsidy in the sense of ‘Help us to build this park,’” he said. “We’re guaranteeing debt service; it’s not the risk of a billion-dollar deal.” Appleby, 55, acknowledged there is a couple of decades worth of academic research that shows that public stadium subsidies yield negligible economic benefits for local communities — but almost all of the research is focused on taxpayer aid for stadiums and arenas used by major league teams. Far less research has been done on use of tax dollars to build community ballparks at the scale of Appleby’s. “It’s a different perception — a small ballpark is more a community park than a big stadium,” he said. “It’s $18 million versus a billion.”

The sales pitch Appleby is selling his idea of public stadium investment the same way major league teams try to convince larger cities to fund ballparks — the spillover effect. “Property values go up around it, as it has in Utica,” he said. “We’ve really put Utica on the map in many different ways.” Downtown Utica business owners have told Crain’s in the past that they’ve seen an uptick in business and added staff to handle larger crowds during baseball season. The two-square-mile bedroom community is home to just 4,700 people, nestled between far more populous Sterling Heights and Shelby Township. Sports team owners typically seek taxpayer subsidies by suggesting their stadiums or arenas will improve the lo-

BILL SHEA/CRAIN’S DETROIT BUSINESS

A shipping container has been remade into a team retail store at Jimmy John’s Field.

cal tax base, provide jobs, increase nearby property values and bolster civic pride while providing entertainment options. Critics say using public money to aid billionaire team owners is a waste because those dollars could be better spent on local infrastructure, emergency services, schools, and other under-funded areas. Also, fan spending at games is often just money not spent on other goods and services in other places — called the substitution effect by economists — which blunts any added economic impact. Appleby is wealthy, but not a billionaire. He privately financed construction of Jimmy John’s Field, but did get some public help: The Utica Downtown Development Authority leased the 15.7-acre project site to him for $1 a year for 30 years with two 10-year options. The DDA and Appleby together also built a 850-car parking lot adjacent to the stadium. Because the stadium land is a capped brownfield site — a former town dump that ended up adding additional unexpected construction costs — the city’s DDA agreed to provide $400,000 in federal brownfield redevelopment funds for cleanup.

Are subsidies business welfare? One stadium finance expert is skeptical of Appleby’s need for public financing. “If he’s raking in money, why does he need cities to put up the money? Why not just go to a bank? In the rest of the business world, if you have a profitable business model, venture capital will come running,” said Neil deMause, co-author of the book “Field of Schemes” that took a critical look at public funding for pro sports stadiums. His website Fieldofschemes.com carries news and analysis of sports venue funding situations around the country. Instead of need, it may be a case of

Appleby preferring to use public financing because it typically commands better financing rates when tax-exempt municipal bonds are floating to pay for construction. He didn’t comment on the specifics of how public funding might work for a USPBL expansion ballpark. “We have a proven the concept with the league and ballpark,” he said. “Some of those cities that I alluded to really want to make this happen.” One local academic familiar with the USPBL said the grassroots ballpark strategy could be beneficial to small towns. “A local level subsidy for these type of ‘community center’ facilities can be a great deal in cities needing a catalyst to drive development, an idea to revitalize a vacant property or to be the primary recreational facility in the community,” said Victor Chiasson, an assistant professor of sport management at Eastern Michigan University, via email. “The availability and access to the facility for community events on a weekly basis makes this concept more attractive for local residents to support their investment.” There’s some benefit to the public if the ballpark is open for use outside of just pro baseball games, deMause said. Jimmy John’s Field is used for a variety of community and charity events, and expansion ballparks would use that model, Appleby said. “Six hundred charities leveraged the ballpark last year to raise money,” he said. “We’ve never once turned down a charity.” “Obviously, if you’re not just looking at is an economic development project, but as a public benefit because people get to play there, that’s an added benefit,” deMause said. Appleby could still face opposition in expansion markets. “There will be some political challenges with smaller market community leaders,” said Victor Chiasson, an

seat Dow Diamond that opened in 2007 and was financed privately by team’s owner, the nonprofit Michigan Baseball Foundation. J Lansing’s city-owned 7,527-seat Cooley Law School Stadium, formerly Oldsmobile Park, was built for $12.8 million by the city to be home of the Lansing Lugnuts, the Toronto Blue Jays’ Single-A affiliate. The city spent an additional $13.5 million to modernize the stadium in 2015, and an $11 million residential project attached to the ballpark was privately financed by a developer. assistant professor of sport management at Eastern Michigan University, via email. “On the front end of the equation, elected officials may be asking for more skin in the game from the league executives to partner on upfront costs to be able to sell it to their constituents. Another issue that will come up from residents of the community and elected leaders will be the back end of the story, what happens when the facility ages out? No community leader wants their legacy to include a facility without its primary revenue source who have moved on to greener pastures.” A new USPBL city would involve a stadium and a new team, with a second team likely relocated from Utica, which is currently home to four teams that share the 1,900-seat stadium alongside M-59. The goal is a schedule of four to five games a week (Thursday-Sunday) for 18 weeks from May to September. Expansion would turn the USPBL into what in baseball is known as a bus league — teams travel between cities by bus. Less glamorous than flying first class like major leaguers, but it’s significantly cheaper. When he launched the USPBL in 2016, Appleby’s plan was to expand to 20 teams in 10 Midwest stadiums over the next decade, with 10 to 12 teams by 2020.

Corporate support What’s made the USPBL profitable is Appleby using his deep Rolodex and experience from 30 years in sports business to leverage corporate dollars. Among the companies with suite or advertising deals at the ballpark are Budweiser, General Motors Co., Ford Motor Co., AAA, Scotts Miracle-Gro Co., Pepsi, DTE Energy, Dunkin’ Brands Group Inc., American House, and Birmingham-based Belfor USA. He added Huntington Bank and FCA Mopar this season. The stadium has leased all of its 26 suites and field-level tables at prices ranging from $20,000 to $55,000 for the season. Troy-based mortgage lender United Shore Financial Services LLC signed a 10-year deal to put its name on Appleby’s baseball league, and Champaign, Ill.-based Jimmy John’s Franchise LLC and its franchisees jointly signed a 10-year contract for the stadium name. Financial terms were not disclosed. The USBPL would look to strike such deals in any new city, too. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

DMC

FROM PAGE 3

Executives in the negotiations have signed nondisclosure agreements and are prevented from openly talking about the negotiations. They have confirmed to Crain’s talks are going on. But I don't believe even Wayne or Henry Ford know what, if any, deal will be cut. Two DMC sources told me confidentially that Tenet attorneys and top executives in Dallas were outraged by Wayne State’s May 15 deadline ultimatum to have contract talks wrapped up, especially since they knew WSU also was talking with Henry Ford Health. Because of the WSU-HFHS talks and because the WSU-DMC contract talks have been long, difficult and tedious at times, some say there is personal animus between several top Tenet and Wayne State executives. They also said local DMC executives get along well with Wayne State, but those local executives are sometimes frustrated that Tenet has imposed some unrealistic expectations and restrictions on the talks. Some UPG physicians, who are also Wayne State faculty members, are also upset at how Wayne State has handled the negotiations. But it is unclear what specifically they do not like. DMC and Wayne State officials will not talk on the record about these issues, and in some cases have denied what sources have told me. There appear to be two related contract issues that the sides say are unresolved. But accounts differ on how far apart the two sides were at the time Tenet halted the negotiations. One issue appears to be whether Wayne State or DMC would be allowed to terminate early from the proposed five-year contract if one side want to partner either wholly or partially with another health care organization. I was told by DMC sources that Wayne State wanted provisions in the contract that would allow the university to terminate the contract early without legal problems. For example, such an “escape clause” could allow WSU to enter into an clinical services affiliation with Henry Ford. Chuck Shanley, M.D., CEO of Wayne State UPG, said the UPG wants a strong five-year agreement and suggested DMC was asking for fewer years. DMC said the reverse was true. Shanley said that even if WSU signs an agreement with Henry Ford, UPG could still contract with DMC and provide clinical and administrative services to the for-profit hospital. “There are multiple ways for academic medical groups to work with different partners,” he said. In an email to UPG doctors Thursday afternoon, Shanley reassured faculty that Wayne State University has guaranteed it will “provide the necessary support to ensure that faculty salaries are protected so that our educational and research missions continue without interruption.” The second unresolved issue has to do with how much DMC can solicit UPG doctors for employment. Right now, the current contract includes a non-solicitation provision that forbids DMC from contacting or even discussing with UPG doctors the possibility of employment at DMC. WSU officials have complained that DMC recruiters call UPG doctors with lucrative offers to leave WSU and work directly for DMC. They say dozens if not hundreds of UPG doctors have been poached over the past 15 years by DMC to replace faculty physicians in a number of clinical areas. But DMC sources say they do not

CRAIN’S DETROIT BUSINESS

The Detroit Medical Center notified Wayne State University that it would terminate their contract when it expires May 15.

make recruiting phone calls. They say UPG doctors call them with requests to be hired. Nearly two weeks ago, Jack Sobel, M.D., chair of UPG and dean of the medical school, sent a letter to DMC asking that it "cease and desist" in efforts to recruit UPG physicians. Four sources familiar with the situation told Crain’s that Tenet has been offering higher salaries and benefits to Wayne State doctors to encourage them to join DMC's employed medical group. “It is important for you to know that these recruitment efforts are a clear violation of the non-solicitation clause that both parties have signed,” Sobel said in the email.

The Henry Ford question Both of these issues, however, pale in comparison to the larger problem: a belief by DMC that Wayne State is intent on leaving DMC for Henry Ford. Who wants to get married if they

know their partner is in love with someone else and is courting them at the same time planning a marriage with you? That is sort of how it was explained to me. Because of that belief, two sources told me that Tenet wanted an exclusive contract so WSU could not affiliate with HFHS. Wayne State declined. On the other hand, WSU also wanted at least a two-year noncompete clause in the contract to essentially restrict UPG doctors from being employed at DMC. Wayne State knows that DMC has made at least two offers the past decade to acquire UPG. Wayne State is concerned that by poaching doctors slowly, DMC will essentially acquire the UPG doctors over time. DMC declined to sign off on the noncompete clause.

Next steps for WSU and DMC Barring change of heart from DMC or WSU, Tony Tedeschi, M.D., CEO of

DMC, said the six-hospital system will look for other university partners replace WSU. Possibilities include the University of Michigan, Michigan State University, Central Michigan University and the University of Toledo. Shanley told Crain’s the degree of difficulty in having 300 academic doctors from another city travel to Detroit every day or move to Detroit to take up residence in the city is immense. He said he can't imagine DMC being able to strike such a deal. But Tedeschi said DMC will do what is necessary “to provide excellent care for Detroit’s children and adults and will begin immediately looking for a new long term academic partner for DMC.” Wayne State, on the other hand, will likely ramp up talks with Henry Ford now that it has no adult services funding from DMC after May 15. Wayne State and Henry Ford already conduct joint research, and Wayne State medical students rotate at Henry Ford Hospital. Crain’s so far has reported the possibility of UPG and Henry Ford Medical Group merging, or affiliating. Henry Ford has a 1,200-physician group, and UPG has about 400 physicians. More than 15 years ago, former Dean John Crissman, M.D., tried to expand the relationship between Wayne and Henry Ford. “Working with (former medical group CEO) Mark Kelley, we were able to coordinate some research and graduate student education programs, but both Mark and I left our positions before a more complete merging of medical education programs could occur,” Crissman previ-

ously told Crain's. There also is the possibility of a deal where Wayne State would create a new pediatric department and work more closely with Henry Ford's primary care pediatricians. This is because Wayne State and University Pediatricians, the primary medical group at DMC Children's Hospital, have parted ways. Crain's has reported that UP and University of Michigan have discussed a possible affiliation. UM declines to talk about it; and UP does not return phone calls or emails. In a May 1 email, Herman Gray, M.D., WSU pediatrics department chair, notified the medical school's pediatric faculty that the agreement between UP and WSU had ended on March 21. “As a result of this termination, UP is no longer a recognized clinical service group (practice plan) of (medical school) for pediatrics,” said Gray, the former CEO of Children’s Hospital. “(The medical school) remains committed to its mission, with or without UP, to educate a diverse student body in an urban setting ... (and) to prepare physician and biomedical scientific leaders to achieve health and wellness for our society.” Shanley said UPG is pursuing a number of strategies to ensure growth and stability. For example, UPG is holding two open house events in May to encourage doctors to use UPG’s Maple Ambulatory Surgery Center in Troy. But whether WSU and HFHS strike a deal, whether DMC affiliates with another university, or whether the two longtime partners kiss and make up — or some combination of these — is still anybody's guess.

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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 // M A Y 7 , 2 0 1 8

QLINE FROM PAGE 1

“There’s lots of learnings," said Matt Cullen, CEO of M-1 Rail, the nonprofit created by business and civic interests to build the streetcar system. Cullen, who acts as a part-time CEO of M-1 Rail among his other duties as a top executive in businessman Dan Gilbert’s family of companies, acknowledged the integration of the streetcar alongside passenger vehicles, buses and pedestrians was “more complicated” than planners expected. “Ten years ago, nobody plowed snow in Detroit. Now we’ve got to make sure they plow near the curb so somebody can park next to it and not block our line,” Cullen told Crain’s. “We need people to understand that the idea of double-parking to run into Starbucks doesn’t work anymore because now you’re holding up the train, and your car’s going to get towed away.” QLine operational data shows a majority of the delays have occurred along stops in Midtown, particularly at Warren Avenue and Little Caesars Arena, where the southbound tracks alongside the new arena were initially routinely blocked by motorists picking up concertgoers or Red Wings and Pistons fans after games. In the winter, towing vehicles on the track — disabled or intentionally parked there — could take up to 45 minutes. While DDOT and SMART buses could maneuver around the obstructions, the QLine sat idle in its tracks, frustrating passengers. “We should have been better-prepared,” said Cullen, who gives the QLine a “C+ or B-” grade for first-year operations.

Addressing problems M-1 Rail and the QLine’s private operator, Transdev Services Inc., have worked with the city’s transit police to temporarily dedicate the right lane to QLine before and after sporting events and concerts to keep the streetcar moving south, Cullen said. Since launching to great fanfare on May 12, 2017, the QLine’s service also has been hampered at times by technological hiccups, including a street-

THANOPOULOS FROM PAGE 1

They expanded HHI to 3,000 employees and 15 plants in Michigan, Arkansas, Illinois, Indiana and Ohio before reaching a $750 million deal to sell the company to New York private equity firm American Securities Inc. for an 8.5-times return on capital — a proverbial home run in the auto investment sector. The same year, American Securities acquired Plymouth-based Metaldyne LLC for $820 million, three years after high debt and the slumping sales forced it into Chapter 11 bankruptcy. The firm rolled HHI and Grede Holdings LLC, which it acquired for more than $800 million, into Metaldyne to form Metaldyne Performance Group in 2014, then launched a $150 million initial public offering in 2014. Thanopoulos remained with the company as its CEO, leading it to a $3.3 billion acquisition by Detroit-based American Axle & Manufacturing Holdings Inc., which closed in April 2017. Thanopoulos left after closing the deal, which left American Securities with a payout of $693 million and a 23 percent stake in Ameri-

CRAIN’S DETROIT BUSINESS/CHAD LIVENGOOD

A QLine train is obstructed by a Detroit Department of Transportation bus as it lets off and takes on passengers.

car-tracking app that didn’t initially account for delays caused by vehicles blocking the track, making the waiting times between trains inaccurate. “If (the streetcar) stops behind something that’s parked, it will tell you it’s two minutes away for the next hour,” Cullen said of the initial tech flaws that have since been improved. More frequent cars have reduced wait times — or headway — from 19 minutes to 10 minutes at the service’s 12 stops, according to M-1 Rail’s firstyear performance report. M-1 Rail has been leaning on Lombard, Ill.-based transportation management Transdev Services to address service issues after bad rider experiences with delays. “We’re really working hard with Transdev to amp up their game,” Cullen told Crain's. Transdev Services has a five-year $15.5 million contract with M-1 Rail

“There’s always a delay. It’d be a good system if it would move smoothly without interruption.” — Stanley Brooks, QLine rider

of Transdev North America also operates streetcar lines in Atlanta, Cincinnati and New Orleans. Scott Hagen, a spokesman for Transdev, said the company is “constantly seeking ways to enhance service while operating within budget” as it enters its second year of operating the QLine. “Any new mode of transit introduced to a city will undergo transitions and adjustments and reveal opportunities to improve,” Hagen said in a statement. “Maintaining acceptable, reliable headways within the existing environment has, at times, been difficult, but headways have improved.”

‘We’re going to make it work’

to operate the QLine. The subsidiary

In its first 11 months of operation, the QLine averaged 3,700 daily riders, well short of the system’s

can Axle — an unambiguous win for to be global to succeed, said Michael from 100 percent in North America in Robinet, managing director of the 2012 down to 70 percent today, said the investor. “KPS called the day after the Amer- automotive global advisory practice Ramzi Hermiz, president and CEO. ican Axle deal closed and said, ‘Let’s for IHS Markit in Southfield. “L&W Roughly 50 percent of its business is get the band back together and invest already has scale in the U.S. and are now made up of six automakers, two in a good spot. While the mom-and- each in Europe, Asia and North in autos again,’” Thanapoulos said. But this time, the market is differ- pop stampers are dying, stampers America. Not coincidently, revenue has ent. L&W isn’t distressed and is well like L&W are picking up the slack. If grown from roughly positioned in the North American market with “We call it Autokiniton for a reason. $400 million in 2012 to a projected nearly $1 bil80 percent of its prod- We’re going to start right here in lion this year. ucts supplied to hot Going global is Thaselling trucks, the U.S. because it’s more nopoulos’ top priority. sport-utility vehicles comforting for our experience, but The global metal and crossovers. we’re setting our sights globally.” stamping market is exIn late April, Ford pected to reach $299.6 Motor Co. announced it — George Thanopoulos, billion by 2025, accordplanned to end production of all of its car lineup except the they can keep up with innovation ing to a 2018 report by Grand View Mustang by 2020, meaning 90 per- and perform well in light weighting Research Inc. Rising use of sheet cent of its North American produc- (by using stronger, lighter steel or al- metal in industries such as automotion will be trucks, SUVs and CUVs ternative metals), they can really take tive, industrial machinery and cononly. General Motors is reportedly to advantage of the sweet spot of manu- sumer electronics is expected to drive industry growth, particularly in end production of its Chevrolet Sonic facturing.” Thanopoulos said L&W is in the the Asia Pacific region. and Impala as well. “Customers want them to expand “Because trucks, SUVs and CUVs, lightweight steel market, and he are so North America-based, where- plans to use Autokiniton to access geographically, and the family was as cars are on global platforms, L&W stamping operations that use alumi- hesitant. We are not,” Thanopoulos doesn’t see the pressure to expand num and other materials, like mag- said. “We call it Autokiniton for a reason. We’re going to start right here in globally” causing the company to re- nesium, in the future. Competitor Shiloh Enterprises, the U.S. because it’s more comforting main very regional, Thanopoulos which operates its technical center in for our experience, but we’re setting said. Unlike auto suppliers in other Plymouth, spent several years ex- our sights globally.” But going global doesn’t mean product areas, stampers don’t need panding globally — moving business

goal of 5,000 paying passengers each day. The QLine charges $1.50 for three hours of riding the streetcar or $3 for a 24-hour pass. M-1 Rail projects revenue will reach $1.2 million for the first year, one-fifth of the actual $5.8 million operating cost that’s being subsidized by private interests. About $417,000 of the revenue came from passenger fares, according to M-1 Rail’s first-year operational report. Daily commuter use of the QLine also has not taken off, with the service selling just 130 annual passes, which cost $285 in January and decrease in cost by $30 each month. By comparison, MoGo Detroit bike share sold 1,384 of its $80 annual passes in its first 11 months of operation, a spokeswoman said. Cullen, though, is optimistic continued improvements in the QLine’s service will lure back riders who may have been discouraged by previous experiences. “As we improve our service, which we are and we will, I think that the way that people utilize it will be … augmented by people that are commuting every day,” Cullen said. But there are some things about the QLine that even ardent supporters of additional mass transit options can’t get over. The most frequent criticism of the $187 million QLine from riders and transit advocates alike is why the track was not built down the center of Woodward Avenue through Midtown, where the majority of the car-on-the-tracks delays occur. “I don’t know if they thought this out,” Brooks said during a return trip on the QLine from New Center to downtown. The design of the streetcar and its impact on streetside parking played the biggest role in deciding to locate most of the track in the far right lane on both sides of the avenue, Cullen said. “We are where we are,” Cullen said, “and now we’re going to make it work.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood there aren’t plenty of opportunities in the North American market, Hermiz said. “Our focus is really on content per vehicle,” Hermiz said. “Because we’re so focused on lightweighting, I can get $1,500 of our content per vehicle. We’re nowhere near that yet. So we still see North America has a huge growth opportunity for us.” Thanopoulos sees a similar growth pattern for Autokiniton, adding more expertise through acquisitions in alternative metals such as magnesium. “This business doesn’t just have to be steel,” Thanopoulos said. “The whole focus is lightweighting, and we can definitely take advantage of that to strengthen our position here and anywhere else.” For L&W, Autokiniton provides a path forward. The company is family-owned and current President Scott Jones and management will remain in place. Thanopoulos will serve as its executive chairman. “There was no succession plan, and we can provide a great transition,” he said. “We’re providing the succession plan with the ability to scale up with the right balance sheet.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

C R A I N ’ S D E T R O I T B U S I N E S S // M A Y 7 , 2 0 1 8

THE WEEK ON THE WEB

RUMBLINGS

Edsel Ford II: Ford board may vote on train station plan May 10

Is Hantz property up for sale? He says no

APRIL 27-MAY 3 | For more, visit crainsdetroit.com

ord Motor Co. board member Edsel B. Ford II said last week that the automaker’s board of directors “has been briefed” on fast-moving plans to purchase the long-vacant Michigan Central Station in Detroit as part of a “big redevelopment” of Corktown. Ford’s comments mark the first time a member of the Ford family or any company official has confirmed the automaker is pursuing purchase of the train station, which Crain’s first reported March 19. Ford, the great-grandson of company founder Henry Ford, commented on the company’s efforts to establish a campus for employees working in the development of electric and autonomous vehicles of the future following a ceremony at Campus Martius honoring his work on the Detroit 300 Conservancy group that was instrumental in creating the park. The Ford Motor Co. board plans to discuss the train station deal at its May 10 meeting and could take a vote on the major real estate acquisition proposal, Edsel Ford II said. “It doesn’t need a vote, but it requires buy-in,” Ford said. Internally at the Dearborn automaker, Ford Executive Chairman Bill Ford Jr. has been said to be driving the push for the company to re-establish a major presence in Detroit some two decades after the company's last employees left the Renaissance Center, whose construction was led by Edsel Ford II’s father, Henry Ford II. “Bill’s excited about it, and I’m excited about it,” Edsel Ford II said, calling it a potential “big redevelopment of southwest Detroit.” Ford cautioned there’s no done deal yet to purchase the train station from the family of billionaire trucking mogul Manual “Matty” Moroun. “There’s T’s to cross and i’s to dot and nothing is — as you know — officially announced yet,” Ford told reporters. The push to establish a campus in Corktown beyond the building Ford purchased in December at the corner of Michigan Avenue and Rosa Parks Boulevard is driven by a desire to “cluster” the autonomous and electric vehicle units in one spot, Ford said. “I think that’s what’s really driving it,” he said. The Michigan Central Station has sat vacant since the last Amtrak train left the station in January 1988 and become an internationally recognized symbol of the city’s late 20th century decline. The Moroun family’s Crown Enterprises has said it spent $8 million installing 1,100 new windows in the once-cavernous building in 2015 after Mayor Mike Duggan pressed businessman Matthew Moroun to make improvements. But there’s an unknown cost of rehabilitating the station and its 13-floor office tower atop of the 110,000-square-foot first-floor concourse that sat open to the elements for years — a challenge the Ford scion acknowledged Monday.

KIRK PINHO/CRAIN’S DETROIT BUSINESS

Robert Taubman (left), president, CEO and chairman of the board of Bloomfield Hills-based Taubman Centers Inc.; Dan Gilbert, founder and chairman of Quicken Loans Inc. and Rock Ventures LLC; and Christopher Ilitch, president and CEO of Ilitch Holdings Inc., shared the stage for about 15 minutes at the Urban Land Institute’s annual spring meeting, which drew 4,000 real estate professionals from around the world to downtown last week.

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

The number of years DTE Energy said it would take to remove 1,300 miles of obsolete power lines in Detroit, an issue that caught the attention after a 12-year-old girl was electrocuted while playing with friends in 2016.

The number of years of that Detroit’s finances and management were subject to state oversight.

$200M

The amount that Olympia Development of Michigan plans to invest in six new construction and redevelopment projects in the District Detroit area.

“I don’t know how long it’s going to take to redevelop all of that if we did buy the building,” Edsel Ford II told reporters. “But it seems to me that the building is in somewhat disrepair, so we would have to spend some time and effort and redo it all.”

BUSINESS NEWS J The Ilitch family’s Olympia Development of Michigan is planning six new construction and redevelopment projects totaling nearly $200 million that are anticipated to bring 400,000-plus square feet of office space and more than 70,000 square feet of retail space to Detroit. J Supplier Adient Ltd. reported a net loss of $168 million for the second fiscal quarter of 2018 dragged down by headwinds in the company’s seat structures and mechanisms business combined with a weakness in interiors. J Lear Corp. said it will close a seating plant in Ajax, Ontario, after union members there rejected the latest tentative contract offer by 94 percent last week. J In tandem with the warming weather, Pure Michigan is launching its $4.2 million “Long Live Summer” campaign with a slew of digital and traditional advertising placements.

J Urban One Inc. has agreed to sell the assets of WPZR 102.7 FM to Educational Media Foundation in California for $12.7 million. In the deal, Urban One will retain the intellectual property of WPZR. J GreenPath Financial Wellness bought credit counseling nonprofit Rural Dynamics Inc., completing its fourth deal in 12 months aimed at expanding its national reach. J H.W. Kaufman Financial Group Inc. has acquired Stonemark Inc., a Texas finance company — its 18th acquisition since 2010.

OTHER NEWS J A group of 150-200 Chinese government officials and business executives will visit Detroit this week amid great momentum in the city and trade tensions on the national level. J Former Volkswagen CEO Martin Winterkorn was charged in federal court in Detroit with conspiring to mislead regulators about the German automaker’s diesel emissions cheating. J The University of Michigan-Dearborn’s Center for Arab American Studies received a grant to expand “Halal Metropolis,” a three-year project exploring how Muslim culture has enriched Southeast Michigan. J Former Livernois Dental owner David Johnson has been sentenced to about seven months in jail for Medicaid fraud and ordered to pay $1.7 million in restitution. J The Quick Lane Bowl is returning to Ford Field for its fifth iteration on Dec. 26. The college football matchup will be played at 5:15 p.m. and aired on ESPN. J More than a dozen buildings downtown to be illuminated in blue and green throughout May in support of Shine a Light on NF awareness campaign. J The city of Pontiac has struck a tentative deal to end a $14 million legal battle dating back six years and centered on the downtown Phoenix Center parking garage and amphitheater. J Wayne State University’s engineering school received a $1 million gift from LGC Global to give Detroit schools students full-tuition scholarships. J The Detroit Historical Museum commemoration of the city’s 1967 uprising has been honored with the 2018 National Medal for Museum and Library Service.

ohn Hantz says he is not selling his Hantz Farms property. On Tuesday, a Crain’s reporter at the Urban Land Institute conference for 4,000 real estate developers, brokers and investors noticed business cards showing a map of his 188 acres of property on the lower east side on one side of the card, with text saying “Would you like to develop/own the next opportunity in Detroit?” The other side of the card says the 188 acres bounded by St. Jean, Van Dyke, East Jefferson and Mack has 1,970 parcels with multiple uses and zoning classifications with “one seller.” But Tina Bassett, a spokeswoman for Hantz, said he “never saw the card” before it was placed on tables at the conference held at Cobo Center last week. She said Bingham Farms-based Core Partners LLC approached Hantz about “seeing what would happen with your property” at ULI and he thought the conference was for urban planners, not real estate developers and investors. “John is not looking to sell the property,” Bassett said. “He’s looking to plan what he’s doing to the property. He’s definitely improved the environment for the residents there, and the Hantz Foundation has worked on the schools in the area. He is interested in ideas of how people see that area developing.”

Hantz assembled the property several years ago in a process fraught with criticism from some who viewed it as a land grab. “The purpose of the farm, the whole mission of the investment, is to create truly livable neighborhoods on the lower east side of Detroit and the farm is doing that. It’s not that the farm is for sale. It’s that we have made progress of eliminating blight,” said Mike Score, president of Hantz Woodlands LLC. “We have had a lot of inquiries from developers who have told us from their perspective that Hantz Woodlands has become attractive. We are exploring options.” There are about 24,000 trees currently planted on the land at the rate of about 1,000 per acre, Score said, adding that Hantz has spent about $7.5 million on the Hantz Farms project since it began in 2009. “It’s not like we are heading off in a new direction,” Score said. “We are trying to get information about what impact our investment has had on neighborhoods within Hantz Woodlands. We are measuring marketplace response to the investment we made.” “The purpose of the farm, the whole mission of the investment is to create truly livable neighborhoods on the lower east side of Detroit and the farm is doing that. It’s not that the farm is for sale,” Score said. Core Partners declined comment.

KURT NAGL/CRAIN’S DETROIT BUSINESS

Crews were working last week at the to-be-demolished Joe Louis Arena to remove seats, which are being auctioned off starting at $300 a pair.

Auctioneer: ‘Thousands’ of Joe Louis Arena seats sold S

ales of the seats from to-be-demolished Joe Louis Arena have reached into the “low thousands” as of Friday after the online auction went live Tuesday. The sale is limited for now to Detroit Red Wings season ticket holders, who can request their former seats at the arena. The general public can buy seats beginning May 12, and about 16,000 seats in total are being made available ranging in price from $150 to $350. The online seat auction will be at thejoeseats.com. City-owned Joe Louis Arena was home to the Wings from 1979 until last year, when the team relocated to new Little Caesars Arena. The old arena will be razed and the site redeveloped. Detroit’s building authority hired Byron Center-based appraisal and auction firm Miedema Asset Management Group Inc. and Bloomfield

Hills-based industrial asset auctioneer Robert Levy Associates LLC to handle the direct sale of the seats and fixtures. Levy estimated that the Red Wings had about 7,000 season ticket holders eligible to buy seats. He didn’t have a specific seat sale total as of Friday morning. “Seat sales are above expectations. We’re very pleased,” Levy said. “I’m hopeful we’re going to sell them all.” Seat prices will begin at $150, and they’re sold in minimum sets of two because of the shared armrests. The season ticket holder seats available are listed at $200 for lower bowl and standard riser seats; $300 for suite and general floor-mounted seats; and $350 for premier and executive floor-mounted seats. There’s a $50 per-seat additional charge to select specific seats.