Crain's Detroit Business, Sept. 10, 2018 issue by Crain's Detroit Business

A parting word with retiring Detroit CFO John Hill Page 7

Women in Leadership: Rose Bellanca of WCC Page 14

SEPTEMBER 10 - 16, 2018 | crainsdetroit.com

MONEY-MAKING MASCOTS UM mulling EDUCATION

larger footprint in Detroit

The Detroit Lions use Roary to make new fans/customers for the team. MIKE FERDINANDE

The cute, sweaty secret weapon for pro sports teams Need to know

By Bill Shea bshea@crain.com

Professional mascot costumes cost about $5,000 and quickly wear out 

No one can get angry at Paws, right? That was the thinking when the Detroit Tigers used their beloved furry mascot in an Aug. 23 Twitter video to show fans that shipping boxes containing the giveaway replica Alan Trammell jerseys had arrived at Comerica Park in time for the new Hall of Famer’s number retirement ceremony three days later. It was a safe way for the team to let everyone know that a mistake — giveaway jerseys for Jack Morris’ number retirement two weeks prior failed to arrive on time — wouldn’t be repeated. “Something difficult happened so we wanted to have some fun with it and let our fans we know a mistake was made but wouldn’t be repeated. What better ways than Paws going through the jersey boxes?” said Ellen Hill Zeringue, who has been the

Tigers vice president of marketing for the past 10 years. The 18-second Paws video, viewed more than 15,000 times, was an example of how mascots in the digital age have evolved into a Swiss Army knife for sports teams to employ for promotions, messaging, corporate sales and loyalty building. Gone are the days when a mascot simply walked the concourse and stands, interacting with children and being goofy. Now, professional sports mascots are used in far more sophisticated ways to communicate messages,

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 Teams increasingly use mascots in social media messaging, branding  Mascots generate revenue from inclusion in corporate sales deals, merchandising

serve as brand ambassadors, generate revenue, and create lifelong fans. The Detroit Lions and Detroit Pistons this year used their mascots Roary and Hooper in a series of schedule-reveal videos to let fans know who they are playing this season — a popular trend across pro sports. The mascots also attend events with companies that advertise with the teams, participate in civic events, and are hired out for parties, weddings, etc. The characters also are important for the offseason when the players are no longer in town. “It provides us that tool that we can always reach out to the community,” Hill Zeringue said. “It’s an offseason tool to keep the brand out there. Paws becomes the 40-man roster. Paws is an important extension to remind people we are here and care, when we can’t send a player.” SEE MASCOTS, PAGE 20

MARK A. CUNNINGHAM

The Detroit Tigers’ Paws works during the season and the offseason.

FOCUS

Detroit Homecoming preps for fifth edition

G PREVIEW

NEWSPAPER

MIN DETROIT HOMECO

SEE EDUCATION, PAGE 17

INSIDE

10, 2018 // S E P T E M B E R OIT BUSINESS CRAIN’S DETR

The University of Michigan is looking to get in on Detroit’s revitalization. The university’s purchase earlier this year of the rest of the CHAD Horace H. RackLIVENGOOD ham Education Memorial Building in Midtown could give rise to a “more substantial” physical presence in Detroit for the maize-and-blue, UM President Mark Schlissel told Crain’s. Schlissel sees an opportunity to expand from UM’s tiny outpost at the Detroit Center on Woodward Avenue and make the 77-year-old Rackham building the university’s “home base” in Detroit with a yet-be-defined larger mission in Michigan’s largest city. “We’re trying to look for partners who are willing to work with us on this,” Schlissel said in an interview last week after speaking at a Detroit Economic Club luncheon. With Ford Motor Co. planning to make a $740 million investment in Corktown for a campus focused on developing electric and autonomous vehicles, the UM president suggested the university could follow suit. “It depends on how Detroit evolves,” Schlissel said. “... But in the fullness of time, for example, as Ford does its building in Corktown and perhaps GM expands its footprint in town, I can see the university playing a more substantial role physically in Detroit going forward.” As greater downtown Detroit experiences a revival, there’s a need to have more college graduates in close proximity to recruit companies to the city, said Kevin Johnson, president and CEO of the Detroit Economic Growth Corp.

<< Bill Ford Jr., Jemele Hill, Chris Ilitch among featured speakers. How to watch. Page 10 AARON ECKELS FOR CRAIN’S

last year at the Michigan

Central Train Depot. This

year, Bill Ford Jr. will speak

on Ford Motor Co.’s decision

ing Detroit Homecom marks fifth edition

Detroit Homecoming opened

By Annalise Frank afrank@crain.com

theme for “Detroit Made,” the fifth installDetroit Homecoming’s to manufacment, is not just an ode turing. s the It’s a net that encompasse Detroiorigin stories of 250 former event ters invited to the three-day being — and the next generation uniK-12 and molded here through versity education. by produced Homecoming, draws exCrain’s Detroit Business, outside Depats who found success hometown. troit back to their and a Speeches, mixers, tours Sept. showcase of local businesses

to buy and renovate the

historic but decrepit landmark.

Chris Ilitch: Jemele Hill: Mike Duggan: Ford President, CEO, Sports journalist, at a sta- Bill Ford Jr.: Mayor of city of profitability and efficiency Bar. Or Motor executive Ilitch Holdings The Undefeated Detroit tion called the Information ways to chairman they can learn more about neighcity’s to expect directly invest in the ed busi- What borhoods or women-own Here’s what to know. afternoon coming. is V Thursday a at nesses Detroit Homecoming event called Pitch A Fund. ThursSept. 12-14 When: continues om or mingling crainsdetroit.c The on event can be streamed live parties Sept. day night with 14 house How to watch: The invitation-only ’s Sept. 12; 9:30-11:30 a.m. Thursday, site Colleen Robar, Homecoming ming.com 7-9 p.m. Wednesday, expected to be on spread across the city. pairs of detroithomeco a.m. Friday, Sept. 14. WXYZ-TV (Channel 7) is production manager Also Wednesday night, 13; and 8:30-11:30 expected to chat each day, as well. rs local leaders are Jemele Hill, efforts. Detroit and CEO of Ilitch Holdings; year startups and entrepreneu Detroit about big business will take the Speaker list includes: Chris Ilitch, president Kelley Carter, president; NAACP Duggan Johnson, will mingle with the visiting Mike Derrick fair Mayor Co. Execu- sports journalist with The Undefeated; president of Harvard University; Nikolai Vitti, natives through a networking stage with Ford Motor Bacow, Ford Jr., whose journalist with ESPN; Lawrence Schools Community District; Detroit Mayor Mike called Motor City Mashup. re- tive Chairman Bill Quicken t of Detroit Public Jr.; Detroit billionaire and Created based on community led company is redeveloping Michigan superintenden Executive Chairman Bill Ford and And Detroit bil- Duggan; Ford Motor Co. CEO of StockX. search by Challenge Detroit De- Central Station. Dan Gilbert; and Josh Luber, Quicken Loans Inc. Loans Inc. Chairman by Medvis Jackson, a Challenge can be found on Detroit Gallagh- lionaire and with information for the event troit fellow, and Sheu-Jane ils: Schedule and agenda an Dan Gilbert will talk

“The expat was made in Detroit, but we also want to highlight the makers.”

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

MICHIGAN BRIEFS

INSIDE

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

State Legislature OKs minimum wage, sick time initiatives The Republican-controlled Michigan Legislature last Wednesday passed laws that would raise the state’s minimum wage to $12 an hour and require companies to offer paid sick leave — if they are not watered down before taking effect next year, the Associated Press reported. The proposed ballot initiatives could have gone before voters in November, but now they will not. Their pre-emptive passage by lawmakers is part of an unprecedented business-backed strategy — the legality of which is in question — to make them easier to alter during the “lameduck” period in November or December. If voters had passed the measures, legislators would have needed three-fourths majorities in each chamber to alter them, instead of the simple majority votes they will need now. Many Democrats voted against the bills they support, saying they do not know what changes are coming, including whether Republicans could try to repeal them altogether. State Sen. Curtis Hertel Jr., of East Lansing, called the maneuver “nothing more than a classic bait-and-switch, a trick

on the voters here in Michigan, an attack on our democracy.” The Senate voted 24-13 to pass both bills, with three Republicans and 10 Democrats in opposition. The votes were 78-28 in the House, where more Democrats joined Republicans in support. The sick time proposal would require that workers earn one hour of paid leave for every 30 hours worked. Employees at businesses with at least 10 workers could use up to 72 hours of paid leave a year, unless an employer selects a higher limit.

MSU receives biggest-ever gift

Michigan State University has received the largest single donation in its history, a $30 million gift from real estate investor Edward Minskoff toward construction of the Business Pavilion

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at the Eli Broad College of Business. In recognition of the gift, interim President John Engler will recommend to the MSU Board of Trustees that the pavilion be named after Minskoff, a 1962 alum of the university. The university announced the

donation last Thursday. The $60 million pavilion, an extension of the Eppley Center that houses the business school, is being funded by MSU’s Empower Extraordinary campaign. The 100,000-square-foot structure will feature collaborative learning

spaces, state-of-the-art education technologies and an expanded career center, a news release said. A glasswalled atrium will give students, faculty and visitors a panoramic view of the Red Cedar River from the building that is expected to open in fall 2019. “Michigan State is an important university and important to my past. It gave me a strong foundation, so I am privileged to be making a contribution that will help Michigan State continue to attract and prepare future business leaders,” Minskoff said in a news release.

Little Caesars Arena. JJThe 40 Under 40 profile of Tamira Chapman included an incorrect figure as an example of the amount of money a nonprofit organization had raised using Storehouse LLC’s services. Storehouse has raised $500,000 total for nonprofits over the past 12 months, not for a single nonprofit. JJThe 40 Under 40 profile of Jeff Glover included an incorrect loca-

tion for the offices of Coldwell Banker Schweitzer. The office is in Plymouth. JJThe 40 Under 40 profile of Sri Maddipati incorrectly stated his age — Maddipati is 35 — and his tenure at Goldman Sachs, which was 7 years. It also incorrectly stated where Consumers Energy is based. The company is based in Jackson. The sustainability-linked financing that

we implied would become effective next year went into effect in June 2018. JJA profile of Kevin Roach included an incorrect age. He is 36. JJThe profile of Kerry Duggan incorrectly stated that Duggan had been selected to lead President Barack Obama’s Detroit task force in 2011. Duggan led the task force as a deputy.

MICHIGAN STATE UNIVERSITY

Michigan State University is building a 100,000-square-foot business pavilion as an extension of the business college on its East Lansing campus. It could be named after Edward Minskoff who on Thursday donated $30 million toward the facility.

CORRECTIONS JJA 40 Under 40 profile of Vijay Virupannavar in the Sept. 3 issue incorrectly described Virupannavar’s role in the financial operations at Little Caesars Arena. Virupannavar did not create the arena’s financial tracking and reporting; working for Olympia Entertainment and Events Center, which oversees arena operations, Virupannavar created the general ledger and historical accounting for

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SPORTS BUSINESS

Lions confront balancing act of talent By Bill Shea bshea@crain.com

Like any business, the Detroit Lions are in a perpetual quest for talent. Labor is the team’s largest expense, and its football players determine — with help or hindrance from coaches — the Lions’ on-field success. But unlike most other businesses, the Lions and the 31 other National Football League teams get a chance to improve their workforce with an annual draft of the nation’s elite college players in addition to hiring free agents off the street. And they do it with millions of people watching their every move. The risk for the Lions when it comes to talent acquisition is similar to other business: Fail to get the right people and the fallout is costly. Draft players who blossom as professionals, and a team should win more games. Miss on those draft picks and misfire on free agents, and you end up with an roster of duds, more losses than wins, dwindling crowds, and end-

Need to know

 General Manager Bob Quinn is entering his third season  Lions’ spending mirror New England Patriots in some ways  Talent acquisition philosophy contingent upon each season

less ridicule from fans and pundits. The Lions have fallen largely into that latter category, but the current front office regime is laboring to change that with a talent acquisition philosophy that appears to mirror the NFL’s most success franchise of the past generation, the New England Patriots. Detroit goes into its third season under General Manager Bob Quinn, a former Patriots executive and the man ultimately responsible for assembling the roster, on Monday night at Ford Field against the New York Jets. The Lions are coming off 9-7 records in both of Quinn’s first two seasons.

Detroit Lions quarterback Matthew Stafford (9) gets set to run a play against New York Giants during an NFL football game at Ford Field in Detroit, Aug. 8.

SEE LIONS, PAGE 21

RICK OSENTOSKI VIA AP IMAGES

NONPROFITS

Sphinx’s Dworkin launches ‘sharing’ exchange By Sherri Welch swelch@crain.com

Sphinx Organization founder Aaron Dworkin is looking to turn creatives’ talents into currency they can trade for goods and services. He’s launched ArtsShare, a barter site for creatives and others looking to tap their services. ArtsShare is Dworkin’s entry into the sharing economy that birthed sites including Airbnb and Uber and a variation on GigSalad, an online marketplace for booking bands, musicians, entertainers, speakers and services for parties, productions and other events, he said. “There are so many artists that

Need to know

 ArtsShare gives creatives free platform to offer their talents in exchange for housing, meals, transportation and other needed things  Less than a month after its launch, it’s attracted aboroughly 200 registered users, 100 posts

have this artistic value … that’s underutilized because they don’t have the audience or platform to bring it forth.” At the same time, creatives have needs they can meet by offering their talents. “Creatives” include visual

and performing artists, designers, architects and others. “I really see this as an investment in our field,” Dworkin said. Less than a month after its launch, the site had attracted roughly 200 registered users and 100 posts by late last week, from people not only in Metro Detroit but in other parts of the country, Dworkin said. That’s a testament to the power of his social media networks, which he used to spread the word. The free ArtsShare site (artsshare. com) gives creatives a platform to offer their talents and services in exchange for everything from housing and studio space to meals, transpor-

tation, performance opportunities and costs. Users sign up and either post something they are offering or search the posts already there by keyword or broad categories such as music, fashion, crafts, magic and architecture. One user is offering a cigar box folk guitar in exchange for lessons on how to play the three-string blues. Another offers use of the Westhampton Beach Performing Arts Center, a 425seat venue located about 90 minutes west of Manhattan, in exchange for “exciting new musical and stage works ready for New York production.”

MUST READS OF THE WEEK United Road names new CEO Truck hauler’s President Mark Anderson gets promoted as Kathleen McCann becomes executive chairman. Page 6

SEE WEBSITE, PAGE 18

Q&A

Dow chief, NAM leader talk about trade, tariffs By Dustin Walsh dwalsh@crain.com

U.S. manufacturing activity hit a 14year high in August, according to the Institute of Supply Management Manufacturing Purchasing Managers Index published last week. The index measures employment, production, inventories, new orders and supplier deliveries to determine the growth rate of the sector. The index jumped to 61.3 in August from 58.1 in July. A value above 50 indicates an expanding sector. The strong economy, buoyed by the Tax Cuts and Jobs Act of 2017, hasn’t, however, erased uncertainty out of Washington, D.C., that is leaving man-

Jim Fitterling

Jay Timmons

ufacturers struggling to plan and forecast. Jim Fitterling, CEO of Midland-based DowDupont Inc., and Jay Timmons, CEO of Washington, D.C.,based industry group National Associ-

ation of Manufacturers, attended a private NAM event last week at the Townsend Hotel in Birmingham to discuss some of the positive movements of manufacturing and the policy problems the industry continues to face. Senior Reporter Dustin Walsh sat with the executives following the meeting for a 30-minute interview on trade, tariffs, immigration and the future of manufacturing in the U.S. Responses have been edited for clarity and brevity. You’ve both publicly discussed the importance of immigration for

economic and manufacturing sector growth. Has that changed since the current administration is reducing paths to legal and illegal immigration?

Fitterling: It is critical as a multinational company to have the ability to move people around to learn the business. We have to fight on several fronts (with immigration). H-1Bs (visas for educated foreign workers in specialized fields; Dow is a large sponsor of these visas) used to be the main focus of the business world … it’s not the only focus anymore. We have to look at legal paths. Paths to legalization of people who are here in the workforce already. SEE TRADE, PAGE 19

Auburn Hills company adds Mexico plant Auto supplier TSM expands south of the border as all eyes are on NAFTA . Page 13

Beaumont outpatient centers expand System plans new locations in Wayne, Macomb counties. Page 13

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Detroit council member wants lower community benefits threshold By Kirk Pinho

kpinho@crain.com

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A Detroit City Council member is asking her colleagues to consider lowering the investment threshold for large-scale projects that trigger the community benefits agreement process for developments in the city receiving public financing or property. Mary Sheffield, the president pro tempore, said she anticipates it would take several weeks for her and her council colleagues to mull whether to establish a new lower threshold from the $75 million that currently exists for socalled tier-one projects. She and others have publicly discussed a $50 million trigger, but she said she Mary Sheffield: is open to other Wants to lower figures as well. threshold â&#x20AC;&#x153;I have talked to some individuals in the business and development community and heard from a couple who agree the threshold should be lower,â&#x20AC;? Sheffield said. â&#x20AC;&#x153;They probably wouldnâ&#x20AC;&#x2122;t publicly say that, but they said that the threshold should be lowered. Fifty may not be the right number, but this starts the conversation.â&#x20AC;? She said the threshold is too high because she has â&#x20AC;&#x153;seen how communities and neighborhoods have been left behind.â&#x20AC;? Lowering the threshold would mean that more development projects would be subject to the tier-one community benefits process, which was passed by Detroit voters in November 2016 and enacted Jan. 1, 2017. The council had to wait a year before amending it. Proposal B, as it was called then, was viewed in the real estate community as less onerous because it required a much higher investment to set in motion the tier-one project provisions than Proposal A, which had a $15 million threshold. It requires community benefits agreements for $75 million and up developments that receive $1 million or more in public incentives or which are situated on public property with a cumulative market value of $1 million or more that was sold or transfered to a developer. For those projects, it requires the establishment of a Neighborhood Advisory Council, the majority of the members of which are appointed by city officials, and at least one public NAC meeting and a community benefits report outlining the benefits to be provided to the surrounding community. Sheffield is also floating raising the minimum number of meetings to five, as well as changing the name of the law to the Community Engagement Ordinance. â&#x20AC;&#x153;These are just suggestions to allow the council and development community to react,â&#x20AC;? she said. Her district includes busy neighborhoods like the New Center area, Midtown, Eastern Market, Brush Park and portions of the central business district. Council member Raquel CastaĂąeda-LĂłpez, whose district includes southwest Detroit,

ROSSETTI

A rendering shows the Detroit Pistons practice facility in the New Center area. The Neighborhood Advisory Committee negotiated a donation of $100,000 annually for six years to Grow Detroitâ&#x20AC;&#x2122;s Young Talent with the project.

Need to know

JJ Community benefits agreement was

passed by Detroit voters, enacted Jan. 1, 2017 JJ Requires neighborhood council, report of benefits to surrounding area JJ Six projects totaling an expected $2.36 billion in investment have completed process

Corktown, the District Detroit development area and the western portion of downtown, has also advocated for a stricter community benefits ordinance, including lowering the investment threshold.

6 projects have completed process So far, six projects totaling an expected $2.36 billion in investment have completed the community benefits process, according to Mayor Mike Dugganâ&#x20AC;&#x2122;s administration. There are $87.5 million in property tax abatements for those projects, while the city anticipates $296.5 million in net income taxes in return over the lifetime of those incentives. For example, while Dan Gilbert will receive close to $7 million in property tax abatements over the lifetime of Detroitâ&#x20AC;&#x2122;s incentive to redevelop the former Detroit Free Press headquarters building, the workers redeveloping it and those people living and working in it after it is completed will pay about $16.1 million in city income taxes, meaning that the city stands to gain $9.1 million. The city also says that the project sites generated just $81,000 in property taxes before their redevelopments, while after the property tax abatement ends, they will generate a total of $11.24 million the first year after those tax breaks end. Alexis Wiley, chief of staff to Duggan, said the administration is â&#x20AC;&#x153;following throughâ&#x20AC;? on implementing the will of the voters. According to the Duggan administration, many benefits have been negotiated by neighborhood advisory councils, including affordable apartments at the Wigle Recreation Center redevelopment on the western edge of Midtown that are substantially more affordable than were originally proposed, and at the Lafayette West development,

where window cleaning of adjacent buildings being paid for by the developer. With the under-construction Detroit Pistons practice facility in the New Center area, the NAC negotiated a donation of $100,000 annually for six years to Grow Detroitâ&#x20AC;&#x2122;s Young Talent, the administration says.

â&#x20AC;&#x2DC;Development is still happeningâ&#x20AC;&#x2122; Mike Ferlito, president of Detroit-based developer Ferlito Group, is concerned about the lower investment threshold slowing job creation in the city. â&#x20AC;&#x153;The only reason for it being a big deal is for an industrial or office user bringing in a huge number of jobs but getting slowed up a year,â&#x20AC;? he said. â&#x20AC;&#x153;I know very large organizations that are scared to death about these things and that theyâ&#x20AC;&#x2122;ll be ran through the wringer.â&#x20AC;? Arthur Jemison, Detroitâ&#x20AC;&#x2122;s chief of services and infrastructure who moved into that job after several years working on affordable housing, said development hasnâ&#x20AC;&#x2122;t slowed down since implementation of the ordinance. â&#x20AC;&#x153;Development is still happening,â&#x20AC;? he said. â&#x20AC;&#x153;Work is getting done and the communityâ&#x20AC;&#x2122;s voice is getting heard.â&#x20AC;? And Clifford Brown, who heads up Detroit-based Woodborn Partners LLC, which is working on several developments in the city, including a $300 million-plus joint-venture with Gilbertâ&#x20AC;&#x2122;s Bedrock LLC on the former site of the Brewster-Douglass housing projects, is waiting to see what the changes will be and how they will be rolled out. He isnâ&#x20AC;&#x2122;t concerned about lowering the threshold â&#x20AC;&#x153;if implemented correctly, and you have reasonable people on all sides who are truly working to ensure that everybodyâ&#x20AC;&#x2122;s needs are met.â&#x20AC;? â&#x20AC;&#x153;Lowering the CBO in terms of dollar amount wouldnâ&#x20AC;&#x2122;t impact Woodborn one bit because a lot of what they ask developers to do, we do anyway,â&#x20AC;? he said. â&#x20AC;&#x153;The fear or the challenge is if you have unreasonable people. I think thatâ&#x20AC;&#x2122;s the big concern.â&#x20AC;? Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

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Detroit Wayne Mental Health Authority takes next step in consolidating ‘middle men’ We are just expanding what we have done. Instead of duplicated claims processing and rules, we will do it all.”

Need to know

By Jay Greene jgreene@crain.com

Authority takes next step to eliminate bureaucracy by moving to phase out three managed care provider networks to save $7 million J

The Detroit Wayne Mental Health Authority is moving at a faster pace to save $7 million in administrative costs by eliminating three managed care provider network organizations by Oct. 1, a fourth by Dec. 31 and by bringing in-house provider contracting for its 80,000 clients. DWMHA offered to extend by six months the contracts of CareLink Network and ConsumerLink Network until April 1, but the MCPNs notified the authority that they would end their relationship when their contracts expire on Sept. 30. Officials for CareLink and ConsumerLink did not return phone calls for comment. “They rejected the extension and didn’t give us an explanation,” said Willie Brooks, CEO of DWMHA. “Our plan was to absorb those positions, and we are doing that. It makes a whole lot of sense to do this to serve the people and not be reliant on a third party. There won’t be any difference to providers because we were going to take over that (administra-

J At least 50 employees of the three MCPNs and others will be hired by the authority J A fourth MCPN will stay on until Dec. 31 and possibly longer

tive) process anyway.” Brooks said the authority has already hired 50 workers to take on the contracts of Integrated Care Alliance Inc., CareLink Network and CommunityLink Network. The MCPN contract with Community Living Services Inc. will end Dec. 31, but CLS will continue on as a provider agency with the authority. Jim Dehem, CEO of Community Living, told Crain’s that DWMHA asked the behavioral health agency to submit a contract proposal for next year. He said CLS has not received a response yet from the authority.

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

Willie Brooks

DWMHA employs about 250 and in 2019 will increase its budget to about $770 million from $750 million this year. Crain’s reported June 14 that DWMHA would phase out contracts with the four MCPNs, which contract with behavioral health providers and direct care workers. Brooks said he continued the process to consolidate administrative layers that was begun by former CEO Tom Watkins before he stepped down last year. “They knew this was coming. We are only completing the process that Tom started and couldn’t get it done at the time,” he said. Several sources affiliated with some of the four MCPNs complained to Crain’s about the process the authority took to decide which companies it would keep going forward. “We followed federal rules that gave us the opportunity to do this. We informed the (Michigan) Department of Health and Human Services and the department was fully aware and supportive of what we did,” Brooks said.

“We didn’t end any contracts. We allowed the contracts to expire. Most knew what was going on.” Brooks said the authority’s two concerns are that clients have no interruption of services and that providers get paid without delay. “It won’t be difficult to take over the contracts because we do that now,” Brooks said. “We pay providers; they pay providers; we managed some care, and they manage some care. We are just expanding what we have done. Instead of duplicated claims processing and rules, we will do it all.” Brooks said he has met with the eight largest provider agencies, known as the “elite 8” because of their size and range of services, to discuss expanding and coordinating services. They are Neighborhood Service Organization, North East Guidance Center, TEAM, Detroit Central Cities, Southwest Solutions, Community Living Services, Lincoln Behavioral Health and The Guidance Center. “We talked with them about pro-

viding holistic care. That is behavioral health, physical health, economic support, spiritual and housing. We would like providers doing all five of those, maybe not completely, but any provider that has the ability to do that, we’d like them to do.” Brooks said DWMHA also contracts with more than 300 other smaller, specialty providers that offer limited services in one or two holistic areas. “We have different categories of providers. We don’t want to eliminate (providers), but we would like some consistency in the network so there isn’t a huge variance for our clients” when they seek care, said Brooks, adding that he and his staff have been holding private and public meetings to explain the changes and new direction of the authority. Brooks also said the authority is making progress in selecting up to three crisis centers to offer needed services in Wayne County for clients. “Once we make the change in our MCPNs, we will be able to put our full attention on crisis care, the correction system and doing something more with integrated care” of physical and behavioral health, Brooks said. “I’d like to see three crisis centers in Wayne County. We’d like to build out a center like Common Ground” has in Oakland County. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

United Road names new CEO; McCann to become executive chairman By Tyler Clifford tclifford@crain.com

Kathleen McCann is turning over the CEO job at United Road Services Inc. and will become executive chairman of the vehicle hauler at the beginning of next year. Romulus-based United Road’s President and COO Mark Anderson will take over as president and CEO, and United Road plans to seek a new COO. McCann will focus on the company’s strategic direction in her new role. The changes are set to take effect Jan. 1. “This is a natural transition for the company at a pivotal time in our history,” McCann said in a news release. “United Road has a diverse and growing customer base. We have been fortunate to achieve thoughtful growth through an unflagging commitment to excellence. Mark has the passion and experience to take the reins in 2019, enabling me as executive chairman to focus on strategy.” Under the leadership of McCann, 58, United Road has doubled in size

Need to know

JJKathleen McCann to focus on United

Road strategy

JJMark Anderson will take over CEO role, maintaining role as president JJTransitions go into effect Jan. 1

Kathleen McCann: Named Executive chair

Mark Anderson: Named president and CEO

by boosting its carrier network and patented technology since arriving in 2011. She was named one of Crain's Most Influential Women that year as she focused on investing $50 million into the company’s fleet, expanding into new markets and acquiring

firms. The company serves 10,000 customers and projects to transport 3.5 million new and used vehicles across the U.S. and Canada this year. General Motors Co. is one of its top clients. United Road was acquired just more than a year ago by private equity giant The Carlyle Group L.P., based in Washington, D.C. “My role as executive chairman will be to drive United Road’s strategic vision and support Mark and his very capable team achieve even more success in the future,” McCann said in a written statement. McCann called Anderson, 53, an “able leader” who spearheaded United Road’s service network expansion, discovered operational efficiencies and secured new business. He became COO in 2014 and added the president title in 2016. He holds more than 25 years of experience in leading logistics businesses. United Road was founded in 1998. The company now has 1,700 employees and 1,900 owned and contracted vehicle carriers, the release said.

Help Crain’s salute 40s and 20s winners gvsu.edu/SupportLakerEffect

Crain’s Detroit Business will salute the next generation of business and civic leaders at a dinner event in November. The Celebration of Crain’s Forty Under 40 and Twenty In Their 20s

will run 6-9:30 p.m. Nov. 15 at the Roostertail in Detroit. Tickets are $150 for individuals, $140 for groups of 10 or more or for Forty under 40 and Twenty in their 20s alumni, and $105 for young

professionals ages 21-35. Crain’s Members receive a discount on admission when purchasing admission. To register or for more information, go to crainsdetroit.com.

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Q&A

John Hill on city’s financial turnaround, fiscal discipline and what’s next By Chad Livengood clivengood@crain.com

John Hill, one of the architects of the city of Detroit’s financial turnaround, announced last week that he’ll leave Mayor Mike Duggan’s administration in December after five years as the city’s CFO. Hill is credited with imposing the fiscal discipline at City Hall that led to three consecutive years of budget surpluses and Detroit’s ability to shed state financial oversight just three years after emerging from bankruptcy. As CFO, Hill oversaw the centralization of financial services for all city agencies under his department's purview, resulting in the hiring or rehiring of 450 employees who handle procurement, tax collections, budgeting and accounting for all city departments. Prior to Hill's arrival in late 2013, accounting and budgeting was done internally in each city department, resulting in uneven controls over municipal finances that culminated in Detroit's July 2013 bankruptcy declaration. Hill talked with Crain’s Detroit Business last week about his tenure in Detroit city government and what’s next after a long career in government finance. The following transcript has been edited for clarity and space: CDB: At age 64, what’s next for you? Hill: I haven’t really decided what I’m

going to do next. ... I certainly want to spend a lot more time with my granddaughter, who is now 2 years old. But in terms of the next challenge, I certainly have nothing locked in or identified that I’m pursuing at this point. It’s been five years, and it’s been quite a lot of work, and I think the city is in a position where it certainly could have a transition to another financial leader — and be in a position to do that fairly well. Why did you come to Detroit? What was the motivation to come work in a bankrupt city?

The first project I came to work in Detroit on, I was part of a team that was implementing a new grants management system for the city. It was relatively small project. And I was here when the previous CFO kind of made some comments in public that he ended up (resigning over) seven days after those comments were made.

“The first year was really trying to get some sense for what the financial operations look like and what the real numbers were. It was really very difficult.” John Hill

knagl@crain.com

Longtime Michigan Department of Transportation Director Kirk Steudle is retiring after 31 years with the department. Steudle, who has been MDOT’s director for almost 13 years, will step down Oct. 31, according to a Friday news release from Gov. Rick Snyder’s office. “My entire professional career has been spent at MDOT,” Steudle said in a written statement. “It has been especially rewarding to have Gov. Snyder’s support to address a decades-long transportation funding shortage. I hope to leave MDOT with

COM M U N IT Y We travel your roads and live on your streets so we know well what is important to your community. Local knowledge and personal understanding –

And Kevyn Orr was aware of the work I had done with the Washington, D.C., control board back in the mid-’90s, and I knew that I understood troubled cities and how to help repair them. He asked me if I would step in temporarily and be the CFO. I thought I would for a year. And then one year turned into two, and three, and four and now five (years). ... (What) kept me here was having an opportunity to work with Mayor Duggan, who I think has just been amazing leader for the city — and also someone I’ve learned a lot from. He provided me with really unabridged support for all of the things we had to do that were really tough things to do. What were the tougher things to do in that initial first year or two?

The first year was really trying to get some sense for what the financial operations look like and what the real numbers were. It was really very difficult. ... It was really a lot of making sure that I fully understood all of the issues that needed to be addressed — and then putting together a plan, strategies and a team to be able to address those issues. How important was having the right team in place for you?

It was absolutely critical. I have a chief-of-staff in John Hageman who worked with me on that (grants management) project that we did initially — that was the first I had ever met him. It was clear from the very beginning that we could work very well together. So he kind of accepted this challenge with me. ... It was absolutely critical to get people who could not be bound by the past, but kind of look at where we needed to be in the future. What are some of the more critical areas where you think you’ve made a difference in your time here?

The financial management system, having that implemented, was a major plus. (Chief Information Officer) Beth Niblock was instrumental in

helping to do that, from a systems standpoint. My team was instrumental in not just putting in a new system, but putting in policies and procedures ... that incorporated all of the controls that were resident in the new system. John Hageman was the one who really led much of that effort in the policies and procedures area. ... When we got here, we had policies going back to as early as the 1970s that had never been changed or never been looked at since then. There was a lot of catch-up work that had to be done. And then hiring some 450 staff in a very short period of time all into brand-new jobs, orientating them, training them and getting them to work together as a high-performing team was another one of the challenges we were facing in those early days. Tax collections in Detroit were notoriously not good. In the prior administrations, you had delinquency rates of 50 percent on property tax payments. How has your department improved that?

There was a huge backlog of (tax) returns that we needed to review and to audit — and that has certainly been work over the years. Then we wanted to give the city an opportunity to really concentrate on enforcement. We have an agreement with the state to have the state (Treasury Department) do the processing of our returns so we can concentrate on compliance. ... One of the things that actually helped improve our compliance of property tax was to make sure there was a fair assessment of those taxes. ... It’s amazing: When people believe their assessments are fair, they are definitely more likely to pay those assessments. We had some pretty high-profile cases where we’ve taken people to court over taxes, and that helps with compliance. I’d say there’s been an amazing improvement in the professionalism of our income tax and property tax area. Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

MDOT chief Steudle to retire after 31 years By Kurt Nagl

CONNECTION TO

a legacy of collegiality, collaboration, and partnership that shows what we can accomplish when we all work together.” Snyder has not decided on an inKirk Steudle: terim or permaLeaving position nent replaceon Oct. 31. ment for the post. Mark Van Port Fleet is MDOT's deputy director. Steudle stepped in as interim president and CEO of the American Center for Mobility in Ypsilanti last

month following the departure of its top executive, John Maddox. Steudle led the state's involvement in the ACM since it opened to partners in 2017. MDOT spokesman Jeff Cranson said Steudle will remain in his temporary post at ACM until a permanent replacement is named. As far as life after MDOT, Steudle has not said much. “I expect at some point he’ll do something else, but right now all he’s saying is that he is retiring,” Cranson said. Steudle was at a conference at press time Friday and unavailable for comment, Cranson said.

it’s all connected.

FISHBECK , THOMPSON, CARR & HUBER engineers | scientists | architects | constructors

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OPINION EDITORIAL

Treat higher ed as critical infrastructure

ichigan’s employers and its economy depend on a healthy production line of talent. Improving that production line needs to be a bigger priority. Last week, the presidents of the University of Michigan, Michigan State University and Wayne State University made their case in front of the Detroit Economic Club that a new, comprehensive higher education strategy for the state is long overdue. They couldn’t be more correct. Healthy universities are part of the infrastructure of a successful state as much as roads are. And Michigan is lagging. Funding for higher education has been rising gradually the past few years after steep declines under Gov. Jennifer Granholm and early in Gov. Rick Snyder’s tenure. But at $1.66 billion for next fiscal year, it’s still far below the $1.94 billion it was at the peak in 2002. And that’s ignoring inflation. Colleges have made up the difference mainly by raising tuition. But that Band-Aid is stretching to its limits as backlash grows against the cost of college and the debt that students are taking on that hamstrings their own financial futures. The decline in state subsidies for public universities is a national phenomenon. That provides an opportunity to set Michigan apart by bucking the trend. Going with the herd isn’t going to improve Michigan’s standing. But money isn’t the only thing in the equation of a successful higher-education strategy for Michigan. The state needs to grapple with other issues: JJWhat kinds of graduates does the state need and what are innovative ways to encourage students to pursue those fields? JJHow can we strengthen community colleges, which offer affordable education and help create pathways to skilled, technical jobs? JJHow can the state improve the creation of next-generation businesses through tech transfer? Despite enjoying a concentration of major research universities, Michigan isn’t nearly as recognized for business spinoffs as, say, Stanford University or North Carolina’s Research Triangle. JJWhat other ways are there to encourage more young people to pursue degrees? As the university presidents pointed out, neither candidate for governor has talked much about higher education strategy. That needs to change. The business community can raise its voice to help drive that change. Michigan’s universities are one of its greatest strengths, an economic engine that pays dividends at every level of the economy. A comprehensive strategy for strengthening those contributions and improving access to higher education is one of the best investments the citizens of Michigan can make.

It is a simple idea that is 5 years old

was having lunch with my good friend Jim Hayes, who I first knew when he ran the Detroit office for Sports Illustrated before he went on to big things at Time Inc., retiring as publisher of Fortune magazine. He had an idea, a very good idea, that we, Crain’s, should have an event that would invite back to Detroit many of the folks who were born and raised here, but left to earn their fame and fortune somewhere else. Let them realize just what has been going on the past decade or so, show them opportunities in their hometown. It was a great idea — one that no one was even thinking about — so we headed back to Crain offices and discussed this a little more. I was convinced that a bunch of expats would be excited to have a chance to rediscover Detroit.

KEITH CRAIN Editor-in-chief

The deal was done, and it was obvious that Crain’s Detroit Business was the perfect vehicle to run such an enterprise. We called in the publisher of Crain’s, Mary Kramer, and told her about our latest project. She was on board immediately, and Detroit Homecoming was off and running. Five years later, it is still going strong, and Jim Hayes and Mary

Kramer are still at the helm. It has the same purpose: bringing expats back to see the remarkable progress that is going on in our city and discover the opportunities for investment that are available. It is a very busy couple of days, and it is always fun to see the surprise and pleasure on folks’ faces as they rediscover Detroit. The very diverse agenda has something for everyone, from business to culture. Even after five years, it is still exciting to watch and listen. We all owe Jim Hayes a great debt. And I am pleased to say we still have our lunches and are hatching new ideas for the future. Jim is one guy I am glad returned to Detroit. There are still plenty of things to do. As my friend Roger Penske would say, there is still plenty of runway left.

TALK ON THE WEB LETTERS

Profile tells me all I need to know

To the Editor: The Forty Under 40 profile of Haley Stevens and Lena Epstein told me everything I needed to know about these two women and which one now has the edge to get my vote. Haley Stevens has never worked in the private sector, and from the story, has always been in some sort of government job. Lena Epstein

sounds to have grown up in a family owned and -operated private business and faced many of the same challenges that those of us who work for a living face every day. Given the facts in the story, I believe that for the working people, Lena Epstein would be someone who knows what they need and will work to get things done and moving in Congress. Jeffrey Scott Troy

On incentives to lure events

If far more than half of the states have some sort of incentive to attract events which bring attention, desirability and tax revenue to the state than Michigan would be putting it's head in the sand (yet again) to ignore such a thing. E.M. Parmelee

On Richard DeVos

Amway was controversial in some ways, but it introduced the concept of being in business for yourself to thousands of folks. (Richard) DeVos

was a part of that, he cleaned up by improving on a great business model, and gave back to society much of his wealth. RIP. Diecuts

On $12 minimum wage

Brilliant move, they will be able to strip out the garbage in these initiatives that would crush restaurant owners and servers. People need to dig into this, it is driven by out of state interests and will only hurt people's ability to make money. Great news from Lansing! ADA3

Funny ... I thought the Trump Party (the party formerly known as Republican) was all in for a $16 minimum wage ... at least in Mexico ... in factories? But not in Michigan? How does that work? Michigan Guy

On Michigan priorities

Higher education shouldn't be the highest priority for the next governor of this state. Roads, Flint water crisis, and insurance redlining are among the top priorities in this state. Avatar

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Nonprofits offered training on how to reach donors better By Sherri Welch swelch@crain.com

Last year, the bulk of all charitable giving in the U.S., or about 70 percent of the $410 billion donated, came from individuals, according to Giving USA. Here in Detroit, the picture is quite different, with nonprofits more heavily dependent on foundation support than other parts of the country, said Terry Axelrod, founder and CEO of Seattle-based nonprofit fundraising consultant Benevon. That’s no secret; local nonprofit fundraising consultants have been saying for years that nonprofits need Terry Axelrod: to work harder to Opportunity for forge relationlocal nonprofits. ships with individual donors who bring opportunities for long-term engagement and support. It’s a dynamic that presents huge opportunity for local nonprofits, Axelrod said. “Given the vast individual resources in Detroit nowadays, there really is the potential for nonprofits to develop and grow an individual major gifts program,” she said.

Need to know

Detroit native Terry Axelrod will bring her Benevon fundraising method home next week 

 Two-hour seminar will provide an educational overview of process  Company has worked with at least 50 Michigan nonprofits since its founding 22 years ago

Axelrod said she hears so much about Detroit from her Seattle base and as she’s traveling around the country to consult with nonprofits and train them in the Benevon Model for Sustainable Funding. “To be able to be able to make any

impact on the sustainability of nonprofits here (in Detroit) is very important to me,” she said. “We have a proven model. ... the nonprofits we work with (6,000 and counting) have raised over $1 billion using this method. It’s not just an experiment.” A Detroit native, Axelrod will be in town next week for the fifth annual Detroit Homecoming event for expats. She’s bringing her Benevon fundraising method back to Detroit as well with a free introductory training at the Dearborn Inn on Sept. 12. Registration is required. The two-hour seminar will pro-

vide an overview of Benevon’s process for engaging and developing relationships with individual donors for unrestricted gifts. The model incorporates techniques of mission storytelling and approaches individual giving as a way to diversify an organization’s funding streams, Axelrod said. During the 2015 Detroit Homecoming event, she announced that Benevon would move its Midwest trainings from Chicago to Detroit. It’s now doing three trainings a year here. The company has worked with at least 50 Michigan nonprofits since its founding 22 years ago, she said. They

include: YMCA of Metropolitan Detroit, Michigan Science Center, University Preparatory Academy, Cody Rouge Community Action Alliance, Community Health and Social Services Center, Oakland Integrated Healthcare Network, Common Ground and Oakland Family Services and other groups in Lansing, Midland, Grand Rapids and Traverse City. The Benevon training, which costs about $20,000, is a yearlong process. The average group raises about $240,000 the first year in unrestricted funding, including pledges, Axelrod said. “And they build a pipeline of major donors,” she said.

$1.1M federal grant awarded to help local manufacturers hurt by imports By Kurt Nagl knagl@crain.com

The U.S. Department of Commerce is issuing the University of Michigan a $1.1 million grant to be used for helping manufacturers that have been hurt by imports. The money will go to the Great Lakes Trade Adjustment Assistance Center, which is a federally funded nonprofit that is part of the Ann Arbor-based university’s Economic Growth Institute. The grant to UM is part of $13 million in Economic Development Administration grants for the same purpose being awarded to 11 trade adjustment assistance centers around the country, according to a Wednesday news release from the department. “This program is just one element of a vast, government-wide effort to restore jobs, strengthen domestic manufacturing and ensure free, fair and reciprocal trade,” said Secretary of Commerce Wilbur Ross in a written statement. Established in 1983, the Great Lakes center assists small local companies negatively impacted by foreign competition, and it “addresses the downside of free trade without the use of tariffs, duties or other trade barriers,” according to its website. It provides technical assistance, planning and analysis to help make small firms more competitive.

FROM PRESS RELEASE TO HEADLINES:

HOW TO MAKE YOUR NEWS STICK Members are invited to join us for the next installment of our

SPEAKERS:

Amy Elliott Bragg

Special Projects Editor Crain’s Detroit Business

CRAIN’S DETROIT MEMBERSHIP WEBINARS

The media can be a great way to get the word out about your business, but it can be tricky to navigate the waters. In this webinar, Crain’s newsroom leaders will offer guidance about what they look for in a story, what to do and what not to do if you’re looking for coverage, and other tricks of the trade when pitching stories to Crain’s and other media organizations.

Michael Lee

Managing Editor Crain’s Detroit Business

Tuesday, Sept. 18 @ 1 p.m.

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DETROIT HOMECOMING PREVIEW

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Detroit Homecoming opened last year at the Michigan Central Train Depot. This year, Bill Ford Jr. will speak on Ford Motor Co.’s decision to buy and renovate the historic but decrepit landmark.

AARON ECKELS FOR CRAIN’S

Detroit Homecoming marks fifth edition By Annalise Frank afrank@crain.com

“Detroit Made,” the theme for Detroit Homecoming’s fifth installment, is not just an ode to manufacturing. It’s a net that encompasses the origin stories of 250 former Detroiters invited to the three-day event — and the next generation being molded here through K-12 and university education. Homecoming, produced by Crain’s Detroit Business, draws expats who found success outside Detroit back to their hometown. Speeches, mixers, tours and a showcase of local businesses Sept. 12-14 will invite the attendees to re-engage with the community — and consider investing. A total of 400 expat and local guests are expected. “The expat was made in Detroit, but we also want to highlight the makers,” said Colleen Robar, Homecoming’s production manager. Organizers previously held an annual pitch competition, but this

“The expat was made in Detroit, but we also want to highlight the makers.” Colleen Robar, Homecoming’s production manager

year startups and entrepreneurs will mingle with the visiting Detroit natives through a networking fair called Motor City Mashup. Created based on community research by Challenge Detroit and led by Medvis Jackson, a Challenge Detroit fellow, and Sheu-Jane Gallagher, an experienced startup coach, Motor City Mashup will bring 50 small businesses to the Lexus Velodrome Thursday, Sept. 13. Many will set up around the circular indoor cycling track in booths, displaying signs showing what kind of advice they may need from industry experts. Attendees can also sign up for shifts to give advice on company

profitability and efficiency at a station called the Information Bar. Or they can learn more about ways to directly invest in the city’s neighborhoods or women-owned businesses at a Thursday afternoon event called Pitch A Fund. The mingling continues Thursday night with 14 house parties spread across the city. Also Wednesday night, pairs of local leaders are expected to chat about big business efforts. Detroit Mayor Mike Duggan will take the stage with Ford Motor Co. Executive Chairman Bill Ford Jr., whose company is redeveloping Michigan Central Station. And Detroit billionaire and Quicken Loans Inc. Chairman Dan Gilbert will talk with Josh Luber, CEO of StockX, the Gilbert-owned stock market of things. Friday will round out the threeday networking spree with chats, panels and speeches on education. Detroit Public Schools Community District Superintendent Nikolai Vitti will speak on Detroit’s Education Report Card and other break-outs will focus on keeping talent in

Bill Ford Jr.: Ford Motor executive chairman

Mike Duggan: Mayor of city of Detroit

Jemele Hill: Sports journalist, The Undefeated

Chris Ilitch: President, CEO, Ilitch Holdings

What to expect Detroit Homecoming V is coming. Here’s what to know. When: Sept. 12-14 How to watch: The invitation-only event can be streamed live on crainsdetroit.com or detroithomecoming.com 7-9 p.m. Wednesday, Sept. 12; 9:30-11:30 a.m. Thursday, Sept. 13; and 8:30-11:30 a.m. Friday, Sept. 14. WXYZ-TV (Channel 7) is expected to be on site each day, as well. Speaker list includes: Chris Ilitch, president and CEO of Ilitch Holdings; Jemele Hill, sports journalist with The Undefeated; Derrick Johnson, NAACP president; Kelley Carter, journalist with ESPN; Lawrence Bacow, president of Harvard University; Nikolai Vitti, superintendent of Detroit Public Schools Community District; Detroit Mayor Mike Duggan; Ford Motor Co. Executive Chairman Bill Ford Jr.; Detroit billionaire and Quicken Loans Inc. Chairman Dan Gilbert; and Josh Luber, CEO of StockX. More details: Schedule and agenda information for the event can be found on Detroit Homecoming’s website.

Michigan, and parks and recreation, among other topics. Started in 2014, Detroit Homecoming has recorded an investment impact of $300 million and spawned similar visions in other cities. Thirty-five percent of this year’s

expats attended a previous Homecoming, Robar said. To return, they must prove they’ve done something to help the city; they may invest, but could also build a garden, host an event or mentor a local business, she said.

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Ann Arbor stalwart heads to District Detroit block By Kurt Nagl knagl@crain.com

The Ilitch family signed on for some Cuban flair at the planned promenade and entertainment block between the new Little Caesars world headquarters and the Fox Theatre, Olympia Development said in a news release Thursday. Casual eatery and bar Frita Batidos is the first announced tenant of the Columbia Street development, which Olympia says will include 10 new storefronts and 43,000 square feet of restaurant and retail space. In conjunction with the new $150 million pizza headquarters, the street will be an extension of The District De-

troit, an entertainment district anchored by the new Little Caesars Arena. Frita Batidos will open in 2,400 square feet of space on Columbia Street, where it will serve its popular Fritas — Cuban burgers made from spicy chorizo and served on a soft egg bun — and Batidos — tropical milkshakes with fresh fruit and ice cream. It will also serve alcoholic drinks, such as mojitos and margaritas. It will be the restaurant’s second location, with its original outpost in downtown Ann Arbor since 2010. “I’ve been exploring Detroit locations for a long while and there is no better fit than The District Detroit — it offers the opportunity for us to be in

the heart of downtown with all of the vibrancy and cultural diversity that brings as well as being in the very center of the sports and entertainment district,” Aronoff said in a statement. Construction is expected to start in the next couple of months, with completion expected for spring of next year. Olympia spokesman Ed Saenz said Columbia Street will reopen once construction on the new headquarters is complete in the first half of next year. Other tenants for the block have not been announced. Detroit-based PUSH Design LLC, which did design for the new Founders Brewing Co. Detroit, has been tapped for the restaurant.

The Henry Ford to grow 'invention education'

By Kurt Nagl knagl@crain.com

The Henry Ford is taking over a Connecticut-based nonprofit with a robust network of affiliates across the country in a move to grow its “invention education” pedagogy. The Dearborn-based museum complex absorbed STEMIE Coalition through a transfer of assets, but no money is being exchanged, said Henry Ford President and CEO Patricia Mooradian. The Henry Ford is taking on all seven staff members, who will report to the museum remotely, as part of the deal struck late last month. “We both have such similar missions, and it’s such a huge mission underway with invention education, and we’re extremely involved in it,” Mooradian said. STEMIE’s mission is bridging kids to science, technology, engineering, math and entrepreneurship in an “innovation ecosystem,” according to its website. The 3-year-old group is best known for its National Invention Convention and Entrepreneurship Expo, which brings hundreds of K-12 kids and educators together for a multi-day invention expo.

“We both have such similar missions, and it’s such a huge mission underway with invention education...” Patricia Mooradian

The event was held for three days this spring at The Henry Ford. The two organizations had been in talks to partner since last year. For Henry Ford, joining forces gives the museum access to STEMIE’s rolodex of educational institutions and educators, and increases its exposure. For STEMIE, it means support from a large, long-established nonprofit. The convention will be held yearly at the museum, along with other development programs. STEMIE will be integrated into The Henry Ford and part of “the pantheon of educational activities and opportunities that we do,” Mooradian said.

FRITA BATIDOS

Cuban-inspired eatery and bar Frita Batidos is expanding from downtown Ann Arbor with a new 2,400-square-foot outpost in The District Detroit.

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“Highest Member Satisfaction among Commercial Health Plans in Michigan”

For J.D. Power 2018 award information, visit jdpower.com/awards. Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association.

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Michigan ACOs reap profits in savings program By Jay Greene jgreene@crain.com

Affirmant Health Partners’ Federation ACO, Beaumont Health ACO and the University of Michigan’s POM ACO, three of 19 accountable-care organizations operating exclusively in Michigan under Medicare’s shared savings program, earned $38.1 million in 2017, more than half of the total for such organizations in the state. Under incentives provided by the Affordable Care Act, or Obamacare, hospitals and doctors have been working together the past six years to reduce costs and improve quality for nearly 12 million traditional Medicare patients. An ACO is a group of hospitals, physicians or other health care providers that agree to coordinate and manage care, reduce duplication, share savings and improve quality for a minimum of 5,000 Medicare patients in a contract with the U.S. Centers for Medicare and Medicaid Services. Overall, Michigan’s accountable care organizations earned $71.6 million last year and saved Medicare a total of $181.6 million. As one of the most concentrated groups in the nation, the Michigan ACOs also fared slightly better than national averages in both earning shared savings for their hospital and physician partners and in improving quality scores on their 406,000 Medicare patients, according to an analysis by Crain’s. But the ACOs must meet financial and quality targets set by Medicare to achieve shared savings. Nationally, 60 percent of the 472 Medicare ACOs generated a total of $1.1 billion in savings in 2017 with Medicare sharing $780 million with the ACOs. CMS kept $313.7 million. Next year, CMS has proposed to overhaul the shared savings Medicare program by mandating more ACOs take on full financial risk, which could cause some of the ACOs to drop out of the program. ACO experts tell Crain’s the key to savings and quality improvement is straightforward. Increase access to physicians, coordinate care with hospitals and specialty doctors, and reduce unnecessary services outside of physician offices. Care at the right time and at the right place can lead to fewer visits to urgent care, emergency rooms and hospitalizations, they say.

“It speaks to the power of collaboration among physicians and leading health systems to achieve healthier patients and communities at an affordable cost.” William Mayer, M.D.

Need to know

JJMichigan’s 19 accountable care

organizations earned back nearly $72 million in 2017 compared with $49.2 million in 2016 JJ36 percent of Michigan ACOs earned money in Obamacare program, but two lost a total of $1.8 million JJQuality of care to patients improved by doctors and hospitals working together

Michigan ACO results There are 26 accountable-care organizations with patients in Michigan, but only 17 operate exclusively in the state. Besides Affirmant’s Federation, UM’s POM and Beaumont, the other 14 ACOs are Connected Care, Genesys, UOP ACO, McLaren High Performance Network, Aledade Independent ACO, Prime Accountable Care, Northern Michigan Health Network, SEMAC, Trillium Health, GGC ACO, PMC ACO, The Accountable Care Organization, Reliance ACO and Physician Direct Accountable Care Organization. Affirmant’s Federation ACO earned $7.6 million in shared savings with a quality score of 100 percent its first year in the Medicare program. Beaumont ACO, formerly Oakwood ACO, earned $9.8 million on a 88.9 percent quality score. Federation saved Medicare a total of $15 million and Beaumont saved a total of $22.5 million. “We are thrilled with the news of realizing shared savings with the Federation ACO,” said William Mayer, M.D., Affirmant’s CEO, in a statement. “It speaks to the power of collaboration among physicians and leading health systems to achieve healthier patients and communities at an affordable cost.” The Federation ACO is owned and managed by Affirmant Health Partners — a clinically integrated network of six health systems and affiliated doctors. The health systems are Bronson Healthcare, Kalamazoo; Covenant HealthCare, Saginaw; Henry Ford Health System, Detroit;

Lakeland Health, St. Joseph; MidMichigan Health, Midland; and Sparrow Health System, Lansing. The Federation ACO was one of only two ACOs in Michigan to earn shared savings while achieving a 100 percent quality score. The other was Trillium Health, which earned $1.9 million in savings. The Beaumont ACO has earned savings for five straight years, said Walter Lorang, its executive director and COO. In 2014, Beaumont Health was formed in a merger with four-hospital Oakwood Healthcare, three-hospital Beaumont Health system and Botsford Hospital. “Our team-based focus on population health and collaboration has improved coordinated care among primary care physicians, specialists and hospitals to ensure that patients get the right care at the right time for better health outcomes and sustained success,” Lorang said. For 2017, the Physician Organization of Michigan ACO LLC, which is operated by the University of Michigan and the IHA medical group, saved the Medicare system $45.5 million and achieved 93 percent in quality for about 113,854 people, the largest ACO in Michigan and fourth largest in the nation. POM ACO earned back $20.7 million. “We are proud of the hard work POM ACO providers have done to help ‘bend the cost curve’ while maximizing quality of care for Michigan Medicare beneficiaries. Our unique collaborative approach enables providers to work together to improve patient care while maintaining regional autonomy to adapt best practices to fit their local area,” said Timothy Peterson, M.D., POM’s executive, in a statement. “We are glad to be able to share in savings with CMS and reward our providers for their efforts to improve the quality of care, the cost of care and the patient experience of care. We look forward to continuing this work with providers across Michigan.” Sharing the savings with the University of Michigan, POM ACO has 6,000 physician members who be-

long to 12 different physician organizations in 22 Michigan counties. “As a member of POM ACO from the beginning, we have been fortunate to have the opportunity to partner with some of the highest quality systems and practices across Michigan,” said Kim Speese, executive director of the Wexford PHO and Crawford PHO, in a statement. “As a provider organization in Northern Michigan, we sometimes face different challenges than others who practice medicine in more urban areas. However, having the opportunity to share learnings across the ACO has allowed us to think about some of our issues from a different perspective and implement solutions.” Speese, who also is executive director of population health with Munson Healthcare, said sharing best practices has been one of the keys to success. “Having data for this population of patients has also given us insights into practice patterns and areas of opportunity that can be translated across the entire population of patients that we care for,” she said. Reliance ACO saved Medicare $3.5 million in 2017, but because CMS changed the benchmark formula and rebased its target numbers, the ACO did not share savings with Medicare, said Gene Farber, COO of Reliance. However, it reduced its average spend to $11,300 per patient last year from $12,700 in 2014. “It’s difficult to continue reducing costs indefinitely,” Farber said in a statement to Crain’s. He said Reliance has saved Medicare more than $32 million in the four years the ACO has been in the program. Reliance has 350 primary care doctors and admits patients to most hospitals in Southeast Michigan in Wayne, Oakland, Macomb, St. Clair and Monroe counties. “CMS switched from a national inflation rate to partially a regional rate. Because we have numerous ACOs in Southeast Michigan, all of us working together keeps down the rate,” Farber said. “If we were measured against the national rate, we would have achieved shared savings.”

Other ACOs Besides the 19 shared savings ACO models, there are two other ACO models operating three ACOs in Southeast Michigan. Financial and quality results for 2017 were not made available by CMS.

In 2016, Michigan Pioneer saved Medicare $12 million and received $7.4 million in payments with a 88.95 percent quality score as a Pioneer model ACO. As Next Generation ACOs, Trinity Health ACO saved Medicare $8.3 million and received $6.5 million in payments. The Henry Ford Physician ACO saved Medicare a total of $5 million and received $3.9 million in payments. Here are the remaining ACOs based in Michigan: J U.S. Medical Management ACO (includes Texas), Troy — Total Medicare savings, $46 million; earned savings, $20.7 million; quality score, 92 percent J Genesys PHO LLC, Flint — Total Medicare savings, $6.9 million; earned savings, $2.8 million; quality score, 85 percent J Prime Accountable Care LLC, Southfield — Total Medicare savings, $13.1 million; earned savings, $5.6 million; quality score, 86 percent J Northern Michigan Health Network, Traverse City — Total Medicare savings, $5.4 million; earning savings, $2.5 million; quality score, 96 percent J Connected Care LLC, Port Huron — Total Medicare savings, $1.3 million; no earned savings; quality score, 77 percent J Greater Genesee County (GGC) ACO, Flint — Total Medicare savings, $1.8 million; no earned savings; quality score 89 percent J The Accountable Care Organization Ltd., Farmington Hills — Total Medicare savings, $5.9 million; no earned savings; quality score, 82 percent J Southeast Michigan Accountable Care, Dearborn — Total Medicare savings, $5.3 million; no earned savings; quality score, 32 percent J Professional Medical Corp. ACO, East Lansing, — Total Medicare savings, $253,000; no earned savings, quality score, 32 percent J Alledade ACO — Total Medicare losses, $85,000; quality score, 100 percent J McLaren ACO — Total Medicare savings, $7.4 million; no earned savings; quality score, 100 percent J UOP ACO — Total Medicare savings, $1.5 million; quality score, 100 percent J Physician Direct ACO — Total Medicare losses, $1.7 million; quality score of 82 percent Jay Greene: (313) 446-0325 Twitter: @jaybgreene

Trinity Health joins hospitals’ push to create drugmaker By Linda A. Johnson

Need to know

TRENTON, N.J. — Several major hospital groups, including Livonia-based Trinity Health, on Thursday launched their own generic drug company to tackle chronic shortages and high prices. The new company, Civica Rx, plans to start with 14 widely used hospital drugs long in short supply. The company isn’t disclosing the drugs’ names for competitive reasons, but they include a mix of generic pills, patches and injectable drugs for treating infections, pain and heart conditions, board Chair-

several major hospital systems in creating their own drugmaker, Civica Rx

Associated Press

JJLivonia-based Trinity Health joins

JJIntent is to make drugs that are chronically in short supply JJDrugs include mix of generic pills, patches and injectables

man Dan Liljenquist said. “The mission of Civica is to make sure these drugs remain in the public domain, that they’re available and affordable to everyone,” he said. Drug shortages have been wide-

spread for more than a decade, particularly for inexpensive generic drugs, due to manufacturers consolidating, stopping production of low-profit medicines and having to fix manufacturing problems. Hospitals are particularly hard hit and frequently must scramble to find scarce medicines, often at huge price markups, or come up with workarounds that may not be as effective or safe for patients. Besides creating a reliable supply for its 500 hospitals, Civica aims to reduce drug prices by about 20 percent. The drugs will be sold to nonmember hospitals as well, at slight-

“The mission of Civica is to make sure these drugs remain in the public domain, that they’re available and affordable to everyone.” Dan Liljenquist

ly higher prices, Liljenquist said. The company, based in the Salt Lake City area, plans to make some of the generics itself and hire com-

panies to produce others, he said. It is aiming to get its first medicines on the market by mid- to late 2019. Civica was founded and funded by three health foundations and seven hospital groups, among them Intermountain Healthcare, a 23-hospital system based in Salt Lake City where Liljenquist is chief strategy officer. Veterans Affairs and the American Hospital Association also are participating. Chief executive of the not-forprofit company will be Martin VanTrieste, the retired head of manufacturing quality at biotech drugmaker Amgen.

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Auburn Hills-based TSM Corp. has acquired a business and leased facility in Ramos Arizpe, Mexico.

Auburn Hills-based TSM grows into Mexico By Annalise Frank afrank@crain.com

Automotive supplier TSM Corp. has expanded into Mexico with the acquisition of a production machining facility. The Auburn Hills-based company purchased a business in a leased facility in the city of Ramos Arizpe, it announced late last month. Tim Gould, vice president of finance for TSM, declined to disclose financial details of the deal and the name of the company acquired. The acquisition closed Aug. 21. TSM will rename its new 55,000-square-foot location TSM Ramos. The 64 Ramos employees are expected to remain on with the new owner, growing its staff to more than 200. â&#x20AC;&#x153;TSM Ramos has an experienced, knowledgeable team in place. This makes it a natural fit for us,â&#x20AC;? Tom Prior, president and CEO of TSM, said in a news release. â&#x20AC;&#x153;The combined operations further enhance TSMâ&#x20AC;&#x2122;s powertrain capacities and capabilities globally. We welcome the Ramos associates to the TSM team.â&#x20AC;? TSM is a tier-one supplier of powertrain, chassis and suspension parts founded in 1978. Customers include

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JJAuto supplier acquired production machining facility, business JJMarks firmâ&#x20AC;&#x2122;s first expansion into Mexico JJTSM is â&#x20AC;&#x153;watching the new agreement and the NAFTA agreement very closelyâ&#x20AC;?

Dearborn-based Ford Motor Co. and Detroit-based General Motors Co., according to its website. It recorded $80 million in sales in 2017 and expects to grow to $100 million in 2019.Â The supplierâ&#x20AC;&#x2122;s purchase has been in the works for a year, Gould said in an email. TSMâ&#x20AC;&#x2122;s announcement comes after President Donald Trump unveiled a new, tentative U.S.-Mexico trade agreement that could reduce automotive competition and raise prices, Crainâ&#x20AC;&#x2122;s reported. It requires congressional approval as well as a formal measure to end the original North American Free Trade Agreement which takes six months to initiate. â&#x20AC;&#x153;We are watching the new agreement and the NAFTA agreement very closely,â&#x20AC;? Gould said in the email.

Beaumont Health plans to open new outpatient care centers in Macomb and Wayne counties in 2020. The health system looks to break ground on the projects next year to build one-stop facilities for outpatient services. Patients will be able to visit the centers for primary and specialty care physicians, emergencies, imaging, outpatient surgeries, cancer services and more. The hospital is scouting parcels of land to acquire in northeast Macomb County and in the I-275 corridor in Wayne County, according to COO Carolyn Wilson. There they plan to build structures up to 120,000 square feet apiece, providing room for future expansion to meet population growth in the area. Nondisclosure agreements prevent Wilson from identifying the sites where they are negotiating. The facilities will also offer leases to independent physicians and other groups, a news release said. â&#x20AC;&#x153;Private practice physicians can become investors in the building and they will bring their own employees,â&#x20AC;?

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Annalise Frank: (313) 446-0416 Twitter: @annalise_frank

Need to know

JJBeaumont plans to open 2 new outpatient centers in 2020 JJHospital to break ground on new facilities next year JJNexCore Group was hired to build the projects

Wilson said. â&#x20AC;&#x153;Beaumont employees will also work in there, but independent physicians can either lease space or become investors in the building.â&#x20AC;? The centers will serve residents in northeast Macomb County and western Wayne County with the Beaumont brand and tap into growth in both communities, CEO John Fox said. Chicago-based HKS Architects Inc., which has offices in Northville, is the architect on the development. â&#x20AC;&#x153;Our goal is to create an experience for patients that connects them to the Beaumont network of care and results in integrated and coordinated care that meets our patientsâ&#x20AC;&#x2122; needs,â&#x20AC;? Fox said in the news release. Tyler Clifford: (313) 446-1612 Twitter: @_TylerTheTyler_

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WOMEN IN LEADERSHIP

Rose Bellanca is the president and CEO of Washtenaw Community College in Ann Arbor. ALI LAPETINA FOR CRAIN’S

Told she wasn’t ‘college material,’ Bellanca now leads one By Rachelle Damico

Special to Crain’s Detroit Business

Dr. Rose Bellanca is the president and CEO of Washtenaw Community College in Ann Arbor. In her role, she is responsible for the organization, administration and strategic direction of the college, which serves more than 100,000 students and community members, employs about 1,500 people and has an operational budget of more than $100 million. Bellanca has five degrees, including a doctorate of education from Wayne State University. She has more than 20 years of executive leadership experience in higher education. Before Washtenaw, she was the president of Northwood University’s West Palm Beach Campus, the president of St. Clair Community College and the provost of Macomb Community College. What led you to education?

I knew from the day I walked into my kindergarten classroom that I wanted to be a teacher. My entire childhood and into high school I was always doing something teaching related, such as tutoring children or teaching catechism. In 11th grade, I was attending an all girl’s private

school and doing extremely well in my college prep classes. However, when I took the ACT test it must have been an off day for me. Just before my second semester, my counselor called my mother and me in and told us I was not college material because of my score. Her advice was to become a secretary and marry my boyfriend. I was pulled out of all my college prep courses and put into home economics, typing and business-related classes. I was devastated. I later attended a private business school and entered an executive secretary program. After about four weeks, I was convinced I could teach it. I met with the owner of the school, but he said I needed a college degree. Later I learned about Macomb Community College and met with a counselor there. They told me I’d be able to become a teacher and accepted me. While attending Macomb, I continued business school. Attending both was the best decision I ever made. The business school taught me the skills I needed to do my job. The home economic classes I initially thought were a waste of my time led me to an area called Family Life Education, which was my first degree.

“I entered the meeting, and there must have been 10 men sitting around a table. I’ll never forget what it was like to turn that doorknob. They all looked at me like, ‘Why are you here?’”

cluding a mechanic, a nurse and a waitress. There were students older than I was. The people that came into my class were from all walks of life, and worked hard to get there. I would never have been able to lead as a president had I not had those experiences. It helps me relate to my students, and also my faculty, because I understand when they walk into a classroom they are working to meet the needs of a variety of students.

How did your experiences as a college professor prepare you to lead a university?

I was the first female vocational director in Macomb County. Seventeen vocational programs reported to me, including machine shop, welding and automotive. Being in that arena as a woman was interesting. People would say things like, “even you might be able to understand this.” I was also the first woman administrator. At the time, the men had a difficult time including me in meetings, but I’d overlook it. One day while a meeting was going on without me, three instructors came into my office. They said, “it really bothers us that you’re not at that meeting. You are our boss, and we want you there.” I realized they were right. I entered the meeting, and

As an adjutant instructor at the college and university level, I worked at two universities and taught at the graduate level. Students that came into my classes were all pretty equal in terms of their ability. A lot of them had careers already, and they could also afford school or had a scholarship. I also taught a business class at community college as a part-time instructor. During my first class, when the students walked in, I was taken aback. I met a husband and wife couple who were taking the class to implement it into their company. I had students dressed in uniforms, in-

Were there any early leadership lessons in your career?

there must have been 10 men sitting around a table. I’ll never forget what it was like to turn that doorknob. They all looked at me like, “Why are you here?” I had the same job as they did. There wasn’t a chair, they had to go find one and bring it into this room. I’ll never forget the feeling that I had taking that first step and realizing I have a responsibility to the people who report to me; to lean in, do what’s right and to share, listen, contribute and bring back information. That’s what I was there for. I was not a token. You are a big proponent of skilled trades. Why is that an important focus for you?

I always wondered why society looks at skilled trades differently than those that have a college degree. They say not everyone’s college material, but not everyone’s skilled trade material. They’re professionals that make extremely good wages. There are nearly 800,000 skilled trade job openings available and you wonder why there’s this chaos. We do a lot of training and apprenticeships in the skilled trade arena. They are really one of the best ways for an individual to get the education they need debtfree, and to get a good paying job.

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CALENDAR WEDNESDAY, SEPT. 12 A U.S. Economy and Monetary Policy Update. 11:30 a.m.-1:30 p.m. Detroit Economic Club. Federal Reserve Board Governor Lael Brainard will present her views on the current state of, and the outlook for, the U.S. economy and monetary policy formulation. The Masonic. $45 members, $55 guests of members. Website: econclub.org

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THURSDAY, SEPT. 13 Connecting Cultures to Business Luncheon. 11 a.m.-1:30 p.m. Schoolcraft College. How to successfully manage a multicultural, multigenerational workforce from a woman’s point of view. Panel will be led by Crain’s Detroit Business’ Kristin Bull and will feature: Sumaiya Ahmed Sheikh, Michigan Muslim Community Council; Caroline Vang-Polly, Thai Feast and Bangkok 96; Ronia Kruse, OpTech, LLC; and Mary Engelman, Michigan Civil Rights Department. $30 member; $40 guest. Schoolcraft College VisTaTech Center. Contact: Laura Tahmouch, phone: (734) 427-2122; email: tahmouch@livonia.org; website: livonia.org

FRIDAY, SEPT. 14 Inside the CEO Mind with David Lewis, AT&T. 8 a.m. Sept. 14. Detroit Regional Chamber. David Lewis, president of AT&T, will discuss his personal leadership style as the new president of AT&T. Following his presentation, audience members are invited to participate in a question-and-answer session with Lewis. $30 members, $50 nonmembers. Castle Hall, Detroit. Contact: Jordan Yagiela, phone: (313) 596-0384; email: jyagiela@detroitchamber.com

UPCOMING EVENTS The Impact of Additive Manufacturing On Small Manufacturers. 8 a.m.-noon Sept. 18. Lawrence Technological University. Session will include case studies that share how companies are applying new generation tools to improve the delivery of durable goods. The event includes exhibits featuring regional additive manufacturing service firms, a live additive manufacturing casting demonstration as well as a tour of Lawrence Technological University’s Additive Manufacturing Lab. LTU Buell Building. Free with online registration. Email: mbrucki@ ltu.edu; website: ltucollaboratory. com/events/techtuesday-additive-manufacturing/ Top of Troy: Women of Influence. 8-9:30 a.m. Sept. 19. Troy Chamber of Commerce. Panel members discuss the challenges they faced on their paths to success, the key tools they have used to remain focused along the way, the hard decisions they are faced with on a daily basis and how being a woman has affected the choices they made. Panel includes: Mary Mbiya, vice president, diversity and inclusion program manager, Flagstar Bank; Kelly Finley, owner and broker, New Century Realtors; Joan Haakonstad, owner, Intelligent Office; Julia Kellogg, chief people officer, North American Bancard Holdings LLC. Beaumont Hospital Troy. $20 members, $30 nonmembers. Contact: tracie@troychamber.com

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DEALS & DETAILS CONTRACTS JJKyyba Inc., Farmington Hills, has partnered with Fintech Valley Vizag, Andhra Pradesh, India, an initiative to promote business infrastructure, to organize the $1 Million Startup Challenge as part of the Vizag Fintech Festival, a competition for startups to showcase their innovations and win $1 million as prize money. The challenge started July 20 and will conclude Oct. 25. Kyyba is one of the hosts of the North America Roadshow that will feature startup pitch competitions from 90 U.S.-based startups Websites: kyyba.com, fintechvalleyvizag.com J Tata Consultancy Services, Mumbai, India, an IT services, consulting and business solutions organization, and Discovery Education, Silver Spring, Md., a provider of digital education content and professional development for K-12 classrooms, have launched the Ignite My Future in School initiative in Michigan with a group of middle school educators from Southeast Michigan including hosts Van Buren Public Schools, Saline Area Schools, Plymouth-Canton Community Schools, Taylor School District, Evart Public Schools, Riverview Schools, Wayne-Westland School District and Crestwood School District. Also Ignite My Future in School’s Day of Discovery will be held at Belleville High School with a day of professional development training. Website: ignitemyfutureinschool.org J Qualitech, Bingham Farms, a technology integrator and software re-seller, has installed its hosted VOIP phone system at Alspector, Sosin & Noveck PLLC, Bingham Farms, a law firm. Website: qualitech. net J North American Bancard Holdings LLC, Troy, a payment solutions provider, and Homebase, San Francisco, provider of team management solutions to business, have an agreement to offer small businesses an employee management tool for employees to clock in and out through NAB’s

PayAnywhere technology platform. Websites: nabancard.com, payanywhere.com, joinhomebase.com JJZiebart International Corp., Troy, an automotive franchise, has two new master license agreements and a new U.S. license agreement. The new master license agreements have been awarded to National Automotive Company NATCO S.A.E., Giza, Egypt, and Purdy Auto S.A. in San Jose, Costa Rica. The U.S. license was awarded to Nicholas Lambie, Morgantown, W. Va. Website: ziebart.com J Gale, a Cengage company, Farmington Hills, an education and technology company, has an agreement with Chagrin Falls Exempted Village Schools, Chagrin Falls, Ohio, to use Kids InfoBits to design lesson plans that focus on developing students’ research and critical thinking skills, enabling students to gain comfort with database researching. Website: gale.com

EXPANSIONS J NAI Group LLC, Troy, manufacturer of connectivity systems used in the industrial technology, telecom and medical industries, has opened a manufacturing facility in Suzhou, China. It is NAI’s second facility in Suzhou. NAI’s first manufacturing plant in Suzhou is located in a duty-bonded zone to trade in U.S. dollars. The new China operation, called the NAI Communication Technology Innovation Company Ltd., will conduct business in local currency. Website: nai-group.com J Madonna University’s College of Nursing and Health, Livonia, and Orbis Education, Carmel, Ind., marketer and manager of health care education, have started an Accelerated Bachelor of Science in Nursing program at 25925 Telegraph Road, Southfield. The school added the program to address the nursing shortage by providing nursing education to more students in a short amount of time. Websites: madonna. edu, orbiseducation.com JJSkySpecs Inc., Ann Arbor, provider

SPOTLIGHT of robotics for the wind energy industry, has opened an office in Amsterdam, Netherlands. Website: skyspecs.com JJAlliance Catholic Credit Union, Southfield, has opened a branch at 13482 24 Mile Road, Shelby Township. Website: allianceccu.com

JOINT VENTURES JJDenso Corp., Southfield, an automotive supplier, and Asai Nursery Inc., Tsu City, Mie Prefecture, Japan, an agricultural company, have a joint venture to create a model for horticulture using large-scale greenhouses and agricultural technology. The company, AgriD Inc., will build one of Japan’s largest agricultural greenhouses and develop technologies to improve cultivation productivity for growing vegetables. Construction of the greenhouse will take place in Inabe City, Mie Prefecture, and is scheduled to begin in 2019. Website: denso.com/us-ca/en/

NAME CHANGES J The law firm of Johnson, Rosati, Schultz & Joppich PC, Farmington Hills, has changed its named to Rosati, Schultz, Joppich, Amtsbuechler after the retirement of Christopher Johnson, a co-founding shareholder. Website: jrsjlaw.com

NEW PRODUCTS J Exlterra Inc., Hazel Park, an environmental technology company, has launched the Nutrient Enrichment Passive System, a subsoil technology that enhances the growth, vitality and yield of trees. Website: exlterra.com J Validu, Washington Township, a software company, has released an event monitoring and auditing application tool for customer engagements that replaces a traditional paper signin sheet and lengthy retroactive audits. Website: validu.net JJSwift Biosciences, Ann Arbor, a biotechnology company, has introduced Swift Amplicon HS Panels, a kit for

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

ENGINEERING Keith Vandenbussche Client Executive

Business Leader, Health Business

IMEG Corp.

Mercer

Keith Vandenbussche has been named client executive for IMEG Corp. (formerly FES Group) in Novi, where he previously served as project executive. He has worked in the automotive sector for 34 years with a focus on design, program management and construction, leading key design projects and planning at OEMs, A/E firms and general contractors. As client executive, he will guide the growth in automotive and industrial markets for the full-service engineering consulting firm’s Detroit-area office.

Mercer announced the appointment of John Lapinski as Detroit Office Business Leader, for its Health business. His responsibilities include consulting, growing revenue, and increasing market awareness. Mr. Lapinski will report to Ryan Ramsey, Central Market Business Leader, Health. Prior to Mercer, he worked at Buck Consultants as Midwest Health Practice Leader. Mr. Lapinski has a BA in Economics from Wake Forest and an MBA from Indiana University Southeast.

NEW SERVICES J ProQuest LLC, Ann Arbor, is making more of its digital news content discoverable via Ex Libris Primo, a service that delivers access to libraries’ print, electronic and digital collections. ProQuest historical newspapers, recent newspapers and news stream collections — covering nearly 3,000 titles from the early 1700s to today — are now available through Primo. Website: proquest.com J The University of Detroit Mercy School of Law, Detroit, is offering an online non-JD certificate program to address topics of intellectual property law such as patents, marks, innovations and artistic works. The parttime, online certificate in law intellectual property program begins Oct. 1 and can be completed in one year. Website: lawschool.udmercy. edu J Carhartt Inc., Dearborn a workwear manufacturer, launched a platform called “Carhartt for Workers” to advocate for skilled workers. Carhartt is working with Team Rubicon, SkillsUSA, Future Farmers of America and Helmets to Hardhats. Website: carhartt. com/content/carhartt-for-workers J Meritor Inc., Troy, supplier of drivetrain, mobility, braking and aftermarket systems for commercial vehicle and industrial markets, has launched a new website: meritor. com

Submit Deals & Details items to cdbdepartments@crain.com

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

Saint Joseph Mercy Health System is promoting Bill Manns to president of its hospitals in Ann Arbor and Livingston. Manns, 52, will be transitioning from his role as president of 371-bed hospital Mercy Bill Manns Health Saint Mary’s in Grand Rapids once an interim leader is located for the role — likely to happen in October, said Laura Blodgett, spokeswoman for the health system. Saint Joseph Mercy Health and Mercy Health hospitals are operated by Livonia-based Trinity Health, which combined the two entities last year to form one system consisting of eight hospitals, 2,357 licensed beds and 22,500 employees.

MI nonprofit exec to lead national board

As one nationally respected Michigan nonprofit leader prepares to retire, another is moving up in the national scene. The National Council of Nonprofits has named Donna Murray-Brown, president and Donna CEO of the Murray-Brown Michigan Nonprofit Association, as its next chair. Her appointment to lead the national council comes as Council of Michigan Foundations President Rob Collier, known nationally for his leadership in the sector, prepares to retire by year’s end. Murray-Brown has served on the council’s board since 2015.

PEOPLE ACCOUNTING

CONSULTING John Lapinski

next-generation sequencing of liquid biopsy samples, including cell-free DNA, to facilitate the detection and validation of mutations, useful for oncology and newborn screening applications. Website: swiftbiosci.com JJFathead LLC, Detroit, maker of sports and entertainment graphics, has added the Golden Guardians, the North American League of Legends Championship Series affiliate team of the Golden State Warriors, to its line of esports team merchandise. Website: fathead.com

Saint Joseph Mercy appoints Ann Arbor, Livingston president

J Mary Franks to senior accountant, Cole, Newton & Duran CPAs, Livonia, from senior tax and audit accountant, Angell & Company PLLC, Troy.

EDUCATION J Amy DeWys to director of development, Detroit Public Schools Foundation, from owner and partner, ASA Consulting Group, Grosse Pointe.

HEALTH CARE J Saju George to CEO, Prime Healthcare — Michigan Region, Garden City Hospital, Garden City and Port Huron, from CEO, Prime Healthcare, Garden City Hospital, Garden City.

INSURANCE J

Joan Giffels to director of market-

ing, Sterling Insurance Group, Sterling Heights, from marketing manager.

LAW J Patrick M. Burnett to partner, Jaffe Raitt Heuer & Weiss PC, Southfield, from vice president and senior counsel, Comdata Inc., Brentwood, Tenn.

SERVICES J Karen Kreza to vice president, global human resources, NSF International, Ann Arbor, from global senior human resources director, Honeywell International, Phoenix, Ariz.

TECHNOLOGY J Mathew Varghese to vice president, technology, Munetrix, Auburn Hills, from owner, iTekk LLC, Troy.

September 10, 2018

’SIDNETROIT C R A I N ’ S D E T R O I T CBRAIN US E S SBUSINESS // S E P T E M B E R 1 0 , 2 0 1 8

Page 17 17

EDUCATION FROM PAGE 1

“It would excite the heck out of me if they had a larger presence in the core of our city and even on the edges of our city,” Johnson said in an interview for the Crain’s “Detroit Rising” podcast. “The more we can generate talent locally, the better chance we have to create jobs and attract the jobs of the future. And that’s where the whole conversation needs to go.” The UM president’s interest in expanding the university’s presence in Detroit is driven both by its role as a gear in the state’s economic engine and also because it could be good for the institution’s efforts to recruit students, world-class researchers and the kind of capital investment that has been largely contained in Ann Arbor. “We would only do it if it benefited the mission of the university. But part of that mission is to help the economic development of the state that we’re serving,” Schlissel said. “And if we think we can play a positive role for both the university and the city and state’s economy by having a larger footprint in Detroit, it’s something we’d consider really seriously.” There’s a historical parallel in Schlissel’s suggestion that Ford’s big bet on the town where it was founded and making the neoclassical Rackham building the university’s home base in Detroit. Horace Rackham, the namesake of the building and UM’s School of Graduate Studies in Ann Arbor, was one of the original investors in Henry Ford’s fledgling automobile company 115 years ago. UM paid $5.1 million to the Rackham Engineering Foundation and the Engineering Society of Detroit for the east wing of the building (UM already owned the west wing for its extension service). Wayne State University’s Department of Communication Sciences and Disorders has a lease for space in the building that ends in July of next year. UM also acquired a parking structure from the Rackham Engineering Foundation. Situated at Woodward and Farnsworth across the street from the Detroit Institute of Arts, the Rackham building stands out in the burgeoning Midtown neighborhood as a gem in need of makeover. The aging front plaza on Farnsworth is mostly blocked off from pedestrian traffic. “We’re certainly going to invest some resources into renovating it,” Schlissel said. “It’s fallen into disrepair.” Schlissel’s developing plans for the Detroit building have risen to the university’s board of regents, which approved the purchase of the rest of the building last July. “I know we’re working now to have a bigger presence,” said Ron Weiser, a UM regent and Ann Arbor real estate developer. But the direction of UM’s ambitions to have a larger presence in Detroit will fall on Schlissel’s shoulders, Weiser said. Schlissel, who became UM’s 14th president in July 2014, is starting to spread his leadership wings beyond the university. At last week’s Detroit Economic Club meeting, he called on gubernatorial candidates Gretchen Whitmer and Bill Schuette to start telling voters what their vision for higher education policy is — before the Nov. 6 election passes by. For much of this century, the state has lacked any true leadership from Lansing in the strategic mission of its 15 public universities, which are constitutionally autonomous but still arms

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

The University of Michigan paid $5.1 million to the Rackham Engineering Foundation and the Engineering Society of Detroit for the east wing the 77-year-old Horace Rackham Educational Memorial Building at Woodward Avenue and Farnsworth Street in Midtown. The university already owned the other half of the 121,000-square-foot building. UM President Mark Schlissel says he’d like to make the Rackham building UM’s “home base” in Detroit.

JEFF A. KOWALSKY/DETROIT ECONOMIC CLUB

University of Michigan President Mark Schlissel wants to the university to have a larger presence in Detroit. That could start by renovating the 77-year-old Horace Rackham Educational Memorial Building the university became full owner of earlier this year, Schlissel said.

of the state. Most of Jennifer Granholm and Rick Snyder’s combined 16 years as governor have been defined by a prolonged disinvestment in higher education — and efforts to slowly restore funding that was slashed during the recession and Snyder’s budget-balancing first year in office. In the long absence of a strategy from Lansing, Detroit presents an opportunity for UM and Michigan State University to relocate pieces of their research arms to the city, said John Austin, a former president of the State Board of Education. With Wayne State University, which is partnered with UM and MSU through the University Research Corridor, the three research universities could be a “fulcrum for growth” in Detroit, Austin said. He points to the role Carnegie Mellon University and Pittsburgh University have played in transforming their hometown from Steel City to a burgeoning tech hub. “Not every place has an MSU or UM or a Wayne State,” said Austin, director of the Michigan Economic Center in Ann Arbor. “There’s nothing more powerful than the location of research universities and learning institutions to make that dynamic happen.” Wayne State would “certainly welcome” more investment in Detroit from other institutions of higher edu-

JOB FRONT

cation, said M. Roy Wilson, president of WSU. “If UM or any other university wants to come down and contribute, I think that’s fine,” Wilson said in an interview. “The city of Detroit could use whatever help they can get.” Detroit’s revitalization, to date, has been largely fueled by hometown companies that sell pizza (Little Caesars), SUVs and pickup trucks (General Motors and Ford) and mortgages (Quicken Loans and Dan Gilbert’s real estate empire). Austin argues the state’s universities could play a larger role in developing the next big industries and employers to sustain the comeback of Detroit and, perhaps more importantly, Michigan. Detroit, with its urban landscape and geographic position in the Great Lakes basin, could be the city where Michigan State University researchers pioneer new methods in urban farming and food production. The Detroit River would make an

ideal location for the University of Michigan to establish a freshwater research center and tackle the world’s water problems — an idea that’s been kicked around in economic development and philanthropic circles in the past. “Wouldn’t it be great if Detroit was not just pizza, mortgages and cars, but also the center of clean energy, freshwater innovation and urban food sustainability?” Austin asked. “We actually have the horsepower to do it if the research universities would get in on the action.” Schlissel seems ready to make a move in Detroit. “I’ve heard many people say, and I agree, that the state of Michigan can’t fully succeed unless the city of Detroit succeeds,” he said. “Anything we can do to contribute to that is part of our mission.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

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WEBSITE FROM PAGE 3

The site plays matchmaker, connecting like interests, and tracks as users come to final barter agreements through the site. So far, the posts have generated a handful of successful matches or deals, Dworkin said. There’s no limit to what people can offer or which creative services they might seek, he said. Someone may have an extra room in their house and need piano lessons for their child. Someone who travels for business and has a bunch of airline miles might offer them up in exchange for a private violin recital in their home, Dworkin said. At Aaron Dworkin: the same time, Website already businesses could generating deals also find creative talent through the site. A restaurant seeking a jazz quartet to perform once a week might offer meals in exchange for the performance. The goal is that ArtsShare will become widely adopted and people will find it of use, not only in the U.S. but internationally, Dworkin said. “Especially now that I teach entrepreneurship as faculty here at (University of Michigan,) I’m constantly in an ideation state, if for no other reason, so I can describe it to my students.”

ArtsShare, a new creative services barter site developed by The Sphinx Organization Founder Aaron Dworkin, is already attracting hundreds of postings just weeks into its launch. ARTSSHARE

A past winner of a “genius grant” from the Chicago-based John D. and Catherine T. MacArthur Foundation for his founding of Sphinx and its programs to increase diversity in classical music, Dworkin is a professor of arts leadership and entrepreneurship in the UM School of Music, Theatre & Dance and professor of entrepreneurial studies in the Stephen M. Ross School of Business. He tapped a 12-member team of advisers to help him develop his idea for the creative services bartering site. Among them: Robert Lynch,

president and CEO, Americans for the Arts and Americans for the Arts Action Fund; Google software engineer Jeremy West; Phil Schermer, an associate and senior adviser at New York-based investment firm BlackRock Inc., ePrize founder and former CEO Josh Linkner, and Howard Hertz, co-founder of Detroit-based Hertz Schram PC and lead attorney for its entertainment practice group, which has represented clients including rapper Eminem. Dworkin designed the ArtsShare

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Detroit Homecoming is produced by Crain’s Detroit Business with the support from more than 35 private foundations, corporations and individuals.

site and invested $30,000 to build it out, contracting two different programming teams through the global freelancing platform UpWork.com. He’s quick to point out the site is still in its infancy, with aspects yet to be worked out. For example, users haven’t always assigned a category or keyword to their posts, which makes them tougher to find. “Our hope is we will actually learn from this and the types of things people offer,” Dworkin said. At some point the site could seek revenue through advertising and/

or user contributions to help fund the site, he said. But for now, the main focus is to build the community and its value to users. Dworkin plans to track the deals that are happening on a monthly basis, along with other statistics on things like traffic, geography of traffic and more common searched categories (like music) for future marketing and decisions on where to invest in the site. Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

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

TRADE FROM PAGE 3

That’s important in almost every industry. Try to have that dialogue and push policies forward in that way to address the issue. Also, students. We educate a lot of international students in the United States but then when their education is over, we send them back. We need have a pathway for them to be able to be productive members of the workforce here in the states and create opportunities for them. Timmons: (Immigration) has always been important to the success of our country, to the growth of our country. And will continue to be. We clearly have a divergence of opinion right now, not only with those who are running the programs in Washington, but I think the American people have a divergence of opinion as well. It’s part of our responsibility as a business community to show what tremendous contributions immigrants to this country, have made, and will make in the future. You got a win on tax policy, so is the plan for immigration to wait for a new administration where this is more palatable? Timmons: Our job at NAM is policy.

It’s not process. It’s not politics. It’s not personality. It’s all about policy and what makes us more competitive as a country. Our job is to constantly tell the story of what makes us competitive. What strengthens not only manufacturing, but the manufacturing workforce. Tax reform, regulatory re-

“(Immigration) has always been important to the success of our country, to the growth of our country...” Jay Timmons

form, smart regulations; we’re clearly a part of that. The story on trade is a part of that as well. We don’t necessarily see eye to eye on every move the administration has made on trade. Or immigration and workforce issues. Fitterling: To your point, I don’t think you just wait. These are messages you have to carry in … not just to the top of the administration, but through Congress, through your representatives to make sure that you get those voices heard, and you have to build up enough momentum that it gets on the radar screen. We’ve seen some positive developments, like the use of Pell Grants for non-degreed opportunities. We can take that money and help people get skills to enter the workforce, you don’t have to get a college degree. Whenever we see positive changes like that, we like to come in and say here’s another positive thing we can do to try to bridge that gap. You never know what day is going to be the right day; where your message is going to be received with the right positive mindset. I think what we have to do is get a sound policy direction. We have to make the administration more receptive to our arguments.

Jim (Fitterling), you said back in March that the tariffs issue may force Dow to look at investing in Canada or Argentina over the U.S. Has your position on that changed? Fitterling: I think our concern is that

what you’re doing (with tariffs) is limiting market access. We’re a big producer in the United States, but we’re a big producer in a lot of places in the world. We export out of a lot of those places, where we can export competitively. We export out of here. We export out of Canada. We export obviously out of Argentina, the Middle East, Thailand, other locations. We’d love to just be able to say, it’s a foregone conclusion the next investment is here in the United States. But you have to look long term and see if you’re going to have the same kind of market access and if that’s the best place to put the shareholders’ money for the next investment. That’s the conversation we’re having with the administration right now; to help them understand how complex these supply chains have become. The growth rate of global trade is two times the growth rate of GDP. That just means that the supply chains are such that people are sourcing raw materials and sending product back in a lot of industries. If we just have tariffs alone and say that’s the end point, we’re going to stifle global trade and we’re going eventually to feel that in the macro economy. If the tariffs are a means to an end which is a rules-based trade agreement and try to get a discussion that leads to a more long-term sustainable trade agreement, then it’s a different objective. That’s the position

we’ve been taking. We shouldn’t be doing this from a standpoint of tariffs for tariffs sake. We should be trying to accomplish something broader. Are we (the U.S.) doing that? Fitterling: I do think we are. We’re

19 have been a disaster; it’s not. It sounds like you’re justifying a not great deal? Timmons: It’s workable. In many re-

spects I think it’s a strong deal for the United States, United States manufacturers ... but is it perfect? No.

trying to get some leverage to have that kind of negotiation at the table. We have to come to a negotiation that’s a win-win for both sides or that’s not going to be sustainable either.

In what way is it a strong deal? Fitterling: There’s a deal there.

Did we (the U.S.) do that with NAFTA 2.0? Timmons: We certainly have a win

see. Especially because of Canada. The Canada equation is going to be extraordinarily important. Look, I can tell in one specific area where it will make a tremendously positive difference is in biologics. A 10-year (intellectual property) protection. Which is far better than we had in (Trans-Pacific Partnership), which was viewed as the best we could possibly do.

with the announcement that Mexico and the United States have reached an agreement. The win is that a form of NAFTA will survive. But the ultimate win is going to be making sure it’s a trilateral agreement with Canada. Are the details favorable to the manufacturing sector? Timmons: The details have yet to be

put on paper, shall we say. But the trade dispute mechanisms are not nearly as strong as they were in the original NAFTA. The rules of origin are not as onerous as originally proposed and more flexible than I think were feared. The sunset clause that the administration originally proposed is gone and replaced with a six-year review with a 16-year renewal. So while not as good as permanent certainty, it is certainly much better than the fiveyear sunset. So it’s a good result, possibly not the best we could do. What I’m hearing you say is it could

I mean the details. Do you think it makes manufacturers stronger than the original agreement? Timmons: I think we have to wait to

What about for Dow? Is it a better or worse deal? Fitterling: I think it’s workable. Dow

does about $1.2 billion in trade with Mexico and Canada. So I think it’s a workable deal for us. I think as we go forward, the real steps for us will be where we make our next investments. Those for us typically are where we have access to market, competitive feed stocks, a labor force, competitive construction. So that’s very favorable for the United States. But there are opportunities for us in Canada to make those investments. And there are opportunities elsewhere. So we have to make those decisions after we see the final deal.

Thank You, Metro Detroit Because of you, more than 8,000 Detroit youth had a summer work experience. On behalf of Detroit youth and our partner agencies, Thank You for your support of this incredible program. We could not have done this without you. If you are interested in employing or supporting next year’s youth, please email GDYT Exec. Director, Jason D. Lee at jlee@detempsol.org.

gdyt.org | (313) 788-7213 #GDYTGrind

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MASCOTS FROM PAGE 1

How they’re used Thanks to the advent of social media, sports teams have a variety of platforms to instantly deploy their mascots beyond games and events. The Pistons made Hooper the star of a series of 29 funny videos on social media, one for each of the teams Detroit will play this year. For example, to unveil the dates for the Toronto games, the video is of a guy in a dinosaur outfit dancing to rapper and Raptors fan Drake’s “Kiki” — and then Hooper comes flying in to tackle him. The Pistons are running a contest for fans to vote for their favorite Hooper video. The videos so far have amassed 656,000 view across the team’s social media channels (Facebook, Twitter, and Instagram), with 4.7 million total impresDiane Ferranti: sions, the team Hooper can be said. The Hooplighthearted. e r - t a c k l i ng - t h e - d i n osaur video has 74,000 views. The Pistons use Hooper for less serious messaging when they can be lighthearted. The schedule videos fit snuggly into that strategy. “It’s more mascot-appropriate. The digital market is perfect for it. It hits a different demo,” said Diane Ferranti, the Pistons’ vice president of production and programming. “Hooper can do things and be silly.” Hooper also helps generate revenue by being part of the corporate advertising sales packages assembled by the team’s business unit. For example, Hooper attended Troybased Flagstar Bancorp Inc.’s company picnic this year as part of bank’s wider deals that include its logo on the team’s game jerseys. And as for all teams, Hooper merchandise can be found at the arena and online for sale, another way of using the mascot to generate sales. None of the teams will discuss their finances, so it’s unclear just how much money they make off their characters’ likenesses. For iconic mascots like the Phillie Phanatic, the sales can be eye-popping. The Phillies told Forbes in 2016 that mascot merchandise accounted for 10 percent of all retail sales at their ballpark, which was more than any single player’s sales at Citizens Bank Park. None of Detroit’s mascots are quite as popular or well-known beyond their markets at the Phanatic and the San Diego Chicken but they still generate cash and engender good feelings. “People love to buy Paws merchandise,” Hill Zeringue said. The Lions use Roary to make new fans/customers. For example, the Roary-led Cub Club is for kids up to age 14 and its $40 price includes events, such as a sleepover on the Ford Field turf and a movie night, merchandise, tickets to a preseason game and discounts. “It’s our way of engaging with that next generation of Lions fan,” said Emily Griffin, the Lions’ vice president of marketing. Like Hooper, Roary was part of the Lions’ schedule-reveal video that re-

DETROIT PISTONS

Detroit Pistons mascot Hooper attended Troy-based Flagstar Bancorp Inc.’s company picnic this year as part of a corporate advertising deal between the bank and basketball team.

vealed 2018’s opponents. He was shown running on a treadmill trying to snatch a toy bird on a stick (Arizona Cardinals) and chasing a laser pointer dot (Panthers). The Lions plan to again capitalize on Roary’s popularity later in the season, too. For the L.A. Rams game on Dec. 2, the scheduled halftime entertainment on the field is a mascot bowl, i.e. Roary and other NFL and local mascots play against each other in a football game.

How we got here Sports team used animals or even children as informal mascots in the 19th century, with logo characters coming largely in the 20th century. It wasn’t until the 1970s that the first modern-era character mascots appeared — the San Diego Chicken, who wasn’t formally a Padres mascot but served as one, and the Phanatic created by the Philadelphia Phillies. That spawned a wave of mascot births. There are thousands of them for high school, college, minor league and major league teams globally. Amusement parks and corporations use them, too. Mascots have been the subject of Hollywood attention in recent years: The 20-episode Hulu series “Behind the Mask” was an inside look at high school, college, minor-league and pro mascots that ran from 2013-15. Comedy director Christopher Guest in 2016 debuted his mockumentary “Mascots” and HBO’s “Hard Knocks” NFL training camp series did a 10-minute tongue-in-cheek version of just mascots — including Roary. In Detroit, Paws was introduced in 1995 and the Pistons’ Hooper came a year later (he replaced the unloved Sir Slams-A-Lot, who lasted just two seasons). The Lions’ Roary first hit the Ford Field turf in 2007. The Detroit Red Wings don’t have a costumed character for their Al the Octopus. While the teams may be rivals for fan dollars, the mascots play nice. “Paws gets along really, really well with Roary and Hooper. They’re really good friends,” Hill Zeringue said. The three often appear at community events together. Paws has the largest social media reach, with 17,000 Twitter followers and plenty of usage in the team’s official social media accounts, and may be the most recognizable of the three mascots.

Paws averages 500 annual appearances aside from 81 home games a season. Roary and Hooper each make about 300 appearances a year. Fans and companies can book Paws at $160 per hour. Roary begins at $175 an hour.

Inside the costume None of the three Detroit pro teams were willing to disclose the identity of the actor inside the mascot suits, or make them available for an interview, because they want to protect the public-facing characters of Paws, Roary and Hooper. The teams did say each mascot has been in costume for several years. All are currently believed to be men, but it’s known that women have played Paws in the past. To prepare for the role of in-game entertainer, the actor playing Paws watches a lot of YouTube to be up on latest songs and dances, Hill Zeringue said. The Tigers trust him as an expert on the team and character. “He has great insight into who we are as a brand,” she said. Unlike many major league mascots, the Paws actor works as the character part time, and has another job outside of baseball. Roary and Hooper are full-time team employees. Five different actors have portrayed Hooper, and the current one has been inside the suit for several seasons, Ferranti said. “He’s our biggest fan and best ambassador for the team,” she said. The actor inside the Roary costume had done the character for five years. “His role full time is 75 percent coordination of all things mascot, and 25 percent in youth football and programming through clinics and corporate partners,” Griffin said. That includes up to 100 youth football camps. The Roary actor handles the mascot’s social media himself. Roary has more than 4,000 Twitter and 4,000 Facebook followers and nearly 600 more on Instagram. He’s mostly, however, used in social media via the team’s official accounts that have far greater reach — about 3.5 million followers across Facebook, Twitter, and Instagram. “We let him handle (Roary’s channels) because there’s no one better suited,” Griffin said. The Tigers and Pistons have their social media coordinators handle the

mascot accounts instead of the actors. That’s common practice in major leagues, but in the minors the actor often handles everything from tweeting to booking appearances. One sports organization that was willing to forgo actor anonymity was the United Shore Professional Baseball League in Utica. A developmental league begun in 2016 by Rochester sports entrepreneur Andy Appleby, the USPBL has four teams and four mascots on hand for every game during the summer. One of the league’s mascots is Lancelot, a furry gray unicorn (with a baseball on his horn) that represents the Utica Unicorns. Inside the Lancelot suit this summer was Ortonville native Hannah Lapanowski, who was a USPBL marketing intern. She’s a sports management major and soccer player at Olivet Nazarene University in Illinois, and said the mascot experience was both enjoyable and useful for her career. As “Lance” she mainly interacted with children, helped with promotions and greeted fans at the gates. “Even adults were excited to see a unicorn,” she said. Lapanowski, 20, estimated she was in a mascot suit at least 30 times this season, mainly as Lancelot but also as Buzz the Beaver and Ribbi the frog — but not as Woolly of the Westside Woolly Mammoths because she wasn’t tall enough to see out of the costume’s eye holes. The USBPL plays outside in warm summer months, and the mascot suits get hot inside, Lapanowski said, so they are packed and sent every Sunday to professional cleaning, and after each game they get a spritz of Febreze and other cleaners. “They’re taken care of, but it does get pretty cruddy in there. It was nice getting assigned Lance, because it was my own sweat,” Lapanowski said, laughing.

The pay The USPBL uses a rotation of unpaid interns and college students for mascot work during games, Appleby said, adding that appearances outside games earn them a small stipend. The league trains the mascot actors how to interact with children and fans. “As with all of our employees, we train on the Disney model, so we are looking for mascots who help to create that special experience for fans, especially kids,” USPBL founder Appleby said. The Tigers, Lions and Pistons each declined to discuss mascot pay. Professional mascot guru David Raymond offered his insight: Actors just starting out at the lowest level of minor-league baseball might be paid $12 to $50 a game. That can ramp up as personal appearances increase. Full-time mascots in the minors start at about $26,000 a year and with incentives can top $30,000 annually — along with benefits such as health care and a 401(k), Raymond said. At the highest levels, mascot salaries can run from about $75,000 a year to a few hundred thousand dollars, he said. “Those are the ones that are in the highest demand, requiring a great deal of experience and talent. It’s not dissimilar to a major league player,” Raymond said. “There are only so many spots available.” Raymond, at 21, was the first person to don the famed Phillie Phanatic outfit. It was 1978 and he was paid $25 a game. He worked the role for

17 years. “When I left, I was making a very nice salary in six figures,” he said. Now 62, he owns West Grove, Pa.based Raymond Entertainment that designs and builds mascots for teams and corporates, offers repair, cleaning and storage; trains mascot actors; and provides consulting services on how to best use the characters to drive fan loyalty and build revenue. Raymond also does headhunting for teams and companies seeking mascot actors. The Raymond Entertainment mascot creation inventory includes the Toledo Mud Hens’ Muddy and Muddonna, the Cincinnati Reds’ Gapper, Burnie of the Miami Heat, the Tampa Bay Lightning’s Thunderbug and Victor E. Green of the Dallas Stars. The stable includes many minor-league and college mascots, too. “A lot of organizations forget the power their character can do, the incalculable value their characters can bring,” Raymond said. “Why do people love mascots? It’s a component of powerful fun. They distract people with fun. They make them feel better. They drive happiness through their performance.”

Monetizing mascots Raymond’s Phanatic and the San Diego Chicken are widely credited with launching the ongoing popularity of team characters. By the late 1980s, Raymond said, most teams realized they could profit from the mascots in a variety of ways. That’s why he took off the Phanatic suit and moved into the business of creating mascots and telling teams how to make them work. “When it became a business model, that’s when it started to take off. Once money is there, people listen. They wanted us to tell them how to do it,” he said. His lessons are simple. “They have to work hard creating a back-story to connect that new character to that fan base and community at large,” he said. “If people don’t care about your character, it’s not going to work well. You weave in what’s great about your city, your community and what’s great about your organization.” Teams also have to spend money to make money with mascots, and make it a real part of their games and their promotions and messaging. “The organization must support it. They have to embrace the character and they have to use it,” Raymond said. “They have to continue to invest in character and brand. If they’re not using it, people know it’s a kid in a costume and don’t believe it.” Raymond’s headhunting missions and mascot camps aim to find performers who can meet what teams are seeking. Mascots are usually silent, so they have to rely on physical comedy, often with flamboyant and exaggerated behavior, and do so in a way that engages everyone from young fans to die-hard adult fans. The acting ranges from cuddling babies and toddlers to signing autographs — not easy with big fur paws — to stunts, slam dunks, races, and sometimes even teasing opposing teams and rival mascots. “A talented performer can bring it to life,” Raymond said. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

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LIONS FROM PAGE 3

The roster, anchored by 30-year-old quarterback Matthew Stafford, is intended to compete now for a championship — the pro football grail that has eluded the team’s fans, players, critics, and ownership since 1957. Quinn inherited a roster when he was hired in 2016 that had been assembled by the previous front office led by General Manager Martin Mayhew and team President Tom Lewand. They both were fired by team owner Martha Firestone Ford in November 2015. She put Ford family insider Rod Wood in charge as team president, and he and advisers lured Quinn away from the Patriots, where he was part of a staff that had won four Super Bowls since 2001. The comparisons to the Patriots are inevitable. New England is the only team he worked for, and the Patriots’ unparalleled success under coach and General Manager Bill Belichick makes it natural for others to seek to emulate them. Quinn hired longtime Belichick assistant Matt Patricia in January as the Lions’ latest head coach, further cementing the notion that Detroit is trying to model itself on what the Patriots do on and off the field. Patricia’s job is to deploy and manage the talent that Quinn acquires. A rough preseason has fans and pundits braced with skepticism, which is the default mode for those following the star-crossed Lions. It’s up to Patricia and the players to win. But Quinn’s role is to ensure the right players are on the roster, and that the team gets those players under the often-Byzantine rules that govern the NFL’s contract system.

The salary cap A major difference between the Lions and traditional businesses is that the NFL labor force is governed by a salary cap. That means Quinn and every other general manager has to not only identify legitimate college talent and veteran free agents, but also fit their compensation under the league’s player spending limits. The NFL’s salary cap for 2018 is $177.2 million per team. The cap system was negotiated under the league’s collective bargaining agreement with the player union. Its growth is indexed against the NFL’s total annual revenue, and this year’s cap grew by $10 million over 2017, thanks to the NFL taking in $14 billion last season. Teams also have a salary floor; they must spend at least 89 percent of the cap ceiling. Penalties for violating the cap include fines in the millions of dollars. The league office can also cancel contracts and strip teams of draft picks. The Lions currently have $159.2 million in active contracts, with an additional $10.5 million committed to ex-players, per salary tracking site Spotrac.com. Detroit has about $7 million in room under the cap. The league average was $12.4 million in cap space going into the weekend.

Quinn’s philosophy Every team operates under the same salary limits, but each has its own preferences for acquiring talent. Some seek to build their rosters entirely through the annual college draft, and add a few veteran free agents to fill out team needs. Others concentrate on finding elite veteran talent and using the draft to fill holes. A third way is a blend of the first two, based on the situation each season. Detroit under Quinn and his prede-

The Detroit Lions begin the 2018 season on Monday.

cessors have been a draft-focused team that tries to sign veterans where a need arises. For example, the Lions have struggled to run the ball effectively for years — their last 100-yard rusher in a game was Reggie Bush on Thanksgiving 2013 — so this season they signed a nine-year veteran running back LeGarrette Blount to a 1-year, $2 million contract while also drafting Auburn’s Kerryon Johnson in April. Quinn declined to comment, but he has publicly discussed his philosophy on acquiring talent, particularly elite players, through the draft rather than free agency because of cost. “I think there’s plenty of playmakers or game-changers, as you call them, in the draft at all levels,” he said in press conference remarks provided by the team. “So, I think price-wise it’s much more — A better way to do it is do it in the draft because the premium positions in free agency, as you guys know, the prices are getting way up there. So, you really have to make conscious decisions of where you’re going to make investments in terms of free agency, and then really kind of fill in the gaps when it comes to the draft and kind of hopefully take the best player on the board.” The philosophy is flexible. “It changes year to year. It really depends on what your roster is at the end of the season, you know, when you’re getting into mid-February, you’re going to the (pre-draft skills combine) talking to agents about upcoming (unrestricted free agents),” Quinn said. “You’ve got to really look at the market and say, ‘Well, you know, position one might have a ton of guys in free agency.’ So you can get one of those guys at a reasonable cost. Or, if one year there’s only two guys at the top, you know those two guys are getting overpaid. Unless you have to have them, you probably don’t want to do that from a roster-building standpoint. So, you’ve got to look at the draft and say, ‘All right, what’s heavy in the draft?’ So, something we do in February quite a bit is look at the draft board. Where are we heavy? Where are we light? And then look at the free agent board and just do the same thing.”

Big deal The largest contract decisions are sometimes the easiest. Rookie contracts are limited under the labor deal, so it’s veterans who get the large deals. Quinn and the Lions — with sign-off from Rod Wood and the Ford family ownership — gave quarterback Matthew Stafford a five-year, $135 million contract last season that runs through 2021. At the time, it was the largest contract in NFL history, but several deals have since surpassed it. The deal was a simple decision for Quinn because Stafford holds nearly all of the team’s passing records, and is considered among

the best quarterbacks in the league. Past contracts for similar players at the same position dictate financial terms, typically, so it’s a matter of haggling over details. If Stafford gets Detroit some playoff victories — the last came in January 1992 — and maybe a Super Bowl, his next contract will be even more costly. He’ll be 34 when the deal is up, theoretically at his physical peak for an NFL quarterback. If Stafford hasn’t delivered anything more than statistics, the Lions will be faced with a choice on whether to re-sign him or find a new young passer. If Quinn is still running the team in 2021, he’ll be faced with that more complex decision. Stafford will have been paid $178.2 million in career earnings by the end of this season. By the end of his current deal, that total will rise to $262.2 million. It doesn’t take years of working under Bill Belichick to realize that Stafford is the cornerstone of the Lions’ roster, so some of the team’s current investment philosophy must be predicated on protecting him and giving him weapons to be more effective. Quinn, on paper, has done that. In 2016, he made Tyler Decker Detroit’s No. 1 draft pick and put him at left tackle. In free agency last year, Quinn signed guard T.J. Lang to three-year, $28.5 million deal, and tackle Rick Wagner to a five-year, $47.5 million contract. This season, Quinn drafted offensive lineman Frank Ragnow with Detroit’s firstround pick, and two year’s ago took Graham Glasgow in the third round — both are starters. Wide receiver Marvin Jones was another Quinn acquisition intended to help Stafford. Jones was signed to a fiveyear, $40 million contact in 2016, and last season he caught 61 passes for 1,101 yards and nine touchdowns. Last year, Quinn drafted receiver Kenny Golladay in the third round, and he’s showed promise. Overall under Quinn, Detroit has $90 million invested in 26 players on offense, seventh most in the league, per Spotrac. The NFL average is $78 million. On defense, the Lions are spending $62.1 million (19th) while the league average is $67.8 million. Special teams — the kicker, punter, and long-snapper — are getting $6.8 million (6th) this season, while the NFL average is $4.5 million. Is it working? One prominent NFL insider said it’s still a bit early to judge Quinn’s performance but noted that Detroit’s overall drafting in recent years hasn’t produced immediate game-changers. “I’m not sure if you can say that it’s efficient spending or not until you see the results on the field,” said Jason Fitzgerald, founder of OverTheCap.com that analyzes the salary cap and contracts. “Since the drafts were not great

for some time, he has had to go into free agency a good deal to build the team.” The Lions have taken 24 players in three college drafts under Quinn’s leadership. Eight of those players have been cut, with three — quarterback Jake Rudock, running back Dwayne Washington, and defensive end Anthony Zettel — being jettisoned recently only after losing their backup roles in battles with more talented free agents. Rudock was signed to the team’s 10-player practice squad of developmental players that practice with the team but do not dress for games. Quinn had 10 draft picks in his first Lions draft. It produced two starters, three back-ups, and the rest are gone. The team’s initial depth chart released last week shows four Quinn draft picks starting, and 11 as backups or situational substitutes.

Crunching numbers Fitzgerald, who co-authored a book in 2016 on the salary cap, said the Lions under Mayhew and Lewand botched handling the salary cap because of the deals and extensions they gave top draft picks Calvin Johnson and Ndamukong Suh, but Quinn isn’t hamstrung by what past regimes did. “I’d think they are past that now. Suh is long gone and Johnson hasn’t hurt their cap since 2016. In hindsight, they did a bad first extension with Stafford. They opted for the short-term contract in 2013 at a time when most teams would have gone longer and gotten more cost certainty. That caused them to have to do a big contract earlier and have to use the big, big bonus with it,” he said. Fitzgerald provided some analysis from his OverTheCap.com (OTC) that puts Quinn’s current spending decisions into context. On average, NFL teams are currently spending an average of $46.6 million combined for their top three players — based on the average annual value of their deals, according to OTC’s number crunching. For the Lions, the top annual contract value average for the club’s three highest-paid players in 2018 is $56.1 million for quarterback Matthew Stafford ($27 million), defensive end Ezekiel Ansah ($17.1 million), and guard T.J. Lang ($12 million). Detroit is one of nine clubs to spend $50 million-plus on the top three players, but only three of those teams made the playoffs last year (Atlanta, Minnesota, Pittsburgh). When you rank teams by highest annual contract value for their top 10 players, the number of playoff teams jumps to seven of the top nine teams. Those teams have an average of $110 million earmarked in annual average contract value to 10 players. The Lions rank 11th with $106.1 million for their top 10. In other words, teams that have 10 players who command large contracts are far more likely to make the postseason. Those teams have generally committed big dollars to contract extensions for good players, or have attracted top free-agent talent to bolster the most expensive portion of the roster. Teams that spend the most on just three good players and cannot (or refuse) to get additional talent that commands large deals, they’re less likely to make the playoffs, based on OTC’s data. Under Mayhew and Quinn, the Lions fall into that category. “They haven’t gone into those upper tiers of free agency, which leaves them with a generally lower-valued roster than most.” Fitzgerald said. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

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Telemedicine meets artificial intelligence at bedside

“This gives us an opportunity to give a piece of technology to our residents to stay as independent as possible. It will help foresee as many problems as possible; and allow communication with nurses and doctors to unnecessary trip to hospital as possible.”

By Jay Greene jgreene@crain.com

One of the most serious problems in taking care of the elderly, disabled or those with a chronic disease is getting them to take their medicine or participate in their care because of feelings of isolation, confusion, sadness or depression. Those failures cause unnecessary hospital admissions and emergency visits that drive up health care costs and lead to poorer outcomes or untimely deaths. But new technologies and devices that meld telemedicine with artificial intelligence and predictive analytics are giving hope for greater care coordination to thousands and potentially millions of people in the health care system. Dan Pompilio, CEO of SimpleC, an Atlanta-based health care technology company that earlier this year signed a joint venture contract with Jems Technology of Orion Township, tells this story about an elderly patient who used SimpleC’s “Companion,” a smart software program that encourages patients to stick to their medical care plan. John, an aging 6-foot-5-inch former offensive lineman on Michigan State University’s football team who suffered from dementia, was living in an assisted living facility in Atlanta. Day after day, John sat alone in a community room, hardly talking. Providers were intimidated by him, and family members were worried. Caregivers know patients in this condition go downhill fast. Jason Zamer, a SimpleC clinician, met with John once a week in a therapy session. He introduced him to the Companion software and slowly taught him how to use it on a computer. Zamer added pictures from John’s past, including his old MSU football team and the fight song “Victory for MSU.” After a few sessions, John began to respond, first using a few words, then speaking in complete sentences. “Then, one day, Jason walked in,” Pompilio said. “He saw Jason, looked in his eyes, stood up, and sang the Michigan State fight song. Everybody in the place knew that it was more than a good day. For us, it was a turning point. The SimpleC Companion — one of a new generation of artificial intelligence-enhanced software programs — can be installed on handheld devices like smartphones or tablets, desktops or laptop computers, said Kevin Lasser, CEO of Jems, who does business development, sales and marketing for SimpleC. Jems also manufactures telehealth devices securely transmits video images and data on patients from ambulances, emergency rooms, skilled nursing facilities and prisons. A growing number of companies in Southeast Michigan and Canada are either signing agreements to purchase Companion or entering into pilot projects to test the technology. The licensing cost is $119 per patient with volume discounting, Lasser said. Companion is sold in 15 states with more than 2,000 users.

What is the Companion? The SimpleC Companion can be installed on an intuitive touch-screen computer and activated on its own several times a day as a reminder for medications, activities and meal-

Bruce Blalock

SimpleC Companion computer application displays how a daily schedule of a patient can be programmed.

Need to know

JJJems Technology of Orion is marketing

SimpleC ’Companion’ telehealth device for homebound patients JJTelehealth technology reminds patients to take medications, follow doctor’s orders and promotes good memory JJPilot projects beginning this fall at Henry Ford Village, McLaren Health and Windsor-Essex community services

times. It also can offer mental stimulation to guard against anxiety and depression and improve brain health. Each application is custom installed so users can see their own family photographs, hear such familiar audio as favorite music and personalized messages recorded by family members or caregivers. Using an artificial intelligence platform powered by IBM’s Watson, the Companion manages chronic conditions or hospital discharge instructions. If a patient goes off track from their care plan, the device triggers notifications to family or caregivers to prevent unnecessary trips to the hospital. Lasser said the SimpleC companion has been through multiple studies at Emory University and Johns Hopkins University. It has been used by more than 2,000 patients in 10 states. “The patient puts (the program) on a smart device and it gives you 360-degree continuum of health care,” he said. “The caregiver has the application, the family and patient have the application. It is like having a million doctors and the smartest journals at your fingertips.”

Pilot projects with Companion Henry Ford Village, the largest senior living facility in Michigan with more than 900 residents in Dearborn,

has signed a contract with SimpleC to conduct a pilot program using Companion with 20 independent living residents who have chronic diseases, said Bruce Blalock, the Village’s executive director. Integrity Home Health in Troy will participate as the Village’s preferred home health provider, said company founder John Byrne. McLaren Health Management Group and about 20 of its 100 palliative care patients also will participate in a three- to six-month pilot project starting in October, CEO Bart Buxton said. For McLaren’s palliative care patients, who are homebound and on strict therapy regimens, Buxton said consistency in care is very important to extend their lives as long as possible and reduce trips to the hospital. Current care now includes phone reminders and visits from providers to encourage they stay on their therapy regimen. “We think this (system) will be more interactive. If a family says we can’t manage the in-between time, (they ask) what are our options?” Buxton said. “The only option is (hiring) private duty (nurses). We think (Companion) will give them another option.” Deb Sattler, director of Windsor-Essex Compassion Care Community, said the community also is in discussions with SimpleC Companion about testing the device in a pilot program. She said using the telehealth device could help the elderly and disabled people stay in their homes. “We hope it will help improve their quality of life as part of our program to reach the elderly, disabled or isolated,“ Sattler said. Of some 1,000 people in the community, Sattler said more than 300 have been matched with community volunteers to help them. Volunteers and family members make regular

SIMPLE C

visits to people in their homes. But the Companion device can give a sense of 24-7 support and connections outside of the regular aspects of care, she said. “It brings that human touch. I love the use of music, person pictures, gentle reminders,” she said. “People can support themselves, make decisions to help themselves. They just sometimes need a little help.” Sattler, who also is team manager of the Canadian Ministry of Health and Long Term Care, said the community hopes to start testing 10 of the devices this fall. “Probably 5 to 10 percent of the 400,000 population“ in Windsor could use a device like this, she said. If it works, Sattler said it is possible the model might be used in other communities in Canada. Blalock said he signed up to test Companion at the Village because of the potential to reduce unnecessary ambulance trips to the hospital for his residents. With 900 residents that range in age from 62 to 105, Blalock said the Village has 650 hospital admissions per year and two ambulance trips per day. “This gives us an opportunity to give a piece of technology to our residents to stay as independent as possible,” Blalock said. “It will help foresee as many problems as possible; and allow communication with nurses and doctors to unnecessary trip to hospital as possible.” Blalock said the Village hasn’t yet decided how to price Companion, either as a fee directly to the residents or baked in as part of the rent. The pilot will be test on 20 residents with congestive heart failure, diabetes and some dementia for three months, he said. “A hospitalization for an 83-yearold can be traumatic. Everybody says once they go to the hospital they are usually less than they were. We are trying to do what we can to prevent that,“ Blalock said.

Byrne, who also is a Village board member, said he is a big fan of telehealth because of how it extends caregivers into homes of his home health clients. “If we can drive more care in the home, we can keep people out of the hospital. The majority of issues are not clinical. They are social. The elder person is anxious, and just talking with the caregiver, doctor, nurses to get comfortable helps a lot,” said Byrne, who founded Integrity in 2005 after his father had a near-death experience. “I ordered home care and within 48 hours we had doctors and nurses in the home, looking after Dad. It looked like an inpatient unit more than a home,” said Byrne, adding that his mother told him: “You saved Dad’s life.” Lasser said the Companion has been shown to stimulate positive memories in patients that encourages compliance with health care orders without the use of medications. “The Companion application can improve health and reduce costs by using artificial intelligence for cognitive and behavioral health issues,”Pompilio said. The use of artificial intelligence in medical software programs is just beginning. For example, Ann Arbor-based Fifth Eye Inc. is developing software to warn medical professionals that certain patients who seem to be doing well after an operation are actually, based on almost imperceptible changes in their vital signs, at risk for serious deterioration in their conditions. Researchers at the University of Michigan, led by Mark Salamango, are using artificial intelligence to analyze patient data to show it is possible to predict if a patient is crashing, known as hemodynamic instability, Crain’s has reported. The technology combines the much better signal-tonoise ratio in current electrocardiography with machine learning and the ability of computers now to affordably process large volumes of data in real time. The NYU School of Medicine and Facebook Artificial Intelligence Research are conducting joint research to reduce the time for MRI scans. MRI scans provide a greater level of detail than other medical imaging, but it can take 15 minutes to more than an hour compared with a minute or less for X-rays and CT scans. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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

THE WEEK ON THE WEB

RUMBLINGS

Weisers donate $10 million to UM for diplomacy center

Could incentives lure more events to state?

AUGUST 31-SEPTEMBER 6 | For more, visit crainsdetroit.com

nn Arbor businessman and one-time ambassador to Slovakia Ron Weiser and his wife, Eileen, have donated $10 million to the University of Michigan for the creation of a new center focused on training international diplomats. The Weiser Diplomacy Center will become part of UM’s Gerald R. Ford School of Public Policy, with a focus on connecting students interested in pursuing a career in diplomacy with foreign policy experts. It’s expected to be the first such diplomacy-training center of its kind in the Midwest. “This is an opportunity for kids in the Midwest to stay in the Midwest to get that kind of training instead of going to the East or West coasts,” Ron Weiser told Crain’s. Ron Weiser, the current chairman of the Michigan Republican Party, served as U.S. ambassador to the Slovak Republic from December 2001 to December 2004 under President George W. Bush. “I’ve always believed that relationships between countries is the relationships between people,” said Weiser, who still goes by the title of “ambassador” in some of his professional circles. “Our face in other countries is our diplomats.” This $10 million donation is part of the $89 million total Ron Weiser, founder of the real estate management firm McKinley Associates Inc., and his wife have given to the Ann Arbor university, where Ron Weiser is an elected Republican member of the Board of Regents. The Weiser Diplomacy Center is the third center UM has named after the Weisers. In 2008, UM created the Weiser Center for Europe and Eurasia and the Weiser Center for Emerging Democracies after the couple donated $10 million to the university’s College of Literature, Science and the Arts. In 2014, the Weisers donated an additional $25 million to both centers, which are housed within the university’s International Institute. “This new initiative will help train a new generation of informed, principled and entrepreneurial students committed to international affairs,” said John Ciorciari, director of the International Policy Center at the Ford School, in a statement. “It will also help connect the academy to the world of foreign policy practice to generate new ideas for addressing the many global challenges we face. No comparable concentration of diplomatic expertise exists at any university in the Midwest.” Eileen Weiser is a UM alumnus and elected Republican member of the State Board of Education.

BUSINESS NEWS J Troy-based Hour Media Group expanded its portfolio with the acquisition of three publications on the west side of the state: the Grand Rapids Business Journal, Grand Rapids Magazine and Michigan Blue. It acquired

LON HORWEDEL

Ann Arbor-based real estate developer Ron Weiser and his wife, Eileen, have given $89 million of their personal fortune to the University of Michigan, where they’re both alums and Ron is an elected Republican member of the Board of Regents.

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

$1.1 million The federal grant awarded to the University of Michigan to help manufacturers hurt by imports.

The Lyft ride-sharing discount users of Detroit-based bike-sharing nonprofit MoGo can get under a new partnership between the two alternative transit companies.

1,000

The number of cases of water the Detroit Federation of Teachers is donating to Detroit Public Schools Community District after drinking water was shut off due to elevated copper and lead levels at some schools.

assets from the brands’ parent company, Gemini Publications. A newly formed Hour subsidiary called Gemini Media LLC will run the publications. J Some Southeast Michigan road construction projects slowed or came to a halt last Tuesday as a union lockout went into effect over a simmering summer-long labor dispute. The lockout affects unionized workers who operate heavy machinery, such as cranes and diggers, at sites across metro Detroit and Michigan. Work stoppages were continuing, as of Thursday afternoon. J Meridian, the largest Medicaid health plan in Michigan, completed its sale to Tampa-based WellCare Health Plans Inc. for the announced price of $2.5 billion. WellCare completed the transaction Sept. 1 and now is operating Meridian Health Plan of Michigan Inc., Meridian Health Plan of Illinois, Inc. and MeridianRx, a pharmacy benefit manager, as WellCare subsidiaries. The Cotton family owned the majority of Meridian. J Bob Evans selected a Redford

Township-based advertising boutique as the agency of record for its grocery products division, replacing McCann Detroit. Jekyll & Hyde Advertising is taking over the account for BEF Foods Inc., a subsidiary of Bob Evans Farms. J Quicken Loans Inc. founder Dan Gilbert is looking to exit the casino business, including properties in Cleveland, Cincinnati and Detroit, according to Bloomberg, which spoke with people familiar with his plans. Deutsche Bank and Credit Suisse are representing Gilbert’s casino company in the sale process, and Las Vegas-based Caesars Entertainment Corp. is among the possible bidders that have expressed interest in some properties, said the people, who asked not to be identified because the discussions are private. Gilbert’s Detroit-based Jack Entertainment LLC declined to comment.

etroit Metro Convention & Visitors Bureau President and CEO Larry Alexander says Michigan has an incomplete toolbox to lure the next Super Bowl or Final Four. Legislation that would create a mechanism for the state to provide funding to help attract large events to Michigan like the Super Bowl came up for discussion Thursday at the Senate Economic Development and International Investment Committee, Gongwer News Service reported last week. Alexander proposed to the committee a series of bills that would create the Large Special Events Fund, appropriate $2 million from the General Fund to the fund in the 2018-19 fiscal year for events grants, list the criteria to qualify for a grant. It would refill the fund by earmarking half the total anticipated sales, use and liquor tax revenue increase attributable to hosting large events to the fund when the state lands an

event. Alexander, who put together the proposal, said the state is losing out on the chance to host big events to other states that have the funds to attract such events. From 2005-09, downtown Detroit hosted Major League Baseball’s AllStar Game, the Super Bowl and the NCAA Men’s Basketball Final Four. But it has not hosted a major national event since then, and Alexander said the city lost out on the latest round of Final Four host sites because Michigan lacks what other states can offer. “Over the past decade, Michigan has fallen behind in the major event arena,” he said. The host committee that handled the 2009 men’s Final Four fell a few hundred thousand short of its goal, and Alexander said that has hurt the city. Thirty-one states have hosting incentives, he said, superior to “Michigan’s outdated model of just passing the hat.”

OTHER NEWS J In the wake of shutting off all drinking water to Detroit Public Schools Community District, Superintendent Nikolai Vitti is lining up a future- and past-focused task force expected to include Mona Hanna-Attisha, the famed pediatrician who worked to expose the Flint water crisis. Vitti thinks the district could afford a long-term solution on its own, he said during a tour last Wednesday of Golightly Education Center for the first week of school. The long-term solution will likely involve installing new pipeline systems, instead of replacing old ones, but that depends on the task force’s findings.

OBITUARY J Billionaire Richard DeVos, co-founder of direct-selling giant Amway, owner of the Orlando Magic and father-in-law of Education Secretary Betsy DeVos, died last Thursday at 92. DeVos was a fixture for decades in Michigan Republican politics and a vital force in the resurgence of downtown Grand Rapids. Family spokesman Nick Wasmiller said he died at his Ada home due to complications from an infection.

TIM GRALEWSKI

Vinyl-printed replicas of artwork, such as the “People of Technology” (pictured) by Tim Gralewski, will wrap eight traffic signal boxes in downtown Ann Arbor as part of the PowerArt! project..

Ann Arbor traffic signal boxes to be beautified C

lunky, gray traffic signal boxes throughout downtown Ann Arbor are set to see a colorful makeover this month. Eight winners have been selected for the PowerArt! project run by Ann Arbor-based nonprofit The Arts Alliance, according to a news release from the group. Each winner will wrap a traffic signal box with a vinyl-printed replica of their work. A jury of local artists pared down 108 pieces submitted by 41 Washtenaw County-based artists to just 12 pieces. Then, 2,400 people voted online for the final art works. Winning artists are Matthew Shlian, Leslie Sobel, Katherine Larson,

Tempest NeuCollins, John Gutoskey, Joel Henry-Fisher, Elise Beckman and Tim Gralewski. Pictures of their work can be found at The Arts Alliance website. PowerArt! started in 2015 and is produced in partnership with the Ann Arbor Downtown Development Authority and the Ann Arbor Public Art Commission with the goal of “beautifying street-level eyesores,” according to the release. The program is supported by a $15,000 grant from the Michigan Council for Arts and Cultural Affairs. Once the installations are complete later this month, downtown Ann Arbor will have a total of 33 traffic signal box wraps.

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