Business Council stresses public-private partnerships Page 3
Kocsis-LeCureux leads cable’s change Page 10
OCTOBER 8 - 14, 2018 | crainsdetroit.com
HEALTH CARE
DMC’s cardiology program faces problems
By Jay Greene jgreene@crain.com
The forced resignations of physician leaders in the Detroit Medical Center’s cardiology department add drama to a federal investigation and other woes that have beset a program once viewed as a model for emergency heart care for an underserved
population and a cash cow for the for-profit hospital system. With the recent contract terminations of three top cardiologists, the resignation of Ted Schreiber, M.D., DMC’s founding Cardiovascular Center president, and the federal investigation, the current problems have many roots that go back years.
Hospital insiders say they include difficult-to-meet production goals for heart and vascular procedures, high profit expectations by DMC parent company Tenet Healthcare Inc., layoffs of key staff when profit margins dipped and the creation of Cardio Team One in 2008 that requires 24-7 coverage by cardiologists.
But two large issues exposed weaknesses in the financially successful program, more than six sources told Crain’s. They are an investigation by the U.S. Department of Justice, launched in 2016, and what prompted the investigation: the 2014 death of Radieh SEE DMC, PAGE 26
Need to know
JJAs a federal investigation heats up, DMC terminates contracts of three top cardiologists and accepts the resignation of another JJMedical malpractice lawsuit against DMC, cardiologists shines light on problems
MANUFACTURING
WHO WINS ON JOBS?
Experts: New trade deal unlikely to boost automotive production, jobs in U.S.
By Dustin Walsh dwalsh@crain.com
White House officials are calling the new North America trade deal, the U.S.-Mexico-Canada Agreement, a paradigm-shifting model for American trade policy. Speaking about the deal last week in Washington, D.C., President Don-
ald Trump said foreign companies should consider it “a privilege to do business with us.” The administration considers the trade deal, which includes stricter automotive import requirements, a huge win in steering manufacturing back into the U.S. But some experts question whether the updates and a name change to the
Need to know JJOverseas firms may find it easier to pay up for not meeting standards or stop serving U.S. market JJOnly three vehicles imported to the U.S. are between old and new content requirement
original North American Free Trade Agreement will result in increased production in the U.S. and jobs creation. The pact, which Canada and U.S. trade negotiators agreed to last week with Mexico already in tow, calls for increased automotive content from the member countries to pass tariff-free into the U.S., a quota in im-
ports to the U.S. from Mexico and Canada and a minimum wage requirement designed to make manufacturing in the U.S. more attractive. The goal of the Trump administration was, of course, to make America first, but no one is sure just who in America is better served. SEE PACT, PAGE 29
PHOTOILLUSTRATION BY MARC DUFRESNE VIA GETTY IMAGES
LIVENGOOD | PAGE 8
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REAL ESTATE
Ramco-Gershenson downsizes Oakland County headquarters, opens NYC office By Kirk Pinho kpinho@crain.com
Ramco-Gershenson Properties Trust (NYSE: RPT) is downsizing its west Oakland County headquarters footprint and staff, and has opened a new office in New York City as part of a new vision implemented by a new CEO. The longtime Farmington Hillsbased real estate investment trust focused on retail properties opened an
office at 19 West 44th St. totaling about 6,000 square feet in the late summer. The office houses most of the company’s executive team, said a company representative who requested anonymity last month because he wasn’t authorized to speak publicly on behalf of Ramco. It currently has 30,000 square feet in Brookfield Office Park at 31500 Northwestern Highway at Middlebelt Road, a property owned by Royal
Oak-based Etkin LLC. However, the representative said Ramco will maintain just 12,000 square feet in that location, marking a notable reduction in its footprint. In addition, “less than 15” employees were affected by layoffs that were effective July 31 and all received severance packages, the representative said. It had more than 120 employees as of July 31. SEE RAMCO, PAGE 28
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MICHIGAN BRIEFS
INSIDE
From staff and wire reports. Find the full stories at crainsdetroit.com
Enbridge makes replacement deal for Line 5 with state of Michigan Michigan Gov. Rick Snyder’s administration and Canadian pipeline giant Enbridge announced an agreement last Wednesday to replace twin 65-year-old crude oil pipes that critics have long described as an environmental disaster waiting to happen in a crucial Great Lakes channel. The plan calls for decommissioning the pipes after installing a new line in a tunnel to be drilled through bedrock some 100 feet beneath the Straits of Mackinac, a more than 4-mile-wide waterway where Lakes Huron and Michigan converge. The massive engineering project is expected to take seven to 10 years to complete, at a cost of $350 million to $500 million — all of which the company would pay. In the meantime, about 23 million gallons of oil and natural gas liquids used to make propane would continue moving daily through the twin lines at the bottom of the straits. They are part of Enbridge’s Line 5, which extends 645 miles from Superior, Wis., to Sarnia, Ontario, crossing large areas of northern Michigan. The state and Enbridge described the agreement as a win-win that
eventually would get rid of the twin lines, which critics consider a time bomb that under worst-case spill scenarios could despoil the lakes and shorelines for hundreds of miles. The company insists they’re in good condition and could remain in place indefinitely but has been on the defensive in recent years following discoveries of dozens of spots where protective coating has worn off, plus damage from a ship anchor strike last April. “This answers the demand we’ve heard from the public to protect the Great Lakes and at the same time provide some consistent reliability for energy,” Keith Creagh, director of the Michigan Department of Natural Resources, told the AP. “This common-sense solution offers the greatest possible safeguards to Michigan’s waters while maintaining critical connections to ensure Michigan residents have the energy resources they need,” Snyder said. Environmental groups criticized the deal for failing to shut down the existing pipes quickly and accepting oil transit through the straits area indefinitely. The deal is reached as Snyder’s term winds down. It wasn’t immediately clear whether the next administration would have legal authority to undo the agreement. Opponents argued the agreement isn’t legally binding because it calls
CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS
Canadian pipeline giant Enbridge announced an agreement last week to replace twin 65-year-old crude oil pipes in the Straits of Mackinac.
for further negotiations on key details, including the design, construction and operation of the tunnel.
Stryker acquires surgical tools tech firm
Kalamazoo-based Stryker Corp. acquired a North Carolina-based surgical tools developer for $220 million, bolstering its neurotechnology business. The medical tech company is taking over HyperBranch Medical Technology Inc. in an all-cash transaction, according to a news release. Hyperbranch was founded in 2003 and focuses on devices made of proB:10.25” prietary polymers and cross-linked hydrogels. T:10.25” The purchase brings to Stryker’s S:9.25”
portfolio the Adherus AutoSpray Dural Sealant — one of only two FDA-approved sealants for the outermost membrane of the spinal cord and brain. It continues Stryker’s string of acquisitions related to surgical products. Last month, it announced a $190 million purchase of a San Francisco-based surgical tech company shortly after it agreed to a $1.4 billion takeover of K2M Group Holdings Inc., a major player in the spinal medical device industry.
Truck hits protesters in Flint
Several people were injured before dawn last Tuesday in Flint when a pickup collided with a group of
CALENDAR
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DEALS & DETAILS
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KEITH CRAIN
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OPINION
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OTHER VOICES
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PEOPLE
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RUMBLINGS
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WEEK ON THE WEB
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protesters calling for higher pay and the right to form unions in what police said appeared to be an accident, the Associated Press reported. Police Chief Tim Johnson said he doesn’t believe the crash near a fastfood restaurant in Flint was intentional and that the driver “seemed pretty shaken up” afterward. Johnson initially said four or five people had non-life-threatening injuries, but later said eight were hospitalized. Michigan Democratic gubernatorial candidate Gretchen Whitmer was among those participating in the protest. She wasn’t injured and a post on her Twitter account said she’s “incredibly sad that so many people were hurt.”
CORRECTION An item in the Deals and Details column on Oct. 1 had an incorrect web address for Banyan Technologies Group. It should be banyantechgroup.com
American Greetings gets a banking partnership that always means what it says. B:7”
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SPORTS BUSINESS
As NHL season begins, the story behind refresh of ‘Hockeytown’ DETROIT RED WINGS
The refreshed “Hockeytown” logo will be projected onto the Little Caesars Arena ice for Red Wings games this season rather than embedded in the ice, and will be used in signage and other marketing and branding materials.
Red Wings update famed branding as team works on what may be long-term rebuild By Bill Shea bshea@crain.com
The Detroit Red Wings opened their 2018-19 season on Thursday with a quarter-century of playoff success well behind them, and few expectations for the near future. The Red Wings, who lost 3-2 in overtime to the Columbus Blue Jackets at a less-than-full Little Caesars Arena, are firmly entrenched in what may be a long-term rebuilding process as young players such as Dylan Larkin, Anthony Mantha and rookie Filip Zadina develop while the front office sorts out the future. Oh, and a bad back has forced star
Need to know
‘Hockeytown’ branding was rolled out in 1996
Refresh aimed at solidifying fans as a community during team rebuild Logo is no longer on LCA ice, but will appear more elsewhere
Henrik Zetterberg into retirement. Tested will be the loyalty of fans spoiled by annual playoff appearances and four Stanley Cup championships from 1990-2016. Those fans are not used to mediocrity, much less sustained losing. The “Dead Things” era of the 1970s and 1980s was only a
scary bedtime story told by baby boomers, no? To gird that sense of fan community, the Red Wings have updated their famed “Hockeytown” branding in a bid to remind their followers that things used to be great and hopefully soon will be again for the local hockey community. Hockeytown isn’t a ghost town, at least not yet, and the “Hockeytown” phrase itself remains a useful marketing tool until things get better on the ice. It’s just not on the ice anymore. The Red Wings last month trotted out the refreshed “Hockeytown” logo that re-imagines the phrase in stitched
lettering that matches the names on player jerseys. It will be heavily used in the team’s TV, signage and digital marketing campaign all season, on merchandise and apparel, and will show up in many places inside Little Caesars Arena including on the dasher boards. It was removed from the ice for this season so that the iconic Winged Wheel logo could be featured alone (with four corporate advertising logos around it), the team said. “Hockeytown” as it was felt dated, the team’s top marketing executive said. “It was time for a refresh,” said Craig Turnbull, senior vice president for
ECONOMY
Elite CEOs aim for ‘mission that’s above profits’
By Dustin Walsh dwalsh@crain.com
Nearly 100 of the top business leaders in the U.S. were in Detroit last week for a meeting of The Business Council — an elite group that includes CEOs of the nation’s largest companies that aims to shape corporate contributions to society. The meeting, held Thursday at the Westin Book Cadillac downtown, was focused on expanding public-private partnerships, spurred by JPMorgan Chase & Co.’s work in Detroit. This was the first time The Business Council has held a meeting in Detroit, historically choosing cities on the West and East coasts. Among the attendees in Detroit: JPMorgan Chase & Co. CEO Jamie Dimon; Johnson & Johnson Chair-
Jamie Dimon: Helping lift up society.
Dan Gilbert: Investing brings talent.
man and CEO Alex Gorsky; Dan Gilbert, founder and chairman of Detroit’s Quicken Loans Inc.; Microsoft Corp. CEO Satya Nadella; and SalesForce.com Inc. CEO Marc Benioff and others. Since 2014, JPMorgan Chase has invested more than $107 million toward a $150 million commitment it
made to support the city’s economic recovery. The program spans from housing development to loans, grants and technical assistance for small busiAlex Gorsky: nesses and orgaUsing academic nizational help momentum. for nonprofits from JPMorgan Chase executives. It also created the Entrepreneurs of Color Fund to help minority-owned Detroit businesses gain access to working capital and, in some cases, have the liquidity needed to seek expansion opportunities. Earlier this month, JPMorgan Chase announced the creation of
Need to know
Top business leaders came to Detroit for a meeting of The Business Council Meeting's focus is expanding public-private partnerships Exec credits trend of corporate responsibility in buoying Detroit to Dan Gilbert
the $500 million AdvancingCities initiative to follow its investments in Detroit to other markets. It has already begun to mimic its work in Detroit in Chicago, Washington, D.C., and San Francisco. In a discussion before the event in Detroit, Dimon, Gorsky and Gilbert spoke to a small group of publications, including Crain’s, about the meeting. SEE MISSION, PAGE 28
marketing and communications for the Red Wings and Olympia Entertainment. “It’ll be much more featured. We’re happy with the way it came out. The reaction from guests has been very positive.” “Hockeytown” has been a backbone of the team’s branding since the expression was introduced by the Detroit office of ad agency Bozell Worldwide in 1996 to commemorate the Red Wings’ 70th anniversary. It’s become ingrained with the team, players and fans and was legitimized by the team’s playoff success and six Stanley Cup appearances. SEE HOCKEY, PAGE 25
MUST READS OF THE WEEK Eric Hipple headlines health care summit The former Lions quarterback, a prominent mentalhealth advocate, to speak at event focused on coordinating physical and mental health care. Page 5
$20 fees proposed for cell sites draw ire House advances bill that would set statewide rates; Patterson, Evans blast the idea. Page 6
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Consumers Energy seeks personal property tax cut, faces opposition
Ex H
By Chad Livengood
bshe
clivengood@crain.com
“Highest Member Satisfaction among Commercial Health Plans in Michigan”
Consumers Energy Co. is proposing that the $200 million in personal property taxes it pays annually to municipalities and schools for gas and electric transmission lines be curtailed to inflationary increases instead of wiped out completely as the utility company proposed earlier this year. The Jackson-based utility had been lobbying lawmakers to eliminate the Personal Property Tax for utility transmission assets, a proposal that was met with fierce opposition from counties, cities and school districts because it could drastically reduce their property tax revenue by an estimated $650 million annually. Consumers is seeking relief from its personal property tax bill because it is slated to double to $400 million by 2025 due to the company’s planned 10-year, multibillion-dollar statewide modernization of electric and natural gas infrastructure, said Scott McIntosh, vice president of tax for Consumers Energy. Since Consumers’ tax bill is based on an older transmission system that has mostly depreciated in value, the proposed legislation would shield the company from a higher tax liability for new electric and gas lines, substations, transformers, utility poles and gas storage facilities throughout the state. “What we’re saying now is not only is (the tax) not going to go away, but we’re guaranteeing that you’re going to get an inflationary increase each year,” said McIntosh, describing the company’s message to municipalities and schools. But two groups representing cities and counties in Michigan remain opposed to the legislation because it would further erode local property tax bases that have not recovered from the historic collapse of property values in the Great Recession. “Anything that jeopardizes local tax base, jeopardizes public safety, jeopardizes road funding, jeopardizes infrastructure,” said Chris Hackbarth, director of state and federal affairs with the Michigan Municipal League. Jen Smith, director of government relations for the Michigan Association of School Boards, said Consumers’ counterproposal would still reduce the taxable value of utility property that can be a sizeable piece of the tax base in some school districts. “No matter how you look at it, you’re trying to cut off an extremely large revenue stream and the growth behind it,” Smith said. “You’re really harming the School Aid Fund for all districts.” Consumers’ proposal to make its new and higher-value transmission system subject to the taxable value of its old, depreciated system is effectively trying to tax “ghost property,” said Deena Bosworth, director of governmental affairs with the Michigan Association of Counties. “How do you tax something that’s
BANKRUPTCIES The following businesses filed for bankruptcy protection in U.S. Bankruptcy Court in Detroit Sept. 28 - Oct. 5. Under Chapter 11, a company files for reorganization. Chapter 7 involves total liquidation. J Headfirst Printing LLC, 14680 Jib St., Plymouth, voluntary Chapter 7. Assets: $22,802.77; Liabilities: $174,453.
The future of the Personal Property Tax on utility and commercial property could be the next big battle in Lansing
Need to know
JJConsumers Energy Co. proposes
personal property taxes it pays annually be curtailed to inflationary increases JJUtility had been lobbying lawmakers JJIts personal property tax bill slated to double to $400 million by 2025
not there anymore?” Bosworth said. “I still can’t wrap my head around that.” Based on the company’s investment plans, Consumers projects its tax bill would rise by 10 percent annually for a decade without some sort of tax relief, McIntosh said. “We recognize schools are more expensive to run each year, local governments are more to run each year, but not 10 percent more per year,” he said. The future of the Personal Property Tax on utility and commercial property could be the next big battle in Lansing over taxation of businesses after the tax was eliminated for industrial property. Attorney General Bill Schuette, the Republican gubernatorial nominee, said last week he would make it a “goal” to eliminate the PPT for utilities and commercial property if he’s elected governor on Nov. 6. “We eliminated it on the industrial side (but) we’ve not done that on commercial and utility. I think we need to do that as well,” Schuette said in an interview with Crain's. Schuette did not say how the revenue would replaced for municipalities and schools. But he said elimination of the PPT would be part of his larger tax plan to slash the personal income tax from 4.25 percent to 3.9 percent and make pension and retirement income exempt from the income tax again. Schuette’s proposed income tax cuts would reduce the state’s $10 billion general fund by an estimated $1.3 billion. Schuette has not identified how he would pay for that tax cut either, other than saying that state agencies are “going to have to give a little bit.”
Lobbying lawmakers In 2014, voters approved phasing out personal property taxes on industrial equipment and eliminated the PPT on equipment for small businesses that had a cash value of less than $80,000. In that tax cut, Gov. Rick Snyder’s administration and the Legislature got voters to approve earmarking part of the 6 percent use tax businesses pay in lieu of the sales tax to replace the loss property tax revenue for municipalities. Municipalities and school groups mostly went along with the personal
property tax cut for industrial property as proponents argued the reform was needed to retain manufacturing businesses in the state. But on May 29, state Sen. John Proos, R-St. Joseph, introduced legislation to eliminate the personal property tax for Consumers, DTE Energy, ITC Holdings Inc. and other utility companies. Eight days later, the Republican-controlled Senate Finance Committee quickly passed the legislation over objections from the state Treasury Department and lobbyists for school districts and municipalities. The legislation did not apply to electric generation plants. A total repeal of the PPT on utility property would reduce state education tax revenue for K-12 schools by $76.6 million and leave local municipalities with $576.3 million in less revenue. Lawmakers would have to come up with $243 million for the School Aid Fund to maintain per-pupil funding guarantees, according to the Senate Fiscal Agency. “It would cut off that revenue stream with no replacement for it,” Smith said. “It’s too big of a cut.” No replacement revenue has been proposed for SB1031. Over the summer, Proos convened a workgroup with stakeholders because of concerns over the lost tax revenue. It’s unclear what Consumers’ counterproposal would do to long-term revenue prospects for schools and local units of government. No new fiscal analysis has been prepared. But Consumers is lobbying lawmakers for passage of a Personal Property Tax bill during the post-election lameduck session. DTE Energy Co. supported the original legislation and is open to changing it, spokesman Peter Ternes said. Proos could not be reached for comment.
Need for relief questioned Lobbyists for municipal groups questioned why Consumers and DTE need tax relief for personal property when they can pass along their tax bills to customers with approval from the Public Service Commission. “They’re not going anywhere,” Bosworth said. “And they haven’t guaranteed us they’re not going to have rate increases on ratepayers.” The taxes Consumers and DTE Energy pay routinely factor into the rates the utility companies charge residential, commercial and industrial customers in Michigan. In July, the Public Service Commission approved $270 million in electricity rate cuts for customers of both companies because of tax savings DTE and Consumers are getting from the corporate income tax cut President Donald Trump signed in December. In the debate over eliminating the PPT for industrial equipment, business groups and the Snyder administration argued that the tax made Michigan uncompetitive with other states that don’t tax the value of manufacturing machines. “With utilities, that equipment doesn’t move,” Hackbarth said. “It’s not like a business that can take their drill presses and move them across state lines.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood
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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 // O C T O B E R 8 , 2 0 1 8
Ex-Lions QB Eric Hipple to headline Health Care Leadership Summit By Bill Shea bshea@crain.com
Eric Hipple took up yoga three months ago. It’s part of the rock-jawed 61-year-old Texas native’s regimen to keep his mind and body sound after spending decades of his life getting battered on football fields, managing depression, business struggles and the death of his teenage son. Hipple may still be most commonly known as a Detroit Lions quarterback from 1980-89, but he’s subsequently carved out a post-NFL reputation for his advocacy work in suicide prevention and mental health treatment. That’s why Crain’s chose Hipple to be the keynote speaker during its Health Care Leadership Summit on Oct. 15 in Dearborn. This year’s summit will examine not just how Michigan’s $2 billion in Medicaid mental health funding should flow, but how best to tie together and manage health care for both body and mind across the spectrum of our health care system. Hipple’s journey to mental health advocate started in the 1970s on high school football fields in Southern California and at Utah State. The Lions took Hipple in the fourth round of the 1980 draft after his college career, where he earned a business administration degree. It was while at Utah State where Hipple first experienced mental health issues. “I missed the third quarter of my junior year of college. I couldn’t get out of bed,” he said. Depression runs in his family, Hipple said. He would make his first Lions start on “Monday Night Football” against the Chicago Bears at the Pontiac Silverdome in October 1981, and it was one of the greatest quarterback debuts in NFL history: He threw four touchdown passes and 336 yards, and ran for two more scores, in the 48-17 victory. He would go on to share quarterback duties with Gary Danielson, Chuck Long and others through the 1980s, and said he believes that if an injury hadn’t sidelined him from the 1983 playoffs, the Lions would have gone to the Super Bowl. For pro football die-hards, Hipple may be best known for taking a devastating hit in 1985 from Tampa Bay safety Scot Brantley. Hipple’s helmet skyrocketed from his head and he was left dazed on the ground. That sort of hit is illegal in today’s NFL, but was a staple of the game back then. Research suggests such hits may have led to degenerative brain disease that contributes to depression and other health issues. Hipple, who missed parts of his Lions career due to thumb and ankle injuries, recently underwent a comprehensive battery of physical and mental tests at the Cleveland Clinic as part of a program with the National Football League Players Association to monitor ex-players’ health. His results were mostly a relief after seeing how the game has negatively affected so many former players, especially brain issues, Hipple said. “I’m doing pretty good. There’s probably a couple of memory deficiencies that could be attributed to different things,” he said. Age affects people who never played sports or went to war. Regardless of what triggered a problem, getting access to helpful resources is what’s important, Hipple said. “It doesn’t matter which one it is as long as you have therapy and medication and treatment,” he said. For Hipple, he said he has some prescriptions that help depression, and he’s willing to explore alternative treatments that could benefit anyone. That includes the yoga. “If there’s merit to it, why not have it available,” he said. The transition out of pro football can be traumatic for some players, leading to depression and substance abuse — a situation made worse by the vast sums players get paid today compared with Hipple’s era. Hipple’s last contract with the Lions paid him $400,000, he said. By contrast, Detroit’s current quarterback, Matthew Stafford, has a $135 million contract. “It doesn’t matter how much money you
“It doesn’t matter how much money you have. You can feel loss and unconnected and with no purpose.” Eric Hipple
Crain’s Health Care Leadership Summit to examine mental, physical care coordination JJThe theme of Crain's Health Care Leadership Summit is coordinating mental and physical health care, a question that has taken on added importance as the state debates how best to do so in its Medicaid system. JJBehavioral health care has become more and more important amid the opioid crisis and other issues. The summit will examine these issues, look at how other states have handled them and what's ahead for Michigan on these questions that touch every corner of the health care business. JJSpeakers and panelists at the summit include Wayne County Executive Warren Evans, Health and Human Services Director Nick Lyon and Meridian President Sean Kendall. JJThe closing keynote will be given by Eric Hipple, the former Detroit Lions quarterback who has become a prominent advocate on mental health issues. JJThe summit takes place Monday, Oct. 15, at The Henry, 300 Town Center Drive, Dearborn. Tickets are available at crainsdetroit.com/HCSummit.
have. You can feel loss and unconnected and with no purpose,” Hipple said. “They have the money, but they’re missing the support system.” Notably, Hipple has helped friend and fellow former Lions quarterback Erik Kramer, who also lost a son and struggled through depression and a high-profile suicide attempt. After his own career ended, Hipple did some NFL broadcast work, but mainly he used his football earnings to launch an insurance business career, working with clients such as GE Capital on credit and health insurance for auto dealers, he said. “I was making more money from that than from football,” he said. When GE Capital pulled out in the late 1990s, Hipple lost 80 percent of his business. His 15-year-old son committed suicide in 2000, and Hipple further spiraled into depression and drink. A suicide attempt followed. He eventually found the right treatment that led to his current career of helping people with mental health needs, from suicide prevention to brain injury recovery. He spent 11 years working at the University of Michigan Comprehensive Depression Center. Today, he works full-time doing outreach, fundraising, and research for the Ann Arbor-based Eisenhower Center’s “After the Impact” program that treats veterans and ex-NFL players who require help with health/behavioral issues that stem from post-concussion and post-traumatic stress syndromes and other brain-related issues. He’s often booked to speak and appear on radio and TV programs about depression and suicide prevention. He also published a memoir called Real Men Do Cry in 2008. Hipple’s mental health work has garnered major honors such as the 2008 Life Saver Achievement Award given by the American Foundation for Suicide Prevention, the University of Michigan 2015 Neubacher Award for his work with stigmas associated with disabilities and the Detroit Lions 2010 Courage House Award. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19
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Patterson, Evans blast $20 fees for 5G antennas in House bill By Chad Livengood clivengood@crain.com
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Michigan’s #1 Financial Advisor* Charles C. Zhang CFP®, MBA, MSFS, ChFC, CLU Managing Partner
Charles was ranked #8 on Forbes’ list of America’s Top Wealth Advisors and is the highest ranked Fee-Only financial advisor on the list.**
A Michigan House committee advanced legislation last week that would cap fees and create a universal regulatory scheme for the deployment of faster mobile broadband in Michigan over the objections of Oakland County Executive L. Brooks Patterson and Wayne County Executive Warren Evans. Senate Bill 637 would establish the Small Wireless Communications Facilities Deployment Act and create guidelines for telecommunications companies to use infrastructure in public rights-of-way such as street and traffic light poles for mounting short-distance cellular antennas to improve voice and data connections. Patterson, Evans and other municipal leaders oppose the legislation because it would limit counties, cities and townships to charging telecom companies $20 annually for the use of each publicly owned utility pole. The bill would let counties charge cell phone providers $125 annually for installing the cellular antennas on their own poles located in the public right-of-way. The bill would prohibit municipalities from setting their own annual lease rates and permit and zoning fees as is currently allowed for leasing public space for cell towers. “Ultimately, this legislation equates to a massive giveaway of taxpayer-funded infrastructure to multi-billion dollar companies for pennies on the dollars and is not in the best interest of those we represent,” Evans and Patterson wrote in a letter submitted Thursday to the House Energy Policy Committee. Under the legislation, the $20 fee could be increased by 10 percent every five years. Evans and Patterson dubbed the fee structure a form of state government-mandated “rent control.” Unlike traditional cellular towers that provide wireless signal for dozens of miles, the small cell wireless technology requires multiple antennas to cover areas ranging from 10 yards to two miles.
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www.zhangfinancial.com Assets under custody of LPL Financial and TD Ameritrade. *As reported in Barron’s March 10, 2018. Rankings based on assets under management, revenue generated for the advisors’ firms, quality of practices, and other factors. **As reported in Forbes September 26, 2017. The rankings, developed by Shook Research, are based on in-person and telephone due diligence meetings and a ranking algorithm for advisors who have a minimum of seven years of experience. Other factors include client retention, industry experience, compliance records, firm nominations, assets under management, revenue generated for their firms, and other factors. Minimum Investment Requirement: $1,000,000 in Michigan/$2,000,000 outside of Michigan.
JJMichigan House Energy Policy
Committee approves guidelines for emerging 5G wireless technology JJOakland and Wayne county officials opposed to fee structure JJOfficials argue the legislation will subsidize telecommunication companies with road funding
L. Brooks Patterson: Opposes plan.
Warren Evans: Wrote joint letter in opposition.
“This means that a large number of small cells must be deployed in order for them to be effective. It is believed that creating a dense network of small cells that are placed on existing infrastructure ultimately will eliminate the need for further cell tower construction,” the Senate Fiscal Agency wrote in an analysis of the legislation earlier this year. The telecommunications industry has been developing the small cellular antennas as it prepares to deploy fifth-generation, or 5G, mobile broadband frequencies. “We do want the technology,” said Phil Bertolini, chief information officer and deputy county executive for Oakland County. “We just want the costs recouped.” Dennis Kolar, managing director of the Oakland County Road Commission, told legislators Thursday that the $20 annual fee won’t cover the cost of county employees or electricians to supervise the installation of the wireless antennas. “I think it’s reasonable to say there’s something wrong with that rate,” Kolar said. “This is fraught with additional costs for local agencies — we’ll be subsidizing billion-dollar
companies with public dollars.” Oakland County is in the middle of negotiating a contract with Sprint Corp. for the wireless cell phone company to install 250 short-distance cellular antennas and pay the county $250,000 annually for use of publicly owned light poles and infrastructure, Kolar said. Wayne County is negotiating a contract with Naperville, Ill.-based Neo Network Development Inc. for a “commercially reasonable rate near $1,500 annually for each small cell installation,” according to Evans and Patterson’s letter. “Passage of this legislation will be taking revenue the counties are set to receive through this contract and redistributing it to corporations already poised to profit (from) this new technology,” Evans and Patterson wrote. “What is worse is the aforementioned strain expected on existing revenues. That is unconscionable, particularly given the current restraints already in place in Michigan’s broken municipal finance system.” Kolar said the added cost would leave Oakland County with less money for road repairs and maintenance. “That means every time a resident of Michigan fills up their tank or pays their vehicle registration fees, a small portion of that will be used to subsidize these companies,” Kolar said. The House Energy Policy Committee voted 15-4 to send the legislation to the House floor, with some representatives saying the need for technology for cellular customers outweighs the costs municipalities may incur. “My residents are begging for this,” said state Rep. Beau LaFave, a Republican from the Upper Peninsula, where cellular coverage is spotty. “We need this technology across the state of Michigan. And it’s going to be very difficult for companies to invest in the future if every single county and township has wildly different fees.” Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood
Mobility Week to show off Detroit innovation By Dustin Walsh
Need to know
Detroit’s vision of trading in its moniker of the Motor City for the Mobility City is buoyed by several coordinated events through this week. Mobility Week Detroit was set to kick off Sunday at Motor City Casino with the 8th World Research Congress on vision and driving, focusing on the impact of autonomous vehicles on health care and wellness. The event, which runs through Wednesday and is sponsored by Henry Ford Health System, will examine how physicians and scientists can aid in automotive design, how mobility influences medicine and more. The week continues on Monday with a panel at the Detroit Regional Chamber on the rise of mobility as a service, featuring Elliot Darvick, general manager of the Michigan and Ohio market for Lyft; Mark de la Vergne, chief of mobility innovation for the city of Detroit; and Lisa Nusz-
driverless cars, startups, health care, more
dwalsh@crain.com
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Need to know
JJDemonstrations, events focus on
JJFour-day CSforAll Summit, national computer science education symposium, is at Wayne State University JJPinnacle of week is free, public Detroit Moves Festival in Spirit Plaza
kowski, founder and executive director of Detroit’s bike share MoGo. The four-day CSforAll Summit, a national computer science education symposium, kicks off Monday at Wayne State University. Tuesday at the Detroit Film Theater will be Techstars Mobiliy Accelerator Demo Day, which is the largest single-day startup event in the state. The 2018 MichAuto Summit, held Wednesday at The Beacon event space at One Woodward Avenue, is a daylong program featuring speakers from Ford Motor Co., Lyft, Inteva Products, Toyota North America and more.
The highlight of the week will be the two-day Detroit Moves Festival held in Spirit Plaza Oct. 10-11. The free event, presented by the Quicken Loans Community Fund, will feature demonstrations by General Motors Co.’s Maven, Ford’s Chariot, May Mobility, MoGo, Airspace Experience Technologies and America’s Automotive Trust, and more. “This isn’t just an industry show,” said Glenn Stevens, executive director of MichAuto and an organizer of the events. “We need to connect the public, consumers and industry together with these technologies.” Crain’s Detroit Business is a sponsor of the event, and the Detroit Regional Chamber is helping produce it. Organizers expect around 1,000 people to attend the Detroit Moves event over the two days. Hundreds more are expected to attend the other events throughout the week. For more information, go to mobilityweekdetroit.com.
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OPINION COMMENTARY
It is a fragile recovery
I
t is sad the way old habits die hard. Not all that long ago, we had a mayor who was a prime example of vivid corruption throughout the government, and both city and county personnel always seemed to have the feeling that it was their privilege and maybe even their right to get their share of kickbacks and bribes. It was simply a way of life for politicians. But somehow bankruptcy and indictments seemed to make a difference. Our community, which was at the bottom of everyone’s lists, has been slowly but surely crawling its way back. Today we have had balanced budgets for several years and a growing reputation nationally. Everyone looks at the revival of Detroit and it seeking lessons from it. But we can’t let our diligence and oversight lapse. We are already seeing all the signs of all those bad habits popping up again all over Southeast Michigan. Bribery seems to be the worst problem. Whether it is Detroit City Council or Macomb County, it is happening and needs to be publicly shut down immediately. The leadership of Southeast Michigan has to immediately realize that all the progress that has been made
KEITH CRAIN Editor-in-chief
could be swept away quickly if this plague is not addressed by the political leadership right now. Southeast Michigan’s corruption seems to have been primarily squelched by a couple of women: Candace Miller, who is cleaning up Macomb County, and our recently retired Eastern Michigan U.S. Attorney Barbara McQuade, who put our mayor behind bars. Our recovery is fragile, and the temptation to stumble back into bad habits is very strong. If our leaders want to see all the progress go away overnight, then they should remain silent and let this cancer again grow out of control. We need to see leadership come out against this corruption today, and it needs to start now.
In Colorado, business backs redistricting reform; in Michigan, not so much
I
n Colorado, there’s a groundswell of support this fall from statewide and local business groups to take the power of drawing legislative boundaries out of the hands of politicians with an inherit self-interest in the process. Two constitutional amendments on Colorado’s ballot next month creating a commission of ordinary voters to redraw legislative districts every 10 years has been endorsed by Colorado’s state chamber of commerce, the state’s business roundtable group of influential CEOs and the local chambers of commerce in Denver, Colorado Springs and 14 other communities. Trade groups in Colorado representing auto dealers, homebuilders, infrastructure construction companies, skilled trades contractors, Realtors and bankers are all backing the ballot measure. Even the Colorado Farm Bureau is in favor of redistricting reform. The reason? It’s good for the business climate of the state if legislative seats are actually competitive and there are higher-quality leaders serving in those posts, said Shawn Martini, vice president of advocacy for the Colorado Farm Bureau. “To the extent that we can work to get better outcomes and potentially limit the amount of political division that we always have, that’s certainly better for the economy,” Martini said. In Michigan, it’s a different story. With the exception of the Ann Arbor/ Ypsilanti Regional Chamber, every major business group here is either neutral or opposed to letting an independent commission draw boundary lines instead of the current practice of politi-
CHAD LIVENGOOD clivengood@crain.com
cians picking their voters. “I don’t think there was a strong consensus on either side, so we decided not to take a position,” said Brad Williams, vice president of government affairs for the Detroit Regional Chamber. It’s a curious absence of leadership by the business community, since it is business leaders who have been striking out in recent years trying to get a polarized Legislature to get serious about make-or-break economic issues like fixing Michigan’s broken education system and transportation infrastructure. The Michigan Chamber of Commerce went all the way to the state Supreme Court in an attempt to get a citizen-led anti-gerrymandering proposal tossed off the ballot. In a surprising move, the state’s high court let the Voters Not Politicians proposal go on the ballot — rejecting the chamber’s legal challenge to the sweeping nature of the proposed changes to the state Constitution. The state chamber is still opposed to the redistricting measure based on how it changes the constitution and grants this new commission a budgetary “blank check” and would “severely limit” legal challenges to the new maps,
said Rich Studley, president and CEO of the Michigan Chamber. But the group is not actively campaigning against Proposal 2 and is focusing on races for governor, the Legislature and U.S. Senate, Studley said. “The feeling here at the Michigan Chamber is this is the year we have more challenges and opportunities than we have time and money,” Studley said. “Sometimes you’ve just got to prioritize.” The Voters Not Politicians group, which started as a millennial voter’s Facebook rant about gerrymandering and morphed into a remarkable grassroots machine, is now operating with a coalition that looks more like a band of “good-government” organizations and Democrats (who have been out of power in Lansing for the past eight years). Sitting on the sidelines are the state’s business groups, which have largely benefited from a Republican-dominated Legislature. But those benefits arguably have hinged on having legislative boundaries that ensured Republicans remained in power. Documents and sworn depositions dredged up in an ongoing federal lawsuit over the GOP-controlled Legislature’s 2011 district maps have revealed the heavy hand the Michigan Chamber in particular had in shaping districts to keep Republicans in power. And perhaps power — being in power and maintaining it — is what makes the political dynamics of redistricting reform in Michigan different from Colorado, which has a divided government of a Republican-run Senate and a Democratic governor and House. In Michigan, redistricting has been
the political tool used by the party in power to essentially rig a handful of legislative districts in their favor and draw less-favorable boundaries for political opponents. It has led to some of the strangest shaped districts, such as the notorious 14th Congressional District, which creatively connects southwest Detroit with Pontiac by snaking through Wayne and Oakland counties. This blatant gerrymandering breeds cynicism about government, which in turn breeds political gridlock. In recent years, there has been a lot of hand-wringing in the business community about the need for more political civility and how the Legislature feels increasingly dysfunctional on advancing an agenda to improve the human and physical infrastructure needed to grow Michigan’s economy (see: roads, third-grade reading test scores). That discussion inevitably always leads back to term limits, a voter-imposed constitutional amendment that drains the Legislature of institutional knowledge every two years. Yet, no one has tried to repeal them. That’s because outside Lansing and the Detroit chamber’s annual Mackinac Policy Conference, term limits seem to remain popular among voters. Proponents of Proposal 2 contend the citizen-run redistricting process will produce legislative districts that will at least make those seats competitive in general elections. That means Democratic and Republican politicians would have to leave their respective tribes because they would no longer be guaranteed a seat after winning a narrow plurality in a multi-candidate primary. Winning the
primary is essentially winning the election for more than half of the seats in Michigan’s Legislature. In Colorado, which also has term limits, getting the politicians out of the business of drawing legislative boundaries is seen as a way to make races more competitive in general elections. “We think that it’s critical that our congressional and legislative districts reflect our communities,” said Mizraim Cordero, vice president of governmental relations for the Denver Metro Chamber of Commerce. “Gerrymandering is a failed experiment.” If Democrats really have a wave election building and can overcome the electoral advantages Republicans built into their House and Senate boundaries, Michigan government could be divided again next year. Democrats’ best chance is to win back the House (where Republicans hold a 63-47 majority) and narrow the GOP’s 27-11 supermajority in the Senate. That would set the stage for a big political fight in 2020 because the party in power on Jan. 1, 2021, will have the redistricting pen in its hand. Unless voters take it away Nov. 6. Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood
More on WJR Hear Crain’s Group Publisher Mary Kramer and Managing Editor Michael Lee talk about the week’s stories every Monday morning on WJR 760 AM’s Paul W. Smith Show.
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It is your father’s car company: Why Cadillac’s NYC move failed N
o one who has ever worked in Detroit’s auto manufacturing sector could possibly be surprised by GM bringing Cadillac back home after a four-year foray in trendy Manhattan. In fact, it’s much the same dynamic that prompted Ford under Jacques Nasser to move Lincoln to Irvine, Calif., and then bring the luxury Premier Automotive Group — Aston-Martin, Jaguar, Land Rover, Volvo and Lincoln — together in that same venue. That was 1999. Seven years later, with Ford now under Alan Mulally’s leadership, the Premier Auto Group was dissolved, Lincoln returned to Dearborn, and the other brands were sold at bargain prices compared to their acquisition cost. Management failure? No doubt, but it’s not difficult to understand their thinking in wanting to bring younger buyers, a more Euro luxury image and trendiness to aging brands mostly purchased and leased by aging customers. After all, as the famous Detroit maxim goes: “You can sell an old man a young man’s car, but you can’t sell a young man an old man’s car.” But while wanting to transform a vehicle preferred by older buyers into one desired by younger ones is understandable, success is rare, and both companies made it near impossible. Cadillac’s and Lincoln’s coastal relocations consisted of small staff numbers — 110 for Cadillac and 90 for Lincoln — most of whom were marketing, sales and communications specialists. What remained in Detroit were the real power functions: design, engineering, finance, and, most importantly, the executive decision-making group. And any trendy cachet the companies hoped to earn by the moves was largely illusory, fueled by purchased advertising and sponsored events but rarely if ever yielding spontaneous brand- or consumer-generated response. Castigating domestic OEM leadership is a time-honored Detroit sport, but in this case that’s overly simplistic because what the domestics do well, they do really well — trucks, for example, and more often
TALK ON THE WEB Re: Keith Crain: Time to get ready for winter Does anyone have usage statistics so we can take emotion out of the debate? Something along the line of users per mile on the car and bike sections of the road, preferably for each hour of the day but I’d be happy with an average over a 24-hour period. MarkYTH I liked the idea of bike lanes when I thought they would be totally separate from the roads, like in the Netherlands. Having bike lanes as part of the road is unsafe for cyclists and a headache for motorists. Silver Fang Good point. How about we spend less money on expressways and get some decent commuter train service? Then all us bikers will be able to get through winter without wasting tons of money and polluting the city. Christine Laing
OTHER VOICES Gerald Schorin
than not, sedans. That’s because trucks and sedans are heart-of-themarket mass production products. They speak to Detroit and middle American values. They’re driven and understood by all of us, includ-
ing GM and Ford executives and employees who were born, went to school and reside in Michigan. And the intuitive understanding we have about a Ford F-150 or Chevy Silverado doesn’t quite extend to a small car or a true sports car or a luxury sedan that might appeal to someone in his or her 30s or 40s. Those just aren’t a core part of our vehicular DNA. When Sergio Marchionne’s Fiat acquired Chrysler from the government’s TARP program in 2011, he understood us better than we ourselves did. He didn’t move Dodge to Turin, Italy; or task the company with producing a homegrown ver-
sion of the Fiat Spider; or change the dress code to all black. Instead, he encouraged Chrysler to double down on Detroit — on who we are, what we stand for, what we produce. Which is why instead of “not your father’s Chrysler” advertising, we got “imported from Detroit” and for Dodge, new versions of the Dodge brothers. New leadership, CAFE legislation, bankruptcy, disruptive technologies, ownership changes, autonomous vehicles — the domestic OEMs and their leaders have seen it all. But locating their brands in Irvine or Soho makes as much sense as having tried to move Oldsmobile
to Seattle or Pontiac to Cap Ferrat. The inescapable conclusion is, for all homegrown OEMs, we are your father’s car company. Gerald Schorin has written executive speeches and marketing programs for the leadership of Cadillac, Oldsmobile, Pontiac, Ford Division, Lincoln-Mercury, Jaguar and numerous others. He was formerly associate professor of advertising at Michigan State University, an ad agency creative director and chief marketing officer of Fireman’s Fund Mortgage Corp. and colleges and universities, including the University of Michigan Law School.
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Lisa Kocsis-LeCureux is the vice president of project management for Comcast’s Heartland Region, which is headquartered in Plymouth.
ALI LAPETINA
WOMEN IN LEADERSHIP
Leading change in the evolving cable industry By Rachelle Damico
Special to Crain’s Detroit Business
Lisa Kocsis-LeCureux is the vice president of project management for Comcast’s Heartland Region, which is headquartered in Plymouth and includes Michigan, Indiana and Kentucky. In her role, Kocsis-LeCureux strategizes, plans and executes Comcast’s new product and program launches and leads projects across the region. Major projects include Comcast Business’ partnership with the City of Detroit on Project Greenlight, the Detroit Police Department’s real-time crime monitoring system, which the department has credited with decreasing crime for participating businesses. She also led the team that provided a high-speed fiber-based Wi-Fi network for Little Caesars Arena. Currently, Kocsis-LeCureux is managing the deployment of a new fiber network in Detroit’s Brush Park neighborhood. Kocsis-LeCureux received her bachelor’s degree in marketing from Michigan State University. She began her career in 1990 as an administrative assistant at United Cable TV, a cable provider in East Lansing. She worked for several cable companies afterwards, including TCI Communications, where she assisted with marketing and product
“Many times women go into meetings and are afraid they’ll be looked down on because they are female. You have to hold your own, speak your voice, and trust that you’re going to be successful.” launches for its cable system. She also worked as a regional manager for AT&T Broadband. Kocsis-LeCureux joined Comcast in 2001 as a new products manager before working her way up to her current role. She has been in the cable industry for about 28 years. This interview has been edited and condensed. How did you get involved in the cable industry?
The summer after my sophomore year at MSU, I found a job as an administrative assistant for United Cable. A perk was that I received free cable, and I thought that was the greatest thing. I saw the industry evolve and I liked that every day
was different. Technology was changing, and I found it all very fascinating and exciting. I was working at TCI when we launched the Sega Channel (an online video game service TCI and Time Warner Cable provided in 1994 for the Genesis video game console). I thought it was the coolest thing that we were launching an internet video game system. I realized the industry wasn’t just TV. At that point I could see how it was going to change the future. I was fortunate enough to move within the ranks and given opportunities to dabble into different aspects in the industry. What’s your average day to day like?
It’s a lot of problem solving and collaborating with peers on how to make a project run successfully. Every department plays a role when we come out with a new product or service. I make sure everyone is on the same page, doing what they need to do and communicating with each other so it’s successful for our customers. A lot of people think project management means that we check boxes to make sure a task is done, but many times we have to shift direction. It’s understanding every facet of the project to make sure that everyone
has what they need to get things done. What has been the most challenging part of your career?
The evolving marketplace. The cable industry has been through many different acquisitions and trades. I’ve worked for six or seven cable companies where the organization changed internally — meaning structure, job roles and leadership changes. There was a 10-year stretch where I’d come into the office and wonder if I’d have a job that day. I’ve worked for organizations where we knew we were not going to succeed. They succeeded by nature of their market share, or we knew at some point that it would be on the acquisition block because their metrics weren’t where they should be. The result is that they were making cuts that were trailing back to their employees and the customers. They stopped evolving with the technology because it was costly. On the flip side, Comcast is an amazing company because of the investments they’re making in ensuring that our products and services are meeting the changing environment. Were there any early leadership challenges in your career?
Early in my career, I had a boss that felt that since I was in a director
position under them, I was also their administrative assistant. I started taking on a lot of tasks that were not within my job description. That person had a different way of looking at it, but once I had a one-on-one with them I spoke my mind about what I was feeling. That individual had no clue they were utilizing me in that fashion. I’ve dealt with some stereotypes as a female in a very male-dominated industry, but I learned from it. I make sure I’m present, my voice is heard, and I gained respect and built trust with those leaders. Many times women go into meetings and are afraid they’ll be looked down on because they are female. You have to hold your own, speak your voice, and trust that you’re going to be successful. Where do you think the industry is headed in the future?
It will always evolve. The way we consume video product will likely change dramatically in the next five years. Consumers and businesses are connecting more and more devices to each other, so their need for fast, reliable bandwidth continues to increase. Our reliance on the internet, the internet platform and Wi-Fi in particular will continue to increase at a steadfast rate.
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Semifinalists named for $1 million Accelerate Michigan By Kurt Nagl knagl@crain.com
An Airbnb for empty car seats, a cavity-diagnosis tool and an app for gaining weight are among 24 semifinalists set to duke it out for a share of $1 million in the ninth annual Accelerate Michigan Innovation Competition. The startups were selected from a list of 300 applicants and chosen “based on innovation, business development and customer traction,” according to a Wednesday announcement. More than 70 venture capitalists and community leaders helped to whittle down the list for the pitch competition. Companies hail from across Michigan as well as other states, including New York and Kentucky, but all have a presence in Michigan. Most are focused on information technology and health care. The competition launched in 2010, and its winners have hired more than 1,000 people and attracted more than $650 million in investment, organizers say. In addition to the top overall prizes, additional sector-specific prizes include the Mission Throttle Social Enterprise Prize, the Lawrence Technological University Hardware Prize and the Ralph C. Wilson Jr. Foundation Caregiver prize. Winners will be announced Nov. 13 at the Lexus Velodrome in Detroit. Tickets are available at eventbrite.com. Following is the list of semifinalists, as listed on the news release: JJArroyo Networks, based in Houghton, provides cloud-based network security through an AI-driven network function virtualization platform. JJBulk, based in Detroit, provides a fitness app that teaches beginners how to gain weight. JJBlue Newt Software Technologies, based in Ann Arbor, creates internet-of-things software applications that deliver exceptional insights. JJBrandXR, based in Ann Arbor, provides no-code software that makes it easy for businesses to create and publish augmented, virtual and mixed reality. JJCarol Health, based in Grand Rapids, delivers affordable and accessible skilled nursing care to homes starting at $35 and in as little as an hour. JJCelant Innovations, based in Ann Arbor, automates the production of legal documents for legal professionals. JJDerq, based in Detroit, provides patented artificial intelligence and V2X technology to predict and prevent crashes to save lives. JJDigitouch Health, based in Valhalla, N.Y., enables blood pressure monitoring with clinical accuracy by pressing a button on mobile devices. JJDynamo Metrics, based in Detroit, provides cloud-based software-as-a-service products that aggregate and translate property data. JJFluity, based in Ann Arbor, provides an SaaS platform for manufacturers to quote jobs and enter production in five minutes. JJGreenMark Biomedical Inc., based in East Lansing, diagnoses early-stage cavities and develops a painless way to treat them without a dentist’s drill. JJInductive Intelligence, based in
Need to know
JJSemifinalists chosen from list of 300 applicants JJStartups from across Michigan and beyond JJWinners to be named Nov. 13 in Detroit
Ada, makes it possible to use a wireless phone charger to conveniently, consistently and safely heat items. JJMyNurse US LLC, based in Louisville, provides a platform that enables patients to select in-home caregivers in real time. JJOrasis Systems, based in East Lansing, provides all-weather radar
imaging with LiDAR-like resolution. JJ Pathware, based in Ann Arbor, intervenes during a biopsy to ensure its success. JJ PhotosynQ LLC, based in East Lansing, accelerates the crop improvement cycle and protects yield loses. JJ PocketNest, based in Ann Arbor, provides financial planning to Generation X and millennials in a digital, methodical format. JJ PreCare Medical Inc., based in Ann Arbor, provides a more targeted, less costly treatment for the $11 billion chronic wound care market. JJ S3D Precision Dispensing, based in Ann Arbor, offers print heads that
Winners will be announced Nov. 13 at the Lexus Velodrome in Detroit. enable the manufacturing of next-generation electronics from automotive smart surfaces to biomedical devices. JJShoptelligence, based in Ann Arbor, is an AI-style discovery platform that creates contextual and interactive ensembles. JJSpellBound, based in Ann Arbor, uses augmented reality to help pa-
tients better engage with treatment and hospitals to maximize reimbursement revenue. JJ Urbaneer Inc., based in Grand Rapids, creates smart living interiors that are configurable, connected and commerce-enabled. JJ VerteCore, based in Natchez, Miss., provides a safe, effective and cost-conscious wearable to relieve back pain and spinal disorders. JJ Wheeli, based in New York, provides a carpooling app for college students and bills itself as the Airbnb for empty car seats on the road. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl
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Huntington Bank to close 31 branches in Michigan By Annalise Frank afrank@crain.com
Huntington Bancshares Inc. plans to close 70 branches around Jan. 1, including 31 in Michigan. The Columbus-based bank has large presences in Michigan and Ohio. The 31 Michigan branches are about 10 percent of its statewide total. Five closures are in metro Detroit: JJ2 Towne Square in Southfield JJ15223 N. Holly Road in Holly JJ4710 Rochester Road in Royal Oak JJ22859 Ryan Road in Warren JJ22575 Telegraph Road in Southfield “Many” of the closing branches are near another branch that can support customer traffic, Vice President of Media Relations Emily Smith said in an email. The closings are part of a regular review of distribution network and branch locations, Smith said.
Need to know
JJColumbus-based bank has large
presences in Michigan and Ohio
JJOut of 31 to close in Michigan, five in metro Detroit JJBank expected consolidation after 2016 purchase of FirstMerit; reportedly already closed more than 100 branches
A majority of branch employees are expected to be shifted to other roles in the company. Smith did not respond to follow-up questions on numbers of employees. In 2016, Huntington acquired Akron-based FirstMerit Corp., joining the two banks with major presences in Michigan in a deal valued $3.4 billion in cash and stock. It was made clear at the time by leadership there would be layoffs and branch closings at Huntington and FirstMerit. The bank has closed more than 100 branches since the acquisition, The
Plain Dealer of Cleveland reported. Crain’s previously reported the two had a combined 339 branches in the state at the time of the acquisition announcement. As of June 30, 2018, Huntington had 308 branches in Michigan and 464 in Ohio out of a total of around 970. The two states are its biggest markets, followed by Pennsylvania, Indiana and Illinois. Huntington Bank in August announced another acquisition. It purchased Chicago-based Hutchinson, Shockey, Erley & Co. Both mergers and online banking have been cited for a decline in bank branches nationwide. Huntington reported 2018 second-quarter net income of $355 million, up 31 percent from the same quarter last year; it had total assets of $105.4 billion as of June 30. Annalise Frank: (313) 446-0416 Twitter: @annalise_frank
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Cisco Systems closes on $2.35B acquisition of Duo Security By Annalise Frank afrank@crain.com
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The massive acquisition of Ann Arbor-based Duo Security Inc. has closed, settling the cybersecurity company in the arms of a San Jose, Calif.-based global networking firm. Cisco Systems Inc. (NASDAQ: CSCO) acquired Duo Security for $2.35 billion, the companies announced last week in a news release. Cisco announced its intent to do so in August. It is believed to be the biggest acquisition of a venture capital-backed startup in Michigan history. From an investment standpoint and the example it sets, it’s expected to have cascading ripple effects in the region. The takeover of Duo Security comes about a year after a venture capital funding round valued the quickly growing cybersecurity enter-
Need to know
JJSan Jose, Calif.-based global network-
ing firm acquires Ann Arbor-based company
JJMammoth deal expected to create new investment, serve as example in region JJCo-founder Dug Song staying on as general manager
prise at $1.17 billion. Cisco acquired Duo Security for cash and assumed equity awards for the company’s outstanding shares, warrants and equity incentives, the release said. Co-founder Dug Song is staying on with his 8-year-old internet security provider as general manager under Cisco’s networking and security unit led by David Goeckeler. Song’s co-founder, Jon Oberheide, will stay on as well, but his title and role are
yet to be determined. Cisco spokesman Jim Brady said in August that the company planned to take on the “vast majority” of Duo Security’s more than 700 employees and expand its presence in Michigan. Brady did not immediately respond to a request for comment last week. “Duo’s people-centric, zero trust security model allows secure connections to applications — whether on premises or in the cloud,” Gee Rittenhouse, senior vice president and general manager of Cisco Security, wrote in a blog post on the deal. “Together, Cisco and Duo are designing infrastructure for the extended enterprise where users, devices and applications are the center of the modern security architecture.” Annalise Frank: (313) 446-1612 Twitter: @annalise_frank
C R A I N ’ S D E T R O I T B U S I N E S S // O C T O B E R 8 , 2 0 1 8 Pasquale’s Restaurant has been open on Woodward Avenue in Royal Oak since 1954. LUCAS VALONE FOR CRAIN’S DETROIT BUSINESS
Pasquale’s in Royal Oak to close as site marketed for redevelopment By Kurt Nagl knagl@crain.com
Owners of Pasquale’s Restaurant in Royal Oak are planning to close the restaurant after 65 years in business and market the prime Woodward Avenue property for possible redevelopment. The DelGiudice family, which has owned the iconic pasta and pizza eatery since it opened in 1954, has not yet set a closing date, said Ryan Cohn, managing broker at RBC1 LLC — the real estate firm marketing the property. “My brothers and I grew up here; it’s always been family run and we’ll miss feeding the community,” co-owner Michael DelGiudice said in the release. “We’ve been slowing down naturally for the last few years, and after discussing this internally we believe the timing is right.”
Need to know
JJFamily restaurant opened in 1954 JJClosing date has not been decided JJProperty being marketed as is or for redevelopment
Cohn said the restaurant at 31555 Woodward Ave. will remain open until the family makes a deal on the property. Owners wish to keep a stake in it and are seeking leasehold deal partners who want the property as is or for redevelopment. A deal would likely take the form of a ground lease, Cohn said. He declined to give an asking price for the property, as it depends on how the deal takes shape. Cohn said the family is open to selling the entire business, including the name, and would have it contin-
ue operating as a restaurant “in an ideal world.” However, he said, the site is prime for larger development and “economics will lead more than legacy.” Cohn said the family has been approached several times by those interested in the property, but he declined to say who. The 1.19-acre property includes the 7,587-square-foot restaurant with a full basement, 190 parking spaces and a “bigger-than-life” sign welcoming visitors. It also comes with a Class C liquor license. A total of $55,254.12 in taxes for winter 2017 and summer 2018 are owed on the property, according to a brochure from the broker. Cohn said the family wished to defer comment through him, but they are “excited to continue feeding the community” until they close.
New leadership fuels Skidmore Studio By Annalise Frank afrank@crain.com
After the sudden death of its longtime leader this winter, Detroit advertising and design firm Skidmore Studio is under new care. Drew Patrick, president of the firm that former CEO Tim Smith bought and saved by bringing to downtown Detroit in 2011, purchased the company as of last week. Smith died Jan. 16 at 54 from a cardiac arrest incident, leaving ownership of Skidmore to his wife, Colleen Smith. Patrick, 39, knew Tim Smith for 13 years as a friend and worked with him for nine. Before he began running day-to-day operations as president in December 2016, Patrick was CFO and COO. When Smith died, Patrick filled the big-picture void he left and turned more toward a public-facing position, he said. “Once that happened in January, our world at the studio changed a bit and what happened was really surprising,” Patrick said. “Everyone came together. We had this deepened sense of community. The troops rallied and I had this realization that what was in front of me really, now, was my calling to help shepherd this Detroit creative icon forward, coming out of a tragedy that was totally unexpected.” Patrick declined to disclose the price he paid for the Skidmore Stu-
Drew Patrick: Purchased the company.
Tim Smith: Bought and saved Skidmore.
Need to know
JJCEO Tim Smith died at 54 in January JJPresident Drew Patrick has purchased the 60-year-old Detroit agency JJPlans to continue Smith's work making a hub for creative talent in the city
dio entity’s stock. Smith’s ownership there started when he bought the agency outright from Mae Skidmore, daughter of late owner and founder Leo Skidmore, in 2009. He had been hired to oversee the agency’s client diversification in 2001, then acquired a 10 percent equity stake in 2005 and became president in 2007. Smith moved the firm in 2011 from Royal Oak to nearly 10,000 square feet on the entire fourth floor of the Dan Gilbert-owned Madison Building at 1555 Broadway St., where it remains. The 59-year-old advertising studio recorded $3 million in revenue in
2017 and is on track to grow in 2018, Patrick said, though he declined to estimate how much. Skidmore does conceptual work, new product and brand development, and solves ad-related challenges with its staff of 16. It hired three so far this year and expects to bring on two more by the end of 2018. One, a market strategist, will focus solely on finding Skidmore new work. Patrick said Detroit is Skidmore’s home base and where it makes most connections, but like any growing company it aims to stretch its reach more nationally. “(Recently) we had a little bit of a newfound focus on securing the work we want to do, versus accepting work that just comes to us,” he said. Skidmore has worked with Universal Studios since 2016. Around two years ago it began consciously seeking work nationally. New clients include Stroh’s and Belle Tire. Following Smith, Patrick wants to keep Skidmore an “environment for the best creative talent in Detroit to thrive,” he said. “Though this situation didn’t start in a way that was expected or positive, I just feel so honored and thankful and humbled by having the chance to lead the studio into its next 60 years.” Annalise Frank: (313) 446-1612 Twitter: @annalise_frank
Possible is everything. Boost your career and earning power Lawrence Technological University’s College of Business and Information Technology offers MBA and MSIT programs. Choose from on-ground, online or hybrid courses Learn from industry-savvy faculty Explore project management and cybersecurity grad certificate options For more information, visit: ltu.edu/mba or ltu.edu/msit
Architecture and Design | Arts and Sciences Business and Information Technology | Engineering
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CALENDAR WEDNESDAY, OCT. 10 2018 MICHauto Summit. 9:30 a.m. Detroit Regional Chamber. Event includes automotive industry leaders, students and interns from regional universities, colleges and trade schools. The Beacon at One Woodward. $75 members, $125 nonmembers. Contact: Jordan Yagiela, phone: (313) 596-0384; email: jyagiela@detroitchamber.com Detroit Center for Design + Technology Talk: Defining Your Exit Strategy. 6-8 p.m. Lawrence Tech-
DEALS & DETAILS nological University. Speaker Kimberly Clayson of Clayson, Schneider & Miller in Detroit will talk about what to do when entrepreneurs are ready to leave the businesses they started. Learn when and how to sell a business, navigate a merger or prepare for the unforeseeable future. 4219 Woodward Ave., Detroit. Free. Email: stephanie@prologuedetroit. com; phone: (313) 818-3596; website: detroit.design/dcdt-talk.html
UPCOMING EVENTS Education 2.0: Engaging in the
Race to Create a Future Workforce. 8-9:30 a.m. Oct. 17. Troy Chamber of Commerce. The future of higher education is in flux as colleges and universities take steps to create the next workforce. Speakers include: Marsha Kelliher, president and CEO, Walsh College; Ora Hirsch Pescovitz, president, Oakland University; and Peter Provenzano Jr., chancellor, Oakland Community College. MSU Management Education Center, Troy. $22 Troy Chamber members, $32 nonmembers. Contact: theteam@troychamber.com. Website: troychamber.com/events/educa-
tion-2-0-engaging-race-create-future-workforce Robots Won’t Take Your Job, But They Will Change It. 11:30 a.m.-1:30 p.m. Oct. 23. Detroit Economic Club. Ranjit de Sousa, president, Lee Hecht Harrison, will talk about changes and trends. Westin Book Cadillac. $45 members, $55 guests of members. Website: econclub.org To submit calendar items visit crainsdetroit.com and click “Events” on the home page. Then, click “Post an event” from the drop-down menu.
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Tom and the Specialty Finance experts at Fifth Third Commercial Bank go beyond financing by creating solutions that maximize borrowing capacity, and customize payments to meet cash flow needs. This is banking a Fifth Third better.
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Notices & Disclosures Fifth Third Capital Markets is the marketing name under which Fifth Third Bank and its subsidiary, Fifth Third Securities, Inc., provide certain securities and investment banking products and services. Fifth Third Capital Markets offers investment banking++, debt capital markets+, bond capital markets++, equity capital markets++, financial risk management+, and fixed income sales and trading++. Fifth Third Bank provides access to investments and investment services through various subsidiaries, including Fifth Third Securities. Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a registered broker-dealer and registered investment advisor registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Securities and investments offered through Fifth Third Securities, Inc. and insurance products: Are Not FDIC Insured Offer No Bank Guarantee Are Not Insured By Any Federal Government Agency
May Lose Value Are Not A Deposit
+ Services and activities offered through Fifth Third Bank ++ Services and activities offered through Fifth Third Securities, Inc.
Member FDIC
CONTRACTS J Axalta, Clinton Township, supplier of liquid and powder coatings, has signed a multi-year agreement to become the Official Paint Partner of the Jacksonville Jaguars. Website: axalta. com J Your People LLC, Huntington Woods, a public relations and marketing firm, has become the agency of record for People’s Food Co-op, Ann Arbor; Rival Insulation, Ferndale; 100 Businesses Who Care, Rochester; Life Remodeled, Detroit; Special Tree, Romulus; Mediator To Go, Farmington Hills and Systematic Manufacturing Inc., Sterling Heights. Website: yourppl.com J Jacapps, Bingham Farms, a software company, has provided more than 100 audio apps for Salem Media Group, Camarillo, Calif., a radio broadcaster. Websites: jacapps.com, salemmedia.com J Jool Health, Ann Arbor, a digital personal life coach, has a partnership with the University of Delaware to provide its services to faculty and staff. Website: joolhealth.com J Dürr Systems Inc., Southfield, will build a high-tech paint shop at Toyota’s plant in Georgetown, Ky. Dürr is also supplying large paint booths and small booths/work decks, Dürr ovens, and the Ecopure RL, an exhaust-air purification system. Website: durr-northamerica.com J BlueWillow Biologics, Ann Arbor, has been awarded a National Institutes of Health Small Business Innovation Research grant for the development of an intranasal NanoVax vaccine for the prevention of chlamydia. Website: BlueWillow.com J Fourmidable, Bingham Farms, a real estate management and brokerage company, is now the managing agent for Vanderbilt Townhomes, Mt. Morris, a development of 152 multi-family rental units. Website: fourmidable.com J Derek Dickow, founder of Birmingham-based Steward Media, a public relations and political relations firm, has been retained by the Michigan Republican Party as its deputy finance director. He was recently finance director for Lt. Governor Brian Calley.
EXPANSIONS J AutoHook LLC, Detroit, a digital marketer, has expanded its dealer coop program with Kia Motors America to include TrafficView, a program that uses a dealer’s customer relationship management data and matches it against the daily industry sales statistics available. Website: driveautohook.com J Schramm’s Mead, Ferndale, a mead producer, has signed with Cavalier Distributing Co., Indianapolis, Ind., a beer distributor, to begin sales in Indiana. Website: schrammsmead. com, cavbeer.com J Cedars Support, Center for Eating Disorder Assessment, Recovery & Support, an eating disorders treatment center, has opened an outpatient center at 1750 S. Telegraph Road, Bloomfield Hills. Phone: (248) 6548026. Website: cedars-support.com
Submit Deals & Details items to cdbdepartments.com
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NOTABLE WOMEN IN MARKETING navigate re-brandings, launch websites and manage internal and external communications for their companies. They translate complex industry language into words customers buy into. They are out-of-the-box thinkers who challenge co-workers with their creativity. The 28 women in this report were nominated by their peers at work and in the community. (Read more about how they were chosen on Page S9.)
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DENISE ASKER Director of Marketing, Clayton & McKervey, Southfield Recent education: Master of Management, Walsh College Within months of Denise Asker joining Clayton & McKervey in late 2015, she was helping the accounting firm navigate through the death of its president, Kevin McKervey, by implementing crisis communication strategies and developing a multifaceted marketing plan. Since then, Asker has helped build the firm’s China practice by developing and managing a Mandarin website and social media strategy along with increasing visibility within the Chinese community. Her campaign for the firm’s Transfer Pricing services increased awareness among accounting firms and integrated new network and referral opportunities. “Not only has (Asker) played a significant role in developing our business and marketing plans, she has been a great coach to our entire team. Also, these initiatives require great discipline in managing but also flexibility in dealing with the challenges that come out of nowhere that can require quick action. She is masterful in dealing with these issues and making quick and effective adjustments,” said Clayton & McKervey President Rob Dutkiewicz. Asker also is active in industry and community groups, including the Association for Accounting Marketing’s strategic communications committee and the Women’s Alliance of Southeastern Michigan.
JENNIFER BALLARIN President/Owner, Chouette Marketing LLC, Birmingham Recent education: Master of Business Administration, Michigan State University Prior to starting Chouette Marketing, Jennifer Ballarin was a senior associate for Plante Moran where she led marketing for its Wealth Management team. Now Ballarin acts as CMO for a list of global and publicly traded clients where she augments and leverages their internal resources to help them manage their marketing and sales programs. Her clientele has included Plante Moran, Ringler CPA, CBI Design Professionals and Alidade Capital. Previously, Ballarin rebranded and marketed One Detroit Center, one of the tallest buildings in Detroit, and in doing so helped promote culture, team building and community for the tenants through events, prizes, a social media campaign and the creation of a lounge atmosphere. “I don’t feel like I’m working with a ‘consultant’ when we work with Chouette because the level of commitment and passion that (her firm brings) to our team is more akin to what you would experience from an employee or owner. There are aspects of a marketing program that we never considered appropriate for our project until Chouette brought them to our attention and showed us how to implement and monitor them,” said Greg Camia, senior vice president of iStar Financial and former majority owner of One Detroit Center.
“There are aspects of a marketing program that we never considered appropriate for our project until Chouette brought them to our attention and showed us how to implement and monitor them.” Greg Camia about Jennifer Ballarin
“Brooke has comprehensive knowledge of resources and the ability to communicate with people of various backgrounds and interests in a thoughtful, compassionate manner.” Kevin Fischer about Brooke Blackwell
BROOKE BLACKWELL Chief of Staff, Detroit Wayne Mental Health Authority, Detroit Recent education: Bachelor of Arts in Communications, California State University Brooke Blackwell so successfully enhanced communications at the Detroit Wayne Mental Health Authority that she was promoted this year from communications director to chief of staff. Under her leadership, DWMHA created an outreach campaign — including radio and TV PSAs, billboards and bus wraps — that provides prevention, treatment and recovery resources to people with mental illness, intellectual and development disabilities and substance abuse disorders. A member of the National Academy of Television Arts & Sciences, Blackwell also produced two award-winning TV network documentaries highlighting mental illness and substance abuse and the stigma surrounding them. In addition, she helps mentor young people in journalism, marketing and communications and is coordinating the launch of an internship program. “Brooke has comprehensive knowledge of resources and the ability to communicate with people of various backgrounds and interests in a thoughtful, compassionate manner,” said Kevin Fischer, executive director of National Alliance on Mental Illness Michigan. “She also has a unique ability to bring the right people and organizations together when collaboration is required to improve the lives of the people served by the authority.”
Monica Jakubiak Notable. Formidable. Knowledgeable. Indefatigable.
That is an Agent of Change.
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gacosourcing.com
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ANDREA BRIMMER Chief Marketing and Public Relations Officer, Ally Financial, Detroit Recent education: Bachelor of Arts, Michigan State University Andrea Brimmer’s greatest strength is consistently and effectively innovating. As a result, this year, Ad Age named her to its Women to Watch list. She developed and implemented Ally’s multi-part award-winning “Do It Right” campaign that helped unify various business units and employees and attract more clients. The 2017 “Hardest Working Dollar” campaign, which included putting more than 9,500 one-dollar bills in circulation and asking consumers to find them for a potential $10,000 award, yielded 1,500 news stories. And the 2018 interactive “Big Save” campaign encouraged 69,000 app downloads. “She is constantly pushing boundaries, breaking away from the norms of financial services marketing and taking strategic risks that have helped shape the essence of the Ally brand from its beginning,” said Kathleen Patterson, chief human resources officer at Ally Financial. Passionate about guiding young people into marketing careers, Brimmer participates with the Forbes CMO University speaking circuit. She also is a member of Impact100 Metro Detroit, a women-run group that makes high-impact grants to area nonprofits. “(Andrea)’s a strong advocate for these organizations, and she’s passionate about helping them get the word out about the great work that they are doing in the community. Her advocacy for our mission has also helped us attract many members, which in turn increases the grants we are able to offer the nonprofits we support,” said Impact100 President Amy Anger.
TONITA CHEATHAM Chief Communications Officer, Detroit Medical Center, Detroit Recent education: Master of Science in Integrated Marketing Communications, Roosevelt University Tonita Cheatham has created a legacy of placing the needs of others before her own. A member of several industry and community organizations, she has earned numerous awards including the AARP Community Service Award, U.S. Army Medical Commander Award for Community Service Excellence, She’s Empowered Lupus Award and Rhonda Walker Foundation Game Changer Award for Community Service, among others. “With a ‘can do’ attitude and a passion for helping others, Tonita always ensures that Southeast Michigan’s health comes first and whatever we’re focused on is ensuring equitable health for all, removing any barriers that may keep someone from getting the care they need,” said Anne Hill, Go Red for Women Director for the American Heart Association. Prior to her recent promotion from director of marketing of four DMC hospitals, Cheatham led the implementation of several medical center ad campaigns, such as DMC 29 Minute and DMC Cardio Team One. During the launch of the Affordable Act Campaign, she and a group of volunteers helped enroll 5,000 Detroiters. Her team also helped her hospitals cut charity care write-offs by $17 million. “Throughout her career, Tonita has created a legacy of well-structured and implemented marketing communication’s strategies that deliver maximum results,” said Scott Steiner, CEO of DMC’s Harper University, Hutzel Women’s and Detroit Receiving hospitals.
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JANICE COSBY
ELLYN DAVIDSON
Michigan Chief Communications and Marketing Officer, Ascension Michigan, Southfield Recent education: Bachelor of Arts in Public Relations, Wayne State University
President, Brogan & Partners, Birmingham Recent education: Bachelor of Business Administration, University of Wisconsin Madison
Janice Cosby has mentored at least 100 women. One example is Rosie Reebel, who credits her career to Cosby. Reebel once was an intern for Cosby; now Reebel is vice president of United Health Care in California. “We’ve always been impressed by the energy, commitment, and innovation that Jan brings to her job, to the community, and to the Inforum mission of removing barriers and increasing opportunities for women in the workplace,” said Terry Barclay, president and CEO of Inforum. “Her knowledge, warmth, authenticity and tireless dedication to mentoring and growing the next generation of talent have made her an amazing role model for so many.” In her role at Ascension, Cosby manages a team of 135 and develops the strategy and plans for its internal and external campaigns. She has helped create statewide marketing and branding campaigns that include broadcast, print and digital media. Last fall, she and her team rebranded Crittenton Hospital in Rochester into an Ascension Michigan hospital. Now they are working to rebrand the rest of the Ascension hospitals in the state. “Jan is a visionary. She is innovative and bold and understands what our community’s needs are and implements strategies to connect our ‘person-centered care’ to meet the needs of our community,” said Ascension Michigan COO Jean Meyer.
Ellyn Davidson is a force of nature, according to Sue Friedman, executive director and founder of FORCE, a nonprofit dedicated to researching hereditary cancers. Davidson is Board president for FORCE and a mentor to women who are undergoing treatment for breast cancer. “Ellyn couples her personal story as a breast cancer survivor with her marketing skills to improve our organization’s programs, reach and sustainability,” Friedman said. Davidson serves on the board of mentoring nonprofit Winning Futures; as commissioner for the Michigan region of BBYO, an enrichment program for Jewish teens; and leader of Brogan & Partners. She joined the firm 24 years ago as an intern and worked her way up to managing partner in 2010. In 2017, Davidson bought the company. In recent years, she acquired several clients, including Henry Ford Health System, Michigan Department of Natural Resources, Consumers Energy and Michigan Department of Health and Human Services. Under her leadership, the company began donating 5 percent of its profits in the form of pro bono work to organizations such as Komen Race for a Cure, Michigan Women Forward and Jewish Federation of Metropolitan Detroit. “I’ve worked for many types of leaders over my career — intelligent, creative, compassionate, audacious, passionate and supportive. But until I met Ellyn, I’d never worked with someone who is all these things and more,” said Lori Bahnmueller, partner and director of strategy at Brogan & Partners.
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®2018 Ally Financial Inc. All rights reserved.
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SARAH DECIANTIS Executive Vice President, Chief Marketing Officer, United Shore Financial Services LLC/United Wholesale Mortgage, Pontiac Recent education: Bachelor of Arts in Marketing and Advertising, Wayne State University Just three years after joining the company in 2014, United Shore promoted Sarah DeCiantis from vice president of marketing to chief marketing officer. DeCiantis, who developed a 40-person marketing team, has been a catalyst for the company’s rapid growth. She leverages data to set goals, measures success and explores ways her team can improve. She has spearheaded the creation of new websites, including an informative hub of information for mortgage professionals and one to help consumers find mortgage brokers. DeCiantis also expanded United Shore’s digital presence, social mentions, and campaigns; administered the rollout of high-profile products that helped increase revenue 252 percent in five years, and helped develop and implement the company’s Marketing Toolbox — a customizable package of videos, social posts, press templates and other materials. “Sarah is exactly what you want in a CMO. She’s got her finger on the pulse of everything that we do and provides great leadership while, at the same time, giving our team members the space to really own their roles. She has been a key driving force in transforming UWM from a lender that ranked outside the top 25 lenders in the country to a top 5 mortgage lender and the No. 1 wholesale lender in America,” said Mat Ishbia, president and CEO of United Shore/ UWM.
DONNA FONTANA
JENNIFER FOSTER
Senior Vice President and Senior Partner, General Manager Detroit, FleishmanHillard Inc., Detroit Recent education: Bachelor of Arts in Speech Communication, Wayne State University
President & CEO, Catalyst Media Factory, Detroit Recent education: Bachelor of Arts in Communications, University of Michigan-Dearborn
Donna Fontana joined FleishmanHillard in 2014 as the first general manager of its new Detroit office, established to support one client — General Motors. Since then, the Detroit office added 20 clients, including global auto suppliers, industrial companies, M-1 Rail and Detroit Economic Growth Corp. Under her leadership, the office has earned numerous awards, such as the prestigious Gold Lion at Cannes in 2016. Fontana’s role is to solve client problems. In part, she does this by creating efficiencies through cross-channel promotion and investigating and supporting partnerships with other organizations. She has also helped develop new corporate reputation practices. “Donna has, in a short amount of time, comprehended our business and outlined a plan to elevate our position in the market. We are now reaching new goals we wouldn’t have thought possible without her vision,” said Charlotte Fisher, director of Communications and Marketing at DEGC. Fontana is actively involved in Detroit Regional Chamber’s MichAuto, the Public Relations Society of America and American Heart Association Heart Ball. “Through her involvement with our organization, she has assisted with our goal in creating awareness initiatives for Michigan’s automotive and mobility industry as a talent attraction and retention tool as well as help with brand strategy, marketing and target audience identification on a number of other projects — setting us up for successful outcomes,” said Katelyn Davis, director of MichAuto.
After working her way up from intern to senior vice president of Marx Layne & Co., Jennifer foster started her own company two years ago to service small businesses. Already, Catalyst Media has served more than 60 businesses, including Sfumato Fragrances, SheHive, Bamboo Detroit, Clutch & Throttle, Rain Media and Cornerstone Education Group. She also serves as chief marketing officer of Anchorage-based startup Quick Cup and chief administration officer for the Detroit chapter of The Association for Women in Communications. “I was fortunate to work with Jennifer and learn that she is hands down one of the best public relations and communications professionals in the metro area. She is an innovator, a dogged advocate for her clients, and a persistent and professional publicist who is well respected by clients and news organizations alike,” said Carol Marshall Lundberg, global branding and media manager at Miller Canfield. Foster, who serves as chair of CASL Alumni Affiliate at UM-D, also dedicates her time to increasing the number of students in communications fields and mentoring students at Cornerstone Schools about the numerous opportunities available to them in a variety of fields. “She’s served as a staunch advocate for the students of the College of Arts Letters and Sciences and has especially worked to create opportunities to demonstrate to students and parents that a career in communications can be personally fulfilling and financially rewarding,” added Lynn Spinelle, board member at University of Michigan Dearborn, College of Arts, Science & Letters Alumni Affiliate.
SHERRY FRANDLE Senior Vice President, Marketing and Alliances, Secure-24, Southfield Recent education: Degree in Sociology and French, L’Universite d’Avignon A strong cross-functional communicator, Sherry Frandle and her executive team created a new marketing structure that has updated and improved lead generation, branding, industry awareness and profitable growth for Secure-24. Her work also supported the company’s recent acquisition by NTT Group, a large IT company in Japan. Frandle built an inside sales team to process preliminary leads before handing them to sales representatives in the field, increasing sales by double digits each year. Her team also rebranded Secure-24’s website, lead-generation campaigns and events. In 2017, the company experienced nearly 30 percent growth in managed security services due, in part, to this improved branding. A past winner of the National Association of Professional Women’s VIP Woman of the Year, Frandle has a passion for coaching employees and ensuring they receive necessary training to stay on top of marketing trends and best practices. “Sherry … makes marketing easy, and I have learned so much about the industry and how to market for success. Her dedication to her team’s success and to the company’s success are unmatched,” said Tawanna Sanders, director of Marketing Communications for Secure-24. Frandle, a member of Heifer International and Alpha Omicron Pi, also works with Secure-24’s Cares Committee, which supports nonprofits devoted to helping causes submitted by employees to positively impact the community.
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Owner, Chief Creative Officer, Your People LLC, Huntington Woods Recent education: Master of Fine Arts in Writing, Goddard College Lynne Golodner, founder of public relations/marketing firm Your People, uses her communications talents as a force for good. In 2016, she founded One Earth Writing, a nonprofit working to develop confidence in teens through writing, conversation and leadership development. The next year, the U.S. State Department named Golodner a Fulbright Specialist, a professional eligible for grant opportunities as an expert consultant at educational institutions around the country. Golodner, who is a Goldman Sachs 10,000 Small Businesses certificate recipient, the author of eight books and a writing teacher at University of Detroit Mercy, frequently speaks about using stories, relationships and a higher purpose to build one’s business. “Lynne is a dynamic speaker. She delivers exactly what she promises and does it in a way that is compelling and entertaining,” said Tonya McNeal-Weary, executive director of Michigan Association for Female Entrepreneurs. Golodner also puts her words into action at work by providing twice yearly retreats and professional development opportunities for her staff, mentoring young professional women and those in high school and college and going beyond to encourage her clients. “Lynne helped open my heart and my legal practice and now both are full, growing and booming. Lynne is constantly improving herself and as her client, I benefit from her continuous growth and development,” said Alisa Peskin-Shepherd, principal at Transitions Legal PLLC.
“She led three significant areas that have all been ‘firsts’ for the business.” Lisa Vallee-Smith about Leah Haran
“Her amazing work ethic, creative skills, enthusiasm and energy allows her to achieve fantastic results.” John Boyd about Kelly Higgs
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LEAH HARAN
KELLY HIGGS
Senior Vice President, Strategy & Media Relations, Airfoil Group, Royal Oak Recent education: Bachelor of Arts in Communication Studies, University of Detroit Mercy
Director of Marketing & Research, Signature Associates, Southfield Recent education: Associates degree, Schoolcraft College
Leah Haran manages 35 percent of Airfoil Group’s revenue in her client portfolio and is responsible for driving new business initiatives and providing strategic insights that inform new business opportunities. In her role, she restructured the firm’s strategic planning process and spearheaded the use of research to generate publicity and support product launches for clients. “She led three significant areas that have all been ‘firsts’ for the business. Not only did she create the agency’s first comprehensive measurement system, she also started up and led the firm’s inaugural social media practice. Leah also led our teams that earned Airfoil its first PRSA (Public Relations Society of America) Silver Anvil Award,” said Airfoil founder and CEO Lisa Vallee-Smith. In addition, Haran is senior lead on three of the firm’s longest running accounts, including Faurecia, eBay Motors and Parrot. Other clients include Duo Security, Peloton and Wayne County Airport Authority. For eBay Motors, Haran’s team supported a product launch by announcing new technology along with releasing information on shopping trends, surpassing campaign goals. For Parrot, her team implemented a communications and media relations program shifting the brand from automotive supplier to drone, introducing the first consumer drone at CES. Outside of work, Haran co-coaches the Plymouth Canton 10U Spirit Fastball Team for girls and volunteers at the GraceKids children’s ministry at Grace Church.
Kelly Higgs held nearly every position prior to becoming marketing director at commercial real estate firm Signature Associates in 2005. Because she is so well acquainted with the business, she holds influence in all aspects of the company. “Kelly has been with Signature for over 19 years and excelled at providing superior effort in building a high performing marketing team to assist our brokerage professionals. Her amazing work ethic, creative skills, enthusiasm and energy allows her to achieve fantastic results,” said John Boyd, executive vice president and principal at Signature Associates. In addition to redeveloping Signature’s website, Higgs last year helped form a 12-person community outreach team called Signature Team Cares. In its first official year, the team raised more than $44,000 and spent more than 337 volunteer hours throughout the community. She also spearheaded an internal program that features a different application, product or topic presented by someone within Signature. The program empowers staff to improve their own quality of work and learn new skills and gives the presenter a chance to learn public speaking skills to engage an audience. In addition to her own creativity and innovation in continuing to make Signature a market leader, she is often called upon to attend presentations for potential clients, ranging from small privately-owned businesses to Fortune 500 companies.
Congratulations
Elizabeth Jones Vice President Global Marketing, Communications and Regulatory Affairs NSF INTERNATIONAL
Thanks to your efforts, NSF International continues to be recognized as a global leader in public health – protecting the food we eat, the water we drink, the health care products we use, the air we breathe and
2018 NOTABLE WOMEN IN MARKETING
the environment in which we live. Your “team one” perspective has made you a trusted advisor and inspiring leader. Congratulations on this well-deserved recognition!
NSF INTERNATIONAL 789 N. Dixboro Road, Ann Arbor, MI 48105 | www.nsf.org
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MONICA JAKUBIAK Group Account Director, DP+, Farmington Hills Recent education: Bachelor of Arts in Communications, University of Michigan In 2016, DP+ created Monica Jakubiak’s current position after she helped the agency secure the McLaren Health/Karmanos Cancer Institute account. Known for being tirelessly diligent, Jakubiak oversees strategic planning and research, creative media planning and buying, digital innovations and production. She helped the company develop a new account staffing approach and eliminating hindrances in project development. Jakubiak also is a subject matter expert in healthcare marketing and manages a collaborative team handling the Blue Cross Blue Shield of Michigan and LightRX accounts for DP+. Since the implementation of the Affordable Care Act, she helped lead development of BCBSM’s first fully digitally centered campaign, and oversaw the launch of MIBlue, which pairs with Amazon’s Alexa. In addition, she directed McLaren’s first statewide branding campaign. As a result, Jakubiak’s team has received multiple industry awards. “Monica recognizes that in today’s competitive environment, strong brands must be supported with nimble, cost-effective infrastructure to create consistent, targeted messages that communicate the value of the brand. This is particularly important in complex organizations like McLaren where we are operating in multiple markets with multiple service lines,” said Kevin Tomkins, senior vice president of marketing for McLaren Health. Jakubiak is a member of Detroit’s AdCraft and Impact100 Oakland County, a group that pools charitable contributions.
ELIZABETH JONES
MARTI LOLLI
Vice President, Global Marketing, Communications and Regulatory Affairs, NSF International, Taylor Recent education: Master of Business Administration, Texas A&M University and New Hampshire College
Senior Vice President of Consumer & Government Markets and Chief Marketing Officer, Priority Health, Southfield Recent education: Master of Business Administration, Grand Valley State University
While serving in the U.S. Navy, Elizabeth Jones worked in the Press Operations Directorate of the Office of the Secretary of Defense and was Director of the Navy Public Affairs Center. “Captain Elizabeth Jones’… experience and extensive network in the Detroit business community was invaluable to the commissioning of the USS DETROIT on the Detroit waterfront in 2016,” said John G. McCandless, Captain, USN-Ret., Retired National Field Operations Manager, Toyota Motor Sales. In her current role, she directs marketing, communications and regulatory affairs for five of NSF’s global divisions; she creatively embedded marketing team members within other business teams to increase understanding and implementation of brand and strategies. Jones also deployed the organization’s first end-to-end global customer relationship management system, launched an award-winning consumer health and safety campaign, led the development of a global website that increased business 40 percent, and helped the company grow revenue. Under her leadership, NSF’s communications and research teams won three International Gold Quill Awards, the highest international award possible from the International Association of Business Communicators. Jones previously worked as Vice President of Communications for Rock Ventures.
Honoring Our Brand Champion
CONGRATULATIONS Saudia Santure for being named among the 2018 Notable Women in Marketing. We salute your passion for the Consumers Energy brand and your commitment to improving customer satisfaction each and every day. 168027
“Monica recognizes that in today’s competitive environment, strong brands must be supported with nimble, cost-effective infrastructure to create consistent, targeted messages that communicate the value of the brand.” Kevin Tomkins about Monica Jakubiak
“Marti’s energy and commitment to our social enterprise is evident in her thoughtful questions and decision-making.” Kathy Crosby about Marti Lolli
Innovative and strategically disruptive, Marti Lolli is responsible for 243 team members providing and implementing brand strategy, marketing communications, product development and consumer engagement for Priority Health, the second largest health insurer in Michigan. These are among the reasons Lolli has been promoted twice in the past two years. In addition, Lolli led the development of Priority Health’s Wellbeing Hub, an online resource that relies on predictive analytics to create a personalized experience for its members. An expert in health care reform, she was responsible for preparing employees and educating consumers and the business community about Affordable Care Act-related market changes. “She has cultivated an agile team mentality that has permeated throughout Priority Health, pushing our employees to achieve the most impactful outcomes for our members,” said Dr. John Fox, medical director at Priority Health. Named Emerging Industry Leader in Managed Care in 2017, Lolli is a member of the executive leadership team for the American Heart Association and executive member of Inforum’s Healthcare Next Committee. She also is on the board of Goodwill Industries and a part of Grand Valley State University’s Economic Advisory Council. “Marti’s energy and commitment to our social enterprise is evident in her thoughtful questions and decision-making,” said Kathy Crosby, president and CEO at Goodwill Industries of Greater Grand Rapids.
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ERIN MILLERSCHIN President, The Millerschin Group, Auburn Hills Recent education: Bachelor of Arts in Journalism, Michigan State University Darlene Oleksik, manager of Branding & Communications at Eaton Vehicle Group, refers to Erin Millerschin as an invaluable partner who understands the vital elements of integrated communications strategy and implementation. Millerschin, a member of the Automotive Press Association and Public Relations Society of America, started her communications firm in 2000 and has grown it into a multimodal agency. Over the years, Millerschin Group has expanded services to businesses in heavy trucks, auto interiors, architecture, nonprofit and interior design and remodeling industries. “She helped us create and execute an award-winning media event that is now the template for the entire organization,” added Oleksik. More recently, Millerschin orchestrated the grand opening of the Lear Innovation Center in Detroit and the WABCO plant opening in South Carolina. And the company became a certified Women’s Business Enterprise and added digital marketing and graphic design capabilities. On top of it all, Millerschin, who earned a spot in PR News’ 2017 list for Top Women in PR, makes encouraging young women to cultivate communications, marketing and public relations skills a priority. “Erin is an inspiring employer and a great leader, exemplifying commitment and perseverance. She always creates a fun atmosphere to get ideas rolling and open up conversations between staff members, clients and media,” said Millerschin Group Vice President John Tews.
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JILL NELSON
MICHELE RONEY
SAUDIA SANTURE
Director of Marketing and Communications, Children’s Hospital of Michigan Foundation, Detroit Recent education: Master of Healthcare Administration, University of Cincinnati
Senior Vice President, Client Solutions, The Mars Agency, Southfield Recent education: Bachelor of Fine Arts, Michigan State University
Brand Manager, Corporate Communications, Consumers Energy, Jackson Recent education: Master of Business Administration, Baker College
Jill Nelson’s ability to maintain a positive attitude makes her “an outstanding ambassador” for the public grantmaking charity. That attitude also makes her workplace more productive. “Jill is not only a talented communications professional, but she is an absolute pleasure to work with every day ... Her attitude is a game changer,” said Larry Burns, president and CEO of Children’s Hospital of Michigan Foundation. Nelson, who is primary liaison between Children’s Hospital of Michigan Foundation, DMC Children’s Hospital, Children’s Hospital of Michigan and other partners, was promoted to her current position last year. Nelson led efforts to increase awareness of the foundation through myriad initiatives including print; broadcast, such as its Caring for Kids radio show; billboards at Comerica Park and Little Caesars Arena; and interactive media on its website. She also spearheaded a campaign to create a new logo and brand for the foundation separate from Children’s Hospital of Michigan. Nelson helped develop partnerships with sports teams, including the “Little Champion of the Game” program that recognizes youth who have overcome various obstacles and raises awareness of the foundation. In addition, Nelson, a member of Women in Communications, Michigan Health and Hospital Association and Detroit Economic Club’s Young Leaders, holds informal mentoring sessions with high school and college students exploring career paths.
Congratulations to Marti Lolli for being recognized as one of the Notable Women in Marketing. Marti’s leadership has helped Priority Health grow throughout Michigan by staying true to our mission of improving the health and lives of the members we serve.
A talented listener, Michele Roney is a trusted leader and client advisor who, over the years, has worked with Best Buy, Walmart, Sam’s Club, Kroger and Walgreens. After 29 years with The Mars Agency, she is still innovating. “(Michele’s) dedication and intuitive ability to get to the heart of any challenge and determine the most cost-effective solution continues to drive growth for our clients and our business,” Rob Rivenburgh, CEO North America at Mars. In recent years, Roney developed the company’s retail solutions group that includes an online system and specializes in tools that help retailers adopt collaborative marketing and merchandising processes. Roney also is a member of the Path to Purchase Institute (P2PI), which provides resources that help retailers understand shopper marketing demands, and was nominated for a 2018 P2PI Women of Excellence award. Rounding out her skills, Roney plays flute and piccolo with the Farmington Community Symphony Band, which performs concerts for the community, nursing homes and other senior living facilities.
In addition to leading the implementation of Consumers Energy’s “Workfront,” a work efficiencies management tool, Saudia Santure was the driving force behind driving customer engagement through the utility’s Promise to Michigan campaign. Managing a team of 30, Santure oversaw work on customer satisfaction, specifically around communications; managed internal matrixed groups, including one that is responsible for understanding and analyzing data, understanding customer needs and identifying key tactics to address those specific needs; and managed Consumers’ 125th anniversary celebration, the culmination of a year-long anniversary promotion that included more than 20 headquarters across the state. “Saudia … is a natural leader and mentor to other team members and brings fun to the team,” said Megan Brown, executive director of Corporate Communications for Consumers Energy. “She also supports other women, encouraging them to speak up for themselves, and mentoring them through career conversations and coaching,” said Senior Human Resources Director LoRita Baker. For instance, Santure is a member of Consumers’ Women’s Advisory Panel Executive Board and is currently working to establish a job shadow program for non-officer-level female employees. Rounding out her skills, Santure also is president of United Way of Chelsea.
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CANDICE SIMONS CEO, Brooklyn Outdoor, Detroit Recent education: Bachelor of Science in Marketing, DePaul University Candice Simons returned to Detroit from Chicago to help keep advertising dollars in Michigan by starting her own outdoor billboard business. Brooklyn Outdoor has worked with Netflix, Detroit Tigers, Sprint, Anheuser-Busch and others to install hand-painted murals, wallscapes and bike share panels. For Cobo Center, the company developed a huge two-screen digital display to promote the convention center and the city. Because Simons also sees her company as a relationship builder, she promotes collaborations between entrepreneurs and large companies; partners with companies, such as Lululemon, on events; and offers networking space. Simons, a Crain’s Detroit Business 40 Under Forty honoree, is a host of Detroit’s Murals in the Market, which curates 125 murals by artists around the world. For her staff, Simons holds monthly team-building workshops and promotes incentives to encourage staff to celebrate one another. “Candice Simons is a huge asset to the OAAA (Outdoor Advertising Association of America) and the outof-home advertising industry as a whole. She is heavily involved with our national organization through participating as a member of our marketing committee and planning committee for our 2019 conference. She has also just been asked to join our judges’ panel for the prestigious OBIE awards for the 2019 conference. Candice exemplifies what is possible to young people in marketing and communications coming through the ranks,” said OAAA President and CEO Nancy Fletcher.
MICHELE SZCZYPKA Chief Marketing and Communications Officer, Mercy Health and Saint Joseph Mercy Health System, Canton Recent education: Bachelor of Science, Central Michigan University Michele Szczypka’s marketing work for the hospital system has resulted in 13 Emmy Award nominations and one win for the TV series “Discover Remarkable: At the Heart of Medicine.” Szczypka was promoted to her current position earlier this year and now oversees marketing and communications at the health system’s five regional hospitals. She directed the Be Remarkable advertising program and helped forge sponsorships with the Detroit Lions, Pistons, Tigers and Red Wings and a partnership with Eastern Market to implement the health system’s “Join Me” message encouraging exercise and healthy eating. “Michele’s strong executive presence has enabled her to build the reputation of the marketing and communication team across the executive level and deep into the organization, within the physician community and nationally,” said Mike Gusho, chief financial officer of Mercy Health and Saint Joseph Mercy Health System. When St. Joseph Mercy Ann Arbor treated hundreds of patients during a fungal meningitis outbreak and attracted national attention, Szczypka was integral to effective media communications along with internal communications with physicians and other staff. Assisting women in marketing and communications is also important to Szczypka, a member of Inforum, the Society for Healthcare Strategy and Market Development and Forum for Healthcare Strategists.
AUDREY TAKACS Director of Marketing and Communications, College Advancement and Community Relations, Macomb Community College, Warren Recent education: Master of Business Administration, Marketing, Michigan State University Audrey Takacs has elevated marketing and communications functions at Macomb Community College from print-heavy activity to using a multitude of mediums. Under her leadership, her team of 22 has redesigned the college’s website, implemented a social media strategy and introduced blogging and digital advertising. She also led the development of Macomb’s “Leave Debt Free” slogan, using data showing prospective students worry about going into debt, and a twice-yearly event called Discover Macomb for potential students and their parents. Her team’s work has contributed to Macomb Community College earning Collegiate Advertising Awards, Annual Education Advertising Awards and Educational Digital Marketing Awards. Takacs is known for showing her team how to balance daily challenges, keep the big picture in mind and take risks. In addition to mentoring her team members, she volunteers regularly with youth. “Audrey has demonstrated a strong commitment to volunteerism and youth development through her involvement in, and support of, Winning Futures, a nonprofit mentoring and goal-setting program. Each week, Audrey meets with students at an area school to mentor and lead them through activities that aid their educational and personal development,” said Winning Futures Program Facilitator Bryan Howard.
ANDREA TRAPANI Managing Partner, Identity Marketing and Public Relations, Bingham Farms Recent education: Bachelor of Arts in Journalism, Western Michigan University Andrea Trapani rose from account assistant in 2004 to leading a team of 25 and managing the day-to-day operations of Identity. In the past five years, she’s played a key role in more than 200 new business opportunities, catalyzing the agency’s growth. Trapani, who interacts with every employee and account and takes a hands-on role with multiple clients, took a critical look at where Identity could assert itself as a leader in the industry. As a result, Identity expanded its scope of work and added client services. Identity’s work includes galvanizing the community through unique events, such as curated dinners and giveaways. She used these tools in launching WeWork Detroit and in introducing Southeast Michigan to Hudsonville Ice Cream. In addition, Identity’s public relations work announcing the $50 million expansion of Motown Museum resulted in more than 350 local and national print and digital placements and broadcast segments. She also envisioned and implemented numerous internally focused strategies, including a biannual offsite meeting, flexible work schedules, a micro-incentive platform, and technology that provides reporting and data usually reserved for larger agencies. “If I could sum up Andrea’s professional assets in one phrase it would be that she is both a manager and an innovator. That’s rare and remarkable. I’ve had a front row seat to watch her grow and flourish, and I’ve been fortunate and grateful that her success has been our success,” said Mark Winter, president and founder of Identity.
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SHARON WENZL Senior Vice President, Corporate Communications & Community Affairs, Cooper Standard Automotive Inc., Novi Recent education: Master of Arts in Communications, Eastern Michigan University Auto supplier Cooper Standard promoted Sharon Wenzl to senior vice president in 2016. She has been vital in the branding and promotion of its i3 (imagine, initiate, innovate) process that empowers employees to generate innovative ideas. Since its inception in 2014, i3 has produced $464 million in booked business and resulted in nine major product innovations. Wenzl collaborated with company leadership to develop an updated vision and mission and communicated that vision to 30,000 employees. She directed communications, messaging, branding, media relations and event coordination of Cooper Standard’s expansions in Asia, Mexico and the United States and oversaw the opening of its new Livonia-based Global Technology Center. In addition, she helped formalize the auto supplier’s Careers for Veterans Program and connected with Inforum to create a leadership program for transitioning women veterans. Philanthropically, Wenzl facilitated the establishment of the Cooper Standard Foundation, which has provided more than $10 million to 100 organizations across 18 countries since 2014. Wenzl also helped create a partnership between Cooper Standard and the S.A.Y. Detroit Family Health Clinic. “Through her support, our organization has been able to improve the lives of Detroit’s underserved population, especially children of the homeless,” said S.A.Y. Detroit Charities Founder Mitch Albom.
STEPHANIE WINEMAN CEO/Owner, GACO Sourcing, Birmingham Recent education: Master of Arts in Special Education, Wayne State University “Stephanie Wineman is by far the best partner a company could ask for,” said Julie Cartwright, former EVP, Lionsgate Home Entertainment and Anchor Bay Entertainment. “She works diligently on bringing the absolute best product to life, while watching all costs and timelines. I have worked with her for 15 years and no one compares.” Wineman founded GACO Sourcing, a marketing and promotional company, in 2006. Clients have included Massage Green Spa, IVF Michigan Fertility Center, Xtreme Experience and Plastic Omnium. Over the years, she has assisted in the launch of P.Volve fitness studio and app. A member of the Women’s Business Enterprise National Council, Wineman encourages flexible work schedules for her 16-member, all-female team. “I have worked for and with Stephanie for 13+ years. Hardly a day goes by that she doesn’t amaze me with her ‘can-do – will-do’ attitude and energy. She loves to see everyone here succeed and build their business. Her door is always open for anyone to go to her for advice and help. I can’t tell you how many times she has personally given me successful sales tips. I believe the heart of her business success is built on strong relationships with clients, vendors and her employees,” said Ellie Marcozzi, senior account manager at GACO.
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MICHELLE ZDRODOWSKI HOW WE SELECTED THE NOTABLE WOMEN IN MARKETING
Chief Public Affairs Officer, Great Lakes Water Authority, Detroit Recent education: Bachelor of Arts in Communications/Public Relations, Michigan State University Michelle Zdrodowski, committee chair for the American Water Works Association Communications Council, worked to establish a brand identity and develop internal and external communications strategies immediately after the formation of the Great Lakes Water Authority in 2016. “In two years, Michelle has quickly become one of the most respected communications professionals in water. Without question, the water industry is in an era of unprecedented changes and challenges,” said Christine Spitzley, chair of the Michigan Section of the American Water Works Association. Zdrodowski’s team developed a new website and employee surveys. They also created “One Water News,” the “One Water News Report” — print and video newsletters with new initiatives and team member accomplishments — and “Water Works” magazine, a quarterly publication with inspiration stories by employees for employees. Other initiatives under her leadership include employee town halls and coffees with the CEO. Zdrodowski’s work contributed to GLWA receiving the Association of Metropolitan Water Agencies 2017 Gold Award for exceptional utility performance. “What truly amazes me is the quality and the volume of the product that Michelle and her team produce for GLWA. As an organization formed out of the City of Detroit bankruptcy, it was very clear that transparent and effective communication would be a key component of GLWA’s success,” said William M. Wolfson, chief administrative and compliance officer for GLWA.
The women featured in this Notable Women in Marketing report were selected by a team of Crain’s Detroit Business editors based on their career accomplishments, their involvement in nonprofits and community organizations, and evidence that they mentor others in their field, as outlined in an extensive nomination form that was written by journalists who cover the marketing industry in Michigan. The nominators pay a processing fee to nominate the women; those chosen did not pay to be part of the section. Notable Women in Marketing was managed by Leslie D. Green. For questions about this report, contact Kristin Bull at 313-446-1608 or kbull@crain.com. For more in the Notable Women series, visit crainsdetroit.com/NotableWomen.
CONGRATULATIONS to
Lynne Golodner on being named a
Notable Woman in Marketing!
www.yourppl.com Best in Class: Finance honors stand-out achievements – the deals, people and developments that made the most impact in the last year or so – as well overall excellence in the field. • Multiple categories • Free to submit • • Winners will be announced in the Dec. 3 issue •
NOMINATE BY FRIDAY, OCT. 12 crainsdetroit.com/bestinclass
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24
Civic leader, retired GM executive Bill Brooks dies By Annalise Frank
afrank@crain.com
William “Bill” Brooks, a civic leader and retired General Motors vice president, died Monday. Brooks had a full career with GM, but he was also an entrepreneur, served on many public boards and was assistant secretary for the U.S. Department of Labor’s largest agency. His death was announced Tuesday on Facebook by Paulina Johnson, president of the National Black MBA Association’s Detroit chapter, of which Brooks was a founding member. “Being a founder of the Detroit
William Brooks: Retired GM VP, civic leader.
Chapter and a pioneering leader within the National Black MBA Association is only a hair of the contributions he made to enhance the lives of black people,” Johnson said in the Facebook
post. Brooks was called in to stabilize two struggling companies, Lason Inc. and United American Healthcare Corp., and ran for Detroit may-
or in 2001, according to a Crain’s Minority Business All-stars profile from 2004. He served on public boards of Louisiana-Pacific Corp., DTE Energy Co. and Covansys Corp., as well as held leadership positions in nonprofit and community organizations. He also was a retired U.S. Air Force officer. “Bill and his wife, Betty, have been dear friends to (my wife) Lori and me for 30 years,” Detroit Mayor Mike Duggan said in a statement. “Bill was a true icon in our city, not just as a businessman, but as a community leader and champion for other black business owners. It’s almost hard to believe Bill had time to
Need to know
Businessman died Oct. 1 at 85
Retired as General Motors vice president in 1997 Started entrepreneurial ventures, helped stabilize struggling companies
be successful at his own business because he spent so much of it helping others grow their businesses. But that’s who he was, always supporting and advocating for others before himself. And that may have been the secret of his success.” Brooks left GM beginning in 1989 to become an assistant secretary for
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the U.S. Labor Department’s Employment Standards Administration under then-President George H. W. Bush. He eventually returned to the automaker, from which he retired in 1997. Brooks previously held several other positions in federal government, including in the Office of Management and Budget, Executive Office of the President, the departments of Defense, Labor and Air Force, according to his 1989 nomination. Brooks gave advice to those starting out in business: “Go to a corporation, watch and learn, then go out on your own, and the real issue is to learn how to learn, go into many different areas. The jobs that will be here 10 years from now don’t exist today.” Brooks was born in Ste. Genevieve, Mo. He earned a bachelor’s degree from Long Island University and a master’s in business administration from University of Oklahoma. His wife, Elizabeth “Betty” Brooks, is known for active volunteer work and has served on boards of the Detroit Historical Museum, Motown Museum, Detroit Jazz Festival and Detroit Institute of Arts. He has three children, Bill Brooks Jr., Patricia Brooks and Pamela Tully. Visitation and viewing is scheduled for 4-8 p.m. Monday at Boulevard Chapel at 806 E. Grand Blvd., according to a Swanson Funeral Home representative. The funeral service is 11 a.m. Tuesday at Sacred Heart Church at 1000 Eliot St. in Detroit.
• 82% save the Book of Lists issue
Ambassador acquired by Apollo Globalowned company
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By Annalise Frank
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Apollo Global-owned West Corp. Wednesday acquired Ambassador Software, a referral marketing company out of Royal Oak. Ambassador makes off-the-shelf and custom software for businesses, letting them set up reward programs for customers who refer their friends and social networks. Co-founder and CEO Jeff Epstein declined to disclose the price in an interview. He announced the news of the relationship marketing firm’s takeover in a blog post Wednesday. He and co-founder and CTO Chase Lee will remain on in roles yet to be solidified — likely as vice presidents of West, Epstein told Crain’s. He also expects all 40 employees to stay on. Omaha, Neb.-based West develops technology-based communications solutions. It takes on Ambassador as it grows its customer experience platform, according to a news release. West serves “most of the Fortune 500,” Epstein wrote in the blog post. Ambassador is West’s sixth acquisition this year. Its parent, New Yorkbased Apollo Global Management LLC (NYSE: APO), is among the world’s largest private equity funds.
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HOCKEY FROM PAGE 3
It’s also a registered trademark, along with the Winged Wheel logo. Using “Hockeytown” as a fan-base reminder of the team’s glory years and to reinvigorate their sense of community is one strategy. So is playing defense against any suggestion that anywhere else is Hockeytown. Sports Illustrated pondered in a story for its Dec. 10, 2007, edition whether Detroit still deserved to be called Hockeytown (the team won its 11th Stanley Cup 177 days later). More recently, ESPN published an online story in May under the headline “Sorry Detroit, Las Vegas is the new Hockeytown” as part of the network’s coverage of the expansion Las Vegas Golden Knights’ improbable Stanley Cup playoff run. That irked fans, but the team largely shrugged it off. The “Hockeytown” logo is trademarked, after all. And the Golden Knights haven’t won squat compared with the Wings. “It’s not that sensitive because quite frankly, we know who we are,” Turnbull said. Still, the “Hockeytown” refresh feels slightly protective. The rebrand retains “Est. 1926” as a reminder of how long the Red Wings have been in the NHL. And the logo formally reads as “Welcome to Hockeytown” which subconsciously highlights the long-established geographic link to Detroit, home to a U.S.-best 11 Stanley Cup championships, and to the sport itself. “Over the years, other places, on social media or in the press, say they’re the new Hockeytown. No. This is Detroit. We are Hockeytown,” said Jamie Michelson, owner and president of Troy-based advertising agency SMZ, which handled the “Hockeytown” refresh. “There’s fight and pride for what that means. It was never going away.” SMZ has done advertising and brand work for the Red Wings for a decade. Talks about sprucing up the “Hockeytown” messaging began last year, Michelson said, and picked up early in 2018. The new “Hockeytown” logo is part of a series of 15-second videos circulating on the team’s social media channels, and those will be used along with longer online and TV spots. The campaign is the product of research with season ticket holders and with casual fans, and focus groups to get reaction to campaign design and logo concepts, Michelson said. “We worked early this year exploring ways to refresh, rework and reinvigorate Hockeytown to increase fan participation and emotional bond to the team,” Michelson said. “It was really doing something the right way, which is what the Wings organization does. We captured thoughts of people inside the team and organization. What does it mean and could it be in the future?” A sense of togetherness as Wings fans was a major theme. “Fans really see themselves as deeply part of Hockeytown, and Hockeytown is a community,” Michelson said. Communities are woven together by something, and in this case, it’s the Red Wings and Hockeytown, and that led to the jersey lettering concept. “When you have great pride around a team, you wear that sweater or jersey. The stitching, letters and fabric were one natural concept that came out of it,” Michelson said. “The casual fan to (team General Manager) Ken Holland reacted really well to it. It just felt right.” Marketing campaigns work best when the team is successful. The Red Wings are widely expected this season to be among the worst NHL clubs, so it
DETROIT RED WINGS
The Detroit Red Wings and their advertising agency, Troy-based SMZ, have refreshed the “Hockeytown” logo first introduced in 1996. The primary logo now uses a fabric-like typeface reminiscent of player jersey nameplate.
makes sense to appeal to nostalgia, community and hope for the future. “It is more of a challenge when
there’s uncertainty about how the team will be in the future, but I do think there’s a lot of fan belief in what is going
on right now with the drafts and these young players. It’s not going to be as painful a rebuild as they’ve seen in other sports or teams,” Michaelson said. “Hockeytown” is more than wins and losses, Turnbull said, and fans know that the Red Wings and Detroit have earned the label. “The earned element of what it represents in people’s minds. That was an important influence,” Turnbull said. “It’s a rallying cry. The element of Detroit was critical in its development. There’s a little bit of an attitude that’s in it. It’s a clean mark. There’s a sense of Detroit, a sense of winning. Winning will come back.” Gary Topolewski was part of the team at Bozell that ginned up “Hockeytown” for the Red Wings. The wording was taken from more than a hundred ideas pinned to a corkboard, he said.
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The thinking was that it would appeal to not just Red Wings fans, but also to the wider community of youth, college and beer league players in the region. “It was simple, and it made sense and it embraced everybody. It wasn’t a branding idea meant to sell tickets,” he said. “It doesn’t hurt that the Red Wings won the Cup two years in a row around that time.” “Hockeytown” also was picked because it would have legs in leaner years. “You need something to build up equity in the brand when the times aren’t good,” said Topolewski, who today is co-partner in a boutique strategy and creative agency in Hermosa Beach, Calif.-based called Estota. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19
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DMC
and Kaki began practicing last week at Ascension St. John Hospital in Detroit, and possibly other hospitals, and are negotiating directorship contracts with St. John. An official for Ascension St. John declined comment.
FROM PAGE 1
Alsafi, a 47-year-old Iraqi woman, hours after an angioplasty at DMC Harper University Hospital. In January 2017, Alsafi’s estate filed a medical malpractice and wrongful death lawsuit against Tenet, two DMC hospitals, cardiologist Delair Gardi and two former DMC cardiology fellows. Gardi, one of the top producers at DMC, heads up Heart and Vascular Consultants, which has offices in Detroit and Livonia. One of Gardi’s attorneys, David Williams in the Southfield office of Jaffe Raitt Heuer & Weiss, confirmed to Crain’s that the civil lawsuit is still pending. While quality for DMC’s Cardio Team One has been high for a range of complex heart and vascular procedures, outcomes over the past five years have declined somewhat and been uneven because of staff cuts, several patient deaths and a growing number of unnecessary or risky procedures conducted by some cardiologists, six DMC doctors and other sources told Crain’s. Moreover, cuts at DMC the past three years have reduced staff in some departments to “skeleton levels,” according to cardiologist Mahir
DMC takes action Tony Tedeschi: Seeking doctors who fit culture
Ted Schreiber: Headed Cardio Team One
Elder and Schreiber, two of the four cardiologists accused last week by DMC of violating unspecified standards of conduct. Schreiber, Elder, Amir Kaki and Tamal Mohamad have been top cardiologists at DMC for years. Schreiber is the former president of DMC’s Cardiovascular Center and head of Cardio Team One. Elder was medical director of the cardiac care unit at DMC Harper Hospital and a two-time Crain’s Health Care Hero. Mohamad was chief of cardiology and medical director of the cardiac care unit at DMC Detroit Receiving. Kaki was medical director of the cardiac catheter lab at DMC Cardiovascular Center and practices at DMC Sinai-Grace Hospital. Sources told Crain’s that Schreiber
Last Monday, DMC CEO Tony Tedeschi and DMC hospital President Scott Steiner emailed more than 5,000 employees to announce DMC had terminated cardiologists Elder, Kaki and Mohamad from their administrative positions. They also announced the resignation of Schreiber from the staff. DMC accused the four of unspecified misconduct related to complaints. The four doctors have denied DMC’s allegations. Elder and Schreiber told Crain’s they were punished for speaking out about staffing and quality concerns they contend are jeopardizing patient safety. A DMC spokesman has denied that the cardiologists were demoted for any other reason than a failure to maintain Tenet’s standards of conduct. “Any suggestion that these leadership transitions were made for reasons other than violations of our standards of conduct is false,” a statement from DMC said. “The leadership transition is
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AUTOMOTIVE Allen Darnell Mobiliti
Eugene Furman Mobiliti
John Canales Mobiliti
Allen Darnell joins Mobiliti as the chief strategy and technology officer. He brings extensive experience in the mobility and travel industries, having previously served as chief technology officer for Silvercar, chief operating officer for engineering firm iSeatz, and technical leadership positions within Hotels.com and Expedia. In his new role, Darnell will lead Mobiliti’s strategy, as well as in-house and offshore development and design teams.
Eugene Furman joins Mobiliti as the vice president of marketing. In this role, he will oversee all marketing and advertising operations. Furman brings with him more than a decade of successful brand building experience, having supported General Motors and Ford Motor Company across top creative agencies, domestically and internationally.
John Canales joins Mobiliti as chief sales officer where he will oversee dealer relations and corporate sales initiatives for the company. Canales is a 15-year veteran of the automotive industry, having run several successful dealerships, and selling integrated platform solutions to many of the most prominent dealer groups in the U.S. Previously, he served as director of strategic accounts for Cox Automotive.
FINANCIAL SERVICES
LEGAL
PUBLIC RELATIONS
Kathryn Katz J.P. Morgan Private Bank Kathryn Katz has joined J.P. Morgan Private Bank as Head Wealth Advisor for the Michigan market. In this role, Katie assists clients with estate planning, family governance, fiduciary matters and philanthropy. Katie is a current board member of City Year Detroit and Citizen Detroit and is an advisor to several other nonprofit and community groups throughout southeastern Michigan. She formerly served as a board member for the DIA’s Founders Junior Council.
Robyn Lederman Brooks Kushman Brooks Kushman, a leading intellectual property and technology law firm, has appointed Shareholder Robyn Lederman to serve as Co-Chair of the firm’s Trademark practice. Robyn joined Brooks Kushman in 2002 and has been instrumental in growing and developing the firm’s global footprint and expertise in trademark law. She has more than 25 years of experience in both U.S. and international trademark law, and her clients include some of the world’s most prominent brands.
Antonice Jackson, MPS Truscott Rossman Antonice Jackson, communications manager at Black Women’s Health Imperative and president of the National Black Public Relations Society of Washington, D.C., will join Truscott Rossman’s growing Detroit office as senior account executive. The Michigan native has held previous positions in event promotion and digital marketing and was a public affairs specialist at the U.S. Consumer Product Safety Commission. She was named a “Top 25 African American PR Millennials to Watch” by Huffington Post.
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the result of a thorough review led by outside counsel into complaints from other physicians and team members.” Crain’s reached out to the four doctors or their representatives for explanations. They said they had reported quality problems within their department that included substandard care by other doctors and employees and said they felt obligated to do so because of concerns for patient safety. In an interview with Crain’s last Tuesday, Elder said poor quality and lack of staffing at DMC have led to preventable patient deaths; inexperienced and unskilled doctors conducted heart procedures that led to poor outcomes and death in some cases; and staff and service cost-cutting have created patient safety problems. When contacted later in the week, Elder declined further comment. But the staff cuts and quality problems are not limited to the cardiology program, several sources said. An orthopedic surgeon who requested anonymity told Crain’s last week that DMC surgeons continue to see examples of dirty surgical instruments and trays that have to be sent back to the sterile processing department. In 2016 and 2017, the Michigan Department of Licensing and Regulatory Affairs and the Centers for Medicare and Medicaid Services investigated reports of dirty surgical instruments and infection control problems. DMC was cited for multiple violations of federal and state quality regulations. DMC later was given a clean bill of health and has since restructured its sterile processing department. “The surgical instrument sterilization process at the DMC is significantly better, and I don’t believe that there’s another health system around that is as focused on this process as the DMC,” Joseph Lelli, surgeon in chief at Children’s Hospital of Michigan, said in a statement. A second source confirmed that an orthopedic surgeon conducting a knee replacement operation opened a surgical kit and it had “bloody” instruments in it. The surgeon expressed frustration but completed the surgery after receiving a replacement kit, the two sources said. “While no process is perfect, we have a very reliable process with checks and balances so that any errors detected never reaches the patient,” Brian Little, specialist in chief, DMC Orthopedics, said in a statement in response to Crain’s inquiries. Officials from Tenet in Dallas did not provide executives to comment on this story. According to multiple sources who requested anonymity, Elder, Kaki and several other principals and founding members of DMC’s Cardio Team One were on the verge of resigning their positions early last week. They felt frustrated because they said DMC and Tenet have ignored quality issues, failed to take action against several substandard cardiologists and also have cut staffing to what they consider unsafe levels. In a statement Friday, Tedeschi responded: “Making changes in physician leadership is never easy. We are focused on bringing world-class physician leaders to the DMC’s cardiology program and an important part of what we’re looking for is doctors who can uphold the culture that the DMC was founded on. The 11,000 men and women of the DMC are committed to providing safe, high quality care to the people of Detroit.” Under the terms of a $513 million settlement with the U.S. Department of Justice in 2016, Tenet must comply with a corporate integrity agreement and report to the DOJ a variety of internal
Mahir Elder, M.D., fired back at DMC last week after his forced resignation from his cardiology leadership role. CRAIN’S DETROIT BUSINESS
compliance issues. The settlement was based on alleged bribes, kickbacks and health care fraud of Medicaid patients at Tenet’s former Atlanta subsidiaries.
A profit center Since the mid-2000s, DMC’s cardiology program has been one of the hospital’s largest profit centers, according to DMC sources and data provided by American Hospital Directory of Louisville. Those profit margins have declined in recent years, hospital insiders say. One of the reasons DMC’s cardiology program became so profitable is that it moved from being an academic-based program to private practice under former CEO Mike Duggan, now mayor of Detroit. Sources familiar with the history of Wayne State’s cardiology department told Crain’s the medical school had more than 15 practicing cardiologists at DMC in the mid-2000s. Now it has five, and they are limited in what procedures they can do at DMC. Kim Williams Sr., M.D., former director of Wayne State’s cardiology department from 2010-2013, confirmed there was a transition of academic cardiologists to private cardiologists over a 10-year period. He said the numbers of Wayne State cardiologists dropped from 10 to four under his watch. “Private practices were put in charge by DMC for most of the services,” said Williams, who now is head of cardiology at Rush University Medical Center in Chicago. “That meant (private doctors were) paid directors and had control of the schedule. We had less people, and that enabled the hospital to generate more revenue. ... The last time I heard, about 40 percent of the income from the hospital system was coming from cardiology services.” When Schreiber was hired in 2004 from Beaumont Hospital by Duggan, DMC’s cardiology program was in “total disarray and providing mediocre service to the inner-city residents of Detroit,” Schreiber said in a statement to Crain’s. He quickly instituted quality controls, increased staffing and began recruiting private cardiologists to boost volume, sources said. Schreiber and DMC were rewarded with great success, improving outcomes and generating high profits for DMC, which nearly went bankrupt in 2004, and now sports one of the best “door-to-balloon” treatment times in the nation at about 50 minutes. The
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faster emergency patients can be sent to the cardiac cath lab to receive angioplasty or other vascular or heart procedures, the greater chances they have to save tissue and lives. The Journal of the American Heart Association published a study recently that concluded that the probability for survival of cardiac arrest patients in the city of Detroit has been improved by 70 percent since Cardio Team One was created, Schreiber said in a statement. But in recent years, two sources told Crain’s, Schreiber became increasingly concerned that hospital administrators were more interested in boosting revenue and profits and not as concerned with maintaining quality. For example, when Schreiber wanted to remove bad cardiologists from the procedure or on-call rotation, management objected because some of those doctors were high producers and given more time for patients, sources said. Nationally, while once a highly profitable service line at hospitals, cardiology has been facing declining volume, declining reimbursement and declining profit margins. Moreover, reimbursement per cardiac catheterization procedure is down, primarily driven by lower payments from Medicare, which represents more than half of the annual 600,000 procedures each year. Despite an aging population, Williams said the decline in catheterization procedures have occurred because of improved stent technology and the use of beta blockers and other medical treatments of patients. But there has been much pressure placed on cardiologists at DMC to increase profitable cardiac catheterization volume, sources said, adding that cardiology revenue and profits have dropped more at DMC than at other competing hospitals. Cardiologist Joel Kahn, who was recruited by Duggan and Schreiber in 2011 to be DMC’s corporate director of preventive cardiology, told Crain’s that DMC cardiologists who did not meet weekly procedure quotas were subject to pressure and ridicule. “During my time at DMC (until 2013) I experienced a culture of numbers and productivity that was stronger than culture of quality and patient care,” Kahn said. At DMC, “there were weekly reviews of targets for production,” said Kahn, noting that every Wednesday morning Schreiber and Duggan held meetings with 70 or more doctors and executives to talk about production. “(Administrators) made it very clear only accept-
’S S DETROIT C R A I N ’ S D E T R O IC TRAIN BU I N E SBUSINESS S // O C T O B E R 8 , 2 0 1 8
able behavior was to make or exceed numbers — at any cost.” A DMC cardiologist, who asked for anonymity, said cardiac catheterization procedures have dropped at DMC for several years. For example, procedures at Sinai-Grace Hospital have declined by 90 percent from about 40 cases per week to about seven, primarily because of the DOJ investigation. The source said Harper cardiac cath procedures have slowed and are about 10 percent lower than they were several years ago. Overall, however, cardiac catheterization inpatient and outpatient charges at Harper and Sinai-Grace hospitals have steadily increased from $134.2 million in 2015, $140.2 million in 2016 and $145.3 million in 2017, according to Medicare cost reports filed by the hospitals and provided to Crain’s by American Hospital Directory. However, that increase has primarily been fueled by Harper, as Sinai-Grace catheterization charges declined from $32.3 million in 2015 to $27.5 million in 2016 and stabilized in 2017, AHD said.
Raid and investigation The DOJ investigation had widened this year from looking at various problems with DMC’s cardiology program to the use of employed nurses to provide services to private practice doctors. Tenet disclosed the DOJ investigation in a federal securities filing in February, but it has declined interviews on the subject. Sources familiar with the case tell Crain’s that the DOJ investigation began two summers ago with FBI agents raiding the Livonia and Detroit offices of cardiologist Delair Gardi, who practices at hospitals affiliated with DMC and St. Mary’s Hospital in Livonia and is one of DMC’s largest cardiovascular volume producers. FBI agents sought documents on Gardi and others in his practice. Three sources told Crain’s that federal investigators seized boxes of documents at his two offices and also at St. Mary’s Hospital and at DMC hospitals. Officials for DMC and St. Mary’s declined comment. Gardi has been unavailable for comment the past month. Williams confirmed the civil lawsuit against Gardi, DMC and Tenet is still pending. However, he told Crain’s in an email statement that the DOJ now is conducting a civil investigation into Gardi. He declined further comment. Crain’s has also reviewed legal docu-
ments and emails related to a medical malpractice lawsuit filed in January 2017 against Gardi, two fellows, Tenet and DMC by the estate of Radieh Alsafi, who died after an angioplasty procedure performed by Gardi. Alsafi came to the Harper Hospital emergency department on July 20, 2014. Her symptoms improved with medication and she was transferred to the intensive care unit and later to a medical floor, according to the lawsuit. However, Alsafi refused to receive stents in an angioplasty procedure and wanted only medical management, according to nurses’ notes, the lawsuit said. Several doctors and nurses examined her over the next few hours and noted no chest pain, no edema and no shortness of breath. Early on the morning of July 22, Gardi conducted a catheterization procedure on Alsafi. It was later found that a consent form signed by two nurses earlier that morning contained “language regarding stents.” It is not clear, however, how the nurses knew Alsafi had changed her mind because Alsafi, who is from Iraq, didn’t speak English and the nurses didn’t speak Arabic. The catheterization procedure was conducted despite Alsafi’s previous statements she didn’t want stents, the lawsuit said. A few hours after the operation, Alsafi began experiencing problems. She died at 7:29 p.m. Williams said the charges leveled against Gardi in that lawsuit have been investigated by the DOJ. “That case has also been reviewed by numerous experts/cardiologists who supported the treatment provided to that patient by Dr. Gardi,” Williams said in an email statement to Crain’s. “After that thorough investigation, the Department of Justice declined to pursue the matter. As the numerous experts opined, the patient was very ill, with end-stage cancer and the treatment provided was appropriate.” However, another cardiologist hired by Alsafi’s estate found that the care provided by Gardi “deviated from the standard of care” in 18 ways, according to David Koenisberg, M.D., a doctor licensed in Illinois, in a Jan. 1, 2017, affidavit. The Alsafi case also includes court filings, dated Sept. 24, that confirm that a DOJ investigation is continuing. Two sources said the probe is looking at whether testing and stenting procedures conducted by Gardi and some of his partners or associates and also at DMC and St. Mary's hospitals were unnecessary. Two sources told Crain’s that the DOJ has investigated whether Gardi billed health insurance payers at 100 percent for services provided by nurse practitioners, when midlevel providers are only allowed to bill at 85 percent of a physician’s rate, sources familiar with the case said. They said Gardi also allowed nurse practitioners to conduct services as a physician when he was out of the country. The DOJ investigation also is looking at whether administrators at DMC Sinai-Grace Hospitals made excessive payments to cardiologists to cover emergencies on a 24-hour basis. Two sources told Crain’s that executives at Sinai-Grace paid cardiologists up to $3,000 a day to be at the hospital for the 24-hour shift, but many times doctors went home during the night and were not immediately available for emergencies. Most hospitals, including Beaumont and DMC, pay specialists like cardiologists, thoracic surgeons and neurologists $1,500 per day to be on call, meaning they need to be close enough to the hospital to respond within 30 minutes.
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However, DMC’s Cardio Team One promises in-house cardiologists on a 24-hour basis. One DMC doctor, who asked for anonymity, said Tenet informed DMC to stop paying the $3,000 and allow doctors to go home. The practice has stopped at Sinai-Grace, which has led to a dramatic reduction in procedures, two sources said. In a compliance review of time sheets, DMC found only two of 10 cardiologists were staying the full 24 hours. For example, two sources said one patient had a heart attack in Sinai-Grace emergency department. The ER physician called the in-house cardiologist and he did not show up quickly enough and the patient died.
DMC reaction Two sources also told Crain’s that DMC’s advisory board has met at least once in the past two months with Tenet board members and executives to dis-
cuss the investigation, cost-cutting at DMC, anonymous quality complaints and the compliance investigation. A DMC source told Crain’s that Tenet also recently has taken serious anonymous complaints filed under the anonymous MIDAS internal complaint system. This led, in part, to DMC’s contract terminations of the three cardiologists and the resignation of Schreiber. Others say the complaints were an excuse for the terminations, as it is common for hospital workers to complain about one another. Earlier this year, Tenet hired Latham and Watkins LLC, a Los Angeles-based law firm, to review employee and doctor complaints, compliance and quality-related issues at several DMC hospitals, according to several reliable sources familiar with the investigation. A spokesman for Latham and Watkins was unavailable for comment. Jay Greene: (313) 446-0325 Twitter: @jaybgreene
JOB FRONT POSITIONS AVAILABLE ArcelorMittal USA LLC has an opportunity for an Engineer, Automotive Applications – Co-Engineer at its Southfield, MI location. This position will be responsible for proposing and evaluating lightweight steel design concepts for future vehicles that support ArcelorMittal’s strategic objectives and steel product portfolio. This position requires a Master’s degree or equivalent in Mechanical Engineering, Materials Engineering, Automotive Engineering, or a related field. Must also have demonstrated ability with each of the following: 1) analyzing automotive body structures and various vehicle subsystems; 2) utilizing Finite element methods and conducting linear & nonlinear analysis using Optistruct, Nastran, or LS-Dyna; 3) using structural optimization methods including Topology or Free-Shape for developing lightweight designs; and 4) performing FEA simulations and design optimization as a full-time employee or intern in the automotive industry. Employer will accept experience gained concurrently. Will accept experience gained before, during or after Master’s program. Apply online at: http://usa.arcelormittal.com/people-and-careers/job-opportunities/search-salaried-positions refer to position Engineer, Automotive Applications – Co-Engineer. ArcelorMittal is an EEO Employer: race, age, color, religion, sex, sexual orientation, gender identity, national origin, disability, veteran status, and other legally protected characteristics.
MARKET PLACE MISCELLANEOUS EXECUTIVE DIRECTOR MICHIGAN TOWNSHIPS ASSOCIATION The Michigan Townships Association (MTA), a state-wide 501(c) 4 not-for-profit that serves township officials in the state and recognized as one of the most progressive associations in the country, is seeking a new executive director to start July 1, 2019. The executive director is responsible for MTA’s advocacy, education, communications and knowledge center, and daily operations. Additional information can be found here:
http://msae.org/MSAE-Executive-Search/MTA
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RAMCO FROM PAGE 1
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The company’s new CEO, Brian Harper, said on a conference call following its second-quarter earnings report that the downsizing is part of a broader organizational shift. Harper came to Ramco-Gershenson from Rouse Properties, a real estate investment trust in New York City, which he led as CEO for two years. He called it “an immediate streamlining of staffing to eliminate redundancies including but not limited to those created by the two region structure as we position the company for the future,” according to a transcript of the call. “In total, we expect these actions to result in approximately $2 million in annual net cash savings.” He called the shrinking of the Michigan space “the planned rightsizing and rebranding of the corporate Farmington Hills office in 2019.” It’s not known whether additional layoffs are on the horizon.
New office, board changes According to a company presentation filed with the Securities and Exchange Commission, the New York City presence “provides management with greater access to investors, bankers and retailers.” The new office comes at the same time as the departure of former president and CEO Dennis Gershenson from his chairman position on the company’s board on Sept. 6. “I am delighted with the progress that the company's new chief executive officer, Brian Harper, has made during his initial months at the company’s helm and with the leadership team that he has assembled,” Gershenson said in a press release. Harper was named president and CEO in April and started his new post June 15, taking over for Gershenson, who had been president and CEO since 1996. “I am confident that the company is in capable hands and that its future is bright, thus I am comfortable stepping away from the chairmanship and, when my current term as trustee
MISSION FROM PAGE 3
On behalf of our entire organization, we extend our heartiest congratulations to FRANK REWOLD & SON, INC. for completing 100 years of success. You have always been providing excellence in construction and contracting services. Companies like yours with a brilliant team of dedicated workers and with a friendly work environment can only aim for high results. Working with your organization has been a real honor and we value each and every project that we have been a part of. With your commitment and sincerity, you have time to time proved your worth and have gained the much-deserved recognition and fame. With your services, the community has gained a lot. You have always kept customers satisfaction as your priority. We wish you all the success for many more years to come. And we hope to continue doing business with you in future. Happy 100th Anniversary! The Team at Casadei Steel, Inc.
“Business has to be more involved in helping to lift up society,” Dimon said. “It can’t just be government.” Dimon said the trend of corporate responsibility in buoying Detroit was led by Gilbert, who has shown how successful companies can be in influencing positive change. “Corporate executives have always led the economic well-being of their towns,” Gilbert said. “When you have a mission that’s above profits, you just do better. There’s no chance we’d be where we are today without that. This can happen in any town in America.” Gilbert said investing in Detroit is reaping benefits for his family of companies as well — proving philanthropic efforts aren’t totally altruistic. “Talent is coming to us; talent is everything,” Gilbert said. “These other CEOs here today also share a genuine interest in doing the right things for society.” Gorsky said Johnson & Johnson began to see its role for investment in communities across the U.S. in 2011, when it began sourcing innovation externally, by installing innovation centers and labs near college campuses across the U.S. Now 50 percent of its innovation comes from outside its walls, Gorsky said.
“I am delighted with the progress that the company’s new chief executive officer, Brian Harper, has made during his initial months at the company’s helm and with the leadership team that he has assembled.” — Dennis Gershenson, former president and CEO
is completed, from the board,” Gershenson said in a statement. The company also said that Andrea Weiss, the founder, president and CEO of Retail Consulting Inc., has been appointed to its board. She also is a board member for Lebanon, Tenn.-based Cracker Barrel Old Country Store Inc. and Philadelphia-based NutriSystem Inc.
Portfolio 'misunderstood' It has a market value of $1.07 billion and its stock closed at $12.66 per share Thursday, according to MarketWatch. The REIT had $265 million in revenue in 2017, compared to $260.9 million in 2016 and $251.8 million in 2015. The company says its real estate portfolio is 13.6 million square feet across 56 properties with an annualized base rent of $14.91 per square foot. Its portfolio is 93.9 percent leased. “My decision to join RPT was based on several factors, but at the top of the list is the opportunity to unlock shareholder value within a portfolio that I believe is both misunderstood and undervalued with a tremendous amount of potential upside,” Harper said during the Q2 earnings call, according to the transcript. Under Harper, the company has hired a new executive vice president of leasing, Tim Collier; a new senior vice president of development, Jonathan Krausche; and a new EVP and CFO, Mike Fitzmaurice. All are based out of New York City. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB Gorsky said his company is using “academic momentum” to invest in education and workforce. It currently has labs in Boston, London, San Francisco and San Diego. Johnson & Johnson is also currently exploring opening a lab in partnership with University of Michigan, he said. All of the executives expect public-private partnerships, like JPMorgan Chase has in Detroit, to grow across the U.S., as long as government officials are receptive. They said Detroit Mayor Mike Duggan really made investment in Detroit a reality. “This mayor changed everything,” Dimon said. “Most of the issues cities face have nothing to do with politics and the mayor and governor here (Gov. Rick Snyder) get that.” Dimon also took a swipe at New York City Mayor Bill De Blasio. “I’ve seen Duggan in New York more than I’ve seen De Blasio,” Dimon joked. Gilbert also complimented Duggan and Snyder for their roles in helping business get involved in civic and entrepreneurial programs without partisanship. “The mayor and governor — I don’t even think about who is a Republican and a Democrat,” Gilbert said. “I forget a lot of times, I do.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh
C R A I N ’ S D E T R O I T B U S I N E S S // O C T O B E R 8 , 2 0 1 8
PACT
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“The whole situation just doesn’t add up,” said Catherine Karol, counsel for Detroit-based law firm Butzel Long PC, who spent 38 years in the legal office at General Motors Co. “This is really just going to raise costs for automakers and suppliers and those costs get passed down to the consumer eventually. An increase in car prices means a decrease in car sales and, therefore, a decrease in jobs. It’s hard to see how this translates to jobs growth in the U.S.”
Big changes for cars The agreement calls for upping auto parts content made in North America to 75 percent from the current 62.5 percent, starting in 2020. This means 75 percent of the parts of every car and truck sold in the U.S. must come from the U.S., Canada and Mexico. Roughly 30 percent of the 2.33 million vehicles imported to the U.S. from Mexico in 2017 don’t meet the current 62.5 percent content requirement, Mexican Economy Minister Ildefonso Guajardo told Bloomberg TV in August. But only three vehicles imported to the U.S. — Nissan Versa, Audi SQ5 and the Fiat 500 — are above that 62.5 percent threshold and below the new 75 percent requirement. Those three vehicles sold a combined 177,097 units in the U.S. last year, according to Mexican manufacturing publication Manufactura. Kristin Dziczek, vice president of industry, labor & economics at the Center for Automotive Research in Ann Arbor, said the cars that don’t meet this standard are far more likely to simply pay
the standard World Trade Organization-dictated tariff than move production to the U.S., because it’s simply more economical, or they’ll just stop serving the U.S. market. “I think there will be cars that come from Mexico that just pay the 2.5 percent tariff because they already do,” Dziczek said. “Or they just go away.” Mexico currently has free trade agreements with 46 countries, compared with just 20 for the U.S., allowing it greater access to the world market. To combat manufacturers from dumping more production into lowcost Mexico to meet the new content requirement, the White House added another wrinkle by requiring cars and trucks to have at least 30 percent of the vehicle production from workers making at or above $16 per hour, going up incrementally to 40 percent by 2023. This requirement is a shot at manufacturing in Mexico, where the average wage for auto assembly workers is $7.34 per hour and $3.41 per hour for parts supplier workers, compared to $29.08 per hour and $19.84 per hour in the U.S., respectively, according to research by the CAR. But, again, the math doesn’t add up to move production. It’s still more likely manufacturers would opt to pay the 2.5 percent WTO tariff for importing into the U.S. than raise the wages of its assembly workers in Mexico by nearly 300 percent, Dziczek said. And many already meet that requirement, she said.
29
as long as they meet content and wage rules, until the total reaches $32.4 billion annually. Same for Mexico up to $108 billion annually. However, the quotas may never be hit: U.S. auto sales peaked at record levels the last few years and only $75 billion in parts were imported from Mexico last year and $23 billion from Canada. Car imports from Canada and Mexico will also face a quota of 2.6 million units for each country. Last year, Canada exported 1.8 million units to the U.S. and 2.3 million from Mexico. This does, theoretically, prevent a
massive increase in production in those countries for the U.S. market, but the quotas are unlikely to increase production in the U.S. Car sales in the U.S. peaked at 17.5 million units in 2016, a record year. But much of the car sales are tied to people finally getting into a new vehicle post-recession, Dziczek said. It’s unlikely U.S. car sales will reach that pinnacle again anytime soon. “It’s the wrong part of the business cycle for anyone to be doing a lot of investment or expanding jobs in the U.S.,” Dziczek said.
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CUSTOMER SERVICE Single copy purchases, publication information, or membership inquiries: Call (877) 824-9374 or customerservice@crainsdetroit.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com Crain’s Detroit Business is published by Crain Communications Inc Chairman Keith E. Crain Vice Chairman Mary Kay Crain President KC Crain Senior Executive Vice President Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except 1st issue in January and last issue in December, by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in U.S.A.
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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 // O C T O B E R 8 , 2 0 1 8
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THE WEEK ON THE WEB
RUMBLINGS
Feds eliminate special designation from Willow Run, others
Skyscraper on Hudson’s site may grow to 912 feet
SEPTEMBER 28-OCTOBER 4 | For more, visit crainsdetroit.com
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T
he American Center for Mobility in Ypsilanti Township is losing its federal designation as an autonomous-vehicle testing ground after the U.S. Department of Transportation on Thursday stripped the designation from all similar facilities as part of guidelines it set for autonomous driving systems. Backers of the Willow Run project hoped the designation would leverage additional funding as the center continues to expand. A document rescinding the designation for Willow Run and nine other sites and outlining guidelines for autonomous vehicles was released Thursday by the Trump administration. The state of Michigan approved $35 million for the nonprofit controlling ACM, Willow Run Arsenal of Democracy Landholdings LP, to support the construction of the first phase of the center, which opened last December. The site, however, has been largely supported by the private sector, buying sponsorships to use and market the site. Earlier this year, Subaru joined AT&T, Toyota Motor Corp., Ford Motor Co., Hyundai America Technical Center Inc., Adient Ltd., Microsoft, Visteon Corp. and others in funding the $135 million build-out of ACM. But federal funding was always part of the model to pay for the center. “It’s a designation that puts us above and beyond other facilities doing work in this space that won’t have the relationships we’ll now have with regulators,” Doug Rothwell, CEO of Business Leaders for Michigan and an American Center for Mobility board member, told Crain’s in 2017. “Hopefully, this gives us an advantage in competing for federal dollars.” The U.S. DOT said the rapid rise of the technology has created a competitive environment that doesn’t require the designation. The document said the DOT “recognizes that given the rapid increase in automated vehicle testing activities in many locations, there is no need for U.S. DOT to favor particular locations or to pick winners and losers.” Losing the designation doesn’t mean ACM can’t secure federal funding. But it will have to compete with a broader pool of applicants.
BUSINESS NEWS J The owners of Provisions in Ferndale plan to celebrate the store’s oneyear anniversary by opening a new chocolate, cheese and charcuterie business in Midtown. They plan to open on Cass Avenue with quadruple the offerings of their original storefront inside Farm Field Table and under a new name: Mongers’ Provisions. J A handful of cuts have been made at Garden Fresh Gourmet as talks swirl about a potential sell-off from the Ferndale food maker’s parent company Campbell Soup Co. Campbell spokesman Tom Hushen told Crain’s that the Camden, N.J.-based
AMERICAN CENTER FOR MOBILITY
The American Center for Mobility in Ypsilanti Township is among the facilities losing federal designation as an autonomous-vehicle testing ground.
Detroit digits A numbers-focused look at last week’s headlines:
31
The number of Michigan branches Huntington Bank plans to close.
$5 billion
The record amount the University of Michigan has reached in its Victors for Michigan fundraising campaign.
10
Number of months Delphi Technologies President and CEO Liam Butterworth spent on job before resigning last week.
company “recently made minor organizational changes based on the needs of business.” J The city of Southfield is looking for qualified developers to build a mixed-use development at its vacant 8.15-acre “EverCentre” property. This is the second time a request was issued by the city to build a downtown at the corner of Evergreen Road and Civic Center Drive. J Medline Industries Inc. is planning to create 75 jobs and invest $5.9 million to $13 million in Romulus over the next five years. The Illinois-based medical supplies giant plans to lease a 420,000-square-foot building in the Wayne County city, boosting its distribution capacity to meet growing demand, according to a news release from the Michigan Economic Development Corp. J Dan Gilbert’s team has tapped Rossetti Inc. to create the master plan for the redevelopment of the Brewster-Douglass housing projects site. The $300 million-plus project, announced earlier this year, is slated to include 913 residences: 648 apartments and 265 for-sale units spread across approximately 22 acres and dozens of buildings of varying heights off I-75 south of Mack Avenue near the Brush Park neighborhood. J Nearly two dozen people were detained by Detroit police last Tuesday afternoon as hundreds of fast-food and other service industry workers gathered as part of the Fight for $15 minimum wage and labor rights push. U.S. House of Representatives
candidate Rashida Tlaib and Abdul El-Sayed, the former candidate for governor, were among those arrested. J Trash and debris are being removed from the long-abandoned Hotel Eddystone across from Little Caesars Arena. The work is needed before the Ilitch family’s Olympia Development of Michigan puts in promised, historically accurate windows. Olympia, which is spearheading the District Detroit development, said in August that windows were expected to be installed in September after it missed a deadline to redevelop the hotel. J Motorless City Bicycle Co. closed Sept. 28 in Eastern Market after a combination of tariff-related price jumps, seasonal struggles and new building ownership prompted owners of the bicycle shop to call it quits. The decision to roll out was made shortly after the building was purchased by Jordan Friedman, co-founder of Fortus Partners LLC, for $1.15 million in July. But Motorless co-owner Jeff Wood said he did not want to cast blame on any one factor.
GOVERNMENT NEWS J Attorney General Bill Schuette may “publicly support” Detroit Mayor Mike Duggan’s lawsuit challenging the constitutionality of Michigan’s no-fault auto insurance law and remove himself from defending the state’s insurance department in the high-stakes case, according to a court filing. The potential move comes as Schuette runs for governor against Gretchen Whitmer, who is backed by Duggan. J Detroit City Councilman Gabe Leland has been indicted on charges of allegedly soliciting and taking bribes of $15,000 in cash and services from a business owner. The charges connect the 35-year-old politician to Elisa Grubbs, who was charged last week with siphoning “thousands of dollars to a city official in a corruption scheme.”
OBITUARIES J Local developer and Detroit booster Walter Cohen died last Sunday at age 71. The Bloomfield Hills resident owned family-run Arco Construction Co. and left a mark on the region through dozens of unique projects dating back to the 1980s.
he biggest building in the state is going to be even bigger than previously expected. Billionaire mortgage mogul and real estate maven Dan Gilbert’s skyscraper slated for downtown Detroit may grow by more than 100 feet to 912 feet tall. While the final height has not yet been determined, Joe Guziewicz, vice president of construction for Gilbert’s Bedrock LLC, confirmed that it will be taller than the 800 feet that was previously announced as the company looks to get “the most flexibility for how we use it and how we program it.” “We may end up at 900,” Guziewicz said, adding that the city has been briefed on the plan. “This has been an ongoing struggle for us for the last eight months. We get one shot and we want to be sure we have the right components inside.” Those include residential, and possibly hotel and other uses. The previously revealed $909 million cost is almost certain to grow. The maximum height of 912 feet
was arrived at because that's the height the elevator cores as they are currently designed can support, Guziewicz said. It’s the third time the publicly revealed height of the J.L. Hudson’s department store site tower has changed since it was originally revealed in February 2017, when it was 734 feet tall, just 7 feet taller than the 727-foot Detroit Marriott at the Renaissance Center, with a cost of $775 million. Then in September 2017, another 66 feet and a sky deck were added to the building, bringing it to 800 feet in height and a $909 million price tag. Adding another 112 feet would make it one of the tallest buildings in the United States, according to the Council on Tall Buildings and Urban Habitat, which monitors skyscraper construction around the world. The tallest completed building in the U.S. is One World Trade Center in New York City, which is 1,776 feet, while the tallest building in the world is Burj Khalifa, which stands 2,722 feet in Dubai.
KIRK PINHO/CRAIN’S DETROIT BUSINESS
Women’s fashion retailer Madewell is among the retailers coming to the Shinola Hotel.
Four retailers coming to Shinola Hotel in Detroit F
our of the retailers — two local and two international — setting up shop in the new $25 million Shinola Hotel in downtown Detroit are now known. Women’s fashion retailer Madewell, fragrance maker Le Labo, Berkley-based juice maker Drought and Detroit-based clothing retailer Good Neighbor are coming to the first floor of the 130-room boutique hotel that’s expected to open in December. It’s the first public confirmation of at least a portion of the retail roster in the property, which sits at Woodward and Grand River avenues across from the former J.L. Hudson's department store site where Dan Gilbert is planning to build the tallest building in the state, potentially 912 feet tall. “With the retail component for the Shinola Hotel for that alley (behind the hotel), we really set out to create an authentic, one-of-a-kind experience,” said Jennifer Skiba, vice president of leasing at Gilbert’s Detroit-based Bedrock LLC real estate
development, management, ownership and leasing company. “We wanted to evoke a sense of discovery, so curiosity will lead you down this intimate and artistically inspired alley,” she said. Madewell’s downtown Detroit location, first reported by Crain’s in August, will take approximately 2,500 square feet and have Woodward frontage. Le Labo, which was founded in New York in 2006, is leasing about 1,000 square feet and will also have Woodward frontage. Estee Lauder Cos. purchased it in 2014. Drought, which has eight locations in the region, including two in the city, will move from its first-floor space in Gilbert’s Chrysler House high-rise at 719 Griswold St. Madewell and Le Labo will be open when the hotel opens in December. Drought’s Chrysler House location will remain open until its space in the hotel is ready; it’s not yet determined when Good Neighbor will open.
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$2 BILLION DOLLAR QUESTION
How does Michigan best coordinate physical and mental health? Every year, Crain’s Health Care Leadership Summit focuses on one key theme affecting today’s health care industry. This year’s event will examine how Michigan’s $2 billion in Medicaid mental health funding should flow, and how to manage health care for both body and mind across the spectrum of our health care system. This is of growing importance as the state of Michigan looks to coordinate how care for mental illness, substance abuse and developmental disabilities is managed and paid for.
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Moderator: Jeffrey Brown JLBrown Consulting Group
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Thomas Kendziorski The Arc of Oakland County, Inc.
Willie Brooks Detroit Wayne Mental Health Authority
Dominick Pallone MAHP
Dennis Mouras United Healthcare Community Plan of Michigan
Marjorie Mitchell Advocate Dan Russell Genesee Health System Kathleen Kovach Oakland Community Health Network
Isabel Jones Washington State Health Authority Dohn Hoyle The Arc Michigan
Isabel Jones Project Manager for Managed Care Integration Washington State Health Authority What can Michigan learn from other states that have integrated mental and physical health? Isabel Jones, project manager for managed care integration, shares lessons from the state of Washington, which plans to fully integrate its health systems by 2020. She’ll discuss why they’re doing it, how they’re doing it, and the results they’ve seen so far.
BREAKOUT SESSIONS DIGGING INTO THE PILOT PROGRAMS
Moderator: Robert Stein Michigan Assisted Living Association
Moderator: Jason Radmacher TBD Solutions LLC
Robert White Advocate John Williams Progressive Lifestyles Inc.
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FILLING THE CRACKS OF THE MENTAL HEALTH SYSTEM Moderator: Carmen McIntyre, M.D. Michigan Department of Corrections Elizabeth Bauer Advocate Warren Evans Wayne County Executive Mark Reinstein Mental Health Association of Michigan Sanford Vieder Beaumont Hospital, Farmington Hills
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