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

At UglyChristmasSweater.com, ugly’s in the eye of the beho-ho-holder Page 3

Women in Leadership: Olga Loizon Page 15

DECEMBER 10 - 16, 2018 | crainsdetroit.com

REDEVELOPMENT

BACK TO THE FUTURE IN CORKTOWN

Building architects have begun work on the revamp of Michigan Central Station in Corktown. LARRY PEPLIN FOR CRAIN’S

Ford’s Factory picks up steam as it works through the details of train station revamp By Chad Livengood clivengood@crain.com

and Annalise Frank afrank@crain.com

On one end of Corktown, Ford Motor Co.’s brightest minds are trying to map out the business plan and ma-

neuvering of computer-driven vehicles inside a factory building that was turning out women’s stockings 20 years before nylon was invented. At the other end of Detroit’s oldest neighborhood, Ford’s building engineers and architects are trying to fig-

giant leap into an enormous project to remake where its employees think, design, create and attempt to innovate the vehicles of the future in a Corktown campus that is four years away from becoming a full reality. SEE CORKTOWN, PAGE 33

Need to know

Ford’s autonomous vehicle team creating ‘Silicon Valley’ culture in Corktown 

 Automaker’s construction firms starting first phase of train station project

COURTS

INSIDE

Best managed nonprofits Co-winners Midnight Golf and Starfish share the spotlight. Pages 12-13 crainsdetroit.com

Vol. 34 No. 49 $5 a copy. $169 a year.

NEWSPAPER

ure out how to piece together crumbling plaster that was bound together using horse hair. This certainly isn’t Henry Ford’s automobile company anymore. In the matter of a year, the Dearborn-based automaker has taken a

Jay Alix bankrolls dream team to take on consulting giant McKinsey

By Dustin Walsh dwalsh@crain.com

and Sherri Welch swelch@crain.com

When corporate turnaround pioneer Jay Alix decided to pick an enormous fight with a global consulting giant, he turned to a hometown crew, led by former bankruptcy judge Steven Rhodes. In the multiyear legal battle, Alix has alleged McKinsey & Co. is skirting the U.S. Bankruptcy Code for an unfair advantage over competitors — like the one he founded in Southfield in 1981, AlixPartners LLP — by omit-

Alix

Rhodes

ting conflicts of interest. And he appears to be gaining ground against the $10 billion firm.

Last week, the Department of Justice recommended that a judge in U.S. Bankruptcy Court in Virginia reopen the Chapter 11 bankruptcy case of Alpha Natural Resources Inc. and force McKinsey, who served as its restructuring agent, to return $20 million in fees. The U.S. trustee assigned to the Alpha case by the justice department said McKinsey failed to disclose its conflicts of interest in the case and doing so “undermines public confidence in the bankruptcy process.” SEE ALIX, PAGE 32

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

MICHIGAN BRIEFS

INSIDE

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

Scaled-back wage, sick time laws await Snyder’s signature The Republican-led Michigan Legislature last week passed bills that would delay a minimum wage hike and scale back paid sick leave requirements, an unprecedented lame-duck strategy that was endorsed legally by the state’s conservative attorney general despite criticism that it is unconstitutional. The fast-tracked legislation, which drew protesters to the Capitol who chanted “shame” and “bought and paid for” outside the chambers, was pushed through on largely party-line 60-48 and 26-12 votes. Some changes were made at the request of Republican Gov. Rick Snyder, who stayed mum on whether he will sign the measures — though Senate Majority Leader Arlan Meekhof was confident, saying Snyder told him he would do so. The business community supports delaying the boost in the minimum wage to $12.05 until at least 2030 and limiting paid sick time requirements to employers with 50 or more workers. Opponents say the move is illegal and an insult to voters.

Democratic Rep. Darrin Camilleri of Wayne County’s Brownstown Township, who voted against the measures, said gutting the minimum wage hike “would not only hurt thousands of workers in Michigan but would also betray the trust of millions more by ignoring the will of the people.” But Republican Rep. Tommy Brann, a restaurant owner from Wyoming who supported the bills, said restoring the tip credit — servers get a lower minimum wage that is supplemented with tips — would “protect their quality of life. The free market works. We are paying cooks $13.50, $14 an hour ... and our servers are making more.”

Recreational marijuana legal; retail sales await regulations

Michigan cleared a threshold Thursday as the first state in the Midwest to allow marijuana for more than just medical purposes. In the Nov. 6 election, voters by a wide margin endorsed recreational use by adults who are at least 21. The move comes 10 years after voters approved marijuana to alleviate the effects of certain illnesses. Many supporters believe that decadelong experience, as well as similar legalization efforts in other states, led to victory at the ballot box.

CLASSIFIEDS

KEITH CRAIN

OPINION

OTHER VOICES

PEOPLE

RUMBLINGS

WEEK ON THE WEB

GOP-led Michigan Senate OKs bill to strip campaign-finance power

GETTY IMAGES/ISTOCKPHOTO

The new law creates a system of growing and selling marijuana.

Eleven states and the District of Columbia have legalized recreational marijuana. Of course, there are many caveats in Michigan and already some tension. However, the doors to pot shops can't open yet. The new law creates a system of growing and selling marijuana, with millions of dollars to be collected in taxes, but those shops still are months away and must involve state regulators. So people

who want marijuana now will need to grow it or obtain it by other, perhaps illegal, means. Michigan is just beginning to license medical-marijuana dispensaries. Depending on where people live, buying marijuana won’t be as easy as buying bread. Elected officials in some communities already have voted to ban pot businesses, long before rules are in place. A local veto is available under the law.

ALIGN YOUR BRAND WITH UNMATCHED CONTENT AND A POWER AUDIENCE Crain’s Detroit Business’ live events bring Southeast Michigan’s influential business and community leaders together in one room. Our event packages provide unique opportunities for you to extend your brand reach and showcase your expertise to this elite audience. With events ranging from large to mid-size audiences, from health care to real estate – we have an event that works for your brand AND budget.

VIEW OUR 2019 EVENTS CALENDAR BY VISITING crainsdetroit.com/crainsevents Ready to learn about our unique event sponsorship opportunities? Contact Lisa Rudy at lrudy@crain.com.

The Republican-led Michigan Senate voted Thursday to strip campaign finance oversight from the secretary of state and have a bipartisan commission handle the functions instead, less than a month before a Democrat leads the office for the first time in two dozen years. The main bill was sent to the GOPled House to be considered as early as next week, following a similar move to restrict the powers of incoming Democrats in neighboring Wisconsin. Outgoing Republican Gov. Rick Snyder has not indicated whether he supports the campaign finance legislation or other measures that opponents contend would curb top Democrats elected last month. The Senate also approved measures to implement a voter-approved constitutional amendment that allows same-day voter registration, over criticism that the legislation could conflict with the voters’ intent and should wait until after the frenetic lame-duck session.

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

SPORTS BUSINESS

Power Hour lifts spirits

Detroit Lions fans are increasingly entering Ford Field earlier before games to take advantage of reduced concessions prices on certain beer, cocktails, soda and hot dogs — including Bloody Marys. BILL SHEA/CRAIN’S DETROIT BUSINESS

Detroit Lions’ reduced concessions price strategy also gets fans inside stadium sooner By Bill Shea bshea@crain.com

The Detroit Lions’ pregame discounts on booze, soda and hot dogs are helping make the stands more full at kickoff. The team launched its Power Hour of reduced prices paired with pregame entertainment throughout the stadium in 2016, and this season it expanded the discount concessions program as a further enticement for fans to arrive sooner — and to try to make them happier, even if the results of the games do not.

Need to know JJTeam says fans are getting inside Ford Field sooner, report increased satisfaction JJConcessions sales have increased with cheaper prices JJReduced menu prices are paired with more pregame entertainment

Data provided by the Lions shows that the number of total attendees arriving within an hour of the stadium doors opening — that’s between 11 a.m. and noon for 1 p.m. games — im-

proved by 8.76 percent from 2016 through this past week. This season, nearly 29 percent of fans are inside the stadium by noon. That’s about 18,000 people, up from 12,300 four years ago. The Lions place great stock in getting fans inside sooner — and on improving their customer-service rankings. The stadium seats 64,500 fans, and the Lions have averaged more than 60,000 per game for years, with 65 percent entering the stadium through Gate A across from Comerica Park. “The goal was to get people in the building earlier. The Power Hour was

RETAIL

Special to Crain’s Detroit Business

Christmas doesn’t have to be sweet. It can be spicy and fresh and irreverent, as sales at UglyChristmasSweater.com prove. The Commerce Township-based online retailer sells a huge array of colorful and off-color holiday sweaters — a mix of risqué and memorable ones that say “Jingle my bells” or “Santa’s favorite ho” and some bearing licensed pop culture icons such as Star Wars’ Chewbacca, Pickle Rick and Will Farrell as Elf. There are licensed sweaters and sweatshirts featuring the Grinch (in several poses), scenes from “Home Alone” and “The Office” and there’s even a President Donald Trump sweater. There are also ugly Christmas socks, which appeal to fans and detractors alike, according to company president Fred Hajjar. Almost all of it is exclusive to the

By Jay Greene jgreene@crain.com

JJSales expected to surge 35 percent this

year

JJOakland County company designs 90 percent of what it sells JJU.S. holiday shoppers will spend an average of $1,007 this year

SEE SWEATERS, PAGE 32

SEE LIONS, PAGE 30

Orthopedic surgeon group blazes trail

Need to know

Oakland County company, which designs 90 percent of what it sells, said Hajjar. Sweaters run around $30-$70, with other apparel (socks, dog sweaters and the like) can be had for $10-$20. Like waistlines around the holidays, Ugly Christmas Sweater Inc. is growing, with sales expected to surge 35 percent this year, up from the 15 to 20 percent growth of recent years. That means $6.5 million to $7 million in sweaters, holiday pajamas and the like.

worldwide attention for deeply slashing food and beverage prices at Mercedes-Benz Stadium when it opened last year. Stadium food prices traditionally are a fan complaint because concessionaires and teams have a captive market and that allows them to set inflated prices compared to the outside world. The Falcons and others are instead cutting prices, accepting less in revenue in return for increased fan satisfaction results and positive media spin.

HEALTH CARE

Ugly holiday sweater sales are beautiful music to Commerce Township firm By Vickie Elmer

our solution,” said Kelly Kozole, the Lions’ senior vice president of business development. “It’s grown every year.” Kazole said 85 percent of the Thanksgiving Day game crowd of 65,684 was inside the stadium by kickoff. That’s not easy in an age of increased stadium security and electronic ticketing. There’s another bonus: Fans walking around earlier also are more likely to buy souvenirs. The discount-concessions strategy is a recent trend in sports, with pro football’s Atlanta Falcons garnering

UGLYCHRISTMASSWEATER.COMT

Star Wars’ Chewbacca is among the holiday sweaters offered by UglyChrismasSweater.com

Michigan Orthopaedic Surgeons PLLC, a newly formed 44-surgeon group based in Southfield, is aggressively moving to prove outpatient orthopedic surgery can be just as effective as traditional inpatient surgery for much lower costs. Formed in early 2017 by five smaller independent orthopedic specialty groups that primarily practice at Beaumont Hospital in Royal Oak and Troy, the single-specialty private academic medical group with 260 employees has nearly quadrupled the number of outpatient surgeries like hip and knee replacements it has done over the past year. Revenue also has grown 17 percent this year to $55 million from $47 million in 2017. As technology and support services for outpatient surgeries have improved, MOS has increased the number of outpatient surgeries from

Need to know JJNewly merged Southfield-based private orthopedic group quadrupled outpatient surgeries this year JJWorking with Beaumont Health on outpatient orthopedic surgery center strategy

700 in 2017 to an estimated 2,700 this year, numbers that are expected to grow even more as more surgeries move into lower-cost outpatient settings, said Dennis Viellieu, CEO of Michigan Orthopaedic Surgeons. Paul Fortin, M.D., president of Michigan Orthopaedic Surgeons and a foot and ankle specialist, said Michigan payers, insurers and hospitals are behind in the movement to outpatient surgery, and MOS is trying to prepare for an explosion he believes will occur in Southeast Michigan in the coming years. SEE SURGEONS, PAGE 31

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

THERE’S A BETTER WAY TO TRAVEL. Let us show you the benefits!

J. LINDSEY PHOTOGRAPHY

@CRAINSDETROIT

Allandra Bulger, executive director, Co.act Detroit, in the nonprofit support and innovation center’s new space.

First-of-its kind nonprofit support center gets into gear By Sherri Welch swelch@crain.com

A F e e - O n l y We a l t h M a n a g e m e n t G r o u p

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.**

We Uphold a Fiduciary Standard 101 West Big Beaver Road 14th Floor Troy, MI 48084 (248) 687-1258 or (888) 777-0126

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.

A first-of-its-kind nonprofit support and innovation center taking shape in Detroit plans to launch a handful of pilot programs in January. Among the programs will be oneon-one consultation with experts in areas such as data aggregation and use, legal issues and accounting; group educational sessions focused on similar topics and networking events. The new Co.act Detroit center — aptly located in Detroit’s New Center neighborhood — also will be accepting limited requests for meeting space for nonprofits. Information will be posted at coactdetroit.org once the website is launched early in January. It plans to give nonprofits and the public a first glimpse of its new space this week, with an open house Friday morning for those who register in advance. The pilot programs will launch as Co.act and its partner organizations develop systems to help nonprofits assess their operational strengths and weaknesses and then connect them with the resources they need. As part of that, a collaborative of nonprofit groups is holding feedback sessions with local nonprofits to identify the barriers they face in tapping capacity-building services, Co.act Executive Director Allandra Bulger said. Leading those conversations are the Michigan Nonprofit Association, University of Michigan Technical Assistance Center, Michigan Community Resources and Nonprofit Enterprise at Work. Findings from those conversations will dictate the types of programming offered at Co.act and inform the development of a referral system to coordinate access to services for nonprofits, Bulger said. At the same time, MNA is helping shape those services with a $315,000 grant from the Ralph C. Wilson Jr. Foundation and assistance from oth-

Need to know JJCo.act nonprofit support and innovation center in Detroit will launch pilot programs in January JJWill include one-on-one with experts, group education sessions and networking events JJNonprofits and public can get first glimpse of new center at Friday morning open house

er nonprofits. And other groups, like Building the Engine of Community Development in Detroit, an initiative of Community Development Advocates of Detroit, are also helping to develop new programs. “We are working collaboratively ... to identify how organizations can get the support they need more quickly and effectively,” Bulger said. Co.act will be a place nonprofits can come together, work together and learn together, she said. Nonprofits will be able to receive the services that meet them where they are. “The underlying goal is to create a more resilient and connected nonprofit community in the region,” Bulger said. Co.act is operating as a program of Techtown which is overseeing the center’s operations with a three-year, $4.75 million grant received from the Ralph C. Wilson Jr. Foundation one year ago. Techtown is providing the new center with human resources, communications and facility maintenance support. “That allows us to leverage an organization (Techtown’s) long standing and has established infrastructure to support what is essentially a startup,” Bulger said. Co.act is also borrowing ideas that work from Techtown. For example, its “Open Office Hours” one-on-one consultations with experts will be modeled after Techtown’s “Ask the Experts” program for entrepreneurs. Providers like Data Driven Detroit will be available during set hours each week to consult with nonprofits

on aggregating and using data. Or, Michigan Community Resources might be on hand to provide legal consultation, Bulger said. Experts in other areas like accounting also will be invited. “We definitely know there are some things Techtown provides for the entrepreneurial community that can inform what we provide for nonprofits,” Bulger said. To begin building its own infrastructure, Co.act plans to hire four new employees in January and February: a director of programs, program manager, community ambassador to manage the front desk and an executive assistant. Construction of Co.act’s 6,500-square-foot space is nearly complete. Located on the first floor of the Wilson foundation’s building at 6568 Woodward Ave. near East Grand River Avenue, it includes spaces ranging from cozy, informal seating areas to more formal spaces, with offices for Co.act and Wilson foundation staff around parts of its perimeter. The new center includes four enclosed conference rooms, a flexible seating area for 60 with two screens, a boardroom table that seats about 20, and small, open meeting spaces. The kitchen is dubbed the “Soda Fountain” as a nod to the former Sanders “Pavilion of Sweets” store that once occupied the northern half of the center’s space. The conference rooms will also celebrate the store’s sweet past, with names including the “Bumpy Cake Room,” “Cream Puff Room,” “Sundae Room,” “Peanut Butter Block Room” and “The Pavilion.” “By virtue of people being able to connect and learn together, we know that we can breed an environment for innovation,” Bulger said. “There are a lot of great things happening, but they are often siloed. Being able to learn from one another brings opportunities.” Sherri Welch: (313) 446-1694 Twitter: @SherriWelch

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

Gallagher-Kaiser plans $9.27M investment, 300 new jobs in Detroit expansion By Annalise Frank afrank@crain.com

A Troy-based paint finishing system supplier plans to invest $9.27 million to grow its operations in Detroit. Under the plan, Gallagher-Kaiser Corp. would buy 10 acres of land and an existing building to expand its footprint in the city. It would also add 300 jobs in Detroit and Troy and invest in new technology. The property and 150,000-squarefoot building are next to Gallagher-Kaiser’s existing 100,000-square-foot facility on Mt. Elliott Street, north of Hamtramck. “This decision made sense for many reasons. Logistically, it was a no-brainer; it’s a seamless expansion. Our company has grown tremendously in recent years and this investment represents our goal to remain the best,” CEO Bob Kaiser said in a statement. “This is where we came from. We’ve been here since day one; experiencing all of the ups and the downs of the automotive industry. I’m so proud we can be a part of the city’s growth; it’s an exciting time. Detroit is home, and there is no place else we’d rather be.” The larger building would be renovated to house manufacturing operations. A potential purchase price was not disclosed. The Michigan Strategic Fund approved in late November a $3.2 million grant to support the supplier’s anticipated investment. A property tax reduction is also expected through the city of Detroit. The supplier would keep its headquarters in Troy, where it employs 300 between Gallagher-Kaiser and subsidiary Universal Piping Industries, it said in a statement. It employed 53 in Detroit as of last Monday. Currently, Gallagher-Kaiser subcontracts some manufacturing work outside of Michigan to meet customer demand. The expansion would allow it to increase in-state production, CFO Ken Krause said in an emailed statement. Gallagher-Kaiser was founded in

MAN AND WOMAN OF THE YEAR

Need to know JJTroy-based paint finishing system supplier aims to create 300 jobs

The Man & Woman of the Year campaign engages a select group of individuals to participate in a fundraising campaign in support of a greater purpose: curing cancer. Candidates run in honor or memory of loved ones who serve as sources of inspiration to others, including two local children who have survived blood cancer. From corporate presidents to ultra-marathoners, the diverse candidates always have two qualities in common; humanity and zeal. Because of their efforts and commitments, LLS is able to advance breakthrough cancer treatments and therapies. Beating Cancer Is In Our Blood.

JJState approves $3.2 million grant for Gallagher-Kaiser Corp. JJExpansion would allow company to subcontract less work out of state

The property and building are next to Gallagher-Kaiser’s existing manufacturing facility on Mt. Elliott Street. 1952 in Detroit. It serves the automotive industry — customers include Detroit-based General Motors Co. — and aviation, hospitality, government and aerospace. It also opened an office this year in Monterrey, Mexico and its subsidiary, Universal Piping Industries, has a Kentucky fabrication facility.

We congratulate our class of 2018 Man & Woman of the Year candidates!

Do you have what it takes? To participate as a candidate, nominate a candidate or join the Leadership Team for the 2019 campaign, please contact: Stephanie Sawicki at Stephanie.sawicki@lls.org or 248 581.3907

For more information visit MWOY.org

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

Labor and Employment Experience

In Your Corner.

Crain’s seeks biggest deals of 2018 Did your company make an acquisition or sale in 2018? Were you a law firm or financial adviser that supported such a deal? Crain’s Detroit Business is seeking details on Michigan’s largest merger and acquisition deals. The M&A deals must have a deal value over $10 million and have been announced or closed in the 2018 calendar year. Either the acquiring or selling company must be located in Michigan. Crain’s annual Biggest Deals list will run online and in the print edition on Feb. 25. To submit information on your deal, please go crainsdetroit.com/ nominate and click on the Crain’s Biggest Deals logo.

Contact Bethany Sweeny at bsweeny@varnumlaw.com

Defends claims of harassment, retaliation and discrimination, as well as FMLA and whistleblower claims Counsels employers on hiring, discipline and performance matters, wage and hour issues, employee leaves and accommodation requests Represents employers before the EEOC and various state agencies

Legal Experience In Your Corner.

Ann Arbor

Tier 1 Metropolitan Ranking in Labor Law – Management and Employment Law – Management

Detroit

Grand Haven

Grand Rapids

Hastings

Kalamazoo

www.varnumlaw.com |

Lansing

Novi

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

OPINION COMMENTARY

EDITORIAL

MDOT’s innovation, leadership leads Alix’s battle suggests some fixes to mobility accomplishments

ay Alix has a point. The guru of the turnaround industry has for several years waged a battle against the giant consulting firm McKinsey, a competitor of his former firm in bankruptcy work. The complaint? As Dustin Walsh and Sherri Welch chronicle on Page 1, that McKinsey failed to disclose to its clients that various arms of its business were working on both sides of bankruptcy cases — with some of its people advising the bankrupt company, and others advising its creditors. Just like law firms, it’s important for consulting firms to avoid the appearance of conflicts of interest and to be as transparent as possible when such conflicts arise. McKinsey says it does that to the satisfaction of the court and its clients, just not to the satisfaction of Jay Alix. It shouldn’t be an option. And there’s a simple solution: The rule-making body for federal courts should clarify the current rule that requires only that firms consulting on bankruptcy work be “disinterested.” It should further clarify that rule so that conflicts like McKinsey’s must be plainly disclosed. McKinsey has said that such far-reaching disclosures are difficult for a firm of its size and that firewalls are in place. Yet big law firms and investment banks maintain strong systems to avoid just these kinds of conflicts. Somehow they manage. Of course, there’s the obvious question of motivation. Alix’s former firm, AlixPartners, would certainly benefit from favorable results in Alix’s court battles. (He no longer owns the company but does maintain a minority stake. For his part, he says the firm has nothing to do with the lawsuits.) One of the problems is that turnaround consultancy is a smaller pond than many businesses that need to avoid conflicts. That makes transparency even more important. That would help keep clients informed, and create a common set of rules for tough competitors like AlixPartners and McKinsey, leveling the playing field. It may be a personal fight, but it could create positive change.

ith Kirk Steudle now retired after a historic tenure as director of the Michigan Department of Transportation, it seems a good time to reflect on our state’s mobility accomplishments under his and Gov. Rick Snyder’s leadership. I know and share your frustration with the condition of our state’s roads. After eight years on the Michigan Transportation Commission, the past three as chairman, I can tell you if not for MDOT’s focus on innovation and doing more with less, things would be much worse. At 13 years, Steudle is the longest-serving MDOT director since the position was changed from an elected post to a gubernatorial appointment in 1964. During that period, Michigan, like many states, has been starved for transportation investment. The reasons are many: Lawmakers not willing to make difficult decisions and taking pledges to not raise taxes, Michigan’s deep and decade-long recession, and a lack of commitment to infrastructure at the national level. Facing that reality, Steudle challenged his team to rethink everything, inspiring ideas to stretch dollars and limit construction-related travel delays. Tops among the accomplishments is the Gordie Howe International Bridge linking Detroit and Windsor, Ontario, America’s busiest commercial land crossing. Construction commenced last month on this decades-in-the-making project to support trade between the United States and Canada, the world’s largest trading partnership, moving $538 billion in freight each year. Some key Southeast Michigan accomplishments supported by Snyder and Steudle:

The fighting has already begun

f you happen to be a Republican, you might want to skip this. Even before the new governor was inaugurated next month, the Republicans in the Michigan Legislature are attempting to do all sorts of nasty tricks to change the powers and responsibilities of our executive branch of state government. I understand that the Republicans in Michigan are unhappy that they lost some big races in November, particularly the governor’s, attorney general’s and secretary of state’s offices. But the last time I looked, Republicans have retained both the Senate and the House. It would appear that is not enough. So in these waning, lame-duck days of the term, the Republicans have decided to try and push through a few bills to limit the powers of those incoming elected officials, who are Democrats. At best, I can only hope that if ques-

KEITH CRAIN Editor-in-chief

tioned by anyone on their justifications, they have their fingers crossed. What they are doing smacks of cheap politics, and if the shoe was on the other foot, I have no doubt that they would be yelling bloody murder. It certainly has not taken much time for the opposition party to start acting like the opposition party. Somehow, it would be nice for our elected officials to realize that they were elected to serve the public, and not to consider their party their first

priority. In this case, the public had already spoken. There seems to be more interest today in making mischief than serving the folks who cast the votes. It is true for both parties, and would seem to be a great way to lose the next election. I am sure a lot of people will not be happy with the policies of our newly elected governor. But the other party still controls both houses, so it would seem there will be what we used to call a balance of power — which used to force people to negotiate, which could bring real results. Today, I fear they will call it stalemate, and they will accomplish nothing. “Fix the roads” will be a great test for the citizens of Michigan to see what sort of government we will have for the next four years. Let us hope they learn to work together. Early indications are not hopeful.

OTHER VOICES Todd Wyett

Under Gov. Rick Snyder and Kirk Steudle, MDOT has improved transportation for all modes, supporting economic growth and making the most of limited funds. J A first-of-its-kind in Michigan, public private partnership forged in 2015 has restored freeway lights in Metro Detroit. Funding shortages and copper theft had left fewer than 70 percent of lights working. Thanks to this unique initiative, contractors installed more than 13,000 LED lighting fixtures in the tri-county area with more than 95 percent now operating. J Thanks to robust public involvement the past few years, MDOT and the city of Detroit are moving closer to a plan to replace the antiquated, recessed I-375 freeway with an alternative that allows for connectivity between neighborhoods and downtown, better pedestrian, cycling access, green space and development opportunities. J MDOT maximized limited funding

to focus on innovation and efficiency. As a result, MDOT invested in its first Flex Route on US-23 near Ann Arbor. That project, a model to be emulated on other freeways, uses technology to turn a shoulder into a travel lane when needed. J I-75 modernization in Oakland County, engaging the private sector to not only build, but finance and maintain a major freeway for 30 years. Another first-of-its-kind for Michigan, this project saves the state money long term by transferring risk to the contractors and also saves travelers the inconvenience of extra years of construction under a traditional contracting schedule. This state put the world on wheels and will nurture mobility pioneers exploring the next frontier. Under the leadership of Snyder and Steudle, MDOT has improved transportation for all modes — adding higher-speed passenger rail service, the state’s first Bus Rapid Transit lines and myriad bicycle lanes — supporting economic growth and making the most of limited funds. MDOT leaders are always looking to the future. Investments in connected vehicle infrastructure and testing sites such as Mcity at the University of Michigan and the American Center for Mobility at Willow Run, have positioned Michigan at the center of new mobility. As a new administration prepares to tackle the challenge of funding our infrastructure, I want to assure you that the Michigan Transportation Commission and MDOT will be fully engaged in the process. Todd Wyett is chairman of the Michigan State Transportation Commission.

LETTERS

Community knowledge breeds credibility

hile I appreciate and mostly concur with the sentiments expressed by Gary Dembs, I must offer one other key, but often overlooked, area that must be considered by current and future board members — community knowledge and credibility. Yes, the region, led by the city of Detroit, continues to evolve at an astounding pace, however, some things still remain constant — you should not make decisions about situations that you do not understand or have not experienced. The success of my various leadership roles over the last 20 years on six boards (five nonprofit and one for-profit) has shared one common theme — the community knew we cared about them and the mission of the work being done. To

be a true champion of the community, your job title and transferable work skills should never be enough. Effective board members understand and respect what board service truly means — using your gifts to improve the lives of others. As the nonprofit leadership transition continues to manifest, we are all well served if the best and the brightest in our region are also required to be the most compassionate and thoughtful. Teddy Roosevelt said it best, “People don’t care how much you know, until they know how much you care.” Leslie Andrews, CEO Leslie Andrews Consulting

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.

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

Bridging the ‘Detroit Divide’ “The new Detroit is changing the minds of people around the world!” “I am so proud of ‘The D’ that the vision came to fruition.” “Was downtown ... and it certainly is NOT the Detroit many people (imagine) ... Look(ed) awesome, and tons of people having a great & SAFE time.” As part of its holiday tradition, Detroit recently celebrated its tree-lighting. The sights and sounds were simply spectacular and, as evidenced by these glowing comments on social media, the city looked great and is certainly on the rebound. Or is it? Clearly, the momentum continues downtown, and people are enjoying the energy that area and other parts of the city have to offer. Between motorized bikes, new stadiums, restaurants, rehabbed and new buildings, an influx of people and jobs and investment, one can feel the renewed vigor, excitement and changing attitudes. However, let’s be careful not to get ahead of ourselves. And let’s not lull our collective psyches into thinking that “new Detroit” vision is near fruition. The “Detroit Divide” continues. According to a recent Moody’s Investor Service analysis, “Detroit’s (Ba3 stable) downtown is transforming amid a hub of large-scale developments, population growth and surging employment.” The summary continues, “However, this momentum only encompasses seven of Detroit’s 143 square miles and 6 percent of the city’s population. Strengthening the city’s property tax base beyond the city center would better position it to afford its already high debt and pension burdens.” This analysis reinforces my observations based on recent visits with businesses and residents in parts of the city. Albeit a small sample size, I, along with business associates, recently had the opportunity to visit and discuss neighborhood challenges with Detroit’s business owners and residents. And what we found is a mixed bag. Clearly, there’s momentum, but there’s still lots of work to be done across the entire city. What is the “Detroit Divide”? It’s a perceptual gap that exists between where people live and work relative to the excitement percolating downtown and other parts of the Motor City. Not surprisingly, key neighborhood issues fall in the following categories: J Crime J Poverty J Jobs/job training J Education And while those interviewed generally agreed economic development and investment are moving in a positive direction, the overall key is expanding opportunities into the neighborhoods. The prevailing thought is there’s an investment and development emergence in certain neighborhoods. The general belief is that development across the city is slow and needs to expand into Detroit’s fragile residential areas. And while there are positive vibes regarding Corktown and Midtown development, for example, a simple

OTHER VOICES Mark S. Lee

question was asked: “When will it hit my area?” When asked what they would like to see, residents indicated the following:

J Jobs/training investment: Offer increased number of job fairs, recruiting and higher-paying jobs where they live and work. J Retailers: Attract service-related retailers and businesses. J Corridor revitalization: Address commercial centers and corridor blight. J Business expansion: Make neighborhoods regional centers for downtown-based businesses. J Investment: Invest in neighborhood events, and not necessarily just big-name events, such as the new PGA tournament set for 2019, but grassroots efforts focused on provid-

Clearly, there’s momentum, but there’s still lots of work to be done across the entire city. ing training and entertainment options. J Business sponsors: Have businesses sponsor specific neighborhoods for job training and financial literacy efforts, for example. J Tech investment: Invest in certain

areas to have them become tech centers supporting business priorities. There is recognition that Detroit is moving in the right direction, but while the investment and economic development gap remains unbalanced, in the minds of the residents, there will always be the “Detroit Divide.” Now is the time to continue to expand these efforts across the entire city so all parts of Detroit can benefit. Mark S. Lee, president and CEO, The Lee Group, is a blogger and hosts “Small Talk with Mark S. Lee” Sundays via radio.com and 910 AM.

Protect and Grow Your Assets: Business and Personal Learn how we can help protect and maximize your value by contacting Reuben Rashty, Managing Director, Fifth Third Private Bank for Michigan,at 313-230-9026.

Your Fifth Third team will guide you through a tailored business and personal planning process, and introduce additional resources as needed to fit your unique goals and circumstances. • Wealth planning*

• Banking

• Business continuity/ succession planning

• Insurance • Estate and wealth transfer

• Investment management

Our Private Bank Birmingham location is now open: 300 Park Street, Suite 300 Birmingham, MI 48009

*Fifth Third does not provide tax, legal, or accounting advice. Please contact your tax advisor, accountant, or attorney for advice pertinent to your personal situation. Fifth Third Private Bank is a division of Fifth Third Bank offering banking, investment, and insurance products and services. Fifth Third Bancorp 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. Registration does not imply a certain level of skill or training. Investments, Investment Services, and Insurance: Are Not FDIC Insured | Offer No Bank Guarantee | May Lose Value | Are Not Insured By Any Federal Government Agency | Are Not A Deposit Insurance products made available through Fifth Third Insurance Agency, Inc. Deposit and Credit products offered by Fifth Third Bank, Member FDIC. CS4675

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

FOCUS

CRAIN’S MICHIGAN BUSINESS: LUDINGTON/MANISTEE

SPIRITS OF MANISTEE

A busy summer night at Iron Fish. JESSE DEN HERDER

Iron Fish Distillery creates a drinking destination on a back-roads farm Tom Henderson thenderson@crain.com

It was a vacation to remember. A trip to Scotland, intended as a visit to some of the world’s best distilleries to sample their scotch whiskeys, turned into a life-changing event, both for the two men who took trip and the two spouses who remained behind. The result? The award-winning Iron Fish Distillery in Springdale Township, north of Manistee, a fast-growing tourist destination despite being off the beaten track on a dirt road called Dzuibanek, in the middle of hundreds acres of farmland. After having been open less than a year and a half, Iron Fish’s woodland gin, made with winter wheat, was ranked in the January-February 2018 issue of Cigar and Spirits Magazine, a bible of the distillery industry, as the world’s fourth best gin. It all started in May 2014. Richard Anderson, a lover of fine scotch, was turning 60 and his wife, Sarah, bought him a trip to Scotland. David Wallace, a good friend and fellow lover of scotch, went with him. Their destination was the island of Islay, the southernmost of the Inner Hebrides islands, off the northwest coast of the mainland. Sparsely populated with people — 3,228 at the last census — it is well-populated by and renowned for its many distilleries and the peaty single malts they produce. “On our second or third day, we’re standing in front of these beautiful Scottish stills and I said to Richard, joking, ‘We could do this in Michigan,’” said Wallace. “The more we talked about it, the more I liked it, but

Founders of Iron Fish Distillery: Heidi Bolger (left), David Wallace, Richard Anderson and Sarah Anderson. JESSE DEN HERDER

Need to know  Iron Fish is Michigan's only farm-toglass distillery  Founded in 2016, the distillery grows much of its own grain  Ramping up production to 5,000 cases next year

as soon as we got on the plane back home, I forgot all about it.” But he didn’t forget it for long. That fall, Wallace went to a conference in Chicago for those considering opening a distillery. Attendees could find out about permitting and marketing and the equipment and supplies you’d need and how to order them. On the spur of the moment, Wallace wrote a check equivalent to

10,000 euros and mailed it off to a company in Germany that makes stills. (There was a much shorter waiting list for a German still than an American still.) “The next day, I called Richard and said ‘We’re really going to do this.’” Wallace was a veterinarian in Saginaw, and his wife, Heidi Bolger, was an accountant with the Saginaw-based accounting and consulting firm Rehmann. They both continue to work part time. At Iron Fish, as managing member of the LLC, Wallace helps head distiller Dan Krolczyk create interesting spirit blends and is in charge of facility needs, which often has him with hammer and saw and wearing a coat of sawdust. He is currently building

wooden racks to store barrels while their whiskeys age. Heidi calls herself “chief reality officer, keeping our financial and human-capital house in order.” From 1987-1997, Richard Anderson was CEO of Northern Initiatives, a nonprofit partnership with Northern Michigan University in Marquette that funds early-stage businesses. Sarah was a manager at Northern Initiatives, and they went on to own a consulting company, helping foundations with entrepreneurial education and small-enterprise development. She had also been director of the Mackinac Island chamber of commerce in the 1980s. The Andersons work full time at Iron Fish. He is COO, she oversees the tasting room and events — the Iron Fish hosts weddings and birthday and holiday parties — and creates their specialty craft cocktails. Wallace and Bolger had long owned a place on the nearby Betsie River and in 2011 bought a former 120-acre farm that had been owned and managed by the Chamberlain family from the 1880s into the 1990s, when the last ones to farm it got too old to run it. The land had sat fallow since. Krolczyk joined the enterprise by happenstance. A master brewer and distiller by trade, he is also involved with a nearby family farm. He heard about Iron Fish and stopped by to see if they were interested in buying any grains. He also brought a baby-food jar filled with a rye whiskey he had made and thought they might be interested in sampling. Wallace took a sip and promptly offered him a job. “I said, ‘What are you

doing next year?’” The distillery takes its name from another name for the steelhead trout that anglers flock to the Betsie to catch every year when they swim upstream from Lake Michigan to spawn. The four of them briefly thought of opening their distillery in Frankfort, then decided to take a chance on the more remote but also handier location of the farm. The plan was to grow much of their own grains, what Anderson describes as “a field-to-glass operation.” It is the only on-the-farm distillery in the state in the rapidly growing niche of craft distilleries, and one of just a handful in the U.S.

A destination The Alliance for Economic Success, a nonprofit in Manistee, helped connect the Iron Fish founders to such resources as the Michigan Department of Agriculture, the Michigan State University Product Center and the Michigan Economic Development Corp., which helped coordinate a loan with the U.S. Small Business Administration. The Alliance also helped them get the land rezoned by Springdale Township to allow the distillery to function. They could grow plenty of grain on the farm, but would enough people be willing to Mapquest the drive there? “That first year in business, 40,000 customers came down that road,” said Wallace, sitting at a table inside the tasting room. The second year that rose to about 100,000. SEE SPIRITS, PAGE 10

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

The House of Flavors in Ludington. TODDANDBRADREED.COM

Flavors that run in the family By Tom Henderson thenderson@crain.com

In 1962, after graduating from Michigan State University with a degree in dairy technology, Bob Neal Jr. returned to Ludington to join the family business as manager of a small ice cream manufacturing facility with three employees. That business had grown out of a small dairy farm his father, Bob Sr., bought in 1948. The dairy farm had a small ice cream parlor in downtown Ludington called Park Dairy. Two years later, the business got what was then a high-tech upgrade when Neal bought a machine that could make three flavors of ice cream at once. It was the beginning, though Neal had no idea then, of what would become a major employer in Ludington and a company that would provide private-label ice cream to more than 60 retailers in the U.S. and Europe. Neal can’t disclose his customers’ names, but if you’re shopping at a major food retailer, there’s a good chance House of Flavors makes the store’s inhouse brand of ice cream. In addition to the private label brands, House of Flavors sells its own line of ice cream, marketed as Ashby’s Sterling, in 16 states. The company employs 199 at its downtown Ludington manufacturing facility, where it runs three shifts six days a week. “When I came back to run the plant, we were making 15,000 gallons a year. This year, we are budgeted to make 28 million gallons,” said Neal, who at 80 is still the company chairman, though he sold off a majority interest in the plant in 1999. “That machine allowed us to create the House of Flavors,” Neal said. Before it became a maker of private-label brands, the company became its own famous brand in small towns around Michigan. For $500, the Neals would deliver a House of Flavors sign and some equipment to independent mom-and-pop ice cream stands and parlors. “By the early 1970s, we had 100 stores in all the small towns in Michigan,” he said. By the 1980s, the small independent ice cream parlors no longer made economic sense. “They could do maybe $20,000 a year and that was no longer enough to support a business,” he said. One by one they shut down.

Barry and Bob Neal of House of Flavors in Ludington.

When Bob Neal sold off his minority industry in the plant, he kept the House of Flavors restaurant next door. The restaurant serves ice cream, of course, but also breakfast, burgers, hot dogs, french fries, salads, soups and full dinners, including roasted turkey. There is a second such restaurant in Manistee. In 2015, Neal sold the two to one of his sons, Barry. They operate under the House of Flavors name but are separate legal operations from the manufacturing plant. A third House of Flavors store in Pentwater is owned independently of the Neals.

Back to the family business Barry Neal always figured sooner or later he’d rejoin the family business he’d worked at as a kid. A graduate of Hope College, Neal began his career in marketing, including nine years as the advertising director at the Holland Sentinel newspaper before returning to the family business in 2007. “I grew up in the ice cream business. It’s part of who I am. But family businesses are hard, and I needed a break,” he said. It has always been a family business. His sister, Sarah Holmes, is vice president of finance at the manufacturing plant. Barry’s son-in-law, Mike Cota, is a manager of the Ludington restaurant, and Mike’s wife, Madison, waits tables

on the weekends. The Manistee restaurant had been in the Neal family but Bob Sr. sold it years ago to a Manistee resident. The Little River Band of Indians took over the business briefly in 2007 but shut it down after nine months of heavy losses. Bob Neal then bought it back and in June 2008, Barry reopened it. “We did well that summer. Dad said, ‘It looks like you’re serious.’ And the rest is history,” said Barry. “We had our 70th anniversary this year and my goal is to get to the 100th anniversary and then get the hell out of here,” he jokes. “I’ll be 87, then.” Neal said he employs 45-50 at the Ludington restaurant in the off-season and about 100 in the summer. “It’s crazy in the summer. It’s nothing in the summer to have a line out the door at 9 in the morning until 10 at night,” he said. “It’s a big adjustment from that chaos in the off-season. We get 2,000 customers a day in the summer, and that’s in a city with a population of 8,000.” The restaurant, which seats 135, typically has 36-38 flavors on offer, including some unique options like “Michigan Pothole,” made of dark chocolate with big chunks of chocolate reminiscent of crumbling asphalt. Barry and his dad are big promoters of Ludington. In 1981, Bob and a running buddy named Scott Rose created the Ludington Lakestride half-marathon. It quickly became a must-do race for state runners, with a quirky, tough and memorable course. In 2016, Barry decided on a promotion of his own: to have townspeople set the Guinness world record for the longest ice cream sundae. About 1,500 volunteers filled a half-mile of rain gutters with ice cream and toppings, then ate it. Next year, Neal hopes to get 1,500 or more to break the record for the largest dessert party, which will feature — what else? — ice cream. All the record attempts are timed to the Lakestride runs, which are always the second Saturday in June. Neal wants to give the runners a reason to hang around for the day. Off-season, to reward locals who often have a hard time getting into the restaurant in the summer, or who help him on his Guinness efforts, Neal offers free ice cream with any meal. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

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

SPECIAL REPORT: LUDINGTON/MANISTEE

Family jam business bears fruit

By Tom Henderson

try. She started out in a nonprofit community kitchen in the western Michigan town of Hart called the Starting Block, an incubator facility that helps would-be entrepreneurs work on their recipes and their business plans, offering fully equipped, licensed and inspected food processing kitchens at reasonable rentals. The Starting Block also offers advice on production techniques, recipe batching, packaging and labeling. “They had two kettles at the kitchen, so I could make a double batch of jam and then bring it back to Manistee. I was renting some space in downtown Manistee and I’d label it,” said.

thenderson@crain.com

Wee Bee Jammin’, a family-run business in Bear Lake, just north of Manistee, had humble beginnings. Simone Scarpace, the company’s founder and self-proclaimed Queen Bee, used to carry a small Eddie Bauer folding chair and head into in the woods of northern Michigan with her kids during various fruit seasons, unfold it, sit down and commence to slowly and peacefully pick off tiny wild strawberries or strip raspberry canes or blackberry canes or wild blueberry bushes of their fruit. And then she’d make jams and pass them out to friends and family, who of course told her they were delicious. No, seriously, this is delicious, they’d say. Really delicious. You oughta go into business. “We’d pick berries in the woods. I’d make jam and give it away as gifts. It was my husband who really encouraged me to go into business,” she said.

Steady growth

Need to know  Wee Bee Jammin’ will sell more than 30,000 jars this year  Retail store sells jam as well as honey, coffee and Michigan-made arts, gifts 

Future plans include a microbrewery

Her husband, Ken, an entrepreneur himself, owns St. Clair-based Major Polymers Distribution Inc. The two were high school sweethearts at Livonia Franklin High School. In 1980, his senior year as an outfielder at Western Michigan University, he was named to the Rawlings Sporting Goods Co.’s third team All-American baseball team. She was a stay-at-home mom while he pursued a baseball career, playing four years in the minors, reaching as high as Double A ball with the Cincinnati Reds farm team in Waterbury, Conn., before retiring from the game. He is active with the polymers business, but also spends time working at Wee Bee Jammin’, on a recent day busy pasting labels to jars. In 2000, the Scarpaces bought a condominium in Manistee and started spending as much time outdoors as they could. That’s when the berry picking got serious. After years of making jams and getting better at it, in 2008, Simone finally took her husband’s advice and decided to give the jam business a

SPIRITS FROM PAGE 8

They had a groundbreaking ceremony in September 2015 and opened the 4,900-square-foot distillery over Labor Day weekend in 2016, having harvested 20,000 pounds of wheat and rye that August from the 80 acres they had planted to use in a variety of spirits. They purchased some grain from other area farmers and continue to do so, including quite a bit of corn from a local organic farmer. They also are allowed to trim long-needle pine branches, free of charge, from concolor firs grown at the Antioch Tree Farm in nearby Mesick. It is a tree usually found in the

Simone and Ken Scarpace of Wee Bee Jammin.

A store shelf at Wee Bee Jammin.

Western U.S. and rare in Michigan. Used in gin, the pine needles imbue the spirit with a strong smell of oranges. This past May, Iron Fish was named as one of Michigan’s 50 Companies to Watch at the annual Michigan Celebrates Small Business awards ceremony in Lansing, sponsored by the Edward Lowe Foundation and the MEDC. More than 600 companies were nominated. A month earlier, the distillery had hit a milestone of sorts when Imperial Beverage of Kalamazoo began wholesale distribution of its spirits around the state. In August, Iron Fish had another grand opening, of a stand-alone 4,500-square-foot building known as

a rickhouse, where barrels of spirits will age in a climate-controlled environment. That was part of a $500,000 expansion that will ramp up production from about 2,500 cases of spirits this year to about 5,000 next year. There are 12 bottles to a case. Last summer, the distillery employed about 30. It employs about 20 off-season. Iron Fish is still barrel-aging its whiskeys. White spirits can be sold immediately. Rum is barreled for a year. Dark spirits like whiskey generally take three to five years, said Wallace. Iron Fish also makes its own barrel-aged maple syrup and honey. The syrup and honey are mixed in cocktails and also sold in jars lining the shelves of the tasting room.

From a modest start that saw Scarpace make 1,500 jars her first year, Wee Bee Jammin’ will produce more than 30,000 jars this year and has a retail outlet so popular the state put up two big blue highway signs on M-31 — the highway that links Bear Lake, Manistee and Ludington and runs past her business — directing drivers to her store. Scarpace wholesales her product all over the state to about 150 retailers and restaurants, handling distribution herself. Retailers include EZ Marts, Whole Foods, Kroger and Meijer. Stormcloud Brewing Co. in Frankfort uses her honey jam for one of its beers, and Starving Artist Brewing Co. in Ludington buys rhubarb juice from her for another beer. The Iron Fish distillery in nearby Thomsonville (See related story, Page 8) buys Wee Bee Jammin’s Menagea-Trois jam, made from raspberries, blueberries and strawberries, for a drink that it calls the Great Neighbors Cocktail. Through word-of-mouth, out-ofstate retailers have heard of her jams and sell them, including Harriet’s General Store in Culpeper, Va., and Wheyward Girl Creamery, a seller of artisanal cheeses in Nevada City, Calif. She also has retailers in New York City, Chicago and Atlanta. “We’re having a record year this year,” said Scarpace. “We’ve had records year after year.” Scarpace has grown the business slowly and cautiously, without bank loans or equity capital. “We wanted to make sure the jams would sell. I’ve seen so many entrepreneurs come and go. They quit their jobs and invest their money and then they fail,” she said. It currently offers 10 different spirits. The lowest price for a 750 milliliter bottle is $30 for what is called the Michigan rye vodka, the most expensive the bourbon whiskey finished in tawny port basks for $54 a bottle. The original 250-gallon still, named Ollie in honor of Richard’s grandfather, has been supplemented by a 500-gallon still dubbed Stella, after Wallace’s grandmother. One cocktail on offer is called the Great Neighbors, which uses as one of its ingredients a jam sourced from a nearby business called Wee Bee Jammin. (See related story, above.) The jam is made from raspberries, blueberries and strawberries. The distillery also serves charcuterie, salad, soups and appetizers,

The family works in a kitchen and retail store housed in what looks to be a historic building, something from a centennial farm, perhaps. The wood is very old, the building not so much, built in the 1980s by a previous owner from old barnwood found nearby. The store’s shelves are lined with about 20 jams at any given time, which sell for $9 for a 10.5-ounce jar and $6 for one half that size. She makes jams from the usual Michigan fruits, as well as Saskatoon berries, cranberries and autumn olives, a fruit bush reviled by some as an invasive species but planted by farmers in the 1800s for their bountiful small red fruit and ability to thrive without attention. She also sells such Michigan-themed items as mitten decals for cars, mitten-shaped pasta servers and cutting boards and Christmas ornaments and, in keeping with the Michigan theme, Sanders ice cream toppings. The store sells honey, honeycombs and creamed honey made by her bee-keeping daughter, Sarah Iseringhausen, as well as a variety of pies, pottery, locally roasted coffee, soaps and, at her husband’s insistence, Darn Tough Vermont Socks, his favorite brand. It also sells Wee Bee Jammin’-branded T-shirts, baseball shirts, hoodies and baby onesies. The Scarpaces originally owned 6 acres and recently bought the property and another six acres next door, which includes a pole barn. She said her husband would like to put in a microbrewery and she might move her kitchen, there, too. The brewery would dovetail with the skill set of one of her family employees, son-inlaw Mike Iseringhausen, who is a brewer who has worked at the Right Brain Brewery in Traverse City and at Stormcloud. Seven family members in all are involved in the operation. Son K.J., who also works full time for his dad’s polymer company, helps with distribution. Wee Bee Jammin’ sells one of his inventions, the Scarpace jig, a fishing lure with a slot in the lure to hold cut bait. Son-in-law Erick Carlson created the company’s bee logo, designed its website and designs all the Wee Bee Jammin’ apparel. There are three other part-time employees. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2 made with local ingredients, and recently installed a wood-fired pizza oven. Food trucks come in on weekends. The old farmhouse next to the distillery has been remodeled and updated and is available for rent. With all the distilleries opening in northern Michigan, Sarah Anderson said she hopes there will soon be a whiskey trail, similar to the wine trails in Leelanau and Grand Traverse counties, with tour buses making the rounds during the summer season and leading a lot more folks down their dirt road in the middle of nowhere. Tom Henderson: (231) 499-2817 Twitter: @TomHenderson2

Launching in Spring 2019 at our community-serving space at 6568 Woodward Avenue

Co.act is your space. In addition to services and

programs, we will offer meeting and event space for the nonprofit community. Thank you for building Co.act Detroit with us. We are going to do great things for the city and region together.

â&#x20AC;&#x201D;Allandra Bulger, Executive Director, Co.act Detroit

Supported by:

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

SPECIAL REPORT: BEST-MANAGED NONPROFITS

Best-managed nonprofits: Making use of data

ata is key to helping nonprofits measure and communicate their impact and to making strategic decisions about where best to invest scarce resources. But it’s not always easy to figure out how to measure intangible things like a child’s well-being, overall development and likelihood of succeeding in college. The co-winners of the 2018 Best-Managed Nonprofit contest are doing exactly that. This year, judges chose to lift up both a larger-budget nonprofit and a smaller nonprofit for the steps they are taking to get their arms around their data and use it in meaningful ways to better meet their missions. Midnight Golf has launched two new data systems over the past year. One is aimed

at keeping track of the growing number of high school seniors and college students it’s supporting. The other helps track its donors and their interests, while also providing a source of internship possibilities for the students it serves. Starfish Family Services is bringing data from over 20 disparate systems into a single system that will provide a more complete view of all of the programs a child or family it serves is receiving, along with indicators of how those clients are doing overall. Both efforts are aimed at finding the best ways to help those they serve. Crain’s will honor the two organizations in late February during its annual Newsmaker of the Year lunch. — Sherri Welch

CO-WINNER

Starfish Family Services building master record system to consolidate client data By Sherri Welch swelch@crain.com

One of Starfish Family Services’ core strengths is its ability to serve children and families through a variety of early childhood, children’s mental health and family support programs. But that same breadth of service has also been its Achilles’ heel. Information on the clients in each of its programs lives in different, siloed systems. That creates stress and frustration for parents who are asked to provide the same information over and over again. And it prevents Starfish staff from linking things like a young child’s behavioral issues in the classroom with stress happening at home due to a pending foreclosure, something communicated to the agency by the child’s mom through a separate Starfish program. “We end up with 20 different data systems we’re putting information in” on who’s served and their outcomes, President and CEO Ann Kalass said.

“We see this as an investment in something we have to do in order to achieve our mission and our family-centric view.” Ann Kalass

Need to know  It’s committed $2 million, 3-5 years to develop and roll out the new system  Will eliminate duplication, provide holistic view of children and family success  Expected to produce $2.5 million in cost savings, new revenue

“If we’re looking at the whole child ... we want to be able to see everything (they) are getting from us in early childhood, in Head Start and mental health services,” she said. “We may have a hypothesis that a combination of programs creates better outcomes ... but we can’t prove it until the data is linked.” Starfish has set out to tackle the complex issue by bringing data from all of the disparate systems into a single, master record system that will enable it to see all of the programs a child or family is receiving through the agency, success indicators across them and family relationships. That, in turn, will enable it to better identify causative factors and gaps in service. It’s committed $2 million and three to five years to develop and roll out the new, child and family master record system, a data warehouse that will enable it to report out data to funders and dashboards to track sets of data. Starfish, which is operating on a $46 million budget for fiscal 2019, is

Starfish is also working to establish an organizationwide data warehouse where it can report out on all of the data from the disparate systems. All of the data from the master record system gets put into the warehouse. “That’s how we can see holistic data ... and report out on it,” Mack said. The agency has entered its first set of data, behavioral health information, into the data warehouse and is producing weekly updates that track completion of required documentation for clients or progress toward targets for clients through “dashboards” or visual representations of data that Mack and her team liken to a car’s instrument panel. The gas gauge, for example, might show progress toward an enrollment target for the number of children in an early childhood education program on a dashboard, she said. Staff are notified of weekly dashboard updates by email and can log into the system to access the latest progress reports. Data governance and the data warehouse will form the foundation for establishing the child and family master record. “Our plan is by this time next year to have the master record system launched,” Mack said. From that point, it’s expected to take another one to three years to be fully implemented where data is entered into the master system and pushed out to the other funder systems for reporting purposes.

Return on investment Celina Byrd (left), special project director at Starfish Family Services; Autumn McCants, manager of data governance; Ann Kalass, CEO; David Williams, chief administrative officer; Christina Grimm, director of trauma and clinical services and Kirsten Mack, director of value acceleration. LARRY PEPLIN FOR CRAIN’S

funding the costs of the new system from its reserves and unrestricted operating funds. It expects to more than recoup its investment by the time it’s fully rolled out the new system in 2022. “We see this as an investment in something we have to do in order to achieve our mission and our family-centric view,” Kalass said. “As a sector, to have the impact we want, we need capacity investments that make our programs work.”

Getting data in line First and foremost, the goal with the new, master record system is to improve services to families and to make it easier for staff to provide those services, said Kirsten Mack, director of value acceleration. Starfish has contracted with Boulder, Colorado-based Global Data Strategy Ltd. to develop the new child master record system. It’s spent the past year and a half

establishing data governance to ensure all data entered across the nonprofit and its programs will be consistent. That includes everything from who will enter data and be able to access data to how it will be structured, Mack said. For example, it might mean designating someone’s race as “white,” for example, vs. “Caucasian,” or using numerical birthdates rather than spelling out months so that the system can read all data.

Just a year and a half in to development of the new system, Starfish is already seeing cost savings as it changes how it manages data. The automation of some data management led to the elimination of one full-time position that’s expected to save about $100,000 a year, Kalass said. More efficient data entry is also freeing staff up to spend more time working with clients, and that’s increased billable revenue, Mack said. And the weekly dashboard updates on required behavioral health documentation has increased the number of claims paid, which is starting to produce more revenue on that front. By the time the new system is fully online in 2022, cost savings and increased revenue from the more efficient system are projected to add up to $2.5 million, Mack said. Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

M s By

swelc

D Gol troit gram lege and B com bled from ly Fo som Pres “Th with W

 Sm tion

 Sy raise

 A inter

mill lead Solu trac wee well This that plet Mid ity alum “W Fluk ing, to b you It nigh alre W abil facto of fi able issu wise Th siste from clas perc Vice Th non softw the and sour the men was

C nize best past not plis but P test stre ble

it’s ng a

ngle ly it

ws-

blish ouse the . All cord use. data d. t set mad is rack ntaward ashs of n to

ight ment n in proStaff oard into rog-

data tion mily

year tem

d to o be enand sys-

lops alnges tion the tion ,000

also ime inaid. ates ocumber g to ont. ully ineffid up

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

CO-WINNER

Midnight Golf tracks data to help more students get into, complete college By Sherri Welch swelch@crain.com

During its early years, the Midnight Golf Program was able to track the Detroit high school seniors in its program and those who went on to college informally through its small staff and volunteer mentors. But when the number of students coming into the program annually doubled to 250 three years ago with a grant from the Jamie and Denise Jacob Family Foundation, “we knew we had to do something different,” Founder and President Renee Fluker said. “There’s no way you can keep up with 250 kids by paper.” Working with a budget of about $1.6

“We needed real information. If a board member is asking, ‘Why didn’t Jeff graduate?’ I need to be able to tell them. And then when you find out ... you can prevent it.” Renee Fluker

Need to know  Small nonprofit targets early intervention to boost graduation rates  System also increases its capacity to raise more money, help more kids  Also watching donors’ interests, internship opportunities

million, the nonprofit’s board and leadership decided to invest in Trax Solutions, giving staff the ability to track high school seniors in the 30week golf and life skills program, as well as those who went on to college. This lets staff watch for key indicators that might prevent students from completing college. The system enabled Midnight Golf to put a new intentionality behind its support for program alumni who have gone on to college. “We needed real information,” Fluker said. “If a board member is asking, ‘Why didn’t Jeff graduate?’ I need to be able to tell them. And then when you find out ... you can prevent it.” It’s been a year and a half since Midnight Golf adopted the new system, but already it’s seeing results. With more efficient tracking and the ability to collect information on more factors that impact students’ likelihood of finishing college, Midnight Golf was able to address academic and financial issues for 20 students who might otherwise have dropped out last year. That’s increased the college persistence rate — the number of students from the 2016 and 2017 graduating classes who’ve stayed in college — by 5 percent, bringing it to 80 percent, said Vice President David Gamlin. The small Bingham Farms-based nonprofit also began using another software program, Gift Works, around the same time to better track its donors and their interests and to provide a source of internship possibilities for the program’s students. Its total investment in the two programs and training was $20,000.

to colleges that are the best fit, based on factors such as their grade-point average, Gamlin said. For the college students in its program, it’s now tracking enrollment status, financial statements, transcripts, family configuration, learning challenges, first-generation college status and need for learning challenges services, among other things. The goal is to identify issues early that might keep them from completing college so they can be addressed. “That was part of the motivation for helping us to put these tools in place, so we can be more proactive and not reactive,” Gamlin said. “We needed answers for those (who were) slipping through the cracks ... we knew better data tools would help us find answers.” Beyond helping identify issues early on, the new student-tracking system has also decreased the amount of time it takes to connect with Midnight Golf’s alumni in college from more than five months to two months, Gamlin said.

Keeping track of donors

Renee Fluker, (front left) Midnight Golf founder and president, and Maya Solomon, student; David Gamlin (back left), vice president, programs; Jamie Jacob, board chair; Shannon Dulin, mentor and Colin Gillis, mentor. LARRY PEPLIN FOR CRAIN’S

Early intervention

It raised an additional $400,000 during fiscal 2018, which ended Aug. 30, with the new system and is now operating on a $2.3 million budget. The money raised enabled it to create three new full-time coach positions to work with college students, a grant writer and a fund director. Midnight Golf’s use of data is not only helping more students complete college but also increasing its capacity to do so. “There’s a lot of nice stories you can tell people about what you’re doing, but when you have facts, it changes the entire perspective,” Gamlin said.

Midnight Golf’s leadership discovered Trax Solutions, a software-based system that’s used by school systems and youth groups all over the country, during a trip to California to evaluate the TGR Foundation at the Tiger Woods Learning Center in Irvine, Calif. With grant funding from one of the Ralph C. Wilson Jr. Foundation funds established at the Community Foundation of Southeast Michigan, the nonprofit adopted Trax in the summer of 2017. It now tracks atten-

dance of the 255 current high school seniors in its program and 1,500 additional students who have gone on to college. In all, 99 percent of high school seniors coming into the program each year go on to college, Gamlin said. With Trax, Midnight Golf can follow the attendance of high school seniors in various parts of the program, from life skills classes in things like financial management, resume writing, negotiating, dressing for success and public speaking, to golf lessons and mentoring sessions. It’s also able to direct students

into judging with Crain’s panel of independent judges representing expertise in different areas of nonprofit operations. Judges look for the tenets of good management, including diverse revenue streams, board governance, involvement in fundraising and above all, how applicants stayed on mission. The judges then choose a winner from among the finalists

based on how well that organization met a specific theme for that year. This year, the contest focused on how nonprofits are using data to solve issues, operate more efficiently and strategically and better meet their missions. The nonprofit practice group at Plante Moran PLLC, led by partner John Bebes, reviewed the financial reports of all applicants.

Co-winners:  Midnight Golf Program  Starfish Family Services Finalists:  Michigan Humane Society  Rose Hill Center Judges:  Gary Dembs, president and CEO, Nonprofit Personnel Network  Kelley Kuhn, vice president, Michigan Nonprofit Association

The small nonprofit also invested in Gift Works software to better track its donors and their interests and potential internship possibilities. The easiest money to secure is repeat donations from people who have already given to you, Gamlin said. With Gift Works, Midnight Golf is less likely to lose touch with donors, as it has done in the past. It’s also able to track donors’ unique interests, whether that’s college success, youth development or golf, he said. It can communicate fine details for donors who are interested in them by pulling information from Trax. Tracking donors’ employment information is also helpful in matching students in Midnight Golf programs with supporters working in their areas of interest, such as engineering, Fluker said. With Gift Works enabling tracking and spurring follow-up, “our gifts have been much more significant and consistent,” Gamlin said. The new donor management system has enabled it to be much more professional and to provide donors with regular updates. “When we started doing that, people started responding very positively to that,” he said. “Our donors know we care about what they care about.” Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

ABOUT THE PROGRAM Crain’s Detroit Business has recognized some of Southeast Michigan’s best-managed nonprofits for the past 29 years. The contest serves as not only a way to lift up the accomplishments of those organizations, but to share their best practices. Plante Moran PLLC reviews contest applicants for financial strength, and those showing a stable financial picture move forward

 Bill Liebold, president, The Liebold Group LLC, a nonprofit and higher education consultancy, and former president, Michigan Colleges Alliance  Gerald Lindman, assistant professor, nonprofit leadership concentration, Michigan State University  Richard Martin, principal., Caleb LLC, a philanthropy consultancy

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

SPECIAL REPORT: BEST-MANAGED NONPROFITS FINALIST

Michigan Humane Society uses data to help mission By Sherri Welch swelch@crain.com

Like many nonprofits, the Michigan Humane Society operated for years without an infrastructure to capture and consolidate data from across its organization. It turned to its finance department to get the data it could on things like the amount spent on medicine or cost-per-animal ratios. But there wasn’t consistency in measurement or the quality of even that data, since it was financially focused and didn’t account

“Given the fact we have limited resources, where you put them every day is important.” Matthew Kubler

Need to know Michigan Humane Society launched a business analytics department early this year 

 System makes treatment more efficient, shortening time animals spend in shelters  It has begun to increase adoption and placement rates

for factors that might skew the averages, said Matthew Kubler, senior vice president and COO. To get a better sense of its data, the Michigan Humane Society, which is operating on a budget of about $20 million, launched a new business intelligence and analytics department early in 2018. It invested an initial annual fee of $10,000 to license software from Troybased iDashboards and dedicated staff to define the areas it wanted to measure and track. The customizable software has enabled the Michigan Humane Society to collect data from eight or more internal sources or systems and display it in a

Matthew Kubler (left), COO; Doug Plant, chief mission officer; Shirene Cece-Clements, DVM and medical director; Matt Pepper, president and CEO; Kelley Meyers, DVM and vice president of animal welfare. LARRY PEPLIN FOR CRAIN’S

dashboard system that can be accessed directly by staff and automatically updates to provide the latest numbers. The system brings together disparate information on things like the animal population, where each animal is housed and medical data, along with information on adopters, volunteers and financials. Before its implementation, animal

medical records were housed in a different system than records from its shelters, containing each animal’s description, origin and location in the shelter. Staffers had to go into two systems for each animal to identify medical issues for each tiny tenant before it could be treated. At any given time, the nonprofit has between 800 and 1,000 animals in its

care across its three shelters in Detroit, Rochester Hills and Westland, its adoption center at a Petco store in Sterling Heights and a foster care program. With the new system and two fulltime staffers focused on ensuring data gets into it, employees now get nightly updates on things like medical status for animals, the number waiting to be evaluated and in foster care, what type

of medical care each needs and how long animals have been in the shelter. “We’ve been able to reduce the stays for these animals because it’s so top of mind,” Kubler said. “(And) there are a lot of little ways to connect the dots that we haven’t been able to do before.” For example, staff are now able to see larger issues such as heartworm or need for sterilization and, where it makes sense, to treat groups of animals rather than just treating each animal individually while others with the same issue wait in a holding area just down the hall. “Given the fact we have limited resources, where you put them every day is important,” Kubler said. The more efficient approach to treatment that’s been enabled by the data is leading to more animals being adopted, he said. A kitten boom that showed in the data, for example, enabled the humane society to market that to foster care givers weeks in advance and get them into homes. In just the first nine months since the humane society launched the iDashboards system, live release rate of animals being adopted or returned to owners rather than being euthanized or dying from disease outbreaks in the shelter has increased from 80 percent to 82 percent. In reality, the impact has been even greater, Kubler said. “We’re able to help animals that in prior years we couldn’t because we have more information at our fingertips.” Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

FINALIST

Rose Hill Center assesses living skills to measure wellness By Sherri Welch swelch@crain.com

Spurred by questions from patients, their families and payors, Rose Hill Center set out three years ago to better document the outcomes of its residential psychiatric treatment programs. “People have always benefited from the treatment we do at Rose Hill; what we wanted to do was am-

“People have always benefited from the treatment we do at Rose Hill; what we wanted to do was amplify that.” Ben Robinson

Need to know Foundation funding buys software-based system to track daily living activities 

 Data, feedback from patients, families helps center fine-tune programs  In three years, patients’ scores show improvement

plify that,” by demonstrating that the center’s approach is impactful, said President and CEO Ben Robinson. With support from local foundations, in 2015 it invested $100,000 in a new, software-based system, the Daily Living Assessment 20, establishing baseline clinical statistics to evaluate how well its residents are doing and the effectiveness of its programs and procedures. The center has self-funded additional costs of about $50,000 each year to renew the software license and hire contract staff to help with assessments. Rose Hill Center is now collecting information through interviews on residents’ daily living activities, in-

Veronica Smith (left), director of professional outreach; Ben Robinson, president and CEO and Cheryl LeClear Wallace, vice president of programs at Rose Hill Center. LARRY PEPLIN FOR CRAIN’S

cluding their personal care and hygiene, interactions with others, nutrition, time management and problem solving. Those daily living scores are measuring something intangible: their overall wellness. “The main reason we collect the information is to see the outcomes for the people we serve,” Robinson said, and to make adjustments where needed. The center, which operates on a $6 million budget, has about 70 people in its core residential treatment program. It didn’t see as much progress as it would have liked in the daily living scores after launching the program, Robinson said. So, last year, based on the data and feedback from residents and families, Rose Hill added verbal therapy on a one-to-one and group basis, focused on particular illnesses, such as personality disorders. During 2017, residents of Rose Hill’s core residential program, who stayed about eight months, saw a 31 percent improvement, on average, in daily living activity scores, from admission to discharge. Those in its co-occurring program, with both a mental illness and a substance abuse addiction, saw an average improvement of 80 percent in daily living skills. And the dozen or so people who moved into semi-independent living on Rose Hill’s campus saw a 114-percent average improvement. Last year, Rose Hill added a second assessment to measure outcomes,

following a mandate from the Joint Commission, a national, nonprofit health care accrediting agency. And it launched an additional program to track the success of its residents post-treatment for two years, with funding from the Community Foundation for Southeast Michigan. It’s checking in with residents after they have been discharged to assess whether they are in a stable living environment, have been rehospitalized or incarcerated, as well as activities in their daily life and their relationships with family and friends. “That’s really important at the end of the day: how well people do after they leave us,” Robinson said. Beyond its clinical measurement, Rose Hill also began measuring staff turnover and shortages of fully trained staff, an issue facing the entire human service industry. Frequent staff turnover has a negative impact on quality, Robinson said. Not only is it costly, but it negatively impacts continuity of relationships between staff and residents. “Having high-quality staff with longer tenure ... is definitely helping us with outcomes,” he said. To help address turnover, Rose Hill hired a human resource manager focused on recruitment, initial onboarding and training and employee morale, something that’s helping with staff retention, Robinson said. Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

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

WOMEN IN LEADERSHIP

Olga Loizon (right), founder of Olga’s Kitchen, dines with a young patron. Below, Loizon in a photo from the early days of Olga’s Kitchen.

Olga’s Kitchen founder was first woman to get a loan from her local bank By Rachelle Damico

kids absolutely went crazy over the sandwich. They said, “momma, can you put your bread on this meat?” I said, “I can put my bread on anything.”

Special to Crain’s Detroit Business

Olga Loizon is the founder of Olga’s Kitchen, a Southeast Michigan restaurant chain known for its Mediterranean-style sandwiches wrapped in “Olga” pita bread. Loizon began experimenting with a bread recipe at home in the 1960s. While traveling to Greece in 1965, she bought her first piece of equipment, a vertical rotisserie gyro machine. Loizon began selling sandwiches at an art fair in downtown Birmingham in 1967. About four years later, she leased Olga’s first space at the former Continental Market in Birmingham. The company was sold to two private investors in 1976. It is now owned by Livonia-based Team Schostak Family Restaurants and has more than 25 locations across Southeast Michigan. Loizon is 92 years old. What made you want to start a restaurant?

I’ve always liked cooking. I worked on a recipe for bread and thought wow … I’ve really got something here. I thought I’d be able to do something with it. I had never been in business before. I was a housewife, raising three children. In 1965, I went to Greece with my children, where my aunt, uncle and their kids lived. When we arrived, my kids and I went to a Greek market and tried souvlaki (a popular Greek sandwich made with grilled cuts of meat). My

How did you get your first piece of equipment?

“I’m very proud of my story and I hope it will help other women if they have an idea and they’re afraid to follow through. Don’t be afraid, get out there and pray everything will go well.”

My uncle told me about an equipment store in Athens where I could buy a gyro machine to cook the meat I’d use for the sandwich. However, when I went to the store the men that worked there looked at me like, who in the hell are you? One said, “What do you want?” I said, “I want to buy the machine for the meat. I’m going to take it back to where I live to open up a place.” They started swearing at me in Greek and told me to get out. I said, “Why? I have money and I want to buy the machine.” They kept swearing at me. I became very upset and I left. When I went back to where my uncle and aunt lived, I told my uncle what happened, and he became upset. He said, “Give me the money, I’ll buy the machine.” He bought it, and built a wood crate for it in order for us to take it back home by ship. When we got home to Michigan, I told my kids, “You have to tell dad it’s wonderful, we’ll make a lot of money.” However, the machine ended up sitting in our basement for years. When did you sell your first sandwich?

The gyro machine was in the basement driving me crazy. In 1965, we

lived next door to an artist in downtown Birmingham who held an art fair on Park Street. He needed someone to provide the food, so I volunteered myself. My kids and I set up in the driveway temporarily, and that’s the first time the machine was used. We sold our first sandwich for 75 cents. That first day we made $13. I kept telling people, “try it, you’ll like it. If you don’t like it you don’t have to pay for it.” Then, that was it. I was in. People kept coming back. That proved to me that it was a success. How did you open your first location?

I was going for a walk in the Continental Market and I said to myself, “I’m going to get the money, and this is going to happen.” I walked down an alley and saw a woman who had a clothing store was renting her space. I said to myself, “Olga, this is it.” I asked her about it, and she took me to meet the owner of the market. I told him I wanted to rent the space and start a little Greek homemade sandwich place. I’ll never forget his secretary. She was listening to our conversation and she said, “That sounds terrible, you’ll never make any money.” I said, “That’s up to me, not up to you.” The owner and I made arrangements to lease the space. He said I could start right away, and that they needed somebody like me in the market. I turned towards the secretary on my way out and said, “You’re

going to love it.” How did you fund the business?

I had asked my husband for the money, but he said, “Do you know how many bills we’ve got, Olga?” The next day, I went to my local bank, Detroit Bank and Trust, and asked for a loan. Initially, Mrs. Kelly (a bank teller that knew the Loizon family) told me I had to have my husband cosign, but he said he didn’t want to get involved. When I became emotional and explained the situation to Mrs. Kelly, she gave me the $3,000 loan. I was the first woman to get a loan from my local bank. Why did you decide to sell the company?

We were getting busier and busier. When the investors came along, it was a good opportunity. I’m very proud of the company it has become. My hope is that it continues to keep flying. Do you have any advice for other women that want to start a company?

Do it, no matter how many obstacles. I’m very proud of my story and I hope it will help other women if they have an idea and they’re afraid to follow through. Don’t be afraid, get out there and pray everything will go well. Be proud that you’re trying to do something that makes you feel good ... like how I feel.

As a supercharged fourth-grader, Ishani has been sparked by her experiences at The Henry Ford. In fact, here at the 2018 Michigan Invention Convention, she debuted the Mochi Ka (Cobbler’s) Boot, her invention to protect AFO (ankle-foot orthosis) leg braces in the snow.

INSIDE EVERY CHILD IS THE POTENTIAL TO C H A N G E T H E WO R L D “ The

Henry Ford believes every child should have the opportunity to reach their potential. With the launch of The Innovation Project, we’re on a mission to realize it. Our $150 million comprehensive campaign will advance innovation, invention and entrepreneurship for a whole new generation of learners and leaders, regardless of barriers or backgrounds — a value that The Henry Ford prioritizes at every level of our organization. If one spark can change a life and change the world, imagine what a million can ignite. Join us. ” — Patricia E. Mooradian, President and CEO The Henry Ford

THEI N N OVATI ON PR OJ ECT.OR G

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

NOTABLE WOMEN IN NONPROFITS build endowments, programming and relationships for the organizations they help lead. They secure donors, advocate for change and search nonstop for new and creative approaches to fundraising. In short, they are about impact. The 59 women in this report were nominated by their peers at work and in the community (read more about how they were chosen on Page S2).

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

ANYA ABRAMZON

LYNN ALEXANDER

TONYA ALLEN

Executive Director, Jewish Family Services of Washtenaw County, Ann Arbor Education: Master of Social Work, University of Michigan

Senior Vice President and Chief Marketing Officer, Presbyterian Villages of Michigan, Southfield Education: Master of Arts in Psychology, Lone Mountain College (now San Francisco State University)

President and CEO, The Skillman Foundation, Detroit Education: Master of Social Work and Master of Public Health, University of Michigan

Anya Abramzon doesn’t just dream big, she successfully persuades stakeholders to share those dreams. Under her direction, JFS of Washtenaw County grew from a $35,000 nonprofit to a nationally acclaimed social service agency with a $3.4 million budget. JFS serves 10,000 people annually, providing refugee resettlement services, elder services, clinical and community services, and employment and training. Known for taking risks and adapting well to challenges, Abramzon led the establishment of the Amster Center, a department responsible for generating income through social enterprise, when funding decreased. JFS also created Washtenaw Integrated Senior Experience, which will create an intake, assessment and referral system for older adults and their caregivers. When the federal government reduced the number of immigrants permitted to enter the U.S., she reconceived the services offered. JFS added a Micro-Enterprise Development Program for refugee women and the Individual Development Accounts Program to help refugees save money to buy cars, start a business or buy a home. “Anya Abramzon has single-handedly changed the lives of hundreds of people and families in Washtenaw County. No job is too small or too large for her. She goes beyond what most people will do for a family, encouraging, challenging and ensuring that each and every client will live a good life and realize their potential,” said Nancy Margolis, past director of the Ann Arbor Jewish Federation.

Lynn Alexander has played a crucial role in the growth of Presbyterian Villages of Michigan, which provides living facilities and elder care for more than 6,000 senior residents. “Lynn’s experience, knowledge and passionate commitment to improving the lives of seniors has greatly benefited the growth of PVM’s mission. Since joining the PVM executive team in May 2012, Lynn’s leadership has expanded our organizational capacity and strengthened our reputation,” PVM President and CEO Roger Myers said. Under her leadership, the organization has increased to 34 communities serving people of a variety of socio-economic levels. She has helped implement multiple new initiatives include wellness programming, caregiver and support programs, enhanced public advocacy and community outreach. When the state legislature was considering disallowing nursing home nonprofits, such as PVM, from operating as standalone or management entities, Alexander and her team worked to stop the legislation. Moreover, Gov. Rick Snyder appointed Alexander to the board of the Michigan Health Endowment Fund, which administers $1.5 billion dedicated to services for children and the aging. Alexander serves as vice chair. “Lynn provides great thought regarding the quality of the grants for the Michigan Health Endowment Fund and brings a caring perspective,” said CEO Paul Hillegonds.

Tonya Allen’s advocacy for the well-being of underserved Detroit residents has earned her many honors. A Crain’s 40 under 40 honoree and one of its 100 Most Influential Women, Allen earned a Marshall Memorial Fellowship and was named the Detroit News’ Michiganian of the Year and one of Chronicle of Philanthropy’s 5 Nonprofit Innovators to Watch. At the Skillman Foundation, which champions education, economy and equity for Detroit youth, Allen has been instrumental in numerous community programs, including the Grow Detroit Young Talent initiative that places youth in paid positions. Since its launch, GDYT opportunities increased from 2,500 to 8,200 jobs. And as co-chair of the Coalition for the Future of Detroit School Children, she helped advocate for $667 million for the Detroit Public Schools Community District, for the return of an elected school board and for increased charter accountability. Allen also designed Detroit’s 10-year, $120 million Good Neighborhoods program and helped grow programming for children by 40 percent, reduce child victimization by 47 percent and increase graduation rates from 65 to 81 percent. “She has a tremendous ability and passion to convene community partners, outline challenges, align strategies and mobilize teams,” said Mark Reuss, executive vice president of Global Product Development, Purchasing and Supply Chain at General Motors Co. “Tonya’s leadership in creating a vibrant and healthy city focused on the children is an important factor in Detroit’s recovery now and for generations to come.”

CAROLYN BLOODWORTH Secretary/Treasurer, Consumers Energy Foundation and CMS Energy Foundation and Director, Corporate Giving, Consumers Energy, Jackson Education: Bachelor of Arts, Management of Human Resources, Spring Arbor University Carolyn Bloodworth is an effective team builder who works tirelessly to meet the basic needs of Michigan residents through Consumers Energy Foundation and Consumers Energy employee volunteers. “Throughout her tenure as director of Corporate Giving at Consumers Energy, she has raised hundreds of millions of dollars for our communities in Michigan. Her enthusiasm for volunteering is contagious; not only does she manage our corporate giving, she mobilizes our coworkers to volunteer as well. Carolyn is generous with her time and energy, and I am so lucky to call her my co-worker,” said Patti Poppe, president and CEO of CMS Energy and Consumers Energy and chair of the Consumers Energy Foundation and CMS Energy Foundation. After revelations of the Flint water crisis, she led efforts for Consumers Energy Foundation to work with Detroit Pistons owner Tom Gores to establish the $2 million Flint Promise Scholarship. The scholarship helps Flint students attend college. Under her leadership, the Foundation supported Habitat for Humanity’s Neighborhood Revitalization Program, which includes employee volunteers helping to build and revitalize homes. Under Bloodworth’s direction, Consumers Energy Foundation has supported Community Economic Development Association of Michigan’s tax assistance program; helped Jackson-based chefs grow their businesses; expanded the Jackson School of the Arts to a historic downtown building and donated $1.7 million to United Ways across Michigan through the foundation, employees and retirees. Gov. Jennifer Granholm and Gov. Rick Snyder appointed Bloodworth to serve on the board of the Michigan Nonprofit Association. She also is vice chair of corporate philanthropy for the Council of Michigan Foundations.

ANGELA AUFDEMBERGE President and CEO, Vista Maria, Dearborn Education: Master of Arts in Business Administration, Wayne State University Angela Aufdemberge became CEO of Vista Maria after serving in a variety of roles as a volunteer and member of the nonprofit’s Board of Directors for 14 years. “Under Angela’s leadership, Vista Maria has grown into a best-in-class treatment provider for Michigan’s most vulnerable children. Angela is a respected leader, a strategic thinker and a compassionate voice of reason. Vista Maria and the thousands of young people in its fold are better for having Angela at the helm,” said James Gouin, CEO of Tower International and chairman of the Vista Maria Board of Directors. Aufdemberge has launched several initiatives that include afterschool programming for children, STEM programming for middle school girls and no- and low-income housing as part of a transitional-living program for homeless young women who age out of foster care. She also raised $1.5 million in 18 months to expand treatment for adolescent female victims of human trafficking. Now she is overseeing Vista Maria’s $4.6 million Restore capital campaign to build a second treatment center. In addition to providing trauma response training so staff can help youth identify personal trauma triggers and implement self-care plans, Aufdemberge also implemented employee self-care programming to help employees combat the stress that comes with compassion fatigue. Aufdemberge’s efforts not only have paid off for staff and children but the McGregor Foundation recently named her as 2019 Eugene A. Miller Fellow.

comm first withi exec In ter re cal s unte Wate abou wate Bu integ man more abou the R teers Asso Mich “K dedi ed to a rem tions rallyi mitm men said chard

HOW WE SELECTED THE NOTABLE WOMEN IN NONPROFITS The women featured in this Notable Women in Nonprofits report were selected by a team of Crain’s Detroit Business editors based on their career accomplishments, their nonprofit success stories and evidence that they mentor others in their field, as outlined in an extensive nomination form. The nominators pay a processing fee to nominate the women; those chosen did not pay to be a part of the section. Notable Women in Nonprofits was managed by Leslie D. Green. For questions about this report, contact Amy Elliott Bragg at 313-446-1646 or abragg@ crain.com or Michael Lee at 313-4461630 or malee@crain.com. For more in the Notable Women series, visit crainsdetroit.com/NotableWomen.

peop patie agen care, Kn know scho morn decre men D healt med sive subs impr “E Fami ularl gove role of Oa borh tions mitte treat mod chair cal d the n Partn

iness

ame roles oard

rown gan’s eadce of peothe ional ors. that prow-inm for . o exf huaria’s ld a

ining trigberge ming with

ff for n reow.

e s n e o

s t @ n -

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

KIMBERLY BURTON CEO, Michigan Region, American Red Cross, Detroit Education: Master of Public Administration, University of Michigan Kimberly Burton has a tireless ability to ignite success through community and volunteer engagement. She is the first woman of color appointed to the CEO position within American Red Cross and the first person to get executive oversight of the entire state. In recent years, her team not only provided disaster relief, services to the armed forces and biomedical services but also gathered more than 4,800 volunteers to help residents in Flint. During the Flint Water Crisis, the Michigan Red Cross distributed about 2.7 million bottles of water and nearly 10,000 water-testing kits. Burton’s fiscal 2018 strategic planning included integrating all of the Red Cross entities under one management umbrella. Her results included raising more than $21 million and recruiting and training about 6,000 volunteers. In addition to being CEO of the Red Cross’s Michigan region, Burton also volunteers for the nonprofit. She is also a member of the Association of Black Foundation Executives and Michigan Forum for African American Philanthropy. “Kimberly is a consummate professional and a dedicated leader willing to make any sacrifice needed to advance the mission of her organization. She is a remarkable individual who goes beyond expectations and regularly exceeds all limits in her path by rallying teams with her sincere enthusiasm and commitment to service. Skills can be trained, commitment cannot, and Detroit needs people like Kimberly,” said Michael Williams, president and CEO of Orchards Children’s Services.

JAIMIE CLAYTON President and CEO, Oakland Family Services, Pontiac, Board Chair, Partners 4 Health Education: Master of Counseling, Wayne State University Jaimie Clayton leads about 200 people at Oakland Family Services, which is an outpatient substance misuse treatment provider, an agency that places children for adoption and foster care, and an early education center. Known as an adaptable, hands-on leader, she knows the name of every staff member and visits preschoolers in the Children’s Learning Center each morning. Her leadership has helped grow revenue, decrease turnover and increase employee engagement. During Clayton’s tenure, she has helped integrate health care by coordinating care with a co-located medical clinic, oversaw implementation of an intensive outpatient treatment option for individuals with substance use disorder and helped reduce risk and improve efficiency and effectiveness. “Even though Jaimie has been the CEO of Oakland Family Services for a relatively short time, she is regularly sought out for advice by other nonprofit CEOs, government agencies and other groups. In her current role as board chair of Partners 4 Health (comprised of Oakland Family Services, Common Ground, Neighborhood Service Organization and Southwest Solutions) and her prior role as chair of the program committee, Jaimie has provided leadership in clinical treatment management and the financial and pricing model. … She can operate strategically as a board chair, and she can also operate as an expert in clinical details. She’s helped take Partners 4 Health to the next level,” said Ken Whipple, Board of Directors, Partners 4 Health.

“Skills can be trained, commitment cannot, and Detroit needs more people like Kimberly.” Michael Williams, president and CEO, Orchard Children's Services on American Red Cross Michigan Region CEO Kimberly Burton

“Melanca (Clark's) strong leadership of the Hudson-Webber Foundation continues its long-standing commitment to ensuring all residents of Detroit can participate in the revitalization and that what happens is sustainable.” Mariam Noland, president, Community Foundation for Southeast Michigan

CAROLYN CASSIN

MELANCA CLARK

President and CEO, Michigan Women Forward, Detroit Education: Master of Public Administration, Western Michigan University

President and CEO, Hudson-Webber Foundation, Detroit Education: Juris Doctorate, Harvard Law School

Carolyn Cassin co-founded Michigan Women Forward (formerly Michigan Women’s Foundation) nine years ago. The organization strives to advance equality and opportunity for women and girls to create a Michigan where women are recognized leaders who thrive, contribute and uplift the state’s future. Under Cassin’s direction, MWF has invested nearly $1 million in 66 women-owned and -led businesses. In three years, these companies have contributed more than $17.8 million to Michigan’s economy. The organization also provides education and mentorship focused on social responsibility, STEM education, financial literacy, entrepreneurship and self-esteem to help women start and grow businesses. In 2015, MWF created the Enough SAID (Sexual Assault in Detroit) campaign, which has leveraged $1.5 million in donations into more than $10 million in government funding. Since then, the 11,341 rape kits in the Detroit backlog have been tested, nearly 150 convictions have resulted. Cassin was named one of Michigan’s 100 Most Influential Women by Crain’s and serves on the board of the Detroit Regional Chamber. “During her leadership of Michigan Women Forward, she has been dogged in her desire to help women improve their circumstances through small business and economic autonomy. Carolyn … has raised millions of dollars and instituted innovative programs across the state of Michigan by focusing on the goals, not the obstacles,” said Lauren Bigelow, CEO, Growth Capital Network.

PAULA CUNNINGHAM

Previously, Melanca Clark served as White House Public Policy Council’s senior policy adviser under former President Barack Obama. Her focus was on criminal and juvenile justice reform and civil legal. She also was chief of staff of the Department of Justice’s Office of Community Oriented Policing Services, a grant-making department. Now she oversees operations for Hudson-Webber. The nonprofit provides $7 million in grants each year to organizations working for economic development, safe communities, culture and more. Clark strives to be a voice for inclusion and equity and address structural barriers to opportunity for people of color. To do this, her strategy includes decreasing grants for façade improvement and increasing grants that provide systemic approaches to social justice and equity. Under Clark’s direction, Hudson-Webber granted $1 million to Develop Detroit Inc. for affordable and mixed-income housing along with $1 million to Invest Detroit’s Strategic Neighborhood Fund. “Melanca’s strong leadership of the Hudson-Webber Foundation continues its long-standing commitment to ensuring all residents of Detroit can participate in the revitalization and that what happens here is sustainable. Her dedication and caring are seen in all she does,” said Community Foundation for Southeast Michigan President Mariam Noland. Clark is active in industry organizations, serving on University of Michigan’s Youth Policy Lab, the Board of Directors of the ACLU of Michigan, Council of Michigan Foundations, Downtown Detroit Partnership, Michigan Future Inc. and more.

Leading with Passion and Purpose

State Director, AARP Michigan, Lansing Education: Master of Labor and Industry Relations, Michigan State University Paula Cunningham leads and directs advocacy and community outreach for AARP’s 1.4 million Michigan members and nonmembers, ages 50 and older. Under her direction, AARP Michigan was instrumental in the passage of the 2016 Michigan Care Act, which supports and provides caregivers with basic information and training when family members go into the hospital and as they transition home. Her team also has implemented several new initiatives including Experience for Hire, which connects older job seekers with employers, and “Disrupting Disparities: A Continuum of Care,” a comprehensive assessment of health disparities for older adults. Cunningham is active in the Michigan Association of United Ways and serves on the boards of directors of Davenport University and McLaren Health Systems. Earlier this year, Olivet College recognized her for Individual and Social Responsibility. In 2016, the Michigan delegation of the Congressional Black Caucus honored her with its Trailblazer Award. Now, Cunningham is leading the charge for the State of Michigan to receive the AARP/World Health Organization designation as an age-friendly state. “With an exceptional leader like Paula Cunningham at the helm, AARP will continue its dynamic and effective advocacy and community outreach efforts going forward,” said AARP Regional Vice President Rawle Andrews.

CONGRATULATIONS Carolyn Bloodworth for being

named among the 2018 Notable Women in Nonprofits. Your warmth and passion for Michigan’s communities and your generous spirit has left a lasting impact on us all. #CEVolunteers • Connect with Carolyn on Twitter @BloodworthCare

177014

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

SHELLEY DANNER

VERNICE DAVIS ANTHONY

Program Director, Challenge Detroit, Detroit Education: Leadership Coaching graduate certification, Georgetown University

President, VDA Health Connect and Anthony & Associates, LLC, West Bloomfield Education: Master of Public Health, University of Michigan

Shelley Danner develops design thinking and principles programs for Challenge Detroit’s fellowship model, which includes 30 early-career professionals in design, communications, social work, journalism, urban planning, business and other backgrounds. Each serves the community through work at host companies and challenge projects that support about five nonprofits annually. The nonprofit, which partners with more than 90 organizations, has created more than 200 jobs and generated more than $11 million in economic value. For her part, Danner has designed and led more than 55 community impact project partnerships. “More recently in my role at the (Detroit Economic Growth Corp.), I collaborated with Shelley on a challenge project partnership focused on equitable small business development across the city’s neighborhoods for our Motor City Match and Motor City ReStore initiatives. This successful project provided over $20,000 in pro-bono services for our nonprofit. Shelley was an excellent partner in scoping a very useful and realistic project that addressed our small business team’s core challenges and resulted in deliverables our very busy staff could easily implement,” said Kyla Carlsen, a 2015-2016 Challenge Detroit Alumni Fellow and a DEGC small business financial manager. Danner serves on the advisory board for the University of Detroit Mercy’s Master of Community Development Program and teaches design thinking principles for social impact at the College for Creative Studies.

Vernice Davis Anthony has served as a health officer at three levels of government — city, county and state — including CEO of Greater Detroit Health Council. As public officer for the city of Detroit, Davis Anthony directed the return of the City Health Department from a nonprofit back into city government as required by the city charter. At Wayne County, she worked with state and local legislators to redesign indigent care funding and provided leadership to increase access to quality health care for un- and underinsured individuals. After serving on Focus: HOPE’s board of directors for 10 years, the nonprofit named her interim CEO in January 2018. As such, Davis Anthony led Focus: HOPE through restructuring and strategic planning that included streamlining programming and developing earned revenue models. She worked with the Southeast Michigan Perinatal Quality Improvement Collaboration (SEMPQIC), a regional coalition of health care providers, physicians, nurses and others working with 23 birthing hospitals. “Vernice Anthony has a passion for the health and well-being of mothers and babies. Her leadership has been instrumental in assuring the SEMPQIC maintains a mission of addressing birth inequities and improving the disparate infant mortality rates for people of color in this region. She wants ALL babies to live and thrive,” said SEMPQIC co-lead Alethia Carr. Davis Anthony also partnered Focus: HOPE with Mission Throttle to help stabilize the nonprofit's finances.

Congratulations

WENDY LEWIS JACKSON MANAGING DIRECTOR, DETROIT PROGRAM and fellow 2018 Notable Women in Nonprofits for all of your achievements

kresge.org

KELLI DOBNER Chief Advancement Officer, Samaritas, Detroit Education: Master of Arts in Communication, Wayne State University Kelli Dobner has only been in her current job for a little more than a year, but she has made a significant impact at Samaritas, which provides adoption, foster care, family preservation services, refugee resettlement services, affordable housing and at-home services and residential communities for seniors and persons with disabilities. As a volunteer prior to joining the organization, Dobner developed a Culture of Ambassadorship, which places emphasis on storytelling and passion-sharing to make an impact with individuals. The initiative increased fundraising to $3.4 million from $700,000. Since becoming chief advancement officer, she launched Samaritas Nation, an initiative creating pride and devotion among the nonprofit’s 1,600 employees and leadership through refocused language, internal messaging and team-building. Dobner efficiently creates partnerships that benefit those they serve. Under her guidance, Samaritas and the Arab American & Chaldean Counsel are partnering to provide housing for low-income families, immigrants and refugees in the 7 Mile/I-75 corridor. In Hamtramck, Dobner orchestrated Freedom Village, a community to be constructed in early 2019 to provide transitional housing, education programming and other assistance for refugees in their journey to home ownership. The project is a partnership with Samaritas, Wayne County Land Bank and Wayne Metro. “Under her leadership, we have successfully rebranded the organization and have made significant gains in our annual and capital campaign fundraising, as well as increasing the efficiency and effectiveness of our marketing activities across all service lines. Kelli values every voice at the table and relishes giving young women a chance to shine by giving challenging assignments with an open-door directive that encourages high-level, strategic collaboration,” said Samaritas CEO Sam Beals.

LYNETTE DOWLER President, DTE Energy Foundation, Detroit Education: Master of Business Administration, University of Toledo Lynette Dowler took over as president of DTE Energy Foundation in January because, said David Meador, DTE Energy vice chairman and chief administrative office, she brings strategic focus and strong leadership to the role. “Lynette’s track record of successfully transforming plans into action makes her well-suited to execute the vision of the DTE Energy Foundation Board,” he said. Prior to becoming president, Dowler was DTE Energy Plant Director, where her commitment to corporate citizenship resulted in the River Rouge Power Plant receiving a Regional Corporate Habitat of the Year Award. As chair of the Monroe County Community College board of trustees, Dowler testified before the U.S. House of Representatives Higher Education and Work Force Training Subcommittee on behalf of DTE. As president, Dowler oversees $21 million in annual grantmaking to more than 300 nonprofit organizations across Michigan. The organization helps serve meals to 25,000 seniors, incite more than $120 million in neighborhood revitalization, generate $50 million in economic impact and employ 650 adolescents every summer. Under Dowler’s direction, DTE Foundation granted $100,000 to expand the Grow Detroit’s Young Talent program and $300,000 for Detroit Public Schools to install water stations amid concerns over lead in the water.

“Vernice Anthony has a passion for the health and well-being of mothers and babies. Her leadership has been instrumental. ... She wants ALL babies to live and thrive,”” Alethia Carr, co-lead, Southeast Michigan Perinatal Quality Improvement Collaboration

“Kelli (Dobner) values every voice at the table and relishes giving young women a chance to shine by giving challenging assignments with an open-door directive that encourages high-level, strategic collaboration.” Sam Beals, Samaritas CEO

DARIENNE DRIVER President and CEO, United Way for Southeastern Michigan, Detroit Education: Doctor of Education, Harvard University Darienne Driver is known as a high-energy visionary who initiated a series of bold reform measures throughout her career designed to ensure equity and improve achievement outcomes. Driver joined United Way for Southeastern Michigan in July after leading Milwaukee Public Schools as superintendent for four years. Before that, she was the district’s first chief innovation officer, where she was successful in narrowing the achievement gap in the district’s lowest-performing schools. In Milwaukee, she was known for her love of children, her proactive educational initiatives, and her ability to forge relationships with people of various political views. She began her education career as an elementary teacher in Detroit. In her new role, Driver hopes to boost the United Way’s presence in the community with satellite centers that could address residents’ basic needs and enhance partnerships in Wayne, Oakland and Macomb counties. Driver serves on the Board of Overseers for Harvard University.

Detro child be sc Eg child troit’ ing h Detro Each nizat La fund brou “F have abou certa syste catio Detro man chair Eg Suza Detro “C She is wi them Cent

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

CINDY EGGLETON

s e

as a initit her prove

Michils as was she ap in

child her rious as an

nited cenand MaHar-

Co-Founder, CEO, Brilliant Detroit, Detroit Education: Master of Psychology, Wayne State University Nearly three years ago, Cindy Eggleton and Jim and Carolyn Bellinson co-founded Brilliant Detroit, which is dedicated to providing families with children (birth to 8 years old) with the necessities to be school-ready, healthy and stable. Eggleton applied a community organizing, early childhood education model from Los Angeles to Detroit’s underutilized housing stock to coordinate existing health, social and education entities. Brilliant Detroit plans to have eight sites by the end of 2018. Each serves at least 125 families. In total, the organization serves about 2,400 people. Last year, Eggleton led the organization’s first fundraising event with a goal of raising $100,000. It brought in $1.5 million in donations. “For a 3-year-old early childhood organization to have a leader as knowledgeable and passionate about undeserved children is extremely rare. I am certain that her love for her community and drive to systematically change the cycle of poverty and educational underperformance will permanently change Detroit in one generation,” said James Bellinson, managing member at Riverstone Growth Partners and chair of the board of directors at Brilliant Detroit. Eggleton serves on the board of directors for St. Suzanne’s Community Center and as an advisor to Detroit Parent Network and Center for Success. “Cindy is a collaborator in every sense of the word. She ensures everyone is heard and valued, and (she) is willing to give so much to others in order to lift them up,” said Andrea Meyer, executive director of Center for Success Network.

NANCY FINEGOOD Executive Director, Michigan Historic Preservation Network, Lansing Education: Master of Business Administration, Accounting, Wayne State University Nancy Finegood has been a rock in the preservation of Michigan’s architectural and cultural heritage. “Starting with window repair training courses that provide new contractors around Michigan, to the rehabilitation of a vacant building for the organization’s headquarters in Lansing, to the revolving loan program, to rehabilitating buildings in Detroit’s East Jefferson-Chalmers neighborhood and creation of the Living Trades Academy, Nancy has added programs to MHPN that not only preserve historic buildings but help people by providing new skills and jobs,” said Kristine Kidorf, founder and president of Kidorf Preservation Consulting and a past president of MHPN. During Finegood’s 17-year tenure, MHPN has enhanced fundraising efforts, implemented new financial tools for smaller preservation projects, developed a nine-week Living Trades Academy and invested in new communities. Proposed legislative changes to the Local Historic District Act in 2016 would have reduced the ability of more than 70 communities to protect their historic resources. But Finegood’s team worked with the MHPN board, membership, volunteers, lobbyists and other partners to successfully mount a defense. “Nancy understands the full impact of historic preservation, rehabilitation, Main Streets and other components to sustain healthy neighborhoods and works tirelessly to advocate and secure resources for them,” said Jamie Schriner, executive director of the Community Economic Development Association of Michigan.

RENEE FLUKER “I am certain that her love for her community and drive to systematically change the cycle of poverty and educational underperformance will permanently change Detroit in one generation.” James Bellinson, board chair, Brilliant Detroit, on Brilliant Detroit cofounder and CEO Cindy Eggleton

“Since I started my organization, she has been a constant light and mentor to make sure I am making an impact on the world in my own unique way.” Shanel Adams, founder, Progressionista, on Midnight Golf Program founder Renee Fluker

Founder and President, Midnight Golf Program, Bingham Farms Education: Bachelor of Social Work, Wayne State University Renee Fluker, a single mother, founded Midnight Golf Program in 2001, with encouragement from leadership of the PGA of America, after seeing how academic preparedness along with golf opened doors for her son, now an alum of Loyola University. MGP, with more than 60 mentors, has since served 2,500 youth from low-income communities. Each session includes skill training, dinner, golf and mentoring. Youth learn the importance of attendance, following a dress code, and the hidden expectations — such as those found in the game of golf — that open doors to career success. When Detroit Employment Solutions Corp. cut funding to MGP, the nonprofit cut ties to the organization. Under Fluker’s direction, MGP diversified funding sources, hired a fund development director, implemented software tools for gift and donor management, restructured the board of directors and created an advisory board. The nonprofit also has a waiting list of mentors prepared to join the program. As a result, MGP has been able to double its budget and the number of students it serves. Last year, more than 40 percent of MGP participants were first-generation college students. “Ms. Reneé has been my mentor since I was a high school senior in her program, Midnight Golf. Her example was one of the main reasons I founded my nonprofit, Progressionista, a book club program for girls. Since I started my organization, she has been a constant light and mentor to make sure I am making an impact on the world in my own unique way,” said Progressionista Founder Shanel Adams.

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

LORI GATMAITAN

AMY GOOD

Director, SAE Foundation, SAE International, Troy Education: Master of Science in Organizational Leadership, Robert Morris University

CEO, Alternatives for Girls, Detroit Education: Master of Social Work, University of Michigan

SAE Foundation raises and manages funds to support the development, growth and accessibility of the SAE International education programs and expand its award and scholarship portfolio. The organization impacts more than 110,000 students yearly and places more than 4,500 industry volunteers in classrooms and at events. As director, Lori Gatmaitan leads 15 staff members and hundreds of volunteers. She has been integral in the nonprofit acquiring 1,500 new donors, raising $14 million for expansion of programming and awards. As a result, SAE expanded its A World in Motion program into the field of cybersecurity and has received accolades and endorsements from state-level STEM groups. She also increased overall net assets by $3.2 million. A member of the Association of Fundraising Professionals and Inforum, Gatmaitan also has restructured the nonprofit’s website. She also serves on the board of the Engineering Society of Detroit. “Lori has been a strong and reliable partner to work with. She is responsive, mission-oriented and has excellent communication and relationship building skills. Her commitment to STEM education is unprecedented; she understands the challenge very well and works as a great thought partner to identify innovative solutions,” said Hina Baloch, manager of Global Social Impact and STEM Education at General Motors Company. “I have been particularly impressed by Lori’s ability to take an idea, build it and really scale it for different demographics.”

Amy Good has 32 years of experience serving children and families in Detroit. Under her direction, Alternatives for Girls has expanded from a volunteer-run organization to a staffed agency with $1.26 million in expenses that annually assists 4,000 homeless and highrisk young woman and girls and their families avoid violence, teen pregnancy and exploitation. Good has implemented numerous services and programs, including street outreach, emergency shelters and the ability for those they serve to transition from shelters to independent living. Named a Crain’s Detroit Business Best Managed Nonprofit in 2017, AFG has helped nearly 100 percent of the young women and girls it serves graduate from high school for 13 consecutive years. In 2017, 94 percent of those participating in afterschool programs remained drug-free. Earlier this year, the nonprofit held an inaugural prom night for 40 young women rescued from human trafficking and hired 20 young women through Grow Detroit’s Young Talent Program. A gubernatorial appointee since 2004, Good serves on the Michigan Committee on Juvenile Justice. She also is a member of the Goodwill Industries of Greater Detroit’s board and a member of the International Women’s Forum of Michigan. Her community service has resulted in several honors, including Oprah Winfrey’s Use Your Life award, the United Way’s Executive Director of Leadership award and University of Michigan’s Distinguished Alumni award.

ANIKA GOSS-FOSTER Executive Director, Detroit Future City, Detroit Education: Master of Social Work, University of Michigan Anika Goss-Foster is advancing sustainability in the form of triple bottom-line development in Detroit by lifting up resident voices and ensuring the city’s growth is economically strong and environmentally healthy. “Her 20 years’ experience in community development and city government positioned her well for the challenge of refining and implementing the ambitious goals of the Detroit Strategic Framework. Anika oversaw the consolidation of the highly conceptual 760page framework document into a succinct, actionable, 15-page, five-year strategic plan,” said Jodee Fishman Raines, vice president of Programs for the Fred A. and Barbara M. Erb Family Foundation. Goss-Foster developed and implemented the Land + Water Works Coalition; improved and expanded the Field Guide Mini Grants Program; and published important research, including the 139 Square Miles data report. Her report on single-family rental housing resulted in a JP Morgan Chase-funded, public-private partnership to provide quality rental and home ownership options for Detroiters. Her vacant industrial study landed a partnership with SmithGroup to convene and inform organizations to develop a strategic plan for 900 large and mid-size properties. To improve talent resources without busting Detroit Future City’s budget, Goss-Foster also developed a contractual relationship with Building Community Values, which trains Detroiters about the development industry, and with Connect Detroit’s chief development and strategy officer. “Anika is a level-headed leader and creative problem solver, who I can rely on to develop creative solutions, manage sticky situations and always balance practicality with vision,” added Fishman Raines.

JULIANA HARPER Senior Vice President and Chief Program Officer, Easterseals Michigan, Auburn Hills Education: Master of Social Work, Wayne State University

for being selected as Crain's Notable Women in Nonprofits and for making graduation possible for Detroit's young people!

Juliana Harper has the strategic vision and in-depth clinical and operational knowledge to create sustainable programs for Easterseals, which strives to change the way the world defines and sees disability. Harper is responsible for strategic initiatives related to program planning, development, and operations along with oversight of clinical programs and related staffing. She sets policy and implements best practices. In recent years, Harper modified clinical practices to support best outcomes, developed and implemented new programs, spearheaded use of interns to develop talent and built partnerships with school districts. “Juliana … has done an amazing job breaking down the walls between nonprofit agencies so that they can serve a collective good in communities. Because of her work, we have been able to provide a whole new level of mental health support in our schools,” said Shawn Ryan, superintendent of Clarkston Community Schools. Under her leadership, Easterseals recently was designated as one of Michigan’s first Certified Community Behavioral Health Clinics. As a result, it will receive an additional $4 million in funding over two years to provide behavioral health and addiction treatment services and be able to amplify services, improve outreach and expand access. Now, Easterseals serves more than 12,000 people. The grant will allow the nonprofit to serve 1,500 additional individuals. The nonprofit also received a $2.5 million grant from Substance Abuse and Mental Health Services Administration for trauma-focused infant and early childhood mental health services.

HEIDI GRIX President and CEO, Children’s Leukemia Foundation of Michigan, Farmington Hills Education: Bachelor of Arts in English, Oakland University and Elementary Teaching Certificate, Eastern Michigan University Heidi Grix leads development professionals in fundraising and event planning, oversees outreach of social workers, and is instrumental in helping strengthen the Board of Directors of the Children’s Leukemia Foundation of Michigan (CLF). “Heidi moved the CLF office from its larger and more expensive location in Troy to a smaller and less expensive location in Farmington Hills, reducing the operating expenses of the organization and … expanding its ‘giving base.’ In the short period of two years, she placed CLF in the coveted ‘Four Star’ category of Charity Navigator — the highest achievement for a charitable organization. … In short, she leads with her heart, but she has the business smarts and force of personality to pull a rabbit out of her hat when necessary,” said Claudia Rast, a shareholder at Butzel Long and Board member of Children’s Leukemia Foundation of Michigan. Under Grix’s direction, CLF has increased cash support to patient families to $110,000 from $8,000. She also developed a data-driven growth model, hired an outreach coordinator, and improved fundraising efforts. And when CLF experienced attrition of senior staff members, Grix stepped in to do the work until she rebuilt the organization’s team. “Through her numerous involvements (e.g., organizing teams for Wish-a-Mile for Make-a-Wish Foundation) and her diligent use of social media to call attention to important causes, issues, and needs, she raises awareness, builds networks, and cultivates support for these important organizations,” said Eastern Michigan University Professor Ann Blakeslee.

SHUNA HAYWARD Senior Program Director, Connect Detroit, Detroit Education: Master of Education in Human Development and Psychology-Risk and Prevention, Harvard University Shuna Hayward directs Connect Detroit’s Grow Detroit’s Young Talent program, a $10 million initiative serving more than 8,000 youth yearly. Connect Detroit President and CEO Dierk Hall calls Hayward a nonstop champion for improving community conditions for children, youth and families in and around Detroit. Hayward has helped rapidly scale Grow Detroit’s Young Talent partnerships, infrastructure and funding resources while maintaining a relatively small team. In six years, the number of participants increased to more than 8,000 from 3,000. Connect Detroit serves more than 5,000 of the 8,000 youth who take part in the overall program, She also built out the nonprofit’s technology structure to manage the number of participants and improve quality and expanded partnerships with organizations such as University of Michigan. In recent years, the YMCA of Detroit honored Hayward with the John Copeland Award for Civility and Community Service, and she earned the Michigan Afterschool Association’s Service Award. Hayward participates in several community associations, including the Honor Guard, where she helps provide scholarships to graduating students. She serves on the boards of the Michigan Afterschool Association, Wellspring, and Heritage works, where she is board chair. Hayward has a master's degree in human development and psychology from Harvard University.

Organ M opm mayo The C igan Detro islan Am a $4 the i Sept sente three sons Isle A P ident vanc nam 2006 the D H cludi Trust Scou

an,

s in ch of lping ren’s

and less g the … extwo catement eads and r hat er at euke-

cash from owth oved attrio do m. orgaouncall , she vates East.

Deative

calls mmuand

roit’s nding eam. ed to erves art in

trucd imgani-

Hayand higan

assohelps She ol Asshe

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

WENDY JACKSON

MICHELE HODGES President, Belle Isle Conservancy, Detroit Education: Bachelor of Science in Urban Planning, Michigan State University; Certificate, Institute of Organizational Management, Loyola Marymount University Michele Hodges held a variety of economic development positions prior to her 2012 gubernatorial/ mayoral appointment to the Belle Isle Conservancy. The Conservancy works in partnership with the Michigan Department of Natural Resources and the City of Detroit to bring private and public resources to the island. Among the conservancy's current projects include a $400,000 upgrade to the James Scott Fountain on the island park. That investment was announced in September, fueled by the PwC Grand Prixmiere presented by Chevrolet. The conservancy also landed a three-year, $1.7 million grant from the William Davidsons Foundation to restore and modernize the Belle Isle Aquarium. Prior to the Conservancy, Hodges served as president of the Troy Chamber, where she worked to advance the Troy Transit Center. For that role, she was named a Crain’s Detroit Business 40 Under 40 in 2006. Hodges also held a variety of positions with the Detroit Regional Chamber and City of Southfield. Hodges sits on numerous community boards, including the Detroit Symphony Orchestra Board of Trustees, Grosse Pointe Park Foundation and Girl Scouts of Southeast Michigan Advisory Board.

Managing Director, The Kresge Foundation, Troy Education: Master of Social Work, University of Michigan Wendy Jackson oversees The Kresge Foundation’s Detroit Program, which made 41 grants totaling $21.2 million in 2017 to programs that build and strengthen pathways to opportunity for low-income residents. In addition, she manages a portfolio of community grantmaking nationally. Jackson initiated Kresge Detroit’s $20 million early childhood education initiative and was instrumental in its Innovative projects, which supported 70 neighborhood development projects with $6.5 million. In September, the nonprofit announced it would provide $50 million for an educational partnership involving Detroit Public Schools, University of Michigan, Marygrove College and others. “In her decade at Kresge, Wendy Lewis Jackson has been indefatigable through every dark hour — from Kresge’s response to sustain our nonprofit sector through the financial crisis, to helping strategize our Grand Bargain commitment that brought the city out of bankruptcy, to being a key architect of our intervention when Marygrove College teetered near collapse. Our recent announcement of a new alliance to create a unique cradle-to-career educational continuum on the Marygrove campus, again, is largely a testament to her vision and tenacity,” said Kresge Foundation President and CEO Rip Rapson. Matt Cullen, chair of the Detroit Riverfront Conservancy, principal at Rock Ventures, LLC and CEO of Jack Entertainment LLC, said Jackson “intuitively balances her business acumen with her community awareness in helping to forge successful investments and partnerships.”

“COTS is successfully partnering with families to help parents navigate to self-sufficiency, and break the cycle of poverty for both themsleves and their children as they grow into adulthood.”

SAUNTEEL JENKINS

CHERYL JOHNSON

CEO, The Heat and Warmth Fund (THAW), Detroit Education: Master of Social Work, Wayne State University

Executive Director and CEO, Coalition on Temporary Shelter (COTS), Detroit Education: Bachelor of Arts in Psychology, Kalamazoo College

THAW, which distributes assistance to 250,000 Michigan households, has launched numerous programs under the leadership of Saunteel Jenkins. For instance, the organization developed iHEAL for low-income families experiencing weather-related medical problems, such as asthma, pneumonia and chronic obstructive pulmonary disorder, and for those who use medical equipment that requires electricity or natural gas. “During her relatively short tenure, she has faced significant federal and state policy changes that require the organization to shift its long-standing focus from energy crisis intervention to customer energy self-sufficiency. She has crystallized THAW’s mission and developed a long-term strategic plan that will help stabilize and empower Michigan families by keeping them healthy, safe and warm. In 2017, Ms. Jenkins navigated organizational change professionally and compassionately while providing energy assistance services to nearly 17,000 households including 28,000 children and 4,800 seniors,” said THAW Board President Mark Lichtman. Jenkins, a Governor’s Energy Excellence Awards finalist, serves on DTE Energy’s Community Advisory Council and Wayne State University’s Helping Individuals Go Higher Program Advisory Board. “Saunteel is a leader among leaders in the national energy assistance and efficiency sectors,” said Katrina Metzler, executive director of the National Energy and Utility Affordability Coalition, where Jenkins is a board member.

art

of family

Changing perceptions. Changing lives.

Cheryl Johnson encourages partnerships with social enterprises that expand the skill sets of those COTS serves while also advocating for social change. “COTS has not perished because of the vision and leadership of our CEO, Cheryl P. Johnson. This is especially true for our agency within the last five years. Where there were major changes within our traditional funding means, she was able to lead the charge for our organization and to guide us as an agency to a broader, and more empowering and impactful scope of services,” said COTS COO Sharyn Johnson. When the U.S. Department of Housing and Urban Development decreased funding for short-term housing and increased funding for long-term housing and low-income families, Johnson saw an opportunity to create sustainable impact in Detroit. She led a plan to repurpose 87 units from short-term into long-term family housing at three locations. She also directed the launch of Passport to Self-Sufficiency, an initiative that employs coaching and mentoring to end the cycle of poverty, the root cause of homelessness. Johnson also serves the community through board service with groups such as New Detroit, Warrior Women Against Poverty and Michigan’s Homeless Action Council. She also founded The Circle, a confidential, non-competitive network of African-American women.

To our CEO and Super Coach, Cheryl P. Johnson: Th Thank you for leading the way. We are proud to be part of your team and proud to be a family! With Appreciation, COTS Board of Directors and COTS Staff

- Cheryl P. Johnson, COTS CEO

the

HOPE HELP HOUSING

Give hope. Give help. Give a better future this holiday season. To support families overcoming homelessness, visit www.cotsdetroit.org

HOPE HELP HOUSING

elop-

featuring & fr frie friends ie end nds s at t the he Historic c Gem Gem an and Cent Century tur ury y Th The Theatres eatres e visit visit t cotsdetroit.org cotsde cot sdetro troit. it.org org f for or rt tick tickets ickets ets an and d iinfo nfo o

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

APRIL JONES-BOYLE

VITTORIA KATANSKI

Founder and Executive Director, Build Institute, Detroit Education: Bachelor of Arts in Anthropology, Wayne State University

Executive Director, Hatch Detroit; Director, Tour de Troit, Detroit Education: Bachelor of Arts in Political Science and French, Indiana University

D:hive co-founder April JonesBoyle founded the Build Institute seven years ago to be a small business incubator and champion of Detroit talent. The organization started with a $150,000 budget. Since then, the organization has educated a diverse group of about 1,500 Detroit-based entrepreneurs who have created 973 jobs and generated $30.8 million in new income. Now Build Institute operates on a $1 million budget. Sister Pie and Detroit Vegan Soul are among the Build Institute alumni. “Beyond job creation, these business owners are contributing to their local communities and neighborhoods … by activating long-dormant spaces, which in turn creates safe, vibrant spaces and restores our municipal tax base,” said Rachele Downs, founder of Downs Diversity Initiatives LLC. Jones-Boyle is overseeing the launch of The Corner in Corktown, an entrepreneurship hub to offer classrooms, co-working space and a retail pop-up space. “Through the Build Institute, April started training Detroit-based, women-owned and minority-owned entities at a time when other organizations were not looking to provide similar opportunities. She is fiercely determined to make a difference for women who are invisible to many in the business world. She is an integral, foundational part of the entrepreneurial ecosystem,” said Carla Walker-Miller, founder and CEO of Walker-Miller Energy Services. Jones-Boyle, who also is a partner in Detroit’s Gold Cash Gold restaurant, earned the 2018 Tough Enough to be a Girl Scout award from the Girl Scouts.

Since Vittoria Katanski helped found Tour de Troit in 2002, the organization has raised more than $360,000 toward the development of non-motorized infrastructure for running and bicycling, such as the Southwest Detroit Greenlink and a wayfinding system for the City of Detroit. Tour de Troit, which produces and supports healthy lifestyle events, has expanded to six events. About 6,000 riders participated in this year’s Tour de Troit ride from Corktown through northwest Detroit. “Year after year, countless participants have not only experienced great events, they’ve experienced Detroit differently. Events like Tour de Troit have played a major role in rebranding Detroit as a welcoming city for cycling,” said Todd Scott, executive director of Detroit Greenways Coalition. In 2012, a year after Hatch Detroit launched to encourage and support entrepreneurship in Detroit, Katanski became executive director while maintaining her role with Tour de Troit. Hatch has named eight $50,000 winners, and 34 participant businesses have opened in the region. In addition, 11 other businesses are in various stages of launching. “There are dozens of small businesses currently open throughout Detroit’s neighborhoods that owe a monumental debt of gratitude to her incredible passion for small businesses and the essential role they play in community development,” said Hatch Detroit Founder and Chairman Nicholas Gorga.

BIRGIT KLOHS President and CEO, The Right Place, Grand Rapids Education: Bachelor of Business Administration, Western Michigan University Under the 31-year leadership of Birgit Klohs, The Right Place, a regional economic development organization in Grand Rapids, has created more than 44,000 new and retained jobs and spurred more than $4.7 billion in new investment. Klohs is known as a leading economic development strategist, collaborating with local, state and national organizations on critical issues related to economic development. A native of Germany, she travels to Europe, Asia and the Middle East on investment missions each year. In 2014 Klohs was appointed by Gov. Rick Snyder to serve on the International Crossing Authority, a joint authority between the state of Michigan and Canada on construction of the North American International Trade Crossing. Her economic development career began with the Berrien County Economic Development Corp. and continued with the Michigan Department of Commerce. She also worked as assistant director of the office of economic development at Grand Valley State University. Klohs was named a Crain’s Detroit Business 100 Most Influential Women in 2016. She is past chair of the Western Michigan University Board of Trustees and is a current member of the Grand Rapids Area Chamber Board of Directors.

KATE KOHN-PARROTT President and CEO, Greater Detroit Area Health Council, Inc., Bingham Farms Education: Master of Business Administration, University of Detroit Mercy Kate Kohn-Parrott has the ability to think strategically and operationally to make difficult decisions and improve services. She is a shining example of what it takes to lead nonprofit efforts regionally and influence nationally, said Ellen Gagnon, interim CEO of Network for Regional Healthcare Improvement (NRHI). Kohn-Parrott serves as NRHI’s treasurer and a member of the Executive, Governance and Strategic Planning Committees. She also serves as a member of the Wayne State University College of Nursing Board of Visitors and the Board of Directors for Develop Detroit. As president and CEO of Greater Detroit Area Health Council (GDAHC), a collaborative association for health systems, employers, labor unions, physicians, social services and government organizations, Kohn-Parrott has streamlined operations and saved the nonprofit more than $200,000. In 2015, when the nonprofit’s primary source of funding dried up, she worked with the board and staff to revise mission, values and strategies and expand GDAHC’s focus to a broader portfolio. When the United Way of Southea0stern Michigan discontinued its multi-organization pension plan, the guaranty organization required a $1 million payment from GDAHC. However, after providing considerable documentation, Kohn-Parrott proved GDAHC did not have the ability to pay the required amount and was able to eliminate the payment altogether and start fresh.

PROVEN IMPACT. Congratulations to Lynette Dowler, President of the DTE Energy Foundation, for being named among the Crain’s Detroit “Most Notable Women in Non-Profit.” As a passionate mentor for young people and an advocate for women, the honor is well deserved, and we’re proud to have her on our team.

Foundation

heim distre Si from peop natio strea socia repo “J afrai if it m ple. want staff presi tion Le Supp tion disab dem nect with comm Le men Coal

ente stron those “A over … Th cham carry ing i scap Spor tal Im Lu forts $63 mixe leads opm nual Si Luthe velop estat tion, gram hous displ Su Luthe Impa Affor pact creat ing u

oit m

roit

tegisions

lead nally, Re-

memPlanf the rd of troit. Area ation hysiions, aved

ce of staff pand

higan , the ment rable d not was start

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

JENNIFER LEPARD President and CEO, Alzheimer’s Association - Greater Michigan Chapter, Southfield Education: Master of Public Administration, University of Michigan Jennifer Lepard transformed Alzheimer’s Association from an organization in financial distress to one with yearly surplus. Since 2013, she increased the agency’s budget from $1 million to $28 million and its staff to 200 people. She also led the nonprofit’s merger with the national Alzheimer’s organization and effectively streamlined data tracking of the populations the association serves, which improved grant procurement, reporting and budget management. “Jennifer addresses challenges head-on and is not afraid to take risks or try something new or different if it means allowing our mission to reach more people. She provides a clear direction of where she wants to see the agency go while empowering her staff to chart how to get there,” said Kristin Rossi, vice president of development at the Alzheimer’s Association - Greater Michigan Chapter. Lepard spearheaded the Dementia and Disability Support Services Program that offers training, education and consultation for those with developmental disabilities and dementia or are at risk of developing dementia. She also launched the Community Connect social engagement program to ensure people with dementia and their loved ones remain part of community activities. Lepard serves on the boards of Rethinking Dementia, Accelerating Change and Michigan Dementia Coalition.

PAMELA LEWIS Director, New Economic Initiative, Detroit Education: Master of Business Administration, Spring Arbor University Pamela Lewis joined the New Economy Initiative in 2011 as senior program officer and became director in 2016. NEI is a $159 million philanthropic collaboration working to build and sustain an inclusive network of support for entrepreneurs in Southeast Michigan. It is one of the country’s largest such collaborations. Among its initiatives is the NEIdeas Small Business Challenge, which awarded $260,000 in grants in November to small but growing businesses in Detroit, Hamtramck and Highland Park. The program has granted $2.16 million to 144 businesses since its inception. An engineer by training with a degree from Michigan State University, Lewis has more than 20 years of experience in process improvement and program management, including roles with the Ewing Marion Kauffman Foundation and NextEnergy. Lewis joined NEI in 2011 as a senior program officer from the Kauffman Foundation where she oversaw national entrepreneurial programs as a member of its Detroit team. At Kauffman, she led an NEI-funded program to create hundreds of small businesses through training programs at Detroit's TechTown. Lewis began her career at DTE Energy, where she spent 15 years in roles ranging from analyst to manager of process management. Lewis was named one of Crain’s Detroit Business 100 Most Influential Women in 2016.

ELIZABETH LUTHER

KRISTINA MARSHALL

Detroit Program Manager, Capital Impact Partners, Detroit Education: Master of Urban Planning, University of Michigan

President and CEO, Winning Futures, Warren Education: Master of Education in Leadership, Oakland University

Elizabeth Luther is a detail-oriented expert in her field who builds and maintains strong relationships with community partners and those Capital Impact Partners supports. “A tremendous amount of change has occurred over the past couple years at Capital Impact Partners. … Through it all, Elizabeth has been an amazing champion for Capital Impact’s efforts in Detroit — carrying forward the work while simultaneously shaping it to meet the needs of the ever-changing landscape and communities that we serve,” said Scott Sporte, chief strategy and innovation officer at Capital Impact Partners. Luther directs programs, research and policy efforts. She also manages investor relationships for $63 million in loan funds supporting multifamily, mixed use and affordable housing development and leads internal operations, grant and contract development and management within a $1.5 million annual budget. Since joining the organization nearly six years ago, Luther helped design and launch the Equitable Development Initiative to ensure Detroit’s pool of real estate developers reflect the city’s diversity. In addition, she co-designed the pilot Stay Midtown program, in partnership with Midtown Detroit Inc., for housing interventions for Midtown residents at risk of displacement. Supporting affordable housing outside of Detroit, Luther also led a winning proposal, making Capital Impact a fund manager for the new Washington, D.C. Affordable Housing Preservation Fund. Capital Impact is leveraging a $5 million district investment to create $20 million to preserve 300 affordable housing units within the fund’s first year.

Kristina Marshall has made Winning Futures her life’s mission. The first student mentee in 1994, she joined the nonprofit in 1998 as a program director and rose through the ranks to her current position. Winning Futures, which empowers metro Detroit youth through mentorship, workforce preparation and scholarships, has served more than 47,000 students and awarded more than $1.8 million in scholarships. To run the nonprofit more efficiently, she implemented a strategic planning and growth process, invested in the personal and professional development of each member of Winning Futures, streamlined the mentoring curriculum, restructured corporate sponsorship opportunities and converted the board to a fundraising group rather than an advisory group. The latter increased fundraising to $650,000 in 2017 from $30,000 in 2010. Now Marshall is expanding the Winning Futures program from one to four years to support students post-high school and better prepare them for the workforce. “Kris has evolved Winning Futures into becoming a top-rated organization. It became the first program in Michigan to earn the National Quality Member designation from Mentor: The National Mentoring Partnership. Kris is recognized by peers throughout the country as a great leader in the field,” said Ginna Holmes, executive director, Michigan Community Service Commission. A past Crain’s 40 Under 40 honoree, Marshall is a member of Comerica Bank’s Michigan Community Development Advisory Council.

JENNIFER LITOMISKY Executive Director, Ronald McDonald House Charities Detroit, Detroit Education: Master of Nonprofit Management, University of the Rockies Under Jennifer Litomisky’s direction, Ronald McDonald House of Detroit more than doubled to 26 bedrooms from 12. The nonprofit provides a home away from home for 1,500 families of children receiving care at area hospitals every year. In 2013, she spearheaded a $3 million expansion campaign to build and open the new 26,000-squarefoot RMHC Detroit. Four years later, she led a $2 million campaign to expand its reach to more families. Litomisky also has championed the use of technology in fundraising. Since implementing the organization’s online fundraising platform, Ronald McDonald House has raised an additional $60,000. Lori Mouton, group marketing director for the Detroit Medical Center, said Litomisky “is a powerful force who does her very best to ensure the highest level of comfort and support for everyone served by RMHC Detroit.” When donations decreased, Litomisky encouraged board members to step up, created two new positions and conceived of new ways to boost attendance at events. As a result, RMHC Detroit has been a threetime finalist for Crain’s Best Managed Nonprofits. “Jennifer … pushes her staff to do everything they can to help the families served by RMHC Detroit and encourages personal growth and education everywhere she can,” said Jenna Greenman, principal at Kitch Attorneys & Counselors and president of RMHC Detroit Board of Directors.

KATY LOCKER Program Director, John S. and James L. Knight Foundation, Detroit Education: Juris Doctor, University of Michigan Prior to joining the Knight Foundation in Detroit, Katy Locker, a former Crain’s Detroit Business 40 Under 40 honoree, spent 10 years helping revive the city as a grant maker, policy adviser and attorney. Under Locker’s local direction, Knight Foundation has been injecting millions in Detroit. The nonprofit began donating $1.5 million to support the Strategic Neighborhood Fund, a partnership between the city of Detroit and Invest Detroit in 2017. In February, the nonprofit made a $1.5 million grant to CitizenDetroit to help residents get the information and access needed to influence civic decision-making and become civically active. And in October, the nonprofit announced it would invest $20 million to area arts organizations. And last year, Knight Foundation committed $1.8 million to the city’s nonprofit media outlets, including WDET-FM, Detroit Public Television and Michigan Radio. Previously, Locker was program director of the Hudson-Webber Foundation, where she managed grants, specifically those aiming to get 15,000 young people working, playing and living in Downtown Detroit. A graduate of Cornell University and the University of Michigan Law School, Locker practiced redevelopment and public law in California and served the Judicial Council of California as a policy analyst

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

S10

PATRICIA MOORADIAN President, The Henry Ford, Dearborn Education: Bachelor of Fine Arts, Texas Christian University Using her entrepreneurial management style, Patricia Mooradian has challenged the idea of what an American history museum can be. Mooradian played a key role in the rebranding of Henry Ford Museum and Greenfield Village as The Henry Ford, America’s Greatest History Attraction. For that work, she was named among Crain’s Detroit Business Most Influential Women in 2007. The multi-million dollar plan included a new master plan for the museum; the design and implementation of the Ford Rouge Factory tour, which includes 3D technology; and development of “Innovation Nation,” a syndicated TV program hosted by Mo Rocca. Mooradian leads 1,800 employees and oversees The Henry Ford’s strategic direction and overall campus. She has also led the institution in developing a proprietary digital and educatio nal platform that is being used to assist teachers and schools in developing curriculum products. Mooradian joined The Henry Ford in 2000 as COO from The Taubman Co., where she was director of regional marketing. She serves on the Board of Trustees of Central Michigan University and the boards of National Arts Strategies and Detroit Metro Convention and Visitors Bureau, among others.

“Donna (MurrayBrown) took a powerhouse organization in MNA and has made it even stronger.” Tim Delaney, president and CEO, National Council of Nonprofits

“Deborah is not only an impressive nonprofit executive but a social innovator who impacts other nonprofits.” Jim Vella, president of Ford Motor Company Fund and Community Services, on Deborah Parizek

CONGRATULATIONS, LYNN ALEXANDER!

2018 NOTABLE WOMEN IN NONPROFITS IN MICHIGAN

www.pvm.org | (248) 281-2020

DONNA MURRAY-BROWN

FAYE ALEXANDER NELSON

President and CEO, Michigan Nonprofit Association, Lansing Education: Bachelor of Business Administration, Central State University

Director of Michigan Programs, W.K. Kellogg Foundation, Detroit Education: Juris Doctor, University of Detroit

Donna Murray-Brown isn’t afraid of change. Since her promotion to president and CEO of Michigan Nonprofit Association five years ago, she has restructured programming along with the composition of the board and staff. She reduced the size of the board of directors from 41 members to 21 members and changed the mindset to empower members to be more engaged with organizational oversight. She also reduced staff to 19 from 42 and, working collaboratively with the board, created an innovation fund for staff to develop and test new ways of working and problem-solving. In addition, Murray-Brown eliminated programs that were no longer financially stable or relevant to the sector and developed strategic partnerships with the National Council of Nonprofits, Points of Light Foundation and Independent Sector to leverage national resources and improve access for Michigan nonprofits. Her vision and efficiency have resulted in recent honors, including those from Nonprofit Times’ Power and Influence Top 50. “Donna took a powerhouse organization in MNA and has made it even stronger. Her leadership has placed Michigan at the forefront of efforts to ensure a fair, accurate and complete count in the 2020 Census and ensuring that diversity, inclusion and equity are core to nonprofit missions. Since joining our board in 2015, her expertise and inspiration have helped move our organization, our network and the nonprofit community forward,” said Tim Delaney, president and CEO of the National Council of Nonprofits.

MARIAM NOLAND President, Community Foundation for Southeast Michigan, Detroit Education: Master of Education, Harvard University Since Mariam Noland became founding president of the Community Foundation in 1985, the foundation has grown to $1 billion. So far, it has distributed more than $1 billion through 62,000 grants to nonprofit organizations in seven Michigan counties. Noland was one of the key people in gathering support from community leaders for the “Grand Bargain,” a more than $800 million collaboration that helped Detroit exit bankruptcy. The Community Foundation was selected to administer the hundreds of millions of dollars committed by a team of foundations to shore up the pension funds for city workers. Under Noland's leadership, other major initiatives of the Community Foundation have included the New Economy Initiative, Healthy Food Connect, the Detroit Journalism Engagement Fund, the GreenWays Initiative and the Detroit Neighborhood Fund. She serves on the boards of trustees of the John S. and James L. Knight Foundation, Independent Sector, Detroit Riverfront Conservancy and Downtown Detroit Partnership. Her community work earned her the Eleanor Josaitis Unsung Hero Award and recognition as a Michiganian of the Year by The Detroit News, which referred to Noland as the "ultimate problem solver." Noland has been recognized by Crain's multiple times as one of Michigan's Most Influential Women.

Faye Alexander Nelson’s reputation for effectively working with nonprofits, corporations and high-level development projects is one reason she was named as director of Michigan Programs at W.K. Kellogg Foundation. Since August, she has been leading the foundation’s grantmaking priorities in Michigan to help ensure children have opportunities to thrive in equitable communities. Nelson has received numerous honors throughout her career, including Crain’s Detroit Business 100 Most Influential Women, the Walsh College Jeffery Barry Education Excellence & Community Service Award, the Damon J. Keith 24th Annual Soul and Spirit Humanitarian Award, the Grio’s 100 African American History Makers award presented by NBC News, and the Milliken Distinguished Service Award from the Michigan Environmental Council. Neslon served as the 2017-18 Sojourner Truth Fellow at the University of Michigan Taubman College of Architecture and Urban Planning. Prior, she was vice president of DTE Energy and president and board chair of the DTE Energy Foundation. She co-led the restructuring of the philanthropic arm of the company and directed annual grantmaking to more than 400 nonprofits throughout Michigan. Before DTE, she was the first president and CEO of the Detroit Riverfront Conservancy, overseeing the restoration and transformation of the Detroit riverfront from an abandoned industrial waterfront into a vibrant public space. Nelson serves on the Detroit Symphony Orchestra, Henry Ford Health System and Health Network boards.

being tra in Sh cian orche strike deve U et sa more ance surpl webc ers w In to to 16 y Leag Detro Pr agem zatio Bowl and D.C. al A Sour Easte

DEBORAH PARIZEK Executive Director, Henry Ford Learning Institute, Dearborn Education: Master of Arts in Education and Master of Arts in Chinese Language and Literature, University of Michigan Deborah Parizek is a design-oriented and inclusive leader who leads by example. As founding executive director of the Henry Ford Learning Institute, launched by The Henry Ford and Ford Motor Company Fund, Parizek implements workshops and programming that empower learners to lead transformation in, with and for their communities. Over the past three years alone, HFLI has served more than 10,000 children, youths and adults. Parizek is responsible for raising funds and in-kind support to secure long-term sustainability. Her work has resulted in four new schools opening in Detroit, San Antonio and Chicago that serve as models for public school partnerships with higher educational institutions and community organizations. She also implemented programming for educators globally that, in turn, increased revenue. Parizek’s recent initiatives include workplace learning programs that help employees use tools, methods and approaches from design thinking. “Deborah is not only an impressive nonprofit executive but a social innovator who impacts other nonprofits. Through her strategic leadership and thoughtful approach, HFLI has developed a model for designing responses to complex community challenges that will enable Ford Fund to invest in, and partner with, our nonprofit grantees in a way that creates transformational, long-lasting change in, with, and for communities,” said Jim Vella, president of Ford Motor Company Fund and Community Services.

ties a & CE Mich “W has h nonp lead Sm tion’s sition organ vent Sh ters Preve risk chan more 15,7 U grant lion prog In earn Asso “B helpi comp proje form

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

ANNE PARSONS

W.K.

President and CEO, Detroit Symphony Orchestra, Detroit Education: Bachelor of Arts, Smith College

ty of

putawith ment or of

ndap entable

hout 100 ffery rvice and rican NBC ward

Truth llege was and o-led comthan , she Riverand banublic

Strategist and relationship builder Anne Parsons has experienced several big wins since being named leader of the Detroit Symphony Orchestra in 2004. She secured Leonard Slatkin, a renowned musician and conductor, as music director and led the orchestra through a turbulent, nearly season-long strike. Since then, she has worked with the board to develop a culture of diversity and inclusion. Under her leadership, the DSO has increased ticket sales and developed ticket programs to attract more diverse audiences, doubled its donor base, balanced its budget leading to six consecutive operating surpluses, and launched Live from Orchestra Hall webcasts which draw hundreds of thousands of viewers worldwide. In 2017, the DSO raised enough financial support to tour Japan and China, its first international tour in 16 years. Parsons also was integral to bringing the League of American Orchestra annual conference to Detroit. Prior to joining the DSO, Parsons served in management positions for a variety of major arts organizations, including New York City Ballet, the Hollywood Bowl in Los Angeles, the Boston Symphony Orchestra, and the National Symphony Orchestra in Washington, D.C. She was a founding board member of the Cultural Alliance of Southeast Michigan (now CultureSource) and serves on the boards of New Detroit and Eastern Market.

estra, work

usive

Ford and workrs to munierved

-kind work troit, s for ional also bally

place ools,

execnonughtl for engrtner eates d for Motor

LINDA SMITHWHEELOCK President and CEO, National Kidney Foundation of Michigan, Ann Arbor Education: Master of Business Administration, Madonna University Linda Smith-Wheelock has a knack for recognizing opportunities and acting on them, said Dan Carney, president & CEO emeritus of the National Kidney Foundation of Michigan. “With this and an outside-the-box mindset, she has helped lead NKFM to be one of America’s leading nonprofit organizations, dedicated to helping people lead healthier lives,” he said. Smith-Wheelock led redevelopment of the foundation’s purpose, vision and guiding principles and positioned it not just as a kidney disease management organization but as one that helps those at risk prevent the disease as well. She was key to NKFM’s partnership with the Centers for Disease Control and Prevention’s Diabetes Prevention Program, an initiative that helps those at risk for kidney disease learn how to make lifestyle changes and stick with them. NKFM has since served more than 1,550 people who have lost more than 15,700 pounds. Under her direction, NKFM also created a grant-writing team that now generates about $4 million in annual revenue in support of the nonprofit’s programs and services. In 2015, Smith-Wheelock, along with Carney, earned the Presidential Merit Award from Michigan Association of Health Plans. “By encouraging everyone to be healthier, they are helping lower health-care costs in our state, and our companies are proud to partner with them on many projects aimed at improving health outcomes,” said former MAHP executive director Rick Murdock.

THERESE

QUATTROCIOCCHI-

LONGE

Director, Corporate & Foundation Relations and Senior Program Officer, Children’s Hospital of Michigan Foundation, Detroit Education: Master of Science of Biology, Oakland University A former research scientist, Therese Quattrociocchi-Longe brings a unique perspective to the Children’s Hospital of Michigan Foundation. She was integral in the process of helping the foundation become independent of Children’s Hospital and assisted in developing a robust grant award process. She also was part of a team to identify three pillars of the nonprofit’s fundraising and grantmaking efforts. Those include pediatric research, community benefit and medical education. In addition, Quattrociocchi-Longe was key to ascertaining the foundation’s current focus on nutritional wellness, injury prevention, abuse and neglect, mental health and oncology and cardiology research. “I admire Therese’s passion for and dedication to the mission of the Children’s Hospital of Michigan Foundation, as well as her research background and attention to detail. Particularly in the complex field of behavioral health, the foundation and the Grants Committee has come to rely on her expertise and insights to help guide our work,” said Terry Gardner, COO of the Michigan Health Endowment Fund. With direction from Quattrociocchi-Longe, the foundation has met or exceeded fundraising goals by raising $1.8 million to $3.6 million each year and distributed $48 million to positivively impact the health of children and families. In addition to her work with the foundation, Quattrociocchi-Longe is a member of the Michigan Association for Healthcare Philanthropy and the Council of Michigan Foundations and chair of the Birmingham Parks and Recreation Board.

OLGA STELLA Executive Director, Design Core Detroit, Detroit Education: Master of Public Policy, University of Michigan Design Core Detroit, a partnership between Business Leaders for Michigan and the College for Creative Studies, helps design-driven businesses start and grow in the city. Olga Stella, who serves as an advisor to Mayor Duggan’s office, the Detroit Economic Growth Corp. and others, creates partnerships, collaborations and connections that further its mission. Since she joined the organization fewer than three years ago, her team successfully applied for UNESCO City of Design designation, making Detroit the first U.S. city to receive it. The organization has awarded more than $140,000 to tech startup businesses for design services; provided $60,000 to support new projects and collaborations and developed more than 20 workshops, such as Client Services Boot Camp, Apple Skill Series, Designing your Startup and Co. Starter, for designers in partnership with Build Institute. “She and her superb team have built programs to strengthen and grow design businesses and increase demand for their services, transformed the one-week Detroit Design Festival into the Detroit Month of Design to better highlight the impact of design and tell Detroit’s design story, and produced a 10-year strategy for Detroit’s UNESCO City of Design initiative that uses inclusive design methods to generate inclusive economic growth in the City. She is helping us all to understand how design can shape a more equitable, sustainable, and compassionate society,” said Sabrina Keeley, COO of Business Leaders for Michigan and Richard Rogers, president of College for Creative Studies.

S11

TRACY RIVARD

NICOLE SHERARDFREEMAN

Chief Development Officer, Eastern Market Corp., Detroit Education: Bachelor of Science in Marketing and Communications, Western Michigan University Tracy Rivard’s talent for creating a sustainable, full-scale funding department — including Corporate Partners, Major Donors and an Annual Signature event — at Eastern Market earned her a promotion to chief development officer earlier this year. Eastern Market Corp. manages operations, fortifies food as a pillar of economic growth, improves fresh food access and provides programs for a healthier Detroit. Rivard learned that 90 percent of Eastern Market’s shoppers were unaware the market is run by a nonprofit on behalf of the city of Detroit. So, she worked with young community leaders to form a Cultivation Committee that raises awareness and funds by hosting quarterly pop-up dinners. Since 2013, Rivard raised capital to complete the renovation of Shed 5 and reimagined the Friends of Eastern Market Program. She also cultivates mutually beneficial relationships. For instance, she partnered the nonprofit with Henry Ford College to offer culinary education and cooking classes at the market, which, in turn, provides experience for Henry Ford students. “Tracy’s … an authentic relationship builder for Eastern Market and works tirelessly to help grow the organization. Under her leadership, fundraising has grown exponentially and consistently exceeded expectations. People in Detroit are healthier, wealthier and happier because of her efforts,” said Drew Patrick, president of Skidmore Studio and treasurer of Eastern Market Board of Directors.

President and CEO, Detroit Employment Solutions Corp., Detroit Education: Master of Arts in Organization Management and Development, Fielding Graduate

University Nicole Sherard-Freeman beat out 300 national candidates when she was appointed president and CEO of Detroit Employment Solutions Corp. in 2016. The expertise Sherard-Freeman showed in strategy, policy and leadership development over 30 years at GamePlans LLC, the Droste Group Inc. and the Corporation for a Skilled Workforce convinced board members she would successfully build a Detroit talent pipeline that could support increasing workforce demands. She is responsible for leading the strategy and operations of the City’s workforce agency, the lead implementation partner for Detroit at Work and the home of Grow Detroit’s Young Talent employment initiative. She is known as an advocate and agent for the city’s poverty-reduction strategies. She serves on the boards of Schoolcraft College Foundation and Detroit Economic Growth Corp., on the advisory board for the University of Michigan – Youth Policy Lab and is co-vice chair the Workforce Intelligence Network. Sherard-Freeman has vast experience in the workforce space, Calvin Sharp, former executive vice president of human resources for Penske Automotive Group and a DESC board member who led the president and CEO search, said at the time of her hiring. He said her expertise in strategy, policy, and leadership development set her apart in a national pool of candidates, he said.

Congratulations Birgit Klohs for being selected as one of Michigan’s Notable Women in Nonprofits!

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

S12

LA JUNE MONTGOMERY TABRON President and CEO, W.K. Kellogg Foundation, Battle Creek Education: Master of Business Administration, Accounting, Northwestern University La June Montgomery Tabron began her career at Kellogg Foundation as financial controller in 1987. Her role as “co-architect” of the organization’s strategy led to her eventual promotion to president and CEO. A native Detroiter with nine siblings, she doesn’t shy away from conversations about education and racial segregation in Michigan and has played a key leadership role in the foundation’s racial equity, diversity and inclusion work for more than two decades. In May, Kellogg, in partnership with Altarum Institute, released a study revealing that Michigan could benefit from a $92 billion gain if racial disparities in health, education, incarceration and employment were eliminated. Under Tabron’s direction, Kellogg in 2017 made a $51 million commitment to Battle Creek to supplement eroding school funding and provide students with greater opportunities. The foundation committed $3.5 million to the Detroit Promise scholarship program to help Detroit students attend college and is partnering with Kresge Foundation in the $50 million Hope Starts Here program, a 10-year early childhood initiative to promote healthy, school-prepared children. Tabron serves on the Detroit Workforce Development Board, the alumni association of the University of Michigan Board and is a member of the Kalamazoo Chapter of The Links, Incorporated.

MAGGIE VARNEY

ALISON VAUGHN

MELISSA WEISSE

Founder and CEO, Maggie’s Wigs 4 Kids of Michigan, St. Clair Shores Education: Associate’s in Business, Macomb College

CEO and Founder, Jackets for Jobs, Detroit Education: Bachelor of Science, Michigan State University

Chief Philanthropy Officer, Leader Dogs for the Blind, Rochester Hills Education: Master of Art History, University of Glasgow

Maggie Varney started as a cosmetologist and began volunteering as a teacher of the American Cancer Society’s Look Good Feel Better program to adult cancer patients. After meeting a teenager whose wig was inappropriate for her age, she started Wigs 4 Kids. Since then, the organization, which now has more than 400 volunteers, has provided more than 4,000 children with wigs and emotional support services through its Wellness Center and trains other licensed cosmetologists to provide and service wigs for children in need. This past summer, W4K broke ground on a 6,400-square-foot facility. An advocate for children, Varney has been working with legislators to introduce “wig bills” that would encourage insurance companies to cover the cost of wigs for children as they would for other prosthetics. “Our schools all across the nation have been donating to Wigs 4 Kids to help provide scholarship opportunities for hairdressers all around the country to learn the art of making wigs. As Maggie knows, one is too small in number to achieve greatness. Without Maggie, the dreams of our students on learning how to make wigs to change people’s lives would have never happened,” said Tina Black, a member of the Andrew Gomez Dream Foundation Board and the dean and owner of several Paul Mitchell cosmetology schools and local salons. Wigs for Kids has earned three consecutive Platinum Awards through GuideStar, and Great Nonprofits has awarded the organization its Top-Rated Nonprofit Award six consecutive years.

Congratulations

A graduate of the Goldman Sachs 10,000 Small Businesses program, Alison Vaughn founded Jackets for Jobs 18 years ago to provide support to individuals who cannot get jobs because they cannot afford appropriate career clothing for interviews or work. “Alison Vaughn understands what it takes to be successful. She leads by example, committed to empowering people across the globe to look and feel their best,” said Camille Walker Banks, executive director of Detroit’s Goldman Sachs 10K Small Businesses program. Since opening, Vaughn’s nonprofit has collaborated with about 40 agencies in Metro Detroit and distributed more than 220,000 items of business attire to more than 26,000 job seekers. The Jackets for Jobs partnerships with T.J. Maxx and Quicken Loans allows the nonprofit to provide a variety of programs— including building self-esteem, professionalism, dressing for success, starting businesses, how to tie a tie and more. Jackets for Jobs also provides etiquette, resume assistance and career skills training. Vaughn, a member of the National Association of Nonprofit Associations’ executive Board of Governors, has garnered numerous awards and honors, including the Martha Stewart Dreamer into Doers award and the Top 10 Michigan Business Award from the National Association of Women Business Owners. Earlier this year, she was part of the Michigan Association of Female Entrepreneurs delegation that traveled to Dubai for the Global Business Women’s Summit.

Melissa Weisse’s greatest strength is her ability to make people feel valued, appreciated and understood. A Certified Fundraising Executive, she leads national fundraising efforts for Leader Dogs for the Blind, an 80-year-old nonprofit that has served more than 16,000 blind, visually impaired or deaf-blind clients around the world. She developed the nonprofit’s first strategic plan for seeking grants and restructured the philanthropy department. When the nonprofit sought to increase compensation for guide dog mobility instructors and apprentices, she stepped up and increased fundraising to compensate for the increased annual budget. Under her supervision, her team raised $14.5 million to redesign and renovate the kennel into a full-service canine-development center. She has raised about $114 million during her 15-year tenure and enhanced online giving opportunities. Weisse serves on the Development Committee of the American Foundation for the Blind and the Board of Directors for the Association of Fundraising Professionals Greater Detroit chapter. This year, she became District D Director of AFP International where she serves on the Women’s Impact Initiative Committee. “There are few role models and mentors as talented as Melissa Weisse. Her commitment to the mission she serves and strong conviction she brings to philanthropy and fundraising are unsurpassed,” said Brad McKenna, corporate citizenship manager for Robert Bosch, North America.

has p in De Stud aroun tors a W after tion, with the le arshi danc teach film. Ev Detro has a ence ages clude ate a Th allow Holly ticipa gram “D impa them and zens. leade at Ho

WKKF President and CEO

La June Montgomery Tabron and Director, Michigan Programs

Faye Alexander Nelson Recognized as

2018 Notable Women in Nonprofits By Crain’s Detroit Business

Both exude leadership, commitment and care in their work on behalf of children.

CONGRATULATIONS JUDITH WOLLACK Wolverine Human Services congratulates Judith Wollack, Chief Executive Officer, on her selection as a Notable Woman in Nonprofits by Crain’s Detroit Business. We are proud of your accomplishments and honored to have your leadership in our organization. Wolverine Human Services is the largest child welfare agency providing the full continuum of care to children and families in Michigan.

educ ing fi W expo cal th profe the M child ing to child tutori In Math plorin no c local teach eling W the D partn mero in 20 Ea reade Read Achie Mich “J advo cal o extra coun comm Jame

r ls

atest make ated

nathe more blind proftruc-

nsanticg to

milto a has nure

ee of oard ofesame she tee. lentmisgs to said r for

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

DEBRA WHITEHUNT Artistic Director and Co-Founder, Detroit-Windsor Dance Academy, Detroit Education: Master of Education, Wayne State University Detroit-Windsor Dance Academy has positively impacted more than 15,000 students in Debra White-Hunt’s 35 years as artistic director. Student alumni have opened seven dance studios around the country and 11 of her current 12 instructors also are alumni. White-Hunt began learning dance at age 10 and, after earning a bachelor’s degree in Theatre Education, won a scholarship to study during her summers with the Dance Theatre of Harlem. After graduation, the legendary Alvin Ailey presented her with a scholarship to study with Alvin Ailey School. She has danced all over the world and been commissioned to teach, choreograph and dance on stage, video and film. Eventually, she returned home to Detroit to open Detroit-Windsor Dance Academy. The school, which has adult staff and youth mentors, teaches art, science, dance and life skills to some 300 students, ages 2 to 75, every week. Additional programs include pairing professional and novice artists to create artworks and pop-up community dance classes. The school also has established a program that allows some of the academy’s dancers to travel to Hollywood to train at Debbie Allen Studios and participate in a four-tiered pre-professional dance program. “Debra White-Hunt is a woman who has positively impacted the lives of thousands of children, exposing them to dance while instilling within them integrity and responsibility, producing productive global citizens. She is an awesome role model and tremendous leader,” said Linda Thompson, a professor of nutrition at Howard University.

JILL WOODWARD Director, MSU Community Music School-Detroit, Detroit Education: Bachelor of Arts English, Art History and Arts Management, Boston University MSU Community Music School-Detroit provides quality education to all age groups, subsidizing and providing financial aid to learners in need. With Jill Woodward at the helm, CMSD has grown exponentially, last year developing programs in musical therapy, literacy, songwriting, inclusivity, diversity, professionalism and more to nearly 1,800 people at the MSU Detroit Center, at homeless shelters and in children’s hospitals. She consistently looks for funding to broaden the scope of programs, most of them children, that CMSD serves. She hopes to add math tutoring and a homework help room to the mix. In recent years, she partnered with the Marshal Mathers Foundation and Carhartt to launch the Exploring Literacy through Lyrics and Song Program at no cost to local children. Some children walk from local homeless shelters to participate. Moreover, the teacher-to-student ratio is 1:5, increasing role modeling opportunities between the adults and children. Woodward, a former communications director for the Detroit Symphony Orchestra, was key to CMSD partnering with 10 foundations, six corporations, numerous individuals and one government organization in 2018 alone. Earlier this year, Woodward, who volunteers as a reader with the Detroit Public Schools Volunteer Reading Corps, earned the Excellent Progress Toward Achieving Diversity and Pluralism Award from the Michigan State University College of Music. “Jill Woodward has been a tireless and successful advocate for sequential music education and musical outreach throughout the city of Detroit. She is an extraordinary nonprofit leader who has changed countless lives through her vision, hard work and commitment to the young people of Detroit,” said James Forger, dean of MSU’s College of Music.

BARBARA WILLIS

KELLY WINN

COO, Detroit Rescue Missions Ministries, Detroit Education: Master of Arts in Inner City Studies, Northeastern Illinois University

Executive Director, Disability Network Oakland & Macomb, Troy Education: Master of Arts in Communications, Wayne State University

Barbara Willis directs 275 Detroit Rescue Missions Ministries staff members and consultants in providing crisis intervention, emergency services and programs that help clients restore relationships, find employment and become productive members of their communities. “Barbara … inspires hope and loyalty in people. She is as focused in tough times as she is fervent in good times. …We couldn’t have had a better COO all these years. Our nearly 300 staff members speak of her as a splendid source of inspiration and steady guidance. And lest I forget, Barbara gets along well with even the most difficult people around. Perhaps, the secret is in her perceptive, patient and purposeful disposition,” said Chad Audi, president and CEO of DRMM. Her work is vast. In addition to becoming a certified instructor through nonviolent crisis intervention to train and support staff, she oversees medication-assisted therapy, medically supervised treatment, detoxification services and meals for hungry individuals of all ages. Willis, who was promoted to her current position 12 years ago, has been key in the expansion of facilities and services, including a per diem housing program for veterans, evidence-based treatment and corrections for returning citizens and the successful reaccreditation of housing and treatment programs. Further, despite reductions in funding, Willis has been able to help DRMM accommodate an increased number of emergency shelter clients and find alternative transitional housing for homeless people. Wills is chair of the Highland Park Planning Commission and member of Batterers Intervention Services of Michigan.

REBECCA WROCK Vice President-elect, Board of Directors, Attorneys for Animals, Canton Education: Master of Laws, University of Alabama School of Law Rebecca Wrock has been an advocate for animals for many years. While a student in college, she was president of the student animal law organization and earned a place in the State Bar Animal Law Section, where she serves on its legislative and awards committees. “Rebecca Wrock is an exemplary member of the animal welfare community. …She shares her extensive expertise in the practice of trust and estate law to help fellow attorneys and the public address a critical issue in companion animal welfare — how to protect and care for pets after the owner’s death or disability. She is a published author and frequent lecturer on pet trusts and other tools that can be used to provide for pets when their owners are no longer able to do so,” said Ann M. Griffin, chair of the Animal Law Section of the State Bar of Michigan and director of Advocacy for Michigan Humane Society. For the past four years, Wrock, an associate attorney at Couzens Lansky, has been volunteering at Attorneys for Animals, an advocacy organization that provides resources for people who care about animals and animal welfare. She is heavily involved in fundraising, member recruitment and program development. She conceived of the nonprofit’s Animal Friendly Attorneys program, spearheaded the holiday fundraiser, created the AFA Book Club and developed a Pet Trusts Talk educational event.

One of Kelly Winn’s first tasks as executive director of Disability Network Oakland & Macomb was to sit down with individual staff members. She asked if they were happy in their jobs and moved people to where they would be more fulfilled. Since then, DNOM, which provides resources, advocacy, information, support and education annually to 7,000 people of all ages and disabilities, has experienced steady growth, garnered more community partners and contracts and improved employee morale. Under Winn’s direction the organization has increased funning to $2.2 million from $1.4 million and added services such as independent living assessments, ADA assessments, inclusive recreational programming, and training on elder abuse prevention, neglect and financial exploitation. Over the past two years, Winn has been instrumental in implementing the REC-it with DNOM recreation program. Since the launch, DNOM has offered a Chronic Pain management class, partnered for a 5K walk and with a fitness provider and developed cooking and home repair classes. Winn is an elected member of the Disability Network of Michigan’s Board of Directors and part of the Hemophilia Foundation of Michigan. “Rather than focusing strictly on fundraising for her own benefit, Kelly looked at our event as a whole and thought about leaving a greater impact. I am so grateful for her creativity, selfless outlook and motivation,” said Carrie McCulloch, Special Events manager at Hemophilia Foundation of Michigan.

S13

JUDITH FISCHER WOLLACK CEO, Wolverine Human Services, Grosse Pointe Park Education: Master of Social Work, Wayne State University Judith Wollack makes critical and vital decisions only after looking at the entire picture and discussing it with involved stakeholders. She leads an executive team that leads 650 employees at Michigan’s largest child welfare agency. Wolverine Human Services operates six residential facilities and three foster care offices that serve 500 children daily. When the economy took a dive in 2008, Wollack was tasked with making difficult decisions, including laying off several hundred employees and cutting the budget. Despite limited funds and the increasing cost of youth in Wolverine’s care, Wollack works to ensure the nonprofit meets the needs of children and fairly compensates its staff. She also works closely with marketing to continually increase awareness and fundraise and has been instrumental in the organization’s efforts to benefit the community by planting urban apple orchards. The nonprofit also opened a counseling center to serve Taylor residents. “I see Judy’s greatest strength as her ability to hear about or see an issue affecting youth in Michigan and then translate that need into direct solutions. Under Judy’s guidance, Wolverine Human Services has put Michigan on the map for offering successful treatment programs for abused, neglected and delinquent youth as well as providing hundreds of children and families the opportunity to become foster and adoptive families,” said Karen Paciorek, member of the WHS Board of Trustees.

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

LIONS FROM PAGE 3

The Lions’ cheaper concessions (they call it their “Silver Savings” pricing model) aren’t as sweeping, but the team said it’s pleased with results so far. The reductions are in cooperation with Chicago-based Levy Restaurants, which has been the Ford Field concessionaire since the $500 million stadium opened in 2002. The cheaper fare at Ford Field are certain beers, cocktails, sodas and hot dogs before the game, and they’re available at four main locations. There also are $12 meal combos (beer or soda paired with a hot dog and chips) and $5 Bud Light and Miller Lite beers at certain locations during the entire game. Of the team’s 47 concessions locations, 15 have the reduced-priced meal combos, four have the $5 beer, and one has both, the Lions said. The four Power Hour locations inside the stadium have seen a 48 percent increase in sales this season, the team said, and the locations offering the cheaper meal combos have seen a 21 percent boost in sales. Additionally, the checkout speed has improved 28 percent at the discount food locations. “With the percentages, it’s been better-received than we thought,” Kazole said. The Lions didn’t disclose dollar amounts. The team conducts surveys and focus groups, primarily with the 40,000plus season ticket holders, to monitor customer satisfaction and gather other data for analysis. NFL teams also get weekly feedback from the league’s fan surveys. Kazole said there are thousands of comments throughout the seasons. “We look at every single one of them,” she said. The Lions rank in the second quar-

BILL SHEA/CRAIN’S DETROIT BUSINESS

The four Power Hour locations inside the stadium have seen a 48 percent increase in sales this season and locations offering cheaper meal combos have seen a 21 percent boost in sales.

tile of fan satisfaction for food and beverage, Kazole added. Without disclosing dollar figures, Kazole said the reduced prices have meant less total food and beverage revenue despite selling more items. “There have been some financial implications,” she said. “You always go in with any new business initiative and talk about the revenue impact. We definitely spent a lot of time on that. We didn’t raise prices elsewhere in the stadium, maybe a little on craft beer.” The team and Levy were willing to take a revenue hit to improve fan satisfaction and getting people inside sooner. “They were willing to look at it for us, knowing it was important to move ahead with us,” Kazole said. “(Sales revenue decline) was a discussion item, but it wasn’t the main topic.” Falcons officials told NPR’s “Planet Money” economy podcast this fall that they expected the concessions discount to translate into $4 million less in sales, but it turned out to be much less than that because of increased fan consumption. Atlanta didn’t disclose dol-

Advertising Section

PEOPLE ON THE MOVE To place your listing, visit www.crainsdetroit.com/people-onthe-move or for more information, please call Debora Stein at (917) 226-5470 or email dstein@crain.com.

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

lar specifics. The team’s entire 71,000seat inventory is taken up by season ticket holders. Levy also is the Falcons’ concessionaire, but the Lions are unable to match their broader concessions cuts because Ford Field wasn’t built to handle considerably larger food and beverage consumption. The back-shop space doesn’t exist for inventory, Kazole said. Atlanta’s stadium was built to store, make and sell more food. “We don’t have what sort of infrastructure,” she said. “We don’t want people waiting in line for an hour for a hot dog.” The Lions said they studied that the Falcons have done, and a front office contingent traveled to the first game at Mercedes-Benz Stadium to see how concessions, ticketing, entertainment, and other operations worked. “We looked at that, we looked at every option,” she said. The Lions pair their reduced concessions prices with other efforts to lure fans into the stadium sooner. The Power Hours include singers, trivia contests, games, a drumline, team mascot Roary and an extended pregame show on the video boards.

Happier fans, looser wallets Getting people inside the stadium sooner — especially when downtown is choked with other events in its busy entertainment and sports district — means fans more quickly get their food, drinks, and merchandise. They don’t get stuck in long lines as often, and happier fans buy more stuff. Atlanta has been the case study for that theory, and the results so far support the strategy: Last season, the Falcons said fans spent an average of 16 percent more per person on concessions compared with the final season at the team’s prior stadium, the Georgia Dome. Additionally, the team said it saw 6,000 more fans entering the new stadium an hour earlier. A $2 soda at Mercedes-Benz Stadium comes with free refills, while pizza slices, peanuts and basic fries are $3 each. Atlanta cut prices on more items for this season by an average of 12 percent, including burgers, brats, sausages, chicken sandwiches and fries. The team also added a stadium-exclusive craft beer that sells for $5 for a 12-ounce draft and $7 for a 20 ounces. The other NFL team that’s announced a broad reduced-price concession program is the Baltimore Ravens. The team and Philadelphia-based concessionaire Aramark cut prices on 21 food and beverage items an average of 33 percent at M&T Bank Stadium. That includes $5 beers and $3 hot dogs It’s not just NFL teams rolling back prices. The NBA’s Atlanta Hawks over the summer unveiled a menu of a dozen items priced from $1-$5. Before last

season, baseball’s Baltimore Orioles rolled out a line of smaller-sized soda, beer, french fries and popcorn for cheaper prices. In college football, the University of Texas and Mississippi State announced concession price reductions this year. Not every team, venue, or concessionaire is trying what Levy and its team partners are doing. Value meals have long been a staple of sports venue menus, but deep and broad price cuts are not yet an industry standard. Locally, Buffalo-based Delaware North Sportservice has handled concessions for the Detroit Tigers since 1930 (at Tiger Stadium and now Comerica Park) and more recently for both the Detroit Red Wings and Pistons at Little Caesars Arena that opened last year. Those venues and teams haven’t rolled out price reductions. Sportservice issued a statement from Vice President Robert Thormeier when asked about potential reduced-priced concessions programs akin to what the Lions and Falcons are doing. “We are always testing new concepts and new pricing to better understand what resonates with our guests,” he said.

Spreading practice Victor Chiasson, an assistant professor of sport management at Eastern Michigan University, said he expects other teams and venues to eventually do what Levy is doing with the Lions and Falcons. “This move is in direct response to research teams have done to identify what’s stopping more fans from attending their events,” he said via email. “That research shows the major issues that affect new fans from attending are the prices for tickets, concessions and parking. This idea shows that they are listening and reacting.” Chiasson said self-serve options also are smart additions at stadiums and arenas, and he expects those to multiply. He noted that the Tigers were first to have a dedicated grab-and-go option at Comerica Park, something copied by the Lions. “The increase in self-serve kiosks at our facilities has been another wise move to address another pain point for fans, how long they have to wait to be served,” he said. One concessions industry insider said he expects price cuts to come mainly from NFL teams, because the league simply makes more money than the other major U.S. sports, and a larger chunk of it comes from television rights fees. “The reason that you see it in football is because if you look at the overall economics, these teams make a lot in non-stadium specific revenue, from TV contracts and advertising,” said Chris Bigelow, president of Kansas City, Mo.-based food service consultancy The Bigelow Cos. “The other leagues are not as heavily skewed toward TV. They’ve got to make more money locally, and they’re not real anxious to give away a profit center of food and beverage.” That said, baseball, basketball, and hockey teams likely will try some form of reduced menu prices, if nothing else than for happier fans, getting them inside sooner and some positive spin. “There is a huge emphasis on the customer experience and food and beverage often is No. 1 item. Team focus on customer service in the last 10 years, it’s become pretty serious,” he said. Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

SPOTLIGHT Mosaic Youth Theatre founder to retire

Mosaic Youth Theatre of Detroit’s founder and Artistic Director Rick Sperling will retire in September from the nonprofit he founded 26 years ago. In preparation for his departure, Mosaic has Sperling promoted DeLashea Strawder, a Mosaic alumna, to artistic director. Strawder joined the nonprofit in 2003 as assistant music director and steadily rose up the ranks to music director and associate artistic director. As artistic director, she will develop and oversee Mosaic’s programs, working with Executive Director Stefanie Worth to align educational and performance programming with strategic plans and budgets. “It’s time for the next generation and for someone who’s been through the program to take the artistic lead,” Sperling said.

Dürr Systems hires North America leader

Southfield-based Dürr Systems Inc. announced last week the hiring of longtime Ford Motor Co. manager Mike Boss to serve as its president and CEO. Boss replaces Bruno Welsch in leading the North American subBoss sidiary of Germany’s Dürr Systems AG. Welsch has been promoted to the paint and assembly supplier’s board of directors in Germany. As president and CEO, Boss will be responsible for Dürr’s paint and final assembly, application technology and clean technology in North America, the company said in a news release. Boss has spent the last 30 years at Ford moving up the ranks of its painting division, most recently serving as chief engineer for Ford’s global paint engineering.

Michigan arts council exec director retiring

The executive director of the Michigan Council for Arts and Cultural Affairs is retiring after 20 years with the government organization. John Bracey, 61, is scheduled to leave the agency Dec. 28, acBracey cording to the Michigan Economic Development Corp. He will be replaced by Alison Watson, 43, who has been the council’s programs manager for seven years. Bracey joined in 1998 as director of programs and worked up to executive director by 2006.

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

SURGEONS

Advertising Section

CLASSIFIEDS

FROM PAGE 3

“Michigan is behind the eight ball in the movement to outpatient surgery. We will do more in the future because payers and employers are starting to adapt to change,” Fortin said. “The costs are lower, and we are proving the outcomes are good. We aren’t there yet, but we are building our database to prove it.” Last month, MOS fully converted all five office sites to a single electronic health record system — Athena Health EHR. The Athena EHR will help it track costs and outcomes and integrate care more seamlessly for patients, he said. “We want to build on the potential of evidence-based medicine and provide care that will be easy for our patients. Health care is now done in a fragmented manner, and we can do better,” Fortin said. There was another reason for the physicians banding together, Fortin said. Independent doctors sense smaller practices “are dying. Lots of young doctors are employed by big institutions,” he said. “We hope by coming together, having some size, we will be able to save smaller practices” from takeover or domination by hospitals or larger corporations. David Markel, M.D., market president of The Core Institute at Porretta, a nine-physician orthopedic group in Southfield and Novi that mainly practices at Ascension hospitals, said the MOS merger was a great move and reflects the need for medical groups to gain operational and managed care contracting efficiencies. “We talked with some of the (MOS) groups about doing something similar. They weren’t ready, but it must have gotten the domino going” that led to the five-group merger, said Markel, former president of the Michigan Orthopedic Society.

Outpatient centers key to lowering costs One of the keys to MOS’ growth is the push of payers and employers to do more surgeries in outpatient settings, Fortin said. MOS does the majority of its outpatient surgeries at UnaSource Surgery Center in Troy, where it has a 40 percent ownership interest in the five-operating room center. UnaSource is a joint venture with Crittenton Hospital, physicians and managing partner Visionary Enterprises Inc., a for-profit company in Indianapolis. So far, the group has conducted more than 700 outpatient surgeries this year at UnaSource that would otherwise have been performed at Beaumont in Royal Oak, Fortin said. “We have a good relationship with Beaumont, but we are an independent group and the surgery center” creates friction with them, Fortin said. “Many of our (surgeons) have developed significant outpatient-based businesses. We wanted to do more as a (single) entity.” Carolyn Wilson, R.N., Beaumont’s COO, said Beaumont has experienced a small percentage decline in inpatient surgeries in Royal Oak the past year, as MOS is its primary orthopedic group. Beaumont in Royal Oak is projected to perform 7,000 inpatient orthopedic surgeries this year. “They (MOS) provide the vast majority of care at the Royal Oak campus. They take trauma calls and do inpatient work,” said Wilson, adding that group members oversee Beaumont’s orthopedic residency and fellowship program. “We are connected with them in many ways.”

To place your listing, contact Kate Rozek at 313-446-0485 or email krozek@crain.com www.crainsdetroit.com/classifieds Paul Fortin: Payers, employers starting to adapt.

Carolyn Wilson: Beaumont favors lower-cost options.

Beaumont supports the transition of inpatient surgeries to outpatient and same-day surgery centers because patients and employers are demanding it, Wilson said. “We spend the most as a country in health care, and the move to lower-cost platforms is right for the patient,” she said. Wilson, who has worked in Minneapolis for Fairview Health Services before coming to Beaumont in 2016, said other parts of the country are ahead of Michigan in outpatient surgery trends. Viellieu said Michigan payers for years didn’t encourage outpatient surgery because costs were simply passed on to employers or patients. “There was not a strong need to change because reimbursement was good in Michigan. But as the pressures hit, (payers such as Blue Cross Blue Shield of Michigan) started to push outpatient surgery,” Viellieu said. “There still needs to be a cultural change with payers” toward more flexibility for outpatient surgeries.

Beaumont developing outpatient strategy In November, Beaumont announced plans to build a $5.5 million outpatient orthopedic surgery center in Taylor. Some MOS surgeons will help staff the center. Beaumont also is working with an Atlanta company to build a 30-urgent care center network. Wilson said the Taylor center, along with a planned new orthopedic surgery and musculoskeletal center on the Royal Oak hospital campus, are part of a Beaumont strategy to move more into outpatient orthopedics. “We want to serve our patients in a couple of communities, if they need elective hip and knee,” she said. “Taylor and Royal Oak makes sense. ... Separating inpatient and outpatient makes sense.” The two ambulatory surgery centers will also include Beaumont orthopedic residents and fellows. Wilson said Beaumont is discussing a partnership with MOS on the Royal Oak project. She said it is too soon to talk about the project details. Fortin said the joint venture, if approved, will benefit both organizations and patients and further solidify the move to outpatient surgery. Steve Anderson, Blue Cross’ vice president for hospital contracting and network administration, said the dynamics in Michigan are different for outpatient surgery than other parts of the country. He said Michigan has had fewer ambulatory surgery facilities, and payers have been able to work very closely with hospitals in the past to improve quality and contain costs. “Historically, Michigan has tried to cooperate and collaborate with hospitals to prevent a watering-down of revenue to freestanding facilities,” said Anderson. Now, Blue Cross is moving more to encourage use of lower-cost outpatient treatment. “We are able to do it now with the infrastructure we have in the state,” he said. “Employers are really clamoring for cost containment.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

CRAIN’S READERS HAVE AN AVERAGE NET WORTH OF $1.6 MILLION* Contact Kate Rozek at krozek@crain.com or 313-446-0485 for details. *Signet Readership Study

POSITIONS AVAILABLE

MISCELLANEOUS ù 34,000 sq. ft building in the Green Zone. Owner would like to rent whole building to one Marijuana grower.

WE’RE LOOKING FOR LEADERS! The Detroit Transporation Corporation has an immediate opening on our team for: SAFETY SYSTEM MANAGER Qualified candidates, preferably in the public transit industry, with experience in performing occupational health, rail system safety, OSHA training and construction oversight and coordination. Individuals seeking a new, challenging opportunity in southeastern Michigan are encouraged to apply. The complete job posting can be viewed online:

ù Senior Living Site Plan - Highland, MI on M59, 800 ft. frontage, land only, 10 acres, 1 mile from US23 $1M. Seller has feasibility study for this property. Billl McMachen ~ 586-915-4441

RESIDENTIAL PROPERTY

WOULD YOU LIKE A PETOSKEY AREA CONDO!!?? WELL THEN CALL: JOE BLACHY (231) 409-9119

http://www.thepeoplemover.com/employment-3/

CRAIN’S READERS ARE 4.5x MORE LIKELY TO INFLUENCE CORPORATE FINANCING DECISIONS

• PRICES FROM $1 MILLION + TO $200,000 • PETOSKEY, BAY HARBOR, HARBOR SPRINGS, CHARLEVOIX, BOYNE CITY • WATERFRONT UNITS AVAILABLE

JOE BLACHY To find out more about our audience, reach out to Kate Rozek at krozek@crain.com *The Media Audit, based on Crain’s print readers

(231) 409-9119

JOE@JOEBLACHY.COM JOEBLACHY.COM CALL ANY TIME BETWEEN 7AM AND 10PM 420 HOWARD STREET | PETOSKEY, MI 49770

DON’T LET YOUR BUSINESS LOSE OUT

ON THE NEXT HOLIDAY PARTY, GIFT EXCHANGE OR FAMILY OUTING It’s holiday season and the perfect time to highlight your catering service, venue space, gift catalogue or restaurant. Our classified advertising section offers business owners a variety of options to boost their marketing efforts. FOR MORE INFORMATION ABOUT THESE OPPORTUNITIES, email or call Kate Rozek @ krozek@crain.com or 313-446-0485.

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

SWEATERS FROM PAGE 3

“A lot of that has to do with teaming up with influencers online,” said Hajjar. It added licensed sweaters and apparel from two gaming world superstars whose gamer names are Ninja and PewDiePie. PewDiePie has 74.4 million subscribers on YouTube. “Their fans are really diehard,” he said. Many retailers, large and small, sell ugly Christmas sweaters, from Kohl’s and JCPenney to a site called Tipsy Elves, which also sells Halloween, St. Patrick’s Day and Hanukkah apparel and holiday sweaters for dogs. Although holiday sweaters have been around for decades, the trend may have taken off around 2001 when young professionals donned their ironic holiday sweaters for ugly sweater parties, according to a Time magazine article. They have become such iconic holiday fun, this year Krispy Kreme created a doughnut inspired by them. Some 47 percent of shoppers say they will spend more on Christmas sweaters or holiday apparel this year,

ALIX

FROM PAGE 1

And in another bankruptcy case, the Chapter 11 bankruptcy of Westmoreland Coal Co. in Texas, a judge asked in a recent filing that the trustee’s office review Alix’s allegations that McKinsey’s actions constitute a federal crime. Representatives from McKinsey, however, say they’re operating within the law and that Alix has organized a legal, political and media campaign to try and put McKinsey out of business to benefit AlixPartners — which is not involved in the cases. Alix and McKinsey have sparred for several years across several court cases. In one of them, Alix alleges the firm has engaged in a criminal enterprise in a civil Racketeer Influenced and Corrupt Organizations Act (RICO) case filed in U.S. District Court in New York in May. In two closed bankruptcy cases, Alix alleges McKinsey failed to disclose its dual roles, where it had been or was serving as an adviser to the bankrupt company’s creditors while also working as the company’s restructuring firm. The result of the cases was a reorganization plan that sold or shifted assets to its creditors, some of which McKinsey represented and some creditors that involved investments from McKinsey’s top executives. McKinsey, in turn, says Alix is a crusader against the firm, attempting to “stifle competition in the bankruptcy advisory market.” “The onslaught Jay has mounted is unusual,” a representative for McKinsey said in an interview with Crain’s. “This is a nonstop campaign; he’s bought former bankruptcy judges, he’s lobbying Congress in an explicit whisper campaign. He’s trying to put McKinsey out of business.”

Dream team lineup Alix has hired a high-powered legal team to compete with McKinsey’s expansive legal staff. He sought people with nationally recognized expertise on the legal topics they’d confront and found three right here in Southeast Michigan: J Steven Rhodes, retired chief judge of the U.S. Bankruptcy Court in Detroit, who presided over the city of Detroit’s bankruptcy case J University of Michigan law professor John Pottow J Daniel Lemisch, general counsel of

UGLYCHRISTMASSWEATER.COM

Vanessa Hajjar Askar (left), Fred and Mark Hajjar of UglyChristmasSweater.com

according to GlobalData Retail. U.S. holiday shoppers will spend an average of $1,007 this year, including $215 on holiday items such as cards, flowers and clothing, the National Retail Federation reports. Two years ago, Hajjar grew “extremely worried” as major retailers started selling and promoting ugly sweaters, he said. So he looked at how to compete. UglyChristmasSweater. com relies on strong search engine optimization — so it shows up high in

Google searches — and creates merchandise that would never make it at Macy’s or a discounter. “We look to create original designs that you cannot find anywhere else. Usually, we have a ‘made you look’ goal where our sweaters make people take a double take,” said Vanessa Hajjar Askar, who oversees creative and customer service. She points to a 3D moose popping out of the front and back of a holiday sweater as provoking smiles and curiosity. The company has

Alix’s Birmingham-based holding company, Lakeview Capital Inc., and former acting U.S. attorney, first assistant U.S. Attorney and chief of the criminal division at the U.S. Attorney’s Office for the Eastern District of Michigan “I needed experts who are of high integrity, who are beyond reproach … who are unassailable for their character and their veracity, as well as their recognized expertise and ability,” Alix said. “I knew that McKinsey would fight this very strongly, which they’ve done. And I would need a team of nationally recognized experts to stand up to that, and the team has done just that.” Each member of the legal team retained by Alix has worked in different capacities on different parts of the litigation Alix has brought against McKinsey. Some are working as expert witnesses or topical experts, and others are representing Alix as an attorney in various courts. Rhodes is serving as Alix’s lead attorney in the Alpha Chapter 11 case and the Westmoreland Coal case as well as providing expert witness support and bankruptcy expertise in the separate, civil RICO lawsuit. Rhodes, who retired from the bench in 2015 after 29 years, said he agreed to work with Alix to “protect the integrity of the court.” “My preference would be for McKinsey to obey the law,” Rhodes said. “That would allow me to enjoy my retirement in a way that I had foreseen enjoying it. This is important work. I feel it’s something I have to do.” Together, Alix and Rhodes, began assembling a broader team with specific expertise in bankruptcy code. Pottow, the John Philip Dawson Collegiate Professor of Law at UM, is an internationally recognized expert in the field of bankruptcy and commercial law, according to his biography on UM’s website. Before joining UM in 2003, he worked at law firms including Weil, Gotshal and Manges of New York and the former Hill & Barlow of Boston. He has litigated bankruptcy cases before the U.S. Supreme Court, testified before Congress, presented at academic conferences around the world and been a commentator for national and international media outlets. Pottow also serves as a delegate to the United Nations Commission on International Trade and is the author of what Alix characterized as one of the “definitive” bankruptcy law textbooks

in the country: “The Law of Debtors and Creditors: Text, Cases, and Problems,” co-authored with U.S. Sen. Elizabeth Warren, a former Harvard Law School bankruptcy law professor. “Honestly, I took this on not thinking much would come of it, but there’s something here,” Pottow said. “I really think this whole thing is driven by McKinsey’s desire for confidentiality. They don’t want to remove clients’ confidence, so they don’t even tell bankruptcy courts about their conflicts. That’s good for their clients, but that’s also cheating. At best, it’s a cynical way to do business in the courts. It’s manipulative. There’s a feeling they know if they disclose, they will be thrown out of all these bankruptcy cases and lose out on work.” Pottow has served as counsel in the Alpha case and has also provided expert opinion to the U.S. Department of Justice about McKinsey’s alleged violations as well as providing expert testimony and support for the RICO lawsuit Alix has filed, along with Rhodes. Lemisch, who joined Alix’s Lakeview Capital early this year, brings years of criminal prosecution experience to the team. He has prosecuted cases involving public corruption, white collar crime, health care fraud, narcotics conspiracies, money laundering and homicide. He has also lectured for the DOJ and U.S. Department of State on criminal justice reform. “In his RICO lawsuit in New York, as provided for in that statute, Jay is really serving as a ‘private attorney general,’ bringing racketeering allegations against McKinsey,” Lemisch said. “I provided input into analyzing the very serious crimes we allege McKinsey has committed.”

Broken laws or competition? Alix denies his goal is to put McKinsey, which also operates an office in Detroit at the Renaissance Center, out of business. “I absolutely want McKinsey in business,” Alix said. “It’s in my commercial self-interest to have a healthy and legal McKinsey. AlixPartners is on the same playing field. The idea that we could topple them is absurd. McKinsey is the first firm in a new country and gets clients educated to use consultants. “They also charge the highest prices, so if we show up and charge less, we’re looking good. That’s good for

on-staff designers and uses some freelancers as well. If a trend develops over the summer, or in September, Fred Hajjar said, the designers will jump on it and create a sweater ready to sell by November. “We want it to go viral,” he said. Holiday sweaters are “like a costume. They feel the joy. It creates laughter in others.” Millennials are the main audience, though buyers span many generations. Many sweaters are offered on the website for two years or less. Then any leftovers are sent to a closeout website. The company is owned by Hajjar, his brother Mark, who focuses on buying and importing sweaters, and sister Hajjar Askar. The company hires about 50 temporary workers — most in its 42,000-square-foot warehouse — for the holidays and employs 35 people year-round. Fred Hajjar got started with a “Dukes of Hazzard” online store while he attended Michigan State University. In 2004, he received a cease-and-desist order from Warner Bros. because, Hajjar said, “we were actually ranking above Warner Bros. on Dukes.”

Hajjar switched to a site called TVStoreonline.com, which had a broader array of items from many shows. That business is now one of several domains owned and run by the family’s other business, Your Fantasy Warehouse Inc. Within the last year, UglyChristmasSweater.com started offering some custom sweater creation. Custom printing of hoodies and sweaters will grow through a local screen printing company that the brothers now own with the original owner. “It prints, cuts and sews these sweaters” so they ship in four to seven days, said Hajjar. The next step into customization will come in a year or two, he said. The Hajjars recently purchased the site sweaters.com to sell custom sweaters knit in the United States. Business and corporate sales represent about 10 percent of sales and is likely to grow. UglyChristmasSweater.com has a hectic December with Ninja gamer clothing orders stacking up and more. Their busiest day is likely to be Dec. 17. “Our workspace sometimes resembles Santa’s Workshop with elves,” Hajjar Askar said.

the industry. And they train the best and brightest kids. AlixPartners has 150 McKinsey alumni. I very much want them in business, but I want them to abide by the law.” Alix founded turnaround advisory firm AlixPartners LLP in Southfield in 1981 but stepped away from the company in 2006. He remains a minority owner of the company, which is now based in New York City. But there’s little doubt Alix has launched an all-out personal campaign against McKinsey. He’s spent several millions of dollars since forming an investment partnership, Mar-Bow Partners LLC, in 2015 to become an unsecured creditor in the Chapter 11 bankruptcy of Alpha to be able to challenge McKinsey. His years-long campaign appears to have convinced the U.S. trustee in the Alpha case, who said in a Nov. 30 filing that McKinsey failed to disclose its conflicts of interest and continues to do so, forcing the Justice Department “to search for needles in haystacks” for its conflicts. In a statement, McKinsey said it met U.S. Bankruptcy Code disclosure requirements in that case and that the court already required more disclosures and found no conflicts. “We complied, and the court found that McKinsey was disinterested and could be retained by the debtor,” McKinsey said in a statement. “Evidence shows that disclosures of McKinsey investments that were before the court were fully consistent with the interested parties list provided to McKinsey.” But the acting U.S. trustee determined McKinsey continues to delay disclosures, according to the motion filed Nov. 30 to reopen the Alpha bankruptcy. “... it took seven declarations and many months to elicit important information that McKinsey should have disclosed years earlier,” the filing said. “Further, in response to the U.S. trustee’s request, McKinsey represented that it would file on the public record the remaining information ... provided to the court in 2016 ... but it has not yet done so.” A representative for McKinsey said the company has changed its practices since the trustee got involved in the case in 2016. It now discloses more information to satisfy the trustee’s office. The bankruptcy court system only works if professionals like himself and McKinsey self-disclose all conflicts,

Alix said. “I’m really acting as a de facto whistleblower,” Alix said. “I’ve blown the whistle on what I see as illegal activity ... and to bring McKinsey to justice here.” Separately, a judge in U.S. Bankruptcy Court in Texas issued on Nov. 30 a request for the Office of the U.S. Trustee to review the allegations brought forth by Alix’s Mar-Bow Partners in the bankruptcy case of Westmoreland Coal Co. A similar request was made last month in a case not related to Alix — the bankruptcy of GenOn Energy in Texas. Representatives for McKinsey said the firm has complied with the judges’ requests. “Once the judge said McKinsey should use names, it does,” a representative said. “If we were told we need to strike the balance in a different way, McKinsey made the change. It’s revisionist history to say what McKinsey was doing before was not right. It’s not an unfamiliar process. Disclosures are constantly updating as you’re getting new information. McKinsey has evolved its practice in accordance with the courts’ requests.” But Alix is not satisfied and his RICO lawsuit alleges that McKinsey has committed a criminal conspiracy by intentionally hiding investments made by its executives to secure consulting work. Among the cases cited in that suit was McKinsey’s work in the bankruptcy protection case of Puerto Rico, which is strapped with more than $120 billion in debt and unfunded pension liabilities, The New York Times reported. McKinsey is currently advising Puerto Rico’s oversight board, but its partners control a hedge fund called Compass Group LLC in Latin America that holds bonds in Puerto Rico. Those bonds, under the commonwealth’s current reorganization plan, would return more than double what McKinsey paid for them, The Times reported. Those holdings were not disclosed to the court and the matter is under investigation by Puerto Rico’s oversight board. Representatives for McKinsey said there is no way for McKinsey employees in the Puerto Rico case to know about Compass’ investments. “There is information separation,” a McKinsey representative said. “If the professionals working on the bankruptcy don’t know they have a financial interest through a fund-of-funds structure, how can they report? If this is the criteria, then every firm in this space is disqualified.”

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

CORKTOWN FROM PAGE 1

At the building known as The Factory, the 111-year-old one-time hosiery factory now houses more than 200 Ford employees working in teams that are developing the planned 2021 launch of an autonomous vehicle ride-hailing service. “There’s a lot of thinking that we’re doing here in this building around the journey and how people are going to be using the service, how people are going to be interacting with the car,” said Sherif Marakby, CEO of Ford Autonomous Vehicles LLC. The three-story building features wood floors and beams and the kind of trendy open-floor office space that is the exact opposite of the cubicle-andclosed-door office designs that most Ford employees have worked in for years at the Glass House in Dearborn. “There’s no hierarchy here. I have no parking spot,” said Marakby, Ford’s top executive stationed in Corktown. “Not only do I not have an office, I don’t have an assigned desk — I float around.” For Marakby, the working environment at The Factory is a sea change from the concrete jungle he first worked in for Ford 28 years ago when the company still had offices in the riverfront Renaissance Center skyscraper Henry Ford II built in the 1970s to help revitalize Detroit and the company his grandfather founded in 1903. “We’ve taken everything we know about the progressive Silicon Valley workspace and how people work and even the cultures and behaviors of how people work, and we’ve pushed it as much as we can — even sometimes in a more progressive way than what we’re seeing in some of the Silicon Valley places,” Marakby said. “This is Silicon Valley in Detroit,” he added. While Marakby’s team plants the seeds for a new kind of culture for Ford in Corktown, the bigger challenges of Ford’s audacious re-entry into Detroit lie ahead with a $350 million rehabilitation of Michigan Central Station. Ford’s construction contractors at Christman Brinker and Quinn Evans Architects are working to stabilize the building’s front waiting room that was handcrafted in 1913 with ornate marble and plaster details meant to resemble a Roman bathhouse. Structural steel reinforcements have been installed for safety purposes over the towering columns inside the front waiting room, while engineers assess any kind of damage to the building’s bones that may have occurred during three decades of being exposed to Michigan weather. “We had to stabilize those arches because if those gave way, we’d be done,” said Richard Bardelli, construction manager for Ford Land Development Co., the automaker’s real estate arm. Engineers are assessing the condition of exterior terra cotta and limestone masonry as well as four kinds of plaster that were used throughout the Beaux-Arts building when it was constructed in 1912 and 1913. “There’s surprises hidden that we haven’t found yet,” said Ronald Staley, senior vice president of The Christman Co., a Lansing-based construction firm that has partnered with Detroit-based Brinker Group on the project. One hidden surprise Christman Brinker’s engineers have already discovered was some of the plaster cast-

www.crainsdetroit.com Editor-in-Chief Keith E. Crain President KC Crain Group Publisher Mary Kramer, (313) 446-0399 or mkramer@crain.com Managing Editor Michael Lee, (313) 446-1630 or malee@crain.com Product Director Kim Waatti, (313) 446-6764 or kwaatti@crain.com Digital Product Manager Carlos Portocarrero, (313) 446-6056 or cportocarrero@crain.com Creative Director David Kordalski, (216) 771-5169 or dkordalski@crain.com Assistant Managing Editor Dawn Riffenburg, (313) 446-5800 or driffenburg@crain.com News Editor Beth Reeber Valone, (313) 446-5875 or bvalone@crain.com Special Projects Editor Amy Elliott Bragg, (313) 446-1646 or abragg@crain.com Design and Copy Editor Beth Jachman, (313) 446-0356 or bjachman@crain.com Research and Data Editor Sonya Hill, (313) 446-0402 or shill@crain.com Newsroom (313) 446-0329, FAX (313) 446-1687, TIP LINE (313) 446-6766

PHOTOGRAPHS BY LARRY PEPLIN FOR CRAIN’S

At The Factory, Ford has set up a Silicon Valley-like open office where even the unit’s top executive doesn’t have a fixed desk. “There’s no hierarchy here,” says Sherif Marakby, CEO of Ford Autonomous Vehicles LLC.

Marakby

Richard Bardelli (left), construction manager for Ford Land Development Co., and Richard Hess of Quinn Evans Architects survey the Michigan Central Station.

ings contain horse hair, a common binding agent for mortar a century ago. “We probably, you know, won’t use horse hair in our plaster,” Staley said. The structural assessments will help engineers determine whether the plaster can be preserved. Nearly 21,000 square feet of ceiling

tile made by Guastavino — a New York company that no longer exists — will have to be removed, cleaned and reattached, Staley said. Ford Land is working to find a tile company to manufacture replacement tiles, a process that’s expected to take a year, Bardelli said. New technologies like comput-

“We want to save the building,” Richard Hess said. “The best way to do that is to get under construction as quickly as possible.”

Staley

er-generated 3D-modeling will be used to remake light fixtures and plaster medallions lining the ceiling columns that have been damaged by years of rain infiltrating the building, Staley said. The most dire task right now is “getting the weather out of the building,” said Richard Hess, principal of Washington D.C.-based Quinn Evans Architects, which is Ford’s design contractor for the project. To divert snow and water from entering the depot, Christman Brinker will start installing temporary tarps within a week to a couple of weeks. They’ll be fully installed by late January or early February, acting as roofs over the entirely exposed first-floor concourse in the back and assorted gaping window areas. Crews will also install a large rubber membrane over the roof of the train station’s front entrance to divert water from getting into the waiting room and 100,000-square-foot basement of the building. “We want to save the building,” Hess said. “The best way to do that is to get under construction as quickly as possible.” A year from now, Ford’s contractors plan to have a temporary heating system in place while they try to design a modern heating and cooling system that doesn’t disturb the original architectural design of the firstfloor concourse of the one-time gateway to the Motor City. While historical preservation of the front waiting room is the priority, the rest of the hulking structure has to be adapted to modern use for office workers, retail, restaurants and possibly a hotel or residential space in the top two floors, Hess said. “We’re trying to convert it into use for the future — and not just a museum where we’re preserving the thing the way it was a hundred years ago,” Hess said. Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

REPORTERS Annalise Frank, breaking news. (313) 446-0416 or afrank@crain.com Jay Greene, senior reporter Covers health care. (313) 446-0325 or jgreene@crain.com Anisa Jibrell, breaking news. (313) 446-1612 or ajibrell@ crain.com Chad Livengood, senior reporter Covers Detroit rising. (313) 446-1654 or clivengood@crain.com Kurt Nagl Breaking news. (313) 446-0337 or knagl@crain.com Kirk Pinho Covers real estate. (313) 446-0412 or kpinho@crain.com Bill Shea, enterprise editor Covers the business of sports. (313) 446-1626 or bshea@crain.com Dustin Walsh, senior reporter Covers economic issues. (313) 446-6042 or dwalsh@crain.com Sherri Welch, senior reporter Covers nonprofits and philanthropy. (313) 446-1694 or swelch@crain.com MEMBERSHIPS CLASSIC $169/yr. (Can/Mex: $210, International: $340), ENHANCED $399/yr. (Can/Mex: $499, International: $799), PREMIER $1,299/yr. (Can/Mex/ International: $1,299). To become a member visit www.crainsdetroit.com/ membership or call (877) 824-9374 ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Director of Sales Lisa Rudy Director, Crain Custom Content Kristin Bull, (313) 446-1608 or kbull@crain.com Senior Account Manager/Political Specialist Maria Marcantonio Advertising Sales Lindsey Apostol, Matthew Miller, Sharon Mulroy, Diane Owen, Kate Rozek Classified Sales Kate Rozek, (313) 446-6086 Events Director Kacey Anderson Director of Marketing Christina Fabugais-Dimovska Senior Art Director Sylvia Kolaski Director of Media Services Joseph (Sam) Tanooki, (313) 446-0400 or sabdallah@crain.com Integrated Marketing Specialist Keenan Covington Sales Support Suzanne Janik 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. Contents copyright 2018 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited.

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

THE WEEK ON THE WEB

RUMBLINGS

Long-vacant Shapero Hall coming down for $108 million development

Businessman James still on Trump’s radar

NOVEMBER 30-DECEMBER 6 | For more, visit crainsdetroit.com

he first of many bricks came down Thursday as demolition work started on the dilapidated Shapero Hall in Detroit’s Lafayette Park neighborhood. Plans call for replacing the former Wayne State University pharmacy school with a $108 million apartment and condo complex from Novi-based Ginosko Development Co. Ginosko President and CEO Amin Irving celebrated the occasion with city of Detroit planning director Maurice Cox and other stakeholders Thursday. They took up ceremonial sledgehammers and whacked down a wall to start leveling a building next to I-375 that many nearby residents and visitors have long seen as an eyesore. “It’s really all the things Detroit development is supposed to be about right now,” city of Detroit Director of Housing and Revitalization Arthur Jemison said in a speech at the Thursday event, citing its at least 20 percent of affordable rental units and the developer’s African-American leadership in Irving. An entity tied to Ginosko paid $16 million to Detroit real estate investor Dennis Kefallinos earlier this year for the Shapero Hall property, according to city records. Kefallinos bought it for $2.3 million in 2007 from Wayne State University. Earlier plans called for renovating the building into 180 microapartments of 400-500 square feet. The new Lafayette West plan comes to fruition through coordination and then unanimous support from a Neighborhood Advisory Council led by Matthew Morin, owner of co-working space Hunt Street Station. Development projects of more than $75 million must work on how they might negatively impact a Detroit community through the city’s Community Benefits Ordinance process. “Ultimately, the proof will be in what they build,” Morin said, but from what he’s seen so far “this is a Class A project, right, this is a project that will be among the best quality in the city. It’ll connect Lafayette Park to downtown.” After the 151,000-square-foot school building on 5.2 acres is knocked down by Detroit-based contractor Adamo Group, Ginosko plans to build 374 apartments and for-sale condos in two five-story buildings and one 12-story mid-rise. It will also have two park areas and some retail, likely selling snacks or coffee. Southfield-based construction contractor Barton Malow Co. aims to get Lafayette West built 30 percent faster than normal using its new high-tech building engineering process, dubbed Liftbuild, for the first time in Detroit. The method also uses fewer workers on site and is safer and lower cost, said Marisa Varga, strategist and promoter for Liftbuild, an affiliate of Barton Malow.

BUSINESS NEWS J Fiat Chrysler Automobiles plans to reopen its long-idled Mack II engine

ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

Amin Irving, president and CEO of Ginosko Development Co., was joined by city and company stakeholders — including Detroit planning director Maurice Cox, far right — in a ceremonial sledgehammering of a wall next to the old Shapero Hall.

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

$135M

The amount of bonds Detroit sold on the back of its own credit for the first time in 20 years

$775M

The Red Wings value, assessed by Forbes

$4.7M

The asking price for Dino’s and M-Brew, two longtime Ferndale restaurants

plant in Detroit as an assembly plant to build three-row Jeep SUVs, The Detroit News and CNBC reported Thursday, citing multiple sources familiar with the plans. The Crain Communications Inc. publication Automotive News confirmed the report through a source familiar with the company’s plans. The News said FCA plans to build a new three-row version of the Grand Cherokee in the plant for the 2021 model year. J A German real estate investor and developer has purchased the Seward Plaza Apartments in New Center for $2.6 million and plans “significant” improvements. Optima Seward LLC, a subsidiary of Munich-based Optima Aegidius Group, made the deal late last month for the historic 34unit complex at 127 Seward St., said James Tumey, vice president at Farmington Hills-based Friedman Real Estate, which brokered the deal. Built in 1922, the 26,600-square-foot property features a marble lobby, Pewabic-tiled fountain and “ice closets” on every floor. J A highly anticipated food hall has opened in downtown Detroit. In the Fort Street Galley communal restaurant space, four chef teams are trying out ideas at a lower cost than if they'd opened their own full-fledged restaurants. Dishes range from Korean-style raw seafood to sandwiches and French-Filipino food. Fort Street Galley aims for a slice of the lunch rush, as well as a place in Detroit’s nightlife, said Ben Mantica, co-founder of Galley Group Inc. with Tyler Benson. J Union workers at the Westin De-

troit Metropolitan Airport hotel have approved a new contract, avoiding a strike at the Marriott-owned hotel, the union said in a news release. Ninety-five percent of the Unite Here Local 24 members who voted last week approved the contract that the union says helps make working conditions safer and includes raises, health care and benefits, it said. J Rush Bowls, a fast-casual restaurant chain that builds healthy meals in a bowl, plans to open its first store in downtown Detroit next year as part of a broader plan to launch five locations in Michigan. Under the franchise development agreement between Seattle native Elizabeth Lehman and the Boulder, Colo.-based restaurant chain, Lehman is targeting spaces near college campuses and areas with high-foot traffic within a “professional building landscape,” according to a news release.

etroit businessman John James won’t be President Donald Trump’s pick for United Nations ambassador, but the president is looking at the CEO of Renaissance Global Logistics for other possible opportunities, according to two sources familiar with the matter. Trump is expected to name State Department spokeswoman and former Fox News anchor Heather Nauert as his new UN ambassador, replacing Nikki Haley, Bloomberg News reported Thursday night, citing three sources who requested anonymity. James has been invited back to the White House this week to discuss other opportunities for him, two sources familiar with the matter told Crain’s. James, an Iraq war veteran who resides in Farmington Hills, is seen as a rising star in the Republican Party, after his better-than-expected finish against incumbent Democratic Sen. Debbie Stabenow in the Nov. 6 election. Stabenow defeated James 52 percent to 46 percent — a narrower margin of victory than her past two re-election victories against career

Republican politicians. Last month, James met with Trump, Vice President Mike Pence and Secretary of State Mike Pompeo at the White House before the ThanksJohn James giving holiday to discuss the UN ambassador job, according to one of the sources. James has been publicly mum about his political future since last month’s election loss. Michigan GOP activists have been urging James to run for the U.S. Senate again in 2020 against Democratic Sen. Gary Peters when Trump will presumably be on the ballot. James is CEO of Renaissance Global Logistics, a division of his family’s James Group International, a supply-chain management company based in southwest Detroit. He also is president of James Group International.

OTHER NEWS J The city of Detroit completed a sale Tuesday of $135 million in general obligation bonds, the first time in more than 20 years that Michigan’s largest city has tapped the municipal bond market on the back of its own credit — and without the need for expensive layers of insurance for bondholders. The 4.8 percent interest rate Mayor Mike Duggan’s administration was able to secure on the bonds allowed city officials to increase the borrowing from $110 million to $135 million, said John Hill, Detroit’s outgoing CFO. J The University of Michigan Law School is receiving $33 million, which officials say is the largest such gift in its history and entirely intended for students. The gift announced Thursday comes from Chris and Lisa Jeffries. Chris Jeffries is a 1974 law school graduate and co-founder of Millennium Partners, a real estate development company. J Economist Michael Porter and Katherine Gehl, former CEO of Milwaukee-based Gehl Foods, will address how competition is affecting the American political system at the Detroit Regional Chamber’s 2019 Mackinac Policy Conference. Porter, a Bishop William Lawrence University professor at Harvard Business School, will discuss the report titled “Why Competition in the Politics Industry is Failing America,” along with Gehl, co-author of the report, according to a news release.

Sister Pie owner Lisa Ludwinski’s collection of recipes and personal tales tops the New York Times’ list of the year’s best baking books.

Sister Pie cookbook tops Times list for baking books S

ister Pie owner Lisa Ludwinski’s collection of recipes and personal tales tops the New York Times’ list of the year’s best baking books. “Sister Pie: The Recipes and Stories of a Big-hearted Bakery in Detroit” came out Oct. 2. The 256-page recipe and story collection makes cameos across the country this holiday season, from the Eater Detroit Holiday Gift Guide to the Huffington Post’s and Chicago Tribune’s. It’s also in the New York Times Book Review’s gift guide. Food writers this fall and winter praised Detroit bakery owner Ludwinski for her likability in the 75-recipe book, as well as the chapter-length attention she gives to perfecting dough making and her odd flavor combinations (apple sage gouda, cardamom tahini squash). Ludwinski’s 4-year-old shop on a changing corner in Detroit’s West Village neighborhood is “scrappy,” a word used by both the Tribune and Times. Its printed-headband-wear-

ing bakers scurry about the small store making “adventurous,” “experimental” treats “with zero nostalgia,” the Times writes in two separate, glowing mentions. Several publications also distinguish Ludwinski for her attention to community. Sister Pie it Forward allows customers to buy a pie slice for a stranger; the baker often talks about striving for a positive impact in West Village. And she eliminated her business’ hierarchy this fall to foster teamwork and spread out less-desirable duties. This book-centric round of national accolades isn’t Ludwinski's first, though. An example: “We’d visit Detroit just to eat at this pie shop,” Bon Appetit wrote back in 2016. Pages Bookshop, Source Booksellers and the Sister Pie storefront in Detroit stock Ludwinski’s cookbook. It’s also available online through Amazon.com and publisher Penguin Random House.

BE ON THE

LOOKOUT FOR THESE UPCOMING

NOMINATIONS PROGRAMS OPEN

CRAIN’S 2019

NOTABLE WOMEN IN REAL ESTATE

Crain’s Detroit Business will name the 2019 Notable Women in Real Estate in a special report on February 18. In that report, we’ll profile women in the real estate industry who are considered leaders in their workplaces and in the community.

OPEN

Crain’s Detroit Business is seeking details on Michigan’s largest merger and acquisition deals. The M&A deals must have a deal value over $10 million and have been announced or closed in the 2018 calendar year and either the target, acquiring or selling company must be located in Michigan. Do you know a 20-something who is someone to watch? Crain's 20 in their 20s recognition program seeks young professionals who are making their marks in the region. This awards program recognizes the hard work of local rising stars and further propels their careers.

2019

Since 1991, Crain's Detroit Business has gathered 40 of the community's overachievers for a special salute. Past winners have started companies, found success at a young age, established businesses and made nonprofits stronger. For the seventh year, Crain’s will recognize the Cool Places to Work — companies that, according to their employees, go above and beyond in putting a focus on workplace culture. Health Care Heroes honors top-notch medical innovators and patient advocates dedicated to saving lives or improving access to care. Winners are selected in multiple categories.