Crain's Detroit Business, Feb. 4, 2019, issue by Crain's Detroit Business

Schools, health centers get $30M in state mental health funding Page 3

Sports columnist Jerry Green: Still Super at 90 Page 3

FEBRUARY 4 - 10, 2019 | crainsdetroit.com

PEOPLE

OIL IN HIS BLOOD How Jack Roush built a racing, engineering empire By Dustin Walsh | dwalsh@crain.com

t 14, Jack Roush built his first V-8 engine. For Jack, that engine was a means to an end. ¶ “In Ohio, you could drive without any encumbrance at all when you were 16 years old, and I wanted to be ready for that, ’cause I had some unfinished business with some other boys that were going to have cars at that time,” Jack said. ¶On a Saturday night in Manchester, Ohio, in 1958, that unfinished business came on a tree-lined stretch of concrete along a tributary of the Ohio River. Driver’s license in his wallet and hands on the wheel of a 1951 Ford Coupe, Jack found himself alongside fellow teenager Jim Bob Jenkins and his 1940 custom Chevrolet Business Coupe.

Team owner Jack Roush walks through the garage area during practice for the Daytona 500 at Daytona International Speedway in 2018.

SEE ROUSH, PAGE 20

AP PHOTO/PHELAN M. EBENHACK

BANKING

Chemical deal marks return to Detroit for TCF CEO By Chad Livengood clivengood@crain.com

TCF Bank CEO Craig Dahl will be an old new face in metro Detroit’s business community. With last week’s announcement of a “merger of equals” between Detroit-based Chemical Bank and TCF, Dahl will remain CEO of the new TCF Bank and holding company and begin splitting his time between suburban Minneapolis and Detroit. crainsdetroit.com

But he’s no stranger to this market. Dahl led the creation of specialty lending businesses for TCF Bank that began in the late 1990s under the bank’s longtime CEO, the late Bill Cooper, a native of Detroit who transformed a struggling Tri Cities Federal savings and loan into a national bank in 1986. SEE TCF CEO, PAGE 19

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REAL ESTATE

Resilient retail

Agree Realty grows through ‘internet-resistant’ strategy 

It’s perhaps opportune timing that Agree Realty Corp.’s new largest tenant in its ever-growing retail real estate portfolio is a paint and coatings giant. Following the purchase or planned purchase of more than 100 stores of Cleveland-based Sherwin-Williams Co. for approximately $150 million, the Bloomfield Hills-based real estate investment trust (NYSE: ADC) will need a

lot of paint — and other building materials — as it doubles its Long Lake Road headquarters footprint to the west by expanding into a property the company recently bought and plans to redevelop, Joey Agree says. “We are full, maxed to capacity,” the company’s 40-year-old CEO said in his second-floor office.

kpinho@crain.com

Craig Dahl: Has history in metro Detroit

Joey Agree: ‘We are full, maxed to capacity’

Special Report: Real Estate, Page 10

By Kirk Pinho

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HONORING HER HERITAGE ity

back to the Philippine Through her business, Lisa Bugg gives

Uniforce Insurance Agency Founder Lisa Bugg addresses the monthly board meeting of the Council of Asian Pacific Americans, where she is executive director, at the Philippine American Cultural Center of Michigan in Southfield. BRANDY BAKER FOR CRAIN’S

Inc. Bloomfield Hills-based Taubman Centers

Rachelle Damico

Special to Crain’s Detroit Business

Lisa Bugg is the founder of Uniforce Insurance Agency, an independent broker agency based in Sterling Heights that offers automotive, life, home and business insurance. Bugg and her family immigrated to the United States from the Philippines when she was 9 years old. When Bugg was about 18 years old, she waited tables and worked as a telemarketer for Visa and Mastercard. After that, she worked as a marketing specialist for CarTemps Rental Agency, a car rental agency based in Ohio, cafrom 1989-1992. Her insurance reer began at James Jackson Allstate Insurance agency in Southfield, where she sold property and casualty

Reports of the mall's demise may be

LARRY PEPLIN FOR CRAIN’S

commun

The state of the metro Detroit shopping mall

Twelve Oaks mall in Novi is owned by

if I Hills and Sterling Heights areas. ing to buy it or not, but I figured as I’ll be restructuring my company could get my foot in the door and ce Bugg Agency and moving my offi develop those relationships, most to Rochester. The reason I did this While marketing for CarTemps, I met likely they’re going to buy. I grew my was to allow my company to grow. James Jackson, who owned an Allcustomers from there. Horace Mann has assets of over $10 state agency in Southfield. He asked I did, and still do, a lot of outsourceducators all over me to work for him, and that was the different call billion and serves with contract I ing. I Filipifirst beginning of my insurance career. insur- the USA. I’ll be the I centers in the Philippines (for na-owned agency ever to get this saw how successful he was, and ance quotes). Outsourcing cuts opportunity with Horace Mann. wanted to do the same. I never knew costs and has saved me more than I was going to stay in the field this 50 percent of my expenses. It’s also are you malls such as What other long, but I ended up loving the insuronce-thriving to the Philipand activities giving back ofunable for this stomy way to comment was with? Place Mall in Waterford involved ance business. Summit pines.ry); and the Taubman-owned Great year, Need to know as the I was announced Kirk Pinho This and Northland Center in has also haveBeing in the Crossing insuranceinfield rates Hills, will Township vacancy mall Auburn kpinho@crain.com Council Detroit own  Metro the your for start to Lakes director decide wrecking Why did you more executive eld both face the in to spend er Southfi me for years allowed as they off to thrive raise Americans dropped in recent years Pacific as continue family High-end malls like some in Oak-company? my of Asian online shopping has and my time with shopping ball this year I wanted destination I’m also the secre- have Allstate, unique and land County are expected to contin-Afterworking increasing, foot are square were growing Northville, and and demographics Rents perfor while they said William Taubman, ofemerged an independent agent. I children the Philippine Chamber of ue to perform well far into the futureto become suggesting growing demand for space up. I experiences, believe every woman should tary shifted. I’m also a of Michigan. COO of Taubman Centers. Commerce in spite of a changing mall land-saw the luxuries many agents had, such as Somerset, But malls have that opportunity. be- exchange are thriving, mallsHowdestination student coordinator do the same. High-end I could He said an intricate interplay local I felt scape in the state’s wealthiest coun-and  Lakes CrossGreat and Twelve Oaks by meet the willdown on International turned older malls some getting the evolution of online shopI kept for the Council weathered tween ty, and across the state and country.ever,while the onslaught your plans for the company is ing have popularseveral and it was very What are Exchange (a nonprofit ball this year companies, wrecking Educational ping and changing demographics In fact, contrary to the end destines. How did you get involved in the insurance business?

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

MICHIGAN BRIEFS

INSIDE

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

CALENDAR

Audit: Michigan should better monitor jobcreation promises State auditors say Michigan should improve its process for ensuring that businesses receiving economic development incentives create and maintain promised jobs. An audit issued Wednesday says the Michigan Strategic Fund’s process for awarding grants and loans to companies is sufficient, while it is moderately effective in monitoring their compliance in meeting job-creation commitments. Auditor General Doug Ringler identified three “reportable” conditions, which are less serious. His report said the fund did not require businesses to give sufficient employee information so it could verify compliance, and it overstated the aggregate return on investment for the 2015-16 fiscal year. The Strategic Fund disagrees with many of the findings, saying its process for verifying compliance is “robust.” It said that since 2012, the incentives have created more than 26,500 jobs.

Communities ban marijuana businesses

More than 250 Michigan commu-

State partly complies with post-Flint recommendations, watchdog says

JAMES MACDONALD/BLOOMBERG

Some cities and townships have enacted temporary bans until the state creates regulations to govern the recreational marijuana industry.

nities have banned marijuana businesses just two months after the state became the first in the Midwest to legalize the drug for recreational use. Some cities and townships have enacted temporary bans until the state creates regulations to govern the recreational marijuana industry, MLive reported. The state Department of Licensing and Regulatory Affairs has until December to issue rules. Michigan voters in November endorsed recreational marijuana for adults who are at least 21 years old. At least 80 municipalities have reached out to law firm Dickinson

Wright for legal advice regarding recreational marijuana, said Jessica Wood, a lawyer in the firm’s municipal practice. “The majority requested ordinances to enable them to consider ‘opting out’ for now,” Wood said. “We don’t know how many have actually voted to opt out at this point, or how many may opt out now while continuing to take time to analyze the impact and understand what the new law requires and allows — in other words, to hit the pause button.” Many of the state’s biggest cities, including Detroit and Lansing, haven’t passed any restrictions.

Michigan environmental regulators did a better job reviewing potential changes in tap water sources or treatment in the wake of Flint’s water crisis, but they failed to fully comply with a recommendation to verify that utilities sampled the correct homes for lead, state auditors said Wednesday. Their report was a follow-up to a 2016 audit that said staffers in the Department of Environmental Quality’s drinking water office made crucial errors as Flint began using a different water source that would become contaminated with lead. The new report from Auditor General Doug Ringler said the agency improved its oversight and monitoring of local water systems that switch water supplies or treatment options, correcting what had been a “material” condition — the most serious finding. Three less serious “reportable” conditions were partially addressed, according to the follow-up report. Auditors again flagged the DEQ for continuing to rely on municipal and other water systems to certify that they meet sampling requirements, rather than independently verifying that the chosen homes are appropriate. The department said it would be

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impractical to visit more than 4,000 houses a year and inspect the pipes to see if they are made of lead. Auditors countered that the DEQ could randomly pick a select number of homes to visit. The agency responded by noting that Michigan’s new toughest-in-the-country lead rules, which were adopted following the contamination in Flint, require preliminary and final inventories of lead service lines and other components of community water supplies by 2020 and 2025. The department also said relying on water supplies to certify their sampling locations is consistent with other states in the Great Lakes region.

CORRECTION A Jan. 28 story about GreenPath Financial Wellness misspelled the first name of President and CEO Kristen Holt and should have attributed the nonprofit’s projected loss of $4 million in 2018 to costs associated with integrating all of its recent acquisitions, not just one of them.

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

HEALTH CARE

By Jay Greene jgreene@crain.com

School mental health services are expected to get a boost from new money the Legislature appropriated late last year after a year that saw a number of mass shootings in schools nationally. Many public school districts and school-based health centers are expected to tap into $30 million in new state mental health funds, funding that Debbie Brinson, as interim executive

Need to know

Mental health services funding coming to schools and school-based health centers in 2019 

 Lame-duck Michigan Legislature approved $30 million in funding, grants available  Effort to provide more mental health to students received more attention after mass shootings at Parkland, Fla., and Sante Fe, Texas, schools

director of the School-Community Health Alliance of Michigan, says is vitally important to address unmet needs at more than 1,500 schools. “Lots of kids at schools don’t have access to mental health services,” said Brinson, who also is CEO of Honor Community Health, a federally qualified health center in Pontiac. “Establishing mental health services in school health centers is long overdue.” Brinson has been working on the issue of expanding school-based health

centers, including school nursing and mental health services, in Michigan for the past 10 years. She has worked with such legendary health executives as Gail Warden, the former CEO of Henry Ford Health System, the late Paul Reinhardt, former state Medicaid director, and also former Medicaid director Steve Fitton and interim Medicaid director Kathy Stiffler. But it was the Florida school shootings in February 2018 at Marjory Stoneman Douglas High School in

GETTY IMAGES/ISTOCKPHOTO

Schools, health centers get $30M in state mental health funding

Parkland that escalated the need for school mental health funding, Brinson said. “The kids said we need to do something about it, and more than 100 went to the state Legislature for advocacy day” in May 2018, Brinson said. “It won’t prevent school shooters, but it will help identify kids with serious mental health problems. Right now we can’t do anything. It will help to have mental health services available.” SEE FUNDING, PAGE 18

PEOPLE

INFRASTRUCTURE

By Bill Shea

to state natural-gas alert

Jerry Green: A Super Bowl pressbox Consumers Energy investigates fire that led institution still going at age 90 bshea@crain.com

A single click of the shutter on Sports Illustrated photographer Walter Iooss Jr.’s Nikon immortalized Jerry Green forever. It was Jan. 10, 1969, and Super Bowl III was just 48 hours away. The scene was poolside at the now-vanished Galt Ocean Mile Hotel in Fort Lauderdale. The subject matter was brash and tanned New York Jets quarterback Joe Namath, reclining in his swim trunks and sandals on a chaise lounge chair, surrounded by a few sportswriters. Namath is smiling in the photo, his head turned to acknowledge some fans. He was on the verge of truly becoming the flamboyant “Broadway Joe” and the night before had delivered his famous victory guarantee. The 40-year-old Green is part of the scenery in what has become one of the most indelible images in not just Super Bowl lore, but sports history. “The picture is probably the most famous football picture of all the Super Bowls, and I’m in the back with a crew cut and hornrim glasses,” Green said. Two days later, Namath led his 18-point-underdog Jets to victory over the Baltimore Colts at the Orange Bowl in Miami, an upset that delivered a seismic shock that rat-

By Jay Greene jgreene@crain.com

DANIEL MEARS/THE DETROIT NEWS

Columnist Jerry Green in front of Ford Field in Detroit in 2006.

tled pro football. Green was in the pressbox that Sunday, as he has been for every Super Bowl for The Detroit News. Now 90, Green is one of only two sportswriters who have covered all of them, and he was in Atlanta last week to write columns for The News about Super Bowl LIII between the New England Patriots and Los Angeles Rams. He spoke with Crain’s by phone from Atlanta about his Super Bowl cover-

age streak and that day by the pool with Namath 50 years ago. “I regard myself as on a Ripken-esque streak,” Green said, referencing Baltimore Orioles’ shortstop Cal Ripken Jr.’s consecutive games-played streak of 2,632. “It’s pretty much the only work I do now during the year. I thoroughly enjoy it. I think the Super Bowls have been the defining portion of my career as a sports journalist.” SEE GREEN, PAGE 22

Consumers Energy Co. is still investigating the fire that broke out Wednesday morning at the natural gas facility at the Ray Township Compression Station in Macomb County, but officials believe the fire started outside of compression plant No. 3, the newest and largest of the three buildings on the site, said Garrick Rochow, the company’s senior vice president of operations. While investigators have ruled out foul play, Rochow said it is still too early to state a cause of the fire or develop a complete list of lessons learned or possible changes in operations for the Jackson-based utility. “We appreciate businesses responding to our call for action. It helped us weather the first 24 hours and we appreciate it greatly,” said Rochow. Starting Wednesday evening, more than 100 companies and thousands of customers statewide voluntarily reduced natural gas use after Consumers Energy CEO Patti Poppe made an urgent plea for help from the public. Early on, Consumers, which provides gas to customers in all of Michigan's 68 counties, was concerned the shutdown of the Ray

Need to know

 Consumers Energy executive gives explanation of how the fire at Ray Compressor Station in Macomb County happened  Fire, police and company officials still investigating why gas vented from large unit and how it caught fire

plant could trigger a systemwide gas delivery catastrophe. The Ray plant contributes a maximum of 64 percent of the company’s daily average of 2.5 billion cubic feet of natural gas to customers. Before gas can be put into the pipeline system, however, it needs to be compressed. The Ray station sits above Consumers’ largest underground natural gas storage area with a capacity of 41.2 billion cubic feet of storage. Overall, Ray can compress 117 million cubic feet of gas per day, reaching pressures of 1,800 pounds per square inch. Since Thursday evening, Rochow said Consumers has stabilized its supply of natural gas with the help of customers and other natural gas suppliers such as DTE, which pumped additional gas into the state’s interconnected gas pipeline system. SEE FIRE, PAGE 18

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Kresge kick-starts program working to break poverty cycle By Sherri Welch swelch@crain.com

Even before John was born, his mother cycled in and out of the Coalition on Temporary Shelter’s emergency shelter in Detroit. She came back to the shelter after she gave birth to him, and again and again throughout his childhood, with John in tow. Five years ago, just before COTS shifted to a family-centric model, John (not his real name) came back to the center by himself. He was 22 years old and struggling. COTS CEO Cheryl Johnson recognized him immediately, and he recognized her. “You can’t show shock,” she said. “But in my heart, I’m thinking I don’t want to celebrate.” John isn’t the only person who came to the shelter as a child and returned as an adult. Over the 28 years Johnson has led COTS, she’s seen the same story play out over and over again. “They’ll come running up to me to give me a hug and say, ‘Hey, remember me? I was here when I was a kid,’” Johnson said. They’re grateful they can come to the shelter, but Johnson said that inside, she isn’t happy to see them there. “I didn’t want them to come back as an adult,” she said. To end the cycle of poverty, COTS began working with parents and children to help them move to financial sustainability and on to a more stable life. Its “Passport to Self Sufficiency”

Need to know

JJKresge joins together five human

service agencies working to break poverty cycle JJAgencies to share $1.25 million in operating grants over two-year program JJCould produce collective plan to address barriers, find two-generation solutions

framework is offered to everyone who comes to the shelter. Through it, COTS coaches work with parents and children to set goals in five areas: family stability, economic mobility, education, career development, and health and well-being. The agency has plenty of stories of personal success of people who’ve obtained their GED, gotten a good job, completed college and hit other goals — all signs of social and economic mobility — and it’s measuring meetings, time to meet goals and attainment of goals. But it’s still developing an evaluation process to gauge the initiative’s success. It’s that type of work the Kresge Foundation is looking to lift up as it focuses on social and economic mobility for low-income Detroiters. The Troy-based foundation recently made $1.25 million in operating grants to COTS and four other local nonprofits working to accelerate social and economic mobility for low-income Detroiters through two-generation approaches: Arab Community Center for Economic and Social Services, Matrix Human

Services, Starfish Family Services and Wayne Metro Community Action Agency. The grants are part of Kresge’s NextGen Detroit initiative, the first place-based collaboration of agencies with two-generation approaches aimed at accelerating social and economic funding that the foundation is funding. The initiative is aimed at kickstarting a relationship among the local agencies. It will bring opportunities for leadership development, learning from national experts, national benchmarking and at the end of two years, individual and collective plans from the agencies for ending the cycle of poverty in Detroit. “The hope would be these organizations can start to realize some of the underlying barriers and opportunities that exist within their city and come together to create some type of movement to address these barriers,” in order to accelerate social and economic mobility for Detroiters living in poverty, said Joelle-Jude Fontaine, senior program officer at Kresge, overseeing both the Detroit and national NextGen programs. COTS continues to work with parents and children and provide referrals to other services like mentoring for those interested in certain careers, even after families have moved on to more permanent living situations and completed o goals such as obtaining a GED, getting a good-paying job or completing college. “You’re building a relationship of mutual respect and caring,” said Delphia Simmons, chief strategy and learning officer at COTS. “We know at the center of success for moving anyone forward ... is a relationship.” COTS hasn’t yet figured out when it should consider its work with each family completed, Johnson said.

Setting the agenda The Detroit cohort will meet for the first time on Feb. 7 through a session at Kresge’s Troy headquarters with representatives of Ascend at the Aspen Institute, a Washington,D.C.-based expert on two-generation approaches to bringing families to educational success and economic security. The NextGen Detroit initiative is aimed at both strengthening human services agencies working on

Getting proactive

vices agencies as they move further upstream in the work they’re doing in Detroit, Fontaine said. “It really gives these organizations the space to focus and to Delphia plan on upcomSimmons: Build ing changes in relationships. the human services landscape, to become more proactive rather than reactive,” she said. Will there be a tangible plan for ending the cycle of poverty in Detroit at the end of two years? “We’re going to see … but we don’t see this as a passive journey,” Fontaine said. The goal isn’t to just have the five nonprofits listen to national experts and other nonprofits; it’s for them to be actively engaged. And often, that leads to some type of action plan, she said. “In terms of how that looks in the end, we’re not going to prescribe to folks what that should be.” Ultimately, what Kresge is looking for is the group to form lasting connections and to become more of a network, Fontaine said. “They’re all accessing similar funding streams and ... some of the same systems. Why not think about how you can do it collectively? What are some of the strengths the organizations bring that they can kind of learn from each other?” The NextGen grant will help Matrix better coordinate the two-generation activities that it’s already doing across its program base, said President and CEO Brad Coulter in an emailed statement. “It will fund work to improve sharing of resources and strategies for helping our clients who range from children to teens, adults and seniors throughout the city of Detroit,” he said. Foundations convene nonprofits all of the time, but the NextGen Detroit initiative is different in that it’s very focused on breaking the cycle of poverty for two generations, Simmons said. “I think that narrow beam is going to allow us to be more impactful," she said.

The NextGen program is providing a boost to the five human ser-

Sherri Welch: 313 (446-1694) Twitter: @SherriWelch

Cheryl Johnson: Sees same story play out.

Joelle-Jude Fontaine: Address barriers.

two-generation approaches and accelerating social and economic mobility for low-income people, the key focus of Kresge’s human services grant area following a refocusing last year. Rather than funding one model and looking to replicate it, the program is identifying promising work at Detroit human services agencies, Fontaine said. “This initiative is really about partnering with the sector’s front-line (nonprofits) because we really believe they provide a central role in improving economic mobility,” she said. “What we found across the field is that organizations that are person-centered, data-driven and working to advance racial equity ... those are the practices that really seem to be improving outcomes.” And that work can’t happen in silos, she said. Working with parents and children simultaneously is most effective. You have to address issues at home as well as classroom mastery and performance, Fontaine said. Otherwise, “you’ve got a great program addressing the needs of the child but the overall situation of the child hasn’t been addressed.” It’s not a new concept, Fontaine said, pointing to the federal Head Start early education program and the holistic support it provides the whole family. But what is new is the need to infuse a sense of economic mobility into the work. “If you’re just focusing on early childhood education without looking at helping the family advance its socioeconomic position, the cycle (of poverty) could just repeat itself,” she said.

Citizens Bank survey: M&A appetite high By Dustin Walsh dwalsh@crain.com

With the economy still humming, middle-market companies expect an active year with mergers and acquisitions, according to a new survey by Citizens Bank. Of the 600 companies surveyed nationwide — 20 from metro Detroit — 80 percent said the strong economy has whetted their appetite for a deal and they expect one in the next 12 months. “There’s a ton of interest, but it’s a sellers market,” said Rick Hampson, Michigan president of the Rhode Island-based bank. “Valuations are still high, but those may start to walk back as many believe there will be an economic downturn in the next two years.” International deals are of most in-

“There’s a ton of interest, but it’s a seller’s market.” Rick Hampson

terest to respondents, with 52 percent indicating an international deal that would maintain current leadership while providing increased access to global markets is optimal. However, respondents want those deals in the North American market, as 58 percent of those respondents said Canadian firms are the likely target. The strong U.S. dollar is playing a role in buyers looking outside U.S. borders, according to 30 percent of respondents looking to buy this year. The technology sector remains the

highest likely M&A target, especially smaller, newer companies, Hampson said. “Interest is in certain technologies the buyer sees valuable or niche,” Hampson said. “We’re seeing more solicitation for these companies that are below the radar, smaller companies that wouldn’t be pursued before.” Buyers and sellers are benefiting from a still highly competitive banking market, with banks “clamoring to provide financing,” Hampson said. Despite rising interest rates, the majority of survey respondents said the current interest rates and debt-financing terms will have little impact on their plans. Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

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Proposal would update outdated rules for ads on buildings in Detroit’s central business district Need to know

By Kurt Nagl knagl@crain.com

The city of Detroit is set to consider a new ordinance for advertising in the central business district to replace outdated rules that were rarely enforced. The ordinance would create “sensible guidelines” for building owners, prevent an “over-concentration” of signs and promote more “aesthetically attractive” signs, according to a Friday news release from the city. The new rules are intended to give city officials more oversight and permanently snuff out the free-for-all mentality that flooded downtown Detroit with advertising banners in the past couple of years. The proposal, sponsored by City Councilman Scott Benson, was submitted to City Council this week and will be considered by the city’s Planning and Economic Development committee early next week. “I am very excited that this ordinance will bring long-needed order and equity to outdoor advertising on buildings in downtown Detroit,” Benson said in the release. Under the proposed ordinance, there would be a cap of 60 total wall advertising licenses in the central business district, according to the city. A first-come first-served system and five-year limit on licenses would be imposed, and there would be regulations on the size of advertise-

JJNew proposed ordinance submitted to City Council this week JJIt seeks to replace outdated rules that were rarely enforced JJProposed ordinance calls for limit on number, size and location of ads

“I am very excited that this ordinance will bring longneeded order and equity to outdoor advertising on buildings in downtown Detroit.” Scott Benson

CRAIN’S DETROIT BUSINESS

This ad for Rocket Fiber’s high-speed internet service was put up in 2017 on the wall of a building at Grand River Avenue and Bagley Street.

ments and where they are placed. In addition, the proposed ordinance calls for a system that would lessen regulatory requirements for smaller buildings. The city’s old code banned large advertisements on building walls altogether, but it was ignored by many building owners and largely unenforced by the city. At the end of 2017,

the city struck a deal with several business owners to remove illegal signs as it drafted new rules for advertising. Companies including Meijer, Shinola and Apple took down their ads, along with organizations such as the Lions and Pistons. Since then, rules for advertising have caused much confusion among building owners and city officials

alike. The most recent example is the iconic whale mural on the Broderick Tower, which building owners are seeking to cover with advertising. Even in a digital age, billboards and advertising banners are still big business — a fact recognized by real estate owners, city officials and advertising companies. Many ads were taken down after the late-2017 truce,

but the new ordinance proposal suggests facades in the central business district will again be dressed in banners. “This will be a boon to landlords and ultimately the city because of increased revenue, but perhaps as important, it will allow city officials to have more oversight to ensure that the signs don’t subtract from our attractive downtown aesthetics,” Benson said. Kurt Nagl: (313) 446-0337 Twitter: @kurt_nagl

Licensed Beverage Experience

In Your Corner.

KIRK PINHO/CRAIN’S DETROIT BUSINESS

Google is wasting no time laying its claim for more space next to Little Caesars Arena downtown. The company exercised an expansion option almost immediately after opening in November.

Google expanding its office next to Little Caesars Arena By Kirk Pinho kpinho@crain.com

Google is expanding its 29,000-square-foot office next to Little Caesars Arena. But by how much and when, and how many more employees the Mountain View, Calif.-based company is increasing by is not known. A source familiar with the deal said those decisions about the future of its presence in the new office building at 52 E. Henry St. next to the home of the Detroit Red Wings and Detroit Pistons have not yet been made. Google, which officially unveiled its new office in November, has exercised an option to expand beyond its current approximately 29,000 or so

square feet, according to a Detroit Economic Growth Corp. document. That space is on the third and fourth floors, the source said. It is expected to take more space in the second floor, although the exact amount hasn't been determined. The company currently has about 100 mostly sales employees in the office, which replaces its former outpost in downtown Birmingham. It moved from about 17,000 square feet in downtown Birmingham at Willits Street and North Old Woodward Avenue in a building owned by Boston-based International Real Estate Corp. “Google Detroit is loving being part of the city and their home alongside

LCA. Google is not able to comment further at this time,” said Sara Wurfel, a spokeswoman for the tech giant and vice president of public affairs for public relations firm Truscott Rossman, which has an office in Detroit and is based in Lansing. Eric Yuhasz, Google’s facilities manager for Michigan, told Crain’s in November that the Detroit office has capacity for another 25 hires and the lease with the Ilitches allows for more space on demand. An email was sent to a spokesman for Olympia Development of Michigan, the Ilitch family’s real estate arm. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

Contact Chris Baker at cpbaker@varnumlaw.com n

All areas of alcoholic beverage regulatory matters, including licensing and enforcement, wholesale, distributor and importer provisions of the Michigan Liquor Control Code Representing resorts, hotels, restaurants, retail developers, brew pubs and microbreweries

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Quicken Loans launches new Rocket Mortgage logo Michigan Retailers “When looking at the negative space in the O, many have said they see an outline of a person — an intentional nod to keeping clients at the center of everything we do.”

By Adrianne Pasquarelli Ad Age

Quicken Loans Inc. has a new logo for its Rocket Mortgage product, and there are no rocket ships involved. The Detroit-based mortgage lender, which debuted its online Rocket Mortgage platform three years ago, is refreshing the brand with a more streamlined logo and font. The new look will also roll out to Quicken Loans affiliates Rocket Home, formerly known as In-House Realty, Rocket Loans, and a new product Rocket HQ, which provides credit reports and financial advice to consumers. All companies are under the Rock Holdings umbrella. “We launched Rocket Mortgage to really differentiate a new, highly streamlined experience we had created for the mortgage industry,” said Jay Farner, chief executive of Quicken Loans, noting that the brand’s sibling companies have since developed the same type of experience for their products. “In an effort to make sure it was clear to the consumer, we thought it was important to have a new look and feel and one that’s familiar across all of these different companies and products.” Quicken Loans worked with New York-based brand strategy firm Lippincott on the updated logo, which includes bold black lettering and a red “O” in Rocket that is open on the bottom. That opening will pro-

QUICKEN LOANS ROCKET MORTGAGE

Quicken Loans Inc. debuted a new logo (top) for its online Rocket Mortgage platform. The old one is at bottom.

Need to know 

There’s no longer a rocket ship

 Detroit-based lender worked with New York-based brand strategy firm Lippincott 

Update provides new flexibility

vide the companies with maximum flexibility, Farner said. When Quicken Loans sponsors a PGA golf event in Detroit in June, the “O” will become a golf ball on a tee, for example. “When looking at the negative space in the O, many have said they see an outline of a person — an in-

tentional nod to keeping clients at the center of everything we do,” Casey Hurbis, Quicken Loans chief marketing officer, said in statement emailed to Crain’s Detroit Business. “Others have said they see the gauge of a speedometer to show speed or progress, or the keyhole of a door — one that we believe can be used to open up a host of new financial opportunities and freedom.” Lippincott was first tapped to work on the project in late 2017 following an RFP, according to Bogdan Geana, a design partner at the agency. Hurbis declined to disclose terms

WHO’S NEXT? KNOW SOMEONE WHO FITS THE BILL? Submit a nomination today by visiting crainsdetroit.com/nominate IN TH EIR

2019

NOMINATIONS CLOSE: FEB. 15 PUBLISH DATE: MAY 6

returns comb ined with about the social impac feeling good vestments t of your in— wasn’t enoug got a bad name. There h good on end. the financial “It used to be you’d weed alcohol, out the gambling and tobac stocks, and co then your would suffer performan ce ,” of screening he said. “Now, instea d do your dueout the bad actors, you best-in-clas diligence to find out s that do good stocks in companies things. Peopl it wasn’t possib e thought achieve marke le to do that and still t-rate return proving you s. We’re can.” Rogers serve Stanley calls s on what Morg an Champions its Impact Investing board to coach other . “I’ve been asked advisers speak with millennials on how to tional client and institu s values with about aligning their their invest said. ments,” he He also sits on the Michigan Foundations Council of vesting task ’ impact inthat coord force, a working group inates impac such found t investing at ations as the W.K. Kellogg Found ation, the Kresge Foundation, and Fisher Foundthe Max and Marjo rie ation. — Tom son Hender-

NOMINATIONS CLOSE: APRIL 22 Stella Sa fari, 26 PUBLISH DATE: SEPT. 2 Detroit Dire and Owner ctor, gBETA , Safari Bea uty

gone on to raise over $400,0 and include The Lip Bar, 00 in capital Bogobrush and Detroit Cellular EMT, Ento. In between, Safari runs hair servic a natural es from her decisi company that grew on to skip cals and go natural. “It’s the chemision and I get a to connect huge pason a very perso with nal level,” she women She’s into yoga and medit said. “it’s helpe ation — d me,” she said. She also coaches a girls cheer leadin and in the summer, runs g group school entrep a high reneurship program

“I lived a feminist I even kne life before feminism w what the word was.”

that bring s together young peopl from Detro it e entrepreneu and Cranbrook to solve rial “She was excepproblems. tional talent to blend in … able really well with the community,” said Martin Dobe vice presid ent with Invest r, senior In the future Detroit. the company , Safari hopes to grow capital fund and develop a ventu re that may focus products. Or on beauty on “I’m kind of women. driven by and passio ns around the mission beauty and women and technology ,” she said. Vickie Elmer —

By Ch

builders.

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

David Cowan,

“I needed to prove myself, which is why I wanted to bring thi s investme nt approach to the firm .”

’S DET RO

IT BUS INE

Detroit Partnership received the assignment of planning and launching Beacon Park, he met it with a mix of

feelings. In terms of size, scope, visibilS S // M AY 7, 2 ity and0stakeholders, 18 it was the biggest project he had ever taken on. But the opportunity to experiment and create something new overrode any initial apprehensions with excitement. After only three months of planning, DTE Energy-sponsored Beacon Park launched with a highly successful fourday grand opening in July 2017. The space continues to draw crowds, according to Cowan, with unique events like “Impulse” — an installation of light-up seesaws — as well as Detroit’s first Night Market series, outdoor spin classes, a “silent disco” and a large heated tent for screening movies. Beyond that, Cowan said, the park, a 1.5-acre green space at Cass and Grand River avenues, has acted as a catalyst for local development, bringing new life and vibrancy to the area — the new restaurant Lumen, for example, which opened in April and

unica

tiowho ns Inc As a native Detroiter grew. up All in the Green Acres and Midtown neighborhoods and on Grosse Ile, making the city more beautiful, fun and active is both a professional and personal goal for Cowan. “Downtown is a place for9all to enjoy and access,” said Cowan, who plans over 1,000 events and programs annually, hosting over 2 million people. “Ninety-five percent of our events and programs have been designed to be free and open to all, which has resulted in a vibrant cultural life across the downtown.” In his position, Cowan manages more than 400,000 square feet of downtown public space — including Campus Martius Park, Capitol Park, Cadillac Square, Grand Circus Park, The Woodward Esplanade, and Spirit of Detroit Plaza — and a multi-million dollar budget which combines earned and contributed revenue made up of over 40 local and national corporate sponsors and media partners. — Laura Cassar

69 a ye ar

. rights res erved

Zain Ism

ail, 27

Grace Hsia, 28

ic support with Winds services or before Ford Health comin System, alway at Henry Henry Ford in Decem g “home” to work in the s wanted to hospitality ber 2016. Ismail works growing up industry. But in the system in prise projec ’s entercross-borde Windsor as the son of r nurse and a has worke t management office former obstet rics unit direct - the oncol d on specialty initiat . He heard daily or at HenryAfter Ford, ogy,targets, missing revenue theinU.S. and abroad — a chalhe orthopedicacrossives also and stories about s and heart vascu medicHsia It was nearly lar servic Grace ine. had to be honest with lenging feat made more complex by es lines. ample, he helpe ago, shortl ter Henry Ford 10 yearsherself ex-and health and safety regand the direction of d to her strictFor y afFDA afwithmedic ine walk-in establish a sports field hospit opened its West Bloom startup venture LLC. al, that Ismail clinic inulations. - Warmilu It has subsisted mostly on is being Novi van Grinsven, metlearned Gerard that youexpan ded “I or acros die grants,that as Hsia and her team of four But one live and forme president of the hospit of the most s the system. al r executive based on your profitability,” intere Hsia transition of Ismail’s work sting parts the company from a bootRitz-Carlton with the is as a volun hotel compsaid. “We had tofour humble ourselves.” strapping organization teer with startup to a sustainable opIsmail’s mothe any, throug s that h r, Rebecca. Hsia, helperation. 28, resour founded ces andWarmilu Ismail, then build conne to bridge 17, asked van (“warm” and “Itween love you”) 2011 as ctions After coming Detroitinand for advice up short of the beGrinsv about a career en Rise Windsor. They ainmaterials Assetengineering industry. Van are sales goal for last year, Hsia the hotel science and Developme $100,000 Health Hacki student at how health Grinsven told Windsor University ofDetro Michi-nt; was forced ng to re-strategize. The chief care and hospit him about thesor it; Detroit WindMedH similar skills ality requir gan. The company ealthand designs manoperating officer, president of busiInnov — e Fast Forwa ation Cluste a commitmen primarily empa r; and rd Medicwarmufactures thy andnonelectric infant ness development and two medical al Innovation. t to Ismail is the Ismail went service. ing blankets and reusablefound heating doctors on staff were cut. er to of branc hospit the Windsor h ality schoo the University l at which of RISE Asset Devel Instead of folding under pressure, of Windsor packs. opment, provides mento a business took peopl course with and also Warmilu’s mission is to manufacHsia was determined to pinpoint the rship to disabl e to help Ann Snowd chair of the ed en, distribute World Health ture start a and products problems ness througitsthem and lift the business back Network, who busiInnovation h low-interest small busi repeated the grams health care proadvice: leader or connections withloan pro and business s to suppo the same cloth. hospitality are made rt of efforts . He would their employment It was an aha like to open moment. “I chapter. a Detro could take realized it everything “Hacking I have learne I with hospit ality d cross-borde Windsor Detroit is the take it to health and innovation and only r chapter where care,” said Ismail Amer graduation, . After gethericans and Canadians we have he worki ,” sistant with worked as a research as- organ said Ismail, who is one ng toSnowd izers. “Hack national Centre en at the Ivey Intering is so succeof the and really and then spent for Health Innovation ssful promo four years at Windsor Detro tes innovation.” The ton Distric Leam it ingchapt t Memorial er is sored by TechT Hospital in own Detroit co-sponAlliance in & WEtech Windsor. — Jay Greene

Founder, Warmilu

VISIT T HE NE AND IM PROVEW CRAIN D SDETR O

cember deadline, the SE canvassers got E a propLLS, 1,000 Detroiters signed up forBI erty tax exemption for individuals living below the poverty line, she said. — Chad Livengood

IT.COM

Monica Rodriguez, 28

Senior Con Services, sultant , Strategic Sup Henry For d Health Sys port Zain Ismail tem , a senior consu strateg ltant

Private health di attorneys repres en re taxpayers ctor Nick Lyon ha fend a hi more than $1.6 m illi gh Rick Snyd -ranking mem ber tary man er’s cabinet fac ing i slaughter from Fli charges nt date hasn ’s water crisis — ste and h ’t ev That nu en been set ye amount mber is only a t. sm th ter crisi e state has spen all p t on Flin s-r mid-Aug elated legal bi lls ust, the state ha . Thr million, d spent wh $ have cu ile three state departm rrent ca pacity in co to make ntracts Need that total to know top $34.5 accordin million,  State g ha lic reco to pub- $26.5 mi s spe rd llion on piled by s com- private law Crain Flint wate firms Three da ’s. r ys crisis after a Genese e County civil and criminal judge cases Lyon to ordered sta  $1. 6 million last mon nd trial th suspected for the spent on state wa- health chief Nic ter-related k Lyo de n's ath criminal s of two Flint-are elderly defense a men ,  $3.55 the state’ s Admin mi - budgete llion istrative Board in d for - Lyon's creased de th tract for e con- manslau fense in ghter case Lyon’s primary defense attMorAne Ra 14 CRAIN’S DETR O pi I Tds B U S I N E S S // Y 7ys , 2018 firm at $1 million Willey & Cham the Grand to berlain by The state $2.75 million. TWENTY IN THEIR 20S Departm Human en t of Health Se and in charge rvices, which “That Lyon re told us Laura Grannemann, 25 main has addi of while facingthat direct prosecut s tional co ion, Vice President, Strategic Investments, Quicken Loans each ntractsoutreach withInc. of tw $4 o 00 works, and ot hecompa,00we to keep leads the Detroit r law firm 0 Laura Grannemann has approached works, and we should be doing more Grannemann him outotkeep should be s work ny’sw philanthropic efforts blight in Detroit like health officials ap- of this,” she said. La in oflongpr doing PLLC in moregof in homes and boostison Devising strategies to stabilize and time Detroiters proach an epidemic — by knocking on — Bu Caled onia and home that are critical to creating turn around neighborhoods marred by Ny doors to find the problem. amvalues this.” rsch fu ku dzdata Chartier for lenders in a Grannemann uses that analogy to disinvestment, abandonment, foreclo- comparable sales a PL C inwere & Thwhere La residential mortgages describe the program she has crafted sure and poverty is the focus of city e $3 ns ing. .55 a few to fight the spread of Detroit’s foreclo- Grannemann’s work at Quicken Loans.onvirtually nonexistentm illiyears ago. “Ninety-five “When ’sIncrNovember budgete iminal2017, theonQuicken sure-induced blight, by reaching out to on Grannemann has risen rapidly inpercent I came d for Ly fenseFund Loans Community de Investment homeowners before they lose their side Dan Gilbert’s mortgage companyand in of our politicatollyscale board here, the foreclo- a high-st homes over an unpaid tax bill. in four years since she came to Detroit spent $500,000 akes tin events and was told ged bycrim sure-prevention project The East Lansing native’sIstrategy is forI an alternative spring break while br a ou ght by outreach inal case programs had to work hiring 450 Detroiters through 35 comstarting to yield promising results. student studying international develAt torn Schu ettegroups haveGrannemann, munity to canvass the ey city andGene vice president stra- opment at Georgetown University. been sixofmonths is se ra enof 65,000 l Bill on the doors properby lon tegic investments Loans obseknock designed to for Quicken here and “Laura is the kind of person people rver gti s m ties that are chronically behind in not only follow, but the kind of leader Inc., organized a canvass last summer e Lans as an un be free and figure it out. pensproperty tax payments. They reached of 5,000 homeowners to find out why who receives loyalty because trustworpr e tax ecedented ing open My main thiness role is in her DNA. She sets the bar the of 65,000thpa home April. they to wereall, behind on taxes and educate yeinrearly mon exwhich has is to monitor ey. In a few weeks before the mid-Dethem on how to keep their homes. high for the team around her — a true

resulted in natural born leader,” Gilbert wrote in a The hands-on approach helped the project 2,500 homeowners get onbudget payment and letter nominating Grannemann for a a vibrant plans — and foreclo- Crain’s Twenty in their 20s recognition. cultural lifeoff the county’s schedule and As co-founder of the Quicken Loans sure auction list, Grannemann said. across the sure Community Investment Fund, “That told us that directmake outreach downtown.” everyone is on the same page.”

Manager, Detroit Promise Path, Detroit Regional Chamber of Commerce When Monica Rodriguez hires staff ers tuition and fees for full-time colfor Nippon Sushi Bar, the Bloomfield lege and university students from Hills restaurant she owns and runs, Detroit. As the manager of the Deshe is reminded of the importance of troit Promise Path, her job is to make her other job, encouraging and sup- sure those students attain their deporting Detroit students to complete grees. She manages five coaches who “Hacking community college degrees. help students manage issues, comWindso cross-bord Det “Almost neverr is a degree roitearned” and their mindset. The Deis the plications er chapte only Americans by applicants who rlist community troit Promise Path has expanded wh ere we hav and classes. “Any Can of the people at fromean initial cohort of 400 students together.college adi ans wor Hac the restaurant have been onekintogmore than 1,500 students, and an kingcould really proof is so successfuearly my kids.” mo impacts analysis by research tes l and ova Rodriguezinn works at the tion Detroit Refirm MDRC shows significant in.” gional Chamber of Commerce on the creases in enrollment and perDetroit Promise, a program that cov- sistence.

clivengo ad Liveng od@crain ood .com

28 crainsde troit.cPublic Spaces, Director, Programming, om Vo contents 34 No. copyrighDetroit l. Downtown Partnership 35 $5 t 2018 by a co Crain Co When David Cowan of Downtown now employs mm over 50 people. py. $1

CRAIN

RNME

Flint wat legal bills could top $34.5 mil

PER

rs, 28

Pay-to-p adds to la P Genera o l wo GOV E

TWENTY IN THEIR 20S

John Roge

Financial Adv Rogers Fina iser, The Jbara and Morgan Sta ncial Management Group, nley

4 0 under 40

20S

afrank@crain.com

P O RT

Their ra w mater ials may steel an be d co er cables ncrete, or pow, or scra p metal. Some us e spread sheets, or sensitive neg simple sw otiations, or eat. They’re building the actual build ings that w define D etroit’s sk ill yline for decades to come. They’re building their ow n businesses, or build ing up th busines e ses they ’ve been hired to lead. Th ey’re building durable, supportive com munitie s. An they put people ba d as ck to work, ge t th and help em into homes , the next generation grow they’re bu and thrive, ilding m etro Detroit’s future. We thin k you sh ould kn who they ow ar stories st e. Read their arting on Page 8 8.

NEWSPA

TW EN TY

By Annalise Frank

The Michigan Retailers Association’s president and CEO will be replaced by his son when he retires in August. James Hallan, 66, plans to step down Aug. 26 after 34 years with the Casey Hurbis statewide association, according to a news release. of the partnership. His 36-year-old son, William Hal“Innovation, speed and client lan, currently executive vice presiservice have always defined Rocket dent, chief operating officer and Mortgage and Quicken Loans,” general counsel, would then shift Hurbis said in a statement. “Mov- into the role Aug. 27. ing away from the visual image of The Lansing-based organizathe rocket allows us to showcase all tion’s board of directors named of the ways we offer value to our cli- William Hallan the next leader as ents, not focusing solely on speed.” part of a succession plan estabThe new logos will begin appear- lished three years ago, the release ing on company websites and in said. advertising over the next few weeks. James Hallan is also CEO and Quicken Loans is planning a new president of Retailers Insurance ad campaign this spring, but the Co., which MRA created in 1981 as company did not plan to advertise a self-insured fund to give “lowAronso n: ‘I wouer-cost, quality workers’ compenin the Super Bowl. The lender aired ld do an ything t to retailers, acBig Game spots in 2016 and 2018. sation insurance” o keep it in Fernd In September, Quicken Loans cording to its website. ale awarded its $300 million media acJames Hallan first stepped into ’ Page 4 count to New York-based agency the MRA as general counsel in Universal McCann, following a 1985, then president in 1989 and SECEO competitive review. PTEMBin 2008, the release said. He ER 3 9, 2018 Detroit Business attended -Ohio | crain Wesleyan University sdetro S P—ECrain’s it .com C I A contributed to this report. and the Detroit College of Law. L RE

They’re

We need your help finding Southeast Michigan’s next real estate moguls, Fortune 500 CEOs, industry innovators and community leaders.

Association president to retire, son to take helm

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

PAGE 33

Meagan Ward, 27

Victo

Co-Owner, Femology Detroit; Owner, Creatively Flawless

Vice Pres Real Esta

Meagan Ward settled on potato stir-fry and raspberry smoothies. The entrepreneur rushed home on a Monday night after a full day at Femology, Detroit’s first women’s co-working space. She hurriedly picked a recipe off Pinterest an hour Herentre before two younger women entreother side gig fills her “creative “It’s good buckets.” Rodriguez photographs bapreneurs showed up to talk careers work. I do bies who are just a few hours old and and relationships over dinner. usually still believe “That’s key — mixing personal andat the hospital. She manages everything by being professional,” who quit education issaid Ward, 27, really organized, prioritizing people day job in 2015 to start wom- her children and her wom theher tipping and aespecially en-centric branding company called team. “I really regulate my own conpoint — the Creatively Flawless. “Youtributions know how and my own give and my difference take,” she said. “Am I meeting my they say youto can’t mix personal and these own standards? Is this filling me up business? It’s not true for women.” in a way that is meaningful?” students.” Ward founded Femology to con conShe attended University of Southern nect the sorts of women and clients California as a first-generation college with whom she chats about scaling, student. “I didn’t know what a major building strategy and visual is,”branding. she recalled. She earned a master’s She and co-founderdegree Ashleigh in education in urban pedagoBrock have had 50 members andUniversity aim gy from of Michigan in 2013. an incredible motivator of to grow to 75 by July, their “She’s one-year young people,” mark. They plan to move within a said Jim Jacobs, reyear from 350 square tired feetpresident to a of Macomb CommuCollege. — Vickie Elmer 2,000-square-foot space nity that’s more open and allows them to add features their members want: A computer lab or designated photoshoot room, for example. Femology provides the usual shared workspace amenities. But it’s I had to do better,” Hsia said. also an extension of Ward’s longtime “How do you Then came a breakthrough. Late in in business identify themission to pull women March, Warmilu received FDA cleartoward ance hosting to market and sell its warming problem, how do each other, from lunches while at Western Michigan packs in the U.S., clearing a critical you identifyUniversity the to creating support orga hurdle itorgadidn’t expect for at least anmetrics andnization how do other year. Those credentials make it The Powerful Women and far in easier for the company to distribyou do better? speaking on empowerment Tbilisi, ute in different countries now. The That’s whatGeorgia, I hadfor the U.S. Embassy. company also won a $50,000 grant on an offi offito do better.” Her name now appearsfrom the Atlantic Pediatric Device cial list of expert speakers on whom Consortium. embassies across the globeHsia can call. said the FDA clearance will know how But there’s still empowering change to thebe course “You for Warmilu as it done in Detroit. Ward met onetoward of thesustainability. looks saidyou can’t they She say up. She realized there needed toshe be hosted she working with Doctors Without mentees for is stir-fry, mixdevice personal and more of an emphasis 22-year-old on developing a to try the heating and Alexis Wilson,Borders after Wilson sales strategy and building a pipeline talks with several health care It’s not business? sought space at Femology is lastinsummer. of customers. companies. The company is also since then, (Ward) would true for for women.” “How do you identify “Ever the problem, looking to hire consultants sales, randomly send me opportunities” how do you identify the metrics and business development and producand got her a major newtion. client, Wil-Nagl how do you do better? — That’s what — Kurt PORTRAITS BY JACOB LEWKOW FOR CRAIN’S

“It’s a b a curse a Obvious more ex having t same tim son said. “I got this huge, amazing company (as a client) because of Meagan ... “I texted her and asked if she would mentor me. Whatever time she had, I was willing to take. She was like, ‘Absolutely. We can totally do this.’” — Annalise Frank

Tori Manix g real estate fam her own path in The 26-yearSouthfield-base Estate Investme front lines of the Detroit efforts a

PORTRAITS BY JACO

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

Outlier Media hires CEO in expansion of service journalism efforts By Annalise Frank afrank@crain.com

Detroit-based journalism organization Outlier Media, which sends information to city residents via text message, has hired a new executive as it seeks to ensure long-term sustainability. Candice Fortman joins Outlier from Detroit public radio station 101.9 WDET, where she is marketing and engagement director. She starts Feb. 18 as Outlier’s chief of engagement and operations. Despite the nontraditional title, Fortman is taking on a chief executive officer role. Outlier founder Sarah Alvarez will continue to lead journalistic coverage and oversee news products, while Fortman will head up fundraising efforts, sustainability and organizational direction, Alvarez told Crain’s. Outlier Media sends personalized information by SMS text message to Detroit residents on housing and utilities issues, such as if a rental property has been inspected or has back taxes, according to its website. The team also uses conversations with residents to fuel more in-depth watchdog reporting. “My job is to help execute a plan that will ensure Outlier’s stability,” Fortman said. “To really come in and put foundation around the organization. Sarah (Alvarez) has been working as a one woman show for a while

Need to know JJCandice Fortman will join Outlier from

WDET

JJOutlier founder Sarah Alvarez to still

head up journalism side

JJFortman to fundraise as organization improves tech and seeks new media partnerships

“We still want to be a very lean organization because there’s no pot of gold at the end of the news rainbow … We will always stay small and stay local.” Sarah Alvarez

Candice Fortman: To ensure stability.

Sarah Alvarez: Will continue to lead coverage.

and then was able to bring in another data journalist, (Katlyn Alo Alapati).” As a Detroiter, Fortman said, she saw importance in Outlier’s community need-based approach to reporting. For Alvarez, 41, it’s a chance to focus in on reporting and bring on someone who’s “strategic” and “creative” about news industry difficulties while also being “so dedicated to the end user,” she said. Outlier, founded in 2016, is funded through philanthropy. Its budget was

around $200,000 in 2018, Alvarez estimated. She said she wants to grow that to around $300,000 in 2019. The organization’s fiscal sponsor is Columbia, Mo.-based nonprofit Investigative Reporters and Editors. It has also received grants from the Community Foundation of Southeast Michigan, News Integrity Initiative in New York, Washington, D.C.-based Democracy Fund and the Miami-based Knight Foundation. Outlier started a partnership with newsletter-based media startup Detour Detroit in August. Detour gets access to what Outlier is working on, and Outlier does some exclusive reporting for Detour, Alvarez said. Outlier gets 20 percent of Detour's membership proceeds. Alvarez also partners with WDET; the two media organizations are taking on a joint reporting fellow starting

in February. Outlier also worked with a half-dozen freelancers last year. Fortman will be pursuing funding outside philanthropy. Outlier could collaborate more with other news organizations, for example. And Alvarez said she gets requests for consulting work with those looking to start similar efforts elsewhere. They also plan to hire an accountant. “We still want to be a very lean organization because there’s no pot of gold at the end of the news rainbow … We will always stay small and stay local,” Alvarez said. Switching to a new texting system Feb. 12 should give the media organization better user interaction capabilities and more metrics to measure its success, Alvarez said. It will transfer from messaging platform Groundsource to a yet-to-be-named company. The monthly cost will rise from $500 a month to $1,500. At that time, Outlier would also likely start advertising with signs in communities. Outlier interacts with around 200 residents a week. It sends out 5,000 texts a day, but many numbers are offline. Its eventual goal is to provide information to 10 percent of residents, according to Alvarez, in a city of around 673,000 as of 2017, according to the U.S. Census Bureau. Annalise Frank: (313) 446-0416 Twitter: @annalise_frank

Gentherm finalizes $47.5M sale of industrial test business By Kurt Nagl knagl@crain.com

Thermal management technology company Gentherm Inc. has finalized the $47.5 million cash sale of its industrial test chamber company as it ramps up its climate control auto seating business. The Northville-based manufacturer sold Cincinnati Sub-Zero to Weiss Technik North America Inc., based in Grand Rapids, as part of Gentherm’s plan to divest its industrial chamber business, according to a Friday news release. Cincinnati Sub Zero manufactures environmental test chambers with thermal, vibration, humidity and altitude solutions, according to its website. It has 150,000 square feet of manufacturing space spread across one building in Sharonville, Ohio, and one in Sterling Heights. The company operates in the automotive, aerospace, aviation, defense, medical and energy industries. Weiss Tecknik North America is under the umbrella of the Weiss Tecknik Group of Cos., which is a division of the Schunk Group, based in Germany. Gentherm announced in June its intention to sell Cincinnati Sub Zero and exit the industrial chamber business as part of its “focused growth strategy,” the news release said.

Trinity Health to close Ann Arbor senior living facility Huron Woods By Jay Greene

jgreene@crain.com

Livonia-based Trinity Health Senior Communities is closing the Huron Woods in Ypsilanti continuing care facility April 30 when it plans to move services to Glacier Hills, another Trinity facility in Ann Arbor, officials told Crain’s. The consolidation at Glacier Hills in Ann Arbor is just one of several other changes expected to take place at many of Trinity Health Senior Communities’ 26 locations in Michigan, officials said. In a WARN notice to the state of Michigan, Trinity said it would lay off 115 total employees, according to a Jan. 21 letter to the Workforce Development Office of Talent Policy and Planning. Trinity said it will work with Huron Woods employees to find vacant positions at other facilities in its system. Jobs affected include administrators, nurses, social workers, environmental assistants, cooks and wellness assistants. Eve Pidgeon, Trinity Health’s manager of communications and public relations, told Crain's that operations will relocate to Glacier Hills, less than five miles away in Ann Arbor. Plans for updates and renovations of the new location to be called Huron Woods at Glacier Hills are underway, she said. “Teams there look forward to welcoming residents,” Pidgeon said in an email. “The programming and

Need to know

JJTrinity Senior Living Communities to

close Huron Woods senior living facility in Ann Arbor JJPlans to consolidate services with Glacier Hills facility in Ann Arbor JJAt least 115 employees to lose jobs, but will be offered other open jobs in system

“We are pursuing similar consolidations of senior communities in other markets with the intent of combining each respective senior communities’ greatest strengths to best serve area residents through a single community...” Steve Kastner

experience will remain consistent with the high standards Huron Woods residents and their families have come to expect.” But changes at many facilities within Trinity Health Senior Communities are just beginning, said CEO Steve Kastner. “We are pursuing similar consolidations of senior communities in

other markets with the intent of combining each respective senior communities’ greatest strengths to best serve area residents through a single community — while eliminating service duplication and self-competition in our markets,” Kastner said in a statement to Crain’s. “Instead of using our energies to compete with ourselves in a given market, we will be focused on creating more vibrant, full-service communities that offer area residents a wider range of residential and service options, along with new opportunities for creative, educational and personal pursuits,” Kastner said. No further details were available on how many or which ones will be consolidated. Trinity Health Senior Communities operates 26 senior facilities in Michigan, the majority located in Southeast Michigan, the Thumb and Grand Rapids area. Each facility offers different services that may include independent living, assisted living opportunities, short-term rehabilitation, long-term care or specialized care such as memory support. Nationally, Trinity, which owns 86 hospitals in 22 states, has 115 continuing care facilities, and home health and hospice programs that provide 2.8 million visits annually. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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OPINION COMMENTARY

EDITORIAL

Chemical Bank deal is a turnabout for Detroit I

t was a strange feeling. The announcement had a familiar ring, but everything was different. “Bank’s headquarters to move, but will maintain strong local presence.” That was the headline in Minneapolis last week when the announcement came down that Chemical Bank would combine with the hometown TCF Financial Inc., and the headquarters would be in Detroit. It was the same headline Detroit saw in March of 2007. The opening sentence of Crain’s first word of the move read: “Detroit-based Comerica Inc. announced Tuesday morning that it would move its headquarters to Dallas in the third quarter of this year, but it said it would maintain a ‘significant presence in Detroit.’” Over the years, metro Detroit A corporate has seen a lot of that kind of news. The list of corporate moves and headquarters has deals that shifted centers of spinoff benefits for M&A power out of the region is long: a region. They hire names like Kmart, NBD Bank, Pulte Homes. more contractors The Comerica example is inthrough local structive on what such a move can connections. They mean even when the old company still has a big presence. have a huge Simply put: Location matters. multiplier effect. Where decisions — including loan decisions — are made, where the executives calling the shots sit and where they socialize, all of that matters. A corporate headquarters has spinoff benefits for a region. They hire more contractors through local connections. They have a huge multiplier effect. Federal economists estimate that for every corporate headquarters job, 2.5 jobs are created to support that job in the surrounding region. Detroit can be thankful that it has such a strong booster in Gary Torgow, the Chemical Financial chairman who along with CEO David Provost has rolled together a top-50 bank nationally from a single-branch, $10 million start. (We suspect their longtime shareholders are thankful, too.) Through more than six months of negotiations with TCF, everything was on the table, with one exception: “There was never a doubt — we weren’t doing anything if it wasn’t headquartered in Detroit.” Torgow said. It may be more than boosterism. Sure, the City of Detroit has moved accounts to Chemical. But Detroit is at a place now — a rebirth of a great American city — that others want to be part of. And people who know business see the city as a place they can grow. This is the sort of move that can create its own momentum, inspiring other companies to at least take a look at Detroit when they might not have before. It sends a powerful message that Detroit is not only open for business — it’s on the move.

Help for homeless more than just a phone call away

n the way home from work last Tuesday around 6 p.m., I was surprised, given the frigid temperatures, to see a woman standing on a corner at Mack Avenue and the I-75 service drive. It was dark out, and the temperature hovered near zero. She was bundled up from head to toe with a scarf across her face, leaving only her eyes exposed. She held a sign asking for help. Cash can only go so far. I knew this woman wouldn’t make it through the night on the streets, so I grabbed my cell phone to call for shelter on her behalf. I was hoping to make that call before the light changed, but I didn’t know whom to call. And I’m a nonprofit and philanthropy reporter. The region needs a single number to call to help the homeless, one that’s widely promoted and easily remembered. Earlier in the week, I retweeted the city of Detroit’s video which included not one but three numbers to call if you are homeless and in need of help. So I quickly got onto Twitter, found the tweet and started dialing the first number. I wasn’t sure which agency or location I reached, but I got voicemail and left a message about the woman standing on the service drive. I hung up, wondering if the voicemail would get prompt action given the influx of people into local shelters and warming centers. Immediately, I thought about United Way’s 2-1-1 health and human services hotline and dialed that as I headed north on I-75. Due to high call volumes, I was placed on hold. I heard that message three times before hanging up and debating whom to call next to try and get this woman help before she left that corner. Fortunately, the traffic slowed and temporarily stopped ahead of me. I grabbed my phone, jumped back on Twitter and dialed the second number on the city’s tweet. The third time was a charm. I was greeted by someone at

Detroit Rescue Mission Ministries, and we talked about the woman I’d seen. Given the nightly sweeps Detroit Rescue Mission, Cass Community Social Services and others were doing of Detroit streets to get the homeless into temporary shelter, the man who answered the phone explained that the agency knew the woman and she wasn’t in need of shelter. She was a frequent panhandler on the corner. I thanked him and hung up. But I continued to think about the number of numbers out there to help the homeless. In an attempt to help get people sheltered in this deep chill, the city provided numbers for three providers: Cass Community Social Services, Detroit Rescue Mission and Lakeridge Village, a nonprofit, transitional housing provider contracted by the city to host a warming center during the arctic weather that descended on Michigan and other parts of the Midwest. There’s also the Coordinated Assessment Model, or CAM, call center number that many of the homeless know, according to the Rev. Faith Fowler, president and CEO of Cass. The problem is, most others have probably never heard of it. CAM is the intake system to refer the homeless in Detroit, Hamtramck and Highland Park to a local shelter with an open bed. Administered by Southwest Solutions, it meets with people who come to or are brought to one of three access sites and conducts assessments for shelter and housing referrals. CAM also goes out to local shelters to meet

with the homeless who can’t get to the dedicated intake sites. So, there’s the CAM number. The homeless population might know it by heart, but then again, maybe they don’t. And the public certainly doesn’t know CAM’s number or even to look for it. Then there’s the 2-1-1 call center United Way provides to link people in Wayne, Oakland and Macomb counties with emergency services such as shelter, food and utility assistance, around the clock, seven days a week. Lathrup Village-based South Oakland Shelter gets a large number of referrals for its rotating shelter through 2-1-1, said Ryan Hertz, president and CEO of SOS and Spero Housing Group and acting president and CEO of Lighthouse of Oakland County. “When it comes to a single number to call for help and to get referrals, 2-1-1 works well,” he said. “Beyond referrals, it would be incredibly challenging to have one number coordinate actual shelter intakes given the wide variety of eligibility requirements, intake processes, capacities and more of our various shelter organizations across the region.” On Tuesday, United Way of Southeastern Michigan tweeted out that it has partnered with Lyft to offer free rides to shelters this week and pointed people in need to the 2-1-1 call center for help. Gov. Gretchen Whitmer was also pointing people in need of warm shelter to call 2-1-1. The Michigan 2-1-1 website offers links to emergency assistance, including community shelters, but that is only helpful to the homeless if they have access to the Internet. But not everyone is on the same page, and it should be streamlined for people in need, assuming they can even access a phone. It was tough for me to find the right number or best number to call, and I wasn’t even in danger of freezing.

the tallest building in Detroit. He will generate a massive amount of wealth through all of his investments in the city. Good for him. After Detroit’s bankruptcy, we had the benefit of a new mayor who knew how to run government like a business. You know, the simple practice of spending less than you’re taking in. It also helped that we have one of the most generous communities in America. Think of the Ford family and their contribution by returning the Lions to Detroit with Ford Field. Now the company — and family — are back with a massive investment in Corktown. Same goes for the Ilitch

family and their development around The District and the Gores group deciding to move the Pistons downtown. Will they make money? Sure. But they could also make money outside of Detroit. We have a long list of people who have invested in and contributed to our comeback. In philanthropy, consider the William Davidson Foundation, created by the late owner of the Detroit Pistons, and the Ralph C. Wilson Foundation, created by the late owner of the Buffalo Bills. Each has pumped millions of dollars of grants in the city, too. It’s important we don’t take any of this for granted. Not saying we can sit back, but it’s important to reflect.

SHERRI WELCH swelch@crain.com

Building the best Detroit I

’ve been in Detroit my whole life. I left for university but came back to start my career in this city more than 15 years ago. And the Detroit I see today is absolutely the best Detroit in my lifetime. I’m guessing a lot of people could say that. I know some longtime Detroiters may not agree. Yes, there’s hard work to do in education and neighborhoods. But we need to remember where we were 10 or even 20 years ago. Last week, the Detroit Regional Chamber announced Dan Gilbert will speak Feb. 28 at its Detroit Policy Conference, the event created to focus solely on the city as a balance to the broader topics covered in the an-

KC CRAIN Publisher

nual Mackinac Policy Conference. Dan Gilbert. It still amazes me that a single person could make such an impact on our city. He has critics. Why should a billionaire get tax credits? Others say he isn’t doing enough in Detroit neighborhoods.

I’m not sure that’s his job. Nevertheless, he actually has teams of people working to prevent foreclosures, do housing rehab and help Detroit public school students learn new skills like coding. In 2010, when Detroit — and the country — were coming out of the worst recession since the Depression, Gilbert bought his first downtown building. Quicken Loans was in Livonia, with offices all over the metro area. He brought all employees downtown, making a big bet on Detroit. He saw an opportunity to acquire massive amounts of real estate at low cost. When those bets paid off, he doubled down. He’s now building

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

LETTERS

State needs longer-term beds for psychiatric care To the Editor: Thank you for Jay Greene’s Jan. 27 stories on inaccessibility of beds in private psychiatric hospitals and psychiatric units in community hospitals. Michigan needs to do much better on this issue. But there is another related matter where Michigan must do much better. When my organization surveyed Community Mental Health programs five years ago, the average length of stay for clients in community beds was six days. That is not enough to assure stability of severe mental illness cases (and the average today could be even lower). So it’s not just finding a bed, which is difficult, but when a bed is found, will length of stay be sufficient for meaningful progress? This makes the state-operated psychiatric hospitals critical. They are the best hope for intermediate and longer-term hospital care. Yet we only have four such hospitals remaining, and they have lengthy waiting lists, in part because they are filled with forensic (criminal-involvement) cases as the state’s Forensic Center is too small to handle all such cases that exist. The Treatment Advocacy Center, a national group based in Virginia, reports that Michigan is among the five worst states in the country for availability of per capita state-operated psychiatric hospital beds. Until we have the political will to improve this, there is always going to be a major problem with hospitalization of severe mental illness cases. Sincerely, Mark Reinstein President and CEO Mental Health Association in Michigan

WSU programs aim to help patients To the Editor: As chair of the Department of Psychiatry and Behavioral Neurosciences at Wayne State University, I read and applaud the recent focus of Crain’s on the growing behavioral health care crisis in our nation’s emergency departments. ("Special Report: Emergency rooms fill up with psych patients — and then they wait," Jan. 28 issue) Patients with serious emotional and behavioral problems in the emergency department remain the diagnostic and therapeutic orphans of the American health system. Sadly, in a system dominated by politics, posturing and “paying the bills,” these patients are often short-changed. Our team at Wayne State University has developed innovative programs targeted at our most vulnerable and high-risk populations that both improve outcome and reduce cost. We have published these results in prestigious peer-reviewed journals demonstrating significant reductions in lengths of stays and repeat visits of behavioral patients in the ED, and a 94 percent reduction in inpatient psychiatric hospitalization from the ED. In a single year, this program saved Michigan State Medicaid $7.5 million and about $70 million during its tenure. This is good for patients and families, society and taxpayers. So much of this is driven by politics, but if policymakers are serious

and committed to successfully addressing this crisis, we are ready and eager to partner with whomever is willing to help us achieve our department’s mission — to provide the highest quality of care to the patients and families we serve. Working together, Detroit can serve as a national model for how to integrate evidence-based best practice care for our most high-risk and vulnerable populations and confront this crisis. David R. Rosenberg, M.D. Professor and Chair, Department of Psychiatry & Behavioral Neurosciences Psychiatrist in Chief Wayne State University and the Detroit Medical Center Detroit

Article missed Detroit angle To the Editor: I am a longtime subscriber and admirer of Crain's Detroit Business. Having said that, I must express my dismayed surprise after reading your recent article about co-working spaces in Detroit. Of a 38 paragraph article, 35 of them were focused on ONE company — a company that is not headquartered in, founded in, nor “native” to Detroit. Yet, you only spend 3 of your 35 paragraphs (less than 10 percent of your prose for the math-challenged) on the DETROIT-BASED, DETROIT-FOUNDED and heroically nurtured WeWork

rival — Bamboo Detroit.  Bamboo predates WeWork in our region.  Bamboo has a woman CEO (duh.... can you say “tone deaf” in this long-overdue era where many of us are celebrating long-overdue blossoming women leaders?). You quote Amanda Lewan — at the back end of the article.  Bamboo has struggled and is succeeding at nurturing startups, against all odds. At the risk of being termed “tunnel-visioned,” I (too) am not a “native” of Detroit. I adopted the state of Michigan, 33 years ago. Like anyone who has repeatedly made the decision to stay (despite a lot of opportunities to migrate), I fiercely love and support Michiganians (or Michiganders, if you pre-

fer) and Michigan-based ventures. WeWork was founded, and is controlled, from my native childhood territory: Manhattan. If the article was equitable, you would have focused on more than just them. And while the co-working concept was partially pioneered by WW, and is validated by it coming here, truly an investment in Bamboo would have been a better investment, IMHO, from those who, instead, invited WeWork to expand here. (Can you say “carpetbaggers?” I can.) Detroit HUSTLES HARDER. Did you know? And the leaders of Bamboo Detroit are excellent examples of that precept. I used to think Crain’s was, too. Kathleen Norton-Schock Bloomfield Hills

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FOCUS REAL ESTATE

LARRY PEPLIN FOR CRAIN’S

Twelve Oaks mall in Novi is owned by Bloomfield Hills-based Taubman Centers Inc.

The state of the metro Detroit shopping mall Reports of the mall’s demise may be somewhat exaggerated as some high-end retail centers thrive

By Kirk Pinho kpinho@crain.com

High-end malls like some in Oakland County are expected to continue to perform well far into the future in spite of a changing mall landscape in the state’s wealthiest county, and across the state and country. In fact, contrary to the popular notion that brick and mortar retail is dying a slow death at the hands of Amazon.com and online retail in general, data suggests that retail is doing better than it was several years ago. CoStar Group Inc., a Washington, D.C.-based real estate information service, says that mall vacancy rates in metro Detroit were 8.4 percent in the first quarter of 2013. Last quarter it was 6.7 percent and this quarter it is forecast at 5.5 percent. In addition, rents per square foot have been increasing, suggesting an increased demand for space. In Q1 2013, it cost $23.34 per square foot to lease in a mall, while last quarter it was $25.17, an increase of

Need to know

 Metro Detroit mall vacancy rates have dropped in recent years  Rents per square foot are increasing, suggesting growing demand for space  High-end destination malls are thriving, while some older malls will meet the wrecking ball this year

In this package

 Agree Realty Corp. will double its HQ as acquisiton, diversification strategy pays off. Page 1  The state of the metro Detroit shopping mall. This Page  Macomb Mall a case study in still-kicking mall retail. Page 11

7.84 percent. Malls such as Twelve Oaks in Novi, owned by Bloomfield Hillsbased Taubman Centers Inc. (NYSE: TCO); Somerset Collection in Troy, owned and managed by Southfield-based The Forbes Co. (which

was unable to comment for this story); and the Taubman-owned Great Lakes Crossing in Auburn Hills, will continue to thrive as they offer unique and destination shopping experiences, said William Taubman, COO of Taubman Centers. He said an intricate interplay between the evolution of online shopping and changing demographics is responsible for shifts in shopping patterns, harming some malls. “Everyone talks about the Internet and Amazon, and it’s very important, but it’s sort of Donald Trumpian — it’s over-simplifying and making a sound bite out of a complex and much more evolved situation,” he said. Millennials (the Pew Research Center defines them as those born between 1981 and 1996) tend to have less disposable income because of things like student loan debt and slow wage growth, translating to more budget-oriented shopping. That has hindered some centers,

and once-thriving malls such as Summit Place Mall in Waterford Township and Northland Center in Southfield both face the wrecking ball this year as online shopping has emerged and demographics have shifted. But malls such as Somerset, Twelve Oaks and Great Lakes Crossing have weathered the onslaught because they offer high-end destination retail and experiences, Taubman said. For example, the region’s two Apple stores are in the Troy and Novi malls. Kate Spade’s only three metro Detroit locations are in those malls. Armani only has shops in Somerset. Detroit-based retailer Shinola has selectively opened stores in Somerset, Great Lakes Crossing and downtown Ann Arbor. Those retailers pull in customers from around the region. “If you have unique stores that only you provide within the market, then you become the destination.” SEE MALL, PAGE 12

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SPECIAL REPORT: REAL ESTATE

Macomb Mall a case study in still-kicking mall retail By Kirk Pinho kpinho@crain.com

Christopher Brochert walks around Macomb Mall in a shoulder sling, a byproduct of a surgery a few days earlier. In the middle of the afternoon during the middle of the work week, it’s surprisingly busy. The mall on Gratiot Avenue at Masonic in Roseville also went under the knife in the five and a half years that West Bloomfield Township-based Lormax Stern Development Co. has owned the property, which Brochert categorized as rundown and in need of serious TLC when they acquired it. “Right now it’s Thursday afternoon at 2:30 or 3 p.m. When we came in here at 1:30 p.m., the place was jamming,” said Brochert, the cofounder and partner of the company. It co-owns the property with New York City-based Time Equities Inc. He declined to discuss the ownership structure.

Need to know

JJLormax Stern, Time Equities have invested $28-30M in improvements to Macomb Mall since acquiring it in 2013 JJAttracted H&M, Ulta, At Home and Dick’s Sporting Goods as new tenants JJA food court is on the way, by popular demand

Brochert said $28 million to $30 million was spent improving it and overhauling the tenant roster, including building a new Dick’s Sporting Goods store. The result is a mall that upends the notion that one of the symbols of 20th-century consumerism is dying. While some malls may be suffering (Eastland Center) or closed (Summit Place, Northland, others) as anchor tenants and other retailers shutter, others have found ways to survive and, in the case of Macomb Mall, reinvent themselves. “(Lormax Stern) did a great job and it shows what true professional retail development expertise can do in a still-vibrant infill location with the right demographics,” said Dennis Bernard, a metro Detroit real estate expert who is founder of Southfield-based Bernard Financial Group. “They understood both the location and the needs of the community and aligned them very successfully with

Vacancies have decreased at Macomb Mall in the five and a half years that Lormax Stern Development Co. has owned the property.

the appropriate retailers. Mall retail is not necessarily dead, just still shifting around the life cycle.” Today, the mall boasts tenants such as H&M, Ulta and Dick’s Sporting Goods, all of which were lured to the mall under Lormax Stern’s ownership. The company brought in Dick’s by demolishing the 127,000-square-foot former Value City Store and building the new 50,000-square-foot sports retailer. A Hobby Lobby is also on the way in an attached anchor formerly occupied by Sears; At Home also is in the space. “When we took over in 2013, the first thing we had to do was get rid of all the riff-raff,” Brochert said. “The cigarette store selling the burner phones and the lotto tickets.” Dated tiling was replaced with more contemporary flooring. Ceil-

ings were opened up to allow for more natural light. Storefronts were updated. Some retailers were moved to different locations in the mall, while others expanded, like Payless, which nearly doubled its footprint to 6,000 square feet, Brochert said. And a food court is on the way. “That’s the No. 1 thing that people asked for in this mall: Food,” Brochert said. Time Equities says the mall today is 93 percent occupied, compared to just 81 or 82 percent when it was bought by Lormax Stern, which also handles leasing and management for the property. “The consumers that live in the area, we have given them a reason to come to Macomb Mall,” Brochert said.

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Macomb Mall boasts tenants such as H&M, Ulta and Dick’s Sporting Goods.

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

SPECIAL REPORT: REAL ESTATE

MALL

FROM PAGE 10

Joey Agree, CEO of Bloomfield Hills-based retail real estate investment trust Agree Realty Corp., said that in addition to e-commerce, oversaturation of brick-and-mortar retail is another driving factor in the number of retailers being trimmed back. There are 24 square feet of retail space per person in the U.S., compared to 14 in Canada and single-digits in Europe. According to data from the International Council of Shopping Centers, the U.S. congressional districts representing metro Detroit only had a 0.2 percent decline in total leasable enclosed mall and other retail center space between 2017 and 2018, falling from 132.35 million square feet to 132.1 million. And the area actually gained shopping areas, rising from 2,330 to 2,335 in that time period. “We have 1,000 malls in this country. Will we see the A malls survive and dynamically change? Yes, and we’ll see those malls thrive,” Agree said (see related story, Page 1). “The (Class) C malls, the B- malls that have the Sears and JCPenney’s and Macy’s of the world are going to have significant challenges.”

Malls meet mixed fates Oakland County has a pair of large sites that will be freed up for redevelopment once their enclosed shopping centers meet their ultimate fate later this year: Demolition. Al Aceves, executive director of the Southfield Downtown Development Authority, said Northland Center is expected to be demolished by the end of this year, with the process beginning in the second quarter after the city picks a contractor following a request for proposals process. About 1 million square feet of the 1.4 millionsquare-foot property remain. The city has been in discussions with three developers, the largest of which is San Diego-based Pacific Medical Buildings, Aceves said. Crain’s reported in March that the company is looking to partner with various entities — including Ascension Health, the national nonprofit hospital chain based in St. Louis that owns the St. John Providence Health System — to build what it calls a “mega-outpatient community” on the northeast end of the property, Vice President of Development Ben Rosenfeld said at the time. The vision includes urgent care, medical fitness and other health care space. Aceves also said a pair of smaller retail developers are considering portions of the site off the Lodge Freeway north of Eight Mile Road. He declined to identify them. Southfield bought the center for $2.4 million, months after it closed, in 2015 and began to demolish it in the fall 2017. About 18 miles to the north, Southfield-based Ari-El Enterprises Inc. purchased the Summit Place Mall property on the Waterford Township/ Pontiac border and plans a mixeduse development with office, flex engineering, research and development, warehouse, distribution and restaurants that could be built on the 74-acre site, which Ari-El paid $3.7 million for in September. The development is expected to cost $63 million, with $8 million for demolition that’s anticipated to begin

COSTAR GROUP INC.

Eastland Center has an uncertain future but a new owner in Great Neck, N.Y.-based Kohan Retail Investment Group, which placed a winning $3.125 million auction bid for a 640,000-square-foot chunk of the Harper Woods mall last year.

Lakeside Mall in Sterling Heights has been talking to developers and redrawing zoning rules for what it anticipates is the eventual demise of the property in favor of more urban, walkable downtown-style retail.

“We have 1,000 malls in this country. Will we see the A malls survive and dynamically change? Yes, and we’ll see those malls thrive. The (Class) C malls, the B- malls that have the Sears and JCPenney’s and Macy’s of the world are going to have significant challenges.” Joey Agree

in the spring. Roadways and other infrastructure would be built starting in the summer next year and the project would be completed over three-five years ending by December 2023, a township document says. The 1.4 million-square-foot shop-

ping center was condemned in December 2014. But Oakland Mall in Troy, which is about 800,000 square feet and sits on 122 acres, remains viable. It’s about 5.5 percent vacant, according to data from CoStar Group. In recent years, the mall has added a Field & Stream store after a Circuit City was demolished and the outdoor goods retailer took its place. It has also added stores like a St. Julian Winery and a Dick’s Sporting Goods, plus H&M and At Home. However, the mall last year lost its Sears store as part of the bloodletting that has besieged the former retail giant. In Wayne County, Eastland Center has an uncertain future but a new owner in Great Neck, N.Y.-based Kohan Retail Investment Group, which placed a winning $3.125 million auction bid for a 640,000-square-foot chunk of the Harper Woods mall last year. Kohan told Crain's in November that it plans to stabilize the mall by finding new tenants. And the city is pushing what it calls an “economically sustainable” rede-

COSTAR GROUP INC.

The parking lot at Northland Center in Southfield sat empty since for years after the mall closed in 2015.

velopment plan which includes replacing the aging mall with a civic campus that includes a new city hall and police department. However, Kohan has a spotty record with malls in St. Louis, Midland and elsewhere. Other Wayne County malls such as Fairlane Town Center have been creative in replacing vacated anchor space. Fairlane Town Center, for example, took on Ford Motor Co. as a tenant in the former home of Lord & Taylor across from the automaker’s headquarters in Dearborn. The automaker, which made the move two years in advance of its announcement of plans for a new autonomous and electric vehicle campus in Detroit’s Corktown neighborhood, took 240,000 square feet there. In Macomb County, Macomb Mall in Roseville on Gratiot Avenue has taken on new life under new ownership (see related story, Page 11). And Lakeside Mall in Sterling Heights has been talking to developers and redrawing zoning rules for what it anticipates is the eventual demise of the property in favor of more urban,

walkable downtown-style retail. There are two concepts for the mall on Hall Road between Hayes and Schoenherr roads on the table, Crain’s reported last year. The first keeps the fully enclosed mall largely intact and surrounds it with public, residential, medical and office space. The second takes a wrecking ball to the concrete behemoth built in 1976 and replaces it with more of a groundup redevelopment. The Mall at Patridge Creek in Clinton Township — which is an open-air concept mall launched in 2007 — continues to attract tenants, as well. For example, in April it was announced that Cooper’s Hawk Winery & Restaurants was building its first Michigan location there in about 10,500 square feet. However, Black Finn Ameripub at the mall closed this summer, according to The Macomb Daily, and the Carson’s store closed last year although mall officials told the newspaper that they were in discussions with a replacement tenant. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

MPSC chair discusses highlights of 2018 energy cases By Jay Greene

done to ensure there is enough power in the state and that distribution lines to customers are not interrupted too often or long because of storms or other events?

jgreene@crain.com

As chairman of the Michigan Public Service Commission, Sally Talberg is completing her fifth year and the most active two-year period in the history of the commission, a state body that regulates the energy and telecommunications industries. “2017 and 2018 were collectively unprecedented in the volume of activity (650 case rulings in 2018 and 617 in 2017) and issues facing the commission,” said Talberg, a former energy consultant with Public Sector Consultants who was initially appointed by former Gov. Rick Snyder in July 2013. She became chair in January 2016 and was appointed to a new term in March 2017 that ends July 2021. Talberg said people who have been working or affiliated with the commission the past 45 years have never felt so busy. Even the 2011-2012 period, which had 1,443 cases decided, wasn't overall as hectic and monumental, she said. “Some are routine filings that are approved, but there have been tremendous and weighty matters as well,” she said. “There is a changing world around us with (new and emerging) technology, aging (utility) infrastructure and new policies by the state” to create regulations for and oversee. They include enforcing customer protections, launching long-term planning for service reliability, setting the groundwork for successfully integrating new technology into the electrical grid and approving additional natural gas line improvements to replace aging infrastructure. The commission updated pricing for customer-owned distributed generation, approved online bill financing, tweaked voluntary green pricing and expanded utility programs that help businesses and residents cut their energy waste through insulation, heating and cooling and other equipment. In a recent interview with Crain’s senior reporter Jay Greene, Talberg reflected on her time with the commission and the highlights, accomplishments and difficult cases of 2018. She also looked ahead to 2019. The federal income tax cut was big. How did this help utility customers? Talberg: Our staff worked hard to re-

turn the full amount of the tax cut savings to ratepayers. It was a big job administratively. There was about $380 million returned to residential and business customers and $230 million in credits. Some states didn’t do anything immediately. We wanted to act quickly, and we did.

What about the plans by DTE Energy Co. and Consumers Energy Co. to close down coal-fired power plants?

There are many coal plants closing in the state. There are a portfolio of options on how to replace those plants. Construction in the Upper Peninsula is underway with new natural gas units to replace a shuttered coal plant in Marquette for Upper Michigan Energy Resources Corp. The commission approved in April 2018 a certificate-of-necessity for a $1 billion, 1,100 megawatt natural gas power plant for DTE in St. Clair County that will power 850,000 homes. It will replace three coal plants and open in 2022. How will the utilities replace those energy sources?

There are new options for renewable energy. Michigan is diversifying its en-

We have talked about electric reliability issues in the past. For the first time at our direction, the two major utilities developed distribution plans. They are more modern and reliable for customers. It was an incredible learning experience for staff and stakeholders. These reports are several inches thick, a little wonky, but we need solid distribution plans to help us plan infrastructure needs. We will continue with the next round of plans in 2020.

“2017 and 2018 were collectively unprecedented in the volume of activity (650 case rulings in 2018 and 617 in 2017) and issues facing the commission.” Sally Talberg

ergy sources and becoming cleaner. There also are energy improvements with new demand-response and efficiency programs. We have a number of proceedings with energy waste reductions. The 2016 law removed caps on efficiencies. Demand response programs are done through rate cases. Proposals by DTE and Consumers Energy are being reviewed to add over 1,400 megawatts of renewable energy in Michigan. The commission approved the expansion of energy waste reduction programs that defer or displace costly infrastructure and cut emissions in the power sector. What progress did the commission make on electric and autonomous vehicles?

The groundwork was laid with electric vehicle leaders. A few years ago Consumers proposed EV funding. They withdrew to give more time to study the project. Then they came back. (Consumers’ rate case and $10 million EV program were approved in January.) There is a fundamental shift going on in the automotive industry with EVs and autonomous vehicles. If not done right, it will stall progress in production and impact the grid the wrong way. If the placement of chargers are not optimized, if chargers are not used at the right time, it will lead to additional costs, not savings. (The utilities) can have additional sales off-peak times, and that can lower rates for all customers (by spreading capital costs). We want to ensure adequate customer education, which is an important part of the process. Long-term plans to address electric distribution with EVs are under review to integrate new energy technologies such as electric vehicles, solar and battery storage. The commission is a national regulatory leader by providing guidance on the four important cornerstones of effective EV public policy — education, impact on the grid, pricing and infrastructure deployment. Michigan has had problems with electricity reliability issues. What was

What about the so-called integrated resource plans that were, in part, intended to supplement the renewable energy mandate and encourage more renewables?

Consumers submitted their IRP, and we will have a decision in early April. DTE will file in late March. Other energy producers have variable schedules during the year. IRPs are comprehensive five-year plans on how utilities will meet customer power needs and provide reliable and leastcost electricity. The plans that must be submitted by utilities that serve the Upper and Lower Peninsulas address emerging technology, customer preferences, renewable resources, energy waste reduction and market conditions. They’re really a holistic review of future plans to make sure utilities can meet customers needs in a reliable and efficient manner. (The 2016 renewable energy mandate is 15 percent of the state’s electric energy needs produced by renewable resources by 2021, and 35 percent by 2025 from renewable energy and energy waste reduction.) What about distribution system infrastructure improvements?

We addressed many improvements. The commission has also focused on electric infrastructure upgrades, which means working with utilities on replacing equipment, modernizing substations and clearing vegetation around power lines. Investments since 2011 have decreased by 16 percent the frequency of power outages and the average time to restore power after an outage is down by 14 percent. One critical need we approved was to increase the pace of replacing cast iron gas pipelines in the state. This is important for safety. There was a backlog before 2011 and many lines in need of replacement. We accelerated thousand of miles of replacements. (At-risk gas pipeline replacement by rate-regulated utilities is up 318 percent over the past seven years from 79 miles annually in 2011 to 330 miles in 2018. DTE will spend $135.6 million this year, $169.7 million in 2019, $193 million in 2020, and $191 million annually from 2021 through 2023 on gas pipeline replacement. Consumers will spend at least $75 million annually through 2021.) What about cybersecurity? The commission ordered the utilities to inform it about attacks and what they are doing to prevent hacking.

We formalized a process to work with utilities on reporting attacks and how to protect from it. We haven’t begun. We decided on an oral reporting process because there is sensitive information and the danger of it getting into the wrong hands. Staff will go on site this year and talk it through with the utilities.

How has President Donald Trump’s opposition to renewable energy, the Obama administration's Clean Power Plan and support for the coal industry impacted state discussions and policies on clean energy and efficiency?

It is not that significant in the course of action we have taken at the commission. All utilities in the state have made with their commitments to renewable energy. The shift away from coal is obvious. We also have seen pretty profound shift away from carbon, with business making commitments to sustainability. Many businesses have made commitments to 100 percent renewable sources of energy. The commission approved customer safeguards. Can you give an example of one?

New customer rules went into effect last year to protect those in medically compromised situations from having their utility service shut off. This process allows customers to file a form with their utility to keep the power on if a shutoff will be life-threatening. Customers still need to get on a payment plan or work with the utility to make some kind of payment, but if approved, they can’t be shut off if they fall behind on their bills. The commission was busy, but what about setbacks or mistakes?

I always say it is challenging at the commission. Implementation of federal PURPA, the Public Utilities Regulatory Policies Act, has been challenging. There have been tensions with the cases. We have a 40-year-old law and new technology is coming in, and there are additional costs for utilities. There is a layer in the process with the contested cases that is an arduous process. (It is unclear now what the rates utilities will pay independent power producers such as hydroelectric and biomass plant operators under PURPA. Prices for electricity paid to IPPs must be determined in rate cases pending before the commission). What about the 3-0 state appellate court decision that instructed the commission to rework the order it issued on a “local clearing requirement” policy that affected about 20 electric choice providers and thousands of business customers that

purchase lower-priced electricity. The court said the commission improperly interpreted the state Legislature’s 2016 energy law to generate power for participating schools and large businesses in Lower Michigan. What happened?

We have appealed to the Michigan Supreme Court. All I can say is the commission faithfully addressed the law in how it is implemented. We will see where the chips fall. It is a stay right now. We took a reasonable approach to what the industry proposed. Why did the commission change the state’s successful net metering law to distributed generation approach? Net metering encouraged rooftop solar and gave homeowners more return on investment for purchasing solar.

We were instructed by legislation to phase out net metering and come up with a new system under distributed generation that ensures equitable cost of service to customers. This is a pending case before us and a staff report on the methodology is expected in April. The methodology would have a longer payback for customers. In 2016, the state’s new energy law eliminated net metering, which paid renewable energy customers retail rates for generating excess electricity back to the grid. Instead, the commission imposed new private generation prices based on utility avoided costs, which is lower than under previous net metering rates. About 3,300 people in Michigan generate renewable energy, and 93 percent of them are solar energy projects. What does 2019 look like?

The commission will consider more integrated resource plans, decide major issues in rate cases and update standards for connecting private generators to the electric grid. Equally significant, though, will be the larger role utility customers will play in managing their energy use — whether that’s individual rooftop solar or participating in utility programs to source their power from renewable energy. With the declining cost of technologies and changes in customer behavior, the utility and regulatory models will need to adapt to the changing world around us. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

Two top medical administrators stepping down at WSU By Jay Greene jgreene@crain.com

Two top health officials at Wayne State University and its medical school will step down this year, WSU President M. Roy Wilson, M.D., announced Thursday. In an email Wednesday afternoon to faculty, Wilson said Dean Jack Sobel of the Wayne State University School of Medicine, and David Hefner, vice president of health affairs for the university, would step down. Wilson did not give a date. But both Sobel, 77, and Hefner, 64, have said their terms at the university would be as long as they were needed. Sobel became interim dean in November 2014, replacing Valerie Parisi, M.D., later signing a series of contracts as dean. Hefner began at WSU in June 2015 to help the medical school’s University Physician Group and related entities turn around from a $29 million deficit. UPG filed for bankruptcy last November. A national search for a new medical school dean will begin shortly, Wilson said, adding that the new dean will also hold the title of vice president of health affairs. The search committee will include representatives from the university’s other health sciences schools and colleges and senior leadership from Henry Ford Health System, with whom Wayne State is working on a partnership deal.

Need to know

WSU medical school Dean Jack Sobel and university Vice President of Health Affairs David Hefner to depart later this year 

 Sobel and Hefner have said jobs were temporary to help turn around and stabilize medical school  National search will begin for a combined dean and health affairs vice president with input from future partner Henry Ford Health System

Jack Sobel: Dean of WSU medical school.

David Hefner: Vice president of health affairs.

Sobel, Hefner, Wilson and other top university officials have been involved in the affiliation discussions with Henry Ford for more than 18 months. Last fall, the two organizations signed a letter of intent to affiliate in a number of clinical services, research and medical education areas. Wayne State and Henry Ford are expected to sign a final affiliation agreement in late March.

WAYNE STATE UNIVERSITY

Wayne State University and Henry Ford Health System are expected to sign a final affiliation agreement in late March.

Over the past two weeks, Crain’s has learned that the affiliation discussions have reached a critical phase and top executives are now involved in hammering out the final structure of the deal. “Great progress has been made in a number of critical areas (at the medical school),” Wilson said in a statement. “Financial integrity and stability have been restored, curric-

ulum and clinical opportunities for our students have been improved and strengthened, and there have been great strides in our research program and external partnerships.” Wilson said Sobel, an infectious disease specialist, agreed to extend his role as dean twice to help the medical school overcome financial issues and later in 2017 accreditation problems.

“We owe a huge debt of gratitude to Dean Sobel, whose wisdom, strength of purpose and commitment to the success of the School of Medicine and our students are second to none,” Wilson said. Wilson credited Hefner, a longtime academic medical administrator, with providing “tremendous leadership” and “invaluable guidance and expertise in bringing stability to the school of medicine and to forging a transformational partnership with Henry Ford Health System.” Wilson said that as Hefner and Sobel depart this year he decided to merge the two positions, creating a new position of vice president for health affairs and dean of the school of medicine. “This structure is in place at a number of institutions, including the University of Colorado, the University of Cincinnati, and the University of Utah,” Wilson said. “Merging these positions will provide the opportunity to recruit very high quality candidates with the right background and leadership experience to make Wayne State University’s vision for the health sciences a reality.” Wilson added that Hefner and Sobel have agreed to remain in place until a successor is named and in the job. Jay Greene: (313) 446-0325 Twitter: @jaybgreene

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

Former lawmakers propose 47-cent gas-tax hike to fix roads By Chad Livengood

Need to know

clivengood@crain.com

A bipartisan group of former Michigan legislators has proposed a “consensus” plan to fix Michigan’s crumbling transportation infrastructure: More than double the state’s tax on gasoline and diesel fuel over nine years to generate $2.45 billion in new annual road funding. The newly formed Michigan Consensus Policy Project’s first recommendation to Democratic Gov. Gretchen Whitmer and the Republican-controlled Legislature is to spread out a 47-cent fuel tax increase over nine years. A 47-cent gas tax increase would give Michigan the highest tax at the pump in the country at 73 cents — plus the 6 percent sales tax, which doesn’t go to roads. Michigan’s 26.3cent state gas tax was ranked fifth-highest in the country by The Tax Foundation after a seven-cent increase in 2017. Michigan Consensus Policy Project’s proposal comes as Whitmer is preparing what she has called a “real plan” to fund road improvements after the Legislature implemented a $1.2 billion plan four years ago that transportation experts say won’t stem the tide of crumbling road conditions. “We’re under no sort of illusions of what type of impact it might have,” said Ken Sikkema, a former Republican Senate majority leader from suburban Grand Rapids who is leading the project. “But we think that someone’s got to jumpstart this conversation.” The Michigan Consensus Policy Project was formed by Sikkema and fellow Republican and former House Speaker Paul Hillegonds and two Democrats, former Lt. Gov. John Cherry and former Senate Minority Leader Bob Emerson. The 47-cent gas tax hike would start with a 7-cent hike in the first year, two cents of which would generate about $100 million annually to repair subdivision streets that are often paid for by special assessments on property owners. Every penny of tax on gasoline and diesel fuel generates about $55 million annually. After the first year hike, the fuel tax would increase by five cents annually until 2028. The work group of veterans of Lansing and state politics expect their proposed tax increase will receive some “blowback” as Whitmer and legislators grapple with an issue that’s been debated for years at the Capitol, Emerson said. “None of us were born yesterday,” Emerson said. Sikkema, who is directing the project, said the work group is trying to formulate public policy ideas that counteract “the intense polarization of politics.” Cherry sought the two-cent earmark for secondary city streets and suburban subdivision roads that don’t historically get state funding to maintenance and upkeep. “We thought to incent local governments to do this, there ought to be a pool of money available to provide matching grants to local government to take over responsibility to those roads and get them fixed up,” said Emerson, a former state budget director under Gov. Jennifer Granholm. “John (Cherry) felt pretty strongly that in a lot of suburban areas there are subdivisions where the roads are

JJBipartisan group’s plan would step up gas tax to highest in country JJTax would step up to 47 cents over seven years JJFormer lawmakers involved include Sikkema, Hillegonds, Cherry

CHAD LIVENGOOD/CRAIN’S DETROIT BUSINESS

The newly formed Michigan Consensus Policy Project, a bipartisan group of former state legislators, is proposing raising the state’s 26.3-cent fuel tax by 47 cents over a period of nine years to generate $2.45 billion more annually in road funding.

far worse that most of the highways, state roads and the county roads.” The proposal’s revenue proposal is just short of a 2016 recommendation from former Gov. Rick Snyder’s 21st Century Infrastructure Commission, which said Michigan needs to be spending $2.6 billion more annually to repair and upgrade roads, bridges and highways. To get to the $2.6 billion mark, the remaining $163 million could come from earmarked online sales tax revenue and a new excise tax dedicated to roads from the sale of recreational marijuana, Michigan Consensus Policy Project said in a report released Thursday. The infrastructure commission’s report, which has been largely ignored by the Legislature, followed the Legislature’s passage of a long-debated $1.2 billion plan that became law in the fall of 2015 but won’t be fully funded until 2021. That plan was half funded by a 7-cent gas tax increase and 20 percent increase in vehicle registration fees that went into effect in January 2017. The other $600 million is being gradually earmarked from the state’s $10 billion general fund, raising fears in Lansing that other state programs will have to be cut in order to fund road repair obligations. Michigan’s general fund has historically not grown with the rate of inflation. Over the past 18 years, the general fund’s growth is $3 billion under inflation, according to the nonpartisan Senate Fiscal Agency. Based on the current funding plan, the Michigan Department of Transportation has projected paving conditions of state trunkline roads will continue to decline from 65 percent rated good or fair in 2017 to 48 percent in good or fair condition by 2028. The Michigan Consensus Policy Project’s proposal seeks to gradually increase fuel taxes to the level the infrastructure commission said was needed three years ago. “Even though it’s the current need,

we didn’t feel comfortable raising that money all at once for a number of reasons,” Emerson said. “One of them just being the capacity of road builders to meet the need.” One of the reasons lawmakers resisted a 20-cent-plus gas tax increase in 2015 was concerns that road construction companies can’t handle the additional work all at once — an assertion industry leaders have repeatedly said is unfounded. There’s also a concern about road construction companies and materials suppliers dramatically raising prices “because they know the money is there,” Emerson said. “There’s also the concern about how much orange barrel trauma the people of money really want to suffer through,” Emerson said. “We have a short construction season, and even though everyone wants all of the roads fixed, nobody complains more than people in Michigan about orange barrels.” The former legislators argued that taxes on fuel remain the most reliable way to fund transportation infrastructure, even as new electric vehicles are set to hit the market in the coming years. Emerging vehicle technology that could tax motorists based on the number of miles they drive is still “many years away from being universally adoptable,” the Michigan Consensus Policy Project said in a report released Thursday. “While we acknowledge the increasing use of electric vehicles and the declining value of the gas tax because of vehicle mileage increases, the gas tax still remains the revenue source most related to use and will remain so for some considerable length of time,” the group said. The group’s proposal would not tinker with the Act 51 funding formula that splits up fuel taxes and vehicle registration fees by giving 39.1 percent to MDOT for state trunkline roads, 39.1 percent to county road commissions and 21.8 percent to cities and villages. The remaining 10

percent of Michigan Transportation Fund revenue is dedicated to public transit. “We weren’t sure we could reach that consensus on how to distribute

the money any different way,” Emerson said. “Our assessment was that was a political fight we didn’t want to engage in.” Former House Appropriations Chairman Joe Haveman, R-Holland, and former Rep. Steve Tobocman, D-Detroit, also have joined the steering committee of the Michigan Consensus Policy Project. Instead of creating a new not-forprofit organization, the project is being housed at the Ann Arbor-based Center for Michigan, a “think and do tank” founded in 2006 that operates the nonprofit news organization Bridge Magazine. Retired newspaper publisher Phil Power, the founder and chairman of the Center for Michigan, was involved in creation of the Michigan Consensus Policy Project but is not part of the steering committee that will make policy recommendations to lawmakers. “None of us were enamored with (the idea of ) creating an entity for the sake of creating an entity,” Sikkema said. Chad Livengood: (313) 446-1654 Twitter: @ChadLivengood

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

DEALS & DETAILS MERGERS & ACQUISITIONS Detroit-based private equity firm Huron Capital Partners LLC’s aftermarket car accessories and restoration parts platform, Drake Automotive Group Inc., has acquired Mesa, Ariz.based Addictive Desert Designs LLC, a designer, manufacturer and distributor of truck, SUV and Jeep accessories for the off-road aftermarket. Also, Huron Capital’s HVAC replacement, retrofit and repair services platform, Pueblo Mechanical & Controls , has acquired Commercial Air Inc. , Phoenix, Ariz., a mechanical contractor. Huron Capital’s auction and remarketing facilitation platform, XLerate Group, has acquired Southeastern Auto Auction, Savannah, Ga., an auto auction company. Also, Huron Capital made an equity investment in WD Lab Grown Diamonds, Washington D.C., producer of laboratory grown diamonds for the jewelry, scientific and industrial markets. Websites: huroncapital.com, drakeautomotivegroup.com, addictivedesertdesigns.com, pueblo-mechanical.com, comairinc.com, southeasternaa.com, XLerategroup.com, wdlabgrowndiamonds.com J TriMas Corp., Bloomfield Hills, manufacturer of engineered components, acquired Plastic Srl, Forli, Italy, manufacturer of polymeric caps and closures for home care products. Websites: trimascorp.com, plasticsrl.it J

CONTRACTS J Near Perfect Media, Bloomfield Hills, a public relations firm, has been named the agency of record for AutoPets, Auburn Hills, BMG Media

Co., Birmingham, Fisher Unitech, Pleasant Ridge, SafeAirbags.com, New Orleans, La., Town Partners, Detroit, and Powerhome Solar, Mooresville, N.C. Website: nearperfectmedia.com J The U.S. Army has awarded a $335 million contract to General Dynamics Land Systems, Sterling Heights, to deliver 12 prototype vehicles for the mobile protected firepower program. The vehicles will support infantry brigades and will be built in Sterling Heights; Scranton, Pa.; and Tallahassee, Fla., and at the Joint Systems Manufacturing Center in Lima, Ohio. Website: gdls.com J Gale, a Cengage company, Farmington Hills, an educational publishing company, has an agreement with Libraries Connect Ohio, Columbus, Ohio, a library partnership, to provide more than 2,500 school, academic and public libraries in Ohio with free access to Gale digital resources through LCO and its partners — OhioLINK, OPLIN and InfOhio. Also, Yolo County Library, Woodland, Calif., is using Analytics On Demand from Gale to better understand the households in its communities and design customized library services and resources. Gale also released the Global Encyclopedia of Lesbian, Gay, Bisexual, Transgender and Queer History, an academic resource with an international focus on the history of the LGBTQ community. Websites: gale.com, oplin.ohio. gov, yolocountylibrary.org J AVL Powertrain Engineering Inc., Plymouth, designer and developer of powertrain systems, instrumentation and test systems, has been awarded the contract to provide nearly all the

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.

SPOTLIGHT software and hardware for light and heavy duty vehicle, engine and powertrain testing at the new California Air Resources Board’s lab in Riverside, Calif. Website: avl.com, ww2. arb.ca.gov J Team Schostak Family Restaurants. Livonia, a restaurant group and franchisee and operator of Applebee’s in Michigan, has a partnership with Ferndale-based Valentine Distilling Co., Ferndale, a small batch distilling company, to offer two craft cocktails featuring Valentine vodka products 65 Applebee’s locations in Michigan. Websites: teamschostak. com, valentinedistilling.com J DeMaria, Novi, a commercial construction firm, was awarded an Elliman air handler unit upgrades contract by Wayne State University, Detroit. The project consists of replacing three air handlers and a new lab exhaust at the university. Website: demariabuild.com J Delphi Technologies plc, Troy, an automotive supplier, is collaborating with TomTom N.V., Amsterdam, Netherlands, maker of navigation, traffic and map products, on electronic and software applications designed to optimize vehicle fuel efficiency and emissions through mapping data. Websites: delphi.com, tomtom.com/en_us J Vectorform LLC, Royal Oak, a software company, is one of three companies working with Amazon in its Dash Replenishment Service Solution Providers program to invent connected devices that can automatically reorder inventory from Amazon before supplies start running low. Website: vectorform.com J Lear Corp., Southfield, an automotive seating and electrical systems supplier, has signed Hyundai-Kia America Technical Center Inc., Superior Township, a research and development center, as the first development partner in its EXO Technology Partnership Program, a collaborative effort in autonomous driving. Websites: lear.com, hatci.com J Shoe Carnival Inc., Evansville, Ind., a footwear retailer, has selected McCann, Detroit, an advertising network, as its agency of record for integrated marketing services. Websites: mccann.com, shoecarnival.com

EXPANSIONS

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

J The American Concrete Institute, Farmington Hills, a nonprofit technical society and standards developing organization, has opened a regional office in Dubai, United Arab Emirates, on Level 7 of the Dubai World Trade Center. Website: concrete.org J Ross Mortgage Corp., Troy, a residential mortgage lender, has opened a second Florida location with an office at 7400 Baymeadows Way, Suite 315, Jacksonsville, Fla. Ross Mortgage also has a Fort Myers branch. Website: rossmortgage.com J UHY LLP, Sterling Heights, a certified public accounting firm, has added a new member, Bendoraytes & Cia — Auditores Independentes, Rio de Janeiro, Brazil, to its global accountancy network. Website: uhy.com.

GRANTS J The Michigan Talent Investment Agency/Workforce Development Agency has awarded $1.8 million in “Going PRO Talent Fund” grants to 68 Oakland County businesses to

hire or train workers and apprentices. The funds will be used to hire and train 324 new employees, expand the skills of 1,100 existing workers and create 45 new registered apprenticeships during the year. Website: OaklandCountyMIWorks.com

NEW PRODUCTS J Ginko LLC, Ann Arbor, a contact exchange applicaiton developer, has launched Ginko, a mobile app that provides an alternative to business cards or contact managers. Website: ginko.mobi J EhmetDx, Plymouth Township, a medical equipment manufacturer, received clearance from the U.S. Food and Drug Administration for its 3D CBCT positioning software to be used in patient treatment at the McLaren Proton Therapy Center. The system is used to guide the position of the proton beam in patient treatments. Website: ehmetdx.com J Xenith LLC, Detroit, football helmet manufacturer, introduced the Xenith Shadow football helmet with enhanced shock protection and a polymer shell. Website: xenith.com J Totle Inc., Birmingham, a crypto portfolio manager, launched a platform to aggregate decentralized exchanges for consumers and traders. Website: totle.com J Intrepid Control Systems Inc., Madison Heights, an electronics company, is introducing the Autonomous One motherboard, a data logger that integrates inputs into a single platform, linking components of autonomous technology. Website: intrepidcs.com

NEW SERVICES J The Recovery Project, Livonia, provider of rehabilitation therapies for patients with spinal cord and other neurological injuries, has launched a functional movement disorder clinic at its Lansing location to treat disorders including unusual movements, spasms or body positions. Website: therecoveryproject.net J Cybercrime Support Network, Ann Arbor, a public-private, nonprofit collaboration to combat cybercrime, launched Fraudsupport.org, to provide assistance to individual and small business cybercrime victims by leading them through the report, recover and reinforce process after an incident occurs. Website: cybercrimesupport.org J Henry Ford Learning Institute, Dearborn, a nonprofit education program, has expanded its design innovation program, Social Innovation Studio, with a process to help social entrepreneur teams and nonprofits. Website: hfli.org J ComForCare Health Care Holdings LLC, Bloomfield Hills, provider of home care, has introduced private-duty nursing across the franchise system. Website: comforcare.com J MedCerts, Livonia, an online education provider, launched a medical assistant program that delivers a classroom experience online. Websites: medcerts.com J Auros Knowledge Systems, Livonia, a software company, will be hosting monthly 30-minute educational webinars on Auros features. Websites: AurosKS.com

Submit Deals & Details items to cdbdepartments@crain.com

Horizon Global hires new CFO

Towing and trailer manufacturer Horizon Global Corp. has hired a new CFO to take over for a turnaround management firm that has been steering the company’s financial operations since October. Barry Steele joins the Troybased company Steele effective Feb. 18, according to a news release. Steele will take the role from Brian Whittman, managing director of New York City-based turnaround management firm Alvarez & Marsal North America LLC. Whittman will continue as vice president of finance for the company until it files its 10-K annual report, which it typically does on March 1 each year. Steele comes from Northville-based electronic parts supplier Gentherm, where he was CFO for 14 years. Prior to that, he was CFO of the now-defunct Advanced Accessory Systems. He is a certified public accountant and earned a bachelor’s degree from Hillsdale College.

GalaxE.Solutions brings back IT leader

Ryan Hoyle, who played a central role in growing IT services firm GalaxE.Solutions Inc.’s presence in Detroit, is rejoining the company after nearly two years with Gleaners Community Food Bank of Southeastern Michigan. Hoyle, 42, startHoyle ed at Somerset, N.J.-based GalaxE.Solutions’ 250-employee downtown Detroit office in the 1001 Woodward building in early January. He’ll oversee business development, philanthropic and civic efforts in Detroit. It’s an evolution of the previous roles he had starting back in 2009 when GalaxE opened its Detroit office and the city's tech landscape was quite different, Hoyle told Crain’s. His new title is senior director, Detroit, and product specialist, according to a news release.

Cranbrook Academy of Art names new director

After five months as interim leader, Susan Ewing has been named the new director of Cranbrook Academy of Art. Prior to joining Cranbrook as interim director in August, Ewing, a metalsmith expert, spent more than three decades at Miami University Ewing in Ohio as a professor and administrator. In the short time Ewing has led Cranbrook, she has “earned the respect of the students, staff, faculty and volunteer leadership who have all been eager to work with her on planning for the future,” Dominic DiMarco, president of Cranbrook Educational Community, said in a news release.

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

CALENDAR TUESDAY, FEB. 5 7th Annual Canada-US Business Association Cross-Border Economic Forecast Meeting. 11:30 a.m.- 2 p.m. Feb. 5. Speakers: Paul Traub, senior business economist at the Detroit Branch of the Federal Reserve Bank of Chicago, and William Adams, vice presiTraub dent and senior economist for the PNC Financial Services Group. Federal Reserve Bank — Detroit Branch. $50 members; $65 nonmembers. Website: eventbrite. com/e/7th-annual-cusba-cross-border-economic-forecast-meeting-tickets-53830560656?aff=ebdssbdestsearch

THURSDAY, FEB. 7 Patriotism vs. Nationalism — The New American Challenge. 11:30 a.m.-1:30 p.m. Feb. 7. Detroit Economic Club. Marc Morial, president and CEO, National Urban League, will discuss the distinction between the America of yesterday, and the promise Morial of tomorrow’s America. The Masonic. $45 members, $55 guests of members. Website: econclub.org

UPCOMING EVENTS Power of the Future: 2019 Economic Forecast. 8-9:30 a.m. Feb. 12. Troy Chamber. Panel includes: Jennifer Llewellyn, manager and workforce development director, Oakland County Michigan Works! Agency; Dan Gilmartin, executive director and CEO, Michigan Municipal League; and Sandy Baruah, president and CEO, Detroit Regional Chamber. MSU Management Education Center, Troy. $28 members; $34 nonmembers. Email: theteam@troychamber.com; website: troychamber. com/events/troy-chamber-annual-meeting The Divided City: Poverty and Prosperity in Urban America. 11:30 a.m.-1:30 p.m. Feb. 12. Detroit Economic Club. Alan Mallach, author of “The Divided City,” and Maurice Cox, Detroit’s Planning and Development director, will share their thoughts on Cox what’s happening in America’s cities and on Detroit’s urban revival. The Masonic. $45 members, $55 guests of members. Website: econclub.org The Role of Business: Creating Value in Society. 11:30 a.m.-1:30 p.m. Feb. 26. Detroit Economic Club. Jim Hannan, executive vice president

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and CEO, Koch Enterprises, will discuss Koch Industries’ perspective on the role of business — to create value in society. Westin Book Cadillac. $45 members, $55 guests of members. Website: econclub.org Detroit 2030: A Vision for the Future. 7:30 a.m.-4 p.m. Feb. 28. Detroit Regional Chamber. The 2019 Detroit Policy Conference will discuss a vision for Detroit’s next generation. Leaders from business, government and civic organizations will offer their vision for Detroit 2030 and discuss removing barriers to economic prosperity. Author Jay Pitter is the keynote speaker, and Dennis Archer Jr. will chair the event. MotorCity Casino Hotel Sound Board. $159 members; $235 nonmembers. Contact: Jordan Yagiela, phone: (313) 5960384; email: jyagiela@detroitchamber.com 16th Annual APACC East West Business Connection. 9:30 a.m.3:30 p.m. March 6. Asian Pacific American Chamber of Commerce. Networking, exhibits and buyer showcase. Laurel Manor, Livonia. $80 member; $105 nonmember. Registration closing date Feb. 20. Contact: Leonie Teichman, email: leonie@apacc.net Economics of a Health Crisis: How Business Must Lead In the Battle Against Opioids. 11:30 a.m.-1:30 p.m. March 7. Detroit Economic Club. Chris Swift, chairman and CEO, The Hartford, will discuss actions that companies of all sizes can take to help reduce the impact of opioids in the workplace and steps that policymakers can take to support employers in fighting the epidemic. Cobo Center. $45 members, $55 guests of members. Website: econclub.org International Women’s Day Lunch. 11 a.m.-1:30 p.m. March 11. Detroit Regional Chamber. A panel of women executives will speak to business leaders on how they can engage in inclusive practices to foster diversity of thought and encourage all employees to Bazzy have a voice. Speakers include: Ana Almeida, vice president, customer business unit, Faurecia Automotive Seating; Najah Bazzy, executive director and founder, Zaman International; Adrienne Bennett, president and CEO, Benkari Mechanical LLC; Leigh Ann Hello, vice president, The Cabinet Studio; and Moderator Christy McDonald, anchor, Detroit Public Television. Detroit Golf Club. $45 members; $65 nonmembers. Contact: Andrea Rayburn, phone: (313) 596-0340; email: arayburn@detroitchamber.com To submit calendar items visit crainsdetroit.com and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu that will appear. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at crainsdetroit.com/events.

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

FUNDING FROM PAGE 3

In late December, the Michigan Department of Health and Human Services applied for federal Medicaid matching funds with a state health plan amendment called Caring 4 Students. If approved, another $19 million in federal funds could be provided to the 56 state intermediate school districts and health centers based on the state’s 64 percent federal Medicaid matching rate. Four states have similar plans approved, including most recently Massachusetts, Brinson said. An additional $5 million will be available to hire additional licensed mental health care providers in the state’s 125 school-based health centers, including those operated by Henry Ford Health System and Ascension Health Michigan. Besides student mental health services, Michigan schools last year received more than $25 million in school safety grants in the wake of the school shootings in Parkland and Santa Fe, Texas. Nearly $70 million was requested, but it still was more than the $2 million granted in 2017. Funding will be used to strengthen entrance points in schools; create access control systems, security film or glass and public address systems; install door barricade devices and door locks; and purchase mobile phone communication and safety applica-

Deb Brinson: Wants system established.

Maureen Connolly: Will apply for funding.

tions. Schools with some of the largest grants include Detroit Public Schools, $750,000; Royal Oak Schools, $578,175; Ann Arbor Public Schools, $956,644; Grand Rapids Public Schools, $866,213; Rochester Community Schools, $828,164 and Benton Harbor Area Schools at $928,725.

School mental health funding approach Under the mental health expansion, health centers and schools would be able to bill Medicaid for services provided to all Medicaid-enrolled students. Currently, only special education students who have an individualized education program can receive the funding. Officials from Oakland and Wayne public schools told Crain’s they would apply for the funds, which amounts to about $264,000 per ISD. Several other counties, including

Kent and Ottawa, also have announced they would use the funds, which were contained in the state’s 2019 K-12 budget. “Michigan’s shortage of schoolbased mental health providers and school nurses is one of the worst in the nation, resulting in a serious health crisis for children lacking or with limited access to care outside of school,” said a white paper distributed last July by the School-Community Health Alliance, which received funding from the Michigan Health Endowment Fund for the project. The report said 27 percent of Michigan youth report symptoms of depression, 16 percent report seriously considered suicide, 25 percent report being bullied at school and 19 percent report electronic bullying. In addition, Michigan’s ratio of 6,607 students for each school nurse is the worst in the nation. Brinson said ISDs need to apply for the funding, submit a plan for billing, staff and services. When they draw down funding and pay bills, they will get the federal matching dollars, she said. “Some of the health centers are based in schools, some partner with organizations in the community,” Brinson said. For example, Henry Ford and Ascension St. John hospitals partner with several individual schools that are part of Detroit Public Schools to operate school-based health centers. Honor Community partners with

FIRE

develop coping skills,” Connolly said. Sen. Pete MacGregor, R-Cannon Township, and former Sen. Goeff Hansen, R-Hart, co-sponsored the school mental health bill, Senate Bill 149, which includes the following funds for the ISDs: J $16.5 million for intermediate school districts to work with their local school systems to provide mental health services. Statewide it breaks down to $294,500 for each ISD. J $8 million for ISDs will to create school-based behavioral health assessment teams that will focus on providing age-appropriate interventions. The teams will train students to identify behaviors that suggest a student is struggling with mental health challenges for treatment and support. J $500,000 to assist ISDs with administration for school mental health programs. “In 10 years, I want to look back and see that a system of care has been established within the schools that support access to an array of health services for children and adolescents,” said Brinson, adding that access includes school nursing, mental health services and prevention. “While it will be a challenge to start the process, the potential to expand access and improve the lives of children statewide will have a tremendous impact for our communities.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

A timeline of the fire JJAbout 10:25 am: Station operators identify an abnormal situation and observe a fire at the southwest corner of the site, outside of Station No. 3, the largest of three buildings with compression units.

FROM PAGE 3

“The prediction today is for 2.9 billion cubic feet of gas. It is still a fairly cold day. In 2014, with the first polar vortex, we set a record for 3 billion cubic feet. Yesterday we set a gas record at 3.7 billion cubic feet,” Rochow said. “It was an unexpected event with the size and nature of it. We are in good position now to supply our customers for the winter.” Rochow said he was out to the Ray facility Friday morning. He said there is a large group of consumers employees and contractors working on restoration of the plant. He said state police and local fire officials are still investigating. “Most of the damage was on plant two. We have plant one flowing and three mostly has heat-related damage. We are working on that now,” he said. “Plant three will take maybe three weeks to get back online. Plant two is more significant. It was closer to the fire and flames and heat. It looks like it originated there. It is out for the season, but not going to impact ability to deliver to customers.” The layout of the Ray facility, which was built out over time, is three separate buildings and three separate plants on the site at 69338 Omo Road, in Armada Township. Station No. 3, which was built in 2011, is the largest of the three. “We don’t know what activated the fire gate system,” Rochow said. “We are looking at that. We do know that in the process of venting the gas that the natural gas caught fire. There was a fireball like in the pictures. As a precautionary measure, plant 1 and 2 were in operation and fire-gated. Personnel fire-gated the entire facility. When that occurred, probably 50 yards separated the buildings .... gas from plants one and two caught fire.” Rochow said it is unclear why automatic controls vented the system and how the gas caught fire. “We can

Waterford and Pontiac school districts in Oakland County. “School health centers have been around for 30 years, but (comprehensive) mental health services will be a first,” she said. Maureen Connolly, M.D., medical director for Henry Ford’s schoolbased and community health program, said Henry Ford’s 10 school and one community-based health centers will apply for about $5 million in funding the state Legislature authorized last December through the Child and Adolescent Health Center Program. Connolly said Henry Ford operates 11 health centers in Southeast Michigan for school-aged adolescents, mostly located in high schools that include Detroit, Highland, Warren and Mt. Clemens. “We have full clinical models in high schools and have nurses in three other schools,” she said. “We provide primary care services, including well visits, physicals, sexual health services and a broad range of care for adolescents.” Connolly said the health centers also do some behavioral health services using clinical therapists. But the additional funding will allow Henry Ford and other school-based providers to expand mental health services. “It is fantastic. It will help so much, especially working with children and young adults. We can go beyond the physician (to address) trauma or adverse childhood events, help them

JJOperators respond by activating the “firegate” system, which essentially shut down Station No. 3 and vented gas in the system to the outside. As a precaution, the firegate system is activated for Station No. 1 and No. 2.

TODD MCINTURF/DETROIT NEWS VIA AP

Fire comes out of the top of two silo-looking structures at the compressor station at Consumers Energy in Armada Township.

see the sequence of events but still looking at the reasons,” he said. “There are lots of things to rule out,” Rochow said. One thing that has been ruled out is any sort of sabotage, he said. “These facilities are considered high security areas. There are a number of cameras on the site with high security fences and badges to enter.” Rochow said all the events happened in less than five minutes from when the alarm went off to the automated venting of all the stations and the fireball. “The buildings were never on fire. All these events occurred around the stacks with the release of gas. There was damaged equipment all around because of the wind,” he said. Damaged equipment loutside Ray plant buildings include regulators that control the pressure of gas, valves and automated control equipment and wires in conduit that connect the equipment. Rochow said it is too early to estimate the financial cost of the damage.

On Thursday, Poppe addressed questions as to why the Ray station caught fire. She said it was a mystery but not due to aging infrastructure. She said the plant has regular maintenance because of its importance. Rochow said Consumers has regularly invested in station upgrades and maintains the facility at the highest level. But he said Consumers is developing a list of lessons learned from the event to ensure it never happens again. “We will continue to invest in the reliability in the plant. We never want to ask customers to be in this position. I regret it occurred,” said Rochow, who has worked for Consumers for 15 years and more than 20 in the utility industry. Rochow said Consumers performs daily safety testing on the system and there was no indication of any problems in the system beforehand. Nick Assendelft, a spokesman with the Michigan Public Service Commission, said the commission's gas safety engineers were on the scene of

JJDuring the venting process, natural gas flowing out of the vent at Station No. 1 ignited into a giant fireball. At that point, the gas venting out of No. 1 and No. 2, which came out at a higher velocity, caught fire from the fireball from Station No. 3. JJExplosive sounds coming from the Ray plant that neighbors reported to media

the fire at Ray station to participate in the investigation. “We’ll have to get through the next few days before the commission determines what its next steps are going forward,” Assendelft said in an email to Crain’s. During the MPSC’s investigation, Assendelft said the gas safety engineer will gather evidence, including a detailed timeline, weather factors, equipment performance, alarms, safety triggers and facility data. “We’ll work with Consumers and the federal Pipeline and Hazardous Materials Safety Administration as we develop our own analysis of the events that led to the blast and fire, and what caused the incident,” said Assendelft, who added the commission’s report could take months to complete. Michigan Gov. Gretchen Whitmer has asked the commission to conduct an initial assessment of supply and delivery of natural gas, electricity and propane, and to assess contingency planning.

covering the event were not explosions inside the buildings or even outside, Consumers officials say. When the gas was vented into the air at high velocity and ignited in the air the physical reaction sounded like a giant “whoosh” that can be mistaken for an explosion, said the official. JJ10:30-10:35 am: All venting completed and the first has died down to a low flame. JJ3:45 pm: Fire is out. JJ8 pm: Station 1, which was furthest away from Station 3, is repaired enough to be put back into service. JJStill to come: Repairs to Station 3 will take at least three weeks. Station 2 is out for the winter season as more extensive repairs on regulators that control gas pressure, valves and automated control equipment, and wires in conduit that connect to the equipment.

Rochow said Consumers welcomes a thorough state review of the compression station and broad assessment of the gas and propane system in Michigan. “We appreciate another set of eyes. When we think about these three plants, we look at them as having triple redundancies” because they have distance between them and operate as separate systems, he said. But Rochow said one lesson Consumers might have learned is that the plants might still be too close to one another, given the fact that venting of gas of all stations at the same time led to the fireball igniting everything at once. “We have systems there and the proximity of the systems has eliminated (favorable) redundancy,” he said. “We will learn from it and think about how investments can create more redundancy on that particular site.” Jay Greene: (313) 446-0325 Twitter: @jaybgreene

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

TCF CEO FROM PAGE

n 1999 Dah s ar ed TCF Equ pmen F nance n Troy swoop ng up a en and eas ng bus ness rom he ormer Na ona Bank o De ro and Dana Corp Tha d v s on o TCF s now n L von a n 2017 TCF bough Troy-based Equ pmen F nanc ng and Leas ng Corp wh ch spec a zes n ease-financ ng ma er a hand ng equ pmen such as ork s “ ve been n h s marke or g na ng bus ness and h r ng eams s nce 1999” Dah sa d n an n erv ew w h Cra ns TCF firs en ered he re a bank ng marke n Sou heas M ch gan hrough wo ma or acqu s ons he 1993 purchase o F rs Federa o Pon ac and he 1995 acqu s on o Grea Lakes Bancorp s 40 branches n he Ann Arbor area Though Chem ca Bank br ngs a arger re a bank ng presence o he merger o he wo compan es TCF has 50 branches n he s a e approved by regu a ors he comb ned bank w have 500-p us branches n n ne s a es w h $45 b on n asse s Cra n s De ro Bus ness a ked w h Dah a er he merger announcemen as week Here s a ranscr p o he n erv ew ha s been ed ed or c ar y CDB Why we e TCF and Chem ca banks a good match fo a “me ge of equa s”?

Dah Wha s so unbe evab e s when you read hese announcemen s he same announcemen works or bo h compan es Tha ke never happens

Bu you can read he same h ngs — ach ev ng sca e acce era ng our s ra egy crea ng a more ba anced oan and depos … A o hese h ngs you can read he same narrave and each s de o he company can read and s rue or hem oo W th th s merger how s that go ng to change the current TCF headquarters n suburban M nneapo s?

The headquar ers o he new (company) s n De ro ve k nd o made some ana og es o a spor s ana ogy s your eam ge ng be er or s ge ng worse? When you ook a Chemca Bank w h he announcemen o he rans er o he (headquar ers) rom M d and o De ro he announcemen o he ower he deposory re a onsh p w h he C y o Dero h s s c ear y a bank ha s ga n ng momen um And h nk when you ook a TCF we re a so a bank ga n ng momen um We don see chang ng where our nven ory finance bus ness s headquar ered — wh ch s curren y n Ch cago Those are go ng o p ay ou over me s there st th s team at TCF Bank n L von a that came out of Nat ona Bank of Detro t and Dana Corp ?

Na ona Bank o De ro had us been acqu red by Bank One and we were very oppor un s c and came n w h a new p a orm hough he odds o ge ng h s eam were ke s m or none And here 20 years a er hey re s some o our op ( ease) or g na ors And hen Dana Corp had a eas ng opera on and go a o o cred documen a on and co econ eam members — and he on y

peop e who have e ha group have re red They ve been here he 20 years Tha s s par o our equ pmen finance bus ness How w the report ng structure of th s new bank and ho d ng company work as you re go ng to be CEO of both the bank and ho d ng company?

From an execu ve dec s on-mak ng and repor ng re a onsh p u ma ey everyone wou d repor up o me wou d repor o he board o d recors Chem ca Bank cha rman Gary (Torgow) s he execu ve cha rman o he board o d rec ors And Vance Opperman who curren y s TCF s

And you re go ng to sp t your t me between M nnesota and Detro t?

Yes ve never rea y been roo ed n one p ace s ar ed hese na ona bus nesses They re no headquarered n my office ( n Wayza a M nn ) necessar y So m requen y a rave er n a o our marke s and wou dn see ha chang ng Are there opportun t es for more mergers and acqu s t ons here w th other banks?

Where do you want to see TCF Bank five years from now?

We ha s an n eres ng ques on Tha s he good and bad news n a ransac on ke h s We spen a o our me ana yz ng each o her We haven spen me rea y ye ana yzng oge her wha we can be Bu h nk he p a orm ha we ve crea ed here n he M dwes we have a remendous oppor un y And we re gong o have an advan age over he o her banks ha end o have more o he r ook o he eas han we do h nk we can be very very mean ngu n he bank p a orm … Hav ng he oppor un y o nves n us one o hese (mob e bank ng) p a orms ra her han hav ng each bank nves ng n o each p a orm ha ge s everyone exc ed o how as we can everage our n ras ruc ure

You know here s wo b g h ngs ha we have o do Number one s we have o have regu a ory approva Tha s a b g s ep So m no presumng any h ng Bo h banks have worked very c ose w h our regu a“I’ve been ors So we re hope u ha we ge an exped ed rev ew o ha And he in this market second h ng s we re go ng o have originating o merge he sys ems Be ore we can business and a k abou ano her ransac on he TCFBank s ate CEO B Cooper hav ng regu a ors are go ng o wan o make bu t th s bank up over30 years w th hiring teams sure ha we re n con ro o he fi- you at h s s de and a so be ng a nat ve since 1999.” nanc a s and he sys ems o he Detro ter what does th s symbo ze to company — and we re go ng o wan you bu d ng a headquarters n B — C a g Dah TCF CEO ha as we Those are go ng o be Cooper s hometown? Z NTROWIT SPE he firs wo hCngs we wou d have o ThereKsA e God w ngs around h s I A L REng sa d ha CORP usE ead d rec or w a so be he new ge beh nd ransac on cer a n y h nk ha s one ONow PORT R SATE Ahav CHIE : HE H EaROremendous E R VEM A A we have oppor un y company s ead d rec or MyAbank o B pu h mse hrough C L H E M TH hem NT ol y M E LT C T: H here are o her op- (WayneASRaEeH board s IA made upPO o Rmy execu ve here And h lnk Un vers y) by be ng a DeE a R ER L c Donaca ro c y cop on O ES C SPE por un es The Ta mer-Chem eam members and we re go ng o he n gh sh He had a l . N d IA M.D ,CEO) PHYSIC i y u n o group has been very acqu s on or add (Chem o capFenanc a Corp remendous career He o a y rev a S lul ) we re go ng o add en ed Wh e TCF has no done or zed he TCF ranch se And a ways had To(Provos Dave How work s (Chem ca Bank CFO) Denn s K aes- a wh e on he bank s de we have an eye o inhe eas itas he hough abou history Mak g er and (Chem ca Bank Pres den ) been very aggress ve on buy ng ha The h ngs o ne up or bo h comTom Sha er as an examp e o our por o os and p a orms ke he pan es You can orce hese ransacbank board So we have a rea y ro- Equ pmen F nanc ng and Leas ng ons know ha (B ) s sm ng down h nk w h on h s because s k nd o mean o be bus bank board ha s rea y ac- Corp ransac on … ha comb na on we re go ng o coun ab e or how s he n egra on go ng o go and how are we do ng on defin e y have our eyes up or o her Chad L vengood (313) 446 1654 oppor un es our financ a goa s Tw er @ChadL vengood 10

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of her late t came out BUS panies tha , com IN E S Sch. assist ViaDerm // ices that resear coneloApsR dev husband’s dical devM C Horders and HBeat Me ent of diseases, dis 1 9rce , s for 16 0 1imtm 8 er sou 2 with the trea heart, such as pow creates skin acons of the ViaDerm tubes diti ps. of n pum ctio By Ja od planted blo that reduce the infe orous surface jgreene y Green s @crai rop n.com e cess device n by using a mic elerate acc to ski tion Molly ural traversing tes cell multiplica severa MacDonald tion of a nat l that stimula promote the forma nosed years before ’s life chan ged with br higan she wa healing and riage l. ered at Mic s diag broke east cancer biologic sea ies are headquart in Plymouth, a . up ba H Fo pan er , nk leav rtu com marru ic Center treatBO together, marrie nately, by th The ences Innovation an Econom to raise pt in 2000, wi ing her ne They work arly Sci d issue, en sh . th five h the Michig she ca in 2002 to ToLife ema volunteers. as a public health ed throug childre hanag Before d re lence lls Tom ce m n - rp. facility she be ttit, wh his su of her Co ing violen ients injured by vio their Terrifi Pe gan te pp opment om eene br c, vel De beca tory of help pat nature ort to her tion sh east cancer lling the sto jec By Jay Gr to tra .com us urain the e and hi . e jgreene@c change ysician, Tol s posit of foundi felt that le and the frustr ry Wom But th atergency ph n too many and ive d ng The aoved the ervention As an em ance, pr see d so for bene en an196 marke e couple ha vides Pink Fu her in 2006 rem lives. 7m team’s int ny e menit into tin , M.D., has sh bbing By Ja s, which lan witzfitin troito ted who ap vented ovided food cred Despite the still sees too ma ce incom g consultin d just starte Dr. Kan to wom ort-term fin nd, which pr to lope Sonuyi with gunshot or sta Sijgreene y for fam e and impare paid rs, m homel end a uyi len y us n be- ply @c bab DMC ect, he es cadea notices was very lo g businWh ily or pr dire treatm en who are ancial supp oyoung me fill rt tempts, Son interpersonal vio ER tiond an essofana braint into ct oudef ugh lthea t a len w. en in or ert ly to ha One of the sness. bro be of rt d the “For Jody hea gan ar supp angthea which box wh y with adfata Press re t, the form active canc t surpris hy appl eclosust of a bab wounds hum survivors d from ppen ly a oo rge riv tal. pr m is ce spi cha in for in he len d ile re po er Ho known idis er clu che per g f vio live to des a and rter wa y at the in m we we Detroit when ed several ing things onltre to car an tof difficu nai-Grace r, twtor th ien ym t doc victims of written routinely the community, let m pat nt re firs th o M on en Fr te d ai ed ye the lti the pa ju a at ac r dy ha e ee lt, in ile e ar es gg fro , to y o Donald suranc ve in fi am s ago cam m th explai the wi neighb One stu U.S. Whstubs anrati ss be on bec After he as a single recidivism cians back int expand DLIVE. e are e paym ling utili inlothe m n her do fe wa and d ca ope ant s et one or ty pr cof ca s spl us ER the m er s , ysi Er t oo to in re James rs,e of tre r split ot and fri ents.tran in De assis his numb the stre “Every ency ph treated “Of hou looking incom ” Thei and a hal splantf softha atmen from he her. ends e is the nts th sses dorou oped m t e pe portrayal of Denton, kn nton, Sonuyi r th urthe 0s by emerg t. no tine tran for six r husb my kids ing was liq As homicid for Detroit reside er Mike De own fo erard rate Ho in the 198 d Hospital, where 1, re“This is mounted. helped ult e is no rs want to tow , bu and, ui th one 15 eth da r t us lab est in dea For lfi tog 201 a te mil ire of ew ye to no mak nightm d. I mov addi could ente su ar gan fre ive public hered in “Des M at Henry his residency in cause his ,” ved ay.ng that fraud no ar el acDo uals. hand. s o Sonuyi gat ers te acDonald ha s.” se who witzlemoM inere possible tod trope somet Kan naeng tion an t believe wi e,” she said cosmet ancing as a education, ed ld sa completed 44 percent of tho aults ages 15-34, like-minded individ C ns, imes “gwitop surogeo . In be th all m id, pr r, Meghan, ge d helped Er wr “I 1970, Dr. DM t h 25 wh don’ So in come d backgrou MacD ics) with M iter and (s t thro oblem in’s sis it.t qualify Buyn along et un ported tha lence had repeat ass end- a group of grant funding from eld happDe t on okl ho nd I woy educ onal old a-m Bro ar y Ka Ricks an 199 t y.”tro ed spi7tal in fro trowitz James s of breast ugh the finan Ho ou tionstoarSinlyaiab ganiza meless.” Th ss Blue Shi y,” sa suffered vio rs and 20 percen Times d. He garner pegra cancer , whos nt,t the Kan cial tions ar ses e commiltlion ere we uld be rcen people d oth id yea or nur were to n, Blue Cro an Founda, five ice and atio e tre of ca pe pl al nd dev re hin ound to mothe applica ncer, atmen eted an rc But M llm wit other ugh. assist wit t h ae $3 2,en sonal As co-fo nged Fou help. no or- In 197 tricula drof n, the Ski n. ng. c -heart money volunteered r had died t. dzia, prd ar idea, ba acDonald ndven Motor jobs, includ She took se left ed said ed up dyi tistics haven’t cha en- Foundatio Kresge Foundatio such chr osoni the fu e 95 t imwithth sa ve ate og for The of ts Ca nonpro sistan to he erg ram d pat, ien perienc sed on her id she had teamnacre rolynma dealer Co. writing ing one at Fo rPi lp raise “The sta fit that vig now an em un- tion and the ruited for DLIVE ns, Pinen agl er ich ha h a per or.allowe man fo n- theDenton work nk Fund. what patient witan ce d Sonuyi, pita I am su e. “If I can’t rd-knocks anLVAD,On for a coprogram an r the top rd d pafounded rio -d Sonuyi rec ders as Calvin Eva to ed rs much,” sai at DMC Sinai-Gra veethe hos leath 100 ex- failure toce get he d late pposed also co irecte mpany s witzes co- tientgy. Fu In Pink in 20 with Ford n y lea r Emertro nan cia nit ap nte th Wi ysi lp r m Kan mu Ce pl ph e , m nd wo to olo ’s So ot al the Ray th m 12 ica cy com hn Pi ions fo 3, War give he aybe rking at deve on to prod tio 198Fu to care petitiv Innk - T-shirt, fu ndent LVA ct by Medic Berry and ervention speis D Tec ping thewe yn fail r the D lp.” nd pla uce a Pi thnt. agemen Oct. 1, 20 er. giver e lengt arin copan ll-pa com der contra vices, an indepe yne Michelle ov int mmitt ansapofprhel etroit Peloped pro06 h ice proWa “Findi s. of bene dical dev violence e meee appr ed, video g the shirt an ge ads of Ja nk me Aver Pink Fu t from Tom , with enco ople M som She ha ng gency Ser up affiliated with serve as oiya Richarson is the or. ag ned , sheclin e paisio and ovsonal e env yments fits, 30 to 90 oves dona . Funds raise d a four-m mes gro as opi-ened ur- pay“H It no wing of nd. ogn 2005 wi d just ac as coordinat lists. LaT izewd is academic in ted to days. ce s erec said. “O sistants Si-ed The brid cap is $3,00 are $1,500 wath m re cia m’s administrative teers ranging mo rsity. hous The Pi d are 100 pe ute Bloom 2,alhe Sp she ha th another pted a job Molly M forldthe Lo an 0 per m r fie nk Fund In 201 un ge to wo State Unive Sinai-Grace sees tim ding the rcent in a d her co acDona issues n the oth in ms gra DeDyea H onth. d the real oking to th res m ers also 10 vol . rk,” y ill m mb pe s iwhich ec annual mpany wh an office ld bbing vic Sor faofr, tal Because erg Th re are ate students to me mke r enc cal teache Asso en ge . of fu nding on th MacDonald “It is a sis izes that a e future, Mac , M.D profes d were no d The Piem mamm un und and sta es averaging The uyi cirke Hospi d a su Sonfo wo mace ates bipe m ndous me gradu breast sionals said. De rge e nd nk Do or tre has op rie m ha ulo og m cha a -Gr o do e . gunshot wo— som fro Fu is Tol na sy s dis s als nai ra pa sp metim na th re mul ld for the nd haatio came canc m, ap shows paid an He - On and m m. other munity. her cathat has outus Wemget mm $2.5 mFou month ys out 8ab tion flow, ives such 2, pro s pan,id backsassaiicd.io“W co e is “fi tiple impact er diagno “How the com Thisart, then Gra than any as 0 gra in its ER son ill nd out $5 ce ncer, fo acity,” dency 00 wo out the in PAG MC execut nately, mpetitive canc W nan Wi sitos. A “Th do d DM ” yo ided of , nanc s on per day — n ebu m m, enbin kiemRo ne E OMbe bac Sinai- six week em ing toFR But th to lan tio Jac , m tly io capur t roo u sta me er Alk ouks. th One day 00 pe rcuts. ienve d nattre Sonuyi sai llet, Sinai-Grace pre C patha nearly , Sonuyi dec nearly two ward ho fits with 58 0,0for initial and a br rt com e De nal, m ial toxicity people. ekswith the s of da es we atm nutro in Mich at remains it andosthe a jobget hair bi otio m neeAu M eaeth IVE mbe M chigan Mi M Ma tog en’s DL st er enta stat-Fi ,” or (afam At the ily rato rcent go t. ing . in litat M D., DM canceat ed 20 rs of wo in Michigan. innd iga we whthe rem “W Fromhe hop gill en yo esre We mos us g. s camepein ) ily hospital in . as Conrad eschi, M. dia- Cease rece er ,di inIf the g Sesee s u weighgust uyi y can - Mo it financial and physica the m l wh 05 idea the Slowin n for careg two , ,add his treat agno ion Tony Ted tlyfrie s group ril en burd pro ing usand su she dis yeaAp said m m. the inen rece t Hoffa to thro the pp men e.ort iving tem r wh “OSon sisces the toen deaen lly detive of his s l d ut l ugh ot lag . to take act with the grassroot 2016 dent, and th sa see por ted sai ive rea sid Vil ug dn An , an he abo bro s po t? er id thi sup th nec bu the r h ” d r e ’t is in n sw s ber emaiwa rary ivid we many e com t the wo duced eff bee grh in t late Wer talk Receiv l wit ment. men I phone) the bar or“W treat job.akfast. We acDdo, : She theyMcan thawo fin ual ls s con ga W rking Wo nge Wenidea re’s on , Sonuyi in pi- CEO, have men o Detroit ankby ca ects and al g. en acoffi ciaal knew rk at zatio ow Oft l. k hired. whenMogill going munity have tionce(o th Theindnotraan are bre overy. Wh l be not m W ateverdidn’t take ald cha r’s Keeper ncer tre hos um DLIVE int fir stat hace. sa fft.wilTh to time, they hgea bac d loisng to vionlen IVE ey plt of DLha h velwathy. and “W k hal friends,” us s spre es th ngsta rec the details staff ofIn mes stead, M Brothe IVE, the first My to expand ronmvire com pre s and con atthen mo fit sa st is silence owed er munity serve the pe advio t np eily po hise have ro levhels of t theirhis rfam ut so DL tal. If all ” acDon ic theycep , thoug ion prowoul gooad mM inroabo id. “O ville thr r todow such eivesouthe dc rs eashigh ug en soJim o have bee talsth ver my, money He wa all 50 weHo Th bas The founded s aas ing Hospi , he said additional me help them. intervent ugh hav t y og grant this ye tsdwh re spi abilitie care needs of bbin se th DM ated terrifi rd the . ancial sai MC. ha twe agreed to pad loive patienal tre violence d. milar nds for treatm sonpr and cr r in a“Iqu metim MotnorrecfinSon in PinkDLFo ” Pi .” rams th ar to do a sim Jim s and IVE iet p uyi spon ed jobs ndmy o sur- so exclus Of the 65 90 percentdhav pted ed vo lovg, tal-based chigan. DLIVE sta perent an they worked out and trained som y billsto eirhav yin ” and “I Co zia al t, , ado ice se ” Do Ce d. e at g loy an tha ni rp y sai l, ha , of lg hn ‘Th or lud d “I ta .’s Warspecia dy MacDcities alsor Th ver ed o gilly te ctse an IVE M y, ver Donaldissues?d financia lk abou citi , inc Hoyle, ryday. Pindzia Mopp delun k yo mioeffeen onam m “Nobo riors seion m be mo ars.”a very,an gram in Mi ention ableore D will be hir part of DL the program. d erv al said. 30 onald ervloent at stre u, uable Eve pu Sn wh dic th t l ’ int n Val and iss sa Th The me ns bl ei ap Is ce o the a. bee id ues,” M m sourceThe violen sa r hoBal ic po son ple ho characPo terbenefic of tim no come dcasts n.is for usin who has bas have any l -o m the ide pre- this year. “Th Detroit Life e gave me to be part acfrom hospital intid. in St. Louis, s: one- the iariesper the m any em icath He help licy with Th w in hisw to nego g, lin will d ed crit saicr e st beab n re-injured uyi, adding als Did esHoffa re ai,”lsMo m e, even e tmmu gill givtia itors capacity “No one cas of seeing a lot of tha providethird tion frogill Mo te paym help peofar has bee m, ain ” he out receiving exprn’t d Son ing hospit ship m nner. Did days be ed the organi e A , ho thyou ts ic d weighs on D.C. uyi ists h the tw ankfnse rela each being uldm s tell gram ” sai are either now ents wi froto itaokza sm “Ourtosuqu come a mulation m occ itsp ls and W shingt m California, Son tions.therapeutan corpor ngs accum able to wothequ ing that wit nity N onur, Need ou spo ulnema in our pro t ma and Wa th ity on ss tolmd him ganiza -rean 501(c) ti ickey fro ate soluti-ons to th mu deaths, see the com sle c all other thi vas m jor tion. mm ent or rvey (of 587 review bills d fin . 3 tax zed in the ree from ice Originally me ventable traum al?ly“I na- m-e funds relie istiep at al adv forged for ms, keys and do . people survivo are stabili ins the that the or back in school im ni dical deg Me dic ma in to d ts “Th al gh m me ity ate ien ce dic .” fo t. com m ffa ve of un e his gem pat r M in treat nt (of rs) show Or anxiety beg ed The an est opport After hohim rec d. “Th I saw mployed ubiquity em within the en treatment; Ho wom magni IRS at the tim tim M chigan d DLIVE in s th ts receiv y of Mi said that ryab oue pah,” w sk alled. we have an inner sai ho fyi issues lie abled ing eve resources t ER, W Winans sai of visiting them and But Sonuyi y eligible participan yingMogill ipped treat en with brea at 41 perit savepaid tcas I thought Universit decided to focus on nry stubborn helped ng glass on e wa them w“Th s Th re are The . benec ey tici ces d m st ca ing iall th He par pro con no IVE en to eth us ent ca at us to ve eir and m e np e threyfire t (at on pot nc pay fo ool avoid by DL ions job, do som was a dis done,” sensiti m nity.” mu change m dical car troit. me r car IRS sc ro e time) er) ffi- Sch coul ut their opt During a 48- 175 ld not be assessed l lacks suffi but there ysaun id de d insurg mergency DM em bein De the city, stil talking abo program. su cou t getting m rr erfro . “We need dn’t aff rectorsh from a co-o rutin .” r at MC uate city in ord program it wasn’ perativ nt. Know he ser ients will Learning ip toved addres it,” she t connector because pate in the examp cause the or there was inadeq ore Ford and late m le, pat The go ,” she said. whereledge is eiv ALLIE LIVE is tha ector, Sonuyi ed s r stay, for the Army, nt staff mes. patient bef he recpower.” this upSonuyi. “D me to be pr al of PPA, sh with the m dical dir disciplinary hou ited four to five tim them in the cie to me ore joining spital in Europe, D at et 2 Bef IVE e ov m P sa DL 194 id in As id, c vis RA8th ing in-h me tim m ltimu nity-bas m et Field Ho yne State work- be om mes we me es a the CT m tim room or in “Some ree from Wa ernship year at the coordinat tors, nurses, social vioso peop ed personal e and c degIO recovery alIT Nhis int s, assis le with his medic ma bay, the team of doc health specialist and traum completed ER disabilit tant s er s age 25 and morial Hospital. y. I was a Jewies and m ntal specialist ng with oth ut ers, me to b is worki Blain Me ervention the Arm tho o int go W Wi Tau old int r, s to ce t get nte Kid len bu to By Ja on the and Ce “I fought no choice gill said. . Leu H y Gketiativene mia (ALL) Re- researchers re can. I had ,” Mo inen ic leukem SEARC rafish Ini jgrneecan @c cer rain.com e ish-Ameri f a good American ML). rmany in mphoblast leukem mo mia (AM lym Cancer Zeb st com mm sel OGY RE nce and Ge to realize m mo Fo prove my new testm eloid mngefor ournti ONCOL years in Fra acc acute my m a is the came developed ols that mi zzy —ceror the s. than 20 ye During his Mogill gradually and teens, ee ers have en toc Congr can rch th ldr pro ject to at ar 5, sea e chi thr na s, Naja4 and 194 CEsO of h ment mes atulat treatm s were sub dical team metim by Kid 194 h Baone out of tio l, an som Jew ients wit and ded Za ost io ts, pat the m fun me m ing ien g ns alm an Inte atrocities Inup atin to Jam ld. I kster-b is beingthat he with pat gro tion . When his the rnam de tre safe. r be lpst wo y are afochi es Fahn nprofi Th work The tionships Germans visited concentra ing. nam have ma no ctive and r, a th n anased nohan men when the old emen dsfitof the npro er, MD have a ed one of the and selve m re effe mo havse bee ut Cance childr th ing them who was 6 years wn wn d tru tho loaded any see y Do Do W Wi ch rm ugl of h , ou d, sp r wit the 20 t spereene ient ev Ho erelld Ge of pove ildreent n pu mecrrie ma .,Sp himself the — ren ents whose atai tru He the nuns 18 Heal a dona erything in “Children position (10-20 By Jay Gr ha’s have a pat Child smibe 20, an R.N mes inm to alth rain.com he saw for to the camps with cerstrug ke- of par th Care te to tte dis me end he rty and glincom cam jgreene@c w inspiramm Helen deps, l com w he is age it to th d refrigerato a truck, foun g to Heroes greater pre risk) to develop leu od treated for can up lp went . They told has M.D., dre DeVos b, ra b, M prdouTau bout No a baby and who stil "issai r an e fa . locaust. “I e of the survivors g off. chiseatkids ing famHo g pares ear ilies Th gro aginthe The d to ha Childre understo Jeffrey Tau own childhood t higher wh al. m m, dy re has , cen pit ilin som m mo bo ta elmed mily. “They d delivered nt d tra d ve No ke wo at s his rs ate n’s Ho ce fun rkforc y me his someo to beor alsim careand ML. m dic cology with m with we spital onth that docto of tre said Mogill, his voi returned to Detroit “We sta 6,000 to a and AM e to fin ne of to rsit tion from when he decided see me pl m mi ing $35 ive ef y lik add Un chi e jo e health d, e d n Ba rted it gratitude,” re overyou wh gill ment in th stoeries,” y,” he sai yne State nu ck in 1996 hope out that she sa . r, Maj. Mo idency. But despit rect treatm the Wa with cancer iatric oncologist. the divisio ce 2011. o an wh Su W wa cor is d ch the de sor we the to ogy id. rse spec rs ho, pe dicated Bazzy, After ’s sin ll-bein W nd ic oncol Mich me a ped nadian from Wi d to take surgery res s of returning sol now Za was the begi way.” ool. iatr ualize it to com Children g che ia his nee sch a ped ivid of te liz ear ig su re gm ind ple kid res in say an job gi lym nn are es m Ca d g in tra ste to com s from an Inte , waspesticides and be ing of roach and ctive. Taub, a e away his Hodgkin “(People) g, stressful, challen protect the Taub sai womm nscultu red “W gav to app wo what is ac for rn yo n l es d ria ro at mo e nd in rk rul m in ate l gi io effe om ss mo sin in od . tre tor be res ral is-federa Me if com Hospitch in ga spe spital at the We ca ve people th nal. who was is so dep see what we can acc proder Blain patient to principal investiga Chil- find out De ital an chi sw ren’s Ho a xan ild is ol ll lCh Ale res ei flip d ar it t a r dignity his born, no ‘one-sto tha ma at k diers, zzy, wh miadinMedical Ce OakTaub was phom ncy slot. ges as a gen ing. But we Taub, who also is mpleting leukem through the olled triggers ide vile com ba g w p nt dy res ed pri up sin ar y ck Be o ho Th stu spe ow cnt ed cle is d ger . cau ere wa sh havau pe,’” sa e mon er in sur e him pra CEO, ch travelin and end m lti-site 1977, end plish,” sai up that enr The cific gene,alrese zeb ’s and has a mu t Dear spital gav id Bao private the ie and ady lorafis an Ira pediatrics cer research Children eer at the hosborn. Grace Ho er, so he went int cology Gro 7 to 2011. “Th qinfam m and m g minister fo f fundraiser create colum st on dency at fessor of dren’s On ily dren. Becau tw and edical r spinal d wh iatric can ool ins in e of be practition , who later helped e. 30-year car t of Detroit en from 200 high,” he said. ose educat preventive ir in ped te University Sch thethe can thbre eir tw o had eral ns wh his entire From 204 childr w par practic hoysp Adbe Mogill n, care Sta m- ski o baby minsee Tenet chah Wa At the were ver y ich is no l’s es tice, said istratokem nt of family troit office near family 1996 to 20 ion. gen m st com iaita neand pital, wh nter and owned by wit W yne . “It is all worth it. You cure rates atm onor blood can , the mo rsman termma departme 04, Ba leu at De s ent n wo al m patal’ his m t. col in d bespi Ce by ine IC rk tre ned hu n zz . al ed ho bea ite1ct9or, 2 0 1 8U. ed ou rented CgR A I N ’ Sexp Deri E enc T Red O I T B U Swit IN Ebe S S // tur M RC Hdo M dic -wh thneAse h the Me M dic off Durin s had t of th y and her 6, Mogill ope a storefront locatio and be up14r clinic.” rp. in Dallas in Can- of Me ou co ed cts Co y sa 194 try e t urr nd effe In ve tru The e car de we occ ool eir ho d andleukemia.twin co d. furnitu ou cks, pi ic Health s that m n sid mo studieve Hotel, in p want e streets. me, cked re, ntyila me m dical sch rn Ontario) clin a lot of laughing at laughing is uld no a dev counts re infection did see torelo the Seville oro and Charlott we to t “I went to y of We s,ed received clothing housing ite up donate an hear W ste tients we white blood cell whenfathe erb for the mily ry dstufedie th and office, he d edingWe arewiusrsit m and de I never ice. ir lim obina tween Pet died due je edkem One reason entertain young or ia. suppor draw “In pre ada (Unive residency here. livered s, food and opened the e him some adv families when the children . Bazzyelopctleu t. The el,” he with ks. To m Before he visit . But no it to ne $1 becamnow and my interare. If you caller gav s. fish dev to this lev and did my m gic tric ma were low er their come edy cratic you ites you2,000 in met inCO-WINNER, de e their des,” said mplication study that thecatee. In e call. The pulls would get tici I don’t mo ients aft com on I c es t De pat pes be. ph le a m dia de to ro ugh ss er su etim how on tici facto Origin wh g m tho bseq to car Najah than m ant eruepes sh inghearwe ally foun Detroit. ge, I know e to black and else- old ment, Taub som scarves” or a M.D. adatvos just me pioneerin ing,tes t oth wh b, rafi Ba eor nt wa r go er “G Tau zeb we “It ra zz m sh s n’t oth d. rey atm , y ans edical An g e wa did which sai ADMINISTRATION AND VASCULAR RESEARCH tre h use wais r practic y for e are trysing abtoCO-WINNER, ver-endinheHEART regrets I three Jeff is Arab ded as Bayt earch men- est olved wit environm hics ng).” weetcan open you and lig to pe sho Al Za ndws iety of res m- Taub is inv ic fo have any nego baby ... le I ho ncy traini b be- out the “ne where he le ventb.ila“Wthekem evossiz ht “I was k genetic and d to child- Tau ter reside ches re is conducting a var, leukem mia, lym Zaman , Bazzy chan r house of ho hr and ia. to go hom tiate a su shocke gerstoleu where (af cer sur vivor, Tau der- string tric ings of all different onild to identify that ma wh trigen ns.org ood cancer e with m y lea ch e he pe ged th r.”feeding sheans s non-go in 2004 wh By e Greene a Ba poverty in d. I had no wewe nam m . As a can help children un es separate str bine them into d the tu nt on childh retinoblastoma tal factor mia. shfin en itJay the co vernm e wa zzy, wh t seen m can single ences com “father, s shoc to the hom bes. But becam e to kem t anxieti a and m sci 50 to en jgreene@crain.com a o leu ges o m Bio m 1( and ly int ta om lar od e gr un lieves he k c) on e ke ph l or ni come tered. e ew up for a vi 3 tax-ex d at wh egrativ l- ho led the then bac challenges ar in the ity,” said zation an CEO of empt or gaChris cer diagno W U’s Int “We mes for chi Taub has At WS com stand the string and baby string be stuck at 50 percent. We started at she enco sit daught ea of East By.” Jay Greene lo and with a can “The ho nizatio Allen, unparticier of a at Chilsurvival out drome , acute and Dearbo wer inmand couldn’t ke ga r on m m y have ent jgreene@crain.com and the m dy m atm m n. they ma m mo ve on stu e treating patients in a systematic way, Health, is one of few heal U. tre Syn ep up and ne teran. rn, th was ly carp S. Ar of the treats the sur vih Down said. wi eded ecutives witbeen “It is part d. on theandbare. There sis as he hospital’s annual we didn “We didn’t my Korean W e 13 of dren has monitored the use m the et device” Southeast Mic William O’Neill, M.D., savto expa thinde fam floor, wh sai was patients, nd,” sh to In 20 pates in them. was di ’t know it have much ar dren’s,” he b isn’t see er began quicklybrou improving mgh ily msurvival has worked ing ing lives since the 1980s. But after dee improve h m at the fferent but on our t the ba embers sle e all the 40,500 16, Zaman W en Tau Wh .” tim vors progra 60 to 70 people relaba pt rates. for underserved populatio cades treating patients for major heart m m by sq Ba sk . e. This et for a to me zzy we m Trowbr uare-foot bu oved to a ne We have elop long-term in a la They mot “W cr nt ib After O’Neill presented the Detroit a hospital administrator a attacks, he grew tired of survival rates ho id ,” w her undry said Ba me manity ge St. The ilding at 26 W dev m We furnitu to gather up and told team. initiative at the annual American Col- zzy. decades working stuck at 50 percent. So he did somem Ho last two 09 Center 1 her re, pots all of times For issues. build pe spare Hu m lege of Cardiology Scientific Sessions By Jay Greene health thing about it. to brin and pans th the extra cations ore space as ing has ei g to th ey coul gh in March 2017, Henry Ford was bom- jgreene@crain.com In his 13 years at Author Using a tiny heart pump m and his . its t previo e d Supp lo-spearheaded a barded with inquiries about how to Allenushas powers of persuasion, O’Neill got comm James Fahner, M.D., was the firstfamily. They 240 co orted by do no use the method. that have add peting cardiologists at five of the largest pediatric hematologist-oncologist tions mmunity pa rs, mprojects ore th and 1, anhealth problem Now the program has been ex ex- to be recruited at the new Helen health systems Michigan m in Southeast M ner-city 500 vo rtner or ganiimproving luntee from za panded to the National Cardiogenic DeVos Children’s Hospital in Grand to develop and test a life-saving methmeth m prenatal rs, Za man the primary care Shock Initiative. More than 40 hospi- Rapids 28 years ago. As division hancing odology. It is now known as “the Detals have signed up, he said. pipeline and expanding chief, he created what is now an troit protocol.” be- 80-member pediatric hematology/ By this summer, O’Neill said he be health services. In July 2016, O’Neill and more than a lieves more than 200 patients will be oncology department, which inBut his latest passion is dozen fellow cardiologists formed the treated in a clinical study at hospitals cludes 15 specialty physicians. how to become a “popula Detroit Cardiogenic Shock Initiative to in Chicago, executive,” said Allen, a U test the model protocol that is begin“Our program has grown and James Fahner, M.D. 1 8 Los Angeles, Atlanta, New 19, 20 York, Massachusetts, Florida and grown. We assembled a multidisciMichigan graduate of h ning to be used across the nation. ARCH PAGE 8 M OM // FR ESS Washington state. studies and administrato skyThe initial results? Survival rates sky plinary team, and it required me to volved in Make-A-Wish Michigan BUSIN her late T R O I T William O’Neill, M.D. O’Neill also wants to expand the take a leadership role with adminis- the past 20 years, first tha Osteopathic Hospital, Hu rocketed to 76 percent from serving a of S D50Epercent t cameasout R A I N ’treated over a panies comand initiative to smaller hospitals in Mich- trative oversight,” said Fahner. “It is boardDemember for the 41Cpatients later chairman. assisttal and Detroit Medical C Via rm, earch.the national ices that 10-month period. These patients had tured by Abiomed, a Danvers, Mass.- igan. “Sixty percent of the shock not something doctors are trained Hehus orrecently joined -1976 to 1995. ps devor band’s res con elo dev and al chairmandis dicfirst Meits heart attacks so strong that their heart based company, which funded a comes into small hospitals,” he said. for.” ganization a ers for im- “There are many defi es, oford eas HBeat as dis s of 16 rce O’Neill received his medical degree muscles went into a state of shock, national review of 15,000 heart papopulation health. The Still, Fahner, 60, a University of national physician treatmentadvisory power sou s skin ach asboard. with the rt, suc heafive in 1977 at Wayne State University Michigan medical school graduate vastly diminishing their chances of tients treated using the heart pump. first coined in 1979,” he sa Over the past years, nearly rm create of the ditions ps. ViaDe of tubes od pum infection survival because they lacked sufficient “I talked with my friends at all the School of Medicine and has been a in 1983, took charge of the fledgling 550 pla more academic then. Now treateligible children whouce were e thetreat nted blo red us surfacmore ices that were blood flow. health systems. We are all like-mind- physician leader at Beaumont Hospital DeVos department because there ed atces on what we know is DeVos referred a microporo accelerate s devChildren’s ng usi by to skin Michigan. tion Cardiologists at Henry Ford Health ed doctors, all competitive for elective in Royal Oak and at the University of was great interest in Grand Rapids to Make-A-Wish in lour city.” Last ura traversing tes cel multiplica nat l a of N IA System, Detroit Medical Center, St. procedures, but not for (cardiogenic) Michigan Hospitals in Ann Arbor. He from doctors and community lead- year,tha And Allen clearly is pe mation numthet hospital record num stimula had a te the for mo PHYSIC pro John Providence Health System, Beau- shock,” said O’Neill, 66, who is also was dean of research at the University ers to develop a world-class chil- ber of happening in Detr an ling and with 148 children higwhat’s heareferrals Mic at d l. sea hospital hea “Detroit only has two s mont Health and St. Joseph Mercy medical director of the Henry Ford of Miami Health System before coming dren’s hospital for western Michi- treated re-ere at icthe being re dquart biolog mouth, a ies arewish grant ter in Ply nom to Henry Ford in 2012. atMedicare (Hospital Comp Center for Structural Heart Disease. Health System dropped their competigan. The last six years, DeVos ferred and grantcompantheir ic Thehaving er, tre ovation Cen Eco togethto workagreed O’Neill also performed the first tran- Children’s has been recognized as a ed. Life Sciences Inn ough the Michigan “(Those patients) go directly to hostive ty) ranking (for medic issuae,new rs. They and lthuse teenatures hea thr volun ed blic pu nag a an Impella heart pump ce protocol using pital” when they have a massive heart scatheter aortic valve replacement top hospital by U.S. News and World hospitals). Why?” he ask Eachfacday 50 to 60 children are ility ma violence as injured by violen ir Corp. ing on patientstsshowing signs of cardio- attack, O’Neill said. “Everybody knew (TAVR) through a catheter in the U.S. in Report. is a study on Michigan’s h treatedDe atvel DeVos with chemotherachemothera opment eene tory of the help patien jec By Jay Gr to tra .com urain theThe Impella is manufac- if we didn’t do something we would 2005. genic shock. 83 counties. Wayne is at t Fahner also has been heavily in- py and infusion services for a varivari jgreene@c change ysician, Tol history atthe list. Fifty-six perc ety of conditions ergency ph n too many and d the Making in the outpatient 7 removeof ervention As an em see lives. team’s int ny residents in the city live unit. Another 18 to 24 children re-196 re , M.D., has bbing trowitz in ted it into Despite the still sees too ma ce lope Sonuyi with gunshot or sta SiDr. Kan and implan served areas compared w ceive inpatient each dday. The uyi len C n When care dea baby l heart defect, he beinto DM young me tempts, Son interpersonal vio ER int bra a ugh numbers are growing each year, he cent of the hospital beds.” of bro of the heart y with a fata m a human heart wounds survivors d from bab a rge tal. of is ce spi st cha for said. He also believes hospi he len d Ho to per the che y, and s of vio tinely dis t only live nai-Grace t doctor firswork on victim communit tten rou “I am proud of the we do forthe patien bec a am more e a effective job in re came the One study and recidivism, wri ns back into the U.S. While IVE. in thereceive these children. They the operation admissions within 30 da cia expand DL number one ERs transplant f hours, the transplants that are treated in by emergency physi uyi looking to a hal is the e nts and best care possible,” he said. charge. “(Hospitals) disch icid tine ide Son six 0s rou for As hom in the 198 d Hospital, where 1, reard the Detroit res ether In 2012,mil Fahner faced a cancer of irethem lab back to neig estone tow death for hered tog at Henry Forhis residency in 201 who cause of ay. made him ved his ent todthat uals. Sonuyi gat scare of hispos own, where they have problem sibleone se ineers trowitz mo geons, eng completed 44 percent of tho aults ages 15-34, like-minded individ C 0, Dr.toKan sur 197 25 DM rethink what it means be a papa on you,” he said. t h ass In of m tha wit repeat ding fro along ported a group troit. lence had z assess the ba t endbetter tient. He was a brain ed grant fun ss Blue Shield m Brooklynwith spital in De the KanTo frodiagnosed trowit suffered vio rs and 20 percen He garner to Sinai Ho e Cro nt, a yea residents tumor. ice, or of Detroit, All and nurses h a $3 million gra assistof ation, Blu Skillman Foundadev within five d Found 2, wit ular the nge 197 rt doctors in train made sure With support from his wife, Gail, tric n, n. ng. In cha hea ven atio dyi c t atio nd oni nd en’ ed up the left with chrthority atedtypical crethe tistics hav an emergen- Fou and the Kresge Fou DLIVE such he went through emo Health’s six prima teamall d patients a perma nent imweemo“The sta tion now ns, ruited for which allo l with ce und Sonuyi, idency programs conduc tions a person diagnosed the LVAD,newly Sonuyi rec ders as Calvin Eva to the hospita zes co-founded much,” sai at DMC Sinai-Gra leavethrough. to goes s lea wit n Emery veys on the “health to with possible cancer ure r tro nan cia nit fail nte Wi ysi gy. Kan mu Ce ph olo al Ray cy com hn 3, the In 198 - treat. ndent ct by Medic they After surgery remove they LVAD Tec patients Berry and ervention speplant. to pan g the fail der contra vices, an indepe yne Michelle int ice com devfound ans of helpin“When they see pati proWa dical growth, the tumor was to be violence me Ser the h e me is as wit cy som ve ed son gen ser ned liat a Richar or. i igroup affi dents ask four or five “He envisio lists. LaToiy strative coordinat g ized as clinbenign. academic ini gin Si “I did have a pretty remarkable Siwas recogn more cia rsity. about what impacts thei In 2012, he the year for the iState Unive Sinai-Grace sees tims gram’s adm o 10 volunteers ran ers i mb als bump a few years ago,” do they have transporta r of y resspeed bbing vic Because There are ate students to me emergenc rked cal teache , M.D und and sta raging Hospital lems, lack of access to go wo Fahner said. “I am so very blessed mendous gradu rge. pe Sonuyi ace tre has m ulo cha a -Gr o gunshot wo— sometimes ave fro is Tol dis als nai re y. h er byn, comparison to so many others good housing,” Allen sai gram. He “We get shows the ndatio has outcommunit C executives suc n any oth d. pro is t Fou sai the tha cy “Th tha s in its ER of — son 8 den ce nan E d Gra si , lan I usually FR per day OM PAG don’t make much developing population he Jackie Robin the Alkebuthat uyi said DM Sinai-Grace presicapacity,” t room,” Wi and come back to uyi decide at Sinaithe ien d Son Son h tial ts. One day , nearly two pat nee ini wit rcu , gan and er C Michi DLIVE’s comment about it at this point.” thatthe allows us to m get them re Detroit ily togeth e in for hai boards hopes to nrad Mallet eschi, M.D., DM ed -Fi we fam , Co cam he igh ase s hospital in . as eat the Mogill. At we Ce nd ing s frie scareHoffa to seeligent y can it Fahner said add hiscancer ion Tony Ted Se- on wher s group decisions andthe of his idea l whenBut t Sonuyi, the proces e. r when two them. If the dea tive l d ut ugh lag yea to take act with the grassroot 2016 dent, and see por s ted to the sai rea Vil abo bro thi sup nec h the uals his perspective that later the barberof ’scancer uyi in ast. We talk ver they can do, we have been into Detroit Receiv ce was con our next wellness center.” individchanged e deal wit Working O, akf nge Son offi “W , en CE bre cha ed. Oft per hir gill are l be not Whate r’s Kee s,” hospiumahow he approaches DLIVE lway. violence. ndAuthority patients. Allen said He time, Mo us traand re staff wil cept of DLIVE is the details staff of recovery. My Brothe IVE, the first to expand comes to h a back hal family and his frie of previo n nd con been mo DL tal. If all e throug ion prosaid hevill began to under underoffering ay goo two-year certi in about the dowFahner high levels p them.” The basic who have eed founded ing Hospi , he said additional intervent Jimmy, his was a ver C. Hospitals a similar have IVE then receives ated dreadetime hel the 65 patients violence d. more clearly “just my. Hepopulation nds for “I trehow health. “Whe stand dread ive to DM uyi sai t have agr DL Of pted tal-based chigan. DLIVE sta worked out and trained som “I loved Jim very loyal person.” “I so exclus l l, 90 percen have ado del, includ- and of that,” Son ed ay. comes into fulcia high-dose steroids teraresai tod.thever ter Mogill es? our practice y, very, t of DLIVE program. “Nobody n 30 cities also issu am effects intervention spe mo gram in Mi Is Valuable Everyd will be hir par al stre a ion dic and ent The me ore ce the out of body a. erv son of the tim any code triggers questions rifying, experience one per racterwho has bee “The violen critical basis for Detroit Life e gave me the ide pre- this year. to be part hospital int in St. Louis, Bal ffa have gill said in his cha give Hoon st be n re-injured als adding e the said. “These are social de has when it is your Did name that Mo capacity “No one cas of seeing a lot of far has bee m,” said Sonuyi, . ing hospit ists provid relationship that mu Did Mogill oktell you,” h the tweighs tion gra ngton D.C er now ur,” he Sonuyi ic showing a massive brain spo tutu nse manner.of health, sm we are fi wouldn’t quit and accumula ths, seeing that wit nity Need ou in our pro t majority are eith and Washi from California, from therapeut other things to occMRI to -re him tobarriers told what in the mu dea ons It was humbling all our patien mor. and istic quick al Originally medical degree advice? “I ventable trauma in the com ity to stabilized that the vas back in school. forged for s and soluti are dic key d ts al the s, me ate ien dic .” or com ffa of ins un goodd. health.” life-changing, and IHo hope enhanced him “The gem ployed opport After pat eived his t an estim hin the gan Me IVE beg ubiquity alle time I saw and em t Sonuyi said tha participants rec rsity of Michi us on inner said. rn issues lie wit ces in s said DL we have an ing every d cash,” Mogill rec One of the problems the quality of my communication iting them Bu ive are resour nect ER, Winan I thought stubbo d to foc be- Un ey pai paticicess of vis ing. There ially eligible “Thyoung at Henry health care with my very courageous and decide e delivery syst do someth t there was a discon e,” sensitive pro their options to par 48- 175 potent assessed by DLIVE munity.” r fir dical care it. - School de me y un a ut suffi don be bu enc y g , g ks abo competition for patients tients.” er Detro ld not l lac emerg Durin the city talking t gettin ng surg will cou the program stil inadequate city and later at DMC in program. .” it wasn’ vedofincoordi Learni results he in ser lack Two years ago, Fahner was aps t connector uyi pate in the example, patients because cause wherehealth systems there wa ient before Ford y,tween LIVE is tha Son pointed the inaugural chair of the received and es. r stay, for nt staff or pat Sonuyi. “D medical director, ing the Arm Eu rope, he ry hou the cie with the r to five tim Before join tal in providers 1942 at unm national Make-A-Wish America orto address As DLIVE a multi-disciplinark- be visited fou we meet them in in time to meet Field Hospi m Wayne State in r at the es or wo 8th es m tim ial nat the me fro roo ganization’s 20-member medical Allen wants soc ry s, “So p yea to change coordi al degree tors, nurse internshi , the recove s, viohis medic advisory council. pleted his the Detroit Regional Hea team of doc health specialist and trauma bay tal. l 25 and com s other l Hospiorative. humbled andage honored to Representatives s a Jewng wit“Ih am ers, menta ention specialist Memoria o the Army. I wa go to ut some of the b is worki work Blainchilerv tho int Wi Tau old int with best ous public r, s to private h ce tand nte Kid len to get choice buhavesaiagreed keand Ce “I fought rs on the d. H hospitals in the country and . I had nonizations to ive. Leu ia (ALL) researche rafish Initiatdren’s Mogill ARC 841-2200 leukem 950 University Drive / Suite 300 / Rochester / Michigan / 48307 EWest in can,”community S in eri -American cer astic (248) L). Re- www.miller.law E Zeb Am ish anyhealth obl can R r d some of the absolute experts in joint (AM rm n ph Y ia nce goo Ge lym Ca self a OG st commo ntifields,” nce and The lizeof t eloid leukem ped new testprove my sessments. goal ou ng for Fahner said. a is the mo teens, acctheir ONCOL years in Fra acute my elo came to rea that mi the have dev s. During his Mogill gradually and ols at cer ers en to toc can rch t ldr pro ee jec 5, sea chi 194 es Kids treatment patients with e out of thr s were sub dical team 1944 and ts, sometim ing and g almost on is being funded by up ties the Jew his me with patien y are a child. I gro de treatin and safe. the atroci Germans. When centration The work tionships have ma e nonprofit been the e a visited con th of the m when the s 6 years old. re effectiv e Cancer, a hands of seeing the Down hav Down mo Without ildren hav rmany and o wa gly tru

’ CRAIN

RO S DET

ROIT

MOGILL

IT’S TIME TO RECOGNIZE MICHIGAN’S LEADING HEALTH PROFESSIONALS

Najah Ba

zzy

.D. Taub, M y e r ff e J

Cra n s Hea th Care Heroes represent consummate profess ona s who save ves mprove access to care and find nnovat ve so ut ons to press ng ssues n the hea th ndustry

SPECIAL REPORT: HEALTH CARE HEROES

Winners and runners-up will be chosen in six categories: Corporate Ach evement n Hea th Care • Adm n strator or Execut ve • Phys c an • A ed Hea th • Board Member • nnovat on n Onco ogy Heart or other Hea th Care Serv ces or Research

trum Heal

William O’Neill, M.D.

Chris A

James Fahner, M.D.

WITZ KANTRO

S P EC IA

L REPO

A LT H RT : H E

E CA R E H

RO ES

yi, M.D.

e Sonu Tolulop

MOGILL

DEADLINE TO NOMINATE: TUESDAY, MARCH 5. Visit crainsdetroit.com/nominate for additional information.

Leaders in Complex Business Lawsuits and Class Action Litigation

. ub, M.D

Ta Jeffrey

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

ROUSH FROM PAGE 1

COSTAR GROUP INC.

Bloomfield Hills-based real estate investment trust Agree Realty Corp. will double its Long Lake Road headquarters footprint this year.

AGREE FROM PAGE 1

Agree Realty has nearly tripled its payroll from 14 to 38 since moving into its current 12,500-square-foot redeveloped building and plans to add another eight to 10 employees this year. The company — which had $116.9 million in revenue in fiscal 2017, the most recent full year reported to the U.S. Securities and Exchange Commission — anticipates annualized base rents north of $155 million. That’s up from $43.5 million in fiscal 2013, an increase of more than threefold in just five years. It’s all part of a growth, diversification and acquisition strategy launched during the recession that appears to be paying off. “Agree has been successful recruiting many young and talented people to come work there and train them into industry leaders,” said Jeffrey Schostak, president of Livonia-based Schostak Development, a division of the Schostak Bros. & Co. real estate firm. The Sherwin-Williams deal, the remainder of which is expected to be finalized this quarter, is the latest in a string of transactions involving retailers that Agree believes are resistant to the online retail onslaught and offer what he calls “omnichannel” experiences, i.e., multiple ways of shopping both in person and online. “We don’t see significant e-commerce threats to retail paint stores. First off there is a service component, color matching and mixing. Customers want to then see it in natural and artificial light, you have to try it on the wall and experiment,” Agree said. “Sherwin-Williams is the only material sale-leaseback transaction that we have executed since the launch of our acquisition platform. They are an industry leader and a fantastic partner for us.”

Internet-resistant tenants Richard Agree, Joey Agree’s father who remains executive chairman of the board, started the company’s predecessor, Agree Development Corp. in 1971 and developed more than 40 shopping centers in the Midwest and Southeast over the course of two-plus decades. Then in 1994, Agree Realty Corp. went public as a REIT with an IPO of 2.5 million shares. But in the years that followed, some of its key tenants suffered mightily. Up until its 2010 acquisition and diversification strategy, Borders, the for-

mer Ann Arbor bookseller that filed for bankruptcy protection in 2011 and later liquidated its assets and closed its stores; and Kmart, the troubled Illinois-based subsidiary of Sears Holdings Corp., were two of Agree Realty’s top sources of tenant income. At the beginning of 2010, 29 percent of Agree Realty’s rental revenue came from Borders, and 71 percent total came from Borders, Walgreen’s and Kmart. Today, Borders is no more and Kmart, formerly based in Troy, is no longer a portfolio tenant. Now Sherwin-Williams represents about 6 percent of its rental income, while Deerfield, Ill.-based Walgreen Co. is 5 percent and Bentonville, Ark.based Walmart Inc. is about 4 percent, Agree said. Only 15 percent of its income is reliant on its top tenants. Other key tenants are Framingham, Mass.-based T.J. Maxx; Wawa, Penn.based convenience store chain Wawa Inc.; Oklahoma City, Ok.-based Hobby Lobby Stores Inc.; Brentwood, Tenn.-based Tractor Supply Co.; and Mooresville, N.C.-based Lowe’s. “Their tenant selection is ... very solid and diverse. They have done a nice job balancing out their portfolio with more internet-resistant tenants,” Schostak said. And while in 2010, Michigan properties represented more than 60 percent of the company’s rental revenue, today it’s only about 9 percent. Since launching the strategy, the company’s portfolio has grown exponentially. Today the company has more than 650 properties totaling more than 11.3 million square feet in almost every state (46). At the end of 2010, the portfolio stood at 81 properties in 17 states totaling just 3.8 million square feet. And even in just the last year, the portfolio increased from 436 properties in 43 states totaling 8.7 million square feet as of Dec. 31, 2017. “Their recent growth through acquisitions is particularly impressive considering it took place during a seller’s market,” Schostak said. And the market has responded favorably. The company’s stock closed at an alltime high of $64.27 per share on Jan. 29, up 125 percent from the $28.59 it closed at nearly five years prior on Jan. 31, 2014. Its market capitalization is $2.41 billion, according to Bloomberg. “We average two closings a week here,” Agree said. "And at any single time we have 50 transactions going through the pipeline from LOI (letter of intent) to the closing process.” Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB

A race ensued. They hit 90 mph as quickly as the 100 horsepower V-8s of the era would allow. That’s when things went sideways — literally. Jenkins bumped the rear quarter panel on Jack’s Ford. With the driver-side tires now in the gravel on the wrong side of the road — and no guardrails to prevent what happens next — momentum sent car and the man into the ether. “It’s unbelievable how quiet it gets when you’re spinning in the air like that,” Jack said. “It rolled to a stop up this creek bed. It stopped upright. ... I don’t have a scratch, I don’t have a bruise, I don’t have a mark. ... I had lost a brand new suede jacket ... and, uh, I lost my shoes — a brand new pair of penny of loafers I could have worn until college.” Car crashes often enough define, or even end, lives. Few find understanding in the wreckage the way Jack did: If he could push hard enough, far enough, fast enough, he couldn’t lose next time. The crash and the engine he built just two years earlier birthed a committed pursuit of technical achievement that would define not only Jack but his company, Roush Enterprises.

The Natural One The story of Roush Enterprises wasn’t born from acquired business acumen. Jack had none. He moved to Detroit in 1966, shortly after graduating from Berea College in Kentucky with a bachelor’s in mathematics. He took the first job he found in the classified ads, he said, at Ford Motor Co.’s Dearborn Assembly in the quality surveillance department. He bought his first new car then, a 1964½ Mustang, still on lots in 1966. Later, he transferred to Wayne Assembly and earned a master’s in mathematics from Eastern Michigan University in hopes of working in Ford’s research and development office. But the plant manager at Wayne Assembly — “a fella by the name of Akers” — blocked Jack’s request to leave the plant, hoping to keep him as a production manager. He quit Ford to work for Chrysler — for only 12 months. Jack said he felt isolated at Chrysler, still maintaining the relationships he had developed at Ford. On weekends, he drag-raced against his old friends, an ad hoc group of Ford employees called the “Fastbacks.” “I was working with a group during the week where I didn’t really like the company and I wasn’t all that happy with the projects I had. ... on weekends, racing against my buddies at Ford, and I said, ‘to hell with this,’” Jack said. “‘I’ll go to teach junior college.’” He taught college for three years at Monroe County Community College in the early 1970s. During that period, Jack worked alongside fellow Ford engineer Wayne Gapp to create Gapp & Roush, a National Hot Rod Association racing team. They won the 1973 NHRA Pro Stock Championship and later won three more with a customized four-door 1975 Ford Maverick nicknamed the “Tijuana Taxi.” “By the time I decided not to stay in the (auto) industry... ” Jack said, then trailed off. “The career paths laid out for me by Ford and Chrysler both, I didn’t think would be enough for me. I thought that my capability and my capacity to do interesting, challenging

things were greater than they’d give me within those organizations.” Jack founded Livonia-based Roush Industries in 1976. “The car companies had figured out by ’73 or ’74 that they need to get the price of their engineering a car to market down,” Jack said. “The Japanese had entered the market, the Germans came in, the Europeans came in with their lower cost cars. And the fact that all three, General Motors, Ford and Chrysler all had capacity capability to redesign every car line, every year. To put a new engine in every 12 months ... meant their engineering costs were too high, so the price of their cars was too high in comparison to foreign competitors. So they decided, and I saw it coming, to staff themselves 20 percent less on engineering and development capability. So when they needed a new engine, a new body, they would place enough of the work on the outside so they could cover the challenges of time and cost savings to be competitive with what’s happening with competition.” Seeing opportunity where others did not has become part of Jack’s legacy, said Evan Lyall, CEO of Roush Enterprises, recalling the story of how Jack’s NASCAR race team won the 24 Hours of Daytona race in Florida a record nine years in a row. “The rules stated the race was to be completed using one engine,” Lyall said. “But Jack looked at the rule book and they defined the engine as the engine block. So he ran that engine in qualifying as hard as he could, then knocked all the parts out of it and replaced them. No one else did that. He just sees opportunities where others don’t.”

Engineering fixation Despite no formal business education and a risk-propensity higher than any automakers’ R&D department, Jack quickly gained notoriety as an independent, in both business and racing. “Jack figured out early on that if he hired like-minded people with a similar work ethic, success would come,” Lyall said. And Jack’s work ethic is legendary. “To say he was 24-7-365 was always an understatement,” Lyall said. “People say that ... all the time, but rarely mean it. That’s not the case with Jack. The pace he used to keep was shocking. Look, if all you had to do was get up and keep up with him all day, nine out of 10 people couldn’t do it.” Jack personally hired the first 100 people at Roush, including a 19-yearold Lyall in 1981. He started as an intern in the company’s accounting department. He never left, and 43 years after the company was founded, almost all of its senior management team has been with the company their entire careers. “I’d look a person we wanted to hire in the eye, the first 100 of them, and say ... ‘Imagine a situation where you didn’t have to go to work for the car or rent payment, but you couldn’t do something purely recreational like golfing or fishing or whatever you do for fun. ... if you’d come here and work here for nothing, take the job,’” Jack said. “‘If not, don’t come. I won’t be satisfied with what you bring and you won’t be satisfied with the approval you get.’” Jack created an allegiance of highly motivated dreamers, tinkerers of all things steel, oil and wheels. And, he was their leader, an automotive Willy Wonka. “He always says he’s done what

he’s done on the backs of giants,” Lyall said. “There’s a sincerity in what he says. He is loyal to the end and takes chances on people, so we always followed along. At his pace. You didn’t mind. You went for it. It wasn’t like he was driving you to do it. It was more like he came by with the door open, ‘Here I go. Are you coming?’” Jack and his team went on to create a cadre of new engines and cars. Roush Industries designed the first Cummins diesel truck engine for Dodge; the first 90-degree engine with a front-wheel drive system, which wound up creating the Ford Taurus and Mercury Sable; the first Dodge Viper prototype and its V-10 engine; the first Saturn prototype for GM; among dozens and dozens of others. Roush Industries even designed and built a bulletproof limousine for former Iraqi leader Saddam Hussein. “When he went into Kuwait in ’91, I had NBC, CBS, the Department of Defense and every other national government agency descend like locusts to my door,” Jack said. “They said, ‘Are you sending arms? Are you

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“To say he was 24-7-365 was always an understatement. People say that ... all the time, but rarely mean it. That’s not the case with Jack. The pace he used to keep was shocking.” — Evan Lyall

in support of what he’s done?’ I said, ‘No! I’m a patriot. ... 10 years ago when he was fighting the Iranians, you wanted him to have something that was fast and bulletproof. ... Take it. Burn it on the spot.’ I never seen them again.’” Jack plays hard at the part of American patriot. He wanted to enlist in the U.S. Air Force during the Vietnam

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

“When you’re told to take this or that to Jack, you never go to his office. You go to the shop floor. He’s always in the cylinder head room with his NASCAR team, tie tucked into his shirt. ... right there with the guys building engines.” — Evan Lyall, CEO of Roush Enterprises

COURTESY ROUSH ENTERPRISES

Jack Roush is being inducted into the NASCAR Hall of Fame this year.

War, but flight training was full and he wasn’t eligible for the draft because he had a small child in 1969. “I felt like I didn’t do my part,” he told the Florida-Times Union during NASCAR’s “600 Miles of Remembrance” event in 2016. “That’s why I’m proud to do this, to recognize the loss the family had, the loss of a son and brother.” He still owns two World War II-era P-51 Mustang fighter planes, blazoned with the Old Crow nickname of venerated war pilot Bud Anderson. He only recently stopped piloting those planes after a foot injury, despite two notorious plane crashes. He

crashed his twin-engine Lockwood Aircam in 2002 in a lake in Alabama and his Hawker Beechcraft Premier 390 jet in Wisconsin in 2010. The latter crash left him with a fractured jaw and back and took his left eye. He often speaks of God on his shoulder, leading him through times of failures and crashes. The company also designed and built a 1998 Cadillac De Ville Phaeton limousine, the Popemobile, for Pope John Paul II to use as he entered Estadio Azteca for a speech in Mexico City in 1999. “He had an inner ear problem. Without something to hold on to,

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he’d just tip over,” Jack said. “So Cadillac wanted him to have a stretch limousine with armrests and handrails and things. ... The archbishop of Detroit came here to check on the car. And I entered the building and the lights were dim and they were burning incense with the thing on the rope swinging back and forth. I’m a Protestant, not a Catholic, so I don’t know what that was all about, but I’ve seen it before. So I’m looking at this car and the bishop is close to me ... and I spoke under my breath, ‘Oh my God, we’ve forgotten to put a top on the car.’ See, we didn’t have time to put a top on it with the project with the time they gave us to do it. (The archbishop) touched me on the arm and said, ‘Don’t worry, son, God won’t rain on the Pope’s car.’ And he didn’t. The tour was dry.” Cadillac contracted Roush and Eureka Coach to build the convertible limousine in just six weeks and, ultimately, Pope John Paul II didn’t even use the vehicle, presumably for safety concerns, according the Peterson Automotive Museum in Los Angeles, where the car is on display. Jack tells a story with all the folksy wisdom of a 76-year old from Southeast Ohio — the kind of dawdling yarn that conjures up a mission-style rocking chair, a carafe of sweet tea and just the right amount of exaggeration. “There’s the truth and the lie. Then there’s my truth, as I remember it,” Jack said.

COURTESY ROUSH INDUSTRIES

Roush is best-known on the track, but most days, you’ll find him on the shop floor.

But the truth of Roush Industries is, at times, stranger than fiction. Leading up to the Great Recession, and the impending bankruptcies of two of Roush’s customers, Ford and Chrysler, the company was in need of a reboot, a diversification plan to stem any more stagnant years. Jack offered up a 20 percent bonus to his executive team, including Lyall, who became CEO in 2001, to return the company’s margins to 14 percent from the dwindling 5 percent it reached ahead of the recession. That bonus hasn’t remained as high, but the program now includes a 5 percent preprofit bonus distributed to select lower-ranking members of the Roush team voted upon by management. “That electrified everything,” Jack said. Lyall said the company’s diversification effort represented Jack, now chairman, stepping away from the day-today leadership role, recognizing his high-octane modified Ford vehicles and one-off custom builds for popes and dictators was no longer enough. That effort led to several new divisions within Roush, including Roush CleanTech, a division focused on

propane-autogas vehicles, and Roush Entertainment Services, which designs and prototypes rides for Disney and Universal Studios. “He’s not afraid to reinvest in his business,” Lyall said. “It was always about how we keep this thing going, what person or technology do we need. He’s known as a racer and a technical car guy, but there’s a reason this company is here 43 years later. Jack doesn’t get enough credit for his business acumen.” Roush also does work in the defense, oil and gas, emissions and aerospace industries. The company designed and built the “FireFly”for Google’s sister company Waymo. The driverless pods were Google’s entrance into the automotive industry and although that program ran its course in 2017, Waymo is expanding its automotive efforts in Novi in the coming years. Roush will build up to 1,000 of its driverless Chrysler Pacifica vans as it expands, Jack said without naming the company specifically. Another current Roush project is designing a “space taxi” engine on a contract with NASA — one Jack said he is most proud of, even though he has literally no involvement in it. “When I heard about ... I asked how much we had invested in this because my engines always eventually blow up, and I don’t want to make the six o’clock news with this thing,” Jack said of the NASA engine. “They said several million dollars and they’ve been working on it for years. I said, ‘Damn.’ If I could have got to the plug before it got this far ... I would have unplugged this sucker.” But the project carries on and Jack still shows up for meetings, even though he’s not invited. “There are times when I’ve tried not to invite him, but that’s when he wants to come, of course,” Lyall said. “He always has been more comfortable in the bowels of things, not the boardroom.” And that’s where you can find Jack most days — on the shop floor of one of his 50 buildings, most of them in and around Livonia. He shows up to work almost every day, except on race weekends when he’s traveling around the country with his race team. Jack was inducted into the NASCAR Hall of Fame last week alongside Roger Penske. “When you’re told to take this or that to Jack, you never go to his office,” Lyall said. “You go to the shop floor. He’s always in the cylinder head room with his NASCAR team, tie tucked into his shirt. ... right there with the guys building engines. That’s what the people here always loved. Jack’s always right there with them, arm in arm.” Roush Industries generated revenue of nearly $500 million in 2017 and is approaching nearly 6,000 employees. Meanwhile, he’s a race team legend. He’s known for micromanaging his team, Roush Fenway Racing, to a fault. His daughter and granddaughter both race professionally. The team has won 325 NASCAR races and eight championships since debuting in 1988. But it’s his business in Livonia that he’d like be his real legacy. “I’d like to be remembered as an ambitious person who wanted to leave the world a better place than the one he was thrust into and creating careers and livelihoods for thousands of people that would not have had the opportunity to do as interesting of work in their careers.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh

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C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

GREEN FROM PAGE 3

And the streak will continue as long as his health allows. “I want to cover it as long as I possibly can. It’s fun writing. I have not done any of the nocturnal stuff except go out to eat,” said Green, who also covered the Detroit Lions’ last championship, in 1957, for the Associated Press. He was in Atlanta last week on his own, but limits himself to necessary events while skipping out on the nightlife. Even with a limited schedule, the Super Bowl’s evolution into a sprawling, behemoth spectacle with nearly 6,000 journalists covering it, has hampered his ability to cover the game like he used to. “The league is making it more difficult for the few of us who are really old and getting decrepit,” he said. “The media centers are separate from the hotel.” He also finds it difficult to get fresh angles because the NFL limits access to players while credentialing more and more media. The days of casual moments by the pool with Joe Namath are a relic, like single-bar face-masks, the Wing-T offense, and the blue Olivetti typewriter Green bought in Hong Kong in 1955 and used for years. “The access has changed. There are more and more journalists. Television came in. At first it was just newspapers, then the internet and now bloggers. It’s just a mob scene. But I haven’t been hit by a TV camera since Tuesday,” he said. Super Bowl III remains Green’s favorite game, mainly because of that afternoon with Namath, who had been fending off interview requests. Green last week wrote a reminisce for The News about that day by the pool, and recounted it for Crain’s. “I saw him through the window of the Galt Ocean Mile Hotel ballroom. He was in shorts going to the pool. I saw him shoo away a guy from the Detroit Free Press, of which I was glad. He sat poolside talking to some girls,” Green said. A few minutes later, Dayton Daily News sportswriter Si Burick rounded up Green and a small handful of reporters because Namath had agreed to an impromptu poolside chat. The rest is history thanks to Iooss, a wunderkind photographer hired by Sports Illustrated in 1962 at age 19 and one of the profession’s iconic names. On that sunny day in Fort Lauderdale, it was just Namath and reporters who had never covered him. His Jets back then played in the newer American Football League, a rival of the established National Football League. The leagues merged a year later. “It was the NFL writers who had never seen Namath, had never covered him or been exposed to his characteristics, getting their first shot at him,” said Green, who was The News’ beat writer for the Detroit Lions at that point. “It was a whole bunch of curious guys.” With him in the photo are Burick, wearing a newspaper over his head to shield the Florida sunshine, Chuck Heaton from the Cleveland Plain Dealer, Ray Sons of the Chicago Sun Times, and a young Brent Musburger, a sportswriter for the now-defunct Chicago American newspaper. Namath chatted about being fined $50 for skipping a mandatory photo session and about his confidence in the Jets, Green said. It was the sort of casual, intimate conversation between star quarterback and reporters that is unheard of today, when the

“The access has changed. There are more and more journalists. Television came in. At first it was just newspapers, then the internet and now bloggers. It’s just a mob scene. But I haven’t been hit by a TV camera since Tuesday.” Jerry Green BLOOMBERG

Tom Bradys of the world are isolated from the media horde, kept behind barricades and coached by press handlers into sterile, anodyne cliches. “It was an exclusive, which was difficult. I’m very proud of it,” Green said of that afternoon in Florida. Today, he lives at The Rivers Grosse Pointe, a senior living community in Grosse Pointe Woods. His wife, Nancy Hamilton Green, died of breast cancer in June 2002, and in 2010 he sold a home in Palm Desert, a city in California’s Coachella Valley where they had split time for many years. “I’ve gone home. I wanted to go back and be with my family,” he said. That family includes The Detroit News, where he spent 41 years before semi-retirement in 2004. He was the newspaper’s Lions beat writer from 1965-72 and then settled into the columnist role. Green is pained by newsroom job losses that have gutted not only The News but also newspapers nationally. “It’s a business that is vanishing, and that to me is depressing. I regard The Detroit News like family,” he said. Longtime colleague and fellow Detroit News sports columnist Lynn Henning, himself a recent retiree at age 66, praised Green’s six decades of coverage. “Jerry fundamentally is a football guy. He covered the Lions after leaving the AP for the News, and he knows football,” Henning said. “He also knows the people — all of them, from Vince Lombardi on. I remember a column he did from one Super Bowl, when Al Davis and the Raiders were playing, and he talked about how Al Davis ‘spreads his fingers when he shakes hands with you. It’s because he has a bony hand ...’ Only Jerry could have written that.” Born on Manhattan in 1928, Green attended the elite Hotchkiss School in

Connecticut, a prep factory whose alumni roll includes former Lions owner William Clay Ford Sr., Time magazine co-founder Henry Luce, and members of the Bush, Vanderbilt, Edison, Lehman and Pillsbury families. He earned degrees from Brown and Boston universities. He worked in 1952 as a $29-a-week copyboy at the fabled New York Journal-American, entering the Navy the following year as an officer on the cruiser USS Northampton. Later, Lt. j.g. Green did media relations for the Navy in Asia, which further prepared him for journalism. Why newspapers? “My standard response is I could not hit the curve ball. I believe everybody out of my generation who wrote sports started out as kids wanting to be a professional athlete. I found out rather early in life I couldn’t play, so I went to the next best thing, sports journalism,” he said. “I totally enjoyed most of it. I was very fortunate in assignments.” He ended up in Detroit because he couldn’t land a gig in Gotham. “In 1956, when I went into the reserves, I looked for a job in New York — there were seven newspapers there — and I couldn’t get anything close to what I wanted. In deep frustration, after walking around New York City, I stormed into the office of the AP and asked to see the general sports editor, Ted Smits.” Smits was from Jackson and a Michigan State grad. He knew of an AP opening in Ann Arbor. A few weeks later, Green found himself covering coach Bennie Oosterbaan’s University of Michigan football team. Its roster included iconic names such as Terry Barr and Ron Kramer, who would both later play for the Lions, and Tom Maentz, who ended up on the cover of Sports Illustrated.

“Those guys became my friends. I wasn’t much older than they were,” Green said. “I got a tremendous break starting out with Michigan football. It was like a rookie reporter getting to cover the New York Yankees.” After seven years with the AP, which had named him Michigan’s sports editor in 1961, Green took a new job when The Detroit News sought him out in 1963, he said. He was right back in Ann Arbor covering Michigan. Within two years, however, he started covering the Lions. And as part of that gig, his job included covering the new championship game between the top teams in the National Football League and the upstart rival American Football League. That game by 1969 was known as the Super Bowl. Green said he’s been asked over the years if he is holding on so that he can cover the Lions in the Super Bowl. He says no, that he has no rooting interest. “It’s not a dream or even a fantasy. When I worked for AP, I was taught you don’t root, that’s what I learned in the ’50s,” he said. Green also is pragmatic about seeing the Lions in the Super Bowl one day. They’re one of just four NFL teams to have never appeared in the game. “I don’t think I’ll last that long,” he said. His career is one filled with honors, and highlights include: The National Sportscasters and Sportswriters Association named him the state’s top sportswriter 10 times. The Professional Football Writers of America’s Dick McCann Memorial Award, bestowed on Green in 2005, means he’s in the “writer’s wing” of the Pro Football Hall of Fame. The Michigan Sports Hall of Fame enshrined him in 2003 and the Michigan Jewish Sports Foun-

dation Hall of Fame followed a year later. The other sportswriter who has made it to every Super Bowl is Jerry Izenberg, who has been with the Newark Star Ledger in New Jersey since 1951. “He and I talk several times during the year and often during Super Bowl week,” Green said, adding that they had dinner Wednesday night. The technology has changed radically since Green and Izenberg filed stories after Super Bowl I from the Los Angeles Memorial Coliseum pressbox in January 1967. “I wrote on a typewriter, I handed what I wrote to a Western Union teletype operator and he or she transmitted it to The Detroit News over the wire,” Green said. Eventually, there were portable telex machines and primitive computers that could be hauled from airport to stadium and back again. Laptops replaced those. Green said he went through five Dell laptops over the years until the last bedeviled him one too many times, he said. “It quit on me at the Super Bowl,” Green said. That’s a cardinal sin with Jerry Green, who has never quit on the Super Bowl. He now uses a Lenovo. He’s planning on being at Super Bowl LIV in Miami next year and uses an exercise routine to motivate himself by using the game’s number. “I have a habit, a little bit of a particular behavior. I still like to exercise a lot. Some exercises I count to 60, mumbling to myself. I get to 53, and I shriek it out. Then I go back to mumbling. That’s how I motivate,” he said. “When I finish on Sunday, I will put 54 into my mindset.” Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19

C R A I N ’ S D E T R O I T B U S I N E S S // F E B R U A R Y 4 , 2 0 1 9

THE WEEK ON THE WEB

RUMBLINGS

Things return to normal as polar vortex exits area

Gilbert hires ex-Speaker Leonard as strategist

JANUARY 25-31 | For more, visit crainsdetroit.com

y Friday, life was starting to get back to normal in metro Detroit and the Midwest as the record-breaking polar vortex that hit hard loosened its grip. Most schools and businesses that had closed due to the cold reopened Friday. There are some casualties from which it will take some time to recover. Oakland University reported its Kresge Library was closed from flooding caused by a water main break due to the cold. There were water main breaks reported in Detroit and Lincoln Park, too. Weather forecasters are warning of flooding and more water main and other pipe breaks and an influx of potholes during a rapid thaw as temperatures shift as much as 70 degrees with highs expected to approach 50 degrees by Monday. Automakers and nearly 80 other businesses shut down Thursday following an urgent plea from Consumers Energy Co. to cut back on natural gas use after fire at a Macomb County pumping station threatened supplies during the deep freeze. It was unclear how many supplier plants also were impacted in the region on Thursday. Consumers Energy CEO Patti Poppe said as of Thursday afternoon that crews had repaired part of the station and ample gas supplies are now available. Gov. Gretchen Whitmer on Thursday ordered a statewide review of the state’s energy infrastructure as the Consumers Energy fire sparked fears of a natural gas shortage during a bitter freeze. General Motors Co. said it expected all 13 of its Michigan manufacturing facilities to return to normal operations Friday after they were idled due to the Consumers plea. Fiat Chrysler and Ford Motor Co. also were prepared to resume normal operations Friday.

BUSINESS NEWS J Electronics giant Foxconn reversed course and announced Wednesday that the massive Wisconsin operation that was supposed to bring a bounty of blue-collar manufacturing jobs back to the Midwest — and was offered billions of dollars in incentives from the state — will instead be devoted mostly to research and development. Michigan was one of seven states that competed for the Foxconn plant that went to Wisconsin. J High-tech auto electronics supplier Aptiv said it expects 2019 operating income to be flat to slightly increased, despite a forecast of slower new-vehicle production. Reflecting the spinoff of Aptiv’s former powertrain segment to Delphi Technologies in December 2017, net income fell 4 percent for the fourth quarter, to $247 million, and dropped 21 percent for the year, to about $1.1 billion. Income from continuing operations was $1.1 billion for the year, up 4 percent. Aptiv said revenue for the quarter increased 6 percent to $3.6 billion. Aptiv said revenue for the quarter increased 6 percent to $3.6 billion.

ANNALISE FRANK/CRAIN’S DETROIT BUSINESS

The deep freeze that has plagued Detroit and the Midwest loosened its grip starting Friday afternoon.

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

Number of years that Ward’s Automotive Reports covered the auto industry. The weekly newsletter closed last week, according to the Detroit Free Press.

250

Number of Michigan communities that have banned marijuana businesses

$150,000

Boost that Grow Detroit’s Young Talent careers program received from the Marjorie Fisher Fund. The program seeks summer jobs for 8,000 Detroit young people.

J After the original Sweet Lorraine’s Cafe & Bar in Southfield closed a year and a half ago, its building has been purchased by an investor. Abro Plaza Southfield LLC bought the distinctively decorated building at 29101 Greenfield Road north of 12 Mile Road and a next-door shopping center with a Dollar Tree, hair salon and Detroit Kid City party service as tenants, said Darryl Goodwin, principal at West Bloomfield Township-based Armada Real Estate Services and listing agent representing the previous owner. J Utility services company Tribus Services is planning to lay off 208 people in Waterford Township and Lansing. The company, which provides end-to-end smart metering and utility services for gas, water and electric utilities, will make the cuts Feb. 15 through June 30, according to a filing with the state. The layoffs are due to the expiration of a Consumers Energy Co. contract after five years, said Mary Felder, director of human resources for Tribus.

OTHER NEWS J Lt. Gov. Garlin Gilchrist II is selling a fire-damaged Detroit apartment building at a loss after spending about $226,000 to try to revive it, The Associ-

ated Press reported. He got the vacant building from the Detroit Land Bank Authority for just $13,500, benefiting from a 50 percent discount because he was a city employee in 2016. The property at 253 Marston St. in the city’s North End neighborhood became an issue in the fall campaign when neighbors complained about the eyesore. Gilchrist at the time said he’d made progress but acknowledged that it wasn’t “in the state that I want it to be in.” He said he was struggling to get loans. J The Detroit-Windsor Tunnel is returning to full operations for a limited time as the nearly two-yearlong project inches closer to completion. Detroit-Windsor Tunnel LLC on Thursday announced the substantial completion of the $21.6 million project, which entered its third and final phase in October 2017. The U.S.-Canada border crossing — a popular commuter route — will return to normal operations Feb. 3-March 2, with closures over the next few months to finish ancillary work. J Detroit mortgage and real estate mogul Dan Gilbert and Michigan’s new lieutenant governor will be among featured speakers at the Detroit Regional Chamber’s Detroit Policy Conference next month, the chamber announced Wednesday. The annual conference hosted by the Detroit Regional Chamber will take place 7:30 a.m.-4 p.m. Feb. 28 at MotorCity Casino Hotel’s Sound Board. J Gov. Gretchen Whitmer will deliver her first State of the State address a week later than planned to avoid having it on the same night as President Donald Trump’s State of the Union speech. The Democratic governor’s speech is now scheduled for 7 p.m. Feb. 12 during a joint session of the Republican-led Legislature at the Michigan Capitol building. Her office announced the new date Tuesday. J Detroit Medical Center’s two adult downtown hospitals have been notified by federal health regulators that they are not in compliance with physical environment regulations and they stand to lose participation in Medicare by April 15. The hospital has the opportunity to submit a plan to correct the problems, but losing Medicare funding would potentially cost DMC hundreds of millions of dollars in revenue and call into question care for downtown patients.

ormer House Speaker Tom Leonard is getting into the business of legislative strategy — and his first major client is Quicken Loans Inc. and its billionaire founder Dan Gilbert. Leonard, a Republican from DeWitt who lost a campaign for attorney general last year, has started a public policy consulting firm called MiStrategies LLC. Quicken Loans has hired Leonard to help build the legislative coalition needed to fulfill Gilbert’s goal of overhauling Michigan’s no-fault auto insurance law — something Leonard couldn’t get done the past two years as one of the Legislature’s most powerful lawmakers. “(Gilbert) and I have the same passion in terms of tackling very big issues to move our state forward,” Leonard told Crain’s. Gilbert has said he’ll pursue a ballot campaign in 2020 if the Legislature doesn’t take action this year to rein in Michigan’s highest-in-the-nation auto insurance rates. Leonard said he’ll also be working on legislation for Quicken Loans that addresses gaps in the state’s workforce, education and infrastructure. “I will be helping them strategize, helping them collaborate, but also building coalitions,” Leonard said.

“It’s very difficult getting anything done alone.” Leonard, 37, left office at the end of last year after serving the constitutional limit of three two-year terms and losing the attorney general race to Democrat Dana Nessel. “Having worked closely with Tom Leonard as Speaker, we came to know him as a skilled strategist and a person of integrity and conviction,” Jared Fleisher, vice president of government relations at Quicken Loans, said in a statement. “For those reasons, Tom is respected on both sides of the aisle and has a record of significant bipartisan achievements important to the State of Michigan. We are truly excited to work with Tom to hone our strategy, and redouble our efforts, as we seek to help bring about positive changes in auto insurance, talent development, and on issues like transit and mobility that are so important to our economic future.” During the December lame-duck session, Leonard said he had refused to discuss job opportunities with anyone while he was still running the House of Representatives. MiStrategies has one other client, but Leonard said he can’t reveal it at this time. The firm’s specialties also will include criminal justice reform, health care and mental health.

FDETROIT FREE PRESS/CHEMICAL BANK MARATHON

Chemical Bank will continue as the sponsor of October’s Detroit Free Press marathon, likely under that brand and not under the TCF Bank brand.

Chemical Bank to keep 2019 marathon sponsorship C

hemical Bank will continue as the sponsor of October’s Detroit Free Press marathon, likely under that brand and not under the TCF Bank brand. It was announced Monday that Chemical Financial Corp. was buying Minneapolis-based TCF Financial Corp. and, while retaining its Detroit headquarters, would operate its bank branches as TCF. Talmer Bank replaced Flagstar Bank as the marathon’s sponsor in 2011, and when it was bought by Chemical Bank in 2016, Chemical became the sponsor. “Chemical has moved its headquarters to Detroit and is building a

20-story new office. The only question on the marathon is will the start and finish line be moved a couple of blocks to be in front of the new headquarters?” said David Provost, Chemical Financial Corp.’s president and CEO. “This year it will probably run under Chemical as the merger will not be finalized until the end of the third quarter or early fourth quarter. After this year I see it running under the TCF brand,” Provost said. “What do I like about the event? It is a symbol of our commitment to Detroit. When every other bank in the country was running away from Detroit, we stepped up.”

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