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CRAIN’S DETROIT BUSINESS Contact: (313) 446-6032 Print Advertisements PRINT Full Page > Junior Page > Half Page > 1/3-Page > 1/4-Page > 1/6-Page > 1/8-Page > OTHER VOICES Joe Neussendorfer Joe Neussendorfer is an affiliate member of the American Society of Civil Engineers, a member of the Engineering Society of Detroit and a member of the American Bar Association’s forum on construction law. 9 CRAIN’S DETROIT BUSINESS // May 4,2015 nated through state agencies that have experts on various subjects. When I asked if there are any leg- islative structures or state statutes in place regarding P3s, he said: “Our current efforts have not required any sort of legislative action. We may reach a point where we will need to work with our partners in the Legislature to expand opportu- nities for the state’s residents to benefit from P3 initiatives.” MDOT Director Kirk Steudle told me: “We actually have quite a bit of P3 work going on currently. We also have some older projects that are close to a P3. We have a partnership with Meijer for carpool lots; we did two design, build, finance projects, which helped us really move into other innovative contracting options. … “One is currently on the street for a 15-year contract for freeway lighting in Southeast Michigan, all 14,000 lights for design, build, finance, main- tain and operate. There also is the De- troit Intermodal Freight Terminal, where we have over half the funds provided by the railroads and the rest by the state.” Clear on concept The Council of the Great Lakes Region has an exciting P3 initiative underway. It recently announced it will perform an in-depth study of policies and laws governing P3s in other regions of the United States and Canada to identify best practices for the private sector to design, build, finance, operate and maintain public infrastructure. CEO Mark Fisher said that the hope is “to create a blueprint for the region” to follow. I believe the public and the Legislature should get involved with this concept. Perhaps there is a forward-thinking state senator or representative who would like to get the ball rolling with legislation that would create a P3 authority to look at alternatives to financing not just transportation infrastruc- ture but all state capital projects. In addition, Snyder should con- sider sponsoring a statewide P3 conference with Business Leaders for Michigan and other private-sec- tor stakeholders to discuss ways that the private sector can assist Michigan and its limited resources in addressing future funding needs. As the insightful Crain’s Detroit Businesseditorial on Feb. 23 stated: “The good news: The spotlight on the P3 model may lead to its use in other projects.” T he National Governors Associa- tion Center for Best Practices, in partnership with the National Con- ference of State Legislatures and the Center for Excellence in Project Fi- nance at the American Association of State Highways and Transporta- tion, recently held a workshop to as- sist state teams exploring how pub- lic-private partnerships, often called P3s, might be used to improve trans- portation infrastructure at a time when taxes alone will not provide all of the money needed for such a daunting task ahead. What is a P3? A definition is a single private-sector or a group of private- sector partners who provide upfront financing for a capital project, and de- signs and builds the project based on criteria from a public entity, such as a state highway department, then op- erates and maintains the project for a specified time in exchange for a com- bination of user fees or other govern- ment transfer payments. There have been many discus- sions and some movement regard- ing the use of P3s in Michigan, pri- marily in the governor’s office and the Michigan Department of Trans- portation. But so far the average Michigan citizen does not have background information about the concept. This needs to change. There have to be discussions by all legislative and taxpayer stake- holders so there is an understanding that P3s offer a great alternative to just raising taxes. There are not enough tax dollars to go around. Not just transportation infrastructure, but all state capital projects, will have to be a combination of tax dol- lars and private resources. Everyone has to contribute to the effort. Moving forward At least two states, Arizona and Pennsylvania, are moving forward with major initiatives. The Arizona Department of Transportation has established an Office of P3 Initiatives, using best practices and lessons from other states as the basis of building a strong P3 program. The Pennsylva- nia Department of Public Trans- portation has established an Office of Public-Private Partnerships. In Michigan, Gov. Rick Snyder has appointed Joseph Pavona as a special adviser for P3s. In an email to me, Pavona wrote, “Michigan has a statewide P3 vision that fosters economic development by addressing our state’s infrastruc- ture deficit and leveraging public and private assets.” He went on to write that P3 ef- forts are coordinated through the executive office and, in turn, coordi- Public-private partnerships a needed path to project funding YOUR AD HERE it was then to do one-of-a-kind communities.” Johnson has accomplished that, not only in the Caribbean, but also in Southeast Michigan and across the rest of the state. There is the $400 million T u r t l e L a k e development in Bloomfield Township featuring 112 estate home sites on 256 acres off Square Lake Road west of Tele- graph Road. Victor International’s Heron communities — H e r o n B a y , H e r o n P o i n t and H e r o n W o o d s — in Bloomfield Township sit on about 150 acres and have about 100 homes. Heron Bay was the first res- idential community where individ- ual lots — not homes — sold for more than $1 million. The $50 million C o p p e r w o o d community in South Lyon Town- ship has 110 units sitting on about 100 acres, while the $100 million P a r k s a t S t o n e w o o d community in Clarkston has 217 homes out of 300 units in the master plan sitting on about 100 acres. And what the company bills as what was then the largest land reclamation project in American history was its $1 billion develop- ment of the V i l l a g e a t B a y H a r b o r on the Lake Michigan shoreline, consisting of 1,200 acres that was once the site of a sprawling ce- ment plant and mining opera- tions. (See related story, Page 4.) But in 1985, it was another de- velopment of his that was attract- ing his attention and that of Crain’s Detroit Business: The 125,000-square-foot Victor Center at 27400 Northwestern Highway east of Telegraph, construction on which was completed that year. Named after Johnson’s father, Victor Center is owned by P l a n t e M o r a n C r e s a L L C , the real estate arm of Southfield-based P l a n t e M o r a n P L L C . Victor International also assem- bled 11 different parcels of land to- taling 95 acres for the V i c t o r C o r p o - r a t e P a r k at Seven Mile Road and I-275. “Victor Corporate Park pio- neered the I-275 corridor in the 1980s,” said Johnson, a M i c h i g a n S t a t e U n i v e r s i t y graduate. “I used to fly potential tenants up in a hel- icopter, sit at 144 feet (12 stories) and say, ‘This is your view from the top of your building.’ ” But still he ended up on Virgin Gorda not only because of how it keeps far away from the harsh Michigan winters, but also because it was part of a life-long dream. “My long-term goal was to do a development in the Caribbean, and I spent 10 years looking for the ideal location,” he said. “I bought it to make it the Nantucket of the west.” Dominic J. Moceri, who has known Johnson for 25 years and is partner of Auburn Hills-based resi- dential developer M o c e r i C o s ., called Johnson a “highly imaginative de- veloper who puts exceptional curb appeal in everything he does.” “He is forward-thinking with deed restrictions he places on his developments, which grant protec- tion to those that invest in his com- munities,” said Moceri, whose company has developed 55,000 res- idential units in southeast Michi- gan, including the $137 million lux- ury P i n n a c l e subdivision in Oakland Township. “Someone that purchases a home there, or a builder who buys lots, they are going to be protected on what goes on, saying that next door to them will be of the same or greater quality.” “We don’t allow one-upman- ship,” said Johnson, who employs about 200 people worldwide. “We don’t want people showing off how rich they are.” Moceri, who also called John- son “gregarious” and “genuine,” said the spinal cord injury “only sped him up, not slowed him down.” “When you have bolts go in your head and you’re paralyzed from the shoulders down,” it changes your perspective on life, Johnson said. “I do yoga. I ride horses for freedom of movement. I have residual dam- age on my left side, but every day is the best day of my life. “And I work every day because I love what I do.” Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB CRAIN’S DETROIT BUSINESS // May 4,2015 . From Previous Page Wayne County hopes to save $10 million per year by overhauling its procurement process. To do that, the W a y n e C o u n t y C o m m i s s i o n would contract with a vendor to create a platform that staff would use to find the suppliers with which the county negotiated the best prices, terms and conditions, said Lloyd Jackson, director of com- munications for County Executive Warren Evans. Jackson said the system will con- trol what the administration refers to as “rogue spend” — which is spending with suppliers whose rates have not been negotiated. It would take effect within 90 days of the commission awarding the contract. Hugo De Campos, an assistant professor of supply chain manage- ment at the W a y n e S t a t e U n i v e r s i t y School of Business who spent a decade in supply chain management at G e n e r a l M o t o r s C o . , said Wayne County is going to a model the pri- vate sector has been adopting for years. “We (at GM) achieved over 20 percent cost improvements by globalizing or ‘commonizing’ the horns” in GM vehicles in different buying their own horns, so we picked the best supplier globally. The overhaul is part of Evans’ plan to address the county’s struc- tural deficit, which has averaged $52 million in the past four years. Last week, he also proposed elimi- nating health care benefits for fu- ture retirees; a 5 percent pay cut for all employees except for police offi- cers, prosecutors and nurses; and a change in health care options for re- tirees who retired before 2007. Wayne County’s pension system is just 45 percent funded and needs $910 million to become fully fund- ed. If the county does nothing, in five years the accumulated deficit is ex- pected to balloon to $171 million and the county could run out of cash by August 2016, according to Evans. With full implementation of Evans’ plan, he said, surpluses are expected at $78.5 million in 2015 (due to a transfer from the county’s Delinquent Tax Revolving Fund); $17.1 million in 2016; $5.5 million in 2017; $4.5 million in 2018; and $9.6 million in 2019. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB Wayne works to control ‘rogue spend,’ save $10M YOUR AD HERE 15 CRAIN’S DETROIT BUSINESS // May 4,2015 PEOPLE ON THE MOVE Send news items and photos to [email protected] CALENDAR ARCHITECTURE J e r r y A t t i a to principal, R o s s e t t i A s - s o c i a t e s I n c . , Detroit, from director of marketing development and project management, SORG Architects, Washington, D.C. Also, K i r k P h i l l i p s to architectural design lead, from director of hospi- tality design, Hamilton Ander- son Associates Inc., Detroit, and M i k e S h e a to senior project manager, from senior project manager, Hamil- ton Anderson Associates Inc. CONSULTING D a v i d K a u p p i l a to principal, F u l c r u m E d g e I n c . , Bloomfield Hills, from glob- Crain’s2015 M&A Awards Join Crain’s Detroit Business, in partnership with the A s s o c i a - t i o n f o r C o r p o r a t e G r o w t h - D e t r o i t C h a p t e r , to meet the M & A A w a r d s winners and finalists and hear the stories behind the top trans- actions of 2014 from the deal- makers themselves. The event takes place 5-9 p.m. M a y 1 2 at the T r o y M a r r i o t t . Tickets are $100 in advance, or $95 for current ACG members. Groups of 10 or more are $95 each. Prereg- istration closes M a y 1 1 at 9 a.m. If available, walk-in registra- tion will be $120 per person. F o r i n f o r m a t i o n , contact Kacey Anderson, (313) 446-0300, [email protected]. SPOTLIGHT GEORGE PHIFER: Director, Huron-Clinton Metroparks G e o r g e P h i f e r has been named director of the H u r o n - C l i n t o n M e t r o p a r k s . As director, he serves as CEO and is responsible for day-to-day operations of the H u r o n - C l i n - t o n M e t r o p o l i - t a n A u t h o r i t y . Phifer had been deputy director and COO of the Huron-Clinton Metroparks. In 2010, Phifer was appointed executive secretary to the Board of Commissioners, serving as a staff officer of the agency while maintaining his responsibilities with the M e t r o p a r k s P o l i c e D e - p a r t m e n t as police chief, a posi- tion he has held since 2008. Phifer, 51, worked for nearly 20 years at the P o n t i a c P o l i c e D e - p a r t m e n t . He retired from the department as a captain in 2004. He earned his master’s degree from E a s t e r n M i c h i g a n U n i v e r s i t y , a bachelor of business leadership from B a k e r C o l l e g e and an associ- ate of applied science degree in criminal justice from O a k l a n d C o m m u n i t y C o l l e g e . He is also a graduate of EMU’sPolice School of Staff and Command. THURSDAY P o p u l a t i o n H e a l t h c a r e M a n a g e - m e n t : S t r a t e g i e s T h a t W o r k . 7:30- 9:30 a.m. Modern Healthcare. Speakers include J o e M u l l a n y , CEO, D e t r o i t M e d i c a l C e n t e r ; B r u c e M u m a , chief medical officer, H e n r y F o r d P h y s i c i a n N e t w o r k ; and T h o m a s S i m - m e r , senior vice president and chief medical officer, B l u e C r o s s B l u e S h i e l d o f M i c h i g a n . M a u r e e n M c K i n n e y , editorial programs man- ager, Modern Healthcare,moder- ates. MGM Grand, Detroit. $95. Contact: Jenna Trautman, (312) 649-5238; email: jtrautman@ modernhealthcare.com; website: modernhealthcare.com/detroit. C o l l a b o r a t i o n f o r P o w e r a n d P r o f i t B r e a k f a s t a n d S y m p o s i u m I I . 8:30-11 a.m. The Black Advantage III Busi- ness Conference Biz To Biz Match. Scheduled panelists: E r i c C . W i l l i a m s , program director, Entrepreneurship and Business Law at W a y n e S t a t e U n i v e r s i t y ; B r i a n E l l i s o n , principal of I n t e r s e c t i o n C o n s u l t i n g G r o u p L L C .; the R e v . E l r e t a D o d d s , author and pub- lisher; P a u l K . R o z i e r , “serial entrepre- neur,” re-engineering strategist, and business educator. Greater Grace Temple, Detroit. Tickets: $25, collab- orationforpower.eventbrite.com. FRIDAY C E O B u s i n e s s R o u n d t a b l e L u n c h e o n . Noon-2 p.m. Michigan Association for Female Entrepreneurs. A discus- sion with C a m i l l e J a y n e , president of Phifer People on the Move announcements are limited to management positions.Email c dbdep artment s@cr ain. c om . Include person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former city where the person worked. Photos are welcome; we cannot guarantee their use. Calendar guidelines.Visit cr ains de tr oit . c om and click “Events” near the top of the home page. Then, click “Submit Your Events” from the drop-down menu. Fill out the submission form, then click “Submit event” at the bottom of the page. More Calendar items can be found at cr ains de tr oit . c om/ e v ent s . T h e J a y n e G r o u p , on personal and corporate branding and marketing strategies. Bastone Brewery, Royal Oak. $35. Contact: Tonya McNeal- Weary, (866) 490-6233, email: [email protected]. UPCOMING EVENTS L e a r n A b o u t H i g h - P r o f i l e R e d e v e l o p - m e n t s . 11:30 a.m.-2 p.m. M a y 1 2 . Com- mercial Real Estate Women, Detroit. Program features a panel discussion about the Detroit Packard Plant, Michigan State Fairgrounds, Village of Bloomfield and M-1 Rail. Gem The- atre, Detroit. $45 for CREW members and $65 for nonmembers. Lunch is included; parking will be available in the GEM’s garage. T h e 2 0 1 5 T i g e r s . 11:30 a.m.-1:35 p.m. M a y 1 3 . Detroit Economic Club. Speakers are D a v i d D o m b r o w s k i , presi- dent, CEO and general manager; and B r a d A u s m u s , manager, D e t r o i t T i g e r s . MotorCity Casino Hotel, Detroit. $45 DEC members, $55 guests of mem- bers, $75 nonmembers. Ticket sales end at noon M a y 1 2 . Contact: (313) 963-8547; email: [email protected]; website: econclub.org. A P A C C 1 4 t h A n n u a l D i n n e r C e l e b r a - t i o n . 5:15 p.m.-midnight M a y 1 6 . Asian Pacific American Chamber of Com- merce. Keynote speaker is B i l l I m a d a , chairman and chief collaborative of- ficer, I W G r o u p . MGM Grand Detroit. Tickets $200 members, dinner only ($350/couple); $350, dinner and VIP reception ($650/couple); $250 dinner only for nonmembers ($400/ couple); or $400 dinner and recep- tion for nonmembers ($700/couple). Registration ends M a y 8 . Contact: Erin Mclin, (248) 430-5855; email: [email protected]; website: apacc.net. al manufacturing engineering direc- tor, Thermal Systems Division, Del- phi Automotive plc, Troy. FINANCE J i m J a h n k e to director, B l u e R i v e r F i n a n c i a l G r o u p I n c . , Bloomfield Hills, from managing director, Palisade Capital Manage- ment LLC, Fort Lee, N.J. V i n c e C a l l a g h a n to manager, B l u e R i v e r F i n a n c i a l G r o u p I n c . , Bloomfield Hills, from CEO, Business Problem Solvers, Berkley. Also, S c o t t S h a r p to manager, acquisition support group, from CEO, S. Lawrence & Co. LLC, Flint; and G e o r g e P e t r u l i s to managing director, acquisition support group, from managing director, McLean Group LLC, Chicago. MANUFACTURING P a u l D i L i s i o to senior vice president of automotive and industrial original equipment sales, D a y c o L L C , Troy, from director of sales and marketing, auto- motive division, SKF USA, Northville. Attia Jahnke YOUR AD HERE out its challenges. That’s because the uptick in jobs and income isn’t uni- form across the county, Jacobs said. “Clearly, there is a considerable difference, economically, between the northern end and the southern end of the county,” Jacobs said. “While younger families are mov- ing into the southern communities, those incomes tend to be lower than those previously living there, and their needs are different. How do we integrate the interests of both groups?” Communities such as East- pointe, Roseville and St. Clair Shores haven’t seen as quick of a re- covery as communities farther north, Jacobs said. Household in- come in Ma- comb County has dropped sharply since be- fore the Great Recession, sur- passed only by Wayne County. Median house- hold income dropped to $52,978 in 2013 from $71,979 in 1999, a decrease of 26.2 percent, according to the U.S. Census. During the same period, household income dropped 23.9 percent in Oakland County and 28.5 percent in Wayne County. County Executive Hackel doesn’t see the gap as a problem. “A lot of our growth in population in the southern communities is from the city of Detroit,” he said. “They are backfilling our residents as they migrate north, and there’s nothing wrong with that. “These residents are finding af- fordable homes, and we’re happy to provide opportunities for everyone at every economic level. In fact, it’s critical we supply it because all of our futures are linked.” Another source of population growth is from immigrants. Those from Iraq and from India account for the largest increase, according to data from the U . S . D e p a r t m e n t o f H o m e l a n d S e c u r i t y . Between 2003 and 2011, 18,260 Iraqis and 16,372 Indians came to Macomb County. That immigrant population could become a boon for the county, Ja- cobs said. “Most of the new Americans are coming with skills which will be important for the future growth of the county — in particular, entre- preneurial skills,” he said. “Most of the (immigrant population) are part of families with young chil- dren, so there is a future genera- tion growing up in Macomb County.” Dustin Walsh: (313) 446-6042 Twitter: @dustinpwalsh 13 CRAIN’S DETROIT BUSINESS // May 4,2015 y y * SPECIAL REPORT: MACOMB COUNTY From Previous Page David Girodat: Fifth Third expects to add market share. [PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS] YOUR AD HERE 14 CRAIN’S DETROIT BUSINESS // May 4,2015 At the state-of-the-art Advanced Technology Education Center in Warren, we offer degrees in high-demand fields such as mechanical engineering, global supply chain management, engineering technology and computer science. A nationally recognized research university, WSU offers 370 academic programs through 13 schools and colleges to nearly 28,000 students at our main campus in Detroit and six extension centers, including three in Macomb County. Wayne State provides students with the education they need, and deserve, to excel. Ready to become a Warrior? Visit apply.wayne.edu AIM HIGHER Our Advanced Technology Education Center is new. Our commitment to higher education in Macomb is not. SPECIAL REPORT: MACOMB COUNTY Kosch Hospitality takes over operation of Blossom Heath Inn By Sherri Welch Rochester-basedK o s c h H o s p i t a l i - t y L L C has assumed management of B l o s s o m H e a t h I n n , a city-owned banquet and events center in St. Clair Shores, under a new 10-year contract. The revamped venue is part of the company’s overall growth strategy for this year. Kosch took over operation of the center from O a k M a n a g e m e n t , which had managed the venue for more than 30 years until Kosch won the contract in January. During the first quarter, Kosch se- cured the liquor license for the prop- erty and invested nearly $200,000 in interior renovations to the historic banquet center on Jefferson Avenue between Nine Mile and 10 Mile along the city’s Nautical Mile. Blossom Heath Inn opened in 1911 as a roadhouse. During prohi- bition, it was an “infamous speakeasy,” Kosch says on its web- site. Evidence of basement bars and hidden walls still exist. Interior renovations were aimed at taking the building back to its roots, but with modern conven- iences, said Gordie Kosch, who co- owns Kosch Hospitality with his brother Gary. “Little to no resources had been put into the facility for decades, and it showed,” he said, noting that his wife, Julie, and sister-in-law led the renovations. The restoration included new carpeting and paint, lighting up- grades, original hardwood restora- tion, ballroom dome restoration, new high-tech audiovisual equip- ment, a new bar and bar room, restoration of the patio, new furni- ture and, in the bar area, a wall mural by local artist Dan Melendez, said Kosch, 56. Exterior renovations and land- scaping are also underway. A May 8 grand opening fundrais- er, including automobiles from the 1920s and ’30s, is sold out. Kosch, which began as a tavern and restaurant operator in Sterling Heights in the early 1980s, today manages onsite dining operations for several area companies and parks, ranging from the H u r o n - C l i n - t o n M e t r o p a r k s to T r o y C o m m u n i t y C e n t e r , W a l s h C o l l e g e , M o n r o e C o u n - t y C o m m u n i t y C o l l e g e and private and public golf and country clubs. It also caters events and operates restaurants in northern Michigan, including A l p i n e T a v e r n & E a t e r y in Gaylord, T r o u t T o w n T a v e r n & E a t e r y in Kalkaska, and T h e B o a t h o u s e near Traverse City. The company employs 400 and posted $12 million in revenue last year, its owner said. “We were up last year about 15 percent, and we’re projecting about the same (increase) for this year,” Kosch said, noting the northern Michigan operations have done particularly well. At Blossom Heath, Kosch Hospi- tality hosted a handful of events as the renovations were progressing, he said. And it’s booked about two dozen weddings and an equal num- ber of other events. He projects the new venue will gross about $300,000 this year from events, but that’s less than half of what he is projecting for 2016 from the venue: $800,000 Both event catering and contract dining are up, said Ryan Angott, corporate marketing director at Troy-based C o n t i n e n t a l S e r v i c e s . As employers bring on more people, food sales are rising and corpora- tions are hosting more events. The number of private events and amount spent on them are also picking up as the economy im- proves, he said. The cost of the average wedding in Michigan has increased in the past three years from about $27,000 to about $31,000, Angott said. Like Kosch, Continental is pro- jecting the market will increase again this year. “People are loosening their belt a little bit; it’s nice to see and definite- ly a trend,” Angott said. YOUR AD HERE 4 CRAIN’S DETROIT BUSINESS // May 4,2015 Hutch is your single source for comprehensive asphalt and concreteservices. Call today for more information at586.427.7283or visit us at www.hutchpaving.comto learn more or to request a quote. LOOKING BACK Crain’s May 6, 1985, issue reported on developer David Johnson’s new Victor Center in Southfield. Johnson’s passion remains finding the right piece of land. More at cr ainsdetr oit .com/30 Accident hasn’t kept developer from building his lifelong dream By Kirk Pinho The diagnosis: A sixth cervical vertebra shattered into 13 pieces. But in the weeks, months and years that followed David Johnson hearing that news after a 1978 swimming pool diving accident, he didn’t become bitter about his life, or “green” — that is, envious of people who didn’t go through the same ordeal. Johnson, now 65, just became greener. Instead of de- veloping large swaths of pris- tine land as densely as possible to maximize profit and propagate cookie-cutter subdivisions, he said, he builds less than what he is allowed “to maxi- mize the physical beauty” of his projects. “I’m notorious for saying that I buy land by what I call the ‘heart flutter’ method,” he said. “It has to be emotionally compelling land, physically beautiful.” And over the years, his company, which developed the V i c t o r C e n t e r in Southfield 30 years ago and spearheaded the V i c t o r C o r p o r a t e P a r k mixed-use complex in Livonia, has made a lot of green, as well. V i c t o r I n t e r n a t i o n a l C o r p . had $112.4 million in revenue in 2014, down slightly by 1.8 percent from the previous year’s $114.4 million, according to company-provided figures. Through March, it had $42.7 million in revenue. Johnson, chairman of the Clark- ston-based company known for de- veloping luxury residential and re- sort communities, spends about 10 months out of the year in the O i l N u t B a y resort community he devel- oped on Virgin Gorda in the British Virgin Islands. That’s because, due to his injury, he doesn’t “handle the cold very well,” he said. “I love the water, so I am able to spend the winters in the warm cli- mate and with a sense of adven- ture,” said Johnson, adding that it took about six months for him to become mobile again. “I didn’t want to go play golf in Florida.” Johnson, speaking last month from his office in the 88-residence community on 300 acres, said he very quickly recalibrated his think- ing 37 years ago immediately after the accident. “When you’re told you’re never David Johnson: True to the “heart flutter” method When David Johnson was plan- ning the V i l l a g e a t B a y H a r b o r , he knew it was going to be big. “There was five miles of Lake Michigan shoreline,” he said. “The only problem was that it had the largest abandoned cement plant in the world on it.” But Johnson said he could see the potential for a large, multi- faceted community. It was planned for 800 units, and 724 are currently completed. It also features a nautical center with 227 completed docks and another 150 planned, plus six miles of non-motorized trails connecting Charlevoix to Petoskey. Bay Harbor also in- cludes a downtown area with din- ing, boutiques, lodging, golfing and an equestrian center. The development began to tan- gibly materialize in 1994 with then-Gov. John Engler on hand when the cement plant smoke- stacks were demolished in front of thousands of people. Bay Harbor also is the site of what is currently Johnson’s most pressing work: Construction of the G r e a t L a k e s C e n t e r f o r t h e P e r f o r m - i n g A r t s , a $50 million performing arts center expected to begin next year. It will be 25,000 square feet and include a 400-seat sloped floor theater and private box areas. “It will be a game-changer for performing arts centers for the greater northern Michigan area, the Midwest and the United States,” Johnson said. “It will be comparable to I n t e r l o c h e n (C e n t e r f o r t h e A r t s ) and many great facili- ties that are around.” — Kirk Pinho [PHOTO COURTESY OF BAY HARBOR] Before it became a resort community, Bay Harbor was the site of an abandoned cement plant (inset). Now, it features a nautical center, dining and lodging facili- ties, boutiques and an equestrian center. How a cement plant became a Lake Michigan community going to walk again and you’re laid up there — God, money and friends get put into perspective very quick- ly,” he said. “My goal was to do 10 percent of the housing in the U.S. per year, and See Next Page YOUR AD HERE
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OTHER VOICESJoe NeussendorferJoe Neussendorfer is an affiliate member ofthe American Society of Civil Engineers, amember of the Engineering Society ofDetroit and a member of the American BarAssociation’s forum on construction law.
IT’S NOT HOW WELL THEY WORK FOR US.IT’S HOW WELL THEY WORK FOR YOU.
The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington Bancshares Incorporated.
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Brian MarshallSVP, o er ial Region ManagerMiddle Markets
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9CRAIN’S DETROIT BUSINESS // May 4, 2015
nated through state agencies thathave experts on various subjects.
When I asked if there are any leg-islative structures or state statutesin place regarding P3s, he said: “Ourcurrent efforts have not requiredany sort of legislative action. Wemay reach a point where we willneed to work with our partners inthe Legislature to expand opportu-nities for the state’s residents tobenefit from P3 initiatives.”
MDOT Director Kirk Steudle toldme: “We actually have quite a bit of P3work going on currently. We also havesome older projects that are close to aP3. We have a partnership with Meijer
for carpool lots; we did two design,build, finance projects, which helpedus really move into other innovativecontracting options. …
“One is currently on the street for a15-year contract for freeway lightingin Southeast Michigan, all 14,000lights for design, build, finance, main-tain and operate. There also is the De-troit Intermodal Freight Terminal,where we have over half the fundsprovided by the railroads and the restby the state.”
Clear on concept
The Council of the Great LakesRegion has an exciting P3 initiative
underway. It recently announcedit will perform an in-depth studyof policies and laws governing P3sin other regions of the UnitedStates and Canada to identify bestpractices for the private sector todesign, build, finance, operate andmaintain public infrastructure.
CEO Mark Fisher said that thehope is “to create a blueprint for theregion” to follow.
I believe the public and theLegislature should get involvedwith this concept. Perhaps there isa forward-thinking state senator orrepresentative who would like toget the ball rolling with legislation
that would create a P3 authority tolook at alternatives to financingnot just transportation infrastruc-ture but all state capital projects.
In addition, Snyder should con-sider sponsoring a statewide P3conference with Business Leadersfor Michigan and other private-sec-tor stakeholders to discuss waysthat the private sector can assistMichigan and its limited resourcesin addressing future funding needs.
As the insightful Crain’s DetroitBusiness editorial on Feb. 23 stated:“The good news: The spotlight onthe P3 model may lead to its use inother projects.” �
The National Governors Associa-tion Center for Best Practices, in
partnership with the National Con-ference of State Legislatures and theCenter for Excellence in Project Fi-nance at the American Associationof State Highways and Transporta-tion, recently held a workshop to as-sist state teams exploring how pub-lic-private partnerships, often calledP3s, might be used to improve trans-portation infrastructure at a timewhen taxes alone will not provide allof the money needed for such adaunting task ahead.
What is a P3? A definition is a singleprivate-sector or a group of private-sector partners who provide upfrontfinancing for a capital project, and de-signs and builds the project based oncriteria from a public entity, such as astate highway department, then op-erates and maintains the project for aspecified time in exchange for a com-bination of user fees or other govern-ment transfer payments.
There have been many discus-sions and some movement regard-ing the use of P3s in Michigan, pri-marily in the governor’s office andthe Michigan Department of Trans-portation. But so far the averageMichigan citizen does not havebackground information about theconcept. This needs to change.
There have to be discussions byall legislative and taxpayer stake-holders so there is an understandingthat P3s offer a great alternative tojust raising taxes. There are notenough tax dollars to go around. Notjust transportation infrastructure,but all state capital projects, willhave to be a combination of tax dol-lars and private resources. Everyonehas to contribute to the effort.
Moving forward
At least two states, Arizona andPennsylvania, are moving forwardwith major initiatives.
The Arizona Department ofTransportation has established anOffice of P3 Initiatives, using bestpractices and lessons from otherstates as the basis of building astrong P3 program. The Pennsylva-nia Department of Public Trans-portation has established an Officeof Public-Private Partnerships.
In Michigan, Gov. Rick Snyderhas appointed Joseph Pavona as aspecial adviser for P3s.
In an email to me, Pavona wrote,“Michigan has a statewide P3 visionthat fosters economic developmentby addressing our state’s infrastruc-ture deficit and leveraging publicand private assets.”
He went on to write that P3 ef-forts are coordinated through theexecutive office and, in turn, coordi-
Public-private partnerships a needed path to project funding
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it was then to do one-of-a-kindcommunities.”
Johnson has accomplishedthat, not only in the Caribbean,but also in Southeast Michiganand across the rest of the state.
There is the $400 million TurtleLake development in BloomfieldTownship featuring 112 estatehome sites on 256 acres offSquare Lake Road west of Tele-graph Road.
Victor International’s Heroncommunities — Heron Bay, HeronPoint and Heron Woods — inBloomfield Township sit on about150 acres and have about 100homes. Heron Bay was the first res-idential community where individ-ual lots — not homes — sold formore than $1 million.
The $50 million Copperwoodcommunity in South Lyon Town-ship has 110 units sitting on about100 acres, while the $100 millionParks at Stonewood communityin Clarkston has 217 homes out of300 units in the master plan sittingon about 100 acres.
And what the company bills aswhat was then the largest landreclamation project in Americanhistory was its $1 billion develop-ment of the Village at Bay Harboron the Lake Michigan shoreline,consisting of 1,200 acres that wasonce the site of a sprawling ce-ment plant and mining opera-tions. (See related story, Page 4.)
But in 1985, it was another de-velopment of his that was attract-ing his attention and that ofCrain’s Detroit Business: The125,000-square-foot Victor Centerat 27400 Northwestern Highwayeast of Telegraph, construction onwhich was completed that year.
Named after Johnson’s father,Victor Center is owned by PlanteMoran Cresa LLC, the real estatearm of Southfield-based PlanteMoran PLLC.
Victor International also assem-bled 11 different parcels of land to-taling 95 acres for the Victor Corpo-rate Park at Seven Mile Road andI-275.
“Victor Corporate Park pio-neered the I-275 corridor in the1980s,” said Johnson, a MichiganState University graduate. “I usedto fly potential tenants up in a hel-icopter, sit at 144 feet (12 stories)and say, ‘This is your view fromthe top of your building.’ ”
But still he ended up on VirginGorda not only because of how itkeeps far away from the harshMichigan winters, but also becauseit was part of a life-long dream.
“My long-term goal was to do adevelopment in the Caribbean,and I spent 10 years looking forthe ideal location,” he said. “Ibought it to make it the Nantucketof the west.”
Dominic J. Moceri, who hasknown Johnson for 25 years and ispartner of Auburn Hills-based resi-dential developer Moceri Cos., called
Johnson a “highly imaginative de-veloper who puts exceptional curbappeal in everything he does.”
“He is forward-thinking withdeed restrictions he places on hisdevelopments, which grant protec-tion to those that invest in his com-munities,” said Moceri, whosecompany has developed 55,000 res-idential units in southeast Michi-gan, including the $137 million lux-ury Pinnacle subdivision in OaklandTownship.
“Someone that purchases ahome there, or a builder who buyslots, they are going to be protectedon what goes on, saying that nextdoor to them will be of the sameor greater quality.”
“We don’t allow one-upman-ship,” said Johnson, who employsabout 200 people worldwide. “Wedon’t want people showing offhow rich they are.”
Moceri, who also called John-son “gregarious” and “genuine,”said the spinal cord injury “onlysped him up, not slowed himdown.”
“When you have bolts go in yourhead and you’re paralyzed from theshoulders down,” it changes yourperspective on life, Johnson said. “Ido yoga. I ride horses for freedomof movement. I have residual dam-age on my left side, but every day isthe best day of my life.
“And I work every day because Ilove what I do.” �
Kirk Pinho: (313) 446-0412Twitter: @kirkpinhoCDB
5CRAIN’S DETROIT BUSINESS // May 4, 2015
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From Previous Page
By Kirk [email protected]
Wayne County hopes to save $10 million per year by overhaulingits procurement process.
To do that, the Wayne CountyCommission would contract with avendor to create a platform that staffwould use to find the suppliers withwhich the county negotiated thebest prices, terms and conditions,said Lloyd Jackson, director of com-munications for County ExecutiveWarren Evans.
Jackson said the system will con-trol what the administration refersto as “rogue spend” — which isspending with suppliers whose rateshave not been negotiated. It wouldtake effect within 90 days of thecommission awarding the contract.
Hugo De Campos, an assistantprofessor of supply chain manage-ment at the Wayne State UniversitySchool of Business who spent adecade in supply chain managementat General Motors Co., said WayneCounty is going to a model the pri-vate sector has been adopting foryears.
“We (at GM) achieved over 20percent cost improvements byglobalizing or ‘commonizing’ thehorns” in GM vehicles in different
countries, he said. “Everyone wasbuying their own horns, so wepicked the best supplier globally.
The overhaul is part of Evans’plan to address the county’s struc-tural deficit, which has averaged$52 million in the past four years.Last week, he also proposed elimi-nating health care benefits for fu-ture retirees; a 5 percent pay cut forall employees except for police offi-cers, prosecutors and nurses; and achange in health care options for re-tirees who retired before 2007.
Wayne County’s pension systemis just 45 percent funded and needs$910 million to become fully fund-ed.
If the county does nothing, in fiveyears the accumulated deficit is ex-pected to balloon to $171 millionand the county could run out ofcash by August 2016, according toEvans.
With full implementation ofEvans’ plan, he said, surpluses areexpected at $78.5 million in 2015(due to a transfer from the county’sDelinquent Tax Revolving Fund);$17.1 million in 2016; $5.5 million in2017; $4.5 million in 2018; and $9.6million in 2019. �
Kirk Pinho: (313) 446-0412Twitter: @kirkpinhoCDB
Wayne works to control‘rogue spend,’ save $10M
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15CRAIN’S DETROIT BUSINESS // May 4, 2015
PEOPLEON THEMOVESend news items and photos to [email protected]
CALENDAR
ARCHITECTUREJerry Attia to principal, Rossetti As-
sociates Inc., Detroit, from director ofmarketing development and project
management,SORG Architects,Washington, D.C.Also, Kirk Phillipsto architecturaldesign lead, fromdirector of hospi-tality design,Hamilton Ander-son AssociatesInc., Detroit, and
Mike Shea to senior project manager,from senior project manager, Hamil-ton Anderson Associates Inc.
CONSULTINGDavid Kauppila to principal, Fulcrum
Edge Inc., Bloomfield Hills, from glob-
Crain’s 2015 M&A AwardsJoin Crain’s Detroit Business,
in partnership with the Associa-tion for Corporate Growth - DetroitChapter, to meet the M&A Awardswinners and finalists and hearthe stories behind the top trans-actions of 2014 from the deal-makers themselves.
The event takes place 5-9 p.m.May 12 at the Troy Marriott. Ticketsare $100 in advance, or $95 forcurrent ACG members. Groups of10 or more are $95 each. Prereg-istration closes May 11 at 9 a.m.
If available, walk-in registra-tion will be $120 per person.
For information, contact KaceyAnderson, (313) 446-0300, [email protected].
SPOTLIGHTGEORGE PHIFER:
Director, Huron-ClintonMetroparks
George Phifer has been nameddirector of the Huron-ClintonMetroparks. As director, he serves
as CEO and isresponsiblefor day-to-dayoperations ofthe Huron-Clin-ton Metropoli-tan Authority.
Phifer hadbeen deputydirector andCOO of the
Huron-Clinton Metroparks. In 2010, Phifer was appointed
executive secretary to the Boardof Commissioners, serving as astaff officer of the agency whilemaintaining his responsibilitieswith the Metroparks Police De-partment as police chief, a posi-tion he has held since 2008.
Phifer, 51, worked for nearly20 years at the Pontiac Police De-partment. He retired from thedepartment as a captain in 2004.
He earned his master’s degreefrom Eastern Michigan University, abachelor of business leadershipfrom Baker College and an associ-ate of applied science degree incriminal justice from OaklandCommunity College. He is also agraduate of EMU’s Police Schoolof Staff and Command.
THURSDAY Population Healthcare Manage-
ment: Strategies That Work. 7:30-9:30 a.m. Modern Healthcare.Speakers include Joe Mullany, CEO,Detroit Medical Center; Bruce Muma,chief medical officer, Henry FordPhysician Network; and Thomas Sim-mer, senior vice president andchief medical officer, Blue CrossBlue Shield of Michigan. MaureenMcKinney, editorial programs man-ager, Modern Healthcare, moder-ates. MGM Grand, Detroit. $95.Contact: Jenna Trautman, (312)649-5238; email: [email protected]; website:modernhealthcare.com/detroit.
Collaboration for Power and ProfitBreakfast and Symposium II. 8:30-11a.m. The Black Advantage III Busi-ness Conference Biz To Biz Match.Scheduled panelists: Eric C. Williams,program director, Entrepreneurshipand Business Law at Wayne StateUniversity; Brian Ellison, principal ofIntersection Consulting Group LLC.; theRev. Elreta Dodds, author and pub-lisher; Paul K. Rozier, “serial entrepre-neur,” re-engineering strategist, andbusiness educator. Greater GraceTemple, Detroit. Tickets: $25, collab-orationforpower.eventbrite.com.
FRIDAYCEO Business Roundtable Luncheon.
Noon-2 p.m. Michigan Associationfor Female Entrepreneurs. A discus-sion with Camille Jayne, president of
Phifer
People on the Moveannouncements are limited tomanagement positions. [email protected]’s name,newtitle,company,cityin which the person will work,formertitle,formercompany(ifnot promotedfrom within) and formercitywhere theperson worked.Photos are welcome; wecannot guarantee theiruse.
Calendarguidelines. Visitcrainsdetroit.com and click “Events”near the top of the home page.Then,click “Submit Your Events” from thedrop-down menu. Fill out thesubmission form, then click “Submitevent” at the bottom of the page.
More Calendar items can befound at crainsdetroit.com/events.
The Jayne Group, on personal andcorporate branding and marketingstrategies. Bastone Brewery, RoyalOak. $35. Contact: Tonya McNeal-Weary, (866) 490-6233, email:[email protected].
UPCOMING EVENTSLearn About High-Profile Redevelop-
ments. 11:30 a.m.-2 p.m. May 12. Com-mercial Real Estate Women, Detroit.Program features a panel discussionabout the Detroit Packard Plant,Michigan State Fairgrounds, Village ofBloomfield and M-1 Rail. Gem The-atre, Detroit. $45 for CREW membersand $65 for nonmembers. Lunch isincluded; parking will be available in
the GEM’s garage.
The 2015 Tigers. 11:30 a.m.-1:35p.m. May 13. Detroit Economic Club.Speakers are David Dombrowski, presi-dent, CEO and general manager; andBrad Ausmus, manager, Detroit Tigers.MotorCity Casino Hotel, Detroit. $45DEC members, $55 guests of mem-bers, $75 nonmembers. Ticket salesend at noon May 12. Contact: (313)963-8547; email: [email protected];website: econclub.org.
APACC 14th Annual Dinner Celebra-tion. 5:15 p.m.-midnight May 16. AsianPacific American Chamber of Com-merce. Keynote speaker is Bill Imada,chairman and chief collaborative of-ficer, IW Group . MGM Grand Detroit.Tickets $200 members, dinner only($350/couple); $350, dinner and VIPreception ($650/couple); $250 dinneronly for nonmembers ($400/couple); or $400 dinner and recep-tion for nonmembers ($700/couple).Registration ends May 8. Contact:Erin Mclin, (248) 430-5855; email:[email protected]; website: apacc.net.
al manufacturing engineering direc-tor, Thermal Systems Division, Del-phi Automotive plc, Troy.
FINANCEJim Jahnke to
director, Blue RiverFinancial Group Inc.,Bloomfield Hills,from managingdirector, PalisadeCapital Manage-ment LLC, FortLee, N.J.
Vince Callaghanto manager, Blue River Financial GroupInc., Bloomfield Hills, from CEO,Business Problem Solvers, Berkley.Also, Scott Sharp to manager,acquisition support group, from CEO,S. Lawrence & Co. LLC, Flint; andGeorge Petrulis to managing director,acquisition support group, frommanaging director, McLean GroupLLC, Chicago.
MANUFACTURINGPaul DiLisio to senior vice president
of automotive and industrial originalequipmentsales, Dayco LLC, Troy, fromdirector of sales and marketing, auto-motive division, SKF USA, Northville.
AttiaJahnke
20150504-NEWS--0015-NAT-CCI-CD_-- 5/1/2015 10:37 AM Page 1
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out its challenges. That’s because theuptick in jobs and income isn’t uni-form across the county, Jacobs said.
“Clearly, there is a considerabledifference, economically, betweenthe northern end and the southernend of the county,” Jacobs said.
“While younger families are mov-ing into the southern communities,those incomes tend to be lower thanthose previously living there, andtheir needs are different. How do weintegrate the interests of bothgroups?”
Communities such as East-pointe, Roseville and St. ClairShores haven’t seen as quick of a re-covery as communities farthernorth, Jacobs said.
Household in-come in Ma-comb Countyhas droppedsharply since be-fore the GreatRecession, sur-passed only byWayne County.Median house-hold incomedropped to$52,978 in 2013
from $71,979 in 1999, a decrease of26.2 percent, according to the U.S.Census. During the same period,household income dropped 23.9percent in Oakland County and 28.5
percent in Wayne County. County Executive Hackel doesn’t
see the gap as a problem. “A lot of our growth in population
in the southern communities isfrom the city of Detroit,” he said.“They are backfilling our residentsas they migrate north, and there’snothing wrong with that.
“These residents are finding af-fordable homes, and we’re happy toprovide opportunities for everyoneat every economic level. In fact, it’scritical we supply it because all ofour futures are linked.”
Another source of populationgrowth is from immigrants. Thosefrom Iraq and from India accountfor the largest increase, accordingto data from the U.S. Department ofHomeland Security.
Between 2003 and 2011, 18,260Iraqis and 16,372 Indians came toMacomb County.
That immigrant population couldbecome a boon for the county, Ja-cobs said.
“Most of the new Americans arecoming with skills which will beimportant for the future growth ofthe county — in particular, entre-preneurial skills,” he said. “Most ofthe (immigrant population) arepart of families with young chil-dren, so there is a future genera-tion growing up in MacombCounty.” �
Dustin Walsh: (313) 446-6042Twitter: @dustinpwalsh
13CRAIN’S DETROIT BUSINESS // May 4, 2015
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SPECIAL REPORT: MACOMB COUNTY
From Previous Page
David Girodat:Fifth Third expects toadd market share.
[PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS]
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14 CRAIN’S DETROIT BUSINESS // May 4, 2015
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SPECIAL REPORT: MACOMB COUNTY
Kosch Hospitality takes overoperation of Blossom Heath Inn
By Sherri [email protected]
Rochester-based Kosch Hospitali-ty LLC has assumed management ofBlossom Heath Inn, a city-ownedbanquet and events center in St.Clair Shores, under a new 10-yearcontract. The revamped venue ispart of the company’s overallgrowth strategy for this year.
Kosch took over operation of thecenter from Oak Management,which had managed the venue formore than 30 years until Kosch wonthe contract in January.
During the first quarter, Kosch se-cured the liquor license for the prop-erty and invested nearly $200,000 ininterior renovations to the historicbanquet center on Jefferson Avenuebetween Nine Mile and 10 Mile alongthe city’s Nautical Mile.
Blossom Heath Inn opened in1911 as a roadhouse. During prohi-bition, it was an “infamousspeakeasy,” Kosch says on its web-site. Evidence of basement bars andhidden walls still exist.
Interior renovations were aimedat taking the building back to itsroots, but with modern conven-iences, said Gordie Kosch, who co-owns Kosch Hospitality with hisbrother Gary.
“Little to no resources had beenput into the facility for decades, andit showed,” he said, noting that his
wife, Julie, and sister-in-law led therenovations.
The restoration included newcarpeting and paint, lighting up-grades, original hardwood restora-tion, ballroom dome restoration,new high-tech audiovisual equip-ment, a new bar and bar room,restoration of the patio, new furni-ture and, in the bar area, a wallmural by local artist Dan Melendez,said Kosch, 56.
Exterior renovations and land-scaping are also underway.
A May 8 grand opening fundrais-er, including automobiles from the1920s and ’30s, is sold out.
Kosch, which began as a tavernand restaurant operator in SterlingHeights in the early 1980s, todaymanages onsite dining operationsfor several area companies andparks, ranging from the Huron-Clin-ton Metroparks to Troy CommunityCenter, Walsh College, Monroe Coun-ty Community College and privateand public golf and country clubs.
It also caters events and operatesrestaurants in northern Michigan,including Alpine Tavern & Eatery inGaylord, Trout Town Tavern &Eatery in Kalkaska, and TheBoathouse near Traverse City.
The company employs 400 andposted $12 million in revenue lastyear, its owner said.
“We were up last year about 15
percent, and we’re projecting aboutthe same (increase) for this year,”Kosch said, noting the northernMichigan operations have doneparticularly well.
At Blossom Heath, Kosch Hospi-tality hosted a handful of events asthe renovations were progressing,he said. And it’s booked about twodozen weddings and an equal num-ber of other events.
He projects the new venue willgross about $300,000 this year fromevents, but that’s less than half ofwhat he is projecting for 2016 fromthe venue: $800,000
Both event catering and contractdining are up, said Ryan Angott,corporate marketing director atTroy-based Continental Services. Asemployers bring on more people,food sales are rising and corpora-tions are hosting more events. Thenumber of private events andamount spent on them are alsopicking up as the economy im-proves, he said.
The cost of the average weddingin Michigan has increased in thepast three years from about $27,000to about $31,000, Angott said.
Like Kosch, Continental is pro-jecting the market will increaseagain this year.
“People are loosening their belt alittle bit; it’s nice to see and definite-ly a trend,” Angott said. �
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4 CRAIN’S DETROIT BUSINESS // May 4, 2015
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LOOKING BACK Crain’s May 6, 1985, issue reported ondeveloper David Johnson’s new
Victor Center in Southfield. Johnson’s passion remains finding theright piece of land. More at crainsdetroit.com/30
Accident hasn’t kept developerfrom building his lifelong dream
By Kirk [email protected]
The diagnosis: A sixth cervicalvertebra shattered into 13 pieces.
But in the weeks, months andyears that followed David Johnsonhearing that news after a 1978swimming pool diving accident, hedidn’t become bitter about his life,
or “green” —that is, enviousof people whodidn’t gothrough thesame ordeal.
Johnson, now65, just becamegreener.
Instead of de-veloping largeswaths of pris-tine land as
densely as possible to maximizeprofit and propagate cookie-cuttersubdivisions, he said, he builds lessthan what he is allowed “to maxi-mize the physical beauty” of hisprojects.
“I’m notorious for saying that Ibuy land by what I call the ‘heartflutter’ method,” he said. “It has tobe emotionally compelling land,physically beautiful.”
And over the years, his company,which developed the Victor Centerin Southfield 30 years ago andspearheaded the Victor CorporatePark mixed-use complex in Livonia,has made a lot of green, as well.
Victor International Corp. had$112.4 million in revenue in 2014,down slightly by 1.8 percent fromthe previous year’s $114.4 million,according to company-providedfigures. Through March, it had $42.7million in revenue.
Johnson, chairman of the Clark-ston-based company known for de-veloping luxury residential and re-sort communities, spends about 10months out of the year in the Oil NutBay resort community he devel-oped on Virgin Gorda in the BritishVirgin Islands.
That’s because, due to his injury,he doesn’t “handle the cold verywell,” he said.
“I love the water, so I am able tospend the winters in the warm cli-mate and with a sense of adven-ture,” said Johnson, adding that ittook about six months for him tobecome mobile again.
“I didn’t want to go play golf inFlorida.”
Johnson, speaking last monthfrom his office in the 88-residencecommunity on 300 acres, said hevery quickly recalibrated his think-ing 37 years ago immediately afterthe accident.
“When you’re told you’re never
David Johnson:True to the “heartflutter” method
When David Johnson was plan-ning the Village at Bay Harbor, heknew it was going to be big.
“There was five miles of LakeMichigan shoreline,” he said. “Theonly problem was that it had thelargest abandoned cement plantin the world on it.”
But Johnson said he could seethe potential for a large, multi-faceted community.
It was planned for 800 units,and 724 are currently completed.It also features a nautical centerwith 227 completed docks andanother 150 planned, plus sixmiles of non-motorized trailsconnecting Charlevoix toPetoskey. Bay Harbor also in-cludes a downtown area with din-ing, boutiques, lodging, golfingand an equestrian center.
The development began to tan-
gibly materialize in 1994 withthen-Gov. John Engler on handwhen the cement plant smoke-stacks were demolished in front ofthousands of people.
Bay Harbor also is the site ofwhat is currently Johnson’s mostpressing work: Construction of theGreat Lakes Center for the Perform-ing Arts, a $50 million performingarts center expected to begin nextyear. It will be 25,000 square feetand include a 400-seat sloped floortheater and private box areas.
“It will be a game-changer forperforming arts centers for thegreater northern Michigan area,the Midwest and the UnitedStates,” Johnson said. “It will becomparable to Interlochen (Centerfor the Arts) and many great facili-ties that are around.”
— Kirk Pinho
[PHOTO COURTESY OF BAY HARBOR]
Before it became a resort community, Bay Harbor was the site of an abandonedcement plant (inset). Now, it features a nautical center, dining and lodging facili-ties, boutiques and an equestrian center.
How a cement plant becamea Lake Michigan community
going to walk again and you’re laidup there — God, money and friendsget put into perspective very quick-ly,” he said.
“My goal was to do 10 percent ofthe housing in the U.S. per year, and
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