Pistons owner Tom Gores to raise $10 million for Flint water crisis
Detroit Pistons owner and Arab-American Tom Gores on Thursday morning pledged to raise at least $10 million from the private sector for immediate and long-term recovery efforts in the Flint water crisis.
How the $10 million will be distributed, and a timetable for the aid, hasn’t yet been determined, said Dan Whelan, vice president and spokesman for Gores’ Beverly Hills, Calif.-based Platinum Equity LLC.
The billionaire investor will donate some or all of the money himself while seeking contributions from the business community, locally and via his connections in the corporate and sports worlds.
“Families and children who live in Flint are suffering, but this is a national issue,” Gores said in a statement. “Flint was once a cornerstone of American industry that gave a lot to this country. We need help now more than ever and ask that people from coast to coast continue stepping up.”
Complete coverage of the Flint water crisis in our special section.
Gores, 51, grew up in suburban Flint and graduated from Genesee High School in 1982 after coming to the United States at age 4 from his native Israel. He went on to become a successful private equity billionaire, and bought the Pistons and Palace Sports & Entertainment for $325 million in 2011.
Gores wants the private sector involved in the Flint crisis beyond the high-profile water donations being made by celebrities and individuals.
“The issues facing Flint won’t be solved solely through government intervention and emergency support,” Gores said. “The private sector needs to play a role here, and I am committed to helping drive that effort. I grew up in Flint, my family has strong roots there, and I believe in the people who live there.”
Flint’s water remains too contaminated with lead for safe drinking, a situation that has erupted into a national story over the past several months. Residents are relying on bottled drinking water while the political drama plays out and public and private efforts take shape to resolve the crisis.
Leading the Flint effort for Gores will be Arn Tellem, the former sports agent he hired last year as Palace Sports’ vice chairman to broker business deals and relationships locally, and Mark Barnhill, a longtime Platinum partner. They’re heading an internal task force “focused on rallying support from other business and civic leaders, identifying programmatic needs and making sure that capital is distributed where it’s most needed,” Platinum Equity said.
Gores’ task force has three priorities:
Immediate support for short-term relief efforts to ensure access to safe drinking water and infrastructure associated with volunteer programs, distribution of resources and other logistics.
Funding for programs that help children, including healthy food and nutrition campaigns, as well as education and healthcare initiatives.
Long-term support for economic development and revitalization initiatives in Flint and surrounding communities.
PS&E’s venues, such as the Palace of Auburn Hills and DTE Energy Music Theatre, may be used to host benefit concerts for Flint, Whelan said.
“We have a lot of ways we can mobilize, so we’re going to put the full force behind it,” Whelan said.
Gores’ staff has been in early talks with organizations to see where money can best help for short-term relief, and to fund long-term help for things such as education, nutrition and health programming for Flint residents, Whelan said.
Funding also will help pay for long-term economic development programs such small business assistance, and entrepreneurship and access-to-capital programs for businesses in Flint, Platinum Equity said.
When Gores hired Tellem last year, he said the intent was to seek new business opportunities as part of Detroit’s budding renaissance. He wants to include economic development and revitalization for Flint as part of that effort, Whelan said.
According to biographical details provided by Platinum Equity, Gores was born in Nazareth, Israel, and emigrated to Michigan with his Greek father, Lebanese mother and five siblings. He worked in his father’s small grocery store while growing up, and later graduated from Michigan State University.
He launched Platinum Equity in 1995, and it had grown into a multibillion-dollar business that owns 25 companies, including several in Michigan.
Gores lives in Beverly Hills, Calif., but also maintains a home with his wife and three children in Birmingham.
Source: www.crainsdetroit.com