The winner of the 2012 Comerica Hatch Detroit contest, La Feria, an authentic Spanish tapas wine bar, is expected to open on Cass this summer. From left Hatch Detroit Executive Director Vittoria Katanski and co-founders Nick Gorga and Ted Balowski present the $50,000 grand prize to La Feria owners Naomi Khalil, Pilar Baron Hidalgo and Elias Khalil.
Photo courtesy of Franco Public Relations Group
Attorney Nick Gorga returned to Detroit wanting to make an impact. With Detroit Hatch, he certainly is.
By John Minnis
Legal News
When Nick Gorga returned to Detroit after practicing law with a top Chicago law firm, he wanted to do more than just commute.
“One of the things I wanted when I came back here,” says the University of Michigan Law School alumnus, “is not to be a 9-to-5er but be impactful. What I learned in Chicago is important is storefront rehabilitation. That is one thing I can do to keep my kids from bolting to Chicago or New York.”
So the Honigman Miller Schwartz and Cohn partner teamed up with entrepreneur Ted Balowski to form Hatch Detroit. First thing they noticed was most projects were large in scope while none were focused on “mom and pops.” Their idea was to provide a $50,000 grant — out of their own pockets along with pro bono legal, business and accounting help — to someone with a viable business plan to open a storefront in Detroit.
“We wanted not to be seen as two guys from Birmingham who wanted to come down here and save Detroit,” Gorga recently told Grosse Pointe Rotarians. So they talked to residents and developed a plan.
One good thing about Detroit, Gorga points out, is the barrier to entry is low. “I could have never done this in Chicago or New York.”
Balowski and Gorga came up with an idea tailor-made for the “American Idol”/social media age. First, they sought business plan submissions online. For the inaugural contest in 2011, they expected 10 or 12 plans. Instead, they received 250 viable plans. The two co-founders then narrowed the list down to 10.
Taking a page from “Idol,” they then opened it up to the public, with the highest vote-getter winning the $50,000 grant. They expected maybe 5,000 votes. Instead, some 65,000 votes were cast, with Hugh, a furniture/accessory store catering to the “classic bachelor pad,” opening on Cass in the Medical Center area.
Further, five of the nine finalists were also able to open their businesses due to the exposure the contest gave them.
The publicity of the first contest also attracted the attention of Comerica Bank, which took on sponsorship of future contests. The winner of the 2012 Comerica Hatch Detroit contest, La Feria, an authentic Spanish tapas wine bar, is expected to open on Cass this summer. And, as with the first contest, the 2012 finalists are also coming out winners. Detroit Vegan Soul, for one, is expected to open this summer as well.
Comerica Hatch Detroit just launched its third contest June 3.
“It’s getting easier,” Gorga says. “People know us now.”
Entrants have until July 13 to fill out the online form on hatchdetroit.com and submit necessary supplemental information. The top 10 will be announced Aug. 8. Voting will begin Aug. 12. The top four entries will be announced Aug. 19, followed by more voting. The “Hatch Off/Winner” will be announced Aug. 29.
Just by making the cut, the top 10 entrants are already winners.
“The worst of the 10 semi-finalists have to have a likelihood of success,” Gorga says. “We have to assume the public will pick the worse submission.”
Picking a business plan was easier than executing it in Detroit, Gorga found. He advises philanthropists to avoid going to the city or elected officials in order to avoid “red tape.”
“Naively, I thought if someone showed up with money and wanted to open a business, they would be welcomed with open arms,” Gorga says. “The opposite happened. We ran into road block after road block.”
Partnering with the Detroit Lions, Eastern Market and Clean Downtown, Hatch Detroit has begun a three-year initiative to clean up six neighborhood business districts in Detroit. Work could include façade renovations, parking lots, community access and landscaping.
“Then when we feel we’ve done enough in an area,” Gorga says, “we move on to the next.”
Hatch Detroit has grown considerably in a few years. It now has an executive director, Vittoria Katanski, part-time staff and a board of directors. Gorga “only” puts in about 20 hours a week of his own time, which is nothing new to Honigman’s recruiting partner and past co-chair of the pro bono committee.
“Because of my position,” he says, “I am able to have a foot in the grassroots and in the corner office.”
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