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www.crainsdetroit.com Vol. 28, No. 43 OCTOBER 15 – 21, 2012 $2 a copy; $59 a year

©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Outbreak State business courts meant to add expertise, cut costs puts focus Karmanos braces Thousands attend arts fest that lights up Midtown on compound pharmacies for reform’s cut Tougher safety Hospital seeks exemption, eyes Fastest-growing firms rules sought service contracts, research funding BY JAY GREENE stands to see its $4 million annual BY JAY GREENE CRAIN’S DETROIT BUSINESS CRAIN’S DETROIT BUSINESS profit from 2011 wiped out by an es- timated $4 million in reimburse- A fungal meningitis outbreak in The Barbara Ann Kar- How do they do it? Michigan and 11 other states has manos Cancer Institute ment reductions expected to begin put little-regulated compound stands to be a big loser un- in January, said CEO Gerold Bepler, Companies’ growth secrets, pharmacies under scrutiny. M.D. At deadline, Michigan health of- der health care reform — Page 11 ficials had reported three deaths $40 million over 10 years “We don’t have uninsured pa- and up to 41 patients infected by — and it’s for a non-intu- tients because the 25 percent who Crain’s Lists the tainted steroid injections for itive reason: It doesn’t pro- walk into the door” are almost all back pain by Framingham, Mass.- eligible for Medicaid because they Fastest-growing companies, based New England Compounding vide uncompensated care. have cancer and are poor or dis- Page 12 Center, a pharmacy compounding Because the Patient Protec- facility described as a mini-manu- tion and Affordable Care Act abled, Bepler said. Largest 4th quarter facturer. Nationally, as of Friday, The rest of Karmanos’ payer mix is some 184 cases in 12 states had requires most people not cov- SBA loans, Page 23 been reported, including 14 deaths, ered by Medicare or Medicaid to 28 percent Medicare with the re- said the Centers for Disease Control have health care coverage, the mainder commercial insurance and This Just In and Prevention. private pay, Bepler said. The patient deaths and illnesses increase in private insurance In fiscal 2010 ended April 30, Kar- DTE Foundation helps are at least the second instance in payments and expansion of Med- two years involving a compound icaid is expected to offset impend- manos reported net income of $6.25 closed science center pharmacy. Last year, nine deaths million on net patient revenue of in Alabama hospitals were linked ing Medicare reimbursement cuts DTE Energy Foundation $211.5 million, compared with 2009 has to contaminated intravenous med- for general-patient hospitals. joined a handful of organiza- ications from Birmingham-based net income of $3.9 million on net tions publicly named as fi- Not so for Karmanos, which Meds IV Pharmacy, which has since patient revenue of $206.6 million, nancial supporters of the closed. Michigan Science Center’s ef- CEO Gerold Bepler says Barbara Ann said Louisville-based American Hos- U.S. Rep. Henry Waxman, D- forts to reopen. Karmanos Cancer Institute could lose Calif., and other legislators have pital Directory Inc. The financial re- The foundation has com- some research funding and discontinue called for a federal investigation ports are based on Medicare cost re- mitted $250,000 to support the some services if it can’t avoid and hearings to develop tougher center’s bid to reacquire the reimbursement reductions under health ports hospitals file with the Centers See Pharmacies, Page 30 former Detroit Science Cen- care reform. See Karmanos, Page 32 ter building and assets from philanthropist Ron Weiser JEFF JOHNSTON/CRAIN’S DETROIT BUSINESS and to fund operations. Other companies and foun- dations that have stepped up Seeking a splash, Gibbs preps amphibious vehicle for market include the Ford Foundation, General Motors Foundation, ITC BY DUSTIN WALSH its name: The Quadski hits the water, its first product Gibbs gets to market after a Holdings, Lear Corp., Alex and CRAIN’S DETROIT BUSINESS wheels retract into its chassis, and it decade and a half of supplier troubles, a Marie Manoogian Foundation VIDEO blasts off through the water like a Jet-Ski. $200 million investment and run-ins with and Penske Corp. A mile into the woods just north of Ox- The Quadski is a multifaceted power U.S. regulations. Watch As of early September, the ford Township is a working quarry and a sports machine. And the Auburn Hills But at $40,000 and a low-volume produc- Quadski center had raised a little over small lake. Within view of Lapeer Road, company’s pioneering co-founders hope tion run of 1,000, profits are not likely tear up turf, $2.5 million toward its $5 mil- surf, Gibbs Sports Amphibians Inc. tests its first its launch will transform the company soon. Chairman Neil Jenkins said vehi- lion goal, said Shelly Oten- crainsdetroit product to go to market since the compa- into a revenue-generating endeavor. cles will enter dealerships next month, baker, a senior vice presi- .com/video ny’s founding 15 years ago. Gibbs unveils the Quadski today at the with full production beginning in 2013. He dent at Eisbrenner Public The Gibbs all-terrain vehicle, the Quad- Detroit Athletic Club and is expected to an- expects to hire as many as 200 at its Relations and the trustee ski, cuts through the emblematic Michi- nounce a contract with five dealers, and Auburn Hills plant to support the project. spokeswoman for the science gan landscape of tall oaks and firs, over talks with five more, targeting markets in “There’s an awful lot of water in the center board of directors. rolling hills to the water’s edge. But here’s Michigan, Florida, Texas and New York. — Sherri Welch where the all-terrain vehicle lives up to If successful, the Quadski will be the See Splash, Page 31 Workforce Development Nov. 7 and the 7:30 – 10 a.m. Challenges of Hiring Quad E, Fairlane Center North Business Over Breakfast Series Register at www.crainsdetroit.com/events or call 313.446.0300 NEWSPAPER 20121015-NEWS--0002-NAT-CCI-CD_-- 10/12/2012 4:56 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS October 15, 2012

MICHIGAN BRIEFS 36-foot pencil drawing leaves ported 2,070 jobs. Ⅲ Steelcase Inc.’s pyramid- indelible impression at ArtPrize For CEO, cost of Obamacare abortion measure too high shaped research building in Adona Khare, a part-time art Gaines Township south of Grand John Kennedy, president and CEO of Kentwood- paying for controversial products that cause abor- teacher from California, won the Rapids cost $111 million to build in based Autocam, doesn’t like the Patient Protection tions, and it does nothing to improve access or elim- $200,000 prize at this year’s ArtPrize 1989. Three years ago, township as- and Affordable Care Act — commonly known as Oba- inate cost for essential medications like insulin and competition in Grand Rapids for sessment records put its worth at macare. For him, it’s not about costs but conscience. heart medication,” said Kennedy, who provides cov- her 36-foot-long drawing of life- $70 million, Last week, MLive.com Kennedy last week sued the federal government erage for 680 U.S. employees. sized elephants and other animals reported the building was for sale. in U.S. District Court, saying his Catholic beliefs pre- The lawsuit seeks a court injunction to stop the — using only a pencil, an eraser For $19.5 million. vent him from complying with the act’s require- federal mandates when they become effective Jan. 1. and a sock. It took her a year and a Ⅲ If you’re one of those people ment that he add abortion-inducing drugs to Auto- Failing to provide the coverage could cost Auto- half to make, MLive.com reported. who call carbohydrates “carbs” in cam’s health care coverage. He also explained his cam up to $100 a day per employee — about $24 mil- Khare plans to buy a new mat- a tone of voice that suggests you reasons in a YouTube video titled “In Good Con- lion a year, Kennedy told MLive.com. Employees of tress. think that they and not John science.” As of Friday, it had generated more than the company, which makes components for automo- The top juried award went to De- Wilkes Booth killed Abraham Lin- 12,000 views. tive fuel systems and medical instruments, pay no troit artists Gina Reichert and coln and caused the breakup of “This law requires me to violate my beliefs by health care premium, he said. Mitch Cope for their 3-D piece Charles’ and Diana’s marriage, “Displacement.” The couple run then stay away from Kalamazoo the nonprofit Design 99 experi- 10,000 to 15,000 were expected. So novation subsidiary. Alticor wants starting Oct. 20, when the first mental design store in Hamtram- hope they brought extra blankets. a buyer that will accelerate adop- MICH-CELLANEOUS Kalamazoo Bread Festival will com- ck, where they try to stabilize The society has made a three- tion of wireless power, MLive.com Ⅲ With three months still to go mence. You are advised to take the housing and bring artists to their year commitment to Grand reported. in the year, a record 1.43 million path of yeast resistance. neighborhood. Rapids, MLive.com reported. Each “The plan was always to sell it people have visited Sleeping Bear ArtPrize organizers estimate show brings an estimated $15 mil- so it could get into the hands of Dunes National Lakeshore west of Find business news from the event attracted a record 400,000 lion into the city. The city’s people who do it better over the Traverse City. The National Park around the state at crainsdetroit people this year. Restaurant Week even resched- long haul than we can,” said Alti- Service said an economic study of .com/crainsmichiganbusiness. uled to take advantage of the thou- cor Vice President Jim Weaver. national parks showed that Sleep- Sign up for Crain's Michigan sands of quilters in town. On the block: More than 240 ing Bear accounts for $120.4 mil- Business e-newsletter at crains Grand Rapids’ biggest convention And did we mention the quil- patents worldwide and 480 pend- lion in spending annually and sup- detroit.com/emailsignup. attracts thousands of wrappers ters’ flash mob? Or the musical ti- ing patents. tled “Quilters”? Any pillow fights? The eCoupled wireless technolo- So what is Grand Rapids’ largest gy can be used to boil water on a CORRECTIONS multiyear convention? Office fur- countertop without the counter Ⅲ On Page 3 of the Oct. 8 issue, the article “Physician group to be area’s niture? Nope. According to the Ex- Alticor to sell know-how that feeling hot. This past January at largest” incorrectly identified The Physician Alliance as St. John Provi- perience Grand Rapids convention turns cold counter into hot stove the Consumer Electronics Show in dence HealthPartners. Earlier this year, St. John Providence HealthPart- bureau, more than 21,500 visitors Las Vegas, Fulton Innovation ners changed its name to The Physician Alliance. came to the DeVos Place convention Ada-based Alticor, the parent of showed off technology that al- Ⅲ A Rumbling in the Oct. 1 edition, “PBS show touts startups,” includ- center for the … here it comes … Amway Corp., will sell its eCoupled lowed a cellphone to be charged ed an incorrect Web address for companies to contact the show, “Start American Quilter’s Society Show & wireless power intellectual proper- through a handbag without the Up.” The correct address is startup-usa.com/contact. Contest. Now consider this: Only ty developed through its Fulton In- need for wires.

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October 15, 2012 CRAIN’S DETROIT BUSINESS Page 3 Biz about to get own courts Focus: Family Law and even the (judicial) system in Early adopters Oakland, Macomb must adapt time and cost. The governor has supported the BY CHAD HALCOM gan become more competitive with disputes and lower the cost of re- business court concept and is ex- CRAIN’S DETROIT BUSINESS other states in courting new busi- solving them. pected to sign the bill this week, ness and shed the state’s Rust Belt “We appreciate that there are said Snyder press secretary Sara Recovery puts A bill expected to be signed into image for one of innovative prac- some subtleties in business-to- Wurfel. law this week by Gov. Rick Snyder tices that adapt to the needs of busi- business litigation that may get “It’s an approach (Snyder) be- divorces back establishes at least 17 dedicated ness, said state Rep. John Walsh, R- lost sometimes within the mechan- lieves in strongly and is part of a business courts statewide — in- Livonia, the bill’s sponsor. ics of the judiciary,” Walsh said. broader effort to help ensure our on track, Page 17 cluding Oakland and Macomb While business litigants usually “The bottom line is saving money. court system is as responsive and counties, which already had get judges of varying experience If an experienced jurist can be in- efficient as it can be,” she said. formed such courts and now must by random assignment, the new volved in an area of litigation “This kind of approach can help modify them. model is meant to bring more cer- where they have expertise early resolve complex business cases The new law could help Michi- tainty and expertise to business on, then that saves the litigants See Courts, Page 33 Company index These companies have significant mention in this week’s Crain’s Detroit Business: Alta Equipment ...... 11 American Academy of Matrimonial Lawyers . . . 17, 18 Art Detroit Now...... 3 Warm summer Ash Stevens ...... 30 Atlas Oil ...... 15 Barbara Ann Karmanos Cancer Institute ...... 1 Black Star Farms ...... 3 brings wineries Bodman ...... 33 BorgWarner ...... 11 Center for Healthcare Research & Transformation . . 6 Chrysler Group ...... 15 fruitful season Cloud Nine Theater Partners ...... 7 Cultural Alliance of Southeast Michigan ...... 33 Dearborn Hyatt Regency ...... 20 What was fine for wine Detroit Institute of Arts ...... 33 Detroit Medical Center ...... 32 put the squeeze on juice Detroit Tigers ...... 4 DTE Energy Foundation ...... 1 BY HOWARD LOVY Fori Automation ...... 21 SPECIAL TO CRAIN’S DETROIT BUSINESS Gentherm ...... 11, 14 Gibbs Sports Amphibians ...... 1 Call it global warming or climate change, G.R. N’Namdi Center for Contemporary Art ...... 33 it doesn’t matter to winemaker Lee Lutes. Great Lakes Coffee Roasting ...... 7 He calls the past few years of long, warm, dry summers an “exceptional growing sea- Hertz Schram ...... 17 son” for his grapes. Honigman Miller Schwartz and Cohn ...... 33 Last week, the head winemaker at Black PHOTOS/DAVE LEWINSKI Innovation Ventures ...... 14 Star Farms helped harvest the crop on the Children at Dlectricity could explore Frontier Town, a kid-sized tent camp just off Woodward Avenue. Inteva Products ...... 11, 13 winery’s 150 acres on the Jaffe Raitt Heuer & Weiss ...... 17, 19 Leelanau and Old Mis- Kenwal Steel ...... 11 sion peninsulas. Kresge Foundation ...... 33 And while the region’s Lakeshore TolTest ...... 11 crop of tart cherries was Festival illuminates The Maple Theater ...... 7 ruined by the weather’s Meritor ...... 11 mood swings in the Michigan Grape and Wine Industry Council ...... 3 spring — 80 degrees in Michigan Pharmacists Association ...... 30 March, then frost in May Michigan Science Center ...... 1 — wine grapes mature the arts in Midtown Midtown Detroit ...... 33 later and, for the most Lutes M J R Digital Cinemas ...... 7 part, survived if not National Equity ...... 22 thrived. The variety of grapes grown in Nichols, Sacks, Slank, Sendelbach & Buiteweg . . . 19 Michigan are really meant for warmer re- 75,000 attend Dlectricity; Physicians Compounding Pharmacy ...... 30 gions. St. Joseph Mercy Hospital ...... 30 So climate change? Sure, bring it on. Saturn Electronics & Engineering ...... 11 “I’ve been making wine up here for 20- estimated impact tops $1M some years,” Lutes said, “and things are Silver Leaf Vinyard ...... 31 definitely different.” BY DUSTIN WALSH Southeast Michigan Surgical Hospital ...... 30 Linda Jones, executive director of the CRAIN’S DETROIT BUSINESS TI Automotive ...... 11 Michigan Grape and Wine Industry Council, a Toering Law Firm ...... 33 program of the Michigan Department of Agri- When the sun went down and the lights went University of Michigan ...... 6 culture and Rural Development, explains that up in Midtown on Oct. 5-6 for Detroit’s inaugur- Univ. of Michigan Comprehensive Cancer Center . . 32 this past summer in Michigan, the average al Dlectricity light festival, it was the culmina- Warner Norcross & Judd ...... 18 tion of three years of planning and a concerted accumulation of “heat units” rose — which Woodward Avenue Action Association ...... 22 is just a fancy way of saying it has been effort to expand the city’s lineup of arts and cul- warm for the crops. ture events. The festival, which included 35 glowing art “ToBe Detroit” is the title of a collage of moving “Because of our northern climate, we are images projected onto the Garfield Lofts, 4600 installations, attracted 75,000 people down- always pushing the envelope with many of Woodward Ave. Department index these varieties to ripen them satisfactorily town and exceeded organizer expectations for in an average year,” Jones said. “So, when attendance and economic impact. Extrapolat- blanche, or nighttime art, which is a popular BANKRUPTCIES ...... 6 ing from averages on arts event spending, the we have a warm year, that’s a bonus be- medium in the international arts community — BUSINESS DIARY ...... 26 impact of Dlectricity is likely to have exceeded similar events took place in New York City and cause we don’t have to worry about getting CALENDAR ...... 27 a frost before the grapes are fully ripe.” $1 million. Paris on the same dates. CLASSIFIED ADS ...... 29 In southern Michigan — primarily the Dlectricity was the brainchild of Mark “We wanted to do something that would put Lawton area, west of Kalamazoo, where Schwartz, chairman of Art Detroit Now, an orga- Detroit on the map from an international stand- JOB FRONT ...... 28 nization dedicated to promoting metro Detroit’s KEITH CRAIN...... 8 See Wine, Page 31 See Arts, Page 33 arts community. The concept is based on nuit LETTERS...... 8 MARY KRAMER ...... 9 Inside scoop Crain’s Michigan Business OPINION ...... 8 See what’s on the minds of reporters on Sign up for the roundup of statewide THIS WEEK @ PEOPLE ...... 28 the front lines of gathering Crain’s news delivered to e-mail inboxes every WWW.CRAINSDETROIT.COM business news at crainsdetroit.com/blogs. week: crainsdetroit.com/getemail. RUMBLINGS ...... 34 WEEK ON THE WEB ...... 34 20121015-NEWS--0004-NAT-CCI-CD_-- 10/12/2012 5:34 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS October 15, 2012 Play for pay? Not exactly for Tiger players in playoffs

BY BILL SHEA full and partial shares — that were the remainder. cessions and retail provider, Buffa- CRAIN’S DETROIT BUSINESS PLAYER POOL worth almost $127,000 each. MLB collects 15 percent of the lo-based Sportservice. Each of the World Series-win- gate during the World Series. All MLB playoff games are aired Here is how the players’ portion of Detroit Tigers ace pitcher Justin ning St. Louis Cardinals players got The home team keeps all of the nationally, and the broadcast Verlander didn’t get any of the rev- postseason ticket sales revenue is divided. The money from each $323,000. locally generated ancillary playoff rights fees from those deals are enue generated at O.co Coliseum round is pooled. So, the further the Tigers ad- revenue, which is money from con- shared equally by all 30 teams. during his complete-game shutout Ⅲ World Series winner: 36 percent vance in the playoffs, the more cessions, merchandise and parking Bill Shea: (313) 446-1626, of the Oakland Athletics in Thurs- Ⅲ World Series loser: 24 percent money the players can earn. Same — although the Tigers have to split [email protected]. Twitter: day’s deciding Game 5 of the Ⅲ for Tigers owner Mike Ilitch, who some of that revenue with its con- @bill_shea19 American League Division Series League championship series losers: 24 percent gets most of the money in the last in Oakland. Ⅲ Division series losers: 13 few games of each series. Instead, the money — estimated percent The players and owners also can to be $1 million-plus — went to the Ⅲ Wild card losers: 3 percent get a bigger payday depending on team ownership, umpires, vendors Source: Major League Baseball collective their opponent. and Major League Baseball. bargaining agreement For example, the New York Yan- How revenue is apportioned, kees set ALCS ticket prices at Yan- and the theoretical financial in- kee Stadium from $45 to $515, The collective bargaining agree- centives at work, are unique to the whereas the Baltimore Orioles had ment reached last year between playoffs. tickets from $35 to $150 at Camden MLB and the players union re- The only money Verlander, Yards. The winner of the Yankees- veals how postseason ticket money Miguel Cabrera and Prince Fielder Orioles ALDS series plays the — and the rest of the Tigers and is alloted. Ticket revenue is the only post- Tigers in the league finals. A’s players — get paid to play in Detroit’s ALCS tickets are $75 to post-season games is from ticket season money that gets divvied up. $170. sales pooled from the first three or The labor deal calls for 60 per- World Series ticket prices are four games of a series. cent of ticket sales from first three set by MLB. In fact, players get the majority games of the best-of-five division There also are guarantees in the of the gate from those games. And, series and from the first four labor deal that set a minimum for of course, they presumably banked games of the two league champi- some of their multimillion-dollar onship series and the World Series the pool. For example, the World contracts and endorsement deals to go into a pool divided among the Series portion cannot be less than from the regular season, so they’re players. The league series and $4.6 million for the winner and los- not struggling to pay the rent. World Series can go as many as er to split. The further the Tigers advance, seven games. If the pool is less than that, mon- the progressively larger share of Last year, the player pool was ey is taken from the game’s non- the pool the players will receive. $57 million, and the AL Central Di- player revenue share to ensure it Oakland will be among the four vision-winning Tigers got $6.8 mil- meets the minimum. losing teams splitting 13 percent of lion of that, according to MLB. It ticket revenue pooled from the di- was divided into 44 individual Short series visional round. (See box.) shares — players vote on who gets In theory, owners enjoy a bigger payday if every series is dragged out, but baseball insiders don’t be- lieve they want that to happen. Andrew Zimbalist, professor of Are you economics at Smith College and au- thor of several sports finance books, including May the Best missing an Team Win: Baseball Economics and Public Policy, said he believes owners want to win in the fewest AT KP - WE’RE A TEAM. WHEN WE PARTNER WITH opportunity? number of games. YOU ON A PROJECT YOU BECOME AN EQUAL PART OF “I think the team owners want to win as quickly as they can,” he THE TEAM. WE WORK TOGETHER TO ENSURE A QUALITY said. “They’d be happy to forgo a PRODUCT IS DELIVERED ON TIME AND ON BUDGET. couple of million dollars in ex- change for being a winner.” That’s because winning the BOB ROSE IS THE NEWEST MEMBER OF THE KP SALES World Series brings additional & MARKETING TEAM. HIS ENERGY AND PASSION FOR revenue the following season in the form of increased season ticket THE PRECAST INDUSTRY IS WHAT SETS BOB APART. sales and the attendant increases BOB’S GUIDANCE IN THE DESIGN AND PLANNING in supplementary revenue from concessions and merchandise, OF YOUR PROJECT WILL ENSURE AN EXCEPTIONAL Zimbalist said. PRECAST EXPERIENCE FROM THE START. CONTACT Championship teams also typi- BOB TO LEARN HOW PRECAST COULD ENHANCE YOUR cally see more suite and premium seat sales, new sponsorship deals NEXT PROJECT! and, theoretically, increased bar- Your life insurance policies gaining leverage if a new local ca- may be able to work harder for you. ble deal is on the horizon. Still, there’s money to be made A periodic analysis and review can: from postseason games, but it’s not massive amounts for the teams. • Save premium dollars Zimbalist estimated that Wild Card and divisional round games • Improve, extend or guarantee your coverage generate about $800,000 a game for the home team, while the league • Generate cash championship round is about $1 • Make sure your plan is on track million a game. The World Series gins up about $1.2 million for teams, he said. Call for a complimentary analysis and review. No place like home What doesn’t go to the players in the playoffs is shared by the um- WWW.KERKSTRA.COM pires, the team owners and MLB, BIRMINGHAM, MI 248.731.9500 WWW.SCHECHTERWEALTH.COM with the owners getting the bulk of DBpageAD.qxp 10/3/2012 2:00 PM Page 1 20121015-NEWS--0006-NAT-CCI-CD_-- 10/12/2012 4:57 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS October 15, 2012 What is your greatest business challenge? Analysis: Medicaid expansion could We have the team for that. save state nearly $1B over decade Our client teams are focused on providing insight for your greatest BY JAY GREENE “We are still studying this issue. CRAIN’S DETROIT BUSINESS There are questions and concerns business and legal challenges along People who are over it,” Adler said. “If we move to Michigan could save nearly with foresight for the “ expand Medicaid, there is the idea $1 billion over 10 years if the uninsured we would save money in the short issues on the Legislature were to approve term by having the federal govern- an expansion of Medicaid to have worse ment cover these people. But for cover an estimated 619,000 horizon. how long?” uninsured residents, said health Adler said it is unknown how the Ann Arbor-based Center much covering an additional for Healthcare Research & outcomes 600,000 people would cost Transformation and econo- Michigan after the 10-year study mists with the University of than the period. Michigan. Under the Patient Protec- insured. “There also is a philosophical tion and Affordable Care Act, ” debate that is occurring,” Adler states are allowed to expand their Marianne Udow-Phillips, said. “If the federal government Medicaid programs to people at or Center for Healthcare Research saves Michigan money, this is still below 138 percent of the federal & Transformation federal tax dollars ... coming from poverty level beginning in 2014 a budget that can’t be balanced. It through legislative action. This tor, in a statement. probably will be paid for in the fu- would enable a family of four with “We know from research that ture by higher taxes by future gen- income of up to $31,809 to be cov- people who are uninsured have erations.” ered by Medicaid. worse health outcomes than the But the report also said that The federal government will pay insured, and that the uninsured Michigan companies and individu- nearly all of the costs of the Medic- often receive their care — to the als who purchase health insurance aid expansion from 2014 to 2017, extent that they do get care — in could benefit with lower premi- McDonald Hopkins PLC then pick up 90 percent of the costs the highest-cost settings,” she ums because reducing the num- bers of the uninsured would elimi- 39533 Woodward Ave., Suite 318, Bloomfield Hills, MI 48304 • 248.646.5070 of the expansion after that. The said. federal government will pay about But Michigan legislators have nate the “hidden tax” on Stephen M. Gross 66 percent of Michigan’s Medicaid not taken any steps to approve a insurance. Detroit Managing Member costs next year. Medicaid expansion. The hidden tax happens when Chicago • Cleveland • Columbus • Detroit • Miami • West Palm Beach “The facts of this analysis show Ari Adler, press secretary to hospitals treat uninsured patients that expanding Medicaid in House Speaker Jase Bolger, R- and pass those unpaid expenses to mcdonaldhopkins.com Michigan will benefit the state Marshall, said no hearings are health insurance companies that scheduled this year to consider ex- Carl J. Grassi, President and its citizens,” said Marianne increase their premiums to cover Udow-Phillips, the center’s direc- panding Medicaid in Michigan. those additional costs. The report also found that: Ⅲ Michigan’s uninsured would drop to 290,000 in 2020 from about 1.1 million in 2010. Presented by Ⅲ Michigan would add a project- ed 619,000 people, mostly unin- sured, into the Medicaid program with no net cost to the state until 2020. Ⅲ The state would save money YOU’RE INVITED every year from 2014 through 2019. Manufacturing is a The center, based at the Univer- “ sity of Michigan, is a nonprofit MANUFACTURING OUTLOOK 2013 job growth leader in partnership between the universi- the U.S. for the first ty and Blue Cross Blue Shield of Michigan. AN AMERICAN time in several decades Jay Greene: (313) 446-0325, [email protected]. Twitter: creating an abundance @jaybgreene RENAISSANCE of opportunities for U.S. manufacturers. BANKRUPTCIES REGISTRATION NOVEMBER 1 2012 ” The following businesses filed for Pre-registration for this complimentary program Chapter 7 or 11 protection in U.S. Join us on-site at UHY’s Farmington Hills office or on-line via webcast is required. Breakfast will be provided. Space is Bankruptcy Court in Detroit Oct. 5-11. limited. Multiple registrations are welcome. To RSVP Under Chapter 11, a company files for reorganization. Chapter 7 involves to- On-site Program On-line Webinar contact Courtney Gray via email [email protected] or phone 586 843 2533. Please declare either tal liquidation. 9:00AM–11:45AM EST B & B Studios LLC, dba Rembrandt 8:30AM–11:45AM EST on-site or on-line. Webinar log-in instructions Kitchens & Bath, 10600 Galaxie Ave., will be released at a later date. Ferndale, voluntary Chapter 7. Assets: $87,890; liabilities: $1,607,260.67. PROGRAM SCHEDULE Cosgro Restaurant Group Inc., 39405 Ply- mouth Road, Plymouth, voluntary 8:30AM—9:00AM EST Breakfast and Networking Chapter 11. Assets: $43,000; liabilities: 9:00AM—9:25AM EST Opening Commentary / What is Driving American Manufacturing? $536,168. 9:25AM—9:55AM EST Global Manufacturing Economic Forecast Station 885 Inc., 885 Starkweather St., 9:55AM—10:20AM EST Shale Oil & Gas Production: A New Chapter in Domestic Manufacturing Plymouth, voluntary Chapter 11. As- 10:20AM—10:35AM EST Refreshment Break sets: $62,300; liabilities: $260,254. 10:35AM—11:00AM EST Medical Devices: Bringing Your Products to Market Superior Mailing & Printing Services Inc., P.O. Box 305, Richmond, voluntary 11:00AM—11:25AM EST Maximizing Momentum for Automotive Suppliers Chapter 7. Assets: $19,000; liabilities: 11:25AM—11:45AM EST Panel Discussion $1,083,272.12. 23 & Metzen Storage LLC, 46948 N. Gra- Thomas V. Alongi, CMA, CPA CPE credit will be offered. tiot Ave., Chesterfield Township, vol- Partner & National Manufacturing untary Chapter 11. Assets and liabili- Practice Leader ties not available. — Ryan Kelly 20121015-NEWS--0007-NAT-CCI-CD_-- 10/12/2012 4:58 PM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 7

KENNY CORBIN Jon Goldstein shows off new seats at Maple Theater in Bloomfield Township. Maple Theater gets $1.5 million makeover; coffee shop, full bar

BY NATHAN SKID will be open 6 a.m.-10 p.m. daily. CRAIN’S DETROIT BUSINESS Goldstein is also opening a bar in the lob- Debra & Max Ernst Cardiovascular Center In Memory of Ellen Ernst by that will serve 12 craft and domestic When Jon Goldstein and a group of in- beers, liquor and wine. vestors decided to buy The Maple Theater in A Bloomfield Township regulation stipu- Bloomfield Township in November, they be- lates that guests must have a paid movie ticket gan making plans for $1.5 million in up- to buy alcohol, but Goldstein said he hopes to grades to retain and attract art house movie have a full liquor license in six months or so. Max Ernst never went buffs with a high-end venue. Goldstein said the theater and coffee shop Goldstein is expanding the 720-seat the- should generate about $2.5 million in rev- ater by adding a coffee shop and a full bar, enue during its first year of operation. completely renovating the interior, in- Goldstein has invested in eight other to medical school, stalling new seats with more leg room, movie theaters under a Bloomfield Hills- widening aisles and converting to three larg- based company called Highline Investments er, 3D-capable screens. LLC: Emagine theaters in Royal Oak, Canton Goldstein formed Bloomfield Hills-based Township, New Haven and Rochester Hills, but he just Cloud Nine Theater Partners LLC with 25 local two in Pennsylvania, one in Maryland and investors, who bought the theater from Los another in New York. Angeles-based Landmark Theatre Corp. “The first thing I learned in business might save your life. Cloud Nine took over the venue in Febru- school was supply and demand,” Goldstein ary and closed it in July to begin renova- said. “The supply of art houses and the tions. Goldstein expects the theater, on screens showing those films is real low, Maple just west of Telegraph Road, to be while the demand is strong.” He simply wanted to honor his late wife, Ellen. To ready for movie goers by Nov. 1. But Goldstein said the ability to get exclu- Goldstein said he is targeting an affluent, sive screenings is even more important to establish a legacy that would keep her memory alive. older customer base. his bottom line. The theater has an exclu- “It’s upscale cinema, not a place to see com- sive run of “The Sessions,” starring Helen Max Ernst found that legacy at Beaumont. The hospital ic book movies,” Goldstein said. “It’s for older Hunt and John Hawkes, for its reopening. has an innovative program designed to prevent sudden people who want to see Oscar-caliber films.” “If you can get exclusives, it’s a great busi- Goldstein says he is planning to increase ness to be in,” Goldstein said. “And if you cardiac deaths in adults and young athletes. ticket prices to about $11 and is implement- can get the right titles, it’s an even better ing club memberships: The Maple Club has business to be in.” With his donation, Beaumont will more than double the an annual membership fee of $85 per couple But Mike Mihalich, president of Oak Park- number of people who can be screened each year at our or $50 for an individual, and the Maple VIP based M J R Digital Cinemas LLC, said getting ex- Club costs $500 annually for couples and clusive runs on movies can be difficult. new Ernst Cardiovascular Center. $300 annually for individuals. “There is a limited market for the art films, Members receive free movie passes, up to and it’s disintegrating,” Mihalich said. “The “What excites me most is helping people before they four free popcorns and access to club-level release patterns from distributors have gone have a heart attack,” said Mr. Ernst. “And in years to seating. Maple VIP members receive an all- wider, so they don’t allow a single theater to come, when we look back on all the lives that have been access pass to the theater, club-level seating play a picture for a long period of time.” and a 10 percent discount on all purchases. Mihalich owned the Main Theatre in Royal saved in this center, the results will be even more Cloud Nine is increasing the number of Oak for 10 years before converting it to the exciting.” employees at the theater from 12 to 45, ex- Main Art Theatre in 1993. He sold it to Land- panding the footprint of the theater by 6,000 mark in 1998. He now owns eight theaters All of us at Beaumont thank the Ernst family for their square feet and making room for a Great Lakes with 137 screens in Southeast Michigan and Coffee Roasting Co. coffee bar in its lobby. one in Adrian. generous gift – and for the lives their gift will save. Goldstein entered into a licensing agree- “When I had the Main Art Theatre, I had ment with Great Lakes Coffee. Goldstein will pictures I could run for 16 to 18 weeks at a prof- use the brand, equipment and recipes, while it,” Mihalich said. “Today, if a film breaks out, Great Lakes takes a percentage of profits. rather than letting an art house have it as an The theater will have a separate entrance exclusive, the distributors will widen the run for the coffee shop facing Maple to attract out by taking them to larger theaters.” customers not attending a movie. The coffee Mihalich also said that art-house theaters shop is loosely based on the Great Lakes Cof- don’t sell as many food concessions, which A Not-for-Profi t Provider fee Roasting Co. in Midtown. are his biggest profit centers. But Goldstein Greg Miracle, owner of Bloomfield Hills- isn’t worried. based Great Lakes, said Great Lakes will “They have been predicting the death of handle beverages at The Maple Theater, in- movie theaters since 1942 with the advent of cluding recipes and barista training, but television,” Goldstein said. “In my mind, Find out how you can save lives, too. If you would Cloud Nine is in charge of operations. there is a difference between home enter- like to make a gift, please go to our website at Goldstein said Great Lakes Coffee is an tainment and out-of-home entertainment, foundation.beaumont.edu or click on the code important component of his business plan, and that experience will never die.” since it will generate revenue during off- Nathan Skid: (313) 446-1654, with your phone. times for movies, like the early morning. It [email protected]. Twitter: @nateskid 20121015-NEWS--0008-NAT-CCI-CD_-- 10/12/2012 5:37 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS October 15, 2012 OPINION OTHER VOICES Winners and losers, Take action on student debt We find ourselves at a This is an emergency. their daily minimal living expens- crossroads of the realities Our higher education sys- es and search for a job compatible of costlier higher educa- tem has gone from being with their degrees or experience. tion and the students who the best in the world to At times, the debt becomes so over- biz courts to bars desire to participate. 12th. Education is one of whelming that students are forced The federal govern- the cornerstones of to drop out. n Friday, we at Crain’s, like much of metro Detroit, ment saw the need to fi- democracy, and it cannot If we do not devise a new policy were wallowing in relief and satisfaction over the De- nancially assist the auto be allowed to fail. to assist the next generations, we O troit Tigers’ American League Division Series win. We industry, because thou- Solutions include cur- will lose our educated population sands of jobs were in- riculum changes to allow and continue to drop down the hi- hope they continued to have success over the weekend. volved. The government students to graduate erarchy of educated countries. We In that vein, we’d like to declare our own recent winners was forced to “bail out” Henry Baskin faster and learn what they must encourage our graduates to and losers. the rapacious money managers need, sharing of programs among complete their education and as- Winners: Michigan businesses, who will get the benefit of who created huge profits for state universities sist them in finding dedicated business courts who will hear complex business cas- themselves and placed the entire and the restoration employment. The country, and the world, at risk of of the right to sub- government can es. As Chad Halcom reports on Page 3, Gov. Rick Snyder is ex- Education is financial disaster, but they were ject a student loan “ further assist by of- pected to sign legislation this week that would create the “too big to fail.” to the usual rules of one of the fering credits courts, which would begin operation sometime next spring. Ignored, now, are the thousands bankruptcy. All against debt, or in The idea of the courts is to have trained judges who can of university students who are in serve to prevent cornerstones of some fashion give oversee litigation more quickly and accurately than the gener- debt, unable to obtain credit and disenfranchisement credit to employers have difficulty finding employ- and disinterest by to incentivize hir- al courts allow. democracy, and it ment. The number of these stu- students in higher ing state-supported Losers: Downtown bars and restaurants, who find them- dents, and education itself, are education. cannot be allowed university gradu- selves cross-checked by the stalemate between National Hock- similarly “too big to fail.” Trillions Credit cards and ates, and allow ey League team owners and players. As Bill Shea reported on of dollars are owed in student debt. other debts are dis- to fail. bankruptcy of stu- www.crainsdetroit.com, Rub BBQ Pub expects to lose $15,000- Making matters more challenging, chargeable; so, too, ” dent debt. tuition increases have become the should be student Henry Baskin It is time to final- $20,000 for every Red Wings home game lost. Hopefully, it will “new normal.” loans (except per- ly resolve the co- get a little of that back from an extended Tigers playoff and While not everyone belongs in haps loans for students at “for- nundrum of enrolling students World Series run. higher education, it is time to take profit” universities). It should be who do not graduate or producing Winners: Michigan television stations, which have collected action and use the report of the accomplished by a regulation that graduates who may not find em- nearly $30 million in advertising dollars since August for and U.S. Senate Committee on Health, allows a student loan from a state- ployment and are unable to repay Education Labor and Pensions, supported university to be dis- or eliminate their student debt. against ballot proposals on the Nov. 6 ballot. And that’s consid- which showed that American tax- charged in bankruptcy without Henry Baskin is former chair- ered light compared to what is yet to come. The losers may be payers are essentially supporting negatively affecting the student’s man of the Oakland University viewers, who will be bombarded with confusing, less-than- students of “for-profit colleges” credit score, if students would oth- Board of Trustees and principal of transparent communication. whose loans exceed a default rate erwise qualify. the Baskin Law Firm in Birming- Winner: The Oct. 5-6 Dlectricity light festival in Midtown exponentially greater than the de- It has become virtually impossi- ham. He also served as a consultant fault rate for state university stu- ble for many students to repay ed- to the Central Michigan University was a home run on all dents. ucation loans and continue to pay Board of Trustees. counts: It attracted 75,000 people — 50 percent more than the 50,000 hoped for — and drew at- tention to galleries, stu- LETTERS dios and other cultural assets in the area. As Dustin Walsh re- Story on state HIEs misleads DAVE LEWINSKI ports on Page 3, the festi- Projected art plays across the facade of the val was the brainchild of Editor: The original plan was to develop Detroit Public Library as part of the Your Oct. 8 story on the state of nine separate HIEs with unique Crain’s Detroit Business Mark Schwartz of Art Dlectricity light festival in Midtown. health information exchange in technology platforms in distinct welcomes letters to the editor. All letters will be considered for Detroit Now, who want- Michigan, “Data Disconnect,” was medical trading areas across the publication, provided they are ed to do the type of high-level event people might expect to find disappointing as it presented a state. At a minimum, the efforts signed and do not defame in New York or Paris. misleading picture of the work be- across Michigan since that time individuals or organizations. Schwartz’s collaboration with Midtown Detroit, the Kresge ing done here in Michigan and have significantly reduced this Letters may be edited for length Foundation and others produced a $600,000 budget and a plan. drew erroneous conclusions. number, providing a far more inte- and clarity. To suggest that Michigan’s plan grated experience for providers Detroit is building up an inventory of collaborative efforts Write: Editor, Crain’s Detroit to foster interconnected HIEs and their patients. like this that make a difference in the community. We can al- Business, 1155 Gratiot Ave., across the state “has gone awry” As the state’s largest HIE, Detroit, MI 48207-2997. ways use more of them, but this was a happening truly worth simply because there is competi- Email: [email protected] celebrating. tion in the market is absurd. See Letter, Page 9 KEITH CRAIN: They live in a world of their own making Recently someone did a survey From time to time, ed idea that they might Auto Workers head Bob King. and it will be four pages and re- of Detroit citizens and discovered whenever any moderate be kings of the city. Allegedly the two are in cahoots quire at least a law student to help that they would approve over- member of the Detroit It is very sad that to support each other’s ballot pro- in understanding all the options whelmingly the state of Michigan council tries to present only bankruptcy will posal. If Moroun funds more ads for all the choices. It is really con- taking over Belle Isle. For some a more moderate point eliminate the power for labor’s ballot initiative, then la- fusing at best and will take quite a unknown reason, the Detroit City of view, he or she quick- and put all the deci- bor will support Moroun’s ballot while to complete, so everyone Council has another point of view ly gets voted down. sions into the hands of a proposal at the same time. should expect a long wait at their that is intent on either blocking My guess is that if single person, perhaps I don’t know how much money local polling place. the deal or trying to renegotiate there were a City Coun- a federal judge. It is the UAW would be getting in We still have two more presiden- with the state until it gives up. cil election today, no rapidly heading that added support from Moroun, but I tial debates, and it’s still anyone’s I can hardly wait until these one on the present coun- way and appears to be do know that this so-called cooper- guess who we’re going to have for members of City Council have to cil would be re-elected. only a matter of time ation probably would do more our next president. Mitt Romney’s be elected by districts rather than Next year’s elections by district until the members of City Council harm than good for both sides. performance in the first debate at-large. Perhaps they will be more will be very interesting to watch. are out of work and power. It’s a very bad idea, and I must changed a lot of minds. If he re- in tune with the population rather Chances are, we’ll see a whole Meanwhile, it looks like Matty say that it has to have a lot of peo- peats this week and next, then it’s than simply fighting to prevent bunch of new leaders who will be Moroun is up to even more mis- ple very surprised and disappoint- fairly obvious we’ll elect a new any help from anyone and watch- representing their community chief. This time, sadly, his co-con- ed in the UAW. president. But that’s just one ing the city slide into bankruptcy. rather than having some misguid- spirator is none other than United I got a sample ballot last week, man’s opinion. 20121015-NEWS--0009-NAT-CCI-CD_-- 10/12/2012 11:39 AM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 9 MARY KRAMER: LaSorda could be highlight of summit

Will “Obamacare” reduce health LaSorda told us during an industry leader in provement initiatives. (See Jay care costs or accelerate them? a prep session for the containing cost in- CRAIN’S HEALTH CARE SUMMIT Greene’s story on her strategic Do we have too many hospitals? Oct. 30 event. “But not creases for health care When: 7:30 a.m.-2:30 p.m. Oct. 30 plan on Oct. 8 in Crain’s.) Will Southeast Michigan’s hospi- with health care.” under his watch to a Health care is an issue for all Where: San Marino Club, Troy tals go through a wave of consoli- Chrysler adopted a couple of points below employers. dation and restructuring because plan in 2007 for salaried the 7 or 8 percent in- Cost: Subscribers, $99; I suspect that LaSorda will rep- non-subscribers, $150; of “over-capaci- workers and salaried creases at his non-subscriber special, $125 and resent employers well when he ty?” retirees that required crosstown auto rivals. a 1-year subscription to Crain’s leads the discussion on Oct. 30. It How should higher-paid workers to In fact, it was LaSor- Detroit Business; $85 groups just might be the highlight of the employers plan pay more for health da who appointed a of 10 or more. day. for new federal care. cost accountant, Kate Register: crainsdetroit.com/events rules governing And there was waste Kohn-Parrott, to take Mary Kramer is publisher of employee health and fraud, compound- the lead on trying to ity perspective. Today, she is CEO Crain's Detroit Business. Catch her plans? Will they ing the cost issue. Un- manage the costs the of the Greater Detroit Area Health take on business news at 6:10 a.m. turn employees der LaSorda, Chrysler had a company paid for employee cover- Care Council, pushing the council Mondays on the Paul W. Smith show over to the new “fraud squad” to search out bogus age. to take more positions on health on WJR AM 760 and in her blog at state insurance claims. Kohn-Parrott learned about care issues and continue work on www.crainsdetroit.com/kramer. LaSorda exchange? He’s proud that Chrysler was health care from the cost and qual- cost reduction and quality im- E-mail her at [email protected]. Those are just some of the ques- tions we expect to address at our Oct. 30 health care summit. And the guy asking some of the questions will have the point of view of a frustrated CEO. With good reason. Tom LaSorda was a frustrated CEO at Chrysler in 2006, frustrated that health care costs weren’t behaving like other costs. “With any other supplier, I get the access to the cost structure,”

LETTER CONTINUED ■ From Page 8 Michigan Health Connect is deliv- ering the very solutions and value on a daily basis originally envi- sioned by Gov. Jennifer Granholm in the communities we serve. I know my colleagues in the other exchanges are striving to do likewise. In addition, the assertion that Michigan is behind other state ef- forts or that state-based HIEs are having more success around the country does not indicate an un- derstanding of the facts. Two of the three states your story holds up as shining examples of successful state-based HIEs, Indiana and Massachusetts, don’t even have a single state-based HIE serving their providers and are, in fact, fol- lowing a very similar model to that of Michigan. With regard to financial sustain- ability, both Tennessee and Kansas recently significantly re- duced and/or shuttered the opera- tions of their state-based HIE orga- nizations in large part due to an inability to define a viable sustain- ability model. These challenges are all too common for many state- based HIEs around the country. YOUR BUSINESS ISN’T JUST A JOB — IT’S A PASSION. Michigan Health Connect is pri- You get to know your vately sustained by its members customers, treat them fairly, and build relationships. Don’t you deserve that same kind and has ended every year of opera- tion in the black. of treatment from your bank? With Citizens Bank, you’ll get the right solutions and While there is more to do, I’m products from people with the experience to know what’s right. After all, we’ve been proud of the work being done in Michigan. The substate ex- around over 140 years, helping businesses just like yours grow. So if you want a bank changes have been meeting and that shares your passion, call us. BECAUSE WITH US, IT’S PERSONAL. collaborating for the past four years to do the right thing for Michigan. $)&$,*/(  4"7*/(4 r -0"/4  -*/&4 0' $3&%*5 r .&3$)"/5 4&37*$&4 We are leading the nation in 53&"463: ."/"(&.&/5 r 41&$*"-5: '*/"/$*/( r 8&"-5) ."/"(&.&/5 making real the vision of safe, ap- propriate exchange of health infor- mation in support of high-quality, more efficient health care for 1-800-946-2264 Michigan residents. CITIZENSBANKING.COM/BUSINESS Doug Dietzman Executive director Michigan Health Connect DBpageAD.qxp 4/18/2012 10:10 AM Page 1

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October 15, 2012 CRAIN’S DETROIT BUSINESS Page 11 Extra

fastest-growing companies Finding fertile soil

THE FASTEST GROWING Top-growing companies reap benefits amid The list of Fastest-Growing Companies on Page 12 is created by ranking the auto recovery, acquisitions, global expansions companies on Crain’s database of private and publicly traded companies in BY RYAN KELLY two ways: by dollar amount of SPECIAL TO CRAIN’S DETROIT BUSINESS revenue growth between 2009 and 2011 and by percentage hree big reasons get credit for revenue growth during that the rapid revenue rises of same period. The two T firms on Crain’s Fastest- rankings were added together Growing Companies list. to create the list; the lower Though each story is different the number, the higher the for the 25 companies on the list, final rank. Here are the companies: common themes emerged during vice president of sales, marketing with four acquisitions that near- ographic expansions were central interviews with company execu- and program management. ly tripled its $48 million revenue to several of Southeast Michi- 1. Inteva Products LLC, Troy tives: a boost from the automo- In 2009, there was a tremen- and expanded its reach into gan’s fastest-growing companies. tive industry’s recovery, large ac- dous amount of entrenchment by Chicago, west Michigan and 2. Innovation Ventures LLC, Globalization was a key to Farmington Hills quisitions and increased global suppliers, said David Bazzy, pres- parts of northern Indiana. growth for several companies on business. ident and COO of Dearborn-based Lakeshore Engineering Services the list. Some already had sites in 3. Gentherm Inc., Northville Kenwal Steel Corp. But companies Inc., a Detroit-based construction countries including China and 4. Chrysler Group LLC, Automotive recovery learned how to operate more effi- management, energy services Brazil prior to 2009. Others added Auburn Hills ciently and cut costs. and civil engineering firm, ac- locations during the three-year 5. Atlas Oil Co., Taylor At least half of the ranked com- Three-fourths of Kenwal’s busi- quired Maumee, Ohio-based period. panies are related to the automo- ness comes from the automotive TolTest Inc. The deal added $200 6. Grede Holdings LLC, Either way, the growth abroad Southfield tive industry, and several credited industry. Kenwal ranked 12th on million to Lakeshore’s annual allowed local businesses burned the industry’s recovery as a sig- the Crain’s list. revenue base. The company was by the U.S. recession to balance 7. Lakeshore TolTest Corp., nificant reason for their growth. “Those of us who have come ranked seventh on Crain’s list. Detroit out their losses. Being prepared for the upturn out are smarter,” Bazzy said. “It “We used China to bridge us 8. BorgWarner Inc., Auburn also mattered. was about managing our business during the downturn,” said Sat- Hills Geographic expansion “The biggest thing for us that cycle.” urn’s Peseski. The company also 9. American Axle & led to the growth,” said Frank To reach fresh markets, ge- expanded into Mexico with two Manufacturing Holdings Buscemi, spokesperson for No. 10- new locations. Inc., Detroit Acquisitions ranked TI Automotive Ltd., “is that No. 8-ranked BorgWarner Inc. 10. TI Automotive Ltd., the auto industry had a rebound.” Acquisi- set up shop in China in 1993, Auburn Hills The benefits to suppliers like tions were and by 2009 China was its 11. Vision Information TI Automotive weren’t automat- largely re- fastest-growing market. Technologies Inc., Detroit ic. Several of the companies that sponsible “We were primed to go pointed to the rebound also said for the 12. Kenwal Steel Corp., when the (Chinese) market that being prepared was crucial. growth of Dearborn took off in the mid-2000s,” Companies learned to diversity two of the said CEO Tim Manganello, 12. Piston Automotive LLC, product lines and more aggres- top five com- Redford and in 2009 BorgWarner “eked sively push for sales. panies on out a profit” because of its po- 14. Saturn Electronics & For instance, Lon Offenbacher, the list: sition there. Engineering Inc., CEO of No. 1-ranked Inteva Prod- Gen- No. 24-ranked Meritor Inc. also Rochester Hills ucts LLC, a Troy-based interiors therm fed China’s enormous infra- supplier, said that Inteva was Inc. and 15. Aristeo Construction Co., structure growth needs during Livonia able to take advantage of growing Inteva. that period, supplying axles and markets like China, India and No. 3-ranked 16. SET Enterprises Inc., drivetrain technology for earth Brazil by being well-positioned Gentherm ac- Warren moving equipment, such as bull- there ahead of time. (See related quired W.E.T. Auto- 17. Rofin-Sinar Technologies dozers. story, Page 13.) motive Systems AG, an Inc., Plymouth In Brazil, Meritor’s sales of “You’re seeing a growth in lux- Odelzhausen, Ger- axles also ramped up from 2009 to 18. The Ideal Group Inc., ury midsize vehicles in markets many-based climate-controlled Detroit 2011. that previously were happy to see systems manufacturer and gained The global economic opportuni- 18. Key Plastics LLC, cars,” he said. manufacturing plants in Malta, Northville Saturn Electronics & Engineering Hungary, China and Mexico. The ties cross into nonautomotive Those of us work, too. The combined and re- 20. Alta Equipment Co., Inc., which derives at least 70 per- purchase was responsible for $237 “ Wixom cent of its business from the auto million of Gentherm’s $308.7 mil- named Lakeshore TolTest Corp. ben- who (came) out efited from an unusual type of 21. Metaldyne LLC, Plymouth industry, began working for the lion revenue growth during the first time with new segments of three-year time period. (See relat- global growth: construction ef- 22. Roush Enterprises, (of the recession) the industry, such as tier-one ed story, Page 14.) forts by the American military Livonia suppliers, during the economic Inteva, meanwhile, acquired are smarter. It and development by oil compa- 23. Active Aero Group downturn. The Rochester Hills- ArvinMeritor Inc.’s light vehicle nies in Iraq and Afghanistan, said Holdings LLC, Belleville based company, which ranks body systems unit in January was about Andrew Haliw, executive vice 24. Meritor Inc., Troy 14th on the list, also launched a 2011 and more than doubled its president, secretary and general counsel. 25. General Motors Co., new product in 2009 called an au- business. The $27 million deal managing our Detroit tomatic transmission solenoid also expanded Inteva’s global Lakeshore won contracts with that helps engines lower fuel reach. business cycle. oil companies to build structures emissions. The new product Similarly, Alta Equipment Co., a ” in Iraq and assignments from the helped boost Saturn’s sales Wixom-based forklift dealer that David Bazzy, U.S. military to build infrastruc- through 2011, said Bill Peseski, ranks 20th on the list, closed 2009 Kenwal Steel Corp. ture in Afghanistan. 20121015-NEWS--0012-NAT-CCI-CD_-- 10/12/2012 11:38 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS October 15, 2012

CRAIN'S LIST: FASTEST-GROWING COMPANIES By combined revenue growth rankings, 2009-2011

Combined Company revenue Revenue Revenue 3-year Revenue Revenue Address growth ($000,000) % change % change growth growth Rank Phone; website Top executive(s) rankings 2011/2009 2011-2009 ranking 2011-2009 ranking Reason for increase Inteva Products LLC Lon Offenbacher 15 $2,800.0 180% 5 $1,800.0 10 Acquired Meritor Inc.'s light vehicle body systems in January 2011. 1. 1401 Crooks Road, Troy 48084 president and CEO $1,000.0 (248) 655-8886; www.intevaproducts.com Innovation Ventures LLC Manoj Bhargava 32 1,200.0 140 9 700.0 23 Customer loyalty, expanded product line, partnership with AVON Foundation 2. 38955 Hills Tech Drive , Farmington Hills 48331 CEO 500.0 and Operation Gratitude (248) 960-1700; www.5hourenergy.com Gentherm Inc. Daniel Coker 34 369.6 507 1 308.7 33 Acquisition of a majority interest in W.E.T. Automotive Systems AG; new 3. 21680 Haggerty Road, Suite 101, Northville 48167 president and CEO 60.9 vehicle program launches of Gentherm’s climate control seat system and (248) 504-0500; www.amerigon.com expansion of programs into new regions Chrysler Group LLC Sergio Marchionne 36 54,981.0 91 34 26,189.0 2 Alliance with Fiat S.p.A.; quality efforts by employees; launched 18 new or 4. 1000 Chrysler Drive, Auburn Hills 48326-2766 chairman and CEO 28,792.0 B significantly refreshed vehicles through 2011 (248) 576-5741; www.chryslergroupllc.com Atlas Oil Co. Sam Simon 37 2,293.7 112 22 1,212.5 15 Growth in retail due to acquisitions and organic growth in commercial 5. 24501 Ecorse Road, Taylor 48180 chairman and CEO 1,081.2 business; expanded into transloading crude oil, ethanol and biofuels products (800) 878-2000; www.atlasoil.com in New Mexico, Texas Grede Holdings LLC Douglas Grimm 46 996.0 116 21 534.0 25 Strategic acquisitions, improving market, winning new business, adding new 6. 4000 Town Center, Suite 500, Southfield 48075 chairman, president 462.0 markets, growth overseas (248) 440-9500; www.grede.com and CEO Lakeshore TolTest Corp. Avinash Rachmale 47 570.0 128 15 320.0 32 Won multiple contracts for projects in conflict zones of Iraq and Afhganistan; 7. 7310 Woodward Ave., Suite 500, Detroit 48202 president and CEO 250.0 C acquired Ohio-based Toltest Corp.; had a growing number of construction (313) 875-4115; www.lakeshoretoltest.com contracts with international oil companies BorgWarner Inc. Timothy Manganello 49 7,114.7 80 41 3,152.9 8 Investment in technology, global expansion/Chinese and European growth, fuel 8. 3850 Hamlin Road, Auburn Hills 48326 chairman and CEO 3,961.8 economy and lower emission technology, automotive recovery (248) 754-9200; www.borgwarner.com American Axle & Manufacturing David Dauch 70 2,585.0 70 52 1,063.4 18 Launching of new facilities in Thailand, India and Sweden, in addition to Holdings Inc. president and CEO 1,521.6 facilities in Michigan, China and Brazil that have earned new business 9. One Dauch Drive, Detroit 48211 (313) 758-2000; www.aam.com TI Automotive Ltd. Bill Kozyra 72 3,000.0 67 56 1,200.0 16 Increased automotive production and additional new contracts 10. 1272 Doris Road, Auburn Hills 48326 chairman, president 1,800.0 (248) 494-5000; www.tiautomotive.com and CEO Vision Information Technologies Inc. David Segura 73 239.0 137 11 138.0 62 Added top executives from major Fortune 200 companies; operations in (VisionIT) CEO 101.0 Detroit, the U.S. and Latin America form the foundation for innovation, 11. 3031 W. Grand Blvd., Suite 600, Detroit 48202 Christine Rice evolution and expansion within customer base (877) 768-7222; www.visionit.com president Kenwal Steel Corp. Kenneth Eisenberg 78 885.3 73 50 372.5 28 Automotive recovery and growth with current customers 12. 8223 W. Warren Ave., Dearborn 48126 chairman and CEO 512.8 (313) 739-1000; www.kenwal.com Piston Automotive LLC Vincent Johnson 78 473.8 91 33 226.0 45 Became a NetApp authorized reseller and began offering the NetApp service in 12. 12723 Telegraph Road, Redford 48239 chairman 247.8 February 2011 to Ford Motor Co. (313) 541-8674; www.pistongroup.com Saturn Electronics & Engineering Inc. Wallace Tsuha 79 289.6 104 23 148.0 56 Ramped up to production levels on a new solenoid program launched in 2009; 14. 2120 Austin Ave., Rochester Hills 48309 chairman 141.6 North American volume recovery (248) 853-5724; www.saturnee.com Aristeo Construction Co. Joseph Aristeo 87 227.0 120 19 124.0 68 Growth in automotive business and continued diversification into energy and 15. 12811 Farmington Road, Livonia 48150 president 103.0 petrochemical industries (734) 427-9111; www.aristeo.com SET Enterprises Inc. Sid Taylor 89 330.0 93 32 159.0 57 New customers as a result of competitors going out of business, positioned in 16. 30500 Van Dyke Ave., Suite 701, Warren 48093 chairman 171.0 multiple markets, expansion into Southern U.S. markets (586) 573-3600; www.setenterprises.com Rofin-Sinar Technologies Inc. Guenther Braun 92 597.8 71 51 248.2 41 Supported by the machine tool, consumer electronics, medical device and 40984 Concept Drive, Plymouth 48170 president and CEO 349.6 semiconductor industries and good business levels in Asian countries; benefited 17. (734) 455-5400; www.rofin.com from previous investments in an excellent sales and service network in this region; acquired LASAG AG as a wholly owned subsidiary in 2010 The Ideal Group Inc. Frank Venegas Jr. 93 200.0 123 17 110.2 76 Focus on diversification 18. 2525 Clark St., Detroit 48209 chairman and CEO 89.8 (313) 849-0000 Key Plastics LLC Terry Gohl 93 615.0 68 53 250.0 40 Acquired certain assets of OHLO Group and Paulmann & Crone in 2010 18. 21700 Haggerty Road, Suite 150N, Northville 48167 CEO 365.0 (248) 449-6100; www.keyplastics.com Alta Equipment Co. Steven Greenawalt 94 137.0 185 4 89.0 90 Acquisitions of competitive dealerships; expanding into new territory in Indiana 20. 28775 Beck Road, Wixom 48393 CEO 48.0 and Illinois; expanding the product portfolio to include specialty products in a (248) 449-6700; www.altaequipment.com new construction equipment division Metaldyne LLC Thomas Amato 95 1,000.0 59 66 370.0 29 Repositioned focus on core product and process technology to support fuel- 47659 Halyard Drive, Plymouth 48170 president and CEO 630.0 efficient automotive powertrains; re-launched and re-positioned facility in 21. (734) 207-6200; www.metaldyne.com China; purchased and launched new facility in the Czech Republic; added value to products by performing more manufacturing steps, such as machining and assembly, before shipping to customers Roush Enterprises D Evan Lyall 96 305.1 89 35 143.6 61 Diversified into strategic markets such as oil and gas, aerospace, and theme 22. 12447 Levan, Livonia 48150 CEO 161.5 park development; tremendous growth in Roush CleanTech (800) 215-9658; www.roush.com Active Aero Group Holdings LLC David Schembri 97 230.0 102 25 116.0 72 Continued growth of automotive-related cargo clients requiring the full use of 2068 E St., Belleville 48111 CEO 114.0 resources to ship "on demand" critical parts to support the uninterrupted 23. (734) 547-7200; www.activeaero.com; production of automobiles www.usajetairlines.com Meritor Inc. Charles "Chip" 99 4,622.0 50 87 1,547.0 12 Growth in Brazil and China; new contracts from the U.S. Department of 2135 W. Maple Road, Troy 48084 McClure Jr. 3,075.0 Defense for tactical wheel programs; improvements in the manufacturing 24. (248) 435-1000; www.meritor.com chairman, president processes; growth in the commercial truck market and CEO General Motors Co. Daniel Akerson 100 150,300.0 44 99 45,711.0 1 Recovering North American auto market 25. 300 Renaissance Center, Detroit 48265 chairman and CEO 104,589.0 E (313) 556-5000; www.gm.com

This list of fastest-growing companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties is based on a minimum 2009 revenue of $10 million. Fastest growing is a measurement of revenue growth and does not denote whether a company is profitable. It is not a complete listing but the most comprehensive available. Crain's estimates are based on industry analysis and benchmarks, news reports and a wide range of other sources. Unless otherwise noted, information was provided by the companies. Companies with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. Actual revenue figures may vary. NA = not available. B Chrysler Group L.L.C. posted $17.71 billion in revenue from its June 10 exit from Chapter 11 bankruptcy through Dec. 31, 2009. Its predecessor, Chrysler L.L.C., owned by Cerberus Capital Management L.P., reported $11.08 billion in 2009 revenue before emerging from Chapter 11. C Company estimate. D Figures do not include motorsports employee counts or revenue of Roush Fenway. E General Motors Co. posted $57.474 billion in revenue during the period beginning when it emerged from Chapter 11 bankruptcy on July 10 through the end of 2009. Its predecessor, Motors Liquidation Co., posted revenue of $47.115 billion from Jan. 1, 2009, through July 9. LIST RESEARCHED BY BRIANNA REILLY 20121015-NEWS--0013-NAT-CCI-CD_-- 10/12/2012 10:39 AM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 13 Second Stage Extra: Fastest-Growing Companies Why Should They Trust YOU?

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BY RYAN KELLY ny was the January 2011 acquisi- (that) you can lead technology, but SPECIAL TO CRAIN’S DETROIT BUSINESS tion of Detroit-based interior parts you have to be pretty close to your ® maker ArvinMeritor Inc., now customer to make sure you don’t n 2008, Delphi Corp. declared Meritor Inc., which nearly doubled develop something that is 10 years Start With Trust bankruptcy, and its global inte- Inteva’s revenue and number of ahead of its time. … You end up I riors and closures unit was global locations. Sales jumped with a great piece of technology bought by New York City-based from $1.2 billion to $2.5 billion. sitting on a shelf.” Join the Better Business Bureau holding company Renco Group Inc. To maintain its spot as a leading A global presence was also a key Serving Eastern Michigan and the Upper Peninsula for $106 million. supplier of such products as door to the company’s success. The unit, headed by Lon Offen- and hood latches, door handles, con- Inteva had one plant in China For more information: bacher, became Troy-based soles and glove boxes, Inte- that it carried over from its days as bbb.org or 248-223-9400 Inteva Products LLC, and Of- va focused heavily on cus- a Delphi unit. It has other sites in fenbacher became its presi- tomer relationships. Mexico, Canada, Germany, South dent and CEO. It had a book NO. 1 The key to maintaining Korea and China. of business and teams in those relationships has place, so when the auto in- INTEVA been open and consistent dustry rebounded in the en- communication with its suing years, the company PRODUCTS customers, Offenbacher was ready. said, which allows Inteva Since then, it has further to meet and anticipate cus- grown by a large acquisition and tomers’ needs. by working closely with clients to Offenbacher stresses in-person anticipate contract needs. meetings between Inteva’s sales From 2009 to 2011, Inteva grew teams and its customers. To en- its revenue from $1 billion to courage personal relationships, In- $2.8 billion and expanded its opera- teva will post sales and account tions, including plants and offices, representatives in the regions of to 42 locations. all its customers. A game-changer for the compa- “We’ve learned in this industry

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Page 14 CRAIN’S DETROIT BUSINESS October 15, 2012 Second Stage Extra: Fastest-Growing Companies

ONE HU G ND IN R T E A D R Y B E

E A

L R

E S

C 100 Reaching $100 million in revenue was a turning point for auto supplier Gentherm Inc., says President and CEO Daniel Coker. Revenue hit $369.6 million in 2011. KENNY CORBIN Gentherm: Acquisition, uptick in industry

BY RYAN KELLY Odelzhausen, Germany-based were launched in 2010, and sales SPECIAL TO CRAIN’S DETROIT BUSINESS W.E.T. Automotive Systems AG in picked up for vehicles already on February 2011, was an important the market, such as the Ford Tau- entherm Inc., formerly part of the company’s growth. rus, Infiniti G convertible, and Nis- Amerigon Inc., grew its rev- Gentherm acquired 75.6 percent san 370Z roadster. G enue from $60.9 mil- of W.E.T.’s publicly traded To continue its growth during the lion to $369.6 million — an voting shares at $55 each, uptick in the automotive market, increase of more than 500 NO. 3 totaling about $126.4 mil- Gentherm decided to become a man- percent — from 2009 to lion. ufacturing company using the re- 2011. From 2009 to 2010, Gen- sources it gained by acquisition. 00 The Northville company GENTHERM therm’s sales grew by $51.5 “When we reached that level of SAVE $100 OFF attributes the gains to a million to $112.4 million, $100 million,” said Daniel Coker, large acquisition and the primarily the result of a president and CEO, “we had in the overall uptick in the automotive much-improved automotive mar- back of our mind, what happens in industry. ketplace, according to a February our future?” Gentherm, a supplier of climate 2011 10K filing with the U.S. Securi- The purchase of W.E.T. allowed it control seat components and heat- ties and Exchange Commission. to shift the manufacturing in- ing, ventilation and air-condition- New vehicles including the Ford house; it gained active plants in ing units, said the acquisition, of F250, Kia Optima and Kia Sonata Malta, Hungary, China and Mexico. 5-Hour Energy maker: A great CPA Counter space, new flavor BY RYAN KELLY nail. Once he had SPECIAL TO CRAIN’S DETROIT BUSINESS it, it wasn’t as doesn’t just retire. NO. 2 tough to hold as nnovation Ventures LLC, the mak- sales skyrocketed. er of 5-Hour Energy drinks, in- From 2009 to I creased its revenue of $500 mil- INNOVATION 2011, 5-Hour Ener- Consider Paul Carter, a senior manager at lion in 2009 to $1.2 billion in 2011. VENTURES gy didn’t do any- ShindelRock. A few years ago, Paul was The Farmington Hills-based thing complicat- company sold ed. It added one looking for a place to close out a successful nine million bot- flavor, grape, after repeated de- career. At ShindelRock, he stays active in tles per week in mands from customers. his clients’ affairs on a schedule that works 2011, up from Another slam dunk for the com- seven million pany was the sizing of the energy for him. bottles per week drink. The decision to go small in 2010. wasn’t complicated, Bhargava said At ShindelRock, we offer a well-managed One of its big during a keynote speech at Crain’s practice with all the infrastructure you success secrets? Salute to Entrepreneurs confer- Simplicity in ence in June. need to continue serving your clients. decision-mak- Bhargava He simply thought the energy Because slowing down doesn’t have to ing. drinks on the market previous to 5- mean retiring. “I use a technical term,” said Hour were too big. Manoj Bhargava in a February in- He didn’t think consumers terview with Crain’s. “Is it a slam wanted to fill up from drinking a dunk? It’s as simple as that. It large can of liquid. doesn’t take an MBA to figure out Bhargava also told the group of if it’s a slam dunk or not. In fact, metro Detroit entrepreneurs gath- an MBA can be harmful to the ered at the conference that a large Contact for Inquiries process by trying to make it too part of success comes through un- Maria Montie, CPA, MST, CVA, CFFA complicated.” derstanding human nature — a Managing Partner Bhargava and his team had a philosophy that has helped him few slam dunks in recent years. outfight competitors and win new www.ShindelRock.com | 248.855.8833 One was securing counter space customers. 28100 Cabot Drive Ste. 102 | Novi, MI 48377 at gas stations and convenience “You think you read a book and stores for the energy shots, space know stuff?” he said at the event. that Bhargava fought for tooth and “No, not really.” 20121015-NEWS--0015-NAT-CCI-CD_-- 10/11/2012 4:45 PM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 15 Second Stage Extra: Fastest-Growing Companies Chrysler Group: Alliance with Fiat, better fuel economy, culture shift

BY RYAN KELLY Chrysler. gallon. Today it has six. The marketing campaign “Im- Chrysler. SPECIAL TO CRAIN’S DETROIT BUSINESS Reid Bigland, A large part of the increase ported From Detroit” put the new The final piece of the puzzle was Chrysler’s head came from Fiat’s technology in Chrysler back on the map, Bigland the culture change brought about ince bankruptcy and gov- of U.S. sales, at- fuel efficiency. And Fiat’s distrib- said. by Marchionne — defined as a cul- ernment bailout, Chrysler tributes the ution network gave Chrysler a big The 2010 Super Bowl ad for the ture of hard work, humility and S Group LLC has made strides turnaround to leg up, Bigland said. Prior to Fiat, Chrysler 300, featuring Eminem’s merit, Bigland said. on the revitalization of its brand five big changes Chrysler did not have a network hit “8 Mile,” “cut through the clut- “We’ve been through a lot,” and its balance sheet. at the company: in Europe, but the Italian au- ter of automotive advertising at Bigland added. Marchionne’s style Since exiting Chapter 11 in June redesigned inte- tomaker has helped open up mar- that time,” he said. reminded Chrysler’s employees to 2009, Chrysler has invested $23 bil- riors, improve- kets in Europe and South Ameri- The advertising campaign “keep our heads down, stay fo- lion into reinventing its product Bigland ments in fuel ca, he said. helped drive double-digit sales for cused and work hard.” line and launched 16 new vehicles economy, the within 18 months. new distribution network gained The move has from Fiat’s interest, a culture shift NO. 4 paid off as its rev- initiated by CEO Sergio Mar- enue grew by $26.2 chionne and effective marketing billion from 2009 campaigns. CHRYSLER through 2011. The vehicle interiors Chrysler In 2009, produced before 2009 were based GROUP Chrysler entered on saving pennies, he said, noting, into bankruptcy “We had a lot of cheap plastics.” protection with As part of its new growth effort, Italian automaker Fiat SpA waiting Chrysler would unchain its de- in the wings to take it over. The signers and commit more of its re- third-largest automaker emerged sources to interiors. from the bankruptcy in June 2009 “All along, we’ve had the great- but didn’t earn a profit until 2011. est designers in the world working Chrysler borrowed $12.5 billion for us,” he said. “They’ve just been from the U.S. government before strait-jacketed.” Fiat diluted the U.S. Treasury’s The improvements in fuel econ- stake in the automaker by acquir- omy were crucial to the carmak- ing nearly all of its shares. Fiat er’s growth. In 2009, it had no vehi- currently owns 58.5 percent of cles with better than 31 miles per THANK YOU! As we celebrate our centennial anniversary, we are grateful for the valued Atlas Oil: Growing client roster, independent agents and customers who have supported our success. For the next 100 years, our pledge is to remain committed to our agents new facilities near top refiners while continuing to provide best-in-class claims service and unparalleled WorkSafe tools to our customers. BY RYAN KELLY (fewer) customers,” he said. SPECIAL TO CRAIN’S DETROIT BUSINESS Atlas, which supplies fuel to gas stations in Michigan, Indiana, Illi- To learn more about Accident Fund and the tools we offer to make your tlas Oil Co. expanded its nois and Ohio, added new clients business pipeline for fuel to the retail side of its business, workplace safe, visit AccidentFund.com/WorkSafe. A sales and fuel logistics by Kenyon said, and grew its busi- adding transloading capability, ness buying and selling distressed growing its retail business and gas stations. landing new contracts. 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October 15, 2012 CRAIN’S DETROIT BUSINESS Page 17

A CONVERSATION WITH

Ken Altshuler, American Academy of Matrimonial Lawyers Family Law

Relationships can get messy. And that’s not limited to married couples, either. Unmarried couples are seeking legal protections similar to those of married couples through cohabitation agreements — a Recovery reaches prenup of sorts, says the American Academy of Matrimonial Lawyers. Cohabitation agreements protect each person’s assets, address the child custody issues of unwed couples and set guidelines for other roommate-like factors. Splitsville In a poll conducted by the AAML in 2011, 39 percent of the divorce attorneys surveyed pointed to an increase in cohabitation

agreements over the previous five JEFF JOHNSTON/CDB years. Crain’s reporter Dustin Comeback in jobs and housing People are Walsh chatted via email with AAML “ President Ken Altshuler on the rise getting of cohabitation agreements and how couples are drafting the puts sidelined divorces back to documentation. What exactly is a cohabitation work, and agreement? A cohabitation agreement is an agreement back on track viable for couples, they’re between adults who wish to define Cavellier said. their rights and obligations by Metro Detroit home filing those sharing a living space together, as prices rose 6.2 percent in well as all of the responsibilities July from July 2011 and have divorces with having this joint personal and climbed for 13 straight months, financial arrangement. according to the Standard & they haven’t filed The interest in these agreements Poor’s/Case-Shiller index re- is increasing. Why? This is very over the last three to BY DUSTIN WALSH of the divorcing couple’s home leased last month. For the year prevalent among same-sex CRAIN’S DETROIT BUSINESS to cover legal costs. to date, home sales are up 9 per- partners, particularly in the states four years. A national survey conducted cent in Oakland, Macomb and that don’t recognize gay marriage. ” he recession left many last month by the Chicago- Wayne counties, Farmington Where the law does not define the Gerry Cavellier, Hertz Schram PC rights and responsibilities of a unhappily married cou- based American Academy of Mat- Hills-based Realcomp II Ltd. re- couple upon the dissolution of ples wondering whether rimonial Lawyers found that over ported last month. their relationship, they need to T divorce was an option — the past three years, 85 percent “People are getting back to lies and lawyers.” contract in advance what will financially. Now, in a recover- of respondents had divorce set- work, and they’re filing those Said Lichterman: “We didn’t happen upon a breakup or a death. ing economy, family law attor- tlement complications because divorces they haven’t filed have a crystal ball, and a lot of What types of stipulations are neys say clients waiting for di- of housing debt. over the last three to four couples who wanted divorce often included in these vorce should move quickly to But the slight bounce-back of years,” Cavellier said. “The re- ended up living together and agreements? A cohabitation capitalize on reduced assets the Southeast Michigan hous- turning equity in many, many agreement can basically cover and consider new ways to set- ing market now makes divorce homes is a good thing for fami- See Divorce, Page 18 everything that a married couple tle. would need to decide if getting During the recession, di- divorced. There is no limit, so long vorce in Michigan declined be- as it doesn’t violate public policy. cause of the high legal fees and (Example: A contract for sex in diminishing incomes, home exchange for money would be values and investments, local prostitution and, therefore, illegal.) lawyers say. Divorces dropped Typically, it spells out what to 32,711 in 2009 from 35,022 in happens to real estate if held 2006, according to the Michigan jointly, as well as any personal Department of Community Health. property of significant value. The all-time high was 45,047 di- What challenge do these vorces in 1980. agreements pose to lawyers? The Susan Lichterman, a partner agreements must be fair, must not and chairwoman of the family be coerced, and there must be full law group at Southfield-based disclosure by both parties as to all Jaffe Raitt Heuer & Weiss PC, said of their assets and obligations. rising home values and recov- The challenge to lawyers is to ering retirement accounts are ensure full disclosure and sufficient time before signing to triggering the return of divorce allow both parties to consult for her firm. Clients now can attorneys and air out all concerns. afford to get a divorce, she said. “I’m busier than in the past Do you expect this trend to continue? I expect it to increase. few years as the housing mar- Couples are waiting longer to get ket starts to come back,” she married, but when they start said. “If you’re looking at di- accumulating assets, they want an vorce from an overall business agreement that defines what transaction — which it never is belongs to whom. Also, until same- — now may be the time to see a sex marriage is commonplace, it lawyer.” will be the only method by which a Gerry Cavellier, a partner at same-sex couple can define their Bloomfield Hills-based Hertz GLENN TRIEST rights and responsibilities. Schram PC, said that in many An improving economy means divorce filings are piling up for Susan Lichterman, chairwoman of the family law group cases, lawyers rely on the sale at Jaffe Raitt Heuer & Weiss PC in Southfield. 20121015-NEWS--0018-NAT-CCI-CD_-- 10/11/2012 4:32 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS October 15, 2012 Focus: Family Law Divorce: In recovery ■ From Page 17 were miserable. Now, your busi- it’s a new trend as lawyers look for ness and income are still worth alternatives to traditional divorce less but recovering, and you don’t procedures.” want to pay more or lock yourself Roane said couples also increas- into terms that a few years down ingly seek amicable divorces free the road might not be doable.” of courtroom drama and long, But recent di- court-led delays vorce cases are by using alterna- becoming more Courts’ caseloads tive dispute reso- complex because “ lution — which of cultural and continue to rise and encompasses me- societal changes, diation, arbitra- including more force lawyers ... to tion and the use of women in higher- collaborative law. paid professions, resolve cases “Courts’ case- said Nazli Sater, loads continue to Every lawyer must pass the bar. a partner at without waiting for rise and force Southfield-based lawyers — Ours go on to raise it. Warner Norcross & time in court. through creativi- Judd LLP. ” ty, court rules and “Family law is Ric Roane, Warner Norcross statutes — to re- evolving because solve cases with- Wayne Law offers students a strong and comprehensive legal we have more women than ever in out waiting for time in court,” he education. Our student-focused faculty members are dedicated managerial, executive and other said. “It’s beneficial to us and pro- corporate positions,” she said. vides privacy for the clients.” to providing you with the skills you need to resolve complex “There are now two sometimes Whether through mediation, ar- legal issues with creative solutions. It’s no wonder our alumni larger incomes contributing to the bitration or collaborative law, the pot, and spousal support may be- go on to make significant contributions in their communities divorcing couple negotiate the di- AIM HIGHER come a moot issue or a more com- vorce settlement. and beyond. Join our prestigious community of top attorneys, plex issue.” In mediation, a neutral third judges and leaders. Visit law.wayne.edu or contact our In 2011, women comprised 51.4 party helps negotiate but has no percent of management, profes- power to make decisions. Admissions Office at (313) 577-3937. sional and related positions, ac- The use of an arbitrator is simi- cording to the U.S. Bureau of Labor lar to a traditional divorce in the Statistics. court system, where the third par- Sater also said more men than ty makes a final ruling, but in pri- Learn more at law.wayne.edu or us on Facebook at facebook.com/WayneStateLawSchool in the past are fighting for equal vate. child custody rights. In collaborative law, the two Ric Roane, president of the parties hire lawyers or other prac- Michigan Chapter of the American titioners certified in the process to Academy of Matrimonial Lawyers and chairman of the family law prac- negotiate a settlement. If an agree- tice at Warner Norcross, said the ment is not reached, the husband loss of home equity has forced and wife must hire separate lawyers to come up with creative lawyers to go to trial. ways to guarantee a divorcing par- “When a case is resolved in ty financial security. court, oftentimes the husband and More lawyers, Roane said, also wife are both unhappy with the re- use what are known as indemnity sult,” Roane said. qualified domestic relations or- “In mediation or collaborative ders as a way to legally divide un- practice, they at least reach the paid pension benefits between di- point of ‘Yes, this is the deal I can vorcing spouses. live with,’ ” he said. “It allows you “An indemnity QDRO is a way to maintain control of your deci- to provide additional security to sion.” the unentitled spouse without vio- Dustin Walsh: (313) 446-6042, lating federal laws,” Roane said. [email protected]. Twitter: “It’s not widely known or used, but @dustinpwalsh

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October 15, 2012 CRAIN’S DETROIT BUSINESS Page 19 Second Stage Extra Prenups are up: More later-life marriages, more wealthy women

BY DUSTIN WALSH eration clients,” Nichols said she instructs ways better for the couple to come CRAIN’S DETROIT BUSINESS Lichterman said. clients to mediate a prenup in cas- up with their own solution that “Parents who are Discussing these es where a parent pushes the legal will work for them and satisfy Prenuptial agreements are in- self-made and “ contract. She called traditional their parents.” creasing, local lawyers say, as the worked hard for issues ... can make prenups drafted by a corporate law Also, Nichols said: “A prenup demographics and economics of their wealth gener- firm “draconian,” protecting only does not necessarily mean that the getting married evolve. ally do not want the future less one person. less-wealthy spouse walks away Several factors account for the see a portion of it “I understand the parents don’t with nothing. Often, prenups do rise in prenups, including an in- end up in the fraught. want their business enterprise to include property settlements or crease in the median age of cou- hands of an ex- ” end up in the hands of the disgrun- spousal support provisions based ples getting married, an increase Margaret Nichols, Nichols, Sacks daughter- or son- tled spouse of their child,” Nichols on the length of marriage at set in successful women seeking the in-law, especially if they question to be inherited over the next 50 said. amounts.” agreements and more parents of the compatibility of the couple years — the largest transfer of “But I like to get a third party in Dustin Walsh: (313) 446-6042, the married couples concerned from the beginning.” wealth in U.S. history, according the room, where they can discuss [email protected]. Twitter: with inheritance and family Roughly $20 trillion is expected to a March report in USA Today. mom and dad’s concerns. It’s al- @dustinpwalsh wealth. Couples get married later in life, and with that comes the nuances of advancing careers, home owner- ship, 401(k)s and other invest- ments. The median age of women mar- rying for the first time was 20.6 in 1970, 23.7 in 1988 and 26.5 in 2009, according to the U.S. Census Bur- eau. For men, the median age of a Expected first-time marriage was 22.5 in 1970, 25.5 in 1988 and 28.4 in 2009. Margaret Nichols, a partner in Sweaty weight the Ann Arbor family law practice of Nichols, Sacks, Slank, Sendelbach & Buiteweg PC, said that when mar- room guy. rying couples are a bit older, they recognize their wealth I am potential “ and the “re- Unexpected representing alities of marriage.” more women Susan Lichterman, Rewards for getting who insist a partner and chair- on the woman of and staying healthy. the family prenup. law group at ” Southfield- Susan Lichterman, based Jaffe The local gym may have its drawbacks, but it’s worth it. Our HealthbyChoiceSM Jaffe Raitt Raitt Heuer & plans reward good health with lower out-of-pocket costs. Consider it the Weiss PC, safe-driver’s discount for the body. said she has seen an increase in women seeking prenups, especially those entering into a second mar- Healthy, productive employees—It’s one more way riage. “I am representing more women Priority Health is Meeting your unexpectations. who insist on the prenup, as there are more successful working women with independent wealth than in previous generations,” she said. In many cases, Nichols said, the financial differences between a married couple lead to divorce. “We always hear about infideli- ty, abuse, et cetera. But there are all kinds of ways their financial lives get in the way of their person- al connection or intimacy, … and possibly that is what leads to infi- delity or something worse,” she said. In some cases, Nichols said, a couple discussing their assets in advance clears the way for a healthier marriage. “Finding out your future spouse has $30,000 in credit card debt may give you some cause for pause,” she said. “Discussing these issues, being transparent, getting togeth- er can make the future less fraught.” Lichterman said that in many cases, the parents of either the husband or wife are pressuring their child to enter into a prenup to protect inheritance, family wealth or a business. “I’m getting a lot of second-gen- 20121015-NEWS--0020-NAT-CCI-CD_-- 10/11/2012 4:45 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS October 15, 2012

Deal to make Dearborn Hyatt a Radisson hotel falls through

Carlson Rezidor Hotel Group will not be operating the Dearborn Hyatt Regency after all. The planned deal to make the hotel a Radisson loca- tion has unraveled. Minnesota-based Carlson signed a long-term management contract two weeks ago with the hotel’s owner, overseas investment group Royal Realties LLC, to operate the hotel as of Nov. 1. It’s unclear which party pulled out of the deal first. Carlson declined any comment beyond confirming that the two parties have agreed to terminate their agreement for management of the hotel and operation of it un- der the Radisson banner. Charles Taylor, representative for Royal Realties, declined to comment on the reasons the agree- ment fell through. Get precisely the global resources you need There was an agreement with Carlson to operate the hotel under Today, middle market companies are looking to foreign countries for growth. At Deloitte Growth Enterprise Services, we offer the Radisson banner, “but the two clients global resources sized to their needs. Whether that’s to get a firm grasp of tax implications, a thorough real estate valuation, parties didn’t completely agree audits to achieve regulatory compliance, or all of the above. with each other at that time,” Tay- lor said. The owner is in conversation To learn more about Deloitte Growth Enterprise Services and its customized offerings for mid-market and privately held companies, with other potential operators for contact Mark Davidoff at +1 313 396 3000 or email us at [email protected] the hotel. “The property has been here a Gain insight with Perspectives, our series of reports, webcasts, and events for mid-market and long time and will be here a long privately held companies at www.deloitte.com/us/dges time after this,” Taylor said, adding that the owners plan to have a new operator in place by

Official Professional Services Sponsor the time the contract with Chica- go-based Hyatt Hotels Corp. expires Oct. 31. Professional Services means audit, tax, consulting and financial advisory services. Royal Realties said last month As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory that a multimillion-dollar renova- Services LLP, and Deloitte Tax LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. tion with major improvements Certain services may not be available to attest clients under the rules and regulations of public accounting. planned for guest rooms, meeting rooms, public spaces, and the food Copyright © 2012 Deloitte Development LLC. All rights reserved. 36 USC 220506 and beverage outlets at the hotel Member of Deloitte Touche Tohmatsu Limited and conference center was to begin after Hyatt’s management contract expired. The hotel and conference center has 772 rooms, 62,000 square feet of meeting space and a rooftop ball- room. — Sherri Welch

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October 15, 2012 CRAIN’S DETROIT BUSINESS Page 21 Fori expansion inspires Macomb program to grow second-stage companies

BY CHAD HALCOM In 2010, Fori received a contract CRAIN’S DETROIT BUSINESS from Lockheed Martin Corp. to man- ufacture automated guided vehi- Shelby Township-based Fori Au- cles to transport aircraft assem- tomation Inc. isn’t technically a blies between stages of the second-stage company anymore, assembly process. but its recent $1 million expan- “It (the new building) is a stand- sion and commitment to add up to alone structure with a specialty 50 local jobs make it the poster design to support some of our non- child for a new Macomb County automotive, larger jobs,” Beck program targeting that business said. “It will support our growth category. and make us more versatile, since Fori recently fin- it includes an ished the addition of 80-foot-wide an 18,000-square-foot Fori is one kind (interior) with- building at its head- “ out a support quarters of success we column, which campus on allows you to Wing Drive know of out do the AGV ca- to house and pability, and test large- there that has an extra- scale load- thick concrete moving we’re looking floor for sup- equipment port.” for its grow- for in this Fori’s ex- ing base of pansion quali- non-automo- initiative. fied for assis- tive manufacturing ” tance from the customers. Stephen Cassin, Michigan Eco- Fori, a designer Macomb County Planning and nomic Develop- and manufacturer of Economic Development ment Corp. and assembly, testing Shelby Town- and welding equipment tradition- ship to help grow and add local ally used by automakers, has hired jobs rather than relocate outside 54 new employees since 2009. It the county. will add 50 more within five years The company already has more as it continues to diversify, said than a dozen immediate openings Mike Beck, Fori vice president of for the 50 planned positions in global operations. Shelby Township, Beck said, in- Macomb County Executive cluding three engineering open- Mark Hackel last week at Fori an- ings each in mechanical design in nounced the county’s new Home in software developing, plus one Macomb Business Retention Pro- apiece in accounting, sales and es- gram, launched over the summer timating, and for a technical build under a reorganization within the leader. county’s Planning and Economic “Mark (Hackel) has always said Development Department. we can’t ignore our existing com- Three of the county’s five eco- panies, and we did some research nomic development professionals and most growth comes within,” will be devoted full time to reten- Cassin said. “For every new com- tion and growth or economic “gar- pany transplant you land from Eu- dening” initiatives within the rope, there are five or six compa- county under the new initiative, nies here also building out or said Planning and Economic De- adding jobs.” velopment Director Stephen Macomb is home to nearly 18,000 Cassin. A fourth retention profes- businesses that account for more sional could be added to the de- than 287,000 of its more than partment soon. 360,000 jobs, according to its data. “Fori is one kind of success we The county does not break out em- know of out there that we’re look- ployees by business category, but ing for in this initiative. And our the Cassopolis-based Edward Lowe response has been very positive Foundation estimates more than out there from businesses where 4,500 second-stage companies ac- we make inquiries,” Cassin said. counted for more than 107,000 jobs An initial focus of the program or more than 35 percent of all pri- will be on second-stage companies vate-sector employment in Ma- with revenue of $1 million or more comb during 2009.     
  
 and nine or more employees, with The new Fori building will plans to grow, since this business house its automated guided vehi- category has the greatest potential cle, an assembly-line tool that al- to create new sustainable jobs, lows some aerospace, defense and Cassin said. agricultural implement manufac- Fori employs about 450 people turer customers to move heavy worldwide, including 180 in Ma- equipment, such as a tractor or comb County, and Beck estimates airplane fuselage, from station to the company will finish 2012 with station during production. about $120 million in revenue, Other Fori Automation loca- with 15 percent to 20 percent com- tions are in Tennessee, Korea, Chi- ing from nonautomotive cus- na, India, Germany, Brazil and tomers, compared with 5 percent Mexico. to 7 percent of revenue in 2009 Chad Halcom: (313) 446-6796, when revenue was around $92 mil- [email protected]. Twitter: lion. @chadhalcom 20121015-NEWS--0022-NAT-CCI-CD_-- 10/11/2012 4:30 PM Page 1

Page 22 CRAIN’S DETROIT BUSINESS October 15, 2012 Group wants to turn old Ford building into a tourist spot

BY SHERRI WELCH ings on Woodward, and some CRAIN’S DETROIT BUSINESS would say, one of the top five his- torically significant buildings in If the Woodward Avenue Action As- the country. sociation’s plans come to fruition, “It’s literally our story … the the former Ford Highland Park story of the manufacturing econo- Plant Administration Building my, the $5 day, middle class. It’s a and attached executive garage historic resource and economic de- could become a tourist destination velopment opportunity that we and more. cannot let slip away,” Carmona The association is negotiating said. with the building’s owner, Bloom- The Michigan Department of Trans- field Hills-based National Equity portation has awarded the associa- Corp., to purchase the 40,000-square- tion a $400,000 grant that must be foot site for $550,000, said Executive used toward the purchase either Director Heather Carmona. this year or next and the Michigan It was from the historic Albert Economic Development Corp. has put Kahn-designed building that Hen- $15,000 toward the purchase price, ry Ford once ran his car company, Carmona said. devising the moving assembly line The site has attracted nearly and $5-per-day salary for employ- $300,000 in federal National Scenic ees that helped to create a middle Byway funds for pre-planning class in the U.S. work to cover the cost of surveying The association hopes to restore and pre-appraisal work. the building and eventually host The association is seeking an- public tours at the site as an auto- other $200,000 to close the deal. motive heritage welcome center, With permission from the build- commemorating its important role ing’s owner, the association in 2010 in the automotive industry and in entered the site into a national Face- the region’s past, Carmona said. book contest, “This Place Matters,” Other possibilities include in- sponsored by the National Trust for corporating mixed-use aspects by Historic Preservation to recognize hosting tech startups from the site and garner grass-roots support for and/or turning parts of it into local preservation efforts. housing. Out of 117 sites around the coun- The site is why Woodward is a try vying for a $25,000 grant in the National Byway and All-American contest, the Highland Park Admin- Road, Carmona said. It’s one of the istration Building came in seventh most historically significant build- with more than 11,600 unique votes. 20121015-NEWS--0023-NAT-CCI-CD_-- 10/12/2012 11:04 AM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 23

CRAIN'S LIST: LEADING SMALL-BUSINESS LENDERS “An SBA 7(a) Guaranty-loan activity by lender, through fiscal year 2012; ranked by number of SBA loans in Michigan loan meant Total number Number of approvals of loans/ Total loaned Preferred Lender SBA big business Lending institution amount Program Express Other Rank City 1. Huntington Bancshares Inc. 611 114 487 10 for me.” Columbus $128,808,200 J.P. Morgan Chase & Co. 191 3 183 5 2. New York $16,698,400 Citizens Republic Bancorp Inc. 103 13 87 3 3. Flint $13,081,400 Lake Michigan Financial Corp. 46 27 19 0 4. Holland $21,931,000 “It was First State Bank who 5. Capitol Bancorp Ltd. 38 7130 recommended an SBA loan to refinance Lansing $17,975,800 my loans, revive my cash flow and refocus RBS Citizens, National Assocation (Charter One) 37 0370 6. Providence $2,438,300 my efforts.”

Fifth Third Bancorp Inc. 36 11 20 5 Al, First State Bank Business Customer 7. Cincinnati $13,718,100 – Chemical Financial Corp. 32 01715 8. $13,462,700 Midland As your local SBA Preferred Lender, our processes are TCSB Bancorp Inc. (Traverse City State Bank) 31 02011 streamlined so you can get right to business with the 9. Traverse City $5,034,700 right mix of products and services. Hantz Holdings Inc. 27 01017 10. $15,225,100 Southfield s3"! 4ERMAND2EAL%STATE,OANS Horizon Bancorp 26 7811 s,INESOF#REDIT 11. Michigan City $5,211,900 s"USINESS#REDIT#ARDS Mackinac Financial Corp. (mBank) 25 01411 12. Manistique $16,587,850 s#ASH-ANAGEMENT3ERVICES United Bancorp Inc. 24 0519 Earning your trust today…and every day. 13. Ann Arbor $24,597,610 KeyCorp 24 12 11 1 13. Cleveland $8,914,700 Talmer Bancorp Inc. 22 13 5 4 15. Troy $8,681,864 PNC Financial Services Group Inc. 22 9121 866-372-1275 | www.thefsb.com/sba 15. Pittsburgh $6,334,900 Comerica Inc. 20 11 1 8 17. Dallas $17,247,000 Level One Bancorp Inc. 20 1712 17. Farmington Hills $11,617,100 Independent Bank Corp. 19 0316 19. Ionia $10,467,900 SEVENTH Founders Financial Corp. 19 0136 19. Grand Rapids $3,025,600 18 11 4 3 ANNUAL Wells Fargo & Co. 21. San Francisco $7,414,400 22. First State Financial Corp. 17 10 6 1 St. Clair Shores $8,296,000 INSTITUTE Live Oak Bancshares Inc. 16 14 1 1 23. Wilmington $13,478,700 Michigan State University Federal Credit Union 13 076 FOR TAX 24. East Lansing $2,160,800 24. Honor Bancorp Inc. 13 085 Honor $1,861,700 PRACTITIONERS 1st Source Corp. 13 283 24. South Bend $1,097,200 Old Mission Bancorp Inc. 12 0111 27. Sault Ste. Marie $1,367,000 Bank of America Corp. 10 280 28. Charlotte $8,413,800 Thursday, October 25, 2012 Total ቢ 1,742 306 1,076 360 The Inn at St. John’s $550,753,274 at in Plymouth

This list was compiled from information provided by the Michigan district office of the SBA through the fiscal year 2012, ending Sept. 30. The Preferred Lender Program allows selected lenders to make certain SBA loans without prior approval from the SBA. SBA Express allows PLP lenders to use many of their own forms, analyses and procedures to process, service and liquidate SBA loans of up to $350,000. Other includes Regular 7(a), Community Express, Patriot Express, Certified Lenders Program, Dealer Floor Plan Loans, Export Working Capital, Export Express and Lenders Advantage Program. For details go to (1) Figures are statewide totals, including institutions not listed because they had fewer than 10 approvals. www.varnumlaw.com/tax2012 504 LOAN APPROVALS THROUGH FISCAL YEAR 2012; RANKED BY NUMBER OF LOANS IN MICHIGAN Certified development company* Number of loans Amount 1. Michigan Certified Development Corp., East Lansing 153 $87,673,000 2. Economic Development Foundation, Grand Rapids 68 $36,337,000 3. SEM Resource Capital Inc., Livonia 46 $24,595,000 4. Oakland County Business Finance Corp., Waterford Township 39 $15,328,000 5. Lakeshore 504, Holland 23 $12,016,000 6. Business Development Corp., South Bend, Ind. 2 $1,221,000 6. West Central Partnership Inc., Lima, Ohio 1 $596,000 7. Metro Growth and Development Corp., Southgate 1 $172,000 Total 333 $177,938,000 * Certified development companies are nonprofit financial institutions that work with the Small Business Administration to provide 504 loans, which are designed for the purchase of fixed assets such as equipment or real estate. In Your Corner. Source: Compiled from information provided by the Michigan district office of the SBA through fiscal year 2012, ending Sept. 30. Legal Experience DBpageAD_DBpageAD.qxd 10/12/2012 11:40 AM Page 1

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Page 26 CRAIN’S DETROIT BUSINESS October 15, 2012

BUSINESS DIARY CONTRACTS ment of the Graduate Education Pro- gram, a combination of its develop- R.L. Polk & Co., Southfield, an- ment programs for library schools to nounced it has entered into an agree- create a single, wide-ranging source ment with Chris Brady, president of Commercial Motor Vehicle that connects students and faculty with free resources designed to ad- Consulting, Manhasset, N.Y., to serve vance education and careers. Website: as an authorized sales agent for Polk’s www.proquest.com. portfolio of commercial aftermarket replacement demand products. Mobiata LLC, Ann Arbor, developers of travel apps, launched FlightTrack Whitehall Group LLC, Troy, has entered Free, a redesigned and free version of into an agreement with The McLean its flagship app, for iOS and Android Group LLC, McLean, Va., to expand the devices. Website: www.mobiata.com. consulting services offered in metro Detroit. The firms will collaborate on joint workout, restructuring and corpo- STARTUPS rate growth projects in the region. Gotta Get A Phone.com LLC, Auburn Hills, an online provider of remanu- EXPANSIONS factured smartphones, tablets and other wireless devices, at 3355 Bald Amerco Real Estate, Phoenix, Ariz., Mountain Road, Suite 10, Auburn announced that it has expanded the U- Hills. Telephone: (855) 321-2355. Web- Haul network of self-storage locations site: www.gottagetaphone.com. with its purchase of a 250,000-square- foot historical structure in Detroit’s STATEMENT REQUIRED BY THE ACT New Center at 899 W. Baltimore St. OF AUGUST 24, 1912, AS AMENDED BY Website: www.uhaul.com. THE ACTS OF MARCH 3, 1933, JULY 2, GreenPath Debt Solutions, Farming- 1946 AND JUNE 11, 1960 (74 STAT. 208) ton Hills, a nonprofit financial organi- SHOWING THE OWNERSHIP, MAN- zation that assists consumers with AGEMENT AND CIRCULATION OF: credit card debt, housing debt and Crain’s Detroit Business, Publication No. bankruptcy concerns, announced the 743370, published weekly except 3rd week of January, no issue the 3rd week of Decem- opening of an office in White Plains, ber and special issue 4th week of August at N.Y. Website: www.greenpath.com. Detroit, Michigan, for September 28, 2012. 7. Complete mailing address of known office JOINT VENTURES of publication: Crain Communications Inc.,1155 Gratiot Avenue, Detroit, Wayne The University of Michigan and the In- County, MI 48207-2997. ternational Genomics Consortium, 8. Complete mailing address of the headquar- Phoenix, Ariz., have launched Para- ters or general business office of the publish- digm Diagnostics Inc., Ann Arbor, a er: Crain Communications, Inc., 1155 Gratiot nonprofit joint venture that special- Avenue, Detroit, Wayne County, MI 48207- izes in personalized medicine. 2997. 9. Full names and complete mailing address of Publisher, Editor, and Managing Editor: MOVES Publisher: Mary Kramer, Crain Communi- Rogers Mantese & Associates PC, a cations Inc.,1155 Gratiot Avenue, Detroit, health law firm, moved from Royal MI 48207-2997. Oak to 32255 Northwestern Highway, Editor: Cindy Goodaker, Crain Communi- Suite 190, Farmington Hills. Tele- cations Inc.,1155 Gratiot Avenue, Detroit, phone: (248) 702-6350. Website: MI 48207-2997. Managing Editor: Jennette Smith, Crain www.healthlex.com. Communications Inc., 1155 Gratiot Avenue, Warner Norcross & Judd LLP, a law Detroit, MI 48207-2997. firm, moved from Sterling Heights to 10. Owner (Do not leave blank. If the publi- 45000 River Ridge Drive, Suite 300, cation is owned by a corporation, give the Clinton Township. Telephone: (248) name and address of the corporation immedi- 784-5199. Website: www.wnj.com. ately followed by the names and addresses of all stock holders owning or holding 1 percent Savorfull, a food membership service, or more of the total amount of stock. If not moved from 1555 Broadway St. to 3031 owned by a corporation give the names and W. Grand Blvd., Suite 425, Detroit. addresses of the individual owners. If owned Telephone: (313) 875-3733. Website: by a partnership or other unincorporated www.savorfull.com. firm, give its name and address as well as Xpert Technologies Inc., a provider of those of each individual owner. If the publi- computer network services and tech- cation is published by a nonprofit organiza- tion, give its name and address.) nology solutions, moved from Clinton Crain Communications Inc., 1155 Gratiot Township to 38721 Mound Road, Avenue Detroit, MI 48207-2997. Building B, Suite 800, Sterling K.E. Crain, 1155 Gratiot Avenue Detroit, Heights. Telephone: (248) 524-0101. MI 48207-2997. R.E. Crain, 711 Third Av- Website: www.xxpert.com. enue New York, NY 10017-4036. 11. Known bondholders, mortgagees, and NEW PRODUCTS other security holders owning or holding 1 percent or more of total amount of bonds, Meritor Wabco, Troy, a provider of in- mortgages or other securities: tegrated safety systems and efficiency None. components for the North American 15. Average number of copies of each issue commercial vehicle industry, an- of this publication sold or distributed through nounced that its electronically con- the mails or otherwise during the 12 months trolled air suspension is available to preceding the date shown above was: Total the North American market. Also, number of copies: 27,701; Paid distribution Meritor Wabco announced its next- outside the mails including sales through dealers, carriers, street vendors and counter generation lane departure warning sales and other paid distribution outside system, including the innovative Safe- USPS: 360; Mailed outside county paid sub- TraK technology by Takata Corp., scriptions stated on PS Form 3541: 24,112; Tokyo, available for fleet installation. Paid distribtuion by other classes of mail Website: www.meritorwabco.com. through the USPS: 0; total paid distribution: 24,472; Free or nominal rate outside-county NEW SERVICES copies included on PS Form 3541: 1,546; Free or nominal rate distribution outside the Michigan Humane Society, Bingham mail: 338; Free or nominal rate copies mailed Farms, launched a new website: at other clases through the USPS: 0; Total www.purrmichigan.org. free or nominal rate distribution: 1,884; total MotorCity Casino Hotel, Detroit, an- distribution: 26,356; Copies not distributed: 1,345; Total: 27,701, Percent Paid: 92.85%. nounced a new website launch for Actual number of single issue published Sound Board, its live-performance the- nearest to filing date (Sept. 28, 2012); Total ater, www.soundboarddetroit.com. number of copies: 25,694; Paid distribution Magic Moments Media LLC, Troy, outside the mails including sales through launched its new free mobile applica- dealers, carriers, street vendors, counter sales tion and online social marketplace and other paid distribution outside USPS: that allows users to take pictures from 350; Mailed outside-county paid subscrip- their iPhone, turn them into products, tions stated on PS Form 3541: 23,509; Paid distribution by other clsses of mail through and buy, share and sell them. Website: the USPS: 0; Total paid distribution: 23,859; www.magicmoments.com. free or nominal rate outside-county copies Harrington Communications, Grosse included on PS Form 3541: 354; Free or Pointe Woods, a strategic communica- nominal rate copies mailed at other classes tions and design firm, created and through the USPS: 0; Free or nominal rate launched Blast, an email marketing distribution outside the mail: 222; Total free platform. Website: www.blastemar or nominal rate distribution: 576; Total dis- keting.com. tribution: 24,435; Copies not distributed: 1,259; Total: 25,694; Percent Paid: 97.64%. ProQuest LLC, Ann Arbor, an informa- 17. I certify that all information on this form tion company, announced the develop- is true and correct: Keith E. Crain. 20121015-NEWS--0027-NAT-CCI-CD_-- 10/12/2012 11:53 AM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 27

CALENDAR TUESDAY sance Center, Detroit. $45 members, $55 guests of gala dinner and auction, 8-10:30 p.m. General Mo- CRAIN’S PAYS TRIBUTE TO 40 UNDER 40 members, $75 nonmembers. Discounts available tors Co., Cadillac division. Wines, automobiles OCT. 16 for DEC members. Website: www.econclub.org. and art converge in an event benefiting the Col- Join Crain’s Detroit Business in celebrating lege for Creative Studies. GM Design Center. Unlocked — Inside the CEO Mind. 8-10 a.m. De- the accomplishments of 40 of Southeast $5,000 benefactor level includes admission for troit Regional Chamber. With Michael Duggan, Successful Marketing via Facebook. 11:30 a.m.- Michigan’s brightest stars younger than 40, two to all events; $1,500 patron, single admission Detroit Medical Center CEO. Harper University 1:30 p.m. Inforum. With Carolyn Everson, Face- 5:30-9 p.m. Oct. 24 at Shriners Silver Garden book’s vice president of global marketing solu- to all; $500 supporter, single admission to dinner, Hospital, Detroit. $20 chamber members, $50 Event Center, Southfield. The winners of nonmembers. Contact: Emily Doerr, (313) 596- tions, and Scott Monty, head of global social auction. Contact: (313) 664-7464; email: 0377; email: [email protected]; web- Crain’s 40 Under 40 were highlighted in the media, Ford Motor Co. Cobo Center Riverview [email protected]; website: site: www.detroitchamber.com. Oct. 1-7 issue of Crain’s Detroit Business Ballroom, Detroit. $50 Inforum members, $70 www.collegeforcreativestudies.edu/diwa. and at www.crainsdetroit.com. nonmembers. Contact: (877) 633-3500; website: Tickets are $40 for 40 Under 40 alumni, $45 www.inforummichigan.org. WEDNESDAY for guests in groups of 10 or more, $50 for OCT. 17 CDB subscribers, $75 with a special CDB Post with Purpose: Social Media Strategies for SUNDAY subscription offer, $90 for nonsubscribers. Startups. 5:30-7:30 p.m. TechTown Detroit. With OCT. 21 40 Years in the Making: A Legacy Driven by De- For more information, call (313) 446-0300 or Emily Hay of Hay There Social Media. TechTown, sign. 8 a.m.-9 p.m. Oct. 17, 7:30 a.m.-9:30 p.m. Oct. visit www.crainsdetroit.com/events. Detroit. $25. Contact: Diane Love-Suvada, (313) Freedom Fund Dinner: Standing United for Civil 18, 7:30 a.m.-6 p.m. Oct. 19, 8 a.m.-10 p.m. Oct. 483-1302; email: [email protected]; web- Rights and Justice for All. 3 p.m. Southern Oak- 20. National Organization of Minority Archi- [email protected]; website: www.if site: www.techtowndetroit.org. land County chapter NAACP. With Geoffrey tects Detroit Chapter. Presentations, network- masemichigan.org. ing, tours of Detroit architectural landmarks, Fieger. Westin in Southfield. $85 general ticket, community service project, masquerade ball, $125 VIP. All tickets include membership. Con- awards banquet. Westin Book Cadillac, Detroit. Business Luncheon with Local Media Leaders. 11 FRIDAY tact: (248) 569-9700; website: www.socnaacp.org. $350 NOMA members, $450 nonmembers, $200 a.m.-1 p.m. Chaldean American Chamber of Com- OCT. 19 guests, $160 students. Contact: Karen Davis, (248) merce. With Crain’s Detroit Business Managing 210-3750; email: [email protected]; Editor Jennette Smith, Detroit Free Press Editorial Driving Real Estate. 11 a.m.-1:30 p.m. Commer- website: www.nomadetroit.org. Page Editor Stephen Henderson, Detroit News Edi- cial Real Estate Women. With Donna Inch, chair- COMING EVENTS torial Page Editor Nolan Finley and WJBK-TV2 man and CEO, Ford Motor Land Development News Legal Analyst Charlie Langton. Shenandoah Corp. Dearborn Inn, Dearborn. $45 CREW mem- How to Protect Your Reputation and Brand THURSDAY Country Club, West Bloomfield Township. $50 bers, $65 nonmembers. Register by Oct. 16 at Online. 5:30-7 p.m. Oct. 24. Association for members, $60 nonmembers. Contact: Justin www.crewdetroit.org. Women in Communications, Detroit chapter. OCT. 18 Fisette, (248) 626-0006; email: jfisette@tannerfried With Adrienne Lenhoff, president and CEO, man.com; website: www.chaldeanchamber.com. Master Your Disaster. 8 a.m.-2 p.m. International Shazaaam! Marketing and PR, Buzzphoria So- Facility Management Association-Southeastern SATURDAY cial Media and Promo Marketing Team. Auto- Michigan. Disaster preparedness for facility Detroit Economic Club Luncheon. 11:30 a.m.-1:30 OCT. 20 motive Industry Action Group, Southfield. $25 managers and building owners. SunGlo Ser- p.m. Detroit Economic Club. With Liam McGee, AWC members, $35 nonmembers. Contact: vices, Novi. $25 members, $35 nonmembers. Con- chairman, president and CEO of The Hartford Fi- The Art of Wine. Vintner’s private reception, 6- (866) 385-1784; email: [email protected]; tact: Susan Eagle, (800) 574-2000; email: nancial Services Group. Detroit Marriott Renais- 7:30 p.m.; silent auction reception, 6:30-8 p.m.; website: www.womcomdetroit.org.

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Page 28 CRAIN’S DETROIT BUSINESS October 15, 2012

Crain’s Job Front Visit www.crainsdetroit.com/jobfront to search for jobs, post a résumé or find talent. Job Front PEOPLE CONSTRUCTION nancial aid and scholarships, Walsh HOSPITALITY LAW College, Troy, from associate director Michael Krivick to chief estimator and Adrienne Cousins J. Russell LaBarge Jr. to partner, Bel- N THE SPOTLIGHT of financial aid, Oakland University, I business development coordinator, to business travel lanca Beattie & DeLisle PC, Harper Rochester. Woods, from partner, Johnson Rosati Ann Arbor-based NanoBio Corp. has Finsilver Construction & Development sales manager, named David Peralta CEO. He Corp., Troy, from chief estimator, LaBarge Aseltyne & Field PC, Farm- The Townsend Ho- ington Hills. succeeds company founder James C.E. Gleeson Constructors Inc., FOOD tel, Birmingham, Baker, M.D., Royal Oak. Roni Hakim to director of sales, The from front office Whitney, Detroit, from manager, tele- MEDIA who became manager, Hyatt EDUCATION marketing and guest retention, Mike Murri to station manager, senior vice Wynn/Encore Hotel & Casino, Las Ve- Regency O’Hare, WXYZ-Channel 7, Southfield, from president of Catherine Berrahou to director of fi- gas. Cousins Rosemont, Ill. director of sales. the global vaccine business for Merck & Co. Inc., New Jersey. Baker will continue to Peralta serve on NanoBio’s board of directors. Peralta, 45, had been NanoBio’s COO and CFO. He earned a bachelor’s degree in accounting from the University of Michigan and is a licensed Employee satisfaction. Certified Public Accountant in Michigan. Available in handy wallet size. NONPROFITS Joseph Selesny to director of the East Central re- gion, American Technion Society, Farmington Hills, from development officer, Midwest and Southeast re- gions, Birthright Israel Founda- tion, Bloomfield Selesny Hills. Coit Ford III to di- rector of govern- ment affairs and community rela- tions, Mechanical Contractors Asso- ciation Detroit, Detroit, from ex- ecutive assistant to the mayor and senior policy ad- Thousands of small businesses across the state have chosen Blue Cross Blue Shield of Michigan or Ford viser for City Councilman Ken- Blue Care Network because they understand the importance of a plan that embraces total body neth Cockrel Jr., Detroit. health for their employees at a price that won’t break their budget. We can help your business find the best health plan for your needs. SUPPLIERS

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OFFET submissions to Departments, Crain’s Detroit Business, 1155 Find out what thousands of Michigan businesses already know. Gratiot Ave., Detroit, MI 48207- 2997, or send email to Call 1-877-547-BLUE (2583) or visit bcbsm.com/grow. [email protected]. Releases must contain the person’s name, new title, company, city in which the person will work, former title, former company (if not Leading Michigan to a healthier future.SM promoted from within) and former Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association. city in which the person worked. Photos are welcome, but we cannot guarantee they will be used. 20121015-NEWS--0029-NAT-CCI-CD_-- 10/12/2012 4:54 PM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 29 Ballot proposals spur $30M in TV ad spending; to get heavier

BY AMY LANE will be at its heaviest yet in the In second place for overall spend- nesses, labor unions and environ- lective bargaining rights for SPECIAL TO CRAIN’S DETROIT BUSINESS four-week run-up to the election.” ing was the Clean Affordable Renew- mental interests. Michigan’s home help workers, The heaviest spending was by able Energy for Michigan coalition, a The battle over the New Interna- spent nearly $3 million, including Groups for and against ballot Protect Working Families, the union- group that includes energy compa- tional Trade Crossing between De- $1.6 million in Detroit. Proposal 4 proposals to amend the Michigan backed coalition that seeks pas- nies and leading business associa- troit and Windsor drew $5.1 mil- would also establish the Michigan Constitution have spent nearly sage of Proposal 2. The group spent tions opposing Proposal 3. The pro- lion in spending, including nearly Quality Home Care Council and $30 million on TV advertising since $6.4 million statewide and $2.7 mil- posal would increase Michigan’s $2.5 million in Detroit, by The Peo- require a statewide registry. August — and the “heaviest yet” is lion in the Detroit market to sup- renewable-energy requirements ple Should Decide, the campaign fi- And the umbrella group of busi- still to come, the Michigan Campaign port an amendment that would en- and require utility companies to nanced by the Detroit International ness associations and other inter- Finance Network reported Friday. shrine collective bargaining rights obtain at least 25 percent of their Bridge Co. entity. The campaign ests that is fighting three of the The nonpartisan organization in the state constitution, prevent electricity from renewable sources seeks passage of Proposal 6, which ballot proposals in particular — said proponents and opponents right-to-work laws, and nullify oth- by 2025. The coalition spent nearly would require a public vote on the Citizens Protecting Michigan’s Consti- have spent nearly $29.8 million — er laws and reforms. $5.7 million on TV ads, including NITC and other new international tution — spent $2.2 million, includ- including $13.8 million in the De- Protecting Michigan Taxpayers, a $2.5 million in the Detroit area. bridges and tunnels for motor ve- ing $1 million in Detroit. The troit area — through early October. group initially organized in west The backers of Proposal 3, Michi- hicles. Detroit International group is targeting Proposals 2, 3 And, the network noted in a Michigan that is fighting the col- gan Energy Michigan Jobs, spent Bridge owns the Ambassador and 4. news release, ballot committees lective bargaining measure, spent more than $2.9 million statewide Bridge. The campaign finance network have booked ad time statewide un- $4.3 million, including $1.8 million on TV ads, including $1.6 million Citizens for Affordable Quality compiled its figures using data til the Nov. 6 election, and “weekly in Detroit, the Campaign Finance in Detroit. The group includes re- Home Care, which seeks passage of from the public files of state broad- ad spending by the committees Network reported. newable-energy and other busi- a measure that would ensure col- casters and cable systems. REAL ESTATE JOB FRONT

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Fully Furnished Condominium provides stunning views "Forestville" - 700 Ft. Lake Huron, 20 acres lakeside 20 CBS Radio Detroit seeks Account Executives. Must of the Detroit River and also historic downtown Wyandotte. acres behind. Majestic overlook very private, secluded. have prior success selling, willingness to prospect and Sr. Business Planning Analyst Luxury waterfront living for $65 per day (minimum 90-day Beautiful ravine @ N. End. Treed throughout property, natu- strong closing skills. Please visit: cbsradio.com rental) is available for immediate occupancy. Nothing more ral walk down to untouched shoreline. Call 248-645-5340. to apply. EOE. Sr. Business Planning Analyst for Talmer Bank and Trust, Troy, MI. Duties: Lead all aspects of business than your suitcase is needed. Please call (313) 820-2201 planning & analysis, including implementing a business line reporting system & preparing financial analyses & or (313) 729-1694 for further information. INVESTMENT PROPERTY forecasts. Coordinate annual budgeting & quarterly forecasting of business line results. Implement financial reporting system to satisfy business requirements, including creating profitability reports of business units & Advertise your NATIONAL TENANT customers. Req. Bachelor Degree in Business, Finance, or Accounting. 5 yrs. exp. in a financial services pos w/ a bank Products and Services in Leased building for sale. Leased until 2021 2.4 or lending org. Experience to include: designing & implementing new budget, forecasting & variance analysis Crain’s Detroit Business million 8% return plus deprecation west side location. The Crain’s reader: processes; funds transfer pricing, including cash flow & matched terms methods; developing operational & financial mcinvestments25.com or call Bill 586-915-4441 models, including portfolio performance; coordinating the implementation of a financial reporting software system, AUCTIONS 26.5% influence the including customization to satisfy business requirements; & creating internal & external reports using OLAP tools; purchase of office/industrial CPA. Exp can be acq’d concurrently. To apply & see full duties, visit our website at www.talmerbank.com and click on the careers tab to access the Sr. Business Planning Analyst position. and commercial space. ABSOLUTE AUCTION Help them find you by 1,740 Sq Ft Building on 2.3 Ac TECHNICAL advertising in Crain’s Real Wed, Nov 7, 2012 @ 4PM **Technology Scouting & Innovation Scientist - Care Chemicals & Formulators: Estate section. BASF Corporation is seeking a Technology Scouting & Innovation Scientist - Care Chemicals & Location: 2705 Navarre Ave., Oregon, OH 43616 Formulators for our Wyandotte, Michigan location. Identify new technologies within BASF’s existing 313.446.6068 • FAX: 313.446.1757 portfolio (including those products received from the recent acquisition of Ciba and Cognis) or find new BROKER PARTICIPATION WELCOME E-Mail: [email protected] applications for existing technologies to be used for developing BASF’s personal care products, agricultural 1,740 SqFt Building, 2.365 Ac, 160’ x 662’ lot allowing room for development. Tanks additives, detergents and cleaners, and formulation technology business. Understand and analyze unmet new in 1994. Great Location, Formerly an auto repair & gas station. Zoned needs for our customers (chemical companies and consumer product companies), and liaise with internal Commercial. Close to high traffic businesses & St Charles Hospital. Call for more info R&D groups to identify existing technology or new applications for technologies to be used in formulations, & appt to view. Taxes: $5,545.80/yr. Terms: 10% Down Day of Sale, Balance at with a focus on chemicals used in surfactants and specialty polymers with a focus on wipes and other Closing. 2% BP added. cleaning agents. Develop innovation and idea generation for new or modified Care Chemicals products for specific customers, markets, and applications personnel. Oversee the analysis for BASF’sU.S. wipes and non- Paul J Henry Estate woven patent portfolio. Position requires a PhD in Chemical Engineering, Chemistry, or a related field and 5 years of industrial Robert J Henry, Executor experience. Experience must include working with polyacrylic acids, polymer and surfactant chemistries, Lucas Co Probate Case #: 2011 EST 002143 and in plant support. 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Credit cards accepted. |JOB FRONT See crainsdetroit.com/jobfront Crainsdetroit.com/Section/Classifieds for more classified advertisements 20121015-NEWS--0030-NAT-CCI-CD_-- 10/12/2012 5:42 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS October 15, 2012 Pharmacies: Tougher safety rules sought for drugmakers ■ From Page 1 regulations to protect the public emption would require legislation company fills about 50 prescrip- enough regulations and oversight reason to believe the medication we against the largest-known outbreak from Congress. tions each day for individuals. to produce safe drugs. administered was tainted.” of contaminated drugs manufac- But Waxman last week wrote in “This is a terrible thing,” said “There is a big difference be- At least 18 of the patients have tured by a compounding pharmacy. a letter to the FDA that lawmakers Raehtz, a pharmacist. “... There tween pharmacies like us who dis- been hospitalized at the three St. “We have had a few issues be- intended to exempt only small are lots of regulations and controls pense to individuals and others that Joseph Mercy health facilities in fore (nationally), but this is the compounding pharmacies and not in place for compounding pharma- make huge batches of (drugs) and Ypsilanti, Ann Arbor and biggest problem any compounding allow companies to become large- cies. I don’t know what process ship them all over the country. This Brighton, said Lakshmi Halasya- pharmacy has faced,” said Larry scale manufacturers. broke down.” is not what a compounding pharma- mani, M.D., St. Joseph Mercy’s Wagenknecht, CEO of the Michigan Wagenknecht said Congress She said Physicians Compound- cy like us does,” Raehtz said. chief medical officer. Pharmacists Association. most likely will move quickly to ing is periodically inspected by the In Michigan, the people known Halasyamani said those patients A compounding pharmacy mix- approve more safety regulations to Board of Pharmacy and follows the to have received the contaminated who have been hospitalized are in es different drug ingredients for a oversee compounding pharmacies guidelines and rules of the FDA epidural steroid injections were good to serious condition. They special prescription by a physi- that manufacture and ship large and the Drug Enforcement Agency. given the doses from four clinics, have received two high-dose anti- cian. The drug may be in short quantities of the specialty drugs. “Safety, quality control and er- Community Health said. fungal medications intravenously supply through regular pharma- While the Michigan Department of ror prevention are very important They are Michigan Pain Specialists to combat the infection, she said. cies or it may not be mass-pro- Community Health also doesn’t regu- to us,” Raehtz said. PLLC in Brighton, Southeast Michigan But Halasyamani said the fun- duced, Wagenknecht said. late the estimated 24 compounding Officials with Flint-based Diplo- Surgical Hospital in Warren, Neuro- gal infections are not from dirty Stephen Munk, CEO of Ash pharmacies in Michigan, the state mat Specialty Pharmacy Inc., which muscular and Rehabilitation in Tra- needles and are not contagious Stevens, a generic drug company in Board of Pharmacy licenses and in- produces and ships compounded verse City and Michigan Neurosurgi- like other forms of meningitis. Riverview, said large compound- spects all pharmacies and pharma- drugs, were unavailable for com- cal Institutes in Grand Blanc. Symptoms include fever, ing pharmacies don’t have to ad- cists, Wagenknecht said. ment last week. More patients in Michigan are headache, neck stiffness, sensitivi- here to the same strict manufac- Most of the compounding phar- “The FDA in the past has strug- expected to become sick, as symp- ty to light, and redness and turing practice regulations that macies in Michigan are small busi- gled over who regulates com- toms don’t become apparent for swelling at the injection site. the FDA requires of brand-name nesses that sell to individuals pounding pharmacies. It comes one to four weeks after injection, Last week, New England Com- or generic drug companies. based on physician prescriptions, down to size,” Wagenknecht said. said the Department of Communi- pounding issued a voluntary na- “It is a technicality in the law Wagenknecht said. “It makes sense to better define a ty Health. Dispensing of the prob- tionwide recall of all 1,200 drugs and that in my opinion should be ad- “We don’t have many large com- compound pharmacy that makes lem medications was halted Oct. 3. medical products it makes and gave dressed,” Munk said. pounding pharmacies in Michigan mass quantities to send out to oth- Nationwide, more than 13,000 up its state pharmacy license, said In 1997, Congress exempted com- that ship products to other states er states and a small pharmacy people in 23 states are suspected to Massachusetts health officials. pounded drugs from rules that or even within the state,” he said. that prepares medications for indi- have received the contaminated On Friday, Gov. Rick Snyder would require compounding phar- Karen Raehtz, owner and CEO of viduals in an immediate market.” steroid injections from 75 clinics and Attorney General Bill macies to follow good manufactur- Bloomfield Hills-based Physicians Raehtz said she believes small that purchased the tainted drugs. Schuette filed an administrative ing practices. To change the ex- Compounding Pharmacy, said her compounding pharmacies have Yvonne Kughn, CEO of South- complaint with the state Depart- east Michigan Surgical Hospital, ment of Licensure and Regulatory Af- said the facility has contacted pa- fairs to prohibit New England Com- tients it injected with the problem pounding from doing business in steroid and followed CDC recom- Michigan because it was acting as mendations. a manufacturer rather than a “I can’t disclose anything else at pharmacy. Schuette also is con- this point,” she said. templating civil or criminal action Southeast Michigan is a joint against the company. venture between local physicians New England Compounding set and Chicago-based National Surgical up a national recall center to re- Hospitals that operates 20 hospitals ceive the products, which include in 12 states. the pain reliever acetaminophen, In a statement last week, Michi- the blood-pressure medication gan Pain said two of the three clonidine, rubbing alcohol and deaths in Michigan were its pa- mouthwash. All are marked with tients. The pharmacy in Brighton company’s name, NECC or logo. treated 875 people with the re- “The CDC recommended that if called injection between Aug. 7 we were in possession of any med- and Oct. 2, said the statement. ications from New England that The clinic told patients it treated we should sequester them,” Ha- to go to the emergency department lasyamani said. “None have been at St. Joseph Mercy Hospital in Ypsi- implicated in this investigation. It lanti if they have symptoms, such as has had negligible impact on our fever, stiff neck or a new headache. supplies because we have other “All injections were adminis- sources.” tered in a sterile environment un- Jay Greene: (313) 446-0325, der strict protocols,” said the Michi- [email protected]. Twitter: gan Pain statement. “We had no @jaybgreene

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October 15, 2012 CRAIN’S DETROIT BUSINESS Page 31 Wine: Warm summer brings bountiful harvest for wineries ■ From Page 3 juice grapes are grown — heat nomic value to the state, pay more now is bringing in the Merlot. units have been up 14 percent over WHAT’S RED AND WHITE ALL OVER? than $42 million in state and local The long-term goal of Black Star the five-year average. In northern taxes and account for more than Farms is to distribute all around Most-grown varieties of grape in Michigan, in number of acres: Michigan — primarily the Lee- 5,000 jobs for a payroll totaling the Great Lakes, from Ohio to Illi- lanau and Old Mission peninsulas, Northwest Southwest more than $190 million. nois to New York. Their wines are where most of the state’s wine For Lutes, the long season available there now but in small Eight-county region of 110 farms 5-county region of 288 farms grapes are grown — heat units includes Grand Traverse and includes Berrien and Van Buren. means not only better grapes that quantities. were up 19 percent. have an opportunity to ripen “Our vines have the highest Leelanau. *Concord: 8,970 Vidal Blanc: 125 “That’s a significant amount of longer on the vine but also more of yield to date, and the fruit seems to Riesling: 485 Chardonnay: 165 *Niagara: 3,380 Riesling: 100 extra heat,” Jones said. a chance to think about the wine- be of good quality,” said Marco Pinot Noir: 196 Pinot Gris: 155 That was bad news for grape All varieties: 13,250 making process, experiment and Carlson of Silver Leaf Vineyard in All varieties: 1,450 growers in southern Michigan, * Used primarily for juice go slowly rather than cram all the Suttons Bay. “All in all, I’d say this where most of the fruit is grown work into a few weeks. is a very good year for vineyards for Welch’s Foods’ grape juice. Michigan For example, a year ago, the har- and wineries with an abundance of About 85 percent of the grapes Concord: 9,030 Riesling: 595 Niagara: 3,480 Pinot Noir: 235 vest had just begun. This year, be- fruit.” grown in the state go to Welch’s. All varieties: 15,000 cause the warmer weather allowed Harvesting is touch-and-go, he “Those were very severely dam- for earlier ripening, Lutes has said, because of the rain that aged,” Jones said. “They only got Principal use Yield, in tons been harvesting for about three northern Michigan has seen lately. about one-third of their normal Juice 12,100 2011 92,300 weeks. He harvested the Pinot “But we’ll get it done,” Carlson crop.” Those varieties used for Table 250 2012 30,000* Noir grapes at the start of the said. juice were at a vulnerable stage Wine 2,650 *Estimate month, letting them ripen on the The only real problem the winer- when the May frost hit, she said. Source: U.S. Department of Agriculture, National Statistics Service; vine a bit longer than usual be- ies report is one that they face But for wine, it made for a good Michigan Grape and Wine Industry Council cause of the longer harvesting every year, no matter the weather: year. For example, the small time — to “see what it gives us,” he Hungry birds steal the product. In amount of Cabernet Sauvignon California in the U.S. wine, grapes, grape juice and relat- said. these days of unpredictable weath- grown in Michigan has thrived. According to the Grape and ed industries annually produce Then the winery paused for a er, though, a predictable problem The grapes are grown primarily in Wine Industry Council’s website, nearly $790 million of total eco- few days, tested the equipment and is a good one to have.

Splash: Gibbs prepares amphibious sport vehicle for market ■ From Page 1 world, but the number of rivers, an email that while the Quadski is with BMW to use its four-cylinder lakes and coastline in America unique, a major powersports man- K-1300 engines in the Quadski. The alone is massive,” Gibbs founder ufacturer like Polaris doesn’t see company has worked for the past and Chief Strategy Officer Alan enough appeal to be interested in 18 months and more than 75,000 en- Gibbs said. “Our products are de- creating a competing product. gineering man hours to pair the signed to open up the world to an- “We would not be interested in engine with Gibbs Technologies’ other version of free- any powersports patented amphibious system. dom.” product that would Gibbs Technologies holds 300 Rommel Dionisio, retail at $40,000 — patents on its retractable tire and who covers power- We’re nothing there isn’t a mar- propulsion systems. sports compa- “ ket,” she said. “We The company also acquired a nies Polaris In- if not also are not inter- 54,000-square-foot plant in Auburn dustries and persistent, ested in anything Hills to support production of the Arctic Cat as related to personal Quadski. The plant also serves as senior vice and I’m watercraft; it’s too its corporate headquarters. Gibbs president of small of a market Technologies maintains an engi- equity re- hopeful with high cost of neering office with 12 employees search for entry. We were in in England. New York- we’ll get that business in the Gibbs Technologies will manu- based Wed- past, and it was facture its own Quadski chassis bush Securi- our money never profitable.” and propulsion components as it ties LLC, said Gibbs Gibbs, 73, a New can’t find willing suppliers, Jenk- Sports will need to back and make a Zealand entrepre- ins said. create a whole new decent profit. neur and business- “Local suppliers just aren’t that market to sell the man, founded a ver- ANDREW TEMPLETON/CRAIN’S DETROIT BUSINESS interested in us because of the low- Quadski. ” sion of the Neil Jenkins — pictured with the Gibbs Quadski — said the U.S. is the largest volume nature of our products,” “This is an innov- Alan Gibbs, amphibious vehicle market for Auburn Hills-based Gibbs Sports Amphibians Inc., but he finds the Jenkins said. ative product in an Gibbs Sports Amphibians Inc. company in Eng- regulatory climate daunting. Gibbs Technologies is also work- entirely new catego- land in 1997. Gibbs ing on seven other product lines, ry,” he said. “The price tag sounds is known for his envelope-pushing metro Detroit in 1997 to develop site visitors annually are from the including the off-road Hummer- like a lot, so it’s going to have to be ideas, first with his attempt to his dream, the Aquada amphibi- U.S. like vehicle the Humdinga, and the marketed to a very affluent com- launch a New Zealand-made car, ous car. “If the States is going to be your large, military-style amphibious munity. The challenge is for them the Anziel Nova, in 1967. However, Facing engineering challenges major market, you’ve got to be transport vehicle the Phibian. to create enough buzz around the Gibbs was never able to get the and regulatory hurdles, Gibbs here to understand that market,” Jenkins and his team were in product.” fiberglass car through regulators, hired Jenkins’ U.K. lightweight ve- Jenkins said. Washington, D.C., last month shop- Polaris’ most expensive 2013 and the business went defunct. hicle engineering firm Krafthaus — However, the regulations re- ping the two vehicles around but ATV, the Ranger Crew 800, and Gibbs then became a successful which worked on technology for main an issue, and so does access- have not inked any contracts. Yamaha’s most expensive 2013 per- merchant banker and investor. He iconic brands such as Rolls-Royce, ing suppliers. Gibbs said despite 15 years of sonal watercraft, the FZR, both brokered some of the largest deals Land Rover and Pininfarina — to as- The National Highway Traffic Safety hardships and pouring $200 million start at $13,999 — combined, in New Zealand history, including sist in the project. The two eventu- Administration requires that all cars into a company that has yet to sell a they’re still cheaper than the the $4.25 billion sale of Telecom ally merged companies to form contain airbags, and Gibbs Tech- single vehicle, he’s set on success. Quadski. Corp. of New Zealand. He also owned Gibbs Technologies Inc. in 1999, ac- nologies can’t find a supplier for an “I’m totally unreasonable,” he Dionisio said the average con- New Zealand’s largest auto dealer. cording to its website. airbag that may get wet, Jenkins said. “All my contemporaries are sumer for an ATV is a male age 35- Media reports say Gibbs is Gibbs and Jenkins moved the said. playing golf and getting bored and 45 with an annual household in- worth $500 million, with a larger- company back to England to avoid “The level of regulation in the old. come of $65,000-$75,000. He also than-life sculpture park on his U.S. auto regulations but lost its U.S. is daunting,” he said. “To be “Despite all of the struggles and said as many as 70 percent to 80 sprawling 1,000-acre New Zealand engine supplier, MG Rover, when it honest, we just weren’t prepared pain, I’m having fun,” Gibbs said. percent of ATVs are financed. farm, where he decided to invent went defunct in 2005, Jenkins said. for it.” “We’re nothing if not persistent, “We know it’s expensive, but we and invest in amphibious vehicles With 45 orders, Gibbs and Jenkins Gibbs Technologies spent the past and I’m hopeful we’ll get our money hope over time and higher vol- to traverse the farm. pulled the plug on the English op- five years with the hiring of more back and make a decent profit, but umes, we’ll get the price down,” Gibbs hired British sports car- eration and moved the company than 100 local employees, spending if we don’t, I’ll still be OK. This is Jenkins said. “We have decided to maker and engineering firm Lotus back to metro Detroit in 2007. hundreds of thousands of man what entrepreneurs do: take risks be very cautious with our market Engineering in 1996 to determine Gibbs Technologies returned to hours developing new products, in- that reasonable people would not.” entry because of the price.” whether an amphibious passenger the U.S. because it’s the company’s cluding the Quadski, Jenkins said. Dustin Walsh: (313) 446-6042, Mary Knutson, external rela- car was viable. They did, and largest market, Jenkins said. More Last month, Gibbs Technologies [email protected]. Twitter: tions manager for Polaris, said in Gibbs hired engineering firms in than 60 percent of its million web- announced a five-year agreement @dustinpwalsh 20121015-NEWS--0032-NAT-CCI-CD_-- 10/12/2012 5:41 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS October 15, 2012 UPCOMING Karmanos: Reform might sting ■ From Page 1 PARTNER EVENTS for Medicare and Medicaid Ser- cal environment focused on reduc- sults, it slows down physician de- vices. ing the federal budget deficit. cision-making and delays thera- Karmanos’ financial situation Over the years, however, legisla- py.” Crain’s partners with a variety of under health reform is unusual in tion has allowed 12 cancer hospi- Bepler said delays sometimes organizations on events and Michigan because it is the state’s tals, among them Memorial Sloan- cause physicians to discard some special subscription offers for their members. only single-specialty cancer hospi- Kettering Cancer Center in New cancer drugs that have reached tal with little uncompensated care, York, University of Texas MD Ander- their expiration date. Please visit their websites below. said Laura Appel, vice president of son Cancer Center in Houston and He said Karmanos also is under- federal policy and Fox Chase Cancer going a hospital-wide care im- advocacy with the Center in Philadel- provement project. Besides im- Marketing & Sales Executives of Detroit (MSED) Michigan Health and phia, to become ex- proving patient care and Annual Awards Gala. We will have to ÊÓä£ÓÊœ˜œÀiiÃ\Ê - Ê Hospital Association. “ empt from satisfaction, another goal is to in- Executive Leadership Award – Jay Farner, President & “Karmanos is make very radical Medicare’s DRG crease the time spent with doctors. CMO, Quicken Loans; MSED Trailblazer Award – Saad the only hospital payment system. “We need to speed up check-in Chehab, President & CEO, Chrysler Brand, Chrysler that has raised this changes in how we Karmanos would time, registration, evaluation Group LLC. MSED Platinum Award Recipients to be particular concern be paid under a time,” he said. “We want to see pa- announced at the event to the association,” provide care for modified cost reim- tients within 20 minutes when "VÌÊ£nÊUÊÈÊ«°“°ÊqÊ£ä\ÎäÊ«°“°ÊUÊ,œœÃÌiÀÌ>ˆ]Ê iÌÀœˆÌ Appel said. “We bursement system, they come in.” - Ê i“LiÀÃ\Êf£xä°Ê œ˜‡ i“LiÀÃ\Êf£™x are not aware of patients. We don’t Bepler said. By using nurse practitioners for Details and registration at www.msedetroit.org or call others in Michigan “The other can- more routine care, Bepler said, ­Ó{n®ÊÈ{·Èx™ä° who have this want to have to do cer hospitals that physicians can spend additional problem. We sup- are exempt get time with patients to discuss their Marketing & Sales Executives of Detroit (MSED) port their efforts.” that. paid on a cost ba- care plans and clinical research Fall Bowling & Networking Event: “Emagine the Karmanos uses ” sis. We are paid 75 opportunities. Connections” Join us to mingle with some of the its net income each Gerold Bepler, M.D., Barbara Ann percent to 80 per- “Our goal is to develop the next most accomplished marketing and sales executives year to help fund Karmanos Cancer Institute cent of costs” from generation of cancer care. To do in metro-Detroit. Learn more about MSED and meet many of its more Medicare, Bepler so, we need to explain to patients current members in your field of work. Proceeds from this than 700 cancer research programs said. why they should participate in event will go towards MSED’s scholarship program. and clinical trials, Bepler said. Under health care reform, clinical trials. The whole process œÛÊ£ÊUÊxÊ«°“°ÊqÊnÊ«°“° Karmanos, which treats about Medicare plans to cut hospital re- takes an hour,” he said. Star Lanes inside the Emagine Theater, Royal Oak 6,000 patients annually, is one of imbursements over the next 10 /ˆVŽiÌÃʇÊf{x]ʈ˜VÕ`iÃÊLœÜˆ˜}]Êà œiÊÀi˜Ì>]Êvœœ`Ê>˜`Ê the nation’s 41 National Cancer Insti- years by about $250 billion. The soft drinks. For additional information and to register, tute-designated comprehensive amount of cuts depends on how Cases more complex please go to www.msedetroit.org or call cancer centers. many Medicare patients each hos- While inpatient volume has ­Ó{n®ÊÈ{·Èx™ä° If Karmanos can’t fix its prob- pital treats and the quality deliv- been flat the past several years at lem through special federal legis- ered. Karmanos, outpatient visits have Greater Detroit Area Health Council presents Coffee lation that has helped 12 other can- The American Hospital Association grown an average of 10 percent, and Controversy: “You’ve Been Screened, Now cer hospitals, Bepler said, agreed to support ACA and the Bepler said. What? Moving Patients from Screening to Action on research funding could be reduced cuts because they expect to see a “We are seeing more complex Diabetes Self-Management” and some money-losing services corresponding decrease in charity cases and shifting more care to SPONSORED BY: Sanofi. SPEAKERS: Sue Hashisaka, could be discontinued. care and bad debt as more people outpatient areas,” he said. “Pa- Director of Clinical Transformation, Southeast Michigan “We will have to make very radi- are insured by private insurance tients are surviving longer and re- Beacon Community; Connie Porter, RN, BSN, MDiv, cal changes in how we provide and Medicaid. quire more visits. As they survive CDE, Nurse Health Coach at Health Alliance Plan; care for patients,” he said. “We Bepler said Karmanos has re- longer, they need more visits.” Kris Marcath, RN, BSN, Medical Policies & Appeals, don’t want to have to do that, but ceived higher reimbursement To take care of larger volumes of Chrysler Group, LLC we could have to cut certain ser- rates from Blue Cross Blue Shield of patient visits, Karmanos recently œÛ°Ê£ÊUÊÇ\ÎäÊ>°“°Êqʙ\ÎäÊ>°“° vices that we know we aren’t mak- Michigan and other payers “be- recruited seven surgeons, includ- œÃ«ˆViʜvÊ ˆV ˆ}>˜]Ê{ääÊ >VŽÊ
Ûi°]Ê iÌÀœˆÌ ing money on.” cause we have demonstrated high- ing a urologist, thoracic surgeon, 
 Ê i“LiÀÃ\ÊfÎx]Ê œ˜‡ i“LiÀÃ\Êfxä He said treatment of leukemia er outcomes and lower costs.” two breast surgeons and a neuro- To register, visit www.gdahc.org. and lung cancer are two examples. But, he said, those slightly high- surgeon, Bepler said. The institute Bepler said Karmanos’ historic er commercial insurance rates also plans to recruit six to eight re- 2012 MichBio Expo & Conference use of net income to supplement don’t make up for the pending searchers over the next two years, Online Registration is Open! research also would take a hit. Medicare cuts and also a reduction he said. “This would really hurt because in Medicaid disproportionate On Karmanos’ staff are academ- Nov. 7 – 8 Karmanos’ reputation is that the share payments from the state un- ic physicians affiliated with Wayne Kellogg Conference Center, East Lansing, MI research here has been very good der health care reform. State University School of Medicine www.michbio.org/expo and results in new drugs being and employed by its University available to patients,” he said. Physician Group. Karmanos has Simply Shopping The University of Michigan Com- Serving on its own about 176 active staff physicians SPONSORED BY: Bank of America, Merrill Lynch, prehensive Cancer Center also is To reduce costs and improve and another 209 consulting physi- Miller Canfield and Rehmann. The event includes: looking at the impact of the quality, Bepler said, Karmanos is cians on its medical staff, said Be- breakfast at Brio Tuscan Grille, exclusive fashion Medicare reimbursement cuts looking very closely at several pler, also the medical school’s as- show sponsored by Flagstar Bank, a Simply Shopping from the Patient Protection and shared services contracts it has sociate dean for cancer services. signature bag, gift wrapping, bag retrieval, discounts/ Affordable Care Act, said Nicole with Detroit Medical Center. The Bepler also plans to expand out- giveaways throughout the day, business development Fawcett, manager of cancer com- contracts cover food service, labo- patient care at Karmanos’ main opportunities and a wine & cheese after-hours network- munications with UM’s cancer ratory, security, respiratory care satellite location in Farmington ing event at Saks Fifth Avenue. Attendees are encour- center. and other areas. Hills, the Lawrence and Idell Weis- aged to drop off donations of clean, gently-used busi- UM’s Comprehensive Cancer “Can we deliver services better, berg Cancer Treatment Center. The ness attire for charity. Men and women’s professional Center and Karmanos are Michi- less expensive or with higher qual- second outpatient center is the clothing will be accepted by Jackets for Jobs, Inc. gan’s only two federally designat- ity? It is not unusual to look at Monroe Cancer Center, a joint ven- œÛ°ÊnÊUÊnÊ>°“°ÊqÊÈÊ«°“°ÊUÊ-œ“iÀÃiÌÊ œiV̈œ˜ ed centers. these (contract) services from time ture among Karmanos, Mercy fxäÊ«iÀÊà œ««iÀ°Ê/œÊÀi}ˆÃÌiÀ]ÊV>Ê­Ó{n®ÊÈ{£‡n£x£]Ê to time,” Bepler said. Memorial Hospital System of Monroe [email protected] or Earlier this year, Karmanos re- and ProMedica of Toledo. www.troychamber.com/cal. Seeking an exemption cently ended a six-bed intensive “We want to expand radiation One solution Bepler is seeking care unit shared services contract oncology and infusion services for Meet the Buyers: A Procurement Matchmaking to increase Medicare payments is with DMC and now operates and complex cancer care and women’s Event. There’s never been a better time for business an exemption from Medicare’s di- staffs its own ICU in a different lo- health at Weisberg,” said Bepler, owners to pursue government contracts. This agnostic-related group (DRG) re- cation. Last year, Karmanos ended noting that plans call to add 7,000 matchmaking and government contracting event is imbursement system, which pays an environmental and cleaning to 10,000 square feet at the 17,000- a valuable investment of your time. This event SOLD hospitals flat fees for specific con- services contract with DMC. square-foot facility. OUT last year! This half-day program is designed to ditions. Bepler said Karmanos also is Once city planning approvals help small businesses begin or expand their business Over the past several months, planning to end a lab contract for are sought, Bepler said, Karmanos with government agencies. Meet buyers, understand Karmanos has garnered the sup- blood, kidney and liver services could finalize the plan next year buying requirements and how to get into the buying port of U.S. Sen. Debbie Stabenow, with DMC by Oct. 1, 2013. The can- and open the expanded facility in system — A great way to introduce your company, your D-Mich., and U.S. Rep. John Cony- cer hospital will staff its own labo- 2014. products and/or services and get exposure! ers, D-Detroit, for legislation that ratory for quick turnaround lab “We are doing what we can be- œÛ°Ê£ÎÊUÊnÊ>°“°Êqʣʫ°“°ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ would exempt Karmanos from services, he said. cause we can’t absorb all those -V œœVÀ>vÌÊ œi}iÊUÊfÓxÊ«iÀÊ«iÀܘ Medicare DRG reimbursement. “Cancer patients are different cuts as a specialty hospital,” he ,i}ˆÃÌÀ>̈œ˜ÊÀiµÕˆÀi`°Ê >Ê­ÇÎ{®Ê{ÈӇ{{În]Ê Bepler said Stabenow and Cony- than other patients. We need said. or email [email protected] ers have told him that passing any (blood test) results in 20 minutes, Jay Greene: (313) 446-0325, legislation which increases the not one hour,” Bepler said. “When [email protected]. Twitter: deficit is difficult, given the politi- we have delays in getting the re- @jaybgreene 20121015-NEWS--0033-NAT-CCI-CD_-- 10/12/2012 5:46 PM Page 1

October 15, 2012 CRAIN’S DETROIT BUSINESS Page 33 Courts: www.crainsdetroit.com Oakland, Macomb must adapt systems EDITOR-IN-CHIEF Keith E. Crain ■ PUBLISHER Mary Kramer, (313) 446-0399 or From Page 3 [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- and provides an opportunity for the business docket for certain commer- The task force convened by the commercial bank loans or com- 6032 or [email protected] Supreme Court to appoint those cial disputes where damages are es- State Bar of Michigan offered the mercial real estate, and insurance EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 0460 or [email protected] with that kind of specific experience timated atmore than $500,000. business court concept in 2011 as coverage disputes involving more MANAGING EDITOR Jennette Smith, (313) 446- (and) interest.” Macomb County, which marks one of 13 proposals to streamline than one insurance company. 1622 or [email protected] MANAGER, DIGITAL CONTENT STRATEGY Nancy But three county circuit courts — the one-year anniversary Nov. 1 for trial courts and make better use of It specifically excludes personal Hanus, (313) 446-1621 or [email protected] Oakland, Macomb and Kent — all the state’s first business court pro- technology and collaboration. injury, product liability, malprac- DEPUTY MANAGING EDITOR Daniel Duggan, (313) 446-0414 or [email protected] have launched their own business gram under Judge John Foster, and “We’ve al- tice and wrongful death, most real SENIOR EDITOR Bob Allen, (313) 446-0344 or court dockets in the past year, and Kent County will need to alter the ready gotten estate disputes involving residen- [email protected] WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- none of them is exactly like the leg- categories of cases that fall under some prelimi- tial property, civil rights cases and 8158 or [email protected] islated version on Snyder’s desk. business court jurisdiction. nary indications labor/employment disputes with SENIOR EDITOR Gary Piatek, (313) 446-0357 or [email protected] That bill requires every circuit It’s also unclear if the Supreme from Kent and businesses that do not involve co- SENIOR DESIGNER Jeff Johnston, (313) 446-1608 court in the state with three or more Court will allow local circuits to Macomb coun- owners or officers. or [email protected] DATA EDITOR Brianna Reilly, (313) 446-0418, judges after Jan. 1 to begin placing spread the business docket around ties that are con- “Our probate and family court [email protected] business and commercial litigation most of its bench, as Oakland has sistent with re- areas all implicitly work on the as- WEB PRODUCER Norman Witte III, (313) 446- 6059, [email protected] cases valued at more than $25,000 done, or order them to be consolidat- sults in other sumption that judges are more ef- EDITORIAL SUPPORT Robertta Reiff, (313) 446- before judges who are assigned to ed under more dedicated judges, as states, to sug- fective when they develop an exper- 0419; YahNica Crawford, (313) 446-0329 NEWSROOM (313) 446-0329, FAX (313) 446- business cases within that circuit in Kent and Macomb. gest they’re tise in a specific area of law,” 1687 TIP LINE (313) 446-6766 by the Michigan Supreme Court. Andrew Doctoroff, partner in helping resolv- Akers Doctoroff said. “And this is an area REPORTERS Business court judges would be commercial litigation at Detroit- ing to court cases very rapidly,” where that can also be valuable.” Daniel Duggan, deputy managing editor: (313) appointed to six-year terms ending based Honigman Miller Schwartz and Akers said. “Both of those operat- Doug Toering, managing mem- 446-0414 or [email protected] Jay Greene, senior reporter: Covers health care, April 2019, which presumably Cohn LLP and co-chair of the busi- ing business courts have done an ber of the Troy-based Toering Law insurance, energy utilities and the environment. means appointees would need to be ness impact committee of the State excellent job of getting judges in- Firm PLLC and former in-house coun- (313) 446-0325 or [email protected] Chad Halcom: Covers litigation, higher education, in place by next April. Judicial Impact Task Force, said volved early in (a resolution sel attorney for General Motors Co., non-automotive manufacturing, defense Smaller circuits may, if they dedicated focus from specialist process) and publishing written agreed that the business courts will contracting and Oakland and Macomb counties. (313) 446-6796 or [email protected] choose, create business courts as judges is one of the chief benefits a opinions, which gives practition- create more certainty and efficien- Tom Henderson: Covers banking, finance, well, and some circuits could allo- business court can offer the state. ers all kinds of guidance that’s cy in resolving business disputes. technology and biotechnology. (313) 446-0337 or [email protected] cate an experienced district or pro- Michigan joins a community of at been helpful.” “It can mean having judges with Bill Shea, enterprise editor: Covers media, bate court judge to the business least 25 other states to launch busi- The bill gives business courts ju- an interest in business litigation, a advertising and marketing, the business of sports, and transportation. (313) 446-1626 or docket if the court has a jurisdiction ness courts or complex litigation risdiction over lawsuits between body of law available online to [email protected] plan that lets judges’ powers overlap courts since 1993, and no state that businesses and their owners or of- lawyers and litigants, and a way to Nathan Skid, multimedia editor. Also covers the food industry and entertainment. (313) 446-1654, as needed. started such a program has aban- ficers, including commercial liti- address business cases much more [email protected] But the $25,000 minimum departs doned it, said Diane Akers, attorney gation, business formation and quickly,” he said. Dustin Walsh: Covers the business of law, auto suppliers and steel. (313) 446-6042 or from the rules of a pilot program at Bodman PLC and co-chair of the dissolution, shareholder oppres- Chad Halcom: (313) 446-6796, [email protected] that Oakland County launched July task force business impact commit- sion and derivative actions, secu- [email protected]. Twitter: Sherri Welch: Covers nonprofits, services, retail and hospitality. (313) 446-1694 or 1. The program created a specialized tee with Doctoroff. rities litigation, disputes over @chadhalcom [email protected] ADVERTISING

SALES INQUIRIES: (313) 446-6052; FAX (313) 393-0997 SALES MANAGER: Tamara Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. Arts: Dlectricity’s impact estimated at $1M Langan ADVERTISING SALES Christine Galasso, Lori ■ From Page 3 Tournay Liggett, Dale Smolinski CLASSIFIED SALES (313)-446-0351 point,” he said. “The use of light is the organizers’ projected 50,000 rector of public programs for the town, according to a 2011 survey EVENTS DIRECTOR Nicole LaPointe meaningful, the regeneration of De- goal, said Schwartz, who also DIA and part of the curatorial se- by nonprofit Americans for the Arts. DIRECTOR, INTEGRATED MARKETING Eric Cedo troit or shedding light on Detroit.” served as chairman of the event. lection committee of Dlectricity. With 75,000 attendees, the econom- SALES PROMOTION MANAGER Karin Pitrone EVENTS COORDINATOR Kacey Anderson Sue Mosey, president of Midtown Dlectricity featured video pro- Baranski said the admissions ic impact could be near $1.28 mil- SENIOR PRODUCER FOR DIGITAL/ONLINE Detroit Inc. and co-producer of the jections, 3D videos, lasers, light counter couldn’t keep up with the lion for the weekend event. PRODUCTS Pierrette Dagg festival with Art Detroit Now, said sculpture, interactive designs and crowd, so employees began using a Lyon said most of the area’s re- MARKETING ARTIST Sylvia Kolaski events like Dlectricity and its oth- performances, along with family- clicker to keep track of visitors tail shops stayed open to capitalize SALES SUPPORT Suzanne Janik, YahNica Crawford er events, such as Noel Nights and friendly activities, food trucks, pouring in the doors. on the crowds. PRODUCTION MANAGER Wendy Kobylarz Art X Detroit, put affluent crowds in concerts and block parties. “We were stunned at the “There was a real monetary val- CUSTOMER SERVICE the streets for short-term econom- “The event surpassed my wildest turnout,” he said. “We seem to ue for businesses in Midtown and PRODUCTION SUPERVISOR Larry Williams ic gain and boost the city’s image expectations,” Schwartz said. “I have hit upon something here.” downtown, and the shop owners MAIN NUMBER: Call (877) 824-9374 or write [email protected] for long-term gain. could not believe how many people The event likely had a strong fi- were clearly maximizing that op- SUBSCRIPTIONS $59 one year, $98 two years. “A lot of places stayed open late were on Woodward Avenue, of all nancial impact to the community portunity,” Lyon said. “While it Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 per year to out-of-state to take advantage of the crowds, ages and colors, walking, talking, as well, said Maud Lyon, executive was the arts community getting rate for surface mail. Call (313) 446-0450 or (877) 824-9374. and the business owners I’ve talked dancing and appreciating art.” director of the Detroit-based Cultur- the attention, it was the entire SINGLE COPIES: (877) 824-9374 to said they doubled the amount of The hordes of art spectators bled al Alliance of Southeast Michigan. area that was brought to life.” REPRINTS: (800) 290-5460, ext. 125; business over the weekend,” Mosey over into galleries and shops up The average cultural event at- Dustin Walsh: (313) 446-6042, (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com said. “All of these events help us and down Woodward Avenue. tendee spends $17 on food, bever- [email protected]. Twitter: TO FIND A DATE A STORY WAS PUBLISHED: build the Midtown brand, which is George N’Namdi, founder of the age or other items while down- @dustinpwalsh (313) 446-0406 or e-mail [email protected] heavily built around the arts.” G.R. N’Namdi Center for Contempo- CRAIN’S DETROIT BUSINESS IS PUBLISHED BY Schwartz brought the develop- rary Art on East Forest Avenue, said CRAIN COMMUNICATIONS INC. CHAIRMAN Keith E. Crain ing idea to the well-connected Mo- roughly 4,500 PRESIDENT Rance Crain sey last fall with hopes of launch- people entered Let Olympia Entertainment SECRETARY Merrilee Crain ing an event. his gallery over TREASURER Mary Kay Crain add the Sparkle to your Season Executive Vice President/Operations The two groups worked together the weekend. He William A. Morrow to raise funds, resulting in a kept it open un- Group Vice President/Technology, Manufacturing, Circulation $600,000 budget from philanthrop- til midnight Fri- Unforgettable Holiday Celebration Ideas to Fit Every Size and Style Robert C. Adams ic organizations, with the Kresge day and 2 a.m. Vice President/Production & Manufacturing For a list of ideas visit: OlympiaEntertainment.com/HolidayParties Dave Kamis Foundation taking the lead. Sunday, concur- Chief Information Officer Paul Dalpiaz Laura Trudeau, senior program rent with Dlec- Chief Human Resources Officer development director for commu- tricity. Margee Kaczmarek nity development and Detroit pro- He said 2,500 Director of Audience Development Operations N’Namdi Michelle Roth grams for Kresge, said the non- people attended G.D. Crain Jr. Founder (1885-1973) profit was interested in Dlectricity the gallery’s grand opening, and Mrs. G.D. Crain Jr. Chairman (1911-1996) as a complementary program to its getting 500 to attend a gallery EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) Art X Detroit event, a six-day April event is a “great number.” 446-6000 Cable address: TWX 248-221-5122 AUTNEW DET program highlighting the works of As part of the event, N’Namdi CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 Kresge’s arts fellowship program. featured a rear projection installa- is published weekly, except for a special issue the “Art X Detroit got a lot of atten- tion showing manipulated images third week of August, and no issue the third week of December by Crain Communications Inc. at tion, and from where we sit we of Woodward Avenue from 8 Mile 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and want a cadence of programming Road to the riverfront. additional mailing offices. POSTMASTER: Send with Art X Detroit and Dlectrici- “It lit up Detroit in a way that address changes to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. Box 07925, Detroit, ty,” she said. “This really helps helps puts us on a world stage. Our Creating Championship Level Events MI 48207-9732. GST # 136760444. Printed in build on the Creative Corridor and community came out and support- U.S.A. Call For Details: 313-471-3333 Entire contents copyright 2012 by Crain is helping convince a lot of cre- ed us,” N’Namdi said. Communications Inc. All rights reserved. ative businesses to move down the The Detroit Institute of Arts stayed Reproduction or use of editorial content in any manner without permission is strictly prohibited. Woodward Corridor.” open for the event Friday night, The crowd of 75,000 Friday and but the museum saw an influx of Saturday nights was well above visitors, said Larry Baranski, di- 20121015-NEWS--0034-NAT-CCI-CD_-- 10/12/2012 5:38 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS October 15, 2012 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF OCT. 6-12

ceived the Five Star Dia- mond Award from the New Area groups AUTOWEEK LAUNCHES FREE APP FOR IPAD Windows 8 York City-based American Autoweek, a sister Academy of Hospitality Sci- publication to Crain’s ences, the company said. share $2M to Detroit Business, has The jeweler, which is cel- launched a free iPad app ebrating its 65th year in for its consumer shopping site, shopautoweek.com. Flash fix not business this month, is the help startups first in the country to get The app is designed to supplement the website and offers our Southeast Michi- offline browsing capability in settings where Internet access the designation from the is not available. noted review group, it said. gan organizations F will share $2.19 mil- Some of the other features: a big deal The academy, founded in Ⅲ 1949, is known for its re- lion over the next three Expert recommendations and reviews from the editors of Autoweek. views and ratings of hotels, years to help would-be en- icrosoft will unveil You A Human LLC, a Detroit- trepreneurs and startup Ⅲ Advanced search and filter options. its much-bally- based company that devises resorts, spas, airlines, cruise lines, automobiles, companies find small- to Ⅲ Side-by-side vehicle comparisons. M hooed next genera- simple games websites can medium-sized manufactur- Ⅲ The latest news on in-car technology. tion operating system for use to determine whether products, restaurants and chefs. ing firms to do low-volume, Ⅲ Dealer locator. desktops and tablets, Win- visitors are actual humans rapid-production prototyp- Ⅲ dows 8, on Oct. 26, and it or spam programs, said that The Ahee award is for Ability to save vehicle searches, comparisons and outstanding quality and ing and custom projects. inventory. comes with built-in security while his and other content Sharing the grant — features aimed at prevent- development companies customer service. The jeweler was founded awarded through the feder- ducer of 5-Hour Energy said of 2013. That continues a ing many of the malware still code to support older al Jobs and Innovation Accel- the plant will become its two-year trend of rate in- problems associated with versions of Flash, most de- in a bowling alley at Harper and Van Dyke in Detroit in erator Challenge for Ad- third in Wabash, Ind. creases of less than 8 per- Adobe’s Flash products over veloping is in HTML5, and vanced Manufacturing — will Ⅲ Brazilian auto suppli- cent per year. the years. the move by Microsoft 1947 by Edmund Ahee. It’s run today by his widow, be the Detroit-based Work- er Autometal SA purchased Ⅲ Detroit Mayor Dave Bing The impact, however, shouldn’t have much of an force Intelligence Network for a majority ownership in said the city won’t run out of should be fairly minimal for effect. Bettejean Ahee, and children and grandchildren. Southeast Michigan, the De- Century Plastics Inc., a Shel- cash later this year as efforts local companies that use troit Regional Chamber, the by Township-based suppli- to cut costs and restructure older versions of Flash for WSU fetes physicists Plymouth-based Michigan er for an undisclosed price. services move ahead. His their website content. ASE honors top HR execs Manufacturing Technology Ⅲ Ann Arbor-based Com- comments followed a warn- Windows 8 will use what Wayne State University lat- The American Society of Center and the Ann Arbor- pendia Bioscience Inc., a ing by a financial advisory the company calls Compati- er this month will celebrate based National Center for 2006 spinoff from the Univer- board that the city could be bility View, which controls the involvement of a team Employers will honor Michi- gan’s human resources ex- Manufacturing Sciences. sity of Michigan, was ac- broke in a few months. the websites that users can of its physicists in what is quired by Life Technologies Ⅲ Detroit Police Chief view based on whether believed to have been the ecutives of the year Oct. 24 at the Detroit Athletic Club. Corp. of Carlsbad, Calif. Ralph Godbee resigned after those sites have been ap- discovery of the holy grail ON THE MOVE Terms were undisclosed. an internal-affairs officer proved by Microsoft in a of physics — the Higgs bo- This year’s honorees are Ⅲ Troy-based Kelly Ser- Ⅲ Penske Automotive revealed that she and the process called whitelisting, son, also known as the “God Nancy Rae, senior vice presi- vices Inc. announced that Group Inc. has acquired the chief had been conducting which tests their Flash- particle” — at the CERN lab- dent of human resources for Daniel Lis, senior vice presi- BMW/MINI of Ontario deal- a sexual relationship. based content for hacker oratory for particle physics Auburn Hills-based Chrysler dent, general counsel and erships for an undisclosed Ⅲ Art Van Furniture will and malware vulnerability. in Switzerland. Group LLC; Mark Jenkins, vice corporate secretary, plans amount. Penske expects the donate $1 million to Forgot- Adobe offers customers Paul Karchin and Robert president of human re- to retire Jan. 1. Peter Ontario, Calif., dealerships ten Harvest, which is the updates that are compatible Harr, professors in the De- sources, Farmington Hills- Quigley, senior vice presi- to contribute about $125 largest corporate donation with Windows 8, and Win- partment of Physics and As- based Logicalis Inc.; Deloris dent, global client relation- million in annual revenue. in the nonprofit’s history. dows 8 itself will offer Win- tronomy, headed up the Hunt, senior vice president ship team, will succeed Lis Ⅲ BorgWarner Inc. is con- Ⅲ Small thinking and dows 7 user-switching to WSU team, which had mem- and chief human resources as general counsel, and cerned that the fourth corporate bureaucracy that Windows 8 Flash upgrades. bers working at CERN, at officer for Detroit Medical James Polehna, vice presi- quarter may be more diffi- block innovation need to be Windows 8 actually the Fermi National Accelerator Center; and Joan Cliff, direc- dent of investor relations cult for companies as an squashed, Dan Gilbert told comes with two versions of Laboratory in Illinois and on tor of human resources and and corporate communica- auto sales slowdown in Eu- leaders from 72 Internet Explorer 10, the the WSU campus. Thou- quality for Detroit-based tions, will become corpo- rope widens, Tim Manganel- Gilbert/Rock Ventures/De- Metro version, which offers sands of scientists have re- nonprofit Adult Well-Being Services. rate secretary. lo, CEO of the Auburn troit Venture Partners com- a visual-heavy interface searched the particle. Detroit Mar- Scott Garberding, senior Hills-based company, told panies at the that only allows whitelisted The event is at 4 p.m. Oct. riott Renaissance Center, so vice president of manufac- Bloomberg Television. sites. But owners of laptops 25 at the McGregor Memorial organizations can thrive turing and world class man- COMPANY NEWS Ⅲ Faurecia North America and desktops can download Conference Center. To RSVP, and overcome what he calls ufacturing group for Ⅲ Regional Elite Airlines Inc. completed its new another version of IE 10 call (313) 577-0300 or visit “horizontal gravity.” Services LLC plans to termi- 50,000-square-foot customer that will run all Flash me- specialevents.wayne.edu/hi Chrysler, will deliver the Ⅲ The labor stalemate be- nate its more than 900 em- center in Southfield. dia. ggs-bosun-reception-2012. keynote address. Registra- tween NHL owners and play- ployees at Detroit Metropoli- Adobe stopped support- tion ends Friday. The event ers has consumed two of the tan Airport because the ing Flash for smartphones costs $75 per person, $420 Detroit Red Wings’ 41 regular- Ahee wins 5-star honor ground-services provider OTHER NEWS and, like everyone else, has for a group of six and $520 season home games, result- — a subsidiary of Atlanta- Ⅲ The U.S. Forest Service gone to HTML5. Grosse Pointe Woods- for a group of eight. Regis- ing in a big financial impact based Delta Air Lines Inc., is awarding $250,000 for De- Tyler Paxton, CEO of Are based Ahee Jewelers has re- ter at aseonline.org. to local bars and restau- Metro’s largest carrier — is troit-area reforestation led rants. According to the De- going out of business. Delta by the nonprofit The Green- troit Metro Convention & Visi- has hired another of its ing of Detroit as part of near- tors Bureau, every Red Wings unit, Delta Global Services, ly $3 million for the Great game at Joe Louis Arena gen- Lakes Restoration Initiative, to take over that work, and erates $1.9 million in eco- AP reported. Other Michi- all Regional Elite staffers nomic impact downtown. will be offered jobs. gan projects are in Flint, Ⅲ General Motors Co. said Grand Rapids and the U.P. it expects to hire as many as Ⅲ The Washington, D.C.- OBITUARIES BEST FROM THE BLOGS 1,500 people for a new com- based National Committee for Ⅲ Franklin Arney, owner of READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS puter center in Warren. Quality Assurance has rated the Boars Head Inn in Dear- Ⅲ Canada’s largest inde- the Medicaid plan offered by born Heights and a devel- Poll shock on Belle Isle control More transparency on grants pendently owned commer- Blue Cross Blue Shield of oper of manufactured cial real estate company, Michigan and the Medicare housing communities, died It was a poll result Two Michigan Toronto-based Avison Young, Advantage plan by Priority Sept. 26. He was 81. about“ as surprising as foundations“ are among opened an office in Detroit. Health as the best plans for Ⅲ Alex Karras, the Detroit hearing that a majority 15 nationally that have Ⅲ New York City private their patient populations in Lions star defensive lineman of the Tea Party now committed to fully equity firm American Securi- Michigan. Blue Cross Com- who went on to an acting ca- plans to vote for Barack disclose the grants they ties LLC acquired Royal Oak- plete of Michigan ranked No. reer, died Oct. 10. He was 77. Obama. make on a consistent based HHI Group Holdings LLC. 4 nationally, and the Priority Ⅲ basis, pulling the curtain Budd Lynch, Detroit Red ” back from their Terms were not disclosed. Health Medicare plan ranked Wings longtime public ad- work. Ⅲ Farmington Hills- 14th. dress announcer, died Oct. based energy drink maker Ⅲ Blue Cross Blue Shield 9. He was 95. ” Living Essentials LLC is plan- of Michigan increased rates Ⅲ Champ Summers, for- Reporter Tom Henderson’s blog about accounting, Reporter Sherri Begin Welch’s blog ning a $25 million expan- an average of 7.5 percent mer Detroit Tigers outfield- banking, venture capital and high tech can be found about Southeast Michigan nonprofits can be found sion expected to bring as for state small-businesses er, died Oct. 11 after a bat- at www.crainsdetroit.com/henderson at www.crainsdetroit.com/welch many as 200 new jobs to customers renewing their tle with kidney cancer. He northern Indiana. The pro- policies in the first quarter was 66. DBpageAD.qxp 10/4/2012 3:35 PM Page 1 BUSINESS CAN’T WAIT

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