No-Fault Bill: $1B from Health Care?

20150427-NEWS--0001-NAT-CCI-CD_-- 4/24/2015 6:20 PM Page 1 CRAIN’SReaders first for 30 Years DETROIT BUSINESS April 27-May 3,2015

Surfing garb in LOOKING BACK: the Motor City? The withdrawal of How gnarly bank HQs in Mich. PAGE 3 PAGE 6 No-fault bill: $1B from health care?

sets it collects directly from vehicle Unlimited medical untouched, but payment rates for care are cut owners. The current MCCA would become By Chad Halcom voted 9-6 along party lines Thursday rollback in premium charges. the Michigan Legacy Claims Associa- [email protected] to report two no-fault reform bills, The legislation also establishes a tion and continue reimbursing insur- A proposed overhaul to SB 248 and SB 249, to the House new Michigan Catastrophic Claims As- ers for over-the-cap expenses on Michigan’s no-fault automotive floor, where party leaders are expect- sociation to begin covering all med- policies issued before the new fund insurance law could pull more ed to discuss them further this week. ical costs over a benefits cap on in- takes over claim coverage. The result, than $1 billion of revenue A slightly different version passed surers, which starts at $545,000. This over time, could be one fund that has away from the state’s health the Senate 21-17 earlier this month. fund replaces the current nonprofit billions more in assets than it actually care industry, but it is unclear The bills would cap the amount claim association, which was estab- needs and another that could dra- whether it would save drivers health care providers could bill for lished in 1978 and has more than $18 matically increase premiums if it more money over the long run. services covered under no-fault and billion in accumulated assets to cover The House Insurance Committee provide for a two-year $100 annual claims, and would have only the as- See NO-FAULT, Page 29

The “living office” Beringea backs at Herman Miller headquarters in Holland. The idea: U.K.med device biz Office design should help meet business goals. looking to be local MarxModa LLC wants to sell the By Tom Henderson living office from a [email protected] downtown Detroit According to the Centers for Disease Con- headquarters trol and Prevention, hospital-acquired infec- [HERMAN MILLER INC.] tions are the fourth-leading cause of death in the U.S. A small company in the U.K., with help from a local venture capital firm, wants to help stop hospital germs in their tracks. Ex-biz consultant becomes chair man Backed by $4.5 million in funding by Farm- ington Hills-based Beringea LLC, All In One Medical, which is based in Wolverhampton, With local acquisitions, startup seeks headquarters WorkSquared’s prior owners were Laurie Van- England, has been scouting locations in in Detroit to sell Herman Miller’s ‘living office’ Langevelde and Daniel Rosema; Chris Sowers and Southeastern Michigan for a manufacturing David Daugherty previously owned Facility Matrix facility it wants to have running within a year. By Sherri Welch Group. The plant will employ 35-40 to make its [email protected] Marx has since merged the two companies to patented disposable antimicrobial curtains, For years, Joe Marx sold business management consultant serv- form the state’s sole Herman Miller dealership: room dividers and window blinds for hospi- ices to Fortune 500 companies. MarxModa LLC, retaining a combined 100 employ- tals and medical clinics. Now he’s selling them strategic office designs and Herman Miller ees. The now-Pontiac-based company operates Using the same chemicals that coat the office furniture. Joe Marx: Acquired from sites in Grand Rapids, Kalamazoo, Lansing, curtains and blinds, the company is launch- Through two separate first-quarter deals, Marx and his Grand WorkSquared, Traverse City, Livonia and downtown Detroit, an ing a line of antibacterial powders, soaps and Rapids-based Marx Consulting Group LLC acquired WorkSquared Facility Matrix Group appointment-only showroom in Bedrock Real Es- lotions under the brand name of Fantex. It has Inc. in Novi and Pontiac-based Facility Matrix Group for undis- closed amounts. See MARXMODA, Page 27 See BERINGEA, Page 28

Merging of the Minds We make M&A manageable NEWSPAPER 20150427-NEWS--0002-NAT-CCI-CD_-- 4/24/2015 3:59 PM Page 1

2 CRAIN’S DETROIT BUSINESS // April 27, 2015

sitions. The Mylan offer came after Ⅲ The Blue Water Convention Cen- MICHIGAN two major deals. On March 30, Perri- ter opened this month in Port INSIDE go closed on a $4.5 billion cash, debt Huron south of the Blue Water THIS ISSUE and stock deal for Belgium-based Bridge. The $9 million project is ex- BANKRUPTCIES ...... 18 BUSINESS DIARY ...... 25 Omega Pharma NV, Europe’s fifth- pected to create nearly 250 jobs, ac- CALENDAR ...... 25 largest producer in the continent’s cording to a release. Ⅲ CLASSIFIED ADS ...... 25 $30 billion over-the-counter market. A subsidiary of Uptown Reinvest- KEITH CRAIN ...... 8 In December 2013, Perrigo ac- ment Corp. signed a deal to buy the OPINION ...... 8 BRIEFS quired Dublin, Ireland-based Elan Capitol Theatre in downtown Flint OTHER VOICES ...... 9 Corp. for $8.6 billion. The acquisition and plans to spend an estimated $21 PEOPLE ...... 24 allowed Perrigo, formerly based in million to redevelop and reopen the RUMBLINGS ...... 31 Take-and-bake brand adds troit-based Ilitch Holdings Inc. Allegan north of Kalamazoo, to claim building, MLive.com reported. WEEK ON THE WEB ...... 31 another pizza to portfolio — Natalie Broda Ireland as its headquarters along Ⅲ The Federal Reserve Board ap- with a lower corporate tax rate. proved Chemical Financial Corp.’s pro- Take-and-bake food maker Perrigo board rejects posed $184.1 million acquisition of COMPANY INDEX: Champion Foods LLC in Huron $28.9B bid from Mylan MICH-CELLANEOUS Lake Michigan Financial Corp., MiBiz SEE PAGE 29 Township has added a new brand to Ⅲ Kevin Elsenheimer was ap- reported. Midland-based Chemical its fold of more than 10 private-label Directors at Perrigo Co. plc rejected pointed executive director of the Financial is now the seventh-largest pizza brands —and this one has a a buyout offer from London-based Michigan State Housing Development bank in Michigan based on deposit from the estate of Helen Palmatier, food personality behind it. Mylan N.V., citing the company’s own Authority, according to a release. He market share. The Grand Rapids Press reported. Hungry Girl Originals — the cre- growth potential through product replaces Wayne Workman, who had Ⅲ The board of Battle Creek Un- The gift will fund an endowed pro- ation of Lisa Lillien, a blogger, TV per- development and from business re- been both deputy state treasurer for limited named Marie Briganti its fessorship at the Catholic liberal sonality, author and face behind the lated to past and future acquisitions, local government services and new president and CEO, the eco- arts college and a number of inter- Los Angeles-based Hungry Girl MiBiz reported. Perrigo Chairman MSHDA’s acting executive director. nomic development organization disciplinary degree options. brand — is being distributed in 132 and CEO Joe Papa announced the Ⅲ A proposed $558,000 fine said in a release. She replaces Karl Ⅲ Traverse City ranked No. 4 on Meijer Inc. stores throughout Michi- action during a conference call to dis- against Grand Rapids Plastics in Dehn, who resigned last September. Smithsonian magazine’s list of top gan. The pizzas are designed to be cuss Perrigo’s quarterly results. Wyoming for safety violations would Ⅲ Aquinas College in Grand 20 small towns in the U.S. to visit in low in calories and high in fiber and Mylan’s offer was $28.9 billion or be the largest issued by the Michigan Rapids received a $2.2 million gift 2015. Estes Park, Colo., was No. 1. protein. The pizzas can be found in $82 a share. Occupational Safety and Health Ad- the deli section and retail at $6.99 for “The board concluded that the ministration in more than a decade, Corrections two pizzas. proposal substantially undervalues MLive.com reported. Russell Schar- Hungry Girl pizza has been in pro- the company and its future growth enbroch Jr. was crushed in an injec- Ⅲ A story on Page 4 of the April 20 issue should have said the Detroit duction at Champion Foods for the prospects and it is not in the best in- tion molding press. Zoo plans to invest $100,000 from its capital budget in the biodigester past two years. Peter Smith, national terest of Perrigo’s shareholders,” Ⅲ A company named AP CH-MI, LLC project. The article incorrectly implied that the Michigan Economic Devel- marketing manager for Champion Papa said. “Simply put, the board be- filed a lawsuit alleging that a plant it opment Corp. was contributing that money. Foods, said his team and Lillien met lieves that a continued execution by bought last year, the former Owens- Ⅲ Because of incorrect information supplied to Crain’s, an item in the through a mutual contact in the in- the management team against our Brockway Glass Container Inc. operation April 20 Deals & Details column incorrectly listed Axion RMS Ltd. as a dustry. existing global growth strategy will in Charlotte southwest of Lansing, name change for the Livonia office of Mid American Group Inc. Axion is Champion Foods specializes in deliver superior shareholder value.” contains 5 million pounds of arsenic actually a new company started by former employees of Mid American take-and-bake pizzas, breadsticks Perrigo has grown rapidly in re- and cadmium contamination, the Group. and cookies. It is represented by De- cent years through a series of acqui- Lansing State Journal reported. 20150427-NEWS--0003-NAT-CCI-CD_-- 4/24/2015 6:17 PM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 3

BY THE NUMBERS: THE MICHIGAN ECONOMY

[GLENN TRIEST] How’s this for a business plan, courtesy of Detroit Surf Co. founder Dave Tuzinowski: “I basically made a T-shirt for myself to wear.”His 10-year-old company has since added surfboards and other equipment to its apparel line. Detroit Surf’s up as apparel sales take off Founder rides T-shirt wave, curls into boards

By Bill Shea Board silly. The Detroit Surf Co. [email protected] gets its boards from a place not Detroit native Dave Tuzinowski exactly known for hanging 10. Meet spends a chunk of each year in Maui, Blkbox Surf LLC in Oxford Township, where he has a place and surfs the Page 26 picturesque Hawaiian waves. It’s also where the Detroit Surf Co. off in my head. Why am I not selling was born 10 years ago. these things?” he said. So, when he To stand out from the beach returned home, he trademarked the crowd in their brand-name surf ap- name. parel — Quiksilver, Billabong, Hurley ‘Did for fun’ and O’Neill are the giants — Tuzi- nowski decided to make himself a The Detroit Surf Co. became a unique shirt. real company in 2005, with Tuzi- He opted to mix his hobby and nowski selling on the streets and his hometown and came up with beaches of Maui. the Detroit Surf Co. name. At first, it was simply niche ap- “I basically made a T-shirt for parel, but Tuzinowski later added myself to wear,” Tuzinowski said. actual Detroit Surf Co.-branded “There was no business plan or surfboards and other equipment. business model. It was just some- “It was something we did for fun. thing for me to wear. My nickname It was a part-time thing,” he said. out there is ‘Detroit.’ As soon as I get Tuzinowski’s day job back home off the airplane, five or 10 minutes was running Net Express, the tele- later, I’ll hear, ‘Hey Detroit!’ ” com consulting company he Before long, he was getting asked launched in 1994. about the shirt — so often, in fact, The clothing soon overtook his that it irritated his wife. People time. wanted the shirts. Surfers wanted to “We would carry around a back- know about the Detroit Surf Co. “That’s when the lightbulb went See SURF, Page 26 [LISA SAWYER/CRAIN’S DETROIT BUSINESS] MUST READS of the week... EDITORIAL: Crain’s take on Prop 1 She puts the $ to the X’s and O’s

Perfect, it ain’t. But Proposal 1 may be the best illustration yet that perfect Alison Maki was looking for a change from the world of can be the enemy of “pretty good” — especially when it’s the anti-tax Michi- accounting a decade ago, and she found it crunching gan Legislature setting the parameters of perfection. That’s what’s behind numbers for the Detroit Lions. Today, she’s one of eight Crain’s stance on the ballot proposal to fix the state’s abysmal roads. women who are CFOs in the NFL. Page 8 Page 30 20150427-NEWS--0004,0005-NAT-CCI-CD_-- 4/24/2015 3:57 PM Page 1

4 CRAIN’S DETROIT BUSINESS // April 27, 2015 Bagging the right grocer seen as key for Bloomfield Park site

By Kirk Pinho store immediately south of the is that consumer awareness and ac- [email protected] Bloomfield Park site. ceptance of food that’s better, clean- It’s not quite a “food desert” like Gibbs said the Telegraph market er and less processed is definitely some consider parts of the city of could support another grocer, on the upswing,” he said. “That’s the Detroit to be, but the area sur- which “is a necessary anchor to wave that the Whole Foods of the rounding the failed Bloomfield Park most shopping centers.” world are riding. It’s no longer an development site screams for a new The two plans presented to the area just for the well-to-do.” grocer. development council earlier this In a soon-to-be released report That’s why one of the crucial as- month, plan A and plan B, aren’t called “Food Industry Transforma- pects of the planned $180 million wildly different, minus the grocery tion — The Next Decade,” Tech- redevelopment at Square Lake and aspect. Both include retail and of- nomic says that supermarkets and Telegraph roads will be what type of fice space, medical office space, a supercenters will see their market grocer ends up at the 87-acre site. movie theater, share of retail food sales fall nearly Whether developer Redico LLC restaurants, sen- 10 percent by 2025, losing that to lands a specialty grocer to take be- ior housing, and specialty grocers, club stores, con- tween 30,000 and 40,000 square single-family, venience stores, dollar stores and feet, or a much larger one of be- multifamily and online shopping outlets. tween 120,000 and 140,000 square senior housing. Within three miles, the median feet, will determine exactly how Sandeep Mal- household income is $45,000, while much of the site, rebranded as the hotra, director of within five miles, it’s $53,000 — and Village of Bloomfield, needs to be research and within 10 miles, it’s $65,000, accord- demolished. consulting with ing to data provided last year by The development needs to be Sandeep Chicago-based Robert Gibbs, managing principal approved by the project’s Joint De- Malhotra: food market re- of Birmingham-based Gibbs Plan- velopment Council, a three-mem- Shoppers want search firm ning Group Inc. ber body consisting of Bloomfield healthier foods. Technomic Inc., By 2019, average household in- Township Supervisor Leo Savoie, said shoppers in come is expected to increase to Pontiac Mayor Deirdre Waterman general are trending toward healthi- $88,000, $100,000 and $109,000 in and Dennis Cowan, partner in the er food choices, so a specialty gro- those geographic radius areas, re- Bloomfield Hills office of Plunkett cer would make sense for the Village spectively. Cooney PC. of Bloomfield. For Mark Nickita, co-founder If approved, construction on the “One of the overarching reasons site, which straddles Bloomfield specialty (grocery) has seen growth See Next Page Township and Pontiac, could begin next summer. Examples of specialty grocers include Texas-based Whole Foods Inc. and Phoenix-based Fresh Thyme Farmers Market, which is new to Michigan, while the larger outlet could include something like a Meijer Inc. store, the Grand Rapids-area-based company for which Redico developed its first Detroit location two years ago in the Gateway Marketplace development at Eight Mile Road and Woodward Avenue. Dale Watchowski, CEO, COO and president of Southfield-based Redi- co, declined to identify grocers who have expressed interest in opening a location at the site. “Initially, we had received a great deal of interest from specialty gro- GHDForensicsLLC cers,” he said. “You can probably think of many of them that are in kind of the midsize format.” But he said he has plenty of Experience Expertise. friends in the area who lament having to travel several miles to get to the nearest Meijer or Kroger Co. • Accounting work as it pertains to store. litigation matters “This market is very much un- derserved,” he said. • Representing plantiffs and defendents in Some of the closest grocers are civil and criminal cases Meijer stores in Waterford Town- ship at M-59/Highland Road (six A wholly owned David J. Hammel, CPA, CFE, CFF miles away) and Southfield at 12 subsidiary of: President Mile Road and Telegraph (eight miles); Kroger stores in Bloom- For information regarding the services field Township at Long Lake Road provided by GHD Forensics, LLC, contact +,( David J. Hammel, CPA, CFE, CFF at (two and a half miles) and Tele- '4%7 %(:-7367 [email protected]. graph (five miles) and in Water- ford Township at M-59/Highland and Crescent Lake Road (seven miles); and Trader Joe’s in Bloom- 21420 Greater Mack Avenue | St. Clair Shores, MI 48080 field (five miles). 586-772-8100 | www.ghdcpa.com There is also a Costco wholesale 20150427-NEWS--0004,0005-NAT-CCI-CD_-- 4/24/2015 3:58 PM Page 2

CRAIN’S DETROIT BUSINESS // April 27, 2015 5

From Previous Page and president of Detroit-based ar- THE MILLER LAW FIRM chitecture and planning firm Archive DS and a Birmingham City Changing the Odds in our Clients’ Favor Commission member, the important thing is to attract a grocery tenant that “supple- ments the other development in the area.” “I’m sure that’s what they (Redico) are looking to do, find the right mix of users that Mark Nickita: enhances that as Need to find the an overall desti- right mix of stores. nation for shopping of all sorts,” he said. That’s because some specialty grocers aren’t one-stop-shops, and shoppers may have to make a separate trip for certain items, in some cases. “They are increasingly used to making multiple trips,” he said. “I get XYZ at Trader Joe’s, ABC at Mei- The Miller Law Firm is Recognized as the jer and DEF at Costco.” There are 60,000 people living Leading Shareholder Rights Firm in Michigan within a three-mile radius of the site, while 154,000 live within five Q Shareholder and partnership disputes Q Corporate governance litigation miles, and 630,000 live within 10, according to data provided by Q Minority oppression litigation Q Corporate control contests Gibbs. Detroit-based SmithGroupJJR is the Q &reach oJ ½duciary duty Q Securities fraud and derivative claims architecture firm on the project. A general contractor has not yet been 950 West University Drive, Suite 300 selected. In a joint venture with Cali- fornia-based PCCP LLC in October, Rochester, Michigan 48307 248-841-2200 millerlawpc.com Redico purchased the Bloomfield Park foreclosure rights from San Francisco-based Wells Fargo Bank NA last year.The 1.7 million-square-foot Bloomfield Park development was originally envisioned as a massive mixed-use development including retail space, office space, condomini- Invest Wisely ums and parking. Choose an Advisor Who Sees the Bigger Picture But the project faced financial challenges and Beachwood, Ohio- WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING based Developers Diversified Realty Corp. and New York City-based Coventry Real Estate Advisors bought As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many advisors a 50 percent stake and managing face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. Come discover the control of the park in 2006, the independent difference, where our clients get our best advice, solutions, and products no matter what.Trusted for 75 years. same year the project was moving through the foreclosure process when original developer Craig Schubiner was behind on a $35 million predevelopment loan. Construction was halted at the half-completed, 18-building complex in November 2008. The site remains a hodgepodge of buildings in various stages of completion. Many of the buildings are expected to be demolished starting as soon as the fall, Watchowski said. Southfield-based Farbman Group had been marketing the foreclosure #FSOJF,FOU +% $1" 1'4]+BTPO;JNNFSNBO .#" $-6 $"1].BSD4DIFDIUFS $-6]+PIO4UFJO .#" $'" rights on the property since January #SBE'FMENBO +% $-6]*MBOB-JTT]+FGG7JFEFS]"BSPO)PEBSJ $'1®]+PSEBO4NJUI +% --.]1BVM4OJEFS 2013 and represented Wells Fargo in $ISJT)BMF],FWJO#FBVDIBNQ]-BSSZ-FJC +%]#SJBO:PVOH +% $-5$]$MVOF8BMTI *** the sale. “We’ve gotten a very warm reception from the community on the development plan,” Watchowski said. “Of all the mixed-use develop- ments we are currently doing, this is Contact Schechter to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM by far not the largest, but it’s re- Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY ceived the most attention, and in terms of feedback, the most positive Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated feedback.” Ⅲ with NFPAS. NFPAS does not provide legal or tax advice and is not a Certified Public Accounting firm. SIA is an SEC registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public Disclosure website. Kirk Pinho: (313) 446-0412 Twitter: @kirkpinhoCDB 20150427-NEWS--0006,0007-NAT-CCI-CD_-- 4/24/2015 3:56 PM Page 1

6 CRAIN’S DETROIT BUSINESS // April 27, 2015 Crain’s, April 29, 1985, issue noted LOOKING BACK the opening, with little fanfare, of banking borders in Michigan. More at crainsdetroit.com/30 Freed to finance: Counting the cost of bank expansion,30 years later

Bank execs: No The withdrawal from Michigan complaints over The top 15 banks based on market share, 1996 versus 2014. The banks highlighted in white are headquartered outside Michigan. consolidation Number of state Market Bank Headquarters branches Deposits Share By Tom Henderson [email protected] 1996 “States open bank borders,” read a 1.National Bank of Detroit Detroit 323 $16.25 billion16.23% front-page headline in the April 29, 2.Comerica Bank Detroit 271 $15.80 billion15.50% 1985, issue of Crain’s Detroit Business. A short headline, devoid of drama, 3.First ofAmerica Bank Kalamazoo 380 $11 billion 10.83% with little hint of how much dramat- 4.Standard Federal Bank Troy 140 $8.3 billion 8.16% ic change was about to occur in the 5. Old Kent Bank Grand Rapids 211 $8.2 billion 8.04% world of banking — slowly at first, then with tsunami speed. 6.Michigan National Bank Detroit 204 $7.2 billion 7.05% How much have things changed? 7.Charter One Bank Cleveland 78 $3.2 billion 3.15% It seems quaint now, but until Indi- 8.Citizens Bank Flint 95 $2.7 billion 2.62% ana, Ohio and then Michigan legis- lators allowed their banks to do 9.Huntington Bank Columbus, Ohio 43 $1.8 billion 1.79% business in neighboring states, state 10.Great Lakes Bancorp Ann Arbor 54 $1.4 billion 1.40% law prohibited banks in Michigan 11.First Michigan Bank Zeeland 25 $1.1 billion 1.04% from having branches more than 25 miles from their headquarters. 12.D&N Bank Houghton 37 $950 million 0.93% Dennis Koons, president and CEO 13.Monroe Bank & Trust Monroe 19 $742 million 0.73% of the Lansing-based Michigan Bankers Associa- 14.Republic Bank Owosso 23 $703 million 0.69% tion, said that in 15.KeyBank Cleveland 37 $644 million 0.63% some ways, the law was a relic of the horse-and- 2014 buggy days, 1.Chase Bank New York 299 $37 billion 20.90% when it might 2.Comerica Bank Dallas 215 $25.8 billion 14.61% have taken several days to travel 3.PNC Bank Pittsburgh 223 $15.6 billion 8.81% Dennis Koons: that far, and also 4.Fifth Third Bank Cincinnati 248 $13.8 billion 7.79% Consolidation wave a result of a regu- 5.Bank ofAmerica Charlotte, N.C. 157 $13.2 billion 7.45% continues today. latory emphasis after the Great 6.Huntington Bank Columbus, Ohio 167 $8.3 billion 4.71% Depression that many small banks 7.Flagstar Bank Troy 106 $6.9 billion 3.87% were better for the system than larger banks because any failures would 8.FirstMerit Bank Akron, Ohio 140 $5.3 billion 3.02% be easier for the new Federal Deposit 9.Chemical Bank Midland 158 $5.2 billion 2.96% Insurance Corp. to cover. 10.Charter One Bank Providence, R.I. 98 $4.5 billion 2.57% Today, you can be sitting in a hut in Tahiti, take a photo of a check 11.Wells Fargo Bank San Francisco 19 $2.5 billion 1.41% and deposit it into your account, 12.TCF National Bank Wayzata, Minn. 53 $2.5 billion 1.10% which you opened in a metro De- 13.Mercantile Bank Grand Rapids 54 $2.3 billion 1.31% troit branch of a bank headquartered in San Francisco. 14.Talmer Bank and Trust Troy 36 $2.1 billion 1.17% It wasn’t until 1997 that federal 15.Independent Bank Ionia 73 $1.9 billion 1.10% legislation opened interstate bank- Source: Federal Deposit Insurance Corp. ing across the entire U.S., the result of the Riegle-Neal Interstate Bank- ing and Branching Efficiency Act of “We’d like to see the headquar- in the state had eagerly entered the 1994. The “Riegle” part of the act ters of the survivors in Michigan.” large Chicago market, catching the was for Donald Riegle, the U.S. sen- Just the opposite happened. In locals more or less unaware. ator from Flint who was chairman 1985, all banks in Michigan were The piece began with a profile of of the Senate Banking Committee. based here. In 1996, only three of the the late Charles “Chick” Fisher III, the But interstate banking restrictions 15 largest banks in Michigan were chairman and CEO of Detroit-based had begun moving that way in 1985. based elsewhere, all in Ohio. NBD Bancorp, the holding company As the Crain’s story was published, By last June, eight of the 10 largest for the National Bank of Detroit. state bankers were lobbying legisla- banks in the state were headquar- “From his office in Detroit, the tors to allow them the same freedom tered in other states. (See chart.) auto-dominated city where eco- that bankers in Indiana now had. nomic greatness seems the province Gobblers become the gobbled “Indiana has legislation, and let’s of days gone by, Fisher controls a assume Ohio is next,” Crain’s quoted For a while, though, expansion banking company that is not only Donald Heikkinen, then senior vice by Michigan banks worked out as the largest in Michigan but one of president of the Michigan Bankers executives had hoped. the fastest-growing in Illinois. Association. “Banks in those states A story in the Chicago Tribune on “Across Michigan, in a converted could get big first. If this happens, it Aug. 18, 1991, carried the headline YMCA, Daniel R. Smith runs $14 bil- would be very important for Michi- “Michigan banks find Illinois ripe for gan to be there right away. picking” and detailed how bankers See Next Page 20150427-NEWS--0006,0007-NAT-CCI-CD_-- 4/24/2015 3:56 PM Page 2

CRAIN’S DETROIT BUSINESS // April 27, 2015 7

From Previous Page and the Bank of Ann Arbor, and banks ment to the state despite a head- that were founded just before the re- quarters now in Dallas. lion First of America Bank Corp., the cession, had no bad loans and have “I can only speak for Comerica, sixth-largest player in Illinois banking, been thriving, such as Troy-based but we’re dedicated to stewardship,” from Kalamazoo, a town of 80,000. Talmer Bank and Trust or Farmington Ritchie said. “We employ 5,000 peo- “Why have these Michiganders Hills-based Level One Bank. ple here, we provided 48,000 hours become such powers in Illinois “There’s no question that a small of community service in Michigan banking? Because Illinois waited too bank in Ontonagon can tailor a fi- last year, and we were a top six giver long to make a break with the past, nancial product for a customer or to United Way.” said the bankers and other analysts.” for its community better than a Sandy Pierce, vice chairman of But just as Michigan banks began bank with a larger footprint can do,” FirstMerit Corp. and chairman and gobbling up Chicago banks in the Koons said. CEO of Southfield-based FirstMerit 1980s, national and large regional David Sowerby, chief investment Michigan, said that if large, regional banks starting buying our banks in strategist in the Bloomfield Hills of- banks are less receptive to small the mid-’90s, a trend that continues. fice of Loomis Sayles & Co. LP, agreed commercial bor- NBD was founded in 1933, then that consolidation has been good for rowers and less a owned equally by General Motors consumers. But he also thinks the force for philan- Corp. and the U.S. government as community has lost something by thropy or civic part of an effort to stabilize the bank- having fewer local bank CEOs. duty, then her ing industry during the Depression. “I’m a free-market guy and sup- bank is the ex- In 1995, the bank announced port the deregulation that has taken ception. that it was being bought by the First place. The economy and the con- “The magic to National Bank of Chicago, which was sumer have benefited,” Sowerby me is to have later bought by Chicago-based Bank said. “The piece I lament is the ab- Sandy Pierce: customers feel One Corp., which was later bought sence of the significant CEO or “We put decision- like they’re with by J.P. Morgan Chase & Co. chairman at the major lenders here makers in every a local bank,” In 1997, Cleveland-based Nation- in the 1980s and early 1990s, like market.” she said. “We al City Corp. bought First of Ameri- Dean Richardson at Manufacturers have $25 billion ca, and in 2008, Pittsburgh-based Bank, Don Mandich at Comerica, in assets, but we put decision-mak- PNC Financial Services Group Inc. Chick Fisher at NBD, Tom Ricketts ers in every market.” bought National City. at Standard Federal. As for community involvement, More recently, in 2013, Akron, “I recognize that Comerica has a Pierce chairs the Henry Ford Health Ohio-based FirstMerit Corp. bought regional president and that Chase System board and is on the boards Flint-based Citizens Republic Bancorp has a regional president, but there’s of the United Way for Southeastern Inc. Last year, Evansville, Ind-based still a lack of the kind of C-level exec- Michigan, Downtown Detroit Part- Old National Bancorp bought Ann utives who influence corporate giv- nership, Detroit Riverfront Conser- Arbor-based United Bancorp Inc. ing and corporate policy. ” vancy and College for Creative Stud- In 1985, there were about 14,000 ies and was chairman of the Detroit CHOUETTE MARKETING Big banks defend local TLC banks in the U.S. and 361 banks Financial Advisory Board during the Marketing headquartered in Michigan, said Michael Ritchie, Michigan mar- recent bankruptcy of the city. Ⅲ Koons of the Michigan Bankers As- ket president of Comerica Bank, Tom Henderson: (313) 446-0337 sociation. Today, there are about praised his company’s commit- Twitter: @TomHenderson2 6,000 banks in the U.S., with 110 based in Michigan. “We continue to see a wave on consolidation as we speak,” Koons said. What’s gained and lost For the most part, local bankers 30+ showrooms | endless possibilities and industry watchers don’t be- moan the lack of Michigan-headquartered banks or the trend of ZOYES CREATIVE GROUP consolidation. “It’s been for the benefit of con- Creative sumers,” Koons said. “It’s brought greater efficiencies and greater market presence. “In 1985, if you worked downtown and lived more than 25 miles away, you probably needed two

banks if you wanted to cash your Rozmallin, suite 60 check on your lunch hour.” Duralee, suite 38 John Donnelly, managing director of the Grosse Pointe investment bank Donnelly Penman & Partners, BIG BEAVER (16 MILE) which focuses on the banking industry, said consolidation and the presence of large national and regional banks have been good for

consumers and businesses. MAPLE (15 MILE) STUTZ SIGNATURE ASSOCIATES Large banks can provide services WO Leasing/Management such as wealth management and OD large commercial loans that smaller WARD CROOKS banks can’t. “They do quite a good COOLIDGE job of serving their large cus- RJ Thomas, suites 77, 80, 82 & 90 14 MILE tomers.” Donnelly said. “The middle-market guy that needs to borrow half a million, he FURNITURE | FABRICS | WALLCOVERING | ARTWORK | FLOORING might have a tough time getting per- LIGHTING | TILE | KITCHENS | PLUMBING | ACCESSORIES sonal service at a big bank. But that’s where you give community banks credit. They’re pretty ferociously 1700 Stutz Drive | Troy, MI 48084 | 248.649.4772 competing for that business.” M - F | 9AM - 5PM | Open to the public That includes established com- michigandesign.com munity banks that weathered the recession in good shape, such as St. Clair Shores-based First State Bank 20150427-NEWS--0008,0009-NAT-CCI-CD_-- 4/24/2015 3:59 PM Page 1

8 CRAIN’S DETROIT BUSINESS // April 27, 2015 CRAIN’S LETTERS DETROIT BUSINESS Crain’s print redesign brings out best in content

Editor: troit is attracting a diverse and var- I am a longtime subscriber to Send your letters: Crain’s Detroit ied populace to downtown and the Crain’s, both in Cleveland and De- Business will consider for vicinity, it would troit. After reading another sub- publication all signed letters to the be appropriate OPINION editor that do not defame scriber’s vote against your new print for the new di- design (“A vote against Crain’s print individuals or organizations. Letters rector to relate redesign,” April 20, Page 8), I decid- may be edited for length and clarity. culturally to the Not pretty, but ed to weigh in with my vote for your Email: [email protected] residents. new print design. In that regard, The new design is fresh, offering here are some the very best in local and national count my vote for the new look. questions I news coverage. Jim Schmitz Graham Beal: To would include in Prop 1 could work I do not see the writer’s refer- Troy retire, along with his the interview ence to Crain’s as a New York-style bow tie. process: “If you tabloid to be accurate. Your new Ideas to clip on interview were to emulate hen it comes to Proposal 1 on the May 5 ballot, it’s font, spacing, topic headlines, or- for DIA director’s successor the previous director, would you be tough to say the measure is absolutely the best so- ganization and pictures bring out tying your own bow tie or would it W lution to Michigan’s road-funding headaches. the best in the publication and Editor: be a clip-on?” And, “in the classic Perfect, it ain’t. But perfect can be the enemy of “pretty good.” stories. I find it easy to read with We recently learned that Graham art portrait, ‘Dogs Playing Poker,’ An anti-tax fever in the state Legislature prevails, so think- an updated look and feel. Beal, the director, president and CEO can you name the breed of the dogs As for the references to issues of the Detroit Institute of Arts, will re- and the card game they are playing a “no” vote will somehow force lawmakers to come up with your ads, I again disagree tire on June 30 after 16 years at the ing?” with a better plan is not realistic. It’s simply difficult to find $1 with the writer. The ads present helm. During those years, bow-tie Of course, candidates will come billion or more a year in the current general fund budget; the the look and message the buyer clad Beal has elevated the quality and forward with extensive credentials bulk of state spending is in earmarked programs that don’t desires, not those of your publish- solid reputation of the DIA, and it will and artistic accomplishments, but allow dollars to transfer to other uses, such as road fixes. er or editor. I enjoy reviewing the be difficult to replace his energy and us common folk hope he or she will ads to get a better feel for the artistic prowess. still be able to share a coney dog Some basic facts bear repeating: companies that feel advertising One can only speculate on what with us sometime in downtown De- First, Michigan spends less on roads, per capita, than just with you provides a positive re- the board is looking for in a replace- troit even with a clip-on bow tie. about any other state. Using 2010 census figures for population, turn. ment, but as such I would like to Bill Kalmar the amount spent, by one estimate, is $154 per person per year. Keep up the great work and offer my suggestion. Perhaps as De- Lake Orion State transit officials say that compares with $530 for Pennsyl- vania, $412 for Illinois, $302 for Wisconsin, $239 for New York, TALK ON THE WEB $289 for Indiana, $275 for Minnesota and $214 for Ohio. Second, the status quo is not an option. Fuel consumption Re: Feds sue Quicken Loans, Reader responses to stories and Re: Midwest Steel’s $50.7M is dropping and, hence, so are fuel tax dollars earmarked for allege improper FHA lending blogs that appeared on Crain’s leads pacts for hockey arena roads. And the sales taxes currently charged to fuel do not go website. Comments may be edited to roads but to schools and local government. The Justice Department is only for length and clarity. Projects like these only help the but one federal agency that is out of city. I don’t understand how every- Meanwhile, delay and disrepair are dangerous. The pro-Prop control. Thankfully, Quicken seems one is so anti-new arenas. You’re 1 campaign has cataloged the safety risks. Just wait for a mishap intent on challenging the legal his ability to appear personable, his turning empty garbage land into — a chunk of concrete through a windshield of a family visiting thugs. To do that takes courage and recognition outside of Michigan prime real estate that will generate Pure Michigan — to see a steep drop in out-of-state visitors. a ton of money (as the feds just and Michigan’s political influence in money through property taxes and Let’s remember: Tourism is one of the state’s leading industries. print their money as needed). the country. I do hope that he fol- income taxes. This suit likely has more to do lows through on the dream. Getting This will lead to more develop- In exchange for higher wholesale fuel taxes, the sales tax with hurt feelings at the Justice De- him out of Michigan for a bit would ment in other areas (Brush Park), will be eliminated on fuel sales. The increase in the sales tax partment or to do with some lawyer help our GOP Legislature to reset leading to more tax money. More makes up for the dollars that otherwise would flow from fuel trying to get a promotion by taking their standards back to the platform tax money for the city equals more sales to schools and local governments. down a successful company. they are supposed to represent. money to spend elsewhere (police And for low-income residents who will bear the brunt of a – William J — Janice Dillaha and schools). It’s literally a win- win. sales tax increase, the proposal increases the state’s Earned Re: Snyder dodges direct City Council OKs zoning change Sure, taxpayers will front some of Income Tax Credit and a homestead property tax credit for question on presidential bid for Red Wings arena the bill through various govern- low-income seniors and adults with disabilities. ment institutions, but the city of It isn’t the prettiest resolution. But it can work. We join If it is true that he is inclined to run It’s good to see the Detroit City Detroit I think only lost the land other voices, from the Small Business Association of Michi- for POTUS, I would say Mr. Snyder Council and Olympia finally got it when it sold it to the Ilitches for done. With M-1 Rail and all the new gan to the chambers of commerce in Detroit and Grand overestimates his role in changing the something like $1. Pretty much it’s a economic climate in Michigan. development going on, can’t wait free stadium for the city. Rapids and area elected leaders ranging from Detroit Mayor He overestimates his command for everything to come together in — Nino Mike Duggan to Oakland County Executive L. Brooks Patter- of geopolitical issues. He overesti- 2017. Keep moving Detroit forward! son, in supporting Proposal 1. mates his ability as a public speaker, – Jeff Keathley See TALK, Page 9 Let’s not rush to judgment on Quicken Loans

I have no doubt that there will be wait for the facts to emerge over the The only thing you know for cer- nothing more than that. If and when a lot of folks who, for whatever rea- next few months or even years. tain is that Quicken Loans’ profits will the feds are able to convince and KEITH CRAIN sons, are convinced that the only Right now, the federal govern- diminish after they finish hiring and convict, we’ll all know about it in a big way Quicken Loans got so big and ment, with a track record of vindic- paying lawyers to present their side way. I am sure that the feds will make ast week the U.S. Department successful is that it was doing some- tive actions from departments like of whatever the case turns out to be. sure that we all are kept up to date in Lof Justice sued Quicken Loans thing wrong. the IRS and other places, doesn’t This is a story that will last a very a public forum during their lawsuit. for making a lot of bad loans over a I am equally sure that there are have a good level of credibility with long time. These sorts of accusa- If history is any indicator, these four-year period. just as many folks who are con- the nation. tions from the federal government cases are usually shades of gray The week before, obviously in an- vinced that this is nothing more than Dan Gilbert, with his astounding usually take months and years to rather than black or white. There will ticipation of the Justice Depart- a witch hunt on the part of the feder- success over the last decade, is a adjudicate, and I am sure that this be plenty of speculation as to the ment’s lawsuit, Quicken Loans had al government and, for whatever rea- natural target for the feds. one is not going to be any different. guilt or innocence of Quicken Loans. sued the federal government to sons they, the feds, are wrong. All of this makes for a great soap In the meantime, we should all re- We would all be wise to assume quash any charges that they, the I think that everyone should opera, but it will take time to figure member that an accusation, even innocent until proven otherwise. feds, were contemplating. probably take a deep breath and out what’s really going on. from the federal government, is Time will tell. 20150427-NEWS--0008,0009-NAT-CCI-CD_-- 4/24/2015 11:32 AM Page 2

CRAIN’S DETROIT BUSINESS // April 27, 2015 9 New for-hire vehicles must be subject to transportation laws

transportation is not new. GPS, mo- to be protected by state regulations Current licensing rules and regu- should be applied to all. Senate Bill bile phone-based trip booking and requiring vehicle safety inspections lations — known as Red Wing laws 184 has been introduced to amend wireless handheld computers have and adequate commercial personal — were developed to protect the the Limousine Transportation Act OTHER VOICES been used for years by limousine injury and property insurance cov- public after the devastating limou- to allow big cities to regulate TNC Matt Oddy and taxi companies in local markets erage — just as traditional taxi and sine crash of Detroit Red Wings star vehicles as limousines. and around the world. limousine companies are. Vladimir Konstantinov in 1997. The Criticism that the legislation re- Matt Oddy is operations manager for Would an airline be able to ignore Claiming they are not operating limousine he was riding in was stricts free trade and creates barriers Checker Cab, Detroit Federal Aviation Administration commercial vehicles because of the being driven by an unlicensed driv- to entry in the market is untrue. The flight rules or operate unlicensed if way customers contact them via er with a suspended license. legislation does not implement a sin- s companies like Uber and Lyft its passengers used a phone appli- cellphone, TNC drivers currently The state in December 2013 is- gle new state regulation on TNC driv- Amake inroads into Michigan’s cation to purchase tickets? Of carry only personal insurance poli- sued an order to stop vehicles and ers or vehicles. It simply requires that for-hire passenger transportation course not. Yet TNC vehicles and cies. However, for-hire transporta- drivers from violating the law, but existing laws be equally applied to all market, it’s important to make sure drivers are allowed to transport pas- tion is universally recognized as a for unknown reasons it has not en- for-hire transportation providers, in- that the state’s for-hire transporta- sengers in Michigan without a commercial activity, which would forced it. This is blatantly unfair. If cluding TNC drivers and vehicles. tion laws are being applied fairly chauffeur’s license. That’s simply automatically invalidate the policy the state isn’t going to enforce the For-hire drivers and passengers and equally to all companies. wrong — and dangerous. and potentially leave injured drivers, rules for some for-hire transporta- will all be safer when the law is ap- The state regulates for-hire pas- Drivers and passengers deserve passengers and pedestrians at risk. tion providers, the same leniency plied equally to all. senger transportation through the Limousines Transportation Act 271 of 1990 and the Michigan Vehicle Code. All vehicles transporting passengers are defined as limousines under the law and must have a commercial license plate. Drivers are required to have a chauffeur’s license. To differentiate themselves in the market, limousine companies have come up with clever marketing la- bels such as black car, luxury sedan, stretch limousine, limo taxi and now transportation network company, as Uber and Lyft call themselves. Regardless of how the vehicle or service is marketed, they are all transporting passengers, using a IT’S NOT HOW WELL THEY WORK FOR US. form of limousine, and being driven by a chauffeur. TNCs like Uber and Lyft, however, IT’S HOW WELL THEY WORK FOR YOU. claim that Michigan law doesn’t apply to them — that they are not commercial vehicles because they use a technology-based business model (primarily a mobile phone application enabling passengers to Eric W. Dietz Shari Krasinski, CTP, CPCP connect with drivers via the Inter- SVP, Regional Manager SVP, SaleS Manager net). Obviously, that argument defies Private Client Group Treasury Management common sense. Using technology in oFlCe oFlCe Cell Cell SHariKraSinSKi HUnTingTonCoM TALK ON WEB eriCDieTZ HUnTingTonCoM

From Previous Page Re: Bankruptcy judges express Brian Marshall Brad Norman regret on absence of cameras SVP, #oMMerCial Region Manager SVP, MiCHigan Regional SaleS Manager Middle Markets Auto Finance & Dealer Services What about regret in regard to re- oFlCe oFlCe ducing the pensions of old people. Cell Cell What a noble thing to do. Just like BrianMarSHall HUnTingTonCoM BraDnorMan HUnTingTonCoM fighting “Bambi.” — Carolyn Mazurkiewicz

Re: Belle Isle sports fields to be Terrance B. Pryor Scott Wolffis renovated in federal effort SVP, Regional Manager SVP, !rea Manager oF MiCHigan Commercial Real Estate Business Banking Does it make sense to send tax dollars to D.C., then the bureaucrats oFlCe oFlCe there take their cut for overhead Cell Cell and then those dollars go to fix a TerrYPrYor HUnTingTonCoM SCoTTWolFlS HUnTingTonCoM park on Belle Isle? All that for $325K. Exhibit X of a broken system. — William J

Re: Legislature not convinced on aid for schools with deficits When are we going to stop bailing out Detroit? They, and every other school district, need to live within their budgets ... just as the taxpayers The Huntington National Bank is an Equal Housing Lender and Member FDIC. and Huntington are federally registered service marks of who support them must do. Huntington Bancshares Incorporated. Huntington. Welcome. is a service mark of Huntington Bancshares Incorporated. 2015 Huntington – Louise Braun Bancshares Incorporated. 20150427-NEWS--0010-NAT-CCI-CD_-- 4/24/2015 12:04 PM Page 1

10 CRAIN’S DETROIT BUSINESS // April 27, 2015 Desmond buys Price Detroit, we’re In Your Corner.® Funeral Home in Troy

By Bill Shea [email protected] Longtime Troy-based funeral home A.J. Desmond & Sons Funeral Di- rectors last week bought the Price Fu- neral Home, giving Desmond three locations. The addition of Price will add 165 to 175 funerals to the 850 handled annually by Desmond’s Troy and Royal Oak locations, said Terry Desmond, president of A.J. Desmond and son of its founder and namesake. The Price Funeral Home, in Troy, is being rebranded as the A.J. Desmond & Sons Price Chapel. Desmond will spend about $300,000 to refurbish the 30,000- square-foot Price facility in coming months, including new landscap- ing, improved building access, re- modeled restrooms, lobby enlarge- ment and the addition of a Summer 2015 merchandise selection area for urns, markers and remembrance items. ■ Detroit ■ Novi ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing The Price Funeral Home was founded in Troy in 1955 by William Price. He died in 2010 at age 79, and his wife, Susan, has since operated the business on the west side of Rochester Road between Big Beaver and Wattles roads. “We were much more colleagues than competitors,” Desmond said of William Price. The Desmond family — six are Your trusted support team part of the funeral home business — was seeking to expand when Susan Price approached them a year ago to discuss a potential sale. Lean on us to help you go the distance. “She just decided it was time for her to move to a different phase of her life,” Desmond said. “This was the right opportunity. It was a com- Our team consists of professionals who can provide ing together of two very similar cul- strategic business planning, consultation and solutions tures.” in many areas, including: A sales price wasn’t disclosed. Desmond declined to discuss rev- • Accounting and tax preparation enue, but the median cost of a casketed funeral in the U.S. in 2012 was • Tax planning, minimization and consulting $7,045, the most recent data avail- • Fraud and forensic accounting able from the National Funeral Direc- • Succession planning tors Association. Michigan this year is forecasted to • Litigation support have a 41.5 percent burial rate and 56.7 percent cremation rate. The Contact me today to learn more. median charge for cremation with a non-casketed service in 2013 was $3,250, NFDA data shows. There were 19,486 U.S. funeral Rod Byrne, CPA, CVA, CGMA homes operating in 2014, a decline of nearly 10 percent since 2004, ac- Principal cording to the National Directory of [email protected] | 734.761.2005 Morticians Redbook. Desmond traces its roots to the A.J. McInnes Funeral Home, a former funeral home in Highland Park. McInnes employee Albert Desmond eventually took it over, and it adopt- Detroit, Ann Arbor, Farmington Hills, Troy ed its current name in 1973 when it opened its first Troy location. Ⅲ rehmann.com | 866.799.9580 Bill Shea: (313) 446-1626 Twitter: @Bill_Shea19 20150427-NEWS--0011-NAT-CCI-CD_-- 4/24/2015 12:23 PM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 11 SPECIAL REPORT

CHAD HALCOM Reporter’s Notebook WEB: crainsdetroit.com/halcom TWITTER: @chadhalcom LAW Settlements grow GENERAL AND IN-HOUSE COUNSEL AWARDS in price-fixing suits Public companies, revenue Civil settlements recently have over $1 billion exceeded $260 million in a sprawl- WINNER: Kirsten Hewitt, Whirlpool ing Detroit lawsuit alleging more Corp., this page than a decade of price-fixing in FINALIST: Carlos Herrera, General the auto supply chain. Motors Co., Page 12 U.S. District Judge Marianne [PIERRETTE DAGG/CRAIN’S DETROIT BUSINESS] Battani this month gave prelimi- Private companies over nary approval to a deal for TRW Au- $1 billion tomotive Holdings Corp. and Ger- man affiliate TRW Deutschland WINNER: Lois Bingham, Yazaki North Holding GmbH to settle for $8 mil- America Inc., Page 13 lion with direct purchaser plaintiffs, The litigator FINALIST: Janet Kelley, Meijer Inc., Page 13 which are other auto companies who allegedly bought components Pro bono at colluded prices. Since February, WINNER: Michelle Busuito, SMART, Hitachi Automotive Systems Ltd. Page 14 Panasonic Corp and . have also FINALIST: William Coughlin, Ford Motor agreed to pay nearly $83 million Co., Page 14 combined to settle with dealership as innovator and consumer plaintiffs. Private companies, revenue TRW previously agreed to pay $100 million to $1 billion $7.1 million to dealerships and A general counsel must be a master of more than just law consumers in settlements late last WINNER: Daniel Follis Jr., Compuware year. The new settlement resolves Corp., Page 15 litigation for three major classes of orporate attorneys worry about a lot more Rising star plaintiffs. than the law. Suppliers Yazaki Corp., Lear Questions like these are constantly crossing WINNER: Sean Etheridge, Stryker Corp., GC Page 16 Corp., Autoliv Inc. and Nippon Seiki their minds: Co. Ltd. and TRW already had C Can marketing use this photo? FINALIST: Christina Flint, Diplomat agreed to more than $187 million Pharmacy Inc., Page 16 of combined settlements. Is our company’s information protected sufficiently? Allegations of global supplier Are the purchasing orders taking the future of the price-fixing dating back to at least economy, and potential downturns, into account? The people profiled on these This year’s judges 2000 first drew public attention Those are just few of the questions that keep general pages will be recognized at a Jocelyn Benson, dean, Wayne State FBI after the in February 2010 raid- counsels and their teams up at night. They do the work of special event in their honor University Law School ed Yazaki North America’s offices June 10 at the Westin Book worry, and scenario-planning, for so many segments of Latrina Edwards, assistant general counsel, in Canton Township, along with Cadillac Detroit. Read Auto Club Group; president, Michigan chapter, the Southfield offices of Kariya, many companies. Their efforts focusing on business more about the event Association of Corporate Counsel Japan-based Denso Corp. and strategy, integrated with legal knowledge, is at the heart of on Page 17 or at Tokai Rika Group North America in the fifth annual Crain’s General Counsel of the Year awards. crainsdetroit.com/gc Robert KurnickJr., president, Penske Plymouth Township. After accepting nominations from across Michigan, Corp. The Japan Fair Trade Commis- these winners were picked by Crain’s editors with the advice of a judging team made Bernie Lourim, corporate counsel, Fanuc sion also around the same time Robotics America Inc. raided the offices of Furukawa Elec- up of executives and lawyers able to offer many perspectives on what defines tric Co. Ltd., the first of 34 compa- excellence in an in-house attorney. Wendy Richards, director of legal and nies to plead guilty to U.S. criminal This year’s winners, profiled on Pages 11-16, represent stories of innovation and policy programs, Michigan Community charges since 2011 at federal creativity. Yes, they are lawyers — but they are also part of the company’s Resources courts in Detroit and elsewhere. leadership team when it comes to strategy. Those companies have agreed to nearly $2.5 billion in criminal fines, but the civil case in Detroit has compiled claims from around the n an evolving global business that’s WINNER: Public companies improving distribution and making costs U.S. on behalf of classes of au- Ibrought Whirlpool revenue just under over $1 billion in revenue more competitive, Hewitt said, in tomakers, dealerships and the busi- $20 billion, Kirsten Hewitt — and a law comments sent by email. nesses and consumers who bought department staff of nearly 200 around Kirsten Hewitt The Indesit acquisition, she said, “was cars with parts made at alleged col- the world — help the home appliance a tremendous strategic fit for us, more luded prices. Some government Age: 50 agencies and trucking companies company navigate change, challenges than doubling our presence in the and opportunities. Title: Senior vice president, corporate affairs, world’s largest appliance market. The fit are also plaintiffs. general counsel and corporate secretary, In the latest settlements, Pana- This past year, that’s Whirlpool Corp., Benton Harbor is also good in terms of complementary sonic resolves legal claims involving included closing the products, brands and distribution Recent achievement: She and her staff helped its alleged role in setting prices for $551 million acquisition networks.” automotive switches, steering angle close international acquisitions of two major sensors and lighting controls, while of a 51 percent stake in home appliances manufacturers, and with outside “Our mission is to use our leadership Hitachi’s settlements cover claims China-based Hefei counsel won a verdict in an Ohio class-action and legal expertise to create outcomes for inverters, starters, fuel injection Rongshida Sanyo lawsuit. that deliver a strategic and competitive systems and other components. Electric Co. Ltd., and advantage for Whirlpool by protecting TRW’s latest settlement covers $1.4 billion in stock S.p.A., based in Italy. the company and advancing the suppliers or OEMs who purchased acquisitions to give a Whirlpool The Hefei Sanyo acquisition, for company’s strategy,” she said. safety systems components from the company since January 2003. subsidiary ownership of Indesit Co. example, impacted the company by See HEWITT, Page 12 20150427-NEWS--0012-NAT-CCI-CD_-- 4/24/2015 11:20 AM Page 1

12 CRAIN’S DETROIT BUSINESS // April 27, 2015 SPECIAL REPORT: LAW – GENERAL AND IN-HOUSE COUNSEL AWARDS

FINALIST: Public company with arlos “We really changed the strategy Herrera said. “It’s important to go revenue over $1 billion CHerrera around our innovation by back and find whether you should HEWITT, has been on the identifying patents best suited to be spending money to maintain a Carlos Herrera job at GM for be secured as trade secrets instead patent or use that money to from Page 11: only seven of through the patent office, which leverage our position with other Age: 53 months, but is expensive,” Herrera said. “We patents.” Whirlpool’s global law Title: Chief intellectual property he’s already minimized a lot of patents that Herrera also served as in-house department played key roles at counsel, General Motors Co., examining the weren’t providing much more counsel for Boeing Co., Tyco every stage of the recent projects, Detroit Detroit automaker’s patent value, and we were able to really International Ltd. and others. including up-front strategy and portfolio to establish a game plan. see a cost reduction attached to Herrera, a native of Cuba, due diligence, negotiations, Recent achievement: Before The intellectual property our portfolio.” provides executive mentoring to antitrust clearance, governance, joining GM late last year, Carlos attorney is well-versed in right- Herrera said companies often minorities as part of the National compliance work, Herrera led the intellectual property sizing portfolios — identifying protect IP long after the patent is Society of Hispanic MBAs. communications, and integration legal strategy for Toledo-based which patents to protect and those useful, as happens when a new He earned a bachelor’s degree planning and implementation, Owens Corning Corp. There, he that should be allowed to lapse. technology eclipses the patent. in aeronautical engineering from Hewitt said. examined its parent portfolio and At Owens Corning, Herrera “There’s a lot of money spent on Embry-Riddle Aeronautical Last year, the law department reduced IP protection spending by identified which patents to protect legal fees and outside counsel, and University and a law degree from and outside counsel won a verdict, millions of dollars. and which to forgo, a complex and every time there’s a debate with the University of Toledo. which has since been appealed, in delicate matter, he said. the patent office, a fee is attached,” — Dustin Walsh a class-action case in Ohio involving certain models of front- loading Whirlpool washing machines. The complaint, brought on behalf of about 150,000 Ohio residents, alleged that Whirlpool manufactured and sold machines Global Perspective. that were defective. The defect, according to the complaints, was that they accumulated mold and could not clean themselves National Strength. adequately, causing consumers to take actions such as running extra cleaning cycles, leaving the door open between uses and scouring the washer after every use with Midwest Values. bleach. Whirlpool saw the case as an overly broad “no injury” class action in which the claims lacked merit and were important to litigate rather than settle. “These types of no-injury class actions are particularly dangerous to all manufacturers — not just Whirlpool — as they try to turn the most routine functions, like household maintenance or use and care habits, into multimillion-dollar paydays for class-action lawyers,” Hewitt said. “It is vital that we do our part to fight against these kinds of cases that create an unfair burden for manufacturers and, ultimately, their customers.” — Amy Lane

For well over a century, Dykema has provided exemplary legal and consulting services to North America’s greatest companies, large and small. As our clients have grown, so have we, expanding from modest Midwestern roots to become one of the nation’s largest law firms, with offices from coast to coast. With “These types of vast resources at the ready, our full-service team of lawyers works closely with our clients to help them achieve success. no-injury class actions are To point your business in the direction of exceptional and efficient service and outstanding results, please contact Peter Kellett, Chairman and Chief Executive Officer, at [email protected] or 313.568.6800. particularly dangerous to all manufacturers — not just Exceptional service. Dykema delivers. Whirlpool — as they try to turn the most routine functions ... into multimillion- dollar paydays for class-action www.dykema.com California | Illinois | Michigan | Minnesota | Texas | Washington, D.C. lawyers.”

CRAIN’S DETROIT BUSINESS // April 27, 2015 13 SPECIAL REPORT: LAW – GENERAL AND IN-HOUSE COUNSEL AWARDS

WINNER: Private company, reductions but also to expedite “My team knows in North America, and added agreed to pay a $470 million fine for revenue over $1 billion business. the company and specialized in-house attorneys to its role in a price-fixing scheme Lois Bingham embraced that idea handle the day-to-day operational related to wire harnesses. Lois Bingham when she was promoted to the business. needs of the supplier. Since then, Bingham has lead Yazaki’s legal operations They are Bringing more of the work in- established a regionwide Age: 47 across North and Central house cut Yazaki North America’s compliance program that extends far Title: Vice president, general counsel, America in 2012. able to be spending on outside counsel — beyond antitrust matters, she said. secretary and compliance officer, Yazaki As she set out to create an proactive which was reduced 58 percent in the “A lot of (compliance) functions North America Inc., Canton Township appropriate department for 2014 fiscal year from 2013. were decentralized, and we needed its growing base in the region, instead of “Outside of salary, the next to do things differently and create Recent achievement: Instituting a her first move was to conduct biggest line item is on outside an effective program that reaches regional legal strategy for the North and reactive, an internal assessment of the counsel, and we have tremendously employees in all levels of the Central American operations of Yazaki, company’s legal assets and redefine which reduced that,” Bingham said. “My organization,” Bingham said. “We including creating a legal department in the scope of the department. team knows the company and the wanted to make sure everyone was Mexico and reducing the use of outside produces a much At the time, Bingham’s business. They are able to be accountable because this is counsel. The moves resulted in a 19 department contained one other better result.” proactive instead of reactive, which important — not just because the percent decline in overall legal spending attorney and a paralegal, along with produces a much better result.” law says it is, but it’s important to and a 58 percent reduction in spending mounting legal work from take on more of a regional Bingham’s team also created a our company values.” on outside counsel. increasing operations in Mexico operation, and while we could have legal defense for more than 60 civil Bingham is an active member on and Central America. limped along just handling the U.S. class-action lawsuits — many nonprofit boards, including fter the Great Recession “I really needed to figure out if matters, we couldn’t handle the stemming from the massive Chicago-based legal diversity Aleveled the region’s my new department was structured overall regional structure.” antitrust investigation of the organization Just the Beginning and automotive industry, automakers to meet our needs, which it was Bingham opened a legal office in industry led by U.S. regulators. In the Legal Aid and Defender and suppliers were seeking not,” Bingham said. “The Mexico, which accounts for most of 2012, Yazaki North America’s Association, among many others. efficiencies — mostly for cost organization was restructuring to Yazaki’s manufacturing operations parent, Japan-based Yazaki Corp., — Dustin Walsh

FINALIST: Private company, procedures and an “This “Our attorneys are true business information management, security revenue over $1 billion arbitration/grievance process. partnership has partners who sit at the table and and privacy. Likewise, a patent hen Janet Kelley points to the essentially add value to the decision-making committee was created to help with Janet Kelley Wsuccess of the legal team at eliminated the process.” intellectual property issues. Age: 61 Meijer, the answer starts with age-old issue Kelley, who has held her post Meijer also has been able to keep business, not law. that legal since 2009, points to a number of its legal costs low. Kelley attributes Title: Senior vice president, general Each of the business groups in departments other programs as having a positive that to managing work internally, counsel, Meijer Inc., Grand Rapids the company has an assigned face of not being impact on the company under her working efficiently with fewer Recent accomplishment: attorney who is responsible for informed about leadership. attorneys and being vigilant in Avoiding much of the litigation that keeping a relationship with the business changes at all or maybe at She led the creation of an pursuing recoveries from third plagues most retailers through a business, attending meetings and the last minute,” she wrote in a information management parties. combination of training, policies, calls and offering advice. nomination letter for Crain’s. governance committee to work on — Daniel Duggan 20150427-NEWS--0014-NAT-CCI-CD_-- 4/24/2015 11:35 AM Page 1

14 CRAIN’S DETROIT BUSINESS // April 27, 2015 SPECIAL REPORT: LAW – GENERAL AND IN-HOUSE COUNSEL AWARDS

WINNER: Pro bono attention. corporate attorney. But, it is for handle sexual assault evidence kits. support necessary to process the Wayne Michelle Busuito. The other event was to raise kits and investigate and prosecute Michelle Busuito County “I live in this city,” she said, “and awareness in the business offenders on behalf of the victims, Age: 32 Prosecutor Kym you can’t have economic potential if community. The success of the event she said. Worthy and you don’t feel safe. This is something led to a more formal campaign: Busuito also helped organize the Title: Assistant general counsel, others, horrified that presented itself to me, and I Enough Sexual Assault in Detroit. sexual assault “Take Back the Suburban Mobility Authority for by the discovery, saw a way to help give it a voice.” The Enough SAID campaign is Night” event, scheduled to take Regional Transportation made analysis of Busuito got involved with the an independent collaboration of place April 26 at her alma mater, Recent achievement: Organized the backlog a cause through some friends in 2013 the Michigan Women’s Foundation, Kalamazoo College. fundraisers and awareness for untested priority. The work reportedly has and helped raise money for and the Wayne County Prosecutor’s “Rape doesn’t know socio- rape kits in Wayne County that led to a resulted in 15 convictions so far, but awareness about the untested rape Office and the Detroit Crime economics or any kind of formalized initiative. the processing isn’t over. kits. She remains with the program Commission. boundaries,” Busuito said. “And Each kit costs $49 to test, and the as part of an advisory committee. Busuito, whose day job is assistant when it’s something that will n 2009, more than 11,000 cash-strapped government Part of her role was fundraising general counsel for the local impact one in five women, I think Iuntested DNA rape kits were agencies need money to test 2,300 — in particular in March 2014, suburban bus system, was part of the about all the women in my life, like discovered in an abandoned kits. There are similar collections of when actress Mariska Hargitay, who public launch of the campaign in my younger sisters, and that makes Detroit police storage unit — untested kits in cities nationwide. plays a sex crimes investigator on January. She continues to act as an this such a personal fight.” drawing shocked international That’s not the typical work for a TV’s “Law & Order: Special Victims adviser and leader for the effort. Her work on this project has had Unit,” visited Detroit as part of her Before her position at SMART, an impact, said Wendy Richards, a activism for victims of sexual she worked as a clerk for the judge of this year’s awards and assault and abuse. Michigan Supreme Court, where she director of legal and policy programs One fundraiser was to educate saw a lot of criminal cases. The for Michigan Community Resources. state elected officials about the experience underscores, in her “What made Michelle’s project untested rape kits — and Gov. Rick mind, the importance of giving a stand out is that it did provide ¢¤§¤£ Snyder has since signed legislation voice to crime victims. access to justice to those who that puts timelines on how health The campaign is the mechanism appear to have been denied.” ¦£¦¤ agencies and police departments to raise funds to provide the — Bill Shea FINALIST: Pro bono Somewhere between working on resources to patents for students, helping run an protect them,” ၺၸၹၽ ¡¦£ William Coughlin auto-oriented nonprofit and he said. “This is Age: 61 offering intellectual property advice kind of like a ¡ª¡¡ to nonprofits, William Coughlin has chance to set Title: President and CEO, Ford a day job. them on a path Global Technologies, and assistant A big day job. As president and to change the Thank you for your hard work and dedication general counsel, Ford Motor Co. CEO of Ford Global Technologies world.” and an assistant general counsel In addition, to SMART and the community! Recent accomplishments: Helped launch a pro bono project with the with Ford Motor Co., he oversees Coughlin has helped launch U.S. Patent & Trademark Office intellectual property for the Autoharvest, a nonprofit that serves to help entrepreneurs and students, Dearborn-based automaker. as a neutral and global online out of a desire to see more patents “It’s ideal when you can find a meeting place for innovators with an from idealistic people make it to the project that is important for the interest in advanced manufacturing marketplace. company — and that’s really intellectual property. important — but also means He also has worked worked with something for the community,” Michigan Community Resources on Coughlin said. “That’s a real joy a list of questions that nonprofits when you can find that.” should be asking themselves about Coughlin helped launch a pro intellectual property. bono program through the U.S. “You don’t always think about Patent & Trademark Office in nonprofits as having IP problems, Detroit to help low-income but there are a lot of questions they inventors get the experienced need to be asking themselves,” Meet patent lawyer help they need to Coughlin said. “The donor lists they Detroit Managing Member protect their inventions. use, the materials they create, “Students and young people, as licensing issues, there are a lot of history has shown us, have some of questions that need to be asked.” James J. the brightest ideas but lack the — Daniel Duggan

Boutrous II !30!24.%23 9/5'%44/&/#53/. Attorney. Advisor. Advocate. "5),$).'9/52"53).%33 t$P$IBJS 5SBEF4FDSFU 7(),%7%&/#53/.&).!.#).')4 /PO$PNQFUFBOE6OGBJS $PNQFUJUJPO1SBDUJDF t.FNCFS -BCPSBOE &NQMPZNFOU1SBDUJDF

McDonald Hopkins PLC 8PPEXBSE"WFOVF 4VJUF #MPPNöFME)JMMT .*t Increase your cash flow and pursue bigger opportunities with our customized, flexible lending solutions. $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUSPJUt.JBNJt8FTU1BMN#FBDI s!2&INANCING (248) 658-1100 mcdonaldhopkins.com Carl J. Grassi, President s,INESOF#REDIT www.hitachibusinessfinance.com 20150427-NEWS--0015-NAT-CCI-CD_-- 4/24/2015 11:34 AM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 15 SPECIAL REPORT: LAW – GENERAL AND IN-HOUSE COUNSEL AWARDS

WINNER: Private company,$100 Corp., which it had spun out in an million to $1 billion in revenue initial public offering in 2013. And in December, Compuware Trust is not a natural instinct. Daniel Follis Jr. shareholders approved the sale to Thoma Bravo. Age: 49 On top of that, there was a real estate deal — first reported by Title: Former senior vice president, Crain’s in November — to sell general counsel and secretary, Compuware’s headquarters in Compuware Corp. Campus Martius to Dan Gilbert’s Recent accomplishment: In 2014, Bedrock Real Estate Services and he worked on the divestiture of three Meridian Health for $142 million. business units and the sale of an iconic “Compuware didn’t need to be in Detroit office building, then helped take the real estate business,” Follis said. Compuware private in a $2.4 billion “It was more expensive to be M&A deal. landlord with the space we needed than it was to be a tenant.” t was a career year in 2014 for Others in the business world IDaniel Follis Jr. — one that seemed took notice of the breakneck pace more like a career than a year. at Compuware in 2014. It began in January with the “It was staggering how much hyper-aggressive New York City Compuware accomplished in a hedge fund, Elliott Management year,” said Jesse Cohn, the Elliott Corp., agreeing to hold off on any Management portfolio manager further efforts to who had led negotiations with T rust is the currency of a law firm. We know expertise in every area we practice and advance a Compuware. that trust must be earned; and, once earned, every industry we represent. In short, takeover bid it “I worked a lot with outside it goes up for review on a regular basis. The by never standing pat. had announced counsel, Skadden, Arps, and they success and longevity of our firm rests soundly in December were blown away by what we went upon the cornerstone of trust. After more than 160 years, we know 2012. through in a year,” said Follis, trust is earned — and re-earned — A few days referring to the New York law firm of Butzel Long was founded more than 160 every single day. later, Skadden, Arps, Slate, Meagher & years ago in Detroit. Since that time, clients Compuware Flom LLP. in a variety of industries have entrusted us to Trust. Always. sold three “Every day was an adventure. It faithfully represent their needs every day. We honor that trust by deepening our underperforming units to a Los was the opportunity of a lifetime Angeles-based private equity firm and fun to be part of,” said Follis, Ann Arbor • Bloomfield Hills • Detroit • Lansing • New York • Washington, D.C. • Alliance Offices Worldwide • 313-225-7000 butzel.com for $160 million. who joined Compuware in 1998 In August came secret and was promoted to general negotiations with Thoma Bravo LLC, counsel in 2008. a Chicago-based private equity He resigned earlier this year. firm, with a deal announced Sept. 2 “With the company going that the Detroit-based information private and the change in executive technology company was being leadership, I decided it was the sold for $2.5 billion. right time to pursue new Later in September, the company opportunities,” he said. announced it was splitting into two He looks back on all the deals as units, with the mainframe business having a positive impact on the continuing to operate under that company and the city. name and the business that helps “It was great working with Bob Nonprofi ts: companies monitor the Paul, Joe Angileri and the team,” performance of their software he said. Paul was chairman and Tell your story to the applications in real time operating CEO and Angileri president. “It business community! as Dynatrace. worked out well. We executed on In October, Compuware’s board the plan. We kept the company in approved a plan to distribute to its Detroit. People still have their shareholders the 82 percent of stock jobs.” the company owned in Covisint — Tom Henderson LQWKHGiving 2015 Guide BLOOMFIELD HILLS PARKWAY ■ Published and distributed in the Oct. 26 issue of Crain’s, positioning the nonprofit profiles in front of business owners, CEOs, presidents and top-level executives. ■ The digital edition will be available for an entire year fi rst 52 on CrainsDetroit.com The You’veYo u v e pputut in the hours and risen to nonprofi ts to the challenges.challeng Reap the rewards with BONUS DISTRIBUTION: sign up will be featured ■ 2,500 distribution to wealth a lease at 10010 Bloomfield Hills Parkway. managers and estate/trust as a“Nonprofi t of Note” in an attorneys in Southeast Michigan issue of our Nonprofi t Report UPUP TOTO 161165,700165,66555, RSF NOW AVAILABLE ■ 900 additional copies will be e-newsletter. distributed at the AFP annual THE DETAILS MAKE ALL THE DIFFERENCE. Philanthropy Day Dinner

BRENDAN GEORGE JAMIE DINGEMAN +1 248 351 2039 +1 248 351 2003 Publication Date: Oct. 26 | Profile Reservation Deadline: Aug. 14 [email protected] [email protected] Contact Marla Wise at [email protected] or (313) 446-6032. 20150427-NEWS--0016-NAT-CCI-CD_-- 4/24/2015 11:33 AM Page 1

16 CRAIN’S DETROIT BUSINESS // April 27, 2015 SPECIAL REPORT: LAW – GENERAL AND IN-HOUSE COUNSEL AWARDS

WINNER: Rising star complex citizen seeking political asylum in venture capital deals. The all-cash transaction, terms corporate the United States. Etheridge was Working at Honigman with a of which were not disclosed, Sean Etheridge transactions, lead counsel in the case and argued variety of industries, Etheridge said, brought into Stryker CHG’s U.S. Department of Age: 36 lighter against the he got “a great experience being on manufacture and sales of products, entertainment Homeland Security, winning his the front line of deals, learning to including low-height hospital beds Title: Legal counsel, Stryker Corp., law work and, client asylum. manage teams, learning to that reduce the risk of patient falls. Kalamazoo most recently, The case was many things — interface with clients. As part of a three-person group Recent achievement: Led Stryker’s mergers and intense, fulfilling, stressful and “It was really a great place to housed in Stryker’s approximately legal team in the asset acquisition of acquisitions for a time-consuming — and it also establish a solid foundation for me 50-person legal department, privately held CHG Hospital Beds global medical technology showed Etheridge the “blood, sweat to be able to act as a subject matter Etheridge also assists Stryker Inc., bolstering Stryker’s hospital bed company with nearly $9.7 billion in and tears” that can go into such expert … for mergers and business units with matters such as offerings. annual revenue. personal work, every day. acquisitions,” he said. corporate ethics and governance, Building a track record of “It was very eye-opening, at the And acquisitions are a focus at regulatory filings, bond offerings mentor once told Sean corporate deals, however, hasn’t beginning of my career,” he said. Stryker Corp., where Etheridge and commercial contracts. Etheridge: Always find ways to A pulled him away from giving back He moved on to a firm in joined the company’s corporate law Etheridge said working at one increase expertise. through pro bono work. Chicago and then to Honigman and securities group and in less company with 18 divisions — And he’s had a long list of That has included, at the law Miller Schwartz and Cohn LLP’s Ann than a year led the legal team in customers, for him — presents an experiences early in his career. firm Morrison & Foerster LLP in San Arbor office as a partner focused acquiring London, Ontario-based opportunity to learn. Etheridge has worked through Diego, representing an Iranian primarily on private equity and CHG Hospital Beds Inc. “I think I’m really excited to dive more deeply into Stryker at this point,” he said. “It’s really a know- your-customer approach that I’m hoping to take over the next few years.” — Amy Lane

FINALIST: Rising star Employers and Lawyers, Christina Flint Working Together Age: 31 Title: Assistant general counsel, Diplomat Pharmacy Inc. Recent accomplishment: Working with a legal and financial team that acquired three companies and executed an initial public offering. or Christina Flint, her career Fstory originated in being at the right place at the right time. What started with an idea of looking for a job closer to her home We are proud to serve as the title sponsor of ended with her in the position to work on an initial public offering, Crain’s General & In-House Counsel Summit three acquisitions and rapidly climb the organizational and honored to celebrate the achievements and strategic chart at a major company. acumen of the winners, finalists, and nominees. After working at two metro Detroit law firms — Dickinson Wright PLLC and Ogletree Deakins is one of the largest labor and employment law firms Hall, Render, representing management in all types of employment-related legal Killian, Heath & Lyman PLLC — she matters. The firm has more than 700 lawyers located in 47 offices started thinking about an in-house legal position. across the United States, in Europe, and in Mexico. We are here to help Also on the list was something you resolve all of your Labor & Employment issues. closer to her Grand Blanc home. It turned out the fast-growing, Flint-based Diplomat Pharmacy was looking for an in-house attorney. “It was a perfect fit,” she said. From there, Flint was off and running. Diplomat has been in growth mode; acquiring companies and preparing for its October IPO. As a young attorney, it was a chance for Flint to play a role in that complicated transaction, as well as three M&A deals. It’s led to greater responsibilities as she’s been promoted three times since joining the company in 2012. “It’s been a chance to be exposed to new areas that I’d never be exposed to otherwise,” she said. “Part of it is the right place at the right time, and part of it is that my boss let me take the reins on some significant contracts.” — Daniel Duggan 20150427-NEWS--0017-NAT-CCI-CD_-- 4/24/2015 11:07 AM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 17 SPECIAL REPORT: LAW – GENERAL AND IN-HOUSE COUNSEL AWARDS John Dean set to keynote Crain’scounsel awards

By Daniel Duggan Winners of the General Counsel of [email protected] the Year awards, profiled on pages 11- When it comes to fascinating 16, will be recognized at the event. tales of abuses of power and cover- There will be a portion of the ups, nothing tops Watergate. event open only to in-house attor- Detroit’s legal community will neys so they can share best practices have a chance to hear those stories privately. Later in the day, panel dis- from the trenches — direct from the cussions will dive into practical in- attorney who had a front-row seat: formation for in-house attorneys. John Dean. Hot topics to be addressed: Dean, who was counsel to Presi- Ⅲ Managing the ups and downs dent Richard Nixon from July 1970 to of the business cycle. Engineering/ April 1973, will be the keynote speak- Ⅲ What your CFO wants you to Business Computers Education Health Human er for the fifth annual Crain’s General know: Practical financial advice for Technology Services & In-house Counsel Awards on June attorneys. 10 at the Westin Book Cadillac Detroit. Ⅲ E-discovery: The bigger picture In recent years, Dean has become on strategies for discovery as case “TO FIND QUALIFIED EMPLOYEES, I RELY ON a national speaker on ethics and poli- research becomes more immersed cy. His speeches for attorneys include in technology. BAKER COLLEGE.” tapes from the Library of Congress Ⅲ Cybersecurity: Proactive ap- archives and his own take on an at- proaches for legal teams to take. torney’s role in advising the president The title sponsor of the event is of a potential wrong-doing. Ogletree, Deakins, Nash, Smoak & .com He’s written numerous books on Stewart PC. The event is hosted in Ready. Trained. Hire. his time in the White House, includ- partnership with the Michigan ing the most recent: The Nixon De- chapter of the Association of Corpo- fense: What He Knew and When He rate Counsel and the State Bar of Knew It. Michigan-Business Law Section In- The service is free—the result is just the person you’re looking for. The keynote presentation will House Counsel. FIND THE RIGHT CANDIDATE FOR THE JOB AT HIREQUALIFIED.COM 6485HQ cap an event focused on in-house Individual tickets are $150. To regis- attorneys. ter, go to crainsdetroit.com/events. Ⅲ

OF LITIGATOR THE YEAR 2015

Frank A. Angileri Congratulations to Frank Angileri for being named Michigan’s Litigator of the Year by Managing Intellectual Property magazine.

Brooks Kushman is a leading intellectual property and technology law ﬁrm, serving clients nationally and internationally from our ofﬁces located in Michigan and California. With more than 90 intellectual property professionals, specialized in various disciplines, Brooks Kushman has earned You create. You innovate. We protect. a national reputation for protecting our clients’ IP rights. 20150427-NEWS--0018-NAT-CCI-CD_-- 4/24/2015 11:20 AM Page 1

18 CRAIN’S DETROIT BUSINESS // April 27, 2015 Ruling: Work-from-home request not reasonable

By Judy Greenwald Jackson Lewis PC in Stamford, Conn., nation charge with the EEOC. “Had it gone the The earlier appeals court panel Crain News Service of this month’s 8-5 ruling by the Sixth Last week’s en banc ruling re- ruling “was a step away from how A federal appeals court ruling that U.S. Circuit Court of Appeals in Cincin- versed an April 2014 ruling by a other way, the courts had ruled” on this issue, and telecommuting was not a reason- nati in Equal Employment Opportu- three-judge appeals court panel that floodgates would created employer uncertainty that able accommodation for a disabled nity Commission v. Ford Motor. ruled in the EEOC’s and Harris’ has now been resolved, said Mark Ford Motor Co. worker under the fed- Jane Harris worked as a resale favor. The most recent ruling, which have opened.” Girouard, a shareholder with law eral Americans with Disabilities Act buyer for Ford Motor Co. and suf- granted Ford summary judgment Michael Soltis,Jackson Lewis PC firm Nilan, Johnson, Lewis P.A. in Min- is a significant victory for employers fered from irritable bowel syn- dismissing the case, said the ADA neapolis. that could have created problems drome, according to court records in “does not endow all disabled per- sidering our options.” Despite the ruling, however, em- for businesses had the court ruled the case. In 2009, Harris’ supervisors sons with a job — or job schedule — “It’s a big win for employers and is ployers should still look at each otherwise. denied her request to telecommute of their choosing” and that “regular pretty much of a bench slap to the telecommuting request “on its own “Had it gone the other way, the up to four days a week as an accom- and predictable attendance” was a EEOC in terms of it not even being a merits,” advised Jonathan floodgates would have opened” for modation for her disability, con- requirement of Harris’ job with close case, according to the en banc Yarbrough, a partner with law firm employees to seek telecommuting cluding her position was not suit- Ford. majority,” said Gerald Maatman, a Constangy, Brooks, Smith & Prophete LLP accommodations, said Michael able for it. She was terminated in An EEOC spokeswoman said, “We partner at law firm Seyfarth Shaw LLP in Asheville, N.C. Soltis, a shareholder with law firm 2009, after she had filed a discrimi- are reviewing the decision and con- in Chicago. From Business Insurance BANKRUPTCIES

The following businesses filed for protection in U.S. Bankruptcy Court in Detroit April 17-23. Under Chap- ter 11, a company files for reorgani- zation. Chapter 7 involves total liq- Properly administered, a Family Trust uidation. Property Solutions of Michigan, 8155 Annsbury Drive, Shelby Town- safeguards your most valuable asset: ship, voluntary Chapter 7. Assets: $2,200; liabilities: $327,000. FAMILY TRUST. M. Mullins Inc., 7505 Canton Cen- ter Road, Canton Township, volun- It’s understandable why tightly knit families rely on Greenleaf Trust to tary Chapter 11. Assets and liabilities not available. keep things in good order from one generation to the next. With family oﬃ ce William and Michelle Mullins LLC, 7505 Canton Center Road, Canton and personal trust divisions, a legal charter that ensures our independence in Township, voluntary Chapter 11. perpetuity, and the stability enabled by nearly $8B in assets, we capably Assets and liabilities not available. — Natalie Broda accommodate all sides without taking them. Trust is in our name for a reason; for the good of your family, please allow us to earn yours. Nominations sought for 40 under 40 awards Since 1991, Crain’s Detroit Business has gathered 40 of the community’s high achievers for a special salute. Past winners have started companies, found success at a young age at established businesses and made nonprofits stronger. Crain’s is seeking nominations for the 2015 class of 40 under 40, which recognizes achievers across metro Detroit under age 40 based on factors such as financial impact and community leadership. Winners will be profiled in the Oct. 5 issue and honored at an awards event in November. With more than 680 alumni invited, the event brings together the current class with colleagues, clients, family and friends to celebrate. To be eligible, nominees must be age 39 or younger as of Oct. 5, 2015. Nominations must be received by May 11. Winners will be notified this summer. Nominations are submitted online and can be found at crainsdetroit.com/section/no minate. For questions regarding the nominations: Contact Bill Shea at [email protected] or (313) 446-1626. For technical questions 34977 woodward avenue birmingham, mi 48009 greenleaftrust.com 248.530.6200 regarding the nomination form: Contact YahNica Crawford at [email protected] or (313) 446- 1641. DBpageAD_DBpageAD.qxd 4/24/2015 10:37 AM Page 1

GC JOIN CRAIN’S AS WE Rewind The Tape IN AMERICAN HISTORY

with keynote speaker JOHN DEAN, former White House Counsel to President Richard Nixon

Ŷ EDUCATIONAL SESSIONS — 2:30 P.M. • Automotive • E-discovery • What your CFO wants you to know • Cybersecurity Wednesday, June 10 Ŷ AWARDS PROGRAM AND DINNER — 5:30 P.M. Network with our Class of 2015 GC winners Westin Book Cadillac, Detroit and ﬁ nalists as well as past honorees 2 p.m.-7:30 p.m. Ŷ KEYNOTE SPEAKER — 6 P.M. Seating is limited. Register today: crainsdetroit.com/events, or call (313) 446-0300

IN PARTNERSHIP WITH SESSION SPONSORS TITLE SPONSOR NOTEBOOK SPONSOR MAJOR SPONSOR LOCATION SPONSOR

IN COOPERATION WITH

ONE NIGHT ONLY — Mingle with the top M&A minds of 2014

2014 HONOREES Deal over $100 million Winner: Beaumont Health System/ Oakwood Healthcare/Botsford Hospital Finalist: Sun Communities Inc./Green Courte Partners LLC Deal under $100 million May 12 | 5-9 p.m. Winner: FEATURED SPEAKER O2 Investment Partners LLC/PC Treasures Troy Marriott Bob Paul to Finalist: Prime Healthcare Services/Garden City Hospital ACQUIRE TICKETS AT: speak about Dealmaker adviser crainsdetroit.com/events Compuware’s Winner: Plante Moran PLLC, Dennis Graham or call (313) 446-0300 winding path Dealmaker buyer/seller PRICE: to sale Winner: BlackEagle Partners LLC ACG members and Bryan Tolles and Jason Runco groups of 10 or more: $95 ea. Individual tickets: $100 Preregistration closes at 9 a.m. May 8. Walk-in registration: $120 a person

TITLE SPONSOR PREMIER SPONSOR MAJOR SPONSORS IN COOPERATION WITH DBpageAD_DBpageAD.qxd 4/16/2015 10:27 AM Page 1 20150427-NEWS--0021-NAT-CCI-CD_-- 4/24/2015 11:21 AM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 21

CRAIN'S LIST: LARGEST LAW FIRMS Ranked by number of attorneys in Southeast Michigan To t a l local attorneys Company Jan. Of Rank Address Top local 2015/ Partners Associates Counsel Paralegal Michigan Worldwide Phone; website executive 2014 2015 2015 Other 2015 2015 Jan. 2015 Jan. 2015 Representative clients Honigman Miller Schwartz and Cohn LLP David Foltyn 208 162 37 9 12 26 248 248 BlackEagle Partners; DIA; GM; Huron Capital Partners; Kellogg; 2290 First National Building, chairman and 205 Ramco-Gershenson; Rock Financial/Quicken/Rockbridge; 1 660 Woodward Ave., Detroit 48226-3506 CEO Taubman; Trinity Health; and Village Green (313) 465-7000; www.honigman.com Dickinson Wright PLLC William Burgess 168 130 38 0 NA NA 209 388 Aetna, AT&T, Beaumont Health' Carhartt, FCA US LLC, Ford, 2 500 Woodward Ave., Suite 4000, Detroit 48226 CEO 165 Johnson Controls, J.P. Morgan Chase Bank N.A., Kettering (313) 223-3500; www.dickinsonwright.com University, Quantum Health, Wal-Mart Dykema Gossett PLLC Peter Kellett 152 91 32 29 0 15 180 346 Ford, International Transmission Co., Onewest Bank FSB, 3 400 Renaissance Center, Detroit 48243 chairman and 159 Ocwen Financial Corp, JP Morgan, GM, Cedarcrestone, Bank of (313) 568-6800; www.dykema.com CEO America, Ismie Mutual Insurance, Nationstar Mortgage Miller, Canfield, Paddock and Stone PLC Michael McGee 139 89 23 27 12 33 182 253 Chrysler, Comerica, Ford, Detroit Edison, Meritor, Siemens, 150 W. Jefferson Ave., Suite 2500, Detroit CEO 141 BorgWarner, City of Detroit, Michigan Finance Authority 4 48226-4415 (313) 963-6420; www.millercanfield.com Bodman PLC Ralph McDowell 137 100 37 0 21 19 141 141 Comerica Bank; Bank of America; Archdiocese of Detroit; Blue Sixth Floor at Ford Field, 1901 St. Antoine St., chairman 132 Cross Blue Shield of Michigan; Lear Corp.; Ford family; Grede 5 Detroit 48226 Holdings; Key Plastics; Meridian Health Plan; Sparton Corp. (313) 259-7777; www.bodmanlaw.com Clark Hill PLC John Hern 124 67 28 29 19 NA 148 298 NA 6 500 Woodward Ave., Suite 3500, Detroit 48226 CEO 126 (313) 965-8300; www.clarkhill.com Butzel Long PC Justin Klimko 114 76 11 27 4 NA 118 132 Beaumont Health, MGM Grand, Dura Automotive, KSPG 7 150 W. Jefferson Ave., Suite 100, Detroit 48226 president and 109 Automotive, Indian Head, UM, Oakland Community College, (313) 225-7000; www.butzel.com managing Exxon Mobil shareholder Jaffe Raitt Heuer & Weiss PC Bill Sider 104 86 18 0 NA 19 104 104 Sun Communities, Strength Capital Partners, Redico 27777 Franklin Road, Suite 2500, Southfield CEO and 100 8 48034-8214 managing partner (248) 351-3000; www.jaffelaw.com Plunkett Cooney PC Henry Cooney 98 47 39 12 12 12 131 142 Bank of America, Huntington National Bank, First American 38505 Woodward Ave., Suite 2000, Bloomfield president and 108 Title Insurance, Beaumont Health, Liberty Mutual Insurance 9 Hills 48304 CEO Co., Michigan Municipal League, PNC Financial Services (248) 901-4000; www.plunkettcooney.com Group, The Travelers Cos., Frankenmuth Mutual Insurance Co., The Doctors Co. Kitch Drutchas Wagner Valitutti & Sherbrook Mark Wisniewski 92 NA NA 0 NA NA 88 100 State Farm Mutual Insurance, Henry Ford Health, AIG Property PC chairman/CEO 84 Casualty, MHA Insurance Co., Tenet Health, Ascension Health, 10 1 Woodward Ave., Suite 2400, Ciena Healthcare, HCR Manorcare, Allegiance Health, Utica Detroit 48226-5485 Mutual Insurance (313) 965-7900; www.kitch.com Brooks Kushman PC Mark Cantor 76 39 25 12 1 NA 76 79 NA 11 1000 Town Center, 22nd Floor, Southfield 48075 president 72 (248) 358-4400; www.BrooksKushman.com Giarmarco, Mullins & Horton PC Executive 70 31 39 0 NA NA 70 70 NA 101 W. Big Beaver Road, 10th Floor Columbia committee 70 12 Center, Troy 48084-5280 (248) 457-7000; www.gmhlaw.com Garan Lucow Miller PC John Gillooly 70 43 27 0 2 12 82 82 NA 12 1000 Woodbridge Place, Detroit 48207 chairman of 59 (313) 446-1530; www.garanlucow.com executive committee Howard & Howard Attorneys PLLC Mark Davis 66 48 15 3 7 6 66 125 BASF; BMO Harris Bank N.A.; Chrysler Group; Dow Corning; 14 450 W. Fourth St., Royal Oak 48067 president and 67 Konami Gaming; Magna Mirrors of America; Sears Holdings; (248) 645-1483; www.howardandhoward.com CEO ThyssenKrupp B Trott Law PC Jeff Raff, Macy 63 NA NA 0 NA NA 63 63 Bank of America, J.P. Morgan, Wells Fargo, Comerica 31440 Northwestern Hwy., Suite 200, Ford and Jeff 73 15 Farmington Hills 48334 Weisserman (248) 642-2515; www.trottlaw.com managing partners

This list is an approximate compilation of the largest law firms in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Total number of attorneys does not include of counsel. It is not a complete listing but the most comprehensive available. Unless otherwise noted, information was provided by the law firms. Firms with headquarters elsewhere are listed with the address and top executive of their main Detroit-area office. NA = not available.

B Formerly Trott & Trott PC

LIST RESEARCHED BY SONYA D. HILL Continued on Page 23 DBpageAD_DBpageAD.qxd 4/23/2015 9:08 AM Page 1

Merging of Minds

Navigating and completing mergers and acquisitions begins with assembling the right multidisciplinary team. From due diligence to closing documents, Warner Norcross & Judd has the expertise and experience to handle every aspect of your deal. Let Warner’s team work for you. We make M&A manageable.

Learn more about our M&A practice and other representative experience at WNJ.com/M-and-A

A BETTER PARTNERSHIP® By providing discerning and proactive legal counsel, we build a better partnership with clients.

F=9R^\~'%%$""" ' 20150427-NEWS--0023-NAT-CCI-CD_-- 4/24/2015 11:21 AM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 23 CRAIN'S LIST: LARGEST LAW FIRMS Ranked by number of attorneys in Southeast Michigan From Page 21 To t a l local Company attorneys Of Rank Address Top local Jan. 2015/ Partners Associates Counsel Paralegal Michigan Worldwide Phone; website executive 2014 2015 2015 Other 2015 2015 Jan. 2015 Jan. 2015 Representative clients Harness, Dickey & Pierce PLC Executive 59 45 13 1 NA 6 58 105 NA 16 5445 Corporate Drive, Suite 200, Troy 48098 committee 62 (248) 641-1600; www.hdp.com Kerr, Russell and Weber PLC Executive 55 39 16 0 5 3 55 55 AVL Test Systems, Michigan State Medical Society, Quantum 17 500 Woodward Ave., Suite 2500, Detroit 48226 committee 55 Fuel Systems Technologies, Shanghai Zhongli Automobile (313) 961-0200; www.kerr-russell.com Parts, Volkswagen Group, Wade-Trim Associates Secrest, Wardle, Lynch, Hampton, Truex and Mark Morley and 51 NA NA 0 NA NA 63 63 NA Morley PC Bruce Truex 54 18 2600 Troy Center Drive, P.O. Box 5025, Troy co-chairmen, 48007-5025 executive (248) 851-9500; www.secrestwardle.com committees Sullivan, Ward, Asher & Patton PC Anthony Asher 50 29 11 10 NA 2 50 50 NA 25800 Northwestern Hwy., 1000 Maccabees president and 50 19 Center, Southfield 48075-8412 CEO (248) 746-0700; www.swappc.com Collins, Einhorn, Farrell & Ulanoff PC Neil MacCallum 43 12 23 8 1 9 43 43 NA 20 4000 Town Center, Suite 909, Southfield 48075 chairman 41 (248) 355-4141; www.ceflawyers.com Michael Sullivan president Zausmer, August & Caldwell PC Mark Zausmer 41 14 27 0 0 10 41 41 ITC Holdings, Philadelphia Ins, State Farm Mutual Auto, Farm 31700 Middlebelt Road, Suite 150, Farmington managing 37 Bureau Insurance, EMC Insurance, SMART, City of Dearborn, 21 Hills 48334 shareholder Auto Owners Ins, Wal-Mart, Pall Life Sciences (248) 851-4111; www.zkac.com Maddin, Hauser, Roth & Heller, P.C. Mark Hauser 40 34 6 0 1 6 40 0 Fifth Third Bank, TCF National Bank, Shellpoint Mortgage 28400 Northwestern Highway, Southfield CFO 42 Servicing, Kroger Co., Garden Fresh Salsa Co. Inc., CNA 22 48034-1839 Steven Sallen Insurance Co., Zurich North America, The Hartford, AIG, (248) 354-4030; www.maddinhauser.com president Fidelity National Title Group, First Merit Bank, Level One Bank, Nationstar Mortgage, M1 Concourse Warner Norcross & Judd LLP William Jansen 39 23 9 7 2 1 192 192 Amway, Borg Warner' Consumers Energy, Dow Chemical, Fifth 2000 Town Center, Suite 2700, Southfield Executive partner 37 Third Bank, Mahle Industries, Spectrum Health, Stryker, 23 48075-1318 Robert Bosch, Whirlpool (248) 784-5000; www.wnj.com Kemp Klein Law Firm Ralph Castelli Jr. 37 24 13 0 5 10 37 37 NA 201 W. Big Beaver Road, Suite 600, Troy president, CEO 33 24 48084-4161 and managing (248) 528-1111; www.kempklein.com partner Vandeveer Garzia, P.C. William Kiriazis 36 12 24 0 NA 6 36 36 Allstate, Travelers, Coca Cola, CNA, Delta Air Lines, Life Time 25 840 W. Long Lake Road, Suite 600, Troy 48098 president 32 Fitness, Progressive Insurance, Southwest Airlines, Citizens (248) 312-2800; www.vgpclaw.com Insurance Kotz Sangster Wysocki PC Gregory Wysocki 35 4 5 26 0 4 35 35 BMT Aerospace USA; Detroit Economic Growth; Olga's 400 Renaissance Center, Suite 3400, Detroit CEO and 35 Kitchen; Peerless Steel; Skanska USA Building; Salvation Army; 26 48243-1618 managing partner Trico Products; TTi Global; Virginia Tile; ZF North America (313) 259-8300; www.kotzsangster.com Foley & Lardner LLP Daljit Doogal 33 15 14 4 NA NA 33 812 Wynnchurch Capital, Kohler Co., Nexteer Automotive, Amcor One Detroit Center, 500 Woodward Ave., Suite Detroit office 34 Limited, Visteon Corporation, TI Automotive, Steve Madden 27 2700, Detroit 48226-3489 managing partner LTD, Suncoke Energy, Tower Automotive, Pulte Group (313) 234-7100; www.foley.com Dawda, Mann, Mulcahy & Sadler PLC Management 33 27 6 0 3 5 33 33 NA 39533 Woodward Ave., Suite 200, Bloomfield committee 32 27 Hills 48304 (248) 642-3700; www.dawdamann.com Young Basile Hanlon & MacFarlane PC Andrew Basile Jr. 33 14 17 2 3 NA 33 36 NA 27 3001 W. Big Beaver Road, Suite 624, Troy 48084 president 31 (248) 649-3333; www.youngbasile.com Seyburn Kahn PC Bruce Kahn 30 NA NA 0 NA NA 30 30 NA 2000 Town Center, Suite 1500, Southfield 48075 co-managing 30 (248) 353-7620; www.seyburn.com shareholder, executive VP 30 Michael Santeufemia co-managing shareholder Varnum LLP Richard Hooker 30 13 3 14 NA 5 134 134 Borroughs, Bradford White, Kellogg, Flagstar Bank, Georgia- 39500 High Pointe Boulevard, Suite 350, Novi and Scott 28 Pacific, Kawasaki Motors, Metro Health Hospital, Michigan 30 48375 Huizenga Sugar, Sappi/S.D. Warren, Sauder Woodworking (248) 567-7400; www.varnumlaw.com partners Couzens, Lansky, Fealk, Ellis, Roeder & Lazar Jeffrey Levine 29 16 13 0 4 5 29 29 Talmer Bank, Prince Group, Nissan, Police & Fire Retirement/ PC managing partner 32 General Retirement Systems of Detroit, Security Corp., First 32 39395 W. 12 Mile Road, Suite 200, Farmington American Title Insurance, Flagstar Bank, Midway Products Hills 48331 Group, Ashley Capital (248) 489-8600; www.couzens.com Cummings, McClorey, Davis & Acho PLC Christopher 29 15 14 0 NA NA 33 37 Michigan Municipal Risk Management Authority; Detroit 33900 Schoolcraft Road, Livonia 48150 Schultz 28 Edison; Olympia Entertainment; Michigan Community College 32 (734) 261-2400; www.cmda-law.com managing partner Risk Management Authority; Plastipak; Wayne County Airport Authority; Farmer's Insurance Exchange; Consumers Energy; Dean Foods; Morley Candy Makers Hall, Render, Killian, Heath & Lyman PLLC Kimberly 28 13 15 0 0 1 28 175 NA 34 201 W. Big Beaver Road, Suite 1200, Troy 48084 Commins- 41 (248) 740-7505; www.hallrender.com Tzoumakas managing partner

LIST RESEARCHED BY SONYA D. HILL 20150427-NEWS--0024-NAT-CCI-CD_-- 4/24/2015 11:54 AM Page 1

24 CRAIN’S DETROIT BUSINESS // April 27, 2015

Frimo Inc., Wixom, from general planned giving and major gifts, SPOTLIGHT sales manager, Krauss Maffei Corp., United Methodist Retirement Com- PEOPLE Florence, Ky. munities Foundation, Chelsea, from ANDY FORNAROLA: associate director of development, Executive vice president Ed Church to vice president and Michigan Opera Theatre, Detroit. and director of community treasurer, International Automotive banking, Flagstar Bank ON THE MOVE Components Group, Southfield, Diane Banks to Andy Send news items and photos to [email protected] from interim treasurer. project manager, Fornarola has programs, Lead- been named ARCHITECTURE to executive vice president and CFO, Michael Maddelein to vice presi- ership Macomb executive vice Michael Coop- from vice president of finance. dent of engineering, Inteva Prod- Inc., Mount president and er to corporate ucts LLC, Troy, from vice president Clemens, from director of president, Harley LAW of engineering services, Tech environmental- community Ellis Devereaux Steven Kohl to chairman, re- Mahindra Ltd., Southfield. ist III, Macomb banking at Corp., South- sources, energy and environment Banks County Health Fornarola Flagstar Bank in field. He contin- group, Warner Norcross & Judd LLP, MARKETING Department, Troy. He over- ues as managing Southfield, and Kurt Brauer to chair- Jill Lulkin to Mount Clemens. Also, Kristen Di Fe- sees the commercial, retail and principal. Also, man, agribusiness and food industry business devel- lice to project manager, public rela- government banking divisions, Cooper Daniel Lafferty to group. Both are partners at the firm. opment director, tions, social media and events, warehouse lending, consumer fi- corporate opera- pulse220, Fern- from project manager, Constella- nance, community reinvestment, tions leader. He continues as proj- Evan Kaploe to dale, from direction Communication Corp., At- marketing and quality initiative. ect management leader. senior attorney tor of business lanta. Fornarola, 58, was executive and tax manage- development, vice president and head of con- DISTRIBUTORS ment practice Conpoto LLC, SERVICES sumer finance at First Niagara Scott Sellers to group leader, Detroit. Veronica Malia to managing di- Bank, Buffalo, N.Y. He has also executive vice Plunkett Cooney Lulkin rector, domestic outsourcing, Gene- held leadership positions at M&T president, opera- PC, Bloomfield MEDIA sis10, Troy, from senior vice presi- Bank, Chase Manhattan and HSBC. tions, McNaugh- Hills, from Scott Meier to Detroit market dent, portfolio manager, Bank of He has a bachelor’s degree in ton-McKay Electric Kaploe owner/attorney, manager, Spartan Sports Network, America, Troy. economics from the University of Co., Madison Evan H. Kaploe Farmington Hills, from president Rochester (N.Y.) and an MBA Heights, from PLLC, Southfield. and COO, ViewTurn.com, Troy. Nicole Sokloski from the William E. Simon Gradu- vice president of to events man- ate School of Business Administra- operations. Also, MANUFACTURING NONPROFITS ager, Display tion at the University of Rochester. Sellers John Kuczmanski Steve Willis to director of sales, Kim-Lan Trinh to director of Group, Detroit, from sales manager, Emerald City Designs LLC, Farmington Hills. Sokloski Art Eckert to vice president, project and development services, Jones Lang LaSalle Inc., Royal Oak, from vice president, Plante Moran Cresa LLC, Southfield.

Joseph Pongracz to program manager, Ford Motor Co. programs, Process Development Corp., Canton Township, from engineer.

Jud Hudnut to program manager, Residex LLC, Novi, from Mid- 2 , 7 0 0 M I L E S O F west region sales manager, Turf- grass division, Residex LLC, H I G H - S P E E D M I C H I G A N Howell. TECHNOLOGY Trisha Winter to chief marketing officer, Am- plifinity Inc., Ann Arbor, from vice president of brand and communications, Dynatrace LLC, Winter Detroit.

123Net has a high-speed ﬁber optic network stretching 2,700 Scott Jackson to vice president miles across Michigan, and we’re not stopping anytime soon. sales, Gravity Software LLC, South- We’re always ready to go the extra mile, ensuring Michigan field, from senior vice president of businesses have access to reliable, high-capacity connectivity. business development, Columbus, Royal Oak.

People on the Move announcements are limited to management positions. Email [email protected]. Include person’s name, new title, company, city in which the person YOUR BACKBONE FOR BUSINESS will work, former title, former FIBER • COLOCATION • VOICE • WIRELESS 866.460.3503 123.NET company (if not promoted from within) and former city in which the person worked. Photos are welcome, but we cannot guarantee they will be used. 20150427-NEWS--0025-NAT-CCI-CD_-- 4/24/2015 11:05 AM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 25

Website: transitionslegal.com. NEW PRODUCTS DEALS Continental Automotive Systems REAL ESTATE Inc., Auburn Hills, an international automotive supplier, has developed LUXURY PROPERTY Trailer Reverse Assist, a trailer de- tection and control system that uses a rear camera for enhanced & DETAILS viewing and control.The trailer can Submit news to [email protected] be steered with a knob from inside the vehicle or from a wireless CONTRACTS task order with the U.S. Coast Guard tablet/smart device. The technolo- An Educational-Informational Guided Tour of Real Estate Condominium Management Associ- for electronic support services. The gy will be ready for production in Styles and $-Values. Including Highlights of Cultural, ates LLC, Farmington Hills, a prop- award is through the Department of 2018. Website: continental- Recreational, Medical and People Resources. To explore erty management firm, announced Homeland Security and allows automotive.com. Homes and Condos for “Soon to Retire” & Family Vacations it has been retained to provide serv- OpTech to compete on future task Wednesday June 10 - 7 PM Through Saturday June 13 - 1 PM ices to The Fifth Royal Oak Luxury Loft orders. Website: optechus.com. Hallite Seals Americas Inc., Quality Tour includes: Hotel, Petoskey Area Bus, Condominiums, Royal Oak; Hickory Wixom, a global manufacturer of Most Meals, Professional Broker-Guide: $499 per person Ridge of Rochester Hills, Rochester EXPANSIONS hydraulic sealing solutions and a Joe Blachy Hills; West Bloomfield Pond, West Patti Engineering Inc., Auburn member of the Fenner PLC Group of Call Me: 231-409-9119 Bloomfield Township; and Golf Hills, has opened its fourth office, in companies, introduced the com- Ridge Villa Homes, Livonia. Website: Chattanooga, Tenn., to meet manu- pact double acting piston seal, re- FOR ALL FACTS: EMAIL: joeblachy.com [email protected] condomanage.net. facturers’ need for specialized au- placing the company’s legacy 714 Schmidt Realtors tomation integration expertise. series. Website: hallite.com. 420 Howard Petoskey MI MGM Grand Detroit, Detroit, a Website: pattieng.com. casino owned by MGM Resorts In- STARTUPS ternational, announced that Mc- UltraLevel Inc., Southfield, an IT Axion RMS Ltd., an insurance AUCTIONS WATERFRONT PROPERTY Cann Detroit, Birmingham, is now provider, has launched CloudSafe broker and risk management con- SANDUSKY BEACH HOUSE its integrated agency of record. Ltd. a new company designed to sulting firm, has opened at 39111 Vacation Rental. 4 Bdrms/3 Full BA. Private Beach in Front. Sandusky Bay in Back w/private dock. 2.7 Websites: mgmgranddetroit.com, handle private cloud computing. Six Mile Road, Livonia. Telephone: Miles from Cedar Point. Fully Equipped Kitchen. Washer/Dryer. Gas Grill. Wifi. Large House. mccanndetroit.com. The company operates out of (734) 432-3150. Website: [email protected] for flyer. 937-542-1420 SSAE-16 (Statements on Standards www.axionrms.com. Fourmidable Group Inc., Bingham for Attestation Engagements) audit- APARTMENT BUILDINGS Farms, a property management ed data centers in Southfield and firm, has been named the manage- Grand Rapids. Websites: Deals & Details guidelines. HAZEL PARK ment company for four new resi- cloudsafe.com, ultralevel.com. Email [email protected]. 24 Unit Apartment Building dential communities to be con- Use any Deals & Details item as a 100% Occupied, Onsite Manager structed in Tennessee. Website: MOVES model for your release, and look for $639,000 Cash Out. fourmidable.com. Transitions Legal PLLC has the appropriate category. Without 586-786-6118 moved from 40900 Woodward Ave., complete information, your item will OpTech LLC, Troy, an IT, engi- Bloomfield Hills, to 280 N. Old not run. Photos are welcome, but we AUCTIONS neering and health care talent Woodward Ave., Suite LL20, Birm- cannot guarantee they will be used.

management firm, was awarded a ingham. Telephone: (248) 290-0560. Re nd na MARKET a i el ss g an d c i e R 05 30 ABSOLUTE AUCTION PLACE GROSSE POINTE FARMS CALENDAR WEDDING SERVICES

E S T Waterfront Weddings Ameri- L A WEDNESDAY president of policy analysis, A T E Crain’s2015 M&A Awards R 10th Annual Nonprofit Manage- can Gas Association E Northern Michigan

, is the keynote S

O R

ment Conference. 8 a.m.-3 p.m. Troy Join Crain’s Detroit Business, in speaker. Suburban Collection H

N DestinationWeddingsUpNorth.com E

S B B Chamber of Commerce. Confer- partnership with the Association Showplace, Novi. $85 ESD mem- Y Experience The Ridgeland Estate 906-643-8621 ence includes continental breakfast for Corporate Growth - Detroit bers, $100 nonmembers, or $154 221 Lewiston | Grosse Pointe Farms | MI and lunch, networking and morn- Chapter, to meet the M&A Awards for nonmembers who attend and GP Historical Society’s 2013 Show ing and afternoon breakout ses- winners and finalists and hear join ESD. Contact: Leslie Smith, House! Built in 1924, this 8,800+/- SF, sions. Speakers include Jimi Plouffe, the stories behind the top trans- (248) 353-0735, ext. 152; email: 8 bedrm, Italian Renaissance Villa JOB home sits on a sloping ridge of 1.3 founder and CEO, Momentum; actions of 2014 from the deal- [email protected] ; website: esd.org. acres. Enchanting gardens, timeless David Zuza, fund development di- makers themselves. architecture, and exquisite wall paintings make this home a Grosse FRONT rector, Troy Historic Village; Michelle The event takes place 5-9 p.m. Vets Business Boost. 1:30-5 p.m. Pointe masterpiece worth experiencing. Wooddell, president and CEO, Cob- May 12 at the Troy Marriott. Tick- (Check in starts at 1 p.m.) May 5. blestone Solutions LLC Mark Open Houses POSITIONS AVAILABLE ; and ets are $100 in advance, or $95 for Michigan Department of Technolo- Sun., May 3rd & Sat., May 9th Noon – 3PM Geary , corporate communications, current ACG members. Groups of gy, Management and Budget Pro- Auction Date Beaumont Health System; others. 10 or more are $95 each. curement’s Contract Connect. Vet- Saturday, May 30th at Noon SMACNA Woodside Bible Church, Troy. $50, Preregistration closes May 11 at eran-owned businesses looking for (Sheet Metal and Air Conditioning Troy chamber members, $100 non- 9 a.m. If available, walk-in regis- contracting opportunities will learn Contractors members. Contact: (248) 641-3694; tration will be $120 per person. the ropes. Presentations from the National 877.696.7653 | MichiganAuctioneer.com Association) email: [email protected]; For information, contact Kacey Procurement Technical Assistance OHIO | MICHIGAN | FLORIDA Metropolitan website: troychamber.com. Anderson, (313) 446-0300, Center, Pure Michigan Business Con- Detroit Chapter actively seeking [email protected]. nect, Vet Biz Central and the Nation- candidate to fulfill Networking Reception. 5:30 p.m. al Veteran Business Development Call Us For Personalized role of Executive Director. Position desires minimum 4 year Detroit Regional Chamber. Mark Freed, president and CEO, Priority Council. Free. Constitution Hall, 525 Service: (313) 446-6068 Bachelor’s Degree with 10 years HVAC or Hackel, Macomb County executive, Health; and Steven Brill, attorney W. Allegan, Lansing. Contact: construction Association industry experience CLOSING TIMES: Monday 3 p.m., highly preferred. Must have strong experience is the keynote speaker. $10, or $25 and author of American’s Bitter Pill. DTMB-micontractconnect@ one week prior to publication date. in following areas: public relations, meeting / planning, labor relations, industry relations, at the door, for members. Non- Detroit Marriott Renaissance Cen- michigan.gov. Please call us for holiday closing times. governmental affairs, budgeting / financial members pay $590 and cost inter. $45 DEC members, $55 guests FAX: (313) 446-0347 management, Association Management administration. Excellent communication and cludes membership. Contact: Mag- of DEC members, $75 nonmem- Calendar guidelines. Visit E-MAIL: cdbclassified @crain.com problem solving skills required. Candidate must gie Oldenburg, (313) 596-0482; bers. Ticket sales end at noon April crainsdetroit.com and click “Events” INTERNET: be willing to travel 4-6 times annually. Full time www.crainsdetroit.com/section/classifieds position comes with excellent Salary, Car email: moldenburg@detroit 29. Contact: (313) 963-8547; email: near the top of the home page. Allowance, Health Benefits, Vacation and 401K. chamber.com; website: detroit [email protected]; website: Confidential Reply Boxes Available Send resume or email request for full job Then, click “Submit Your Events” description at [email protected] chamber.com/events. econclub.org. from the drop-down menu that will PAYMENT: All classified ads must be Application deadline April 30, 2015. appear. Fill out the submission form, prepaid. Checks, money order or THURSDAY UPCOMING EVENTS Crain’s credit approval accepted. then click “Submit event” at the Credit cards accepted. Advertise your America’s Bitter Pill. 11:30 a.m.- Energy Conference & Exhibition bottom of the page. 1:30 p.m. Detroit Economic Club. 2015. 8 a.m.-3 p.m. May 5. DTE En- See Products and Services in More Calendar items can be Speakers: Nancy Schlichting, CEO, ergy and the Engineering Society of Crainsdetroit.com/Section/Classifieds Crain’s Detroit Business Henry Ford Health System; Michael Detroit. Christopher McGill, vice found at crainsdetroit.com/events. for more classified advertisements 20150427-NEWS--0026-NAT-CCI-CD_-- 4/24/2015 5:57 PM Page 1

26 CRAIN’S DETROIT BUSINESS // April 27, 2015 SURF, from Page 3: Dude, it turns out that the Motor City makes waves in the water

pack of shirts literally everywhere we went,” he said. “It went to a truck full to a van full to a house full of Oxford’s biz makes waves with stand-up paddle boards stuff. I asked myself, ‘Am I doing my real job, or am I doing this?’ ” The recession in 2009-10 made The Detroit Surf Co.’s surfboards they don’t come from pre-formed The company’s standard carbon the choice for him. come from Blkbox Surf LLC in Oak- foam blanks. Instead, Campbell fiber race/touring model retails for “It was hard to making money as land County’s Oxford Township. creates them from scratch to client $3,399 and is the most common SUP an independent internet access Blkbox was founded in 2003 by specifications, from dimensions, it sells. That would translate into rev- company,” he said. Matt Campbell, a Rochester native materials, rails and fins prefer- enue of about $680,000 for last year. He closed his consulting business who is a former pro snowboarder ences, and graphics, said Adrienne “The boards we’re making are in 2010 and devoted his time to the and surfer. Shifflett, a Blkbox Surf co-owner. design and performance oriented,” Detroit Surf Co., creating more de- The company originally created “They’re fast but really stable,” Lennert said. Most of the boards signs and products, and adding custom traditional surfboards hand- she said. “Our boards literally are are for racing and touring rather items aimed at women and children. shaped from scratch by Campbell, sold all over the world.” than wave riding. Not long after, he ran into Matt but has switched to almost entirely Stand-up paddleboards — users Blkbox will begin to offer some Campbell, a veteran surfboard stand-up paddle boards. stand atop the wider than tradi- apparel in the next year, but it will shaper and owner of Blkbox Surf LLC Demand for SUP boards, as tional surfboards and navigate remain primarily a board maker. in Oakland County’s Oxford Town- they’re known, has exploded. with a paddle — are especially “Our main business model is to ship. They eventually decided to pro- The sport has almost doubled in popular in the Great Lakes because expand our hard goods,” Lennert duce Detroit Surf Co. boards. popularity from 2010, when it was they don’t require waves. said. The boards are not for rookies, first tracked by the Washington, “It’s really taken over the bulk of The company intends to create but intended for veteran surfers and D.C.-based nonprofit Outdoor Foun- the business,” said Matt Lennert, more entry-level boards, and cre- paddle boarders, said Tuzinowski. dation’s annual outdoor sports par- co-owner of Blkbox Surf. ate more price points. They serve mainly as a loss leader to ticipation report, through 2013, Almost all of Blkbox’s 200 boards The research and manufactur- give the company credibility. when it hit nearly 2 million U.S. par- made last year were SUP boards, ing happens in a 2,400-square-foot “We’ve had a good working rela- ticipants. he said. The handful of traditional pole barn on Campbell’s property, tionship with them over the years. It’s a Traditional surfing has held surfboards it made in 2014 were which includes two sanding rooms [BLKBOX SURF LLC] great company. Their products are 100 steady at about 2.6 million partici- custom jobs for longtime clients. and a glassing shop. The company BlkBox founder Matt Campbell creates percent Michigan-made,” Tuzinowski pants, according to the report. It offers custom-made carbon does testing on a nearby lake, his boards not from pre-formed foam said. “We essentially just started as an Blkbox’s boards are custom from fiber race boards that retail for Lennert said. blanks but from scratch to customer apparel company and moved into beginning of the build, meaning $4,000 to $5,000. — Bill Shea specifications. being an actual surf company.” Detroit Surf Co. also sells branded snowboards and skateboards. right now. Detroit Surf Co.-branded T-shirts Tuzinowski said he ships goods Pearl Jam frontman Eddie Vedder retail for $19.99 to $24.99, while a daily, and has sold to clients in every More than apparel and Quicken Loans founder and Chair- Dickies work shirt is $49.99. The state. It’s the apparel that brings home man Dan Gilbert have worn Detroit company logo is on a Carhartt “It’s almost to the point where it’s the money, about $400,000 a year Surf Co. clothing, Tuzinowski said. hoodie that sells for $59.99, while overwhelming,” he said. “I get up other hoodies are $34.99 to $44.99. every day at 6:30 a.m. and work A dozen styles of hats range from until 7 p.m. I’m going to need more $14.99 to $29.99. The company also assistance in doing so.” sells accessories such as mugs, dog He has not yet cracked the brick- leashes, posters and vinyl stickers. and-mortar surf apparel market in A Detroit Surf Co. surfboard or California or Hawaii. stand-up paddleboard sells for $1,900. “Most of the surf shops don’t “The margins aren’t very big on want to clear shelf space. It’s frus- the boards. It takes a long time to [GLENN TRIEST] trating,” he said. “Really, where the shape them, about 40 hours, and Detroit Surf Co.-branded T-shirts retail money is at is the soft goods.” the lead time to get one made is six for $19.99 to $24.99. The Hawaiian surf shops are domi- to eight months,” Tuzinowski said. nated by the major corporate brands. The company has sold fewer directly online or at stands. “They won’t entertain any indie than 50 surfboards and stand-up Detroit Surf Co. has space in Fer- brands. It’s all word-of-mouth,” paddleboards. ndale’s Rustbelt Market that retails Tuzinowski said. “It’s a tough way to make money. soft goods but also has had boards But people still want Detroit Surf It’s low margin, a lot of overhead. It’s on display for sale. Co. gear, he said. not a way to get rich. It’s a fun part of “Most people know that as our de “In the surfing world, you have the business, but it’s not what facto store,” Tuzinowski said. something unique, it’s immediately makes the money,” he said. The company’s apparel is carried cool because nobody has it,” he said. Other equipment is more lucra- at retailers such as Shinola’s sister The company’s brand also has tive, with better profit margins. store, Willys Detroit, and Caruso- caught the eye of marketers. More recently, Tuzinowski added Caruso in Birmingham, which plans Ford Motor Co.’s advertising Detroit Surf Co.-branded snow- to display Detroit Surf Co. surf- agency, Dearborn-based Team De- boards, selling about 50 this past boards in a window clothing display troit, took a Detroit Surf Co. snow- winter, he said. Engineering, design this year and sell some of its skateboard, surfboard and skateboard to and production, done in Grand boards in addition to the apparel. the South by Southwest festival in Rapids, is being worked out to han- “I’m pretty stoked to work with Austin, Texas, in 2013, he said. dle more orders for next winter. him,” said CarusoCaruso co-owner Tuzinowski is conflicted about “That’s a growing segment for Lennon Caruso. “If I’m going to put his company’s growing success. us,” he said. “We’re looking for next in it my window, I believe in it.” “The more employees and more winter to be pretty big.” revenue I had, the more headaches Lifestyle brand The snowboards retail for $449. I had. I’m trying not to repeat those The company also sells about Tuzinowski’s business strategy is mistakes I made. Keeping myself 400 branded long-board skate- to sell premium surf apparel and happy is most important,” he said. boards annually, which are shaped develop it into a lifestyle brand. Up- Tuzinowski, who has trademarked on the West Coast but are hand-fin- scale retailers don’t want inexpen- dozens of names and URLs similar to ished and assembled here, he said. sive, mass-produced product on Detroit Surf Co., said he has been ap- They retail for $75 to $139.99. their shelves, he said. proached with investment offers, but “Hardest part is trying to get re- “There are a million people in De- he’d rather sell the company entirely tailers locally to carry our products. troit selling Detroit-branded apparel. to one of the major brands. I’m not really sure why that is. I We’re not a $10 T-shirt company,” he “I might entertain something like don’t have any real stores that will said. “You want to be a premium that,” he said. “We’re growing expo- sell my stuff,” he said. “The clothing brand, selling premium products. nentially.” Ⅲ will sell like mad.” We’re focused on being a unique Bill Shea: (313) 446-1626 Instead, he sells the hard goods brand.” Twitter: @Bill_Shea19 20150427-NEWS--0027-NAT-CCI-CD_-- 4/24/2015 6:15 PM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 27 MARXMODA,from Page 1: Selling ‘living office’ idea

tate Services’ Madison Building. you’re really going to lead in Michi- Scarcello Associ- MarxModa has already secured gan, you’ve got to be on both coast- ates Inc., a com- new business with companies big lines.” mercial interior and small, Marx said, from Quicken design firm she Seeking office space Loans to General Motors Co., General founded 34 years Electric Co. and Michigan State Uni- Since merging the two Herman ago. versity. Other local clients include Miller dealers into one, Marx said Aside from Jet’s Pizza and Hour Media LLC. he has been touring available Herman Miller, Marx said he expects to double downtown Detroit office sites with Harrell Scarcello: they include the company’s combined $80 mil- 12,000-20,000 square feet of space, Office furniture now Grand Rapids- lion in revenue within five years, with the goal of moving the compa- fits way folks work. based Steelcase adding employees as needed. ny’s headquarters from Pontiac by Inc. (NYSE: SCS), “I’m blessed to have access to the year’s end. Holland-based Haworth Inc. and people who run these companies “If you look at greater Detroit, it’s Pennsylvania-based Knoll Inc. because I’ve worked with them,” probably half of the Michigan mar- (NYSE: KNL). Marx said. “The whole philosophy ket,” he said. “The focus on people “Everyone is realizing that ... how of this company will be: How do we moving into downtown Detroit cre- you support people, enable them to combine business leaders’ strate- ates significant opportunities for work efficiently and innovatively, is gies with the way people work?” us.” a critical driver of how successful The work environment also is So far, most of the downtown your business is going to be,” Scar- key in talent attraction and reten- spaces Marx has toured are not cello said. tion, Marx said. large enough. He said he may de- The consolidation of FMG and “We’re going to appeal to the cide to split the headquarters be- WorkSquared into a single Herman business strategy of people who run tween Detroit and Birmingham . Miller dealer leaves only Haworth businesses and create environ- MarxModa would have nearby with two dealers in the region, she ments that enable them to achieve competition in Detroit from at least said. Marx merging the two com- results,” he said. one office furniture dealer. Airea panies is a departure from past Inc., a Farmington Hills-based Ha- consolidation in the market, Scar- Metro Detroit roots worth office furniture dealer owned cello said, given that both were vig- After 15 years of working with the by former Detroit Pistons guard Vin- orous companies when he ac- top leaders of big companies like nie Johnson, opened a downtown quired them. GE, GM, Ford Motor Co., Delphi Au- studio on the ground floor of the Past consolidation that has hap- tomotive Corp. and GlaxoSmithKline Compuware Building in 2013. pened, such as Knoll dealer Interior on everything from mergers and ac- Airea outfitted the studio with Dynamics Inc. in Troy folding quisitions to global manufacturing nontraditional work zones ranging around 2008 and Steelcase dealer strategy, sales excellence and talent from a single-person lounge to a 40- Workplace Integrators in Bingham attraction and retention, Marx said person conference space and set it Farms closing before that were the he and his wife decided it was time up as a place people can hang out result of more distressed business- to come home to metro Detroit. while Web surfing or meeting with es, she said. The Detroit-area natives both clients. “The stakes are high for the man- had lost their fathers and made the The goal, President David Kiwior ufacturers to have their local dealer decision to move closer to their said at the time, was to gain new base be very strong,” Scarcello said. Ⅲ mothers, who still live here. As he clients as they became familiar with Sherri Welch: (313) 446-1694 was informing clients that he the options Airea offered. Twitter: @SherriWelch planned to wind down his business, Facility Matrix Group and Work- Marx said one of those clients had a Squared were Nos. 2 and 3, respec- proposal for him. tively, on Crain’s 2014 list of the Herman Miller Inc. President and largest office furniture dealers, each CEO Brian Walker had worked with with $33 million in revenue in 2013, Marx and said he could see the behind National Business Supply A SUITE DEAL alignment be- Inc. in Troy, which had over $91 mil- tween his man- lion revenue. agement con- Facility Matrix Group, which sulting work and even has an office “nest”— or an el- the Holland, evated thinking space — at its Pon- Mich.-based tiac site, also ranked No. 20 among manufacturer’s Crain’s coolest places to work last “living office” year. concept pairing New ways of working Brian Walker: strategic office Saw Marx, Herman design and its The nontraditional work envi- Miller alignment. products to help ronment that aligns with corporate clients meet goals is something that has grabbed business goals. Eberspaecher North America Inc.’s The approach takes a fair attention as it plans a 40,000- amount of problem-solving, Walker square-foot office space as part of said, something he’d seen Marx do an expansion to triple the size of its as he worked with the Herman Brighton facility to more than Miller team. Marx, who worked in 300,000 square feet, said program sales for Herman Miller years ago, manager Frank Zsirai. also has a great network of people Zsirai said the company sought he knows not only as clients but as an outside perspective to develop a friends, Walker said. working environment “that helps us Entertain clients, reward employees or celebrate with “In our business, if you can find a perform better as an organization family and friends in one of our party suites while enjoying leader people are attracted to, and a team.” a spectacular view of Comerica Park. This special you’re going to find customers ... as Some examples of features package* includes: well.” planned in the Brighton space: sit- • 15 tickets, pizza, pop, chips & dip plus three parking passes Walker said Marx had the same to-stand tables and more open en- • Personal wait staff, private restrooms, indoor and outdoor thoughts on where Michigan is vironments to foster collaboration seating headed and where the opportuni- between designers and engineers. ties are. All large office furniture makers Call 313-471-2222 and mention this ad to receive a special “Detroit has got, I think, a real are providing nontraditional work gift with purchase. shot at being one of the comeback environments that better fit the way stories of the next decade,” Walker folks are working, said Harrell Scar- *Good on select dates in May. said. “I think we both saw that if cello, president of Southfield-based 20150427-NEWS--0028-NAT-CCI-CD_-- 4/24/2015 5:51 PM Page 1

28 CRAIN’S DETROIT BUSINESS // April 27, 2015 BERINGEA,from Page 1: U.K. firm wants to raise the curtain on Michigan manufacturing

one British patent for its curtains and where he can in- “It makes sense for us to be in the fund and the ProVen Growth & In- gan operations and about $225 mil- has applied for four international stall equipment U.S.” said Hawkins. “The health come Venture Capital Trust plc fund. lion more in its U.K. operations. patents for its Fantex products. to make curtains care market here is four and a half Now, Beringea plans a matching All In One Medical is a dba for Dis- All In One has launched the prod- and blinds. He times the market in the U.K.” amount to finance the U.S. expan- posible Cubicle Curtains Ltd., which uct line in the U.K. and is in the said he will be Hawkins, a former managing sion. was founded in 2003. Its curtains process of getting approval from the back in a month partner with the consulting firm Ac- The funding may come from its and blinds will continue to be mar- U.S. Food and Drug Administration to to look at more centure, said the firm’s disposable Michigan Growth Capital Partners keted under the All In One brand. sell it here. It won’t need FDA ap- sites. curtains, which go around a pa- Fund LP, which was formed in 2008 In 2009, the company won what proval for another line of powders John Hawkins: He said the tient’s bed, and the window blinds with an investment of $150 million it claims to be the U.K.’s most presti- and lotions it will market to pet own- Expects $75 million in company plans to are treated with antimicrobial from the state of Michigan’s retire- gious corporate award, the Queen’s ers of dogs, cats, horses and the revenue forAll in One. have $75 million a chemicals to reduce hospital infec- ment system. Award for Enterprise Innovation, for cleanup needed for their bedding or year in revenue in tions such as MRSA, or methicillin- The growth fund was a compo- its disposable curtain. sleeping areas. five years, split equally between the resistant staphylococcus aureus. nent of the $300 million InvestMichi- According to Charlie Rothstein, John Hawkins, chairman of All In U.S. and the U.K., with 300 U.S. em- A year ago, Beringea invested gan program the state started that Beringea’s senior managing director, One, was here last week looking at ployees. He currently employs about $4.5 million in All In One from two year. All In One has found a U.S. chemical commercial sites to lease in the 40 in the U.K., where the company has funds it manages in London: the Beringea has $335 million in as- company to range of 20,000 to 25,000 square feet revenue of about $5 million. ProVen Venture Capital Trust plc sets under management in its Michi- make the Fantex line for sale in the U.S., pending FDA approval, and plans to eventually find a Michigan manufacturer. Charlie Rothstein: The products “There are so many are water soluble opportunities.” and are claimed to be nontoxic. Rothstein said Beringea plans to license Fantex formulations for use by other manufacturers, such as for antimicrobial clothing and in running shoes, and has begun negotiations with a major clothing manufacturer in the U.K. “There are so many opportunities,” he said. In a demonstration at Beringea’s headquarters, Malcolm Moss, a founding partner at Beringea who runs the London business, which operates as Beringea LLP, poured some of what is called ab- sorbent spill powder into a small plastic Malcolm Moss: bowl containing Did the product an inch of fluid. demo himself. Thirty seconds later, the fluid and powder had formed a sponge- like mass that could be picked up and thrown away. Moss said the powder can be used to clean up blood spills or urine from household pets, and as the sponge forms, it lifts the blood or urine out of whatever surface it is on, including carpets. Hawkins said the company has distributors in the Middle East, Scan- dinavia and Australia and is looking to add distributors in other regions. Earlier in April, Beringea LLC and Beringea LLP invested about $13 million of a $19 million round in D3O, a maker of a soft, shock-ab- sorbing material used in impact- protection products, with applications for many industries, including sports, military and work wear. That, too, had another Michigan connection. Recently, D3O introduced a line of flexible protective gloves that were designed with the help of the Biomechanical Engineer- ing Center at Wayne State University. Beringea plans to have the center help in further product development. Ⅲ Tom Henderson: (313) 446-0337 Twitter: @TomHenderson2 20150427-NEWS--0029-NAT-CCI-CD_-- 4/24/2015 6:15 PM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 29 NO-FAULT,from Page 1: Proposal could cut $1B from state health care CRAIN’S DETROIT BUSINESS comes up short of covering costs. What Senate Bills 248-49 do time to exceed the initial $545,000 www.crainsdetroit.com Changes have been proposed re- benefits cap. peatedly to Michigan’s 42-year-old Any medical providers who give care to a patient covered by no-fault “I don’t think the new premium Editor-in-Chief Keith E.Crain insurance law, though most were personal injury protection can collect no more than 150 percent of what will be any different than the cur- Group Publisher Mary Kramer,(313) 446-0399 Medicare would pay for the same services. or [email protected] defeated by elected officials or at rent assessment, because they’re Associate Publisher Marla Wise,(313) 446-6032 the ballot box, or died at the end of Auto insurers must offer a two-year, $100 per-vehicle annual rollback on the going to do the same projection for or [email protected] Executive Editor Cindy Goodaker,(313) 446-0460 past legislative sessions. Few have insurance premium that goes to fund the Michigan Catastrophic Claims the number of people in a 12- or [email protected] seen this much traction. Association. month period who will need bene- Managing Editor Jennette Smith,(313) 446-1622 In the last legislative session, two fits going forward. Their cash flow or [email protected] The Michigan Catastrophic Claims Association, which funds long-term care Director, Digital Strategy Nancy Hanus,(313) 446-1621 of the biggest bones of contention costs for the critically injured, would become a legacy fund after a new that first year will have very little or [email protected] were whether unlimited lifetime association is created for future claims. going out, although that will of Managing Editor/Custom and Special Projects medical benefits should continue for course escalate over time,” he said. Daniel Duggan,(313) 446-0414 or [email protected] patients with no-fault claims and Home health care providers who are family members would be capped at Senior Editor/Design Bob Allen,(313) 446-0344 $15 per hour for attendant care services, starting three years after the law Projections and costs or [email protected] how much health care providers Senior Editor Gary Piatek,(313) 446-0357 should be paid for caring for them. takes affect. Attendant care is a large portion of the claim association’s Passage of the bills isn’t a given. or [email protected] The unlimited medical benefits re- reported costs each year. Trained health professionals, including family Opposition groups like the Coalition Web Editor Kristin Bull,(313) 446-1608 or [email protected] members, are allowed to bill at higher rates. Research and Data EditorSonya Hill,(313) 446-0402 main under the current legislation. Protecting Auto No-Fault, com- or [email protected] The version passed by the House Unlimited lifetime medical benefits for no-fault claimants — a bone of posed of health care providers, at- Web Producer Norman Witte III,(313) 446-6059, Committee would limit charges for contention in previous attempts to reform no-fault insurance — remains torneys and others, have said early [email protected] Editorial Support (313) 446-0419; care of no-fault claimants to 150 per- unchanged. polling and research showed the YahNica Crawford,(313) 446-0329 cent of the Medicare reimbursement bills were just shy of majority sup- Newsroom (313) 446-0329,FAX (313) 446-1687 rate, much less than what is paid port on the House floor — though TIP LINE (313) 446-6766 now. “I’m willing to work with any dent victims in recent years. that was before the two-year premi- REPORTERS Jay Greene, senior reporter Covers health care,insurance, Despite the fact that the bills have group on this issue, including the The new claims would collect its um rollbacks were added. energy,utilities and the environment.(313) 446-0325 or been passed by the Senate, some say hospitals, but I would need them to premiums from drivers — not in- House Republicans who are ex- [email protected] they remain uncertain of exactly explain to me why it’s necessary and surers, as the current association pected to meet and discuss the bills’ Amy Haimerl, entrepreneurship editor Covers entrepreneurship and city of Detroit.(313) 446-0416 or how they would play out if passed. fair to make those insurers pay does — and would pay claim costs progress this week are also likely to [email protected] “I’m always concerned when we three or four times as much.” directly rather than reimbursing in- hear from Oakland County Executive Chad Halcom Covers litigation and the defense industry. (313) 446-6796 or [email protected] do something up here that ends up A 2011 story in Crain’s cited a surers as well. The bills would also L. Brooks Patterson, himself an acci- Tom Henderson Covers banking,finance,technology and with more questions than answers,” table distributed by the Coalition require the legacy fund to continue dent victim requiring long-term care biotechnology.(313) 446-0337 or [email protected] said opponent Sen. Mike Kowall, R- for Auto Insurance Reform, a group until the last of its claim payments and an opponent of no-fault reform. Kirk Pinho Covers real estate,higher education,Oakland and Macomb counties.(313) 446-0412 or [email protected] White Lake Township. “I think (the of insurers and business organiza- are paid before it can transfer all its Patterson said last week he has Bill Shea, enterprise editor Covers media,advertising and mar- bill) is going to create more havoc tions, that showed no-fault reim- remaining assets to the new associ- been texting and emailing state leg- keting,the business of sports,and transportation. than it’s going to repair.” bursement to providers for a spinal ation and dissolve. islators, protesting their plans to (313) 446-1626 or [email protected] Dustin Walsh Covers the business of law,auto suppliers,man- X-ray of $227.55 in the Detroit area, The average catastrophic claim change the current no-fault law. Health care hit? ufacturing and steel.(313) 446-6042 or [email protected] while Medicare would pay $55.89 has about a 30-year life expectancy, Sherri Welch, senior reporter Covers nonprofits,services,retail Yet to come The new cost structure could re- and workers’ comp, $77.06. said Peter Kuhnmuench, executive and hospitality.(313) 446-1694 or [email protected] shape the financial landscape of An MRI of the neck was reim- director of the Insurance Institute of Appel said she is concerned that ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 health care. Laura Appel, senior vice bursed at $3,258.68 under no-fault, Michigan — and since the fund reg- the premium rollbacks for con- Sales Manager Tammy Rokowski president of strategic initiatives at but at $483.98 under Medicare and ularly takes on claim costs for chil- sumers are temporary and could Senior Account Executive Matthew J.Langan the Michigan Health and Hospital As- $769.63 under workers’ comp. dren and teens, it could last much even be offset by large premium in- Advertising Sales Christine Galasso,Catherine Grace,Joe sociation, said some initial research longer. creases drivers might pay into the Miller,Sarah Stachowicz New MCCA same as old Classified Sales Manager Angela Schutte,(313) 446-6051 by that organization on the bills’ im- But every no-fault payer, includ- new Catastrophic Claims fund, if it MCCA? Classified Sales Lynn Calcaterra,(313) 446-6086 pact said health systems statewide ing the new association and the lega- has a deficit and insurers aren’t re- Audience Development Director Eric Cedo could take a revenue cut of more The major difference between cy one, benefits from the new cost quired to cover it. Events Manager Kacey Anderson than $1 billion per year from reim- the new MCCA and the legacy or- control measure, Kuhnmuench and “If that new fund fails, you now Creative Services Director Pierrette Dagg bursement changes. ganization appears to be that the Leonard both said. That means the have $545,000 of coverage. That’s all Senior Art Director Sylvia Kolaski Marketing Coordinator Ariel Black “And that (estimate is) just from new entity will be subject to Free- old MCCA could pay out millions you have,” she said. Special Projects Coordinator Keenan Covington the numbers we can look at, not dom of Information Act requests less per year than what was project- Kuhnmuench said the premium Sales Support Suzanne Janik,YahNica Crawford counting post-acute care or atten- and generally be more accountable ed when the association set its pre- rollbacks at $100 per vehicle repre- Editorial Assistant Nancy Powers dant care or some kinds of nursing to the public. miums, and its assets could last years sent an immediate revenue cut of Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos home care expenses that aren’t our The legacy organization has re- longer before they’re depleted. more than $690 million for auto in- (costs),” she said. peatedly declined to provide details This year, for example, insured surers statewide, with no guarantee CUSTOMER SERVICE Main Number: Call (877) 824-9374 But Rep. Tom Leonard, R-DeWitt of its finances and currently is em- motorists are paying $186 per year that their new claim costs will or [email protected] Township, said the 150 percent of broiled in litigation seeking to make through their premiums to the match that drop. Subscriptions $59 one year,$98 two years.Out of state,$79 Medicare expense cap is also slightly it subject to FOIA. MCCA, including more than $150 to “We don’t know the actual sav- one year,$138 for two years.Outside U.S.A.,add $48 per year above the industry average for what More openness is an upside, but cover all the future benefits of this ings until the changes come in, and to out-of-state rate for surface mail.Call (313) 446-0450 or (877) 824-9374. insurers currently pay under con- there’s some risk to insurance pay- year’s policy claims. The association claims come in under the new law,” Single Copies (877) 824-9374 ventional health care plans, he said. ers. is reducing the annual fee to $150 he said. “We can try to control Reprints (212) 210-0750; or Alicia Samuel at [email protected] “The obstacle some of us can’t The current association earned July 1. claims costs a little bit, but we’re not To find a date a story was published (313) 446-0406 get over is that auto insurance com- more than $360 million in invest- The new fund, meanwhile, controlling the frequency and or e-mail [email protected] panies are paying three or four ment income in fiscal 2014, accord- would have no assets other than severity of accidents.” Crain’s Detroit Business is published by Crain Communications Inc. times what commercial health in- ing to its latest financial report. That what motorists pay in once it’s certi- John Cornack, president of the Chairman Keith E.Crain surers pay for some of the same ex- fund also has been paying just over fied, and insurers would not be li- Coalition Protecting Auto No-Fault President Rance Crain penses. If they (hospitals) want to $1 billion per year in reimburse- able for any shortfall if its claim and of the Eisenhower Center, an Treasurer Mary Kay Crain Executive Vice President/Operations talk what is fair, I need them to help ments to its member insurers, costs exceeded projections. The Ann Arbor residential services center William A.Morrow me define what is fair,” he said. across nearly 15,000 covered acci- current fund collects a $29.71 for people with brain injuries, said he Executive Vice President/Director of Strategic Operations charge to cover past cost deficits, is concerned the bills primarily re- Chris Crain Executive Vice President/Director of Corporate Operations which reduces to a $4.50 charge this duce insurance companies’ respon- KC Crain INDEX TO COMPANIES July. The new fund would have to sibilities to patients without neces- Vice President/Production & Manufacturing These companies have significant mention in this week’s Crain’s Detroit Business: collect its shortfall out of future pre- sarily protecting consumers from Dave Kamis Chief Financial Officer Thomas Stevens miums. exorbitant premiums over time. Chief Information Office Anthony DiPonio A.J. Desmond & Sons Funeral Directors .... 10 Herman Miller ...... 1 Gloria Freeland, executive direc- “We can’t sit by and watch and G.D. Crain Jr. Founder (1885-1973) Archive DS ...... 5 Insurance Institute of Michigan ...... 29 Beringea ...... 1 Loomis Sayles...... 7 tor of the new association, said be- see if these things will tally up a dif- Mrs. G.D. Crain Jr. Chairman (1911-1996) Blkbox Surf ...... 26 Marx Consulting Group ...... 1 coming a legacy fund doesn’t mean ferent way for the (insurance) in- Editorial & Business Offices Comerica Bank ...... 7 MarxModa ...... 1 1155 Gratiot Ave.,Detroit MI 48207-2732; Compuware ...... 15 Meijer ...... 13 all of the association’s future costs are dustry. They’re already doing just (313) 446-6000 Crain’s Detroit Business ...... 17 Michigan Bankers Association ...... 6 immediately known. New claims fine. We’re not even asking for our Cable address: TWX 248-221-5122 AUTNEW DET Detroit Lions ...... 30 Michigan Catastrophic Claims Association...... 1 enter the system from years past all money back on what we’ve paid,” CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published Detroit Surf...... 3 Michigan Health & Hospital Association .. 29 weekly,except for a special issue the third week of October, Diplomat Pharmacy ...... 16 Price Funeral Home ...... 10 the time, she said, as costs climb he said. “We just ask that they (in- and no issue the fourth week of December by Crain Commu- Donnelly Penman & Partners ...... 7 Redico ...... 4 above the insurers’ benefit limits. surers) quit attacking a system that’s nications Inc.at 1155 Gratiot Ave.,Detroit MI 48207-2732.Peri- odicals postage paid at Detroit,MI and additional mailing of- Eberspaecher North America ...... 27 SMART ...... 14 Kuhnmuench also said the new running well.” Facility Matrix Group ...... 1 Stryker ...... 16 fices.POSTMASTER: Send address changes to CRAIN’S FirstMerit Michigan ...... 7 Village of Bloomfield ...... 4 fund’s assets should grow at first as Dustin Walsh and Tom Henderson DETROIT BUSINESS,Circulation Department,P.O.Box 07925, Detroit,MI 48207-9732.GST # 136760444.Printed in U.S.A. Ford ...... 14, 18 Whirlpool ...... 11 contributed to this report. premiums exceed payouts, giving it Entire contents copyright 2015 by Crain Communications Inc. General Motors ...... 12 WorkSquared ...... 1 Chad Halcom: (313) 446-6796 Gibbs Planning Group ...... 4 Yazaki North America ...... 13 time to grow into its mission. Many All rights reserved.Reproduction or use of editorial content in new insurance claims will also need Twitter: @chadhalcom any manner without permission is strictly prohibited. 20150427-NEWS--0030-NAT-CCI-CD_-- 4/24/2015 5:58 PM Page 1

30 CRAIN’S DETROIT BUSINESS // April 27, 2015 New Lions CFO tackles complex finances

By Bill Shea Allison Maki (It’s a small business owned by NFL’s female CFOs [email protected] one of America’s iconic and wealthi- Ⅲ As an auditor with the Detroit of- Age: 40 est families, the Fords, and the club Allison Maki, Detroit Lions fice of Ernst & Young LLP during the Job: CFO, senior vice president of administration, is estimated by Forbes to be worth Ⅲ Karen Murphy,Chicago Bears heaviest fallout from the calamitous Detroit Lions. $960 million.) Ⅲ Kelly Flanagan, Jacksonville accounting scandals of the early Aside from the $145 million in Past: Assurance and advisory business services Jaguars 2000s, Allison Maki’s annual busy manager with Detroit office of Ernst & Young LLP player salaries currently on the books Ⅲ Christine Procops, New York season became 12 months long. (1997-2004); joined Lions in 2004. — and millions more for coaches, “I was ready for a change,” she front office personnel, trainers, and Giants College: Bachelor’s degree in economics and said. stadium and other staff — the Lions Ⅲ Jeanne Bonk, San Diego management from Albion College. One of her clients at EY was the pay out significant sums for things Chargers Detroit Lions, and the team’s then- Personal: Lives with husband, Ryan, in South Lyon such as the utilities for Ford Field. Ⅲ Cipora Herman, San Francisco CFO, Tom Lesnau, knew she was with their twins. Without revealing specifics, it appar- 49ers ready to do something different. ently costs a lot of money to keep the “He knew I was ready to leave,” lights on and air-conditioning run- Ⅲ Karen Beckman, Seattle she said. “He said, ‘Why don’t you league has provided us a little more rowing money or tapping lines of ning. Seahawks come join us here?’” stability in offering up programs credit, if such moves are deemed the “There are a lot of costs that go Ⅲ Jenneen Kaufman, Tennessee So she did, joining the football that maybe we want to be a part of most efficient way of paying the bills. under looked (by the public),” she Titans team as its director of finance in us, more support from a finance “From a financial perspective, said. Source: Detroit Lions 2004 after seven years with EY (her perspective.” cash is king. It really rules the roost,” One of those costs, which the first job after graduating from Albion Ensuring compliance with ac- she said. Lions won’t discuss publicly, is the College in 1997). counting rules and the NFL’s finan- Her boss sings her praises. debt on Ford Field. The team pri- going to look like and what will be On April 21, the Lions announced cial regulations are part of her daily “Allison is an incredibly intelli- vately financed an estimated $325 the financial impact on us,” she said. that Maki, 40, was promoted to CFO routine as CFO. gent, dynamic and pragmatic exec- million of the stadium’s $500 million Cars to footballs and senior vice president for admin- “You want to look at, in general, utive,” Lewand said. “She has added construction cost, with the remain- istration. She’s one of eight female what other requirements you have enormous value to the Lions over der being a mixture of public fund- Maki thought her Ernst & Young CFOs in the 32-team National Foot- for league reporting look like,” she the years, both in our finance de- ing and corporate contributions. career would take her somewhere ball League. said, adding that bolstering cyber- partment and as part of our inde- Maki was a speaker during the other than professional football. That means she has oversight of security is one of her priorities on pendent audit team. In the process, 2013 Michigan Women in Finance an- “Because you’re in Detroit, it’s so every penny coming in or going out her to-do list. she has earned the respect of many nual meeting at Detroit Athletic manufacturing and automotive of the Lions organization, from the On the football side, she’ll work in- around the NFL and in the commu- Club, and biographical information based,” she said. Her early work as hundreds of millions in revenue from creasingly closer with her direct boss, nity of financial institutions.” published about her indicated that an auditor included tier-one and ticket sales and from the NFL’s enor- Lions President Tom Lewand, when she had recently led a debt refi- tier-two suppliers, and miscella- Big small business mous shared broadcast contracts, to it’s time to negotiate player contracts. nancing for the team — believed to neous companies such as a ceme- the eye-popping salaries paid to star She has to ensure the money is While fans often think of NFL be the remaining stadium debt. tery — and the Lions. players Matthew Stafford and Calvin there to pay everyone. clubs as large corporations, Maki has She declined to discuss the refi- “It was so heavily automotive Johnson. “When we get close to free agency, a different perspective: “At the end of nancing specifically, but did ac- dominated, I thought at the time I Maki now oversees the Lions’ fi- Tom and I will be in more communi- the day this a small business with a knowledge that such moves are part would go into that industry. It’s not nance group, human resources and cation,” she said. Those discussions lot of dollars running through it, but of her job. like I came out of college thinking I facility operations at the Lions will include using cash on hand, bor- there are a lot of costs.” “We’re always challenging our had to get into one of the sports headquarters and training facility in costs. If there are other avenues to teams in town,” she said. “I wanted Allen Park, and she will assist in the mitigate current costs we have, we’re to see where accounting takes me.” oversight and management of key willing to go down those roads,” she Some of Maki’s predecessors business partners, the team said. said. were auditors, too, including Chuck She takes over from Luis Perez, But it’s the roster that is where Schmidt and Tom Lesnau. who becomes senior vice president most of the money goes. Lesnau, a longtime front office of business development and strat- “In this business, your biggest ex- figure with the Lions, is now a sen- egy after four years as CFO. pense is always going to be your ior adviser to the club. Schmidt player payroll,” she said. went on to run the team as execu- Managing the money The team’s front office was criti- tive vice president and de facto Maki is the top accountant for a cized earlier this year for its handling general manager before quitting in business whose labor expenditures of contract negotiations with free 2001. get plenty of public scrutiny. agent defensive tackle Ndamukong NFL teams became more sophis- Forbes.com in August estimated Suh, who left the Lions for a six-year, ticated corporate entities as the that the Lions had $254 million in $114 million deal with the Miami Dol- sums of money generated by the 2013 revenue, with a nearly $16 mil- phins that includes $60 million in broadcast contracts and merchan- lion operating income loss. guaranteed cash. dising grew into the billions The team doesn’t discuss financial Detroit offered $102 million with throughout the 1990s and 2000s, specifics, and league insiders dispute $58 million guaranteed, the Detroit and Maki was hired to help navigate Forbes’ estimates. Based on the lim- Free Press reported on March 9, cit- increasingly complex finances that ited annual financial disclosure from ing unnamed sources. were under regular scrutiny. the publicly owned Green Bay Pack- It was Maki’s job to ensure the “As the business kept getting big- ers, it’s known that the Lions would Lions had the finances in place to ger and bigger, we realized we need- have received about $187.7 million handle such a deal. Lewand and ed someone with public accounting from shared national revenue in team General Manager Martin May- expertise,” Lesnau said. “She fit in 2013, and even more last season. hew are the chief negotiators with well with everybody, and she ex- Maki and her staff are tasked with the players — meaning Maki doesn’t celled at grabbing new tasks as the handling all of the money in an effi- get the venom from fans or pundits. league would push them down, cient manner. Instead, she gets to spend her such as more reporting and finan- “We are here to control costs,” time on financials and planning for cial accounting from the teams.” she said. the future, and modernizing how Maki did grow up cheering for The NFL is a $12 billion organiza- the team handles its money. the Lions. tion, and the most popular sports “Keeping up with where the rest The Northville native is the league in the country, meaning it’s of the world is going. It is so special- granddaughter of Italian immi- constantly in the spotlight — and ized,” she said. “Are we paying our grants who became Lions fans the league headquarters keeps close suppliers and vendors the same when they arrived here, she said, tabs on the 32 clubs’ financials. It way we did 20 years ago? Are we au- and before having children, she at- has to because its billions are tomating enough? We’ve got the tended University of Michigan foot- shared among the teams. [NATHAN SKID] right resources to take care of things ball games and high school games “You want to make sure you have Allison Maki controls and X’s and O’s of the Lions’ money, from revenue that comes unique to the Lions and sports. her husband helped coach. Ⅲ good interaction with the league fi- in from ticket sales and broadcast contracts to the salaries given to players such as “I’m interested to see maybe 10 Bill Shea: (313) 446-1626 nance staff,” Maki said. “I think the Matthew Stafford and Calvin Johnson. years out from today, what is digital Twitter: @Bill_Shea19 20150427-NEWS--0031-NAT-CCI-CD_-- 4/24/2015 6:19 PM Page 1

CRAIN’S DETROIT BUSINESS // April 27, 2015 31 WEEKON THE WEB/APRIL 18-24 RUMBLINGS Display Group’s Stein Mart to enter region with move Packard site into former Borders in Rochester Hills

As television commercials airing will honor the careers and commu- work continues locally may have been hinting for nity service of four local women: some time, Stein Mart is entering Marlene Boll of The John A. & Mar- Renovations are moving forward the Southeast Michigan market. lene L. Boll Foundation; Donna Inch, with the Display Group’s $750,000 The Jacksonville, Fla.-based dis- chairman and CEO, Ford Land; makeover of a building on the site count clothing and housewares Grace Lieblein, vice president, global of the former Packard auto factory. store is moving into the former Bor- quality, General Motors Co.; and The updates are for a building at ders location in Rochester Hills. Andra Rush, chairman, Rush Group. the Detroit complex known as Construction is underway to add Boll is receiving a Trillium Award, Building 22, AP reported. The event 5,600 square feet to the 51,000- a lifetime achievement award. specialist made the 255,000- square-foot building, said Sara The awards, to be held at the square-foot warehouse into its new [NATALIE BRODA] Roediger, manager of planning for MGM Grand Detroit, are hosted by headquarters and celebrated last SIGNS OF SPRING: Ifthese newly blooming daffodils next to the Belle Isle Con- the city of Rochester Hills. the nonprofit Michigan Women’s week. Renovations include a new servatory in Detroit make you smile, check out a series of spring scenes in the Stein Mart will occupy 32,000 Foundation, which also hosts a West 10,000-square-foot event space. D in an online gallery at crainsdetroit.com/photo. square feet, adjoining the Pet Smart Michigan achievement program. location also operating from the See www.miwf.org. ON THE MOVE class of Reach, a Chicago-based plant in Wayne, in the company’s building at 1122 Rochester Road Ⅲ David Lamb was named presi- accelerator program for technol- first large-scale layoff of tier-two between Avon and Hamlin roads. State’s newest celebrities dent and CEO of Oxford Bank Corp. ogy companies. wage workers, Automotive News The city Planning Commission to join hall and its subsidiary, Oxford Bank, ef- Ⅲ Eugene, Ore.-based Will reported. approved the project in December. fective May 1. Lamb, 52, replaces C. Leather Goods, a seller of high- The retailer hopes to be in the The Detroit chapter of Variety - James Best, who will remain a con- end, hand-crafted leather bags OTHER NEWS building by June 1, said Rochester The Children’s Charity plans to in- sultant during a transition period. and accessories, is headed for a Hills Mayor Bryan Barnett. duct several local personalities, in- Since 2008, Lamb was president 9,000-square-foot location at Ⅲ The Detroit City Council ap- “The city is really excited to wel- cluding Crain’s Detroit Business and CEO of Southfield-based Hantz 4120 Second Ave. to open Sept. 1. proved a zoning change needed come Stein Mart,” Barnett said. “We Publisher Mary Kramer, into the Holdings Inc. and Hantz Bank. Ⅲ Chesterfield Township- to begin building the $535 mil- think it will be a great regional draw.” Michigan Celebrity Hall of Fame dur- Ⅲ Doug Glazier, chief development based Burtek Enterprises Inc. won lion hockey arena for the Detroit No incentives were provided to ing a May 1 gala. officer at Detroit-based Henry Ford a three-year pact to supply Red Wings, and the Downtown De- attract the retailer, he said. This year’s honorees are Kramer; Health System, left to become exec- Bethesda, Md.-based Lockheed velopment Authority green-lighted After Borders closed in 2011, Fa- Fox 2 co-anchors Monica Gayle and utive director of the Leukemia & Lym- Martin Corp. with exterior and nearly $55 million in construc- mous Furniture operated from the Huel Perkins; and phoma Society, Michigan Chapter in frame components for at least tion contracts for the project. The site, owned by Ramco-Gershenson WJR 760 AM Madison Heights. He succeeds 128 launch systems for U.S. Navy largest was a $50.7 million con- Properties Trust, Farmington Hills. radio host Paul Laura Loughridge, now vice president shipboard missiles. tract with Detroit-based Midwest The Rochester Hills location is W. Smith. of development at the Michigan Sci- Ⅲ Ann Arbor-based Michigan Steel Inc. for structural work. one of 11 new sites Stein Mart plans They’ll join ence Center in Detroit. Angel Fund closed on a second in- Ⅲ Metro Detroit’s suburban to open this year. Other locations past honorees, Ⅲ The Southfield-based National vestment fund of $2.05 million, bus system, the Suburban Mobility set to open include Atlanta; Florida including Broad- Bone Marrow Transplant Link named targeting early-stage investing in Authority for Regional Transporta- (two stores); Southern California way legend Elaine Peggy Burkhard executive director. Michigan tech startups. tion, launched a (three stores); Long Island, N.Y.; Stritch, ABC News She succeeds founding Executive Ⅲ A new five-year pilot pro- “RideSMARTBus” app, available Phoenix; and Virginia Beach, Va. Kramer correspondent Director Myra Jacobs, 74, retiring gram between accounting firm for Android and Apple mobile The Rochester Hills location will Bob Woodruff, De- after 23 years. Burkhard, 49, has Deloitte LLP and Cornerstone devices. Developed by Lansing- be Stein Mart’s second in Michigan. troit Free Press columnist Mitch been public relations and market- Schools will provide enhanced based Gravity Works, it has real- A store in Portage, near Kalamazoo, Albom, retired WXYZ-Channel 7 anchor ing director for the Ann Arbor- math, accounting, problem solv- time bus tracking technology, a opened in 2001. Diana Lewis, and the late author and based Donate Life Coalition of Michi- ing, management and business trip planner and service alerts. Wall Street Journal columnist Jeffrey gan. ethics training to students. Ⅲ Friedman Integrated Real Es- It’s official: Kevyn Orr plans Zaslow. Ⅲ Livonia-based TRW Automo- tate Solutions LLC confirmed the to rejoin Jones Day The black-tie fundraiser to bene- COMPANY NEWS tive Holdings Corp. agreed to sell its Albert Kahn Building and the Fisher fit Variety takes place at Emagine Ⅲ The U.S. Department of Justice linkage and suspension business Building are heading to an online It’s officially official: The man who Royal Oak, beginning at 6:30 p.m. sued Quicken Loans Inc. in U.S. District to Tokyo conglomerate THK Co. auction June 22-24. shepherded Detroit through the Tickets are $150-$350. See Court in Detroit, alleging the De- Ltd. for $400 million. The divesti- Ⅲ The sale of the Pepper Shoe largest municipal bankruptcy in U.S. www.variety-detroit.com. troit-based mortgage lender im- ture is expected to close by the Building in downtown Detroit to history expects to properly originated and under- end of the third quarter. Livonia-based Schostak Bros. & rejoin soon the Volunteers can plant more wrote federally insured mortgage Ⅲ The Detroit Lions signed a Co. has closed. Schostak plans to law firm he left trees at Hantz Woodlands loans. The government alleges that three-year corporate marketing turn it into an additional 42 loft- two years ago. Quicken originated hundreds of deal with New York City-based style apartments with 5,000 Former De- Organizers expect at least 1,000 Federal Housing Administration-in- daily fantasy sports giant FanDuel square feet of first-floor retail troit Emergency volunteers — individuals, business- sured loans between September Inc.; financial terms were not dis- space at the Lofts of Merchants Manager Kevyn es, neighborhood organizations and 2007 and December 2011 that were closed. Meanwhile, the Lions’ Row. Orr will return to others — to show up to plant 5,000 not eligible for the federal program. 2015 schedule includes a fran- the Jones Day of- more trees at Hantz Woodlands on Ⅲ New York-based Ashkenazy Ac- chise-record six nationally tele- OBITUARIES Orr fice in Washing- Detroit’s east side on May 9. quisition Corp., which owned the vised games, including a home- ton May 1, the Holes at Hantz Woodlands, now-shuttered Northland Center, opening Sept. 27 appearance on Ⅲ A. Alfred Taubman, founder of firm announced last week. which is billed as one of the nation’s missed its payment this month on a NBC’s “Sunday Night Football” Bloomfield Hills-based Taubman Gov. Rick Snyder appointed Orr largest urban tree farms, will be pre- $37.43 million loan tied to Eastland against the Denver Broncos. Centers Inc. and prominent local as Detroit’s emergency manager in dug for the 4- to 6-foot tulip poplar Center in Harper Woods. The loan Ⅲ German industrial con- philanthropist, died April 17. He March 2013. Under Orr, Detroit trees; volunteers will simply put the transferred to Needham, Mass.- glomerate ThyssenKrupp AG an- was 91. filed for bankruptcy that July. Orr tree in the hole and cover it with based CWCapital Asset Management nounced plans to invest $869 Ⅲ Elizabeth Weaver, a former stepped down in December 2014 as dirt. LLC due to imminent default. million in North America by 2020 Michigan Supreme Court justice Detroit emerged from Chapter 9. This is the second time a volun- Ⅲ Southfield-based Presbyterian in an effort to profit from in- who stunned her colleagues Orr was hired by New Jersey teer tree-planting will be held, fol- Villages of Michigan and Northville- creased auto production in the when she said she had secretly Gov. Chris Christie this year to help lowing last year’s planting of more based Homestead Home Health Care region. The company operates its recorded their discussions, died fix Atlantic City’s finances. than 15,000 saplings. formed a joint venture to provide North American steel operations April 21. She was 74. The farm is on 15 acres within community-based and in-home in Southfield as ThyssenKrupp Ⅲ John A. (Jack) George, former Event to honor careers, about 150 Hantz-owned acres. The care and services for seniors. Steel North America Inc. and has longtime chief psychologist at service of local women site is in the square mile bounded Ⅲ BoostUp, one of Detroit Venture several regional subsidiaries. Oakwood Hospital, Dearborn, and by Mack and Jefferson avenues and Partners’ portfolio companies, said Ⅲ Ford Motor Co. plans to cut former associate professor at At a Tuesday night event, the St. Jean and Van Dyke streets. it is one of eight companies nation- 700 jobs and eliminate the third Wayne State University, died April Southeast Michigan Women of For more details, see wide to be accepted into the 2015 shift at its small-car assembly 18. He was 82. Achievement and Courage Awards www.hantzfarmsdetroit.com. DBpageAD_DBpageAD.qxd 4/16/2015 8:49 AM Page 1

JOIN US AND SAVE WITHOUT SETTLING GET A $150 ACCOUNT CREDIT FOR YOUR BUSINESS for each smartphone line. New 2-yr activation on a $34.99 or higher plan req’d.

Get the coverage, speed and reliability your business needs with America’s Most Reliable Network. Experience why more small businesses choose Verizon than any other wireless carrier.*

AMERICA’S LARGEST AND MOST RELIABLE 4G LTE NETWORK

CALL: 1.800.VZW.4BIZ | CLICK: vzw.com/business-bill-credit | VISIT: vzw.com/storelocator

* Results based on third-party study. Account credit applied within 2-3 billing cycles. Credit will be removed from account if line is suspended or changed to non-qualifying price plan after activation. Offer expires 5/17/2015. Activation/upgrade fee/line: $40. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee. Offers & coverage, varying by svc, not available everywhere; see vzw.com. While supplies last. Restocking fee may apply. © 2015 Verizon Wireless. I5423