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City Looks to Reinvest After Bankruptcy 20141110-NEWS--0001-NAT-CCI-CD_-- 11/7/2014 5:55 PM Page 1 ® www.crainsdetroit.com Vol. 30, No. 45 NOVEMBER 10 – 16, 2014 $2 a copy; $59 a year ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 Ann Arbor office deep in the Departing state Rep. City looks to Frank Foster: “My drive wasn’t to serve heart of Texas VC firm’s plan in the Legislature until the constitution said I Second Stage couldn’t, but doing something meaningful reinvest after while I was there.” bankruptcy 3 firms overhaul IT and $1.4B focus: Safety, reboot bottom lines, Page 11 systems, blight CRAIN’S BY CHAD HALCOM MICHIGAN BUSINESS CRAIN’S DETROIT BUSINESS Grand Rapids What’s next in the wake of Detroit’s just-con- cluded bankruptcy case? A $1.4 billion city rein- gets cracking vestment spending spree heavily weighted in new financial management systems, public with plan to fix safety and blight-busting. roads, Page 17 With it comes the appointment of a nine-mem- ber Financial Review Commission to supervise that spending, a group that in- cludes Mayor Mike Duggan, This Just In Detroit City Council President AL GOLDIS Brenda Jones and seven inde- PR veteran Bailey to join pendent members. U.S. Bank- Truscott Rossman in Detroit ruptcy Judge Steven Rhodes appealed to Gov. Rick Snyder Longtime public relations Friday to build a commission expert John Bailey is coming A BATTLE LOST, that can keep city officials’ in- out of retirement to join Trus- fluence in check. cott Rossman as its first busi- “It is a plain conflict of in- ness strategist. terest for the mayor and the Rhodes Bailey will be based in the council president to have a vote. It both skews Detroit office of the Lansing- WAR STILL ON the commission’s voting and risks undermin- based pub- ing the commission’s effectiveness in ensuring lic rela- the implementation of the plan,” Rhodes stated tions firm. rank Foster championed the end of discrimination based on sexual in his ruling Friday. Bailey’s orientation and lost his northern Michigan state House seat because “This problem requires that the governor ap- expertise of it. He – and some major state employers – are working to make point members of the commission who are fully includes willing and able to exercise the independent, public re- sure that’s not the end of the story | PAGE 34 skilled and experienced judgment that (the lations F state law) contemplates,” Rhodes said. strategy, DEMS COULDN’T GET OUT VOTE, GOP COULDN’T LAND A SENATE SEAT | PAGE 3 media re- See Bankruptcy, Page 35 lations and Bailey crisis com- munications, and he often speaks on the topic of ethics in business. Bailey founded an epony- Plastech in legal battle over Chinese car contract mous PR firm in 1996 and grew it to $5 million in rev- BY DUSTIN WALSH U.S. District Court Ltd., more commonly known as JAC Plastech and GreenTech are enue before selling it in 2009 CRAIN’S DETROIT BUSINESS for the Eastern Motors. trading jabs in court documents — to Grand Rapids-based Lam- District of Mich- Plastech alleges GreenTech en- all while uncertainty remains on bert, Edwards & Associates. Bai- Julie Brown, the embattled for- gan in Detroit on tered into an agreement this year to whether the U.S. market is even ley remained a managing di- mer CEO of Plastech Engineered Oct. 21 against distribute JAC Motors’ electric ready for Chinese-made cars. rector of the firm until 2011. Products Inc., is back in court six Virginia-based cars, despite a prior exclusive con- Bailey also is the author of years after her company was liqui- WM GreenTech Au- tract agreement between JAC and The Power of Ownership: How dated under bankruptcy. tomotive Corp. Plastech. Deal or no deal? to Build a Career and a Busi- Brown’s new venture, Dearborn- The case centers However, GreenTech attorneys According to the October com- ness and a frequent speaker on based Plastech Holding Corp., is tak- on claims that argue that Plastech refuses to sup- plaint, Plastech Holding signed a the topic of ethics in business. ing action against a company it Brown GreenTech in- ply the defendants or court with a framework agreement in October He is a member of the Pub- says interfered with its relation- tentionally inter- copy of the contract in question. 2010 to allow Plastech to distribute lic Relations Society of De- ship with a Chinese carmaker. fered with Plastech’s relationship JAC Motors, meanwhile, claims troit’s Hall of Fame. Plastech Holding filed a suit in with Anhui Jianghuai Automobile Co. the contract does not exist. See Plastech, Page 37 Yearning for legal peace of mind? ‰ ATTORNEYS AT LAW A BETTER PARTNERSHIP WNJ.com NEWSPAPER 20141110-NEWS--0002-NAT-CCI-CD_-- 11/7/2014 2:34 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS November 10, 2014 MICHIGAN BRIEFS Sit down for this: Office furniture one of “America’s Best Cities for Global Trade,” putting it in its top activity index is highest in 7 years Stryker to pay more than $1B for recalled hip devices 10 “Emerging Cities.” A quarterly index measuring ac- Ⅲ The West Michigan Horticultural tivity in the office furniture indus- Kalamazoo-based Stryker Corp. agreed to pay more than $1.4 billion to cover costs of handling cases Society, owner of the Frederik Meijer try reached its highest point in than $1 billion to resolve lawsuits over thousands of over the recalled hips, so the settlement fell into the Gardens and Sculpture Park in Grand Rapids, bought the United Auto Work- more than seven years last month, hip implants recalled in 2012 after patients complained “low end of the range of probable loss.” ers Region 1-D building last month, MLive.com reported. Holland-based of pain, swelling and metal debris from the devices. Unlike other device makers, Stryker settled be- The Grand Rapids Press reported. Michael A. Dunlap & Associates sur- Stryker will pay a base amount of $300,000 per fore facing a trial over claims their hips suffered The building is named after former veyed industry executives and sup- case to patients who had the devices surgically re- from design flaws and the company failed to warn UAW President Owen Bieber, who pliers, crunched the numbers and moved, Kim Catullo, one of the company’s lawyers, patients about the devices’ risks. grew up in nearby Dorr and also came up with a figure that was the told a New Jersey judge. The device maker faces “It’s odd that they would not try any cases and was a longtime friend of the late best reading since July 2007, before more than 4,000 suits consolidated in New Jersey then settle so early in the litigation process,” said Frederik Meijer. the Great Recession hit the industry state court and federal court in Minnesota. Carl Tobias, who teaches product-liability law at the Ⅲ Michigan State University alum- and pretty much every other sector. Stryker withdrew its Rejuvenate and ABG II de- University of Richmond in Virginia. “Sounds like they vices in July 2012 after warning surgeons they could might have been afraid of facing even bigger liabili- ni Peter and Joan Secchia donated Results show the office furniture harm tissue around the hip and cause other health ty if they didn’t settle them now.” $3 million to support the men’s bas- industry “continues to move on a problems. The company said that it set aside more — Bloomberg News ketball program and to endow the very steady and improving trend football team’s defensive coordina- line,” Michael Dunlap, principal of tor position. Peter Secchia, former the firm, said in a statement. “We Bay County’s Monitor Township. James Hightower, The Associated company for tax reasons, will rank chairman and CEO of Grand are confident that the industry is The automotive parts manufactur- Press reported. In September, the among the world’s five largest Rapids-based Universal Forest Prod- still on course to achieve its best er expects to create 25 jobs. Michigan Court of Appeals ordered providers of over-the-counter health ucts Inc. and former U.S. ambas- year in more than a decade.” the recall be taken off the ballot. care remedies, the company said. Ⅲ Ⅲ sador to Italy, previously funded Election leftovers: School merger Voters in Grand Rapids ap- Warren-based Ascension Health MSU’s softball stadium. MEDC awards $650K to 2 firms proved a change to the city charter Michigan named Kathy Young presi- Ⅲ One reactor unit of the D.C. isn’t, recall wasn’t, mayor can’t be under which nobody can serve as dent and CEO of Kalamazoo-based Cook Nuclear Plant near Bridgman that plan to create 115 jobs mayor or city commissioner for Borgess Health effective early next was taken offline and the other op- Ⅲ In last week’s election, voters in more than eight years, MLive.com year, MiBiz reported, succeeding The Michigan Economic Develop- the Ann Arbor Public Schools turned erated at half power while a storm reported. George Heartwell has the retiring Paul Spaude. Borgess The ment Corp. awarded $650,000 in down a proposal to merge with the passed over Lake Michigan, been mayor for 11 years. Do the Health serves patients across 10 Grand Rapids Press reported. On grants for two projects, The Asso- Whitmore Lake Public Schools, while math. He can’t run for re-election counties in southern Michigan. Nov. 1, both reactors were shot ciated Press reported. voters in the latter district approved Ⅲ next fall.
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