A MEDC's New Focus

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www.crainsdetroit.com Vol. 29, No. 23 JUNE 17 – 23, 2013 $2 a copy; $59 a year

water authority BY CHRIS GAUTZ CAPITOL CORRESPONDENT Salute to Entrepreneurs Doner co-CEOs David DeMuth (left) and Rob Strasberg have worked to make the agency a one-stop shop. Hunting and attraction efforts are returning to the Michigan Eco- nomic Development Corp. with a renewed focus this year. The MEDC has created an export and attraction team that will

GLENN TRIEST focus on targeted industries and high-priority markets as part of a new strategic plan guiding the agency through 2017. Those industries include manu- Restoring the facturing, energy, biosciences, chemical and agriculture. Coun- Entrepreneurs who hit a tries being targeted are Canada, Doner rebuilds afterzoom loss of Mazda account China, Brazil, France, Germany, winning note, Page 11 Japan, Korea, Mexico, Saudi Ara- bia, UAE and the United Kingdom. This Just In BY BILL SHEA 1954; “What would you do for a Klondike bar?” in the The goal for the coming fiscal CRAIN’S DETROIT BUSINESS 1980s; the Vlasic stork; and Dow’s “Scrubbing Bub- year is to target $445 million in in- bles” in the 1970s. Chelsea Milling has recipe well-trafficked basement hallway at the Don- vestment and 4,000 jobs due to at- Also on the wall is the “Zoom Zoom” campaign traction efforts. for $35M in upgrades er advertising agency office in Southfield is that Doner created for Mazda Motor Corp. in 2000. lined with artwork commemorating some of After Gov. Rick Snyder took of- Chelsea Milling Co., the As much as the second-story fire that devastated fice in 2011 and said in his first A the firm’s iconic campaigns — a veritable the agency’s headquarters in August 1996 and re- company behind Jiffy Mix, is marketing hall of fame for creative work that be- State of the State address that planning to invest $35 mil- quired a 22-month rebuild, the Mazda account is there needed to be “more emphasis came part of American culture. something of a demarcation point for Doner. lion in upgrades to its The agency’s creative work on display includes: on economic gardening as opposed Chelsea production facilities The agency, once the nation’s largest independent to hunting,” the organization has Tootsie Roll and its “How many licks does it take to ad firm up until a couple of years ago, lost the $150 over the next five to seven get to the center of a Tootsie Pop?” that hit the air- done just that. years. million Mazda account in June 2010 to a consortium But now, the MEDC is going waves in 1968; Ball Park Franks and its “They plump of WPP Group agencies in California. The upgrades are aimed at when you cook ’em” slogan that debuted in 1966; back to its days of attracting busi- modernizing equipment and Timex’s “Takes a licking and keeps on ticking” from See Doner, Page 29 See MEDC, Page 28 increasing the company’s capacity to make food products sold to customers such as restaurants, schools and hospitals and institutional products sold to large hotels and As Polk sale looms, clan’s last company leader looks to future prisons, said CEO Howdy Holmes. BY BILL SHEA It was the accidental death of his After 14 decades, why sell? The company plans to get a CRAIN’S DETROIT BUSINESS brother in 1985, and the death of his fa- “I think it was really a natural out- Stephen start on the upgrades this ther a year before, that launched Polk, growth of where my own view of the Polk summer, beginning with the Stephen Polk is the fourth and final now 57, unexpectedly onto the fast future was. I’ve got a number of good installation of a new auto- generation to lead his family’s epony- track to executive leadership of the years left in me. (But) I am the only matic bag line for the institu- mous data company — a role and dis- company: By 1989, he was appointed member of the family left in the tional products. tinction he never expected. executive vice president of operations, business,” Polk told Crain’s in an The upgrades will enable Polk gave up his academic study of president in 1992 and CEO in 1994. interview last week. Chelsea Milling to increase wildlife biology to join the city direc- Last week, he made perhaps the Polk’s son just graduated its production from 120 mil- tory and automotive information most profound decision in R.L. Polk’s from high school and would be lion pounds per year to about firm in 1981 in an entry-level job, and history, to sell the company for $1.4 many years from an execu- 360 million to 400 million today he is chairman, president and billion to Englewood, Colo.-based busi- tive leadership role. pounds per year, Holmes CEO of Southfield-based R.L. Polk & ness data giant IHS Inc. in a deal ex- “It made me realize, long- said. Co., which his great-grandfather pected to close after regulatory ap- — Sherri Welch launched 143 years ago. proval in four to six weeks. See Polk, Page 26 LARRY PEPLIN

Deadline for entries Aug. 16 SPONSORED BY MEDIA SPONSORS Be recognized for your best practices that promote healthy employees and healthy workplaces. To enter, please visit crainsdetroit.com/nominate 20130617-NEWS--0002-NAT-CCI-CD_-- 6/14/2013 5:55 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS June 17, 2013

MICHIGAN BRIEFS Haworth’s ‘smarter’ office chair Toronto-based Lundin Mining Corp. said it’s buying an Upper wows judges at trade show Employers collaborate in search of logistics relief Peninsula nickel and copper mine Haworth’s redesign of the office from a subsidiary of London-based lounge chair features room for What started as a conversation between execu- “If these businesses … can find logistics opportu- Rio Tinto PLC for $325 million, The your latte and puts all your tech- tives at Grand Rapids-based Cascade Engineering Inc. nities between and among the companies, that’s a Detroit News reported. nology from tablet to smartphone and Ada-based Amway Corp. about the escalating good thing. It’s the beginning of a novel, collabora- Lundin Mining said it is expect- at your fingertips. costs of logistics has morphed into a monthly meet- tive approach,” he said. ed to close next month on the pur- The concept from the Holland- ing of managers from many of the largest West According to the “State of Logistics” report re- chase of Rio Tinto Eagle Mine LLC in based furniture maker impressed Michigan employers to examine logistics best prac- leased a year ago by the Lombard, Ill.-based Council Michigamme Township. The deal judges, who gave the Harbor Work tices and common issues. of Supply Chain Management Professionals, logistics requires regulatory approvals. Lounge a Best of NeoCon silver “The goal is improved logistics and reduced logis- costs in 2011 grew 6.6 percent from 2010 and 17 per- Lundin Mining said the mine holds award for collaborative seating at tics costs as a percentage of doing business,” Rick cent compared to a recession-induced dip in 2009. high-quality deposits with low tech- last week’s NeoCon 2013 trade Chapla, vice president of business development at From 2003 to 2008, logistics costs increased 50 per- nical and processing risk. Produc- show in Chicago’s Merchandise Grand Rapids-based The Right Place Inc., one of the cent nationwide, according a report from DC Veloci- tion is expected to start late next Mart, MLive reported. conveners of the user group along with the Grand ty, a publication for distribution center executives. year. Designed by Nicolai Czumaj- Rapids Area Chamber of Commerce, told MiBiz. “We “I am 100 percent confident that there is savings Cereal maker Post Foods an- Bront, the chair’s patent-pending want to attack the increasing proportion of business through collaboration,” said Josh Lunger, public nounced plans to invest $30 million integrated work surface includes a that these companies spend on logistics.” policy coordinator with the Grand Rapids Chamber. in a West Michigan facility, creat- sliding plywood tablet and suede The group includes logistics managers from some “Some companies already do it. You’ve seen the big ing 92 jobs, the Battle Creek Enquir- seat wing, which securely keeps of the region’s largest companies who have been furniture makers … bring in products and materials er and WOOD-TV reported. The contemporary work tools comfort- meeting monthly since the start of the year, Chapla together, even though they’re direct competitors. It plan includes closing a plant in Cal- ably at hand. There’s even a sec- said. saves them all money, so why not?” ifornia. The company could be in ond cup holder in the chair’s line for property tax abatement in matching ottoman for the visitor Battle Creek. The Michigan Strategic longtime relationship with the Campus demolition, as its vacant plan to hire more employees, while who drops by for a chat. Fund has awarded a $700,000 busi- university — will develop plans to North Hall, West Hall and Speech 4 percent expect to reduce staff. The lounge retails for $1,600 to ness development grant. turn WMU’s 34,000-square-foot, and Hearing Center will be coming Statewide, Manpower reported that $3,100, and a matching ottoman three-story East Hall into a $15 down by this fall, said Cheryl from July to September, 24 percent Find business news from sells for $750 to $980. For a look, million Alumni Center, the Grand Roland, WMU executive director of the companies interviewed plan around the state at crainsdetroit visit www.haworth.com/neocon. Rapids Business Journal reported. of university relations. to increase hiring, and 4 percent ex- .com/crainsmichiganbusiness. East Hall, completed in Kalama- pect cuts. What’s old(est) on campus will zoo in 1905, was the first building MICH-CELLANEOUS created for WMU, but it has main- CORRECTIONS be new again for WMU alumni ly been vacant in recent years. In its just-released employ- By 2015, Western Michigan Univer- The renovation work is sched- ment outlook survey, Manpower The headline “Oncologists struggle to find chemo meds after hit to sity is hoping to have a new home uled to begin immediately, as led ranked the Grand Rapids-Wyoming Medicaid” on Page 3 of the June 10 edition should have said for Bronco alumni. by TowerPinkster principal Bjorn metropolitan statistical area as the “Medicare.” WMU recently announced Green. Gene Hopkins, owner of third-best in the nation, the Grand The CON Roundup on Page 18 of the June 10 issue should have said TowerPinkster — a Grand Rapids- Ann Arbor-based Hopkins Burns Rapids Business Journal reported. the Oakwood Heritage Hospital will initiate a mobile lithotripsy host site and Kalamazoo-based architectur- Design Studio, will work on design. According to the area survey, 28 with a 10-year lease for $2.6 million. An incorrect description of the al and engineering firm that has a WMU is also planning for East percent of companies interviewed project was listed.

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June 17, 2013 CRAIN’S DETROIT BUSINESS Page 3

Inside Work begins on water authority Doug Ross-led group aims to improve Jalen Rose academy, debt. The city would either permit Page 4 Orr plan could save $70M annually the new authority, MAWSA, to operate the DWSD through a conces- BY KIRK PINHO and Sewer Authority. Once a deal is to the state Department of Treasury sion agreement or via a lease of What’s CRAIN’S DETROIT BUSINESS struck regarding regional gover- in May, that DWSD restructuring water department assets. nance and financial terms, the au- could save $50 million to $70 mil- MAWSA would be able to issue cooking The spigot has been opened for a thority would issue new bonds lion annually. new bonds on Series A and Series new regional authority to take with lower interest rates to save On Friday, Orr reiterated that B debt, using liens on net revenue with Iron over the Detroit Water and Sewerage money for the city. the water department was a top generated by authority assets as Department. The information on the authori- priority and provided more details collateral, according to Orr’s re- Chef Emergency Manager Kevyn Orr ty was presented as part of a meet- on the proposed authority. structuring plan. The authority Michael and his consulting team on Friday ing with city creditors, insurers to The DWSD, which serves nearly could hold property, collect water released a restructuring report de- creditors and labor unions. 1,100 square miles and communi- and sewer taxes, contract and take Symon, tailing, among other ideas, plans Orr estimated in his financial ties in eight Southeast Michigan Symon for a new Metropolitan Area Water and operations report, presented counties, has about $5.8 billion in See Water, Page 27 Page 25

Company index These companies have significant mention in this Daifuku Webb week’s Crain’s Detroit Business: Altarum Institute ...... 17 American Promise Schools ...... 4 The Big Salad ...... 12 revenue jumps, BSpot ...... 25 Contech Castings ...... 6 CutTime Productions ...... 14 Daifuku Webb Holding ...... 3 Dearborn Mid-West Conveyor ...... 28 spurred by sales Detroit Regional Chamber ...... 28 Detroit Water and Sewerage Department ...... 3 Doner Partners ...... 1 Ducati Detroit ...... 3 Fata Automation ...... 28 of smart carts Food & Water Watch ...... 27 Globe Development ...... 20 Jackets for Jobs ...... 15 BY CHAD HALCOM Jalen Rose Leadership Academy ...... 4 CRAIN’S DETROIT BUSINESS JEM Tech Group ...... 13 New technology, a fresh mix of products and cus- Jervis B. Webb ...... 3 tomers and a strong comeback among U.S. au- Load One Transportation & Logistics ...... 20 tomakers are driving growth for conveyor and bag- Medcart Specialty Pharmacy ...... 15 gage systems maker Daifuku Webb Holding Co. in Metavation ...... 6 Farmington Hills. Michigan Economic Development ...... 1 The company’s expansion into automated guided Michigan Nonprofit Association ...... 17 vehicles, or smart carts, that ferry equipment along Mopec ...... 25 magnetic tape paths, has spurred sales to its manu- New Urban Learning ...... 4 facturing and warehousing customers, said Brian Nuspire Networks ...... 15 Stewart, who in April became president, chairman Oakland University ...... 30 and CEO of the holding company for various U.S. O’Keefe ...... 27 subsidiaries of Osaka, Japan-based Daifuku Co. Ltd., Phimation ...... 11 including Jervis B. Webb Co. Play-Place for Autistic Children ...... 15 NATHAN SKID/CDB But Stewart also estimates its traditional auto- PMA Consultants ...... 11 Charlie Knoll is opening the first Michigan dealership to sell Ducati motorcycles exclusively. motive industry customer base has recently grown Revstone Industries ...... 6 to account for about 30 percent of sales volume. R.L. Polk ...... 1 That’s a far cry from the lowest ebb of the global Roast ...... 25 recession and bankruptcy reorganizations of Roxbury Group ...... 20 Chrysler and General Motors in 2009. Back then, auto Skidmore Studio ...... 29 Bike biz built for two? was only about 1 percent of revenue, and not a sin- Superfly Kids ...... 15 gle order had come from that industry worth over Team Detroit ...... 29 TT Motorcycles ...... 3 New Ducati dealer puts competition in gear See Webb, Page 28 Walbridge Aldinger ...... 20 W.K. Kellogg Foundation ...... 16 BY SHERRI WELCH cluding the northern showroom, parts CRAIN’S DETROIT BUSINESS and service areas. Auto Europe is retaining the southern showroom in the build- Charlie Knoll started out in the motor- ing, said Knoll, principal of Westland- cycle business washing bikes at his fami- based CK Investments LLC. ly’s Harley-Davidson dealership in Burling- The dealership is expected to open in ton, Iowa, at age 9. mid-July. Now, at 28, he is opening the first Knoll has hired six salespeople for sales Department index Michigan dealership to sell exclusively of motorcycles, parts and merchandise, BANKRUPTCIES ...... 4 high-end Ducati motorcycles. and he’s hoping to bring in three more BUSINESS DIARY ...... 23 And he’s going head to head with a vet- within the next week or two. eran racer and dealer, Clinton Township- He declined to give a revenue projec- CALENDAR ...... 21 based TT Motorcycles co-owner Bob Lep- tion for the dealership but said he expects CLASSIFIED ADS ...... 25 pan, for a share of the Southeastern to sell 150 Ducati motorcycles annually, at KEITH CRAIN...... 8 Michigan Ducati market. prices ranging from $9,000 to $30,000, LETTERS...... 8 Knoll’s Ducati Detroit is co-locating with within two years. That would put gross MARY KRAMER ...... 8 Auto Europe Inc. in its Woodward Avenue revenue for the dealership in the range of location north of 14 Mile Road in Birming- JOHN SOBCZAK OPINION ...... 8 $1.35 million to $4.5 million. CEO Brian Stewart stands amid a friction drive system, ham, leasing about 6,200 square feet in the PEOPLE ...... 24 See Ducati, Page 27 which along with the smart cart has helped boost roughly 7,500-square-foot building, in- company revenue. RUMBLINGS ...... 30 WEEK ON THE WEB ...... 30 Crain’s on Twitter Don’t let summer slip by THIS WEEK @ Follow Crain’s staffers by grabbing Check out what the weekend holds in store with “10 their handles at things to do in Detroit,” posted every Thursday at WWW.CRAINSDETROIT.COM crainsdetroit.com/twitter. crainsdetroit.com/tenthings. 20130617-NEWS--0004-NAT-CCI-CD_-- 6/14/2013 5:55 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS June 17, 2013 Ross-led charter management group aims to improve Jalen Rose academy

BY CHAD HALCOM the more-established startup oper- end of its three-year contract. CRAIN’S DETROIT BUSINESS ations of New Urban Learning, “But the plan is, after we come which already operates the Uni- aboard in July in time for the acad- Doug Ross, who departed as De- versity Prep schools system, in- emic year to get underway in the troit Public Schools’ chief innova- cluding University Yes fall, to have tion officer in February, gets back Academy in northwest the new sys- into the education restructuring Detroit. Management tem imple- business July 1, when his American The organi- “ mented by Promise Schools organization as- zation re- share(s) a day one,” he sumes the management of Jalen places Opera- said. “And Rose Leadership Academy in De- tion common there is no troit. Graduation, a reason to be- He isn’t the only one returning nonprofit belief that ... lieve it can’t home through the new initiative. management begin to American Promise, a newly any student organization (have an) ef- formed division of nonprofit char- created by the fect on day ter academy New Urban Learning, of ... should be Jalen Rose one.” which Ross is founder and board Ross said chairman, landed a three-year edu- leadership able to rise as board, in managing American cation service provider contract in Promise also May to become the new charter the school. Cindy high as their own is working management organization at Jalen Schumacher, execu- on a “replica- Rose. tive director of the God-given talent ble and scal- The new organization, of which Gov. John Engler Center and hard work will Ross is president, plans to expand for Charter Schools at able” model to manage 10 more such schools, Central Michigan Uni- take them . of education comprising 8,000 students, within versity, which charters ” for improv- its first seven years, he said, and Jalen Rose, said the ing perfor- Changing the odds Doug Ross, could line up a second school con- university board has a mance in American Promise Schools tract as early as next January. five-year contract charter in our clients’ favor Joining Ross in the new project with the school but schools, and are Melissa Hamann, a former had some discussions will find new business from a mix deputy chief of staff for DPS emer- with the charter about getting of newly formed charters in need gency financial managers Robert back on pace to meet some perfor- of management and schools that Bobb and Roy Roberts, as CEO of mance targets in that contract. have recently come under pres- American Promise; and Joe Ten- “We did have conversations that sure to improve performance or busch, founder and principal of if you continue doing things as you face closure under their agree- have been, you’re not going to be Rowe-Clark Academy of Science and ments with the universities and meeting your goals. So the (char- Math in Chicago, who returns to other institutions that charter and ter) board did some review of their Detroit to be superintendent. regulate them. “Joe had made a lot of progress own into the situation and determined they aren’t where they want Schumacher said the Engler with the students in that area to be, and took action by doing Center recently completed a reau- (Chicago), and since he is from De- some due diligence on multiple thorization review for 14 of the 59 troit, we knew those are usually (service) providers that could schools it charters that had their the most susceptible people we can help,” Schumacher said. contracts lapse on June 30. One of convince to come back and help in Securities fraud and shareholder rights “We don’t tell them there is any them, the Academy of Flint in Mt. the city,” Ross said. Automotive supplier disputes Shareholder and partnership disputes particular provider they have to Morris Township, has not been re- “But all the people in the man- Commercial and business lawsuits Family law and probate litigation choose, but with American newed and is expected to close agement share a common belief Promise, the board thought this June 30, while the others should be that it’s a part of the social con- was a good renewed for terms ranging from tract that any stu- 248-841-2200 match.” one year to 10 years, depending on dent, regardless of millerlawpc.com Tenbusch said their performance levels, she said. their individual The plan is, after Rowe-Clark, Jalen Rose is not in a reautho- circumstances, “ founded in 2007 as rization review this year, but the should be able to we come aboard in part of the Noble rise as high as university does continuous perfor- July ... to have the Network of Charter mance monitoring and has found their own God- Schools through- given talent and it was not on pace to meet its cur- new system out Chicago, has rent goals. hard work will nearly 600 stu- In addition to Detroit, Ross said, take them.” dents in a implemented by day American Promise could also seek Jalen Rose, an predominantly to manage charter schools in other open-enrollment, one. African- urban markets, including Grand public charter ” American neigh- Rapids, Flint, Saginaw, Lansing high school that Joe Tenbusch, Rowe-Clark Academy borhood on that opened on De- of Science and Math city’s west side and Kalamazoo. troit’s northwest and managed to Chad Halcom: (313) 446-6796, side in September place 100 percent [email protected]. Twitter: 2011, should have more than 250 of its 2011 graduates with various @chadhalcom high school freshmen, sophomores colleges. and juniors when the new academ- He also said he had been in dis- ic year begins this fall. cussions with Ross since January When businesses face the organic demands Need growth That would mean an operating and has been looking for an oppor- of growth, purchasing goods, or even to budget of at least $2.8 million tunity to bring a similar model of capital? make payroll, Crestmark’s service and based on per-pupil state education charter school education to his na- innovative working capital solutions can be funding and private contributions, tive Detroit since last year. BANKRUPTCIES the answer. He also said he believes Ameri- but Ross said the academy could The following business filed for bank- Providing accounts receivable fi nancing and have an operating capacity of can Promise can meet the expecta- ruptcy protection in U.S. Bankruptcy asset-based lending to small- and mid-sized nearly 450 students after it boosts tion that Jalen Rose, as a Michigan Court in Detroit June 7-13. Under businesses nationwide for over 16 years. recruitment and expands to a full Future Schools initiative grant re- Chapter 11, a company files for reorga- four-year curriculum. cipient, can meet the initiative’s nization. Chapter 7 involves total liquidation. American Promise was created expectation of 85 percent high Contact us today! RL Management Group LLC, 985 Mar- this year as a division handling school graduation, 85 percent col- Matt Dekutoski shall Lakes Road, Dexter, voluntary www.crestmark.com turnaround management of exist- lege enrollment and an average 21 Chapter 11. Assets: $125,300. Liabili- 888.999.8050 Anntreal Hemmingway-Smith ing charter schools, Hamann and score on the American College ties: $34,778. Ross said. It will stand apart from Testing (ACT) assessment by the — Ross Benes DBpageAD_DBpageAD.qxd 6/4/2013 9:12 AM Page 1

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Page 6 CRAIN’S DETROIT BUSINESS June 17, 2013

60$//2)),&(Ř+20(2)),&( U.S. sues to recover more Outstanding Selection For Small Professional Ofﬁce or Home Ofﬁce  Free Design Assistance  Customization - Revstone pension plan assets Sizes & Finishes  Professional Installation  Contemporary or Traditional BY HAZEL BRADFORD Dow Jones News Service report- and horse farm near Paris, Ky., CRAIN NEWS SERVICE ed Wednesday that Revstone said in northeast of Lexington. FEATURING court documents filed Tuesday that Last Monday, Department of La- The U.S. Department of Labor is its indirect subsidiary Contech Cast- bor attorneys asked the court to suing pension trustees of two sub- ings LLC, a 60-year-old Southfield- consolidate the cases, arguing “vir- sidiaries of Southfield-based Revs- based automotive die casting busi- tually identical fiduciary miscon- tone Industries LLC and an invest- ness, isn’t among the assets the duct by Hofmeister, Tew and oth- ment adviser to recover $4.9 company placed in Chapter 11 but ers,” according to court documents. million in defined benefit plan as- that it is seeking bankruptcy court Fairfield Castings and sets that the agency claims were approval of the sale “out of an abun- Fourslides are owned by irrevoca- misused. dance of caution.” ble trusts of Hofmeister’s children. The suits are related to lawsuits Crain’s reported in February Hofmeister is chairman of Fair- filed in August against Metavation on the crumbling of the Revstone field Castings and Fourslides. The LLC, a Revstone subsidiary and ve- empire, which once had $600 mil- Fairfield Castings and Fourslides hicle parts manufacturer, which lion in revenue. The company filed lawsuits allege that Hofmeister are seeking recovery of $34 million 6287+),(/'ō752< Chapter 11 bankruptcy protection and other plan trustees engaged in 129,ō/$.(6,'( in plan assets. Dec. 3 after a Grand Traverse a series of prohibited transactions, *5$1'5$3,'6 Meanwhile, Revstone reportedly www.gormans.com County 13th Circuit Court judge including improper use of funds SPBT0404 has received a $54.4 million offer ordered the company to pay nearly for real estate purchases and loans from a Shiloh Industries Inc. sub- $27 million owed to its largest cred- to interested parties. sidiary for its auto parts manufac- itor, Clearwater, Fla.-based Boston The lawsuits are asking for ap- turing business and is seeking court Finance Group LLC. pointment of an independent fidu- permission to sell those assets. The latest lawsuits, filed May 30 ciary for the plans and an order to also in U.S. District Court in Lex- prohibit the defendants from serv- ington, Ky., allege similar fiducia- ing as fiduciaries or service ry breaches in the defined benefit providers to any plan covered by plans of Fairfield, Iowa-based the Employee Retirement Income foundry Fairfield Castings LLC and Security Act. Madison Heights-based manufac- Calls to Revstone Industries and turer Fourslides Inc. the law firms representing the de- The 2012 lawsuits involved two fendants were not returned. Metavation plans, Hillsdale Salaried When the Metavation lawsuits Pension Plan and Hillsdale Hourly were filed, Revstone denied the al- Pension Plan, in Lexington, Ky. The legations in a statement that ac- Pension Benefit Guaranty Corp. an- knowledged some deficient trans- nounced in March it would assume actions affecting less than 10 responsibility for both plans. percent of plan assets that the com- The Labor Department’s Em- pany reported to the Employee ployee Benefits Security Adminis- Benefits Security Administration. tration began investigating the Revstone’s nonbankrupt assets, Hillsdale plans in February 2009 in addition to Contech Castings after Hillsdale Automotive was and Metavation, include Gladewa- acquired by Revstone subsidiary ter, Texas-based Texas Die Casting; Cerion and the name was changed and San Luis Potosi, Mexico-based to Metavation. Eptec. All of the lawsuits name Revs- According to the 2012 lawsuit, tone Industries Chairman George filed Aug. 9 in U.S. District Court, Hofmeister and investment adviser Eastern District of Kentucky, Bernard Tew, managing director of Hofmeister, on behalf of the plans, Tew Enterprises LLC and Bluegrass In- also used pension assets to buy and vestment Management LCC. lease property, buy customer notes Crain’s reports detailed how and pay adviser fees and allocate Hofmeister and his companies income and expense payments be- have been shrouded in controver- tween the pension funds. A crimi- sy over allegations of fraud and final investigation was also nancial mismanagement, includ- launched by the U.S. government ing allegations that Hofmeister into Hofmeister’s role, according raided the employee pension funds to court records. to keep Revstone afloat and fund From Pension & Investments, his expensive lifestyle, including a with additional reporting by 2,000-acre, $40 million mansion Crain’s Detroit Business. Crain’s story wins national award Crain’s Deputy Managing Editor The story detailed the buying Daniel Duggan has been given an and selling from 2003 to 2012 by the award by the National Association of New York-based Northern Group, Real Estate Edi- which bought five buildings, let tors for a 2012 them all go into foreclosure and story he wrote walked away from Detroit with $95 about a group of million in unpaid loans — yet still Detroit in- seemed to have made a profit. vestors. Judges for the award said: “This The Boca Ra- story, which relied heavily on pub- ton, Fla.-based organization lic documents, was an in-depth ex- gave him a sil- amination of a Detroit property empire. It revealed that although Duggan ver award in the category of Best many of the properties were fore- Report in a Weekly Business closed, the investors still made a Newspaper for the story “Structur- profit. The writing is clear, direct al Damage.” and explanatory.” DBpageAD_DBpageAD.qxd 6/6/2013 5:20 PM Page 1

From Left to Right: David Van — Art Van VP of Merchandising, Sheilah P. Clay — Neighborhood Service Organization, Susan Goodell — Forgotten Harvest, Sheri Mark — North Star Reach, Chuck Saur — Conductive Learning Center, Cecilia Chesney — Big Brothers Big Sisters of Northwestern Michigan and Kim Yost — Art Van CEO.

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Page 8 CRAIN’S DETROIT BUSINESS June 17, 2013 OPINION MARY KRAMER New opportunity for Right project worth waiting for The original infield is still visi- Tiger Sta- Detroit’s revival — and the op- ble, flanked around the infield by a dium field portunity for such people magnets three-level apartment building such a pro- as the X Games — should bring in and in the outfield by an L-shaped ject? some developers to take a second Detroit in Orr plan office building and a three-level The site look. Corktown did not roll up and apartment complex. Sections of has been die after the stadium closed, as t seems somewhat odd that one outcome of Kevyn Orr’s the outfield walls still stand. And con- many predicted. Michigan Avenue deficit reduction plan for Detroit is a $1.25 billion invest- there’s a weathered old scoreboard tentious is home to some of Detroit’s I ment in blight reduction and improved public safety. in right field that is going to be re- for the De- strongest people magnets, like But the truth of the matter is this: Living within a budget is stored. troit Eco- Slows Bar BQ and the Mercury important, but cost-cutting doesn’t drive success. Eventually No, it’s not in Corktown. nomic Burger & Bar. This ball field project is in Indi- Growth And the neighborhood itself you have to invest. That’s true for business, and it’s true for anapolis, under construction by a Corp., seems even stronger than during cities as well. market-rate developer in that city which the baseball days. And Orr has repeatedly made the point that a city whose citi- that has been generating interest feels stung by baseball park fans So as apartment rental demand zens don’t feel safe will find it hard to prosper. Put in business from potential tenants as well as who had ideas but no financing for exceeds capacity in downtown and terms, you can’t drive revenue growth through taxes paid with- baseball fans and historians. the site that the Tigers left in 1999 Midtown, perhaps it’s time for in- out people and businesses to pay them, the more the better. As the Indianapolis Business for Comerica Park. vestments in contiguous neighbor- Journal reported in May, the pro- Then, last week, The Detroit hoods, too. Another positive outcome: Finally moving water opera- ject was complicated, but the News reported that Major League The right project is worth wait- tions to a regional authority. There are still many details to be pieces are falling in place. The city Baseball is thinking about a youth ing for. And hopefully it is one that worked out, but discussions have begun with various officials approved selling bonds for infra- training facility at the field. preserves the infield and the sense on how an authority would be constituted, what value Detroit structure improvements like light- The same report quoted George of history that the corner of Michi- would receive for assets and how a transfer would take place. ing and sidewalks. Then it’s up to Jackson, CEO of DEGC, saying the gan and Trumbull represents. This is long overdue. (See story, Page 3.) John Watson, the managing mem- offer “is a scam” without any fi- Mary Kramer is publisher of ber of Core Redevelopment LLC, to nancial backing. Even so, none of this is a matter of rejoicing. Many are pay- Crain's Detroit Business. Catch her complete the work on what’s called Scam? Major League Baseball? take on business news at 6:10 a.m. ing a price for the decisions delayed, deferred and mishandled “Stadium Lofts,” built around the Maybe the devil is in the details Mondays on the Paul W. Smith show that got the city in this mess. Unsecured creditors likely will former Bush Stadium, a minor and sorting out if this is viable or on WJR AM 760 and in her blog at end up with only a few pennies on the dollar of what they’re league ballpark. simply a local promoter trying to www.crainsdetroit.com/kramer. owed. Retirees will find out this week how much their pen- So why, we might ask, couldn’t float a balloon. E-mail her at [email protected]. sions and benefits will be affected. And the list goes on. Because creditors have far less leverage in bankruptcies involving government units than those involving companies — U.S. Bankruptcy Court can’t order Detroit to sell assets — a Chapter 9 seems less and less likely. Orr still has many months of work ahead of him here, but if LETTERS Detroit emerges from EM control with some investment in the future and without having gone through bankruptcy, it will be more than many, perhaps most, expected. We would hope that the dozens of candidates hoping to be Auner challenges WSU claims elected mayor or council representatives are paying careful at- Editor: deficit resulted from the improper tention. We need strong, responsible leadership for our second Crain’s Detroit Business Wayne State University Presi- transfer of personnel from other chance. welcomes letters to the editor. dent Allan Gilmour’s comments grants onto the clean room ac- All letters will be considered for in “A chemical reaction over lab” publication, provided they are count, including personnel who (June 3) and “Wayne State dealt signed and do not defame didn’t do work there. Also, per the Michigan back in chase for biz fairly with the lab” (Letters, June Delphi clean room agreement, the individuals or organizations. 10) show the administration’s at- Letters may be edited for length university was supposed to match Michigan is back in the hunting business, at least a little. tempt to defame my character. and clarity. funds for its operation and mainte- I have been accused of claim- As Lansing correspondent Chris Gautz reports on Page 1, Write: Editor, Crain’s Detroit nance, which to date would have ing the Smart Sensors and Integrat- the state is adding business attraction infrastructure after Business, 1155 Gratiot Ave., totaled more than $1 million had ed Microsystems clean room as my Detroit, MI 48207-2997. the match payments been made. spending much of Gov. Rick Snyder’s first term building “eco- personal property. This is not true. Email: [email protected] I have been accused of not be- nomic gardening” programs designed to help businesses al- The SSIM clean room was created ing a principal investigator on sig- ready here grow. by donations for the SSIM program nificant peer-reviewed grants in It’s a good idea. Michigan, like many other states, in the with me as principal investigator. ring the equipment to a different several years. Virtually all of the past has become too caught up in an incentive strategy that This fact is verified by WSU lab manager. funds I have brought in have been Board of Governors documents and I have been accused of having seems more about the chase than economic growth. But attrac- highly competitive peer-reviewed by the restricted donation agree- an “unsustainable budget situa- federal funding for research. My tion is part of a balanced economic development strategy and ment with the donor Delphi, which tion.” My operations ran a surplus we’re glad to see it getting a little more attention. has now been violated by transfer- in every year, except one. In 2008, a See Letters, Page 9 KEITH CRAIN: Detroit deserves Election Day choices Mike Duggan should be back on And to have Tom Bar- It would seem that him, we should be concentrating on order, we have to make sure that the ballot. Through a technicality, row, who spent time in there are too many peo- the economy and not letting all all the candidates have some sort a judge threw Duggan’s name out prison for bank fraud ple who are going to do these political issues get in the way. of plan to expand the economy. of the mayoral primary election and tax evasion and who everything possible to I have also hoped that we hear That’s something that can’t be in last week. This is after the Detroit has run for mayor three try to stack the deck more about what all the candidates the EM’s game plan. Election Commission, overseeing times before this year against giving Detroi- want to do to improve the economy I have hopes that Duggan gets city elections, had approved him and lost, present this in ters the opportunity in in Detroit. back on the ballot, and in the time for the ballot. court is nothing more the primary for the You can get the financial house in remaining we hear from all the The fact is that Mike Duggan than a travesty of justice. choices they deserve. order for our city, but if we don’t fig- candidates about their plans for should be on the ballot so Detroit If the people of De- It could be an interest- ure out how to create jobs and en- economic expansion after the EM voters can have some real choices troit don’t want to elect ing election. Certainly courage companies to reside and ex- does his job. on Election Day. Whether you are Mike Duggan, that’s with the emergency pand in our city, we’re not going to We haven’t heard a lot so far, in favor of his election is unimpor- their choice, but we manager in Detroit mak- be able to sustain the kind of finan- and I am hoping that we’ll hear tant. To disqualify him on a tech- know they don’t want Tom Bar- ing all the decisions with some very cial recovery we need. plenty of good ideas in the days re- nicality is ridiculous. row. He’s had three tries. tough and volatile work ahead of Once Orr gets the city’s house in maining. 20130617-NEWS--0009-NAT-CCI-CD_-- 6/14/2013 11:47 AM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 9

tion of incoming funds. I know university administra- by those on high. That perception tinually fails to see that it is LETTERS CONTINUED Ⅲ More than one third of the 24 tors will be unhappy that these then informs the decisions and unique. WSU serves a different stu- terminations violated contracts or facts are being brought to light, processes that result. Consequent- dent and a different community. ■ From Page 8 broke laws, including termination but really, what’s the worst that ly, the wrong solution is created The challenges Crain’s men- record of publishing includes 116 of an employee under the Family can happen? over and over again. tions are partly because the ad- peer-reviewed publications, 153 pre- and Medical Leave Act, a non-Col- They fire me? Again? For example, hiring more advis- ministration does not see its sentations, 12 Ph.D.s graduated and lege of Engineering employee, Rachel Kast ers to handle the student population uniqueness or wants to ignore it. numerous post-docs mentored just three graduate students on pre- Assistant professor, research is a seemingly good idea. It solves Those who work on the ground since 2005. Smart Sensors and Integrated Microsystems paid contracts, five union contract Department of Electrical and Computer Engineering the student-to-adviser ratio prob- floor know it. We see it every day. During that same period, I have employees, and an employee on Wayne State University lem. However, it does not prevent We have small pockets of success been the principal investigator on WSU general funds. students from registering for too stories across campus that could more than $15 million in peer-re- Ⅲ Dean Farshad Fotouhi reno- WSU, think creatively many difficult courses in the same be scaled. Proposal after proposal viewed federal research (not ser- vated the entire business office semester, which creates a domino has been submitted to upper advice) grants and contracts, and an- suite while student laboratory Editor: effect of lowered GPA, possible loss ministration. However, they seem other $1.2 million in competitive equipment hasn’t been updated in In the article regarding the chal- of scholarship, dropout, etc. to be stuck in group-think that pre- non-federal grants and contracts. decades and the front steps of the lenges the incoming president of Advisers are not told to actively vents thinking outside of the box. This includes $5 million just be- building are literally crumbling. Wayne State University will face address this problem. Advisers are It would have been nice to get a fore Dean Farshad Fotouhi started Ⅲ The electrical and computer (“Degree of difficulty,” June 3), not trained to deal with inner-city staff person’s insight. Or a stu- as dean of engineering. engineering department passed a Crain’s unwittingly did what the students who have more responsi- dent’s perspective. A complete pic- Ⅲ I have been accused of allow- vote of “no confidence” against administration continues to do in bilities than being college students. ture. ing outside companies to use uni- Dean Fotouhi. its decision-making processes: WSU is preoccupied with keeping Sally Jenkins Detroit versity facilities and services This is just the tip of the iceberg. Present the problem as it is seen up with UM and MSU, and it con- without authorization, including a company I co-founded, Visca. For outside companies, the university set the cost per hour, approved the legal liability forms, reviewed operations, and automated the billing for those companies. I made sure that every company, including Visca, and every SSIM employee, including myself, followed university-prescribed pro- cedures, including WSU Board of Governors approval for Visca. The university also has misman- aged our associates and equipment while misleading the public about the current state of the clean room. The university only admits that the clean room’s new management has lost around $260,000. If they ac- counted for new equipment purchased, additional gas charges removed from the account, the salary Ready to grow of the current manager, and deficit transfers, the actual deficit is close to $700,000 in just two years. Because the new manager has your business? no experience running clean rooms, most users have left, leav- ing what was once a world- renowned facility a dirty, non- functioning lab. Let’s customize a plan to The new administration must swiftly remove people who put institutional politics over research that moves Wayne to prominence. The university, and the people make it happen. relying on it as part of a Detroit renaissance, cannot expect Wayne to attract world-class talent if the administration has a history of ex- propriating its faculty’s work and then publicly and improperly tar- CITIZENS BANK FIRSTMERIT BANK. nishing reputations. IS NOW Greg Auner Professor Wayne State University Lab changes criticized Editor: We’re here to help. I am one of the 24 originally fired employees, and one of the eight re- At FirstMerit Bank, we make it our business to know your business. maining employees, in the Smart With over one hundred years of experience creating tailored solutions Sensors and Integrated Microsys- tems laboratory at Wayne State to meet unique business needs, we can help you make the best choices University. In your article “A chemical reaction over lab” (June for your business. So, whenever you’re ready to chat, we’ll be here. 3), Allan Gilmour said changes to SSIM and the College of Engineer- ing were meant to enact fiscal responsibility; however, I think the administration’s actions are really a combination of negligence, incom- petence and deceit. Some examples: Ⅲ Outside audits have been per- TO LEARN MORE, CONTACT: formed to find the source of the David Lochner, President, Michigan, mysterious “deficits” in SSIM ac- 248-324-8555 david.lochner@ﬁrstmerit.com. counts. The true source is still in at or PERSONAL BUSINESS COMMERCIAL PRIVATEBANK dispute. If deficits exist, why is the business office not at fault? Member FDIC Ⅲ Terminations in March 2011 1403_FM13 FirstMerit.com/MeetUs were based on “projected deficits,” not actual deficits, with no projec- DBpageAD_DBpageAD.qxd 5/20/2013 3:50 PM Page 1

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June 17, 2013 CRAIN’S DETROIT BUSINESS Page 11

growing small businesses

EDITOR’S NOTEBOOK

Amy Haimerl is entrepreneurship Extraordinary entrepreneurs editor. She can be reached at (313) 446-0416 or at Crain’s annually recognizes entrepreneurs who are noteworthy for their innovation, ahaimerl @crain.com problem-solving ability or sheer relentlessness. Winners are divided into revenue cate- gories, with another for social entrepreneurs. This year’s winners and runners-up range from the construction and information technology sectors to a unique autism treatment fa- Amy Haimerl cility, and a specialty pharmacy to an effort to preserve and promote symphony music. Crain’s will honor the winners at a breakfast Aug. 6 at Somerset Inn, Troy. Keynote Don’t be like speakers are Ari Weinzweig, president of Zingerman’s, and Michael McFall, president of Biggby the ‘Mad Men’ Coffee. For more information, go to www.crainsdetroit.com/events. AMC’s “Mad Men” is wrapping up its sixth season, and, oh my, does it offer a few lessons to fellow second- stage companies. Namely: Don’t do PMA CONSULTANTS LLC THE HONOREES what we did. Detroit $30.1M-$50M revenue For those of you not following along, Winner: $30.1M to $50M Winner: PMA let me recap: “Mad Men” features a Consultants; fictional ad agency and the struggles its BY GARY ANGLEBRANDT led by Gui team faces as the 1960s morph into SPECTIAL TO CRAIN’S DETROIT BUSINESS Ponce de the 1970s. The firm recently moved Leon, from startup to second stage, having ui Ponce de Leon has an idea Profile (left) merged with another agency. Chaos, to for a tech innovation that Runner-up: Medcart put it mildly, ensued. would take a sophisticated Specialty Pharmacy, “You see a few things from the G Page 15 tool used by construction start with “Mad Men,” said Dave project managers and put it in the Haviland, CEO of Ann Arbor-based hands of anyone from schoolchild- Up to $5M revenue consulting firm Phimation. “It would be nice if they had a strategy, but it ren to surgeons, revolutionizing feels like they are just chasing how even trivial projects get done. whatever is hot.” If that idea should fall flat on its face, it wouldn’t diminish Ponce de Their struggles are similar to what Haviland sees with real-life firms, so Leon’s status as a successful entre- here are four tips for avoiding the preneur one bit. “Mad Men” trap: Ponce de Leon runs a $41 million Winner: The Big Salad; Have a vision: Know where you company of 187 employees he found- John and Beth Bornoty, want to be in three to five years. The ed more than 30 years ago. PMA Con- Page 12 “strategy” of “Mad Men” of chasing sultants LLC does construction pro- Runner-up: Superfly the next big thing is fading to black. ject management consulting and Kids, Page 15 This is when “strategy and supplements its offerings with spe- management start to matter in a way cialized software that shows how $5.1M-$20M that they didn’t before,” Haviland moving one critical piece of the pro- Winner: JEM said. “They need to be looking at ject impacts the development time- Tech Group; where they are headed as a group and line of the entire project. Jami Moore, getting people in the same direction.” His career in tech and construc- Page 13 Establish a culture: “In stage one, tion dates back to the late 1960s. Runner-up: the culture is ‘We have to make Ponce de Leon was born and raised Nuspire whatever work work.’ If you’re on a in Peru, where his father urged ARA HOWRANI Networks, Page 15 team of eight or 12, everyone is kind him to study engineering. He came Gui Ponce de Leon knew he was on to something when as an intern he realized he had the expertise that companies were after. of on the same page naturally. When to the U.S. on a Fulbright scholar- Social Entrepreneur you get to be 20 to 30, then people ship in 1966, studied at Vanderbilt would be a continuing need for that graphically shows the pieces of Winner: aren’t on the same page naturally.” University and the University of Michi- CutTime (Ahem, “Mad Men”.) these methods and ran with it. a project and allows people to move gan. It was at UM that an adviser That subsidiary was the prede- the pieces around and see the im- Productions; Manage talent: Finding and suggested he get into construction. cessor of his current company, pact on the project. Rick retaining talent is a significant Robinson, In the late 1960s, he took an in- which split off from the firm in It’s a more visual version of what challenge; be creative about it. “This ternship with Ann Arbor contrac- Page 14 stage is, in many ways, about who is 1980. the company has been doing all tor Townsend & Bottum, helping the Runner-up: doing the work and do we have the PMA worked on Boston’s “Big along and one that Ponce de Leon company use “critical path Play-Place for Autistic right team. Personal issues just Dig” road construction project and sees as useful for situations far Children, Page 15 increase exponentially. That’s why you method” software — early con- led the construction of the Visteon apart from construction. struction management software. Runner-up: Jackets for do the work on culture and strategy. If Corp. headquarters in Van Buren The software already is in use by Jobs, Page 15 you don’t do that, it just becomes a “They knew CPM and had this Township. Ongoing customers in- business customers, including Wal- more political environment.” See: CPM software, and it was baffling clude the Detroit Water and Sewerage bridge Aldinger Co., Jacobs Engineer- Joan vs. Peggy; Pete vs. everyone. to them,” Ponce de Leon said. “I re- Department and BP plc, and PMA is ing Group Inc., Merck & Co. Inc. and Marketing is critical: “They are alized, ‘Geez, if this large firm part of the team working on the The Port Authority of New York & New more opportunist and waiting for the needs this expertise, then I’m on Marathon Petroleum Co. LP refinery Jersey. phone to ring. That’s typical stage the right track.’ ” expansion in southwest Detroit. Ponce de Leon sees the software two, especially for older companies The day after he turned in his doc- Ponce de Leon works with his as a final crowning achievement that were very good and have an toral thesis in 1972, he was put in wife, Cecilia, who is the company’s for his career and believes it has established reputation. Five years charge of a newly formed subsidiary chief strategy officer; three of his six potential to change the way people ago, they were probably just getting at the firm to use new software children also work in the company. do projects from everyday tasks to phone calls. Now, because of the methods in project management More recently, Ponce de Leon complicated surgeries. complexity of the buyers and them consulting. started thinking about using the “It’s way beyond construction,” having more options, the phones just “Being an entrepreneur was the company’s software tools as a prod- he said. aren’t ringing the way they used to. So furthest thing from my mind at the uct offering. The company has de- PMA is working to have a you have to be out hustling business.” time,” he said. But he saw there veloped a product called NetPoint consumer-friendly version by 2017. 20130617-NEWS--0012-NAT-CCI-CD_-- 6/14/2013 11:30 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS June 17, 2013 Second Stage

John Bornoty and his wife, Beth, opened their first Big Salad in 2008, in Grosse Pointe Woods. There are five stores now, all in Southeast Michigan. Two more are planned for this year. COURTESY OF THE BIG SALAD In 1995, he left to start a Web fering similar fare as the deli: THE BIG SALAD LLC marketing business, Netgroup Inc., high-end salads — fast food for Grosse Pointe Woods helping companies develop their health-conscious people. first websites and Web strategies. Last year, Big Salad brought in Winner: Up to $5 million Along the way, he de- $1.7 million in revenue, cided to also launch a up from just under $1 BY GARY ANGLEBRANDT Web radio broadcast- million the year before. SPECIAL TO CRAIN’S DETROIT BUSINESS I fell in ing business called In- “ The company employs What kind of business does a teractive Media Broad- love with 60 people and has added guy who studied marketing and bi- casting Co. sandwiches to its offer- The Web radio ology and has a background in ings. business didn’t work retail. I never Web development open? Big Salad plans to out, and he closed it A salad restaurant, of course. would have open a franchise store in 1999. In 2005, he John Bornoty and his wife, in Rochester Hills and a sold his share of the Beth, who is company president guessed it. corporate store in the Web marketing busi- and also a high school math Ann Arbor area this ness, took a year off teacher, opened The Big Salad LLC’s Restaurant year. Projected revenue and then started tak- first store, in Grosse Pointe for 2013 is $3.2 million. ing courses at Sacred retail is what After dabbling in so Woods, in 2008. Now there are five, Heart Major Seminary many different fields, all in Southeast Michigan, with in Detroit. One of his I was meant Bornoty, at the age of 43, two more on the way this year. life’s goals is to be- seems to have found one His career path originally was come a Catholic dea- to do. pointed toward industrial health con, and he continues ” that will hold his atten- and safety. Bornoty studied sci- his studies now. John Bornoty, tion for good. ence but ran against a hard wall Bornoty got the The Big Salad “I fell in love with re- called pre-calculus and switched to idea for Big Salad tail. I never would have marketing and public relations. while on a trip to guessed it,” Bornoty Entrepreneurship has always New York City for a meeting said. “I love the employees. I love been part of the mix, too. He about buying a boutique market- serving food. It’s like one day you formed his first business while in ing agency. Instead, after walking wake and realize, maybe I should high school, doing DJ work for across the street to a deli during a have been doing this a long time school dances and weddings. break, he came away wanting to ago. Restaurant retail is what I “It was a great way to pick up start a franchise in Michigan of- was meant to do.” girls. Everyone likes the DJ, right?” he said. This business, called T.N.T. Enter- tainment and started out of his parents’ basement in Clinton Town- ship, morphed into a concert and band promotion company. One high-profile show at Freedom Hill Amphitheatre in 1990 featured Run-D.M.C., Rob Base and other 1980s hip-hop acts. But it didn’t go so well. “I lost my shirt completely at that event,” Bornoty said. He sold the business and soon got a job with a company looking for someone with a background in promotions and computer technology. He had always been into computers and had a side job in high school repairing Commodore 64s. The company, A&M Companies, did dealership training, media events and media car handling for automotive manufacturers’ new car launches. Bornoty became vice president of sales and marketing, helped grow the business and got to drive cars like the new Dodge Viper before everyone else. 20130617-NEWS--0013-NAT-CCI-CD_-- 6/14/2013 10:06 AM Page 1

June 17, 2013 Page 13 Second Stage

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MICHELLE ANDONIAN Rick Robinson, a former Detroit Symphony Orchestra bassist, formed an ensemble of DSO musicians to take music to nightlife venues in an effort to broaden the audience of classical music. The effort has morphed into CutTime Productions.

*Chambers USA: America’s Leading Business Lawyers ® BOE64/FXTo#FTU-BXZFST UT IME RODUCTIONS organizes classes and works with C T P LLC various nonprofits. For example, #0450/t#3644&-4t$)*$"(0t%&530*5t+"$,40/7*--&t-04"/(&-&4 Detroit We’re really in the he’ll be playing New Center Park ."%*40/t.*".*t.*-8"6,&&t/&8:03,t03-"/%0t4"$3".&/50 Winner: Social Entrepreneur “ on Thursdays, June through Au- 4"/%*&(0t4"/%*&(0%&-."3t4"/'3"/$*4$0t4)"/()"*t4*-*$0/7"--&: inspiration gust, for Midtown Detroit Inc. 5"--")"44&&t5".1"t50,:0t8"4)*/(50/ %$ “The industry really needs new BY AMY HAIMERL ª'PMFZ-BSEOFS--1t"UUPSOFZ"EWFSUJTFNFOUt1SJPSSFTVMUTEPOPUHVBSBOUFFBTJNJMBSPVUDPNF business. ideas and new ways to reach new /$MBSL4USFFU 4VJUF $IJDBHP *-tt CRAIN’S DETROIT BUSINESS ” audiences,” Robinson said. “I can Rick Robinson is bringing clas- Rick Robinson, CutTime Productions work as a guest artist or consul- sical music to the masses — which tant or publishing my arrange- houses. At the gatherings, they may be one of the most challenging ments and compositions to help SBA PREFERRED LENDER | TERM LOANS | REAL ESTATE LOANS | LINES OF CREDIT would perform and explore the na- jobs in all of music. the industry at the same time as ture of classical music and what The former Detroit Symphony Or- make a living.” makes it classical. chestra bassist has loved classical Business has been steady, but “We’re really in the inspiration music all his life, and it frustrated the life of a musician is never a business,” Robinson said. “It’s him that the genre struggled to windfall. In 2012, CutTime posted how we set the context for this mu- find new fans. He couldn’t under- revenue of $20,000, up from $15,000 sical style that inspires people as stand why the sounds that moved in 2011. much as the music. People are him so deeply should be cooped up Eventually Robinson would like very surprised to see a black man in grand concert halls and to grow enough to hire a few em- advocating and explaining classi- churches, inaccessible to new au- ployees — “I need an agent and PR cal music.” diences. person,” he said jokingly, “and I’m In 2011, he faced a serious re- “I grew up in a musical family certainly a better artist than ac- thinking of his life. His father going back five generations,” countant” — because he spends passed away, and it gave Robinson Robinson said. “My mother played two-thirds of his time traveling. In the courage to jump into entrepre- piano when she got home from the future, he’d like to be stable neurship full time. He now writes $153,000,000 in work to relax; my older brother and able to work consistently in and arranges tours and records, and sister played and had so much Detroit and Chicago. fun that I couldn’t wait to grow up Commercial Loans and study music in school. I just started hearing the wealth of beautiful music and how it took me on Work smarter for your business. for 2012 alone. adventures. It comforts us with a sense of inevitability, and it’s that kind of contrast that I want to Your hometown share with as many people as possible.” So Robinson formed CutTime advantage. Players in 1995, an eight-piece ensemble of DSO musicians who could take symphonic music out into the nightlife. He started by transcribing and adapting classical works for the group and then Being local means we’re able to leverage approvals and decisions began writing his own original works that blend classical with ur- right from our home ofﬁce. It means more answers backed by ban pop. It was just a side gig, the knowledge we've gained from being rooted here since 1917. keeping him busy when he wasn’t This means a lot for the business customers we help daily. Trust at the DSO. us, that’s a big advantage for small business. But when the symphony went Size, comfort, value and versatility that drives your potential. on strike in 2010, Robinson was www.thefsb.com/businessloans | 866-372-1275 The 2013 Sprinter Van — exclusively at Mercedes-Benz of Novi. Visit us today to able to turn his attention to the see one of the area’s largest Sprinter inventories. company, CutTime Productions LLC, more consistently. He launched a Mercedes-Benz of Novi Detroit chapter of the “Classical 39500 Grand River Ave. Revolution” movement and began Novi, MI 48375 a monthly revue of artists at De- 248-426-9600 (Sales & Service Available Now) troit area restaurants and coffee- www.mercedesbenzofnovi.com 20130617-NEWS--0015-NAT-CCI-CD_-- 6/14/2013 10:27 AM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 15 Second Stage

Salute to Entrepreneurs runners-up NOMINATIONS SOUGHT FOR STATE’S HEALTHY WORKPLACES Michigan companies have an Companies enter by filling out a MEDCART SPECIALTY PHARMACY was diagnosed with autism when professional clothes. opportunity to be recognized for survey at he was 2. More than 14,000 men and their healthy workplace practices in crainsdetroit.com/nominate by $30.1 million to $50 million The organization’s 18,000- women have received more than the second annual awards program Aug. 16. There is no fee. Livonia-based Medcart Specialty square-foot facility has computers, 150,000 pieces of clothing from the for wellness in the workplace. Southeast Michigan winners will be Pharmacy specializes in drugs and a playscape, movie theater and a Detroit-based group, which also Priority Health, with Crain’s Detroit announced Oct. 16 at a breakfast treatments for complex medical “cosmic” laser light chalk room. has received national media atten- Business and MiBiz as media preceding the fourth annual Health sponsors, seeks nominations for Care Leadership Summit. A similar conditions such as rheumatoid tion, including from Donald Trump, NBC, ABC, Oprah Winfrey Michigan’s Healthiest Employers event will be held in West Michigan arthritis, HIV, Hepatitis B and C, awards. by MiBiz to recognize winning West and cancer. JACKETS FOR JOBS INC. and Martha Stewart. The nonprofit has received The awards recognize best Michigan companies in January. The firm, which works with pa- Social entrepreneur practices used by employers to Winners will be profiled in a special tients and doctors, has developed grants of more than $1 million Founder Alison Vaughn left her Detroit Workforce Develop- create healthy workplaces across supplement to run in Crain’s pharmacy software to improve the from the job as a United Airlines Inc. flight at- ment Department and $1 million Michigan as determined by Detroit Business and MiBiz on Oct. time in which patients receive Indianapolis-based Healthiest 14. Questions about the program tendant after Sept. 11, 2001, to start from retailer TJ Maxx. their often expensive and rare Employers LLC, which has used can be directed to Crain’s Deputy the nonprofit Jackets for Jobs Inc., Revenue increased to nearly medications while lowering costs. its healthiest employers Managing Editor Daniel Duggan at which provides low-income indi- $570,000 in 2012 from the previous Medcart also works with drug methodology in 40 cities across 25 [email protected] or (313) viduals with employment eti- year’s $365,000. manufactures to handle distribu- states. 446-0414. quette, career skills training and — Bill Shea tion, data collection, sales and in- ventory control. It opened a 16,000- square-foot facility in 2012. Revenue grew to $35 million last year from $20 million in 2011. The firm, which employs 55, was launched in 2006 by Ed Saleh and Eddie Abieda.

NUSPIRE NETWORKS Wendy and mostly sunny. $5.1 million to $20 million Commerce Township-based Nus- Wendy Zimmer Cox could have cried. It would have been unusual to do so at such a happy moment, smack in the pire Networks has been adding middle of her job interview. But there she was, listening to a top Greenleaf Trust executive articulating the core clients and piling up honors as a respected computer network secu- values of his company. There were no catchphrases, and no business book themes du jour. Just a clear premise rity company that does work spoken with conviction: “Do what’s right, honest and honorable, and always put the clients’ interests fi rst.” around the world. Stamford, Conn.-based IT research agency Gartner Inc. and It was exhilarating and it was a fi rst. Over the previous two decades, Wendy had been VP, director of private Mountain View, Calif.-based mar- sales for a major bank, where she’d overseen a team of wealth management advisors; she’d practiced law in ket researchers Frost & Sullivan rank Nuspire among the top man- probate and trust litigation and administration; she was securities-licensed, holding the Series 7, 66 and 24; aged security service providers in and she’d earned BA and JD law degrees from the University of Michigan. But now, for the fi rst time in her the world. professional life, she was hearing what she had long wanted to hear. Not as an aside, but purposefully from Revenue grew from $7 million in 2011 to $8 million last year. William D. Johnston, Chairman of Greenleaf Trust. Saylor Frase, Nuspire’s president and CEO, was a member of That same month in 2012, Wendy Zimmer Cox joined Greenleaf Trust’s client centric the 2008 class of Crain’s 40 under 40. He launched the firm in 1999. team as a Trust Relationship Offi cer. From our Birmingham offi ce, Wendy advises clients on trust- and estate-related matters, and oversees day-to-day account and fi duciary SUPERFLY KIDS requirements. As an integral part of a goals-based wealth management fi rm with Up to $5 million billions in assets, unwavering focus on integrity and trust and nearly Livonia-based Superfly Kids is 100% client satisfaction rates, she’s now in a position to signifi cantly improve parent company of several of Web- your well being. To learn more about how we based businesses, but the back- bone is PowerCapes.com — custom- can help you achieve fi nancial security from made superhero capes for generation to generation, call us. Your own children. Holly Bartman founded PowerCapes in 2007, and in 2009 tears of joy may fl ow. partnered with Justin Draplin to launch Superfly Kids. The Superfly Kids portfolio has come to include Tutu Fabulous (tutus for girls) and Hero Huggers (kids belts in funky colors and designs). The firm also makes capes for adults. There is a market for kid caps, belts and tutus: Revenue grew last year to $2.3 million from 2011’s $750,000. It was less than $500,000 in 2010. The capes are made in Livonia by a team of full- and part-time seamstresses. greenleaftrust.com

PLAY-PLACE FOR AUTISTIC CHILDREN Social entrepreneur The Sterling Heights-based 501(c)3 nonprofit was launched in 2011 with the intent of helping autistic children through an affordable program of play, outreach, group therapies and other services. 34977 woodward avenue, suite 200 birmingham, mi 48009 248.530.6202 877.530.0555 Founder and President Shell Jones has a 10-year-old son who 20130617-NEWS--0016-NAT-CCI-CD_-- 6/14/2013 10:07 AM Page 1

Page 16 CRAIN’S DETROIT BUSINESS June 17, 2013 Kellogg Foundation opens bite-size office in downtown Detroit

BY SHERRI WELCH base for three Kellogg program of- very little opportunity to come to- CRAIN’S DETROIT BUSINESS ficers and three other program gether to talk, she said. A SAMPLE OF KELLOGG GRANTS IN DETROIT staff members. They include Shar- “We see it as a critical piece of The Battle Creek-based W.K. Kel- nita Johnson, a program officer the work we do to bring grantees $25 million to help establish the community kitchen at Eastern logg Foundation — the largest grant who co-leads the Detroit grant- together to learn together, to devel- $100 million New Economy Market for local food processors. maker in the state and fifth-largest making program, and Linda Jo op partnerships, to think about Initiative, a foundation-led $3 million to the M1 Rail in the U.S. — has opened a satellite Doctor, a program director who their work differently and expand economic development effort streetcar project, a 3.3-mile loop under development for Detroit’s office in downtown Detroit with makes grants in Detroit and na- their resources.” established in 2006-2007. Woodward Avenue. five to six program staff members. tionally on food, health and well- It’s also important to know the $10 million to the Community $3 million in January with the The $8 billion foundation makes being. Kellogg plans to add at least people and groups involved with Foundation for Southeast Michigan in 2005 in support of the Detroit Troy-based Kresge Foundation to grants totaling about $360 million one new program officer to also fo- various revitalization efforts un- each year. Of Neighborhood Fund to help fund implement the Detroit Works cus on its Detroit grant making, derway and to Project, Detroit’s strategic those, $80 mil- efforts to create stronger said Joanne Krell, vice president be accessible to neighborhoods extending north framework for redevelopment. lion are in of communications. grantees and from the Detroit RiverWalk. $2.1 million to the Global Detroit Michigan, with For about the past year, Kellogg others, Johnson $7.5 million over five years in Neighborhood Development $25 million in had operated from a small space at said. 2009 to Michigan Future Inc. to Collaborative, now known as grants in De- the Community Foundation for South- “Having a develop new, high-performing high Prosper Us, an effort launched last troit alone. east Michigan’s Detroit offices with place we can schools in Detroit across year to direct support to “This is a re- access to a desk, phone and confer- meet, convene governance models. “underground” microenterprises in lationship busi- ence room, Johnson said. and be a pres- $5 million to the Detroit three of Detroit’s immigrant and impoverished neighborhoods. ness,” President The only other Detroit presence ence in the com- Riverfront Conservancy to help fund and CEO Ster- the foundation had dates back to munity is very the Detroit RiverWalk. $2 million to City Connect Speirn Johnson Detroit to support grassroots ling Speirn said 1987 when it had an office to house important to us $4.5 million over four years in initiatives for community centers in an email to Crain’s. its youth initiative work in the 2012 to Excellent Schools Detroit, ... it connects us to the work we’re and recreation centers. Other “We couldn’t imagine being (an) city. That evolved into Youthville doing. We’re not in some far-off a public-private collaborative, to spur the creation of 15 new high- private organizations are also effective partner in places where Detroit, and when the work was place making decisions ... we’re in performing schools in Detroit. funding the effort, collectively we were funding without having a completed, Kellogg did not main- the community, experiencing what bringing $14 million to Detroit $4.5 million to Eastern Market more permanent presence for local tain the office, said Krell. the community is experiencing.” Mayor Dave Bing’s Active and Corp. to fund vendor shed staff to work from, to host meet- The new office will give Kellogg Safe Campaign for the next five Kellogg focuses its grant-making renovations, parking improvements ings, etc.,” enabling them to get years. larger space to accommodate a on healthy and educated kids and and other upgrades to the better acquainted with the people growing staff, Johnson said. It will financially secure families, with an country’s oldest farmers’ market, $1.5 million in 2012 to Wayne and the place. have cubicles, a conference room emphasis on racial equity and com- followed by three grants totaling Children’s Healthcare Access Kellogg is leasing 3,500 square that can seat up to 10 people and munity engagement. It’s been a sig- $2.1 million in 2011 to support Program, an initiative to ensure feet of space on the 16th floor of the meeting space that can seat 20 or the purchase of locally grown food every child has a medical home. nificant contributor to projects that Grand Park Centre Building at 28 more. include upgrades to Detroit’s East- by schools and hospitals, to help $1.3 million to City Connect Detroit schools buy more healthy Detroit in 2013 to help fund a W. Adams Ave. in Grand Circus “We’re looking at it as a place ern Market, the Detroit RiverWalk, Park. where we convene our grantees ... food for student foods, and to summer employment program for the Detroit Neighborhood Fund support the development of a Detroit youth. Other tenants in the building in- to network, for technical assis- work to strengthen the city’s near clude Giffels-Webster Engineers Inc., tance workshops and for other east side neighborhoods, Excellent Wayne County Veterans Affairs and types of gatherings,” Johnson said. N.M., where it also has opened re- Troy-based Kresge Foundation. Schools Detroit efforts to create high- gional offices. Kresge opened its office just un- the Michigan Nonprofit Association. Grantees are so committed to do- performing high schools and the The new space will serve as a ing their work that they often have In Michigan, Kellogg also makes der a year ago in Midtown. New Economy Initiative. grants in its home city of Battle The Detroit office presents the Kellogg significantly increased Creek and in Grand Rapids. opportunity to show others the ac- its grants in Detroit in 2009 when it Will Keith Kellogg, who estab- tivity and investment happening put in place a new strategic frame- lished the foundation, believed in the city, Laura Trudeau, a se- work for its grant making. strongly in Michigan and wanted nior program director at Kresge, Soon after, it launched a place- to improve the lives of vulnerable said at the time. based strategy that called for children, Speirn said. “They leave with a different idea working for longer periods of time Several other foundations have of what’s happening in Detroit to- in areas where it had well-estab- offices downtown or in the city, in- day, and they take that story home lished relationships with nonprof- cluding the Community Founda- with them.” its. Detroit was one of three cities tion for Southeast Michigan, Hud- Sherri Welch: (313) 446-1694, it named as focus areas, along with son-Webber Foundation, Skillman [email protected]. Twitter: SUMMER 8 PACK Jackson, Miss., and Albuquerque, Foundation and, most recently, the @sherriwelch 8 great games starting at just $26 per game Put your package together today! Kellogg Foundation looks for new president The W.K. Kellogg Foundation is with their passion and creativity vested about three-fourths of the continuing its search for a succes- in bringing life and diligent execu- $100 million. Over the past two Includes: sor to President and CEO Sterling tion to our mission, vision and val- years, its U.S. mission-driven in- Speirn, who plans to leave the ues.” vestment portfolio returned 4.2 · Choice of 8 games (select dates – weekend games available) foundation at the end of this year. Speirn, who was born and raised percent, which met its goal. · A commemorative 1968 World Championship coin The foundation plans to name a in metro Detroit, was instrumen- In terms of the social return, the successor by year’s end, said tal in more strongly aligning the foundation told Crain’s in October · Complimentary Tiger Club/Tiger Den Lounge access pass Joanne Krell, vice president of foundation’s mission in 2007 with that those investments helped communications. support to change conditions for 28,977 children, providing them Its board is focused on finding a vulnerable children. and their families affordable candidate who exhibits a commit- During Speirn’s eight-year homes, living-wage jobs, daily ment to the foundation’s mission tenure, the foundation established healthy meals in school and year- of improving opportunities and place-based grant-making in long preschool. outcomes for vulnerable children Michigan and also in New Mexico, It’s seen those results through and a dedication to ensuring im- Mississippi and New Orleans, investments in organizations such plementation of its strategic where it had made a high number as Oakland, Calif.-based Revolution framework, she said. of grants and worked with multi- Foods, a for-profit that provides It also seeks someone who has ple nonprofits on social issues. healthy school lunches and snacks an understanding of and commit- And it launched impact invest- and programs on healthy eating. ment to racial equity and to breaking in 2008, carving out $100 mil- Speirn said personal reasons ing the cycle of poverty, an innova- lion of its portfolio to fund what it contributed to his decision to tive mind and a readiness to calls “mission-driven investing” leave. His wife, Diana Aviv, is embrace complexity, set ambitious — or mission-related investments president and CEO of the national goals and take intelligent risks, of part of endowment. The invest- nonprofit Independent Sector in Krell said. ments are intended to produce a Washington, D.C. “This was a good time in my life market rate of financial return He said he does not know where to make a change,” Speirn, 65, said and a social return that supports he will land next, but work on ear- in a recent email to Crain’s. “Our vulnerable children, aligning with ly childhood issues and breaking partnerships in communities are its mission, and are made in addi- intergenerational cycles of pover- getting deeper and stronger. And tion to the foundation’s grants. ty are high on his priority list. our staff continually inspire me As of last fall, Kellogg had in- — Sherri Welch 20130617-NEWS--0017-NAT-CCI-CD_-- 6/14/2013 11:36 AM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 17 Altarum lays off 15, expects $5.5M chop from sequestration

BY JAY GREENE Institutes of Health. ganization are working with Al- CRAIN’S DETROIT BUSINESS “Our commercial business has tarum. bounced back when there was a lit- (Sequestration) is “We are piloting new technology Altarum Institute, an Ann Arbor- tle slowing in the 2008-2009 time pe- “ that promises to save health care based nonprofit that provides riod when the economy was slow- devastating for nonprofits. dollars,” Smith said. Studies have health care research and consulting,” Smith said. “We are seeing ” shown 25 percent of all imaging ing, has laid off 15 employees and more growth in the commercial Donna Murray-Brown, Michigan Nonprofit Association studies are not necessary. reassigned three others to make part of the business.” Altarum also is in the last year up for a $5.5 million drop in expect- According to its Form 990s, Al- of a $19 million grant to help about ed revenue this year because of tarum posted financial losses of 4,000 physicians evaluate, pur- federal sequestration cuts. $4.3 million in 2011, $8 million in When those taxable companies year grant with the Center for chase and install electronic med- Over the past few weeks, two se- 2010, $7 million in 2009 and $5.3 are included with the nonprofit op- Medicare & Medicaid Innovation to ical records. The grant created the nior vice presi- million in 2008. erations, Smith said, Altarum study ways to reduce unnecessary Michigan Center for Effective IT Adop- dents and 13 oth- But Smith said the primary rev- broke even in 2011, posted a $1 mil- medical imaging by 10 percent and tion, which is expected to continue er back office enue figures in Altarum’s Form lion profit in 2012 and expects to be improve quality in Southeast to operate after the grant ends. and support em- 990 only include operations from in the black this year. Michigan. Bingham Farms-based Jay Greene: (313) 446-0325, ployees have its parent company and doesn’t in- Earlier this year, Altarum an- United Physicians and the Detroit [email protected]. Twitter: been laid off, clude its for-profit subsidiaries. nounced an $8.4 million, three- Medical Center Physician Hospital Or- @jaybgreene said CEO Lin- coln Smith. In Michigan, Altarum laid off four employees. Smith The others were in offices in Washington, D.C., and Alexandria, Va. Altarum employs about 440 full-time workers. “This squares us up with projected revenue for the year,” Smith said. “Our revenue is largely a “WANT TO function of the federal marketplace.” Donna Murray-Brown, CEO of the Michigan Nonprofit Association in Lansing, said many nonprofits are LIGHTEN YOUR struggling financially because of sequestration. “There is a threat that they may have to do layoffs if (sequestration) is not resolved,” Murray- ENERGY BILL?” Brown said. “This is devastating for nonprofits. They reduced staff during the recession, and now this.” DTE ENERGY WILL SHOW YOU HOW. Murray-Brown said some nonprofits are considering collabora- If you want to lower your energy costs, get more efficient. Like saving up to 90% tions or mergers to reduce costs through economies of scale. on lighting costs by replacing traditional lighting with energy efficient LEDs or CFLs. Of Altarum’s $85.5 million bud- Our lighting advisor tool will help you find energy efficient alternatives to replace get for 2013, 80 percent comes from contracts with federal agencies, your existing lighting. Just go to dteenergy.com/lightingadvisor. which have been reduced by 2 percent due to sequestration cuts, Smith said. The other 20 percent comes from state health departments and commercial contracts. Altarum had projected 2013 revenue of $91 million. Over the past two years, Al- tarum’s budget growth has slowed to about 2 percent compared with double-digit growth from 2005 to 2011, Smith said. Consolidated revenue, which includes four taxable C corporation subsidiaries, grew in 2012 to $86.2 million, up from $83.5 million in 2011, Smith said. “We have seen good growth (33 percent) in our commercial health care business since 2005 when we focused on health care,” Smith said. Despite the layoffs, Altarum has 16 open positions, including six in Michigan, for its nonprofit and commercial businesses in Michi- gan and Washington, D.C. In 2011, Altarum’s for-profit subsidiaries reported $20 million in revenue, according to Schedule R of IRS Form 990. Those companies are Altarum Asset Management Inc. and Health Systems Research Inc., two Ann Arbor-based companies; KAI Research Inc., Rockville, Md.; and Palladian Partners Inc., Silver FOR MORE ENERGY SAVING TIPS, Spring, Md. VISIT: dteenergy.com/savenow Palladian is a communications and conference planning company. KAI provides support services to drug, biotech and academic institutions along with the National DBpageAD_DBpageAD.qxd 5/16/2013 9:51 AM Page 1

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June 17, 2013 CRAIN’S DETROIT BUSINESS Page 19

CRAIN'S LIST: LARGEST AUTO DEALERS Ranked by 2012 revenue

Company Revenue Revenue Number of new Number of used Address ($000,000) ($000,000) Percent Number of vehicles sold/leased vehicles sold Rank Phone; website Top executive(s) 2012 2011 change dealerships 2012/2011 2012/2011 Penske Automotive Group Inc. Roger Penske $13,163.5 $11,127.5 B 18.3% 257 180,764 145,580 1. 2555 Telegraph Road, Bloomfield Hills 48302-0954 CEO 149,068 121,501 (248) 648-2500; www.penskeautomotive.com

The Suburban Collection David Fischer 1,370.8 1,221.3 12.2 31 24,615 15,960 2. 1795 Maplelawn Drive, Troy 48084 chairman and CEO 22,900 14,263 (877) 471-7100; www.suburbancollection.com

Victory Automotive Group Inc. Jeffrey Cappo 703.5 C NA NA 25 NA NA 3. 46352 Michigan Ave., Canton Township 48188 president NA NA (734) 495-3500; www.victoryautomotivegroup.com

LaFontaine Automotive Group Michael LaFontaine 453.3 411.4 10.2 9 8,669 4,424 4. 2027 S. Telegraph Road, Dearborn 48124 owner and president 7,946 3,665 (313) 561-6600; www.thefamilydeal.com Maureen LaFontaine owner and vice president Prestige Automotive LLC Gregory Jackson 436.0 409.7 6.4 3 16,662 1,995 5. 20200 E. Nine Mile Road, St. Clair Shores 48080 chairman, president and CEO 15,868 1,863 (586) 773-2369; www.prestigeautomotive.com

Elder Automotive Group Irma Elder 365.6 309.4 18.2 9 3,559 3,487 6. 777 John R Road, Troy 48083 CEO 3,561 3,710 (248) 585-4000; www.elderautogroup.com

Southfield Dodge Chrysler Jeep Ram Dan Frost 306.3 197.5 55.1 3 6,863 2,104 7. 28100 Telegraph Road, Southfield 48034 president 6,520 1,850 (248) 354-2950; southfieldchrysler.com Gary Wood ■ Largest percentage increase CFO Stewart Management Group Inc. Gordon Stewart 296.4 265.7 11.5 5 5,804 3,691 8. 20844 Harper Ave., Suite 100, Harper Woods 48225 president 5,102 3,787 (313) 432-6200; www.gordonchevrolet.com

Snethkamp Automotive Family Mark Snethkamp 185.0 200.0 -7.5 4 5,475 NA 9. 16400 Woodward Ave., Highland Park 48203 president 6,150 NA (313) 868-3300; www.snethkampauto.com

Jim Riehl's Friendly Automotive Group Inc. James Riehl Jr. 173.7 141.0 23.2 NA NA NA 10. 32899 Van Dyke Ave., Warren 48093 president and CEO NA NA (586) 979-8700; www.jimriehl.com

Parkway Chrysler Dodge Jeep Ram Charles Riley 153.9 110.6 39.2 1 3,867 570 11. 21560 Hall Road, Clinton Township 48038 president 2,657 571 (586) 465-7210; www.parkwaychryslerjeep.net

Tom Holzer Ford Inc. Constance Holzer 141.6 128.6 10.1 1 3,658 1,007 12. 39300 W. 10 Mile Road, Farmington Hills 48335 CEO, president and dealer 3,369 986 (248) 474-1234; www.holzerford.com principal

Royal Oak Ford/Briarwood Ford Eddie Hall Jr. 138.5 136.9 1.2 2 3,629 1,366 13. 27550 Woodward Ave., Royal Oak 48067 president 3,574 1,313 (248) 548-4100; www.royaloakford.com

Buff Whelan Chevrolet Kerry Whelan-Thieleke 136.7 138.2 -1.1 1 3,528 1,022 14. 40445 Van Dyke Ave., Sterling Heights 48313 president 3,721 1,102 (586) 939-7300; www.buffwhelan.com

Pat Milliken Ford Inc. Bruce Godfrey 136.0 129.0 5.4 1 3,597 664 9600 Telegraph Road, Redford 48239-1492 president 3,521 673 15. (313) 255-3100; www.patmillikenford.com Brian Godfrey vice president and general manager Jeffrey Tamaroff Automotive Family Marvin Tamaroff 121.0 123.0 -1.6 2 2,974 2,003 16. 28585 Telegraph Road, Southfield 48034-1928 chairman emeritus 3,484 1,899 (248) 353-1300; www.tamaroff.com Jeffrey Tamaroff chairman and CEO Bill Perkins Automotive Group Bill Perkins 118.1 118.3 -0.1 2 2,150 3,018 17. 21800 Gratiot Ave., Eastpointe 48021 president 2,079 2,834 (586) 775-8300; www.merollischevy.com

Avis Ford Inc. Walter Douglas Sr. 107.6 110.7 -2.8 1 2,687 1,832 18. 29200 Telegraph Road, Southfield 48034 chairman and CEO 2,912 1,158 (248) 355-7500; www.avisford.com

Gorno Automotive Group Ed Jolliffe 105.5 98.5 7.1 NA NA NA 19. 22025 Allen Road, Woodhaven 48183 president and general manager NA NA (734) 676-2200; www.gornoford.com

Village Ford Inc. James Seavitt 102.6 112.0 -8.4 1 2,408 670 20. 23535 Michigan Ave., Dearborn 48124 president and CEO 2,800 850 (313) 565-3900; www.villageford.com

Milosch's Palace Chrysler-Jeep-Dodge Inc. Donald Milosch 95.4 89.1 7.1 NA NA NA 21. 3800 S. Lapeer Road, Lake Orion 48359 president 1,576 1,289 (248) 393-2222; www.palacecjd.com

Ray Laethem Inc. Jeff Laethem 87.0 90.0 -3.3 NA NA NA 22. 1677 Mack Ave., Grosse Pointe 48224 president NA NA (888) 692-6317; www.raylaethemchryslerdodgejeep.com

Roseville Chrysler Jeep Inc. Michael Riehl 66.0 63.6 3.7 1 1,451 530 23. 25800 Gratiot Ave., Roseville 48066 president 1,334 674 (586) 859-2500; www.mikeriehls.com

Rodgers Chevrolet Inc. Pamela Rodgers 51.0 49.8 2.3 1 1,343 521 24. 23755 Allen Road, Woodhaven 48183 president 1,125 510 (734) 676-9600; www.rodgerschevrolet.com

Glassman Automotive Group Inc. George Glassman 47.6 48.3 -1.5 1 1,341 529 25. 28000 Telegraph Road, Southfield 48034 president 1,372 596 (248) 354-3300; www.glassmanautogroup.com

This list of auto dealers is an approximate compilation of the largest such businesses in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. It is not a complete listing but the most comprehensive available. Holman Automotive Group, No. 19 on last year's list, which Crain's believes would make the list, declined to provide figures, and a reliable estimate could not be made. Unless otherwise noted, information was provided by the companies. Actual revenue figures may vary. NA = not available. B Restated from $11.6 billion due to discontinued operations. C Automotive News. LIST RESEARCHED BY BRIANNA REILLY 20130617-NEWS--0020-NAT-CCI-CD_-- 6/14/2013 12:16 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS June 17, 2013 Load One to build HQ at aerotropolis; 1st real estate deal at the site this year

BY KIRK PINHO million in 2011. tive committee oversee the dis- CRAIN’S DETROIT BUSINESS Louis Glazier is partner for D.T. trict, and Bryce Kelley is interim Real Estate, and Elliott is the man- administrative officer. The board In the first real estate deal this aging partner. Glazier is also the consists of representatives from year at the government-led Detroit former executive vice president of Wayne and Washtenaw counties; Region Aerotropolis site near Detroit business and finance for Thorn Ap- the cities of Taylor, Romulus, Metropolitan Airport, a growing local ple Valley Inc., the Southfield-based Belleville and Ypsilanti; and logistics company plans to build a company that filed for bankruptcy Huron, Van Buren and Ypsilanti new $8 million headquarters and in 1999 and whose brands were townships. The executive commit- expanded logistics center. bought by Tyson Foods Inc. In addi- tee features two representatives Load One Transportation & Logis- tion, Glazier is now principal at from Wayne County and the tics LLC plans the 150,000-square- Franklin Advisors LLC, a Farmington Wayne County Airport Authority, foot building in Huron Township, Hills financial consulting firm spe- and one representative each from double the size of its current head- cializing in corporate restructur- Washtenaw County, Business Lead- quarters in Taylor. ing, turnaround management and ers for Michigan and DTE Energy, Kel- The company plans to move by business planning. ley said. summer 2015; the property is 40 The Load One building will have A reinvigorated push for the acres under contract for Wayne office, warehouse and mainte- aerotropolis area began a year ago, County to sell to D.T. Real Estate In- nance facilities. and 2012 corporate investments investments LLC, Load One’s land de- Huron Township Supervisor cluded: velopment arm. The county is sell- David Glaab said he had prelimi- A 320,000-square-foot building ing the land for $851,170, according nary discussions with Load One. for Inergy Automotive Systems LLC in to county commission meeting He added that the paving and Huron Township on 44 acres. minutes. rerouting of Wahrman Road — A 250,000-square-foot building John Elliott, president and CEO currently a gravel thoroughfare for Lee Steel Corp. in Romulus. of Load One, said he expects con- from Sibley to Pennsylvania roads Brose North America Inc. mov- struction to begin next spring on — to the east of the road’s current ing into a vacant building in the site at the southeast corner of location will provide added incen- Huron Township. Pennsylvania Road and I-275. He tive for business to come to the GE Aviation Group’s $17 million will move about 170 employees area by giving them access to larg- renovation of a Van Buren Town- there. Elliott said the move is in re- er parcels close to I-275. The Wayne ship building. sponse to a need for more square County Road Commission project is Last year, five Southeast Michi- footage, parking space and ware- expected to cost $4 million. gan firms were chosen to help mar- housing facilities as his company The aerotropolis, on land in ket the area: Carlisle/Wortman Asso- has expanded. Huron Township, Romulus, Tay- ciates and Fontaine Urban Design “We’ve had, almost every year lor, Van Buren Township, Ypsilan- LLC, both of Ann Arbor; Detroit- since inception (in 2003), about a 20 ti and Ypsilanti Township, was based SmithGroupJJR; Northville- percent (revenue) growth rate,” he formed and expanded as a county- based McKenna Associates; and said. Crain’s Private 200 List pub- led push for economic develop- Royal Oak-based LSL Planning Inc. lished June 3 shows Load One had ment and logistics projects. Kirk Pinho: (313) 446-0412, $68.8 million in revenue in 2012, a A nine-member board of direc- [email protected]. Twitter: Need a 22.2 percent increase from $56.3 tors and a seven-member execu- @kirkpinhoCDB Work begins to spin Globe site into activity center

New Bank? BY KIRK PINHO opment and historic tax credit pro- said. CRAIN’S DETROIT BUSINESS grams. After that project fell Upon completion, the DNR will through, plans were made for the make the center its Southeast Partial demolition began last public-use project. Michigan field office by relocating month on the former Globe Trading “Getting the final financing took about 20 employees from its cur- Co. building in the state Department more time than any of us wanted,” rent location in Southfield, Peter of Natural Resources’ effort to turn Di Rita said. “I feel like, given that Van Dyke, partner for Berg Muir- the Detroit site into a 43,000- we started this discussion with the head and Associates in Detroit and a square-foot outdoor activity cen- DNR over two years ago, I can say public relations representative for ter. that from beginning from first dis- Roxbury, said in an email. The $12.8 million project on the cussion to where we are today is Anthes said the operating funds Detroit River waterfront at 1801 longer than anyone would have for the outdoor activity center will Atwater St. is expected to be com- liked.” come out of the DNR Parks and plete by July 2014 after facing de- However, Di Rita said that once Recreation Division budget and lays over financing. that revenues are expected from Vicki Anthes, chief of the plan- Roxbury learned specifically what admission charges and rental fees ning section in the DNR’s Parks the DNR’s plans were for the prop- and Recreation Division, said the erty things moved quickly. for meetings and events. center will include features such “It was about 12 months from Those rates have not yet been Let ours compete for as a climbing wall; kayaking, that point to where we closed on set. The DNR plans to operate the snowmobiling, off-road vehicle rid- the financing,” he said. center in-house. ing and bicycling simulators; and Globe Development LLC is the The Globe building was con- your business. science classrooms. joint venture between Roxbury structed in phases between 1892 Loan amounts: $1,000,000.00 and above. “Our goal is to really bring the and Detroit-based Walbridge and 1900, Van Dyke said. It was outdoors indoors,” she said. Aldinger Co. that will be the pro- about 100,000 square feet when con- s Investment Real Estate s Accounts Receivable Funding comes from $11 million ject’s developer. Ann Arbor-based structed. Vacant for 22 years, the s Owner Occupied Real Estate s Equipment in Michigan Natural Resources Trust Hobbs & Black Architects is the pro- building was an automotive manu- s Lines of Credit s Bank Workouts Fund money and a $1.8 million ject architect. facturing and foundry facility un- brownfield tax credit previously Roxbury Group purchased the til 1950, and a warehouse from awarded to the site for a failed loft site from the Detroit Economic 1950-1991. development project, said David Di Growth Corp. for $1 this spring, Di “The fact that we were able to Rita, principal of the Detroit-based Rita said. When complete, the cen- salvage as much as we are sal- Roxbury Group. ter will be sold back to the DNR for vaging, and really giving it back to Detroit-based Urban Development $11 million. the community with a use like the Co. had planned on for-sale lofts at The entire eastern side of the discovery center, this is a fun pro- 800.509.3552 the site, but the project was then building, and the “vast majority” ject for that reason,” Di Rita said. www.eclipsecapitalgroup.com converted to market-rate rental of the south side of the building Kirk Pinho: (313) 446-0412, 2207 Orchard Lake Road, West Bloomﬁeld, MI 48320 units financed through the U.S. De- currently standing “will be stand- [email protected]. Twitter: “Since 1997” partment of Housing and Urban Devel- ing when we are done,” Di Rita @kirkpinhoCDB 20130617-NEWS--0021-NAT-CCI-CD_-- 6/14/2013 10:32 AM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 21

CALENDAR TUESDAY Attendees can tour tabletop displays CEOS SHARE WISDOM and hear industry experts discuss the JUNE 18 outlook for the commercial and resi- dential construction industries in Why Higher Ed Is Good for Business. AT PANCAKES & POLITICS Michigan. With David Sowerby, vice 11:05 a.m.-2:40 p.m.; strolling lunch Have a little politics with your president, Loomis Sayles & Co., and 12:40-1:30 p.m. De- breakfast at another event in the W. Jay Wortley, director of the office of troit Economic Michigan Chronicle’s Pancakes & revenue and tax analysis, Michigan Club. With Allan Politics speakers series, CEO Department of Treasury. Best Western Gilmour, presi- Roundtable, 7:30-9 a.m. June 20 at Sterling Inn, Sterling Heights. $45. Contact: Mary Carabott, (248) 972-1000; dent, Wayne State the Detroit Athletic Club, Detroit. University. Com- email: [email protected]; munity Arts Au- Guest CEO panelists are Nancy website: www.cam-online.com. ditorium, Wayne Schlichting, Henry Ford Health State University. System; William Pickard, Global Creating, Capturing and Retaining Val- $45 DEC mem- Automotive Alliance; and ue. 11:30 a.m.-1:30 p.m. June 25. Mar- bers, $55 guests Cynthia Pasky, Strategic Staffing keting & Sales Executives of Detroit. of members, Solutions Inc. A panel of industry professionals will Gilmour $75 nonmembers. The event is sponsored by discuss strategies for successful value Contact: (313) 963- Strategic Staffing Solutions, Blue creation, capture and retention at an 8547; email: [email protected]; web- Cross Blue Shield of Michigan, HAP, automotive roundtable luncheon. site: www.econclub.org. Quicken Loans Inc. and Bank of Management Education Center, Troy. America Corp. $45 MSED members, $60 nonmembers. Marketing Roundtable: Content (Not Contact: Cheryl Dry, (248) 643-6590, Tickets are $75. To purchase, visit www.msedetroit.org. Elvis) Is King. 5-7 p.m. Ann Arbor www.michiganchronicle.com. Spark. Use your brand content to strengthen your customer relation- Google: Leadership through Change. ships and build your company’s com- Michael Schwartz, founder of Positive 6-8 p.m. June 26. American Marketing petitive advantage. Ann Arbor Spark, Concepts and BLSR Associates, who Association Detroit. In the last Ann Arbor. Free. Contact: Alissa Car- will introduce Emotional Intelligence, decade, the automotive and marketing penter, (734) 372-4071; email: the business case for EI and how it industries have shared a common [email protected]; website: could help improve the bottom line of a theme of change. From market disrup- www.annarborusa.org/events. business. Free. Velocity Collaboration tion to rapid change in technology, Center, Sterling Heights. Contact: these industries endured shifts in Joan Carleton, (586) 884-9324; business models that tested many pro- WEDNESDAY email: [email protected]; website: fessionals and companies in Detroit. www.oakland.edu/macombouinc. With Michelle Morris, automotive in- JUNE 19 dustry director, Google. Iroquois Club, Bloomfield Township. $35 mem- The Art of Networking. 8-10 a.m. Better bers, $45 nonmembers, $20 students. Business Bureau Serving Eastern FRIDAY Contact: Dawnaree Demrose, (248) 622- Michigan. Learn how to make the JUNE 21 8247; email: [email protected]; most of networking opportunities. website: www.amadetroit.com. With Denise Roberts, creator of “The Starting Your Own Business. 9 a.m.- Art of Networking.” BBB, Southfield. 4 p.m. Ann Arbor Spark. Learn about Oakland Chamber Network Regional Free. Contact: Doris Hendricks, (248) personality traits that impact entrepre- 799-0305; email: dhendricks@eastern Mixer. 6-8 p.m. June 26. Southfield neurship; creating a marketing plan michiganbbb.org; website: www.de Chamber of Commerce, Crain’s Detroit for a business; legal, accounting and troit.bbb.org/events-calendar. Business, media sponsor. Networking. risk considerations; product develop- Park West Gallery, Southfield. $10 ment; business plans; and financing Southfield chamber members in ad- Evening Mixer. 5:30-8 p.m. Downriver options. Spark East, Ypsilanti. $25. vance, $15 at the door; nonmembers and Detroit Business Association. Contact: Alissa Carpenter, (734) 372- $25. Contact: www.southfieldcham Networking. Full Moon Bar & Grill, 4071; email: [email protected]; ber.com/ocnmixer. Riverview. Free. Contact: (313) 338- website: www.annarborusa.org/events. 8003; [email protected]; www.dadbanet work.com. UPCOMING EVENTS THURSDAY Business Connections: 5 Keys to High Quality Recommendations, Introduc- JUNE 20 tions & Referrals. 7:30-9 a.m. June 25. Butzel Long Taxation and Succession Jewish Vocational Service and Com- Planning Institute. 7 a.m.-1:30 p.m. munity Workshop, HR Solutions Geared toward CPAs and financial Group, Michigan Works Oakland HOSTS A FREE SPONSORED WEBINAR: planners. Presented by Butzel Long at- County, State of Michigan: Workforce torneys with experience serving busi- Development Agency, Veterans’ Ser- nesses and individuals with taxation, vices Division. Learn how to leverage estate and succession planning, and your network and turn it into a corporate and employment needs. stream of recommendations, introduc- Troy Marriott. $100. Contact: tions and referrals. With Greg RIGHT TO WORK Jonathan Spencer, (313) 983-6995; Peters, coach, The Reluctant Network- email: [email protected]; website: er LLC. JVS, Southfield. Free. www.butzel.com/tax2013. Contact: Liz Rivard, (248) 233-4481; What Does It Mean for Michigan Employers? email: [email protected]; website: www.jvsdet.org. Health Care Next: Rx Reinvention. 7:30- 10 a.m. Inforum. Leaders from indus- TUESDAY, JUNE 25 tries that are reinventing themselves Midyear Economic Forecast and State will share lessons learned and insights of the Industry Breakfast. 7:30-10:30 12 – 1 P.M. on opportunities in times of great a.m. June 25. Construction Associa- change. With Colleen Haley, executive tion of Michigan, Home Builders As- Right-To-Work is now the law of the land in vice president, U.S. OEM business sociation of Southeastern Michigan. unit, Yazaki North America; Joyce Michigan. This webinar will discuss what this Jenereaux, president, Detroit Media new law means to public and private employers Partnership; and Cathy Nash, former CALENDAR GUIDELINES going forward. president and CEO, Citizens Republic If you want to ensure listing online Bancorp. Macomb Community College, and be considered for print Warren. Contact: $20 members, $30 DISCOVER: nonmembers. Contact: (877) 633-3500; publication in Crain’s Detroit ADAM S. FORMAN website: www.inforummichigan.org. Business, please use the online Forman’s practice focuses on calendar listings section of U How the new law affects existing and www.crainsdetroit.com. Here’s future labor agreements defending claims of wrongful Women’s Leadership Breakfast. 8-10 how to submit your events: discharge, discrimination, a.m. With Mary Bennett, president of U Which legal obligations have changed MLBennett Consulting LLC, who will From the Crain’s home page, click and those that remain the same harassment, retaliation and lead an interactive discussion cover- “Detroit Events” in the red bar wage and hour issues. He also near the top of the page. Then, ing foundational and critical informa- UÊBest practices regarding what you can represents management in labor tion related to the status of women in click “Submit Your Entries” from say and do --- and what is prohibited the accounting profession. The the drop-down menu that will arbitrations, unfair labor practice Townsend Hotel, Birmingham. $89 appear and you’ll be taken to our --- when implementing the new law charges and collective bargaining. MACPA members, $99 others. Con- online submission form. Fill out tact: (855) 594-4273; email: the form as instructed, and then PRESENTED BY [email protected]; website: click the “Submit event” button at www.michcpa.org. the bottom of the page. That’s all there is to it. Register at crainsdetroit.com/webinars Emotional Intelligence: The Secret In- More Calendar items can be found gredient to Business Success. Noon- on the Web at 1 p.m. Macomb-OU INCubator. With www.crainsdetroit.com. DBpageAD.qxp 6/14/2013 10:37 AM Page 1 20130617-NEWS--0023-NAT-CCI-CD_-- 6/14/2013 10:11 AM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 23

BUSINESS DIARY

CONTRACTS Creative Edge Nutrition Inc., Madison Heights, announced that ProSource C.W. Golf Architecture, Ann Arbor, a Performance Products Inc., full-service golf course design compa- Manasquan, N.J., has become an offi- ny, has retained Resort & Golf Market- cial online retailer of Cenergy Nutri- ing, Bloomfield Hills, for strategic tion’s product line. Websites: planning and public relations services. www.prosource.net, www.cenergynu Websites: www.cwgolfarch.com, trition.com. www.resortandgolf.com. Lawrence Technological University, EXPANSIONS Southfield, entered into an agreement with Germany’s Wurth Foundation to Dexter Wellness Center, operated by Year-round exposure. offer four degree programs to Ameri- the Chelsea-Area Wellness Founda- can and German students, with half of tion and the Dexter Wellness the instruction to be at Lawrence Coalition, opened at 2810 Baker Road, Tech and half at German universities. Dexter. Telephone: (734) 580-2500. Instruction will begin in summer and Website: www.dexterwellness.org. High-quality leads. fall 2014 for Doctor of Engineering in Cinetic Automation Corp., Farmington Manufacturing Systems, Master of Hills, part of the Fives Group, finalized Business Administration and Master a cooperation agreement with Dalian of Science in Industrial Engineering Zhiyun Automation, an engineering degrees. Instruction for the Doctor of company in China, to meet increasing Exclusive content. Business Administration degree will demands for products in Asia. Dalian start in 2015. Website: www.ltu.edu. Zhiyun will provide local support to NovoDynamics Inc., Ann Arbor, a Cinetic Automation’s growing cus- developer of advanced pattern recog- tomer base in the region. Both compa- nition and analytic technologies, was nies will focus on engine, transmis- added to Canon U.S.A. Inc.’s Canon sion and axle assembly programs, Image Capture Solutions Alliance while sharing engineering and manu- Program. NovoDynamics software facturing expertise. Website: supports imageFormula document www.fivesgroup.com. scanning devices from Canon. Web- GKN Sinter Metals Inc., Auburn Hills, site: www.novodynamics.com. is planning a $10 million expansion of Casadei Steel Inc., Sterling Heights, its production facility in Gallipolis, was awarded the structural steel con- Ohio. The project is expected to add 50 tract for the new General Motors data full-time jobs and generate up to $20 center at the Milford Proving Ground million in additional sales over the campus, Milford. Granger Construction next two or three years. The expan- Stake your claim: Co., Lansing, is the general contractor. sion will include the installation of Website: www.casadeisteel.com. equipment to launch production of For exclusive ad placement, contact Marla Wise Mars Advertising Inc., Southfield, a differential gear components. Web- shopper marketing company, is work- site: www.gkn.com/sintermetals. at 313-446-6032 or email [email protected]. ing with Concentric, Cambridge, Mass., a leader in agent-based model- NEW PRODUCTS ing software applications for market- Gale Group Inc., Farmington Hills, ISSUE DATE: December 30 | CLOSE DATE: October 31 ing simulations, to integrate one of part of Cengage Learning Inc. and a Concentric’s software platforms into publisher of research and reference Compass, a new Mars marketing ser- resources for libraries, schools and vice that allows Mars clients to rede- businesses, made available the Air & fine engagement planning by building Space and Smithsonian magazines’ from the consumer level out. The plat- archive, the first resource in the line form uses “agents” to forecast simu- of Gale-Smithsonian Institution col- lated consumer behavior, assess pro- lections. The content of Smithsonian jected sales and risk profiles, and (1970 to present) and Air & Space (1986 allow users to evaluate strategies to present) is available in one search- in a test-and-learn environment. able archive. Website: www.gale.cen Websites: www.concentricabm.com, gage.com. www.marsusa.com. GreenLancer Energy Inc., Detroit, Gentherm Inc., Northville, a developer launched a propriety e-commerce of innovative thermal management cloud-based platform where contrac- technologies, and De Rucci Beddings tors can order the engineering docu- Co. Ltd., Dongguan, Guangdong, Chi- ments needed to quickly develop solar na, a mattress and bedding specialist, energy projects. The “Virtual Engi- signed an agreement to manufacture neering Center” provides clients ac- and sell a line of heated and cooled cess to a virtual network of engineers mattress products in China. Gen- who help cut costs and streamline the therm will supply its Climate Control project development process from Sleep System for installation into initial feasibility studies through specifically designed mattresses man- the permit drawings. Website: ufactured by De Rucci. The mattresses www.greenlancer.com. will be sold in China by De Rucci and TRW Automotive Holdings Corp., Livo- its distributors under the De Rucci 3D nia, is delivering its next-generation brand beginning this fall. Website: SPR4 (Snake Pretensioner Retractor) www.gentherm.com. seat belt assembly for its worldwide MiPro Consulting LLC, Milford, a con- customers and is launching the prod- sultancy specializing in implement- uct in North America, Europe and ing, upgrading and optimizing Oracle China. The SPR4 uses a plastic piston Corp.’s PeopleSoft applications, was instead of conventional metal compo- retained by Covanta Energy Corp., nents to transfer tensioning torque, Fairfield, N.J., to implement a Peo- resulting in a simpler and lighter pleSoft Asset Lifecycle Management weight design, as well as more com- project. Website: www.miproconsult pact packaging. Website: www.trwau ing.com. to.com. Optimizerx Corp., Rochester, specializing in digital patient financial sup- STARTUPS port technology, has an agreement J’Adore Shoes opened at 29538 North- with PDR Network LLC, Montvale, western Highway, Southfield. Tele- N.J., a distributor of FDA-approved phone: (248) 356-7463. Website: patient drug safety and support www.facebook.com/jadoreshoes. services for electronic health record and e-prescribing platforms, for PDR to bring to market Optimizerx’s IARY GUIDELINES solution for e-Coupons to the D parties’ combined EHR network. Send news releases for Business Websites: www.optimizerxcorp.com, Diary to Departments, Crain’s www.pdrnetwork.com. Detroit Business, 1155 Gratiot Michigan Science Center, Detroit, re- Ave., Detroit, MI 48207-2997 or ceived approval from the Michigan send email to cdbdepartments@ Public Service Commission for Detroit crain.com. Use any Business Diary Thermal LLC, a Detroit Renewable En- item as a model for your release, ergy LLC company, owner and opera- and look for the appropriate tor of the Detroit district steam sys- category. Without complete tem, to continue providing renewable information, your item will not run. energy to the science center. Website: Photos are welcome, but we cannot www.detroitrenewable.com. guarantee they will be used. 20130617-NEWS--0024-NAT-CCI-CD_-- 6/14/2013 10:12 AM Page 1

Page 24 CRAIN’S DETROIT BUSINESS June 17, 2013

PEOPLE

CONSTRUCTION consultant, JFM Consulting Group ham, from vice media and community relations, CKC Inc., Detroit, from independent evalu- president, struc- Brian Deming to N THE SPOTLIGHT Agency, Farmington Hills, from pub- ation consultant. tured finance I vice president, lic relations and marketing manager, group, Fifth Third Plex Systems Inc., Troy, has MiG Construction, DMC-Children’s Hospital of Michigan. Bank, Southfield. Detroit, from se- FINANCE appointed Heidi Melin its first chief nior project man- John VanLoon to director of marketing Lyne Charron- marketing ager. and business development, Interna- Keller to senior officer. Plex tional Bancard Corp., Clawson, from manager of the provides cloud owner and customer architect of jVan medical device enterprise CONSULTING Group, Detroit. practice in the resource Janet Zimmerman Tracy Beyersdorf to director, restruc- managing con- planning to senior planning turing and turnaround advisory prac- sulting group, software for Deming and evaluation Beyersdorf tice, Amherst Partners LLC, Birming- Plante Moran manufacturers. PLLC, Southfield, Melin, 47, had from vice presi- been senior dent of endovas- vice president cular business, Adanti-Joy Benvenuti Sullivan Melin and chief Vascutek Ltd., a marketing Intellectual Property | Litigation | Technology Terumo company, officer for enterprise cloud Ann Arbor. company Eloqua, Vienna, Va. Laurie Horvath to She earned a bachelor’s degree in partner, Baker political science and organizational Tilly Virchow psychology from Willamette Krause LLP, University, Salem, Ore. Lawyers who truly Southfield, from Charron-Keller director. LAW understand our Derick Grembi to first vice presi- Gina Staudacher to member, Howard company and its dent, private & Howard Attorneys PLLC, Royal Oak, Casola Ferlito technology wealth manage- from partner, Baker Tilly Virchow Pat Adanti-Joy to vice president, Franco ment in the pri- Krause LLP, Chicago. Public Relations Group, Detroit, from -TOM LINN , CFO Tiger Logic Corporation vate banking and account manager. Also, Tina Benvenuti investment group MANUFACTURING Sullivan to vice president from account of the Migliazzo Tianjin Liu to vice manager, Stephanie Casola to account Group, Merrill president of body manager from senior account execu- Lynch Wealth component sys- tive, and Joe Ferlito to account manager Management, Horvath tems, engineering from senior account executive. YOUNG BASILE. Troy, from direc- division, Denso In- Strategic advisors to the world’s tor, BlackRock Investments LLC, ternational Ameri- NONPROFITS Bloomfield Hills. ca Inc., Southfield, most innovative companies. Sean Becketti to senior vice president fom director of body component and head of modeling and analytics in systems. enterprise risk management, Flagstar ANN ARBOR TROY SILICON VALLEY CHICAGO Bank, Troy, from vice president and MARKETING www.youngbasile.com head of applied research, Fannie Mae, Washington, D.C. Vickie Winn to vice president, Liu

Johnson Mooney

Beth Johnson to director of major gifts and planned gifts, Arbor Hospice Foun- dation, Ann Arbor, from director of development, Ann Arbor Summer Festival, Ann Arbor. Also, Christina Mooney to development director, from development director, Performance Network Theatre, Ann Arbor. Laura Huot to vice president of pro- Kyle Sasena, VP, International Banking Specialist grams and COO, Fred Fordon, SVP, Commercial Banking Manager Judson Center Inc., Royal Oak, from director of children’s behav- The Entrepreneurial Bank. ioral health, The Guidance Center, Southgate. SERVICES Level One Bank makes international trade easy. Huot Carl Blazik to vice president of technical operations, NSF Import and export, safe and eﬃcient. International Strategic Registrations Ltd., Ann Arbor, from vice president of North American operations. Also, Brad Kitchen to vice president of Level One, your international bank, right here at home. North American operations, from general manager of the NSF-ISR Canada, and Jeff Greaves to business and tech- Call us. nical manager in Ann Arbor, from senior lead auditor, NSF-ISR, Windsor, Ontario. Contact Greg Wernette Entrepreneur and Chief Lending Oﬀicer, 248-737-0300 PEOPLE GUIDELINES Announcements are limited to management positions. Send submissions to Departments, Crain’s Detroit Business, 1155 Gratiot Ave., Detroit, MI 48207- 2997, or send email to [email protected]. Releases must contain the person’s name, new title, company, city in which the person will work, former title, former company (if not promoted from within) and former 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com city in which the person worked. Commercial Banking ∫ Retail Banking ∫ Mortgage Services Photos are welcome, but we cannot guarantee they will be used. 20130617-NEWS--0025-NAT-CCI-CD_-- 6/14/2013 6:11 PM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 25 Iron Chef Michael Symon finds MARKET PLACE

CONSULTANTS BUSINESS OPPORTUNITIES

C. W. JENNINGS INDUSTRIAL ENTREPRENEUR LOOKING TO BUY Detroit hits the spot for eateries ENTERPRISE ATTENTION MARKETING COMPANY OWNERS! Global Building and Loans Are you trying to figure out your exit Manufacturing-Distribution strategy? What will become of your Iron Chef Michael When you opened Roast, Roast are always amazed that De- company, your staff, and your customers? Cleveland-Chicago-Detroit Symon bet big on Detroit Detroit was a very different troit is so different than what is A privately held, international marketing company is looking to expand through when he opened Roast in city. What did you see that shown in the news. Call 1-855-707-1944 acquisition. If you are looking to sell your the Westin Book Cadillac others didn’t? marketing firm, let’s talk and find out if there are any synergies. Contact the owner in 2008. Detroit is a very differ- I have to ask about Roast’s unchar- FINANCIAL SERVICES directly, 100% confidential and private, That was before the ent city now. You know, acteristically affordable happy hour. email:[email protected] or Dan Gilbert renaissance, we felt it was risky, but Who came up with it? (248)891-2020 before the appointment of (developer) John Ferchill We lose money on happy hour, Call Us For Personalized an emergency manager was from Cleveland and but it’s all right. Service: (313) 446-6068 and before the national we had a lot of faith in It’s there as a way to open the narrative about Detroit him, so the more we doors to a city. To show off what CLOSING TIMES: Monday 3 p.m., talked the more we con- we do. We want to make an effort one week prior to publication date. changed from one of de- Please call us for holiday closing times. tinued to like Detroit. to have everyone be able to enjoy spair to resurgence. Q&A FAX: (313) 446-1757 My dad is a Ford guy, Now Symon, who also it. E-MAIL: [email protected] Michael Symon, so I was in Detroit a lot as LEGAL SERVICES has restaurants in his na- INTERNET: restaurateur a kid. The more time we What is your plan for B Spot in www.crainsdetroit.com/section/classifieds tive Cleveland and Pitts- spent, the more people we metro Detroit? Immigration Law Firm, AV-rated Confidential Reply Boxes Available burgh, is looking to ex- met, the better we felt about it. But We are still deciding exactly PAYMENT: All classified ads must be pand his footprint by opening Antone, Casagrande & Adwers, P.C., prepaid. Checks, money order or there was a risk in opening a where we want to be. We want to Seven-Attorney Firm Crain’s credit approval accepted. several of his B Spot burger joints Credit cards accepted. restaurant there. There is always a open three or four in the next two Dedicated to Business, Employment locally, the first set to open in risk. years. We are just not 100 percent and Family Immigration Matters See Rochester Hills next year. Farmington Hills, MI 48334 Crainsdetroit.com/Section/Classifieds sure where they will be yet. (248) 406-4100 www.antone.com for more classified advertisements Symon says that despite its Would you consider opening anoth- It’s the same premise as Roast, “burger” moniker, B Spot is really er Roast in the suburbs? just family friendly. It’s high-end a casual version of his highly ac- I don’t think we will do another food in a casual atmosphere. claimed Roast. Roast. Our more casual restau- Crain’s Multimedia Editor rants will be in both downtown How do you win best burger three REAL ESTATE Nathan Skid talked with Symon and in the suburbs. We thought it years in a row at South Beach Wine & about bringing his B Spot restau- was important that if we open a Food Festival? rants to metro Detroit, winning restaurant in Detroit, we do it in We have the best burgers. You AUCTIONS INDUSTRIAL PROPERTY the best burger in America title the heart of the city. At the end of win it once, it can be fluke. Twice AVAILABLE NOW three years in a row and what oth- the day, a city is as strong as its is pretty good. But three? That’s se- ABSOLUTE Taylor/Romulus Area Near Detroit Metro Airport er famous chefs are saying about downtown. rious. 4,000 to 80,000 sq. ft. Detroit. There are a lot of places that AUCTION SELLING TO THE HIGHEST BIDDER, Ideal for logistics, mfg., service co., distribution, What are you hearing about Detroit make great burgers. Food is objec- office warehouse etc. Call for Availability from your peers? REGARDLESS OF PRICE! I have to ask, why Detroit? tive, but the one thing we do that 6632 Minnow Pond Dr. West Bloomfield Yvon Rea 734-946-8730 or Detroit is pretty similar to Some of my chef friends make very few people do is treat a $7 visit our website www.reaconstruction.net Cleveland. I felt comfortable in De- fun of me because my restaurants hamburger the same way we troit. Both cities have had tough are in Cleveland, Pittsburgh and would treat a $40 steak. OFFICE SPACE times. We kind of saw the effect of Detroit. But when we have success in I’ve heard the burger category is re- PRIME OFFICE SPACE NOW the economy on Cleveland. We AVAILABLE! those cities, there is always an in- ally competitive. Is it that tough to opened our first restaurant there Newly renovated first-class 17 years ago. But we saw the effect terest. They wonder how you can win? professional office space w/reception a restaurant can have on a city and be successful outside of New York, Oh, it’s very competitive. Most support for those seeking maximum it gets exciting. We liked our first Los Angeles or Chicago. chefs like burgers more than they Held On-Site: Wed. June 26th at 6pm flexibility in an elegant setting with exceptional skyline and city views. restaurant to be in the core of the I think in the restaurant world, like steaks. We won three years in Sunday Open Houses: June 16th & 23rd Noon - 3pm Easy I-75 access w/prestigious Big city. That is where most cities it takes time to change people’s a row with three different burgers. Beaver address in Troy, MI. 136- breathe. perspectives. Chefs that I bring to We love our burgers. Built without compromise, this West Bloom- 7,000 SF immediately available field estate offers superb amenities and including window offices, one-of-a-kind appeal. With 9,478+/- sq. ft, 6 beds, and new Brazilian floors on the second workstations, and common areas. level, this home welcomes you to exceptional Call 888-844-2772 for additional granite floors that open up to the two-story information or to schedule a tour. great room with stone fireplace, recessed lighting, and beautiful cherry wood floors. RETAIL SPACE The lower level walk-out is its best kept secret with marble floors, Bose surround sound, wet GR PE fund buys Oak Park equipment company bar, tiered seating theater, and a custom built SHOPPING CENTER FOR SALE recording studio. Also has heated garage and 52,000 SF. 88% occupancy. Excellent heated driveway! Selling to the highest BY TOM HENDERSON clude the Mayo Clinic, Duke Universi- neys, accountants — flows out of bidder, regardless of price! condition. Hard corner location. Sale on assumption. $2 mil investment gives a CRAIN’S DETROIT BUSINESS ty Medical Center and the Cleveland state, as well as the eventual prof- Rose Auction Group | Beth Rose CAI, Auctioneer 17% cash on cash return. Located in Clinic. its,” he said. “We’d like to keep RoseAuctionGroup.com | 877.696.7653 Oak Park-based Mopec Inc., a northern Macomb County. Principals may Coming in as new CEO is Terry those dollars local and help raise call. maker of pathology and mortuary O’Rourke, one of Blackford’s in- the tide here. ANTON, SOWERBY equipment, has been purchased by & ASSOCIATES vestors. He is the former president “And when we did this deal, the (586) 469-8888 the Michigan Prosperity Fund, a new of Aspen Surgical, a maker of med- Mopec people said, ‘We could have private equity fund based in ical devices that was sold after he sold this company to any number WATERFRONT PROPERTY Grand Rapids. grew revenue from $25 million to of suitors, but we sold it to you 120± Acre The sale price wasn’t disclosed. $120 million in guys because we have a shared val- Recreational Property It was the second acquisition for six years. ue system by being in Michigan,’ ” LAKE CHARLEVOIX the fund, which is being raised and Helminski said Helminski. “It proved out the North Old Mackinaw Road The Ultimate Boating Lake managed by Grand Rapids-based will be chair- model.” Cheboygan, MI Blackford Capital LLC, and the first man of the Comerica Bank and Cincinnati- ONLINE-ONLY in Southeast Michigan for the board. based Northcreek Mezzanine Fund I fund. “The Michi- LP provided financing for the AUCTION Blackford has raised about $7 gan Fund came deal. th million for the fund in a little more Wednesday, June 26 about because Blackford Capital was founded BIDDING ENDS AT 1PM than a year. It is targeting a fund of Michigan has in Santa Monica, Calif., where it See Website for Photos, and More Info! $20 million. been one of the still has an office. Founder Martin Helminski 100+ Homes and Lots Managing director Jeff Helmins- most active Stein, a native of Grand Rapids, Connected to Lake Michigan ki wouldn’t disclose Mopec’s rev- states in the nation when it comes moved the headquarters to Michi- enue but said it was at the lower Buyer Agent . . . NO Cost to private equity — about $40 bil- gan in 2010. end of the range of revenue for lion in transactions here in the It has seven portfolio companies (517) 676-9800676-9800 $15 Million to $100,000 on other lakes companies Blackford invests in, last decade — but most of the deals with combined revenue of about www.sheridanauctionservice.com Joe Blachy which is $20 million to $100 mil- have been done by firms outside $225 million and more than 950 em- (231) 409-9119 lion. the state,” said Helminski. ployees. Advertise your Mopec, founded in 1992, has 68 “Which means that most of the Tom Henderson: (313) 446-0337, Products and Services in email: [email protected] website: joeblachy.com employees at its 60,000-square-foot expense that goes along with the [email protected]. Twitter: Call anytime between 7am & 10pm 7 days a week! facility in Oak Park. Customers in- Crain’s Detroit Business deals — paying advisers, attor- @tomhenderson2 420 Howard St., Petoskey, MI 49770 20130617-NEWS--0026-NAT-CCI-CD_-- 6/14/2013 5:51 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS June 17, 2013 Polk: Company leader ponders future UPCOMING ■ From Page 1 term for the business, (that a sale) you’re relevant,” Anwyl said. PARTNER EVENTS might be the opportunity for what “This is a way of locking in value. the future should hold. Selling (Son’s graduation It leverages the strengths of both wasn’t something I had contem- “ companies. You can create some- 2013Crain’s partners with a variety of plated. I had a lot of calls over from high school) thing different and new.” organizations on events and time. We hired (New York City- Anwyl expressed slight surprise based Evercore Partners Inc.) to look made me realize, at the $1.4 billion sales figure. In special subscription offers for their members. at the opportunities. Selling April, he speculated in a conversa- Please visit their websites below. turned out to be the right thing to long-term for the tion with Crain’s that Polk would do,” he said. sell for $1 billion. The Polk family isn’t extremely business, (that a “The price tag was pretty high. extensive. Polk’s father and grand- It’s a big number,” Anwyl said, Tee It Up - at the Michigan Hispanic Chamber fathers were only children, and he sale) might be the adding that the 10 percent equity of Commerce (MHCC) 22nd Annual Golf Outing. said the small family favored a portion of the deal makes the ac- Join Golf Committee Chairman - Grace Lieblein, sale: “Pretty universally, (the fam- opportunity for what quisition less cash intensive. Vice President Global Purchasing and Supply Chain ily is) in favor of what we’re do- the future should Specifics of the equity distribu- at General Motors and fellow MHCC members, ing.” tion portion of the deal were not colleagues, clients and friends for a fun day of Polk is very cognizant of his last hold. disclosed. networking and golf. name as a long-established and lu- ” IHS said it is using $175 million Aug. 19 at three championship courses: Cherry crative brand, but also that a sale Stephen Polk, R.L. Polk & Co. in cash on hand to finance the Creek Golf Course, Greystone Golf Course and The now protects the family financially. deal. The remainder is from a cur- “After 143 years, the family lega- rent revolving credit facility and Orchards Golf Course. For more information call cy was important from my per- new debt financing. Barbara Lange at (248) 792-2763 or visit us at Stephen Polk joined the family spective. But my role is to be a IHS President and CEO Scott Key www.mhcc.org. company in 1981 as a city directory steward for the family. Knowing production trainee in Polk’s Rich- said his firm likes Polk’s stability times change, progress has to be mond, Va., office. A year later, he and its long client relationships, made, and there certainly is the worked for Polk in Dallas before noting that 75 percent of the firm’s The Power of Ownership: How to Build a Career opportunity to take the business to going into the automotive statis- revenue is recurring and 90 percent and a Business. Presented by John J. Bailey, a whole new level,” Polk said. tics unit in 1984. of that is renewed annually. author of “The Power of Ownership: How to Build a “It’s a perfect situation for fi- Polk worked on the firm’s first Polk generated $401 million in Career and a Business”. John J. Bailey founded John nancial security for the family. launch of online data delivery, for revenue in 2012, 60 percent of which Bailey & Associates Public Relations and grew it into There’s some risk when every- GM, in 1985, the year his brother, came from Carfax and 40 percent thing is tied up in a single entity. from Polk’s automotive industry a $5 million ﬁ rm. His success and ethics led him to company President Ralph L. Polk Knowing the business has a very Jr., died in a northern Michigan analytics and recall services. be recognized by President George W. Bush. For more good home is important to me.” Polk bought Carfax in 1999. The information visit: ThePowerofOwnership.com. boating accident. Stephen Polk In March, Polk retained Ever- was elected vice president that fall. price wasn’t disclosed. June 25 • 11:30 a.m. - 1 p.m. core to “explore strategic growth Polk said he was offered, and IHS said it plans to expand Car- Loccino Italian Grill & Bar, 5600 Crooks Rd., Ste. 106 opportunities,” knowing a sale has accepted, chairmanship of fax’s global footprint. The unit has $22 Troy Chamber members • $32 non-members was the probable, but not neces- IHS’s automotive unit. How the some presence in Europe, but it An additional $5 will be charged to those sary, outcome. unit is operated, and what it will will be deployed in growing mar- registering on the day of the event. RSVP to “We were never compelled to do in the future, will not be ironed kets such as India, Russia, Brazil (248) 641-8151, [email protected] or sell,” he said. out until after the deal closes. and China. www.troychamber.com/cal He said the intensity of interest “There’s not a lot of detail on IHS is forecasting automotive from buyers and the favorable na- how we will operate the company growth in those and other emerg- ture of the capital markets made a after we close (the deal),” he said, ing markets, and that expansion sale the best option. IHS bid on will fuel a need for data as produc- Government Contracting 101 but added that he will remain in his Polk in an auction. tion shifts to these markets. Presented by the PTAC of Schoolcraft College. current Southfield office and the Polk declined to identify the oth- Buying Polk bolsters IHS’s own Did you know the federal government purchases unit will be operated from there. er companies that bid on his com- The future of the Polk name as a automotive unit, which handles more than $500 billion of goods and services a pany, or how many there were, cit- brand will be decided after the industry forecasts for OEMs, sup- year, and that the State of Michigan has a diverse ing confidentiality agreements. close, too. pliers and dealerships. portfolio valued at billions of dollars? Find out what “There was fairly significant in- “The reality is, it’s not my deci- IHS (NYSE: IHS) bills itself as an it takes to sell your goods and services to the terest from a significant number of sion to make. That’s one of the information, insight and analytics Federal Government and the State of Michigan. players,” he said. things we’ll discuss right after company with more than 6,700 em- In addition, learn about the free services and Polk declined to specifically say close — one of first things to be dis- ployees in 31 countries. It had rev- continuous government contracting support that if IHS was the highest bidder. cussed. What Polk represents in enue of $1.5 billion last year, a 15 the PTAC (Procurement Technical Assistance “All things considered, they the auto sector is something of val- percent increase over 2011. Center) of Schoolcraft College can provide. were the best offer we had seen,” ue. IHS will take that into ac- There are no changes planned July 11 • Schoolcraft College • 9 a.m. – Noon he said. “It certainly is a generous count,” he said. for Polk’s Southfield headquarters, offer. We’re pleased with the num- Wilinsky said. Polk operated from $45 per person IHS echoed that statement. ber we got.” an office on Detroit’s Howard Registration required: (734) 462-4438 “We always evaluate brand Polk assembles comprehensive names as part of the integration Street for decades until moving to automotive sales and forecasting planning process. As is our normal Brewery Park, site of the former data, provides vehicle recall ser- approach, we will work this out as Stroh brewery and now home to vices for manufacturers, hands Crain’s Detroit Business and Crain MSED Monthly Meeting part of post-close planning with out annual awards and has a diver- Communications Inc. Polk moved Annual Automotive Roundtable Luncheon: the Polk team,” said Dan Wilinsky, sity marketing services arm. senior director of global media re- from Brewery Park in 1996 to the “Creating, Capturing & Retaining Value in The acquisition was announced First Center Office Plaza in South- lations for IHS, said via email last Automotive” June 9. Polk and its wholly owned field. week. Hear a candid, off-the-record discussion from a subsidiary, fee-based used-car his- “Detroit is a significant head- In other words, IHS could decide panel of experts representing automotive OEMs tory provider Carfax, will become quarters for both Polk and existing to trade on the well-known Polk and suppliers. They will answer questions and part of the IHS automotive global IHS employees. This will contin- name rather than operate under share proven methodology and past experiences business line. ue,” he said. the IHS brand, or it could drop that have led to successes within their supply R.L. Polk traces its roots to the IHS didn’t provide a specific an- Polk’s moniker in favor of some- chain strategy. 19th century: Ralph Lane Polk swer when asked about Polk’s thing else. PANELISTS: Martin Fischer, President, Hella founded the company in Detroit in nearly 1,300 employees worldwide. 1870 with the publication of a di- Jeremy Anwyl, vice chairman of Polk satellite offices are in Long Corporation; Scott Dickinson, VP Purchasing, Santa Monica, Calif.-based automo- Akebono; Larry Berkowski, President, Wellman rectory of the names of 17,500 resi- Beach, Calif.; Woodcliff, N.J.; Cen- dents and 600 professionals and tive information research site Ed- treville, Pa.; Canada; England; Engineering Resins; OEM Purchasing Executive - tradespeople along the Detroit and munds.com, said the Polk-IHS deal France; Germany; Spain; Italy; TBA; MODERATOR: Dave Andrea, Sr. VP, Industry Milwaukee railway, according to makes sense because Polk was seek- Australia; China; and Japan. Analysis & Economics, Original Equipment the company’s official history. ing to freshen itself as a business. Wilinsky said Polk’s corporate Suppliers Association It became known as a national “It’s a venerable company. leadership would be retained. June 25 • 11:30 a.m - 1:30 p.m. publisher of city directories. They’ve been doing what they’ve “We see great opportunity to Management Education Center, Troy General Motors President Alfred been doing for a very long time,” leverage their senior relation- MSED Members: $45 • Non-Members: $60 Sloan asked Ralph Lane Polk II to he said, but added that Polk “has- ships, developed over 100 years, as For more information and to register, impartially tabulate and publish n’t demonstrated agility.” we drive additional values and so- visit www.msedetroit.org or call Meeting automotive statistics in the early “Polk is not a company you lutions,” he said. Coordinators at (248) 643-6590. 1920s, according to the company’s think of in terms of innovative, Bill Shea: (313) 446-1626, history. That launched its vehicle earth-shattering new products. In [email protected]. Twitter: data services. this world, you have to make sure @bill_shea19 20130617-NEWS--0027-NAT-CCI-CD_-- 6/14/2013 6:12 PM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 27 Ducati: New dealership shifts the competition into gear ■ From Page 3 Knoll said while power sports management, automotive business He opened TT Motorcycles dealers selling Ducati products marketing and banking and fi- about 10 years ago but has been in and other motorcycle lines have nance from Northwood University in Obviously, we’re not happy to the motorcycle business for about come and gone, he’s banking on West Palm Beach, Fla. “ 60 years, starting out working in a the high-end “lifestyle, service and Knoll said Ducati initially had see another (Ducati) dealer (so Triumph shop on Fort Street in enthusiasm” that Ducati cus- approached him about opening Detroit. tomers seek. an exclusive dealership in Bar- nearby). ... To put a dealer 30 Part of surviving economic cy- “We’re really trying to do rington, Ill., because someone cles, Leppan said, is balancing the things like other Ducati dealers else had been awarded the dealer- minutes away makes no sense. investments you make in the deal- have never done in this market be- ship in Southeast Michigan. But ” ership with the profit you’re gen- fore,” he said, such as hosting he wanted to open a site in metro Bob Leppan, TT Motorcycles erating, he said. Motorcycle charity events, wine tastings and Detroit and got the chance when brands want to mimic Harley- cross-promotional efforts with lo- the letter of intent with the for- Davidson “and want to build these cal Italian restaurants or stores mer candidate expired. He views perience that Ducati is trying to market for high-performance, Taj Mahal” dealerships, Leppan that share a similar heritage and Oakland County as a strong home portray for its brand, Knoll said. high-priced bikes is much smaller. said. “But you can’t pay out more customer base. market. “There’s been a demand for that TT sells Ducati motorcycles and than you take in.” type of venue ... that will be able to other brands, along with scooters. Leppan said the profit on the offer the services and camaraderie Faced with the tighter market motorcycles he sells is roughly Tuning a career Italian feel that the brand really deserves,” he and the need to make money dur- $1,000 for every bike sold. “I can- Knoll is no stranger to power Ducati Detroit is leasing space said. ing a four- to five-month window of not imagine survival with Ducati sports dealerships or business cul- at the Birmingham site, with an The new dealership will also good weather and keep costs under alone,” because it’s such a limited ture. option to buy, Knoll said. Broker- include a dynamometer to tune control the rest of the year, other market, he said. His parents own two Westland age Colliers International Inc. repre- motorcycles to their maximum local Ducati dealers have come But Knoll said he is expecting companies: Great American Base sented it in the deal. capacity, located within a sound- and gone, he said. higher gross margins on the Co., which produces case work, or Ducati Detroit is investing deadening room with a window to That’s why he said he’s skepti- Ducati motorcycles he sells and the base for slot machines, and $300,000 in renovations, décor and enable customers to watch the cal about the geography of the new will pay equal attention to financ- Masterwood Products LLC, which signs, with financing assistance process from outside the room. store. ing, service and parts as part of his provides millwork machines for from Ducati’s parent company, “That’s (why) you spend the “Obviously, we’re not happy to business model. Customer behav- cabinet making and carpentry. Audi AG, Knoll said. money on providing a comfortable see another (Ducati) dealer” so ior will determine what happens, His father and uncle own the Everything from floor tiling, of- and beautiful location,” he said. nearby, he said. “Ducati could and he’s banking on many cus- Heartland Harley-Davidson dealer- fice furnishings, lighting fixtures, “People ... talk about it more, and have a dealer in Grand Rapids ... tomers living nearby and prefer- ship in Burlington, Iowa. signs and cabinetry that are in- they want to be there more.” (or) Traverse City — that would ring his location to get bikes ser- Knoll said he had a minority in- stalled at Ducati’s dealerships in make sense. To put a dealer 30 viced. terest as a teenager in a power Italy are on their way to the U.S. minutes away makes no sense.” “There might not be enough vol- sports business in Illinois that sold via boat for the Birmingham site, At the starting line Leppan, 75, is well-known in mo- ume to have two (local) dealers in 2002. Eventually, he worked his Knoll said. That even includes the Competitor Leppan, owner of TT torcycle racing circles for holding that will provide the Ducati prod- way into upper management at his espresso machine and Italian cof- Motorcycles with his son Robert, the motorcycle land speed record uct line,” he said. family’s Harley-Davidson dealer- fee beans. said that while the overall market in the 1960s after reaching 245 mph Sherri Welch: (313) 446-1694, ship, while earning a bachelor’s The imported materials are for motorcycles is much bigger to- on his Triumph Streamliner. He [email protected]. Twitter: @sher- degree in automotive business geared to delivering the type of ex- day than it was in the 1950s, the still rides today. riwelch Water: Orr floats plan for authority ■ From Page 3

on debt in its own name. and benefit costs wouldn’t be borne Besides debt relief, a restructur- A MAWSA lease agreement for by suburban customers, he doesn’t ing of the water department is im- the department assets would be for like the proposed composition of portant because of an upcoming se- no more than 40 years and would the MAWSA board. ries of capital improvements that be extended as new MAWSA bonds Orr’s restructuring plan calls must be paid for; Orr’s latest re- are issued. MAWSA would pay a for the MAWSA board to be gov- port outlines about $1.2 billion in monthly payment in lieu of taxes erned and operated by a seven- capital improvements in the next to the city, or a monthly lease fee. member board of commissioners. four years. Financing those im- Specific terms are not yet known. More than half of the representa- provements has been hampered in Orr spokesman Bill Nowling said tion on that board would come part by the DWSD’s inability to re- in an interview Friday that only from the city of Detroit. ceive lower interest rates because preliminary meetings have been The council could appoint a cus- of its affiliation with Detroit, Orr’s held with Wayne, Oakland and Ma- tomer advocate annually for De- proposal says. comb counties. It’s not known troit retail customers. “Putting that system in the hands whether the other five counties Patterson said he believes the of somebody that can make the nec- with communities using the sys- authority should have more sub- essary improvements and maintain tem’s services would be included. urban representation and have to the system and generate some cash Transactions of the DWSD, re- approve everything unanimously. for the city is a good thing,” said moved from federal oversight by “We’d want to study the propos- Patrick O’Keefe, CEO of Bloomfield U.S. District Judge Sean Cox in al,” said June West, director of Hills-based turnaround consulting March, would have to be approved communications for Wayne Coun- firm O’Keefe LLC. by the city — effectively, Orr — ty Executive Robert Ficano. But Tia Lebherz, Michigan orga- and the participating communi- “We’ve looked at similar proposals nizer for the Food & Water Watch in ties, according to Orr’s restructur- before, and as always, the devil is Detroit, said the proposed authori- ing proposal. in the details.” ty is a “clear path to privatization” Suburban officials said Friday West added that, conceptually, and is a bad idea. the plan seems to make sense on Ficano has been supportive of sim- “This is something that needs to the surface, but details will need to ilar proposals to regionalize the be kept in public control,” she be negotiated. DWSD. said. “With something like the wa- “We are going to look at all the Macomb County Executive ter department, the cost of provid- numbers they have to make sure Mark Hackel said, “It’s better to ing water and sanitation services the numbers add up,” said Oak- look to see if it’s in our best inter- to people, the bottom line needs to land County Water Resources est to create a regional authority. be services and not profit.” Commissioner Jim Nash. “The is- “I don’t want it to go into the pri- Orr, who called the city’s fi- sue over the years is that we could- vate sector, and I don’t want to see nances “beyond dire” on Friday, n’t get good numbers from them. our rates go up.” said he expects to know within 30 We are very satisfied with the new Under the plan, DWSD employ- days whether he will have to take management there. I think things ees could become employees of the city through a Chapter 9 mu- are coming together well, and I feel MAWSA, but their pensions and nicipal bankruptcy. For more cov- really good about how it’s going to health care benefits would be sub- erage of the restructuring plan, see end up looking.” ject to the same modifications www.crainsdetroit.com/orr. Oakland County Executive L. adopted under Orr’s restructuring Kirk Pinho: (313) 446-0412, kpin- Brooks Patterson said that while he plan and would remain Detroit’s [email protected]. Twitter: @kirkpin- was pleased that the DWSD pension responsibility to pay. hoCDB 20130617-NEWS--0028-NAT-CCI-CD_-- 6/14/2013 6:21 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS June 17, 2013 MEDC: Renews its focus on hunting and attracting big business ■ From Page 1 nesses from other states and other to tell, she said. new foreign direct investment. ed. She also plans to attend the next design capabilities from around countries, President and CEO While the MEDC focused for the Some of the industries being tar- China summit this September. the country to Kalamazoo, where Michael Finney said. past few years on economic gar- geted globally are the same as Clover Adams was also on hand Newell Rubbermaid plans to build “We have way more opportuni- dening, Krauss said, the chamber those the team is looking at at- on an investment mission earlier a state-of-the-art design center and ties then we had in the past,” he and other regional groups were do- tracting from other states, but also this year to the Netherlands with create up to 100 design jobs. As said. ing the hunting, but the state was include alternative energy, food Lt. Gov. Brian Calley. part of the deal, MEDC offered a $2 That is because Michigan has always responsive when there was processing and medical devices. “We try to coordinate as much million business development per- become a business-friendly state interest from companies looking In terms of exports in the com- as possible when promoting ex- formance-based grant if it indeed in the past few years with scores of at coming to Michigan. So far this ing fiscal year, the exports and at- ports and investment back in creates that many jobs. regulations removed, the elimina- year, Krauss said, she has been on traction team is targeting $81.3 Michigan,” said Gordon Wenk, “We hope we get to a point tion of the Michigan Business Tax two trade missions to Europe and million in revenue, with the goal chief deputy director for the agri- where we have so many deals in and its surcharge, and the passage has had MEDC officials with her of getting to $500 million by 2017. culture department. the pipeline that we have to come of right-to-work and a new corpo- on both trips. The state ranks eighth national- Back at home, Finney said, the back to (the Legislature) and we rate income tax, he said. “Economic development is a ly for exports and 14th for foreign MEDC is comfortable with the need more money,” Finney said. Finney said the addition of at- team sport,” she said. direct investment. The goal is to tools it now has, including $170 Finney said he doesn’t antici- traction efforts will not diminish The MEDC has a list of about 100 move to seventh for exports and million for the coming fiscal year pate there being a time where the focus on economic gardening. prospects it is working on with the into the top 10 in foreign investment for gardening and attraction ef- Michigan can be completely out of “We are not taking anything hope that some will choose to lo- in the next five years. That would forts. The total includes incentives the incentive game, and lure com- away from our gardening efforts,” cate in Michigan, Finney said. mean adding another $6 billion in to encourage film production in panies to the state simply based on he said. “We’re actually enhancing About 25 percent of those exports and $378 million in foreign the state, as well as funding for its improved tax and regulatory and adding gardening resources. prospects come from overseas. investment, which the MEDC be- various incentive programs the climate. We’re just expanding our efforts to “We see some real opportunities lieves are attainable goals. MEDC can offer to companies con- Incentives that can provide go after some business attraction.” for foreign direct investment,” As part of the strategy, the sidering coming to Michigan in re- funding to help close a deal, or to Maureen Krauss, vice president Finney said. MEDC is leaning on the expertise turn for hitting targets on invest- provide funding when businesses for economic development at the He said that was not as easy to of the heads of other state departments and jobs created. meet targets will likely always be Detroit Regional Chamber, welcomes do previously because the MEDC ments when attending investment In March, the MEDC announced needed, Finney said. the move. did not have a comprehensive missions overseas. the expansion of Newell Rubbermaid “It’s a continuously moving tar- “It’s really a natural path for the strategy surrounding foreign in- Last year, when it was clear that in Kalamazoo, which came about get,” he said. “The very next day, MEDC to be focused on attraction vestment. agriculture would be a major topic after a number of site visits with other states or other countries will as the economy is coming back,” The organization has since of discussion during a trade mis- the company and a trip to Chicago modify their laws to be more com- she said. crafted a strategy that identifies sion to China with Snyder and the to make the pitch. petitive.” Since Snyder took office, the specific industries and countries MEDC, Jamie Clover Adams, direc- The result was that the Atlanta- Chris Gautz: (517) 403-4403, economy has changed for the bet- that could produce not only in- tor of the Department of Agriculture based company decided to consoli- [email protected]. Twitter: ter, and the state has a good story creased export activity, but lead to and Rural Development, also attend- date all of its product and graphic @chrisgautz

Webb: Revenue jumps with ‘smart cart,’ improved auto base ■ From Page 3

$100,000. modernizations. pa Electric, Nucor Corp. and Novi en- are helping to expand business for But in 2012, Daifuku Webb re- Daifuku Webb has nearly 2,000 gineering/construction manage- Daifuku Webb. The company be- ported revenue of $487.6 million, employees nationwide, of which ment company Patrick Engineering gan developing automated guided up from $364.9 million in 2011, and 380 are housed at the headquarters Inc. vehicles that move equipment Stewart expects the company this it shares with Jervis Webb in Like Stewart, Paisley said auto- along magnetic tape paths on the year will crest the half-billion Farmington Hills and about anoth- motive is seeing rapid growth as factory floors, over the last decade, mark. er 150 at northern Michigan plants light vehicle production grows — as part of the Harley-Davidson up- Some of the growth comes via in Boyne City and Harbor Springs. U.S. sales are projected to ap- grade. They’re also being used as acquisitions — Daifuku Webb in Other locations of the compa- proach 15 million in 2013, accord- part of a recent handling system late 2012 acquired Texas airport ny’s Jervis, Logan, Elite Line and ing to Southfield-based trade jour- installation for the warehousing equipment operations and mainte- Daifuku America Corp. subsidiaries nal Ward’s Automotive — but the operations of Macy’s Inc. in Califor- nance company Elite Line Services are in Ohio, South Carolina, Ari- market remains competitive as he nia. LLC from G&T Conveyor Co. Inc., and zona, Utah and Ontario. competes with companies like Friction drive systems, which reported its first full year of rev- Daifuku Webb has hired 100 em- Jervis Webb, Sterling Heights- use drive wheels instead of the enue from Logan Teleflex Inc., the ployees in Farmington Hills since based Fata Automation Inc. and oth- more traditional but noisier chain- U.S. portion of a company Daifuku early 2012, though that figure is a ers for each new automotive or- based conveyor system that has Co. acquired in 2011. mix of growth and turnover, and der. been a Webb product in factories But Stewart said only two Daifuku Webb has seven job open- The primarily automotive for decades, are growing in popu- months of Elite Line revenue was ings for engineers and program Michigan Group of Dearborn Mid- larity and are part of the SHAP reportable to Daifuku Webb for managers. West saw $105 million revenue in plant installation in Sterling 2012 and that Logan Teleflex is a “Sometimes when automotive 2012, up from $92 million in 2011, Heights, he said. small portion of the company’s to- has been in a growth mode, we and is projected to top $110 million Daifuku Co. acquired Jervis B. tal business. usually have some people we can this year. Paisley said orders for Webb in 2007. Stewart said the par- “So a lot of the growth (in 2012) bring over from airport and bag- mining and energy customers ent company received a $50,000 in- is organic. Our general view about gage handling,” Stewart said. have also been on a rebound after a vestment from Jervis C. Webb, son acquisitions is they offer a new “Then when that industry has new relative lull in the market about of the company’s founder, back in segment addition onto our larger orders of its own, we can bring five years ago. 1952 when Daifuku also reached a business and they are just that — over some of our automotive peo- “A lot of the growth is also in 50-year licensing deal that ran additions,” he said. ple. But when both industries are staying within the customer base through 2002. Daifuku grew that Most of a $60 million contract up at the same time, that’s when we have, but also offering new cus- relationship with Webb into a $40 that Jervis Webb landed with you need to hire another 100 peo- tomers within those markets,” he million-plus line of business with- Chrysler Group LLC to install an CHAD HALCOM/CDB ple like we’ve done.” said. “Prior to about two years ago, in the parent company. Brian Stewart, president, chairman inverted friction drive system at and CEO of Daifuku Webb Holding Co., Automotive is also driving some we never had in tooling, for exam- Stewart said the company’s mix the Chrysler Sterling Heights As- shows off the company’s automated growth at Taylor-based Dearborn ple, and we’ve done very well in of customers keeps it insulated but sembly Plant will be reported as guided vehicle, or “smart cart.” Mid-West Conveyor Co., where rev- some new business with that for not impervious to business cycles 2013 revenue, building on the enue reached $155 million in 2012 General Motors.” in different industries. growth trend. companies, retail and other non- compared with $110 million in Fata has completed some auto- “I’ve been in this business over Outside of automotive, Stewart automotive manufacturers. 2011, according to Michael Paisley, motive work in Mexico, is complet- 33 years, and I’ve never seen a estimates another 30 percent of The company just completed an controller of the company’s Michi- ing an installation for GM in downturn in (the economy) hap- revenue is in building and in- equipment upgrade for the Harley- gan Group. Wentzville, Mo., and hopes to land pen the same way twice,” he said. stalling airport conveyor and bag- Davidson Inc. plant in York, Pa., in Paisley estimates that sales are a new conveyance system job for “But if you are diversified and ser- gage handling systems (exclusive early 2012, and the Chrysler drive about a 70-30 percent mix of the au- the automaker at a paint shop in vice a number of industries, then of Elite Line, which handles opera- system should be finished by the tomotive industry and all other Fairfax, Va., said Fata sales direc- whenever a downturn does hap- tions and maintenance at air- end of this year. Stewart said the segments — the company’s Kansas tor Steve Weston. But that work is pen, you aren’t hit as hard by one ports), and the rest is a mix of cus- airport business segment has seen Group makes bulk handling con- also updates to existing plants, market.” tomers in other industries. some growth in recent years, both veyor systems for the mining and rather than automakers reopening Chad Halcom: (313) 446-6796, Examples include food and bever- because of new post-9/11 security energy industries and other manu- or building new ones, he said. [email protected]. Twitter: age, warehousing and logistics checkpoint measures and facility facturing customers, such as Tam- Stewart also said new products @chadhalcom 20130617-NEWS--0029-NAT-CCI-CD_-- 6/14/2013 5:52 PM Page 1

June 17, 2013 CRAIN’S DETROIT BUSINESS Page 29 Doner: Agency rebuilds after loss of Mazda account www.crainsdetroit.com ■ EDITOR-IN-CHIEF Keith E. Crain From Page 1 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Doner had had the Mazda work dated balance sheet on Dec. 31, ter its headquarters fire in the Grill and Wings, Kaplan University and ASSOCIATE PUBLISHER Marla Wise, (313) 446- since 1997, and it was about 20 per- 2012, were $220.5 million and $198.4 1990s. Pet Supplies Plus. 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- cent of its business. More than a million, respectively, MDC’s annu- Today, on the business rebuild- “That represents a lot of incre- 0460 or [email protected] hundred jobs were cut atop the lay- al filing said. ing side, DeMuth and Strasberg mental revenue,” DeMuth said, MANAGING EDITOR Jennette Smith, (313) 446- offs from a string of client losses MDC owns a slew of agencies, have positioned the agency to ser- 1622 or [email protected] without disclosing specifics. MANAGER, DIGITAL CONTENT STRATEGY Nancy the year before. headlined by Florida’s Crispin vice small local clients to global In addition to the new clients Hanus, (313) 446-1621 or [email protected] In fact, with internal manage- Porter + Bogusky, one of Ad Age’s marketers by employing a strategy DEPUTY MANAGING EDITOR Daniel Duggan, (313) and the automotive work, major 446-0414 or [email protected] ment issues in 2009, that time may “Agencies of the Decade” for the of being a one-stop shop. clients on the roster include ADT, SENIOR EDITOR/DESIGN Bob Allen, (313) 446- have been the most brutal span in 2000s and noted for its work for In addition to traditional cre- 0344 or [email protected] AutoTrader.com, Choice Hotels Inter- SENIOR EDITOR Gary Piatek, (313) 446-0357 or the company’s history, which Burger King and now Ann Arbor- ative ad work, Doner has its own national, Coca-Cola Co., The Coleman [email protected] dates back to Wilfred Broderick based Domino’s Inc. media planning and buying unit WEB EDITOR Kristin Bull, (313) 446-1608 or Co., Cox Communications, DuPont, [email protected] “Brod” Doner opening it as W.B. Strasberg came to Doner from along with online, mobile and so- Harman, Serta and Sherwin-Williams. WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- Doner & Co. in Detroit in 1937. Crispin Porter in 2008. cial media capabilities. “We think we offer a better expe- 8158 or [email protected] However, the tumultuous era ap- Being plugged into MDC’s net- Other services include anima- DATA EDITOR Brianna Reilly, (313) 446-0418, rience because of the diversity of [email protected] pears to have largely passed for work of agencies gives Doner a bet- tion and analytics. In the base- our portfolio,” DeMuth said. WEB PRODUCER Norman Witte III, (313) 446- what’s now known as Doner Partners ter profile within the industry, ac- ment, its “The Underground” is a 6059, [email protected] Doner targets potential clients EDITORIAL SUPPORT (313) 446-0419; YahNica LLC, and it is growing in some new cess to better talent, access to full-service audio and video post- of all sizes. Crawford, (313) 446-0329 segments, such as its digital unit. MDC’s new business pipeline and production operation. NEWSROOM (313) 446-0329, FAX (313) 446- “It’s as competitive as it gets. 1687 TIP LINE (313) 446-6766 The revenue lost from Mazda has — perhaps more importantly — ac- The media unit, which has 120 We’re competing with the big not only been replaced with money cess to capital, DeMuth said. staffers, did $750 million last year REPORTERS multinational agencies, little bou- from other clients, including retail “A lot of the logic that (deal) was in media buying for clients, De- Jay Greene, senior reporter: Covers health care, tique agencies, guys in their base- insurance, energy utilities and the environment. dealer campaigns and individual based on is coming to fruition,” Muth said. (313) 446-0325 or [email protected] ments,” DeMuth said. brand work for Chrysler Group LLC, DeMuth said. For example, an “It’s a real differentiator for the Amy Haimerl, entrepreneurship editor: Covers The agency is seeking more entrepreneurship, second-stage companies and Doner co-CEO David DeMuth said MDC office in Atlanta was re- agency,” he said. small business. (313) 446-0416 or the agency has hired 40 staffers this branded as a Doner unit. The digital unit — Strasberg clients in health and personal [email protected] year, with plans for more. DeMuth met MDC founder and calls it a “digital SWAT team” — care, he said. Its roster in that sec- Chad Halcom: Covers litigation, higher education, tor includes Ohio-based GOJO Indus- non-automotive manufacturing, defense “The creative opportunities CEO Miles Nadal in 2011 while creates apps, games and websites contracting and Oakland and Macomb counties. have grown since adding walking off a tennis court during a for clients. tries Inc.’s Purell hand sanitizer, (313) 446-6796 or [email protected] OhioHealth Tom Henderson: Covers banking, finance, Chrysler,” he said. “Chrysler has July 4 weekend family vacation in “It’s the fastest-growing part of the hospital system in technology and biotechnology. (313) 446-0337 or helped us get a lot better.” the Bahamas, and they got to talk- the agency,” DeMuth said. Most of Columbus and Troy-based [email protected] Kirk Pinho: Covers real estate and the city of How much Chrysler is spending ing. That led to the deal. Doner’s 40 recent hires were in the Geisinger Health System. Detroit. (313) 446-0412 or [email protected] with Doner wasn’t disclosed, but “We’re in a period of rebirth and digital unit. Its past work for Michigan- Bill Shea, enterprise editor: Covers media, advertising and marketing, the business of sports, DeMuth said the agency’s automo- renaissance here,” DeMuth said. based firms has included Little and transportation. (313) 446-1626 or tive work generates more revenue Caesar’s, La-Z-Boy, Highland Super- [email protected] Staying home Nathan Skid, multimedia editor: Also covers the than the Mazda account. Chrysler stores, ABC Warehouse and the food industry and entertainment. (313) 446-1654, Group spent a total of $1 billion on The nadir Under founder Brod Doner, who Michigan Lottery. Larger former [email protected] clients include British Petroleum, Dustin Walsh: Covers the business of law, auto advertising in 2012, according to DeMuth, a 24-year Doner veter- died at age 75 in 1990, the agency suppliers and steel. (313) 446-6042 or estimates from Kantar Media Inc. an, became the agency’s president churned out the famous cam- Arby’s, Lowe’s Home Improvement [email protected] and Iams. Sherri Welch: Covers nonprofits, services, retail That’s a drop from 2011’s $1.2 bil- in 2010. paigns that are now history dis- and hospitality. (313) 446-1694 or lion in spending. He and Strasberg, along with se- plays on the basement walls. It “They’re absolutely, I’d say in [email protected] nior partner Tim Blett, became the also eventually grew to 11 offices, terms of client diversity, the fur- LANSING BUREAU Chris Gautz: Covers business issues at the Capitol majority owners when CEO Alan several of which have closed. thest ahead of any advertising and utilities. (517) 403-4403 or [email protected] The bottom line Kalter announced in December Doner shuttered its Baltimore agency in Detroit,” said Tim ADVERTISING Because of client losses and re- 2009 that he was retiring after 43 office, which opened in 1955 and Smith, president and CEO of De- SALES INQUIRIES (313) 446-6052; FAX (313) 393-0997 duced ad spending, Doner has bled years with Doner. grew to become a competitive rival troit-based Skidmore Studio. SALES MANAGER Tammy Rokowski revenue in recent years, according Blett, who spent 25 years at the to the Detroit office, in August 2003 Skidmore has done contract SENIOR ACCOUNT EXECUTIVE: Matthew J. to estimates from Crain’s sibling agency, then sold his 30 percent as work dwindled. work for Doner for several decades Langan ADVERTISING SALES Christine Galasso, Jeff publication Advertising Age, but share of the firm to DeMuth and The agency moved into its cur- and provided space for 40 Doner Lasser, Dale Smolinski, Sarah Stachowicz DeMuth said revenue is predicted Strasberg in June 2011. rent location in October 1988, and staffers after the fire when Skid- CLASSIFIED SALES Angela Schutte, manager, to grow this year. Kalter’s exit came amid legal is- it became the lone headquarters in more was still in Royal Oak. (313)-446-0351 Ad Age ranked Doner as the na- sues over pension fund problems. 1998. That was after the 22-month EVENTS DIRECTOR Nicole LaPointe Skidmore’s work for Doner usu- DIRECTOR, INTEGRATED MARKETING Eric Cedo tion’s 103rd-largest agency by rev- He admitted Doner wasn’t in com- rebuild from the fire, and the really is on non-automotive ac- SALES PROMOTION MANAGER Karin Pitrone enue at $90 million in 2012. DeMuth pliance with federal disclosure construction included the addition counts, Smith said, such as for ASSISTANT EVENTS MANAGER Kacey Anderson estimated the agency will finish 7 laws and regulations, which of a third floor. baked beans giant Bush Brothers & SENIOR PRODUCER FOR DIGITAL/ONLINE percent ahead of that this year. prompted longtime executive H. DeMuth said he looked at possi- PRODUCTS Pierrette Dagg Co., which Doner landed in 1997. MARKETING ARTIST Sylvia Kolaski In 2011, the trade magazine Barry Levine to quit. bly moving Doner back to down- Ad industry rivals have noticed SALES SUPPORT Suzanne Janik, YahNica Crawford ranked Doner 82nd with $101 mil- Amid that tumult, Doner Vice town Detroit, but instead opted to Doner’s rebuilding efforts, too. PRODUCTION MANAGER Wendy Kobylarz lion in revenue, and in 2010 it was President John DeCerchio sued stay in the building off Northwest- “Doner has always been a differ- CUSTOMER SERVICE 47th with $142 million in revenue. the firm in a dispute over the size ern Highway. ent sort of animal. I’m not surprised PRODUCTION SUPERVISOR Larry Williams To bolster the bottom line, De- of his 32 percent equity stake pay- He renewed the agency’s lease in that they’ve come out on top; there’s MAIN NUMBER: Call (877) 824-9374 or write Muth and co-CEO Rob Strasberg out for exiting Doner. 2010 for another 10 years, and Doner [email protected] a scary and serious nonstop work SUBSCRIPTIONS $59 one year, $98 two years. struck a deal last year to sell a mi- DeCerchio said he was owed $55 took two floors of a neighboring ethic embedded deep in their DNA,” Out of state, $79 one year, $138 for two years. nority share of the agency to an ad- million over a decade; the agency building. It also took over the base- Outside U.S.A., add $48 per year to out-of-state said Toby Barlow, chief creative of- rate for surface mail. Call (313) 446-0450 or vertising holding company. Toron- said he was owed $51.5 million. Lit- ment space and turned it into its dig- ficer at Dearborn-based Team Detroit, (877) 824-9374. SINGLE COPIES: (877) 824-9374 to-based MDC Partners Inc. igation has since been settled. ital operation, along with a café and which handles advertising for Ford (NASDAQ: MDCA) bought a 30 “These weren’t easy issues to outdoor recreational space. REPRINTS: (800) 290-5460, ext. 125; Motor Co. (717) 505-9701, ext. 125; or lindsay.wilson percent ownership stake in Doner navigate, but we got through The offices and cubicles are dec- @theygsgroup.com Auto marketing insiders were in March 2012. them,” DeMuth said. orated dorm-like with the stereo- TO FIND A DATE A STORY WAS PUBLISHED: impressed with Doner’s work for (313) 446-0406 or e-mail [email protected] Details of the deal have not been Rank and file was affected by typical creative flair found at most Mazda, but were not surprised the disclosed, but according to MDC’s events, too. ad agencies, but in addition to the CRAIN’S DETROIT BUSINESS IS PUBLISHED BY automaker switched agencies. CRAIN COMMUNICATIONS INC. 2012 annual report, it has an op- At one point, Doner eliminated ubiquitous foosball table is a mini CHAIRMAN Keith E. Crain “The ‘Zoom Zoom’ tagline was tion to take up to a 70 percent stake about 12 percent of the entire staff, tennis court made from tape on the PRESIDENT Rance Crain wonderful, but I think they went TREASURER Mary Kay Crain in Doner this year and 100 percent about 100 people. That came after carpet, and a “unicorn sanctuary” Executive Vice President/Operations ownership in 2017. losses that included Expedia.com, cubicle that includes a full-sized with a different shop that had William A. Morrow more capability beyond the U.S. Vice President/Production & Manufacturing The New York Times, at the time Blockbuster, Hotels.com, La-Z-Boy mythical horned equine wearing a Dave Kamis of the transaction, estimated the 30 Inc., Outback Steakhouse, Six Flags sombrero. That wasn’t Doner’s forté,” said Vice President/Chief Information Officer Peter DeLorenzo, former longtime Paul Dalpiaz percent stake at $15 million to $20 Inc. and Sylvan Learning Centers. One cubicle is home to a reclin- Vice President/Chief Human Resources Officer million. MDC reportedly usually Today, the agency employs er. Another has a samurai sword auto ad exec and creator and pub- Margee Kaczmarek takes a majority interest in agen- about 600 people, around 500 of on display. Inflatable creatures lisher of the autoextremist.com au- G.D. Crain Jr. Founder (1885-1973) cies (total ownership for some), them in Southfield. The others are and objects festoon the place. tomotive industry blog. Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: making the Doner deal rare among in offices in Cleveland, London, “We’ve tried to make the culture DeLorenzo predicts Doner’s sub- 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 its roster of about 50 firms. Atlanta and Newport Beach, Calif. here more fun,” DeMuth said. sequent revitalization effort will Cable address: TWX 248-221-5122 AUTNEW DET At $1 billion in global revenue in Doner was the nation’s largest in- pay off. CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is “They had a lot of turmoil. They published weekly, except for a special issue the third 2012, MDC is the ninth-largest ad dependent, based on estimated U.S. week of August, and no issue the third week of holding company in the world by revenue, as recently as 2008. As part Looking ahead needed to stabilize themselves in- December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals that metric, according to Advertis- of MDC, the firm is no longer con- Doner boasts of adding a slew of ternally as a company. I think postage paid at Detroit, MI and additional mailing ing Age’s annual Agency Report. sidered an independent shop. clients in the past six months: they’re going to be much better offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, Circulation MDC’s domestic revenue last year O’Charley’s, Smithfield, Art Van, Tuffy now,” he said. Department, P.O. Box 07925, Detroit, MI 48207- was $868 million. Auto Service Centers, Marie Bill Shea: (313) 446-1626, 9732. GST # 136760444. Printed in U.S.A. The strategies Entire contents copyright 2013 by Crain Doner’s total assets and total lia- Callender, First Energy Solutions, [email protected]. Twitter: Communications Inc. All rights reserved. bilities on the company’s consoli- Doner literally rebuilt itself af- Minute Maid, Manheim, Hurricane @bill_shea19 Reproduction or use of editorial content in any manner without permission is strictly prohibited. 20130617-NEWS--0030-NAT-CCI-CD_-- 6/14/2013 5:53 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS June 17, 2013 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF JUNE 8-14

according to information from Bloomberg. Appeals court CRAIN’S CFO OF THE YEAR AWARDS Blackstone Group owns Mum’s the word the building, with securi- tized debt serviced by Wells to handle Duggan Fargo Bank. appeal today on departure of Detroit PR guru Bailey he Michigan Court of authors advice book Appeals said Friday it John Bailey, a prominent T will take up today an OU prez, wife appeal by Mike Duggan on metro Detroit public relations figure for more than the question of residency ost embers of the had wanted to spend some 40 years, has published a and whether Duggan’s name board of trustees at time with family. He said book about his career and should remain on the Aug. 6 M Oakland University ‘I’ll work with you’ about offers tips about business Detroit mayoral primary aren’t talking about Presi- the transition to a succes- and career success. ballot. Wayne County Circuit dent Gary Russi’s retirement sor, and it turns out we had The Power of Ownership: Court Judge Lita Popke ruled or the university’s decision someone in mind who is in- Roughly 250 people turned out for the Crain’s CFO of the How to Build a Career and last week that Duggan, the Year awards event at the Roostertail in Detroit on Thursday house.” to fire his wife, Beckie Fran- a Business is available on former Detroit Medical Center to honor the 2013 winners. cis, the women’s basketball Associate Vice President Amazon.com, where it re- CEO, is ineligible to be on Speakers highlighted the sometimes-tense relationship for Outreach Betty Young- coach. And there looks to tails for $13.09. On Friday, the ballot because he filed as between executives at public companies and the analysts who be a reason for that. blood will become interim it ranked No. 36 in Amazon a candidate less than one cover them. Speaking on that topic were (from left) Lisa A source who asked not president as the university sales for books on business year from when he became a Payne, vice chairman and CFO of Taubman Centers Inc.; Samit to be identi- searches for a successor. ethics. registered Detroit voter. Parikh, analyst, ISI Group; and David Provost, chairman, fied told Kramer said the firing of The book is published Also last week, candidate president and CEO of Talmer Bank and Trust. Also on the panel (not pictured) was Terry McEvoy, managing director and senior Crain’s that Francis by Director of Ath- through CreateSpace, Ama- Tom Barrow, who filed the analyst at Oppenheimer & Co. all of the letics Tracy Huth was an ad- zon’s self-publishing unit. original lawsuit asking for KPMG was the title sponsor of the event, held in partnership board mem- ministrative decision the Fifty of those pages are de- Duggan to be removed from bers have board was not involved in. the ballot, asked the Michi- with the Michigan Association of Certified Public Accountants voted to the history of per- and the Detroit chapter of Financial Executives International. entered haps Bailey’s biggest client, gan Supreme Court to imme- into a Stroh Brewing Co. diately step in and decide “nondispar- Will Southfield Town Bailey worked for sever- whether Duggan should be ing center to supply compo- 20 past candidates in con- agement Russi Center go up for sale? al local PR agencies before on the ballot. nents for the F-35 Joint tention for the Detroit agreement” Speculation in the real founding John Bailey & Asso- Strike Fighter. emergency manager posi- not to share any details estate community points to ciates Public Relations Inc. in Ⅲ Shareholders of War- tion filled by Kevyn Orr, Ing- about the circumstances ON THE MOVE a possible sale of the land- 1996. Grand Rapids-based ren-based Asset Acceptance ham County Circuit Judge surrounding Russi’s depar- mark Southfield Town Center Lambert Edwards & Associates Ⅲ University of Michigan As- Capital Corp. approved the William Collette ruled. ture, which became public office complex. bought Bailey’s firm in 2009 sociate Professor Betsey sale of the company to San Ⅲ The Detroit riverfront a few hours before an an- While people with knowl- and the agencies main- Stevenson was named to the Diego-based Encore Capital has seen more than $1 bil- nouncement that Francis edge of the situation say it is tained their names until Council of Economic Advisers Group Inc., another collec- lion in public and private had been fired. not for sale, requests have Bailey’s office took the Lam- by President Barack Obama. tor of consumer debt, for investment over the past Board members Richard been made by the building’s bert Edwards name in 2010. Stevenson, 42, works at the $200 million. decade, said a study com- Flynn, Scott Kunselman and ownership to have it valued Bailey was inducted into Gerald R. Ford School of Public Ⅲ Federal-Mogul Corp. is missioned by the Detroit Dennis Pawley refused to dis- the Public Relations Society Policy but will take a leave to seeking $3.05 billion of debt Riverfront Conservancy. cuss the matter last week, — a move that sometimes of Detroit’s Hall of Fame in serve on the council. to refinance, the Southfield Ⅲ The U.S. Securities and each deferring comment to precedes a sale. 2006. Ⅲ George Lenyo, 40, will auto parts supplier said in Exchange Commission Michael Kramer, partner at Fueling the rumors is the fact that the five-building become managing partner a regulatory filing. charged Chauncey Mayfield, Dickinson Wright PLLC and of the Detroit office of ac- Ⅲ OU board chairman. complex is likely to default Ralph Thayer Hyundai is founder, president and CEO on its $235 million loan, BITS & PIECES counting firm Ernst & Young investing about $2 million of MayfieldGentry Realty Advi- Kramer said only that LLP effective July 1. Jeff Russi, 67, the university’s sources familiar with the Ⅲ Macomb Community Col- to renovate a former Mit- sors LLC, with theft for al- Bergeron, 59, is retiring as president since 1995, made building said. The default lege President James Jacobs subishi dealership in Livo- legedly stealing $3.1 million managing partner. an “independent decision” would be based on the type is the winner of the 2013 nia and open it by mid-July. from theDetroit Police and Ⅲ The Detroit Pistons to retire effective Aug. 1 of loan used for the build- Mariam C. Noland Award Ⅲ The 37 Citizens Bank Fire Retirement System. hired Maurice “Mo” Cheeks, and that his decision was ing — in which the balance for Nonprofit Leadership branches in Southeast Ⅲ Davide Marchetti and 56, as the National Basketball not made at the board’s re- must be paid off at a certain presented by the Community Michigan and 156 Erin Pellegrino of Rome, Association team’s 29th head quest. Russi’s employment date or else the lender can Foundation for Southeast statewide were rebranded Italy, took first place in the coach. The contract was re- contract was due to expire auction the property or Michigan. The award recog- as FirstMerit Bank branches, Rock Ventures LLC-spon- ported as a three-year deal this month. take possession of it. nizes a nonprofit president reflecting new ownership. sored “Redesigning De- with an option for a fourth. “The truth is I don’t The five properties were or CEO whose service ex- Ⅲ Southfield-based Amer- troit: A New Vision for an Cheeks replaces the fired know” his reasons, Kramer bought in 1999 for $270 mil- emplifies the importance of ican Fellowship Mutual Insur- Iconic Site” competition Lawrence Frank, 42. said. “He only mentioned at lion, according to Washing- leadership to his or her or- ance Co. was ordered into for their design for the for- (a recent) meeting that he ton, D.C.-based CoStar Group ganization and the nonprof- liquidation in Ingham Coun- mer J.L. Hudson Co. depart- wants to retire, he’s been Inc. Its May 2012 valuation, it community. For details, COMPANY NEWS ty Circuit Court at the re- ment store site. doing this a long time and however, is $180 million, visit cfsem.org. quest of the state Depart- Ⅲ The Michigan House ap- Ⅲ General Motors Co. an- ment of Insurance and proved a bill to expand Med- nounced it will shift its Cadil- Financial Services. icaid in the state to an esti- lac advertising to a consor- mated 400,000 individuals. tium of three sibling Ⅲ Gov. Rick Snyder marketing agencies called OTHER NEWS signed a nearly $49 billion Rogue that includes Warren- Ⅲ Attorney General Bill state budget. BEST FROM THE BLOGS based Campbell Ewald, which Schuette issued a formal will manage the account. opinion on the status of the READ THESE POSTS AND MORE AT WWW.CRAINSDETROIT.COM/BLOGS Ⅲ Rock Gaming LLC’s art collection at the Detroit OBITUARIES Athens Acquisition LLC sub- Institute of Arts, saying it Ⅲ Hortensia Albertini, Union Joints rolls into DTE menu DIA unveils ‘cultural living room’ sidiary got approval from cannot be sold to satisfy the founder and president of the Michigan Gaming Control city’s debts or obligations. Global LT, a Troy-based lan- The concessions at A big part of turning Board for two deals that The Michigan Senate last guage and cultural training DTE“ Energy Music around“ Detroit is making give it and its chairman, week approved legislation company, died June 11. She Theatre in Clarkston just it a place people want to Dan Gilbert, 97.2 percent aimed at protecting the art. was 65. got a lot more hang out. Ⅲ Ⅲ interesting —and, quite ownership in Greektown The Michigan Economic Arthur Ellis, former pres- frankly, a whole lot ” Casino-Hotel. Development Corp. made a $1 ident of Central Michigan Uni- better. Ⅲ Livonia-based Phillips million grant to Eastern Mar- versity and Michigan super- Service Industries Inc. could ket Corp. to support a new intendent of schools, died ” invest at least $10 million community kitchen and June 14. He was 80. and create 100 to 200 local renovation of one of the Ⅲ Harry Herkowitz, M.D., jobs if the region can out- sheds at the Detroit market. chairman of orthopedic Nathan Skid’s “Table Talk” blog on Detroit-area Sherri Welch’s blog on “The Business of Being perform at least four other Ⅲ Rich Baird, an adviser surgery at Beaumont restaurants is at www.crainsdetroit.com/skid Nonprofit” is at www.crainsdetroit.com/welch states competing for a pro- to Gov. Rick Snyder, must Hospital, Royal Oak, died posed additive manufactur- furnish the names of up to June 10. He was 65. DBpageAD_DBpageAD.qxd 6/12/2013 9:30 AM Page 1

THEIR STORY INVOLVES PRESSES, PLATES AND 18 WHEELS OF GLORY. WHAT’S YOURS?

Detroit Radiator has been helping America keep on truckin’ for over 75 years. Since 1936, they’ve been providing big rigs with some of the best and most advanced after-market radiators and air-cooling systems you can get. As trucks have changed, Detroit Radiator has changed with them, using the latest technology and always staying curious. At Fifth Third Bank, we’ve stayed curious right along with them, listening, understanding and helping Detroit Radiator keep moving forward.

Learn more about Detroit Radiator’s curious business and share your own story at 53.com/curiosityatwork.

Fifth Third Bank. Member FDIC. DBpageAD_DBpageAD.qxd 6/6/2013 5:27 PM Page 1

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