Immigration Dissection

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www.crainsdetroit.com Vol. 30, No. 47 NOVEMBER 24 – 30, 2014 $2 a copy; $59 a year

Page 3 WSU doc group shake-up reveals philosophical split Immigration dissection Kevin Adell buys Farmington expedites the process for skilled radio station for $3 million Experts: Parts of Obama plan good for workers to gain status in the U.S.” In a speech to the nation Thurs- Salary survey points to day night, President Obama said he return of retention bonus business; may fall short for tech workers would issue an executive order that allows qualified undocumented im- BY BILL SHEA neurs to more migrants a renewable three-year le- Finance AND DUSTIN WALSH easily establish gal status. The plan allows them to CRAIN’S DETROIT BUSINESS businesses in apply for work permits as long as the U.S.,” said they meet government-set criteria, President Obama’s temporary University of De- have no criminal record, provide deportation relief plan for about 5 troit Mercy personal data, and pay a nearly $500 million undocumented immi- School of Law fee. grants includes elements that have Professor David The president also said other la- some local business executives Koelsch, who bor-related immigration issues and immigration experts hailing also is director IMMIGRATION ISSUES HIT HOME Chase Bank program opens would be tackled, such as modern- the coming changes as an econom- of the law Koelsch izing the green card system and ex- Michigan’s plan: Obama move door for Detroiters, Page 11 ic positive for metro Detroit. school’s Im- unlikely to affect Snyder’s strategy, migration Law Clinic and the Asy- tending certain employment pro- Page 24 “Taking executive action does grams for international students This Just In not just bring certain undocument- lum Law Clinic. Detroit’s open door: As Washington “It allows foreign STEM gradu- in high-tech fields. debates, immigrants bolster the ed immigrants into the main- Motor City, Page 25 Shinola to open watch dial stream, it also allows entrepre- ates to put down roots here, and it See Immigration, Page 24 factory in Detroit Shinola/Detroit LLC is opening a new watch dial factory in Detroit, allowing it to bring more manufacturing back to the city. Compuware HQ sale: Officials: Bankruptcy Currently the luxury goods company, which is known for watches, bicycles and leather goods, purchases its dials How, why deal went down from Taiwan-based BAT Ltd. fees unlikely to fall Now it has hired the firm to he Compuware building is getting new owners as train a team of 14 to manufacture watch dials. The factory Dan Gilbert and Meridian Health finalize a deal to will encompass 2,000 square buy the office tower for $142 million and invest Duggan fears feet inside the company’s T $24 million in upgrades. The deal gives Meridian room to flagship retail store in Mid- town. To accommodate the grow, Gilbert space to call his own and the building off possibility of MANUEL MARTINEZ growth, Shinola plans to ex- Compuware’s books. Read the back story | PAGE 26 pand the shop in 2015. more increases The factory will open in two phases, with the first starting BY CHAD HALCOM this month. Staff will learn to CRAIN’S DETROIT BUSINESS print the watch face for the Runwell model, the compa- About 80 percent of the $146 mil- ny’s best-selling model. In lion in professional services fees January they’ll learn metal- that a Detroit bankruptcy court FEE ENTERPRISE stamping and dial painting. mediator will review next week are already paid, and officials said Meet the man who will help “Our long-term goal is to decide how much lawyers, create Shinola watches that odds are long that mediation will reduce the balance very much. auditors and the like will be are predominantly American PAGE 22 made,” said Heath Carr, CEO Detroit Mayor Mike Duggan has paid, of Dallas-based Bedrock Manu- voiced concern that legal and other Also: Consultants’ expense facturing, which owns Shinola. professional fees since the city reports test official scrutiny, “This development also gives filed for bankruptcy have climbed PAGE 23 Shinola the opportunity to be by millions in recent months and part of workforce develop- could climb tens of millions more. fee negotiated into an amended ment in the local communi- But other officials and attorneys contract the firm signed with the ty.” Earlier this year, Shinola said that is unlikely, since most city in June. opened a 12,000-square-foot major disputes are resolved. Miller Buckfire, which aided leather-goods factory to pro- The tally did climb another $18 Detroit on financial restructuring duce small leather goods and million earlier this month with a matters, including lining up exit straps for its watches. Shinola new, but expected, charge from in- financing from Barclays plc and employs 320 people. vestment banking consultant Miller bonds to refinance some previous — Amy Haimerl Buckfire & Co. for a restructuring See Bankruptcy, Page 22 DAVID HALL

Dec. 3 • Noon - 1 p.m.

Page 2 CRAIN’S DETROIT BUSINESS November 24, 2014

MICHIGAN BRIEFS Growers up a tree, thanks to said it agreed to purchase West Michigan Savings Bank, the Grand Christmasy snow that came early Kellogg offers $127M for Egypt confectionery maker Rapids Business Journal reported. That it began to look a lot like The combined company would Christmas this past week was a Kellogg Co., the Battle Creek-based producer of consumer goods industry trade on “very rich valua- have 12 branches and about $353 source of considerable consterna- breakfast cereals and snack foods, offered $127 mil- tions” and have achieved significant growth “irre- million in assets, $255 million in tion to a group who you’d think lion to buy Egyptian confectionery maker Bisco spective of the political or economic situation of the loans and $271 million in deposits. would be happy that this is the sea- Misr, topping a $119 million bid by the Abraaj Group, country,” said Wael Ziada, head of research at Cairo- Ⅲ The UFP Western Division of son when people write “’tis” in- Bloomberg News reported. based investment bank EFG-Hermes Holding SAE. Grand Rapids-based Universal For- stead of “it is.” We’re speaking Kellogg offered the equivalent of $11.05 a share, ac- Bisco, which has turned down two other offers, est Products Inc. acquired “certain about Michigan’s Christmas tree cording to a statement from the Egyptian Financial Su- owns three factories, where it produces the biscuit assets” of Bigs Packaging and Lum- growers, who are struggling to pervisory Authority. Egypt is seeing a pickup in merger Luxe and a variety of cakes and wafers. Similar to ber, a Texas-based maker of indus- harvest and ship their final orders. and acquisition activity amid increasing political Abraaj’s offer, Kellogg’s is subject to the acquisition trial wood and packaging products, Ken Wahmhoff of Wahmhoff stability. Egyptian companies in the fast-moving of a minimum 51 percent of Bisco’s shares. the Grand Rapids Business Journal Farms Nursery in Southwest Michi- reported. Bigs generated sales of about $50 million in the past year. gan’s Van Buren County told An audit found 37 store owners for 2015. Among them: Denice Journal reported. The project MLive.com that employees were Ⅲ The East Lansing-based who turned in winning tickets LeVasseur, president of the South- would include a five-story office Michigan State University Federal working in more than a foot of worth nearly $3.6 million in 2012 field-based law firm LeVasseur & building and four-story parking snow, hampering their ability to Credit Union plans to double the and 2013. One retailer collected 107 LeVasseur PC, elected chairman of ramp with ground-floor retail size of its headquarters with a get outside and harvest. Some tree prizes worth $346,312 last year. Six the board. Mark Davidoff, manag- space. Sparrow spokeswoman growers farther inland, in Cadillac new $46 million building, the store owners didn’t report $509,211 ing partner at Deloitte LLP in Detroit, Sacha Crowley said the project is Lansing State Journal reported. and Lake City, weren’t as affected in lottery winnings on their 2012 was re-elected board treasurer. expected to cost tens of millions of by the weather, said Marsha Gray, The credit union has more than tax forms. No stores were named Ⅲ Tom Mee, COO of McLaren- dollars and could start next year. 600 employees and predicts that director of the Michigan Christmas in the report. Greater Lansing hospital since 2013, Ⅲ New figures show that the Tree Association. Michigan harvests will grow to 724 by 2017 and more Officials of the Michigan Office of is the new president and CEO, the Flint Community Schools’ deficit has than 1,000 by 2024. about 3 million trees each year, the Auditor General said 13 retailers Lansing State Journal reported. grown to $21.9 million, The Flint ranking third in the nation for were disciplined. He replaces Rick Wright, who offi- Journal reported. In June, the dis- Find business news from Christmas tree production. cials said resigned “to pursue oth- trict learned its deficit had nearly around the state at crainsdetroit er opportunities” after nearly doubled to $20.4 million. .com/crainsmichiganbusiness. Audit: Lottery winners who want MICH-CELLANEOUS three years in the job. Officials for Ⅲ Sturgis Bancorp, the parent Sign up for the Crain’s Michi- Ⅲ Come 2016, Dallas will have its the hospital, owned by Flint-based company of Sturgis Bank & Trust Co. gan Morning e-newsletter at anonymity sell tickets to stores own version of the ArtPrize interna- McLaren Health Care Corp., did not near Michigan’s southern border, crainsdetroit.com/emailsignup. Some stores that sell lottery tional art competition, which was elaborate. Mee started his career tickets are hitting the jackpot by born in Grand Rapids in 2009. A as an emergency nurse at William buying winning tickets at a dis- newly founded nonprofit reached a Beaumont Hospital in Royal Oak. CORRECTION count from players who owe back three-year charter agreement with Ⅲ Lansing-based Sparrow Health taxes or other debts and don’t want ArtPrize officials in Grand Rapids. System plans to build a new cancer Ⅲ A photo caption on Page 37 of the Nov. 17 issue should have said the the state to learn their identity, Ⅲ The Michigan Chamber of Com- center on the site of a former ele- SET Enterprises plant pictured is in New Boston. An information box The Associated Press reported. merce last week elected new officers mentary school, the Lansing State on the same page should have said the title for Sid Taylor is chairman.

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November 24, 2014 CRAIN’S DETROIT BUSINESS Page 3 WSU looks for Rx for doc group Inside

An effort to evaluate some quarters. We have an oppor- Consultant the relationship tunity to look at all these things” between WSU and with the ECG study. its physician group Wilson said Parisi did not char- hired to evalute comes amid the acterize Frank’s departure as a fir- firing of Robert ing, “just a parting of the ways” and Frank (right) by that he did not know about it in ad- Valeri Paris. relationship vance. President Wilson BY JAY GREENE says they’re UPG is an independent 501(c)(3), CRAIN’S DETROIT BUSINESS unrelated. but the medical school dean serves as the chairman of its board and The sudden involuntary depar- fired Robert Frank for unspecified more closely affiliated faculty hires and fires the practice group’s Small biz has more health ture of Wayne State University Physi- reasons. Both Frank and Parisi de- practice plan. CEO, who also serves as a vice cian Group’s CEO last week reveals clined to comment for this story. WSU President M. Roy Wilson dean in the medical school. insurance choices, Page 6 philosophical differences in how But Crain’s has learned the uni- said the firing had nothing to do independent the group and the university has hired ECG Management with the study, but “I think there ‘Feathers were ruffled’ versity should be from each other. Consultants to evaluate best prac- is a general perception that UPG is On Nov. 17, four days before step- tices and suggest more effective not as tied into the university and Sources told Crain’s that Frank Company index ping down as dean of the Wayne ways the 2,000-physician UPG can medical school as would be appro- State Medical School, Valerie Parisi interact with the university as a priate. There is frustration in See WSU, Page 21 These companies have significant mention in this week’s Crain’s Detroit Business: A2B Bikeshare ...... 15 AdAdapted ...... 15 Adell Broadcasting ...... 26 Axis Advisors ...... 26 Adell to buy Bedrock Real Estate Services ...... 26 Blue Cross Blue Shield of Michigan ...... 6 Cambridge Consulting Group ...... 6 Firms tell talent: Capital Impact Partners ...... 12 Radio Disney Chaldean American Chamber of Commerce ...... 25 Compuware ...... 26 Denovo Sciences ...... 15 Detroit Land Bank ...... 11 station, expand Detroit Regional Chamber ...... 24 Diebold Insurance Agency ...... 7 You stay, we’ll pay Donnelly Penman & Partners ...... 14 Farbman Group ...... 26 Word’s reach Fragomen, Del Rey, Bernsen & Loewy ...... 24 Gas Station TV ...... 25 BY BILL SHEA Global Detroit ...... 24, 25 CRAIN’S DETROIT BUSINESS ASE study: As economy improves, so do bonuses, other perks Health Alliance Plan ...... 6 HealthPlus of Michigan ...... 7 As he prepares to exit the terres- BY AMY HAIMERL cently implemented a weekly bonus structure for its Invest Detroit ...... 12 Invest Michigan ...... 15 trial television industry, local CRAIN’S DETROIT BUSINESS seven-member team. broadcaster Kevin Adell is expand- “They are very happy,” said Matthew Wolf, who J.P. Morgan Chase ...... 11 K9 Kindergarten ...... 13 ing the reach of his satellite reli- ichigan’s economy has been growing steadi- opened the agency with his partner, Steve Iuppen- Level One Bancorp ...... 5 gious network by adding another ly for the past five years and is expected to latz, last year. “We had been talking about it for a local radio station. keep up the pace in the coming years. And Lotus Bancorp ...... 5 M few weeks. It’s fun. They have a carrot every week Meridian Health ...... 26 Adell is paying The Walt Disney with that growth comes a new — but enviable — to shoot for. Michigan Economic Development ...... 4 Co.’s Burbank, Calif.-based Disney challenge for employers: retaining top talent. “It’s important to retain talent and motivate Michigan Sports Hall of Fame ...... 23 Radio a reported “As the economy continues to improve, the job them. I’m a member of the Entrepreneurs Miller Buckfire ...... 1 $3 million for its market is also heating up, making it potentially Organization, and they always promote that, so we Oakland Community College ...... 4 WFDF AM 910, more difficult to retain top employees who may wanted to implement it.” Office for New Americans ...... 24, 25 which is li- have previously stayed due to fewer competitive op- The second most common strategy among compa- PNC Bank ...... 14 censed by the portunities,” said Mary Corrado, Priority Health ...... 6 Rapid Advance ...... 13 Federal Communi- president and CEO of the Ameri- See Survey, Page 25 cations Commis- can Society of Employers. Retail Capital ...... 13 Rockbridge Growth Equity ...... 13 sion to Farming- To combat the problem, many Spickler Wealth Management Group ...... 11 ton Hills. Michigan companies are doling STEC USA ...... 4 The 50,000- out annual bonuses to executives Summit Commercial ...... 26 watt station, as well as hourly workers, ac- Talmer Bancorp ...... 14 Adell which airs pre- cording to a recent survey of Tanner Friedman ...... 3 teen-oriented Disney music and more than 200 of the Tetra Discovery Partners ...... 15 programming, has offices in South- state’s employers by University of Detroit Mercy ...... 1 field and a group of relatively new Southfield-based Vanguard Community Development ...... 12 transmitters in Monroe County. Corrado ASE. The WADL TV-38 ...... 26 WFDF AM 910 ...... 3 The station’s wide reach will al- number of firms offering Wayne State University ...... 3 low Adell’s Southfield-based The bonuses to executives Wayne State University Physician Group ...... 3 Word Network to simulcast its reli- is fairly flat, but Wolf-Chandler Agency ...... 3 gious content, or to air radio-spe- there is growth in Word Network ...... 3 cific content, throughout much of the number of com- Southeast and central Michigan. panies using Adell’s office said he cannot bonuses to keep SURVEY FINDINGS Department index comment because the WFDF trans- salaried employees. action has not yet closed. “These strategies Overall, the survey found: BANKRUPTCIES ...... 4 Broadcast industry observer Matt are gaining greater Ⅲ 73 percent of employers offered BUSINESS DIARY ...... 19 Friedman of Farmington Hills- popularity across all bonuses to their executives in CALENDAR ...... 20 based communications agency Tan- levels of the company,” 2014, a perk worth about 25 percent of their salaries on average. CLASSIFIED ADS ...... 21 ner Friedman said Adell is the winner said Jason Rowe, man- Ⅲ KEITH CRAIN...... 8 in the sale because WFDF was ager of survey services 69 percent of employers offered bonuses to salaried workers who “highly undervalued” and its owner for ASE. CRAIN’S LIST ...... 17 don’t qualify for overtime at an OPINION ...... 8 didn’t subscribe to a ratings service, It’s not just large compa- average value of 8.8 percent. instead selling on the Disney brand ISTOCK PHOTO OTHER VOICES ...... 9 nies offering bonuses, ei- Ⅲ 48 percent of employers value alone instead of ratings. ther. Bingham Farms-based rewarded hourly employees with PEOPLE ...... 18 Wolf-Chandler Agency LLC re- annual bonuses worth 4.4 percent. RUMBLINGS ...... 27 See Adell, Page 26 WEEK ON THE WEB ...... 27 The lights fantastic THIS WEEK @ An illuminating guide to watt’s happening across Southeast Michigan this holiday season, WWW.CRAINSDETROIT.COM crainsdetroit.com/holidaylights

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Page 4 CRAIN’S DETROIT BUSINESS November 24, 2014 Chinese auto OCC to wreck office building, supplier to make way for future growth

BY KIRK PINHO “The age of the building makes invest $15.1M, CRAIN’S DETROIT BUSINESS it obsolete. To go back and retrofit it and bring it up to code, from a Oakland Community College ex- physical and economic perspec- pects a 296,000-square-foot build- tive, makes no sense,” she said. hire 176 ing in Southfield that it purchased “It’s not worth the time and effort earlier this year for $2.5 million and money to either renovate it or BY DUSTIN WALSH out of bank foreclosure to be de- in any other way bring it up to to- CRAIN’S DETROIT BUSINESS molished next month. day’s standards.” Janet Roberts, executive direc- Last year, OCC also bought Chinese automotive supplier tor of marketing and communica- 5 acres near the building from the Shanghai SIIC Transportation Elec- tions for OCC, said $1.6 million is city of Southfield and the Southfield tric Co. Ltd. is establishing North budgeted to tear down the 17-story Downtown Development Authority for American operations in Madison North Park Plaza building directly $2.2 million, also in case the col- Heights for its electronics compo- west of the OCC Southfield cam- lege needs to expand the campus. nents. pus, south of Nine Mile Road and The land was the site of a Rama- STEC USA Inc. — a subsidiary of east of Northwestern Highway. da Inn before demolition began in China’s largest automaker, The building is expected to be August 2013. The 18-story, 253,000- Shanghai Automotive Industry Corp. imploded. Cleanup and other work square-foot hotel, later renamed — will spend $15.1 million to on the site, such planting grass the Southfield Inn, had been closed open a new headquarters and seed, is expected to be completed since 2007. manufacturing operation in an by May, Roberts said. Lapeer-based North American Dis- existing building at 31831 Sher- Sitting on 11.5 acres and built in mantling Corp. has been awarded man Ave. 1972, the building was bought be- the demolition contract. The project stems from STEC’s cause OCC “didn’t want to be land- North Park Place was purchased winning several contracts with locked” if an expansion of the from Evanston, Ill.-based First Bank General Motors Co., requiring it to quickly growing Southfield cam- & Trust. have a presence in North Ameri- pus, where about 4,000 students Kirk Pinho: (313) 446-0412, ca, according to a state memo on are enrolled this semester, is need- [email protected]. Twitter: the project. ed, Roberts said. @kirkpinhoCDB. The project is expected to create 176 jobs and is supported by the Michigan Economic Develop- ment Corp. through a $700,000 Michigan Business Development Pro- gram grant, to be disbursed based on performance. “STEC USA’s decision to establish its North American headquarters Teamwork that helps. in Michigan tells global companies that When businesses face the changing demands of growth, Michigan holds purchasing goods, or making payroll, they require a strong, great opportunities for grow- yet flexible solution. Asset-based lending, machinery and ing their business,” MEDC equipment financing and SBA 7(a) solutions for small- to Finney medium-sized businesses. President and CEO Michael Finney said in a re- lease. “Michigan leads the coun- Contact us today! try in new manufacturing jobs 888.999.8050 creation, and the new jobs result- ing from this investment will keep us moving in the right direction.” Madison Heights is also supporting the project with brown- field grants. The city was chosen over a site in Missouri, the MEDC memo said. The facility will manage STEC USA’s operations as well as manufacture automotive window regulators, electric horns and other electronics. It’s also expected to house research and development functions as well as warehousing. Dustin Walsh: (313) 446-6042, [email protected]. Twitter: @dustinpwalsh

BANKRUPTCIES The following business filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Detroit Nov. 14-20. Under Chapter 11, a company files for reorganization. RnD Engineering LLC, 12433 Globe St., Livonia. Assets: $100,001 to $500,000. Liabilities: $1,000,001 to $10 million. — Kirk Pinho 20141124-NEWS--0005-NAT-CCI-CD_-- 11/21/2014 2:11 PM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 5 Level One to buy Lotus Bancorp for $16.8M after settlement of civil rights suit

BY TOM HENDERSON suit claimed racist behavior by top 2007, will have CRAIN’S DETROIT BUSINESS bank executives violated the state’s assets of almost Elliott-Larsen Civil Rights Act of $800 million and The sale of Novi-based Lotus Ban- 1976 and led to troubles a customer nine branches. corp Inc. to Farmington Hills-based had over a commercial loan. Lotus has two Level One Bancorp Inc., announced The lawsuit was settled before a branches and last week, marks the consolidation trial scheduled for October in Oak- assets of about of two local banks — and an exit land County could begin. Terms $105 million. strategy for shareholders of Lotus, were not disclosed. Level One which had been embroiled in a civ- Of the acquisition, Level One completed two il rights lawsuit. President and CEO Patrick Fehring Searle other acquisi- The deal was unanimously ap- said: “This is exciting. ... Lotus built tions in the past proved by the boards of directors a tradition with five years: Michigan Heritage Bank at each bank but is contingent on the Indian com- in 2009 and Paramount Bank in 2010. the approvals of Lotus sharehold- munity, and Both were in Farmington Hills. ers and of state and federal regula- we’re going to Both banks have the highest rat- tors. That’s expected to happen in continue to hon- ing of five stars from Fort Laud- the first quarter of next year. or that.” erdale, Fla.-based BauerFinancial Level One will pay about $16.8 Said Lotus Inc., which rates the health of million or $12 a share and 1.3 times President and banks and credit unions. book value, which represents a CEO Neal Sear- But it wasn’t its five-star rating profit of $2 a share for Lotus’ origi- le: “This is an that generated the recent head- nal investors. The bank was excellent combi- lines and news stories about Lo- Fehring launched in 2007 after raising nation. It’s good tus. It was the lawsuit and a series nearly $14 million. for our customers, our employees of emails by Lotus executives that The planned sale follows the set- and the community.” came to light. tlement of a lawsuit against Lotus After the deal closes, Level One, The lawsuit was filed on behalf of that was filed in March 2013. The which also began operations in Jasit Takhar and Anil Gupta. Through their Jackson-based firm, Four Pointe Investments LLC, the pair got a mortgage of nearly $1.5 million from Lotus in 2008 to buy a Trav- elodge motel in Jackson. Later, they Choices had trouble making payments. The lawsuit claims the two had There are thousands trouble working out terms with the of law firms, but bank in part because of racist behavior, a charge that was particu- many talented larly noteworthy because the bank was founded to serve the needs of attorneys choose the Asian-Indian business community. Most of those who invested in McDonald Hopkins. the bank were of Indian descent, James J. Boutrous II Miriam L. Rosen and most of its board members are Detroit Managing Member Chair, Labor and Employment Indian, as are Takhar and Gupta. Practice At the heart of the lawsuit were numerous emails, the most inflam- matory involving Lotus CFO Richard Bauer. In one of the mem- os, written May 24, 2010, Bauer re- ferred to members of the board of .D%POBME)PQLJOT1-$ the bank as “chimps.” 8PPEXBSE"WFOVF 4VJUF #MPPNöFME)JMMT .* Thursday morning, a major Lo- tus shareholder who asked not to be identified said he was sure $IJDBHPt$MFWFMBOEt$PMVNCVTt%FUrPJUt.JBNJtWFTU1BMN#FBDI shareholders would OK the sale. “It’s 1.3 times book value, which mcdonaldhopkins.com Carl J. Grassi, 1SFTJEFOU isn’t much,” the shareholder said. “Normally, I would refuse. If the lawsuit had been settled before the emails became public, there would have been no need to sell the bank. Now, I’m just happy to make a little money. I’m really glad my mon- Let the Giant Buy Your ey will be liquid again.” Lotus common stock holders will receive $12 a share. The shareholder said the word among shareholders is that Takhar and Gupta shared $350,000 in the settlement and got their current mort- IT A$$ET$ gage with Lotus reduced by $100,000. When asked whether those figures were accurate, Elizabeth Thomson of Bloomfield Hills law firm Hertz Schram PC, lead plain- tiffs’ attorney, declined comment. When Searle was asked whether the figures were accurate, he said: “I absolutely decline comment. The suit was amicably settled.” Searle said no discussions have occurred with Fehring about E-waste recycling/data destruction/computer liquidation whether Lotus management would continue after the sale closes. Tom Henderson: (313) 446-0337, Call: 248-891-7330 or Email: [email protected] [email protected]. Twitter: @tomhenderson2 20141124-NEWS--0006-NAT-CCI-CD_-- 11/21/2014 2:12 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS November 24, 2014 More health insurance products available to small business in ’15

BY JAY GREENE CRAIN’S DETROIT BUSINESS Most employers felt the need to continue Small businesses with fewer “ than 50 employees have more with employer-sponsored health insurance product choices for the 2015 plan year during this coverage due mainly to the year’s renewal season than they did last year, but the amount of competitive landscape plans is fewer than in past years. The price increases are vari- (recruiting and retention). able. The average is under 10 per- ” cent for renewables, but the range Cameron Kennedy, Cambridge Consulting Group is from no increase to about 25 percent. For newer Obamacare-com- rate increases, say insurance exec- pliant plans, the increase could be utives at Health Alliance Plan and 20 percent to 60 percent over the TIPS ON OPEN ENROLLMENT, Priority Health. predecessor plans. But some are paying significant- PRODUCTS FOR 2015 The current options are still re- ly higher rates, depending on the duced since the Patient Protection Ⅲ Meet with your health insurance makeup of their workforce, insur- agent. Know if you are considered and Affordable Care Act was ap- ance executives and agents told proved in 2010, several metro De- a large or small employer with 50 Crain’s. qualified full-time equivalents. EEXECUTIVEXECUTIVE CCALENDARALENDAR troit insurance executives said. Last year, President Barack Oba- For Southeast Michigan, the ma- Ⅲ ACA has brought about many ma deferred to state insurance com- changes in terms of compliance. Regional event dates, locations and contacts, all in one place. jority of small companies are re- missioners whether to allow health Small groups, in particular, need to crainsdetroit.com/executivecalendar newing their existing health bene- insurers to extend plans that wer ensure they are compliant with new fit policies for 2015 at single-digit not Obamacare-compliant through regulations and requirements. 2015. Under Obamacare, health Ⅲ Explore new medical plan plans must include a minimum of options for coverage. They include 10 essential health benefits and defined contribution with private comply with other affordability re- exchanges, self-funding, shared or quirements. level funding, and narrow network Michigan’s health insurers were plans that offer lower cost but limited provider choices. What Works for Cookies allowed to extend plans, and many of them have allowed small busi- Ⅲ Promote wellness and healthier lifestyles in the workforce. Health nesses to continue their plans with insurance is expensive because of Seldom Works for Financial Advice. price increases that reflect histori- chronic diseases, many of which cal trends. are either preventable or However, Blue Cross Blue Shield of manageable with preventive care Michigan decided not to extend non- and regular treatments. Obamacare-compliant health plan Ⅲ Pay close attention to debate in hen it comes to financial choices for 2015, forcing many Congress over changes to the W clients to decide whether to pur- Affordable Care Act. There may be counsel, the last thing you chase a more expensive ACA-com- changes that impact small want is cookie-cutter advice. pliant plan with the Blues or go else- companies, including modifying the where. definition of full-time employers At Legacy Wealth Management from the current 30 hours to Blue Cross officials said they something higher. Group of Wells Fargo Advisors, don’t have an average premium Source: Interviews with Health Alliance Plan every recommendation and piece of rate that small businesses would and Blue Cross Blue Shield of Michigan pay because of the large number of advice we provide is custom advice, plan options. Detroit-based Blue Cameron Kennedy, president of tailored specifically to you. Because Cross is offering 53 different small- Troy-based Cambridge Consulting group plans with eight of those of- investors’ needs are never identical, Group, said Cambridge’s small-busi- fered on the Small Business Op- ness clients are paying increases the advice we provide is always tions Plan exchange. for Obamacare-compliant policies exclusive to your unique individual, that range from a 10 percent cut in family, or business situation. The next Increasing cost-sharing premiums to more than a 90 percent rate increase. He agreed most fall in time you suspect you’ve been given Health insurance agents tell the 20 percent to 60 percent rate in- Crain’s they are quoting ACA-com- the same financial plan as the next crease range. pliant plans for various insurers to guy, consider calling us. Because with “There were many factors that small businesses that are 20 per- us, there is no next guy. cent to 60 percent higher than their previous plans. See Next Page

NOMINATE YOUR WORKPLACE FOR SOME HEALTHY COMPETITION Is your workplace the healthiest in Michigan? Find out by nominating your company for Healthiest Employers of Southeast Michigan, an awards program that will be included in a June 2015 Crain’s report. The Healthiest Employers award, sponsored by Health Alliance Plan, looks at the best practices that employers across the state use to create a healthy Custom Solutions for a Complex Financial World workplace. Judging will be handled by Indianapolis-based Grosse Pointe: (313) 885-6095 Scottsdale: (480) 443-5717 Healthiest Employers LLC. The group has conducted LegacyWealthManagementGroup.biz similar competitions in most of the major U.S. cities. Wells Fargo Advisors, LLC, Member SIPC The contest is free to enter. Winners will have their wellness efforts recognized as part of a print Thomas Buhl Kenneth Fruehauf Christopher Zich supplement to run next year. They also will be featured in a video series as First Vice President, Investments Managing Director, Investments First Vice President, Investments well as honored at an event in April, with a time and location still to come. To enter, go to crainsdetroit.com/nominate. The deadline for entering is Jan. 26. 20141124-NEWS--0007-NAT-CCI-CD_-- 11/21/2014 2:12 PM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 7

From Previous Page new business and customer solu- plans, which offers reinsurance, or ees, the Affordable Care Act will im- tions, said 90 percent of HAP’s stop-loss, above a specified dollar pose financial penalties on compa- drove the increase, and each em- This is the small-business customers have al- amount, Selinsky said. nies that do not offer at least 70 per- ployer may have been impacted dif- “ ready chosen to renew either for the HAP and Priority Health use the cent of their workforce health ferently,” Kennedy said. “Rating busiest I have seen it Dec. 1 or Jan. 1 renewal dates. Royal-Oak-based iSelect Custom insurance. The fine is $2,000 for factor changes, mandated benefits, For those small businesses still Benefit Store private exchange. every employee, minus the first 80 taxes and fees, and plan design map- in the shopping, Selinsky said many have employees. ping all played a role in the increas- “Those employers having to go experienced “sticker shock” at the es.” last 12 to another plan or a different carri- In 2016, companies with 50 to 99 prices of the Obamacare-compliant full-time employees must offer cov- To hold down premium increas- er are seeing rates most times in plans. erage or face the fines, and the re- es, Kennedy said, many small em- years. the higher double digits,” Selinsky quired minimum for coverage will ployers changed their plan design ” “We all knew the new health said. “If you choose a high-de- rise to 95 percent of a company to increase deductibles and copays Steve Selinsky, care plans are more expensive,” he ductible plan, there is not as big a and increased cost-sharing with Health Alliance said. “This is the busiest I have sticker shock.” workforce. employees. Plan seen it in the last 12 years. They Kennedy said some of his small- Small businesses with fewer “One strategy we did not see was are looking at all kinds of different business clients also will be look- than 50 employees are exempt dumping coverage and sending em- solutions.” ing more closely at private ex- from coverage requirements un- ployees to the individual market,” businesses and a new catastrophic changes. They like predetermined der the law, which defines a full- Kennedy said. “Most employers felt plan. Avoiding ‘sticker shock’ employer costs, increased employ- time employee as someone work- the need to continue with employer- “The catastrophic plan is the ee plan flexibility and lower ad- ing at least 30 hours a week. sponsored coverage due mainly to leanest you can legally sell any- Some small employers are look- ministrative costs, he said. Jay Greene: (313) 446-0325, the competitive landscape (recruit- more,” Cole said. ing at private exchanges or self-in- Next year, for larger businesses [email protected]. Twitter: ing and retention), as well as the HAP’s Steve Selinsky, director of sured or partially self-insured with 100 or more full-time employ- @jaybgreene preferred tax treatment of employer-sponsored plans versus the individual market.” Kevin Elliott, president of Diebold Insurance Agency in West Branch, said the company will pay 32 percent to 37 percent higher premiums next year for a Blue Cross Oba- macare-compliant plan. Monthly premiums for 34 quali- Invest Wisely fied employees totaled $10,063 in 2014 compared with $13,295 in pre- Choose an Advisor Who Sees the Bigger Picture miums for a high-deductible ($1,750) plan with a health savings account or a $1,000 deductible pre- WORLD CLASS MONEY MANAGERS | TRANSPARENT FEES INDEPENDENT ACTIVE TAX LOSS HARVESTING | ADVANCED TAX PLANNING ferred provider plan for $13,772, El- liott said. Under Obamacare rules called “member-level rating,” small businesses are charged different premium amounts based on the age of As an Independent Registered Investment Advisor, Schechter is freed from the constraints and economic pressure many their employees. For example, Elliott said, a 30- advisors face at large brokerage firms. We have no one telling us to “sell” a specific fund or proprietary product. year-old employee at Diebold is paying $357 per month compared Come discover the independent difference, where our clients get our best advice, solutions, and products no matter what. with a 58-year-old who is paying $701 per month. Trusted for 75 years. “Companies will find a way to reduce costs by getting rid of older people,” Elliott said. “I have already seen this. … There are huge issues (of age discrimination) coming down the road.” Diebold also operates affiliated companies of Tawas Bay Agency LLC and Hartz Insurance LLC in Detroit. Choosing to renew John Dunn, Blue Cross vice president for middle and small group business, said as of Sept. 30, more than 60 percent of Blue Cross small- business customers had already decided to stay with the state’s largest insurer and migrate to an Oba- macare-compliant plan. Companies with Dec. 1 plan start date have to decide in the next few days, and those with a Jan. 1 plan start have until mid-De- cember to decide on a plan. “We are seeing some move to self-insured offering, and some are Trusted for 75 years. still considering it,” said Kirk Roy, Blue Cross vice president for health reform. “We also are offer- Bernie Kent, JD, CPA, PFS | Jason Zimmerman, MBA, CLU, CAP | Marc Schechter, CLU | John Stein, MBA, CFA | Brad Feldman, JD, CLU ing a defined contribution on our Ilana Liss | Jeff Vieder | Aaron Hodari | Jordan Smith, JD, LLM | Paul Snider | Chris Hale | Kevin Beauchamp | Larry Leib, JD private exchange, Glidepath.” HealthPlus of Michigan also decided to phase out its noncompliant ACA small-business policies, said Bryan Cole, HealthPlus director of product development. Most small employers renewed with HealthPlus, said Bridget Contact a Schechter Expert to learn more about how an Independent advisor can make a difference: WWW.SCHECHTERWEALTH.COM Hollingsworth, HealthPlus manag- Call 1.866.731.9500 or email [email protected] BIRMINGHAM, MI | NEW YORK, NY er of enrolled accounts. “Maybe a third have to decide what to do for 2015,” she said. Hollingsworth said the Flint- Securities may be offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Investment Advisory Services may be offered through NFPAS or Schechter Investment Advisors, LLC. Schechter Investment Advisors, LLC. is not affiliated with NFPAS. NFPAS does not provide legal or tax advice ands i not a Certified Public Accounting firm. SIA is an SEC based insurer is offering seven registered investment adviser; please consult the Firm’s Form ADV disclosure documents, available on the SEC’s Investment Adviser Public Disclosure website. PPOs and seven HMOs for small 20141124-NEWS--0008-NAT-CCI-CD_-- 11/21/2014 6:44 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS November 24, 2014 OPINION Some bankruptcy fees are ‘bunkum’ etroit’s bankruptcy may soon be over, and a debt is owed U.S. Bankruptcy Judge Steven Rhodes and D dozens of players for pulling the city through in a re- markable 18 months. But the rear-mirror view also includes some incredible examples of outrageous hubris in the billing practices of some attorneys and consultants whose firms are in line for millions of dollars from the beleaguered city’s battered treasury. We suspect there are some who may be giving thanks this week for the billable quarter-hour. Our nominee for the “Billable Hours Bunkum” award goes to law firm Dentons for charging $450, as reported by WXYZ Channel 7, to walk from a downtown law office to the U.S. Dis- trict Courthouse (and don’t forget the minutes spent in security line!). All in all, though, given the scope of the city’s debt, the final tab may seem reasonable. We can sympathize with hiring car services for Detroit- Cleveland runs; but we wonder: Hmmm, was the lawyer in the car ALSO doing work for other clients? Fee examiner Robert Fishman negotiated some line items downward, but others — like the fee for time spent walking four blocks to court — remained. Kind of makes us want to ask the boss about paying us for TALK ON THE WEB time in the car on the way to work. From www.crainsdetroit.com to make changes. Repeal and re- Re: Future Red Wings arena Reader responses to stories and place with what? No call for lame-duck action Is this project going to do for De- blogs that appeared on Crain’s Dent troit what Comerica Park and Ford website. Comments may be For at least nine days in December, Michigan lawmakers Field could not? What positive impact edited for length and clarity. There was always an easier and on Detroit’s neighborhoods will this will meet for what’s otherwise known as their “lame-duck” Derek Dimitriov more efficient method of getting session before newly elected members take office in January. project have? Construction people health care to those who needed it. are being temporarily put to work. It is called vouchering, and it basi- The best thing they can do is pass a comprehensive plan to The skilled jobs in the Ilitch organi- Re: Bus rapid transit study draws increase funding for roads and transit. Just last week, a re- cally was never even brought up as zation are coming over from Joe concerns over stops, loop an alternative. gional planning agency reported that nearly 2,000 miles of Louis Arena. The growth in perma- How many people on the BRT It would have left alone those roads in Southeast Michigan should be torn up and rebuilt — nent jobs is only going to involve who were satisfied with what they design team have actually relied up more than 500 miles than the year before. minimum-wage jobs, such as con- had, and gave a legitimate, govern- cession workers. The development on public transit for their liveli- The worst thing they can do is use those days to try to enact mentally-run option to those that around the arena is not guaranteed. hood? Day after day, season after were not. controversial changes in things like the allocation of Michi- These types of projects have been season, year after year? There are Freedom Trinity gan’s Electoral College votes in presidential elections. failures in other cities. Remember enough mistakes in this plan to be- Many may be surprised to learn that it’s up to states how how great the Silverdome turned lieve they haven’t gotten the expe- It was ludicrous to waste billions they allocate their specific electoral votes. Michigan is one of out for Pontiac? rience on the team. Or they don’t and throw the majority of Ameri- Carolyn Mazurkiewicz take pride in their work. 47 states that have a winner-takes-all rule. Some Republicans cans into programs they neither cuGMaUvdtP wanted nor needed, just to insure would like to change that. This project cannot afford any 14 million people who were previ- The Metropolitan Affairs Coalition — a coalition of busi- more delays. It’s time to rebuild De- Re: Blue Cross CEO Loepp: Obamacare ously uninsured. Especially since ness, labor and government leaders in Southeast Michigan — troit and build its future by should be tweaked, not repealed there was already a federal pro- went on record last Friday opposing any change in the lame- putting people to work and attract- gram in place (Medicaid) — but ing new businesses, workers and People complain about the Af- duck session. Such a change, the MAC board said, requires sig- people still try to spin this and entertainment to our state. Detroit fordable Care Act, but the fact is it force it into a positive. nificant study. We agree. cannot afford to wait. is here, so work with the president Pjk KEITH CRAIN: Last one to leave? The lights are already out It’s bad enough that nothing is coming obsolete faster might be a good idea. If er from nuclear, while Germany percent by 2030. The proposal put ever done about my pet peeve. Like than we’re replacing it. you want to create com- has implemented plenty of green natural gas front and center as the clockwork, when there is a moder- So, if you follow the plete apoplexy, then energy. But the heavy reliance on candidate for a base-load fuel. ate to severe storm, thousands of logic, if we keep going as just bring up the idea of solar power there is an economic We have lots of natural gas, and people in Michigan lose electricity we have, we’re not going adding nuclear power model that just doesn’t work. its price has never been lower in for an extended period of time. to have enough capacity. plants. Then, there are They will have plenty of power recent times — so maybe we can Mind you, they never lose tele- I can’t help but think the many people who — but they will all be broke. think about switching to natural phone service, even if they still that our legislators and think we should dot our It’s a real dilemma for the U.S., gas as an energy source. have a land line, and their natural regulators are making it landscape with lots of and here in Michigan. We haven’t But natural gas is only part of a gas is supplied. (Although without unnecessarily hard for windmills to generate had thoughtful energy policy from workable solution. electricity, the gas isn’t much help power companies and power. I would love to our federal government for Perhaps we need our state gov- in keeping the furnace running.) others to create new hear how that experi- decades, since the very first oil cri- ernment to create a new bureau- Now, Public Sector Consultants, ways to generate ener- ment is going across the sis back in the seventies. cracy in Lansing to come up with an outfit in Lansing, has done a gy. river in Ontario. But changes are coming. The an energy policy for our state. study that seems to conclude that You can forget about any sugges- In Europe, France is now gener- EPA proposed in June that power Otherwise, we won’t freeze but our power generating system is be- tion that a new coal-fired plant ating over three-quarters of its pow- plant carbon emissions be cut 30 we’ll sit here with the lights out. 20141124-NEWS--0009-NAT-CCI-CD_-- 11/21/2014 10:23 AM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Public transportation can be key to revival As construction of the year. Witness the current vestment in the city, supporting ment in much the same way as do more than 100 years ago should M-1 Rail Line has begun in debate in Lansing regard- higher densities and less overall suburban developments have echo forward to our current lead- earnest, it is worth exam- ing the amount required to cost per capita of public dollars. done, but with much less public in- ership to provide them with the ining the history of public “fix” Michigan’s roads. Not all public transportation vestment and cost per capita. The will and desire to find a balance of transportation in the Chakrabarti argues has to take the form of elevated Portland Metropolitan Area Ex- new and modern strategies for metro Detroit area. It may against the economic in- rails, subways and trains. For express line, which serves over public transportation and the re- be a surprise to many that centives that favor high- ample, Cleveland’s HealthLine is a 120,000 passengers a day, was fund- birth of not just the city of Detroit, throughout the late 19th end single-family home- recently developed bus rapid tran- ed by the reallocation of money but all of Southeast Michigan. century and the first half ownership over other sit system that connects down- originally intended for freeways. Let us strengthen our support for of the 20th century, Detroit types of higher-density town with its medical/hospital dis- Public transportation can result the Regional Transportation Au- had a well-developed pub- living environments. tricts and universities. It employs in more sustainable cities, more ef- thority and work together for lic transportation system. Theo Pappas If developers of sub- new technologies and buses to sup- ficient forms of transportation, brighter, better communities. The Between 1860 and 1910, with the urbs were allowed to build sub- port a clean, efficient and safe less traffic congestion and parking automotive capital of the world can establishment of the Detroit City divisions only if they also built transportation system. The result problems, and most importantly, lead the way forward once again. Railway Co. and the growth of its the utilities and roads to support is that along each stop of the 4-mile the greater availability and access Theo Pappas is an associate and first passenger rail system, Detroit such development, then a free- journey, new retail and housing to transportation by people who senior planner at Stantec Architec- was invested in a trolley/streetcar market consequence would have developments have taken root. need reliable transportation to ture Group in Berkley. He is a system that grew and expanded been much less suburban devel- In fact, public transportation of- maintain their employment. board member of AIA Detroit and along with its tremendous popula- opment and a much greater in- ten stimulates real estate develop- What seemed the right thing to AIA Michigan. tion growth at the dawn of the American Industrial Age. At first there were horse-drawn trolleys, but soon they were re- placed with electric ones. Detroit expanded its rail system with the growth of the Grand Trunk West- ern Railroad routes and lines, fur- thering the development of the in- terurban electric railway that linked downtown Detroit with its surrounding communities. Through the early 1950s, Detroit upgraded and expanded its bus system, rail system and highways in an effort to maintain and feed its tremendous economic growth in the postwar environment. It all came to a stop in 1956. The Metro Detroit Streetcar Service ceased after 93 years — yet this was not a spontaneous event. In 1933, the voters of Detroit approved a subway plan, but the “state advisory board” refused to recommend construction to the federal government. In 1934, the Department of Street Railways, with more than 1,600 streetcars and 19 routes at its height, began a campaign to replace its streetcars with buses. What followed was suburban sprawl, transit strikes, noisy and foul buses, and the commitment of vast public funds and resources to highways, freeways, parking structures and roads. Since the 1950s, numerous stud- ies, task forces, and committees put forward dozens of plans for mass transit in Southeastern Michigan, but none gained political or economic support. The die was cast for a low-density, auto-dependent culture. Ironi- cally, the freeways and highways that were built to ostensibly facilitate transit into the city did the opposite. As we look toward the future of mass transportation in metropolitan Detroit, we need to address the key myth of mass/public transportation highlighted by Vishaan Chakrabarti in his book A Country of Cities — A Manifesto for an Urban America. In regard to the notion that mass transportation is not economically self-sufficient and requires massive governmental subsidization and continued public investment, Chakrabarti writes: “Proponents of passenger rail are continually pressed to prove profitability, while few ask whether airlines or auto companies would be profitable without massive government subsidies and bailouts.” The truth is that government subsidizes the construction and maintenance of highways, roads, bridges, and other infrastructure needed to support the automobile to the tune of billions of dollars every DBpageAD_DBpageAD.qxd 11/6/2014 4:45 PM Page 1

Advertisement Counting on Talent A CFO’s guide to the new human capital By James Ritchie

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November 24, 2014 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK

Tom Henderson covers banking, SMALL-BUSINESS LENDER GROWS finance, Retail Capital uses private equity technology and investment to expand, boost analytics biotechnology. Call (313) 446- to speed up lending, Page 13 0337 or write thenderson @crain.com.

Tom Henderson Diligence yields successful niche Melissa Spickler can manage your money and, in a pinch, probably watch your back, too. She is managing director of Spickler Wealth Management Group in the Bloomfield Hills office of Merrill Lynch and has carved out two niches to go with her group’s traditional wealth management services: serving the investment needs of the LGBT community and helping manage health care costs for the elderly. Spickler Spickler, who was named one of Barron’s top 100 financial advisers from 2012 to 2014, majored in criminal law at Michigan State University and from 1977 to 1979 worked undercover for the state attorney general’s office, looking for fraudulent billing practices at Lansing-area car dealerships. One night, a guy who worked at one of the dealerships where she DAVID HALL unearthed fraud saw her in a bar, Carl Hollier (left) had to scramble for financing for a home in the Boston-Edison section of Detroit. When Drextel Amy of Liberty Bank and Trust heard about suspected she was the whistleblower Hollier’s interest rate — 18 percent — he exclaimed, “We’ll get this redone,” and tapped into a J.P. Morgan Chase program. and followed her home. “He broke into my house and threw me against the wall,” she said. Trained in martial arts, “I broke the guy’s arm and nose. The police came and took him away. I decided law enforcement wasn’t for me.” Spickler sold life insurance, then new cars. In 1980, a customer, impressed Bank – and trust by her sales skills, suggested she apply to Merrill Lynch’s training program. BY TOM HENDERSON took him past the Chicago Street house Spickler got an interview with CRAIN’S DETROIT BUSINESS he bid on. His aunt and uncle now live Russell Mann, who ran the Bloomfield Chase program across the street, and his brother, Adam Hills office. “It didn’t go well, and I t is fitting that Liberty Bank and knew he wasn’t going to hire me,” she Hollier, a vice president of the Hantz Trust, as part of the $100 million recounted. “I went out to the lobby Woodlands urban farming project on the program to help revitalize Detroit opens doors for and sat there for four hours. Finally, east side, lives around the block. he came out.” that J.P. Morgan Chase & Co. an- “The house had been sitting there “ ‘What are you doing here?’ he said. nounced in May, has begun clos- “ ‘I’m not leaving until you hire me.’ empty. I’d been making calls for years ing loans for some of the winning Detroiters with loans He hired me and I started on trying to figure out who owned it and if Monday,” she said. Ibidders for houses auctioned off by the it was for sale,” said Hollier. Spickler spent three months training Detroit Land Bank. So when Hollier, who retired with a in New York City, then was assigned It is fitting, too, that one of the first for rehabbed homes two male mentors upon her return. disability from the Detroit Fire Depart- loans the bank closed, on Oct. 31, was “They told me I had to open 100 new ment and now is a professional DJ who accounts in a month,” she said. for Carl Hollier, who got in a highly ket in November 2009 when it bought the tours regularly with the rapper Xzibit, “I opened 110 accounts my first publicized bidding war for a house in assets of the long-struggling Home Feder- month. That’s when they told me I’d found out the house was up for auction the historic Boston-Edison district, al Savings Bank after it was ordered set a Merrill Lynch record,” she said. — it was built in 1914 with a third-floor which drew so many online viewers closed by federal and state regulators. Spickler’s mentors had thrown out ballroom, five bedrooms, four fireplaces an impossible number to see how she last May that the land bank’s website Home Federal Savings Bank had a and a separate butler’s stairway — he handled stress. Today, she has a crashed. reputation far beyond its size. Always a team of 10. was determined to get it. On July 10, Chase announced the small bank, it was founded in 1947, a few Twenty years ago, Spickler added Hollier’s winning bid was $135,000. program with Liberty to finance the pur- weeks after Jackie Robinson broke the her first lesbian-gay-bisexual- “My fiancee was watching the auction transgender clients, a same-sex chase and repairs of homes bought at color line in baseball, to break the mort- online in Arizona,” he said. “She was couple. “I didn’t judge them.” auction. gage color line in Detroit. The couple sent her a referral, and by calling me. ‘Are you out of your mind? I Liberty set aside $15 million for word-of-mouth, Spickler had a niche. Until Home Federal Savings was know you love that house, but ….’ ” loans, with the Chase Foundation con- About 10 years ago, Stacey Cassis, founded, African-Americans here were There was another “but.” But the a member of the LGBT community, tributing a grant of $5 million to offset shut out by the city’s banks from getting land bank’s website crashed just before joined Spickler’s group. Nancy Katz of loan losses Liberty might incur, $300,000 Plymouth served with Cassis on the mortgages. his bid became official, requiring a sec- for a down-payment assistance fund to board of Affirmations, an LGBT The loan was particularly appropri- ond auction a few days later. This time, community center in Ferndale, and help eligible Detroiters get up to $10,000 ate for Hollier. his chief rival gave up early, and Hollier became a client. each, and $200,000 in operating costs. As an 11- and 12-year-old nearly “Melissa is great. She’s done a won- got the house for $97,000. Liberty Bank and Trust, based in three decades ago, Hollier had a Detroit derful job for us,” said Katz. New Orleans, entered the Detroit mar- News paper route in Boston-Edison that See Chase, Page 12 20141124-NEWS--0011,0012-NAT-CCI-CD_-- 11/21/2014 10:28 AM Page 2

Page 12 CRAIN’S DETROIT BUSINESS November 24, 2014 Finance Chase: Opening doors to build homes ■ From Page 11 That was when things really got operational and pro- interesting. gram support. Hollier says he had been ap- “I’ve never gone proved by an out-of-state bank for through a process a mortgage, but on July 31, the day with a funder that the loan was supposed to close, the went this quickly bank backed out because it didn’t and this smoothly,” like a clause in the auction con- said Invest Detroit tract: that his house would revert President Dave back to the Land Bank if it wasn’t Blaskiewicz. He said brought up to code in nine months. that two projects are Hollier applied for the Liberty nearing final ap- Bank program, but there wasn’t proval, which he ex- enough time to close on a loan to pects to be a formali- beat the 90-day deadline he had as ty, one for an iconic an auction winner to pay the Land Detroit building he Bank. said he can’t name So Hollier took a loan at 18 per- yet, the other for a cent interest from a nonbank lender growing metal for the $80,000 he needed to pay the processor to buy Land Bank in full. COURTESY OF J.P. MORGAN CHASE & CO. more equipment. That’s when Drextel Amy, re- Chase employees Paula Oliveira, Jennifer Prichard and Blaskiewicz said gional president for Liberty Bank, Benjamin Wang provided the Detroit nonprofit three other projects re-entered the picture. Vanguard Community Development Corp. a business are well along the ap- model to buy, rehab and sell homes. “I heard he’d closed and called proval process, and him up,” Amy said. “I told him, there is a full pipeline line items for such things as rehab ‘Listen, you’re at 18 percent. We’re of projects seeking financing. cost, holding cost, broker fees, tax- not going to let that happen. We’ll Ian Wiesner, the senior loan offi- es, buyer income, estimated get this redone.’ But it wasn’t easy. cer at Capital Impact Partners, said lenders loan to value and so forth. It’s a long process, 10 times longer he expects a first close from the Gaston said her organization than a conventional loan.” fund to be in early December, on a has done new single-family and se- Under terms of the Chase pro- renovation for a 36-unit apartment nior housing developments, but gram, Liberty provides loans of up near Midtown, with a pipeline of this is the first time it has done re- to 96.5 percent of rehabbed value at projects worth about $25 million. hab projects, and the Chase in- market rates to customers with “We focus on multifamily rentals. volvement is crucial. credit scores as low as 600. We want to increase density along “This is going to help us shore key corridors in the city,” he said. An outside appraiser and a bank up the market and then to ignite “Chase has been a great partner. appraiser put a value on a house as the market,” she said. They really listened to us when they is, then the bank and the customer Her Chase crew was made up, asked us what the market needed.” each get estimates for the repairs ironically, of three members of needed to get the house up to code, Chase’s private banking group, and more appraisals are then which manages money for the afflu- $21 million and counting made of what the finished house ent. Jennifer Prichard was here from With the announcement on Sept. 1HHGDQ,QYHVWPHQW will be worth. If all the numbers Columbus, Ohio, with Benjamin 16 that Chase will fund $1 million of work, the loan can close. Wang in from Hong Kong, and Paula a $2.7 million innovation fund run The numbers worked for Hol- Oliveira in from Sao Paulo, Brazil. 5HDO(VWDWH/RDQ" by Macomb Community College to sup- lier, and he got a loan of $150,000 at They temporarily doubled Van- port business start-ups throughout 5.5 percent, $80,000 to refinance the guard’s workforce, and all three Southeast Michigan, the bank has house, the rest for rehab costs. said they got as much or more out of deployed more than $21 million of “People were getting great deals the program than they contributed. the $100 million it committed to in on houses, but there was no ability Chase has described the employ- May, according to Steve O’Halloran, to get financing,” said Amy. Now ees who came here as among the there is.” Chase’s head of public relations, bank’s rising stars. corporate responsibility. “This is a great opportunity for The Macomb fund will provide More rehab help Chase to develop leadership, to $25,000 grants to help metro Detroit take its best and brightest and entrepreneurs get ideas ready for On Nov. 3, New York City-based bring them together to collaborate. market and will make loans of up to Chase announced a five-year pro- It’s a great training ground,” said $100,000 to help more advanced ear- gram called Detroit Service Corps Wang, a Chase vice president. ly-stage companies get to the point to send teams of employees to De- they can attract equity funding. troit to help nonprofits. Closing in a hurry In addition to the $7.5 million in The first four three-person teams program support for Invest Detroit finished their three-week stints last “We got these loan funds closed in and CIP and the $5.5 million for Lib- week at Eastern Market, Focus: Hope, less than 90 days. In record time. It erty Bank and Trust, Chase spent Michigan Community Resources and never happens that fast,” said $2.8 million for a mapping project to &DOOXV Vanguard Community Development Aaron Seybert, Chase’s Ann Arbor- fight blight, $2.1 million on work- Corp. More teams will arrive each based vice president of community force readiness programs with sev- /RDQDPRXQWVDQGDERYH year for brief labor-intensive stays. development banking and new mar- eral area nonprofits, $1.2 million for The team at Vanguard was to de- $GGLWLRQDODYDLODEOHORDQV kets tax credits. the M-1 Rail line along Woodward, velop a business model to buy, re- He was speaking about a pair of and $1 million on small-business 6%$86'$/RDQV hab and sell homes in Detroit’s $20 million loan funds for two non- initiatives with Eastern Market, 2ZQHU2FFXSLHG5HDO(VWDWH North End, an area bounded by profit community development Bizdom and TechTown. Woodward Avenue to the west, I-75 lenders, Invest Detroit and Capital Im- /LQHVRI&UHGLW Add in the $40 million for Invest to the east, I-94 to the south and pact Partners — the Chase Invest De- Detroit and CIP, which has been $FFRXQWV5HFHLYDEOH Woodland Street to the north. troit Fund and CIP’s Detroit Neigh- put into but not yet spent, and (TXLSPHQW “It’s been a wonderful experi- borhoods Fund, which will be Chase is nearly two-thirds of the %DQN:RUNRXWV ence,” said Khalilah Gaston, execu- supplemented with $10 million of way to its total commitment. tive director at Vanguard, a few CIP’s funds. When asked about the progress days before the embedded Chase The Invest Detroit Fund will Chase has made, Detroit Mayor employees left for home. “I’m sure provide flexible-term financing for Mike Duggan said: “Chase has been all the other nonprofits say they commercial and industrial busi- a great partner. They’ve had me to had the best team, but I did.” ness, while the CIP fund will pre- New York twice to meet with senior She proudly showed off a detailed dominantly finance multifamily management. Every two or three spreadsheet her Chase volunteers residential properties, mixed-use weeks, someone from Chase is in had come up with that would pro- real estate and grocery stores. my office. There’s no doubt they’re ZZZHFOLSVHFDSLWDOJURXSFRP vide the backbone of the program. In addition to those funds from completely engaged.” 2UFKDUG/DNH5G6\OYDQ/DNH0, The spreadsheet included cash- Chase Bank, the Chase Founda- Tom Henderson: (313) 446-0337, ³6LQFH´ flow analyses for buying homes us- tion gave the two organizations a [email protected]. Twitter: ing both credit and grants, and total of $7.5 million in grants for @tomhenderson2 20141124-NEWS--0013-NAT-CCI-CD_-- 11/21/2014 10:42 AM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 13 Finance Retail Capital uses investment to expand, boost analytics

BY TOM HENDERSON He said risk analytics can help their neck out for us,” he said. Dan Gilbert’s companies, bought CRAIN’S DETROIT BUSINESS Retail Capital determine which po- Bethesda, Md.-based Rapid Financial tential customers, even those with Services LLC. Doing business as Retail Capital LLC is wasting no bad credit scores, are actually Words of support Rapid Advance, it, like Retail Capital, time putting to use a large private good risks, something banks can’t “More than anything else, we re- is a specialty finance company fo- equity investment announced in attempt to do for regulatory rea- ally liked Ryan and the manage- cusing on growth-capital loans to August. sons. Goldman said factors that ment team. We are very picky about small businesses, generally ranging The company, which provides contribute to a bad FICO score are whom we partner with and who’s in between $20,000 and $500,000. growth capital to small businesses, often irrelevant to whether a cus- our portfolio,” said Steven Begleit- “It’s a great space to be in, it re- is expanding its headquarters in tomer has a thriving business. er, a managing director at Flex- ally is. There’s a lot of private eq- Troy, has opened a New York of- He said many small-business point, which focuses on health care uity interest in that space, so I’m fice and is beefing up its risk ana- owners put a lot of their expenses and financial services. glad we got ahead of it,” said Kevin lytics department so that it will on their credit cards, which can “They’re only a few years old. In Prokop, a managing partner at soon be able to provide funding the lower their scores, and they may any industry, there’s a right way Rockbridge. same day a small business fills out have hurt their scores by making and a wrong way to do things, and Prokop said small businesses an application. inquires for equity loans or lines they did everything the right way.” have more difficulty getting tradi- In August, Flexpoint Ford LLC, a of credit from banks and getting “I like their model. It’s a fast- tional bank financing now, in part Chicago-based private equity firm turned down. growing business,” said Crest- for caution borne out of the recent with more than $1 billion under But, Goldman said, that doesn’t mark Chairman and CEO W. recession, but more so because of management, invested in Retail mean they don’t have healthy busi- David Tull, who described Crest- federal regulatory changes that re- Capital, which is ranked 35th in the nesses that will be able to use mark’s role with Retail Capital as quired banks to tighten lending U.S. and No. 1 in Michigan on the GLENN TRIEST growth capital successfully. “acting as an incubator. We creat- standards. 2014 Inc. list of the 5,000 fastest grow- Founder Ryan Rosett says Retail Dave Wilkins, the president of K9 ed a joint venture with them, CM “Traditional lenders are finding Kindergarten LLC, a pet store, animal ing companies in the U.S. Terms of Capital provided $28 million in capital Retail LLC, so they could fund their it very hard to be active in this last year, expects to provide more hospital and animal day care in transactions, grow their business investment weren’t announced, but space because of regulatory re- than $60 million this year and aims for Shelby Township, is an example. and do what they did, which is be- Flexpoint generally invests between form, so it’s opened up a real op- $30 million and $150 million in its more than $110 million next year. Wilkins needed capital in June come independent.” portunity for businesses like portfolio companies. to add inventory, an on-site bakery Tull said the decision to end the Rapid Advance and Retail Capi- Retail Capital, which was found- typically don’t have much collater- and a tag machine but had been joint venture and for Retail Capi- tal,” he said. “Small businesses are ed in December 2010 and operated al or lack detailed financial state- turned down for a bank loan be- tal to take on equity funding from the backbone of the economy, and until earlier this year as a joint ments — is the company’s propri- cause of a mediocre credit score. Flexpoint Ford was amicable. it’s important for them to be able venture with Troy-based Crestmark etary analytics, which draw He said the business was grossing “There were a range of options Bank, had 2013 revenue of $7 mil- correlations between such things $50,000 a month and was growing when we started,” he said. “We to get growth capital.” lion and three-year growth in rev- as what margins different kinds of and profitable. might have bought them, we might Prokop said he has been watch- enue of nearly 7,000 percent. businesses typically have, how He said he got first got $46,000 have continued in business with ing Retail Capital’s growth. “They Founder Ryan Rosett, who has the revenue has been growing and from Retail Capital, then another them. It’s totally, absolutely amica- run a very good business. They’re title of chief revenue officer, says where the business is located. $13,000, and plans to have the mon- ble that they decided to go the way good operators,” he said. the company plans on growing “It’s a way for us to use big data ey paid back by February. they did. We’re excited for them.” Tom Henderson: (313) 446-0337, revenue more than 100 percent to move faster than banks can “Retail Credit gave us the In September 2013, Detroit-based [email protected]. Twitter: this year. move,” said Goldman. chance we needed. They stuck Rockbridge Growth Equity LLC, one of @tomhenderson2 As part of the deal, Flexpoint brought in Glenn Goldman, a technology and financial services veteran, to be LENDING | TREASURY MANAGEMENT | BANKING | BUSINESS SERVICES CEO of the firm. Technically, Retail Capital doesn’t provide loans to small businesses, it $7,057 added back to your buys a share of Goldman future sales and is paid back with * a percentage of future cash flow, in- bottom line…every year. cluding credit card payments made by its customers’ customers. According to Rosett, the compa- Business solutions that help ny provided $28 million in capital last year, expects to provide more than $60 million this year and is targeting more than $110 million you succeed. next year. Previously, Goldman had been CEO of Capital Access Network, a nonbank lender to small business- Your hometown es based in New York City. After leaving Capital Access, he spent a year at Flexpoint as entrepreneur in residence, sourcing potential advantage. deals, which led to the investment in Retail Capital. *Savings based upon deposit volume, mileage, employee time and cost. Your savings may vary. Prior to funding Retail Capital, Rosett was a principal in Diversified Being your trusted local banking partner means ﬁnding ways to add value to your business. Property Group LLC, a real estate de- It’s providing tools like our Business Express Deposit, which allows you to scan and deposit veloper based in West Bloomfield checks at your desk and on your schedule. So you can run your business instead of running Township. to the bank. Trust us, that’s a big advantage for small business. Retail Capital employs five in

New York and 62 in Troy, up from Contact Tom Snapke at (586) 447-4849 to learn more. 53 when the Flexpoint deal was an-

nounced. It is enlarging its space on www.thefsb.com/expressdeposit | 866-372-1275 Kirts Boulevard from 10,000 square feet to 13,000, mostly to house its expanded risk analytics team. Rosett says the company plans How much can you save? to be at 150 employees locally in Use our remote deposit calculator to get started. three to five years. Goldman said the key for Retail Capital to quickly approve capital for small-business owners — who 20141124-NEWS--0014-NAT-CCI-CD_-- 11/21/2014 10:43 AM Page 1

Page 14 CRAIN’S DETROIT BUSINESS November 24, 2014 Finance Top team, solid plan put Talmer on fast track to growth Women biz owners’ optimism is in check BY TOM HENDERSON In February, Talmer went pub- tions that had even bigger plans zations and the outstanding CEOs CRAIN’S DETROIT BUSINESS lic on the Nasdaq exchange under then, but we were able to execute,” that led them.” Women who own businesses are the symbol “TLMR” in a $202 mil- said Provost, who is president and Talmer followed its acquisition confident about their own sales and In April 2010, First Michigan Ban- lion initial public offering. CEO of the holding company and of Citizens First Bank with the ac- corp Inc. — a 3-year-old, one-branch profits over the next six months The same day First Michigan fin- chairman and CEO of Talmer quisitions of other banks closed by while being more cautious about bank holding company in Troy ished its fundraising in 2010, the Bank. regulators — Wisconsin-based with just $75 million in assets and the economy as a whole, according bank was the winning bidder for “We got a good team cobbled to- First Banking Center, Madison to a national survey by Pittsburgh Fi- 30 employees — announced at the the $1.1 billion in assets of Citizens gether from a lot of banks in Michi- Heights-based Peoples State Bank nancial Services Group Inc., the hold- bottom of the recession that noted First Bank of Port Huron, which was gan and exceeded what everyone and Mt. Clemens-based Community ing company of Pittsburgh-based New York City financier Wilbur shut down by state and federal reg- else was able to do. The opportuni- Central Bank. PNC Bank. Ross had invested almost $50 mil- ulators. Talmer was off and run- ties in 2010 were in the failed-bank And then Talmer turned to buy- The PNC Women Business Own- lion in a capital-raising effort of ning. space. What we are able to do when ing assets out of bankruptcy. In ers survey of 154 businesses with $200 million to grow the bank. Since the second quarter of 2009, that space dried up was shift strate- November 2012, it bought First annual revenue of between $100,000 It seemed counterintuitive to Talmer has been the fastest-grow- gies away from the FDIC-assisted Place Bank of Warren, Ohio, in a and $250 million found that only 9 some that anyone would invest in ing bank in the U.S., according to deals to other strategies.” bankruptcy sale, adding $2.6 bil- percent of respondents think sales a place that had data compiled by SNL Financial, a Said John Donnelly, managing lion in assets. will decrease in coming months, been in a Charlottesville, Va.-based compa- director of the Grosse Pointe-based In October 2013, Talmer bought with 44 percent expecting sales to one-state reces- ny that provides data and analysis investment banking firm Donnelly the remaining assets of long-trou- increase and 47 percent expecting sion for years for the banking, financial services Penman & Partners: “David’s strong- bled Capitol Bancorp Ltd. of Lansing them to remain about the same. before the na- and insurance industries. est suit is he truly has surrounded in another bankruptcy proceeding, Fifty-four percent say they are tional economy In five years, Talmer grew its himself with the absolute best peo- a sale that included Ann Arbor- optimistic about the national econ- also tanked, assets by nearly 8,000 percent to a ple money can buy and delegates based Michigan Commerce Bank. omy, while 43 percent say they are but Ross and total of just over $5.6 billion as of lots of authority to them. Finally came a healthy acquisi- pessimistic. bank President June 30. “Dave and his team’s accom- tion. In August, Talmer announced As a result of that cautious take, David Provost State Bank Financial Corp. of At- First of plishments in this short period of it had agreed to acquire only 9 percent of women business thought that lanta was the second-fastest-grow- Huron Corp. of Bad Axe, its $228 mil- Provost time would put him in the Hall of owners say they plan to hire work- opportunities ing bank, increasing its assets Fame league with the likes of lion in assets and its wholly owned ers over the next six months, and 5 would arise for a bank with little more than 7,300 percent to almost First of America, Old Kent and subsidiary, Signature Bank. The deal percent plan to reduce staff. or no distressed assets on its bal- $2.6 billion. Customers Bancorp Inc. Standard Federal, which all start- is expected to close in February. Among those who don’t plan to ance sheet to buy troubled banks of Wyomissing, Pa., was a distant ed as small Michigan community When asked whether anything hire, 29 percent say they are most fo- at a big discount to book value. third, growing just over 2,000 per- banks and through dozens of ac- was in the works, Provost said, cused on improving their compa- There were, indeed, opportuni- cent to $5.6 billion. quisitions grew to be multibillion- “The banking industry is consoli- ny’s online presence, and 23 percent ties, and they paid off for the hold- No other state bank was in the dollar organizations. dating at a record pace, and we say they plan to concentrate on im- ing company, which was renamed top 20, which grew assets by an “Of course, they became PNC, hope to be part of that.” proving their customers’ experi- Talmer Bancorp Inc. — dropping the average of about 1,200 percent. Fifth Third and Bank of America, re- Tom Henderson: (313) 446-0337, ence. “Michigan” as it expanded into “The plan was to grow. There spectively. But the footprint goes [email protected]. Twitter: — Tom Henderson Wisconsin and Illinois. were other banks and organiza- back to these predecessor organi- @tomhenderson2

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November 24, 2014 CRAIN’S DETROIT BUSINESS Page 15 Finance LENDING State banks on stellar rebound a helping hand BY TOM HENDERSON from one entrepeneur CRAIN’S DETROIT BUSINESS HOW THE BANK STARS ALIGN to another. The health of Michigan banks to- How other area banks currently rank: day stands in stark contrast to how Ⅲ Four stars: Bank of Ann Arbor; Bank of Birmingham; Bank of Michigan, they were faring at the beginning Farmington Hills; Crestmark Bank, Troy; Hantz Bank, Southfield of January 2011, according to quar- Ⅲ Three and a half stars: Flagstar Bank, Troy terly data compiled by BauerFinan- Ⅲ Three stars: Auto Club Trust, Dearborn cial Inc., a Fort Lauderdale, Fla.- based ratings service. Here are the ratings for banks doing business in Michigan but are Back then, for the third straight headquartered elsewhere: quarter, there were eight banks in Ⅲ Five stars: Comerica Bank, Texas; Fifth Third Bank, Ohio; FirstMerit Bank, Southeast Michigan that got the Ohio; Huntington Bank, Ohio; KeyBank, Ohio; PrivateBank and Trust, Illinois Mike Semanco President and COO lowest rating of zero stars, and Ⅲ Four stars: Bank of America, North Carolina; J.P. Morgan Chase Bank, there were 12 in the state. New York; Charter One Bank, Rhode Island; Northern Trust, Illinois; Old Today, there’s not a single zero- National Bank, Indiana; Wells Fargo Bank, South Dakota Grow your company with star bank in the region or state. Of Ⅲ Three and a half stars: PNC Bank, Pennsylvania; TCF Bank, Minnesota our cutomieǡ ƪeie the 117 banks headquartered in the Ⅲ Three stars: Urban Partnership Bank, Illinois Ƥnancia oution. state, none received less than two Ȉ Ȁ inancin HitachiBusinessFinance.com stars on the five-star scale. There Ȉ ine of reit (248) 658-1100 are only two banks in the five- dence Bank of Detroit; First State Of the others who got zero stars, county region with ratings as low Bank of St. Clair Shores; Huron Val- Clarkston State Bank rebounded to as two stars — Oxford Bank and First ley State Bank in Milford; Level One become a four-star bank, Oxford National Bank of Howell — and only Bank in Farmington Hills; Lotus Bank and First National Bank of six statewide. Bank in Novi; Main Street Bank in Howell are back to two stars, and Do you want to In 2011, only two area banks had Bingham Farms; Sterling Bank & the assets of Ann Arbor-based Find new Reach the right people? five-star ratings — Auto Club Trust Trust in Southfield; Talmer Bank Michigan Commerce Bank were sold of Dearborn and First Michigan Generate content? and Trust; and University Bank in to Talmer. Bank of Troy, since renamed Talmer Ann Arbor. customers BauerFinancial says it evalu- Organize, summarize Bank and Trust — and there were 28 The lack of zero-star banks is in ates capital-to-debt ratios, profit and distribute ﬁ ndings? such banks in the state, many of part due to many of those banks them based in the Upper Peninsu- being closed down during the re- and loss trends, delinquent loans through Be seen as a thought leader? la, far from the frenzied lending cession by state and federal regula- and charge-offs, historical data, markets that led to the collapse of tors. Of the eight listed in January liquidity, community reinvest- Crain’s the economy. 2011, Paramount Bank, Farmington ment ratings and market versus engaging Can Help! Today, there are 39 top-rated Hills; Community Central Bank, Mt. book value. Contact Marla Wise at banks, including 11 in the area — Clemens; Fidelity Bank, Dearborn; Tom Henderson: (313) 446-0337, [email protected] or Ann Arbor State Bank; Dearborn Fed- and Peoples State Bank, Madison [email protected]. Twitter: content. (313) 446-6032 eral Savings Bank; First Indepen- Heights, were shuttered. @tomhenderson2 Invest Michigan backs early-stage tech firms

Invest Michigan announced it has invested a total of $275,000 in four early-stage technology companies. The investments are through the Michigan Pre-Seed Fund 2.0, a statewide investment fund of $6.8 million aimed at supporting high- tech early-stage companies. Funded companies also secured co-investments from private sources totaling $3.5 million, far exceeding the minimum of 1:1 in matching funds. The companies receiving funding include AdAdapted, Denovo Sci- ences Inc., A2B Bikeshare and Tetra Discovery Partners. AdAdapted is an Ann Arbor- based technology company that Focused on Business in Michigan works with mobile applications to provide relevant content to the user, helping advertisers reach their audience more effectively. At Plymouth-based Denovo, a $12,500,000 $17,700,000 $8,500,000 $3,800,000 life science/medical device compa- Senior Housing Facility Commercial Real Estate New Limited Service Hotel Mixed-Use Historic Property ny, the funds will help the company continue to provide clinical re- Construction Loan 700,000 sq, ft. of Industrial Space Construction Loan Multi-Family/Retail search centers with innovative Treasury Management Services Lansing, MI SBA 504 Program Detroit, MI automated technology diagnostics Southeast Michigan Treasury Management Services platforms for cancer monitoring and therapy selections using blood as opposed to surgical biopsies. A2B Bikeshare is a transportation startup in Ann Arbor that helps make bike sharing more ac- To learn how we can help, contact: cessible and affordable. At Grand Rapids-based Tetra Patrick Skiles, Senior Vice President Discovery Partners, a life science (734) 542-2790 leader in chemical design of in- [email protected] hibitors of phosphodiesterase en- zymes, the funds will be used to accelerate entry of the first cogni- tion drug developed by Tetra into human clinical trials. ©2014 TCF National Bank. Member FDIC. www.tcfbank.com — Tom Henderson DBpageAD_DBpageAD.qxd 10/29/2014 5:12 PM Page 1

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TURNAROUND& TRANSACTION PERFORMANCE LITIGATION RESTRUCTURING SERVICES IMPROVEMENT SUPPORT

ATLANTA CHICAGO CLEVELAND DALLAS DAYTON DETROIT FRANKFURT HOUSTON LONDON LOS ANGELES NEW YORK 20141124-NEWS--0017-NAT-CCI-CD_-- 11/21/2014 11:41 AM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 17

CRAIN'S LIST: MICHIGAN BANKS Ranked by 2014 deposits inside market

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Page 18 CRAIN’S DETROIT BUSINESS November 24, 2014

PEOPLE QUICK & EASY ARCHITECTURE Mark Farlow to director of design, IN THE SPOTLIGHT PRECAST PARKING. Hamilton Anderson Associates Inc., McLaren Health Care has named Bill Hardimon as president and CEO of Give the most to your tenants, with prime parking for Detroit, from principal, Saroki Archi- tecture, Birmingham. McLaren Medical Group, Flint. everyone. At Hannah Lofts, tenants have the luxury of Hardimon has more than 20 years of health care having prime parking no matter what. The parking CONSTRUCTION administration experience. Most recently he served as CEO deck was quickly installed as the double tees are Michelle Barton for Mid-Michigan Physicians in Lansing. He also has been CEO of Michigan CardioVascular Institute in Saginaw and ready to be installed as soon as the site is ready. to general manager, Stenco Con- the Cardiology Institute of Michigan in Flint, as well as struction LLC, holding administrative roles with Detroit Medical Center, Livonia, from Detroit Community Health Connection, Greater Detroit strategic initia- Physical Therapy and Rehabilitation, and Great Lakes tives manager, Rehabilitation Hospital. Aristeo Construc- Hardimon, 49, replaces Mark O’Halla, who remains with tion Co., Livonia. Hardimon McLaren Health Care as executive vice president and COO. Barton Hardimon has an MBA from Wayne State University and a bachelor’s degree in MARKETING human physiology from Oakland University. Tina Benvenuti Sullivan to senior vice president, NONPROFITS Franco Public Re- Jennifer Grennell lations Group, De- to executive direc- troit, from vice tor, Oakland Coun- president. ty Medical Bob Caza to Society, Novi, communications from manager, manager, North provider relations American Interna- and education, tional Auto Show, HealthPlus of Sullivan Troy, from execu- Michigan, Flint. tive director, Michelle Merrill to 9 Communica- Jurewich Laskowski assistant conduc- tions, Troy. Grennell president of brokerage health care, tor, Detroit Sym- from vice president. Michael Corbeille phony Orchestra, to executive vice Detroit, from guest Irene Jurewich to project manager, ad- president/execu- conductor, Jack- visory services division, Signature As- tive director, Si- sonville Sympho- sociates Inc., Southfield, from project mons Michelson ny, Jacksonville, manager, CBRE Inc., Dearborn. Also, to director of project Zieve Inc., Troy, Fla., and assistant Steve Laskowski management, from project manager. from vice presi- conductor, North- dent/creative di- eastern Penn- rector, McCann sylvania Philhar- RETAIL Worldgroup De- Corbeille monic, Wilkes- Beth Woerner to troit, Birming- Barre, Pa. marketing and ham. Rita Patel to direc- sponsorship di- GG Brown Laboratories Dena Meldrum to graphic design man- Merrill tor, Michigan Well- rector, The Mall ager, The Millerschin Group Inc., Ann Arbor, MI ness Council, Troy, from wellbeing at Partridge Auburn Hills, from freelance graphic Hannah Lofts Apartments KERKSTRA PRECAST strategist/independent consultant, Creek, Clinton design manager, New Baltimore. East Lansing, MI www.kerkstra.com Rochester. Township, from Jon Schulz to chief marketing officer, marketing and Interactive Media Holdings Inc., Royal REAL ESTATE business develop- Oak, from executive vice president, ment strategist, business development. B&W Marketing, Des Moines, Iowa. Woerner SERVICES David Braun to executive vice president, Jobplex Inc., Birmingham, from regional account director, Adecco USA, Bingham Farms. Paul Gazzolo to senior vice president and general manager, Gale Group Inc., Farmington Hills, part of Cengage Jeffrey Cavazos Learning Inc., from general manager Laney Cavazos of research and learning, CCH, River- Laney Cavazos to senior vice presi- woods, Ill.,a Wolters Kluwer business. dent of health care services, Medical Michael Miner to chief sales officer, Real Estate Solutions, NAI Farbman, Display Group, Detroit, from vice pres- Troy, from director of corporate ser- ident of sales and marketing, Classic vices. Also, Jeffrey Cavazos to vice Party Rentals, Los Angeles. for business Stop Human Trafficking owners Community Awareness Event

You can take steps now to help your company reduce taxable Featuring THeresa Flores, LSW, MS income before 2015. This free Survivor, author and victim advocate webinar will feature topics Learn how to recognize a victim including: Become part of the solution • Capture your profits in 2014 Invite others to join you at • Avoid unnecessary taxes now this important event • Learn techniques to improve your net worth today January 9, 2015 6 p.m. Madonna University Kresge Hall Register at crainsdetroit.com/sidesteptaxes Free and open to the public Call 734-432-5570 madonna.edu/events SPONSORED BY: POWERED BY: Sponsored by: Madonna Criminal Justice Department Madonna Office of Service-Learning City of Livonia Human Relations Commission Office for Senator Judy Emmons 20141124-NEWS--0019-NAT-CCI-CD_-- 11/21/2014 10:37 AM Page 1

November 24, 2014 Page 19 Ferdinand Samson, VP, Equipment Finance of Level One Bank and client Robert Brisley, President of Polymer Process Development BUSINESS DIARY ACQUISITIONS C/D/H, a technology consulting firm with offices in Detroit and Grand Rapids, has acquired Blue Sphere So- lutions Inc., a software development firm with offices in Grand Rapids and Ferdinand “Ferd” Samson, VP, Equipment Finance Chicago. Website: cdh.com. of Level One Bank and client Rob Brisley, DTE Energy Co., Detroit, announced it President of Polymer Process Development is purchasing the Renaissance Power Plant, Carson City, from LS Power Co., New York City. DTE expects to complete the deal in the first quarter Equipment Financing of 2015. Website: dteenergy.com. CONTRACTS Near Perfect Media, Farmington Hills, a public relations and marketing firm, Tailored for you, the entrepreneur. has added as clients The Sussman Agency, Southfield; Sellers Auto Finance up to 100% of equipment, plus soft costs. Group, Clarkston; and Institute for Health Care Innovation, Washington, D.C. Website: nearperfectmedia.com. Flexible terms. Local decision making. Qualitech, Bingham Farms, a technology integrator and software reseller, Call us was selected by Dembs Development Inc., Farmington Hills, a commercial real estate firm, to facilitate the relo- cation of all technology equipment, including server, workstations and tele- Contact Greg Wernette phone systems as well as providing a new Intel Terminal server. Website: Entrepreneur and Chief Lending Oﬀicer, 248-737-0300 qualitech.net. TSCADVertising, Saline, a marketing and advertising firm, has been awarded a media buying and promotional advertising contract by Washtenaw Community College, Ann Arbor. TSCADVertising will be responsible for development of a media plan to support brand awareness and promotional messaging. Website: wccnet.edu. EXPANSIONS Botsford Hospital, Farmington Hills, 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com opened the Botsford Mohs Surgery Commercial Banking ∫ Retail Banking ∫ Mortgage Services Center in the Botsford Cancer Center, All ﬁnancing subject to credit approval. 27900 Grand River Ave., Suite 230, Farmington Hills. Telephone: (248) 473-4828. Website: botsford.org. Denso International America Inc., Southfield, part of Denso Corp., Kariya, Aichi prefecture, Japan, has invested approximately $1.6 million to expand the Denso Logistics Michigan warehouse in Belleville. The investment added 40,902 square feet and 10 Congratulations, new jobs. Also, Denso is opening in April a new, 165,000-square-foot ship- ping warehouse in Nashville, Tenn., Michael Romaya! investing about $6.7 million and creating about 20 new jobs. Website: globaldenso.com. Honored by the Chaldean American Bar Michigan First Credit Union, Lathrup Village, has opened a new concept financial store, 21650 Gratiot Ave., East- Association as “Attorney on the Rise.” pointe. Telephone: (800) 664-3828. Web- site: michiganfirst.com. MOVES ■ Commercial, asset-based Yeo & Yeo CPAs and Business Consul- tants, has moved its office from 455 E. and real estate fi nance. Eisenhower Parkway, Suite 102, Ann Arbor, to 1450 Eisenhower Place, Ann ■ Loan restructuring and workouts, Arbor. Telephone: (734) 769-1331. Web- site: yeoandyeo.com. mergers and acquisitions. NEW PRODUCTS Altair Engineering Inc., Troy, a provider of computer-aided engineering and computing software and services, announced the launch of HyperWorks Un- limited- Virtual for Amazon Web services. HWUL-V integrates unlimited use of the HyperWorks computer-aided engineering suite with PBS Profession- al, a high-performance computing workload manager, and application- aware portals. This enables organizations to manage the entire simulation lifecycle on the cloud. HWUL-V will be offered in all Amazon Web services re- gions globally, including the U.S., Eu- rope, Brazil, Japan, Singapore and Aus- tralia. Website: altair.com. Munro & Associates Inc., Troy, a consulting engineering firm, has devel- www.varnumlaw.com oped the Design Profit 6 Sigma Defect Rate Converter App to allow engineers to easily and quickly calculate statistical process metrics for quality improvement, productivity, reliabili- Contact Michael Romaya at [email protected] ty and forecasting. The new app for Android users is available for purchase at Google Play. Website: leandesign.com. 20141124-NEWS--0020-NAT-CCI-CD_-- 11/21/2014 10:39 AM Page 1

Page 20 CRAIN’S DETROIT BUSINESS November 24, 2014

CALENDAR $20 members, $30 at the door; non- nonmembers. Contact: (248) 643-6590; well-being and engagement; and working and a benefit for Bottomless UPCOMING EVENTS members $40, or $50 at the door. Pre- website: msedetroit.org. Michael Haid, executive vice president, Toy Chest. MotorCity Casino Sound Detroit Women’s Leadership Break- registration closes end-of-day Nov. 26. 25th Annual Fiesta Hispana Gala. 6 talent management and global strategic Board, Detroit. $80. Contact: (313) 872- fast. 7:30-11 a.m. Dec. 2. City Year. Contact: (800) 427-5100; email: p.m.-midnight Dec. 5. Michigan His- workforce consultant, Right Manage- 7850; email: [email protected]; web- Women leaders discuss education re- [email protected]; website: panic Chamber of Commerce. Event ment, who’ll discuss how to align talent site: adcraft.org. form; chaired by Sandra Pierce, chair- automationalley.com. celebrates Hispanic leaders in busi- and business strategies. Detroit Mar- Detroit Economic Club Presents. 11:30 woman and CEO of FirstMerit Michi- The D Show 2014. 6-10 p.m. Dec. 3. ness, community, educational and riott Renaissance Center. $40 mem- a.m.-1:30 p.m. Dec. 11. With Anthony gan. Detroit Athletic Club, Detroit. Adcraft Club. Detroit’s creative, me- bers, $60 non-guests, $25 students. Con- Earley Jr., chairman, CEO and presi- $75. Contact: Jenna Moritz; email: government leaders. MGM Grand De- dia, entertainment and production troit. $200 individual tickets. Contact: tact: (877) 633-3500. Register at inforum dent , PG&E Corp. Westin Book Cadil- [email protected]; website: michigan.org. lac Detroit. $45 DEC members, $55 cityyear.org/Detroit/wlb. communities celebrate top talent. Ma- Barb Lange, [email protected]; web- sonic Temple, Detroit. $130 regular, site: mhcc.org. State of the Region/Annual Meeting. guests of members, $75 others. Contact: Michigan’s Got Talent Series. 11:30 (313) 963-8547; email: info@econ $65 student members. Register at 5 p.m. Dec. 10. Detroit Regional Cham- a.m.-1 p.m. Dec. 2. Automation Alley. 21st Century Workspace, Workplace, club.org; website: econclub.org. adcraft.org. Website: thedshow.org. Workforce: Microsoft, Steelcase, ber. The chamber discusses an analysis Lunch ’n’ learn event features Chad Silver & Gold Awards. 10:30 a.m.-noon Professional Development Seminar: Right Management. 11:30 a.m.-1:30 of business and economy trends. West- Sibley, business systems project man- Dec. 12. Auburn Hills Chamber of ager, Merrill Technologies Group; Networking 2.0. 8-10:30 a.m. Dec. 5. p.m. Dec. 8. Inforum. Speakers include in Book Cadillac Detroit. $25 members, $595 future members. Contact: Janelle Commerce. Awards recognize women- Danielle Bates, human resources Marketing & Sales Executives of De- John Fikany, Microsoft vice president, owned, engineering and small compa- Arbuckle, (313) 596-0340; email: jarbuck- manager, Research Into Internet Sys- troit. Gerry Weinberg, CEO of Gerry who will discuss living in a mobile and nies, plus volunteers and chamber [email protected]; website: de- tems; and Robert Cohen, executive di- Weinberg & Associates/Sandler Train- cloud-centric world; Laura Feinauer, supporters. Great Oaks Golf & Coun- rector, Jewish Community Relations ing, shares how to maximize network- project leader for brand communica- troitchamber.com/events. try Club, Rochester Hills. $35 mem- Council, discussing hiring and keeping efforts. Management Education tions at Steelcase, who will talk about Holiday in the D. 6-10 p.m. Dec. 10. Ad- bers, $40 nonmembers; add $5 ing talent. Automation Alley, Troy. Center, Troy. $35 MSED members, $50 the importance of place for employee craft Club of Detroit. Holiday net- after Dec. 1. Contact Rebecca Wiles: (248) 853-7862; email: rwiles@ auburnhillschamber.com; website: auburnhillschamber.com. Detroit Economic Club Presents. 11:30 a.m.-1:30 p.m. Dec. 16. With Lily Eskelsen Garcia, president, National Education Association. MotorCity Casino Hotel, Detroit. $45 DEC members, $55 guests of members, $75 others. Contact: (313) 963-8547; email: [email protected]; website: econ club.org. Detroit Economic Club Presents. 11:30 a.m.-1:30 p.m. Jan. 8. With Michael Keep your business Finney, president and CEO of the Michigan Economic Development Corp., and Rodrick Miller, president heading in the and CEO of the Detroit Economic Growth Corp. MotorCity Casino Hotel, Detroit. $45 DEC members, $55 guests of members, $75 others. Contact: (313) right direction. 963-8547; email: [email protected]; website: econclub.org. 2015 AutoGlow. 4:30 p.m-1 a.m. Jan. 16. Ford Motor Co. Fundraiser benefits the Children’s Center; the theme is “The Future Starts Here.” Ford Field, Detroit. $275 through Dec. 15, or $325 beginning Dec. 16. Contact: (313) 262- 7123; email: autoglow@thechildrens center.com; website: thechildrenscen ter.com/autoglow. Breakfast of Champions. 7:30-9 a.m. Jan. 21. Leadership Oakland. Kent Snyder, financial adviser, Kent Finan- cial Group, discusses “The Economics of Happiness.” MSU Management Edu- cation Center, Troy. $25 members, $36 nonmembers. Contact: (248) 952-6880; email: [email protected]; website: leadershipoakland.com. Detroit Economic Club Presents. 11:30 a.m.-1:30 p.m. Jan. 28. With Mike Pet- ters, president and CEO, Huntington Ingalls Industries. Westin Book Cadil- lac Detroit. $45 DEC members, $55 guests of members, $75 others. Con- tact: (313) 963-8547; email: info@econclub.org; website: econclub.org. Treasury Management from FirstMerit Bank Breakfast of Champions. 7:30-9 a.m. Feb. 18. Leadership Oakland. Jennifer When John talked to FirstMerit Bank’s Treasury Management team, his goal Korman, community relations, Mer- cedes-Benz Financial Services, moder- was to increase his company’s working capital. Together, they came up with a ates a panel of young professionals who talk about what it means to be a leader. MSU Management Education plan to help John effectively manage receivables, control payments, and improve Center, Troy. $25 members, $36 nonmembers. Contact: (248) 952-6880; his company’s overall cash flow. Now John has all the tools he needs to keep his email: [email protected]; website: leadershipoakland.com. business moving in the right direction — forward. CALENDAR GUIDELINES If you want to ensure listing online and be considered for print publication in Crain’s Detroit Business, please use the online calendar listings section of www.crainsdetroit.com. Here’s how to submit your events: From the Crain’s home page, click “Detroit Events” in the red bar near the top of the page. Then, TO LEARN MORE, CONTACT: click “Submit Your Entries” from PJ Danhoff, Treasury Management Sales Officer, the drop-down menu that will at 248-228-1706 or pj.danhoff@firstmerit.com. appear and you’ll be taken to our online submission form. Fill out the form as instructed, and then Follow the latest market trends firstmerit.com click the “Submit event” button at @firstmerit_mkt the bottom of the page. That’s all Member FDIC there is to it. 2411_FM14 More Calendar items can be found at www.crainsdetroit.com. 20141124-NEWS--0021-NAT-CCI-CD_-- 11/21/2014 5:39 PM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 21 WSU: Leaders looking to other medical school practice models ■ From Page 3 had run afoul of university officials and how they support the medical proposed bylaw changes that proba- tions. 8.7 percent dean’s tax based on pro- and some tenured faculty at the school.” bly won’t be voted on by the full However, one of those communi- fessional fees. medical school over management He cited the University of Colorado UPG board until January or Febru- ty members also would be appoint- Since 2009, UPG has been prof- style, efforts to improve UPG’s fi- Denver as having a good medical ary. ed co-chair of the board to serve itable, averaging about $2 million nancial performance through com- practice model. Wilson was chan- Wilson confirmed that ECG will alongside the dean, who would to $3 million a year. In 2011, the pensation changes and to change its cellor of UC Denver and chairman recommend additional bylaw also share power as co-chair. last year Crain’s received finan- governance bylaws to make the fac- of the board of the University of Col- changes, but he wouldn’t specify The formation of UPG was be- cial information from UPG, the ulty practice plan more indepen- orado Hospital. what they might be. He said he sug- gun by former dean John Criss- practice plan earned $6 million on dent. “This one (UPG) is very similar gested one bylaw change to Parisi man and formally established in revenue of $190 million. In a 2011 interview, Frank told to the University of Colorado in that would make clear the dean is 2006 by then-dean Robert Ment- This year, UPG is projected to Crain’s that one of his goals was to structure,” Wilson said. “The dif- solely responsible for hiring or fir- zer. earn about $14 million, primarily make UPG as competitive and as ference is the Colorado practice ing the UPG CEO instead of the To help fund medical school edu- from the sale of its 175,000-square- well-respected in Southeast Michi- plan is more profitable and sup- practice’s seven-member executive cation and research, UPG con- foot corporate office and ambulato- gan as the Henry Ford Medical Group ports the academic mission more.” committee. tributes an annual “dean’s tax” of ry surgery center in Troy. and the University of Michigan Faculty Wilson said ECG will look very “Wilson wants to protect the about $10 million to $12 million a Jay Greene: (313) 446-0325, Practice Plan. Frank joined WSU closely at other faculty practice dean’s input to make sure the dean year. Other practices and affiliates [email protected]. Twitter: @jay- three years ago from Ochsner Medical plans to compare with UPG and is very active in the practice plan,” of the medical school also pay the bgreene Center in New Orleans, where he Wayne State. one source said. “Some practice had been director of cardiovascular “We want to look at the relation- plans do not have the dean in a very surgery. ship other practice plans have powerful position in the plan. Roy Wilson, who became WSU presi- with their universities and see if does not want that to happen here.” dent in August 2013, said he was (UPG) is in line with best prac- concerned that UPG had lost some tices,” he said. key faculty members over the past Changing the board couple of years and had some diffi- Determining input Sources told Crain’s that Frank culty in recruiting replacement over the past year had been urg- physicians. Ken Lee, UPG’s executive direc- ing the UPG board to make sever- Congratulationsns toto One medical school faculty mem- tor, said ECG was hired earlier al additional changes to UPG’s ber told Crain’s that Frank simply this year, but wasn’t given suffi- bylaws. Martha J. Olijnyklijnyk tried to hold physicians account- cient information until May to be- “The changes were going to be able for performance. The source gin its assessment. in the opposite direction of what Top 50 Michigan Business Super Lawyersrs said some “feathers were ruffled” “There are several types of prac- Roy wanted, and they were close by Frank’s efforts to increase pro- tice plans in the U.S.,” Lee said. to being approved before (Frank) Top 25 ductivity. “Some are totally within the uni- was terminated,” said a source Women Business Michigan Super Lawyersawyers Difficulty in recruiting physi- versity; we are separate. Are there knowledgeable about the UPG cians has more to do with Wayne better ways to get best practices and board. Top 100 efficiencies?” State’s lower comparative pay One major change that sources Michigan Super Lawyers scale and Detroit’s inner-city repu- Lee said the review isn’t aimed said is still in the works is to add tation, but annual turnover of 10 at UPG itself. several additional community mem- Top 50 percent is similar to other practice “We all want to make (UPG) bers to the 28-member UPG board, Women Michigan Super Lawyersrs plans, sources said. more profitable,” he said. “We increasing the number from about “Some good people have left,” have looked at compensation six to possibly 10 members and re- Complex business litigation and automotive supply-chain disputes said Wilson, adding: “UPG is a plans and bylaws already, and ducing the number of physician de- separate organization and I have (Wilson) made some suggestions partment heads. Among other rea- 950 West University Drive, Suite 300 not delved into it. I have seen to (Parisi).” sons, the change was said to be Rochester, Michigan 48307 248-841-2200 millerlawpc.com some really good practice plans But Lee said Wilson hasn’t seen needed to comport with IRS regula-

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Page 22 CRAIN’S DETROIT BUSINESS November 24, 2014

BANKRUPTCY FEES AND PAYMENTS Bankruptcy fee examiner: Role he couldn’t pass by Jones Day Ⅲ Total expenses and fees: BY CLAIRE BUSHEY $51.8 million CRAIN NEWS SERVICE Ⅲ Paid to date: $46.1 million An army of lawyers, auditors Miller Buckfire & Co. LLC and consultants has swarmed De- Ⅲ Total expenses and fees: troit for 16 months, generating pa- $24.5 million Ⅲ perwork and arguments and Paid to date: $5,7 million billing more than $140 million in Ernst & Young LLP negotiating the largest municipal Ⅲ Total expenses and fees: bankruptcy in U.S. history. $15.6 million Now they want to get paid. The Ⅲ Paid to date: $13.7 million man playing a key role in determin- Dentons ing just how much many of them Ⅲ Total expenses and fees: will receive is Robert Fishman, $15.4 million partner at Shaw Fishman Glantz & Ⅲ Paid to date: $14.1 million Towbin in River North, Chicago. Conway MacKenzie Inc. Fishman is the case’s fee exam- Ⅲ Total expenses and fees: iner, assigned to pore over those $14.6 million professionals’ invoices and weigh Ⅲ Paid to date: $14.1 million the reasonableness of the charges. Though U.S. Bankruptcy Judge Miller, Canfield, Paddock and Stone PLC Steven Rhodes ultimately will decide whether the fees are appropri- Ⅲ Total expenses and fees: $4.3 million ate, the fee examiner’s opinion car- Ⅲ Paid to date: $4.1 million ries considerable weight. It is possibly the first time the role, a Kurtzman Carson Consultants LLC function generally found in Chap- Ⅲ ter 11 bankruptcies, has been used Total expenses and fees: in a municipal case. $3.6 million Detroit filed for bankruptcy in Ⅲ Paid to date: $2 million MANUEL MARTINEZ July 2013, the culmination of Segal Consulting Robert Fishman says he didn’t seek the assignment of evaluating Detroit’s bankruptcy fees, but that U.S. Bankruptcy decades of depopulation, financial Judge Steven Rhodes called to offer him the job. Ⅲ Total expenses and fees: mismanagement and plummeting $3.5 million tax revenue that left it owing $18.5 those fees. man has lived in Deerfield since before it’s necessary to file his re- Ⅲ Paid to date: $3.1 million billion to creditors. More than 50 He examines what services a 1982 and has no ties to Detroit. port, she said. Pepper Hamilton LLP professional services firms are in- firm provides, how long it takes to That likely helped him get the job, Outside of work, Fishman likes Ⅲ Total expenses and fees: volved in some aspect of the city’s complete them and the rates being says J. Ford Elsaesser, a past pres- skiing, golf, football and basket- $2.7 million restructuring. Most of them have billed. For example, in August he ident of the bankruptcy institute ball. Richard Mason, a partner at Ⅲ Paid to date: $2.5 million their bills examined by the city or questioned one firm’s $67,000 bill and managing partner at a firm in McGuireWoods, said they used to Lazard Freres & Co. LLC the emergency manager’s office. for monitoring and responding to Sandpoint, Idaho. play pickup basketball games in news coverage. “There would be more indepen- the mid-1980s against off-season Ⅲ Total expenses and fees: Fishman reviews the fees of the 17 $2.4 million firms directly involved in the court Fishman says he fell into bank- dence because he’s not wedded to a Chicago Bears players. Fishman ruptcy practice “by accident” after law firm or group of lawyers in De- also has a collection of roughly Ⅲ Paid to date: $2.1 million case. a stint at the Illinois attorney gen- troit, so he can probably speak 20,000 stamps, a hobby fueled by a Milliman Inc. The fees are a contentious subject, as evidenced by the angry eral’s office. The mix of dealmak- more freely,” Elsaesser says. “And love of history and geography. Ⅲ Total expenses and fees: ing, litigation and client variety if he was in a big firm people might He has been married for 35 years $1.5 million emails Fishman has received from Detroit citizens. On Nov. 7, Rhodes proved a good match for his tem- be of the view, ‘All these big firms and has two living sons in their Ⅲ Paid to date: $1.47 million approved a plan for the city to exit perament. stick together, they’re never going 20s. His oldest son died in 2006 Phoenix Management bankruptcy, but a city attorney After 13 years in private prac- to criticize each other’s fees.’ ” from epilepsy complications. Services has requested extra time to review tice, he left 155-lawyer Ross & The job is a delicate one since it The fee examiner role is the Ⅲ Paid to date: $1.1 million the fees of outside counsel, Hardies, which later merged with basically involves conducting a most prominent he has held in a Brooks Wilkins Sharkey prompting Rhodes to set a two-day McGuireWoods. He joined a small forensic audit to determine exactly big case, Fishman says, “the kind & Turco PLLC mediation session in December. real estate firm and established a what the client is paying for, said of opportunity I just felt I couldn’t Ⅲ Total expenses and fees: “It’s the only thing left in the bankruptcy practice there. He Bruce Meckler, a legal fee expert say no to,” although not because of $959,042 whole bankruptcy,” Fishman says. wanted more control over his and partner at Meckler Bulger Tilson the money. He earns $618 per hour, Ⅲ Paid to date: $888,467 “Now everybody wants to fight work, he says. That independent Marick & Pearson in Chicago. a discount off his usual rate of Shaw Fishman Glantz & about the fees.” streak is apparent in his full “You’re doing something that is $695. He says he’s not sure how Towbin LLC Fishman, 60, says he didn’t seek beard, a rarity among clean- not necessarily going to be popu- much more work the case will gen- Ⅲ Gross expenses and fees: the high-profile assignment. He shaven lawyers. lar,” he says. erate for the firm, but as of July, $815,408 had been following the Detroit Even though he doesn’t work for Yet Fishman has the credibility Shaw Fishman had billed more Ⅲ Paid to date: $693,711 bankruptcy out of intellectual in- a large law firm, Fishman has needed to call a partner and say, “I than $490,000. Barris, Sott, Denn & Driker terest, when one day he picked up built a national profile based on have a problem with your bill,” Rather, Fishman sees the assign- PLLC the phone and it was Rhodes, offer- his work with the Alexandria, Va.- said Deborah Williamson, also a ment as an important credential for Ⅲ Gross expenses and fees: ing him the job. He was appointed based American Bankruptcy Institute, former president of the bankrupt- business development. He specu- $778,318 to the case last summer to review where he was president from 1997 cy institute and managing director lates that more municipalities may Ⅲ Paid to date: $690,288 lawyers’ and consultants’ invoic- to 1998, and his involvement in the of a firm in San Antonio. At the file for bankruptcy. If that happens, Debevoise & Plimpton LLP es, question their fees when neces- United Airlines, Kmart and Peregrine same time, few of his objections be- he says, “I’ll be in a very good posi- Financial Group bankruptcies. came part of the public record be- tion to be considered for that.” Ⅲ Total expenses and fees: sary and then file quarterly re- $417,744 ports with the court disclosing A native of Danville, Ill., Fish- cause he seeks to address issues From Crain’s Chicago Business Ⅲ Paid to date: $357,552 Dykema Gossett PLLC Ⅲ Paid to date: $344,514 Foley & Lardner LLP Ⅲ Total expenses and fees: Bankruptcy: Fee review raises questions, concerns $259,994 ■ From Page 1 Ⅲ Paid to date: $244,206 Kapila & Co. debt, has received just over $6 mil- the mediation Dec. 3-4. Ⅲ Gross expenses and fees: lion on $24.4 billion billed to date. “The mayor has expressed his $226,145 That puts its total fees second only Experts familiar with the Detroit case say deep concern over the significant Ⅲ Paid to date: $191,847 to the $51.8 million that Jones Day increase (in recent months) in the Squire Patton Boggs has billed as lead counsel in the professional services firms rarely if ever amount of fees that have been Ⅲ Paid to date: $188,364 case, according to records from the have to return fees already paid to them. charged to the city. He wants to be Kilpatrick & Associates PC office of Detroit Emergency Man- sure the city is being charged a fair ager Kevyn Orr. rate,” director of communications Ⅲ Total expenses and fees: Miller Buckfire is unusual in John Roach said in a statement. $113,985 unpaid before mediation with clined to comment last week about having a mostly unpaid balance. Chief U.S. District Judge Gerald his fees, citing the mediation. Alex- “Every dollar spent on a consultant Ⅲ Paid to date: $13,985 The remaining more than 25 law Rosen. is Wiley, chief of staff for Duggan, is one that can’t be used for a city Ottenwess, Taweel & Schenk firms, restructuring advisers, me- Kenneth Buckfire, president and also said the mayor’s office would service.” PLC diators and other professional ser- managing partner of New York not discuss the Miller Buckfire fee Ⅲ Paid to date: $58,921 vices firms have about $13 million City-based Miller Buckfire, de- or any other specific charges before See Next Page 20141124-NEWS--0022,0023-NAT-CCI-CD_-- 11/21/2014 7:11 PM Page 2

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 23 Consultants’ reports reveal Mich. Sports Hall of Fame hires ad agency to help boost revenue

BY BILL SHEA ly because the preferred location, surprising Ch. 9 expenses CRAIN’S DETROIT BUSINESS downtown’s First National Building, was sold and the new The nonprofit Michigan Sports owners weren’t interested. iner the firm contends the issue Hall of Fame said last week it has The Michigan attorney gener- BY CHAD HALCOM was complex and actually took ad- hired Troy-based advertising al’s office began investigating the agency AFA Krause “to create CRAIN’S DETROIT BUSINESS A single attorney ditional hours that weren’t billed. hall of fame in 2009 after it was A Jones Day attorney, Mary brand development programs tipped off that the nonprofit A law firm representing De- from the city’s lead L. Hale, billed $4,252 on April 4 to and new revenue streams.” failed to renew its state license or troit’s retirees billed more than drive from Columbus, Ohio, to De- Financial details of the relation- file its required federal financial $125,000 over six months to moni- law firm charged troit to collect documents and in- ship were not disclosed. A mes- disclosure paperwork. Then-At- tor and respond to various media terview the “custodian” and then sage seeking additional details torney General Mike Cox halted reports. between $375 and drive back. Another employee, and an accounting of the hall’s a planned sale of the hall’s in- A single attorney from the city’s J.E. Callaway, apparently charged current finances was left with the ductee plaques. He sent a letter to lead law firm charged between $450 per trip to $1,787.50 to make the same road organization’s outside media rela- the hall in 2010 that ordered fi- $375 to $450 per trip in early spring travel by car service trip for document collection on the tions handler, Ken Droz. nancial reporting requirements to travel by car service between same day. A statement said the agency New revenue streams have in- Detroit and Cleveland, due to early between Detroit and Miller Canfield Paddock and was “now active in expanding the cluded online auctions of pack- morning or late-running meetings. Stone PLC agreed after a fee exam- hall’s efforts to recruit sponsor- ages (trips, games and meals WXYZ-Channel 7 also reported Cleveland. iner review of its own expenses in ships and will also manage ad with hall inductees) and sports last week that another attorney the eligibility hearing that it sales for the hall’s multiple plat- collectibles. That began in 2011. billed $450 for the time to walk from reviewing and advising on press would “not … charge the city for forms, including events, ticket The hall has 270 2-by-2-foot, 47- a downtown law office to the U.S. reports prepared by a client, other more than two lawyers appearing sales and website. In addition, the pound inductee plaques that District Court building on tasks do not, such as drafting the in court as local counsel in a non- firm will assist the hall’s efforts to were displayed in Cobo Center Lafayette Boulevard and wait in entire press report and reviewing active role” and to reduce another find a permanent home. until that facility’s $299 million line to pass through a security newspaper articles on the bank- attorney’s charges by 50 percent. The hall’s last major capital renovation. The plaques have checkpoint and gain admittance. ruptcy case,” Fishman said in at The firm marked down its fees and campaign, begun in early 2005 been put in storage and offered to The attorney, Claude Montgomery, least three separate reports on me- expenses for that period about with a goal of $5 million to $7 mil- the city’s four pro sports teams represents the official committee of dia expenses of Dentons. $14,500 after that review. lion, fell apart almost immediate- for display. retirees at the Dentons law firm. He “The fee examiner thus does not Miller Canfield partner later cut the charge in half, accord- believe that the fees charged for Amanda Van Dusen of the firm’s ing to WXYZ. the (firm’s) media activities are public law group charged $485 to Some expenses from profession- reasonable.” leave two voicemail messages by al services firms are easier to un- David Heiman, an attorney for phone regarding matters in the De- derstand than others in Detroit’s the city and partner at Jones Day, troit Water and Sewer Department in $18 billion bankruptcy court case, also billed for several car service October 2013. and fee examiner Robert Fishman trips between Detroit and his of- Miller Buckfire was questioned of Chicago-based Shaw Fishman fice in Cleveland in March and about “a duplicate airfare charge Glantz & Tobin LLC has occasionally April of this year, referencing ear- and excessive charges for use of a taken firms to task over line items ly or late-running meetings he was car service rather than a commer- that helped build toward a $146 attending, according to itemized cial cab service,” but also ex- million tally of professional fees. Jones Day billing reports. plained those expenses during a For example, Dentons reported Here are some more examples of phone call in August. expenses of between $14,000 and the costs driving up bankruptcy The company also billed $28,000 per month between Janu- costs: about $1,055 for a dinner for seven ary and June for the unspecified Jones Day billed approximate- people, including two of its own media monitoring, according to ly $168,000 for nine of its attorneys employees, at the Townsend Hotel fee examiner reports, but began and other professionals to attend in Birmingham in October 2013. agreeing to a 40 percent markdown the eight-day eligibility hearing be- Milliman Inc., an actuary re- of those fees in April, after Fish- fore U.S. Bankruptcy Judge Steven tained by the city, has been asked man decided they were excessive. Rhodes in October. The firm agreed several times by the examiner to The firm has reduced about $25,200 to write down about $14,740 in ex- consider providing a discounted from that expense through June, penses for a senior partner and as- billing rate, but “continues to de- the most recent fee examiner re- sociates who attended. cline” to do so. port available. The firm apparently took Ernst & Young was questioned “Although certain media activi- more than 213 hours to prepare a at least once about having several ties may fall within the scope of single legal brief for the court, but of its professionals attending the providing legal services, such as after questioning by the fee exam- same meetings or conference calls

From Previous Page iner review unless any balances lion, the largest unpaid balance as of are disputed, so the unpaid bal- mid-November was $5.7 million still Experts familiar with the De- ances today are either bills so re- owed on Jones Day’s $51.8 million in troit case told Crain’s that profes- cent they haven’t received even a legal bills to date. Then came $1.9 sional services firms rarely if ever partial payment yet, or holdbacks million to Ernst & Young LLP, followed have to return fees already paid to for the months since June that by $1.6 million owed to Kurtzman Car- them in the course of bankruptcy, Fishman isn’t finished reviewing. son Consultants and $1.3 million out but U.S. Bankruptcy Judge Steven Orr spokesman Bill Nowling said of $15.3 million in legal bills for Den- Rhodes has the authority to order any adjustment to professional fees tons, the law firm representing the that if any firm’s fees prove unrea- in mediation would likely come in committee of retired city employees. sonable or excessive. those two areas, rather than by re- Lazard Ltd., the investment bank- About $115 million in fees have funding past payments the compa- ing consultant to the retiree com- been paid to various firms since De- nies have already receivved. mittee, also had an unpaid balance troit filed for bankruptcy in July “Those are probably the two fac- of about $230,000 of $2.4 million, 2013, including $111.7 million to tors of what you can go back to and but it was not immediately clear if firms that are subject to a quarterly try to adjust down,” he said. the firm has submitted its own fi- review by fee examiner Shaw Fish- “These are all professionals, who nal restructuring fee as Miller man Glantz & Towbin LLC. The last follow procedures not just for this Buckfire has done. such review, submitted Nov. 5, cov- case but in all bankruptcies. Judi Mackey, director of global ers the quarter ending June 30. “The holdback is under an as- communications for Lazard, said Fee examiner Robert Fishman sumption that, if a discrepancy she had no comment on the fees. has been reviewing those fees in comes up, it isn’t going to fall in Dave Petrou, global public commu- quarterly reports since a court or- the order of 80 percent, it’s going to nications manager for Jones Day, der last fall put more than 15 firms’ be modest. This mechanism was did not return phone calls seeking fees under review and subject to a created so you don’t get $4 million comment about the fee mediation. 15 percent holdback. of legitimate bills held up over a Chad Halcom: (313) 446-6796, Those holdback funds are re- (single) $50,000 questionable one.” [email protected]. Twitter: leased for payment after the exam- After Miller Buckfire’s $18.7 mil- @chadhalcom 20141124-NEWS--0024,0025-NAT-CCI-CD_-- 11/21/2014 6:38 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS November 24, 2014 Obama move unlikely to impact Snyder plan for state The Obama administration’s CEO of Grand across the various state agencies,” business in Michigan. where the employment level is at outline is unlikely to have much Rapids-based said Dave Murray, deputy press In both cases, the investor and or above 150 percent of the nation- effect on Gov. Rick Snyder’s immi- Eastern Floral, as secretary for Snyder. “Bing has the investment opportunity are al unemployment rate. There are gration plan. director of the tremendous ideas and has been vetted by the federal immigration 433 such areas in the state. If the Snyder created the Office for New office. Goei emi- meeting with and working with services division. Investors are investment is not in one of these, Americans in February to boost the grated to the people around the state as they checked to make sure the money the investment has to be at least $1 educated immigrant population in U.S. with his build the foundation for what his used to invest is theirs and was not million. Michigan. family in 1960 office can and will do.” given to them or obtained illegally. Snyder’s office also continues to The office, which serves as a from Indonesia Snyder also petitioned the feder- The company that the investor lobby federal officials for 50,000 clearinghouse for when issues re- through the al government to create a wants to bring to Michigan and/or EB-2 work visas over five years for lated to immigration arise, contin- Goei Netherlands. statewide EB-5 regional center, the Michigan companies that are those with advanced degrees, sole- ues to coordinate with state de- In March, he which it did in just 77 days. seeking investors are also vetted ly for the city of Detroit. hired Karen Phillippi as the office’s partments and the various ways A foreign investor can enter the to ensure they meet underwriting Discussions continue with fed- deputy director. they touch immigration policy in program in one of two ways: be standards. eral officials, but an agreement “There’s been a considerable the state. paired with an investment oppor- The investment must be at least hasn’t been reached, Murray said. amount of information gathering Snyder hired Bing Goei, former tunity in the state or open a new $500,000 if it is in a distressed area — Dustin Walsh

Immigration: Experts disagree on local impact of Obama plan ■ From Page 1 Undocumented immigrants be- tech industries,” he said. positions of highly skilled roles in Citizenship and Immigration Services. means locally. ing able to live more openly in The chamber wants to see an in- the U.S.,” she said. “Too many high- An EB-2 usually requires a job “Our fortunes are not going to metro Detroit and elsewhere are a flux of immigrants who invest in ly educated job positions are vacant offer and a labor certification is- change because Obama has created net benefit, Koelsch said. the station, “bring needed talent because there are not enough quali- sued by the Department of Labor to a three-year window for certain seg- “Each person, whether high- or and skills to the Michigan work- fied workers within our borders ensure that the foreign work does- ments of the ‘illegal’ immigrant less-skilled, who benefits from place” and “fill unfilled jobs with and immigrant students who study n’t displace a qualified U.S. work- pool,” said Metzger, the retired this action is a consumer. People Michigan companies,” Baruah said. here find difficulty in receiving per- er, the agency said. founder of Data Driven Detroit who who know their futures and feel Still, there likely will be a posi- mission to stay and work.” spent nearly 40 years compiling in- secure are more willing to buy tive impact at The H-1B is targeted at highly formation and statistical analysis houses, cars, and everything else the lower end of skilled workers — usually scien- Other issues locally. they need for a long-term future in the economic tists, engineers, or computer pro- The president’s speech also “In fact, while our community. That spending spectrum as grammers — that the U.S. deems in touched on other aspects of immi- significant, the and investment has a significant more undocu- short supply, and it allows them to gration policy, Michigan and lo- positive ripple effect throughout mented immi- stay up to six years. H-1B visa hold- and his pledge cal numbers af- our local and regional economy,” grants legally ers also can apply for a permanent to expand a high fected are rela- Koelsch said. enter the work- alien resident status, known as the tech job training tively small Alexandra LaCombe, partner force, he said. green card. program for im- compared to oth- and head of the Troy office for im- “The agricul- This year, the number of H-1B migrants has er areas in the migration law firm Fragomen, Del Baruah ture industry, visas was capped at 65,000, with an- piqued the inter- country.” Rey, Bernsen & Loewy PLLC, said the service in- other 20,000 for applicants with ad- est of Steve To- Metzger Instead, the Obama’s new guidelines on immi- dustry, such as hotels and retails, vanced degrees. bocman, direc- president’s plan gration are a positive for employ- should be impacted in a positive “The current H-1B quota is an ar- tor of Global is an opportunity to bring more at- ers. way. Those are not unimportant at tificial number that has nothing to Detroit, a non- tention to the immigrant commu- “This isn’t necessarily a pathway all,” he said. do with the economy, the market or Tobocman profit-funded nity already in metro Detroit and for illegal immigrants to become le- Baruah questioned the presi- the needs of U.S. employers, and study of the immigration effects on the assets that they bring, said gal in the U.S., but a path for them dent’s timing of his order, calling that needs to change,” she said. metro Detroit’s economy. Metzger, now mayor of Pleasant to work here legally,” LaCombe it “a little odd” and termed the “Our government must recognize The president said the “Optional Ridge. said. “This will plan as largely aimed at “immedi- that the number of highly skilled, Practical Training” initiative popu- “I see this as beneficial for the in- no doubt help ate humanitarian issues that are highly qualified workers admitted lar with the tech sector will be ex- dividuals involved but having little employers look- important to (Obama).” into our country each year must be panded and extended, but specifics effect on the local business/entre- ing to fill posi- adjusted by market demands. won’t be known until worked out by preneurship climate,” he said. “Of tions.” While the H1-B visa program in the the Department of Homeland Security. course, there will be a number of However, Visa concerns U.S. remains unexpanded, other The OPT program allows cer- folks who will now feel more com- Michigan has so LaCombe echoed Baruah’s con- countries welcome highly skilled tain types of international stu- fortable ‘going public.’ Within this few illegal im- cern about the lack of details about workers with open arms.” dents from U.S. colleges to work at group, there will undoubtedly be migrants, La- high-tech immigration. She said In January, Gov. Rick Snyder American companies for a year af- some entrepreneurs who can come Combe said, she was disappointed the presi- said he would ask Washington to ter graduation. In 2008, President forward.” that while the dent didn’t include expansion of provide the city of Detroit with Bush extended the limit to 29 Metzger endorses Global De- LaCombe ruling is benefi- the H-1B non-immigrant visa pro- 50,000 EB-2 visas over five years — months for graduates in science, troit’s various initiatives and sug- cial it will have a marginal effect gram in his plan, something she and so far has gotten no response. technology, engineering and math- gests a regional welcoming initia- on the workforce. said hurts the economy. The EB-2 immigrant visa is for ematics (STEM) fields. tive of local governments and Michigan in 2012 had 120,000 un- “It is hindering our nation’s eco- professionals with advanced de- Further expansion will help ethnic chambers to develop attrac- documented immigrants, according nomic growth that there are not grees and individuals with excep- Global Detroit’s local efforts. tions plans. to the latest data available from the enough available work visas for im- tional ability in the sciences, arts, “It’s in line with what we’re try- “Highly educated immigrants Pew Research Center’s Hispanic migrants who seek to fill the vacant or business, according to the U.S. ing to do on the ground,” Tobocman will continue to migrate to com- Trends Report published on Nov. 18. said. munities with strong schools, safe- That’s up from 25,000 in 1990, or Global Detroit in 2011 was one of ty and other city services,” he said. a 380 percent increase. “I see this as beneficial for the individuals involved the co-creators of the “Michigan Additionally, the city of Detroit Undocumented immigrants ac- Global Talent Retention Initiative” has to overcome “the negative vibe count for about 1.6 percent of but having little effect on the local business/ that aims to connect Michigan’s that the city has given to immi- Michigan’s labor force, according 28,000 international students with grant groups for years,” Metzger to Pew’s data. entrepreneurship climate.” | Kurt Metzger unmet talent needs of Michigan said, adding that Detroit must do Most undocumented immigrants companies. more to develop its Office of Immi- in Michigan came from Mexico (56 It links such students from 32 grant Affairs. percent), followed by India (14 per- Michigan colleges with more than He also recommends the city cent) and China (6 percent). 60 employers. Most of the students and Detroit Public Schools have Sandy Baruah, president and are in the STEM fields. more interaction with Detroit’s CEO of the Detroit Regional Chamber, There was a Michigan GTRI con- Latino community, improving the said he missed the president’s ference in Detroit on Friday at- relationship between foreign- speech but has been catching up on tended by more than 350 interna- owned businesses and local resi- subsequent reports and analyses. tional students, Tobocman said. dents, and capitalizing on Wayne In what he’s read so far, he does- State University ranking third n’t see much that aligns with the among Michigan colleges for in- chamber’s immigration concerns. A blunt voice ternational students. “We’re really focused on the eco- Longtime demographer Kurt Met- Bill Shea: (313) 446-1626, nomic impact issues, the positive zger was blunt in his assessment of [email protected]. Twitter: impact of immigration on high- the president’s plan and what it @bill_shea19 BLOOMBERG 20141124-NEWS--0024,0025-NAT-CCI-CD_-- 11/21/2014 6:38 PM Page 2

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 25

www.crainsdetroit.com Immigrants bolster Detroit as D.C. debates EDITOR-IN-CHIEF Keith E. Crain GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] ASSOCIATE PUBLISHER Marla Wise, (313) 446- BY CHRIS CHRISTOFF and keep highly skilled profession- 6032 or [email protected] BLOOMBERG NEWS als and university students, and EXECUTIVE EDITOR Cindy Goodaker, (313) 446- persuade some to move to Detroit. 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- An influx of 16,000 immigrant To that end, Snyder this year cre- 1622 or [email protected] Latinos big enough to prompt the ated the Michigan Office for New DIRECTOR, DIGITAL STRATEGY Nancy Hanus, opening of 17 taquerias in five (313) 446-1621 or [email protected] Americans. MANAGING EDITOR/CUSTOM AND SPECIAL years has spared southwest Detroit “There are opportunities if we PROJECTS Daniel Duggan, (313) 446-0414 or from the city’s downward spiral. [email protected] can get specifically designated SENIOR EDITOR/DESIGN Bob Allen, (313) 446- In and around Hamtramck, a 2- visas for people willing to invest in 0344 or [email protected] square-mile enclave surrounded by SENIOR EDITOR Gary Piatek, (313) 446-0357 or Detroit and work in Detroit,” di- [email protected] the city, almost 10,000 immigrants rector Bing Goei said. WEB EDITOR Kristin Bull, (313) 446-1608 or from Bangladesh and Yemen bol- [email protected] Snyder’s request for 50,000 De- RESEARCH AND DATA EDITOR Sonya Hill, (313) ster the economy of a town once troit visas is innovative, although 446-0402 or [email protected] known for its Polish heritage. A WEB PRODUCER Norman Witte III, (313) 446- the illegal-immigration fight over- 6059, [email protected] few miles away, Chaldeans who shadows it, said Margie McHugh of EDITORIAL SUPPORT (313) 446-0419; YahNica once thronged north Detroit want Crawford, (313) 446-0329 the Migration Policy Institute in NEWSROOM (313) 446-0329, FAX (313) 446- to revive their presence there with Washington. Obama is at odds with 1687 TIP LINE (313) 446-6766 housing for refugees fleeing the Is- Republican lawmakers who say his REPORTERS lamic State in their homeland of BLOOMBERG Small businesses line Bagley Avenue in Mexicantown. An influx of 16,000 executive order will amount to Jay Greene, senior reporter: Covers health care, Iraq. amnesty for law-breakers. insurance, energy utilities and the environment. “I’m not sure many other people immigrant Latinos and a commercial corridor where 17 taquerias opened in five (313) 446-0325 or [email protected] years have spared Southwest Detroit from the city’s downward spiral. “That has sucked all the oxygen Amy Haimerl, entrepreneurship editor: Covers would take the chance that I took,” entrepreneurship and city of Detroit. (313) 446- out of conversations about mod- 0416 or [email protected] said Bangladesh native Khurshed of the population, according to the left swaths of the city abandoned, ernizing our immigration sys- Chad Halcom: Covers litigation and the defense Ahmed, 32, a naturalized citizen most recent data from New York’s blight-ridden and poor. By 2012, tem,” said McHugh, director of im- industry. (313) 446-6796 or [email protected] Tom Henderson: Covers banking, finance, who five years ago opened a Fiscal Policy Institute, a research or- the property-tax base, adjusted for migration integration. technology and biotechnology. (313) 446-0337 or restaurant to tap the local market ganization. inflation, had fallen to 21 percent McHugh said a better strategy is [email protected] Kirk Pinho: Covers real estate, higher education, of Muslims craving halal pizza. Detroit has about 35,000 foreign- of its 1950s value, according to a re- to target visas for specific jobs. In Oakland and Macomb counties. (313) 446-0412 or While debate rages in Washing- born residents out of an estimated port by Tobocman. Canada and Australia, local gov- [email protected] Bill Shea, enterprise editor: Covers media, ton, D.C., over what to do with an es- 688,000, according to Global De- “Solid economic evidence sug- ernments compete for visas to meet advertising and marketing, the business of sports, timated 11 million unauthorized im- troit. In the metropolitan region, gests that immigrants dispropor- and transportation. (313) 446-1626 or economic needs, McHugh said. [email protected] migrants, Detroit and Michigan two-thirds own their homes and tionately contribute to economic “It’s hard to envision circum- Dustin Walsh: Covers the business of law, auto Gov. Rick Snyder want to attract about half have become citizens. growth, employment and wage suppliers, manufacturing and steel. (313) 446- stances that highly skilled people 6042 or [email protected] foreign-born settlers to move past a Those who live in the city find gains — including for local who could go anywhere else in the Sherri Welch, senior reporter: Covers nonprofits, record bankruptcy and repopulate housing bargains. The median sales African-American populations,” services, retail and hospitality. (313) 446-1694 or U.S. would go to Detroit,” she said. [email protected] an emptied landscape. Foreign-born price of Detroit homes in October according to a 2010 Global Detroit Those aren’t the only people ADVERTISING professionals, business owners and was about $18,000, according to Re- report. who can help, said Mexico native refugees have helped sustain De- alcomp, a Farmington Hills real-es- Groups that help Chaldean SALES INQUIRIES (313) 446-6052; FAX (313) and Detroiter Sergio Martinez, a 393-0997 troit throughout the loss of two- tate listing service. That compares refugees want to buoy Detroit’s 26-year-old restaurant manager SALES MANAGER Tammy Rokowski thirds of its population since 1950. with $145,000 for the four-county north side, where members of the whose parents brought him to the SENIOR ACCOUNT EXECUTIVE: Matthew J. President Barack Obama on metropolitan area. Christian sect first settled in the Langan U.S. when he was 5. ADVERTISING SALES Christine Galasso, Jeff Thursday announced an order Southwest Detroit is the most no- 1960s. The Chaldean American Cham- “High-skill immigrants get the Lasser, Joe Miller, Sarah Stachowicz that would shield as many as 5 mil- table example of vitality, with its ber of Commerce has plans for a De- CLASSIFIED SALES MANAGER Angela Schutte, breaks,” he said. “You’re ignoring (313) 446-6051 lion people from deportation. contingent of immigrants and about troit “village” that includes hous- the immigrants you already have CLASSIFIED SALES Lynn Calcaterra, (313) 446- 30,000 U.S.-born Latinos and healthy ing for those fleeing militants in in your city, the ones who are 6086 business district. As the city strug- Iraq and Syria. DIGITAL MARKETING MANAGER Attractive effect spending money every day, going Jennifer Chinn gled to replace broken streetlights, a to work, building families here.” AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo Snyder, a 56-year-old Republican, neighborhood business group mus- An estimated 22,000 unautho- EVENTS MANAGER Kacey Anderson has asked Obama to issue 50,000 tered $6.4 million in grants to re- Encouraging immigration SENIOR PRODUCER FOR DIGITAL/ONLINE rized immigrants live in Wayne PRODUCTS Pierrette Dagg visas over five years to highly place them and spruce up its main Detroit leaders are receptive and County, which includes Detroit, SENIOR ART DIRECTOR Sylvia Kolaski skilled and entrepreneurial immi- street, Vernor Highway. the project is seeking investors and according to a new report by the SALES SUPPORT Suzanne Janik, YahNica Crawford PRODUCTION MANAGER Wendy Kobylarz grants who agree to live in Detroit. Around the Hamtramck border, state and city approval, said Martin Migration Policy Institute. The city this year created a task dozens of businesses, many immi- Manna, chamber president. Manna PRODUCTION SUPERVISOR Andrew Spanos Martinez was in the U.S. illegally CUSTOMER SERVICE force to assist the foreign-born. grant-owned, contrast with blight- said 90 percent of the city’s until 2012, when he was granted MAIN NUMBER: Call (877) 824-9374 “People are already moving to the ed and abandoned buildings that Chaldeans have moved out since two-year status under Obama’s De- or [email protected] city,” Detroit City Council member scar neighborhoods nearby. 2003, though members still own ferred Action for Childhood. Mar- SUBSCRIPTIONS $59 one year, $98 two years. Raquel Castaneda-Lopez said. “It’s a Foreign-born residents tend to most convenience and liquor tinez plans to own the home he Out of state, $79 one year, $138 for two years. question of how you streamline the be younger, more educated and stores. About 30,000 Chaldean Outside U.S.A., add $48 per year to out-of-state rents for $700 a month in a tattered rate for surface mail. Call (313) 446-0450 or process and make it easier.” more likely to start businesses refugees have fled to Michigan neighborhood near Detroit’s Latino (877) 824-9374. The 18th-largest U.S. city ranks than Michigan’s general popula- since 2007, Manna said. hub. The house needs a new roof, SINGLE COPIES: (877) 824-9374 135th in the number of foreign-born tion, Tobocman said. He said Detroit’s cheap land REPRINTS: (212) 210-0750; floors, kitchen and neighbors. or Alicia Samuel at [email protected] residents, said Steve Tobocman, di- “When immigrants feel wel- makes it advantageous for redevel- Where others see blight, Mar- TO FIND A DATE A STORY WAS PUBLISHED: rector of Global Detroit, a nonprofit come, they’re very good at reach- opment. Crime and substandard tinez sees opportunity. (313) 446-0406 or e-mail [email protected] agency that promotes legal immi- ing out to others and multiplying schools don’t. CRAIN’S DETROIT BUSINESS IS PUBLISHED BY “A lot of people in my communi- CRAIN COMMUNICATIONS INC. gration as an economic catalyst. their numbers,” he said. “Imagine if we could repopulate ty see it as half-full,” said Mar- CHAIRMAN Keith E. Crain Still, in 2007 they accounted for Numbers are what Detroit the city,” Manna said. “But the tinez, who wants to own a restau- PRESIDENT Rance Crain 11 percent of the economic output needs. Its population has fallen challenges are enormous for secu- TREASURER Mary Kay Crain rant and become a lawyer. “They Executive Vice President/Operations in a four-county area that includes from 1.8 million in 1950, according rity and schools.” don’t just leave the city where they William A. Morrow Detroit while making up 9 percent to the U.S. Census Bureau. That’s Snyder’s focus has been to lure Executive Vice President/Director of Strategic grew up.” Operations Chris Crain Executive Vice President/Director of Corporate Operations KC Crain Vice President/Production & Manufacturing Dave Kamis Chief Financial Officer Thomas Stevens Chief Information Officer Survey: Employers giving raises, bonuses again Anthony DiPonio G.D. Crain Jr. Founder (1885-1973) ■ From Page 3 Mrs. G.D. Crain Jr. Chairman (1911-1996) EDITORIAL & BUSINESS OFFICES: 1155 Gratiot Ave., Detroit MI 48207-2732; nies seeking to retain talent was “Nondirect financial elements it part of the total compensation In fact, ASE found that wage (313) 446-6000 profit-sharing, followed by team- seem to be very important to em- package. So when the company freezes have finally thawed: Just Cable address: TWX 248-221-5122 AUTNEW DET based incentives. What hasn’t ployees,” Leider said, who has 76 pitches employees, it tells them the 6 percent of those surveyed ex- CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the changed, however, is the budget employees. “That ties around op- total number, including bonus, as pect to use that tactic to control third week of October, and no issue the fourth week of December by Crain Communications Inc. for salary increases. Most employ- portunity. You have to be competi- what they can earn. costs in 2015 compared with 67.8 at 1155 Gratiot Ave., Detroit MI 48207-2732. ers expect a 3 percent increase in tive from a financial perspective “That may seem nuanced,” Lei- percent in 2009. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send salaries in 2014 and plan for the — things like salaries and bonuses der said, “but people get really ex- “I see a lot of growth,” said Wolf. address changes to CRAIN’S DETROIT BUSINESS, same baseline in 2015. — but we also give people the feel- cited. They understand that there “I’m growing, my clients are grow- Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in It takes more than money to hire ing that there will be continued op- is a part they have to work for and ing. They are adding employees, U.S.A. and motivate the right employees, portunity. They don’t want to be a a part that is guaranteed.” buying buildings. It’s a tight mar- Entire contents copyright 2014 by Crain Communications Inc. All rights reserved. however. It also takes a culture of cog in the system.” That’s a significant change ket for talent.” Reproduction or use of editorial content in any opportunity and fun, said David Lei- GSTV, which provides digital from the throes of the recession The ASE salary survey is avail- manner without permission is strictly prohibited. der, CEO of Royal Oak-based Gas entertainment video at gas pumps, when companies were imple- able free to members and for $525 Station TV, which has been on a hir- offers a bonus structure to all of its menting wage freezes, not finding to others by emailing ing spree. salaried employees and considers ways to increase compensation. [email protected]. 20141124-NEWS--0026-NAT-CCI-CD_-- 11/21/2014 5:40 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS November 24, 2014 Compuware deal: Gilbert gets a home, Meridian room to grow

part of Detroit, Compuware, which in Septem- BY KIRK PINHO Meridian Health and Quicken CRAIN’S DETROIT BUSINESS the city’s renew- Loans are set to become the ber announced an agreement to al, and its histo- largest tenants in the Compuware sell the company to Chicago-based You have to go back before 2000 ry.” Corp. headquarters, pending the private-equity firm Thoma Bravo to find a sale of a single downtown Bunia Parker, building’s sale. LLC for $2.5 billion, will take a sig- office building more expensive principal of De- nificantly smaller footprint. than the one announced last week troit-based real It was not known how many of by a trio of Detroit heavyweights: estate firm Sum- Compuware’s more than 800 De- Dan Gilbert, the Cotton family and mit Commercial troit employees will remain in the Compuware Corp. LLC, said Meridi- building. The company employs Gilbert’s Bedrock Real Estate Ser- Cotton an having an 2,975 worldwide. vices LLC and the Cottons’ Meridian ownership stake If the deal closes as expected by Health will split in the building is better than the the end of the year, it would be the the expected $142 company’s original plan to build a largest single-building sale in the million cost to new headquarters downtown, a region this year and the second- purchase the 1.1 plan that was scrapped this year. largest in terms of price, behind million-square- “They are get- only the $177.5 million sale of the foot Compuware ting a Class A Southfield Town Center to New York Corp. headquar- building for a City-based 601W Cos. in May. ters downtown second-genera- and an attached Covisint Corp., a company Com- tion price,” puware spun off last September in parking deck Parker said. with about 2,600 a $64 million IPO, and Plante Moran Gilbert Robin LLC are also tenants in the build- spaces. Sean Cot- Schwartz, public ton, Meridian chief administrative ing, which was constructed be- relations direc- tween 2000 and 2003 for about $350 officer, said the deal is a 50-50 part- tor for Bedrock, nership. million. Covisint is expected to said Bedrock’s move out of the building; its lease CoStar Group Inc., a Washington, Parker discussions with D.C.-based real estate information expires March 31. Plante Moran Meridian, which will move about recently opened an office in the service, has no record of any one 400 employees into the building Compuware building as well. central business district office starting in the spring, took place DAVID HALL Gilbert owns more than 60 prop- building selling for more than $140 over several months. erties — buildings and parking million — although there have been Gilbert said deals with other wasting resources. Square — were scrapped earlier decks — totaling more than 9 mil- downtown Detroit buildings includ- partners are also in the works. Meridian will take about 330,000 this year due to changing econom- lion square feet. He has spent more ed in larger, more expensive nation- “We are in discussions with sev- square feet, making it the build- ic factors and the cost of new con- than $1.5 billion purchasing and al portfolio sales, and build-out eral other non-affiliated partners ing’s largest tenant, just ahead of struction. renovating them, according to a costs. For example, General Motors for various forms of acquisition and Quicken, which will use about Steve Morris, principal of Farm- Quicken Loans tally. Co. purchased the 5.5 million- development with both in-state and 300,000 square feet after it occupies ington Hills-based Axis Advisors LLC, His largest office buildings are square-foot Renaissance Center in out-of-state groups whom we an additional 60,000 square feet. said both new Compuware building the First National Building (823,000 1996 for $76 million but spent $500 strongly welcome,” he said in a Compuware, which has about owners will receive significant cash square feet); Chase Tower (525,000 million renovating its buildings. statement emailed Thursday to 500,000 square feet now, will lease flow from things like tenant leases square feet); the former Detroit Me- For Gilbert, the founder and Crain’s. “We believe that signifi- about 130,000 square feet. and revenue from parking deck dia Partnership building (404,000 chairman of Quicken Loans Inc. and cant interest and investment from Andy Farbman, CEO of South- ownership. square feet); One Woodward (360,000 Rock Ventures LLC, the Compuware others is a clear sign of progress in field-based Farbman Group, called Meridian plans to move into the square feet, soon to be renamed building gives him a home he can the redevelopment of downtown De- the purchase “one of those rare op- building from two downtown loca- Fifth Third Bank at One Wood- call his own after leasing space troit.” portunities where both sides win.” tions — One Kennedy Square and the ward); and the Chrysler House there since 2010. Selling the headquarters has long “You’ve got one company (Com- Gilbert-owned 1001 Woodward (351,000 square feet). For Meridian, the Detroit-based been part of Compuware’s “corpo- puware) that gets rid of excess building — by the end of 2015 and managed care company, the deal rate transformation plan,” CEO space and another (Meridian) that expand into more space by 2019, U.S. Securities and Exchange Com- gives it enough space for its Bob Paul said in a statement last goes into the excess space,” he when the company is expected to mission filings last week said an en- planned expansion over the next week. said. “And you certainly couldn’t double its employee roster to 2,000. tity called 1000 Webward LLC is ex- five years — and a key equity stake For years, the company has been replicate that product for the price Meridian manages Medicaid pected to purchase the building that will generate revenue from op- criticized by some of its institution- they are buying it for.” and Medicare plans in Michigan, and parking deck. erations of one of downtown’s al investors for having built an ex- Last year, Meridian announced Illinois and Iowa with more than It’s not yet clear what new name newest and most prominent office pensive modern office tower for it would build a 320,000-square-foot 540,000 covered lives that is grow- the building will take, but it is ex- buildings. about $350 million and continuing headquarters downtown devel- ing annually at a double-digit clip. pected to be renamed after the sale “We wanted equity in the build- to own it. The building was among oped by Livonia-based Schostak The company also owns a pharma- closes. ing where we plan to have our head- the factors cited during a takeover Bros. & Co. Plans for the $111 mil- cy benefit management company. Kirk Pinho: (313) 446-0412, quarters because when you ‘own,’ bid launched in 2012 by Elliott Man- lion, 16-story building — on a 1.96 Cotton said the company will in- [email protected]. Twitter: you’re there for the long term — 30, agement Corp., a New York City- acre parcel bounded by Monroe, vest $24 million on things like ren- @kirkpinhoCDB 40, 50 years,” Cotton said in a state- based activist hedge fund that ac- Bates and Farmer streets and ovations and furniture in its build- Jay Greene and Tom Henderson ment to Crain’s. “We want to be a cused Compuware management of Woodward Avenue and Cadillac out of the six floors it will occupy. contributed to this report.

Adell: Broadcaster to buy Radio Disney station, spread Word ■ From Page 3 “The Word Network appears to Adell Broadcasting Co.’s broker, Inc. in 2002 for $3 million, and it ments. his graduation from Arizona State have made a terrific business deal. Elkridge, Md.-based Patrick Com- switched to the children-oriented Based on estimates provided by University in 1988 to help him estab- They should be able to recoup munications, announced the $3 mil- Radio Disney format, according to the FCC, which Adell shared with lish WADL. It initially broadcast their $3 million and start generat- lion WFDF sale on its website on the radio industry tracker Crain’s, he expects to get $170 mil- infomercials and home-shopping ing profits relatively quickly,” Nov. 18. Michguide.com. lion for WADL’s portion of the lo- programming before adding reli- Friedman said via email. “This Radio Disney, which used This is Adell’s first foray into ra- cal UHF airwaves. The station, gious content, along with chil- gives them a multiplatform rev- Williamsburg, Va.-based media dio, and comes at a time when he’s which he and his now-deceased fa- dren’s shows, music videos and enue strategy in their home mar- brokerage firm Schutz & Co., said in exiting the ground-based televi- ther launched in 1989, would go off classic movies. ket. Theoretically, they will have August that it intended to sell 22 sion industry. the air three months after the auc- It airs a mixture of older and no programming costs as they al- AM and one FM station as part of Adell told Crain’s in October tion sale is finalized. newer syndicated shows, many ready stream their programming its effort to move to a digital con- that he plans to sell his television Adell’s parents applied for a aimed at an urban African-Ameri- online. This gives them another tent business. channel, Clinton Township-based television license in 1978, and it can audience. outlet for that stream, on which WFDF went on the air in 1922 WADL TV-38, in the FCC’s 2015 auc- was awarded 10 years later, he The Word Network is a separate they can sell radio advertising.” under the call letters WEAA, and tion of the UHF over-the-air broad- said. He said his father, Franklin company from WADL. While Disney paid to technically reori- changed to its current letters in cast spectrum. Mobile wireless Adell, borrowed $3 million to build WADL broadcasts in eight South- ent the station’s signal from Flint- 1925. The station’s format over the providers need more airwave the station, and it went on the air east Michigan counties, The Word focused to aimed at the metro De- years has been adult contempo- bandwidth to satisfy customer de- in May 1989. Network reaches a potential 3 bil- troit market, something that rary, Top 40, news-talk, and adult mand, and the 600-MHz spectrum Franklin Adell, who established lion people around the world. required the purchase of two other standards. used by stations such as WADL is himself with a family-owned auto- Bill Shea: (313) 446-1626, stations to take off the air so the sig- Then-owner Cumulus Broadcast- coveted because it penetrates ob- motive supplier of doorjambs [email protected]. Twitter: nal space was cleared for WFDF. ing Inc. sold the station to ABC Radio stacles such as walls and base- decades before, hired Kevin after @bill_shea19 20141124-NEWS--0027-NAT-CCI-CD_-- 11/21/2014 6:37 PM Page 1

November 24, 2014 CRAIN’S DETROIT BUSINESS Page 27 RUMBLINGS WEEK ON THE WEB FROM WWW.CRAINSDETROIT.COM, WEEK OF NOV. 15-21 Cigar lounge goes mobile Happy’s Pizza Have cigar lounge — will HONORING CRAIN’S 40 UNDER 40 Obamacare travel. Two entrepreneurial founder convicted brothers have turned a 1974 Airstream Land Yacht RV into a mobile cigar lounge. of tax crimes adviser pact Brian and Jason Maynard — appy Asker, the both business owners in founder of Farming- their own right — co-found- H ton Hills-based Hap- ed Brighton-based Unbolted py’s Pizza, was convicted of Entertainment Inc. and invest- under fire conspiracy and tax crimes ed $50,000 to buy the in a scheme to conceal mil- Michigan Republi- or state Rep. Tom McMillin, Airstream and renovate it into the Cuban Missile Lounge. lions of dollars in income can legislator has who asked the department from the pizza chain. A called for the state for more information on The mobile lounge in- The government said a Department of Community Gruber’s involvement. cludes wall-to-wall Brazilian cherry wood flooring, hard- portion of the unreported in- AARON ECKELS Health to investigate a Some Republicans are come was shared among Jane Harper (center), director of information technology risk $481,050 contract awarded to calling on Gruber to return wood wall panels, seating for management and internal audit for Henry Ford Health System 12-15 people, big-screen tele- franchise owners. Asker said Lansing Charter Township- some or all of the more than and Health Alliance Plan, poses with her family as one of the visions, a mini-refrigerator the indictment involved based Health Management As- $6 million in estimated fees honorees Nov. 19 at the Crain’s 40 under 40 awards event at and stocked humidor with a “only a handful” of the com- sociates because of the work he and his associates have MGM Grand Detroit. The annual event includes 40 honorees rotating selection of cigars at pany’s 100 franchise loca- Massachusetts Institute of collected from federal and and past classes selected for their accomplishments. a price range of $8 to $25. tions. He added he was “sur- Technology economist state governments. Gruber Rental costs range from $500 prised and disappointed” by motive News reported. Jonathan Gruber — who also had no comment Friday. Ⅲ Southeast Michigan’s for four hours to $800 for the verdict and will “consid- Ⅲ The U.S. health system consulted on the Affordable total health benefit costs eight hours. er options for an appeal.” based in Livonia created by Care Act — did on it. for active employees are Passport back for holidays The brothers are market- the 2013 merger of Catholic projected to increase only Over the past several ing the lounge for bachelor Health East and Trinity Health Just after Black Friday’s 2.9 percent in 2015 as em- weeks, Republicans nation- and bachelorette parties, ON THE MOVE announced it will be named mall and power shopping ployers continue to change wide have criticized Gruber weddings, tailgate parties, Ⅲ Trinity Health. It has been center sprees, Small Busi- Rob Casalou was named benefit plans, according to for remarks he made several charity fundraisers, festivals known since the merger as ness Saturday is up this president and CEO of Ann Mercer’s 2014 National Sur- years ago, and recently made and private corporate CHE Trinity Health. week — and it has a Detroit Arbor-based St. Joseph Mercy vey of Employer-Sponsored public, that the Affordable events. They hope to ac- Ⅲ Blue Cross Blue Shield of twist. Health System, a six-hospital Health Plans. Care Act passed Congress in quire five to 10 additional Michigan signed agreements To promote the day, Ameri- group that is part of Livo- Ⅲ University of Michigan 2010 because of “lack of trans- Airstreams to base them in with Brighton-based LifeSe- can Express, the creator of nia-based Trinity Health. He political science and public parency” and the “stupidity Michigan hotspots and fran- cure Insurance Co. and Lin- Small Business Saturday, re- replaces Garry Faja, who will policy professor Robert Axel- of the American voter.” chise the Cuban Missile coln, Neb.-based Assurity cently posted a video featur- retire Dec. 31 after 32 years rod received the National The U.S. Senate approved Lounge concept. Life Insurance Co. to offer an ing a host of Detroit small- with the system. Medal of Science award the Affordable Care Act in a expanded portfolio of indi- business owners, from Rachel Ⅲ Common Ground Presi- from the White House. 60-40 vote, and the House ap- vidual supplemental insur- Lutz at The Peacock Room to dent and CEO Tony Rothschild Ⅲ The Detroit Symphony proved it 219-212. No Repub- 12 lauded by Black Chamber ance products in 2015. Don Studvent, owner and chef plans to retire next Septem- Orchestra is collaborating licans voted for the bill. Pres- The Michigan Black Cham- Ⅲ Beaumont Health at 1917 American Bistro. ber, capping a 25-year career on “Symphony in D,” a ident Barack Obama signed ber of Commerce hosted its opened its first medical of- The video also announces at the Bloomfield Hills-based symphony celebrating the the law in March 2010. second annual Sankofa fice in Detroit at the Re- the return of the Detroit crisis and mental health ser- — sounds of Detroit. It will According to Kelly Niebel, a Black Business Awards naissance Center Riverfront Small Business Passport, a vices agency. . premiere at Orchestra Hall spokesman for Health Man- Gala last week. Family Medicine will initial- new holiday tradition. Cre- Ⅲ Richard Ludwig left as se- next November. agement, Gruber was hired The awards honor 12 en- ly be staffed by a family ated last year by Ryan Hoop- nior vice president in the Ⅲ With car insurance by the consulting company trepreneurs, executives, medicine doctor who will er (one of Crain’s 20 in their Southfield office of Colliers In- rates for city residents con- in 2012 along with Milliman to and business and academic serve primary care needs of 20s winners this year) and ternational Inc. and joined sidered among the highest provide advice on the effect leaders. The Sankofa hon- adults and children, but Pure Detroit, the passport of- Farmington Hills-based For- in the nation, the Detroit of the Michigan health in- orees were: Beaumont officials said the fers shoppers a discount of tis Commercial LLC as senior City Council approved a con- surance exchange. The ex- John Barfield Sr., founder, clinic will be expanded. 10 percent to 25 percent at a director of investment sales. tract for a firm to study change, which ultimately Bartech Group LLC (lifetime Ⅲ Detroit-based Henry Ford host of shops in the city. At Ⅲ Nigel Francis, former whether it’s feasible for De- was set up by the federal gov- achievement award); Daniel Health System unveiled a each location, shoppers get state of Michigan car czar, troit to create its own auto ernment, offers customers Loepp, president and CEO, new patient gown that aims a stamp in their passport. was named vice president of insurance company. an online method to pur- Blue Cross Blue Shield of Michi- to put the wraps on a big Last year, 18 local retail- corporate planning for De- Ⅲ A U.S. judge refused to chase health insurance and gan (corporation of the source of patients’ grumbles ers were involved; this troit-based American Axle & put a stay on a court chal- receive a federal subsidy year); Forrest Carter, profes- — a lack of rear coverage. year, 23 signed on. Manufacturing Inc. lenge to Michigan’s emer- based on income. sor and director, Michigan Dearborn-based Carhartt Inc. gency manager law, but dis- Said Janet Jones, owner of Ⅲ Outgoing Wayne Coun- Of the $481,050 fee, Gru- State University Entrepreneur- will manufacture them, The missed most of the case save Source Booksellers, who is ty Executive Robert Ficano ber’s firm was paid $275,000 ship Institute (5 Pillars of Associated Press reported. for a claim that it is dispro- participating in the passport Commerce award); Greg appointed two county repre- for a report completed in Ⅲ American Laser Skincare portionately applied to gov- program again this year: Jackson, president and sentatives to the Wayne Coun- February 2013. of Farmington Hills closed erning African-Americans. “The passport lets us tell oth- CEO, Prestige Automotive ty Airport Authority. Nabih Ayad “He has a micro-simula- 100 clinics. Crain’s was told Ⅲ Wayne County Communi- er people about other busi- Group LLC (black business of is a partner at Canton Town- tion model that takes a look employees were notified of ty College District officials nesses. We get customers Karl Gregory the year); , retir- ship-based Nabih H. Ayad & As- the closure when company say they are talking with at health insurance policies that we wouldn’t necessarily ing professor emeritus and sociates PC; Michael Garavaglia CEO John Harlow told them the developers of the for- and the effect they have on have because they are using economist, Oakland University is founder of Farmington the firm was closing be- mer state fairgrounds in the distribution on health their passports.” (scholar of the year); Horace Hills-based public relations cause a key investor decid- Detroit about creating a care spending, and public Free passports are avail- Rodgers, retired attorney, en- firm Capital Relations LLC. ed to pull out. campus presence there. and private health care sec- able at Pure Detroit’s loca- trepreneur and economic Ⅲ The Ann Arbor-based Ⅲ The not-yet-built De- tor costs,” Niebel said. tions in the Renaissance development professional Michigan Venture Capital Asso- troit Red Wings arena was Niebel said Health Man- Center, Guardian Building (unsung leader); John Dingell, OMPANY NEWS C ciation will honor Mike named to host the second- agement has not been con- and Fisher Building start- member, U.S. House of Rep- Ⅲ Ann Arbor-based St. Finney, MEDC president and and third-round games for tacted by Community Health ing Friday afternoon. resentatives (citizen of the Joseph Mercy Health System CEO, with a lifetime the 2018 NCAA Men’s Bas- year); Mike Rogers, member, signed an agreement to sell ketball Tournament. U.S. House of Representa- achievement award as well 164-bed St. Joseph Mercy Port Ⅲ The Federal Emergency tives (citizen of the year); as three local companies — Management Agency added 20 Louis Green, president and Huron Hospital to Prime Health- Ann Arbor-based ForeSee CEO, Michigan Minority Sup- care Services, which agreed to Results Inc., Plymouth Town- more days to the application plier Development Council (ad- invest $20 million into the ship-based ProNAi Therapeu- period for metro Detroit vocate of the year); Sid Taylor, hospital over three years. tics, and Detroit Labs — for flood and storm damage aid. founder and chairman, SET Ⅲ Saying “we are deeply recent achievements. The new registration dead- Enterprises LLC (black suppli- sorry,” an executive for Taka- line is Dec. 14. er of the year); Suzanne ta Corp., the Tokyo company OTHER NEWS Shank, president and CEO, that produced faulty airbags BITUARIES Siebert, Brandford Shank & Co. linked to the deaths of mo- Ⅲ In their annual fore- O (woman of the year); and Ta- torists, apologized at a U.S. cast, University of Michigan Ⅲ Arnold Michael Ford, for- Senate hearing as two law- COURTESY OF FRANKLIN PUBLICITY tiana Grant, president and economists project the U.S. mer CEO and president of Brothers Jason (left) and Brian Maynard show off their restored CEO, Infused PR (next gener- makers told of a sixth fatali- economy to grow by its T&M Asphalt Paving in Mil- vintage bus, now the traveling Cuban Missile Lounge. ation award). ty they say is related, Auto- highest rate in 10 years. ford, died Nov. 14. He was 70. DBpageAD_DBpageAD.qxd 11/12/2014 3:52 PM Page 1

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THE DREAM: OWNING YOUR OWN BUSINESS There’s having your dream, and then there’s dealing with the day-to-day realities to make it happen. That’s called owning your own business. Verizon can help you handle those realities. See why more businesses THE REALITY: choose Verizon Wireless than any other wireless carrier. HIRING. PAYROLL. MANAGING SUPPLIERS. FOR THE DREAM AND THE REALITY, CHOOSE VERIZON. AND MAKING THINGS HAPPEN ON THE GO.

AMERICA’S LARGEST AND MOST RELIABLE 4G LTE NETWORK

1.800.VZW.4BIZ | vzw.com/get300 | vzw.com/storelocator | #LiveTheDream

Eligible devices include all 4G Smartphones and 3G iPhone 4s. Bill credit may take up to 2-3 billing cycles to appear. Credit will be removed from account if line is suspended or changed to non-qualifying price plan after activation. Offer expires 12/31/2014. Activation fee/line: Up to $35. IMPORTANT CONSUMER INFORMATION: Corporate Subscribers Only. Subject to Cust or Major Acct Agmt, Calling Plan, & credit approval. Up to $350 early termination fee. Offers & coverage, varying by svc, not available everywhere; see vzw.com. Limited time offer. While supplies last. Restocking fee may apply. DROID is a trademark of Lucasfilm Ltd. and its related companies. Used under license. © 2014 Verizon Wireless. I1118