Brain Drain, State Tax Income Are on the Line Policy Changes Weighed As Some Biz Owners Cash Out

Blue Cross Blue Shield launches new product for companies with out-of-state employees, Page 3 SEPTEMBER 5 - 11, 2016 Small-biz leaders: Brain drain, state tax income are on the line Policy changes weighed as some biz owners cash out

By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine About the bill LANSING — e scenario: A State Sen. Wayne Schmidt small-business owner in Michigan, (pictured), R-Traverse City, in April close to but not necessarily at retire- introduced Senate Bill 893, which ment age, meets with a nancial ad- would viser to consider selling the compa- deduct from ny. He decides to move to Florida the state’s — in part for the climate and in part income tax because the Sunshine State has no RENDERINGS COURTESY THE KINGSLEY INN “income income tax — and buy a condo with An artist’s rendering of the Doubletree by Hilton Bloomeld-Detroit, currently the Kingsley Inn, shows the updated hotel. received from the tax savings. the sale of a Rob Fowler calls them cashed-out business that entrepreneurs. is reinvested And he says he has seen it happen within that A landmark monarch three times in roughly eight years, by same tax former members of the board of the year into another business that Small Business Association of Michi- does business in this state.” The gan, of which he is president and exemption would apply to tax years gets a new moniker CEO. beginning aer Dec. 31, 2015. “ ey sold their business, which is always a happy thing,” Fowler said. The bill has been referred to the Kingsley Inn owners plan renovation this fall “What’s unhappy about it is out of Senate’s banking and nancial Rob Fowler: Michigan goes the combination of institutions committee. Schmidt By Sherri Welch year and a half after buying it, to ex- Explainer type for their money — born and raised here said he hopes it gets a hearing this [email protected] plore the interest they were getting three lines — (and) their experience. And, you fall. e owners of a local landmark ho- from buyers around the country. But know, lots and lots of cashed-out en- tel, the Kingsley Inn in Bloomeld then they had a change of heart. trepreneurs invest in other business- Hills, have a new ag, look and restau- Elia and Shiman are also partners es, but not if they’re not around to Livingston, Midland and Missaukee rant in the works for the site long in 800 Parc LLC, the operator of the watch their investment.” — had net business gains. known as a meetup spot in the tony restaurants at Detroit’s Campus Marti- e issue, he said, is the Wayne County’s 29,982 business- suburbs. us. “low-hanging fruit” confronting his es are 9.2 percent fewer than in 2006. e Kingsley name will come down “At the end of the day,” Elia said, “we association’s board as it looks deeper Oakland and Macomb counties lost when the hotel hoists the Doubletree decided a long-term investment in the at ways to increase entrepreneurship 4.2 percent and 4.8 percent of their by Hilton ag a year from this fall, fol- (Kingsley) property made more sense — and their success — in the state. businesses, respectively, over the lowing a more than $10 million reno- A two-story lobby is among the rather than a short-term gain from a e group is studying state policy ar- same decade. vation to completely update the hotel’s major renovations planned at the potential sale because of the rst-class eas to develop recommendations on To Fowler, the issue is of losing interior and exterior. Kingsley Inn. location of the site,” which is within ways Michigan leaders could re- owners’ wealth and expertise in or- e hotel will also welcome a new the city center district of Bloomeld move barriers to starting a business: der to mentor and support startups. restaurant, Joe Muer Seafood, early next year. Hills, on Woodward Avenue near Long Lake Road. from access to capital, to access to Sen. Wayne Schmidt, R-Traverse Zaid Elia, CEO of Birmingham-based real estate “We feel ... what the hotel has to oer cannot be rep- markets, to recruiting talent. City, introduced the bill. He hopes it company The Elia Group, and Matthew Shiman of the licated anywhere on Woodward,” he said. e problem is particularly acute will get a hearing when the Legisla- Birmingham-based Alden Development Group, the ho- While the hotel’s name will shift to Doubletree by in Michigan, a state that has lost a net ture reconvenes this fall. tel’s owners, had put it on the market last fall, roughly a SEE KINGSLEY, PAGE 18 18,000 businesses since 2006. e “It is a long-term (eort) just try- starkest drops were in the rural north- ing to gure out how do you keep ern Lower Peninsula, as Bridge Mag- capital in here and how do you keep azine reported last month based on young entrepreneurs, that next gen- data from the U.S. Bureau of Labor eration?” Schmidt said. “One of my Statistics. Only three counties — SEE TAX, PAGE 16 Bonds 101 As Michigan’s regional and private colleges dig deep during a building boom, they learn it’s © Entire contents copyright 2016 hard to get good grades on their credit ratings. Special Report, Page 9 by Crain Communications Inc. All rights reserved crainsdetroit.com Vol. 32 No 36 $2 a copy. $59 a year. NEWSPAPER 2 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 MICH-CELLANEOUS itary personnel, MLive.com reported. MICHIGAN n A Chicago developer has with- e estimated $2 million project will INSIDE drawn plans for a 12-story hotel and lux- grow the factory by 16,000 square feet. THIS ISSUE ury apartments on a long-vacant down- n Seven Lansing-area residential BANKRUPTCIES ...... 15 town block in East Lansing, the Lansing complexes have agreed in a federal CALENDAR ...... 15 State Journal reported. e project, lawsuit settlement to no longer ban CLASSIFIED ADS ...... 15 which was to cost more than $50 mil- families with children from renting KEITH CRAIN...... 6 lion, will have to be revised — if the de- one-bedroom apartments, MLive. OPINION ...... 6 OTHER VOICES ...... 6 BRIEFS veloper still thinks it’s worth building. com reported. e federal lawsuit ac- PEOPLE ...... 14 e package is co-sponsored by e cause is a requirement, buried in an cused a rental manager and three cor- Senate committee OKs RUMBLINGS ...... 19 state Sens. Kowall; Ken Horn, R-Fran- ordinance on building heights adopted porate entities that own the complexes autonomous vehicle bills WEEK ON THE WEB ...... 19 kenmuth; and Rebekah Warren, in February, that for any multifamily of discrimination against families with A four-bill package that would regu- D-Ann Arbor. Kowall said Senate Bills rentals built in B-3 zones downtown, 50 children. Evidence was gathered by late the driverless car industry in 995-998 could be taken up in the Sen- percent of the development must be the Fair Housing Center of Southeast- COMPANY INDEX: Michigan cleared a state Senate com- ate as soon as Tuesday. owner-occupied condos or apartments ern Michigan, which had agents pose as SEE PAGE 18 mittee last week, setting up a possible Lindsay VanHulle for senior citizens. It’s the latest snag in prospective renters asking for one-bed- vote by the full Senate this week. more than a decade of failed eorts to room units, according to the U.S. Attor- would prevent voters from supporting e legislation, introduced in May, Level One to expand transform blighted properties between ney’s oce. ose who said they want- all candidates from one party with one won unanimous support from the the Peoples Church and Abbot Road ed to rent a unit with their child were mark. Schuette says a response is Senate’s economic development and into Grand Rapids market near Michigan State University. turned away. Under the terms of the needed by Sept. 8 so ocials can start international investment committee Farmington Hills-based Level One n Free People, a retailer known for settlement, the defendants will pay printing ballots. e lower courts at a hearing at a facility of Auburn Bancorp Inc. announced last week its American “bohemian chic” apparel $20,000 to victims and $5,000 in civil ruled that the GOP-sponsored law Hills-based Nexteer Automotive in that it will enter the Grand Rapids and accessories, will soon open its rst penalties to the U.S. government. would disproportionately burden Saginaw County, said Sen. Mike Kow- market, its rst expansion into West West Michigan store, at Breton Village n Michigan Attorney General Bill black voters. all, R-White Lake Township, a Michigan. in Grand Rapids, MLive.com reported. Schuette asked the U.S. Supreme n Roger Curtis has left as president co-sponsor of the bills. On ursday, the bank was to ac- Philadelphia-based Free People has Court to intervene so a new ban on of Michigan International Speedway to e bills would allow autonomous quire the lease of a vacant bank branch one Michigan location, at the Somer- straight-party voting can take eect for pursue other opportunities, track vehicles on state roads for any reason, property on Burton Street on Grand set Collection in Troy. the November election, AP reported. owner International Speedway Corp. not only for testing; create the Michi- Rapids’ east side. Over the next several n Global pharmaceutical giant Pfizer e emergency request led Friday announced. Curtis, 49, had been pres- gan Council on Future Mobility within months, the 7,000-square-foot build- Inc. has taken the next step in its pro- says a federal district judge and the 6th ident of the track near Brooklyn, Mich., the Michigan Department of Transpor- ing will be remodeled, with the branch posed $146 million expansion to its U.S. Circuit Court of Appeals wrongly for the past 10 years. ISC, based in tation to recommend policies to sup- opening scheduled for early Decem- manufacturing plant in Portage, Mi blocked the law when “all Michigan Daytona Beach, Fla., said its COO, Joie port the industry; set standards for con- ber. In the coming weeks, Level One Biz reported. e City Council has grant- has done is adopt an approach that 40 Chitwood, will oversee MIS opera- nected vehicle networks, including plans to hire about 12 banking profes- ed the drugmaker a $14.5 million tax other states already follow.” e ban tions until a replacement is found. data collection and sharing informa- sionals from the Grand Rapids area. abatement that the company will use for tion gathered from crashes; authorize In the past year, Level One bought a new work center and warehouse. Correction in statute the planned American Center Farmington Hills-based Bank of Michi- n For the rst time in nearly 70 for Mobility at the old General Motors gan and opened a branch in down- years, Rockford-based Wolverine World n A company prole in the Cool Places to Work feature in the Aug. 29 issue Co. Willow Run facility; and extend lia- town Detroit. e bank has about Wide Inc. plans to expand the Big Rap- should have said that Goodman Acker PC, which ranked 34th on the list, has bility protections to licensed mechan- $1 billion in assets. ids footwear factory that produces many 32 employees. Also, its senior partners are Gerald Acker and Barry Goodman. ics who work on automated vehicles. Tom Henderson of the boots and shoes issued to U.S. mil-

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AHLM>=;R @HE=LIHGLHKL LBEO>KLIHGLHKL F>=B:LIHGLHK CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 3 Blue Cross Road o ers new care plan, games new fee

By Jay Greene [email protected] Blue Cross Blue Shield of Michigan has joined forces with 35 other Blues plans to o er large self-funded companies with employees in other states a new way to reduce health insurance costs and improve quality for workers by coordinating care with a national network of the Blues’ best physicians. Self-funded employers in Michigan with employees in other states will LARRY PEPLIN be charged a spe- With the Palace of Auburn Hills in the middle of the I-75 construction mess, Detroit Pistons management has been developing strategies to educate fans and o er real-time cial assessment data on tra c and alternative routes during the upcoming basketball season. per employee to fund the pro- ow Brook Amphitheatre. gram, called Blue Palace will rely on technology, enticements to help at stretch of highway sees about 120,000 to- Distinction Total Pistons fans battle I-75 construction tra c snarls tal vehicles, north- and southbound, every day, Care (BDTC). e Alina Pabin: Fee MDOT said. e Palace sees about 890,000 peo- fee will appear on goes back to By Bill Shea regains popularity and works toward again aver- ple for events annually. their Blue Cross incentive [email protected] aging $1 million a game in revenue, which is the e most obvious tactic is to encourage fans to invoice in April. payments. e Palace of Auburn Hills is deploying a mix National Basketball Association average. leave earlier for games and events, said PS&E “ is is a new of the latest technology and old-school com- Palace Sports & Entertainment management CEO Dennis Mannion. fee they will pay — a provider-deliv- mon sense to soften the impact on fans who began developing various strategies to educate Once games begin next month, the Palace will ered care management charge,” said have to navigate the I-75 reconstruction tra c fans, and to o er real-time data on tra c and use discounts on concessions to help encourage Alina Pabin, director of value partner- nightmare to Detroit Pistons games and con- alternative routes. Planning began three years fans to arrive sooner, such as the “Power Hour” ships at Detroit-based Blue Cross. certs. ago, and has been re ned this year as the Michi- from 6 to 7 p.m. that includes reduced drink, food “ e fee is mostly a pass-through. e A worry is that tra c snarls — vehicles are gan Department of Transportation in August be- and merchandise prices and a chance to meet fee goes directly back to incentive pay- limited to a single lane at times — could result in gan its 20-year, $1 billion reconstruction of I-75 former players in the North Pavilion. More dining ments” to physicians. fans arriving late to games, and instead of buying with two years of work between Coolidge High- options have been added or upgraded in recent Pabin said Michigan employers will concessions and merchandise, rushing to their way and South Boulevard just south of the Pal- years, beyond the traditional hot dogs and na- only be charged based on the number seats. Reduced fan spending is a concern for the ace. e construction work also a ects the chos that are event staples, in a bid to make the of out-of-state employees who have Palace and Pistons as the improving young team PS&E-run DTE Energy Music Theatre and Mead- SEE PALACE, PAGE 16 SEE BLUE CROSS, PAGE 17 Ex-BoM exec to help Vision Investment By Tom Henderson Mark and Kevin Denha and Omar and “Saber and I began talking early [email protected] Saber Ammori, sold to Gauge Capital a this summer,” said Sarafa, who still Mike Sarafa, until recently the pres- minority but substantial interest in has several months left on a consult- ident of the Bank of Michigan, has Wireless Vision Holdings LLC, which ing contract with Farmington Hills- been recruited to help run a new fam- owns and runs 270 T-Mobile retail based Level One Bank, which closed in ily investment o ce in Bloom eld stores across the country and is the February on its acquisition of the Hills. wireless provider’s largest exclusive re- Bank of Michigan. “We’ve known e o ce, Vision Investment Part- tailer. each other our whole lives. We got ners LLC, launched in August with a “ at created a windfall, and they serious a month ago, and two weeks fund of more than $15 million. It is an needed to create a way to deploy re- ago I moved in.” outgrowth of a deal with a private eq- sources,” said Sarafa. Prior to co-founding the Bank of uity rm in Southlake, Texas, a year at result is Vision Investment, Michigan in 2005, Sarafa was presi- ago. And it has its sights set on deals which is based in Wireless Vision’s dent of the Farmington Hills-based with retail, food and real estate ties, headquarters at the northeast corner Associated Food Dealers of Michigan, an among other segments. of Big Beaver Road and Woodward Av- association made up largely of Chal- TOM HENDERSON Where did the seed money come enue. A 5,000-square-foot space is be- dean and Arab-American retailers. Mike Sarafa, managing director of Vision Investment Partners LLC in Bloom eld Hills, from? Two pairs of Chaldean brothers, ing built out on the ground oor. SEE SARAFA, PAGE 18 in his future o ce, which is under construction.

MUST READS OF THE WEEK First season for new Lions regime Plan B’s Front-o ce and roster changes mark runup to WSU Physician Group, DMC devising backup team’s 2016 debut, Page 7 plans during troubled contract talks, Page 17 4 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 M-1 ocials: QLine on track for early 2017 opening Fundraising for additional operational dollars in works

By Bill Shea [email protected] Woodward Avenue in Detroit should be free of orange barrels and open to tra c in the days before anksgiving as construction of M-1 Rail’s QLine streetcar project enters its nal months, project organizers said last week. Behind the scenes, the project is seeking to raise millions of dollars for a reserve fund intended to cover operations for the 6.6-mile loop’s rst 10 years of passenger service, which is expected to begin in early 2017 — pos- sibly as soon as April, if the system passes more than 1,000 state and federal tests. e project so far has raised $187.3 million in a mix of private, public and foundation money to cover capital, MICHAEL LEWIS II A look at construction on Woodward Avenue in Detroit as the QLine rail system is operational and other costs, M-1 Rail being built. CEO Matt Cullen said during a brief- ing with reporters ursday afternoon M-1 also could seek donations from cars rely more on battery power — at the system’s Penske Technical Cen- the corporate world, more advertising driving up the project cost. Changes to ter headquarters in New Center. commitments or use other funding the aerial wiring related to the cars M-1 said it has $21.4 million mechanisms to bank the rest of the also contributed to the modest cost in- stashed away for operations. Based on operations money. crease. an estimate of $5.8 million to run the Detroit-based Quicken Loans Inc. M-1’s plan is a mostly curbside system annually, backers would need spent $5 million on naming rights with xed-rail streetcar circulator system, to raise as much as $37 million to cov- M-1 Rail earlier this year to call the co-mingled with tra c, with 20 sta- er operational costs through 2027. streetcar the QLine. Quicken Loans tions at 12 stops between Grand Bou- at’s the year M-1 has agreed to turn Chairman Dan Gilbert is M-1 Rail’s levard and Congress Street. It will run over the system to the public Regional co-chairman and has invested $10 in the median at its north and south Transit Authority of Southeast Michi- million into the project, which is being ends. e cars will move at the speed gan, which will ask voters in Wayne, funded by a mixture of corporate, of tra c, and an end-to-end trip is Oakland, Macomb and Washtenaw foundation and public money. predicted to take about 25 minutes, counties in November to approve a Raised or committed so far is $187.3 M-1 said. property tax that would raise $3 bil- million, including $142 million for It will run every day of the year ex- lion over 20 years to pay for improved construction and the cars. cept during the anksgiving Day pa- mass transit, including the QLine’s Ridership in the rst calendar year rade. Questions have arisen about the operations. is expected to reach 1.8 million, and 5 plan to run the system only until 11 M-1 not having the full 10 years million within ve years, M-1 Rail p.m., meaning it would be unavailable worth of operational funds banked COO Paul Childs said. He noted that for downtown nightlife patrons. Childs spooked those involved in the RTA, the numbers are rides, not unique said M-1 will continually re-examine and that organization in recent weeks numbers of passengers. Organizers its operational hours and adjust them, opted to push back by three years the predict 5,000-8,000 riders a day, with a and how many trains are running, so date when it would assume control of basic one-way fare of $1.50. Yearly the system is most e cient. the streetcar line. and other types of passes, including M-1 also said ursday that track Cullen said M-1 has seven years’ fare cards that link to other transit sys- installation is 83 percent complete. worth of operational funding covered. tems, still are being worked out, Woodward, a slalom of construction He said M-1 expects fare box revenue Childs said. barriers since work began July 2014, and other forms of income, such as Overall, M-1 Rail’s capital costs will be open except for occasional lane advertising sales, to cover about half have inched up about 4 percent in the closures just before anksgiving, of the annual operating costs. e re- past couple of years because of a Childs said. mainder would come from the re- change in streetcar vendors, Cullen Construction of passenger stations serve fund. said. e project originally planned to and the traction power substations is If passenger fare expectations hold order six streetcars from Czech rail car 40 percent nished, 60 percent of the up, M-1 would end up needing just manufacturer Inekon Trams for ap- aerial electrical wiring is done and 85 $18.7 million to cover the remaining proximately $30 million, but Cullen percent of the poles for the lines have three years of operational costs. said Inekon wasn’t going to be able to been installed. at money is expected to come deliver the vehicles on time, so the e Michigan Department of Trans- from a forthcoming pitch to larger sides failed to reach a nal deal. portation is spending $59.2 million in employers along the route, which In June 2015, M-1 signed a $32 mil- state and federal funds to concurrently runs from Grand Boulevard to Con- lion contract with Brookville, Pa.- reconstruct some of Woodward and gress Street, who would buy bulk based Brookville Equipment Corp. for two overpasses as M-1 lays the tracks passes for employees, Cullen said. six streetcars, along with spare parts and builds the system’s infrastructure.

TITLE SPONSOR at could include Wayne State Uni- and support services. e rst is ex- In June, M-1 announced that Lom- SPONSORSHIP versity and the College for Creative pected to be delivered within a month bard, Ill.-based transportation man- Studies, and the major employers or so, and the rest could be here by the agement rm Transdev Services Inc. OPPORTUNITIES such as hospitals and corporations. end of the year. has signed a ve-year, $15.5 million • Video Sponsor • Keynote Speaker Sponsor• Breakout Session Sponsors • And more! “ere are a lot of people that have Cullen said public outreach indi- deal to run the system. not contributed that we would like to cated that people wanted less over- Bill Shea: (313) 446-1626 NOV. 17 • 7:30 A.M.- 1 P.M. • [email protected] ask (for donations),” Cullen said. head power wiring, so the Brookville Twitter: @Bill_Shea19 DBpageAD_DBpageAD.qxd 8/29/2016 12:26 PM Page 1

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Prepaid Card 6 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 How companies survive 100 years ow many new companies will be come dedicated, loyal members of the here two decades from now? organization and often describe their He answer, quite frankly, is not many. relationship with the company as “be- e average life cycle of new corpora- ing part of a family.” Whenever possi- OPINION tions is roughly 12 to 15 years, a signif- ble, Century Club companies grow icant decrease from the 1920s when leaders from within. Most have al- the average age was 67 years. ready identied their next leader and One reason may be the objectives have a process in place for his or her Wealth drain bill with which entrepreneurs go into busi- OTHER VOICES development. ness: Some may build demand for a Vicki TenHaken novel product that a larger company Active members of TenHaken is a professor of management will buy for a large sum of money. But community needs review for those entrepreneurs who want to at Hope College and author of the book build a lasting organization, there is Lessons From Century Club Companies: Century Club companies put time e rey Miller, M.D., who owns Novi-based vein clinic Miller much to learn about managing for Managing for Long-Term Success. into building both social and commer- Vein, said at 53 he doesn’t intend to retire soon. But as he long-term success from members of cial relationships with their local com- gets closer to retirement, if his nancial adviser and attorney the Century Club — companies that ness. Century Club companies have munity. Jsuggest nancial benets of moving out of state, he’d look at it. have been in continuous, independent unique strengths that have led to suc- “We do a lot of business with both While it’s tough to quantify just how many business owners operation for more than 100 years. cess, but their long-term survival the businesses nearby and the people Even in a country as young as ours, comes from continuous e orts to who live in the surrounding neighbor- might be in Miller’s particular position, it is clear to industry well over 700 companies have survived evolve while protecting and building hoods,” said Phil Ippel, co-owner of groups like the Small Business Association of Michigan that there more than a century. Nearly 100 of these on those strengths. ey have mas- Hoekstra’s Hardware (1867) in Ka- are enough of them for signicant worry; the state has lost three are here in Michigan, including De- tered the delicate balance between lamazoo. “We feel like this is where former SBAM board members alone in recent years via the phe- troit’s SmithGroupJJR (1853), Chris En- tradition and change. we’ve been, and this is the place to be. nomenon of “cashed-out entrepreneurs.” gel’s Greenhouse (1883), Dittrich Furs is is home.” A local reputation as be- Deep relationships A state bill was introduced earlier this year which would deduct (1893), Detroit Store Fixture Co. (1898) ing a great place to work helps attract and Hubbell, Roth and Clark (1915). with partners talent and provides access to other re- from the state’s income tax rules income from a business sale that After more than a decade studying sources. In return, enduring enterpris- is then reinvested into another business in Michigan. e goal is to these companies in the U.S. and Japan Century Club companies regard es invest resources into projects that prevent small-business owners from moving their wealth and ex- with my colleague Makoto Kanda of the maintenance of relationships with will develop and sustain their commu- pertise out of Michigan. However, accountants interviewed in Meiji Gakuin University, we’ve found customers and other business part- nities. Century Club companies see Lindsay VanHulle’s Page 1 story raise questions about the bill and ve key factors that contribute to com- ners — from gener- themselves as panies’ long-term survival. ation to generation A local reputation part of the so- nonspecic wording when it comes to dening reinvestment. — as crucial to cial structure of Does investing in a fund that has a small percentage of portfolio Strong corporate their success. Gor- as being a great their communi- investments in Michigan count? If so, what’s the point? mission, culture don Food Service, place to work helps ty, enjoying is particular legislation will need a y-specking, and some established in both its respon- revisions, but more importantly, Michigan does need to re- Companies that have celebrated Grand Rapids in attract talent. sibilities and move barriers to starting a business, growing it with available 100 years in business have very strong 1897, says every Vicki TenHaken benets. cultures and are deliberate about pre- product, order or Leaders at capital, and building an equal playing eld for doing business. serving them. Often the beliefs and decision is “inspired by the people on Century Club companies overwhelm- values of the founder have been the other side of the plate.” It and other ingly believe in a balance of these ve passed on through generations. How Century Club companies develop factors: Don’t focus too much on cus- Test scores show deciencies this transmission occurs di ers from close-knit, mutually supportive rela- tomers and ignore your employees; Nobody likes to fail. Especially if you fail publicly. company to company — not all rms tionships that enable the type of trust don’t invest in developing your com- But the release last week of M-STEP scores — representing have written mission or value state- and learning necessary to navigate the pany’s core competencies without ments — but leaders consistently af- changes and challenges faced by a helping your community; don’t testing of students in grades 3-6 and high school juniors — shows rm the importance of their corporate company over the years. change so fast that you forget to honor Michigan has a long way to go before it becomes a Top 10 state in credo as a primary factor of their suc- the traditions that got you to this point student achievement. cess. Prot is, as Max De Pree of Her- Employees that feel or be stuck in tradition that you cannot e tests were introduced in 2015, so this is only the second man Miller Inc. (1905) says, the result like family change. ey know they need to be year. But in most areas, half of Michigan students scored be- of doing well what they do as a compa- protable to survive — and as a rule, low “procient” in subject areas that included math, science, ny, not their goal. Century Club companies recognize they are very protable — but they see employees as an important factor in prot as the power behind their com- reading (English Language Arts) and social studies. at’s Strengths, change their success and do whatever they pany, not its purpose. worth repeating: 50 percent statewide weren’t mastering the management can to develop and retain them. Hav- Survival over the long term may be subjects, and for children of color, the numbers were higher. ing long-term employees allows for the ultimate performance measure: It e temptation when scores are low is to change the test. at’s Picture old companies and you long-term growth and innovation that tests the value, resiliency, relevance the last thing Michigan needs. Instead, we need the commitment might think of stodgy, outdated prac- builds on corporate memory, and it and creativity of an organization in a tices, but nothing could be further instills a type of loyalty and dedication way short-term nancial success does of state elected leaders to keep pushing for excellence. And busi- from the truth. Companies must adapt to the company that is dicult to rep- not. Implementing these factors won’t ness leaders must keep the pressure on. and successfully implement change to licate. Employees who have been with guarantee success, but they will cer- is is the future workforce in an increasingly competitive world. survive the many challenges faced a company for a long time feel trusted tainly help make your business a bet- We owe Michigan’s children the means to hit higher expectations. during a century of operating a busi- and supported. In return, they be- ter organization. A great race and a great partnership A couple of weeks ago, I had the and the UAW. Today’s Grand Prix sors for the boat races than GM and year along with lots of other racing honor and pleasure of being asked to boats, one of three classes that were the UAW. Given the local nature of fans. Not only is it lots of fun, but there be the grand marshal of the Detroit hy- racing, now use highly modied both events, it’s nice to see two big lo- is a great deal of economic activity that drofest boat races that were celebrat- Chevy automobile engines that seem cal enterprises getting involved with goes along with these weekend pro- ing their 100th year of racing on the as loud as the aircraft engines of yes- these two sporting events for all of De- grams. I remember when Roger Pen- river. Since our company is celebrating teryear. troit to enjoy. I, along with thousands ske took the lead of our Super Bowl in our own 100th anniversary, it seemed Both events have free admission on of racing fans, look forward to many 2006, an event that brought in millions perfectly appropriate for Crain Com- Friday, giving everyone in the city a years of racing and GM and the UAW to our city and region. It is the same munications to participate. KEITH CRAIN chance to see these exciting boats in being involved. Both sporting events with both of these racing weekends. It was a great weekend with some Editor-in-chief action. And the topper seems to be are great for the city and certainly have Perhaps not anywhere as much as a exciting racing and huge crowds to en- that the headquarters for General Mo- some of the most exciting racing Super Bowl, but both racing weekends joy the weekend. What made it even sorship made a lot of sense since they tors and the UAW are both on the De- during the year in our own city. contribute mightily. more enjoyable was that General Mo- also sponsor the Belle Isle Grand Prix. troit River just a stone’s throw from the I may never be grand marshal of the It was a great partnership between tors and the United Auto Workers ese are a couple of events that are action. Gold Cup again, but I look forward to General Motors and the UAW. A part- were the joint sponsors. eir spon- absolute naturals for General Motors I can’t think of more tting spon- watching both sporting events every nership that should last a long time. CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 7 Co-directors tell why they made auto bailout documentary

By Dustin Walsh Pictures, spent ry. I have a long- the top with a clear mind and no union you what you’re supposed to think. [email protected] three years inter- standing passion or government bias. What we did is e protagonists tell the story. And be- e 2008-09 collapse of the U.S. viewing the in- and interest in the take a very honest viewpoint, a direct cause we don’t have a narrator propel- auto industry was a dening moment dustry and union car industry in viewpoint. (What) most people don’t ling the story forward, we had to weave in the historical tapestry of Detroit. executives, or- general. And the understand, and it was partly revealed the dialogue through the entire cast. e collateral damage of the mort- chestrators of the book had such in- during the (congressional) hearings, is Obviously, the members of the task gage-backed securities crisis that bailout, journal- credible charac- that the UAW is a labor monopoly. force have a dierent point of view plagued our economy and caused the ists and other ex- ters and incredi- Usually the only people that like mo- about what happened than Nardelli largest recession since the Great De- perts about the ble events. But I nopolies are the monopolies. When and Lutz. People are actually learning pression had industry collapse. didn’t think it got we explained the jobs banks, people something at our movie. at’s why Bill Burke: Didier Pietri: General Motors, e documenta- Co-director of the whole story Co-director of were shocked. With the task force, it’s people are coming out to see it. Chrysler and their ry features inter- “Live Another Day” from these peo- “Live Another Day” more complicated. Running a car Burke: Everyone in this lm is really suppliers facing views with for- ple. I felt with the company is a big venture. It’s very smart. is is not like campaign cover- certain doom. mer Chrysler right research and complex. For a task force of people age. It’s people giving their opinion. Until Uncle Sam, CEO Bob Nardelli; Bob Lutz, former access, we could tell a fuller and more with no experience in the industry to No one is selling you. It’s bright people at the behest of a GM vice chairman; Steve Rattner, complete and more interesting story. come in, claim incompetence among telling you what they experienced and federal task force, head of the auto task force appointed Burke: We don’t see this as a Detroit the industry’s leaders, and then claim what they believe. stepped up using by President Barack Obama; Jay Alix, story. We really see it as an American they rejuvenated the industry in just Q: What did you learn about the in- taxpayer dollars founder of advisory rm AlixPartners story about management and labor, three months, that’s dicult for peo- dustry making this lm? to bail them out. Dustin Walsh: LLP; Jimmy Lee, vice chairman of J.P. government and business ... and Wall ple that were there to understand. e Pietri: I didn’t realize just how di- It worked. Less Crain’s Detroit Morgan Chase; Bob King, president of Street. is lm really picks up where executives at GM and Chrysler were cult the relationship was between la- than a decade lat- Business the UAW; Steve Miller, former CEO of “ e Big Short” left o. e U.S. is a not as incompetent as the task force bor and management. ese con- er, the auto in- Delphi Automotive plc and current uniquely auto driven country. It’s a made them seem. tract negotiations are as a dicult as dustry is buzzing and is on pace to cel- CEO of IAC; among others. huge part of our history. Everyone Burke: Anyone that’s worked in peace in the Middle East. ey were ebrate another near record year of car I chatted with the producers about knows what their rst car was. business for some time and has con- so focused on ghting each other, sales and prots. the lm, its characters and the events Pietri: ere is a huge emotional at- sultants drop in and say they don’t they didn’t realize what was really But a pair of former movie and tele- surrounding the government bailout. tachment (to the car). ere’s no emo- know what they are doing ... well, that happening. Everyone, including the vision executives believed the public e documentary, which won the best tional attachment to banks. Songs are builds a lot of resentment. We think it’s president of the UAW (Bob King) ad- didn’t get the full story and made the documentary prize in April at the Myr- written about cars. If we include the incredible how the industry has re- mits mistakes were made. But what lm “Live Another Day,” a documen- tle Beach International Film Festival, suppliers, the dealers, the workers, this surged, but let’s face it, a lot of these we don’t know is whether those mis- tary adapted from the Paul Ingrassia debuts in theaters on Sept. 16. is a gigantic universe that transcends cars that are being sold today were de- takes are going to be repeated... Did book Crash Course. Media previews of Q: Why would a couple of producers, just Detroit. signed and engineered well before the we learn anything now that oil is that lm kick o this week. removed from Detroit, make this doc- Q: The trailer is clearly critical of the task force showed up. cheap and we’re back to buying big Bill Burke, co-director and former umentary? UAW and the federal task force. Was Q: What makes this story and the SUVs? Turner Broadcasting and TimeWarner Pietri: I picked up the book Crash that intentional? documentary so compelling? For more information on the executive, and Didier Pietri, co-di- Course one day randomly at Barnes Pietri: e trailer is a condensed Pietri: We didn’t use a narrator. lm, or to watch the trailer, see rector and former president of ABC and Noble. It was just a fascinating sto- version of the movie. We tried to revisit We’re not Michael Moore, trying to tell liveanotherdaymovie.com. New Detroit Lions regime braced for rst full season

By Bill Shea Both played well in limited presea- games versus sitting at home and n e Lions and new retail conces- with 264 1,400-watt LED lights — and [email protected] son action, but the rst-team oense watching it on a great high-denition sionaire Levy (which has handled Ford the new lighting is much friendlier for A frenzy of front-oce and roster under quarterback Matthew Staord TV or going to a sports bar,” he said. Field’s concessions since the stadium TV viewing. changes, along with millions of dollars failed to score a touchdown — sparking “You’ve got to give them something opened) remodeled and modernized n e team spent $5 million to ren- in fan-oriented capital improvements worry the Lions will struggle early this that’s great in-game entertainment. and rebranded the team’s agship ovate the stadium’s roof. e work, at Ford Field, have wrapped up for the season. ey also struggled with penal- One of the things that came out on a merchandise store near Gate A at a done between April and July, included 2016 Detroit Lions. ties and turnovers. long list of ideas is the cheerleader cost of $1.5 million. replacement of weather-damaged Now, they have to play the games. In addition, Quinn took Taylor Deck- idea. We evaluated it, and obviously n e end zones were replaced roof sections, insulation improve- e National Football League team er at No. 16 in this year’s NFL draft. e there are going to be people upset and with blue articial turf in August. e ments, and an application of weather opens the 2016 season with a 4:25 p.m. Ohio State University product lls the people enthused by it. But so far I think team hasn’t had blue end zones since reinforcement and protection materi- kicko on Sept. 11 at the Indianapolis critical left tackle position. Decker, 21, it’s been very, very well received.” it played at the Pontiac Silverdome. al. Additionally, the massive Ford Mo- Colts, and it will be the rst full cam- in May signed a fully guaranteed four- On another teeth-gnashing topic “People love our Honolulu blue, and tor Co. logo on the roof was repainted. paign for Lions President Rod Wood year, $10.9 million contract. for fans, Wood said he expects to have the more we use it the more people n Highlighting new concessions is and his hand-picked general manager, While Quinn and head coach Jim news about improved Ford Field Wi-Fi appreciate it,” Wood said. a 4-pound, 9-inch doughnut cake cov- Bob Quinn. Caldwell have to handle the on-eld — a technology bane of many college n e number of sales/account ered in blue frosting and lled with a ey took the reins after owner decisions, Wood and the front oce and pro teams with signal-dampening representatives that handle season layer of apple lling. It sells for $15, Martha Firestone Ford red Tom Le- have crafted plans calculated to im- large stadiums — in the near future. ticket holder accounts was increased and for a bit extra, fans can get a cup of wand, the team’s longtime top execu- prove the fan game-day experience. Here are the other improvements to 16 from six. apple cider — with or without a shot of tive and now CEO of Detroit watch For example, the Lions are going to and changes for this season: n Wood said the Lions spent “sev- rum. ey’ve been so popular in the peddler Shinola, and General Manag- promotional giveaways this season, n e team bought 89 walk- eral hundred thousand dollars” on 80 preseason that Ford Field executive er Martin Mayhew last year. Wood such as Barry Sanders bobbleheads to through metal detectors from Twins- separate loudspeakers, deployed in chef Joe Nader said he expects to sell subsequently purged and reorganized the rst 20,000 through the gates for burg, Ohio-based CEIA USA Ltd., four hanging clusters from the stadi- 300 for the home opener at 1 p.m. Sept. much of the team’s business adminis- the Oct. 16 game. ey’re also adding meaning there now will be 104 units at um roof, from Berkeley, Calif.-based 18 against the Tennessee Titans. tration in the latest bid to get the fran- games outside the stadium before Ford Field’s gates, up from 15 last year. Meyer Sound Laboratories Inc. to im- n In November, the Lions struck a chise on the right track for its rst NFL kicko, and tweaking the popular 50- ose are now used in conjunction prove sound coverage, intelligibility deal for 50,000-watt news/talk station championship since 1957. 50 rae. with amusement park-style corral and clarity during games and events. WJR-AM 760 to broadcast their games Quinn, hired away from the New In a decision both hailed and re- lines to get fans into the stadium more e speakers were added to the origi- live, replacing CBS Radio Inc.-owned England Patriots in January, faced his viled, Wood decided the Lions will quickly. Previously, the lines have nal sound system, which will be re- WXYT-FM 97.1 “ e Ticket,” which had rst major Lions crisis when wide re- have cheerleaders for the rst time. been more of a free-for-all crowd of placed entirely in 2017. aired the games since 2004. Terms of ceiver Calvin Johnson decided to re- Led by former Detroit Pistons dance fans queued up at the doors. n To reduce Ford Field’s massive the ve-year deal between the Lions tire after nine seasons. He holds nearly team director Rebecca Girard-Smoker, n Driving to Ford Field may get a utility bills, $2 million worth of new and Atlanta-based Cumulus Media Inc. every team receiving record. To re- approximately 25 women will entertain little easier because the team is inte- and more energy-ecient lighting were not disclosed. e switch came place his production and dominance, fans during games and at team events. grating the popular Waze navigation was installed both inside and on the amid accusations that the team was if that’s even possible, Quinn signed e decision was fueled by surveys app with the team’s own app, with the stadium exterior. ere are 250 new trying to stie on-air criticism at 13-year veteran Anquan Boldin, 35, to and meetings with fans, Wood said. intent of pushing trac notications LED lights, with color projection capa- WXYT, a charge the Lions denied. e a one-year, $2.75 million deal. Even And having cheerleaders is one of the to users. e Lions are also develop- bility, on the stadium roof, and anoth- team said the switch was made be- better, he signed promising young re- strategies for entertaining fans, and ing, with the city, a pick-up/drop-o er 30 each on the east and west exteri- cause the contract was up and WJR ceiver Marvin Jones, 26, formerly of brand building. area at the stadium for fans using Uber, or stadium walls. Replaced inside oered better terms. the Cincinnati Bengals, to a ve-year, “It’s a big challenge for sports right Ly or taxis. Details about the location were 660 1,500-watt metal-halide Bill Shea: (313) 446-1626 $40 million deal. now to get people to come to the are not yet available. lamps, used to illuminate the eld, Twitter: @Bill_Shea19 8 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 Survey: Employers expect 3% avg. merit raise in ’17 By Lindsay VanHulle Crain’s Detroit Business/Bridge Magazine Employers in Michigan expect to o er an average merit raise of 3 percent in 2017, a gure the American So- ciety of Employers said is “beginning to sound like a broken record.” e Livonia-based organization, in an annual survey for its members, said the average merit raise remained at 3 percent in 2016 — and in several prior years — despite ongoing economic re- covery since the recession and falling unemployment rates. Yet the at raise amount “is consistent with several national surveys, as well, so this is not a Michigan phe- nomenon,” Mary Corrado, the organization’s president and CEO, said in a statement. “It appears the shift toward modest raises and variable pay and re- ward options is no longer a trend, Mary Corrado: but a compensa- Not just a Michigan tion practice issue. that’s here to stay — at least until the next upheaval in the economy or labor markets.” Of the 231 rms surveyed, 83 per- Corporate Law Experience cent award some kind of variable compensation, including annual bo- ® nuses, prot sharing and employee referral rewards, survey results show. In Your Corner. e society’s 2016-17 survey in- Ŷ Comprehensive corporate transactional cludes 183 employers from Wayne, Oakland, Macomb, Livingston and St. practice including business planning Clair counties, or 79.2 percent of total and startup. respondents. Employers with 1 to 500 employees Ŷ Corporate governance and nance, in the state represented 83 percent of respondents. Manufacturing was the venture capital, M&A. leading industry, at 60 percent of respondents, with the remaining 40 percent made up of trades and services employers. Other survey results show: n Annual bonuses as a percentage of base salary next year are expected to be roughly 5 percent each for nonex- empt hourly nonunion and salaried employees; 9 percent for exempt salaried employees; and 24 percent for of- cers and executives. n 61 percent of employers award merit pay to all employee groups, with top performers receiving the largest award. at is an increase from years past, the society said, when employers were more likely to award their best employees most of the merit awards and some merit pay to average-performing employees. First Tier Ranking n 4 percent of employers that re- in Corporate Law sponded to the survey expect to freeze wages or salaries in 2017. Ŷ Detroit Ŷ Novi Ŷ Grand Rapids Ŷ Kalamazoo Ŷ Grand Haven Ŷ Lansing Ŷ Ann Arbor Ŷ Hastings Contact Rick Manczak at [email protected] Lindsay VanHulle: (517) 657-2204 Twitter: @LindsayVanHulle CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 9 SPECIAL REPORT: BUSINESS EDUCATION Building and bonding By Chad Halcom “With public universities, there [email protected] Michigan’s have been few if any defaults, and A branding battle and an “arms there is some assumption by (bond- race” for new and improved facilities holders) the state will step in and in recent years has created a two- regional and backstop an obligation they can’t tiered bond market for colleges and meet,” he said. “But that’s probably universities, where prestige means private college less the case in Michigan, because the investor appeal and regional schools state doesn’t seem to have as much of sometimes struggle, analysts and lo- a temper to help out its facilities.” cal o cials said. credit ratings S&P maintained Eastern’s BBB+ Michigan public universities is- rating but downgraded its outlook sued at least $300 million in new struggle in from stable to negative in April, citing bonds and re nanced at least falling enrollment (o more than $300 million more since last summer, 1,000 since 2013), low unrestricted according to recent credit rating investor markets net assets of about $15 million, and a agency data. e markets for the burgeoning $254 million debt last most part received the new debt well, tutions is price,” she said. “ at be- year that shows “less exibility for ad- although ratings or outlooks have comes more di cult in an environ- ditional debt.” Moody’s Investors Ser- slipped since December for Wayne ment where we see students applying vice Inc. downgraded Eastern last State University, Eastern Michigan to typically 10 to 12 schools each, ver- month from an A1 to A2 credit rating, University and Lake Superior State sus just a handful years ago. So it’s also citing enrollment challenges and University. more di cult for the less selective a weak ratio between its operating Eastern and Lake Superior have institutions to keep them.” cash ow and debt service. both seen some enrollment slippage Only the University of Michigan Up in Sault Ste. Marie, meanwhile, lately, but many smaller universities (AAA, stable) and Michigan State S&P also lowered the outlook for feel a mix of “operations pressures” University (AA+, stable) have a better Lake Superior from stable to nega- from a limited marketing radius and bond rating than the state as a whole tive, on enrollment slippage (14 per- regional pull, reduced state funding (AA-, stable), and analysts say it’s cent, or 340 students over the past and a losing brand battle, said educa- probably not coincidental that the ve years). Crain’s reported last tion group sector lead Jessica Matsu- Big Ten schools get the least amount month that S&P moved Wayne State mori and Director Jessica Wood of of operating revenue from the state from an AA- to an A+ rating, while U.S. Public Finance Higher Educa- higher education budget (4.8 percent Moody’s maintained an Aa3 but low- tion at S&P Global Ratings Inc., which and 14.2 percent, respectively, versus ered its outlook from stable to nega- rates 11 of Michigan’s 15 public uni- 22.4 percent at Lake Superior in scal tive, on more than $400 million in versities. 2015). debt WSU carries. Matsumori said top-tier schools or In fact, based on the relative short Matsumori and Wood also point- those that rate highly on various list- shrift the state of Michigan gave to ed out that S&P’s rating criteria ing services have been strengthening Detroit bondholders versus pension- changed earlier this year, and that their credit ratings lately, while other ers and employees in supporting a was also a partial factor in some uni- schools are losing ground. rescue plan for the city’s Chapter 9 versity downgrades. “It sort of comes down to brand. If bankruptcy almost two years ago, Eastern’s exibility for new debt you have a reputation that extends bondholders may feel slightly more could be tested when it expects to is- into national and international mar- skittish about institutions based here, sue new bonds this fall to put toward kets, then enrollment is easier to said Matt Fabian, partner at Munici- a $19.6 million “co-generation” proj- maintain, and if you don’t, then what pal Market Analytics Inc. in Massa- ect and a $3.4 million energy you’re competing on with other insti- chusetts. SEE BONDS, PAGE 10

Work will continue throughout the school year on a $78 million student housing complex on the south campus of Oakland University. BRIAN BIERLEY/OAKLAND UNIVERSITY 10 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 SPECIAL REPORT: BUSINESS EDUCATION BONDS FROM PAGE 9

e ciency technology upgrade to 33 EMU buildings. e co-generation project will build a new heat and power system that uses natural gas to pro- CONGRATULATIONS duce both electricity and steam heat This artist’s for the campus. Another project, up- rendering shows TO OUR 2016 grades to Wise Residence Hall, was - the planned front nanced through a term loan, and three entrance to Wise OUTSTANDING STUDENT phases totaling $8.4 million should Residence Hall at wrap this fall. Eastern Michigan Not everyone is taking a credit hit University. AWARD WINNERS for building and bonding, however. Moody’s maintains an A1 rating on complex will increase the university’s ties have had to turn to these other re- Oakland University, even though the total revenue likely improved investor sources,” Matsumori said. school issued a record $113 million in appeal. Smaller and more regional colleges new bonds toward $122 million of Also, maintaining an A credit rating also are more susceptible to the local planned construction. and stable outlook from S&P is Sagi- economic cycles, and recently have A new $78 million student housing naw Valley State University, after sell- been embroiled in a facilities competi- complex on the south campus, and a ing nearly $61 million in bonds this tion to shore up enrollment by entic- $44 million expansion to its Oakland year. But only about $10 million goes ing students with on-campus living, Center student activities and meeting/ to nance its Zahnow Library renova- dining and other amenities, newer event building in the west campus, will tion, while more than $50 million re- classes and research space and other increase OU’s total debt load from nances bonds from 2007 and 2008 at expensive investments, experts said. about $223 million to $336 million, lower interest rates. “Lots of schools sold bonds (the said John Beaghan, OU’s vice presi- Traditionally schools preferred to past few years) for a facilities arms race dent for nance and administration. bond mostly projects tied to a revenue that they are losing,” Fabian told “But we have such a strong housing source, like new housing or a sports Crain’s. For Michigan in particular, en- demand to live on campus, and the facility with a ticket gate, experts said. rollment is a hard-fought battle as K-12 Salma Alazmeh Alex Atanasovski new complex will generate such a spe- But Wood and Matsumori said that enrollment has sagged for years, the M.B.A. ’16 B.S. in Accounting ’16 cic new revenue source that Moody’s changed rapidly amid the nancial state has about 100,000 fewer people was not concerned and the bond buy- market meltdown of 2008-09, as uni- than a decade ago, and a dis- ers weren’t either,” Beaghan said. “And versities increasingly put academic placed-worker surge from the Great the bond sale was oversubscribed buildings and even renovations and Recession has largely returned to (more interested buyers than bonds).” maintenance for bondholders. work, reducing demand for retraining e new bonds are general revenue “Where you were used to getting and education. LEARN MORE ABOUT DETROIT’S BUSINESS SCHOOL and do not specically obligate the support from the state to build those In other university debt loads, MSU ilitchbusiness.wayne.edu new housing fees for repayment, but other kinds of facilities, the govern- maintains its S&P rating and a Moody’s Beaghan said the fact that the housing ments really pulled back and universi- rating of Aa1 after selling $208 million in bonds last summer, including about $157 million for capital projects, and increasing total debt to more than $1.1 billion. e university began construction on its $156 million “1855 Place” multifamily housing and mixed-use development last fall, and some family housing is set to be move-in ready this fall. Wayne State also expects to nance as much as $14 million of its $59 million Mike Ilitch School of Business in OAKLAND UNIVERSITY District Detroit via bonds. Ground- Among the projects that Oakland University has nanced is a new $78 million breaking was last fall on the new build- student housing complex on the south campus. ing, which is expected to open in 2018. In a public university credit rating analysis released by S&P in July, 83 percent of all institutions had stable &DUHHU2SSRUWXQLW\ outlooks, while only 63 percent of Michigan institutions did so. ree out of 11 rated Michigan institutions had a negative outlook %XVLQHVV&RDFK (Eastern, Wayne and Northern Michi- 6XFFHVVIXO0DUNHWLQJ6WUDWHJLVWORRNLQJWRIRUPD gan University), even though only SDUWQHUVKLSZLWKDVPDOOEXVLQHVVFRDFKFRQVXOWDQW about 17 out of nearly 160 institutions did nationwide, and only one school ,¶YHGHYHORSHGDSURFHVVZKHUH,FDQILQGPRUHWKDQ — Ferris State University — had a pos- IRU$1Henry Ford College does not cur- business majors. department, which has numerous free rently oer speci c entrepreneurship e program resources, such as personal business programs for nonbusiness students, begins with intro- advice, a co-working space, work- said Paul Fisher, associate dean of ductory business shops and all-day industry-focused business and computer technology, courses and the boot camps. but he said it could oer such pro- theories behind Gapske said she has seen a growing grams based on student interest. n entrepreneur- interest in the creative industry seek- ship, then builds ing the center’s services, including Jae Hyeung Kang: into implement- Mark Ducker, executive director of Has seen a growing ing those con- YPSI 24-Hour Film Shootout, who interest by non-biz cepts, said Jae sought advice for how to promote his students. Hyeung Kang, annual lmmaking event. who teaches en- Beyond the certi cate and resourc- WHO WILL trepreneurship at Oakland. es, many other noncredit programs Kang said students in his advanced exist at WCC to help students and out- MAKE entrepreneurship course, called New side entrepreneurs, including courses Venture Creation, work in teams to de- in digital marketing and how to make BUSINESS velop a business model and plan. a YouTube video or Wordpress web- About half the students enrolled are site, Gapske said. HAPPEN? nonbusiness majors, he said. In the four years he has taught the Future plans you have a team who understands SPARTANS course, Kang said, he has seen a grow- Wayne State University could ap- ing interest by nonbusiness students. prove the entrepreneurship and inno- the capital markets and your WILL. Around 25 students take the minor vation certi cate this fall and then be- each year. gin oering entrepreneurial courses as long-term objectives' Schoolcra College has had since part of the certi cate as soon as Janu- 2012 a small-business entrepreneur ary, said Margaret Smoller, associate certi cate program open to all its stu- dean of WSU’s Ilitch School of Business. dents as well as community members Smoller said students could partici- through its Small Business Develop- pate in the certi cate program after ment Center. they complete prerequisite business CORPORATE BANKING In today’s dynamic business climate, fueling growth while managing risk is key. At PNC, we believe e ve-course certi cate is meant courses, while nonstudents will need | REGINALD EADIE, MD, MBA ‘13 these goals are best achieved as a team. That’s why we emphasize a relationship-based approach to understand our clients’ REGIONAL CHIEF OPERATING OFFICER to teach those looking to launch suc- to have an undergraduate degree. DETROIT MEDICAL CENTER cessful small businesses the basics of e proposed program would be- objectives and deliver insightful risk management strategies and capital solutions. When our teams work together, we can entrepreneurship, including writing a gin with an introduction to entrepre- business plan, nancial management, neurship and build to a hands-on cap- help you fuel more intelligent growth for your business. Michigan State University’s Broadd Collllege off BusB iness hehelps workingpg professionals reach their gooalsls. marketing and business legal issues, stone such as pitching a business idea Whether you want to analyze big data to drive decisions, lead global teams, or transform the said Jodie Beckley, SBDC director. to potential funders, said Smoller. For more information, visit pnc.com/ideas or contact Ric DeVore, Regional President, at [email protected]. future of health care, our Executive MBA prepares you to take on tomorrow’s challenges. Beckley said more than 202 partici- Smoller said many nonbusiness pants have completed the program. students have asked about entrepre- With classes held every other weekend for 20 months, an MBA from the top-ranked Schoolcraft also oers several class- neurial courses, including partici- DERIVATIVES | FOREIGN EXCHANGE | LOAN SYNDICATIONS | ASSET-BACKED FINANCE | FIXED INCOME | M&A ADVISORY business college at Michigan State University is closer than you think. es through its Continuing Education pants in the university’s Blackstone and Professional Development de- LaunchPad and its business accelera- partment that complement the certi - tor TechTown Detroit. Learn more at: cate, such as Cooking Up a Successful “So I know there’s a lot of interest in PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Banking and lending products and services, bank deposit products, and treasury BROAD.MSU.EDU/EMBA Food-Related Business and Social Me- Detroit for this type of program,” she management products and services are provided by PNC Bank, National Association, a wholly owned subsidiary of PNC and Member FDIC. Investment banking and capital markets activities are conducted by PNC through its subsidiaries PNC Bank and PNC Capital Markets LLC, a registered broker-dealer and member of FINRA dia Strategy to Maximize Growth. said. and SIPC. Certain banking and lending products and services may require credit approval. Merger and acquisition advisory and related services are provided by e SBDC also puts on short semi- Wayne State’s School of Engineer- Harris Williams LLC and Harris Williams & Co. Ltd. Harris Williams & Co. Ltd. is authorized and regulated by Financial Services Authority (FRN No. 540892) and nars about the startup success and the ing got approval for a revamped entre- Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. center’s free business counseling re- preneurship certi cate this summer Investments: Not FDIC Insured. May Lose Value. No Bank Guarantee. sources to students in those programs that is available to graduate and un- ©2016 The PNC Financial Services Group, Inc. All rights reserved. CIB ENT PDF 0716-0141-342702 by working collaboratively with the dergraduate students. e certi cate instructors, she said. SEE NEXT PAGE CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 13 SPECIAL REPORT: BUSINESS EDUCATION SPECIAL REPORT: BUSINESS EDUCATION Walsh College teaches business FROM PREVIOUS PAGE courses to College for Creative Studies students to assist those who have busi- was revised to better match the engi- EMU sees early benet from retention, completion plan nesses or plan to open them. e part- neering students’ curriculum needs, By Chad Halcom cess in various pilot programs and tious goals, you 2015, under the degree completion nership began in 2013. said Gary Witus, associate director of [email protected] new resources. may not know and retention plan have included add- Walsh also has LaunchPad, which the Anderson Engineering Ventures Eastern Michigan University could Year-over-year freshmen “reten- what you can ing about 10 new student adviser posi- assists aspiring entrepreneurs in de- Institute at WSU. Witus said students already be saving more than $1 million tion” rates — or the portion of a rst- reach.” tions and new “customer-focused” veloping and launching their busi- who take the certi cate could have per year in lost revenue from enroll- time freshmen class in a given fall se- e plan in- adviser centers that resemble retail nesses. e LaunchPad is available to their tuition for the program subsi- ment attrition, thanks to a mix of new mester that returns as sophomores the volves the Broth- shop space in areas of high student current students, faculty and degreed dized through the institute. programs launched about three years following fall — have climbed from erHOOD (Help- trac, Longworth said. EMU now alumni of Walsh. University of Detroit Mercy has had ago to shore up retention and degree about 72.6 percent two years ago to ing Others Obtain hosts one of these centers in each of its Washtenaw Community College an interdisciplinary entrepreneurship completion. 74.7 percent last fall. For a typical EMU Degrees) Schol- ve colleges. has an entrepreneurship certi cate minor available to all undergraduate And that gure’s likely to grow. freshman class size, that’s a dierence ars Community, e school also mandated one ad- available to all students through its students for many years. About half e university’s Degree Comple- of about 60 students — not visible, per- Longworth: a pilot program visory appointment for all freshmen Business and Computer Technologies the students who take the minor are tion and Retention Plan enters its third haps, and it’s not clear how much im- Wants 50% grad of a living-learn- during fall semester, and others for department. e certi cate has three nonbusiness majors, said Joseph Ei- year of implementation with the fall provement was attributable to the rate in 10 years. ing community students struggling to maintain a entrepreneurship courses, all of which senhauer, dean of UD Mercy’s College semester that begins this week. For- plan. within EMU of- GPA or who haven’t hit certain prog- can be completed in a short amount of of Business Administration, which mulated in large part to address a six- But at full-time tuition rates over fering mentorship, study groups, so- ress checkpoints in their rst 60 cred- time to cater to business owners and manages the minor. He said the col- year graduation rate for freshmen that $9,000 per semester, a 2 percentage cial events and other opportunities it hours. e school also puts greater those wanting help launching their lege could soon expand its entrepre- was second to last in the state at the point retention bump translates to for men of color. It began with 25 stu- emphasis on underclass general ed- businesses, said Kristin Gapske, direc- neurial oerings to students based on time, Eastern has been focusing on en- about $1 million in annual tuition rev- dents in 2014 and is expected to sur- ucation course tracks, Longworth tor of the community college’s Entre- increased campuswide interest. rollment policies, academic prepared- enue saved. pass 60 students this fall, said Long- said. preneurship Center. “In the modern world, more stu- ness, nancial aid, curriculum and Eastern’s six-year graduation rate worth and interim Undergraduate “We did an update of our gen ed re- Gapske said the certi cate teaches dents are thinking of starting their own student advisory services. for students has hovered at or slightly Studies Director Michael Tew. quirements and looked at the reluc- business skills, how to recognize mar- business,” he said. e EMU plan speci cally targets under 40 percent in recent years — “Assigned mentors often don’t real- tance around some contents of it,” she ket opportunities, and how to develop Beyond expanding entrepreneurial men of color and single parents, two surpassing only Wayne State Universi- ly work out,” Tew said. “So we created said. “e data was stark. Students a business plan, among other topics. course oerings, UD Mercy recently groups with historical six-year gradu- ty among the state’s 15 public institu- opportunities for graduate student who followed the requirements in a “It’s a great way for business owners opened a Center for Social Entrepre- ation rates under 20 percent, accord- tions. Longworth said graduation rates ‘near-peers,’ and some junior faculty recommended order were progress- to get practical experience and be neurship, housed in the School of Busi- ing to university and national data. were up more than 2 percentage could attend events, interact with ing further, and graduating more suc- done,” she said. ness Administration, to provide the e school has since broadened that points last year, but fall 2016 data is not some students in the program, and cessfully. e community college also has an skills local practitioners need to grow focus to people of color and parents in yet available. nd out if they were interested in tak- “It builds a lot of scaolding that we Entrepreneurship Center, run by the their businesses, said Eisenhauer. general. “By 10 years out, I’d like to see us hit ing a role.” can use later on in pursuing their ma- business and computer technologies Henry Ford College does not cur- And it may be yielding some early 50 percent graduation rates,” Long- Retention rates for BrotherHOOD jors, and everyone at the university department, which has numerous free rently oer speci c entrepreneurship results. Interim Provost and Execu- worth said. “at may be a stretch freshmen have topped 80 percent, ex- can assume a common data set of resources, such as personal business programs for nonbusiness students, tive Vice President Rhonda Long- goal, because if the rst numbers ceeding the university as a whole, and competencies (in the student body) advice, a co-working space, work- said Paul Fisher, associate dean of worth said it will be another two come in around the fth year, it in- a companion SisterHOOD initiative for planning their upper division shops and all-day industry-focused business and computer technology, years until an impact on graduation volves averaging 2 percentage point for women of color makes its debut coursework.” boot camps. but he said it could oer such pro- rates can be measured, but there is growth every year,” she said. “(at) is this fall. Chad Halcom: (313) 446-6796 Gapske said she has seen a growing grams based on student interest. n “nominal progress” and signs of suc- ambitious, but if you don’t set ambi- Other initiatives, started in spring Twitter: @chadhalcom interest in the creative industry seeking the center’s services, including Mark Ducker, executive director of YPSI 24-Hour Film Shootout, who sought advice for how to promote his annual lmmaking event. Beyond the certi cate and resources, many other noncredit programs exist at WCC to help students and outside entrepreneurs, including courses in digital marketing and how to make a YouTube video or Wordpress website, Gapske said. Future plans you have a team who understands Wayne State University could approve the entrepreneurship and inno- the capital markets and your vation certi cate this fall and then begin oering entrepreneurial courses as long-term objectives' part of the certi cate as soon as Janu- ary, said Margaret Smoller, associate dean of WSU’s Ilitch School of Business. Smoller said students could participate in the certi cate program after they complete prerequisite business CORPORATE BANKING In today’s dynamic business climate, fueling growth while managing risk is key. At PNC, we believe courses, while nonstudents will need | to have an undergraduate degree. these goals are best achieved as a team. That’s why we emphasize a relationship-based approach to understand our clients’ e proposed program would be- objectives and deliver insightful risk management strategies and capital solutions. When our teams work together, we can gin with an introduction to entrepreneurship and build to a hands-on cap- help you fuel more intelligent growth for your business. stone such as pitching a business idea to potential funders, said Smoller. For more information, visit pnc.com/ideas or contact Ric DeVore, Regional President, at [email protected]. Smoller said many nonbusiness students have asked about entrepreneurial courses, including partici- DERIVATIVES | FOREIGN EXCHANGE | LOAN SYNDICATIONS | ASSET-BACKED FINANCE | FIXED INCOME | M&A ADVISORY pants in the university’s Blackstone LaunchPad and its business accelerator TechTown Detroit. “So I know there’s a lot of interest in PNC is a registered mark of The PNC Financial Services Group, Inc. (“PNC”). Banking and lending products and services, bank deposit products, and treasury Detroit for this type of program,” she management products and services are provided by PNC Bank, National Association, a wholly owned subsidiary of PNC and Member FDIC. Investment banking and capital markets activities are conducted by PNC through its subsidiaries PNC Bank and PNC Capital Markets LLC, a registered broker-dealer and member of FINRA said. and SIPC. Certain banking and lending products and services may require credit approval. Merger and acquisition advisory and related services are provided by Wayne State’s School of Engineer- Harris Williams LLC and Harris Williams & Co. Ltd. Harris Williams & Co. Ltd. is authorized and regulated by Financial Services Authority (FRN No. 540892) and ing got approval for a revamped entre- Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. preneurship certi cate this summer Investments: Not FDIC Insured. May Lose Value. No Bank Guarantee. that is available to graduate and un- ©2016 The PNC Financial Services Group, Inc. All rights reserved. CIB ENT PDF 0716-0141-342702 dergraduate students. e certi cate SEE NEXT PAGE 14 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 ADVERTISEMENT SECTION PEOPLE: SPOTLIGHT ACCOUNTING Silverstone to retire as Ford Credit CEO Ford Motor Credit Co. Chairman and CEO Bernard Silverstone will retire Oct. 1 and be ACCOUNTING replaced by COO Joy Falotico, the Robert Bennett & Jim Zann company Silverstone announced. Senior Audit Manager, CPA, CGMA / Senior Tax Manager, CPA, CVA e C O O Polk and Associates, PLC position will Robert has 10+ years’ experience in public accounting and has extensive experience in be eliminated. assisting clients with nancial statement audits, reviews and compilations including Silver- performing audits for award receipts from the Department of Housing and Urban stone, 60, has Development that meet the governmental auditing standards. been with Ford’s captive Jim works with individuals and businesses to develop e ective tax strategies and provide nance arm consulting and valuation services as well as assist clients with their more traditional public for 37 years, Stephen G. Johnson, CPA accounting attest needs. Jim has over 20 years experience in public accounting. and CEO Partner Falotico since 2013. Metzler Locricchio Serra & Co., PC Falotico, 49, has worked for PROFESSIONAL Dearborn-based Ford Credit for Metzler Locricchio Serra & Company, PC, 27 years. Before being COO, she located in Troy is proud to announce its SERVICES was executive vice president for newest partner, Stephen G. Johnson, CPA. Ford Credit marketing, sales, With twenty ve years of public accounting Americas and strategic planning; experience Stephen’s expertise includes vice president of North American individual, estate and business tax planning operations; vice president of U.S. and compliance, nancial statement sales operations; and vice preparation and attestation, business president of global marketing. valuations, litigation support, forecasts, projections and budgets, QuickBooks consulting and training, small business Thiru Ganesan named consulting and acquisition, sales/ Kyyba president-CEO liquidation planning. Hector Shamley & Bryon Lawrence Farmington Hills-based sta ng rm Kyyba Inc. promoted FINANCE Business Development & Diversity Leader / Director of Sales and Marketing COO Thiru Ganesan to president MPS Group and CEO, Hector joins MPS group taking on the role of business development & diversity leader. while current Throughout his extensive career he has held many notable positions, including Vice President President of certi cation and integrity services at the Michigan Minority Supplier and CEO Tel Development Council and Director of Enforcement for the Michigan Department of Civil Ganesan Rights in Detroit. becomes chairman of Bryon will be responsible for driving business development for MPS Group by analyzing the board. potential markets into which the company may diversify, establishing business i r u development plans and strategy that aligns with the company’s overall mission, and Ganesan, 42, Thiru Ganesan supporting the identi cation, negotiation and implementation of strategic partnerships. is the Bryon previously served as National Account Manager for U.S. Ecology, Inc./ EQ- The co-founder of Kyyba. He is also Environmental Quality Company in Boise, Idaho. the founder and president of Timothy R. Mackay Chola Power, an India-based Executive Vice President, Consumer company that designs and installs Banking O cer solar electric systems. FINANCE PUBLIC RELATIONS Level One Bank Portocarrero named Level One Bank, one of Michigan’s leading Eva D. Scurlock Candice Bowman community banks, promoted Timothy R. Crain’s digital editor Executive V. P., Director of Business Mackay to Executive Vice President, Risk Management Development Carlos Portocarrero has joined Consumer Banking O cer. Mackay joined O cer Crain’s Level One Bank in 2013 as Sr. VP, Retail Lambert, Edwards & Detroit Banking and was soon promoted to Sr. VP, Level One Bank Associates Business as Retail and Mortgage Banking. With nearly Level One Bank, one of Candice Bowman has joined digital editor 25 years of experience in bank leadership, Michigan’s leading community banks, Lambert, Edwards & Associates as Director of to manage Mackay is responsible for the strategic promoted Eva D. Scurlock to Executive Vice Business Development. Based in Detroit, website leadership of the Consumer Banking President, Risk Management O cer. Scurlock, Bowman will oversee the rm’s new business projects and Division, including branch banking, small one of Level One Bank’s co-founders, joined e orts with a focus on the Southeast work with business banking, residential mortgage and the Bank in 2007 as Assistant Vice President, Michigan region, as well as LE&A’s national reporters to marketing. Credit Manager. In 2012, Scurlock was Consumer, Automotive, Education, Healthcare elevate the promoted to Sr. VP, Sr. Credit O cer. With and Investor Relations practices. She joined Portocarrero digital over 15 years of experience in the banking LE&A from Detroit-based architecture and presentation of stories. industry, Scurlock is responsible for the design rm, Hamilton Anderson Associates Portocarrero, 35, worked at strategic leadership of enterprise risk (HAA) where she managed business Nuveen in Chicago as a digital management, including credit and compliance development, marketing and public relations project manager. Previously, he risk. activities. was at Discovery Worldwide and Jacobson/Rost, both in Chicago, as a digital project manager. CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 15 September 5, 2016 CRAIN’S DETROIT BUSINESS Page 15 strategist at Horizon Investments, a Charlotte, members; $50 walk-in nonmembers. BANKRUPTCIES N.C.-based rm that specializes in products that Email: [email protected]; phone: (800) CALENDAR mitigate investor risk, has nearly 40 years of 427-5100. e following businesses led for pro- experience following Washington issues for tection at U.S. Bankruptcy Court in De- THURSDAY institutional and retail investors. Townsend Hotel, Entrepreneurs Forum: Where Preparation Meets troit Aug. 26-Sept. 2. Under Chapter 11, a SEPT. 8 Birmingham. $45. Contact: Michelle Doran, Opportunity. Noon-4 p.m. Sept. 16. South eld company les for reoganization. A Chap- Connecting Cultures to Business Luncheon. 11:30 phone: (734) 546-2390; email: [email protected]. Area Chamber of Commerce. Keynote speakers ter 7 bankruptcy is a liquidation. a.m.-1:30 p.m. Livonia Chamber of Commerce. include DeAndre Carter, author of Demand BRP Acquisition Group Inc., dba Black Riv- Representatives from metro Detroit businesses will UPCOMING EVENTS Greatness, and Ken Johnson, inventor of Phase 10 er Plastics, 15000 Hall Road., Sterling provide information about Asian, German, Raising Capital and Building Capital Source card game and board game. Representatives from Heights (also of Port Huron), voluntary Chaldean and Hispanic cultures and new ideas to Relationships. 8:30-10 a.m. Sept. 13. Automation the Small Business Administration, One Stop Shop Chapter 7. Assets: $0; liabilities, $1.7 million. better prepare for productive interactions with Alley. Topics will include developing a strategy to Business Center, Oakland University Incubator, JA Family Enterprises Inc., dba Dool- business people from di erent cultures. identify nancing sources and requirements, Michigan Women’s Foundation, South eld Area ey's Tavern and Dooley’s of Sterling Moderator: Roop Raj, WJBK-TV2. VisTaTech Center, establishing a marketing process, negotiating Chamber of Commerce and South East Michigan Heights, 12414 Hall Road, Sterling Schoolcraft College, Livonia. $30 members; $40 nancing commitments and understanding the Entrepreneurs Association will be available to Heights, voluntary Chapter 11. Assets and guests. Contact: Laura Tahmouch, phone: (734) underwriting process. Speakers from Doeren answer questions. Topics include funding, liabilities not available. 427-2122; email: [email protected]. Mayhew will be David Ritter, shareholder, networking tips and help for startups. Franklin Law-Den Nursing Home Inc., 1640 strategic advisory group; and Claudio Calado, Athletic Club. $15 members; $20 nonmembers. Webb St., Detroit, voluntary Chapter 11. Political strategist Greg Valliere. Noon-1:30 p.m. managing director. Automation Alley, Troy. Contact: Tanya Markos-Vanno, phone: (248) Assets and liabilities not available. CFA Society Detroit. Valliere, the chief political $20 members; $40 nonmembers; $30 walk-in 557-6661; email: tanya@south eldchamber.com. Chad Halcom

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association ranks Michigan nationally “They sold their business, which ids-based government sales rm JetCo TAX on a variety of metrics, from private Solutions, said that while she isn’t look- FROM PAGE 1 sector research and development to is always a happy thing. What’s ing at selling today, she and her hus- commercialization of university tech- unhappy about it is out of band will want to know as they get close goals was initially just to get it out there nology. to retirement that they have nancial so that there is discussion.” e declining rate of startup com- Michigan goes the combination incentives to stay in Michigan. Tellier e legislation, though, might not panies in Michigan got Fowler’s atten- of their money and experience. ” said she does not envision herself retir- be the simple x proponents hope, tion, too. He convened an internal task ing to anywhere but Michigan. several accountants whose rms do force to consider why Michigan might Rob Fowler, Small Business Association of Michigan “Anything we can do to keep entre- business in Southeast Michigan told be losing entrepreneurs to other plac- preneurial spirits in Michigan is a posi- Crain’s. es, and how public policy could be im- a lot, and generally it comes up be- requires establishing yourself in anoth- tive thing,” said Tellier, an SBAM board Aside from the diculty of legally proved to help them stay. cause somebody’s already bought a er state,” said Curtis Ruppal, a Grand member whose rm helps clients ob- establishing residency in Florida — it’s at could mean addressing some- place or moved there or has thought Rapids-based partner in the state and tain government contracts through more complicated than buying a thing as intangible as cultural norms about it for other non-tax reasons.” local tax group for Plante Moran, which such services as proposal management house and changing an address, they that discourage people from starting Becoming a Florida resident re- has multiple oces in metro Detroit. and writing responses to requests for said — the bill as drafted could have businesses, to advocating for walkability quires establishing a permanent home If Michigan business owners still proposals. “As those of us who are busi- unintended consequences, not least or mass transit if that’s what could help in the state, including ling a declara- have personal and professional con- ness owners right now look at retire- that it might not serve as enough of an Michigan attract new talent, to pursuing tion of domicile, earning a homestead nections in Michigan, including main- ment (and) look at selling our compa- incentive to encourage business own- state programs or nding people with tax exemption, registering to vote in taining a second home, “have you real- nies — look at the next phase of our ers to stay in Michigan. At least one expertise to pull research out of univer- the state, registering children for school ly abandoned Michigan as your professional lives — the more options said younger entrepreneurs actually sities and turn it into products. or providing “the date non-Florida res- primary residence?” Ruppal said. we have, the better.” could benet most from the deduc- e organization could be ready to idency was terminated,” according to Ruppal, of Plante Moran, said he Tax tangle tion, particularly if they have a hot present its recommendations this fall, the Florida Department of Revenue. e foresees the bill as written could have a startup that takes o while they’re in with plans to develop a policy platform department’s guidelines say that sim- Residency, ultimately, might be irrel- broader impact than its authors hoped, their 30s and suddenly have cash to in- that could be shared with all candi- ply obtaining a Florida driver’s license evant when it comes to cashing in on a in that there is nothing in the language vest in another company. dates for governor in 2018, Fowler said. only proves intent to become a perma- business sale today, several nancial that he believes could prevent a busi- And, they noted, many business e issue of cashed-out entrepre- nent resident. advisers said. ness owner from moving to another buyers purchase the company’s assets, neurs is just one thread. Jerey Miller, M.D., who owns Novi- at’s because the owner of a small state and investing the proceeds of a rather than stock, because assets are Many small-business owners fund based vein clinic Miller Vein, said at 53, business incorporated in Michigan as sale into an equity fund that has just 5 depreciable; a provision in the federal their retirement accounts with income he doesn’t intend to retire soon. But he an S-corporation, in particular, will have percent of its portfolio activity in Michi- Internal Revenue Code also allows from selling their business, he said. said as he gets closer to retirement, if to pay income taxes on any business in- gan. More corporate income than in- buyers in some business transactions Could there be a way to incentivize his nancial adviser and attorney han- come that can be sourced to the state of tended could wind up tax-exempt, he to purchase the stock in a company but them to stay in Michigan when they do dling his estate planning suggest he Michigan based on how much work the added. treat it as an asset for tax purposes. In retire? had a nancial incentive to move out of company did in the state — even non- “Let’s put it this way: I think the way either case, the seller must pay state in- “ at’s exactly the person you want the state, “I would denitely consider residents, said Richard Spengler, Grand the language is worded, there would be come tax on the portion of income to stay and actively re-engage with oth- moving.” Rapids-based senior director of the some creative tax positions,” he said. from the deal that belongs to the state, er companies, invest and mentor and e concept of an income tax de- multistate tax consulting group for BDO Schmidt said he intentionally left out regardless of whether the seller lives in maybe even start a new one,” Fowler duction for business sale income USA LLP, which has an oce in Troy. denitions that clarify the size or value a state without an income tax require- said. “ at wealth, if reinvested in makes sense, said Miller, a Small Busi- Schmidt’s bill might be trying to x a of companies allowed to benet from ment. For instance, if a business did a some way, we could certainly think ness Association of Michigan board perceived problem, Spengler said, the income tax deduction in order to quarter of its sales to Michigan cus- about treating that dierently. I think member who owns the chain of ve though he added that he isn’t sure the start debate on the issue. e language tomers, then 25 percent of the seller’s we’d start again with the proposition clinics across Southeast Michigan. He perceived problem actually exists be- ideally would be rened during com- gains from the sale of the business that it’s bad policy to run wealth away said he expects his roughly $5 million cause so many business transactions mittee hearings with input from inter- would be owed to Michigan. by putting it at a disadvantage.” company to see growth between 12 are done as asset sales. As drafted, Sen- ested groups, he said. “My personal feeling is that it proba- Several accountants, though, said percent and 15 percent this year. ate Bill 893 raises questions in its word- He added that he intends the prima- bly isn’t going to change those individ- many of their business clients aren’t Yet Miller said he believes more ing, including how to dene a business ry beneciaries to be smaller business- uals’ (minds) that are selling their busi- necessarily interested in reinvesting in business owners might contemplate owner reinvesting in another business es, perhaps up to $30 million in value. nesses, from the simple standpoint a business when they retire; rather, staying in Michigan, especially young- or doing business in Michigan, Spengler “ at’s kind of my vision for it, but that when they’re looking to sell their they’re interested in taking their retire- er ones, if they could exempt their sale said. again, we didn’t put parameters (on it). business they’re looking to cash in ment savings and looking for the high- proceeds without the requirement “Irrespective of what they’re trying to It’s still a work in progress,” he said. “It their chips and then diversify them- est return with the least amount of risk. they be reinvested — though he under- accomplish, whether that’s right or might turn out that maybe, all things selves,” said Dennis LaPorte, a partner “If they were changing their resi- stands why the language was included. wrong, there are aws in the legislation considered with other changes that in the tax group of UHY LLP in Sterling dency to Florida, I think they would do Accountants say proving that a resi- itself” due to holes in the language, he we’ve made, this isn’t the best route. I’m Heights. “I would think that the major- it potentially to save tax, but (mostly) dent has left Michigan is one of the said. “I would say it’s not clear what willing to do (or) try anything, or look at ity of it would be a moot point.” because they were already planning to most important — and the most com- they’re even intending, because it’s so it, to make sure that that kind of money move,” said Michael Mayette, a princi- plicated — pieces of the process. sparse that it could apply to lots of situa- stays in Michigan.” Studying solutions pal with Rehmann in Troy. “ e discus- “It’s not only about abandoning tions.” Lindsay VanHulle (517) 657-2204 Each year, the state’s small-business sion about Florida residency comes up your current state of residency. It also Sue Tellier, owner of Grand Rap- Twitter: @LindsayVanHulle

app. ere also are apps and digital ter that opened in 2008. It uses a bank “We’ve used that to monitor the ative ways, if those types of things hap- PALACE signs that help fans nd the shortest line of high-denition monitors that dis- trac and reroute some of the en- pen, on quick response time to keep it FROM PAGE 3 for food, merchandise and restrooms. play live camera feeds showing trac trance points to improve egress,” Man- moving.” But the easier solution is to keep at the Palace and along local roads, nion said. Good communication from the arena a dining destination. fans informed ahead of time. Over the including I-75. e system is tied into e Palace has 8,600 parking spots, state also is a critical factor. “It’s inspired people to come eat summer, the Palace licensed Move- the Michigan Department of Trans- and the venue’s operations team can “We have a pretty good history of dinner early,” Mannion said. able Ink, a software program that portation’s network of trac cameras, redo parking patterns in real time working with MDOT,” Mannion said, He also said the 20,000-seat Palace sends real-time trac condition re- and there is a live MDOT chatroom based on trac conditions, he said. noting that PS&E has dealt with road is contemplating opening its doors ports in emails that geo-targets the ve- that brings together Palace trac sta “It’s very dynamic where they’re construction around its various ven- earlier for Pistons games to encourage hicles of fans who buy tickets directly with MDOT, Auburn Hills police, the shifting these trac patterns,” he said. ues for decades. Palace management fans to arrive sooner. Fans with tickets from PS&E or Ticketmaster, or are pre- Oakland County Road Commission, One bottleneck the Palace faces is gets weekly updates from the state, he for suites, courtside seats and other mium seat holders. local broadcast media, meteorologists that it charges for parking. Palace added. premium seating already can get into e email provides a map of what the and others who can provide informa- Sports & Entertainment-owned DTE “Over this past winter, MDOT sta the Palace at 5:30 p.m., which is a half- trac patterns look like within a few tion and impact trac. does not, meaning trac enters that met with several stakeholders, includ- hour earlier than those with regular miles of the venue, and also weather e center — which uses instant venue far more quickly. ing PS&E, to discuss project timelines tickets, but the Palace may push that and parking information. Unlike trac messages, social media, emails, and Road construction has been a con- and the impacts to trac,” said Rob even earlier to 5 p.m., Mannion said. apps such as Waze, Moveable Ink al- in-arena PA announcements to com- stant for Palace Sports and its venues Morosi, MDOT’s spokesman for the “We’re making sure entertainment lows PS&E to embed dynamic messag- municate with fans — can reroute traf- since they opened. I-75 project, via email. “MDOT and starts the minute the doors open — ing into the emails, such as game pre- c if weather, accidents or other road “ ere’s always been some sort of PS&E regularly share information so music, videos, live bands; there’s stu views, live statistics and ticket oers. conditions dictate. A wrecker service is ongoing construction pattern around the venues can appropriately plan to do,” he said. “ is is one we can actually put on site for instant dispatch to accidents. one of our facilities,” Mannion said. ahead, and we can work with our con- PS&E also is using technology to bat- messaging in, and give more specic e system, plus road improve- But the I-75 project is the most tractors to limit the inconvenience. All tle trac jams: Even if fans still get fan data,” Mannion said. “It’s a piece, a ments over the years and specialized comprehensive trac issue yet. the stakeholders understood the ne- bogged down by trac, the Palace is tool. As we use it, we’ll get better and software that manages stoplights, has “We see the potential multiple sce- cessity of the work and the tight dead- hopeful it can ameliorate any revenue better at the type of messaging we do.” cut down exit time after Pistons narios night by night,” he said. “ e lines we are dealing with this fall.” loss with the use of in-seat concessions Additionally, the Palace benets games from 60 minutes in 1988 to 25- worst is a fender-bender in middle of Bill Shea: (313) 446-1626 and merchandise sales via a mobile from its digital trac operations cen- 30 minutes today. (a) single lane. We’re working on cre- Twitter: @Bill_Shea19 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 17

Employers react to fees reduction (in costs) because of the pro- contract with Blues plans for health oce by 26 percent the past few years, BLUE CROSS Joel Clark, president of South- gram,” said Konal, who said the Michi- insurance services will receive a list of Pabin said. In 2014, Blue Cross had a FROM PAGE 3 eld-based J.S. Clark Agency Inc., said gan Blues’ physician group incentive physicians and others who are desig- 16.3 percent decrease in pediatric ER the added administrative fee program (PGIP) is one example. nated as Blue Distinction Total Care visits and a 10.9 percent decrease in seen designated Blue Distinction pro- self-funded employers will be asked to Millions of dollars in overall cost providers. ey are encouraged to see adult ER visits, she said. viders in other states. About 50 percent pay is a small price to pay now for ex- savings to the Blues from PGIP, but those providers, but will not be Currently, Blue Cross plans spend of employees in Michigan companies pected savings down the road. there’s scant data on how it has con- charged a lower or higher rate to do so, about $145 billion annually on val- who contract with Blue Cross work out “I have one self-insured large group tained employers’ rising costs, he said. Pabin said. ue-based care that rewards providers of state. with employees in 13 states,” Clark Konal said the information from Blue “We are trying to get patients to see for producing better patient out- On average, the additional fees the said. “My client will get invoiced about Cross shows annual cost ranges from BDTC providers, but patients can still comes. ose payments, which now employers will pay for Blue Distinc- $14,000 for 2017 (for about 1,700 out- $90 to $110 for each member “attribut- go to whatever provider they want in represent about 33 percent of total tion generally amounts to less than 1 of-state employees) as our portion of ed” to a Blue Distinction provider. He the network,” Pabin said. “Doctors medical claim dollars, have been in- percent of a business’ annual medi- the funding for the providers who are said the fees will vary depending on participating in quality measure- creasing over the past several years cal spend, said Pabin. She could not doing a good job. e health of the which services and state members re- ments tend to be much better, the to- and have doubled from 2014. estimate annual revenue from the population should be better, and there ceive care. In addition, Blue Cross esti- tal cost of care is generally lower, the Konal said Mercer has been evalu- program to Blue Cross, partially be- should be reduced claim costs.” mates net member savings of about quality is higher and patients (are) ating value-based incentive programs cause it depends on how many out- Jerry Konal, principal and employ- $50 per member attributed to a Blue getting recommended for screening in more than 400 metropolitan areas of-state employees use a Blue Dis- ee health and benets oce business Distinction provider. tests much more often.” the past few years to judge the savings tinction provider. leader for Mercer Health and Benets Blue Cross is planning to hold Last year, Pabin said, Blue Cross potential. However, Pabin said, Michigan LLC in Southeld, said some self-fund- meetings with its employer clients Michigan began selecting primary “We have put quite a bit of invest- physicians won’t be paid any more ed employers he has spoken with have over the next several months to ex- care physicians for the distinction ment in evaluating these programs under the Blues’ value-based pro- a slightly more skeptical view of the plain the program and its benets, Pa- designation in the Blues’ value-based across the country,” Konal said. “We gram. “ ey don’t receive any addi- new fees. bin said. Some employers have al- programs that include PGIP, pa- can tell you where you are getting tional incentives beyond the work we “Frankly, they ready received written materials and tient-centered medical homes and good value and who is not, right down are paying them for now” for partici- are a little frus- one-on-one meetings, she said. specialists involved in the Blues’ orga- to the provider level.” pating in value-based programs in trated,” Konal Meanwhile, Mercer has been trying its nized systems of care program. Under Blue Distinction, Blue Cross Michigan, she said. said. “ e reac- best to explain to clients how the Blue Nationally, providers in these net- projects it will generate even more Over the past several years, other tion from clients Cross plan will work, Konal said. “We works total about 59,000 primary care value-based care programs into the commercial carriers have also been is, ‘Wait a minute. hope to meet with (Blue Cross execu- professionals and nearly 59,000 spe- mix for self-funded employers. rolling out national value-based pro- We are being tives) so they can explain it,” he said. cialty clinicians. About 13 million Clark said value-based programs grams, including United Healthcare, charged more? ... Konal said he hopes Blue Cross can Blue Cross members already access are the future direction health insur- Aetna and Cigna. ese programs pro- ey should be develop specialized reports to show distinction program providers, but ers are headed to help employers save vide nancial incentives to physicians doing these each employer how much they have right now only in local Blue Cross money and lower health care ina- and hospitals if they reduce overall Jerry Konal: things anyway. saved by having employees use Blue markets. tion. costs and improve quality. Employers have Now I am paying Distinction providers as compared For employers, the savings using “For years, the industry paid fee for Pabin said Blue Cross’ national ef- skeptical view of more for it and with other providers. BDTC providers can be signicant service and negotiated with networks fort to weave together all Blues val- new fees. they can’t show “I can see the dierences might not over the costs of other providers. Blue on price in exchange for more pa- ue-based programs, which number at the value for it?’ ” be huge for an employer with a few Cross estimated savings range from $6 tients,” Clark said. “You pay me for more than 450, has been in develop- On the other hand, Konal said the thousand employees,” said Konal. to $9 per employee per month, which X-ray and $125 for a primary care visit,” ment since 2013. e Michigan Blues Blue Cross value-based programs “ is is something that has to change” translates to $840 million in savings but that only encourages higher use. began rolling out its value-based pro- have nice components that have the because employers want to see value each year for the self-funded compa- “Value-based programs can save grams in 2005 with the physi- potential to encourage physicians to from the fees. nies, Pabin said. employers money by better managing cian-group incentive program, which improve quality and reduce costs. In Michigan, for example, Blue Dis- utilization and getting care to employ- pays some 40 physician organizations “ ey show savings overall from the How Blue Distinction tinction providers already have cut ees at the right time.” nancial incentives to improve quality program, but Blue Cross has not done works hospitalizations from conditions that Jay Greene: (313) 446-0325 and lower costs. a great job in showing clients their net Employees at companies under could have been treated in a physician Twitter: @jaybgreene WSU Physician Group, DMC pursue backup plans in talks By Jay Greene Healthcare Corp., a Dallas-based, in- [email protected] vestor-owned chain of hospitals. Detroit Medical Center is working “Our rst concern is always we pro- on a “Plan B” in case it cannot get vide access and quality care for pa- Wayne State University Physician Group tients,” said Roger Wiseman, DMC’s back to the contract bargaining table. senior vice president of population Complimentary Trouble is, Wayne State ocials health and president of the Michigan also say they are working on a backup Pioneer ACO. “We are preparing, like in Webinar plan if its clinical services and medical any large contract if expiring, to have a Presented by director contracts can’t be resolved Plan B in place.” with DMC by Sept. 30, when the cur- Wiseman said DMC’s backup plan Comerica Business rent contract expires. involves hiring other physicians and Owner Advisory Services Last week, contract negotiations medical groups to replace UPG doc- broke down between the two academ- tors. ic health partners over the issue of Wayne State’s Plan B is to explore Experience a Higher Level whether DMC can continue to recruit talks with other hospitals in Southeast of Business and physicians employed by Wayne State Michigan, said Jack Sobel, M.D., chair- Wealth Planning University Physician Group. Wayne man of UPG and dean of the Wayne State wants a “nonsolicitation of phy- State University School of Medicine. sicians” clause in its contracts with One hospital system that has come DMC to protect its business interests. up in the past as a potential expanded DMC ocials have refused, saying partner is Henry Ford Health System, they cannot agree to that for various which is also located nearby in Detroit. business and regulatory reasons. Wayne State already trains medical Tuesday, Sept. 13, 2016 ere is a nonsolicitation clause in students at Henry Ford Hospital. Business Succession the current contract, but the proposed Sobel said Wayne State was forced 12 p.m. – 1 p.m. ET agreement for the new contract is to go to Plan B because he maintains Planning - more specic and DMC objects. that DMC ocials “terminated con- e DMC-Wayne State teaching re- tract discussions” Tuesday during a Expect the Unexpected and plan for it To Register: lationship is signicant because the two-hour session at the medical CrainsDetroit.com/webinars medical center is one of Detroit’s larg- school. DMC CEO Joe Mullany told est safety net hospitals with more than Crain’s he disagrees strongly with Powered by: 3,000 physicians on its medical sta. Wayne State’s description that DMC DMC is owned by for-prot Tenet unilaterally terminated contract talks. Comerica Bank. Member FDIC. 18 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016

uses and o ce uses,” Elia said. “But est in audio/vid- e Birmingham and northern KINGSLEY ultimately, we decided the highest eo technology for Oakland County area is a strong mar- FROM PAGE 1 www.crainsdetroit.com (rate of return) and best use for the corporate pre- ket, said Michael O’Callaghan, execu- Editor-in-Chief Keith E. Crain property was the hotel.” sentations. tive vice president and COO of the De- Group Publisher Mary Kramer, (313) 446-0399 Hilton Bloomeld-Detroit, the Kings- Troy-based management company Renovations troit Metro Convention & Visitors or [email protected] ley name will live on inside the hotel, Hotel Investment Services Inc., which are expected to Bureau. e market’s overall average Editor Jennette Smith, (313) 446-1622 or [email protected] which was built in 1950s, attached to runs the DoubleTree in Bay City and begin in Novem- daily rate for all hotels is about $95, up Director, Digital Strategy, Audience Development its banquet room space, Elia said. the Inn at St. John’s in Plymouth, will ber and to wrap 3 percent from last year, he said, ac- Nancy Hanus, (313) 446-1621 or [email protected] continue to manage the Kingsley after up a year from cording to STR Inc. data. Managing Editor Michael Lee, (313) 446-1630 Real estate roots its Doubletree rebranding, and sta then. e hotel e Kingsley competes primarily or [email protected] Joseph Vicari: A real estate lawyer by trade, Elia will be fully trained under the ve-star will remain open with the Embassy Suites by Hilton De- Managing Editor/Custom and Special Projects Daniel Plans a second Joe Duggan, (313) 446-0414 or [email protected] said his entry into the hotel and restau- Hilton program, Elia said. throughout the troit Troy Auburn Hills, Holiday Inn Ex- Assistant Managing Editor Kristin Bull, Muir Seafood. (313) 446-1608 or [email protected] rant businesses came as a byproduct e owners invested several hun- phased project. press–Detroit Birmingham, Courtyard Digital Editor Carlos Portocarrero of real estate purchases. dred thousand dollars to open the Neumann/Smith Detroit Pontiac/Auburn Hills and Au- News Editor Beth Reeber Valone, (313) 446-5875 e Elia Group develops retail Nosh & Rye Deli and a tness center Architecture is the architect on the burn Hills Marriott Pontiac at Center- or [email protected] shopping centers, most recently a cen- and install new high-speed internet, renovation. A general contractor has , said Hotel Investment Services Senior Editor Gary Piatek, (313) 446-0357 point or [email protected] ter at 13 Mile Road and Woodward lighting and carpeting after buying it. not been selected, Elia said. CEO Ron Wilson, whose team oper- Research and Data Editor Sonya Hill, (313) 446-0402 or that’s home to a Panda Express and Now, a complete overhaul of the On the restaurant plans, Joe Vicari ates e Kingsley. [email protected] restaurant. hotel’s exterior is planned, along with Restaurant Group has signed a 15-year Excluding the in Newsroom (313) 446-0329, FAX (313) 446-1687, Qdoba Mexican Eats Townsend Hotel TIP LINE (313) 446-6766 In addition to operating the Detroit extensive interior renovations of its lease for the Kingsley’s 250-seat space, Birmingham, occupancy for that Bir- REPORTERS restaurants, Elia is co-owner of Bir- 151 guest rooms, 15,000 square feet of said CEO Joseph Vicari, and plans to mingham/northern Oakland County Marti Benedetti (313) 446-0416 mingham restaurant 220 Merrill with banquet space, swimming pool and open a second Joe Muer Seafood there group of upscale competitors for the Jay Greene, senior reporter Covers health care, Denise Ilitch. He and Shiman, who is lobby, which will be converted into a in early February. Northern Lakes Sea- past 12 months has been 67.1 percent insurance, energy, utilities and the environment. (313) 446-0325 or [email protected] currently building two mixed-use proj- two-story lobby, Elia said. food Co. operated a restaurant there for that set of hotels, he said, and aver- Chad Halcom Covers litigation, the defense industry, ects in downtown Birmingham, be- e renovations will bring modern before relocating to Troy in 2013. age daily rates have been $125.71, up education, Macomb and Oakland counties. (313) came connected through a mutual variations of the Hilton standard to the e Kingsley location is far enough 4.4 percent over the previous 12 446-6796 or [email protected] Tom Henderson Covers banking, nance, technology friend. hotel, he said, creating a new exterior north not to compete with the original months, based on STR data. and biotechnology. (313) 446-0337 or e two bought the hotel through and a contemporary interior. Joe Muer Seafood in downtown De- “Everyone knows where the Kings- [email protected] Kingsley Hospitality LLC for an undis- e Kingsley was built in 1958, and troit, Vicari said. ley is,” said Chuck Skelton, president of Kirk Pinho Covers real estate, city of Detroit. (313) 446-0412 or [email protected] closed amount in May 2014 from its west building was added in 1983, “We feel ... a rst-class sh house, Ann Arbor-based Hospitality Advisors Adrienne Roberts General assignment. (313) 446-1612 Kingsley Ventures LLC, which was reg- Elia said. e last renovation of the seafood restaurant is something that’s Consulting Group Inc. Bill Shea, enterprise editor Covers media, advertising istered to John Frasco. property was in 1997. missing in that area,” he said. e renovation and a liation with and marketing, the business of sports, and transportation. (313) 446-1626 or [email protected] e property ended its decade-long “We expect it to (continue to) be not e Bloomeld Hills location will Hilton’s Doubletree brand and the Lindsay VanHulle, Lansing reporter. (517) 657-2204 a liation with Carlson Rezidor’s Radis- only a prime meeting space but ... to be similar to the downtown location, Hilton reservation system cement the or [email protected] a few months later, returning to the grow with the millennials,” Elia said. with the same rm, hotel in its current location, he said. Dustin Walsh, senior reporter Covers the business of son Ron and Roman law, auto suppliers, manufacturing and economics. independent Kingsley Inn banner. “We specically designed our hotel to Inc. in Birmingham, doing the design, “It’s been a go-to place for years. (313) 446-6042 or [email protected] “We were, at that time, developing be modern and fresh and to have all Vicari said. e restaurant group may is puts a nice brand on top of it that Sherri Welch, senior reporter Covers nonprots, services, food, retail and hospitality. (313) 446-1694 or dierent development options for the the technology that group expects,” in- also eventually operate the hotel’s people are loyal to and respect,” Skelt- [email protected] property … looking at dierent retail cluding high-speed Wi-Fi and the lat- banquet business, Elia said. on said. ADVERTISING Sales Inquiries (313) 446-6032; FAX (313) 393-0997 Advertising Director Matthew Langan add operation expertise,” said Sarafa, with a national retailer. 2012. In August, Capitol Bancorp de- Senior Account Manager Katie Sullivan who said the fund could grow as need- clared bankruptcy and eventually went Advertising Sales Gerry Golinske, Catherine Grace, SARAFA Infusion of PE funds Joe Miller, Diane Owen, Sarah Stachowicz, FROM PAGE 3 ed with additional family money, and out of business. Most of its partner Classied Sales Manager Angela Schutte, that as the o ce builds a track record, it “Mike is picking up where Mike banks were shut down by federal regu- (313) 446-6051 Classied Sales Lynn Calcaterra, (313) 446-6086 “We were fortunate to get Mike to could raise a second fund that would George left o, as the titular head of the lators. Meetings/Events Director Kim Winkler join us. We wanted a leader to come in also include outside limited partners. Chaldean community,” said John Don- e eventual sale to Level One re- Events Manager Kacey Anderson and work with Omar and Kevin. Mike e o ce employs ve and plans to nelly, managing director of the Grosse turned a healthy prot to Sarafa’s inves- Senior Art Director Sylvia Kolaski Marketing Manager Marilyn Barnes was a big free agent. It was Kevin Du- be at 15 by year’s end. Sarafa said a hu- Pointe investment banking rm Don- tors. Special Projects Coordinator Keenan Covington rant and Mike Sarafa,” said Saber Am- man resource manager is joining the nelly Penman & Partners, “Mike did what many others Sales Support Suzanne Janik mori, making a joking reference to the o ce this month and he is looking to Michael George, a co-founder of couldn’t. He got out of the burning Production Manager Wendy Kobylarz Production Supervisor Andrew Spanos most prominent recent free agent hire a nancial analyst. Melody Farms Dairy Co. and the Chaldean building and protected his people,” said CUSTOMER SERVICE player in the National Basketball Asso- Vision Investment has several port- Iraqi American Association of Michigan, Donnelly. Main Number: Call (877) 824-9374 ciation. folio companies already. One is new. died in 2014 at age 81. Donnelly praised “I’m thrilled to see additional private or [email protected] While all four brothers and Sarafa e others are companies the brothers Sarafa for skillfully navigating an exit equity rms in Michigan,” said Michael Subscriptions $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. Outside U.S.A., add $48 are managing directors of the family owned that have been folded into the from the Bank of Michigan’s partner- Beauregard, a senior partner at De- per year to out-of-state rate for surface mail. Call (313) o ce, Saber Ammori and Mark Vision umbrella. ship with Lansing-based Capitol Ban- troit-based Huron Capital Partners LLC, 446-0450 or (877) 824-9374. Denha will concentrate on the T-Mo- Prior to the formal launch of the corp Ltd. annually the state’s most active PE rm. Single Copies (877) 824-9374 Reprints (212) 210-0750; or Krista Bora at bile business. family o ce, a deal was struck for it to When the Bank of Michigan was “What they are doing is consistent [email protected] open and operate 20 Jamba Juice stores founded, it was part of a national chain with a trend in private equity today, To nd a date a story was published (313) 446-0406 or Food, real estate focus in Michigan and 20 in southern Florida of community banks Capitol Bancorp which is to have more of an operational e-mail [email protected] Crain’s Detroit Business is published by Sarafa said the new fund will target in July. Jamba Juice Co. (Nasdaq: JMBA) was building. Its model was to own 51 focus,” said Kevin Prokop, a managing Crain Communications Inc. investments in food and retail compa- is based in Emeryville, Calif., and sells percent of the banks, with local busi- partner at Detroit-based Rockbridge Chairman Keith E. Crain nies and real estate developments, with healthy food and juice products. ness leaders owning 49 percent. Growth Equity LLC. “People who have President Rance Crain Treasurer Mary Kay Crain a focus on companies with sales of be- Vision Investment will open its rst e Federal Deposit Insurance Corp. been operators are marrying their skills Senior Executive Vice President William A. Morrow tween $3 million and $30 million a year three Jamba Juice outlets inside Meijer later ruled, as the recession hit, that to capital. Executive Vice President/Director of Strategic and EBIDTA (earnings before interest, stores in November and two streetside each member bank shared scal re- “And they are smart to focus on the Operations Chris Crain Executive Vice President/Director of Corporate depreciation, taxes and amortization) locations, in Ann Arbor and Southeld, sponsibility for any nancial failings of lower middle market. It’s easier there to Operations KC Crain of between $500,000 and $5 million a in the rst quarter. the others. nd companies that need your guid- Vice President/Production & Manufacturing year. Moved into the portfolio are about Sarafa raised $3 million and bought ance, and those are small ships that are Dave Kamis Chief Information Ocer Anthony DiPonio e brothers have been involved in 40 Comcast Xnity stores the brothers out Capitol Bancorp’s share in July easier to turn around,” he said. G.D. Crain Jr. Founder (1885-1973) real estate development and retail food operated inside Wal-Mart and Best Buy Mrs. G.D. Crain Jr. Chairman (1911-1996) businesses. Kevin Denha was a fran- stores in Pennsylvania and Indiana, INDEX TO COMPANIES Editorial & Business Oces chise developer for 7-Eleven, his brother and four new retail strip mall centers, These companies have signicant mention in this week’s Crain’s Detroit Business: 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 has owned a variety of convenience including newly nished centers in Alden Development Group ...... 1 Oakland University ...... 10, 12 Cable address: TWX 248-221-5122 AUTNEW DET stores, and Saber Ammori was the lead Ferndale and Westland and centers be- American Society of Employers ...... 8 Palace Sports & Entertainment ...... 3 CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published franchisee for Fuddruckers in the state ing built in Clarkston and Clinton Blue Cross Blue Shield of Michigan ...... 3 Saginaw Valley State University ...... 10 weekly, except for a special issue the third week of November, and no issue the third week of December by Crain of Michigan. Township. Detroit Lions ...... 7 Schoolcra College ...... 12 Communications Inc. at 1155 Gratiot Ave., Detroit MI “We want to stay in our wheelhouse,” Sarafa said he has several deals in Detroit Medical Center ...... 17 Small Business Association of Michigan ...... 1 48207-2732. Periodicals postage paid at Detroit, MI and Eastern Michigan University ...... University of Detroit Mercy ...... additional mailing o¦ces. POSTMASTER: Send address changes said Safara. due diligence, two of them growing out 9, 12, 13 13 to CRAIN’S DETROIT BUSINESS, Circulation Department, P.O. He said the fund will invest in of companies he met in August at the The Elia Group ...... 1 University of Michigan ...... 11 Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in healthy, small companies in need of Crain’s Food Summit, an event meant Joe Vicari Restaurant Group ...... 18 University of Michigan-Dearborn ...... 11 U.S.A. Entire contents copyright 2016 by Crain Communications Inc. All capital to grow and in turnaround situ- to help jump-start connections in the Kingsley Inn ...... 1 Vision Entertainment Partners LLC ...... 3 rights reserved. Reproduction or use of editorial content in any ations where it can provide operational Michigan food industry. Another Vi- Lake Superior State University ...... 9 Walsh College ...... 12 manner without permission is strictly prohibited. assistance or bring in management sion Investment initiative is a deal to M-1 Rail ...... 4 Washtenaw Community College ...... 12 help. invest in a household furnishings com- Michigan Department of Transportation ...... 3 Wayne State University ...... 9, 12, 17 “We really like deals where we can pany. Still another is a 30-store deal Michigan State University ...... 9, 11 Wireless Vision Holdings LLC ...... 3 CRAIN’S DETROIT BUSINESS // SEPTEMBER 5, 2016 19 ON THE WEB RUMBLINGS WEEK AUG. 27- SEPT. 2 Detroit Digits South eld-based Fox Sports Half-day State launched a new city-focused A numbers-driven look at last week's Detroit branding campaign during headlines: Detroit fairgrounds Tigers game telecasts with ve cinéma Fridays in vérité-style commercials to plans: Housing, 33 be unveiled over summer a top The number of years in business for the next ve retail, theater Mexicantown restaurant El Zocalo, weeks. which was expected to close Sunday.  Laurent cool work perk pdated plans released last Bresson week for the former site of resigned as hen it comes to workplace Of the 230 votes, 101 — 44 the Michigan State Fair- $3.9 million president and Wwish lists, a fully stocked percent — went to “half-day Fridays Ugrounds in Detroit include a walkable The amount of a research grant COO of Auburn snack room is no match for being in summer.” A pet-friendly o ce development with housing, retail awarded to the University of Hills-based able to leave the o ce early on a came in second with 31 votes, Michael space, a multiplex theater and a large Michigan by the National Nexteer summer Friday. followed by paid time o for Richardson park. More community meetings are Institutes of Health to accelerate Automotive at’s according to an uno cial volunteering (19 votes) and planned this fall before the City cross-disciplinary research through Corp. Bresson, poll of Crain’s readers as part of our company-provided Fitbits and Council is presented with a site plan the new Michigan Integrative 44, left on good terms to pursue an Cool Places to Work in Michigan incentives for being active (18 votes). in early 2017, city o cials said. Musculoskeletal Health Core undisclosed opportunity, the report published earlier this week. Not as popular: paternity leave, a Center. company said. Michael Richardson, As part of that report, we looked at meditation room or unlimited snacks. 60, senior vice president and chief the most popular perks at the 75 See the full results of the poll and COMPANY NEWS strategy o cer, is the interim winning companies and asked our full report on creating magni -  Metro Detroit residents can have $2.8 billion replacement. readers which one they would most cent workplaces at crainsdetroit. groceries and other products The sale price for New York City-based  Cara Graninger, executive want at their o ces. com/coolplaces. delivered to their doorsteps anytime Rouse Properties Inc., owner of director of Living Arts in Southwest in a new arrangement between Southland Center in Taylor and four Detroit, said she plans to step down Walker-based retailer Meijer Inc. and other malls in Michigan, paid by an to return to a teaching artist role with Alabama app-based grocery delivery a liate of Brook eld Asset the nonpro t arts organization. What happens when Wall service company Shipt Inc. Meijer’s Management Inc. rst foray into home delivery launches Sept. 15 in a membership-based Brighton. Kutcher advises profes- OTHER NEWS Street likes your bank deal service to residents of Detroit and sional, college and high school teams Half of the schools on Michi- So much for the argument made by banks approved the sale in July, other locales. nationally and founded a clinic at the gan’s new list of low-performing Deutsche Bank and other institutional Chemical stock was at $39.12 a  Meta Physica Massage & Sauna University of Michigan. public schools are in Detroit but investors that Troy-based Talmer share, up from $29.67 when the deal won $50,000 in the 2016 Hatch Detroit  e owner of the Fern- cannot be closed by the state until Bancorp should have shopped for a was announced, making the deal new-business contest among four dale-based Detroit Metro Times, 2019 at the earliest, Gov. Rick Snyder’s better deal when it was announced in worth $1.4 billion. nalists at the Hatch O event. Cleveland-based Euclid Media Group, o ce said, angering some Republi- January that it had agreed to be When the deal formally closed Comerica Bank sponsors the prize in bought out John Badanjek, the can lawmakers and school-choice bought by Midland-based Chemical last week, Chemical’s stock was at the competition presented by former industry rival it hired as advocates, AP reported. Financial Corp. for $1.1 billion. $46.19 a share, which valued the deal Opportunity Detroit. e other nalists publisher last year, as one of the  Michigan’s 12 accountable care Talmer execs didn't seek other at $1.7 billion. were clothing boutique Bird Bee, alt-weekly’s minority owners and organizations again fared better in bidders at the time, calling the deal a Among other things, there’s been ceramic design and manufacturing publisher. Terms were not disclosed. 2015 than national averages in saving merger of equals. Talmer sharehold- a question about what the deal studio Corbé, and urban farm and  Detroit-based Peninsula Capital Medicare money, sharing savings ers would own 45 percent of means for sponsorships, such as catering business Coriander Kitchen & Partners LLC announced it has and improving quality, said an Chemical stock, getting $1.61 in cash the name sponsorship of the Free Farm. nished raising a sixth fund, with analysis by Crain’s. Seven of the 12 and 0.4725 shares of Chemical stock Press marathon in October. (Talmer  Champps Kitchen and Bar capital commitments of $402 million. ACOs saved enough money for for each share of Talmer they owned. is at the beginning of a three-year locations in Livonia and Troy and the  Healthy Living Medical Supply Medicare to earn a total of $26.1 While some investors didn’t like sponsorship contract.) is fall’s Bailey’s Sports Grille in Canton plans to move its corporate head- million for their owners. the deal, the market did. Demand for race will still be under the Talmer Township closed along with 22 other quarters to Detroit from Troy in Pittsburgh-based U.S. Steel sued both Talmer stock and Chemical brand, with the next two bearing restaurants across the U.S. as part of a November as part of an e ort to Michigan over an e ort to curb stock drove both share prices sharply the name of the Detroit Free Press/ cost-savings measure by Dal- locate o ces closer to its customers Detroit-area air pollution. U.S. Steel higher. When shareholders at both Chemical Bank Marathon. las-based parent company Last Call and health plan clients, o cials said. said the state Department of Environ- Guarantor LLC.  New York City-based Siebert mental Quality illegally enacted a rule  Restaurateur and chef Omar Brandford Shank & Co. LLC, the that calls for the company to submit a National group to assist Detroit Mitchell, who has used his build- nation’s No. 1 minority-owned plan for meeting sulfur dioxide your-own-burger concept to open municipal nance and underwriting compliance standards, e Detroit Great Lakes Burger Bar locations in rm, changed its name to Siebert News reported. businesswomen of color Detroit and Garden City, is using the Cisneros Shank  A dozen nonpro t veterans Women of color in support structure that grows same idea for pasta for I Luv Cheese, & Co. LLC. e agencies in Michigan —including ve Detroit will get more help with them personally and which opened a Clinton Township change re ects a liated with the Detroit VA — are in growing their busi- professionally.” location last week and will debut in Henry Cisneros, sharing in nearly $8.1 million in scal nesses after a national e two groups will downtown Detroit this week. the former U.S. 2017 grants newly awarded by the U.S. advocacy organization launch a small-business  Rock City Eatery will open the Department of Department of Veterans A airs to help and the Michigan Black funding event in October to doors to its new, larger space in Housing and prevent homelessness for low-income Chamber of Commerce match entrepreneurs with Detroit’s Midtown district Sept. 8 Urban Develop- veterans and their families. signed a joint memoran- capital, Co eld said. Date with an expanded, more experimen- ment secretary,  Detroit has followed through dum of understanding and location are not yet tal menu. Rock City will be in a becoming an on its threat to sue hundreds of last week that will create determined. Natalie Co eld 3,600-square-foot space at 4216 equity owner. Henry Cisneros nancial institutions and other programming and is week, the group Woodward Ave. Company companies in an attempt to recoup reduce funding challenges. plans to launch an online accelerator  South eld-based Covisint Corp. chairwoman, CEO and majority $12.2 million in unpaid property e MBCC’s Women of Color program called Prospectus. Program will add three new independent owner Suzanne Shank is based in taxes, AP reported. e lings last Entrepreneur Circle inked the deal partners include Google Inc. and members to its board of directors in Detroit. week came at the deadline for the Aug. 30 with Washington, D.C.- Wells Fargo & Co. e online an agreement with New York  ree Detroit hospitals city to sue to get the money it said is based Walker’s Legacy. component is a nine-week training City-based Dialectic Capital — Sinai-Grace Hospital, Harper owed from 2010-12 on more than “Women that have exceeded their program focused on legal, nancing Management LP and its a liates, University Hospital and Detroit 1,500 parcels of land. sales quota; that’s excellent. But a lot and resources, Co eld said. which own about 6.2 percent of the Receiving Hospital, all part of the  Motor City Match began taking of what we o er is qualitative,” said Walker's Legacy is named after C. company’s outstanding shares. Detroit Medical Center — are among applications from entrepreneurs who Natalie Co eld, Walker’s Legacy J. Walker, the rst self-made female  Je rey Kutcher, M.D., a leading 20 Michigan facilities to lose some want to bid for a portion of $500,000 founder and CEO. “Women of color millionaire in U.S. history and a pioneer in total athlete brain health, Medicare funding due to high in grant funding. Applications are lack the social support system to help historical female entrepreneur. has opened the Sports Neurology infection rates this year, e Detroit available at MotorCityMatch.com their business. at’s why our work is For more information, go to Clinic at The Core Institute in News reported. and due Oct. 1. important; we bring that network walkerslegacy.com. DBpageAD_DBpageAD.qxd 8/5/2016 1:23 PM Page 1

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